CAFR Report FY 2013-2014 City of Tigard
Comprehensive Annual
Financial Report
FISCAL YEAR ENDED JUNE 30, 2014
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TIGARD
13125 SW Hall Boulevard I Tigard, OR 97223 I www.tigard-or.gov
City of Tigard
OREGON
Comprehensive Annual Financial Report
For fiscal year ended June 30, 2014
Prepared by:
Financial and Information Services Department
City of Tigard, Oregon
Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal 5
Certificate of Achievement for Excellence in Financial Reporting 13
Organization Chart 14
Principal Officials 15
FINANCIAL SECTION
Independent Auditors' Report 17
Management's Discussion and Analysis 21
Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Position 37
Statement of Activities 38
Fund Financial Statements
Major Governmental Funds:
Balance Sheet 39
Statement of Revenues, Expenditures,and Changes in Fund Balance 40
Reconciliation of the Statement of Revenues,Expenditures,and
Changes in Fund Balance to the Statement of Activities 41
Proprietary Funds:
Statement of Net Position 42
Statement of Revenues, Expenses,and Changes in Fund Net Position 43
Statement of Cash Flows 44
Pension Trust Fund:
Statement of Plan Net Position 45
Statement of Changes in Plan Net Position 45
Notes to Basic Financial Statements 47
Required Supplementary Information:
Schedules of Revenues and Expenditures—Budget and Actual:
General Fund 74
Gas Tax Fund 75
Notes to Required Supplemental Information—Budget to GAAP Reconciliation 76
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet 78
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances 79
Special Revenue Funds:
Combining Balance Sheet—Nonmajor Special Revenue Funds 81
Combining Statement of Revenues,Expenditures,and Changes in Fund Balance 82
Schedules of Revenues and Expenditures—Budget and Actual:
City Gas Tax Fund 83
Electrical Inspection Fund 84
Building Fund 85
Criminal Forfeiture Fund 86
Urban Forestry Fund 87
Library Fund 88
Debt Service Funds:
Combining Balance Sheet—Nonmajor Debt Service Funds 90
Combining Statement of Revenues,Expenditures,and Changes in Fund Balance 91
Schedules of Revenues and Expenditures—Budget and Actual:
Bancroft Bond Debt Service Fund 92
General Obligation Debt Service Fund 93
Urban Renewal Agency Debt Service Fund 94
1
City of Tigard, Oregon
Table of Contents, Continued
FINANCIAL SECTION, Continued
Other Supplementary Information,Continued:
Capital Projects Funds:
Combining Balance Sheet—Nonmajor Capital Projects Funds 96
Combining Statement of Revenues,Expenditures and
Changes in Fund Balances—Nonmajor Capital Projects Funds 97
Schedule of Revenues and Expenditures—Budget and Actual:
Facility Fund 98
Transportation Development Tax Fund 99
Traffic Impact Fee Fund 100
Underground Utility Fund 101
Street Maintenance Fee Fund 102
Parks Capital Fund 103
Parks Bond Fund 104
Parks SDC Fund 105
Transportation CIP Fund 106
Urban Renewal Agency Capital Projects Fund 107
Proprietary Funds:
Enterprise Funds:
Schedules of Revenues and Expenditures—Budget and Actual:
Sanitary Sewer Fund 109
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Sanitary Sewer Fund 110
Stormwater Fund 111
Water Quality and Quantity Fund 112
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Stormwater Funds 113
Water Fund 114
Water SDC Fund 115
Water CIP Fund 116
Water Debt Service Fund 117
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Water Funds 118
Reconciliation of Budgetary Fund Balances to Generally Accepted
Accounting Principles Basis Net Position 119
Internal Service Funds:
Combining Statement of Net Position 121
Combining Statement of Revenues,Expenses,and Changes in Fund Net Position 122
Combining Statement of Cash Flows 123
Schedules of Revenues and Expenditures—Budget and Actual:
Central Service Fund 124
Fleet/Property Management Fund 125
Insurance Fund 126
Other Schedules:
Schedule of Property Tax Transactions and Outstanding Balances 128
Schedule of Bond and Bond Interest Transactions 129
Schedule of Future Debt Service Requirements of
Bancroft Improvement Bonds 130
Schedule of Future Debt Service Requirements of
General Obligation Bonds 131
Schedule of Future Debt Service Requirements of
Water Revenue Bonds 132
Schedule of Future Debt Service Requirements of
Safe Drinking Water Revolving Loan Funds 133
2
City of Tigard, Oregon
Table of Contents, Continued
STATISTICAL SECTION
Net Position by Component 136
Changes in Net Position 138
Fund Balances of Governmental Funds 142
Changes in Fund Balances of Governmental Funds 143
Government—Wide Revenues 145
Government—Wide Expenses by Function 146
General Governmental Revenues by Sources 147
General Governmental Expenses by Function 148
Market Value and Assessed Value of Taxable Property 149
Property Tax Rates—Direct and Overlapping Governments 150
Principal Property Taxpayers 151
Property Tax Levies and Collections 152
Special Assessment Collection 153
Ratio of Annual Debt Service Expenditures for Long-Term Debt to
Total Governmental Expenditures 154
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt per Capita 155
Computation of Direct and Overlapping General Obligation Debt 156
Computation of Legal Debt Margin 157
Ratio Debt by Type 158
Computation of Water Revenue Bonds Debt Coverage 159
Demographics Statistics 160
Principal Employers 161
Property Value and Construction 162
Full-time Equivalent City Government Employees by Function 163
Operating Indicators by Function/Program 164
Capital Assets Statistics by Function 165
AUDIT COMMENTS AND DISCLOSURE REQUIREMENTS
Independent Auditor's Report Required by Oregon State Regulations 167
3
Introductory Section
4
IIII
TI.GARD
City of Tigard
December 16, 2014
Citizens of Tigard
Honorable Mayor
Members of the City Council
It is our pleasure to submit to you the Comprehensive Annual Financial Report of the City of Tigard,
Oregon,for the fiscal year ended June 30, 2014.
Oregon Revised Statutes (ORS) 297.425 requires that every municipal corporation publish within six
months of the close of each fiscal year a complete set of financial statements presented in conformity
with accounting principles generally accepted in the United States of America (GAAP) and audited in
accordance with auditing standards generally accepted in the United States of America by a firm of
licensed certified public accountants.
This report consists of management's representations concerning the finances of the city.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the city has established a comprehensive internal control framework that is designed
both to protect the city's assets from loss, theft, or misuse and to compile sufficient reliable information
for the preparation of the city's financial statements in conformity with GAAP. Because the cost of
internal controls should not outweigh their benefits, the city's comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatements. As management, we assert that, to the best of
our knowledge and belief,this financial report is complete and reliable in all material respects.
The city's financial statements were audited by Talbot, Korvola & Warwick, LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance
that the financial statements of the city for the fiscal year ended June 30, 2014, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by the management; and evaluating the overall financial statement
presentation. The independent auditors concluded, based upon the audit, that there was a reasonable
basis for rendering an unmodified opinion that the city's basic financial statements for the fiscal year
ended June 30, 2014, are fairly presented, in all material respects, in conformity with GAAP. The
independent auditor's report is included in the financial section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement the MD&A and should be read in conjunction with it. The
city's MD&A can be found immediately following the report of the independent auditors.
5
Profile of the Government
The City of Tigard is located in southeast Washington County, 15 minutes from downtown Portland,
Oregon and along major highways, Interstate 5 and Highway 217. The city is included in the Metro
urban growth boundary and Tigard's closest neighboring cities include Beaverton, Lake Oswego,
Tualatin, Durham, Portland, and King City. A state highway, 99W, runs north and south through the
eastern portion of the city and is a major transportation corridor leading to the City of Portland. There is
also a major greenway called Fanno Creek that connects neighborhoods to the natural environment and
several of the city's parks. The incorporated area of the city represents 12.2 square miles and has a
population of 50,444.The city has experienced a steady growth since its incorporation in 1961.
The city can extend its corporate limits by annexation which is permitted by state statute. In fiscal year
2014 the city annexed approximately 12.21 acres. In 2012 and 2013 the city annexed nearly 500 acres
of land west of the city that was largely farmland. Planning for development in that area, known as
River Terrace, began in earnest during fiscal year 2014 and is expected to be wrapped up by the end of
fiscal year 2015.
The city is governed by an elected mayor and four council members who comprise the City Council. The
city's charter established the Mayor/Council form of government. Each member of the City Council is
elected at-large to serve a four-year term. The mayor presides at council meetings and is elected at-
large for a four-year term. The mayor and council provide community leadership, develop policies to
guide the city in delivering services and achieving community goals, and encourage citizen awareness
and involvement.
The city council appoints a city manager, who is the chief administrative officer of the city. The city
manager is responsible for ensuring council policies are implemented using resources appropriated by
the council to achieve desired service results in the community.
The city provides a full range of municipal services. These services include police, municipal court,
community planning and development, parks, library, capital improvement planning, administration and
central services, street maintenance, water, and other general public works activities. The city owns and
maintains the wastewater and storm drainage system within the city limits under an agreement with
Clean Water Services. Fire protection is provided by Tualatin Valley Fire and Rescue.
The city maintains budgetary controls to ensure compliance with legal provisions in the annual
appropriated budget adopted by the City Council. Activities of all funds are included in the annual
adopted budget. The level of budgetary control (that is, the level at which expenditures cannot legally
exceed the appropriated amount) is established by program within each individual fund.
As demonstrated by the statements and schedules included in the financial section of this report, the
city continues meeting its responsibility for sound financial management.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the City of Tigard operates.
6
Local economy
The city's location in the Portland metropolitan area provides citizens with many diverse employment
opportunities. Unemployment data is reported specifically for Tigard as well as Washington County and
the Portland Metro area.
The chart below shows a six-year comparison of unemployment rates for the state and local areas as
well as the U.S. At 5.4 percent the City of Tigard is 0.7 percent lower than the Portland Metro area as a
whole and 1.4 percent lower than the State of Oregon at 6.8 percent.
14.00% --
12.00% -
10.00% -
■Oregon
8.00% - •US
6.00% - Ptld Metro
•Wash Co.
4.00% - ■Tigard
2.00% -
0.00%
2009 2010 2011 2012 2013 2014
Wholesale trade, retail trade, and the service industry all play a large role in Tigard's economy. Retail
trade has the most establishments; and the retail and service industries employ the most people. The
city has within its boundaries one of the largest shopping malls in the region, Washington Square. The
mall has five major department stores and more than 140 specialty shops that occupy over 1.3 million
square feet.
Summary of Economic Data
Number of Businesses,as of March 2014. 2,915
Median Household Income(estimated 2012) $62,576
Primary Economic Sector(receipts/sales) Wholesale Trade
General Fund Permanent Tax Rate $2.51310 per$1000
of assessed value
Total Assessed Value(2013) $5,444,702,020
7
Ten Largest Employers
(as of March 2014)
Employer Product or service Employment
Capital One Services Financial services 861
Tigard -Tualatin School District Local school district 779
Nordstrom Retail department store 422
Macy's Retail department store 404
Oregon Public Employees Retirement Public retirement system 396
Costco Wholesale Corporation Box store 273
City of Tigard Local government 257
Cheesecake Factory Restaurant 250
Home Depot Box store 241
Gerber Legendary Blades Manufacturing 232
Long-term financial planning
The city has developed a comprehensive long-term financial forecast every year since the 1980's. By
forecasting and anticipating financial trends, the city can develop strategies to respond to emerging
financial trends. The city forecasts operating fund revenues and expenditures over a five-year period.
The forecast is adjusted as each year's final results are known and as budgets are prepared for the
following year. In addition, the city also prepares a five-year Capital Improvement Plan (CIP) that is also
updated every year. The CIP is developed through a process separate from, but parallel to the budget
process. The impact on future operating and maintenance costs are projected from the CIP and then
incorporated in the long-term financial forecast.
Relevant financial policies
The City of Tigard has an important responsibility to its citizens to carefully account for public funds,
manage municipal finances wisely, and plan adequate funding of services and facilities desired and
needed by the public.
In support of this effort, the city has established a set of fiscal policies to ensure that the public's trust is
upheld. With such fiscal policies, the city has established the framework under which it will conduct its
fiscal affairs, ensuring that it is and will continue to be capable of funding and providing outstanding
local government services.
The goals of Tigard's fiscal policies are:
• To enhance the City Council's policy-making ability by providing accurate information on
program and operating costs.
• To assist sound management of the city government by providing accurate and timely
information on current and anticipated financial conditions.
• To provide sound principles to guide important decisions of the council and management which
have significant fiscal impact.
8
• To set forth operational principles, which minimize the cost and financial risk of the city's
government consistent with services, desired by the public.
• To employ revenue policies which prevent undue or unbalanced reliance on any one source,
distribute the cost of municipal services fairly, and provide adequate funds to operate desired
programs.
• To provide and maintain essential public facilities, utilities, infrastructure and capital equipment.
• To protect and enhance the city's credit rating.
• To insure that all surplus cash is prudently invested in accordance with the investment policy
adopted by the council to protect city funds and realize a reasonable rate of return.
Major initiatives
The Tigard City Council meets periodically to establish goals. Council goals comprise high-priority tasks
or programs that the City Council intends to complete or initiate during the year, though attainment of
these goals may take several years. The goals are based on the city's Vision Task Force goals,
departmental needs, and City Council priorities. In the goal setting meeting, the City Council reviews
information and develops its annual and long-term goals. Council goals set the priorities for city
government and are incorporated into departmental work plans. For 2014 council established goals for
the city as follows:
9
Goal/Milestone Estimated Timeline
Water
Lake Oswego-Tigard Water Partnership (LOTWP)
• Negotiate/proceed with water purchase from Lake Oswego Winter 2013
• Renegotiate LOTWP Intergovernmental Agreement (IGA) to reflect
structure and management post-construction (evaluate future of Early 2014
partnership roles)
• LOTWP bond sale (#2)
• Monitor progress of construction and budget; LOTWP projects Spring 2014
operational Through mid-2015
Develop Willamette River Water Sources
• Rewrite WRWC member contract
• Continue to consider other sources
• Develop "roadmap" for Tigard's future water decisions through Mid-2014
2026
Intergovernmental Water Board
• Work on next governance agreements with Tigard Water District,
Durham and King City End of 2014
Communicate with Tigard residents about rate impacts/outreach 2015 and beyond
regarding potential increases
River Terrace
Park land acquisition (strategy, funding, land dedication) Mid-2014
Complete Community Plan, zoning, adopted master plans June 2014
Building permits issued; development begins June 2014
Service delivery planning For 2014-15 budget
Tigard Triangle
Complete Triangle Strategic Plan Fall 2014
Adopt zoning, street and design standards December 2014
Begin implementing plan strategies December 2014
Southwest Corridor
Determine modes and alignment for study in federal EIS process Fall 2013
Determine regional route segments July 2014
Participate in federal EIS process (regional partner, financial) Mid-2014
Recreation (Evaluate options and resources to create a pilot recreation program)
Complete demand analysis for recreation opportunities Spring 2014
Compare recreation inventory with demand analysis to identify Spring 2014
needs/gaps
Council decision on city role (direct delivery provider, In time for 2014-15 budget
contract/partnerships with others, funding source)
Implement a new recreation effort based on role Fall 2014
io
Goal/Milestone Estimated Timeline
Economic Development
Develop and adopt strategic priorities, resources, design program End of 2013
Data collection and understanding the economic base Underway 2014
Community Engagement
Redesign community survey effort to include regular two-way December 2013
communication efforts (based on Fall, 2013 survey results)
Continue 3-4 quarterly open forums to engage During 2014
residents/neighborhood groups
Community education efforts; develop fiscal report card (Blue Ongoing in 2014
Ribbon Task Force recommendation)
Develop Tigard's community identity Ongoing in 2014
Downtown
Urban renewal ballot measure: Tigard voters clarify November 2013
authority/projects
Strategy for redevelopment of city-owned property December 2013
Resolve composition of CCDA December 2013
Main St./Green St. Construction January 2014
Continue Downtown Plaza Site acquisition and design approval Spring 2014
(contingent on site acquisition)
Continue Tigard St.Trail negotiation, design and development Through June 2014
Finalize downtown redevelopment opportunities June 2014
Advance options for rail crossing "trade" for Ash Avenue at-grade Through 2014
crossing
Explore Pacific Highway Urban Renewal District options Late 2014
Growth/Annexation
Successfully complete River Terrace Community Plan See above
Reconsider and agree to annexation policy: reauthorize financial February 2014
incentives as needed; consider islands and remainder of Bull
Mountain; incentives for voluntary annexation; timeline for
Washington County
Develop planning and timeline together with Washington County for Before June 2014
future annexations (Bull Mountain, Metzger)
Update annexation fiscal analysis from 2004 Begin mid-2014
Consider annexation of urban reserves for employment land Late 2014
Finance
Represent Tigard at the regional, state and federal level to advocate 1st and 2nd Q 2014
for tax reform and other funding opportunities
Review city facilities strategy and develop options for repair and Mid-2014
replacement
Seek voter-approved measure for major investment (capital, parks, Prepare for 2015
etc.)
With the passage of Tigard's Urban Renewal ballot measure, the city established a funding base to
implement the Tigard Downtown Improvement Plan. The formation of the City Center Development
Agency (CCDA, an urban renewal district) sends a clear message that the city is now financially
committed to carrying out its Downtown Plan and will be in a position to support investments there.
Although it will take time for tax revenues to accumulate under the tax increment financing process, it is
anticipated that enough funding will be available for$22 million in public improvements for downtown.
The implementation of all of the projects such as streets, parks, plazas, a public market and performing
arts center will take up to 20 years to accomplish but citizens are already seeing improvements. As
noted above, the City Council has added downtown redevelopment to their current goals. To further
that goal, and as noted in the subsequent event note,the CCDA borrowed $1.3 million to purchase a key
property in downtown Tigard in September 2014.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Tigard for its Comprehensive Annual Financial Report
(CAFR) for the fiscal year ended June 30, 2013. This was the 29th consecutive year that the city has
received this esteemed award. In order to be awarded a Certificate of Achievement, the government
published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program's requirements and we are submitting it to
the GFOA to determine its eligibility for another certificate.
In addition, the city also received the GFOA's Distinguished Budget Presentation Award for its annual
budget for fiscal year 2013-2014. This was the 26th consecutive year that the city has received this
prestigious award. In order to qualify for the Distinguished Budget Presentation Award, the city's
budget document was judged to be proficient in several categories, including as a policy document, a
financial plan, an operations guide, and a communications device. The city has submitted its fiscal year
2014-2015 budget document and believes that it meets the Distinguished Budget Presentation Award's
requirements.
The preparation of this report was made possible by the dedicated service of the staff of the Financial
and Information Services department. Each member of the department has our sincere appreciation for
the contributions made in the preparation of this report. Special recognition should be given to the
financial operations staff for their work in preparing this document. Credit also must be given to the
mayor and City Council for their unfailing support for maintaining the highest standards of
professionalism in the management of the City of Tigard's finances.
Respectfully submitted,
Marty Wine To LaFrance
City Manager Director of Financial and
Information Services
12
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tigard
Oregon
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2013
Executive Director/CEO
13
Citywide Organization Chart
by program
CITIZENS OF TIGARD
MAYOR& CITY COUNCIL
CITY MANAGER CITY ATTORNEY
I
COMMUNITY 111 COMMUNITY POLICY&
SERVICES WORKS DEVELOPME ` ADMINISTRATION
II
POLICE LIBRARY Administration Adminis'trati CITY FINANCE
ADMIN & INFO
SERVICES
Public Works—I Building
Administration Administration Engineering
Mayor
II and Council Administration
Community
Operations Readers' Facilitiell Planning
Services City
Management Financial
11 Operations
Support Services Fleet Development
Technical Services
Services
Human
Resources Utility Billing
Parks/Grounds
Economic
Circulation Development
Risk Information
Sanitary Sewer Management Technology
Streets Design and Contracts and
AI Communications Purchasing
hi Storm Water I
Municipal Court
\Nate
City Recorder
/Records
14
City of Tigard
OREGON
PRINCIPAL OFFICIALS AS OF JUNE 30, 2014
ELECTED OFFICIALS
Name Term Expires
Mayor John Cook December 31, 2014
Councilor Gretchen Buehner December 31, 2014
Councilor Marland Henderson December 31, 2016
Councilor Jason Snider December 31, 2016
Councilor Mark Woodard December 31, 2014
APPOINTED OFFICIALS
Name
Marty Wine
City Manager
Toby La France
Director of Financial
and Information
Services
All may be reached at:
13125 SW Hall Boulevard
Tigard, OR 97223
LEGAL COUNSEL
Jordan Ramis PC
Two Centerpointe Drive, 6th Floor
Lake Oswego, OR 97035
15
Financial Section
16
ik INDEPENDENT AUDITOR'S REPORT
0 City Council
City of Tigard
Tigard, Oregon
, REPORT ON THE FINANCIAL STATEMENTS
TKIII We have audited the accompanying financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining
fund information of the City of Tigard, Oregon (the City) as of and for the year ended
June 30, 2014, and the related notes to the financial statements, which collectively
Talbot,Korvola comprise the City's basic financial statements as listed in the Table of Contents.
a Warwick,LIP
Certified Public Accountants MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
r.Consultants
Management is responsible for the preparation and fair presentation of these
ACHIEVE MORE financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of
4800 Meadows Road,Suite 200 financial statements that are free from material misstatement, whether due to fraud
Lake Oswego,Oregon 91035-4293
or error.
P 503.274.2849
P503.274.2853 AUDITOR'S RESPONSIBILITY
www.tkw.com
Our responsibility is to express opinions on these financial statements based on our
audit. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.
A ndepeedandy O' c vernher
MCGLADREY ALLIANCE McGladrey
The McGladrey Alliance is a premier affiliation of independent accounting and 17nsulting firms. The McGladrey Alliance member firms maintain their name,
autonomy and independence and are responsible for their own client fee arrangements,delivery of services and maintenance of client relationships.
City Council
City of Tigard, Oregon
Page 2
OPINIONS
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City, as of June 30, 2014, and
the respective changes in financial position and, where applicable, cash flows thereof for the
year then ended in accordance with accounting principles generally accepted in the United
States of America.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that
Management's Discussion and Analysis, as listed in the Table of Contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying budgetary
comparison information for the General Fund and Gas Tax Fund, as listed in the Table of
Contents as Required Supplementary Information, is not a required part of the basic financial
statements and is presented for purposes of additional analysis, and is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the basic
financial statements. This information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the Required Supplementary
Information is fairly stated, in all material respects, in relation to the basic financial statements
as a whole.
18
City Council
City of Tigard, Oregon
Page 3
OTHER MATTERS (Continued)
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The other schedules, as listed in the
Table of Contents as Other Supplementary Information, are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The Other Supplementary
Information is the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the Other Supplementary Information is fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections, as listed in the Table of Contents, have not been
subjected to the auditing procedures applied in the audit of the basic financial statements, and
accordingly, we do not express an opinion or provide any assurance on them.
OTHER REPORTING REQUIRED BY OREGON MINIMUM STANDARDS
In accordance with Minimum Standards for Audits of Oregon Municipal Corporations, we have
also issued our report dated December 16, 2014, on our consideration of the City's compliance
with certain provisions of laws and regulations, including the provisions of Oregon Revised
Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe
the scope of our testing of compliance and the results of that testing and not to provide an
opinion on compliance.
TALBOT, KORVOLA & WARWICK, LLP
By:
Timothy R. illette, P rtner
Lake Oswego, Oregon
December 16, 2014
19
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20
Management's Discussion and Analysis
As management of the City of Tigard, we offer readers this narrative overview and analysis of the financial activities of
the City of Tigard for the fiscal year ended June 30, 2014. It focuses on significant financial issues, major financial
activities, and resulting changes in financial positions, as well as economic factors affecting the city. This Management's
Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the date
of the independent auditor's report.
We encourage readers to consider the information presented here in conjunction with the transmittal letter at the front
of this report and the city's financial statements which follow this discussion and analysis.
Financial Highlights
➢ The assets of the city exceeded its liabilities at the close of the most recent fiscal year by $319.7 million (net
position). Of this amount, $33.4 million (unrestricted net position) may be used to meet the city's ongoing
obligations to citizens and creditors.
➢ The city's net position increased $9.9 million over the course of this year's operations. Within this total the net
position of our business-type activities increased by $4.6 million or 4.5 percent, and net position of our
governmental activities increased by$5.3 million or 2.6 percent.
➢ During the fiscal year, the city generated $39.8 million in taxes, charges for services, and other revenues for
governmental programs while incurring expenses from governmental activities totaling $35.5 million, for an
increase in net position of$5.3 million.
➢ In the city's business-type activities, revenues increased by about $1.2 million, while expenses increased by
about $0.2 million. The city increased water rates by 14 percent, sewer rates by 3 percent and stormwater fees
by 8.7 percent.
➢ As of the close of fiscal year 2014, the city's governmental funds reported combined ending fund balances of
$29.1 million, virtually the same as the prior year. During fiscal year 2013-2014 the city worked on getting
revenues to align with expenditures in the governmental funds.
➢ At the end of the fiscal year, unassigned fund balance for the General Fund was $11.5 million, up $1.8 million
over the prior year. The fund balance in the General Fund is approaching its pre-recession level.
➢ The city's total debt decreased by $2.8 million during fiscal year 2014. The city paid $2.8 million of normal
annual debt service payments on the general obligation bonds, long-term notes, and Bancroft improvement
bonds.
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Overview of the Financial Statements
In addition to this discussion and analysis, the financial section of this annual report contains the basic financial
statements, required supplementary information, and the combining statements of the non-major funds and schedules
demonstrating legal compliance.
The basic financial statements also include notes that explain the information in the financial statements and provide
more details. The statements are followed by the required supplementary information section that supports the
information in the financial statements.
Required Elements of the
Comprehensive Annual Financial Report
MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL STATEMENTS I
I
GOVERNMENT-WIDE FUND
(full-accrual)
Governmental(modified accrual)
Governmental Activities Proprietary(full accrual)
Business-type Activities Fiduciary(full accrual)
NOTES TO BASIC FINANCIAL STATEMENTS I
REQUIRED SUPPLEMENTARY INFORMATION
(other than MD&A)
OTHER SUPPLEMENTARY INFORMATION &SCHEDULES I
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Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the city's finances,
in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the city's assets and liabilities, with the difference between
the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the city is improving or deteriorating.
The Statement of Activities presents information showing how the city's net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will result in cash flows in a future fiscal period. Examples of such items include earned, but uncollected
property taxes, and earned, but unused compensated absences.
Both of the government-wide financial statements distinguish functions of the city that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or
a significant portion of their costs through user fees and charges (business-type activities).
The governmental activities of the city include the following:
> Community services, police, library, and social services
> Public works, including parks and recreation
> Community development, current and long-range planning
> Policy and administration
The business-type activities of the city include the following:
> Sanitary sewer
> Stormwater
> Water
The government-wide financial statements can be found on pages 37-38 of this report.
Fund Financial Statements are designed to display compliance with finance-related legal requirements demonstrated by
the use of fund accounting. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities and objectives. The funds of the city can be divided into the following
categories: governmental funds, proprietary funds, and a fiduciary fund.
Governmental Funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of available resources, as well as on balances of available
resources at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial
capability.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government-wide financial statements. By doing so, readers may better understand the long-term
impact of the city's near-term financing decisions. Both the governmental fund Balance Sheet and the governmental
fund Statement of Revenues, Expenditures, and Changes in Fund Balance provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
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The city maintains 21 individual governmental funds. Information is presented separately in the governmental fund
Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances for those funds that are
considered significant (major) to the city taken as a whole. These financial statements report two major funds: General
Fund and Gas Tax Fund. Data from the other 19 governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining
statements elsewhere in this report.
The city adopts an annual appropriated budget for all of its governmental funds. A budgetary comparison statement has
been provided for each fund individually to demonstrate compliance with their budgets.
The basic governmental fund financial statements can be found on pages 39-41 of this report.
Proprietary Funds are used to account for a government's business-type activities. The city maintains two different
types of proprietary funds - enterprise funds and internal service funds. Enterprise funds are used to report the same
functions presented as business-type activities in the governmental-wide financial statements. The city uses enterprise
funds to account for its sanitary sewer, stormwater, and water operations. Internal service funds are an accounting
device used to accumulate and allocate costs internally among the city's various functions. The city uses internal service
funds to account for fleet and property maintenance, risk management, design and communication, finance and
accounting, and other management services.
The city reports all three of the enterprise funds as major funds. These funds are the Sanitary Sewer Fund, the
Stormwater Fund, (which consists of the budgetary Stormwater and the Water Quality/Quantity Funds), and the Water
Fund, (which includes the budgetary Water, Water SDC, Water CIP and Water Debt Service Funds). However, for
budgetary and legal purposes these funds are accounted for separately. Conversely, all internal service funds are
combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for
the internal service funds is provided as other supplementary information.
The city also adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance with the
budget, budgetary comparison statements have been provided for the enterprise funds as other supplementary
information on pages 109-119 of this report. Budgetary comparisons for the internal service funds are provided on
pages 121-126 of this report.
The proprietary fund financial statements can be found on pages 42-44 in the basic financial statements.
Fiduciary Funds are used to report assets held in a trustee or agency capacity for others and therefore cannot be used to
support the government's own programs. The city has a pension trust fund that accounts for employee defined
contribution plans. The accounting used for the fiduciary fund is much like that used for the proprietary funds.
No budget is adopted for the fiduciary fund in accordance with Oregon Local Budget Law.
The fiduciary fund financial statements can be found on page 45 in the basic financial statements.
Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements. The notes to the financial statements can be
found on pages 47-72 of this report.
The combining statements referred to earlier in connection with non-major governmental funds and business-type
funds are presented immediately following the required supplementary information. Combining and individual fund
statements and schedules can be found on pages 78-126 of this report.
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Government-wide Financial Analysis
Net position: As noted earlier, net position may serve over time as a useful indicator of the city's financial position. In
the case of the city, assets exceeded liabilities by$319.7 million at June 30, 2014.
The largest portion of the city's net position (82.8 percent) reflects its investment in capital assets (e.g., land, buildings,
roads, sewers, stormwater facilities, etc.) less any related debt used to acquire those assets that is still outstanding.
None of these capital assets, including the city infrastructure, are available for future spending. Although the city's
investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities.
NET POSITION AS OF FISCAL YEAR-END
(in millions)
Governmental Activities Business-type Activities Total
FY 13-14 FY 12-13 FY 13-14 FY 12-13 FY 13-14 FY 12-13
Assets
Current and other assets $ 37.3 $ 37.3 $ 96.2 $ 122.0 $ 133.5 $ 159.3
Net capital assets 210.4 207.3 130.5 95.2 340.9 302.5
Total assets 247.7 244.6 226.7 217.2 474.4 461.8
Liabilities
Other liabilities 4.7 4.8 12.6 7.1 17.3 11.9
Outstanding long-term liabilities 30.1 32.3 107.3 107.9 137.4 140.2
Total liabilities 34.8 37.1 119.9 115.0 154.7 152.1
Net position
Net investment in capital assets 185.2 181.2 79.6 74.0 264.8 255.2
Restricted 10.9 12.0 10.6 9.8 21.5 21.8
Unrestricted 16.7 14.3 16.7 18.5 33.4 32.8
Total net position $ 212.8 $ 207.5 $ 106.9 $ 102.3 $ 319.7 $ 309.8
The city's net position increased by $9.9 million during the fiscal year. About $4.5 million of the increase was
attributable to the increase in water rates and decrease in transfers-out in that service. The other $5.4 million of the
increase was due to overall revenues exceeding expenses.
The revenues and expenses shown on the next table explain changes in net position for fiscal year 2014.
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Changes in Net Position
(in millions)
Governmental Activities Business-type Activities Total
FY 13-14 FY 12-13 FY 13-14 FY 12-13 FY 13-14 FY 12-13
Revenues
Program Revenues
Charges for services $ 6.2 $ 7.0 $ 20.4 $ 18.7 $ 26.6 $ 25.7
Operating grants/contributions 6.3 6.9 - - 6.3 6.9
Capital grants/contributions 1.8 2.2 1.1 1.7 2.9 3.9
Total Program revenues 14.3 16.1 21.5 20.4 35.8 36.5
Taxes 21.3 21.2 - - 21.3 21.2
Interest 0.4 0.3 0.3 0.1 0.7 0.4
Other 3.8 2.8 0.1 0.2 3.9 3.0
Total General revenues 25.5 24.3 0.4 0.3 25.9 24.6
Total revenues 39.8 40.4 21.9 20.7 61.7 61.1
Expenses
Community services 20.0 19.1 - - 20.0 19.1
Public works 8.4 8.6 - - 8.4 8.6
Community development 4.3 4.0 - - 4.3 4.0
Policy and administration 1.7 1.3 - - 1.7 1.3
Interest on long-term debt 1.1 1.2 - - 1.1 1.2
Sewer - - 2.6 2.1 2.6 2.1
Storm water - - 2.0 2.0 2.0 2.0
Water - - 11.7 12.0 11.7 12.0
Total expenses 35.5 34.2 16.3 16.1 51.8 50.3
Transfers in(out) 1.0 0.1 (1.0) (0.1) - -
Changes in net position 5.3 6.3 4.6 4.5 9.9 10.8
Beginning net position 207.5 201.2 102.3 97.8 309.8 299.0
Ending net position $ 212.8 $ 207.5 $ 106.9 $ 102.3 $ 319.7 $ 309.8
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Revenues — Governmental Activities
Property taxes continue to be a major source of revenue for the funding of city programs. Oregon has a "rate-based"
system in which property taxes are expressed in a dollar amount per thousand dollars of assessed value. The City of
Tigard's permanent tax rate is$2.5131 per thousand dollars of assessed value. The money raised by this levy is available
for general purposes.
The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that year. Assessed
value growth is limited to a maximum 3 percent per year, plus a pro-rated share of new construction and annexations.
Assessed value cannot exceed real market value. The city has begun to see a significant number of properties whose
assessed value is at or near real market value. For this reason, growth in the city's property taxes levied for general
purposes was less than 3 percent for fiscal year 2014. These tax revenues are recorded in the General Fund and are
available for any legal expense.
General Obligation (GO) debt service levies are calculated to produce enough tax revenues that (when combined with
other resources such as interest earnings and fund balance) will be enough to pay debt service due on these voter-
approved bonds. On November 2, 2010,voters approved a bond measure in the amount of$17.0 million for acquisition
and development of park land. These bonds were sold on February 3, 2011 to Wells Fargo Bank, National Association.
Also on that date,the city refunded $9.0 million of outstanding general obligation bonds that were approved on May 21,
2002, by voters to build a new library. Taxes collected through the tax levy will repay this bonded debt.
Property taxes constitute 39.7 percent of total governmental revenues. Intergovernmental revenue, charges for
services, franchise fees and other revenues make up the bulk of the city's governmental revenue:
> Franchise fees are charged to public utilities for the use of the public right-of-way. Franchised activities paying
the fee include electricity, natural gas, telecommunications, cable television, water, sewer and solid waste
haulers. Franchise fee revenue totaled $5.5 million in fiscal year 2014.
➢ Operating grants and contributions constitutes a significant amount of funding for the city in the amount of$6.3
million. This category includes the city's share of the Washington County Cooperative Library Services (WCCLS)
tax levy, along with state and county gas tax revenues.
> Intergovernmental revenue is another significant revenue category and totals $3.0 million. These revenue
sources include state shared revenues such as cigarette tax, liquor tax, and revenue sharing. In addition, this
category also includes the city's portion of the county-wide hotel/motel tax.
> Charges for service includes a variety of land use planning and permit fees, library fines, and other miscellaneous
types of fees and charges-$6.2 million.
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Governmental Activities
Interest Fiscal Year 2014 Other
$421,211 Revenues by Source $776,154
1% $39,837,210 1%
Intergovernmental Charges for Service
revenue
$2955652 $6,222,103
16%
7%
Franchise fees Operating grants
$5,542,647 and contributions
14% $6,318,382
16%
Property Taxes
$15,796,663 Capital grants
40% $1,804,398
5%
Revenues - Business-type Activities
Charges for services represent 93.1 percent of total revenues and are composed of fees that are charged to all users for
services provided such as water, sanitary sewer, and stormwater. The sanitary and stormwater fees are established by
Clean Water Services (CWS) and are set by the agency each year. The city council, through an intergovernmental
agreement with other water system participants, sets the water rates.
The city is continuing to pursue efforts to secure a long-term water source to meet future demands over the next 50
years. In August 2008 the city entered into an intergovernmental agreement with the City of Lake Oswego in which the
City of Tigard will share the cost of upgrading and expanding Lake Oswego's water treatment plant in return for a long-
term water contract. The city conducted a water rate study during fiscal year 2010. The city council approved rate
increases of 7% on October 1, 2010 and 30.5 % on January 1, 2011, along with 14% increases on January 1, 2012, 2013,
and 2014.
Sanitary rates have been traditionally adjusted by CWS annually with the increase in revenues being dedicated to debt
service requirements for treatment plant expansions made by the agency.
Stormwater rates increased approximately 8.7%in fiscal year 2014.
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Expenses - Governmental Activities
Expenses related to governmental activities are shown in the chart below and are expressed as a percent of total
expenses for all governmental activities.
The majority of the expenses (56.3 percent) relate to the city library and police department within the community
services activity.
Overall, expenses in governmental activities increased by $1.3 million over the previous fiscal year. The majority of this
increase can be attributed to increases in personal services salaries and benefits.
Expenses by Service Type
Fiscal Year 2014
Policy and Governmental Activities
administration $35,568,969 Interest on long-
$1,732,016 term debt
5% $1,147,024
3%
___________itillo
Community
development
$4,267,328
12%
Community
services
$20,023,165
56%
Public works_
$8,399,436
24%
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Expenses - Business-type Activities
The majority of the expenses (71.9 percent) relate to the drinking water service provider activity. Currently the city does
not have its own water source, so it has to purchase water from other agencies. This water purchase expense is a major
portion of the total water expenses. In addition, interest on the revenue bond debt issued to fund the water
partnership was$3.1 million in fiscal year 2014. Expenses in the water division were unchanged compared to last year.
Sanitary sewer expenses increased slightly from the previous year. Financial forecasting shows that current expenses
are not sustainable given current revenues. The city is conducting a rate review to determine the necessary steps to
make the Sewer Fund sustainable.
Stormwater expenses decreased only slightly from the previous fiscal year. There has been no major growth or
expansion of the stormwater system, but the city is also analyzing needs in this system to determine if current revenues
are sufficient to cover needed repairs and improvements in the near future.
Expenses by Service Type
Fiscal Year 2014
Business-type Activities
$16,306,523 Sewer
$2,617,625
16%
Stormwater
$1,958,551
12%
Water
$11,730,347
72%
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Financial Analysis of the City's Funds
As noted earlier, the city uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
The focus of the city's governmental funds is to provide information on near-term inflows, outflows, and balances of
spendable resources. Such information is useful in assessing the city's financing requirements. In particular, unassigned
fund balance may serve as a useful measure of the city's net resources available for spending at the end of the fiscal
year.
As of the end of the fiscal year 2014, the city's governmental funds reported combined ending fund balances of $29.1
million, unchanged from the prior year. Most of that fund balance, $12.5 million, is reported as restricted for various
purposes. In addition, $3.1 million is reported as committed for street maintenance and improvements and $1.3 million
is committed for urban forestry.
General Fund
The General Fund is the chief operating fund of the city. At the end of the fiscal year 2014, the unassigned fund balance
was $11.5 million that can be used for funding of city programs. This is an increase of approximately $1.8 million which
is primarily due to increasing revenues and relatively flat expenditures. The city is cautiously optimistic that the local
economy is improving.
Gas Tax Fund
This fund records shared revenues from state and county taxes on the sale and use of motor vehicle fuel. The majority
of the revenue comes from a flat per-gallon tax on gasoline. Funds are restricted for construction, reconstruction,
improvement, repair, maintenance, operation, and use of public highways, roads, streets, and roadside rest areas. This
revenue source can also be used for street lighting and cleaning, storm drainage, traffic control devices, and cost of
administration.
At the end of fiscal year 2014, the fund balance was $1.0 million, a decrease of $0.8 million from the prior year.
Revenues of about$3.2 million were used to fund street maintenance, street lighting and debt service on transportation
bonds. This fund is being monitored as resources are not increasing as fast as requirements. The Oregon legislature has
been reviewing possible changes to the state gas tax as electric cars and more fuel-efficient gasoline cars reduce the
amount of revenue available to local governments.
Proprietary Funds
The city's proprietary funds include the Sanitary Sewer, Stormwater,Water, and Internal Services Funds.
The unrestricted net position of the business-type activities which include the Sanitary Sewer, Stormwater, and Water
Funds at the end of the year amounted to $16.7 million, a decrease of$1.8 million from the prior year. The decrease in
unrestricted net position is largely due to the increase in net investment in capital assets. The portion of net position
reported as a net investment in capital assets increased by $5.6 million this year. The total increase in net position for
these funds was$4.6 million, which is included in net investment in capital assets.
The factors concerning the finances of the funds have already been addressed in the discussion of the city's business-
type activities.
31
General Fund Budgetary Highlights
The city council approved three budget amendments to the adopted General Fund budget. Total increase in
appropriations was $303,146. The overall change to the budget in the General Fund after these three amendments was
less than one percent and had no significant effect on future services or liquidity.
The city budgeted the General Fund with the anticipation that ending fund balance would decrease by approximately
$1.8 million. However the financial forecast also recognizes that departments do not spend 100%of the budget, and so
an increase in ending fund balance was expected. Actual results show the ending fund balance increased by almost $1.7
million. This difference was caused by expenditures, including transfers out, that were $2.3 million lower than budget
and $1.1 million of unspent contingency.
For expenditures, the variance was primarily due to a conservative approach to the budget. The variance represents
approximately 5% of expenditures, which is in line with the city's forecasting assumption that departments will spend
approximately 95% of their budgets. In the financial forecast this ending fund balance is used to cushion the continuing
issue of expenditures growing at a faster rate than revenues.
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Capital Asset and Debt Administration
Capital Assets
Governmental Activities
The city's investment in capital assets for its governmental activities as of June 30, 2014, amounts to $210.4 million (net
of accumulated depreciation). This investment in capital assets primarily includes land, buildings, machinery and
equipment, office equipment and infrastructure. The infrastructure includes roads, curbs and sidewalks, signage,
streetlights and right-of-ways. The total increase in the city's investment in governmental activities capital assets was
$3.2 million, approximately 1.5 percent. The city added assets primarily in the parks area as money from the parks
bonds issued in fiscal year 2011 is spent. Expenditures on capital assets were higher than overall depreciation expense,
leading to the increase in net capital assets.
Business-type Activities
The city's investment in capital assets for its business-type activities as of June 30, 2014, amounts to $130.5 million (net
of accumulated depreciation). In addition to machinery, equipment and vehicles, the capital assets include the sanitary
sewer collection system, stormwater, and water systems. Total increase in the city's investment in business-type
activities capital assets was $35.3 million or 37%. This is primarily due to work being done on the city's water
partnership with the City of Lake Oswego.
Capital Assets at Year-end
(net of depreciation-in millions)
Governmental Activities Business-type Activities Total
FY 13-14 FY 12-13 FY 13-14 FY 12-13 FY 13-14 FY 12-13
Land $ 24.9 $ 24.6 $ 5.2 $ 5.2 $ 30.1 $ 29.8
Construction in progress 5.4 3.2 65.7 29.0 71.1 32.2
Buildings and building improv. 15.8 16.1 0.8 0.9 16.6 17.0
Land improvements 2.1 0.6 - - 2.1 0.6
Sewer system - - 14.4 14.6 14.4 14.6
Storm drainage system - - 9.8 10.0 9.8 10.0
Water system - - 34.0 35.2 34.0 35.2
Machinery and equipment 1.4 1.4 0.3 - 1.7 1.4
Autos and trucks 0.7 0.6 0.3 0.3 1.0 0.9
Infrastructure 160.1 160.8 - - 160.1 160.8
Total capital assets $ 210.4 $ 207.3 $ 130.5 $ 95.2 $ 340.9 $ 302.5
Additional information on the city's capital assets can be found in the notes on pages 59-60 of this report.
33
Debt Outstanding
As of year-end, the city had four types of long-term debt currently outstanding, two of which are governmental and two
are business-type. The governmental debt includes general obligation bonds ($27.1 million) secured by the city's
authority to levy property taxes and assessment bonds ($.4 million) secured by installment payment contracts with
property owners. For the business-type activity, the city issued revenue bonds during fiscal year 2012 with a par value
of $97.7 million. The proceeds from these bonds are being used to fund water capital projects, primarily the costs
associated with the Tigard/Lake Oswego Water Partnership. The city is making interest-only payments on these bonds
until fiscal year 2017. The city also has an outstanding loan payable that is part of a grant and low interest loan package
provided to the city to make improvements to one of the city's water reservoirs. These funds were part of the American
Recovery and Reinvestment Act (ARRA). The outstanding loan balance is $2.2 million.
The most recent bond rating for general obligation issues occurred during fiscal year 2011. The city received a rating of
Aa2 and AA from Moody's and Standard & Poor's, respectively, for general obligations of the city. In March 2014
Standard & Poor's upgraded the city's rating to AA+ based on their opinion that the city is "strong" in the areas of local
economy, management conditions, budgetary flexibility, budgetary performance and liquidity.
Existing debt levels have no direct impact on current or future city operations.
During fiscal year 2012, in anticipation of issuing water revenue bonds, the city received a revenue bond rating of Al
from Moody's and AA-from Standard & Poor's.
The State of Oregon limits the amount of general obligation debt that cities can issue to 3 percent of the real market
value of all taxable property within the city limits. The city's total outstanding general obligation debt is significantly
below the 3 percent limit of$164 million.
Additional information on the city's debt can be found on pages 61-64 of this report.
OUTSTANDING DEBT AT FISCAL YEAR-END
(in millions)
Totals Total Percentage
FY 13-14 FY 12-13 Change
Governmental Activites:
General obligation $ 27.1 $ 28.8 -5.9%
Local improvement 0.4 0.9 -55.6%
Total outstanding debt-Governmental $ 27.5 $ 29.7 -7.4%
Business-type Activities:
Note payable $ 2.2 $ 2.3 -4.3%
Revenue bonds 104.9 105.4 -0.5%
Total outstanding debt-Business-type $ 107.1 $ 107.7 -0.6%
34
Economic Factors
The unemployment rate for the Washington County area was 5.6 percent at the end of the fiscal year, June 30, 2014.
This is a decrease from the same period last year,when the rate was 6.6 percent. The rate is also 0.5 percent lower than
the national average of 6.1 percent for June 2014.
The City of Tigard issues licenses for businesses operating within the city limits. As of March 31, 2014, there were 2,915
businesses licensed in the city. The U.S. Economic Census, which takes place every five years, provides data on industry
sales within the city. Wholesale trade is generating the most dollars in shipments, sales, and receipts. Retail trade
employed the most people, and also ranks second in the amount of dollars generated.
Anecdotal evidence indicates the economy in Washington County is improving. As noted above,the unemployment rate
has decreased for the third straight year, and has decreased from a high of 10.4 percent at June 30, 2009 to 5.6 percent
as of June 30, 2014. In addition, revenue that is an indicator of development, such as building permits and growth
impact fees, has held steady after increasing an average of 49% in fiscal year 2013 over fiscal year 2012. In fiscal years
2012 and 2013 the City of Tigard annexed approximately 500 acres of rural land. Planning is underway to prepare
zoning so the land can be developed primarily for residential uses, and developers are expressing a desire to begin
building houses as soon as possible.
The City of Tigard has developed a comprehensive long-term financial forecast every year since the 1980's. This forecast
allows the city to project expected revenues and expenditures for each of its funds to help anticipate financial
requirements. The comprehensive long-term financial forecast continues to be central to Tigard's financial management
strategy. By forecasting and anticipating financial trends, Tigard can develop strategies to respond to these emerging
financial trends.
The current forecast shows that in the short-term the city's financial condition is stable in most funds. The fiscal year
2014 budget continued addressing a projected General Fund deficit that had been forecasted to occur earlier than what
is now projected. Managers are aware of the continuing issue of flat revenues and increasing expenditure rates and are
managing their budgets with that in mind.
More adjustments were made to the forecast model during the fiscal year 2015 budget preparation, taking into account
the city never spends 100% of its appropriations. The city produced a "hold-the-line" budget for fiscal year 2015, similar
to the budget that was prepared for fiscal year 2014.
The sluggish economy has affected the city's urban renewal agency, which relies on tax-increment financing to fund
downtown projects. As noted in the financial statements' subsequent event note, the agency obtained its first
commercial loan in September 2014 to purchase land in the downtown area for redevelopment.
Requests for Information
This financial report is designed to provide a general overview of the City of Tigard's finances for all those with an
interest in the city's finances. Questions concerning any of the information provided in the report or requests for
additional financial information should be addressed to:
City of Tigard
Financial and Information Services Director
13125 SW Hall Blvd.
Tigard,Oregon 97223
35
Basic Financial Section
36
CITY OF TIGARD,OREGON
STATEMENT OF NET POSITION
June 30,2014
Governmental Activities Business-Type Activities Total
ASSETS
Cash and investments $ 19,984,111 $ 24,347,970 $ 44,332,081
Accounts receivable 3,390,847 4,008,223 7,399,070
Property taxes receivable 740,392 - 740,392
Assessment liens receivable 542,206 - 542,206
Prepaid expenses 632,479 599,814 1,232,293
Property held for resale - 445,042 445,042
Inventory 54,986 84,722 139,708
Restricted cash and investments 11,921,332 66,757,266 78,678,598
Capital assets:
Land and construction in process 30,284,331 70,980,515 101,264,846
Other capital assets(net of accumulated depreciation) 180,126,501 59,538,713 239,665,214
Total Assets 247,677,185 226,762,265 474,439,450
LIABILITIES
Accounts payable and accrued liabilities 2,769,433 10,643,192 13,412,625
Customer deposits 1,112,973 38,241 1,151,214
Due to others 559,591 - 559,591
Due to(from)other activities 200,000 (200,000) -
Unearned revenue 59,661 - 59,661
Accrued interest payable 88,173 2,005,124 2,093,297
Due within one year:
Notes payable - 95,150 95,150
Bonds payable 2,069,065 470,602 2,539,667
Accrued compensated absences 920,905 111,941 1,032,846
Special assessment bonded debt w/gov.commit 72,100 - 72,100
Capital lease 13,592 - 13,592
Due in more than one year:
Notes payable - 2,105,957 2,105,957
Bonds payable 24,990,106 104,426,084 129,416,190
Accrued compensated absences 306,968 37,314 344,282
Special assessment bonded debt w/gov.commit 373,656 - 373,656
Capital lease 44,482 - 44,482
Net OPEB obligation 1,261,111 128,451 1,389,562
Total Liabilities 34,841,816 119,862,056 154,703,872
NET POSITION
Net investment in capital assets 185,242,899 79,627,259 264,870,158
Restricted for:
Capital projects 8,731,812 3,910,001 12,641,813
Debt service 2,147,352 6,641,441 8,788,793
Community development 2,080,034 - 2,080,034
Public safety 182,978 - 182,978
Unrestricted 14,450,292 16,721,508 31,171,800
Total Net Position $ 212,835,367 $ 106,900,209 $ 319,735,576
The accompanying notes are an integral part of the basic financial statements.
37
CITY OF TIGARD,OREGON
STATEMENT OF ACTIVITIES
for the year ended June 30,2014
Net(Expense)Revenue and Changes in Net Position-
Program Revenues
Primary Government
Charges Operating Capital
for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
GOVERNMENTAL ACTIVITIES
Community services $ 20,023,165 $ 1,872,350 $ 3,082,904 $ - $ (15,067,910) $ - $ (15,067,910)
Public works 8,399,436 2,519,515 3,184,827 1,804,398 (890,696) - (890,696)
Community development 4,267,328 1,765,005 50,651 - (2,451,672) - (2,451,672)
Policy and administration 1,732,016 65,233 - - (1,666,783) - (1,666,783)
Interest on long-term debt 1,147,024 - - - (1,147,024) - (1,147,024)
Total governmental activities 35,568,969 6,222,103 6,318,382 1,804,398 (21,224,086) - (21,224,086)
BUSINESS-TYPE ACTIVITIES
Sewer 2,617,625 1,727,206 - 63,262 - (827,157) (827,157)
Stormwater 1,958,551 2,733,346 - 160,973 - 935,768 935,768
Water 11,730,347 15,985,607 - 887,111 - 5,142,371 5,142,371
Total business-type activities 16,306,523 20,446,159 - 1,111,346 - 5,250,982 5,250,982
Total $ 51,875,492 $ 26,668,262 $ 6,318,382 $ 2,915,744 (21,224,086) 5,250,982 (15,973,104)
General Revenues:
Property taxes,levied for general purposes 13,499,588 - 13,499,588
Property taxes,levied for debt service 2,297,075 - 2,297,075
Franchise fees 5,542,647 - 5,542,647
Unrestricted intergovernmental revenues 2,955,652 - 2,955,652
Interest earnings 421,211 270,415 691,626
Miscellaneous 776,154 144,767 920,921
Total general revenues 25,492,327 415,182 25,907,509
Transfers between Governmental and Business-type Activities 1,017,893 (1,017,893) -
Change in net position 5,286,134 4,648,271 9,934,405
Net position--beginning 207,549,233 102,251,938 309,801,171
Net position--ending $ 212,835,367 $ 106,900,209 $ 319,735,576
The accompanying notes are an integral part of the basic financial statements.
38
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-BALANCE SHEET
June 30,2014
General Gas Tax Other Total
Fund Fund Gov.Funds Gov.Funds
ASSETS
Cash and investments $ 11,305,327 $ 1,446,242 $ 17,306,721 $ 30,058,290
Accounts receivable 2,663,413 263,855 442,331 3,369,599
Due from other funds 604,795 - - 604,795
Property taxes receivable 625,334 - 115,058 740,392
Assessment liens receivable - - 542,206 542,206
Prepaid items 508,374 3,670 12,385 524,429
Total Assets $ 15,707,243 $ 1,713,767 $ 18,418,701 $ 35,839,711
LIABILITIES
Accounts payable and accrued liabilities $ 1,915,885 $ 103,207 $ 374,104 $ 2,393,196
Customer deposits 119,218 625,290 368,465 1,112,973
Due to others 530,350 - 29,241 559,591
Due to enterprise fund - - 200,000 200,000
Due to other funds - - 604,795 604,795
Unearned revenue - - 59,661 59,661
Total Liabilities 2,565,453 728,497 1,636,266 4,930,216
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues:
Property taxes 575,103 - 105,140 680,243
Franchise fees 134,697 - - 134,697
Municipal court receivable 448,916 - - 448,916
Assessment liens - - 533,035 533,035
Total Deferred Inflows of Resources 1,158,716 - 638,175 1,796,891
FUND BALANCES
Nonspendable:
Prepaid expense 508,374 3,670 12,385 524,429
Restricted for:
Street maintenance and improvements - 981,600 2,228,979 3,210,579
Debt service - - 1,518,201 1,518,201
Park improvements - - 4,460,982 4,460,982
Underground utilities - - 576,579 576,579
Building inspection - - 2,080,034 2,080,034
Police services - - 182,978 182,978
Library improvements - - 474,648 474,648
Committed for:
Street maintenance and improvements - - 3,107,372 3,107,372
Urban forestry - - 1,349,861 1,349,861
Assigned to:
City facilities - - 905,166 905,166
Unassigned: 11,474,700 (752,925) 10,721,775
Total fund balances 11,983,074 985,270 16,144,260 29,112,604
Total liabilities,deferred inflows of resources and fund balances $ 15,707,243 $ 1,713,767 $ 18,418,701
Amounts reported as governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds,net
of accumulated depreciation of$84,168,259. 210,410,832
Other long-term assets are not available to pay for current-period expenditures and,therefore are unavailable in the funds:
Property taxes earned but not available 680,243
Franchise fees earned but not available 134,697
Municipal court receivable 448,916
Assessment liens 533,035
Internal service funds are used by management to charge the cost of administrative functions as well as fleet and property
management to individual funds. The assets and liabilities of the internal service funds are included in governmental
activities in the statement of activities. 1,133,195
Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. (943,448)
Long-term liabilities-not reported in the funds:
Bonds,notes payable and other liabilities,not due and payable in current period (27,504,927)
Capital lease obligation (58,074)
Accrued interest payable,not due and payable in the current period (88,173)
Net OPEB obligation (1,023,533)
Net Position of Governmental Activities $ 212,835,367
The accompanying notes are an integral part of the basic financial statements.
39
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
for the year ended June 30,2014
General Gas Tax Other Total
Fund Fund Gov. Funds Gov.Funds
REVENUES
Taxes $ 13,216,208 $ 2,979,235 $ 2,627,006 $ 18,822,449
City gas tax - - 638,852 638,852
Franchise fees 5,542,647 - - 5,542,647
Special assessments - - 258,831 258,831
Licenses and permits 1,357,704 5,593 1,735,578 3,098,875
Intergovernmental revenues 6,032,359 - 354,602 6,386,961
Charges for services 2,747,937 - 3,189,952 5,937,889
Fines and forfeitures 860,914 - 68,379 929,293
Interest earnings 185,343 65,168 173,710 424,221
Miscellaneous 118,443 135,589 58,783 312,815
Total revenues 30,061,555 3,185,585 9,105,693 42,352,833
EXPENDITURES
Current operating:
Community services 19,409,836 - 10,499 19,420,335
Public works 5,051,835 1,862,350 - 6,914,185
Community development 2,836,409 - 1,383,072 4,219,481
Policy and administration 701,172 - - 701,172
Debt service:
Principal - 455,225 1,990,768 2,445,993
Interest - 151,153 1,027,484 1,178,637
Capital outlay - - 7,657,993 7,657,993
Total expenditures 27,999,252 2,468,728 12,069,816 42,537,796
Excess(deficiency)of revenues over(under)expenditures 2,062,303 716,857 (2,964,123) (184,963)
OTHER FINANCING SOURCES(USES)
Transfers in - 100,000 6,320,053 6,420,053
Transfers out (239,906) (1,643,466) (4,363,895) (6,247,267)
Total other financing sources(uses) (239,906) (1,543,466) 1,956,158 172,786
Net change in fund balances 1,822,397 (826,609) (1,007,965) (12,177)
Fund balances-beginning of the year 10,160,677 1,811,879 17,152,225 29,124,781
Fund balances-end of year $ 11,983,074 $ 985,270 $ 16,144,260 $ 29,112,604
The accompanying notes are an integral part of the basic financial statements.
40
CITY OF TIGARD, OREGON
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
for the year ended June 30, 2014
Net change in fund balances--total governmental funds $ (12,177)
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures
while governmental activities report depreciation expense to
allocate those expenditures over the life of the assets. This is
the amount by which capital outlay exceeded depreciation
in the current period.
Expenditures for capital assets 7,815,815
Contributed capital -
Less current year depreciation (4,602,646) 3,213,169
In the Statement of Activities,the loss on the disposition
of capital assets is reported. The loss is not a use of
current resources and thus is not reported in the funds. (56,096) (56,096)
Revenues in the Statement of Activities that do not
provide current financial resources are not reported
as revenues in the funds.
Property taxes 46,549
Long-term receivables (16,257)
Grants (163,373)
Franchise Fee 2,933
Municipal court receivable 119,123
Assessment liens (292,274) (303,299)
Long-term debt proceeds provide current financial resources to
governmental funds, but issuing debt increases long-
term liabilities in the Statement of Net Assets. Repayment
of bond principal is an expenditure in the
governmental funds, but the repayment reduces long-term
liabilities in the Statement of Net Position.
Principal payments 2,442,983 2,442,983
Some expenses reported in the Statement of Activities
do not require the use of current financial resources
and therefore are not reported as expenditures in
governmental funds.
Increase in compensated absences (66,704)
Decrease in accrued interest and unamortized bond
premium on debt 31,613
Increase in net OPEB obligation (159,473) (194,564)
Internal service funds are used by management to charge the
cost of administrative functions as well as fleet and property
management to individual funds. The net revenue of internal service
funds is reported with governmental activities.
Change in Net Position- Internal Service Funds 196,118
Change in Net Position of Governmental Activities $ 5,286,134
The accompanying notes are an integral part of the basic financial statements.
41
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30,2014
Business-type Activities Governmental
-Enterprise Funds Activities
Internal
Sanitary Service
Sewer Stormwater Water Totals Funds
ASSETS
Current assets:
Cash and investments $ 4,990,508 $ 4,504,155 $ 14,853,307 $ 24,347,970 $ 1,847,153
Accounts receivable 1,401,296 393,613 2,213,314 4,008,223 21,245
Loan to CCDA 200,000 - - 200,000 -
Prepaid expenses 580,172 3,005 16,637 599,814 108,050
Property held for resale 185,021 260,021 - 445,042 -
Inventory 8,985 8,986 66,751 84,722 54,986
Restricted cash and investments - - 66,757,266 66,757,266 -
Total current assets 7,365,982 5,169,780 83,907,275 96,443,037 2,031,434
Noncurrent assets:
Capital assets:
Land and construction in process 1,953,768 300,299 68,726,448 70,980,515 -
Other capital assets(net of accumulated depreciation) 14,565,464 10,264,196 34,709,053 59,538,713 -
Total noncurrent assets 16,519,232 10,564,495 103,435,501 130,519,228 -
Total assets 23,885,214 15,734,275 187,342,776 226,962,265 2,031,434
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 1,641,427 108,892 8,892,873 10,643,192 376,236
Customer deposits - 8,833 29,408 38,241 -
Accrued interest payable - - 2,005,124 2,005,124 -
Accrued compensated absences 20,947 15,261 75,733 111,941 213,319
Current portion of unamortized bond premium - - 470,602 470,602 -
Current portion of note payable - - 95,150 95,150 -
Total current liabilities 1,662,374 132,986 11,568,890 13,364,250 589,555
Noncurrent liabilities:
Accrued compensated absences 6,982 5,087 25,245 37,314 71,106
Note payable-long-term portion - - 2,105,957 2,105,957 -
Revenue bonds payable-long-term portion - - 104,426,084 104,426,084 -
Net OPEB obligation 30,209 33,902 64,340 128,451 237,578
Total noncurrent liabilities 37,191 38,989 106,621,626 106,697,806 308,684
Total liabilities 1,699,565 171,975 118,190,516 120,062,056 898,239
NET POSITION
Net investment in capital assets 16,519,232 10,564,495 52,543,532 79,627,259 -
Restricted for capital projects - - 3,910,001 3,910,001 -
Restricted for debt service - - 6,641,441 6,641,441 -
Unrestricted 5,666,417 4,997,805 6,057,286 16,721,508 1,133,195
Total net position $ 22,185,649 $ 15,562,300 $ 69,152,260 $ 106,900,209 $ 1,133,195
The accompanying notes are an integral part of the basic financial statements.
42
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION
for the year ended June 30,2014
Business-type Activities Governmental
-Enterprise Funds _ Activities
I Internal
Sanitary Service
Sewer Stormwater Water Totals Funds
OPERATING REVENUES
Charges for services $ 1,727,206 $ 2,733,346 $ 15,985,607 $ 20,446,159 $ 7,977,919
Miscellaneous 35,525 15,096 94,146 144,767 115,881
Total operating revenues 1,762,731 2,748,442 16,079,753 20,590,926 8,093,800
OPERATING EXPENSES
Salaries and wages 480,196 575,851 1,225,170 2,281,217 4,775,398
Contracted services 8,298 378,465 3,600,264 3,987,027 1,032,137
General,administrative and other 1,518,415 548,711 2,548,678 4,615,804 2,090,147
Depreciation 610,716 455,524 1,304,007 2,370,247 -
Total operating expenses 2,617,625 1,958,551 8,678,119 13,254,295 7,897,682
Operating income(loss) (854,894) 789,891 7,401,634 7,336,631 196,118
NON-OPERATING REVENUES(EXPENSES)
Investment revenue - - 270,415 270,415 -
Interest expense - - (3,052,228) (3,052,228) -
System development revenue 15,761 4,875 832,111 852,747 -
Total non-operating revenues(expenses) 15,761 4,875 (1,949,702) (1,929,066) -
Net income before contributions(loss) (839,133) 794,766 5,451,932 5,407,565 196,118
Capital contributions 47,501 156,098 55,000 258,599 -
Transfers in 542,107 - 58,751 600,858 -
Transfers out (107,931) (455,033) (1,055,787) (1,618,751) -
Change in net position (357,456) 495,831 4,509,896 4,648,271 196,118
Net position--beginning of year 22,543,105 15,066,469 64,642,364 102,251,938 937,077
Net position--end of year $ 22,185,649 $ 15,562,300 $ 69,152,260 $ 106,900,209 $ 1,133,195
The accompanying notes are an integral part of the basic financial statements.
43
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
for the year ended June 30,2014
Business-type Activities Governmental
-Enterprise Funds Activities
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 10,455,521 $ 2,697,798 $ 16,008,375 $ 29,161,694 $ 7,974,641
Payments to suppliers (9,165,096) (1,057,155) (1,072,472) (11,294,723) (3,148,250)
Payments to employees (474,455) (565,966) (1,184,244) (2,224,665) (4,742,874)
Other receipts - 15,096 94,146 109,242 100,042
Internal activity-payments to other funds (633,042) - - (633,042)
Net cash provided(used)by operating activities 182,928 1,089,773 13,845,805 15,118,506 183,559
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds (107,931) (455,033) (1,055,787) (1,618,751) -
Proceeds from other funds - - 58,751 58,751
Net cash(used)by noncapital
financing activities (107,931) (455,033) (997,036) (1,560,000) -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
System development revenue 15,761 4,875 832,111 852,747 -
Payments on notes - - (562,985) (562,985) -
Interest expense - - (3,053,844) (3,053,844)
Transfers in for capital assets 542,107 - - 542,107 -
Disposition of capital assets (578,383) - - (578,383) -
Acquisition of capital assets (1,286,906) (185,519) (35,918,109) (37,390,534)
Net cash(used)by capital and related
financing activities (1,307,421) (180,644) (38,702,827) (40,190,892) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings - - 270,415 270,415 -
Netincrease(decrease)in cash and investments (1,232,424) 454,096 (25,583,643) (26,361,971) 183,559
Cash and investments--beginning of the year 6,222,932 4,050,059 107,194,216 117,467,207 1,663,594
Cash and investments--end of the year $ 4,990,508 $ 4,504,155 $ 81,610,573 $ 91,105,236 $ 1,847,153
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income(loss) $ (854,894) $ 789,891 $ 7,401,634 $ 7,336,631 $ 196,118
Adjustments to reconcile operating income(loss)to net cash
provided(used)by operating activities:
Cash flows reported in other categories:
Depreciation expense 610,716 455,524 1,304,007 2,370,247 -
Change in assets and liabilities:
Receivables (21,629) (35,547) 18,868 (38,308) (3,170)
Prepaid expenses - - (3,331) (3,331) (7,953)
Inventory (8,985) (8,986) (15,770) (33,741) (18,786)
Accounts payable and accrued liabilities 451,978 (120,994) 5,095,571 5,426,555 773
Unearned revenue - - - - (15,948)
Accrued compensated absences 646 4,788 30,733 36,167 (5,782)
Customer deposits - - 3,900 3,900 -
OPEB obligation 5,096 5,097 10,193 20,386 38,307
Net cash provided(used)by operating activities $ 182,928 $ 1,089,773 $ 13,845,805 $ 15,118,506 $ 183,559
The accompanying notes are an integral part of the basic financial statements.
44
CITY OF TIGARD, OREGON
STATEMENT OF PLAN NET POSITION
PENSION TRUST FUND
June 30, 2014
ASSETS
Cash and cash equivalents $ 5,554,625
Corporate bonds 501,254
Corporate stocks 17,064,904
Total Assets 23,120,783
Net Position of Assets Held in Trust for Pension Benefits $ 23,120,783
STATEMENT OF CHANGES IN PLAN NET POSITION
PENSION TRUST FUND
for the year ended June 30, 2014
ADDITIONS
Contributions-employer $ 1,244,072
Contributions-employee 202,791
Investment income 3,049,113
Total Additions 4,495,976
DEDUCTIONS
Benefit payments and withdrawals 1,466,799
Increase in Net Position 3,029,177
Net Position of Assets Held in Trust for Pension Benefits
-Beginning of Year 20,091,606
End of Year $ 23,120,783
The accompanying notes are an integral part of the basic financial statements.
45
Notes to Basic
Financial Statements
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies:
The City of Tigard, under its Charter of 1961, is governed by an elected mayor and four council
members who comprise the City Council. The City Council appoints a City Manager, who acts as the
administrative head of government for the city.
The accompanying financial statements present the city and its component unit. The activities of
the Tigard City Center Development Agency (the agency) are included in the city's financial
statements as a blended component unit. The agency is a legally separate entity, which is governed
by a board comprised of the City Council, as stipulated in the bylaws. The Council has the ability to
impose its will on the agency as determined on the basis of budget adoption, taxing authority, and
funding. The purpose of the agency is to undertake urban renewal projects and activities pursuant
to the city's downtown redevelopment plan. The financial results of the agency are reported herein
as a debt service fund and a capital projects fund. The agency also prepares a separate component
unit financial report that may be obtained from the agency's administrative offices at 13125 SW Hall
Blvd.,Tigard, Oregon 97223.
The financial statements of the city have been prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP). GAAP statements include all relevant
GASB pronouncements. The city applies the provisions of all applicable GASB statements that define
requirements and the reporting model for the annual financial reports of state and local
governments. The city has recorded capital and certain other long-term assets and liabilities in the
Statement of Net Position, reported all revenues and the cost of providing services under the
accrual basis of accounting in the Statement of Activities, and uses the direct method of reporting
cash flows.
Basic Financial Statements
Basic financial statements are presented at both the government-wide and fund financial level.
Both levels of statements categorize activities as either governmental or business-type.
Governmental activities, which are normally supported by taxes and intergovernmental revenues,
are reported separately from business-type activities, which rely to a significant extent on fees and
charges for support.
Government-wide financial statements display information about the city as a whole. For the most
part, the effect of interfund activity has been removed from these statements. Interfund services
provided by one fund and charged to another have been eliminated in the Statement of Activities
with the exception of transfers between governmental activities and business-type activities. These
statements focus on the sustainability of the city as an entity and the change in aggregate financial
position resulting from the activities of the fiscal year. These aggregated statements consist of the
Statement of Net Position and the Statement of Activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to customers
or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a
47
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies (continued):
given function or segment, and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment.
Indirect expenses are recovered through internal service fund charges. These indirect expenses are
allocated based on a full-cost approach, thereby allocating indirect expenses among functions with
the objective of allocating all expenses. Taxes and other items not included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and the
pension trust fund, even though the pension trust fund is excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise funds
are reported as separate columns in the fund financial statements.
Fund financial statements display information at the individual fund level. Each fund is considered
to be a separate accounting entity. Funds are classified and summarized as governmental,
proprietary, or fiduciary.
Currently, the city has governmental, proprietary, and fiduciary fund types. Non-major funds are
combined into a single column in the basic financial statements and are detailed in the
supplementary information.
Basis of Presentation
The financial transactions of the city are recorded in individual funds. Each fund is accounted for by
providing a separate set of self-balancing accounts that comprises its assets, deferred outflows of
resources, liabilities, deferred inflows of resources, fund equity, revenues and
expenditures/expenses.
Professional standards set forth minimum criteria (percentage of the assets, deferred outflows of
resources, liabilities, deferred inflows of resources, revenues or expenditures/expenses or either
fund category or the governmental and enterprise combined) for the determination of major funds.
The city may also elect to add major funds that city officials believe are particularly useful to
financial statement users. The city has elected to include the Gas Tax Fund as a major fund in the
current financial statements for consistency. Non-major funds are combined in a column in the fund
financial statements and detailed as supplementary information in the financial report.
Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the various
financial statements. Basis of accounting refers to when transactions are recorded.
The government-wide, proprietary fund and fiduciary fund financial statements are presented on a
full accrual basis of accounting with an economic resource measurement focus. An economic
resource focus concentrates on an entity or fund's net position. All transactions and events that
48
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies (continued):
affect the total economic resources (net position) during the period are reported. An economic
resources measurement focus is inextricably connected with full-accrual accounting. Under the full
accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred, regardless of the timing of related cash inflows and outflows.
Governmental funds financial statements are presented on a modified accrual basis of accounting
with a current financial resource measurement focus. This measurement focus concentrates on the
fund's resources available for spending currently or in the near future. Only transactions and events
affecting the fund's current financial resources during the period are reported.
Similar to the connection between an economic resource measurement focus and full accrual
accounting, a current financial resource measurement focus is inseparable from a modified accrual
basis of accounting. Under modified accrual accounting, revenues are recognized as soon as they
are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the city considers revenues to be available if they are collected within 60
days of the end of the current fiscal year.
Property taxes, intergovernmental and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. Only the portion of special assessments receivable due within the current fiscal period
is considered susceptible to accrual as revenue of the current period. All other revenues are
considered to be measurable and available only when cash is received by the city.
A deferred inflow of resources, shown as unavailable revenue, arises in the governmental funds
balance sheet when potential revenue does not meet both the measurable and available criteria for
recognition in the current year. This unavailable revenue consists primarily of uncollected property
taxes and assessments not deemed available to finance operation of the current period. In the
government-wide Statement of Activities, with a full accrual basis of accounting, revenue must be
recognized as soon as it is earned regardless of its availability. Thus, the liability created on the
governmental fund balance sheet for unavailable revenue is eliminated.
Similar to the way revenues are recorded, governmental funds only record those expenditures that
affect current financial resources. Principal and interest on general long-term debt is recorded as a
fund liability only when due, or to the extent that it is expected to be liquidated with expendable
financial resources. However, in the government-wide financial statements with full accrual basis of
accounting, all expenditures affecting the economic resource status of the government must be
recognized. Thus, the expense and related accrued liability for long-term portions of debt, interest,
other postemployment benefits and compensated absences must be included.
Since the governmental fund statements are presented on a different measurement focus and basis
of accounting than the government-wide statements' governmental column, a reconciliation is
necessary to explain the adjustments needed to transform the fund-based financial statements into
the governmental column of the government-wide presentation. This reconciliation is part of the
basic financial statements.
49
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies (continued):
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions and 3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services, and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The principal
operating revenues of the city's Sanitary Sewer, Storm Sewer and Water Funds are charges to
customers for sales and services. The Sanitary Sewer, Storm Sewer and Water Funds recognize fees
intended to recover the cost of connecting new customers to the city's utility systems as non-
operating revenues. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses and overheads, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
The fiduciary fund accounts for the resources held by the city in a custodial capacity, on behalf of
the employees of the city.
When both restricted and unrestricted resources are available for use, it is the city's policy to use
restricted resources first,then unrestricted resources as they are needed.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and
Equity
Cash and Investments
Investments included in cash and investments are stated at fair value (generally based on quoted
market prices).
For purposes of the Statement of Cash Flows, the city considers the proprietary funds' cash and
investments, and the amounts in the Oregon State Treasurer's Investment Pool, to be cash
equivalents.
Some cash and investments are classified as restricted because their use is limited by parties
external to the city. Restrictions may be imposed by creditors, other governments, laws and/or
enabling legislation. When both restricted and unrestricted resources are available for use, it is the
city's policy to use restricted resources first and then unrestricted resources as they are needed.
Receivables and Payables
Property taxes are levied and become a lien on July 1. Collection dates are November 15, February
15, and May 15 following the lien date. Discounts are allowed if the amount due is received by
November 15 or February 15. Taxes unpaid and outstanding on May 16 are considered delinquent.
50
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies (continued):
The city also has receivables outstanding for assessments on private property. These assessments
include street and sidewalk improvements, sewer line installations and deferral of certain impact
fees (system development charges).
Proprietary fund receivables are recorded as revenue when earned, including services earned but
not billed. The receivables of proprietary funds include billing for residential and commercial
customers utilizing the city's water, sewer and storm water management services.
Many of the city's receivables, including property taxes, assessments and proprietary fund
receivables are deemed to be substantially collectible. Tax and assessments receivable can be
recovered through foreclosure on the subject property. Services can be disconnected if proprietary
fund receivables remain unpaid. Accordingly, no allowance for doubtful accounts is deemed
necessary for these receivables.
Under State of Oregon statutes, municipal court receivables are valid for ten years and are then
renewable for another ten years. According to city policy, these receivables are turned over to an
external collection agency after approximately 180 days. Historical collection percentages average
about 20%. Accordingly, municipal court receivables of$2.6 million have an allowance for doubtful
accounts of $2.0 million. Of the remaining $0.6 million, approximately $0.2 million are being
collected on behalf of the State of Oregon and Washington County, and are therefore shown as
"Due to Others".
Accounts payable to vendors and contractors include general accounts payable, retainage payable,
deposits payable and other accrued liabilities not included in short-term or long-term liabilities.
Inventories
Inventories of parts, materials and supplies are stated at cost on the first-in, first-out basis, in the
proprietary funds. The consumption method is used in accounting for inventory for all funds on the
budgetary basis. The consumption method is used for the government-wide presentation as well as
the proprietary funds and business-type activities.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
pathways, street lights, etc.) are reported in the applicable governmental or business type activities
columns in the government-wide financial statements, and in the proprietary fund statements.
Capital assets are charged to expenditures as purchased or constructed in the governmental fund
statements, and capitalized in the proprietary fund statements. Capital assets are recorded at
historical cost or estimated historical cost. Donated assets are recorded at estimated fair market
value as of the date of the donation.
Capital assets are defined by the city as assets with an initial, individual cost of$5,000 or more, and
an estimated useful life of greater than one year. Additions or improvements and other capital
51
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies (continued):
outlays that significantly extend the useful life of an asset, or that significantly increase the capacity
of an asset are capitalized. Other costs for repairs and maintenance are expensed as incurred.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities
with accumulated depreciation reflected in the Statement of Net Position and is provided on the
straight-line basis over the following estimated useful lives:
Asset Years
Buildings and improvements 25-40
Improvements other than buildings 10-20
Machinery and equipment 5-10
Vehicles 5-10
Utility systems 25-40
Infrastructure 20-40
Accrued Compensated Absences and Sick Pay
It is the city's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. There is no liability for unpaid accumulated sick leave, since the city does not have a policy
to pay any amounts when employees separate from the city. All vacation pay is accrued when
incurred in the government-wide and proprietary fund financial statements. As of June 30, 2014
there was $306,968 in accrued compensated absences in the government-wide financial statements
and $37,314 in the proprietary fund financial statements. A liability for these amounts is reported in
the governmental funds only when it has matured, for example, as result of employee resignations
or retirements.
Interfund Transfers
The city utilizes three types of interfund transfers. The first type is transfers received for services
provided. These transfers are based on a cost allocation plan and are reflected as expenses of the
appropriate activity in the government—wide statements. The second type of transfer is a transfer
of resources. Typically, this transfer is made to close out funds that are no longer needed for
financial reporting. The third type of transfer is a transfer for direct costs that can be specifically
identified and billed directly to the benefiting fund. These types of transfers are reflected as
expenses of the appropriate activity in the basic financial statements.
Long-term Debt
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type in the
Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life
of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond
issuance costs, which are immaterial, are treated as period costs in the year of issue.
52
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies (continued):
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is
reported as other financing sources while premiums and discounts on debt issuances are reported
as other financing sources and uses, respectively. Issuance costs, whether or not withheld from the
actual debt proceeds received, are reported as debt service expenditures.
Fund Balance
In the fund financial statements, the fund balance for governmental funds is reported in a hierarchy
of classifications based primarily on the extent to which the government is bound to honor
constraints on the specific purposes for which amounts in those funds can be spent.
Fund balance is reported as nonspendable when the resources cannot be spent because they are
either in a nonspendable form or legally or contractually required to be maintained intact.
Resources in nonspendable form include inventories, prepaids, deposits and assets held for resale.
Fund balance is reported as restricted when the constraints placed on the use of resources are
either: (a) externally imposed by creditors (such as through debt covenants), grantors, contributors,
laws or regulations of other governments; or (b) imposed by law through constitutional provisions
or enabling legislation.
Fund balance is reported as committed when the City Council passes an ordinance that places
specific constraints on how the resources may be used. The City Council can modify or rescind the
ordinance at any time through passage of an additional ordinance.
Resources that are constrained by the government's intent to use them for a specific purpose, but
are neither restricted nor committed, are reported as assigned fund balance. The city has not
established a policy regarding the assignment of funds, so this category of fund balance represents
the residual amounts not otherwise reported as nonspendable, restricted or committed in
governmental funds outside of the General Fund.
Unassigned fund balance is the residual classification for the General Fund. This classification
represents fund balance that is not assigned, committed, restricted or nonspendable within the
General Fund. This classification is also used to report any deficit fund balance amounts in other
governmental funds.
The Urban Renewal Agency Capital Projects Fund reported a deficit balance of$752,925 at June 30,
2014. This deficit is due to loans from the General Fund and the Sewer Fund that have been spent
on activities in the downtown urban renewal district. This deficit will be liquidated with future
revenues.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available, the city considers restricted amounts to have been spent. Likewise, when an
expenditure is incurred for purposes for which either committed or assigned fund balance is
available,the city considers committed or assigned amounts to have been spent.
53
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies (continued):
Use of Estimates
In preparing the city's financial statements, management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses/expenditures during the reporting period. Actual results could differ from those
estimates.
Budget
A budget is prepared for each fund, except for the Pension Trust Fund, essentially in accordance
with the modified accrual basis of accounting used by governmental funds, which is in accordance
with the legal requirements of Oregon Local Budget Law.
The resolution authorizing appropriations sets the maximum level of expenditures for each fund
and may not legally be over expended. Appropriations lapse at the end of each fiscal year.
Appropriations are made at the major program level for each fund, for example, Community
Services, Public Works, Community Development, Policy and Administration, Debt Service, Capital
Improvements and Contingency. The detail budget document is required to contain more detailed
information for the above-mentioned expenditure categories.
After budget approval, the City Council may approve supplemental budgeted appropriations if an
occurrence, condition, or need exists which had not been ascertained at the time the budget was
adopted. A supplemental budget may require hearings before the public, publications in
newspapers and approval by the City Council. Original and supplemental budgets may be modified
by the use of appropriations transfers between the levels of control. Such transfers require
approval by the City Council. Management may not amend the budget without Council approval.
For GAAP presentation, the transfers from non-operating funds for services provided by the
internal service funds and the General Fund are considered revenues and expenses/expenditures,
as appropriate, but may be considered to be interfund transfers for budgetary purposes.
Fund Types:
The city's financial operations are accounted for in the following funds:
GOVERNMENTAL FUNDS
Governmental funds finance most governmental functions of the city. The acquisition, use and
balances of the city's expendable financial resources and the related liabilities, excluding those
accounted for in proprietary funds, are accounted for through governmental funds. The
measurement focus is upon determination of changes in current financial resources, rather than
upon net position determination. The following are the city's major governmental funds:
54
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies (continued):
General Fund -This fund accounts for the city's general operations. It is used to account for
all transactions not specifically required to be accounted for in the city's other funds.
Gas Tax Fund - This fund records shared revenues from the State and County taxes on the
sale and use of motor vehicle fuel. Funds are used for construction, reconstruction,
improvement, repair, maintenance, operation and use of public highways, roads, streets,
and roadside rest areas.
Monies may also be used for street lighting and cleaning, storm drainage, traffic control
devices and administration costs.
PROPRIETARY FUNDS
Proprietary funds are used to account for the acquisition, operation and maintenance of sewer,
storm drainage, and water systems in the city. These funds are entirely or predominantly self-
supported through user charges to customers. The measurement focus is upon net income
determination, rather than upon determination of changes in current financial resources. The
following are the city's major proprietary funds:
Enterprise Funds:
Sanitary Sewer Fund -This fund accounts for the city's sewer utility operations.
Storm Sewer Fund — This fund accounts for the city's storm drainage operations which
consists of the following two budgetary funds: Storm Sewer Fund and Water
Quality/Quantity Fund.
Water Fund - This fund accounts for the city's water operations which consists of the
following four budgetary funds: Water Fund, Water SDC Fund, Water CIP Fund and Water
Debt Service Fund.
Additionally,the city reports a fiduciary fund type to account for the city's Pension Trust Fund.
NONMAJOR GOVERNMENTAL FUNDS
Other governmental funds include the following governmental fund types:
Special Revenue funds account for restricted or committed revenues for specific purposes.
Debt Service funds account for the accumulation of resources to pay principal and interest on the
city's long-term obligations.
Capital Projects funds account for the accumulation of resources for construction or acquisition of
facilities and equipment.
55
City of Tigard, Oregon
Notes to Basic Financial Statements
2. Cash and Investments:
The city maintains a cash and investment pool that is available for use by all funds except the
Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance
sheet as "cash and investments". The investments of the Pension Trust Fund are held separately
from those of other city funds.
Cash and investments, restricted and unrestricted, are comprised of the following at June 30, 2014:
Primary Fiduciary
Government Activities
Cash on hand $ 7,910 $ -
Cash held by Department of Finance,Washington County 43,095 -
Deposits with financial institutions 14,248,707 5,554,625
Investments 108,710,967 17,566,158
Total cash and investments, restricted and unrestricted $ 123,010,679 $23,120,783
Deposits
Deposits with financial institutions include bank demand deposits and time deposit accounts. The
total bank balance is $20,063,397. Of these deposits, $500,000 was covered by federal depository
insurance and $19,563,397 was collateralized in accordance with Oregon statutes.
Custodial credit risk — deposits. In the case of deposits, this is the risk that in the event of bank
failure,the city's deposits may not be returned to it. The Federal Depository Insurance Corporation
(FDIC) provides deposit insurance up to$250,000 for each institution.
Institutions with deposits in excess of FDIC coverage participate in the Oregon Public Funds
Collateralization Program (PFCP) as defined in Oregon Revised Statutes (ORS) 295. This provides
additional protection for public funds in the event of a bank loss, although it does not guarantee
100% protection. The Office of the State Treasurer categorizes the financial institutions in Oregon.
Based on that categorization, banks must pledge collateral valued at between 10% and 110% of
their public fund deposits. In the event of a bank failure, the entire pool of collateral pledged by all
qualified Oregon public funds bank depositories is available to repay deposits of public funds of
government entities. The Office of the State Treasurer maintains a list of qualified financial
institutions for the deposit of public funds in excess of FDIC insurance. The financial institutions
holding city deposits are all on the State Treasurer's list.
Investments
State statutes authorize the city to invest primarily in general obligations of the U.S. government
and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase
agreements, bankers' acceptances, certain commercial paper and corporate bonds and the State of
Oregon Local Government Investment Pool.
56
City of Tigard, Oregon
Notes to Basic Financial Statements
2. Cash and Investments (continued):
Interest rate risk. In accordance with its investment policy, the city manages its exposure to
declines in fair value by limiting the individual maturities in its investment portfolio to eighteen
months or less.
The city does have a provision in its investment policy that up to twenty percent of the portfolio
can have maturities from eighteen months to thirty-six months.
Custodial credit risk— investments. For an investment, this is the risk that, in the event of failure
of the counterparty, the city will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. All of the city's investments, except for the
investment in the Local Government Investment Pool, are held in safekeeping by the financial
institution in the city's name.
The city participates in the Oregon State Treasurer's Local Government Investment Pool (LGIP), an
open-ended; no-load diversified portfolio created under ORS 294.805 to 294.895 that is not
registered with the U.S. Securities and Exchange Commission as an investment company. The LGIP
is administered by the State Treasurer and the Oregon Investment Council with the advice of the
Oregon Short-Term Fund Board. These funds must be invested and managed, as a prudent investor
would, exercising reasonable care, skill and caution. The Oregon Audits Division of the Secretary of
State's Office audits the LGIP annually. Value of pool shares approximates fair value.
The city employees participate in a defined contribution pension plan. These funds are recorded in
the city's Pension Trust Fund. The balance at June 30, 2014 is $23,120,783. This balance is not
included in the government-wide or fund financial statements, but is shown separately on page 45.
As of June 30, 2014,the city had the following investments:
Investment Type Fair Value I Cost %of Portfolio
State Treasurer's Local
Government Investment Pool $ 85,446,094 $ 85,446,094 78.60%
Money Markets 5,873,108 5,873,108 5.40%
U.S. Government Securities 9,804,414 9,833,953 9.02%
Non-US Securities 1,671,131 1,677,447 1.54%
Certificates of Deposit 247,000 247,000 0.23%
Corporate Bonds 5,669,220 5,825,723 5.21%
Total Investments $ 108,710,967 $ 108,903,325 100.00%
Concentration of credit risk: The city's policy for investing in individual issuers varies depending on
the type of investments. Agency securities are restricted to no more than 90 percent of the total
portfolio. Municipal bonds are restricted to no more than 25 percent of the total portfolio. No
more the 35 percent of the total portfolio of investments may be invested in corporate bonds.
Investments in corporate bonds of any one issuer may not exceed 5 percent of the investment
portfolio.
57
City of Tigard, Oregon
Notes to Basic Financial Statements
2. Cash and Investments (continued):
Credit risk: The city's policy, which adheres to State of Oregon law, is to limit its Corporate and
Municipal investments to the following: Issuers within Oregon must be rated "A" (bonds) or A-2 /
P-2 (commercial paper) or better by Standard and Poor's, Moody's Investors Service or any other
nationally recognized statistical rating organization. Issuers not in Oregon must be rated AA / Aa
(bonds) or A-1/ P-1 (commercial paper)or better.
At June 30, 2014,the city's investments were rated as follows:
Highest Rating from
Moody's Investors Service or Standard & Poor's Corporation
Investment Type Total Aaa/AAA Aa/AA Not Rated
LGIP $ 85,446,094 $ - $ - $ 85,446,094
Money Markets 5,873,108 - - 5,873,108
US Government Securities 9,804,414 9,804,414 - -
Non-US Securities 1,671,131 - 1,671,131 -
Municipal Bonds - - - -
Certificates of Deposit 247,000 - - 247,000
Corporate Bonds 5,669,220 5,669,220 - -
Total $ 108,710,967 $ 15,473,634 $1,671,131 $ 91,566,202
The city has a formal investment policy that explicitly limits investment maturities as a means of
managing its exposure to fair value loss arising from increasing interest rates. At June 30, 2014,the
concentration of those maturities included the Local Government Investment Pool, Money
Markets, and investments with average maturities of twelve months or less at 92.55% of the total
portfolio. Investments with maturities between twelve and eighteen months made up 1.39% of
the portfolio and investments with maturities between eighteen and thirty-six months were 6.06%
of the total portfolio.
3. Assessment Liens Receivable:
Assessment liens receivable represent the uncollected amounts levied against benefited property
for the cost of local improvements. Because the assessments are liens against the benefited
property, an allowance for uncollectible amounts is not deemed necessary. Substantially all
assessments are payable over a period of 10 to 20 years. Assessments bear interest from 5.2 to 9.4
percent. At June 30, 2014, the portion of the assessments receivable balance that represents
delinquent accounts is insignificant.
58
City of Tigard, Oregon
Notes to Basic Financial Statements
4. Capital Assets:
Capital asset activity for governmental activities for the year ended June 30, 2014 was as follows:
Balances Balances
June 30, 2013 Additions Deletions Transfers June 30, 2014
Non-depreciable
Land $ 24,553,392 $ 75,000 $ - $ 265,270 $ 24,893,662
Construction in progress 3,236,689 5,288,876 - (3,134,896) 5,390,669
Total non-depreciable 27,790,081 5,363,876 - (2,869,626) 30,284,331
Depreciable
Building and improvements 22,593,868 7,454 - 391,988 22,993,310
Land improvements 6,203,480 - - 1,485,565 7,689,045
Machinery and equipment 2,395,158 31,825 - - 2,426,983
Autos and trucks 2,359,692 369,720 (152,265) - 2,577,147
Office equipment 2,077,799 258,000 - 80,987 2,416,786
Infrastructure 223,495,463 1,784,940 - 911,086 226,191,489
Total depreciable 259,125,460 2,451,939 (152,265) 2,869,626 264,294,760
Accumulated depreciation
Building and improvements (6,502,120) (750,275) - - (7,252,395)
Land improvements (5,573,407) (29,995) - - (5,603,402)
Machinery and equipment (1,949,662) (153,264) - - (2,102,926)
Autos and trucks (1,821,733) (175,581) 96,169 - (1,901,145)
Office equipment (1,214,994) (120,751) - - (1,335,745)
Infrastructure (62,599,866) (3,372,780) - - (65,972,646)
Total accumulated depreciation (79,661,782) (4,602,646) 96,169 - (84,168,259)
Governmental activities
capital assets, net $ 207,253,759 $ 3,213,169 $ (56,096) $ - $ 210,410,832
Depreciation expense for governmental activities is charged to functions as follows:
Community services $ 456,739
Public works 3,922,028
Community development 7,306
Policy and administration 216,573
Total depreciation for governmental activities $ 4,602,646
59
City of Tigard, Oregon
Notes to Basic Financial Statements
4. Capital Assets (continued):
Capital assets activity for business-type activities for the year ended June 30, 2014, was as follows:
Balances Balances
June 30, 2013 Additions Deletions Transfers June 30, 2014
Non-depreciable
Land $ 5,237,285 $ - $ - $ - $ 5,237,285
Construction in progress 28,971,925 37,390,532 - (619,227) 65,743,230
Total non-depreciable 34,209,210 37,390,532 - (619,227) 70,980,515
Depreciable
Buildings and improvements 2,010,974 - - - 2,010,974
Sewer System 23,964,815 47,500 - 311,804 24,324,119
Storm drainage system 16,931,538 156,098 - - 17,087,636
Water system 61,168,674 55,000 - - 61,223,674
Equipment 1,533,130 - - 307,423 1,840,553
Auto and trucks 1,794,383 - - - 1,794,383
Total depreciable 107,403,514 258,598 - 619,227 108,281,339
Accumulated depreciation
Buildings and improvements (1,103,190) (47,684) - - (1,150,874)
Sewer system (9,419,028) (558,103) - - (9,977,131)
Storm drainage system (6,877,910) (445,605) - - (7,323,515)
Water system (25,952,238) (1,254,919) - - (27,207,157)
Equipment (1,533,130) (16,615) - - (1,549,745)
Auto and trucks (1,486,883) (47,321) - - (1,534,204)
Total accumulated depreciation (46,372,379) (2,370,247) - - (48,742,626)
Business-type activities
capital assets, net $ 95,240,345 $35,278,883 $ - $ - $130,519,228
Depreciation expense for business-type activities is charged to activities as follows:
Sanitary sewer $ 610,716
Storm sewer 455,524
Water 1,304,007
Total depreciation for business-type activities $ 2,370,247
60
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Long-term Debt and Other Debt:
Governmental Activities
GENERAL OBLIGATION BONDS PAYABLE
Bond transactions for the year ended June 30, 2014, and future maturities of bond principal, are as
follows:
Library Bonds: In fiscal year 2010-2011 the city issued $8,655,000 of general obligation bonds for a
current refunding of bonds originally issued in 2002 to build a new library. Interest rates on the
new bonds range from 3%to 4%on specific maturities.
Parks Bonds: In fiscal year 2010-2011 the city issued $17,000,000 of general obligation bonds.
Funds were used to purchase and develop parks. Interest rates range from 3%to 4.75% on specific
maturities.
Transportation Bonds: In fiscal year 2009-2010 the city issued $7,250,000 of full faith and credit
Build America Bonds. Funds were used for street improvements. Interest rate is 4.35%.
Bonds payable transactions for the year are as follows:
Original Outstanding Matured and Outstanding
Issue June 30,2013 Redeemed June 30,2014
Library bonds $ 8,655,000 $ 7,520,000 $ 645,000 $ 6,875,000
Parks bonds 17,000,000 15,980,000 645,000 15,335,000
Transportation bonds 7,250,000 5,305,000 695,000 4,610,000
$ 28,805,000 $ 1,985,000 26,820,000
Unamortized bond premium 239,171
$ 27,059,171
Due within one year $ 2,069,065
Due in more than one year 24,990,106
$ 27,059,171
61
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Long-term Debt and Other Debt (continued):
Future maturities of bond principal and interest are as follows:
Fiscal Year Ending June 30, Principal and Premium Interest
2015 $ 2,069,065 $ 1,065,236
2016 2,128,022 993,933
2017 2,186,947 920,560
2018 2,255,840 845,043
2019 2,324,703 763,313
2020-2024 8,459,894 2,555,412
2025-2029 5,213,972 1,297,825
2030-2031 2,420,728 173,375
Total $ 27,059,171 $ 8,614,697
LOCAL IMPROVEMENT DISTRICT BONDS
Interest rates from 3.9% to 7.25%; payable first from assessments to benefited properties and
second, from the general credit of the city. Original amount of $1,307,969 for 69th Avenue Local
Improvement District and original amount of$1,947,678 for Dartmouth Street Local Improvement
District.
Paid and Called Outstanding FATIRMr
Fiscal Year Due Amount Due During Year June 30, 2014 Interest
2014 $ 457,983 $ (457,983) $ - $ -
2015 72,100 - 72,100 31,034
2016 77,400 - 77,400 25,713
2017 83,100 - 83,100 20,000
2018 89,200 - 89,200 13,866
2019 95,800 - 95,800 7,279
2020 28,156 - 28,156 1,021
Total $ 903,739 $ (457,983) $ 445,756 $ 98,913
62
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Long-term Debt and Other Debt (continued):
CAPITAL LEASE
The city entered into a lease/purchase agreement in fiscal year 2012-2013 to purchase a piece of
street equipment. This lease agreement qualifies as a capital lease for accounting purposes, and
has been capitalized in accordance with accounting principles generally accepted in the United
State of America. The asset was acquired at the purchase price of $71,091. The balance
outstanding at June 30, 2014 is $58,074 and has an effective interest rate of 4.4%. Future
minimum lease payments are as follows:
Fiscal Year EndingJune 30, Principal Interest
2015 $ 13,592 $ 2,564
2016 14,192 1,964
2017 14,818 1,337
2018 15,472 683
Total $ 58,074 $ 6,548
Business-type Activities
NOTE PAYABLE
In fiscal year 2009-2010 the city was awarded $4,796,000 in federal funds under the American
Recovery and Reinvestment Act (ARRA). These funds were distributed to the city as a loan, with
50% constituting an ARRA Forgivable Loan and 50% a low-interest loan under the Safe Drinking
Water Revolving Loan Fund program. These ARRA funds were used to develop a city water
reservoir. In fiscal year 2011-2012 the city drew down the funds that are considered the loan
portion. Transactions for the year are as follows:
Paid and Called Outstanding Future
Fiscal Year Due Amount Due during Year June 30, 2014 Interest
2014 $ 92,379 $ (92,379) $ - $ -
2015 95,150 - 95,150 66,033
2016 98,005 - 98,005 63,179
2017 100,945 - 100,945 60,239
2018 103,973 - 103,973 57,210
2019 107,092 - 107,092 54,091
2020-2024 585,623 - 585,623 220,292
2025-2029 678,899 - 678,899 127,017
2030-2032 431,420 - 431,420 25,353
Total $ 2,293,486 $ (92,379) $ 2,201,107 $673,414
63
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Long-term Debt and Other Debt (continued):
WATER PROJECT FINANCING
Water Revenue Bonds: In fiscal year 2011-2012 the city issued $97,720,000 of revenue bonds to be
used to fund capital projects for the water system. The primary use of these bond proceeds will be
to fund the Lake Oswego/Tigard Water Partnership project. City of Tigard's City Council has
authorized up to $160 million in bonds to be issued to fund this project. Principal payments are
deferred until fiscal year 2016-2017, at which time the city anticipates having the new water source
on line and fully operating.
Revenue from the water system is pledged for repayment of these bonds. Interest rates on the
bonds range from 3%to 5%on specific maturities. The bonds were sold at a premium for a total of
$105,837,891. Future maturities of bond principal and premium and interest are as follows:
Fiscal Year Ending June 30, Principal and Premium Interest
2015 $ 470,602 $ 4,719,850
2016 470,602 4,719,850
2017 2,254,664 4,691,800
2018 2,311,898 4,625,050
2019 2,383,812 4,546,050
2020-2024 13,110,541 21,413,575
2025-2029 15,867,476 18,394,500
2030-2034 19,625,469 14,298,125
2035-2039 24,447,787 9,038,750
2040-2043 23,953,835 2,453,625
Total $ 104,896,686 $88,901,175
Other Long-term Obligations
Accrued compensated absences and applicable changes during the year ended June 30, 2014 are as
follows:
Balances Balances Due in
June 30,2013 Additions Retirements June 30,2014 one year
GOVERNMENTAL ACTIVITIES
Compensated absences $ 1,166,953 $ 1,564,667 $ (1,503,747) $ 1,227,873 $ 920,905
BUSINESS-TYPE ACTIVITIES
Compensated absences $ 113,089 $ 151,357 $ (115,191) $ 149,255 $ 111,941
Expenditures for liquidating compensated absences liabilities are recorded in the General,Special
Revenue, Enterprise,and Internal Service Funds.
64
City of Tigard, Oregon
Notes to Basic Financial Statements
6. Transfers:
Interfund transfers are used to provide funds for debt service, contribute toward the cost of capital
projects and provide operational resources. Transfers for fiscal year ended June 30, 2014 are as
follows:
Total
Governmental Activities Business-type Transfers
Activities
Out
Nonmajor Internal
Gas Tax Funds Service Sewer Water
GOVERNMENTAL ACTIVITIES
General $ - $ 203,961 $ 8,485 $ - $ 27,460 $ 239,906
Gas Tax - 1,643,466 - - - 1,643,466
Nonmajor funds 100,000 3,927,435 292,194 44,376 - 4,364,005
BUSINESS-TYPE ACTIVITIES
Sewer - 94,518 - - 13,413 107,931
Stormwater - 216,902 7,522 212,731 17,878 455,033
Water - 233,771 537,016 285,000 - 1,055,787
Total transfers in $ 100,000 $ 6,320,053 $ 845,217 $542,107 $58,751 7,866,128
RECONCILIATION
Transferred to governmental funds from:
Sewer Fund (net) 50,142
Stormwater Fund 224,424
Water Fund 770,787
Transferred from governmental funds to enterprise funds:
From General Fund to Water Fund (27,460)
From Nonmajor funds to Water Fund -
Total transfers per Statement of Activities $ 1,017,893
These transfers have been eliminated in the government-wide statement of activities other than the net
effect between governmental activities and business-type activities.
65
City of Tigard, Oregon
Notes to Basic Financial Statements
7. Other Post-Employment Benefits (OPEB):
Plan Description
The city is required by Oregon Revised Statute 243.303 to provide retirees (if they elect)with group
health and dental insurance coverage from the date of retirement age to age 65 at the same rates
as provided to current city employees. The Governmental Accounting Standards Board Statement
Number 45 is applicable to the city due to the resulting implicit rate subsidy. This single-employer
"plan" is not a stand-alone plan and there are no separately issued financial statements. The city
does not provide any explicit employee benefits related to this plan.
Funding Policy
The city funds the plan only to the extent of current-year insurance premium requirements on a
pay-as-you-go basis. The city has not established an irrevocable trust to accumulate assets to fund
the cost of the net OPEB obligation that arises from the implicit subsidy. As of the actuarial report
date August 1, 2012, 3 retirees and 9 spouses were participating in the plan.The premium rates are
established each year through negotiation with the various insurance carriers.
Annual OPEB Cost and Net OPEB Obligation
The city's annual OPEB cost is calculated based on the Annual Required Contribution (ARC) of the
city, an amount actuarially determined in accordance with the parameters of GASB 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost
each year and amortize any unfunded actuarial liabilities over a period of 15 years. The following
schedule shows the components of the city's annual OPEB cost for the year, the amount actually
contributed to the plan and the changes in the city's OPEB obligation to the plan:
Annual Required Contribution (ARC) $ 395,015
Interest on prior year net OPEB contribution 40,999
Adjustment to ARC (140,850)
Annual OPEB cost 295,164
Implicit benefit payments (76,998)
Increase in net OPEB obligation 218,166
Net OPEB obligation - beginning of the year 1,171,396
Net OPEB obligation - end of the year $ 1,389,562
66
City of Tigard, Oregon
Notes to Basic Financial Statements
7. Other Post-Employment Benefits (OPEB) (continued):
The city's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the
net OPEB obligation for FY 2013-14, 2012-13 and 2011-12 were as follows:
%of Annual
Fiscal Year Ended Annual OPEB OPEB Cost Net OPEB
June 30, Cost Contributions Obligation
2012 $ 301,167 26% $ 932,180
2013 318,937 25% 1,171,395
2014 295,164 26% 1,389,562
Funding Status and Funding Progress
As of August 1, 2012, the most recent actuarial valuation, the plan was zero percent funded as the
plan is funded on a pay-as-you-go basis. The actuarial liability for benefits was $1,844,990 and also
equaled the unfunded actuarial liability(UAAL).
Schedule of Funding Progress:
Actuarial Actuarial Actuarial Unfunded UAAL as a
Valuation Value of Plan Accrued Liability Funded Covered %of
Date Assets Liability (UAAL) Ratio Payroll Payroll
8/1/2006 $ - $ 1,678,262 $ 1,678,262 0% $ 14,077,852 11.9%
8/1/2008 - 1,725,443 1,725,443 0% 16,248,354 10.6%
8/1/2010 - 1,824,386 1,824,386 0% 17,783,627 10.3%
8/1/2012 - 1,844,990 1,844,990 0% 17,803,391 10.4%
The plan's actuarial valuation involves estimates of amounts and assumptions about the probability
of events far into the future, such as, future employment, mortality and healthcare cost trends.
Amounts determined about the funding status of the plan and the annual required contributions
are subject to periodic revision as actual results for each period are compared with past
expectations and new assumptions are made about the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan and
include the health benefits provided at the time of each valuation and the historical pattern of
sharing of benefit costs between the city and plan members. The actuarial methods and
assumptions include techniques that are designed to reduce the effects of short-term volatility in
actuarial results consistent with the long term perspective of the calculations.
In the August 1, 2012 valuation, the projected unit credit cost method was used. The investment
return for the city was assumed to be 3.5% to reflect the long-term annual investment returns for
the Oregon Local Government Investment Pool and comparable investment vehicles. Medical and
67
City of Tigard, Oregon
Notes to Basic Financial Statements
7. Other Post-Employment Benefits (OPEB) (continued):
vision premium increases were assumed to be 7.25%in the first year, 6.5% in the second year, 6.0%
in the third year, 5.75% for years four through six, 6.0% for year seven, 6.5% for year eight, 6.75%
for years nine through 13; 6.5%for years 14 through 21; 6.25%for year 22, 6%for years 23 through
26, 5.75% for years 27 through 34 and 5.5% thereafter. Dental premium increases were assumed
to be 5.25% per year. The UAAL is being amortized as a level percentage of payroll over a rolling
period of 15 years. A general inflation rate of 2.75% per year was used to develop other economic
assumptions.
8. Retirement Health Insurance Account (RHIA):
Plan Description
As a member of Oregon Public Employees Retirement System (OPERS) the city contributes to the
Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-
sharing multiple-employer defined benefit other postemployment benefit plan administered by
OPERS. RHIA pays a monthly contribution toward the cost of Medicare companion health
insurance premiums of eligible retirees. Oregon Revised Statute (ORS) 238.420 established this
trust fund. Authority to establish and amend the benefit provisions of RHIA reside with the Oregon
Legislature. The plan is closed to new entrants after January 1, 2004. OPERS issues a publicly
available financial report that includes financial statements and required supplementary
information. That report may be obtained by writing to Oregon Public Employees Retirement
System, PO Box 23700,Tigard, OR 97281-3700.
Funding Policy
Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of the
plan members and the participating employers were established and may be amended only by the
Oregon Legislature. ORS require that an amount equal to $60 or the total monthly cost of
Medicare companion health insurance premiums coverage, whichever is less, shall be paid from
the Retirement Health Insurance Account established by the employer, and any monthly cost in
excess of$60 shall be paid by the eligible retired member in the manner provided in ORS 238.410.
To be eligible to receive this monthly payment toward the premium cost the member must: (1)
have eight years or more of qualifying service in PERS at the time of retirement or receive a
disability allowance as if the member had eight years or more of creditable service in PERS, (2)
receive both Medicare Parts A and B coverage, and (3) enroll in a PERS-sponsored health plan. An
eligible surviving spouse or dependent of a deceased PERS retiree may receive the subsidy if he or
she (1) is receiving a retirement benefit or allowance from PERS or (2) was insured at the time the
member died and the member retired before May 1, 1991.
Participating cities are contractually required to contribute to RHIA at a rate assessed each year by
OPERS, currently 0.59 percent of annual covered payroll for Tier 1/Tier 2, and 0.49 percent for
OPSRP. The OPERS Board of Trustees sets the employer contribution rate based on the annual
required contribution (ARC) of the employers, an amount actuarially determined in accordance
with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on
68
City of Tigard, Oregon
Notes to Basic Financial Statements
8. Retirement Health Insurance Account (RHIA) (continued):
an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) of the plan over a period not to exceed thirty years. The city's
contributions to RHIA for the years ended June 30, 2014 and 2013, were included with
contributions to PERS for pension costs.
9. Retirement Plans:
The city contributes to retirement plans on behalf of all eligible employees. At June 30, 2014, the
following employee groups were covered by the following retirement plans:
Group Retirement Plan
Management/Professional Staff International City Managers Association
(non-union) Retirement Corp. (ICMARC) Money Purchase Plan
Oregon Public Employees Union
Employees ICMARC Money Purchase Plan
Tigard Police Officers State of Oregon Public Employees Retirement
System (OPERS)
Oregon Public Employees Retirement Systems (OPERS)
Plan Description
The city contributes to two pension plans administered by the Oregon Public Employees
Retirement System (OPERS). The Oregon Public Employees Retirement Fund applies to the city's
contribution for qualifying employees who were hired before August 29, 2003, and is a cost-sharing
multiple-employer defined benefit pension plan. The Oregon Public Service Retirement Plan
(OSPSRP) is a hybrid successor plan to the OPERF and consists of two programs: The Pension
Program, the defined benefit portion of the plan, applies to sworn police officers hired after August
29, 2003. Benefits are calculated by a formula for members who attain normal retirement age.
The formula takes into account final average salary and years of service. As of January 1, 2004, all
PERS member contributions go into the Individual Account Program (IAP), the defined contribution
portion of the plan. PERS members retain their existing PERS accounts, but any future member
contributions are deposited into the member's IAP, not the member's PERS account.
Both PERS plans provide retirement and disability benefits, post-employment healthcare benefits,
annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS is
administered under Oregon Revised Statute Chapter 238, which establishes the Public Employees
Retirement Board as the governing body of PERS. PERS issues a publicly-available financial report
that includes financial statements and required supplementary information. This report may be
obtained by writing to PERS, PO Box 23700,Tigard, OR 97281-3700 or by calling (503) 598-7377.
69
City of Tigard, Oregon
Notes to Basic Financial Statements
9. Retirement Plans (continued):
Funding Policy
Members of PERS are required to contribute 6% of their salary covered under the plan, which is
invested in the OPSRP Individual Account Program. The employer is allowed to pay any or all of the
employees' contribution in addition to the required employer's contribution. For the fiscal year
ended June 30, 2014, the city contributed all of the 6% contribution on behalf of the employees
covered under PERS. The city is required under ORS 238.225 to contribute at an actuarially-
determined rate for the qualifying employees under the OPSRP plan and the Tier 1 and Tier 2 plan.
The PERS Tier 1 and Tier 2 and the OPSRP rates in effect for the fiscal year ended June 30, 2014
were 15.37% and 9.17% respectively. The contribution requirements for plan members are
established by ORS Chapter 238 and may be amended by an act of the Oregon Legislature.
Annual Pension Cost
The city's contributions to PERS for the years ending June 30, 2014, 2013 and 2012 were
$1,114,106, $1,049,123 and $1,040,634 respectively, which equaled the required contribution for
each of these years.
ICMARC Plans
The city contributes to defined contribution, single employer retirement plans at a specified
percent of gross salary depending on the employment group, for all employees who are not
covered under the Police Pension Plan. Employees may make contributions to these plans. The
city is required to make contributions to these plans under authority of City Council resolution and
the plan documents.
Employees become eligible to participate in the plans after six months of service and vest
immediately. Employees may withdraw funds upon retirement or termination of employment.
Contributions to the plans are made to a fiduciary. Since the plans are administered by the city,the
assets, equity and operations of the plans are accounted for in the General Employees Pension Plan
Fund, a pension trust fund. The plans invest in various money market and equity mutual funds.
Required and actual contributions to the plan were $1,244,072 for the year ended June 30, 2014.
Contributions are calculated as a percentage of gross payroll. The contributions range from 10 to
11 percent for all eligible employees participating in the plans.
Deferred Compensation Plans
The city offers certain employees deferred compensation plans created in accordance with Internal
Revenue Code Section 457. The plans permit employees to defer a portion of their salary until
future years. Contributions for the plans are made to fiduciaries that hold the funds in trust for the
plans' participants. The deferred compensation plans are not considered city funds and are
excluded from the city's financial statements.
70
City of Tigard, Oregon
Notes to Basic Financial Statements
10. Transactions with Clean Water Services of Washington County:
The city collects charges for treatment of city sewage and stormwater on behalf of the Clean Water
Services of Washington County and remits all collections to Clean Water Services, except for
16.31% of sewer service charges collected, 3.98% of sewer connection charges collected and 75%
of stormwater service charges collected, in accordance with an agreement between the city and
Clean Water Services. Payments of $10,233,736 were made to Clean Water Services during fiscal
year 2014 under this agreement.
The net amount retained by the city is reported as revenue in the enterprise funds in the
proprietary funds Statement of Revenues, Expenses and Changes in Fund Net Position. Revenues
are reported net because the city acts in a fiduciary capacity on behalf of Clean Water Services.
11. Risk Management:
The city is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees and others; and natural disasters. The city
purchases commercial insurance to deal with substantially all these risks with nominal deductibles.
Settled claims resulting from these risks have not exceeded commercial insurance coverage in any
of the past three fiscal years.
12. Commitments:
The city had several contracts outstanding at year-end. Many of these contracts are recurring
services or providers of supplies. These contracts may be terminated at any time without cause
provided the contractually-required notification is provided.
The biggest commitment at year-end was an intergovernmental agreement with the City of Lake
Oswego for the Lake Oswego/Tigard Water Partnership. The city's share of the project is currently
estimated at approximately $132 million. As stated in Note 5, the city issued $97.7 million in
revenue bonds during fiscal year 2012 to partially fund the project. The city plans to issue
additional bonds in fiscal year 2015. This is a multi-year project that is anticipated to be complete
in fiscal year 2016.
Other significant contracts outstanding at June 30, 2014 include $500,000 for improvements to the
intersection of 72nd and Dartmouth Streets, and a $1,250,000 contract for pavement overlay in
fiscal year 2015.
In June 2014 the contractor working on the Main Street Sewer encountered difficulties with the
project, including an excavation failure of a stormwater pipe that collapsed and had to be repaired.
The city and the contractor disagreed as to the cause of the failure, leading to the contractor
stopping work on the project. In order to complete the project in conjunction with the repaving of
Main Street, on June 24, 2014 the City Council awarded another contract to a different contractor
in the amount of $329,000. The construction work was completed subsequent to June 30, 2014,
and the city reached a settlement agreement in the amount of$70,000 with the original contractor
in September 2014.
71
City of Tigard, Oregon
Notes to Basic Financial Statements
13. Subsequent events:
On September 2, 2014, the City Center Development Agency (the city's urban renewal agency, a
blended component unit of the city) borrowed $1.3 million from US Bank to buy property located
in the downtown area. On September 5, 2014 the agency purchased the property located at 9110
SW Burnham Street in Tigard. The city has assumed a lease agreement as the lessor that extends
through July 31, 2018 with the option of two additional extensions of three years each.
72
Required Supplementary
Information
73
CITY OF TIGARD, OREGON
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Taxes $ 13,020,535 $ 13,020,535 $ 13,216,208 $ 195,673
Licenses and permits 900,135 900,135 1,357,704 457,569
Intergovernmental revenue 5,575,381 5,885,985 6,032,359 146,374
Charges for services 3,230,653 3,230,653 2,747,937 (482,716)
Fines and forfeitures 1,098,783 1,098,783 860,914 (237,869)
Franchise fees 5,601,400 5,601,400 5,542,647 (58,753)
Interest earnings 103,722 103,722 185,343 81,621
Miscellaneous 24,902 73,754 118,443 44,689
Total revenues 29,555,511 29,914,967 30,061,555 146,588
EXPENDITURES
Community services 20,048,141 20,159,474 19,409,836 749,638
Public works 5,396,382 5,365,765 5,051,835 313,930
Community development 3,094,988 3,260,448 2,836,409 424,039
Policy and administration 802,516 802,516 701,172 101,344
Total expenditures 29,342,027 29,588,203 27,999,252 1,588,951
Change in fund balance
before other financing sources(uses) 213,484 326,764 2,062,303 1,735,539
Other financing sources(uses)
Interfund loan (361,000) (361,000) (361,000) -
Repayment of interfund loan 361,000 361,000 206,049 (154,951)
Transfer out (916,292) (973,292) (239,906) 733,386
Total other financing sources(uses) (916,292) (973,292) (394,857) 578,435
Contingency (1,200,000) (1,135,780) - 1,135,780
Reserve for future expenditure (6,254,045) (6,374,545) - 6,374,545
Change in fund balance (8,156,853) (8,156,853) 1,667,446 9,824,299
Fund balance-beginning of the year 8,156,853 8,156,853 9,710,833 1,553,980
Fund balance-end of the year $ - $ - 11,378,279 $ 11,378,279
Interfund loans are treated as transfers on a budgetary
basis and as receivables on a GAAP basis 604,795
Fund balance-GAAP basis $ 11,983,074
74
CITY OF TIGARD, OREGON
GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Grants $ 636,600 $ 636,600 $ - $ (636,600)
State gas tax 2,910,855 2,910,855 2,797,766 (113,089)
County gas tax 199,397 199,397 181,469 (17,928)
Licenses and permits 2,602 2,602 5,593 2,991
Interest earnings 55,732 55,732 65,168 9,436
Miscellaneous 60,297 60,297 135,589 75,292
Total revenues 3,865,483 3,865,483 3,185,585 (679,898)
EXPENDITURES
Public works 2,244,308 2,244,308 1,862,350 381,958
Debt Service 606,378 606,378 606,378 -
Total expenditures 2,850,686 2,850,686 2,468,728 381,958
Change in fund balance
before other financing sources(uses) 1,014,797 1,014,797 716,857 (297,940)
Other financing sources(uses)
Transfer in 100,000 100,000 100,000 -
Transfer out (2,554,452) (1,949,402) (1,643,466) 305,936
Repayment of interfund loan - - 151,941 151,941
Total other financing sources(uses) (2,454,452) (1,849,402) (1,391,525) 457,877
Contingency (35,000) (35,000) - 35,000
Reserve for future expenditure (2,008) (657,058) - 657,058
Change in fund balance (1,476,663) (1,526,663) (674,668) 851,995
FUND BALANCE BEGINNING OF YEAR 1,476,663 1,526,663 1,659,938 133,275
FUND BALANCE END OF YEAR $ - $ - $ 985,270 $ 985,270
75
CITY OF TIGARD,OREGON
NOTES TO REQUIRED SUPPLEMENTAL INFORMATION
BUDGET TO GAAP RECONCILIATION
for the year ended June 30,2014
Sections of Oregon Revised Statutes (Oregon Budget Law) require most transactions be budgeted on
the modified accrual basis of accounting. However, there are certain transactions where statutory
budget requirements conflict with generally accepted accounting principles (GAAP).
The following discusses the differences between the budget basis and GAAP basis of accounting for the
General Fund and the Gas Tax Fund:
General Gas Tax
Fund Fund
Net change in fund balance- budget basis $ 1,667,446 $ (674,668)
Budgeted expenditures not qualifying as expenditures
or other financing sources under GAAP:
Interfund loans are treated as transfers on a budgetary
basis. Such expenditures are reclassified as
receivables on a GAAP basis.
Repayment (206,049) (151,941)
Additional loan 361,000
Net change in fund balance-GAAP basis $ 1,822,397 $ (826,609)
76
Other Supplementary
Information
CITY OF TIGARD,OREGON
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30,2014
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
ASSETS
Cash and investments $ 6,262,345 $ 1,499,112 $ 9,545,264 $ 17,306,721
Accounts receivable 125,745 - 316,586 442,331
Property tax receivable - 115,058 - 115,058
Assessment liens receivable - 533,182 9,024 542,206
Prepaid Expenses 12,385 - - 12,385
Total assets $ 6,400,475 $ 2,147,352 $ 9,870,874 $ 18,418,701
LIABILITIES
Accounts payable $ 106,268 $ - $ 267,836 $ 374,104
Customer deposits 368,465 - - 368,465
Due to other governments 29,241 - - 29,241
Due to other funds - - 804,795 804,795
Unearned revenue 59,661 - - 59,661
Total liabilities 563,635 - 1,072,631 1,636,266
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues:
Property taxes - 105,140 - 105,140
Assessment liens - 524,011 9,024 533,035
Total deferred inflows of resources - 629,151 9,024 638,175
FUND BALANCES
Non-spendable:
Prepaid expense 12,385 - - 12,385
Restricted for:
Street maintenance and improvements - - 2,228,979 2,228,979
Debt service - 1,518,201 - 1,518,201
Park improvements - - 4,460,982 4,460,982
Underground utilities - - 576,579 576,579
Building inspection 2,080,034 - - 2,080,034
Police services 182,978 - - 182,978
Library improvements 474,648 - - 474,648
Commited for:
Street maintenance and improvements 1,736,934 - 1,370,438 3,107,372
Urban forestry 1,349,861 - - 1,349,861
Assigned to:
City facilities - - 905,166 905,166
Unassigned - - (752,925) (752,925)
Total fund balances 5,836,840 1,518,201 8,789,219 16,144,260
Total liabilities,deferred inflows and fund balances $ 6,400,475 $ 2,147,352 $ 9,870,874 $ 18,418,701
78
CITY OF TIGARD, OREGON
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
NON MAJOR GOVERNMENTAL FUNDS
for the year ended June 30,2014
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
REVENUES
Taxes $ - $ 2,627,006 $ - $ 2,627,006
City gas tax 638,852 - - 638,852
Special assessments - 258,831 - 258,831
Licenses and permits 1,735,578 - - 1,735,578
Intergovernmental revenues 9,895 - 344,707 354,602
Charges for services 145,987 - 3,043,965 3,189,952
Fines and forfeitures 68,379 - - 68,379
Interest earnings 15,774 137,227 20,709 173,710
Miscellaneous revenues 41,261 - 17,522 58,783
Total revenues 2,655,726 3,023,064 3,426,903 9,105,693
EXPENDITURES
Community services 10,499 - - 10,499
Community development 1,383,072 - - 1,383,072
Debt service 319,390 3,056,852 - 3,376,242
Capital outlay - - 7,657,993 7,657,993
Total expenditures 1,712,961 3,056,852 7,657,993 12,427,806
Changes in fund balance before
other financing sources (uses) 942,765 (33,788) (4,231,090) (3,322,113)
OTHER FINANCING SOURCES (USES)
Operating transfer in 180,000 - 6,140,053 6,320,053
Operating transfer out (396,425) (3,752) (3,963,718) (4,363,895)
Resources provided by other funds - - 357,990 357,990
Total other financing sources (uses) (216,425) (3,752) 2,534,325 2,314,148
Changes in fund balance 726,340 (37,540) (1,696,765) (1,007,965)
Fund Balance- Beginning of the year 5,110,500 1,555,741 10,485,984 17,152,225
Fund Balance - End of the year $ 5,836,840 $ 1,518,201 $ 8,789,219 $ 16,144,260
79
Special Revenue Funds
The balance sheet and statement of revenues, expenditures and changes in fund balance of the non-major
special revenue funds are reported in the combining governmental fund statements. Fund statements for the
major special revenue funds are reporting in basic financial statements.
Schedules of revenues, expenditures and changes in fund balance — budget and actual — are also presented
here for each individual special revenue fund.
Major Special Revenue Fund:
Gas Tax Fund–This fund records shared revenues from the State of Oregon and Washington County taxes on
sale of motor vehicle fuel.The city uses these revenues to fund various construction, reconstruction,
improvements, repairs, maintenance and operation of public highways, roads and streets.
Non-major Special Revenue Funds:
City Gas Tax Fund–This fund accounts for revenues generated from Tigard's local gas tax and funds projects for
transportation improvements.
Electrical Inspection Fund–This fund accounts for fees charged for permits, plan check fees and inspection of
electrical improvements.
Building Fund–This fund accounts for fees charged for building inspection and plan review activities.
Criminal Forfeiture Fund–This fund accounts for funds and property seized from criminals.
Urban Forestry Fund–This fund accounts for funds collected from developers in lieu of preserving trees, which
the city can use to plant trees in public right-of-way and other public properties.
Library Fund–This fund accounts for the amounts received from several donations and bequests for various
special projects and artwork.
80
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30,2014
City Gas Electrical Criminal Urban
Tax Inspection Building Forfeiture Forestry Library
Fund Fund Fund Fund Fund Fund Total
ASSETS
Cash and investments $ 1,611,700 $ 149,502 $ 2,084,117 $ 215,853 $ 1,666,936 $ 534,237 $ 6,262,345
Accounts receivable 125,234 - - 439 - 72 125,745
Prepaid expense - - 12,385 - - - 12,385
Total assets $ 1,736,934 $ 149,502 $ 2,096,502 $216,292 $ 1,666,936 $534,309 $6,400,475
LIABILITIES
Accounts payable $ - $ 60 $ 103,709 $ 2,499 $ - $ - $ 106,268
Unearned revenue - - - - - 59,661 59,661
Due to other governments - 603 (2,180) 30,818 - - 29,241
Customer deposits - 24,702 26,691 (3) 317,075 - 368,465
Total liabilities - 25,365 128,220 33,314 317,075 59,661 563,635
FUND BALANCE
Non-spendable:
Prepaid expense - - 12,385 - - - 12,385
Restricted for:
Building inspection - 124,137 1,955,897 - - - 2,080,034
Police services - - - 182,978 - - 182,978
Library improvements - - - - - 474,648 474,648
Committed for:
Street maintenance&improvements 1,736,934 - - - - - 1,736,934
Urban forestry - - - - 1,349,861 - 1,349,861
Total fund balances 1,736,934 124,137 1,968,282 182,978 1,349,861 474,648 5,836,840
Total liabilities and fund balances $ 1,736,934 $ 149,502 $ 2,096,502 $216,292 $ 1,666,936 $534,309 $6,400,475
81
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2014
City Gas Electrical Criminal Urban
Tax Inspection Building Forfeiture Forestry Library
Fund Fund Fund Fund Fund Fund Total
REVENUES
City gas tax $ 638,852 $ - $ - $ - $ - $ - $ 638,852
Licenses and permits - 177,886 1,557,692 - - - 1,735,578
Intergovernmental - - 9,895 - - - 9,895
Fines and forfeitures - - - 68,379 - - 68,379
Tree replacement revenue - - - - 145,987 - 145,987
Miscellaneous revenues 24,479 - 16,782 - - - 41,261
Interest earnings 14,913 - 857 4 - - 15,774
Total revenues 678,244 177,886 1,585,226 68,383 145,987 - 2,655,726
EXPENDITURES
Community services - - - 10,499 - 10,499
Community development - - 1,383,072 - - - 1,383,072
Debt service payments 319,390 - - - - - 319,390
Total expenditures 319,390 - 1,383,072 10,499 - - 1,712,961
Changes in fund balance before
other financing sources(uses) 358,854 177,886 202,154 57,884 145,987 - 942,765
OTHER FINANCING SOURCES(USES)
Operating transfer in - - 180,000 - - - 180,000
Operating transfer out (169,673) (181,763) - (394) (44,595) - (396,425)
Total other financing sources(uses) (169,673) (181,763) 180,000 (394) (44,595) - (216,425)
Changes in fund balance 189,181 (3,877) 382,154 57,490 101,392 - 726,340
Fund balance-Beginning of the year 1,547,753 128,014 1,586,128 125,488 1,248,469 474,648 5,110,500
Fund balance-End of the year $ 1,736,934 $ 124,137 $ 1,968,282 $ 182,978 $ 1,349,861 $ 474,648 $ 5,836,840
82
CITY OF TIGARD, OREGON
CITY GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
City gas tax $ 720,877 $ 720,877 $ 638,852 $ (82,025)
State grants 3,142 3,142 - (3,142)
Recovered expenditures 31,735 31,735 24,479 (7,256)
Interest earnings 34,584 34,584 14,913 (19,671)
Total revenues 790,338 790,338 678,244 (112,094)
EXPENDITURES
Debt service payments 319,390 319,390 319,390 -
Changes in fund balance before
other financing (uses) 470,948 470,948 358,854 (112,094)
OTHER FINANCING (USES)
Transfers out (1,003,778) (1,003,778) (169,673) 834,105
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditure (906,169) (906,169) - 906,169
Total other financing (uses) (1,959,947) (1,959,947) (169,673) 1,790,274
Change in fund balance (1,488,999) (1,488,999) 189,181 1,678,180
Fund balance- Beginning of the year 1,488,999 1,488,999 1,547,753 58,754
Fund balance- End of the year $ - $ - $ 1,736,934 $ 1,736,934
83
CITY OF TIGARD, OREGON
ELECTRICAL INSPECTION FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Licenses and permits $ 174,837 $ 174,837 $ 177,886 $ 3,049
Interest earnings 1,207 1,207 - (1,207)
Total revenues 176,044 176,044 177,886 1,842
OTHER FINANCING (USES)
Transfer out (181,795) (181,795) (181,763) 32
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditure (62,263) (62,263) - 62,263
Total other financing(uses) (294,058) (294,058) (181,763) 112,295
Change in fund balance (118,014) (118,014) (3,877) 114,137
Fund balance- Beginning of the year 118,014 118,014 128,014 10,000
Fund balance- End of the year $ - $ - $ 124,137 $ 124,137
84
CITY OF TIGARD,OREGON
BUILDING FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Licenses and permits $ 1,233,117 $ 1,233,117 $ 1,557,692 $ 324,575
Intergovernmental 8,281 8,281 9,895 1,614
Miscellaneous 10,090 10,090 16,782 6,692
Interest earnings 19,782 19,782 857 (18,925)
Total revenues 1,271,270 1,271,270 1,585,226 313,956
EXPENDITURES
Community development 1,516,579 1,525,079 1,383,072 142,007
Change in fund balance before
other financing sources(uses) (245,309) (253,809) 202,154 455,963
OTHER FINANCING SOURCES(USES)
Transfer in 180,000 180,000 180,000 -
Contingency (200,000) (191,500) - 191,500
Reserve for future expenditure (955,352) (955,352) - 955,352
Total other financing sources(uses) (975,352) (966,852) 180,000 1,146,852
Change in fund balance (1,220,661) (1,220,661) 382,154 1,602,815
Fund balance- Beginning of the year 1,220,661 1,220,661 1,586,128 365,467
Fund balance- End of the year $ - $ - $ 1,968,282 $ 1,968,282
85
CITY OF TIGARD, OREGON
CRIMINAL FORFEITURE FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 1,892 $ 1,892 $ 4 $ (1,888)
Forfeitures 43,000 43,000 68,379 25,379
Total revenues 44,892 44,892 68,383 23,491
EXPENDITURES:
Community services 50,000 50,000 10,499 39,501
Change in fund balance before
other financing(uses) (5,108) (5,108) 57,884 62,992
OTHER FINANCING (USES)
Transfer out (401) (401) (394) 7
Reserve for future expenditure (36,060) (36,060) - 36,060
Total other financing(uses) (36,461) (36,461) (394) 36,067
Change in fund balance (41,569) (41,569) 57,490 99,059
Fund balance- Beginning of the year 41,569 41,569 125,488 83,919
Fund balance- End of the year $ - $ - $ 182,978 $ 182,978
86
CITY OF TIGARD, OREGON
URBAN FORESTRY FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Tree replacement revenue $ 25,000 $ 25,000 $ 145,987 $ 120,987
Interest earnings 4,060 4,060 - (4,060)
Total revenues 29,060 29,060 145,987 116,927
OTHER FINANCING (USES)
Transfer out (156,229) (156,229) (44,595) 111,634
Reserve for future expenditure (924,380) (924,380) - 924,380
Total other financing(uses) (1,080,609) (1,080,609) (44,595) 1,036,014
Change in fund balance (1,051,549) (1,051,549) 101,392 1,152,941
Fund balance - Beginning of the year 1,051,549 1,051,549 1,248,469 196,920
Fund balance - End of the year $ - $ - $ 1,349,861 $ 1,349,861
87
CITY OF TIGARD, OREGON
LIBRARY FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
OTHER FINANCING (USES)
Transfer out $ (100,000) $ (100,000) $ - $ 100,000
Reserve for future expenditure (374,398) (374,398) - 374,398
Change in fund balance (474,398) (474,398) - 474,398
Fund balance- Beginning of the year 474,398 474,398 474,648 250
Fund balance- End of the year $ - $ - $ 474,648 $474,648
88
Debt Service Funds
The balance sheet and statement of revenues, expenditures and changes in fund balance of the non-major
debt service funds are reported in the combining non-major governmental fund statements.
Schedules of revenues, expenditures and changes in fund balance — budget and actual — are also presented
here for each debt service fund.
Non-major Debt Service Funds:
Bancroft Debt Service Fund–This fund accounts for payment of Bancroft improvement bond principal and
interest.The source of revenue is the collection of assessments against benefitted property and interest
earnings.
General Obligation Debt Service Fund–This fund accounts for payment of general obligation bond principal
and interest.The source of revenue is from property taxes and interest earnings.
Urban Renewal Agency Debt Service Fund–This fund accounts for payment of the Tigard Urban Renewal
Agency debt.The source of revenue is from property taxes and interest earnings.
89
CITY OF TIGARD, OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
June 30, 2014
Bancroft Bond General Urban Renewal
Debt Service Obligation Debt Agency Debt
Fund Service Fund Service Fund Total
ASSETS
Cash and investments $ 142,144 $ 523,648 $ 833,320 $ 1,499,112
Property taxes receivable - 99,865 15,193 115,058
Assessment liens receivable 533,182 - - 533,182
Total assets $ 675,326 $ 623,513 $ 848,513 $ 2,147,352
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues:
Assessment liens $ 524,011 $ - $ - 524,011
Property taxes - 91,185 13,955 105,140
Total deferred inflows of resources 524,011 91,185 13,955 629,151
Fund Balance restricted for debt service 151,315 532,328 834,558 1,518,201
Total deferred inflows and fund balances $ 675,326 $ 623,513 $ 848,513 $ 2,147,352
90
CITY OF TIGARD,OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
for the year ended June 30, 2014
Bancroft Bond General Urban Renewal
Debt Service Obligation Debt Agency Debt
Fund Service Fund Service Fund Total
REVENUES
Taxes $ - $ 2,297,075 $ 329,931 $ 2,627,006
Collection of Bonded Assessments 258,831 - - 258,831
Interest earnings 74,915 34,196 28,116 137,227
Total revenues 333,746 2,331,271 358,047 3,023,064
EXPENDITURES
Debt service 502,152 2,193,700 361,000 3,056,852
Change in fund balance before
other financing(uses): (168,406) 137,571 (2,953) (33,788)
OTHER FINANCING (USES)
Transfers out (3,752) - - (3,752)
Change in fund balance (172,158) 137,571 (2,953) (37,540)
Fund balance- Beginning of the year 323,473 394,757 837,511 1,555,741
Fund balance- End of the year $ 151,315 $ 532,328 $ 834,558 $ 1,518,201
91
CITY OF TIGARD, OREGON
BANCROFT BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Collection of bonded assessments $ 120,000 $ 120,000 $ 258,831 $ 138,831
Interest earnings 37,468 37,468 74,915 37,447
Total revenues 157,468 157,468 333,746 176,278
EXPENDITURES
Debt service 499,997 499,997 502,152 (2,155)
Change in fund balance before
other financing(uses) (342,529) (342,529) (168,406) 174,123
OTHER FINANCING (USES)
Transfer out (3,821) (3,821) (3,752) 69
Reserve for future expenditure (65,042) (65,042) - 65,042
Total other financing(uses) (68,863) (68,863) (3,752) 65,111
Change in fund balance (411,392) (411,392) (172,158) 239,234
Fund balance- Beginning of the year 411,392 411,392 323,473 (87,919)
Fund balance- End of the year $ - $ - $ 151,315 $ 151,315
92
CITY OF TIGARD,OREGON
GENERAL OBLIGATION DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Taxes $ 2,317,508 $ 2,317,508 $ 2,297,075 $ (20,433)
Interest earnings 4,612 4,612 34,196 29,584
Total revenues 2,322,120 2,322,120 2,331,271 9,151
EXPENDITURES:
Debt service 2,193,701 2,193,701 2,193,700 1
Reserve for future expenditure 588,285 588,285 - 588,285
Total expenditures 2,781,986 2,781,986 2,193,700 588,286
Change in fund balance (459,866) (459,866) 137,571 597,437
Fund balance- Beginning of the year 459,866 459,866 394,757 (65,109)
Fund balance- End of the year $ - $ - $ 532,328 $ 532,328
93
CITY OF TIGARD, OREGON
URBAN RENEWAL AGENCY DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES:
Property taxes $ 300,940 $ 300,940 $ 329,931 $ 28,991
Interest earnings - - 28,116 28,116
Total revenues 300,940 300,940 358,047 57,107
EXPENDITURES:
Debt service 361,000 361,000 361,000 -
Reserve for future expenditure 666,388 666,388 - (666,388)
Total expenditures 1,027,388 1,027,388 361,000 (666,388)
Change in fund balance (726,448) (726,448) (2,953) 723,495
Fund balance- Beginning of the year 726,448 726,448 837,511 111,063
Fund balance- End of the year $ - $ - $ 834,558 $ 834,558
94
Capital J Pro ' ect Funds
Combining statements for all individual non-major projects funds are reported here.The combined
totals are reported in the combining non-major governmental fund statements.
Schedules of revenues, expenditures and changes in fund balance— budget and actual — are also
presented here for each capital projects fund.
Non-major Capital Projects Funds:
Facility Fund —This fund accounts for monies set aside for future major city facility improvements.
Transportation Development Tax Fund —This fund accounts for traffic impact fees collected on
roads within the city's urban service areas.This fund replaced TIF starting July 1, 2009.
Traffic Impact Fee Fund —This fund accounts for traffic impact fees collected on roads within the
city's urban service areas prior to July 1, 2009. Funds will be used for highways and transit capital
improvements approved in the city's Capital Improvement Plan (CIP).
Underground Utility Fund —This fund accounts for monies received from developers for future
underground utility improvements.
Street Maintenance Fee Fund —This fund tracks the revenues and expenditures for the Street
Maintenance Fee.This fee provides revenue designated for use in the maintenance of existing streets.
Parks Capital Fund —This fund accounts for system development charges for major improvements to
recreational facilities within the city.
Parks Bond Fund —This fund was created after voters approved a $17 million parks bond for
purchase of land and green spaces to be used for parks.
Parks SDC Fund —This fund tracks the revenues associated with the collection of Parks System
Development Charges.These funds are used to fund the acquisition, development and expansion of
additional recreation spaces and facilities that are included in the city's Park Master Plan.
Transportation Capital Improvement Project Fund—This fund tracks all capital improvement
projects that are funded with transportation revenues; including Gas Tax, Traffic Impact Fees and
Transportation Development Tax.
Urban Renewal Agency—This fund was established in FY 2007-08 for the creation of a new urban
renewal agency to improve downtown Tigard.
95
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
June 30,2014
Transportation Street Transportation Urban Renewal
Development Traffic Impact Underground Maintenance Parks Capital Parks Bond CIP Agency Capital
Facility Fund Tax Fund Fee Fund Utility Fund Fee Fund Fund Fund Parks SDC Fund Fund Projects Fund Total
ASSETS
Cash and investments $ 912,958 $ 1,474,749 $ 506,899 $ 576,579 $ 1,193,795 $ 591,232 $ 2,395,068 $ 1,568,420 $ 322,917 $ 2,647 $ 9,545,264
Accounts receivable - - - - 241,126 460 - - - 75,000 316,586
Assessments liens receivable - - 9,024 - - - - - - - 9,024
Total assets $ 912,958 $ 1,474,749 $ 515,923 $ 576,579 $ 1,434,921 $ 591,692 $ 2,395,068 $ 1,568,420 $ 322,917 $ 77,647 $ 9,870,874
LIABILITIES
Accounts payable and accrued liabilities $ 7,792 $ - $ - $ - $ 64,483 $ 94,198 $ - $ - $ 75,586 $ 25,777 $ 267,836
Interfund loans - - - - - - - - - 804,795 804,795
Total liabilities 7,792 - - - 64,483 94,198 - - 75,586 830,572 1,072,631
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-assessment liens - - 9,024 - - - - - - - 9,024
Total deferred inflows of resources - - 9,024 - - - - - - - 9,024
FUND BALANCES(DEFICIT)
Restricted for:
Street maintenance and improvements - 1,474,749 506,899 - - - - - 247,331 - 2,228,979
Park improvements - - - - - 497,494 2,395,068 1,568,420 - - 4,460,982
Underground utilities - - - 576,579 - - - - - - 576,579
Committed for:
Street maintenance and improvements - - - - 1,370,438 - - - - - 1,370,438
Assigned to:
City facilities 905,166 - - - - - - - - - 905,166
Unassigned - - - - - - - - - (752,925) (752,925)
Total fund balances(deficit) 905,166 1,474,749 506,899 576,579 1,370,438 497,494 2,395,068 1,568,420 247,331 (752,925) 8,789,219
Total liabilities,deferred inflows of resources
and fund balance $ 912,958 $ 1,474,749 $ 515,923 $ 576,579 $ 1,434,921 $ 591,692 $ 2,395,068 $ 1,568,420 $ 322,917 $ 77,647 $ 9,870,874
96
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2014
Transportation Street Transportation Urban Renewal
Development Traffic Impact Underground Maintenance Parks Capital Parks Bond CIP Agency Capital
Facility Fund Tax Fund Fee Fund Utility Fund Fee Fund Fund Fund Parks SDC Fund Fund Projects Fund Total
REVENUES:
Charges for services $ - $ 517,727 $ 33,339 $ 46,617 $ 2,008,333 $ - $ - $ 437,949 $ - $ - $ 3,043,965
Intergovernmental revenue - - - - - 127,999 - - 116,708 100,000 344,707
Interest earnings 139 1,411 1,588 - - - 17,571 - - - 20,709
Miscellaneous revenues - - - - 5,000 11,652 - - - 870 17,522
Total revenues 139 519,138 34,927 46,617 2,013,333 139,651 17,571 437,949 116,708 100,870 3,426,903
EXPENDITURES:
Capital projects 64,867 - - - 1,660,180 2,104,416 - - 3,218,069 610,461 7,657,993
Change in fund balance before
other financing sources (64,728) 519,138 34,927 46,617 353,153 (1,964,765) 17,571 437,949 (3,101,361) (509,591) (4,231,090)
OTHER FINANCING SOURCES(USES)
Transfers in 318,707 - - - - 2,545,223 - - 3,276,123 - 6,140,053
Transfers out (19,036) (875,840) (359,140) (37,593) (206,928) (98,594) (1,537,761) (828,826) - - (3,963,718)
Resources provided by other funds - - - - - - - - - 357,990 357,990
Total other financing sources(uses) 299,671 (875,840) (359,140) (37,593) (206,928) 2,446,629 (1,537,761) (828,826) 3,276,123 357,990 2,534,325
Change in fund balance 234,943 (356,702) (324,213) 9,024 146,225 481,864 (1,520,190) (390,877) 174,762 (151,601) (1,696,765)
Fund balance-Beginning of the year 670,223 1,831,451 831,112 567,555 1,224,213 15,630 3,915,258 1,959,297 72,569 (601,324) 10,485,984
Fund balance-End of the year $ 905,166 $ 1,474,749 $ 506,899 $ 576,579 $ 1,370,438 $ 497,494 $ 2,395,068 $ 1,568,420 $ 247,331 $ (752,925) $ 8,789,219
97
CITY OF TIGARD,OREGON
FACILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30,2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 3,212 $ 3,212 $ 139 $ (3,073)
EXPENDITURES
Capital projects 747,585 747,585 64,867 682,718
Change in fund balance before
other financing sources(uses) (744,373) (744,373) (64,728) 679,645
OTHER FINANCING SOURCES(USES)
Transfer in 1,104,576 1,104,576 318,707 (785,869)
Transfer out (19,384) (19,384) (19,036) 348
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditure (1,042,776) (1,042,776) - 1,042,776
Total other financing sources(uses) (7,584) (7,584) 299,671 307,255
Change in fund balance (751,957) (751,957) 234,943 986,900
Fund balance-Beginning of the year 751,957 751,957 670,223 (81,734)
Fund balance-End of the year $ - $ - $ 905,166 $ 905,166
98
CITY OF TIGARD,OREGON
TRANSPORTATION DEVELOPMENT TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 176,678 $ 176,678 $ 517,727 $ 341,049
Interest earnings 11,279 11,279 1,411 (9,868)
Total revenues 187,957 187,957 519,138 331,181
OTHER FINANCING (USES)
Transfer out (779,724) (1,504,774) (875,840) 628,934
Contingency (250,000) (250,000) - 250,000
Reserve for future expenditure (52,422) (52,422) - 52,422
Total other financing(uses) (1,082,146) (1,807,196) (875,840) 931,356
Change in fund balance (894,189) (1,619,239) (356,702) 1,262,537
Fund balance-Beginning of the year 894,189 1,619,239 1,831,451 212,212
Fund balance-End of the year $ - $ - $ 1,474,749 $ 1,474,749
99
CITY OF TIGARD, OREGON
TRAFFIC IMPACT FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30,2014
u•geted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ - $ - $ 33,339 $ 33,339
Interest earnings 4,000 4,000 1,588 (2,412)
Total revenues 4,000 4,000 34,927 30,927
OTHER FINANCING (USES)
Transfers out (768,307) (818,307) (359,140) 459,167
Contingency (8,147) (8,147) - 8,147
Total other financing(uses) (776,454) (826,454) (359,140) 467,314
Change in fund balance (772,454) (822,454) (324,213) 498,241
Fund balance- Beginning of the year 772,454 822,454 831,112 8,658
Fund balance- End of the year $ - $ - $ 506,899 $506,899
ioo
CITY OF TIGARD, OREGON
UNDERGROUND UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 15,629 $ 15,629 $ 46,617 $ 30,988
Interest earnings 7,160 7,160 - (7,160)
Total revenues 22,789 22,789 46,617 23,828
OTHER FINANCING (USES)
Transfer out (252,089) (252,089) (37,593) 214,496
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditure (275,882) (275,882) - 275,882
Total other financing (uses) (577,971) (577,971) (37,593) 540,378
Change in fund balance (555,182) (555,182) 9,024 564,206
Fund balance- Beginning of the year 555,182 555,182 567,555 12,373
Fund balance- End of the year $ - $ - $ 576,579 $ 576,579
101
CITY OF TIGARD, OREGON
STREET MAINTENANCE FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,941,234 $ 1,941,234 $ 2,008,333 $ 67,099
Interest earnings 2,043 2,043 - (2,043)
Miscellaneous - - 5,000 5,000
Total revenues 1,943,277 1,943,277 2,013,333 70,056
EXPENDITURES
Capital projects 1,660,000 1,725,000 1,660,180 64,820
Change in fund balance before
other financing(uses) 283,277 218,277 353,153 134,876
OTHER FINANCING (USES)
Transfer out (208,883) (208,883) (206,928) 1,955
Contingency (200,000) (135,000) - 135,000
Reserve for future expenditure (981,311) (981,311) - 981,311
Total other financing(uses) (1,390,194) (1,325,194) (206,928) 1,118,266
Change in fund balance (1,106,917) (1,106,917) 146,225 1,253,142
Fund balance- Beginning of the year 1,106,917 1,106,917 1,224,213 117,296
Fund balance- End of the year $ - $ - $ 1,370,438 $ 1,370,438
102
CITY OF TIGARD, OREGON
PARKS CAPITAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental $ 163,074 $ 163,074 $ 127,999 $ (35,075)
Interest earnings 3,015 3,015 - (3,015)
Miscellaneous - - 11,652 11,652
Total revenues 166,089 166,089 139,651 (26,438)
EXPENDITURES
Capital projects 7,584,647 7,674,277 2,104,416 5,569,861
Change in fund balance before
other financing sources (uses) (7,418,558) (7,508,188) (1,964,765) 5,543,423
OTHER FINANCING SOURCES (USES)
Transfer in 7,421,573 7,511,203 2,545,223 (4,965,980)
Transfer out (100,397) (100,397) (98,594) 1,803
Reserve for future expenditure (42,097) (42,097) - 42,097
Total other financing sources (uses) 7,279,079 7,368,709 2,446,629 (4,922,080)
Change in fund balance (139,479) (139,479) 481,864 621,343
Fund balance- Beginning of the year 139,479 139,479 15,630 (123,849)
Fund balance- End of the year $ - $ - $ 497,494 $ 497,494
103
CITY OF TIGARD,OREGON
PARKS BOND FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 4,020 $ 4,020 $ 17,571 $ 13,551
OTHER FINANCING (USES)
Transfer out (4,876,088) (4,413,008) (1,537,761) 2,875,247
Reserve for future expenditure - (463,080) - 463,080
Total other financing(uses) (4,876,088) (4,876,088) (1,537,761) 3,338,327
Change in fund balance (4,872,068) (4,872,068) (1,520,190) 3,351,878
Fund balance-Beginning of the year 4,872,068 4,872,068 3,915,258 (956,810)
Fund balance-End of the year $ - $ - $ 2,395,068 $ 2,395,068
104
CITY OF TIGARD, OREGON
PARKS SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES:
Charges for services $ 257,825 $ 663,905 $ 437,949 $ (225,956)
Interest earnings 19,782 19,782 - (19,782)
Total revenues 277,607 683,687 437,949 (245,738)
OTHER FINANCING (USES)
Transfer out (2,065,005) (2,510,715) (828,826) 1,681,889
Contingency (75,000) (35,370) - 35,370
Reserve for future expenditure (11,034) (11,034) - 11,034
Total other financing(uses) (2,151,039) (2,557,119) (828,826) 1,728,293
Change in fund balance (1,873,432) (1,873,432) (390,877) 1,482,555
Fund balance- Beginning of the year 1,873,432 1,873,432 1,959,297 85,865
Fund balance- End of the year $ - $ - $ 1,568,420 $ 1,568,420
105
CITY OF TIGARD,OREGON
TRANSPORTATION CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenue $ - $ - $ 116,708 $ 116,708
EXPENDITURES:
Capital projects 5,677,081 5,747,081 3,218,069 2,529,012
Change in fund balance before
other financing sources(uses) (5,677,081) (5,747,081) (3,101,361) 2,645,720
OTHER FINANCING SOURCES (USES)
Transfer in 5,677,081 5,747,081 3,276,123 (2,470,958)
Reserve for future expenditures (200,369) (200,369) - 200,369
Total other financing sources(uses) 5,476,712 5,546,712 3,276,123 (2,270,589)
Change in fund balance (200,369) (200,369) 174,762 375,131
Fund balance- Beginning of the year 200,369 200,369 72,569 (127,800)
Fund balance- End of the year $ - $ - $ 247,331 $ 247,331
106
CITY OF TIGARD,OREGON
URBAN RENEWAL AGENCY CAPITAL PROJECT FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30,2014
u ge ed Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental Revenue $ - $ 100,000 $ 100,000 $ -
Miscellaneous - - 870 870
Total revenues - 100,000 100,870 870
EXPENDITURES
Capital projects 581,000 681,000 610,461 70,539
Change in fund balance before
other financing sources (581,000) (581,000) (509,591) 71,409
OTHER FINANCING SOURCES
Debt proceeds 361,000 361,000 361,000 -
Change in fund balance (220,000) (220,000) (148,591) 71,409
Fund balance- Beginning of the year 220,000 220,000 200,461 (19,539)
Fund balance- End of the year $ - $ - 51,870 $ 51,870
Reconciliation of budgetary fund balance
to GAAP basis fund balance:
Budgeted resources not qualifying as revenues or other
financing sources under GAAP:
Interfund loans are treated as revenue on a
budgetary basis. Transfers in are reclassified
as payables on a GAAP basis. (804,795)
Fund balance-GAAP basis $ (752,925)
107
Enterprise Funds
For GAAP reporting purposes,the city reports three proprietary funds as major funds.These funds are the
Sanitary Sewer Fund, the Storm Sewer Fund (which consists of the Storm Sewer Fund and the Water
Quality/Quantity Fund) and the Water Fund (which includes the Water Fund, Water SDC Fund, Water CIP Fund
and Water Debt Service Fund). However,for budgetary and legal purposes,these funds are accounted for
separately as listed below.
All of the city's enterprise funds meet the criteria for major fund reporting and are reported in the basic financial
statements.
Schedules or revenues and changes in fund net assets — budget and actual are presented here for each
individual enterprise fund as required by Oregon regulations.
Major Enterprise Funds:
Sanitary Sewer Fund–This fund accounts for the city's sewer utility operations.
Stormwater Fund–This fund accounts for the city's storm drainage operations.
Water Quality/Quantity Fund–This fund accounts for the fees charged to new development for the additional
impact on the stormwater system.
Water Fund–This fund accounts for the city's water operations.
Water SDC Fund–This fund accounts for the water impact fees charged to new development.
Water CIP Fund–This fund tracks capital improvements for the water system.
Water Debt Service Fund–This fund tracks debt service on the water revenue bonds and long-term note.
108
CITY OF TIGARD,OREGON
SANITARY SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30,2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,484,277 $ 1,484,277 $ 1,727,206 $ 242,929
Connection fees 25,750 25,750 15,761 (9,989)
Intergovernmental revenue 408,050 408,050 - (408,050)
Miscellaneous 128,788 128,788 65,858 (62,930)
Interest earnings 100,333 100,333 - (100,333)
Total revenues 2,147,198 2,147,198 1,808,825 (338,373)
EXPENDITURES
Public works 1,973,373 1,931,303 1,732,462 198,841
Capital projects 4,944,653 5,924,653 1,555,614 4,369,039
Total expenditures 6,918,026 7,855,956 3,288,076 4,567,880
Change in fund balance before
other financing sources(uses) (4,770,828) (5,708,758) (1,479,251) 4,229,507
OTHER FINANCING SOURCES(USES)
Transfers in 936,000 1,391,000 542,107 (848,893)
Transfers out (230,149) (230,149) (107,931) 122,218
Contingency (400,000) (220,000) - 220,000
Reserve for future expenditure (1,387,142) (1,429,212) - 1,429,212
Total other financing sources(uses) (1,081,291) (488,361) 434,176 922,537
Change in fund balance (5,852,119) (6,197,119) (1,045,075) 5,152,044
Fund balance- Beginning of the year 5,852,119 6,197,119 6,275,392 78,273
Fund balance-End of the year $ - $ - $ 5,230,317 $ 5,230,317
109
CITY OF TIGARD, OREGON
SANITARY SEWER FUND
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30, 2014
Operating and
Non-Operating Expenditures/
Revenues Expenses
Budgetary basis $ 2,350,932 $ 3,396,007
Unavailable revenue (30,333) -
Contributed capital 47,501 -
Change in accrued compensated absences - 646
Expenditures capitalized - (1,286,909)
Depreciation expense - 610,716
Net OPEB obligation - 5,096
Operating and non-operating revenue
and expenses - GAAP basis $ 2,368,100 $ 2,725,556
no
CITY OF TIGARD, OREGON
STORMWATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,053,830 $ 2,329,830 $ 2,733,346 $ 403,516
Miscellaneous - - 15,096 15,096
Interest earnings 7,936 7,936 - (7,936)
Total revenues 2,061,766 2,337,766 2,748,442 410,676
EXPENDITURES
Public works 1,442,387 1,554,457 1,448,387 106,070
Capital projects 1,165,375 1,165,375 230,273 935,102
Total expenditures 2,607,762 2,719,832 1,678,660 1,041,172
Change in fund balance before
other financing(uses) (545,996) (382,066) 1,069,782 1,451,848
OTHER FINANCING (USES)
Transfers out (478,916) (598,916) (412,071) 186,845
Contingency (100,000) (57,930) - 57,930
Reserve for future expenditures (1,271,735) (1,477,735) - 1,477,735
Total other financing(uses) (1,850,651) (2,134,581) (412,071) 1,722,510
Change in fund balance (2,396,647) (2,516,647) 657,711 3,174,358
Fund balance- Beginning of the year 2,396,647 2,516,647 2,881,278 364,631
Fund balance- End of the year $ - $ - $ 3,538,989 $ 3,538,989
111
CITY OF TIGARD, OREGON
WATER QUALITY/QUANTITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 4,250 $ 4,250 $ 4,875 $ 625
Interest earnings 15,102 15,102 - (15,102)
Total revenues 19,352 19,352 4,875 (14,477)
OTHER FINANCING (USES)
Transfers out (943,659) (943,659) (42,962) 900,697
Reserve for future expenditures (318,062) (318,062) - 318,062
Total other financing (uses) (1,261,721) (1,261,721) (42,962) 1,218,759
Change in fund balance (1,242,369) (1,242,369) (38,087) 1,204,282
Fund balance- Beginning of the year 1,242,369 1,242,369 1,291,131 48,762
Fund balance- End of the year $ - $ - $ 1,253,044 $ 1,253,044
112
CITY OF TIGARD, OREGON
STORMWATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30, 2014
Operating and
Non-operating Expenditures/
Revenues Expenses
Stormwater $ 2,748,442 $ 2,090,731
Water Quality/ Quantity 4,875 42,962
Total, budgetary basis 2,753,317 2,133,693
Contributed capital 156,098 -
Change in accrued compensated absences - 4,788
Expenditures capitalized - (185,517)
Depreciation expense - 455,524
Net OPEB obligation - 5,096
Operating and non-operating
revenue and expenses - GAAP basis $ 2,909,415 $ 2,413,584
113
CITY OF TIGARD, OREGON
WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30,2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 14,253,371 $ 14,253,371 $ 15,985,607 $ 1,732,236
Interest earnings 30,644 30,644 - (30,644)
Miscellaneous - - 39,819 39,819
Total revenues 14,284,015 14,284,015 16,025,426 1,741,411
EXPENDITURES
Public works 8,139,852 8,351,852 7,239,686 1,112,166
Change in fund balance
before other financing sources(uses) 6,144,163 5,932,163 8,785,740 2,853,577
OTHER FINANCING SOURCES (USES)
Transfer in 58,751 58,751 58,751 -
Transfers out (5,735,926) (5,785,926) (5,318,083) 467,843
Contingency (500,000) (238,000) - 238,000
Reserve for future expenditure (9,668,491) (9,668,491) - 9,668,491
Total other financing sources(uses) (15,845,666) (15,633,666) (5,259,332) 10,374,334
Change in fund balance (9,701,503) (9,701,503) 3,526,408 13,227,911
Fund balance- Beginning of the year 9,701,503 9,701,503 12,707,092 3,005,589
Fund balance-End of the year $ - $ - $ 16,233,500 $ 16,233,500
114
CITY OF TIGARD, OREGON
WATER SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
System development charges $ 361,575 $ 361,575 $ 832,111 $ 470,536
Interest earnings 233 233 - (233)
Total revenues 361,808 361,808 832,111 470,303
OTHER FINANCING (USES)
Operating transfer out (165) (1,027,165) (162) 1,027,003
Contingency (100,000) (100,000) - 100,000
Reserve for future expenditure (1,887,547) (1,887,547) - 1,887,547
Total other financing (uses) (1,987,712) (3,014,712) (162) 3,014,550
Change in fund balance (1,625,904) (2,652,904) 831,949 3,484,853
Fund balance- Beginning of the year 1,625,904 2,652,904 3,078,052 425,148
Fund balance- End of the year $ - $ - $ 3,910,001 $ 3,910,001
115
CITY OF TIGARD, OREGON
WATER CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30,2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Miscellaneous $ - $ - $ 54,327 $ 54,327
Interest earnings 13,096 13,096 234,774 221,678
Total revenues 13,096 13,096 289,101 276,005
EXPENDITURES
Capital projects 75,862,443 76,254,443 34,747,400 41,507,043
Change in fund balance
before other financing sources(uses) (75,849,347) (76,241,347) (34,458,299) 41,783,048
OTHER FINANCING SOURCES (USES)
Operating transfer in 702,443 1,779,443 203,278 (1,576,165)
Operating transfers out (546,672) (831,672) (821,854) 9,818
Reserve for future expenditures (8,538,152) (8,938,152) - 8,938,152
Total other financing sources(uses) (8,382,381) (7,990,381) (618,576) 7,371,805
Change in fund balance (84,231,728) (84,231,728) (35,076,875) 49,154,853
Fund balance- Beginning of the year 84,231,728 84,231,728 83,276,924 (954,804)
Fund balance-End of the year $ - $ - $ 48,200,049 $ 48,200,049
116
CITY OF TIGARD,OREGON
WATER DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ - $ - $ 35,641 $ 35,641
EXPENDITURES
Debt Service 4,881,034 4,881,034 4,881,033 1
Change in fund balance before
other financing sources(uses) (4,881,034) (4,881,034) (4,845,392) 35,642
OTHER FINANCING SOURCES(USES)
Operating transfer in 4,881,034 4,881,034 4,881,033 (1)
Reserve for future expenditure (6,763,142) (6,763,142) - 6,763,142
Total other financing sources(uses) (1,882,108) (1,882,108) 4,881,033 6,763,141
Change in fund balance (6,763,142) (6,763,142) 35,641 6,798,783
Fund balance- Beginning of the year 6,763,142 6,763,142 6,605,800 (157,342)
Fund balance- End of the year $ - $ - $ 6,641,441 $ 6,641,441
117
CITY OF TIGARD, OREGON
WATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30, 2014
Operating and
Non-operating Expenditures/
Revenues Expenses
Water $ 16,084,177 $ 7,239,686
Water SDC 832,111 -
Water CIP 289,101 34,747,400
Water Debt Service 35,641 4,881,033
Total, budgetary basis 17,241,030 46,868,119
Contributed capital 55,000 -
Elimination of intra-water transfers - 1,055,788
Change in accrued compensated absences - 30,732
Expenditures capitalized - (34,653,899)
Principal payments - (92,379)
Change in accrued interest - (1,617)
Amortization of water revenue bond premium - (470,602)
Interest capitalized - (1,264,208)
Depreciation expense - 1,304,007
Net OPEB Obligation - 10,193
Operating and non-operating
revenue and expenses - GAAP basis $ 17,296,030 $ 12,786,134
118
CITY OF TIGARD, OREGON
ENTERPRISE FUNDS
RECONCILIATION OF BUDGETARY FUND BALANCE TO
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION
June 30, 2014
Total Total
Sanitary Sewer Stormwater
Sanitary Sewer Fund $ 5,230,317 $ - $ -
Stormwater Fund - 3,538,989
-
Water Quality/Quantity Fund - 1,253,044
-
Water Fund - - 16,233,500
Water SDC Fund - - 3,910,001
Water CIP Fund - - 48,200,049
Water Debt Service Fund - - 6,641,441
Fund balance- budget basis 5,230,317 4,792,033 74,984,991
Adjustments from budgetary basis to
generally accepted accounting principles basis:
Capital assets, net 16,519,232 10,564,495 103,435,501
Sewer Funds Payable (21,780) - -
Assets held for resale 185,021 260,021 -
Unavailable revenue 130,997 - -
Accrued vacation payable (27,929) (20,347) (100,975)
Long-term debt - - (109,102,917)
Interfund loans 200,000 - -
OPEB Obligation (30,209) (33,902) (64,340)
Total Net Position -GAAP basis $ 22,185,649 $ 15,562,300 $ 69,152,260
119
Internal Service Funds
Combining statements for internal service funds are reported here.The combined totals are reported alongside
the enterprise funds in the basic financial statements.
Schedules of revenues, expenses and changes in fund net assets — budget and actual — are presented here for
each internal service fund as required by Oregon regulations.
Internal Service Funds:
Central Services Fund—This fund accounts for the central administrative functions within the city.
Fleet/Property Management Fund—This fund accounts for all activity related to the fleet maintenance and
property management divisions in the city.
Insurance Fund—Records refunds of prior years' workers' compensation premiums and other insurance related
revenues, and helps pay for higher deductibles that lowers overall insurance costs for the city.
120
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
June 30,2014
Fleet/Property
Central Services Management Insurance
Fund Fund Fund Total
ASSETS
Cash and investments $ 836,390 $ 152,171 $ 858,592 $ 1,847,153
Accounts Receivable 19,092 2,153 21,245
Prepaid Expense 108,050 - - 108,050
Inventory - 54,986 - 54,986
Total assets 963,532 209,310 858,592 2,031,434
LIABILITIES
Accounts payable and accrued liabilities 297,169 79,067 - 376,236
Accrued compensated absences 241,190 43,235 - 284,425
Net OPEB obligation 222,569 15,009 - 237,578
Total liabilities 760,928 137,311 - 898,239
NET POSITION
Net position,unrestricted $ 202,604 $ 71,999 $ 858,592 $ 1,133,195
121
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
for the year ended June 30,2014
Fleet/Property
Central Services Management Insurance
Fund Fund Fund Total
OPERATING REVENUES
Charges for services $ 6,493,303 $ 1,484,616 $ - $ 7,977,919
Miscellaneous 64,408 3,784 47,689 115,881
Total operating revenues 6,557,711 1,488,400 47,689 8,093,800
OPERATING EXPENSES
Salaries and wages 4,311,411 463,988 - 4,775,398
Contracted services 639,824 388,008 4,305 1,032,137
General, administrative and other 1,434,513 640,575 15,059 2,090,147
Total operating expenses 6,385,748 1,492,571 19,364 7,897,682
Net income(loss) 171,964 (4,171) 28,325 196,118
Net position-Beginning of year 30,640 76,170 830,267 937,077
Net position-End of year $ 202,604 $ 71,999 $ 858,592 $ 1,133,195
122
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
for the year ended June 30,2014
Fleet/Property
Central Services Management Insurance
Fund Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 6,492,145 $ 1,482,496 $ - $ 7,974,641
Payments to suppliers (2,090,840) (1,038,046) (19,364) (3,148,250)
Payments to employees (4,284,497) (458,377) - (4,742,874)
Other receipts 48,460 3,784 47,798 100,042
Net cash provided(used)by operating activities 165,268 (10,143) 28,434 183,559
Net increase in cash and investments 165,268 (10,143) 28,434 183,559
Cash and investments--beginning of the year 671,122 162,314 830,158 1,663,594
Cash and investments--end of the year $ 836,390 $ 152,171 $ 858,592 $ 1,847,153
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income(loss) $ 171,964 $ (4,171) $ 28,325 $ 196,118
Adjustments to reconcile operating income(loss)to net cash
provided(used)by operating activities:
CHANGE IN ASSETS AND LIABILITIES
Receivables (1,159) (2,120) 109 (3,170)
Prepaids (7,953) - - (7,953)
Inventory - (18,786) - (18,786)
Accounts payable (8,550) 9,323 - 773
Unearned revenue (15,948) - - (15,948)
Accrued compensated absences (7,316) 1,534 - (5,782)
Net OPEB obligation 34,230 4,077 - 38,307
Net cash provided(used)by operating activities $ 165,268 $ (10,143) $ 28,434 $ 183,559
123
CITY OF TIGARD, OREGON
CENTRAL SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 5,782,248 $ 5,861,585 $ 5,647,565 $ (214,020)
Interest earnings 593 593 - (593)
Miscellaneous - - 64,408 64,408
Total revenues 5,782,841 5,862,178 5,711,973 (150,205)
EXPENDITURES:
Policy and administration 6,494,508 6,634,845 6,351,517 283,328
Change in fund balance before
other financing sources (uses) (711,667) (772,667) (639,544) 133,123
OTHER FINANCING SOURCES(USES)
Operating transfer in 861,205 861,205 845,738 (15,467)
Contingency (340,000) (279,000) - 279,000
Reserve for future expenditures (8,886) (8,886) - 8,886
Total other financing sources (uses) 512,319 573,319 845,738 272,419
Change in fund balance (199,348) (199,348) 206,194 405,542
Fund balance- Beginning of the year 199,348 199,348 218,979 19,631
Fund balance- End of the year $ - $ - 425,173 $ 425,173
Reconciliation of budgetary fund balance
to GAAP basis net position:
Net OPEB obligation (222,569)
Total net position, GAAP basis $ 202,604
124
CITY OF TIGARD, OREGON
FLEET/PROPERTY MANAGEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30, 2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,639,836 $ 1,639,836 $ 1,484,616 $ (155,220)
Miscellaneous - 14,868 3,784 (11,084)
Total revenues 1,639,836 1,654,704 1,488,400 (166,304)
EXPENDITURES
Public works 1,698,713 1,725,713 1,488,494 237,219
Change in fund balance before
other financing(uses) (58,877) (71,009) (94) 70,915
OTHER FINANCING (USES)
Contingency (25,000) (12,868) - 12,868
Reserve for future expenditures (2,635) (2,635) - 2,635
Total other financing (uses) (27,635) (15,503) - 15,503
Change in fund balance (86,512) (86,512) (94) 86,418
Fund balance- Beginning of the year 86,512 86,512 87,102 590
Fund balance- End of the year $ - $ - 87,008 $ 87,008
Reconciliation of budgetary fund balance
to GAAP basis net position:
Net OPEB obligation (15,009)
Total net position, GAAP basis $ 71,999
125
CITY OF TIGARD, OREGON
INSURANCE FUND
SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL
for the year ended June 30,2014
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 7,810 $ 7,810 $ - $ (7,810)
Recovered expenditures 14,000 14,000 47,689 33,689
Total revenues 21,810 21,810 47,689 25,879
EXPENDITURES
Policy and administration 50,000 50,000 18,843 31,157
Change in fund balance
before other financing(uses) (28,190) (28,190) 28,846 57,036
OTHER FINANCING (USES)
Operating transfer out (531) (531) (521) 10
Contingency (10,000) (10,000) - 10,000
Reserve for future expenditures (738,051) (738,051) - 738,051
Total other financing(uses) (748,582) (748,582) (521) 748,061
Change in fund balance (776,772) (776,772) 28,325 805,097
Fund balance- Beginning of the year 776,772 776,772 830,267 53,495
Fund balance- End of the year $ - $ - $ 858,592 $ 858,592
126
Other Supplementary
Schedules
CITY OF TIGARD,OREGON
SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES
For the fiscal year ended June 30,2014
Property Taxes Add Levy as Deduct Add Property Taxes
Receivable Extended by Discounts (Deduct) Add Deduct Receivable
June 30,2013 Assessor Allowed Adjustments Interest Collections June 30,2014
2013-2014 $ - $ 16,326,904 $ (430,150) $ (44,596) $ 4,345 $ (15,532,675) $ 323,828
2012-2013 331,827 - (1,583) (7,180) 11,063 (173,729) 160,397
2011-2012 169,468 - 16 3,662 9,676 (65,128) 117,694
2010-2011 115,389 - 2 3,868 11,621 (55,553) 75,327
2009-2010 69,273 - 2 (3,138) 5,006 (17,974) 53,169
2008-2009 6,903 - 1 (1,377) 1,003 (2,945) 3,584
2007 2008 and 11,751 - 0 (2,799) 1,077 (2,936) 6,393
prior
$ 704,611 $ 16,326,904 $ (431,712) $ (51,560) $ 43,791 $ (15,850,940) $ 740,392
Property Taxes
Cash Receivable
Distributed as follows: Collections June 30,2014
GENERAL FUND
Current $ 13,044,742 $ 270,050
Prior years'levies 180,546 355,284
Total General Fund 13,225,288 625,334
DEBT SERVICE FUND
Current 2,272,269 53,777
Prior years'levies 26,105 61,281
Total Debt Service Funds 2,298,374 115,058
Total $ 15,523,662 $ 740,392
NOTE: Taxes revenue on the Governmental Funds Statement of Revenues,Expenditures,and Changes in
Fund Balance is reported on the modified accrual basis.
128
CITY OF TIGARD, OREGON
SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS
For the fiscal year ended June 30, 2014
Bond Transactions Interest Transactions
Outstanding Matured/ Outstanding
Original Issue Matured Paid
June 30,2013 Additions Called Paid June 30,2014
Bancroft Bonds
Issued June 27, 2002 $ 1,307,969 $ 512,856 $ - $ 67,100 $ (67,100) $ 445,756 $ 36,547 $ (36,547)
Issued December 3, 2003 1,947,678 390,883 - 390,883 (390,883) - 7,622 (7,622)
$ 903,739 $ - $ 457,983 $ (457,983) $ 445,756 $ 44,169 $ (44,169)
General Obligation Bonds
Issued February 3,2011 $ 8,655,000 $ 7,520,000 $ - $ 645,000 $ (645,000) $ 6,875,000 $ 256,825 $ (256,825)
Issued June 21, 2010 7,250,000 5,305,000 - 695,000 (695,000) 4,610,000 230,768 (230,768)
Issued February 3,2011 17,000,000 15,980,000 - 645,000 (645,000) 15,335,000 646,875 (646,875)
$ 28,805,000 $ - $ 1,985,000 $ (1,985,000) $ 26,820,000 $ 1,134,468 $ (1,134,468)
Revenue Bonds
Issued May 1, 2012 $ 97,720,000 $ 97,720,000 $ - $ - $ - $ 97,720,000 $ 4,719,850 $ (4,719,850)
Long-term Note
Issued December 1, 2011 $ 2,398,000 $ 2,293,486 $ - $ 92,379 $ (92,379) $ 2,201,107 $ 68,805 $ (68,805)
129
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF BANCROFT IMPROVEMENT BONDS
For the fiscal year ended June 30, 2014
Issued June 27,2002
Fiscal Year 7.25%
of Maturity Interest
2014-2015 $72,100 $31,034
2015-2016 77,400 25,713
2016-2017 83,100 20,000
2017-2018 89,200 13,866
2018-2019 95,800 7,279
2020 28,156 1,021
Total $445,756 $98,913
130
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF GENERAL OBLIGATION BONDS
For the fiscal year ended June 30, 2014
Issued: February 3,2011 Issued:June 21,2010 Issued: February 3,2011
Fiscal Year Total Debt 3.00%to 4.00% 4.35% 3.00%to 4.75%
of Maturity Requirement Principal Interest Principal Interest Principal Interest
2014-2015 $ 2,045,000 $ 665,000 $ 237,175 $ 715,000 $ 200,535 $ 665,000 $ 627,526
2015-2016 2,105,000 685,000 216,925 735,000 169,432 685,000 607,576
2016-2017 2,165,000 705,000 196,075 755,000 137,460 705,000 587,025
2017-2018 2,235,000 730,000 174,550 780,000 104,618 725,000 565,875
2018-2019 2,305,000 755,000 148,500 800,000 70,688 750,000 544,125
2020-2024 8,380,000 3,335,000 273,500 825,000 35,888 4,220,000 2,246,025
2025-2029 5,170,000 - - - - 5,170,000 1,297,825
2030-2031 2,415,000 - - - - 2,415,000 173,375
$ 26,820,000 $ 6,875,000 $ 1,246,725 $ 4,610,000 $ 718,621 $ 15,335,000 $ 6,649,352
131
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF WATER REVENUE BONDS
For the fiscal year ended June 30, 2014
Issued: May 1,2012
Fiscal Year Total 3.00%to 5.00%
of Maturity Requirements Principal Interest
2014-2015 4,719,850 - 4,719,850
2015-2016 4,719,850 - 4,719,850
2016-2017 6,561,800 1,870,000 4,691,800
2017-2018 6,560,050 1,935,000 4,625,050
2018-2019 6,561,050 2,015,000 4,546,050
2020-2024 32,813,575 11,400,000 21,413,575
2025-2029 32,814,500 14,420,000 18,394,500
2030-2034 32,813,125 18,515,000 14,298,125
2035-2039 32,808,750 23,770,000 9,038,750
2040-2043 26,248,625 23,795,000 2,453,625
$ 186,621,175 $ 97,720,000 $ 88,901,175
132
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF SAFE DRINKING WATER REVOLVING LOAN FUNDS
For the fiscal year ended June 30, 2014
Issued: May 1,2012
Fiscal Year Total 3.00%to 5.00%
of Maturity Requirements Principal Interest
2014-2015 161,183 95,150 66,033
2015-2016 161,184 98,005 63,179
2016-2017 161,184 100,945 60,239
2017-2018 161,183 103,973 57,210
2018-2019 161,183 107,092 54,091
2020-2024 805,915 585,623 220,292
2025-2029 805,916 678,899 127,017
2030-2032 456,773 431,420 25,353
$ 2,874,521 $ 2,201,107 $ 673,414
133
Statistical Section
This part of the City of Tigard's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial
statements, note disclosures, required supplementary information and supplementary
information says about the city's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand
how financial performance has changed over time. 136-146
Revenue Capacity
These schedules contain information to help the reader assess the city's
most significant local revenue source, property taxes. 147-152
Debt Capacity
These schedules contain information to help the reader assess the
affordability of the city's current levels of outstanding debt and the
city's ability to issue additional debt in the future. 153-153
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within the city's financial activities take place. 160-162
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the city's financial report relates to the
services the city provides and the activities it performs. 163-165
Sources: Unless otherwise noted,the information in these schedules is derived
from the comprehensive annual financial reports for the relevant year.
The city implemented GASB Statement 34 in fiscal year 2003,
implemented GASB Statement 44 in fiscal year 2006 and implemented
GASB 54 in fiscal year 2011.
134
CITY OF TIGARD, OREGON
MISCELLANEOUS STATISTICAL DATA
June 30, 2014
Date of Incorporation 1961
Mayor/Council with a City
Manager as the administrative
Form of government
head of the government of the
City
Area (Square Miles - incorporated area) 12.2
Miles of streets 150.00
Police protection:
- Number of stations 1
- Number of sworn police officers 68
Education:
- Attendance centers 17
- Number of teachers\FTE 644
- Number of students 12,718
Building Permits issued (2013-2014) 783
Recreation and culture:
- Number of parks 20, totaling 255 acres
- Greenways 244 acres
- Number of libraries 1
- Number of volumes (estimated) 245,000
Employees:
- Classified service (union) 172
- Unclassified (non-union) 85
Information obtained from the various departments of the City of Tigard, Oregon
and Tigard/Tualatin School District #23-J - City student totals not available
135
CITY OF TIGARD,OREGON
NET POSITION BY COMPONENT
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2005 2006 2007 2008
GOVERNMENTAL ACTIVITIES
Net investment in capital assets $ 169,543,524 $ 168,577,473 $ 173,401,138 $ 177,656,465
Restricted 1,367,179 2,812,994 1,490,484 1,992,734
Unrestricted 21,178,146 21,685,865 25,234,231 23,053,474
Total governmental activities net position 192,088,849 193,076,332 200,125,853 202,702,673
BUSINESS-TYPE ACTIVITIES
Invested in capital assets, net of related debt 51,861,963 58,058,208 64,000,824 68,398,209
Restricted 3,761,976 3,761,976 3,783,324 3,783,324
Unrestricted 20,374,983 20,480,106 18,463,817 15,826,866
Total business-type activities net position 75,998,922 82,300,290 86,247,965 88,008,399
PRIMARY GOVERNMENT
Invested in capital assets, net of related debt 221,405,487 226,635,681 237,401,962 246,054,674
Restricted 5,129,155 6,574,970 5,273,808 5,776,058
Unrestricted 41,553,129 42,165,971 43,698,048 38,880,340
Total primary government net position $ 268,087,771 $ 275,376,622 $ 286,373,818 $ 290,711,072
Source: Comprehensive Annual Financial Report of the City.
136
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2009 2010 2011 2012 2013 2014
$ 179,584,222 $ 165,775,262 $ 181,343,650 $ 179,626,050 $ 181,196,030 $ 185,242,899
1,540,638 6,872,512 5,880,755 13,180,057 12,041,725 10,941,117
18,091,356 24,927,888 11,880,945 8,431,166 14,311,478 16,651,351
199,216,216 197,575,662 199,105,350 201,237,273 207,549,233 212,835,367
68,738,562 70,942,446 78,920,831 65,218,645 74,044,470 79,627,259
3,783,324 - 6,005,540 13,184,382 9,683,852 10,551,442
16,184,644 17,371,241 8,675,865 19,429,375 18,523,616 16,721,508
88,706,530 88,313,687 93,602,236 97,832,402 102,251,938 106,900,209
248,322,784 236,717,708 260,264,481 244,844,695 255,240,500 264,870,158
5,323,962 6,872,512 11,886,295 26,364,439 21,725,577 21,492,559
34,275,999 42,299,129 20,556,810 27,860,541 32,835,094 33,372,859
$ 287,922,745 $ 285,889,349 $ 292,707,586 $ 299,069,675 $ 309,801,171 $ 319,735,576
137
CITY OF TIGARD,OREGON
CHANGES IN NET POSITION
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2005 2006 2007
EXPENSES
Governmental activities
Community services $ 10,253,764 $ 11,241,521 $ 11,656,248
Public works 2,172,874 3,078,772 2,383,009
Community development 4,224,696 4,669,452 4,714,636
Policy and administration 6,166,577 7,447,828 4,398,213
Interest on long-term debt 716,899 935,359 153,319
Total governmental activities expenses 23,534,810 27,372,932 23,305,425
Business-type activities
Sewer 1,297,582 1,454,150 1,461,458
Stormwater 1,374,459 1,391,158 1,533,391
Water 8,200,928 7,291,602 7,452,480
Total business-type activities program expenses 10,872,969 10,136,910 10,447,329
Total primary government expenses $ 34,407,779 $ 37,509,842 $ 33,752,754
PROGRAM REVENUES
Governmental activities
Charges for services:
Community services $ 119,513 $ 146,798 $ 151,448
Public works 1,741,747 2,165,451 1,866,123
Community development 3,335,125 4,463,283 3,982,018
Policy and administration 908,053 1,015,976 1,146,301
Operating grants and contributions 285,888 133,509 1,537,714
Capital grants and contributions - - 2,596,223
Total governmental activities program revenues 6,390,326 7,925,017 11,279,827
Business-type activities
Charges for services:
Sewer 1,601,113 1,555,358 1,641,740
Stormwater 1,156,220 1,176,816 1,190,521
Water 7,762,153 6,953,809 6,336,186
Capital grants and contributions - 6,077,864 3,886,120
Total business-type activities program revenues 10,519,486 15,763,847 13,054,567
Total primary government program revenues $ 16,909,812 $ 23,688,864 $ 24,334,394
Source: Comprehensive Annual Financial Report of the City.
138
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2008 2009 2010 2011 2012 2013 2014
$ 13,678,913 $ 18,365,997 $ 19,832,642 $ 19,987,961 $ 20,025,191 $ 19,085,777 $ 20,023,165
2,373,710 2,468,981 8,563,893 10,911,875 12,489,448 8,585,063 8,399,436
5,186,834 7,238,839 4,846,494 4,159,289 4,709,751 3,988,011 4,267,328
3,992,478 5,997,644 1,511,956 1,825,398 2,117,198 1,339,254 1,732,016
354,664 526,825 548,987 1,214,420 1,125,259 1,226,774 1,147,024
25,586,599 34,598,286 35,303,972 38,098,943 40,466,847 34,224,879 35,568,969
1,963,223 1,597,413 1,379,105 1,386,597 1,743,929 2,114,054 2,617,625
1,585,105 1,920,640 2,061,622 1,667,699 1,649,715 2,045,399 1,958,551
6,792,833 7,624,478 7,880,598 6,996,463 7,807,706 11,989,337 11,730,347
10,341,161 11,142,531 11,321,325 10,050,759 11,201,350 16,148,790 16,306,523
$ 35,927,760 $ 45,740,817 $ 46,625,297 $ 48,149,702 $ 51,668,197 $ 50,373,669 $ 51,875,492
$ 168,232 $ 180,425 $ 232,384 $ 1,008,691 $ 1,191,417 $ 2,252,945 $ 1,872,350
1,377,855 952,652 1,751,341 2,096,677 1,915,631 2,120,366 2,519,515
2,331,834 1,249,995 1,490,701 1,747,617 1,684,287 2,579,329 1,765,005
1,524,653 1,463,736 108,940 84,065 105,755 65,233
739,171 153,447 199,506 6,516,004 6,952,717 6,924,053 6,318,382
3,103,521 199,112 305,398 230,500 1,049,774 2,173,900 1,804,398
9,245,266 4,199,367 4,088,270 11,599,489 12,877,891 16,156,348 14,344,883
2,322,462 1,348,750 1,117,987 1,021,840 1,025,732 1,203,187 1,727,206
1,593,097 1,484,627 1,872,545 2,178,298 2,402,189 2,629,694 2,733,346
7,002,872 7,417,827 7,834,978 9,065,554 11,895,044 14,907,664 15,985,607
136,331 834,660 1,022,045 4,583,764 2,871,726 1,675,987 1,111,346
11,054,762 11,085,864 11,847,555 16,849,456 18,194,691 20,416,532 21,557,505
$ 20,300,028 $ 15,285,231 $ 15,935,825 $ 28,448,945 $ 31,072,582 $ 36,572,880 $ 35,902,388
139
CITY OF TIGARD,OREGON
CHANGES IN NET POSITION(CONTINUED)
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2005 2006 2007
NET(EXPENSE)REVENUE
Governmental activities $ (17,144,484) $ (19,447,915) $ (12,025,598)
Business-type activities 716,899 5,626,937 2,607,238
Total primary government net expenses (16,427,585) (13,820,978) (9,418,360)
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities:
Property taxes 10,273,332 10,804,524 11,552,817
Franchise fees 2,670,050 3,042,187 3,835,007
Restricted intergovernmental revenues(excluding grants) 3,447,895 3,288,530 -
Unrestricted intergovernmental revenues 1,430,206 1,863,706 1,836,291
Interest earnings 859,057 922,508 1,548,735
Miscellaneous 283,539 513,943 302,269
Transfers between Governmental and Business-type - - -
Total governmental activities 18,964,079 20,435,398 19,075,119
Business-type activities:
Interest earnings 604,977 580,004 1,050,352
Miscellaneous 135,092 94,427 147,310
Transfers between Governmental and Business-type - - -
Total business-type activities 740,069 674,431 1,197,662
Total primary government 19,704,148 21,109,829 20,272,781
CHANGES IN NET POSITION
Governmental activities 1,819,595 987,483 7,049,521
Business-type activities 386,586 6,301,368 3,804,900
Total primary government $ 2,206,181 $ 7,288,851 $ 10,854,421
Source: Comprehensive Annual Financial Report of the City.
140
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2008 2009 2010 2011 2012 2013 2014
$ (16,341,333) $ (30,398,918) $ (31,215,702) $ (26,499,454) $ (27,588,956) $ (18,068,531) $ (21,224,086)
713,601 (56,667) 526,230 6,798,697 6,993,341 4,267,742 5,250,982
(15,627,731) (30,455,585) (30,689,471) (19,700,757) (20,595,615) (13,800,789) (15,973,104)
9,133,664 12,526,541 16,070,846 13,604,285 15,182,467 15,338,744 15,796,663
4,551,169 3,887,078 4,548,520 4,375,420 4,880,635 5,855,956 5,542,647
2,912,647 8,925,520 6,993,245 2,838,802 4,798,949 2,500,240 2,955,652
1,503,619 947,247 308,853 296,964 283,273 248,812 421,211
817,054 626,075 376,884 5,284,426 1,583,989 316,512 776,154
-
1,276,800 1,629,245 2,991,566 120,227 1,017,893
18,918,153 26,912,461 29,575,148 28,029,142 29,720,879 24,380,491 26,510,220
1,039,593 649,231 153,300 115,828 73,228 114,661 270,415
150,015 105,567 204,427 3,269 155,164 157,360 144,767
-
(1,276,800) (1,629,245) (2,991,566) (120,227) (1,017,893)
1,189,608 754,798 (919,073) (1,510,148) (2,763,174) 151,794 (602,711)
20,107,761 27,667,259 28,656,075 26,518,994 26,957,705 24,532,285 25,907,509
2,576,820 (3,486,457) (1,640,554) 1,529,688 2,131,923 6,311,960 5,286,134
1,903,209 698,131 (392,843) 5,288,549 4,230,167 4,419,536 4,648,271
$ 4,480,029 $ (2,788,325) $ (2,033,396) $ 6,818,237 $ 6,362,090 $ 10,731,496 $ 9,934,405
141
CITY OF TIGARD,OREGON
FUND BALANCES OF GOVERNMENTAL FUNDS
for the last ten fiscal years
(modified accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2005 2006 2007 2008 2009 2010 _ 2011 2012 2013 2014
GENERAL FUND
Reserved $ 54,632 $ 20,291 $ 209,378 $ - $ 419,488 $ 273,726 $ - $ - $ - $ -
Unreserved 8,131,112 8,368,793 9,716,643 10,794,057 7,338,828 7,067,526 - - - -
Nonspendable - - - - - - 305,164 471,975 472,941 508,374
Unassigned - - - - - - 7,247,383 7,378,411 9,687,736 11,474,700
Total General Fund $ 8,185,744 $ 8,389,084 $ 9,926,021 $ 10,794,057 $ 7,758,316 $ 7,341,252 $ 7,552,547 $ 7,850,386 $ 10,160,677 $ 11,983,074
ALL OTHER GOVERNMENTAL FUNDS
Reserved $ 4,821,174 $ 2,719,998 $ - $ - $ - $ - $ - $ - $ - $ -
Unreserved,reported in:
Special revenue funds 9,253,467 10,208,277 13,445,092 12,481,406 11,097,739 8,094,802 - - - -
Debt service funds - 1,811,861 2,027,633 682,960 167,169 1,927,247 - - - -
Capital projects funds - 1,589,018 1,087,826 1,309,774 1,373,469 4,945,265 - - - -
Nonspendable - - - - - - - - 14,986 16,055
Restricted - - - - - - 16,855,664 15,568,787 14,859,784 12,504,001
Committed - - - - - - 2,263,088 3,217,309 4,020,435 4,457,233
Assigned - - - - - - 417,479 428,823 670,223 905,166
Unassigned - - - - - - (382,937) (498,110) (601,324) (752,925)
Total all other governmental funds $ 14,074,641 $ 16,329,154 $ 16,560,551 $ 14,474,140 $ 12,638,377 $ 14,967,314 $ 19,153,294 $ 18,716,809 $ 18,964,104 $ 17,129,530
*This schedule was modified with the implementation of GASB 54,effective fiscal year 2011,which affected the
categories used to report fund balances.
Source: Comprehensive Annual Financial Report of the City.
142
CITY OF TIGARD,OREGON
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
for the last ten fiscal years
(modified accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2005 2006 2007 2008
REVENUES
Taxes $ 10,334,295 $ 10,817,886 $ 11,553,044 $ 12,137,977
City gas tax* - - - -
Franchise fees 2,670,050 3,042,187 3,835,007 4,551,169
Special assessments 373,141 1,421,765 163,379 120,678
Licenses and permits 4,442,222 4,852,719 3,011,348 1,871,841
Intergovernmental revenues 5,134,991 5,285,744 5,970,228 7,807,667
Charges for service 2,354,372 2,689,485 3,989,491 3,469,358
Fines and forfeitures 646,406 702,469 850,335 847,069
Interest earnings 836,359 903,637 1,507,065 1,475,808
Miscellaneous 280,411 502,951 283,712 747,532
Total revenues 27,072,247 30,218,843 31,163,609 33,029,099
EXPENDITURES
Current operating:
Community services 10,750,344 11,377,118 11,918,362 13,801,110
Public works 2,172,875 2,273,569 2,383,009 2,757,289
Community development 4,316,517 4,709,433 4,772,780 5,191,797
Policy and administration 4,334,147 4,564,400 4,717,967 397,510
Citywide support - - 23,000 -
Debt service:
Principal 1,285,275 1,526,286 166,571 922,907
Interest 748,417 697,305 630,916 454,403
Refunded bonds - - - -
Refunding bond issuance cost - - - -
Capital outlay 4,106,999 2,352,123 3,543,422 6,319,092
Total expenditures 27,714,574 27,500,234 28,156,027 29,844,108
Excess(deficiency)of revenues
over(under)expenditures (642,327) 2,718,609 3,007,582 3,184,991
OTHER FINANCING SOURCES(USES)
Proceeds from bond/long-term note - - - -
Operating transfers in 2,893,435 4,046,802 2,667,149 4,896,127
Operating transfers out (2,893,435) (4,046,802) (2,667,149) (9,299,491)
Total other financing sources(uses) - - - (4,403,364)
Net change in fund balances $ (642,327) $ 2,718,609 $ 3,007,582 $ (1,218,373)
Debt services as a percentage
of non-capital expenditures 9.43% 9.70% 3.35% 6.22%
* City gas tax was broken out of intergovernmental beginning in fiscal year 2013
Source: Comprehensive Annual Financial Report of the City.
143
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2009 2010 2011 2012 2013 2014
$ 12,405,880 $ 16,078,788 $ 16,753,457 $ 17,767,128 $ 18,208,253 $ 18,822,449
- - - - 830,031 638,852
3,887,078 4,548,520 4,375,420 4,880,635 5,724,192 5,542,647
87,208 284,202 40,164 38,776 43,170 258,831
1,282,438 1,229,880 2,590,516 2,444,551 3,175,118 3,098,875
7,560,542 6,358,393 9,834,646 6,586,757 6,040,986 6,386,961
2,536,590 3,083,087 3,127,307 3,059,653 6,632,779 5,937,889
804,128 915,524 907,216 1,092,296 1,038,948 929,293
930,382 300,126 287,284 262,080 254,237 424,221
513,392 249,180 47,489 633,575 206,443 312,815
30,007,640 33,047,700 37,963,499 36,765,451 42,154,157 42,352,833
18,214,907 19,418,498 19,182,018 19,638,469 18,636,382 19,420,335
3,463,390 5,129,767 6,059,692 6,354,390 6,551,980 6,914,185
7,184,355 4,674,008 3,975,257 3,902,223 3,937,089 4,219,481
907,661 787,209 711,743 819,034 711,385 701,172
796,995 - - - - -
794,853 875,513 2,590,456 1,894,125 1,992,500 2,445,993
530,403 557,061 67,294 1,652,691 1,264,795 1,178,637
- -
8,836,046 - - -
81,236 - - -
3,940,781 7,373,043 19,247,942 4,037,766 6,357,256 7,657,993
35,833,344 38,815,099 60,751,684 38,298,698 39,451,387 42,537,796
(5,825,705) (5,767,399) (22,788,185) (1,533,247) 2,702,770 (184,963)
7,250,000 26,214,495 - - -
3,342,328 4,965,010 16,977,142 6,969,663 4,735,619 6,420,053
(2,357,267) (3,688,210) (16,006,177) (5,575,062) (4,880,803) (6,247,267)
985,061 8,526,800 27,185,460 1,394,601 (145,184) 172,786
$ (4,840,644) $ 2,759,401 $ 4,397,275 $ (138,646) $ 2,557,586 $ (12,177)
4.34% 4.71% 8.88% 11.55% 10.84% 10.44%
144
CITY OF TIGARD,OREGON
GOVERNMENTAL REVENUES
For the last ten fiscal years
Program Revenues General Revenues
Fiscal Charges Operating Capital Gain(Loss)on
Year Ended for Grants and Grants and Intergovernmental Interest Donated Dispostion of
June 30 Services Contributions Contributions Taxes Franchise Fees Revenues Earnings Assets Capital Assets Miscellaneous Total
2005 $ 16,623,924 $ 285,888 $ - $ 10,273,332 $ 2,670,050 $ 4,878,101 $ 1,464,034 $ - $ - $ 418,631 $ 36,613,960
2006 17,477,491 133,509 6,077,864 10,804,524 3,042,187 5,152,236 1,502,512 - - 608,370 44,798,693
2007 7,145,890 1,537,714 2,596,223 11,552,817 3,835,007 1,836,291 2,599,087 - - 449,579 31,552,608
2008 5,402,574 739,171 3,103,521 12,237,185 4,551,169 2,912,647 1,503,619 - - (2,286,467) 28,163,419
2009 3,846,808 153,447 199,112 12,526,541 3,887,078 8,925,520 947,247 - - 626,075 31,111,828
2010 3,583,366 199,506 305,398 16,070,846 4,548,520 6,993,245 308,853 - - 376,884 32,386,618
2011 4,852,985 6,516,004 230,500 13,604,285 4,375,420 2,838,802 296,964 - - 5,284,426 37,999,386
2012 4,875,400 6,952,717 1,049,774 15,182,467 4,880,635 4,798,949 283,273 - - 1,583,989 39,607,204
2013 7,058,395 6,924,053 2,173,900 15,338,744 5,855,956 2,500,240 248,812 - - 316,508 40,416,608
2014 6,222,103 6,318,382 1,804,398 15,796,663 5,542,647 2,955,652 421,211 - - 776,154 39,837,210
Source: Comprehensive Annual Financial Report of the City.
145
CITY OF TIGARD,OREGON
GOVERNMENTAL EXPENSES BY FUNCTION
For the last ten fiscal years
Fiscal Interest on
Year Ended Community Community Policy and Long-Term
June 30 Services Public Works Development Administration Debt Sewer Stormwater Water Total
2005 $ 10,253,764 $ 2,172,874 $ 4,224,696 $ 6,166,577 $ 716,899 $ 1,297,582 $ 1,374,459 $ 8,200,928 $ 34,407,779
2006 11,241,521 3,078,772 4,669,452 7,447,828 935,359 1,454,150 1,391,158 7,291,602 37,509,842
2007 11,656,248 2,383,009 4,714,636 4,398,213 153,319 1,461,458 1,533,391 7,452,480 33,752,754
2008 13,678,913 2,373,710 2,373,710 3,992,478 526,825 1,963,223 1,585,105 6,792,833 33,286,797
2009 18,365,997 2,468,981 7,238,839 5,997,644 526,825 1,597,413 1,920,640 7,624,478 45,740,817
2010 19,832,642 8,563,893 4,846,494 1,511,956 548,987 1,379,105 2,061,622 7,880,598 46,625,297
2011 19,987,961 10,911,875 4,159,289 1,825,398 1,214,420 1,386,597 1,667,699 6,996,463 48,149,702
2012 20,025,189 12,489,448 4,709,750 2,117,198 1,125,259 1,743,929 1,649,718 7,807,706 51,668,197
2013 19,085,777 8,585,063 3,988,011 1,339,254 1,226,774 2,114,054 2,045,399 11,989,337 50,373,669
2014 20,023,165 8,399,436 4,267,328 1,732,016 1,147,024 2,617,625 1,958,551 11,730,347 51,875,492
Source: Comprehensive Annual Financial Report of the City.
146
CITY OF TIGARD,OREGON
GENERAL GOVERNMENTAL REVENUES BY SOURCES-
BUDGETARY BASIS
For the last ten fiscal years
Fiscal Licenses Inter- Charges
Year Ended Franchise and governmental For Fines and Miscellaneous
June 30 Taxes Fees Permits Revenues Services Forfeitures Revenues* Total
2005 $ 10,334,295 $ 2,670,050 $ 4,442,222 $ 5,134,991 $ 1,743,493 $ 646,406 $ 1,489,909 $ 26,461,366
2006 10,817,886 3,042,187 4,852,719 5,285,744 2,689,485 702,469 2,828,353 30,218,843
2007 11,553,044 3,835,007 3,011,348 5,970,228 3,989,491 850,335 1,954,156 31,163,609
2008 12,137,977 4,551,169 1,871,841 847,069 1,475,808 847,069 2,344,018 24,074,951
2009 12,405,880 3,887,078 1,282,438 7,560,542 2,536,590 804,128 1,530,983 30,007,640
2010 16,078,788 4,548,520 1,229,880 6,358,393 3,083,087 915,524 833,508 33,047,700
2011 16,753,457 4,375,420 2,590,516 9,834,646 3,127,307 907,216 374,937 37,963,499
2012 17,767,128 4,880,635 2,444,551 6,586,757 3,059,653 1,092,296 934,431 36,765,451
2013 18,208,253 5,724,192 3,175,118 6,871,017 6,632,779 1,038,948 503,850 42,154,157
2014 19,720,132 5,542,647 3,098,875 6,386,961 5,937,889 929,293 737,036 42,352,833
* Includes special assessments collections,interest earnings,and private donations.
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
147
CITY OF TIGARD,OREGON
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION-
BUDGETARY BASIS
For the last ten fiscal years
City-Wide
Support
Fiscal Public Works Functions,
Year Ended Community and Community Policy and Capital Projects Debt
1 June 30 Services Development 1 Administration I and Other Service Total
2005 $ 10,750,344 $ 6,489,391 $ 1,017,764 $ 4,106,999 $ 2,033,691 $ 24,398,189
2006 11,377,118 3,983,002 4,564,400 2,352,123 2,223,591 24,500,234
2007 11,918,362 7,155,789 4,717,967 3,566,422 2,297,487 29,656,027
2008 13,801,110 7,949,086 397,510 6,319,092 1,377,310 29,844,108
2009 18,214,907 10,647,745 1,704,656 3,940,781 1,325,256 35,833,344
2010 19,418,498 9,803,775 787,209 7,373,043 1,432,574 38,815,099
2011 19,182,018 10,034,949 711,743 19,247,942 11,575,032 60,751,684
2012 19,638,468 10,256,613 819,034 4,037,766 3,546,816 38,298,697
2013 18,636,382 10,489,069 711,385 6,357,256 3,257,295 39,451,387
2014 19,420,335 11,133,666 701,172 7,657,993 3,624,630 42,537,796
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
148
CITY OF TIGARD,OREGON
MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY
For the last ten fiscal years
Assessed Value
Estimated Real Assessed to
FY Ended Personal Public Utility Total Assessed Total Direct Market Value Value as a%
June 30 Real Property Property Property Value Tax Rate* (RMV) of RMV
2005 $ 3,543,033,334 $ 204,589,409 $ 160,586,232 $ 3,908,208,975 $ 2.70 $ 5,402,433,125 72.34%
2006 3,717,827,074 210,841,242 159,236,470 4,087,904,786 2.72 5,913,857,305 69.12%
2007 3,932,173,130 229,401,995 183,090,030 4,344,665,155 2.73 7,152,421,012 60.74%
2008 4,104,676,710 234,099,260 233,581,850 4,572,357,820 2.75 7,449,594,674 61.38%
2009 4,306,936,640 247,691,980 187,315,080 4,741,943,700 2.70 8,161,684,333 58.10%
2010 4,476,784,320 249,636,920 187,721,070 4,914,142,310 2.78 7,738,192,442 63.51%
2011 4,605,287,760 236,758,507 186,625,460 5,028,671,727 2.79 7,260,251,256 69.26%
2012 4,740,820,190 233,150,042 185,094,100 5,159,064,332 3.86 6,916,823,794 74.59%
2013 4,879,417,110 234,122,196 168,258,100 5,281,797,406 4.28 6,727,550,189 78.51%
2014 5,066,140,190 235,966,170 165,074,260 5,467,180,620 3.44 7,032,753,815 77.74%
Assessed Value by Type for the fiscal year ended 2014
Public Utility Property
Personal Property 3%
4%
01, 1
Real Property
93%
*per$1,000 of assessed value/including phase in rates
Source: Washington County Assessment and Taxation
149
CITY OF TIGARD,OREGON
PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS
(Dollars per$1,000 of Assessed Value rounded to the nearest cent)
For the last ten fiscal years
City of Tigard Overlapping Rates
Tigard/ Washington
Direct Rates Tualatin Beaverton Tualatin County Hillsboro Total Direct
Metzger School School Valley Rural Fire Portland School Other &
FY Ended Perm Debt Urban Water District Washington District District Fire&Rescue District Community District Taxing Overlapping
June 30 Rate Svc Renewal Phase In Total Combined County No.23-1 No.48-1 District No.2 College No.1-J Agencies Rates
2005 $ 2.51 $ 0.19 $ - $ - $2.70 $ 0.13 $ 2.87 $ 7.79 $ 6.60 $ 1.83 $ 1.12 $ 0.51 $ - $ 0.62 $ 24.17
2006 2.51 0.21 - - 2.72 - 2.84 7.85 7.98 1.82 1.12 0.50 - 0.63 25.46
2007 2.51 0.22 - - 2.73 - 2.45 7.67 6.29 1.82 1.12 0.49 - 0.60 23.17
2008 2.51 0.23 0.01 - 2.75 - 2.44 7.59 6.74 1.56 1.12 0.28 - 0.61 23.09
2009 2.51 0.18 0.01 - 2.70 - 2.39 7.52 6.56 1.54 1.12 0.50 - 0.70 23.03
2010 2.51 0.21 0.06 - 2.78 - 2.98 7.65 6.88 1.89 1.69 0.63 - 0.75 25.25
2011 2.51 0.21 0.07 - 2.79 - 2.98 7.37 6.78 1.88 1.69 0.64 - 0.81 24.94
2012 2.51 0.45 0.06 0.83 3.85 - 2.97 7.44 6.86 1.92 1.69 0.60 7.47 1.88 34.68
2013 2.51 0.44 0.06 1.27 4.28 - 2.96 7.38 6.77 1.91 1.69 0.66 7.50 0.72 33.87
2014 2.51 0.44 0.06 0.43 3.44 - 2.96 7.41 8.05 1.91 1.69 0.73 7.41 0.78 34.38
Taxes levied may be composed of three types of levies:(1)a base operating levy,(2)a special operating levy approved by the voters in the district and(3)a debt service levy. Each
district with outstanding General Obligation bonded debt is required to levy taxes sufficient with other available funds,to meet principal and interest payments when due.
Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the County. The County collects all taxes against property in the
County(except assessments for improvements charged to benefited property)and distributes taxes collected at least monthly. No charges are made to the taxing districts for these
services.
NOTE:-Not all taxing districts are charged on each parcel of property,actual rates on tax bills are a combination of the above depending upon the location of the parcel and the
school district and sewer and water district boundaries. Total overlapping tax rates for property in Tigard in 2014 ranged from$13.31/$1,000 to$16.60/$1,000.
Source: Washington County Department of Assessment and Taxation.
150
CITY OF TIGARD,OREGON
PRINCIPAL PROPERTY TAXPAYERS
For current and nine years ago
2014 2005
Percentage Percentage
Taxable of Total City Taxable of Total City
Taxpayer Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value
Pacific Realty Associates $ 194,124,209 1 3.68% $ 149,069,426 1 3.81%
PPR Washington Square LLC 134,845,690 2 2.55% 81,987,770 2 2.10%
Lincoln Center LLC 84,397,524 3 1.60% 70,459,982 3 1.80%
Frontier Communications 39,391,000 4 0.75% 50,038,200 4 1.28%
Comcast Corporation 30,831,200 5 0.58% - - 0.00%
Portland General Electric 29,782,000 6 0.56% 27,993,097 6 0.72%
Macy's Department Stores Inc 24,644,860 7 0.47% 18,888,280 10 0.48%
Constance Robinson (Trust) 24,146,130 8 0.46% 20,747,710 9 0.53%
Arbor Heights/Holland Holdings 22,845,570 9 0.43% - - 0.00%
Sprint/Nextel Corp. 25,858,900 10 0.49% - - 0.00%
Northwest Natural Gas - 22,926,300 7 0.59%
Calwest Industrial Holdings, LLC - 31,848,060 5 0.81%
Nesbitt Portland Property LLC - 21,297,560 8 0.54%
Total $ 610,867,083 11.57% $ 495,256,385 12.66%
Source: Washington County Assessment&Taxation records.
151
CITY OF TIGARD,OREGON
PROPERTY TAX LEVIES AND COLLECTIONS
For the last ten fiscal years
Percent Percent
Percent Delinquent Total Tax Outstanding Delinquent
FY Ended Total Tax Current Tax of Levy Tax Total Tax Collections Delinquent Taxes To
June 30 Levy Collections Collections Collections Collections To Tax Levy Taxes Tax Levy
2005 $ 10,568,724 $ 10,032,595 94.93% $ 293,729 $ 10,326,324 97.71% $ 330,296 3.13%
2006 11,115,136 10,571,115 95.11% 252,844 10,823,959 97.38% 310,629 2.79%
2007 11,871,043 11,514,034 96.99% 210,217 11,724,251 98.76% 346,648 2.92%
2008 12,515,279 11,895,526 95.05% 121,148 12,016,674 96.02% 425,546 3.40%
2009 12,732,804 12,005,730 94.29% 142,047 12,147,777 95.41% 531,172 4.17%
2010 13,371,853 12,625,421 94.42% 329,304 12,954,725 96.88% 572,298 4.28%
2011 13,656,156 12,928,269 94.67% 379,537 13,307,806 97.45% 555,725 4.07%
2012 15,262,018 14,519,683 95.14% 236,074 14,755,757 96.68% 722,358 4.73%
2013 15,577,974 14,874,217 95.48% 227,439 15,101,656 96.94% 690,493 4.43%
2014 15,986,743 15,209,062 95.14% 311,858 15,520,920 97.09% 740,392 4.63%
Taxes are levied as of July 1 each year and are payable in three installments,without interest,on November 15,February 15 and May 15
Interest is charged at the rate of 1%per month on delinquent taxes. Tax liens are foreclosed after three year's delinquencies.
Taxpayers receive a discount of 3%for payment in full by November 15 and 2%for payment of two thirds of the total taxes due.
City Property Taxes Levied
18,000,000
16,000,000 1 Ir
14,000,000
12,000,000
10,000,000
• • • ■ • • • •
6,000,000 • • • • • • • • •
4,000,000 • • • • • • • • •
2,000,000 • ■ • ■ • • • • •
2,000,000
• ■ • Mu ■ ■ M
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
152
CITY OF TIGARD,OREGON
SPECIAL ASSESSMENT COLLECTIONS
For the last ten fiscal years
Current Ratio of Total
FY Ended Assessments Assessments Collections Assessments Outstanding
June 30 Due (1) Collected(2) to Amount Due Added Assessments
2005 $ 598,804 $ 373,141 62.31% $ - $ 3,074,031
2006 821,321 1,421,765 173.11% - 1,639,875
2007 937,916 163,379 17.42% - 1,461,838
2008 116,194 120,678 103.86% - 1,266,871
2009 23,100 87,208 377.52% - 1,178,745
2010 74,400 284,202 381.99% - 968,943
2011 179,200 40,164 22.41% - 854,377
2012 38,776 28,365 73.15% - 826,012
2013 62,500 118,888 190.22% 196,615 903,739
2014 457,983 457,983 100.00% 96,450 542,206
(1) This amount is equal to the matured principal on Bancroft improvement bonds.
(2)Represents collections of current assessments for payment of Bancroft improvement bonds as well
as assessment collections on projects for which such bonds have not been issued.
Source: City assessment records
153
CITY OF TIGARD, OREGON
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONG-TERM
DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
For the last ten fiscal years
Percent of
Total General Debt Service to
FY Ended Total Debt Governmental Total General
June 30 Principal Interest Service Expenditures Expenditures
2005 $ 1,285,275 $ 748,817 $ 2,034,092 $ 27,714,574 7.34%
2006 1,526,286 697,305 2,223,591 27,500,234 8.09%
2007 1,666,571 630,916 2,297,487 29,656,027 7.75%
2008 922,907 454,403 1,377,310 29,844,108 4.62%
2009 794,853 530,403 1,325,256 35,833,344 3.70%
2010 875,513 557,061 1,432,574 38,815,099 3.69%
2011 2,590,456 67,294 2,657,750 60,751,684 4.37%
2012 1,894,126 1,652,691 3,546,817 38,298,698 9.26%
2013 1,992,500 1,264,795 3,257,295 39,451,387 8.26%
2014 2,445,993 1,178,637 3,624,630 42,537,796 8.52%
154
CITY OF TIGARD,OREGON
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND
NET BONDED DEBT PER CAPITA
For the last ten fiscal years
Gross General Less Debt Ratio of Net
Obligation Service Net Bonded Debt Net Bonded
FY Ended Assessed Bonded Debt Monies Bonded to Assessed Debt Per
June 30 Population Value Outstanding Available Debt Value Capita
2005 45,500 $ 3,908,208,975 $ 15,164,807 $ 1,312,547 $ 13,852,260 0.35% $ 304.45
2006 46,300 4,087,904,786 11,572,205 1,849,770 9,722,435 0.24% 209.99
2007 46,400 4,344,665,155 11,066,369 1,849,770 9,216,599 0.21% 198.63
2008 46,715 4,572,357,820 10,547,958 296,805 10,251,153 0.22% 219.44
2009 47,460 4,741,943,700 10,011,895 258,769 9,753,126 0.21% 205.50
2010 47,595 4,914,142,310 16,708,100 101,190 16,606,910 0.34% 348.92
2011 48,035 5,028,671,727 25,655,000 175,458 25,479,542 0.51% 530.44
2012 48,415 5,159,064,332 30,735,000 263,629 30,471,371 0.59% 629.38
2013 48,695 5,281,797,406 29,397,612 592,612 28,805,000 0.55% 591.54
2014 50,444 5,467,180,620 27,504,927 532,328 26,972,599 0.49% 534.70
Source: City budget documents, Comprehensive Annual Financial Reports of the city and Washington
Department of Assessment and Taxation.
155
CITY OF TIGARD, OREGON
COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT
June 30, 2014
Percent Amount
Applicable Applicable
Net Debt Inside City of Inside City of
Jurisdiction Outstanding Tigard * Tigard
Tigard/Tualatin School District#23-i $ 110,945,868 46.6400% $ 51,744,598
Metro 222,955,000 3.5800% 7,978,891
Beaverton School District #48 416,415,000 3.8800% 16,149,823
Portland Community College 167,875,000 4.4900% 7,532,719
Washington County 20,235,000 10.7200% 2,169,961
Tualatin Valley Fire & Rescue District 42,600,000 12.2200% 5,205,677
Sub-Total of Overlapping Debt 981,025,868 90,781,669
City of Tigard 27,504,927 100.0000% 27,504,927
Total for Overlapping Debt $ 1,008,530,795 $ 118,286,596
* The City of Tigard does not calculate this percentage; it is provided by the State of Oregon.
Source: Oregon State Treasury Debt Management Division
156
CITY OF TIGARD,OREGON
COMPUTATION OF LEGAL DEBT MARGIN
For the last ten fiscal years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Debt limit $ 162,072,994 $ 122,637,144 $ 130,339,955 $ 137,170,735 $ 142,258,311 $ 147,424,269 $ 150,860,152 $ 154,771,930 $ 158,453,922 $ 164,015,419
Total net debt applicable to limit 12,060,540 9,289,259 9,724,836 10,547,958 10,011,895 16,708,100 32,300,000 30,735,000 28,800,576 26,820,000
Legal debt margin $ 150,012,454 $ 113,347,885 $ 120,615,119 $ 126,622,777 $ 132,246,416 $ 130,716,169 $ 118,560,152 $124,036,930 $ 129,653,346 $ 137,195,419
Total net debt applicable to the limit
as a percentage of debt limit 7.44% 7.57% 7.46% 7.69% 7.04% 11.33% 21.41% 19.86% 18.18% 16.35%
Legal Debt Margin Calculation at June 30,2014:
True cash value(2013-2014) $5,467,180,620
Limit as a percent 3%
Debt Limit(as a percent of real market value) 164,015,419
Debt applicable to limit:
Gross bonded debt $ 27,504,927
Excludable debt-Bancroft improvement bonds and bond premium (684,927)
Debt subject to limitation 26,820,000
Legal debt margin-amount available for future indebtedness 137,195,419
Total net debt applicable to the limit as a percent of debt limit 16.35%
Note: Pursuant to Oregon Revised Statutes 223.295 outstanding general obligation debt is limited to
3 percent of real market value
Source: Washington County Department of Assessment and Taxation
157
CITY OF TIGARD,OREGON
RATIO OF DEBT BY TYPE
For the last ten fiscal years
Governmental Activities M Business-type Activities
General Long-uerm (1)Percentage (2)
FY Ended Obligation Bancroft Capital Note Payable Notes Payable Revenue Total Primary of Personal Per
June 30 Population Bonded Debt Bonded Debt Lease Debt Debt Bonds* Government Income** Capita
2005 45,500 $ 15,164,807 $ 3,104,267 $ - $ 1,681,637 $ - $ - $ 19,950,711 1.44% $ 447
2006 46,300 11,572,205 2,282,946 - 1,465,007 - - 15,320,158 1.08% 330
2007 46,400 11,066,369 1,345,030 - 1,242,187 - - 13,653,586 0.96% 294
2008 46,715 10,547,958 1,301,230 - 1,012,986 - - 12,862,174 0.90% 275
2009 47,460 10,011,895 1,278,130 - 777,296 2,853,868 - 14,921,189 1.03% 314
2010 47,595 16,708,100 1,203,730 - 529,978 2,853,868 - 21,295,676 1.47% 447
2011 48,035 32,597,213 1,024,530 - 270,925 5,953,868 - 39,846,536 2.72% 830
2012 48,415 30,735,000 966,239 - - 2,398,000 105,367,290 139,466,529 9.44% 2,881
2013 48,695 28,805,000 903,739 58,074 - 2,293,486 104,896,687 136,956,986 9.21% 2,813
2014 50,444 27,059,171 445,756 58,074 - 2,201,107 104,896,686 134,660,794 8.75% 2,670
*Revenue bonds issued for improvements to the Tigard Water Service Area(TWSA)are liabilities of the City of Tigard,but were not issued as
full faith and credit obligations. Debt service on these bonds will be paid by customers of TWSA,which includes residents in the cities of
Tigard,Durham and King City,and an unincorporated area of Washington County.
**Personal income is not available for the City of Tigard,so per capita income for Washington County is used
Sources: City budget documents,Comprehensive Annual Financial Reports of the city and Washington County Deaprtment of Assessment and
Taxation.
158
CITY OF TIGARD, OREGON
COMPUTATION OF WATER REVENUE BONDS
DEBT COVERAGE
For the last three fiscal years (1)
2012 2013 2014
Gross revenues $ 11,895,043 $ 14,907,664 $ 16,079,753
SDC-related:
SDC Fund interest earnings 3,590 4,746 -
Reimbursement fee receipts (2) 787,666 881,294 442,651
Improvement fee receipts (3) 376,412 660,425 389,460
Total SDC-related 1,167,668 1,546,465 832,111
Operating expense:
Salaries and wages 1,134,988 1,131,531 1,225,170
Contracted services 163,385 249,857 400,972
Water purchases 2,904,433 3,177,982 3,199,292
General, admin and other 1,168,191 2,316,605 2,548,678
Total operating expenses 5,370,997 6,875,975 7,374,112
Net revenues (including SDCs) 7,691,714 9,578,154 9,537,752
Net revenues (excluding SDCs) 6,524,046 8,031,689 8,705,641
Debt service -first lien bonds:
2012 bonds - 3,539,888 4,719,850
2015 bonds (4) - - -
Debt service coverage -first lien bonds
(excluding system development charges) NA 2.27 1.84
(1) Revenue bonds were issued in May 2012. One of the debt covenants requires debt service coverage
(Net revenues divided by debt service)to be a minimum of 1.1x.
(2) Reimbursement fees may not be available to pay debt service on the 2012 Bonds until City Council
takes action to authorize that use of those fees for the projects
(3) Improvement fees have been approved for the projects related to the Lake Oswego-Tigard Water
Partnership. Tigard anticipated approximately 85% of the 2012 bond proceeds to be used to finance
projects related to the Partnership and approximately 15% of the 2012 bond proceeds to be used
to finance projects that are not directly related to the partnership.
(4) Debt service is projected to be issued in February 2015
159
CITY OF TIGARD,OREGON
DEMOGRAPHICS STATISTICS
For the last ten fiscal years
(3)
Assessed Total (4)
Value Personal Unemployment
of Taxable (2) (3) Income Rate
FY Ended (1) Property School Per Capita (thousands Portland
June 30 Population Per Capita Enrollment Income of dollars) Metro Area
2005 45,500 $ 87,530 11,653 $ N/A $ N/A 6.30%
2006 46,300 88,081 12,134 N/A N/A 6.30%
2007 46,400 93,635 12,100 N/A N/A 4.80%
2008 46,715 97,878 12,451 N/A N/A 5.30%
2009 47,460 99,915 12,685 N/A N/A 9.70%
2010 47,595 103,249 12,913 N/A N/A 8.40%
2011 48,035 104,688 12,688 N/A N/A 9.50%
2012 48,415 106,559 12,691 30,522 1,477,723 8.20%
2013 48,695 108,467 12,688 32,527 1,583,902 7.50%
2014 50,444 108,381 12,718 33,709 1,700,417 6.40%
Sources of Information:
(1)State of Oregon, Department of Administrative Services
(2)Tigard/Tualatin School District#23-I-City student totals not available
(3) Washington State University-Northwest Income Indicators Project
Population and School Enrollment Trends
55,000
50,000
45,000
40,000
35,000
30,000
25,000 -
20,000
15,000
10,000 • • • •
5,000
0
I
I I I
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Population School Enrollment
160
CITY OF TIGARD, OREGON
PRINCIPAL EMPLOYERS
For current year and nine years ago
2014 2005
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Capital One 861 1 3.05% - - -
Tigard -Tualatin School District 779 2 2.76% - - -
Nordstrom 422 3 1.49% 502 2 2.18%
Macy's Department Stores Inc 404 4 1.43% - - -
Oregon Public Employees Retirement 396 5 1.40% 461 3 2.01%
Costco Wholesale Corporation 273 6 0.97% - - -
City of Tigard 257 7 0.91% - - -
Cheesecake Factory 250 8 0.89% - - -
Home Depot 241 9 0.85% - - -
Gerber Legendary Blades 232 10 0.82% - - -
Renaissance Credit Services - - 1,116 1 4.86%
Servicemaster Building Maintenance - - 250 4 1.09%
Rockwell Collins Flight Dynamics - - 249 5 1.08%
Total 4,115 14.58% 2,578 11.22%
Source: City of Tigard Adopted Budget and Tigard Chamber of Commerce.
161
CITY OF TIGARD, OREGON
PROPERTY VALUE AND CONSTRUCTION
For the last ten fiscal years
Commercial Construction (1) Residential Construction (1)
FY Ended Number of Number of
June 30 Permits Value Permits Value
2005 11 $ 49,645,891 325 $ 96,002,190
2006 8 50,744,300 299 100,965,847
2007 9 50,512,736 231 67,798,361
2008 6 73,614,404 93 31,810,734
2009 4 1,944,775 42 9,324,154
2010 4 2,003,118 123 27,972,462
2011 5 837,655 113 28,150,102
2012 5 2,589,566 104 27,794,839
2013 8 20,053,155 174 41,954,242
2014 9 24,964,563 72 21,410,225
(1) From City of Tigard Building Department. Multi family permits are included in the
number of permits issued for residential construction.
162
CITY OF TIGARD,OREGON
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
For the last ten fiscal years
Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GOVERNMENTAL ACTIVITIES
Community services
Police 77.00 78.00 80.00 93.00 93.00 90.10 90.10 91.10 84.50 84.50
Library 33.20 33.20 34.20 41.90 41.90 38.80 38.80 38.80 34.80 34.80
Public works
Administration 7.85 7.60 7.60 8.85 8.85 9.35 9.75 8.75 9.00 9.20
Parks maintenance 10.75 10.75 10.75 9.75 9.75 9.75 9.75 9.75 9.75 9.75
Street maintenance 8.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.25
Healthy Streams - - - - - - - - 1.00 -
Fleet maintenance 3.00 2.50 2.50 2.50 2.50 2.00 2.60 2.60 1.50 0.95
Property management 3.25 3.25 3.25 4.25 4.25 4.25 4.25 4.25 3.75 3.85
Engineering(a) 15.50 15.50 10.50 10.50 10.50 11.80 11.80 11.80 12.00 13.00
Community development
Administration 3.00 3.00 2.00 3.00 3.00 2.00 2.00 3.00 2.00 2.00
Building inspection 18.30 18.80 19.80 17.80 6.20 6.24 7.20 8.10 7.80 8.80
Development Services 8.20 8.20 8.20 10.20 10.20 7.56 7.80 5.90 4.80 3.80
Community Planning 5.00 7.00 8.00 7.00 7.00 7.00 7.00 9.00 9.00 9.00
Development Engineering(b) - - 5.00 5.00 4.00 1.60 - - - -
Economic Development(c) - - - 1.00 1.00 1.00 1.00 1.50 1.00 2.00
Policy and Administration
City management 3.80 3.80 3.80 5.30 5.30 4.50 4.50 4.20 4.00 4.00
Human resources 4.00 4.00 4.00 5.00 5.00 5.00 5.00 5.00 4.80 4.80
Information technology 6.00 7.00 8.00 7.00 7.00 7.00 7.00 7.00 6.30 5.80
Risk management 2.00 2.00 2.00 2.50 2.50 2.30 2.30 2.30 2.10 2.10
Finance administration 3.00 3.00 3.00 3.00 3.00 5.30 3.00 3.00 3.00 3.00
Financial operations 10.80 10.80 10.80 5.50 5.50 4.50 4.50 4.50 4.60 4.60
Utility Billing(d) 6.50 6.50 5.50 5.50 6.30 6.50 6.80
Design&Communication 7.30 7.30 7.30 4.50 4.50 3.05 3.05 3.25 3.05 3.05
Contracts&Purchasing(e) 2.30 2.30 1.80 2.00
City Recorder/Records(f) 3.00 3.00 3.25 3.25 3.35 4.15 4.15
Municipal court 3.00 3.00 3.00 3.25 3.25 3.50 3.75 3.75 3.65 3.65
BUSINESS-TYPE ACTIVITIES
Public works
Sanitary sewer 7.75 7.25 7.35 5.35 5.35 5.25 5.25 6.25 6.25 6.50
Stormwater 8.25 7.25 6.35 7.10 7.10 7.00 7.00 6.25 5.25 5.50
Water 16.25 16.50 17.30 16.30 16.30 13.00 12.00 12.75 12.50 12.00
Total 265.20 266.70 271.70 296.05 283.45 267.60 267.45 271.75 255.85 256.85
Source: City of Tigard Finance Department
(a) Engineering was budgeted with Development Services until FY2009-10.
(b) Development Engineering was budgeted with Capital Construction&Transportation as Engineering until FY2006-07.
(c) Downtown Redevelopment was budgeted with Long range planning until FY 2008-09.
(d) Utility Billing was budgeted with Financial operations until FY 2007-08.
(e) Contracts&Purchasing was budgeted with Finance administration until FY2010-2011.
(f) City Recorder/Records was budgeted with Office services until FY 2008-09.
163
CITY OF TIGARD,OREGON
OPERATING INDICATORS BY FUNCTION/PROGRAM
For the last ten fiscal years
Functions/Programs 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GOVERNMENTAL ACTIVITIES
Community services
Police-number of traffic citations issued 6,006 6,800 6,979 6,383 6,925 9,101 7,021 8,308 8,939 7,177
Police-number of calls for service 53,754 51,062 51,000 51,377 50,115 51,158 49,358 52,226 52,420 48,840
Library-number of items in collection 125,570 143,500 156,500 176,210 193,710 216,110 237,110 244,154 250,454 245,000
Library-materials checked out each year 728,250 850,000 918,540 1,131,093 1,249,462 1,462,304 1,507,248 1,522,422 1,459,334 1,385,376
Public works
Acres of park land maintained 176 176 180 184 189 189 233 243 248 253
Crack sealing completed annually(linear feet) 150,000 151,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000
Vehicles maintained to industry standard 144 148 150 153 158 160 149 149 148 157
Community development
Number of inspections(Tigard) 21,000 19,550 23,000 23,500 7,778 8,700 9,990 10,000 12,500 12,382
Number of permits(all types)in Tigard 3,600 3,351 4,500 4,850 2,278 3,025 3,220 3,047 3,049 3,404
Number of development applications 430 374 507 450 508 370 370 381 357 341
Policy and administration
Number of job applications 1,900 2,000 2,000 2,300 2,215 1,900 1,000 1,100 2,500 2,000
Laptops and computers to maintain 445 500 540 435 451 488 491 491 503 523
Insured value of city's real property(in millions) 39 41 46 74 78 82 82 82 82 82
Number of utility bills sent** 109,854 112,775 113,502 115,574 114,500 116,800 176,274 236,389 238,400 241,500
Average fine amount collected 78 97 90 94 90 90 126 126 140 140
BUSINESS-TYPE ACTIVITIES
Sewer
Miles of sewer lines cleaned(annual goal) 49 51 52 53 47 41 41 41 42 42
Miles of sewer lines video inspected(annual goal) 26 22 22 23 23 23 23 23 24 21
Stormwater
Miles of stormwater lines cleaned 14 29 30 44 30 31 31 31 32 21
Number of water quality facilities*** 62 70 73 75 78 72 90 90 125 126
Total number of catch basins cleaned 3,915 4,045 4,150 4,915 4,437 4,437 4,368 4,368 4,368 4,368
Water
Number of accounts 17,022 17,300 17,400 17,870 17,900 17,900 18,129 18,265 18,350 18,350
**City of Tigard started monthly utility billing in January 2011.
***GIS data improvement
Source:City of Tigard Finance Department
164
CITY OF TIGARD,OREGON
CAPITAL ASSETS STATISTICS BY FUNCTION
For the last ten fiscal years
Functions/Programs 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GOVERNMENTAL ACTIVITIES
Community services
Police stations 1 1 1 1 1 1 1 1 1 1
Library buildings 1 1 1 1 1 1 1 1 1 1
Public works
Number of parks 13 13 13 13 14 14 14 18 20 20
Acres of park and greenspaces 347.0 347.0 348.0 348.0 396.0 396.0 435.4 447.0 493.0 499.0
Miles of streets 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0
Community development
See Note
Policy and administration
City-owned building facilities 5 5 5 5 5 5 5 5 5 5
BUSINESS-TYPE ACTIVITIES
Sewer
Total miles of sanitary sewer lines 148.0 152.8 160.4 160.4 161.0 162.8 164.5 166.1 166.9 166.9
Stormwater
Total miles of stormwater lines* 113.0 116.6 130.9 131.0 131.0 131.0 131.0 131.0 126.0 130.0
Number of water quality facilities* 62 62 77 77 79 79 92 92 125 126
Water
Water mains in miles 220 224 225.1 225.1 225.1 235.0 245.0 248.0 248.0 248.0
Number of reservoirs 13 13 13 13 13 13 13 13 13 13
Source:City of Tigard Finance Department
*GIS data improvement
Note:No capital assets indicators are available for development services functions.
165
Audit Comments and
Disclosure Requirements
166
INDEPENDENT AUDITOR'S REPORT
REQUIRED BY OREGON STATE REGULATIONS
0
/ 1 City Council
City Tigard
Tigard,, Oregg
on
TKII We have audited, in accordance with auditing standards generally accepted in the
United States of America, the financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund
Talbot,Korvola information of the City of Tigard, Oregon (the City) as of and for the year ended June
&Warwick,LLP 30, 2014, which collectively comprise the City's basic financial statements and have
Certifled Public Accountants issued our report thereon dated December 16, 2014.
s Consultants
COMPLIANCE
ACHIEVE MORE
As part of obtaining reasonable assurance about whether the City's financial
statements are free of material misstatement, we performed tests of its compliance
4800 Meadows Road,Suite 200 with certain provisions of laws, regulations, contracts, and grants, including the
Lake Oswego,Oregon 97o35 4293 provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules
P503.274.2849 162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon
F503.274.2853 Municipal Corporations, noncompliance with which could have a direct and material
www.tkw.com effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion.
We performed procedures to the extent we considered necessary to address the
required comments and disclosures which included, but were not limited to the
following:
• Deposit of public funds with financial institutions (ORS Chapter 295).
• Indebtedness limitations, restrictions and repayment.
• Budgets legally required (ORS Chapter 294).
• Insurance and fidelity bonds in force or required by law.
• Highway revenues used for public highways, roads, and streets.
• Authorized investment of surplus funds (ORS Chapter 294).
• Public contracts and purchasing (ORS Chapters 279A, 279B, 279C).
MCGLADREY ALLIANCE NJicGiadrey
The McGladrey Alliance is a premier affiliation of independent accounting andX47sulting firms. The McGladrey Alliance member firms mainsail their name,
autonomy and independence and are responsible for their own client fee arrangements,delivery of services and maintenance of client relationships.
INDEPENDENT AUDITOR'S REPORT
REQUIRED BY OREGON STATE REGULATIONS (Continued)
Page 2
COMPLIANCE (Continued)
In connection with our testing, nothing came to our attention that caused us to believe the City
was not in substantial compliance with certain provisions of laws, regulations, contracts, and
grants, including the provisions of Oregon Revised Statutes as specified in Oregon
Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of
Oregon Municipal Corporations except as follows:
• The City had $39 million of funds in the Local Government Investment Pool (LGIP) at June
30, 2014, in excess of the limitation set forth by ORS 294.810.
• The City had an over expenditure of$2,155 in the Bancroft Bond Debt Service Fund.
• The Urban Renewal Agency Capital Projects Fund has a deficit fund balance on a GAAP
basis of$752,925 as of June 30, 2014 due to the treatment of interfund loans.
OAR 162-10-0230 INTERNAL CONTROL
In planning and performing our audit of the financial statements, we considered the City's
internal control over financial reporting to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
RESTRICTION ON USE
This report is intended solely for the information and use of the Audit Committee, City Council,
Oregon Secretary of State Audits Division, and management and is not intended to be and
should not be used by anyone other than these specified parties.
7Jjr / -j & We
Lake Oswego, Oregon
December 16, 2014
168