Document Woodburn_doc_9d9e86d0f6

City of Woodburn, Oregon Annual Comprehensive Financial Report For the Year Ended June 30, 2023 Museum & Bungalow Theater Restoration Project ---PAGE BREAK--- CITY OF WOODBURN, OREGON ANNUAL COMPREHENSIVE FINANCIAL REPORT Year Ended June 30, 2023 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 21-51 REQUIRED SUPPLEMENTARY INFORMATION Combining Balance Sheet – Budgetary Funds Reported as General Fund 52 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Budgetary Funds Reported as General Fund 53 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund 54 PERS Reserve Fund 55 Building Inspection Fund 56 Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset) – Oregon Public Employee’s Retirement System 57 Schedule of the City’s Contributions – Oregon Public Employee’s Retirement System 58 Schedule of Changes in Total Other Post-Employment Benefits Liability and Related Ratios - Implicit Rate Subsidy 59 Schedule of the City’s Proportionate Share of the Net OPEB Liability (Asset) – Oregon Public Employee’s Retirement System Retiree Health Insurance Account 60 Schedule of the City’s Contributions – Oregon Public Employee’s Retirement System Retiree Health Insurance Account 61 Notes to the Required Supplementary Information 62-63 ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page FINANCIAL SECTION (Continued) SUPPLEMENTARY INFORMATION Governmental Funds Combining Balance Sheet – Nonmajor Funds 64-67 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Funds 68-71 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Street & Storm Capital Construction Fund 72 Street SDC Fund 73 Street Fund 74 Transit Fund 75 Asset Forfeiture Fund 76 American Rescue Plan Fund 77 Housing Rehabilitation Fund 78 Lavelle Black Trust Fund 79 Special Assessment Fund 80 Urban Renewal Fund 81 General Capital Construction Fund 82 Parks SDC Fund 83 Storm SDC Fund 84 Equipment Replacement Fund 85 GO Debt Service Fund 86 Proprietary Funds Enterprise Funds Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Basis) and Actual Water Operations Combining 87 Water Fund 88 Water SDC Fund 89 Water Capital Construction Fund 90 Sewer Operations Combining 91 Sewer Fund 92 Sewer SDC Fund 93 Sewer Capital Construction Fund 94 Internal Services Funds Combining Statement of Fund Net Position 95 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 96 Combining Statement of Cash Flows 97 Schedules of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) Budget and Actual Information Technology Fund 98 Insurance Fund 99 STATISTICAL SECTION CONTENTS 100 FINANCIAL TRENDS Net Position by Component 101 Changes in Net Position 102-103 Fund Balance of Governmental Funds 104 Changes in Fund Balances of Governmental Funds 105 ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page STATISTICAL SECTION (Continued) REVENUE CAPACITY Market and Assessed Value of Taxable Property 106-107 Direct and Overlapping Governments 108 Principal Property Taxpayers 109 Property Tax Levies and Collections 110 DEBT CAPACITY Ratios of Outstanding Debt by Type 111 Ratios of General Bonded Debt Outstanding 112 Direct and Overlapping Governmental Activities Debt 113 Legal Debt Margin Information 114 Pledged Revenue Coverage 115 DEMOGRAPHIC AND ECONOMIC INFORMATION Demographic and Economic Statistics 116 Principal Employers 117 OPERATING INFORMATION Full Time Equivalent Employees by Function 118 Operating Indicators by Function 119 Capital Asset Statistics by Function 120 OTHER INFORMATION Water System Coverage Calculation 121 Major Water System Customers 122 COMPLIANCE SECTION Independent Auditor’s Report Required by Oregon State Regulations 123-124 ---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 29, 2023 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, 2023. 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 REDW Advisors & CPAs, have issued an unmodified opinion on the City of Woodburn’s financial statements for the fiscal year ended June 30, 2023. 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 26,664, is Oregon’s 22nd most populated city, and 3rd most populated city in Marion County. The City provides a full range of municipal services, including but not limited to: police, water, wastewater, municipal court, public works (water, sewer, storm, and transportation), economic development, community planning and building inspections, transit, parks, recreation, aquatics, and library. ---PAGE BREAK--- - ii - REPORTING ENTITY The financial statements include information for the City of Woodburn and its blended component unit, the Urban Renewal Agency of the City of Woodburn. BUDGET PROCESS The Oregon Constitution and Oregon Revised Statutes 294 require an adopted balanced budget by July 1, and that the fiscal year for local governments is July 1 through June 30. The budget sets forth City Council’s goals and objectives, and identifies the resources necessary to accomplish them. The legal level of budgetary control, as adopted by Council Resolution, is by fund, although department level detail is shown. Appropriations lapse at fiscal year-end and incomplete projects must be re-appropriated in the following fiscal year as part of the adoption of the annual budget. ECONOMIC ENVIRONMENT Woodburn has high concentrations of employment across several traded‐sector clusters. These clusters are key target industries for Woodburn and include:  Production Technology and Machinery: manufacturing of machinery for food production, automatic sprinklers systems, bailing machines, hydraulic jacks, and other machinery production.  Plastics Manufacturing: plastic and rubber products, chemical manufacturing, and plumbing fixtures. This cluster is strongly linked to production technology, machinery, and other chemical manufacturing.  Metal Product Manufacturing: prefabricated metal building and component manufacturing, ornamental and architectural metal work manufacturing, bathtubs and sinks, metal pipe hangars, fire escapes, grills and grill work, and all other miscellaneous fabricated metal product manufacturing.  Food Processing and Manufacturing: baked goods, fruit and vegetable canning, frozen foods, confectionary manufacturing, and other food related manufacturing. Employment patterns in Woodburn, Marion County, and the Portland Region suggest that Woodburn has competitive advantages and opportunities for business development in these rapidly growing clusters:  Apparel Manufacturing: cutting and sewing apparel, embroidering on textile products, carpet cutting and binding, sleeping bag manufacturing, hats and glove manufacturing, and other apparel manufacturing.  Distribution and E‐Commerce: wholesale trade, farm supplies and merchant wholesalers, refrigerated warehousing and storage, packaging and labeling services, or other warehouse and distribution.  Information Technology and Analytic Technology: software publishers, electronic computer manufacturing, semiconductor manufacturing, laboratory instrument manufacturing. 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 2023, Oregon’s year- over-year unemployment rate was 3.6 percent, and Woodburn’s rate was 3.4 percent, which is lower than the U.S. unemployment rate of 3.9 percent for the same period. Factors contributing to Woodburn’s low unemployment rates include people’s; availability, quality, skills, education/experience, and wages. Within the Woodburn Urban Growth Boundary there are approximately 12,000 employees1. Beyond Woodburn, as of October 2023, Salem Region has a labor force of 212,300 and the Portland Region of 1,369,400. This means that Woodburn businesses have access to a mix of highly educated skilled and unskilled workers from across the Salem and Portland Regions. 1 Source: State of Oregon Employment Department, October 2023 Employment and Unemployment in Oregon Counties ---PAGE BREAK--- - iii - MAJOR ISSUES Development of the FY 2023-24 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.  Wages,  Public Employee Retirement System (PERS),  Facility maintenance,  Infrastructure needs,  Technology needs, and  Staff recruitment and retention 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. DISTINGUISHED BUDGET PRESENTATION AWARD/EXCELLENCE IN FINANCIAL REPORTING AWARD The City of Woodburn received GFOA's Distinguished Budget Presentation Award for its FY 2023-24 annual budget document. This is the 12th 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 4th time the City was awarded the Certificate of Achievement for Excellence in Financial Reporting from the GFOA for the FY2021-22 Annual Financial Report. ---PAGE BREAK--- - iv - ACKNOWLEDGMENTS This is the 5th year the City of Woodburn has prepared an Annual Comprehensive 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 Taylor Shepherd and Karen Sherman, for the excellent service they provide throughout the year which is reflected in this Annual Comprehensive 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 2022-23 Adopted Budget - Functional Organization Chart ---PAGE BREAK--- - vi - ---PAGE BREAK--- - vii - CITY OF WOODBURN, OREGON LIST OF OFFICIALS JUNE 30, 2023 MAYOR AND COUNCIL MEMBERS Name Term Expires Mayor Frank Lonergan December 31, 2024 Council Members Debbie Cabrales December 31, 2024 Robert Carney December 31, 2026 Mary Beth Cornwell December 31, 2026 Eric Morris December 31, 2024 Sharon Schaub December 31, 2026 Mark Wilk 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--- 475 Cottage Street NE, Suite 200, Salem, OR 97301 T: [PHONE REDACTED] E: [EMAIL REDACTED] www.redw.com/gms INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Council Members City of Woodburn Woodburn, Oregon Report on the Audit of the Financial Statements Opinions 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, Oregon (the City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Woodburn, Oregon, as of June 30, 2023 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. ---PAGE BREAK--- - 2 - 475 Cottage Street NE, Suite 200, Salem, OR 97301 T: [PHONE REDACTED] E: [EMAIL REDACTED] www.redw.com/gms Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis (MD&A) and the schedules of revenues, expenditures, and changes in fund balance – budget and actual for the General, PERS Reserve, and Building Inspection funds (“the budgetary schedules”), the City’s PERS schedules and the City’s OPEB schedules be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. The budgetary schedules described above are the responsibility of management and 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 subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. ---PAGE BREAK--- - 3 - 475 Cottage Street NE, Suite 200, Salem, OR 97301 T: [PHONE REDACTED] E: [EMAIL REDACTED] www.redw.com/gms 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 accompanying supplementary information is presented for purposes 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, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Included in the Annual Comprehensive Financial Report (ACFR) Management is responsible for the other information included in the ACFR. The other information comprises the introductory and statistical section of the ACFR but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Legal and Regulatory Standards Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 29, 2023 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 29, 2023, 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 results of that testing and not to provide an opinion on compliance. GROVE, MUELLER & SWANK CERTIFIED PUBLIC ACCOUNTANTS By: Ryan T. Pasquarella, Principal December 29, 2023 ---PAGE BREAK--- - 4 - CITY OF WOODBURN Year Ended June 30, 2023 MANAGEMENT’S DISCUSSION AND ANALYSIS The Management’s Discussion and Analysis of the City of Woodburn’s Annual Comprehensive Financial Report (Annual Financial Report) presents a discussion and analysis of the City’s financial performance during the fiscal year ended June 30, 2023. 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: 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”. 2023 2022 Change Net position 201,080,217 $ 183,917,797 $ 17,162,420 $ Change in net position 17,162,420 31,987,414 (14,824,994) Governmental activities net position 119,901,843 109,365,146 10,536,697 Business-type activities fund net position 81,178,374 74,552,651 6,625,723 Change in governmental net position 10,536,697 23,833,739 (13,297,042) Change in proprietary fund net position 6,625,723 8,153,675 (1,527,952) ---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 seventeen 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. 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. ---PAGE BREAK--- - 6 - GOVERNMENT-WIDE FINANCIAL ANALYSIS The City had $223,616,646 in total assets, $7,780,442 in total deferred outflows, $25,207,817 in total liabilities and $5,109,054 in total deferred inflows, resulting in combined net position of $201,080,217 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 and lease assets, net of depreciation and amortization, increased $5,155,489 over the prior year mainly due to the Legion Park improvements and West Hayes Street improvement projects, offset by current year depreciation. Business-type capital assets, net of depreciation, increased $4,062,027 over the prior year due primarily to the I-5 pump station and Parr Road Water Treatment Plant projects, offset by current year depreciation. Total liabilities for both governmental and business-type activities increased by $2,715,931 from the prior year mainly due to an increase in the net pension liability, partially offset by payments on long-term debt in the current year. Overall, the City’s financial net position increased by $17,162,420 Statement of Net Position The following table reflects the condensed Statement of Net Position compared to the prior year. Governmental Activities The City’s net position from governmental activities increased $10,536,697 (10%) from June 30, 2022 to June 30, 2023 due to an increase in capital assets net of depreciation, as well as additional American Rescue Plan Act funding received in the current year that resulted from a new large commercial property constructed within City limits. Governmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total Cash and investments 54,447,155 $ 26,463,551 $ 80,910,706 $ 49,605,611 $ 24,635,731 $ 74,241,342 $ Other assets 3,181,386 1,179,883 4,361,269 2,032,567 2,231,354 4,263,921 Capital and lease assets, net 79,178,732 59,165,939 138,344,671 74,023,243 55,103,912 129,127,155 Total Assets 136,807,273 86,809,373 223,616,646 125,661,421 81,970,997 207,632,418 Deferred outflows 6,390,135 1,390,307 7,780,442 6,383,348 1,388,395 7,771,743 Other liabilities 4,160,405 925,938 5,086,343 3,968,471 2,708,854 6,677,325 Long-term liabilities 15,152,990 4,968,484 20,121,474 11,641,366 4,173,195 15,814,561 Total Liabilities 19,313,395 5,894,422 25,207,817 15,609,837 6,882,049 22,491,886 Deferred inflows 3,982,170 1,126,884 5,109,054 7,069,786 1,924,692 8,994,478 Net position: Net investment in capital assets 75,088,828 56,333,884 131,422,712 70,723,048 51,418,406 122,141,454 Restricted 29,560,790 7,401,431 36,962,221 27,828,278 8,547,823 36,376,101 Unrestricted 15,252,225 17,443,059 32,695,284 10,813,820 14,586,422 25,400,242 Total Net Position 119,901,843 $ 81,178,374 $ 201,080,217 $ 109,365,146 $ 74,552,651 $ 183,917,797 $ 2023 2022 ---PAGE BREAK--- - 7 - Business-type Activities The City’s net position from business-type activities increased $6,625,723 from June 30, 2022 to June 30, 2023 due mainly to charges for services in excess of expenses. Statement of Activities The following table reflects the condensed Statement of Activities compared to the prior year. Governmental Activities. Total revenues for the City’s governmental activities were $41,632,508 for the fiscal year ended June 30, 2023. Approximately 31% of the total revenue for the governmental activities was derived from property taxes and approximately 48% of the total revenue was from program revenues. Total expenses for governmental activities were $31,248,060 and net transfers in were $152,249 resulting in a $10,536,697 increase in net position. General government activities accounted for approximately 39% of the total governmental activities expense. Public safety, highways and streets, culture and recreation, and economic development expenses account for approximately 61% 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 $17,835,863 for the current fiscal year. These activities generated $17,150,462 in program revenues, and $685,401 in interest earnings and miscellaneous revenues. The total expenses for business-type activities were $11,057,891 and net transfers out were $152,249 resulting in a $6,625,723 increase in net position. Business-type activities for the City of Woodburn consist of operations for water and wastewater services. Business- Business- Governmental type Governmental type Activities Activities Total Activities Activities Total Revenues Program Revenues Charges for service 9,768,573 $ 15,064,692 $ 24,833,265 $ 17,481,046 $ 14,091,051 $ 31,572,097 $ Operating grants and contributions 3,957,325 - 3,957,325 2,935,200 - 2,935,200 Capital grants and contributions 6,143,604 2,085,770 8,229,374 11,819,278 3,512,282 15,331,560 Total Program Revenues 19,869,502 17,150,462 37,019,964 32,235,524 17,603,333 49,838,857 General Revenues Property taxes 12,754,434 - 12,754,434 11,789,537 - 11,789,537 Franchise taxes 2,934,866 - 2,934,866 2,594,751 - 2,594,751 Other taxes 617,455 - 617,455 622,953 - 622,953 Intergovernmental 3,892,263 - 3,892,263 3,789,280 - 3,789,280 Other 1,563,988 685,401 2,249,389 362,423 134,938 497,361 Total General Revenues 21,763,006 685,401 22,448,407 19,158,944 134,938 19,293,882 Total Revenues 41,632,508 17,835,863 59,468,371 51,394,468 17,738,271 69,132,739 Expenses General government 12,173,246 - 12,173,246 3,737,926 - 3,737,926 Public safety 9,379,653 - 9,379,653 8,021,074 - 8,021,074 Highways and streets 2,854,368 - 2,854,368 2,419,718 - 2,419,718 Culture and recreation 2,746,469 - 2,746,469 6,670,443 - 6,670,443 Economic development 4,069,679 - 4,069,679 6,907,549 - 6,907,549 Interest on long-term debt 24,645 - 24,645 35,369 - 35,369 Water - 3,720,280 3,720,280 - 3,291,960 3,291,960 Sewer - 7,337,611 7,337,611 - 6,061,286 6,061,286 Total Expenses 31,248,060 11,057,891 42,305,951 27,792,079 9,353,246 37,145,325 10,384,448 6,777,972 17,162,420 23,602,389 8,385,025 31,987,414 Transfers 152,249 (152,249) - 231,350 (231,350) - Change in Net Position 10,536,697 6,625,723 17,162,420 23,833,739 8,153,675 31,987,414 Beginning Net Position 109,365,146 74,552,651 183,917,797 85,531,407 66,398,976 151,930,383 Ending Net Position 119,901,843 $ 81,178,374 $ 201,080,217 $ 109,365,146 $ 74,552,651 $ 183,917,797 $ Changes in Net Position Before Transfers 2023 2022 ---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 $51,161,751 of fund balance of the governmental funds, an increase of $4,537,544 from the prior year. The City’s governmental funds include the General Fund, Building Inspection Fund, Street SDC 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 $13,967,300 was reported by the General Fund. The fund balance increased by $2,150,183 from the previous year due primarily to an increase in property tax revenue with control expenditures. The City reports three other major governmental funds. The Building Inspection Fund had a fund balance of $7,271,433, an increase of $804,587 from the previous year, due mainly to continued above-average licenses and permits revenue with consistent personnel costs. The Street & Storm Capital Improvement Fund had a fund balance of $441,086, an increase of $56, due to transfers in from other funds to cover current year expenditures. The Street SDC fund had a balance of $13,518,413, an increase of $1,290,268, due to continued collections of SDC’s to be used in future years. Proprietary Funds. At the end of the current fiscal year, net position of the enterprise funds equaled $81,178,374, an increase of $6,625,723 from the prior year, and net position of the internal service funds equaled $831,542, a decrease of $110,981 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 $16,656,306, an increase of $2,293,731 from previous year, mainly due to controlled increases in revenue to keep up with rising operating expenses. The Sewer Operations Fund had a net position of $64,522,068, an increase of $4,331,992 from the previous year, mainly due to controlled increases in revenue to keep up with rising operating expenses. GENERAL FUND BUDGETARY HIGHLIGHTS Actual revenues (budgetary basis) exceeded budgeted amounts by less than General Fund expenditures ended $6,981,453 below budgeted amounts primarily due to management efforts to contain costs throughout the fiscal year. There was one supplemental budget that affected total balances in the General Fund during the year, which increased operating expenses by $1,500,000. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City’s investment in capital and lease assets for its governmental and business-type activities equaled $79,178,732 and $59,165,939 respectively, at the end of the current fiscal year, net of accumulated depreciation and amortization. This investment includes land, construction in process, buildings, equipment, and infrastructure, and right to use assets. Additional information about the City’s capital assets is presented on pages 33-34 in the notes to the financial statements. ---PAGE BREAK--- - 9 - Long-term Debt. At the end of the current fiscal year, long-term debt outstanding for the governmental activities totaled $3,835,147, compared to $4,685,346 in the prior year. The decrease is due to scheduled debt repayments offset by the recognition of leases payable. For the business-type activities, total long-term debt equaled $2,305,508 compared to $3,748,268 in the prior year. The decrease is due to scheduled debt repayments. Additional information about the City’s long-term debt outstanding is presented on pages 35-37 in the notes to the financial statements. 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. 2023 2022 2023 2022 2023 2022 Land 23,056,538 $ 23,056,538 $ 1,813,429 $ 1,813,429 $ 24,869,967 $ 24,869,967 $ Construction in progress 15,483,340 10,674,594 13,651,575 8,826,673 29,134,915 19,501,267 Buildings 23,899,819 22,397,192 62,748,380 62,748,380 86,648,199 85,145,572 Equipment 8,895,781 8,038,919 4,462,784 4,359,623 13,358,565 12,398,542 Infrastructure 46,812,956 46,645,762 34,040,143 32,790,414 80,853,099 79,436,176 Right to use asset - equipment 658,892 658,892 - - 658,892 658,892 Accumulated depreciation and amortization (39,628,594) (37,448,654) (57,550,372) (55,434,607) (97,178,966) (92,883,261) Net capital and lease assets 79,178,732 $ 74,023,243 $ 59,165,939 $ 55,103,912 $ 138,344,671 $ 129,127,155 $ Governmental Activities Business-type Activities Total Governmental Activities Business-type Activities Total 2023 2022 2023 2022 2023 2022 General obligation bonds 597,000 $ 1,194,000 $ - $ - $ 597,000 $ 1,194,000 $ Direct borrowings 1,832,000 2,109,000 - - 1,832,000 2,109,000 Direct placement revenue bonds - - 2,244,000 3,686,000 2,244,000 3,686,000 Leases payable 385,604 560,118 - - 385,604 560,118 Accrued compensated absences 1,020,543 822,228 61,508 62,268 1,082,051 884,496 3,835,147 $ 4,685,346 $ 2,305,508 $ 3,748,268 $ 6,140,655 $ 8,433,614 $ ---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, 2023 Governmental Business-type Activities Activities Totals ASSETS Cash and investments 54,447,155 $ 26,463,551 $ 80,910,706 $ Accounts receivable 2,053,343 1,126,918 3,180,261 Property taxes receivable 462,348 - 462,348 Assessment liens receivable 12,267 - 12,267 Loans receivable 457,608 - 457,608 Prepaid expenses 26,160 6,859 33,019 Net OPEB asset - RHIA 169,660 46,106 215,766 Non-depreciable capital assets 38,539,877 15,465,005 54,004,882 Other capital assets and leases, net 40,638,855 43,700,934 84,339,789 Total Assets 136,807,273 86,809,373 223,616,646 DEFERRED OUTFLOWS Deferred outflows related to PERS 6,236,855 1,347,890 7,584,745 Deferred outflows related to OPEB 151,878 42,127 194,005 Deferred charges on refunding 1,402 290 1,692 Total Deferred Outflows 6,390,135 1,390,307 7,780,442 LIABILITIES Accounts payable 2,842,312 729,782 3,572,094 Accrued payroll liabilities 1,313,035 - 1,313,035 Deposits payable - 190,929 190,929 Interest payable 5,058 5,227 10,285 Noncurrent liabilities: Due within one year: Long-term debt 882,000 1,442,000 2,324,000 Leases payable 126,214 - 126,214 Accrued compensated absences 408,217 24,603 432,820 Due in more than one year: Long-term debt 1,547,000 802,000 2,349,000 Leases payable 259,390 - 259,390 Accrued compensated absences 612,326 36,905 649,231 Total OPEB liability - Implict rate subsidy 568,040 168,085 736,125 Net pension liability - PERS 10,749,803 2,494,891 13,244,694 Total Liabilities 19,313,395 5,894,422 25,207,817 DEFERRED INFLOWS Deferred inflows related to PERS 3,809,946 1,078,196 4,888,142 Deferred inflows related to OPEB 172,224 48,688 220,912 Total Deferred Inflows 3,982,170 1,126,884 5,109,054 NET POSITION Net investment in capital assets 75,088,828 56,333,884 131,422,712 Restricted for: Debt service 16,675 - 16,675 Culture and recreation 947,476 - 947,476 Community development 4,372,405 - 4,372,405 Construction 24,035,948 7,361,502 31,397,450 OPEB - RHIA 188,286 39,929 228,215 Unrestricted 15,252,225 17,443,059 32,695,284 Total Net Position 119,901,843 $ 81,178,374 $ 201,080,217 $ ---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, 2023 Fees, Fines Operating Capital and Charges Grants and Grants and Expenses for Services Contributions Contributions FUNCTIONS/PROGRAMS Governmental activities: General government 12,173,246 $ 4,954,458 $ 113,699 $ 992,922 $ Public safety 9,379,653 270,547 3,649 2,500 Highways and streets 2,854,368 215,780 2,073,000 2,091,658 Culture and recreation 2,746,469 444,652 1,663,257 3,056,524 Economic development 4,069,679 3,883,136 103,720 - Interest on long-term debt 24,645 - - - Total Governmental activities 31,248,060 9,768,573 3,957,325 6,143,604 Business-type activities: Water 3,720,280 5,057,977 - 756,404 Sewer 7,337,611 10,006,715 - 1,329,366 Total Business-type activities 11,057,891 15,064,692 - 2,085,770 Total Activities 42,305,951 $ 24,833,265 $ 3,957,325 $ 8,229,374 $ 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 (6,112,167) $ - $ (6,112,167) $ (9,102,957) - (9,102,957) 1,526,070 - 1,526,070 2,417,964 - 2,417,964 (82,823) - (82,823) (24,645) - (24,645) (11,378,558) - (11,378,558) - 2,094,101 2,094,101 - 3,998,470 3,998,470 - 6,092,571 6,092,571 (11,378,558) 6,092,571 (5,285,987) 12,754,434 - 12,754,434 2,934,866 - 2,934,866 617,455 - 617,455 3,892,263 - 3,892,263 44,185 - 44,185 1,263,409 611,131 1,874,540 256,394 74,270 330,664 21,763,006 685,401 22,448,407 152,249 (152,249) - 10,536,697 6,625,723 17,162,420 109,365,146 74,552,651 183,917,797 119,901,843 $ 81,178,374 $ 201,080,217 $ and Changes in Net Position Net (Expenses) Revenues ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 13 - CITY OF WOODBURN, OREGON BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2023 Special Revenue General Building Inspection Street Storm Capital Improvement Street SDC Other Governmental Funds Total ASSETS Cash and investments 15,071,380 $ 7,352,891 $ 1,236,002 $ 13,518,413 $ 16,049,585 53,228,271 $ Accounts receivable 1,017,581 - - - 976,257 1,993,838 Property taxes receivable 406,467 - - - 55,881 462,348 Assessment liens receivable - - - - 12,267 12,267 Loans receivable - - - - 457,608 457,608 Prepaid items 22,860 - - - 3,300 26,160 Total Assets 16,518,288 $ 7,352,891 $ 1,236,002 $ 13,518,413 $ 17,554,898 $ 56,180,492 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Accounts payable 865,290 $ 81,458 $ 794,916 $ - $ 946,226 $ 2,687,890 $ Retainage payable - - - - 123,518 123,518 Accrued payroll and payroll liabilities 1,313,035 - - - - 1,313,035 Total Liabilities 2,178,325 81,458 794,916 - 1,069,744 4,124,443 Deferred Inflows Unavailable revenue 372,663 - - - 521,635 894,298 Fund Balance Non-spendable 22,860 - - - 3,300 26,160 Restricted for: Debt service - - - - 16,675 16,675 Construction - - 441,086 13,518,413 10,072,306 24,031,805 Culture and recreation - - - - 947,476 947,476 Community development - - - 3,884,844 3,884,844 Committed to: Public safety - - - - 18,145 18,145 Capital outlay - - - - 1,020,773 1,020,773 Planning and building - 7,271,433 - - - 7,271,433 Retirement 391,120 - - - - 391,120 Unassigned 13,553,320 - - - - 13,553,320 Total Fund Balance 13,967,300 7,271,433 441,086 13,518,413 15,963,519 51,161,751 Total Liabilities, Deferred Inflows and Fund Balance 16,518,288 $ 7,352,891 $ 1,236,002 $ 13,518,413 $ 17,554,898 $ 56,180,492 $ Capital Projects ---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, 2023 Fund Balances 51,161,751 $ 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. 894,298 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 (10,268,925) Total OPEB liability - Implicit rate subsidy (543,925) Net OPEB asset - RHIA 163,544 Deferred outflows - PERS 5,980,080 Deferred outflows - OPEB 145,498 Deferred inflows - PERS (3,679,807) Deferred inflows - OPEB (165,640) Capital and lease assets are not financial resources in governmental funds, but are reported in the Statement of Net Position at their net depreciable value. Cost 118,807,326 Accumulated depreciation and amortization (39,628,594) 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 (977,045) Accrued interest (5,058) Long-term debt (2,429,000) Less deferred charges on refunding 1,402 Leases payable (385,604) 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. 831,542 Net Position of Governmental Activities 119,901,843 $ ---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, 2023 Special Revenue General Building Inspection Street Storm Capital Improvement Street SDC Other Governmental Funds Total REVENUES Taxes and assessments 11,695,449 $ - $ - $ - $ 1,659,629 $ 13,355,078 $ Licenses and permits 2,866,329 2,043,119 - 1,988,329 1,887,594 8,785,371 Charges for services 993,454 - - - 24 993,478 Intergovernmental 2,269,076 - - - 6,827,422 9,096,498 Fines and forfeitures 512,030 787,716 - - 465,335 1,765,081 Miscellaneous 917,436 167,256 220,720 301,939 1,542,435 3,149,786 Total Revenues 19,253,774 2,998,091 220,720 2,290,268 12,382,439 37,145,292 EXPENDITURES Current General government 3,049,438 - - - - 3,049,438 Economic development 1,310,841 2,184,664 - - 2,054,629 5,550,134 Public safety 9,201,756 - - - - 9,201,756 Highways and streets - - - - 2,500,405 2,500,405 Culture and recreation 3,313,607 - - - 1,522,595 4,836,202 Debt Service Principal - - - - 874,000 874,000 Interest - - - - 83,254 83,254 Capital outlay 100,945 - 3,295,730 - 3,422,010 6,818,685 Total Expenditures 16,976,587 2,184,664 3,295,730 - 10,456,893 32,913,874 REVENUES OVER (UNDER) EXPENDITURES 2,277,187 813,427 (3,075,010) 2,290,268 1,925,546 4,231,418 OTHER FINANCING SOURCES (USES) Transfers in 493,970 - 3,075,066 - 2,486,178 6,055,214 Transfers out (665,224) (8,840) - (1,000,000) (4,119,210) (5,793,274) Proceeds from sale of assets 44,250 - - - (64) 44,186 Total Other Financing Sources (Uses) (127,004) (8,840) 3,075,066 (1,000,000) (1,633,096) 306,126 NET CHANGE IN FUND BALANCE 2,150,183 804,587 56 1,290,268 292,450 4,537,544 FUND BALANCE, beginning of year 11,817,117 6,466,846 441,030 12,228,145 15,671,069 46,624,207 FUND BALANCE, end of year 13,967,300 $ 7,271,433 $ 441,086 $ 13,518,413 $ 15,963,519 $ 51,161,751 $ Capital Projects ---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, 2023 Net Change in Fund Balances - Total Governmental Funds 4,537,544 $ 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 16,812 Decreases in other assets (2,336) 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 (194,415) Accrued interest payable 1,592 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 and amortization expense. Expenditures for capital and lease assets 7,335,429 Depreciation and amortization (2,179,940) 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 874,000 Repayment of lease principal 174,514 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. 85,880 Net income of internal service funds (110,981) Change in Net Position of Governmental Activities 10,536,697 $ ---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, 2023 Governmental Activities Water Operations Sewer Operations Total Internal Service ASSETS Current Assets Cash and investments 6,793,159 $ 19,670,392 $ 26,463,551 $ 1,218,884 $ Accounts receivable 418,084 708,834 1,126,918 59,506 Prepaid items - 6,859 6,859 - Total Current Assets 7,211,243 20,386,085 27,597,328 1,278,390 Noncurrent Assets Net OPEB asset - RHIA 19,567 26,539 46,106 6,116 Nondepreciable capital assets 3,177,673 12,287,332 15,465,005 - Other capital assets, net of depreciation 9,923,451 33,777,483 43,700,934 - Total Noncurrent Assets 13,120,691 46,091,354 59,212,045 6,116 Total Assets 20,331,934 66,477,439 86,809,373 1,284,506 DEFERRED OUTFLOWS Deferred outflows related to PERS 457,864 890,026 1,347,890 256,775 Deferred outflows related to OPEB 18,707 23,420 42,127 6,380 Deferred charge on refunding 290 - 290 - Total Deferred Outflows 476,861 913,446 1,390,307 263,155 LIABILITIES Current Liabilities Accounts payable 185,961 543,821 729,782 30,905 Deposits payable 190,929 - 190,929 - Accrued interest payable 5,227 - 5,227 - Current portion of long-term liabilities Long-term debt 1,402,000 - 1,402,000 - Accrued compensated absences 16,882 7,721 24,603 17,399 Total Current Liabilities 1,800,999 551,542 2,352,541 48,304 Noncurrent Liabilities Accrued compensated absences 25,323 11,582 36,905 26,099 Long-term debt 842,000 - 842,000 - Net pension liability - PERS 918,950 1,575,941 2,494,891 480,878 Total OPEB liability - Implicit rate subsidy 74,833 93,252 168,085 24,115 Total Noncurrent Liabilities 1,861,106 1,680,775 3,541,881 531,092 Total Liabilities 3,662,105 2,232,317 5,894,422 579,396 DEFERRED INFLOWS Deferred inflows related to PERS 469,708 608,488 1,078,196 130,139 Deferred inflows related to OPEB 20,676 28,012 48,688 6,584 Total Deferred Inflows 490,384 636,500 1,126,884 136,723 NET POSITION: Net investment in capital assets 10,733,163 45,600,721 56,333,884 - Restricted for: Construction 4,585,123 2,776,379 7,361,502 - OPEB - RHIA 17,973 21,956 39,929 6,172 Unrestricted 1,320,047 16,123,012 17,443,059 825,370 Total Net Position 16,656,306 $ 64,522,068 $ 81,178,374 $ 831,542 $ ---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, 2023 Governmental Activities Water Operations Sewer Operations Total Internal Service OPERATING REVENUES Charges for services 5,057,977 $ 10,006,715 $ 15,064,692 $ 2,132,810 $ Miscellaneous 68,548 5,722 74,270 2,666 Total Operating Revenues 5,126,525 10,012,437 15,138,962 2,135,476 OPERATING EXPENSES Personal services 1,836,347 2,218,676 4,055,023 626,705 Materials and services 1,329,072 2,378,612 3,707,684 1,463,779 Depreciation 470,844 1,644,921 2,115,765 - Total Operating Expenses 3,636,263 6,242,209 9,878,472 2,090,484 OPERATING INCOME (LOSS) 1,490,262 3,770,228 5,260,490 44,992 NONOPERATING REVENUES (EXPENSES) Investment revenue 181,847 429,284 611,131 20,309 Interest expense (84,017) (1,095,402) (1,179,419) - Total Nonoperating Revenues (Expenses) 97,830 (666,118) (568,288) 20,309 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 1,588,092 3,104,110 4,692,202 65,301 Capital contributions 756,404 1,329,366 2,085,770 - Transfers in 28,465 74,696 103,161 - Transfers out (79,230) (176,180) (255,410) (176,282) CHANGE IN NET POSITION 2,293,731 4,331,992 6,625,723 (110,981) NET POSITION, beginning of year 14,362,575 60,190,076 74,552,651 942,523 NET POSITION, end of year 16,656,306 $ 64,522,068 $ 81,178,374 $ 831,542 $ ---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, 2023 Governmental Activities Water Operations Sewer Operations Totals Internal Service CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 5,015,325 $ 10,084,543 $ 15,099,868 $ 2,143,763 $ Paid to suppliers (1,311,520) (2,027,809) (3,339,329) (1,439,515) Paid to employees (1,846,711) (1,931,248) (3,777,959) (626,375) Net Cash Provided by Operating Activities 1,857,094 6,125,486 7,982,580 77,873 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in 2,868,530 74,696 2,943,226 - Transfers out (2,919,296) (176,180) (3,095,476) (6,530) Net Cash Used in Non-Capital Financing Activities (50,766) (101,484) (152,250) (6,530) CASH FLOWS FROM CAPITAL AND Acquisition of capital assets (2,858,540) (3,216,092) (6,074,632) (169,752) Principal paid on loans and bonds payable (1,442,000) - (1,442,000) - Capital contributions 756,404 1,329,366 2,085,770 - Interest paid (87,377) (1,095,402) (1,182,779) - Net Cash Used in Capital and Related Financing Activities (3,631,513) (2,982,128) (6,613,641) (169,752) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 181,847 429,284 611,131 20,310 Increase (Decrease) in Cash and Investments (1,643,338) 3,471,158 1,827,820 (78,099) CASH AND INVESTMENTS, Beginning of year 8,436,497 16,199,234 24,635,731 1,296,983 CASH AND INVESTMENTS, End of year 6,793,159 $ 19,670,392 $ 26,463,551 $ 1,218,884 $ 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, 2023 Governmental Activities Water Operations Sewer Operations Totals Internal Service RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) 1,490,262 $ 3,770,228 $ 5,260,490 $ 44,991 $ cash provided by operating activities: Depreciation 470,844 1,644,921 2,115,765 - Non-cash transfers in (28,465) (74,696) (103,161) - Change in assets and liabilities: Accounts receivable (121,703) 1,167,508 1,045,805 8,288 Deferred outflows (748) (1,164) (1,912) (327) Net OPEB asset - RHIA 2,551 3,117 5,668 - Prepaid expenses - - - 877 Accounts payable and accrued liabilities 44,559 (369,168) (324,609) 24,264 Customer deposits 11,960 - 11,960 - Compensated absences payable (163) (597) (760) 3,900 Net pension liability - PERS 341,897 417,674 759,571 117,398 Total OPEB liability - Implicit rate subsidy 5,208 6,363 11,571 1,789 Deferred inflows (359,108) (438,700) (797,808) (123,307) Net Cash Provided by Operating Activities 1,857,094 $ 6,125,486 $ 7,982,580 $ 77,873 $ Noncash Transactions Transfer of capital assets (28,465) $ (74,696) $ (103,161) $ - $ 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, 2023 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, 2023. 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, 2023 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, 2023 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, 2023 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 Building Inspection Fund Street & Storm Capital Improvement Fund Street SDC 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, 2023 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, 2023. 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, 2023 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, 2023 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 assets 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, 2022 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 of net assets 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, 2023 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 Building Inspection Fund - This fund accounts for building permit revenue and associated operations. ---PAGE BREAK--- - 29 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 ORGANIZATION AND OPERATION (Continued) Governmental Fund Types (Continued) Special Revenue Funds (Continued) Street Fund - This fund is used to account for the City’s street operations. The fund’s major source of revenue is highway gas tax received from the State of Oregon. Transit Fund – This fund accounts for amounts held to be used for transportation services. 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. American Rescue Plan Fund - This fund accounts for revenue and expenditures directly related to the funds received by the City resulting from the American Rescue Plan Act. Housing Rehabilitation Fund - This fund accounts for the City’s CDBG grant program and provides low- income housing and small business loans. Lavelle Black Trust Fund – This fund accounts for the donations received to continue the police dog program. Special Assessment Fund - This fund accounts for the repayment of local improvement district (LID) assessments. 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 Street SDC Fund - This fund accounts for the collection and spending of street SDCs. General Capital Construction Fund - This fund is used to account for transfers from general services funds used for general services construction projects. Street & Storm Capital Improvement Fund - This fund accounts for transfers from the Storm and Street funds. The money is used for street and storm related capital projects. Parks SDC Fund - This fund is used to account for the collection and spending of park 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. ---PAGE BREAK--- - 30 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 ORGANIZATION AND OPERATION (Continued) Governmental Fund Types (Continued) 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. 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, 2023 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.” Deposits The book balance of the City’s bank deposits was $44,080,080 and the bank balance was $44,585,029 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 99.63% of the value of the pool shares as of June 30, 2023. 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. Cash Cash on hand $ 4,422 $ 4,422 Deposits with financial institutions 44,080,080 44,080,080 Investments Local Government Investment Pool 36,826,204 36,689,947 $ 80,910,706 $ 80,774,449 Carrying Fair Value Value Cash is reported in the financial statements as follows: Governmental funds $ 53,228,271 Internal Service funds (included in governmental activities) 1,218,884 Enterprise funds 26,463,551 $ 80,910,706 ---PAGE BREAK--- - 32 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 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, 2023, $44,085,029 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, 2023 CAPITAL ASSETS The summary of capital assets for governmental activities for the year ended June 30, 2023 is as follows: Depreciation expense was allocated as follows: Amortization expense was allocated as follows: Balances Balances July 1, Balances June 30, June 30, 2022 Additions 2023 Capital assets not being depreciated Land 23,056,538 $ - $ - $ 23,056,538 $ Construction in progress 10,674,594 6,418,030 (1,609,284) 15,483,340 Subtotal, nondepreciable assets 33,731,132 6,418,030 (1,609,284) 38,539,878 Capital and lease assets being depreciated or amortized Buildings 22,397,192 1,502,627 - 23,899,819 Equipment 8,038,919 856,862 - 8,895,781 Infrastructure 46,645,762 167,194 - 46,812,956 Less accumulated depreciation (37,347,345) (2,001,363) - (39,348,708) Capital assets, net of depreciation 39,734,528 525,320 - 40,259,848 Right to use asset - equipment 658,892 - - 658,892 Less accumulated amortization (101,309) (178,577) - (279,886) Lease assets, net of amortization 557,583 (178,577) - 379,006 Total capital and lease assets being depreciated or amortized, net 40,292,111 346,743 - 40,638,854 Net capital assets 74,023,243 $ 6,764,773 $ (1,609,284) $ 79,178,732 $ Retirements/ Transfers General government 620,908 $ Public safety 195,255 Highways and streets 898,531 Culture and recreation 143,573 Internal service funds 143,096 2,001,363 $ General government 21,684 $ Public safety 156,893 178,577 $ ---PAGE BREAK--- - 34 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 CAPITAL ASSETS (Continued) The summary of capital assets for the business-type activities for the year ended June 30, 2023 is as follows: Depreciation expense was allocated as follows: Balances Balances June 30, June 30, 2022 Additions Retirements 2023 Capital assets not being depreciated Land 1,813,429 $ - $ - $ 1,813,429 $ Construction in progress 8,826,673 6,060,234 (1,235,332) 13,651,575 Subtotal, nondepreciable assets 10,640,102 6,060,234 (1,235,332) 15,465,004 Capital assets being depreciated Buildings 62,748,380 - - 62,748,380 Water and sewer systems 32,790,414 1,249,729 - 34,040,143 Equipment 4,359,623 103,161 - 4,462,784 Less accumulated depreciation (55,434,607) (2,115,765) - (57,550,372) Capital assets, net of depreciation 44,463,810 (762,875) - 43,700,935 Net capital assets 55,103,912 $ 5,297,359 $ (1,235,332) $ 59,165,939 $ Water operations 470,844 $ Sewer operations 1,644,921 2,115,765 $ ---PAGE BREAK--- - 35 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 LONG-TERM DEBT Long-term debt transactions for the year ended June 30, 2023 were as follows: 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, 2023 is $597,000. Annual debt service requirements to maturity for bonds payable are as follows: Outstanding Matured/ Outstanding Due July 1, Redeemed June 30, Within 2022 Issued During Year 2023 One Year Governmental Activities: 1,194,000 $ - $ (597,000) $ 597,000 $ 597,000 $ Direct borrowings 2,109,000 - (277,000) 1,832,000 285,000 3,303,000 - (874,000) 2,429,000 882,000 Accrued compensated absences 822,228 940,390 (742,075) 1,020,543 408,217 4,125,228 $ 940,390 $ (1,616,075) $ 3,449,543 $ 1,290,217 $ Business-type Activities: Direct placement revenue bonds 3,686,000 $ - $ (1,442,000) $ 2,244,000 $ 1,332,000 $ Accrued compensated absences 62,268 92,216 (92,976) 61,508 24,603 3,748,268 $ 92,216 $ (1,534,976) $ 2,305,508 $ 1,356,603 $ Direct placement general obligation bonds Principal Interest Total 2024 597,000 $ 13,082 $ 610,082 $ Fiscal Year June 30, Ending ---PAGE BREAK--- - 36 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 LONG-TERM DEBT (Continued) Loans from Direct Borrowings - Governmental Activities 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, 2023 is $1,832,000. Annual debt service requirements for direct borrowings are as follows: 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, 2023 is $2,244,000. This loan was fully paid off in July 2023. Annual debt service requirements to maturity for bonds payable are as follows: Principal Interest Total 2024 285,000 $ 50,746 $ 335,746 $ 2025 293,000 42,852 335,852 2026 301,000 34,736 335,736 2027 309,000 26,398 335,398 2028 318,000 17,839 335,839 2029 326,000 9,030 335,030 1,832,000 $ 181,601 $ 2,013,601 $ Fiscal Year Ending June 30, Principal Interest Total 2024 1,332,000 $ 46,393 $ 1,378,393 $ 2025 912,000 13,406 925,406 2,244,000 $ 59,799 $ 2,303,799 $ Fiscal Year Ending June 30, ---PAGE BREAK--- - 37 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 LEASES PAYABLE The City has a lease agreement for six police vehicles with various payment amounts and expiration dates. The yearly payments in place at June 30, 2022 total $83,664 per year, with the newest lease expiring in 2024. The lease payable was calculated using a discount rate of 3.0% The City has a lease agreement for police equipment. The agreement was incepted in June 2022 with yearly payments of $84,358 commencing in July 2022. The lease payable was calculated using a discount rate of 3.0%. The City has a lease agreement for office equipment with payments in place at June 30, 2022 of $1,917 per month, with the lease expiring in 2027. The lease payable was calculated using a discount rate of 3.0%. As of and for the year ended June 30, 2023, the City’s lease payable activity was as follows: At June 30, 2023, future principal and interest payments for the lease payables are as follows: Outstanding Matured/ Outstanding Due June 30, Redeemed June 30, Within 2022 Issued During Year 2023 One Year Vehicle leases 109,616 $ - $ (80,375) $ 29,241 $ 29,241 $ Police equipment lease 386,335 - (72,768) 313,567 74,951 Copier lease 64,167 - (21,371) 42,796 22,022 560,118 $ - $ (174,514) $ 385,604 $ 126,214 $ Fiscal Year Ending June 30, Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total 2024 29,241 $ 877 $ 30,118 $ 74,951 $ 9,407 $ 84,358 $ 22,022 $ 983 $ 23,005 $ 126,214 $ 11,267 $ 137,481 $ 2025 - - - 77,199 7,159 84,358 20,774 313 21,087 97,973 7,472 105,445 2026 - - - 79,516 4,842 84,358 - - - 79,516 4,842 84,358 2027 - - - 81,901 2,457 84,358 - - - 81,901 2,457 84,358 29,241 $ 877 $ 30,118 $ 313,567 $ 23,865 $ 337,432 $ 42,796 $ 1,296 $ 44,092 $ 385,604 $ 26,038 $ 411,642 $ Totals Vehicle Leases Police Equipment Leases Copier Leases ---PAGE BREAK--- - 38 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 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. 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. ---PAGE BREAK--- - 39 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Benefits Provided (Continued) Tier One/Tier Two Retirement Benefit (Continued) 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. 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. ---PAGE BREAK--- - 40 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Benefits Provided (Continued) OPSRP Pension Program (Continued) 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, 2020 actuarial valuation. The rates based on a percentage of payroll, first became effective July 1, 2021. The City’s contribution rates for the period were 21.24% for Tier One/Tier Two members, 15.73% for OPSRP General Service members, and 20.09% for OPSRP Police and Fire members. The City’s total contributions exclusive of the 6% “pick-up” was $2,116,468. 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 $684,616 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. Pension Assets, Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2023, the City reported a liability of $13,244,694 for its proportionate share of the OPERS net pension liability. The net pension liability was measured as of June 30, 2022, and the net pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2020 rolled forward to June 30, 2022. 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, 2022, the City’s proportion was 0.0865%, compared to 0.0798% from its proportion measured as of June 30, 2021. ---PAGE BREAK--- - 41 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) For the year ended June 30, 2023, the City recognized pension expense of $91,518. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred outflows of resources related to pensions of $2,116,468 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, 2024. 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: Differences between expected and actual $ 642,923 $ 82,596 experience Changes of assumptions 2,078,164 18,986 Net difference between projected and actual earnings on investments - 2,367,895 Changes in proportionate share 1,286,959 898,933 Differences between employer contributions and proportionate share of contributions 1,460,231 1,519,732 Contributions subsequent to measurement date 2,116,468 - Total $ 7,584,745 $ 4,888,142 Deferred Outflows of Resources Deferred Inflows of Resources Fiscal Year Ending June 30, 2024 $ 417,279 2025 51,629 2026 (918,800) 2027 1,058,441 2028 (28,414) Total $ 580,135 ---PAGE BREAK--- - 42 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 PENSION PLAN – OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (Continued) Actuarial Methods and Assumptions The net pension liability in the December 31, 2020 actuarial valuation was determined using the following actuarial methods and assumptions: 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 2020 experience study which reviewed experience for the four-year period ending on December 31, 2020. ---PAGE BREAK--- - 43 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 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. Discount Rate The discount rate used to measure the net pension liability was 6.90% 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 net pension liability. ---PAGE BREAK--- - 44 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 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 6.90%, 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 (5.90%) or 1-percentage-point higher (7.90%) than the current rate: 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, 2023. 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 $226,482 to the plan for the year ended June 30, 2023. 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. Proportionate share of the net pension liability $ 23,488,319 $ 13,244,694 $ 4,671,253 1% Decrease (5.90%) Discount Rate (6.90%) 1% Increase (7.90%) ---PAGE BREAK--- - 45 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 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 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 GASB Statement No. 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. Implicit Rate Subsidy Plan PERS RHIA Plan Total OPEB on Financials Net OPEB asset - $ 215,766 $ 215,766 $ Deferred Outflows of Resources Differences between expected and actual experience 107,692 - 107,692 Change in assumptions 13,428 1,689 15,117 Changes in proportionate share 54,397 15,460 69,857 Contributions subsequent to measurement date - 1,339 1,339 Total Deferred Outflows of Resources 175,517 18,488 194,005 Total OPEB Liability 736,125 - 736,125 Deferred Inflows of Resources Differences between expected and actual experience 17,385 5,847 23,232 Change in assumptions 163,731 7,192 170,923 Net difference between projected and actual earnings - 16,455 16,455 Changes in proportionate share - 10,302 10,302 Total Deferred Inflows of Resources 181,116 39,796 220,912 OPEB Expense/(Income) 4,980 (23,351) (18,371) ---PAGE BREAK--- - 46 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Implicit Rate Subsidy (Continued) As of the valuation date of July 1, 2020, the following employees were covered by the benefit terms: 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 $736,125 was measured as of June 30, 2022, and was determined by an actuarial valuation as of December 31, 2020. For the fiscal year ended June 30, 2023, the City recognized OPEB expense from this plan of $4,980. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred outflows of resources related to OPEB of $54,397 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, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Inactive employees or beneficiaries receiving benefits 8 Active employees 128 136 Deferred Outflow Deferred Inflow of Resources of Resources Differences between expected and actual experience 107,692 $ 17,385 $ Changes of assumptions 13,428 163,731 Contributions subsequent to measurement date 54,397 - Total 175,517 $ 181,116 $ Year ended June 30: 2024 (17,517) $ 2025 (17,517) 2026 (17,517) 2027 (12,320) 2028 257 Thereafter 4,618 Total (59,996) $ ---PAGE BREAK--- - 47 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Actuarial Assumptions and Other Inputs The total OPEB liability for the June 30, 2023 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 2.16%, 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 The effect of changes in assumptions is the result of the change in the discount rate from 2.21 to 2.16. 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 (1.16 percent) or 1 percentage point higher (3.16 percent) than the current discount rate. A similar sensitivity analysis is then presented for changes in the healthcare trend assumption. Total OPEB Liability Balance as of June 30, 2022 679,774 $ Changes for the year: Service cost 61,305 Interest on total OPEB liability 15,588 Effect of economic/demographic gains or losses 120,513 Effect of assumptions changes or inputs (102,061) Benefit payments (38,994) Balance as of June 30, 2023 736,125 $ Discount Rate: 1% Decrease (2.54%) Current Discount Rate (3.54%) 1% Increase (4.54%) Total OPEB Liability 796,125 $ 736,125 $ 680,849 $ 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 659,883 $ 736,125 $ 825,848 $ ---PAGE BREAK--- - 48 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 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, 2020 actuarial valuation. The rates based on a percentage of payroll, first became effective July 1, 2022. The City’s contribution rates for the period were 0.05% for Tier One/Tier Two members. The City’s total contributions for the year ended June 30, 2023 were $1,339. OPEB Assets, Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2023, the City reported an asset of $215,766 for its proportionate share of the OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2022 and was determined by an actuarial valuation as of December 31, 2020, rolled forward to June 30, 2022. 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, 2022 the City’s proportionate share was 0.0607%, which is an increase from its proportion of 0.0709% as of June 30, 2021. ---PAGE BREAK--- - 49 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) PERS Retirement Health Insurance Account (Continued) For the year ended June 30, 2023, the City recognized OPEB income from this plan of $26,029. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred outflows of resources related to OPEB of $1,339 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, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: 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. Deferred Outflow of Resources Deferred Inflow of Resources - $ 5,847 $ 1,689 7,192 - 16,455 15,460 10,302 1,339 - Total 18,488 $ 39,796 $ Net difference between projected and actual earnings Change in proportionate share Contributions subsequent to measurement date Differences between expected and actual experience Changes of assumptions Year ended June 30: 2024 (12,668) $ 2025 (4,864) 2026 (10,384) 2027 5,270 Total (22,646) $ ---PAGE BREAK--- - 50 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 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 6.90%, 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 (5.90%) or 1 percentage point higher (7.90%) than the current rate: 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 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. 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. 1% Decrease (5.90%) Discount Rate (6.90%) 1% Increase (7.90%) Net OPEB liability (asset) (194,466) $ (215,766) $ (234,025) $ Transfers In Governmental funds General $ - $ 8,840 $ - $ 433,190 $ 19,230 $ 26,180 $ 6,530 $ 493,970 Street & Storm Capital Construction - - 1,000,000 2,075,066 - - - 3,075,066 Other non-major 665,224 - - 1,610,954 60,000 150,000 - 2,486,178 Transfers Out $ 665,224 $ 8,840 $ 1,000,000 $ 4,119,210 $ 79,230 $ 176,180 $ 6,530 $ 6,055,214 Business-type funds Transfers Out Governmental funds Total Transfers In General Non-major Water Operations Sewer Operations Internal Service Street SDC Building Inspection ---PAGE BREAK--- - 51 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2023 SUBSEQUENT EVENT Management has evaluated subsequent events through December 2023, the date on which the financial statements were available to be used. In July 2023, the City fully paid its obligations on the 2018 Water Revenue Refunding Bond. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- See notes to required supplementary information. - 52 - CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET – BUDGETARY FUNDS REPORTED AS GENERAL FUND JUNE 30, 2023 General Fund PERS Reserve Total (reported as General Fund) ASSETS Cash and investments 14,680,260 $ 391,120 $ 15,071,380 $ Accounts receivable 1,017,581 - 1,017,581 Property taxes receivable 406,467 - 406,467 Prepaid expenses 22,860 - 22,860 Total Assets 16,127,168 $ 391,120 $ 16,518,288 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Accounts payable 865,290 $ - $ 865,290 $ Accrued payroll and payroll liabilities 1,313,035 - 1,313,035 Total Liabilities 2,178,325 - 2,178,325 Deferred Inflows Unavailable revenue 372,663 - 372,663 Fund Balance Non-spendable 22,860 - 22,860 Committed to: Retirement - 391,120 391,120 Unassigned 13,553,320 - 13,553,320 Total Fund Balance 13,576,180 391,120 13,967,300 Total Liabilities, Deferred Inflows and Fund Balance 16,127,168 $ 391,120 $ 16,518,288 $ Budgetary funds ---PAGE BREAK--- See notes to required supplementary information. - 53 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGETARY FUNDS REPORTED AS GENERAL FUND YEAR ENDED JUNE 30, 2023 General Fund PERS Reserve Eliminations Total (reported as General Fund) REVENUES Taxes and assessments 11,695,449 $ - $ - $ 11,695,449 $ Licenses and permits 2,866,329 - - 2,866,329 Charges for services 993,454 - - 993,454 Intergovernmental 2,269,076 - - 2,269,076 Fines and forfeitures 512,030 - - 512,030 Miscellaneous 917,436 - - 917,436 Total Revenues 19,253,774 - - 19,253,774 EXPENDITURES Current General government 3,049,438 - - 3,049,438 Economic development 1,310,841 - - 1,310,841 Public safety 9,201,756 - - 9,201,756 Culture and recreation 3,313,607 - - 3,313,607 Capital outlay 100,945 - - 100,945 Total Expenditures 16,976,587 - - 16,976,587 REVENUES OVER (UNDER) EXPENDITURES 2,277,187 - - 2,277,187 OTHER FINANCING SOURCES (USES) Transfers in 409,710 208,000 (123,740) 493,970 Transfers out (788,964) - 123,740 (665,224) Proceeds from sales of assets 44,250 - - 44,250 Total Other Financing Sources (Uses) (335,004) 208,000 - (127,004) NET CHANGE IN FUND BALANCE 1,942,183 208,000 - 2,150,183 FUND BALANCE, beginning of year 11,633,997 183,120 - 11,817,117 FUND BALANCE, end of year 13,576,180 $ 391,120 $ - $ 13,967,300 $ Budgetary funds ---PAGE BREAK--- See notes to required supplementary information. - 54 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND (BUDGETARY BASIS) YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Taxes and assessments 11,041,560 $ 11,041,560 $ 11,695,449 $ 653,889 $ Licenses and permits 304,940 304,940 397,398 92,458 Franchise fees 2,037,160 2,037,160 2,468,931 431,771 Charges for services 963,700 963,700 993,454 29,754 Intergovernmental 1,896,800 3,396,800 2,269,076 (1,127,724) Fines and forfeitures 1,045,050 1,045,050 512,030 (533,020) Miscellaneous 443,360 443,360 917,436 474,076 Total Revenues 17,732,570 19,232,570 19,253,774 21,204 EXPENDITURES Administration 2,238,230 2,178,230 1,777,403 400,827 Economic development 273,220 288,220 284,503 3,717 Nondepartmental 804,250 3,054,250 1,272,034 1,782,216 Police 9,583,820 9,628,820 9,201,756 427,064 Community services 3,910,125 3,910,125 3,414,552 495,573 Planning 774,065 774,065 680,123 93,942 Engineering 382,720 382,720 346,216 36,504 Contingency 4,491,610 3,741,610 - 3,741,610 Total Expenditures 22,458,040 23,958,040 16,976,587 6,981,453 REVENUES OVER (UNDER) EXPENDITURES (4,725,470) (4,725,470) 2,277,187 7,002,657 OTHER FINANCING SOURCES (USES) Transfers in 681,000 681,000 409,710 (271,290) Transfers out (834,950) (834,950) (788,964) 45,986 Proceeds from sale of assets 25,250 25,250 44,250 19,000 Total Other Financing Sources (Uses) (128,700) (128,700) (335,004) (206,304) NET CHANGE IN FUND BALANCE (4,854,170) (4,854,170) 1,942,183 6,796,353 FUND BALANCE, beginning of year 8,663,050 8,663,050 11,633,997 2,970,947 FUND BALANCE, end of year 3,808,880 $ 3,808,880 $ 13,576,180 $ 9,767,300 $ Budget Amounts ---PAGE BREAK--- See notes to required supplementary information. - 55 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – PERS RESERVE FUND (BUDGETARY BASIS) YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES - $ - $ - $ - $ EXPENDITURES Personal services 391,120 391,120 - 391,120 REVENUES OVER (UNDER) EXPENDITURES (391,120) (391,120) - 391,120 OTHER FINANCING SOURCES (USES) Transfers in 208,000 208,000 208,000 - NET CHANGE IN FUND BALANCE (183,120) (183,120) 208,000 391,120 FUND BALANCE, beginning of year 183,120 183,120 183,120 - FUND BALANCE, end of year - $ - $ 391,120 $ 391,120 $ Budget Amounts ---PAGE BREAK--- See notes to required supplementary information. - 56 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - BUILDING INSPECTION FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance Licenses and permits 2,259,380 $ 2,259,380 $ 2,043,119 $ (216,261) $ Intergovernmental 1,661,000 1,661,000 787,716 (873,284) Miscellaneous 13,000 13,000 167,256 154,256 Total Revenues 3,933,380 3,933,380 2,998,091 (935,289) EXPENDITURES Building inspection 3,163,850 3,163,850 2,184,664 979,186 Contingency 7,038,690 7,038,690 - 7,038,690 Total Expenditures 10,202,540 10,202,540 2,184,664 8,017,876 REVENUES OVER (UNDER) EXPENDITURES (6,269,160) (6,269,160) 813,427 7,082,587 OTHER FINANCING SOURCES (USES) Transfers out (8,840) (8,840) (8,840) - NET CHANGE IN FUND BALANCE (6,278,000) (6,278,000) 804,587 7,082,587 FUND BALANCE, beginning of year 6,278,000 6,278,000 6,466,846 188,846 FUND BALANCE, end of year - $ - $ 7,271,433 $ 7,271,433 $ Budget Amounts ---PAGE BREAK--- See notes to required supplementary information. - 57 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM LAST TEN FISCAL YEARS1 City's proportion of the net pension liability (asset) City's proportionate share of the net pension liability (asset) City's covered payroll City's proportionate share of the net pension liability (asset) as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 2014 0.1145% 5,842,512 $ 7,956,480 $ 73.4% 92.0% 2015 0.1145% (2,595,126) 8,048,595 -32.2% 103.6% 2016 0.1224% 7,026,676 8,457,225 83.1% 91.9% 2017 0.1081% 16,230,093 8,344,438 194.5% 80.5% 2018 0.0994% 13,401,200 8,800,124 152.3% 83.1% 2019 0.0856% 12,969,468 8,950,436 144.9% 82.1% 2020 0.0912% 15,782,405 8,868,978 178.0% 80.2% 2021 0.0778% 16,979,947 10,145,281 167.4% 75.8% 2022 0.0798% 9,545,486 9,855,515 96.9% 87.6% 2023 0.0865% 13,244,694 10,504,778 126.1% 84.5% ---PAGE BREAK--- See notes to required supplementary information. - 58 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S CONTRIBUTIONS OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM LAST TEN FISCAL YEARS Contractually required contributions Contributions in relation to the contractually required Contribution deficiency (excess) City's covered payroll Contributions as a percentage of covered payroll 2014 1,022,429 $ (1,022,429) $ - $ 8,048,595 $ 12.70% 2015 1,046,147 (1,046,147) - 8,457,225 12.37% 2016 1,096,838 (1,096,838) - 8,344,438 13.14% 2017 1,034,667 (1,034,667) - 8,800,124 11.76% 2018 1,347,984 (1,347,984) - 8,950,436 15.06% 2019 1,407,165 (1,407,165) - 8,868,978 15.87% 2020 1,874,810 (1,874,810) - 10,145,281 18.48% 2021 1,620,295 (1,620,295) - 9,855,515 16.44% 2022 1,733,222 (1,733,222) - 10,504,778 16.50% 2023 2,116,468 (2,116,468) - 13,139,706 16.11% ---PAGE BREAK--- See notes to required supplementary information. - 59 - CITY OF WOODBURN, OREGON SCHEDULE OF CHANGES IN TOTAL OTHER POST-EMPLOYMENT BENEFITS LIABILITY AND RELATED RATIOS - IMPLICIT RATE SUBSIDY LAST SIX FISCAL YEARS1 2023 2022 2021 2020 2019 2018 Service cost 61,305 $ 59,512 $ 44,820 $ 39,806 $ 47,892 $ 51,565 $ Interest on total OPEB liability 15,588 15,120 23,775 24,532 25,949 21,016 Effect of economic/demographic gains or (losses) 120,513 - (15,430) - (16,512) - Effect of assumption change or inputs (102,061) 2,791 (21,415) 20,318 (96,751) (46,746) Benefit payments (38,994) (44,391) (38,599) (49,862) (37,144) (32,401) Net change in total OPEB liability 56,351 33,032 (6,849) 34,794 (76,566) (6,566) Total OPEB liability, beginning 679,774 646,742 653,590 618,796 695,362 701,928 Total OPEB liability, ending 736,125 $ 679,774 $ 646,741 $ 653,590 $ 618,796 $ 695,362 $ Covered-employee payroll 13,139,706 $ 10,504,778 $ 9,855,515 $ 10,145,281 $ 8,868,978 $ 8,950,436 $ Total OPEB liability as a % of covered-employee payroll 5.6% 6.5% 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 meet the criteria in paragraph 4 of GASB Statement No. 75 to pay the OPEB benefit for the implicit rate subsidy OPEB plan. 1 10-year trend information required by GASB Statement 75 will be presented prospectively ---PAGE BREAK--- See notes to required supplementary information. - 60 - 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 SEVEN FISCAL YEARS 1 City's proportion of the net OPEB liability (asset) City's proportionate share of the net OPEB liability (asset) City's covered payroll City's proportionate share of the net OPEB liability (asset) as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 2017 0.0869% 23,610 $ 8,344,438 $ 0.3% 94.2% 2018 0.0815% (34,002) 8,800,124 -0.4% 108.9% 2019 0.0825% (92,049) 8,950,436 -1.0% 124.0% 2020 0.0815% (157,485) 8,868,978 -1.8% 124.0% 2021 0.0505% (102,836) 10,145,281 -1.0% 150.1% 2022 0.0709% (243,371) 9,855,515 -2.5% 183.9% 2023 0.0607% (215,766) 10,504,778 -2.1% 194.6% 1 10-year trend information required by GASB Statement 75 will be presented prospectively ---PAGE BREAK--- See notes to required supplementary information. - 61 - CITY OF WOODBURN, OREGON SCHEDULE OF THE CITY’S CONTRIBUTIONS OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM RETIREE HEALTH INSURANCE ACCOUNT LAST SEVEN FISCAL YEARS 1 Contractually required contributions Contributions in relation to the contractually required Contribution deficiency (excess) City's covered payroll Contributions as a percentage of covered payroll 2017 38,765 $ (38,765) $ - $ 8,800,124 $ 0.44% 2018 40,561 (40,561) - 8,950,436 0.45% 2019 39,580 (39,580) - 8,868,978 0.45% 2020 40,436 (40,436) - 10,145,281 0.40% 2021 5,106 (5,106) - 9,855,515 0.05% 2022 1,497 (1,497) - 10,504,778 0.01% 2023 1,339 (1,339) - 13,139,706 0.01% 1 10-year trend information required by GASB Statement 75 will be presented prospectively ---PAGE BREAK--- - 62 - CITY OF WOODBURN, OREGON NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2023 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--- - 63 - CITY OF WOODBURN, OREGON NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2023 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) Other Postemployment Benefits (OPEB) The tables on pages 59-61 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 to pay the OPEB benefit for the implicit rate subsidy OPEB plan. ---PAGE BREAK--- SUPPLEMENTARY INFORMATION ---PAGE BREAK--- - 64 - CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 Street Transit Asset Forfeiture ASSETS Cash and investments 4,738,715 $ 225,884 $ 18,145 $ Accounts receivable 246,805 705,078 - Property taxes receivable - - - Assessment liens receivable - - - Loans receivable - - - Prepaids - - - Total Assets 4,985,520 $ 930,962 $ 18,145 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities: Accounts payable 435,104 $ 17,556 $ - $ Retainage payable 5,196 - - Total Liabilities 440,300 17,556 - Deferred Inflows: Unavailable revenue - - - Fund Balance: Non-spendable - - - Restricted for: Debt service - - - Construction 4,545,220 - - Culture and recreation - 913,406 - Community development - - - Committed to: Public safety - - 18,145 Capital outlay - - - Unassigned - - - Total Fund Balance 4,545,220 913,406 18,145 Total Liabilities, Deferred Inflows and Fund Balance 4,985,520 $ 930,962 $ 18,145 $ Special Revenue ---PAGE BREAK--- - 65 - Capital Projects American Rescue Plan Housing Rehabilitation Lavelle Black Trust Special Assessment Urban Renewal General Capital Construction 2,743,874 $ 28,292 $ 34,070 $ 40,759 $ 1,222,057 $ 472,731 $ - - - - 24,374 - - - - - 32,900 - - - - 12,267 - - - 457,608 - - - - - - - - - 3,300 2,743,874 $ 485,900 $ 34,070 $ 53,026 $ 1,279,331 $ 476,031 $ - $ - $ - $ - $ 136,700 $ 356,866 $ - - - - - 118,322 - - - - 136,700 475,188 - 457,608 - 12,267 29,953 843 - - - - - 3,300 - - - - - - - - - - - - - - 34,070 - - - 2,743,874 28,292 - - 1,112,678 - - - - - - - - - - 40,759 - - - - - - - (3,300) 2,743,874 28,292 34,070 40,759 1,112,678 - 2,743,874 $ 485,900 $ 34,070 $ 53,026 $ 1,279,331 $ 476,031 $ Special Revenue ---PAGE BREAK--- - 66 - CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) JUNE 30, 2023 Parks SDC Storm SDC Equipment Replacement ASSETS Cash and investments 4,418,576 $ 1,111,810 $ 980,014 $ Accounts receivable - - - Property taxes receivable - - - Assessment liens receivable - - - Loans receivable - - - Prepaids - - - Total Assets 4,418,576 $ 1,111,810 $ 980,014 $ LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities: Accounts payable - $ - $ - $ Retainage payable - - - Total Liabilities - - - Deferred Inflows: Unavailable revenue - - - Fund Balance: Non-spendable - - - Restricted for: Debt service - - - Construction 4,418,576 1,111,810 - Culture and recreation - - - Community development - - - Committed to: Public safety - - - Capital outlay - - 980,014 Unassigned - - - Total Fund Balance 4,418,576 1,111,810 980,014 Total Liabilities, Deferred Inflows and Fund Balance 4,418,576 $ 1,111,810 $ 980,014 $ Capital Projects ---PAGE BREAK--- - 67 - Debt Service GO Debt Service Total 14,658 $ 16,049,585 $ - 976,257 22,981 55,881 - 12,267 - 457,608 - 3,300 37,639 $ 17,554,898 $ - $ 946,226 $ - 123,518 - 1,069,744 20,964 521,635 - 3,300 16,675 16,675 - 10,075,606 - 947,476 - 3,884,844 - 18,145 - 1,020,773 - (3,300) 16,675 15,963,519 37,639 $ 17,554,898 $ ---PAGE BREAK--- - 68 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023 Street Transit Asset Forfeiture REVENUES Taxes and assessments 118,032 $ - $ - $ Licenses and permits 67 - - Charges for services - 24 - Intergovernmental 2,073,000 1,732,889 - Fines and forfeitures 465,335 - - Miscellaneous 197,663 19,957 2,845 Total Revenues 2,854,097 1,752,870 2,845 EXPENDITURES Current Culture and recreation - 1,522,595 - Economic development - - - Highways and streets 2,500,405 - - Debt service Principal - - - Interest - - - Capital outlay - - - Total Expenditures 2,500,405 1,522,595 - REVENUES OVER (UNDER) EXPENDITURES 353,692 230,275 2,845 OTHER FINANCING SOURCES (USES) Transfers in 90,000 215,000 - Transfers out (2,032,760) (8,800) - Proceeds from sales of assets - (64) - Total Other Financing Sources (Uses) (1,942,760) 206,136 - NET CHANGE IN FUND BALANCE (1,589,068) 436,411 2,845 FUND BALANCE, beginning of year 6,134,288 476,995 15,300 FUND BALANCE, end of year 4,545,220 $ 913,406 $ 18,145 $ Special Revenue ---PAGE BREAK--- - 69 - Capital Projects American Rescue Plan Housing Rehabilitation Lavelle Black Trust Special Assessment Urban Renewal General Capital Construction - $ - $ - $ - $ 928,018 - $ - - - - - - - - - - - - 2,917,813 - - - 103,720 - - - - - - - 83,728 700 800 3,330 39,465 1,031,604 3,001,541 700 800 3,330 1,071,203 1,031,604 - - - - - - 1,525,911 2,898 - - 525,820 - - - - - - - - - - - 277,000 - - - - - 58,419 - - - - - 339,241 2,913,265 1,525,911 2,898 - - 1,200,480 2,913,265 1,475,630 (2,198) 800 3,330 (129,277) (1,881,661) - - - - - 2,001,178 (474,710) - - - (2,860) - - - - - - - (474,710) - - - (2,860) 2,001,178 1,000,920 (2,198) 800 3,330 (132,137) 119,517 1,742,954 30,490 33,270 37,429 1,244,815 (119,517) 2,743,874 $ 28,292 $ 34,070 $ 40,759 $ 1,112,678 $ - $ Special Revenue ---PAGE BREAK--- - 70 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2023 Parks SDC Storm SDC Equipment Replacement REVENUES Taxes and assessments - $ - $ - $ Licenses and permits 1,781,863 105,664 - Charges for services - - - Intergovernmental - - - Fines and forfeitures - - - Miscellaneous 102,034 26,402 23,744 Total Revenues 1,883,897 132,066 23,744 EXPENDITURES Current Culture and recreation - - - Economic development - - - Highways and streets - - - Debt service Principal - - - Interest - - - Capital outlay - - 169,504 Total Expenditures - - 169,504 REVENUES OVER (UNDER) EXPENDITURES 1,883,897 132,066 (145,760) OTHER FINANCING SOURCES (USES) Transfers in - - 180,000 Transfers out (1,485,954) (114,126) - Proceeds from sales of assets - - - Total Other Financing Sources (Uses) (1,485,954) (114,126) 180,000 NET CHANGE IN FUND BALANCE 397,943 17,940 34,240 FUND BALANCE, beginning of year 4,020,633 1,093,870 945,774 FUND BALANCE, end of year 4,418,576 $ 1,111,810 $ 980,014 $ Capital Projects ---PAGE BREAK--- - 71 - Debt Service GO Debt Service Total 613,579 $ 1,659,629 $ - 1,887,594 - 24 - 6,827,422 - 465,335 10,163 1,542,435 623,742 12,382,439 - 1,522,595 - 2,054,629 - 2,500,405 597,000 874,000 24,835 83,254 - 3,422,010 621,835 10,456,893 1,907 1,925,546 - 2,486,178 - (4,119,210) - (64) - (1,633,096) 1,907 292,450 14,768 15,671,069 16,675 $ 15,963,519 $ ---PAGE BREAK--- - 72 - 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, 2023 Original Final Actual Variance REVENUES Licenses and permits 800,000 $ 800,000 $ - $ (800,000) $ Miscellaneous 8,000 8,000 220,720 212,720 Total Revenues 808,000 808,000 220,720 (587,280) EXPENDITURES Capital outlay 4,545,000 4,545,000 3,295,730 1,249,270 REVENUES OVER (UNDER) EXPENDITURES (3,737,000) (3,737,000) (3,075,010) 661,990 OTHER FINANCING SOURCES (USES) Transfers in 3,362,680 3,362,680 3,075,066 (287,614) NET CHANGE IN FUND BALANCE (374,320) (374,320) 56 374,376 FUND BALANCE, beginning of year 374,320 374,320 441,030 66,710 FUND BALANCE, end of year (budgetary basis) - $ - $ 441,086 $ 441,086 $ Budget Amounts ---PAGE BREAK--- - 73 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - STREET SDC FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Licenses and permits 2,000,000 $ 2,000,000 $ 1,988,329 $ (11,671) $ Miscellaneous 80,000 80,000 301,939 221,939 Total Revenues 2,080,000 2,080,000 2,290,268 210,268 EXPENDITURES Transportation SDC 50,000 50,000 - 50,000 REVENUES OVER (UNDER) EXPENDITURES 2,030,000 2,030,000 2,290,268 260,268 OTHER FINANCING SOURCES (USES) Transfers out (1,000,000) (1,000,000) (1,000,000) - NET CHANGE IN FUND BALANCE 1,030,000 1,030,000 1,290,268 260,268 FUND BALANCE, beginning of year 10,872,190 10,872,190 12,228,145 1,355,955 FUND BALANCE, end of year 11,902,190 $ 11,902,190 $ 13,518,413 $ 1,616,223 $ Budget Amounts ---PAGE BREAK--- - 74 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - STREET FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Taxes and assessments 77,500 $ 77,500 $ 118,032 $ 40,532 $ Licenses and permits 500 500 67 (433) Intergovernmental 1,965,300 1,965,300 2,073,000 107,700 Fines and forfeitures 348,800 348,800 465,335 116,535 Miscellaneous 59,400 59,400 197,663 138,263 Total Revenues 2,451,500 2,451,500 2,854,097 402,597 EXPENDITURES Street 3,511,380 3,411,380 2,500,405 910,975 Contingency 2,473,650 2,473,650 - 2,473,650 Total Expenditures 5,985,030 5,885,030 2,500,405 3,384,625 REVENUES OVER (UNDER) EXPENDITURES (3,533,530) (3,433,530) 353,692 3,787,222 OTHER FINANCING SOURCES (USES) Transfers in 90,000 90,000 90,000 - Transfers out (2,084,500) (2,184,500) (2,032,760) 151,740 Total Other Financing Sources (Uses) (1,994,500) (2,094,500) (1,942,760) 151,740 NET CHANGE IN FUND BALANCE (5,528,030) (5,528,030) (1,589,068) 3,938,962 FUND BALANCE, beginning of year 5,528,030 5,528,030 6,134,288 606,258 FUND BALANCE, end of year - $ - $ 4,545,220 $ 4,545,220 $ Budget Amounts ---PAGE BREAK--- - 75 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - TRANSIT FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Charges for services 41,000 $ 41,000 $ 24 $ (40,976) $ Intergovernmental 2,315,000 2,315,000 1,732,889 (582,111) Miscellaneous 306,000 306,000 19,957 (286,043) Total Revenues 2,662,000 2,662,000 1,752,870 (909,130) EXPENDITURES Transit 2,784,310 2,784,310 1,522,595 1,261,715 Contingency 723,130 723,130 - 723,130 Total Expenditures 3,507,440 3,507,440 1,522,595 1,984,845 REVENUES OVER (UNDER) EXPENDITURES (845,440) (845,440) 230,275 1,075,715 OTHER FINANCING SOURCES (USES) Transfers in 336,000 336,000 215,000 (121,000) Transfers out (8,800) (8,800) (8,800) - Proceeds from sale of assets - - (64) (64) Total Other Financing Sources (Uses) 327,200 327,200 206,136 (121,064) NET CHANGE IN FUND BALANCE (518,240) (518,240) 436,411 954,651 FUND BALANCE, beginning of year 518,240 518,240 476,995 (41,245) FUND BALANCE, end of year - $ - $ 913,406 $ 913,406 $ Budget Amounts ---PAGE BREAK--- - 76 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – ASSET FORFEITURE FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Miscellaneous 200 $ 200 $ 2,845 $ 2,645 $ EXPENDITURES Asset forfeiture 15,560 15,560 - 15,560 NET CHANGE IN FUND BALANCE (15,360) (15,360) 2,845 18,205 FUND BALANCE, beginning of year 15,360 15,360 15,300 (60) FUND BALANCE, end of year - $ - $ 18,145 $ 18,145 $ Budget Amounts ---PAGE BREAK--- - 77 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – AMERICAN RESCUE PLAN FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Intergovernmental 2,917,820 $ 2,917,820 $ 2,917,813 $ $ Miscellaneous 15,000 15,000 83,728 68,728 Total Revenues 2,932,820 2,932,820 3,001,541 68,721 EXPENDITURES American Rescue Plan 1,873,500 1,873,500 1,525,911 347,589 Contingency 1,247,140 1,247,140 - 1,247,140 Total Expenditures 3,120,640 3,120,640 1,525,911 1,594,729 REVENUES OVER (UNDER) EXPENDITURES (187,820) (187,820) 1,475,630 1,663,450 OTHER FINANCING SOURCES (USES) Transfers out (867,000) (867,000) (474,710) 392,290 NET CHANGE IN FUND BALANCE (1,054,820) (1,054,820) 1,000,920 2,055,740 FUND BALANCE, beginning of year 1,054,820 1,054,820 1,742,954 688,134 FUND BALANCE, end of year - $ - $ 2,743,874 $ 2,743,874 $ Budget Amounts ---PAGE BREAK--- - 78 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - HOUSING REHABILITATION FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Miscellaneous 10,530 $ 10,530 $ 700 $ (9,830) $ EXPENDITURES Housing rehab 41,460 41,460 2,898 38,562 NET CHANGE IN FUND BALANCE (30,930) (30,930) (2,198) 28,732 FUND BALANCE, beginning of year 30,930 30,930 30,490 (440) FUND BALANCE, end of year - $ - $ 28,292 $ 28,292 $ Budget Amounts ---PAGE BREAK--- - 79 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LAVELLE BLACK TRUST FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Miscellaneous 300 $ 300 $ 800 $ 500 $ EXPENDITURES Materials and services 7,500 7,500 - 7,500 Contingency 26,060 26,060 - 26,060 Total Expenditures 33,560 33,560 - 33,560 NET CHANGE IN FUND BALANCE (33,260) (33,260) 800 34,060 FUND BALANCE, beginning of year 33,260 33,260 33,270 10 FUND BALANCE, end of year - $ - $ 34,070 $ 34,070 $ Budget Amounts ---PAGE BREAK--- - 80 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SPECIAL ASSESSMENT FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Miscellaneous 3,700 $ 3,700 $ 3,330 $ (370) $ EXPENDITURES Contingency 41,150 41,150 - 41,150 NET CHANGE IN FUND BALANCE (37,450) (37,450) 3,330 40,780 FUND BALANCE, beginning of year 37,450 37,450 37,429 (21) FUND BALANCE, end of year - $ - $ 40,759 $ 40,759 $ Budget Amounts ---PAGE BREAK--- - 81 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – URBAN RENEWAL FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Taxes and assessments 961,590 $ 961,590 $ 928,018 $ (33,572) $ Intergovernmental - - 103,720 103,720 Miscellaneous 92,700 92,700 39,465 (53,235) Total Revenues 1,054,290 1,054,290 1,071,203 16,913 EXPENDITURES Administration Personal services 285,670 285,670 277,660 8,010 Materials and services 287,740 287,740 248,160 39,580 Capital outlay 610,000 610,000 339,241 270,759 Debt service Principal 277,000 277,000 277,000 - Interest 58,420 58,420 58,419 1 Contingency 54,110 54,110 - 54,110 Total Expenditures 1,572,940 1,572,940 1,200,480 372,460 REVENUES OVER (UNDER) EXPENDITURES (518,650) (518,650) (129,277) 389,373 OTHER FINANCING SOURCES (USES) Transfers out (2,860) (2,860) (2,860) - NET CHANGE IN FUND BALANCE (521,510) (521,510) (132,137) 389,373 FUND BALANCE, beginning of year 1,191,510 1,191,510 1,244,815 53,305 FUND BALANCE, end of year 670,000 $ 670,000 $ 1,112,678 $ 442,678 $ Budget Amounts ---PAGE BREAK--- - 82 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Miscellaneous - $ - $ 1,031,604 $ 1,031,604 $ Total Revenues - - 1,031,604 1,031,604 EXPENDITURES Capital outlay 3,273,710 3,273,710 2,913,265 360,445 REVENUES OVER (UNDER) EXPENDITURES (3,273,710) (3,273,710) (1,881,661) 1,392,049 OTHER FINANCING SOURCES (USES) Transfers in 2,388,950 2,388,950 2,001,178 (387,772) NET CHANGE IN FUND BALANCE (884,760) (884,760) 119,517 1,004,277 FUND BALANCE (Deficit), beginning of yea 884,760 884,760 (119,517) (1,004,277) FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 83 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – PARKS SDC FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Licenses and permits 4,000,000 $ 4,000,000 $ 1,781,863 $ (2,218,137) $ Miscellaneous 30,000 30,000 102,034 72,034 Total Revenues 4,030,000 4,030,000 1,883,897 (2,146,103) EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES 4,030,000 4,030,000 1,883,897 (2,146,103) OTHER FINANCING SOURCES (USES) Transfers out (1,827,740) (1,827,740) (1,485,954) 341,786 NET CHANGE IN FUND BALANCE 2,202,260 2,202,260 397,943 (1,804,317) FUND BALANCE, beginning of year 3,972,740 3,972,740 4,020,633 47,893 FUND BALANCE, end of year 6,175,000 $ 6,175,000 $ 4,418,576 $ (1,756,424) $ Budget Amounts ---PAGE BREAK--- - 84 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STORM SDC FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Licenses and permits 60,000 $ 60,000 $ 105,664 $ 45,664 $ Miscellaneous 8,000 8,000 26,402 18,402 Total Revenues 68,000 68,000 132,066 64,066 EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES 68,000 68,000 132,066 64,066 OTHER FINANCING SOURCES (USES) Transfers out (350,000) (350,000) (114,126) 235,874 NET CHANGE IN FUND BALANCE (282,000) (282,000) 17,940 299,940 FUND BALANCE, beginning of year 1,086,020 1,086,020 1,093,870 7,850 FUND BALANCE, end of year 804,020 $ 804,020 $ 1,111,810 $ 307,790 $ Budget Amounts ---PAGE BREAK--- - 85 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – EQUIPMENT REPLACEMENT FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Miscellaneous 10,000 $ 10,000 $ 23,744 $ 13,744 $ EXPENDITURES Capital outlay 1,083,720 1,083,720 169,504 914,216 REVENUES OVER (UNDER) EXPENDITURES (1,073,720) (1,073,720) (145,760) 927,960 OTHER FINANCING SOURCES (USES) Transfers in 180,000 180,000 180,000 - NET CHANGE IN FUND BALANCE (893,720) (893,720) 34,240 927,960 FUND BALANCE, beginning of year 893,720 893,720 945,774 52,054 FUND BALANCE, end of year - $ - $ 980,014 $ 980,014 $ Budget Amounts ---PAGE BREAK--- - 86 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GO DEBT SERVICE FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Taxes and assessments 611,070 $ 611,070 $ 613,579 $ 2,509 $ Miscellaneous 2,010 2,010 10,163 8,153 Total Revenues 613,080 613,080 623,742 10,662 EXPENDITURES Debt service Principal 597,000 597,000 597,000 - Interest 25,510 25,510 24,835 675 Total Expenditures 622,510 622,510 621,835 675 NET CHANGE IN FUND BALANCE (9,430) (9,430) 1,907 11,337 FUND BALANCE, beginning of year 9,430 9,430 14,768 5,338 FUND BALANCE, end of year - $ - $ 16,675 $ 16,675 $ Budget Amounts ---PAGE BREAK--- - 87 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – WATER OPERATIONS COMBINING YEAR ENDED JUNE 30, 2023 Water Water SDC Water Capital Construction Eliminations Total Water Operations REVENUES Charges for services 5,057,977 $ - $ - $ - $ 5,057,977 $ Licenses and permits - 756,404 - - 756,404 Miscellaneous 67,090 - 1,458 - 68,548 Interest earnings 66,279 108,203 7,365 - 181,847 Total Revenues 5,191,346 864,607 8,823 - 6,064,776 EXPENDITURES Water 3,175,988 - - - 3,175,988 Debt service Principal 1,442,000 - - - 1,442,000 Interest 87,171 - - - 87,171 Capital outlay - - 2,858,540 - 2,858,540 Total Expenses 4,705,159 - 2,858,540 - 7,563,699 REVENUES OVER (UNDER) EXPENDITURES 486,187 864,607 (2,849,717) - (1,498,923) OTHER FINANCING SOURCES (USES) Transfers in - - 2,840,066 (2,840,066) - Transfers out (1,444,162) (1,475,134) - 2,840,066 (79,230) Total Other Financing Sources (Uses) (1,444,162) (1,475,134) 2,840,066 - - NET CHANGE IN FUND BALANCE (957,975) (610,527) (9,651) - (1,578,153) FUND BALANCE, beginning of year 3,207,205 4,483,647 721,654 - 8,412,506 FUND BALANCE, end of year 2,249,230 $ 3,873,120 $ 712,003 $ - $ 6,834,353 RECONCILIATION TO NET POSITION- GAAP BASIS Capital assets, net 13,101,124 OPEB asset 19,567 Deferred outflows related to PERS 457,864 Deferred outflows related to OPEB 18,707 Deferred charges on refunding 290 Compensated absences (42,205) Accrued interest payable (5,227) Net pension liability (918,950) OPEB liability (74,833) Long-term debt (2,244,000) Deferred inflows related to PERS (469,708) Deferred inflows related to OPEB (20,676) NET POSITION - GAAP BASIS 16,656,306 $ ---PAGE BREAK--- - 88 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL - WATER FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Charges for services 4,628,280 $ 4,628,280 $ 5,057,977 $ 429,697 $ Miscellaneous 67,110 67,110 67,090 (20) Interest earnings 31,750 31,750 66,279 34,529 Total Revenues 4,727,140 4,727,140 5,191,346 464,206 EXPENDITURES Water 3,075,830 3,175,830 3,175,988 (158) Debt service Principal 1,442,000 1,442,000 1,442,000 - Interest 87,200 87,200 87,171 29 Contingency 153,800 53,800 - 53,800 Total Expenditures 4,758,830 4,758,830 4,705,159 53,671 REVENUES OVER (UNDER) EXPENDITURES (31,690) (31,690) 486,187 517,877 OTHER FINANCING SOURCES (USES) Transfers out (2,025,200) (2,025,200) (1,444,162) 581,038 Proceeds from sale of assets 2,000 2,000 - (2,000) Total Other Financing Sources (Uses) (2,023,200) (2,023,200) (1,444,162) 579,038 NET CHANGE IN FUND BALANCE (2,054,890) (2,054,890) (957,975) 1,096,915 FUND BALANCE, beginning of year 3,276,130 3,276,130 3,207,205 (68,925) FUND BALANCE, end of year 1,221,240 $ 1,221,240 $ 2,249,230 $ 1,027,990 $ Budget Amounts ---PAGE BREAK--- - 89 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - WATER SDC FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Licenses and permits 1,000,000 $ 1,000,000 $ 756,404 $ (243,596) $ Interest earnings 20,000 20,000 108,203 88,203 Total Revenues 1,020,000 1,020,000 864,607 (155,393) EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES 1,020,000 1,020,000 864,607 (155,393) OTHER FINANCING SOURCES (USES) Transfers out (3,000,000) (3,000,000) (1,475,134) 1,524,866 NET CHANGE IN FUND BALANCE (1,980,000) (1,980,000) (610,527) 1,369,473 FUND BALANCE, beginning of year 4,671,010 4,671,010 4,483,647 (187,363) FUND BALANCE, end of year 2,691,010 $ 2,691,010 $ 3,873,120 $ 1,182,110 $ Budget Amounts ---PAGE BREAK--- - 90 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – WATER CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Miscellaneous - $ - $ 1,458 $ 1,458 $ Interest earnings 8,000 8,000 7,365 (635) EXPENDITURES Water capital construction 5,380,000 5,380,000 2,858,540 2,521,460 REVENUES OVER (UNDER) EXPENDITURES (5,372,000) (5,372,000) (2,849,717) 2,522,283 OTHER FINANCING SOURCES (USES) Transfers in 4,945,970 4,945,970 2,840,066 (2,105,904) NET CHANGE IN FUND BALANCE (426,030) (426,030) (9,651) 416,379 FUND BALANCE, beginning of year 426,030 426,030 721,654 295,624 FUND BALANCE, end of year - $ - $ 712,003 $ 712,003 $ Budget Amounts ---PAGE BREAK--- - 91 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – SEWER OPERATIONS COMBINING YEAR ENDED JUNE 30, 2023 Sewer Sewer SDC Sewer Capital Construction Eliminations Total Sewer Operations REVENUES Charges for services 10,006,715 $ - $ - $ - $ 10,006,715 $ Licenses and permits - 1,329,366 - - 1,329,366 Miscellaneous 5,722 - - - 5,722 Interest earnings 346,867 82,417 - - 429,284 Total Revenues 10,359,304 1,411,783 - - 11,771,087 EXPENDITURES Sewer 4,610,595 - - - 4,610,595 Debt service Interest 1,095,402 - - - 1,095,402 Capital outlay - - 3,216,091 - 3,216,091 Total Expenses 5,705,997 - 3,216,091 - 8,922,088 REVENUES OVER (UNDER) EXPENDITURES 4,653,307 1,411,783 (3,216,091) - 2,848,999 OTHER FINANCING SOURCES (USES) Transfers in - - 3,273,201 (3,273,201) - Transfers out (1,414,346) (2,035,035) - 3,273,201 (176,180) Total Other Financing Sources (Uses) (1,414,346) (2,035,035) 3,273,201 - (176,180) NET CHANGE IN FUND BALANCE 3,238,961 (623,252) 57,110 - 2,672,819 FUND BALANCE (Deficit), beginning of year 13,826,924 3,399,631 (57,110) - 17,169,445 FUND BALANCE, end of year 17,065,885 $ 2,776,379 $ - $ - $ 19,842,264 RECONCILIATION TO NET POSITION- GAAP BASIS Capital assets, net 46,064,815 OPEB asset 26,539 Deferred outflows related to PERS 890,026 Deferred outflows related to OPEB 23,420 Compensated absences (19,303) Net pension liability (1,575,941) OPEB liability (93,252) Deferred inflows related to PERS (608,488) Deferred inflows related to OPEB (28,012) NET POSITION - GAAP BASIS 64,522,068 $ ---PAGE BREAK--- - 92 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - SEWER FUND YEAR ENDED JUNE 30, 2023 *Payment on interest related to defeasance is not an overexpenditure of appropriations. Original Final Actual Variance REVENUES Charges for services 9,010,800 $ 9,010,800 $ 10,006,715 $ 995,915 $ Miscellaneous 2,500 2,500 5,722 3,222 Interest earnings 60,000 60,000 346,867 286,867 Total Revenues 9,073,300 9,073,300 10,359,304 1,286,004 EXPENDITURES Sewer 4,925,780 4,925,780 4,610,595 315,185 Debt service Interest - - 1,095,402 (1,095,402) Contingency 246,290 246,290 - 246,290 Total Expenditures 5,172,070 5,172,070 5,705,997 (533,927) REVENUES OVER (UNDER) EXPENDITURES 3,901,230 3,901,230 4,653,307 752,077 OTHER FINANCING SOURCES (USES) Transfers out (7,170,670) (7,170,670) (1,414,346) 5,756,324 NET CHANGE IN FUND BALANCE (3,269,440) (3,269,440) 3,238,961 6,508,401 FUND BALANCE, beginning of year 7,522,950 7,522,950 13,826,924 6,303,974 FUND BALANCE, end of year 4,253,510 $ 4,253,510 $ 17,065,885 $ 12,812,375 $ Budget Amounts ---PAGE BREAK--- - 93 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - SEWER SDC FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Licenses and permits 2,000,000 $ 2,000,000 $ 1,329,366 $ (670,634) $ Interest earnings 30,000 30,000 82,417 52,417 Total Revenues 2,030,000 2,030,000 1,411,783 (618,217) EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES 2,030,000 2,030,000 1,411,783 (618,217) OTHER FINANCING SOURCES (USES) Transfers out (4,465,510) (4,465,510) (2,035,035) 2,430,475 NET CHANGE IN FUND BALANCE (2,435,510) (2,435,510) (623,252) 1,812,258 FUND BALANCE, beginning of year 4,768,970 4,768,970 3,399,631 (1,369,339) FUND BALANCE, end of year 2,333,460 $ 2,333,460 $ 2,776,379 $ 442,919 $ Budget Amounts ---PAGE BREAK--- - 94 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SEWER CAPITAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES - $ - $ - $ - $ EXPENDITURES Sewer capital construction Capital outlay 11,460,000 11,460,000 3,216,091 8,243,909 REVENUES OVER (UNDER) EXPENDITURES (11,460,000) (11,460,000) (3,216,091) 8,243,909 OTHER FINANCING SOURCES (USES) Transfers in 11,460,000 11,460,000 3,273,201 (8,186,799) NET CHANGE IN FUND BALANCE - - 57,110 57,110 FUND BALANCE (Deficit), beginning of year - - (57,110) (57,110) FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 95 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF FUND NET POSITION - INTERNAL SERVICE FUNDS JUNE 30, 2023 Information Technology Insurance Total ASSETS Current Assets Cash and investments 358,550 $ 860,334 $ 1,218,884 $ Accounts receivable 59,506 - 59,506 Total Current Assets 418,056 860,334 1,278,390 Noncurrent Assets Net OPEB Asset - RHIA 5,177 939 6,116 Total Assets 423,233 861,273 1,284,506 DEFERRED OUTFLOWS Deferred outflows related to PERS 227,011 29,764 256,775 Deferred outflows related to OPEB 5,603 777 6,380 232,614 30,541 263,155 LIABILITIES Current Liabilities Accounts payable 22,940 7,965 30,905 Accrued compensated absences 17,399 - 17,399 Total Current Liabilities 40,339 7,965 48,304 Noncurrent Liabilities Accrued compensated absences 26,099 - 26,099 Net pension liability - PERS 433,026 47,852 480,878 Total OPEB liability - Implicit rate subsidy 21,183 2,932 24,115 Total Noncurrent Liabilities 480,308 50,784 531,092 Total Liabilities 520,647 58,749 579,396 DEFERRED INFLOWS Deferred inflows related to PERS 108,136 22,003 130,139 Deferred inflows related to OPEB 5,713 871 6,584 113,849 22,874 136,723 NET POSITION Restricted for: OPEB - RHIA 5,351 821 6,172 Unrestricted 16,000 809,370 825,370 Total Net Position 21,351 $ 810,191 $ 831,542 $ ---PAGE BREAK--- - 96 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2023 Information Technology Insurance Total OPERATING REVENUES Charges for services 1,359,720 $ 773,090 $ 2,132,810 $ Miscellaneous 106 2,559 2,665 Total Operating Revenues 1,359,826 775,649 2,135,475 OPERATING EXPENSES Personal services 552,473 74,232 626,705 Materials and services 752,296 711,483 1,463,779 Total Expenses 1,304,769 785,715 2,090,484 OPERATING INCOME 55,057 (10,066) 44,991 NONOPERATING REVENUES (EXPENSES) Investment revenue 6,844 13,466 20,310 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 61,901 3,400 65,301 Transfers out (5,700) (830) (6,530) Non-cash transfers out (169,752) - (169,752) CHANGE IN NET POSITION (113,551) 2,570 (110,981) NET POSITION, beginning of year 134,902 807,621 942,523 NET POSITION, end of year 21,351 $ 810,191 $ 831,542 $ ---PAGE BREAK--- - 97 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2023 Information Technology Insurance Totals CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 1,368,114 $ 775,649 $ 2,143,763 $ Paid to suppliers (735,997) (703,518) (1,439,515) Paid to employees (551,669) (74,706) (626,375) Net Cash Provided by Operating Activities 80,448 (2,575) 77,873 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers out (5,700) (830) (6,530) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (169,752) - (169,752) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 6,844 13,466 20,310 Increase in Cash and Investments (88,160) 10,061 (78,099) CASH AND INVESTMENTS, Beginning of year 446,710 850,273 1,296,983 CASH AND INVESTMENTS, End of year 358,550 $ 860,334 $ 1,218,884 $ RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income 55,057 $ (10,066) $ 44,991 $ Change in assets and liabilities Accounts receivable 8,288 - 8,288 Deferred outflows (284) (43) (327) Net OPEB asset - RHIA 760 117 877 Compensated absences payable 3,900 - 3,900 Accounts payable and accrued liabilities 16,299 7,965 24,264 Net pension liability - PERS 101,786 15,612 117,398 Total OPEB liability - Implicit rate subsidy 1,551 238 1,789 Deferred inflows (106,909) (16,398) (123,307) Net Cash Provided by Operating Activities 80,448 $ (2,575) $ 77,873 $ ---PAGE BREAK--- - 98 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – INFORMATION TECHNOLOGY FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Charges for services 1,340,570 $ 1,340,570 $ 1,359,720 $ 19,150 $ Miscellaneous 5,000 5,000 106 (4,894) Interest earnings 5,600 5,600 6,844 1,244 Total Revenues 1,351,170 1,351,170 1,366,670 15,500 EXPENDITURES Information technology 1,315,670 1,495,670 1,473,718 21,952 Contingency 368,800 298,800 - 298,800 Total Expenditures 1,684,470 1,794,470 1,473,718 320,752 REVENUES OVER (UNDER) EXPENDITURES (333,300) (443,300) (107,048) 336,252 OTHER FINANCING SOURCES (USES) Transfers out (5,700) (5,700) (5,700) - NET CHANGE IN FUND BALANCE (339,000) (449,000) (112,748) 336,252 FUND BALANCE, beginning of year 509,000 509,000 507,863 (1,137) FUND BALANCE, end of year 170,000 $ 60,000 $ 395,115 335,115 $ RECONCILIATION TO NET POSITION - GAAP BASIS Net OPEB asset - RHIA 5,177 Deferred outflows related to PERS 227,011 Deferred outflows related to OPEB 5,604 Accrued compensated absences (43,498) Net pension liability - PERS (433,026) Total OPEB liability - Implicit rate subsidy (21,183) Deferred inflows related to PERS (108,136) Deferred inflows related to OPEB (5,713) NET POSITION, GAAP BASIS 21,351 $ Budget Amounts ---PAGE BREAK--- - 99 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – INSURANCE FUND YEAR ENDED JUNE 30, 2023 Original Final Actual Variance REVENUES Charges for services 773,090 $ 773,090 $ 773,090 $ - $ Miscellaneous 500 500 2,559 2,059 Interest earnings 4,500 4,500 13,466 8,966 Total Revenues 778,090 778,090 789,115 11,025 EXPENDITURES Insurance 905,670 905,670 786,189 119,481 Contingency 646,100 646,100 - 646,100 Total Expenditures 1,551,770 1,551,770 786,189 765,581 REVENUES OVER (UNDER) EXPENDITURES (773,680) (773,680) 2,926 776,606 OTHER FINANCING SOURCES (USES) Transfers out (830) (830) (830) - NET CHANGE IN FUND BALANCE (774,510) (774,510) 2,096 776,606 FUND BALANCE, beginning of year 774,510 774,510 850,273 75,763 FUND BALANCE, end of year - $ - $ 852,369 852,369 $ RECONCILIATION TO NET POSITION - GAAP BASIS Net OPEB asset - RHIA 939 Deferred outflows related to PERS 29,764 Deferred outflows related to OPEB 777 Net pension liability - PERS (47,852) Total OPEB liability - Implicit rate subsidy (2,932) Deferred inflows related to PERS (22,003) Deferred inflows related to OPEB (871) NET POSITION, GAAP BASIS 810,191 $ Budget Amounts ---PAGE BREAK--- STATISTICAL SECTION ---PAGE BREAK--- - 100 - 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--- - 101 – CITY OF WOODBURN, OREGON NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental activities Net investment in capital assets 55,195,632 $ 59,266,063 $ 58,326,049 $ 57,813,459 $ 57,789,283 $ 58,807,325 $ 64,447,990 $ 66,566,868 $ 70,723,048 $ 75,088,828 $ Restricted 11,523,032 8,929,025 9,815,650 10,660,016 11,651,202 13,987,334 12,238,720 16,222,715 27,828,278 29,560,790 Unrestricted 6,224,832 4,583,134 923,456 766,265 1,979,126 2,085,955 3,127,228 2,749,034 10,813,820 15,252,225 Total governmental activities net position 72,943,496 $ 72,778,222 $ 69,065,155 $ 69,239,740 $ 71,419,611 $ 74,880,614 $ 79,813,938 $ 85,538,617 $ 109,365,146 $ 119,901,843 $ Business-type activities Net investment in capital assets 19,913,747 $ 21,979,780 $ 23,737,493 $ 37,312,451 $ 42,991,874 $ 43,073,472 $ 46,922,723 $ 48,842,505 $ 51,418,406 $ 56,333,884 $ Restricted for: Construction 18,737,342 16,841,111 16,735,267 16,635,580 17,004,861 17,081,733 17,249,531 6,751,461 8,547,823 7,401,431 Unrestricted 4,666,744 7,163,564 6,909,942 (4,020,472) (6,694,060) (3,417,951) (3,690,855) 11,167,278 14,586,422 17,443,059 Total business-type activities net position 43,317,833 $ 45,984,455 $ 47,382,702 $ 49,927,559 $ 53,302,675 $ 56,737,254 $ 60,481,399 $ 66,761,244 $ 74,552,651 $ 81,178,374 $ Primary government Net investment in capital assets 75,109,379 $ 81,245,843 $ 82,063,542 $ 95,125,910 $ 100,781,157 $ 101,880,797 $ 111,370,713 $ 115,409,373 $ 122,141,454 $ 131,422,712 $ Restricted 30,260,374 25,770,136 26,550,917 27,295,596 28,656,063 31,069,067 29,488,251 22,974,176 36,376,101 36,962,221 Unrestricted 10,891,576 11,746,698 7,833,398 (3,254,207) (4,714,934) (1,331,996) (563,627) 13,916,312 25,400,242 32,695,284 Total primary government net position 116,261,329 $ 118,762,677 $ 116,447,857 $ 119,167,299 $ 124,722,286 $ 131,617,868 $ 140,295,337 $ 152,299,861 $ 183,917,797 $ 201,080,217 $ ---PAGE BREAK--- - 102 - CITY OF WOODBURN, OREGON CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) Expenses 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental activities: General government 2,646,552 $ 3,058,648 $ 5,114,971 $ 2,676,477 $ 2,740,778 $ 1,162,602 $ 4,673,660 $ 2,547,469 $ 3,737,926 $ 12,173,246 $ Public safety 6,608,391 5,662,660 9,231,388 7,805,948 7,573,873 7,687,490 6,982,033 8,934,202 8,021,074 9,379,653 Highways and streets 2,273,271 1,976,022 2,691,040 2,426,489 2,551,662 2,787,782 2,113,284 2,525,497 2,419,718 2,854,368 Culture and recreation 3,530,783 2,784,248 3,481,264 2,980,178 2,799,066 4,226,653 4,139,885 3,753,726 6,670,443 2,746,469 Economic development - - - 829,477 1,139,732 2,023,962 2,025,642 3,021,707 6,907,549 4,069,679 Interest on long-term debt 226,504 204,905 183,342 169,933 108,133 76,949 59,907 46,781 35,369 24,645 Total governmental activities expenses 15,285,501 13,686,483 20,702,005 16,888,502 16,913,244 17,965,438 19,994,411 20,829,382 27,792,079 31,248,060 Business-type activities: Water 2,792,818 2,478,694 3,303,526 2,885,827 3,117,740 3,012,632 2,679,610 3,316,914 3,291,960 3,720,280 Sewer 6,711,162 5,302,994 6,728,773 5,629,532 5,643,125 5,649,231 5,767,483 4,856,593 6,061,286 7,337,611 Total business-type activities expenses 9,503,980 7,781,688 10,032,299 8,515,359 8,760,865 8,661,863 8,447,093 8,173,507 9,353,246 11,057,891 Total primary government expenses 24,789,481 $ 21,468,171 $ 30,734,304 $ 25,403,861 $ 25,674,109 $ 26,627,301 $ 28,441,504 $ 29,002,889 $ 37,145,325 $ 42,305,951 $ Program Revenues Governmental activities: Charges for services: General government 682,238 $ 649,703 $ 978,244 $ 660,502 $ 1,263,142 $ 91,987 $ 243,805 $ 291,774 $ 4,512,831 $ 4,954,458 $ Public safety 627,424 716,467 93,443 113,331 120,152 272,432 243,369 137,642 154,239 270,547 Highways and streets 274,205 6,188 22,519 1,104 7,533 945 2,275 50,622 279,051 215,780 Culture and recreation 517,400 571,921 705,415 565,889 557,725 774,081 573,205 166,835 409,130 444,652 Economic development - - - 457,432 403,044 1,307,278 1,579,828 2,349,952 12,125,795 3,883,136 Operating grants and contributions 1,915,475 1,993,925 1,962,709 2,052,681 2,156,971 2,582,883 4,346,664 2,682,578 2,935,200 3,957,325 Capital grants and contributions 885,093 1,286,163 350,449 266,679 502,857 934,723 2,506,331 5,372,006 11,819,278 6,143,604 Total governmental activities program revenues 4,901,835 5,224,367 4,112,779 4,117,618 5,011,424 5,964,329 9,495,477 11,051,409 32,235,524 19,869,502 Business-type activities: Charges for services: Water 3,166,878 3,277,605 3,415,661 3,293,342 3,399,943 3,804,029 3,990,442 4,330,970 4,707,562 5,057,977 Sewer 7,479,643 7,981,658 8,169,544 8,091,754 8,141,127 8,059,526 8,122,190 8,413,214 9,383,489 10,006,715 Capital grants and contributions 446,971 310,272 307,152 114,664 438,189 376,165 425,801 2,239,137 3,512,282 2,085,770 Total business-type activities program revenues 11,093,492 11,569,535 11,892,357 11,499,760 11,979,259 12,239,720 12,538,433 14,983,321 17,603,333 17,150,462 Total primary government program revenues 15,995,327 $ 16,793,902 $ 16,005,136 $ 15,617,378 $ 16,990,683 $ 18,204,049 $ 22,033,910 $ 26,034,730 $ 49,838,857 $ 37,019,964 $ ---PAGE BREAK--- - 103 - CITY OF WOODBURN, OREGON CHANGES IN NET POSITION (Continued) LAST TEN FISCAL YEARS (accrual basis of accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net(expense)/revenue Governmental activities (10,383,666) $ (8,462,116) $ (16,589,226) $ (12,770,884) $ (12,151,820) $ (12,001,109) $ (10,498,934) $ (9,777,973) $ 4,443,445 $ (11,378,558) $ Business-type activities 1,589,512 3,787,847 1,860,058 2,984,401 3,218,394 3,577,857 4,091,340 6,809,814 8,250,087 6,092,571 Total primary government net expense (8,794,154) $ (4,674,269) $ (14,729,168) $ (9,786,483) $ (8,933,426) $ (8,423,252) $ (6,407,594) $ (2,968,159) $ 12,693,532 $ (5,285,987) $ General Revenues and Other Changes in Net Position Governmental activities: Property taxes 8,234,481 $ 8,836,939 $ 9,156,725 $ 9,724,889 $ 10,301,565 $ 10,467,041 $ 10,908,076 $ 11,169,801 $ 11,789,537 $ 12,754,434 $ Franchise taxes 1,500,730 1,539,926 1,511,125 1,543,317 1,540,440 1,537,523 1,528,351 1,676,564 2,594,751 2,934,866 Other taxes 454,363 437,339 550,346 547,220 712,127 595,650 491,023 596,829 622,953 617,455 Unrestricted investment earnings 96,347 99,620 105,901 200,736 354,201 632,056 517,897 211,337 60,655 1,263,409 Intergovernmental 633,530 655,575 649,350 702,990 728,991 831,319 903,481 975,321 3,789,280 3,892,263 Miscellaneous 117,872 28,620 163,827 101,908 304,920 120,782 32,117 117,092 286,900 256,394 Gain on sale of capital assets (69,877) - 49,948 13,241 25,148 298,208 11,060 10,241 14,868 44,185 Transfers in (out) 663,841 680,212 688,937 650,141 364,299 979,533 1,040,253 745,467 231,350 152,249 Total governmental activities 11,631,287 12,278,231 12,876,159 13,484,442 14,331,691 15,462,112 15,432,258 15,502,652 19,390,294 21,915,255 Business-type activities: Unrestricted investment earnings 125,139 122,988 159,067 283,101 454,022 713,164 622,056 154,209 33,022 611,131 Miscellaneous 302,251 67,461 68,059 86,136 56,386 60,171 71,002 61,289 83,006 74,270 Gain on sale of capital assets - - - 3,505 10,613 62,922 - - 18,910 - Transfers in (out) (663,841) (680,212) (688,937) (650,141) (364,299) (979,533) (1,040,253) (745,467) (231,350) (152,249) Total business-type activities (236,451) (489,763) (461,811) (277,399) 156,722 (143,276) (347,195) (529,969) (96,412) 533,152 Total primary government 11,394,836 $ 11,788,468 $ 12,414,348 $ 13,207,043 $ 14,488,413 $ 15,318,836 $ 15,085,063 $ 14,972,683 $ 19,293,882 $ 22,448,407 $ Change in Net Position Governmental activities 1,247,621 $ 3,816,115 $ (3,713,067) $ 713,558 $ 2,179,871 $ 3,461,003 $ 4,933,324 $ 5,724,679 $ 23,833,739 $ 10,536,697 $ Business-type activities 1,353,061 3,298,084 1,398,247 2,707,002 3,375,116 3,434,581 3,744,145 6,279,845 8,153,675 6,625,723 Total primary government 2,600,682 $ 7,114,199 $ (2,314,820) $ 3,420,560 $ 5,554,987 $ 6,895,584 $ 8,677,469 $ 12,004,524 $ 31,987,414 $ 17,162,420 $ ---PAGE BREAK--- - 104 - CITY OF WOODBURN, OREGON FUND BALANCE OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (accrual basis of accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General fund Nonspendable 740 $ 1,467 $ 936 $ 3,064 $ 18,230 $ 31,972 $ 23,390 $ 24,888 $ 22,319 $ 22,860 $ Committed - - - - - 1,678,280 - - 183,120 391,120 Unassigned 3,577,032 4,159,081 4,889,982 6,249,717 7,472,054 6,246,115 6,812,532 8,521,253 11,611,678 13,553,320 Total general fund 3,577,772 $ 4,160,548 $ 4,890,918 $ 6,252,781 $ 7,490,284 $ 7,956,367 $ 6,835,922 $ 8,546,141 $ 11,817,117 $ 13,967,300 $ All other governmental funds Nonspendable - $ - $ - $ - $ - $ - $ 3,300 $ 3,300 $ 3,300 $ 3,300 $ Unreserved - - - - - - - - - - Restricted 11,348,721 8,092,696 9,091,956 9,984,428 11,013,955 13,387,817 12,493,682 15,719,615 27,338,441 28,880,800 Committed 2,435,919 1,347,789 1,414,631 1,540,863 1,787,763 1,904,955 1,934,257 2,290,851 7,465,349 8,310,351 Total other governmental funds 13,784,640 $ 9,440,485 $ 10,506,587 $ 11,525,291 $ 12,801,718 $ 15,292,772 $ 14,431,239 $ 18,013,766 $ 34,807,090 $ 37,194,451 $ ---PAGE BREAK--- - 105 - CITY OF WOODBURN, OREGON CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (accrual basis of accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenues Taxes and assessments 8,786,364 $ 9,329,720 $ 9,748,024 $ 10,325,164 $ 10,780,981 $ 11,282,658 $ 11,384,659 $ 11,774,892 $ 12,421,675 $ 13,355,078 $ Licenses and permits 2,954,980 3,124,804 2,748,872 2,509,315 3,198,381 3,667,362 3,896,131 5,673,817 21,600,302 8,785,371 Charges for services 901,197 1,351,102 1,364,684 1,260,038 1,153,372 1,422,284 930,786 477,163 1,556,238 993,478 Intergovernmental 2,674,698 3,371,886 2,733,371 2,930,985 3,178,254 3,513,833 6,420,257 7,312,012 8,406,007 9,096,498 Fines & forfeitures 571,831 673,377 426,867 420,305 395,164 343,790 352,400 667,444 2,507,611 1,765,081 Miscellaneous 540,782 454,140 683,371 562,957 784,799 1,193,261 1,306,767 822,465 965,400 3,149,786 Total revenues 16,429,852 18,305,029 17,705,189 18,008,764 19,490,951 21,423,188 24,291,000 26,727,793 47,457,233 37,145,292 Expenditures Current General government 1,641,493 3,164,615 3,790,736 3,257,197 3,447,310 1,361,472 4,397,582 2,317,327 2,080,966 3,049,438 Public safety 6,569,367 6,794,410 6,598,236 6,861,768 6,813,292 7,206,649 2,075,418 3,186,762 8,331,476 9,201,756 Highways and streets 1,003,547 2,005,328 1,777,030 1,529,569 1,808,443 1,994,020 7,574,867 7,708,918 1,647,546 2,500,405 Culture and recreation 3,845,430 4,280,701 2,874,788 2,997,742 3,063,827 3,883,640 1,654,523 1,499,613 3,762,378 4,836,202 Economic development - - - - - 1,965,382 4,028,407 3,090,165 1,458,569 3,365,470 Capital outlay 1,379,516 5,073,930 277,571 473,208 1,309,506 6,578,234 5,540,458 2,347,640 3,893,361 6,818,685 Debt service Principal 560,172 584,429 436,479 400,399 456,675 516,000 1,303,000 1,348,000 6,999,864 3,058,664 Interest 228,861 206,832 185,327 169,937 117,094 70,208 174,881 148,437 108,074 83,254 Total expenditures 15,228,386 22,110,245 15,940,167 15,689,820 17,016,147 23,575,605 26,749,136 21,646,862 28,282,234 32,913,874 Excess of revenues over (under) expenditures 1,201,466 (3,805,216) 1,765,022 2,318,944 2,474,804 (2,152,417) (2,458,136) 5,080,931 19,174,999 4,231,418 Other financing sources (uses) Proceeds from sale of capital assets - - - 19,861 35,415 308,894 22,179 21,815 265,326 44,186 Proceeds from issuance of debt - - - - - 4,600,000 - - - - Incpetion of lease - - - - - - - - 386,335 - Refunding bonds issued - - - - 3,749,000 - - - - - Payment to refunded bond escrow agent - - - - (3,699,114) - - - - - Transfers in 1,430,985 853,858 294,248 419,236 829,268 2,658,488 2,943,348 390,000 2,146,350 6,055,214 Transfers out (1,443,985) (823,259) (252,378) (374,656) (875,443) (2,457,828) (2,489,369) (200,000) (1,908,710) (5,793,274) Total other financing sources (uses) (13,000) 30,599 41,870 64,441 39,126 5,109,554 476,158 211,815 889,301 306,126 Net change in fund balances 1,188,466 (3,774,617) 1,806,892 2,383,385 2,513,930 2,957,137 (1,981,978) 5,292,746 20,064,300 4,537,544 Fund balances at beginning of year 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 46,624,207 Fund balances at end of year 17,362,412 $ 13,587,795 $ 15,394,687 $ 17,778,072 $ 20,292,002 $ 23,249,139 $ 21,267,161 $ 26,559,907 $ 46,624,207 $ 51,161,751 $ Debt service as a percentage of noncapital expenditures 5.7% 4.6% 4.0% 3.7% 3.7% 3.4% 7.1% 7.8% 29.1% 12.0% ---PAGE BREAK--- REVENUE CAPACITY ---PAGE BREAK--- - 106 - 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) 2014 $ 702,053,360 $ 868,480 $ 374,295,240 $ 143,111,800 $ 49,539,001 2015 779,859,386 476,270 376,129,580 148,705,150 53,477,977 2016 830,915,110 878,310 387,086,020 149,051,530 56,599,979 2017 868,154,380 883,320 404,525,450 159,818,080 57,908,292 2018 902,999,410 689,300 415,565,670 148,807,610 62,107,308 2019 932,416,020 942,330 432,522,080 149,454,580 63,865,513 2020 973,117,650 1,842,700 451,512,140 151,172,270 69,785,848 2021 1,008,494,619 1,001,800 461,377,890 151,870,950 69,785,848 2022 1,062,850,539 2,446,550 478,159,800 157,218,590 74,332,770 2023 1,151,511,600 127,873 508,311,846 175,704,768 75,277,840 Source: Marion County Assessor's Office (Schedule 5) ---PAGE BREAK--- - 107 - CITY OF WOODBURN, OREGON MARKET AND ASSESSED VALUE OF TAXABLE PROPERTY (continued) LAST TEN FISCAL YEARS 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 $ 34,316,630 $ 1,304,184,511 $ 6.0534 $ 1,503,013,174 $ 1,751,863,757 74.446% 38,981,380 1,397,629,743 6.0534 1,652,955,312 1,925,612,145 72.581% 31,207,820 1,455,738,769 6.0534 1,778,119,364 2,056,463,271 70.788% 33,592,820 1,524,882,342 6.0534 1,920,324,583 2,207,659,188 69.072% 42,113,077 1,572,282,375 6.0534 2,136,350,540 2,429,890,960 64.706% 52,194,300 1,631,394,823 6.0534 2,347,935,303 2,669,251,668 61.118% 53,712,000 1,701,142,608 6.0534 2,582,277,844 2,921,850,774 58.221% 51,814,596 1,744,345,703 6.0534 2,669,427,103 3,026,488,916 57.636% 50,310,300 1,825,318,549 6.0534 3,229,605,701 3,231,252,761 56.490% 56,481,300 1,967,415,227 6.0534 3,410,514,713 3,411,451,398 57.671% ---PAGE BREAK--- - 108 - 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 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 2022 6.68 2.94 0.05 0.05 2.07 6.87 0.29 0.88 0.08 19.90 2023 6.68 2.93 0.05 0.05 2.06 6.89 0.29 0.87 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--- - 109 - 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 87,665,000 $ 1 4.46% 74,603,023 $ 1 5.72% Woodburn Premium Outlets LLC 33,377,530 2 1.70% 58,810,312 2 4.51% Food Services of America Inc 35,828,810 3 1.82% 28,750,730 3 2.20% Hardware Wholesalers Inc 18,651,390 4 0.95% 15,247,390 5 1.17% Portland General Electric Co 18,298,680 5 0.93% 11,965,986 7 0.92% Wal-Mart Real Estate Business TR 18,333,400 6 0.93% 15,176,790 4 1.16% Northwest Natural Gas Co 17,786,000 7 0.90% 10,273,300 9 0.79% Cascade Meadow LLC 16,065,700 8 0.82% 12,313,050 6 0.94% PVA Holding LLC 14,576,050 9 0.74% 0.00% Crown 2 Development LLC 14,363,420 10 0.73% 11,008,400 8 0.84% Subtotal 274,945,980 13.97% 238,148,981 18.26% All Other 1,692,469,247 86.03% 1,066,035,530 81.73% Totals 1,967,415,227 $ 100.0% 1,304,184,511 $ 100.0% Source: Marion County Assessor's Office 2014 2023 ---PAGE BREAK--- - 110 - 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 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% 292,387 8,845,746 97.70% 2016 9,421,624 8,943,387 94.92% 261,483 9,204,870 97.70% 2017 9,958,340 9,456,995 94.97% 263,301 9,720,296 97.61% 2018 10,323,495 9,832,811 95.25% 244,676 10,077,487 97.62% 2019 10,757,144 10,243,398 95.22% 469,484 10,712,882 99.59% 2020 11,214,218 10,624,844 94.74% 263,478 10,888,322 97.09% 2021 11,474,255 10,946,941 95.40% 354,624 11,301,565 98.49% 2022 12,064,723 11,503,030 95.34% 350,825 11,853,855 98.25% 2023 13,004,397 12,408,746 95.42% 384,500 12,793,246 98.38% 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--- - 111 - 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 2014 4,745,000 $ 401,982 $ 35,126,768 $ 5,194,240 $ 2,555,855 $ 48,023,845 $ 11.74% 24,330 1,974 $ 2015 4,410,000 152,553 32,082,220 4,813,265 2,210,469 43,668,507 10.30% 24,455 1,786 2016 4,060,000 66,074 29,302,005 4,416,251 2,072,315 39,916,645 9.37% 24,670 1,618 2017 3,690,000 35,675 26,384,767 4,002,523 1,934,160 36,047,125 8.28% 24,795 1,454 2018 3,328,000 - 22,893,978 3,571,377 1,796,006 31,589,361 6.79% 24,685 1,280 2019 2,812,000 4,600,000 22,158,072 - 1,657,852 31,227,924 6.72% 24,760 1,265 2020 2,301,000 3,808,000 18,786,241 - 1,519,698 26,414,939 5.68% 25,135 1,070 2021 1,762,000 2,999,000 4,790,100 - - 9,551,100 2.05% 26,[PHONE REDACTED] 1,194,000 2,109,000 3,686,000 - - 6,989,000 1.34% 26,[PHONE REDACTED] 597,000 1,832,000 2,244,000 - - 4,673,000 0.68% 26,664 178 Personal income is disclosed on pg 110 Source: Portland State University Population Research Center Governmental Activities Business-Type Activities ---PAGE BREAK--- - 112 - CITY OF WOODBURN, OREGON RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS 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 2022 26,468 1,825,318,549 1,194,000 14,768 1,179,232 0.06% 45 2023 26,664 1,967,415,227 597,000 17,550 579,450 0.03% 22 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 Fiscal Year Ended June 30 Population(1) Assessed Value(2) Ratio of Net Bonded Debt to Assessed Value Per Capita Full Faith & Credit Bond Less Debt Service Fund Net Bonded Debt ---PAGE BREAK--- - 113 - CITY OF WOODBURN, OREGON DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT JUNE 30, 2023 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. Percent City's Total Within Pro Rata Net Debt City Share Direct: City of Woodburn 597,000 $ * 100% 597,000 $ Overlapping: Chemeketa Community College 83,385,000 4.10% 3,417,201 Marion County 28,678,990 6.18% 1,772,189 Marion Cty SD 103 (Woodburn) 65,705,000 85.13% 55,935,389 Willamette ESD 5,724,823 3.74% 213,982 Total overlapping 183,493,813 61,338,761 TOTAL 184,090,813 $ 61,935,761 $ Source: Debt Management Division, Oregon State Treasury Excluding Revenue Bonds and Urban Renewal Loan Jurisdiction ---PAGE BREAK--- - 114 - CITY OF WOODBURN, OREGON LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Debt Limit 52,555,913 $ 57,768,364 $ 61,693,898 $ 66,229,776 $ 72,896,729 $ 80,077,550 $ 87,655,523 $ 90,794,667 $ 96,937,583 $ 102,343,542 $ Total net debt applicable to limit 4,745,000 4,410,000 4,060,000 3,690,000 3,328,000 2,812,000 2,301,000 1,762,000 1,194,000 597,000 Legal debt margin* 47,810,913 53,358,364 57,633,898 $ 62,539,776 $ 69,568,729 $ 77,265,550 $ 85,354,523 $ 89,032,667 $ 95,743,583 $ 101,746,542 $ the limit as a percentage of debt limit 9.03% 7.63% 6.58% 5.57% 4.57% 3.51% 2.63% 1.94% 1.23% 0.58% *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--- - 115 - 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 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 2022 7,597 6,266,433 2,797,026 3,469,407 282% 1,104,000 124,597 11,469,733 4,219,544 7,250,189 2724% - 266,113 2023 7,676 6,078,153 3,166,891 2,911,262 190% 1,442,000 87,171 11,842,289 4,610,595 7,231,694 660% - 1,095,402 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--- - 116 - 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 2013 24,090 391,438,410 $ 16,249 $ 32.0 8.7% 2014 24,330 409,181,940 16,818 31.4 7.3% 2015 24,455 424,049,700 17,340 32.8 6.1% 2016 24,670 426,124,910 17,273 33.6 5.3% 2017 24,795 435,226,635 17,553 33.4 4.5% 2018 24,685 465,040,715 18,839 32.9 4.0% 2019 24,760 466,082,240 18,824 33.5 4.2% 2020 25,135 520,797,200 20,720 33.9 4.2% 2021 26,250 585,663,750 22,311 38.1 5.4% 2022 26,468 614,507,556 23,217 38.6 4.4% 2023 26,664 690,597,600 25,900 39.2 3.5% 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) ---PAGE BREAK--- - 117 - 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 Woodburn School District 650-675 1 5.72% 625-650 1 6.97% Bruce Packing Co., Inc. 600-625 2 5.30% 300-325 5 3.41% Winco Foods 575-600 3 4.98% 450-475 3 4.96% US Foods Inc. 480-500 4 4.23% - - - Wal Mart Associates Inc 300-325 5 2.76% 300-325 4 3.47% Fleetwood Homes Inc. 250-275 6 2.29% 100-125 12 1.27% RMZ Labor Contractor LLC 175-200 7 1.68% - - - City of Woodburn 150-175 8 1.46% 200-225 6 2.19% Kerr Contractors Oregon Inc. 150-175 9 1.38% 125-150 10 1.31% Al's Garden Centers & Greenhouses 150-175 10 1.29% 100-125 14 1.10% Do It Best Corp 125-150 11 1.25% 75-100 15 1.07% Brother Farm Labor Contractor LLC 125-150 12 1.21% - - - Safeway Stores, Inc. 125-150 13 1.11% 100-125 11 1.29% Wolfers Heating and Air Conditioning 125-150 14 1.04% 25-50 46 0.42% Nike Retail Services, Inc. 100-125 15 1.01% 125-150 8 1.51% Woodburn Health Center 100-125 16 0.98% 75-100 16 0.96% Fjord LLC 100-125 17 0.96% 75-100 18 0.88% Salud Medical Center 100-125 18 0.95% 100-125 13 1.11% Wave 100-125 19 0.95% 75-100 21 0.83% Universal Forest Products Woodburn LLC 100-125 20 0.87% 50-75 26 0.67% Oregon Child Development Coalition 75-100 21 0.82% 125-150 9 1.39% Country Meadows Village LLC 75-100 22 0.70% 50-75 22 0.78% Truss T Structures Inc 75-100 23 0.66% 50-75 32 0.59% French Prairie Nursing & Rehab 75-100 24 0.65% - - - United Pacific Forest Products 50-75 25 0.58% 75-100 20 0.85% Dominguez Labor Contractor Inc. 50-75 26 0.57% - - - Woodburn Mega Foods 50-75 27 0.56% 50-75 27 0.67% Gem Equipment of Oregon 50-75 28 0.54% 75-100 17 0.95% McDonalds 50-75 29 0.50% 25-50 38 0.48% Woodburn Denny's LLC 50-75 30 0.49% - - - Ashland Brothers Landscaping Inc 50-75 31 0.48% - - - Wilbur-Ellis Co LLC 50-75 32 0.48% 50-75 30 0.63% TJ Maxx 50-75 33 0.47% - - - Jam Labor Services LLC 25-50 34 0.42% - - - Patrick Industries Oregon Division 25-50 35 0.41% - - - United Disposal Service Inc 25-50 36 0.41% 25-50 40 0.47% Woodburn Ambulance Service Inc 25-50 37 0.40% 25-50 36 0.53% McDonalds 25-50 38 0.40% - - - Darigold Inc 25-50 39 0.39% - - - Tree Top Inc 25-50 40 0.39% 50-75 25 0.70% Home Care Workers 25-50 41 0.37% - - - Red Robin Gourmet Burgers & Brews 25-50 42 0.37% - - - Sherwin-Williams Manufacturing Co. 25-50 43 0.36% - - - The Cleaning Authority 25-50 44 0.36% 25-50 49 0.38% The North Face 25-50 45 0.36% - - - Panera Café 25-50 46 0.35% - - - Silver Creek Care Properties LLC 25-50 47 0.34% - - - Columbia Brands USA LLC 25-50 48 0.34% - - - Under Armour Retail Inc 25-50 49 0.34% 25-50 35 0.53% Heartwood Place 25-50 50 0.33% - - - Subtotal 6,432 55.26% 3,894 42.37% All Other 5,208 44.74% 5,297 57.63% Total 11,640 100.0% 9,191 100.0% 2023 2013 Source: City of Woodburn Economic Development Department and Oregon Employment Department ---PAGE BREAK--- OPERATING INFORMATION ---PAGE BREAK--- - 118 - CITY OF WOODBURN, OREGON FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS Budgeted 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function General government 21.5 21.5 20.9 20.9 21.7 23.1 23.1 24.6 25.4 27.4 29.2 Public safety 39.6 41.1 42.6 42.7 43.6 43.6 43.6 45.8 44.5 44.5 49.0 Highways and streets 14.0 14.0 11.8 12.8 12.8 13.0 14 14 21.3 15.5 16.5 Culture and recreation 45.8 49.9 50.1 51.0 51.2 51.7 57.8 58.3 41.5 55.4 59.7 Economic development - - 1.0 0.5 1.0 1.0 0.9 0.9 2.0 2.0 1.0 Sewer 15.0 15.0 15.0 14.0 14.0 14.0 14 14 12.0 12.0 16.0 Water 11.0 11.0 11.0 11.0 11.0 11.0 10.5 10.5 10.0 10.0 11.5 Total 146.8 152.5 152.4 152.9 155.3 157.4 163.9 168.1 156.7 166.8 182.9 Source: Annual Adopted Budget Book and City Records Actual ---PAGE BREAK--- - 119 - CITY OF WOODBURN, OREGON OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function Police Police calls 18,145 17,062 14,744 14,934 15,679 14,848 13,423 13,702 13,813 * Authorized staffing 32 32 34 34 34 35 35 36 36 Arrests 1,777 1,441 1,003 1,060 989 956 881 882 799 * Offenses 3,212 3,119 2,871 3,408 3,534 2,952 3,257 2,572 2,685 * Culture and recreation Park Acreage 110 110 110 128 128 128 128 128 128 * Library attendance 138,607 132,575 135,317 125,153 114,987 116,223 82,066 18,206 35,562 * Aquatics attendance 144,459 148,885 144,810 140,834 164,646 170,415 111,145 - 22,871 * Sports, programs, and event attendance 12,459 12,200 29,424 30,578 32,701 36,521 29,779 - 15,092 * Public transportation Fixed route rides 34,222 34,869 32,684 25,533 24,786 22,374 14,405 17,492 21,927 * Dial-A-Ride trips 5,097 11,842 6,221 6,224 6,952 6,696 5,271 5,679 8,559 * Out of town medical rides 1,972 2,441 1,321 1,473 1,445 2,368 1,850 1,377 925 * Community development Building permits issued 279 230 386 171 226 160 161 322 406 * Water Production capacity 2mgd 2 mgd 2mgd 2mgd 2mgd 2mgd 2mgd 2.6mgd 2.5mgd * Customers served 6,843 6,770 6,843 6,942 7,116 7,315 7,212 7,634 7,802 * 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 * *Information unavailable at this time Source: FY 2022-23 Budget: City Statistics - Services ---PAGE BREAK--- - 120 - CITY OF WOODBURN, OREGON CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 65 65 65 65 65 67 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 6317 6414 6479 6503 6558 6558 6642 6976 7120 7186 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--- - 121 - CITY OF WOODBURN, OREGON WATER SYSTEM COVERAGE CALCULATION LAST TEN FISCAL YEARS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Customer Accounts 4,426 4,844 5,393 5,950 6,579 6,760 6,617 7,197 7,250 7,676 Revenues: Charges for Services 3,166,879 $ 3,277,605 $ 3,415,661 $ 3,293,342 $ 3,399,943 $ 3,804,029 $ 3,990,472 $ 4,330,970 $ 4,707,562 $ 5,059,119 $ Miscellaneous 303,593 60,055 67,290 58,922 79,062 120,234 61,379 56,410 80,579 75,939 Interest 7,498 9,078 12,425 22,231 39,618 62,422 59,579 24,401 15,658 66,335 SDC 164,993 151,517 115,606 76,430 227,986 216,164 334,389 1,058,194 1,462,634 876,760 Total Gross Revenues 3,642,963 3,498,255 3,610,982 3,450,925 3,746,609 4,202,849 4,445,819 5,469,975 6,266,433 6,078,153 Operating Expenditures Personal Services 1,244,302 1,168,912 1,172,688 1,284,183 1,382,962 1,349,044 1,463,652 1,574,854 1,533,505 1,846,915 Materials & Services 736,473 834,953 885,257 875,184 923,878 1,210,952 760,029 1,174,436 1,263,521 1,319,976 Total Operating Expenses 1,980,775 2,003,865 2,057,945 2,159,367 2,306,840 2,559,996 2,223,681 2,749,290 2,797,026 3,166,891 Water Fund Balance, End of Year 5,020,007 $ 5,358,699 $ 5,755,638 $ 3,473,585 $ 3,757,916 $ 4,242,704 $ 5,042,842 $ 6,200,092 $ 7,283,652 $ 7,582,183 $ Net Revenues 1,662,188 1,494,390 1,553,037 1,291,558 1,439,769 1,642,853 2,222,138 2,720,685 3,469,407 2,911,262 Total Debt Service 1,159,628 1,155,698 1,156,098 1,156,097 1,155,438 1,158,065 1,422,000 1,563,435 1,228,597 1,529,171 Debt Service Coverage 143% 129% 134% 112% 125% 142% 156% 174% 282% 190% ---PAGE BREAK--- - 122 - CITY OF WOODBURN, OREGON MAJOR WATER SYSTEM CUSTOMERS YEAR ENDED JUNE 30, 2023 # Customer Name Industry Charges % of Total Charges 1 SPECIALTY POLYMER Industrial 66,016 $ 1.3% 2 CASCADE MEADOWS APARTMENTS Multi Family 60,641 1.2% 3 WOODBURN PREMIUM OUTLETS, LLC Commercial 54,516 1.1% 4 STONEHEDGE COURT Multi Family 46,992 1.0% 5 HARVARD MEADOWS Multi Family 36,012 0.7% 6 AMERICOLD LOGISTICS Commercial 35,974 0.7% 7 WOODBURN WEST MOBILE ESTATES Multi Family 33,719 0.7% 8 MARION CO HOUSING AUTHORITY Multi Family 30,059 0.6% 9 COUNTRY MEADOWS VILLAGE Multi Family 27,007 0.5% 10 TOWNSEND FARMS INC Industrial 26,187 0.5% Subtotal 417,123 $ Total Water Charges 4,924,519 $ ---PAGE BREAK--- COMPLIANCE SECTION ---PAGE BREAK--- - 123 - 475 Cottage Street NE, Suite 200, Salem, OR 97301 T: [PHONE REDACTED] E: [EMAIL REDACTED] www.redw.com/gms 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, 2023 and have issued our report thereon dated December 29, 2023. 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 for the City had expenditures in excess of appropriations in the Water fund. ---PAGE BREAK--- - 124 - 475 Cottage Street NE, Suite 200, Salem, OR 97301 T: [PHONE REDACTED] E: [EMAIL REDACTED] www.redw.com/gms Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. Restriction on Use This report is intended solely for the information and use of the council members and management of the City of Woodburn and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. GROVE, MUELLER & SWANK CERTIFIED PUBLIC ACCOUNTANTS By: Ryan T. Pasquarella, Principal December 29, 2023