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COMPREHENSIV ANNUAL
FINANCIAL REPORT
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13125 SW Hall Boulevard I Tigard, OR 97223 I www.tigard - or.gov
CITY OF TIGARD, OREGON
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended June 30, 2010
Prepared by:
City of Tigard — Financial and Information Services Department
City of Tigard, Oregon
Table of Contents
Page
INTRODUCTORY SECTION:
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 9
Organization Chart 10
Mayor and City Council Members 11
FINANCIAL SECTION:
Independent Auditors' Report 15
Management's Discussion and Analysis 17
Basic Financial Statements:
Government -Wide Financial Statements
Statement of Net Assets 35
Statement of Activities 36
Fund Financial Statements
Major Governmental Funds:
Balance Sheet 37
Statement of Revenues, Expenditures, and Changes in Fund Balance 38
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance to the Statement of Activities 39
Proprietary Funds:
Statement of Net Assets 40
Statement of Revenues, Expenses, and Changes in Fund Net Assets 41
Statement of Cash Flows 42
Pension Trust Fund:
Statement of Plan Net Assets 43
Statement of Changes in Plan Net Assets 44
Notes to Basic Financial Statements 47
Required Supplementary Information:
Schedules of Revenues and Expenditures — Budget and Actual:
General Fund 73
Gas Tax Fund 74
City Gas Tax Fund 75
Tree Replacement Fund 76
Notes to Required Supplemental Information — Budget to GAAP Reconciliation 77
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet 81
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 82
Special Revenue Funds:
Combining Balance Sheet — Nonmajor Special Revenue Funds 85
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 86
Schedules of Revenues and Expenditures — Budget and Actual:
Electrical Inspection Fund 87
Criminal Forfeiture Fund 88
Building Fund 89
Library Fund 90
City of Tigard, Oregon
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued:
Other Supplementary Information, Continued:
Debt Service Funds:
Combining Balance Sheet — Nonmajor Debt Service Funds 93
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 94
Schedules of Revenues and Expenditures — Budget and Actual:
Bancroft Debt Service Fund 95
General Obligation Bond Debt Service Fund 96
Urban Renewal Agency Debt Service Fund 97
Capital Projects Funds:
Combining Balance Sheet — Nonmajor Capital Projects Funds 101
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances — Nonmajor Capital Projects Funds 102
Facility Fund 103
Transportation Development Tax Fund 104
Traffic Impact Fee Fund 105
Underground Utility Fund 106
Street Maintenance Fee Fund 107
Parks Capital Fund 108
Parks SDC Fund 109
Urban Renewal Agency Capital Projects Fund 110
Proprietary Funds:
Enterprise Funds:
Schedules of Revenues and Expenditures — Budget and Actual:
Sanitary Sewer Fund 113
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses — Sanitary Sewer Fund 114
Storm Sewer Fund 115
Water Quality and Quantity Fund 116
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses — Storm Sewer Funds 117
Water General Fund 118
Water System Development Fund 119
Water Capital Projects Fund 120
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses — Water Funds 121
Reconciliation of Budgetary Fund Balances to Generally Accepted
Accounting Principles Basis Net Assets 122
Internal Service Funds:
Combining Statement of Net Assets 125
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 126
Combining Statement of Cash Flows 127
Schedules of Revenues and Expenditures — Budget and Actual:
Central Service Fund 128
Fleet /Property Management Fund 129
Insurance Fund 130
City of Tigard, Oregon
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued:
Other Supplementary Information, Continued:
Other Schedules:
Schedule of Property Tax Transactions and Outstanding Balances 133
Schedule of Bond and Bond Interest Transactions 134
Schedule of Future Debt Service Requirements of
Long -term Notes Payable 135
Schedule of Future Debt Service Requirements of
Bancroft Improvement Bonds 136
Schedule of Future Debt Service Requirements of
General Obligation Bonds 137
STATISTICAL SECTION:
Net Assets by Component 141
Changes in Net Assets 143
Fund Balances of Governmental Funds 147
Changes in Fund Balances of Governmental Funds 148
Government — Wide Revenues 150
Government — Wide Expenses by Function 151
General Governmental Revenues by Sources 152
General Governmental Expenses by Function 153
Market Value and Assessed Value of Taxable Property 154
Property Tax Rates — Direct and Overlapping Governments 155
Principal Property Taxpayers 156
Property Tax Levies and Collections 157
Special Assessment Collection 158
Ratio of Annual Debt Service Expenditures for Long -Term Debt to
Total Governmental Expenditures 159
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt per Capita 160
Computation of Direct and Overlapping General Obligation Debt 161
Computation of Legal Debt Margin 162
Ratio Debt by Type 163
Demographics Statistics 164
Principal Employers 165
Property Value and Construction 166
Full -time Equivalent City Government Employees by Function 167
Operating Indicators by Function /Program 168
Capital Assets Statistics by Function 169
AUDIT COMMENTS AND DISCLOSURES REQUIRED BY
STATE REGULATIONS:
Auditors' Comments and Disclosures 173
INTRODUCTORY SECTION
1 , 1
TIGARD
December 30, 2010
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, 2010.
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 City's comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from material
misstatements. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The City's financial statements were audited by 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, 2010, 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, 2010, 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 require that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD &A and should be read in conjunction with it. The City's
MD&A can be found immediately following the report of the independent auditors.
3
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 47,595. 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 close to 48,000 by 2011. 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.
4
Local economy
The City's location in the Portland metropolitan area provides citizens with many diverse employment
opportunities. Unemployment data is reported specifically for Tigard as well as Washington County and
the Portland Metro area.
The chart below shows a six year comparison of unemployment rates for the state and local areas as well
as the U.S. The City of Tigard has the lowest rates over the six year time period and the Portland Metro
area and the State of Oregon have the highest rates. Although in the past year the rate for every category,
except the U.S., decreased from the previous year due to the slow economic recovery in 2010.
14.00% -
12.00%
10.00% -
Oregon
8.00% -
US
6.00% - Ptld Metro
Wash Co.
4.00% Pr!' -
Tigard
2.00% -
0.00%
2005 2006 2007 2008 2009 2010
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 depatt.nnent 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 2010 3,355
Median Household Income (estimated 2008) $66,377
Primary Economic Sector (receipts /sales) Wholesale Trade
General Fund Permanent Tax Rate $2.51310 per $1000
of assessed value
Total Assessed Value (2010) $4,914,142,310
5
Ten Largest Employers
(as of March 2010)
Employer Product or service Employment
HSBC Card Services Financial Services 948
Tigard - Tualatin School District Local school district 779
Macy's Retail department store 704
Nordstrom Retail department store 579
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 266
The Cheesecake Factory Food service 250
Home Depot Home improvement store 241
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.
• To set forth operational principles, which minimize the cost and financial risk of the City's
government consistent with services, desired by the public.
6
• 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 2010 Council established
five goals for the City as follows:
1. Implement Comprehensive Plan
a. Complete the Transportation System Plan (TSP) and begin area plans (Tigard Triangle, 99W
Corridor, etc.)
b. Update Tree Code to meet Comprehensive Plan
c. Continue to promote and plan for light rail in 99W Corridor
2. Implement Downtown Urban Renewal
a. Initiate developer outreach /recruitment
b. Adopt Downtown Circulation Plan
3. Strategize with Park and Recreation Advisory Board on a 2010 Parks Bond
a. Decide whether to return to ballot and, if so, when
b. Develop land acquisition strategies (potential options to purchase, etc.)
4. Advance Methods of Communication
a. External: Develop communication strategy and methods in support of City goals.
b. Internal: Support staff efforts to change the organizational culture to create a proactive
environment of exceptional people and service, promoting the values of "respect and care,"
"get it done," and "do the right thing" (Strategic Clarity).
5. Support 2010 Washington County Cooperative Library Services (WCCLS) and Washington
County Public Safety Levies
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.
7
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. Design is continuing on street improvements, a downtown streetscape design, and other
improvements. Construction on a redesigned Burnham Street began shortly after the end of fiscal year
2009.
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, 2009. This was the 25th 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 2010 -2011. This was the 23rd 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
8
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tigard
Oregon
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
,E OFp, C
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A
it Ase C .AUA n President
s cuRpattuy g
l S,F.Aif
chIcALa
Executive Director
9
CITIZENS OF TIC
MAYOR &
CITY COUNCIL _Nill
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CITY CITY
MANAGER, A`I TOI�NEY
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COMMUNITY PUBLIC COMMU3VIT*i' POLIO &
SERVICES WO DEVELOPMENT ADMINISTRATION
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PUBLIC COMA CITY FrmuiccE
POLICE LIBRARY WORKS DES E} TT ADMINISTRATION
INFORMATION
SEILvICES
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Adminiscuiaa Admiaissanoa Adniinistortion Adman/sir/non Major sad Commci1 Adminiumnion
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Readers' Public Open ons o Building CAT Mana
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CITY OF TIGARD, OREGON
PRINCIPAL OFFICIALS AS OF JUNE 30, 2010
ELECTED OFFICIALS:
Name Term Expires
Mayor Craig Dirksen December 31, 2010
Councilor Nick Wilson December 31, 2012
Councilor Gretchen Buehner December 31, 2010
Councilor Marland Henderson December 31, 2012
Councilor Sydney Webb December 31, 2010
APPOINTED OFFICIALS:
Craig Prosser, City Manager
Toby LaFrance, Director of Finance and Information Services
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
xiii
FINANCIAL SECTION
13
1111 11111111111 1111 .
GROVE, MUELLER& SWANK, P.C.
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
475 Cottage Street NE, Suite 200, Salem, Oregon 97301
(503) 581 -7788
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members of the City Council
City of Tigard
13125 SW Hall Boulevard
Tigard, Oregon 97223
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, 2010, which collectively comprise the City's basic financial statements as listed in the table of
contents. These fmancial 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 fmancial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the 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 fmancial 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, 2010, and the respective changes in
financial position and, where applicable, its cash flows 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 December 30, 2010 on
our consideration of the City's internal control over financial reporting and 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 should be
considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis be presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic fmancial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America, which
15
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City's financial statements as a whole. The introductory, combining and individual fund financial statements,
other financial schedules, and statistical section are presented for purposes of additional analysis and are not a
required part of the financial statements. The combining and individual fund fmancial statements are the
responsibility of management and were derived from and relate directly to the underlying accounting and other
records used to prepare the financial statements. The information has been subjected to the auditing procedures
applied in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the financial statements as a whole. The introductory, other financial schedules, and
statistical section have not been subjected to the auditing procedures applied in the audit of the basic fmancial
statements and, accordingly, we do not express an opinion or provide any assurance on them.
GROVE, MUELLER & SWANK, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
By: ► 1
Charles A. Swank, A Shareholder
December 30, 2010
16
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, 2010. 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 $285.9 million
(net assets). Of this amount, $32.9 million (unrestricted net assets) may be used to meet the City's
ongoing obligations to citizens and creditors.
• The City's net assets decreased $2.0 million over the course of this year's operations. Within this total
the net assets of our business -type activities decreased by $0.4 million or 0.4 percent, and net assets of
our governmental activities decreased by $1.6 million or 0.8 percent.
• During the fiscal year, the City generated $32.4 million in taxes, charges for services, and other
revenues for governmental programs while incurring expenses from governmental activities totaling
$35.3 million, for a decrease in net assets of $1.6 million. This includes $1.3 million of transfers into
governmental activities from business -type activities.
• In the City's business -type activities, revenues increased by about $0.3 million, while expenses
increased by about $0.1 million. The City increased water rates by 7 percent, sewer rates by 5 percent
and storm water fees by 20 percent. The smaller than expected increase in revenues received from
customers is due primarily to a decrease in water consumption due to conservation and an increasing
number of vacant homes due to foreclosures.
• As of the close of fiscal year 2010, the City's governmental funds reported combined ending fund
balances of $22.3 million, an increase of $2.8 million. This increase reflects bond proceeds of $7.25
million. Without the bond proceeds, the governmental funds would have decreased approximately
$4.5 million. This is primarily due to increasing expenses and flat revenues.
• At the end of the fiscal year, unreserved fund balance for the General Fund was $7.3 million, a
decrease of $0.4 million or a six percent decrease from the previous year. In anticipation of this
decrease, the City has implemented cost- cutting measures, the most notable of which is decreasing
staff by approximately 15 full -time equivalency near the end of fiscal year 2010.
• The City's total debt increased by $6.4 million during fiscal year 2010. This is due to the issuance of
$7.25 million in general obligation bonds to fund two street projects — the reconstruction of Burnham
Street and improvements to the Greenburg /Pacific Highway /Main Street intersection, offset by $0.75
million of normal annual debt service payments on the general obligation bonds, long -term notes, and
Bancroft improvement bonds.
17
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
i
FINANCIAL STATEMENTS
1
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)
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).
18
The governmental activities of the City include the following:
• Community services, police, library, and social services
• Public works, including parks and recreation
• Community development, current and long -range planning
• Policy and administration
The business -type activities of the City include the following:
• Sanitary sewer
• Storm water
• Water
The government -wide financial statements can be found on pages 35 -36 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 21 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 five major funds: General Fund, Gas Tax Fund, City Gas Tax Fund, the
Bancroft Debt Service Fund and the Tree Replacement Fund. Data from the other 14 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 37 -39 of this report.
19
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 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 113 -122 of this report. Budgetary comparisons for the internal
service funds are provided on pages 128 -130 of this report.
The proprietary fund financial statements can be found on pages 40 -42 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 43 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 47 -69 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 81 -130 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 $285.9 million at June 30, 2010.
The largest portion of the City's net assets (86 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.
20
City of Tigard, Oregon
Net Assets as of Fiscal Year -end
(in millions)
Governmental Business -type
Activities Activities Total
FY 09 -10 FY 08 -09 FY 09 -10 FY 08 -09 FY 09 -10 FY 08 -09
Assets
Current and other assets $ 30.4 $ 26.7 $ 22.0 $ 21.8 $ 52.4 $ 48.5
Net capital assets 192.5 190.3 73.7 71.6 266.2 261.9
Total assets 222.9 217.0 95.7 93.4 318.6 310.4
Liabilities
Other liabilities 5.5 4.4 4.5 1.8 10.0 6.2
Outstanding debt 19.8 13.4 2.9 2.9 22.7 16.3
Total liabilities 25.3 17.8 7.4 4.7 32.7 22.5
Net assets
Invested in capital assets,
net of related debt 175.2 179.6 70.9 68.7 246.1 248.3
Restricted 6.9 1.5 - 3.8 6.9 5.3
Unrestricted 15.5 18.1 17.4 16.2 32.9 34.3
Total net assets $ 197.6 $ 199.2 $ 88.3 $ 88.7 $ 285.9 $ 287.9
The City's net assets decreased by $2.0 million during the fiscal year. This decrease is due to flat revenues
with increasing expenses.
The revenues and expenses shown on the next table explain changes in net assets for fiscal year 2010.
21
City of Tigard, Oregon
Changes in Net Assets
(in millions)
Governmental Business -type
Activities Activities Total
FY 09 -10 FY 08 - FY 09 -10 FY 08 - FY 09 -10 FY 08 -
Revenues
Program Revenues
Charges for services $ 3.6 $ 4.0 $ 10.8 $ 10.3 $ 14.4 $ 14.3
Capital grants and contributions 0.3 - 1.0 - 1.3 -
Operating grants and contributions 0.2 0.2 - 0.8 0.2 1.0
Total Program revenues 4.1 4.2 11.8 11.1 15.9 15.3
Taxes 16.1 12.4 - - 16.1 12.4
Interest 0.3 0.9 0.1 0.6 0.4 1.5
Other 11.9 13.6 0.2 0.1 12.1 13.7
Total General revenues 28.3 26.9 0.3 0.7 28.6 27.6
Total revenues 32.4 31.1 12.1 11.8 44.5 42.9
Expenses
Community services 19.8 18.4 - - 19.8 18.4
Public works 8.6 2.5 - - 8.6 2.5
Community development 4.9 7.2 - - 4.9 7.2
Policy and administration 1.5 6.0 - - 1.5 6.0
Interest on long -term debt 0.5 0.5 - - 0.5 0.5
Sewer - - 1.3 1.6 1.3 1.6
Storm water - - 2.0 1.9 2.0 1.9
Water - - 7.9 7.6 7.9 7.6
Total expenses 35.3 34.6 11.2 11.1 46.5 45.7
Transfers in (out) 1.3 - (1.3) - - -
Changes in net assets (1.6) (3.5) (0.4) 0.7 (2.0) (2.8)
Beginning net assets 199.2 202.7 88.7 88.0 287.9 290.7
Ending net assets $ 197.6 $ 199.2 $ 88.3 $ 88.7 $ 285.9 $ 287.9
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.
22
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 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 53 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 - $4,548,520.
• Intergovernmental revenue is the other significant revenue category in other revenues and totals
$6,993,245. 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 county -wide
Hotel /Motel Tax and the WCCLS.
• Charges for service includes a variety of land use planning and permit fees, library fines, and other
miscellaneous types of fees and charges - $3,583,366.
Governmental Activities
Fiscal Year 2010
Revenues by Source Operating Grants
Charges for Service $32,386,618 and Contributions
$3,583,366 $199,506
11% <1%
Other
$11,918,649 Capital Grants and
37% Contributions
$305,398
1%
Interest
$308,853 Taxes
1% $16,070,846
50%
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Revenues - Business -type Activities
Charges for services represent 90 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 2009 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 7 percent water rate adjustment in anticipation of having to issue revenue bonds to
finance capital projects associated with these potential water sources. The City will be conducting a water
rate study during fiscal year 2011. The City Council approved rate increases of 30.5 % on January 1, 2011,
along with 14% increases on January 1, 2012, 2013, and 2014.
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 the agency.
Storm water rates increased approximately 20% in fiscal year 2010 after not having been adjusted for
several years.
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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 (56 percent) relate to the City Library and Police Department within the
Community services activity.
Overall, expenses in Governmental activities increased by $0.7 million over the previous fiscal year. The
majority of this increase can be attributed to increases in salaries and benefits. Increases were largely offset
by a reduction in staff that took place prior to the end of fiscal year 2010.
Expenses by Service Type
Fiscal Year 2010
Governmental Activities
Policy and $35,303,972 Interest on long -
administration term debt
$1,511,956 $548,987
4% 2%
Community
development
$4,846,494
14%
Community services
$19,832,642
56%
Public works
$8,563,893
24%
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Expenses - Business -type Activities
The majority of the expenses (70 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 decrease 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 has 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 2010
Business -type Activities
$11,321,325 Sewer
$1,379,105
12 °/a
Storm water
$2,061,622
18%
Water
$7,880,598
70%
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 2010, the City's governmental funds reported combined ending fund
balances of $22.3 million, an increase of $2.8 million in comparison with the prior year. The full amount
of governmental fund balance is reported as unreserved and undesignated.
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General Fund
The General Fund is the chief operating fund of the City. At the end of the fiscal year 2010, the
unreserved fund balance was $7.3 million that can be used for funding of City programs. This was a
decrease of $0.4 million. This decrease can be primarily attributed to the combined decrease in transfers
in.
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 drainage, traffic control devices, and cost of administration. At the end of
fiscal year 2010, the fund balance was $4.4 million, an increase of $1.9 million. This increase includes
$4.75 million of debt proceeds. The debt is being used to improve Burnham Street. Approximately $2.2
million was spent on the Burnham Street project during fiscal year 2010, with another $4.2 million
budgeted in fiscal year 2011. This project is expected to be completed in fiscal year 2011.
City Gas Tax Fund
This fund records shared revenues from City taxes on sale and use of motor vehicle fuel. Funds are
specifically pledged for the improvement of the Greenburg /Pacific Highway /Main Street intersection. At
the end of fiscal year 2010, the fund balance was $2.4 million, an increase of $1.4 million. This increase
includes $2.5 million of debt proceeds. Approximately $1.8 million was spent on the Greenburg /Pacific
Highway /Main Street project during fiscal year 2010, with another $2.25 million budgeted in fiscal year
2011. This project is expected to be completed in fiscal year 2011.
Bancroft Debt Service Fund
The Bancroft Debt Service Fund accounts for the payment of Bancroft improvement bond principal and
interest. The sources of revenue are 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 year 2010, the fund balance was $1.3 million, an increase of $0.2 million. This
increase is considered insignificant. As assessment payments build up in the fund, that money is remitted
to the bank to pay the related bond principal and interest.
Tree Replacement Fund
The Tree Replacement Fund accounts for developer fees that are paid in lieu of planting trees in new
developments throughout the City. At the end of fiscal year 2010, the fund balance was $204,958, a
decrease of $88,823. This decrease is considered insignificant. This fund is a major fund because of the
large liability of customer deposits. Staff is monitoring these customer deposits and expects a significant
amount to become revenue over the next few years as developers fail to improve property that is slated for
development.
Proprietary Funds
The City's proprietary funds include the Sanitary Sewer, Storm Sewer, Water, and Internal Services Funds.
27
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 $17.4 million. The total decrease in net assets for
these funds was $0.4 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 four budget amendments to the adopted General Fund budget. Total increase
in appropriations was $9,114,198. The changes are summarized as follows:
• Increase of $86,099 in grant revenues for police services.
• Increase of $5,650,392 in various funds. The majority of this budget increase occurred in the
Water CIP Fund to recognize federal grants.
• Increase of $127,797 in the Police, Library, and Public Works Departments to recognize various
grants.
• $3,250,000 increase in the City Gas Tax Fund to recognize bond proceeds.
The overall change to the budget in the General Fund after these four amendments was less than one
percent and had no significant affect on future services or liquidity.
The City underwent a significant reorganization in late summer and fall 2009. The reorganization came as
the result of a review of the City's engineering division by an external company, FCS Group. In order to
make the City's construction in progress process and engineering division more effective, FCS Group
came up with 20 recommendations for improvements. During spring and summer 2009, affected
department directors and their assistants met to discuss actual implementation of the recommendations.
Key budgetary changes were:
1. Capital Construction and Transportation moved from being supervised by the Community
Development Department (CD) to being supervised by Public Works (PW). This resulted in the
majority of the City's engineers and their support staff being moved to PW.
2. Finance and Information Services (FIS) became the department responsible for preparing the five -
year construction in progress document, which is updated annually. As part of that move, a senior
management analyst moved from CD to FIS.
This resulted in approximately $1.7 million in budgetary appropriations being moved from CD to PW, and
$110,263 being moved from CD to FIS. This was only a transfer of appropriations between departments
and did not increase overall appropriations for the City.
The City budgeted the General Fund with the anticipation that ending fund balance would decrease by
approximately $5.2 million. Actual results decreased fund balance by about $0.4 million. This difference
was caused by revenues coming in slightly higher than budget and expenditures that were $3.1 million
lower than budget.
For expenditures, the variance was primarily due to a conservative approach to the budget and about $750
thousand of contingency that was budgeted but not needed.
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Capital Asset and Debt Administration
Capital Assets
Governmental Activities
The City's investment in capital assets for its governmental activities as of June 30, 2010, amounts to $192.5
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 $2.1 million, less than one percent. This was primarily due to 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, 2010, amounts to $73.8
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 $2.2 million or 3.0 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 millions)
Governmental Business -type
Activities Activities Total
FY 09 -10 FY 08 -09 FY 09 -10 FY 08 -09 FY 09 -10 FY 08 -09
Land $ 8.0 $ 7.6 $ 4.4 $ 4.4 $ 12.4 $ 12.0
Construction in progress 8.9 4.9 8.2 10.6 17.1 15.5
Buildings and building improv. 16.5 17.0 1.4 1.4 17.9 18.4
Land improvements 1.4 1.5 - - 1.4 1.5
Sewer system - - 15.0 15.6 15.0 15.6
Storm drainage system - - 11.0 11.1 11.0 11.1
Water system - - 32.9 27.6 32.9 27.6
Machinery and equipment 1.8 1.4 0.4 0.6 2.2 2.0
Autos and trucks 0.9 0.8 0.5 0.3 1.4 1.1
Infrastructure 155.0 157.1 - - 155.0 157.1
Total capital assets $ 192.5 $190.3 $ 73.8 $ 71.6 $ 266.3 $ 261.9
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 four types of debt currently outstanding, three of which are governmental and
one is business -type. The governmental debt includes general obligation bonds ($16.7 million) secured by the
City's authority to levy property taxes and assessment bonds ($1.2 million) secured by installment payment
contracts with property owners. The third is a loan ($529,978) through the Oregon Economic
29
and Community Development Department (OECDD). This loan was secured by current and future park
system development charges collected by the City. The business -type activity debt is a draw against a line
of credit for water system improvements. The amount outstanding is $2.9 million. The total available is
$6.0 million. Principal payments are not required under the credit agreement until 2012. The City intends
to issue revenue bonds to pay off the line of credit.
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 limits. 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 63 -65 of this report.
City of Tigard, Oregon
Outstanding Debt at Fiscal Year -end
(in millions)
Total
Totals Percentage
FY 09 -10 FY 08 -09 Change
Governmental:
General obligation $ 16.7 $ 10.0 67.0%
Local improvement 1.2 1.3 -7.7%
Long -term note 0.5 0.8 -37.5%
Total outstanding debt $ 18.4 $ 12.1 52.1%
Business -type:
Line of credit $ 2.9 $ 2.9 0%
Economic Factors
The unemployment rate for the Washington County area was 9.0 percent at the end of the fiscal year, June
30, 2010. This is a slight decrease from the same period last year, when the rate was 9.7 percent. The rate
is still below the national average of 10.1 percent for June 2010.
The City of Tigard issues licenses for businesses operating within the City limits. As of June 30, 2010,
there were 3,355 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. Residential home construction, which includes free standing and attached, hit a high of 576
units in 2001 and dipped to a low of 42 in 2009, reflecting the fact that all construction declined
significantly in 2009. Residential construction valuation dropped from about $67.8 million in 2007 -08 to
30
$31.8 million in 2008 -09. Total housing units added in the City during 2008 -09 totaled 42, down from 93
in 2007 -08 and 231 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.
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 2009 -10 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 2010 -11 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.
31
BASIC FINANCIAL STATEMENTS
CITY OF TIGARD, OREGON
STATEMENT OF NET ASSETS
June 30, 2010
Governmental Business -Type
Activities Activities Total
ASSETS
Cash and investments $ 26,769,926 $ 18,405,864 $ 45,175,790
Accounts receivable 1,665,263 3,476,967 5,142,230
Property taxes receivable 572,298 - 572,298
Assessment liens receivable 1,067,816 - 1,067,816
Prepaid expenses 324,196 - 324,196
Inventory 12,673 50,463 63,136
Capital assets:
Land and construction in process 16,833,257 12,672,472 29,505,729
Other capital assets (net of accumulated depreciation) 175,638,183 61,123,842 236,762,025
Total Assets 222,883,612 95,729,608 318,613,220
LIABILITIES
Accounts payable and accrued liabilities 3,264,624 4,441,664 7,706,288
Customer deposits 1,988,101 46,473 2,034,574
Accrued interest payable 261,106 - 261,106
Noncurrent liabilities:
Due within one year:
Notes payable 259,053 - 259,053
Bonds payable 1,176,890 - 1,176,890
Accrued compensated absences 1,014,233 55,438 1,069,671
Special assessment bonded debt
with government commitment 283,469 - 283,469
Due in more than one year:
Notes payable 270,925 - 270,925
Line of credit - 2,853,868 2,853,868
Bonds payable 15,531,210 15,531,210
Accrued compensated absences 338,078 18,478 356,556
Special assessment bonded debt
with government commitment 920,261 - 920,261
Total Liabilities 25,307,950 7,415,921 32,723,871
NET ASSETS
Invested in capital assets, net of related debt 165,775,262 70,942,446 236,717,708
Restricted for:
Capital projects 4,945,265 - 4,945,265
Debt service 1,927,247 - 1,927,247
Unrestricted 24,927,888 17,371,241 42,299,129
Total Net Assets $ 197,575,662 $ 88,313,687 $ 285,889,349
The accompanying notes are an integral part of the basic financial statements.
35
CITY OF TIGARD, OREGON
STATEMENT OF ACTIVITIES
June 30, 2010
Net (Expense) Revenue and
Program Revenues Changes in Net Assets
Charges Operating Capital Primary Government
for Grants and Grants and Governmental Business -type
Functions /Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental activities:
Community services $ 19,832,642 $ 232,384 $ 199,506 $ - $ (19,400,752) $ - $ (19,400,752)
Public works 8,563,893 1,751,341 - 199,284 (6,613,268) - (6,613,268)
Community development 4,846,494 1,490,701 - 106,114 (3,249,679) (3,249,679)
Policy and administration 1,511,956 108,940 - - (1,403,016) - (1,403,016)
Interest on long -term debt 548,987 - - - (548,987) - (548,987)
Total governmentalactivities 35,303,972 3,583,366 199,506 305,398 (31,215,702) - (31,215,702)
Business -type activities:
Sewer 1,379,105 1,117,987 - 29,714 - (231,404) (231,404)
Storm water 2,061,622 1,872,545 - 19,803 - (169,274) (169,274)
Water 7,880,598 7,834,978 - 972,528 - 926,908 926,908
Total business -type activities 11,321,325 10,825,510 - 1,022,045 - 526,230 526,230
Total $ 46,625,297 $ 14,408,876 $ 199,506 $ 1,327,443 (31,215,702) 526,230 (30,689,471)
General Revenues: (D
M
Property taxes, levied for general purposes 14,789,719 - 14,789,719
Property taxes, levied for debt service 1,281,127 - 1,281,127
Franchise taxes 4,548,520 - 4,548,520
Unrestricted intergovernmental revenues 6,993,245 - 6,993,245
Interest earnings 308,853 153,300 462,153
Miscellaneous 376,884 204,427 581,311
Total general revenues 28,298,348 357,727 28,656,075
Transfers between Governmental and Business -type Activities 1,276,800 (1,276,800) -
Change in net assets (1,640,554) (392,843) (2,033,396)
Net assets -- beginning 199,216,216 88,706,530 287,922,746
Net assets -- ending $ 197,575,662 $ 88,313,687 $ 285,889,349
The accompanying notes are an integral part of the basic financial statements.
CITY OF TIGARD, OREGON
GOVERNMENTAL FUNDS
BALANCE SHEET
June 30, 2010
Bancroft City Tree Other Total
General Gas Tax Debt Service Gas Tax Replacement Governmental Governmental
Fund Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 7,636,473 $ 5,226,660 $ 1,337,714 $ 2,981,243 $ 1,373,824 $ 6,595,038 25,150,952
Accounts receivable 948,853 397,048 - 126,707 - 171,712 1,644,320
Property taxes receivable 543,814 - - - - 28,484 572,298
Assessment liens receivable - - 894,540 - - 173,276 1,067,816
Prepaid expense 273,726 - - - - - 273,726
Total assets S 9,402,866 $ 5,623,708 $ 2,232,254 $ 3,107,950 $ 1,373,824 S 6,968,510 5 28,709,112
LIABILITIES
Accounts payable and accrued liabilities $ 1,468,864 $ 595,021 $ - $ 678,058 $ 12,979 $ 125,838 $ 2,880,760
Customer deposits 139,225 594,759 - - 1,155,887 22,835 1,912,706
Due to others - - - - - 75,395 75,395
Deferred revenues: -
Property taxes 405,747 - - - - 10,342 416,089
Grants 47,778 - - - - - 47,778
Assessment liens - - 894,540 - - 173,278 1,067,818
Total liabilities 2,061,614 1,189,780 894,540 678,058 1,168,866 407,688 6,400,546
FUND BALANCES
Reserved for:
Prepaid expense 273,726 - - - - - 273,726
Unreserved, undesignated, reported in:
General Fund 7,067,526 - - - - - 7,067,526
Special revenue funds - 4,433,928 - 2,429,892 204,958 1,026,024 8,094,802
Capital projects funds - - - - - 4,945,265 4,945,265
Debt service funds - - 1,337,714 - - 589,533 1,927,247
Total fund balances 7,341,252 4,433,928 1,337,714 2,429,892 204,958 6,560,822 22,308,566
Total liabilities and fund balances $ 9,402,866 $ 5,623,708 $ 2,232,254 $ 3,107,950 $ 1,373,824 $ 6,968,510
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 $67,517,627. 192,471,440
Other long -term assets are not available to pay for current -period
expenditures and, therefore are deferred in the funds:
Assessment liens 1,067,818
Property taxes earned but not available 416,089
Grants earned but not available 47,778
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. 1,319,196
Accrued compensated absences are not due and payable in the
current period and therefore are not reported in the funds. (1,352,311)
Long -term liabilities - not reported in the funds:
Bonds, notes payable and other liabilities, not due and
payable in current period (18,441,808)
Accrued interest payable, not due and payable in the current period (261,106)
Net Assets of Governmental Activities $ 197,575,662
The accompanying notes are an integral part of the basic financial statements.
37
CITY OF TIGARD, OREGON
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For the fiscal year ended June 30, 2010
Bancroft City Tree Other Total
General Gas Tax Debt Service Gas Tax Replacement Governmental Governmental
Fund Fund Fund Fund Fund Funds Funds
REVENUES
Taxes $ 11,935,841 $ 2,150,981 $ - $ 685,885 $ - $ 1,306,081 $ 16,078,788
Franchise fees 4,548,520 - - - - - 4,548,520
Special assessments - - 284,202 - - - 284,202
Licenses and permits - - - - - 1,229,880 1,229,880
Intergovernmental revenues 5,819,081 344,792 - - - 194,520 6,358,393
Charges for services 1,286,411 2,746 - - 71,946 1,721,984 3,083,087
Fines and forfeitures 915,524 - - - - - 915,524
Interest earnings 88,889 24,234 114,570 3,910 10,437 58,086 300,126
Miscellaneous 210,996 - - - - 38,184 249,180
Total revenues 24,805,262 2,522,753 398,772 689,795 82,383 4,548,735 33,047,700
EXPENDITURES
Current operating:
Community services 18,870,804 547,694 - - - - 19,418,498
Public works 5,129,767 - - - - - 5,129,767
Community development 3,555,391 - - - - 1,118,617 4,674,008
Policy and administration 787,209 - - - - - 787,209
Debt service:
Principal - - 74,400 - - 801,113 875,513
Interest - - 101,358 - - 455,703 557,061
Capital outlay 292,221 2,854,189 - 1,836,421 96,206 2,294,006 7,373,043
Total expenditures 28,635,392 3,401,883 175,758 1,836,421 96,206 4,669,439 38,815,099
Excess (deficiency) of revenues
over (under) expenditures (3,830,130) (879,130) 223,014 (1,146,626) (13,823) (120,704) (5,767,399)
OTHER FINANCING SOURCES (USES)
Issuance of debt - 4,750,000 - 2,500,000 - - 7,250,000
Transfers in 4,058,709 - - - - 906,301 4,965,010
Transfers out (645,643) (1,944,920) - - (75,000) (1,022,647) (3,688,210)
Total other financing sources (uses) 3,413,066 2,805,080 - 2,500,000 (75,000) (116,346) 8,526,800
Net change in fund balances (417,064) 1,925,950 223,014 1,353,374 (88,823) (237,050) 2,759,401
Fund balances - beginning of year 7,758,316 2,507,977 1,114,700 1,076,518 293,781 6,797,871 19,549,163
Fund balances - end of year $ 7,341,252 $ 4,433,927 $ 1,337,714 $ 2,429,892 $ 204,958 $ 6,560,821 $ 22,308,564
The accompanying notes are an integral part of the basic financial statements.
38
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, 2010
Net change in fund balances - -total governmental funds $ 2,759,401
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 6,940,040
Less current year depreciation (4,239,120) 2,700,920
In the Statement of Activities, the loss on the disposition
of capital assets is reported. The loss is not a use of
current resources and thus is not reported in the funds. (602,893)
Revenues in the Statement of Activities that do not
provide current financial resources are not reported
as revenues in the funds.
Property taxes (7,942)
Assessment liens (286,014)
Grants 47,778 (246,178)
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.
Bond and loan proceeds (7,250,000)
Principal payments 875,513 (6,374,487)
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 (73,380)
Accrued interest on debt 8,074 (65,306)
Internal service funds are used by management to charge the
cost of administrative functions as well as fleet and property
management to individual funds. The net revenue of a portion
of internal service funds is reported with governmental activities.
Change in Net Assets - Internal Service Funds 187,989
Change in Net Assets of Governmental Activities $ (1,640,554)
The accompanying notes are an integral part of the basic financial statements.
39
CITY OF TIGARD, OREGON
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
June 30, 2010
Business -type Activities Governmental
Enterprise Funds Activities
Internal
Sanitary Storm Service
Sewer Sewer Water Totals Funds
ASSETS
Current assets:
Cash and investments $ 8,797,312 $ 2,209,523 $ 7,399,029 $ 18,405,864 $ 1,618,975
Accounts receivable 1,299,942 366,787 1,810,238 3,476,967 20,944
Prepaid expenses - - - - 50,470
Inventory - - 50,463 50,463 12,673
Total current assets 10,097,254 2,576,310 9,259,730 21,933,294 1,703,062
Noncurrent assets:
Capital assets:
Land and construction in process 901,483 - 11,770,989 12,672,472 -
Other capital assets (net of accumulated depreciation) 15,577,154 11,470,497 34,076,191 61,123,842 -
Total noncurrent assets 16,478,637 11,470,497 45,847,180 73,796,314 -
Total assets 26,575,891 14,046,807 55,106,910 95,729,608 1,703,062
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 1,463,005 179,351 2,799,308 4,441,664 383,865
Customer deposits - 4,754 41,719 46,473 -
Accrued compensated absences 11,576 14,458 29,404 55,438 192,571
Total current liabilities 1,474,581 198,563 2,870,431 4,543,575 576,436
Noncurrent liabilities:
Accrued compensated absences 3,858 4,819 9,801 18,478 64,190
Long -term debt - - 2,853,868 2,853,868
Total noncurrent liabilities 3,858 4,819 2,863,669 2,872,346 64,190
Total liabilities 1,478,439 203,382 5,734,100 7,415,921 640,626
NET ASSETS
Invested in capital assets, net of related debt 16,478,637 11,470,497 42,993,312 70,942,446 -
Unrestricted 8,618,815 2,372,928 6,379,498 17,371,241 1,062,436
Total net assets $ 25,097,452 $ 13,843,425 $ 49,372,810 $ 88,313,687 $ 1,062,436
The accompanying notes are an integral part of the basic financial statements.
40
CITY OF TIGARD, OREGON
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
For the fiscal year ended June 30, 2010
Business -type Activities Governmental
Enterprise Funds Activities
Internal
Sanitary Storm Service
Sewer Sewer Water Totals Funds
OPERATING REVENUES
Charges for services $ 1,117,987 $ 1,872,545 $ 7,834,978 $ 10,825,510 $ 7,632,031
Miscellaneous - - 204,427 204,427 127,704
Total operating revenues 1,117,987 1,872,545 8,039,405 11,029,937 7,759,735
OPERATING EXPENSES
Salaries and wages 385,904 560,620 1,368,936 2,315,460 4,307,663
Contracted services 5,745 321,490 3,109,701 3,436,936 1,588,617
General, administrative and other 366,195 755,117 1,969,978 3,091,290 1,628,050
Depreciation 621,261 424,395 1,371,793 2,417,449 -
Total operating expenses 1,379,105 2,061,622 7,820,408 11,261,135 7,524,330
Operating income (loss) (261,118) (189,077) 218,997 (231,198) 235,405
NONOPERATING REVENUES (EXPENSES)
Investment revenue 67,432 17,775 53,072 138,279 8,727
Interest expense - - (60,190) (60,190) -
Federal grant revenues - - 660,732 660,732 -
System development revenue 29,714 19,803 311,796 361,313 -
Total non - operating revenue 97,146 37,578 965,410 1,100,134 8,727
Net income before contributions (loss) (163,972) (151,499) 1,184,407 868,936 244,132
Transfers in - - 211,585 211,585 -
Transfers out (392,342) (441,512) (654,531) (1,488,385) -
Change in net assets (556,314) (593,011) 741,461 (407,864) 244,132
Net assets -- beginning of year 25,653,766 14,436,436 48,631,349 88,721,551 818,304
Net assets - -end of year $ 25,097,452 $ 13,843,425 $ 49,372,810 $ 88,313,687 $ 1,062,436
The accompanying notes are an integral part of the basic financial statements.
41
CITY OF TIGARD, OREGON
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
For the fiscal year ended June 30, 2010
Governmental
Business -type Activities - Enterprise Funds Activities
Sanitary Storm Internal
Sewer Sewer Water Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 1,085,844 $ 1,823,327 $ 7,394,393 $ 10,303,564 $ 7,628,416
Payments to suppliers (156,366) (1,026,804) (2,862,091) (4,045,261) (3,187,997)
Payments to employees (183,161) (558,458) (1,390,026) (2,131,645) (4,307,663)
Other receipts - - 204,427 204,427 127,704
Net cash provided (used) by operating activities 746,317 238,065 3,346,703 4,331,085 260,460
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
System development revenue 29,714 19,803 311,796 361,313 -
Interest expense - - (60,190) (60,190)
Grant proceeds - - 660,732 660,732 -
Transfers to other funds (392,342) (441,512) (654,531) (1,488,385) -
Proceeds from other funds - - 211,585 211,585 -
Acquisition of capital assets (1,026,362) (19,080) (3,575,890) (4,621,332)
Net cash (used) by capital and related
financing activities (1,388,990) (440,789) (3,106,498) (4,936,277) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 67,432 17,775 53,072 138,279 8,727
Net increase (decrease) in cash and cash equivalents (575,241) (184,949) 293,277 (466,913) 269,187
Cash and investments -- beginning of the year 9,372,553 2,394,472 7,105,751 18,872,776 1,349,789
Cash and investments - -end of the year S 8,797,312 $ 2,209,523 S 7,399,028 $ 18,405,863 S 1,618,976
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss) $ (261,118) $ (189,077) $ 218,997 $ (231,198) $ 235,405
Adjustments to reconcile operating income to net cash
provided by operating activities:
Cash flows reported in other categories:
Depreciation expense 621,261 424,395 1,371,793 2,417,449 -
Change in assets and liabilities:
Receivables (32,143) (49,218) (442,703) (524,064) (3,886)
Prepaid expenses - - - - 45,934
Inventory - - (44,384) (44,384) 1,461
Accounts payable and accrued liabilities 415,574 49,803 2,261,972 2,727,349 (18,454)
Accrued compensated absences 3,801 2,162 (21,090) (15,127) -
Unearned revenue (1,058) - - (1,058)
Customer deposits - - 2,118 2,118
Net cash provided (used) by operating activities S 746,317 5 238,065 $ 3,346,703 5 4,331,085 5 260,460
The accompanying notes are an integral part of the basic financial statements.
CITY OF TIGARD, OREGON
STATEMENT OF PLAN NET ASSETS
PENSION TRUST FUND
June 30, 2010
Assets
Cash and cash equivalents $ 5,501,176
Corporate bonds 489,369
Corporate stocks $ 8,912,829
Total assets 14,903,374
Net assets held in trust for pension benefits $ 14,903,374
STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUND
For the fiscal year ended June 30, 2010
Additions:
Contributions - employer $ 1,223,697
Contributions - employee 32,283
Investment income 1,333,733
Total additions 2,589,713
Deductions:
Benefit payments and withdrawals 349,210
Increase in net assets 2,240,503
Net assets held in trust for pension benefits
Beginning of year 12,662,871
End of year $ 14,903,374
The accompanying notes are an integral part of the basic financial statements.
43
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. Interfund
services provided by one fund and charged to another have been eliminated in the Statement of
Activities. 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 is offset by program revenues. Direct expenses are those that are
47
1. Summary of Significant Accounting Policies Continued:
clearly identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services or
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
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
48
1. Summary of Significant Accounting Policies Continued:
period are reported. An economic resources measurement focus is inextricably connected with
full accrual accounting. Under the full accrual basis of accounting, revenues are recorded when
earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of
related cash inflows and outflows.
Governmental funds financial statements are presented on a modified accrual basis of
accounting with a current financial resource measurement focus. This measurement focus
concentrates on the fund's resources available for spending currently or in the near future. Only
transactions and events affecting the fund's current financial resources during the period are
reported.
Similar to the connection between an economic resource measurement focus and full accrual
accounting, a current financial resource measurement focus is inseparable from a modified
accrual basis of accounting. Under modified accrual accounting, revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal year. 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
49
1. Summary of Significant Accounting Policies Continued:
related accrued liability for long -term portions of debt and compensated absences must be
included. Since the governmental fund statements are presented on a different measurement
focus and basis of accounting than the government -wide statements' governmental column, a
reconciliation is necessary to explain the adjustments needed to transform the fund based
financial statements into the governmental column of the government -wide presentation. This
reconciliation is part of the basic financial statements.
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 a lien on July 1. Collection dates are November 15,
February 15, and May 15 following the lien date. Discounts are allowed if the amount due is
received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are
considered delinquent.
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.
50
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, 2010 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, 2010 are as follows:
51
1. Summary of Significant Accounting Policies Continued:
Interfund Transfers, Continued:
Transfers
From Other Transfers To
Funds Other Funds
General Fund $ 4,058,709 $ 645,643
Gas Tax Fund - 1,944,920
Tree Replacement Fund - 75,000
Nonmajor Capital Project Funds 320,071 758,382
Nonmajor Special Revenue Funds 586,231 264,265
Enterprise Funds 211,585 1,488,385
$ 5,176,596 $ 5,176,595
These transfers have been eliminated in the government -wide statement of activities other than
the net effect between governmental activities and business -type activities.
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
52
1. Summary of Significant Accounting Policies Continued:
of revenues and expenses /expenditures during the reporting period. Actual results could differ
from those estimates.
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 over expended. 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.
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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 are the collection
of assessments against benefited property, interest and contributions from other
funds for their share of costs.
City Gas Tax Fund — This fund accounts for revenues generated from Tigard's local
gas tax. This tax was developed to fund improvements to the Greenburg
Rd. /99W /Main St. intersection and all proceeds are dedicated to this one project.
Tree Replacement Fund — This fund accounts for funds collected from developers
in lieu of preserving or planting trees. Funds are used by the City to plant trees in the
public rights -of -way and other public properties.
54
2. Fund Types, Continued:
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.
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.
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.
Insurance Fund — This fund was established to track worker's compensation and
other insurance related revenues as well as limited expenditures.
Fiduciary Fund:
Pension Trust Fund - This fund accounts for the City's employee defined contribution
pension plan.
55
2. Fund Types, Continued:
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:
Electrical Inspection Fund
Criminal Forfeiture Fund
Building Fund
Library Fund
Debt Service Funds:
General Obligation Debt Service Fund
Urban Renewal Debt Service Fund
Capital Projects Funds:
Facility Fund
Transportation Development Tax Fund
Traffic Impact Fee Fund
Underground Utility Fund
Street Maintenance Fee Fund
Parks Capital Fund
Parks SDC Fund
Urban Renewal Capital Projects Fund
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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, 2010:
Cash on hand $ 3,450
Cash held by Department of Finance, Washington County 58,434
Deposits with financial institutions 7,878,935
Investments 37,234,970
Total cash and investments $ 45,175,789
Deposits
Deposits with financial institutions include bank demand deposits and time deposit
accounts. The total bank balance is $8,308,972 (book balance is $7,856,558). Of these
deposits, $500,000 was covered by federal depository insurance and $7,808,972 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. The Federal Depository
Insurance Corporation (FDIC) provides insurance for the City's deposits with financial
institutions up to $250,000 each for the aggregate of all non - interest bearing accounts and
aggregate of all interest bearing accounts at each institution. Institutions with deposits in
excess of FDIC coverage participate in the Oregon Public Funds Collateralization Program
(PFCP). The PFCP is a shared liability structure for participating bank depositories. It
provides some protection for public funds, although it does not guarantee that all funds are
100% protected. Barring any exceptions, a bank depository is required to pledge collateral
valued as follows:
If well capitalized, 10%
If adequately capitalized, 25%
If undercapitalized, 110%
57
3. Cash and Investments, Continued:
The Office of the State Treasurer categorizes the financial institutions in Oregon. In the
event of a bank failure, the entire pool of collateral pledged by all qualified Oregon public
funds bank depositories is available to repay deposits of public funds of government entities.
The Office of the State Treasurer maintains a list of qualified financial institutions for the
deposit of public funds in excess of FDIC insurance. The financial institutions holding City
deposits are all on the State Treasurer's list.
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, 2010 is $14,903,374.
This balance is not included in the government -wide or fund financial statements, but is
shown separately on page 43.
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3. Cash and Investments, Continued:
As of June 30, 2010, the City had the following investments:
Percentage of
Investment Type Fair Value Cost Portfolio
State Treasurer's Local
Government Investment Pool $ 19,184,048 $ 19,184,048 51.52%
Money markets 6,115,126 6,115,126 16.42%
U.S. Government Securities 5,067,028 5,067,028 13.61%
Corporate bonds 6,868,768 6,868,768 18.45%
Total Investments $ 37,234,970 $ 37,234,970 100.00%
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, 2010, 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 $ 19,184,048 $ - $ - $ 19,184,048
Money markets 6,115,126 - - 6,115,126
US Government securities 5,067,028 5,067,028 - -
Corporate bonds 6,868,768 6,868,768 -
Total $ 37,234,970 $ 11,935,796 $ - $ 25,299,174
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, 2010, the
concentration of those maturities included the Local Government Investment Pool, Money Markets,
and investments with average maturities of twelve months or less at 67.70% of the total portfolio.
Investments with maturities between twelve and eighteen months made up 9.60% of the portfolio
and investments with maturities between eighteen and thirty -six months were 22.70% 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, 2010, the portion of the assessments receivable balance that represents delinquent accounts is
$2,987.
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5. Capital Assets:
Capital asset activity for governmental activities for the year ended June 30, 2010 was as
follows:
Balances Balances
June, 30 Reclassifications June, 30
2009 Additions Adjustments Retirements 2010
Non - depreciable
Land $ 7,604,017 $ 50,593 $ 312,459 $ - $ 7,967,069
Construction in progress 4,938,908 5,905,793 (1,379,949) (598,564) 8,866,188
Total non - depreciable 12,542,925 5,956,386 (1,067,490) (598,564) 16,833,257
Depreciable
Building and improvements 21,210,113 - 16,652 - 21,226,765
Land improvements 6,742,375 - - 6,742,375
Machinery and equipment 2,025,320 48,241 - (18,967) 2,054,594
Autos and trucks 2,652,573 439,134 - (693,070) 2,398,637
Office equipment 1,521,368 48,241 552,207 (137,502) 1,984,314
Infrastructure 207,802,456 448,038 498,631 - 208,749,125
Total depreciable 241,954,205 983,654 1,067,490 (849,539) 243,155,810
Accumulated depreciation
Building and improvements (4,197,912) (515,754) - - (4,713,666)
Land improvements (5,191,510) (136,893) - - (5,328,403)
Machinery and equipment (1,584,172) (170,840) - 18,967 (1,736,045)
Autos and trucks (1,858,399) (372,145) - 688,741 (1,541,803)
Office equipment (510,177) (151,636) - 137,502 (524,311)
Infrastructure (50,781,547) (2,891,852) - - (53,673,399)
Total accumulated depreciation (64,123,717) (4,239,120) - 845,210 (67,517,627)
Governmental activities
capital assets, net $ 190,373,413 $ 2,700,920 $ - $ (602,893) $ 192,471,440
* *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 $ 368,418
Public works 2,987,590
Community development 159,134
Policy and administration 723,978
Total depreciation for governmental activities $ 4,239,120
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5. Capital Assets Continued:
Capital assets activity for business -type activities for the year ended June 30, 2010, was as
follows:
Balances Reclassifications Balances
June 30, 2009 Additions Adjustments Retirements June 30, 2010
Non - depreciable
Land $ 4,422,170 $ - $ - $ - $ 4,422,170
Construction in progress 10,709,373 4,257,137 (6,716,208) - 8,250,302
Total non - depreciable 15,131,543 4,257,137 (6,716,208) - 12,672,472
Depreciable
Land improvements 360,669 32,041 - 392,710
Buildings and improvements 2,010,974 - - 2,010,974
Sewer System 22,781,174 41,294 - 22,822,468
Storm drainage system 16,252,755 304,039 - 16,556,794
Water system 48,535,997 6,338,834 - 54,874,831
Equipment 1,455,360 10,454 - 1,465,814
Auto and trucks 1,314,439 364,195 (10,454) (163,554) 1,504,626
Total depreciable 92,711,368 364,195 6,716,208 (163,554) 99,628,217
Accumulated depreciation
Land improvements (360,669) - - (360,669)
Buildings and improvements (579,111) (28,665) - - (607,776)
Sewer system (7,221,511) (538,431) - - (7,759,942)
Storm drainage system (5,229,712) (400,991) - - (5,630,703)
Water system (20,844,399) (1,158,514) - - (22,002,913)
Equipment (945,098) (186,480) - - (1,131,578)
Auto and trucks (1,069,981) (98,423) - 157,610 (1,010,794)
Total accumulated depreciation (36,250,481) (2,411,504) - 157,610 (38,504,375)
Business -type activities
capital assets, net $ 71,592,430 $ 2,209,828 $ - $ (5,944) $ 73,796,314
* *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 $ 617,009
Storm sewer 421,905
Water 1,372,590
Total depreciation for business -type activities $ 2,411,504
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6. Long -term Debt and Other Debt:
General Obligation Bonds payable
Bond transactions for the year ended June 30, 2010, and future maturities of bond principal
and interest, are as follows:
General Obligation bond issues - Oregon Bond Bank: original amount was $13,000,000.
Funds were used to build new library. Interest rates from 3 percent to 4.75 percent.
Transportation Bonds: original amount was $7,250,000. Funds were used for street
improvements. Interest rate is 4.35 %.
Fiscal Year Amount Added Paid Outstanding
Due Due During Year During Year June 30, 2010
2010 $ 553,795 $ - $ (553,795) $ -
2011 571,890 605,000 - 1,176,890
2012 590,281 660,000 - 1,250,281
2013 613,891 680,000 - 1,293,891
2014 632,787 695,000 - 1,327,787
2015 656,991 715,000 - 1,371,991
2016 -2020 3,728,911 3,895,000 - 7,623,911
2021 -2025 2,663,349 - - 2,663,349
$ 10,011,895 $ 7,250,000 $ (553,795) $ 16,708,100
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 Amount Called Outstanding Future
Due Due During Year June 30, 2010 Interest
2010 $ 224,276 $ (74,400) $ 149,876 $ -
2011 133,593 - 133,593 59,789
2012 140,720 - 140,720 52,661
2013 148,271 - 148,271 45,115
2014 111,243 - 111,243 37,123
2015 72,100 72,100 31,311
2016 -2020 447,927 - 447,927 69,123
$ 1,278,130 $ (74,400) $ 1,203,730 $ 295,122
6. Long -term Debt and Other Debt Continued:
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.
Fiscal Year Amount Paid Outstanding Future
Due Due During Year June 30, 2010 Interest
2010 $ 247,318 $ (247,318) $ - $ -
2011 259,053 - 259,053 22,795
2012 270,925 - 270,925 11,785
$ 777,296 $ (247,318) $ 529,978 $ 34,580
Water line of credit opened June 17, 2010 — Maximum amount is $6,000,000; maturity date
June 30, 2012; interest is a variable rate using either the LIBOR Fixed Rate or the BBA
LIBOR Daily Floating Rate Option. In addition, the City pays a commitment fee of 0.50%
per annum of the unused portion of the line of credit. Water revenues are pledged for
repayment, but the City intends to issue revenue bonds and repay the line of credit from the
bond proceeds in future years. The proceeds from the line of credit were used to begin
funding an intergovernmental agreement with the City of Lake Oswego for long -term water
supply. The amount outstanding at June 30, 2010 is $2,853,868.
Fiscal Year Amount Due Future
Due Due During Year Interest
2012 $ 2,853,868 $ (2,853,868) TBD
6z
6. Long -term Debt and Other Debt, Continued:
Other long -term obligations for accrued compensated absences and changes thereto during
the year ended June 30, 2010 are as follows:
Balance Balance Due
June 30, June 30, in one
2009 Additions Retirements 2010 year
Governmental activities:
Compensated absences $ 1,278,931 $ 1,626,616 $ (1,553,236) $ 1,352,311 $ 1,014,233
Business -type activities:
Compensated absences $ 89,042 $ 113,249 $ (128,375) $ 73,916 $ 55,438
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.
8. Retirement Plans:
The City contributes to retirement plans on behalf of all eligible employees. At June 30,
2010, the following employee groups were covered by the following retirement plans:
Group Retirement Plan
Management /Professional Staff (Non- union) International City Managers Association
Retirement Corp. (ICMARC) Money
Purchase Plan
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8. Retirement Plans, Continued:
Oregon Public Employees Union Employees ICMARC Money Purchase Plan
Tigard Police Officers State of Oregon Public Employees Retirement
System (OPERS)
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, which 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 Public Service Retirement Plan (OPSRP) employees. At June
30, 2010 the City had 30 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.
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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
and the annual contributions are equal to the annual pension cost. For the fiscal years ended
June 30, 2010, 2009 and 2008, the City's annual pension cost was $814,738, $914,958 and
$831,166 respectively.
ICMARC 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.
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 $1,223,697 for the year ended June 30,
2010. 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 that 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.
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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 16.60
percent of sewer service charges collected and 4 percent of connection charges collected, in
accordance with an agreement between the City and Clean Water Services. Payments of
$8,552,555 were made to Clean Water Services during fiscal year 2010 under this agreement.
The net amount retained by the City is reported as revenue in the enterprise funds in the
proprietary funds statement of revenues, expenses and changes in fund net 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 least 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.
68
10. Constitutional Property Tax Limitations, Continued:
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.
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 November 2, City of Tigard voters approved a parks bond measure allowing the City to
issue up to $17 million to acquire land for parks and open spaces. At least 80% of the funds
will be for land acquisition for open spaces, parks or trail corridors, and up to 20% will go to
improvements and development of park land. The City has agreements to purchase two
properties with additional recommendations coming over the next year using the Parks
System Master Plan as a guide.
The City adopted the provisions of Statement of Financial Accounting Standards ( "SFAS ")
No. 165, "Subsequent Events" (ASC 855). ASC 855 establishes new accounting and
disclosure requirements for subsequent events. Management has evaluated subsequent
events through December 30, 2010, the date on which the financial statements were
available to be issued. Management is not aware of any additional subsequent events that
require recognition or disclosure in the financial statements.
69
Required Supplementary Information
CITY OF TIGARD, OREGON
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Taxes $ 11,640,610 $ 11,640,610 $ 11,935,841 $ 295,231
Grants 367,492 597,788 301,161 (296,627)
Interagency revenue 5,299,942 5,299,942 5,261,885 (38,057)
Charges for services 1,358,518 1,358,518 1,286,411 (72,107)
Fines and forfeitures 880,876 880,876 915,524 34,648
Franchise fees 4,192,242 4,192,242 4,548,520 356,278
Interest earnings 140,685 140,685 88,889 (51,796)
Miscellaneous 30,000 30,000 210,996 180,996
Total revenues 23,910,365 24,140,661 24,549,227 408,566
EXPENDITURES:
Community services 20,068,571 20,239,474 18,870,804 1,368,670
Public works 4,581,525 6,056,730 5,129,767 926,963
Community development 5,325,778 3,854,575 3,555,391 299,184
Policy and administration 805,213 843,464 787,209 56,255
Capital improvements 768,667 768,667 292,221 476,446
Total expenditures 31,549,754 31,762,910 28,635,392 3,127,518
Change in fund balance
before other financing sources (uses) (7,639,389) (7,622,249) (4,086,165) 3,536,084
Other financing sources (uses):
Operating transfer in 4,337,189 4,337,189 4,314,744 (22,445)
Loans to CCDA (150,000) (150,000) (70,071) 79,929
Operating transfer out (971,607) (1,034,941) (575,572) 459,369
Total other financing sources (uses) 3,215,582 3,152,248 3,669,101 516,853
Contingency (750,000) (728,537) - 728,537
Change in fund balance (5,173,807) (5,198,538) (417,064) 4,781,474
FUND BALANCE BEGINNING OF YEAR 8,545,876 8,680,876 7,758,316 (922,560)
FUND BALANCE END OF YEAR $ 3,372,069 $ 3,482,338 $ 7,341,252 $ 3,858,914
CITY OF TIGARD, OREGON
GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Grants $ 510,356 $ 510,356 $ 344,792 $ (165,564)
State gas tax 2,014,048 2,014,048 1,966,091 (47,957)
County gas tax 199,413 199,413 184,890 (14,523)
Charges for services 6,500 6,500 2,746 (3,754)
Interest earnings 37,071 37,071 24,234 (12,837)
Total revenues 2,767,388 2,767,388 2,522,753 (244,635)
EXPENDITURES:
Community development 592,374 592,374 547,694 44,680
Capital projects 4,207,170 4,207,170 2,854,189 1,352,981
Total expenditures 4,799,544 4,799,544 3,401,883 1,397,661
Change in fund balance
before other financing sources (uses) (2,032,156) (2,032,156) (879,130) 1,153,026
Other financing sources (uses):
Transfer out (1,944,921) (1,944,921) (1,944,920) 1
Issuance of debt 6,350,000 6,350,000 4,750,000 (1,600,000)
Total other financing sources (uses) 4,405,079 4,405,079 2,805,080 (1,599,999)
Contingency (87,750) (87,750) - 87,750
Change in fund balance 2,285,173 2,285,173 1,925,950 (359,223)
FUND BALANCE BEGINNING OF YEAR 1,681,243 1,681,243 2,507,977 826,734
FUND BALANCE END OF YEAR $ 3,966,416 $ 3,966,416 $ 4,433,928 $ 467,511
74
CITY OF TIGARD, OREGON
CITY GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
City gas tax $ 650,000 $ 650,000 $ 685,885 $ 35,885
Interest earnings 7,217 7,217 3,910 (3,307)
Total revenues 657,217 657,217 689,795 32,578
EXPENDITURES:
Capital projects 620,000 3,870,000 1,836,421 2,033,579
Other financing sources:
Debt proceeds - 3,250,000 2,500,000 (750,000)
Contingency (109,412) (109,412) - 109,412
Change in fund balance (72,195) (72,195) 1,353,374 1,425,569
FUND BALANCE BEGINNING OF YEAR 777,185 777,185 1,076,518 299,333
FUND BALANCE END OF YEAR $ 704,990 $ 704,990 $ 2,429,892 $ 1,724,902
75
CITY OF TIGARD, OREGON
TREE REPLACEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Tree replacement revenue $ 100,000 $ 100,000 $ 71,946 $ (28,054)
Interest earnings - - 10,437 10,437
Total revenues 100,000 100,000 82,383 (17,617)
EXPENDITURES:
Capital projects 150,000 150,000 96,206 53,794
Change in fund balance
before other financing sources (uses) (50,000) (50,000) (13,823) 36,177
Other financing sources (uses):
Operating transfer in 268,000 268,000 - (268,000)
Operating transfer out (75,000) (75,000) (75,000) -
Total other financing sources (uses) 193,000 193,000 (75,000) (268,000)
Change in fund balance 143,000 143,000 (88,823) (231,823)
FUND BALANCE BEGINNING OF YEAR 500,000 500,000 293,781 (206,219)
FUND BALANCE END OF YEAR $ 643,000 $ 643,000 $ 204,958 $ (438,042)
76
CITY OF TIGARD, OREGON
NOTES TO REQUIRED SUPPLEMENTAL INFORMATION
BUDGET TO GAAP RECONCILIATION
For the fiscal year ended June 30, 2010
Sections of Oregon Revised Statutes (Oregon Budget Law) require most transactions be budgeted on the
modified accrual basis of accounting. However, there are certain transactions where statutory budget
requirements conflict with generally accepted accounting principles (GAAP).
The following discusses the differences between the budget basis and GAAP basis of accounting for the
General Fund and the Gas Tax Fund:
General
Fund
Net change in fund balance - budget basis
Budgeted resources not qualifying as revenues or other
financing sources under GAAP:
Indirect and other cost reimbursements received are reported
as revenues or other financing sources on a budget basis.
Such receipts are reclassified as a reduction of expenditures
on a GAAP basis. $ (256,035)
Budgeted expenditures not qualifying as expenditures or other
financing sources under GAAP:
Indirect and other costs reimbursed are reported as
expenditures on a budget basis. Such disbursements are
reclassified as a reduction of revenues and other financing
sources on a GAAP basis. 256,035
Net change in fund balance - GAAP basis $
77
Other Supplementary Information
CITY OF TIGARD, OREGON
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2010
Special Capital Debt
Revenue Projects Service
Funds Funds Funds Total
ASSETS:
Cash and investments $ 1,230,959 $ 4,792,688 $ 571,391 $ 6,595,038
Accounts receivable 5,289 166,423 - 171,712
Assessments receivable - - 28,484 28,484
Assessment liens receivable - 173,276 - 173,276
Total assets $ 1,236,248 $ 5,132,387 $ 599,875 $ 6,968,510
LIABILITIES:
Accounts payable $ 111,994 $ 13,844 $ - $ 125,838
Customer deposits 22,835 - - 22,835
Due to others 75,395 - - 75,395
Deferred revenues - Property taxes - - 10,342 10,342
Deferred revenues - Assessment liens - 173,278 - 173,278
Total liabilities 210,224 187,122 10,342 407,688
FUND BALANCE UNRESERVED 1,026,024 4,945,265 589,533 6,560,822
Total liabilities and fund balances $ 1,236,248 $ 5,132,387 $ 599,875 $ 6,968,510
81
CITY OF TIGARD, OREGON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the fiscal year ended June 30, 2010
Special Capital Debt
Revenue Projects Service
Funds Funds Funds Total
REVENUES:
Property taxes $ - $ - $ 1,306,081 $ 1,306,081
Licenses and permits 1,229,880 - - 1,229,880
Intergovernmental revenues - 194,520 - 194,520
Charges for services - 1,721,984 - 1,721,984
Interest earnings 4,372 52,468 1,246 58,086
Miscellaneous revenues - 38,184 - 38,184
Total revenues 1,234,252 2,007,156 1,307,327 4,548,735
EXPENDITURES:
Community development 983,286 - - 983,286
Debt service:
Principal - 247,318 553,795 801,113
Interest - 32,935 422,768 455,703
Capital outlay - 2,294,006 - 2,294,006
Total expenditures 983,286 2,574,259 976,563 4,534,108
Changes in fund balance
before other financing sources (uses) 250,966 (567,103) 330,764 14,627
Other financing sources (uses):
Operating transfer in 450,900 320,071 - 770,971
Indirect charges (141,405) - - (141,405)
Operating transfer out (122,860) (758,382) - (881,242)
Total other financing sources (uses) 186,635 (438,311) - (251,676)
Changes in fund balance 437,601 (1,005,414) 330,764 (237,049)
FUND BALANCE - beginning of year 588,423 5,950,679 258,769 6,797,871
FUND BALANCE - end of year $ 1,026,024 $ 4,945,265 $ 589,533 $ 6,560,822
82
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.
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
Building Fund - This fund accounts for fees charged for building inspection and plan review activities.
Library Fund — This fund accounts for the amounts received from several donations and bequests for
various special projects and artwork.
CITY OF TIGARD, OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30, 2010
Electrical Criminal
Inspection Forfeiture Building Library
Fund Fund Fund Fund Total
ASSETS:
Cash and investments $ 130,479 $ 136,437 $ 494,753 $ 469,290 $ 1,230,959
Accounts receivable - - 5,289 - 5,289
Total assets $ 130,479 $ 136,437 $ 500,042 $ 469,290 $ 1,236,248
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Accounts payable $ 21,650 $ - $ 90,344 $ - $ 111,994
Due to others - 75,395 - - 75,395
Customer deposits - 3,797 19,038 - 22,835
Total liabilities 21,650 79,192 109,382 - 210,224
FUND BALANCE UNRESERVED 108,829 57,245 390,660 469,290 1,026,024
Total liabilities and fund balances $ 130,479 $ 136,437 $ 500,042 $ 469,290 $ 1,236,248
85
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, 2010
Electrical Criminal
Inspection Forfeiture Building Library
Fund Fund Fund Fund Total
REVENUES:
Licenses and permits $ 165,693 $ - $ 1,064,187 $ - $ 1,229,880
Interest earnings 317 442 235 3,378 4,372
Total revenues 166,010 442 1,064,422 3,378 1,234,252
EXPENDITURES:
Community development - - 983,286 - 983,286
Changes in fund balance
before other financing sources (uses) 166,010 442 81,136 3,378 250,966
Other financing sources (uses):
Operating transfer in - - 450,900 - 450,900
Indirect charges - - (141,405) - (141,405)
Operating transfer out (122,860) - - - (122,860)
Total other financing sources (uses) (122,860) - 309,495 - 186,635
Changes in fund balance 43,150 442 390,631 3,378 437,601
FUND BALANCE - beginning of year 65,679 56,803 29 465,912 588,423
FUND BALANCE - end of year $ 108,829 $ 57,245 $ 390,660 $ 469,290 $ 1,026,024
CITY OF TIGARD, OREGON
ELECTRICAL INSPECTION FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Licenses and permits $ 123,000 $ 123,000 $ 165,693 $ 42,693
Interest earnings 1,378 1,378 317 (1,061)
Total revenues 124,378 124,378 166,010 41,632
Other financing sources (uses):
Operating transfer out (122,860) (122,860) (122,860) -
Contingency (24,780) (24,780) - 24,780
Change in fund balance (23,262) (23,262) - 43,150 66,412
FUND BALANCE BEGINNING OF YEAR 52,331 52,331 65,679 13,348
FUND BALANCE END OF YEAR $ 29,069 $ 29,069 $ 108,829 $ 79,760
87
CITY OF TIGARD, OREGON
CRIMINAL FORFEITURE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ 5,534 $ 5,534 $ 442 $ (5,092)
Other financing (uses):
Operating transfer out (10,000) (10,000) - 10,000
Change in fund balance (4,466) (4,466) 442 4,908
FUND BALANCE BEGINNING OF YEAR 56,109 56,109 56,803 694
FUND BALANCE END OF YEAR $ 51,643 $ 51,643 $ 57,245 $ 5,602
88
CITY OF TIGARD, OREGON
BUILDING FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Licenses and permits $ 719,200 $ 719,200 $ 1,064,187 $ 344,987
Interest earnings 8,168 8,168 235 (7,933)
Total revenues 727,368 727,368 1,064,422 337,054
EXPENDITURES:
Community development 1,066,695 1,066,695 983,286 83,409
Change in fund balance
before other financing sources (uses) (339,327) (339,327) 81,136 420,463
Other financing sources (uses):
Operating transfer in 478,935 478,935 450,900 (28,035)
Transfers out (141,405) (141,405) (141,405) -
Total other financing sources (uses) 337,530 337,530 309,495 (28,035)
Contingency (120,000) (120,000) - 120,000
Change in fund balance (121,797) (121,797) 390,631 512,428
FUND BALANCE BEGINNING OF YEAR 129,551 129,551 29 (129,522)
FUND BALANCE END OF YEAR $ 7,755 $ 7,755 $ 390,660 $ 382,906
89
CITY OF TIGARD, OREGON
LIBRARY FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ 4,524 $ 4,524 $ 3,378 $ (1,146)
EXPENDITURES: - - - -
Change in fund balance
before other financing sources (uses) 4,524 4,524 3,378 (1,146)
Other financing (uses):
Operating transfer out (100,000) (100,000) - 100,000
Change in fund balance (95,476) (95,476) 3,378 98,854
FUND BALANCE BEGINNING OF YEAR 448,500 448,500 465,912 17,412
FUND BALANCE END OF YEAR $ 353,024 $ 353,024 $ 469,290 $ 116,266
90
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 source 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 source of revenue is from property taxes and interest earnings.
Urban Renewal Agency Debt Service Fund - This fund accounts for payment of the Tigard Urban
Renewal Agency bond principal and interest. The source of revenue is from property taxes and interest
earnings.
91
CITY OF TIGARD, OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
June 30, 2010
General Urban Renewal
Obligation Agency
Debt Debt
Service Fund Service Fund Total
ASSETS:
Cash and investments $ 159,397 $ 411,994 $ 571,391
Property taxes receivable 19,709 8,775 28,484
Total assets $ 179,106 $ 420,769 $ 599,875
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Deferred revenues:
Property taxes $ 3,648 $ 6,694 $ 10,342
Total liabilities 3,648 6,694 10,342
FUND BALANCE UNRESERVED 175,458 414,075 589,533
Total liabilities and
fund balances $ 179,106 $ 420,769 $ 599,875
93
CITY OF TIGARD, OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
June 30, 2010
General Urban Renewal
Obligation Agency
Debt Debt
Service Fund Service Fund Total
REVENUES:
Taxes $ 1,050,480 $ 255,601 $ 1,306,081
Interest earnings 351 895 1,246
Total revenues 1,050,831 256,496 1,307,327
EXPENDITURES:
Debt service:
Principal 553,795 - 553,795
Interest 422,768 - 422,768
Total expenditures 976,563 - 976,563
Change in fund balance 74,268 256,496 330,764
FUND BALANCE - beginning of year 101,190 157,579 258,769
FUND BALANCE - end of year $ 175,458 $ 414,075 $ 589,533
94
CITY OF TIGARD, OREGON
BANCROFT BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Collection of bonded assessments $ 124,726 $ 124,726 $ 284,202 $ 159,476
Interest earnings 10,458 10,458 114,570 104,112
Total revenues 135,184 135,184 398,772 263,588
EXPENDITURES:
Debt service 193,409 193,409 175,758 17,651
Change in fund balance (58,225) (58,225) 223,014 281,239
FUND BALANCE BEGINNING OF YEAR 982,391 982,391 1,114,700 132,309
FUND BALANCE END OF YEAR $ 924,166 $ 924,166 $ 1,337,714 $ 413,548
95
CITY OF TIGARD, OREGON
GENERAL OBLIGATION DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Taxes $ 991,563 $ 991,563 $ 1,050,480 $ 58,917
Interest earnings 1,478 1,478 351 (1,127)
Total revenues 993,041 993,041 1,050,831 57,790
EXPENDITURES:
Debt service 976,563 976,563 976,563 -
Change in fund balance 16,478 16,478 74,268 57,790
FUND BALANCE BEGINNING OF YEAR 108,033 108,033 101,190 (6,843)
FUND BALANCE END OF YEAR $ 124,511 $ 124,511 $ 175,458 $ 50,947
96
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, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Property taxes $ 177,004 $ 177,004 $ 255,601 $ 78,597
Interest earnings 718 718 895 177
Total revenues 177,722 177,722 256,496 78,774
Change in fund balance 177,722 177,722 256,496 78,774
FUND BALANCE BEGINNING OF YEAR 159,979 159,979 157,579 (2,400)
FUND BALANCE END OF YEAR $ 337,701 $ 337,701 $ 414,075 $ 76,374
97
Capital Project 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.
Transportation Development Tax Fund — This fund accounts for traffic impact fees collected on
roads within the City's urban service areas. This fund replaces TIF starting July 1, 2009.
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). This fund was closed this year as
the services were transferred back to Washington County.
Underground Utility Fund - This fund accounts for monies received from developers for future
underground utility improvements.
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.
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.
99
CITY OF TIGARD, OREGON
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
June 30, 2010
Transportation Traffic Street Urban Renewal
Development Impact Underground Maintenance Parks Parks Agency
Facility Tax Fee Utility Fee Capital SDC Capital
Fund Fund Fund Fund Fund Fund Fund Projects Fund Total
ASSETS:
Cash and investments $ 311,916 $ 179,030 $ 920,475 $ 514,723 $ 212,153 $ 122,733 $ 2,488,270 $ 43,388 $ 4,792,688
Accounts receivable - - - - 134,806 3,535 28,082 - 166,423
Assessments liens receivable - - 30,518 - - 142,758 - - 173,276
Total assets $ 311,916 $ 179,030 $ 950,993 $ 514,723 $ 346,959 $ 269,026 $ 2,516,352 $ 43,388 $ 5,132,387
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Accounts payable and accrued liabilities $ 1,612 $ - $ 1,780 $ 8,060 $ 256 $ 1,193 $ 943 $ 13,844
Deferred revenues - - 30,518 - - 142,760 - - 173,278
O
Total liabilities 1,612 - 32,298 8,060 256 142,760 1,193 943 187,123
FUND BALANCES -
UNRESERVED 310,304 179,030 918,695 506,663 346,703 126,266 2,515,159 42,445 4,945,265
Total liabilities and fund balances 5 311,916 5 179,030 $ 950,993 $ 514,723 $ 346,959 $ 269,026 5 2,516,352 $ 43,388 5 5,132,387
CITY OF TIGARD, OREGON
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
For the fiscal year ended June 30, 2010
Transportation Traffic Street Urban Renewal
Development Impact Underground Maintenance Parks Parks Agency
Facility Tax Fee Utility Fee Capital SDC Capital
Fund Fund Fund Fund Fund Fund Fund Projects Fund Total
REVENUES:
Grants $ - $ - $ - $ - $ - $ 40,595 $ 136,905 $ - $ 177,500
Interagency revenues - - - - - - - 17,020 17,020
Charges for services - 179,243 85,518 8,754 880,366 - 569,103 - 1,721,984
Interest earnings 379 (213) 16,798 4,329 558 6,056 24,561 - 52,468
Miscellaneous revenues - - 3,482 - - 34,702 - - 38,184
Total revenues 379 179,030 105,798 13,083 880,924 81,353 729,569 17,020 2,007,156
EXPENDITURES:
Debt service:
Principal - - - - - - 247,318 - 247,318
Interest - - - - - - 32,935 - 32,935.
Capital projects 18,144 - 953,489 95,530 734,145 47,081 373,004 72,613 2,294,006
Total expenditures 18,144 - 953,489 95,530 734,145 47,081 653,257 72,613 2,574,259
Change in fund balance 0 p
before other financing sources (17,765) 179,030 (847,691) (82,447) 146,779 34,272 76,312 (55,593) (567,103)
Other financing sources (uses):
Transfers in 250,000 - - - - - - 70,071 320,071
Transfers out - - (294,570) - (84,000) - (379,812) - (758,382)
Total other financing sources (uses) 250,000 - (294,570) - (84,000) - (379,812) 70,071 (438,311)
Change in fund balance 232,235 179,030 (1,142,261) (82,447) 62,779 34,272 (303,500) 14,478 (1,005,414)
FUND BALANCE - beginning of year 78,069 - 2,060,956 589,110 283,924 91,994 2,818,659 27,967 5,950,679
FUND BALANCE - end of year $ 310,304 $ 179,030 $ 918,695 $ 506,663 $ 346,703 $ 126,266 $ 2,515,159 $ 42,445 $ 4,945,265
CITY OF TIGARD, OREGON
CAPITAL PROJECTS FUND - FACILITIES
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Grants $ - $ 230,500 $ - $ (230,500)
Interest earnings 3,932 3,932 379 (3,553)
Total revenues 3,932 234,432 379 (234,053)
EXPENDITURES:
Capital projects 155,000 385,500 18,144 367,356
Change in fund balance
before other financing sources (151,068) (151,068) (17,765) 133,303
Other financing sources:
Operating transfer in 350,000 350,000 250,000 (100,000)
Contingency (23,250) (23,250) - 23,250
Change in fund balance 175,682 175,682 232,235 56,553
FUND BALANCE BEGINNING OF YEAR 348,440 348,440 78,069 (270,371)
FUND BALANCE END OF YEAR $ 524,122 $ 524,122 $ 310,304 $ (213,818)
103
CITY OF TIGARD, OREGON
TRANSPORTATION DEVELOPMENT TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 100,622 $ 100,622 $ 179,243 $ 78,621
Interest earnings - - (213) (213)
Total revenues 100,622 100,622 179,030 78,408
EXPENDITURES:
Capital outlay 100,000 100,000 - 100,000
Change in fund balance 622 622 179,030 178,408
FUND BALANCE BEGINNING OF YEAR - - - -
FUND BALANCE END OF YEAR $ 622 $ 622 $ 179,030 $ 178,408
104
CITY OF TIGARD, OREGON
TRAFFIC IMPACT FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 137,724 $ 137,724 $ 85,518 $ (52,206)
Interest earnings 24,878 24,878 16,798 (8,080)
Miscellaneous revenues - - 3,482 3,482
Total revenues 162,602 162,602 105,798 (56,804)
EXPENDITURES:
Capital outlay 950,000 1,200,000 953,489 246,511
Change in fund balance
before other financing (uses) (787,398) (1,037,398) (847,691) 189,707
Other financing (uses):
Transfers out (294,570) (294,570) (294,570) -
Contingency (60,724) (60,724) - 60,724
Change in fund balance (1,142,692) (1,392,692) (1,142,261) 250,431
FUND BALANCE BEGINNING OF YEAR 1,167,220 1,417,220 2,060,956 643,736
FUND BALANCE END OF YEAR $ 24,528 $ 24,528 $ 918,695 $ 894,167
105
CITY OF TIGARD, OREGON
UNDERGROUND UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 51,000 $ 51,000 $ 8,754 $ (42,246)
Interest earnings 5,414 5,414 4,329 (1,085)
Total revenues 56,414 56,414 13,083 (43,331)
EXPENDITURES:
Capital outlay 300,000 300,000 95,530 204,470
Contingency (52,941) (52,941) - 52,941
Change in fund balance (296,527) (296,527) (82,447) 214,080
FUND BALANCE BEGINNING OF YEAR 604,937 604,937 589,110 (15,827)
FUND BALANCE END OF YEAR $ 308,410 $ 308,410 $ 506,663 $ 198,253
106
CITY OF TIGARD, OREGON
STREET MAINTENANCE FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 860,000 $ 860,000 $ 880,366 $ 20,366
Interest earnings - - 558 558
Total revenues 860,000 860,000 880,924 20,924
EXPENDITURES:
Capital projects 776,000 776,000 734,145 41,855
Change in fund balance
before other financing (uses) 84,000 84,000 146,779 62,779
Other financing (uses):
Transfer out (84,000) (84,000) (84,000) -
Contingency (151,765) (151,765) - 151,765
Change in fund balance (151,765) (151,765) 62,779 214,544
FUND BALANCE BEGINNING OF YEAR 304,125 304,125 283,924 (20,201)
FUND BALANCE END OF YEAR $ 152,360 $ 152,360 $ 346,703 $ 194,343
107
CITY OF TIGARD, OREGON
PARKS CAPITAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Grants $ 110,000 $ 110,000 $ 40,595 $ (69,405)
Interest earnings 13,954 13,954 6,056 (7,898)
Miscellaneous revenues 1,001,316 1,001,316 34,702 (966,614)
Total revenues 1,125,270 1,125,270 81,353 (1,043,917)
EXPENDITURES:
Capital projects 1,121,316 1,121,316 47,081 1,074,235
Contingency (150,000) (150,000) - 150,000
Change in fund balance (146,046) (146,046) 34,272 180,318
FUND BALANCE BEGINNING OF YEAR 203,738 203,738 91,994 (111,744)
FUND BALANCE END OF YEAR $ 57,692 $ 57,692 $ 126,266 $ 68,574
108
CITY OF TIGARD, OREGON
PARKS SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Grants $ - $ - $ 136,905 $ 136,905
Charges for services 175,000 175,000 568,103 393,103
Interest earnings 31,300 31,300 24,561 (6,739)
Total revenues 206,300 206,300 729,569 523,269
EXPENDITURES:
Debt Service 280,253 280,253 280,253 -
Capital projects 580,016 715,645 373,004 342,641
Total expenditures 860,269 995,898 653,257 342,641
Change in fund balance
before other financing (uses) (653,969) (789,598) 76,312 865,910
Other financing (uses):
Operating transfer out (379,812) (379,812) (379,812) -
Contingency (157,593) (157,593) - 157,593
Change in fund balance (1,191,374) (1,327,003) (303,500) 1,023,503
FUND BALANCE BEGINNING OF YEAR 2,185,472 2,321,101 2,818,659 497,558
FUND BALANCE END OF YEAR $ 994,098 $ 994,098 $ 2,515,159 $ 1,521,061
109
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, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Intergovernmental $ 150,000 $ 150,000 $ 17,020 $ (132,980)
EXPENDITURES:
Capital projects 177,967 177,967 72,613 105,354
Change in fund balance
before other financing sources (27,967) (27,967) (55,593) (27,626)
Other financing sources:
Operating transfer in - - 70,071 70,071
Change in fund balance (27,967) (27,967) 14,478 42,445
FUND BALANCE BEGINNING OF YEAR 27,967 27,967 27,967 -
FUND BALANCE END OF YEAR $ - $ - $ 42,445 $ 42,445
110
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)
111
CITY OF TIGARD, OREGON
SANITARY SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 1,654,877 $ 1,654,877 $ 1,146,645 $ (508,232)
Interest earnings 91,715 91,715 67,432 (24,283)
Total revenues 1,746,592 1,746,592 1,214,077 (532,515)
EXPENDITURES:
Public works 890,764 890,764 785,666 105,098
Capital projects 1,676,000 1,676,000 975,384 700,616
Total expenditures 2,566,764 2,566,764 1,761,050 805,714
Change in fund balance
before other financing sources (uses) (820,172) (820,172) (546,973) 273,199
Other financing (uses):
Transfers out (411,698) (411,698) (411,696) 2
Contingency (423,895) (423,895) - 423,895
Change in fund balance (1,655,765) (1,655,765) (958,669) 697,096
FUND BALANCE BEGINNING OF YEAR 9,255,084 9,255,084 9,585,252 330,168
FUND BALANCE END OF YEAR $ 7,599,319 $ 7,599,319 $ 8,626,583 $ 1,027,264
113
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, 2010
Operating and
Non - Operating Expenditures
Revenues / Expenses
Budgetary basis $ 1,214,077 $ 1,761,050
Deferred revenue 1,056 -
Change in accrued compensated absences - 3,801
Expenditures capitalized - (1,026,363)
Central services - 19,356
Depreciation expense - 621,261
Operating and non - operating
revenue and expenses - page 41 $ 1,215,133 $ 1,379,105
114
CITY OF TIGARD, OREGON
STORM SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 1,763,097 $ 1,763,097 $ 1,885,823 $ 122,726
Interest earnings 6,861 6,861 3,749 (3,112)
Total revenues 1,769,958 1,769,958 1,889,572 119,614
EXPENDITURES:
Public works 1,409,117 1,497,117 1,404,631 92,486
Capital projects 345,000 345,000 5,375 339,625
Total expenditures 1,754,117 1,842,117 1,410,006 432,111
Change in fund balance
before other financing sources (uses) 15,841 (72,159) 479,566 551,725
Other financing (uses):
Transfers out (391,935) (391,935) (391,932) 3
Contingency (40,000) (40,000) - 40,000
Change in fund balance (416,094) (504,094) 87,634 591,728
FUND BALANCE BEGINNING OF YEAR 441,292 529,293 753,276 223,983
FUND BALANCE END OF YEAR $ 25,199 $ 25,199 $ 840,910 $ 815,711
115
CITY OF TIGARD, OREGON
WATER QUALITY /QUANTITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 5,500 $ 5,500 $ 6,525 $ 1,025
Interest earnings 19,868 19,868 14,026 (5,842)
Total revenues 25,368 25,368 20,551 (4,817)
EXPENDITURES:
Capital projects 330,000 330,000 180,976 149,024
Change in fund balance
before other financing sources (uses) (304,632) (304,632) (160,425) 144,207
Other financing (uses):
Operating transfer out (115,793) (115,793) (112,742) 3,051
Contingency (56,683) (56,683) - 56,683
Change in fund balance (477,108) (477,108) (273,167) 203,941
FUND BALANCE BEGINNING OF YEAR 1,559,034 1,559,034 1,824,459 265,425
FUND BALANCE END OF YEAR $ 1,081,926 $ 1,081,926 $ 1,551,292 $ 469,366
116
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, 2010
Operating and
Non Operating Expenditures/
Revenues Expenses
Storm Sewer $ 1,889,572 $ 1,410,006
Water Quality / Quantity 20,551 180,976
Total, budgetary basis 1,910,123 1,590,982
Change in accrued compensated absences - 2,163
Expenditures capitalized - (19,080)
Services performed by other funds - 63,162
Depreciation expense - 424,395
Operating and non - operating
revenue and expenses - page 41 $ 1,910,123 $ 2,061,622
117
CITY OF TIGARD, OREGON
WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 8,510,541 $ 8,543,093 $ 7,834,978 $ (708,115)
System development charges 60,000 60,000 380,281 320,281
Interest earnings 47,857 47,857 43,339 (4,518)
Miscellaneous - - 204,427 204,427
Total revenues 8,618,398 8,650,950 8,463,025 (187,925)
EXPENDITURES:
Public works 6,607,336 6,684,888 6,008,017 676,871
Capital projects 834,578 834,578 331,814 502,764
Total expenditures 7,441,914 7,519,466 6,339,831 1,179,635
Change in fund balance
before other financing sources (uses) 1,176,484 1,131,484 2,123,194 991,710
Other financing (uses):
Transfers out (5,735,646) (5,735,646) (5,585,650) 149,996
Contingency (125,000) (125,000) - 125,000
Change in fund balance (4,684,162) (4,729,162) (3,462,456) 1,266,706
FUND BALANCE BEGINNING OF YEAR 4,771,186 4,771,186 6,246,208 1,475,022
FUND BALANCE END OF YEAR $ 87,024 $ 42,024 $ 2,783,752 $ 2,741,728
118
CITY OF TIGARD, OREGON
WATER SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
System development charges $ 85,000 $ 85,000 $ 301,166 $ 216,166
Interest earnings 4,838 4,838 2,145 (2,693)
Total revenues 89,838 89,838 303,311 213,473
EXPENDITURES:
Capital projects 230,749 230,749 9,389 221,360
Change in fund balance
before other financing sources (uses) (140,911) (140,911) 293,922 434,833
FUND BALANCE BEGINNING OF YEAR 143,237 143,237 120,466 (22,771)
FUND BALANCE END OF YEAR $ 2,326 $ 2,326 $ 414,388 $ 412,062
119
CITY OF TIGARD, OREGON
WATER CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
System development charges $ 90,000 $ 90,000 $ 300,346 $ 210,346
Other income - 750,000 - (750,000)
Interest earnings 24,564 24,564 7,588 (16,976)
Total revenues 114,564 864,564 307,934 (556,630)
EXPENDITURES:
Capital projects 7,558,611 9,058,611 3,365,255 5,693,356
Change in fund balance
before other financing sources (uses) (7,444,047) (8,194,047) (3,057,321) 5,136,726
Other financing sources (uses):
Transfer in 4,961,585 4,961,585 4,811,585 (150,000)
Debt service (150,000) (150,000) (60,190) 89,810
Issuance of debt 2,600,000 3,350,000 - (3,350,000)
Total other financing sources (uses) 7,411,585 8,161,585 4,751,395 (3,410,190)
Change in fund balance (32,462) (32,462) 1,694,074 1,726,536
FUND BALANCE BEGINNING OF YEAR 38,486 38,486 865,758 827,272
FUND BALANCE END OF YEAR $ 6,024 $ 6,024 $ 2,559,832 $ 2,553,808
120
CITY OF TIGARD, OREGON
WATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
For the fiscal year ended June 30, 2010
Operating and
Non - Operating Expenditures /
Revenues Expenses
Water $ 8,463,025 $ 6,339,831
Water SDC 303,311 9,389
Water CIP 307,934 3,365,255
Total, budgetary basis 9,074,270 9,714,475
System development revenue (669,996) -
Deferred revenue 660,732
Change in accrued compensated absences - (21,090)
Expenditures capitalized - (3,575,886)
Central services - 331,116
Depreciation expense - 1,371,793
Operating and non - operating
revenue and expenses - page 41 $ 9,065,006 $ 7,820,408
121
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, 2010
Total Total
Sanitary Storm Total
Sewer Sewer Water
Sanitary Sewer Fund $ 8,626,583 $ - $ -
Storm Sewer Fund - 840,910 -
Water Quality /Quantity Fund - 1,551,292 -
Water Fund - - 2,783,752
Water SDC Fund - - 414,388
Water CIP Fund - - 2,559,832
Fund balance - budget basis 8,626,583 2,392,202 5,757,972
Adjustments from budgetary basis to
generally accepted accounting principles basis:
Capital assets, net 16,478,637 11,470,497 45,847,180
Revenue deferred on budgetary statement - - 660,732
Deferred revenue 7,666 - -
Accrued vacation payable (15,434) (19,274) (39,206)
Long -term debt - - (2,853,868)
Total Net Assets -
generally accepted accounting - -
principles basis - pages 40 and 41 $ 25,097,452 $ 13,843,425 $ 49,372,810
122
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
Insurance Fund — Records refunds of prior years workers' compensation premiums and other insurance
related revenues.
123
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
June 30, 2010
Central Fleet /Property
Services Management Insurance
Fund Fund Fund Total
ASSETS
Current assets:
Cash and investments $ 506,547 $ 184,442 $ 927,986 $ 1,618,975
Accounts Receivable 17,830 1,947 1,167 20,944
Prepaid Expense 50,470 - - 50,470
Inventory - 12,673 - 12,673
Total assets 574,847 199,062 929,153 1,703,062
LIABILITIES
Current liabilities:
Accounts payable and accrued
liabilities 301,963 81,902 - 383,865
Accrued compensated absences 233,871 22,890 - 256,761
Total liabilities 535,834 104,792 - 640,626
NET ASSETS
Net assets, unrestricted $ 39,013 $ 94,270 $ 929,153 $ 1,062,436
125
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, 2010
Central Fleet /Property
Services Management Insurance
Fund Fund Fund Total
OPERATING REVENUES:
Charges for services $ 6,145,114 $ 1,486,917 $ - $ 7,632,031
Miscellaneous 82,228 1,002 44,474 127,704
Total operating revenues 6,227,342 1,487,919 44,474 7,759,735
OPERATING EXPENSES:
Salaries and wages 3,825,679 481,984 - 4,307,663
Contracted services 1,208,398 380,219 - 1,588,617
General, administrative and other 1,041,230 586,820 - 1,628,050
Total operating expenses 6,075,307 1,449,023 - 7,524,330
Operating income (loss) 152,035 38,896 44,474 235,405
NONOPERATING REVENUE:
Interest revenue 1,848 590 6,289 8,727
Net income (loss) 153,883 39,486 50,763 244,132
NET ASSETS - beginning of year (114,870) 54,784 878,390 818,304
NET ASSETS - end of year $ 39,013 $ 94,270 $ 929,153 $ 1,062,436
126
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal year ended June 30, 2010
Central Fleet /Property
Services Management Insurance
Fund Fund Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 6,135,372 $ 1,493,044 $ - $ 7,628,416
Payments to suppliers (2,241,436) (946,290) (271) (3,187,997)
Payments to employees (3,825,679) (481,984) - (4,307,663)
Other receipts 82,228 1,002 44,474 127,704
Net cash provided (used) by operating activities 150,485 65,772 44,203 260,460
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings collected 1,848 590 6,289 8,727
Net increase in cash and cash equivalents 152,333 66,362 50,492 269,187
Cash and investments -- beginning of the year 354,213 118,081 877,495 1,349,789
Cash and investments - -end of the year $ 506,546 $ 184,443 $ 927,987 $ 1,618,976
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss) $ 152,035 $ 38,896 $ 44,474 $ 235,405
Adjustments to reconcile operating income (loss) to net cash
provided by operating activities:
Change in assets and liabilities:
Receivables (9,742) 6,127 (271) (3,886)
Prepaids 45,854 80 - 45,934
Inventories - 1,461 - 1,461
Accounts payable (37,662) 19,208 - (18,454)
Net cash provided (used) by operating activities $ 150,485 $ 65,772 $ 44,203 $ 260,460
127
CITY OF TIGARD, OREGON
CENTRAL SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ 7,338 $ 7,338 $ 1,848 $ (5,490)
Miscellaneous - - 82,228 82,228
Total revenues 7,338 7,338 84,076 76,738
EXPENDITURES:
Policy and administration 6,617,284 6,883,450 5,819,272 1,064,178
Change in fund balance
before other financing sources (uses) (6,609,946) (6,876,112) (5,735,196) 1,140,916
Other financing sources (uses):
Interdepartmental charges 6,600,899 6,664,233 6,145,114 (519,119)
Operating transfer out (265,426) (265,426) (256,035) 9,391
Total other financing sources (uses) 6,335,473 6,398,807 5,889,079 (509,728)
Contingency (250,000) (157,430) - 157,430
Change in fund balance (524,473) (477,305) 153,883 631,188
FUND BALANCE BEGINNING OF YEAR 533,750 533,750 (114,870) (648,620)
FUND BALANCE END OF YEAR $ 9,278 $ 56,445 $ 39,014 $ (17,432)
128
CITY OF TIGARD, OREGON
FLEET /PROPERTY MANAGEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ 1,228 $ 1,228 $ 590 $ (638)
Miscellaneous - - 1,002 1,002
Total revenues 1,228 1,228 1,592 364
EXPENDITURES:
Public works 1,658,332 1,658,332 1,449,024 209,308
Change in fund balance
before other financing sources (uses) (1,657,104) (1,657,104) (1,447,432) 209,672
Other financing sources (uses):
Indirect Charges 1,658,332 1,658,332 1,486,917 (171,415)
Contingency (100,000) (100,000) - 100,000
Change in fund balance (98,772) (98,772) 39,485 138,257
FUND BALANCE BEGINNING OF YEAR 115,536 115,536 54,784 (60,752)
FUND BALANCE END OF YEAR $ 16,765 $ 16,765 $ 94,269 $ 77,505
129
CITY OF TIGARD, OREGON
INSURANCE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2010
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ 7,849 $ 7,849 $ 6,289 $ (1,560)
Miscellaneous 60,000 60,000 44,474 (15,526)
Total revenues 67,849 67,849 50,763 (17,086)
EXPENDITURES: - - - -
Change in fund balance 67,849 67,849 50,763 (17,086)
FUND BALANCE BEGINNING OF YEAR 874,095 874,095 878,390 4,295
FUND BALANCE END OF YEAR $ 941,944 $ 941,944 $ 929,153 $ (12,791)
130
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
131
CITY OF TIGARD, OREGON
SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES
For the fiscal year ended June 30, 2010
Property Add Property
Taxes Levy as Taxes
Receivable Extended Deduct Add Receivable
June 30, by Discounts (Deduct) Add Deduct June 30,
2009 Assessor Allowed Adjustments Interest Collections 2010
2009 -2010 $ - $ 13,371,853 $ (336,177) $ (42,253) $ 4,767 $ (12,625,421) $ 372,769
2008 - 2009 389,125 - 459 (21,753) 15,671 (243,487) $ 140,015
2007 -2008 92,776 - 174 1,046 8,506 (50,574) 51,928
2006 - 2007 32,993 - 64 (57) 6,199 (26,077) 13,122
2005 - 2006 5,889 - 44 2,510 2,193 (7,677) 2,959
2004 - 2005 3,952 - 31 (1,028) 468 (576) 2,847
2003 - 2004 6,437 - 18 (1,348) 554 (913) 4,748
5 531,172 5 13,371,853 5 (335,387) $ (62,883) $ 38,358 $ (12,954,725) $ 588,388
Property Taxes
Cash Receivable
Distributed as follows: Collections June 30, 2010
General Fund:
Current $ 11,610,188 $ 343,456
Prior years' levies 303,971 200,358
Total General Fund 11,914,159 543,814
Debt Service Funds:
Current 1,021,391 29,313
Prior years' levies 19,175 15,261
Total Debt Service Funds 1,040,566 44,574
Total S 12,954,725 $ 588,388
NOTE: Taxes revenue on the Governmental Funds Statement
of Revenues, Expenditures, and Changes in
Fund Balance (page 23), is reported on the modified accrual basis.
133
CITY OF TIGARD, OREGON
SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS
For the fiscal year ended June 30, 2010
Bond Transactions Interest Transactions
Outstanding Matured/ Outstanding
Bancroft Bonds Original Issue June 30, 2009 Additions Called Paid June 30, 2010 Matured Paid
Issued June 27, 2002 $ 1,307,969 $ 762,247 $ - $ 74,400 $ (74,400) $ 687,847 $ 21,825 $ (21,825)
Issued December 3, 2003 1,947,678 515,883 - - - 515,883 10,060 (10,060)
$ 1,278,130 $ - $ 74,400 $ (74,400) $ 1,203,730 $ 31,885 S (31,885)
General Obligation Bonds
Issued December 4, 2002 $ 13,000,000 $ 10,011,895 $ - $ 553,795 $ (553,795) $ 9,458,100 $ 422,768 $ (422,768)
Issued June 21, 2010 $ 7,250,000 $ - $ 7,250,000 - $ - $ 7,250,000 $ - $ -
$ 10,011,895 87,250,000 $ 553,795 $ (553,795) $ 16,708,100 $ 422,768 $ (422,768)
1 34.
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF LONG -TERM NOTES PAYABLE
June 30, 2010
Issued - January 23, 2002
3.00% to 4.35%
Original Issue - $ 2,290,248
Total
Payment Coupon Debt
Date Principal Interest Rate Service
January 1, 2011 259,053 22,795 4.25% 281,848
January 1, 2012 270,925 11,785 4.35% 282,710
Totals $ 529,978 $ 34,580 $ 564,558
135
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF BANCROFT IMPROVEMENT BONDS
June 30, 2010
Issued Issued
June 27, 2002 December 3, 2003
Year of Total Requirements 7.25% 3.90%
Maturity Principal Interest Principal Interest Principal Interest
2009 -2010 $ 149,876 $ - $ - $ - $ 149,876 $ -
2010 -2011 133,593 59,789 54,200 49,174 79,393 10,615
2011 -2012 140,720 52,661 58,200 45,173 82,520 7,488
2012 -2013 148,271 45,115 62,500 40,877 85,771 4,238
2013 -2014 111,243 37,123 67,100 36,262 44,143 861
2014 -2015 72,100 31,311 72,100 31,311 - -
2014 -2019 447,927 69,123 447,927 69,123 - -
Totals $ 1,203,730 $ 295,122 $ 762,027 $ 271,920 $ 441,703 $ 23,202
136
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF GENERAL OBLIGATION BONDS
June 30, 2010
Fiscal Issued: December 4, 2002 Issued: June 21, 2010
Year of Total Debt 3.00% to 4.75% 4.35%
Maturity Requirement Principal Interest Principal Interest
2010 -2011 1,879,237 571,890 404,493 605,000 297,854
2011 -2012 1,923,816 590,281 384,477 660,000 289,058
2012 -2013 1,917,466 613,891 363,227 680,000 260,348
2013 -2014 1,889,760 623,787 340,206 695,000 230,767
2014 -2015 1,888,054 656,991 315,527 715,000 200,536
2016 -2020 9,285,133 3,728,911 1,143,138 3,895,000 518,084
2021 -2025 2,928,692 2,672,349 256,343 - -
$ 21,712,158 $ 9,458,100 $ 3,207,411 $ 7,250,000 $ 1,796,647
137
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 Paae
Financial Trends 125 - 133
These schedules contain trend information to help the reader understand how financial
performance has changed over time.
Revenue Capacity 134 - 141
These schedules contain information to help the reader assess the City's most significant
local revenue source, property taxes.
Debt Capacity 142 - 147
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 148 - 150
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 151 - 153
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.
139
CITY OF TIGARD, OREGON
NET ASSETS BY COMPONENT
for the last eight fiscal years
(accrual basis of accounting)
Fiscal Year
2003 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 - 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.
141
Fiscal Year
2006 2007 2008 2009 2010
$ 168,577,473 $ 173,401,138 $ 177,656,465 $ 179,584,222 $ 175,233,362
2,812,994 1,490,484 1,992,734 1,540,638 6,872,512
21,685,865 25,234,231 23,053,474 18,091,356 15,469,788
193,076,332 200,125,853 202,702,673 199,216,216 197,575,662
58,058,208 64,000,824 68,398,209 68,738,562 70,942,446
3,761,976 3,783,324 3,783,324 3,783,324 -
20,480,106 18,463,817 15,826,866 16,184,644 17,371,241
82,300,290 86,247,965 88,008,399 88,706,530 88,313,687
226,635,681 237,401,962 246,054,674 248,322,784 246,175,808
6,574,970 5,273,808 5,776,058 5,323,962 6,872,512
42,165,971 43,698,048 38,880,340 34,275,999 32,841,029
$ 275,376,622 $ 286,373,818 $ 290,711,072 $ 287,922,745 $ 285,889,349
142
CITY OF TIGARD, OREGON
CHANGES IN NET ASSETS
for the last eight 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
Community development 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
Community development 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.
143
Fiscal Year
2006 2007 2008 2009 2010
$ 11,241,521 $ 11,656,248 $ 13,678,913 $ 18,365,997 $ 19,832,642
3,078,772 2,383,009 2,373,710 2,468,981 8,563,893
4,669,452 4,714,636 5,186,834 7,238,839 4,846,494
7,447,828 4,398,213 3,992,478 5,997,644 1,511,956
935,359 153,319 354,664 526,825 548,987
27,372,932 23,305,425 25,586,599 34,598,286 35,303,972
1,454,150 1,461,458 1,963,223 1,597,413 1,379,105
1,391,158 1,533,391 1,585,105 1,920,640 2,061,622
7,291,602 7,452,480 6,792,833 7,624,478 7,880,598
10,136,910 10,447,329 10,341,161 11,142,531 11,321,325
$ 37,509,842 $ 33,752,754 $ 35,927,760 $ 45,740,817 $ 46,625,297
146,798 151,448 168,232 180,425 232,384
2,165,451 1,866,123 1,377,855 952,652 1,751,341
4,463,283 3,982,018 2,331,834 1,249,995 1,490,701
1,015,976 1,146,301 1,524,653 1,463,736 108,940
133,509 1,537,714 739,171 153,447 199,506
2,596,223 3,103,521 199,112 305,398
7,925,017 11,279,827 9,245,266 4,199,367 4,088,270
1,555,358 1,641,740 2,322,462 1,348,750 1,117,987
1,176,816 1,190,521 1,593,097 1,484, 627 1,872, 545
6,953,809 6,336,186 7,002,872 7,417,827 7,834,978
6,077,864 3,886,120 136,331 834,660 1,022,045
15,763,847 13,054,567 11,054,762 11,085,864 11,847,555
$ 23,688,864 $ 24,334,394 $ 20,300,028 $ 15,285,231 $ 15,935,825
CITY OF TIGARD, OREGON
CHANGES IN NET ASSETS (CONTINUED)
for the last eight 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) - - 3,447,895
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
Transfers between Governmental and Business -type - - -
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
Transfers between Governmental and Business -type - - -
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.
145
Fiscal Year
2006 2007 2008 2009 2010
$ (19,447,915) $ (12,025,598) $ (16,341,333) $ (30,398,918) $ (31,215,702)
5,626,937 2,607,238 713,601 (56,667) 526,230
$ (13,820,978) $ (9,418,360) $ (15,627,731) $ (30,455,585) $ (30,689,471)
$ 10,804,524 $ 11,552,817 $ 9,133,664 $ 12,526,541 $ 16,070,846
3,042,187 3,835,007 4,551,169 3,887,078 4,548,520
3,288, 530 - - - -
1,863,706 1,836,291 2,912,647 8,925,520 6,993,245
922,508 1,548,735 1,503,619 947,247 308,853
513,943 302,269 817,054 626,075 376,884
1,276,800
20,435,398 19,075,119 18,918,153 26,912,461 29,575,148
580,004 1,050,352 1,039,593 649,231 153,300
94,427 147,310 150,015 105,567 204,427
- - - - (1,276,800)
674,431 1,197,662 1,189,608 754,798 (919,073)
$ 21,109,829 $ 20,272,781 $ 20,107,761 $ 27,667,259 $ 28,656,075
$ 987,483 $ 7,049,521 $ 2,576,820 $ (3,486,457) $ (1,640,554)
6,301,368 3,804,900 1,903,209 698,131 (392,843)
$ 7,288,851 $ 10,854,421 $ 4,480,029 $ (2,788,325) $ (2,033,396)
CITY OF TIGARD, OREGON
FUND BALANCES OF GOVERNMENTAL FUNDS
for the last eight fiscal years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010
General Fund
Reserved $ 58,523 $ 69,069 $ 54,632 $ 20,291 $ 209,378 $ - $ 419,488 $ 273,726
Unreserved 7,878,589 8,343,762 8,131,112 8,368,793 9,716,643 10,794,057. 7,338,828 7,067,526
Total general fund $ 7,937,112 $ 8,412,831. $ 8,185,744 $ 8,389,084 $ 9,926,021 $ 10,794,057 $ 7,758,316 $ 7,341,252
All other governmental funds
Reserved $ 15,612,154 $ 7,198,519 $ 4,821,174 $ 2,719,998 $ - $ - $ - $ -
Unreserved, reported in:
Special revenue funds 8,355,147 7,282,391 9,253,467 10,208,277 13,445,092 12,481,406 11,097,739 8,094,802
Debt service funds - - - 1,811,861 2,027,633 682,960 167,160 1,927,247
Capital projects funds 9,050 8,971 - 1,589,018 1,087,826 1,309,774 1,373,469 4,945,265
Total all other governmental funds $ 23,976,351 S 14,489,881 9 14,074,641 S' 16,329,154 S 16,560,551 6 14,474,140 9 12,638,3 9 14,967,314
'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.
CITY OF TIGARD, OREGON
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
for the last eight fiscal years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006
REVENUES
Taxes $ 10,453,992 $ 9,775,325 $ 10,334,295 $ 10,817,886
Franchise fees 2,567,881 2,431,324 2,670,050 3,042,187
Special assessments 542,816 568,971 373,141 1,421,765
Licenses and permits 3,505,499 3,668,335 4,442,222 4,852,719
Intergovernmental revenues 4,837,982 5,456,940 5,134,991 5,285,744
Charges for service 1,539,676 1,819,907 2,354,372 2,689,485
Fines and forfeitures 480,963 613,785 646,406 702,469
Interest earnings 902,312 880,070 836,359 903,637
Miscellaneous 424,525 420,390 280,411 502,951
Total revenues 25,255,646 25,635,047 27,072,247 30,218,843
EXPENDITURES
Current operating:
Community services 8,692,327 9,014,200 10,750,344 11,377,118
Public works 2,236,753 2,104,617 2,172,875 2,273,569
Community development 3,628,238 3,891,491 4,316,517 4,709,433
Policy and administration 3,884,883 4,051,476 4,334,147 4,564,400
Citywide support - - - -
Debt service:
Principal 2,344,496 1,300,979 1,285,275 1,526,286
Interest 302,674 951,072 748,417 697,305
Capital outlay 6,613,827 13,210,578 4,106,999 2,352,123
Total expenditures 27,703,198 34,524,413 27,714,574 27,500,234
Excess (deficiency) of revenues
over (under) expenditures (2,447,552) (8,889,366) (642,327) 2,718,609
OTHER FINANCING SOURCES (USES)
Proceeds from bond / long -term note 14,509,175 1,947,678 - -
Operating transfers in 3,747,649 2,581,668 2,893,435 4,046,802
Operating transfers out (3,747,649) (2,581,668) (2,893,435) (4,046,802)
Total other financing sources (uses) 14,509,175 1,947,678 - -
Net change in fund balances $ 12,061,623 $ (6,941,688) $ (642,327) $ 2,718,609
Debt service as a percentage of non - capital expenditures 14.35% 11.81% 9.43% 9.70%
*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.
148
Fiscal Year
2007 2008 2009 2010
$ 11,553,044 $ 12,137,977 $ 12,405,880 $ 16,078,788
3,835,007 4,551,169 3,887,078 4,548,520
163,379 120,678 87,208 284,202
3,011,348 1,871,841 1,282,438 1,229,880
5,970,228 7,807,667 7,560,542 6,358,393
3,989,491 3,469,358 2,536,590 3,083,087
850,335 847,069 804,128 915,524
1,507,065 1,475,808 930,382 300,126
283,712 747,532 513,392 249,180
31,163,609 33,029,099 30,007,640 33,047,700
11,918,362 13,801,110 18,214,907 19,418,498
2,383,009 2,757,289 3,463,390 5,129,767
4,772,780 5,191,797 7,184,355 4,674,008
4,717,967 397,510 907,661 787,209
23,000 - 796,995 -
166,571 922,907 794,853 875,513
630,916 454,403 530,403 557,061
3,543,422 6,319,092 3,940,781 7,373,043
28,156,027 29,844,108 35,833,344 38,815,099
3,007,582 3,184,991 (5,825,705) (5,767,399)
7,250,000
2,667,149 4,896,127 3,342,328 4,965,010
(2,667,149) (9,299,491) (2,357,267) (3,688,210)
(4,403,364) 985,061 8,526,800
$ 3,007,582 $ (1,218,373) $ (4,840,644) $ 2,759,401
3.35% 6.22% 4.34% 4.71%
149
CITY OF TIGARD, OREGON
GOVERNMENTAL REVENUES
For the last eight fiscal years*
Program Revenues General Revenues
Gain (Loss)
Fiscal Charges Operating Capital on Disposition
Year Ended for Grants and Grants and Intergovernmental Interest Donated of Capital
June 30 Services Contributions Contributions Taxes 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
2009 3,846,808 153,447 199,112 12,526,541 3,887,078 8,925,520 947,247 - - 626,075 31,111,828
2010 3,583,366 199,506 305,398 16,070,846 4,548,520 6,993,245 308,853 - - 376,884 32,386,618
*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. O
LC)
CITY OF TIGARD, OREGON
GOVERNMENTAL EXPENSES BY FUNCTION
For the last eight fiscal years*
Fiscal Interest on
Year Ended Community Community Policy and Long -Term Storm
June 30 Services Public Works Development 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 3,992,478 526,825 1,963,223 1,585,105 6,792,833 33,286,797 L
2009 18,365,997 2,468,981 7,238,839 5,997,644 526,825 1,597,413 1,920,640 7,624,478 45,740,817
2010 19,832,642 8,563,893 4,846,494 1,511,956 548,987 1,379,105 2,061,622 7,880,598 46,625,297
*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.
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
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
2009 12,405,880 3,887,078 1,282,438 7,560,542 2,536,590 804,128 1,530,983 30,007,640
2010 16,078,788 4,548,520 1,229,880 6,358,393 3,083,087 915,524 833,508 33,047,700
* Includes special assessments collections and private donations.
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
152
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
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
2009 18,214,907 10,647,745 1,704,656 3,940,781 1,325,256 35,833,344
2010 19,418,498 9,803,775 787,209 7,373,043 1,432,574 38,815,099
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
153
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
2001 $ 2,903,403,430 $ 229,530,723 $ 121,662,548 $ 3,254,596,701 $ 3 $ 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%
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%
2009 4,306,936,640 247,691,980 187,315,080 4,741,943,700 2.69 8,161,684,333 58.10%
2010 4,476,784,320 249,636,920 187,721,070 4,914,142,310 2.73 7,738,192,442 63.51%
Assessed Value by Type public utility
for the fiscal year ended 2010 property
Personal Property 4%
5%
Real Property ili
91%
* per $1,000 of assessed value
Source: Washington County Assessment and Taxation
154
CITY OF TIGARD, OREGON
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(Dollars per $1,000 of Assessed Value rounded to the nearest cent)
For the last ten fiscal years
City of Tigard Overlapping Rates
Tigard/ Washington
Fiscal Metzger Tualatin Beaverton Tualatin County Total Direct
Year Direct Rates Water School School Valley Rural Fire Portland Other &
Ended Perm Debt Urban District Washington District District Fire & Rescue District Community Taxing Overlapping
June 30 Rate Svc Renewal Total Combined County No. 23 -1 No. 48 District No. 2 College Agencies Rates
2001 $ 2.51 $ 0.09 $ - $ 2.60 $ 0.25 $ 2.53 $ 7.24 $ 6.12 $ 1.59 $ 1.30 $ 0.37 $ 0.70 $ 22.70
2002 2.51 0.07 - 2.58 0.23 2.96 7.04 6.37 1.83 1.31 0.55 0.69 23.56
2003 2.51 0.39 - 2.90 0.23 2.91 7.90 6.56 1.82 1.12 0.49 0.63 24.56
2004 2.51 0.17 - 2.68 0.22 2.90 7.88 8.01 1.83 1.12 0.51 0.62 25.77
2005 2.51 0.19 - 2.70 0.13 2.87 7.79 6.60 1.83 1.12 0.51 0.62 24.16
2006 2.51 0.21 - 2.72 - 2.84 7.85 7.98 1.82 1.12 0.50 0.63 25.45
2007 2.51 0.22 - 2.73 - 2.45 7.67 6.29 1.82 1.12 0.49 0.60 23.17 to
to
2008 2.51 0.23 0.01 2.75 - 2.44 7.59 6.74 1.56 1.12 0.28 0.61 23.09
2009 2.51 0.18 0.01 2.70 - 2.39 7.52 6.56 1.54 1.12 0.50 0.70 23.04
2010 2.51 0.21 0.06 2.78 - 2.98 7.65 6.88 1.89 1.69 0.63 0.75 25.26
Taxes levied may be composed of three types of levies: (1) a base operating levy, (2) a special operating levy approved by the voters in the district and (3) a debt service levy. Each
district with outstanding General Obligation bonded debt is required to levy taxes sufficient with other available funds, to meet principal and interest payments when due.
All operating levies were converted to a permanent rate by the passage of measure 50 in 1997. Permanent rates can not be changed. Prior to Measure 50, rates were dependent on
both the levy and assessed value.
Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the County. The County collects all taxes against property in the
County (except assessments for improvements charged to benefited property) and distributes taxes collected at least monthly. No charges are made to the taxing districts for these
services.
NOTE: - Not all taxing districts are charged on each parcel of property, actual rates on tax bills are a combination of the above depending upon the location of the parcel and the
school rlistrict and sewer and water district boundaries. Total overlapping tax rates for property in Tigard in 2010 ranged from $13.44/$1,000 to $16.43/$1,000.
Source: Washington County Department of Assessment and Taxation.
CITY OF TIGARD, OREGON
PRINCIPAL PROPERTY TAXPAYERS
For current and nine years ago
2010 2001
Percentage Percentage
Taxable of Total City Taxable of Total City
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Pacific Realty Associates $ 178,231,550 1 3.63% $ 116,451,600 1 3.58%
Washington Square LLC 112,841,214 2 2.30% 75,574,610 2 2.32%
Lincoln Center LLC 81,321,250 3 1.65% - - 0.00%
Verizon Northwest Inc. 60,329,044 4 1.23%
- -
Sprint Nextel Corp. 55,309,352 5 1.13% 19,831,446 8 0.61%
Park 217 & Nelson Business Park 37,090,568 6 0.75% 75,068,410 3 2.31%
Portland General Electric 30,530,230 7 0.62% 20,991,700 6 0.64%
Northwest Natural Gas 27,936,896 8 0.57%
- -
Macy's Department Stores 21,896,667 9 0.45%
- -
Holland Holdings 1 Arbor Heights 20,298,056 10 0.41% - - -
Constance Robinson (Trust) - - 17,997,260 9 0.55%
The May Department Stores - - 16,782,000 10 0.52%
GTE Northwest - - 50,418,106 4 1.55%
Archstone Communities Trust - - 21,124,330 5 0.65%
Portland Hotel Associates - - 20,043,600 7 0.62%
$ 625,784,827 12.73% $ 434,283,062 13.35%
Source: Washington County Assessment & Taxation records.
156
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
Jun 3 0 Levy Collections Collections Collections Collections Levy Taxes Levy
2001 $ 8,479,977 $ 8,017,056 94.54% $ 241,309 $ 8,258,365 97.39% $ 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 12,016,674 96.02% 425,546 3.40%
2009 12,732,804 12,005,730 94.29% 142,047 12,147,777 95.41% 531,172 4.17%
2010 13,371,853 12,625,421 94.42% 329,304 12,954,725 96.88% 572,298 4.28%
Taxes are levied as of July 1 each year and are payable in three installments, without interest, on November 15, February 15, and May
15. Interest is charged at the rate of 1% per month on delinquent taxes. Tax liens are foreclosed after three year's delinquencies.
Taxpayers receive a discount of 3% for payment in full by November 15 and 2% for payment of two thirds of the total taxes due.
City Property Taxes Levied
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000 ■ ■ ■ ■ ■ ■ ■ ■ ■
6,000,000 ■ • • • • • ■ ■ ■
4,000,000 ■ ■ ■ ■ ■ ■ ■ ■ ■
2,000,000
■
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
157
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
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% 1,264,746
2009 23,100 87,208 377.52% 1,353,832
2010 74,400 284,202 381.99% 1,144,030
(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
158
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
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% o
2008 922,907 454,403 1,377,310 29,844,108 4.62%
2009 794,853 530,403 1,325,256 35,833,344 3.70%
2010 875,513 557,061 1,432,574 38,815,099 3.69%
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
159
CITY OF TIGARD, OREGON
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND
NET BONDED DEBT PER CAPITA
For the last ten fiscal years
Gross
General Ratio of
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
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% 15.55
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 4,572,357,820 10,547,958 296,805 10,251,153 0.22% 219.44
2009 47,460 4,741,943,700 10,011,895 258,769 9,753,126 0.21% 205.50
2010 47,595 4,914,142,310 16,708,100 101,190 16,606,910 0.34% 348.92
** Excludes bond anticipation notes payable.
Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of
Assessment and Taxation.
160
CITY OF TIGARD, OREGON
COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT
June 30, 2010
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% 0 182,900
Sub -Total of Overlapping Debt 848,691,671 99,640,101
City of Tigard 16,708,100 100.0000% 16,708,100
Total for Overlapping Debt $ 865,399,771 $ 116,348,201
Source: Oregon State Treasury Debt Management Division
161
CITY OF TIGARD, OREGON
COMPUTATION OF LEGAL DEBT MARGIN
For the last ten fiscal years
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Debt limit $ 130,623,970 $ 138,720,271 $ 144,143,825 $ 154,556,716 $ 162,072,994 $ 122,637,144 $ 130,339,955 $ 137,170,735 $ 142,258,311 $ 147,424,269
Total net debt applicable to limit 245,000 245,000 19,526,586 14,428,648 12,060,540 9,289,259 9,724,836 10,547,958 10,011,895 16,708,100
Legal debt margin $ 130,378,970 $ 138,475,271 $ 124,617,239 $ 140,128,068 $ 150,012,454 $ 113,347,885 $ 120,615,119 $ 126,622,777 $ 132,246,416 $ 130,716,169
Total net debt applicable to the limit
as a percentage of debt limit 0.19% 0.18% 13.55% 9.34% 7.44% 7.57% 7.46% 7.69% 7.04% 11.33%
N
Legal Debt Margin Calculation at June 30, 2010 to
True cash value (2009 -2010) $ 4,914,142,310
3 %
Debt Limit (3% of total property real market value) 147,424,269
Debt applicable to limit:
Gross bonded debt $ 17,911,830
Excludable debt - Bancroft improvement bonds (1,203,730)
Debt subject to limitation 16,708,100
Legal debt margin - amount available for future indebtedness $ 130,716,169
Total net debt applicable to the limit
as a percentage of debt limit 11.33%
Note: Pursuant to Oregon Revised Statutes 287.004, outstanding general obligation debt is limited to
3 percent of real market value
Source: Washington County Department of Assessment and Taxation
CITY OF TIGARD, OREGON
RATIO OF DEBT BY TYPE
For the last ten fiscal years
Business -Type
Governmental Activities Activities
(1)
Fiscal Year General Long -Term Percentage (2)
Ended Obligation Bancroft Note Payable Notes Payable Total Primary of Personal Per
June 30 Population Bonded Debt Bonded Debt Debt Debt Government Income Capita
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 1.91% 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 275.33
2009 47,460 10,011,895 1,278,130 777,296 2,853,868 14,921,189 N/A 314.40
2010 47,595 16,708,100 1,203,730 529,978 2,853,868 21,295,676 N/A 447.44
(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.
163
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
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 7.50%
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%
2009 47,460 99,915 12,685 N/A N/A 9.70%
2010 47,595 103,249 12,913 N/A N/A 8.40%
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 County'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 1.
40,000 Ar!
35,000
30,000 -
25,000
20,000
15,000
10,000 • 0 410
5,000
0 , 1 1 1 1 1 1 , ,
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-- Population School Enrollment
164
CITY OF TIGARD, OREGON
PRINCIPAL EMPLOYERS
For current year and nine years ago
2010 2001
Percentage Percentage
of total City of total City
Employer Employees Rank employment Employees Rank employment
HSBC Card Services 948 1 3.36% - - -
Tigard - Tualatin School District 779 2 2.76% - - -
Macy's 704 3 2.49% 502 2 2.18%
Nordstrom 579 4 2.05% 461 3 2.01%
Oregon Public Employees Retirement 396 5 1.40% - - -
Providence Health System 377 6 1.34% - - -
Costco Wholesale Corporation 300 7 1.06 %0 - - -
City of Tigard 266 8 0.94% - - -
The Cheesecake Factory 250 9 0.89% - - -
Home Depot 241 10 0.85% - - -
Renaissance Credit Services - - 1,116 1 4.86%
Servicemaster Building Maintenance - - 250 4 1.09%
Rockwell Collins Flight Dynamics - - 249 5 1.08%
4,840 17.14% 2,578 11.22%
Source: City of Tigard Adopted Budget and Tigard Chamber of Commerce.
165
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
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
2009 4 1,944,775 42 (2) 9,324,154
2010 4 2,003,118 123 (2) 27,972,462
(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.
166
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
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Function / Promam
Community services
Police 76.33 75.50 75.00 76.00 77.00 78.00 80.00 93.00 93.00 90.10
Library 31.00 30.70 30.65 28.90 33.20 33.20 34.20 41.90 41.90 38.80
Parks maintenance (a) - - - - - - - -
Public works
Administration 6.00 6.50 7.00 7.00 7.85 7.60 7.60 8.85 8.85 9.35
Parks maintenance (a) 9.50 9.75 10.25 11.00 10.75 10.75 10.75 9.75 9.75 9.75
Street maintenance 11.50 9.35 9.20 8.50 8.00 7.00 7.00 7.00 7.00 7.00
Fleet maintenance 3.00 3.22 3.10 3.25 3.00 2.50 2.50 2.50 2.50 2.00
Property management 3.00 3.38 3.25 3.25 3.25 3.25 3.25 4.25 4.25 4.25
Engineering (f) 15.50 16.00 16.00 15.50 15.50 15.50 10.50 10.50 10.50 11.80
Community development
Administration 3.00 3.00 3.00 3.00 3.00 3.00 2.00 3.00 3.00 2.00
Building inspection 12.50 13.50 13.50 16.30 18.30 18.80 19.80 17.80 6.20 6.24
Current planning 9.00 9.00 9.00 8.20 8.20 8.20 8.20 10.20 10.20 7.56
Long range planning 4.00 5.00 5.00 5.00 5.00 7.00 8.00 7.00 7.00 7.00
Development Engineering (b) 5.00 5.00 4.00 1.60
Downtown Redevelopment (c) 1.00 1.00 1.00
Policy and Administration
City management 5.80 5.80 5.80 4.00 3.80 3.80 3.80 5.30 5.30 4.50
Human resources 3.50 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00
Information technology 4.50 8.00 8.00 6.00 6.00 7.00 8.00 7.00 7.00 7.00
Risk management 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.50 2.50 2.30
Finance administration 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 5.30
Financial operations 10.75 10.80 10.80 10.80 10.80 10.80 10.80 5.50 5.50 4.50
Utility Billing (d) 6.50 6.50 5.50
Office services 7.00 7.00 7.00 7.30 7.30 7.30 7.30 4.50 4.50 3.05
City Recorder /Records (e) 3.00 3.00 3.25
Municipal court 4.00 4.00 3.00 3.00 3.00 3.00 100 3.25 3.25 3.50
Sanitary Sewer 7.00 6.93 6.95 7.25 7.75 7.25 7.35 5.35 5.35 5.25
Storm Sewer 7.00 6.92 6.95 7.75 8.25 7.25 6.35 7.10 7.10 7.00
Water 17.00 17.95 18.00 17.00 16.25 16.50 17.30 16.30 16.30 13.00
Total 254.88 261.30 260.45 258.00 265.20 266.70 271.70 296.05 283.45 267.60
Source: City of Tigard 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 2007 -08.
(e) City Recorder /Records was budgeted with Office Services until FY 2008 -09.
(f) Engineering was budgeted with Development Services until FY 2009 -10.
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CITY OF TIGARD, OREGON
OPERATING INDICATORS BY FUNCTION /PROGRAM
For the last eight fiscal years
Fiscal Year
Functions /Programs 2003 2004 2005 2006 2007 2008 2009 2010
Governmental activities:
Community services
Police - number of traffic citations issued 6,815 6,815 6,006 6,800 6,979 6,383 6,925 9,101
Police- number of calls for service 49,333 49,333 53,754 51,062 51,000 51,377 50,115 51,158
Library- number of items in collection 115,618 115,618 125,570 143,500 156,500 176,210 193,710 216,110
Library- materials checked out each year 685,000 685,000 728,250 850,000 918,540 1,131,093 1,249,462 1,462,304
Public works
Acres of park land maintained 170 170 176 176 180 184 189 189
Crack sealing completed annually (linear feet) 98,000 98,000 150,000 151,000 160,000 160,000 160,000 160,000
Vehicles maintained to industry standard 140 140 144 148 150 153 158 160
Community development
Number of inspections (Tigard) 14,200 14,200 21,000 19,550 23,000 23,500 7,778 8,700
Number of permits (all types) in Tigard 3,300 3,300 3,600 3,351 4,500 4,850 2,278 3,025
Number of development applications 400 400 430 374 507 450 508 370
Policy and administration
Number of job applications 1,800 1,800 1,900 2,000 2,000 2,300 2,215 1,900
Laptops and computers to maintain 325 325 445 500 540 435 451 488
Insured value of City's real property (in millions) $ 27.9 $ 27.9 $ 38.8 $ 40.8 $ 46.2 $ 73.5
Number of utility bills sent 106,055 106,055 109,854 112,775 113,502 115,574 114,500 116,800
Average fine amount collected $ 68 $ 68 $ 78 $ 97 $ 90 $ 94 $ 90 $ 90
Business -type activities:
Sewer
Miles of sewer lines cleaned (annual goal) 53.2 53.2 48.5 50.8 51.6 53.4 46.6 40.7
Miles of sewer lines video inspected (annual goal) 20.7 20.7 26.1 21.8 22.1 23.0 23.2 23.3
Storm Water
Miles of storm sewer lines leaned 30.2 30.2 13.7 28.5 29.6 43.6 30.2 30.6
Number of Water Quality facilities 60 60 62 70 73 75 78 72
Total number of catch basins cleaned 3,867 3,867 3,915 4,045 4,150 4,915 4,437 4,437
Water
Number of accounts 16,712 16,712 17,022 17,300 17,400 17,870 17,900 17,900
Number of main breaks repaired 15 15 10 10 10 20 10 10
*Fiscal year 2002 -03 was the first year that the new reporting requirements of GASB 34 were
implemented at the City of Tigard.
Source: City of Tigard Finance Department
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CITY OF TIGARD, OREGON
CAPITAL ASSETS STATISTICS BY FUNCTION
For the last eight fiscal years
Fiscal Year
Functions /Programs 2003 2004 2005 2006 2007 2008 2009 2010
Governmental activities:
Community services
Police stations 1 1 1 1 1 1 1 1
Library buildings 1 1 1 1 1 1 1 1
Public works
Number of parks 11 13 13 13 13 13 14 14
Acres of park and greenspaces 293.5 347.0 347.0 347.0 348.0 348.0 396.0 396.0
Miles of streets 142.5 150.0 150.0 150.0 150.0 150.0 150.0 150.0
Community development
See Note
Policy and administration
City -owned building facilities 4 5 5 5 5 5 5 5
Business -type activities:
Sewer
Total miles of sanitary sewer lines 142.0 146.6 148.0 152.8 160.4 160.4 161.0 162.8
Storm Water
Total miles of storm sewer lines 111.0 110.6 113.0 116.6 130.9 131.0 131.0 131.0
Number of Water Quality facilities 45 60 62 62 77 77 79 79
Water
Water mains in miles 210 210 220 224 225.1 225.1 225.1 235.0
Number of reservoirs 13 13 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.
169
AUDIT COMMENTS AND
DISCLOSURE REQUIRED BY STATE
REGULATIONS
1 11111 11i,,
GROVE, MUELLER& SWANK, P.C.
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
475 Cottage Street NE, Suite 200, Salem, Oregon 97301
(503) 581 -7788
INDEPENDENT AUDITOR'S REPORT
REQUIRED BY OREGON STATE REGULATIONS
Board of Directors
City of Tigard, Oregon
Tigard, Oregon
We have audited the basic financial statements of the City of Tigard, Oregon as of and for the year ended June 30,
2010, and have issued our report thereon dated December 30, 2010. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America.
Compliance
As part of obtaining reasonable assurance about whether the City of Tigard, Oregon's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative
Rules 162 -10 -000 through 162 -10 -320 of the Minimum Standards for Audits of Oregon Municipal Corporations,
noncompliance with which could have a direct and material effect on the determination of financial statements
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.
We performed procedures to the extent we considered necessary to address the required comments and disclosures
which included, but were not limited to the following:
■ Deposit of public funds with financial institutions (ORS Chapter 295).
■ Indebtedness limitations, restrictions and repayment.
■ Budgets legally required (ORS Chapter 294).
• Insurance and fidelity bonds in force or required by law.
• Programs funded from outside sources.
• Highway revenues used for public highways, roads, and streets.
• Authorized investment of surplus funds (ORS Chapter 294).
■ Public contracts and purchasing (ORS Chapters 279A, 279B, 279C).
• Accountability for collecting or receiving money by elected officials - no money was collected or
received by elected officials.
In connection with our testing nothing came to our attention that caused us to believe the City was not in substantial
compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon
Revised Statutes as specified in Oregon Administrative Rules 162 -10 -000 through 162 -10 -320 of the Minimum
Standards for Audits of Oregon Municipal Corporations.
173
OAR 162 -10 -0230 Internal Control
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.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not
designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses
and, therefore, there can be no assurance that all such deficiencies have been identified.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance. A material weakness is a deficiency, or combination of deficiencies in internal control,
such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be
prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that
we consider to be material weaknesses.
This report is intended solely for the information and use of the City Council and management of the City of
Tigard, Oregon and the Oregon Secretary of State and is not intended to be and should not be used by anyone other
than these parties.
GROVE, MUELLER & SWANK, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
Charles A. Swank, A Shareholder
December 30, 2010
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