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10-24-2011 Presentation: Audit ReportR M1� WOODBURN I n co rpo r ted 9889 Al October 24, 2011 TO: Mayor and City Council through City Administrator FROM: Ignacio Palacios, Finance Director SUBJECT: Audit Report RECOMMENDATION Accept report BACKGROUND Per state statute annual audits of municipal governments are required. Audited financial statements provide the City Council and the public assurance that the City is complying with accounting standards and meeting state and applicable federal regulations. The attached 2009/10 Financial Statements meet those requirements and are presented for your review. DISCUSSION: The good news is that the City has received a "clean audit" with an unqualified auditor's opinion for FY 2009/10 (which is the best opinion we could have hoped for). Councilors will note that the Independent Auditor's Report states: "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 assurances about whether the basic financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement ... In our opinion the financial statements referred to above present fairly, in all material respects, the respective financial position of the government activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Woodburn, Oregon as of June 30, 2010 and the respective changes in position and cash flows, where applicable, thereof for the year ended, in conformity Agenda Item Review: City Administrator City Attorney Finance Mayor and City Council October 24, 2011 Page 2 with accounting principles generally accepted in the United States of America." The presentation of the FY 2009/10 audit represents the resolution of several outstanding challenges overcome by the City including turnover in critical staff, locating original source documents to reconcile balances, fixed asset corrections, preparation of audit schedules, etc. Hundreds of hours were expended in ensuring that the fund balances were reconciled and adjusted to the general ledger. The Finance department has spent significant time reviewing, improving and enhancing policies and procedures to ensure that the financial reporting is reliable and useful to the City's Departments, Public and City Council. As a result of this investment in time, future audits will be easier and should allow completion in a timelier manner. The Council can expect the 2010/11 audit in January. FINANCIAL IMPACT Audit fees were budgeted as part of the adopted budget. The contracted amount ($37,500) did not exceed amounts budgeted. CITY OF WOODBURN, OREGON Annual Financial Report Year Ended June 30, 2010 Prepared by City of Woodburn - Department of Finance (page intentionally left blank) CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page INTRODUCTORYSECTION Principal Officials vi FINANCIAL SECTION INDEPENDENT A UDITOR'S REPORT 7 -8 MANAGEMENT'S DISC USSIONAND ANALYSIS 9 -14 BASIC FINANCIAL STATEMENTS Government -wide Financial Statements Statement of Net Assets 17 Statement of Activities 18 Fund Financial Statements Balance Sheet - Governmental Funds 20 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 22 Statement of Net Assets - Proprietary Funds 24 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 26 Statement of Cash Flows - Proprietary Funds 29 -31 Notes to Basic Financial Statements 34 -58 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund 60 Housing Rehabilitation Fund 61 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Construction Fund 64 Street /Storm Capital Improvement Fund 65 Street SDC Fund 66 Nonmaj or Governmental Funds Combining Balance Sheet 68 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 73 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Reserve Fund 78 Transit Fund 79 Building Fund 80 Search and Seizure Fund 81 Weed and Seed Fund 82 Revenue Sharing Fund 83 RSVP Fund 84 Cable Franchise Fund 95 CITY OF WOODBURN, OREGON TABLE OF CONTENTS FINANCIAL SECTION (Continued) OTHER SUPPLEMENTARY INFORMATION (Continued) Nonmajor Governmental Funds (Continued) Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Continued) Streets Fund Local Gas Tax Fund Storm Fund Library Endowment Fund Museum Endowment Fund Economic Development Fund Police Construction Fund Special Assessment Fund Parks SDC Fund Storm SDC Fund PW Facility Construction Fund Equipment Replacement Fund GO Debt Fund Bancroft Bond Fund Urban Renewal Debt Fund Nonmajor Proprietary Funds Combining Statement of Net Assets - Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Enterprise Funds Combining Statement of Cash Flows - Enterprise Funds Schedules of Revenues, Expenditures and Changes in Net Assets - Budget (Non -GAAP Basis) and Actual — Enterprise Funds Water Fund Sewer Fund WWTP Construction Fund WWDC Fund Sewer Capital Improvement Fund Water SDC Fund Sewer SDC Fund Internal Services Funds Combining Statement of Net Assets - Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Internal Service Funds Combining Statement of Cash Flows - Internal Service Funds Schedules of Revenues, Expenses and Changes in Net Assets (Budgetary Basis) - Budget and Actual Information Services Fund Control Stores Fund Insurance Fund Technical and Environmental Services Fund Building Maintenance Fund Other Financial Schedules Schedule of Property Tax Transactions and Outstanding Balances Schedule of Debt Principal and Bond Interest Transactions Schedule of Future Debt Service Requirements Page 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 102 104 106 108 109 110 111 112 III 114 116 118 120 122 123 124 125 126 128 130 134 -141 CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page REGULATORYSECTION INDEPENDENT A UDITOR'S REPORT REQUIRED BY OREGON STATE REGULATIONS 143-144 CITY OF WOODBURN, OREGON JUNE 30, 2010 MAYOR AND COUNCIL MEMBERS Name Term Expires Mayor Kathryn Figley December 31, 2012 601 S. Settlemeier Woodburn, OR 97071 Council Members Richard Pugh December 31, 2012 1880 Woodland Avenue Woodburn, OR 97071 J. Mel Schmidt December 31, 2012 840 Hermanson Street Woodburn, OR 97071 Eric Morris December 31, 2012 1505 Hardcastle Avenue Woodburn, OR 97071 Pete McCallum December 31, 2014 370 Ironwood Terrace Woodburn, OR 97071 Jim Cox December 31, 2014 1530 Ranier Way Woodburn, OR 97071 Frank Lonergan December 31, 2014 245 N 2nd Street Woodburn, OR 97071 Staff Scott Derickson, City Administrator N. Robert Shields, City Attorney Ignacio Palacios, Finance Director Vi GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 475 Cottage Street NE, Suite 200, Salenz, Oregon 97301 (503) 581 -7788 INDEPENDENT A UDITOR'S REPORT Honorable Mayor and Commission Members City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and aggregate remaining fund information of the City of Woodburn, Oregon as of and for the year ended June 30, 2010, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Woodburn, Oregon as of June 30, 2010 and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Management's Discussion and Analysis (MD &A) on pages 9 through 14 and the budgetary comparison schedules on pages 60 through 126 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures to the MD &A, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Woodburn's basic financial statements. The combining and individual fund financial statements and other financial schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The other financial schedules 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 on them. GROVE, MUELLER & SWANK, P. C. CERTIFIED PUBLIC ACCO UNTANTS By: Charles A. Swank, A Shareholder * *, 2011 -8- CITY OF WOODBURN Year Ended June 30, 2010 MANAGEMENT'S DISCUSSION AND ANALYSIS The Management's Discussion and Analysis of the City of Woodburn's Annual Financial Report (AFR) presents a discussion and analysis of the City's financial performance during the fiscal year ended June 30, 2010. The information presented here should be considered in conjunction with the financial statements included in this report. FINANCIAL HIGHLIGHTS June 30, 2010 2009 Net assets $ 101,931,654 $ 97,457,839 Change in net assets 4,473,815 (13,596) Net assets of governmental activities 65,932,008 62,797,885 Net assets of business -type activities $ 35,999,646 $ 34,659,954 OVERVIEW OF THE FINANCIAL STATEMENTS Change $ 4,473,815 4,487,411 3,134,123 $ 1,339,692 This discussion and analysis is intended to serve as an introduction to the City of Woodburn's basic financial statements. The basic financial statements include three components: the government -wide financial statements, the fund financial statements and notes to the financial statements. This report also contains other required supplementary information. Government -wide financial statements. The government -wide financial statements present the net assets (statement of net assets) and results of operations (statement of activities) of the total reporting government. Included are all governmental and business -type assets, liabilities and activities of the City. The measurement focus and basis of accounting are the same for the entire entity. The measurement focus is on all economic resources of the fund, including current financial resources (assets) and non - current financial resources (capital assets) and the related current and non - current liabilities and equity accounts. Both government -wide statements are prepared using the accrual basis of accounting, which is similar to the methods used by most businesses and takes into account all revenues and expenses connected with the fiscal year, even if cash involved has not been received or paid. The statement of net assets presents information on all the City of Woodburn's assets and liabilities, with the difference between the two reported as net assets. Increases or decreases in net assets may indicate whether the City's financial position is improving or deteriorating. The statement of activities presents the expenses incurred in providing services to the public and the revenues associated with those activities for both governmental and business -type activities. The statement of activities begins with expenses by function. To these functions are applied charges for services, operating grants and contributions and capital grants and contributions. The resulting sums, with some adjustments, represent charges to general taxpayers and may equate to the nearest that governments can determine the "bottom line." The government -wide financial statements are divided into two categories. Governmental activities are services funded through property taxes and intergovernmental revenues. The governmental activities for the City of -9- Woodburn include general government, library services, community services, public safety, planning, public transit and streets. Business -type activities are operations funded primarily through charges to external users of goods and services. Business -type activities include water, wastewater and stormwater. Fund Financial Statements. A fund is a fiscal and accounting entity with a self - balancing set of accounts that is used to segregate resources that are restricted to a particular activity. The use of funds deters commingling of resources designated for a specific purpose, prevents unauthorized transfer of surpluses, and ensures compliance with legal and contractual requirements. The City of Woodburn has three types of fund categories: governmental funds and proprietary funds. The City has two fiduciary funds. Governmental Funds. 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 current sources and uses of spendable resources and use the modified accrual basis of accounting. Operating statements include all sources and uses of financial resources, and display the excess of revenues and other financial sources over (under) expenditures and other uses. Included in the balance sheet are liquid assets and receivables that will be converted into cash currently and short-term liabilities, including payables to vendors and employees. Unmatured bond principal or liabilities for compensated absences not to be paid in the fiscal year are not included. Because the governmental fund statements do not encompass the long -term focus of the government -wide statements, reconciliations are provided on the subsequent page of the governmental fund statements. The emphasis is on major funds that account for the predominant assets and activities of all funds. The City of Woodburn maintains twenty -six individual governmental funds. Information is presented separately for the General Fund, Housing Rehabilitation Fund, General Construction Fun, Street /Storm Capital Improvement Fund and Street SDC Fund in the Governmental Fund Balance Sheet and Statement of Revenue, Expenditures and Changes in Fund Balances. The other governmental funds are combined into a single, aggregated presentation. Information for these non -major governmental funds is provided in the form of combining statements. The City of Woodburn adopts an annual appropriated budget for all of its funds. Budgetary comparison statements, demonstrating compliance with this budget, have been provided. Proprietary Funds. The City of Woodburn maintains two different types of proprietary funds: enterprise and internal service funds. These funds are used to show activities that operate more like those of commercial enterprises. Fees are charged for services provided, both to outside customers and to other units of the City of Woodburn. Enterprise funds are presented as business -type activities in the government -wide financial statements. The City of Woodburn uses enterprise funds to account for its water, wastewater and stormwater activities. Internal service funds account for activities furnishing goods or services to other units of the government. Charges for these services are on a cost - reimbursement basis. The internal services funds include public works fleet, facility, information services, public works administration and engineering services. The internal service funds are reported with governmental activities in the government -wide financial statements. Proprietary fund statements provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water, Wastewater and Stormwater Funds. The internal service funds are combined into a single column in the proprietary fund financial statements. Notes to the Financial Statements. The notes to the financial statements are an integral part of the basic financial statements and should be read along with them. The notes provide additional information necessary to communicate the financial position of the City of Woodburn. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required and supplementary information concerning the City of Woodburn. -10- GOVERNMENT -WIDE FINANCIAL ANALYSIS The City of Woodburn had $146,691,529 in total assets and $44,759,875 in total liabilities, resulting in combined net assets of $101,931,654 for governmental and business -type activities. The largest component of the City's net assets, $79,262,840 or 78 %, reflects its investment in capital assets (i.e., land, buildings, equipment and infrastructure, less any related debt outstanding that was needed to acquire or construct the assets). The City of Woodburn uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its 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 the capital assets themselves cannot be used to liquidate these liabilities. State gas tax and grants are restricted by external sources and systems development charges are restricted by ordinance. Governmental Capital Assets, net of depreciation, increased $4,148,976 over the prior year due to completion of the Front Street project, and continuation of the Centennial Park, Greenway and Fifth Street projects. Increases to the Governmental Capital Assets should continue to decrease year over year as the various projects are completed. Business -Type Capital Assets, net of depreciation increased $369,502 over the prior year due to the continuation of the wastewater treatment plant upgrade. It should be noted that Business -Type Capital Assets will continue to increase as the next phases of the wastewater treatment plant upgrade begin. Total liabilities for both Governmental and Business -type activities decreased by $782,930 over the prior year this due to the repayment of long -term debt. Overall, the City's financial position changed by $4,487,411(or 4.6 %). This is due mainly to the addition and completion of several capital projects, as noted above. Statement of Net Assets The following table reflects the condensed Statement of Net Assets compared to the prior year. (amounts in thousands) June 30, 2010 June 30, 2009 Changes Govern- Business Govern- Business Govern- Business mental Type Total mental Type Total mental Type Total Cash and investments S 16,155 S 7,924 S 24,079 S 17,662 S 8,516 S 26,178 S (1,507) S (592) S (2,099) Other assets 2,401 1,427 3,828 2,256 551 2,807 145 876 1,021 Capital assets 56,381 62,404 118,785 52,232 62,034 114,266 4,149 370 4,519 Total Assets 74,937 71,755 146,692 72,150 71,101 143,251 2,787 654 3,441 Other liabilities 1,052 1,214 2,266 661 1,004 1,665 391 210 601 Long -term liabilities 7,953 34,541 42,494 8,122 35,756 43,878 (169) (1,215) (1,384) Total Liabilities 9,005 35,755 44,760 8,783 36,760 45,543 222 (1,005) (783) Net assets Invested in capital assets, net of debt 49,007 30,256 79,263 44,544 26,312 70,856 4,463 3,944 8,407 Restricted 10,078 778 10,856 8,939 7,750 16,689 1,139 (6,972) (5,833) Unrestricted 6,847 4,966 11,813 9,315 598 9,913 (2,468) 4,368 1,900 Total NetAssets S 65,932 S 36,000 S 101,932 S 62,798 S 34,660 S 97,458 S 3,134 S 1,340 S 4,474 Governmental Activities The City's net assets from governmental activities increased $3,134,123 (4.9 %) from 2008 -09 to 2009 -10. -11- Business -type Activities The City's net assets from business -type activities increased $1,339,692 (3.9 %) from 2008 -09 to 2009 -10. Statement of Activities The following table reflects the condensed Statement of Activities compared to the prior year. (amounts in thousands) June 30, 2010 June 30, 2009 Changes Govern- Business Govern- Business Govern- Business mental Type Total mental Type Total mental Type Total REVENUES Program Revenues Charges for services $ 2,426 $ 8,216 $ 10,642 $ 1,118 $ 7,956 $ 9,074 $ 1,308 $ 260 $ 1,568 Operating grants and contributions 3,104 - 3,104 202 - 202 2,902 - 2,902 Capital grants and contributions 235 205 440 832 658 1,490 (597) (453) (1,050) Total Program Revenues 5,765 8,421 14,186 2,152 8,614 10,766 3,613 (193) 3,420 General Revenues Taxes 8,567 - 8,567 8,410 - 8,410 157 - 157 Franchise fees 1,679 - 1,679 1,434 - 1,434 245 - 245 Other revenues 797 983 1,780 2,720 175 2,895 (1,923) 808 (1,115) Total General Revenues 11,043 983 12,026 12,564 175 12,739 (1,521) 808 (713) Total Revenues 16,808 9,404 26,212 14,716 8,789 23,505 2,092 615 2,707 Transfers 717 (717) - (22) 22 - 739 (739) - Expenses General government 2,2% - 2,2% 3,756 3,756 (1,460) - (1,460) Public safety 5,738 5,738 5,307 5,307 431 431 Highways and streets 2,635 2,635 2,551 2,551 84 84 Culture and recreation 3,409 3,409 2,303 2,303 1,106 1,106 Interest 313 - 313 373 - 373 (60) (60) Water - 3,185 3,185 - 3,153 3,153 - 32 32 Wastewater - 4,162 4,162 - 5,882 5,882 - (1,720) (1,720) Total Expneses 14,391 7,347 21,738 14,290 9,035 23,325 101 (1,688) (1,587) Changes in Net Assets 3,134 1,340 4,474 404 (224) 180 2,730 1,564 4,294 Beginning Net Assets 62,798 34,660 97,458 62,394 34,884 97,278 404 (224) 180 Ending Net Assets $ 65,932 $ 36,000 $ 101,932 $ 62,798 $ 34,660 $ 97,458 $ 3,134 $ 1,340 $ 4,474 Governmental Activities. Total revenues for the City of Woodburn's governmental activities were $16,807,341 for the fiscal year ended June 30, 2010. Approximately 51% of the total revenue for the governmental activities was derived from property taxes and approximately 20% of the total revenue is from grants. Total expenses for governmental activities were $14,390,618 and net transfers in were $717,400, resulting in a $3,134,123 increase in net assets. The majority of the governmental activities revenue was used to fund general governmental activities, which accounts for approximately 16% of the total governmental activities expense. Public Safety, Culture and Recreation and Highways and Streets expenses account for 82% of the total, and interest on long -term debt expenses is approximately 2% of total governmental activities expenses. Business -Type Activities. Revenues of business -type activities totaled $9,404,703 for the current fiscal year. These activities generated program revenues of $8,421,208, $40,630 in general revenues and $942,865 in loan proceeds. Approximately 88% of the total business -type activities revenue was derived from charges for services. -12- The total expenses for business -type activities were $7,347,611 and net transfers out were $717,400 , resulting in an increase of net assets by $1,339,692. Business -type activities for the City of Woodburn consist of operations for water and wastewater services. FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted previously, the City of Woodburn uses fund accounting to segregate resources that are restricted to a particular activity. An unreserved fund balance represents the excess of the assets of the fund over its liabilities. Because the fund financial statements focus on current sources and uses of spendable resources, unreserved fund balances relating to each fund may be useful in assessing the government's net resources available. Governmental Funds. At the end of the fiscal year, there were $6,847,100 of unrestricted net assets of the governmental funds, a decrease of $2,467,551 from the prior year. The reduction is directly related to a drop in general construction projects. The City's governmental funds include the General Fund, the Housing Rehabilitation, General Construction, the Street /Storm Capital Improvement and Street SDC funds and other non- major funds. The General Fund is the chief operating fund of the City. At the end of the fiscal year, a budgetary fund balance of $2,618,413 was reported by the General Fund. The fund balance increased by $43,206 from the previous year. The City of Woodburn reports four other major governmental funds. These funds had a combined unreserved fund balance of $7,792,361 a decrease of $987,983. Proprietary Funds. Unrestricted net assets of the proprietary funds equaled $4,965,627 at the end of the current fiscal year. The total increase in net assets from the previous year equaled $1,339,692 (or 3.9 %) this due to completion of capital projects. Unrestricted net assets for the Water and Wastewater Funds was $(385,175) and $(1,338,395), respectively, due to the offsetting debt on capital assets. Water fees charged to customers remained constant to cover operational costs and debt service. Additionally, the combined unrestricted net assets in the Wastewater Treatment Construction Plant Fund and Water Well Construction Fund was $6,599,815. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended due to unanticipated costs that occurred during the year. These unanticipated costs included grants for police equipment and other minor increases for personnel. Actual revenues (budgetary basis), including beginning fund balance exceeded budgeted amounts. General Fund expenditures ended 18% below budgeted amounts primarily due to management efforts to maintain low costs throughout the fiscal year. There were no capital projects carried forward. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City of Woodburn's investment in capital assets for its governmental and business -type activities equaled $57,483,170 and $62,403,840, respectively, at the end of the current fiscal year, net of accumulated depreciation. This investment includes land, buildings, improvements, equipment, and infrastructure. Additional information about the City's capital assets is presented in the notes to the financial statements. -13- Long -term Debt. At the end of the current fiscal year, long -term debt outstanding for the governmental activities totaled $7,225,861 (excluding compensated absences payable), compared to the prior year of $6,417,310 . For the business -type activities, total long -term debt equaled $2,229,318 (excluding compensated absences payable) compared to the prior year of $125,000 . The increase in business debt was the result of a newly acquired loan. Additional information about the City's long -term debt outstanding is presented in the notes to the financial statements. (amounts in thousands) G.O. Bonds Loans Payable Capital Leases Total Total Total Change $ 16,246 $ 16,909 $ (663) 25,282 26,472 (1,190) 148 52 96 $ 41,676 $ 43,433 $ (1,757) ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES Due to reductions in the real property valuations, it is expected that future property taxes increases will be less than the three percent allowed annually on existing real property value as compression on certain properties will be realized. Currently, the housing market in Marion is depressed due to the national housing slump and economic conditions. We continue to expect revenues to be impacted by the current national and local conditions. REQUESTS FOR INFORMATION This financial report is designed to provide the City of Woodburn's citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. Questions about this report or requests for additional financial information should be addressed to the City of Woodburn, 270 Montgomery Street, Woodburn, Oregon 97071. -14- Governmental Change 2010 2009 Dollar Percent Land $ 22,567,381 $ 21,636,467 $ 930,914 4.3% Construction in progress 7,423,575 10,937,334 (3,513,759) -32.1% Buidlings and improvements 5,324,671 4,965,639 359,032 7.2% Equipment and vehicles 1,833,420 1,824,817 8,603 0.5% Infrastructure 19,231,937 12,867,751 6,364,186 49.5% $ 56,380,984 $ 52,232,008 $ 4,148,976 7.9% Business-Type Change 2010 2009 Dollar Percent Land $ 1,783,816 $ 1,783,816 $ - 0.0% Construction in progress 2,765,340 317,103 2,448,237 772.1% Buidlings and improvements 41,329,488 42,859,336 (1,529,848) -3.6% Equipment and vehicles 667,653 708,413 (40,760) -5.8% Infrastructure 15,857,543 16,365,670 (508,127) -3.1% $ 62,403,840 $ 62,034,338 $ 369,502 0.6% Long -term Debt. At the end of the current fiscal year, long -term debt outstanding for the governmental activities totaled $7,225,861 (excluding compensated absences payable), compared to the prior year of $6,417,310 . For the business -type activities, total long -term debt equaled $2,229,318 (excluding compensated absences payable) compared to the prior year of $125,000 . The increase in business debt was the result of a newly acquired loan. Additional information about the City's long -term debt outstanding is presented in the notes to the financial statements. (amounts in thousands) G.O. Bonds Loans Payable Capital Leases Total Total Total Change $ 16,246 $ 16,909 $ (663) 25,282 26,472 (1,190) 148 52 96 $ 41,676 $ 43,433 $ (1,757) ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES Due to reductions in the real property valuations, it is expected that future property taxes increases will be less than the three percent allowed annually on existing real property value as compression on certain properties will be realized. Currently, the housing market in Marion is depressed due to the national housing slump and economic conditions. We continue to expect revenues to be impacted by the current national and local conditions. REQUESTS FOR INFORMATION This financial report is designed to provide the City of Woodburn's citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. Questions about this report or requests for additional financial information should be addressed to the City of Woodburn, 270 Montgomery Street, Woodburn, Oregon 97071. -14- BASIC FINANCIAL STATEMENTS -15- (page intentionally left blank) -16- CITY OF WOODBURN, OREGON STATEMENT OF NET ASSETS JUNE 30, 2010 Total Net Assets $ 65,932,008 $ 35,999,646 $ 101,931,654 -17- Governmental Business -type Activities Activities Totals ASSETS Cash and investments $ 16,155,730 $ 7,923,686 $ 24,079,416 Accounts receivable 761,808 1,428,279 2,190,087 Property taxes receivable 755,707 - 755,707 Assessment liens receivable 866,701 - 866,701 Internal balances 1,313 (1 313) - Prepaid expenses 5,823 - 5,823 Inventories 8,971 - 8,971 Nondepreciable capital assets 29,990,956 4,549,156 34,540,112 Capital assets, net of depreciation 26,390,028 57,854,684 84,244,712 Total Assets 74,937,037 71,754,492 146,691,529 LIABILITIES Accounts payable 938,417 601,438 1,539,855 Deposits payable 87,952 81,663 169,615 Interest payable 25,671 530,995 556,666 Noncurrent liabilities: Due within one year 632,788 2,154,818 2,787,606 Due in more than one year 6,741,234 32,147,962 38,889,196 Accrued compensated absences 369,558 201,189 570,747 Other post employment benefits 209,409 36,781 246,190 Total Liabilities 9,005,029 35,754,846 44,759,875 NET ASSETS Investment in capital assets (net of related debt) 49,006,962 30,255,878 79,262,840 Restricted for: Debt service 1,217,031 - 1,217,031 Construction 8,487,801 778,141 9,265,942 Grants and donations 373,114 - 373,114 Unrestricted 6,847,100 4,965,627 11,812,727 Total Net Assets $ 65,932,008 $ 35,999,646 $ 101,931,654 -17- CITY OF WOODBURN, OREGON STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2010 FUNCTIONSIPROGR"S Governmental Activities: General government Public safety Highways and streets Culture and recreation Interest on long -term debt Total Governmental Activities Business -type Activities: Water Sewer Total Business -type Activities Total Activities General Revenues: Property taxes Franchise fees Intergovernmental Fines and forfeitures Miscellaneous Debt service principal Unrestricted investment earnings Capital contributions Gain on disposition of assets Proceeds from issuance of debt Total General Revenues Transfers Change in Net Assets Net Assets, July 1, 2009 Net Assets, June 30, 2010 Program Revenues Fees, Fines Operating Capital and Charges Grants and Grants and Expenses for Services Contributions Contributions $ 2,295,657 $ 5,737,694 2,634,760 3,408,766 313,741 14,390,618 97,157 $ 790,859 722,131 815,397 2,425,544 534,007 $ - 24,207 - 2,404,141 216,559 141,897 18,825 3,104,252 235,384 3,185,481 3,327,344 - 4,162,130 4,888,941 - 7,347,611 8,216,285 - $ 21,738,229 $ 10,641,829 $ 3,104,252 $ 85,223 119,700 204,923 440,307 -18- Net (Expenses) Revenues and Changes in Net Assets Governmental Business -type Activities Activities Totals $ (1,664,493) $ - $ (1,664,493) (4,922,628) - (4,922,628) 708,071 - 708,071 (2,432,647) - (2,432,647) (313,741) - (313,741) $ 65,932,008 $ 35,999,646 (8,625,438) - (8,625,438) - 227,086 227,086 - 846,511 846,511 - 1,073,597 1,073,597 (8,625,438) 1,073,597 (7,551,841) 8,566,745 - 8,566,745 1,679,254 - 1,679,254 496,428 - 496,428 299,734 40,630 340,364 - 942,865 942,865 11,042,161 983,495 12,025,656 717,400 (717,400) - 3,134,123 1,339,692 4,473,815 62,797,885 34,659,954 97,457,839 $ 65,932,008 $ 35,999,646 $ 101,931,654 The accompanying notes are an integral part of the financial statements. -19- CITY OF WOODBURN, OREGON BALANCE SHEET- GOVERNMENTAL FUNDS JUNE 30, 2010 ASSETS Cash and investments Accounts receivable Property taxes receivable Assessment liens receivable Prepaid expenses Due from other funds Total Assets LIABILITIES AND FUND BALANCES Liabilities Accounts and deposits payable Due to other funds Deferred revenue Total Liabilities Fund Balances Unreserved, reported in: General fund Special revenue funds Capital projects fund Debt services fund Total Fund Balances Total Liabilities and Fund Balances -20- Housing General General Rehab Construction $ 2,682,649 $ 380,403 $ - 128,181 - 416,532 646,156 - - - 657,130 - 5,378 - - 182,073 - - $ 3,644,437 $ 1,037,533 $ 416,532 $ 441,383 $ 6,951 $ 243,960 4,592 - 88,863 580,049 657,130 - 1,026,024 664,081 332,823 - 373,452 - - - 83,709 2,618,413 - - 2,618,413 373,452 83,709 $ 3,644,437 $ 1,037,533 $ 416,532 -20- Street /Storm Other Capital Governmental Improvement Street SDC Funds Totals $ 552,376 $ 6,949,181 $ 5,073,726 $ 15,638,335 - - 213,095 757,808 - - 109,551 755,707 - - 209,571 866,701 - - - 5,378 - - - 182,073 $ 552,376 $ 6,949,181 $ 5,605,943 $ 18,206,002 $ 145,780 $ 20,577 $ 110,642 $ 969,293 - - 87,668 181,123 - - 308,073 1,545,252 145,780 20,577 506,383 2,695,668 - - - 373,452 - - 808,526 808,526 406,596 6,928,604 3,087,180 10,506,089 - - 1,203,854 3,822,267 406,596 6,928,604 5,099,560 15,510,334 $ 552,376 $ 6,949,181 $ 5,605,943 $ 18,206,002 -21- CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2010 REVENUES Taxes and assessments Licenses and permits Charges for services Intergovernmental Fines and forfeitures Miscellaneous Total Revenues EXPENDITURES Current operating: General government Public safety Highways and streets Culture and recreation Capital outlay Debt service Principal Interest Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCES, Beginning of year FUND BALANCES, End of year -22- Housing General General Rehab Construction $ 7,342,620 $ - $ - 1,176,653 - - 571,024 - - 434,027 - 466,520 665,977 - - 173,215 29,768 75,051 10,363,516 29,768 541,571 1,056,841 - - 5,488,103 - - 3,236,599 333,017 - - - 562,240 9,781,543 333,017 562,240 581,973 (303,249) (20,669) (123,259) - - (123,259) - - 458,714 (303,249) (20,669) 2,159,699 676,701 104,378 $ 2,618,413 $ 373,452 $ 83,709 -22- Street /Storm Nonmajor Capital Governmental Improvement Street SDC Funds Totals 1,492,459 $ 8,835,079 364,253 206,610 179,658 1,927,174 393,923 - 25,060 990,007 797,103 - 1,843,213 3,540,863 - - - 665,977 43,013 34,982 194,755 550,784 1,598,292 241,592 3,735,145 16,509,884 250,866 - 251,225 1,558,932 - - 35,825 5,523,928 - - 557,546 557,546 - - 1,252,681 4,822,297 1,605,260 862,644 1,588,711 4,618,855 - - 945,360 945,360 - - 292,918 292,918 1,856,126 862,644 4,924,266 18,319,836 (257,834) (621,052) (1,189,121) (1,809,952) 588,259 588,259 (309,000) (432,259) 279,259 156,000 (257,834) (621,052) (909,862) (1,653,952) 664,430 7,549,656 6,009,422 17,164,286 $ 406,596 $ 6,928,604 $ 5,099,560 $ 15,510,334 -23- CITY OF WOODBURN, OREGON STATEMENT OF NET ASSETS -PROPRIETARY FUNDS JUNE 30, 2010 ASSETS Current Assets Cash and investments Accounts receivable Prepaid expenses Inventories Due from other funds Total Current Assets Noncurrent Assets Due from other funds Nondepreciable capital assets Capital assets, net of depreciation Total Noncurrent Assets Total Assets LIABILITIES Current Liabilities Accounts payable Due to other funds Deposits Accrued interest payable Current portion of long -term liabilities Total Current Liabilities Noncurrent liabilities Compensated absences and OPEB payable Notes and bonds payable Total Noncurrent Liabilities Total Liabilities NET ASSETS Investment in capital assets (net of related debt) Restricted for construction Unrestricted Total Net Assets -24- Enterprise WWTP Water Sewer Construction $ 714,517 $ 423,223 $ 484,909 81,957 149,908 139,384 796,474 573,131 624,293 1,805,124 2,744,032 - 8,499,442 49,355,242 - 10,304,566 52,099,274 - 11,101,040 52,672,405 624,293 21,602 64,814 52,911 708 605 482,000 81,663 - - 359,316 171,679 - 601,851 1,552,967 - 1,065,140 1,790,065 534,911 116,509 121,461 - 13,377,648 18,770,314 - 13,494,157 18,891,775 - 14,559,297 20,681,840 534,911 (3,073,082) 33,328,960 - (385,175) (1,338,395) 89,382 $ (3,458,257) $ 31,990,565 $ 89,382 -24- Funds Water Total Total Well Nonnurjor Internal Proprietary Construction Funds Totals Service Funds Funds $ 5,522,896 $ 778,141 $ 7,923,686 $ 517,395 $ 8,441,081 1,057,030 - 1,428,279 4,000 1,432,279 - - 445 445 - - - 8,971 8,971 482,000 - 482,000 - 482,000 7,061,926 778,141 9,833,965 530,811 10,364,776 - - 2,131 2,131 - - 4,549,156 - 4,549,156 - - 57,854,684 507,368 58,362,052 - - 62,403,840 509,499 62,913,339 7,061,926 778,141 72,237,805 1,040,310 73,278,115 462,111 - 601,438 57,076 658,514 - - 483,313 1,768 485,081 - - 81,663 - 81,663 - - 530,995 - 530,995 - - 2,154,818 - 2,154,818 462,111 - 3,852,227 58,844 3,911,071 - - 237,970 82,715 320,685 - - 32,147,962 - 32,147,962 - - 32,385,932 82,715 32,468,647 462,111 - 36,238,159 141,559 36,379,718 - - 30,255,878 507,368 30,763,246 778,141 778,141 - 778,141 6,599,815 - 4,965,627 391,383 5,357,010 $ 6,599,815 $ 778,141 $ 35,999,646 $ 898,751 $ 36,898,397 -25- CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2010 OPERATING REVENUES Charges for services Intergovernmental Miscellaneous Total Operating Revenues OPERATING EXPENSES Personal services Materials and services Depreciation Total Operating Expenses OPERATING INCOME (LOSS) NONOPERA TING REVENUES (EXPENSES) Investment revenue Interest expense Transfers in Transfers out Total Nonoperating Revenue (Expenses) CHANGE IN NET ASSETS NETASSETS, Beginning of year NETASSETS, End of year $ (3,458,257) $ 31,990,565 $ 89,382 -26- Enterprise WWTP Water Sewer Construction $ 1,734,473 $ 2,533,557 $ 2,337,362 11,230 17,771 251 1,745,703 2,551,328 2,337,613 967,556 1,114,682 - 679,192 897,633 23,948 237,532 1,889,599 - 1,884,280 3,901,914 23,948 (138,577) (1,350,586) 2,313,665 3,486 2,270 2,578 - (5,567) (687,938) 1,645,274 16,663,339 - (14,475,395) (12,826,635) (12,965,212) 9,506,955 17,626,692 145,804 $ (3,458,257) $ 31,990,565 $ 89,382 -26- Funds Water Total Total Well Nonmajor Internal Proprietary Construction Funds Totals Service Funds Funds $ 1,580,368 $ - $ 8,185,760 $ 2,009,973 $ 10,195,733 942,865 - 942,865 - 942,865 1,273 - 30,525 19,487 50,012 2,524,506 - 9,159,150 2,054,004 11,213,154 - - 2,082,238 1,537,644 3,619,882 82 - 1,600,855 1,275,929 2,876,784 - - 2,127,131 35,458 2,162,589 82 - 5,810,224 2,849,031 8,659,255 2,524,424 - 3,348,926 (795,027) 2,553,899 26,595 5,701 40,630 1,986 42,616 (402,588) (436,407) (1,532,500) - (1,532,500) - - 18,308,613 704,625 19,013,238 (1,341,180) (579,128) (19,026,013) (1,717,173) (1,009,834) (2,209,270) 629,656 (1,579,614) 807,251 (804,911) 1,344,579 (165,371) 1,179,208 5,792,564 1,587,939 34,659,954 1,064,122 35,724,076 $ 6,599,815 $ 783,028 $ 36,004,533 $ 898,751 $ 36,903,284 The accompanying notes are an integral part of the financial statements. -27- CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS -PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2010 CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers Paid to suppliers Paid to employees Net Cash Provided by (Used in) Operating Activities CASH FLOWS FROM NON- CAPITAL FINANCING ACTIVITIES Received from (paid to) other funds Transfers in Transfers out Net Cash Provided by (Used in) Non - Capital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Proceeds from disposal of capital assets Principal paid on contracts/bonds payable Proceeds from debt System development revenue Interest paid Net Cash Provided by (Used in) Capital and Related Financing Activities CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Increase (Decrease) in Cash and Investments CASHAND INVESTMENTS, Beginning of year CASHAND INVESTMENTS, End of year 708 605 - 1,621,060 1,424,342 - (1,649,598) (945,583) (1,684,727) (27,830) 479,364 (1,684,727) (5,713) (118,575) - (556,801) (3,000,812) - 324,339 355,583 - - - 1697 9391 (238,175) (2,763,804) (687,938) 3.486 2.270 2.578 kij,rrub k1,JS4,GGj) k10j,u/_j) 728,287 410,046 787,316 $ 714,517 $ (1,124,177) $ 624,293 -28- WWTP Water Sewer Construction $ 1,734,641 $ 2,537,765 $ 2,454,406 (600,565) (760,857) (247,342) (885,327) (1,028,961) - 248,749 747,947 2,207,064 708 605 - 1,621,060 1,424,342 - (1,649,598) (945,583) (1,684,727) (27,830) 479,364 (1,684,727) (5,713) (118,575) - (556,801) (3,000,812) - 324,339 355,583 - - - 1697 9391 (238,175) (2,763,804) (687,938) 3.486 2.270 2.578 kij,rrub k1,JS4,GGj) k10j,u/_j) 728,287 410,046 787,316 $ 714,517 $ (1,124,177) $ 624,293 -28- Water Well Nonmajor Construction Funds $ 1,593,553 $ 462,029 2,055,582 Total Internal Totals Service Funds - $ 8,320,365 $ 2,048,962 - (1,146,735) (1,283,030) - (1,914,288) (1,537,644) - 5,259,342 (771,712) The accompanying notes are an integral part of the financial statements. -29- 2,848 - - 3,045,402 700,000 (1,341,180) (579,128) (6,200,216) (92,148) (1,341,180) (579,128) (3,153,501) 610,700 - - (124,288) - - - (3,557,613) - - - 679,922 - - 204,923 204,923 - (402,588) (436,407) (1,526,933) - (402,588) (231,484) (4,323,989) - 26,595 5,701 40,630 1,986 338,409 (804,911) (2,177,518) (159,026) 5,184,487 1,587,939 8,698,075 676,421 $ 5,522,896 $ 783,028 $ 6,520,557 $ 517,395 The accompanying notes are an integral part of the financial statements. -29- CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS (Continued) YEAR ENDED JUNE 30, 2010 WWTP RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Depreciation Change in assets and liabilities: Accounts receivable Deferred charges Inventory Prepaid expenses Accounts payable and accrued liabilities Customer deposits Compensated absences payable $ (138,577) $ (1,350,586) $ 2,313,665 237,532 1,889,599 - 7,593 (13,563) 116,793 130,561 87,966 - (51,934) 48,810 (223,394) (18,655) - - 97 779 95 771 - Net Cash Provided by (Used in) Operating Activities $ 248,749 $ 747,947 $ 2,207,064 -30- Water Well Nonmajor Construction Funds Total Internal Totals Service Funds $ 2,524,424 $ - $ 3,348,926 $ (795,027) - - 2,127,131 35,458 (930,953) - (820,130) (3,042) - - 218,527 - - - - (1,291) 461111 - 235,593 (5,810) - - (18,655) (2,000) - - 167,950 - $ 2,055,582 $ - $ 5,259,342 $ (771,712) The accompanying notes are an integral part of the financial statements. -31- (page intentionally left blank) The accompanying notes are an integral part of the financial statements. -32- NOTES TO BASIC FINANCIAL STATEMENTS -33- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2010 S UMMARY OF SIGNIFICANT ACCO UNTING POLICIES The financial statements of the City of Woodburn, Oregon (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard- setting body for establishing governmental accounting and financial reporting standards. The Financial Reporting Entity The City of Woodburn, Oregon is governed by an elected mayor and six council members who comprise the City Council. The City Council exercises supervisory responsibilities over the City operations, but day -to -day management control is the responsibility of a city administrator. All significant activities and organizations for which the City is financially accountable are included in the financial statements for the year ended June 30, 2010. There are certain governmental agencies and various service districts which provide services within the City. These agencies have independently elected governing boards and the City is not financially accountable for these organizations. Therefore, financial information for these agencies is not included in the accompanying basic financial statements. As defined by accounting principles generally accepted in the United States of America, the financial reporting entity consists of the primary government, as well as its component units, which are legally separate organizations for which the elected officials of the primary government are financially accountable. Financial accountability is defined as appointment of a voting majority of the component unit's board, and either a) the ability to impose will by the primary government, or b) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government. The City of Woodburn's financial statements include the Woodburn Urban Renewal Agency as a blended component unit. The City Council and Board of Directors of Woodburn Urban Renewal Agency are composed of the same individuals. The separately issued financial statements of the Woodburn Urban Renewal Agency may be obtained from the City, 270 Montgomery Street, Woodburn, Oregon 97071. Basic Financial Statements Basic financial statements are presented at both the government -wide and fund financial level. Both levels of statements categorize primary 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 reporting government as a whole. For the most part, the effect of interfund activity has been removed from these statements. These statements focus on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the fiscal period. These aggregated statements consist of the Statement of Net Assets and the Statement of Activities. -34- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued) The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 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, enterprise or fiduciary. Currently, the City has general, special revenue, internal service, capital projects, debt service and enterprise type funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are consolidated into a single column within each fund type in the financial section of the basic financial statements and are detailed in the other supplementary information. The government -wide and proprietary fund financial statements are accounted for using an economic resources measurement focus, whereby all assets and liabilities are included in the statement of net assets and the statement of fund net assets. The increases and decreases in those net assets are presented in the government -wide statement of activities and in the proprietary fund statement of revenues, expenses and changes in fund net assets. These funds use the accrual basis of accounting whereby revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. The City's government -wide and proprietary fund accounting and financial reporting practices are based on all applicable GASB pronouncements as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedures. The City has elected not to apply FASB guidance issued subsequent to November 30, 1989 to business -type activities and to enterprise funds, unless specifically adopted by the GASB. Interfund activity consists of transfers, services provided and/or used, reimbursements, advances and loans. As a general rule, the effect of interfund activity has been eliminated from the governmental -wide financial statements. Exceptions to this general rule include interfund services provided and/or used. Interfund services provided and/or used are accounted for as revenues and expenses since the elimination of such revenues and expenses would distort the direct costs and program revenues reported for the various functions. Amounts reported as program revenues in the statement of activities include (1) fines, fees and charges to customers or applicants for goods, services or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments. Grants and contributions not restricted are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Operating revenues and operating expenses are intermediate components within the proprietary fund statement of revenues, expenses and changes in fund net assets, and include only those transactions that constitute their principal, ongoing activities exclusive of investing or financing transactions. Significant operating revenues include charges for services and miscellaneous income. Significant operating expenses include personnel, materials and supplies, outside services, and depreciation. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. -35- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Definitions of Governmental Fund Types The General Fund is used to account for all financial resources not accounted for in another fund. Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The term "proceeds of specific revenues sources" means that the revenue sources for the fund must be from restricted or committed sources, specifically that a substantial portion of the revenue must be from these sources and be expended in accordance with those requirements. Capital Projects Funds are utilized to account for financial resources to be used for the acquisition or construction of capital equipment and facilities. Debt Service Funds are utilized to account for the accumulation of resources for, and the payment of, long -term debt principal and interest. Governmental Fund Financial Statements The governmental fund financial statements are accounted for using a current financial resources measurement focus, whereby only current assets and current liabilities generally are included in the balance sheet, and the statement of revenues, expenditures and changes in fund balances present increases and decreases in those net current assets. These funds use the modified accrual basis of accounting whereby revenues are recorded only when susceptible to accrual (both measurable and available). "Measurable" means that the amount of the transaction can be determined. "Available" is defined as being collectible within the current period or soon enough thereafter (60 days) to be used to liquidate liabilities of the current period. Expenditures other than interest on noncurrent obligations, are recorded when the fund liability is incurred. Real and personal property taxes are levied as of July 1 for each fiscal year on values assessed as of January 1. Property taxes are an enforceable lien on both real and personal property as of July 1 and are due and payable in three installments on November 15, February 15 and May 15. All property taxes are billed and collected by Clackamas County and remitted to the City. In the governmental fund financial statements, property taxes are reflected as revenues in the fiscal period for which they were levied, provided they are due, or past due and receivable within the current period, and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period (60 days). Otherwise, they are reported as deferred revenues. Intergovernmental revenues are recognized as revenues when all eligibility requirements are met. There are, however, essentially two types of intergovernmental revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the City; therefore, all eligibility requirements are determined to be met when the underlying expenditures are recorded. In the other, monies are virtually unrestricted as to the purpose of the expenditure and are usually revocable only for failure to comply with prescribed requirements; therefore, all eligibility requirements are determined to be met at the time of receipt, or earlier, if the susceptible accrual criteria are met. Licenses and permits, charges for services, fines and forfeits and miscellaneous revenues (except investment earnings) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. -36- Special assessments receivable and repayment of revolving loans are offset by deferred revenues. When both restricted and unrestricted resources are available for use, it is the City's practice to use restricted resources first, then unrestricted resources as they are needed. The reporting model sets forth minimum criteria (percentage of the assets, liabilities, receipts or disbursements of either fund category or the government and enterprise combined) for the determination of major funds. The City electively added funds as major funds, which either had debt outstanding or specific community focus. Nonmajor funds are combined in a column in the fund financial statements and detailed in the combining section. -37- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Fund Financial Statements (Continued) The City reports the following major governmental funds: General Fund Street Development Fund Downtown Urban Renewal Agency The City reports the following major proprietary funds: Water Fund Sewer Fund Storm Drain Fund Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reporting amounts of certain assets, liabilities, revenues and expenses as of and for the year ended June 30, 2010. Actual results may differ from such estimates. Cash and Investments Investments, included in cash and investments, are carried at cost which approximates fair value. For purposes of the statement of cash flows, the proprietary funds consider cash and cash equivalents to include the cash and investment common pool. These amounts have the general characteristics of demand deposit accounts in that the proprietary funds may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. Receivables and Deferred Revenues Receivables for state, county and local shared revenues, included in accounts receivable, are recorded as revenue in the governmental funds as earned. Receivables of the enterprise funds are recorded as revenue as earned. Property taxes receivable for the governmental fund types, which have been collected within sixty days subsequent to year end, are considered measurable and available and are recognized as revenues. All other property taxes are offset by deferred property tax revenues and, accordingly, have not been recorded as revenue. Property taxes receivable by the City represent the City's allocated share of delinquent property taxes and other amounts to be collected from property owners within Marion County, Oregon. Assessment liens in the governmental fund types are recognized as receivables at the time property owners are assessed for property improvements. All assessments receivable are offset by a deferred revenue account and, accordingly, have not been recorded as revenue. -38- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Inventory Inventory in the proprietary funds is stated at cost (first -in, first -out basis) and is charged to expense as used. Capital Assets Capital assets are stated at cost or estimated historical cost. Donated assets are recorded at fair market value at date of donation. Estimated fair market value of donated assets is determined based on engineering estimates of current cost or price indexed cost. Capital assets include land, right -of -way (included with land), buildings, improvements, equipment, infrastructure and other tangible and intangible assets costing over $5,000 used in operations that have initial useful lives extending beyond a single reporting period. Infrastructure are those capital assets that are stationary in nature and can be preserved for a significantly greater number of years than most other capital assets. Infrastructure reported in governmental activities consists of roads, bridges, sidewalks and traffic and lighting systems. Infrastructure reported in business -type activities consist of water, stormwater and wastewater collection systems. All capital assets, except for infrastructure in governmental activities prior to July 1, 1980, have been capitalized in the government -wide and proprietary fund financial statements. In accordance with the current financial resources measurement focus, capital assets are not capitalized in the governmental fund financial statements. All purchased capital assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Historical cost is measured by the cash or cash equivalent price of obtaining an asset, including ancillary charges necessary to place the asset into its intended location and condition for use. Donated capital assets are reported at their estimated fair value at the time of acquisition plus ancillary charges, if any. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Amounts expended for maintenance and repairs are charged to expenditures /expenses in the appropriate funds as incurred and are not capitalized. Capital assets are depreciated unless they are inexhaustible in nature (e.g., land and right -of- ways). Depreciation is an accounting process to allocate the cost of capital assets to expense in a systematic and rational manner to those periods expected to benefit from the use of capital assets. Depreciation is not intended to represent an estimate in the decline of fair market value, nor are capital assets, net of accumulated depreciation, intended to represent an estimate of the current condition of the assets, or the maintenance requirements needed to maintain the assets at their current level of condition. Depreciation is computed over the estimated useful lives of the capital assets. All estimates of useful lives are based on actual experience by City departments with identical or similar capital assets. Depreciation is calculated on the straight -line basis, except for infrastructure and improvements other than buildings reported in the governmental activities column of the government -wide financial statements, which are calculated using a composite depreciation method. The estimated useful lives of the various categories of assets are as follows: Buildings and improvements 40 years Water and Sewer Systems 20 - 50 years Infrastructure 20 - 50 years Equipment 10 - 20 years -39- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Assets (Continued) Upon disposal of capital assets, cost and accumulated depreciation are removed from the accounts and, if appropriate, a gain or loss on the disposal is recognized. Long -Term Debt Long -term debt directly related and expected to be paid from the enterprise funds is recorded in these funds. All other unmatured long -term debt is recorded on the statement of net assets. Repayment of general bonded debt will be made from debt service funds. Payment of vacation liabilities will be made primarily from the General Fund, Street Development Fund, Water Fund and Sewer Fund. Accrued Vacation Pay Accumulated vested vacation pay is accrued in the enterprise funds as it is earned by employees. In governmental fund types, the amounts, if any, expected to be liquidated with expendable available resources are accrued as liabilities of the funds and the amount payable from future resources is recorded on the statement of net assets. The accrued payables in the Statement of Net Assets is recorded as long -term in that the amount will not materially change. Sick pay, which does not vest, is recorded in all funds when leave is taken. Budget and Budgetary Accounting A budget is prepared for each fund in accordance with the modified accrual basis of accounting for all funds. Appropriations are made at the department level for the General Fund and the object level for all other funds. Expenditures may not legally exceed appropriations. Appropriations lapse at the end of each fiscal year. Budget amounts include original approved amounts and all subsequent appropriation transfers approved by the City Commission. After budget approval, the City Commission may approve supplemental appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. Management may not amend the budget. A supplemental budget requires hearings before the public, publications in newspapers and approval by the City Commission. ORGANIZATIONAND OPERATION The City's financial operations are accounted for in the following funds and account groups: Governmental Fund Types General Fund The General Fund accounts for activities of the City which are not accounted for in any other fund. Principal sources of revenue are property taxes, franchise fees and state and county shared revenues. Primary expenditures are for police and fire protection, recreation and general government. -40- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 ORGANIZATIONAND OPERATION (Continued) Governmental Fund Types (Continued) Special Revenue Funds The special revenue funds account for revenue derived from specific tax or other earmarked revenue sources, including state gas tax, grants and funds set aside to finance particular functions or activities. Funds included in this category are: Building Fund - This fund accounts for building permit revenue and associated operations. Search and Seizure Fund - This fund accounts for the City's allotment of Federal Equitable Sharing grant used for drug and gang enforcement activities. Weed and Seed Fund - This fund is used to account for the City's Weed and Seed grant, used for gang and mentoring programs. Revenue Sharing Fund — This fund accounts for State Revenue Sharing funds. The funds are used for the City's street lighting program and to provide minor street maintenance. Housing Rehabilitation Fund - This fund accounts for the City's CDBG grant program and provides low income housing and small business loans. RSVP Fund - This fund accounts for Cable Franchise Fund - This fund is used to account for the City's passthrough of local cable franchise fees to the local cable access program (WCAT). Streets Fund - This fund is used to account for the City's street operations. The fund's major source of revenue is highway gas tax received from the State of Oregon. Local Gas Tax Fund - This fund accounts for the City's one cent per gallon local gas tax. The money is used for capital improvement projects on local streets. Economic Development Fund — The primary purpose of this fund is to collect and distribute lease payments for leased property from the railroad. Police Construction Fund — Proceeds from the 2005 GO bonds were used to construct the City's police facility. The project is scheduled to be completed in fiscal year 2011 -12. -41- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 ORGANIZATIONAND OPERATION (Continued) Governmental Fund Types (Continued) Special Revenue Funds (Continued) General Fund Construction Fund - This fund is used to account for transfers from general services funds used for general services construction projects. Special Assessment Fund - This fund accounts for the repayment of local improvement district (LID) assessments. The money is used for construction of LID projects. Street /Storm Capital Improvement Fund - This fund accounts for transfers from the Storm and Street funds. The money is used for street and storm related capital projects. Parks SDC Fund - This fund is used to account for the collection and spending of park SDC's. Street SDC Fund - This fund accounts for the collection and spending of Street SDC's. Storm SDC Fund - This fund accounts for the collection and spending of Storm SDC's. PW Facility Construction Fund - This fund is used to account for lease payments on public works leased properties. Equipment Replacement Fund - This fund accounts for transfers from other funds set aside for future equipment purchases. Library Endowment Fund - This fund accounts for funds held to be used for library improvement projects. Museum Endowment Fund - This fund accounts for amounts held for museum activities. Storm Fund - This fund was used to account for the City's storm water program. Transfers from the Sewer fund are the primary source of revenue. Debt Service Funds GO Debt Fund - This find accounts for debt service on the City's 2005 GO bond. Property taxes are the major source of revenue. Bancroft Bond Fund — The remaining Bancroft Bond certificates are held in this fund. URA Debt Service Fund — This fund accounts for debt service on the URA loan. Property taxes are the primary source of revenue. Proprietary Fund Types Enterprise Funds The City has 7 enterprise funds. Three funds are related to water, and four are related to sewer. The specific funds and their purposes are as follows. -42- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 ORGANIZATIONAND OPERATION (Continued) Proprietary Fund Types (Continued) Enterprise Funds (Continued) Sewer Capital Improvement Fund - This fund accounts for capital improvements to the City's sewer system WWTP Construction Fund - This fund was used to account for the City's sewer treatment plant upgrade. The major source of revenue is debt proceeds. Well Water Construction Fund - This fund accounts for water system capital improvement projects and the retirement of associated debt. Water Fund - This fund accounts for the City's water system operation. Customer charges are the primary source of revenue. Sewer Fund - This fund accounts for the operation of the City's sewer system. Customer charges are the primary revenue source. Water SDC Fund - This fund accounts for the collection and spending of water SDC's. Sewer SDC Fund - This fund accounts for the collection and spending of water SDC's. Internal Service Funds The City has five internal service funds which provide services to other City departments. Internal charges are the primary revenue source for all funds. Expenditures are for the purposes as described below. Information Services Fund - This fund accounts for the maintenance and replacement of the City's network and technology services. -43- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 ORGANIZATIONAND OPERATION (Continued) Proprietary Fund Types (continued) Internal Service Funds (continued) Central Stores Fund - This fund accounts for interdepartmental copier leases and office supplies expenditures. Insurance Fund — This fund accounts for the City's insurance coverage. Technical & Environmental Services Fund - This fund accounts for administrative, engineering and fleet services provided to the City's enterprise operations. Building Maintenance Fund — This fund accounts for building maintenance and custodial services provided to City departments. Agency Fund The City has one agency fund. Agency funds are used to account for assets held by the City as an agent for other governmental units, other organizations, or individuals. The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the Statement of Net Assets as part of "cash and investments." Cash Deposits with financial institutions Cash on hand Investments Local Government Investment Pool Deposits Carrying Fair Value Value $ 706,100 $ 706,100 2,150 2,150 23,289,390 23,289,390 $ 23,997,640 $ 23,997,640 The City's deposits with various financial institutions had a bank value of $24,180,607 at June 30, 2010. All deposits not covered by FDIC insurance are covered by the Public Funds Collateralization Program (PFCP) of the State of Oregon. -44- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 CASHAND INVESTMENTS (Continued) Investments The State Treasurer of the State of Oregon maintains the Oregon Short-term Fund, of which the Local Government Investment Pool is part. Participation by local governments is voluntary. The State of Oregon investment policies are governed by statute and the Oregon Investment Council. In accordance with Oregon Statutes, the investment funds are invested as a prudent investor would do, exercising reasonable care, skill and caution. The Oregon Short-term Fund is the LGIP for local governments and was established by the State Treasurer. It was created to meet the financial and administrative responsibilities of federal arbitrage regulations. The investments are regulated by the Oregon Short Term Fund Board and approved by the Oregon Investment Council (ORS 294.805 to 294.895). At June 30, 2010, the fair value of the position in the Oregon State Treasurer's Short-term Investment Pool was approximately equal to the value of the pool shares. The investment in the Oregon Short-term Fund is not subject to classification. Separate financial statements for the Oregon Short-term Fund are available from the Oregon State Treasurer. Interest Rate Risk In accordance with its investment policy, the District manages its exposure to declines in fair value of its investments by limiting the weighted average maturity of its investments. Custodial Credit Risk - Deposits This is the risk that in the event of a bank failure, the City's deposits may not be returned. The Federal Depository Insurance Corporation (FDIC) provides insurance for the City's deposits with financial institutions up to $250,000 each for the aggregate of all non - interest bearing accounts and the aggregate of all interest bearing accounts at each institution. Deposits in excess of FDIC coverage with institutions participating in the Oregon Public Funds Collateralization Program are collateralized with securities held by the Federal Home Loan Bank of Seattle in the name of the institution. The PFCP is a shared liability structure for participating bank depositories, better protecting public funds though still not guaranteeing that all funds are 100% protected. Barring any exceptions, a bank depository is required to pledge collateral valued at least 10% of their quarter -end public fund deposits if they are well capitalized, 25% of their quarter -end public fund deposits if they are adequately capitalized, or 110% of their quarter -end public fund deposits if they are undercapitalized or assigned to pledge 110% by the Office of the State Treasurer. 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. As of June 30, 2010, $421,895 of the City's bank balances were exposed to custodial credit risk as they were collateralized with securities held by the pledging financial institution's agent but not in the City's name. Custodial Risk - Investments For an investment, this is the risk that, in the event of a failure of the counterparty, the City will not be able to recover the value of its investments or collateralized securities that are in the possession of an outside party. The City's investment policy limits the types of investments that may be held and does not allow securities to be held by the counterparty. -45- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 CASHAND INVESTMENTS (Continued) Custodial Risk —Investments (continued) The LGIP is administered by the Oregon State Treasury with the advice of other state agencies and is not registered with the U.S. Securities and Exchange Commission. The LGIP is an open -ended no -loan diversified portfolio offered to any agency, political subdivision, or public corporation of the state that by law is made the custodian of, or has control of any fund. The LGIP is commingled with the State's short-term funds. In seeking to best serve local governments of Oregon, the Oregon Legislature established the Oregon Short Term Fund Board, which has established diversification percentages and specifies the types and maturities of the investments. The purpose of the Board is to advise the Oregon State Treasury in the management and investment of the LGIP. These investments within the LGIP must be invested and managed as a prudent investor would, exercising reasonable care, skill and caution. Professional standards indicate that the investments in external investment pools are not subject to custodial risk because they are not evidenced by securities that exist in physical or book entry form. Nevertheless, management does not believe that there is any substantial custodial risk related to investments in the LGIP. RECEIVABLES Receivables at June 30, 2010 consisted of the following: See Schedule of Property Tax Transactions and Outstanding Balances. -46- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 CAPITAL ASSETS The summary of capital assets for the business -type activities for the year ended June 30, 2010 is as follows: Balances Balances July 1, June 30, 2009 Additions Retirements 2010 Nondepreciable assets Land (nondepreciable) $ 1,783,816 $ - $ - $ 1,783,816 Construction in progress 317,103 2,448,237 - 2,765,340 Subtotal, nondepreciable assets Depreciable assets Buildings Water and sewer systems Equipment Subtotal, depreciable assets Accumulated depreciation Buildings and improvements Water and sewer systems Equipment Total accumulated depreciation Total depreciable assets, net Net capital assets 2,100,919 2,448,237 62,273,893 - 23,107,823 - 1,769,907 48,396 87,151,623 48,396 (19,414,557) (1,529,848) (6,742,153) (508,127) (1,061,494) (89,156) (27,218,204) (2,127,131) 59,933,419 (2,078,735) 4,549,156 - 62,273,893 - 23,107,823 - 1,818,303 - 87,200,019 - (20,944,405) - (7,250,280) - (1,150,650) (29,345,335) 57,854,684 $ 62,034,338 $ 369,502 $ - $ 62,403,840 -47- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 CAPITAL ASSETS (Continued) The changes in the capital assets for governmental activities for the year ended June 30, 2010 are as follows: Balances Balances July 1, June 30, 2009 Additions Retirements 2010 Nondepreciable assets Land (nondepreciable) Construction in progress Subtotal, nondepreciable assets Depreciable assets Buildings Equipment Infrastructure Subtotal, depreciable assets Accumulated depreciation Buildings Equipment Infrastructure Total accumulated depreciation Total depreciable assets, net Net capital assets $ 21,636,467 $ 930,914 $ - $ 22,567,381 10,937,334 4,712,706 (8,226,465) 7,423,575 Culture and recereation 123,418 32,573,801 5,643,620 (8,226,465) 29,990,956 8,071,907 530,132 - 8,602,039 5,414,457 262,533 - 5,676,990 27,838,526 7,041,342 - 34,879,868 41,324,890 7,834,007 - 49,158,897 (3,106,268) (171,100) - (3,277,368) (3,589,640) (253,930) - (3,843,570) (14,970,775) (677,156) - (15,647,931) (21,666,683) (1,102,186) - (22,768,869) 19,658,207 6,731,821 - 26,390,028 $ 52,232,008 $ 12,375,441 $ (8,226,465) $ 56,380,984 Depreciation expense of $1,102,186 was allocated as follows General government $ 48,642 Public safety 47,013 Highways and streets 847,655 Culture and recereation 123,418 Internal service funds 35.458 .p 1,1 v6 100 -48- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 LONG -TERM DEBT Long -term debt transactions for the year were as follows: Outstanding July 1, 2009 Issued Governmental Activities: Series 2005 $ 6,190,000 $ 1999 Oregon EDD Loan 252,302 2005 URA Loan 1.245.363 7,687,665 - (461,804) 7,225,861 484,627 Capital Leases 52,175 222,241 (126,255) 148,161 148,161 Accrued compensated absences 434,414 147,571 - 581,985 - $ 8,174,254 $ 369,812 $ (588,059) $ 7,956,007 $ 632,788 -49- Outstanding Due Redeemed .Tune 30, Within During Year 2010 One Year - $ (260,000) $ 5,930,000 $ 275,000 - (23,834) n nn nnm 228,468 i non In, 24,027 i oc i­ 7,687,665 - (461,804) 7,225,861 484,627 Capital Leases 52,175 222,241 (126,255) 148,161 148,161 Accrued compensated absences 434,414 147,571 - 581,985 - $ 8,174,254 $ 369,812 $ (588,059) $ 7,956,007 $ 632,788 -49- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 LONG- TERMDEBT (Continued) $ 35,763,214 $ 811,092 $ (2,070,336) $ 34,503,970 $ 2,154,818 Future maturities of long -term debt are as follows: -50- Outstanding Matured/ Outstanding Due July 1, Redeemed June 30, Within 2007 Issued During Year 2008 One Year Business -type Activities: Series 2003 $ 7,278,522 $ - $ (246,810) $ 7,031,712 $ 253,064 1992 Oregon EDD 77,331 - (24,214) 53,117 25,745 2005 Oregon EDD 3,440,156 - (154,995) 3,285,161 161,521 2005 SDWR 3,440,166 - (154,996) 3,285,170 161,521 2009 ARRA 324,339 - 324,339 - 1991 Oregon EDD 85,648 - (41,476) 44,172 44,172 1999 Oregon EDD 296,173 - (24,687) 271,486 29,901 1999 Oregon EDD 2,324,654 - (206,232) 2,118,422 214,417 2001 Oregon EDD 18,188,499 - (1,216,926) 16,971,573 1,264,477 2007 Oregon DEQ 370,804 243,483 - 614,287 - 2007 Oregon DEQ 191,241 112,100 - 303,341 - 35,693,194 679,922 (2,070,336) 34,302,780 2,154,818 Accrued compensated absences 70,020 131,170 - 201,190 - $ 35,763,214 $ 811,092 $ (2,070,336) $ 34,503,970 $ 2,154,818 Future maturities of long -term debt are as follows: -50- Governmental Activities Fiscal Year Ending June 30, Principal Interest Total 2011 $ 484,587 $ 287,682 $ 772,269 2012 507,785 268,897 776,682 2013 526,295 249,237 775,532 2014 560,172 228,861 789,033 2015 584,429 206,832 791,261 2016 -20 2,087,593 766,504 2,854,097 2021 -25 2,475,000 322,675 2,797,675 $ 7,225,861 $ 2,330,688 Business -type Activities Fiscal Year Ending June 30, 2011 2012 2013 2014 2015 2016 -20 2021 -25 2026 -29 Principal Interest $ 3,396,785 2,190,440 2,249,248 2,338,492 2,430,966 13,151,698 6,550,671 1,994,480 $ 1,326,610 1,240,844 1,154,115 1,065,501 972,874 3,338,504 1,150,232 235,776 $ 34,302,780 $ 10,484,456 $ 44,787,236 $ 9,556,549 Total $ 4,723,395 3,431,284 3,403,363 3,403,993 3,403,840 16,490,202 7,700,903 2,230,256 DEFINED BENEFIT PENSIONPLAN — THE RETIRMENT PLAN FOR EMPLOYEES OF CITY OF WOODBURN, OREGON Plan Description The City sponsors a single - employer defined benefit pension plan that covers nonexecutive employees who have completed six months of employment with the City and executive employees, except the city administrator, who elect coverage under this plan. It provides retirement and disability benefits, cost of living adjustments and death benefits to members and beneficiaries. The City Council has the authority to amend the benefit provisions of the plan. On November 5, 1998, the City decided to integrate its retirement plan into the Oregon Public Employees Retirement System (PERS) pursuant to ORS 238.680. The City ceased contributions to its retirement plan in December 1998, except for one employee who continued under the plan until August 2000. In December 1998, the City transferred $6,738,120 to PERS under the integration agreement with PERS. The remaining assets of the retirement plan are to provide retirement benefits to employees who have already retired or elected to remain in the plan. -51- Membership of the plan consisted of eight inactive members at July 1, 2007, the date of the latest actuarial valuation available as of the date of this report. Funding Status and Progress The pension benefit obligation (PBO), which is the actuarial present value of credited projected benefits, is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step -rate benefits estimated to be payable in the future as a result of employee service to date. The measure is intended to help assess the funding status of the plan, to assess progress made in accumulating sufficient assets to pay benefits when due, and to make comparisons among employers. The latest actuarial valuation was performed as of July 1, 2007. Significant actuarial assumptions used to compute the PBO were as follows: Investment earnings 5.5% (net of all plan expenses) Salary increases as per contract Cost -of- living increases 3.0% Schedule of Employer Contributions Error! Not a valid link. EMPLOYEE RETIREMENT SYSTEM City employees participate in the Oregon Public Employee's Retirement System (PERS). Contributions are made for employees after six months of employment unless they are members of PERS and eligible for contributions when they begin employment. PERS is a cost - sharing multiple - employer public employee retirement system that acts as a common investment and administrative agent for government units in the State of Oregon. Benefits generally vest after five years of continuous service in a PERS covered position. Retirement is allowed at age 58 with unreduced benefits, but retirement is generally available after age 55 with reduced benefits. Compulsory retirement age is 70. Contributions made by, or on behalf of, the employee are payable in a lump sum or monthly amounts using several payment options. Contributions made on behalf of the employee to the employer account can only be taken in monthly payments. PERS also provides death and disability benefits. These benefit provisions and other requirements are established by state statutes, Chapter 238, Oregon Revised Statutes. PERS issues a publicly available comprehensive annual financial report that includes financial statements and required supplemental information. The stand -alone report may be obtained by writing to Oregon Public Employees Retirement System, P.O. Box 23700, Tigard, Oregon 97281 -3700. The City's contribution rate, based on the most current actuarial valuation using the entry age actuarial cost method, was 2239% of covered payroll for General Service Tier 1 and 2 employees. For newer employees covered under the OPSRP (Oregon Public Service Retirement Plan) the rate was 22.59% and 25.86% of covered payroll for General Service and Police employees, respectively. This rate includes the required employee contribution of 6% of covered compensation. As a result of the City having a side account from the sale of PERS bonds, PERS allowed the City a 7.64% reduction of the rates resulting in net rates paid to PERS of 14.75 %, 14.95% and 18.22% respectively for the three groups. The contribution requirements of the City are established or may be amended by the PERS Retirement Board while the employees' rate is set by the state statute ORS 238.200. The City's payroll for employees covered by PERS for the year ended June 30, 2010 was $9,068,326, the City's total payroll was $9,793,304. -52- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 EMPLOYEE RETIREMENT SYSTEM (Continued) For fiscal 2009 -10, the City's annual pension cost of $955,092 for PERS was equal to the City's required and actual contributions. In addition,Error! Not a valid link was transferred to the PERS Rate Differential Fund to pay for debt service on Local Government Pension Bonds explained below. The required contributions and liabilities were determined as part of the December 31, 2005 actuarial valuation using the entry age actuarial cost method. Because all PERS employers are required by law to submit the contributions adopted by the Retirement Board, and the employer contributions are calculated in conformance with the standards of Statement No. 27, there is no net pension obligation. The contributions actually made are the equivalent to the annual pension cost. Significant actuarial assumptions used in the valuation include (1) a rate of return on the investment of present and future assets of 8.5% per year; (b) projected annual salary increases for inflation and merit of 4.25% per year; (c) projected automatic post- retirement benefit increases of 2.0% per year; and (d) demographic assumptions that have been chosen to reflect the best estimate of emerging experience of the members of PERS. The unfunded actuarial liability is amortized as a level percentage of covered payroll over a thirty year period on an open basis. Because the underlying calculations in the actuarial valuation are long -term in nature, and one of the goals of the actuarial valuation process is to ensure funding stability, it can be advantageous to smooth out short-term fluctuations in the market value of the system's assets. The PERS Board approved implementation of an asset smoothing method effective for the investment commencing in 2000. Annual investment gains and losses will be recognized over a period of four years, and the Actuarial Value of Assets will be limited to the corridor between 90% and 100% of Fair Market Value. DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section (IRC) 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. In accordance with IRC 457, the City has transferred all of the Plan assets into trust accounts. The assets and income of the transferred plans are held for the exclusive benefit of the participants and their beneficiaries, and accordingly are not included in the City's financial statements. OTHER POST EMPLOYMENT BENEFITS Plan Description The City implemented GASB 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pension prospectively beginning in fiscal year June 30, 2010. GASB 45 is applicable to the City due only to the implicit rate subsidy. As required by ORS 243.303, the City must offer retirees the same group health and dental insurance as provided to current employees from the date of retirement to the age when retirees and spouses typically become eligible for Medicare. The difference between retiree claims costs, which because of the effect of age, is generally higher in comparison to all plan members, and the amount of retiree healthcare premiums represents the City's implicit employer contribution. -53- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 OTHER POST EMPLOYMENT BENEFITS (Continued) Plan Description (Continued) The City has not established an irrevocable trust (or equivalent arrangement) to account for the plan. The plan does not issue a separate report. Funding Policy The City funds the plan only to the extent of current year insurance premium requirements on a pay -as- you -go basis. At June 30, 2010, the City had 165 active employees and 53 retirees participating in the program with all insurance premium costs paid in full by the individual for management personally hired after November 17, 2005 and AFSCME personnel hired after July 1, 2005. Annual OPEB Cost and Net OPEB Obligation The City's annual other post - employment benefit cost (expense) is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance within the parameters of GASB 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each _year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The City amortizes unfunded actuarial liabilities over fifteen years. The following table shows the components of the City's annual OPEB cost for the fiscal year ending June 30, 2010, the amount actually contributed to the plans, and changes in the City's net OPEB obligation: -54- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 OTHER POST EMPLOYMENT BENEFITS (Continued) The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plans, and the net OPEB obligation for 2010 were as follows: Funded Status and Funding Progress As of August 1, 2008, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $6,603,716, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $6,603,716. The covered payroll (annual payroll of active employees covered by the plan) was $8,997,944 and the ratio of the UAAL to the covered payroll was 73.4 %. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information immediately following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time, relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan members to the evaluation date. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. The August 1, 2008 actuarial valuations for the OPEB plan is based on the projected unit credit actuarial cost method. The actuarial assumptions include an investment return of 4.5 %, a healthcare cost inflation trend rate of 8.0% for the 1st year, August 1, 2008 to August 1, 2009, 7.0% in the 2nd year, 6.5% in the third year, 6.0% for the 4th through 14 year, 5.5% for the 15 through 29 year, and 5.0% thereafter. Annual payroll increases are compounded at 3.75% annually. The unfunded actuarially accrued liability and the gain or loss is amortized as a level percentage of projected payroll over 15 years. Accrued Liability Value of (AAL) - Unfunded Valuation Assets Entry Age AAL (UAAL) Date (a) (b) (b -a) 08/01/2008 $ - $ 6,603,716 $ 6,603,716 Funded Covered Ratio Payroll (alb) (c) 0% $ 8,997,944 UAAL as a Percentage of Covered Payroll ((b -a) /c) 73.4% -55- Percentage of Fiscal Annual Annual OPEB Net OPEB Year End OPEB Cost Cost Contribution Obligation 06/30/09 $ 770,607 42.8% $ 427,873 06/30/10 923,839 41.0% 976,071 Funded Status and Funding Progress As of August 1, 2008, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $6,603,716, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $6,603,716. The covered payroll (annual payroll of active employees covered by the plan) was $8,997,944 and the ratio of the UAAL to the covered payroll was 73.4 %. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information immediately following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time, relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan members to the evaluation date. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. The August 1, 2008 actuarial valuations for the OPEB plan is based on the projected unit credit actuarial cost method. The actuarial assumptions include an investment return of 4.5 %, a healthcare cost inflation trend rate of 8.0% for the 1st year, August 1, 2008 to August 1, 2009, 7.0% in the 2nd year, 6.5% in the third year, 6.0% for the 4th through 14 year, 5.5% for the 15 through 29 year, and 5.0% thereafter. Annual payroll increases are compounded at 3.75% annually. The unfunded actuarially accrued liability and the gain or loss is amortized as a level percentage of projected payroll over 15 years. Accrued Liability Value of (AAL) - Unfunded Valuation Assets Entry Age AAL (UAAL) Date (a) (b) (b -a) 08/01/2008 $ - $ 6,603,716 $ 6,603,716 Funded Covered Ratio Payroll (alb) (c) 0% $ 8,997,944 UAAL as a Percentage of Covered Payroll ((b -a) /c) 73.4% -55- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 TRANSFERS General Revenue Sharing RSVP Streets Equipment Replacement Water Sewer Storm Tech & Environmental Services Transfers In Transfers Out 28,259 165,000 160,000 85,000 235,000 700,000 $ 1,373,259 123,259 20,000 289,000 346,000 590,000 5,000 $ 1,373,259 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. -56- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 EXPENDITURES IN EXCESS OFAPPROPRIATIONS The following funds had expenditures in excess of appropriations: CONTINGENCIES The City purchases commercial insurance to cover all commonly insurable risks, which includes property damage, liability and employee bonds. Most policies carry a small deductible amount. No insurance claims settled in each of the prior three years have exceeded policy coverage. The City is a defendant in various litigation proceedings. Management believes any losses arising from these actions will not materially affect the City's financial position. -57- CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2010 GASB PRONOUNCEMENTS ISSUED, NOT YET INEFFECT The Governmental Accounting Standards Board (GASB) has issued several pronouncements that have future effective dates that may impact future financial presentations. Management has not currently determined what, if any, impact implementation of the following statements may have on future financial statements. GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund Type Definitions ", issued February 2009 will be effective for the City Beginning with its fiscal year ending June 30, 2010. The Statement establishes new classifications for fund equity and new definitions for governmental fund types. SUBSEQUENT EVENTS The City adopted the provisions of Statement of Financial Accounting Standards ( "SFAS ") No. 165, "Subsequent Events" (ASC 855). ASC 855 establishes new accounting and disclosure requirements for subsequent events. Management has evaluated subsequent events through ** 2011, the date on which the financial statements were available to be issued. Management is not aware of any subsequent events that require recognition or disclosure in the financial statements. -58- REQUIRED SUPPLEMENTARY INFORMATION -59- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - B UDGET AND ACT UAL - GENERAL FUND YEAR ENDED JUNE 30, 2010 Budgeted Amounts Original Final Actual Variance REVENUES Taxes and assessments $ 7,356,000 $ 7,356,000 $ 7,342,620 $ (13,380) Licenses and permits 1,155,000 1,155,000 1,176,653 21,653 Charges for services 550,215 555,215 571,024 15,809 Intergovernmental 455,500 455,500 434,027 (21,473) Fines and forfeitures 472,000 472,000 665,977 193,977 Miscellaneous 94,500 100,450 173,215 72,765 Total Revenues 10,083,215 10,094,165 10,363,516 269,351 EXPENDITURES Council and mayor 44,068 44,068 40,892 3,176 City administrator 344,981 344,981 273,560 71,421 City recorder 96,317 136,076 107,675 28,401 City attorney 174,691 174,691 160,801 13,890 Finance 290,540 302,900 330,107 (27,207) Municipal court 221,706 221,706 192,646 29,060 Nondepartmental 119,425 119,425 143,806 (24,381) Police 5,537,395 5,520,395 5,295,457 224,938 Library 1,083,514 1,083,514 1,001,758 81,756 Leisure services 434,161 467,111 347,515 119,596 Swimming pool 646,930 646,930 628,451 18,479 Community service administration 362,607 362,607 324,515 38,092 Parks maintenance 470,959 470,959 387,640 83,319 Planning 567,975 567,975 546,720 21,255 Contingency 1,057,053 999,934 - 999,934 Total Expenditures 11,452,322 11,463,272 9,781,543 1,681,729 REVENUES OVER (UNDER) EXPENDITURES (1,369,107) (1,369,107) 581,973 1,951,080 OTHER FINANCING SOURCES (USES) Transfers out (123,259) (123,259) (123,259) - NET CHANGE IN FUND BALANCE (1,492,366) (1,492,366) 458,714 1,951,080 FUND BALANCE, Beginning of year 1,954,245 1,954,245 2,159,699 205,454 FUND BALANCE, End of year $ 461,879 $ 461,879 $ 2,618,413 $ 2,156,534 -60- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL —HOUSING REHABILITATION FUND YEAR ENDED JUNE 30, 2010 -61- Budgeted Amounts Original Final Actual Variance REVENUES Miscellaneous $ 32,398 $ 32,398 $ 29,768 $ (2,630) EXPENDITURES Materials and services 702,232 702,232 333,017 369,215 Contingency 28,768 28,768 - 28,768 Total Expenditures 731,000 731,000 333,017 397,983 REVENUES OVER (UNDER) EXPENDITURES (698,602) (698,602) (303,249) 395,353 FUND BALANCE, Beginning of year 698,602 698,602 676,701 (21,901) FUND BALANCE, End of year $ - $ - $ 373,452 $ 373,452 -61- (page intentionally left blank) -62- OTHER SUPPLEMENTARY INFORMATION -63- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL - GENERAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2010 REVENUES Intergovernmental Miscellaneous Total Revenues EXPENDITURES Capital outlay Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE IN FUND BALANCE FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 165,290 $ 690,290 $ 466,520 $ (223,770) 1,000 1,000 75,051 74,051 166,290 691,290 541,571 (149,719) 303,290 828,290 562,240 266,050 31,771 31,771 - 31,771 335,061 860,061 562,240 297,821 (168,771) (168,771) (20,669) 148,102 - (20,000) - 20,000 (168,771) (188,771) (20,669) 168,102 244,771 264,771 104,378 (160,393) $ 76,000 $ 76,000 $ 83,709 $ 7,709 -64- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL — STREET /STORM CAPITAL IMPROVEMENT FUND YEAR ENDED JUNE 30, 2010 REVENUES Licenses and permits Charges for services Intergovernmental Miscellaneous Total Revenues EXPENDITURES Materials and services Capital outlay Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 315,000 $ 315,000 $ 364,253 $ 49,253 750,000 750,000 393,923 (356,077) 1,887,000 1,887,000 797,103 (1,089,897) 10,000 10,000 43,013 33,013 2,962,000 2,962,000 1,598,292 (1,363,708) 421,900 421,900 250,866 171,034 2,988,600 2,988,600 1,605,260 1,383,340 65,816 65,816 - 65,816 (514,316) (514,316) (257,834) 256,482 514,316 664,430 150,114 -65- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL —STREET SDC FUND YEAR ENDED JUNE 30, 2010 REVENUES Licenses and permits Miscellaneous Total Revenues EXPENDITURES Materials and services Capital outlay Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 300,000 $ 300,000 $ 206,610 $ (93,390) 100,000 100,000 34,982 (65,018) 400,000 400,000 241,592 (158,408) 795,372 795,372 255,972 539,400 1,755,628 1,755,628 606,672 1,148,956 (4,305,365) (4,305,365) (621,052) 3,684,313 $ 3,300,000 $ 3,300,000 $ 6,928,604 $ 3,628,604 -66- (page intentionally left blank) -67- CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET- NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2010 Special Revenue General Search and Reserve Transit Building Seizure ASSETS Cash and investments $ 73,744 $ 83,952 $ 104,121 $ - Accounts receivable - - - - Property taxes receivable - 14,025 - - Assessment liens receivable - - - - Total Assets $ 73,744 $ 97,977 $ 104,121 $ - LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ - $ 19,046 $ 17,411 $ - Due to other funds - 192 46 18,623 Deferred revenue - 12,590 - - Total Liabilities - 31,828 17,457 18,623 Fund Balances Unreserved, reported in: Special revenue funds - - 86,664 (18,623) Capital projects funds 73,744 - - - Debt services fund - 66,149 - - Total Fund Balances 73,744 66,149 86,664 (18,623) Total Liabilities and Fund Balances $ 73,744 $ 97,977 $ 104,121 $ - -68- $ 20 $ 14,576 $ 172 $ 68.589 - 27 Ob,0U7 1'+,.)/0 177 $ 44,980 $ 540 $ 291 154 - 37 45,134 540 328 (68,541) Special Revenue 10,914 5,934 206,718 137,814 83,083 Local Weed and Revenue Cable Gas Seed Sharing RSVP Franchise Streets Tax Storm $ 68 $ 192,963 $ 11,113 $ 5,934 $ 98,578 $ 129,151 $ 83,411 - 50,618 - - 153,274 9,203 - $ 68 $ 243,581 $ 11,113 $ 5,934 $ 251,852 $ 138,354 $ 83,411 $ 20 $ 14,576 $ 172 $ 68.589 - 27 Ob,0U7 1'+,.)/0 177 $ 44,980 $ 540 $ 291 154 - 37 45,134 540 328 (68,541) 229,005 10,914 5,934 206,718 137,814 83,083 229,005 137,814 (68,541) 10,914 5,934 206,718 83,083 $ 68 $ 243,581 $ 11,113 $ 5,934 $ 251,852 $ 138,354 $ 83,411 -69- CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) JUNE 30, 2010 ASSETS Cash and investments Accounts receivable Property taxes receivable Assessment liens receivable Total Assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable Due to other funds Deferred revenue Total Liabilities Fund Balances Unreserved, reported in: Special revenue funds Capital projects funds Debt services fund Total Fund Balances Total Liabilities and Fund Balances Special Revenue Librarr Museum Economic Police Endowment Endowment Development Construction $ 25,828 $ 2,754 $ 106,976 $ 442,655 $ 25,828 $ 2,754 $ 106,976 $ 442,655 $ - $ - $ - $ 172 - - - 172 25,828 2,754 106,976 - - - - 442,483 25,828 2,754 $ 25,828 $ 2,754 $ 106,976 442,483 106,976 $ 442,655 -70- 209,571 - - 209,571 - - 983,854 646,870 505,731 983,854 646,870 505,731 $ 12,501 12,501 16,324 418,174 16,324 418,174 $ 1,193,425 $ 646,870 $ 505,731 $ 16,324 $ 430,675 -71- Capital Projects PW Special Parks Storm Facility Equipment Assessment SDC SDC Construction Replacement $ 983,854 $ 646,870 $ 505,731 $ 16,324 $ 430,675 209,571 - - - - $ 1,193,425 $ 646,870 $ 505,731 $ 16,324 $ 430,675 209,571 - - 209,571 - - 983,854 646,870 505,731 983,854 646,870 505,731 $ 12,501 12,501 16,324 418,174 16,324 418,174 $ 1,193,425 $ 646,870 $ 505,731 $ 16,324 $ 430,675 -71- CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) JUNE 30, 2010 -72- Debt Service GO Bancroft Urban Debt Bond Renewal Debt Totals ASSETS Cash and investments $ 88,083 $ 7,519 $ 1,033,422 $ 5,073,726 Accounts receivable - - - 213,095 Property taxes receivable 44,614 - 50,912 109,551 Assessment liens receivable - - - 209,571 Total Assets $ 132,697 $ 7,519 $ 1,084,334 $ 5,605,943 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ - $ 933 $ - $ 110,642 Due to other funds - - - 87,668 Deferred revenue 40,050 - 45,862 308,073 Total Liabilities 40,050 933 45,862 506,383 Fund Balances Unreserved, reported in: Special revenue funds - - - 808,526 Capital projects funds - - 3,087,180 Debt services fund 92,647 6,586 1,038,472 1,203,854 Total Fund Balances 92,647 6,586 1,038,472 5,099,560 Total Liabilities and Fund Balances $ 132,697 $ 7,519 $ 1,084,334 $ 5,605,943 -72- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2010 -73- General Search and Reserve Transit Building Seizure REVENUES Taxes and assessments $ - $ 155,209 $ - $ - Licenses and permits - - 135,332 - Charges for services - 23,893 - - Intergovernmental - 432,079 - 12,382 Miscellaneous 358 15,894 22,916 1,515 Total Revenues 358 627,075 158,248 13,897 EXPENDITURES Current operating: General government - - 215,065 - Public safety - - - 35,825 Highways and streets - 405,474 - - Culture and recreation - - - - Capital outlay - 216,412 - - Debt service Principal - - - - Interest - - - - Total Expenditures - 621,886 215,065 35,825 REVENUES OVER (UNDER) EXPENDITURES 358 5,189 (56,817) (21,928) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - NET CHANGE IN FUND BALANCES 358 5,189 (56,817) (21,928) FUND BALANCES, Beginning ofyear 73,386 60,960 143,481 3,305 FUND BALANCES, End of year $ 73,744 $ 66,149 $ 86,664 $ (18,623) -73- Special Revenue Local Weed and Revenue Cable Gas Seed Sharing RSVP Franchise Streets Tax Storm $ - $ - $ - $ - $ - $ 117,884 $ - 22,149 - - - - 1,167 - - 1 52 QA7 ')')A drQd 50 711 _ Qira AQA 8,867 - 21,192 - 116,327 - 82,754 - 1,041,682 - 379,214 - 2,500 - 47,043 - - - 37,047 (212,874) (23,008) IQ 1 )SQ (20,000) 28,259 - 152,072 9,255 - (1,513) (62,818) 108,984 (151,917) 1 r5 Ann X25 Ann (124,000) - 235,000 (1,513) (186,818) 108,984 83,083 -74- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2010 Special Revenue Library Museum Economic Police Endowment Endowment Development Construction REVENUES Taxes and assessments $ - $ - $ - $ - Licenses and permits - - - - Charges for services - - - - Intergovernmental - - - - Miscellaneous 126 14 610 2,374 Total Revenues 126 14 610 2,374 EXPENDITURES Current operating: General government - - - - Public safety - - - - Highways and streets - - - - Culture and recreation - - - - Capital outlay - - - 71,793 Debt service Principal - - 36,519 - Interest - - - - Total Expenditures - - 36,519 71,793 REVENUES OVER (UNDER) EXPENDITURES 126 14 (35,909) (69,419) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - NET CHANGE IN FUND BALANCES 126 14 (35,909) (69,419) FUND BALANCES, Beginning ofyear 25,702 2,740 142,885 511,902 FUND BALANCES, End of year $ 25,828 $ 2,754 $ 106,976 $ 442,483 -75- Capital Projects PW Special Parks Storm Facility Equipment Assessment SDC SDC Construction Replacement $ 158,664 $ - $ - $ - $ - - 18,825 3,352 - - G / /,JYV GY, /J/ V,JVG OJ 1,7YV 2,663 - - - - 62,818 549,897 206,151 3,914 96,012 211,865 (525,140) (199,849) (3,829) (94,066) - - - - 160.000 - - - - 160,000 211,865 (525,140) (199,849) (3,829) 65,934 .p 70J,OJY .p VYV,O /V .p JVJ, /J1 .p 1V,JGY Y10,1 /Y -76- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2010 -77- Debt Service GO Bancroft Urban Debt Bond Renewal Debt Totals REVENUES Taxes and assessments $ 491,110 $ - $ 569,592 $ 1,492,459 Licenses and permits - - - 179,658 Charges for services - - - 25,060 Intergovernmental - - - 1,843,213 Miscellaneous 1,100 36 5,362 194,755 Total Revenues 492,210 36 574,954 3,735,145 EXPENDITURES Current operating: General government 6,101 - - 251,225 Public safety - - - 35,825 Highways and streets - - - 557,546 Culture and recreation - - - 1,252,681 Capital outlay - - - 1,588,711 Debt service Principal 260,000 - 601,798 945,360 Interest 243,156 - 49,762 292,918 Total Expenditures 509,257 - 651,560 4,924,266 REVENUES OVER (UNDER) EXPENDITURES (17,047) 36 (76,606) (1,189,121) OTHER FINANCING SOURCES (USES) Transfers in - - - 588,259 Transfers out - - - (309,000) Total Other Financing Sources (Uses) - - - 279,259 NET CHANGE IN FUND BALANCES (17,047) 36 (76,606) (909,862) FUND BALANCES, Beginning ofyear 109,694 6,550 1,115,078 6,009,422 FUND BALANCES, End ofyear $ 92,647 $ 6,586 $ 1,038,472 $ 5,099,560 -77- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL —GENERAL RESERVE FUND YEAR ENDED JUNE 30, 2010 REVENUES Miscellaneous EXPENDITURES REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final $ 1,300 $ 1,300 $ Actual Variance 358 $ (942) 1,300 1,300 358 73,911 73,911 73,386 (942) $ 75,211 $ 75,211 73,744 $ (1,467) -78- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - B UDGET AND ACT UAL - TRANSIT FUND YEAR ENDED JUNE 30, 2010 -79- Baal; eted Amounts Original Final Actual Variance REVENUES Taxes and assessments $ 154,000 $ 154,000 $ 155,209 $ 1,209 Charges for services 34,000 34,000 23,893 (10,107) Intergovernmental 144,000 414,341 432,079 17,738 Miscellaneous 14,200 14,200 15,894 1,694 Total Revenues 346,200 616,541 627,075 10,534 EXPENDITURES Personal services 324,268 331,268 280,404 50,864 Materials and services 91,760 151,060 125,070 25,990 Capital outlay - 220,341 216,412 3,929 Contingency 37,161 20,861 - 20,861 Total Expenditures 453,189 723,530 621,886 101,644 REVENUES OVER (UNDER) EXPENDITURES (106,989) (106,989) 5,189 112,178 FUND BALANCE, Beginning of year 121,589 121,589 60,960 (60,629) FUND BALANCE, End of year $ 14,600 $ 14,600 $ 66,149 $ 51,549 -79- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL - BUILDING FUND YEAR ENDED JUNE 30, 2010 REVENUES Licenses and permits Miscellaneous Total Revenues EXPENDITURES Personal services Materials and services Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from issuance of debt NET CHANGE IN FUND BALANCE FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 103,242 $ 103,242 $ 135,332 $ 32,090 110,674 110,674 158,248 47,574 194,578 194,578 179,140 15,438 43,486 43,486 35,925 7,561 145,053 145,053 - 145,053 383,117 383,117 215,065 168,052 (272,443) (272,443) (56,817) 215,626 160,000 160,000 - (160,000) (112,443) (112,443) (56,817) 55,626 159,073 159,073 143,481 (15,592) $ 46,630 $ 46,630 $ 86,664 $ 40,034 -80- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - B UDGET AND ACT UAL — SEARCH AND SEIZURE FUND YEAR ENDED JUNE 30, 2010 REVENUES Intergovernmental Miscellaneous Total Revenues EXPENDITURES Materials and services REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning (?f year FUND BALANCE, End of year Bull; eted Amounts Original Final Actual Variance $ - $ 70,000 $ 12,382 $ (57,618) 200 200 1,515 1,315 200 70,200 13,897 (56,303) 3,600 73,600 35,825 37,775 (3,400) (3,400) (21,928) (18,528) 3,400 3,400 3,305 (95) $ - $ - $ (18,623) $ (18,623) -81- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL — WEED AND SEED FUND YEAR ENDED JUNE 30, 2010 -82- Budgeted Amounts Original Final Actual Variance REVENUES Intergovernmental $ 174,529 $ 174,529 $ 153,847 $ (20,682) Miscellaneous - - (473) (473) Total Revenues 174,529 174,529 153,374 (21,155) EXPENDITURES Personal services 132,761 132,761 95,582 37,179 Materials and services 41,768 41,768 20,745 21,023 Total Expenditures 174,529 174,529 116,327 58,202 REVENUES OVER (UNDER) EXPENDITURES - - 37,047 37,047 FUND BALANCE, Beginning of year - - (105,588) (105,588) FUND BALANCE, End of year $ - $ - $ (68,541) $ (68.541) -82- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL -REVENUE SHARING FUND YEAR ENDED JUNE 30, 2010 REVENUES Intergovernmental Miscellaneous Total Revenues EXPENDITURES Materials and services Capital outlay Debt service Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE IN FUND BALANCE FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 225,000 $ 225,000 $ 220,694 $ (4,306) 5,000 5,000 1,556 (3,444) 230,000 230,000 222,250 (7,750) 16,950 16,950 8,867 8,083 411,050 411,050 379,214 31,836 47,044 47,044 47,043 1 38,072 38,072 - 38,072 513,116 513,116 435,124 77,992 (283,116) (283,116) (212,874) 70,242 (20,000) (20,000) (20,000) - (303,116) (303,116) (232,874) 70,242 303,116 303,116 461,879 158,763 $ - $ - $ 229,005 $ 229,005 -83- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL - RSVP FUND YEAR ENDED JUNE 30, 2010 REVENUES Intergovernmental Miscellaneous Total Revenues EXPENDITURES Personal services Materials and services Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in NET CHANGE IN FUND BALANCE FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 56,054 $ 56,054 $ 59,721 $ 3,667 260 260 25 (235) 56,314 56,314 59,746 3,432 77,108 77,108 73,215 3 893 10,686 10,686 9,539 1,147 2,026 2,026 - 2,026 89,820 89,820 82,754 7,066 (33,506) (33,506) (23,008) 10,498 28,259 28,259 28,259 - (5,247) (5,247) 5,251 10,498 9,527 9,527 5,663 (3,864) $ 4,280 $ 4,280 $ 10,914 $ 6,634 -84- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL —CABLE FRANCHISE FUND YEAR ENDED JUNE 30, 2010 REVENUES Licenses and permits Miscellaneous Total Revenues EXPENDITURES Materials and services Capital outlay Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of .year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 20,000 $ 20,000 $ 22,149 $ 2,149 200 200 30 (170) 20,200 20,200 22,179 1,979 21,000 21,000 21,192 (192) 2,500 2,500 2,500 - 8,200 8,200 - 8,200 (11,500) (11,500) (1,513) 9,987 11,500 11,500 7,447 (4,053) $ - $ - $ 5,934 $ 5,934 -85- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - B UDGET AND ACT UAL - STREETS FUND YEAR ENDED JUNE 30, 2010 Budgeted Amounts Original Final Actual Variance REVENUES Charges for services $ 500 $ 500 $ 1,167 $ 667 Intergovernmental 980,000 980,000 964,490 (15,510) Miscellaneous 20,000 20,000 13,207 (6,793) Total Revenues 1,000,500 1,000,500 978,864 (21,636) EXPENDITURES Personal services 457,824 464,824 439,922 24,902 Materials and services 710,490 720,490 601,760 118,730 Contingency 76,714 59,714 - 59,714 Total Expenditures 1,245,028 1,245,028 1,041,682 203,346 REVENUES OVER (UNDER) EXPENDITURES (244,528) (244,528) (62,818) 181,710 OTHER FINANCING SOURCES (USES) Transfers in 165,000 165,000 165,000 - Transfers out (289,000) (289,000) (289,000) - Total Other Financing Sources (Uses) (124,000) (124,000) (124,000) - NET CHANGE IN FUND BALANCE (368,528) (368,528) (186,818) 181,710 FUND BALANCE, Beginning of year 406,704 406,704 393,536 (13,168) FUND BALANCE, End of year $ 38,176 $ 38,176 $ 206,718 $ 168,542 -86- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL —LOCAL GAS TAX FUND YEAR ENDED JUNE 30, 2010 REVENUES Taxes and assessments Intergovernmental Miscellaneous Total Revenues EXPENDITURES Capital outlay Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 120,000 $ 120,000 $ 117,884 $ (2,116) - 500,000 - (500,000) 6,000 6,000 355 (5,645) 126,000 626,000 118,239 (507,761) 149,000 649,000 9,255 639,745 (28,014) (28,014) 108,984 136,998 $ - $ - $ 137,814 $ 137,814 -87- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INNET ASSETS - B UDGET (NON -GAAP BASIS) AND ACTUAL - STORM FUND YEAR ENDED JUNE 30, 2010 REVENUES Miscellaneous EXPENDITURES Personal services Materials and services Contingency Total Expenses REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in NET CHANGE INNET ASSETS NETASSETS, Beginning of year NETASSETS, End of :pear Budgeted Amounts Budget Original Final Basis Variance 155 $ 155 162,508 166,438 134,929 31,509 27,590 27,590 17,143 10,447 44,902 40,972 - 40,972 235,000 235,000 152,072 82,928 (235,000) (235,000) (151,917) (82,773) 235,000 235,000 235,000 - - - 83,083 (82,773) $ - $ - $ 83,083 $ (82,773) -88- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - B UDGET AND ACTUAL —LIBRARY ENDOWMENT FUND YEAR ENDED JUNE 30, 2010 Budgeted Amounts Original Final Actual REVENUES Miscellaneous $ 700 $ 700 $ EXPENDITURES Contingency REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of year FUND BALANCE, End of year 26,500 (25,800) 25,800 26,500 (25,800) 25,800 Variance 126 $ ( 574) - 26,500 126 25,926 - $ 25,828 $ 25,828 -89- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL — MUSEUMENDOWMENT FUND YEAR ENDED JUNE 30, 2010 REVENUES Miscellaneous EXPENDITURES Contingency REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 50 $ 50 $ 2,750 2,750 14 $ (36) - 2,750 (2,700) (2,700) 14 2,714 2,700 2,700 2,740 40 $ - $ - $ 2,754 $ 2,754 -90- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL —ECONOMIC DEVELOPMENT FUND YEAR ENDED JUNE 30, 2010 -91- Budgeted Amounts Original Final Actual Variance REVENUES Miscellaneous $ 2,000 $ 2,000 $ 610 $ (1,390) EXPENDITURES Debt service 36,519 36,519 36,519 - Contingency 103,212 103,212 - 103,212 Total Expenditures 139,731 139,731 36,519 103,212 REVENUES OVER (UNDER) EXPENDITURES (137,731) (137,731) (35,909) 101,822 FUND BALANCE, Beginning (?f year 137,731 137,731 142,885 5,154 FUND BALANCE, End of year $ - $ - $ 106,976 $ 106,976 -91- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - B UDGET AND ACTUAL —POLICE CONSTRUCTION FUND YEAR ENDED JUNE 30, 2010 -92- Budgeted Amounts Original Final Actual Variance REVENUES Miscellaneous $ 2,000 $ 2,000 $ 2,374 $ 374 EXPENDITURES Materials and services 581,988 581,988 71,793 510,195 Capital outlay 5,000 5,000 - 5,000 Total Expenditures 586,988 586,988 71,793 515,195 REVENUES OVER (UNDER) EXPENDITURES (584,988) (584,988) (69,419) 515,569 FUND BALANCE, Beginning (?f year 584,988 584,988 511,902 (73,086) FUND BALANCE, End of year $ - $ - $ 442,483 $ 442,483 -92- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL —SPECIAL ASSESSMENT FUND YEAR ENDED JUNE 30, 2010 REVENUES Taxes and assessments Miscellaneous Total Revenues EXPENDITURES Materials and services Capital outlay Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of .year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 395,800 $ 395,800 $ 158,664 $ (237,136) 43,000 43,000 118,682 75,682 438,800 438,800 277,346 (161,454) 11,000 11,000 2,663 8,337 70,000 70,000 62,818 7,182 (264,083) (264,083) 211,865 475,948 264,083 264,083 771,989 507,906 $ - $ - $ 983,854 $ 983,854 -93- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXTENDIT URES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL —PARKS SDC FUND YEAR ENDED JUNE 30, 2010 REVENUES Licenses and permits Miscellaneous Total Revenues EXPENDITURES Materials and services Capital outlay Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in NET CHANGE IN FUND BALANCE FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual Variance $ 90,000 $ 90,000 $ 18,825 $ (71,175) 102,000 102,000 24,757 (77,243) - 20,000 - 20,000 700,710 700,710 549,897 150,813 1,072,106 1,092,106 549,897 542,209 (970,106) (990,106) (525,140) 464,966 - 20,000 - (20,000) (970,106) (970,106) (525,140) 444,966 $ - $ - $ 646,870 $ 646,870 -94- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - B UDGET AND ACTUAL -STORM SDC FUND YEAR ENDED JUNE 30, 2010 -95- Budgeted Amounts Original Final Actual Variance REVENUES Licenses and permits $ 20,000 $ 20,000 $ 3,352 $ (16,648) Miscellaneous 10,000 10,000 2,950 (7,050) Total Revenues 30,000 30,000 6,302 (23,698) EXPENDITURES Materials and services 12,000 12,000 9,512 2,488 Capital outlay 250,000 275,000 196,639 78,361 Contingency 225,547 200,547 - 200,547 Total Expenditures 487,547 487,547 206,151 281,396 REVENUES OVER (UNDER) EXPENDITURES (457,547) (457,547) (199,849) 257,698 FUND BALANCE, Beginning of .vear 683,095 683,095 705,580 22,485 FUND BALANCE, End of year $ 225,548 $ 225,548 $ 505,731 $ 280,183 -95- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - B UDGET AND ACTUAL — PW FACILITY CONSTRUCTION FUND YEAR ENDED JUNE 30, 2010 Budgeted Amounts Original Final Actual REVENUES Miscellaneous $ 300 $ 300 $ EXPENDITURES Capital outlay Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of year FUND BALANCE, End of year Variance 85 $ (215) 15,000 15,000 3,914 11,086 5,500 5,500 - 5,500 20,500 20,500 3,914 16,586 (20,200) 20,200 -96- (20,200) (3,829) 16;371 20,200 20,153 (47) - $ 16,324 $ 16,324 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL — EQUIPMENT REPLACEMENT FUND YEAR ENDED JUNE 30, 2010 REVENUES Intergovernmental Miscellaneous Total Revenues EXPENDITURES Capital outlay REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in NET CHANGE IN FUND BALANCE FUND BALANCE, Beginning of year FUND BALANCE, End of year Bull; eted Amounts Original Final Actual Variance $ 49,500 $ 49,500 $ - $ (49,500) 5,000 5,000 1,946 (3,054) 54,500 54,500 1,946 (52,554) (483,068) (483,068) (94,066) 389,002 160,000 160,000 160,000 - (323,068) (323,068) 65,934 389,002 323,068 323,068 352,240 29,172 $ - $ - $ 418,174 $ 418,174 -97- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL OBLIGATIONDEBT FUND YEAR ENDED JUNE 30, 2010 -98- Budgeted Amounts Original Final Actual Variance REVENUES Taxes and assessments $ 490,000 $ 490,000 $ 491,110 $ 1,110 Miscellaneous 4,320 4,320 1,100 (3,220) Total Revenues 494,320 494,320 492,210 (2,110) EXPENDITURES Materials and services 1,798 1,798 6,101 (4,303) Debt service - Principal 260,000 260,000 260,000 Interest 245,000 245,000 243,156 Contingency 88,202 88,202 - 88,202 Total Expenditures 595,000 595,000 509,257 83,899 REVENUES OVER (UNDER) EXPENDITURES (100,680) (100,680) (17,047) 83,633 FUND BALANCE, Beginning of year 100,680 100,680 109,694 9,014 FUND BALANCE, End of :pear $ - $ - $ 92,647 $ 92,647 -98- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - B UDGET AND ACTUAL — BANCROFT BOND FUND YEAR ENDED JUNE 30, 2010 REVENUES Miscellaneous EXPENDITURES Contingency REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of year FUND BALANCE, End of year Budgeted Amounts Original Final Actual $ 100 $ 100 $ • •11 (6,500) 6,500 6,600 (6,500) 6,500 Variance 36 $ (64) - 6,600 36 6,536 $ - $ - $ 6,586 $ 6,586 -99- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXTENDIT URES AND CHANGES IN FUND BALANCE - B UDGET AND ACT UAL — URBAN RENEWAL DEBT FUND YEAR ENDED JUNE 30, 2010 REVENUES Taxes and assessments Miscellaneous Total Revenues EXPENDITURES Debt service Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE, Beginning of year FUND BALANCE, End of year Butl;eted Amounts Original Final Actual Variance $ 530,000 $ 530,000 $ 569,592 $ 39,592 15,000 15,000 5,362 (9,638) 545,000 545,000 574,954 29,954 1,006,407 1,006,407 651,560 354,847 682,593 682,593 - 682,593 1,689,000 1,689,000 651,560 1,037,440 (1,144,000) (1,144,000) (76,606) 1,067,394 $ 342,000 $ 342,000 $ 1,038,472 $ 696,472 -100- (page intentionally left blank) -loi- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF NET ASSETS - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS JUNE 30, 2010 Sewer Capital Water Sewer Improvement SDC SDC ASSETS Current Assets Cash and investments LIABILITIES NET ASSETS Restricted for construction $ 66,730 $ 617,748 $ 93,663 $ 66,730 $ 617,748 $ 93,663 -102- Totals 778,141 778,141 -103- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET A SSETS - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS YEAR ENDED JUNE 30, 2010 OPERATING REVENUES OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERA TING REVENUES (EXPENSES) Investment revenue Interest expense Transfers out Total Nonoperating Revenue (Expenses) NET INCOME BEFORE CONTRIBUTIONS Capital contributions CHANGE IN NET ASSETS NETASSETS, Beginning of year NETASSETS, End of year Sewer Capital Water Sewer Improvement SDC SDC 396 3,783 1,522 - (210,593) (225,814) (24,214) (194,880) (360,034) (23, 818) (23, 818) (23, 818) 95,435 (401,690) (401,690) 85,223 (316,467) 934,215 (584,326) (584,326) 119,700 (464,626) 558,289 $ 71,617 $ 617,748 $ 93,663 -104- Totals 5,701 (436,407) (579,128) (1,009,834) (1,009,834) 204,923 (804,911) 1,587,939 $ 783.028 -105- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASHFLOWS - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS YEAR ENDED JUNE 30, 2010 CASHAND INVESTMENTS, End of year $ 71,617 $ 617,748 $ Sewer Capital Water Improvement SDC RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Net Cash Provided by (Used in) Operating Activities $ Water Sewer SDC SDC (194,880) (360,034) 85,223 119,700 (210,593) (225,814) (125,370) (106,114) 3,783 1,522 (316,467) 934,215 (464,626) 558,289 93,663 Sewer SDC -106- Sewer Capital Improvement _ CASH FLOWS FROM OPERATING ACTIVITIES Net Cash Provided by (Used in) Operating Activities CASH FLOWS FROM NON- CAPITAL FINANCING ACTIVITIES Transfers out (24,214) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES System development revenue - Interest paid - Net Cash Provided by (Used in) Capital and Related Financing Activities - CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 396 Increase (Decrease) in Cash and Investments (23,818) CASHAND INVESTMENTS, Beginning of year 95,435 CASHAND INVESTMENTS, End of year $ 71,617 $ 617,748 $ Sewer Capital Water Improvement SDC RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Net Cash Provided by (Used in) Operating Activities $ Water Sewer SDC SDC (194,880) (360,034) 85,223 119,700 (210,593) (225,814) (125,370) (106,114) 3,783 1,522 (316,467) 934,215 (464,626) 558,289 93,663 Sewer SDC -106- Totals (579,128) 204,923 (436,407) (231,484) 5,701 (804,911) 1,587,939 $ 783,028 Totals -107- CITY OF WOODBURN, OREGON SCHED ULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET (NON -GAAP BASIS) AND ACTUAL - WATER FUND YEAR ENDED JUNE 30, 2010 -108- Budgeted Amounts Budget G'AAP Original Final Basis Basis REVENUES Charges for services $ 1,853,086 $ 1,853,086 $ 1,734,473 $ 1,734,473 Miscellaneous 21,000 21,000 14,716 14,716 Total Revenues 1,874,086 1,874,086 1,749,189 1,749,189 EXPENDITURES Personal services 1,126,718 1,126,718 885,327 967,556 Materials and services 570,471 628,171 545,132 679,192 Capital outlay /depreciation 40,000 40,000 9,212 237,532 Contingency 421,863 364,163 - - Total Expenses 2,159,052 2,159,052 1,439,671 1,884,280 REVENUES OVER (UNDER) EXPENDITURES (284,966) (284,966) 309,518 (135,091) OTHER FINANCING SOURCES (USES) Transfers in 85,000 85,000 85,000 1,645,274 Transfers out (346,000) (346,000) (346,000) (14,475,395) Total Other Financing Sources (Uses) (261,000) (261,000) (261,000) (12,830,121) NET CHANGE INNETASSETS (545,966) (545,966) 48,518 (12,965,212) NETASSETS, Beginning of year 596,884 596,884 643,983 9,506,955 NETASSETS, End of year $ 50,918 $ 50,918 $ 692,501 $ (3,458,257) -108- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INNET ASSETS - BUDGET (NON -GAAP BASIS) AND ACTUAL - SEWER FUND YEAR ENDED JUNE 30, 2010 REVENUES Charges for services Miscellaneous Total Revenues EXPENDITURES Personal services Materials and services Capital outlay /depreciation Debt service Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out NET CHANGE INNET ASSETS NETASSETS, Beginning of year NETASSETS, End of year Budgeted Amounts Budget GAAP Original Final Basis Basis $ 2,655,314 $ 2,655,314 $ 2,533,557 $ 2,533,557 19,200 19,200 20,041 20,041 2,674,514 2,674,514 2,553,598 2,553,598 1,101,607 1,113,751 1,028,961 1,114,682 926,760 956,260 838,737 897,633 123,000 123,000 118,575 1,889,599 - - - 5,567 380,462 338,818 - - 2,531,829 2,531,829 1,986,273 3,907,481 142,685 142,685 567,325 (1,353,883) - - - 16,663,339 (590,000) (590,000) (590,000) (945,583) (447,315) (447,315) (22,675) 14,363,873 526,664 526,664 530,387 17,626,692 $ 79,349 $ 79,349 $ 507,712 $ 31,990,565 - 109- CITY OF WOODBURN, OREGON SCHED ULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - B UDGET (NON -GAAP BASIS) AND ACT UAL — WWTP CONSTR UCTION FUND YEAR ENDED JUNE 30, 2010 REVENUES Charges for services Intergovernmental Miscellaneous Total Revenues EXPENDITURES Materials and services Capital outlay /depreciation Debt service Principal Interest Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE IN NET ASSETS NETASSETS, Beginning of year NET ASSETS, End of year Budgeted Amounts Original Final Budget G'AAP Basis Basis $ 2,377,714 $ 2,377,714 $ 2,337,362 $ 2,337,362 2,120,000 2,120,000 355,583 - 10,000 10,000 2,829 2,829 4,507,714 4,507,714 2,695,774 2,340,191 1,212,320 1,212,320 890,226 23,948 1,767,560 1,767,560 104,426 - 1,164,459 1,164,459 1,087,811 - 596,152 596,152 669,733 687,938 61,969 61,969 - - 4,802,460 4,802,460 2,752,196 711,886 (294,746) (294,746) (56,422) 1,628,305 - - - (1,684,727) (294,746) (294,746) (56,422) (56,422) 1,157,746 1,157,746 145,804 145,804 $ 863,000 $ 863,000 $ 89,382 $ 89,382 -110- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INNET ASSETS - BUDGET (NON -GAAP BASIS) AND ACTUAL - WWDC FUND YEAR ENDED JUNE 30, 2010 REVENUES Charges for services Miscellaneous Total Revenues EXPENDITURES Materials and services Capital outlay /depreciation Debt service Principal Interest Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Capital contributions Transfers in Transfers out Proceeds from issuance of debt Total Other Financing Sources (Uses) NET CHANGE INNET ASSETS NETASSETS, Beginning of year NETASSETS, End of year Budgeted Amounts Original Final Budget GAAP Basis Basis $ 1,700,436 $ 1,700,436 $ 1,580,368 $ 1,580,368 80,500 80,500 27,868 27,868 1,780,936 1,780,936 1,608,236 1,608,236 141,700 732,556 250,628 82 734,500 4,334,500 1,064,538 - 361,921 361,921 361,921 - 391,102 391,102 391,102 402,588 4,439,206 3,048,350 - - 6,068,429 8,868,429 2,068,189 402,670 (4,287,493) (7,087,493) (459,953) 1,205,566 (160,000) (160,000) - (1,341,180) - 2,800,000 1,267,204 942,865 (160,000) 2,640,000 1,267,204 (398,315) (4,447,493) (4,447,493) 807,251 807,251 5,201,493 5,201,493 5,792,564 5,792,564 $ 754,000 $ 754,000 $ 6,599,815 $ 6,599,815 -111- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INNET ASSETS - BUDGET (NON -GAAP BASIS) AND ACTUAL —SEWER CAPITAL IMPROVEMENT FUND YEAR ENDED JUNE 30, 2010 Budgeted Amounts Budget Original Final Basis REVENUES GAAP Basis Miscellaneous $ 1,500 $ 1,500 $ 396 $ EXPENDITURES Debt service Principal Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE INNET ASSETS NETASSETS, Beginning of year NETASSETS, End of :pear $ 396 29,102 29,102 29,101 - 67,967 67,967 - - 97,069 97,069 29,101 - (95,569) (95,569) (28,705) 396 - - - (24,214) (95,569) (95,569) (28,705) (23,818) 95,569 95,569 95,435 95,435 - $ - $ 66,730 $ 71,617 -112- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INNET ASSETS - BUDGET (NON -GAAP BASIS) AND ACTUAL - WATER SDC FUND YEAR ENDED JUNE 30, 2010 REVENUES Licenses and permits Miscellaneous Total Revenues EXPENDITURES Capital outlay /depreciation Debt service Principal Interest Contingency Total Expenses REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE INNET ASSETS NETASSETS, Beginning of year NET ASSETS, End of year BudgetedAmounts Budget GAAP Original Final Basis Basis $ 150,000 $ 150,000 $ 85,223 $ 85,223 162,000 162,000 89,006 89,006 436,500 436,500 - - 194,880 194,880 194,879 (1) 210,594 210,594 210,594 210,594 103,034 103,034 - - 945,008 945,008 405,473 210,593 (783,008) (783,008) (316,467) (121,587) - - - (194,880) (783,008) (783,008) (316,467) (316,467) 886,043 886,043 934,215 934,215 $ 103,035 $ 103,035 $ 617,748 $ 617,748 - 113- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INNET ASSETS - BUDGET (NON -GAAP BASIS) AND ACTUAL -SEWER SDC FUND YEAR ENDED JUNE 30, 2010 REVENUES Licenses and permits Miscellaneous Total Revenues EXPENDITURES Debt service Principal Interest Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE INNET ASSETS NETASSETS, Beginning of year NETASSETS, End of year Budgeted Amounts Budget GAAP Original Final Basis Basis 664,254 585.848 225,814 $ 300,000 $ 300,000 $ 119,700 $ 119,700 15,000 15,000 1,522 1,522 315,000 315,000 121,222 121,222 388,153 388,153 360,034 - 198,717 198,717 225,814 225,814 77,384 77,384 - - 664,254 664,254 585.848 225,814 (349,254) (349,254) (464,626) (104,592) - - - (360,034) (349,254) (349,254) (464,626) (464,626) 599,254 599,254 558,289 558,289 $ 250,000 $ 250,000 $ 93,663 $ 93,663 -114- (page intentionally left blank) - 115- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF NET ASSETS -INTERNAL SERVICE FUNDS JUNE 30, 2010 Info Central Services Stores Insurance ASSETS Current assets Cash and investments Accounts receivable Inventories Total Current Assets Noncurrent Assets Due from other funds Prepaid expenses Other capital assets, net of depreciation Total Assets LIABILITIES Current Liabilities Accounts payable Total Current Liabilities Noncurrent Liabilities Due to other funds Compensated absences payable Total Liabilities NET ASSETS Investment in capital assets Unrestricted Total Net Assets $ 30,829 $ - $ 39,177 4,000 - - - 8,971 - 34,829 8,971 39,177 2,131 - 445 - 73,024 - - 107,853 11,547 39,177 1,491 - 21,768 1,491 - 21,768 84 798 - 13,803 - - 15,378 798 21,768 73,024 - - $ 92,475 $ 10,749 $ 17,409 -116- AS & Environ Building $ 344,544 $ 102,845 $ 517,395 - - 4,000 344,544 102,845 530,366 - - 2,131 - - 445 305,481 128,863 507,368 650,025 231,708 1,040,310 12,451 21,366 57,076 12,451 21,366 57,076 787 99 1,768 57,638 305,481 45,977 141,559 128,863 507,368 $ 592,387 $ 185,731 $ 898,751 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2010 OPERATING REVENUES Licenses and permits Charges for services Miscellaneous Total Operating Revenues OPERATING EXPENSES Personal services Materials and services Depreciation Total Operating Expenses OPERATING INCOME (LOSS) NONOPERA TING REVENUES (EXPENSES) Investment revenue Transfers in Transfers out Total Nonoperating Revenues (Expenses) CHANGE IN NET ASSETS NETASSETS, Beginning of year NETASSETS, End of year Info Central Services Stores Insurance 580,432 6,691 328,414 128 - 13,506 580,560 6,691 341,920 280,110 - - 221,106 5,599 511,205 15,008 - - 516,224 5,599 511,205 64,336 1,092 (169,285) (291) (8) 220 (46,666) - - (46,957) (8) 220 17,379 1,084 (169,065) 92,4/- $ lU, /49 $ l /,4U9 -118- Tech & Environ Building Services Maintenance Totals $ 24,544 $ - $ 24,544 302,353 792,083 2,009,973 867 4,986 19,487 327,764 797,069 2,054,004 906,444 351,090 1,537,644 158,542 379,477 1,275,929 15,880 4,570 35,458 1,080,866 735,137 2,849,031 (753,102) 61,932 (795,027) 1,775 290 1,986 704,625 - 704,625 (28,100) (2,189) (76,955) 678,300 (1,899) 629,656 (74,802) 60,033 (165,371) 667,189 125,698 1,064,122 $ 592,387 $ 185,731 $ 898,751 - 119- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2010 CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers Paid to suppliers Paid to employees Net Cash Provided by (Used in) Operating Activities CASH FLOWS FROMNON - CAPITAL FINANCING ACTIVITIES Received from (paid to) other funds Transfers in Transfers out Net Cash Provided by (Used in) Non - Capital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Net Cash Used in Capital and Related Financing Activities CASH FLOWS FR OM INVES TING ACTIVITIES Interest on investments Increase (Decrease) in Cash and Investments CASHAND INVESTMENTS, Beginning of year CASHAND INVESTMENTS, End of year RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Depreciation Change in assets and liabilities Accounts receivable Inventory Prepaid expenses Customer deposits Accrued vacation payable Accounts payable and accrued liabilities Net Cash Provided by (Used in) Operating Activities Information Central 220 Services Stores Insurance 18,460 $ 576,560 $ 6,691 $ 341,920 (219,826) (6,890) (526,685) (280,110) - - 76,624 (199) (184,765) 84 (1,333) - (64,048) - - - (63,964) (1,333) - (291) (8) 220 12,369 (1,540) (184,545) 18,460 1,540 223,722 $ 30,829 $ - $ 39,177 Information Central Services Stores Insurance $ 64,336 $ 1,092 $ (169,285) 15,008 - - (4,000) - - - (1,291) - 1,280 - (15,480) $ 76,624 $ (199) $ (184,765) -120- Technical and 290 1,986 Environmental Building (159,026) Services Maintenance Totals $ 326,722 $ 797,069 $ 2,048,962 (147,474) (382,155) (1,283,030) (906,444) (351,090) (1,537,644) (727,196) 63,824 (771,712) 3,998 99 2,848 700,000 - 700,000 (28,100) - (92,148) 675,898 99 610,700 1,775 290 1,986 (49,523) 64,213 (159,026) 394,067 38,632 676,421 $ 344,544 $ 102,845 $ 517,395 Technical and Environmental Building Services Maintenance Totals $ (753,102) $ 61,932 $ (795,027) 15,880 4,570 35,458 958 - (3,042) - - (1,291) (2,000) - (2,000) 11,068 (2,678) (5,810) $ (727,196) $ 63,824 $ (771,712) -121- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INNET ASSETS (B UDGETARYBASIS) - B UDGET AND ACTUAL -INFORMATION SERVICES FUND YEAR ENDED JUNE 30, 2010 REVENUES Charges for services Miscellaneous Total Revenues EXPENDITURES Personal services Materials and services Capital outlay /depreciation Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE INNET ASSETS NETASSETS, Beginning of year NETASSETS, End of year (Budget) BudgetedAmounts Budget GAAP Original Final Basis Basis (46,666) (6,719) (6,719) 15,005 $ 589,044 $ 589,044 $ 580,432 $ 580,432 477 477 (163) (163) 589,521 589,521 580,269 580,269 286,920 286,920 280,110 280,110 204,878 204,878 202,899 221,106 78,500 78,500 82,255 15,008 25,942 25,942 - - 596,240 596,240 565,264 516,224 (6,719) (6,719) 15,005 64,045 - - - (46,666) (6,719) (6,719) 15,005 17,379 12,719 12,719 18,249 75,096 $ 6,000 $ 6,000 $ 33,254 $ 92,475 -122- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INNET ASSETS (B UDGETARYBASIS) - B UDGET AND ACT UAL — CONTROL STORES FUND YEAR ENDED JUNE 30, 2010 BudgetedAmounts Budget GAAP Original Final Basis Basis REVENUES Charges for services $ 10,000 $ 10,000 $ 6,691 $ 6,691 Miscellaneous - - (8) (8) Total Revenues 10,000 10,000 6,683 6,683 EXPENDITURES Materials and services 13,000 13,000 5,599 5,599 Contingency 6,000 6,000 - - Total Expenditures 19,000 19,000 5,599 5,599 REVENUES OVER (UNDER) EXPENDITURES (9,000) (9,000) 1,084 1,084 NETASSETS, Beginning of year 9,000 9,000 9,665 9,665 NETASSETS, End of year $ - $ - $ 10,749 $ 10,749 -123- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS (BUDGETARY BASIS) - BUDGET AND ACTUAL —INSURANCE FUND YEAR ENDED JUNE 30, 2010 BudgetedAmounts Budget GAAP Original Final Basis Basis REVENUES Charges for services $ 486,152 $ 486,152 $ 328,414 $ 328,414 Miscellaneous 8,000 8,000 13,726 13,726 Total Revenues 494,152 494,152 342,140 342,140 EXPENDITURES Materials and services 559,437 559,437 511,205 511,205 Contingency 140,679 140,679 - - Total Expenditures 700,116 700,116 511,205 511,205 REVENUES OVER (UNDER) EXPENDITURES (205,964) (205,964) (169,065) (169,065) NETASSETS, Beginning of year 205,964 205,964 186,474 186,474 NETASSETS, End of year $ - $ - $ 17,409 $ 17,409 -124- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXTENDIT URES AND CHANGES IN NET ASSETS (BUDGETARY BASIS) - B UDGET AND ACTUAL - TECHINICAL & ENVIRONMENTAL SERVICES FUND YEAR ENDED JUNE 30, 2010 REVENUES Licenses and permits Charges for services Miscellaneous Total Revenues EXPENDITURES Personal services Materials and services Capital outlay /depreciation Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total Other Financing Sources (Uses) NET CHANGE IN NET ASSETS NETASSETS, Beginning of year NETASSETS, End of year Budgeted Amounts Budget GAAP Original Final Basis Basis $ 96,000 $ 96,000 $ 24,544 $ 24,544 509,500 509,500 302,353 302,353 16,000 16,000 2,642 2,642 621,500 621,500 329,539 329,539 1,182,329 1,208,151 906,444 906,444 207,953 215,453 175,467 158,542 6,175 6,175 6,175 15,880 149,450 116,128 - - 1,545,907 1,545,907 1,088,086 1,080,866 (924,407) (924,407) (758,547) (751,327) 700,000 700,000 700,000 704,625 (5,000) (5,000) (5,000) (28,100) 695,000 695,000 695,000 676,525 (229,407) (229,407) (63,547) (74,802) $ 74,141 $ 74,141 $ 331,306 $ 592.387 -125- CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS (BUDGETARY BASIS) - BUDGET AND ACTUAL -BUILDING MAINTENANCE FUND YEAR ENDED JUNE 30, 2010 REVENUES Charges for services Miscellaneous Total Revenues EXPENDITURES Personal services Materials and services Capital outlay /depreciation Contingency Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE INNET ASSETS NETASSETS, Beginning of year NETASSETS, End of year BudgetedAmounts Budget GAAP Original Final Basis Basis (2,189) 3,704 3,704 66,792 $ 792,083 $ 792,083 $ 792,083 $ 792,083 3,000 3,000 5,276 5,276 795,083 795,083 797,359 797,359 372,602 372,602 351,090 351,090 405,906 416,406 379,477 379,477 - - - 4,570 12,871 2,371 - - 791,379 791,379 730,567 735,137 3,704 3,704 66,792 62,222 - - - (2,189) 3,704 3,704 66,792 60,033 8,844 8,844 14,588 125,698 $ 12,548 $ 12,548 $ 81,380 $ 185,731 -126- OTHER FINANCIAL SCHEDULES -127- CITY OF WOODBURN, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES YEAR ENDED JUNE 30, 2010 Tax Year 2009 -10 2008 -09 2007 -08 2006 -07 2005 -06 2004 -05 2003 -04 Prior $ 646,135 $ 8,772,554 $ (269,035) $ (8,471,103) Cash with county Property taxes receivable Balances July 1, 2009 408,76 148,67 48,98 18,27 5,30 3,87 12,26 Interest, 2009 -2010 Discounts and Levy Adjustments Collections - $ 8,772,554 $ (245,860) $ (8,162,750) $ 7 - (8,882) (215,698) 4 - (3,444) (57,908) 7 - (2,132) (24,072) 0 - (2,425) (9,821) 2 - (1,755) (135) 1 - (1,568) (35) 4 - (2,969) (684) Balances June 30, 2010 363,944 184,187 87,322 22,783 6,024 3,412 2,268 8,611 678,551 77,156 $ 755,707 -128- (page intentionally left blank) -129- CITY OF WOODBURN, OREGON SCHEDULE OF DEBT PRINCIPAL AND INTEREST TRANSACTIONS YEAR ENDED JUNE 30, 2010 PRINCIPAL TRANSACTIONS Governmental Activities Series 2005 GO Bonds 1999 OEDD Loan 2005 URA Loan Business -type Activities Series 2003 Water Bonds 1992 OEDD Loan 2005 OEDD Loan 2005 SDWR Loan 2009 ARRA Loan 1991 OEDD Loan 1999 OEDD Loan 1999 OEDD Loan 2001 OEDD Loan 2007 Oregon DEQ Loan 2007 Oregon DEQ Loan Interest Date of Fiscal Year Rates Issue of'Maturity 4.21% 4.85 -4.9% 2005 2024 -25 5.01% 1999 2017 -18 4.22% 2005 2015 -16 3.00 -4.63% 2003 2028 -29 6.32% 1992 2011 -12 4.21% 2005 2024 -25 4.21% 2005 2024 -25 1.00% 2009 n/a 5.46% 1991 2010 -11 4.74% 1999 2017 -18 3.93% 1999 2018 -19 3.87% 2001 2018 -19 1.05% 2007 2013 -14 1.53% 2007 2030 -31 - 130- Outstanding Outstanding July 1, New Principal June 30, 2009 Issues Paid 2010 $ 6,190,000 $ - $ (260,000) $ 5,930,000 252,302 - (23,834) 228,468 1,245,363 - (177,970) 1,067,393 7,687,665 - (461,804) 7,225,861 7,278,522 - (246,810) 7,031,712 77,331 - (24,214) 53,117 3,440,156 - (154,995) 3,285,161 3,440,166 - (154,996) 3,285,170 - 324,339 - 324,339 85,648 - (41,476) 44,172 296,173 - (24,687) 271,486 2,324,654 - (206,232) 2,118,422 18,188,499 - (1,216,926) 16,971,573 370,804 243,483 - 614,287 191,241 112,100 - 303,341 $ 43,380,859 $ 679,922 $ (2,532,140) $ 41,528,641 - 131 - CITY OF WOODBURN, OREGON SCHEDULE OF DEBT PRINCIPAL AND INTEREST TRANSACTIONS (Continued) YEAR ENDED JUNE 30, 2010 Business -type Activities Series 2003 Water Bonds 3.00 -4.63% 2003 Unmatured 1992 OEDD Loan 6.32% 1992 Interest 2005 OEDD Loan 4.21% 2005 Outstanding 2005 SDWR Loan Interest Date of July I, 2009 ARRA Loan Rates Issue 2009 INTEREST TRANSACTIONS 5.46% 1991 8,445 Governmental Activities 4.74% 1999 78,262 Series 2005 GO Bonds 4.85 -4.9% 2005 $ 2,390,481 1999 OEDD Loan 5.01% 1999 67,848 2005 URA Loan 4.22% 2005 177,963 2007 Oregon DEQ Loan 1.53% 2007 2,636,292 Business -type Activities Series 2003 Water Bonds 3.00 -4.63% 2003 3,876,989 1992 OEDD Loan 6.32% 1992 9,974 2005 OEDD Loan 4.21% 2005 1,357,061 2005 SDWR Loan 4.21% 2005 1,357,061 2009 ARRA Loan 1.00% 2009 - 1991 OEDD Loan 5.46% 1991 8,445 1999 OEDD Loan 4.74% 1999 78,262 1999 OEDD Loan 3.93% 1999 495,023 2001 OEDD Loan 3.87% 2001 4,809,338 2007 Oregon DEQ Loan 1.05% 2007 - 2007 Oregon DEQ Loan 1.53% 2007 - $ 11,992,153 -132- Unmatured Interest New Interest June 30, Issues Paid 2010 $ - $ (243,156) $ 2,147,325 - (12,685) 55,163 - (49,763) 128,200 - (305,604) 2,330,688 (312,034) $ 3,564,955 - (4,887) 5,087 - (144,831) 1,212,230 - (144,831) 1,212,230 - (5,567) 2,878 - (14,408) 63,854 - (100,976) 394,047 - (780,163) 4,029,175 $ - $ (1,507,697) $ 10,484,456 -133- CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS JUNE 30, 2010 Fiscal Year Ending 2005 General Obligation Bonds June 30, Principal Interest Total Principal Interest Total 2011 $ 275,000 $ 234,056 $ 509,056 $ 24,027 $ 11,493 $ 35,520 2012 290,000 224,431 514,431 24,228 10,291 35,292 2013 300,000 214,281 514,281 24,440 9,079 35,292 2014 320,000 203,781 523,781 29,663 7,857 32,351 2015 335,000 192,261 527,261 29,895 6,373 36,268 2016 350,000 179,866 529,866 30,141 4,879 35,020 2017 370,000 166,566 536,566 30,399 3,371 33,770 2018 385,000 152,136 537,136 35,675 1,820 37,495 2019 405,000 136,736 541,736 - - - 2020 425,000 120,536 545,536 - - - 2021 445,000 103,536 548,536 - - - 2022 470,000 85,180 555,180 - - - 2023 495,000 65,793 560,793 - - - 2024 520,000 45,003 565,003 - - - 2025 545,000 23,163 568,163 - - - 2026 - - - - - - 2027 - - - - - - 2028 - - - - - - 2029 - - - - - - $ 5,930,000 $ 2,147,325 $ 8,077,325 $ 228,468 $ 55,163 $ 283,631 1999 OEDD Loan - 134- 2005 LIRA Loan 2003 Water Bonds Principal Interest Principal Interest $ 185,560 $ 42,133 $ 227,693 $ 253,064 $ 304,630 $ 557,694 193,557 34,175 227,732 259,485 296,279 555,764 201,855 25,877 227,732 271,065 287,068 558,133 210,509 17,223 227,732 282,734 277,241 559,975 219,534 8,198 227,732 289,548 266,498 556,046 56,378 594 56,972 301,530 254,916 556,446 - - - 313,591 242,854 556,445 - - - 325,789 229,997 555,786 - - - 343,132 216,314 559,446 - - - 355,631 201,559 557,190 - - - 373,299 185,912 559,211 - - - 391,148 169,113 560,261 - - - 404,158 151,316 555,474 - - - 427,356 132,624 559,980 - - - 445,702 112,858 558,560 - - - 464,204 92,245 556,449 - - - 487,867 70,775 558,642 - - - 511,700 48,211 559,911 - - - 530,709 24,545 555,254 $ 1,067,393 $ 128,200 $ 1,195,593 $ 7,031,712 $ 3,564,955 $ 10,596,667 Total Total -135- CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS (Continued) JUNE 30, 2010 Fiscal Year Ending 1992 OEDD Loan June 30, Principal Interest Total Principal Interest 2011 $ 25,745 $ 3,357 $ 29,102 $ 161,521 $ 138,305 $ 299,826 2012 27,372 1,730 29,102 168,321 131,505 299,826 2013 - - - 175,407 124,419 299,826 2014 - - - 182,792 117,034 299,826 2015 - - - 190,487 109,339 299,826 2016 - - - 198,507 101,319 299,826 2017 - - - 206,864 92,962 299,826 2018 - - - 215,573 84,253 299,826 2019 - - - 224,649 75,178 299,827 2020 - - - 234,106 65,720 299,826 2021 - - - 243,962 55,864 299,826 2022 - - - 254,233 45,593 299,826 2023 - - - 264,936 34,890 299,826 2024 - - - 276,090 23,736 299,826 2025 - - - 287,713 12,113 299,826 2026 - - - - - - 2027 - - - - - - 2028 - - - - - - 2029 - - - - - - $ 53,117 $ 5,087 $ 58,204 $ 3,285,161 $ 1,212,230 $ 4,497,391 2005 OEDD Loan Total - 136- 2005 SDWR Loan Principal Interest Total 2009 ARRA Loan Principal Interest Total $ 161,521 $ 138,305 $ 299,826 $ 324,339 $ - $ 324,339 168,321 131,505 299,826 - - - 175,407 124,419 299,826 - - - 182,792 117,034 299,826 - - - 190,487 109,339 299,826 - - - 198,507 101,319 299,826 - - - 206,864 92,962 299,826 - - - 215,573 84,253 299,826 - - - 224,649 75,178 299,827 - - - 234,106 65,720 299,826 - - - 243,962 55,864 299,826 - - - 254,233 45,593 299,826 - - - 264,936 34,890 299,826 - - - 276,090 23,736 299,826 - - - 287,722 12,113 299,835 - - - $ 4,497,400 $ 324,339 $ - $ 324,339 $ 3,285,170 $ 1,212,230 - 137- CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS (Continued) JUNE 30, 2010 Fiscal Year Ending 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1991 OEDD Loan 1999 OEDD Loan Principal Interest Total Principal Interest $ 44,172 $ 2,878 $ 47,050 $ 29,901 $ 13,284 $ 43,185 - - - 30,129 11,893 42,022 - - - 30,372 10,462 40,834 - - - 30,632 8,989 39,621 - - - 35,909 7,488 43,397 - - - 36,199 5,728 41,927 - - - 36,509 3,918 40,427 - - - 41,835 2,092 43,927 $ 44,172 $ 2,878 $ 47,050 $ 271,486 $ 63,854 $ 335,340 - 138- Total 1999 OEDD Loan 2001 OEDD Loan Principal Interest Principal Interest $ 214,417 $ 81,168 $ 295,585 $ 1,264,477 $ 644,683 $ 1,909,160 222,926 72,658 295,584 1,313,886 595,274 1,909,160 231,773 63,811 295,584 1,365,224 543,936 1,909,160 240,972 54,613 295,585 1,418,570 490,590 1,909,160 250,535 45,050 295,585 1,474,000 435,160 1,909,160 260,478 35,107 295,585 1,531,596 377,564 1,909,160 270,815 24,770 295,585 1,591,442 317,718 1,909,160 281,562 14,022 295,584 1,653,626 255,534 1,909,160 144,944 2,848 147,792 1,718,241 190,919 1,909,160 - - - 1,785,380 123,780 1,909,160 - - - 1,855,131 54,017 1,909,148 394,047 4,029,175 $ $ 2,118,422 $ $ 2,512,469 $ 16,971,573 $ 21,000,748 Total Total - 139- CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS (Continued) JUNE 30, 2010 Fiscal Year Ending 2007 Oregon DEQ Loan 2007 Oregon DEQ Loan June 30, Principal Interest Total Principal Interest Total 2011 $ 614,287 $ - $ 614,287 $ 303,341 $ - $ 303,341 2012 - - - - - - 20 13 - - - - - - 2014 - - - - - - 2015 - - - - - - 2016 - - - - - - 2017 - - - - - - 2018 - - - - - - 2019 - - - - - - 2020 - - - - - - 2021 - - - - - - 2022 - - - - - - 2023 - - - - - - 2024 - - - - - - 2025 - - - - - - 2026 - - - - - - 2027 - - - - - - 2028 - - - - - - 2029 - - - - - - $ 614,287 $ - $ 614,287 $ 303,341 $ - $ 303,341 -140- Principal 3,881,372 2,698,225 2,775,543 2,898,664 3,015,395 2,963,336 3,026,484 3,154,633 3,060,615 3,034,223 3,161,354 1,369,614 1,429,030 1,499,536 1,566,137 464,204 487,867 511,700 530,709 Totals Interest 1,614,292 1,509,741 1,403,352 1,294,362 1,179,706 1,061,292 945,121 824,107 697,173 577,315 455,193 345,479 286,889 225,099 160,247 92,245 70,775 48,211 24,545 1; 41,528,641 $ 12,815,144 Total 5,495,664 4,207,966 4,178,895 4,193,026 4,195,101 4,024,628 3,971,605 3,978,740 3,757,788 3,611,538 3,616,547 1,715,093 1,715,919 1,724,635 1,726,384 556,449 558,642 559,911 555,254 $ 54,343,785 -141- REGULATORY SECTION -142- GROVE, MUELLER & SWANK, P. C. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 475 Cottage Street NE, Suite 200, Solent, Oregon 97301 (503) 581 -7788 INDEPENDENT A UDITOR'S REPORT REQ UIRED BY OREGON STATE REGULATIONS Board of Directors City of Woodburn Woodburn, Oregon We have audited the basic financial statements of the City of Woodburn as of and for the year ended June 30, 2010, and have issued our report thereon dated * *, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Compliance As part of obtaining reasonable assurance about whether the City of Woodburn's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162- 10 -000 through 162 -10 -320 of the Minimum Standards for Audits of Oregon Municipal Corporations, noncompliance with which could have a direct and material effect on the determination of financial statements amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. We performed procedures to the extent we considered necessary to address the required comments and disclosures which included, but were not limited to the following: ■ Deposit of public funds with financial institutions (ORS Chapter 295). ■ Indebtedness limitations, restrictions and repayment. ■ Budgets legally required (ORS Chapter 294). ■ Insurance and fidelity bonds in force or required by law. ■ Programs funded from outside sources. ■ Highway revenues used for public highways, roads, and streets. ■ Authorized investment of surplus funds (ORS Chapter 294). ■ Public contracts and purchasing (ORS Chapters 279A, 279B, 279C). ■ Accountability for collecting or receiving money by elected officials — no money was collected or received by elected officials. In connection with our testing nothing came to our attention that caused us to believe the City was not in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162 -10 -000 through 162 -10 -320 of the Minimum Standards for Audits of Oregon Municipal Corporations, except for expenditures in excess of appropriations. -143- OAR 162 -10 -0230 Internal Control In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. A material weakness is a deficiency, or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. We did issue a separate significant deficiency letter to management dated * *, 2011. This report is intended solely for the information and use of the board of directors /council members /commissioners and management of the City of Woodburn and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. GROVE, MUELLER & SWANK, P. C. CERTIFIED PUBLIC ACCO UNTANTS Charles A. Swank, A Shareholder * *, 2011 -144-