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November 25, 2013 Agenda KF,M CW ATHRYN IGLEYAYOR ITY OF OODBURN TAL,CW1 ERESA LONSO EONOUNCILOR ARD LE,CWII ISA LLSWORTHOUNCILOR ARD CCA PMC,CWIII ITYOUNCILGENDA ETER CALLUMOUNCILOR ARD JC,CWIV AMES OXOUNCILOR ARD FL,CWV RANK ONERGANOUNCILOR ARD N25,2013–7:00.. OVEMBERPM EM,CWVI RIC ORRISOUNCILOR ARD CHCC–270MS ITY ALL OUNCIL HAMBERS ONTGOMERY TREET 1.CALL TO ORDER AND FLAG SALUTE 2.ROLL CALL 3.ANNOUNCEMENTS AND APPOINTMENTS Announcements: A.City Hall will be closed November 28 and 29 for the Thanksgiving Holiday. The Library and Aquatic Center will be closed on November 28 but will be open normal business hours the rest of the weekend.The Aquatic Center will be hosting its annual Black Friday sale on Friday, November 29. B.Please join us for the Annual Mayor’s Tree Lighting on Sunday, December 1. The whole family is invited to this traditional holiday event that takes place at two downtown locations. We’ll start at the Settlemier House at 5:30pm to light the tree and sing some carols, led by the Dickens Carolers. We will then parade to the Downtown Plaza by candlelight, where we will light the Plaza tree, enjoy festive entertainment, hot chocolate, cookies, and maybe even be visited by Santa himself. Appointments: None. 4.COMMUNITY/GOVERNMENT ORGANIZATIONS A.Chamber of Commerce 5.PROCLAMATIONS/PRESENTATIONS Proclamations: A.Honoring the Fallen Police Reserve Officer of Oregon City 1 This facility is ADA accessible. If you need special accommodation, please contact the City Recorder at 503-980-6318at least 24 hours prior to this meeting. **Habrá intérpretes disponibles para aquéllas personas que no hablan Inglés, previo acuerdo. Comuníquese al (503) 980-2485.** November 25, 2013Council Agenda Page i Presentations: B.2013 Mary Tennant Award For Excellence in Public Service C.Oregon Peace Officers Association Award Recognition D.AuditReport2 6.COMMUNICATIONS A.151 November 20, 2013Letterfrom Tim Potter of ODOT regarding Sequoia Trees – This allows the public to introduce items for 7.BUSINESS FROM THE PUBLIC Council consideration not already scheduled on the agenda. –Items listed on the consent agenda are considered 8.CONSENT AGENDA routine and may be adopted by one motion. Any item may be removed for discussion at the request of a Council member. A.Woodburn City Council minutes of October 28, 2013153 Recommended Action: Approve the minutes. B.Woodburn City Council Executive Session minutes of October156 28, 2013 Recommended Action: Approve the minutes. C.Woodburn Planning Commission minute ofAugust 22, 2013157 Recommended Action: Accept the minutes. D.Medical Marijuana Dispensaries160 Recommended Action:Receive the report. 9.TABLED BUSINESS None. 10.PUBLIC HEARINGS None. –Members of the public wishing to comment on items of 11.GENERAL BUSINESS general business must complete and submit aspeaker’s card to the City Recorder prior to commencing this portion of the Council’s agenda. Comment time may be limited by Mayoral prerogative. A.Council Bill No.2940-A Resolution Initiating Consideration of 189 Legislative Amendments to the Woodburn Development Ordinance for the Year 2013-14 November 25, 2013CouncilAgenda Page ii Recommended Action:Adopt the attached resolution initiating consideration of revision of temporary signage standards in the commercial and industrial zones and updating the Planned Unit Development (PUD) standards. B.Expansion of the Woodburn Enterprise Zone 195 Recommended Action:Direct staff to proceed with the next steps to consider expanding the Woodburn Enterprise Zone to include the City of Gervais. – These 12.PLANNING COMMISSION OR ADMINISTRATIVE LAND USE ACTIONS are Planning Commission or Administrative Land Use actions that may be called up by the City Council. None. 13.CITY ADMINISTRATOR’S REPORT 14.MAYOR AND COUNCIL REPORTS 15.ADJOURNMENT November 25, 2013CouncilAgenda Page iii 1 CITY OF WOODBURN, OREGON Annual Financial Report Year Ended June 30, 2013 2 CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page INTRODUCTORY SECTION Principal Officials v FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3-9 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position 10 Statement of Activities 11 Fund Financial Statements Balance Sheet - Governmental Funds 12 Reconciliation of Balance Sheet - Governmental Funds to the Statement of Net Position 13 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 14 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities 15 Statement of Fund Net Position - Proprietary Funds 16 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 17 Statement of Cash Flows - Proprietary Funds 18-19 Statement of Fiduciary Net Position 20 Statement of Changes in Fiduciary Net Position 21 Notes to Basic Financial Statements 22-42 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund 43 Street Fund 44 OTHER SUPPLEMENTAL INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Street SDC Fund 45 Nonmajor Governmental Funds Combining Balance Sheet 46-47 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 48-50 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Transit Fund 51 Building Fund 52 Search and Seizure Fund 53 Housing Rehabilitation Fund 54 RSVP Fund 55 Cable Franchise Fund 56 Local Gas Tax Fund 57 Library Endowment Fund 58 Museum Endowment Fund 59 Lavelle Black Trust Fund 60 3 CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page FINANCIAL SECTION (Continued) OTHER SUPPLEMENTAL INFORMATION (Continued) Nonmajor Governmental Funds (Continued) Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Continued) General Construction Fund 61 Special Assessment Fund 62 Street/Storm Capital Improvement Fund 63 Parks SDC Fund 64 Storm SDC Fund 65 Equipment Replacement Fund 66 Police Construction Fund 67 GO Debt Fund 68 Urban Renewal Debt Fund 69 Nonmajor Proprietary Funds Combining Statement of Fund Net Position - Enterprise Funds 70 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Enterprise Funds 71 Combining Statement of Cash Flows - Enterprise Funds 72 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP Basis) and Actual – Enterprise Funds Water Fund 73 Sewer Fund 74 WWTP Construction Fund 75 WWD Construction Fund 76 Water SDC Fund 77 Sewer SDC Fund 78 Surfacewater Fund 79 Internal Services Funds Combining Statement of Fund Net Position - Internal Service Funds 80 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds 81 Combining Statement of Cash Flows - Internal Service Funds 82 Schedules of Revenues, Expenses and Changes in Fund Balances (Budgetary Basis) - Budget and Actual Information Services Fund 83 Insurance Fund 84 Technical and Environmental Services Fund 85 Building Maintenance Fund 86 Other Financial Schedules Schedule of Property Tax Transactions and Outstanding Balances 87 Schedule of Bond and Bond Interest Transactions 88 Schedule of Future Debt Service Requirements 89-90 REGULATORY SECTION INDEPENDENT AUDITOR'S REPORT REQUIRED BY OREGON STATE REGULATIONS 91-92 4 CITY OF WOODBURN, OREGON JUNE 30, 2013 MAYOR AND COUNCIL MEMBERS Name Term Expires Mayor Kathryn Figley December 31, 2014 270 Montgomery Street Woodburn, OR 97071 Council Members Peter McCallum, President December 31, 2014 270 Montgomery Street Woodburn, OR 97071 Teresa Alonso Leon December 31, 2016 270 Montgomery Street Woodburn, OR 97071 Lisa Ellsworth December 31, 2016 270 Montgomery Street Woodburn, OR 97071 Eric Morris December 31, 2016 270 Montgomery Street Woodburn, OR 97071 Jim Cox December 31, 2014 270 Montgomery Street Woodburn, OR 97071 Frank Lonergan December 31, 2014 270 Montgomery Street Woodburn, OR 97071 Staff Scott Derickson, City Administrator N. Robert Shields, City Attorney Christina Shearer, Finance Director v 5 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Council Members City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Woodburn as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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 as of June 30, 2013, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. - 1 - 6 Other Matters Management’s Discussion and Analysis Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3-9 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Required and Other Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The required supplementary budgetary information and other supplementary information as listed in the table of contents are presented for purposes of additional analysis and are not required parts of the basic financial statements. This information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, this information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Report on Other Legal and Regulatory Requirements In accordance with Minimum Standards for Audits of Oregon Municipal Corporations, we have issued our report dated November 14, 2013, on our consideration of the City's compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS By: Thomas E. Glogau, A Shareholder November 14, 2013 - 2 - 7 CITY OF WOODBURN Year Ended June 30, 2013 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, 2013. The information presented here should be considered in conjunction with the financial statements included in this report. FINANCIAL HIGHLIGHTS Following are the financial highlights of the City for the fiscal year ended June 30, 2013. une 30, J 20132012chane g Net position113,952,363$ 111,291,473$ 2,660,890$ Change in net position2,660,890 2,414,940 245,950 Governmental activities net position71,695,875 70,359,567 1,336,308 Business-type activities net position42,256,488 40,931,906 1,324,582 Change in governmental net position1,336,308 1,242,350 93,958 Change in proprietary net position1,324,582 1,172,590 151,992 OVERVIEW OF THE FINANCIAL STATEMENTS 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 required and other supplementary information. Government-wide financial statements. The government-wide financial statements present the net position (statement of net position) and results of operations (statement of activities) of the City as a whole. 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 City, 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 position presents information on all the City of Woodburn's assets and liabilities, with the difference between the two reported as net position. Increases or decreases in net position 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." - 3 - 8 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 Woodburn include general government, public safety, highways and streets, and culture and recreation. Business- type activities are operations funded primarily through charges to external users of goods and services. Business- type activities include water and wastewater. 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, proprietary funds, and a fiduciary fund. 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 individual governmental funds. Information is presented separately for the General Fund, Street 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. 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 and wastewater 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 insurance, facility maintenance, information services, and technical and environmental 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, Sewer, Wastewater Treatment Plant (WWTP) Construction, and Water Well Development (WWD) Construction funds. The internal service funds are combined into a single column in the proprietary fund financial 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. 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. - 4 - 9 Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required and other supplementary information concerning the City of Woodburn. GOVERNMENT-WIDE FINANCIAL ANALYSIS The City of Woodburn had $167,817,413 in total assets and $53,865,049 in total liabilities, resulting in combined net position of $113,952,363 for governmental and business-type activities. The largest component of the City's net position, 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. Governmental capital assets, net of depreciation, decreased $608,292 over the prior year due primarily to depreciation in excess of current year capital asset additions. Business-type capital assets, net of depreciation decreased $869,268 over the prior year due to depreciation which offset the continuation of the wastewater treatment plant upgrade and the water line extension project. 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 $2,853,440 from the prior year due to scheduled debt repayments. Overall, the City's financial position changed by $2,660,890 (or 2%). This is due mainly to increases in revenues and decreases in expenses compared to the prior year. Statement of Net Position The following table reflects the condensed Statement of Net Position compared to the prior year. 20132012Change GovernmentalBusiness-typeGovernmentalBusiness-typeGovernmentalBusiness-type ActivitiesActivitiesTotalActivitiesActivitiesTotalActivitiesActivitiesTotal Cash and investments$17,022,290$ 23,486,532$ 40,508,822$ 15,432,365$ 23,963,357$ 39,395,722$ 1,589,925$ (476,825)$ 1,113,100 Other assets 1,822,164 686,804 2,508,968 1,743,325 908,644 2,651,969 78,839 (221,840) (143,001) Capital assets 60,068,635 64,730,987124,799,622 60,676,927 65,600,255 126,277,182 (608,292) (869,268) (1,477,560) Total Assets 78,913,089 88,904,323167,817,412 77,852,617 90,472,256 168,324,873 1,060,472 (1,567,933) (507,461) Other liabilities 671,971 680,317 1,352,288 521,350 751,030 1,272,380 150,621 (70,713) 79,908 Long-term liabilities 6,545,243 45,967,518 52,512,761 6,971,700 48,514,906 55,486,606 (426,457) (2,547,388) (2,973,845) Total Liabilities 7,217,214 46,647,835 53,865,049 7,493,050 49,265,936 56,758,986 (275,836) (2,618,101) (2,893,937) Net position: Net investment in capital assets54,361,481 31,886,659 86,248,140 54,443,478 31,042,855 85,486,333 (81,997) 843,804 761,807 Restricted 10,395,999 3,165,303 13,561,302 9,460,498 2,869,942 12,330,440 935,501 295,361 1,230,862 Unrestricted 6,938,395 7,204,526 14,142,921 6,455,591 7,293,523 13,749,114482,804 (88,997) 393,807 Total Net Position$71,695,875$ 42,256,488$113,952,363$ 70,359,567$ 41,206,320$ 111,565,887$ 1,336,308$ 1,050,168$ 2,386,476 Governmental Activities The City’s net position from governmental activities increased $1,336,308 (2%) from 2011-12 to 2012-13. - 5 - 10 Business-type Activities The City’s net position from business-type activities increased $1,324,582 (3%) from 2011-12 to 2012-13. Statement of Activities The following table reflects the condensed Statement of Activities compared to the prior year. 20132012Change Business- Business-Business- Governmental type GovernmentaltypeGovernmentype Activities Activities TotalActivitiesActivitiesTotalActivitiesActivitiesTotal Revenues Program Revenues Charges for service$ 2,129,950$ 9,785,103 11,915,053 2,321,980$ $9,535,915$ $ 57,158 249,188 $ 11,857,895 $ (192,030) Operating grants and contributions1,948,383 1,948,383 1,911,075- 1,911,075 37,308- 37,308 - Capital grants and contributions 840,242 1,131,172 522,817290,930 960,634 317,425437,817 170,538 (146,887) Total Program Revenues 4,918,57510,076,033 14,994,608 4,755,8729,973,732 14,729,604 102,301 265,004 1 62,703 General Revenues Property taxes 8,180,539 8,180,539 8,495,199- 8,495,199 (314,660)- (314,660)- Franchise taxes 1,932,484 1,932,484 1,776,101- 1,776,101 156,383- 156,383 - Intergovernmental 660,547 660,547 533,738- 533,738 126,809- 126,809 - Other 292,791 470,478 299,156177,687 373,219 (6,365)74,063 97,259 103,624 Total General Revenues 11,066,361 177,687 11,244,048 11,104,194 74,063 11,178,257 (37,833) 103,624 65,791 Total Revenues 15,984,936 10,253,720 26,238,656 15,860,066 10,047,795 25,907,861 124,870 205,925 330,795 Expenses (Net of Indirect Expenses) General government 2,411,067 2,411,067 2,425,859- 2,425,859 (14,792)- (14,792)- Public safety 6,389,207 6,389,207 6,423,707- 6,423,707 (34,500)- (34,500)- Highways and streets 2,663,020 2,663,020 2,202,753- 2,202,753 460,267- 460,267 - Culture and recreation 3,270,803 3,270,803 4,019,379- 4,019,379 (748,576)- (748,576)- Interest 248,109 248,109 257,018- 257,018 (8,909)- (8,909)- Water 2,882,056- 2,882,056 2,901,104- 2,901,104 (19,048)- (19,048) Sewer 5,713,504- 5,713,504 5,263,101- 5,263,101 450,403- 450,403 Total Expenses 14,982,206 8,595,560 23,577,766 15,328,716 8,164,205 23,492,921 (346,510) 431,355 84,845 Changes in Net Position Before Transfers 1,598,190 1,126,810 1,002,730 1,658,160 2,660,890 531,350 1,883,590 2,414,940 4 71,380 Transfers 333,578 (333,578) - 711,000 (711,000) - (377,422) - 377,422 1,336,308 1,324,582 2,660,890 1,242,350 1,172,590 2,414,940 93,958 1,504,232 1,598,190 Change in Net Position - - Beginning Net Position, as adjusted 2,414,940 1,172,590 70,359,567 40,931,906 111,291,473 69,117,217 39,759,316 108,876,533 1 ,242,350 nding Net Position$ 42,256,48871,695,875$ 113,952,363$ 70,359,567$ 40,931,906$ 111,291,473$ 1,336,308$ 2,676,822$ 4,013,13$ E0 Governmental Activities. Total revenues for the City of Woodburn's governmental activities were $15,984,936 for the fiscal year ended June 30, 2013. Approximately 51% of the total revenue for the governmental activities was derived from property taxes and approximately 31% of the total revenue was from program revenues. Total expenses for governmental activities were $14,982,206 and net transfers in were $333,578 resulting in a $1,336,308 increase in net position. General governmental activities accounted 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 was less than 1% of total governmental activities expenses. Business-Type Activities. Revenues of business-type activities totaled $10,253,720 for the current fiscal year. These activities generated $10,076,033 in program revenues. Approximately 95% of the total business-type activities revenue was derived from charges for services. The total expenses for business-type activities were $8,595,560 and net transfers out were $333,578 resulting in an $1,324,582 increase in net position. Business-type activities for the City of Woodburn consist of operations for water and wastewater services. - 6 - 11 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. 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, 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 was $16,173,946 of fund balance of the governmental funds, an increase of $1,438,246 from the prior year. The City's governmental funds include the General Fund, Street 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 fund balance of $3,282,440 was reported by the General Fund. The fund balance increased by $538,141from the previous year. The City of Woodburn reports two other major governmental funds, the Street Fund and the Street SDC Fund. The Street Fund had a fund balance of $2,105,613, an increase of $1,308,681 from the previous year. The Street SDC Fund had a fund balance of $5,130,650, a decrease of $80,821 from the previous year. Proprietary Funds. Net position of the proprietary funds equaled $42,256,488 at the end of the current fiscal year. The net asset increase of $1,324,582was comparable to the increase in the previous year. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended to increase the beginning fund balance by $900,000 and aquatics revenues by $20,000. The amendment also decreased police expenditures by $27,000 and increased administration, city attorney, finance, HR, aquatics and non-departmental by a total of $82,100. Actual revenues (budgetary basis), were within 2% of budgeted amounts. General Fund expenditures ended $3,172,016 below budgeted amounts primarily due to management efforts to contain costs throughout the fiscal year. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City of Woodburn's investment in capital assets for its governmental and business-type activities equaled $60,068,635 and $64,730,987 respectively, at the end of the current fiscal year, net of accumulated depreciation. This investment includes land, buildings, improvements, equipment, and infrastructure. Additional information about the City's capital assets is presented in the notes to the financial statements. Total GovernmentalPercentage ctivitiesChane Ag 20132012 2012-2013 Land$ 22,567,381$ 22,567,381 - % Construction in progress 1,465,711 1,909,356 (23.24) Equipment 5,779,416 5,690,040 1.57 Building 16,233,984 15,897,131 2.12 Infrastructure 38,154,005 37,241,093 2.45 Accumulated depreciation (24,131,862) (22,628,074) 6.65 Total$ 60,068,635$ 60,676,927 %(1.00) - 7 - 12 Total Business-typePercentage ctivitiesChane Ag 201320122012-2013 Land$ 1,783,816$ 1,783,816 - % Construction in progress 4,566,500 3,532,785 29.26 Equipment 1,972,578 1,899,873 3.83 Building 62,512,275 62,340,008 0.28 Infrastructure 28,565,883 28,315,347 0.88 Accumulated depreciation (34,670,065) (32,271,574) 7.43 Total$ 64,730,987$ 65,600,255 %(1.33) Long-term Debt . At the end of the current fiscal year, long-term debt outstanding for the governmental activities totaled $5,707,154 (excluding compensated absences payable), compared to $6,233,449 in the prior year. For the business-type activities, total long-term debt equaled $43,234,488 (excluding compensated absences payable) compared to $45,721,367 in the prior year. The decrease is due to scheduled debt repayments. Additional information about the City's long-term debt outstanding is presented in the notes to the financial statements. Governmental ActivitiesChange 201320122012-2013 Loans155,773$ 180,213$ (24,440)$ Bonds5,551,381 6,053,236 (501,855) Total$ 6,233,4495,707,154$ (526,295)$ Business-type ActivitiesChange 201320122012-2013 Revenue bonds$ 37,674,655$ 39,810,720$ (2,136,065) Loans 5,559,833 5,910,647 (350,814) Total$ 43,234,488$ 45,721,367$ (2,486,879) 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 County 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. - 8 - 13 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. - 9 - 14 BASIC FINANCIAL STATEMENTS 15 CITY OF WOODBURN, OREGON STATEMENT OF NET POSITION JUNE 30, 2013 GovernmentalBusiness-type ActivitiesActivitiesTotals ASSETS Cash and investments17,022,290$ 23,486,532$ 40,508,822$ 623,846 Accounts receivable497,615 1,121,461 Property taxes receivable676,014 - 676,014 Assessment liens receivable710,023 - 710,023 - 1,470 Prepaid expenses1,470 Internal balances(62,958) 62,958 - Non-depreciable capital assets24,033,092 6,350,314 30,383,406 58,380,673 94,416,216 Other capital assets, net of depreciation36,035,543 Total Assets 88,904,32378,913,089 167,817,412 IABILITIES L 113,696 Accounts payable482,264 595,960 Accrued payroll liabilities153,288 - 153,288 100,735 115,735 Deposits payable15,000 465,886 Accrued interest payable21,419 487,305 Noncurrent liabilities: Due within one year: 2,913,471 3,473,643 Long-term debt560,172 Due in more than one year: Long-term debt5,146,982 42,945,949 48,092,931 108,098 946,187 Accrued compensated absenses838,089 Total Liabilities 46,647,8357,217,214 53,865,049 NET POSITION Net investment in capital assets54,361,481 31,886,659 86,248,140 Restricted for: Debt service1,915,504 1,934,172 3,849,676 Culture and recreation220,923 - 220,923 Construction8,259,572 1,231,131 9,490,703 Unrestricted 6,938,395 7,204,526 14,142,921 Total Net Position$ 42,256,48871,695,875$ 113,952,363$ The accompanying notes are an integral part of the financial statements. - 10 - 16 CITY OF WOODBURN, OREGON STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2013 rogram Revenue Ps ees, FineOperatingCapital Fs Grants andGrants and and Charge s xpensefor ServiceContributionContribution Essss FUNCTIONS/PROGRAM S Governmental activities: General government2,411,067$ 733,090$ -$ 640$ Public safety6,389,207 715,743 58,699 - Highways and streets2,663,020 106,604 1,317,468 736,242 Culture and recreation3,270,803 574,513 572,216 103,360 Interest on long-term debt248,109 - - - Total Governmental activities 2,129,95014,982,206 1,948,383 840,242 Business-type activities: Water2,882,056 3,236,888 - 92,991 Sewer5,713,504 6,548,215 - 197,939 Total Business-type activities 9,785,1038,595,560 - 290,930 Total Activities$ 11,915,05323,577,766$ 1,948,383$ 1,131,172$ General Revenues: Property taxes Franchise taxes Intergovernmental Proceeds from disposition of assets Unrestricted investment earnings Miscellaneous Total General Revenues Transfer s Change in net position Net Position - beginning of year, as originally stated rior period adjustmen Pt Net Position - beginning of year, as adjusted Net Position - end of year 17 Net (Expenses) Revenues and Changes in Net Position Governmentalusiness-typ Be ActivitieActivitiesTotal ss $ -(1,677,337)$ (1,677,337)$ -(5,614,765) (5,614,765) -(502,706) (502,706) -(2,020,714) (2,020,714) -(248,109) (248,109) -(10,063,631) (10,063,631) 447,823- 447,823 1,032,650- 1,032,650 1,480,473- 1,480,473 (10,063,631) 1,480,473 (8,583,158) 8,180,539 8,180,539- 1,932,484 1,932,484- 660,547 660,547- - 1,300 1,300 122,672 109,942 232,614 170,119 66,445 236,564 11,066,361 177,687 11,244,048 333,578 (333,578) - 1,336,308 1,324,582 2,660,890 70,359,56741,206,320111,565,887 (274,414)- (274,414) 70,359,56740,931,906111,291,473 $ 42,256,48871,695,875$ 113,952,363$ The accompanying notes are an integral part of the financial statements. - 11 - 18 CITY OF WOODBURN, OREGON BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2013 Special RevenueCapital Projects GeneralStreetStreet SDC SSETS A Cash and investments3,512,663$ 2,015,921$ 5,187,527$ Accounts and notes receivable 142,800214,598 - Property taxes receivable -582,016 - Assessment liens receivable- - 28,256 Prepaid expenses1,470 - - Due from other funds- - 186,718 Total Assets$ 4,310,747$ 2,158,721$ 5,402,501 LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES iabilities: L Accounts payable94,006$ 38,108$ 56,877$ Accrued payroll and payroll liabilities153,288 - - Deposits payable- 15,000 - Due to other funds249,676 - - Total Liabilities 496,970 53,108 56,877 eferred Inflows: D Deferred revenue531,337 - 28,256 Fund Balance: Non-spendable1,470 - - Restricted for: Debt service- - - Constructio 2,105,613- 5,317,368 n Culture and recreation- - - Committed to: Capital outla -- - y Public works- - - Culture and recreation- - - Planning and buildin -- - g Unassigned3,280,970 - - Total Fund Balance 3,282,440 2,105,613 5,317,368 Total Liabilities, Deferred Inflows, and Fund Balance$ 4,310,747$ 2,158,721$ 5,402,501 19 Other Governmental FundsTotal $ 5,619,290$ 16,335,401 756,406 1,113,804 93,998 676,014 65,578 93,834 - 1,470 - 186,718 $ 6,535,272$ 18,407,241 $ 254,643$ 443,634 - 153,288 - 15,000 - 249,676 254,643 861,598 812,104 1,371,697 - 1,470 1,829,639 1,829,639 732,536 8,155,517 220,923 220,923 770,588 770,588 1,568,763 1,568,763 8,057 8,057 338,019 338,019 3,280,970- 5,468,525 16,173,946 $ 6,535,272$ 18,407,241 The accompanying notes are an integral part of the financial statements. - 12 - 20 CITY OF WOODBURN, OREGON RECONCILIATION OF BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2013 RECONCILIATION TO THE STATEMENT OF NET POSITION Fund Balances$ 16,173,946 The Statement of Net Position reports receivables at their net realizable value. However, receivables not available to pay for current period expenditures are deferred in governmental funds.1,371,697 Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Position at their net depreciable value. Cost84,200,497 Accumulated depreciation(24,131,862) All liabilities are reported in the Statement of Net Position. However, if they are not due and payable in the current period, they are not recorded in governmental funds. Compensated absenses payable (731,643) Accrued interest payable (21,419) Long-term debt (5,707,154) Internal service funds are proprietary-type funds and not reported with governmental funds. However, because internal service funds primarily benefit governmental activities, their assets, liabilities and net assets are reported along with governmental activities in the Statement of Net Position. 541,813 Net Position of Governmental Activities$ 71,695,875 The accompanying notes are an integral part of the financial statements. - 13 - 21 CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Special RevenueCapital Projects General FundStreetStreet SDC EVENUES R Taxes and assessments7,394,665$ 106,537$ -$ Licenses and permits1,412,286 67 411,527 Charges for services598,423 353,380 - Intergovernmenta 1,317,468820,843 - l Fines and forfeitures589,574 - - Miscellaneous124,256 21,535 25,112 Total Revenues 1,798,98710,940,047 436,639 XPENDITURES E Current -911,652 - General governmen t Public safet -6,328,417 - y Highways and streets- 990,694 - Culture and recreation2,868,043 - - Debt Service Principa -- 24,440 l Interest- - 9,079 -- 488,371 Capital outla y Total Expenditures 990,69410,108,112 521,890 REVENUES OVER (UNDER) EXPENDITURES 808,293831,935 (85,251) OTHER FINANCING SOURCES (USES) Transfers in- 700,218 4,430 Transfers out(293,794) (199,830) - Total Other Financing Sources (Uses) 500,388(293,794) 4,430 NET CHANGE IN FUND BALANC 1,308,681538,141 (80,821) E FUND BALANCE, beginning of year 796,9322,744,299 5,398,189 FUND BALANCE, end oear $ 2,105,6133,282,440$ 5,317,368$ fy 22 Other Governmental FundsTotal $ 1,125,450$ 8,626,652 655,815 2,479,695 56,565 1,008,368 816,640 2,954,951 - 589,574 145,633 316,536 2,800,103 15,975,776 625,035 1,536,687 6,328,417- 62 990,756 721,394 3,589,437 501,856 526,296 240,158 249,237 927,019 1,415,390 3,015,524 14,636,220 (215,421) 1,339,556 574,884 1,279,532 (687,218) (1,180,842) (112,334) 98,690 (327,755) 1,438,246 5,796,280 14,735,700 $ 5,468,525$ 16,173,946 The accompanying notes are an integral part of the financial statements. - 14 - 23 CITY OF WOODBURN, OREGON RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2013 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES $1,438,246 Net Change in Fund Balances - Total Governmental Funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds defer revenues that do not provide current financial resources. However, the Statement of Activities recognizes such revenues at their net realizable value when earned, regardless of when received.(58,690) Governmental funds do not report expenditures for unpaid compensated absences, unpaid payroll, interest expense or arbitrage since they do not require the use of current financial resources. However, the Statement of Activities reports such expenses when incurred, regardless of when settlement ultimately occurs. Accrued compensated absences (85,956) Accrued interest payable 1,128 Capital outlays are reported as expenditures in governmental funds. However, the Statement of Activities allocates the cost of capital outlay over their estimated useful lives as depreciation expense. Capital outlay expenditures911,436 Depreciation(1,519,729) Proceeds from the issuance of long-term debt provide current financial resources to governmental funds and are reported as revenues. In the same way, repayments of long-term debt use current financial resources and are reported as expenditures in governmental funds. However, neither the receipt of debt proceeds nor the payment of debt principal affect the Statement of Activities, but are reported as increases and decreases in noncurrent liabilities in the Statement of Net Position. Debt principal paid526,295 Net income of internal service funds 123,578 Change in Net Position of Governmental Activities$1,336,308 The accompanying notes are an integral part of the financial statements. - 15 - 24 CITY OF WOODBURN, OREGON STATEMENT OF FUND NET POSITION - PROPRIETARY FUNDS JUNE 30, 2013 WWTP WaterSewerConstruction ASSETS Current Assets Cash and investments$ 1,404,147$ 3,843,054$ 13,889,802 Accounts receivable 192,715 378,977 2,876 Due from other funds - - 53,000 Total Current Assets 1,596,862 4,222,031 13,945,678 Noncurrent Assets Nondepreciable capital assets 158,444 1,790,755 3,586,102 Other capital assets, net of depreciation 10,219,690 47,406,542 196,229 Total Noncurrent Assets 10,378,134 49,197,297 3,782,331 Total Assets 11,974,996 53,419,328 17,728,009 LIABILITIES Current Liabilities Accounts payable 28,859 38,477 38,404 Deposits payable 100,735 - - Accrued interest payable 294,178 171,708 - Due to other funds 61,880 61,880 - Current portion of long-term liabilities Long-term debt 648,318 2,265,153 - Total Current Liabilities 1,133,970 2,537,218 38,404 Noncurrent Liabilities Long-term debt 11,159,613 31,786,336 - Accrued compensated absences 39,560 68,538 - Total Noncurrent Liabilities 11,199,173 31,854,874 - Total Liabilities 12,333,143 34,392,092 38,404 NET POSITION: Net investment in capital assets (1,429,797) 28,160,900 3,782,331 Restricted for: Debt service 754,000 1,180,172 - Construction - - - Unrestricted 317,650 (10,313,836) 13,907,274 Total Net Position$ (358,147)$ 19,027,236$ 17,689,605 25 WWD Other Business-Total Internal Constructiontype FundsTotalService Funds $ 1,190,6353,158,894$ 23,486,532$ 686,889$ 40,4968,782 623,846 - -186,718 239,718 - 1,231,1313,354,394 24,350,096 686,889 -815,013 6,350,314 - -558,212 58,380,673 - -1,373,225 64,730,987 - 1,231,1314,727,619 89,081,083 686,889 -7,956 113,696 38,630 -- 100,735 - -- 465,886 - -53,000 176,760 - -- 2,913,471 - -60,956 3,770,548 38,630 -- 42,945,949 - -- 108,098 106,446 -- 43,054,047 106,446 -60,956 46,824,595 145,076 -1,373,225 31,886,659 - - 1,934,172- - 1,231,131- 1,231,131 - 3,293,438 7,204,526- 541,813 $ 4,666,663$ 1,231,131$ 42,256,488$ 541,813 The accompanying notes are an integral part of the financial statements. - 16 - 26 CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 WWTP WaterSewerConstruction OPERATING REVENUES Licenses and permits$ -$ -$ - Charges for services 3,236,888 6,548,215 - Miscellaneous58,454 9,291 - Total Operating Revenues 6,557,5063,295,342 - OPERATING EXPENSES 1,861,9281,287,039 - Personal services 853,746617,423 35,968 Materials and services 1,903,291415,388 48,743 Depreciation 4,618,9652,319,850 84,711 Total Operating Expenses OPERATING INCOME (LOSS) 1,938,541975,492 (84,711) NONOPERATING REVENUE S (EXPENSES) Investment revenue 3,827 10,604 73,974 Interest expense (1,078,905)(521,963) - Bond premium amortization - 69,077 - Total Nonoperating Revenues (999,224)(518,136) 73,974 (Expenses) NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 939,317457,356 (10,737) Capital contributions - - - Transfers in 2,947,664824,000 - Non-cash transfers in - - 171,033 Transfers out (377,913)(102,797) (2,892,724) Non-cash transfers out - (98,331) - CHANGE IN NET POSITIO 3,410,7371,178,559 (2,732,428) N NET POSITION, Beginning of year 15,890,913(1,536,706) 20,422,033 Prior period adjustment (274,414)- - NET POSITION, Beginning of year, as 15,616,499(1,536,706) 20,422,033 restated NET POSITION, End of year$ 19,027,236(358,147)$ 17,689,605$ 27 WWD Other Enterprise Total Internal ConstructionFundsTotalsService Funds $ - $ --$ 19,628$ - 9,785,103- 2,281,719 - 67,745- 2,640 -- 2,303,9879,852,848 - 3,148,967- 1,348,443 9,175 1,516,312- 1,141,575 31,068 2,398,490- - -40,243 2,490,0187,063,769 (40,243) 2,789,079- (186,031) 17,106 109,9424,431 2,019 - (1,600,868)- - - 69,077- - 4,43117,106 2,019(1,421,849) (23,137) 1,367,2304,431 (184,012) - 290,930290,930 - 4,430 3,776,094- 362,322 - 171,033- - (754,000) (4,182,374)(54,940) (54,732) - (98,331)- - 240,421(772,707) 123,5781,324,582 5,439,370 41,206,320990,710 418,235 - (274,414)- - 990,7105,439,370 40,931,906 418,235 $ 1,231,1314,666,663$ 42,256,488$ 541,813$ The accompanying notes are an integral part of the financial statements. - 17 - 28 CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 Waterewer S CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers3,234,419$ 6,358,493$ Paid to suppliers(610,693) (862,205) Paid to employees(1,287,000) (1,853,399) Net Cash Provided by (Used in) Operating Activities 3,642,8891,336,726 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in824,0002,947,664 Transfers out(115,836)(391,123) Net Cash Provided by (Used in) Non-Capital Financing Activities708,1642,556,541 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets-- Proceeds from disposal of capital assets1,300- Principal paid on loans and bonds payable(621,879)(1,865,000) System development revenue-- Interest paid(536,115)(1,085,662) Net Cash Provided by (Used in) Capital and Related Financing Activities(1,156,694)(2,950,662) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments3,82710,605 Increase (Decrease) in Cash and Investments892,0233,259,373 CASH AND INVESTMENTS, Beginning of year 512,124583,681 CASH AND INVESTMENTS, End of year $1,404,147$3,843,054 29 WWTPWWDNonmajorTotal Internal ConstructionConstructionundsTotalservice Funds FS $ 62,190183,308$ -$ 9,838,410$ 2,307,987$ (1,218)(98,749) (514) (1,573,379) (1,242,241) -- - (3,140,399) (1,334,561) 60,97284,559 (514) 5,124,632 (268,815) 39,221- - 3,810,885 362,322 (2,892,724)(754,000)(55,161)(4,208,844)(56,649) (2,892,724)(714,779)(55,161)(397,959)305,673 (812,696)(643,823) (1,456,519)-- ---1,300- -- (2,486,879)-- - 250,434-250,434- -- (1,621,777)-- (812,696)(643,823)250,434(5,313,441)- 17,1064,431109,9432,019 73,974 (3,546,887)(1,280,524)199,190(476,825)38,877 17,436,6894,439,418991,44523,963,357648,012 $13,889,8023,158,894$1,190,635$23,486,532$ 686,889 The accompanying notes are an integral part of the financial statements. - 18 - 30 CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS (Continued) YEAR ENDED JUNE 30, 2013 Waterewer S RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIE S Operating income (loss)$974,192$1,938,541 Depreciation415,3881,903,291 Change in assets and liabilities: Accounts receivable(66,887)(199,013) Accounts payable and accrued liabilities6,730(8,459) Customer deposits7,264- Compensated absences payable398,529 Net Cash Provided by (Used in) Operating Activities$1,336,726$3,642,889 Noncash Transactions Transfer of capital assets$ (98,331)-$ 31 WWTPWWDNonmajorTotal Internal ConstructionConstructionundsTotalservice Funds FS $ (40,243)(84,711)$ -$ 2,787,779$ (186,031)$ 31,06848,743 - 2,398,490 - 62,190183,308 - (20,402) 4,000 -(62,781) (514) (65,024) (100,666) -- - 7,264 - -- - 8,568 13,882 $ 60,97284,559$ (514)$ 5,124,632$ (268,815)$ $ -171,033$ -$ 72,702$ -$ The accompanying notes are an integral part of the financial statements. - 19 - 32 CITY OF WOODBURN, OREGON STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2013 Pension Trust ASSETS Cash and investments$ 8 2,237 LIABILITIES Due to others - NET POSITION Held in trust for benefits and other purposes82,237$ The accompanying notes are an integral part of the financial statements. - 20 - 33 CITY OF WOODBURN, OREGON STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED JUNE 30, 2013 Pension Trust ADDITIONS Earnings$ 8,492 DEDUCTIONS (399,848) CHANGE IN NET POSITION (391,356) NET POSITION, Beginning of year 473,593 NET POSITION, end of year $ 82,237 The accompanying notes are an integral part of the financial statements. - 21 - 34 NOTES TO BASIC FINANCIAL STATEMENTS 35 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING 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, 2013. 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 Position and the Statement of Activities. - 22 - 36 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 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 position and the statement of fund net position. The increases and decreases in those net position are presented in the government-wide statement of activities and in the proprietary fund statement of revenues, expenses and changes in fund net position. 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. 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 position, 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. Fund Balance In the fund financial statements, the fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Although not a major impact on the financial statements, Governmental Fund type fund balances are now reported in the following classifications. - 23 - 37 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Balance (Continued) Fund balance is reported as nonspendable when the resources cannot be spent because they are either in a nonspendable form or legally or contractually required to be maintained intact. Resources in nonspendable form include inventories, prepaids and deposits, and assets held for resale. Fund balance is reported as restricted when the constraints placed on the use of resources are either: (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Fund balance is reported as committed when the City Council takes formal action that places specific constraints on how the resources may be used. The City Council can modify or rescind the commitment at any time through taking a similar formal action. Resources that are constrained by the City’s intent to use them for a specific purpose, but are neither restricted nor committed, are reported as assigned fund balance. Intent is expressed when the City Council approves which resources should be “reserved” during the adoption of the annual budget. The City’s Finance Director uses that information to determine whether those resources should be classified as assigned or unassigned for presentation in the City’s Annual Financial Report. Unassigned fund balance is the residual classification for the General Fund. This classification represents fund balance that has not been restricted, committed, or assigned within the General Fund. This classification is also used to report any negative fund balance amounts in other governmental funds. The City Council has approved a policy to maintain an ending fund balance in the general fund, in order to provide stable services and employment to offset cyclical variations in revenues and expenditures. The targeted floor for the ending balance will be at ten percent of annual operating revenue, as shown as a minimum fund balance in the General Fund. The City Council is the highest level decision making authority and may take formal action by vote or resolution to establish, modify, or rescind a fund balance commitment. 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. - 24 - 38 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Fund Financial Statements Governmental 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 (30 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 Marion 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 (30 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. 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. Nonmajor funds are combined in a column in the fund financial statements and detailed in the combining section. The City reports the following major governmental funds: General Fund Street Fund Street SDC Fund - 25 - 39 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Fund Financial Statements (Continued) The City reports the following major proprietary funds: Water Fund Sewer Fund WWTP Construction Fund WWD Construction 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, 2013. 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. Inventory Inventory in the proprietary funds is stated at cost (first-in, first-out basis) and is charged to expense as used. - 26 - 40 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 consists of water 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 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. - 27 - 41 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 position. 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. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City has no items that qualify for reporting in this category. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only one type of item that qualifies for reporting in this category. It arises only under a modified accrual basis of accounting. Accordingly, the item, deferred revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 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 position. The accrued payables in the Statement of Net Position are 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. For budgetary purposes, interfund loan transactions are reported as interfund transfers. 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 Council. After budget approval, the City Council may approve supplemental appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. Management may not amend the budget. A supplemental budget requires hearings before the public, publications in newspapers and approval by the City Council. - 28 - 42 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 ORGANIZATION AND 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. Special Revenue Funds Street 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. Transit Fund – This fund accounts for amounts held to be used for weekdaytransportation services. 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. This fund was closed as of June 30, 2013. 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 the federal grant for the Retired Seniors Volunteer Program. 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). 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. This fund was closed as of June 30, 2013. 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. Lavelle Black Trust Fund – This fund accounts for the donations received to continue the police dog program. Capital Projects Funds Street SDC Fund - This fund accounts for the collection and spending of street SDC’s. General 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. - 29 - 43 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 ORGANIZATION AND OPERATION (Continued) Governmental Fund Types (Continued) Capital Projects Funds (Continued) 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. Storm SDC Fund - This fund accounts for the collection and spending of storm SDC’s. Equipment Replacement Fund - This fund accounts for transfers from other funds set aside for future equipment purchases. Police Construction Fund – Proceeds from the 2005 GO bonds were used to construct the City’s police facility. The project was completed in fiscal year 2011-12. The fund was closed out in the prior year but had an adopted budget in 2012-13. Debt Service Funds GO Debt Fund - This fund accounts for debt service on the City’s 2005 GO bond. Property taxes are the major source of revenue. Urban Renewal 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 seven enterprise funds. Three funds are related to water, and five are related to sewer. The specific funds and their purposes are as follows. 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. 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. WWD Construction Fund - This fund accounts for water system capital improvement projects and the retirement of associated debt. 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. - 30 - 44 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 ORGANIZATION AND OPERATION (Continued) Proprietary Fund Types (Continued) Enterprise Funds (Continued) Surfacewater 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.This fund was closed as of June 30, 2013. Internal Service Funds The City has four 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. 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. This fund was closed as of June 30, 2013. Fiduciary Fund The City has one fiduciary fund. The City's pension trust fund holds assets to provide retirement benefits to certain City employees. - 31 - 45 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 CASH AND INVESTMENTS 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 Position as part of “cash and investments.” CarryingFair ValueValue Cash Deposits with financial institutions$600,079 $600,079 Cash on hand2,3102,310 nvestments I Local Government Investment Pool39,906,433 39,906,433 Assets held for pension benefits82,23782,237 $40,591,059$40,591,059 Cash is reported in the financial statements as follows: Governmental funds$16,335,400 Internal Service funds (included in governmental activities)686,889 Enterprise funds23,486,533 Fiduciary funds82,237 $40,591,059 Deposits The book balance of the City’s bank deposits (checking accounts) was $600,079and the bank balance was $866,188 at year end. The difference is due to transactions in process. Bank deposits are secured to legal limits by federal deposit insurance. The remaining amount is secured in accordance with ORS 295 under a collateral program administered by the Oregon State Treasurer. 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, 2013, 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. - 32 - 46 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 CASH AND INVESTMENTS (Continued) 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 unlimited insurance for the City’s deposits with financial institutions for the aggregate of all demand deposit and money market accounts and up to $250,000 for the aggregate of all savings and time deposit accounts at each institution. Deposits in excess of FDIC coverage are with institutions participating in the Oregon Public Funds Collateralization Program (PFCP). 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, 2013, $616,188 of the City’s bank balances were exposed to custodial credit risk as part of the Public Funds Collateralization Program. 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. 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 Council. The LGIP is an open-ended no-load 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. - 33 - 47 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 CAPITAL ASSETS The summary of capital assets for the business-type activities for the year ended June 30, 2013 is as follows: BalancesBalances July 1,June 30, 2012AdditionsRetirements2013 Nondepreciable assets Land (nondepreciable)$ 1,783,816$ -$ 1,783,816-$ Construction in progress 3,532,784 1,451,233 (417,519) 4,566,498 Subtotal, nondepreciable assets5,316,600 1,451,233 (417,519) 6,350,314 Depreciable assets Buildings62,340,008 172,267 62,512,275- Water and sewer systems28,315,347 250,536 28,565,883- Equipment 1,899,873 72,705 1,972,578- Subtotal, depreciable assets92,555,228 495,508 93,050,736- Accumulated depreciation Buildings and improvements(21,184,681) (1,699,447) (22,884,128)- Water and sewer systems(9,827,891) (571,315) (10,399,206)- Equipment(1,259,000) (127,729) (1,386,729)- Total accumulated depreciation(32,271,572) (2,398,491) (34,670,063)- Total depreciable assets, net60,283,656 (1,902,983) 58,380,673- Net capital assets$ (451,750)65,600,256$ $ (417,519)$64,730,987 Depreciation expense was allocated as follows: Water funds446,456$ Sewer funds 1,952,035 $ 2,398,491 - 34 - 48 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 CAPITAL ASSETS (Continued) The changes in the capital assets for governmental activities for the year ended June 30, 2013 are as follows: BalancesBalances July 1,June 30, 2012AdditionsRetirements2013 Nondepreciable assets Land (nondepreciable)$ -22,567,381$ $ 22,567,381-$ Construction in progress 1,909,356 806,120(1,249,765) 1,465,711 Subtotal, nondepreciable assets24,476,737 806,120(1,249,765) 24,033,092 Depreciable assets Buildings15,897,131 336,853 16,233,984- Equipment 5,690,040 105,317 (15,941) 5,779,416 Infrastructure37,241,093 912,912 38,154,005- Subtotal, depreciable assets58,828,264 1,355,082 (15,941) 60,167,405 Accumulated depreciation Buildings(4,804,678) (456,227) (5,260,905)- Equipment(4,213,572) (300,421) 15,941 (4,498,052) Infrastructure(13,609,824) (763,081) (14,372,905)- Total accumulated depreciation(22,628,074) (1,519,729) (24,131,862)15,941 Total depreciable assets, net36,200,190 (164,647) 36,035,543- Net capital assets$ 641,47360,676,927$ $ (1,249,765)$60,068,635 * As adjusted Depreciation expense was allocated as follows: General government471,116$ Public safety60,789 Highways and streets820,654 Culture and recreation167,170 $ 1,519,729 - 35 - 49 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 LONG-TERM DEBT Long-term debt transactions for the year were as follows: OutstandingOutstandingDue July 1,RedeemedJune 30,Within 2012IssuedDuring Year2013One Year Governmental Activities: Series 2005 general obligation bonds due in annual installments with principal and interest varying annually5,$ 365,000$ (300,000)-$$5,065,000$ 320,000 1999 Oregon EDD Loan due in annual installments of $38,319 with interest at 5.01%.180,213 (24,440)-155,77329,663 2005 URA bonds due in quarterly installments of $56,933 with interest at 4.22%.688,236 (201,855)-486,381210,509 6,233,449 (526,295)-5,707,154560,172 Accrued compensated absences738,25199,838 838,089-- $6,971,700$99,838$(526,295)$6,545,243$ 560,172 OutstandingMatured/OutstandingDue July 1,RedeemedJune 30,Within 2012IssuedDuring Year2013One Year Business-type Activities: Series 2003 Water bond paid over 25 years; interest at various rates$ 6,519,163$ (271,065)-$$6,248,098$ 282,734 2005 Oregon EDD due in annual installments including interest at 4.21%2,955,319 (175,407)-2,779,912182,792 2005 SDWR due in annual installments including interest at 4.21%2,955,328 (175,407)-2,779,921182,792 2011 Sewer Revenue Bonds paid over 20 years; interest at various rates33,291,557 (1,865,000)-31,426,5572,265,153 45,721,367 (2,486,879)-43,234,4882,913,471 2011 Sewer Revenue Bond premium2,694,009 (69,077)-2,624,932- Accrued compensated absences99,5308,568 108,098-- $48,514,906$8,568$(2,555,956)$45,967,518$2,913,471 - 36 - 50 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 LONG-TERM DEBT (Continued) Future maturities of long-term debt are as follows: Governmental Activities Fiscal Year ndin Eg rincipalnteresTotal June 30, PIt 2014560,172$ 228,861$ 789,033$ 2015584,429 206,832 791,261 2016436,479 185,340 621,819 2017400,399 169,937 570,336 2018420,675 153,956 574,631 2019-232,240,000511,7812,751,781 2024-251,065,00068,1661,133,166 $5,707,154$7,232,027 $ 1 ,524,873 Business-type Activities Fiscal Year ndin Eg June 30,rincipalnteresTotal PIt 20142,913,471$4,469,339 $ $ 1,555,868 20153,425,5224,883,411 1,457,889 20163,177,2294,536,160 1,358,931 20173,330,9664,689,909 1,358,943 20183,921,9355,045,001 1,123,066 2019-2321,975,2115,560,69527,535,906 2024-283,769,445607,0724,376,517 2029-31720,70939,803 760,512 43,234,488$ $ $ 13,062,26756,296,755 - 37 - 51 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 DEFINED BENEFIT PENSION PLAN – 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. Membership of the plan consisted of two inactive members at July 1, 2013, 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, 2013. 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% The Plan had an unfunded actuarial liability of $166,205 at June 30, 2013. Subsequent to year end, the Plan was funded. PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) Plan Description The City contributes to two pension plans administered by the Oregon Public Employees Retirement System (PERS). The Oregon Public Employees Retirement Fund (OPERF) applies to the City’s contribution for qualifying employees who were hired before August 29, 2003, and is a cost-sharing multiple-employer defined benefit pension plan. The City participates in the state and local government rate pool (SLGRP). The Oregon Public Service Retirement Plan (OPSRP) is a hybrid successor plan to the OPERF and consists of two programs: The Pension Program, the defined benefit portion of the plan, applies to qualifying City employees hired after - 38 - 52 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) (Continued) Plan Description (Continued) August 29, 2003, and to inactive employees who return to employment following a six-month or greater break in service. Benefits are calculated by a formula for members who attain normal retirement age. The formula takes into account final average salary and years of service. Beginning January 1, 2004, all PERS member contributions go into the Individual Account Program (IAP), the defined contribution portion of the plan. PERS members retain their existing PERS accounts, but any future member contributions are deposited into the member’s IAP, not the member’s PERS account. Both PERS plans provide retirement and disability benefits, post-employment healthcare benefits, annual cost-of- living adjustments, and death benefits to plan members and beneficiaries. PERS is administered under Oregon Revised Statute Chapter 238, which establishes the Public Employees Retirement Board as the governing body of PERS. PERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to PERS, PO Box 23700, Tigard, OR, 97281- 3700 or by calling 503-598-7377. Funding Policy Members of PERS are required to contribute 6.00% of their salary covered under the plan, which is invested in the OPSRP Individual Account Program. The City is required by ORS 238.225 to contribute at an actuarially determined rate for the qualifying employees under the OPERF plan, and a general service rate and a police/fire rate for the qualifying employees under the OPSRP plan. The OPERF and the OPSRP rates in effect for the year ended June 30, 2013 were 13.23%, 9.35% and 12.06% respectively. The contribution requirements for plan members are established by ORS Chapter 238 and may be amended by an act of the Oregon Legislature. Annual Pension Cost The City’s contributions to PERS for the years ending June 30, 2011, 2012, and 2013 were $1,145,109, $1,515,526, and $1,500,370, respectively, which equaled the required contribution for the year. DEFINED CONTRIBUTION PENSION PLAN The City sponsors a defined contribution pension plan administered by ICMA Retirement Corp. to provide retirement benefits for the City Attorney. The plan provisions and contribution requirements are established and amended by the City Council. The City has established a contribution rate of 7 percent of covered salary. The City contributed $8,424 to the plan for the year ended June 30, 2013. - 39 - 53 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 TRANSFERS Transfers InTransfers Out General Fund-$ 339,656$ Transit150,821 - Search and Seizure7,063 - Street700,218 199,830 Local Gas Tax- 480,218 General Construction207,000 - Park SDC- 207,000 Street SDC39,221 - Equipment Replacement -210,000 WWTP Construction- 2,892,724 WWD Construction39,221 754,000 Water824,000 114,657 Sewer2,947,664 389,773 Storm- 54,940 Technical & Environmental Services379,717 5,000 Building Maintenance- 67,127 $ 5,504,925$ 5,504,925 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. INTERFUND LOANS As of June 30, 2013, the WWD Construction Fund owed the WWTP Construction Fund $53,000. The General Fund owed $249,675, and the Water and Sewer Funds each owed $61,880 for a combined total of $426,436, which $186,718 was owed to the Street SDC Fund and $186,718 to the WWD Construction Fund. No specific repayment schedule has been determined. BEGINNING BALANCE ADJUSTMENTS Beginning balance adjustments have been recorded on the budgetary basis to reflect the correction for interfund loan balances. Additionally, the beginning balance of the Sewer Fund has been reduced by $274,414 to reflect the implementation of GASB #65. The amount represents the unamortized bond issue costs as of June 30, 2012. - 40 - 54 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 EXPENDITURES IN EXCESS OF APPROPRIATIONS The following funds had expenditures in excess of appropriations: BudgetActualVariance General Fund Administration171,108$ (2,446) $ $ 173,554 City Recorder 48,380 (683) 4 9,063 Building Personal services 234,522 234,897 (375) Water Personal services 1,283,761 (3,239) 1,287,000 Sewer Personal services 1,835,229 (18,169) 1,853,398 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. NEW PRONOUNCEMENTS GASB Statement No. 61 “The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34.” This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. This Statement also amends the criteria for reporting component units as if they were part of the primary government. The statement was implemented in the current year. GASB Statement No. 62 “Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements.” The objective of this Statement is to incorporate into GASB's authoritative literature certain accounting and financial reporting guidance that were issued on or before November 30, 1989, which do not conflict with or contradict GASB pronouncements. The statement was implemented in the current year. GASB Statement No. 63 “Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.” The statement provides guidance for reporting deferred outflows of resources, deferred inflows of resources, and net position in a statement of financial position. The statement was implemented in the current year. - 41 - 55 CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 NEW PRONOUNCEMENTS (Continued) GASB Statement No. 65 “Items Previously Reported as Assets and Liabilities.” The statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. The statement is effective for fiscal years beginning after December 15, 2012. The city has chosen to early adopt this statement. The City will implement new GASB pronouncements no later than the required fiscal year. Management has not determined the effect on the financial statements from implementing any of the pronouncements. GASB Statement No. 68 “Accounting and Reporting for Pension Plans—an amendment of GASB Statement No. 27.” The statement establishes accounting and financial reporting requirements related to pensions provided by governments. The statement is effective for fiscal years beginning after June 15, 2014. GASB Statement No. 69 “Government Combinations and Disposals of Government Operations.” The statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. The statement is effective for fiscal years beginning after December 15, 2013. GASB Statement No. 70 “Accounting and Financial Reporting for Non-exchange Financial Guarantees.” The objective of the statement is to improve accounting and financial reporting by State and local governments that extend and receive non-exchange financial guarantees. The statement is effective for fiscal years beginning after June 15, 2013. SUBSEQUENT EVENTS Management has evaluated subsequent events through November 14, 2013, 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. - 42 - 56 REQUIRED SUPPLEMENTARY INFORMATION 57 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND (BUDGETARY BASIS, NON-GAAP) YEAR ENDED JUNE 30, 2013 udet Amounts Bg OriinalinalActualVariance gF EVENUES R Taxes and assessments$ 8,021,600$ 8,021,600$ 7,394,665$ (626,935) Licenses and permits 97,000 97,000 137,160 40,160 Franchise fees 1,107,500 1,107,500 1,275,126 167,626 Charges for services 527,000 547,000 598,423 51,423 Intergovernmental 657,500 657,500 820,843 163,343 Fines and forfeitures 603,400 603,400 589,574 (13,826) Miscellaneous 108,500 108,500 124,256 15,756 Total Revenues 11,122,500 11,142,500 10,940,047 (202,453) XPENDITURES E Council and Mayor 36,261 36,261 34,676 1,585 Administration 164,608 171,108 173,554 (2,446) City Recorder 48,380 48,380 49,063 (683) City Attorney 137,798 139,998 127,090 12,908 Finance 287,550 290,150 279,523 10,627 Human Resources 40,885 42,285 39,537 2,748 Municipal Court 213,976 213,976 155,799 58,177 Nondepartmental 413,305 413,305 208,209 205,096 Police 6,299,170 6,272,070 6,172,618 99,452 Library 987,097 987,097 875,921 111,176 Recreation 478,125 478,125 370,775 107,350 Swim Center 449,739 512,039 507,954 4,085 C.S. Administration 337,407 337,407 309,284 28,123 Planning 367,232 367,232 347,213 20,019 Parks Maintenance 526,370 526,370 456,896 69,474 Contingency 1,579,325 2,444,325 2,444,325- Total Expenditures 12,367,228 13,280,128 10,108,112 3,172,016 EVENUES OVER (UNDER) EXPENDITURES (2,137,628)(1,244,728) 831,935 2,969,563 R OTHER FINANCING SOURCES (USES) Transfers in 2,500 2,500 - (2,500) Transfers out (372,772) (379,872) (339,656) 40,216 Total Other Financing Sources and Uses (370,272) (377,372) (339,656) 37,716 NET CHANGE IN FUND BALANCE (1,615,000) (2,515,000) 492,279 3,007,279 FUND BLNE, ennn oear, as orna AACbgiigfyigilly reported 2,700,0001,800,000 2,744,29944,299 rior eriod adustment - - 295,537 295,537 Ppj FUND BALANCE, beinnin oear, as restated 2,700,0001,800,000 3,039,836 339,836 ggfy FUND BALANCE, end of year (budgetary basis) $ 185,000185,000$ 3,532,115 3,347,115$ Interfund loan (249,675) ear, GAAP basis FUND BALANCE, end o$ 3,282,440 fy - 43 - 58 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - STREET FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Taxes and assessments-$ 106,537$ $ $ -106,537 Licenses and permits750 (683) 750 6 7 Franchise fees - 353,380 -353,380 Intergovernmental 1,200,000 1,200,000 117,468 1,317,468 Miscellaneous 3,500 3,500 2 1,535 1 8,035 Total Revenues 1,204,250 1,204,250 594,737 1,798,987 EXPENDITURES Personal services 431,341 424,937 431,341 6,404 Materials and services 691,186 691,186 125,429 565,757 Contingency 641,893 641,893 641,893- Total Expenditures 1,764,420 1,764,420 773,726 990,694 REVENUES OVER (UNDER) EXPENDITURES (560,170) (560,170) 1,368,463 808,293 OTHER FINANCING SOURCES (USES) Transfers in 220,000 220,000 480,218 700,218 Transfers out (199,830) (199,830) (199,830) - Total Other Financing Sources and Uses 20,170 500,388 480,218 2 0,170 NET CHANGE IN FUND BALANCE (540,000) (540,000) 1,848,681 1,308,681 FUND BALANCE, beginning of year 540,000 540,000 256,932 796,932 FUND BALANCE, end of year $ -$ $ -2,105,613$ 2 ,105,613 - 44 - 59 OTHER SUPPLEMENTAL INFORMATION 60 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STREET SDC FUND (BUDGETARY BASIS, NON-GAAP) YEAR ENDED JUNE 30, 2013 udet Amounts Bg OriinalinaActuaVariance gFll EVENUE RS Licenses and permits$ 155,000$ 155,000$ 411,527$ 256,527 Miscellaneous 15,000 15,000 25,112 10,112 Total Revenues 170,000 170,000 436,639 266,639 XPENDITURE ES Materials and services 6,435 6,435 - 6,435 Debt Service Principal 33,519 33,519 24,440 9,079 Interest - - 9,079 (9,079) Capital outlay 5,279,887- 488,3714,791,516 Contingency 5,279,887 - - - Total Expenditures 5,319,8415,319,841 521,8904,797,951 REVENUES OVER (UNDER) EXPENDITURES (5,149,841)(5,149,841) (85,251)5,064,590 OTHER FINANCING SOURCES (USES) Transfers in 459,222 459,222 39,221 (420,001) Transfers out (387,381)(387,381) 387,381- Total Other Financing Sources and Uses 71,841 71,841 39,221 (32,620) NET CHANGE IN FUND BALANCE (5,078,000)(5,078,000) (46,030)5,031,970 FUND BALANCE, beinnin oea ggfyr 5,078,0005,078,000 5,398,189 320,189 rior period adustmen Pjt -- (221,509) (221,509) innin oear, as restated FUND BALANCE, be ggfy 5,078,0005,078,000 5,176,680 98,680 FUND BALANCE, end oear, budetar basis fygy$ --$ 5,130,650 5,130,650$ Interfund loan 186,718 FUND BALANCE, end oear, GAAP basis fy$ 5,317,368 - 45 - 61 CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Special Revenue Housing TransitBuildingRehabilitation ASSETS Cash and investments$ 363,11346,826$ 338,019$ Accounts and notes receivable -90,491 660,661 Property taxes receivable -- - Assessment liens receivable -- - Total Assets$ 363,113137,317$ 998,680$ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities: Accounts payable$ 3,241$ 54,762$ - Deferred Inflows: Deferred revenue - 660,661- Fund Balance: Restricted for: Debt service -- - Construction -- - Culture and recreation -134,076 - Committed to: Capital outlay -- - Public works 308,351- - Culture and recreation -- - Planning and building -- 338,019 Total Fund Balance 134,076 308,351 338,019 Total Liabilities and Fund Balance$ 137,317$ 363,113$ 998,680 62 Special Revenue Cable Library Museum Lavelle Black RSVPFranchiseEndowmentEndowmentTrust $ 2,80310,125$ 26,121$ 2,930$ 51,876$ 5,254- - - - -- - - - -- - - - $ 8,05710,125$ 26,121$ 2,930$ 51,876$ $ -4,205$ -$ -$ -$ -- - - - -- - - - -- - - - -5,920 26,121 2,930 51,876 ----- ----- -8,057--- ----- 5,9208,05726,1212,93051,876 $ 10,125$8,057$26,121$ 2,930$ 51,876 - 46 - 63 CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) JUNE 30, 2013 Capital Projects Street/Storm General Special Capital ConstructionAssessmentImprovement ASSETS Cash and investments$ 1,024,91259,613$ 389,192$ -- - Accounts and notes receivable Property taxes receivable -- - 49,362- - Assessment liens receivable Total Assets$ 1,074,27459,613$ 389,192$ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities: Accounts payable30$ -$ 153,692$ Deferred Inflows: Deferred revenue- 49,362 - Fund Balance: Restricted for: -- - Debt service Construction -- - Culture and recreation -- - Committed to: Capital outlay -59,583 - 1,024,912- 235,500 Public works Culture and recreation -- - Planning and building -- - Total Fund Balance 59,583 1,024,912 235,500 Total Liabilities and Fund Balance$ 59,613$ 1,074,274$ 389,192 64 Capital ProjectsDebt Service Equipment Parks SDCStorm SDCReplacementGO DebtURATotal $ 470,119262,417$ 729,997$ 23,687$ 1,817,540$ 5,619,290$ -- - - - 756,406 -- - 44,596 49,402 93,998 2,20014,016 - - - 65,578 $ 472,319276,433$ 729,997$ 68,283$ 1,866,942$ 6,535,272$ $ --$ 18,992$ -$ 19,721$ 254,643$ 2,20014,016 - 40,713 45,152 812,104 -- - 27,570 1,802,069 1,829,639 470,119262,417 - - - 732,536 -- - - - 220,923 -- 711,005 - - 770,588 -- - - - 1,568,763 -- - - - 8,057 -- - - - 338,019 262,417 470,119 711,005 27,570 1,802,069 5,468,525 $ 276,433$ 472,319$ 729,997$ 68,283$ 1,866,942$ 6,535,272 - 47 - 65 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 pecial Revenue S Search and TransitBuildingSeizure REVENUES Taxes and assessments-$ -$ -$ Licenses and permits- 553,274 - Charges for services56,565 - - Intergovernmenta 25,162449,572 - l Miscellaneous8,245 39,169 15,631 Total Revenues 617,605514,382 15,631 XPENDITURES E Current General government- 404,090 - Highways and streets- - - Culture and recreation630,592 - - Debt Service -- - Principa l Interest- - - Capital outlay37,819 - - Total Expenditures 404,090668,411 - REVENUES OVER (UNDER) EXPENDITURES 213,515(154,029) 15,631 OTHER FINANCING SOURCES (USES) Transfers in150,821 - 7,063 Transfers out- - - Total Other Financing Sources and Uses -150,821 7,063 NET CHANGE IN FUND BALANCE 213,515(3,208) 22,694 FUND BALANCE (DEFICIT), beginning of year 94,836137,284 (22,694) FUND BALANCE, end of year$ 308,351134,076$ -$ 66 pecial Revenue S Housing Cable Library Museum RehabilitationRSVPFranchiseLocal Gas TaxEndowmentEndowment $ --$ -$ -$ -$ -$ -- 28,038 - - - -- - - - - 17,856- - - - - 10151,572 15 - 120 158 17,95751,572 28,053 - 120 158 -- 21,018 - - - -- - - - - 39,40444,665 - - - - -- - - - - -- - - - - -- - - - - 39,40444,665 21,018 - - - 6,907 (21,447) 7,035 - 120 158 - - - - - - - - (480,218)- - - - - (480,218)- - - 6,907 (21,447) 7,035 (480,218) 120 158 331,112 27,367 1,022 480,218 26,001 2,772 $ 338,019$ 5,920$ 8,057$ -$ 26,121$ 2,930 - 48 - 67 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2013 pecial Revenu Se Lavelle Black General Special TrustConstructionAssessment REVENUES Taxes and assessments-$ -$ 19,534$ Licenses and permits- - - Charges for services- - - Intergovernmenta 44,000- - l Miscellaneous5,423 1,795 4,479 Total Revenues 45,7955,423 24,013 XPENDITURES E Current General government- - - Highways and streets- - 62 Culture and recreation3,200 - - Debt Service -- - Principa l Interest- - - Capital outlay- 70,274 - Total Expenditures 70,2743,200 62 REVENUES OVER (UNDER) EXPENDITURES (24,479)2,223 23,951 OTHER FINANCING SOURCES (USES) Transfers in- 207,000 - Transfers out- - - Total Other Financing Sources and Uses 207,000- - NET CHANGE IN FUND BALANCE 182,5212,223 23,951 FUND BALANCE (DEFICIT), beginning of year (122,938)49,653 1,000,961 FUND BALANCE, end of year$ 59,58351,876$ 1,024,912$ 68 Capital ProjectDebt Service s treet/Storm S Capital Equipment ImprovementParks SDCStorm SDCReplacementGO DebtURA $ --$ $ -$ 479,455-$ $ 626,461 - 49,175 25,328 - - - - - - - - - 280,050 - - - - - 2,975 1,990 1,699 3,074 999 8,188 283,025 51,165 27,027 3,074 480,454 634,649 - - - - 199,927- - - - - - - - 3,533 - - - - - - - 300,000- 201,856 - - - 214,281- 25,877 721,876 24,345 - 72,705 - - 721,876 27,878 - 72,705 514,281 427,660 (438,851) 23,287 27,027 (69,631) (33,827) 206,989 - - 210,000- - - (207,000)- - - - - (207,000)- 210,000- - - (438,851) (183,713) 27,027 140,369 (33,827) 206,989 674,351 446,130 443,092 570,636 61,397 1,595,080 $ 235,500$ 262,417$ 470,119$ 711,005$ 27,570$ 1,802,069 - 49 - 69 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2013 Total REVENUES Taxes and assessments1,125,450$ Licenses and permits655,815 Charges for services 56,565 Intergovernmenta 816,640 l Miscellaneous 145,633 Total Revenues 2,800,103 XPENDITURES E Current General government625,035 Highways and streets 62 Culture and recreation721,394 Debt Service 501,856 Principa l Interest 240,158 Capital outlay 927,019 Total Expenditures 3,015,524 REVENUES OVER (UNDER) EXPENDITURES (215,421) OTHER FINANCING SOURCES (USES) Transfers in 574,884 Transfers out (687,218) Total Other Financing Sources and Uses (112,334) NET CHANGE IN FUND BALANCE (327,755) FUND BALANCE (DEFICIT), beginning of year 5,796,280 FUND BALANCE, end of year$ 5,468,525 - 50 - 70 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - TRANSIT FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Charges for services42,200$ 47,200$ 56,565$ 9,365$ Intergovernmental418,675 449,572 (14,103) 463,675 Miscellaneous 3,200 3,200 8,245 5,045 Total Revenues 464,075 514,382 514,075 307 EXPENDITURES Personal services 400,562 345,430 403,430 2,868 Materials and services 230,030 258,441 231,441 1,411 Capital outlay 15,000 37,819 6 4,000 2 6,181 Contingency 106,495 76,495 - 7 6,495 Total Expenditures 725,366 668,411 775,366 106,955 REVENUES OVER (UNDER) EXPENDITURES (261,291) (261,291) (154,029) 107,262 OTHER FINANCING SOURCES (USES) Transfers in 151,000 150,821 (179) 151,000 NET CHANGE IN FUND BALANCE (110,291) (110,291) (3,208) 107,083 FUND BALANCE, beginning of year 110,291 137,284 110,291 2 6,993 FUND BALANCE, end of year $ --$ 134,076 $ $ 134,076 - 51 - 71 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - BUILDING FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Licenses and permits$ 306,001$ 97,273 $ 456,001$ 553,274 Intergovernmental 30,880 30,880 25,162 (5,718) Miscellaneous 13,200 13,200 3 9,169 2 5,969 Total Revenues 350,081 500,081 117,524 617,605 EXPENDITURES Personal services 234,522 (375) 204,522 234,897 Materials and services 178,714 188,714 19,521 169,193 Contingency 38,845 183,845- 183,845 Total Expenditures 422,081 607,081 202,991 404,090 REVENUES OVER (UNDER) EXPENDITURES (72,000) (107,000) 320,515 213,515 OTHER FINANCING SOURCES (USES) Proceeds from interfund loan 65,000 (65,000)- 6 5,000 NET CHANGE IN FUND BALANCE (7,000) (42,000) 255,515 213,515 FUND BALANCE, beginning of year 7,000 42,000 9 4,836 5 2,836 FUND BALANCE, end of year $ -$ 308,351-$ $ 308,351 - 52 - 72 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SEARCH AND SEIZURE FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Miscellaneous-$ 15,631$ $ $ -15,631 EXPENDITURES Materials and services7,500 7,500 - 7,500 Contingency- 7,100 - 7,100 Total Expenditures 7,500 1 4,600 - 1 4,600 REVENUES OVER (UNDER) EXPENDITURES (7,500) (14,600) 1 5,631 3 0,231 OTHER FINANCING SOURCES (USES) Transfers in- (37) 7,100 7,063 NET CHANGE IN FUND BALANCE (7,500) (7,500) 2 2,694 3 0,194 FUND BALANCE (DEFICIT), beginning of year 7,500 (22,694) (30,194) 7,500 FUND BALANCE, end of year - $ $ -$ -$ - - 53 - 73 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – HOUSING REHABILITATION FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Miscellaneous22,750$ 22,750$ 28,822 $ $ 51,572 EXPENDITURES Current Personal services 9,500 9,500 9,378 122 Materials and services162,35535,287 127,068 140,355 Contingency 97,895 9 7,895 - 9 7,895 Total Expenditures 247,750269,75044,665 225,085 NET CHANGE IN FUND BALANCE (225,000)(247,000)6,907 253,907 FUND BALANCE, beginning of year 225,000331,112 247,000 8 4,112 FUND BALANCE, end of year $ --$ 338,019 $ $ 338,019 - 54 - 74 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - RSVP FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Intergovernmental46,189$ 46,189$ (28,333) $ $ 17,856 Miscellaneous - - 101 101 Total Revenues 46,189 17,957 (28,232) 4 6,189 EXPENDITURES Current Personal services 45,313 4 5,313 3 3,584 1 1,729 Materials and services 8,092 8,092 5,820 2,272 Contingency 1,784 1,784 - 1,784 Total Expenditures 55,189 5 5,189 3 9,404 1 5,785 NET CHANGE IN FUND BALANCE (9,000) (9,000) (21,447) (12,447) FUND BALANCE, beginning of year 9,000 9,000 2 7,367 1 8,367 FUND BALANCE, end of year $ -$ $ 5,920 $ -5,920 - 55 - 75 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – CABLE FRANCHISE FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Licenses and permits24,500$ 3,538 $ $ 24,500$ 28,038 Miscellaneous 50 (35) 5 0 1 5 Total Revenues 24,550 24,550 2 8,053 3,503 EXPENDITURES Materials and services 26,050 26,050 2 1,018 5,032 NET CHANGE IN FUND BALANCE (1,500) (1,500) 7,035 8,535 FUND BALANCE, beginning of year 1,500 1,022 (478) 1,500 FUND BALANCE, end of year $ -$ $ 8,057 $ -8,057 - 56 - 76 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LOCAL GAS TAX FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES $ - $ -$ -$ - EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - - - OTHER FINANCING SOURCES (USES) Transfers out (278,000) (278,000) (480,218) (202,218) NET CHANGE IN FUND BALANCE (278,000) (278,000) (480,218) (202,218) FUND BALANCE, beginning of year 278,000 480,218 278,000 202,218 FUND BALANCE, end of year $ - $ -$ -$ - - 57 - 77 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LIBRARY ENDOWMENT FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Miscellaneous100 $ $ 100$ 120$ 20 EXPENDITURES Contingency 26,000 26,000 - 2 6,000 NET CHANGE IN FUND BALANCE (25,900) (25,900) 120 2 6,020 FUND BALANCE, beginning of year 25,900 25,900 2 6,001 101 FUND BALANCE, end of year $ -$ $ 26,121 $ -26,121 - 58 - 78 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – MUSEUM ENDOWMENT FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Miscellaneous$ 10 $ 10$ 158$ 148 EXPENDITURES Contingency 2,775 2,775 - 2,775 NET CHANGE IN FUND BALANCE (2,765) (2,765) 158 2,923 FUND BALANCE, beginning of year 2,765 2,765 2,772 7 FUND BALANCE, end of year $ -$ $ 2,930 $ -2,930 - 59 - 79 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LAVELLE BLACK TRUST FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Miscellaneous$ 200$ 200$ 5,223 $ 5 ,423 EXPENDITURES Materials and services 10,000 10,000 3,200 6,800 Contingency 35,200 35,200 - 3 5,200 Total Expenditures 45,200 45,200 3,200 4 2,000 NET CHANGE IN FUND BALANCE (45,000) (45,000) 2,223 4 7,223 FUND BALANCE, beginning of year 45,000 45,000 4 9,653 4,653 FUND BALANCE, end of year $ -$ $ 51,876 $ -51,876 - 60 - 80 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Intergovernmental40,000$ 44,400$ (400) $ $ 44,000 Miscellaneous-(455) 2,250 1,795 Total Revenues40,000(855) 4 6,650 4 5,795 EXPENDITURES Materials and services333 333 - 333 Capital outlay100,000 111,650 7 0,274 4 1,376 Contingency199,667 199,667 - 199,667 Total Expenditures300,000 311,650 7 0,274 241,376 REVENUES OVER (UNDER) EXPENDITURES (260,000) (265,000)(24,479) 240,521 OTHER FINANCING SOURCES (USES) Transfers in60,000 6 5,000 207,000 142,000 NET CHANGE IN FUND BALANCE (200,000) (200,000) 182,521 382,521 FUND BALANCE, beginning of year 200,000(122,938)(322,938) 200,000 FUND BALANCE (DEFICIT), end of year $ - $ -$ 59,583$ 59,583 - 61 - 81 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SPECIAL ASSESSMENT FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Taxes and assessments34,685$ (15,151) $ $ 34,685$ 19,534 Miscellaneous 2,500 2,500 4,479 1,979 Total Revenues 37,185 37,185 24,013 (13,172) EXPENDITURES Materials and services 1,047 1,047 6 2 985 Contingency 844,591 844,591- 844,591 Total Expenditures 845,638 845,63862 845,576 REVENUES OVER (UNDER) EXPENDITURES (808,453) (808,453) 23,951 832,404 OTHER FINANCING SOURCES (USES) Transfers out (204,547) (204,547)- 204,547 NET CHANGE IN FUND BALANCE (1,013,000) (1,013,000) 23,951 1,036,951 FUND BALANCE, beginning of year 1,013,000 (12,039) 1,013,000 1,000,961 FUND BALANCE, end of year $ -$ 1,024,912-$ $ 1,024,912 - 62 - 82 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, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Taxes and assessments120,000$ (120,000)-$ $ $ 120,000 Licenses and permits 315,000 (315,000)- 315,000 Intergovernmental 924,111 924,111 (644,061) 280,050 Miscellaneous 2,000 2,000 2,975 975 Total Revenues 1,361,111 (1,078,086) 1,361,111 283,025 EXPENDITURES Materials and services 1,184 1,184 - 1,184 Capital outlay 1,954,457 2,676,333 2,676,333 721,876 Contingency 168,522 168,522- 168,522 Total Expenditures 2,846,039 2,124,163 2,846,039 721,876 REVENUES OVER (UNDER) EXPENDITURES (1,484,928) (1,484,928) (438,851) 1,046,077 OTHER FINANCING SOURCES (USES) Transfers in 869,928 (869,928)- 869,928 NET CHANGE IN FUND BALANCE (615,000) (615,000) (438,851) 176,149 FUND BALANCE, beginning of year 615,000 615,000 59,351 674,351 FUND BALANCE, end of year $ -$ 235,500-$ $ 235,500 - 63 - 83 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – PARKS SDC FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Licenses and permits8,000$ 8,000$ 41,175 $ $ 49,175 Miscellaneous 1,000 1,000 1,990 990 Total Revenues 9,000 9,000 5 1,165 4 2,165 EXPENDITURES Materials and services 20,353 2 0,353 3,533 1 6,820 Capital outlay 135,000 135,000 110,655 2 4,345 Contingency 133,647 128,647- 128,647 Total Expenditures 289,000 284,000 256,122 2 7,878 REVENUES OVER (UNDER) EXPENDITURES (280,000) (275,000) 298,287 2 3,287 OTHER FINANCING SOURCES (USES) Transfers out (20,000) (25,000) (207,000) (182,000) NET CHANGE IN FUND BALANCE (300,000) (300,000) (183,713) 116,287 FUND BALANCE, beginning of year 300,000 300,000 146,130 446,130 FUND BALANCE, end of year $ --$ 262,417 $ $ 262,417 - 64 - 84 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STORM SDC FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Licenses and permits-$ 25,328$ $ $ -25,328 Miscellaneous- - 1,699 1,699 Total Revenues - - 2 7,027 2 7,027 EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - 2 7,027 2 7,027 OTHER FINANCING SOURCES (USES) Transfers out (420,000) (420,000)- 420,000 NET CHANGE IN FUND BALANCE (420,000) (420,000) 27,027 447,027 FUND BALANCE, beginning of year 420,000 420,000 23,092 443,092 FUND BALANCE, end of year $ -$ 470,119-$ $ 470,119 - 65 - 85 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – EQUIPMENT REPLACEMENT FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Miscellaneous1,000$ 2,074 $ $ 1 ,000$ 3 ,074 EXPENDITURES Capital outlay 763,087 763,087 72,705 690,382 REVENUES OVER (UNDER) EXPENDITURES (762,087) (762,087) (69,631) 692,456 OTHER FINANCING SOURCES (USES) Transfers in 210,000 210,000 - 210,000 NET CHANGE IN FUND BALANCE (552,087) (552,087) 692,456 140,369 FUND BALANCE, beginning of year 552,087 552,087 18,549 570,636 FUND BALANCE, end of year $ -$ 711,005-$ $ 711,005 - 66 - 86 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – POLICE CONSTRUCTION FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES - $ $ -$ -$ - EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - - - OTHER FINANCING SOURCES (USES) Transfers out (2,500) (2,500) - 2,500 NET CHANGE IN FUND BALANCE (2,500) (2,500) - 2,500 FUND BALANCE, beginning of year 2,500 2,500 -(2,500) FUND BALANCE, end of year $ - $ -$ -$ - - 67 - 87 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL OBLIGATION DEBT FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Taxes and assessments650,000$ (170,545) $ $ 650,000$ 479,455 Miscellaneous 800 800 999 199 Total Revenues 650,800 650,800 (170,346) 480,454 EXPENDITURES Materials and services 1,519 1,519 - 1,519 Debt service Principal 300,000 300,000 300,000 - Interest 214,281 214,281 214,281 - Contingency 199,000 199,000- 199,000 Total Expenditures 714,800 714,800 200,519 514,281 REVENUES OVER (UNDER) EXPENDITURES (64,000) (64,000) (33,827) 30,173 NET CHANGE IN FUND BALANCE (64,000) (64,000) (33,827) 30,173 FUND BALANCE, beginning of year 64,000 64,000 61,397 (2,603) FUND BALANCE, end of year $ -$ $ 27,570 $ -27,570 - 68 - 88 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – URBAN RENEWAL DEBT FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Taxes and assessments550,000$ 76,461 $ $ 550,000$ 626,461 Miscellaneous 3,000 3,000 8,188 5,188 Total Revenues 553,000 553,000 81,649 634,649 EXPENDITURES Personal services 79,891 7 9,891 6 5,183 1 4,708 Materials and services 4,163,900 4,298,644 4,298,644 134,744 Debt service Principal 251,855 251,855 49,999 201,856 Interest 375,877 375,877 25,877 350,000 Contingency 1,026,733 1,026,733- 1,026,733 Total Expenditures 6,033,000 5,605,340 6,033,000 427,660 REVENUES OVER (UNDER) EXPENDITURES (5,480,000) (5,480,000) 5,686,989 206,989 OTHER FINANCING SOURCES (USES) Proceeds from issuance of debt 4,000,000 4,000,000 (4,000,000)- NET CHANGE IN FUND BALANCE (1,480,000) (1,480,000) 1,686,989 206,989 FUND BALANCE, beginning of year 1,480,000 115,080 1,480,000 1,595,080 FUND BALANCE, end of year $ -$ 1,802,069-$ $ 1,802,069 - 69 - 89 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF FUND NET POSITION - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS JUNE 30, 2013 Water SDCSewer SDCTotal ASSETS Current Assets Cash and investments741,370$ 449,265$ 1,190,635$ Accounts receivable16,68023,81640,496 Total Assets 473,081758,050 1,231,131 LIABILITIES - - - NET POSITION: Restricted for construction$ 758,050$ 473,081$ 1,231,131 - 70 - 90 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS YEAR ENDED JUNE 30, 2013 Water SDCSewer SDCSurfacewater OPERATING REVENUES $ --$ -$ OPERATING EXPENSES --- -- - OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment revenue 1,5552,876 - NET INCOME BEFORE CONTRIBUTIONS 1,5552,876 - AND TRANSFERS Capital contributions 92,991197,939- -- (54,940) Transfers out CHANGE IN NET POSITION 95,867199,494(54,940) NET POSITION, Beginning of year 662,183273,587 54,940 NET POSITION, End of year $758,050$ 473,081$ - 91 Total $ - - - 4,431 4,431 290,930 (54,940) 240,421 990,710 $ 1,231,131 - 71 - 92 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS YEAR ENDED JUNE 30, 2013 Waterewer S DCDC SS CASH FLOWS FROM OPERATING ACTIVITIE S Paid to suppliers$- $- CASH FLOWS FROM NON-CAPITAL FINANCIN G ACTIVITIE S Transfers out-- CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIE S System development revenue76,311 1 74,123 CASH FLOWS FROM INVESTING ACTIVITIE S Interest on investments2,8761,555 Increase (Decrease) in Cash and Investments79,187 1 75,678 CASH AND INVESTMENTS, Beginning of year 662,183273,587 CASH AND INVESTMENTS, End of year $741,370 $449,265 RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Accounts payable and accrued liabilities$- $- Noncash Transactions Transfer of capital assets$- $- 93 urfacewaterTotals S $(514) $(514) (55,161)(55,161) 250,434- 4,431- 199,190(55,675) 991,44555,675 $- $1,190,635 $(514) $(514) $- $- - 72 - 94 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET (NON-GAAP BASIS) AND ACTUAL - WATER FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Charges for services3,167,025$ 69,863 $ $ 3 ,167,025$ 3 ,236,888 Miscellaneous 51,000 5 1,000 5 8,454 7,454 Interest earnings 3,500 3,500 3,827 327 Total Revenues 3,221,525 3,299,169 3,221,525 7 7,644 EXPENDITURES Personal services 1,287,000 (3,239) 1,283,761 1,283,761 Materials and services 720,188 598,250 720,188 121,938 Debt service Principal 621,880 621,879 621,880 1 Interest 535,906 536,114 (208) 535,906 Capital outlay 42,000 4 2,000 1 9,173 2 2,827 Contingency 1,132,133 1,132,133 - 1,132,133 Total Expenditures 4,335,868 1,273,452 4,335,868 3,062,416 REVENUES OVER (UNDER) EXPENDITURES (1,114,343) (1,114,343) 236,753 1,351,096 OTHER FINANCING SOURCES (USES) Transfers in 824,000 824,000 824,000 - Transfers out (114,657) (114,657) (114,657) - Total Other Financing Sources and Uses 709,343 709,343 709,343 - NET CHANGE IN FUND BALANCE (405,000) (405,000) 946,096 1,351,096 FUND BALANCE, beginning of year, as reported 405,000 447,431 405,000 4 2,431 Prior period adjustment -- 73,741 7 3,741 FUND BALANCE, beginning of year, as restated 405,000 521,172 405,000 116,172 FUND BALANCE, end of year $ -- $ $ 1 ,467,268$ 1,467,268 - 73 - 95 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL - SEWER FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES $ (4,869) Charges for services$ 6 ,553,084$ 6 ,553,084$ 6 ,548,215 Miscellaneous2,000 2,000 9,292 7,292 Interest earnings4,000 4,000 1 0,604 6,604 Total Revenues6,559,0846,568,111 6,559,084 9,027 EXPENDITURES Personal services(18,169) 1,835,229 1,835,229 1,853,398 Materials and services 851,519 1,047,902 1,047,902 196,383 Debt service Principal1,865,0001,865,000 1,865,000 - Interest1,085,6631,085,663 1,085,663 - Capital outlay142,097 142,097 2,227 139,870 Contingency3,750,1443,750,144 3,750,144- Total Expenditures9,726,0354,068,228 9,726,035 5,657,807 REVENUES OVER (UNDER) EXPENDITURES (3,166,951)(3,166,951)4,077,255 910,304 OTHER FINANCING SOURCES (USES) Transfers in2,947,664 2,944,724 2,944,724 2,940 Transfers out(389,773)(389,773)(389,773) - Total Other Financing Sources and Uses2,554,9512,557,891 2,554,951 2,940 NET CHANGE IN FUND BALANCE (612,000)(612,000)4,080,195 3,468,195 FUND BALANCE, beginning of year as originally reported 612,000 612,000 641,619 2 9,619 Prior period adjustment -- 73,741 7 3,741 FUND BALANCE, beginning of year, as restated 612,000 612,000 715,360 103,360 FUND BALANCE, end of year $ -$ $ -4,183,555$ 4 ,183,555 - 74 - 96 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL – WWTP CONSTRUCTION FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES $ (11,026) Interest earnings$ 85,000$ 85,000$ 73,974 EXPENDITURES Materials and services 6,839 6,839 - 6,839 Capital outlay 13,732,590 12,559,803 1 3,732,590 1,172,787 Total Expenditures 13,739,429 12,566,642 1 3,739,429 1,172,787 REVENUES OVER (UNDER) EXPENDITURES (13,654,429)(13,654,429) (1,098,813) 12,555,616 OTHER FINANCING SOURCES (USES) Transfers in 147,153 147,153 (147,153)- Transfers out (2,892,724) (2,892,724) (2,892,724) - Total Other Financing Sources and Uses (2,745,571) (2,745,571) (2,892,724) (147,153) NET CHANGE IN FUND BALANCE (16,400,000)(16,400,000) (3,991,537) 12,408,463 FUND BALANCE, beginning of year as originally reported 16,400,000 1,174,688 1 6,400,000 1 7,574,688 Prior period adjustment - (53,000)- (53,000) FUND BALANCE, beginning of year, as restated 16,400,000 (53,000) 1 6,400,000 1 7,521,688 FUND BALANCE, end of year $ -$ 13,530,151-$ $ 12,355,463 - 75 - 97 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL – WWD CONSTRUCTION FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Interest earnings$ 8,000$ 9,106 $ 8 ,000$ 17,106 EXPENDITURES Materials and services 4,000 4,000 - 4,000 Capital outlay 3,322,216 3,975,215 3,975,215 652,999 Contingency 634,446 634,446 634,446- Total Expenditures 4,613,661 3,960,662 4,613,661 652,999 REVENUES OVER (UNDER) EXPENDITURES (4,605,661) (4,605,661) (635,893) 3,969,768 OTHER FINANCING SOURCES (USES) Transfers in (485,440) 524,661 524,661 3 9,221 Transfers out (754,000) (754,000) (754,000) - Total Other Financing Sources and Uses (229,339) (229,339) (714,779) (485,440) NET CHANGE IN FUND BALANCE (4,835,000) (4,835,000) (1,350,672) 3,484,328 FUND BALANCE, beginning of year, as originally reported 4,835,000 (156,099) 4,835,000 4,678,901 Prior period adjustment - (168,509)- (168,509) FUND BALANCE, beginning of year, as restated 4,835,000 (324,608) 4,835,000 4,510,392 FUND BALANCE, end of year $ -- $ $ 3 ,159,720$ 2 ,835,112 - 76 - 98 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL - WATER SDC FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Licenses and permits45,000$ 31,311 $ $ 45,000$ 76,311 Interest earnings 1,300 1,300 2,876 1,576 Total Revenues 46,300 46,300 7 9,187 3 2,887 EXPENDITURES Materials and services 494 494 - 494 Contingency 58,214 5 8,214 - 5 8,214 Total Expenditures 58,708 5 8,708 - 5 8,708 REVENUES OVER (UNDER) EXPENDITURES (12,408) (12,408) 79,187 9 1,595 OTHER FINANCING SOURCES (USES) Transfers in 145,000 145,000 -(145,000) Transfers out (632,592) (632,592) - 632,592 Total Other Financing Sources and Uses (487,592) (487,592) - 487,592 NET CHANGE IN FUND BALANCE (500,000) (500,000) 79,187 579,187 FUND BALANCE, beginning of year 500,000 500,000 662,183 162,183 FUND BALANCE, end of year $ -$ $ -741,370$ 741,370 - 77 - 99 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL - SEWER SDC FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Licenses and permits-$ -$ 174,123$ 174,123$ Interest earnings- - 1,555 1,555 Total Revenues - 175,678- 175,678 EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - 175,678- 175,678 OTHER FINANCING SOURCES (USES) Transfers out (145,000) (145,000)- 145,000 NET CHANGE IN FUND BALANCE (145,000) (145,000) 320,678 175,678 FUND BALANCE, beginning of year 145,000 145,000 128,587 273,587 FUND BALANCE, end of year $ -$ 449,265-$ $ 449,265 - 78 - 100 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL – SURFACEWATER FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES - $ $ -$ -$ - EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - - - OTHER FINANCING SOURCES (USES) Transfers out (52,000) (52,000) (54,940) (2,940) NET CHANGE IN FUND BALANCE (52,000) (52,000) (54,940) (2,940) FUND BALANCE, beginning of year 52,000 5 2,000 5 4,940 2,940 FUND BALANCE, end of year $ - $ -$ -$ - - 79 - 101 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF FUND NET POSITION - INTERNAL SERVICE FUNDS JUNE 30, 2013 Technical & Information Environmental ServicesInsuranceServices ASSETS Current Assets Cash and investments89,465$ 397,402$ 200,022$ LIABILITIES Current Liabilities Accounts payable21,101 587 16,942 Noncurrent Liabilities Accrued compensated absences- - 106,446 Total Liabilities 58721,101 123,388 NET POSITION: Unrestricted68,364$ 396,815$ 76,634$ 102 Total $ 686,889 38,630 106,446 145,076 $ 541,813 - 80 - 103 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2013 Technical & Information Environmental ServicesInsuranceServices OPERATING REVENUES Licenses and permits-$ -$ 19,628$ Charges for services659,864 500,005 1,121,850 Miscellaneous351 922 1,367 Total Operating Revenues 500,927660,215 1,142,845 OPERATING EXPENSES Personal services 55,443344,964 948,036 349,652297,400 494,523 Materials and services Total Operating Expenses 405,095642,364 1,442,559 OPERATING INCOME (LOSS) 95,83217,851 (299,714) NONOPERATING REVENUES (EXPENSES) Investment revenue 1,374160 485 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 97,20618,011 (299,229) Transfers in -- 362,322 Transfers out -- (5,000) CHANGE IN NET POSITION 97,20618,011 58,093 NET POSITION, Beginning of year 299,60950,353 18,541 NET POSITION, End of year $ 396,81568,364$ 76,634$ 104 Building MaintenanceTotal $ 19,628-$ 2,281,719- 2,640- 2,303,987- 1,348,443- 1,141,575- 2,490,018- (186,031)- 2,019- (184,012)- 362,322- (54,732)(49,732) 123,578(49,732) 49,732418,235 $ 541,813-$ - 81 - 105 CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2013 Technical and InformationEnvironmental ServicesInsuranceServices CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers664,215$1,142,845 $ $ 500,927 Paid to suppliers (323,059) (418,791) (479,674) Paid to employees (344,964) (55,443) (916,759) Net Cash Provided by (Used in) Operating Activities (3,808) (253,588) 26,693 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in - 362,322- Transfers out (328) (35) (6,067) Net Cash Provided by (Used in) Non-Capital Financing Activities (328) (35) 356,255 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 160 485 1,374 Increase (Decrease) in Cash and Investments (3,976) 103,152 28,032 CASH AND INVESTMENTS, Beginning of year 93,441 96,870 3 69,370 CASH AND INVESTMENTS, End of year $ 89,465$ 200,022 $ 397,402 RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)17,851$ (299,714) $ $ 9 5,832 Change in assets and liabilities Accounts receivable 4,000 - - Compensated absences payable - 31,277 - Accounts payable and accrued liabilities (25,659) (69,139) 14,849 Net Cash Provided by (Used in) Operating Activities$ (3,808)$ (253,588) $ 2 6,693 Noncash Transactions Transfer of capital assets -$ - $ $ - 106 Building MaintenanceTotals $ 2,307,987-$ (20,717)(1,242,241) (17,395)(1,334,561) (38,112)(268,815) - 362,322 (50,219) (56,649) (50,219) 305,673 - 2,019 (88,331) 38,877 88,331 648,012 - $ $ 6 86,889 $ (186,031)-$ - 4,000 (17,395) 13,882 (20,717)(100,666) $ (38,112)$ (268,815) $ - $ - - 82 - 107 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON-GAAP BASIS) – INFORMATION SERVICES FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Charges for services634,395$659,864$ 25,469 $ $ 634,395 Miscellaneous - 352 - 352 Interest earnings - 160 - 160 Total Revenues 634,395 660,376 634,395 2 5,981 EXPENDITURES Personal services 345,169 344,964 345,169 205 Materials and services 246,339 222,858 246,339 2 3,481 Capital outlay 75,000 74,542 7 5,000 458 Contingency 30,887- 3 0,887 3 0,887 Total Expenditures 697,395 642,364 697,395 5 5,031 NET CHANGE IN FUND BALANCE (63,000) (63,000) 18,012 8 1,012 FUND BALANCE, beginning of year 63,000 50,352(12,648) 6 3,000 FUND BALANCE, end of year $ -- $ $ 68,364$ 68,364 - 83 - 108 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON-GAAP BASIS) – INSURANCE FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Charges for services436,502$ 500,005$ 63,503 $ $ 436,502 Miscellaneous 12,624 12,624 922 (11,702) Interest earnings -- 1,374 1,374 Total Revenues 449,126 449,126 53,175 502,301 EXPENDITURES Personal services 57,409 57,409 55,443 1,966 Materials and services 476,717 127,065 476,717 349,652 Total Expenditures 534,126 534,126 129,031 405,095 NET CHANGE IN FUND BALANCE (85,000) (85,000) 182,206 9 7,206 FUND BALANCE, beginning of year 85,000 85,000 214,609 299,609 FUND BALANCE, end of year $ -$ 396,815-$ $ 396,815 - 84 - 109 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON-GAAP BASIS) – TECHNICAL & ENVIRONMENTAL SERVICES FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES Licenses and permits$ 7,000$ 7,000$ 19,628$ 12,628 Charges for services 659,119 659,119 1,121,850 462,731 Miscellaneous 600,000 600,000 1,366 (598,634) Interest earnings 200 200 485 285 Total Revenues 1,266,319 1,266,319 1,143,329 (122,990) EXPENDITURES Personal services 942,737 942,737 934,154 8,583 Materials and services593,947593,947494,52399,424 Contingency 147,225 147,225 147,225- Total Expenditures 1,683,909 1,683,909 1,428,677 255,232 REVENUES OVER (UNDER) EXPENDITURES (417,590) (417,590) (285,348) 132,242 OTHER FINANCING SOURCES (USES) Transfers in 356,590 356,590 379,717 23,127 Transfers out (5,000) (5,000) (5,000) - Total Other Financing Sources and Uses 351,590 351,590 374,717 23,127 NET CHANGE IN FUND BALANCE (66,000) (66,000) 89,369 155,369 FUND BALANCE, beginning of year 66,000 66,000 93,710 27,710 FUND BALANCE, end of year $ -$ 183,079-$ $ 183,079 - 85 - 110 CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON-GAAP BASIS) – BUILDING MAINTENANCE FUND YEAR ENDED JUNE 30, 2013 Budget Amounts OriginalFinalActualVariance REVENUES - $ $ -$ -$ - EXPENDITURES ---- REVENUES OVER (UNDER) EXPENDITURES ---- OTHER FINANCING SOURCES (USES) Transfers out(44,000)(44,000)(67,127)(23,127) NET CHANGE IN FUND BALANCE (44,000)(44,000)(67,127)(23,127) FUND BALANCE, beginning of year 44,00023,127 4 4,000 6 7,127 FUND BALANCE, end of year $ - $ -$ -$ - - 86 - 111 OTHER FINANCIAL SCHEDULES 112 CITY OF WOODBURN, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES YEAR ENDED JUNE 30, 2013 UncollectedInterest,Uncollected 2012-13BalanceDiscounts andBalances LevyJuly 1, 2012AdjustmentsCollectionsJune 30, 2013 Tax Year 2012-13$8,369,810$ (246,027)-$$(7,835,630)$ 288,153 2011-12 311,618-(13,930)(145,000)152,688 2010-11 168,906-(4,813)(64,510)99,583 2009-10 103,957-(5,158)(63,610)35,189 2008-09 45,038-(442)(31,304)13,292 2007-08 11,276-(519)(2,472)8,285 2006-07 4,792-(227)(716)3,849 Prior 17,573-(275)(1,136)16,162 $8,369,810$663,160$(271,391)$(8,144,378)617,201 Cash with county58,813 Property taxes receivable$ 676,014 - 87 - 113 CITY OF WOODBURN, OREGON SCHEDULE OF DEBT PRINCIPAL AND INTEREST TRANSACTIONS YEAR ENDED JUNE 30, 2013 InterestDate ofFiscal Year RatesIssueof Maturity PRINCIPAL TRANSACTIONS Governmental Activities Series 2005 GO Bonds4.85-4.9%20052024-25 1999 OEDD Loan5.01%19992017-18 2005 URA Loan4.22%20052015-16 Subtotal, governmental activities Business-type Activities Series 2003 Water Bonds3.00-4.63%20032028-29 2005 OEDD Loan4.21%20052024-25 2005 SDWR Loan 4.21%20052024-25 Series 2011 Sewer Bonds Subtotal, business-type activities Unmatured Interest Outstanding InterestDate ofJuly 1, RatesIssue2012 INTEREST TRANSACTIONS Governmental Activities Series 2005 GO Bonds4.85-4.9%2005$ 1,688,838 1999 OEDD Loan5.01%1999 33,379 2005 URA Loan4.22%2005 51,893 Subtotal, governmental activities 1,774,110 Business-type Activities Series 2003 Water Bonds3.00-4.63%2003 2,964,048 2005 OEDD Loan4.21%2005 942,420 2005 SDWR Loan 4.21%2005 942,420 Series 2011 Sewer Bonds 9,834,947 Subtotal, business-type activities 14,683,835 $ 16,457,945 114 OutstandingOutstanding July 1,NewPrincipalJune 30, 2012IssuesPaid2013 $ 5,365,000$ (300,000)-$ $ 5,065,000 180,213 - (24,440) 155,773 688,236 (201,855)- 486,381 6,233,449 (526,295)- 5,707,154 6,519,163 (271,065)- 6,248,098 2,955,320 (175,407)- 2,779,913 2,955,328 (175,407)- 2,779,921 33,291,556 (1,865,000)- 31,426,556 45,721,367 (2,486,879)- 43,234,488 $ 51,954,816$ (3,013,174)-$ $ 48,941,642 Unmatured Interest NewInterestJune 30, IssuesPaid/Matured2013 $ (214,281)-$ 1,474,557$ (9,079)- 24,300 (25,877)- 26,016 (249,237)- 1,524,873 (287,068)- 2,676,980 (124,419)- 818,001 (124,419)- 818,001 (1,085,662)- 8,749,285 (1,621,568)- 13,062,267 $ (1,870,805)-$ $ 14,587,140 - 88 - 115 CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS JUNE 30, 2013 Fiscal Year Ending2005 General Obligation Bonds1999 OEDD Loan June 30,PrincipalInterestTotalPrincipalInterestTotal 2014$320,000 $32,351 $ 2 03,781$ 5 23,781$ 29,663$7,857 2015335,0006,37336,268 1 92,261 5 27,261 29,895 2016350,0004,87935,020 1 79,866 5 29,866 30,141 2017370,0003,37133,770 1 66,566 5 36,566 30,399 2018385,0001,82037,495 1 52,136 5 37,136 35,675 2019405,000-- 1 36,736 5 41,736 - 2020425,000-- 1 20,536 5 45,536 - 2021445,000-- 1 03,536 5 48,536 - 2022470,000-- 85,180 5 55,180 - 2023495,000-- 65,793 5 60,793 - 2024520,000-- 45,003 5 65,003 - 2025545,000-- 23,163 5 68,163 - 2026--- - - - 2027--- - - - 2028--- - - - 2029--- - - - 2030--- - - - 2031--- - - - $5,065,000 $155,773 $24,300 $180,073 $ 1,474,557$6,539,557 116 2005 URA Loan2003 Water Bonds PrincipalInterestTotalPrincipalInterestTotal $210,509 $277,241 $559,975 $ 17,223$ 227,732$282,734 219,534227,732289,548266,498556,046 8,198 56,33856,933301,530254,916556,446 595 - 313,591-242,854556,445 - - 325,789-229,997555,786 - - 343,132-216,314559,446 - - 355,631-201,559557,190 - - 373,299-185,912559,211 - - 391,148-169,113560,261 - - 404,158-151,316555,474 - - 427,356-132,624559,980 - - 445,702-112,858558,560 - - 464,204-92,245556,449 - - 487,867-70,775558,642 - - 511,700-48,211559,911 - - 530,709-24,547555,256 - --- - - - --- - - - $486,381 $2,676,980 $8,925,078 $ 26,016$ 512,397$6,248,098 - 89 - 117 CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS (Continued) JUNE 30, 2013 Fiscal Year Ending2005 OEDD Loan2005 SDWR Loan June 30, PrincipalInterestTotalPrincipalInterestTotal 2014$182,792 $117,034 $299,826 $ 1 17,034$ 2 99,826$182,792 2015190,487190,487109,339299,826 1 09,339 2 99,826 2016198,507198,507101,319299,826 101,319 2 99,826 2017206,86492,962299,826206,86492,962299,826 2018215,57384,253299,826215,57384,253299,826 2019224,64975,178299,827224,64975,178299,827 2020234,10665,720299,826234,10665,720299,826 2021243,96255,864299,826243,96255,864299,826 2022254,23345,593299,826254,23345,593299,826 2023264,93634,890299,826264,93634,890299,826 2024276,09023,736299,826276,09023,736299,826 2025287,71312,113299,826287,72312,113299,836 2026--- - - - 2027--- - - - 2028--- - - - 2029--- - - - 2030--- - - - 2031--- - - - $2,779,912 $818,001 $3,597,913 $2,779,922 $818,001 $3,597,923 118 2011 Sewer BondsTotals PrincipalInterestTotalPrincipalInterestTotal $2,265,153 $1,044,559 $3,309,712 $3,473,643$1,784,729$5,258,372 2,755,000972,7133,727,7134,009,9511,664,7215,674,672 2,478,685901,3773,380,0623,613,7081,544,2715,157,979 2,603,647930,1653,533,8123,731,3651,528,8805,260,245 3,165,000724,5633,889,5634,342,6101,277,0225,619,632 3,615,000629,6134,244,6134,812,4301,133,0195,945,449 3,469,529999,3334,468,8624,718,3721,452,8686,171,240 3,696,001 4,738,8621,042,8615,002,2241,444,0376,446,261 4,870,000266,1135,136,1136,239,614611,5926,851,206 2,013,5411,144,0713,157,6123,442,5711,430,9604,873,531 55,00020,41275,4121,554,536245,5111,800,047 60,00018,21278,2121,626,138178,4591,804,597 60,00015,81375,813524,204108,058632,262 65,00013,41278,412552,86784,187637,054 65,00010,81275,812576,70059,023635,723 70,0008,13178,131600,70932,678633,387 75,0005,15680,15675,0005,15680,156 45,0001,96946,96945,0001,96946,969 $31,426,556 $8,749,285 $40,175,841 $48,941,642$14,587,140$63,528,782 - 90 - 119 REGULATORY SECTION 120 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT REQUIRED BY OREGON STATE REGULATIONS Honorable Mayor and Council Members City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 We have audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of the City of Woodburn as of and for the year ended June 30, 2013, and have issued our report thereon dated November 14, 2013. Compliance and Other Matters 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 as follows: - 91 - 121 1.The City did not budget separately for current and delinquent property tax revenue. 2.The actual ending balances for the second preceding year did not equal the actual beginning balances for the first preceding year for the General and RSVP funds. 3.The budget does not list each bond or loan separately. This is required by ORS 294.352(7). 4.Expenditures exceeded appropriations, as detailed in the notes to the financial statements. OAR 162-10-0230 - Internal Control In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. Purpose of this Report This report is intended solely for the information and use of the board of council members 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 ACCOUNTANTS By: Thomas E. Glogau, A Shareholder November 14, 2013 - 92 - 122 WOODBURN URBAN RENEWAL AGENCY (A COMPONENT UNIT OF THE CITY OF WOODBURN, OREGON) ANNUAL FINANCIAL REPORT Year Ended June 30, 2013 123 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of WOODBURN, Oregon) AGENCY OFFICIALS June 30, 2013 MAYOR AND COUNCIL MEMBERS Name Term Expires Mayor Kathryn Figley December 31, 2014 601 S. Settlemeier Woodburn, Oregon 97071 Council Members Peter McCallum, President December 31, 2014 370 Ironwood Terrace Woodburn, Oregon 97071 Teresa Alonso Leon December 31, 2016 3009 Oxford Street Woodburn, Oregon 97071 Lisa Ellsworth December 31, 2016 798 Wilson Street Woodburn, Oregon 97071 Eric Morris December 31, 2016 1505 Hardcastle Avenue Woodburn, Oregon 97071 Jim Cox December 31, 2014 1530 Ranier Way Woodburn, Oregon 97071 Frank Lonergan December 31, 2014 nd 245 N 2 Street Woodburn, Oregon 97071 Staff Scott Derickson, City Administrator N. Robert Shields, City Attorney Christina Shearer, Finance Director City of Woodburn, Oregon 270 Mongomery Avenue Woodburn, Oregon 97071 124 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) TABLE OF CONTENTS June 30, 2013 Page INDEPENDENT AUDITOR’S REPORT i-ii MANAGEMENT’S DISCUSSION AND ANALYSIS iii-v BASIC FINANCIAL STATEMENTS Government-wide Financial Statement Statement of Net Position – Governmental Activities 6 Statement of Activities – Governmental Activities 7 Fund Financial Statements Balance Sheet – Governmental Funds 8 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 9 Notes to Basic Financial Statements 10-16 SUPPLEMENTARY INFORMATION Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Urban Renewal Debt Service Fund 17 Other Schedules Schedule of Property Tax Transactions 18 Schedule of Long-Term Debt Principal and Interest Transactions 19 COMPLIANCE SECTION Independent Auditor’s Report Required by State Regulations 20-21 125 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT Board of Directors City of Woodburn Urban Renewal Agency 270 Montgomery Street Woodburn, Oregon 97071 Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and each major fund of the Urban Renewal Agency of the City of Woodburn, Oregon (a component unit of the City of Woodburn, Oregon) as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. - i - 126 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Urban Renewal Agency of the City of Woodburn, as of June 30, 2013, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis (MD&A) (pages iii through v) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during or audit of the basics financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Agency’s basic financial statements. The supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. This information is the responsibility of management and was derived from and relates directly to, the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. Report on Other Legal and Regulatory Requirements In accordance with Minimum Standards for Audits of Oregon Municipal Corporations, we have issued our report dated November 14, 2013, on our consideration of the Agency’s compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS By: Thomas E. Glogau, A Shareholder November 14, 2013 - ii - 127 MANAGEMENT’S DISCUSSSION AND ANALYSIS 128 WOODBURN URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the Woodburn Urban Renewal Agency (the Agency), we offer readers of the Agency’s basic financial statements this narrative overview and analysis of the financial activities of the Agency as of June 30, 2013 and for the fiscal year then ended. We encourage readers to consider the information presented here in conjunction with the Agency’s basic financial statements in the financial section of this report. Financial Highlights The Agency’s net assets exceeded liabilities by $1,360,133. This is due to the continued retirement of the Agency’s outstanding debt. The Agency currently has two assets, cash and investments ($1,817,541) and receivables ($49,402). The Agency’s receivables are comprised solely of property taxes due at June 30, 2013. Liabilities are comprised of the balance on Agency debt of $486,381 and the accrued interest due at June 30, 2013 of $707. Statements of Net Position June 30, 20132012 ASSETS Cash and investments$1,817,541$1,590,160 Property tax receivable49,40250,956 Total Assets1,866,943 1,641,116 LIABILITIES Accounts payable 19,722 - Accrued interest payable 707 2 98 Noncurrent liablities Due within one year Bonds payable210,509 2 01,855 Due in more than one year Bonds payable275,872 4 86,381 Total Liabilities506,810 6 88,534 NET POSITION Unrestricted$1,360,133 $ 9 52,582 Property taxes totaling $625,577 comprise 99 % of the Agency’s revenue and are derived from the tax increment assessment within the Agency’s boundaries. The remaining revenue of $8,188 is from interest earnings. Expenses for the year ended June 30, 2013 were $26,287 for interest on long-term debt. Additionally, the Agency expended $65,183 on personnel costs and $134,744 on the Agency’s Downtown Grant and Loan program. The Agency’s maintains a single fund used to account for activities supported by the property tax increment. - iii - 129 Statements of Activities Year Ended June 30, 20132012 REVENUES Property taxes$625,577$ 614,590 Miscellaneous8,1886,485 Total Revenues633,765621,075 EXPENSES Personal services65,18344,006 Materials and services134,744107,284 Interest on long-term debt26,28734,091 Total Expenses226,214185,381 REVENUES OVER (UNDER) EXPENSES407,551435,694 NET POSITION, June 30952,582516,888 NET POSITION, June 30$1,360,133$ 952,582 Overview of the Basic Financial Statements The Agency’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Government-wide financial statements. The government-wide financial statements are comprised of the Statement of Net Position and the Statement of Activities. These two statements are designed to provide readers with a broad overview of the Agency’s finances utilizing the full accrual method of accounting, in a manner similar to a private-sector business. Under the full accrual method of accounting, transactions are reported as soon as the underlying event(s) giving rise to the change occurs, regardless of the timing of related cash flows. Thus, assets, liabilities, revenues and expenses are reported in these statements for some items that will only result in cash flows in future fiscal periods (i.e. uncollected revenues and accrued but unpaid interest). The Statement of Net Position presents information on all of the Agency’s assets and liabilities, including capital assets and long-term liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Agency as a whole is improving or deteriorating. The Statement of Activities present information showing how the Agency’s net position changed during the most recent fiscal year. Fund financial statements. The fund financial statements focus on current available resources and are organized on the basis of funds, each of which is defined as a fiscal and accounting entity with a self-balancing set of accounts established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. - iv - 130 Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 10-16. Financial Analysis of Funds As of June 30, 2013 the Agency’s governmental fund reported a fund balance of $1,802,069 or an increase of $206,989 over the prior year. This is due to tax revenues in excess of payments of the Agency for approved Downtown Grant and Loan projects and annual debt service. Budgetary Highlights There no changes to the adopted budget in the current year. Capital Assets and Debt Administration The Agency has no capital assets. All assets constructed with urban renewal funds are property of the City (see the City of Woodburn financial statements). As of June 30, 2013 the Agency has $486,381 of long-term debt outstanding. Additional information on the long- term debt can be found in the notes to the basic financial statements. Financial Contact The Agency’s financial statements are designed to present users (citizens, taxpayers, customers, investors and, creditors) with a general overview of the Agency’s finances and to demonstrate the Agency’s accountability. Any questions or request for additional information should be directed to the Agency’s Finance Director at 270 Montgomery Street, Woodburn, Oregon. - v - 131 BASIC FINANCIAL STATEMENTS 132 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) STATEMENT OF NET POSITION – GOVERNMENTAL ACTIVITIES JUNE 30, 2013 ASSETS Cash and investments$1,817,541 Property taxes receivable49,402 Total Assets1,866,943 LIABILITIES Accounts payable19,722 Accrued interest payable707 Noncurrent liablities Due within one year Bonds payable210,509 Due in more than one year Bonds payable275,872 Total Liabilities506,810 NET POSITION Restricted$1,360,133 The accompanying notes are an integral part of the financial statements. - 6 - 133 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) STATEMENT OF ACTIVITIES – GOVERNMENTAL ACTIVITIES YEAR ENDED JUNE 30, 2013 Revenues Taxes and assessments$625,577 Miscellaneous8,188 Total Revenues 633,765 Expenses Community development199,927 Debt service interest26,287 Total Expenses 226,214 CHANGE IN NET POSITION 407,551 NET POSITION, June 30, 2012 952,582 NET POSITION, June 30, 2013 $1,360,133 The accompanying notes are an integral part of the financial statements. - 7 - 134 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) BALANCE SHEET – GOVERNMENTAL FUNDS JUNE 30, 2013 Urban Renewal Debt Service Fund ASSETS Cash and investments $ 1,817,541 Property taxes receivable49,402 Total Assets $ 1,866,943 LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES Liabilities Accounts payable $ 19,722 Deferred Inflows Deferred revenue45,152 Fund Balances Restricted Urban Renewal1,802,069 Total Liabilities, Deferred Inflows, and Fund Balances $ 1,866,943 RECONCILIATION TO THE STATEMENT OF NET POSITION Fund Balances$1,802,069 The Statement of Net Position reports receivables at their net realizable value. However, receivables not available to pay for current-period expenditures are deferred in governmental funds.45,152 All liabilities are reported in the Statement of Net Position. However, if they are not due and payable in the current period, they are not recorded in governmental funds. Bonds payable(486,381) Accrued interest payable(707) Net Position of Governmental Activities$1,360,133 The accompanying notes are an integral part of the financial statements. - 8 - 135 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Urban Renewal Deb t ervice Fund S REVENUES Taxes and assessments$626,461 Miscellaneous8,188 Total Revenues634,649 XPENDITURES E Current Personal services65,183 Materials and services134,744 Debt service Principal201,856 Interest25,877 Total Expenditures427,660 REVENUES OVER (UNDER) EXPENDITURES 206,989 FUND BALANCE, Beinnin oea ggfyr1,595,080 FUND BALANCE, End of year $1,802,069 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Net Change in Fund Balance$206,989 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the fund financial sttements as follows: Property taxes (884) Bond proceeds provide current financial resources to governmental funds, but issuing debt increses long-term liabilities in the statment of net position. Reapayment of long-term debt obligations principal is an expenditure in the governmental funds, but the repayment reduces long-term obligaions in the statement of net position. This is the amount of repay- ments in the current year.201,856 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in government funds. (410) Change in Net Position$407,551 The accompanying notes are an integral part of the financial statements. - 9 - 136 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity The City of Woodburn Urban Renewal Agency (Agency) was created to provide for rehabilitation of blighted and deteriorated areas within the City’s designated urban renewal areas. Through the Downtown Grant and Loan program the Agency enables property owners to rehabilitate properties. The Agency is governed by a seven- member board of directors that include the City’s mayor and other council members and is included as a component unit in the City’s financial statements. Urban Renewal Areas Tax Allocation Bonds for urban renewal plan areas are authorized by state law to 1) “…eliminate and prevent the development or spread of urban blight and deterioration; and 2) encourage needed urban conservation and rehabilitation and provide for redevelopment of blighted or deteriorated areas.” Projects are financed in urban renewal plan areas as follows: The Agency (City Council) selects an urban renewal plan area and defines its boundaries. The County Assessor “freezes” the assessed value of property within the urban renewal area. This is referred to as the “frozen” value. Any increase in assessed value above the frozen value is called the “incremental value.” The tax revenue generated by the tax rate times the incremental value is provided for use in paying the principal and interest on any indebtedness incurred to finance the Urban Renewal Project. Urban Renewal Tax Increment revenues are used to repay the indebtedness of the Agency. The proceeds of the indebtedness finance the Agency’s activities. As required by ORS 457.190(3)(a), the Agency has included in its current plan the maximum amount of indebtedness that may be issued or incurred under the plan in the amount of $29,300,000. Measurement Focus and Basis of Accounting Basic Financial Statements Basic financial statements are presented at both the government-wide and fund financial level. Governmental activities are normally supported by taxes and intergovernmental revenues. Government-wide financial statements display information about the reporting government as a whole. These statements focus on the sustainability of the Agency 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. The Statement of Net Position presents all the assets and liabilities of the Agency, including capital assets and related debt. Net position, representing assets less liabilities and is shown as restricted. Restricted represents amounts which must be spent in accordance with legal restrictions. - 10 - 137 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Measurement Focus and Basis of Accounting (Continued) Basic Financial Statements (Continued) The Statement of Activities indicate how the net assets changed during the current period. Fund financial statements display information about the Agency’s fund. The single major fund, Urban Renewal Debt Service fund, accounts for general administration of the Agency’s urban renewal areas, for acquisition and rehabilitation of blighted and deteriorated areas within the designated urban renewal areas, and repayment of debt incurred for these activities. Basis of Presentation The financial transactions of the Agency are recorded in a single fund. The fund’s activity is accounted for by providing a separate set of self-balancing accounts that comprises its assets, liabilities, fund equity, revenues and expenditures. Fund Balance In the fund financial statements, the fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the Agency is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Although not a major impact on the financial statements, Governmental Fund type fund balances are now reported in the following classifications. Fund balance is reported as non-spendable when the resources cannot be spent because they are either in a non- spendable form or legally or contractually required to be maintained intact. Resources in non-spendable form include inventories, prepaid amounts, deposits, and assets held for sale. Fund balance is reported as restricted when the constraints placed on the use of resources are either: (a) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Fund balance is reported as committed when the Agency takes formal action that places specific constraints on how the resources may be used. The Agency can modify or rescind the commitment at any time through taking a similar formal action. Resources that are constrained by the Agency’s intent to use them for a specific purpose, but are neither restricted nor committed, are reported as assigned fund balance. Intent is expressed when the Agency approves which resources should be “reserved” during the adoption of the annual budget. Unassigned fund balance is the residual classification. This classification represents fund balance that has not been restricted, committed or assigned. - 11 - 138 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Measurement Focus and Basis of Accounting Accounting principles generally accepted in the United States of America, as promulgated by the Governmental Accounting Standards Board, define principles that should be used to report financial transactions. The government-wide and proprietary fund financial statements are reported using the economic resources and accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when the liability is incurred. The governmental fund financial statements are reported using the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are recorded when they become both measurable and available, while expenditures are recorded when the related liability is incurred. Cash and Investments The City of Woodburn maintains the Agency’s cash and investments in a common pool. Oregon Revised Statutes and the City of Woodburn investment policy authorize the City to invest in certificates of deposit, savings accounts, bank repurchase agreements, bankers’ acceptances, general obligations of U.S. Government and its agencies, certain bonded obligations of Oregon Municipalities and the State Treasurer’s Local Government Investment Pool, among others. Investments are stated at cost, which approximates fair value. Receivables and Deferred Revenues Property taxes are levied by the County Assessor and collected by the County Tax Collector. The taxes are levied and become a lien as of July 1. They may be paid in three installments payable in equal payments due November 15, February 15, and May 15. Uncollected property taxes levied for the current and prior years are recorded as receivable at year-end. The Agency’s property tax collection records show that most of the property taxes due are collected during the year of levy and delinquent taxes are collected in the next few years. Property tax receivables not available are recognized as deferred inflows in the governmental funds balance sheet. Long-Term Debt All unmatured long-term debt is recorded on the Statement of Net Position. Urban Renewal Agency bonded debt is paid from the Urban Renewal Agency Debt Service Fund. Budget and Budgetary Accounting The Agency budgets in accordance with requirements of State law. Annual appropriated budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The Agency begins its budgeting process by appointing budget committee members. The budget officer prepares a budget, which is reviewed by the Budget Committee. The budget is then published in proposed form and is presented for public hearings to obtain taxpayer comments and approval from the Budget Committee. The budget is legally adopted by the Agency’s Board by resolution prior to the beginning of the Agency’s fiscal year. - 12 - 139 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Budget and Budgetary Accounting (Continued) The Board resolution authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. Appropriations are made at the object level. Appropriations lapse at year end. Appropriation authority may be transferred from one level of control to another by Board resolution. Supplemental appropriations may occur if the Board approves them due to a need which exists which was not determined at the time the budget was adopted. There were no changes to the adopted budget in the current year. Use of Estimates The preparation of basic financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the basic financial statements and reported amounts of revenues and expenses/expenditures during the reporting period. Actual results may differ from those estimates. CASH AND INVESTMENTS The Agency’s deposits with financial institutions and investments and are pooled with the City of Woodburn. Cash and investments for the City of Woodburn are disclosed in the City’s financial statements. Other disclosures about the City’s cash and investment that are applicable to the Agency are as follows. Deposits Bank deposits are secured to legal limits by federal deposit insurance. The remaining amount is secured in accordance with ORS 295 under a collateral program administered by the Oregon State Treasurer. 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 unlimited insurance for the City’s deposits with financial institutions for the aggregate of all non-interest bearing accounts and up to $250,000 for the aggregate of all interest bearing accounts at each institution. Deposits in excess of FDIC coverage are with institutions participating in the Oregon Public Funds Collateralization Program. 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. - 13 - 140 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 CASH AND 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, 2013, 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 risk evaluation. LGIP is not rated for credit quality. 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 City manages its exposure to declines in fair value of its investments by limiting the weighted average maturity of its investments through use of the Local Government Investment Pool. 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. 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-load 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. 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. - 14 - 141 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 LONG-TERM DEBT Long-term debt transactions for the year were as follows: OutstandingMatured/Outstanding July 1, RedeemedJune 30,Due Within 2012IssuedDuring Year2013One Year 2005 Urban Renewal Bonds due in quarterly installments with $ 688,236 $ - $ (201,855) $ 486,381 $ 201,855 interest at 4.22% Future debt service requirements are as follows: Fiscal Year nding E une 30,rincipalInteresTotal JPt 2014$210,509 $ 1 7,223$ 227,732 2015219,534 8 ,198 227,732 201656,338 595 56,933 $486,381$26,016 $ 512,397 CONTINGENCIES The Agency 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. NEW PRONOUNCEMENTS GASB Statement No. 61 “The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34.” This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. This Statement also amends the criteria for reporting component units as if they were part of the primary government. The statement was implemented in the current year. GASB Statement No. 62 “Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements.” The objective of this Statement is to incorporate into GASB's authoritative literature certain accounting and financial reporting guidance that were issued on or before November 30, 1989, which do not conflict with or contradict GASB pronouncements. The statement was implemented in the current year. - 15 - 142 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 NEW PRONOUNCEMENTS (continued) GASB Statement No. 63 “Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.” The statement provides guidance for reporting deferred outflows of resources, deferred inflows of resources, and net position in a statement of financial position. The statement was implemented in the current year. GASB Statement No. 65 “Items Previously Reported as Assets and Liabilities.” The statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. The statement was implemented in the current year. The Agency will implement new GASB pronouncements no later than the required fiscal year. Management has not determined the effect on the financial statements from implementing any of the pronouncements. GASB Statement No. 68 “Accounting and Reporting for Pension Plans—an amendment of GASB Statement No. 27.” The statement establishes accounting and financial reporting requirements related to pensions provided by governments. The statement is effective for fiscal years beginning after June 15, 2014. GASB Statement No. 69 “Government Combinations and Disposals of Government Operations.” The statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. The statement is effective for fiscal years beginning after December 15, 2013. GASB Statement No. 70 “Accounting and Financial Reporting for Nonexchange Financial Guarantees.” The objective of the statement is to improve accounting and financial reporting by State and local governments that extend and receive nonexchange financial guarantees. The statement is effective for fiscal years beginning after June 15, 2013. SUBSEQUENT EVENTS Management has evaluated subsequent events through November 14, 2013, 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. - 16 - 143 SUPPLEMENTARY INFORMATION 144 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL - URBAN RENEWAL DEBT SERVICE FUND YEAR ENDED JUNE 30, 2013 Budgeted Amounts OriginalFinalActualVariance REVENUES Taxes and assessments$550,000 $550,000 $626,461 $76,461 Miscellaneous3,000 3,000 5,188 8,188 Total Revenues 553,000 553,000 634,649 81,649 EXPENDITURES Current Personal services 79,891 79,891 14,708 65,183 Materials and services 4,298,644 4,298,644 4,163,900 134,744 Debt service Principal251,855251,855201,856 49,999 Interest375,877375,87725,877 350,000 Contingency1,026,7331,026,733 1,026,733- Total Expenditures 6,033,000 6,033,000 5,605,340 427,660 REVENUES OVER (UNDER) EXPENDITURES (5,480,000)(5,480,000) 5,686,989 206,989 OTHER FINANCING SOURCES (USES) Proceeds from issuance of debt 4,000,000 4,000,000 -(4,000,000) NET CHANGE IN FUND BALANCE (1,480,000)(1,480,000) 1,686,989 206,989 FUND BALANCE, Beginning of year 1,480,0001,480,0001,595,080 115,080 FUND BALANCE, End of year $- $ $1,802,069- $1,802,069 - 17 - 145 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) SCHEDULE OF PROPERTY TAX TRANSACTIONS YEAR ENDED JUNE 30, 2013 UncollectedUncollected 2012-13BalanceDiscounts &Balance Tax YearLevyJuly 1, 2012AdjustmentsTurnoversJune 30, 2013 2012-2013642,505$ $ -$ (18,886)$ (601,499)$ 22,120 2011-2012 - 22,737 (1,012) (10,582) 11,143 2010-2011 - 11,935 (340) 7,037(4,558) 2009-2010 - 7,097 (347) (4,284) 2,466 2008-2009 - 2,523 (25) (1,753) 745 2007-2008 - 585 (27) (128) 430 2006-2007 - 319 (16) (48) 255 Prior Years - 1,039 (16) (67) 956 Total$ 642,505$ 46,235$ (20,669)$ (622,919) 45,152 Unsegregated Taxes 4,250 Total Receivable at June 30$49,402 - 18 - 146 URBAN RENEWAL AGENCY OF THE CITY OF WOODBURN, OREGON (A Component Unit of the City of Woodburn, Oregon) SCHEDULE OF LONG-TERM DEBT PRINCIPAL AND INTEREST TRANSACTIONS YEAR ENDED JUNE 30, 2013 Outstanding Outstanding Interest Date ofFiscal Year July 1,June 30, RatesIssueof Maturity2012IssuedPaid2013 PRINCIPAL TRANSACTIONS 2005 Urban Renewal Bonds 4.22%20052015-16 $ 688,236$ $ -(201,855)$ 486,381 Unmatured Unmatured Interest Date ofInterestNewInterestInterest RatesIssue July 1, 2012IssuesPaid June 30, 2013 INTEREST TRANSACTIONS 2005 Urban Renewal Bonds 4.22%2005 $ 51,893$ (25,877)-$ $ 26,016 - 19 - 147 OMPLIANCE SECTION C 148 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT REQUIRED BY OREGON STATE REGULATIONS Honorable Mayor and Members of the City Council City of Woodburn Urban Renewal Agency 270 Woodburn, Oregon Woodburn, Oregon 97071 We have audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of the Urban Renewal Agency of the City of Woodburn, Oregon as of and for the year ended June 30, 2013, and have issued our report thereon dated November 14, 2013. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Urban Renewal Agency of the City of Woodburn, Oregon's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations, noncompliance with which could have a direct and material effect on the determination of financial statements amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. We performed procedures to the extent we considered necessary to address the required comments and disclosures which included, but were not limited to the following: Deposit of public funds with financial institutions (ORS Chapter 295). Indebtedness limitations, restrictions and repayment. Budgets legally required (ORS Chapter 294). Insurance and fidelity bonds in force or required by law. Programs funded from outside sources. Authorized investment of surplus funds (ORS Chapter 294). Public contracts and purchasing (ORS Chapters 279A, 279B, 279C). In connection with our testing nothing came to our attention that caused us to believe the Agency 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 the Agency did not separately budget current year and prior year collections of property taxes. - 20 - 149 OAR 162-10-0230 - Internal Control In planning and performing our audit of the financial statements, we considered the Agency's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances 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 Agency's internal control. Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control. Restriction on Use This report is intended solely for the information and use of the governing body and management of the Urban Renewal Agency of the City of Woodburn, Oregon and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS By: Thomas E. Glogau, A Shareholder November 14, 2013 - 21 - 150 151 152 COUNCIL MEETING MINUTES October 28,2013 DATECOUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF 0:00 MARION, STATE OF OREGON, OCTOBER 28, 2013. CONVENED The meeting convened at 7:03 p.m. with Mayor Figley presiding. ROLL CALL Mayor Figley Present Councilor Cox Present Councilor Lonergan Present Councilor McCallum Present Councilor Morris Present Councilor Ellsworth Present Councilor Alonso Leon Present Staff Present: City Administrator Derickson, City Attorney Shields, Interim Public Works Director Scott, Community Services Director Row, Economic and Development Director Hendryx, Finance Director Shearer, Captain Garrett, Captain Alexander, Urban Renewal Manager Stowers, Communications Coordinator Horton, Executive Legal Assistant Veliz ANNOUNCEMENTS 0:00 A.City Hall and the Library will be closed on November 11 in observance of Veterans Day. The Aquatic Center will be open normal hours. B.Due to the Veterans Day holiday, the City Council meeting scheduled for Monday, November 11 will be cancelled. Mayor Figley announced that the City Council meeting scheduled for December 23 has been cancelled. C.The annual Downtown Trick or Treating event is scheduled to take place in the Downtown Plaza from 3:30 pm – 5:00 pm on October 31. Various games, contests, and activity stations will be set up for all to enjoy. Rain or shine. D.The City of Woodburn will continue its Fall Leaf Program this year to provide residents assistance with disposal of collected leaves. The leaf drop-off site is on Second Street between Lincoln and Grant Streets behind the Post Office. The site will be open from November 1 through December 31, Monday through Friday, 8:00 am - 4:00 pm and Saturday 9:00am - 1:00 pm, closed Sundays and Holidays. PROCLAMATIONS/PRESENTATIONS 0:03 Proclamations A.Domestic Violence Awareness Month-Walt Beglau, Marion County District Attorney spoke about Domestic Violence Awareness and introduced Jane Downing of Mid-Valley Crisis and Kim Larsen from the District Attorney’s Office. Jane Downing provided information on the Mid-Valley crisis center. Page 1 - Council Meeting Minutes,October 28, 2013 153 COUNCIL MEETING MINUTES October 28,2013 B.National Magic Week Presentations Craig Realty Donation- C.Lorrayne Jenningsand Carol Jennings Williams, wife and daughter of the late Dick Jennings, presented a check for $25,000 to Woodburn Proud from Craig Realty Group to facilitate the funds through the Settlemier Teen Center in honor of Dick's community efforts. Kelly Long of Woodburn Proud then presented the check to Sue Bloom and Halie Peplinski of the Boys and Girls Club. D.Consideration of an Economic Improvement District-Robyn Stowers, Urban Renewal Manager provided information on Economic Improvement Districts. Councilor Cox stated he feels this has great possibilities but the City needs to talk to merchants about it if they haven’t already and get a feel for whether or not it is something they want. City Administrator Derickson stated that they will work on getting the word out to businesses. Mayor Figley stated that we are interested in pursuing this. City Administrator Derickson stated that they will bring back a draft ordinance. CONSENT AGENDA 0:46 A. Woodburn City Council minutes of October 14, 2013, B. Woodburn Public Library Board minutes of October 9, 2013, C. Woodburn Recreation and Park Board minutes of October 8, 2013, D. Crime Statistics through September 2013. McCallum/Ellsworth … adopt the Consent Agenda. The motion passed unanimously. PUBLIC HEARING 0:47 A Public Hearing to consider the City of Woodburn’s 2013-14 Supplemental Budget Request. Mayor Figley declared the hearing open at 7:50 pm for the purpose of hearing public input on the City’s 2013-14 Supplemental Budget Request.Finance Director Shearer provided a staff report. No members of the public wished to speak in either support or opposition of the 2013- 14 Supplemental Budget Request. Councilor Ellsworth disclosed her involvement with the Ford Foundation Leadership program and that she is heading the fundraising for the project. Mayor Figley declared the hearing closed at 7:59 pm. COUNCIL BILL NO. 2939 – A RESOLUTION APPROVING TRANSFERS OF FY 0:59 2013-2014 APPROPRIATIONS AND APPROVING A SUPPLEMENTAL BUDGET McCallum introduced Council Bill 2939. Executive Legal Assistant Veliz read the bill by title only since there were no objections from the Council. On roll call vote for final passage, the bill passed unanimously. Mayor Figley declared Council Bill No. 2939 duly passed. AWARD OF CONSTRUCTION CONTRACT FOR I-5 INTERCHANGE SANITARY 1:00 SEWER RELOCATIONS –HWY 214, LAWSON AVENUE, AND EVERGREEN ROAD PROJECT, BID NO. 2014-03 Page 2 - Council Meeting Minutes,October 28, 2013 154 COUNCIL MEETING MINUTES October 28,2013 Cox/McCallum… that the City Council, acting in its capacity as the City Contract Review Board, award the construction contract for the I-5 Interchange Sanitary Sewer Relocations – Hwy 214, Lawson Avenue, and Evergreen Road project to Gelco Construction Co. in the amount of $415,288.80. The motion passed unanimously. AWARD OF CONSTRUCTION CONTRACT FOR 2013 SEWER AND STORM 1:01 COLLECTION SYSTEM IMPROVEMENTS, BID NO. 2013-15 Cox/Morris… that the City Council, acting in its capacity as the City Contract Review Board, award the construction contract for the 2013 Sewer and Storm Collection System Improvements project to K & E Excavating, Inc. in the amount of $186,990.00. The motion passed unanimously. CITY ADMINISTRATOR’S REPORT 1:02 The City Administrator had nothing to report. MAYOR AND COUNCIL REPORTS 1:02 Councilor Morris reminded people to stay safe on Thursday and look out for Trick-or- Treaters. EXECUTIVE SESSION 1:02 Mayor Figley entertained a motion to adjourn into executive session under the authority of Lonergan /Morris ORS 192.660 (2)(i). …to move into executive session. The Council adjourned to executive session at8:02 pm and reconvened at 8:53 pm. Mayor Figley stated that no action was taken by the Council while in executive session. ADJOURNMENT 1:53 Lonergan /McCallum …. meeting be adjourned. The motion passed unanimously. The meeting adjourned at 8:53 pm. APPROVED KATHRYN FIGLEY, MAYOR ATTEST Heather Pierson,City Recorder City of Woodburn, Oregon Page 3 - Council Meeting Minutes,October 28, 2013 155 EXECUTIVE SESSION COUNCIL MEETING MINUTES OCTOBER 28, 2013 DATE.CONFERENCE ROOM, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON,OCTOBER 28, 2013. CONVENED. The Council met in executive session at 8:02 p.m. with Mayor Figley presiding. ROLL CALL. Mayor FigleyPresent Councilor Cox Present Councilor Lonergan Present Councilor McCallumPresent Councilor MorrisPresent Councilor Alonso Leon Present Councilor Ellsworth Present Staff Present: Executive Legal Assistant Veliz, City AdministratorDerickson Media Present: Jeff McDonald Mayor Figleyreminded Councilors. media and staff that information discussed in executive session is not to be discussed with the public. The executive session was called to: To review and evaluate, pursuant to standards, criteria and policy directives adopted by the governing body, the employment-related performance of the chief executive officer of any public body, a public officer, employee or staff member unless the person whose performance is being reviewed and evaluated requests an open hearing pursuant to ORS 192.660 (2)(i). ADJOURNMENT. The executive session adjourned at 8:52 p.m. APPROVED_______________________________ KATHRYN FIGLEY, MAYOR ATTEST_______________________________ Heather Pierson,CityRecorder City of Woodburn, Oregon Page1 – Executive Session, Council Meeting Minutes, October 28, 2013 156 157 158 159 Agenda Item November 25, 2013 TO:Honorable Mayor and City Council FROM:N. Robert Shields, City Attorney Scott Russell, Chief of Police SUBJECT: Medical Marijuana Dispensaries : RECOMMENDATION Receive the report. BACKGROUND: On August 14, 2013 the Governor signed HB3460(providing formedical marijuana dispensaries) into law.The provisions of the law that authorize the Oregon Health Authorityto register medical marijuana facilities under its administrative rules do not go into effect until March 1, 2014. HB3460 will allow medical marijuana dispensaries to be sited under certain restrictions in commercial and agricultural zones and directs the Oregon Health Authority to develop rules to regulate such dispensaries. The law provides little direction to local governments on how to effectively manage community expectations for safety, security, and livability with the opening of these dispensaries. Community concerns regarding such dispensaries in other states have included their proximity to other businesses and services that could be fundamentally at odds with the dispensaries including such things as; child care/playgrounds, religious facilities, drug/alcohol treatment centers, existing high drug/crime areas, civic services, etc. The statute only restricts their placement within1,000 feet of a school or another dispensary. Public safety concerns with dispensaries in other states have included the potential for, and actual occurrence of, armed robberies and assaults over drugs and money located at the dispensaries, illegal sales of drugs to non- medical users, and extortion of dispensary owners/operators by criminal organizations. HB3460 has limited provisions requiring additional security provisions for dispensaries. Agenda Item Review:City Administrator __x____City Attorney ___x___Finance __x___ 160 Honorable Mayor and City Council November 25,2013 Page 2 DISCUSSION: While we are unaware of any existing plans to site a medical marijuana dispensary in Woodburn at this time, we anticipate that there will be such efforts at numerous locations throughoutthe state after the law and administrative rules are in effect. To mitigate these issues, some Oregon communities have enacted, or are considering, local ordinances.Medford has, in effect, banned medical marijuana dispensaries by taking the position that it will not issue business licenses to them because they are in violation of federal law. Medford has already revoked the business licenses of several businesses that it said were dispensing marijuana. On November 5, 2013, the Legislative Counsel to the Oregon Legislature issued an opinion concluding that any local law (i.e., a city ordinance) that prevents or materially restricts medical marijuana facilities is preempted (i.e., overridden) by the Oregon state law: In light of the legislative history, we believe that a local law that prevents or materiallyrestricts the operation of medical marijuana facilities would stand as an obstacle to theaccomplishment and execution of the purposes and objectives of HB 3460 and would therefore be preempted. A local law that restricts medical marijuana facilities by imposing different criteriafrom criteria affirmatively established in HB 3460 would also conflict with the purposes andobjectives of HB 3460 and therefore be preempted. While it is true that an opinion of Legislative Counsel is not legally binding on Oregon cities, it will certainly be cited by proponents of HB3460as compelling authority when local ordinances are challenged in court. On the other hand, despite the Legislative Counsel’s opinion, the League of Oregon Cities continues to maintainthat municipal authority exists toregulate in this area. The legal issues of whether any local ordinance would conflict with state law and whether HB 3460 conflicts with federal law places the City in a difficult position as we seek to protect the safety of our citizens. We anticipate litigation over ordinances such as Medford's and will track the outcome in order to better advise the City Council. Most Oregon cities have not enacted any ordinances in regard to medical marijuana dispensariesand will be relying on the state statute and the 161 Honorable Mayor and City Council November 25,2013 Page 3 administrative rules adopted under it to regulate the dispensaries. The Oregon Health Authority has a Medical Marijuana Dispensary Law Advisory Committee toassist it in drafting the new administrative rules. Local public officials on this committee include the Lincoln County District Attorney, the Yamhill County Sheriff and the Corvallis Chief of Police. : FINANCIAL IMPACT None from this informational report. Attachments: Exhibit A - HB 3460 Exhibit B - Newspaper Articles Exhibit C - Legislative Counsel Opinion 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 Agenda Item November 25, 2013 TO:Honorable Mayor and City Council through the City Administrator FROM:Jim Hendryx, Director of Economic & Development Services SUBJECT: Annual Review of the Woodburn Development Ordinance (WDO) RECOMMENDATION: Adopt the attached resolution initiating consideration of revision of temporary signagestandards in the commercial and industrial zonesand updating the Planned Unit Development (PUD) standards. BACKGROUND: The Woodburn Development Ordinance (WDO) states: TheDirector should maintain a list of “1.01.02 Annual Review of the WDO potential modifications of the WDO, due to new state or federal laws and rules, case law precedents, scrivener errors, interpretation, or other changes in circumstance. The Director should report these matters to the City Council at its first regular meeting in the month of November, so that the Council may consider initiating appropriate measures to modify the WDO.” After public input during the City Council discussions regarding the WDO rewrite (LA 2012-01), the Planning Commission was directed to further consider fence standards (Section 2.106), specifically front yard height limitations. The Commission was also asked to look at temporary commercial sign standards (Section 3.10), and to review and update the Planned Unit Development (PUD) standards (Section 3.109), which are dated and provide limited flexibility. These matters have now been discussed at the Planning Commission and a formal action by the City Council (i.e., adoption of the attached resolution) is necessary to initiate the WDO legislative amendments. Agenda Item Review:City Administrator ___x___City Attorney ___x___Finance __x___ 189 Honorable Mayor and City Council November 25, 2013 Page 2 DISCUSSION: With regards to fences, standards limit fence height to 42 Fence Standards inches at the property line. Fence height increases 12 inches for every 6 feet removed from the property line (see diagram), with a maximum height of 7 feet. The City continues to receive complaints about this standard, particularly for corner or through lots, with citizens being concerned about the perceived lack of rear yard privacy. The Commission considered modifying the standard allowing taller fences at the property line, but in the end did not recommend any changes. Commissioners voiced concern over potentially creating fenced corridors, with six foot fences on both sides of the street, immediately behind the sidewalk. Incidentally, hedges and tall vegetation are allowed adjacent to the sidewalk, provided vision areas are maintained. 190 Honorable Mayor and City Council November 25, 2013 Page 3 With the update of the sign standards (Section Temporary Commercial Signs 3.10) in 2010, the provision for temporary signs in non-single family zones (such as real estate signs) was not factored into the ordinance. Signs are not allowed on unimproved properties. Secondly, in the cases of large commercial/industrial properties, such as Safeway, Mid-Valley Plaza, etc, only one free-standing sign is allowed per frontage. Furthermore, temporary signs are only allowed for short periods of time (maximum of 60 days). Commercial real estate signs are typically larger (32 –96 sq. ft.) and taller than other types of temporary signs allowed by code and remain for longer periods of time. There are several instances in the community where current commercial real estate signs are illegally placed. The Planning Commission discussed temporary signs and voiced concern over the current allowed limits in overall size, number, placement and enforcement. There was consensus to revise the temporary sign standards to address the need for temporary signs (real estate), while further limiting the size and number of temporarysigns in non-residential zones. Potential modifications would involve extensive outreach and possible notice to all commercially and industrially zoned property. Planned Unit Developments (PUD) In finalizing the WDO revisions, staff requested additional time to update the standards for Planned Unit Developments (Section 3.09). The current standards are difficult to administer and provide few incentives. The Commission is reviewing the PUD standards and will forward recommendations once they are completed. Summary The Planning Commission conducted workshop meetings where they considered present fence standards, temporary sign standards and standards for PUD’s. The Commission does not see the need to amend the current fence standards. The existing standards are adequate and other methods (shrubs) are available to address privacy without modifying the current fence provisions. The Commission is concerned over the allowed size and number of temporary signs. While recognizing the need to allow temporary signs (such as real estate) in commercial and industrial zones, further limitations 191 Honorable Mayor and City Council November 25, 2013 Page 4 are needed to regulate the number and size of temporary signs. Amending the existing sign standards is a major undertaking, requiring public notice, etc. The Commissioncontinues to evaluate amendments to the PUD standards. Staff will work with the Commission on potential amendments. Staff is requesting direction from Council to work with the Planning Commission to modify the temporary sign standards, limiting the allowable number and size of temporary signs in commercial and industrial zones. Secondly, staff will continue to work with the Commission on revising the PUD standards. FINANCIAL IMPACT: Revisions to the WDO limiting or restricting use of property require Measure 56 notice to all impacted properties, which was not budgeted in the current budget. The recent update to the WDO necessitated notice to all property owners, costing approximately $2,400 for mailing-related costs. Costs will be refined as the scaleof the revisions are narrowed. 192 COUNCIL BILL NO. 2940 RESOLUTION NO.2036 A RESOLUTION INITIATING CONSIDERATION OF LEGISLATIVE AMENDMENTS TO THE WOODBURN DEVELOPMENT ORDINANCE FOR THE YEAR 2013-14 Section 1.101.02 of the Woodburn Development Ordinance WHEREAS, (WDO) requires the Community Development Director to maintain a list of potential administrative modifications to the WDO and report these to the City Council on an annual basis; and ,during work sessions with the Planning Commission, the WHEREAS Commissionidentified the need to revise temporary signage standards in the commercial and industrial zones and to continue to work on updating the Planned Unit Development (PUD) standards; and , Section 4.01.09of the WDOstates thatthe City Council may WHEREAS initiate the consideration of any potential legislative amendments to the WDO by resolution; , NOW, THEREFORE THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Pursuant to Section 4.101.09of the WDO, the City Council initiates Section 1. consideration of thefollowingpotential legislative amendments to the WDO: A.Revision of temporary signage standards in the commercial and industrial zones. B.Updating the Planned Unit Development (PUD) standards. Approved as to form: City AttorneyDate Approved: Kathryn Figley, Mayor Passed by the Council Submitted to the Mayor Approved by the Mayor Council Bill No. 2940 Page 1- Resolution No. 2036 193 Filed in the Office of the Recorder ATTEST: Heather Pierson, City Recorder City of Woodburn, Oregon Council Bill No. 2940 Page 2- Resolution No. 2036 194 Agenda Item November 25, 2013 TO:Honorable Mayor and City Council through City Administrator FROM: Jim Hendryx, Directorof Economic & Development Services SUBJECT: Expansion of the Woodburn Enterprise Zone RECOMMENDATION: Direct staff to proceed with the next steps to considerexpanding the Woodburn Enterprise Zone to include the City of Gervais. BACKGROUND: The Gervais City Council (Attachment A)recently requested that Woodburn consider expanding the boundaries of its enterprise zone toinclude Gervais. The City of Woodburn was designated as an Enterprise Zone(EZ) inJuly 2010. The EZ programprovides important tools for communities to utilize in retaining and attracting new employers, while supporting thestrategy of creating more local employment opportunities for residents.EZ’s encourage business investment through property tax relief. In exchange for locating or expanding a business in an enterprise zone, eligible (generally non-retail) businesses receive total exemption from the property taxes normally assessed on new plants and equipment for a specified amount of time, which varies between the different community programs. Eligible businesses includemanufacturers, processors, shippers and a variety of operations that serve other organizations, as well as call centers and headquarter-type facilities. Generally, construction, financial and retail activities are ineligible. EZ’sprovide special economictools that communities can use to help existing businesses be successful, while also attracting new businesses to the community. Statewide, the program has been very successful in assisting existing businesses. Thousands of jobs have been created as a direct result of the program. Facebook, which decided to locate a facility in Prineville, Oregon, is one such example. Agenda Item Review:City Administrator ___x___City Attorney ___x___Finance __x___ 195 Honorable Mayor and City Council November 25, 2013 Page 2 Statewide, there is a total of 64EZ’s, which include bothrural (smaller cities, including Woodburn, Silverton, etc.) and urban zones (larger cities, such as Medford, Hillsboro, Beaverton, etc). Statutorily, the number of EZ’s is limited to a total of 64 zones within the state.Locally, thecities of Salem, Silverton, Molalla, Stayton, Donald, Hubbard, and Auroraare within designated EZ’s. Mt Angel recently requested inclusion into the Silverton EZ.Gervais is one of the few local cities not within an EZ. State statute establishes standards for designating and/or expanding established EZ’s,including size limitations, income and unemployment levels. While the total number of EZ’s islimited, expansionof existing zones is limited by size (12 square miles). Woodburn’s EZ, whichincludes the entire city limits, totals approximately 5.2 squaremiles. Gervais, which has similar income levels, totals approximately .39squaremiles. DISCUSSION: State statute establishes procedures and standards for expanding established EZ’s, including size limitations,income, unemployment levels, etc. Expanding Woodburn’s EZ boundary to include Gervais appears to qualify with state requirements.Procedurally, additional steps would include: Determining what areas would be added (the entire City of Gervais); Determining the local Zone Manager (Jim Hendryx); Adopting resolutions supporting the expansion of the EZ to include both Woodburn & Gervais; Informational meetings with taxing districts (Woodburn& Gervais); Giving notice to all local taxing districts of a public hearing regarding the proposed expansion (Woodburn); Holding a public hearing to consider the expansion of EZ boundaries (WoodburnCity Council); Submitting the expansion proposalto Business Oregon (Woodburn). Administering theEZ program involves consultationwith potential applicants; explaining benefits,procedures and requirements. Consultation typically only involves a few hours of time and is beneficial in buildingpositive interactions with business owners and their representatives, while demonstrating the community’s support for new and/or existing businesses. Expanding the EZ to include Gervais would have a minimal impact on workload, since there are limited opportunities for expansion. 196 Honorable Mayor and City Council November 25, 2013 Page 3 The question before City Council is whether to expand the district to include Gervais. With Council’s concurrence, staff will initiate the necessary steps to expand the Woodburn EZ.Subsequent stepsinclude consultation with taxing districts and holding the public hearing to consider the expansion. FINANCIAL IMPACT: Expanding the Woodburn Enterprise Zoneto include Gervais is anticipated to have minimal impact, primarily involving limited staff time. 197 198 199 200 o JAMES A. COX 1530 Rainier Road Woodburn, Oregon 97071 Phone /Fax(503)982 -4039 E -mail jimcoxlawCDyahoo.com November 25, 2013 James N.P. Hendryx, Director Department of Economic & Development Services City of Woodburn Woodburn OR 97071 Re: ODOT applications(s) for removal of Sequoia trees Dear Jim: Please file the enclosed documents in the application file(s) and consider them in reaching your decision on whether ODOT has met its burden of persuading you that the trees must be removed to prevent a real danger to life or property. I also request an opportunity, before a decision is reached and with or without the presence of ODOT representatives, to testify and argue to you why the application(s) should be denied. I am confident that ODOT has discussed its position on the application(s) with you. I am entitled to the same opportunity. I am aware of the City Attorney's letter instructing me that I am not allowed to talk to you, and that all communications must be through him. I presume he has given similar instructions to you. I do not agree with his position, but as an accommodation to his concerns, I am perfectly agreeable to his being present when I talk to you. Please advise when we can meet. Sincerely, JAMES A. COX Encs. cc: N. Robert Shields, City Attorney Scott Derickson City Council and Mayor 0—re—gon 1 1 To: Scott Derrickson City Administrator City of Woodburn, From; Tim Potter ODOT Are W. Derrickson, Department of Transportation FILE CODE: Region 2 Area 3 885 Airport Rd SE Salem, OR, 97303 -4788 Phone: (503) 986 -2900 Fax (503) 986 -2881 I would like to provide a summary of the decision process that led to the Oregon Department of Transportation (ODOT) decision to apply for a permit to remove two large sequoia trees with the Woodbum.Interchange project, the interruption of that application process and the result of recent investigation. • As we began the detail design portion of the sound walls and analyzed potential conflicts with the utilities in the near vicinity, ODOT in conjunction with the City, realized that sound wall and the utilities posed a major concern for the survival and structural integrity of the two sequoia trees. • About Dec. 5 of 2012, we were informed by the designers working to resolve utility conflicts that the utilities in the vicinity of the trees were going to be in conflict with the root systems. • ODOT and the City both preferred that the trees remain if possible. In early January we started detail discussions about possible ways that the design could be modified to eliminate or minimize damage to the trees. • The most feasible option was to move the wall as far from the trees as possible and alter the design from "spread" footing foundation to "drilled shaft" foundation. We also would need to minimize any "behind the wall" drainage. Drainage is necessary to avoid creating small ponds in the back yards. The sound wall would block any natural drainage. • ODOT asked our staff forester (arborist) to evaluate the potential damage to the trees, based on this minimized design. His only suggested method to minimize the damage was to hand dig the foundation holes, move the shafts as necessary to avoid significant roots, and then design the wall accordingly, which could be a several month long process. Discussions with the structural designers eliminated this possibility. Avoidance of damage to the root system could not be assured, and each span would be unique, requiring individual analysis, and customized block layout. Since there was also a significant schedule impact to the project, this option was rejected. Once the determination was made that even with substantial redesign, it was likely that the trees would sustain potentially destabilizing damage, we met with each of the affected landowners. One owner would prefer that the tree stayed, but acknowledged the ODOT recommendation to remove them, and agreed with the decision. The other owner had a similar view. As this investigation was going on, we were engaged the Department of Justice regarding the ODOT liability, should the trees remain. The DOJ opinion was that if the trees were to subsequently fall, RecordsReauest From: LEPSCHAT Daniel J [ Daniel .J.LEPSCHAT @odot.state.or.us] Sent: Wednesday, December 19, 2012 10:34 AM To: FOX Alan J Cc: CARTWRIGHT Carol A, OTTOSEN Shane; BRYANT Raymond G * Ray; GOERKE Dale; LUCAS John 0; POTTER James T * Tim; Dan Brown; CASWELL Patti Subject; RE: Proposed SW3e modification Mello, I was on site a couple months ago with Alan Wilcoxen(sp?) to evaluate the effects on the tree from the initial wall desig' From the new design, it looks like there is a much, much greater chance of being able to keep the tree without significant impacts to it. The new plan of using "pilings' for a footing instead of the traditional spread footings will greatly reduce impacts to the major holding roots.... that is — if the piling pits are dug carefully to avoid cutting the large holding roots they may encounter. For assurance that careful excavation happens, I recommend requiring a Certified Arborist be on site while these pits are excavated..... the Arborist should have authority to tell operator to move one way or the other if major roots are discovered. Careful, slow excavation will be the key to success and the Arborist may want to do a little pre -work with an air spade to remove soil in a non - invasive manner to discover the best spots to place the piling pits. The likelihood of major root disturbance is also being reduced by moving this wall further from the tree in the new plan. Sincerely, Dan Lepschat Forester / Arborist From: FOX Alan J Sent: Tuesday, December 18, 2012 1:38 PM To: LEPSCHAT Daniel J Cc: CARTWRIGHT Carol A; OTTOSEN Shane; BRYANT Raymond G * Ray; GOERKE Dale; LUCAS John O; POTTER James T * Tim; 'Dan Brown' Subject: FW: Proposed SW3e modification Daniel, I am the project leader for the Woodburn Interchange, described in the attachment below.. << File: Woodburn_ Interchange_ FactSheet_Fall_Winter_2012.pdf>> We have a sound wall being constructed for the project that is in location that threatens a particularly large sequoia tree. We would like to save the tree. To that end, the attached sketch below that shows a realignment of the sound wall is proposed. Before signing off on this plan, our tech center roadway manager, would appreciate your professional opinion as to whether the new alignment and using pile footings for the wall instead of a spread footing will be effective measures to save the tree. Please let me know if you can do this. If you can take a look at the tree, I can take you to the site at a mutually workable time. Thanks. Alan T Fox Alan J. Fox, Project Leader Phone: 503/986 -2681 885 Airport Road SE, Bldg. P Salem, OR 97301 -4788 1ER Scott Jay, December 18, 2012 7:53 AM From: LEPSCHAT Daniel J Sent: Thursday, January 10, 2013 4:30 PM To: FOX Alah J Subject: Re: Removal of Sequoia Trees at Triangle CTh,a't's pretty much right.....the way I understand it, thelocations of the piling hoies are not movable, the! erc rr' ',:mot that significant holding roots won't be damaged or removed. 1 From: FOX Alan J Sent: Thursday, January 10, 2013 04:13 PM To: LEPSCHAT Daniel J Subject: Removal of Sequoia Trees at Triangle Dan, Thanks for your evaluation of the subject trees. This is to confirm your conclusions relayed to me via voicemail: After considering the revised wall and piling location and various testing methods to determine the probability of damage to roots of the subject trees, you have concluded that there will still be risk to the subject trees by construction of the sound wall within the trees' drip lines. This is because there is no way to state that major tree roots can be avoided by the construction with a reasonable degree of certainty. Please respond by stating whether or not you agree with the above statement. If you want to reword any of it, please feel free to do so. Thanks for your help. Alan J. Fox Alan J. Fox, Project Leader Phone: 503/986 -2681 885 Airport Road SE, Bldg. P Salem, OR 97301 -4788 .,y '00 nese notren'o�e the 4-e es Estate es until s /Iha�e fo ��Ci /appr news /ever �'aro'eo. RecordsReauest From: HEYN Alfred H * AI [Alfred. H. HEYN@odot. state.or. us] Sent: Monday, December 17, 2012 6:43 AM To: BRYANT Raymond G * Ray Cc: OTTOSEN Shane; POTTER James T' Tim; Dan Brown; GOERKE Dale; ALVARADO Victor; FOX Alan J Subject; RE: Inspect Sequoia Tree I Ray- Please furnish the drilled pilaster foundation locations specific to SW3e wall stationing as shown in the project plans. We can't exceed maximum pilaster spacings as shown on standard drawing BR740 of 13 foot- 9 inches. Please keep that in mind for any specific locations given for the drilled pilaster foundations. The soundwall has retaining walls built in to it so most of the wall will need to be spread footing with only the area near the tree as pilaster foundation and that is only because of the tree roots. Drilled pilaster foundations do not work with retaining walls so spread footings are needed. 14z P. E. Sr. Structural Design Engineer COOT Region 2 Bridge/Geo -Hydro 455 Airport Rd. SE, Bldg. A Salem. OR 973015397 Phone: 503 -986 -2774 Alan I r, December 14, 2012 2:24 PM Alfred H * Al; ALVARADO Victor ;EN Shane; BRYANT Raymond G * Ray; POTTER James T * Tim; Brown, Dan Mg nbrown;aci w0odburm .us ; GOERKE Dale RE: Inspect Sequoia Tree 21 We visited the tree in question. Scott Ohmer had staked out the spread footing vs. the pilaster footing. Everyone concluded that the pilaster footing has a high probabliity, of saving the tree. Accordingly, you are requested to work with Ray Bryant on pilaster locations for that section of wall. Also please consider using pilaster footings the entire length of the wall. Ray will discuss this with you. Thanks for your flexibility in this matter. Victor, It is my understanding that you are going ahead with paying for the tree regardless of the footing design. Alan J. fox Alan J. Fox, Project Leader Phone: 503/985 -2681 885 Airport Road SE, Bldg. P Salem, OR 97301 -4788 Alan J Jay, December 13, 2012 10:03 AM in J; OTTOSEN Shane; BRYANT Raymond G * Ray; HEYN Alfred H * Al; POTTER James T * Tim; Brown, Dan (Ian. browrnAci woodburq or.us) Inspect Sequoia Tree y, December 14, 2012 1:00 PM -3:00 PM (GMT- 08:00) Pacific Time (US & Canada). 2 COOT at 1:00, return by 3:00; on site at 1:30 Alan will drive Print Subject: sequoia trees From: James Cox gimcoxlaw @yahoo.com) To: Laquino @mail2.cu- portland.edu; Date: Saturday, November 9, 2013 4:50 PM Lenin, Here are the documents you requested. The first attachment is (1) an email from Alan Fox, ODOT's project leader to Dan Lepschat, ODOT's forester /arborist, forwarding the proposed redesign (relocating the sound wall a bit) and asking for his opinion and (2) Lepschat's response approving the plan to save the trees using the excavation requirements described in his response. We agree with Lepschat's opinion, and we hope ODOT will go back and re- approve that method of saving the trees -- particularly if the City denies ODOT's application to remove the trees. The second attachment is a drawing showing the slight relocation of the slight sound wall and the tentative location of the eight pilings about 12 feet apart. The third attachment is (1) Alan Fox's email to Dan Lepschat about three weeks later saying that they want to reject the proposed plan because "there is no way to state that major tree roots can be avoided by the construction with a reasonable degree of certainty," and (2) Lepschat's response agreeing because "the way I understand it, the locations of the piling holes are not movable, and therefore I cannot say that significant holding roots won't be damaged or removed." The fourth attachment is an email from Alan Fox to Al Heyn, ODOT's structural design engineer, saying, (1) "Everyone concluded that the pilaster footing [i.e, the pilings] has a high probability of saving the tree," and asking Heyn to work on determining the pilaster locations, and (2) Heyn's response saying that the pilasters couldn't be more than 13'9" apart, and that pilings could be used only in the area of the sequoias because other parts of the soundwall also served as retaining walls. Note that there is absolutely no reason given in the records explaining why the pilings could not be moved to avoid major roots as suggested in Dan Lepschat's original opinion. I have talked to a veteran Civil Engineer with wide experience in this sort of construction. He assured me that he could not conceive of any reason the piling location could not be adjusted as necessary. I can get a written opinion from him on this. I very strongly believe that that was not the real reason ODOT's higher ups vetoed the plan. They came up with the lame excuse that the piling holes were immovable only because they xvthlar* 11/R/13- PriM had other unexpressed concerns. Those other concerns (liability and precedent have been mentioned by ODOT in subsequent meetings) have nothing to do with whether the trees are a danger to life or property - -if the concerns can be obviated by a reasonable design change. As the trees now stand they are healthy and flourishing. There will theoretically be a problem only if ODOT uses a method of design and construction that damages the trees and makes them potentially unsafe. ODOT has a clear alternative - -a method originally approved by them - -to avoid any problem. Finally, let's assume that ODOT made no adjustments to its current design, and built the soundwall without cutting down the trees. Is it likely the trees would survive and be healthy and sound? The burden is on ODOT to show that they probably would not, and constitute a danger to life or property. Perhaps, Lenin, you can find something in the literature or in the experience and wisdom of your father and other old hands in the tree business to indicate that sequoias are tough trees and would probably remain healthy and stable even if some major roots on one side were cut 12 1/2 or 14 1/2 feet from the trunk. Just from our own limited observations we can point to three examples to support this. First is the cedar trees on the east side of Settlemier near Highway 214. Cedars have a similar rooting system to sequoias but without the massive spreading base. Eight years ago a right turn lane was built on Settlemier onto Hwy. 214. The cedars are only a foot from the curb line. I haven't looked at the construction specs on that job, but you can be sure that the turn lane was excavated at least 18 inches to two feet in order to install rock base underneath the asphalt. These trees continue to thrive. Second is a large sequoia on the west side of Summer Street NE at the Union Street intersection approaching the State Capitol Building in Salem. The base of the trunk is only three or four feet from the curb at this busy intersection. I don't know exactly when, but I remember that Summer Street was widened and improved, perhaps 10 years or so ago. No doubt significant excavation was done to establish adequate rock base - -as was done on Settlemier in Woodburn. This tree continues to thrive. Third, and closest to our case, are two large sequoias on the east side of SW 72nd Avenue in Tigard. They are just south of the Sandburg Street intersection. Thirty years ago SW 72nd was extensively improved, from an old residential- standard street to an arterial. The original grade sloping to the west was excavated several feet leaving the sequoias about 5 feet above the level of the new street and about 5 feet horizontally from the curb line. Clearly, major roots on the west side of these trees were cut off quite close to the trunks of these trees. Yet they continue to thrive. I have good photos that illustrate the situation. Let me know if you want them. w mw� vy u p Pffli We are not saying that ODOT should ignore the available way to reduce any potential danger--just that even if they don't do so there still is a very good chance of the trees surviving nicely right where they are. I am working on getting evaluations from another arborist or two. As you can see, I have not had time to draft a proposed report for you to work from. If a draft would help, let me know and I will prepare it. Or, maybe the above is sufficient for your purposes. Let me know. Lenin, I want to thank you again for your willingness to work with us on what we feel to be an important project. Jim Cox "rar-y"O Mariin J. DeHaas, P.E., P.LS. 1425 Cherry Crest Drive Lake Owego, Oregon 97034 Date: November 19, 2013 To: Mayor and City Councilors City of Woodburn Re: Sequoia trees adjacent to Hwy. 214 I have been a registered Civil Engineer in Oregon for over 50 years. 1 Dave extensive experience in planning, designing and supervising the construction of roads, utilities and other iufiastrucnue for public projects and for private developers and property owners. I have designed numerous projects for the City of Woodbury including South Front Street. 1 have reviewed the following: • Email dated Dec. 19, 2012 from Daniel LepFhat, a forester /arborist for ODOT, outlining a method to save two significant sequoia aces by avoiding cutting major holding roots of the trees in the process of erecting a sound wall_ (Copy of email attached.) • ODOT's drawing dated Dec. 18, 2012, showing proposed sound wall modifications. (Copy of drawing attached.) • Email dated January 10, 2013, from Alan Fox, ODOT's project manager, to Mr. L.epshat; and Mr. Lepshat's reply email to Mr. Fox on the same date. (Copies of emails attached.) The drawing shows an approuimatc 96 -foot section of the sound wall supported by nine pilings instead of a continuous concrete footing as was in the original design. As stated in Mr_ Lepschat's email report, there would need to be preliminary work to locate major roots to be sure that the piling locations avoided major roots. According to Mr. Lepschat, if major roots were found to be in the same location as pilings on the drawing, the pilings could be moved slightly to avoid the roots. About a month later, on Jan. 1 o, 2013, in response to an email from Alan Fox, Mr. Lepschat changed his opinion and said the original plan would not work. His given reason was "...The way I understand it, the locations of the piling holes are not movable, therefore I cannot say that significant holding roots won't be damaged or removed." (have no knowledge of where or from whom Mr. Lepschat got the information to support his "understanding" that the piling holes couldn't be moved From an engineering standpoint I cannot conceive of any reason the holes could not be moved. Additional pilings could be added if space became an issue. There is no indication that any exploratory digging has been done to determine whether significant roots were in locations incompatible with the piling holes, or if the pilings could be moved a bit to avoid the roots. A47 /V/� Marlin J. DeVwis, P.E., P.L.S. ALTERNATIVE TREE SERVICE, LLC 204 East Sixth Street c(DMolalla, Oregon 97038 ®j�n rj (503) 545 -0978 uu�J U CCB No. 190715 Eduardo Aquino Gonzalo E. Aquino Lenin 1. Aquino, CertiFled Arborist KJ.V.I t IcIll.Y rana =zac News Sports Finance Weather Games Groups Answers Screen Flickr Mobile I More © James F « ♦ 10 Delete © Move .. 41 Spam ® More .. = Collapse All X • Sequoias • David Vancil Today at 12:06 PM To Me Dear Jim, Last month over 600 Woodburn residents put their name to petitioru to save livability in our small town. While a couple of historic trees is not going to reduce gangs or dean up downtown, it is a symbol of a large number of people in our community coming together for a common cause, livability. People complain about issues all the time but it is rare for 600 of our residents to put their name to a cause. I understand that the Council will be the last point of intervention in the Sequoias issue and that a decision is eminent I encourage you to seriously consider a political intervention to save these historic trees. It is my further understanding that the reason given for riot designing a wall that will allow for the trees to remain is time. I submit that in a three year project having a few weeks delay in the actual construction of a portion of a wall is worth the gamble that the overall may be delayed by a month in the end. Demonstrate to the people of Woodburn that their city elected officials does listen to their concerns and that getting involved is not a waste of their time. r Mobile Respectfully, David Vancil do Reply, Reply All or Forward i More ` r i x S y t � r qy nn NN 4 h AM 1�_ "'k' �, w�l � �( •ru F +4+* p t Sjy o y y a H � .x�+` f4 e, l tw { � 4-'y� `^ a � ( .yet /•. � ,� 14.E r���s r, i Ap ' �j Nr µ 1 .. ,T #4w + i x k ' t . a a 1