CAFR Report FY 2007-2008
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Comprehensive Annual Financial Report
For the Fiscal Year ended June 30, 2008
On the Front Cover:
The front cover features the Ki-a-Kuts pedestrian bridge, named after an
influential Native American and member of the Kalapuyan Indian tribe who
lived in this area during the 1800s. The $2.9 million bridge was a joint effort
by the Cities of Tigard, Tualatin, Durham and Clean Water Services. The
Oregon Department of Transportation (ODOT) provided $1.4 million in grant
funds for this project. The bridge provides a major bike and pedestrian
thoroughfare across the Tualatin River connecting Tigard, Tualatin and Durham
and points beyond. In the immediate area of the bridge there are more than 200
acres of park and open-space property owned by the four partners.
Photography provided by Tigard resident Doug Vorwaller
ii
CITY OF TIGARD, OREGON
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended June 30, 2008
Prepared by:
City of Tigard - Financial and Information Services Department
iii
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City of Tigard, Oregon
Table of Contents
Page
INTRODUCTORY SECTION:
Letter of Transmittal 1
Certificate of Achievement for Excellence in Financial Reporting 7
Organization Chart 8
Mayor and City Council Members 9
FINANCIAL SECTION:
Independent Auditors' Report 13
Management's Discussion and Analysis 15
Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Assets 31
Statement of Activities 32
Fund Financial Statements
Major Governmental Funds:
Balance Sheet 34
Statement of Revenues, Expenditures, and Changes in Fund Balance 35
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance to the Statement of Activities 36
Proprietary Funds:
Statement of Net Assets 37
Statement of Revenues, Expenses, and Changes in Fund Net Assets 38
Statement of Cash Flows 39
Pension Trust Fund:
Statement of Plan Net Assets 40
Statement of Changes in Plan Net Assets 40
Notes to Basic Financial Statements 43
Required Supplementary Information:
Schedules of Revenues and Expenditures - Budget and Actual:
General Fund 67
Gas Tax Fund 68
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet 71
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 72
Special Revenue Funds:
Combining Balance Sheet - Nonmajor Special Revenue Funds 75
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 76
Schedules of Revenues and Expenditures - Budget and Actual:
Traffic Impact Fee Fund 77
Electrical Inspection Fund 78
Underground Utility Fund 79
v
City of Tigard, Oregon
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued:
Other Supplementary Information, Continued:
Special Revenue Funds:
Schedules of Revenues and Expenditures - Budget and Actual, Continued:
Criminal Forfeiture Fund 80
Insurance Fund 81
Building Fund 82
Traffic Impact Fee Urban Services Fund 83
Urban Services Fund 84
Street Maintenance Fee Fund 85
Parks SDC Fund 86
City Gas Tax Fund 87
Debt Service Funds:
Combining Balance Sheet - Nonmajor Debt Service Funds 90
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 91
Schedules of Revenues and Expenditures - Budget and Actual:
Bancroft Debt Service Fund 92
General Obligation Bond Debt Service Fund 93
Urban Renewal Agency Debt Service Fund 94
Capital Projects Funds:
Combining Balance Sheet - Nonmajor Capital Projects Funds 97
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Capital Projects Funds 98
Schedule of Revenues and Expenditures - Budget and Actual:
Parks Capital Fund 99
Facility Fund 100
Urban Renewal Agency Capital Project Fund 101
Proprietary Funds:
Enterprise Funds:
Schedules of Revenues and Expenditures - Budget and Actual:
Sanitary Sewer Fund ......................................................................................................................................................105
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses - Sanitary Sewer Fund ..................................................................................................106
Storm Sewer Fund .........................................................................................................................................................107
Water Quality and Quantity Fund ...............................................................................................................................108
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses - Storm Sewer Funds ...................................................................................................109
Water General Fund ......................................................................................................................................................110
Water System Development Fund ...............................................................................................................................111
Water Capital Projects Fund .........................................................................................................................................112
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses - Water Funds ...............................................................................................................113
Reconciliation of Budgetary Fund Balances to Generally Accepted
Accounting Principle Basis Net Assets .................................................................................................................114
vi
City of Tigard, Oregon
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued:
Other Supplementary Information, Continued:
Internal Service Funds:
Combining Statement of Net Assets ...................................................................................................................................117
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets .......................................................118
Combining Statement of Cash Flows ..................................................................................................................................119
Schedules of Revenues and Expenditures - Budget and Actual:
Central Service Fund .....................................................................................................................................................120
Fleet/Property Management Fund ..............................................................................................................................121
Other Schedules:
Schedule of Property Tax Transactions and Outstanding Balances ...........................................................................125
Schedule of Bond and Bond Interest Transactions .......................................................................................................126
Schedule of Future Debt Service Requirements of
Long-term Notes Payable ..............................................................................................................................................127
Schedule of Future Debt Service Requirements of
Bancroft Improvement Bonds ......................................................................................................................................128
Schedule of Future Debt Service Requirements of
General Obligation Bonds .............................................................................................................................................129
STATISTICAL SECTION:
Net Assets by Component ....................................................................................................................................................132
Changes in Net Assets ...........................................................................................................................................................134
Fund Balances of Governmental Funds .............................................................................................................................138
Changes in Fund Balances of Governmental Funds .........................................................................................................139
Government - Wide Revenues ............................................................................................................................................140
Government - Wide Expenses by Function ......................................................................................................................141
General Governmental Revenues by Sources ....................................................................................................................142
General Governmental Expenses by Function ..................................................................................................................143
Market Value and Assessed Value of Taxable Property ...................................................................................................144
Property Tax Rates - Direct and Overlapping Governments .........................................................................................145
Principal Property Taxpayers ...............................................................................................................................................146
Property Tax Levies and Collections ...................................................................................................................................147
Special Assessment Collection .............................................................................................................................................148
Ratio of Annual Debt Service Expenditures for Long-Term Debt to
Total Governmental Expenditures ...................................................................................................................................149
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt per Capita ............................................................................................................................................150
Computation of Direct and Overlapping General Obligation Debt ..............................................................................151
Computation of Legal Debt Margin ....................................................................................................................................152
Ratio Debt by Type ...............................................................................................................................................................153
Demographics Statistics ........................................................................................................................................................154
Principal Employers ...............................................................................................................................................................155
Property Value and Construction ........................................................................................................................................156
Full-time Equivalent City Government Employees by Function ....................................................................................157
Operating Indicators by Function/ Program ......................................................................................................................158
Capital Assets Statistics by Function ...................................................................................................................................159
AUDIT COMMENTS AND DISCLOSURES REQUIRED BY
STATE REGULATIONS:
Auditors' Comments and Disclosures .................................................................................................................................160
Vii
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viii
INTRODUCTORY SECTION
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January 30, 2009
Citizens of Tigard
Honorable Mayor
Members of the City Council
It is our pleasure to submit to you the Comprehensive Annual Financial Report of the City of
Tigard, Oregon, for the fiscal year ended June 30, 2008.
Oregon Revised Statutes (ORS) 297.425 requires that every municipal corporation publish
within six months of the close of each fiscal year a complete set of financial statements
presented in conformity with accounting principles generally accepted in the United States of
America (GAAP) and audited in accordance with auditing standards generally accepted in the
United States of America by a firm of licensed certified public accountants.
This report consists of management's representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of all
of the information presented in this report. To provide a reasonable basis for making these
representations, management of the City has established a comprehensive internal control
framework that is designed both to protect the City's assets from loss, theft, or misuse and to
compile sufficient reliable information for the preparation of the City's financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh their
benefits, the Cites comprehensive framework of internal controls has been designed to provide
reasonable rather than absolute assurance that the financial statements will be free from material
misstatements. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
The City's financial statements were audited by Grove, Mueller & Swank, P.C., a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City for the fiscal year ended June 30, 2008, are
free of material misstatement. The independent audit involved examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by the management; and evaluating
the overall financial statement presentation. The independent auditors concluded, based upon
the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's
basic financial statements for the fiscal year ended June 30, 2008, are fairly presented, in all
material respects, in conformity with GAAP. The independent auditor's report is included in the
Financial Section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read
in conjunction with it. The City's MD&A can be found immediately following the report of the
independent auditors.
1
Profile of the Government
The City of Tigard is located in southeast Washington County, 15 minutes from downtown
Portland, Oregon and along major highways, Interstate 5 and Highway 217. The City is included
in the Metro urban growth boundary and Tigard's closest neighboring cities include Beaverton,
Lake Oswego, Tualatin, Durham, Portland, and King City. A state highway, 99W, runs north
and south through the eastern portion of the City and is a major transportation corridor leading
to the City of Portland. There is also a major greenway called Fanno Creek that connects
neighborhoods to the natural environment and several of the City's parks. The incorporated
area of the City represents 11.81 square miles and has a population of 46,715. The City has
experienced a steady growth since its incorporation in 1961. Population increases have varied
from a yearly change of less than 1% to almost 50% since incorporation. It is projected that the
City will have a population of over 47,000 by 2009. The City can extend its corporate limits by
annexation which is permitted by state statute.
The City is governed by an elected Mayor and four council members who comprise the City=
Council. The City's Charter established the Mayor/Council form of government. Each member
of the City Council is elected at-large to serve a four-year term. The Mayor presides at Council
meetings and is elected at-large for a four-year term. The Mayor and Council provide
community leadership, develop policies to guide the City in delivering services and achieving
community goals, and encourage citizen awareness and involvement.
The City Council appoints a City Manager, who is the chief administrative officer of the City.
The City Manager is responsible for ensuring Council policies are implemented using resources
appropriated by the Council to achieve desired service results in the community.
The City provides a full range of municipal services. These services include police, municipal
court, community planning and development, parks, library, capital improvement planning,
administration and central services, street maintenance, water, and other general public works
activities. The City owns and maintains the wastewater and storm drainage system within the
City limits under an agreement with Clean Water Services. Fire protection is provided by
Tualatin Valley Fire and Rescue.
The City maintains budgetary controls to ensure compliance with legal provisions in the annual
appropriated budget adopted by the City Council. Activities of all funds are included in the
annual adopted budget. The level of budgetary control (that is, the level at which expenditures
cannot legally exceed the appropriated amount) is established by program within each individual
fund.
As demonstrated by the statements and schedules included in the financial section of this report,
the City continues meeting its responsibility for sound financial management.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City of
Tigard operates.
2
Local economy
The City's location in the Portland metropolitan area provides citizens with many diverse
employment opportunities. Unemployment data is not collected specifically for Tigard, so
information related to Washington County and the Portland Metro area is used to gauge the
unemployment rate for the City.
The chart below shows a six year comparison of unemployment rates. The Portland Metro area
and the State of Oregon have the highest rates over the six year time period, with Washington
County and the U.S. lower, although in the past year the rate for the U.S. as a whole has
increased fasster than the Portland Metro area. Washington County leveled out to a rate
consistent with the overall country in 2005, with Portland Metro and Oregon still a little higher.
Rates for all areas during the time period were at their lowest level in 2007, and are currently
increasing.
10,00%
9.00%
8.00%
7.00%
6.00% 0regon
5.00%u - US
4.00% Ptlc Metro
U
3.00%
Vt~ash C
2.001%
1.00%
0.00`'ro
2003 2004 2005 2006 7007 7008
Wholesale trade, retail trade, and the service industry all play a large role in Tigard's economy.
Retail trade has the most establishments; and the retail and service industries employ the most
people. The City has within its boundaries one of the largest shopping malls in the region,
Washington Square. The mall has five major department stores and more than 140 specialty
shops. In 2005, Washington Square completed an 80,000 sq. ft. expansion that added an
additional 28 specialty stores and restaurants. This expansion increased the size of the mall to
over 1.3 million square feet.
Summary of Economic Data
Number of Businesses, as of October 2008 3,455
Median Household Income (2000) $51,581
Primary Economic Sector (receipts /sales) Wholesale Trade & Information
General Fund Permanent Tax Rate $2.51310 per $1000
of assessed value
Total Assessed Value (2008) $4,572,357,820
3
Ten Largest Employers
(as of March 2008)
Employer Product or service Employment
HSBC Card Services Financial Services 1,116
Tigard - Tualatin School District Local school district 779
Macy's Retail department store 704
Nordstrom Retail department store 461
Oregon Public Employees Retirement Public retirement system 396
Providence Health System Health care provider 377
Costco Wholesale Corporation Box store 300
City of Tigard Local government 283
Rockwell Collins Inc. Communications manufacturer 264
The Cheesecake Factory Food service 250
Long-term financial planning
The City has developed a comprehensive long-term financial forecast every year since the 1980's.
By forecasting and anticipating financial trends, the City can develop strategies to respond to
emerging financial trends. The City forecasts operating fund revenues and expenditures over a
five-year period. The forecast is adjusted as each year's final results are known and as budgets
are prepared for the following year. In addition, the City also prepares a five-year Capital
Improvement Program (CIP) that is also updated every year. The CIP is developed through a
process separate from, but parallel to the budget process. The impact on future operating and
maintenance costs are projected from the CIP and then incorporated in the long-term financial
forecast.
Relevant 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 of services and facilities
desired and needed by the public.
In support of this effort, the City has established a set of fiscal policies to ensure that the
public's trust is upheld. With such fiscal policies, the City has established the framework under
which it will conduct its fiscal affairs, ensuring that it is and will continue to be capable of
funding and providing outstanding local government services.
The goals of Tigard's fiscal policies are:
• To enhance the City Council's policy-making ability by providing accurate information
on program and operating costs.
• To assist sound management of the City government by providing accurate and timely
information on current and anticipated financial conditions.
• To provide sound principles to guide important decisions of the Council and
management which have significant fiscal impact.
4
• To set forth operational principles, which minimize the cost and financial risk of the
City's government consistent with services, desired by the public.
• To employ revenue policies which prevent undue or unbalanced reliance on any one
source, distribute the cost of municipal services fairly, and provide adequate funds to
operate desired programs.
• To provide and maintain essential public facilities, utilities, infrastructure, and capital
equipment.
• To protect and enhance the City's credit rating.
• To insure that all surplus cash is prudently invested in accordance with the investment
policy adopted by the Council to protect City funds and realize a reasonable rate of
return.
Major initiatives
The Tigard City Council meets at the beginning of each calendar year to establish goals. Council
goals comprise high-priority tasks or programs that the City Council intends to complete or
initiate during the year, though attainment of these goals may take several years. The goals are
based on the City's Vision Task Force goals, departmental needs, and City Council priorities. In
the goal setting meeting, the City Council reviews information and develops its annual and long-
term goals. Council goals set the priorities for City government and are incorporated into
departmental work plans. For 2008 Council established five goals for the City as follows:
1. Implement Comprehensive Plan
a. Update Tigard zoning maps based on Comprehensive Plan Update
b. Update Tree Code to meet Comprehensive Plan
c. Continue to lobby for light rail in 99W Corridor
d. Develop a 50-year aspirational goal in support of Urban/Rural Reserves Program
2. Implement Downtown Urban Renewal
a. Move forward with Burnham Street Project
b. Complete land use regulations and design standards for the downtown
3. Prepare for 2010 Bond Measure for Parks, Open Spaces and Trails
a. Complete Parks Master Plan
b. Pursue Fanno Park and downtown plaza property acquisition
4. Continue to support the legislature in addressing the financial nees of state and local
governments in Oregon
With the passage of Tigard's Urban Renewal ballot measure, the City established a permanent
funding base to implement the Tigard Downtown Improvement Plan. The formation of the
Urban Renewal District sends a clear message that the City is now financially committed to
carrying out its Downtown Plan and will be in a position to support investments there.
5
Although it will take time for tax revenues to accumulate under the tax increment financing
process, it is anticipated that enough funding will be available for $22 million in public
improvements for downtown. The implementation of all of the projects such as streets, parks,
plazas, a public market, and performing arts center will take up to 20 years to accomplish but
that doesn't mean citizens won't see improvements in the near future. Street improvements, a
downtown streetscape design, and other improvements are already being designed and
construction should begin within one year.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Tigard for its Comprehensive Annual
Financial Report (CAFR) for the fiscal year ended June 30, 2007. This was the 23rd consecutive
year that the City has received this esteemed award. In order to be awarded a Certificate of
Achievement, the government published an easily readable and efficiently organized CAFR.
This report satisfied both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program's requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the City also received the GFOA's Distinguished Budget Presentation Award for its
annual budget for fiscal year 2008-2009. This was the 21st consecutive year that the City has
received this prestigious award. In order to qualify for the Distinguished Budget Presentation
Award, the City's budget document was judged to be proficient in several categories, including as
a policy document, a financial plan, an operations guide, and a communications device.
The preparation of this report was made possible by the dedicated service of the staff of the
Financial and Information Services and our auditors. Each member of the Department has our
sincere appreciation for the contributions made in the preparation of this report. Special
recognition should be given to the Financial Operations staff for their work in preparing this
document. Credit also must be given to the Mayor and City Council for their unfailing support
for maintaining the highest standards of professionalism in the management of the City of
Tigard's finances.
Respectfully submitted,
Craig Prosser Toby LaFrance
City Manager Director of Financial and
Information Services
6
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7
CITIZENS OF TIGARD
Mayor & City Council
City Attorneo,
Community Public Development Policy and
Services Works Services Administration
Police Library Public Community Engineering City Finance
Works Development Administration
Adrrinistration Administration Adrrinistration Administration Engineering C Finance
Department Management Adrrinistration
Operations REaders' Parks Building Street Lights Human Financial
Services & Grounds Inspection & Signals Resources Operations
Support Technical Sanitary Current Risk Adrrinstrative
Services Services Sewer Planning Management Services
Crculaton Storm Long Range Information
Sewer Planning Technology
Street
Maintenance
Fleet
Maintenance
Property
Management
Water
8
CITY OF TIGARD, OREGON
PRINCIPAL OFFICIALS AS OF JUNE 30, 2008
ELECTED OFFICIALS:
Name Term Expires
Mayor Craig Dirksen December 31, 2010
Councilor Sydney Sherwood December 31, 2010
Councilor Gretchen Buchner December 31, 2010
Councilor Nick Wilson December 31, 2008
Councilor Tom Woodruff December 31, 2008
APPOINTED OFFICIALS:
Craig Prosser, City Manager
All may be reached at:
13125 SW Hall Boulevard
Tigard, OR 97223
LEGAL COUNSEL
Ramis, Crew, Corrigan & Bachrach
1727 NW Hoyt Street
Portland, OR 97209
9
TIGARD
10
FINANCIAL SECTION
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GROVE, MUELLER & SWANK, P.C.
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
475 Cottage Street NE, Suite 200, Salem, Oregon 97301
(503) 581-7788
INDEPENDENT A UDITOR'S REPORT
Honorable Mayor and Members of the City Council
City of Tigard
Tigard, Oregon
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Tigard, Oregon as of
and for the year ended June 30, 2008, which collectively comprise the City's basic financial statements as listed
in the table of contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States of America. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic
financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City of Tigard, Oregon as of June 30, 2008 and the respective changes in
financial position and cash flows, where applicable, thereof for the year then ended, in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2009, on
our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards and important for assessing the results of our audit.
Management's discussion and analysis is not a required part of the basic financial statements, but is
supplementary information required by accounting principles generally accepted in the United States of
America. We have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation. However, we did not audit the information and
express no opinion on it.
13
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, required and other supplementary
information, and the statistical section listed in the table of contents are presented for purposes of additional
analysis and are not required parts of the basic financial statements. The required and other supplementary
information have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The introductory and statistical sections have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no
opinion on them.
GROVE, MUELLER, & SWANK, P.C.
CERTIFIED PUBLIC A CCO UNTANTS
By: 64
Charles A. Swank, A Shareholder
January 29, 2009
14
Management's Discussion and Analysis
As management of the City of Tigard, we offer readers this narrative overview and analysis of the financial activities
of the City of Tigard for the fiscal year ended June 30, 2008. It focuses on significant financial issues, major
financial activities, and resulting changes in financial positions, as well as economic factors affecting the City. This
Management's Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that
existed as of the date of the independent auditors' report.
We encourage readers to consider the information presented here in conjunction with the transmittal letter at the
front of this report and the City's financial statements which follow this discussion and analysis.
Financial Highlights
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $290.7 million (net
assets). Of this amount, $38.9 million (unrestricted net assets) may be used to meet the City's ongoing
obligations to citizens and creditors.
• The City's net assets increased $4.5 million over the course of this year's operations. Within this total the net
assets of our business-type activities increased by $1.9 million or 2.2 percent, and net assets of our governmental
activities increased by $2.6 million or 1.3 percent.
• During the fiscal year, the City generated $28.2 million in taxes, charges for services, and other revenues for
governmental programs while incurring expenses from governmental activities totaling $25.6 million, for an
increase in net assets of $2.6 million.
• In the City's business-type activities, revenues decreased by $2.0 million, while expenses decreased by $0.1
million. The decrease in revenues is due primarily to the slow down of building activity in the City and the
corresponding capital contributions which the building activity brings to the City as revenue.
• As of the close of fiscal year 2008, the City's governmental funds reported combined ending fund balances of
$25.3 million, a decrease of $1.2 million. This decrease reflects additional spending on capital projects during
the fiscal year.
• At the end of the fiscal year, unreserved fund balance for the General Fund was $10.8 million, an increase of
$0.9 million or a 9.1 percent increase from the previous year.
• The City's total debt decreased by $0.8 million during fiscal year 2008. This is entirely due to the normal, annual
debt service payments on the general obligation bonds, long-term notes, and Bancroft improvement bonds.
15
Overview of the Financial Statements
In addition to this discussion and analysis, the financial section of this annual report contains the basic financial
statements, required supplementary information, and the combining statements of the non-major funds and
schedules demonstrating legal compliance.
The basic financial statements also include notes that explain the information in the financial statements and provide
more details. The statements are followed by the required supplementary information section that supports the
information in the financial statements.
Required Elements of the
Comprehensive Annual Financial Report
MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL STATEMENTS
Government-wide (full accrual) Fund
Governmental Activities Governmental (modified accrual)
Business-type Activities Proprietary (full accrual)
Fiduciary (full accrual)
Notes to Basic Financial Statements
REQUIRED SUPPLEMENTAL INFORMATION
(other than MD&A)
I
OTHER SUPPLEMENTARY INFORMATION
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City's
finances, in a manner similar to a private-sector business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net assets changed during the most recent
fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will result in cash flows in a future fiscal period. Examples of such items include earned, but uncollected
property taxes, and earned, but unused compensated absences.
Both of the government-wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all
or a significant portion of their costs through user fees and charges (business-type activities).
The governmental activities of the City include the following:
• Community services, police, library, and social services
16
• Public works, including parks and recreation
• Development services, planning and engineering
• Policy and administration
The business-type activities of the City include the following:
• Sanitary sewer
Storm water
• Water
The government-wide financial statements can be found on pages 31-33 of this report.
Fund Financial Statements are designed to display compliance with finance-related legal requirements
demonstrated by the use of fund accounting. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities and objectives. The funds of the City can be
divided into the following categories: governmental funds, proprietary funds, and a fiduciary fund.
Governmental funds are used to account for essentially the same functions reported as governmental activities in
the government-wide financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows of available resources, as well as
on balances of available resources at the end of the fiscal year. Such information may be useful in evaluating a
government's near-term financial capability.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the City's near-term financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains 19 individual governmental funds. Information is presented separately in the governmental fund
balance sheet and the statement of revenues, expenditures, and changes in fund balances for those funds that are
considered significant (major) to the City taken as a whole. These financial statements report four major funds:
General Fund, Gas Tax Fund, the Bancroft Debt Service Fund and the Parks Capital Fund. Data from the other 15
governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these
non-major governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all of its governmental funds. A budgetary comparison
statement has been provided for each fund individually to demonstrate compliance with their budgets.
The basic governmental fund financial statements can be found on pages 34-36 of this report.
Proprietary funds are used to account for a government's business-type activities. The City maintains two different
types of proprietary funds - enterprise funds and internal service funds. Enterprise funds are used to report the
same functions presented as business-type activities in the governmental-wide financial statements. The City uses
enterprise funds to account for its sanitary sewer, storm water, and water operations. Internal service funds are an
accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses
internal service funds to account for fleet maintenance, risk management, office services, finance and accounting,
and other management services.
The City reports all three of the enterprise funds as major funds. These funds are the Sanitary Sewer Fund, the
Storm Sewer Fund, (which consists of the budgetary Storm Sewer and the Water Quality/ Quantity Funds), and the
Water Fund, (which includes the budgetary Water, Water SDC, and Water CIP Funds). However, for budgetary and
legal purposes these funds are accounted for separately. Conversely, all internal service funds are combined into a
17
single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided as other supplementary information.
The City also adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance with the
budget, budgetary comparison statements have been provided for the enterprise funds as other supplementary
information on pages 101-110 of this report. Budgetary comparisons for the internal service funds are provided on
pages 116-117 of this report.
The proprietary fund financial statements can be found on pages 37-39 in the basic financial statements.
Fiduciary funds are used to report assets held in a trustee or agency capacity for others and therefore cannot be
used to support the government's own programs. The City has a pension trust fund that accounts for employee
defined contribution plans. The accounting used for the fiduciary fund is much like that used for the proprietary
funds.
No budget is adopted for the fiduciary fund in accordance with Oregon Local Budget Law.
The fiduciary fund financial statements can be found on page 40 in the basic financial statements.
Notes to the Basic Financial Statements provide additional information that is essential to a full understanding
of the data provided in the government-wide and fund financial statements. The notes to the financial statements
can be found on pages 43-63 of this report.
The combining statements referred to earlier in connection with non-major governmental funds and business-type
funds are presented immediately following the required supplementary information. Combining and individual fund
statements and schedules can be found on pages 71-126 of this report.
Government-wide Financial Analysis
Net assets. As noted earlier, net assets may serve over time as a useful indicator of the City's financial position. In
the case of the City, assets exceeded liabilities by $290.6 million at June 30, 2008.
The largest portion of the City's net assets (85 percent) reflects its investment in capital assets (e.g., land, buildings,
roads, sewers, storm water facilities, etc.) less any related debt used to acquire those assets that is still outstanding.
None of these capital assets, including the City infrastructure, are available for future spending. Although the City's
investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these
liabilities.
18
City of Tigard, Oregon
Net Assets as of Fiscal Year-end
(in millions)
Governmental Business-type
Activities Activities Total
FY 07-08 FY 06-07 FY 07-08 FY 06-07 FY 07-08 FY 06-07
Assets
Current and other assets $ 32.6 $ 34.0 $ 21.6 $ 24.6 $ 54.2 $ 58.6
Net capital assets 189.2 185.7 68.4 64.0 257.6 249.7
Total assets 221.8 219.7 90.0 88.6 311.8 308.3
Liabilities
Other liabilities 6.3 5.0 2.0 2.4 8.3 7.4
Outstanding debt 12.9 14.6 - - 12.9 14.6
Total liabilities 19.1 19.6 2.0 2.4 21.1 22.0
Net Assets
Invested in capital assets,
net of related debt 177.7 173.4 68.4 64.0 246.1 237.4
Restricted 2.0 1.5 3.8 3.8 5.8 5.3
Unrestricted 23.0 25.2 15.8 18.4 38.8 43.6
Total net assets $ 202.7 $ 200.1 $ 88.0 $ 86.2 $ 290.7 $ 286.3
The City's net assets increased by $4.5 million during the fiscal year. This increase is due to revenues increasing
faster than expenses.
The revenues and expenses shown on the next table explain changes in net assets for fiscal year 2008.
19
City of Tigard, Oregon
Changes in Net Assets
(in millions)
Governmental Business-type
Activities Activities Total
FY 07-08 FY 06-07 FY 07-08 FY 06-07 FY 07-08 FY 06-07
Revenues
Program revenues
Charges for services $ 5.4 $ 7.1 $ 10.9 $ 9.2 $ 16.3 $ 16.3
Capital grants and contributions 0.7 0.1 - 3.9 0.7 4.0
Operating grants and contributions - 0.3 0.1 - 0.1 0.3
Total Program revenues 6.1 7.5 11.0 13.1 17.1 20.6
Taxes 9.1 11.5 - - 9.1 11.5
Interest 1.5 1.5 1.0 1.0 2.5 2.5
Other 11.5 9.8 0.2 0.1 11.7 9.9
Total General revenues 22.1 22.8 1.2 1.1 23.3 23.9
Total revenues 28.2 30.3 12.2 14.2 40.4 44.5
Expenses
Community services 13.7 11.7 - - 13.7 11.7
Public works 2.5 2.4 - - 2.5 2.4
Development services 5.2 4.7 - - 5.2 4.7
Policy and administration 3.8 4.4 - - 3.8 4.4
Interest on long-term debt 0.4 0.1 - - 0.4 0.1
Sewer - - 1.9 1.5 1.9 1.5
Storm water - - 1.6 1.5 1.6 1.5
Water - - 6.8 7.4 6.8 7.4
Total expenses 25.6 23.3 10.3 10.4 35.9 33.7
Changes in net assets 2.6 7.0 1.9 3.8 4.5 10.8
Beginning net assets 200.1 193.1 86.1 82.3 286.2 275.4
Ending net assets $ 202.7 $ 200.1 -7-88-0 -7-86-1 $ 290.7 $ 286.2
Revenues
Governmental Activities
Property taxes continue to be a major source of revenue for the funding of City programs. Oregon voters passed
Measure 50, a State constitutional amendment, which fundamentally changed property tax calculation and
administration in Oregon in May 1997. Measure 50 converted operating property tax authority from a "levy-based"
system to a "rate-based" system, and it became effective in FY 1997-98. The City's tax base, which was $6,891,856
in FY 1997-98, was converted to a permanent tax rate of $2.5131 by the measure. The measure established FY
1997-98 assessed value at FY 1995-96 values less 10 percent.
The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that year. Assessed
value growth is limited to 3 percent per year, plus a pro-rated share of new construction and annexations. The City
20
has seen significant growth in construction since then and the annexation of the Walnut Island area which occurred
in FY 1999-00.
Measure 50 did not change the basis for calculating General Obligation (GO) debt service levies. GO debt service
levies are calculated to produce enough tax revenues that (when combined with other resources such as interest
earnings and fund balance) will be enough to pay debt service due on these voter approved bonds. On May 21,
2002, voters approved a bond measure in the amount of $13.0 million for a new library. The City sold the bonds to
the Oregon Economic and Community Development Department. Taxes collected through the tax levy will repay
this bonded debt.
Both other revenues and charges for services combined constitute 65 percent of total governmental revenues. The
primary sources include the following:
• Franchise fees are charged to public utilities for the use of the public right-of-way. Franchised activities
paying the fee include electricity, natural gas, telecommunications, cable television, and solid waste haulers -
$4,551,169.
• Intergovernmental revenue is the other significant revenue category in other revenues and totals $3,103,521.
These revenue sources include state shared revenues such as cigarette tax, liquor tax, and revenue sharing.
In addition, this category also includes the City's portion of the countywide Hotel/Motel Tax.
• Charges for service includes a variety of land use planning and permit fees, library fines, and other
miscellaneous types of fees and charges - $5,402,574.
Governmental Activities Fiscal Year 2008
Revenues by Source
$28,163,419
Taxes,
$13,684,833 Interest,
49% $1,503,619
5%
Other,
$6,833,222
24°I°
Operating
Grants and
Contribution Charges for
$739,171 Service,
3% $5,402,574
27%
21
Business-type Activities
Charges for services represent 89 percent of total revenues and are composed of fees that are charged to all users for
services provided such as water, sanitary sewer, and storm water. The sanitary and storm water fees are established
by Clean Water Services (CWS) and are set by the agency each year. The City Council, through an
intergovernmental agreement with other water system participants, sets the water rates.
The City is continuing to pursue efforts to secure a long-term water source to meet future demands over the next 50
years. In August 2008 the City entered into an intergovernmental agreement with the City of Lake Oswego in which
the City of Tigard will share the cost of upgrading and expanding Lake Oswego's water treatment plant in return for
a long-term water contract. Over the past seven years, the City Council has approved a yearly 6 percent water rate
adjustment in anticipation of having to issue revenue bonds to finance capital projects associated with these
potential water sources.
Sanitary rates have been traditionally adjusted by CWS annually with the increase in revenues being dedicated to
debt service requirements for treatment plant expansions made by agency.
Storm water rates have not been adjusted for several years.
Expenses
Governmental Activities
Expenses related to governmental activities are shown in the chart below and are expressed as a percent of total
expenses for all governmental activities.
The majority of the expenses (54 percent) relate to the City Library and Police Department within the Community
services activity.
Overall, expenses in Governmental activities increased by $2.4 million over the previous fiscal year. The majority of
this increase can be attributed to increases in salaries and benefits.
Expenses by 5erviceTy-D e Fiscal Year 20) 8
Gowmmeatal A ctivites
$25,586,599
Interest on lcng
Palic7 and term debt,
adrnini=traticn, $354,(64
$ 3,992,478
1
cor=m ity
services,
$13,578,913
~
Devaloprn~t 53 0,'o
services, ces,
$5,186,834 Publicworks,
201/o 12,37',710
22
Business-type Activities
The majority of the expenses (66 percent) relate to the drinking water service provider activity. The City does not
have its own water source, so it has to purchase water from other agencies. This water purchase expense is a major
portion of the total water expenses. The water expense decreased slightly over last year due to a decreases in wages
and benefits and material costs.
Both the sanitary and storm water expenses increased only slightly from the previous fiscal year. Neither of these
activities have experienced major growth or expansion of their respective systems, so expenses continue to increase
only moderately due to increases in personal costs and material costs such as fuel.
Expenses by Service Type Fiscal Year 2008
Busin es s-typ e A ctivites
$10,136,910
Sewer
$1,454,150 Stormwater,
14% $1,391,158
14%
Water
$ 7,291,602
72%
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of the City's net resources available for spending at the end
of the fiscal year.
As of the end of the fiscal year 2008, the City's governmental funds reported combined ending fund balances of
$25.3 million, a decrease of $1.2 million in comparison with the prior year. The full amount of governmental fund
balance is reported as unreserved and undesignated.
General Fund
The General Fund is the chief operating fund of the City. At the end of the fiscal year 2008, the unreserved fund
balance was $10.8 million that can be used for funding of City programs. This was an increase of $.9 million. This
increase can be primarily attributed to the combined increased revenues from franchise fees, property taxes, and
charges for service.
Gas Tax Fund
This fund records shared revenues from State and County taxes on sale and use of motor vehicle fuel. Funds are
used for construction, reconstruction, improvement, repair, maintenance, operation, and use of public highways,
roads, streets, and roadside rest areas. This revenue source can also be used for street lighting and cleaning, storm
23
drainage, traffic control devices, and cost of administration. At the end of fiscal year 2008, the fund balance was
$2.8 million, an increase of $0.2 million. This fund balance will eventually be used to complete capital projects.
Bancroft Debt Service Fund
The Bancroft Debt Service Fund accounts for the payment of Bancroft improvement bond principal and interest.
The sources of revenue is the collection of assessments against benefited property, interest, and contributions from
other funds for their share of costs. Revenues may only be used for the retirement of debt. At the end of fiscal yar
2008, the fund balance was $1.0 million, an increase of $0.1 million.
Parks Capital Fund
The Parks Capital Fund accounts for the purchase and major development of recreational facilities within the City.
Resources for this fund are primarily transfers in from other funds and intergovernmental revenues. At the end of
fiscal year 2008, the fund balance was $0.2 million, a decrease of $0.3 million.
Proprietary Funds
The City's proprietary funds include the Sanitary Sewer, Storm Sewer, Water, and Internal Services Funds.
The unrestricted net assets of the business-type activities which include the Sanitary Sewer, Storm Sewer, and Water
Funds at the end of the year amounted to $15.8 million. The total increase in net assets for these funds was $1.9
million.
The factors concerning the finances of the funds have already been addressed in the discussion of the City's
business-type activities.
General Fund Budgetary Highlights
The City Council approved six budget amendments to the adopted General Fund budget. Total increase in
appropriations was $425,223. The changes are summarized as follows:
• Increase of $314,279 in the Police Department to implement a Commercial Crime Unit.
• Increase of $90,620 in the Police Department to assist in enforcing a regional illegal disposal ordinance.
• Increase of $1,059 in Community Services to provide insurance for a local parade.
• $5,000 increase in the budget for Community Services to assist Washington County in applying for a federal
grant to end homelessness in the County.
• $14,265 increase in the budget for Mayor and Council to pay for a special councilmember election due to a
resignation in April 2007.
The overall change to the budget in the General Fund after these six amendments was less than one percent and had
no significant affect on future services or liquidity.
The City budgeted the General Fund with the anticipation that ending fund balance would decrease by
approximately $3.6 million. Actual results increased fund balance by about $900 thousand. This $4 milliion
difference was caused by higher revenues of nearly $2 million and decreased expenditures of approximately $2
million.
For revenues, intergovernmental revenues were $941 thousand higher than budget due to reimbursements for
services provided to other local governments. The rest of the variance was primarily due to a conservative approach
to the budget.
For expenditures, Community Services expended $748 thousand less than budget due to Police spending
approximately $442 thousand less than budget and Library spending $305 thousand less than budget. The rest of
24
the variance was primarily due to a conservative approach to the budget and about $575 thousand of contingency
that was budgeted but not needed.
Capital Asset and Debt Administration
Capital Assets
Governmental Activities
The City's investment in capital assets for its governmental activities as of June 30, 2008, amounts to $189.2 million
(net of accumulated depreciation). This investment in capital assets primarily includes land, buildings, machinery
and equipment, office equipment, and infrastructure. The infrastructure includes roads, curbs and sidewalks,
signage, streetlights and right-of-ways. The total increase in the City's investment in governmental activities capital
assets was $3.5 million or 1.9 percent. This was primarily due to land purchases and additions to infrastructure
throughout the City.
Business-type Activities
The City's investment in capital assets for its business-type activities as of June 30, 2008, amounts to $68.4 million
(net of accumulated depreciation). In addition to machinery, equipment, and vehicles, the capital assets include the
sanitary sewer collection system, storm drainage, and water systems. Total increase in the City's investment in
business-type activities capital assets was $4.4 million or 6.88 percent. This is primarily due to further expansion of
the City's water reservoir system.
City of Tigard, Oregon
Capital Assets at Year-end
(Net of Depreciation)
(in million s)
Governmental Business-type
Activities Activities Total
FY 07-08 FY 06-07 FY 06-07 FY 06-07 FY 06-07 FY 06-07
Land $ 7.6 $ 6.2 $ 4.4 $ 4.4 $ 12.0 $ 10.6
Construction in progress 2.6 1.8 6.2 1.2 8.8 3.0
Buildings and building improvements 17.2 15.8 1.2 0.6 18.4 16.4
Land improvements 1.7 0.7 - - 1.7 0.7
Sewer system - - 16.0 15.8 16.0 15.8
Storm drainage system - - 10.9 11.1 10.9 11.1
Water system - - 28.6 29.8 28.6 29.8
M ach ine ry an d e quip ment 0.7 0.5 0.7 0.6 1.4 1.1
Autos and trucks 0.8 0.9 0.4 0.5 1.2 1.4
Infrastructure 158.6 159.8 - - 158.6 159.8
Total capital assets $ 189.2 $ 185.7 776 8-4 7764_0 777-67
257.6 $ 249.7
Additional information on the City's capital assets can be found in the notes on pages 55-57 of this report.
Debt Outstanding
As of year-end, the City had three types of debt currently outstanding, which are all governmental. They include
general obligation bonds ($10.5 million) secured by the City's authority to levy property taxes, and assessment bonds
($1.3 million) secured by installment payment contracts with property owners. The third is a loan ($1.0 million)
25
through the Oregon Economic and Community Development Department (OECDD). This loan was secured by
current and future park system development charges collected by the City.
The most recent bond rating occurred in 1993 and the rating given by Moody's was Al. Existing debt levels have
no direct impact on current or future City operations.
The State of Oregon limits the amount of general obligation debt that cities can issue to 3 percent of the real market
value of all taxable property within the City Emits. The City's total outstanding general obligation debt is
significantly below the 3 percent limit of $244.9 million.
Additional information on the City's debt can be found on pages 57-59 of this report.
City of Tigard, Oregon
Outstanding Debt at Fiscal Year-end
(in millions)
Total
Totals Percentage
FY 07-08 FY 06-07 Change
Governmental:
General obligation $ 10.5 $ 11.1 -5.4%
Local improvement 1.3 1.4 -7.1%
Long- term note 1.0 1.2 -16.7%
Total outstanding debt $ 12.8 $ 13.7 -6.6%
Economic Factors
The unemployment rate for the Portland metro area was 5.2 percent at the end of the fiscal year, June 30, 2008.
This is a increase from the same period last year, when the rate was 4.8 percent. While the rate is increasing, it is still
below the national average of 5.5 percent for June 2008, though it is above the June 2007 rate of 4.6 percent.
The City of Tigard issues licenses for businesses operating within the City Emits. As of June 30, 2008, there were
3,455 businesses licensed in the City. The U.S. Economic Census, which takes place every five years, provides data
on industry sales within the City. Wholesale trade is generating the most dollars in shipments, sales, and receipts.
Retail trade employed the most people, and also ranks second in the amount of dollars generated.
Almost 70 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. At the end of 2007, less than 10 percent of land within the City was considered buildable. Single
family home construction, which includes free standing and attached, hit a high of 335 units in 1995 and dipped to a
low of 94 in 2008.
Construction declined significantly in 2008. Residential construction valuation dropped from about $64.6 million in
2006-07 to $31.1 million in 2007-08. Total housing units added in the City during 2007-08 totaled 94, down from
221 in 2006-07.
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.
26
The comprehensive long-term financial forecast continues to be central to Tigard's financial management strategy.
By forecasting and anticipating financial trends, Tigard can develop strategies to respond to these emerging financial
trends.
The current forecast shows that in the short-term the City's financial condition is stable in most funds. The FY
2007-08 budget continued addressing a projected General Fund deficit that had been forecasted to occur earlier than
what is now projected. By including a utility franchise fee, the City can delay the deficit by one year. This revenue
source would continue to create a more stable financial condition over time, although more substantive options
might need to be considered in the future. More adjustments were made to the forecast model during with the FY
2008-09 budget taking into account the City never spends 100% of its appropriations. Also there are forecasted
positions (FTE's) which may not be needed to maintain the level of service proposed in the forecast. The City will
carefully weigh the long-term effect these options may have before approving them.
The City will also need to establish sound financing for the capital improvement program that is needed in order to
maintain and improve the City's infrastructure. A Downtown Revitalization Plan was adopted by the City Council
and recommended the creation of an Urban Renewal District. The creation of the district and use of tax increment
financing was approved by the voters in May 2006. The City will still need to fund some catalyst projects that are
identified in the Plan and financing of these projects will need to come from other sources. The voters in
Washington County and the City of Tigard just recently approved an operational tax levy throughout the County
that will help in sustaining the operation of the City's library.
Requests for Information
This financial report is designed to provide a general overview of the City of Tigard's finances for all those with an
interest in the City's finances. Questions concerning any of the information provided in the report or requests for
additional financial information should be addressed to the Financial and Information Services Director, City of
Tigard, 13125 SW Hall Blvd., Tigard, Oregon 97223.
27
~ ~
~o
BASIC FINANCIAL STATEMENTS
29
11
i
1
31
CITY OF TIGARD, OREGON
STATEMENT OF NET ASSETS
June 30, 2008
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 29,070,326 $ 18,957,178 $ 48,027,504
Accounts receivable 1,514,929 2,679,492 4,194,421
Property taxes receivable 411,756 - 411,756
Assessment liens receivable 1,526,036 - 1,526,036
Inventory 58,008 6,079 64,087
Capital assets:
Land and construction in process 10,220,993 10,597,300 20,818,293
Other capital assets (net of accumulated depreciation) 178,996,416 57,800,909 236,797,325
Total Assets 221,798,464 90,040,958 311,839,422
LIABILITIES
Accounts payable and accrued liabilities 2,034,912 1,960,048 3,994,960
Customer deposits 2,650,494 44,784 2,695,278
Due to (from) other activities 161,447 (161,447) -
Accrued interest payable 272,758 - 272,758
Deferred revenue - 7,666 7,666
Noncurrent liabilities:
Due within one year:
Notes payable 235,690 - 235,690
Bonds payable 536,063 - 536,063
Accrued compensated absences 817,485 136,131 953,616
Special assessment bonded debt
with government commitment 120,491 - 120,491
Due in more than one year:
Notes payable 777,296 - 777,296
Bonds payable 10,011,895 - 10,011,895
Accrued compensated absences 296,521 45,377 341,898
Special assessment bonded debt
with government commitment 1,180,739 - 1,180,739
Total Liabilities 19,095,791 2,032,559 21,128,350
NET ASSETS
Invested in capital assets, net of related debt 177,656,465 68,398,209 246,054,674
Restricted for:
Capital projects 682,960 3,783,324 4,466,284
Debt service 1,309,774 - 1,309,774
Unrestricted 23,053,474 15,826,866 38,880,340
Total Net Assets $ 202,702,673 $ 88,008,399 $ 290,711,072
32
The accompanying notes are an integral part of the basic financial statements.
CITY OF TIGARD, OREGON
STATEMENT OF ACTIVITIES
For the fiscal year ended June 30, 2008
Program Revenues
Charges Operating Capital
for Grants and Grants and
Functions /Programs Expenses Services Contributions Contributions
Governmental activities:
Community services y6 13,678,913 $ 168,232 542,441 y$
Public works 2,373,710 1,377,855 46,730
Development services 5,186,834 2,331,834 150,000 3,103,521
Policy and administration 3,992,478 1,524,653 - -
Interest on long-term debt 354,664 - - -
Total governmental activities 25,586,599 5,402,574 739,171 3,103,521
Business-type activities:
Sewer 1,963,223 2,322,462 136,331
Storm water 1,585,105 1,593,097 -
Water 6,792,833 7,002,872 - -
Total business-type activities 10,341,161 10,918,431 - 136,331
Total $ 35,927,760 16,321,005 739,171 3,239,852
General Revenues:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Franchise taxes
Unrestricted intergovernmental revenues
Interest earnings
Miscellaneous
Total general revenues
Change in net assets
Net assets--beginning
Net assets--ending
The accompanying notes are an integral part of the basic financial statements.
33
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Governmental Business-type
Activities Activities Total
$ (12,968,240) $ - $ (12,968,240)
(949,125) - (949,125)
398,521 - 398,521
(2,467,825) - (2,467,825)
(354,664) - (354,664)
(16,341,333) - (16,341,333)
- 495,570 495,570
- 7,992 7,992
- 210,039 210,039
- 713,601 713,601
(16,341,333) 713,601 (15,627,732)
8,310,146 - 8,310,146
823,518 - 823,518
4,551,169 - 4,551,169
2,912,647 - 21912,647
1,503,619 1,039,593 2,543,212
817,054 150,015 967,069
18,918,153 1,189,608 20,107,761
2,576,820 1,903,209 4,480,029
200,125,853 86,105,190 286,231,043
202,702,673 $ 88,008,399 $ 290,711,072
34
CITY OF TIGARD, OREGON
GOVERNMENTAL FUNDS
BALANCE SHEET
June 30, 2008
Bancroft Parks Other Total
General Gas Tax Debt Service Capital Governmental Governmental
Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 11,058,374 $ 3,397,449 1,013,769 1,635,159 10,660,460 $ 27,765,211
Accounts receivable 1,043,473 175,726 - - 290,326 1,509,525
Property taxes receivable 390,963 - - - 20,793 411,756
Assessment liens receivable - - 1,264,745 209,569 51,722 1,526,036
Total assets 12,492,810 3,573,175 $ 2,278,514 1,844,728 11,023,301 5 31,212,528
LIABILITIES
Accounts payable and accrued liabilities $ 1,032,826 100,354 800 20,484 $ 309,967 $ 1,464,431
Customer deposits 379,435 667,136 - 1,389,497 214,426 2,650,494
Deferred revenues:
Property taxes 286,492 - - - 16,878 303,370
Assessment liens - - 1,264,745 209,569 51,722 1,526,036
Total liabilities 1,698,753 767,490 1,265,545 1,619,550 592,993 5,944,331
FUND BALANCES
Unreserved, undesignated, reported in:
General Fund 10,794,057 - - - - 10,794,057
Special revenue funds - 2,805,685 - 9,675,721 12,481,406
Capital projects funds - - - 225,178 457,782 682,960
Debt service funds - - 1,012,969 - 296,805 1,309,774
Total fund balances 10,794,057 2,805,685 1,012,969 225,178 10,430,308 25,268,197
Total liabilities and fund balances 12,492,810 $ 3,573,175 2,278,514 1,844,728 11,023,301
Amounts reported for governmental activities in the Statement
of Net Assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds, net
of accumulated depreciation of $56,089,769 189,217,409
Other long-term assets are not available to pay for current-period
expenditures and, therefore are deferred in the funds:
Assessment liens 1,526,036
Property taxes earned but not available 303,370
Internal service funds are used by management to charge the
cost of administrative functions as well as fleet and property
management to individual funds. A portion of the assets and
liabilities of the internal service funds are included in
governmental activities in the statement of activities. 636,599
Accrued compensated absences are not due and pavable in the
current period and therefore are not reported in the funds. (1,114,006)
Long-term liabilities - not reported in the funds:
Bonds, notes payable and other liabilities, not due and
payable in current period (12,862,174)
Accrued interest payable, not due and payable in the current period (272,758)
Net Assets of Governmental Activities 202,702,673
The accompanying notes are an integral part of the basic financial statements.
35
CITY OF TIGARD, OREGON
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For the fiscal year ended June 30, 2008
Bancroft Parks Other Total
General Gas Tax Debt Service Capital Governmental Governmental
Fund Fund Fund Fund Funds Funds
REVENUES
Taxes 11,096,523 1,041,454 $ 12,137,977
Franchise fees 4,551,169 - 4,551,169
Special assessments - 120,678 - 120,678
Licenses and permits 674,422 - 1,197,419 1,871,841
Intergovernmental revenues 5,250,929 2,406,738 150,000 - 7,807,667
Charges for service 756,253 4,922 - - 2,708,183 3,469,358
Fines and forfeitures 847,069 - - - - 847,069
Interest earnings 530,391 153,754 147,892 81,228 562,543 1,475,808
Miscellaneous 20,098 30,535 - 525,146 171,753 747,532
Total revenues 23,726,854 2,595,949 268,570 756,374 5,681,352 33,029,099
EXPENDITURES
Current operating:
Community services 13,801,110 - - - - 13,801,110
Public works 2,757,289 - - - - 21757,289
Development services 3,128,507 530,473 - - 1,532,817 5,191,797
Policy and administration 397,510 - - - - 397,510
Debt service:
Principal - 43,800 229,201 649,906 922,907
Interest - 80,424 51,072 322,907 454,403
Capital outlay - 378,186 - 21235,142 3,705,764 6,319,092
Total expenditures 20,084,416 908,659 124,224 2,515,415 6,211,394 29,844,108
Excess (deficiency) of revenues
over (under) expenditures 3,642,438 1,687,290 144,346 (1,759,041) (530,042) 3,184,991
OTHER FINANCING SOURCES (USES)
Transfers in 2,617,862 - - 1,858,420 419,845 4,896,127
Transfers out (5,392,264) (1,434,231) - (422,620) (2,050,376) (9,299,491)
Total other financing sources (uses) (2,774,402) (1,434,231) - 1,435,800 (1,630,531) (4,403,364)
Net change in fund balances 868,036 253,059 144,346 (323,241) (2,160,573) (1,218,373)
Fund balances - beginning 9,926,021 2,552,626 868,623 548,419 12,590,881 26,486,570
Fund balances - ending 10,794,057 9$ 2,805,685 1,012,969 225,178 10,430,308 $ 25,268,197
The accompanying notes are an integrat part of the basic financial statements.
36
CITY OF TIGARD, OREGON
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the fiscal year ended June 30, 2008
Net change in fund balances-total governmental funds S (1,218,373)
Amounts reported for governmental activities in the
Statement of Activities are different because:
Governmental funds report capital outlays as expenditures
while governmental activities report depreciation expense to
allocate those expenditures over the life of the assets. This is
the amount by which capital outlay exceeded depreciation
in the current period.
Expenditures for capital assets 7,412,323
Less current year depreciation (4,124,966) 3,287,357
Revenues in the Statement of Activities that do not
provide current financial resources are not reported
as revenues in the funds.
Property taxes 99,208
Assessment liens (184,953) (85,745)
Repayment of bond principal is an expenditure in the
governmental funds, but the repayment reduces long-term
liabilities in the Statement of Net Assets.
by which proceeds exceeded repayments.
Principal payments 863,806
Some expenses reported in the Statement of Activities
do not require the use of current financial resources
and therefore are not reported as expenditures in
governmental funds.
Compensated absences (42,489)
Accrued interest on debt 99,739 57,250
Internal service funds are used by management to charge the
cost of adm nistrative functions as well as fleet and property
management to individual funds. The net revenue of a portion
of internal service funds is reported with governmental activities.
Change in Net Assets - Internal Service Funds (436,633)
Less amount attributable to Business-Type Activities 109,158 (327,475)
Change in Net Assets of Governmental Activities S 2,576,820
The accompanying notes are an integral part of the basic financial statements.
37
CITY OF TIGARD, OREGON
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
June 30, 2008
Business-type Activities Governmental
Enterprise Funds Activities
Internal
Sanitary Storm Service
Sewer Sewer Water Totals Funds
ASSETS
Current assets:
Cash and investments S 8,795,293 $ 2,764,748 5 7,397,137 S 18,957,178 $ 1,305,115
Accounts receivable 1,208,284 280,465 1,190,743 2,679,492 5,404
Inventory - - 6,079 6,079 58,008
Total current assets 10,003,577 3,045,213 8,593,959 21,642,749 1,368,527
Noncurrent assets:
Capital assets:
Land and construction in process 23,343 156,692 10,777,934 10,957,969 -
Other capital assets (net of accumulated depreciation) 16,436,706 11,104,505 29,899,029 57,440,240 -
Total noncurrent assets 16,460,049 11,261,197 41,676,963 68,398,209 -
Total assets 26,463,626 14,306,410 49,270,922 90,040,958 1,368,527
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 893,699 73,398 992,951 1,960,048 570,481
Customer deposits - 6,872 37,912 44,784 -
Deferred revenue 7,666 - - 7,666 -
Accrued compensated absences 28,829 21,512 85,790 136,131 114,194
Total current liabilities 930,194 101,782 1,116,653 2,148,629 684,675
Noncurrent liabilities:
Accrued compensated absences 9,610 7;171 28,597 45,377 38,065
Total liabilities 939,803 108,953 1,145,250 2,194,006 722,740
NET ASSETS
Invested in capital assets 16,460,049 11,261,197 40,676,963 68,398,209 -
Restricted for capital projects 3,783,324 - - 3,783,324 -
Unrestricted 5,280,450 2,936,260 7,448,709 15,665,419 645,787
Total net assets S 25,523,823 S 14,197,457 S 48,125,672 87,846,952 $ 645,787
Adjustment to reflect the consolidation ofinternal service fund activities related to enterprise funds. 161,447
Net assets of business-type activities S 88,008,399
The accompanying notes are an integral part of the basic financial statements.
38
CITY OF TIGARD, OREGON
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
For the fiscal year ended June 30, 2008
Business-type Activities Governmental
Enterprise Funds Activities
Internal
Sanitary Storm Service
Sewer Sewer Water Totals Funds
OPERATING REVENUES
Service charges $ 2,322,462 1,593,097 $ 7,112,030 11,027,589 S 6,913,802
Miscellaneous - 15,725 134,290 150,015 47,732
Total operating revenues 2,322,462 1,608,822 7,246,320 11,177,604 6,961,534
OPERATING EXPENSES
Salaries and wages 380,704 480,711 1,234,660 2,096,075 3,506,440
Contracted services 7,508 265,233 2,355,327 2,628,068 950,246
General, administrative and other 305,211 40,202 381,521 726,934 2,969,292
Depreciation 650,552 415,616 1,346,933 2,413,101 -
Services performed by other funds 619,248 383,343 1,474,392 2,476,983 -
Total operating expenses 1,963,223 1,585,105 6,792,833 10,341,161 7,425,978
Operating income (loss) 359,239 23,717 453,487 836,443 (464,444)
NONOPERATING REVENUES
Investment revenue 424,081 126,645 488,867 1,039,593 27,811
System development revenue 136,331 - - 136,331 -
Total nonoperating revenue 560,412 126,645 488,867 1,175,924 27,811
Change in net assets 919,651 150,362 942,354 2,012,367 (436,633)
Net assets--beginning 24,604,172 14,047,095 47,183,318 1,082,420
Net assets--ending $ 25,523,823 S 14,197,457 48,125,672 645,787
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (109,158)
Change in net assets of business-type activities 1,903,209
The accompanying notcs arc an inmgral part of the basic financial statunents.
39
CITY OF TIGARD, OREGON
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
For the fiscal year ended June 30, 2008
Governmental
Business-type Activities - Enterprise Funds Activities
Sanitary Storm Internal
Sewer Sewer Water Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts- from customers 2,292,256 1,528,094 7,014,324 $ 10,834,674 $ 6,920,997
Payments to suppliers (807,006) (316,186) (2,484,572) (3,607,764) (3,596,125)
Payments to employees- (374,830) (467,200) (1,225,539) (2,067,569) (3,502,145)
Other receipts- - 15,725 134,290 1511,015 47,998
Internal activity-payments to other funds- (619,248) (383,343) (1,474,392) (2,476,983) -
Net cash provided (used) by operating activities 491,172 377,090 1,964,111 2,832,373 (129,275)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
System development revenue 136,331 - - 136,331 -
Acquisition of capital assets (800,027) (272,709) (5,737,750) (6,810,486) -
Net cash (used) by capital and related
financing activities (663,696) (272,709) (5,737,750) (6,674,155) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 424,081 126,645 488,867 1,039,593 27,809
Net increase (decrease) in cash and cash equivalents 251,557 231,026 (3,284,772) (2,802,189) (101,466)
Cash and investments-beginning of the year 8,543,736 2,533,722 10,681,909 21,759,367 1,406,844
Cash and investments-end of the year $ 8,795,293 $ 2,764,748 $ 7,397,137 $ 18,957,178 $ 1,305,378
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss) $ 359,239 $ 23,717 $ 453,487 $ 836,443 $ (464,444)
Adjustments to reconcile operating income to net cash
provided by operating activities-:
Cash flows- reported in other categories:
Depredation expense 650552 415,616 1,346,933 2,413,101 -
Change in assets and liabilities:
Receivables (30,206) (49,278) 49,563 (29,921) 7,195
Prepaid expenses - - 127,000 127,000 -
Invenron - - 63,400 63,400 3,511
Accounts parable and accmed liabilities- (494,287) (20,849) 61,876 (453,260) 319,902
Accrued compensated absences 5,874 5,628 9,121 20,623 4,295
Customer deposits - 2,256 (147,269) (145,013) -
Net cash provided (used) by operating activities $ 491,172 $ 377,090 $ 1,964,111 2,832,373 $ (129,541)
The accompanying notes are an integral part of the basic financial statements.
40
CITY OF TIGARD, OREGON
STATEMENT OF PLAN NET ASSETS
PENSION TRUST FUND
June 30, 2008
Assets
Cash and cash equivalents $ 4,207,505
Corporate bonds 302,631
Corporate stocks 9,496,867
Total assets 14,007,003
Net assets held in trust for pension benefits $ 14,007,003
STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUND
For the fiscal year ended June 30, 2008
Additions:
Contributions - employer $ 1,597,169
Contributions - employee 4,074
Investment income (883,754)
Total additions 717,489
Deductions:
Benefit payments and withdrawals (1,727,082)
Decrease in net assets (1,009,593)
Net assets held in trust for pension benefits
Beginning of year 15,016,596
End of year $ 14,007,003
The accompanying notes are an integral part of the basic financial statements.
41
Notes to Basic Financial Statements
42
A
43
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies:
The City of Tigard, under its Charter of 1961, is governed by an elected mayor and four
council members who comprise the City Council. The City Council appoints a City
Manager, who acts as the administrative head of government for the City.
In accordance with GASB Statement No. 14, The Financial Reporting Entity, the activities
of the Tigard Urban Renewal Agency (the Agency) are included in the City's financial
statements as a blended component unit. The Agency is a legally separate entity, which is
governed by a board comprised of the City Council, as stipulated in the bylaws. The Council
has the ability to impose its will on the Agency as determined on the basis of budget
adoption, taxing authority, and funding. The purpose of the Agency is to undertake urban
renewal projects and activities pursuant to the City's downtown redevelopment plan. The
financial results of the Agency are reported herein as a debt service fund and a capital
projects fund. The Agency also prepares a separate component unit financial report that
may be obtained from the Agency's administrative offices at 13125 SW Hall Blvd., Tigard,
Oregon 97223.
The financial statements of the City have been prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP). GAAP statements
include all relevant GASB pronouncements. For purposes of the government-wide and
proprietary fund financial statements, the City has elected not to apply private-sector
standards of accounting and financial reporting issued after November 30, 1989, unless
specifically adopted by GASB pronouncements. The City applies the provisions of all
applicable GASB Statements that define requirements and the reporting model for the
annual financial reports of state and local governments. The City has recorded capital and
certain other long-term assets and liabilities in the statement of net assets, reported all
revenues and the cost of providing services under the accrual basis of accounting in the
statement of activities, and uses the direct method of reporting cash flows.
Basic Financial Statements
Basic financial statements are presented at both the government-wide and fund financial
level. Both levels of statements categorize activities as either governmental or business-type.
Governmental activities, which are normally supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
Government-wide financial statements display information about the City as a whole. For
the most part, the effect of interfund activity has been removed from these statements.
These statements focus on the sustainability of the City as an entity and the change in
aggregate financial position resulting from the activities of the fiscal year. These aggregated
statements consist of the Statement of Net Assets and the Statement of Activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include 1) charges
to customers or applicants who purchase, use, or directly benefit from goods, services or
44
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, Continued:
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Indirect expenses are recovered through internal service fund charges. These
indirect expenses are allocated based on a full-cost approach, thereby allocating indirect
expenses among functions with the objective of allocating all expenses. Taxes and other
items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
the pension trust fund, even though the pension trust fund is excluded from the
government-wide financial statements. Major individual governmental funds and major
individual enterprise funds are reported as separate columns in the fund financial statements.
Fund financial statements display information at the individual fund level. Each fund is
considered to be a separate accounting entity. Funds are classified and summarized as
governmental, proprietary, or fiduciary.
Currently, the City has governmental, proprietary, and fiduciary fund types. Non-major
funds are combined into a single column in the basic financial statements and are detailed in
the supplemental information.
Basis of Presentation
The financial transactions of the City are recorded in individual funds. Each fund is
accounted for by providing a separate set of self-balancing accounts that comprises its assets,
liabilities, fund equity, revenues and expenditures/ expenses.
Professional standards set forth minimum criteria (percentage of the assets liabilities,
revenues or expenditures/ expenses or either fund category or the governmental and
enterprise combined) for the determination of major funds. The City electively added funds
as major funds, which either had debt outstanding or specific community focus. Non-major
funds are combined in a column in the fund financial statements and detailed elsewhere in
the financial report.
Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. Basis of accounting refers to when transactions are recorded
regardless of the measurement focus.
The government-wide, proprietary fund, and fiduciary fund financial statements are
presented on a full accrual basis of accounting with an economic resource measurement
focus. An economic resource focus concentrates on an entity or fund's net assets. All
transactions and events that affect the total economic resources (net assets) during the
period are reported. An economic resources measurement focus is inextricably connected
with full accrual accounting. Under the full accrual basis of accounting, revenues are
45
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, Continued:
recorded when earned and expenses are recorded at the time liabilities are incurred,
regardless of the timing of related cash inflows and outflows.
Governmental funds financial statements are presented on a modified accrual basis of
accounting with a current financial resource measurement focus. This measurement focus
concentrates on the fund's resources available for spending currently or in the near future.
Only transactions and events affecting the fund's current financial resources during the
period are reported.
Similar to the connection between an economic resource measurement focus and full accrual
accounting, a current financial resource measurement focus is inseparable from a modified
accrual basis of accounting. Under modified accrual accounting, revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the City considers revenues to be available
if they are collected within 60 days of the end of the current fiscal year. Expenditures
generally are recorded when a liability is incurred, as under accrual accounting. Property
taxes, intergovernmental and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the
current fiscal period. Only the portion of special assessments receivable due within the
current fiscal period is considered susceptible to accrual as revenue of the current period.
All other revenues are considered to be measurable and available only when cash is received
by the City.
A deferred revenue liability arises in the governmental funds balance sheet when potential
revenue does not meet both the measurable and available criteria for recognition in the
current year. This unavailable deferred revenue consists primarily of uncollected property
taxes and assessments not deemed available to finance operation of the current period. In
the government-wide Statement of Activities, with a full accrual basis of accounting,
revenue must be recognized as soon as it is earned regardless of its availability.
Thus, the liability created on the governmental fund balance sheet for unavailable deferred
revenue is eliminated. Note that deferred revenues also arise outside the scope of
measurement focus and basis of accounting, such as when the City receives resources before
it has a legal claim to them. For instance, when grant monies are received prior to the
incurrence of qualifying expenditures.
Similar to the way revenues are recorded, governmental funds only record those
expenditures that affect current financial resources. Principal and interest on general long-
term debt is recorded as a fund liability only when due, or to the extent that it is expected to
be liquidated with expendable financial resources. However in the government-wide
financial statements with full accrual basis of accounting, all expenditures affecting the
economic resource status of the government must be recognized. Thus, the expense and
related accrued liability for long-term portions of debt and compensated absences must be
included.
46
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, Continued:
Since the governmental fund statements are presented on a different measurement focus and
basis of accounting than the government-wide statements' governmental column, a
reconciliation is necessary to explain the adjustments needed to transform the fund based
financial statements into the governmental column of the government-wide presentation.
This reconciliation is part of the basic financial statements.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services, and producing
and delivering goods in connection with a proprietary fund's principal ongoing operations.
The principal operating revenues of the City's Sanitary Sewer, Storm Sewer and Water Funds
are charges to customers for sales and services. The Sanitary Sewer, Storm Sewer and Water
Funds also recognize fees intended to recover the cost of connecting new customers to the
City's utility systems as operating revenues. Operating expenses for enterprise funds include
the cost of sales and services, administrative expenses and overheads, and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as non-
operating revenues and expenses.
The fiduciary fund accounts for the resources held by the City in a custodial capacity, on
behalf of the employees of the City.
When both restricted and unrestricted resources are available for use, it is the City's policy to
use restricted resources first, then unrestricted resources as they are needed.
Assets, Liabilities, and Equity
Receivables and Payables
Property taxes are levied and become alien on July 1. Collection dates are Novemberl5,
February 15, and May 15 following the lien date. Discounts are allowed if the amount due is
received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are
considered delinquent.
Inventories
Inventories of parts, materials and supplies are stated at cost on the first-in, first-out basis in
the proprietary funds. The purchases method is used in accounting for inventory for all
funds on the budgetary basis. The consumption method is used for the government-wide
presentation as well as the proprietary funds and business-type activities.
47
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, Continued:
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
pathways, street lights, etc.) are reported in the applicable governmental or business type
activities columns in the government-wide financial statements.
Capital assets are charged to expenditures as purchased or constructed in the governmental
fund statements, and capitalized in the proprietary fund statements. Capital assets are
recorded at historical cost or estimated historical cost. Donated assets are recorded at
estimated fair market value as of the date of the donation.
Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or
more, and an estimated useful life of greater than one year. Additions or improvements and
other capital outlays that significantly extend the useful life of an asset, or that significantly
increase the capacity of an asset are capitalized. Other costs for repairs and maintenance are
expensed as incurred.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of
Activities with accumulated depreciation reflected in the Statement of Net Assets and is
provided on the straight-line basis over the following estimated useful lives:
Asset Years
Buildings and improvements 25-40
Improvements other than buildings 10-20
Machinery and equipment 5-10
Vehicles 5-10
Utility systems 25-40
Infrastructure 20-40
Accrued Compensated Absences and Sick Pay
It is the City's policy to permit employees to accumulate earned but unused vacation and sick
pay benefits. There is no liability for unpaid accumulated sick leave, since the City does not
have a policy to pay any amounts when employees separate from the City. All vacation pay
is accrued when incurred in the government-wide and proprietary fund financial statements.
A liability for these amounts is reported in the governmental funds only when it has
matured, for example, as result of employee resignations or retirements. At June 30, 2008
there were no governmental fund liabilities for accrued compensated absences.
Interfund Transfers
Interfund transfers are used to pay administrative services, provide funds for debt service,
contribute toward the cost of capital projects, and provide operational resources. Transfers
for fiscal year ended June 30, 2008 are as follows:
48
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, Continued:
Interfund Transfers, Continued:
Transfers
From Other Transfers to
Funds Other Funds
General Fund $ 2,617,862 $ 5,392,264
Gas Tax Fund - 1,434,231
Parks Capital Fund 1,858,420 422,620
Internal Service Funds 4,403,364 -
Nonmajor Governmental Funds 419,845 2,050,376
$ 9,299,491 $ 9,299,491
Long-term Debt
In the government-wide financial statements, and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities, or proprietary
fund type in the Statement of Net Assets. Bond premiums and discounts are deferred and
amortized over the life of the bonds. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs, which are immaterial, are treated as period costs
in the year of issue and are shown as other financing uses.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as debt service expenditures.
Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for
use for a specific purpose. Designations of fund balance represent tentative management
plans that are subject to change. The City currently has no designations of fund balance.
Use of Estimates
In preparing the City's financial statements, management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses /expenditures during the reporting period. Actual results
could differ from those estimates.
49
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, Continued:
Cash and Investments
Investments included in cash and investments are stated at cost, which is approximate to the
fair value. Investments in the pension trust fund are stated at fair value.
For purposes of the statement of cash flows, the City considers the proprietary funds' cash
and investments with initial maturities to the City of three months or less, and the amounts
in the Oregon State Treasurer's Investment Pool, to be cash equivalents.
Budget
A budget is prepared for each fund, except for the Pension Trust Fund, essentially in
accordance with the modified accrual basis of accounting used by governmental funds,
which is in accordance with the legal requirements of Oregon Local Budget Law.
The resolution authorizing appropriations sets the maximum level of expenditures for each
fund. Appropriations may not be legally overexpended. Appropriations lapse at the end of
each fiscal year. Appropriations are made at the major program level for each fund, for
example, Community Services, Public Works, Development Services, Policy and
Administration, General Government, Debt Service, Capital Improvements and
Contingency. The detail budget document is required to contain more detailed information
for the above-mentioned expenditure categories. Budget amounts include original
approved amounts and all subsequent appropriation transfers approved by the City Council.
After budget approval, the City Council may approve supplemental budgeted
appropriations if an occurrence, condition, or need exists which had not been ascertained at
the time the budget was adopted. A supplemental budget may require hearings before the
public, publications in newspapers and approval by the City Council. Original and
supplemental budgets may be modified by the use of appropriations transfers between the
levels of control. Such transfers require approval by the City Council. Management may
not amend the budget without Council approval.
The budgets for each of the funds include capital outlay appropriations.
Debt service is also budgeted separately. For GAAP presentation, the transfers from
operating funds for services provided by the internal service funds and the General Fund
are considered revenues and expenses/ expenditures, as appropriate, but are considered to
be interfund transfers for budgetary purposes.
Excess of Expenditures over Appropriations
The Gas Tax Fund had expenditures in excess of related appropriations. The over
expenditures in the amount of $58,473 were in development services and were all funded
through the available fund balance.
50
City of Tigard, Oregon
Notes to Basic Financial Statements
2. Fund Types:
The City's financial operations are accounted for in the following funds:
Governmental Funds
Governmental funds finance most governmental functions of the City. The acquisition, use
and balances of the City's expendable financial resources and the related liabilities,
excluding those accounted for in proprietary funds, are accounted for through
governmental funds. The measurement focus is upon determination of changes in current
financial resources, rather than upon net income determination. The following are the
City's major governmental funds:
General Fund - This fund accounts for the City's general operations. It is used to
account for all transactions not specifically required to be accounted for in the City's
other funds.
Gas Tax Fund - This fund records shared revenues from the State and County
taxes on the sale and use of motor vehicle fuel. Funds are used for construction,
reconstruction, improvement, repair, maintenance, operation and use of public
highways, roads, streets, and roadside rest areas. Monies may also be used for street
lighting and cleaning, storm drainage, traffic control devices and administration
costs.
Bancroft Debt Service Fund - This fund accounts for the payment of Bancroft
improvement bond principal and interest. The sources of revenue is the collection
of assessments against benefited property, interest and contributions from other
funds for their share of costs.
Parks Capital Fund- This fund accounts for the expenditure of system
development charge monies for major improvements to recreational facilities within
the City.
Proprietary Funds
Proprietary funds are used to account for the acquisition, operation and maintenance of
sewer, storm drainage, and water systems in the City. These funds are entirely or
predominantly self-supported through user charges to customers. The measurement focus
is upon net income determination, rather than upon determination of changes in current
financial resources. The following are the City's major proprietary funds:
Enterprise Funds:
Sanitary Sewer Fund - This fund accounts for the City's sewer utility operations.
51
City of Tigard, Oregon
Notes to Basic Financial Statements
2. Fund Types, Continued:
Storm Sewer Fund - This fund accounts for the City's storm drainage operations
which consists of the following two budgetary funds: Storm Sewer Fund and
Water Quality/ Quantity Fund.
Proprietary Funds, Continued:
Water Fund - This fund accounts for the City's water operations which consists of
the following three budgetary funds: Water Fund, Water SDC Fund and Water
CIP Fund.
Additionally, the City reports the following fund type. Neither of these funds are major
funds:
Internal Service Funds:
Central Services Fund - This fund accounts for the central administrative
functions within the City which are generally allocated to other funds.
Fleet/Property Management Fund - This fund accounts for all activity related to
the Fleet Maintenance and Property Management divisions in the City.
Fiduciary Fund:
Pension Trust Fund - This fund accounts for the City's employee defined
contribution pension plan.
Nonmajor Governmental Funds
Other governmental funds include nonmajor special revenue, debt service, and capital
projects funds of the City. The following lists all other governmental funds by
governmental fund type:
Special Revenue Funds:
Traffic Impact Fee Fund
Electrical Inspection Fund
Underground Utility Fund
Criminal Forfeiture Fund
Insurance Fund
Building Fund
Urban Services Traffic Impact Fee Fund
Urban Services Fund
Street Maintenance Fee Fund
Parks System Development Charge Fund
City Gas Tax Fund
52
City of Tigard, Oregon
Notes to Basic Financial Statements
2. Fund Types, Continued:
Debt Service Funds:
General Obligation Debt Service Fund
Urban Renewal Debt Service Fund
Capital Projects Funds:
Facility Fund
Urban Renewal Capital Projects Fund
3. Cash and Investments:
The City maintains a cash and investment pool that is available for use by all funds, except
the Pension Trust Fund. Each fund type's portion of this pool is displayed on the
combined balance sheet as "cash and investments". The investments of the Pension Trust
Fund are held separately from those of other City funds.
Cash and investments are comprised of the following at June 30, 2008:
Cash on hand $ 9,116
Cash held by Department of Finance, Washington County 47,311
Deposits with financial institutions 8,691,654
Investments 39,279,423
Total cash and investments $ 48,027,504
Deposits
Deposits with financial institutions include bank demand deposits and time deposit
accounts. The total bank balance is $10,295,935 (book balance is $8,691,654). Of these
deposits, $300,000 was covered by federal depository insurance and $9,995,935 was
collateralized in accordance with Oregon statutes.
Custodial credit risk - deposits. In the case of deposits, this is the risk that in the event
of bank failure, the City's deposits may not be returned to it. Oregon Revised Statutes
require the depository institution to maintain on deposit, with a collateral pool manager,
securities having a value not less than 25 percent of the outstanding certificates of collateral
issued by the pool manager. The City's deposits are fully collateralized in accordance with
state law.
53
City of Tigard, Oregon
Notes to Basic Financial Statements
3. Cash and Investments, Continued:
Investments
State statutes authorize the City to invest primarily in general obligations of the U.S.
government and its agencies, certain bonded obligations of Oregon municipalities, bank
repurchase agreements, bankers' acceptances, certain commercial paper and the State of
Oregon Local Government Investment Pool.
Interest rate risk. In accordance with its investment policy, the City manages its exposure
to declines in fair value by limiting the individual maturities in its investment portfolio to
eighteen months or less. The City does have a provision in its investment policy that up to
twenty percent of the portfolio can have maturities from eighteen months to thirty-six
months.
Custodial credit risk - investments. For an investment, this is the risk that, in the event
of failure of the counterparty, the City will not be able to recover the value of its
investments or collateral securities that are in the possession of an outside party. All of the
City's investments, except for the investment in the Local Government Investment Pool,
which is not evidenced by securities, are held in safekeeping by the financial institution
counterparty in the financial institution's general customer account name.
The City participates in the Oregon State Treasurer's Local Government Investment Pool
(LGIP), an open-ended; no-load diversified portfolio created under ORS 294.805 to
294.895 that is not registered with the U.S, Securities and Exchange Commission as an
investment company. The LGIP is administered by the State Treasurer and the Oregon
Investment Council with the advice of the Oregon Short-Term Fund Board. These funds
must be invested and managed, as a prudent investor would, exercising reasonable care, skill
and caution. The Oregon Audits Division of the Secretary of State's Office audits the
LGIP annually.
The City employees participate in a defined contribution pension plan. These funds are
recorded in the City's Pension Trust Fund. The balance at June 30, 2008 is $14,007,003.
This balance is not included in the government-wide or fund financial statements, but is
shown separately on page 40.
54
City of Tigard, Oregon
Notes to Basic Financial Statements
3. Cash and Investments, Continued:
As of June 30, 2008, the City had the following investments:
Percentage of
Investment Tvne Fair Value Cost Portfolio
State Treasurer's Local
Go,wrnment Investment Pool $ 7,389,798 $ 7,389,798 18.81%
Money markets 5,896„535 5,896,535 15.01%
U.S. Government Securities 9,044,250 9,044,250 23.03%
Municipal bonds 98,009 98,009 0.25%
Corporate bonds 16,850,831 16,850,670 42.90%
Total Investments $ 39,279,423 $ 39,279,262 100L00%
Concentration of credit risk. The City's policy for investing in individual issuers varies
depending on the type of investments. Agency securities are restricted to no more than 90
percent of the total portfolio. Municipal bonds are restricted to no more than 25 percent of
the total portfolio. No more the 35 percent of the total portfolio of investments may be
invested in corporate bonds. Investments in corporate bonds of any one issuer may not
exceed 5 percent of the investment portfolio.
Credit risk. The City's policy, which adheres to State of Oregon law, is to limit its
Corporate and Municipal investments to the following: Issuers within Oregon must be
rated "A" (bonds) or A-2 / P-2 (commercial paper) or better by Standard and Poor's,
Moody's Investors Service or any other nationally recognized statistical rating organization.
Issuers not in Oregon must be rated AA / Aa (bonds) or A-1 / P-1 (commercial paper) or
better.
At June 30, 2008, the City's investments were rated as follows:
Highest Rating from
Moody's Investors Service or Standard & Poor's Corporation
Investment Type Total Aaa / AAA Aa / AA Not Rated
LGIP $ 7,389,798 $ - $ - $ 7,389,798
Money markets 5,896,695 - - 5,896,695
US Govn't securities 9,044,250 9,044,250 - -
Municipal bonds 98,009 - 98,009 -
Corporate bonds 16,850,670 3,029,091 13,821,579 -
Total $ 39,279,422 $ 12,073,341 $ 13,919,588 $ 13,286,493
55
City of Tigard, Oregon
Notes to Basic Financial Statements
3. Cash and Investments, Continued:
The City has a formal investment policy that explicitly limits investment maturities as a means of
managing its exposure to fair value loss arising from increasing interest rates. At June 30, 2008,
the concentration of those maturities included the Local Government Investment Pool, Money
Markets, and investments with average maturities of twelve months or less at 56.38% of the
total portfolio. Investments with maturities between twelve and eighteen months made up
29.05% of the portfolio and investments with maturities between eighteen and thirty-six months
were 14.57% of the total portfolio.
4. Assessment Liens Receivable:
Assessment liens receivable represent the uncollected amounts levied against benefited property
for the cost of local improvements. Because the assessments are liens against the benefited
property, an allowance for uncollectible amounts is not deemed necessary. Substantially all
assessments are payable over a period of 10 to 20 years. Assessments bear interest from 5.2 to
9.4 percent. At June 30, 2008, the portion of the assessments receivable balance that represents
delinquent accounts is $2,987.
5. Capital Assets:
Capital asset activity for governmental activities for the year ended June 30, 2008 was as
follows:
56
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Capital Assets, Continued:
Balances Balances
June, 30 Reclassifications June, 30
2007 Additions Adjustments Retirements 2008
Non-depreciable
Land $ 6,227,610 $ 1,371,407 $ 5,000 $ - $ 7,604,017
Construction in progress 1,789,715 4,396,662 (3,569,400) - 2,616,977
Total non-depreciable 8,017,325 5,768,069 (3,564,400) - 10,220,994
Depreciable
Building and improvements 19,009,615 885,223 1,035,750 - 20,930,588
Land improvements 5,387,229 554,201 728,903 - 6,670,333
Machinery and equipment 1,727,841 75,155 23,504 - 1,826,500
Autos and trucks 2,247,396 194,645 - (77,902) 2,364,139
Office equipment 478,029 155,387 - - 633,416
Infrastructure 204,854,127 - 1,776,243 - 206,630,370
Total depreciable 233,704,237 1,864,611 3,564,400 (77,902) 239,055,346
Accumulated depreciation
Building and improvements (3,222,698) (475,152) - - (3,697,850)
Land improvements (4,665,203) (354,095) - - (5,019,298)
Machinery and equipment (1,273,122) (157,138) - - (1,430,260)
Autos and trucks (1,314,568) (310,031) - 77,902 (1,546,697)
Office equipment (418,468) (27,693) - - (446,161)
Infrastructure (45,117,808) (2,800,857) - - (47,918,665)
Total accumulated depreciation (56,011,867) (4,124,966) - 77,902 (60,058,931)
Governmental activities
capital assets, net $ 185,709,695 $ 3,507,714 $ - $ - $ 189,217,409
**Adjustments column include reclassifications and construction in progress in previous years that were completed within
the current fiscal year.
Depreciation expense for governmental activities is charged to functions as follows:
Community services $ 193,873
Public works 86,210
Developmental services 39,037
Policy and administration 3,805,846
Total depreciation for governmental activities $ 4,124,966
Capital assets activity for business-type activities for the year ended June 30, 2008, was as
follows:
57
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Capital Assets, Continued:
Balances Reclassifications Balances
June 30, 2007 Additions Adjustments Retirements June 30, 2008
Non-depreciable
Land $ 4,422,170 $ - $ - $ - $ 4,422,170
Construction in progress 1,153,549 5,729,103 (707,522) - 6,175,130
Total - non-depreciable 5,575,719 5,729,103 (707,522) - 10,597,300
Depreciable
Land improvements 360,669 - - - 360,669
Buildings and improvements 1,146,764 - 574,268 - 1,721,032
Sewer system 21,985,782 612,272 - - 22,598,054
Storm drainage system 15,573,744 97,777 58,482 - 15,730,003
Water system 48,315,942 35,477 74,772 - 48,426,191
Equipment 1,335,584 279,649 - (157,248) 1,457,985
Auto and trucks 1,297,967 64,571 - (58,554) 1,303,984
Total depreciable 90,016,452 1,089,746 707,522 (215,802) 91,597,918
Accumulated depreciation
Land improvements (360,669) - - - (360,669)
Buildings and improvements (506,571) (29,073) - - (535,644)
Sewer system (6,152,544) (526,869) - - (6,679,413)
Storm drainage system (4,438,961) (394,663) - - (4,833,624)
Water system (18,527,538) (1,157,392) - - (19,684,930)
Equipment (761,259) (168,722) - 157,248 (772,733)
Auto and trucks (843,805) (144,745) - 58,554 (929,996)
Total accumulated depreciation (31,591,347) (2,421,464) - 215,802 (33,797,009)
Business-type activities
capital assets, net $ 64,000,824 $ 4,397,385 $ - $ - $ 68,398,209
**Adjustments column include reclassifications from previous years recording of capital assets.
Depreciation expense for business-type activities is charged to activities as follows:
Sanitary sewer $ 658,915
Storm sewer 415,616
Water 1,346,933
Total depreciation for business-type activities $ 2,421,464
6. Long-term Debt and Other Debt:
General Obligation Bonds payable
Bond transactions for the year ended June 30, 2008, and future maturities of bond principal
and interest, are as follows:
General Obligation bond issues - Original amount was $13,000,000. Funds were used to
build new library. Interest rates from 3 percent to 4.75 percent
58
City of Tigard, Oregon
Notes to Basic Financial Statements
6. Long-term Debt and Other Debt, Continued:
Fiscal Year Outstanding Paid Outstanding Future
Due June 30, 2007 During Year June 30, 2008 Interest
2008 518,411 (518,411) - -
2009 536,063 - 536,063 438,850
2010 553,795 - 553,795 422,768
2011 571,890 - 571,890 404,493
2012 590,281 - 590,281 384,477
2013-2018 3,301,386 - 3,301,386 1,569,310
2019-2022 4,994,543 - 4,994,543 849,131
$ 11,066,369 $ (518,411) $ 10,547,958 $ 4,069,029
Bancroft Improvement Bonds:
Bancroft improvement bond issues - Interest rates from 3.9 percent to 7.25 percent;
payable first from assessments to benefited properties and second, from the general credit
of the City.
Paid and
Fiscal Year Outstanding Called Outstanding Future
Due June 30, 2007 During Year June 30, 2008 Interest
2008 116,194 (116,194) - -
2009 120,491 - 120,491 74,533
2010 126,885 - 126,885 68,289
2011 133,593 - 133,593 61,685
2012 140,720 - 140,720 54,698
2013 148,271 148,Z71 45,115
2014-2018 631,270 - 631,270 130,212
$ 1,417,424 $ (116,194) $ 1,301,230 $ 434,532
Bancroft improvement bonds - original amount of $1,307,969 for 69``' Avenue Local
Improvement District and original amount of $1,947,678 for Dartmouth Street Local
Improvement District.
Notes Payable:
Note payable issued January 23, 2003 - Original amount of $2,290,248. Funds were used
for expansion and updating for Cook Park. Interest rates from 3 percent to 4.35 percent;
payable from Parks SDC Fund.
59
City of Tigard, Oregon
Notes to Basic Financial Statements
6. Long-term Debt and Other Debt, Continued:
Fiscal Year Outstanding Paid Outstanding Future
Due June 30, 2007 During Year June 30, 2008 Interest
2008 229,201 (229,201) - -
2009 235,690 - 235,690 42,363
2010 247,318 - 247,318 32,935
2011 259,053 - 259,053 22,795
2012 270,925 - 270,925 11,785
$ 1,242,187 $ 229, 201) $ 1,012,986 $ 109, 87 8
Other long-term obligations for accrued compensated absences and changes thereto during
the year ended June 30, 2008 are as follows:
Balance Balance Due
June 30, June 30, in current
2007 Additions Retirements 2008 year
Governmental activities:
Compensated absences $ 919,258 $ 1,475,808 $ (1,281,060) $ 1,114,006 $ 865,883
Business -type activities:
Compensated absences $ 160,885 $ 247,303 $ (226,680) $ 181,508 $ 142,775
Expenditures for liquidating compensated absences liabilities are recorded in the General, Special
Revenue, Capital Projects, Enterprise, and Internal Service Funds.
7. Transfers:
The City utilizes three types of interfund transfers. The first type is transfers received for
services provided. These transfers are based on a cost allocation plan and are reflected as
expenses of the appropriate activity in the government - wide statements. The second type
of transfer is a transfer of resources. Typically, this transfer is made to close out funds that
are no longer needed for financial reporting. The third type of transfer is a transfer for
direct costs that can be specifically identified and billed directly to the benefiting fund.
These types of transfers are reflected as expenses of the appropriate activity in the
government - wide statements.
60
City of Tigard, Oregon
Notes to Basic Financial Statements
8. Retirement Plans:
The City contributes to retirement plans on behalf of all eligible employees. At June 30,
2008, the following employee groups were covered by the following retirement plans:
Group Retirement Plan
Management/Professional Staff (Nonunion) International City Managers Association
Retirement Corp. (ICMARC) Money
Purchase Plan
Oregon Public Employees Union Employees ICMARC Money Purchase Plan
Tigard Police Officers State of Oregon Public Employees
Retirement System (PERS)
Oregon Public Employees Retirement Systems (OPERS)
Plan Description
The City is a participating employer in the Oregon Public Employees Retirement System
(OPERS), a cost sharing multiple-employer public employee retirement system, established
under Oregon Revised Statutes, Section 238.600, that acts as a common investment and
administrative agent for public employers in the State of Oregon. Substantially all full-time
police employees are participants in PERS. The plan provides retirement, death and
disability benefits to participants or their beneficiaries. Benefits are established by State
Statute, and employer contributions are made at an actuarially determined rate as adopted
by the OPERS Retirement Board. OPERS, a component unit of the State of Oregon,
issues a comprehensive annual financial report, which may be obtained by writing to
Oregon Public Employees Retirement System, P.O. Box 23700, Tigard, Oregon 97281-
3700.
Funding Policy
The City's annual required contribution rate, as of the most recent actuarial valuation of July
1, 2007, is 10.66 percent of covered payroll for Tier I & II employees and 6.03 percent of
covered payroll for Oregon Pulbic Service Retirement Plan (OPSRP) employees. At June
30, 2008, the City had 17 employees in OPSRP.
The City is required by State Statute to contribute its current employer rate of 10.66 percent
and 6.03 percent of covered wages, and has contractually committed to pay the employee
contributions of 6 percent.
Annual Pension Cost
Because all OPERS participating employers are required by law to submit the contributions
as adopted by the OPERS Retirement Board, there is no net pension obligation to report
61
City of Tigard, Oregon
Notes to Basic Financial Statements
8. Retirement Plans, Continued:
and the annual contributions are equal to the annual pension cost. For the fiscal years
ended June 30, 2008, 2007 and 2006, the City's annual pension cost was $625,233, $741,277,
and $753,721, respectively.
ICXURC Plans
The City contributes to defined contribution, single employer retirement plans at a specified
percent of gross salary depending on the employment group, for all employees who are not
covered under the Police Pension Plan. Employees do not make contributions to these
plans. The City is required to make contributions to these plans under authority of City
Council resolution and the plan documents.
Employees become eligible to participate in the plans after six months of service and vest
immediately. Employees may withdraw funds upon retirement or termination of
employment.
ICMARC Plans, Continued:
Contributions to the plans are made to a fiduciary. Since the plans are administered by the
City, the assets, equity and operations of the plans are accounted for in the General
Employees Pension Plan Fund, a pension trust fund. The plans invest in various money
market and equity mutual funds.
Required and actual contributions to the plan were $1,597,169 for the year ended June 30,
2008. Contributions are calculated as a percentage of gross payroll. The contributions
range from 10 to 11 percent for all eligible employees participating in the plans.
Deferred Compensation Plans
The City offers certain employees deferred compensation plans created in accordance with
Internal Revenue Code Section 457. The plans permit employees to defer a portion of their
salary until future years. Contributions for the plans are made to fiduciaries who hold the
funds in trust for the plans' participants. The deferred compensation plans are not
considered City funds and are excluded from the City's financial statements.
9. Transactions with Clean Water Services of Washington County:
The City collects charges for treatment of City sewage on behalf of the Clean Water
Services of Washington County and remits all collections to Clean Water Services, except
for 17.52 percent of sewer service charges collected and 20 percent of connection charges
collected, in accordance with an agreement between the City and Clean Water Services.
Payments of $7,507,133 were made to Clean Water Services during fiscal year 2008 under
this agreement.
62
City of Tigard, Oregon
Notes to Basic Financial Statements
9. Transactions with Clean Water Services of Washington County, Continued:
The net amount retained by the City is reported as revenue in the enterprise funds in the
proprietary funds statement of revenues, expenses and changes in fund net assets.
Revenues are reported net because the City acts in a fiduciary capacity on behalf of Clean
Water Services.
10. Constitutional Property Tax Limitations:
In November 1990, the Oregon voters approved a State constitutional limit on property
taxes for schools and nonschool government operations. Under the provisions of the
limitation, tax revenues are separated into those for the public school system and those for
local government operations other than the public school system. The limitation specifies
$10 is the maximum allowable tax for each $1,000 of property real market value imposed by
local governments other than the public school system.
The limitation applies to all state and local taxes and charges on property except for the
following:
1. Incurred charges for goods or services received at the owner's option;
2. Assessments for capital construction that provide a special benefit to the property
and that can be paid off over at lease ten years;
3. Taxes to repay bonded debt authorized by the state constitution;
4. Taxes to repay existing bonded debt for capital construction, and
5. Taxes to repay new bonded debt for capital construction if approved by voters.
During May 1997, Oregon voters approved Measure 50 which limits taxes on each property
by reducing the 1997-98 assessed value of each property to 90 percent of its 1995-96 value.
Measure 50 also limits future growth of the taxable value of each property to 3 percent per
year with certain exceptions. Measure 50 also establishes permanent tax rates for Oregon's
local taxing districts, which replace the former tax base amounts of the districts. Tigard's
taxing authority is limited to its permanent rate of $2.51 per thousand dollars of assessed
value.
At the beginning of each fiscal year, the Washington County Assessor determines assessed
values of properties in the City. Washington County is responsible for the levying and
collecting the property taxes as well as distributing the tax revenue to all taxing jurisdictions
in the County.
63
City of Tigard, Oregon
Notes to Basic Financial Statements
11. Risk Management:
The City is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees and others; and natural
disasters. The City purchases commercial insurance to deal with substantially all these risks
with nominal deductibles. Settled claims resulting from these risks have not exceeded
commercial insurance coverage in any of the past three fiscal years.
12. Subsequent Events:
On August 5, 2008, the Tigard City Council approved a resolution entering into an
intergovernmental agreement with the City of Lake Oswego regarding water facilities. As
part of the agreement Tigard will pay for part of the cost of expanding and upgrading Lake
Oswego's water treatment facilities. In return, Lake Oswego will provide Tigard with an
additional 14 million gallons of water per day (mgd) beginning in 2016. The estimated cost
for the City of Tigard is $81 million over the next ten years. On September 23, 2008, the
Council approved a resolution allowing staff to pursue a $22 million line of credit as interim
funding. The City intends to ultimately fund the improvements with revenue bonds.
64
Its
Required Supplementary Information
66
t
~ ~
CITY OF TIGARD, OREGON
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Taxes $ 10,995,778 $ 10,995,778 $ 11,096,523 $ 100,745
Franchise fees 3,974,545 3,974,545 4,551,169 576,624
Licenses and permits 293,000 293,000 674,422 381,422
Intergovernmental revenues 4,309,888 4,309,888 5,250,929 941,041
Charges for services 1,093,350 1,093,350 756,253 (337,097)
Fines and forfeitures 797,400 797,400 847,069 49,669
Interest earnings 302,495 302,495 530,391 227,896
Miscellaneous 53,850 53,850 20,098 (33,752)
Total revenues 21,820,306 21,820,306 23,726,854 1,906,548
EXPENDITURES:
Community services 14,108,212 14,519,170 13,801,110 718,060
Public works 3,084,603 3,084,603 2,757,289 327,314
Development services 3,384,411 3,384,411 3,128,507 255,904
Policy and administration 416,368 430,633 397,510 33,123
General government 30,000 30,000 - 30,000
Contingency 1,000,000 574,777 - 574,777
Total expenditures 22,023,594 22,023,594 20,084,416 1,939,178
Change in fund balance
before other financing sources (uses) (203,288) (203,288) 3,642,438 3,845,726
Other financing sources (uses):
Operating transfer in 2,965,162 2,965,162 2,617,862 (347,300)
Operating transfer out (6,337,877) (6,337,877) (5,392,264) 945,613
Total other financing sources (uses) (3,372,715) (3,372,715) (2,774,402) 598,313
Change in fund balance (3,576,003) (3,576,003) 868,036 4,444,039
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 8,838,290 8,838,290 9,926,021 1,087,731
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 5,262,287 $ 5,262,287 $ 10,794,057 $ 5,531,770
68
CITY OF TIGARD, OREGON
GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Federal grants i$ 91,300 $ 91,300 $ - i$ (91,300)
State gas tax 2,253,000 2,253,000 2,193,640 (59,360)
County gas tax 208,500 208,500 213,098 4,598
City gas Tax 100,000 - - -
Street lighting fees 13,000 13,000 4,922 (8,078)
Interest earnings 71,850 71,850 153,754 81,904
Miscellaneous - - 30,535 30,535
Total revenues 2,737,650 2,637,650 2,595,949 (41,701)
EXPENDITURES:
Development services 472,000 472,000 530,473 (58,473)
Contingency 500,000 404,088 - 404,088
Capital projects 752,500 848,412 378,186 470,226
Total expenditures 1,724,500 1,724,500 908,659 815,841
Change in fund balance
before other financing sources (uses) 1,013,150 913,150 1,687,290 774,140
Other financing sources (uses):
Operating transfer out (1,698,408) (157,593) (1,434,231) (1,276,638)
Change in fund balance (685,258) 755,557 253,059 (502,498)
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 2,310,889 2,552,626 2,552,626
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR 6 1,625,631 S 3,308,183 2,805,685 S (502,498)
69
Other Supplementary Information
70
t
~ ~
CITY OF TIGARD, OREGON
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2008
Special Capital Debt
Revenue Projects Service
Funds Funds Funds Total
ASSETS:
Cash and investments $ 9,921,853 $ 445,717 $ 292,890 $ 10,660,460
Accounts receivable 190,326 100,000 - 290,326
Taxes receivable - - 20,793 20,793
Assessment liens receivable 51,722 - - 51,722
Total assets $ 10,163,901 $ 545,717 $ 313,683 $ 11,023,301
LIABILITIES:
Accounts payable $ 224,532 $ 85,435 $ - $ 309,967
Customer deposits 211,926 2,500 - 214,426
Deferred revenues - Property taxes - - 16,878 16,878
Deferred revenues - Assessment liens 51,722 - - 51,722
Total liabilities 488,180 87,935 16,878 592,993
FUND BALANCES -
Unreserved 9,675,721 457,782 296,805 10,430,308
Total liabilities and fund balances $ 10,163,901 $ 545,717 $ 313,683 $ 11,023,301
72
CITY OF TIGARD, OREGON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the fiscal year ended June 30, 2008
Special Capital Debt
Revenue Projects Service
Funds Funds Funds Total
REVENUES:
Property taxes $ - - $ 1,041,454 1,041,454
Licenses and permits 1,197,419 - 1,197,419
Charges for services 2,708,183 - - 2,708,183
Interest earnings 500,937 52,644 8,962 562,543
Miscellaneous revenues 71,101 100,652 - 171,753
Total revenues 4,477,640 153,296 1,050,416 5,681,352
EXPENDITURES:
Development services 1,532,816 - - 1,532,816
Debt service - - 972,814 972,814
Capital outlay 2,480,036 1,225,728 - 3,705,764
Total expenditures 4,012,852 1,225,728 972,814 6,211,394
Changes in fund balance
before other financing sources (uses) 464,788 (1,072,432) 77,602 (530,042)
Other financing sources (uses):
Operating transfer in 368,845 51,000 - 419,845
Operating transfer out (2,050,376) - - (2,050,376)
Total other financing sources (uses) (1,681,531) 51,000 - (1,630,531)
Changes in fund balance (1,216,743) (1,021,432) 77,602 (2,160,573)
FUND BALANCE - beginning of year 10,892,464 1,479,214 219,203 12,590,881
FUND BALANCE - end of year $ 9,675,721 $ 457,782 $ 296,805 $ 10,430,308
73
Special Revenue Funds
The balance sheet and statement of revenues, expenditures, and changes in fund balance of the nonmajor
special revenue funds are reported in the combining governmental fund statements. Fund statements for
the major special revenue funds are reported in the basic financial statements.
Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented
here for each individual special revenue fund.
Nonmajor Special Revenue Funds:
Electrical Inspection Fund - This fund accounts for fees charged for permits, plan check fees and
inspection of electrical improvements.
Underground Utility Fund - This fund accounts for monies received from developers for future
underground utility improvements.
Criminal Forfeiture Fund - This fund accounts for funds and property seized from criminals in
connection with crimes committed prior to passage of Ballot Measure 3
Insurance Fund - Records refunds of prior years workers' compensation premiums and other insurance
related revenues.
Building Fund - This fund accounts for fees charged for building inspection and plan review activities.
Traffic Impact Fee Urban Services Fund - This fund accounts for traffic impact fees collected on roads
within the City's urban services area. Funds will be used for highway and transit capital improvements
approved in the City's Capital Improvement Plan (CIP).
Urban Services Fund - This fund accounts for all revenues and expenditures related to services provided to
the urban service areas of Washington County. The City of Tigard provides services to this area pursuant to
an intergovernmental agreement with Washington County.
Street Maintenance Fee Fund - This fund was established in FY 2003-04 to track the revenues and
expenditures for the Street Maintenance Fee. This fee provides revenue designated for use in the
maintenance of existing streets.
Parks SDC Fund - This fund was established in FY 2005-06 to track the revenues associated with the
collection of Parks System Development Charges. These funds are used to fund the acquisition,
development, and expansion of additional recreation spaces and facilities that are included in the City's Park
Master Plan.
Parks SDC Fund - This fund was established in FY 2005-06 to track the revenues associated with the
collection of Parks System Development Charges. These funds are used to fund the acquisition,
development, and expansion of additional recreation spaces and facilities that are included in the City's Park
Master Plan.
City Gas Tax Fund - This fund was established in FY 2007-08 to track the revenues and expenditures for
the City's gas tax fee. This fee provides revenue designated for use in the construction and maintenance of
streets.
74
■w
CITY OF TIGARD, OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30, 2008
Traffic Street
Traffic Electrical Underground Criminal Impact Fee Urban Maintenance City
Impact Fee Inspection Utility Forfeiture Insurance Building Urban Services Services Fee Parks SDC Gas Tax
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total
ASSETS:
Cash and investments $ 2,679,286 $ 115,223 $ 526,762 $ 52,148 $ 757,157 $ 1,166,064 $ 675,503 $ 98,064 $ 133,637 $ 3,086,936 $ 631,073 $ 9,921,853
Accounts receivable 51,722 156 4,851 131,374 53,945 242,048
Total assets $ 2,731,008 5 115,223 $ 526,762 $ 52,148 5 757,313 $ 1,170,915 5 675,503 $ 98,064 $ 265,011 $ 3,086,936 $ 685,018 $ 10,163,901
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Accounts payable $ 49,904 $ - $ $ 239 $ $ 64,093 $ $ - $ 63,963 $ $ 46,333 $ 224,532
Customer deposits 135,345 1,866 58,538 16,177 - - 211,926
Deferred revenues 51,722 - - - - - - - - - - 51,722
Total liabilities 236,971 1,866 239 122,631 16,177 63,963 46,333 488,180
FUND BALANCE UNRESERVED 2,494,037 113,357 526,762 51,909 757,313 1,048,284 675,503 81,887 201,048 3,086,936 638,685 9,675,721
Total liabilities and fund
balances $ 2,731,008 $ 115,223 $ 526,762 $ 52,148 $ 757,313 $ 1,170,915 $ 675,503 $ 98,064 $ 265,011 $ 3,086,936 $ 685,018 $ 10,163,901
76
CITY OF TIGARD, OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
For the fiscal year ended June 30, 2008
Traffic Street
Traffic Electrical Underground Criminal Impact Fee Urban Maintenance City
Impact Fee Inspection Utility Forfeiture Insurance Building Urban Services Services Fee Parks SDC Gas Tax
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total
REVENUES:
Licenses and permits $ - $ 193,582 $ - $ $ $ 1,003,837 $ $ - $ - $ - - $ 1,197,419
Charges for services 579,468 - 103,096 5,411 2,553 869,312 451,560 696,783 2,708,183
Interest earnings 142,940 10,634 21,818 2,436 34,117 74,328 34,337 4,797 4,919 154,039 16,572 500,937
D'Lisccllancous revenues - - - (239) 68,199 2,274 - 867 - - - 71,101
Total revenues 722,408 204,216 124,914 2,197 102,316 1,085,850 34,337 8,217 874,231 605,599 713,355 4,477,640
EXPENDITURES:
Development services - - - - - 1,532,816 - - - - - 1,532,816
Capital projects 1,283,017 - 218,466 793,479 185,074 2,480,036
Total expenditures 1,283,017 1,532,816 218,466 793,479 185,074 4,012,852
Changes in fund balance
before other financing sources (uses) (560,609) 204,216 124,914 2,197 102,316 (446,966) (184,129) 8,217 80,752 605,599 528,281 464,788
Other financing sources (uses):
Transferin - - - - - 258,441 - - - - 110,404 368,845
Transfer out (181,238) (329,529) (2,044) (461,857) (20,560) (129,148) (926,000) - (2,050,376)
Total other financing sources (uses) (181,238) (329,529) (2,044) (203,416) (20,560) (129,148) (926,000) 110,404 (1,681,531)
Changes in fund balance (741,847) (125,313) 124,914 153 102,316 (650,382) (204,689) 8,217 (48,396) (320,401) 638,685 (1,216,743)
FUND BALANCE - beginning of vear 3,235,884 238,670 401,848 51,756 654,997 1,698,666 880,192 73,670 249,444 3,407,337 - 10,892,464
FUND BALANCE - end of year $ 2,494,037 $ 113,357 $ 526,762 $ 51,909 $ 757,313 $ 1,048,284 $ 675,503 $ 81,887 $ 201,048 $ 3,086,936 $ 638,685 $ 9,675,721
77
CITY OF TIGARD, OREGON
TRAFFIC IMPACT FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
System development charges $ 788,800 $ 788,800 $ 579,468 $ (209,332)
Interest earnings 105,225 105,225 142,940 37,715
Total revenues 894,025 894,025 722,408 (171,617)
EXPENDITURES:
Contingency 300,000 140,000 - 140,000
Capital outlay 1,825,186 1,684,732 1,283,017 401,715
Total expenditures 2,125,186 1,824,732 1,283,017 541,715
Change in fund balance
before other financing sources (uses) (1,231,161) (930,707) (560,609) 370,098
Other financing sources (uses):
Operating transfer out (198,194) (465,694) (181,238) 284,456
Change in fund balance (1,429,355) (1,396,401) (741,847) 654,554
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 3,235,535 3,235,535 3,235,884 349
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 1,806,180 $ 1,839,134 $ 2,494,037 $ 654,903
78
CITY OF TIGARD, OREGON
ELECTRICAL INSPECTION FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Electrical permit fees $ 257,480 $ 257,480 $ 193,582 $ (63,898)
Electrical plan check fees 8,975 8,975 - (8,975)
Interest earnings 6,700 6,700 10,634 3,934
Total revenues 273,155 273,155 204,216 (68,939)
EXPENDITURES:
Contingency 57,500 57,500 - 57,500
Change in fund balance
before other financing sources (uses) 215,655 215,655 204,216 (11,439)
Other financing sources (uses):
Operating transfer out (385,982) (385,983) (329,529) 56,454
Change in fund balance (170,327) (170,328) (125,313) 45,015
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 206,743 238,670 238,670 -
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 36,416 $ 68,342 $ 113,357 $ 45,015
79
CITY OF TIGARD, OREGON
UNDERGROUND UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Charges for services $ 90,000 $ 90,000 $ 103,096 $ 13,096
Interest earnings 11,000 11,000 21,818 10,818
Total revenues - change in fund balance 101,000 101,000 124,914 23,914
EXPENDITURES:
Capital outlay 300,000 300,000 - 300,000
Contingency 30,000 30,000 - 30,000
Total expenditures 330,000 330,000 - 330,000
Change in fund balance
before other financing sources (uses) (229,000) (229,000) 124,914 330,000
Other financing sources (uses):
Operating transfer out (25,000) (25,000) - 25,000
Change in fund balance (254,000) (254,000) 124,914 355,000
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 340,565 340,565 401,848 61,283
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 86,565 $ 86,565 $ 526,762 $ 416,283
80
CITY OF TIGARD, OREGON
CRIMINAL FORFEITURE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Interest earnings $ 1,680 $ 1,680 $ 2,436 $ 756
Miscellaneous 5,000 5,000 (239) (5,239)
Total revenues 6,680 6,680 2,197 (4,483)
Change in fund balance
before other financing sources (uses) 6,680 6,680 2,197 (4,483)
Other financing (uses):
Operating transfer out (50,000) (50,000) (2,044) 47,956
Change in fund balance (43,320) (43,320) 153 38,990
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 51,675 51,756 51,756 -
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 8,355 $ 8,436 $ 51,909 $ 38,990
81
CITY OF TIGARD, OREGON
INSURANCE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Interest earnings $ 21,600 $ 21,600 $ 34,117 $ 12,517
Miscellaneous 25,000 25,000 68,199 43,199
Total revenues - change in fund balance 46,600 46,600 102,316 55,716
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 668,500 668,500 654,997 (13,503)
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 715,100 $ 715,100 $ 757,313 $ 42,213
82
CITY OF TIGARD, OREGON
BUILDING FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Licenses and permits $ 1,563,872 $ 1,563,875 $ 1,003,837 $ (560,038)
Charges for services 10,200 10,200 5,411 (4,789)
Interest earnings 50,000 50,000 74,327 24,327
Miscellaneous 1,500 1,500 2,274 774
Total revenues 1,625,572 1,625,575 1,085,849 (539,726)
EXPENDITURES:
Development services 1,822,523 1,822,523 1,532,816 289,707
Contingency 350,000 350,000 - 350,000
Total expenditures 2,172,523 2,172,523 1,532,816 639,707
Change in fund balance
before other financing sources (uses) (546,951) (546,948) (446,967) 99,981
Other financing sources (uses):
Operating transfer in 313,143 313,143 258,441 (54,702)
Operating transfer out (534,552) (534,553) (461,857) 72,696
Total other financing sources (uses) (221,409) (221,410) (203,416) 17,994
Change in fund balance (768,360) (768,358) (650,383) 117,975
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 1,648,250 1,648,250 1,698,666 50,416
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 879,890 $ 879,891 $ 1,048,284 168,391
83
CITY OF TIGARD, OREGON
TRAFFIC IMPACT FEE URBAN SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Interest earnings $ 26,000 $ 26,000 $ 34,337 $ 8,337
Total revenues 26,000 26,000 34,337 8,337
EXPENDITURES:
Government expenses 575,261 575,261 218,466 356,795
Capital projects 240,000 240,000 240,000
Total expenditures 815,261 815,261 218,466 596,795
Change in fund balance
before other financing sources (uses) (789,261) (789,261) (184,129) 605,132
Other financing sources (uses):
Operating transfer out (22,787) (22,787) (20,560) 2,227
Change in fund balance (812,048) (812,048) (204,689) 607,359
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 812,048 812,048 880,192 68,144
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ - $ - $ 675,503 $ 675,503
84
CITY OF TIGARD, OREGON
URBAN SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Charges for services $ - $ - $ 2,553 $ 2,553
Interest earnings - - 4,797 4,797
Recovered Expenditures - - 867 867
Total revenues - - 8,217 7,350
EXPENDITURES:
General Government 42,300 42,300 - 42,300
Change in fund balance (42,300) (42,300) 8,217 49,650
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 42,300 42,300 73,670 31,370
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ - $ - $ 81,887 $ 81,020
85
CITY OF TIGARD, OREGON
STREET MAINTENANCE FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Fees and charges $ 798,000 $ 798,000 $ 869,312 $ 71,312
Interest earnings 7,000 7,000 4,919 (2,081)
Total revenues 805,000 805,000 874,231 69,231
EXPENDITURES:
Contingency 80,000 80,000 - 80,000
Capital projects 800,000 800,000 793,479 6,521
Total expenditures 880,000 880,000 793,479 86,521
Change in fund balance
before other financing sources (uses) (75,000) (75,000) 80,752 155,752
Other financing sources (uses):
Operating transfer out (136,550) (136,550) (129,148) 7,402
Change in fund balance (211,550) (211,550) (48,396) 163,154
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 217,077 217,077 249,444 32,367
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 5,527 $ 5,527 $ 201,048 $ 195,521
86
CITY OF TIGARD, OREGON
PARKS SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
System development charges $ 1,000,000 $ 1,000,000 $ 451,560 $ (548,440)
Interest earnings 86,625 86,625 154,039 67,414
Total revenues 1,086,625 1,086,625 605,599 (481,026)
Change in fund balance
before other financing sources (uses) 1,086,625 1,086,625 605,599 (481,026)
Other financing sources (uses):
Operating transfer out (2,221,697) (2,221,697) (926,000) 1,295,697
Change in fund balance (1,135,072) (1,135,072) (320,401) 814,671
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 2,765,399 2,765,399 3,407,337 641,938
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 1,630,327 $ 1,630,327 $ 3,086,936 $ 1,456,609
87
CITY OF TIGARD, OREGON
CITY GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Fees & Charges $ 900,000 $ 900,000 $ 696,783 $ (203,217)
Interest & Rentals 15,000 15,000 16,572 1,572
Total revenues 915,000 915,000 713,355 (201,645)
EXPENDITURES:
Capitallmprovments 500,000 500,000 185,074 314,926
Contingency 75,000 75,000 - 75,000
Total expenditures 575,000 575,000 185,074 389,926
Change in fund balance
before other financing sources (uses) 340,000 340,000 528,281 188,281
Other financing sources (uses):
Transfers In 100,000 100,000 110,404 10,404
Change in fund balance 440,000 440,000 638,685 198,685
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR - -
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 440,000 $ 440,000 $ 638,685 $ 198,685
88
11
i
~ 1
Debt Service Funds
The balance sheet and statement of revenues, expenditures, and changes in fund balance of the nonmajor
debt service fund is reported in the combining nonmajor governmental fund statements. Fund statements
for the major debt service fund are reported in the basic financial statements.
Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented
here for each debt service fund.
Major Debt Service Funds:
Bancroft Debt Service Fund - This fund accounts for payment of Bancroft improvement bond principal
and interest. The sources of revenue is the collection of assessments against benefited property, interest
and contributions from other funds for their share of costs.
Nonmajor Debt Service Fund:
General Obligation Debt Service Fund - This fund accounts for payment of general obligation bond
principal and interest. The sources of revenue is from property taxes and interest earnings.
Urban Renewal Agency Debt Service Fund - This fund accounts for payment of the Tigard Urban
Rewnewal Agnecy bond principal and interest. The sources of revenue is from property= taxes and interest
earnings.
90
CITY OF TIGARD, OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
June 30, 2008
General Urban Renewal
Obligation Agency
Debt Debt
Service Fund Service Fund Total
ASSETS:
Cash and investments $ 253,228 $ 39,662 $ 292,890
Property taxes receivable 20,793 - 20,793
Total assets $ 274,021 $ 39,662 $ 313,683
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Deferred revenues:
Property taxes $ 16,878 $ $ 16,878
Total liabilities 16,878 - 16,878
FUND BALANCES
DESIGNATED FOR DEBT SERVICE 257,143 39,662 296,805
Total liabilities and
fund balances $ 274,021 $ 39,662 $ 313,683
91
CITY OF TIGARD, OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
June 30, 2008
General Urban Renewal
Obligation Agency
Debt Debt
Service Fund Service Fund Total
REVENUES:
Taxes $ 1,002,985 $ 38,469 $ 1,041,454
Interest earnings 7,769 1,193 8,962
Total revenues 1,010,754 39,662 1,050,416
EXPENDITURES:
Debt service 972,814 - 972,814
Change in fund balance 37,940 39,662 77,602
DESIGNATED - FUND BALANCE
BEGINNING OF YEAR 219,203 - 219,203
DESIGNATED FUND BALANCE,
END OF YEAR $ 257,143 $ 39,662 $ 296,805
92
CITY OF TIGARD, OREGON
BANCROFT BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Collection of bonded assessments $ 129,704 $ 129,704 $ 120,678 $ (9,026)
Interest earnings 123,864 123,864 147,892 24,028
Total revenues 253,568 253,568 268,570 15,002
EXPENDITURES:
Debt service 943,412 943,412 124,224 819,188
Change in fund balance (689,844) (689,844) 144,346 834,190
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 851,415 851,415 868,623 17,208
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 161,571 $ 161,571 $ 1,012,969 $ 851,398
93
CITY OF TIGARD, OREGON
GENERAL OBLIGATION DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Taxes $ 984,814 $ 984,814 $ 1,002,985 $ 18,171
Interest earnings 6,250 6,250 7,769 1,519
Total revenues 991,064 991,064 1,010,754 19,690
EXPENDITURES:
Debt service 972,814 972,814 972,814 -
Change in fund balance 18,250 18,250 37,940 19,690
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 191,900 191,900 219,203 27,303
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 210,150 $ 210,150 $ 257,143 $ 46,993
94
CITY OF TIGARD, OREGON
URBAN RENEWAL AGENCY DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Property taxes $ 56,398 $ 56,398 $ 38,469 $ (17,929)
Interest earnings 1,000 1,000 1,193 193
Total revenues 57,398 57,398 39,662 (17,736)
Change in fund balance 57,398 57,398 39,662 (17,736)
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR -
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 57,398 $ 57,398 $ 39,662 $ (17,736)
95
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Capital Projects Funds
Combining statements for all individual nonmajor capital projects funds are reported here. The combined
totals are reported in the combining nonmajor governmental fund statements. Fund statements for the
major capital projects fund are reported in the basic financial statements.
Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented
here for each capital projects fund.
Major Capital Projects Fund:
Parks Capital Fund - This fund accounts for system development charges for major improvements to
recreational facilities within the City
Non-major Capital Projects Funds:
Facility Fund - This fund accounts for monies set aside for future major City facility improvements.
Urban Renewal Agency Capital Projects Fund - This fund was established in FY 2007-08 for the
creation of a new urban renewal agency improve downtown Tigard. Although expenditures were
budgeted in this fund for FY 2007-08, there were no actual expenditures from the fund for this fiscal year.
97
CITY OF TIGARD, OREGON
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
June 30, 2008
Facility
Fund
ASSETS:
Cash and investments $ 445,717
Accounts receivable 100,000
Total assets $ 545,717
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Accounts payable and accrued liabilities $ 85,435
Customer deposits 2,500
Deferred revenues -
Total liabilities 87,935
FUND BALANCES -
UNRESERVED 457,782
Total liabilities and fund balances $ 545,717
98
CITY OF TIGARD, OREGON
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURE''
AND CHANGES IN FUND BALANCE
For the fiscal year ended June 30, 2008
Facility
Fund
REVENUES:
Interest earnings $ 52,644
Miscellaneous 100,652
Total revenues 153,296
EXPENDITURES:
Capital projects 11225,728
Change in fund balance
before other financing sources (1,072,432)
Other financing sources (uses):
Transfers in 51,000
Change in fund balance (1,021,432)
UNDESIGNATED, UNRESERVED FUND BALANCE,
BEGINNING OF YEAR 1,479,214
UNDESIGNATED, UNRESERVED FUND BALANCE,
END OF YEAR $ 457,782
99
CITY OF TIGARD, OREGON
PARKS CAPITAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Intergovernmental revenues $ 540,020 $ 540,020 $ 150,000 $ (390,020)
Interest earnings 13,554 13,554 81,228 67,674
Other income 1,505,196 1,505,196 524,396 (980,800)
Miscellaneous - - 7,50 750
Total revenues 2,058,770 2,058,770 756,374 (1,302,396)
EXPENDITURES:
Contingency 500,000 500,000 - 500,000
Capital outlay 3,813,020 3,813,020 2,235,142 1,577,878
Debt service 280,273 280,273 280,273 -
Total expenditures 4,593,293 4,593,293 2,515,415 2,077,878
Change in fund balance
before other financing sources (uses) (2,534,523) (2,534,523) (1,759,041) 775,482
Other financing sources (uses):
Operating transfer in 3,139,117 3,139,117 1,858,420 (1,280,697)
Operating transfer out (422,620) (422,620) (422,620) -
Total other financing sources (uses) 2,716,497 2,716,497 1,435,800 (1,280,697)
Change in fund balance 181,974 181,974 (323,241) (505,215)
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 422,620 422,620 548,419 125,799
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 604,594 $ 604,594 $ 225,178 $ (379,416)
100
CITY OF TIGARD, OREGON
FACILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Intergovernmental revenues $ 467,000 $ 467,000 $ - $ (467,000)
Interest earnings 46,000 46,000 52,644 6,644
Other Revenue 75,000 75,000 100,652 25,652
Total revenues 588,000 588,000 153,296 25,652
EXPENDITURES:
Contingency 296,170 296,170 - 296,170
Capital outlay 2,035,986 2,035,986 1,225,728 810,258
Total expenditures 2,332,156 2,332,156 1,225,728 1,106,428
Change in fund balance
before other financing sources (uses) (1,744,156) (1,744,156) (1,072,432) 1,132,080
Other financing sources (uses):
Operating transfer in 416,510 416,510 51,000 (365,510)
Change in fund balance (1,327,646) (1,327,646) (1,021,432) 766,570
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 1,385,914 1,385,914 1,479,214 93,300
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 58,268 $ 58,268 $ 457,782 $ 859,870
101
CITY OF TIGARD, OREGON
URBAN RENEWAL AGENCY CAPITAL PROJECT FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Intergovernmental revenues $ 475,000 $ 475,000 $ $ (475,000)
Federal grants 710,000 710,000 (710,000)
Total revenues 1,185,000 1,185,000 - (1,185,000)
EXPENDITURES:
Capital projects 1,185,000 1,185,000 1,185,000
Change in fund balance - - -
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR - -
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ - $ - $ $ -
102
lit
i
~ 1
Enterprise Funds
For GAAP reporting purposes, the City reports three proprietary funds as major funds. These funds are
the Sanitary Sewer Fund, the Storm Sewer Fund which consists of the Storm Sewer Fund and the Water
Quality/Quantity Fund, and the Water Fund which includes the Water Fund, Water SDC Fund and Water
CIP Fund, however, for budgetary and legal purposes these funds are accounted for separately as listed
below.
All of the City's enterprise funds meet the criteria for major fund reporting and are reported in the basic
financial statements.
Schedules or revenues and changes in fund net assets - budget and actual are presented here for each
individual enterprise fund as required by Oregon regulations.
Major Enterprise Funds:
Sanitary Sewer Fund - This fund accounts for the City's sewer utility operations.
Storm Sewer Fund - This fund accounts for the City's storm drainage operations.
Storm Sewer Fund (budgetary basis financial statements only)
Water Quality/ Quantity Fund (budgetary basis financial statements only)
Water Fund - This fund accounts for the City's water operations.
Water Fund (budgetary basis financial statements only)
Water SDC Fund (budgetary basis financial statements only)
Water CIP Fund (budgetary basis financial statements only)
104
y ~
CITY OF TIGARD, OREGON
SANITARY SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Service charge $ 1,625,525 $ 1,625,525 $ 2,458,793 $ 833,268
Interest earnings 229,770 229,770 424,081 194,311
Total revenues 1,855,295 1,855,295 2,882,874 1,027,579
EXPENDITURES:
Public works 857,311 857,311 709,917 147,394
Contingency 600,000 600,000 - 600,000
Capital outlay 2,465,750 2,465,750 777,660 1,688,090
Total expenditures 3,923,061 3,923,061 1,487,577 2,435,484
Change in fund balance
before other financing sources (uses) (2,067,766) (2,067,766) 1,395,297 3,463,063
Other financing sources (uses):
Operating transfer out (737,717) (737,718) (619,248) 118,470
Change in fund balance (2,805,483) (2,805,484) 776,049 3,581,533
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 7,384,683 7,384,683 8,326,161 941,478
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 4,579,200 $ 4,579,200 $ 9,102,210 $ 4,523,011
106
CITY OF TIGARD, OREGON
SANITARY SEWER FUND
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
For the fiscal year ended June 30, 2008
Operating and
Non Operating Expenditures
Revenues / Expenses
Budgetary basis $ 2,882,874 1,487,577
Change in accrued compensated absences - 5,874
Expenditures capitalized - (777,661)
Services performed by other funds - 619,248
Depreciation expense - 650,552
Operating and nonoperating
revenue and expenses - page 38 $ 2,882,874 $ 1,963,223
107
CITY OF TIGARD, OREGON
STORM SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Service charge $ 1,521,842 $ 1,521,842 $ 1,584,322 $ 62,480
Interest earnings 15,400 15,400 28,313 12,913
Miscellaneous - - 15,725 15,725
Total revenues 1,537,242 1,537,242 1,628,360 91,118
EXPENDITURES:
Public works 851,021 851,021 841,346 9,675
Contingency 175,000 175,000 - 175,000
Capital outlay 372,000 372,000 95,573 276,427
Total expenditures 1,398,021 1,398,021 936,919 461,102
Change in fund balance
before other financing sources (uses) 139,221 139,221 691,441 552,220
Other financing sources (uses):
Operating transfer out (393,574) (393,574) (343,309) 50,265
Change in fund balance (254,353) (254,353) 348,132 602,485
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 484,900 484,900 592,672 107,772
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 230,547 $ 230,547 $ 940,804 $ 710,257
108
CITY OF TIGARD, OREGON
WATER QUALITY/ QUANTITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Service charge $ 35,000 $ 35,000 $ 8,775 $ (26,225)
Interest earnings 60,380 60,380 98,332 37,952
Total revenues 95,380 95,380 107,107 11,727
EXPENDITURES:
Contingency 90,000 90,000 - 90,000
Capital outlay 585,000 585,000 116,307 468,693
Total expenditures 675,000 675,000 116,307 558,693
Change in fund balance
before other financing sources (uses) (579,620) (579,620) (9,200) 570,420
Other financing sources (uses):
Operating transfer out (44,746) (44,746) (40,034) 4,712
Change in fund balance (624,366) (624,366) (49,234) 575,132
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 1,963,900 1,963,900 2,073,371 109,471
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 1,339,534 $ 1,339,534 $ 2,024,137 $ 684,603
109
CITY OF TIGARD, OREGON
STORM SEWER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
For the fiscal year ended June 30, 2008
Operating and
Non Operating Expenditures/
Revenues Expenses
Storm Sewer $ 1,628,360 936,919
Water Quality / Quantity 107,107 116,307
Total, budgetary basis 1,735,467 1,053,226
Change in accrued compensated absences - 5,628
Expenditures capitalized - (288,433)
Services performed by other funds - 383,343
Depreciation expense - 415,616
Operating and nonoperating
revenue and expenses - page 38 1,735,467 1,585,105
110
CITY OF TIGARD, OREGON
WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Service charge $ 6,834,650 $ 6,834,650 $ 7,100,680 $ 266,030
System development charges 200,000 200,000 - (200,000)
Interest earnings 54,000 54,000 188,897 134,897
Miscellaneous 74,500 74,500 136,370 61,870
Total revenues 7,163,150 7,163,150 7,425,947 262,797
EXPENDITURES:
Public works 5,673,872 5,673,872 4,313,088 1,360,784
Contingency 700,000 700,000 - 700,000
Capital outlay 816,250 816,250 272,849 543,401
Total expenditures 7,190,122 7,190,122 4,585,937 2,604,185
Change in fund balance
before other financing sources (uses) (26,972) (26,972) 2,840,010 2,866,982
Other financing sources (uses):
Operating transfer out (1,603,230) (1,603,230) (1,474,392) 128,838
Change in fund balance (1,630,202) (1,630,202) 1,365,618 2,995,820
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 1,708,846 1,708,846 3,525,654 1,816,808
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 78,644 $ 78,644 $ 4,891,272 $ 4,812,628
111
CITY OF TIGARD, OREGON
WATER SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
System development charges $ 350,000 $ 350,000 $ - $ (350,000)
Interest earnings 31,480 31,480 50,813 19,333
Total revenues 381,480 381,480 50,813 (330,667)
EXPENDITURES:
Contingency 37,000 37,000 - 37,000
Capital projects 247,000 247,000 27,012 219,988
Total expenditures 284,000 284,000 27,012 256,988
Change in fund balance
before other financing sources (uses) 97,480 97,480 23,801 (73,679)
Other financing sources (uses):
Operating transfer out (950,000) (950,000) (950,000)
Change in fund balance (852,520) (852,520) (926,199) (73,679)
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 968,841 968,841 972,447 3,606
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 116,321 $ 116,321 $ 46,248 $ (70,073)
112
CITY OF TIGARD, OREGON
WATER CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
System development charges $ 357,000 $ 357,000 $ - $ (357,000)
Other Income 1,000,000 1,000,000 9,270 (990,730)
Interest earnings 192,390 192,390 249,157 56,767
Total revenues 1,549,390 1,549,390 258,427 (1,290,963)
EXPENDITURES:
Contingency 935,250 135,250 - 135,250
Capital projects 6,235,000 7,035,000 5,630,750 1,404,250
Total expenditures 7,170,250 7,170,250 5,630,750 1,539,500
Change in fund balance
before other financing sources (uses) (5,620,860) (5,620,860) (5,372,323) 248,537
Other financing sources (uses):
Operating transfer in 950,000 950,000 950,000 -
Change in fund balance (4,670,860) (4,670,860) (4,422,323) 248,537
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 5,919,825 5,919,825 6,384,781 464,956
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 1,248,965 $ 1,248,965 $ 1,962,458 $ 713,493
113
CITY OF TIGARD, OREGON
WATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
For the fiscal year ended June 30, 2008
Operating and
Non Operating Expenditures /
Revenues Expenses
Water $ 7,425,947 $ 4,585,937
Water SDC 50,813 27,012
Water CIP 258,427 5,630,750
Total, budgetary basis 7,735,187 10,243,699
Change in inventory - 63,400
Change in accrued compensated absences - 9,121
Expenditures capitalized - (6,344,712)
Services performed by other funds - 1,474,392
Depreciation expense - 1,346,933
Operating and nonopcrating
revenue and expenses - page 38 $ 7,735,187 $ 6,792,833
114
CITY OF TIGARD, OREGON
ENTERPRISE FUNDS
RECONCILIATION OF BUDGETARY FUND BALANCE TO
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET ASSETS
For the fiscal year ended June 30, 2008
Total Total
Sanitary Storm Total
Sewer Sewer Water
Sanitary Sewer Fund $ 9,102,210 $ - $ -
Storm Sewer Fund - 940,804 -
Water Quality /Quantity Fund - 2,024,137 -
Water Fund - - 4,891,272
Water SDC Fund - - 46,248
Water CIP Fund - - 1,962,458
Fund balance - budget basis 9,102,210 2,964,941 6,899,978
Adjustments from budgetary basis to
generally accepted accounting principles basis:
Inventory - - 6,079
Capital assets, net 16,460,051 11,261,199 40,676,963
Capital outlay not capitalized - - 657,039
Accrued vacation payable (38,438) (28,683) (114,387)
Total Net Assets -
generally accepted accounting - -
principles basis - pages 37 and 38 $ 25,523,823 $ 14,197,457 $ 48,125,672
115
TIGARD
116
Internal Service Funds
Combining statements for internal service funds are reported here. The combined totals are reported
alongside the enterprise funds in the basic financial statements.
Schedules of revenues, expenses, and changes in fund net assets - budget and actual are also presented
here for each internal service fund as required by Oregon regulations.
Central Services Fund - This fund accounts for the central administrative functions within the City
Fleet/Property Management Fund - This fund accounts for all activity related to the Fleet
Maintenance and Property Management divisions in the City
117
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
June 30, 2008
Central Fleet/Property
Services Management
Fund Fund Total
ASSETS
Current assets:
Cash and investments $ 1,139,566 $ 165,549 $ 1,305,115
Accounts Receivable 5,054 350 5,404
Inventory 9,727 48,281 58,008
Total assets 1,154,347 214,180 1,368,527
LIABILITIES
Current liabilities:
Accounts payable and accrued
liabilities 484,514 85,967 570,481
Accrued compensated absences 137,582 14,677 152,259
Total liabilities 622,096 100,644 722,740
NET ASSETS
Net assets, unrestricted $ 532,251 $ 113,536 $ 645,787
118
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
For the fiscal year ended June 30, 2008
Central Fleet/Property
Services Management
Fund Fund Total
OPERATING REVENUES:
Service charges $ 5,658,512 $ 1,255,290 $ 6,913,802
Miscellaneous 46,438 1,294 47,732
Total operating revenues 5,704,950 1,256,584 6,961,534
OPERATING EXPENSES:
Salaries and wages 3,127,788 378,652 3,506,440
Contracted services 616,965 333,281 950,246
General, administrative and other 2,421,929 547,363 2,969,292
Total operating expenses 6,166,682 1,259,296 7,425,978
Operating income (loss) (461,732) (2,712) (464,444)
NONOPERATING REVENUE:
Interest revenue 24,998 2,813 27,811
Net income (loss) (436,734) 101 (436,633)
NET ASSETS - beginning of year 968,985 113,435 1,082,420
NET ASSETS - end of year $ 532,251 $ 113,536 $ 645,787
119
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal year ended June 30, 2008
Central Fleet/Property
Services Management
Fund Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 5,661,827 $ 1,258,904 $ 6,920,731
Payments to suppliers (2,725,874) (756,679) (3,482,553)
Payments to employees (3,126,646) (489,070) (3,615,716)
Other receipts 46,571 1,427 47,998
Net cash provided (used) by operating activities (144,122) 14,582 (129,540)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings collected 24,997 2,811 27,808
Net increase in cash and cash equivalents (119,125) 17,393 (101,732)
Cash and investments--beginning of the year 1,258,691 148,156 1,303,613
Cash and investments--end of the year $ 1,139,566 $ 165,549 $ 1,201,881
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss) $ (461,732) $ (2,712) $ (464,444)
Adjustments to reconcile operating income (loss) to net cash
provided by operating activities:
Change in assets and liabilities:
Receivables 3,448 3,747 7,195
Inventories 22,965 (19,454) 3,511
Accounts payable 290,054 29,848 319,902
Accrued compensated absences 1,143 3,153 4,296
Net cash provided (used) by operating activities $ (144,122) $ 14,582 $ (129,540)
120
CITY OF TIGARD, OREGON
CENTRAL SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Interest earnings $ 35,000 $ 35,000 $ 24,998 $ (10,002)
Miscellaneous 11,000 11,000 46,438 35,438
Total revenues 46,000 46,000 71,436 25,436
EXPENDITURES:
Policy and administration 4,756,442 4,567,882 4,535,899 31,983
General Government 1,913,301 2,018,301 1,630,783 387,518
Contingency 700,000 483,560 - 483,560
Total expenditures 7,369,743 7,069,743 6,166,682 903,061
Change in fund balance
before other financing sources (uses) (7,323,743) (7,023,743) (6,095,246) 928,497
Other financing sources (uses):
Operating transfer in 6,338,072 6,338,072 5,658,512 (679,560)
Change in fund balance (985,671) (685,671) (436,734) 248,937
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 1,133,734 1,133,734 968,985 (164,749)
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 148,063 $ 448,063 $ 532,251 $ 84,188
121
CITY OF TIGARD, OREGON
FLEET/PROPERTY MANAGEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2008
Variance
Budgeted Amounts Actual Over
REVENUES: Original Final Amounts (Under)
Interest earnings $ 1,455 $ 1,455 $ 2,813 $ 1,358
Miscellaneous - - 1,294 1,294
Total revenues 1,455 1,455 4,107 2,652
EXPENDITURES:
Public works 1,386,327 1,386,327 1,259,296 127,031
Contingency 80,000 80,000 - 80,000
Total expenditures 1,466,327 1,466,327 1,259,296 207,031
Change in fund balance
before other financing sources (uses) (1,464,872) (1,464,872) (1,255,189) 209,683
Other financing sources (uses):
Operating transfer in 1,435,930 1,435,930 1,255,290 (180,640)
Change in fund balance (28,942) (28,942) 101 29,043
UNDESIGNATED, UNRESERVED -
FUND BALANCE BEGINNING OF YEAR 44,755 44,755 113,435 68,680
UNDESIGNATED, UNRESERVED -
FUND BALANCE END OF YEAR $ 15,813 $ 15,813 $ 113,536 $ 97,723
122
TIGARD
123
Other Supplementary Schedules
Schedules included in this section are:
• Property Tax Transactions and Outstanding Balances
• Bond and Bond Interest Transactions
• Future Debt Service Requirements of Long Term Notes Payable
• Future Debt Service Requirements of Bancroft Improvement Bonds
• Future Debt Service Requirements of General Obligation Bonds
TIGARD
124
11
i
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CITY OF TIGARD, OREGON
SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES
For the fiscal year ended June 30, 2008
Property Add Property
Taxes Levy as Taxes
Receivable Extended Deduct Add Receivable
June 30, by Discounts (Deduct) Add Deduct June 30,
2007 Assessor Allowed Adjustments Interest Collections 2008
2007 - 2008 S - S 12,528,573 S (318,105) S (14,484) S 3,940 $ (11,895,526) S 304,398
2006 - 2007 245,653 - 61 (7,806) 9,918 (173,620) 74,206
2005 - 2006 55,484 133 (5,608) 4,426 (27,824) 26,611
2004-2005 27,267 50 (2,439) 4,098 (18,175) 10,801
2003 - 2004 9,206 48 (1,572) 1,975 (6,726) 2,931
2002 - 2003 3,734 - (301) 411 (1,082) 2,762
2001 - 2002& Prior 5,304 (342) 954 (2,079) 3,837
S 346,648 S 12,528,573 S (317,813) S (32,552) S 25,722 S (12,125,032) S 425,546
Property Taxes
Cash Receivable
Distributed as follows: Collections June 30, 2008
General Fund:
Current $ 10,919,263 $ 279,345
Prior years' levies 195,223 111,618
Total General Fund 11,114,486 390,963
Debt Service Funds:
Current 994,130 25,053
Prior years' levies 16,416 9,530
Total Debt Service Funds 1,010,546 34,583
Total $ 12,125,032 $ 425,546
NOTE: Taxes, other than property taxes, are included in Taxes revenue on the
Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balance (page 35).
126
CITY OF TIGARD, OREGON
SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS
For the fiscal year ended June 30, 2008
Bond Transactions Interest Transactions
Outstanding Matured/ Outstanding
Bancroft Bonds Original Issue June 30, 2007 Additions Called Paid June 30, 2008 Matured Paid
Issued June 27, 2002 $ 1,307,969 $ 829,147 $ $ 43,800 $ (43,800) $ 785,347 5 60,305 5 (60,305)
Issued December 3, 2003 1,947,678 588,277 72,394 (72,394) 515,883 20,119 (20,119)
$ 1,417,424 $ $ 116,194 $ (116,194) $ 1,301230 $ 80,424 $ (80,424)
General Obligation Bonds
Issued December 4, 2002 $ 13,000,000 $ 11,066,369 $ $ 518,411 $ (518,411) $ 10,547,958 $ 454,403 $ (454,403)
127
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF LONG-TERM NOTES PAYABLE
June 30, 2008
Issued -January 23, 2002
3.00% to 4.350/o
Original Issue - $ 2,290,248
Total
Payment Coupon Debt
Date Principal Interest Rate Service
January 1, 2009 $ 235,690 $ 42,363 4.00% $ 278,053
January 1, 2010 247,318 32,935 4.10% 280,253
January 1, 2011 259,053 22,795 4.25% 281,848
January 1, 2012 270,925 11,785 4.35% 282,710
Totals $ 1,012,986 $ 109,878 $ 1,122,864
128
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF BANCROFT IMPROVEMENT BONDS
June 30, 2008
Issued Issued
June 27, 2002 December 3, 2003
Year of Total Requirements 7.25% 3.90%
Maturity Principal Interest Principal Interest Principal Interest
2008-2009 $ 118,891 $ 72,887 $ 45,400 $ 56,370 $ 73,491 $ 16,517
2009-2010 125,085 66,524 48,700 52,901 76,385 13,623
2010-2011 131,693 59,789 52,300 49,174 79,393 10,615
2011-2012 138,720 52,661 56,200 45,173 82,520 7,488
2012-2013 146,071 45,115 60,300 40,877 85,771 4,238
2014-2018 507,223 128,842 388,900 127,981 118,323 861
2019-2020 133,547 8,714 133,547 8,714 - -
Totals $ 1,301,230 $ 434,532 $ 785,347 $ 381,190 $ 515,883 $ 53,342
129
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF GENERAL OBLIGATION BONDS
June 30, 2008
Fiscal Issued: December 4, 2002
Year of Total Debt 3.00% to 4.75%
Maturity Requirement Principal Interest
2008-2009 974,913 536,063 438,850
2009-2010 976,563 553,795 422,768
2010-2011 976,383 571,890 404,493
2011-2012 974,758 590,281 384,477
2012-2013 977,118 613,891 363,227
2013-2014 963,993 623,787 340,206
2014-2015 972,518 656,991 315,527
2015-2016 975,719 686,471 289,248
2016-2017 972,348 711,246 261,102
2017-2018 972,273 741,399 230,874
2018-2019 975,367 776,929 198,438
2019-2020 976,342 812,866 163,476
2020-2021 975,291 849,207 126,084
2021-2022 972,157 885,985 86,172
2022-2023 981,244 937,157 44,087
14,616,987 10,547,958 4,069,029
130
y ~
STATISTICAL SECTION
This part of the City of Tigard's comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, required
supplementary information, and supplementary information says about the City's overall financial
health.
Contents Page
Financial Trends 132 -139
These schedules contain trend information to help the reader understand how financial
performance has changed over time.
Revenue Capacity 140 - 143
These schedules contain information to help the reader assess the City's most significant
local revenue source, property taxes.
Debt Capacity 144 -153
These schedules present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information 154 - 156
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the City's financial activities take place.
Operating Information 157 -159
These schedules contain service and infrastructure data to help the reader understand how
the information in the City's financial report relates to the services the City provides and the activities it
performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial
reports for the relevant year. The City implemented GASB Statement 34 in fiscal year 2003 and implemented GASB
Statement 44 in fiscal year 2006.
TIGARD
132
CITY OF TIGARD, OREGON
NET ASSETS BY COMPONENT
for the last six fiscal years
(accrual basis of accounting)
Fiscal Year
2004 2004 2005
Governmental activities
Invested in capital assets, net of related debt $ 165,584,303 $ 167,289,278 $ 169,543,524
Restricted 2,529,038 1,782,382 1,367,179
Unrestricted 21,057,629 21,197,594 21,178,146
Total governmental activities net assets 189,170,970 190,269,254 192,088,849
Business-type activities
Invested in capital assets, net of related debt 48,011,698 51,186,594 51,861,963
Restricted 5,816,599 5,548,698 3,761,976
Unrestricted 18,755,869 19,877,044 20,374,983
Total business-type activities net assets 72,584,166 76,612,336 75,998,922
Primary government
Invested in capital assets, net of related debt 213,596,001 218,475,872 221,405,487
Restricted 8,345,637 7,331,080 5,129,155
Unrestricted 39,813,498 41,074,638 41,553,129
Total primary government net assets $ 261,755,136 $ 266,881,590 $ 268,087,771
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
Source: Comprehensive Annual Financial Report of the City.
133
Fiscal Year
2006 2007 2008
$ 168,577,473 $ 173,401,138 $ 177,656,465
2,812,994 1,490,484 1,992,734
21,685,865 25,234,231 23,053,474
193,076,332 200,125,853 202,702,673
58,058,208 64,000,824 68,398,209
3,761,976 3,783,324 3,783,324
20,480,106 18,463,817 15,826,866
82,300,290 86,247,965 88,008,399
226,635,681 237,401,962 246,054,674
6,574,970 5,273,808 5,776,058
42,165,971 43,698,048 38,880,340
$ 275,376,622 $ 286,373,818 $ 290,711,072
134
CITY OF TIGARD, OREGON
CHANGES IN NET ASSETS
for the last six fiscal years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005
Expenses
Governmental activities
Community services $ 8,058,670 $ 8,744,613 $ 10,253,764
Public works 1,890,644 2,735,212 2,172,874
Development services 3,311,058 3,791,317 4,224,696
Policy and administration 3,548,649 6,175,917 6,166,577
Interest on long-term debt 602,291 947,848 716,899
Total governmental activities expenses 17,411,312 22,394,907 23,534,810
Business-type activities
Sewer 901,779 945,102 1,297,582
Storm Water 1,056,795 1,090,550 1,374,459
Water 5,325,045 5,555,590 8,200,928
Total business-type activities program expenses 7,283,619 7,591,242 10,872,969
Total primary government expenses 24,694,931 29,986,149 34,407,779
Program Revenues
Governmental activities
Charges for services:
Community services - 114,454 119,513
Public works - 603,352 1,741,747
Development services 73,332 2,928,733 3,335,125
Policy and administration - 822,177 908,053
Operating grants and contributions 133,253 252,805 285,888
Capital grants and contributions - - -
Total governmental activities program revenues 206,585 4,721,521 6,390,326
Business-type activities
Charges for services:
Sewer 1,923,596 1,809,032 1,601,113
Storm Water 1,246,809 1,156,863 1,156,220
Water 6,877,765 7,202,910 7,762,153
Capital grants and contributions - - -
Total business-type activities program revenues 10,048,170 10,168,805 10,519,486
Total primary government program revenues $ 10,254,755 $ 14,890,326 $ 16,909,812
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
Source: Comprehensive Annual Financial Report of the City.
135
Fiscal Year
2006 2007 2008
11,241,521 $ 11,656,248 $ 13,678,913
3,078,772 2,383,009 2,373,710
4,669,452 4,714,636 5,186,834
7,447,828 4,398,213 3,992,478
935,359 153,319 354,664
27,372,932 23,305,425 25,586,599
1,454,150 1,461,458 1,963,223
1,391,158 1,533,391 1,585,105
7,291,602 7,452,480 6,792,833
10,136,910 10,447,329 10,341,161
37,509,842 $ 33,752,754 $ 35,927,760
146,798 151,448 168,232
2,165,451 1,866,123 1,377,855
4,463,283 3,982,018 2,331,834
1,015,976 1,146,301 1,524,653
133,509 1,537,714 739,171
- 2,596,223 3,103,521
7,925,017 11,279,827 9,245,266
1,555,358 1,641,740 2,322,462
1,176,816 1,190,521 1,593,097
6,953,809 6,336,186 7,002,872
6,077,864 3,886,120 136,331
15,763,847 13,054,567 11,054,762
23,688,864 $ 24,334,394 $ 20,300,028
136
CITY OF TIGARD, OREGON
CHANGES IN NET ASSETS
for the last six fiscal years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005
Net (Expense) Revenue
Governmental activities $ (17,204,727) $ (17,613,386) $ (17,144,484)
Business-type activities 2,764,553 2,577,563 716,899
Total primary government net expenses $ (14,440,174) $ (15,035,823) $ (16,427,585)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes $ 10,472,108 $ 9,763,281 $ 10,273,332
Franchise taxes 2,567,881 2,431,324 2,670,050
Restricted intergovernmental revenues (excluding grants) - - 31447,895
Unrestricted intergovernmental revenues 8,778,951 5,204,135 1,430,206
Interest earnings 912,288 890,785 859,057
Miscellaneous (90,350) 422,145 283,539
Total governmental activities 22,640,878 18,711,670 18,964,079
Business-type activities:
Interest earnings 593,484 426,853 604,977
Miscellaneous 248,885 23,754 135,092
Total business-type activities 842,369 450,607 740,069
Total primary government $ 23,483,247 $ 19,162,277 $ 19,704,148
Change in Net Assets
Governmental activities $ 5,436,151 $ 1,098,284 $ 1,819,595
Business-type activities 3,606,922 3,028,170 386,586
Total primary government $ 9,043,073 $ 4,126,454 $ 2,206,181
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
Source: Comprehensive Annual Financial Report of the City.
137
Fiscal Year
2006 2007 2008
$ (19,447,915) $ (12,025,598) $ (16,341,333)
5,626,937 2,607,238 713,601
$ (13,820,978) $ (9,418,360) $ (15,627,732)
$ 10,804,524 $ 11,552,817 $ 9,133,664
3,042,187 3,835,007 4,551,169
3,288,530 - -
1,863,706 1,836,291 2,912,647
922,508 1,548,735 1,503,619
513,943 302,269 817,054
20,435,398 19,075,119 18,918,153
580,004 1,050,352 1,039,593
94,427 147,310 150,015
674,431 1,197,662 1,189,608
$ 21,109,829 $ 20,272,781 $ 20,107,761
$ 987,483 $ 7,049,521 $ 2,576,820
6,301,368 3,804,900 1,903,209
$ 7,288,851 $ 10,854,421 $ 4,480,028
138
CITY OF TIGARD, OREGON
FUND BALANCES OF GOVERNMENTAL FUNDS
for the last six fiscal years
(modified accrual basis of accounting)
Fiscal Year
2004 2004 2005 2006 2007 2008
General Fund
Reserved 58,523 $ 69,069 $ 54,632 $ 20,291 $ 209,378 $ -
Unreserved 7,878,589 8,343,762 8,131,112 8,368,793 9,716,643 10,794,057
Total general fund 7,937,112 $ 8,412,831 $ 8,185,744 $ 8,389,084 $ 9,926,021 $i 10,794,057
All other governmental funds
Reserved 15,612,154 7,198,519 4,821,174 $ 2,719,998 $d - $p -
Unreserved, reported in:
Special revenue funds 8,355,147 7,282,391 9,253,467 10,208,277 13,445,092 12,481,406
Debt service funds - - - 1,811,861 2,027,633 682,960
Capital projects funds 9,050 8,971 1,589,018 1,087,826 1,309,774
Total all other governmental funds 23,976,351 5 14,489,881 $ 14,074,641 $ 16,329,154 16,560,551 14,474,140
*Fiscal Year 2002-03 was the first Year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
Source: Comprehensive Annual Financial Report of the Cite.
139
CITY OF TIGARD, OREGON
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
for the last six fiscal years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006 2007 2005
REVENUES
Taxes $ 10,453,992 $ 9,775,325 $ 10,334,295 $ 10,817,886 $ 11,553,044 $ 12,137,977
Franchise fees 2,567,881 2,431,324 2,670,050 3,042,187 3,835,007 4,551,169
Special assessments 542,816 568,971 373,141 1,421,765 163,379 120,678
Licenses and permits 3,505,499 3,668,335 4,442,222 4,852,719 3,011,348 1,871,841
Intergovernmental revenues 4,837,982 5,456,940 5,134,991 5,285,744 5,970,228 7,807,667
Charges for service 1,539,676 1,819,907 2,354,372 2,689,485 3,989,491 3,469,358
Fines and forfeitures 480,963 613,785 646,406 702,469 850,335 847,069
Interest eamings 902,312 880,070 836,359 903,637 1,507,065 1,475,808
Miscellaneous 424,525 420,390 280,411 502,951 283,712 747,532
Total revenues 25,255,646 25,635,047 27,072,247 30,218,843 31,163,609 33,029,099
EXPENDITURES
Current operating:
Community services 8,692,327 9,014,200 10,750,344 11,377,118 11,918,362 13,801,110
Public works 2,236,753 2,104,617 2,172,875 2,273,569 2,383,009 2,757,289
Development services 3,628,238 3,891,491 4,316,517 4,709,433 4,772,780 5,191,797
Pohcv and administration 3,884,883 4,051,476 4,334,147 4,564,400 4,717,967 397,510
Citywide support - - - - 23,000 -
Debt service:
Principal 2,344,496 1,300,979 1,285,275 1,526,286 166,571 922,907
Interest 302,674 951,072 748,417 697,305 630,916 454,403
Capital outlay 6,613,827 13,210,578 4,106,999 2,352,123 3,543,422 6,319,092
Total expenditures 27,703,198 34,524,413 27,714,574 27,500,234 28,156,027 29,844,108
Excess (deficiency) of revenues
over (under) expenditures (2,447,552) (8,889,366) (642,327) 2,718,609 3,007,582 3,184,991
OTHER FINANCING SOURCES (USES)
Proceeds from bond / long-term note 14,509,175 1,947,678 - - - -
Transfers in 3,747,649 2,581,668 2,893,435 4,046,802 2,667,149 4,896,127
Transfers out (3,747,649) (2,581,668) (2,893,435) (4,046,802) (2,667,149) (9,299,491)
Total other financing sources (uses) 14,509,175 1,947,678 - - - (4,403,364)
Net change in fund balances $ 12,061,623 $ (6,941,688) $ (642,327) $ 2,718,609 $ 3,007,582 $ (1,218,373)
Debt service as a percentage of noncapital expenditures 1435'% 11.81'% 9.431% 9.70'% 335 6.22
*Fiscal Near 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City ofTigard.
Source: Comprehensive Annual Financial Report of the City.
140
CITY OF TIGARD, OREGON
GOVERNMENT-WIDE REVENUES
For the last six fiscal years*
Program Revenues General Revenues
Gain (Loss)
Fiscal Charges Operating Capital on Disposition
Year Ended for Grants and Grants and Intergoverrunental Interest Donated of Capital
June 30 Services Contributions Contributions Tax Franchise Taxes Revenues Earnings Assets Assets Miscellaneous Total
2003 14,107,966 133,253 87,760 10,472,108 2,567,881 4,704,729 1,505,772 (27,850) (491,023) 677,408 33,738,004
2004 16,561,227 252,805 6,077,864 9,763,281 2,431,324 5,204,135 1,317,638 - - 445,899 42,054,173
2005 16,623,924 285,888 - 10,273,332 2,670,050 4,878,101 1,464,034 - - 418,631 36,613,960
2006 17,477,491 133,509 6,077,864 10,804,524 3,042,187 5,152,236 1,502,512 - - 608,370 44,798,693
2007 7,145,890 1,537,714 2,596,223 11,552,817, 3,835,007 1,836,291 2,599,087 - - 449,579 31,552,608
2008 5,402,574 739,171 3,103,521 12,237,185 4,551,169 2,912,647 1,503,619 - - (2,286,467) 28,163,419
*Fiscal year 2002-03 was the first year that the new requirements of GASB 34 were implemented at the City of Tigard.
Source: Comprehensive Annuvt E'inanci vl Report of the Cin-.
141
CITY OF TIGARD, OREGON
GOVERNMENT-WIDE EXPENSES BY FUNCTION
For the last five fiscal year*
Fiscal Interest on
Year Ended Community Development Policy and Long-Term Storm
June 30 Services Public Works Services Administration Debt Sewer Water Water Total
2003 8,058,670 1,890,644 3,311,058 3,548,649 602,291 901,779 1,056,795 5,325,045 24,694,931
2004 8,744,613 2,735,212 3,791,317 6,175,917 947,848 945,102 1,080,550 5,555,590 29,976,149
2005 10,253,764 2,172,874 4,224,696 6,166,577 716,899 1,297,582 1,374,459 8,200,928 34,407,779
2006 11,241,521 3,078,772 4,669,452 7,447,828 935,359 1,454,150 1,391,158 7,291,602 37,509,842
2007 11,656,248 2,383,009 4,714,636 4,398,213 153,319 1,461,458 1,533,391 7,452,480 33,752,754
2008 13,678,913 2,373,710 2,373,710 3,992,478 354,664 1,963,223 1,585,105 6,792,833 33,114,636
*Fiscal year 2002-03 was the first year that the new requirements of GASB 34 were implemented at the City of Tigard.
Source: Comprehensive Annual Financial Report of the City.
142
CITY OF TIGARD, OREGON
GENERAL GOVERNMENTAL REVENUES BY SOURCES -
BUDGETARY BASIS
For the last ten fiscal years
Fiscal Licenses Inter- Charges
Year Ended Franchise and governmental For Fines and Miscellaneous
June 30 Taxes Fees Permits Revenues Services Forfeitures Revenues* Total
1999 8,617,809 1,970,740 2,780,779 4,715,386 449,997 390,967 4,082,654 23,008,332
2000 7,876,219 1,960,768 2,271,148 4,658,795 675,323 371,594 3,404,178 21,218,025
2001 8,504,271 2,063,978 4,057,117 4,760,711 732,797 367,732 1,730,569 22,217,175
2002 9,018,360 2,674,388 3,147,960 4,778,451 443,418 415,760 1,359,360 21,837,697
2003 10,453,992 2,567,881 3,505,499 4,837,982 865,242 480,963 1,869,653 24,581,212
2004 9,775,325 2,431,324 3,668,335 5,456,940 1,148,271 613,785 1,858,371 24,952,351
2005 10,334,295 2,670,050 4,442,222 5,134,991 1,743,493 646,406 1,489,909 26,461,366
2006 10,817,886 3,042,187 4,852,719 5,285,744 2,689,485 702,469 2,828 353 30,218,843
2007 11,553,044 3,835,007 3,011,348 5,970,228 3,989,491 850,335 1,954,156 31,163,609
2008 12,137,977 4,551,169 1,871,841 847,069 1,475,808 847,069 2,344,018 24,074,951
* Includes special assessments collections and private donations.
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
143
CITY OF TIGARD, OREGON
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION -
BUDGETARY BASIS
For the last ten fiscal years
City-Wide
Support
Public Works Functions,
Fiscal and Capital
Year Ended Community Community Policy and Projects Debt
June 30 Services Development Administration and Other Service Total
1999 7,778,333 4,476,564 2,100,829 4,349,185 6,850,522 25,555,433
2000 8,322,224 4,738,142 2,287,819 3,902,719 2,699,338 21,950,242
2001 8,696,210 4,832,637 2,593,816 3,894,954 672,656 20,690,273
2002 8,372,801 5,927,523 309,559 2,700,075 2,785,404 20,095,362
2003 8,692,327 5,864,991 279,753 2,971,446 2,647,170 20,455,687
2004 9,014,200 5,996,108 821,553 13,210,578 4,310,054 33,352,493
2005 10,750,344 6,489,391 1,017,764 4,106,999 2,033,691 24,398,189
2006 11,377,118 3,983,002 4,564,400 2,352,123 2,223,591 24,500,234
2007 11,918,362 7,155,789 4,717,967 3,566,422 2,297,487 29,656,027
2008 13,801,110 7,949,086 397,510 6,319,092 1,377,310 29,844,108
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
144
CITY OF TIGARD, OREGON
MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY
For the last ten fiscal years
Fiscal Assessed Value Assessed to
Year Public Total Estimated Value as a
Ended Real Personal Utility Total Direct Real Market Percentage
June 30 Property Property Property Assessed Value Tax Rate Value (RMV) of RMV
1999 2,556,684,350 212,026,836 100,949,648 2,869,660,834 3.10 3,601,609,341 79.68%
2000 2,694,978,680 224,934,987 113,115,415 3,033,029,082 2.59 3,938,205,819 77.02%
2001 2,903,403,430 229,530,723 121,662,548 3,254,596,701 2.60 4,354,132,334 74.75%
2002 3,085,457,460 221,564,523 163,556,880 3,470,578,863 2.58 4,624,009,037 75.06`%
2003 3,227,082,340 215,829,652 178,798,982 3,621,710,974 2.90 4,804,794,161 75.38%
2004 3,376,409,604 206,038,692 171,911,103 3,754,359,399 2.68 5,151,890,520 72.87%
2005 3,543,033,334 204,589,409 160,586,232 3,908,208,975 2.70 5,402,433,125 72.34'Vo
2006 3,717,827,074 210,841,242 159,236,470 4,087,904,786 2.72 5,913,857,305 69.12%
2007 3,932,173,130 229,401,995 183,090,030 4,344,665,155 2.73 7,152,421,012 60.74%
2008 4,104,676,710 234,099,260 233,581,850 4,572,357,820 2.74 7,449,594,674 61.38%
Assessed Value by Type
for the fiscal year ended 2007
Assessed Value by Type
for the fiscal year ended 2007
Real Property
91%
Personal Property
IE 5%
Public Utility Property
4%
145
CITY OF TIGARD, OREGON
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(Dollars per $1,000 of Assessed Value rounded to the nearest cent)
For the last ten fiscal years
Tigard/ Washington
Fiscal Metzger Tualatin Beaverton Tualatin County
Ycar Water School School Vallev Rural Fire Portland Other
Ended District City of Washington District District Fire & Rescue District Community Taxing
June 30 Combined Tigard Cot.lnnr No. 23-j No. 48 District No. 2 College Agencies Total
1999 0.28 3.10 2.57 6.65 6.17 1.53 1.15 0.35 0.81 22.61
2000 0.21 2.59 2.54 6.31 6.19 1.56 1.29 0.36 0.70 21.75
2001 0.25 2.60 2.53 7.24 6.12 1.59 1.30 0.37 0.70 22.70
2002 0.23 2.58 2.96 7.04 6.37 1.83 1.31 0.55 0.69 23.56
2003 0.23 2.90 2.91 7.90 6.56 1.82 1.12 0.49 0.63 24.56
2004 0.22 2.68 2.90 7.88 8.01 1.83 1.12 0.51 0.62 25.77
2005 0.13 2.70 2.87 7.79 6.60 1.83 1.12 0.51 0.62 24.16
2006 - 2.72 2.84 7.85 7.98 1.82 1.12 0.50 0.63 25.44
2007 2.73 2.45 7.67 6.29 1.82 1.12 0.49 0.60 23.16
2008 2.74 2.44 7.59 6.74 1.56 1.12 0.28 0.61 23.08
1'ases 1, -ied map be composed of three types of leeies (1) a ba e operating l vp, (2) a special operating leer approv d by the voters in the district and (3) a debt ser,ire levy. Each
district r ith onctanding General OI ligation bonded debt is required to le taxcs suthcient .vith oth salable foods, to meet principal and interest payments s hen due.
,w operating le,ic, were c n erted to a permanent rate be the passage of measure 50 in 1997. Permanent rates can not be changed Prior to Measure 50, rates were dependent on
both the le, v and assessed value.
Assessment and tas rolls are prepared and maintained by lX a L ington Cor t; for all tavnn districts with territory in the Counm the County collects all ta- s against properq in the
Coonq (caccpt assessments for improvements charged to benefited properq- and distrib tes taxes collected at least monthly. N - charges arc made to the ta,ing districts for these
senices.
NOTE: - Not all ta_cing districts are charged on each parcel of properq, actual rates on ta_, 6iUs are a combination of the above depending upon the location of the parcel and the
school district and s er and water district boundaries 'l or l clapping t_ rates for properq in "1 igard in 3004 ranged from $12.11/$1,000 to $16.64/$1,000.
Source W ashington Coumv Department of Assessment md'l'-ti n.
146
CITY OF TIGARD, OREGON
PRINCIPAL PROPERTY TAXPAYERS
For current and nine years ago
2008 1999
Percentage Percentage
Taxable of Total City Taxable of Total City
Assessed Assessed Assessed Assessed
Taxoaver Value Rank Value Value Rank Value
Pacific Realty Associates 166,182,644 1 3.63% 135,844,128 1 3.77%
Washington Square LLC 107,197,341 2 2.34% 113,593,797 2 3.15%
Lincoln Center LLC 76,653,130 3 1.68%
Verizon Northwest Inc. 54,582,283 4 1.19%
Sprint Nextel Corp. 41,797,708 5 0.91%
Calwest Industrial Holdings LLC 34,961,527 6 0.76%
Portland General Electric 28,463,317 7 0.62% 18,501,447 6 0.51%
Northwest Natural Gas 24,785,115 8 0.54% 17,101,729 7 0.47%
Constance Robinson 23,188,485 9 0.51% 17,309,604 8 0.48%
Nesbitt Portland Property LLC 22,235,534 10 0.49%
SF Oregon Limited - - 68,937,246 3 1.91%
Spieker Properties 23,342,951 4 0.65%
Portland Hotel Associates 24,099,090 5 0.67%
Costco/Wholesale 12,144,767 9 0.34%
FIG Holding Company - - 10,854,806 10 0.30%
$ 230,013,969 5.03% $ 192,291,640 5.34%
Source: Washington County Assessment & Taxation records.
147
CITY OF TIGARD, OREGON
PROPERTY TAX LEVIES AND COLLECTIONS
For the last ten fiscal years
Percent Percent
Total Tax Delinquent
Fiscal Total Percent Delinquent Total Collections Outstanding Taxes
Year Ended Tax Current Tax of Levy Tax Tax To Tax Delinquent To Tax
June 30 Levy Collections Collections Collections Collections Levy Taxes Levy
1999 S 8,915,821 5 8,400,875 94.22% S 227,801 S 8,628,676 96.78% 418,484 4.69%
2000 7,881,754 7,385,015 93.70°, 270,169 7,655,184 97.13°/ 395,287 5.02%
2001 8,479,977 8,017,056 94.54°/ 241,309 8,258,365 9739°6) 365,837 4.31%
2002 8,984,987 8,498,029 94.58°/, 241,336 8,739,365 97.27/ 373,584 4.16%
2003 10,521,836 9,942,473 94.49°, 252,892 10,195,365 96.90%394,897 3.75°,
2004 10,072,155 9,519,258 94.51°, 249,358 9,768,616 96.99°, 388,113 3.85°,
2005 10,568,724 10,032,595 94.93°, 293,729 10,326,324 97.71%, 330,296 3.13%
2006 11,115,136 10,571,115 95.11°, 252,844 10,823,959 97.38°, 310,629 2.79°,
2007 11,871,043 11,514,034 96.99% 210,217 11,724,251 98.76% 346,648 2.92%
2008 12,515,279 11,895,526 95.05°, 121,148 12,125,032 96.88°, 425,546 3.40`Y„
Taxes are levied as of July 1 each year and are payable in three installments, without interest, on November 15, February 15, and Nlay
15. Interest is charged at the rate of 1°, per month on delinquent taxes. Tax liens are foreclosed after three year's delinquencies.
Taxpayers receive a discount of 3°, for payment in full by November 15 and 2% for payment of two thirds of the total taxes due.
City Property Taxes Levied
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
tift
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
148
CITY OF TIGARD, OREGON
SPECIAL ASSESSMENT COLLECTIONS
For the last ten fiscal years
Fiscal Year Current Ratio of Total
Ended Assessments Assessments Collections Outstanding
June 30 Due (1) Collected (2) to Amount Due Assessments
1999 $ 1,565,576 $ 2,056,305 131.34% 4,613,840
2000 329,174 971,414 295.11% 3,761,444
2001 234,907 290,268 123.57% 3,494,465
2002 240,894 343,642 142.65% 4,621,388
2003 185,975 542,816 291.88% 4,150,052
2004 637,900 557,911 87.46% 3,471,643
2005 598,804 373,141 62.31% 3,074,031
2006 821,321 1,421,765 173.11% 1,639,875
2007 937,916 163,379 17.42% 1,461,838
2008 116,194 120,678 103.86% -
(1) This amount is equal to the matured principal on Bancroft improvement bonds.
(2) Represents collections of current assessments for payment of Bancroft improvement bonds as well
as assessment collections on projects for which such bonds have not been issued.
Source: City assessment records
149
CITY OF TIGARD, OREGON
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONG-TERM DEBT TO
TOTAL GENERAL GOVERNMENTAL EXPENDITURES
For the last ten fiscal years
Total Percent of Debt
Fiscal Year Total General Service to
Ended Debt Governmental Total General
June 30 Principal Interest Service Expenditures Expenditures
1999 6,190,576 659,946 6,850,522 25,555,433 26.81%
2000 2,487,352 211,986 2,699,338 21,950,242 12.30%
2001 2,408,085 207,914 2,615,999 22,638,451 11.56%
2002 4,195,966 325,036 4,521,002 20,095,362 22.50%
2003 2,351,917 254,833 2,606,750 20,455,687 12.74%
2004 3,358,982 929,462 4,288,444 34,524,413 12.42%
2005 1,285,275 748,817 2,034,092 27,714,574 7.34%
2006 1,526,286 697,305 2,223,591 27,500,234 8.09%
2007 1,666,571 630,916 2,297,487 29,656,027 7.75%
2008 922,907 454,403 1,377,310 29,844,108 4.62%
Source: Comprehensive Annual Financial Reports of the City.
(1) Includes bond anticipation notes principal and interest.
(2) Includes bond anticipation notes interest and certificates of participation principal and interest
150
CITY OF TIGARD, OREGON
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND
NET BOUNDED DEBT PER CAPITA
For the last ten fiscal years
Gross
General Ratio of
Obligation Less Debt Net Bonded
Fiscal Year Bonded Service Net Debt to Net Bonded
Ended Assessed Debt Out- Monies Bonded Assessed Debt Per
June 30 Population Value Standing Available Debt Value Capita
1999 37,200 3,601,609,341 2,991,249 792,529 2,198,720 0.06% 59.11
2000 39,672 3,033,029,082 2,442,075 1,492,889 949,186 0.03% 23.93
2001 42,260 4,354,132,334 1,982,168 1,609,030 373,138 0.01% 8.83
2002 43,040 3,470,578,863 2,824,243 2,154,758 669,485 0.02% 1555
2003 44,070 4,804,794,161 15,393,293 2,270,985 13,122,308 0.27% 297.76
2004 44,650 3,754,359,399 16,239,519 1,713,313 14,526,206 0.39% 325.33
2005 45,500 3,908,208,975 15,164,807 1,312,547 13,852,260 0.35% 304.45
2006 46,300 4,087,904,786 11,572,205 1,849,770 9,722,435 0.24% 209.99
2007 46,400 4,344,665,155 11,066,369 1,849,770 9,216,599 0.21% 198.63
2008 46,715 4,344,665,155 10,547,958 296,805 10,251,153 0.24% 219.44
Excludes bond anticipation notes payable.
Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of
Assessment and Taxation.
151
CITY OF TIGARD, OREGON
COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT
June 30, 2008
Percent Amount
Applicable Applicable
Net Debt Inside City Inside City
jurisdiction Outstanding of Tigard of Tigard
Tigard/Tualatin School District #23 J $ 138,870,000 50.0312% $ 69,478,327
Tri-Met 44,395,000 3.8455% 1,707,210
Metro 205,626,671 3.8230% 7,861,108
Beaverton School District #48 377,140,000 3.7495% 14,140,864
Portland Community College 44,405,000 4.8553% 2,155,996
Washington County 36,780,000 11.1846% 4,113,696
Tualatin Valley Fire & Rescue District 1,475,000 12.4000% 182,900
Sub-Total of Overlapping Debt 848,691,671 99,640,101
City of Tigard 10,547,958 100.0000% 10,547,958
Total for Overlapping Debt $ 859,239,629 $ 110,188,059
Source: Oregon State Treasury Debt Management Division
152
CITY OF TIGARD, OREGON
COMPUTATION OF LEGAL DEBT MARGIN
For the last ten fiscal years
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Debt limit $ 108,048,280 $ 118,146,175 $ 130,623,970 $ 138,720,271 $ 144,143,825 $ 154,556,716 $ 162,072,994 $ 122,637,144 $ 130,339,955 $ 137,170,735
Total net debt applicable to limit 905,000 695,000 245,000 245,000 19,526,586 14,428,648 12,060,540 9,289,259 9,724,836 10,547,958
Legal debt margin S 107,143,280 S 117,451,175 S 130,378,970 S 138,475,271 S 124,617,239 S 140,128,068 S 150,012,454 S 113,347,885 S 120,615,119 S 126,622,777
Total net debt applicable to the limit
as a percentage of debt limit 0.84% 0.591V11 0.19% 0.18% 13.55% 9.34% 7.44% 7.57% 7.46% 7.69%
153
CITY OF TIGARD, OREGON
RATIO OF DEBT BY TYPE
For the last ten fiscal years
(1)
Fiscal Year General Long-Term Percentage (2)
Ended Obligation Bancroft Note Payable Total of Personal Per
June 30 Population Bonded Debt Bonded Debt Debt Government Income Capita
1999 37,200 2,991,249 2,086,249 - 5,077,498 0.49% 136.49
2000 39,672 2,442,075 1,747,075 - 4,189,150 0.40% 105.59
2001 42,260 1,982,168 1,512,168 - 3,494,336 0.34% 82.69
2002 43,040 2,824,243 2,579,243 2,290,248 7,693,734 0.74% 178.76
2003 44,070 15,393,293 2,393,293 2,091,727 19,878,313 1.9111/1, 451.06
2004 44,650 16,239,519 3,703,071 1,892,200 21,834,790 2.09% 483.82
2005 45,500 15,164,807 3,104,267 1,681,637 19,950,711 N/A 446.82
2006 46,300 11,572,205 2,282,946 1,465,007 15,320,158 N/A 330.10
2007 46,400 11,066,369 1,345,030 1,242,187 13,653,586 N/A 294.26
2008 46,715 10,547,958 1,301,230 1,012,986 12,862,174 N/A 275
(1) See page 154 for personal income data
(2) Per capita data is using Tigard's population
N/A - Not available
Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of
Assessment and Taxation.
154
CITY OF TIGARD, OREGON
DEMOGRAPHICS STATISTICS
For the last ten fiscal years
(4)
Assessed Total (2)
Value Personal Unemployment
of Taxable (3) (4) Income Rate
Fiscal Year (1) Property School Per Capita (thousands Portland
Ended June 30 Population Per Capita Enrollment Income * of dollars) * Metro Area
1999 37,200 74,537 11,080 28,803 1,071,473 4.50%
2000 39,672 76,453 11,145 27,974 1,109,793 4.10%
2001 42,260 77,014 11,500 27,128 1,146,445 4.50%
2002 43,040 80,636 11,785 26,584 1,144,177 7.500/,
2003 44,070 82,181 11,686 26,145 1,152,206 8.80%
2004 44,650 83,190 11,831 25,734 1,161,384 6.80%
2005 45,500 87,530 11,653 N/A N/A 6.30%
2006 46,300 88,081 12,134 N/A N/A 6.30%
2007 46,400 93,635 12,100 N/A N/A 4.80%
2008 46,715 97,878 12,451 N/A N/A 5.30%
Sources of Information:
(1) State of Oregon, Department of Administrative Services
(2) U.S. Bureau of Labor Statistics
(3) Tigard/Tualatin School District #23 J - City student totals not available
(4) Washington State University - Northwest Income Indicators Project
* - Personal income data for Tigard was not available so data was calculated using the ratio of Tigard's population
to Washington Countv's total population. The ratio was then applied to total personal income for Washington County
to arrive at an estimated personal income for the City of Tigard.
Population and School Enrollment Trends
50,000
45.000
40,000
35.000
30.000
25.000
20.000
15.000
10.(:00
5,COO
0
2000 2001 2002 2003 2004 2005 2006 2007 2008
+Seriesl t Series2
155
CITY OF TIGARD, OREGON
PRINCIPAL EMPLOYERS
For current year and nine years ago
2008 1999
Percentage Percentage
of total City of total City
Employer Employees Rank employment Employees Rank employment
HSBC Card Services 1,116 1 3.48% - -
Tigard - Tualatin School District 779 2 2.43% - -
Macy's 704 3 2.19% - -
Nordstrom 461 4 1.44%
Oregon Public Employees Retirement 396 5 1.23% - -
Providence Health System 377 6 1.17% - -
Costco Wholesale Corporation 300 7 0.93% - -
City of Tigard 283 8 0.88% - -
Rockwell Collins Inc. 264 9 0.82% - -
The Cheesecake Factory 250 10 0.78% - -
4,930 15.35% - -
Source: City of Tigard Adopted Budget and Tigard Chamber of Commerce.
Number of employees for 1999 data was unavailable from the Tigard Chamber of Commerce
156
CITY OF TIGARD, OREGON
PROPERTY VALUE AND CONSTRUCTION
For the last ten fiscal years
Commercial Residential
Fiscal Year Construction (1) Construction (1)
Ended Number of Number of
June 30 Permits Value Permits Value
1999 18 26,772,534 229 37,876,657
2000 22 55,244,410 198 (2) 37,202,497
2001 23 47,262,611 576 (2) 114,188,480
2002 12 21,583,399 387 (2) 96,339,584
2003 10 22,289,054 375 (2) 104,951,598
2004 17 59,523,557 375 (2) 99,056,117
2005 11 49,645,891 325 (2) 96,002,190
2006 8 50,744,300 299 (2) 100,965,847
2007 9 50,512,736 231 (2) 67,798,361
2008 6 73,614,404 93 (2) 31,810,734
(1) From City of Tigard Building Department. Multi-family permits are included in the
number of permits issued for residential construction.
(2) Residential totals for permits and value include amounts from
Urban/Washington County as well as City of Tigard
157
CITY OF TIGARD, OREGON
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
For the last ten fiscal years
Full-time Equivalent Employees as of June 30
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Function / Program
Community services
Police 69.00 72.00 76.33 75.50 75.00 76.00 77.00 78.00 80.00 93.00
Libran 27.52 29.70 31.00 30.70 30.65 28.90 33.20 33.20 34.20 41.90
Parks maintenance (a) 850 - - - - - - - - -
Public works
Administration 4.00 6.00 6.00 6.50 7.00 7.00 7.85 7.60 7.60 8.85
Parks maintenance (a) - 9.50 950 9.75 10.25 11.00 10.75 10.75 10.75 9.75
Street maintenance 10.50 1150 1150 9.35 9.20 850 8.00 7.00 7.00 7.00
Fleet maintenance 250 3.00 3.00 3.22 3.10 3.25 3.00 2.50 2.50 2.50
Property management 2.50 3.00 3.00 3.38 3.25 3.25 3.25 3.25 3.25 4.25
Development services
Administration 9.00 9.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 3.00
Building inspection 19.00 15.00 12.50 13.50 13.50 16.30 18.30 18.80 1280 17.80
Current planning 6.50 6.50 9.00 9.00 9.00 8.20 8.20 8.20 8.20 10.20
Long range planning 4.00 4.00 4.00 5.00 5.00 5.00 5.00 7.00 8.00 7.00
Engineering 14.50 15.50 15.50 16.00 16.00 15.50 15.50 15.50 10.50 10.50
Development Engineering (b) 5.00 5.00
Downtown Redevelopment (c) 1.00
Polcv and Administration
City management 4.50 5.50 5.80 5.80 5.80 4.00 3.80 3.80 3.80 5.30
Human resources 3.50 3.50 3.50 4.00 4.00 4.00 4.00 4.00 4.00 5.00
Information technology 4.50 4.50 430 8.00 8.00 6.00 6.00 7.00 8.00 7.00
Risk management 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 250
Finance admnistration 1.00 1.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Financial operations 9.00 10.00 10.75 10.80 10.80 10.80 10.80 10.80 10.80 5.50
Utility Billing (d) 6.50
Office services 6.50 7.00 7.00 7.00 7.00 7.30 7.30 7.30 7.30 4.50
City Recorder/ Records (e) 3.00
Municipal court 3.00 3.00 4.00 4.00 3.00 3.00 3.00 3.00 3.00 3.25
Sanitary Sewer 7.00 7.00 7.00 6.93 6.95 7.25 7.75 7.25 7.35 5.35
Storm Sewer 7.00 7.00 7.00 6.92 6.95 7.75 8.25 7.25 6.35 7.10
Water 16.00 17.00 17.00 17.95 18.00 17.00 16.25 16.50 17.30 1630
Total 241.52 252.20 254.88 261.30 260.45 258.00 265.20 266.70 271.70 296.05
Source: City of'figard Finance Department
(a) Parks maintenance was budgeted in Community Services until FY 2001-02 at which time it was moved to the Public Works division.
(b) Development Engineering was budgeted with Capital Construction & Transportation as Engineering until FY 2006-07.
(c) Downtown Redevelopment was budgeted with Long Range Planning until FY 2008-09.
(d) Utility Billing was budgeted with Financial Operations until FY 2008-09.
(e) City Recorder/ Records was budgeted with Office Services until FY 2008-09.
158
CITY OF TIGARD, OREGON
OPERATING INDICATORS BY FUNCTION/PROGRAM
For the last six fiscal years
Fiscal Year
Functions /Programs 2003 2004 2005 2006 2007 2008
Governmental activities:
Community services
Police number of traffic citations issued 6,993 6,815 6,006 6,800 6,979 6,383
Police-number of calls for service 50,403 49,333 53,754 51,062 51,000 51,377
Library-number of items in collection 114,094 115,618 125,570 143,500 156,500 176,210
Library-materials checked out each year 684,475 685,000 728,250 850,000 918,540 1,131,093
Public works
Acres of park land maintained 1,465 170 176 176 180 184
Crack sealing completed annually (linear feet) 150,000 98,000 150,000 151,000 160,000 160,000
Vehicles maintained to industry standard 140 140 144 148 150 153
Development services
Number of inspections (Tigard) 13,000 14,200 21,000 19,550 23,000 23,500
Number of permits (all types) in Tigard 2,760 3,300 3,600 3,351 4,500 4,850
Number of development applications 330 400 430 374 507 450
Policv and administration
Number of job applications 1,000 1,800 1,900 2,000 2,000 2,300
Laptops and computers to maintain 275 325 445 500 540 435
Insured value of City's real property (in millions) $ 25.2 $ 27.9 $ 38.8 $ 40.8 $ 46.2 $ 73.5
Number of utility bills sent 104,014 106,055 109,854 112,775 113,502 115,574
Average fine amount collected $ 53 $ 68 $ 78 $ 97 $ 90 $ 94
Business-type activities:
Sewer
Miles of sewer lines cleaned (annual goal) 47.3 53.2 48.5 50.8 51.6 53.4
Mlles of sewer lines video inspected (annual goal) 20.3 20.7 26.1 21.8 22.1 23.0
Storm Water
Miles of storm sewer lines cleaned 27.8 30.2 13.7 28.5 29.6 43.6
Number of Water Quality facilities 45 60 62 70 73 75
Total number of catch basins cleaned 3,760 3,867 3,915 4,045 4,150 4,915
Water
Number of accounts 16,364 16,712 17,022 17,300 17,400 17,870
Number of main breaks repaired 12 15 10 10 10 20
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
159
CITY OF TIGARD, OREGON
CAPITAL ASSETS STATISTICS BY FUNCTION
For the last five fiscal years
Fiscal Year
Functions /Programs 2003 2004 2005 2006 2007 2008
Governmental activities:
Community services
Police stations 1 1 1 1 1 1
Library buildings 1 1 1 1 1 1
Public works
Number of parks 11 13 13 13 13 13
Acres of park and greenspaces 293.5 347.0 347.0 347.0 348.0 348.0
Miles of streets 142.5 150.0 150.0 150.0 150.0 150.0
Development services
See Note
Policy and administration
City-owned building facilities 4 5 5 5 5 5
Business-type activities:
Sewer
Total miles of sanitary sewer lines 142.0 146.6 148.0 152.8 160.4 160.4
Storm Water
Total miles of storm sewer lines 111.0 110.6 113.0 116.6 130.9 131.0
Number of Water Quality facilities 45 60 62 62 77 77
Water
Water mains in miles 210 210 220 224 225.1 225.1
Number of reservoirs 13 13 13 13 13 13
Source: City of Tigard Finance Department
Note: No capital assets indicators are available for development services functions.
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
160
AUDIT COMMENTS AND
DISCLOSURE REQUIRED BY
STATE REGULATIONS
.
TIGARD
161
CITY OF TIGARD, OREGON
A UDITOR 'S COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS
YEAR ENDED JUNE 30, 2008
Oregon Administrative Rules 162-10-050 through 162-10-320 incorporated in the Minimum Standards for Audits
of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board
of Accountancy, enumerate the financial statements, schedules, comments and disclosures required in audit reports.
The required statements and schedules are set forth in the preceding sections of this report. Required comments
and disclosures related to our audit of such statements and schedules follow.
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of City of Tigard (the City), as of and for the year ended June
30, 2008, which collectively comprise the City's basic financial statements and have issued our report thereon dated
January 29, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United
States of America.
Significant Accounting Policies
The significant accounting policies followed in preparing the City's financial statements are summarized in the
notes to the basic financial statements.
Organization and Fund Structure
The organization and fund structure of the City are documented on the title page and in the notes to the basic
financial statements.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting as a basis
for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over
financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis.
A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with
accounting principles generally accepted in the United States of America such that there is more than a remote
likelihood that a misstatement will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more
than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected
by the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.
162
CITY OF TIGARD, OREGON
AUDITOR'S COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS (Continued)
YEAR ENDED JUNE 30, 2008
Adequacy of Accounting Records
The City's accounting records were reasonably maintained and adequate to support our audit of the basic
financial statements.
Indebtedness
We noted no defaults in principal, interest, sinking fund, or redemption provisions with respect to any of the
City's liabilities, and no breach of the bond agreements, at June 30, 2008.
Adequacy of Collateral Securing Depository Balances
ORS 295 provides that each depository, throughout the period of its possession of public fund deposits, shall
maintain on deposit with its custodians, at its own expense, securities having a value not less than 25% of the
certificates of participation issued by the pool manager for funds in excess of those insured by the Federal
Deposit Insurance Corporation. Our review of the adequacy of collateral securing depository balances indicated
the collateral was not sufficient at times during the year ended June 30, 2008.
Investments
Our review of deposit and investment balances indicated that the City was in compliance with ORS 294, as it
pertains to investment of public funds, during the year ended June 30, 2008.
Budget Compliance
The City appears to have complied with Local Budget Law (ORS 294.305 to 294.520) in the preparation,
adoption and execution of its budget and tax levy for the year ended June 30, 2008, and the preparation and
adoption of its budget for the year ending June 30, 2009, except as noted in the notes to the basic financial
statements.
A description of the budgeting process is included in the notes to the basic financial statements.
Insurance Policies and Fidelity Bonds
We have reviewed the City's insurance coverage at June 30, 2008. We ascertained that such policies appeared to
be in force. We are not competent by training to comment on the adequacy of the insurance policies covering
City property at June 30, 2008.
Public Contracting and Purchasing
Our review of the City's public contracting, purchasing procedures and construction of public improvement
requirements (ORS 279) indicated that the City was in compliance.
Programs Funded From Outside Sources
Our reports on internal control over financial reporting and on compliance and other matters based on an audit of
financial statements performed in accordance with Government Auditing Standards and
163
CITY OF TIGARD, OREGON
AUDITOR'S COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS (Continued)
YEAR ENDED JUNE 30, 2008
compliance with requirements applicable to each major program and internal control over compliance in
accordance with OMB Circular A-133 are contained in the separate Single Audit Annual Financial Report.
Programs Funded From Outside Sources (continued)
We have reviewed the City's compliance with appropriate laws, rules, and regulations pertaining to material
programs funded wholly or partially by other governmental agencies. The City is in compliance with the
guidelines in all material aspects.
Financial Reporting Requirements
We have reviewed financial reports and other data relating to material programs funded wholly or partially by
other governmental agencies. This data, filed with other governmental agencies, is in agreement with and
supported by the accounting records.
Highway Funds
The City complied with the legal requirements, Article IX, Section 3a of the Oregon Constitution pertaining to
the use of revenue from taxes on motor vehicle fuel, and the statutory requirements of ORS 368 and 373 as they
pertain to the use of road funds.
This report is intended solely for the information and use of the City Council and management of the City of
Tigard, the Oregon Secretary of State Audis Division, and is not intended to be and should not be used by anyone
other than these specified parties.
GROVE, MUELLER & SWANK, P.C.
CERTIFIED PUBLIC ACC NTANTS
By:
Charles A. Swank, A Shareholder
January 29, 2009
164
CITY OF TIGARD
SETTING THE STANDARD FOR SERVICE
EXCELLENCE
We are committed to:
PARTICIPATION
Citizens and employees working together
INNOVATION
Consider and respect ideas
RESPONSIVENESS
Accurate and timely
COMMUNICATION
Open and clear
COURTESY
To all
165
CITY OF TIGARD
Washington County, Oregon
FEDERAL GRANT COMPLIANCE REPORT
Year Ended June 30, 2008
166
CITY OF TIGARD, FEDERAL GRANT COMPLIANCE REPORT
TABLE OF CONTENTS
Page
Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 1-2
Report on Compliance with Requirements Applicable to Each Major Program
and Internal Control Over Compliance in Accordance with OMB Circular A-133 3-4
Schedule of Expenditures of Federal Awards 5-6
Summary of Findings and Questioned Costs 7
167
GROVE, MUELLER & SWANK, P.C.
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
475 Cottage Street NE, Suite 200, Salem, Oregon 97301
(503) 581-7788
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MA TIERS BASED ON AN A UDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Honorable Mayor and
Members of the City Council
City of Tigard
13125 SW Hall Blvd,
Tigard, Oregon 97223
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Tigard, Oregon, as of and for the year ended June
30, 2008, which collectively comprise the City's basic financial statements, and have issued our report thereon
dated January 29, 2009. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reportinm
In planning and performing our audit, we considered the City's internal control over financial reporting as a basis
for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not
for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial
reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees, in
the norinal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the entity's internal
control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than
a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the
entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.
168
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of
our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the City of Tigard, federal awarding agencies and pass-
through entities and is not intended to be and should not be used by anyone other than those specified parties.
CERTIFIED PUBLIC A C CO UNTA NTS
January 29, 2009
169
GROVE, MUELLER & SWANK, RC.
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
475 Cottage Street NE, Suite 200, Salem, Oregon 97301
(503) 581-7788
REPORT ON COMPLIANCE WITH REQ UIREMENTS
APPLICABLE TO EACHMAJOR PROGRAMAND INTERNAL CONTROL OVER
COMPLIANCE INACCORDANCE WITH OMB CIRCULAR A-133
Honorable Mayor and
Members of the City Council
City of Tigard
13125 SW Hall Blvd,
Tigard, Oregon 97223
Compliance
We have audited the compliance of the City of Tigard, Oregon with the types of compliance requirements described
in the U. S. Office of Management and Budget (OMB) Circular A-133, Compliance Supplement that are applicable
to each of its major federal programs for the year ended June 30, 2008. The City's major federal programs are
identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned
Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major
federal programs is the responsibility of the City's management. Our responsibility is to express an opinion on the
City's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred. An audit
includes examining, on a test basis, evidence about the City's compliance with those requirements and performing
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination on the City's compliance with
those requirements.
In our opinion, the City of Tigard complied, in all material respects, with the requirements referred to above that are
applicable to its major federal program for the year ended June 30, 2008.
Internal Control Over Compliance
The management of the City of Tigard is responsible for establishing and maintaining effective internal control
over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In
planning and performing our audit, we considered the City's internal control over compliance with requirements
that could have a direct and material effect on a major federal program in order to determine our auditing
procedures for the purpose of expressing our opinion on compliance but, not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over compliance.
170
A control deficiency in an entity's internal control over compliance exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their assigned functions, to prevent
or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to administer a federal program such that there is more than a remote likelihood that noncompliance
with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented
or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than
a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will
not be prevented or detected by any entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph
of this section and would not necessarily identify all deficiencies in internal control that might be significant
deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that
we consider to be material weaknesses, as defined above.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Tigard, Oregon as of and for the year ended June
30, 2008, which collectively comprise the City's basic financial statements, and have issued our report thereon
dated January 29, 2009. Our audit was performed for the purpose of forming an opinion on the basic financial
statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial
statements taken as a whole.
This report is intended solely for the information and use of the City of Tigard, federal awarding agencies and pass-
through entities and is not intended to be and should not be used by anyone other than those specified parties.
CERTIFIED PUBLIC ACCOUNTANTS
January 29, 2009
171
CITY OF TIGARD, OREGON, FEDERAL GRANT COMPLIANCE REPORT
SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
YEAR ENDED JUNE 30, 2008
Federal CFDA
Number Grant Number Expenditures
Department of Justice
Direct Programs:
Gang Related Education and Training 16.737 2007-JV- $ 119,717
FX-0202
Bulletproof Vest Partnership Program 16.607 6135732 1,524
Department of Health and Human Services
Direct Programs:
Drug Free Communities Support Program 93.276 1H79SPO 46,914
14484-01
Department of Homeland Security
Passed through State of Oregon
Emergency Management Performance Grants 97.042 #07-234 19,914
Department of Housing and Urban Development
Passed through Washington County
Community Development Block Grant/
Entitlement Grants 14.218 9226 330,673
Total Federal Assistance $ 518,742
See Notes to Schedule of Federal Awards
172
CITY OF TIGARD, OREGON, FEDERAL GRANT COMPLIANCE REPORT
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
YEAR ENDED JUNE 30, 2008
PURPOSE OF THE SCHEDULE
The accompanying schedule of expenditures of federal awards (the "Schedule") is a supplementary schedule to the
City of Tigard, Oregon's basic financial statements and is presented for purposes of additional analysis. Because
the Schedule presents only a selected portion of the activities of the City of Tigard, Oregon, it is not intended to and
does not present either the financial position, changes in fund balances, or the operating funds' revenues,
expenditures and changes in the net assets of the City of Tigard, Oregon.
SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The information in the Schedule is presented in accordance with OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations.
Federal Financial Assistance
Pursuant to the Single Audit Act of 1984 and OMB Circular A-133, federal financial assistance is defined as
assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative
agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly,
nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and,
therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal
cash assistance to individuals. Solicited contracts between the state and federal government for which the federal
government procures tangible goods or services are not considered to be federal financial assistance.
Major Programs
The Single Audit Act of 1984 and OMB Circular A-133 establish criteria to be used in defining major federal
financial assistance programs. Major programs for the City of Tigard, Oregon are those programs selected for
testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as
outlined in OMB Circular A-133. Programs with similar requirements may be grouped into a cluster for testing
purposes.
Reporting Entity
The reporting entity is fully described in notes to the basic financial statements. This schedule includes all federal
programs administered by the City of Tigard, Oregon for the year ended June 30, 2008.
Revenue and Expenditure Recognition
The receipt and expenditure of federal awards are accounted for under the modified accrual basis of accounting.
Revenues are recorded as received in cash or on the accrual basis where measurable and available. Expenditures
are recorded when the liability is incurred.
173
CITY OF TIGARD
SUMMARY OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2008
SECTIONI - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's opinion issued: Unqualified
Internal control reporting:
• Material weakness(es) identified? No
• Significant deficiencies identified that are not considered to be material weaknesses? No
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs:
• Material weakness(es) identified? No
• Significant deficiencies identified that are not considered to be material weaknesses? No
Type of auditor's report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are required to be reported in accordance with
section 510(a) of Circular A-133? No
Identification of major program:
CFDA Numbers Name of Federal Program or Cluster
14.218 Community Development Block Grant/Entitlement Grants
Dollar threshold used to distinguish between type A and type B programs: $300,000
Auditee qualified as low-risk auditee? No
FINANCIAL STATEMENT FINDINGS
None.
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None.
174