Document Woodburn_doc_5a3a8b4062

CITY OF WOODBURN, OREGON Annual Financial Report Year Ended June 30, 2013 ---PAGE BREAK--- 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 ---PAGE BREAK--- 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 ---PAGE BREAK--- v CITY OF WOODBURN, OREGON JUNE 30, 2013 MAYOR AND COUNCIL MEMBERS Name Term Expires Mayor 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 ---PAGE BREAK--- - 1 - 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. ---PAGE BREAK--- - 2 - 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 ---PAGE BREAK--- - 3 - 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. 2013 2012 change Net position 113,952,363 $ 111,291,473 $ 2,660,890 $ Change in net position 2,660,890 2,414,940 245,950 Governmental activities net position 71,695,875 70,359,567 1,336,308 Business-type activities net position 42,256,488 40,931,906 1,324,582 Change in governmental net position 1,336,308 1,242,350 93,958 Change in proprietary net position 1,324,582 1,172,590 151,992 June 30, 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." ---PAGE BREAK--- - 4 - 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. ---PAGE BREAK--- - 5 - 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 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 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. Governmental Business-type Governmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total Activities Activities Total 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 64,730,987 124,799,622 60,676,927 65,600,255 126,277,182 (608,292) (869,268) (1,477,560) Total Assets 78,913,089 88,904,323 167,817,412 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 assets 54,361,481 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 13,749,114 482,804 (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 $ Change 2013 2012 Governmental Activities The City’s net position from governmental activities increased $1,336,308 from 2011-12 to 2012-13. ---PAGE BREAK--- - 6 - Business-type Activities The City’s net position from business-type activities increased $1,324,582 from 2011-12 to 2012-13. Statement of Activities The following table reflects the condensed Statement of Activities compared to the prior year. Business- Business- Business- Governmental type Governmental type Governmen type Activities Activities Total Activities Activities Total Activities Activities Total Revenues Program Revenues Charges for service 2,129,950 $ 9,785,103 $ 11,915,053 2,321,980 $ 9,535,915 $ $ 11,857,895 (192,030) $ 249,188 $ $ 57,158 Operating grants and contributions 1,948,383 - 1,948,383 1,911,075 - 1,911,075 37,308 - 37,308 Capital grants and contributions 840,242 290,930 1,131,172 522,817 437,817 960,634 317,425 (146,887) 170,538 Total Program Revenues 4,918,575 10,076,033 14,994,608 4,755,872 9,973,732 14,729,604 162,703 102,301 265,004 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 292,791 177,687 470,478 299,156 74,063 373,219 (6,365) 103,624 97,259 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 1,002,730 1,658,160 2,660,890 531,350 1,883,590 2,414,940 471,380 1,126,810 1,598,190 Transfers 333,578 (333,578) - 711,000 (711,000) - (377,422) 377,422 - Change in Net Position 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 - - Beginning Net Position, as adjusted 70,359,567 40,931,906 111,291,473 69,117,217 39,759,316 108,876,533 1,242,350 1,172,590 2,414,940 Ending Net Position 71,695,875 $ 42,256,488 $ 113,952,363 $ 70,359,567 $ 40,931,906 $ 111,291,473 $ 1,336,308 $ 2,676,822 $ 4,013,130 $ 2013 2012 Change 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. ---PAGE BREAK--- - 7 - 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 $538,141 from 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 $1,324,582 was 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. 2013 2012 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) % Activities Governmental 2012-2013 Change Percentage Total ---PAGE BREAK--- - 8 - 2013 2012 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) % Business-type Activities Total Percentage Change 2012-2013 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. Change 2013 2012 2012-2013 Loans 155,773 $ 180,213 $ (24,440) $ Bonds 5,551,381 6,053,236 (501,855) Total 5,707,154 $ 6,233,449 $ (526,295) $ Governmental Activities Change 2013 2012 2012-2013 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) $ Business-type Activities 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. ---PAGE BREAK--- - 9 - 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. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 10 - CITY OF WOODBURN, OREGON STATEMENT OF NET POSITION JUNE 30, 2013 Governmental Business-type Activities Activities Totals ASSETS Cash and investments 17,022,290 $ 23,486,532 $ 40,508,822 $ Accounts receivable 497,615 623,846 1,121,461 Property taxes receivable 676,014 - 676,014 Assessment liens receivable 710,023 - 710,023 Prepaid expenses 1,470 - 1,470 Internal balances (62,958) 62,958 - Non-depreciable capital assets 24,033,092 6,350,314 30,383,406 Other capital assets, net of depreciation 36,035,543 58,380,673 94,416,216 Total Assets 78,913,089 88,904,323 167,817,412 LIABILITIES Accounts payable 482,264 113,696 595,960 Accrued payroll liabilities 153,288 - 153,288 Deposits payable 15,000 100,735 115,735 Accrued interest payable 21,419 465,886 487,305 Noncurrent liabilities: Due within one year: Long-term debt 560,172 2,913,471 3,473,643 Due in more than one year: Long-term debt 5,146,982 42,945,949 48,092,931 Accrued compensated absenses 838,089 108,098 946,187 Total Liabilities 7,217,214 46,647,835 53,865,049 NET POSITION Net investment in capital assets 54,361,481 31,886,659 86,248,140 Restricted for: Debt service 1,915,504 1,934,172 3,849,676 Culture and recreation 220,923 - 220,923 Construction 8,259,572 1,231,131 9,490,703 Unrestricted 6,938,395 7,204,526 14,142,921 Total Net Position 71,695,875 $ 42,256,488 $ 113,952,363 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2013 Fees, Fines Operating Capital and Charges Grants and Grants and Expenses for Services Contributions Contributions FUNCTIONS/PROGRAMS Governmental activities: General government 2,411,067 $ 733,090 $ - $ 640 $ Public safety 6,389,207 715,743 58,699 - Highways and streets 2,663,020 106,604 1,317,468 736,242 Culture and recreation 3,270,803 574,513 572,216 103,360 Interest on long-term debt 248,109 - - - Total Governmental activities 14,982,206 2,129,950 1,948,383 840,242 Business-type activities: Water 2,882,056 3,236,888 - 92,991 Sewer 5,713,504 6,548,215 - 197,939 Total Business-type activities 8,595,560 9,785,103 - 290,930 Total Activities 23,577,766 $ 11,915,053 $ 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 Transfers Change in net position Net Position - beginning of year, as originally stated Prior period adjustment Net Position - beginning of year, as adjusted Net Position - end of year Program Revenues ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 11 - Governmental Business-type Activities Activities Totals (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 70,359,567 41,206,320 111,565,887 - (274,414) (274,414) 70,359,567 40,931,906 111,291,473 71,695,875 $ 42,256,488 $ 113,952,363 $ and Changes in Net Position Net (Expenses) Revenues ---PAGE BREAK--- CITY OF WOODBURN, OREGON BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2013 Special Revenue Capital Projects General Street Street SDC ASSETS Cash and investments 3,512,663 $ 2,015,921 $ 5,187,527 $ Accounts and notes receivable 214,598 142,800 - Property taxes receivable 582,016 - - Assessment liens receivable - - 28,256 Prepaid expenses 1,470 - - Due from other funds - - 186,718 Total Assets 4,310,747 $ 2,158,721 $ 5,402,501 $ LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES Liabilities: Accounts payable 94,006 $ 38,108 $ 56,877 $ Accrued payroll and payroll liabilities 153,288 - - Deposits payable - 15,000 - Due to other funds 249,676 - - Total Liabilities 496,970 53,108 56,877 Deferred Inflows: Deferred revenue 531,337 - 28,256 Fund Balance: Non-spendable 1,470 - - Restricted for: Debt service - - - Construction - 2,105,613 5,317,368 Culture and recreation - - - Committed to: Capital outlay - - - Public works - - - Culture and recreation - - - Planning and building - - - Unassigned 3,280,970 - - 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 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 12 - Other Governmental Funds Total 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 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 13 - 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. Cost 84,200,497 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 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Special Revenue Capital Projects General Fund Street Street SDC REVENUES Taxes and assessments 7,394,665 $ 106,537 $ - $ Licenses and permits 1,412,286 67 411,527 Charges for services 598,423 353,380 - Intergovernmental 820,843 1,317,468 - Fines and forfeitures 589,574 - - Miscellaneous 124,256 21,535 25,112 Total Revenues 10,940,047 1,798,987 436,639 EXPENDITURES Current General government 911,652 - - Public safety 6,328,417 - - Highways and streets - 990,694 - Culture and recreation 2,868,043 - - Debt Service Principal - - 24,440 Interest - - 9,079 Capital outlay - - 488,371 Total Expenditures 10,108,112 990,694 521,890 REVENUES OVER (UNDER) EXPENDITURES 831,935 808,293 (85,251) OTHER FINANCING SOURCES (USES) Transfers in - 700,218 4,430 Transfers out (293,794) (199,830) - Total Other Financing Sources (Uses) (293,794) 500,388 4,430 NET CHANGE IN FUND BALANCE 538,141 1,308,681 (80,821) FUND BALANCE, beginning of year 2,744,299 796,932 5,398,189 FUND BALANCE, end of year 3,282,440 $ 2,105,613 $ 5,317,368 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 14 - Other Governmental Funds Total 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 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 15 - 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 Net Change in Fund Balances - Total Governmental Funds 1,438,246 $ 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 expenditures 911,436 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 paid 526,295 Net income of internal service funds 123,578 Change in Net Position of Governmental Activities 1,336,308 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF FUND NET POSITION - PROPRIETARY FUNDS JUNE 30, 2013 Water Sewer WWTP Construction 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 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 16 - WWD Construction Other Business- type Funds Total Total Internal Service Funds 3,158,894 $ 1,190,635 $ 23,486,532 $ 686,889 $ 8,782 40,496 623,846 - 186,718 - 239,718 - 3,354,394 1,231,131 24,350,096 686,889 815,013 - 6,350,314 - 558,212 - 58,380,673 - 1,373,225 - 64,730,987 - 4,727,619 1,231,131 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 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 Water Sewer WWTP Construction OPERATING REVENUES Licenses and permits - $ - $ - $ Charges for services 3,236,888 6,548,215 - Miscellaneous 58,454 9,291 - Total Operating Revenues 3,295,342 6,557,506 - OPERATING EXPENSES Personal services 1,287,039 1,861,928 - Materials and services 617,423 853,746 35,968 Depreciation 415,388 1,903,291 48,743 Total Operating Expenses 2,319,850 4,618,965 84,711 OPERATING INCOME (LOSS) 975,492 1,938,541 (84,711) NONOPERATING REVENUES (EXPENSES) Investment revenue 3,827 10,604 73,974 Interest expense (521,963) (1,078,905) - Bond premium amortization - 69,077 - Total Nonoperating Revenues (Expenses) (518,136) (999,224) 73,974 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 457,356 939,317 (10,737) Capital contributions - - - Transfers in 824,000 2,947,664 - Non-cash transfers in - - 171,033 Transfers out (102,797) (377,913) (2,892,724) Non-cash transfers out - (98,331) - CHANGE IN NET POSITION 1,178,559 3,410,737 (2,732,428) NET POSITION, Beginning of year (1,536,706) 15,890,913 20,422,033 Prior period adjustment - (274,414) - NET POSITION, Beginning of year, as restated (1,536,706) 15,616,499 20,422,033 NET POSITION, End of year (358,147) $ 19,027,236 $ 17,689,605 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 17 - WWD Construction Other Enterprise Funds Totals Total Internal Service Funds - $ - $ - $ 19,628 $ - - 9,785,103 2,281,719 - - 67,745 2,640 - - 9,852,848 2,303,987 - - 3,148,967 1,348,443 9,175 - 1,516,312 1,141,575 31,068 - 2,398,490 - 40,243 - 7,063,769 2,490,018 (40,243) - 2,789,079 (186,031) 17,106 4,431 109,942 2,019 - - (1,600,868) - - - 69,077 - 17,106 4,431 (1,421,849) 2,019 (23,137) 4,431 1,367,230 (184,012) - 290,930 290,930 - 4,430 - 3,776,094 362,322 - - 171,033 - (754,000) (54,940) (4,182,374) (54,732) - - (98,331) - (772,707) 240,421 1,324,582 123,578 5,439,370 990,710 41,206,320 418,235 - - (274,414) - 5,439,370 990,710 40,931,906 418,235 4,666,663 $ 1,231,131 $ 42,256,488 $ 541,813 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 Water Sewer CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 3,234,419 $ 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 1,336,726 3,642,889 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in 824,000 2,947,664 Transfers out (115,836) (391,123) Net Cash Provided by (Used in) Non-Capital Financing Activities 708,164 2,556,541 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets - - Proceeds from disposal of capital assets 1,300 - 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 investments 3,827 10,605 Increase (Decrease) in Cash and Investments 892,023 3,259,373 CASH AND INVESTMENTS, Beginning of year 512,124 583,681 CASH AND INVESTMENTS, End of year 1,404,147 $ 3,843,054 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 18 - WWTP Nonmajor Total Internal Construction Funds Totals Service Funds 183,308 $ 62,190 $ - $ 9,838,410 $ 2,307,987 $ (98,749) (1,218) (514) (1,573,379) (1,242,241) - - - (3,140,399) (1,334,561) 84,559 60,972 (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) - 73,974 17,106 4,431 109,943 2,019 (3,546,887) (1,280,524) 199,190 (476,825) 38,877 17,436,689 4,439,418 991,445 23,963,357 648,012 13,889,802 $ 3,158,894 1,190,635 $ 23,486,532 $ 686,889 $ Construction WWD ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS (Continued) YEAR ENDED JUNE 30, 2013 Water Sewer RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) 974,192 $ 1,938,541 $ Depreciation 415,388 1,903,291 Change in assets and liabilities: Accounts receivable (66,887) (199,013) Accounts payable and accrued liabilities 6,730 (8,459) Customer deposits 7,264 - Compensated absences payable 39 8,529 Net Cash Provided by (Used in) Operating Activities 1,336,726 $ 3,642,889 $ Noncash Transactions Transfer of capital assets - $ (98,331) $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 19 - WWTP WWD Nonmajor Total Internal Construction Construction Funds Totals Service Funds (84,711) $ (40,243) $ - $ 2,787,779 $ (186,031) $ 48,743 31,068 - 2,398,490 - 183,308 62,190 - (20,402) 4,000 (62,781) - (514) (65,024) (100,666) - - - 7,264 - - - - 8,568 13,882 84,559 $ 60,972 $ (514) $ 5,124,632 $ (268,815) $ 171,033 $ - $ - $ 72,702 $ - $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 20 - CITY OF WOODBURN, OREGON STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2013 Pension Trust ASSETS Cash and investments 82,237 $ LIABILITIES Due to others - NET POSITION Held in trust for benefits and other purposes 82,237 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 21 - 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 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- - 22 - 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. ---PAGE BREAK--- - 23 - 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 charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and 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 fines, fees and charges to customers or applicants for goods, services or privileges provided, operating grants and contributions, and 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. ---PAGE BREAK--- - 24 - 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: externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or 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. ---PAGE BREAK--- - 25 - 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 ---PAGE BREAK--- - 26 - 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. ---PAGE BREAK--- - 27 - 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 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. ---PAGE BREAK--- - 28 - 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. ---PAGE BREAK--- - 29 - 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 weekday transportation 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 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. ---PAGE BREAK--- - 30 - 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. ---PAGE BREAK--- - 31 - 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. ---PAGE BREAK--- - 32 - 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.” Cash Deposits with financial institutions $ 600,079 $ 600,079 Cash on hand 2,310 2,310 Investments Local Government Investment Pool 39,906,433 39,906,433 Assets held for pension benefits 82,237 82,237 $ 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 funds 23,486,533 Fiduciary funds 82,237 $ 40,591,059 Carrying Fair Value Value Deposits The book balance of the City’s bank deposits (checking accounts) was $600,079 and 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. ---PAGE BREAK--- - 33 - 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. ---PAGE BREAK--- - 34 - 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: Balances Balances July 1, June 30, 2012 Additions Retirements 2013 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 assets 5,316,600 1,451,233 (417,519) 6,350,314 Depreciable assets Buildings 62,340,008 172,267 - 62,512,275 Water and sewer systems 28,315,347 250,536 - 28,565,883 Equipment 1,899,873 72,705 - 1,972,578 Subtotal, depreciable assets 92,555,228 495,508 - 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, net 60,283,656 (1,902,983) - 58,380,673 Net capital assets 65,600,256 $ (451,750) $ (417,519) $ 64,730,987 $ Depreciation expense was allocated as follows: Water funds 446,456 $ Sewer funds 1,952,035 2,398,491 $ ---PAGE BREAK--- - 35 - 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: Balances Balances July 1, June 30, 2012 Additions Retirements 2013 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 assets 24,476,737 806,120 (1,249,765) 24,033,092 Depreciable assets Buildings 15,897,131 336,853 - 16,233,984 Equipment 5,690,040 105,317 (15,941) 5,779,416 Infrastructure 37,241,093 912,912 - 38,154,005 Subtotal, depreciable assets 58,828,264 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) 15,941 (24,131,862) Total depreciable assets, net 36,200,190 (164,647) - 36,035,543 Net capital assets 60,676,927 $ 641,473 $ (1,249,765) $ 60,068,635 $ * As adjusted Depreciation expense was allocated as follows: General government 471,116 $ Public safety 60,789 Highways and streets 820,654 Culture and recreation 167,170 1,519,729 $ ---PAGE BREAK--- - 36 - 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: Outstanding Outstanding Due July 1, Redeemed June 30, Within 2012 Issued During Year 2013 One Year Governmental Activities: Series 2005 general obligation bonds due in annual installments with principal and interest varying annually 5,365,000 $ - $ (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) 155,773 29,663 2005 URA bonds due in quarterly installments of $56,933 with interest at 4.22%. 688,236 - (201,855) 486,381 210,509 6,233,449 - (526,295) 5,707,154 560,172 Accrued compensated absences 738,251 99,838 - 838,089 - 6,971,700 $ 99,838 $ (526,295) $ 6,545,243 $ 560,172 $ Outstanding Matured/ Outstanding Due July 1, Redeemed June 30, Within 2012 Issued During Year 2013 One 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) 2,779,912 182,792 2005 SDWR due in annual installments including interest at 4.21% 2,955,328 - (175,407) 2,779,921 182,792 2011 Sewer Revenue Bonds paid over 20 years; interest at various rates 33,291,557 - (1,865,000) 31,426,557 2,265,153 45,721,367 - (2,486,879) 43,234,488 2,913,471 2011 Sewer Revenue Bond premium 2,694,009 - (69,077) 2,624,932 - Accrued compensated absences 99,530 8,568 - 108,098 - 48,514,906 $ 8,568 $ (2,555,956) $ 45,967,518 $ 2,913,471 $ ---PAGE BREAK--- - 37 - 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 Ending Principal Interest Total 2014 560,172 $ 228,861 $ 789,033 $ 2015 584,429 206,832 791,261 2016 436,479 185,340 621,819 2017 400,399 169,937 570,336 2018 420,675 153,956 574,631 2019-23 2,240,000 511,781 2,751,781 2024-25 1,065,000 68,166 1,133,166 5,707,154 $ 1,524,873 $ 7,232,027 $ Business-type Activities Ending Principal Interest Total 2014 2,913,471 $ 1,555,868 $ 4,469,339 $ 2015 3,425,522 1,457,889 4,883,411 2016 3,177,229 1,358,931 4,536,160 2017 3,330,966 1,358,943 4,689,909 2018 3,921,935 1,123,066 5,045,001 2019-23 21,975,211 5,560,695 27,535,906 2024-28 3,769,445 607,072 4,376,517 2029-31 720,709 39,803 760,512 43,234,488 $ 13,062,267 $ 56,296,755 $ June 30, Fiscal Year June 30, Fiscal Year ---PAGE BREAK--- - 38 - 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 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 ---PAGE BREAK--- - 39 - 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 [PHONE REDACTED]. 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. ---PAGE BREAK--- - 40 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2013 TRANSFERS Transfers In Transfers Out General Fund - $ 339,656 $ Transit 150,821 - Search and Seizure 7,063 - Street 700,218 199,830 Local Gas Tax - 480,218 General Construction 207,000 - Park SDC - 207,000 Street SDC 39,221 - Equipment Replacement 210,000 - WWTP Construction - 2,892,724 WWD Construction 39,221 754,000 Water 824,000 114,657 Sewer 2,947,664 389,773 Storm - 54,940 Technical & Environmental Services 379,717 5,000 Building Maintenance - 67,127 5,504,925 $ 5,504,925 $ Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and 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. ---PAGE BREAK--- - 41 - 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: Budget Actual Variance General Fund Administration 171,108 $ 173,554 $ (2,446) $ City Recorder 48,380 49,063 (683) Building Personal services 234,522 234,897 (375) Water Personal services 1,283,761 1,287,000 (3,239) Sewer Personal services 1,835,229 1,853,398 (18,169) 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. ---PAGE BREAK--- - 42 - 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. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- - 43 - 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 Original Final Actual Variance REVENUES 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) EXPENDITURES 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 REVENUES OVER (UNDER) EXPENDITURES (1,244,728) (2,137,628) 831,935 2,969,563 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 BALANCE, beginning of year, as originally reported 1,800,000 2,700,000 2,744,299 44,299 Prior period adjustment - - 295,537 295,537 FUND BALANCE, beginning of year, as restated 1,800,000 2,700,000 3,039,836 339,836 FUND BALANCE, end of year (budgetary basis) 185,000 $ 185,000 $ 3,532,115 3,347,115 $ Interfund loan (249,675) FUND BALANCE, end of year, GAAP basis 3,282,440 $ Budget Amounts ---PAGE BREAK--- - 44 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - STREET FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Taxes and assessments - $ - $ 106,537 $ 106,537 $ Licenses and permits 750 750 67 (683) Franchise fees - - 353,380 353,380 Intergovernmental 1,200,000 1,200,000 1,317,468 117,468 Miscellaneous 3,500 3,500 21,535 18,035 Total Revenues 1,204,250 1,204,250 1,798,987 594,737 EXPENDITURES Personal services 431,341 431,341 424,937 6,404 Materials and services 691,186 691,186 565,757 125,429 Contingency 641,893 641,893 - 641,893 Total Expenditures 1,764,420 1,764,420 990,694 773,726 REVENUES OVER (UNDER) EXPENDITURES (560,170) (560,170) 808,293 1,368,463 OTHER FINANCING SOURCES (USES) Transfers in 220,000 220,000 700,218 480,218 Transfers out (199,830) (199,830) (199,830) - Total Other Financing Sources and Uses 20,170 20,170 500,388 480,218 NET CHANGE IN FUND BALANCE (540,000) (540,000) 1,308,681 1,848,681 FUND BALANCE, beginning of year 540,000 540,000 796,932 256,932 FUND BALANCE, end of year - $ - $ 2,105,613 $ 2,105,613 $ Budget Amounts ---PAGE BREAK--- OTHER SUPPLEMENTAL INFORMATION ---PAGE BREAK--- - 45 - 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 Original Final Actual Variance REVENUES 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 EXPENDITURES 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 - 5,279,887 488,371 4,791,516 Contingency 5,279,887 - - - Total Expenditures 5,319,841 5,319,841 521,890 4,797,951 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, beginning of year 5,078,000 5,078,000 5,398,189 320,189 Prior period adjustment - - (221,509) (221,509) FUND BALANCE, beginning of year, as restated 5,078,000 5,078,000 5,176,680 98,680 FUND BALANCE, end of year, budgetary basis - $ - $ 5,130,650 5,130,650 $ Interfund loan 186,718 FUND BALANCE, end of year, GAAP basis 5,317,368 $ Budget Amounts ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Transit Building Housing Rehabilitation ASSETS Cash and investments 46,826 $ 363,113 $ 338,019 $ Accounts and notes receivable 90,491 - 660,661 Property taxes receivable - - - Assessment liens receivable - - - Total Assets 137,317 $ 363,113 $ 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 $ Special Revenue ---PAGE BREAK--- - 46 - RSVP Cable Franchise Library Endowment Museum Endowment Lavelle Black Trust 10,125 $ 2,803 $ 26,121 $ 2,930 $ 51,876 $ - 5,254 - - - - - - - - - - - - - 10,125 $ 8,057 $ 26,121 $ 2,930 $ 51,876 $ 4,205 $ - $ - $ - $ - $ - - - - - - - - - - - - - - - 5,920 - 26,121 2,930 51,876 - - - - - - - - - - - 8,057 - - - - - - - - 5,920 8,057 26,121 2,930 51,876 10,125 $ 8,057 $ 26,121 $ 2,930 $ 51,876 $ Special Revenue ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) JUNE 30, 2013 General Construction Special Assessment Street/Storm Capital Improvement ASSETS Cash and investments 59,613 $ 1,024,912 $ 389,192 $ Accounts and notes receivable - - - Property taxes receivable - - - Assessment liens receivable - 49,362 - Total Assets 59,613 $ 1,074,274 $ 389,192 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities: Accounts payable 30 $ - $ 153,692 $ Deferred Inflows: Deferred revenue - 49,362 - Fund Balance: Restricted for: Debt service - - - Construction - - - Culture and recreation - - - Committed to: Capital outlay 59,583 - - Public works - 1,024,912 235,500 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 $ Capital Projects ---PAGE BREAK--- - 47 - Parks SDC Storm SDC Equipment Replacement GO Debt URA Total 262,417 $ 470,119 $ 729,997 $ 23,687 $ 1,817,540 $ 5,619,290 $ - - - - - 756,406 - - - 44,596 49,402 93,998 14,016 2,200 - - - 65,578 276,433 $ 472,319 $ 729,997 $ 68,283 $ 1,866,942 $ 6,535,272 $ - $ - $ 18,992 $ - $ 19,721 $ 254,643 $ 14,016 2,200 - 40,713 45,152 812,104 - - - 27,570 1,802,069 1,829,639 262,417 470,119 - - - 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 $ Debt Service Capital Projects ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Transit Building Search and Seizure REVENUES Taxes and assessments - $ - $ - $ Licenses and permits - 553,274 - Charges for services 56,565 - - Intergovernmental 449,572 25,162 - Miscellaneous 8,245 39,169 15,631 Total Revenues 514,382 617,605 15,631 EXPENDITURES Current General government - 404,090 - Highways and streets - - - Culture and recreation 630,592 - - Debt Service Principal - - - Interest - - - Capital outlay 37,819 - - Total Expenditures 668,411 404,090 - REVENUES OVER (UNDER) EXPENDITURES (154,029) 213,515 15,631 OTHER FINANCING SOURCES (USES) Transfers in 150,821 - 7,063 Transfers out - - - Total Other Financing Sources and Uses 150,821 - 7,063 NET CHANGE IN FUND BALANCE (3,208) 213,515 22,694 FUND BALANCE (DEFICIT), beginning of year 137,284 94,836 (22,694) FUND BALANCE, end of year 134,076 $ 308,351 $ - $ Special Revenue ---PAGE BREAK--- - 48 - Housing Rehabilitation RSVP Cable Franchise Local Gas Tax Library Endowment Museum Endowment - $ - $ - $ - $ - $ - $ - - 28,038 - - - - - - - - - - 17,856 - - - - 51,572 101 15 - 120 158 51,572 17,957 28,053 - 120 158 - - 21,018 - - - - - - - - - 44,665 39,404 - - - - - - - - - - - - - - - - - - - - - - 44,665 39,404 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 $ Special Revenue ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2013 Special Revenue Lavelle Black Trust General Construction Special Assessment REVENUES Taxes and assessments - $ - $ 19,534 $ Licenses and permits - - - Charges for services - - - Intergovernmental - 44,000 - Miscellaneous 5,423 1,795 4,479 Total Revenues 5,423 45,795 24,013 EXPENDITURES Current General government - - - Highways and streets - - 62 Culture and recreation 3,200 - - Debt Service Principal - - - Interest - - - Capital outlay - 70,274 - Total Expenditures 3,200 70,274 62 REVENUES OVER (UNDER) EXPENDITURES 2,223 (24,479) 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 2,223 182,521 23,951 FUND BALANCE (DEFICIT), beginning of year 49,653 (122,938) 1,000,961 FUND BALANCE, end of year 51,876 $ 59,583 $ 1,024,912 $ ---PAGE BREAK--- - 49 - Capital Projects Street/Storm Capital Improvement Parks SDC Storm SDC Equipment Replacement GO Debt URA - $ - $ - $ - $ 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 $ Debt Service ---PAGE BREAK--- - 50 - 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 assessments 1,125,450 $ Licenses and permits 655,815 Charges for services 56,565 Intergovernmental 816,640 Miscellaneous 145,633 Total Revenues 2,800,103 EXPENDITURES Current General government 625,035 Highways and streets 62 Culture and recreation 721,394 Debt Service Principal 501,856 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 $ ---PAGE BREAK--- - 51 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - TRANSIT FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Charges for services 42,200 $ 47,200 $ 56,565 $ 9,365 $ Intergovernmental 418,675 463,675 449,572 (14,103) Miscellaneous 3,200 3,200 8,245 5,045 Total Revenues 464,075 514,075 514,382 307 EXPENDITURES Personal services 345,430 403,430 400,562 2,868 Materials and services 258,441 231,441 230,030 1,411 Capital outlay 15,000 64,000 37,819 26,181 Contingency 106,495 76,495 - 76,495 Total Expenditures 725,366 775,366 668,411 106,955 REVENUES OVER (UNDER) EXPENDITURES (261,291) (261,291) (154,029) 107,262 OTHER FINANCING SOURCES (USES) Transfers in 151,000 151,000 150,821 (179) NET CHANGE IN FUND BALANCE (110,291) (110,291) (3,208) 107,083 FUND BALANCE, beginning of year 110,291 110,291 137,284 26,993 FUND BALANCE, end of year - $ - $ 134,076 $ 134,076 $ Budget Amounts ---PAGE BREAK--- - 52 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - BUILDING FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Licenses and permits 306,001 $ 456,001 $ 553,274 $ 97,273 $ Intergovernmental 30,880 30,880 25,162 (5,718) Miscellaneous 13,200 13,200 39,169 25,969 Total Revenues 350,081 500,081 617,605 117,524 EXPENDITURES Personal services 204,522 234,522 234,897 (375) Materials and services 178,714 188,714 169,193 19,521 Contingency 38,845 183,845 - 183,845 Total Expenditures 422,081 607,081 404,090 202,991 REVENUES OVER (UNDER) EXPENDITURES (72,000) (107,000) 213,515 320,515 OTHER FINANCING SOURCES (USES) Proceeds from interfund loan 65,000 65,000 - (65,000) NET CHANGE IN FUND BALANCE (7,000) (42,000) 213,515 255,515 FUND BALANCE, beginning of year 7,000 42,000 94,836 52,836 FUND BALANCE, end of year - $ - $ 308,351 $ 308,351 $ Budget Amounts ---PAGE BREAK--- - 53 - 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 Original Final Actual Variance REVENUES Miscellaneous - $ - $ 15,631 $ 15,631 $ EXPENDITURES Materials and services 7,500 7,500 - 7,500 Contingency - 7,100 - 7,100 Total Expenditures 7,500 14,600 - 14,600 REVENUES OVER (UNDER) EXPENDITURES (7,500) (14,600) 15,631 30,231 OTHER FINANCING SOURCES (USES) Transfers in - 7,100 7,063 (37) NET CHANGE IN FUND BALANCE (7,500) (7,500) 22,694 30,194 FUND BALANCE (DEFICIT), beginning of year 7,500 7,500 (22,694) (30,194) FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 54 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – HOUSING REHABILITATION FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Miscellaneous 22,750 $ 22,750 $ 51,572 $ 28,822 $ EXPENDITURES Current Personal services 9,500 9,500 9,378 122 Materials and services 140,355 162,355 35,287 127,068 Contingency 97,895 97,895 - 97,895 Total Expenditures 247,750 269,750 44,665 225,085 NET CHANGE IN FUND BALANCE (225,000) (247,000) 6,907 253,907 FUND BALANCE, beginning of year 225,000 247,000 331,112 84,112 FUND BALANCE, end of year - $ - $ 338,019 $ 338,019 $ Budget Amounts ---PAGE BREAK--- - 55 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - RSVP FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Intergovernmental 46,189 $ 46,189 $ 17,856 $ (28,333) $ Miscellaneous - - 101 101 Total Revenues 46,189 46,189 17,957 (28,232) EXPENDITURES Current Personal services 45,313 45,313 33,584 11,729 Materials and services 8,092 8,092 5,820 2,272 Contingency 1,784 1,784 - 1,784 Total Expenditures 55,189 55,189 39,404 15,785 NET CHANGE IN FUND BALANCE (9,000) (9,000) (21,447) (12,447) FUND BALANCE, beginning of year 9,000 9,000 27,367 18,367 FUND BALANCE, end of year - $ - $ 5,920 $ 5,920 $ Budget Amounts ---PAGE BREAK--- - 56 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – CABLE FRANCHISE FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Licenses and permits 24,500 $ 24,500 $ 28,038 $ 3,538 $ Miscellaneous 50 50 15 (35) Total Revenues 24,550 24,550 28,053 3,503 EXPENDITURES Materials and services 26,050 26,050 21,018 5,032 NET CHANGE IN FUND BALANCE (1,500) (1,500) 7,035 8,535 FUND BALANCE, beginning of year 1,500 1,500 1,022 (478) FUND BALANCE, end of year - $ - $ 8,057 $ 8,057 $ Budget Amounts ---PAGE BREAK--- - 57 - 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 Original Final Actual Variance 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 278,000 278,000 480,218 202,218 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 58 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LIBRARY ENDOWMENT FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Miscellaneous 100 $ 100 $ 120 $ 20 $ EXPENDITURES Contingency 26,000 26,000 - 26,000 NET CHANGE IN FUND BALANCE (25,900) (25,900) 120 26,020 FUND BALANCE, beginning of year 25,900 25,900 26,001 101 FUND BALANCE, end of year - $ - $ 26,121 $ 26,121 $ Budget Amounts ---PAGE BREAK--- - 59 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – MUSEUM ENDOWMENT FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance 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 $ Budget Amounts ---PAGE BREAK--- - 60 - 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 Original Final Actual Variance REVENUES Miscellaneous 200 $ 200 $ 5,423 $ 5,223 $ EXPENDITURES Materials and services 10,000 10,000 3,200 6,800 Contingency 35,200 35,200 - 35,200 Total Expenditures 45,200 45,200 3,200 42,000 NET CHANGE IN FUND BALANCE (45,000) (45,000) 2,223 47,223 FUND BALANCE, beginning of year 45,000 45,000 49,653 4,653 FUND BALANCE, end of year - $ - $ 51,876 $ 51,876 $ Budget Amounts ---PAGE BREAK--- - 61 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Intergovernmental 40,000 $ 44,400 $ 44,000 $ (400) $ Miscellaneous - 2,250 1,795 (455) Total Revenues 40,000 46,650 45,795 (855) EXPENDITURES Materials and services 333 333 - 333 Capital outlay 100,000 111,650 70,274 41,376 Contingency 199,667 199,667 - 199,667 Total Expenditures 300,000 311,650 70,274 241,376 REVENUES OVER (UNDER) EXPENDITURES (260,000) (265,000) (24,479) 240,521 OTHER FINANCING SOURCES (USES) Transfers in 60,000 65,000 207,000 142,000 NET CHANGE IN FUND BALANCE (200,000) (200,000) 182,521 382,521 FUND BALANCE, beginning of year 200,000 200,000 (122,938) (322,938) FUND BALANCE (DEFICIT), end of year - $ - $ 59,583 $ 59,583 $ Budget Amounts ---PAGE BREAK--- - 62 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SPECIAL ASSESSMENT FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Taxes and assessments 34,685 $ 34,685 $ 19,534 $ (15,151) $ 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 62 985 Contingency 844,591 844,591 - 844,591 Total Expenditures 845,638 845,638 62 845,576 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 1,013,000 1,000,961 (12,039) FUND BALANCE, end of year - $ - $ 1,024,912 $ 1,024,912 $ Budget Amounts ---PAGE BREAK--- - 63 - 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 Original Final Actual Variance REVENUES Taxes and assessments 120,000 $ 120,000 $ - $ (120,000) $ Licenses and permits 315,000 315,000 - (315,000) Intergovernmental 924,111 924,111 280,050 (644,061) Miscellaneous 2,000 2,000 2,975 975 Total Revenues 1,361,111 1,361,111 283,025 (1,078,086) EXPENDITURES Materials and services 1,184 1,184 - 1,184 Capital outlay 2,676,333 2,676,333 721,876 1,954,457 Contingency 168,522 168,522 - 168,522 Total Expenditures 2,846,039 2,846,039 721,876 2,124,163 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 615,000 615,000 674,351 59,351 FUND BALANCE, end of year - $ - $ 235,500 $ 235,500 $ Budget Amounts ---PAGE BREAK--- - 64 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – PARKS SDC FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Licenses and permits 8,000 $ 8,000 $ 49,175 $ 41,175 $ Miscellaneous 1,000 1,000 1,990 990 Total Revenues 9,000 9,000 51,165 42,165 EXPENDITURES Materials and services 20,353 20,353 3,533 16,820 Capital outlay 135,000 135,000 24,345 110,655 Contingency 133,647 128,647 - 128,647 Total Expenditures 289,000 284,000 27,878 256,122 REVENUES OVER (UNDER) EXPENDITURES (280,000) (275,000) 23,287 298,287 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 300,000 300,000 446,130 146,130 FUND BALANCE, end of year - $ - $ 262,417 $ 262,417 $ Budget Amounts ---PAGE BREAK--- - 65 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STORM SDC FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Licenses and permits - $ - $ 25,328 $ 25,328 $ Miscellaneous - - 1,699 1,699 Total Revenues - - 27,027 27,027 EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - 27,027 27,027 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 420,000 420,000 443,092 23,092 FUND BALANCE, end of year - $ - $ 470,119 $ 470,119 $ Budget Amounts ---PAGE BREAK--- - 66 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – EQUIPMENT REPLACEMENT FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance REVENUES Miscellaneous 1,000 $ 1,000 $ 3,074 $ 2,074 $ 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) 140,369 692,456 FUND BALANCE, beginning of year 552,087 552,087 570,636 18,549 FUND BALANCE, end of year - $ - $ 711,005 $ 711,005 $ Budget Amounts ---PAGE BREAK--- - 67 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – POLICE CONSTRUCTION FUND YEAR ENDED JUNE 30, 2013 Original Final Actual Variance 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 - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 68 - 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 Original Final Actual Variance REVENUES Taxes and assessments 650,000 $ 650,000 $ 479,455 $ (170,545) $ Miscellaneous 800 800 999 199 Total Revenues 650,800 650,800 480,454 (170,346) 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 714,800 714,800 514,281 200,519 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 $ Budget Amounts ---PAGE BREAK--- - 69 - 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 Original Final Actual Variance REVENUES Taxes and assessments 550,000 $ 550,000 $ 626,461 $ 76,461 $ Miscellaneous 3,000 3,000 8,188 5,188 Total Revenues 553,000 553,000 634,649 81,649 EXPENDITURES Personal services 79,891 79,891 65,183 14,708 Materials and services 4,298,644 4,298,644 134,744 4,163,900 Debt service Principal 251,855 251,855 201,856 49,999 Interest 375,877 375,877 25,877 350,000 Contingency 1,026,733 1,026,733 - 1,026,733 Total Expenditures 6,033,000 6,033,000 427,660 5,605,340 REVENUES OVER (UNDER) EXPENDITURES (5,480,000) (5,480,000) 206,989 5,686,989 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) 206,989 1,686,989 FUND BALANCE, beginning of year 1,480,000 1,480,000 1,595,080 115,080 FUND BALANCE, end of year - $ - $ 1,802,069 $ 1,802,069 $ Budget Amounts ---PAGE BREAK--- - 70 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF FUND NET POSITION - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS JUNE 30, 2013 Water SDC Sewer SDC Total ASSETS Current Assets Cash and investments 741,370 $ 449,265 $ 1,190,635 $ Accounts receivable 16,680 23,816 40,496 Total Assets 758,050 473,081 1,231,131 LIABILITIES - - - NET POSITION: Restricted for construction 758,050 $ 473,081 $ 1,231,131 $ ---PAGE BREAK--- 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 SDC Sewer SDC Surfacewater OPERATING REVENUES - $ - $ - $ OPERATING EXPENSES - - - OPERATING INCOME (LOSS) - - - NONOPERATING REVENUES (EXPENSES) Investment revenue 2,876 1,555 - NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 2,876 1,555 - Capital contributions 92,991 197,939 - Transfers out - - (54,940) CHANGE IN NET POSITION 95,867 199,494 (54,940) NET POSITION, Beginning of year 662,183 273,587 54,940 NET POSITION, End of year 758,050 $ 473,081 $ - $ ---PAGE BREAK--- - 71 - Total - $ - - 4,431 4,431 290,930 (54,940) 240,421 990,710 1,231,131 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS YEAR ENDED JUNE 30, 2013 CASH FLOWS FROM OPERATING ACTIVITIES Paid to suppliers $ - $ - CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers out - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES System development revenue 76,311 174,123 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 2,876 1,555 Increase (Decrease) in Cash and Investments 79,187 175,678 CASH AND INVESTMENTS, Beginning of year 662,183 273,587 CASH AND INVESTMENTS, End of year $ 741,370 $ 449,265 Water Sewer SDC SDC RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Accounts payable and accrued liabilities $ - $ - Noncash Transactions Transfer of capital assets $ - $ - ---PAGE BREAK--- - 72 - Totals $ (514) $ (514) (55,161) (55,161) - 250,434 - 4,431 (55,675) 199,190 55,675 991,445 $ - $ 1,190,635 Surfacewater $ (514) $ (514) $ - $ - ---PAGE BREAK--- - 73 - 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 Original Final Actual Variance REVENUES Charges for services 3,167,025 $ 3,167,025 $ 3,236,888 $ 69,863 $ Miscellaneous 51,000 51,000 58,454 7,454 Interest earnings 3,500 3,500 3,827 327 Total Revenues 3,221,525 3,221,525 3,299,169 77,644 EXPENDITURES Personal services 1,283,761 1,283,761 1,287,000 (3,239) Materials and services 720,188 720,188 598,250 121,938 Debt service Principal 621,880 621,880 621,879 1 Interest 535,906 535,906 536,114 (208) Capital outlay 42,000 42,000 19,173 22,827 Contingency 1,132,133 1,132,133 - 1,132,133 Total Expenditures 4,335,868 4,335,868 3,062,416 1,273,452 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 405,000 405,000 447,431 42,431 Prior period adjustment - - 73,741 73,741 FUND BALANCE, beginning of year, as restated 405,000 405,000 521,172 116,172 FUND BALANCE, end of year - $ - $ 1,467,268 $ 1,467,268 $ Budget Amounts ---PAGE BREAK--- - 74 - 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 Original Final Actual Variance REVENUES Charges for services 6,553,084 $ 6,553,084 $ 6,548,215 $ (4,869) $ Miscellaneous 2,000 2,000 9,292 7,292 Interest earnings 4,000 4,000 10,604 6,604 Total Revenues 6,559,084 6,559,084 6,568,111 9,027 EXPENDITURES Personal services 1,835,229 1,835,229 1,853,398 (18,169) Materials and services 1,047,902 1,047,902 851,519 196,383 Debt service Principal 1,865,000 1,865,000 1,865,000 - Interest 1,085,663 1,085,663 1,085,663 - Capital outlay 142,097 142,097 2,227 139,870 Contingency 3,750,144 3,750,144 - 3,750,144 Total Expenditures 9,726,035 9,726,035 5,657,807 4,068,228 REVENUES OVER (UNDER) EXPENDITURES (3,166,951) (3,166,951) 910,304 4,077,255 OTHER FINANCING SOURCES (USES) Transfers in 2,944,724 2,944,724 2,947,664 2,940 Transfers out (389,773) (389,773) (389,773) - Total Other Financing Sources and Uses 2,554,951 2,554,951 2,557,891 2,940 NET CHANGE IN FUND BALANCE (612,000) (612,000) 3,468,195 4,080,195 FUND BALANCE, beginning of year as originally reported 612,000 612,000 641,619 29,619 Prior period adjustment - - 73,741 73,741 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 $ Budget Amounts ---PAGE BREAK--- - 75 - 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 Original Final Actual Variance REVENUES Interest earnings 85,000 $ 85,000 $ 73,974 $ (11,026) $ EXPENDITURES Materials and services 6,839 6,839 - 6,839 Capital outlay 13,732,590 13,732,590 1,172,787 12,559,803 Total Expenditures 13,739,429 13,739,429 1,172,787 12,566,642 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 16,400,000 17,574,688 1,174,688 Prior period adjustment - - (53,000) (53,000) FUND BALANCE, beginning of year, as restated 16,400,000 16,400,000 17,521,688 (53,000) FUND BALANCE, end of year - $ - $ 13,530,151 $ 12,355,463 $ Budget Amounts ---PAGE BREAK--- - 76 - 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 Original Final Actual Variance REVENUES Interest earnings 8,000 $ 8,000 $ 17,106 $ 9,106 $ EXPENDITURES Materials and services 4,000 4,000 - 4,000 Capital outlay 3,975,215 3,975,215 652,999 3,322,216 Contingency 634,446 634,446 - 634,446 Total Expenditures 4,613,661 4,613,661 652,999 3,960,662 REVENUES OVER (UNDER) EXPENDITURES (4,605,661) (4,605,661) (635,893) 3,969,768 OTHER FINANCING SOURCES (USES) Transfers in 524,661 524,661 39,221 (485,440) 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 4,835,000 4,678,901 (156,099) Prior period adjustment - - (168,509) (168,509) FUND BALANCE, beginning of year, as restated 4,835,000 4,835,000 4,510,392 (324,608) FUND BALANCE, end of year - $ - $ 3,159,720 $ 2,835,112 $ Budget Amounts ---PAGE BREAK--- - 77 - 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 Original Final Actual Variance REVENUES Licenses and permits 45,000 $ 45,000 $ 76,311 $ 31,311 $ Interest earnings 1,300 1,300 2,876 1,576 Total Revenues 46,300 46,300 79,187 32,887 EXPENDITURES Materials and services 494 494 - 494 Contingency 58,214 58,214 - 58,214 Total Expenditures 58,708 58,708 - 58,708 REVENUES OVER (UNDER) EXPENDITURES (12,408) (12,408) 79,187 91,595 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 $ Budget Amounts ---PAGE BREAK--- - 78 - 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 Original Final Actual Variance 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) 175,678 320,678 FUND BALANCE, beginning of year 145,000 145,000 273,587 128,587 FUND BALANCE, end of year - $ - $ 449,265 $ 449,265 $ Budget Amounts ---PAGE BREAK--- - 79 - 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 Original Final Actual Variance 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 52,000 54,940 2,940 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF FUND NET POSITION - INTERNAL SERVICE FUNDS JUNE 30, 2013 Information Services Insurance Technical & Environmental Services ASSETS Current Assets Cash and investments 89,465 $ 397,402 $ 200,022 $ LIABILITIES Current Liabilities Accounts payable 21,101 587 16,942 Noncurrent Liabilities Accrued compensated absences - - 106,446 Total Liabilities 21,101 587 123,388 NET POSITION: Unrestricted 68,364 $ 396,815 $ 76,634 $ ---PAGE BREAK--- - 80 - Total 686,889 $ 38,630 106,446 145,076 541,813 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2013 Information Services Insurance Technical & Environmental Services OPERATING REVENUES Licenses and permits - $ - $ 19,628 $ Charges for services 659,864 500,005 1,121,850 Miscellaneous 351 922 1,367 Total Operating Revenues 660,215 500,927 1,142,845 OPERATING EXPENSES Personal services 344,964 55,443 948,036 Materials and services 297,400 349,652 494,523 Total Operating Expenses 642,364 405,095 1,442,559 OPERATING INCOME (LOSS) 17,851 95,832 (299,714) NONOPERATING REVENUES (EXPENSES) Investment revenue 160 1,374 485 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 18,011 97,206 (299,229) Transfers in - - 362,322 Transfers out - - (5,000) CHANGE IN NET POSITION 18,011 97,206 58,093 NET POSITION, Beginning of year 50,353 299,609 18,541 NET POSITION, End of year 68,364 $ 396,815 $ 76,634 $ ---PAGE BREAK--- - 81 - Building Maintenance Total - $ 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 (49,732) (54,732) (49,732) 123,578 49,732 418,235 - $ 541,813 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2013 Technical and Information Environmental Services Insurance Services CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 664,215 $ 500,927 $ 1,142,845 $ 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) 26,693 (253,588) 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 1,374 485 Increase (Decrease) in Cash and Investments (3,976) 28,032 103,152 CASH AND INVESTMENTS, Beginning of year 93,441 369,370 96,870 CASH AND INVESTMENTS, End of year 89,465 $ 397,402 $ 200,022 $ RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) 17,851 $ 95,832 $ (299,714) $ 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) $ 26,693 $ (253,588) $ Noncash Transactions Transfer of capital assets - $ - $ - $ ---PAGE BREAK--- - 82 - Building Maintenance Totals - $ 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 - $ 686,889 $ - $ (186,031) $ - 4,000 (17,395) 13,882 (20,717) (100,666) (38,112) $ (268,815) $ - $ - $ ---PAGE BREAK--- - 83 - 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 Original Final Actual Variance REVENUES Charges for services 634,395 $ 634,395 $ 659,864 $ 25,469 $ Miscellaneous - - 352 352 Interest earnings - - 160 160 Total Revenues 634,395 634,395 660,376 25,981 EXPENDITURES Personal services 345,169 345,169 344,964 205 Materials and services 246,339 246,339 222,858 23,481 Capital outlay 75,000 75,000 74,542 458 Contingency 30,887 30,887 - 30,887 Total Expenditures 697,395 697,395 642,364 55,031 NET CHANGE IN FUND BALANCE (63,000) (63,000) 18,012 81,012 FUND BALANCE, beginning of year 63,000 63,000 50,352 (12,648) FUND BALANCE, end of year - $ - $ 68,364 $ 68,364 $ Budget Amounts ---PAGE BREAK--- - 84 - 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 Original Final Actual Variance REVENUES Charges for services 436,502 $ 436,502 $ 500,005 $ 63,503 $ Miscellaneous 12,624 12,624 922 (11,702) Interest earnings - - 1,374 1,374 Total Revenues 449,126 449,126 502,301 53,175 EXPENDITURES Personal services 57,409 57,409 55,443 1,966 Materials and services 476,717 476,717 349,652 127,065 Total Expenditures 534,126 534,126 405,095 129,031 NET CHANGE IN FUND BALANCE (85,000) (85,000) 97,206 182,206 FUND BALANCE, beginning of year 85,000 85,000 299,609 214,609 FUND BALANCE, end of year - $ - $ 396,815 $ 396,815 $ Budget Amounts ---PAGE BREAK--- - 85 - 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 Original Final Actual Variance 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 services 593,947 593,947 494,523 99,424 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 $ Budget Amounts ---PAGE BREAK--- - 86 - 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 Original Final Actual Variance 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 44,000 44,000 67,127 23,127 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- OTHER FINANCIAL SCHEDULES ---PAGE BREAK--- - 87 - CITY OF WOODBURN, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES YEAR ENDED JUNE 30, 2013 Uncollected Interest, Uncollected 2012-13 Balance Discounts and Balances Tax Year Levy July 1, 2012 Adjustments Collections June 30, 2013 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 county 58,813 Property taxes receivable 676,014 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON SCHEDULE OF DEBT PRINCIPAL AND INTEREST TRANSACTIONS YEAR ENDED JUNE 30, 2013 Interest Date of Fiscal Year Rates Issue of Maturity PRINCIPAL TRANSACTIONS Governmental Activities Series 2005 GO Bonds 4.85-4.9% 2005 2024-25 1999 OEDD Loan 5.01% 1999 2017-18 2005 URA Loan 4.22% 2005 2015-16 Subtotal, governmental activities Business-type Activities Series 2003 Water Bonds 3.00-4.63% 2003 2028-29 2005 OEDD Loan 4.21% 2005 2024-25 2005 SDWR Loan 4.21% 2005 2024-25 Series 2011 Sewer Bonds Subtotal, business-type activities Unmatured Interest Outstanding Interest Date of July 1, Rates Issue 2012 INTEREST TRANSACTIONS Governmental Activities Series 2005 GO Bonds 4.85-4.9% 2005 1,688,838 $ 1999 OEDD Loan 5.01% 1999 33,379 2005 URA Loan 4.22% 2005 51,893 Subtotal, governmental activities 1,774,110 Business-type Activities Series 2003 Water Bonds 3.00-4.63% 2003 2,964,048 2005 OEDD Loan 4.21% 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 $ ---PAGE BREAK--- - 88 - Outstanding Outstanding July 1, New Principal June 30, 2012 Issues Paid 2013 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 New Interest June 30, Issues Paid/Matured 2013 - $ (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 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS JUNE 30, 2013 Fiscal Year Ending June 30, 2014 $ 320,000 $ 203,781 $ 523,781 $ 29,663 $ 7,857 $ 32,351 2015 335,000 192,261 527,261 29,895 6,373 36,268 2016 350,000 179,866 529,866 30,141 4,879 35,020 2017 370,000 166,566 536,566 30,399 3,371 33,770 2018 385,000 152,136 537,136 35,675 1,820 37,495 2019 405,000 136,736 541,736 - - - 2020 425,000 120,536 545,536 - - - 2021 445,000 103,536 548,536 - - - 2022 470,000 85,180 555,180 - - - 2023 495,000 65,793 560,793 - - - 2024 520,000 45,003 565,003 - - - 2025 545,000 23,163 568,163 - - - 2026 - - - - - - 2027 - - - - - - 2028 - - - - - - 2029 - - - - - - 2030 - - - - - - 2031 - - - - - - $ 5,065,000 $ 1,474,557 $ 6,539,557 $ 155,773 $ 24,300 $ 180,073 Principal Interest Total Principal Interest Total 2005 General Obligation Bonds 1999 OEDD Loan ---PAGE BREAK--- - 89 - $ 210,509 $ 17,223 $ 227,732 $ 282,734 $ 277,241 $ 559,975 219,534 8,198 227,732 289,548 266,498 556,046 56,338 595 56,933 301,530 254,916 556,446 - - - 313,591 242,854 556,445 - - - 325,789 229,997 555,786 - - - 343,132 216,314 559,446 - - - 355,631 201,559 557,190 - - - 373,299 185,912 559,211 - - - 391,148 169,113 560,261 - - - 404,158 151,316 555,474 - - - 427,356 132,624 559,980 - - - 445,702 112,858 558,560 - - - 464,204 92,245 556,449 - - - 487,867 70,775 558,642 - - - 511,700 48,211 559,911 - - - 530,709 24,547 555,256 - - - - - - - - - - - - $ 486,381 $ 26,016 $ 512,397 $ 6,248,098 $ 2,676,980 $ 8,925,078 Interest Total Principal Interest Total Principal 2005 URA Loan 2003 Water Bonds ---PAGE BREAK--- CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS (Continued) JUNE 30, 2013 Fiscal Year Ending June 30, 2014 $ 182,792 $ 117,034 $ 299,826 $ 182,792 $ 117,034 $ 299,826 2015 190,487 109,339 299,826 190,487 109,339 299,826 2016 198,507 101,319 299,826 198,507 101,319 299,826 2017 206,864 92,962 299,826 206,864 92,962 299,826 2018 215,573 84,253 299,826 215,573 84,253 299,826 2019 224,649 75,178 299,827 224,649 75,178 299,827 2020 234,106 65,720 299,826 234,106 65,720 299,826 2021 243,962 55,864 299,826 243,962 55,864 299,826 2022 254,233 45,593 299,826 254,233 45,593 299,826 2023 264,936 34,890 299,826 264,936 34,890 299,826 2024 276,090 23,736 299,826 276,090 23,736 299,826 2025 287,713 12,113 299,826 287,723 12,113 299,836 2026 - - - - - - 2027 - - - - - - 2028 - - - - - - 2029 - - - - - - 2030 - - - - - - 2031 - - - - - - $ 2,779,912 $ 818,001 $ 3,597,913 $ 2,779,922 $ 818,001 $ 3,597,923 Interest Total Principal Interest Total Principal 2005 OEDD Loan 2005 SDWR Loan ---PAGE BREAK--- - 90 - $ 2,265,153 $ 1,044,559 $ 3,309,712 $ 3,473,643 $ 1,784,729 $ 5,258,372 2,755,000 972,713 3,727,713 4,009,951 1,664,721 5,674,672 2,478,685 901,377 3,380,062 3,613,708 1,544,271 5,157,979 2,603,647 930,165 3,533,812 3,731,365 1,528,880 5,260,245 3,165,000 724,563 3,889,563 4,342,610 1,277,022 5,619,632 3,615,000 629,613 4,244,613 4,812,430 1,133,019 5,945,449 3,469,529 999,333 4,468,862 4,718,372 1,452,868 6,171,240 3,696,001 1,042,861 4,738,862 5,002,224 1,444,037 6,446,261 4,870,000 266,113 5,136,113 6,239,614 611,592 6,851,206 2,013,541 1,144,071 3,157,612 3,442,571 1,430,960 4,873,531 55,000 20,412 75,412 1,554,536 245,511 1,800,047 60,000 18,212 78,212 1,626,138 178,459 1,804,597 60,000 15,813 75,813 524,204 108,058 632,262 65,000 13,412 78,412 552,867 84,187 637,054 65,000 10,812 75,812 576,700 59,023 635,723 70,000 8,131 78,131 600,709 32,678 633,387 75,000 5,156 80,156 75,000 5,156 80,156 45,000 1,969 46,969 45,000 1,969 46,969 $ 31,426,556 $ 8,749,285 $ 40,175,841 $ 48,941,642 $ 14,587,140 $ 63,528,782 Total Principal Interest Total Principal Interest 2011 Sewer Bonds Totals ---PAGE BREAK--- REGULATORY SECTION ---PAGE BREAK--- - 91 - 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: ---PAGE BREAK--- - 92 - 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 [SSN REDACTED] - 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