Document Woodburn_doc_77614d9345

City of Woodburn, Oregon Comprehensive Annual Financial Report For the year Ended June 30, 2020 ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2020 Prepared by City of Woodburn Finance Department Anthony Turley, Finance Director ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal i-iv Organization of the City of Woodburn, Oregon v List of Officials vi FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT 1-3 MANAGEMENT’S DISCUSSION AND ANALYSIS 4-9 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 Net Position - Proprietary Funds 16 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds 17 Statement of Cash Flows - Proprietary Funds 18-19 Notes to Basic Financial Statements 20-49 REQUIRED SUPPLEMENTARY INFORMATION Combining Balance Sheet - Budgetary Funds Reported as General Fund 50 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budgetary Funds reported as General Fund 51 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund 52 PERS Reserve Fund 53 Street Fund 54 Urban Renewal Fund 55 Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset) – Oregon Public Employee’s Retirement System 56 Schedule of the City’s Contributions – Oregon Public Employee’s Retirement System 57 Schedule of Changes in Total Other Post-Employment Benefits Liability and Related Ratios - Implicit Rate Subsidy 58 Schedule of the City’s Proportionate Share of the Net OPEB Liability (Asset) – Oregon Public Employee’s Retirement System Retiree Health Insurance Account 59 Schedule of the City’s Contributions – Oregon Public Employee’s Retirement System Retiree Health Insurance Account 60 Notes to the Required Supplementary Information 61-62 ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page FINANCIAL SECTION (Continued) SUPPLEMENTARY INFORMATION Governmental Funds Combining Balance Sheet – Nonmajor Funds 63-64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Funds 65-66 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Transit Fund 67 Building Inspection Fund 68 Asset Forfeiture Fund 69 Housing Rehabilitation Fund 70 Lavelle Black Trust Fund 71 Special Assessment Fund 72 Street & Storm Capital Construction Fund 73 Parks SDC Fund 74 General Capital Construction Fund 75 Street SDC Fund 76 Storm SDC Fund 77 Equipment Replacement Fund 78 GO Debt Service Fund 79 Proprietary Funds Enterprise Funds Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP Basis) and Actual Water Operations Combining 80 Water Fund 81 Water SDC Fund 82 Water Capital Construction Fund 83 Sewer Operations Combining 84 Sewer Fund 85 Sewer SDC Fund 86 Sewer Capital Construction Fund 87 Internal Services Funds Combining Statement of Fund Net Position 88 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 89 Combining Statement of Cash Flows 90 Schedules of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) Budget and Actual Information Technology Fund 91 Insurance Fund 92 STATISTICAL SECTION FINANCIAL TRENDS Net Position by Component 93 Changes in Net Position 94-95 Fund Balance of Governmental Funds 96 Changes in Fund Balances of Governmental Funds 97 ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page STATISTICAL SECTION (Continued) REVENUE CAPACITY Market and Assessed Value of Taxable Property 98 Direct and Overlapping Governments 99 Principal Property Taxpayers 100 Property Tax Levies and Collections 101 DEBT CAPACITY Ratios of Outstanding Debt by Type 102 Ratios of General Bonded Debt Outstanding 103 Direct and Overlapping Governmental Activities Debt 104 Legal Debt Margin 105 Pledged Revenue Coverage 106 DEMOGRAPHIC AND ECONOMIC INFORMATION Demographic and Economic Statistics 107 Principal Employers 108 OPERATING INFORMATION Full Time Equivalent Employees by Function 109 Operating Indicators by Function 110 Capital Asset Statistics by Function 111 OTHER INFORMATION Water System Coverage Calculation 112 Top Ten Water Customers 113 Sewer System Coverage Calculation 114 Top Ten Sewer Customers 115 COMPLIANCE SECTION Independent Auditor’s Report Required by Oregon State Regulations 116-117 ---PAGE BREAK--- INTRODUCTORY SECTION ---PAGE BREAK--- - i - City of Woodburn 270 Montgomery Street Woodburn, OR 97071 (503) 982-5222 / (503) 982-5244 FAX www.ci.woodburn.or.us November 25, 2020 To the Citizens of Woodburn, Honorable Mayor, City Council, and City Administrator: It is my pleasure to submit the Comprehensive Annual Financial Report (CAFR) of the City of Woodburn, Oregon, for the fiscal year ended June 30, 2020. State law requires that a CAFR and component unit financial statements be published within six months of the fiscal year end and be audited in accordance with generally accepted auditing standards by independent certified public accountants. Independent auditors, Grove, Mueller & Swank, P.C., have issued an unmodified opinion on the City of Woodburn’s financial statements for the fiscal year ended June 30, 2020. The independent auditors’ report is presented in the Financial Section of this report. Responsibility for the completeness and reliability of the information contained in this report rests with the City’s management and is based on an internal control structure designed for this purpose. The internal control structure is designed to provide reasonable, rather than absolute, assurance that these objectives are met, as the cost of the internal control should not exceed the related benefits. In the Management’s Discussion and Analysis (MD&A) section of this report, a narrative introduction, overview, and analysis of the basic financial statements is provided. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with the MD&A. CITY PROFILE The City of Woodburn is a municipal corporation which operates under a Council- Manager form of government. Policy making and legislative authority are vested on the City Council which consists of an elected Mayor (two-year term position) and six councilors (four-year term positions). The City Council is responsible for passing ordinances, resolutions, adopting a budget, and hiring the City Administrator and City Attorney among other things. The City Administrator is responsible for carrying out Council ordinances and policies, managing the daily operations, and appointing department heads. Woodburn is located in the Willamette Valley, halfway between the larger urban areas of Portland and Salem. The city was incorporated as Woodburn on February 20, 1889. The City of Woodburn, with a population of 25,135, is Oregon’s 23rd most populated city, and 3rd populated city in Marion County. The City provides a full range of municipal services, including but not limited to: police, water, wastewater, municipal court, public works (water, sewer, storm, and transportation), economic development, community planning and building inspections, transit, parks, recreation, aquatics, and library. ---PAGE BREAK--- - ii - REPORTING ENTITY The financial statements include information for the City of Woodburn and its blended component unit, the Urban Renewal Agency of the City of Woodburn. BUDGET PROCESS The Oregon Constitution and Oregon Revised Statutes 294 require an adopted balanced budget by July 1, and that the fiscal year for local governments is July 1 through June 30. The budget sets forth City Council’s goals and objectives, and identifies the resources necessary to accomplish them. The legal level of budgetary control, as adopted by Council Resolution, is by fund, although department level detail is shown. Appropriations lapse at fiscal year-end and incomplete projects must be re-appropriated in the following fiscal year as part of the adoption of the annual budget. ECONOMIC ENVIRONMENT Woodburn has high concentrations of employment across several traded‐sector clusters. These clusters are key target industries for Woodburn and include:  Production Technology and Machinery: manufacturing of machinery for food production, automatic sprinklers systems, bailing machines, hydraulic jacks, and other machinery production.  Plastics Manufacturing: plastic and rubber products, chemical manufacturing, and plumbing fixtures. This cluster is strongly linked to production technology, machinery, and other chemical manufacturing.  Metal Product Manufacturing: prefabricated metal building and component manufacturing, ornamental and architectural metal work manufacturing, bathtubs and sinks, metal pipe hangars, fire escapes, grills and grill work, and all other miscellaneous fabricated metal product manufacturing.  Food Processing and Manufacturing: baked goods, fruit and vegetable canning, frozen foods, confectionary manufacturing, and other food related manufacturing. Employment patterns in Woodburn, Marion County, and the Portland Region suggest that Woodburn has competitive advantages and opportunities for business development in these rapidly growing clusters:  Apparel Manufacturing: cutting and sewing apparel, embroidering on textile products, carpet cutting and binding, sleeping bag manufacturing, hats and glove manufacturing, and other apparel manufacturing.  Distribution and E‐Commerce: wholesale trade, farm supplies and merchant wholesalers, refrigerated warehousing and storage, packaging and labeling services, or other warehouse and distribution.  Information Technology and Analytic Technology: software publishers, electronic computer manufacturing, semiconductor manufacturing, laboratory instrument manufacturing. - 2.0 4.0 6.0 8.0 10.0 12.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year-over-Year Unemployment Rates Oregon Marion County Woodburn ---PAGE BREAK--- - iii - Source: State of Oregon Employment Department Oregon’s unemployment rates have dropped dramatically over the last ten years. However, the COVID 19 pandemic has impacted the economy and resulted in increased unemployment. In September 2020, Oregon’s year- over-year unemployment rate was 7.9 percent, and Woodburn’s rate was 7.9 percent, which matches the U.S. unemployment rate of 7.9 percent for the same period. Factors contributing to Woodburn’s low unemployment rates include people’s; availability, quality, skills, education/experience, and wages. Within the Woodburn Urban Growth Boundary there are 11,718 employees1. Beyond Woodburn, as of October 2020, Salem Region has a labor force of 193,805 and the Portland Region of 1,293,6851. This means that Woodburn businesses have access to a mix of highly educated skilled and unskilled workers from across the Salem and Portland Regions. MAJOR ISSUES Development of the FY 2020-21 budget continued the focus on delivery of services to the community with cautious projections due to rising costs in the areas listed below, and an external focus to create a community leadership academy and exploration of a non-profit development center in Woodburn.  COVID-19 Pandemic  Wages,  Public Employee Retirement System (PERS),  Facility maintenance,  Infrastructure needs, and  Technology needs The current budget includes set-asides for these anticipated costs. The future budgets will continue to be challenged with the need to balance delivery of service with fiscal prudence. LONG-TERM FINANCIAL PLANNING A five-year forecast is prepared for each primary operating fund based on current service levels and conservative assumptions. Staff uses the financial plans to make recommendations for utility rate setting, debt refinancing opportunities, capital project budgets, and projection of operating expenses. Revenues are also projected to ensure that operating and capital needs are met. RELEVANT FINANCIAL POLICIES The City of Woodburn completes an annual financial plan, which includes a review of the budget policies, fiscal strategy, and five-year forecast. Policy highlights include:  Annual review to maintain fiscal responsibility, a balanced budget, and obtain policy direction.  Identification of goals that maximize dedicated funding resources.  Establishment of General Fund goals to set program priority, maximize City Council’s discretion, establish a goal of cost efficiency, pursuit new revenue sources, and identify potential new programs.  Reserve and contingency policy target levels.  Compensation and benefit policies which address wages, health care and retirement costs.  Capital improvement guidelines to set the importance of full cost identification, planning, and funding.  Debt management policies to ensure thorough analysis of options.  Investment parameters that prioritize fiscal safety, legal compliance, and a market rate of return.  Annual audit policy to ensure financial compliance.  Resource reduction strategy to provide guidance in fiscally challenged periods. 1 Source: State of Oregon Employment Department, August 2019 Employment and Unemployment in Oregon Counties ---PAGE BREAK--- ---PAGE BREAK--- - v - ORGANIZATION OF THE CITY OF WOODBURN Source: City of Woodburn, FY 2020-21 Adopted Budget - Functional Organization Chart ---PAGE BREAK--- - vi - CITY OF WOODBURN, OREGON JUNE 30, 2020 MAYOR AND COUNCIL MEMBERS Name Term Expires Mayor Eric Swenson December 31, 2020 Council Members Debbie Cabrales December 31, 2020 Robert Carney December 31, 2022 Mary Beth Cornwell December 31, 2022 Lisa Ellsworth December 31, 2020 Eric Morris December 31, 2020 Sharon Schaub December 31, 2022 The above individuals may be contacted at the address below. Staff Scott Derickson, City Administrator N. Robert Shields, City Attorney Anthony Turley, Finance Director City of Woodburn, Oregon 270 Montgomery Street Woodburn, Oregon 97071 ---PAGE BREAK--- FINANCIAL SECTION ---PAGE BREAK--- - 1 - 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 the City of Woodburn as of and for the year ended June 30, 2020, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 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. ---PAGE BREAK--- - 2 - Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Woodburn as of June 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis (MD&A) and the schedules of revenues, expenditures and changes in fund balance – budget and actual for the General, PERS Reserve, Street and Urban Renewal funds (“the budgetary schedules”), the City’s PERS schedules and the City's OPEB schedules 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 management’s discussion and analysis, PERS schedules and OPEB schedules described in the preceding paragraph in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The budgetary schedules described above were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The budgetary schedules have been subject to the auditing procedures applied in the audit of the basis financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 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 supplementary information is presented for the purpose of additional analysis and is not a required part of the basic financial statements. The supplementary 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, or other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly presented, in all material respects, in relation to the basic financial statements as a whole. ---PAGE BREAK--- - 3 - Other Information The introductory and statistical sections, and other information have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 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 25, 2020 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: Katherine R. Wilson, A Shareholder November 25, 2020 ---PAGE BREAK--- - 4 - CITY OF WOODBURN Year Ended June 30, 2020 MANAGEMENT’S DISCUSSION AND ANALYSIS The Management’s Discussion and Analysis of the City of Woodburn’s Comprehensive Annual Financial Report (CAFR) presents a discussion and analysis of the City’s financial performance during the fiscal year ended June 30, 2020. 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: 2020 2019 Change Net position 140,295,337 $ 131,617,868 $ 8,677,469 $ Change in net position 8,677,469 6,895,584 1,781,885 Governmental activities net position 79,813,938 74,880,614 4,933,324 Business-type activities fund net position 60,481,399 56,737,254 3,744,145 Change in governmental net position 4,933,324 3,461,003 1,472,321 Change in proprietary fund net position 3,744,145 3,434,581 309,564 OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’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, deferred outflows, liabilities, deferred inflows and activities of the City. The measurement focus and basis of accounting are the same for the entire City. 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’s assets, deferred outflows, liabilities and deferred inflows, with the difference 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 taxpayers and may equate to the nearest that governments can determine the “bottom line”. ---PAGE BREAK--- - 5 - 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 include general government, public safety, highways and streets, culture and recreation, and economic development. Business-type activities are operations funded primarily through charges to external users of goods and services. Business-type activities include water and sewer. 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 has two types of fund categories: governmental funds and proprietary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources and use the modified accrual basis of accounting. Operating statements include all sources and uses of financial resources, and display the excess of revenues and other financial sources over (under) expenditures and other uses. Included in the balance sheet are liquid assets and receivables that will be converted into cash currently and short-term liabilities, including payables to vendors and employees. Unmatured bond principal or liabilities for compensated absences not to be paid in the fiscal year are not included. Because the governmental fund statements do not encompass the long-term focus of the government-wide statements, reconciliations are provided on the subsequent page of the governmental fund statements. The emphasis is on major funds that account for the predominant assets and activities of all funds. The City maintains sixteen individual governmental funds. Information is presented separately for the General Fund, Street Fund, and Urban Renewal 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 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. Enterprise funds are presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer 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 and information 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 Water Operations and Sewer Operations. The internal service funds are combined into a single column in the proprietary fund financial statements. The City 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. ---PAGE BREAK--- - 6 - 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. GOVERNMENT-WIDE FINANCIAL ANALYSIS The City had $177,624,719 in total assets, $9,065,369 in total deferred outflows, $44,234,382 in total liabilities and $2,160,369 in total deferred inflows, resulting in combined net position of $140,295,337 for governmental and business-type activities. The largest component of the City’s net position reflects its net 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 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, increased $4,339,067 over the prior year mainly due to renovation work at City Hall and urban renewal projects in the downtown area. Business-type capital assets, net of depreciation, decreased $1,063,973 over the prior year due to current year depreciation. Total liabilities for both governmental and business-type activities decreased by $5,174,039 from the prior year mainly due to payments on long-term debt. Overall, the City’s financial net position increased by $8,677,469 The majority of this increase is due to an increase in capital assets and a decrease in long-term debt outstanding. 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 22,189,818 $ 27,305,966 $ 49,495,784 $ 26,764,428 $ 27,717,274 $ 54,481,702 $ (4,574,610) $ (411,308) $ (4,985,918) $ Other assets 2,757,594 943,079 3,700,673 2,133,650 928,577 3,062,227 623,944 14,502 638,446 Capital assets 70,551,381 53,876,881 124,428,262 66,212,314 54,940,854 121,153,168 4,339,067 (1,063,973) 3,275,094 Total Assets 95,498,793 82,125,926 177,624,719 95,110,392 83,586,705 178,697,097 388,401 (1,460,779) (1,072,378) Deferred outflows 7,402,891 1,662,478 9,065,369 4,333,212 840,968 5,174,180 3,069,679 821,510 3,891,189 Other liabilities 14,505,304 3,954,800 18,460,104 14,203,263 3,178,115 17,381,378 302,041 776,685 1,078,726 Long-term debt 6,920,670 18,853,608 25,774,278 8,157,849 23,869,194 32,027,043 (1,237,179) (5,015,586) (6,252,765) Total Liabilities 21,425,974 22,808,408 44,234,382 22,361,112 27,047,309 49,408,421 (935,138) (4,238,901) (5,174,039) Deferred inflows 1,661,772 498,597 2,160,369 2,201,878 643,110 2,844,988 (540,106) (144,513) (684,619) Net position: Net investment in capital assets 64,447,990 46,922,723 111,370,713 58,807,325 43,073,472 101,880,797 5,640,665 3,849,251 9,489,916 Restricted 12,238,720 17,249,531 29,488,251 13,987,334 17,081,733 31,069,067 (1,748,614) 167,798 (1,580,816) Unrestricted 3,127,228 (3,690,855) (563,627) 2,085,955 (3,417,951) (1,331,996) 1,041,273 (272,904) 768,369 Total Net Position 79,813,938 $ 60,481,399 $ 140,295,337 $ 74,880,614 $ 56,737,254 $ 131,617,868 $ 4,933,324 $ 3,744,145 $ 8,677,469 $ Change 2020 2019 Governmental Activities The City’s net position from governmental activities increased $4,933,324 from June 30, 2019 to June 30, 2020 due to an increase in program revenues coupled with controlled program expenses. ---PAGE BREAK--- - 7 - Business-type Activities The City’s net position from business-type activities increased $3,744,145 from June 30, 2019 to June 30, 2020 due mainly to the reduction of long-term debt coupled with an increase in charges for services and controlled expenses. Statement of Activities The following table reflects the condensed Statement of Activities compared to the prior year. Business- Business- Business- Governmental type Governmental type Governmental type Activities Activities Total Activities Activities Total Activities Activities Total Revenues Program Revenues Charges for service 2,642,482 $ 12,112,632 $ 14,755,114 $ 2,446,723 $ 11,863,555 $ 14,310,278 $ 195,759 $ 249,077 $ 444,836 $ Operating grants and contributions 4,346,664 - 4,346,664 2,582,883 - 2,582,883 1,763,781 - 1,763,781 Capital grants and contributions 2,506,331 425,801 2,932,132 934,723 376,165 1,310,888 1,571,608 49,636 1,621,244 Total Program Revenues 9,495,477 12,538,433 22,033,910 5,964,329 12,239,720 18,204,049 3,531,148 298,713 3,829,861 General Revenues Property taxes 10,908,076 - 10,908,076 10,467,041 - 10,467,041 441,035 - 441,035 Franchise taxes 1,528,351 - 1,528,351 1,537,523 - 1,537,523 (9,172) - (9,172) Other taxes 491,023 - 491,023 595,650 - 595,650 (104,627) - (104,627) Intergovernmental 903,481 - 903,481 831,319 - 831,319 72,162 - 72,162 Other 561,074 693,058 1,254,132 1,051,046 836,257 1,887,303 (489,972) (143,199) (633,171) Total General Revenues 14,392,005 693,058 15,085,063 14,482,579 836,257 15,318,836 (90,574) (143,199) (233,773) Total Revenues 23,887,482 13,231,491 37,118,973 20,446,908 13,075,977 33,522,885 3,440,574 155,514 3,596,088 Expenses General government 4,673,660 - 4,673,660 1,162,602 - 1,162,602 3,511,058 - 3,511,058 Public safety 6,982,033 - 6,982,033 7,687,490 - 7,687,490 (705,457) - (705,457) Highways and streets 2,113,284 - 2,113,284 2,787,782 - 2,787,782 (674,498) - (674,498) Culture and recreation 4,139,885 - 4,139,885 4,226,653 - 4,226,653 (86,768) - (86,768) Economic development 2,025,642 - 2,025,642 2,023,962 - 2,023,962 1,680 - 1,680 Interest on long-term debt 59,907 - 59,907 76,949 - 76,949 (17,042) - (17,042) Water - 2,679,610 2,679,610 - 3,012,632 3,012,632 - (333,022) (333,022) Sewer - 5,767,483 5,767,483 - 5,649,231 5,649,231 - 118,252 118,252 Total Expenses 19,994,411 8,447,093 28,441,504 17,965,438 8,661,863 26,627,301 2,028,973 (214,770) 1,814,203 Changes in Net Position Before Transfers 3,893,071 4,784,398 8,677,469 2,481,470 4,414,114 6,895,584 1,411,601 370,284 1,781,885 Transfers 1,040,253 (1,040,253) - 979,533 (979,533) - 60,720 (60,720) - Change in Net Position 4,933,324 3,744,145 8,677,469 3,461,003 3,434,581 6,895,584 1,472,321 309,564 1,781,885 Beginning Net Position 74,880,614 56,737,254 131,617,868 71,419,611 53,302,673 124,722,284 3,461,003 3,434,581 6,895,584 Ending Net Position 79,813,938 $ 60,481,399 $ 140,295,337 $ 74,880,614 $ 56,737,254 $ 131,617,868 $ 4,933,324 $ 3,744,145 $ 8,677,469 $ 2020 2019 Change Governmental Activities. Total revenues for the City’s governmental activities were $23,887,482 for the fiscal year ended June 30, 2020. Approximately 46% of the total revenue for the governmental activities was derived from property taxes and approximately 40% of the total revenue was from program revenues. Total expenses for governmental activities were $19,994,411 and net transfers in were $1,040,253 resulting in a $4,933,324 increase in net position. General government activities accounted for approximately 23% of the total governmental activities expense. Public safety, highways and streets, culture and recreation, and economic development expenses account for approximately 76% of the total, and interest on long-term debt was less than 1% of total governmental activities expenses. Business-Type Activities. Revenues of business-type activities totaled $13,231,491 for the current fiscal year. These activities generated $12,538,433 in program revenues, and $693,058 in interest earnings and miscellaneous revenues. The total expenses for business-type activities were $8,447,093 and net transfers out were $1,040,253 resulting in a $3,744,145 increase in net position. Business-type activities for the City of Woodburn consist of operations for water and sewer services. ---PAGE BREAK--- - 8 - FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS As noted previously, the City 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 $21,267,161 of fund balance of the governmental funds, a decrease of $1,981,978 from the prior year. The City’s governmental funds include the General Fund, Street Fund, Urban Renewal Fund 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 $6,835,922 was reported by the General Fund. The fund balance decreased by $1,120,445 from the previous year due to increases in non-departmental expenditures offset by increases in transfers in and decreases in transfers out. The City reports two other major governmental funds. The Street Fund had a fund balance of $4,242,863, a decrease of $346,168 from the previous year, due mainly to an increase in transfers out. The Urban Renewal Fund had a balance of $1,354,312, a decrease of $1,217,695, due to debt service and capital outlay in excess of revenue. Proprietary Funds. At the end of the current fiscal year, net position of the enterprise funds equaled $60,481,399, an increase of $3,744,145 from the prior year, and net position of the internal service funds equaled $752,751, an increase of $147,669 from the prior year. The City reports two major proprietary funds, the Water Operations Fund and the Sewer Operations Fund. The Water Operations Fund had a net position of $9,824,690, an increase of $1,466,263 from previous year, mainly due to an increase in charges for services. The Sewer Operations Fund had a net position of $50,656,709, an increase of $2,277,882 from previous year, due to stable charges for services and controlled operating expenses. GENERAL FUND BUDGETARY HIGHLIGHTS Actual revenues (budgetary basis), were under budgeted amounts by less than General Fund expenditures ended $4,569,451 below budgeted amounts primarily due to management efforts to contain costs throughout the fiscal year. There was one supplemental budget that affected balances in the General Fund during the year, which resulted in an increase in transfers out and a decrease in contingency of $460,000. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City’s investment in capital assets for its governmental and business-type activities equaled $70,551,381 and $53,876,881 respectively, at the end of the current fiscal year, net of accumulated depreciation. This investment includes land, construction in process, buildings, equipment, and infrastructure. Additional information about the City’s capital assets is presented on pages 32-33 in the notes to the financial statements. 2020 2019 2020 2019 2020 2019 Land 23,056,538 $ 23,055,692 $ 1,783,816 $ 1,783,816 $ 24,840,354 $ 24,839,508 $ Construction in progress 11,715,865 6,529,430 4,879,135 4,175,633 16,595,000 10,705,063 Buildings 17,255,382 17,255,382 62,748,380 62,748,380 80,003,762 80,003,762 Equipment 7,936,642 7,403,150 3,028,659 3,028,659 10,965,301 10,431,809 Infrastructure 44,632,537 44,562,023 32,362,730 31,746,151 76,995,267 76,308,174 Accumulated depreciation (34,045,583) (32,593,363) (50,925,839) (48,541,785) (84,971,422) (81,135,148) Net capital assets 70,551,381 $ 66,212,314 $ 53,876,881 $ 54,940,854 $ 124,428,262 $ 121,153,168 $ Governmental Activities Business-type Activities Total ---PAGE BREAK--- - 9 - Long-term Debt. At the end of the current fiscal year, long-term debt outstanding for the governmental activities totaled $6,920,670, compared to $8,157,849 in the prior year. The decrease is due to scheduled debt repayments. For the business-type activities, total long-term debt equaled $18,853,610 compared to $23,869,194 in the prior year. The decrease is due to scheduled debt repayments. Additional information about the City’s long-term debt outstanding is presented on pages 34-36 in the notes to the financial statements. Governmental Activities Business-type Activities Total 2020 2019 2020 2019 2020 2019 General obligation bonds 2,301,000 $ 2,812,000 $ - $ - $ 2,301,000 $ 2,812,000 $ Direct borrowings 3,808,000 4,600,000 - - 3,808,000 4,600,000 Direct placement revenue b - - 17,266,543 22,158,072 17,266,543 22,158,072 Bond premium - - 1,519,698 1,657,852 1,519,698 1,657,852 Accrued compensated abse 811,670 745,849 67,369 53,270 879,039 799,119 6,920,670 $ 8,157,849 $ 18,853,610 $ 23,869,194 $ 25,774,280 $ 32,027,043 $ ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES Oregon, much like the national economic environment, has steadily improved over the last few years. The low unemployment rates have positively impacted wages and Oregon’s median household incomes have risen. The strong economy, coupled with steady population growth and Woodburn’s 2015 approval of the Urban Growth Boundary, will result in an increase in local development and property tax revenue projections. 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, 2020 Governmental Business-type Activities Activities Totals ASSETS Cash and investments 22,189,818 $ 27,305,966 $ 49,495,784 $ Accounts receivable 1,521,252 1,032,834 2,554,086 Property taxes receivable 437,379 - 437,379 Assessment liens receivable 20,460 - 20,460 Loans receivable 497,714 - 497,714 Prepaid expenses 26,690 6,859 33,549 Internal balances 131,181 (131,181) - Non-depreciable capital assets 34,772,403 6,662,951 41,435,354 Other capital assets, net of depreciation 35,778,978 47,213,930 82,992,908 OPEB asset 122,918 34,567 157,485 Total Assets 95,498,793 82,125,926 177,624,719 DEFERRED OUTFLOWS Deferred outflows related to PERS 7,321,964 1,639,271 8,961,235 Deferred outflows related to OPEB 75,318 22,304 97,622 Deferred charges on refunding 5,609 903 6,512 Total Deferred Outflows 7,402,891 1,662,478 9,065,369 LIABILITIES Accounts payable 693,658 376,665 1,070,323 Accrued payroll liabilities 532,239 - 532,239 Deposits payable - 138,165 138,165 Interest payable 11,814 271,568 283,382 Noncurrent liabilities: Due within one year: Long-term debt 1,348,000 5,098,001 6,446,001 Bond premium - 138,154 138,154 Accrued compensated absences 324,668 26,948 351,616 Due in more than one year: Long-term debt 4,761,000 12,168,541 16,929,541 Bond premium - 1,381,543 1,381,543 Accrued compensated absences 487,002 40,421 527,423 OPEB liability 502,436 151,154 653,590 Net pension liability 12,765,157 3,017,248 15,782,405 Total Liabilities 21,425,974 22,808,408 44,234,382 DEFERRED INFLOWS Deferred inflows related to PERS 1,545,547 464,543 2,010,090 Deferred inflows related to OPEB 116,225 34,054 150,279 Total Deferred Inflows 1,661,772 498,597 2,160,369 NET POSITION Net investment in capital assets 64,447,990 46,922,723 111,370,713 Restricted for: Debt service 32,604 - 32,604 Culture and recreation 170,172 - 170,172 Community development 2,292,920 - 2,292,920 Construction 9,743,024 17,249,531 26,992,555 Unrestricted 3,127,228 (3,690,855) (563,627) Total Net Position 79,813,938 $ 60,481,399 $ 140,295,337 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2020 Fees, Fines Operating Capital and Charges Grants and Grants and Expenses for Services Contributions Contributions FUNCTIONS/PROGRAMS Governmental activities: General government 4,673,660 $ 243,805 $ 720,761 $ 73,674 $ Public safety 6,982,033 243,369 3,190 275 Highways and streets 2,113,284 2,275 1,707,151 1,527,699 Culture and recreation 4,139,885 573,205 875,410 904,683 Economic development 2,025,642 1,579,828 1,040,152 - Interest on long-term debt 59,907 - - - Total Governmental activities 19,994,411 2,642,482 4,346,664 2,506,331 Business-type activities: Water 2,679,610 3,990,442 - 296,217 Sewer 5,767,483 8,122,190 - 129,584 Total Business-type activities 8,447,093 12,112,632 - 425,801 Total Activities 28,441,504 $ 14,755,114 $ 4,346,664 $ 2,932,132 $ General Revenues: Property taxes Franchise taxes Other taxes Intergovernmental Gain on disposition of assets Unrestricted investment earnings Miscellaneous Total General Revenues Transfers Change in Net Position Net Position - beginning of year 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 (3,635,420) $ - $ (3,635,420) $ (6,735,199) - (6,735,199) 1,123,841 - 1,123,841 (1,786,587) - (1,786,587) 594,338 - 594,338 (59,907) - (59,907) (10,498,934) - (10,498,934) - 1,607,049 1,607,049 - 2,484,291 2,484,291 - 4,091,340 4,091,340 (10,498,934) 4,091,340 (6,407,594) 10,908,076 - 10,908,076 1,528,351 - 1,528,351 491,023 - 491,023 903,481 - 903,481 11,060 - 11,060 517,897 622,056 1,139,953 32,117 71,002 103,119 14,392,005 693,058 15,085,063 1,040,253 (1,040,253) - 4,933,324 3,744,145 8,677,469 74,880,614 56,737,254 131,617,868 79,813,938 $ 60,481,399 $ 140,295,337 $ Net (Expenses) Revenues and Changes in Net Position ---PAGE BREAK--- CITY OF WOODBURN, OREGON BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2020 General Street Urban Renewal ASSETS Cash and investments 6,617,203 $ 4,181,442 $ 1,614,325 $ Accounts receivable 728,941 122,613 - Property taxes receivable 383,469 - 30,516 Assessment liens receivable - - - Loans receivable - - - Prepaid expenses 23,390 - - Due from other funds 746,961 - - Total Assets 8,499,964 $ 4,304,055 $ 1,644,841 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Accounts payable 144,934 $ 24,868 $ 253,224 $ Accrued payroll and payroll liabilities 532,239 - - Due to other funds 333,903 36,324 7,841 Total Liabilities 1,011,076 61,192 261,065 Deferred Inflows Unavailable revenue 652,966 - 29,464 Fund Balance Non-spendable 23,390 - - Restricted for: Debt service - - - Construction - 4,242,863 - Culture and recreation - - - Community development - - 1,354,312 Committed to: Public safety - - - Capital outlay - - - Planning and building - - - Unassigned 6,812,532 - - Total Fund Balance 6,835,922 4,242,863 1,354,312 Total Liabilities, Deferred Inflows and Fund Balance 8,499,964 $ 4,304,055 $ 1,644,841 $ Special Revenue ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 12 - Other Governmental Funds Total 8,648,708 $ 21,061,678 $ 659,974 1,511,528 23,394 437,379 20,460 20,460 497,714 497,714 3,300 26,690 - 746,961 9,853,550 $ 24,302,410 $ 261,159 $ 684,185 $ - 532,239 217,565 595,633 478,724 1,812,057 540,762 1,223,192 3,300 26,690 32,604 32,604 6,282,301 10,525,164 170,172 170,172 411,430 1,765,742 15,132 15,132 749,139 749,139 1,169,986 1,169,986 - 6,812,532 8,834,064 21,267,161 9,853,550 $ 24,302,410 $ ---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, 2020 Fund Balances 21,267,161 $ The Statement of Net Position reports receivables at their net realizable value. However, receivables not available to pay for current period expenditures are reported as unavailable in governmental funds. 1,223,192 PERS net pension liability, OPEB asset and liability, deferred outflows of resources arising from contributions paid, changes in assumptions, and differences between expected and actual experience, and deferred inflows arising from changes in proportionate share of earnings in the current year are not financial resources in governmental funds, but are reported in the Statement of Net Position. Net pension liability - PERS (12,237,824) OPEB liability (480,783) OPEB asset 117,880 Deferred outflows - PERS 7,022,693 Deferred outflows - OPEB 72,154 Deferred inflows - PERS (1,484,098) Deferred inflows - OPEB (111,664) Deferred outflows arising from refundings are not financial resources in governmental funds, but are reported in the Statement of Net Position. 5,609 Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Position at their net depreciable value. Cost 104,596,964 Accumulated depreciation (34,045,583) 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. Accrued compensated absences (763,700) Accrued interest (11,814) Long-term debt (6,109,000) 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 position are reported along with governmental activities in the Statement of Net Position. 752,751 Net Position of Governmental Activities 79,813,938 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 General Street Urban Renewal REVENUES Taxes and assessments 9,932,526 $ 101,204 $ 775,881 $ Licenses and permits 1,999,971 353,887 - Charges for services 903,988 - - Intergovernmental 1,020,875 1,707,151 1,040,152 Fines and forfeitures 352,400 - - Miscellaneous 891,903 123,912 42,547 Total Revenues 15,101,663 2,286,154 1,858,580 EXPENDITURES Current General government 4,397,582 - - Economic development 849,111 - 369,189 Public safety 7,574,867 - - Highways and streets - 1,654,523 - Culture and recreation 3,103,380 - - Debt Service Principal 532,000 - 260,000 Interest 42,391 - 74,975 Capital outlay 2,901 - 2,359,821 Total Expenditures 16,502,232 1,654,523 3,063,985 REVENUES OVER (UNDER) EXPENDITURES (1,400,569) 631,631 (1,205,405) OTHER FINANCING SOURCES (USES) Transfers in 374,009 90,000 - Transfers out (116,000) (1,067,799) (12,290) Proceeds from sale of assets 22,115 - - Total Other Financing Sources (Uses) 280,124 (977,799) (12,290) NET CHANGE IN FUND BALANCE (1,120,445) (346,168) (1,217,695) FUND BALANCE, beginning of year 7,956,367 4,589,031 2,572,007 FUND BALANCE, end of year 6,835,922 $ 4,242,863 $ 1,354,312 $ Special Revenue ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 14 - Other Governmental Funds Total 575,048 $ 11,384,659 $ 1,542,273 3,896,131 26,798 930,786 2,652,079 6,420,257 - 352,400 248,405 1,306,767 5,044,603 24,291,000 - 4,397,582 857,118 2,075,418 - 7,574,867 - 1,654,523 925,027 4,028,407 511,000 1,303,000 57,515 174,881 3,177,736 5,540,458 5,528,396 26,749,136 (483,793) (2,458,136) 1,727,049 2,191,058 (540,990) (1,737,079) 64 22,179 1,186,123 476,158 702,330 (1,981,978) 8,131,734 23,249,139 8,834,064 $ 21,267,161 $ ---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, 2020 Net Change in Fund Balances - Total Governmental Funds (1,981,978) $ 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. Property tax receivables 14,440 Increases in other assets (180,963) 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 (60,946) Accrued interest payable (990) Deferred charge on refunding (1,402) 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 capitalized 5,791,287 Depreciation (1,452,220) 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 1,303,000 Current year PERS pension and OPEB expenses related to changes in liabilities are reported as an expense in the Statement of Activities but are not recorded as an expenditure in the governmental funds. 1,355,426 Net income of internal service funds 147,670 Change in Net Position of Governmental Activities 4,933,324 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 16 - CITY OF WOODBURN, OREGON STATEMENT OF NET POSITION - PROPRIETARY FUNDS JUNE 30, 2020 Governmental Activities Water Operations Sewer Operations Total Internal Service ASSETS Current Assets Cash and investments 6,107,734 $ 21,198,232 $ 27,305,966 $ 1,128,140 $ Accounts receivable 276,815 756,019 1,032,834 9,724 Prepaid leases - 6,859 6,859 - Total Current Assets 6,384,549 21,961,110 28,345,659 1,137,864 Noncurrent Assets Nondepreciable capital assets 1,727,950 4,935,001 6,662,951 - Other capital assets, net of depreciation 9,080,216 38,133,714 47,213,930 - OPEB asset 14,648 19,919 34,567 5,038 Total Noncurrent Assets 10,822,814 43,088,634 53,911,448 5,038 Total Assets 17,207,363 65,049,744 82,257,107 1,142,902 DEFERRED OUTFLOWS Deferred outflows related to PERS 588,543 1,050,728 1,639,271 299,271 Deferred outflows related to OPEB 9,728 12,576 22,304 3,164 Deferred charge on refunding 903 - 903 - Total Deferred Outflows 599,174 1,063,304 1,662,478 302,435 LIABILITIES Current Liabilities Accounts payable 110,520 266,145 376,665 9,472 Due to other funds 59,685 71,496 131,181 20,148 Deposits payable 138,165 - 138,165 - Accrued interest payable 14,424 257,144 271,568 - Current portion of long-term liabilities Long-term debt 1,402,000 3,696,001 5,098,001 - Bond premiums - 138,154 138,154 - Accrued compensated absences 16,819 10,128 26,948 19,188 Total Current Liabilities 1,741,613 4,439,068 6,180,682 48,808 Noncurrent Liabilities Accrued compensated absences 25,229 15,193 40,421 28,782 Long-term debt 4,790,000 7,378,541 12,168,541 - Bond premiums - 1,381,543 1,381,543 - Net pension liability 1,141,794 1,875,454 3,017,248 527,333 OPEB liability 67,269 83,885 151,154 21,653 Total Noncurrent Liabilities 6,024,292 10,734,616 16,758,907 577,768 Total Liabilities 7,765,905 15,173,684 22,939,589 626,576 DEFERRED INFLOWS Deferred inflows related to PERS 201,774 262,769 464,543 61,449 Deferred inflows related to OPEB 14,168 19,886 34,054 4,561 215,942 282,655 498,597 66,010 NET POSITION: Net investment in capital assets 4,617,069 42,305,654 46,922,723 - Restricted for: Construction 3,629,440 13,620,091 17,249,531 - Unrestricted 1,578,181 (5,269,036) (3,690,855) 752,751 Total Net Position 9,824,690 $ 50,656,709 $ 60,481,399 $ 752,751 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 17 - CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2020 Governmental Activities Water Operations Sewer Operations Total Internal Service OPERATING REVENUES Charges for services 3,990,442 $ 8,122,190 $ 12,112,632 $ 1,888,447 $ Miscellaneous 61,379 9,623 71,002 2,288 Total Operating Revenues 4,051,821 8,131,813 12,183,634 1,890,735 OPERATING EXPENSES Personal services 1,310,062 1,735,141 3,045,203 460,915 Materials and services 760,029 1,185,381 1,945,410 1,204,282 Depreciation 409,679 1,974,375 2,384,054 - Total Operating Expenses 2,479,770 4,894,897 7,374,667 1,665,197 OPERATING INCOME (LOSS) 1,572,051 3,236,916 4,808,967 225,538 NONOPERATING REVENUES (EXPENSES) Investment revenue 137,010 485,046 622,056 14,600 Amortization of bond premiums - 138,154 138,154 - Interest expense (199,840) (1,010,740) (1,210,580) - Total Nonoperating Revenues (Expenses) (62,830) (387,540) (450,370) 14,600 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 1,509,221 2,849,376 4,358,597 240,138 Capital contributions 296,217 129,584 425,801 - Transfers out (339,175) (701,078) (1,040,253) (92,469) CHANGE IN NET POSITION 1,466,263 2,277,882 3,744,145 147,669 NET POSITION, beginning of year 8,358,427 48,378,827 56,737,254 605,082 NET POSITION, end of year 9,824,690 $ 50,656,709 $ 60,481,399 $ 752,751 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 18 - CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2020 Governmental Activities Water Operations Sewer Operations Totals Internal Service CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 4,046,056 $ 8,011,458 $ 12,057,514 $ 1,894,734 $ Paid to suppliers (699,271) (1,081,710) (1,780,981) (1,601,618) Paid to employees (1,463,445) (1,946,376) (3,409,821) (116,701) Net Cash Provided by Operating Activities 1,883,340 4,983,372 6,866,712 176,415 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Received from (paid to) other funds 59,685 71,496 131,181 20,148 Transfers out (339,175) (701,078) (1,040,253) (29,530) Net Cash Used in Non-Capital Financing Activities (279,490) (629,582) (909,072) (9,382) CASH FLOWS FROM CAPITAL AND Acquisition of capital assets (178,082) (1,141,999) (1,320,081) (62,939) Principal paid on loans and bonds payable (1,422,000) (3,469,529) (4,891,529) - Capital contributions 295,374 127,720 423,094 - Interest paid (203,151) (999,337) (1,202,488) - Net Cash Used in Capital and Related Financing Activities (1,507,859) (5,483,145) (6,991,004) (62,939) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 137,010 485,046 622,056 14,601 Increase (Decrease) in Cash and Investments 233,001 (644,309) (411,308) 118,695 CASH AND INVESTMENTS, Beginning of year 5,874,733 21,842,541 27,717,274 1,009,445 CASH AND INVESTMENTS, End of year 6,107,734 $ 21,198,232 $ 27,305,966 $ 1,128,140 $ RELATED FINANCING ACTIVITIES ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 19 - CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS (Continued) YEAR ENDED JUNE 30, 2020 Governmental Activities Water Operations Sewer Operations Totals Internal Service RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) 1,572,051 $ 3,236,916 $ 4,808,967 $ 225,537 $ cash provided by operating activities: Depreciation 409,679 1,974,375 2,384,054 - Change in assets and liabilities: Accounts receivable (8,805) (120,357) (129,162) 4,000 Deferred outflows (355,455) (466,055) (821,510) (131,784) OPEB asset (5,978) (7,834) (13,812) - Accounts payable and accrued liabilities 60,758 103,674 164,432 2,773 Customer deposits 3,040 - 3,040 - Compensated absences payable 10,419 3,680 14,099 4,875 Net pension liability (asset) 257,001 336,772 593,773 95,228 OPEB liability 3,179 4,165 7,344 1,178 Deferred inflows (62,549) (81,964) (144,513) (23,177) Net Cash Provided by Operating Activities 1,883,340 $ 4,983,372 $ 6,866,712 $ 176,415 $ Noncash Transactions Transfer of capital assets - $ - $ - $ (62,939) $ Adjustments to reconcile the change in operating ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- - 20 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2020 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, 2020. 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. 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. ---PAGE BREAK--- - 21 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued) 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, capital projects, debt service, internal 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 positions 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. 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. ---PAGE BREAK--- - 22 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Balance (Continued) 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 is 20% of annual operating revenue, as shown as a minimum fund balance in the General Fund, with the long-term goal of increasing the reserve to 25% as year-end savings occur. The City Council is the highest level of 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. 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. ---PAGE BREAK--- - 23 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Fund Financial Statements (Continued) 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 unavailable 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. 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 Urban Renewal Fund The City reports the following major proprietary funds: Water Operations Sewer Operations 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, 2020. Actual results may differ from such estimates. ---PAGE BREAK--- - 24 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and Investments The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and certificates of deposit. 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 Unavailable 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 thirty days subsequent to year end, are considered measurable and available and are recognized as revenues. All other property taxes are considered unavailable 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 considered unavailable and, accordingly, have not been recorded as revenue. Revolving loans in the government fund types are recognized as receivables at the time housing rehabilitation loans are made. All loans receivable are considered unavailable and, accordingly, have not been recorded as revenue. Inventory and Prepaid Items Inventory in business-type funds is state at cost (first-in, first-out basis) and is charged to expense as used. Prepaid items in the governmental funds are stated at cost and charged to expenditures in the period consumed. 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. ---PAGE BREAK--- - 25 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Assets (Continued) 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 10 - 40 years Water and Sewer Systems 15 - 50 years Infrastructure 50 years Equipment 5 - 15 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. 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. Bond premiums will be amortized over the life of the related debt. Payment of compensated absences will be made primarily from the General Fund, Street Fund, Water Fund and Sewer Fund. ---PAGE BREAK--- - 26 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expenditure) until then. The City reports deferred outflows of resources related to pensions and other post-employment benefits for contributions made after the June 30, 2019 measurement date, differences between expected and actual experience, and changes in proportionate share, as well as deferred charges related to refunded bonds. 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, represents an acquisition 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 three items that qualify for reporting in this category. The City reports deferred inflows related to pensions and other post-employment benefits for changes in projected earnings versus actual earnings and contribution versus proportionate share of contributions. The third instance of deferred inflows arises only under a modified accrual basis of accounting. Accordingly, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and loans receivable. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Net Pension Liability The City reports its proportionate share of the Net Pension Liability of the Oregon Public Employees Retirement System (OPERS). A negative Net Pension Liability is reported as a Net Pension Asset. For purposes of measuring the net pension liability or asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about fiduciary net position of OPERS and additions to/deductions from OPERS’s fiduciary net position have been determined on the same basis as they are reported by OPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. Post-Employment Benefits Other Than Pensions (OPEB) The City reports two components of post-employment benefits other than pensions (OPEB) - Oregon Public Employees Retirement System Retiree Health Insurance Account (OPERS RHIA) and a single-employer defined benefit post-employment health plan administered by Citycounty Insurance Services (CIS). The City reports its proportionate share of the Oregon Public Employees Retirement System Retiree Health Insurance Account (OPERS RHIA). A negative OPEB liability is reported as an OPEB Asset. For purposes of measuring the City’s OPEB liability or asset, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of OPERS RHIA and additions to/deductions from OPERS RHIA’s fiduciary net position have been determined on the same basis as they are reported by OPERS RHIA. For this purpose, the benefit payments are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. ---PAGE BREAK--- - 27 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Post-Employment Benefits Other Than Pensions (OPEB) (Continued) The City reports an OPEB liability or asset, deferred outflows of resources and deferred inflows of resources related to the implicit subsidy arising from the City’s single-employer defined benefit post-employment health plan administered by CIS. For the purpose of measuring the City’s OPEB liability or asset, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information has been determined based on an actuarial valuation provided by CIS. Benefit payments are recognized when due and payable in accordance with benefit terms. Accrued Vacation Pay Accumulated vested vacation pay is accrued in the proprietary 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 is not expected to 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 program/function level for all 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. ORGANIZATION AND OPERATION The City’s financial operations are accounted for in the following funds: 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 public safety, highways and streets, economic development, culture and recreation, and general government. In accordance with GASB Statement No. 54, the PERS Reserve fund, which is budgeted separately and accounts for the City’s participation in the State’s employer incentive program, is combined with the General fund for financial reporting purposes. 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. ---PAGE BREAK--- - 28 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 ORGANIZATION AND OPERATION (Continued) Governmental Fund Types (Continued) Special Revenue Funds (Continued) Urban Renewal Fund – This fund accounts for transactions related to urban renewal, including debt service on the URA loan. Property taxes are the primary source of revenue. Transit Fund – This fund accounts for amounts held to be used for transportation services. Building Inspection Fund - This fund accounts for building permit revenue and associated operations. Asset Forfeiture Fund - This fund accounts for the seizure of private properties that are the product of illegal activity, and for the expenditure of the proceeds by the City for illegal drug activity investigations and subsequent arrests. Housing Rehabilitation Fund - This fund accounts for the City’s CDBG grant program and provides low income housing and small business loans. Lavelle Black Trust Fund – This fund accounts for the donations received to continue the police dog program. Capital Projects Funds Special Assessment Fund - This fund accounts for the repayment of local improvement district (LID) assessments. The money is used for construction of LID projects. Street & Storm Capital Construction 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 SDCs. General Capital Construction Fund - This fund is used to account for transfers from general services funds used for general services construction projects. Street SDC Fund - This fund accounts for the collection and spending of street SDCs. Storm SDC Fund - This fund accounts for the collection and spending of storm SDCs. Equipment Replacement Fund - This fund accounts for transfers from other funds set aside for future equipment purchases. Debt Service Fund GO Debt Service Fund - This fund accounts for debt service on the City’s 2005 GO bond (refunded in 2017). Property taxes are the major source of revenue. ---PAGE BREAK--- - 29 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 ORGANIZATION AND OPERATION (Continued) Proprietary Fund Types Enterprise Funds The City has two enterprise funds. Three individually budgeted funds are related to water, and report as Water Operations, and three individually budgeted funds are related to sewer, and report as Sewer Operations. The specific funds and their purposes are as follows. Water Operations - This operating fund includes the Water fund, the Water SDC fund and the Water Capital Construction fund. Customer usage fees and system development charges (SDCs) are the primary sources of revenue. The funds account for water general operations, water system capital improvement projects and the retirement of associated debt. Sewer Operations - This operating fund includes the Sewer fund, the Sewer SDC fund and the Sewer Capital Construction Fund. Customer usage fees and system development charges (SDCs) are the primary sources of revenue. The funds account for the operation of the City’s sewer system, sewer system capital improvement projects, and the retirement of related debt. Internal Service Funds The City has two 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 Technology 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. ---PAGE BREAK--- - 30 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 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 Cash on hand $ 3,760 $ 3,760 Deposits with financial institutions 446,995 446,995 Certificates of deposit 7,233,703 7,233,703 Investments Local Government Investment Pool 41,811,326 42,179,266 $ 49,495,784 $ 49,863,724 Cash is reported in the financial statements as follows: Governmental funds $ 21,061,678 Internal Service funds (included in governmental activities) 1,128,140 Enterprise funds 27,305,966 $ 49,495,784 Carrying Fair Value Value Deposits The book balance of the City’s bank deposits was $466,995 and the bank balance was $651,216 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). The carrying value of the City’s position in the pool is the same as the value of the pool shares; fair value was 100.88% of the value of the pool shares as of June 30, 2020. 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--- - 31 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 CASH AND INVESTMENTS (Continued) Interest Rate Risk In accordance with its investment policy, the City manages its exposure to declines in fair value of its investments by limiting the weighted average maturity of its investments. 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) and the National Credit Union Administration (NCUA) provide insurance for the City’s deposits up to $250,000 for the aggregate of demand deposits and the aggregate of all time deposits and savings accounts at each financial institution and credit union. Deposits in excess of FDIC and NCUA 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, 2020, $401,216 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 Commission. The LGIP is an open-ended no-load diversified portfolio offered to any agency, political subdivision, or public corporation of the state that by law is made the custodian of, or has control of any fund. The LGIP is commingled with the State’s short-term funds. In seeking to best serve local governments of Oregon, the Oregon Legislature established the Oregon Short Term Fund Board, which has established diversification percentages and specifies the types and maturities of the investments. The purpose of the Board is to advise the Oregon State Treasury in the management and investment of the LGIP. 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. The LGIP is not rated for credit quality. ---PAGE BREAK--- - 32 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 CAPITAL ASSETS The summary of capital assets for the business-type activities for the year ended June 30, 2020 is as follows: Balances Balances July 1, June 30, 2019 Additions Retirements 2020 Nondepreciable assets Land 1,783,816 $ - $ - $ 1,783,816 $ Construction in progress 4,175,633 703,502 - 4,879,135 Subtotal, nondepreciable assets 5,959,449 703,502 - 6,662,951 Depreciable assets Buildings 62,748,380 - - 62,748,380 Water and sewer systems 31,746,151 616,579 - 32,362,730 Equipment 3,028,659 - - 3,028,659 Subtotal, depreciable assets 97,523,190 616,579 - 98,139,769 Accumulated depreciation Buildings and improvements (33,164,506) (1,717,705) - (34,882,211) Water and sewer systems (13,427,986) (532,370) - (13,960,356) Equipment (1,949,293) (133,979) - (2,083,272) Total accumulated depreciation (48,541,785) (2,384,054) - (50,925,839) Total depreciable assets, net 48,981,405 (1,767,475) - 47,213,930 Net capital assets 54,940,854 $ (1,063,973) $ - $ 53,876,881 $ Depreciation expense was allocated as follows: Water operations 409,679 $ Sewer operations 1,974,375 2,384,054 $ ---PAGE BREAK--- - 33 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 CAPITAL ASSETS (Continued) The changes in the capital assets for governmental activities for the year ended June 30, 2020 are as follows: Balances Balances July 1, June 30, 2019 Additions 2020 Nondepreciable assets Land 23,055,692 $ 846 $ - $ 23,056,538 $ Construction in progress 6,529,430 5,186,435 - 11,715,865 Subtotal, nondepreciable assets 29,585,122 5,187,281 - 34,772,403 Depreciable assets Buildings 17,255,382 - - 17,255,382 Equipment 7,403,150 533,492 - 7,936,642 Infrastructure 44,562,023 70,514 - 44,632,537 Subtotal, depreciable assets 69,220,555 604,006 - 69,824,561 Accumulated depreciation Buildings (7,751,855) (403,777) - (8,155,632) Equipment (6,227,864) (330,491) (6,558,355) Infrastructure (18,613,644) (717,952) - (19,331,596) Total accumulated depreciation (32,593,363) (1,452,220) - (34,045,583) Total depreciable assets, net 36,627,192 (848,214) - 35,778,978 Net capital assets 66,212,314 $ 4,339,067 $ - $ 70,551,381 $ Retirements/ Transfers Depreciation expense was allocated as follows: General government 271,770 $ Public safety 233,847 Highways and streets 827,201 Culture and recreation 119,402 1,452,220 $ ---PAGE BREAK--- - 34 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 LONG-TERM DEBT Long-term debt transactions for the year were as follows: Outstanding Matured/ Outstanding Due July 1, Redeemed June 30, Within 2019 Issued During Year 2020 One Year Governmental Activities: 2,812,000 $ - $ (511,000) $ 2,301,000 $ 539,000 $ Direct borrowings 4,600,000 - (792,000) 3,808,000 809,000 7,412,000 - (1,303,000) 6,109,000 1,348,000 Accrued compensated absences 745,849 726,469 (660,648) 811,670 324,668 8,157,849 $ 726,469 $ (1,963,648) $ 6,920,670 $ 1,672,668 $ Business-type Activities: Direct placement revenue bonds 7,614,000 - (1,422,000) 6,192,000 1,402,000 Revenue bonds 14,544,072 - (3,469,529) 11,074,543 3,696,001 22,158,072 - (4,891,529) 17,266,543 5,098,001 2011 Sewer Revenue Bond premium 1,657,852 - (138,154) 1,519,698 - Accrued compensated absences 53,270 80,535 (66,436) 67,369 26,948 23,869,194 $ 80,535 $ (5,096,119) $ 18,853,610 $ 5,124,949 $ Direct placement general obligation bonds Direct Placement General Obligation Bonds Payable - Governmental Activities General Obligation Bond Series 2017 (2005 refunding): In November 2017, the City issued bonds directly to a bank in the amount of $3,749,000 at 2.08% interest, to refund bonds issued in 2005. Bond interest is payable semiannually, while principal is due annually through June 2024. The bonds are unsecured, and the City has levied an ad valorem tax to service payments due. Amounts due are not subject to acceleration in the event of default. The balance at June 30, 2020 is $2,301,000. Annual debt service requirements to maturity for bonds payable are as follows: Principal Interest Total 2021 539,000 $ 48,526 $ 587,526 $ 2022 568,000 37,315 605,315 2023 597,000 25,501 622,501 2024 597,000 13,082 610,082 2,301,000 $ 124,424 $ 2,425,424 $ Fiscal Year June 30, Ending ---PAGE BREAK--- - 35 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 LONG-TERM DEBT (Continued) Loans from Direct Borrowings - Governmental Activities 2019 Full Faith and Credit Financing Agreement (City Hall): In May 2019, the City entered into a direct financing agreement in the amount of $1,700,000 at 2.35% interest, to fund renovations at Woodburn City Hall. Interest is payable semiannually, while principal is due annually through June 2023. The loan is unsecured and payable from any legally available funds of the City. Amounts due are not subject to acceleration in the event of default. The balance at June 30, 2020 is $1,168,000. 2019 Urban Renewal Note Payable: In June 2019, the Woodburn Urban Renewal Agency (a component unit of the City) entered into a note payable agreement in the amount of $2,900,000 at 2.77% interest, to fund urban renewal projects. Interest is payable semiannually, while principal is due annually through June 2029. The loan is secured by the tax increment revenues, and amounts due are not subject to acceleration in the event of default. The balance at June 30, 2020 is $2,640,000. Annual debt service requirements for direct borrowings are as follows: Principal Interest Total 2021 809,000 $ 100,576 $ 909,576 $ 2022 576,000 80,465 656,465 2023 591,000 65,798 656,798 2024 285,000 50,746 335,746 2025 293,000 42,852 335,852 2026-2029 1,254,000 88,003 1,342,003 3,808,000 $ 428,440 $ 4,236,440 $ Fiscal Year Ending June 30, Direct Placement Revenue Bonds Payable - Business-type Activities 2018 Water Revenue Refunding Bond - Direct Placement: In October 2020, the City issued bonds totaling $8,630,000 at 2.94% interest to refund outstanding loans payable. Bond interest is payable semiannually, while principal is due annually through December 2024. The bonds are secured by the net revenues of the water system. The balance at June 30, 2020 is $6,192,000. ---PAGE BREAK--- - 36 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 LONG-TERM DEBT (Continued) Direct Placement Revenue Bonds Payable - Business-type Activities (Continued) Annual debt service requirements to maturity for bonds payable are as follows: Principal Interest Total 2021 1,402,000 $ 161,435 $ 1,563,435 2022 1,104,000 124,597 1,228,597 2023 1,442,000 87,171 1,529,171 2024 1,332,000 46,393 1,378,393 2025-2029 912,000 13,406 925,406 6,192,000 $ 433,002 $ 6,625,002 $ Fiscal Year Ending June 30, Revenue Bonds Payable - Business-type Activities 2011 Wastewater Revenue and Refunding Bonds (Series A and In November 2011, the City issued bonds totaling $36,910,000 to refund outstanding loans payable and to finance various improvements in the Wastewater System. The Series 2011A bonds include variable interest between 3.00% and 5.00%, payable semiannually, with principal due annually through April 2031. The Series 2011B bonds include variable interest, compounded semiannually and payable only at maturity, due March 2023. Net revenues of the wastewater system have been pledged as payment for the bonds. In the event of default, the bonds are not subject to acceleration. The balance at June 30, 2020 is $11,074,543, and $1,519,698 of bond premiums are yet to be amortized. At June 30, 2020, there was $11,831,178 in unspent bond proceeds related the construction of the wastewater treatment plant. In July 2020, the City authorized a defeasance of all outstanding 2011 Wastewater Revenue and Refunding Bonds (Series A and Funds totaling $13,478,918, consisting of unspent bond proceeds and other funds, were placed in an irrevocable escrow to be used solely for satisfying future scheduled payments. This transaction qualifies as an in-substance defeasance, and as such, the City will not recognize an obligation for these bonds subsequent to June 30, 2020. PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM Plan Description Substantially all City employees are members in the Oregon Public Employees Retirement System (OPERS); a cost-sharing multiple-employer defined benefit pension plan that acts as a common investment and administrative agent for government units in the State of Oregon. Employees hired before August 29, 2003 belong to the Tier One/Tier Two Retirement Benefit Program (established pursuant to ORS Chapter 238), while employees hired on or after August 29, 2003 belong to the OPSRP Pension Program (established pursuant to ORS Chapter 238A). OPERS produces an independently audited CAFR which can be found at: http://www.oregon.gov/pers/Pages/section/financial_reports/financials.aspx. ---PAGE BREAK--- - 37 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Benefits Provided Tier One/Tier Two Retirement Benefit Pension Benefits. The PERS retirement allowance is payable for life. It may be selected from 13 retirement benefit options. These options include survivorship benefits and lump-sum refunds. The basic benefit is based on years of service and final average salary. A percentage (2.0% for police and fire employees, 1.67% for general service employees) is multiplied by the number of years of service and the final average salary. Benefits may also be calculated under either a formula plus annuity (for members who were contributing before August 21, 1981) or a money match computation if a greater benefit results. A member is considered vested and will be eligible at a minimum retirement age for a service retirement allowance if he or she has had contribution in each of five calendar years or has reached at least 50 years of age before ceasing employment with a participating employer (age 45 for police and fire members). General service employees may retire after reaching age 55. Police and fire members are eligible after reaching age 50. Tier One general service employee benefits are reduced if retirement occurs prior to age 58 with fewer than 30 years of service. Police and fire member benefits are reduced if retirement occurs prior to age 55 with fewer than 25 years of service. Tier Two members are eligible for full benefits at age 60. The ORS Chapter 238 Defined Benefit Pension Plan is closed to new members hired on or after August 29, 2003. Death Benefits. Upon the death of a non-retired member, the beneficiary receives a lump-sum refund of the member’s account balance (accumulated contributions and interest). In addition, the beneficiary will receive a lump-sum payment from employer funds equal to the account balance, provided one or more of the following conditions are met:  the member was employed by a PERS employer at the time of death,  the member died within 120 days after termination of PERS-covered employment,  the member died as a result of injury sustained while employed in a PERS-covered job, or  the member was on an official leave of absence from a PERS-covered job at the time of death. Disability Benefits. A member with 10 or more years of creditable service who becomes disabled from other than duty-connected causes may receive a non-duty disability benefit. A disability resulting from a job-incurred injury or illness qualifies a member for disability benefit regardless of the length of PERS-covered service. Upon qualifying for either a non-duty or duty disability, service time is computed to age 58 (55 for police and fire members) when determining the benefit. Benefit Changes After Retirement. Members may choose to continue participation in a variable equities investment account after retiring and may experience annual benefit fluctuations due to changes in the market value of equity investments. Under ORS 238.360 benefits are adjusted annually through cost-of-living changes. Under current law, the cap on the COLA in fiscal year 2015 and beyond will vary based on 1.25% on the first $60,000 of annual benefit and 0.15% on annual benefits above $60,000. Pension Benefits. The Pension Program (ORS Chapter 238A) provides benefits to members hired on or after August 29, 2003. This portion of OPSRP provides a life pension funded by employer contributions. Benefits are calculated by formula for members who attain normal retirement age. For general service members, 1.5% is multiplied by the number of years of service and the final average salary. ---PAGE BREAK--- - 38 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Benefits Provided (Continued) OPSRP Pension Program Normal retirement age for general service members is age 65, or age 58 with 30 years of retirement credit. For police and fire members, 1.8% is multiplied by the number of years of service and the final average salary. Normal retirement age for police and fire members is age 60 or age 53 with 25 years of retirement credit. To be classified as a police and fire member, the individual must have been employed continuously as a police and fire member for at least five years immediately preceding retirement. A member of the OPSRP Pension Program becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, and if the pension program is terminated, the date on which termination becomes effective. Death Benefits. Upon the death of a non-retired member, the spouse or other person who is constitutionally required to be treated in the same manner as the spouse, receives for life 50 percent of the pension that would otherwise have been paid to the deceased member. Disability Benefits. A member who has accrued 10 or more years of retirement credits before the member becomes disabled or a member who becomes disabled due to job-related injury shall receive a disability benefit of 45 percent of the member’s salary determined as of the last full month of employment before the disability occurred. Benefit Changes After Retirement. Under ORS 238A.210 benefits are adjusted annually through cost-of- living changes. Under current law, the cap on the COLA in fiscal year 2015 and beyond will vary based on 1.25% on the first $60,000 of annual benefit and 0.15% on annual benefits above $60,000. Contributions PERS funding policy provides for employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. Employer contribution rates for the period were based on the December 31, 2018 actuarial valuation as subsequently modified by 2013 legislated changes in benefit provisions. The rates based on a percentage of payroll, first became effective July 1, 2019. The City’s contribution rates for the period were 23.69% for Tier One/Tier Two members, 15.80% for OPSRP General Service members, and 20.43% for OPSRP Police and Fire members. The City’s total contributions exclusive of the 6% “pick-up” was $1,874,810. In addition, the City funded an employer’s side account totaling $2,823,043, for which they received a 25% match of $705,761 from the State’s Employer Incentive Fund. These amounts will reduce future required contributions for the next 20 years. Covered employees are required to contribute 6% of their salary to the Plan, but the employer is allowed to pay any or all of the employees’ contribution in addition to the required employers’ contribution. The City has elected to contribute the 6% “pick-up” or $544,557 of the employees’ contribution. ---PAGE BREAK--- - 39 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Pension Assets, Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2020, the City reported a liability of $15,782,405 for its proportionate share of the OPERS net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2017 rolled forward to June 30, 2019. The City’s proportion of the net pension liability was based on a projection of the City’s long- term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2019, the City’s proportion was 0.0912%, which is an increase of 0.0056% from its proportion measured as of June 30, 2018. For the year ended June 30, 2020, the City recognized pension expense of $1,743,352. At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual $ 870,353 $ - experience Changes of assumptions 2,141,063 - Net difference between projected and actual earnings on investments - 447,415 Changes in proportionate share 547,793 1,416,340 Differences between employer contributions and proportionate share of contributions 123,121 146,335 Contributions subsequent to measurement date 5,278,905 - Total $ 8,961,235 $ 2,010,090 Deferred Outflows of Resources Deferred Inflows of Resources Deferred outflows of resources related to pensions of $1,874,810 resulting from the City’s contributions subsequent to the measurement date will be recognized as either a reduction of the net pension liability or an increase in the net pension asset in the year ending June 30, 2021. $3,404,096 related to the balance of the side account at June 30, 2020 will be amortized over the next 20 years. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as an addition to (reduction from) as follows: Fiscal Year Ending June 30, 2021 $ 1,064,738 2022 (161,163) 2023 288,486 2024 432,086 2025 48,092 Total $ 1,672,239 ---PAGE BREAK--- - 40 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Actuarial Methods and Assumptions The total pension liability in the December 31, 2017 actuarial valuation was determined using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Amortization Method Amortized as a level percentage of payroll as layered amortization bases over a closed period; Tier One/Tier Two UAL is amortized over 20 years and OPSRP pension UAL is amortized over 16 years Asset Valuation Method Market value of assets Actuarial Assumptions: Inflation Rate 2.50% Investment Rate of Return 7.20% Projected Salary Increases 3.50% overall payroll growth; salaries for individuals are assumed to grow at 3.50% plus assumed rates of merit/longevity increases based on service Mortality Healthy retirees and beneficiaries: RP-2014 Healthy annuitant, sex-distinct, generational with unisex, Social Security Data Scale, with collar adjustments and set-backs as described in the valuation. Active members: RP-2014 Employees, sex-distinct, generational with unisex, Social Security Data Scale, with collar adjustments and set-backs as described in the valuation. Disabled retirees: RP-2014 Disabled retirees, sex-distinct, generational with unisex, Social Security Data Scale. Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31 of even numbered years. The methods and assumptions shown above are based on the 2016 experience study which reviewed experience for the four-year period ending on December 31, 2016. ---PAGE BREAK--- - 41 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Long-Term Expected Rate of Return To develop an analytical basis for the selection of the long-term expected rate of return assumption, in July 2013 the PERS Board reviewed long-term assumptions developed by both Milliman’s capital market assumptions team and the Oregon Investment Council’s (OIC) investment advisors. The table below shows Milliman’s assumptions for each of the asset classes in which the plan was invested at that time based on the OIC long-term target asset allocation. The OIC’s description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption was based on a consistent set of underlying assumptions, and includes adjustment for the inflation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model. Asset Class Core Fixed Income 8.00 % 3.49 % Short-Term Bonds 8.00 3.38 Bank/Leveraged Loans 3.00 5.09 High Yield Bonds 1.00 6.45 Large/Mid Cap US Equities 15.75 6.30 Small Cap US Equities 1.31 6.69 Micro Cap US Equities 1.31 6.80 Developed Foreign Equities 13.13 6.71 Emerging Market Equities 4.12 7.45 Non-US Small Cap Equities 1.88 7.01 Private Equity 17.50 7.82 Real Estate (Property) 10.00 5.51 Real Estate (REITS) 2.50 6.37 Hedge Fund of Funds - Diversified 2.50 4.09 Hedge Fund - Event-driven 0.63 5.86 Timber 1.88 5.62 Farmland 1.88 6.15 Infrastructure 3.75 6.60 Commodities 1.88 3.84 Assumed Inflation - Mean 2.50 % Target Compound Annual Return (Geometric) Discount Rate The discount rate used to measure the total pension liability was 7.20% for the Defined Benefit Pension Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments for the Defined Benefit Pension Plan was applied to all periods of projected benefit payments to determine the total pension liability. ---PAGE BREAK--- - 42 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate The following presents the City’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.20%, as well as what the City’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.20%) or 1-percentage-point higher (8.20%) than the current rate: Proportionate share of the net pension liability $ 25,274,120 $ 15,782,405 $ 7,839,146 1% Decrease (6.20%) Discount Rate (7.20%) 1% Increase (8.20%) Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued OPERS financial report. DEFINED CONTRIBUTION PENSION PLANS The City sponsors two defined contribution pension plans. Both plan’s provisions and contribution requirements are established and amended by the City Council. The 401A is administered by ICMA Retirement Corp. to provide retirement benefits for the City Attorney. The City has established a contribution amount equivalent to approximately 7% of covered salary. The City contributed $8,424 to the plan for the year ended June 30, 2020. The 457 plan is administered by both ICMA Retirement Corporation and First Investors Financial Services, and provides additional retirement benefits for contract and unrepresented employees. The City has established matching contribution rates of 5% or 8.5%, depending on contractual agreements. The City contributed $178,944 to the plan for the year ended June 30, 2020. POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS The other postemployment benefits (OPEB) for the City combines two separate plans. The City provides an implicit rate subsidy for retiree health insurance premiums, and a contribution to the State of Oregon’s PERS cost- sharing multiple-employer defined health insurance benefit plan. ---PAGE BREAK--- - 43 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Financial Statement Presentation The City’s two OPEB plans are presented in the aggregate on the Statement of Net Position. The amounts on the financial statements relate to the plans as follows: Implicit Rate Subsidy Plan PERS RHIA Plan Total OPEB on Financials Total OPEB asset - $ 157,485 $ 157,485 $ Deferred Outflows of Resources Contributions After Measurement Date 38,599 40,436 79,035 Change in assumptions 18,060 - 18,060 Changes in proportionate share - 527 527 Total Deferred Outflows of Resources 56,659 40,963 97,622 Total OPEB Liability (653,590) - (653,590) Deferred Inflows of Resources Differences between expected and actual experience (12,842) (20,768) (33,610) Change in assumptions (106,415) (163) (106,578) Net difference between projected and actual earnings (9,721) (9,721) Changes in proportionate share (370) (370) Total Deferred Inflows of Resources (119,257) (31,022) (150,279) OPEB Expense/(Income) (10,218) 61,991 51,773 Implicit Rate Subsidy Plan Description The City’s single-employer defined benefit postemployment healthcare plan is administered by Citycounty Insurance Services (CIS). Benefit provisions are established through negotiations between the City and representatives of the City or through resolutions passed by City Council. No assets have been accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. The City’s postemployment healthcare plan administrator issues a publicly available financial report that includes financial statements and required supplementary information for CIS. This report may be obtained by writing to the CIS Main Office, 1212 Court Street NE, Salem OR 97301. Benefits Provided The plan provides eligible retirees and their dependents under age 65 the same health care coverage at the same premium rates as offered to active employees. The retiree is responsible for the premiums. ---PAGE BREAK--- - 44 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Implicit Rate Subsidy (Continued) As of the valuation date of July 1, 2018, the following employees were covered by the benefit terms: Inactive employees or beneficiaries receiving benefits 8 Active employees 112 120 Total OPEB Liability, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB The City’s total OPEB liability of $653,590 was measured as of June 30, 2019, and was determined by an actuarial valuation as of July 1, 2018. For the fiscal year ended June 30, 2020, the City recognized OPEB income from this plan of $10,218. At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred Outflow Deferred Inflow of Resources of Resources Differences between expected and actual experience - $ 12,842 $ Changes of assumptions 18,060 106,415 Contributions subsequent to measurement date 38,599 - Total 56,659 $ 119,257 $ Deferred outflows of resources related to OPEB of $56,659 resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended June 30: 2021 (15,521) $ 2022 (15,521) 2023 (15,521) 2024 (15,521) 2025 (15,521) Thereafter (23,592) Total (101,197) $ ---PAGE BREAK--- - 45 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Actuarial Assumptions and Other Inputs The total OPEB liability for the June 30, 2020 valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: inflation rate of 2.50%, projected salary increases of 3.50%, discount rate of 3.50% (change from 3.87% in the previous measurement period), medical and vision varies between 6.00% and 4.75% (due to the timing of the excise tax scheduled to affect health care benefits), dental at 4.50%, and mortality rates based on the RP-2014 healthy annuitant, sex-distinct, generational with unisex, Social Security Data Scale, with collar adjustments and setbacks. The discount rate was based on Bond Buyer 20-Year General Obligation Bond Index. Changes in the Total OPEB Liability Total OPEB Liability Balance as of June 30, 2019 618,796 $ Changes for the year: Service cost 39,806 Interest on total OPEB liability 24,532 Effect of assumptions changes or inputs 20,318 Benefit payments (49,862) Balance as of June 30, 2020 653,590 $ The effect of changes in assumptions is the result of the change in the discount rate from 3.87 to 3.50. Sensitivity of the Total OPEB Liability The following presents the City’s total OPEB liability, as well as what the liability would be if it were calculated using a discount rate that is 1 percentage point lower (2.50 percent) or 1 percentage point higher (4.50 percent) than the current discount rate. A similar sensitivity analysis is then presented for changes in the healthcare trend assumption. Discount Rate: 1% Decrease (2.50%) Current Discount Rate (3.50%) 1% Increase (4.50%) Total OPEB Liability 709,856 $ 653,590 $ 602,086 $ Healthcare Cost Trend: 1% Decrease (5.00% decreasing to 3.75%) Trend Rate (6.00% decreasing to 4.75%) 1% Increase (7.00% decreasing to 5.75%) Total OPEB Liability 582,357 $ 653,590 $ 739,119 $ ---PAGE BREAK--- - 46 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) PERS Retirement Health Insurance Account Plan Description The City contributes to the PERS Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-sharing multiple-employer defined benefit other postemployment benefit plan administered by PERS. RHIA pays a contribution toward the cost of Medicare companion health insurance premiums for eligible retirees. ORS 238.420 established this trust fund. Authority to establish and amend the benefit provisions of RHIA reside with the Oregon Legislature. The plan is closed to new entrants hired after August 29, 2003. PERS issues publicly available financial statements and required supplementary information. That report may be obtained by writing to Oregon Public Employees Retirement System, PO Box 23700, Tigard, OR 97281-3700 or online at: Benefits Provided Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of the plan members and the participating employers were established and may be amended only by the Oregon Legislature. ORS require that an amount equal to $60 or the total cost of Medicare companion health insurance premiums coverage, whichever is less, shall be paid from the RHIA established by the employer, and any cost in excess of $60 shall be paid by the eligible retired member in the manner provided in ORS 238.410. To be eligible to receive this payment toward the premium cost, the member must: have eight years or more of qualifying service in PERS at the time of retirement or receive a disability allowance as if the member had eight years or more of creditable service in PERS, receive both Medicare Parts A and B coverage, and enroll in a PERS-sponsored health plan. A surviving spouse or dependent of a deceased PERS retiree who was eligible to receive the subsidy is eligible to receive the subsidy if he or she is receiving a retirement benefit or allowance from PERS or was insured at the time the member died and the member retired before May 1, 1991. Contributions PERS funding policy provides for employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. Employer contribution rates for the period were based on the December 31, 2017 actuarial valuation. The rates based on a percentage of payroll, first became effective July 1, 2020. The City’s contribution rates for the period were 0.50% for Tier One/Tier Two members, and 0.43% for OPSRP members. The City’s total for the year ended June 30, 2020 contributions was $40,436. OPEB Assets, Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2020, the City reported an asset of $157,485 for its proportionate share of the OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2019 and was determined by an actuarial valuation as of December 31, 2017, rolled forward to June 30, 2019. The City’s proportion of the net OPEB asset was based on the City’s contributions to the RHIA program during the measurement period relative to contributions from all participating employers. At June 30, 2019, the City’s proportionate share was 0.0815%, which is a decrease from its proportion of 0.0825% as of June 30, 2018. ---PAGE BREAK--- - 47 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) PERS Retirement Health Insurance Account (Continued) For the year ended June 30, 2020, the City recognized OPEB expense from this plan of $51,773. At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred Outflow of Resources Deferred Inflow of Resources - $ 20,768 $ - 163 - 9,721 527 370 40,436 - Total 40,963 $ 31,022 $ Net difference between projected and actual earnings Change in proportionate share contributions subsequent to the MD Differences between expected and actual experience Changes of assumptions Deferred outflows of resources related to OPEB of $40,436 resulting from the City’s contributions subsequent to the measurement date will be recognized as either a reduction of the net OPEB liability or an increase in the net OPEB asset in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended June 30: 2021 (15,854) $ 2022 (13,869) 2023 (1,774) 2024 1,002 Total (30,495) $ Actuarial Methods and Assumptions See OPERS Pension Plan footnote for additional information on actuarial assumptions and methods, the long-term expected rate of return, and the discount rate. ---PAGE BREAK--- - 48 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 PERS Retirement Health Insurance Account (Continued) Sensitivity of the proportionate share of the net OPEB liability (asset) to changes in the discount rate The following presents the City’s proportionate share of the net OPEB liability (asset) calculated using the discount rate of 7.20%, as well as what the City’s proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1 percentage point lower (6.20%) or 1 percentage point higher (8.20%) than the current rate: 1% Decrease (6.20%) Discount Rate (7.20%) 1% Increase (8.20%) Net OPEB liability (asset) (122,092) $ (157,485) $ (187,644) $ OPEB Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued OPERS financial report. TRANSFERS Interfund transfers are as follows: Transfers To Urban Renewal Agency Governmental activities General $ - $ 56,750 $ 12,290 $ 40,990 $ 83,850 $ 150,599 $ 29,530 $ 378,959 Street - - - - - 90,000 - 90,000 Other non-major governmental 116,000 1,011,049 - 500,000 50,000 50,000 - 1,727,049 Total $ 116,000 $ 1,067,799 $ 12,290 $ 540,990 $ 133,850 $ 290,599 $ 29,530 $ 2,196,008 Reconciliation: Total internal charges to governmental activities from business-type activities 615,804 Total governmental funds (2,196,008) Total business-type activities 424,449 $ 1,040,253 Business-type Activities Transfers From Governmental Activities Total General Street Non-major Governmental Water Operations Sewer Operations Internal Service The primary purpose of transfers is 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. In the governmental activities column of the statement of activities, transfers between governmental funds have been eliminated. In a like manner, transfer between enterprise funds have been eliminated in the business-type activities column. ---PAGE BREAK--- - 49 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2020 EXPENDITURES IN EXCESS OF APPROPRIATIONS Expenditures in excess of appropriations for the year ending June 30, 2020 occurred as follows: Urban Renewal Debt service $ 268,500 $ 334,975 $ (66,475) Budget Actual Variance 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. SUBSEQUENT EVENTS Management has evaluated subsequent events through November 25, 2020, the date on which the financial statements were available to be issued. As noted on page 36, in July 2020, the City authorized a defeasance of all outstanding 2011 Wastewater Revenue and Refunding Bonds (Series A and In addition, subsequent to year end, the City received $687,000 in reimbursement basis COVID relief funding for expenditures through December 2020. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- - 50 - CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - BUDGETARY FUNDS REPORTED AS GENERAL FUND JUNE 30, 2020 General Fund PERS Reserve Total (reported as General Fund) ASSETS Cash and investments 6,617,203 $ - $ 6,617,203 $ Accounts receivable 728,941 - 728,941 Property taxes receivable 383,469 - 383,469 Prepaid expenses 23,390 - 23,390 Due from other funds 746,961 - 746,961 Total Assets 8,499,964 $ - $ 8,499,964 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable 144,934 - 144,934 Accrued payroll and payroll liabilities 532,239 - 532,239 Due to other funds 333,903 - - Total Liabilities 1,011,076 - 677,173 Deferred Inflows Unavailable revenue 652,966 - 652,966 Fund Balance: Non-spendable 23,390 - 23,390 Unassigned 6,812,532 - 6,812,532 Total Fund Balance 6,835,922 - 6,835,922 Total Liabilities, Deferred Inflows and Fund Balance 8,499,964 $ - $ 8,499,964 $ Budgetary funds ---PAGE BREAK--- - 51 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGETARY FUNDS REPORTED AS GENERAL FUND YEAR ENDED JUNE 30, 2020 General Fund PERS Reserve Eliminations Total (reported as General Fund) REVENUES Taxes and assessments 9,932,526 $ - $ - $ 9,932,526 $ Licenses and permits 1,999,971 - - 1,999,971 Charges for services 903,988 - - 903,988 Intergovernmental 1,020,875 - - 1,020,875 Fines and forfeitures 352,400 - - 352,400 Miscellaneous 872,439 19,464 - 891,903 Total Revenues 15,082,199 19,464 - 15,101,663 EXPENDITURES Administration 1,289,009 - - 1,289,009 Economic development 138,365 - - 138,365 Nondepartmental 284,530 2,824,043 - 3,108,573 Police 7,574,867 - - 7,574,867 Community services 3,103,380 - - 3,103,380 Planning 470,851 - - 470,851 Engineering 242,796 - - 242,796 Debt Service Principal 532,000 - - 532,000 Interest 42,391 - - 42,391 Total Expenditures 13,678,189 2,824,043 - 16,502,232 REVENUES OVER (UNDER) EXPENDITURES 1,404,010 (2,804,579) - (1,400,569) OTHER FINANCING SOURCES (USES) Transfers in - 1,126,299 (752,290) 374,009 Transfers out (868,290) - 752,290 (116,000) Proceeds from sales of assets 22,115 - - 22,115 Total Other Financing Sources (Uses) (846,175) 1,126,299 - 280,124 NET CHANGE IN FUND BALANCE 557,835 (1,678,280) - (1,120,445) FUND BALANCE, beginning of year 6,278,087 1,678,280 - 7,956,367 FUND BALANCE, end of year 6,835,922 $ - $ - $ 6,835,922 $ Budgetary funds ---PAGE BREAK--- - 52 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND (BUDGETARY BASIS) YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Taxes and assessments 9,943,000 $ 9,943,000 $ 9,932,526 $ (10,474) $ Licenses and permits 159,700 159,700 209,334 49,634 Franchise fees 1,896,700 1,896,700 1,790,637 (106,063) Charges for services 1,070,110 1,070,110 903,988 (166,122) Intergovernmental 906,500 906,500 1,020,875 114,375 Fines and forfeitures 456,500 456,500 352,400 (104,100) Miscellaneous 706,520 706,520 872,439 165,919 Total Revenues 15,139,030 15,139,030 15,082,199 (56,831) EXPENDITURES Administration 1,389,700 1,389,700 1,289,009 100,691 Economic development 170,290 170,290 138,365 31,925 Nondepartmental 339,100 339,100 284,530 54,570 Police 8,078,740 8,078,740 7,574,867 503,873 Community services 3,606,040 3,606,040 3,103,380 502,660 Planning 496,460 496,460 470,851 25,609 Engineering 290,420 290,420 242,796 47,624 Debt service Principal 500,000 500,000 532,000 (32,000) * Interest 75,000 75,000 42,391 32,609 Contingency 3,761,890 3,301,890 - 3,301,890 Total Expenditures 18,707,640 18,247,640 13,678,189 4,569,451 REVENUES OVER (UNDER) EXPENDITURES (3,568,610) (3,108,610) 1,404,010 4,512,620 OTHER FINANCING SOURCES (USES) Transfers out (408,290) (868,290) (868,290) - Proceeds from sale of assets 25,000 25,000 22,115 (2,885) Total Other Financing Sources (Uses) (383,290) (843,290) (846,175) (2,885) NET CHANGE IN FUND BALANCE (3,951,900) (3,951,900) 557,835 4,509,735 FUND BALANCE, beginning of year 5,306,900 5,306,900 6,278,087 971,187 FUND BALANCE, end of year 1,355,000 $ 1,355,000 $ 6,835,922 5,480,922 $ Budget Amounts *Debt service is appropriated as a combined total therefore this is not an overexpenditure of appropriations. ---PAGE BREAK--- - 53 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – PERS RESERVE FUND (BUDGETARY BASIS) YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Miscellaneous 60,000 $ 60,000 $ 19,464 $ (40,536) $ EXPENDITURES Materials and services 2,089,710 2,824,710 2,824,043 667 REVENUES OVER (UNDER) EXPENDITURES (2,029,710) (2,764,710) (2,804,579) (39,869) OTHER FINANCING SOURCES (USES) Transfers in 362,710 1,097,710 1,126,299 28,589 NET CHANGE IN FUND BALANCE (1,667,000) (1,667,000) (1,678,280) (11,280) FUND BALANCE, beginning of year 1,667,000 1,667,000 1,678,280 11,280 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 - STREET FUND (BUDGETARY BASIS) YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Taxes and assessments 130,000 $ 130,000 $ 101,204 $ (28,796) $ Licenses and permits 500 500 369 (131) Franchise fees 368,000 368,000 353,518 (14,482) Intergovernmental 1,500,000 1,500,000 1,707,151 207,151 Miscellaneous 196,180 196,180 123,912 (72,268) Total Revenues 2,194,680 2,194,680 2,286,154 91,474 EXPENDITURES Street 2,787,780 2,787,780 1,654,523 1,133,257 Contingency 1,000,000 954,000 - 954,000 Total Expenditures 3,787,780 3,741,780 1,654,523 2,087,257 REVENUES OVER (UNDER) EXPENDITURES (1,593,100) (1,547,100) 631,631 2,178,731 OTHER FINANCING SOURCES (USES) Transfers in 90,000 90,000 90,000 - Transfers out (2,095,750) (2,141,750) (1,067,799) 1,073,951 Total Other Financing Sources (Uses) (2,005,750) (2,051,750) (977,799) 1,073,951 NET CHANGE IN FUND BALANCE (3,598,850) (3,598,850) (346,168) 3,252,682 FUND BALANCE, beginning of year 4,057,800 4,057,800 4,589,031 531,231 FUND BALANCE, end of year 458,950 $ 458,950 $ 4,242,863 $ 3,783,913 $ Budget Amounts ---PAGE BREAK--- - 55 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - URBAN RENEWAL FUND (BUDGETARY BASIS) YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Taxes and assessments 785,800 $ 785,800 $ 775,881 $ (9,919) $ Intergovernmental 1,000,000 1,000,000 1,040,152 40,152 Miscellaneous 39,200 39,200 42,547 3,347 Total Revenues 1,825,000 1,825,000 1,858,580 33,580 EXPENDITURES Personal services 228,580 228,580 202,723 25,857 Materials and services 271,120 271,120 166,466 104,654 Capital outlay 3,713,500 3,713,500 2,359,821 1,353,679 Debt service Principal 150,000 150,000 260,000 (110,000) Interest 118,500 118,500 74,975 43,525 Contingency 200,010 190,010 - 190,010 Total Expenditures 4,681,710 4,671,710 3,063,985 2,987,260 REVENUES OVER (UNDER) EXPENDITURES (2,856,710) (2,846,710) (1,205,405) 3,020,840 OTHER FINANCING SOURCES (USES) Transfers out (2,290) (12,290) (12,290) - NET CHANGE IN FUND BALANCE (2,859,000) (2,859,000) (1,217,695) 3,020,840 FUND BALANCE, beginning of year 3,159,000 3,159,000 2,572,007 (586,993) FUND BALANCE, end of year 300,000 $ 300,000 $ 1,354,312 $ 2,433,847 $ Budget Amounts ---PAGE BREAK--- - 56 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM LAST SEVER FISCAL YEARS 1 2020 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability (asset) 0.0912% 0.0856% 0.0994% 0.1081% 0.1224% 0.1145% 0.1145% 15,782,405 $ 12,969,468 $ 13,401,200 $ 16,230,093 $ 7,026,676 $ (2,595,126) $ 5,842,512 $ City's covered-employee payroll 8,868,978 8,950,436 8,800,124 8,344,438 8,457,225 8,048,595 7,956,480 City's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll 178.0% 144.9% 152.3% 194.5% 83.1% -32.2% 73.4% Plan fiduciary net position as a percentage of the total pension liability 80.2% 82.1% 83.1% 80.5% 91.9% 103.6% 92.0% 1 10-year trend information required by GASB Statement 68 will be presented prospectively City's proportionate share of the net pension liability (asset) ---PAGE BREAK--- - 57 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S CONTRIBUTIONS OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM LAST SEVEN FISCAL YEARS 1 2020 2019 2018 2017 2016 2015 2014 Contractually required contributions 1,874,810 $ 1,407,165 $ 1,347,984 $ 1,034,667 $ 1,096,838 $ 1,046,147 $ 1,022,429 $ Contributions in relation to the contractually required contribution (1,874,810) (1,407,165) (1,347,984) (1,034,667) (1,096,838) (1,046,147) (1,022,429) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ City's covered-employee payroll 10,145,281 $ 8,868,978 $ 8,950,436 $ 8,800,124 $ 8,344,438 $ 8,457,225 $ 8,048,595 $ . Contributions as a percentage of covered-employee payroll 18.48% 15.87% 15.06% 11.76% 13.14% 12.37% 12.70% 1 10-year trend information required by GASB Statement 68 will be presented prospectively ---PAGE BREAK--- - 58 - CITY OF WOODBURN, OREGON SCHEDULE OF CHANGES IN TOTAL OTHER POST-EMPLOYMENT BENEFITS LIABILITY AND RELATED RATIOS - IMPLICIT RATE SUBSIDY LAST THREE FISCAL YEARS1 2020 2019 2018 Service cost 39,806 $ 47,892 $ 51,565 $ Interest on total OPEB liability 24,532 25,949 21,016 Effect of economic/demographic gains or (losses) - (16,512) - Effect of assumption change or inputs 20,318 (96,751) (46,746) Benefit payments (49,862) (37,144) (32,401) Net change in total OPEB liability 34,794 (76,566) (6,566) Net OPEB liability, beginning 618,796 695,362 701,928 Net OPEB liability, ending 653,590 $ 618,796 $ 695,362 $ Covered payroll 10,145,281 $ 8,868,978 $ 8,950,436 $ Total OPEB liability as a % of covered payroll 6.4% 7.0% 7.8% Notes: The above table presents the most recent actuarial valuations for the City's post-employment health insurance benefits plan and provides information that approximates the funding progress of the plan. There are no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. 1 10-year trend information required by GASB Statement 75 will be presented prospectively ---PAGE BREAK--- - 59 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY (ASSET) OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM RETIREE HEALTH INSURANCE ACCOUNT LAST FOUR FISCAL YEARS 1 2020 2019 2018 2017 City's proportion of the net OPEB liability (asset) 0.0815% 0.0825% 0.0815% 0.0869% (157,485) $ (92,049) $ (34,002) $ 23,610 $ City's covered-employee payroll 8,868,978 8,950,436 8,800,124 8,344,438 City's proportionate share of the net OPEB liability (asset) as a percentage of its covered-employee payroll -1.8% -1.0% -0.4% 0.3% Plan fiduciary net position as a percentage of the total pension liability 124.0% 124.0% 108.9% 94.2% 1 10-year trend information required by GASB Statement 75 will be presented prospectively City's proportionate share of the net OPEB liability (asset) ---PAGE BREAK--- - 60 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S CONTRIBUTIONS OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM RETIREE HEALTH INSURANCE ACCOUNT LAST FOUR FISCAL YEARS 1 2020 2019 2018 2017 Contractually required contributions 40,436 $ 39,580 $ 40,561 $ 38,765 $ Contributions in relation to the contractually required contribution (40,436) (39,580) (40,561) (38,765) Contribution deficiency (excess) - $ - $ - $ - $ City's covered-employee payroll 10,145,281 $ 10,145,281 $ 8,950,436 $ 8,800,124 $ Contributions as a percentage of covered-employee payroll 0.40% 0.39% 0.45% 0.44% 1 10-year trend information required by GASB Statement 75 will be presented prospectively ---PAGE BREAK--- - 61 - CITY OF WOODBURN, OREGON NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2020 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Budgetary Information On or before June 30 of each year, the City enacts a resolution approving the budget, appropriating the expenditures, and levying the property taxes. The City’s budget is presented on the modified accrual basis of accounting which is the same basis as GAAP with the exception of interfund loans, which are not reported on the budgetary basis. Prior to enacting this resolution, the proposed budget is presented to a budget committee consisting of members of the City Council and a like number of interested citizens. The budget committee presents the budget to the City Council for budget hearings prior to enactment of the resolution. The City budgets all funds as required by Oregon Local Budget Law. The resolution authorizing appropriations for each fund sets the legal level of control by which expenditures cannot legally exceed appropriations. Appropriations of expenditures are made at the program/function level for all funds. The detail budget document is required to contain more specific information for the above mentioned expenditure categories. Unexpected additional resources may be added to the budget through the use of a supplemental budget. A supplemental budget requires hearings before the public, publications in newspapers, and adoption by the City Council. Management may modify original and supplemental budgets by the use of appropriation transfers between the legal levels of control within a fund. Such transfers require approval by the City Council. Management may not amend the budget without seeking the approval of the Council. Appropriations lapse as of year-end. Changes in Benefit Terms The Oregon Supreme Court on April 30, 2015, ruled that the provisions of Senate Bill 861, signed into law in October 2013, that limited the post-retirement COLA on benefits accrued prior to the signing of the law was unconstitutional. Benefits could be modified prospectively, but not retrospectively. As a result, those who retired before the bills were passed will continue to receive a COLA tied to the Consumer Price Index that normally results in a 2% increase annually. OPERS will make restoration payments to those benefit recipients. Senate Bill 822 lowered the COLA from 2% to 1.5% for recipients who do not pay Oregon income tax because they are not residents of Oregon. OPERS members who have accrued benefits before and after the effective dates of the 2013 legislation will have a blended COLA rate when they retire. This is a change in benefit terms was not included in the net pension liability (asset) proportionate shares provided by OPERS for the years ending June 30, 2015 and June 30, 2014. Changes of assumptions Details and a comprehensive list of changes in methods and assumptions can be found in the 2012, 2014, and 2016 experience study for the System, which were published on September 18, 2013, September 23, 2015, and July 26, 2017, respectively. These reports can be found at: http://www.oregon.gov/PERS/Pages/Financials/Actuarial- Presentations-and-Reports.aspx. ---PAGE BREAK--- - 62 - CITY OF WOODBURN, OREGON NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2020 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) Other Postemployment Benefits The tables on pages 58-60 present the activities, changes in the proportionate share and contributions related to the City’s postemployment health insurance benefit plans (implicit rate subsidy and retirees health insurance account) based on the most recent actuarial valuations for the City. There are no assets accumulated in a trust that meet the criteria in paragraph 4 of GASB Statement No. 75. ---PAGE BREAK--- SUPPLEMENTARY INFORMATION ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2020 Transit Building Inspection Asset Forfeiture ASSETS Cash and investments - $ 1,255,728 $ 15,132 $ Accounts receivable 227,923 - - Property taxes receivable - - - Assessment liens receivable - - - Loans receivable - - - Prepaid expenses - - - Total Assets 227,923 $ 1,255,728 $ 15,132 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities: Accounts payable 4,428 $ 62,812 $ - $ Due to other funds 88,494 22,930 - Total Liabilities 92,922 85,742 - Deferred Inflows: Unavailable revenue - - - Fund Balance: Non-spendable - - - Restricted for: Debt service - - - Construction - - - Culture and recreation 135,001 - - Community development - - - Committed to: Public safety - - 15,132 Capital outlay - - - Planning and building - 1,169,986 - Total Fund Balance 135,001 1,169,986 15,132 Total Liabilities, Deferred Inflows and Fund Balance 227,923 $ 1,255,728 $ 15,132 $ Special Revenue ---PAGE BREAK--- - 63 - Housing Rehabilitation Lavelle Black Trust Special Assessment Street & Storm Capital Construction Parks SDC General Capital Construction 411,525 $ 35,171 $ 29,978 $ 905,159 $ 713,259 - $ - - - - - 432,051 - - - - - - - - 20,460 - - - 497,714 - - - - - - - - - - 3,300 909,239 $ 35,171 $ 50,438 $ 905,159 $ 713,259 $ 435,351 $ - $ - $ - $ 119,719 $ - $ 74,200 $ 95 - - - - 106,046 95 - - 119,719 - 180,246 497,714 - 20,460 - - - - - - - - 3,300 - - - - - - - - - 785,440 713,259 251,805 - 35,171 - - - - 411,430 - - - - - - - - - - - - - 29,978 - - - - - - - - - 411,430 35,171 29,978 785,440 713,259 255,105 909,239 $ 35,171 $ 50,438 $ 905,159 $ 713,259 $ 435,351 $ Special Revenue Capital Projects ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) JUNE 30, 2020 Street SDC Storm SDC Equipment Replacement ASSETS Cash and investments 3,822,980 $ 708,817 $ 719,161 $ Accounts receivable - - - Property taxes receivable - - - Assessment liens receivable - - - Loans receivable - - - Prepaid expenses - - - Total Assets 3,822,980 $ 708,817 $ 719,161 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities: Accounts payable - $ - $ - $ Due to other funds - - - Total Liabilities - - - Deferred Inflows: Unavailable revenue - - - Fund Balance: Non-spendable - - - Restricted for: Debt service - - - Construction 3,822,980 708,817 - Culture and recreation - - - Community development - - - Committed to: Public safety - - - Capital outlay - - 719,161 Planning and building - - - Total Fund Balance 3,822,980 708,817 719,161 Total Liabilities, Deferred Inflows and Fund Balance 3,822,980 $ 708,817 $ 719,161 $ Capital Projects ---PAGE BREAK--- - 64 - Debt Service GO Debt Service Total 31,798 $ 8,648,708 $ - 659,974 23,394 23,394 - 20,460 - 497,714 - 3,300 55,192 $ 9,853,550 $ - $ 261,159 $ - 217,565 - 478,724 22,588 540,762 - 3,300 32,604 32,604 - 6,282,301 - 170,172 - 411,430 - 15,132 - 749,139 - 1,169,986 32,604 8,834,064 55,192 $ 9,853,550 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 Transit Building Inspection Asset Forfeiture REVENUES Taxes and assessments - $ - $ - $ Licenses and permits - 823,240 - Charges for services 26,798 - - Intergovernmental 828,932 175,619 - Miscellaneous 9,399 23,948 331 Total Revenues 865,129 1,022,807 331 EXPENDITURES Current Culture and recreation 919,763 - - Economic development - 882,011 - Debt service Principal - - - Interest - - - Capital outlay - - - Total Expenditures 919,763 882,011 - REVENUES OVER (UNDER) EXPENDITURES (54,634) 140,796 331 OTHER FINANCING SOURCES (USES) Transfers in 116,000 - - Transfers out (6,510) (34,480) - Proceeds from sales of assets 64 - - Total Other Financing Sources (Uses) 109,554 (34,480) - NET CHANGE IN FUND BALANCE 54,920 106,316 331 FUND BALANCE, beginning of year 80,081 1,063,670 14,801 FUND BALANCE, end of year 135,001 $ 1,169,986 $ 15,132 $ Special Revenue ---PAGE BREAK--- - 65 - Housing Rehabilitation Lavelle Black Trust Special Assessment Street & Storm Capital Construction - $ - $ - $ - $ - - - - - - - - - - - 1,000,000 58,543 942 11,158 - 58,543 942 11,158 1,000,000 - 2,660 - - 2,604 - - - - - - - - - - - - - - 1,675,609 2,604 2,660 - 1,675,609 55,939 (1,718) 11,158 (675,609) - - - 1,461,049 - - - - - - - - - - - 1,461,049 55,939 (1,718) 11,158 785,440 355,491 36,889 18,820 - 411,430 $ 35,171 $ 29,978 $ 785,440 $ Special Revenue Capital Projects ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2020 Parks SDC General Capital Construction Street SDC REVENUES Taxes and assessments - $ - $ - $ Licenses and permits 185,033 - 504,314 Charges for services - - - Intergovernmental - 647,528 - Miscellaneous 12,377 11,588 81,224 Total Revenues 197,410 659,116 585,538 EXPENDITURES Current Culture and recreation - - - Economic development - - Debt service Principal - - - Interest - - - Capital outlay - 1,221,540 - Total Expenditures - 1,221,540 - REVENUES OVER (UNDER) EXPENDITURES 197,410 (562,424) 585,538 OTHER FINANCING SOURCES (USES) Transfers in - - - Transfers out - - (500,000) Proceeds from sales of assets - - - Total Other Financing Sources (Uses) - - (500,000) NET CHANGE IN FUND BALANCE 197,410 (562,424) 85,538 FUND BALANCE, beginning of year 515,849 817,529 3,737,442 FUND BALANCE, end of year 713,259 $ 255,105 $ 3,822,980 $ Capital Projects ---PAGE BREAK--- - 66 - Debt Service Storm SDC Equipment Replacement GO Debt Service Total - $ - $ 575,048 $ 575,048 $ 29,686 - - 1,542,273 - - - 26,798 - - - 2,652,079 15,006 17,191 6,698 248,405 44,692 17,191 581,746 5,044,603 - - - 922,423 - - - 884,615 - - 511,000 511,000 - 57,515 57,515 - 255,694 - 3,152,843 - 255,694 568,515 5,528,396 44,692 (238,503) 13,231 (483,793) - 150,000 - 1,727,049 - - - (540,990) - - - 64 - 150,000 - 1,186,123 44,692 (88,503) 13,231 702,330 664,125 807,664 19,373 8,131,734 708,817 $ 719,161 $ 32,604 $ 8,834,064 $ Capital Projects ---PAGE BREAK--- - 67 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - TRANSIT FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Charges for services 53,000 $ 53,000 $ 26,798 $ (26,202) $ Intergovernmental 808,600 808,600 828,932 20,332 Miscellaneous 12,640 12,640 9,399 (3,241) Total Revenues 874,240 874,240 865,129 (9,111) EXPENDITURES Transit 1,061,550 1,061,550 919,763 141,787 Contingency 166,940 166,940 - 166,940 Total Expenditures 1,228,490 1,228,490 919,763 308,727 REVENUES OVER (UNDER) EXPENDITURES (354,250) (354,250) (54,634) 299,616 OTHER FINANCING SOURCES (USES) Transfers in 116,000 116,000 116,000 - Transfers out (6,510) (6,510) (6,510) - Proceeds from sale of assets - - 64 64 Total Other Financing Sources (Uses) 109,490 109,490 109,554 64 NET CHANGE IN FUND BALANCE (244,760) (244,760) 54,920 299,680 FUND BALANCE, beginning of year 244,760 244,760 80,081 (164,679) FUND BALANCE, end of year - $ - $ 135,001 $ 135,001 $ Budget Amounts ---PAGE BREAK--- - 68 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - BUILDING INSPECTION FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Licenses and permits 781,590 $ 781,590 $ 823,240 $ 41,650 $ Intergovernmental 730,940 730,940 175,619 (555,321) Miscellaneous 37,400 37,400 23,948 (13,452) Total Revenues 1,549,930 1,549,930 1,022,807 (527,123) EXPENDITURES Building inspection 1,503,480 1,503,480 882,011 621,469 Contingency 1,322,040 1,294,040 - 1,294,040 Total Expenditures 2,825,520 2,797,520 882,011 1,915,509 REVENUES OVER (UNDER) EXPENDITURES (1,275,590) (1,247,590) 140,796 1,388,386 OTHER FINANCING SOURCES (USES) Transfers out (6,480) (34,480) (34,480) - NET CHANGE IN FUND BALANCE (1,282,070) (1,282,070) 106,316 1,388,386 FUND BALANCE, beginning of year 1,282,070 1,282,070 1,063,670 (218,400) FUND BALANCE, end of year - $ - $ 1,169,986 $ 1,169,986 $ Budget Amounts ---PAGE BREAK--- - 69 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – ASSET FORFEITURE FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Miscellaneous 320 $ 320 $ 331 $ 11 $ EXPENDITURES Asset forfeiture 15,000 15,000 - 15,000 NET CHANGE IN FUND BALANCE (14,680) (14,680) 331 15,011 FUND BALANCE, beginning of year 14,680 14,680 14,801 121 FUND BALANCE, end of year - $ - $ 15,132 $ 15,132 $ Budget Amounts ---PAGE BREAK--- - 70 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - HOUSING REHABILITATION FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Miscellaneous 24,030 $ 24,030 $ 58,543 $ 34,513 $ EXPENDITURES Housing rehab 20,350 20,350 2,604 17,746 Contingency 357,480 357,480 - 357,480 Total Expenditures 377,830 377,830 2,604 375,226 NET CHANGE IN FUND BALANCE (353,800) (353,800) 55,939 409,739 FUND BALANCE, beginning of year 353,800 353,800 355,491 1,691 FUND BALANCE, end of year - $ - $ 411,430 $ 411,430 $ Budget Amounts ---PAGE BREAK--- - 71 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LAVELLE BLACK TRUST FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Miscellaneous 1,180 $ 1,180 $ 942 $ (238) $ EXPENDITURES Materials and services 20,000 20,000 2,660 17,340 Contingency 8,920 8,920 - 8,920 Total Expenditures 28,920 28,920 2,660 26,260 NET CHANGE IN FUND BALANCE (27,740) (27,740) (1,718) 26,022 FUND BALANCE, beginning of year 27,740 27,740 36,889 9,149 FUND BALANCE, end of year - $ - $ 35,171 $ 35,171 $ Budget Amounts ---PAGE BREAK--- - 72 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SPECIAL ASSESSMENT FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Miscellaneous 3,740 $ 3,740 $ 11,158 $ 7,418 $ EXPENDITURES Contingency 21,720 21,720 - 21,720 NET CHANGE IN FUND BALANCE (17,980) (17,980) 11,158 29,138 FUND BALANCE, beginning of year 17,980 17,980 18,820 840 FUND BALANCE, end of year - $ - $ 29,978 $ 29,978 $ Budget Amounts ---PAGE BREAK--- - 73 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STREET & STORM CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Intergovernmental 1,600,000 $ 1,600,000 $ 1,000,000 $ (600,000) $ EXPENDITURES Capital outlay 5,275,000 5,275,000 1,675,609 3,599,391 REVENUES OVER (UNDER) EXPENDITURES (3,675,000) (3,675,000) (675,609) 2,999,391 OTHER FINANCING SOURCES (USES) Transfers in 3,675,000 3,675,000 1,461,049 (2,213,951) NET CHANGE IN FUND BALANCE - - 785,440 785,440 FUND BALANCE, beginning of year - - - - FUND BALANCE, end of year - $ - $ 785,440 $ 785,440 $ Budget Amounts ---PAGE BREAK--- - 74 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – PARKS SDC FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Licenses and permits 300,000 $ 300,000 $ 185,033 $ (114,967) $ Miscellaneous 12,320 12,320 12,377 57 Total Revenues 312,320 312,320 197,410 (114,910) EXPENDITURES - - - - NET CHANGE IN FUND BALANCE 312,320 312,320 197,410 (114,910) FUND BALANCE, beginning of year 617,030 617,030 515,849 (101,181) FUND BALANCE, end of year 929,350 $ 929,350 $ 713,259 $ (216,091) $ Budget Amounts ---PAGE BREAK--- - 75 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Intergovernmental - $ - $ 647,528 $ 647,528 $ Miscellaneous - - 11,588 11,588 Total Revenues - - 659,116 659,116 EXPENDITURES Capital outlay 2,466,020 2,466,020 1,221,540 1,244,480 NET CHANGE IN FUND BALANCE (2,466,020) (2,466,020) (562,424) 1,903,596 FUND BALANCE, beginning of year 2,466,020 2,466,020 817,529 (1,648,491) FUND BALANCE, end of year - $ - $ 255,105 $ 255,105 $ Budget Amounts ---PAGE BREAK--- - 76 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STREET SDC FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Licenses and permits 500,000 $ 500,000 $ 504,314 $ 4,314 $ Miscellaneous 97,830 97,830 81,224 (16,606) Total Revenues 597,830 597,830 585,538 (12,292) OTHER FINANCING SOURCES (USES) Transfers out (1,500,000) (1,500,000) (500,000) 1,000,000 NET CHANGE IN FUND BALANCE (902,170) (902,170) 85,538 987,708 FUND BALANCE, beginning of year 3,745,400 3,745,400 3,737,442 - FUND BALANCE, end of year 2,843,230 $ 2,843,230 $ 3,822,980 $ 987,708 $ Budget Amounts ---PAGE BREAK--- - 77 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STORM SDC FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Licenses and permits 25,000 $ 25,000 $ 29,686 $ 4,686 $ Miscellaneous 19,150 19,150 15,006 (4,144) Total Revenues 44,150 44,150 44,692 542 OTHER FINANCING SOURCES (USES) Transfers out (140,000) (140,000) - 140,000 NET CHANGE IN FUND BALANCE (95,850) (95,850) 44,692 140,542 FUND BALANCE, beginning of year 642,430 642,430 664,125 21,695 FUND BALANCE, end of year 546,580 $ 546,580 $ 708,817 $ 162,237 $ Budget Amounts ---PAGE BREAK--- - 78 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – EQUIPMENT REPLACEMENT FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Miscellaneous 21,180 $ 21,180 $ 17,191 $ (3,989) $ EXPENDITURES Capital outlay 977,040 977,040 255,694 721,346 REVENUES OVER (UNDER) EXPENDITURES (955,860) (955,860) (238,503) 717,357 OTHER FINANCING SOURCES (USES) Transfers in 150,000 150,000 150,000 - NET CHANGE IN FUND BALANCE (805,860) (805,860) (88,503) 717,357 FUND BALANCE, beginning of year 805,860 805,860 807,664 1,804 FUND BALANCE, end of year - $ - $ 719,161 $ 719,161 $ Budget Amounts ---PAGE BREAK--- - 79 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – G.O. DEBT SERVICE FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Taxes and assessments 562,430 $ 562,430 $ 575,048 $ 12,618 $ Miscellaneous 5,970 5,970 6,698 728 Total Revenues 568,400 568,400 581,746 13,346 EXPENDITURES Debt service Principal 511,000 511,000 511,000 - Interest 59,200 59,200 57,515 1,685 Total Expenditures 570,200 570,200 568,515 1,685 NET CHANGE IN FUND BALANCE (1,800) (1,800) 13,231 15,031 FUND BALANCE, beginning of year 1,800 1,800 19,373 17,573 FUND BALANCE, end of year - $ - $ 32,604 $ 32,604 $ Budget Amounts ---PAGE BREAK--- - 80 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – WATER OPERATIONS COMBINING YEAR ENDED JUNE 30, 2020 Water Water SDC Water Capital Construction Total Water Operations REVENUES Charges for services 3,990,442 $ - $ - $ 3,990,442 $ Licenses and permits - 296,217 - 296,217 Miscellaneous 61,379 - - 61,379 Interest earnings 59,579 38,172 39,259 137,010 Total Revenues 4,111,400 334,389 39,259 4,485,048 EXPENDITURES Water 2,429,005 - - 2,429,005 Debt service Principal 1,422,000 - - 1,422,000 Interest 202,948 - - 202,948 Capital outlay - - 178,082 178,082 Total Expenses 4,053,953 - 178,082 4,232,035 REVENUES OVER (UNDER) EXPENDITURES 57,447 334,389 (138,823) 253,013 OTHER FINANCING SOURCES (USES) Transfers out (133,850) - - (133,850) CHANGE IN FUND BALANCE (76,403) 334,389 (138,823) 119,163 FUND BALANCE, beginning of year 2,523,142 1,628,430 1,805,444 5,957,016 FUND BALANCE, end of year 2,446,739 $ 1,962,819 $ 1,666,621 $ 6,076,179 RECONCILIATION TO NET POSITION- GAAP BASIS Capital assets, net 10,808,166 OPEB asset 14,648 Deferred outflows related to PERS 588,543 Deferred outflows related to OPEB 9,728 Deferred charges on refunding 903 Compensated absences (42,048) Accrued interest payable (14,424) Net pension liability (1,141,794) OPEB liability (67,269) Long-term debt (6,192,000) Deferred inflows related to PERS (201,774) Deferred inflows related to OPEB (14,168) NET POSITION - GAAP BASIS 9,824,690 $ ---PAGE BREAK--- - 81 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL - WATER FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Charges for services 3,982,000 $ 3,982,000 $ 3,990,442 $ 8,442 $ Miscellaneous 55,520 55,520 61,379 5,859 Interest earnings 65,480 65,480 59,579 (5,901) Total Revenues 4,103,000 4,103,000 4,111,400 8,400 EXPENDITURES Water 2,720,490 2,652,490 2,429,005 223,485 Debt service Principal 1,422,000 1,422,000 1,422,000 - Interest 202,950 202,950 202,948 2 Contingency 128,780 128,780 - 128,780 Total Expenditures 4,474,220 4,406,220 4,053,953 352,267 REVENUES OVER (UNDER) EXPENDITURES (371,220) (303,220) 57,447 360,667 OTHER FINANCING SOURCES (USES) Transfers out (65,850) (133,850) (133,850) - Proceeds from sale of assets 2,000 2,000 - (2,000) Total Other Financing Sources (Uses) (63,850) (131,850) (133,850) (2,000) NET CHANGE IN FUND BALANCE (435,070) (435,070) (76,403) 358,667 FUND BALANCE, beginning of year 2,400,000 2,400,000 2,523,142 123,142 FUND BALANCE, end of year 1,964,930 $ 1,964,930 $ 2,446,739 $ 481,809 $ Budget Amounts ---PAGE BREAK--- - 82 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - WATER SDC FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Licenses and permits 200,000 $ 200,000 $ 296,217 $ 96,217 $ Interest earnings 44,350 44,350 38,172 (6,178) Total Revenues 244,350 244,350 334,389 90,039 OTHER FINANCING SOURCES (USES) Transfers out (902,500) (902,500) - 902,500 NET CHANGE IN FUND BALANCE (658,150) (658,150) 334,389 992,539 FUND BALANCE, beginning of year 1,512,850 1,512,850 1,628,430 115,580 FUND BALANCE, end of year 854,700 $ 854,700 $ 1,962,819 $ 1,108,119 $ Budget Amounts ---PAGE BREAK--- - 83 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – WATER CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Interest earnings 55,130 $ 55,130 $ 39,259 $ (15,871) $ EXPENDITURES Capital outlay 2,786,360 2,786,360 178,082 2,608,278 REVENUES OVER (UNDER) EXPENDITURES (2,731,230) (2,731,230) (138,823) 2,592,407 OTHER FINANCING SOURCES (USES) Transfers in 902,500 902,500 - (902,500) NET CHANGE IN FUND BALANCE (1,828,730) (1,828,730) (138,823) 1,689,907 FUND BALANCE, beginning of year 1,828,730 1,828,730 1,805,444 (23,286) FUND BALANCE, end of year - $ - $ 1,666,621 $ 1,666,621 $ Budget Amounts ---PAGE BREAK--- - 84 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – SEWER OPERATIONS COMBINING YEAR ENDED JUNE 30, 2020 Sewer Sewer SDC Sewer Capital Construction Eliminations Total Sewer Operations REVENUES Charges for services 8,122,190 $ - $ - $ - $ 8,122,190 $ Licenses and permits - 129,584 - . 129,584 Miscellaneous 9,623 - - - 9,623 Interest earnings 181,494 38,904 264,648 - 485,046 Total Revenues 8,313,307 168,488 264,648 - 8,746,443 EXPENDITURES Sewer 4,158,818 - - - 4,158,818 Debt service Principal 3,469,529 - - - 3,469,529 Interest 999,334 - - - 999,334 Capital outlay - - 525,420 - 525,420 Total Expenses 8,627,681 - 525,420 - 9,153,101 REVENUES OVER (UNDER) EXPENDITURES (314,374) 168,488 (260,772) - (406,658) OTHER FINANCING SOURCES (USES) Transfers in - - 144,516 (144,516) - Transfers out (355,115) (80,000) - 144,516 (290,599) Total Other Financing Sources (Uses) (355,115) (80,000) 144,516 - (290,599) CHANGE IN FUND BALANCE (669,489) 88,488 (116,256) - (697,257) FUND BALANCE, beginning of year 8,672,867 1,700,425 11,947,434 - 22,320,726 FUND BALANCE, end of year 8,003,378 $ 1,788,913 $ 11,831,178 $ - $ 21,623,469 RECONCILIATION TO NET POSITION- GAAP BASIS Capital assets, net 43,068,715 OPEB asset 19,919 Deferred outflows related to PERS 1,050,728 Deferred outflows related to OPEB 12,576 Compensated absences (25,321) Accrued interest payable (257,144) Net pension liability (1,875,454) OPEB liability (83,885) Long-term debt (11,074,542) Bond premiums (1,519,697) Deferred inflows related to PERS (262,769) Deferred inflows related to OPEB (19,886) NET POSITION - GAAP BASIS 50,656,709 $ ---PAGE BREAK--- - 85 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - SEWER FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Charges for services 8,370,000 $ 8,370,000 $ 8,122,190 $ (247,810) $ Miscellaneous 3,270 3,270 9,623 6,353 Interest earnings 271,730 271,730 181,494 (90,236) Total Revenues 8,645,000 8,645,000 8,313,307 (331,693) EXPENDITURES Sewer 4,383,060 4,284,060 4,158,818 125,242 Debt service Principal 3,469,600 3,469,600 3,469,529 71 Interest 999,400 999,400 999,334 66 Contingency 798,660 798,660 - 798,660 Total Expenditures 9,650,720 9,551,720 8,627,681 924,039 REVENUES OVER (UNDER) EXPENDITURES (1,005,720) (906,720) (314,374) 592,346 OTHER FINANCING SOURCES (USES) Transfers out (1,046,200) (1,145,200) (355,115) 790,085 NET CHANGE IN FUND BALANCE (2,051,920) (2,051,920) (669,489) 1,382,431 FUND BALANCE, beginning of year 8,989,000 8,989,000 8,672,867 (316,133) FUND BALANCE, end of year 6,937,080 $ 6,937,080 $ 8,003,378 $ 1,066,298 $ Budget Amounts ---PAGE BREAK--- - 86 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - SEWER SDC FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Licenses and permits 300,000 $ 300,000 $ 129,584 $ (170,416) $ Interest earnings 46,140 46,140 38,904 (7,236) Total Revenues 346,140 346,140 168,488 (177,652) OTHER FINANCING SOURCES (USES) Transfers out (2,107,410) (2,107,410) (80,000) 2,027,410 NET CHANGE IN FUND BALANCE (1,761,270) (1,761,270) 88,488 1,849,758 FUND BALANCE, beginning of year 1,761,270 1,761,270 1,700,425 $ (60,845) FUND BALANCE, end of year - $ - $ 1,788,913 $ 1,788,913 $ Budget Amounts ---PAGE BREAK--- - 87 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SEWER CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Interest earnings 354,250 $ 354,250 $ 264,648 $ (89,602) $ EXPENDITURES Capital outlay 7,830,500 7,830,500 525,420 7,305,080 REVENUES OVER (UNDER) EXPENDITURES (7,476,250) (7,476,250) (260,772) 7,215,829 OTHER FINANCING SOURCES (USES) Transfers in 2,990,600 2,990,600 144,516 (2,846,084) NET CHANGE IN FUND BALANCE (4,485,650) (4,485,650) (116,256) 4,369,745 FUND BALANCE, beginning of year 11,800,520 11,800,520 11,947,434 146,914 FUND BALANCE, end of year 7,314,870 $ 7,314,870 $ 11,831,178 $ 4,516,659 $ Budget Amounts ---PAGE BREAK--- - 88 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF FUND NET POSITION - INTERNAL SERVICE FUNDS JUNE 30, 2020 Information Technology Insurance Total ASSETS Current Assets Cash and investments 434,461 $ 693,679 $ 1,128,140 $ Accounts receivable 9,724 - 9,724 Total Current Assets 444,185 693,679 1,137,864 Noncurrent Assets OPEB Asset 4,389 649 5,038 Total Assets 448,574 694,328 1,142,902 DEFERRED OUTFLOWS Deferred outflows related to PERS 263,282 35,989 299,271 Deferred outflows related to OPEB 2,782 382 3,164 266,064 36,371 302,435 LIABILITIES Current Liabilities Accounts payable 7,448 2,024 9,472 Due to other funds 17,511 2,637 20,148 Accrued compensated absences 19,188 - 19,188 Total Current Liabilities 44,147 4,661 48,808 Noncurrent Liabilities Accrued compensated absences 28,782 - 28,782 Net pension liability 466,059 61,274 527,333 OPEB liability 19,081 2,572 21,653 Total Noncurrent Liabilities 513,922 63,846 577,768 Total Liabilities 558,069 68,507 626,576 DEFERRED INFLOWS Deferred inflows related to PERS 54,205 7,244 61,449 Deferred inflows related to OPEB 4,010 551 4,561 58,215 7,795 66,010 NET POSITION Unrestricted 98,354 $ 654,397 $ 752,751 $ ---PAGE BREAK--- - 89 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2020 Information Technology Insurance Total OPERATING REVENUES Charges for services 1,133,446 $ 755,000 $ 1,888,446 $ Miscellaneous - 2,287 2,287 Total Operating Revenues 1,133,446 757,287 1,890,733 OPERATING EXPENSES Personal services 400,109 60,806 460,915 Materials and services 553,637 650,644 1,204,281 Total Expenses 953,746 711,450 1,665,196 OPERATING INCOME 179,700 45,837 225,537 NONOPERATING REVENUES (EXPENSES) Investment revenue 6,943 7,658 14,601 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 186,643 53,495 240,138 Transfers out (25,840) (3,690) (29,530) Non-cash transfers out (62,939) - (62,939) CHANGE IN NET POSITION 97,864 49,805 147,669 NET POSITION, beginning of year 490 604,592 605,082 NET POSITION, end of year 98,354 $ 654,397 $ 752,751 $ ---PAGE BREAK--- - 90 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2020 Information Technology Insurance Totals CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 1,137,447 $ 757,287 $ 1,894,734 $ Paid to suppliers (948,219) (653,399) (1,601,618) Paid to employees (47,548) (69,153) (116,701) Net Cash Provided by Operating Activities 141,680 34,735 176,415 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Received from (paid to) other funds 17,511 2,637 20,148 Transfers out (25,840) (3,690) (29,530) Net Cash Used in Non-Capital Financing Activities (8,329) (1,053) (9,382) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (62,939) - (62,939) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 6,943 7,658 14,601 Increase in Cash and Investments 77,355 41,340 118,695 CASH AND INVESTMENTS, Beginning of year 357,106 652,339 1,009,445 CASH AND INVESTMENTS, End of year 434,461 $ 693,679 $ 1,128,140 $ RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income 179,700 $ 45,837 $ 225,537 $ Change in assets and liabilities Accounts receivable 4,000 - 4,000 Deferred outflows (113,682) (18,102) (131,784) OPEB asset (1,911) (304) (2,215) Compensated absences payable 4,875 - 4,875 Accounts payable and accrued liabilities 5,528 (2,755) 2,773 Net pension liability 82,147 13,081 95,228 OPEB liability 1,016 162 1,178 Deferred inflows (19,993) (3,184) (23,177) Net Cash Provided by Operating Activities 141,680 $ 34,735 $ 176,415 $ Noncash Transactions Transfer of capital assets (62,939) $ - $ (62,939) $ ---PAGE BREAK--- - 91 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – INFORMATION TECHNOLOGY FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Charges for services 1,124,230 $ 1,124,230 $ 1,133,446 $ 9,216 $ Miscellaneous 6,570 6,570 - (6,570) Interest earnings 8,200 8,200 6,943 (1,257) Total Revenues 1,139,000 1,139,000 1,140,389 1,389 EXPENDITURES Information technology 1,104,720 1,104,720 1,064,233 40,487 Contingency 193,440 172,440 - 172,440 Total Expenditures 1,298,160 1,277,160 1,064,233 212,927 REVENUES OVER (UNDER) EXPENDITURES (159,160) (138,160) 76,156 214,316 OTHER FINANCING SOURCES (USES) Transfers out (4,840) (25,840) (25,840) - NET CHANGE IN FUND BALANCE (164,000) (164,000) 50,316 214,316 FUND BALANCE, beginning of year 334,000 334,000 368,910 34,910 FUND BALANCE, end of year 170,000 $ 170,000 $ 419,226 249,226 $ RECONCILIATION TO NET POSITION - GAAP BASIS OPEB asset 4,389 Deferred outflows related to PERS 263,282 Deferred outflows related to OPEB 2,782 Accrued compensated absences (47,970) Net pension liability (466,059) OPEB liability (19,081) Deferred inflows related to PERS (54,205) Deferred inflows related to OPEB (4,010) NET POSITION, GAAP BASIS 98,354 $ Budget Amounts ---PAGE BREAK--- - 92 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – INSURANCE FUND YEAR ENDED JUNE 30, 2020 Original Final Actual Variance REVENUES Charges for services 755,000 $ 755,000 $ 755,000 $ - $ Miscellaneous 4,490 4,490 2,287 (2,203) Interest earnings 7,510 7,510 7,658 148 Total Revenues 767,000 767,000 764,945 (2,055) EXPENDITURES Insurance 868,340 868,340 719,797 148,543 Contingency 547,970 544,970 - 544,970 Total Expenditures 1,416,310 1,413,310 719,797 693,513 REVENUES OVER (UNDER) EXPENDITURES (649,310) (646,310) 45,148 691,458 OTHER FINANCING SOURCES (USES) Transfers out (690) (3,690) (3,690) - NET CHANGE IN FUND BALANCE (650,000) (650,000) 41,458 691,458 FUND BALANCE, beginning of year 650,000 650,000 647,560 (2,440) FUND BALANCE, end of year - $ - $ 689,018 689,018 $ RECONCILIATION TO NET POSITION - GAAP BASIS OPEB asset 649 Deferred outflows related to PERS 35,989 Deferred outflows related to OPEB 382 Net pension liability (61,274) OPEB liability (2,572) Deferred inflows related to PERS (7,244) Deferred inflows related to OPEB (551) NET POSITION, GAAP BASIS 654,397 $ Budget Amounts ---PAGE BREAK--- STATISTICAL SECTION ---PAGE BREAK--- STATISTICAL SECTION This part of the City of Woodburn’s comprehensive annual financial report presents detailed information as a context for understanding the information in the financial statements, note disclosures, required supplementary information, and other supplementary information says about the City’s overall financial health. CONTENTS Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the city’s most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current level of outstanding debt and the city’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the City’s financial report relates to the services the City provides and the activities it performs. SOURCES: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the relevant year. ---PAGE BREAK--- FINANCIAL TRENDS ---PAGE BREAK--- - 93 - CITY OF WOODBURN, OREGON NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Governmental activities Net investment in capital assets 50,891,390 $ 54,443,478 $ 54,361,481 $ 55,195,632 $ 59,266,063 $ 58,326,049 $ 57,813,459 $ 57,789,283 $ 58,807,325 $ 110,768,630 $ Restricted 9,407,166 9,460,498 10,395,999 11,523,032 8,929,025 9,815,650 10,660,016 11,651,202 13,987,334 29,488,251 Unrestricted 6,157,480 6,455,591 6,938,395 6,224,832 4,583,134 923,456 766,265 1,979,126 2,085,955 (563,627) Total governmental activities net position 66,456,036 $ 70,359,567 $ 71,695,875 $ 72,943,496 $ 72,778,222 $ 69,065,155 $ 69,239,740 $ 71,419,611 $ 74,880,614 $ 139,693,254 $ Business-type activities Net investment in capital assets 33,175,923 $ 31,042,855 $ 31,886,659 $ 19,913,747 $ 21,979,780 $ 23,737,493 $ 37,312,451 $ 42,991,874 $ 43,073,472 $ 46,318,476 $ Restricted for: Debt service 542,268 935,770 3,165,303 18,737,342 16,841,111 16,735,267 16,635,580 17,004,861 17,081,733 17,249,531 Unrestricted 5,619,718 9,227,695 7,204,526 4,666,744 7,163,564 6,909,942 (4,020,472) (6,694,060) (3,417,951) (3,690,855) Total business-type activities net position 39,337,909 $ 41,206,320 $ 42,256,488 $ 43,317,833 $ 45,984,455 $ 47,382,702 $ 49,927,559 $ 53,302,675 $ 56,737,254 $ 59,877,152 $ Primary government Net investment in capital assets 84,067,313 $ 85,486,333 $ 86,248,140 $ 75,109,379 $ 81,245,843 $ 82,063,542 $ 95,125,910 $ 100,781,157 $ 101,880,797 $ 64,450,154 $ Restricted 9,949,434 10,396,268 13,561,302 30,260,374 25,770,136 26,550,917 27,295,596 28,656,063 31,069,067 12,238,720 Unrestricted 11,777,198 15,683,286 14,142,921 10,891,576 11,746,698 7,833,398 (3,254,207) (4,714,934) (1,331,996) 3,127,228 Total primary government net position 105,793,945 $ 111,565,887 $ 113,952,363 $ 116,261,329 $ 118,762,677 $ 116,447,857 $ 119,167,299 $ 124,722,286 $ 131,617,868 $ 79,816,102 $ ---PAGE BREAK--- - 94 - CITY OF WOODBURN, OREGON CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) Expenses 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Governmental activities: General government 2,038,098 $ 2,116,264 $ 2,411,067 $ 2,646,552 $ 3,058,648 $ 5,114,971 $ 2,676,477 $ 2,740,778 $ 1,162,602 $ 4,671,461 $ Public safety 6,175,907 6,733,302 6,389,207 6,608,391 5,662,660 9,231,388 7,805,948 7,573,873 7,687,490 6,982,033 Highways and streets 2,903,846 2,202,753 2,663,020 2,273,271 1,976,022 2,691,040 2,426,489 2,551,662 2,787,782 2,113,284 Culture and recreation 3,413,838 4,019,379 3,270,803 3,530,783 2,784,248 3,481,264 2,980,178 2,799,066 4,226,653 4,139,920 Economic development - - - - - - 829,477 1,139,732 2,023,962 2,025,642 Interest on long-term debt 286,145 257,018 248,109 226,504 204,905 183,342 169,933 108,133 76,949 59,907 Total governmental activities expenses 14,817,834 15,328,716 14,982,206 15,285,501 13,686,483 20,702,005 16,888,502 16,913,244 17,965,438 19,992,247 Business-type activities: Water 2,428,964 2,901,104 2,882,056 2,792,818 2,478,694 3,303,526 2,885,827 3,117,740 3,012,632 2,679,610 Sewer 4,994,266 5,270,139 5,713,504 6,711,162 5,302,994 6,728,773 5,629,532 5,643,125 5,649,231 6,371,730 Total business-type activities expenses 7,423,230 8,171,243 8,595,560 9,503,980 7,781,688 10,032,299 8,515,359 8,760,865 8,661,863 9,051,340 Total primary government expenses 22,241,064 $ 23,499,959 $ 23,577,766 $ 24,789,481 $ 21,468,171 $ 30,734,304 $ 25,403,861 $ 25,674,109 $ 26,627,301 $ 29,043,587 $ Program Revenues Governmental activities: Charges for services: General government 155,099 $ 266,789 $ 733,090 $ 682,238 $ 649,703 $ 978,244 $ 660,502 $ 1,263,142 $ 91,987 $ 243,805 $ Public safety 879,801 874,614 715,743 627,424 716,467 93,443 113,331 120,152 272,432 243,369 Highways and streets 316,744 490,640 106,604 274,205 6,188 22,519 1,104 7,533 945 2,275 Culture and recreation 703,327 689,937 574,513 517,400 571,921 705,415 565,889 557,725 774,081 573,205 Economic development - - - - - - 457,432 403,044 1,307,278 1,579,828 Operating grants and contributions 1,491,298 1,911,075 1,948,383 1,915,475 1,993,925 1,962,709 2,052,681 2,156,971 2,582,883 4,346,664 Capital grants and contributions 540,889 522,817 840,242 885,093 1,286,163 350,449 266,679 502,857 934,723 2,506,331 Total governmental activities program revenues 4,087,158 4,755,872 4,918,575 4,901,835 5,224,367 4,112,779 4,117,618 5,011,424 5,964,329 9,495,477 Business-type activities: Charges for services: Water 3,246,171 3,297,812 3,236,888 3,166,878 3,277,605 3,415,661 3,293,342 3,399,943 3,804,029 3,990,442 Sewer 5,606,523 6,238,103 6,548,215 7,479,643 7,981,658 8,169,544 8,091,754 8,141,127 8,059,526 8,122,190 Capital grants and contributions 1,824,635 437,817 290,930 446,971 310,272 307,152 114,664 438,189 376,165 425,801 Total business-type activities program revenues 10,677,329 9,973,732 10,076,033 11,093,492 11,569,535 11,892,357 11,499,760 11,979,259 12,239,720 12,538,433 Total primary government program revenues 14,764,487 $ 14,729,604 $ 14,994,608 $ 15,995,327 $ 16,793,902 $ 16,005,136 $ 15,617,378 $ 16,990,683 $ 18,204,049 $ 22,033,910 $ ---PAGE BREAK--- - 95 - CITY OF WOODBURN, OREGON CHANGES IN NET POSITION (Continued) LAST TEN FISCAL YEARS (accrual basis of accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net(expense)/revenue Governmental activities (10,730,676) $ (10,572,844) $ (10,063,631) $ (10,383,666) $ (8,462,116) $ (16,589,226) $ (12,770,884) $ (12,151,820) $ (12,001,109) $ (10,498,934) $ Business-type activities 3,254,099 1,802,489 1,480,473 1,589,512 3,787,847 1,860,058 2,984,401 3,218,394 3,577,857 4,091,340 Total primary government net expense (7,476,577) $ (8,770,355) $ (8,583,158) $ (8,794,154) $ (4,674,269) $ (14,729,168) $ (9,786,483) $ (8,933,426) $ (8,423,252) $ (6,407,594) $ General Revenues and Other Changes in Net Position Governmental activities: Property taxes 8,460,151 $ 8,495,199 $ 8,180,539 $ 8,234,481 $ 8,836,939 $ 9,156,725 $ 9,724,889 $ 10,301,565 $ 10,467,041 $ 10,908,076 $ Franchise taxes 1,768,058 1,776,101 1,932,484 1,500,730 1,539,926 1,511,125 1,543,317 1,540,440 1,537,523 1,528,351 Other taxes - - - 454,363 437,339 550,346 547,220 712,127 595,650 491,023 Unrestricted investment earnings - 46,992 122,672 96,347 99,620 105,901 200,736 354,201 632,056 517,897 Intergovernmental 557,619 533,738 660,547 633,530 655,575 649,350 702,990 728,991 831,319 903,481 Miscellaneous 130,113 252,164 170,119 117,872 28,620 163,827 101,908 304,920 120,782 32,117 Gain on sale of capital assets - - (69,877) - 49,948 13,241 25,148 298,208 11,060 Transfers in (out) 181,789 711,000 333,578 663,841 680,212 688,937 650,141 364,299 979,533 1,040,253 Total governmental activities 11,097,730 11,815,194 11,399,939 11,631,287 12,278,231 12,876,159 13,484,442 14,331,691 15,462,112 15,432,258 Business-type activities: Unrestricted investment earnings - 67,709 109,942 125,139 122,988 159,067 283,101 454,022 713,164 622,056 Miscellaneous 24,222 462 66,445 302,251 67,461 68,059 86,136 56,386 60,171 71,002 Gain on sale of capital assets 3,488 5,892 1,300 - - - 3,505 10,613 62,922 - Transfers in (out) (181,789) (711,000) (333,578) (663,841) (680,212) (688,937) (650,141) (364,299) (979,533) (1,040,253) Total business-type activities (154,079) (636,937) (155,891) (236,451) (489,763) (461,811) (277,399) 156,722 (143,276) (347,195) Total primary government 10,943,651 $ 11,178,257 $ 11,244,048 $ 11,394,836 $ 11,788,468 $ 12,414,348 $ 13,207,043 $ 14,488,413 $ 15,318,836 $ 15,085,063 $ Change in Net Position Governmental activities 367,054 $ 1,242,350 $ 1,336,308 $ 1,247,621 $ 3,816,115 $ (3,713,067) $ 713,558 $ 2,179,871 $ 3,461,003 $ 4,933,324 $ Business-type activities 3,100,020 1,165,552 1,324,582 1,353,061 3,298,084 1,398,247 2,707,002 3,375,116 3,434,581 3,744,145 Total primary government 3,467,074 $ 2,407,902 $ 2,660,890 $ 2,600,682 $ 7,114,199 $ (2,314,820) $ 3,420,560 $ 5,554,987 $ 6,895,584 $ 8,677,469 $ ---PAGE BREAK--- - 96 - CITY OF WOODBURN, OREGON FUND BALANCE OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (accrual basis of accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General fund Nonspendable 5,378 $ - $ 1,470 $ 740 $ 1,467 $ 936 $ 3,064 $ 18,230 $ 31,972 $ 23,390 $ Committed - - - - - - - - 1,678,280 - Unassigned 2,440,761 2,744,299 3,280,970 3,577,032 4,159,081 4,889,982 6,249,717 7,472,054 6,246,115 6,812,532 Total general fund 2,446,139 $ 2,744,299 $ 3,282,440 $ 3,577,772 $ 4,160,548 $ 4,890,918 $ 6,252,781 $ 7,490,284 $ 7,956,367 $ 6,835,922 $ All other governmental funds Nonspendable - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,300 $ Restricted 8,889,955 9,414,462 10,206,079 11,348,721 8,092,696 9,091,956 9,984,428 11,013,955 13,387,817 12,493,682 Committed 2,865,678 2,722,572 2,685,427 2,435,919 1,347,789 1,414,631 1,540,863 1,787,763 1,904,955 1,934,257 Total other governmental funds 11,710,516 $ 11,991,402 $ 12,891,506 $ 13,784,640 $ 9,427,247 $ 10,503,769 $ 11,525,291 $ 12,801,718 $ 15,292,772 $ 14,431,239 $ ---PAGE BREAK--- - 97 - CITY OF WOODBURN, OREGON CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (accrual basis of accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenues Taxes and assessments 8,868,881 $ 9,029,638 $ 8,626,652 $ 8,786,364 $ 9,329,720 $ 9,748,024 $ 10,325,164 $ 10,780,981 $ 11,282,658 $ 11,384,659 $ Licenses and permits 1,906,385 2,376,808 2,479,695 2,954,980 3,124,804 2,748,872 2,509,315 3,198,381 3,667,362 3,896,131 Charges for services 588,491 681,414 1,008,368 901,197 1,351,102 1,364,684 1,260,038 1,153,372 1,422,284 930,786 Intergovernmental 2,461,525 2,551,139 2,954,951 2,674,698 3,371,886 2,733,371 2,930,985 3,178,254 3,513,833 6,420,257 Fines & forfeitures 736,046 734,377 589,574 571,831 673,377 426,867 420,305 395,164 343,790 352,400 Miscellaneous 458,281 542,192 316,536 540,782 454,140 683,371 562,957 784,799 1,193,261 1,306,767 Total revenues 15,019,609 15,915,568 15,975,776 16,429,852 18,305,029 17,705,189 18,008,764 19,490,951 21,423,188 24,291,000 Expenditures Current General government 1,639,856 1,507,850 1,536,687 1,641,493 3,164,615 3,790,736 3,257,197 3,447,310 1,361,472 4,397,582 Public safety 5,876,604 6,426,635 6,328,417 6,569,367 6,794,410 6,598,236 6,861,768 6,813,292 7,206,649 2,075,418 Highways and streets 1,263,251 1,127,439 990,756 1,003,547 2,005,328 1,777,030 1,529,569 1,808,443 1,994,020 7,574,867 Culture and recreation 3,839,857 3,818,454 3,589,437 3,845,430 4,280,701 2,874,788 2,997,742 3,063,827 3,883,640 1,654,523 Economic development - - - - - - - - 1,965,382 4,028,407 Capital outlay 2,475,313 1,723,398 1,415,390 1,379,516 5,073,930 277,571 473,208 1,309,506 6,578,234 5,540,458 Debt service Principal 528,799 507,785 526,296 560,172 584,429 436,479 400,399 456,675 516,000 1,303,000 Interest 290,552 268,897 249,237 228,861 206,832 185,327 169,937 117,094 70,208 174,881 Total expenditures 15,914,232 15,380,458 14,636,220 15,228,386 22,110,245 15,940,167 15,689,820 17,016,147 23,575,605 26,749,136 Excess of revenues over (under) expenditures (894,623) 535,110 1,339,556 1,201,466 (3,805,216) 1,765,022 2,318,944 2,474,804 (2,152,417) (2,458,136) Other financing sources (uses) Proceeds from sale of capital assets - - - - - - 19,861 35,415 308,894 22,179 Proceeds from issuance of debt - - - - - - - - 4,600,000 - Refunding bonds issued - - - - - - - 3,749,000 - - Payment to refunded bond escrow agent - - - - - - - (3,699,114) - - Transfers in 850,150 1,029,674 1,279,532 1,430,985 853,858 294,248 419,236 829,268 2,658,488 2,943,348 Transfers out (1,201,116) (985,738) (1,180,842) (1,443,985) (823,259) (252,378) (374,656) (875,443) (2,457,828) (2,489,369) Total other financing sources (uses) (350,966) 43,936 98,690 (13,000) 30,599 41,870 64,441 39,126 5,109,554 476,158 Net change in fund balances (1,245,589) 579,046 1,438,246 1,188,466 (3,774,617) 1,806,892 2,383,385 2,513,930 2,957,137 (1,981,978) Fund balances at beginning of year 15,402,244 14,156,655 14,735,700 16,173,946 17,362,412 13,587,795 15,394,687 17,778,072 20,292,002 23,249,139 Fund balances at end of year 14,156,655 $ 14,735,701 $ 16,173,946 $ 17,362,412 $ 13,587,795 $ 15,394,687 $ 17,778,072 $ 20,292,002 $ 23,249,139 $ 21,267,161 $ Debt service as a percentage of noncapital expenditures 6.1% 5.7% 5.9% 5.7% 4.6% 4.0% 3.7% 3.7% 3.4% 7.0% ---PAGE BREAK--- REVENUE CAPACITY ---PAGE BREAK--- - 98 - CITY OF WOODBURN, OREGON MARKET AND ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Fiscal Year Ended June 30, Residential Property (AV) Farm Property (AV) Commercial Property (AV) Industrial Property (AV) Personal Property (AV) Utility Property (AV) Total Measure 50 Assessed Value Total Direct Tax Rate/ Thousand Measure 5 Taxable RMV Real Market Value Assessed Value as a Percentage of Actual Value 2011 $ 745,414,890 $ 807,030 $ 292,392,290 $ 196,092,960 $ 49,720,804 $ 34,999,170 $ 1,319,427,144 6.0534 $ $ 1,699,781,395 $ 1,945,383,324 67.824% 2012 742,098,060 831,230 305,271,528 197,797,630 51,844,705 35,186,720 1,333,029,873 6.0534 1,604,777,765 1,850,222,994 72.047% 2013 703,075,530 857,650 313,388,630 190,486,580 48,092,497 35,977,800 1,291,878,687 6.0534 1,512,407,943 1,756,070,733 73.566% 2014 702,053,360 868,480 374,295,240 143,111,800 49,539,001 34,316,630 1,304,184,511 6.0534 1,503,013,174 1,751,863,757 74.446% 2015 779,859,386 476,270 376,129,580 148,705,150 53,477,977 38,981,380 1,397,629,743 6.0534 1,652,955,312 1,925,612,145 72.581% 2016 830,915,110 878,310 387,086,020 149,051,530 56,599,979 31,207,820 1,455,738,769 6.0534 1,778,119,364 2,056,463,271 70.788% 2017 868,154,380 883,320 404,525,450 159,818,080 57,908,292 33,592,820 1,524,882,342 6.0534 1,920,324,583 2,207,659,188 69.072% 2018 902,999,410 689,300 415,565,670 148,807,610 62,107,308 42,113,077 1,572,282,375 6.0534 2,136,350,540 2,429,890,960 64.706% 2019 932,416,020 942,330 432,522,080 149,454,580 63,865,513 52,194,300 1,631,394,823 6.0534 2,347,935,303 2,669,251,668 61.118% 2020 973,117,650 1,842,700 451,512,140 151,172,270 69,785,848 53,712,000 1,701,142,608 6.0534 2,582,277,844 2,921,850,774 58.221% Source: Marion County Assessor's Office (Schedule 5) ---PAGE BREAK--- - 99 - CITY OF WOODBURN, OREGON DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Fiscal Year Ended June 30 City of Woodburn (includes URA) Marion County Marion Soil & Water Marion County Extension and 4-H Woodburn Fire District Woodburn School District Willamette Regional ESD Chemeketa Community College Chemeketa Regional Library Total 2011 6.77 2.95 0.05 - 1.79 6.63 0.29 0.78 0.08 19.33 2012 6.79 2.94 0.05 - 1.78 6.67 0.29 0.86 0.08 19.46 2013 6.84 2.94 0.05 - 1.69 6.83 0.29 0.88 0.08 19.59 2014 6.81 2.95 0.05 - 1.72 6.81 0.29 0.84 0.08 19.54 2015 6.73 2.95 0.05 - 1.73 6.34 0.29 0.88 0.08 19.04 2016 6.66 2.95 0.05 0.05 1.81 6.66 0.29 0.90 0.08 19.45 2017 6.66 2.95 0.05 0.05 1.75 6.76 0.29 0.89 0.08 19.46 2018 6.69 2.94 0.05 0.05 1.71 6.79 0.29 0.88 0.08 19.48 2019 6.71 2.94 0.04 0.05 1.73 6.77 0.29 0.88 0.08 19.48 2020 6.68 2.94 0.05 0.05 2.09 6.84 0.29 0.87 0.08 19.88 Source: Marion County Assessor's Office Tax rates expressed in dollars and cents per $1,000 of assessed value of taxable property ---PAGE BREAK--- - 100 - CITY OF WOODBURN, OREGON PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Taxpayer Taxable Assessed Value Rank Percentage of Total Taxable Assessed Value Taxable Assessed Value Rank Percentage of Total Taxable Assessed Value WinCo Foods LLC 74,842,198 $ 1 3.19% 74,057,898 $ 1 3.82% Woodburn Premium Outlets LLC 70,264,829 2 2.99% Food Services of America Inc 29,901,360 3 1.27% 26,211,640 3 1.35% Wal-Mart Real Estate Business TR 17,791,840 5 0.76% 13,888,940 5 0.72% Hardware Wholesalers Inc 17,068,670 6 0.73% 14,293,890 4 0.74% Portland General Electric Co 15,572,783 4 0.66% 13,489,540 6 0.70% Cascade Meadow LLC 14,702,400 7 0.63% 11,268,200 7 0.58% Crown 2 Development LLC 13,144,580 8 0.56% 10,074,260 8 0.52% Northwest Natural Gas Co 13,028,000 9 0.55% 9,524,600 10 0.49% Pacific Realty Associates LP 10,637,480 10 0.45% Craig Realty Group Woodburn 49,024,540 2 2.53% Mid-Valley Plaza LLC 9,562,330 9 0.49% Subtotal 276,954,140 11.80% 231,395,838 11.94% All Other 2,070,981,163 88.20% 1,706,218,941 88.05% Totals 2,347,935,303 $ 100.0% 1,937,614,779 $ 100.0% Source: Marion County Assessor's Office 2011 2020 ---PAGE BREAK--- - 101 - CITY OF WOODBURN, OREGON PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Ended June 30 Taxes Levied by Assessor Tax Collections Percent of Levy Delinquent Taxes Collected Total Tax Collections Percent of Tax Levy 2011 8,688,708 8,094,990 93.17% 311,370 8,406,360 96.75% 2012 8,659,913 8,099,206 93.53% 301,668 8,400,874 97.01% 2013 8,369,810 7,835,630 93.62% 308,748 8,144,378 97.31% 2014 8,410,177 7,924,202 94.22% 320,006 8,244,208 98.03% 2015 9,054,234 8,553,359 94.47% 276,179 8,829,538 97.52% 2016 9,421,624 8,943,387 94.92% 245,398 9,188,785 97.53% 2017 9,958,340 9,456,995 94.97% 254,254 9,711,249 97.52% 2018 10,323,495 9,832,811 95.25% 222,045 10,054,856 97.40% 2019 10,757,144 10,243,398 95.22% 443,608 10,687,006 99.35% 2020 11,214,218 10,624,844 94.74% 228,211 10,853,055 96.78% Source: Marion County Assessor's Office and City Records Collected within the Fiscal Year of the Levy Total Collections to Date ---PAGE BREAK--- DEBT CAPACITY ---PAGE BREAK--- - 102 - CITY OF WOODBURN, OREGON RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Fiscal Year Full Faith & Credit Bonds Loans Bonds Loans Total Outstanding Debt Percentage of Personal Income Population Debt Per Capita 2011 5,655,000 1,086,234 6,778,648 25,680,870 39,200,752 3.78% 24,085 1,628 2012 5,365,000 868,449 39,810,720 5,910,647 51,954,816 5.06% 24,090 2,157 2013 5,065,000 642,154 37,674,655 5,559,833 48,941,642 4.69% 24,090 2,032 2014 4,745,000 401,982 35,126,768 5,194,240 45,467,990 4.26% 24,330 1,869 2015 4,410,000 152,553 32,082,220 4,813,265 41,458,038 3.88% 24,455 1,695 2016 4,060,000 66,074 29,302,005 4,416,251 37,844,330 3.40% 24,670 1,534 2017 3,690,000 35,675 26,384,767 4,002,523 34,112,965 3.19% 24,795 1,376 2018 3,328,000 - 22,893,978 3,571,377 29,793,355 2.73% 24,685 1,207 2019 2,812,000 4,600,000 14,544,072 7,614,000 29,570,072 2.71% 24,685 1,198 2020 2,301,000 3,808,000 11,074,543 6,192,000 23,375,543 2.01% 25,135 944 Presented net of original issuance discount and premiums Personal income is disclosed on pg 110 Source: Portland State University Population Research Center Governmental Activities Business-Type Activities ---PAGE BREAK--- - 103 - CITY OF WOODBURN, OREGON RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS 2011 24,085 1,319,427,144 5,655,000 78,035 5,576,965 0.42% 235 2012 24,090 1,333,029,873 5,365,000 61,397 5,303,603 0.40% 223 2013 24,090 1,291,878,687 5,065,000 27,570 5,037,430 0.39% 210 2014 24,330 1,304,184,511 4,745,000 55,033 4,689,967 0.36% 195 2015 24,455 1,397,629,743 4,410,000 50,771 4,359,229 0.31% 180 2016 24,670 1,455,738,769 4,060,000 25,117 4,034,883 0.28% 165 2017 24,795 1,524,882,342 3,690,000 1,758 3,688,242 0.24% 149 2018 24,685 1,572,282,375 3,328,000 22,777 3,305,223 0.21% 135 2019 24,760 1,631,394,823 2,812,000 19,373 2,792,627 0.17% 114 2020 25,135 1,701,142,608 2,301,000 32,604 2,268,396 0.13% 92 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements Source: Portland State University Population Research Center Marion County Assessor's Office Ratio of Net Bonded Debt to Assessed Value Per Capita Full Faith & Credit Bond Less Debt Service Fund Net Bonded Debt Fiscal Year Ended June 30 Population(1) Assessed Value(2) ---PAGE BREAK--- - 104 - CITY OF WOODBURN, OREGON DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVIITES DEBT JUNE 30, 2020 Percent City's Total Within Pro Rata Net Debt City Share Direct: City of Woodburn 3,501,000 $ * 100% 3,501,000 $ Overlapping: Chemeketa Community College 57,087,534 4.13% 2,358,743 Marion County 13,892,831 5.98% 830,541 Marion Cty SD 103 (Woodburn) 70,415,000 86.00% 60,558,590 Willamette ESD 7,700,978 3.76% 289,326 Woodburn RFPD 6 770,000 72.31% 556,779 Total overlapping 149,866,343 64,593,979 TOTAL 153,367,343 $ 68,094,979 $ Source: Debt Management Division, Oregon State Treasury Excluding Revenue Bonds and Urban Renewal Loan Jurisdiction ---PAGE BREAK--- - 105 - CITY OF WOODBURN, OREGON LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Debt Limit 58,361,500 $ 55,506,690 $ 52,682,122 $ 52,555,913 $ 57,768,364 $ 61,693,898 $ 66,229,776 $ 72,896,729 $ 80,077,550 $ 87,655,523 $ Total net debt applicable to limit 5,655,000 5,365,000 5,065,000 4,745,000 4,410,000 4,060,000 3,690,000 3,328,000 2,812,000 2,301,000 Legal debt margin* 52,706,500 $ 50,141,690 $ 47,617,122 $ 47,810,913 $ 53,358,364 $ 57,633,898 $ 62,539,776 $ 69,568,729 $ 77,265,550 $ 85,354,523 $ Total net debt applicable to the limit as a percentage of debt limit 9.69% 9.67% 9.61% 9.03% 7.63% 6.58% 5.57% 4.57% 3.51% 2.63% *ORS 287.004 provides a debt limit of 3% of the true cash value (market) of all taxable property within the City boundaries. The legal debt margin has been calculated in accordance with the provisions of ORS 287.004. ---PAGE BREAK--- - 106 - CITY OF WOODBURN, OREGON PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS Customer Water Charges Less: Operating Net Available Coverage Sewer Charges Less: Operating Net Available Coverage Fiscal Year Accounts and Other Expenses Revenue Ratio Principal Interest and Other Expenses Revenue Ratio Principal Interest 2011 6,700 3,383,935 1,687,072 1,696,863 147% 576,106 581,241 6,258,700 2,645,448 3,613,252 154% 1,508,795 831,453 2012 6,560 3,538,655 1,836,024 1,702,631 147% 596,127 559,127 6,449,356 3,254,365 3,194,991 230% 1,125,000 264,306 2013 6,688 3,378,356 1,885,250 1,493,106 129% 621,879 536,114 6,743,789 2,704,917 4,038,872 137% 1,865,000 1,085,663 2014 6,843 3,642,963 1,980,775 1,662,188 143% 648,318 511,310 7,745,069 3,054,415 4,690,654 142% 2,265,153 1,044,559 2015 6,770 3,498,255 2,003,865 1,494,390 129% 670,523 485,175 8,227,617 3,350,879 4,876,738 131% 2,755,000 972,713 2016 6,843 3,610,982 2,057,945 1,553,037 134% 698,544 457,554 8,389,017 3,679,317 4,709,700 139% 2,478,685 901,378 2017 6,942 3,450,925 2,159,366 1,291,559 112% 727,319 428,778 8,328,364 3,258,739 5,069,625 143% 2,603,647 930,166 2018 7,116 3,746,609 2,306,840 1,439,769 125% 756,935 398,503 8,553,805 3,475,568 5,078,237 131% 3,165,000 724,563 2019 7,024 4,202,849 2,559,996 1,642,853 142% 1,016,000 142,066 8,826,289 3,755,779 5,070,510 119% 3,615,000 629,620 2020 7,070 4,445,819 2,429,005 2,016,814 124% 1,422,000 202,948 8,746,440 3,372,360 5,374,080 120% 3,469,529 999,334 City of Woodburn Financial System City of Woodburn Debt Service Schedules **Debt service excludes principal and interest on refunded debt Water Revenue Bonds Debt Service Sewer Revenue Bonds Debt Service ---PAGE BREAK--- DEMOGRAPHIC AND ECONOMIC INFORMATION ---PAGE BREAK--- - 107 - CITY OF WOODBURN, OREGON DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year Population Total personal income (in thousands) Per capita personal income Median age Unemployment rate School Enrollment K-12 2011 24,085 1,037,894,905 43,093 33.3 10.3% 5,113 2012 24,090 1,027,679,400 42,660 32.5 9.7% 5,160 2013 24,090 1,043,843,790 43,331 31.9 8.7% 5,273 2014 24,330 1,067,576,070 43,879 33.5 7.3% 5,342 2015 24,455 1,067,852,030 43,666 33.7 6.1% 5,390 2016 24,670 1,113,406,440 45,132 33.5 5.3% 5,604 2017 24,795 1,068,490,935 43,093 33.6 4.5% 5,604 2018 24,685 1,091,768,180 44,228 33.4 4.0% 5,544 2019 24,760 1,164,759,920 47,042 32.9 4.2% 5,544 2020 25,135 1,182,400,670 47,042 32.9 4.2% 5,628 Source: Portland State University Population Research Center United States Census Bureau American Community Survey 5-year Estimates Annual average (Source: State of Oregon Employment Department) Woodburn School District: Oregon Average Daily Membership (ADM) Annual Report ---PAGE BREAK--- - 108 - CITY OF WOODBURN, OREGON PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Employer Employees Rank Percentage of total city employment Employees Rank Percentage of total city employment Woodburn School District 650-700 1 6.04% 750-800 1 9.03% Winco Foods 550-600 2 5.15% 450-500 2 5.54% Food Services of America 500-550 3 4.70% 450-500 3 5.54% Bruce Packing Co., Inc. 350-400 4 3.36% 150-200 8 2.04% Wal Mart Associates Inc 250-300 6 2.46% 300-350 4 3.79% Fleetwood Homes Inc. 200-250 7 2.01% 50-100 15 0.87% City of Woodburn 150-200 8 1.57% 200-250 6 2.62% Kerr Contractors Oregon Inc. 150-200 9 1.57% 100-150 9 1.46% Nike Retail Services, Inc. 150-200 10 1.57% 50-100 16 0.87% Do It Best Corp 100-150 12 1.12% 50-100 17 0.87% Al's Garden Centers & Greenhouses 100-150 13 1.12% 100-150 10 1.46% Oregon Child Development Coalition 100-150 14 1.12% 100-150 11 1.46% Fjord LLC 100-150 15 1.12% - - Safeway Stores, Inc. 100-150 16 1.12% 100-150 12 1.46% Dominguez Labor Contractor Inc 100-150 17 1.12% - - Salud Medical Center 100-150 18 1.12% 100-150 13 1.46% Wave 100-150 19 1.12% 25-50 28 0.44% Universal Forest Products Woodburn LLC 100-150 20 1.12% 100-150 14 1.46% Woodburn Health Center 50-100 21 0.67% 50-100 18 0.87% Gem Equipment of Oregon, Inc. 50-100 23 0.67% 50-100 19 0.87% Country Meadows Village LLC 50-100 25 0.67% 50-100 20 0.87% The North Face 50-100 26 0.67% - - Oregon Family Labor LLC 50-100 27 0.67% - - Woodburn Mega Foods 50-100 28 0.67% 50-100 21 0.87% French Prairie Nursing 50-100 29 0.67% - - Speciality Polymers Inc 50-100 30 0.67% 25-50 29 0.44% Triplett Wellman Inc. 50-100 31 0.67% 25-50 30 0.44% Rameriz FLC Inc 50-100 33 0.67% - - United Pacific Forest Products 50-100 34 0.67% 25-50 31 0.44% Wolfers Heathing and Air Conditioning 50-100 35 0.67% 25-50 32 0.44% Patrick Industries Oregon Division 50-100 36 0.67% 25-50 33 0.44% Townsend Farms, Inc 50-100 37 0.67% - - Truss T Structures Inc 50-100 38 0.67% 25-50 34 0.44% Woodburn- Denny's LLC 50-100 39 0.67% 25-50 35 0.44% Red Robiun Gourmet Burgers & Brews 50-100 40 0.67% - - TJX Co Inc. 50-100 41 0.67% - - Pacific Farm Labor Corp 25-50 42 0.34% - - United Disposal Service Inc 25-50 43 0.34% 50-100 22 0.87% Cascade Park Retirement Center 25-50 44 0.34% 50-100 23 0.87% Greentree III Inc 25-50 45 0.34% - - Tree Top Inc 25-50 46 0.34% 25-50 36 0.44% Woodburn Ambulance Services Inc. 25-50 47 0.34% 25-50 37 0.44% Adidas America Inc 25-50 48 0.34% - - Darigold Inc 25-50 49 0.34% - - Direct Labor Inc 25-50 50 0.34% 7 3.79% Subtotal 6,039 54.05% 4,589 53.50% All Other 5,135 45.95% 3,989 46.49% Total 11,174 100.0% 8,578 100.0% 2020 2010 Source: City of Woodburn Economic Development Department and Oregon Employment Department ---PAGE BREAK--- OPERATING INFORMATION ---PAGE BREAK--- - 109 - CITY OF WOODBURN, OREGON FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS Budgeted 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Function General government 18.9 18.9 20.2 21.5 21.5 20.9 20.9 21.7 23.1 23.1 24.5 Public safety 40.5 40.5 40.0 39.6 41.1 42.6 42.7 43.6 43.6 43.6 45.8 Highways and streets 28.9 28.9 15.0 14.0 14.0 11.8 12.8 12.8 13.0 14 14 Culture and recreation 48.1 48.1 42.0 45.8 49.9 50.1 51.0 51.2 51.7 57.8 58.3 Economic development - - - - - 1.0 0.5 1.0 1.0 0.9 0.9 Sewer 16.0 16.0 15.0 15.0 15.0 15.0 14.0 14.0 14.0 14 14 Water 9.0 9.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 10.5 10.5 Total 161.3 161.3 143.2 146.8 152.5 152.4 152.9 155.3 157.4 163.9 168.0 Source: Annual Adopted Budget Book and City Records Actual ---PAGE BREAK--- - 110 - CITY OF WOODBURN, OREGON OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function Police Police calls 20,431 18,570 18,127 18,145 17,062 14,744 14,934 15,679 14,848 * Authorized staffing 32 32 32 32 32 34 34 34 35 Arrests 1,869 1,752 1,449 1,777 1,441 1,003 1,060 989 956 * Offenses 2,549 3,231 2,757 3,212 3,119 2,871 3,408 3,534 2,952 * Culture and recreation Park Acreage 103 110 110 110 110 110 128 128 128 * Library attendance 193,681 178,203 150,127 138,607 132,575 135,317 125,153 114,987 116,223 * Aquatics attendance 88,835 127,663 139,248 144,459 148,885 144,810 140,834 164,646 170,415 * Sports, programs, and event attendance 11,325 8,789 8,405 12,459 12,200 29,424 30,578 32,701 36,521 * After school club 26,645 0 0 0 0 0 0 0 0 * Public transportation Fixed route rides 31,285 33,877 47,454 34,222 34,869 32,684 25,533 24,786 22,374 * Dial-A-Ride trips 7,441 6,456 5,622 5,097 11,842 6,221 6,224 6,952 6,696 * Out of town medical rides 1,615 1,630 1,742 1,972 2,441 1,321 1,473 1,445 2,368 * Community development Building permits issued 179 186 263 279 230 386 171 226 160 * Water Production capacity 2 mgd 2 mgd 2mgd 2mgd 2 mgd 2mgd 2mgd 2mgd 2mgd 2mgd Customers served 6,700 6,560 6,688 6,843 6,770 6,843 6,942 7,116 7,315 * Wastewater Average daily treatment 2-3 mgd 2-3 mgd 2-3 mgd 2-3 mgd 2-3 mgd 2-3 mgd 2-3 mgd 2-3 mgd 2-3 mgd 2-3 mgd *Information unavailable at this time Source: FY 2019-20 Budget: City Statistics - Services ---PAGE BREAK--- - 111 - CITY OF WOODBURN, OREGON CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function Public Safety Police: Stations 1 1 1 1 1 1 1 1 1 1 Highways and streets Streets (center lane miles) 64 64 64 64 64 64 64 65 65 65 Culture and recreation Parks acreage 128 128 128 128 128 128 128 128 128 128 Swimming pools 1 1 1 1 1 1 1 1 1 1 Tennis courts 1 1 1 1 1 1 1 1 1 1 Community centers 0 0 0 0 0 0 0 0 0 0 Sewer Number of connections 5714 6182 6230 6317 6414 6479 6503 6558 6558 6642 Maximum daily treatment capacity 16 16 16 16 16 16 16 16 16 16 (millions of gallons) 1There are no traffic signals on city-owned streets, only on county and state roads. Street lights are owned and maintained by PGE Source: City Departments ---PAGE BREAK--- OTHER INFORMATION ---PAGE BREAK--- - 112 - CITY OF WOODBURN, OREGON WATER SYSTEM COVERAGE CALCULATION LAST TEN FISCAL YEARS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Customer Accounts 3,673 3,893 4,280 4,426 4,844 5,393 5,950 6,579 6,760 6,617 Revenues: Charges for Services 3,156,359 $ 3,217,518 $ 3,236,888 $ 3,166,879 $ 3,277,605 $ 3,415,661 $ 3,293,342 $ 3,399,943 $ 3,804,029 $ 3,990,472 $ Miscellaneous 35,554 55,010 58,454 303,593 60,055 67,290 58,922 79,062 120,234 61,379 Interest 1,977 1,862 3,827 7,498 9,078 12,425 22,231 39,618 62,422 59,579 SDC 190,045 264,265 79,187 164,993 151,517 115,606 76,430 227,986 216,164 334,389 Total Gross Revenues 3,383,935 3,538,655 3,378,356 3,642,963 3,498,255 3,610,982 3,450,925 3,746,609 4,202,849 4,445,819 Operating Expenditures Personal Services 1,090,996 1,195,296 1,287,000 1,244,302 1,168,912 1,172,688 1,284,183 1,382,962 1,349,044 1,463,652 Materials & Services 596,076 640,727 598,109 736,473 834,953 885,257 875,184 923,878 1,210,952 760,029 Total Operating Expenses 1,687,072 1,836,024 1,885,109 1,980,775 2,003,865 2,057,945 2,159,367 2,306,840 2,559,996 2,223,681 Water Fund Balance, End of Year 3,634,979 $ 4,182,194 $ 4,517,447 $ 5,020,007 $ 5,358,699 $ 5,755,638 $ 3,473,585 $ 3,757,916 $ 3,958,373 $ 4,758,511 $ Net Revenues 1,696,863 1,702,632 1,493,247 1,662,188 1,494,390 1,553,037 1,291,558 1,439,769 1,642,853 2,222,138 Total Debt Service 1,157,346 1,155,416 1,157,994 1,159,628 1,155,698 1,156,098 1,156,097 1,155,438 1,158,065 1,422,000 Debt Service Coverage 147% 147% 129% 143% 129% 134% 112% 125% 142% 156% ---PAGE BREAK--- - 113 - CITY OF WOODBURN, OREGON MAJOR WATER SYSTEM CUSTOMERS JUNE 30, 2020 # Customer Name Industry 2020 % of Total Charges 1 SPECIALTY POLYMER Industrial 74,713 $ 1.9% 2 CASCADE MEADOWS APARTMENTS Multi Family 54,901 1.4% 3 AMERICOLD LOGISTICS Commercial 52,429 1.3% 4 STONEHEDGE COURT Multi Family 50,936 1.3% 5 WOODBURN PREMIUM OUTLETS, LLC Commercial 42,664 1.1% 6 HARVARD MEADOWS Multi Family 31,258 0.8% 7 WOODBURN WEST MOBILE ESTATES Multi Family 27,888 0.7% 8 MARION CO HOUSING AUTHORITY Multi Family 27,559 0.7% 9 COUNTRY MEADOWS VILLAGE Multi Family 22,812 0.6% 10 TOWNSEND FARMS INC Industrial 21,308 0.5% Subtotal 406,468 $ Total Water Charges 3,927,535 $ ---PAGE BREAK--- - 114 - CITY OF WOODBURN, OREGON SEWER SYSTEM COVERAGE CALCULATION LAST TEN FISCAL YEARS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 User Fees 5,544,381 $ 6,088,590 $ 6,488,127 $ 7,416,117 $ 7,910,674 $ 8,098,602 $ 8,019,478 $ 8,071,234 $ 7,993,348 $ 8,068,459 $ SDCs 12,301 166,529 174,123 235,714 214,407 173,376 117,124 221,257 199,446 129,584 Interest 3,982 44,633 86,133 97,547 95,415 124,753 226,174 361,418 564,458 485,044 Miscellaneous 122,698 149,264 69,378 66,220 71,114 71,711 99,491 69,900 69,037 63,354 Total Revenue 5,683,362 6,449,016 6,817,762 7,815,598 8,291,610 8,468,441 8,462,266 8,723,809 8,826,289 8,746,441 Operating Expenses1 3,485,336 2,379,286 2,864,917 3,148,249 3,467,717 3,796,244 3,348,739 3,505,314 3,755,779 3,131,761 Net Revenues 2,198,025 $ 4,069,730 $ 3,952,845 $ 4,667,349 $ 4,823,893 $ 4,672,197 $ 5,113,528 $ 5,218,495 $ 5,070,510 $ 5,614,680 $ Net Revenues less SDCs 2,185,725 $ 3,903,201 $ 3,778,722 $ 4,431,634 $ 4,609,486 $ 4,498,821 $ 4,996,404 $ 4,997,238 $ 4,871,064 $ 5,485,096 $ DEQ Loan R98411 306,177 $ 157,312 $ - $ - $ - $ - $ - $ - $ - $ - $ DEQ Loan R98412 1,990,887 954,580 - - - - - - - - G98002 43,185 42,021 - - - - - - - - 2011 Revenue Bonds Series A & B 2,950,663 3,309,713 3,727,713 3,380,063 3,533,813 3,889,563 4,244,613 4,468,863 Total Debt Service 2,340,248 $ 1,153,913 $ 2,950,663 $ 3,309,713 $ 3,727,713 $ 3,380,063 $ 3,533,813 $ 3,889,563 $ 4,244,613 $ 4,468,863 $ Debt Service Coverage 94% 353% 134% 141% 129% 138% 145% 134% 119% 126% Debt Service Coverage (w/o SDC) 93% 338% 128% 134% 124% 133% 141% 128% 115% 123% 1 Operation expenses do not include depreciation, debt service or equipment replacement transfer ---PAGE BREAK--- - 115 - CITY OF WOODBURN, OREGON MAJOR SEWER SYSTEM CUSTOMERS JUNE 30, 2020 # Customer Name Account Type 2020 % of Total Charges 1 OREGON YOUTH AUTHORITY (MACLAREN) Commercial 253,073 3.1% 2 STONEHEDGE COURT Multi Family 237,513 2.9% 3 TREETOP Industrial 206,542 2.6% 4 WOODBURN PREMIUM OUTLETS Commercial 136,780 1.7% 5 CASCADE MEADOWS APARTMENTS Multi Family 134,876 1.7% 6 HARVARD MEADOWS Multi Family 91,325 1.1% 7 CASCADE PARK RETIREMENT Multi Family 88,770 1.1% 8 MARION COUNTY HOUSING AUTHORITY Multi Family 84,705 1.0% 9 COUNTRY MEADOWS VILLAGE Multi Family 78,425 1.0% 10 NUEVO AMANACER Multi Family 77,764 1.0% Subtotal 1,389,773 Total Sewer Charges 8,068,459 ---PAGE BREAK--- COMPLIANCE SECTION ---PAGE BREAK--- - 116 - 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, 2020, and have issued our report thereon dated November 25, 2020. 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 expenditures in excess of appropriations as noted in the footnotes to the financial statements. ---PAGE BREAK--- - 117 - Internal Control Over Financial Reporting 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. Restriction on Use This report is intended solely for the information and use of the 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: Katherine R. Wilson, A Shareholder November 25, 2020