Loading...
CAFR Report - 1986-1987 1 1 CITY OF TIGARD, OREGON 1 COMPREHENSIVE � ANNUAL FINANCIAL REPORT ' Fiscal Year Ended June 30, 1987 I I I I I I CITY OF TIGARD, OREGON r I COMPREHENSIVE ANNUAL FINANCIAL REPORT fiscal year ended June 30, 1987 I I I I re ared by the City of Tigard - Department P Y Y of Finance g P R. Wayne Lowry, Director of Finance U I t 11 CITY OF TIGARD, OREGON TABLE OF CONTENTS 11 Page INTRODUCTORY SECTION: Letter of Transmittal i -viii Mayor and City Council Members ix II Organization Chart x Certificate of Achievement for Excellance in Financial Reporting xi II FINANCIAL SECTION: ACCOUNTANTS' REPORT 1 il GENERAL PURPOSE FINANCIAL STATEMENTS ( "Liftable" Financial Statements): Combined Balance Sheet - All Fund Types and 11 Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Govern - II mental Fund Types 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (Non -GAAP Basis) and Actual - All Governmental Fund Types 4 II Combined Statement of Revenues, Expenses and Changes in Retained Earnings /Fund Balance - All Proprietary Fund Types and Similar I Trust Fund 5 Combined Statement of Changes in Financial Position - All Proprietary Fund Types II and Similar Trust Fund 6 Notes to General Purpose Financial Statements 7 SUPPLEMENTARY DATA (Combining and Individual I Fund and Account Group Statements and Other Financial Schedules): General Fund: II Schedule of Revenues and Expenditures - Budget and Actual 26 Special Revenue Funds: Combining Balance Sheet 27 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Generally Accepted Accounting Principles Basis 28 1 Schedules of Revenues and Expenditures - Budget and Actual: Federal Revenue Sharing Fund 29 11 State Tax Street Fund 30 Streets SDC Fund 31 Parks SDC Fund 32 County Road Levy Fund 33 II County Gas Tax Fund 34 I I II CITY OF TIGARD OREGON TABLE OF CONTENTS, Continued I Page FINANCIAL SECTION, Continued: I SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules), Continued: I Special Assessments Fund: Schedule of Revenues and Expenditures - Budget and Actual 35 I Enterprise Funds: Combining Balance Sheet 36 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 37 I/ Combining Statement of Changes in Financial Position 38 Schedules of Revenues and Expenditures - Budget I and Actual: Sewer Fund 39 Storm Drainage Fund 40 I Fiduciary Funds: - Combining Balance Sheet 41 Statement of Changes in Assets and Liabilities Deferred Compensation Fund 42 I General Fixed Assets Account Group: Schedule of General Fixed Assets - By Sources 43 Schedule of Changes in General Fixed Assets - I By Sources 44 Schedule of General Fixed Assets - By Function and Activity 45 Schedule of Changes in General Fixed Assets - I By Function and Activity 46 Other Schedules: Schedule of Property Tax Transactions and 1 Outstanding Balances 47 Schedule of Bond and Bond Interest Transactions 48 Schedule of Future Debt Service Requirements 1 of Bancroft Improvement Bonds 49 Schedule of Future Debt Service Requirements ' of General Obligation Bonds 50 STATISTICAL SECTION: I General Governmental Expenditures By Function - Budgetary Basis - for the last ten fiscal years 51 I General Governmental Revenues By Source - Budgetary Basis - for the last ten fiscal years 52 I CITY OF TIGARD, OREGON TABLE OF CONTENTS, Continued 1 I Page STATISTICAL SECTION, Continued: Property Tax Levies and Collections - for the last ten fiscal years 53 Assessed and Estimated Actual Value of Taxable Property - for the last ten fiscal years 54 11 Property Tax Rates - All Overlapping Governments - for the last ten fiscal years 55 Special Assessment Collections - for the last ten fiscal years 56 11 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - for the last ten fiscal years 57 11 Computation of Legal Debt Margin 58 Computation of Overlapping General Obligation Debt 59 Ratio of Annual Debt Service Expenditures for 11 General Bonded Debt to Total General Expenditures - for the last ten fiscal years 60 Property Value, Construction and Bank Deposits - for the last ten fiscal years 61 Principal Taxpayers 62 Demographic Statistics 63 Miscellaneous Statistical Data 64 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS: Introductory Comments 65 Internal Accounting Control 66 Other Comments and Disclosures 68 1 I 1 I 1 I 1 1 1 1 i 1 1 INTRODUCTORY SECTION 1 1 1 1 1 1 1 1 1 1 1 II 1 D llhi9l0 , (:, II _ _ lllli��j � l November 27, 1987 CIT TIGARD i OREGON 1 Mayor Tom Brian and Members of the City Council II We are pleased to submit the Comprehensive Annual Financial Report of the City of Tigard, Oregon for the fiscal year ended June 30, 11 1987. This report was prepared by the City's Division of Finance in cooperation with the City's independent auditors, Coopers & Lybrand. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including 11 all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects, and is presented in a manner designed to fairly set forth the financial position 11 and results of operations of the City as measured by the financial activity of its various funds, and all disclosures necessary to enable the reader to gain the maximum understanding of the City's II financial affairs have been included. This report has been prepared in accordance with generally accept - ed accounting principles and follows guidelines recommended by the 11 Government Finance Officers Association of the United States and Canada. 1 ACCOUNTING SYSTEM AND BUDGETARY CONTROL The City's general governmental operations are maintained on a modified accrual basis, with revenues being recorded when II measurable and available and expenditures being recorded when the goods or services are received. The City's enterprise funds and pension trust fund are maintained on the accrual basis. II In the development, evaluation and the necessary modification of the City's accounting system, consideration has been given to II the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: . the safeguarding of assets against loss from unautho- rized use or disposition and 1/ I i II 13125 SW Hall Blvd., P.O. Box 23397, Tigard, Oregon 97223 (503) 639 -4171 the reliability of financial records for preparing financial statements and maintaining accountability for 11 assets. The concept of reasonable assurance recognizes that: 1 the cost of a control should not exceed the benefits likely to be derived and ' the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The City budgets all funds which are subject to the budget requirements of State law. The budgeting process includes citizen input through various stages of preparation, public hearings and approval of the original budget by the City Council. Additional resources not anticipated in the original budget may be added through the use of a supplemental budget. A supplemental budget requires hearings before the public, publications in newspapers and approval by the City Council. Original and supplemental budgets may be modified by the use of appropriation transfers between the cost categories. Such transfers require approval by the City Council. Budgetary control is maintained at the program level by comparison of estimated purchase amounts with adopted appropriations prior to the release of purchase orders to vendors. Purchase orders which could result in an overrun of program balances are not released 11 until additional appropriations are made available. THE REPORTING ENTITY AND ITS SERVICES This report includes all of the funds and account groups of the City as well as all organizations which meet the criteria for inclusion in the report as set forth in National Council on Governmental Accounting (NCGA) Statement No. 3, Defining the Governmental Entity. The City provides a range of services as authorized in its Charter. This includes police protection, street construction and maintenance, sanitary sewers and storm drains, library and parks, land use planning and zoning, public improvements and administrative services. I 1 ii i II ' GENERAL GOVERNMENTAL FUNCTIONS II Revenues for general governmental functions (all governmental funds) on a generally accepted accounting principles basis totaled $6,105,757 in fiscal year 1987, an increase of 9% over last year. II The increase over last year was due to substantial increases in taxes and special assessments. These increases were offset by reduced franchise fees and intergovernmental revenues. The amount II of revenues from various sources and changes from last year are as follows: Increase I Percent (Decrease) of from Revenue Source Amount Total Fiscal 1986 1 Taxes $1,807,800 29.6% $581,427 Franchise fees 745,520 12.2 (195,744) Special assessments 547,106 8.9 185,838 II Licenses and permits 650,961 10.7 102,272 Intergovernmental revenues 1,246,840 20.4 (124,964) Charges for services 382,384 6.3 6,402 I Fines and forfeitures 144,559 2.4 (23,051) Miscellaneous revenues 580,587 9.5 38,680 $6,105.757 100.0% $570,860 Taxes consist of property taxes on commercial and residential real and personal property within the City. Taxes increased as a I result of a new tax base approved by voters in May of 1986. Assessed property valuations increased $50.4 million, representing 11 an increase of 5.6% over last year. This increase is mainly attributable to continuing construction of commercial property in the City, annexations and demand for residential property. Current tax collections were 91.09% of the current tax levy, up I .77% from last year. The total collections (current and delin- quent) to the current tax levy were 96.96 %. II Franchise fees consist of amounts paid by regulated companies to operate within the City. Included are fees paid by public utilities, waste disposal and cable television companies. Fran- II chise fees decreased 21% over the prior year as a result of a mild winter and some one -time only revenue adjustments in the prior year for retroactive payments due to property annexations. 1 Intergovernmental revenues consist primarily of state and county gas taxes, shared cigarette and liquor taxes or state revenue sharing. Intergovernmental revenues decreased 9% primarily as a II result of the loss of federal revenue sharing. II 1 iii II II Expenditures for general governmental purposes on a generally accepted accounting principles basis totaled $5,989,753 in fiscal I year 1987, a decrease of 12% from last year. This change is due primarily to a decrease in capital outlay related to completion of the Civic Center in the prior year. The amount of II expenditures by major functions of the City as compared to last year is as follows: Percent Increase II of from Function Amount Total Fiscal 1985 II Community services Community development $2,450,459 40.9% $ 292,837 1,462,456 24.4 493,678 Policy and administration 111,909 1.9 (20,937) II City -wide support functions 684,784 11.4 48,879 Capital outlay 749,257 12.5 (1,457,396) Debt service 530,888 8.9 (16,266) Other (167,810) II $5,989.753 100.0% $ (827.015) II Total unreserved fund balances of the City were $389,365 at June 30, 1987, consisting of $1,314,661 in the General Fund, $1,157,372 in the Special Revenue Funds, $38,858 in the Debt Service Fund and a $2,121,526 deficit in the Special Assessments II Fund. The increase in fund balance from the prior year is primarily a result of a decrease in capital outlay from the prior year and an increase in property tax revenues. The deficit in I the Special Assessments Fund arose primarily because of the application of generally accepted accounting principles to finan- cial reporting for the fund. Revenues are recognized only to the II extent that individual installments are considered measurable and available. The deficit is expected to be reduced and eliminated as deferred special assessment installments, which are subject to lien, become measurable and available and are collected. I ENTERPRISE OPERATIONS I The Enterprise Funds are used to finance and account for the acquisition, operation and maintenance of City sewer and storm drainage facilities. The operations of these funds are accounted for in such a manner as to show a profit or loss similar to 1 comparable private enterprises. Sewer Fund I Operating revenues amounting to $570,361 were derived from service charges during fiscal year 1987. Operating expenses totaled II $600,725. The net loss was $1,739 after nonoperating interest revenues were considered for the fiscal year. II iv II 11 ' Storm Drainage Fund I This fund was established during fiscal 1983 to separate sewer service activities from storm drainage activities. Operating revenues amounting to $155,741 were derived from storm drainage service charges. Net loss, including depreciation of $109,164, II was $191,757. RETIREMENT PROGRAMS I The City provides a retirement plan for each employee group. Non - police personnel including both management and nonmanagement are I covered by an ICMA money purchase plan. Police personnel have a defined benefit and defined contribution pension plan through the Principal Financial Group previously known as Bankers Life Insurance Company. In addition, all employees have the option II to contribute to an ICMA deferred compensation program. The police pension plan is accounted for in the pension trust fund. The deferred compensation plan is accounted for in an agency fund. I POOLED CASH AND INVESTMENTS II For the purpose of maximizing yields on short -term investments, temporary excess cash of all funds is pooled. Results of invest- ment activity for the fiscal year are shown below in comparison with the previous year: II Investment Income 1987 1986 I General Fund $108,159 $160,131 Special Revenue Funds 66,208 52,119 Capital Projects Fund 63,674 Special Assessments Fund 17,826 34,476 I Enterprise Funds 41,432 20,040 Pension Trust Fund 149,983 137,242 I $383,608 $467,682 Investments at the end of fiscal year 1987 totaled $6,245,185 at II cost. City investments are approved by the State Treasurer in accordance with the Oregon Revised Statutes. Automatic deposits of shared revenues from other governmental agencies are trans- mitted directly to the state administered local government invest- ' ment pool. The interest earnings of investments are allocated to participat- ' ing funds on the basis of the monthly average of their equities in the pooled accounts. 11 I/ v II 1 BONDED INDEBTEDNESS The City's total outstanding bonded debt at June 30, 1987 was $5,144,000 of which $2,479,000 were Bancroft improvement bonds. During 1987, the City issued $2,215,000 in General Obligation bonds to advance refund the callable portion of the 1984 series ' building bonds used to finance the Civic Center construction project. Advance refunding these bonds reduced the City's debt service payments over the next 17 years by approximately $220,000. The State of Oregon mandates a general obligation debt limit of 3 percent of true cash value of taxable property within the City boundaries. This limit totaled $28,702,085 at June 30, 1987. 11 The City's net debt subject to this limitation was $2,665,000, leaving the amount available for future indebtedness at $26,037,085. The City's bonds have carried the same ratings for the past several years. These ratings are as follows: ' Moody's Investment Service General Obligation bonds A ' INDEPENDENT AUDIT ' Oregon State law requires every municipal corporation to submit an annual financial report to the Secretary of State; to have its combined financial statements examined by an independent certified public accountant in accordance with generally accepted ' auditing standards and Minimum Standards for Audits of Oregon Municipal Corporations as prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy; and to have an independent auditor express an opinion upon the financial position and results of operation as reported by the municipal corporation for the period under audit. The City is in full compliance with the aforementioned, and the auditor's opinion has been included in this report. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE For the last four consecutive years, the City has received the Certificate of Achievement for Excellence in Financial Reporting ' from the Government Finance Officers Association of the United States and Canada, which reflects the conforming accounting system and comprehensive reporting practices of the City. In order to be awarded a Certificate of Achievement for Excellence, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, that conforms to program standards. Such reports must satisfy both generally ' accepted accounting principles and applicable legal requirements. In our opinion, this report conforms to these standards. I vi II I OTHER SIGNIFICANT ACTIVITIES /EVENTS II In March of 1987, voters in an unincorporated area north of Tigard known as South Metzger elected to annex to the City. As a result of this annexation, the City's population grew by II approximately 1,200 residents and the City's assessed value increased by over $150,000,000. Tigard remains the twelfth largest City in the state of Oregon, however, the assessed value per capita ratio surpasses that of all cities in the state. The II City also maintains one of the lowest City tax rates in the state (currently at $2/1000). These factors, among others, make the City of Tigard one of the fastest growing and among the most II livable communities in the state. With the completion of the Tigard Civic Center in 1986, the City will now turn its attention to other capital infrastructure II improvements including streets, parks expansion, storm drains and sewers, and downtown development. The City is currently evaluating the community's needs in these areas and exploring a I variety of financing options. Tigard voters in 1986 approved a new tax base for City operations. II The City has developed a five year plan to ensure that the tax base meets the City's needs for at least five years. The five year plan is a flexible financial tool and is updated as events occur or assumptions change. II The overall financial condition of the City of Tigard as of June 30, 1987 is excellent given the current economic climate. The City continues to provide services to its citizens well within its resources. In order to maintain quality services, the City's management is continually searching for ways to increase resources and implement cost reduction programs. Both areas are I under constant review, and all areas of opportunity are being thoroughly explored so that basic City services are not adversely affected by economic factors. II The future of the City of Tigard's economic vitality appears to be very good. Several large commercial construction projects are II in process including several retail centers along Highway 99 and Lincoln Center in the newly annexed South Metzger area. The Lincoln Center project includes a twelve story office building which will be the tallest building in Washington County. II II II II vii I ACKNOWLEDGMENTS I Finally, we would like to express my sincere gratitude to the personnel of the Finance Division who assisted and contributed to the preparation of this report. Appreciation is also extended to the Mayor, City Council and many City department managers, whose continuing support is vital to the financial health of the City of Tigard, Oregon. Respectfully submitted, R. Wayne Lowj Finance Director PICL ' Robert . Jean City Administrator 11 1 viii II II CITY OF TIGARD, OREGON II II MAYOR AND COUNCIL MEMBERS AS OF JUNE 30, 1987 I Name Term Expires Mayor Tom Brian December 31, 1988 I 7630 S.W. Fir Street Tigard, Oregon 97223 II Councilman Gerald R. Edwards (President) December 31, 1988 10390 S.W. Meadow Tigard, Oregon 97223 I Councilwoman Carolyn Eadon December 31, 1990 11825 S.W. Wildwood Court Tigard, Oregon 97224 II Councilwoman Valerie Johnson December 31, 1988 12265 S.W. Walnut Tigard, Oregon 97223 II Councilman John Schwartz December 31, 1990 15900 S.W. 76th II Tigard Oregon 97224 II Robert W. Jean, City Administrator II R. Wayne Lowry, Director of Finance II I LEGAL COUNSEL O'Donnell & Ramis II 1727 N. W. Hoyt Portland, Oregon 97209 I II ix 1 — r — SE IN r MN MN - - MO MN ■E E MO - - NM CITY BOARDS t MUNICI PAI CWNCII COMITTEES COURT '�"' +��1''IS A 1 nn 0 CITIZEN INVOLVEMENT t ELECTIONS o POLICY i CITY OF TI�A RY 0 JUSTICE o POLICY t MUNICIPAL CODES REVIEW ADVICE SERVICES CITY o COIIIUNITY t INTERGOVERNMENTAL RELATIONS OREGON ATTORNEY ORGANIZATION BY FUNCTION o LEGAL SERVICES CITY ADMINISTRATION o MANAGEMENT SYSTEMS t ADMINISTRATION o PRODUCTIVITY IMPROVEMENTS t TEAM - BUILDING o CCYMUNITY t INTERGOVERNMENTAL RELATIONS SUPPORT o BUDGET, FINANCE AND LONG -RANGE PLANNING o PROGRAM EVALUATION, WORK PLANS t REPORTING COI N MU ITT POLICE LIBRARY COMMUNITY t DEVELOPMENT DEPARTMANT DEPARTMENT ADMINISTRATIVE DEPARTMENT SERVICES o DEPT. MGM. B ADMIN. 0 DEPARTMENT MANAGEMENT t ADMIN. o D EPARTMENT MANAGEMENT A ADMIN. 0 DEPARTMENT MANAGEMENT 1 ADMINISTRATION o ECONOMIC DEV., CITY CENTER; TVEDC, t I -S ASSN. o PUBLIC SAFETY COORDINATION .0 COLLECTION DEVELOPMENT 0 PLITLIC INFORMATION, N/H A COMMUNITY INVOLVEMENT o TRANSPORIANTION PLANNING i TRAFFIC ENGINEERING o OPERATIONS I INTERNAL AFFAIRS o VOLUNTEERS 0 VOLUNTEERISM, BOARD i COMMITTEE RELATIONS 0 LID /CUP PROJECT MEAT. L ENGINEERING CONTRACTS 0 CCIMINIIY CRIME PREVENTION O WCCLS COORDINATION O PERSONNEL 1 LABOR RELATIONS 0 SOLID WASTE I FRANCHISES ADMINISTRATION 0 SCHOOL RESOURCE OFFICERS 0 LITERACY PROGRAM COORDINATION 0 INSURANCE CLAIMS t RISK MANAGEMENT I I PATROL INVEST- SERVICES SUPPORT FINANCE DEVELOPMENT PUBLIC DIVISION !CATIONS DIVISION SERVICES DIVISION SERVICES WORKS DIVISION DIVISION DIVISION OPERATIO 0 CRIMINAL 0 POLICE DISPATCH o COUNCIL MINUTES 0 FINANCIAL MGMT. 0 DIVISION MANAGEMENT 0 DIVISION MANAGEMENT INVESII- 0 9 -1 -1 COORDINATION o LEGALS i ANALYSIS o COMPUTER SYSTEMS / GIS o FLEET MANAGEMENT 1 EWIPMENT CATIONS 0 CLERICAL i RECORDS o CODIFICATION 0 REVENUES I ENFORCEMENT o BUSINESS TAX i CODES ENFORCEMENT REPLACEMENT PROGRAM 0 EVIDENCE 0 ELECTIONS 0 LID /CIP FINANCE 0 BUILDINGS MAINTENANCE 0 R.O.W. VACAT o FRANCHISES AUDITS o INVENTORY I SUPPLY STORES o GENERAL GOVERNMENT DAY SWING LIVENING REFERENCE READERS SUPPORT RECORDS/ OFi ICE ACCWNTIN BUILDING PLANNING ENGINEERING SHOPS i WASTE STREETS PARKS SHIFT SHIFT RESEARCH SERVICES SERVICES COURT SERVICES SECTION SECTION SECTION SECTION SERVICES WATER SECTION SECTION SECTION o PATROL SERVICES 0 WILI / COMPUTER 0 CIRCOUTION 0 TECH- o CITY RECORDS 0 OFFICE MOO, 0 A/R i A/P 0 BLDG. INSP, o COMP PLAN 0 DIV. REVIEW 0 VEHICLE t o SANITARY o STREETS o PARKS I GROUNDS 0 CRIME ANALYSIS SYSTEMS 0 CHILDREN'S SERVICES o CENTRAL FILES 0 WORD PROC o DATA PROC o CODES ENFORC o ANNEX SERV o IMPRY PERMIT o EOUIPMNI SEWERS MAIN, MAINTENANCE 0 TRAFFIC ENFORCEMENT 0 REFERENCE I PROGRAMS o REPAIR o RUNIC C1 o PHONE RECEP 0 CASH MGM! 0 SEWER INSP o SPEC PROJ 0 SURVEY 1 0 SUPPT SERV 0 STORM o STREET a PARKS PROJECTS o NARCOTICS TEAM RESEARCH A MAINZ o CASHIER o COPY CHIN o PAYROLL o DEVIL INSP a PARKS MAPS DRAINAGE SWEEPING o K -9 TEAM 0 PIIRI IC INFO o NAIL 0 UTILITY PLANNING o ST LIGHTS o SIGNS BILLINGS o CURRENT I TRAIT SIGNALS a POLICE RL SI PVIS o PUNLHASING FLANN i REV I 1 1 Certificate of 1 Achievement for Excellence ' Financial in Reporting Presented to City of Tigard Oregon For its Comprehensive Annual Financial Report 1 for the Fiscal Year Ended June 30, 1986 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to governmental units and public employee retirement I systems whose comprehensive annual financial reports (CAFR's) are judged to substantially conform to program standards. 1 I � ��' OFTires'tp 4 54 - 9 UNITED STATES N W AND N President f CANADA o i6 CORPORATION � STEAL �s QQGGG CMICA60 l j I Y117 Executive Director I xi I z 0 H H U W a 0 z H W ME M — — — I certified public accountants Coopers &Lybrand � I Honorable Mayor and Council Members ' City of Tigard Tigard, Oregon ' We have examined the general purpose financial state- ments of the City of Tigard, Oregon as of and for the year ended June 30, 1987, as listed in the table of contents. Our examina- tion was made in accordance with generally accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corporations and, accordingly, included such tests of the account- ' ing records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the general purpose financial statements ' referred to above present fairly the financial position of the City of Tigard, Oregon as of June 30, 1987, and the results of its operations and the changes in financial position of its Enterprise ' Funds and Pension Trust Fund for the year then ended, in conform- ity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. ' Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and individual account ' group financial statements and other financial schedules listed as supplementary data in the table of contents are presented for purposes of additional analysis and are not a required part of the ' general purpose financial statements of the City of Tigard, Oregon. Such information has been subjected to the auditing pro- cedures applied in the examination of the general purpose finan- cial statements and, in our opinion, is fairly stated in all l material respects in relation to the general purpose financial statements taken as a whole. ' The other data included in this report, designated as the statistical section in the table of contents, has not been audited by us and, accordingly, we express no opinion on such ' data. COOPERS & LYBRAND 1 By c Jahr^ I .11.2:6VverNaen John L. Dethman, a partner ' Portland, Oregon September 11, 1987 1 ' (This page intentionally left blank.) 1 I 1 CITY OF TIGARD, OREGON COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1987 1 Governmental Special Debt ASSETS General Revenue Service Assets: Cash and investments $1,091,865 $1,878,040 $35,284 Accounts receivable 9,796 Property taxes receivable 178,761 29,792 Contract receivable 57,769 Assessment liens receivable Unassessed projects in process Accrued interest on delinquent assessments Due from other funds 683,034 37,840 Inventory of gasoline 1,507 Fixed assets, net Amount available for bonded debt service Amount to be provided for retirement of general long -term debt Total assets $2.022.732 $1,915,880 $65.076 LIABILITIES AND FUND EQUITY ' Liabilities: Accounts payable and accrued liabilities $ 349,852 $ 52,320 Deposits 134,214 Due to other funds 13,000 706,188 Deferred revenues: Account receivable 1,004 Property taxes 152,232 $26,218 Contract receivable 57,769 Assessment liens receivable Unassessed projects in process Accrued interest on delinquent assessments Capital lease obligation Accrued vacation payable Deferred compensation payable Amount due to Special Assessments Fund Bonds payable Total liabilities 708,071 758,508 26,218 Fund equity: Contributed capital Investment in general fixed assets Retained earnings Fund balances (deficit): Reserved for employee retirement benefits Unreserved 1,314,661 1,157,372 38,858 Total fund equity 1,314,661 1,157,372 38,858 Total liabilities and fund equity $2,022,732 $1,915,88Q $45,076 ' The accompanying notes are an integral part of the general purpose financial statements. 2 II II II I Fiduciary Fund Types Propretary Fund Types Account Groups Special Fund Type Trust General General Long- Total I Assessment Enterprise and Agency Fixed Assets Term Debt (Memorandum Only) $ 315,181 $ 807,979 $2,244,004 $ 6,372,353 223,167 232,963 ' 8,311 216,864 57,769 1,565,038 1,565,038 280,010 280,010 I 78,028 78,028 720,874 1,507 7,087,410 $5,811,596 12,899,006 I s 38,858 38,858 3,101,747 3,101,747 $2,2 . 38.257 $p,126.867 $2,244.004 $5.811,596 $3,149.605 $25.565.017 II Is 6,907 $ 228,708 $ 637,787 134,214 1,686 720,874 1,004 ' 178,450 57,769 1,515,838 1,515,838 280,010 280,010 I 78,028 78,028 $ 224,116 224,116 9,257 126,539 135,796 $ 463,909 463,909 II 124,950 124,950 2,479,000 2,665,000 5,144,000 4,359,783 239,651 463,909 3,140,605 9,696,745 I 7,255,811 7,255,811 $5,811,596 5,811,596 631,405 631,405 ' (2 121 526) 1,780,095 1,780,095 ,, 389,365 (2,121,526) 7,887,216 1,780,095 5,811,596 15,868,272 I $,2,23x,2 5 7 $, 1 26, 8 7 $ 244,Q04 $5,811,596 $x.140,605 $25,565,017 1 I II I CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES II IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 1987 II I Special Debt Total Special (Memorandum General Revenue Service Assessments Only) I Revenues: Taxes $1,648,246 $ 159,554 $1,807,800 Franchise fees 745,520 745,520 Special assessments $ 547,106 547,106 I Licenses and permits 642,222 $ 8,739 650,961 Intergovernmental revenues 510,284 736,556 1,246,840 Charges for services 23,580 358,804 382,384 Fines and forfeitures 144,559 144,559 Miscellaneous revenues, II primarily interest 272,882 66,208 2,609 238,888 580,587 Total revenues 3,987,293 1,170,307 162,163 785,994 6,105,757 II Expenditures: Current: Community services 2,367,972 82,487 2,450,459 Community development 848,023 614,433 1,462,456 Policy and administration 87,870 24,039 111,909 City -wide support functions 592,863 91,921 684,784 Capital projects 62,548 268,347 418,362 749,257 Debt service: Principal 70,000 70,000 I Interest 217,937 242,951 460,888 Total expenditures 3,959,276 1,081,227 287,937 661,313 5,989,753 I Excess of revenues over (under) expenditures 28,017 89,080 (125,774) 124,681 116,004 Other financing sources (uses): II Proceeds of refunding bonds 2,127,000 2,127,000 Payment to refund bonds escrow agent (2,087,501) (2,087,501) Proceeds from capital lease 250,574 250,574 I Total other financing sources 250,574 39,499 290,073 Excess of revenues and II other sources (uses) over (under) expend- itures 278,591 89,080 (86,275) 124,681 406,077 I Fund balances (deficit) - beginning of year 1,036,070 1,068,292 125,133 (2,246,207) (16,712) Fund balances (deficit) - end of year $1.314,661 $1.157.372 $ 38.858 $(2.121,526) $ 389.365 II II The accompanying notes are an integral part of the general purpose financial statements. 3 II CITY OF TIGARD, OREGON II COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET (NON-GAAP BASIS) AND ACTUAL - ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 1987 II General Fund Special Revenue Funds Variance Variance II Favorable Favorable (Unfavor- (Unfavor- Budget Actual able) Budget Actual able) Revenues: II Taxes $1,607,500 $1,648,246 $ 40,746 Franchise fees 790,000 745,520 (44,480) Special assessments Licenses and permits 554,000 642,222 88,222 $ 8,000 $ 8,739 $ 739 II Intergovernmental revenues 495,000 510,284 15,284 720,149 736,556 16,407 Charges for services 36,000 23,580 (12,420) 380,561 358,804 (21,757) Fines and forfeitures 155,000 144,559 (10,441) Miscellaneous revenues, primarily I interest 155,500 272,882 117,382 44,518 66,208 21,690 Total revenues 3,793,000 3,987,293 194,293 1,153,228 1,170,307 17,079 Expenditures: II Current: Community services 2,413,911 2,367,972 45,939 94,000 82,487 11,513 Community development 925,445 848,023 77,422 617,673 614,433 3,240 Policy and administration 97,000 87,870 9,130 25,000 24,039 961 II City-wide support functions 355,000 342,289 12,711 107,500 91,921 15,579 Contingency 1,072,073 1,072,073 53,100 53,100 Capital projects 98,000 62,548 35,452 1,200,327 268,347 931,980 Debt service: Principal II Interest Total expenditures 4,961,429 3,708,702 1,252,727 2,097,600 1,081,227 1,016,373 Excess of revenues over (under) II expenditures (1,168,429) 278,591 1,447,020 (944,372) 89,080 1,033,452 Other financing sources (uses): Proceeds of refunding bonds I Payment to refunded bonds escrow agent Total other financing sources (uses) I Excess of revenues and other sources over (under) expenditures and other uses (1,168,429) 278,591 1,447,020 (944,372) 89,080 1,033,452 I Fund balances - budgetary basis, beginning of year 1,028,304 1,036,070 7,766 1,068,292 1,068,292 Fund balances - budgetary basis, II end of year $(140.125) 1,314,661 $1,454,7$6 $..1ga 1,157,372 $1,033,452 Adjustments from budgetary basis to generally accepted accounting II principles: Cumulative effect of differences between budgetary basis and gener- ally accepted accounting principles basis of reporting beginning fund II balance Bond principal payments budgeted as expenditures Fund balances (deficit) - generally II accepted accounting principles basis, end of year $1,314,661 $ },157,372 The accompanying notes are an integral part II of the general purpose financial statements. 4 II II II Debt Service Fund Special Assessments Fund Total (Memorandum Only) I Variance Variance Variance Favorable Favorable Favorable Unfavor- (Unfavor- (Unfavor- Budget Actual able) Budget Actual able) Budget Actual able) II $295,000 $ 159,554 $ (135,446) $ 1,902,500 $1,807,800 $ (94,700) 790,000 745,520 (44,480) $ 520,951 $ 547,106 $ 26,155 520,951 547,106 26,155 II 562,000 650,961 88,961 1,215,149 1,246,840 31,691 416,561 382,384 (34,177) 155,000 144,559 (10,441) II 1,000 2,609 1,609 238,888 238,888 201,018 580,587 379,569 296 162,163 (133,837) 520,951 785,994 265,043 5,763,179 6,105 342,578 II 2,507,911 2,450,459 57,452 1,543,118 1,462,456 80,662 122,000 111,909 10,091 462,500 434,210 28,290 1,125,173 1,125,173 4,000,049 418,362 3,581,687 5,298,376 749,257 4,549,119 45,000 70,000 (25,000) 278,000 278,000 323,000 348,000 (25,000) 251,000 217,937 33,063 242,951 242,951 493,951 460,888 33,063 296,000 287,937 8,063 4,521,000 939,313 3,581,687 11,876,029 6,017,179 5,858,850 I - (125,774) (125,774) (4 (153,319) 3,846,730 (6,112,850) 88,578 6,201,428 U 2,127,000 2,127,000 4,000,049 (4,000,049) 4,000,049 2,127,000 (1,873,049) (2,087,501) (2,087,501) (2,087,501) (2,087,501) II 39,499 39,499 4,000,049 (4,000,049) 4,000,049 39,499 (3,960,550) II (86,275) (86,275) (153,319) (153,319) (2,112,801) 128,077 2,240,878 125,133 125,133 1,035,098 510,793 (524,305) 3,256,827 2,740,288 (516,539) II 425,133 38,858 $ (8) $1.21A.22k 357,474 $(4 •) $ 1.144.026 2,868,365 $1,7 II II (2,757,000) (2,757,000) 278,000 278,000 II $ 38.858 $ 0,121, 526) $._,389,365 I II II II CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS /FUND BALANCE - ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUND II for the fiscal year ended June 30, 1987 II II Proprietary Fiduciary Total Fund Type Fund Type (Memorandum Enterprise Pension Trust Only) II Operating revenues: Service Pension contributions $726,102 $ ibutions $ 153,961 153,961 11 Total operating revenues 726,102 153,961 880,063 Operating expenses: Salaries and wages 388,361 388,361 II Contracted services 62,378 62,378 General and administrative and other 278,787 278,787 Depreciation 231,504 231,504 Benefit payments and withdrawals 152,762 152,762 Contract charges 804 804 f Total operating expenses 961,030 153,566 1,114,596 Operating income (loss) (234,928) 395 (234,533) I Nonoperating revenue - Interest 41,432 149,983 191,415 Net income (loss) (193,496) 150,378 (43,118) 11 Add: Depreciation on fixed assets donated or acquired from capital contri- butions that reduces contributed capital 195,764 195,764 11 Increase in retained earnings /fund balance 2,268 150,378 152,646 II Retained earnings /fund balance - beginning of year 629,137 1,629,717 2,258,854 Retained earnings /fund balance - end of year $A31,405 $ ;.780.095 $x.411,500 1 1 11 11 r The accompanying notes are an integral part of the general purpose financial statements. 11 5 1 CITY OF TIGARD, OREGON II COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUND for the fiscal year ended June 30, 1987 II II Proprietary Fiduciary Total II Fund Type Fund Type (Memorandum Enterprise Pension Trust Only) Working capital provided (used): II In operations: Net income (loss) $(193,496) $150,378 $(43,118) Charges to operations not requiring outlay of working capital in the current period - depreciation 231,504 231,504 II Working capital provided from operations 38,008 150,378 188,386 II Capital contributions, net of donated fixed assets of $533,731 149,105 149,105 Fixed asset additions (5,999) (5,999) II Increase in working capital $181,114 $150.378 $331.492 components Changes in onents which increased g P (decreased) working capital: Cash and investments $ 32,739 $150,378 $183,117 Accounts receivable 127,278 127,278 Property taxes receivable (392) (392) Accounts payable and accrued liabilities 1,544 1,544 Customer deposits 17,767 17,767 Accrued vacation (6,694) (6,694) Due to other funds 8,872 8,872 II Increase in working capital 481,114 $,50,378 $331,492 11 L 11 1 11 I The accompanying notes are an integral part of the general purpose financial statements. 6 i I r I I I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS I 1 I I I I I 1 I 1 1 I I 11 CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued 1. Summary of Significant Accounting Policies, Continued: Budget A budget is prepared for each fund except for the Fiduciary Fund Types, in accordance with the modified accrual basis of accounting for governmental funds with certain modifications as explained in ' Note 3, the accrual basis of accounting for Enterprise Funds, and in accordance with the legal requirements set forth in the Oregon Local Budget Law. Appropriations are made at the major program 11 level for each fund. Appropriations may not be legally overex- pended. Appropriations lapse at the end of each fiscal year. Budget amounts include original approved amounts and all sub - sequent appropriations transfers approved by the City Council. After budget approval, the City Council may approve supplemental appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. During the fiscal year ended June 30, 1987, several appropriations transfers were made as well as one supplemental budget appropria- tions. The budget for the funds includes capital outlay expenditures in each program for capital outlay applicable to that program. Capital outlay expenditures benefiting the City and not an identifiable program are reported separately. 2. Organization and Operation: The City of Tigard, under its Charter of 1962, is governed by an elected mayor and four councilmembers who comprise the City Council. The City's financial operations are accounted for in the following funds and account groups: Governmental Fund Types General Fund: This fund accounts for the City's general operations. It is used to account for all transactions not specifically related to the City's other funds. Special Revenue Funds: I/ Federal Revenue Sharing Fund: This fund accounts for Federal Revenue Sharing entitlements. ' State Tax Street Fund: This fund accounts for revenues received from state gasoline taxes which are to be expended as specified in the Constitution of the State of Oregon, Article IX, Section 3. 12 I I CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued 2. Organization and Operation, Continued: Governmental Fund Types, Continued Special Revenue Funds, Continued: Streets SDC Fund: This fund accounts for system develop- ment charges to be used for major repair and improvement to extracapacity street facilities. Parks SDC Fund: This fund accounts for system develop- ment charges for major improvements to recreational facilities within the City. County Road Levy Fund: This fund accounts for a spe- cial, one -time property tax levy from Washington County for the maintenance and repair of roads. County Gas Fund: This fund accounts for road tax monies received from Washington County for the maintenance and ' operation of roads. Debt Service Fund: This fund accounts for payment of general obligation bond principal and interest. The principal source I of revenue is from property taxes. Special Assessments Fund: This fund accounts for construc- tion and financing of specific street and sanitary sewer and storm drainage projects which benefit property owners. The fund's primary financing sources are assessments against owners of benefited property and contributions from other 1 funds for their share of costs. Enterprise Funds Sewer Fund: This fund accounts for the City's sewer utility operations. Storm Drainage Fund: This fund accounts for the City's storm drainage operations. Fiduciary Fund Types ■ Deferred Compensation Fund: This fund accounts for monies withheld from employees under deferred compensation plans and the earnings on the investment of those funds (Note 11). 1 13 I CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued I 2. Organization and Operation, Continued: Fiduciary Fund Types, Continued Pension Trust Fund: This fund accounts for the police em- ployees' pension plans (Note 11). Account Groups General Fixed Assets: This account group accounts for the I/ City's investment in fixed assets, with the exception of those assets held by the Enterprise Funds. General Long -Term Debt: This account group accounts for long -term indebtedness not recorded in the Enterprise Funds and Special Assessments Fund. 3. Reconciliation of Generally Accepted Accounting Principles Basis to Budgetary Basis: The budget for the General Fund and the Special Assessments Fund of the City are prepared differently from generally accepted accounting principles. Therefore, the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (Non -GAAP Basis) and Actual - All Governmental Fund Types is pre - sented on the budgetary basis and is adjusted to the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types presented on the generally accepted accounting principles basis. The following is a reconciliation of the differences between the budgetary basis and generally accepted accounting principles basis for the excess of revenues and other sources over (under) expenditures and other uses for the aforementioned general purpose financial statements: I I I/ I ' 14 1 II CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued II II 3. Reconciliation of Generally Accepted Accounting Principles Basis to Budgetary Basis, Continued: Special II General Assessments Fund Fund Excess of revenues and other sources II over expenditures - generally accepted accounting principles basis (page 3) $278,591 $124,681 I/ Expenditures: Bond principal payments budgeted as expenditures (278,000) I Expenditure for asset additions under a capital lease not recognized as an expenditure on a budgetary basis 250,574 11 250,574 (278,000) Other financing sources (uses): II Other financing source from capital lease not recognized on a budgetary basis (250,574) II Excess of revenues and other sources over (under) expenditures and other uses $278,591 $(153,319) II 4. Cash and Investments: The City maintains a cash and investment pool that is available II for use by all funds, except the Deferred Compensation Fund and Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments ". II The investments of the Deferred Compensation Fund and Pension Trust Fund are held separately from those of other City funds. Cash and investments are comprised of the following at June 30, II 1987: Cash on hand $ 650 Cash held by Department of Finance, Washington County 19,959 il Deposits with financial institutions 106,559 Investments 6,245,185 II $6.372,353 II II 15 CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued I 4. Cash and Investments, Continued: Deposits Deposits with financial institutions include bank demand deposits and time deposit accounts. The total bank balance is $181,933 (book balance is $106,559). Of these deposits, $100,000 was covered by federal depository insurance, $81,933 was collateral- ized with securities held by financial institutions in the City's name. Oregon Revised Statutes require the depository institution 1/ to maintain on deposit with a collateral pool manager securities having a value not less than 25% of the outstanding certificates of participation issued by the pool manager. No portion of the City's deposits with financial institutions was uncollateralized at June 30, 1987. 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 11 agreements, bankers' acceptances, and the state treasurer's investment pool. ' The City's investments are categorized below to give an indication of the level of risk assumed by the City at June 30, 1987. Category 1 includes investments that are insured or for which the securities are held by the City or its agent in the City's name. 1 Category 2 includes uninsured investments for which the securities are held in the City's name by the trust department of the financial institution selling the security to the City. ' Category 3 includes uninsured investments for which the securities are held by the financial institution selling the security to the City or by its trust department, but not in the City's name. There were no category 1 and 2 investments at June 30, 1987. I I I I I 16 II II CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued II 4. Cash and Investments, Continued: 1 Investments, Continued II Category Carrying Market 1 2 3 Amount Value Held by custodian under I deferred compensa- tion plan $ 463,909 $ 463,909 $ 463,909 Held by custodian under 1 pension plan 1,780,095 1,780,095 1,780,095 $ - $ - $2.244,004 2,244,004 2,244,004 I/ State treasurer's investment pool 4,001,181 4,001,181 I Total invest- ments $6.245.185 $6.245.185 1 5. Contract Receivable: This represents the balance due to the City from the Unified I Sewerage Agency of Washington County resulting from the sale of certain sewage treatment and collection facilities to the Agency in 1970. This contract is recorded in the General Fund because at II the time of sale of the facilities, the City's sewer operations were accounted for in the General Fund. Amounts due at June 30, 1987 comprise: 1 Total receivable $64,999 Less unearned interest 7,230 $57,769 The contract requires annual payments of $14,442 plus 5% interest on the unpaid balance to July 1, 1991. II 6. Assessment Liens Receivable: II Assessment liens receivable represent the uncollected amounts levied against benefited property for the cost of local improve- ments. Because the assessments are liens against the benefited 11 property, an allowance for uncollectible amounts is not deemed necessary. Substantially all assessments are payable over a period of ten to twenty years. Assessments bear 7% to 10.8% II interest. I 17 II 11 CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued II II 7. Interfund Receivables and Payables: Interfund receivables and payables at June 30, 1987 are: II Special Enter - General Revenue prise Fund Funds Funds Total II Due from other funds: General $ 13,000 $ 13,000 Streets SDC 22,829 22,829 I State Tax Street $409,145 409,145 Parks SDC 145,531 145,531 County Road Levy 65,515 2,011 67,526 II County Gas Tax 61,157 1,686 61,157 Sewer 1,686 I $683,034 $ 37,840 $720,874 Due to other funds: General $681,348 $1,686 $683,034 State Tax Street $ 13,000 13,000 II Streets SDC 22,829 22,829 County Gas Tax 2,011 2,011 II $ 13,000 $706,188 $1,686 $720,874 II 8. Fixed Assets: Fixed assets and related changes therein are as follows: I ENTERPRISE FUNDS Balance Balance 11 June 30, June 30, 1986 Additions 1987 Land $ 2,484 $ 2,484 II Building 53,540 53,540 Sewer system 4,689,278 $366,972 5,056,250 Storm drainage system 4,960,141 166,759 5,126,900 II Equipment 122,088 5,999 128,087 Autos and trucks 28,710 28,710 9,856,241 539,730 10,395,971 II Less accumulated depreciation 3,077,057 231,504 3,308,561 I $6,779,184 $308,226 $ 7,087,410 I 18 I ' CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued 8. Fixed Assets, Continued: GENERAL FIXED ASSETS ACCOUNT GROUP Balance Balance 1 June 30, June 30, 1986 Additions 1987 Land $ 913,481 $ 17,600 $ 931,081 Buildings 2,823,235 62,548 2,885,783 Equipment 759,768 101,343 861,111 ' Autos and trucks 178,595 142,227 320,822 Office equipment 195,850 250,574 446,424 Library books 303,283 63,092 366,375 I $5.174.212 $637.384 $5.811.596 I I I I r I ' 19 I I/ CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS I/ I 1. Summary of Significant Accounting Policies: Governmental Entities Included in the Combined Financial Statements 1 All significant activities and organizations with which the City exercises oversight responsibility have been included in the I/ City's combined financial statements for the year ended June 30, 1987. The following criteria regarding manifestation of oversight were considered by the City in its evaluation of City organizations and activities: • Financial interdependency - whether the City receives financial support or provides financial benefit to the organization; is responsible for or has directly or indirectly guaranteed the organization's debts. • Authoritative appointment of governing authority - whether the City Council appoints the organization's governing authority and maintains a significant continuing relationship with the governing authority pertaining to the public functions of the organization. There are many governmental agencies including Washington County I and certain school districts and various service districts which provide services within the City. These agencies have indepen- dently elected governing boards and the City does not manifest any oversight responsibility. Therefore, financial information for these agencies is not included in the accompanying combined finan- cial statements. 11 Bases of Accounting The Governmental Fund Types are maintained on the modified accrual basis of accounting. Under the modified accrual basis of account- ing, revenues are recorded in the accounting period in which they become measurable and available and expenditures are recorded at the time liabilities are incurred, except for: Interfund transactions for services which are recorded on the accrual basis. I Interest on general obligation bonds which is recorded on its due date. Earned but unpaid vacations which are recorded as expenditures to the extent they are expected to be liq- uidated with expendable available financial resources. 1 7 I I/ CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued I/ I 1. Summary of Significant Accounting Policies, Continued: Bases of Accounting, Continued Revenues which were measurable and available at June 30, 1987 under the modified accrual basis of accounting were as follows: Federal and state grants (to the extent that revenues are recorded as eligible expenditures are incurred). State, county and local shared revenues for cigarette 11 tax, liquor tax and other. Property tax revenues and assessment liens principal I installments which are collected within sixty days following year end. The Enterprise Funds and Pension Trust Fund are accounted for utilizing the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded at the time they are earned and expenses are recorded at the time liabilities are 11 incurred. The bases of accounting described above are in accordance with generally accepted accounting principles. Total (Memorandum Only) Columns The Total (Memorandum Only) columns on the combined financial statements represent an aggregate of the columnar statements by fund type and account group; they do not represent consolidated financial information. Investments Investments, included in cash and investments, are carried at cost which approximates market. Receivables Receivables for federal and state grants, and state, county and local shared revenues, included in accounts receivable, are recorded as revenue in the governmental funds as earned. Receivables of the Enterprise Funds are recorded as revenue as earned, including services earned but not billed. 1 8 II II CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued II 11 1. Summary of Significant Accounting Policies, Continued: Receivables, Continued II Property taxes receivable for the Governmental Fund Types which have been collected within sixty days subsequent to year end are considered measurable and available and are recognized as revenues. II All other property taxes are offset by deferred property tax revenues and, accordingly, have not been recorded as revenue. Property taxes become a lien on January 1 for personal property I and on July 1 for real property. All taxes are levied on July 1. Collection dates are November 15, February 15, and May 15. Dis- counts are allowed if the amount due is received by November 15. 1/ Taxes unpaid and outstanding on May 16 are considered delinquent. Assessments are recognized as receivables at the time property owners are assessed for property improvements. Assessments I/ receivable expected to be collected within sixty days after year end are considered measurable and available and are recognized as revenues. All other assessments receivable are offset by a II deferred revenue account and, accordingly, have not been recorded as revenue. Unassessed projects in process in the Special Assessments Fund I represent costs incurred for future assessments not formally levied against the benefited property owners. Those receivables are recognized when the costs are incurred and entirely offset by I a deferred revenue account and, accordingly, have not be recorded as revenue. Accrued interest on delinquent assessments are recorded as a II receivable and entirely offset by a deferred revenue account, and accordingly, have not be recorded as revenue. II The contract receivable due from Unified Sewerage Agency in the General Fund is offset by a deferred revenue account. Revenue is recognized when payments on the receivable are made. ,' Inventory of Gasoline Inventory of gasoline is stated on the first -in, first -out basis II and is charged to expenditures as used. Enterprise Fund Fixed Assets II Purchased fixed assets are stated at historical cost or estimated historical cost when historical cost is not available. The total I/ amount of fixed assets valued at estimated historical cost is not II 9 II II CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued I 1. Summary of Significant Accounting Policies, Continued: II Enterprise Fund Fixed Assets, Continued available. Donated assets are recorded at fair market value at II date of donation. Estimated fair market value of donated assets is determined based on engineering estimates of current cost or price indexed cost. The total amount of fixed assets donated is 11 not available. Depreciation is computed on assets in service, using the straight -line method over their estimated useful lives: II Building 40 years Sewer system 40 years Storm Drainage system 40 years Equipment 5 to 10 years II Autos and trucks 3 years 11 Depreciation expense on fixed assets donated or acquired from capital contributions is recognized as a reduction of contributed capital. Such reduction is recorded by a transfer from retained earnings. II Normal maintenance and repairs are charged to operations as in- curred. Major additions, improvements and replacements are I capitalized. Gains or losses from sales or retirements of fixed assets are included in operations. 11 General Fixed Assets General fixed assets are stated at historical cost or estimated historical cost when historical cost is not available. The total I amount of fixed assets valued at estimated historical cost is not available. Fixed assets are charged to expenditures in the Governmental Fund Types as purchased and capitalized in the II General Fixed Assets Account Group. Maintenance and repairs of fixed assets are charged to expenditures in the Governmental Fund Types as incurred and are not capitalized. As fixed assets are disposed of, the estimated historical cost or historical cost is I removed from this account group; proceeds from sales of general fixed assets are recorded as General Fund revenue. Depreciation is not computed on general fixed assets. I Expenditures for public domain fixed assets (streets, sidewalks, curbs and gutters, lighting systems and similar assets) that are II immovable and of value only to the City as a governmental unit are reported as expenditures as incurred and are not capitalized. II 10 II CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued I 1. Summary of Significant Accounting Policies, Continued: Long -Term Debt ' Long -term debt directly related and expected to be paid from the Enterprise Funds or Special Assessments Fund is recorded in these funds. All other unmatured long -term debt is recorded in the General Long -Term Debt Account Group. Repayment of general bonded debt recorded in the General Long -Term Debt Account Group is made from the Debt Service Fund. Payment of vacation liabilities, capital lease obligation and the amount due to Special Assessments Fund in the General Long -Term Debt Account Group will be made from the General Fund. Accrued Vacation Pay Accumulated vested vacation pay is accrued in the Enterprise Funds as it is earned by employees. In Governmental Fund Types the amounts, if any, expected to be liquidated with expendable available resources are accrued as liabilities of the funds and the amount payable from future resources is recorded in the General Long -Term Debt Account Group. Sick pay is recorded in all funds when leave is taken. II Contributed Capital Contributed capital in the Enterprise Funds represents the accumu- lation of contributions in the form of cash or other assets which generally do not have to be returned to the contributor. Such contributions are recorded directly to contributed capital and, accordingly, are not recognized as revenue. The following trans - I actions are recorded in contributed capital in the Enterprise Funds: Receipts of federal and state grants for acquisition of 1 fixed assets. • Fixed assets contributed from other funds or the General Fixed Assets Account Group. • Contributions from others for the acquisition or con - struction of fixed assets. • Transfers from retained earnings for depreciation on fixed assets donated or acquired by contributed capital I/ resources. 1 1 11 II II CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued II 9. Long -Term Debt: Bonds Payable I/ Bonds payable transactions for the year and future maturities of bond principal and interest at June 30, 1987 are as follows: Principal I Matured Outstanding Issued and Paid Defeased Outstanding June 30, During During During June 30, 1986 Year Year Year 1987 Interest I General Obligation Bonds: General obligation city building bonds with interest rates from 5.95% to 18% (original II amount $4,415,000): Fiscal year: 1987 $ 45,000 $ 25,000 $70,000 1988 50,000 35,000 $ 85,000 $ 174,438 I 1989 55,000 35,000 90,000 167,037 1990 60,000 35,000 95,000 158,951 1991 65,000 40,000 105,000 150,924 1992 75,000 40,000 115,000 142,363 1993 -1997 505,000 550,000 $ 335,000 720,000 567,545 I 1998 -2002 835,000 975,000 835,000 975,000 325,050 2003 -2004 470,000 480,000 470,000 480,000 43,500 $2,160,000 $2,215,000, $79,900 $1,640,000 $2,065.000 $1.729,808 I Matured Outstanding and Paid Outstanding June 30, During June 30, 1986 Year 1987 Interest I Bancroft Improvement Bonds: Seven general obligation improvement bond issues with interest rates from 6% to 16.75% (original amounts $3,447,181): II Fiscal year: 1987 $ 278,000 $278,000 1988 308,000 $ 308,000 $215,932 1989 328,000 328,000 187,955 II 1990 363,000 363,000 156,929 1991 388,000 388,000 122,257 1992 433,000 433,000 83,269 1993 -1997 599,000 599,000 92,572 1998 -2002 50,000 50,000 19,975 II 2003 10,000 10,000 575 $4_757.000 $78,000 $8,479,000 079,444 II Other Long -Term Debt Changes in other long -term debt for the year ended June 30, 1987 are as follows: Outstanding Outstanding II June 30, 1986 Additions Deletions June 30, 1987 Capital lease obligation (computer system) $._ $50,5 $25,45 $224,116 Accrued vacation payable $,4Q,948 $11.E122 $126,539 Amount due to Special Assessments Fund $ - $124.9 $24,950 I The City leases its computer system under a 4 year capital lease. At the end of the lease term ownership of the computer system is transferred to the City. Principal and interest at 9% are due annually. II Amount due to Special Assessments Fund will be funded over 15 years by the General Fund. 20 II II II CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued II I 9. Long -Term Debt, Continued: Other Long -Term Debt, Continued I Future maturities of other long -term at June 30, 1987 are as follows: Amount II Due to Accrued Special Capital Vacation Assessments I Lease Payable Fund 69,178 $126,539 $ 8,330 1988 69,178 8,330 II 1989 69,178 8,330 1990 69,178 8,330 1991 8,330 I Thereafter 83,300 Total 276,712 126,539 124,950 Less amount representing interest (52,596) II Total $224,116 $126,539 $124,950 II 10. Contributed Capital: The changes in contributed capital were as follows: I Balance, beginning of year $6,768,739 Transfer of depreciation on certain contributed I fixed assets from retained earnings (195,764) ributions from customers 682,836 II Balance, end of year $7,255.811 11. Retirement Plans: 11 Pension Plans I Full -time police employees who have completed six months of serv- ice are participants in a city sponsored pension program consist- ing of a defined benefit plan and a defined contribution plan. Required employer contributions are accounted for in a defined benefit plan and required employee contributions, which are also paid by the City, are accounted for in a defined contribution plan. II p 21 II II CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued II II 11. Retirement Plans, Continued: Pension Plans, Continued II The cost of the defined contribution plan is accrued and funded currently. The cost of the defined benefit plan, including amortization of the unfunded prior service cost over forty years I and normal cost, is also accrued and funded currently. Due to the unitary nature of the police pension program, these two plans have been accounted for in one pension trust fund. Pension contribu- ' tions made to this fund by the City for the year ended June 30, 1987 were $153,961. There are no unfunded accrued liabilities for these plans. II A comparison of accumulated plan benefits and plan net assets for the police employees' defined benefit plan as of July 1, 1986, the latest actuarial valuation study, is presented below: I Actuarial present value of accumulated plan benefits: Vested $ 563,505 Nonvested 66,010 I $ 629.515 II Net assets available for benefits $1,131,490 The weighted average assumed rate of return used in determining II the actuarial present value of accumulated plan benefits was 7.5 %. The City contributes to defined contribution plans for all eligi- ble employees. Eligible employees include all employees except I police employees. Contributions to the plans are made to a fiduciary. The fiduciary holds the funds in trust and makes distributions as provided by the plans. Expenditures by the City II for the plans were $51,290 for the year ended June 30, 1987. Deferred Compensation Plan II The City offers certain employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees except police employees, II permits them to defer a portion of their salary until future years. Contributions for the plan are made to fiduciaries who hold the funds in trust for the plan participants. The deferred II compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. II I 22 1 CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued ' 11. Retirement Plans, Continued: Deferred Compensation Plan, Continued All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attribut- able to those amounts, property, or rights are (until paid or made ' available to the employee or other beneficiary) solely the proper- ty and rights of the City (without being restricted to the provi- sions of benefits under the plan), subject only to the claims of 11 the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City's in an amount equal to the fair market value of the deferred account for each ' participant. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. ' Expenditures by the City for the deferred compensation plan were $37,497 for the year ended June 30, 1987. 12. Transactions with Unified Sewerage Agency of Washington County: The City of Tigard collects charges for treatment of City sewage on behalf of the Unified Sewerage Agency of Washington County (USA) and remits all collections to USA except for 30% of sewer ' service charges collected and 20% of connection charges collected, in accordance with an agreement between the City and USA dated January 18, 1972. Payments of $1,058,978 were made to USA during ' 1987 under this agreement. The net amount retained by the City is reported as revenues in the Enterprise Funds in the Combined Statement of Revenues, Expenses ' and Changes in Retained Earnings /Fund Balance - All Proprietary Fund Types and Similar Trust Fund. Revenues are reported net because the City acts in a fiduciary capacity on behalf of USA. 13. Commitments and Contingencies: The City has a contingent liability against its full faith and credit for Bancroft improvement bonds recorded in the Special Assessments Fund in the amount of $2,479,000. The City's general credit is obligated on these bonds only to the extent that liens foreclosed against properties involved in the assessment districts and collections of related assessments and interest are insuffi- cient to retire outstanding bonds and pay bond interest. I 23 II II CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued I I 14. Segment Information for Enterprise Funds: The City's two Enterprise Funds account for the acquisition, operation, and maintenance of sewer and storm drainage systems I which are supported by user charges. Segment information for the year ended June 30, 1987 is as follows: II Sewer Operations Storm Drainage Operations Total Operating revenues $ 570,361 $ 155,741 $ 726,102 1 Depreciation 122,340 109,164 231,504 Operating loss (30,364) (204,564) (234,928) Net loss (1,739) (191,757) (193,496) I Current capital contri- butions 366,972 315,864 682,836 Fixed asset additions 372,971 166,759 539,730 I Net working capital 506,440 293,366 799,806 Total assets 4,640,959 3,485,908 8,126,867 Total equity 4,404,289 3,482,927 7,887,216 II 15. Deficit Fund Balance: II The deficit of $2,121,526 in the Special Assessments Fund at June 30, 1987 arises principally because of the application of generally accepted accounting principles to the financial report- ing for the fund. Bond proceeds used to finance construction of ' special assessment projects are not recognized as an "other financing source" because the liabilities for special assessment bonds payable are accounted for in the Special Assessments Fund. I Special assessments are recognized as revenue only to the extent that individual installments are collected within sixty days following year end. II 16. Bond Defeasance: I On February 24, 1987, the City issued $2,215,000 in General Obligation Bonds with an average interest rate of 6% to advance refund $1,640,000 of outstanding 1984 Series bonds with an average I interest rate of 10.44 %. The net proceeds of $2,087,501 (after payment of $88,000 in underwriting fees and other issuance costs and $39,499 of accrued interest) were used to purchase U.S. Government Securities. Those securities were deposited in an II II I 24 CITY OF TIGARD, OREGON NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS, Continued I 16. Bond Defeasance, Continued: irrevocable trust with an escrow agent to provide for future debt service payments on the 1984 Series bonds. As a result, ' the 1984 Series bonds are considered defeased and the liability for those bonds has been removed from the General Long -Term Debt Account Group. The City advance refunded the 1984 Series bonds to reduce its total debt service payments over the next 17 years by approxi- mately $220,000 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $158,870. On June 30, 1987, $1,640,000 of bonds outstanding are considered defeased. I I r I I I I I i I 11 25 I I I 1 I I 11 SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules) I/ I I I I 1 I I 1 I 11 ' GENERAL FUND w This fund accounts for the financial operations of the City which are not accounted for in any other fund. Principal resources are property taxes, franchise fees, intergovernmental revenues, and licenses and permits. Primary expenditures in the General Fund are made for police protection, community development and administration. I 11 I I 11 11 I I I 11 II CITY OF TIGARD, OREGON GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 I 1 I Variance Revised Favorable Budget Actual (Unfavorable) I REVENUES: Property taxes: Current year $1,532,000 $1,549,314 $ 17,314 Prior years 75,000 98,932 23,932 Other 500 (500) Franchise fees 790,000 745,520 (44,480) Licenses and permits 554,000 642,222 88,222 Intergovernmental revenues 495,000 510,284 15,284 Charges for current services 36,000 23,580 (12,420) 1 Fines and forfeitures 155,000 144,559 (10,441) Use of money and property 104,000 111,759 7,759 Nonrevenue receipts 9,500 12,423 2,923 Recovered expenditures and other 42,000 148,700 106,700 1 Total revenues 3,793,000 3,987,293 194,293 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 1,028,304 1,036,070 7,766 I Total $4.821.304 $5,023,363 $ 202.059 EXPENDITURES: Community services $2,413,911 $2,367,972 $ 45,939 l Community development 925,445 848,023 77,422 Policy and administration 97,000 87,870 9,130 City -wide support functions 355,000 342,289 12,711 Contingency 1,072,073 1,072,073 I Capital projects 98,000 62,548 35,452 4,961,429 $3.708.702 $1.252.727 I UNAPPROPRIATED ENDING FUND (DEFICIT) BALANCE (140,125) $4,821,304 II II 1 r 11 26 II I I i I 1 SPECIAL REVENUE FUNDS I # The Special Revenue Funds account for revenue derived from specific tax or other earmarked revenue sources which are legally restricted to finance particular functions or activities. Funds included in this fund category are: I Federal Revenue Sharing State Tax Street Streets SDC Parks SDC County Road Levy County Gas Tax I I i I 1 1 1 11 II CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1987 II I State County Tax Streets Parks Road County Street SDC SDC Levy Gas Tax Total ASSETS II Cash and investments $670,927 $724,818 $155,922 $191,499 $134,874 $1,878,040 Accounts receivable 11 , Due from other funds 20,111 17,729 37,840 Total assets 091,03a $724.818 $173,651 $291.499 $134.874 $1.915.880 11 LIABILITIES AND FUND EQUITY II LIABILITIES: Accounts payable $ 52,320 168 $ 706,188 Due to other funds $409,145 22,829 $145,531 $ 65,515 $ 63, Total liabilities 409,145 75,149 145,531 65,515 63,168 758,508 11 FUND EQUITY: Fund balances - unreserved 281,893 649,669 28,120 125,984 71,706 1,157,372 II Total liabilities and fund balances 491438 $724,818 $173.651 $.91,499 $ ;34,874 $1.915.880 II II I/ 1 1 1 27 11 I II CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS) II for the fiscal year ended June 30, 1987 I/ I Federal State County Revenue Tax Streets Parks Road County Sharing Street SDC SDC Levy Gas Tax Total II REVENUES: Licenses and permits $ 8,739 $ 8,739 Intergovernmental 11 revenues $19,734 457,130 $ 7,590 $252,102 736,556 Charges for services $289,304 $ 69,500 358,804 Miscellaneous revenues 15,702 32,117 6,313 7,776 4,300 66,208 I EXPENDITURES: Total revenues 19,734 481,571 321,421 75,813 15,366 256,402 1,170,307 I Community services 28,667 29,000 24,820 82,487 Community development 282,457 37,421 56,209 238,346 614,433 Policy and administra- tion 12,020 12,019 24,039 City -wide support II functions 18,587 36,667 36,667 91,921 Capital projects 26,447 117,045 105,209 19,646 268,347 Total expendi- tures 47,254 386,591 154,466 161,418 19,646 311,852 1,081,227 Excess of revenues over (under) expenditures (27,520) 94,980 166,955 (85,605) (4,280) (55,450) 89,080 I FUND BALANCES - beginning of year 27,520 186,913 482,714 113,725 130,264 127,156 1,068,292 11 FUND BALANCES - end of year $ - $881,893 $049,569 $_28,120 $125.984 $.71,7 $,.157.372 II II I' 11 II 28 II I ' CITY OF TIGARD, OREGON FEDERAL REVENUE SHARING FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 I I Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: Federal revenue sharing entitlements $48,718 $19,734 $(28,984) Interest 2,282 (2,282) Total revenues 51,000 19,734 (31,266) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 27,520 27,520 Total $78,520 $47,254 $(31,266) I/ Variance Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: Community services $40,000 $28,667 $11,333 City -wide support functions 27,500 18,587 8,913 67,500 $47,254 $20.246 UNAPPROPRIATED ENDING FUND BALANCE 11,020 $78,520 I I 11 I/ I I/ 29 11 II I CITY OF TIGARD, OREGON STATE TAX STREET FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 II II I Revised Variance Favorable Budget Actual (Unfavorable) II REVENUES: State gas tax $400,087 $457,130 $ 57,043 Interest 20,000 15,702 (4,298) Lighting subdivisions 8,000 8,739 739 II Total revenues 428,087 481,571 53,484 BEGINNING FUND BALANCE AVAILABLE I FOR APPROPRIATION Total 186,913 186,913 $615,000 $668,484 $ 53.484 II I Revised Variance Favorable Appropriations Actual (Unfavorable) EXPENDITURES: li Community services $ 29,000 $ 29,000 Community development 282,500 282,457 $ 43 Policy and administration 12,500 12,020 480 I City -wide support functions 40,000 36,667 3,333 Contingency 53,100 53,100 Capital projects 175,000 26,447 148,553 II 592,100 $?$6,591 $205.509 UNAPPPROPRIATED ENDING FUND BALANCE 22,900 q15, 900 II II I/ 11 I/ 30 II I ' CITY OF TIGARD, OREGON STREETS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 I I I Revised Variance Favorable Budget Actual (Unfavorable) REVENUES: I/ System development charges $319,286 $289,304 $(29,982) Interest 10,000 32,117 22,117 Total revenues 329,286 321,421 (7,865) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 482,714 482,714 Total $812,000 $p04,135 $ (7.865) I Variance I Revised Favorable ropriations Actual (Unfavorable) EXPENDITURES: Community development $ 37,500 $ 37,421 $ 79 Capital projects 774,500 117,045 657,455 Total $$12,000 $54,466 $657,534 I I l 1/ I/ I 31 II 1 CITY OF TIGARD, OREGON PARKS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 II II Variance I Revised Favorable Budget Actual (Unfavorable) REVENUES: I/ System development charges $ 61,275 $ 69,500 $ 8,225 Interest 5,000 6,313 1,313 1/ Total revenues 66,275 75,813 9,538 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 113,725 113,725 II Total $180.000 $289,538 $ 9,538 II Variance Revised Favorable I Appropriations Actual (Unfavorable) EXPENDITURES: I Community development $ 59,173 $ 56,209 $ 2,964 Capital projects 120,827 105,209 15,618 Total $280 $261,418 $28.582 II II I/ II I/ I/ I/ 32 II I CITY OF TIGARD, OREGON COUNTY ROAD LEVY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: 1/ County maintenance and repair tax $ 2,500 $ 7,590 $ 5,090 Interest 7,236 7,776 540 Total revenues 9,736 15,366 5,630 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 130,264 130,264 Total $240,000 $145.630 $ 5.630 I Variance Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: Capital projects $130,000 $ 19,646 $110.354 UNAPPROPRIATED ENDING FUND BALANCE 10,000 $,40,000 I I I/ I/ I I 33 1 II II CITY OF TIGARD, OREGON COUNTY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 II II II Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: County road tax $268,844 $252,102 $(16,742) Interest 4,300 4,300 II Total revenues 268,844 256,402 (12,442) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 127,156 127,156 11 Total $396,000 $383.558 $(12.442) II Variance I' Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: I Community services $ 25,000 $ 24,820 $ 180 Community development 238,500 238,346 154 Policy and administration 12,500 12,019 481 City -wide support functions 40,000 36,667 3,333 I/ 316,000 $311.852 $ 4,148 UNAPPROPRIATED ENDING FUND BALANCE 80,000 II $396000 II II II II I 34 i i 1 1 1 SPECIAL ASSESSMENTS FUND 1 The Special Assessments Fund accounts for the construc- tion and financing of specific street and sanitary sewer projects ' which benefit property owners. The fund's primary financing sources are assessments against owners of benefited property. Assessments, which become a lien against the benefited property, are levied based upon the estimated cost of the projects. The benefited property owner may elect to pay the assessment over a period of ten years (or twenty years for parking facilities and for assessments levied after September 1971) in semi - annual installments. Upon completion of the project, general obligation ten -year and twenty -year serial coupon bonds are sold in an amount ' equal to the unpaid assessments. 1 1 I 1 i 1 II CITY OF TIGARD, OREGON I SPECIAL ASSESSMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 II I Variance Favorable Budget Actual (Unfavorable) 11 REVENUES: Collection of bonded assessments $ 520,951 $ 547,106 $ 26,155 Interest on assessments 221,062 221,062 Interest on investments 17,826 17,826 I Total revenues 520,951 785,994 265,043 OTHER FINANCING SOURCES: Bond proceeds 4,000,049 (4,000,049) II Total revenues and other financing sources 4,521,000 785,994 (3,735,006) BEGINNING FUND BALANCE AVAILABLE II FOR APPROPRIATION 1,035,098 510,793 (524,305) Total $5.556,098 $1.296.787 $(4,259.311) EXPENDITURES: II Capital projects $4,000,049 $ 418,362 $3,581,687 Bond principal: Bancroft #11 3,000 3,000 II 12 15,000 15,000 13 35,000 35,000 14 10,000 10,000 15 70,000 70,000 I 16 17 110,000 110,000 35,000 35,000 Total bond principal 278,000 278,000 I Bond interest: Bancroft #11 1,759 1,759 12 3,532 3,532 13 30,158 30,158 14 18,003 18,003 15 58,850 58,850 16 92,468 92,468 17 38,181 38,181 II Total bond interest 242,951 242,951 Total expenditures 4,521,000 $, 939.313 $3.581.687 II UNAPPROPRIATED ENDING FUND BALANCE 1,035,098 $5.556.098 II II 35 II II I II I ENTERPRISE FUNDS II II These funds are used to finance and account for the acquisition, operation and maintenance of sewer and storm drainage I facilities which are supported by user charges. Funds included in this fund category are: II . Sewer Fund . Storm Drainage Fund II II II II II I II II II II II CITY OF TIGARD, OREGON ENTERPRISE FUNDS COMBINING BALANCE SHEET II June 30, 1987 II II Storm Sewer Drainage Fund Fund Total II ASSETS: Current assets: Cash and investments $ 557,987 $ 249,992 $ 807,979 Accounts receivable 177,477 45,690 223,167 I Property taxes receivable 7,646 665 8,311 Total current assets 743,110 296,347 1,039,457 Fixed assets, net 3,897,849 3,189,561 7,087,410 I $4,640.959 $3,485.908 $8,126.867 LIABILITIES AND FUND EQUITY: II Current liabilities: Accounts payable and accrued liabilities $ 228,708 $ 228,708 Accrued vacation pay 6,276 $ 2,981 9,257 Due to other funds 1,686 1,686 II Total current liabilities 236,670 2,981 239,651 Fund equity: Contributed capital 3,704,386 3,551,425 7,255,811 I Retained earnings (deficit) 699,903 (68,498) 631,405 Total fund equity 4,404,289 3,482,927 7,887,216 II $4,64Q.959 $3.485.908 $13,126.867 II II II II II II II 36 II CITY OF TIGARD, OREGON ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS II for the fiscal year ended June 30, 1987 II I Storm Sewer Drainage Fund Fund Total I OPERATING REVENUES: Service charges $570,361 $155,741 $726,102 I OPERATING EXPENSES: Salaries and wages 268,904 119,457 388,361 Contracted services 41,085 21,293 62,378 General and administrative and other 168,396 110,391 278,787 Depreciation 122,340 109,164 231,504 II Total operating expenses 600,725 360,305 961,030 Operating loss (30,364) (204,564) (234,928) I NONOPERATING REVENUE - Interest 28,625 12,807 41,432 Net loss (1,739) (191,757) (193,496) II Add: Depreciation on fixed assets donated or acquired from capital contributions that reduces contributed capital 86,600 109,164 195,764 I Increase (decrease) in retained earnings 84,861 (82,593) 2,268 RETAINED EARNINGS - beginning of year 615,042 14,095 629,137 RETAINED EARNINGS - end of year $699,903 $(68,498) $631,405 I II II II II II 37 II II I CITY OF TIGARD, OREGON ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION for the fiscal year ended June 30, 1987 I I I Sewer Storm Drainage Fund Fund Total Working capital provided (used): II In operations: Net loss $ (1,739) $(191,757) $(193,496) Charges to operations not requiring outlay I of working capital in the current period - depreciation 122,340 109,164 231,504 Working capital provided from (used in) operations 120,601 (82,593) 38,008 I Capital contributions, net of donated fixed assets of $366,972 and $166,759, respectively 149,105 149,105 II Fixed asset additions (5,999) $1 (5,999) Increase in working capital 14.602 $ 66.512 $181.114 II Changes in components which increased (decreased) working capital: Cash and investments $(11,225) $ 43,964 $ 32,739 Accounts receivable 111,690 15,588 127,278 I Property taxes receivable 225 (617) (392) Accounts payable and accrued liabilities 1,544 1,544 Customer deposits 17,767 17,767 Accrued vacation (3,713) (2,981) (6,694) Due to other funds (1,686) 10,558 8,872 I Increase in working capital $214.60Z $ 66.512 $281.114 II 1 I 1 II II 38 II II CITY OF TIGARD, OREGON SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 I II II Variance Original Favorable Budget Actual (Unfavorable) REVENUES: I Sewer service charges $ 595,000 $570,361 $(24,639) Interest 20,000 28,625 8,625 Total revenues 615,000 598,986 (16,014) B EGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 615,042 391,842 (223,200) II Total $2,230.042 $990.828 $(239.214) 1 Variance Revised Favorable I Appropriations Actual (Unfavorable) EXPENDITURES: Community services $ 137,250 $136,307 $ 943 II Community development 264,000 222,335 41,665 Policy and administration 40,000 38,461 1,539 City wide support function 90,000 82,502 7,498 Contingency 87,638 87,638 I Capital projects 473,000 4,779 468,221 1,091,888 $484,384 $607,504 UNAPPROPRIATED ENDING FUND BALANCE 138,154 I $1. 6 2,30,042 Total expenditures, as reported above $484,384 I Add depreciation 122,340 Less fixed asset additions (5,999) Total expenses as reported on page 37 $p0q,725 II II II II 39 I I I CITY OF TIGARD, OREGON STORM DRAINAGE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1987 I II I Variance Original Favorable Budget Actual (Unfavorable) II REVENUES: Service charges $280,000 $304,846 $ 24,846 Interest 10,000 12,807 2,807 II Total revenues 290,000 317,653 27,653 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 100, I 14,096 (85,904) Total $390,000 $331.749 $(58.251) I Variance I Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: II Community services $ 50,000 $ 49,597 $ 403 Community development 129,500 110,512 18,988 Policy and administration 25,000 24,038 962 City -wide support function 65,000 59,584 5,416 I Contingency 12,387 12,387 Capital projects • 100,000 7,410 92,590 381,887 $51,141 $130,746 II UNAPPROPRIATED ENDING FUND BALANCE 8,113 $390,000 II Total revenues, as reported above $317,653 Less amounts recognized as contributed capital (149,105) Total revenues as reported on page 37 $148,548 II Total expenditures, as reported above $251,141 I Add depreciation 109, $ 164 Total expenses as reported on page 37 60.305, I II 40 II I 1 11 1 FIDUCIARY FUNDS I/ 1 These funds account for resources received and held by the City in a fiduciary capacity. Disbursements from these funds are made in accordance with the trust agreement or conditions of the trust for the particular fund. Funds included in this ' category are: Agency Fund - Deferred Compensation Fund Pension Trust Fund I I 1 I I 1 1 I/ CITY OF TIGARD, OREGON FIDUCIARY FUNDS COMBINING BALANCE SHEET June 30, 1987 11 I Agency Fund - Deferred Compensation Pension 11 Fund Trust Fund Total Assets: Cash and investments $463,909 $,,780,095 $8,244.004 I/ Liabilities and fund balance: Liabilities: 1 Deferred compensation payable $463,909 $ 463,909 Fund balance: Reserved for employee retirement benefits $1,780,095 1,780,095 063,909 $,x,780.095 $2.244.004 I 11 I 1 I 1 I 1 1 1 41 II 1 I/ CITY OF TIGARD, OREGON AGENCY FUND - DEFERRED COMPENSATION FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES for the fiscal year ended June 30, 1987 I 1/ Balance Balance June 30, June 30, ASSETS 1986 Additions Deletions 1987 Cash and investments $06,57 $$9,151 $ 1,817 $463,909 I/ LIABILITIES 1 Deferred compensation payable $406,575 $89,151 01.817 $463,909 I I 11 I I I I I 11 I 42 II I 11 I I GENERAL FIXED ASSETS ACCOUNT GROUP I 11 This account group accounts for the fixed assets of the City other than those recorded in the Enterprise Funds. I 11 I I I I I I I I I I CITY OF TIGARD, OREGON SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCES June 30, 1987 I I/ GENERAL FIXED ASSETS Land $ 931,081 Buildings 2,885,783 I/ Equipment 861,111 Autos and trucks 320,822 Office equipment 446,424 Library books 366,375 Total general fixed assets $5.811.596 I INVESTMENT IN GENERAL FIXED ASSETS Balance, beginning of year $5,174,212 Additions were provided by: General Fund 614,784 Donated assets 22,600 Total investment in general fixed assets $5,811.596 1 I I 1 I I/ I I I 43 I CITY OF TIGARD, OREGON SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY SOURCES for the fiscal year ended June 30, 1987 I I/ Autos and Office Library Land Buildings Equipment Trucks Equipment Books Total Balance, beginning of year $913 481 $2,823,235 $759 768 $178,595 $195,850 $303,283 $5,174,212 ,, I Add: Additions from: General Fund 62,548 96,343 142,227 250,574 63,092 614,784 I Donated assets 17,600 5,000 22,600 17,600 62,548 101,343 142,227 250,574 63,092 637,384 Balance, end of year $931,081 $2,885.783 $p61,111 $320,822 $446.424 $366,375 $5,811.596 11 I I I I I I I I 44 I II CITY OF TIGARD, OREGON II SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY June 30, 1987 II II Machinery, I/ Equipment Function and Activity Total Land Buildings and Other General Government: Control: I/ Legislative $ 3,626 $ 3,626 Executive 55,448 55,448 Judicial 5,750 5,750 11 Total control 64,824 64,824 Staff agencies: Finance 317,377 317,377 II Recording and reporting 38,757 38,757 Administrative officers and boards 83,789 83,789 Planning and zoning 198,702 198,702 Research and investigation 152,330 152,330 II General government buildings 3,261,611 $597,130 $2,664,481 Total staff agencies 4,052,566 597,130 2,664,481 790,955 I Total general government 4,117,390 597,130 2,664,481 855,779 Public safety: Police protection 445,224 1,171 75,224 368,829 Protective inspection 24,009 24,009 II Total public safety 469,233 1,171 75,224 _ 392,838 Highways 268,701 2,300 39,286 227,115 II Libraries 420,522 420,522 Recreation 535,750 330,480 106,792 98,478 Total general fixed assets $5,811,596 $ ,931.Q81 $?•885.783 $,,994,732 II II II I/ I/ 45 1 1 II II CITY OF TIGARD, OREGON SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY June 30, 1987 I II General General Assets 1 Fixed Assets Fixed and Activity June 30, 1986 Additions June 30, 1987 General Government: I Control: Legislative $ 3,626 $ 3,626 Executive 16,666 $ 38,782 55,448 Judicial 5,750 5,750 1 Total control 26,042 38,782 64,824 Staff agencies: Finance 66,803 250,574 317,377 I/ Recording and reporting 37,381 1,376 38,757 Administrative officers and boards 83,789 83,789 Planning and zoning 159,503 39,199 198,702 Research and investigation 152,330 152,330 I/ General government buildings 3,199,063 62,548 3,261,611 Total staff agencies 3,698,869 353,697 4,052,566 Total general government 3,724,911 392,479 4,117,390 I Public safety: Police protection 379,060 66,164 445,224 Protective inspection 22,097 1,912 24,009 II Total public safety 401,157 68,076 469,233 Highways 252,721 15,980 268,701 I Libraries 334,593 85,929 420,522 Recreation 460,830 74,920 535,750 Total general fixed assets $5,174.212 037,384 $5,811,596 II I 1 1 1 I 46 II I 1 I 11 1 OTHER SCHEDULES 1 Schedules included in this section are: • Property Tax Transactions and Outstanding Balances I • Bond and Bond Interest Transactions Future Debt Service Requirements of Bancroft Improvement Bonds Future Debt Service Requirements of General Obligation i Bonds I 11 I 1 II CITY OF TIGARD, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES for the fiscal year ended June 30, 1987 II Property Add Add Property Taxes Levy as (Deduct) Taxes I/ Receivable Extended Corrections Deduct Deduct Receivable June 30, By and Cash Add Discounts June 30, 1986 Assessor Adjustments Collections Interest Allowed 1987 1986 -87 $1,946,727 $(2,467) $(1,773,229) $ 1,994 $(37,346) $135,679 II 1985 -86 $ 98,760 816 (57,201) 5,168 47,543 1984 -85 42,134 (3,521) (23,246) 4,435 19,802 II 1983 -84 27,748 (2,294) (19,185) 5,043 11,312 1982 -83 11,388 (796) (13,373) 4,376 1,595 11 1981 -82 and prior 1,428 346 (1,314) 473 933 $281.458 $1,940.727 $(7.916) $(2.887,548) $21,489 $(37.346) $2 II Distributed as follows: General Fund: Current $1,551,536 $118,652 II Prior years' levies 88,741 60,109 Total General Fund 1,640,277 178,761 II Debt Service Fund 164,094 29,792 Sewer Fund (sewer charges collected on tax roll and included in sewer service charges) 76,549 7,646 II Storm Drainage Fund (storm drainage charges collected on tax roll and included in storm drainage service charges) 6,628 665 1 Total $.,887,548 $216.864 I II II 1 II 47 II 1- 1 1 1 r 1 1 1 1 1 1 1 1 1 1 1 1 r CITY OF TIGARD, OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS for the fiscal year ended June 30, 1987 Bond Transactions Interest Transactions Out- Out- Out- Out- standing standing standing standing Original June 30, June 30, June 30, June 30, Bancroft Bonds Issue 1986 Issued Matured Paid Defeased 1987 1986 Matured Paid 1987 Issued August 1, 1975 $ 57,840 $ 27,000 $ 3,000 $ 3,000 $ 24,000 $ 1,759 $ 1,759 Issued November 1, 1979 128,082 60,000 15,000 15,000 45,000 $ 673 3,533 3,533 $ 673 Issued November 1, 1981 374,795 275,000 35,000 35,000 240,000 1,625 30,158 30,158 1,625 Issued September 1, 1982 184,664 170,000 10,000 10,000 160,000 18,002 18,002 Issued October 1, 1982 838,600 665,000 70,000 70,000 595,000 219 58,850 58,837 232 co Issued October 1, 1982 1,371,200 1,100,000 110,000 110,000 990,000 890 92,468 89,941 3,417 Issued September 1, 1984 492,000 460,000 35,000 35,000 425,000 38,181 38,181 $2,757,000 $278.000 $278.000 $2. 479,000 $3.407 $242.951 $240,411 $5.947 General Obligation Bonds Issued June 1, 1984 2,200,000 $2,160,000 $ 45,000 $ 45,000 $1,640,000 $ 475,000 $ - $183,142 $183,142 $ - Issued February 24, 1987 2,215,000 - $2 25,000 25,000 2,190,000 - 34,795 34,795 - $2.160.000 $2,215.000 $ 70.000 $ 70.000 $1.640.000 $2. 665,000 $ - $217.937 $217.937 5 - 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF BANCROFT IMPROVEMENT BONDS as of June 30, 1987 Year Issued Issued Issued Issued Issued Issued Issued of August 1, 1975, November 1, 1979, November 1, 1981, September 1, 1982, October 1, 1982, October 1, 1982, September 1, 1984, Matur- Total Requirements 6% to 7% 6% to 7 -9/10% 11 -1/4% to 13% 10 -1/4% to 11 -3/4% 8 -1/2% to 13 -1/4% 8 -2/10% to 16 -3/4% 7.6% to 16% ity Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 1987- 88 $ 308,000 $215,932 $ 3,000 $1,556 $15,000 $2,527 $ 40,000 $25,633 $ 10,000 $ 16,828 $ 80,000 $ 52,375 $125,000 $ 82,393 $ 35,000 $ 34,620 1988- 89 328,000 187,955 3,000 1,354 15,000 1,519 40,000 21,102 10,000 15,690 85,000 45,050 135,000 71,530 40,000 31,710 1989- 90 363,000 156,929 3,000 1,151 15,000 506 45,000 16,213 10,000 14,640 90,000 37,062 155,000 59,050 45,000 28,307 1990- 91 388,000 122,257 3,000 945 55,000 10,370 10,000 13,640 100,000 28,150 170,000 44,742 50,000 24,410 1991- 92 433,000 83,269 3,000 735 60,000 3,570 10,000 12,640 115,000 17,794 190,000 28,532 55,000 19,998 1992- 93 413,000 43,255 3,000 525 10,000 11,628 125,000 6,094 215,000 9,943 60,000 15,065 1993 - ,p 94 78,000 20,515 3,000 315 10,000 10,590 65,000 9,610 ` 473 1994- 10,000 9,527 75,000 3,375 95 88,000 13,007 3,000 105 1995- 96 10,000 8,445 10,000 8,445 1996- 97 10,000 7,350 10,000 7,350 1997- 98 10,000 6,245 10,000 6,245 1998- 99 10,000 5,130 10,000 5,130 1999- 2000 10,000 4,005 10,000 4,005 2000- 2001 10,000 2,870 J: 10,000 2,870 2001- 2002 10,000 1,725 10,000 1,725 2002- 2003 10,000 575 10,000 575 To- tals $2,479.000 $879.464 $24.000 $6,686 $45,000 $4.552 $240.000 $76,888 $160.000 $141.528 $595.000 $186.525 $990.000 $296.190 $425.000 $167,095 II CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS as of June 30, 1987 II II II Issued Issued June 6, 1984 February 24,1987 Year of Total 9.7% to 18% 5.95% to 6% Maturity Principal Interest Principal Interest Principal Interest II 1987 -88 $ 85,000 $ 174,438 $ 50,000 $ 49,883 $ 35,000 $ 124,555 1988 -89 90,000 167,037 55,000 43,882 35,000 123,155 1989 -90 95,000 158,951 60,000 37,283 35,000 121,668 I 1990 -91 105,000 150,924 65,000 30,832 40,000 120,092 1991 -92 115,000 142,362 75,000 24,170 40,000 118,192 1992 -93 120,000 132,862 80,000 16,670 40,000 116,192 1993 -94 135,000 123,062 90,000 8,910 45,000 114,152 1994 -95 145,000 111,790 145,000 111,790 I 1995 -96 155,000 104,178 155,000 104,178 1996 -97 165,000 95,653 165,000 95,653 1997 -98 170,000 86,413 170,000 86,413 1998 -99 185,000 76,638 185,000 76,638 I 1999 -2000 195,000 66,000 195,000 66,000 54,300 2000 -01 210,000 54,300 210,000 2001 -02 215,000 41,700 215,000 41,700 2002 -03 235,000 28,800 235,000 28,800 2003 -04 245,000 14,700 245,000 14,700 I $2,665.000 $1,729,808 $475.0Q0 $211.630 $2.190.000 $1.518,178 II II II II II II II II 50 I I I 1 I I i STATISTICAL SECTION I I I I I I I I I I I I II I CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION - BUDGETARY BASIS for the last ten fiscal years II II City -Wide Support I Fiscal Functions, Capital Year Ended Community Community Policy and Projects Debt June 30 Services Development Administration and Other Service Total II 1978 $ 924,720 $ 444,111 $123,769 $ 136,830 $ 60,762 $1,690,192 1979 984,687 328,701 143,343 135,088 54,598 1,646,417 II 1980 1,231,631 510,098 190,308 208,062 232,502 50,348 2,214,887 1981 1,398,867 871,638 638,894 61,827 3,179,288 1982 1,591,208 1,113,210 282,349 551,917 75,425 3,614,109 I 1983 1,527,913 1,126,758 154,184 367,684 212,282 3,388,821 1984 1,680,374 1,507,879 237,028 241,984 449,545 4,116,810 II 1985 1,592,319 817,741 114,787 1,414,569 710,366 4,649,782 1986 2,157,622 968,778 132,846 3,010,368 797,154 7,066,768 II 1987 2,450,459 1,462,456 111,909 1,183,467 808,888 6,017,179 II Information derived from Comprehensive Annual Financial Reports for all governmental fund types. II II II II II II II 51 i 1 CITY OF TIGARD, OREGON II GENERAL GOVERNMENTAL REVENUES BY SOURCE - BUDGETARY BASIS for the last ten fiscal years 1 1 Fiscal I Year Licenses Inter- Charges Ended Franchise and Governmental for Fines and Miscellaneous June 30 Taxes Fees Permits Revenues Services Forfeitures Revenues* Total I 1978 $ 198,159 $166,236 $359,524 $ 658,901 $ 65,989 $ 32,880 $ 120,466 $1,602,155 1979 215,764 205,572 502,113 716,085 114,603 57,410 170,672 1,982,219 1980 256,366 275,861 362,818 893,586 51,074 57,000 329,716 2,226,421 I 1981 287,157 348,596 379,121 1,179,130 65,612 56,177 261,328 2,577,121 1982 690,118 390,637 267,598 1,381,121 67,286 57,343 491,988 3,346,091 1983 728,641 449,778 347,798 1,456,325 43,460 55,651 1,235,048 4,316,701 I 1984 904,238 468,020 286,318 921,613 243,102 70,425 932,657 3,826,373 1985 897,843 591,246 524,059 1,058,600 413,124 134,040 1,195,098 4,814,010 1986 1,226,373 941,264 548,689 1,371,804 375,982 167,610 903,175 5,534,897 II 1987 1,807,800 745,520 650,961 1,246,840 382,384 144,559 1,127,693 6,105,757 II *Includes special assessment collections. 1 Information derived from Comprehensive Annual Financial Reports for all governmental fund types. 1 1 1 1 1 1 II 52 1 1 I CITY OF TIGARD, OREGON PROPERTY TAX LEVIES AND COLLECTIONS for the last ten fiscal years 1 1 II Percent of Percent of Total Tax Delinquent Fiscal Year Percent Delinquent Total Collections Outstanding Taxes Ended Total Current Tax of Levy Tax Tax to Tax Delinquent to Tax June 30 Tax Levy Collections Collections Collections Collections Levy Taxes Levy I 1978 $ 192,345 $ 174,074 90.50% $ 27,656 $ 201,730 104.88% $ 21,179 11.01% 1979 227,357 201,349 88.56 17,123 218,472 96.09 27,790 12.22 I 1980 279,241 245,353 87.86 21,819 26,884 267,172 95.68 35,635 41,516 12.76 1981 308,904 271,649 87.94 298,533 96.64 13.44 1982 756,116 675,712 89.37 19,150 694,862 91.90 85,411 11.30 I 1983 817,642 722,215 88.33 42,635 764,850 93.54 130,010 15.90 1984 985,234 876,215 88.93 71,058 947,273 96.15 158,045 16.04 1985 962,280 864,334 89.82 90,687 955,021 99.24 164,558 17.10 I 1986 1,283,711 1,159,480 90.32 98,222 1,257,702 97.97 181,944 216,864 14.17 1987 1,946,727 1,773,229 91.09 114,319 1,887,548 96.96 11.14 I Effective July 1, 1980, taxes are levied as of July 1 each year and are payable in three installments, without interest, on November 15, February 15 and May 15. Interest is charged at the rate of 1% per month on delinquent taxes. Tax liens are foreclosed after three years' delinquencies. Taxpayers receive a discount of 3% for payment II in full by November 15 and 2% for payment of two- thirds of the total taxes due. Prior to July 1, 1980, taxes were levied as of July 1 each year and were payable quarterly, without interest, on November 15, February 15, May 15 and August 15. I Property tax collections do not agree to tax revenues on the schedule of general governmental revenues by source - budgetary basis for the last ten fiscal years due primarily to delinquent sewer charges of the City's Sewer Fund and Storm Drainage Fund which are collected through the tax rolls and included in tax collections above. II Information derived from Comprehensive Annual Financial Reports. 1 1 1 1 1 53 i E 1 1 1 1 1111 1111 1 1 1 1 1111 11111 1 1 1 1 1 CITY OF TIGARD, OREGON ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY for the last ten fiscal years Ratio of Total Public Assessed Fiscal Real Property Personal Property Utility Property Total to Total Year Estimated Estimated Estimated Estimated Estimated Ended Assessed Actual Assessed Actual Assessed Actual Assessed Actual Actual June 30 Value Value Value Value Value Value Value Value Value 1978 $234,272,679 $234,272,679 $18,733,299 $18,733,299 $13,091,905 $13,091,905 $266,097,883 $266,097,883 100% 1979 289,512,146 289,512,146 20,361,151 20,361,151 15,384,874 15,384,874 325,258,171 325,258,171 100 1980 384,440,292 384,440,292 21,065,797 21,065,797 14,968,913 14,968,913 420,475,002 420,475,002 100 1981 452,209,070 481,071,400 22,605,561 25,281,960 15,544,626 20,345,534 490,359,257 526,698,894 93 LYI 1982 566,426,435 693,465,000 31,197,001 33,662,670 20,139,054 26,271,473 617,762,490 753,399,143 82 1983 630,046,800 745,709,900 33,540,700 39,470,220 22,611,500 26,570,277 686,199,000 811,750,397 85 1984 712,347,200 786,812,100 37,192,100 40,973,590 26,504,200 29,153,338 776,043,500 856,939,028 91 1985 779,545,300 813,339,300 44,855,600 46,750,700 28,347,800 29,528,863 852,748,700 889,618,863 96 1986 824,906,100 824,906,100 49,240,710 49,240,710 32,222,117 32,222,117 906,368,927 906,368,927 100 1987 867,279,500 867,279,500 60,999,240 60,999,240 28,457,428 28,457,428 956,736,168 956,736,168 100 All property is assessed as of January 1, preceding the fiscal year beginning the following July 1. Prior to July 1, 1980, all property was required by State of Oregon statute to be assessed at 100% of its true cash value. Effective July 1, 1980, the true cash value of assessment concept was replaced by a system whereby the assessed value of individual property may not increase more than 5% annually calculated on a state -wide basis. Source: Washington County Department of Assessment and Taxation. I m- - m w 1 ■_g 1 1 1 1 1 r 1 r it r 1 1 CITY OF TIGARD, OREGON PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS (Per $1,000 of Assessed Value) for the last ten fiscal years Washington Fiscal Washington County Year Beaverton Tigard Unified Tualatin County Portland Education Ended City of Washington Tigard School School Water Sewerage Rural Fire Rural Fire Community Service Other June 30 Tigard County District #23 District #48 District Agency District District #1 College District Municipalities 1978 $ .71 $1.36 $12.71 $15.75 $.29 $.75 $2.79 $ .22 $.58 $.41 $ .84 1979 .68 1.18 10.79 13.41 .33 .61 2.84 .25 .52 .37 .70 1980 .63 1.04 9.93 11.38 .30 .34 2.66 .22 .44 .30 .38 1981 .60 1.65 10.81 12.73 .34 .36 3.08 .30 .43 .28 .38 1982 1.19 4.23 11.34 14.95 .33 .35 2.86 .35 .58 .26 .80 1983 1.12 4.02 13.01 14.76 .51 .55 3.28 2.70 .57 .26 1.23 1984 1.18 1.88 12.67 13.97 .36 .61 3.15 2.70 .57 .26 1.48 1985 1.06 1.97 12.12 13.76 .37 .49 3.12 2.71 .57 .26 1.62 1986 1.35 1.93 11.55 13.25 .32 .36 2.60 2.65 .58 .25 1.48 v , 1987 1.94 2.82 11.36 13.40 .27 .25 2.99 2.61 .85 .25 1.66 01 Tax rates, expressed in dollars and cents per $1,000 of assessed value of taxable property in each taxing district, are required by the State Constitution to be uniform throughout the district. Taxes levied may be composed of three types of levies: (1) a base operating levy, (2) a special operating levy approved by the voters in the district and (3) a debt service levy. The operating levy may be increased annually to 106% of the highest levy in the prior three years. Levy increases are permitted in the year following expansion of a district's boundaries. Special operating levies may be approved for periods not exceeding 10 years. Each district with outstanding general obligation bonded debt is required to levy taxes sufficient, with other available funds, to meet principal and interest payments when due. Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the County. The County collects all taxes against property in the County (except assessments for improvements charged to benefited property) and distributes taxes collected at least monthly. No charges are made to the taxing districts for these services. Source: Washington County Department of Assessment and Taxation. 1 1 CITY OF TIGARD, OREGON SPECIAL ASSESSMENT COLLECTIONS for the last ten fiscal years II I/ Fiscal Year Current Ratio of Total Ended Assessments Assessments Collections Outstanding June 30 Due (1) Collected (2) to Amount Due Assessments II 1978 $ 25,000 $ 26,328 105.3% $ 63,741 1979 24,000 37,435 155.9 26,306 II 1980 29,000 19,374 66.8 224,101 1981 37,082 46,405 125.1 374,788 1982 32,000 61,068 190.8 2,067,732 II 1983 34,795 775,749 2,229.5 2,751,376 1984 174,464 469,969 269.4 2,417,184 1985 200,000 467,195 233.6 2,552,458 II 1986 250,000 361,268 144.5 1,945,334 1987 278,000 547,106 196.8 1,565,038 II (1) This amount is equal to the principal due on Bancroft improvement bonds. II (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. I Source: City assessment records. II II 11 11 II II 1 56 II 1 II 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 1 1 Gross General Ratio of I Fiscal Obligation Less Debt Net Bonded Year Bonded Service Net Debt to Net Bonded Ended Assessed Debt Out- Monies Bonded Assessed Debt Per June 30 Population Value standing Available Debt Value Capita II 1978 11,899 $266,097,883 $ 50,000 $ 22,445 $ 27,555 .01% $ 2.32 1979 13,697 325,258,171 29,000 24,601 4,399 .32 1980 14,855 420,475,002 20,000 27,698 (7,698) 1981 14,690 490,359,257 10,000 10,000 1982 * * * * * * * 1983 * * * * * * * II 1984 18,287 776,043,500 2,200,000 - 2,200,000 .28 120.30 1985 19,113 852,748,700 2,200,000 1,215 2,198,785 .26 115.04 1986 20,250 906,368,927 2,160,000 125,133 2,034,867 .22 100.49 II 1987 22,000 956,736,168 2,665,000 38,858 2,626,142 .27 119.37 11 Excludes Bancroft improvement bonds since these bonds are repaid from assessments against benefited property owners. II *There was no outstanding general obligation bonded debt in 1983 and 1984. II Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of Assessment and Taxation. 1 1 1 1 1 1 57 i 1 CITY OF TIGARD, OREGON COMPUTATION OF LEGAL DEBT MARGIN June 30, 1987 1 1 ORS 287.004 provides a debt limit of 3% of the true cash value of all taxable property within the City boundaries: True cash value (1985 -86) (1) $956,736,168 1 General obligation debt limit x3% 28,702,085 Gross bonded debt $5,144,000 11 Excludable debt - Bancroft improvement bonds (2,479,000) Debt subject to limitation 2,665,000 Legal debt margin - amount available for future indebtedness $ 26.037.085 1 (1) From Washington County Department of Assessment and Taxation. 1 1 1 1 1 1 1 1 58 I' II CITY OF TIGARD, OREGON COMPUTATION OF OVERLAPPING GENERAL OBLIGATION DEBT June 30, 1987 II II Percent Applicable Amount Appli- Net Debt Inside City cable Inside Jurisdiction Outstanding of Tigard City of Tigard II Port of Portland $134,685,000 2.63% $ 3,542,215 Washington County 10,070,000 9.88 1,057,160 11 Unified Sewerage Agency 25,868,000 12.04 3,114,507 U.S.A. Metzger 275,000 23.14 63,635 Metzger Water District 89,524 51.30 45,925 11 Metzger Combined Water District 5,312,944 33.77 1,794,181 Tigard Water District 1,245,000 72.84 906,858 Tualatin Rural Fire District 330,000 33.87 111,771 II Washington County Fire District #1 3,635,000 3.49 126,861 11, Tigard School District #23 -J 22,595,000 48.85 11,037,657 Beaverton School District #48 18,380,000 1.85 340,030 II $22.485,468 $22,140,800 II II Source: Oregon Municipal Debt Advisory Commission, as of September 30, 1987. II I/ II 11 II I/ II 59 II II CITY OF TIGARD, OREGON RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES for the last ten fiscal years II II Percent of Debt II Fiscal Year Total Total Service to Ended Debt General Total General June 30 Principal Interest Service Expenditures Expenditures II 1978 $ 49,000 $ 11,762 $ 60,762 $1,690,192 3.6% 1979 45,000 9,598 54,598 1,646,417 3.3 1980 38,000 12,348 50,348 2,214,887 2.3 II 1981 47,082 14,745 61,827 3,179,288 1.9 1982 42,000 33,425 75,425 3,614,109 2.1 1983 34,795 177,487 212,282 3,388,821 6.3 I 1984 174,464 275,081 449,545 4,116,810 10.9 1985 200,000 510,366 710,366 4,649,782 15.3 1986 290,000 507,154 797,154 7,066,768 11.3 II 1987 348,000 460,888 808,888 6,017,179 13.4 II Note: Includes Special Assessment Debt. II Source: Comprehensive Annual Financial Reports of the City. II 1 II II II 1 II 60 II II CITY OF TIGARD, OREGON PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS for the last ten fiscal years II II Commercial Residential Fiscal Year Construction(1) Construction(1) Ended Number of Number of Bank Deposits June 30 Permits Value Permits Value (in thousands)(2) 1978 106 $ 8,095,118 379 $15,031,551 $ 77,314 II 1979 69 10,877,291 657 24,000,387 90,305 1980 131 15,619,615 387 14,861,284 101,799 1981 131 8,013,746 289 18,343,452 101,520 I/ 1982 85 2,918,475 196 11,679,358 98,558 1983 102 3,940,579 244 13,281,694 102,314 1984 25 4,079,306 214 14,006,305 118,124 II 1985 33 9,890,600 231 16,948,338 129,152 1986 175 12,746,938 432 26,920,055 142,031 1987 169 10,717,219 442 44,412,105 175,236 I/ (1) From City of Tigard Building Department. I (2) From State of Oregon Department of Commerce, Division of Finance and Corporate Securities. II II II II II II I/ II 61 II 1 I CITY OF TIGARD, OREGON PRINCIPAL TAXPAYERS June 30, 1987 1 II Percentage of Total Assessed Assessed I Taxpayer Type of Business Valuation Valuation Pacific Realty Trust Real estate brokers $27,167,700 2.84% Nimbus Center Assoc. Real estate 14,134,100 1.48 il Glennbrook Associates Real estate 11,134,500 1.16 F.I.G. Holding Company Insurance 9,453,200 .99 II SunTex Park Company Business park 6,933,400 .72 Fred Meyer Shopping center 6,330,200 .64 Dana Corp. c/o Williams Air Control Manufacturing 5,839,700 .61 II The Coe Manufacturing Co. Manufacturing 5,390,600 .56 Sunset Terrace/Verdugo Parkview Apartments Apartments 4,919,900 .51 II Coast Finance Finance 4,877,000 .51 1 Source: Washington County Department of Assessment and Taxation. II 1 1 1 1 1 1 1 62 II 1 1 CITY OF TIGARD, OREGON DEMOGRAPHIC STATISTICS for the last ten fiscal years 1 II Assessed (2) Value Unemployment of Taxable (3) Rate I Fiscal Year (1) Property School (Portland Population Per Capita Enrollment Metro. Area) 1978 11,899 $22,363 5,643 5.2% II 1979 13,697 23,746 5,966 5.4 1980 14,855 28,305 6,256 6.3 1981 14,690 33,380 6,422 8.0 I 1982 17,700 34,902 6,491 N/A 1983 18,000 38,122 6,561 9.9(est.) 1984 18,287 42,436 6,358 8.1 II 1985 19,113 44,616 6,387 8.0 1986 20,250 44,759 6,474 9.0 1987 22,000 43,488 7,064 5.5 1 II Sources of information: (1) Portland State University, Population Research & Census Center. 1 (2) U. S. Bureau of Labor Statistics. (3) Tigard School District #23 -J. 1 Information regarding the Median Age and Education Level of the City population is not available. N/A - Not available. 1 1 1 1 1 1 63 1 II II CITY OF TIGARD, OREGON MISCELLANEOUS STATISTICAL DATA June 30, 1987 II I Date of incorporation 1961 Form of government Council - Mayor - Administrator Area 8.6 square miles Miles of streets 95.19 miles I Number of street lights 1,593 Police protection: Number of stations 1 II Number of policemen and officers 32 Elementary Junior High High School II Education (elementary only): Attendance centers 9 2 1 Number of classrooms 204 102 86 Number of teachers 234 99 102 11 Number of students 3,926 1,544 1,594 Sanitary sewers 92.82 miles 1 Building permits issued 611 permits were issued during fiscal year 1987 Recreation and culture: Number of parks Thirteen parks, totaling 117 acres I Number of libraries 1 library Number of volumes Approximately 40,700 volumes Employees: II Classified service 75 Unclassified 30 II Information obtained from the various departments of the City of Tigard, Oregon. II II II II II 64 II 1 1 1 1 1 ' AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 AUDIT COMMENTS AND DISCLOSURES II REQUIRED BY STATE REGULATIONS Oregon Administrative Rules 162 -10 -050 through 162 -10- 1 320 incorporate the Minimum Standards for Audits of Oregon Munic- ipal Corporations. These standards prescribed by the Secretary of II State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments and I disclosures required in audit reports. The required statements and schedules are set forth in the preceding sections of this report. Required comments and disclosures related to our examina- 1 tion of such statements and schedules are set forth following. II 1 II 1 1 1 II 1 65 1 II AUDIT COMMENTS AND DISCLOSURES 1 I. Internal Accounting Control: 1 We have examined the general purpose financial state- ' ments of City of Tigard, Oregon, for the year ended June 30, 1987, and have issued our report thereon dated September 11, 1987. As 1 part of our examination, we made a study and evaluation of the system of internal accounting control of City of Tigard, Oregon, to the extent we considered necessary to evaluate the system as II required by generally accepted auditing standards and the stan- dards for financial compliance audits contained in the U.S. II General Accounting Office Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. For the 1 purpose of this report, we have classified the significant inter- nal accounting controls in the following categories: ' Revenue /Receipts Purchasing /Disbursements II Payroll 1 Our study included an evaluation of the accounting controls over purchasing /disbursements. We did not evaluate the I accounting controls over revenue /receipts and payroll because we concluded that the audit could be performed more efficiently by expanding substantive tests, thus placing little reliance on the 1 internal control system. The purpose of our study and evaluation was to determine the nature, timing, and extent of the auditing II procedures necessary for expressing an opinion on the City's financial statements. Our study and evaluation was more limited II than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the II categories of controls identified above. 1 II 66 AUDIT COMMENTS AND DISCLOSURES, Continued I. Internal Accounting Control, Continued: The management of City of Tigard, Oregon, is responsible g Y g g ' for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judg- ments by management are required to assess the expected benefits ' and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not abso- lute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are exe- cuted in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study and evaluation made for the limited purpose ' described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of City of Tigard, Oregon, taken as a whole or on any of the categories of controls identified in the first paragraph. How- ever, our study and evaluation disclosed no condition that we believe to be a material weakness. This report is intended solely for the use of manage- !! ment, the State of Oregon Division of Audit and appropriate federal grantor agencies and should not be used for any other 67 AUDIT COMMENTS AND DISCLOSURES, Continued Internal Accountin g Control, Continued: purpose. This restriction is not intended to limit the distribu- tion of this report which, upon acceptance by the cognizant audit agency and other federal audit agencies, is a matter of public record. II. Other Comments and Disclosures: We have examined the combined financial statements of ' City of Tigard, Oregon as of and for the year ended June 30, 1987, and our report thereon is included on Page 1 of this report. Our examination was made in accordance with generally accepted audit- ing standards and the Minimum Standards for Audits of Oregon Municipal Corporations and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In connection with our examination, nothing came to our ' attention that caused us to believe the City was not in compliance with: ' ORS 294.305 to 294.520 in the preparation and adoption of its budget and tax levies for the fiscal years ended June 30, 1987 and June 30, 1988, • the legal requirements relating to debt, • the collateral requirements for public fund deposits ' specified in ORS Chapter 295, ' the appropriate law, rules, and regulations pertaining to programs funded wholly or partially by other govern- ' mental agencies, 68 ' AUDIT COMMENTS AND DISCLOSURES, Continued II. Other Comments and Disclosures, Continued: ' the cost accounting guidelines developed by the State of Oregon Executive Department with regard to the City's ' cost accounting system, ' ORS 294.035 in the investment of public moneys, ' ORS Chapter 279 in the awarding of public contracts and the construction of public improvements, ' However, it should be noted our examination was not directed primarily toward obtaining knowledge of noncompliance with such ' requirements. Additionally, we make the following other comments: ' We found the City's accounting records to be adequate for audit purposes. We reviewed the City's insurance and fidelity bond coverage at June 30, 1987 and ascertained such policies appeared to be in force. We are not competent by training to state whether the insurance policies cover- ing City -owned property in force at June 30, 1987, are adequate. COOPERS & LYBRAND By e3o4v A . John Dethman, a partner Portland, Oregon September 11, 1987 69