Resolution No. 92-05 CITY OF TIGARD,OREGON
RESOLUTION NO.92-05
A RESOLUTION OF THE CITY OF TIGARD,OREGON,AUTHORIZING T riE ISSUANCE AND SALE OF
LIMITED TAX GENERAL OBLIGATION BOND ANTICIPATION NOTES,SERIES 1992,IN AN AGGREGATE
MATURITY AMOUNT NOT TO EXCEED$2,890,000 FORTHE PURPOSE OF INTERIM FINANCING OF THE
1MpRO V OMEN—IS FOR TRE DARTW-OVT,!?Z lu%:ET I-^r...'e LM4PROVEM F N T DISTRICT;PRESCRIBING THE
FORM AND DETAIL OF SAID NOTES AND THE COVENANTS AND AGREEMENTS MADE BY THE CITY
TO FACILITATE AND PROTECT THE PAYMENT "HEREOF.
WHEREAS,pu suant to Ordinance No.88.08,passed by the City of Tigard,Oregon(the"City"),
on May 9, 1988,which amended Ordinance No. 84-17, passed by the City on April 9, 1984 (collectively the
"Dartmouth LID Ordinance"),the City approved the formation of a local improvement district(the"Dartmouth LID")
to provide certain improvements set forth in the Dartmouth LID Ordinance(the"Improvements");and
WHEREAS,pursuant to the Dartmouth LID Ordinance,upon completion of the Improvements the
City shat!prcpate the final a-ss:sment rolls for the improvements,send notice of such assessments along with notice
of a hearing on said proposed final assessments,and shall,after such hearing and after considering any comments on
said proposed final assessments, finally assess the properties benefitted by the Improvements and cause such final
assessments to be spread upon the benefitted properties;and
WHEREAS, the City will allow the benefitted property owners to finance the assessments against
their properties as provided in the Bancroft Bonding Act,ORS 223.205,et seq.,as amended,and the City intends to
issue special assessment bonds or limited tax special assessment bonds to the extent of applications for payment in
installments are received;and
WHEREAS, pursuant to ORS 287.502,et seq., any city authorized to issue bonds under ORS
223.205,et seq.,is authorized to issue bond anticipation notes to finance the construction of public improvements of
the character described in ORS 223.205;and
WHEREAS, the Improvements are of the character described in ORS 223.205;and
WHEREAS,as required under ORS 287.515(1),the City held a hearing on the Improvements on
March 28,1988,and the City Council,acting upon the request of an affected property owner,continued that hearing
to April 11,!988,has declared in the D'ati.urouth LID Ordinance its intention to construct the improvements;and
WHEREAS,the City intends to issue its Limited Tax General Obligation Bond Anticipation Notes,
Series 1992(the"Notes"),to provide the interim financing of the Improvements;and
WHEREAS, this Council finds that Notes issued pursuant to this authority do not exceed in the
aggregate the current estimated cost of the Improvements and that the maturity date of the Notes herein authorized
is not later than two years from the date of issuance of the Notes;
THE CITY OF TIGARD ORDAINS AS FOLLOWS:
1. Notes Authorized. The City Council authorizes the issuance of Limited Tax General Obligation
Bond Anticipation Notes, Series 1992 (the"Notes") in an aggregate maturity amount not to exceed$2,890,000
pursuant to ORS 287.502, et seq., as amended, for the purpose of funding the interim construction of the
Improvements and the costs of issuing these Notes. The Notes shall be dated the date of delivery or such other date
designated by the City Administrator or the Finance Director shall mature on February 1,1994,and shall bear interest
payable at maturity or prior redemption from their dated date at a rate which shall not exceed a net effective rate
Page I Resolution No.92- 05 -
of 4.9%. The Notes shall be in denominations as specified in consultation with the purchaser of the Notes.
The Notes shall be payable upon presentation and surrender thereof in lawful money of the United
Stares or Amctica by check or draft by United States National Bank of Oregon,Portland,Oregon,the City's paying
-ae nt,or its successor.
2. Redemption. The Notes are subiect to prior call and redemption in whole on August 1, 1993,and
the first day of each month thereafter until maturity in an amount equal to the accreted value of such Notes on the
redemption dates.
Unless waived by any registered owner of Notes to be redeemed, official notice of any such
redemption shall be given by the Registrar on behalf of the City by ma?ling a copy of an official redemption notice
by registered or certified mail not less than 15 days nor more than 30 days prior to the date fixed for redemption to
the registered owner of the Note or Notes to be redeemed at the address shown on the Register or at such other
address as is fumished in writing by such registered owner to the Registrar.
All official notices of redemption shall be dated and shall state:
(1) the redemption date,
(2) the accreted value of the Note on such redemption date,
(3) that on the redemption date the accreted value will become due and payable upon
each such Note called for redemption,and that interest thereon shall cease to accrue from and after said
date,and
/ (4) the place where such Notes are to be surrendered for payment of the accreted
l value,which place of payment shall be the principal corporate trust office of the Registrar.
The Registrar shall also cause to be published the official notice of redemption as required in ORS
287.508,as may be amended.
Prior to any redemption date,the City shall deposit with the Registrar an amount of money sufficient
to pay the accreted value of all the Notes which are to be redeemed on that date.
Official notice of redemption having been given as aforesaid,the Notes so to be redeemed shall,on
the redemption date,become due and payable at the accreted value therein specified,and from and after such dare
(unless the City shall default in the payment of the accreted value)such Notes shall cease to accrue interest. Upon
surrender of such Notes for redemption in accordance with such notice,such Notes shail be paid by the Registrar at
the accreted value. Notes which have been redeemed shall be canceled and destroyed by the Registrar and shall not
be reissued.
In addition to the foregoing notice, further notice shall be given as may be otherwise required by
law. No defect in said further notice nor any failure to give all or any portion of such further notice shall in any
manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed.
3. Security. The Notes are payable from proceeds of the assessment bonds to be sold upon completion
of the improvements and as otherwise provided in Section 4 hereof;provided that if the City is not able ro sell
assessment bonds for the Improvements,the City intends to issue limited tax assessment bonds for the Improvements
(the permanent financing in whichever form being collectively referred to herein as the"Bancroft Bonds"). The furl
faith and credit of the City and any taxes which the City may levy within the limitations of section 11 or 1lb,Article
XI of the Oregon Constitution are also pledged to the punctual payment of the Notes.
Page 2-Resolution No.92-D5
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4. Notes Sinking Fund. The Finance Director is directed to establish a sinking fund,commonly known
as the Bancroft Bonded Debt Sinking Fund-Series 1992 Notes(the"Fund").to which shall be deposited all proceeds
from the collection of unbonded assessments,the sale of improvement bonds pursuant to ORS 223,205,et seq.,and
the foreclosure of improvement liens for unbonded assessments realized from the Improvements with respect w such
Notes.
The deposits in the Fund shall be applied to the call and payment of such Notes and such funds
shall not be transferred,borrowed,diverted or used for any orher p,mnce a-n.i 6_.Aast._«e to held account t
nor and apply
such funds as provided in this section,the Finance Director shall be personally liable and shall also be liable on the
official bond to the holders of such Notes.
5. Sale of Notes. The City Manager or Finance Director is authorized to enter into a Purchase
Contract for the Notes with United States National Bank of Oregon,(the"Underwriter'). The Finance Director of
the City is hereby authorized and directed to prepare and execute the Notes in the manner hereinafter specified,to
cause the Notes to be registered and authenticated with United States National Bank of Oregon,Portland,Oregcn
(the"Registrar'),and to deliver the Notes to the Underwriter,upon payment of the purchase imce of$2,633,416.40.
6. Temporary Nores. The Notes herein authorized cony he issued as one or more t_ __ ,1.70«
which may be typewritten and exchanged for definitive Notes when available. r r
7. Form and Denomination. The Notes shall be executed on behalf of the City with the manual or
facsimile signature of the Finance Director. The Notes shall not be valid or prove obligatory,cr any purpose or be
entitled to any securityor benefit under this Resolution until the Certificate of Authentication thereon shall have been
dated and executed by manual signature of a duly authorized officer or employee of the Registrar. The Notes shall
be issued substantially in the form as set forth in Exhibit A hereto and in such names and such denominations as
requested by the Underwriter.
_ 8. Authentication.Registration and Transfer.
(1) All Notes shall be in registered form. The City hereby appoints United States
National Bank of Orcgon, Portland, Oregon, to serve as paying agent and registrar for the Notes (the
'Registrar'). A successor Registrar may be appointed for the Notes by ordinance or resolution of the Ciry.
The Registrar shall provide notice to Note owners of any change in the Registrar not later than the interest
payment date following the change in Registrar.
(2) No Note shall be entitled to any right or benefit under this Resolution unless it
shall have been authenticated by an authorized officer or employee of the Registrar. The Registrar shall
authenticate all Notes to be delivered at closing of this Note issue, and shall additionally authenticate all
Notes properly surrendered for exchange or transfer pursuant to this Resolution and any Note issued in lieu
of any mutilated,destroyed,lost or stolen Notes.
(3) The o-w:cship of all Notes shall be entered in the Note register maintained by
the Registrar;and the City and the Registrar may treat the person listed as owner in the Note register as the
owner of the Note for all purposes.
(4) The Notes(or accreted value in the event of redemption prior to maturity)shall
be payable upon maturity or earlier redemption at the office of the Registrar upon presentation and surrender
of the Note.
(5) Notes may be exchanged for an equal principal amount of Notes of the same
maturity which are in different denominations,and Notes may be transferred to other ovines if the Note
owner submits the following to the Registrar.
Page 3-Resolution No.92-05
(a) wri ten instructions for exchange or transfer satisfac',ory to the Registrar,
signed by the Note owner or his attorney in fact and guaranteed or witnessed in a manner
satisfactory to the Registrar;and
(b) the Notes to be exchanged or transferred.
(6) Each Note delivered under this Resolution upon transfer or exchange for,or in
lieu of,any other Note shall carry all the rights that were carried by such other Note. Tree Registrar shall
note the date of authentication on each Note. The date of authentication shall be the date on which the
Note owner's name is listed on the Register.
(7) For purposes of this Section,Notes shall be considered submitted to the Registrar
on the date the Registrar actually receives the materials described in subsection(5)of this Section 8;provided
they are received by noon,otherwise,they will be deemed received and registered the following business day.
(8) The City may alter these provisions regarding registration and transfer by mailing
notification of the altered provisions to all Note owners. The altered provisions shall take effect on the date
stated in the notice,which shall not be earlier than 45 days after notice is mailed.
9. Construction Account. The proceeds of the Notes hereby authorized shall be deposited in the
Improvements Construction Account c..-eated hereunder (the "Construction Account"). The amounts in the
Construction Account exceeding the insurance available from the Federal Deposit Insurance Corporation shall be
secured by the depository bank in accordance with state and federal law. Withdrawals from the Construction Account
shall be made only on cheeks signed by the Finance Director as authorized by the Council,and only for the purposes
for which the Notes were issued as specified in the estimate of costs,including costs of issuance of the Notes. The
City's share of any liquidated damages and other moneys paid by defaulting contractors or the sureties shall be
deposited in the Construction Account to assure completion of the Improvements. When the construction of the
Improvements has been completed,or all construction costs have been paid in full,any balance remaining in the
Construction Account shall be used to pay or apply on the payment of any such Notes as may thereafter Fall due,
or,if said Notes have been paid from the proceeds of the sale of its Bancroft Bonds,then the balance shall be applied
to the payment of the Bancroft Bonds in the manner prescribed by the resolution authorizing the Bancroft Bonds.
The City shall keep records of all expenditures from the Construction Account designating whether
the expenditure is for the Improvements or cost of issuance of the Notes.
Funds in the Construction Account may be used to pay contractors and vendors directly for the
Improvements,or paid directly to the City to reimburse the City for expenses already paid by the Ciry from finds
other than those held in the Construction Account. T ne City currently has expenses for which it will be reimbursed
at the closing of the Note issue.
10. Other Documents and Proceedings.The actions to date of the City Administrator,Finance Director
and other City staff are hereby ratified. The officers and officials of the City are hereby authorized and directed to
execute and carry out or cause to be carried out the obligations which are necessary or advisable in connection with
this Resolution and the issuance,sale and delivery of the Notes, including, but not limited to, agreements with
financial institutions to serve as paying agent and registrar,in accordance with Section 7 hereof. The officers and
officials of the City are further authorized and directed to prepare and furnish to the attorneys passing on the legality
of the Notes, certified copies of all proceedings, ordinances,resolutions and records and all such certificates and
affidavits and other instruments as may be required to evidence the legality and marketability of the Notes,and all
Page 4-Resolution No.92-05
certified copies,certificates,affidavits and other instrumens so furnished shall constitute representations of the City
t as to the correctness of all facts stated or recited therein.
11. Tax Covenants. The City cuveaants that it will not take any action,or fail to take any action,if
any such action or failure to take action would adversely affect the exclusion from gross income of the interest on
the Note-under Section 103 of the Internal Revenue Code of 1986,as amended(the"Code'). The City will not
directly or indirectly use or permit the use of any proceeds of the Notes or any other funds of the City,or take or omit
to take any action,that would cause the Notes to be"arbitrage bonds"within the meaning of Section 148(a)of the
Code. To that end,the City will comply with all requirements of Section 148 of the Code to the extent applicable
to the Notes.
12. Small Issuer Exemption from Bank Nondeducribility Restriction. The City hereby designates the
Notes as "qualified tax-exempt obligations" as defined in Section 265(b)(3)(B) of the Code. The aggregate face
amount of all tax-exempt obligations(excluding private activity bonds other than qualified 501(c)(3)bonds) issued
or to be issued by the City (and all subordinate entities thereof) during the calendar year 1991 is not reasonably
expected to exceed$10,000,000. The City hereby covenants that the City and all its subordinate entities will not
issue in excess x£$10,000,000 of qualified tax-exempt obligations(including the Notes but excluding private activity
bonds other than qualified 501(c)(3) bonds) during the calendar year 1992 without first obtaining an opinion of
nationally recognized counsel in the area of municipal finance that the designation of Notes as"qualified tax-exempt
obligations"will not be adversely affected.
13. Small Issuer Exemption from Rebate Requirements. In accordance with Section 148(f)(4)(C)of the
Code,the City represents and warrants that it is a governmental unit with general taxing powers;that the Notes are
not private activity bends as defined in Section 141 of the Code;that 95%or more of the net proceeds of the Mores
are to be used for the local government activities of the City and that the aggregate face amount of all tax-exempt
obligations (other than private activity bonds) issued by the City(and all subordinate entities)during tiie calendar
year 1992 is not reasonably expected to exceed$5,000,000.
lis. Approval of the Preliminary Official Statement. It is hereby found that the Preliminary Official
Statement,dated January 17,1992,attached hereto as Exhibit B,does not contain material which is misleading or
an untrue statement of material fact or omit to state any material fact necessary in order to make the statements
made therein, in light of the circumstances under which they were made,not misleading,with respect to matters
contained therein relating to the City. The use and public distribution of the Preliminary Official Statement is hereby
ratified,approved and confirmed.
15. Rep2rt of Financial Advisor. Prior to entering into the Purchase Contract with the Underwriter the
Finance Director shall obtain and review a report of the Financial Advisor to the City pursuant to ORS 287.028,as
amended,evaluating the terms of the Purchase Contract.
16. Effective Date of Resolution. This Resolution shall take effect and be in full force from and after
its passage and approval.
PASSED by the Council,with a quorum in attendance,this 28th day o1juary, 1992.
City of Tigard
ATTEST- acunc;l PreSiAeo+
Mec'order, City of Tigard
Page 5-Resolution No.92-05
re
C EXHIBIT A-FORM OF NOTE
R $
UNITED STATES OF AMERICA
CITY OF TIGARD
WASHINGTON COUNTY,OREGON
LIMITED TAX GENERAL OBLIGATION BOND ANTICIPATION NOTE
SERIES.92
APPROXIMATE YIELD
TO MATURITY: 4.500535% MA''URTIY DATE:February 1,1994 NOTE DATE:February 3,1992 CUSIP NUMBER-
Registered
UMBERRegistered Owner.
Maturity Amount:
THE CITY OF TIGARD,OREGON(the"City"),for value received,acknowledges itself indebted and hereby promises to
pay m the reglsrczed owner specified above,or registered avigns,the Maturity Amount specified above on the above Maturity Dam. The Now
(or Accreted Value of the Now in the event of redemption prior to the Maturity Dam)is payable upon presentation and surrender of this Now
rn the principal corporate trust office of United Steres National Bank of Oregon,Portland,Oregon,the City's paying agent and registrar(rhe
"Re,girtraz")in lawful money of d-.e United Stares of Aram... This Now,L,e"_no noted rate of interest. The M-w iiry Amount represents the
original principal amount of this Now,plus interest from the Now Dam on the Maturity Dam at the Approximate Yield to Maturity,all as shoals
above.
ADDITIONAL PROVISIONS OF THIS NOTE APPEAR ON THE REVERSE SIDE;THESE PROVISIONS HAVE 71-TE
SAME EFFECT AS IF THEY WERE PRINTED HEREIN.
- The Notes am issuable in the form of registered Notes without coupons in maturity amount denominations of$5,000 or any
Integral multiple thereof. The original principalamount of a Now with a Maturity Amount of$5,000 is$4,575.30. Notes may be exchanged for
Notes of the sune aggregate maturity amount,but different authorized denominations in the manner and subject to the conditions set forth in the
resolution of the Ciry authorizing the issuance of the Notes adopted on January 28,1992(the"Resolution").
Any transfer of this Note must be registered,as provided in the Resolution,upon the Now register kepi for that purpose at
the office of tine Registrar. The City and the Registrar may treat the person in whose name this Now is registered as its absolum owner for all
purposes,as provided in the Resolution.
The Now owner may exchange or aansfer any Now only by surrendering it,together with a wt!rren iz strument of e=hana
o r.is sat,".-uay w the Regiscar and duly executed by the registered owner or his duly authorized attorney,at the office of the
Registrar in the manner and subject m the conditions set forth in the Reso!udon.
This Now is one of the 1-1—ited Tax General Obligation Bond P ticiparion Notes,Series 1992,of the City,issued in the
aggregate maturity amount cf$2,890,000 and is issued by the City pursuant to Oregon Reviud Srarawe 287.502,et seq.,for the purpose of providing
construction financing for certain public improvements(tile"Improvements'). The Notes are payable from pro._eeds of^_.sem_----s..tt bonds h;.h
the City intends to issue upon completion of the Improvements and as otherwise,provided in the Resolution;provide that if the City is not able
to sell asscesment bonds for the Improvements,it intends to issue limited tax assessment bonds for the Improvements. The full faith and credit of
the City and any taxes which the City may levy within die limitations of section I I or I1b,Article X!of rhe Oregon Constitution are also pledged
m the punctual payment of principal of and intermsr o.s the Notes.The Finance D—tor is directed to establish a sinking fund,commonly known
as the Bancroft Bonded Debt Sinking,=und-Series 1992 Notes(the"Fund"),to which shall be deposited all proceeds from the collection of unbonded
asaesamentr,the sale of improvement bonds pursuant to ORS 223,205,et seq.,and the f losure of improvement limn for unbonded assessments
mal;+,et from die Improvements with respect to such Notes.Tice deposits in the Fund shall be applied to the call and payment of such Notes and
such hinds shall not be transferred,borrowed,diverted or used for any other purpose.
The Notes have been issued in full and complem compliance with he Constitution and laws of the Stam of Oregon and the
Chanter of the City.
The Notes are subject to optional redemption on August 1,1993,and the fust day of each month thereafter until maturity
Page 6-Resolution No.92-05
Awn M—'jw JUMM km
MM
in m amount equal to the aced value of such Notes on rhe redempdon dates(the"Accreted Value"). The following table Ibm rhe accr A
( value f each redemption dace of a Noce with a maturity amount of$5,CO0.M
1>Ate Accr<tod Val—
August 1,1993 $4,899.93
Sept caber 1,1993 4,908.10
October 1,1993 4,926.33
November 1, 44
1993 4,9 .63
December 1,1993 4,963.01
January 1.1994 4,981.45
February 1,1994 5,000.00
Unless waived by any regIsrered owner of Notes to be redeeared,offtcial nodrx of any ouch redempdon Sall be given by the
Ragistrar m behalf of rhe ary by mailing a copy of an official redemption nor;...by mgisrered or certified mail not leas than 15 days nor mare than
30 days prior to the data fixed for redempdon to rhe registered owner cf tl-Nom or Nom to be redeemed at the address shows on the Register
mat such other address as h fumished in writing by such registered oaxser w the Registrar.Notice of redemprion having been given as afareaaid,
the Norec so to be redeemed&hall,on the redemption dare,become due and payable at the Accrered Value drereln specificd,and from and aft-
such dam(unless the City shall default in the payment of the Accreted Value)such Nom shall cesse to accrue interest Upon surrender of such
Notes for tedemptim in accordance with such notice,mch Notes&hall be paid by the Regatrar at the A—red Value.
The Notes have been designated by the aty as"qualified tax-exempt obligations"for purpc+srs of Secrets 265(b)(3)of the
Internal Revenue Code of 1986.
TT IS HEREBY CERTIFIED,RECITED,AND DECLARED that all conditions,acts,and things required to exbr,to happen,
and to be performed preccdsmc w and in the issuance of this Nore have exf .have happened,and have been perf ed in due time,form and
manner as required by the Constitution and stature of the Stam of Oregon and the Charter of the City,and that the issue of which this Note
13 a part,and all other obligadens of such City,arc within every debt limitation and other limit prescribed by such Constitution and statures and
Charter of the City.
CITY OF MOARD,OREGON
Finance Director
THIS NOTE SHALL NOT BE VALID UNLESS
PROPERLY AUTHENTICATED BY THE
REGISTRAR IN THE SPACE INDICATED BELOW.
AUTHF*?TfCA'PON DATE.-
REGISTRARS CERTIFICATE OF AUTffENTICATION
This is one of the City's Limired
Tax General Obligation Bond Anticipation Nores,
:cries 1992,issued pursuant to the Tiesoludon
described herein.
United Stam National Bank of Oregon,as Re&=
By
Authorized Officer
Page 7 Resolution No.92-05
�. ASSIGNMENT
FOR VALUE RECEIVED,the undersigned sella,asalegv and transfers
please insert social security or other
identify number of assignee on above line.
the within Nox and does hereby irrevocably constitute and appoint as attorney to transfer this Note on the books kept Cor registration thereof with
the full power of aubstitutic-in the premises.
NOTICE:The signature to this assignment must correspond with the name of the registered ownerr as it appears upon the face of the
within Now in every particular,without alteration or enlargement or any change whatever.
NOTICE: Sig.,ntre(s)must be Sig.Guaranteed
guaranteed by a member of
the New York Stock Estrange
or a commercial bank or (Bank,Trust Company or Brokerage Finn)
trust company.
Aurhorirxd Officer
The following abbreviations,when used in the inscription on the face of the within Now,shall be construed as though they were written
out in full according to applicable laws or regulations.
TENCOM—tenants in—a—
TEN ENT--as renanm by the entireties
IT TEN --as joint ronano with right of au h crahip
and not as tenanffi in common
OREGON CUSTODIANS use the following.
CUST UL OREO
as custodian under the laws of Oregon for
MIN
(Minor's name)
Additional abbreviations may also be used thougb not in the list above.
Page 8-Resolution No.92-05
t.
d s w
1:1111 12:12 510 1:1 WMM amig
PRELIMINARY OFFICIAL STATEMENT DATED: January 17,1992
NEW ISSUE-NEGOTIATED RATING:Non-rated
In the opinion of Davis Wright Tremaine,Bond Counsel,under existing federal law and assuming compliance
with certain covenants, Original Issue Discount on the Notes is excludable from the gross income of the
owners of the Notes for federal income tax purposes and is not an item of tax preference for purposes of
determining alternative minimum taxable income for individuals and corporations under the Internal Revenue
Code of 1986,as amended(the"Code"), The Original Issue Discount on the Notes may,however,be subject
to other collateral tar consequences. In the opinion of Bond Counsel,Original Issue Discount on the Notes is
exempt from present personal income taxation by the State of Oregon. See'-fax Exemption"herein.
CITY OF T'IGARD, OREGON
0 $2,643,945.60*
0 0 LIMITED TAX GENERAL OBLIGATION
o BOND ANT'ICIPAT'ION NOTES
S o
(Dartmouth Street LID Project)
Series 1992
oc DATED:Date of Delivery DUE:February 1,1994
� o The Notes are registered notes in Maturity Amounts amounts of 55,000 or integral multiples thereof.
9 v Accrued Value on the Notes shall be payable only at maturity or prior redemption upon presentation and
o surrender thereof through the principal corporate trust offices of the registrar and paying agent of the City,
cW currently United States National Bank of Oregon,Portland,Oregon. r.
nNote proceeds will be used to pay for the costs of local improvement projects that will be assessed
o a against the benefited properties. The Notes are limited tax general obligations of the City and are secured by
•" _ and payable from the proceeds of permanent financing to be sold upon completion of the projects. Noses are
c secured by the full faith and credit of the City and any taxes which the City may levy within the limitation of
u section 11 or l lb.Article)U of the Oregon Constitution.
$ c
MATURITY SCHEDULE
N L
g Original Approximate Price
Maturity Principal Maturity Yield to Per$5,000
H
_.1 Psi1C t l&itII1 AMQU L WaLgrify At P�atLritp
February 1,1994 $2,643,945.60" $ %
8 Redemption Provision-The Notes are subject'n redemption on August 1,1993,and on the first day of each
month thereafter. See"Optional Redemption of the Notes"herein.
._ Bank Designation-These notes,combined with all other anticipated tax-exempt issues of the City,total less
than $10,000,000 for calendar year 1992. Therefore the City has designated the Notes as"qualified tax-
exempt obligations"pursuant to the Internal Revenue Code of 1986.
Legal Opinion-The Notes are offered when,as and if received by the Underwriter,subject to prior sale,or
withdrawal or modification of the offer without notice,and to the approval of legality by Davis Wright
Tremain,Portland Oregon,Bond Counsel. Certain legal matters will be passed upon for the City by the City
Attorney. Notes in definitive form will be available for delivery through the Depository Trust Company in
New York,New York on or about February 3.1992.
UNDERWRITER:
U.S. NA'TIONAI, BANK
"Approximate,subject to change.
TABLE OF CONTENTS
Page
DESCRIPTION OF SERIFS 1992 NOTES
Table 1: Table of Accreted Values Per a$5,000 Maturity Amount Note 3
Legal Issues Rela:ed to Dartmouth LID Project 4
TAX INFORMATION
Approved Legislation 6
Table 2: Representative Consoiidated Tax Rates 7
`ME LOCAL IMPRCVEMBNT PROJECT
General Improvement Project Procedures 8
The Project 8
Table 3: Sources and Uses of Funds 9
THE CITY OF TIGARD
Government 10
Table 4: City Council and Other Officials of the City 10
Administration 10
Staff I 1
Table 5: Bargaining Units and Contract Status 11
Table 6: Facilities i I
FINANCIAL INFORMATION
Bases of Accounting 12
Fiscal Year 12
Audits 12
Budgeting 12
Table 7: General Fund-Consecutive Balance Sheets 13
Table 8: General Fund-Consecutive Statement of Revenues and Expenditures 14
ECONOMIC AND DEMOGRAPHIC INFORMATION
Land Use Planning 15
Population 15
Employment 15
Economic Development 16
Utilities 16
Public Facilities 14
Transportation 17
Agriculture 17
Information Sources 18
Economic and Demographic Tables 18
Table 9: Population Estimates 18
Table 10: Average Annual Unemployment 19
Table 11: Labor Force 19
Table 12: Employment 20
Table 13: Gross Farm Sales 21
Rating 22
Legal Matters 22
Underwriting 22
Tax Exemption 22
Financial Advisor 23
Miscellaneous 23
Concluding Statement 23
APPENDIX A: June 30,1991 Audited Financial Statement(Partial)
APPENDIX B: Legal Opinion
loll -
OFFICIAL STATEMENT
OF THE
CITY OF TIGARD
OREGON
Relating to
$2,643,945.60-
Limited Tax General Obligation
Bond Anticip2tion Note;
Series 199'
The purpose of this Official Statement is to set forth certain information concerning the City of Tigard.Oregon
(the City),the Dartmouth LID Project(the Improvement Project),and the City's Bond Anticipation Notes,Series
1992,dated as of the date of delivery(the Notes). Capitalized terms not defined in this Official Statement have
the meanings as established in the Resolution. All quotations from and summaries and explanations of provisions
of the Resolution do not purport to be complete,and reference is made to the Resolution for full and complete
statements of its provisions. A copy of the Resolution is available upon request.
Description of the Series 1992 Notes
The Notes are limited tax general obligations of the City and are secured by and payable from the proceeds of
permanent financing to be sold upon completion of the projects and as further described herein.
The Notes are secured by the full faith and credit and any takes which the City may levy within the limitation of
section 11 or 1 ib,Article XI of the Oregon Constitution. The Accreted Value on the Notes will be paid at the
Maturity Date or a prior redemption by check or draft upon presentation and surrender of the Notes at the office of
the Paying Agent/Registrar,currently United States National Bank of Oregon,Portland,Oregon.
NATURE OF NOTES
The Notes are being issued as fully registered,deferred interest notes. The Notes will be dated as of the date of
delivery. Interest on the Notes shall be payable only at maturity or upon optional redemption,upon presentation
and surrender thereof on or after the maturity date at the principal corporate trust office of the Paying
Asent/Regist—ar,currently United States National Bank of Oregon,Portland,Oregon. The maturity amount is the
original principal amount plus accrued.deferred interest from the date of the issuance of the Notes to the maturity
date of the Notes.
Notes may be transferred upon the books of the Paying Agent/Registrar by the registered owners thereof,in person
or by a duly authorized attorney,upon surrender thereof at the office of the Paying Agent/Registrar,accompanied
by delivery of a written,duly executed instrument of transfer in a form approved by the Paying Agent/Registrar
and the City. Notes may be exchanged for Notes of other authorized denominations of the same tern and
aggregate maturity amount.
AUTHORIZATION
The Notes are being issued pursuant to the authority established in ORS 287.502,et seq.,which provides general
authority for cities to borrow money to provide interim financing for capital projects and Resolution No.
adopted by the City Council on
*Approximate,subject to change.
1
A ii 11,01 1
PAYMENT AND SECURITY FOR THE NOTES
The Notes are limited tax general obligations of the City. The full faith and credit of the City and any taxes which
t, the City may levy within the limitation of the Oregon Constitution are pledged to the punctual payment of the
Notes. The City has covenanted in the resolution to establish a fund to which shall be deposited all proceeds of
permanent Financing,the proceeds of unbonded assessments,the foreclosure of improvement liens for unbonded
assessments realized from the Improvement Project and any unspent note proceeds which may be available on the
maturity date of the Notes. The deposits in the fund shall be applied to the payment of such Notes and such funds
shall not be transferred,borrowed,diverted,or used for any other purpose.
It is currently the intent of the City,upon completion of the Improvement Project,to issue special assessment
bonds to provide long-term financing for the Improvement Project. Should the City be unable to market special
assessment bonds,the City will issue limited tax general obligation bonds to provide long-term financing for the
Improvement Project.
THE OPHONAL REDEMPTION OF THE NOTES
The Notes are subject to optional redemption prior to maturity on the first day of each month, commencing
August 1, 1993. All Notes called for redemption shall cease to accrue interest from the date of redemption
designated in the redemption notice. The amount payable upon redemption of any Note is an amount equal to the
Accreted Value of such Note on the applicable Redemption Date. The Redemption Price for a$5,000 Maturity
Amount Note on an Optional Redemption Date is set on the Table of Accreted Values. Notice of redemption will
be mailed to the registered owners of the Notes by First-class mail not less than thirty(30) days prior to the
intended redemption date.
INVESTOR SUITABILITY AND RISK
The Notes are not suitable for all investors. Investors should consult with qualified advisors to determine whether
the Notes are a suitable investment. The Notes may offer certain advantages over other types of taxable and tax-
exempt notes for investors seeking capital accumulation. However, the Notes are subject to certain risks and
consequences that ars different from other investments. Several important factors must be considered to
determine whether the Notes are suitable for a particular investor.
Some of the factors that should be considered are discussed below. The following discussion is not intended to be
a complete listing of all factors that should be considered.
After-Tax Yield
The value of an investment return may be affected by Federal. State. and local income taxes and other taxes.
Investments should be compared for their after-tax return to the investor.
Income Tax Treatment of Original Issue Discount
The Notes are being initially offered and sold to the public at a price which will result in original issue discount
for Federal income tax purposes. For a description of the Federal income tax treatment of original issue discount.
see"Tax Exemption--Tax Treatment of Original Issue Discount,"herein.
No Payment Prior to Maturity;Automatic Reinvestment
The Notes do not pay interest to the holder prior to maturity or redemption. Interest accrues and compounds
semiannually over the life of such notes. Effectively,the interest is automatically reinvested on a semiannual
basis at the approximate note yield to maturity. However,automatic reinvestment prevents an investor from
reinvesting interest earnings at a higher yield if interest rates are higher at the time of reinvestment. Also,if
money is needed for other uses,an investor cannot obtain any funds from a note prior to maturity or redemption i
( without selling the notes. See"Market Risk."
9
v
Market Busk
The original purchase price plias the accrued amount of the deferred interest Note will not necessarily equal the
market value of that deferred interest note at any time. The market value of a deferred interest note is determined
by a number of factors.including but not limited to the yield on that deferred interest note,yields available on
other taxable and tax-free investments and general market conditions.
Purchasers who may have to sell Notes prior to maturity should consider the special market risk associated with
Notes. The stated approximate yield on the Notes is determined under the assumption that the Notes will be held
to maturity or redemption. The yield could be affected if the Notes were sold prior to maturity or redemption.
The resale value of the Notes will be affected by market factors,particularly the prevailing interest rates at the
time of the sale.
If the deferred interest notes are resold when interest rates are higher than at the time the deferred interest rotes
are purchased,the investor'may realize a loss on the investment. Deferred interest notes have been subject to
greater market volatility than current interest notes. (This statement is based on historical market results and
should not be construed as a prediction of future market behavior.) A change in interest rates is likely to have a
greater impact on the deferred interest notes than on a traditional note. In any case,if an investor wishes to sell
the deferred interest notes prior to maturity,the investor should not necessarily expect to realize the original
purchase price plus the accrued amount.
ACCRETED VALUE OF THE NOTES
The following Table of Accreted Values sets_forth the Accreted Value for a$x,000 Maturity Amount mote as of
each date the notes are subject to optional redemption. The Accreted Value of a Note is an amount equal to the
Original Issue Price of such Note plus interest compounded semiannually(calculated on the basis of a 360-day
year comprised of 30-day months)from the issue date to the redemption date shown below at the approximate
yield on the Notes.
Table 1
City of Tigard
Table of Accreted Values
Per a$9,000 Maturity Amount Nate
Date Arcret!d Value
09-01-93
10-01-93
11-01-93
12-01-93
01-01-94
02-01-94 $5,000.00
The Accreted Value pf a Note does not necessarily equal the market value of that Note at any time. The market
value of a Note is determined by a number of factors,including but not limited to the yield on such a Note,the
creditworthiness of the City at the time in question,yields available on other investments,and general market
conditions.
PURPOSE OF THE NOTES
The Notes are being issued to provide funds for the interim financing of certain local improvements within the
Dartmouth Street Local Improvement District. For a further explanation of the purpose see"The Project"herein.
3
a RM
_.. . __ �. - - --- -
I
LEGAL ISSUES RELATED TO DAR'PMOUTII LID PROJECT
Opponents of the project have filed numerous lawsuits seeking to prevent the project. The litigation has been
filed in both Washington County Circuit Court, the Oregon Land Use Board of Appeals,and Marion County
Circuit Court.
Martin v.City of Tigard,78 Or App 181,714 P2d 1115(1986). This case was the Martins'initial
challenge to the LID. They claimed that the formation of the LID was illegal in a number of
respects. The trial court ruled against them and for the City on all claims. The Oregon Court of
Appeals found to the formation of the LID to be withnot McHt_.—d affirmed
all of the trial court's rulings. The Court of Appeals did discover a defect,not raised by the parties,
in that a small section of the proposed roadway was located outside of the LID boundaries,but the
cost of that section of the roadway was mistakenly included in the LID assessments. The Court of
Appeals remanded the LID to the City for reassessment. This case established that the City followed
proper procedures in forming the LID.
. Gordon R.Martin,et al.v.City of Tigard.LUBA No.88-034(September 19,1988). In this case,the
Martins,filed an appeal with the Land Use Board of Appeals,challenging the City's adoption of
Ordinance 88-08,which amended the 1984 ordinance that had established the LID. Ordinance 88-08
was adopted, In part, to correct the deficiency pointed out by the Court of Appeals in the case
discussed above.
LUBA agreed with the City,determining that Ordinance 88-08 was not a land use decision within
LUBA's jurisdiction. and, even if it were, the Martins' challenge was actually based upon a
superseded draft agreement between the City and the Oregon Department of Transportation,and the
Martins'had provided no basis for LUBA to review Ordinance 88-08.
. Gordon R.Martin,et al.v.City of Tigard, 101 Or App 676(1990),review denied 311 or 60(1990).
In this case the Martins challenged the validity of the local improvement district on the basis that
there had been"substantial changes"to the LID subsequent to its formation,thereby necessitating the
City Council to reinstitute the LID formation process. The trial court granted the City's motion for
summary judgement,the Court of Appeals affirmed the trial court without opinion,and the Oregon
Supreme Court denied review.
• Gordon R.Marlin v.State of Oregon,et al.Marion County Circuit Court No.91 C10659-1. This
case,brought by Gordon R. Martin against the State of Oregon and the City of Tigard, is now
pending in Marion County Circuit Court. The plaintiffs claim is based solely on the assertion that
the state,through ODOT,illegally renewed a road approach permit that had been granted to.the City
of Tigard. It is the plaintiffs position that because the renewal was effected after the period that the
initial permit had expired,the renewal itself was invalid and the City must reapply for a new permit.
Both the City and ODOT have argued to the court that OAR 734-50-050 provides explicit authority
for the permit extension. In his letter ruling of October 31,1991,Marion County Circuit Court Judge
Robert AdcConville determined that the extension would be found valid if ODOT's District Engineer
properly determined "whether in the interim since the issuance of the permit there has been a
substantial change in the circumstances and conditions which were material to the issuance of the
permit,and,if so,whether under such changed circumstances the continuation of the permit and the
extension of the completion date are proper."
The parties have submitted supplemental briefs on the issue raised by the judge,and oral argument
were presented on January 3rd. The City expects Judge McConville to render his ruling within the
month.
Should the courts ultimately rule that a new permit has to be issued, the City believes that they
would be successful in obtaining that permit from ODOT. If the intersection as designed is ruled not
safe,efficient,etc.,the City's response to such a finding would be to redesign the intersection as
necessary.
4
Potential Impacts Resulting From Litigation
The City has prevailed in the principal legal challenge to the Dartmouth Street Local Improvement Project. The
City fully expects that it will prevail in any additional legal proceedings. The City anticipates that it will b:able
to levy assessments to the benefiting properties and issue bonds in a timely manner.
i
5
TAX INFORMATION
APPROVED LEGISLATION
The 1991 Oregon Legislative Assembly adjourned on June 30, 1991,having spent much of the session addressing
Ballot Measure S. The key bill addressing the statutory implementation of Ballot Measure 5 is HB 2550,which
was approved by We Legislature and signed into law by the Governor on June 30. The law takes effect September
29,1991.
• Home Bill 2550-Prescribes the overall tax assessment,admiru ation and collection methods and
procedures to conform to the tax limitations and requirements of Ballot Measure 5. Defines key
terms including"Real Maiket Value," "Exempt Bonded Indebtedness," "Capital Construction"and
"Capital Improvements."
Section 210(14c)exempts general obligation indebtedness issued after November 6, 1990 which is
voter approved and used for capital construction or improvements.
Section 210(17-19)defines capital construction and improvements to include all activities related to
the construction,modification,replacement,repair,remodeling and renovation of structures which
have a useful life of over one year;the acquisition of land,or legal interest in land,in conjunction
with the capital construction of a structure;the acquisition and installation of machinery,furnishings
and equipment which have a life over one year;and activities related to capital construction such as
planning, design, studies, permits. and acquisition of financing, Structures are defined as any
temporary or permanent building or improvements to real property of any kind which is constructed
on or attached to real property,whether above,on or beneath the surface.
Section 210(13)defines actual cost to include all direct and indirect costs incurred by a local government to
deliver goods and services or undertake a capital construction project. Included but not limited in this definition
of actual cost are minimum and fixed charges, the ^osts of labor, materials, supplies, equipment, property
acquisition,fees,insurance,engineering,financing,debt service,payments into debt service reserve and coverage
accounts.
Since Ballot Measure 5 requires all local governments tb share the$10.00 per$1000 of RMV limit on taxable
property, the Legislature, in cooperation with representatives of local governments, developed a response to
mitigate the potential for competition among local governments for tax revenues. The product of this effort is
Senate Bill 1185(Chapter 396,1991 Laws)-a local government tax coordination bill:
• Senate Bill 1185 -Prescribes a tax consultation process which would require Iocal governments to
clarify and exchange information on their property tax needs and would require disclosure in voter
ballots if a proposed tax levy would reduce the tax collections of other focal governments.
The bill also requires a local government seeking voter approval to increase its tax levy to hold a
special public hearing on the effects of the tax proposal on other local government taxing districts.
SB 1185 specifies the development of a Tax Coordination Plan which would include:
1. A description of the current taxing authority of each local government.
2. Estimated revenue needed and estimated taxes to be levied for the coming year.
3. If estimated revenue requirements exceeds levying authority,an explanation of the decreased
revenue requirements and proposals for increased property taxes.
4. If estimated revenue requirements are lass than the levying authority,an explanation of the
decreased revenue requirements and proposals for reducing property taxes.
5. Options to achieve effective and efficient service delivery considering resource limitations.
SB 1185 requires that the ballot explanation of any measure proposing a new or increased tax shall contain a
statement that indicates whether the tax measure is subject to the tax limits of Ballot Measure 5,and whether the
proposed measure would reduce property tax collections for other units of local government.
6
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Table 2
CITY OF TIGARD
Representative Consolidated Tax Rates
Code Area 023.74
1990-91 Tax Rates 1991.92 Tax Rates
Operating Bonded Debt
Non-School Governments
Washington County 29470 1.3457 0,0601
Co-op Library 0.4440
Road improvements 0.6622
911 Emergency 0.3650
Water-Tigard 0.1133 0.0853
Bonds-Unified Sewer 0.2537 0.1898
TV Fire&Rescue 2.4067 1.9522 0.036.5
City of Tigard 2.7657 2.0976 0.6616
Port of Portland 0.3053 0.0861 0.1652
Metro Service District 0.2710 0.1174 0.1225
Tri-Met . Pr.iriunj 0 if)D
Subtotal 9.0627 7.0702 1.321
Schools
ESD-Washington 0.2521 0.2117
Portland Community College 0 a 136 0.8064
SD#23-Tigard 14.6006 14.LU-9 2.5874
15.7663 15.1570 2.5874
Total Tax Rate 24- = 22 3,90$4
Note: Beginning in fiscal year 1991-92,as a result of the passage of Ballot Measure 5, taxes imposed on
property are limited and separated into two categories: one which dedicates property tax revenues to
non-school governments and one.which dedicates property tax revenues to public school systems. See
"Tax Information"herein.
Source: Washington County Assessment and Tax Roll Summary
i
7
j
THE LOCAL IMPROVEMENT PROJECT
GENERAL IMPROVEMENT PROJECT PROCEDURES
Under their home rule authority,cities may prescribe their own methods of financing local improvements by
special assessment,or may utilize the procedures in ORS 223.387 to 223.399.
Local improvement projects are initiated either by petition of property owners or by resolution of the Council.
Projects must conform to those local improvements described in ORS 223.387 or in the City Charter. The
Col vwR sets iuo bora Idanes all the arca w rcceivc sv—ial benefits fmm the improvement projects; this area is
referred to as a local improvement district(LID). If the project is initiated by petition,the petition describes the
boundaries. The Council passes a resolution or ordinance declaring its intention to initiate the improvement
project and orders the preparation of an engineering report. This report describes the project,estimates the cost
and lists the affected properties. It may also specify the formula for apportioning the cost. Before the
improvement project is approved,a public notice and hearing is required(ORS 223.389). Notices are usually
mailed to the affected property owners as well as published or posted. At the hearing,owners may remonstrate
and,if a certain percentage remonstrate,the project may be terminated or delayed according to City charter or
ordinance provisions.
After the hearing,the Council makes the final decision.to proceed by cnacting an ordinance or resolution. The
City is then authorized to issue bond anticipation notes in the amount of the estimated cost of the improvements.
Thereafter,the assessed property owners may file litigation against the City regarding the assessment formula for
allocation of cost,but may not litigate the eventual assessment. When the estimated cost to the City is ascertained
on the basis of the Contract award,or after the work is done and the cost actually determined,the Council levies
assessments on each benefitted property by ordinance. The assessing ordinance creates a lien on each property.
When a property owner receives a Notice of Assessment,he or she has the option of making a cash payment in
C full or signing a"bond application. This"bond application" is a legal contract whereby the property owner
agrees to pay the assessment in installments. Principal is paid in equal semi-annual installments. There is no
prepayment penalty.
A delinquency in payment of assessments occurs one year after failure to make payments when due,and in that
event all unpaid installments,including interest,'shall become immediately due and payable,and the total amount
may be collected in any legal manner,including foreclosure of lien. ORS 223.270 and QRS 223.505 to 223.595
provide that one year from the date an assessment installment is delinquent, the City may collect unpaid
assessments by advertisement and sale in the manner provided by law for sale of real property on execution.
THE PROJECT
Located in an area known as the Tigard Triangle,the Dartmouth Street LID occupies approximately 60 acres at
the junctures of Oregon Highways 217 and 99. The project consists of a 44-foot wide paved and curbed street
within a 70-foot wide right of way extending approximately 3,250 feet from S.W.69th Avenue at its intersection
with the existing Dartmouth Street to Pacific Highway(Oregon 99)at its intersection with S.W.78th.Avenue. In
addition to the street improvements,the project w:ll also include right-of-way for a 200 foot street stub for a future
street extension to the south,street lights,storm drains,waterlines,sanitary sewers,and other underground utilities
as required to minimize future excavation. Utilities will be sized to serve the ultimate development of the Tigard
Triangle in conformance with existing planning for the area. Sanitary sewer service will be extended to serve
existing dwellings along the proposed Dartmouth Extension.
3
8
E81 iW Fi 3ff 6YW
ran --3m ..vr w:n. ..... _
'f here are 10 landholders within the LID. The following table summarizes the current land holdings.
Pmoeriv Ownri Ann_rox•&= 129 AV !
Alexander 0.49 .;282,600
Hedgepeth 0.53 53.750
Martin 26.49 413,060
New West Savings 16.91 1,351,630
Poiia:s Tim 4o9,2w
Probsfteld 0.85 379,960
Randall 5.94 574,890
Vasey 0.17 53,100
Western 2.00 67.5,700
Williams 1,433 75,270
TOW 62.00 $4,299,220
Super Valu Stores,doing business as CUB Foods,has recently purchased 28.35 acres including the properties of
New West Savings and other lands outside of the LID. CUB Foods paid approximately$2,300,000 for the New
West Savings land and an additional $2.865,000 for properties outside the LID. The company has started
demolition of dilapidated structures with plans to begin construction of the 200,000 square foot ccmmereial center
as soon as possible. CUB Foods plans to invest$3,000,000 in an 80,000 square foot grocery store with the
additional 120,000 square foot used by other commercial interests. They plan to submit site plans to the City by
the end of January. Western-Duff Tigard Partners,a California general partnership,has purchased or is currently
purchasing properties within the LID for the construction of a commercial center.
The specifications for project construction include the following:
Table 3
CITY OF TIGARD
Sources and Uses of Funds
Sources of Funds Amount
Note Proceeds $
Total sources of funds $
Uses of Funds
Construction Costs $
Administrative Costs
Underwriter's Discount
Cost of issuance
Total uses of funds $
i
2
9
THE CITY OF TIGARD
The City of Tigard has an estimated population of 31,000,was incorporated November 1961,and encompasses an
area of 10 square miles. The City is located in the southeasterly portion of Washington County,in the State of
Oregon,and is part of a rapidly developing suburban area within the Portland metropolitan area. The terrain is
gently roiling and hilly,with elevations from 110 to 710 feet above sea level. It is drained by the Tualatin River
and Fanno Creek and their tributaries. It was a farming area until the 1950s,but has grown as population and
industry have moved out along major state and federal highways heading south and west out of the metropolitan
center.
GOVERNMENT
The government of Tigard is vested in a Mayor and Council. The Council consists of four members who are
elected at-large biennially to four-year terms. The Mayor is elected for a two-year term. The Council appoints
the Municipal Judge,City Attorney and the City Administrator,who is responsible for the daily management of
the City and for the implementation of policy,which is set by the Mayor and City Council.
Table 4
Cr—I r OF T IGARD
City Council
and Other Officials of the City
Mayor: Gerald Edwards,Entrepreneur,has served on the Council since 1935. His mayoral term will expire
December 31,1994.
Service Term
Council Member Occupation Began Expires
Jack Schwab Attorney 10/08/91 04/14/92
Valerie Johnson Timber consultant 04/14/86 12/31/92
R.Joe Kasten Manager,Metallurgy&Quality Assurance,
Oregon Steel Mills 01/19/89 12/31/92
John Schwartz Director of Emergency Services.
Consolidated Fire&Rescue 01/01/87 12/31/94
City Administrator: Patrick J.Reilly
Finance Director: Wayne Lowry
Legal Counsel: O'Donnell,Ramis,Crew&Corrigan
Source: City of Tigard.
ADMINISTRATION
Patrick J.Reiliy,City Administrator,has been with the City since October 1988. Prior to that.Mr.Reilly was
City Manager for Gladstone.Missouri(1984-88),City Administrator for Clinton.Missouri(1980-84),and City
Administrator for Richmond Heights, Missouri (1978-80). He received a Master of Arts degree in political
science from the University of Missouri at St. Louis,and a Bachelor of Arts degree in political science from
Benedictine College at Atchison, Kansas. Mr. Reilly is a member of the International City Management
Association and has served as president of the Missouri City Managers Association.
Wayne Lowry, Finance Director, has been with the City since February 1985. He served as the City's
Accounting Manager through August 1986 and was then appointed Finance Director. Prior to his employment by
the City of Tigard, he served as an Internal Audit Manager for Orange County,California,for four and a half
years. Mr. Lowry received his Bachelor of Science degree?n business administration,with a concentration in
accounting,from Long Beach State University,Long Beach,California,and is a certified public accountant.
10
220
STAFF
As of June 1991.Utz City employed 171 people; 151 are full-time regular. 12 part-time regular'employees,and Y2
temporary employees. Listed in the table below are the bargaining units representing City employees.
Table 5
CITY OF TIGARD
Bargaining Units and Contract Status
Termination Date Status of
Employeeser of Negotiations
Employees of Current Contrast �
Collective Bargaining Unit 42 06E30/94 Settled
Tigard Police Officers Association
Tigard Municipal Employees Association; 06/30/92 Settled
ees Union 75
Oregon Public Employ
Source: City of Tigard.
Table 6
CITY OF TIGARD
Facilities
Insured
Year Built,Improved
Replacement Value
Facility $3,275,000
1985 250.040
Civic Center Building 1960 517,000
Civic Center Annex 1982 43,700
Senior Citizens Center 1969 60,000
Operations Office 1978 201,000
Public Works Annex 1960 72,500
Old City Hall 1969 123,800
Maintenance Building#2 1973,1979 71,500
Burnham police Building 1984
Public Works Pole Building 1969
Carpentry Shop $4,628,100
Tota!
Source: City of Tigard.
It
FINANCIAL INFORTvIATION
BASES OF ACCOUNTING d on the riety
tThe governmental fund tYPC5 ypes(enterprise and internal sere a funds))are accounted for utilizingfied lthe ccrualbasis Of ybasis of accounting.counting. The pThe C tys
ac:ounting practices conform to generally accepted accounting principles.
FISCAL YEAR: July 1 to June 30
AUDITS made of the
The Oregon Municipal Audit Law (ORS 297.405-2 mtao5n at requires
once ayearn Unlesstthe municipal y elects
accounts and financial affairs of every municipal of A
to have the audit performed by the State Division of Audits,the audit shall be made by accountants whase names
are included on the roster prepared by the State Board of Accountancy.
The City audits for the fiscal years 1983-84 through 1990-91 were performed by Coopers and Lybrand,CPAs.
t review the tables and offer no opinion regarding the tables. A complete
Portland,Oregon. The auditors did no
copy of the City's annual financial statements may be obtained from the City's Finance Department.
BUDGETINGudget which provides
The City prepares annual budgets in accordance with provisions of the Oregon of budgets. In'he months or
s+.andard procedures for the preparation.Presentation,administration and app supervision of the City's Budget
January through May of each year a proposed budget is prepared under supe These electors
it Committee. This committee consists of the Council and an equal number of electors of the City.
are appointed to the Committee. All members of the Budget Committee have an equal vote and final approval of
ff the budget. rtised
c meeting,
Prior to adoption,a proposed budget must be approved by the budget committee-
which explains the budget and rsi significant
the budget committee reviews the budget and the"budget message: P
changes in the local government`s financial posion. All budget committee meetings are op
tien to the public.
Following budget approval by the budget committee,another public hearing is held. A budget summary and
notice of hearing are published prior to the hearing. Publication is governed by strict requirements as to time and
mode.
n
A public hearing is then held after whng are
ich time the Council adopts the final budget, mai es aPPrep• o -—
declares tax levies. Prior to the
requirementslic rin to budgeime mode After thand ebudget e of ehearing, the uCou cal
Publication is governed bylimitations upon
considers the citizens testimony and, if necessary, alters the budget subject to statutory
increasing taxes or fund allocations without further publication and hearing.
he City's"Tax
An election must be held to approve the City's tax levy to the extent that the budget exceeds t ]imitation for
Base." A tax base is equal to 106 percent of the largest regular tax levy within the prior six Pe
the prior three years. The 1990-91 tax base for the City was $2.566.282• In addition. the City also levied
$1,316,563 for debt service. The 1991-92 tax base for the City is$3,580,449. The City will also levy$1,239.710
for debt service.The 1991-92 tax base was approved by voters in November,1990.
election,if one is required.the Council prepares a formal resolution which adopts the
After the operating levy
budget,authorizes taxes cl ct and sets out a schedule of appropriations. This resolution must be adopted
levied
not later than June 30. Two copies of the budget are submitted to the Assessors Office before July IS so that the
tax levy may be certified.
reared as needed during the fiscal year utilizing, transfers between the
� Supplemental budgets may bep P trtnontal budgets are•.arrsidered and adopted
appropriation categories which are approved by the charingsandnotices of hearings.
by the same process as the regular budget,including public
12
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lig
'fable 7
CITY OF TIGARD
General Fund
Consecutive Balance Sheets
As of June 30
Assets 1987 1988 1989 1990 199'
r
Cash and investments $1,091,865 $1,443,516 1,426,387 2.292,079 2,129,019
Accounts receivable 9,796 7,223 7?24 118,887 0
Property taxes receivable 178,761 230,543 265,045 244,687 245,530
Contracts receivable 57.769 43,326 28,884 14,443 0
Due from other funds 683.034 205,482 445,939 198,007 369.503
Deposits 0 0 49,90-- 0 0
Prepaid Insurance 0 0 77.729 77,750 74,630
Inventory of gasoline 1,507 8,892 10,286 15.6.59 2.4,331
Total assets -2MZMZ ,1 9 ;�1, 41 2-451,512 2 8
j'
Liabilities and fund equity
Liabilities
Accounts payable 349,852 255,371 302,874 448,206 475,066
Deposits 134,214 87,237 59,974 100,909 95,169
Due to other funds 13,000 13.000 16,000 0 220,458
Accounts receivable 1,004 0 0 0 - 0
Property taxes 152.232 202,745 219,206 195,654 186,990
Contracts receivable 57,769 43,326 28,884 14,443 0
Deferred compensation payable 31,744 __� 0 _0 _ 0
Total liabilities 739,815 601.679 626.438 759.212 977.683
Fund equity
Designated 0 0 0 15,659 98,961
Undesignated13 4.661 1 3 7 01.6R4.458 2,186.641 L766.364
Total fund unity and other credits 1.314 661. t 337'0'' l.6'.4,459 2,202.300 1,865.33
Total liabilities and fund equity 12,U2.732 $1.938,4R22. I1. 96 $2.461.512 $2,843,013
Source: Derived from annual financial statements,
13
'fable 8
CI'T'Y OF TIGARD
General Fund
Consecutive Statement of Revenues and Expenditures
As of June 30
Revenues 1957 1988 1989 1990 1991
Taxes $1,648,246 52,018,792 $2,234,650 $2,428,620 $2,554.087
Franchise fees 745.520 749.68+° 949,576 1,100,181 1,179,833
Licenses and pernuts 642,222 786,738 1.052,712 910.147 875,251
Intergovernnie.ttalrevenues 510.254 766,662 625,031 1,032,489 1,187,120
Charges for services 23,580 24,853 20.652 39,818 48.150
Fines and forieitu= 144,559 254.154 240,849 232,332 259.497
Ndiscelianeous 272.882 X14422 364.577 .54a.1!25 438,493
Total revenues —12&72M A21.1 Q5 .5 4$$,341 6 2ao�&2 42,431
i
Expenditures
Community services 2,367.972 2.998,366 3.264,482 3,504.825 4,312,354
Community development 848,023 994,641 1,146,773 1,366.032 1,610,172
Policy and administration 87,870 98.700 96.964 217,672 241.351
City-wide support functions 592,863 477.794 437,812 456.067 329,631
Capital projects 62.548 323.162 125.L61 ^ 4 3$5,W1'
Total expenditures 3.959 276 4 892.663 _5 4 19 5.70..SQ 6,879.401
Excess of revenues over
(under)expenditures 28,017 22,642 347.155 517,842 (336.970)
Total other financing
sources(uses) 250,574 0 0 0 0
Excess of revenues over
(under)expenditures
and other uses 278591 22.642 _42- 17,4�2 (33f2.970)
Beginning fund balance 1,036,070 1,314.661 1,337.123 1.684.458 2 202.3QQ
Ending fund balance $1.314.661 SitA,4 4S $ 2.300 .. 2 ,6 .330
Source: i?erived from annual financial statements.
14
ECONOMIC AND DEMOGRAPHIC INFORMATION
The City of Tigard,located in northwestern Oregon,in the Portland metropolitan area,began as a small town,
developed as a bedroom community, and now has a diverse economic base. Major employers include
manufacturers of machinery,f bricated metal,and wood products,ss ell as newspaper publishers and trucking.
LAND USE PLANNING
State law requires comprehensive land use planning to be accomplished at the city and county levels. To provide
common direction and copsisetency within each city a_^d county comprehensive plan, the Oregon —legislature
directed the Land Conservation and Development Commission(LCDC)to adopt state-wide planning goals and
guidelines. All zoning and development within a city or county must conform to the appropriate comprehensive
plan. Nineteers statewide planning goals have been adopted,dealing with matters which include:
Economy Air,Water and Land Resources Quality
Housing Agriculture Lands a
Urbanization Public Facilities
The Washington County comprehensive plan for the urban areas was adopted in June 1983 and acknowledged by
LCDC in October 1983. The rural portion was adopted in April 1982. After revision,it was acknowledged in
April 1984.
The City of Tigard submitted its plan to LCDC in 1983;it was acknowledged in 1984.
As part of a comprehensive plan,an urban growth boundary for the year 2000 must be established. This boundary
is designed to contain urban sprawl and should encompass adequate land in each zoning category to support
predicted population growth. In the Portland Metropolitan Area, the Metropolitan Service District has
responsibility for adoption, amendment and maintenance of a regional urban growth boundary. Local
comprehensive plans must conform to the regional urban growth boundary.
POPULATION
In 1970,nine years after its incorporation in 1961,the City's population was estimated at 5,302. Ten years later,it
had nearly tripled in size, to 14,900. Between 1980 and 1990, its population increased by 99 percent, to an
estimated 29,650,which was an annual growth rate in excess of 7 percent.
The population of Washington County increased from.247,800 in 1980 to 313 OW in 1990;this represents•� s a 2.4
.c
percent compounded annual rate of growth. The County is the fastest growing in the state.
EMPLOYMENT
The City is located in the Portland Primary Metropolitan Statistical Area (PMSA). Current employment and
unemployment data are available for the PMSA only,which consists of Multnomah,Washington,Clackamas and
Ya shill counties. However, until 1985,the Portland MSA included Clark County in Washington and did not
include Yamhill County. Thus,data before 1985 are not comparable with current data.
The major trend in the Portland economy since 1978 has been greater diversification. Employment in
manufacturing,construction. mining,and government is proportionately lower in Portland than in the United
States. But employment in trade,services,finance,insurance,real estate,and transportation is proportionately
greater in Portland than in the United States.
Between 1980 and 1990. employment in non-manufacturing increased by 9I.800, while employment in
manufacturing decreased by 10,100. In 1990 manufacturing employment accounted for 16.3 percent and non-
manufacturing 83.7 percent,of total wage and salary employment. In September 1901 the raw unemployment
rate for the PMSA was 4.8 percent.
15
SIM
Trade. Employment in wholesale and retail trade accounted for 25.9 percent of the jobs in the Portland PMSA in
I990,making this the largest employment sector.
! Strength in domestic warehousing and distribution owes to Portland's geographic location at the hub of interstate
freeways and railroads in the Pacific Northwest. International trade further enhances the domestic distribution
business in Portland. Being located along the Columbia River with a deep draft channel to the Pacific Ocean has
made Portland one of the West Coast's leaders in yearly export tonnage.
Service and Misceilaneous.This sector is the second largest in the Portland DMSA,with 26.0 percent of the jobs
in 1990,reflecting Portland's importance as a service center for the region.
Manufacturing. Employment in manufacturing accounted for 16.3 percent of the jobs in the Portland PMSA in
1990,making it the third largest sector. Decreases in the wood products and transportation equipment have been
offset by growth in the electrical equipment and instrument segments,although decreases have occurred in the
latter in the past year.
The sU:—'s economy is largely based on the lumber and wood products industry,which accounts for about 29.1
percent of the state's manufacturing employment,and on food and kindred projects,which accounts for about 11.2
percent. The Portland economy is less-dependent on these sectors(7.3 and 8.1 percent)because of its increasing
diversification. The four most important manufacturing sectors in the Portland PMSA are instruments and related
products,machinery,electronic and other electrical equipment,and metals.
Government_ The fourth largest sector in the Portland PMSA is government,with 13.2 percent of the jobs in
1990. Local government is the largest of the governmental employers,including school districts,counties,cities,
and special districts.
ECONOMIC DEVELOPMENT
As industrial and commercial land in Portland became increasingly scarce and costly,the greater supply of land in
the City of Tigard attracted a variety of commercial and industrial firms. Industrial development is concentrated
west of Interstate 5,along the Burlington Northern and Southern Pacific railroad tracks,and along Southwest 72nd
Avenue south of Highway 217. A number of business and industrial parks have ben developed in these and other
locations over the past few years.Commercial activity has developed in a strip along State Highway 99W
(Pacific Highway),with increasing development along Highway 217 and portions of Schoils Ferry Road. The
Dartmouth Street LID is l:,cated in the area designated as the Tigard Triangle at the intersection of Highway 99
and Highway 217. Note proceeds will be used to fund infrastructure improvernents for development of this prime
commercial property.
UTII.TTIES
Northwest Natural Gas supplies natural gas to the area: electricity is provided by Portland General Electric
Company;and General Telephone Company provides telephone service.
PUBLIC FACELITIFS
Sewer
The Unified Sewerage Agency provides treatment facilities for a 102-square-mile urban area of Washington
County, including most of the incorporated areas. The Agency, which was fomned in 1970, operates seven
treatment plants. The City owns and maintains its own collection system.
water
Residents of the City receive their water from the Tigard Water District and the Metzger Water District. Tigard
Water District draws its water from the Clackamas River,and from Buil Run Reservoir, through the City of
r Portland's system. The water source for Metzger Water District is also Bull Run Reservoir.
16
Fire Protection
Tualatin Valley Fire and Rescue was formed in early 1989 by a merger of Washington County Fire District#1,
and Tualatin Rural Fire Protection District,which has provided the City with fire protection.
Police
The City Poke Department has 42 sworn officers.6 records clerk and two other personnel.
Health Care
Meridian Park hospital is the closest major ha.._Ith care facility, located within minutes of downtown Tigard.
Many other health pre facilities can be found in the metropolitan area.including public health facilities,hospitals
and private clinics.
Education
Tigard School District No.23J,serving the Tigard and Tualatin area.enrolls approximately 6.400 students in nine
elementary schools,two junior high schools and one high school. Because several retirement communities are
located in the Tigard area,the School District makes extensive use of retired volunteers as classroom aides.
Additionally.the City overlaps approximately two percent of the Beaverton School District.
The main campus of Portland Community College is located four miles east of Tigard. Approximately 30,000
students are enrolled each term at this campus.
other litan
include the Oregon
ciences University.
Northwest Schon of law.Portlandeducation tlities in State University.Lewis and area
College.Reed College Sand numerous other
private colleges and training centers.
TRANSPORTATION
Major highways through the City include Interstate 5 which runs the length of the Pacific Coast,and State
Highways
gtropol
metr7 and 99W. The suburbanopolitan Street patterns have grown up on a crural base,resulting in some inconvenience and congestion.
as formed mainly along these highways west of the
i The southern terminus of the Interstate 205 Beltway is located two miles south of the City and provides access to
Clackamas County and East Multnomah County, as well as to Clark County, across the Columbia River in
Washington.
i
Rail freight service is provided in the City by the Burlington::o;.ltern and_�cam,
-±tFern Pacific Railroad.
Major airlines operate out of Portland International Airport, approximately 17 miles from the City. Air
transportation is also available at the Hillsboro Airport. 15 miles northwest of the City. These airpons are
operated by the Pon of Portland.
AGRICULTURE
Although over time agriculture has become less important as a source of employment in the County, it still
contributes to the economy of the County. The rich soil,abundant rainfall and mild climate of the Tualatin Valley
provide appropriate conditions for a variety of crops,including ornamental plants wheat berries and nuts. In
1990,gross farm sales in Washington County were over$151 million.
Although the Oregon wine industry is relatively young,the vineyards and wineries of Washington County have
grown rapidly since their beginnings in the 1970s. In 1984. 186 acres of grapes were bearing fruit:another 232
acres had been planted but had not reached fruiting maturity,according to the Oregon State Extension Service.
By 1986. the bearing acreage had increased to 422,with an additional 240 planted. In 1987 total acreage
increased to 739,with 280 harvested acres data for acres of bearing age are no longer available), and total
production of 1,118 tons of grapes. There are presently nine bonded wineries in the County,including the largest
(
berry wine producer in the State,Oak Knoll Winery of Hillsboro.
17
- - -- - -
MMI
i =ii -
The premier red wine in the County and State is pinot noir. The Washington County Wine Growers Association
has joined with the statewide organization in the promoting of local products both within Oregon and to the
/ broader national audience.
INFORMATION SOURCES
Historical data have hien collected from generally accepted standard--names.usually from public bodies. In
Oregon data is frequently available for cou.ities and also. to a somewhat lesser degree.for cities. Because the
City is located within the Portland Primary Metropolitan Statistical Area,this statement presents data for that area,
as well as for the County and the City when available.
ECONOMIC AND DEMOGRAPHIC TABLES
The tables that follow provide further information about the economic and demographic nature of the City.
Table 9
CITY OF TIGARD
Population Estimates
City of Percent 5y:.shington Percent Percent
Tigard Change County Change Oregon Chance
1940 - 39,194 -- 1,089,684
1950 - 61,269 56.3% 1,521.341 39.6%
1960 - 92.130 50.4 1,768.687 16.3
1970 5,302 -- 157,920 71.4 2,091,533 18.3
1979 14,200 167.8 233,150 47.6 2,584,350 23.6
1980 14.900 4.9 247,800 6.3 2,639.915 2.2
1981 15.750 5.7 255,000 2.9 2,660.735 0.8
1982 18.000 14.3 259,700 1.8 2.656.185 -0.8
1983 18,200 1.1 257,400 -0.9 2,635,000
18.450 1.4 260.200 1.1 2,660,000 0.9
1984 0 0.6
1985 20,250 9.8 268.000 3.0
_675.
800
1986 20.765 2.5 273,300 2.0 2.661,500 -0
1987 23.335 12.4 280.000 2.5 2,690.000 1.1
1.9
i9g8 25 5i0 9.3 287.000 2.5 2.741,000
1989 27,050 6.0 295,000 2.8 2,?91,000
1.8
1990 29.650 9.6 313,000 6.1 2,847,000 2.0
1980-90
Compounded
Annual Rate 2.36% 0.76%
of Change 7.12%
1985-90 -
Compounded
Annual Rate 3.15% 1.25%
of Change 7.9217o
Source: Under State law.the State Board of Higher Education must estimate annually the papulation of Oregon
cities and counties so that shared revenues may be properly apportioned. The Center for Population
/ Research and Census at Portland State University performs this statutory duty.
l
a8
ME
Table 10
WASHINGTON COUNTY
Portland P'MSA.
Average Annual Unemployment
As a Percent Of Labor Force
Oregon United States
Yrao portiand PRiSA 7.1
8.2
7.6
1980 7.9 9.7 9.7
1981 11.5
1982 10.1 10.8 9.5
9.8 .5
1983 8.0 9.4 7
1985 7.1 8.5 1994 7A 9.9 6 2
6.2
1987 5.3 4.7 5.8 5.5
5 3
1988 4.5 5.7 5.%
1989 4 2 5•S 6.4
1990 4.8 5.4
September 1991*
_ r- table on a monthly basis below the state level.
Sep-ember..r.mber 1991 figures are raw fates' Seasonally adjusted rates for Oregon and the U.S.were 5.9 and 6.7
lyent,respectively. Seasonally adjusted rains ars nal available
.,s.,..a-ment Division.Department of Human Resources.
Source: State of virago..-
Table 11
PORTLAND PMSAt
Labor Force 1980-90
By Place OfResidence
Unemployment as a Total
Resident Civilian Percent of Employment?-
Labor
mployment?
Labor Force Unemployment (000)
(�) Labor Force
Year (�) 586.1
624.9 38.8 6 3 607.1
1980 52A 592.6
1981 659.4 66.5 10.1
1982 659.1 9.9
555.4
60.1 552.4
1983 615.5 48.2 8.0 550.7
943
1984 544 0 7.4 564.3
1985 Son 7 7 1
1986
608.1 43.8 5.3 599.5
33.4 618.2
1987 632.9 649.0 33A 4.3 644.8
1988 675.0 30.2 4 2 655.2
1989 683.9 28.7
1990
%. The portland Primary Metropolitan Statistical Area(DMSA)include because of the inclusion of Yamhill
and Yamm
hil!counties. Data for 1985 are not comparable
to prior y
self employed,unpaid fariily workers,domestics,agricultural
County and the exclusion of Claris County.Washington.
2. Includes non-agricultural wage and salary,
workers and labor disputants. Employment Division.
Source: State of Oregon Department of Human Resources.
19
ow No A.9 Is No MUM A
Mai
Table 12
PORTLAND PMSA
Employment
Annual Averages and Percent Distribution by Industry
(By place of emplaynrent)
1480_ 1r�0
Average Percent Average Percent
Annual of Total Annual of Total
Total Wage&Salary 555.2 100.0% 636.8 100.056
Manufacturing total
114.2 20.6 - 104.1 16.3
Durable goods
Instruments&related products 19.6 3.5 10.4 1.6
Machinery 12.7 2.3 11.9 1.9
Electronicðer electrical equipment 7.3 1.3 12.0 1.4
Lumber&wood products 9 0 1 7.6 1.2
Metals 18.6 3.4 16.7 2.6
01 1.6 9.7 1.5
itanspuiiaui i-eq-1... G.4 12 6.8 1.1
Other durable goads
Non-durable goods 1 5 8.4 1.3
Food and kindred products 8.6
Printing and publishing 5.9 1.1 8.0 1.3
Paper and allied products 7.5 1.4 3.8 0.6
Other non-durable goods 9.5 1.7 8.8 1.4
Non-manufacturing total 441.0 79.4 532.8 83.7
Trade 142.0 25.6 164.8 25.9
Services and miscellaneous 111.0 20.0 165.5 26.0
Government 81.4 14.7 83.9 13.2
Finance,insurance and real estate 45.7 8.2 51.2 8.0
T2ncp4rP?3nn,communications 37.6 5.9
&Utilities 36.3 6.5
Construction 24.6 4.4 29.4 4.6
O.I
Mining and quarrying NA 0.0 0.5
Labor disputes 0.7 0.1
NOTES: Columns may not foot due to rounding.
The Portland Primary Metropolitan Statistical Area(PMSA)includes Clackamas.Multnomah.
Washington and Yamhill counties. Data for 1985 are not comparable to prior years because of the
inclusion of Yamhill County and the exclusion of Clark County,
Washington.
Source: State of Oregon Department of Human Resources.Employment Division.
20
Table 13
WASHINGTON COUNTY
Gross Fares sales
(in$000)
Year Crops uvestocklProducts Total Crops L.ivestocklProducts Total
1978 $41,415 $14,499 $55,914 $ 812,546 $ 444,495 $1,257,041
1980 57,490 18,738 76.228 1,135,190 607,147 1;742,337
1981 58,863 17,842 76,705 1,136,904 598,017 1,734,921
1982 65.287 19,549 84,836 1,076,495 656,993 1,733,488
1983 72,608 18,745 91,353 1,154,481 598,468 1,743,949
1984 74,219,506 93,786 1,178,167 639,792 1,817.959
1985 83,858 18,579 102,437 1,188,638 625,739 1,814,377
1986 91,216 19,897 111,113 166,969 661,385 1,928,354
1987 99,561 19229 118,790 1,333,924 680,650 2,014,57480
1988 121,001 17,669 138,670 1,560.,836 741,674 2,306,510
1989 124.409 18,928 143,337 1,767,943 76?,924 2,535,867
1990" 130,463 20,828 151,291 1,765,172 855,558 2,620,730
°FTeliminamy estimates.
Source: Extension Eccnomnic Information Office,Oregon State.University.
21 -
RATING
i
No rating for the Notes has been or will be applied for,
LEGAL MATT ET S
Davis Wright Tremain of pottland.Oregon,Bond Counsel for the City,will render an opinion with respect to the
validity of and tax exemption on the Notes. A copy of such opinion of Bond Counsel is included in Appendix B
of this Official Statement.
Cel—legal m� ;r" s are subject to the approval of the
dee t to the authorization,issuance and sale of the Note
City Attorney. r
UNDERWRITING
The Underwriter has agreed, subject to certain conditions. to purchase the Notes from the City less an
Underwriter's discount of S _from the sOrigi nal Principal
c'Amount
t set forth
or hon such he cover
ves are page of this
official Statement.The Underwriter will be obliged to pure."— --- Y
d.
TAX EXEMPTION
Tax Yreatment of Original Lssue Discount. The initial public offering price of the Notes is less than the
principal amount thereof payable at maturity. As a result,the Notes will be considered to be issued with original
issue discount. The difference between the initial public offering price of the Notes,as set forth on the cover page
of the official Statement(assuming it is the first ptic�:st which a substantial amount of Notes is sold),and the
amount payable at maturity of the Notes will be treated as"original issue discount." With respect to a taxpayer
who purchases a deferred interest note at the initial public offering price (assuming it is etre fast price at which a
substantial amount of the Notes is sold),and who holds such deferred interest note to maturity,the full amount of
original issue discount will constitute interest which is not includable in the gross income of
income tech
the owner of such
deferred interest note for Federal income tax purposes and such owner will not,under present
law,realize taxable capital gain upon payment of such deferred interest note upon maturity.
The original issue discount on each of the Notes is treated as accruing daily over the tern of such Notes on the
basis of a constant interest rate compounded at the end of each six-month period(or shorter period from the date
of or'ginal issue)ending February 1 and August 1(with straight line interpolation between compound dates).
Section 1288 of the Code provides,with respect to tax-exempt obligations such as the Notes,that the amount of
original issue discount accruing each period will be addedto the
he the Nbasis otesor the Notes.Including sales,
redemption.
tax basis will be used to determine taxable gain or loss upon disposition of
or payment at maturity). The owner of a deferred interest note who disposes of such deferred interest note prior to
maturity should consult his/her tax advisor as to the amount of original issue discount accrued over the period held
and the amount of taxable gain or loss upon the sale or other disposition of such deferred interest note prior to
maturity.
As described above regarding tax-exempt interest,a portion of the original issue discount that accrues in each year
to the owner of the deferred interest note may result in certain collateral Federal income tax consequences. In the
case of a corporation, such portion of the original issue discount will be included in the calculation of the
corporation's alternative minimum tax liability and the environmental tax liability. Corporate owners of the Notes
should be aware that the accrual of original issue discount in each year may result in an alternative minimum tax
liability or an environmental tax liability although the owners of such Notes will not receive a corresponding cash
payment until a later year.
22
---
Owners who purchase Notes in the initial public offering but a price differing from the first offering price at which
a substantial amount of the Notes was sold to the public should consult their own tax advisors with respect to the
tax consequences of the ownership of the Notes.
The Code contains certain provisions relating to the accrual of original issue diw.ount in the case of subsequent
purchasers of notes such as the Notes. Owners who do not purchase Notes in the initial public offering should
consult their own tax advisors with respect to the tax consequences of the ownership of the Notes.
The original issue discount on the Notes of a taxpayer who purchases Notes at the initial public offering price
(assurning it is tha fust price at which a substantial amount.of the Notes is sold)is exempt from present personal
irterstne t$xation by the Cewee of Cleo n,
Owners c,f the Notes should consult their own tax advisors with respect to the state,=d 1Mnl tax consequences of
owning the Nows. It is possible that under the applicable provisions governing the determination of state and
local income taxes,accrued interest on the Notes may be deemed to be received in the year of accrual even though
there will not be a corresponding cash payment until a later year.
FINANCIdkL ADVLSOP
The City has retained Public Financial Management.Inc.,Portland,Oregon,as financial advisor(the"Financial
Advisor")in connection with the Notes and with respect to the authorization and issuance of the Notes. The
Fnrancial Advisor is not obligated to undertake,and has not unde.-taken to make,an independent verification or to
assume responsibility for the accuracy,completeness, or fairness of the information contained in the Of ci:I
Statement Public Financial Management,Inc.,is an independent advisory Firm and is not engaged in the business
of underwriting, trading, or distributing municipal securities or other public securities. Public Financial
Management,Inc..is a wholly-owned subsidiary of Marine Midland Bank.N.A.,New York,New York.
MiSr—MLLAMEOUS
All quotations from and summaries and explanations of provisions of law herein do not purport to be complete,
and reference is made to said laws for full and complete statements of their provisions.
This Official Statement is nor to be construed as a contract or agreement between the City and the purchasers or
holders of any of the Notes. Any statements made in this Official Statement involving matters of opinion are
intended merely as opinion and not as representation of fact. The information and expressions of opinion herein
are subject to change without notice,and neither the delivery of this Official Statement nor any sale made
hereunder shall,under any circumstances,create any implication that there has been no change in the affairs of the
City or its agencies.since the date thereof.
CONCLUDING S'T'ATEMENT
The undersigned certifies that to the best of my knowledge and belief.(i)the Official Statement,both as of its date
and as of the date of delivery of the Notes,does net contain any untrue statement of a material fact or omit any
statens ent of a material fact necessary to make the statements herein,in the light of the circumstances under which
they were made,not misleading and(ii)between the date of the Official Statement and the date of delivery of the
Notes there has been no material change in the affairs(financial or others). financial condition,or results of
operations of the City except as set forth in or contemplated by the Official Statement.
CITY OF TIGA.RD,OREGON
By:
Finance Director
23
;�� via — —
MAS
_
Appendix A
JUNE Sit,1991
ALIIsiTED VINANCIAL STA T;:A9ENT(PARTIAL)
Cooftffers
rr'''''''������y� I cFnalgC OUAi�3�u�L��!!
Drand
Honorable Mayor and Council Marabers
city of Tigard
Tigard,Oregon
We have audised the general purpose fines claf statemants at the City of Tigard.Oregon as of and for the year
ended June 30. 1899.as fFsfoa in thu to bta cit wer'»s. Tamee_ono al rssrmse financial statements are the
responsibgity of itae City's managemam. Our responsibility is to express an opinion on these geneeai purpose
financial statements based on our audit.
We cnrra'u�.eu'Qu: nManee with 9eneritiy accepted auditing standards and the Minimum Standards for
Audits gar Oregon Mun.t"aoat Corparatbns- Ttoso starvda.as require Thai wit pian aeras payor t e..u:.»t_--Lt-inreasonable assurance about whether the general purpose financial statements are free Of material misstatement.
An audit Inoksdes tax:amining,on a test basis.evidence supponing the amounts and disclosures in the general
purpose financial stederrgros. An audit also includes assessing the accounting principles used and significant
estimates made by management.as well as evaluating tho overall general purpose financial statement pro santatlon.
We believe that our audit provides a reasonable basis for our Opinion.
` In our opinion,,the general purpose finandal statemerfts referred fo above present fairy,in all material respects.
the firancWl position of the City of Tigard.Oregon as of June 30,1991,and the results of its operations and cash
flows of ifs F-rtterprira Furtds for iha year than and®d in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forfring an opinion on the general purpose financial statements referred
to above. The mmt5ining,individual fund,and indiv;dual account anwp financial statements and other financial
scheduls5 listed as supplementary data in the table of contents are presented for purposes of additional analysis
and are rot a required part of the general purpose financial statements of the City a,Taganf,Oregon. Such
information has been subjected to the auditing procsdures applied in the audit at the geiaral purpose financial
statements arid,in our opinion,is fairly presented in all material respects in relation to the general purpose financial
statements taken as a whole.
The other data included in this repos,designated as the statistical section in the table of contents,has not been
audited by us arid,cccordingty,we express no opinion on such data.
COOPERS&LYBRAN�D,
John L.Dethman,a panner
Portland,Oregon
Sapternber 20.1991
�I
rm
Inn s , � Rjal
�
o -
ro
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Appendix B
Legal Opinion
Puauc RKANcE DEPARtMENT
[DATE]
CIT:'OF TIGARD
COUNTY OF WASHINGTON,STATE OF OREGON
LIMITED TAX GENERAL OBLIGATION BOND ANTICIPATION NOTES
SERIES 1992
WE HEREBY CERTIFY that we have examined a duly certified transcript of the
proceedings had by the City of Tigard,Oregon (the"City"), providing for the issuance of Limited Tax
General Obligation Bond Anticipation Notes, Series 1992 (the "Notes'), of the City in the aggregate
original principal amount of
DOLLARS{$ ). The Notes
are dated , 1992,and have been issued as deferred interest notes.
The Notes were authorized pursuant to ORS 287.502,et seq.,as amended,and the City's
Resolution No. , adopted January 1992 (the"Resolution"). The Notes have been issued to
provide interim fin-ancing of the improvements for the Dartmouth Street Local Improvement District (the
"Improvements') and to pay Note issuance costs.
The Notes have been designated by the City as qualified tax-exempt obligations for
purposes of Section 265(b)(3) of the Internal Revenue Code of 1986,as amended.
We have not been engaged or undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Notes(excepz to the extent,
if any,stated in the Official Statement),and we express no opinion relating thereto (excepting only the
matters set forth as our opinion in the Official Statement).
For purposes of rendering the opinion expressed in paragraphs 3 and 4, below,we have
assumed: (a) the Notes ha,,e been purchased by United States National Bank of Oregon (the
"Underwriter")in their capacity as a broker for contemporaneous sale to the public,and not for investment
or for their own account; (b) all of the Notes have been offered,and a substantial amount of the Notes
have been sold, to the general public for a cash price (and with no other consideration being included)
equal to the original principal amount of the Notes in arm's length transactions, subject only to the
delivery of the Notes to and acceptance of such Notes by the Underwriter;and(c)the initial offering this opinion,
g rice
of the Notes to the public is equal to the fair market value of the Notes. For the purposes
and brokers within the meaning of Section 1273(b)of the Internal
the term"public"excludes bond houses
E
[Date]
Page 2
Revemic Codec of 1.986 (the" ).
Based upon the foregoing,we are of the opinion,under existing law,as follows:
1. The City is duly created and validly existing as a body corporate and politic and public
irsmurrentality of the State of Oregon with the corporate power to pass the Resolution
authorizing the Notes (the"Resolution"),perform the agreements on its part contained
thert:in.and issue the Notes.
2. The Notes have been duly authorized,executed and deliver--d by the City pursuant to
ORS 287.502,et seq., and are valid and binding obligation-of the City, payable from
proceeds of the improvement bonds issued pursuant to ORS 223.205,et seq.,as amended
(the"Bancroft Bonds),to be sold upon completion of the Improvements and as otherwise
set forth in the Resolution. The full faith and credit of the City and any taxes which the
City may levy within the dimicatiors of section 11 and l lb, Article XI of the Oregon
Constitution are also pledged to the punctual payment of principal and iriter st or, the
Notes. The Finance Director is directed pursuant to the Resolution to establish the
Bancroft Bonded Debt Sinking Fund-Series 1991 Notes (the"Fund"), to which shall be
deposited all proceeds from the collection of unbonded assessments, the sale of the
Bancroft Bonds and the foreclosure of improvement liens for unbondcd assessments
realized from the Improvements with respect to the Notes.
3. The difference between(a)the Maturity Amount of the Notes and(b) the initial offering
price to the public of the Notes,constitutes"original issue discount"within the meaning
of Section 1273(a)of the Code. Original issue discount on the Notes which is properly
allocable to an owner of the Notes is excluded from gross income for federal income tax
purposes and is not an item of tax preference for purposes of the federal alternative
minimum tax imposed on individuals and corporations;it should be noted,however,that,
for the purpose of computing the alternative minimum tax imposed on corporations (as
defined for federal income tax purposes),such original issue discount is taken into account
in determining adjusted current earnings. The opinions set forth in the preceding sentence
are subject to the condition that the City comply with all requirements of the Internal
Revenue Code of 1986,as amended,that must be satisfied subsequent to the issuance of
the Notes in orderchat the original issue discount thereon be,or continue to be,excluded
from gross income for fedrral income tax purposes. The City has covenanted to comply
with each such requirement. Failure to comply with certain of such requirements may
cause the inclusion of the original issue discount in gross income for federal income tax
purposes to be retroactive to the date of issuance of the Notes. We express no opinion
regarding other federal tax consequences arising with respect to the Notes.
¢. The original issue discount on the Notes is exempt from Oregon personal income taxes.
It is to be understood that the rights of the holders of the Notes and the enforceability of
the Notes and the Resolution may be subject to bankruptcy,insolvency, reorganization,moratorium and
other similar laws affecting creditors'rights or contractual obligations heretofore or hereafter enacted to
the extent constitutionally applicable and that their enforcement may also be subject to the exercise of
[Date]
Page 3
judicial discretion in appropriate cases.
Sincerely,