Document Woodburn_doc_9d27978fed

Annual Comprehensive Financial Report For the Year Ended June 30, 2021 City of Woodburn ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2021 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 Certificate of Achievement for Excellence in Financial Reporting vi List of Officials vii 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 11-12 Fund Financial Statements Balance Sheet - Governmental Funds 13 Reconciliation of Balance Sheet - Governmental Funds to the Statement of Net Position 14 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 15 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds to the Statement of Activities 16 Statement of Net Position - Proprietary Funds 17 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds 18 Statement of Cash Flows - Proprietary Funds 19-20 Notes to Basic Financial Statements 21-50 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund 51 Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset) – Oregon Public Employee’s Retirement System 52 Schedule of the City’s Contributions – Oregon Public Employee’s Retirement System 53 Schedule of Changes in Total Other Post-Employment Benefits Liability and Related Ratios - Implicit Rate Subsidy 54 Schedule of the City’s Proportionate Share of the Net OPEB Liability (Asset) – Oregon Public Employee’s Retirement System Retiree Health Insurance Account 55 Schedule of the City’s Contributions – Oregon Public Employee’s Retirement System Retiree Health Insurance Account 56 Notes to the Required Supplementary Information 57-58 ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page FINANCIAL SECTION (Continued) SUPPLEMENTARY INFORMATION Governmental Funds Combining Balance Sheet – Nonmajor Funds 59-62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Funds 63-66 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Street Fund 67 Transit Fund 68 Building Inspection Fund 69 Asset Forfeiture Fund 70 Housing Rehabilitation Fund 71 Lavelle Black Trust Fund 72 Urban Renewal Fund 73 General Capital Construction Fund 74 Special Assessment Fund 75 Street & Storm Capital Construction Fund 76 Parks SDC Fund 77 Street SDC Fund 78 Storm SDC Fund 79 Equipment Replacement Fund 80 GO Debt Service Fund 81 Proprietary Funds Enterprise Funds Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP Basis) and Actual Water Operations Combining 82 Water Fund 83 Water SDC Fund 84 Water Capital Construction Fund 85 Sewer Operations Combining 86 Sewer Fund 87 Sewer SDC Fund 88 Sewer Capital Construction Fund 89 Internal Services Funds Combining Statement of Fund Net Position 90 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 91 Combining Statement of Cash Flows 92 Schedules of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) Budget and Actual Information Technology Fund 93 Insurance Fund 94 STATISTICAL SECTION CONTENTS 95 FINANCIAL TRENDS Net Position by Component 96 Changes in Net Position 97-98 Fund Balance of Governmental Funds 99 Changes in Fund Balances of Governmental Funds 100 ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page STATISTICAL SECTION (Continued) REVENUE CAPACITY Market and Assessed Value of Taxable Property 101 Direct and Overlapping Governments 102 Principal Property Taxpayers 103 Property Tax Levies and Collections 104 DEBT CAPACITY Ratios of Outstanding Debt by Type 105 Ratios of General Bonded Debt Outstanding 106 Direct and Overlapping Governmental Activities Debt 107 Legal Debt Margin 108 Pledged Revenue Coverage 109 DEMOGRAPHIC AND ECONOMIC INFORMATION Demographic and Economic Statistics 110 Principal Employers 111 OPERATING INFORMATION Full Time Equivalent Employees by Function 112 Operating Indicators by Function 113 Capital Asset Statistics by Function 114 OTHER INFORMATION Water System Coverage Calculation 115 Top Ten Water Customers 116 COMPLIANCE SECTION Independent Auditor’s Report Required by Oregon State Regulations 117-118 ---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 December 22, 2021 To the Citizens of Woodburn, Honorable Mayor, City Council, and City Administrator: It is my pleasure to submit the Comprehensive Annual Financial Report (Annual Financial Report) of the City of Woodburn, Oregon, for the fiscal year ended June 30, 2021. State law requires that an Annual Financial Report 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, 2021. 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 26,250, 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--- - iii - 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. Source: State of Oregon Employment Department - 2.0 4.0 6.0 8.0 10.0 12.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year-over-Year Unemployment Rates Oregon Marion County Woodburn ---PAGE BREAK--- - iii - 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 October 2021, Oregon’s year- over-year unemployment rate was 4.4 percent, and Woodburn’s rate was 4.4 percent, which is lower than the U.S. unemployment rate of 4.6 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 approximately 12,000 employees1. Beyond Woodburn, as of October 2021, Salem Region has a labor force of 209,917 and the Portland Region of 1,362,8921. 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 2021-22 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. However, the city received an allocation of the American Rescue Plan Act (ARPA) that will help offset the impact to operations of the COVID-19 pandemic.  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--- - iv - DISTINGUISHED BUDGET PRESENTATION AWARD/EXCELLENCE IN FINANCIAL REPORTING AWARD The City of Woodburn received GFOA's Distinguished Budget Presentation Award for its FY 2021-22 annual budget document. This is the 10th consecutive year that the City of Woodburn has achieved the prestigious award of a distinguished presentation. The Distinguished Budget Presentation award is the highest form of recognition in governmental budgeting. Its attainment represents a significant accomplishment by a government and its management. In order to receive the award, a governmental unit must publish a budget document that meets program criteria as a policy document, a communications medium, an operations guide, and a financial plan. For the 2nd time the City was awarded the Certificate of Achievement for Excellence in Financial Reporting from the GFOA for the FY2019-20 Annual Financial Report. This marks the second year in a row the City has earned the reward. ACKNOWLEDGMENTS This is the second year the City of Woodburn has prepared a Comprehensive Annual Financial Report, which goes beyond the preparation of financial reports to include sections for statistics and continuing disclosure. I would like to thank the entire Finance staff, especially Casey Little and Rosie Sanchez, for the excellent service they provide throughout the year which is reflected in this Comprehensive Annual Financial Report. This report is evidence of their dedication and many hours of hard work. I would also like to thank the City Council and City Administrator for the leadership and support they have provided in developing this Annual Financial Report. ---PAGE BREAK--- - v - ORGANIZATION OF THE CITY OF WOODBURN Source: City of Woodburn, FY 2020-21 Adopted Budget - Functional Organization Chart ---PAGE BREAK--- - vi - ---PAGE BREAK--- - vii - CITY OF WOODBURN, OREGON JUNE 30, 2021 MAYOR AND COUNCIL MEMBERS Name Term Expires Mayor Eric Swenson December 31, 2022 Council Members Debbie Cabrales December 31, 2024 Robert Carney December 31, 2022 Mary Beth Cornwell December 31, 2022 Ben Puente Jr. December 31, 2024 Sharon Schaub December 31, 2022 Ali Swanson December 31, 2024 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, 2021, 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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, 2021, 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 fund (“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. Other Reporting Required by Legal and Regulatory Requirements Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2021 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Reporting Required by Oregon Minimum Standards In accordance with Minimum Standards for Audits of Oregon Municipal Corporations, we have issued our report dated December 22, 2021 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: Ryan T. Pasquarella, A Shareholder December 22, 2021 ---PAGE BREAK--- - 4 - CITY OF WOODBURN Year Ended June 30, 2021 MANAGEMENT’S DISCUSSION AND ANALYSIS The Management’s Discussion and Analysis of the City of Woodburn’s Comprehensive Annual Financial Report (Annual Financial Report) presents a discussion and analysis of the City’s financial performance during the fiscal year ended June 30, 2021. 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: 2021 2020 Change Net position 152,299,861 $ 140,295,337 $ 12,004,524 $ Change in net position 12,004,524 8,677,469 3,327,055 Governmental activities net position 85,538,617 79,813,938 5,724,679 Business-type activities fund net position 66,761,244 60,481,399 6,279,845 Change in governmental net position 5,724,679 4,933,324 791,355 Change in proprietary fund net position 6,279,845 3,744,145 2,535,700 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 $176,353,099 in total assets, $8,589,390 in total deferred outflows, $29,962,430 in total liabilities and $2,680,198 in total deferred inflows, resulting in combined net position of $152,299,860 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 $772,780 over the prior year mainly due the purchase of the Woodburn Family Resource Center, renovations on the community center and street improvements offset by current year depreciation. Business-type capital assets, net of depreciation, decreased $245,075 over the prior year due to construction projects in process offset by current year depreciation. Total liabilities for both governmental and business-type activities decreased by $14,271,952 from the prior year mainly due to payments on long-term debt and defeasance of the 2011 Wastewater Revenue and Refunding Bonds in the current year. Overall, the City’s financial net position increased by $12,004,524 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 27,875,820 $ 18,848,197 $ 46,724,017 $ 22,189,818 $ 27,305,966 $ 49,495,784 $ 5,686,002 $ (8,457,769) $ (2,771,767) $ Other assets 2,443,019 2,230,596 4,673,615 2,757,594 943,079 3,700,673 (314,575) 1,287,517 972,942 Capital assets 71,323,661 53,631,806 124,955,467 70,551,381 53,876,881 124,428,262 772,280 (245,075) 527,205 Total Assets 101,642,500 74,710,599 176,353,099 95,498,793 82,125,926 177,624,719 6,143,707 (7,415,327) (1,271,620) Deferred outflows 7,031,230 1,558,160 8,589,390 7,402,891 1,662,478 9,065,369 (371,661) (104,318) (475,979) Other liabilities 2,772,776 1,741,914 4,514,690 2,910,379 6,049,501 8,959,880 (137,603) (4,307,587) (4,445,190) Long-term liabilities 18,294,826 7,152,914 25,447,740 18,515,595 16,758,907 35,274,502 (220,769) (9,605,993) (9,826,762) Total Liabilities 21,067,602 8,894,828 29,962,430 21,425,974 22,808,408 44,234,382 (358,372) (13,913,580) (14,271,952) Deferred inflows 2,067,511 612,687 2,680,198 1,661,772 498,597 2,160,369 405,739 114,090 519,829 Net position: Net investment in capital assets 66,566,868 48,842,505 115,409,373 64,447,990 46,922,723 111,370,713 2,118,878 1,919,782 4,038,660 Restricted 16,222,715 6,751,461 22,974,176 12,238,720 17,249,531 29,488,251 3,983,995 (10,498,070) (6,514,075) Unrestricted 2,749,034 11,167,278 13,916,312 3,127,228 (3,690,855) (563,627) (378,194) 14,858,133 14,479,939 Total Net Position 85,538,617 $ 66,761,244 $ 152,299,861 $ 79,813,938 $ 60,481,399 $ 140,295,337 $ 5,724,679 $ 6,279,845 $ 12,004,524 $ Change 2021 2020 Governmental Activities The City’s net position from governmental activities increased $5,724,679 from June 30, 2020 to June 30, 2021 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 $6,279,845 (10%) from June 30, 2020 to June 30, 2021 due mainly to the reduction of long-term debt associated with a defeasance coupled with an increase in capital grants and contributions 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 2,996,825 $ 12,744,185 $ 15,741,010 $ 2,642,482 $ 12,112,632 $ 14,755,114 $ 354,343 $ 631,553 $ 985,896 $ Operating grants and contributions 2,682,578 - 2,682,578 4,346,664 - 4,346,664 (1,664,086) - (1,664,086) Capital grants and contributions 5,372,006 2,239,138 7,611,144 2,506,331 425,801 2,932,132 2,865,675 1,813,337 4,679,012 Total Program Revenues 11,051,409 14,983,323 26,034,732 9,495,477 12,538,433 22,033,910 1,555,932 2,444,890 4,000,822 General Revenues Property taxes 11,169,801 - 11,169,801 10,908,076 - 10,908,076 261,725 - 261,725 Franchise taxes 1,676,564 - 1,676,564 1,528,351 - 1,528,351 148,213 - 148,213 Other taxes 596,829 - 596,829 491,023 - 491,023 105,806 - 105,806 Intergovernmental 975,321 - 975,321 903,481 - 903,481 71,840 - 71,840 Other 338,670 215,496 554,166 561,074 693,058 1,254,132 (222,404) (477,562) (699,966) Total General Revenues 14,757,185 215,496 14,972,681 14,392,005 693,058 15,085,063 365,180 (477,562) (112,382) Total Revenues 25,808,594 15,198,819 41,007,413 23,887,482 13,231,491 37,118,973 1,921,112 1,967,328 3,888,440 Expenses General government 2,547,469 - 2,547,469 4,673,660 - 4,673,660 (2,126,191) - (2,126,191) Public safety 8,934,202 - 8,934,202 6,982,033 - 6,982,033 1,952,169 - 1,952,169 Highways and streets 2,525,497 - 2,525,497 2,113,284 - 2,113,284 412,213 - 412,213 Culture and recreation 3,753,726 - 3,753,726 4,139,885 - 4,139,885 (386,159) - (386,159) Economic development 3,021,707 - 3,021,707 2,025,642 - 2,025,642 996,065 - 996,065 Interest on long-term debt 46,781 - 46,781 59,907 - 59,907 (13,126) - (13,126) Water - 3,316,915 3,316,915 - 2,679,610 2,679,610 - 637,305 637,305 Sewer - 4,856,592 4,856,592 - 5,767,483 5,767,483 - (910,891) (910,891) Total Expenses 20,829,382 8,173,507 29,002,889 19,994,411 8,447,093 28,441,504 834,971 (273,586) 561,385 Changes in Net Position Before Transfers 4,979,212 7,025,312 12,004,524 3,893,071 4,784,398 8,677,469 1,086,141 2,240,914 3,327,055 Transfers 745,467 (745,467) - 1,040,253 (1,040,253) - (294,786) 294,786 - Change in Net Position 5,724,679 6,279,845 12,004,524 4,933,324 3,744,145 8,677,469 791,355 2,535,700 3,327,055 Beginning 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 Ending Net Position 85,538,617 $ 66,761,244 $ 152,299,861 $ 79,813,938 $ 60,481,399 $ 140,295,337 $ 5,724,679 $ 6,279,845 $ 12,004,524 $ 2021 2020 Change Governmental Activities. Total revenues for the City’s governmental activities were $25,808,594 for the fiscal year ended June 30, 2021. Approximately 43% of the total revenue for the governmental activities was derived from property taxes and approximately 43% of the total revenue was from program revenues. Total expenses for governmental activities were $20,829,382 and net transfers in were $745,467 resulting in a $5,724,679 increase in net position. General government activities accounted for approximately 12% of the total governmental activities expense. Public safety, highways and streets, culture and recreation, and economic development expenses account for approximately 87% 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 $15,198,819 for the current fiscal year. These activities generated $14,983,323 in program revenues, and $215,496 in interest earnings and miscellaneous revenues. The total expenses for business-type activities were $8,173,507 and net transfers out were $745,467 resulting in a $6,279,845 increase in net position. Business-type activities for the City of Woodburn consist of operations for water and wastewater 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 $26,559,907 of fund balance of the governmental funds, an increase of $5,292,746 from the prior year. The City’s governmental funds include the General 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 $8,546,141 was reported by the General Fund. The fund balance increased by $1,710,219 from the previous year due primarily to a decrease in transfers out with stable revenues and expenses. Proprietary Funds. At the end of the current fiscal year, net position of the enterprise funds equaled $66,761,244, an increase of $6,279,845 from the prior year, and net position of the internal service funds equaled $787,340, an increase of $34,589 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 $11,802,974, an increase of $1,978,284 from previous year, mainly due to an increase in capital contributions and controlled operating expenses. The Sewer Operations Fund had a net position of $54,958,270 an increase of $4,301,561 from the previous year, due to an increase in capital contributions and controlled operating expenses. GENERAL FUND BUDGETARY HIGHLIGHTS Actual revenues (budgetary basis), were under budgeted amounts by approximately General Fund expenditures ended $6,864,809 below budgeted amounts primarily due to management efforts to contain costs throughout the fiscal year. There were three supplemental budgets that affected balances in the General Fund during the year, which increased materials and services by $50,000, revenue by $1,200,000, operating expenses by $1,200,000, and decreased contingency by $50,000. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City’s investment in capital assets for its governmental and business-type activities equaled $71,323,661 and $53,631,806 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 33-34 in the notes to the financial statements. 2021 2020 2021 2020 2021 2020 Land 23,056,538 $ 23,056,538 $ 1,783,816 $ 1,783,816 $ 24,840,354 $ 24,840,354 $ Construction in progress 6,961,106 11,715,865 6,730,248 4,879,135 13,691,354 16,595,000 Buildings 22,315,462 17,255,382 62,748,380 62,748,380 85,063,842 80,003,762 Equipment 8,203,102 7,936,642 3,110,455 3,028,659 11,313,557 10,965,301 Infrastructure 46,547,618 44,632,537 32,362,730 32,362,730 78,910,348 76,995,267 Accumulated depreciation (35,760,165) (34,045,583) (53,103,823) (50,925,839) (88,863,988) (84,971,422) Net capital assets 71,323,661 $ 70,551,381 $ 53,631,806 $ 53,876,881 $ 124,955,467 $ 124,428,262 $ 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 $5,562,450, compared to $6,920,670 in the prior year. The decrease is due to scheduled debt repayments. For the business-type activities, total long-term debt equaled $4,851,970 compared to $18,853,610 in the prior year. The decrease is due to scheduled debt repayments and defeasance of all outstanding 2011 Wastewater Revenue and Refunds Bonds (Series A and Additional information about the City’s long-term debt outstanding is presented on pages 35-37 in the notes to the financial statements. Governmental Activities Business-type Activities Total 2021 2020 2021 2020 2021 2020 General obligation bonds 1,762,000 $ 2,301,000 $ - $ - $ 1,762,000 $ 2,301,000 $ Direct borrowings 2,999,000 3,808,000 - - 2,999,000 3,808,000 Direct placement revenue bonds - - 4,790,000 17,266,543 4,790,000 17,266,543 Bond premium - - - 1,519,698 - 1,519,698 Accrued compensated absences 801,450 811,670 61,970 67,369 863,420 879,039 5,562,450 $ 6,920,670 $ 4,851,970 $ 18,853,610 $ 10,414,420 $ 25,774,280 $ 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, 2021 Governmental Business-type Activities Activities Totals ASSETS Cash and investments 27,875,820 $ 18,848,197 $ 46,724,017 $ Accounts receivable 1,261,362 966,668 2,228,030 Property taxes receivable 464,487 - 464,487 Assessment liens receivable 16,935 - 16,935 Loans receivable 464,765 - 464,765 Prepaid expenses 28,188 1,368,374 1,396,562 Internal balances 127,020 (127,020) - Non-depreciable capital assets 30,017,644 8,514,064 38,531,708 Other capital assets, net of depreciation 41,306,017 45,117,742 86,423,759 OPEB asset 80,262 22,574 102,836 Total Assets 101,642,500 74,710,599 176,353,099 DEFERRED OUTFLOWS Deferred outflows related to PERS 6,945,602 1,533,440 8,479,042 Deferred outflows related to OPEB 81,421 24,021 105,442 Deferred charges on refunding 4,207 699 4,906 Total Deferred Outflows 7,031,230 1,558,160 8,589,390 LIABILITIES Accounts payable 545,147 446,861 992,008 Accrued payroll liabilities 753,717 - 753,717 Deposits payable - 155,109 155,109 Interest payable 9,332 11,156 20,488 Noncurrent liabilities: Due within one year: Long-term debt 1,144,000 1,104,000 2,248,000 Accrued compensated absences 320,580 24,788 345,368 Due in more than one year: Long-term debt 3,617,000 3,686,000 7,303,000 Accrued compensated absences 480,870 37,182 518,052 OPEB liability 497,090 149,651 646,741 Net pension liability 13,699,866 3,280,081 16,979,947 Total Liabilities 21,067,602 8,894,828 29,962,430 DEFERRED INFLOWS Deferred inflows related to PERS 1,951,473 578,686 2,530,159 Deferred inflows related to OPEB 116,038 34,001 150,039 Total Deferred Inflows 2,067,511 612,687 2,680,198 NET POSITION Net investment in capital assets 66,566,868 48,842,505 115,409,373 Restricted for: Debt service 23,929 - 23,929 Culture and recreation 474,759 - 474,759 Community development 2,045,910 - 2,045,910 Construction 13,678,117 6,751,461 20,429,578 Unrestricted 2,749,034 11,167,278 13,916,312 Total Net Position 85,538,617 $ 66,761,244 $ 152,299,861 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 11 - CITY OF WOODBURN, OREGON STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021 Fees, Fines Operating Capital and Charges Grants and Grants and Expenses for Services Contributions Contributions FUNCTIONS/PROGRAMS Governmental activities: General government 2,547,469 $ 291,774 $ - $ 821,592 $ Public safety 8,934,202 137,642 - 2,500 Highways and streets 2,525,497 50,622 1,871,027 1,368,024 Culture and recreation 3,753,726 166,835 733,705 3,179,890 Economic development 3,021,707 2,349,952 77,846 - Interest on long-term debt 46,781 - - - Total Governmental activities 20,829,382 2,996,825 2,682,578 5,372,006 Business-type activities: Water 3,316,914 4,330,970 - 1,038,064 Sewer 4,856,593 8,413,214 - 1,201,073 Total Business-type activities 8,173,507 12,744,184 - 2,239,137 Total Activities 29,002,889 $ 15,741,009 $ 2,682,578 $ 7,611,143 $ 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. - 12 - Governmental Business-type Activities Activities Totals (1,434,103) $ - $ (1,434,103) $ (8,794,060) - (8,794,060) 764,176 - 764,176 326,704 - 326,704 (593,909) - (593,909) (46,781) - (46,781) (9,777,973) - (9,777,973) - 2,052,120 2,052,120 - 4,757,694 4,757,694 - 6,809,814 6,809,814 (9,777,973) 6,809,814 (2,968,159) 11,169,801 - 11,169,801 1,676,564 - 1,676,564 596,829 - 596,829 975,321 - 975,321 10,241 - 10,241 211,337 154,209 365,546 117,092 61,289 178,381 14,757,185 215,498 14,972,683 745,467 (745,467) - 5,724,679 6,279,845 12,004,524 79,813,938 60,481,399 140,295,337 85,538,617 $ 66,761,244 $ 152,299,861 $ Net (Expenses) Revenues and Changes in Net Position ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 13 - CITY OF WOODBURN, OREGON BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2021 General Other Governmental Funds Total ASSETS Cash and investments 8,723,560 $ 17,953,195 $ 26,676,755 $ Accounts receivable 789,314 188,570 977,884 Property taxes receivable 396,433 264,717 661,150 Assessment liens receivable - 16,935 16,935 Loans receivable - 464,765 464,765 Prepaid items 24,888 3,300 28,188 Due from other funds 575,114 - 575,114 Total Assets 10,509,309 $ 18,891,482 $ 29,400,791 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Accounts payable 234,314 $ 254,002 $ 488,316 $ Accrued payroll and payroll liabilities 753,718 - 753,718 Due to other funds 351,883 79,240 431,123 Total Liabilities 1,339,915 333,242 1,673,157 Deferred Inflows Unavailable revenue 623,253 544,474 1,167,727 Fund Balance Non-spendable 24,888 3,300 28,188 Restricted for: Debt service - 23,929 23,929 Construction - 13,673,975 13,673,975 Culture and recreation - 474,759 474,759 Community development - 1,546,952 1,546,952 Committed to: Public safety - 15,267 15,267 Capital outlay - 829,154 829,154 Planning and building - 1,446,430 1,446,430 Unassigned 8,521,253 - 8,521,253 Total Fund Balance 8,546,141 18,013,766 26,559,907 Total Liabilities, Deferred Inflows and Fund Balance 10,509,309 $ 18,891,482 $ 29,400,791 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 14 - CITY OF WOODBURN, OREGON RECONCILIATION OF BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2021 Fund Balances 26,559,907 $ 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. 1,167,727 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 (13,129,792) OPEB liability (475,682) OPEB asset 77,174 Deferred outflows - PERS 6,663,540 Deferred outflows - OPEB 77,978 Deferred inflows - PERS (1,871,461) Deferred inflows - OPEB (111,486) Deferred outflows arising from refundings are not financial resources in governmental funds, but are reported in the Statement of Net Position. 4,207 Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Position at their net depreciable value. Cost 107,083,826 Accumulated depreciation (35,760,165) 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 (764,164) Accrued interest (9,332) Long-term debt (4,761,000) 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. 787,340 Net Position of Governmental Activities 85,538,617 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 15 - CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 General Other Governmental Funds Total REVENUES Taxes and assessments 10,355,444 $ 1,419,448 $ 11,774,892 $ Licenses and permits 2,191,211 3,482,606 5,673,817 Charges for services 477,163 - 477,163 Intergovernmental 1,894,282 5,417,730 7,312,012 Fines and forfeitures 335,368 332,076 667,444 Miscellaneous 560,357 262,108 822,465 Total Revenues 15,813,825 10,913,968 26,727,793 EXPENDITURES Current General government 2,317,327 - 2,317,327 Economic development 1,008,108 2,178,654 3,186,762 Public safety 7,708,918 - 7,708,918 Highways and streets - 1,499,613 1,499,613 Culture and recreation 2,366,620 723,545 3,090,165 Debt Service Principal 547,000 801,000 1,348,000 Interest 27,448 120,989 148,437 Capital outlay - 2,347,640 2,347,640 Total Expenditures 13,975,421 7,671,441 21,646,862 REVENUES OVER (UNDER) EXPENDITURES 1,838,404 3,242,527 5,080,931 OTHER FINANCING SOURCES (USES) Transfers in - 390,000 390,000 Transfers out (150,000) (50,000) (200,000) Proceeds from sale of assets 21,815 - 21,815 Total Other Financing Sources (Uses) (128,185) 340,000 211,815 NET CHANGE IN FUND BALANCE 1,710,219 3,582,527 5,292,746 FUND BALANCE, beginning of year 6,835,922 14,431,239 21,267,161 FUND BALANCE, end of year 8,546,141 $ 18,013,766 $ 26,559,907 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 16 - 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, 2021 Net Change in Fund Balances - Total Governmental Funds 5,292,746 $ 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 (8,259) Decreases in other assets (47,205) 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 (464) Accrued interest payable 2,482 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 2,486,862 Depreciation (1,714,582) 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 1,348,000 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. (1,668,088) Net income of internal service funds 34,589 Change in Net Position of Governmental Activities 5,724,679 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 17 - CITY OF WOODBURN, OREGON STATEMENT OF NET POSITION - PROPRIETARY FUNDS JUNE 30, 2021 Governmental Activities Water Operations Sewer Operations Total Internal Service ASSETS Current Assets Cash and investments 6,514,067 $ 12,334,130 $ 18,848,197 $ 1,199,065 $ Accounts receivable 300,974 665,694 966,668 86,813 Prepaids - 1,368,374 1,368,374 - Total Current Assets 6,815,041 14,368,198 21,183,239 1,285,878 Noncurrent Assets Nondepreciable capital assets 2,508,252 6,005,812 8,514,064 - Other capital assets, net of depreciation 8,745,859 36,371,883 45,117,742 - OPEB asset 9,177 13,397 22,574 3,088 Total Noncurrent Assets 11,263,288 42,391,092 53,654,380 3,088 Total Assets 18,078,329 56,759,290 74,837,619 1,288,966 DEFERRED OUTFLOWS Deferred outflows related to PERS 540,258 993,182 1,533,440 282,061 Deferred outflows related to OPEB 10,511 13,510 24,021 3,443 Deferred charge on refunding 699 - 699 - Total Deferred Outflows 551,468 1,006,692 1,558,160 285,504 LIABILITIES Current Liabilities Accounts payable 190,379 256,482 446,861 56,828 Due to other funds 52,519 74,501 127,020 16,971 Deposits payable 155,109 - 155,109 - Accrued interest payable 11,156 - 11,156 - Current portion of long-term liabilities Long-term debt 1,402,000 - 1,402,000 - Accrued compensated absences 12,549 12,239 24,788 14,914 Total Current Liabilities 1,823,712 343,222 2,166,934 88,713 Noncurrent Liabilities Accrued compensated absences 18,823 18,359 37,182 22,372 Long-term debt 3,388,000 - 3,388,000 - Net pension liability 1,261,710 2,018,371 3,280,081 570,074 OPEB liability 66,583 83,068 149,651 21,408 Total Noncurrent Liabilities 4,735,116 2,119,798 6,854,914 613,854 Total Liabilities 6,558,828 2,463,020 9,021,848 702,567 DEFERRED INFLOWS Deferred inflows related to PERS 253,851 324,835 578,686 80,011 Deferred inflows related to OPEB 14,144 19,857 34,001 4,552 Total Deferred Inflows 267,995 344,692 612,687 84,563 NET POSITION: Net investment in capital assets 6,464,810 42,377,695 48,842,505 - Restricted for: Construction 3,921,239 2,830,222 6,751,461 - Unrestricted 1,416,925 9,750,353 11,167,278 787,340 Total Net Position 11,802,974 $ 54,958,270 $ 66,761,244 $ 787,340 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 18 - CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2021 Governmental Activities Water Operations Sewer Operations Total Internal Service OPERATING REVENUES Charges for services 4,330,970 8,413,214 12,744,184 1,912,995 Miscellaneous 56,411 4,878 61,289 1,352 Total Operating Revenues 4,387,381 8,418,092 12,805,473 1,914,347 OPERATING EXPENSES Personal services 1,788,434 2,155,545 3,943,979 616,808 Materials and services 953,954 1,673,196 2,627,150 1,101,662 Depreciation 416,152 1,761,832 2,177,984 - Total Operating Expenses 3,158,540 5,590,573 8,749,113 1,718,470 OPERATING INCOME (LOSS) 1,228,841 2,827,519 4,056,360 195,877 NONOPERATING REVENUES (EXPENSES) Investment revenue 58,439 95,770 154,209 6,938 Amortization of bond premiums - 1,519,697 1,519,697 - Interest expense (158,374) (785,717) (944,091) - Total Nonoperating Revenues (Expenses) (99,935) 829,750 729,815 6,938 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 1,128,906 3,657,269 4,786,175 202,815 Capital contributions 1,038,064 1,201,073 2,239,137 - Non-cash transfers in 81,795 - 81,795 - Transfers out (270,481) (556,781) (827,262) - Non-cash transfers out - - - (168,226) CHANGE IN NET POSITION 1,978,284 4,301,561 6,279,845 34,589 NET POSITION, beginning of year 9,824,690 50,656,709 60,481,399 752,751 NET POSITION, end of year 11,802,974 $ 54,958,270 $ 66,761,244 $ 787,340 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 19 - CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2021 Governmental Activities Water Operations Sewer Operations Totals Internal Service CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 4,379,324 $ 8,506,501 $ 12,885,825 $ 1,837,258 $ Paid to suppliers (874,096) (3,044,324) (3,918,420) (1,054,306) Paid to employees (1,574,651) (1,882,998) (3,457,649) (547,562) Net Cash Provided by Operating Activities 1,930,577 3,579,179 5,509,756 235,390 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Received from (paid to) other funds (7,166) 3,006 (4,160) (3,177) Transfers out (270,481) (556,779) (827,260) - Net Cash Used in Non-Capital Financing Activities (277,647) (553,773) (831,420) (3,177) CASH FLOWS FROM CAPITAL AND Acquisition of capital assets (780,302) (1,070,811) (1,851,113) (168,226) Principal paid on loans and bonds payable (1,402,000) (11,074,543) (12,476,543) - Capital contributions 1,038,907 1,202,937 2,241,844 - Interest paid (161,640) (1,042,861) (1,204,501) - Net Cash Used in Capital and Related Financing Activities (1,305,035) (11,985,278) (13,290,313) (168,226) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 58,438 95,770 154,208 6,938 Increase (Decrease) in Cash and Investments 406,333 (8,864,102) (8,457,769) 70,925 CASH AND INVESTMENTS, Beginning of year 6,107,734 21,198,232 27,305,966 1,128,140 CASH AND INVESTMENTS, End of year 6,514,067 $ 12,334,130 $ 18,848,197 $ 1,199,065 $ RELATED FINANCING ACTIVITIES ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 20 - CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS (Continued) YEAR ENDED JUNE 30, 2021 Governmental Activities Water Operations Sewer Operations Totals Internal Service RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) 1,228,841 $ 2,827,519 $ 4,056,360 $ 195,877 $ cash provided by operating activities: Depreciation 416,152 1,761,832 2,177,984 - Change in assets and liabilities: Accounts receivable (25,002) (1,273,106) (1,298,108) (77,089) Deferred outflows 47,707 56,612 104,319 16,931 OPEB asset 5,472 6,522 11,994 - Accounts payable and accrued liabilities 79,855 (9,614) 70,241 47,356 Customer deposits 16,945 - 16,945 - Compensated absences payable (10,676) 5,277 (5,399) (10,684) Net pension liability (asset) 119,916 142,917 262,833 42,741 OPEB liability (686) (817) (1,503) (245) Deferred inflows 52,053 62,037 114,090 18,553 Net Cash Provided by Operating Activities 1,930,577 $ 3,579,179 $ 5,509,756 $ 235,390 $ Noncash Transactions Transfer of capital assets 81,795 $ - $ 81,795 $ - $ Adjustments to reconcile the change in operating ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- - 21 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2021 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, 2021. 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 and the City has operational responsibility for the agency. 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. Interfund activity that is not related to interfund services provided and used has been removed from these statements. These statements focus on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the fiscal period. These aggregated statements consist of the Statement of Net Position and the Statement of Activities. ---PAGE BREAK--- - 22 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued) The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund financial statements display information at the individual fund level. Each fund is considered to be a separate accounting entity. Funds are classified and summarized as governmental, enterprise or fiduciary. Currently, the City has general, special revenue, 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. ---PAGE BREAK--- - 23 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Balance (Continued) Fund balance is reported as nonspendable when the resources cannot be spent because they are either in a nonspendable form or legally or contractually required to be maintained intact. Resources in nonspendable form include inventories, prepaids and deposits, and assets held for resale. Fund balance is reported as restricted when the constraints placed on the use of resources are either: externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. Fund balance is reported as committed when the City Council takes formal action that places specific constraints on how the resources may be used. The City Council can modify or rescind the commitment at any time through taking a similar formal action. Resources that are constrained by the City’s intent to use them for a specific purpose, but are neither restricted nor committed, are reported as assigned fund balance. Intent is expressed when the City Council approves which resources should be “reserved” during the adoption of the annual budget. The City’s Finance Director uses that information to determine whether those resources should be classified as assigned or unassigned for presentation in the City’s Annual Financial Report. Unassigned fund balance is the residual classification for the General Fund. This classification represents fund balance that has not been restricted, committed, or assigned within the General Fund. This classification is also used to report any negative fund balance amounts in other governmental funds. The City Council has approved a policy to maintain an ending fund balance in the General Fund, in order to provide stable services and employment to offset cyclical variations in revenues and expenditures. The targeted floor for the ending balance 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. ---PAGE BREAK--- - 24 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Fund Financial Statements Governmental funds use the modified accrual basis of accounting whereby revenues are recorded only when susceptible to accrual (both measurable and available). “Measurable” means that the amount of the transaction can be determined. “Available” is defined as being collectible within the current period or soon enough thereafter (30 days) to be used to liquidate liabilities of the current period. Expenditures other than interest on noncurrent obligations, are recorded when the fund liability is incurred. Real and personal property taxes are levied as of July 1 for each fiscal year on values assessed as of January 1. Property taxes are an enforceable lien on both real and personal property as of July 1 and are due and payable in three installments on November 15, February 15 and May 15. All property taxes are billed and collected by Marion County and remitted to the City. In the governmental fund financial statements, property taxes are reflected as revenues in the fiscal period for which they were levied, provided they are due, or past due and receivable within the current period, and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period (30 days). Otherwise, they are reported as 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 The City reports the following major proprietary funds: Water Operations Sewer Operations ---PAGE BREAK--- - 25 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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, 2021. Actual results may differ from such estimates. 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 market 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 stated 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 capital assets and donated works of art or similar items are reported at acquisition value rather than at fair value. ---PAGE BREAK--- - 26 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Assets (Continued) Capital assets include land, right-of-way (included with land), buildings, improvements, equipment, infrastructure and other tangible and intangible assets costing over $5,000 used in operations that have initial useful lives extending beyond a single reporting period. Infrastructure are those capital assets that are stationary in nature and can be preserved for a significantly greater number of years than most other capital assets. Infrastructure reported in governmental activities consists of roads, bridges, sidewalks, and traffic and lighting systems. Infrastructure reported in business-type activities consists of water and wastewater collection systems. All capital assets, except for infrastructure in governmental activities prior to July 1, 1980, have been capitalized in the government-wide and proprietary fund financial statements. In accordance with the current financial resources measurement focus, capital assets are not capitalized in the governmental fund financial statements. All purchased capital assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Historical cost is measured by the cash or cash equivalent price of obtaining an asset, including ancillary charges necessary to place the asset into its intended location and condition for use. Donated capital assets are reported at their estimated market 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--- - 27 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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, 2020 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 market 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 market value. ---PAGE BREAK--- - 28 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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 Transit Fund – This fund accounts for amounts held to be used for transportation services. ---PAGE BREAK--- - 29 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 ORGANIZATION AND OPERATION (Continued) Governmental Fund Types (Continued) Special Revenue Funds (Continued) 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. 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. Lavelle Black Trust Fund – This fund accounts for the donations received to continue the police dog program. 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. Capital Projects Funds General Capital Construction Fund - This fund is used to account for transfers from general services funds used for general services construction projects. Special Assessment Fund - This fund accounts for the repayment of local improvement district (LID) assessments. The money is used for construction of LID projects. Street & Storm Capital 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. 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--- - 30 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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 associated 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--- - 31 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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 644,827 644,827 Investments Local Government Investment Pool 46,075,430 46,259,732 $ 46,724,017 $ 46,908,319 Cash is reported in the financial statements as follows: Governmental funds $ 26,676,755 Internal Service funds (included in governmental activities) 1,199,065 Enterprise funds 18,848,197 $ 46,724,017 Carrying Fair Value Value Deposits The book balance of the City’s bank deposits was $644,827 and the bank balance was $584,056 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; market value was 100.4% of the value of the pool shares as of June 30, 2021. 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--- - 32 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 CASH AND INVESTMENTS (Continued) Interest Rate Risk In accordance with its investment policy, the City manages its exposure to declines in market 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, 2021, $334,056 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--- - 33 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 CAPITAL ASSETS The summary of capital assets for the business-type activities for the year ended June 30, 2021 is as follows: Balances Balances July 1, June 30, 2020 Additions Retirements 2021 Nondepreciable assets Land 1,783,816 $ - $ - $ 1,783,816 $ Construction in progress 4,879,135 1,851,113 - 6,730,248 Subtotal, nondepreciable assets 6,662,951 1,851,113 - 8,514,064 Depreciable assets Buildings 62,748,380 - - 62,748,380 Water and sewer systems 32,362,730 - - 32,362,730 Equipment 3,028,660 81,795 - 3,110,455 Subtotal, depreciable assets 98,139,770 81,795 - 98,221,565 Accumulated depreciation Buildings and improvements (34,882,211) (1,509,927) - (36,392,138) Water and sewer systems (13,960,356) (532,370) - (14,492,726) Equipment (2,083,272) (135,687) - (2,218,959) Total accumulated depreciation (50,925,839) (2,177,984) - (53,103,823) Total depreciable assets, net 47,213,931 (2,096,189) - 45,117,742 Net capital assets 53,876,882 $ (245,076) $ - $ 53,631,806 $ Depreciation expense was allocated as follows: Water operations 416,152 $ Sewer operations 1,761,832 2,177,984 $ ---PAGE BREAK--- - 34 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 CAPITAL ASSETS (Continued) The summary of capital assets for governmental activities for the year ended June 30, 2021 is as follows: Balances Balances July 1, June 30, 2020 Additions 2021 Nondepreciable assets Land 23,056,538 $ - $ - $ 23,056,538 $ Construction in progress 11,715,865 549,199 (5,303,958) 6,961,106 Subtotal, nondepreciable assets 34,772,403 549,199 (5,303,958) 30,017,644 Depreciable assets Buildings 17,255,382 5,060,080 - 22,315,462 Equipment 7,936,642 266,460 - 8,203,102 Infrastructure 44,632,537 1,915,081 - 46,547,618 Subtotal, depreciable assets 69,824,561 7,241,621 - 77,066,182 Accumulated depreciation Buildings (8,155,632) (678,258) - (8,833,890) Equipment (6,558,355) (307,309) (6,865,664) Infrastructure (19,331,596) (729,015) - (20,060,611) Total accumulated depreciation (34,045,583) (1,714,582) - (35,760,165) Total depreciable assets, net 35,778,978 5,527,039 - 41,306,017 Net capital assets 70,551,381 $ 6,076,238 $ (5,303,958) $ 71,323,661 $ Retirements/ Transfers Depreciation expense was allocated as follows: General government 426,704 $ Public safety 194,966 Highways and streets 822,629 Culture and recreation 129,209 Internal service funds 141,074 1,714,582 $ ---PAGE BREAK--- - 35 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 LONG-TERM DEBT Long-term debt transactions for the year ended June 30, 2021 were as follows: Outstanding Matured/ Outstanding Due July 1, Redeemed June 30, Within 2020 Issued During Year 2021 One Year Governmental Activities: 2,301,000 $ - $ (539,000) $ 1,762,000 $ 568,000 $ Direct borrowings 3,808,000 - (809,000) 2,999,000 576,000 6,109,000 - (1,348,000) 4,761,000 1,144,000 Accrued compensated absences 811,670 697,674 (707,894) 801,450 320,580 6,920,670 $ 697,674 $ (2,055,894) $ 5,562,450 $ 1,464,580 $ Business-type Activities: Direct placement revenue bonds 6,192,000 $ - $ (1,402,000) $ 4,790,000 $ 1,104,000 $ Revenue bonds 11,074,543 - (11,074,543) - - 17,266,543 - (12,476,543) 4,790,000 1,104,000 2011 Sewer Revenue Bond premium 1,519,698 - (1,519,698) - - Accrued compensated absences 67,369 79,245 (84,644) 61,970 24,788 18,853,610 $ 79,245 $ (14,080,885) $ 4,851,970 $ 1,128,788 $ 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, 2021 is $1,762,000. Annual debt service requirements to maturity for bonds payable are as follows: Principal Interest Total 2022 568,000 $ 37,315 $ 605,315 $ 2023 597,000 25,501 622,501 2024 597,000 13,082 610,082 1,762,000 $ 75,898 $ 1,837,898 $ Fiscal Year June 30, Ending ---PAGE BREAK--- - 36 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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, 2021 is $621,000. 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, 2021 is $2,378,000 Annual debt service requirements for direct borrowings are as follows: Principal Interest Total 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 301,000 34,736 335,736 2027-2029 953,000 53,267 1,006,267 2,999,000 $ 327,864 $ 3,326,864 $ 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, 2021 is $4,790,000. ---PAGE BREAK--- - 37 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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 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 912,000 13,406 925,406 4,790,000 $ 271,567 $ 5,061,567 $ 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. 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 liability for those bonds has been removed from the statement of net position. 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 Comprehensive Annual Financial Report which can be found at: http://www.oregon.gov/pers/Pages/section/financial_reports/financials.aspx. ---PAGE BREAK--- - 38 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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--- - 39 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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, 2017 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 24.13% for Tier One/Tier Two members, 16.23% for OPSRP General Service members, and 20.86% for OPSRP Police and Fire members. The City’s total contributions exclusive of the 6% “pick-up” was $1,620,296. 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. Contributions and pension expense are reported in the funds in which the related payroll costs are incurred, primarily the General, Street, Water, Sewer, Information Technology and Insurance funds. ---PAGE BREAK--- - 40 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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, 2021, the City reported a liability of $16,979,947 for its proportionate share of the OPERS net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2018 rolled forward to June 30, 2020. 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, 2020, the City’s proportion was 0.0778%, which is a decrease of 0.0134% from its proportion measured as of June 30, 2019. For the year ended June 30, 2021, the City recognized pension expense of $2,199,806. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual $ 747,323 $ - experience Changes of assumptions 911,260 31,929 Net difference between projected and actual earnings on investments 1,996,621 - Changes in proportionate share 407,974 2,408,184 Differences between employer contributions and proportionate share of contributions 2,795,568 90,046 Contributions subsequent to measurement date 1,620,296 - Total $ 8,479,042 $ 2,530,159 Deferred Outflows of Resources Deferred Inflows of Resources Deferred outflows of resources related to pensions of $1,620,296 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, 2022. 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, 2022 $ 759,774 2023 1,164,042 2024 1,320,788 2025 988,768 2026 95,215 Total $ 4,328,587 ---PAGE BREAK--- - 41 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Actuarial Methods and Assumptions The total pension liability in the December 31, 2018 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: Pub-2010 Healthy Retiree, sex-distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Active members: Pub-2010 Healthy Retiree, sex-distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Disabled retirees: Pub-2010 Disabled Retiree, sex-distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. 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 2018 experience study which reviewed experience for the four-year period ending on December 31, 2018. ---PAGE BREAK--- - 42 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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 9.60 % 4.07 % Short-Term Bonds 9.60 3.68 Bank/Leveraged Loans 3.60 5.19 High Yield Bonds 1.20 5.74 Large/Mid Cap US Equities 16.17 6.30 Small Cap US Equities 1.35 6.68 Micro Cap US Equities 1.35 6.79 Developed Foreign Equities 13.48 6.91 Emerging Market Equities 4.24 7.69 Non-US Small Cap Equities 1.93 7.25 Private Equity 17.50 8.33 Real Estate (Property) 10.00 5.55 Real Estate (REITS) 2.50 6.69 Hedge Fund of Funds - Diversified 1.50 4.06 Hedge Fund - Event-driven 0.38 5.59 Timber 1.13 5.61 Farmland 1.13 6.12 Infrastructure 2.25 6.67 Commodities 1.13 3.79 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--- - 43 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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 $ 25,213,820 $ 16,979,947 $ 1,075,464 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, 2021. 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, 2021. 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. Contributions and OPEB expense are reported in the funds in which the related payroll costs are incurred, primarily the General, Street, Water, Sewer, Information Technology and Insurance funds. ---PAGE BREAK--- - 44 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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 - $ 102,836 $ 102,836 $ Deferred Outflows of Resources Contributions After Measurement Date 44,392 1,896 46,288 Differences between expected and actual experience - 11,436 11,436 Change in assumptions 15,802 - 15,802 Changes in proportionate share - 31,916 31,916 Total Deferred Outflows of Resources 60,194 45,248 105,442 Total OPEB Liability (646,741) - (646,741) Deferred Inflows of Resources Differences between expected and actual experience (24,643) (10,513) (35,156) Change in assumptions (109,396) (5,466) (114,862) Changes in proportionate share - (21) (21) Total Deferred Inflows of Resources (134,039) (16,000) (150,039) OPEB Expense/(Income) 4,399 42,346 46,745 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--- - 45 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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 $646,741 was measured as of June 30, 2020, and was determined by an actuarial valuation as of December 31, 2018. For the fiscal year ended June 30, 2021, the City recognized OPEB income from this plan of $187. At June 30, 2021, 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 - $ 24,643 $ Changes of assumptions 15,802 109,396 Contributions subsequent to measurement date 44,392 - Total 60,194 $ 134,039 $ Deferred outflows of resources related to OPEB of $44,392 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, 2022. 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: 2022 (19,805) $ 2023 (19,805) 2024 (19,805) 2025 (19,805) 2026 (19,805) Thereafter (19,212) Total (118,237) $ ---PAGE BREAK--- - 46 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Actuarial Assumptions and Other Inputs The total OPEB liability for the June 30, 2021 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 2.21%, medical and vision varies between 5.75% and 3.75%, dental at 4.00%, and mortality rates based on the PUB-2010 General and Safety Employee and Healthy Retiree tables, sex distinct for members and dependents, with a one-year setback for male general service employees and female safety employees. 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, 2020 653,590 $ Changes for the year: Service cost 44,820 Interest on total OPEB liability 23,775 Effect of economic/demographic gains or losses (15,430) Effect of assumptions changes or inputs (21,415) Benefit payments (38,599) Balance as of June 30, 2021 646,741 $ The effect of changes in assumptions is the result of the change in the discount rate from 3.50 to 2.21. 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 (1.21 percent) or 1 percentage point higher (3.21 percent) than the current discount rate. A similar sensitivity analysis is then presented for changes in the healthcare trend assumption. Discount Rate: 1% Decrease (1.21%) Current Discount Rate (2.21%) 1% Increase (3.21%) Total OPEB Liability 669,774 $ 646,741 $ 597,209 $ Healthcare Cost Trend: 1% Decrease (2.75% increasing to 3.00%) Trend Rate (3.75% increasing to 4.00%) 1% Increase (4.75% increasing to 5.00%) Total OPEB Liability 570,514 $ 646,741 $ 738,196 $ ---PAGE BREAK--- - 47 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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, 2018 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 0.06% for Tier One/Tier Two members. The City’s total contributions for the year ended June 30, 2021 were $5,106. OPEB Assets, Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2021, the City reported an asset of $102,835 for its proportionate share of the OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2020 and was determined by an actuarial valuation as of December 31, 2018, rolled forward to June 30, 2020. 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, 20120 the City’s proportionate share was 0.0505%, which is a decrease from its proportion of 0.0815% as of June 30, 2019. ---PAGE BREAK--- - 48 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) PERS Retirement Health Insurance Account (Continued) For the year ended June 30, 2021, the City recognized OPEB expense from this plan of $35,344. At June 30, 2021, 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 - $ 10,513 $ - 5,466 11,436 - 31,916 21 1,896 - Total 45,248 $ 16,000 $ 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 $1,896 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, 2022. 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: 2022 (6,628) $ 2023 (12,889) 2024 (4,227) 2025 (3,608) Total (27,352) $ 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--- - 49 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 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) (83,022) $ (102,836) $ (119,776) $ 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 Out Governmental funds Other non-major $ 150,000 $ 50,000 $ 50,000 $ 140,000 $ 390,000 Total Transfers In $ 150,000 $ 50,000 $ 50,000 $ 140,000 $ 390,000 Business-type funds Transfers In Governmental funds Total Transfers Out General Non-major Water Operations Sewer Operations Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them or, move unrestricted revenues to finance programs accounted for in other funds in accordance with budgetary authorization. The table above is based on fund financials statements. ---PAGE BREAK--- - 50 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2021 EXPENDITURES IN EXCESS OF APPROPRIATIONS Expenditures in excess of appropriations for the year ending June 30, 2021 occurred as follows: General Economic development $ 174,640 $ 177,914 $ (3,274) Planning 557,820 573,466 (15,646) Water Debt service - interest 161,430 161,435 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. RISKS AND UNCERTAINTIES As a result of the recent coronavirus pandemic (COVID-19), numerous sectors of the economy are suffering damage and long-term economic and business consequences of this remain unknown. The extent to which this will impact the City is unknown. SUBSEQUENT EVENTS Management has evaluated subsequent events through December 22, 2021, the date on which the financial statements were available to be issued. In August 2021, the City received $2,917,813 in American Rescue Plan Act grant funds. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- - 51 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND (BUDGETARY BASIS) YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Taxes and assessments 10,225,000 $ 10,225,000 $ 10,355,444 $ 130,444 $ Licenses and permits 244,700 244,700 280,925 36,225 Franchise fees 1,865,910 1,865,910 1,910,286 44,376 Charges for services 1,098,940 1,098,940 477,163 (621,777) Intergovernmental 996,900 2,196,900 1,894,282 (302,618) Fines and forfeitures 1,125,500 1,125,500 335,368 (790,132) Miscellaneous 602,820 602,820 560,357 (42,463) Total Revenues 16,159,770 17,359,770 15,813,825 (1,545,945) EXPENDITURES Administration 1,661,680 1,661,680 1,287,976 373,704 Economic development 174,640 174,640 177,914 (3,274) Nondepartmental 409,460 1,609,460 1,029,351 580,109 Police 8,584,580 8,584,580 7,708,918 875,662 Community services 3,603,500 3,603,500 2,366,620 1,236,880 Planning 507,820 557,820 573,466 (15,646) Engineering 310,440 310,440 256,728 53,712 Debt service Principal 547,000 547,000 547,000 - Interest 27,500 27,500 27,448 52 Contingency 3,813,610 3,763,610 - 3,763,610 Total Expenditures 19,640,230 20,840,230 13,975,421 6,864,809 REVENUES OVER (UNDER) EXPENDITURES (3,480,460) (3,480,460) 1,838,404 5,318,864 OTHER FINANCING SOURCES (USES) Transfers in 285,350 285,350 - (285,350) Transfers out (150,000) (150,000) (150,000) - Proceeds from sale of assets 25,000 25,000 21,815 (3,185) Total Other Financing Sources (Uses) 160,350 160,350 (128,185) (288,535) NET CHANGE IN FUND BALANCE (3,320,110) (3,320,110) 1,710,219 5,030,329 FUND BALANCE, beginning of year 4,656,890 4,656,890 6,835,922 2,179,032 FUND BALANCE, end of year 1,336,780 $ 1,336,780 $ 8,546,141 7,209,361 $ Budget Amounts ---PAGE BREAK--- - 52 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM LAST EIGHT FISCAL YEARS 1 2021 2020 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability (asset) 0.7781% 0.0912% 0.0856% 0.0994% 0.1081% 0.1224% 0.1145% 0.1145% 16,979,947 $ 15,782,405 $ 12,969,468 $ 13,401,200 $ 16,230,093 $ 7,026,676 $ (2,595,126) $ 5,842,512 $ City's covered payroll 10,145,281 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 payroll 167.4% 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 75.8% 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--- - 53 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S CONTRIBUTIONS OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM LAST EIGHT FISCAL YEARS 1 2021 2020 2019 2018 2017 2016 2015 2014 Contractually required contributions 1,620,295 $ 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 (1,620,295) (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 payroll 9,855,515 $ 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 payroll 16.44% 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--- - 54 - CITY OF WOODBURN, OREGON SCHEDULE OF CHANGES IN TOTAL OTHER POST-EMPLOYMENT BENEFITS LIABILITY AND RELATED RATIOS - IMPLICIT RATE SUBSIDY LAST FOUR FISCAL YEARS1 2021 2020 2019 2018 Service cost 44,820 $ 39,806 $ 47,892 $ 51,565 $ Interest on total OPEB liability 23,775 24,532 25,949 21,016 Effect of economic/demographic gains or (losses) (15,430) - (16,512) - Effect of assumption change or inputs (21,415) 20,318 (96,751) (46,746) Benefit payments (38,599) (49,862) (37,144) (32,401) Net change in total OPEB liability (6,849) 34,794 (76,566) (6,566) Net OPEB liability, beginning 653,590 618,796 695,362 701,928 Net OPEB liability, ending 646,741 $ 653,590 $ 618,796 $ 695,362 $ Covered-employee payroll 9,855,515 $ 10,145,281 $ 8,868,978 $ 8,950,436 $ Total OPEB liability as a % of covered-employee payroll 6.6% 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--- - 55 - 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 FIVE FISCAL YEARS 1 2021 2020 2019 2018 2017 City's proportion of the net OPEB liability (asset) 0.0505% 0.0815% 0.0825% 0.0815% 0.0869% (102,836) $ (157,485) $ (92,049) $ (34,002) $ 23,610 $ City's covered payroll 8,868,978 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 payroll -1.2% -1.8% -1.0% -0.4% 0.3% Plan fiduciary net position as a percentage of the total pension liability 150.1% 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--- - 56 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S CONTRIBUTIONS OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM RETIREE HEALTH INSURANCE ACCOUNT LAST FIVE FISCAL YEARS 1 2021 2020 2019 2018 2017 Contractually required contributions 5,106 $ 40,436 $ 39,580 $ 40,561 $ 38,765 $ Contributions in relation to the contractually required contribution (5,106) (40,436) (39,580) (40,561) (38,765) Contribution deficiency (excess) - $ - $ - $ - $ - $ City's covered payroll 9,855,515 $ 10,145,281 $ 8,868,978 $ 8,950,436 $ 8,800,124 $ Contributions as a percentage of covered payroll 0.05% 0.40% 0.45% 0.45% 0.44% 1 10-year trend information required by GASB Statement 75 will be presented prospectively ---PAGE BREAK--- - 57 - CITY OF WOODBURN, OREGON NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2021 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, July 26, 2017, and July 25, 2019, respectively. These reports can be found at: http://www.oregon.gov/PERS/Pages/Financials/Actuarial-Presentations-and-Reports.aspx. ---PAGE BREAK--- - 58 - CITY OF WOODBURN, OREGON NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2021 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) Other Postemployment Benefits The tables on pages 54-56 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--- - 59 - CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2021 Street Transit Building Inspection ASSETS Cash and investments 4,990,297 $ 286,326 $ 1,620,078 $ Accounts receivable - 188,570 - Property taxes receivable 196,664 - - Assessment liens receivable - - - Loans receivable - - - Prepaids - - - Total Assets 5,186,961 $ 474,896 $ 1,620,078 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities: Accounts payable 36,246 $ 14,363 $ 155,318 $ Due to other funds 34,003 19,085 18,330 Total Liabilities 70,249 33,448 173,648 Deferred Inflows: Unavailable revenue - - - Fund Balance: Non-spendable - - - Restricted for: Debt service - - - Construction 5,116,712 - - Culture and recreation - 441,448 - Community development - - - Committed to: Public safety - - - Capital outlay - - - Planning and building - - 1,446,430 Total Fund Balance 5,116,712 441,448 1,446,430 Total Liabilities, Deferred Inflows and Fund Balance 5,186,961 $ 474,896 $ 1,620,078 $ Special Revenue ---PAGE BREAK--- - 60 - Asset Forfeiture Housing Rehabilitation Lavelle Black Trust Urban Renewal General Capital Construction Special Assessment 15,267 $ 26,076 $ 33,311 $ 1,568,480 $ 222,841 $ 34,955 $ - - - - - - - - - 37,677 - - - - - - - 16,935 - 464,765 - - - - - - - - 3,300 - 15,267 $ 490,841 $ 33,311 $ 1,606,157 $ 226,141 $ 51,890 $ - $ - $ - $ 43,266 $ - $ - $ - 97 - 7,725 - - - 97 - 50,991 - - - 464,765 - 34,193 842 16,935 - - - - 3,300 - - - - - - - - - - - 221,999 - - - 33,311 - - - - 25,979 - 1,520,973 - - 15,267 - - - - - - - - - - 34,955 - - - - - - 15,267 25,979 33,311 1,520,973 225,299 34,955 15,267 $ 490,841 $ 33,311 $ 1,606,157 $ 226,141 $ 51,890 $ Special Revenue Capital Projects ---PAGE BREAK--- - 61 - CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) JUNE 30, 2021 Street & Storm Capital Construction Parks SDC Street SDC ASSETS Cash and investments 598,468 $ 1,836,742 $ 5,125,845 $ Accounts receivable - - - Property taxes receivable - - - Assessment liens receivable - - - Loans receivable - - - Prepaids - - - Total Assets 598,468 $ 1,836,742 $ 5,125,845 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities: Accounts payable 1,152 $ - $ 3,657 $ Due to other funds - - - Total Liabilities 1,152 - 3,657 Deferred Inflows: Unavailable revenue - - - Fund Balance: Non-spendable - - - Restricted for: Debt service - - - Construction 597,316 1,836,742 5,122,188 Culture and recreation - - - Community development - - - Committed to: Public safety - - - Capital outlay - - Planning and building - - - Total Fund Balance 597,316 1,836,742 5,122,188 Total Liabilities, Deferred Inflows and Fund Balance 598,468 $ 1,836,742 $ 5,125,845 $ Capital Projects ---PAGE BREAK--- - 62 - Debt Service Storm SDC Equipment Replacement GO Debt Service Total 779,018 $ 794,199 $ 21,292 $ 17,953,195 $ - - - 188,570 - - 30,376 264,717 - - - 16,935 - - - 464,765 - - - 3,300 779,018 $ 794,199 $ 51,668 $ 18,891,482 $ - $ - $ - $ 254,002 $ - - - 79,240 - - - 333,242 - - 27,739 544,474 - - - 3,300 - - 23,929 23,929 779,018 - - 13,673,975 - - - 474,759 - - - 1,546,952 - - - 15,267 - 794,199 - 829,154 - - - 1,446,430 779,018 794,199 23,929 18,013,766 779,018 $ 794,199 $ 51,668 $ 18,891,482 $ Capital Projects ---PAGE BREAK--- - 63 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 Street Transit Building Inspection REVENUES Taxes and assessments 73,791 $ - $ - $ Licenses and permits - - 997,888 Intergovernmental 1,871,027 852,945 771,225 Fines and forfeitures 332,076 - - Miscellaneous 56,568 24,875 11,598 Total Revenues 2,333,462 877,820 1,780,711 EXPENDITURES Current Culture and recreation - 721,373 - Economic development - - 1,504,267 Highways and streets 1,499,613 - - Debt service Principal - - - Interest - - - Capital outlay - - - Total Expenditures 1,499,613 721,373 1,504,267 REVENUES OVER (UNDER) EXPENDITURES 833,849 156,447 276,444 OTHER FINANCING SOURCES (USES) Transfers in 90,000 150,000 - Transfers out (50,000) - - Total Other Financing Sources (Uses) 40,000 150,000 - NET CHANGE IN FUND BALANCE 873,849 306,447 276,444 FUND BALANCE, beginning of year 4,242,863 135,001 1,169,986 FUND BALANCE, end of year 5,116,712 $ 441,448 $ 1,446,430 $ Special Revenue ---PAGE BREAK--- - 64 - Asset Forfeiture Housing Rehabilitation Lavelle Black Trust Urban Renewal General Capital Construction Special Assessment - $ - $ - 769,763 - $ - $ - - - - - - - - - 77,846 1,844,687 - - - - - - - 135 31,157 312 16,085 - 4,977 135 31,157 312 863,694 1,844,687 4,977 - - 2,172 - - - - 416,608 - 257,779 - - - - - - - - 262,000 - - - - - 73,128 - - - - - 104,126 1,874,493 - - 416,608 2,172 697,033 1,874,493 - 135 (385,451) (1,860) 166,661 (29,806) 4,977 - - - - - - - - - - - - - - - - - - 135 (385,451) (1,860) 166,661 (29,806) 4,977 15,132 411,430 35,171 1,354,312 255,105 29,978 15,267 $ 25,979 $ 33,311 $ 1,520,973 $ 225,299 $ 34,955 $ Capital Projects Special Revenue ---PAGE BREAK--- - 65 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2021 Street & Storm Capital Construction Parks SDC Street SDC REVENUES Taxes and assessments - $ - $ - $ Licenses and permits - 1,114,193 1,306,966 Intergovernmental - - - Fines and forfeitures - - - Miscellaneous 53,757 9,290 37,587 Total Revenues 53,757 1,123,483 1,344,553 EXPENDITURES Current Culture and recreation - - - Economic development - - - Highways and streets - - Debt service Principal - - - Interest - - - Capital outlay 241,881 - 45,345 Total Expenditures 241,881 - 45,345 REVENUES OVER (UNDER) EXPENDITURES (188,124) 1,123,483 1,299,208 OTHER FINANCING SOURCES (USES) Transfers in - - - Transfers out - - - Total Other Financing Sources (Uses) - - - NET CHANGE IN FUND BALANCE (188,124) 1,123,483 1,299,208 FUND BALANCE, beginning of year 785,440 713,259 3,822,980 FUND BALANCE, end of year 597,316 $ 1,836,742 $ 5,122,188 $ Capital Projects ---PAGE BREAK--- - 66 - Debt Service Storm SDC Equipment Replacement GO Debt Service Total - $ - $ 575,894 $ 1,419,448 $ 63,559 - - 3,482,606 - - - 5,417,730 - - - 332,076 6,642 6,833 2,292 262,108 70,201 6,833 578,186 10,913,968 - - - 723,545 - - - 2,178,654 - - 1,499,613 - - 539,000 801,000 - 47,861 120,989 - 81,795 - 2,347,640 - 81,795 586,861 7,671,441 70,201 (74,962) (8,675) 3,242,527 - 150,000 - 390,000 - - - (50,000) - 150,000 - 340,000 70,201 75,038 (8,675) 3,582,527 708,817 719,161 32,604 14,431,239 779,018 $ 794,199 $ 23,929 $ 18,013,766 $ Capital Projects ---PAGE BREAK--- - 67 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - STREET FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Taxes and assessments 130,000 $ 130,000 $ 73,791 $ (56,209) $ Licenses and permits 500 500 - (500) Intergovernmental 1,600,000 1,600,000 1,871,027 271,027 Fines and forfeitures 355,000 355,000 332,076 (22,924) Miscellaneous 195,500 195,500 56,568 (138,932) Total Revenues 2,281,000 2,281,000 2,333,462 52,462 EXPENDITURES Street 3,378,350 3,378,350 1,499,613 1,878,737 Contingency 965,720 965,720 - 965,720 Total Expenditures 4,344,070 4,344,070 1,499,613 2,844,457 REVENUES OVER (UNDER) EXPENDITURES (2,063,070) (2,063,070) 833,849 2,896,919 OTHER FINANCING SOURCES (USES) Transfers in 90,000 90,000 90,000 - Transfers out (1,945,460) (1,945,460) (50,000) 1,895,460 Total Other Financing Sources (Uses) (1,855,460) (1,855,460) 40,000 1,895,460 NET CHANGE IN FUND BALANCE (3,918,530) (3,918,530) 873,849 4,792,379 FUND BALANCE, beginning of year 3,918,530 3,918,530 4,242,863 324,333 FUND BALANCE, end of year - $ - $ 5,116,712 $ 5,116,712 $ Budget Amounts ---PAGE BREAK--- - 68 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - TRANSIT FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Charges for services 30,000 $ 30,000 $ - $ (30,000) $ Intergovernmental 660,600 660,600 852,945 192,345 Miscellaneous 10,000 10,000 24,875 14,875 Total Revenues 700,600 700,600 877,820 177,220 EXPENDITURES Transit 881,590 881,590 721,373 160,217 Contingency 9,010 9,010 - 9,010 Total Expenditures 890,600 890,600 721,373 169,227 REVENUES OVER (UNDER) EXPENDITURES (190,000) (190,000) 156,447 346,447 OTHER FINANCING SOURCES (USES) Transfers in 150,000 150,000 150,000 - NET CHANGE IN FUND BALANCE (40,000) (40,000) 306,447 346,447 FUND BALANCE, beginning of year 40,000 40,000 135,001 95,001 FUND BALANCE, end of year - $ - $ 441,448 $ 441,448 $ Budget Amounts ---PAGE BREAK--- - 69 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - BUILDING INSPECTION FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Licenses and permits 660,000 $ 940,000 $ 997,888 $ 57,888 $ Intergovernmental 351,000 771,000 771,225 225 Miscellaneous 21,000 21,000 11,598 (9,402) Total Revenues 1,032,000 1,732,000 1,780,711 48,711 EXPENDITURES Building inspection 1,119,790 1,819,790 1,504,267 315,523 Contingency 779,100 779,100 - 779,100 Total Expenditures 1,898,890 2,598,890 1,504,267 1,094,623 NET CHANGE IN FUND BALANCE (866,890) (866,890) 276,444 1,143,334 FUND BALANCE, beginning of year 866,890 866,890 1,169,986 303,096 FUND BALANCE, end of year - $ - $ 1,446,430 $ 1,446,430 $ Budget Amounts ---PAGE BREAK--- - 70 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – ASSET FORFEITURE FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Miscellaneous 320 $ 320 $ 135 $ (185) $ EXPENDITURES Asset forfeiture 15,000 15,000 - 15,000 NET CHANGE IN FUND BALANCE (14,680) (14,680) 135 14,815 FUND BALANCE, beginning of year 14,680 14,680 15,132 452 FUND BALANCE, end of year - $ - $ 15,267 $ 15,267 $ Budget Amounts ---PAGE BREAK--- - 71 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - HOUSING REHABILITATION FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Miscellaneous 23,000 $ 23,000 $ 31,157 $ 8,157 $ EXPENDITURES Housing rehab 20,660 434,570 416,608 17,962 Contingency 413,910 - - - Total Expenditures 434,570 434,570 416,608 17,962 NET CHANGE IN FUND BALANCE (411,570) (411,570) (385,451) 26,119 FUND BALANCE, beginning of year 411,570 411,570 411,430 (140) FUND BALANCE, end of year - $ - $ 25,979 $ 25,979 $ Budget Amounts ---PAGE BREAK--- - 72 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LAVELLE BLACK TRUST FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Miscellaneous 1,000 $ 1,000 $ 312 $ (688) $ EXPENDITURES Materials and services 20,000 20,000 2,172 17,828 Contingency 19,010 19,010 - 19,010 Total Expenditures 39,010 39,010 2,172 36,838 NET CHANGE IN FUND BALANCE (38,010) (38,010) (1,860) 36,150 FUND BALANCE, beginning of year 38,010 38,010 35,171 (2,839) FUND BALANCE, end of year - $ - $ 33,311 $ 33,311 $ Budget Amounts ---PAGE BREAK--- - 73 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – URBAN RENEWAL FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Taxes and assessments 805,000 $ 805,000 $ 769,763 $ (35,237) $ Intergovernmental - 100,000 77,846 (22,154) Miscellaneous 25,000 25,000 16,085 (8,915) Total Revenues 830,000 930,000 863,694 (66,306) EXPENDITURES Administration Personal services 208,050 208,050 203,305 4,745 Materials and services 297,940 297,940 54,474 243,466 Capital outlay 720,000 820,000 104,126 715,874 Debt service Principal 262,000 262,000 262,000 - Interest 73,130 73,130 73,128 2 Contingency 92,140 92,140 - 92,140 Total Expenditures 1,653,260 1,753,260 697,033 1,056,227 NET CHANGE IN FUND BALANCE (823,260) (823,260) 166,661 989,921 FUND BALANCE, beginning of year 1,123,260 1,123,260 1,354,312 231,052 FUND BALANCE, end of year 300,000 $ 300,000 $ 1,520,973 $ 1,220,973 $ Budget Amounts ---PAGE BREAK--- - 74 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Intergovernmental 1,800,000 $ 1,800,000 $ 1,844,687 $ 44,687 $ EXPENDITURES Capital outlay 1,969,700 1,969,700 1,874,493 95,207 REVENUES OVER (UNDER) EXPENDITURES (169,700) (169,700) (29,806) 139,894 OTHER FINANCING SOURCES (USES) Transfers out (285,350) (285,350) - 285,350 NET CHANGE IN FUND BALANCE (455,050) (455,050) (29,806) 425,244 FUND BALANCE, beginning of year 455,050 455,050 255,105 (199,945) FUND BALANCE, end of year - $ - $ 225,299 $ 225,299 $ Budget Amounts ---PAGE BREAK--- - 75 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SPECIAL ASSESSMENT FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Miscellaneous 3,650 $ 3,650 $ 4,977 $ 1,327 $ EXPENDITURES Contingency 33,050 33,050 - 33,050 NET CHANGE IN FUND BALANCE (29,400) (29,400) 4,977 34,377 FUND BALANCE, beginning of year 29,400 29,400 29,978 578 FUND BALANCE, end of year - $ - $ 34,955 $ 34,955 $ Budget Amounts ---PAGE BREAK--- - 76 - 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, 2021 Original Final Actual Variance REVENUES Intergovernmental 2,300,000 $ 2,300,000 $ - $ (2,300,000) $ Miscellaneous 190,000 190,000 53,757 (136,243) Total Revenues 2,490,000 2,490,000 53,757 (2,436,243) EXPENDITURES Capital outlay 5,850,000 5,850,000 241,881 5,608,119 REVENUES OVER (UNDER) EXPENDITURES (3,360,000) (3,360,000) (188,124) 3,171,876 OTHER FINANCING SOURCES (USES) Transfers in 3,035,460 3,035,460 - (3,035,460) NET CHANGE IN FUND BALANCE (324,540) (324,540) (188,124) 136,416 FUND BALANCE, beginning of year 324,540 324,540 785,440 460,900 FUND BALANCE, end of year - $ - $ 597,316 $ 597,316 $ Budget Amounts ---PAGE BREAK--- - 77 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – PARKS SDC FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Licenses and permits 400,000 $ 400,000 $ 1,114,193 $ 714,193 $ Miscellaneous 12,000 12,000 9,290 (2,710) Total Revenues 412,000 412,000 1,123,483 711,483 EXPENDITURES - - - - NET CHANGE IN FUND BALANCE 412,000 412,000 1,123,483 711,483 FUND BALANCE, beginning of year 593,050 593,050 713,259 120,209 FUND BALANCE, end of year 1,005,050 $ 1,005,050 $ 1,836,742 $ 831,692 $ Budget Amounts ---PAGE BREAK--- - 78 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STREET SDC FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Licenses and permits 400,000 $ 400,000 $ 1,306,966 $ 906,966 $ Miscellaneous 85,000 85,000 37,587 (47,413) Total Revenues 485,000 485,000 1,344,553 859,553 EXPENDITURES Materials and services 50,000 50,000 45,345 4,655 REVENUES OVER (UNDER) EXPENDITURES 435,000 435,000 1,299,208 864,208 OTHER FINANCING SOURCES (USES) Transfers out (1,000,000) (1,000,000) - 1,000,000 NET CHANGE IN FUND BALANCE (565,000) (565,000) 1,299,208 1,864,208 FUND BALANCE, beginning of year 3,405,450 3,405,450 3,822,980 - FUND BALANCE, end of year 2,840,450 $ 2,840,450 $ 5,122,188 $ 1,864,208 $ Budget Amounts ---PAGE BREAK--- - 79 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STORM SDC FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Licenses and permits 25,000 $ 25,000 $ 63,559 $ 38,559 $ Miscellaneous 15,000 15,000 6,642 (8,358) Total Revenues 40,000 40,000 70,201 30,201 OTHER FINANCING SOURCES (USES) Transfers out (140,000) (140,000) - 140,000 NET CHANGE IN FUND BALANCE (100,000) (100,000) 70,201 170,201 FUND BALANCE, beginning of year 704,130 704,130 708,817 4,687 FUND BALANCE, end of year 604,130 $ 604,130 $ 779,018 $ 174,888 $ Budget Amounts ---PAGE BREAK--- - 80 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – EQUIPMENT REPLACEMENT FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Miscellaneous 13,000 $ 13,000 $ 6,833 $ (6,167) $ EXPENDITURES Capital outlay 880,660 880,660 81,795 798,865 REVENUES OVER (UNDER) EXPENDITURES (867,660) (867,660) (74,962) 792,698 OTHER FINANCING SOURCES (USES) Transfers in 150,000 150,000 150,000 - NET CHANGE IN FUND BALANCE (717,660) (717,660) 75,038 792,698 FUND BALANCE, beginning of year 717,660 717,660 719,161 1,501 FUND BALANCE, end of year - $ - $ 794,199 $ 794,199 $ Budget Amounts ---PAGE BREAK--- - 81 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GO DEBT SERVICE FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Taxes and assessments 565,700 $ 565,700 $ 575,894 $ 10,194 $ Miscellaneous 3,300 3,300 2,292 (1,008) Total Revenues 569,000 569,000 578,186 9,186 EXPENDITURES Debt service Principal 540,000 540,000 539,000 1,000 Interest 50,000 50,000 47,861 2,139 Total Expenditures 590,000 590,000 586,861 3,139 NET CHANGE IN FUND BALANCE (21,000) (21,000) (8,675) 12,325 FUND BALANCE, beginning of year 21,000 21,000 32,604 11,604 FUND BALANCE, end of year - $ - $ 23,929 $ 23,929 $ Budget Amounts ---PAGE BREAK--- - 82 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – WATER OPERATIONS COMBINING YEAR ENDED JUNE 30, 2021 Water Water SDC Water Capital Construction Total Water Operations REVENUES Charges for services 4,330,970 $ - $ - $ 4,330,970 $ Licenses and permits - 1,038,064 - 1,038,064 Miscellaneous 56,411 - - 56,411 Interest earnings 24,401 20,130 13,908 58,439 Total Revenues 4,411,782 1,058,194 13,908 5,483,884 EXPENDITURES Water 2,749,291 - - 2,749,291 Debt service Principal 1,402,000 - - 1,402,000 Interest 161,435 - - 161,435 Capital outlay - - 780,303 780,303 Total Expenses 4,312,726 - 780,303 5,093,029 REVENUES OVER (UNDER) EXPENDITURES 99,056 1,058,194 (766,395) 390,855 OTHER FINANCING SOURCES (USES) Transfers out (50,000) - - (50,000) NET CHANGE IN FUND BALANCE 49,056 1,058,194 (766,395) 340,855 FUND BALANCE, beginning of year 2,446,739 1,962,819 1,666,621 6,076,179 FUND BALANCE, end of year 2,495,795 $ 3,021,013 $ 900,226 $ 6,417,034 RECONCILIATION TO NET POSITION- GAAP BASIS Capital assets, net 11,254,111 OPEB asset 9,177 Deferred outflows related to PERS 540,258 Deferred outflows related to OPEB 10,511 Deferred charges on refunding 699 Compensated absences (31,372) Accrued interest payable (11,156) Net pension liability (1,261,710) OPEB liability (66,583) Long-term debt (4,790,000) Deferred inflows related to PERS (253,851) Deferred inflows related to OPEB (14,144) NET POSITION - GAAP BASIS 11,802,974 $ ---PAGE BREAK--- - 83 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL - WATER FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Charges for services 3,982,000 $ 3,982,000 $ 4,330,970 $ 348,970 $ Miscellaneous 55,520 55,520 56,411 891 Interest earnings 65,480 65,480 24,401 (41,079) Total Revenues 4,103,000 4,103,000 4,411,782 308,782 EXPENDITURES Water 2,761,640 2,761,640 2,749,291 12,349 Debt service Principal 1,402,000 1,402,000 1,402,000 - Interest 161,430 161,430 161,435 Contingency 162,080 162,080 - 162,080 Total Expenditures 4,487,150 4,487,150 4,312,726 174,424 REVENUES OVER (UNDER) EXPENDITURES (384,150) (384,150) 99,056 483,206 OTHER FINANCING SOURCES (USES) Transfers out (559,550) (559,550) (50,000) 509,550 Proceeds from sale of assets 2,000 2,000 - (2,000) Total Other Financing Sources (Uses) (557,550) (557,550) (50,000) 507,550 NET CHANGE IN FUND BALANCE (941,700) (941,700) 49,056 990,756 FUND BALANCE, beginning of year 2,250,000 2,250,000 2,446,739 196,739 FUND BALANCE, end of year 1,308,300 $ 1,308,300 $ 2,495,795 $ 1,187,495 $ Budget Amounts ---PAGE BREAK--- - 84 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - WATER SDC FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Licenses and permits 200,000 $ 200,000 $ 1,038,064 $ 838,064 $ Interest earnings 40,000 40,000 20,130 (19,870) Total Revenues 240,000 240,000 1,058,194 818,194 EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES 240,000 240,000 1,058,194 818,194 OTHER FINANCING SOURCES (USES) Transfers out (800,000) (800,000) - 800,000 NET CHANGE IN FUND BALANCE (560,000) (560,000) 1,058,194 1,618,194 FUND BALANCE, beginning of year 1,841,430 1,841,430 1,962,819 121,389 FUND BALANCE, end of year 1,281,430 $ 1,281,430 $ 3,021,013 $ 1,739,583 $ Budget Amounts ---PAGE BREAK--- - 85 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – WATER CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Interest earnings 40,000 $ 40,000 $ 13,908 $ (26,092) $ EXPENDITURES Capital outlay 3,050,000 3,050,000 780,303 2,269,697 REVENUES OVER (UNDER) EXPENDITURES (3,010,000) (3,010,000) (766,395) 2,243,605 OTHER FINANCING SOURCES (USES) Transfers in 1,309,550 1,309,550 - (1,309,550) NET CHANGE IN FUND BALANCE (1,700,450) (1,700,450) (766,395) 934,055 FUND BALANCE, beginning of year 1,700,450 1,700,450 1,666,621 (33,829) FUND BALANCE, end of year - $ - $ 900,226 $ 900,226 $ Budget Amounts ---PAGE BREAK--- - 86 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – SEWER OPERATIONS COMBINING YEAR ENDED JUNE 30, 2021 Sewer Sewer SDC Sewer Capital Construction Eliminations Total Sewer Operations REVENUES Charges for services 8,410,701 $ - $ 2,513 $ - $ 8,413,214 $ Licenses and permits - 1,201,072 - - 1,201,072 Miscellaneous 4,878 - - - 4,878 Interest earnings 36,657 18,998 40,114 - 95,769 Total Revenues 8,452,236 1,220,070 42,627 - 9,714,933 EXPENDITURES Sewer 3,972,975 - - - 3,972,975 Debt service Principal - - - - - Interest 1,042,861 - - - 1,042,861 Capital outlay - - 1,070,809 - 1,070,809 Total Expenses 5,015,836 - 1,070,809 - 6,086,645 REVENUES OVER (UNDER) EXPENDITURES 3,436,400 1,220,070 (1,028,182) - 3,628,288 OTHER FINANCING SOURCES (USES) Transfers in 11,947,440 - 1,145,695 (13,093,135) - Transfers out (1,105,683) (180,012) (11,947,440) 13,093,135 (140,000) Payments to escrow agents (11,074,542) - - - (11,074,542) Total Other Financing Sources (Uses) (232,785) (180,012) (10,801,745) - (11,214,542) NET CHANGE IN FUND BALANCE 3,203,615 1,040,058 (11,829,927) - (7,586,254) FUND BALANCE, beginning of year 8,003,378 1,788,913 11,831,178 - 21,623,469 FUND BALANCE, end of year 11,206,993 $ 2,828,971 $ 1,251 $ - $ 14,037,215 RECONCILIATION TO NET POSITION- GAAP BASIS Capital assets, net 42,377,695 OPEB asset 13,397 Deferred outflows related to PERS 993,182 Deferred outflows related to OPEB 13,510 Compensated absences (30,598) Net pension liability (2,018,371) OPEB liability (83,068) Deferred inflows related to PERS (324,835) Deferred inflows related to OPEB (19,857) NET POSITION - GAAP BASIS 54,958,270 $ ---PAGE BREAK--- - 87 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - SEWER FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Charges for services 8,220,000 $ 8,220,000 $ 8,410,701 $ 190,701 $ Miscellaneous 3,270 3,270 4,878 1,608 Interest earnings 200,000 200,000 36,657 (163,343) Total Revenues 8,423,270 8,423,270 8,452,236 28,966 EXPENDITURES Sewer 4,414,460 4,414,460 3,972,975 441,485 Debt service Interest - - 1,042,861 (1,042,861) * Contingency 882,000 882,000 - 882,000 Total Expenditures 5,296,460 5,296,460 5,015,836 280,624 REVENUES OVER (UNDER) EXPENDITURES 3,126,810 3,126,810 3,436,400 309,590 OTHER FINANCING SOURCES (USES) Transfers in 11,947,440 11,947,440 11,947,440 - Transfers out (7,010,570) (7,010,570) (1,105,683) 5,904,887 Payments to escrow agents (13,500,000) (13,500,000) (11,074,542) 2,425,458 Total Other Financing Sources (Uses) (8,563,130) (8,563,130) (232,785) 8,330,345 NET CHANGE IN FUND BALANCE (5,436,320) (5,436,320) 3,203,615 8,639,935 FUND BALANCE, beginning of year 8,252,660 8,252,660 8,003,378 (249,282) FUND BALANCE, end of year 2,816,340 $ 2,816,340 $ 11,206,993 $ 8,390,653 $ Budget Amounts *Payment on interest related to defeasance is not an overexpenditure of appropriations. ---PAGE BREAK--- - 88 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - SEWER SDC FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Licenses and permits 200,000 $ 200,000 $ 1,201,072 $ 1,001,072 $ Interest earnings 40,000 40,000 18,998 (21,002) Total Revenues 240,000 240,000 1,220,070 980,070 EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES 240,000 240,000 1,220,070 980,070 OTHER FINANCING SOURCES (USES) Transfers out (2,089,430) (2,089,430) (180,012) 1,909,418 NET CHANGE IN FUND BALANCE (1,849,430) (1,849,430) 1,040,058 2,889,488 FUND BALANCE, beginning of year 1,849,430 1,849,430 1,788,913 $ (60,517) FUND BALANCE, end of year - $ - $ 2,828,971 $ 2,828,971 $ Budget Amounts ---PAGE BREAK--- - 89 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SEWER CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Charges for services - $ - $ 2,513 $ 2,513 $ Interest earnings 100,000 100,000 40,114 (59,886) Total Revenues 100,000 100,000 42,627 (57,373) EXPENDITURES Capital outlay 8,960,000 8,960,000 1,070,809 7,889,191 REVENUES OVER (UNDER) EXPENDITURES (8,860,000) (8,860,000) (1,028,182) 7,831,818 OTHER FINANCING SOURCES (USES) Transfers in 8,960,000 8,960,000 1,145,695 (7,814,305) Transfers out (11,947,440) (11,947,440) (11,947,440) - Total Other Financing Sources (Uses) (2,987,440) (2,987,440) (10,801,745) (7,814,305) NET CHANGE IN FUND BALANCE (11,847,440) (11,847,440) (11,829,927) 17,513 FUND BALANCE, beginning of year 11,847,440 11,847,440 11,831,178 (16,262) FUND BALANCE, end of year - $ - $ 1,251 $ 1,251 $ Budget Amounts ---PAGE BREAK--- - 90 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF FUND NET POSITION - INTERNAL SERVICE FUNDS JUNE 30, 2021 Information Technology Insurance Total ASSETS Current Assets Cash and investments 449,575 $ 749,490 $ 1,199,065 $ Accounts receivable 27,711 59,102 86,813 Total Current Assets 477,286 808,592 1,285,878 Noncurrent Assets OPEB Asset 2,681 407 3,088 Total Assets 479,967 808,999 1,288,966 DEFERRED OUTFLOWS Deferred outflows related to PERS 248,210 33,851 282,061 Deferred outflows related to OPEB 3,026 417 3,443 251,236 34,268 285,504 LIABILITIES Current Liabilities Accounts payable 51,726 5,102 56,828 Due to other funds 14,346 2,625 16,971 Accrued compensated absences 14,914 - 14,914 Total Current Liabilities 80,986 7,727 88,713 Noncurrent Liabilities Accrued compensated absences 22,372 - 22,372 Net pension liability 503,489 66,585 570,074 OPEB liability 18,867 2,541 21,408 Total Noncurrent Liabilities 544,728 69,126 613,854 Total Liabilities 625,714 76,853 702,567 DEFERRED INFLOWS Deferred inflows related to PERS 70,460 9,551 80,011 Deferred inflows related to OPEB 4,002 550 4,552 74,462 10,101 84,563 NET POSITION Unrestricted 31,027 $ 756,313 $ 787,340 $ ---PAGE BREAK--- - 91 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2021 Information Technology Insurance Total OPERATING REVENUES Charges for services 1,186,995 $ 726,000 $ 1,912,995 $ Miscellaneous 1,046 306 1,352 Total Operating Revenues 1,188,041 726,306 1,914,347 OPERATING EXPENSES Personal services 537,896 78,912 616,808 Materials and services 551,851 549,811 1,101,662 Capital outlay - - - Total Expenses 1,089,747 628,723 1,718,470 OPERATING INCOME 98,294 97,583 195,877 NONOPERATING REVENUES (EXPENSES) Investment revenue 2,605 4,333 6,938 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 100,899 101,916 202,815 Non-cash transfers out (168,226) - (168,226) CHANGE IN NET POSITION (67,327) 101,916 34,589 NET POSITION, beginning of year 98,354 654,397 752,751 NET POSITION, end of year 31,027 $ 756,313 $ 787,340 $ ---PAGE BREAK--- - 92 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2021 Information Technology Insurance Totals CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 1,170,054 $ 667,204 $ 1,837,258 $ Paid to suppliers (507,573) (546,733) (1,054,306) Paid to employees (478,581) (68,981) (547,562) Net Cash Provided by Operating Activities 183,900 51,490 235,390 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Received from (paid to) other funds (3,165) (12) (3,177) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (168,226) - (168,226) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 2,605 4,333 6,938 Increase in Cash and Investments 15,114 55,811 70,925 CASH AND INVESTMENTS, Beginning of year 434,461 693,679 1,128,140 CASH AND INVESTMENTS, End of year 449,575 $ 749,490 $ 1,199,065 $ RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income 98,294 $ 97,583 $ 195,877 $ Change in assets and liabilities Accounts receivable (17,987) (59,102) (77,089) Deferred outflows 14,828 2,103 16,931 OPEB asset 1,708 242 1,950 Compensated absences payable (10,684) - (10,684) Accounts payable and accrued liabilities 44,278 3,078 47,356 Net pension liability 37,430 5,311 42,741 OPEB liability (214) (31) (245) Deferred inflows 16,247 2,306 18,553 Net Cash Provided by Operating Activities 183,900 $ 51,490 $ 235,390 $ Noncash Transactions Transfer of capital assets - $ - $ - $ ---PAGE BREAK--- - 93 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – INFORMATION TECHNOLOGY FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Charges for services 1,179,790 $ 1,179,790 $ 1,186,995 $ 7,205 $ Miscellaneous 6,570 6,570 1,046 (5,524) Interest earnings 8,200 8,200 2,605 (5,595) Total Revenues 1,194,560 1,194,560 1,190,646 (3,914) EXPENDITURES Information technology 1,332,000 1,332,000 1,198,658 133,342 Contingency 215,860 215,860 - 215,860 Total Expenditures 1,547,860 1,547,860 1,198,658 349,202 NET CHANGE IN FUND BALANCE (353,300) (353,300) (8,012) 345,288 FUND BALANCE, beginning of year 403,300 403,300 419,226 15,926 FUND BALANCE, end of year 50,000 $ 50,000 $ 411,214 361,214 $ RECONCILIATION TO NET POSITION - GAAP BASIS OPEB asset 2,681 Deferred outflows related to PERS 248,210 Deferred outflows related to OPEB 3,026 Accrued compensated absences (37,286) Net pension liability (503,489) OPEB liability (18,867) Deferred inflows related to PERS (70,460) Deferred inflows related to OPEB (4,002) NET POSITION, GAAP BASIS 31,027 $ Budget Amounts ---PAGE BREAK--- - 94 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – INSURANCE FUND YEAR ENDED JUNE 30, 2021 Original Final Actual Variance REVENUES Charges for services 726,000 $ 726,000 $ 726,000 $ - $ Miscellaneous 4,490 4,490 305 (4,185) Interest earnings 6,000 6,000 4,332 (1,668) Total Revenues 736,490 736,490 730,637 (5,853) EXPENDITURES Insurance 847,760 847,760 618,790 228,970 Contingency 515,960 515,960 - 515,960 Total Expenditures 1,363,720 1,363,720 618,790 744,930 NET CHANGE IN FUND BALANCE (627,230) (627,230) 111,847 739,077 FUND BALANCE, beginning of year 627,230 627,230 689,018 61,788 FUND BALANCE, end of year - $ - $ 800,865 800,865 $ RECONCILIATION TO NET POSITION - GAAP BASIS OPEB asset 407 Deferred outflows related to PERS 33,851 Deferred outflows related to OPEB 417 Net pension liability (66,585) OPEB liability (2,541) Deferred inflows related to PERS (9,551) Deferred inflows related to OPEB (550) NET POSITION, GAAP BASIS 756,313 $ Budget Amounts ---PAGE BREAK--- STATISTICAL SECTION ---PAGE BREAK--- - 95 - 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--- - 96 - CITY OF WOODBURN, OREGON NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Governmental activities Net investment in capital assets 54,443,478 $ 54,361,481 $ 55,195,632 $ 59,266,063 $ 58,326,049 $ 57,813,459 $ 57,789,283 $ 58,807,325 $ 64,447,990 $ 66,566,868 $ Restricted 9,460,498 10,395,999 11,523,032 8,929,025 9,815,650 10,660,016 11,651,202 13,987,334 12,238,720 16,222,715 Unrestricted 6,455,591 6,938,395 6,224,832 4,583,134 923,456 766,265 1,979,126 2,085,955 3,127,228 2,749,034 Total governmental activities net position 70,359,567 $ 71,695,875 $ 72,943,496 $ 72,778,222 $ 69,065,155 $ 69,239,740 $ 71,419,611 $ 74,880,614 $ 79,813,938 $ 85,538,617 $ Business-type activities Net investment in capital assets 31,042,855 $ 31,886,659 $ 19,913,747 $ 21,979,780 $ 23,737,493 $ 37,312,451 $ 42,991,874 $ 43,073,472 $ 46,922,723 $ 48,842,505 $ Restricted for: Construction 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 6,751,461 Unrestricted 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) 11,167,278 Total business-type activities net position 41,206,320 $ 42,256,488 $ 43,317,833 $ 45,984,455 $ 47,382,702 $ 49,927,559 $ 53,302,675 $ 56,737,254 $ 60,481,399 $ 66,761,244 $ Primary government Net investment in capital assets 85,486,333 $ 86,248,140 $ 75,109,379 $ 81,245,843 $ 82,063,542 $ 95,125,910 $ 100,781,157 $ 101,880,797 $ 111,370,713 $ 115,409,373 $ Restricted 10,396,268 13,561,302 30,260,374 25,770,136 26,550,917 27,295,596 28,656,063 31,069,067 29,488,251 22,974,176 Unrestricted 15,683,286 14,142,921 10,891,576 11,746,698 7,833,398 (3,254,207) (4,714,934) (1,331,996) (563,627) 13,916,312 Total primary government net position 111,565,887 $ 113,952,363 $ 116,261,329 $ 118,762,677 $ 116,447,857 $ 119,167,299 $ 124,722,286 $ 131,617,868 $ 140,295,337 $ 152,299,861 $ ---PAGE BREAK--- - 97 - CITY OF WOODBURN, OREGON CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) Expenses 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Governmental activities: General government 2,116,264 $ 2,411,067 $ 2,646,552 $ 3,058,648 $ 5,114,971 $ 2,676,477 $ 2,740,778 $ 1,162,602 $ 4,673,660 $ 2,547,469 $ Public safety 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 8,934,202 Highways and streets 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 2,525,497 Culture and recreation 4,019,379 3,270,803 3,530,783 2,784,248 3,481,264 2,980,178 2,799,066 4,226,653 4,139,885 3,753,726 Economic development - - - - - 829,477 1,139,732 2,023,962 2,025,642 3,021,707 Interest on long-term debt 257,018 248,109 226,504 204,905 183,342 169,933 108,133 76,949 59,907 46,781 Total governmental activities expenses 15,328,716 14,982,206 15,285,501 13,686,483 20,702,005 16,888,502 16,913,244 17,965,438 19,994,411 20,829,382 Business-type activities: Water 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 3,316,914 Sewer 5,270,139 5,713,504 6,711,162 5,302,994 6,728,773 5,629,532 5,643,125 5,649,231 5,767,483 4,856,593 Total business-type activities expenses 8,171,243 8,595,560 9,503,980 7,781,688 10,032,299 8,515,359 8,760,865 8,661,863 8,447,093 8,173,507 Total primary government expenses 23,499,959 $ 23,577,766 $ 24,789,481 $ 21,468,171 $ 30,734,304 $ 25,403,861 $ 25,674,109 $ 26,627,301 $ 28,441,504 $ 29,002,889 $ Program Revenues Governmental activities: Charges for services: General government 266,789 $ 733,090 $ 682,238 $ 649,703 $ 978,244 $ 660,502 $ 1,263,142 $ 91,987 $ 243,805 $ 291,774 $ Public safety 874,614 715,743 627,424 716,467 93,443 113,331 120,152 272,432 243,369 137,642 Highways and streets 490,640 106,604 274,205 6,188 22,519 1,104 7,533 945 2,275 50,622 Culture and recreation 689,937 574,513 517,400 571,921 705,415 565,889 557,725 774,081 573,205 166,835 Economic development - - - - - 457,432 403,044 1,307,278 1,579,828 2,349,952 Operating grants and contributions 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 2,682,578 Capital grants and contributions 522,817 840,242 885,093 1,286,163 350,449 266,679 502,857 934,723 2,506,331 5,372,006 Total governmental activities program revenues 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 11,051,409 Business-type activities: Charges for services: Water 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 4,330,970 Sewer 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 8,413,214 Capital grants and contributions 437,817 290,930 446,971 310,272 307,152 114,664 438,189 376,165 425,801 2,239,137 Total business-type activities program revenues 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 14,983,321 Total primary government program revenues 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 $ 26,034,730 $ ---PAGE BREAK--- - 98 - CITY OF WOODBURN, OREGON CHANGES IN NET POSITION (Continued) LAST TEN FISCAL YEARS (accrual basis of accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net(expense)/revenue Governmental activities (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) $ (9,777,973) $ Business-type activities 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 6,809,814 Total primary government net expense (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) $ (2,968,159) $ General Revenues and Other Changes in Net Position Governmental activities: Property taxes 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 $ 11,169,801 $ Franchise taxes 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 1,676,564 Other taxes - - 454,363 437,339 550,346 547,220 712,127 595,650 491,023 596,829 Unrestricted investment earnings 46,992 122,672 96,347 99,620 105,901 200,736 354,201 632,056 517,897 211,337 Intergovernmental 533,738 660,547 633,530 655,575 649,350 702,990 728,991 831,319 903,481 975,321 Miscellaneous 252,164 170,119 117,872 28,620 163,827 101,908 304,920 120,782 32,117 117,092 Gain on sale of capital assets - (69,877) - 49,948 13,241 25,148 298,208 11,060 10,241 Transfers in (out) 711,000 333,578 663,841 680,212 688,937 650,141 364,299 979,533 1,040,253 745,467 Total governmental activities 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 15,502,652 Business-type activities: Unrestricted investment earnings 67,709 109,942 125,139 122,988 159,067 283,101 454,022 713,164 622,056 154,209 Miscellaneous 462 66,445 302,251 67,461 68,059 86,136 56,386 60,171 71,002 61,289 Gain on sale of capital assets 5,892 1,300 - - - 3,505 10,613 62,922 - - Transfers in (out) (711,000) (333,578) (663,841) (680,212) (688,937) (650,141) (364,299) (979,533) (1,040,253) (745,467) Total business-type activities (636,937) (155,891) (236,451) (489,763) (461,811) (277,399) 156,722 (143,276) (347,195) (529,969) Total primary government 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 $ 14,972,683 $ Change in Net Position Governmental activities 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 $ 5,724,679 $ Business-type activities 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 6,279,845 Total primary government 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 $ 12,004,524 $ ---PAGE BREAK--- - 99 - CITY OF WOODBURN, OREGON FUND BALANCE OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (accrual basis of accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General fund Nonspendable - $ 1,470 $ 740 $ 1,467 $ 936 $ 3,064 $ 18,230 $ 31,972 $ 23,390 $ 24,888 $ Committed - - - - - - - 1,678,280 - - Unassigned 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 8,521,253 Total general fund 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 $ 8,546,141 $ All other governmental funds Nonspendable - $ - $ - $ - $ - $ - $ - $ - $ 3,300 $ 3,300 $ Restricted 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 15,719,615 Committed 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 2,290,851 Total other governmental funds 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 $ 18,013,766 $ ---PAGE BREAK--- - 100 - CITY OF WOODBURN, OREGON CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (accrual basis of accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenues Taxes and assessments 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 $ 11,774,892 $ Licenses and permits 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 5,673,817 Charges for services 681,414 1,008,368 901,197 1,351,102 1,364,684 1,260,038 1,153,372 1,422,284 930,786 477,163 Intergovernmental 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 7,312,012 Fines & forfeitures 734,377 589,574 571,831 673,377 426,867 420,305 395,164 343,790 352,400 667,444 Miscellaneous 542,192 316,536 540,782 454,140 683,371 562,957 784,799 1,193,261 1,306,767 822,465 Total revenues 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 26,727,793 Expenditures Current General government 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 2,317,327 Public safety 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 3,186,762 Highways and streets 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 7,708,918 Culture and recreation 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 1,499,613 Economic development - - - - - - - 1,965,382 4,028,407 3,090,165 Capital outlay 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 2,347,640 Debt service Principal 507,785 526,296 560,172 584,429 436,479 400,399 456,675 516,000 1,303,000 1,348,000 Interest 268,897 249,237 228,861 206,832 185,327 169,937 117,094 70,208 174,881 148,437 Total expenditures 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 21,646,862 Excess of revenues over (under) expenditures 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) 5,080,931 Other financing sources (uses) Proceeds from sale of capital assets - - - - - 19,861 35,415 308,894 22,179 21,815 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 1,029,674 1,279,532 1,430,985 853,858 294,248 419,236 829,268 2,658,488 2,943,348 390,000 Transfers out (985,738) (1,180,842) (1,443,985) (823,259) (252,378) (374,656) (875,443) (2,457,828) (2,489,369) (200,000) Total other financing sources (uses) 43,936 98,690 (13,000) 30,599 41,870 64,441 39,126 5,109,554 476,158 211,815 Net change in fund balances 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) 5,292,746 Fund balances at beginning of year 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 21,267,161 Fund balances at end of year 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 $ 26,559,907 $ Debt service as a percentage of noncapital expenditures 5.7% 5.9% 5.7% 4.6% 4.0% 3.7% 3.7% 3.4% 7.1% 7.8% ---PAGE BREAK--- REVENUE CAPACITY ---PAGE BREAK--- - 101 - 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 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% 2021 1,008,494,619 1,001,800 461,377,890 151,870,950 69,785,848 51,814,596 1,744,345,703 6.0534 2,669,427,103 3,026,488,916 57.636% Source: Marion County Assessor's Office (Schedule 5) ---PAGE BREAK--- - 102 - 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 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 2021 6.68 2.94 0.05 0.05 2.07 6.87 0.29 0.88 0.08 19.90 Source: Marion County Assessor's Office Tax rates expressed in dollars and cents per $1,000 of assessed value of taxable property ---PAGE BREAK--- - 103 - 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% 67,741,865 $ 1 3.50% Woodburn Premium Outlets LLC 70,264,829 2 2.99% Food Services of America Inc 29,901,360 3 1.27% 26,768,810 3 1.38% Wal-Mart Real Estate Business TR 17,791,840 5 0.76% 14,305,600 6 0.74% Hardware Wholesalers Inc 17,068,670 6 0.73% 14,722,700 4 0.76% Portland General Electric Co 15,572,783 4 0.66% 14,416,440 5 0.74% Cascade Meadow LLC 14,702,400 7 0.63% 11,606,240 7 0.60% Crown 2 Development LLC 13,144,580 8 0.56% 10,376,480 8 0.54% Northwest Natural Gas Co 13,028,000 9 0.55% 9,877,600 9 0.51% Pacific Realty Associates LP 10,637,480 10 0.45% Craig Realty Group Woodburn 50,614,890 2 2.61% Mid-Valley Plaza LLC 9,849,190 10 0.51% Subtotal 276,954,140 11.80% 230,279,815 11.88% All Other 2,070,981,163 88.20% 1,707,334,964 88.11% Totals 2,347,935,303 $ 100.0% 1,937,614,779 $ 100.0% Source: Marion County Assessor's Office 2012 2021 ---PAGE BREAK--- - 104 - 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 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% 2021 11,474,255 10,946,941 95.40% 226,240 11,173,181 97.38% 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--- - 105 - CITY OF WOODBURN, OREGON RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Fiscal Year Full Faith & Credit Bonds Loans Bonds Loans Bond Premiums Total Outstanding Debt Percentage of Personal Income Population Debt Per Capita 2012 5,365,000 $ 868,449 $ 39,810,720 $ 5,910,647 $ 2,694,009 $ 54,648,825 $ 5.32% 24,090 2,269 2013 5,065,000 642,154 37,674,655 5,559,833 2,624,932 51,566,574 4.94% 24,090 2,141 2014 4,745,000 401,982 35,126,768 5,194,240 2,555,855 48,023,845 4.50% 24,330 1,974 2015 4,410,000 152,553 32,082,220 4,813,265 2,210,469 43,668,507 4.09% 24,455 1,786 2016 4,060,000 66,074 29,302,005 4,416,251 2,072,315 39,916,645 3.59% 24,670 1,618 2017 3,690,000 35,675 26,384,767 4,002,523 1,934,160 36,047,125 3.37% 24,795 1,454 2018 3,328,000 - 22,893,978 3,571,377 1,796,006 31,589,361 2.89% 24,685 1,280 2019 2,812,000 4,600,000 22,158,072 - 1,657,852 31,227,924 2.86% 24,760 1,265 2020 2,301,000 3,808,000 18,786,241 - 1,519,698 26,414,939 2.42% 25,135 1,070 2021 1,762,000 2,999,000 4,790,100 - - 9,551,100 0.82% 26,250 386 Personal income is disclosed on pg 110 Source: Portland State University Population Research Center Governmental Activities Business-Type Activities ---PAGE BREAK--- - 106 - CITY OF WOODBURN, OREGON RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS 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 2021 26,250 1,744,345,703 1,762,000 23,929 1,738,071 0.10% 67 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--- - 107 - CITY OF WOODBURN, OREGON DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT JUNE 30, 2021 Percent City's Total Within Pro Rata Net Debt City Share Direct: City of Woodburn 2,415,000 $ * 100% 2,415,000 $ Overlapping: Chemeketa Community College 104,085,992 4.05% 4,212,256 Marion County 12,008,957 5.90% 708,108 Marion Cty SD 103 (Woodburn) 75,365,000 85.20% 64,211,055 Willamette ESD 6,845,261 3.68% 252,193 Woodburn RFPD 6 395,000 71.56% 282,679 Total overlapping 198,700,210 69,666,291 TOTAL 201,115,210 $ 72,081,291 $ Source: Debt Management Division, Oregon State Treasury Excluding Revenue Bonds and Urban Renewal Loan Jurisdiction Overlapping governments are those with taxing boundaries that intersect with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Woodburn. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. ---PAGE BREAK--- - 108 - CITY OF WOODBURN, OREGON LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Debt Limit 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 $ 90,794,667 $ Total net debt applicable to limit 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 1,762,000 Legal debt margin* 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 $ 89,032,667 $ Total net debt applicable to the limit as a percentage of debt limit 9.67% 9.61% 9.03% 7.63% 6.58% 5.57% 4.57% 3.51% 2.63% 1.94% *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--- - 109 - 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 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 2021 7,267 5,469,975 2,749,290 2,720,685 174% 1,402,000 161,435 9,714,934 4,062,974 5,651,960 542% - 1,042,861 City of Woodburn Financial System City of Woodburn Debt Service Schedules **Debt service excludes principal and interest on refunded or defeased debt Water Revenue Bonds Debt Service Sewer Revenue Bonds Debt Service ---PAGE BREAK--- DEMOGRAPHIC AND ECONOMIC INFORMATION ---PAGE BREAK--- - 110 - CITY OF WOODBURN, OREGON DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year Population Total personal income Per capita personal income Median age Unemployment rate School Enrollment K-12 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 2021 26,250 1,314,941,250 50,093 33.9 5.4% 5,634 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--- - 111 - CITY OF WOODBURN, OREGON PRINCIPAL EMPLOYERS CURRENT YEAR AND TEN YEARS AGO Employer Employees Rank Percentage of total city employment Employees Rank Percentage of total city employment Winco Foods 550-600 1 5.25% 450-500 2 5.54% Woodburn School District 550-550 2 4.73% 750-800 1 9.03% US Foods 450-500 3 4.36% 450-500 3 5.54% Bruce Packing Co., Inc. 350-400 4 3.42% 150-200 8 2.04% MacLaren YCF 350-400 5 3.27% - - - Wal Mart Associates Inc 250-300 6 2.62% 300-350 4 3.79% Fleetwood Homes Inc. 200-250 7 1.80% 50-100 15 0.87% Kerr Contractors Oregon Inc. 150-200 8 1.59% 100-150 9 1.46% Fjord LLC 150-200 9 1.40% - - - City of Woodburn 150-200 10 1.36% 200-250 6 2.62% RMZ Labor Contractor LLC 150-200 11 1.34% - - 0.00% Al's Garden Centers & Greenhouses 100-150 12 1.21% 100-150 10 1.46% Do It Best Corp 100-150 13 1.20% 50-100 17 0.87% Safeway Stores, Inc. 100-150 14 1.14% 100-150 12 1.46% Woodburn Nursery & Azaleas Inc 100-150 15 1.10% - - - Nike Retail Services, Inc. 100-150 16 1.09% 50-100 16 0.87% Oregon Child Development Coalition 100-150 17 1.04% 100-150 11 1.46% Dominguez Labor Contractor Inc 100-150 18 1.03% - - - Wave 100-150 19 1.02% 25-50 28 0.44% Salud Medical Center 100-150 20 0.94% 100-150 13 1.46% A & R Farm Labor LLC 100-150 21 0.88% - - - Universal Forest Products Woodburn LLC 50-100 22 0.84% 100-150 14 1.46% Woodburn Health Center 50-100 23 0.81% 50-100 18 0.87% Triplett Wellman Inc. 50-100 24 0.78% 25-50 30 0.44% Corona Farm Labor LLC 50-100 25 0.77% - - - District Office/Welcome Center 50-100 26 0.77% - - - Country Meadows Village LLC 50-100 27 0.70% 50-100 20 0.87% Speciality Polymers Inc 50-100 28 0.65% 25-50 29 0.44% French Prairie Nursing & Rehab 50-100 29 0.64% - - - Gem Equipment of Oregon, Inc. 50-100 30 0.62% 50-100 19 0.87% Woodburn Mega Foods 50-100 31 0.62% 50-100 21 0.87% Wolfers Heathing and Air Conditioning 50-100 32 0.60% 25-50 32 0.44% United Pacific Forest Products 50-100 33 0.56% 25-50 31 0.44% Kerr Management Company Inc 50-100 34 0.52% - Townsend Farms, Inc 50-100 35 0.50% - - - TJX Co Inc. 50-100 36 0.45% - - - JAM Labor Services LLC 50-100 37 0.44% - Oregon Family Labor LLC 50-100 38 0.44% - - - The North Face 50-100 39 0.44% - - - Ashland Brothers Landscaping Inc 25-50 40 0.42% - - - Truss T Structures Inc 25-50 41 0.42% 25-50 34 0.44% United Disposal Service Inc 25-50 42 0.41% 50-100 22 0.87% Tree Top Inc 25-50 43 0.39% 25-50 36 0.44% Darigold Inc 25-50 44 0.38% - - - Greentree III Inc 25-50 45 0.38% - - - Heartwood Place 25-50 46 0.37% - - - Sanchez Valley Labor Contractor LLC 25-50 47 0.37% - - - Brother Farm Labor Contractor LLC 25-50 48 0.36% - - - Cascade Park Retirement Center 25-50 49 0.36% 50-100 23 0.87% Red Robin Gourmet Burgers & Brews 25-50 50 0.36% - - - Subtotal 6,843 57.16% 4,589 53.50% All Other 5,129 42.84% 3,989 46.50% Total 11,972 100.0% 8,578 100.0% 2021 2011 ---PAGE BREAK--- OPERATING INFORMATION ---PAGE BREAK--- - 112 - CITY OF WOODBURN, OREGON FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS Budgeted 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function General government 18.9 20.2 21.5 21.5 20.9 20.9 21.7 23.1 23.1 24.6 24.2 Public safety 40.5 40.0 39.6 41.1 42.6 42.7 43.6 43.6 43.6 45.8 46.8 Highways and streets 28.9 15.0 14.0 14.0 11.8 12.8 12.8 13.0 14 14 15 Culture and recreation 48.1 42.0 45.8 49.9 50.1 51.0 51.2 51.7 57.8 58.3 52.3 Economic development - - - - 1.0 0.5 1.0 1.0 0.9 0.9 0.9 Sewer 16.0 15.0 15.0 15.0 15.0 14.0 14.0 14.0 14 14 15 Water 9.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 10.5 10.5 10 Total 161.3 143.2 146.8 152.5 152.4 152.9 155.3 157.4 163.9 168.1 164.2 Source: Annual Adopted Budget Book and City Records Actual ---PAGE BREAK--- - 113 - CITY OF WOODBURN, OREGON OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Function Police Police calls 18,570 18,127 18,145 17,062 14,744 14,934 15,679 14,848 13,423 * Authorized staffing 32 32 32 32 34 34 34 35 35 Arrests 1,752 1,449 1,777 1,441 1,003 1,060 989 956 881 * Offenses 3,231 2,757 3,212 3,119 2,871 3,408 3,534 2,952 3,257 * Culture and recreation Park Acreage 110 110 110 110 110 128 128 128 128 * Library attendance 178,203 150,127 138,607 132,575 135,317 125,153 114,987 116,223 82,066 * Aquatics attendance 127,663 139,248 144,459 148,885 144,810 140,834 164,646 170,415 111,145 * Sports, programs, and event attendance 8,789 8,405 12,459 12,200 29,424 30,578 32,701 36,521 29,779 * Public transportation Fixed route rides 33,877 47,454 34,222 34,869 32,684 25,533 24,786 22,374 14,405 * Dial-A-Ride trips 6,456 5,622 5,097 11,842 6,221 6,224 6,952 6,696 5,271 * Out of town medical rides 1,630 1,742 1,972 2,441 1,321 1,473 1,445 2,368 1,850 * Community development Building permits issued 186 263 279 230 386 171 226 160 161 * Water Production capacity 2 mgd 2mgd 2mgd 2 mgd 2mgd 2mgd 2mgd 2mgd 2mgd 2mgd Customers served 6,560 6,688 6,843 6,770 6,843 6,942 7,116 7,315 7,212 * 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 2021-22 Budget: City Statistics - Services ---PAGE BREAK--- - 114 - CITY OF WOODBURN, OREGON CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 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 65 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 6182 6230 6317 6414 6479 6503 6558 6558 6642 6976 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--- - 115 - CITY OF WOODBURN, OREGON WATER SYSTEM COVERAGE CALCULATION LAST TEN FISCAL YEARS 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Customer Accounts 3,893 4,280 4,426 4,844 5,393 5,950 6,579 6,760 6,617 7,197 Revenues: Charges for Services 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 $ 4,330,970 $ Miscellaneous 55,010 58,454 303,593 60,055 67,290 58,922 79,062 120,234 61,379 56,410 Interest 1,862 3,827 7,498 9,078 12,425 22,231 39,618 62,422 59,579 24,401 SDC 264,265 79,187 164,993 151,517 115,606 76,430 227,986 216,164 334,389 1,058,194 Total Gross Revenues 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 5,469,975 Operating Expenditures Personal Services 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 1,574,854 Materials & Services 640,727 598,109 736,473 834,953 885,257 875,184 923,878 1,210,952 760,029 1,174,436 Total Operating Expenses 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 2,749,290 Water Fund Balance, End of Year 4,182,194 $ 4,517,447 $ 5,020,007 $ 5,358,699 $ 5,755,638 $ 3,473,585 $ 3,757,916 $ 4,242,704 $ 5,042,842 $ 6,200,092 $ Net Revenues 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 2,720,685 Total Debt Service 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 1,563,435 Debt Service Coverage 147% 129% 143% 129% 134% 112% 125% 142% 156% 174% ---PAGE BREAK--- - 116 - CITY OF WOODBURN, OREGON MAJOR WATER SYSTEM CUSTOMERS JUNE 30, 2021 # Customer Name Industry 2021 % of Total Charges 1 SPECIALTY POLYMER Industrial 68,935 $ 1.6% 2 CASCADE MEADOWS APARTMENTS Multi Family 51,742 1.2% 3 STONEHEDGE COURT Multi Family 51,741 1.2% 4 WOODBURN PREMIUM OUTLETS, LLC Commercial 40,673 1.0% 5 MARION CO HOUSING AUTHORITY Commercial 31,930 0.8% 6 HARVARD MEADOWS Multi Family 31,793 0.8% 7 WOODBURN WEST MOBILE ESTATES Multi Family 29,335 0.7% 8 AMERICOLD LOGISTICS Commercial 28,281 0.7% 9 NAIV HOUSING LP Multi Family 27,147 0.6% 10 COUNTRY MEADOWS VILLAGE Multi Family 24,635 0.6% Subtotal 386,212 $ Total Water Charges 4,208,143 $ ---PAGE BREAK--- COMPLIANCE SECTION ---PAGE BREAK--- - 117 - 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, 2021, and have issued our report thereon dated December 22, 2021. 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--- - 118 - 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. See the Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards for additional comments. 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: Ryan T. Pasquarella, A Shareholder December 22, 2021