Document Woodburn_doc_df6ce86103

CITY OF WOODBURN, OREGON Annual Financial Report Year Ended June 30, 2012 ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page INTRODUCTORY SECTION Principal Officials v FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3-9 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets 10 Statement of Activities 11 Fund Financial Statements Balance Sheet - Governmental Funds 12 Reconciliation of Balance Sheet - Governmental Funds to the Statement of Net Assets 13 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 14 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities 15 Statement of Fund Net Assets - Proprietary Funds 16 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 17 Statement of Cash Flows - Proprietary Funds 18-19 Statement of Fiduciary Net Assets 20 Statement of Changes in Fiduciary Net Assets 21 Notes to Basic Financial Statements 22-44 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund 45 OTHER SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Street SDC Fund 46 Reconciliation of Budgetary Funds to Reporting Funds – General Fund Balance Sheet 47 Schedule of Revenues, Expenditures and Changes in Fund Balance 48 Nonmajor Governmental Funds Combining Balance Sheet 49-51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 52-54 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Transit Fund 55 Building Fund 56 Search and Seizure Fund 57 Weed and Seed Fund 58 Revenue Sharing Fund 59 Housing Rehabilitation Fund 60 RSVP Fund 61 ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page FINANCIAL SECTION (Continued) OTHER SUPPLEMENTARY INFORMATION (Continued) Nonmajor Governmental Funds (Continued) Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Continued) Cable Franchise Fund 62 Streets Fund 63 Local Gas Tax Fund 64 Library Endowment Fund 65 Museum Endowment Fund 66 Economic Development Fund 67 Lavelle Black Trust Fund 68 Police Construction Fund 69 General Construction Fund 70 Special Assessment Fund 71 Street/Storm Capital Improvement Fund 72 Parks SDC Fund 73 Storm SDC Fund 74 PW Facility Construction Fund 75 Equipment Replacement Fund 76 GO Debt Fund 77 Bancroft Bond Fund 78 Urban Renewal Debt Fund 79 Nonmajor Proprietary Funds Combining Statement of Fund Net Assets - Enterprise Funds 80 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Enterprise Funds 81 Combining Statement of Cash Flows - Enterprise Funds 82 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP Basis) and Actual – Enterprise Funds Water Fund 83 Sewer Fund 84 WWTP Construction Fund 85 WWDC Fund 86 Sewer Capital Improvement Fund 87 Water SDC Fund 88 Sewer SDC Fund 89 Surfacewater Fund 90 Internal Services Funds Combining Statement of Fund Net Assets - Internal Service Funds 91 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Internal Service Funds 92 Combining Statement of Cash Flows - Internal Service Funds 93 Schedules of Revenues, Expenses and Changes in Fund Balances (Budgetary Basis) - Budget and Actual Information Services Fund 94 Central Stores Fund 95 Insurance Fund 96 Technical and Environmental Services Fund 97 Building Maintenance Fund 98 ---PAGE BREAK--- CITY OF WOODBURN, OREGON TABLE OF CONTENTS Page FINANCIAL SECTION (Continued) OTHER SUPPLEMENTARY INFORMATION (Continued) Other Financial Schedules Schedule of Property Tax Transactions and Outstanding Balances 99 Schedule of Bond and Bond Interest Transactions 100-101 Schedule of Future Debt Service Requirements 102-103 REGULATORY SECTION INDEPENDENT AUDITOR'S REPORT REQUIRED BY OREGON STATE REGULATIONS 104-105 ---PAGE BREAK--- v CITY OF WOODBURN, OREGON JUNE 30, 2012 MAYOR AND COUNCIL MEMBERS Name Term Expires Mayor Figley December 31, 2012 601 S. Settlemeier Woodburn, OR 97071 Council Members Richard Pugh December 31, 2012 1880 Woodland Avenue Woodburn, OR 97071 J. Mel Schmidt December 31, 2012 840 Hermanson Street Woodburn, OR 97071 Eric Morris December 31, 2012 1505 Hardcastle Avenue Woodburn, OR 97071 Pete McCallum December 31, 2014 370 Ironwood Terrace Woodburn, OR 97071 Jim Cox December 31, 2014 1530 Ranier Way Woodburn, OR 97071 Frank Lonergan December 31, 2014 245 N 2nd Street Woodburn, OR 97071 Staff Scott Derickson, City Administrator N. Robert Shields, City Attorney Christina Shearer, Finance Director ---PAGE BREAK--- - 1 - 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Council Members City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and aggregate remaining fund information of the City of Woodburn, Oregon as of and for the year ended June 30, 2012, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Woodburn, Oregon as of June 30, 2012 and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2012 on our consideration of the City’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis (MD&A) and budgetary comparison information for the General Fund on pages 3 through 9 and 45 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the MD&A in accordance with auditing standards ---PAGE BREAK--- - 2 - 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 comparison information on page 45 has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respected in relation to the financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements as a whole. The combining and individual fund financial statements and schedules and other financial schedules are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The other financial schedules have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS By: Thomas E. Glogau, A Shareholder December 27, 2012 ---PAGE BREAK--- - 3 - CITY OF WOODBURN Year Ended June 30, 2012 MANAGEMENT’S DISCUSSION AND ANALYSIS The Management's Discussion and Analysis of the City of Woodburn's Annual Financial Report (AFR) presents a discussion and analysis of the City's financial performance during the fiscal year ended June 30, 2012. 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, 2012. 2012 2011 change Net assets 111,565,887 $ 109,157,985 $ 2,407,902 $ Change in net assets 2,407,902 3,467,074 (1,059,172) Governmental activities net assets 70,359,567 69,117,217 1,242,350 Business-type activities net assets 41,206,320 40,040,768 1,165,552 June 30, OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City of Woodburn's basic financial statements. The basic financial statements include three components: the government-wide financial statements, the fund financial statements and notes to the financial statements. This report also contains other required supplementary information. Government-wide financial statements. The government-wide financial statements present the net assets (statement of net assets) and results of operations (statement of activities) of the total reporting government. Included are all governmental and business-type assets, liabilities and activities of the City. The measurement focus and basis of accounting are the same for the entire entity. The measurement focus is on all economic resources of the fund, 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 assets presents information on all the City of Woodburn's assets and liabilities, with the difference between the two reported as net assets. Increases or decreases in net assets may indicate whether the City's financial position is improving or deteriorating. The statement of activities presents the expenses incurred in providing services to the public and the revenues associated with those activities for both governmental and business-type activities. The statement of activities begins with expenses by function. To these functions are applied charges for services, operating grants and contributions and capital grants and contributions. The resulting sums, with some adjustments, represent charges to general taxpayers and may equate to the nearest that governments can determine the "bottom line." ---PAGE BREAK--- - 4 - The government-wide financial statements are divided into two categories. Governmental activities are services funded through property taxes and intergovernmental revenues. The governmental activities for the City of Woodburn include general government, public safety, highways and streets, and culture and recreation. Business- type activities are operations funded primarily through charges to external users of goods and services. Business- type activities include water and wastewater. Fund Financial Statements. A fund is a fiscal and accounting entity with a self-balancing set of accounts that is used to segregate resources that are restricted to a particular activity. The use of funds deters commingling of resources designated for a specific purpose, prevents unauthorized transfer of surpluses, and ensures compliance with legal and contractual requirements. The City of Woodburn has three types of fund categories: governmental funds, proprietary funds, and a fiduciary fund. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources and use the modified accrual basis of accounting. Operating statements include all sources and uses of financial resources, and display the excess of revenues and other financial sources over (under) expenditures and other uses. Included in the balance sheet are liquid assets and receivables that will be converted into cash currently and short-term liabilities, including payables to vendors and employees. Unmatured bond principal or liabilities for compensated absences not to be paid in the fiscal year are not included. Because the governmental fund statements do not encompass the long-term focus of the government-wide statements, reconciliations are provided on the subsequent page of the governmental fund statements. The emphasis is on major funds that account for the predominant assets and activities of all funds. The City of Woodburn maintains twenty-seven individual governmental funds. Information is presented separately for the General Fund and Street SDC Fund in the Governmental Fund Balance Sheet and Statement of Revenue, Expenditures and Changes in Fund Balances. The other governmental funds are combined into a single, aggregated presentation. Information for these non-major governmental funds is provided in the form of combining statements. The City of Woodburn adopts an annual appropriated budget for all of its funds. Budgetary comparison statements, demonstrating compliance with this budget, have been provided. Proprietary Funds. The City of Woodburn maintains two different types of proprietary funds: enterprise and internal service funds. These funds are used to show activities that operate more like those of commercial enterprises. Fees are charged for services provided, both to outside customers and to other units of the City of Woodburn. Enterprise funds are presented as business-type activities in the government-wide financial statements. The City of Woodburn uses enterprise funds to account for its water and wastewater activities. Internal service funds account for activities furnishing goods or services to other units of the government. Charges for these services are on a cost-reimbursement basis. The internal services funds include central stores, insurance, facility maintenance, information services, public works administration and engineering services. The internal service funds are reported with governmental activities in the government-wide financial statements. Proprietary fund statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water, Sewer, Wastewater Treatment Plant (WWTP) Construction, and Water Well Development (WWD) Construction funds. The internal service funds are combined into a single column in the proprietary fund financial statements. Notes to the Financial Statements. The notes to the financial statements are an integral part of the basic financial statements and should be read along with them. The notes provide additional information necessary to communicate the financial position of the City of Woodburn. ---PAGE BREAK--- - 5 - Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required and supplementary information concerning the City of Woodburn. GOVERNMENT-WIDE FINANCIAL ANALYSIS The City of Woodburn had $168,324,873 in total assets and $56,758,986 in total liabilities, resulting in combined net assets of $111,565,887 for governmental and business-type activities. The largest component of the City's net assets, reflects its investment in capital assets land, buildings, equipment and infrastructure, less any related debt outstanding that was needed to acquire or construct the assets). The City of Woodburn uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. Governmental capital assets, net of depreciation, increased $3,044,303 over the prior year due to the start of the Highway 214 project and continuation of the Centennial Park, Greenway and Fifth Street projects. Increases to the governmental capital assets should continue to decrease year over year as the various projects are completed. Business-type capital assets, net of depreciation decreased $35,186 over the prior year due to depreciation which offset the continuation of the wastewater treatment plant upgrade and the water line extension project. It should be noted that business-type capital assets will continue to increase as the next phases of the wastewater treatment plant upgrade begin. Total liabilities for both governmental and business-type activities increased by $15,010,185 from the prior year due to the new enterprise fund debt. Overall, the City's financial position changed by $2,407,902 (or This is due mainly to the addition and completion of several capital projects, as noted above. Statement of Net Assets The following table reflects the condensed Statement of Net Assets compared to the prior year. Governmental Business-type Governmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total Activities Activities Total Cash and investments 15,432,365 $ 23,963,357 $ 39,395,722 $ 15,214,590 $ 6,048,848 $ 21,263,438 $ 217,775 $ 17,914,509 $ 18,132,284 $ Other assets 1,743,325 908,644 2,651,969 1,831,269 1,179,974 3,011,243 (87,944) (271,330) (359,274) Capital assets 60,676,927 65,600,255 126,277,182 60,293,805 66,338,300 126,632,105 383,122 (738,045) (354,923) Total Assets 77,852,617 90,472,256 168,324,873 77,339,664 73,567,122 150,906,786 512,953 16,905,134 17,418,087 Other liabilities 521,350 751,030 1,272,380 1,237,558 3,158,343 4,395,901 (716,208) (2,407,313) (3,123,521) Long-term liabilities 6,971,700 48,514,906 55,486,606 6,984,889 30,368,011 37,352,900 (13,189) 18,146,895 18,133,706 Total Liabilities 7,493,050 49,265,936 56,758,986 8,222,447 33,526,354 41,748,801 (729,397) 15,739,582 15,010,185 Net assets: Invested in capital assets, net of related debt 54,443,478 31,042,855 85,486,333 53,552,571 33,878,782 87,431,353 890,907 (2,835,927) (1,945,020) Restricted 9,460,498 935,770 10,396,268 9,407,166 542,268 9,949,434 53,332 393,502 446,834 Unrestricted 6,455,591 9,227,695 15,683,286 6,157,480 5,619,718 11,777,198 298,111 3,607,977 3,906,088 Total Net Assets 70,359,567 $ 41,206,320 $ 111,565,887 $ 69,117,217 $ 40,040,768 $ 109,157,985 $ 1,242,350 $ 1,165,552 $ 2,407,902 $ Change 2012 2011 Governmental Activities The City’s net assets from governmental activities increased $1,242,350 from 2010-11 to 2011-12. ---PAGE BREAK--- - 6 - Business-type Activities The City’s net assets from business-type activities increased $1,165,552 from 2010-11 to 2011-12. Statement of Activities The following table reflects the condensed Statement of Activities compared to the prior year. Business- Business- Business- Governmental type Government type Governmen type Activities Activities Total Activities Activities Total Activities Activities Total Revenues Program Revenues Charges for service 2,321,980 $ 9,535,915 $ 11,857,895 2,054,971 $ 8,852,694 $ $ 10,907,665 267,009 $ 683,221 $ $ 950,230 Operating grants and contributions 1,911,075 - 1,911,075 1,491,298 - 1,491,298 419,777 - 419,777 Capital grants and contributions 522,817 437,817 960,634 540,889 1,824,635 2,365,524 (18,072) (1,386,818) (1,404,890) Total Program Revenues 4,755,872 9,973,732 14,729,604 4,087,158 10,677,329 14,764,487 668,714 (703,597) (34,883) General Revenues Property taxes 8,495,199 - 8,495,199 8,460,151 - 8,460,151 35,048 - 35,048 Franchise taxes 1,776,101 - 1,776,101 1,768,058 - 1,768,058 8,043 - 8,043 Intergovernmental 533,738 - 533,738 557,619 - 557,619 (23,881) - (23,881) Other 299,156 74,063 373,219 130,113 27,710 157,823 169,043 46,353 215,396 Total General Revenues 11,104,194 74,063 11,178,257 10,915,941 27,710 10,943,651 188,253 46,353 234,606 Total Revenues 15,860,066 10,047,795 25,907,861 15,003,099 10,705,039 25,708,138 856,967 (657,244) 199,723 Expenses (Net of Indirect Expenses) General government 2,116,264 - 2,116,264 2,038,098 - 2,038,098 78,166 - 78,166 Public safety 6,733,302 - 6,733,302 6,175,907 - 6,175,907 557,395 - 557,395 Highways and streets 2,202,753 - 2,202,753 2,903,846 - 2,903,846 (701,093) - (701,093) Culture and recreation 4,019,379 - 4,019,379 3,413,838 - 3,413,838 605,541 - 605,541 Interest 257,018 - 257,018 286,145 - 286,145 (29,127) - (29,127) Water - 2,901,104 2,901,104 - 2,428,964 2,428,964 - 472,140 472,140 Sewer - 5,270,139 5,270,139 - 4,994,266 4,994,266 - 275,873 275,873 Total Expenses 15,328,716 8,171,243 23,499,959 14,817,834 7,423,230 22,241,064 510,882 748,013 1,258,895 Changes in Net Assets Before Transfers 531,350 1,876,552 2,407,902 185,265 3,281,809 3,467,074 346,085 1,691,287 2,037,372 Transfers 711,000 (711,000) - 181,789 (181,789) - 529,211 (529,211) - Change in Net Assets 1,242,350 1,165,552 2,407,902 367,054 3,100,020 3,467,074 875,296 1,162,076 2,037,372 - - Beginning Net Assets, as adjusted 69,117,217 40,040,768 109,157,985 68,750,163 36,940,748 105,690,911 367,054 3,100,020 3,467,074 Ending Net Assets 70,359,567 $ 41,206,320 $ 111,565,887 $ 69,117,217 $ 40,040,768 $ 109,157,985 $ 1,242,350 $ 4,262,096 $ 5,504,446 $ 2012 2011 Change Governmental Activities. Total revenues for the City of Woodburn's governmental activities were $15,860,066 for the fiscal year ended June 30, 2012. Approximately 54% of the total revenue for the governmental activities was derived from property taxes and approximately 15% of the total revenue was from grants. Total expenses for governmental activities were $15,328,716 and net transfers in were $711,000 resulting in a $1,242,350 increase in net assets. General governmental activities accounted for approximately 14% of the total governmental activities expense. Public Safety, Culture and Recreation and Highways and Streets expenses account for 41% of the total, and interest on long-term debt expenses was less than 1% of total governmental activities expenses. Business-Type Activities. Revenues of business-type activities totaled $10,047,795 for the current fiscal year. These activities generated $9,973,732 in program revenues. Approximately 95% of the total business-type activities revenue was derived from charges for services. The total expenses for business-type activities were $8,171,243 and net transfers out were $711,000 resulting in an $1,165,552 increase in net assets. Business-type activities for the City of Woodburn consist of operations for water and wastewater services. ---PAGE BREAK--- - 7 - FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted previously, the City of Woodburn uses fund accounting to segregate resources that are restricted to a particular activity. Fund balance represents the excess of the assets of the fund over its liabilities. Because the fund financial statements focus on current sources and uses of spendable resources, unreserved fund balances relating to each fund may be useful in assessing the government's net resources available. Special Revenue Funds whose primary source of funding is transfers from the General Fund are reported as part of the General Fund. Therefore, in the Governmental Funds Statement of Assets and Liabilities and the Statement of Receipts, Disbursements and Changes in Fund Balances, the General Reserve Fund has been combined with the General Fund. Governmental Funds. At the end of the fiscal year, there was $14,735,701 of fund balance of the governmental funds, an increase of $579,046 from the prior year. The City's governmental funds include the General Fund and Street SDC funds and other non-major funds. The General Fund is the chief operating fund of the City. At the end of the fiscal year, a fund balance of $2,744,299 was reported by the General Fund. The fund balance increased by $298,160 from the previous year. The City of Woodburn reports one other major governmental fund, the Street SDC Fund. This fund had a fund balance of $5,398,189 , a decrease of $474,124 from the previous year. Proprietary Funds. Net assets of the proprietary funds equaled $41,206,320 at the end of the current fiscal year. The net asset increase of $1,165,552 from the previous year was due mainly to the decrease in expenses which were greater than the decrease in revenues. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended to decrease Library expenditures by $10,000 and increase transfers out by the same amount. Actual revenues (budgetary basis), were within 1% of budgeted amounts. General Fund expenditures ended $2,320,119 below budgeted amounts primarily due to management efforts to contain costs throughout the fiscal year. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City of Woodburn's investment in capital assets for its governmental and business-type activities equaled $60,676,927 and $65,600,255 respectively, at the end of the current fiscal year, net of accumulated depreciation. This investment includes land, buildings, improvements, equipment, and infrastructure. Additional information about the City's capital assets is presented in the notes to the financial statements. ---PAGE BREAK--- - 8 - 2012 2011 Land 22,567,381 $ 22,567,381 $ - % Construction in progress 1,909,356 9,504,993 (79.91) Equipment 5,690,040 5,869,352 (3.06) Building 15,897,131 8,611,272 84.61 Infrastructure 37,241,093 35,228,583 5.71 Accumulated depreciation (22,628,074) (24,148,957) (6.30) Total 60,676,927 $ 57,632,624 $ 5.28 % Activities Governmental 2011-2012 Change Percentage Total 2012 2011 Land 1,783,816 $ 1,783,816 $ - % Construction in progress 3,532,785 7,162,827 (50.68) Equipment 1,899,873 2,729,540 (30.40) Building 62,340,008 62,323,573 0.03 Infrastructure 28,315,347 23,107,823 22.54 Accumulated depreciation (32,271,574) (31,472,138) 2.54 Total 65,600,255 $ 65,635,441 $ (0.05) % Business-type Activities Total Percentage Change 2011-2012 Long-term Debt. At the end of the current fiscal year, long-term debt outstanding for the governmental activities totaled $6,233,449 (excluding compensated absences payable), compared to $6,741,234 in the prior year. For the business-type activities, total long-term debt equaled $48,415,376 (excluding compensated absences payable) compared to $32,459,518 in the prior year. The increase is due to new debt incurred in the current year. Additional information about the City's long-term debt outstanding is presented in the notes to the financial statements. Change 2012 2011 2011-2012 Loans 180,213 $ 204,441 $ (24,228) $ Urban Renewal bonds 6,053,236 6,536,793 (483,557) Total 6,233,449 $ 6,741,234 $ (507,785) $ Governmental Activities ---PAGE BREAK--- - 9 - Change 2012 2011 2011-2012 Revenue bonds 42,504,729 $ 6,778,648 $ 35,726,081 $ Loans 5,910,647 25,680,870 (19,770,223) Total 48,415,376 $ 32,459,518 $ 15,955,858 $ Business-type Activities ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES Due to reductions in the real property valuations, it is expected that future property taxes increases will be less than the three percent allowed annually on existing real property value as compression on certain properties will be realized. Currently, the housing market in Marion is depressed due to the national housing slump and economic conditions. We continue to expect revenues to be impacted by the current national and local conditions. REQUESTS FOR INFORMATION This financial report is designed to provide the City of Woodburn's citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. Questions about this report or requests for additional financial information should be addressed to the City of Woodburn, 270 Montgomery Street, Woodburn, Oregon 97071. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 10 - CITY OF WOODBURN, OREGON STATEMENT OF NET ASSETS JUNE 30, 2012 Governmental Business-type Activities Activities Totals ASSETS Cash and investments 15,432,365 $ 23,963,357 $ 39,395,722 $ Accounts receivable 313,320 562,949 876,269 Property taxes receivable 732,201 - 732,201 Assessment liens receivable 769,083 - 769,083 Internal balances (71,279) 71,279 - Unamortized bond issue costs - 274,416 274,416 Non-depreciable capital assets 24,476,737 5,316,600 29,793,337 Other capital assets, net of depreciation 36,200,190 60,283,655 96,483,845 Total Assets 77,852,617 90,472,256 168,324,873 LIABILITIES Accounts payable 405,332 170,765 576,097 Deposits payable 93,471 93,471 186,942 Accrued interest payable 22,547 486,794 509,341 Noncurrent liabilities: Due within one year: - Long-term debt 526,295 2,486,879 3,013,174 Due in more than one year: Long-term debt 5,707,154 45,928,497 51,635,651 Accrued compensated absenses 738,251 99,530 837,781 Total Liabilities 7,493,050 49,265,936 56,758,986 NET ASSETS Invested in capital assets, net of related debt 54,443,478 31,042,855 85,486,333 Restricted for: Debt service 1,702,513 - 1,702,513 Culture and recreation 193,424 - 193,424 Construction 7,564,561 935,770 8,500,331 Unrestricted 6,455,591 9,227,695 15,683,286 Total Net Assets 70,359,567 $ 41,206,320 $ 111,565,887 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 Fees, Fines Operating Capital and Charges Grants and Grants and Expenses for Services Contributions Contributions FUNCTIONS/PROGRAMS Governmental activities: General government 2,116,264 $ 266,789 $ - $ 8,407 $ Public safety 6,733,302 874,614 9,610 - Highways and streets 2,202,753 490,640 1,312,024 420,586 Culture and recreation 4,019,379 689,937 589,441 93,824 Interest on long-term debt 257,018 - - - Total Governmental activities 15,328,716 2,321,980 1,911,075 522,817 Business-type activities: Water 2,901,104 3,297,812 - 271,288 Sewer 5,270,139 6,238,103 - 166,529 Total Business-type activities 8,171,243 9,535,915 - 437,817 Total Activities 23,499,959 $ 11,857,895 $ 1,911,075 $ 960,634 $ General Revenues: Property taxes Franchise taxes Intergovernmental Proceeds from disposition of assets Unrestricted investment earnings Miscellaneous Total General Revenues Transfers Change in net assets Net Assets - beginning of year, as originally stated Prior period adjustment Net Assets - beginning of year, as adjusted Net Assets - end of year Program Revenues ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 11 - Governmental Business-type Activities Activities Totals (1,841,068) $ - $ (1,841,068) $ (5,849,078) - (5,849,078) 20,497 - 20,497 (2,646,177) - (2,646,177) (257,018) - (257,018) (10,572,844) - (10,572,844) - 667,996 667,996 - 1,134,493 1,134,493 - 1,802,489 1,802,489 (10,572,844) 1,802,489 (8,770,355) 8,495,199 - 8,495,199 1,776,101 - 1,776,101 533,738 - 533,738 - 5,892 5,892 46,992 67,709 114,701 252,164 462 252,626 11,104,194 74,063 11,178,257 711,000 (711,000) - 1,242,350 1,165,552 2,407,902 66,456,038 39,337,935 105,793,973 2,661,179 702,833 3,364,012 69,117,217 40,040,768 109,157,985 70,359,567 $ 41,206,320 $ 111,565,887 $ and Changes in Net Assets Net (Expenses) Revenues ---PAGE BREAK--- CITY OF WOODBURN, OREGON BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2012 Capital Projects General Street SDC Other Governmental Funds ASSETS Cash and investments 3,025,340 $ 5,178,476 $ 6,580,537 $ Accounts and notes receivable 53,948 - 255,372 Property taxes receivable 638,116 - 94,085 Assessment liens receivable - - 769,083 Due from other funds 158,639 221,509 - Total Assets 3,876,043 $ 5,399,985 $ 7,699,077 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 252,684 $ 1,796 $ 105,027 $ Deferred revenue 576,316 - 854,071 Due to other funds 302,744 - 146,766 Total Liabilities 1,131,744 1,796 1,105,864 Fund Balance: Restricted for: Debt service - - 1,656,477 Construction - 5,398,189 2,166,372 Culture and recreation - - 193,424 Committed to: Public safety - - 49,653 Public works - - 1,770,149 Culture and recreation - - 1,022 Planning and building - - 901,748 Unassigned 2,744,299 - (145,632) Total Fund Balance 2,744,299 5,398,189 6,593,213 Total Liabilities and Fund Balance 3,876,043 $ 5,399,985 $ 7,699,077 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 12 - Total 14,784,353 $ 309,320 732,201 769,083 380,148 16,975,105 $ 359,507 $ 1,430,387 449,510 2,239,404 1,656,477 7,564,561 193,424 49,653 1,770,149 1,022 901,748 2,598,667 14,735,701 16,975,105 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 13 - CITY OF WOODBURN, OREGON RECONCILIATION OF BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 RECONCILIATION TO THE STATEMENT OF NET ASSETS Fund Balances 14,735,701 $ The Statement of Net Assets reports receivables at their net realizable value. However, receivables not available to pay for current period expenditures are deferred in governmental funds. 1,430,387 Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Assets at their net depreciable value. Cost 83,305,001 Accumulated depreciation (22,628,074) All liabilities are reported in the Statement of Net Assets. However, if they are not due and payable in the current period, they are not recorded in governmental funds. Compensated absenses payable (645,687) Accrued interest payable (22,547) Long-term debt (6,233,449) Internal service funds are proprietary-type funds and not reported with governmental funds. However, because internal service funds primarily benefit governmental activities, their assets, liabilities and net assets are reported along with governmental activities in the Statement of Net Assets. 418,235 Net Assets of Governmental Activities 70,359,567 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Capital Projects General Fund Street SDC Other Governmental Funds REVENUES Taxes and assessments 7,713,172 $ - $ 1,316,466 $ Licenses and permits 1,211,597 400,172 765,039 Charges for services 633,959 - 47,455 Intergovernmental 653,556 - 1,897,583 Fines and forfeitures 734,377 - - Miscellaneous 209,896 24,525 307,771 Total Revenues 11,156,557 424,697 4,334,314 EXPENDITURES Current General government 904,089 - 603,761 Public safety 6,348,096 - 78,539 Highways and streets - 34,278 1,093,161 Culture and recreation 3,184,910 - 633,544 Debt Service Principal - 24,228 483,557 Interest - 10,291 258,606 Capital outlay - 901,911 821,487 Total Expenditures 10,437,095 970,708 3,972,655 REVENUES OVER (UNDER) EXPENDITURES 719,462 (546,011) 361,659 OTHER FINANCING SOURCES (USES) Transfers in 70,698 71,887 887,089 Transfers out (492,000) - (493,738) Total Other Financing Sources (Uses) (421,302) 71,887 393,351 NET CHANGE IN FUND BALANCE 298,160 (474,124) 755,010 FUND BALANCE, beginning of year 2,446,139 5,872,313 5,838,203 FUND BALANCE, end of year 2,744,299 $ 5,398,189 $ 6,593,213 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 14 - Total 9,029,638 $ 2,376,808 681,414 2,551,139 734,377 542,192 15,915,568 1,507,850 6,426,635 1,127,439 3,818,454 507,785 268,897 1,723,398 15,380,458 535,110 1,029,674 (985,738) 43,936 579,046 14,156,655 14,735,701 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 15 - CITY OF WOODBURN, OREGON RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Net Change in Fund Balances - Total Governmental Funds 579,046 $ 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. (121,695) 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 (41,794) Accrued interest payable 1,588 Capital outlays are reported as expenditures in governmental funds. However, the Statement of Activities allocates the cost of capital outlay over their estimated useful lives as depreciation expense. Capital outlay expenditures 1,871,845 Depreciation (1,500,398) 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 Assets. Debt principal paid 507,785 Net income (loss) of internal service funds (526,021) Contribution of capital assets 471,994 Change in Net Assets of Governmental Activities 1,242,350 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF FUND NET ASSETS - PROPRIETARY FUNDS JUNE 30, 2012 Water Sewer WWTP Construction ASSETS Current Assets Cash and investments 512,124 $ 583,681 $ 17,436,689 $ Accounts receivable 125,828 179,964 186,184 Due from other funds - - 53,000 Total Current Assets 637,952 763,645 17,675,873 Noncurrent Assets Unamortized bond issue costs - 274,416 - Nondepreciable capital assets 158,444 1,889,085 2,847,345 Other capital assets, net of depreciation 10,635,078 49,309,833 - Total Noncurrent Assets 10,793,522 51,473,334 2,847,345 Total Assets 11,431,474 52,236,979 20,523,218 LIABILITIES Current Liabilities Accounts payable 22,130 46,936 101,185 Deposits payable 93,471 - - Accrued interest payable 308,329 178,465 - Due to other funds 74,919 75,090 - Current portion of long-term liabilities Long-term debt 621,879 1,865,000 - Total Current Liabilities 1,120,728 2,165,491 101,185 Noncurrent Liabilities Long-term debt 11,807,931 34,120,566 - Accrued compensated absences 39,521 60,009 - Total Noncurrent Liabilities 11,847,452 34,180,575 - Total Liabilities 12,968,180 36,346,066 101,185 NET ASSETS: Invested in capital assets, net of related debt (1,636,288) 29,071,328 2,847,345 Restricted for: Construction - - - Unrestricted 99,582 (13,180,415) 17,574,688 Total Net Assets (1,536,706) $ 15,890,913 $ 20,422,033 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 16 - WWD Construction Other Business- type Funds Total Total Internal Service Funds 4,439,418 $ 991,445 $ 23,963,357 $ 648,012 $ 70,973 - 562,949 4,000 221,509 - 274,509 - 4,731,900 991,445 24,800,815 652,012 - - 274,416 - 421,726 - 5,316,600 - 338,744 - 60,283,655 - 760,470 - 65,874,671 - 5,492,370 991,445 90,675,486 652,012 - 514 170,765 139,296 - - 93,471 - - - 486,794 - 53,000 221 203,230 1,917 - - 2,486,879 - 53,000 735 3,441,139 141,213 - - 45,928,497 - - - 99,530 92,564 - - 46,028,027 92,564 53,000 735 49,469,166 233,777 760,470 - 31,042,855 - - 935,770 935,770 - 4,678,900 54,940 9,227,695 418,235 5,439,370 $ 990,710 $ 41,206,320 $ 418,235 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 Water Sewer WWTP Construction OPERATING REVENUES Licenses and permits - $ - $ - $ Charges for services 2,191,563 3,067,533 3,101,696 Miscellaneous 464 4,403 64,472 Total Operating Revenues 2,192,027 3,071,936 3,166,168 OPERATING EXPENSES Personal services 1,195,583 1,343,002 - Materials and services 696,197 891,665 41,771 Depreciation 423,835 1,904,730 - Total Operating Expenses 2,315,615 4,139,397 41,771 OPERATING INCOME (LOSS) (123,588) (1,067,461) 3,124,397 NONOPERATING REVENUES (EXPENSES) Investment revenue 1,887 3,302 40,727 Interest expense - (8,670) (882,299) Bond premium amortization - 69,078 - Gain (loss) on sale of assets 5,892 - - Total Nonoperating Revenues (Expenses) 7,779 63,710 (841,572) NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS (115,809) (1,003,751) 2,282,825 Capital contributions - - - System development revenue - - - Transfers in 2,243,486 905,470 19,015,498 Transfers out (2,291,375) (19,597,958) (905,008) CHANGE IN NET ASSETS (163,698) (19,696,239) 20,393,315 NET ASSETS, Beginning of year, as originally reported 809,538 32,701,773 28,718 Prior period adjustment (2,182,546) 2,885,379 - NET ASSETS, Beginning of year, as restated (1,373,008) 35,587,152 28,718 NET ASSETS, End of year (1,536,706) $ 15,890,913 $ 20,422,033 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 17 - WWD Construction Other Enterprise Funds Totals Total Internal Service Funds - $ - $ - $ 68,277 $ 1,074,732 - 9,435,524 2,505,743 30,457 1,060 100,856 40,474 1,105,189 1,060 9,536,380 2,614,494 - 226,385 2,764,970 1,790,675 14,590 38,966 1,683,189 1,543,320 26,057 - 2,354,622 - 40,647 265,351 6,802,781 3,333,995 1,064,542 (264,291) 2,733,599 (719,501) 18,895 2,922 67,733 (1,587) (544,842) (1,730) (1,437,541) - - - 69,078 - - - 5,892 - (525,947) 1,192 (1,294,838) (1,587) 538,595 (263,099) 1,438,761 (721,088) 10,369 - 10,369 - - 427,448 427,448 - - 235,000 22,399,454 684,893 (278,360) (37,753) (23,110,454) (489,826) 270,604 361,596 1,165,578 (526,021) 5,168,766 629,114 39,337,909 944,256 - - 702,833 - 5,168,766 629,114 40,040,742 944,256 5,439,370 $ 990,710 $ 41,206,320 $ 418,235 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 Water Sewer CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 2,207,278 $ 3,086,085 $ Paid to suppliers (1,205,573) (919,006) Paid to employees (695,910) (1,342,692) Net Cash Provided by (Used in) Operating Activities 305,795 824,387 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Due to (from) other funds (11,231) (10,459) Transfers in 2,229,039 21,480,868 Transfers out (336,000) (37,874,644) Net Cash Provided by (Used in) Non-Capital Financing Activities 1,881,808 (16,404,235) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (1,502,307) (690,323) Proceeds from disposal of capital assets 5,892 - Principal paid on loans and bonds payable (623,499) (20,531,209) Proceeds from issuance of debt - 37,179,644 Payment of bond issue costs - (281,452) Contribution of capital - - System development revenue - - Interest paid - (1,634) Net Cash Provided by (Used in) Capital and Related Financing Activities (2,119,914) 15,675,026 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 1,887 3,302 Increase (Decrease) in Cash and Investments 69,576 98,480 CASH AND INVESTMENTS, Beginning of year 442,548 485,201 CASH AND INVESTMENTS, End of year 512,124 $ 583,681 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 18 - WWTP Water Well Nonmajor Total Internal Construction Construction Funds Totals Service Funds 3,162,048 $ 1,618,621 $ - $ 10,074,032 $ 2,614,494 $ (145,824) (124,700) (39,232) (2,434,335) (1,425,330) - - (226,385) (2,264,987) (1,845,658) 3,016,224 1,493,921 (265,617) 5,374,710 (656,494) (482,000) 516,416 514 13,240 4,103 16,648,435 - 235,000 40,593,342 684,893 (905,008) (709,285) (37,753) (39,862,690) (18,601) 15,261,427 (192,869) 197,761 743,892 670,395 (480,282) (355,602) - (3,028,514) - - - - 5,892 - - - - (21,154,708) - - - - 37,179,644 - - - - (281,452) - - 10,369 - 10,369 - - - 427,448 427,448 - (882,299) (544,842) (1,730) (1,430,505) - (1,362,581) (890,075) 425,718 11,728,174 - 40,727 18,895 2,922 67,733 (1,586) 16,955,797 429,872 360,784 17,914,509 12,315 480,892 4,009,546 630,661 6,048,848 635,697 17,436,689 $ 4,439,418 $ 991,445 $ 23,963,357 $ 648,012 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON STATEMENT OF CASH FLOWS (Continued) YEAR ENDED JUNE 30, 2012 Water Sewer RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) (123,588) $ (1,067,461) $ Depreciation 423,835 1,904,730 Change in assets and liabilities: Accounts receivable 9,338 14,149 Accounts payable and accrued liabilities (9,990) (27,341) Customer deposits 5,913 - Compensated absences payable 287 310 Net Cash Provided by (Used in) Operating Activities 305,795 $ 824,387 $ Noncash Transactions Transfer of capital assets - $ - $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 19 - WWTP Water Well Nonmajor Total Internal Construction Construction Funds Totals Service Funds 3,124,397 $ 1,064,542 $ (264,291) $ 2,733,599 $ (719,501) $ - 26,057 - 2,354,622 - (4,120) 513,432 - 532,799 - (104,053) (110,110) (1,326) (252,820) 117,990 - - - 5,913 - - - - 597 (54,983) 3,016,224 $ 1,493,921 $ (265,617) $ 5,374,710 $ (656,494) $ - $ - $ - $ - $ (460,318) $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 20 - CITY OF WOODBURN, OREGON STATEMENT OF FIDUCIARY NET ASSETS JUNE 30, 2012 Pension Trust ASSETS Cash and investments 473,593 $ LIABILITIES Due to others - NET ASSETS Held in trust for benefits and other purposes 473,593 $ ---PAGE BREAK--- The accompanying notes are an integral part of the financial statements. - 21 - CITY OF WOODBURN, OREGON STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS YEAR ENDED JUNE 30, 2012 Pension Trust ADDITIONS Contributions 1,548 $ Earnings 12,228 DEDUCTIONS - CHANGE IN NET ASSETS 13,776 NET ASSETS, Beginning of year 459,817 NET ASSETS, end of year 473,593 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- - 22 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2012 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, 2012. There are certain governmental agencies and various service districts which provide services within the City. These agencies have independently elected governing boards and the City is not financially accountable for these organizations. Therefore, financial information for these agencies is not included in the accompanying basic financial statements. As defined by accounting principles generally accepted in the United States of America, the financial reporting entity consists of the primary government, as well as its component units, which are legally separate organizations for which the elected officials of the primary government are financially accountable. Financial accountability is defined as appointment of a voting majority of the component unit's board, and either a) the ability to impose will by the primary government, or b) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government. The City of Woodburn's financial statements include the Woodburn Urban Renewal Agency as a blended component unit. The City Council and Board of Directors of Woodburn Urban Renewal Agency are composed of the same individuals. The separately issued financial statements of the Woodburn Urban Renewal Agency may be obtained from the City, 270 Montgomery Street, Woodburn, Oregon 97071. Basic Financial Statements Basic financial statements are presented at both the government-wide and fund financial level. Both levels of statements categorize primary activities as either governmental or business-type. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Government-wide financial statements display information about the reporting government as a whole. For the most part, the effect of interfund activity has been removed from these statements. These statements focus on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the fiscal period. These aggregated statements consist of the Statement of Net Assets and the Statement of Activities. ---PAGE BREAK--- - 23 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued) The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund financial statements display information at the individual fund level. Each fund is considered to be a separate accounting entity. Funds are classified and summarized as governmental, enterprise or fiduciary. Currently, the City has general, special revenue, internal service, capital projects, debt service and enterprise type funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are consolidated into a single column within each fund type in the financial section of the basic financial statements and are detailed in the other supplementary information. The government-wide and proprietary fund financial statements are accounted for using an economic resources measurement focus, whereby all assets and liabilities are included in the statement of net assets and the statement of fund net assets. The increases and decreases in those net assets are presented in the government-wide statement of activities and in the proprietary fund statement of revenues, expenses and changes in fund net assets. 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. The City's government-wide and proprietary fund accounting and financial reporting practices are based on all applicable GASB pronouncements as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedures. The City has elected not to apply FASB guidance issued subsequent to November 30, 1989 to business-type activities and to enterprise funds, unless specifically adopted by the GASB. 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 assets, 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. ---PAGE BREAK--- - 24 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Balance In the fund financial statements, the fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Although not a major impact on the financial statements, Governmental Fund type fund balances are now reported in the following classifications. Fund balance is reported as nonspendable when the resources cannot be spent because they are either in a nonspendable form or legally or contractually required to be maintained intact. Resources in nonspendable form include inventories, prepaids and deposits, and assets held for resale. Fund balance is reported as restricted when the constraints placed on the use of resources are either: externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. Fund balance is reported as committed when the City Council takes formal action that places specific constraints on how the resources may be used. The City Council can modify or rescind the commitment at any time through taking a similar formal action. Resources that are constrained by the City’s intent to use them for a specific purpose, but are neither restricted nor committed, are reported as assigned fund balance. Intent is expressed when the City Council approves which resources should be “reserved” during the adoption of the annual budget. The City’s Finance Director uses that information to determine whether those resources should be classified as assigned or unassigned for presentation in the City’s Annual Financial Report. Unassigned fund balance is the residual classification for the General Fund. This classification represents fund balance that has not been restricted, committed, or assigned within the General Fund. This classification is also used to report any negative fund balance amounts in other governmental funds. The City Council has approved a policy to maintain an ending fund balance in the general fund, in order to provide stable services and employment to offset cyclical variations in revenues and expenditures. The targeted floor for the ending balance will be at ten percent of annual operating revenue, as shown as a minimum fund balance in the General Fund. The City Council is the highest level decision making authority and may take formal action by vote or resolution to establish, modify, or rescind a fund balance commitment. Definitions of Governmental Fund Types The General Fund is used to account for all financial resources not accounted for in another fund. Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The term “proceeds of specific revenues sources” means that the revenue sources for the fund must be from restricted or committed sources, specifically that a substantial portion of the revenue must be from these sources and be expended in accordance with those requirements. Capital Projects Funds are utilized to account for financial resources to be used for the acquisition or construction of capital equipment and facilities. ---PAGE BREAK--- - 25 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Definitions of Governmental Fund Types (Continued) Debt Service Funds are utilized to account for the accumulation of resources for, and the payment of, long-term debt principal and interest. Special Revenue Funds whose primary source of funding is transfers from the General Fund are reported as part of the General Fund. Therefore, in the Governmental Funds Statement of Assets and Liabilities and the Statement of Receipts, Disbursements and Changes in Fund Balances, the General Reserve Fund has been combined with the General Fund. Governmental Fund Financial Statements Governmental funds use the modified accrual basis of accounting whereby revenues are recorded only when susceptible to accrual (both measurable and available). “Measurable” means that the amount of the transaction can be determined. “Available” is defined as being collectible within the current period or soon enough thereafter (30 days) to be used to liquidate liabilities of the current period. Expenditures other than interest on noncurrent obligations, are recorded when the fund liability is incurred. Real and personal property taxes are levied as of July 1 for each fiscal year on values assessed as of January 1. Property taxes are an enforceable lien on both real and personal property as of July 1 and are due and payable in three installments on November 15, February 15 and May 15. All property taxes are billed and collected by Marion County and remitted to the City. In the governmental fund financial statements, property taxes are reflected as revenues in the fiscal period for which they were levied, provided they are due, or past due and receivable within the current period, and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period (30 days). Otherwise, they are reported as deferred revenues. Intergovernmental revenues are recognized as revenues when all eligibility requirements are met. There are, however, essentially two types of intergovernmental revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the City; therefore, all eligibility requirements are determined to be met when the underlying expenditures are recorded. In the other, monies are virtually unrestricted as to the purpose of the expenditure and are usually revocable only for failure to comply with prescribed requirements; therefore, all eligibility requirements are determined to be met at the time of receipt, or earlier, if the susceptible accrual criteria are met. Licenses and permits, charges for services, fines and forfeits and miscellaneous revenues (except investment earnings) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. Special assessments receivable and repayment of revolving loans are offset by deferred revenues. When both restricted and unrestricted resources are available for use, it is the City's practice to use restricted resources first, then unrestricted resources as they are needed. The reporting model sets forth minimum criteria (percentage of the assets, liabilities, receipts or disbursements of either fund category or the government and enterprise combined) for the determination of major funds. Nonmajor funds are combined in a column in the fund financial statements and detailed in the combining section. ---PAGE BREAK--- - 26 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Fund Financial Statements (Continued) The City reports the following major governmental funds: General Fund Street SDC Fund The City reports the following major proprietary funds: Water Fund Sewer Fund WWTP Construction Fund Water Well Construction Fund Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reporting amounts of certain assets, liabilities, revenues and expenses as of and for the year ended June 30, 2012. Actual results may differ from such estimates. Cash and Investments Investments, included in cash and investments, are carried at cost which approximates fair value. For purposes of the statement of cash flows, the proprietary funds consider cash and cash equivalents to include the cash and investment common pool. These amounts have the general characteristics of demand deposit accounts in that the proprietary funds may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. Receivables and Deferred Revenues Receivables for state, county and local shared revenues, included in accounts receivable, are recorded as revenue in the governmental funds as earned. Receivables of the enterprise funds are recorded as revenue as earned. Property taxes receivable for the governmental fund types, which have been collected within sixty days subsequent to year end, are considered measurable and available and are recognized as revenues. All other property taxes are offset by deferred property tax revenues and, accordingly, have not been recorded as revenue. Property taxes receivable by the City represent the City's allocated share of delinquent property taxes and other amounts to be collected from property owners within Marion County, Oregon. Assessment liens in the governmental fund types are recognized as receivables at the time property owners are assessed for property improvements. All assessments receivable are offset by a deferred revenue account and, accordingly, have not been recorded as revenue. ---PAGE BREAK--- - 27 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Inventory Inventory in the proprietary funds is stated at cost (first-in, first-out basis) and is charged to expense as used. Capital Assets Capital assets are stated at cost or estimated historical cost. Donated assets are recorded at fair market value at date of donation. Estimated fair market value of donated assets is determined based on engineering estimates of current cost or price indexed cost. Capital assets include land, right-of-way (included with land), buildings, improvements, equipment, infrastructure and other tangible and intangible assets costing over $5,000 used in operations that have initial useful lives extending beyond a single reporting period. Infrastructure are those capital assets that are stationary in nature and can be preserved for a significantly greater number of years than most other capital assets. Infrastructure reported in governmental activities consists of roads, bridges, sidewalks and traffic and lighting systems. Infrastructure reported in business-type activities consists of water and wastewater collection systems. All capital assets, except for infrastructure in governmental activities prior to July 1, 1980, have been capitalized in the government-wide and proprietary fund financial statements. In accordance with the current financial resources measurement focus, capital assets are not capitalized in the governmental fund financial statements. All purchased capital assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Historical cost is measured by the cash or cash equivalent price of obtaining an asset, including ancillary charges necessary to place the asset into its intended location and condition for use. Donated capital assets are reported at their estimated fair value at the time of acquisition plus ancillary charges, if any. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Amounts expended for maintenance and repairs are charged to expenditures/expenses in the appropriate funds as incurred and are not capitalized. Capital assets are depreciated unless they are inexhaustible in nature land and right-of-ways). Depreciation is an accounting process to allocate the cost of capital assets to expense in a systematic and rational manner to those periods expected to benefit from the use of capital assets. Depreciation is not intended to represent an estimate in the decline of fair market value, nor are capital assets, net of accumulated depreciation, intended to represent an estimate of the current condition of the assets, or the maintenance requirements needed to maintain the assets at their current level of condition. Depreciation is computed over the estimated useful lives of the capital assets. All estimates of useful lives are based on actual experience by City departments with identical or similar capital assets. Depreciation is calculated on the straight-line basis, except for infrastructure and improvements other than buildings reported in the governmental activities column of the government-wide financial statements, which are calculated using a composite depreciation method. The estimated useful lives of the various categories of assets are as follows: Buildings and improvements 40 years Water and Sewer Systems 20 - 50 years Infrastructure 20 - 50 years Equipment 10 - 20 years Upon disposal of capital assets, cost and accumulated depreciation are removed from the accounts and, if appropriate, a gain or loss on the disposal is recognized. ---PAGE BREAK--- - 28 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Long-Term Debt Long-term debt directly related and expected to be paid from the enterprise funds is recorded in these funds. All other unmatured long-term debt is recorded on the statement of net assets. Repayment of general bonded debt will be made from debt service funds. Payment of vacation liabilities will be made primarily from the General Fund, Street Development Fund, Water Fund and Sewer Fund. Accrued Vacation Pay Accumulated vested vacation pay is accrued in the enterprise funds as it is earned by employees. In governmental fund types, the amounts, if any, expected to be liquidated with expendable available resources are accrued as liabilities of the funds and the amount payable from future resources is recorded on the statement of net assets. The accrued payables in the Statement of Net Assets is recorded as long-term in that the amount will not materially change. Sick pay, which does not vest, is recorded in all funds when leave is taken. Budget and Budgetary Accounting A budget is prepared for each fund in accordance with the modified accrual basis of accounting for all funds. Appropriations are made at the department level for the General Fund and the object level for all other funds. Expenditures may not legally exceed appropriations. Appropriations lapse at the end of each fiscal year. Budget amounts include original approved amounts and all subsequent appropriation transfers approved by the City Council. After budget approval, the City Council may approve supplemental appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. Management may not amend the budget. A supplemental budget requires hearings before the public, publications in newspapers and approval by the City Council. ORGANIZATION AND OPERATION The City's financial operations are accounted for in the following funds and account groups: Governmental Fund Types General Fund The General Fund accounts for activities of the City which are not accounted for in any other fund. Principal sources of revenue are property taxes, franchise fees and state and county shared revenues. Primary expenditures are for police and fire protection, recreation and general government. Special Revenue Funds Building Fund - This fund accounts for building permit revenue and associated operations. Search and Seizure Fund - This fund accounts for the City’s allotment of Federal Equitable Sharing grant used for drug and gang enforcement activities. ---PAGE BREAK--- - 29 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 ORGANIZATION AND OPERATION (Continued) Governmental Fund Types (Continued) Special Revenue Funds (Continued) Weed and Seed Fund - This fund is used to account for the City’s Weed and Seed grant, used for gang and mentoring programs. This fund was closed as of June 30, 2012. Revenue Sharing Fund – This fund accounts for State Revenue Sharing funds. The funds are used for the City’s street lighting program and to provide minor street maintenance. This fund was closed as of June 30, 2012. Housing Rehabilitation Fund - This fund accounts for the City’s CDBG grant program and provides low income housing and small business loans. RSVP Fund - This fund accounts for the federal grant for the Retired Seniors Volunteer Program. Cable Franchise Fund - This fund is used to account for the City’s of local cable franchise fees to the local cable access program (WCAT). Streets 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. Local Gas Tax Fund - This fund accounts for the City’s one cent per gallon local gas tax. The money is used for capital improvement projects on local streets. General Reserve Fund – This fund is a reserve for unforeseen circumstances or future needs. Transit Fund – This fund accounts for amounts held to be used for weekday transportation services. Library Endowment Fund - This fund accounts for funds held to be used for library improvement projects. Museum Endowment Fund - This fund accounts for amounts held for museum activities. Lavelle Black Trust Fund – This fund accounts for the donations received to continue the police dog program. Capital Projects Funds Economic Development Fund – The primary purpose of this fund is to collect and distribute lease payments for leased property from the railroad. Police Construction Fund – Proceeds from the 2005 GO bonds were used to construct the City’s police facility. The project was completed in fiscal year 2011-12. General Construction Fund - This fund is used to account for transfers from general services funds used for general services construction projects. ---PAGE BREAK--- - 30 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 ORGANIZATION AND OPERATION (Continued) Governmental Fund Types (Continued) Capital Projects Funds (Continued) Special Assessment Fund - This fund accounts for the repayment of local improvement district (LID) assessments. The money is used for construction of LID projects. Street/Storm Capital Improvement Fund - This fund accounts for transfers from the Storm and Street funds. The money is used for street and storm related capital projects. Parks SDC Fund - This fund is used to account for the collection and spending of park SDC’s. Street SDC Fund - This fund accounts for the collection and spending of street SDC’s. Storm SDC Fund - This fund accounts for the collection and spending of storm SDC’s. PW Facility Construction Fund - This fund is used to account for lease payments on public works leased properties. This fund was closed as of June 30, 2012. Equipment Replacement Fund - This fund accounts for transfers from other funds set aside for future equipment purchases. Debt Service Funds GO Debt Fund - This fund accounts for debt service on the City’s 2005 GO bond. Property taxes are the major source of revenue. Bancroft Bond Fund – The remaining Bancroft Bond certificates are held in this fund. This fund was closed as of June 30, 2012. Urban Renewal Fund – This fund accounts for debt service on the URA loan. Property taxes are the primary source of revenue. Proprietary Fund Types Enterprise Funds The City has eight enterprise funds. Three funds are related to water, and five are related to sewer. The specific funds and their purposes are as follows. Sewer Capital Fund - This fund accounts for capital improvements to the City’s sewer system. This fund was closed as of June 30, 2012. WWTP Construction Fund - This fund was used to account for the City’s sewer treatment plant upgrade. The major source of revenue is debt proceeds. ---PAGE BREAK--- - 31 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 ORGANIZATION AND OPERATION (Continued) Proprietary Fund Types (Continued) Enterprise Funds (Continued) WWD Construction Fund - This fund accounts for water system capital improvement projects and the retirement of associated debt. Water Fund - This fund accounts for the City’s water system operation. Customer charges are the primary source of revenue. Sewer Fund - This fund accounts for the operation of the City's sewer system. Customer charges are the primary revenue source. Water SDC Fund - This fund accounts for the collection and spending of water SDC’s. Sewer SDC Fund - This fund accounts for the collection and spending of water SDC’s. Surfacewater Fund - This fund was used to account for the City’s storm water program. Transfers from the Sewer fund are the primary source of revenue. Internal Service Funds The City has five internal service funds which provide services to other City departments. Internal charges are the primary revenue source for all funds. Expenditures are for the purposes as described below. Information Services Fund - This fund accounts for the maintenance and replacement of the City’s network and technology services. Central Stores Fund - This fund accounts for interdepartmental copier leases and office supplies expenditures. This fund was closed as of June 30, 2012. Insurance Fund – This fund accounts for the City’s insurance coverage. Technical & Environmental Services Fund - This fund accounts for administrative, engineering and fleet services provided to the City’s enterprise operations. Building Maintenance Fund – This fund accounts for building maintenance and custodial services provided to City departments. Fiduciary Fund The City has one fiduciary fund. The City's pension trust fund holds assets to provide retirement benefits to certain City employees. ---PAGE BREAK--- - 32 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 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 Assets as part of “cash and investments.” Cash Deposits with financial institutions $ 883,753 $ 883,753 Cash on hand 2,330 2,330 Investments Local Government Investment Pool 38,509,639 38,509,639 Assets held for pension benefits 473,593 473,593 $ 39,869,315 $ 39,395,722 Cash is reported in the financial statements as follows: Governmental funds $ 14,784,353 Internal Service funds (included in governmental activities) 648,012 Enterprise funds 23,963,357 Fiduciary funds 473,593 $ 39,869,315 Carrying Fair Value Value Deposits The book balance of the City’s bank deposits (checking accounts) was $883,753 and the bank balance was $1,252,331 at year end. The difference is due to transactions in process. Bank deposits are secured to legal limits by federal deposit insurance. The remaining amount is secured in accordance with ORS 295 under a collateral program administered by the Oregon State Treasurer. Investments The State Treasurer of the State of Oregon maintains the Oregon Short-term Fund, of which the Local Government Investment Pool is part. Participation by local governments is voluntary. The State of Oregon investment policies are governed by statute and the Oregon Investment Council. In accordance with Oregon Statutes, the investment funds are invested as a prudent investor would do, exercising reasonable care, skill and caution. The Oregon Short-term Fund is the LGIP for local governments and was established by the State Treasurer. It was created to meet the financial and administrative responsibilities of federal arbitrage regulations. The investments are regulated by the Oregon Short Term Fund Board and approved by the Oregon Investment Council (ORS 294.805 to 294.895). At June 30, 2012, the fair value of the position in the Oregon State Treasurer’s Short-term Investment Pool was approximately equal to the value of the pool shares. The investment in the Oregon Short-term Fund is not subject to classification. Separate financial statements for the Oregon Short-term Fund are available from the Oregon State Treasurer. ---PAGE BREAK--- - 33 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 CASH AND INVESTMENTS (Continued) Interest Rate Risk In accordance with its investment policy, the District manages its exposure to declines in fair value of its investments by limiting the weighted average maturity of its investments. Custodial Credit Risk - Deposits This is the risk that in the event of a bank failure, the City’s deposits may not be returned. The Federal Depository Insurance Corporation (FDIC) provides unlimited insurance for the City’s deposits with financial institutions for the aggregate of all non-interest bearing accounts and up to $250,000 for the aggregate of all interest bearing accounts at each institution. Deposits in excess of FDIC coverage are with institutions participating in the Oregon Public Funds Collateralization Program (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, 2012, $1,002,331 of the City’s bank balances were exposed to custodial credit risk as part of the Public Funds Collateralization Program. Custodial Risk - Investments For an investment, this is the risk that, in the event of a failure of the counterparty, the City will not be able to recover the value of its investments or collateralized securities that are in the possession of an outside party. The City's investment policy limits the types of investments that may be held and does not allow securities to be held by the counterparty. The LGIP is administered by the Oregon State Treasury with the advice of other state agencies and is not registered with the U.S. Securities and Exchange Council. The LGIP is an open-ended no-load diversified portfolio offered to any agency, political subdivision, or public corporation of the state that by law is made the custodian of, or has control of any fund. The LGIP is commingled with the State's short-term funds. In seeking to best serve local governments of Oregon, the Oregon Legislature established the Oregon Short Term Fund Board, which has established diversification percentages and specifies the types and maturities of the investments. The purpose of the Board is to advise the Oregon State Treasury in the management and investment of the LGIP. These investments within the LGIP must be invested and managed as a prudent investor would, exercising reasonable care, skill and caution. Professional standards indicate that the investments in external investment pools are not subject to custodial risk because they are not evidenced by securities that exist in physical or book entry form. Nevertheless, management does not believe that there is any substantial custodial risk related to investments in the LGIP. ---PAGE BREAK--- - 34 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 CAPITAL ASSETS The summary of capital assets for the business-type activities for the year ended June 30, 2012 is as follows: Balances Balances July 1, June 30, 2011* Additions Retirements 2012 Nondepreciable assets Land (nondepreciable) 1,783,816 $ - $ - $ 1,783,816 $ Construction in progress 7,162,827 1,493,712 (5,123,754) 3,532,785 Subtotal, nondepreciable assets 8,946,643 1,493,712 (5,123,754) 5,316,601 Depreciable assets Buildings 62,323,573 16,435 - 62,340,008 Water and sewer systems 23,107,823 5,207,524 - 28,315,347 Equipment 2,729,540 22,686 (852,353) 1,899,873 Subtotal, depreciable assets 88,160,936 5,246,645 (852,353) 92,555,228 Accumulated depreciation Buildings and improvements (22,474,253) (1,687,963) 2,977,535 (21,184,681) Water and sewer systems (7,758,407) (566,304) (1,503,181) (9,827,892) Equipment (1,239,478) (100,355) 80,832 (1,259,001) Total accumulated depreciation (31,472,138) (2,354,622) 1,555,186 (32,271,574) Total depreciable assets, net 56,688,798 2,892,023 702,833 60,283,654 Net capital assets 65,635,441 $ 4,385,735 $ (4,420,921) $ 65,600,255 $ * As adjusted Depreciation expense was allocated as follows: Water 391,207 $ Wastewater 1,963,415 2,354,622 $ ---PAGE BREAK--- - 35 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 CAPITAL ASSETS (Continued) The changes in the capital assets for governmental activities for the year ended June 30, 2012 are as follows: Balances Balances July 1, June 30, 2011* Additions Retirements 2012 Nondepreciable assets Land (nondepreciable) 22,567,381 $ - $ - $ 22,567,381 $ Construction in progress 9,504,993 646,451 (8,242,088) 1,909,356 Subtotal, nondepreciable assets 32,072,374 646,451 (8,242,088) 24,476,737 Depreciable assets Buildings 8,611,272 7,285,859 - 15,897,131 Equipment 5,869,352 180,791 (360,103) 5,690,040 Infrastructure 35,228,583 2,012,510 - 37,241,093 Subtotal, depreciable assets 49,709,207 9,479,160 (360,103) 58,828,264 Accumulated depreciation Buildings (3,458,993) (447,806) (897,879) (4,804,678) Equipment (4,109,770) (307,770) 203,968 (4,213,572) Infrastructure (16,580,194) (744,823) 3,715,193 (13,609,824) Total accumulated depreciation (24,148,957) (1,500,399) 3,021,282 (22,628,074) Total depreciable assets, net 25,560,250 7,978,761 2,661,179 36,200,190 Net capital assets 57,632,624 $ 8,625,212 $ (5,580,909) $ 60,676,927 $ * As adjusted Depreciation expense was allocated as follows: General government 169,515 $ Public safety 202,366 Highways and streets 859,349 Culture and recreation 149,058 Internal service funds 120,111 1,500,399 $ ---PAGE BREAK--- - 36 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 LONG-TERM DEBT Long-term debt transactions for the year were as follows: Outstanding Outstanding Due July 1, Redeemed June 30, Within 2011 Issued During Year 2012 One Year Governmental Activities: Series 2005 due in annual installments with principal and interest varying annually 5,655,000 $ - $ (290,000) $ 5,365,000 $ 300,000 $ 1999 Oregon EDD Loan due in annual installments of $38,319 with interest at 5.01%. 204,441 - (24,228) 180,213 24,440 2005 URA Loan due in quarterly installments of $56,933 with interest at 4.22%. 881,793 - (193,557) 688,236 201,855 6,741,234 - (507,785) 6,233,449 526,295 Accrued compensated absences 751,440 (47,011) 704,429 - 7,492,674 $ - $ (554,796) $ 6,937,878 $ 526,295 $ ---PAGE BREAK--- - 37 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 LONG-TERM DEBT (Continued) Outstanding Matured/ Outstanding Due July 1, Redeemed June 30, Within 2011 Issued During Year 2012 One Year Business-type Activities: Series 2003 Water bond paid over 25 years; interest at various rates 6,778,648 $ - $ (259,485) $ 6,519,163 $ 271,065 $ 1992 Oregon EDD due in annual installments of $29,102 including interest at 6.32% 27,372 - (27,372) - - 2005 Oregon EDD due in annual installments including interest at 4.21% 3,123,640 - (168,321) 2,955,319 175,407 2005 SDWR due in annual installments including interest at 4.21% 3,123,649 - (168,321) 2,955,328 175,407 1999 Oregon EDD due in annual in- stallments including interest at 4.74% 241,585 - (241,585) - - 1999 Oregon EDD due in annual installments of $147,792 including interest at 3.93% 1,904,005 - (1,904,005) - - 2001 Oregon EDD due in annual installments of $735,150 including interest at 3.87% 15,707,096 - (15,707,096) - - 2007 Oregon DEQ with principal and interest at 1.05% due annually upon completion of the project 614,287 - (614,287) - - 2007 Oregon DEQ with principal and interest at 1.53% due annually upon completion of the project 939,236 - (939,236) - - 2011 Sewer Revenue Bonds paid over 20 years; interest at various rates - 34,416,557 (1,125,000) 33,291,557 1,865,000 32,459,518 34,416,557 (21,154,708) 45,721,367 2,486,879 2011 Sewer Revenue Bond premium - 2,763,086 (69,077) 2,694,009 - Accrued compensated absences 98,932 95,382 - 194,314 - 32,558,450 $ 37,275,025 $ (21,223,785) $ 48,609,690 $ 2,486,879 $ ---PAGE BREAK--- - 38 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 LONG-TERM DEBT (Continued) Future maturities of long-term debt are as follows: Governmental Activities Ending Principal Interest Total 2013 526,295 $ 249,237 $ 775,532 $ 2014 560,172 228,861 789,033 2015 584,429 206,832 791,261 2016 436,479 185,340 621,819 2017 400,399 169,937 570,336 2018-22 2,165,675 599,944 2,765,619 2023-25 1,560,000 133,959 1,693,959 6,233,449 $ 1,774,110 $ 8,007,559 $ Fiscal Year June 30, Business-type Activities Ending Principal Interest Total 2013 2,486,879 $ 1,621,569 $ 4,108,448 $ 2014 2,913,471 1,555,868 4,469,339 2015 3,425,522 1,457,889 4,883,411 2016 3,177,229 1,358,931 4,536,160 2017 3,330,966 1,358,943 4,689,909 2018-22 22,949,575 5,318,594 28,268,169 2023-27 6,140,315 1,913,216 8,053,531 2028-31 1,297,409 98,825 1,396,234 45,721,366 $ 14,683,835 $ 60,405,201 $ June 30, Fiscal Year ---PAGE BREAK--- - 39 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 DEFINED BENEFIT PENSION PLAN – THE RETIRMENT PLAN FOR EMPLOYEES OF CITY OF WOODBURN, OREGON Plan Description The City sponsors a single-employer defined benefit pension plan that covers nonexecutive employees who have completed six months of employment with the City and executive employees, except the city administrator, who elect coverage under this plan. It provides retirement and disability benefits, cost of living adjustments and death benefits to members and beneficiaries. The City Council has the authority to amend the benefit provisions of the plan. On November 5, 1998, the City decided to integrate its retirement plan into the Oregon Public Employees Retirement System (PERS) pursuant to ORS 238.680. The City ceased contributions to its retirement plan in December 1998, except for one employee who continued under the plan until August 2000. In December 1998, the City transferred $6,738,120 to PERS under the integration agreement with PERS. The remaining assets of the retirement plan are to provide retirement benefits to employees who have already retired or elected to remain in the plan. Membership of the plan consisted of eight inactive members at July 1, 2007, the date of the latest actuarial valuation available as of the date of this report. Funding Status and Progress The pension benefit obligation (PBO), which is the actuarial present value of credited projected benefits, is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step-rate benefits estimated to be payable in the future as a result of employee service to date. The measure is intended to help assess the funding status of the plan, to assess progress made in accumulating sufficient assets to pay benefits when due, and to make comparisons among employers. The latest actuarial valuation was performed as of July 1, 2011. Significant actuarial assumptions used to compute the PBO were as follows: Investment earnings 5.5% (net of all plan expenses) Salary increases as per contract Cost-of-living increases 3.0% PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) Plan Description The City contributes to two pension plans administered by the Oregon Public Employees Retirement System (PERS). The Oregon Public Employees Retirement Fund (OPERF) applies to the City’s contribution for qualifying employees who were hired before August 29, 2003, and is a cost-sharing multiple-employer defined benefit pension plan. The City participates in the state and local government rate pool The Oregon Public Service Retirement Plan (OPSRP) is a hybrid successor plan to the OPERF and consists of two programs: The Pension Program, the defined benefit portion of the plan, applies to qualifying City employees hired after August 29, 2003, and to inactive employees who return to employment following a six-month or greater break in service. Benefits are calculated by a formula for members who attain normal retirement age. The formula takes into account final average salary and years of service. Beginning January 1, 2004, all PERS member contributions ---PAGE BREAK--- - 40 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) (Continued) Plan Description (Continued) go into the Individual Account Program (IAP), the defined contribution portion of the plan. PERS members retain their existing PERS accounts, but any future member contributions are deposited into the member’s IAP, not the member’s PERS account. Both PERS plans provide retirement and disability benefits, post employment healthcare benefits, annual cost-of- living adjustments, and death benefits to plan members and beneficiaries. PERS is administered under Oregon Revised Statute Chapter 238, which establishes the Public Employees Retirement Board as the governing body of PERS. PERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to PERS, PO Box 23700, Tigard, OR, 97281- 3700 or by calling [PHONE REDACTED]. Funding Policy Members of PERS are required to contribute 6.00% of their salary covered under the plan, which is invested in the OPSRP Individual Account Program. The City is required by ORS 238.225 to contribute at an actuarially determined rate for the qualifying employees under the OPERF plan, and a general service rate and a police/fire rate for the qualifying employees under the OPSRP plan. The OPERF and the OPSRP rates in effect for the year ended June 30, 2012 were 13.23%, 9.35% and 12.06% respectively. The contribution requirements for plan members are established by ORS Chapter 238 and may be amended by an act of the Oregon Legislature. Annual Pension Cost The City’s contributions to PERS for the years ending June 30, 2010, 2011, and 2012 were $1,170,971 $1,145,109 and $1,515,526 respectively, which equaled the required contribution for the year. DEFINED CONTRIBUTION PENSION PLAN The City sponsors a defined contribution pension plan administered by ICMA Retirement Corp. to provide retirement benefits for the City Attorney. The plan provisions and contribution requirements are established and amended by the City Council. The City has established a contribution rate of 7 percent of covered salary. The City contributed $8,424 to the plan for the year ended June 30, 2012. ---PAGE BREAK--- - 41 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 TRANSFERS Transfers In Transfers Out General Fund 70,698 $ 417,856 $ General Reserve - 74,143 Transit 151,000 - Weed and Seed - 13,865 Revenue Sharing - 161,353 Housing Rehab 6,628 - Street 347,678 225,000 Local Gas Tax 71,277 - Lavelle Black Trust 15,000 - Economic Development - 71,887 Police Construction - 2,642 General Construction 85,506 - Street SDC 71,887 - Bancroft Bond - 6,628 PW Facility Construction - 12,363 Equipment Replacement 210,000 - Sewer Capital Improvement - 8,724 Water 85,000 336,000 Sewer 8,724 695,000 Storm 235,000 - Information Services 12,830 - Central Stores 5,063 12,830 Technical & Environmental Services 667,000 5,000 2,043,291 $ 2,043,291 $ Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. INTERFUND LOANS As of June 30, 2012, the WWD Construction Fund owed the WWTP Construction Fund $53,000. The General Fund owed $295,536, and the Water and Sewer Funds each owed $73,741 for a combined total of $443,018, which $221,509 was owed to the Street SDC Fund and $221,509 to the WWD Construction Fund. No specific repayment schedule has been determined. ---PAGE BREAK--- - 42 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 BEGINNING BALANCE ADJUSTMENTS During the current year, the City completed a thorough inventory of capital assets. In doing so, the City discovered that certain assets which did not meet the capitalization threshold of $5,000 had been capitalized, and that in certain instances depreciation had been incorrectly calculated. In order to properly reflect the changes required by these corrections, the beginning net assets of the governmental and business activities have been restated. EXPENDITURES IN EXCESS OF APPROPRIATIONS The following funds had expenditures in excess of appropriations: Budget Actual Variance General Fund Human Resources 49,668 $ 69,969 $ (20,301) $ General Reserve Transfers out 73,000 74,143 (1,143) Building Materials and services 88,510 105,354 (16,844) Weed and Seed Transfers out - 13,865 (13,865) Revenue Sharing Transfers out 75,000 161,353 (86,353) Economic Development Transfers out 71,600 71,887 (287) Police Construction Transfers out - 2,642 (2,642) Bancroft Bond Transfers out 6,520 6,628 (108) PW Facility Construction Transfers out 11,000 12,363 (1,363) Sewer Capital Improvement Transfers out 7,998 8,724 (726) Surfacewater Personal services 225,883 226,385 (502) Information Services Materials and services 383,773 420,767 (36,994) Central Stores Transfers out 1,800 12,830 (11,030) Building Maintenance Personal services 382,036 401,949 (19,913) ---PAGE BREAK--- - 43 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 DEFICIT FUND BALANCES The following funds had negative fund balances at June 30, 2012: Deficit balance at June 30, 2012 Governmental Funds Search and Seizure 22,694 $ General Construction 122,938 CONTINGENCIES The City purchases commercial insurance to cover all commonly insurable risks, which includes property damage, liability and employee bonds. Most policies carry a small deductible amount. No insurance claims settled in each of the prior three years have exceeded policy coverage. The City is a defendant in various litigation proceedings. Management believes any losses arising from these actions will not materially affect the City's financial position. NEW PRONOUNCEMENTS The City will implement new GASB pronouncements no later than the required fiscal year. Management has not determined the effect on the financial statements from implementing any of the pronouncements. GASB Statement No. 61 “The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34.” This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. This Statement also amends the criteria for reporting component units as if they were part of the primary government. The statement is effective for fiscal years beginning after June 15, 2012. GASB Statement No. 62 “Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements.” The objective of this Statement is to incorporate into GASB's authoritative literature certain accounting and financial reporting guidance that were issued on or before November 30, 1989, which do not conflict with or contradict GASB pronouncements. The statement is effective for fiscal years beginning after December 15, 2011. GASB Statement No. 63 “Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.” The statement provides guidance for reporting deferred outflows of resources, deferred inflows of resources, and net position in a statement of financial position. The statement is effective for fiscal years beginning after December 15, 2011. GASB Statement No. 68 “Accounting and Reporting for Pension Plans—an amendment of GASB Statement No. 27.” The statement establishes accounting and financial reporting requirements related to pensions provided by governments. The statement is effective for fiscal years beginning after June 15, 2014. ---PAGE BREAK--- - 44 - CITY OF WOODBURN, OREGON NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2012 SUBSEQUENT EVENTS Management has evaluated subsequent events through December 27, 2012, the date on which the financial statements were available to be issued. Management is not aware of any subsequent events that require recognition or disclosure in the financial statements. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- - 45 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Taxes and assessments 7,743,000 $ 7,743,000 $ 7,713,172 $ (29,828) $ Licenses and permits 1,133,800 1,133,800 1,211,597 77,797 Charges for services 631,631 631,631 633,959 2,328 Intergovernmental 883,960 883,960 653,556 (230,404) Fines and forfeitures 512,000 512,000 734,377 222,377 Miscellaneous 96,500 96,500 209,712 113,212 Total Revenues 11,000,891 11,000,891 11,156,373 155,482 EXPENDITURES Current Council and Mayor 44,926 44,926 42,028 2,898 Administration 170,522 170,522 165,007 5,515 City Recorder 53,964 53,964 45,172 8,792 City Attorney 140,333 140,333 130,735 9,598 Finance 320,166 320,166 310,966 9,200 Human Resources 49,668 49,668 69,969 (20,301) Municipal Court 215,359 215,359 204,552 10,807 Nondepartmental 309,955 309,955 140,212 169,743 Police 6,414,967 6,414,967 6,143,544 271,423 Library 1,233,480 1,223,480 1,040,525 182,955 Recreation 512,575 512,575 392,231 120,344 Swim Center 509,603 509,603 458,572 51,031 C.S. Administration 425,188 425,188 395,900 29,288 Planning 386,507 386,507 335,301 51,206 Parks Maintenance 625,952 625,952 562,381 63,571 Contingency 1,354,049 1,354,049 - 1,354,049 Total Expenditures 12,767,214 12,757,214 10,437,095 2,320,119 REVENUES OVER (UNDER) EXPENDITURES (1,766,323) (1,756,323) 719,278 2,475,601 OTHER FINANCING SOURCES (USES) Transfers in 1,800 1,800 70,698 68,898 Transfers out (426,559) (436,559) (417,857) 18,702 Interfund loan repayment (51,772) (51,772) - 51,772 Total Other Financing Sources and Uses (476,531) (486,531) (347,159) 139,372 NET CHANGE IN FUND BALANCE (2,242,854) (2,242,854) 372,119 2,614,973 FUND BALANCE, beginning of year 2,427,854 2,427,854 2,372,180 (55,674) FUND BALANCE, end of year 185,000 $ 185,000 $ 2,744,299 $ 2,559,299 $ Budget Amounts ---PAGE BREAK--- OTHER SUPPLEMENTARY INFORMATION ---PAGE BREAK--- - 46 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STREET SDC FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Licenses and permits 150,000 $ 150,000 $ 400,172 $ 250,172 $ Miscellaneous 15,300 15,300 24,525 9,225 Total Revenues 165,300 165,300 424,697 259,397 EXPENDITURES Current Materials and services 455,850 455,850 34,278 421,572 Debt Service Principal 34,519 34,519 24,228 10,291 Interest - - 10,291 (10,291) Capital outlay 1,535,753 1,535,753 901,911 633,842 Total Expenditures 2,026,122 2,026,122 970,708 1,055,414 REVENUES OVER (UNDER) EXPENDITURES (1,860,822) (1,860,822) (546,011) 1,314,811 OTHER FINANCING SOURCES (USES) Transfers in 71,600 71,600 71,887 287 Interfund loan repayment 39,222 39,222 - (39,222) Total Other Financing Sources and Uses 110,822 110,822 71,887 (38,935) NET CHANGE IN FUND BALANCE (1,750,000) (1,750,000) (474,124) 1,275,876 FUND BALANCE, beginning of year 1,750,000 1,750,000 5,872,313 4,122,313 FUND BALANCE, end of year - $ - $ 5,398,189 $ 5,398,189 $ Budget Amounts ---PAGE BREAK--- - 47 - CITY OF WOODBURN, OREGON RECONCILIATION OF BUDGETARY FUNDS TO REPORTING FUNDS – GENERAL FUND BALANCE SHEET JUNE 30, 2012 General Fund General Reserve Total (reported as General Fund) ASSETS Cash and investments 3,025,340 $ - $ 3,025,340 $ Accounts receivable 53,948 - 53,948 Property taxes receivable 638,116 - 638,116 Due from other funds 158,639 - 158,639 Total Assets 3,876,043 $ - $ 3,876,043 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 252,684 - 252,684 Deferred revenue 576,316 - 576,316 Due to other funds 302,744 - 302,744 Total Liabilities 1,131,744 - 1,131,744 Fund Balance: Unassigned 2,744,299 2,744,299 Total Fund Balance 2,744,299 - 2,744,299 Total Liabilities and Fund Balance 3,876,043 $ - $ 3,876,043 $ Budgetary funds ---PAGE BREAK--- - 48 - CITY OF WOODBURN, OREGON RECONCILIATION OF BUDGETARY FUNDS TO REPORTING FUNDS – GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2012 General Fund General Reserve Total (reported as General Fund) REVENUES Taxes and assessments 7,713,172 $ - $ 7,713,172 $ Licenses and permits 1,211,597 - 1,211,597 Charges for services 633,959 - 633,959 Intergovernmental 653,556 - 653,556 Fines and forfeitures 734,377 - 734,377 Miscellaneous 209,712 184 209,896 Total Revenues 11,156,373 184 11,156,557 EXPENDITURES Current General government 904,089 - 904,089 Public safety 6,348,096 - 6,348,096 Culture and recreation 3,184,910 - 3,184,910 Total Expenditures 10,437,095 - 10,437,095 REVENUES OVER (UNDER) EXPENDITURES 719,278 184 719,462 OTHER FINANCING SOURCES (USES) Transfers in 70,698 - 70,698 Transfers out (417,857) (74,143) (492,000) Total Other Financing Sources and Uses (347,159) (74,143) (421,302) NET CHANGE IN FUND BALANCE 372,119 (73,959) 298,160 FUND BALANCE, beginning of year 2,372,180 73,959 2,446,139 FUND BALANCE, end of year 2,744,299 $ - $ 2,744,299 $ Budgetary funds ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Transit Building Search and Seizure ASSETS Cash and investments 11,215 $ 119,829 $ - $ Accounts and notes receivable 129,182 - - Property taxes receivable - - - Assessment liens receivable - - - Total Assets 140,397 $ 119,829 $ - $ LIABILITIES AND FUND BALANCE Liabilities: Accounts payable 2,779 $ 24,778 $ - $ Deferred revenue - - Due to other funds 334 214 22,694 Total Liabilities 3,113 24,992 22,694 Fund Balance: Restricted for: Debt service - - - Construction - - - Culture and recreation 137,284 - - Committed to: Public safety - - Public works - 94,837 - Culture and recreation - - - Planning and building - - - Unassigned - - (22,694) Total Fund Balance (Deficits) 137,284 94,837 (22,694) Total Liabilities and Fund Balance 140,397 $ 119,829 $ - $ Special Revenue ---PAGE BREAK--- - 49 - Housing Rehab RSVP Cable Franchise Streets Local Gas Tax Library Endowment 331,123 $ 27,423 $ 1,022 $ 727,490 $ 468,018 $ 26,001 $ - - - 113,990 12,200 - - - - - - - 693,151 - - - - - 1,024,274 $ 27,423 $ 1,022 $ 841,480 $ 480,218 $ 26,001 $ - $ - $ - $ 44,029 $ - $ - $ 693,151 - - - - - 11 56 - 519 - - 693,162 56 - 44,548 - - - - - - - - - - - 796,932 480,218 - - 27,367 - - - 26,001 - - - - - - - - - - - - - - 1,022 - - - 331,112 - - - - - - - - - - - 331,112 27,367 1,022 796,932 480,218 26,001 1,024,274 $ 27,423 $ 1,022 $ 841,480 $ 480,218 $ 26,001 $ Special Revenue ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) JUNE 30, 2012 Museum Endowment Lavelle Black Trust General Construction ASSETS Cash and investments 2,772 $ 49,653 $ - $ Accounts and notes receivable - - - Property taxes receivable - - - Assessment liens receivable - - - Total Assets 2,772 $ 49,653 $ - $ LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - $ - $ - $ Deferred revenue - - - Due to other funds - - 122,938 Total Liabilities - - 122,938 Fund Balance: Restricted for: Debt service - - - Construction - - - Culture and recreation 2,772 - - Committed to: Public safety - 49,653 - Public works - - - Culture and recreation - - - Planning and building - - - Unassigned - - (122,938) Total Fund Balance (Deficits) 2,772 49,653 (122,938) Total Liabilities and Fund Balance 2,772 $ 49,653 $ - $ Special Revenue ---PAGE BREAK--- - 50 - Special Assessment Street/Storm Capital Improvement Parks SDC Storm SDC Equipment Replacement 1,000,961 $ 707,792 $ 446,130 $ 443,092 $ 570,636 $ - - - - - - - - - - 75,932 - - - - 1,076,893 $ 707,792 $ 446,130 $ 443,092 $ 570,636 $ - $ 33,441 $ - $ - $ - $ 75,932 - - - - - - - - - 75,932 33,441 - - - - - - - - - - 446,130 443,092 - - - - - - - - - - - 1,000,961 674,351 - - - - - - - - - - - - 570,636 - - - - - 1,000,961 674,351 446,130 443,092 570,636 1,076,893 $ 707,792 $ 446,130 $ 443,092 $ 570,636 $ Capital Projects ---PAGE BREAK--- - 51 - CITY OF WOODBURN, OREGON COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) JUNE 30, 2012 GO Debt URA Total ASSETS Cash and investments 57,220 $ 1,590,160 $ 6,580,537 $ Accounts and notes receivable - - 255,372 Property taxes receivable 43,129 50,956 94,085 Assessment liens receivable - - 769,083 Total Assets 100,349 $ 1,641,116 $ 7,699,077 $ LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - $ - $ 105,027 $ Deferred revenue 38,952 46,036 854,071 Due to other funds - - 146,766 Total Liabilities 38,952 46,036 1,105,864 Fund Balance: Restricted for: Debt service 61,397 1,595,080 1,656,477 Construction - - 2,166,372 Culture and recreation - - 193,424 Committed to: Public safety - - 49,653 Public works - - 1,770,149 Culture and recreation - - 1,022 Planning and building - - 901,748 Unassigned - - (145,632) Total Fund Balance (Deficits) 61,397 1,595,080 6,593,213 Total Liabilities and Fund Balance 100,349 $ 1,641,116 $ 6,593,213 $ Debt Service ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Transit Building Search and Seizure REVENUES Taxes and assessments 128 $ - $ - $ Licenses and permits - 302,320 - Charges for services 46,180 - - Intergovernmental 433,456 - - Miscellaneous 12,694 73,480 (58) Total Revenues 492,458 375,800 (58) EXPENDITURES Current General government - 312,037 - Public safety - - 10,000 Highways and streets - - - Culture and recreation 579,632 - - Debt Service Principal - - - Interest - - - Capital outlay 19,234 - - Total Expenditures 598,866 312,037 10,000 REVENUES OVER (UNDER) EXPENDITURES (106,408) 63,763 (10,058) OTHER FINANCING SOURCES (USES) Transfers in 151,000 - - Transfers out - - - Total Other Financing Sources and Uses 151,000 - - NET CHANGE IN FUND BALANCE 44,592 63,763 (10,058) FUND BALANCE (DEFICIT), beginning of year 92,692 31,074 (12,636) FUND BALANCE (DEFICIT), end of year 137,284 $ 94,837 $ (22,694) $ Special Revenue ---PAGE BREAK--- - 52 - Weed and Seed Revenue Sharing Housing Rehab RSVP Cable Franchise Streets - $ - $ - $ - $ - $ - $ - - - - 22,585 - - - - - - 1,275 105,914 - - 46,189 - 1,312,024 (30) 703 81,329 75 16 59,638 105,884 703 81,329 46,264 22,601 1,372,937 - - - - 28,621 - 52,796 - - - - - - - - - - 1,058,754 - - 23,427 30,485 - - - - - - - - - - - - - - 17,229 - - - - 8,022 70,025 - 23,427 30,485 28,621 1,066,776 35,859 703 57,902 15,779 (6,020) 306,161 - - 6,628 - - 347,678 (13,865) (161,353) - - - (225,000) (13,865) (161,353) 6,628 - - 122,678 21,994 (160,650) 64,530 15,779 (6,020) 428,839 (21,994) 160,650 266,582 11,588 7,042 368,093 - $ - $ 331,112 $ 27,367 $ 1,022 $ 796,932 $ Special Revenue ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2012 Local Gas Tax Library Endowment Museum Endowment REVENUES Taxes and assessments 182,109 $ - $ - $ Licenses and permits - - - Charges for services - - - Intergovernmental - - - Miscellaneous 1,401 98 10 Total Revenues 183,510 98 10 EXPENDITURES Current General government - - - Public safety - - - Highways and streets 33,211 - - Culture and recreation - - - Debt Service Principal - - - Interest - - - Capital outlay - - - Total Expenditures 33,211 - - REVENUES OVER (UNDER) EXPENDITURES 150,299 98 10 OTHER FINANCING SOURCES (USES) Transfers in 71,277 - - Transfers out - - - Total Other Financing Sources and Uses 71,277 - - NET CHANGE IN FUND BALANCE 221,576 98 10 FUND BALANCE (DEFICIT), beginning of year 258,642 25,903 2,762 FUND BALANCE (DEFICIT), end of year 480,218 $ 26,001 $ 2,772 $ Special Revenue ---PAGE BREAK--- - 53 - Special Revenue Lavelle Black Trust Economic Development Police Construction General Construction Special Assessment Street/Storm Capital Improvement - $ - $ - $ - $ 20,736 $ - $ - - - - - 326,913 - - - - - - - - - - - - 50,347 177 577 (516) 7,131 8,142 50,347 177 577 (516) 27,867 335,055 - - - - - 104,327 15,694 - 49 - - - - - - - 1,196 - - - - - - - - - - - - - - - - - - - - - 341,070 197,441 - 87,696 15,694 - 341,119 197,441 1,196 192,023 34,653 177 (340,542) (197,957) 26,671 143,032 15,000 - - 85,506 - - - (71,887) (2,642) - - - 15,000 (71,887) (2,642) 85,506 - - 49,653 (71,710) (343,184) (112,451) 26,671 143,032 - 71,710 343,184 (10,487) 974,290 531,319 49,653 $ - $ - $ (122,938) $ 1,000,961 $ 674,351 $ Capital Projects ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (Continued) YEAR ENDED JUNE 30, 2012 Parks SDC Storm SDC PW Facility Construction REVENUES Taxes and assessments - $ - $ - $ Licenses and permits 93,824 19,397 - Charges for services - - - Intergovernmental - - - Miscellaneous 1,524 1,615 32 Total Revenues 95,348 21,012 32 EXPENDITURES Current General government 6,846 - - Public safety - - - Highways and streets - - - Culture and recreation - - - Debt Service Principal - - - Interest - - - Capital outlay 48,778 - - Total Expenditures 55,624 - - REVENUES OVER (UNDER) EXPENDITURES 39,724 21,012 32 OTHER FINANCING SOURCES (USES) Transfers in - - - Transfers out - - (12,363) Total Other Financing Sources and Uses - - (12,363) NET CHANGE IN FUND BALANCE 39,724 21,012 (12,331) FUND BALANCE (DEFICIT), beginning of year 406,406 422,080 12,331 FUND BALANCE (DEFICIT), end of year 446,130 $ 443,092 $ - $ Capital Projects ---PAGE BREAK--- - 54 - Equipment Replacement GO Debt Bancroft Bond URA Total - $ 497,316 $ - $ 616,177 $ 1,316,466 $ - - - - 765,039 - - - - 47,455 - - - - 1,897,583 1,765 1,116 20 6,485 307,771 1,765 498,432 20 622,662 4,334,314 - 639 - 151,291 603,761 - - - - 78,539 - - - - 1,093,161 - - - - 633,544 - 290,000 - 193,557 483,557 - 224,431 - 34,175 258,606 102,017 - - - 821,487 102,017 515,070 - 379,023 3,972,655 (100,252) (16,638) 20 243,639 361,659 210,000 - - - 887,089 - - (6,628) - (493,738) 210,000 - (6,628) - 393,351 109,748 (16,638) (6,608) 243,639 755,010 460,888 78,035 6,608 1,351,441 5,838,203 570,636 $ 61,397 $ - $ 1,595,080 $ 6,593,213 $ Debt Service ---PAGE BREAK--- - 55 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - TRANSIT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Taxes and assessments - $ - $ 128 $ 128 $ Charges for services 39,000 39,000 46,180 7,180 Intergovernmental 358,980 358,980 433,456 74,476 Miscellaneous 9,200 9,200 12,694 3,494 Total Revenues 407,180 407,180 492,458 85,278 EXPENDITURES Current Personal services 331,868 366,213 364,666 1,547 Materials and services 259,813 222,641 214,966 7,675 Capital outlay 8,025 20,852 19,234 1,618 Contingency 19,474 9,474 - 9,474 Total Expenditures 619,180 619,180 598,866 20,314 REVENUES OVER (UNDER) EXPENDITURES (212,000) (212,000) (106,408) 105,592 OTHER FINANCING SOURCES (USES) Transfers in 151,000 151,000 151,000 - NET CHANGE IN FUND BALANCE (61,000) (61,000) 44,592 105,592 FUND BALANCE, beginning of year 61,000 61,000 92,692 31,692 FUND BALANCE, end of year - $ - $ 137,284 $ 137,284 $ Budget Amounts ---PAGE BREAK--- - 56 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - BUILDING FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Licenses and permits 153,896 $ 153,896 $ 302,320 $ 148,424 $ Miscellaneous 131,700 131,700 73,480 (58,220) Total Revenues 285,596 285,596 375,800 90,204 EXPENDITURES Current Personal services 208,815 208,631 206,684 1,947 Materials and services 88,326 88,510 105,353 (16,843) Contingency 83,455 83,455 - 83,455 Total Expenditures 380,596 380,596 312,037 68,559 REVENUES OVER (UNDER) EXPENDITURES (95,000) (95,000) 63,763 158,763 OTHER FINANCING SOURCES (USES) Proceeds from interfund loan 80,000 80,000 - (80,000) NET CHANGE IN FUND BALANCE (15,000) (15,000) 63,763 78,763 FUND BALANCE, beginning of year 15,000 15,000 31,074 16,074 FUND BALANCE, end of year - $ - $ 94,837 $ 94,837 $ Budget Amounts ---PAGE BREAK--- - 57 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SEARCH AND SEIZURE FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Intergovernmental 24,000 $ 24,000 $ - $ (24,000) $ Miscellaneous - - (58) (58) Total Revenues 24,000 24,000 (58) (24,058) EXPENDITURES Current Materials and services 24,000 24,000 10,000 14,000 REVENUES OVER (UNDER) EXPENDITURES - - (10,058) (10,058) FUND BALANCE (DEFICIT), beginning of year - - (12,636) (12,636) FUND BALANCE (DEFICIT), end of year - $ - $ (22,694) $ (22,694) $ Budget Amounts ---PAGE BREAK--- - 58 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – WEED AND SEED FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Intergovernmental 161,561 $ 161,561 $ 105,914 $ (55,647) $ Miscellaneous - - (30) (30) Total Revenues 161,561 161,561 105,884 (55,677) EXPENDITURES Current Personal services 129,445 129,445 24,367 105,078 Materials and services 58,545 41,316 28,429 12,887 Capital outlay - 17,229 17,229 - Total Expenditures 187,990 187,990 70,025 117,965 REVENUES OVER (UNDER) EXPENDITURES (26,429) (26,429) 35,859 62,288 OTHER FINANCING SOURCES (USES) Transfers out - - (13,865) (13,865) NET CHANGE IN FUND BALANCE (26,429) (26,429) 21,994 48,423 FUND BALANCE (DEFICIT), beginning of year 26,429 26,429 (21,994) (48,423) FUND BALANCE (DEFICIT), end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 59 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – REVENUE SHARING FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous - $ - $ 703 $ 703 $ EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - 703 703 OTHER FINANCING SOURCES (USES) Transfers out (75,000) (75,000) (161,353) (86,353) NET CHANGE IN FUND BALANCE (75,000) (75,000) (160,650) (85,650) FUND BALANCE, beginning of year 75,000 75,000 160,650 85,650 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 60 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – HOUSING REHABILITATION FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous 22,750 $ 22,750 $ 81,329 $ 58,579 $ EXPENDITURES Current Personal services 10,708 10,708 10,217 491 Materials and services 89,340 89,340 13,210 76,130 Contingency 28,222 28,222 - 28,222 Total Expenditures 128,270 128,270 23,427 104,843 REVENUES OVER (UNDER) EXPENDITURES (105,520) (105,520) 57,902 163,422 OTHER FINANCING SOURCES (USES) Transfers in 6,520 6,520 6,628 108 NET CHANGE IN FUND BALANCE (99,000) (99,000) 64,530 163,530 FUND BALANCE, beginning of year 99,000 99,000 266,582 167,582 FUND BALANCE, end of year - $ - $ 331,112 $ 331,112 $ Budget Amounts ---PAGE BREAK--- - 61 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - RSVP FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Intergovernmental 45,933 $ 45,933 $ 46,189 $ 256 $ Miscellaneous - - 75 75 Total Revenues 45,933 45,933 46,264 331 EXPENDITURES Current Personal services 82,222 81,222 24,404 56,818 Materials and services 5,640 6,640 6,081 559 Total Expenditures 87,862 87,862 30,485 57,377 REVENUES OVER (UNDER) EXPENDITURES (41,929) (41,929) 15,779 57,708 OTHER FINANCING SOURCES (USES) Transfers in 30,259 30,259 - (30,259) NET CHANGE IN FUND BALANCE (11,670) (11,670) 15,779 27,449 FUND BALANCE, beginning of year 11,670 11,670 11,588 (82) FUND BALANCE, end of year - $ - $ 27,367 $ 27,367 $ Budget Amounts ---PAGE BREAK--- - 62 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – CABLE FRANCHISE FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Licenses and permits 24,147 $ 24,147 $ 22,585 $ (1,562) $ Miscellaneous 100 100 16 (84) Total Revenues 24,247 24,247 22,601 (1,646) EXPENDITURES Current Materials and services 28,800 28,800 28,621 179 Contingency 1,000 1,000 - 1,000 Total Expenditures 29,800 29,800 28,621 1,179 REVENUES OVER (UNDER) EXPENDITURES (5,553) (5,553) (6,020) (467) FUND BALANCE, beginning of year 5,553 5,553 7,042 1,489 FUND BALANCE, end of year - $ - $ 1,022 $ 1,022 $ Budget Amounts ---PAGE BREAK--- - 63 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - STREETS FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Charges for services 1,000 $ 1,000 $ 1,275 $ 275 $ Intergovernmental 1,060,000 1,060,000 1,312,024 252,024 Miscellaneous 5,400 5,400 59,638 54,238 Total Revenues 1,066,400 1,066,400 1,372,937 306,537 EXPENDITURES Current Personal services 458,627 456,788 455,991 797 Materials and services 675,836 677,675 602,763 74,912 Capital outlay 8,025 8,025 8,022 3 Contingency 42,854 42,854 - 42,854 Total Expenditures 1,185,342 1,185,342 1,066,776 118,566 REVENUES OVER (UNDER) EXPENDITURES (118,942) (118,942) 306,161 425,103 OTHER FINANCING SOURCES (USES) Transfers in 337,942 337,942 347,678 9,736 Transfers out (225,000) (225,000) (225,000) - Total Other Financing Sources and 112,942 112,942 122,678 9,736 NET CHANGE IN FUND BALANCE (6,000) (6,000) 428,839 434,839 FUND BALANCE, beginning of year 6,000 6,000 368,093 362,093 FUND BALANCE, end of year - $ - $ 796,932 $ 796,932 $ Budget Amounts ---PAGE BREAK--- - 64 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LOCAL GAS TAX FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Taxes and assessments 120,000 $ 120,000 $ 182,109 $ 62,109 $ Miscellaneous 350 350 1,401 1,051 Total Revenues 120,350 120,350 183,510 63,160 EXPENDITURES Current Materials and services 65,884 65,884 33,211 32,673 Capital outlay 309,256 309,256 - 309,256 Contingency 15,268 15,268 - 15,268 Total Expenditures 390,408 390,408 33,211 357,197 REVENUES OVER (UNDER) EXPENDITURES (270,058) (270,058) 150,299 420,357 OTHER FINANCING SOURCES (USES) Transfers in 57,058 57,058 71,277 14,219 NET CHANGE IN FUND BALANCE (213,000) (213,000) 221,576 434,576 FUND BALANCE, beginning of year 213,000 213,000 258,642 45,642 FUND BALANCE, end of year - $ - $ 480,218 $ 480,218 $ Budget Amounts ---PAGE BREAK--- - 65 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LIBRARY ENDOWMENT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous 150 $ 150 $ 98 $ (52) $ EXPENDITURES Contingency 26,084 26,084 - 26,084 REVENUES OVER (UNDER) EXPENDITURES (25,934) (25,934) 98 26,032 FUND BALANCE, beginning of year 25,934 25,934 25,903 (31) FUND BALANCE, end of year - $ - $ 26,001 $ 26,001 $ Budget Amounts ---PAGE BREAK--- - 66 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – MUSEUM ENDOWMENT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous 25 $ 25 $ 10 $ (15) $ EXPENDITURES Contingency 2,784 2,784 - 2,784 REVENUES OVER (UNDER) EXPENDITURES (2,759) (2,759) 10 2,769 FUND BALANCE, beginning of year 2,759 2,759 2,762 3 FUND BALANCE, end of year - $ - $ 2,772 $ 2,772 $ Budget Amounts ---PAGE BREAK--- - 67 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – ECONOMIC DEVELOPMENT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous - $ - $ 177 $ 177 $ EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - 177 177 OTHER FINANCING SOURCES (USES) Transfers out (71,600) (71,600) (71,887) (287) NET CHANGE IN FUND BALANCE (71,600) (71,600) (71,710) (110) FUND BALANCE, beginning of year 71,600 71,600 71,710 110 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 68 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – LAVELLE BLACK TRUST FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous - $ 50,125 $ 50,347 $ 222 $ EXPENDITURES Current Materials and services - 15,938 15,694 244 Contingency - 49,187 - 49,187 Total Expenditures - 65,125 15,694 49,431 REVENUES OVER (UNDER) EXPENDITURES - (15,000) 34,653 49,653 OTHER FINANCING SOURCES (USES) Transfers in - 15,000 15,000 - NET CHANGE IN FUND BALANCE - - 49,653 49,653 FUND BALANCE, beginning of year - - - - FUND BALANCE, end of year - $ - $ 49,653 $ 49,653 $ Budget Amounts ---PAGE BREAK--- - 69 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – POLICE CONSTRUCTION FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous - $ - $ 577 $ 577 $ EXPENDITURES Current Materials and services 50 50 49 1 Capital outlay 51,250 341,250 341,070 180 Total Expenditures 51,300 341,300 341,119 181 REVENUES OVER (UNDER) EXPENDITURES (51,300) (341,300) (340,542) 758 OTHER FINANCING SOURCES (USES) Transfers out - - (2,642) (2,642) NET CHANGE IN FUND BALANCE (51,300) (341,300) (343,184) (1,884) FUND BALANCE, beginning of year 51,300 341,300 343,184 1,884 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 70 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL CONSTRUCTION FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Intergovernmental 40,000 $ 40,000 $ - $ (40,000) $ Miscellaneous - - (516) (516) Total Revenues 40,000 40,000 (516) (40,516) EXPENDITURES Capital outlay 320,000 330,000 197,441 132,559 Contingency 12,500 12,500 - 12,500 Total Expenditures 332,500 342,500 197,441 145,059 REVENUES OVER (UNDER) EXPENDITURES (292,500) (302,500) (197,957) 104,543 OTHER FINANCING SOURCES (USES) Transfers in 72,500 82,500 85,506 3,006 NET CHANGE IN FUND BALANCE (220,000) (220,000) (112,451) 107,549 FUND BALANCE, beginning of year 220,000 220,000 (10,487) (230,487) FUND BALANCE (DEFICIT), end of year - $ - $ (122,938) $ (122,938) $ Budget Amounts ---PAGE BREAK--- - 71 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – SPECIAL ASSESSMENT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Taxes and assessments 33,500 $ 33,500 $ 20,736 $ (12,764) $ Miscellaneous 10,500 10,500 7,131 (3,369) Total Revenues 44,000 44,000 27,867 (16,133) EXPENDITURES Current Materials and services 4,852 4,852 1,196 3,656 Capital outlay 200,000 200,000 - 200,000 Contingency 764,148 764,148 - 764,148 Total Expenditures 969,000 969,000 1,196 967,804 REVENUES OVER (UNDER) EXPENDITURES (925,000) (925,000) 26,671 951,671 FUND BALANCE, beginning of year 925,000 925,000 974,290 49,290 FUND BALANCE, end of year - $ - $ 1,000,961 $ 1,000,961 $ Budget Amounts ---PAGE BREAK--- - 72 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STREET/STORM CAPITAL IMPROVEMENT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Licenses and permits 340,000 $ 340,000 $ 326,913 $ (13,087) $ Miscellaneous 800 800 8,142 7,342 Total Revenues 340,800 340,800 335,055 (5,745) EXPENDITURES Current Materials and services 119,193 119,193 104,327 14,866 Capital outlay 558,002 558,002 87,696 470,306 Contingency 28,605 28,605 - 28,605 Total Expenditures 705,800 705,800 192,023 513,777 REVENUES OVER (UNDER) EXPENDITURES (365,000) (365,000) 143,032 508,032 FUND BALANCE, beginning of year 365,000 365,000 531,319 166,319 FUND BALANCE, end of year - $ - $ 674,351 $ 674,351 $ Budget Amounts ---PAGE BREAK--- - 73 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – PARKS SDC FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Licenses and permits 2,000 $ 2,000 $ 93,824 $ 91,824 $ Miscellaneous 1,000 1,000 1,524 524 Total Revenues 3,000 3,000 95,348 92,348 EXPENDITURES Current Materials and services 20,347 20,347 6,846 13,501 Capital outlay 80,000 95,000 48,778 46,222 Contingency 252,653 252,653 - 252,653 Total Expenditures 353,000 368,000 55,624 312,376 REVENUES OVER (UNDER) EXPENDITURES (350,000) (365,000) 39,724 404,724 FUND BALANCE, beginning of year 350,000 365,000 406,406 41,406 FUND BALANCE, end of year - $ - $ 446,130 $ 446,130 $ Budget Amounts ---PAGE BREAK--- - 74 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – STORM SDC FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Licenses and permits 5,000 $ 5,000 $ 19,397 $ 14,397 $ Miscellaneous 1,500 1,500 1,615 115 Total Revenues 6,500 6,500 21,012 14,512 EXPENDITURES Current Materials and services 30,000 30,000 - 30,000 Capital outlay 316,531 316,531 - 316,531 Contingency 34,969 34,969 - 34,969 Total Expenditures 381,500 381,500 - 381,500 REVENUES OVER (UNDER) EXPENDITURES (375,000) (375,000) 21,012 396,012 FUND BALANCE, beginning of year 375,000 375,000 422,080 47,080 FUND BALANCE, end of year - $ - $ 443,092 $ 443,092 $ Budget Amounts ---PAGE BREAK--- - 75 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – PW FACILITY CONSTRUCTION FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous - $ - $ 32 $ 32 $ EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - 32 32 OTHER FINANCING SOURCES (USES) Transfers out (11,000) (11,000) (12,363) (1,363) NET CHANGE IN FUND BALANCE (11,000) (11,000) (12,331) (1,331) FUND BALANCE, beginning of year 11,000 11,000 12,331 1,331 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 76 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – EQUIPMENT REPLACEMENT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous 1,000 $ 1,000 $ 1,765 $ 765 $ EXPENDITURES Capital outlay 655,474 655,474 102,017 553,457 REVENUES OVER (UNDER) EXPENDITURES (654,474) (654,474) (100,252) 554,222 OTHER FINANCING SOURCES (USES) Transfers in 210,000 210,000 210,000 - NET CHANGE IN FUND BALANCE (444,474) (444,474) 109,748 554,222 FUND BALANCE, beginning of year 444,474 444,474 460,888 16,414 FUND BALANCE, end of year - $ - $ 570,636 $ 570,636 $ Budget Amounts ---PAGE BREAK--- - 77 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL OBLIGATION DEBT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Taxes and assessments 530,000 $ 530,000 $ 497,316 $ (32,684) $ Miscellaneous 200 200 1,116 916 Total Revenues 530,200 530,200 498,432 (31,768) EXPENDITURES Current Materials and services 639 639 639 - Debt service Principal 290,000 290,000 290,000 - Interest 224,431 224,431 224,431 - Contingency 135,130 135,130 - 135,130 Total Expenditures 650,200 650,200 515,070 135,130 REVENUES OVER (UNDER) EXPENDITURES (120,000) (120,000) (16,638) 103,362 FUND BALANCE, beginning of year 120,000 120,000 78,035 (41,965) FUND BALANCE, end of year - $ - $ 61,397 $ 61,397 $ Budget Amounts ---PAGE BREAK--- - 78 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – BANCROFT BOND FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Miscellaneous - $ - $ 20 $ 20 $ EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - 20 20 OTHER FINANCING SOURCES (USES) Transfers out (6,520) (6,520) (6,628) (108) NET CHANGE IN FUND BALANCE (6,520) (6,520) (6,608) (88) FUND BALANCE, beginning of year 6,520 6,520 6,608 88 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 79 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – URBAN RENEWAL DEBT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Taxes and assessments 540,000 $ 540,000 $ 616,177 $ 76,177 $ Miscellaneous 2,000 2,000 6,485 4,485 Total Revenues 542,000 542,000 622,662 80,662 EXPENDITURES Current Personal services 44,964 44,964 44,006 958 Materials and services 355,000 355,000 107,285 247,715 Debt service Principal 193,557 193,557 193,557 - Interest 34,175 34,175 34,175 - Contingency 1,114,304 1,114,304 - 1,114,304 Total Expenditures 1,742,000 1,742,000 379,023 1,362,977 REVENUES OVER (UNDER) EXPENDITURES (1,200,000) (1,200,000) 243,639 1,443,639 FUND BALANCE, beginning of year 1,200,000 1,200,000 1,351,441 151,441 FUND BALANCE, end of year - $ - $ 1,595,080 $ 1,595,080 $ Budget Amounts ---PAGE BREAK--- - 80 - CITY OF WOODBURN, OREGON COMBINING STATEMENT OF FUND NET ASSETS - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS JUNE 30, 2012 Water SDC Sewer SDC Surfacewater Total ASSETS Current Assets Cash and investments 662,183 $ 273,587 $ 55,675 $ 991,445 $ LIABILITIES Current Liabilities Accounts payable - - 514 514 Due to other funds - - 221 221 Total Current Liabilities - - 735 735 NET ASSETS: Restricted for construction 662,183 273,587 - 935,770 Unrestricted - - 54,940 54,940 Total Net Assets 662,183 $ 273,587 $ 54,940 $ 990,710 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS YEAR ENDED JUNE 30, 2012 Sewer Capital Improvement Water SDC Sewer SDC OPERATING REVENUES Miscellaneous - $ 1,060 $ - $ OPERATING EXPENSES Personal services - - - Materials and services - - - Total Operating Expenses - - - OPERATING INCOME (LOSS) - 1,060 - NONOPERATING REVENUES (EXPENSES) Investment revenue 51 2,165 604 Interest expense (1,730) - - Total Nonoperating Receipts (Disbursements) (1,679) 2,165 604 NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS (1,679) 3,225 604 System development revenue - 260,919 166,529 Transfers in - - - Transfers out (36,096) - - CHANGE IN NET ASSETS (37,775) 264,144 167,133 NET ASSETS, Beginning of year 37,775 398,039 106,454 NET ASSETS, End of year - $ 662,183 $ 273,587 $ ---PAGE BREAK--- - 81 - Surfacewater Total - $ 1,060 $ 226,385 226,385 38,966 38,966 265,351 265,351 (265,351) (264,291) 102 2,922 - (1,730) 102 1,192 (265,249) (263,099) - 427,448 235,000 235,000 (1,657) (37,753) (31,906) 361,596 86,846 629,114 54,940 $ 990,710 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - NONMAJOR PROPRIETARY (ENTERPRISE) FUNDS YEAR ENDED JUNE 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Paid to suppliers $ - $ 1,060 Paid to employees - - Net Cash Provided by (Used in) Operating Activities - 1,060 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Received from (paid to) other funds - - Transfers in - - Transfers out (36,096) - Net Cash Provided by (Used in) Non-Capital Financing Activities (36,096) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES System development revenue - 260,919 Interest paid (1,730) - Net Cash Provided by (Used in) Capital and Related Financing Activities (1,730) 260,919 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 51 2,165 Increase (Decrease) in Cash and Investments (37,775) 264,144 CASH AND INVESTMENTS, Beginning of year 37,775 398,039 CASH AND INVESTMENTS, End of year $ - $ 662,183 Improvement SDC Sewer Capital Water RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ - $ 1,060 Change in assets and liabilities Accounts payable and accrued liabilities - - Net Cash Provided by (Used in) Operating Activities $ - $ 1,060 ---PAGE BREAK--- - 82 - Totals $ - $ (40,292) $ (39,232) - (226,385) (226,385) - (266,677) (265,617) - 514 514 - 235,000 235,000 - (1,657) (37,753) - 233,857 197,761 166,529 - 427,448 - - (1,730) 166,529 - 425,718 604 102 2,922 167,133 (32,718) 360,784 106,454 88,393 630,661 $ 273,587 $ 55,675 $ 991,445 SDC Surfacewater Sewer $ - $ (265,351) $ (264,291) - (1,326) (1,326) $ - $ (266,677) $ (265,617) ---PAGE BREAK--- - 83 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET (NON-GAAP BASIS) AND ACTUAL - WATER FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Charges for services 2,148,954 $ 2,148,954 $ 2,191,563 $ 42,609 $ Miscellaneous 4,000 4,000 464 (3,536) Interest earnings 1,500 1,500 1,887 387 Total Revenues 2,154,454 2,154,454 2,193,914 39,460 EXPENDITURES Current Personal services 1,280,389 1,274,874 1,195,296 79,578 Materials and services 708,555 714,070 642,361 71,709 Capital outlay 40,025 40,025 35,604 4,421 Contingency 167,421 167,421 - 167,421 Total Expenditures 2,196,390 2,196,390 1,873,261 323,129 REVENUES OVER (UNDER) EXPENDITURES (41,936) (41,936) 320,653 362,589 OTHER FINANCING SOURCES (USES) Transfers in 85,000 85,000 85,000 - Transfers out (336,000) (336,000) (336,000) - Interfund loan repayment (13,335) (13,335) - 13,335 Gain (loss) on sale of assets - - 5,892 5,892 Total Other Financing Sources and Uses (264,335) (264,335) (245,108) 19,227 NET CHANGE IN FUND BALANCE (306,271) (306,271) 75,545 381,816 FUND BALANCE, beginning of year 306,271 306,271 371,886 65,615 FUND BALANCE, end of year - $ - $ 447,431 $ 447,431 $ Budget Amounts ---PAGE BREAK--- - 84 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL - SEWER FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Charges for services 3,035,250 $ 3,035,250 $ 3,067,533 $ 32,283 $ Miscellaneous 2,500 2,500 4,403 1,903 Interest earnings 1,500 1,500 3,302 1,802 Total Revenues 3,039,250 3,039,250 3,075,238 35,988 EXPENDITURES Current Personal services 1,287,474 1,347,474 1,342,692 4,782 Materials and services 1,025,582 965,582 879,533 86,049 Debt service Principal - - 1,634 (1,634) Capital outlay 126,019 126,019 42,972 83,047 Contingency 289,838 289,838 - 289,838 Total Expenditures 2,728,913 2,728,913 2,266,831 462,082 REVENUES OVER (UNDER) EXPENDITURES 310,337 310,337 808,407 498,070 OTHER FINANCING SOURCES (USES) Transfers in 7,998 7,998 8,724 726 Transfers out (695,000) (695,000) (695,000) - Interfund loan repayment (13,335) (13,335) - 13,335 Total Other Financing Sources and Uses (700,337) (700,337) (686,276) 14,061 NET CHANGE IN FUND BALANCE (390,000) (390,000) 122,131 512,131 FUND BALANCE, beginning of year 390,000 390,000 519,488 129,488 FUND BALANCE, end of year - $ - $ 641,619 $ 641,619 $ Budget Amounts ---PAGE BREAK--- - 85 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL – WWTP CONSTRUCTION FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Charges for services 3,010,721 $ 3,010,721 $ 3,101,696 $ 90,975 $ Intergovernmental 3,100,000 3,100,000 - (3,100,000) Miscellaneous - - 64,472 64,472 Interest earnings 1,000 1,000 40,727 39,727 Total Revenues 6,111,721 6,111,721 3,206,895 (2,904,826) EXPENDITURES Current Materials and services 1,210,000 1,460,000 1,032,140 427,860 Debt service Principal 1,824,823 1,854,823 20,531,208 (18,676,385) Interest 689,776 689,776 838,110 (148,334) Capital outlay 2,076,495 1,876,495 439,110 1,437,385 Contingency 1,030,627 1,030,627 - 1,030,627 Total Expenditures 6,831,721 6,911,721 22,840,568 (15,928,847) REVENUES OVER (UNDER) EXPENDITURES (720,000) (800,000) (19,633,673) (18,833,673) OTHER FINANCING SOURCES (USES) Proceeds from issuance of debt - - 37,179,643 37,179,643 NET CHANGE IN FUND BALANCE (720,000) (800,000) 17,545,970 18,345,970 FUND BALANCE, beginning of year 720,000 800,000 28,718 (771,282) FUND BALANCE, end of year - $ - $ 17,574,688 $ 17,574,688 $ Budget Amounts ---PAGE BREAK--- - 86 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL – WWD CONSTRUCTION FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Charges for services 1,095,000 $ 1,095,000 $ 1,074,732 $ (20,268) $ Intergovernmental - - 10,369 10,369 Miscellaneous - - 30,457 30,457 Interest earnings 10,000 10,000 18,895 8,895 Total Revenues 1,105,000 1,105,000 1,134,453 29,453 EXPENDITURES Current Materials and services 220,000 220,000 115,294 104,706 Debt service Principal 596,127 596,127 596,127 - Interest 559,290 559,290 559,290 - Capital outlay 1,847,456 1,847,456 353,607 1,493,849 Contingency 1,167,910 1,167,910 - 1,167,910 Total Expenditures 4,390,783 4,390,783 1,624,318 2,766,465 REVENUES OVER (UNDER) EXPENDITURES (3,285,783) (3,285,783) (489,865) 2,795,918 OTHER FINANCING SOURCES (USES) Proceeds from issuance of debt 136,219 136,219 - (136,219) NET CHANGE IN FUND BALANCE (3,149,564) (3,149,564) (489,865) 2,659,699 FUND BALANCE, beginning of year 3,149,564 3,149,564 5,168,766 2,019,202 FUND BALANCE, end of year - $ - $ 4,678,901 $ 4,678,901 $ Budget Amounts ---PAGE BREAK--- - 87 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL – SEWER CAPITAL IMPROVEMENT FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Interest earnings 100 $ 100 $ 51 $ (49) $ EXPENDITURES Debt service Principal 29,102 29,102 27,372 1,730 Interest - - 1,730 (1,730) Total Expenditures 29,102 29,102 29,102 - REVENUES OVER (UNDER) EXPENDITURES (29,002) (29,002) (29,051) (49) OTHER FINANCING SOURCES (USES) Transfers out (7,998) (7,998) (8,724) (726) NET CHANGE IN FUND BALANCE (37,000) (37,000) (37,775) (775) FUND BALANCE, beginning of year 37,000 37,000 37,775 775 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 88 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL - WATER SDC FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Licenses and permits 25,000 $ 25,000 $ 260,919 $ 235,919 $ Miscellaneous - - 1,060 1,060 Interest earnings 1,200 1,200 2,165 965 Total Revenues 26,200 26,200 264,144 237,944 EXPENDITURES Current Materials and services 35,000 35,000 - 35,000 Capital outlay 313,207 313,207 - 313,207 Contingency 37,993 37,993 - 37,993 Total Expenditures 386,200 386,200 - 386,200 REVENUES OVER (UNDER) EXPENDITURES (360,000) (360,000) 264,144 624,144 FUND BALANCE, beginning of year 360,000 360,000 398,039 38,039 FUND BALANCE, end of year - $ - $ 662,183 $ 662,183 $ Budget Amounts ---PAGE BREAK--- - 89 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL - SEWER SDC FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Licenses and permits 15,000 $ 15,000 $ 166,529 $ 151,529 $ Interest earnings 300 300 604 304 Total Revenues 15,300 15,300 167,133 151,833 EXPENDITURES Current Materials and services 12,000 12,000 - 12,000 Capital outlay 95,263 95,263 - 95,263 Total Expenditures 107,263 107,263 - 107,263 REVENUES OVER (UNDER) EXPENDITURES (91,963) (91,963) 167,133 259,096 FUND BALANCE, beginning of year 91,963 91,963 106,454 14,491 FUND BALANCE, end of year - $ - $ 273,587 $ 273,587 $ Budget Amounts ---PAGE BREAK--- - 90 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL – SURFACEWATER FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Interest earnings 100 $ 100 $ 103 $ 3 $ EXPENDITURES Current Personal services 227,354 225,883 226,385 (502) Materials and services 47,561 49,032 36,467 12,565 Capital outlay 9,506 9,506 4,157 5,349 Contingency 53,494 53,494 - 53,494 Total Expenditures 337,915 337,915 267,009 70,906 REVENUES OVER (UNDER) EXPENDITURES (337,815) (337,815) (266,906) 70,909 OTHER FINANCING SOURCES (USES) Transfers in 235,000 235,000 235,000 - NET CHANGE IN FUND BALANCE (102,815) (102,815) (31,906) 70,909 FUND BALANCE, beginning of year 102,815 102,815 86,846 (15,969) FUND BALANCE, end of year - $ - $ 54,940 $ 54,940 $ Budget Amounts ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF FUND NET ASSETS - INTERNAL SERVICE FUNDS JUNE 30, 2012 Information Services Insurance Technical & Environmental Services ASSETS Current Assets Cash and investments 93,441 $ 369,370 $ 96,870 $ Accounts receivable 4,000 - - Total Assets 97,441 369,370 96,870 LIABILITIES Current Liabilities Accounts payable 46,760 69,726 2,093 Due to other funds 328 35 1,067 Total Current Liabilities 47,088 69,761 3,160 Noncurrent Liabilities Accrued compensated absences - - 75,169 Total Liabilities 47,088 69,761 78,329 NET ASSETS: Unrestricted 50,353 299,609 18,541 Total Net Assets 50,353 $ 299,609 $ 18,541 $ ---PAGE BREAK--- - 91 - Building Maintenance Total 88,331 $ 648,012 $ - 4,000 88,331 652,012 20,717 139,296 487 1,917 21,204 141,213 17,395 92,564 38,599 233,777 49,732 418,235 49,732 $ 418,235 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2012 Information Services Central Stores Insurance OPERATING REVENUES Licenses and permits - $ - $ - $ Charges for services 733,735 577 589,277 Miscellaneous 20,040 - 8,264 Total Operating Revenues 753,775 577 597,541 OPERATING EXPENSES Personal services 293,436 - 31,912 Materials and services 532,067 - 472,847 Total Operating Expenses 825,503 - 504,759 OPERATING INCOME (LOSS) (71,728) 577 92,782 NONOPERATING REVENUES (EXPENSES) Investment revenue (491) (24) (123) NET INCOME BEFORE CONTRIBUTIONS AND TRANSFERS (72,219) 553 92,659 Transfers in 12,830 5,063 - Transfers out (72,368) (12,830) - CHANGE IN NET ASSETS (131,757) (7,214) 92,659 NET ASSETS, Beginning of year 182,110 7,214 206,950 NET ASSETS, End of year 50,353 $ - $ 299,609 $ ---PAGE BREAK--- - 92 - Technical & Environmental Services Building Maintenance Total 68,277 $ - $ 68,277 $ 523,208 658,946 2,505,743 9,416 2,754 40,474 600,901 661,700 2,614,494 1,074,779 390,548 1,790,675 245,379 293,027 1,543,320 1,320,158 683,575 3,333,995 (719,257) (21,875) (719,501) (789) (160) (1,587) (720,046) (22,035) (721,088) 667,000 - 684,893 (288,965) (115,663) (489,826) (342,011) (137,698) (526,021) 360,552 187,430 944,256 18,541 $ 49,732 $ 418,235 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2012 Information Central Services Stores Insurance CASH FLOWS FROM OPERATING ACTIVITIES Collected from customers 753,775 $ 577 $ 597,541 $ Paid to suppliers (486,925) - (403,159) Paid to employees (326,221) - (31,912) Net Cash Provided by (Used in) Operating Activities (59,371) 577 162,470 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Received from (paid to) other funds 6,290 (3,693) 35 Transfers in 12,830 5,063 - Transfers out (11,678) (1,923) - Net Cash Provided by (Used in) Non-Capital Financing Activities 7,442 (553) 35 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments (491) (24) (123) Increase (Decrease) in Cash and Investments (52,420) - 162,382 CASH AND INVESTMENTS, Beginning of year 145,861 - 206,988 CASH AND INVESTMENTS, End of year 93,441 $ - $ 369,370 $ RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) (71,728) $ 577 $ 92,782 $ Compensated absences payable (32,785) - - Accounts payable and accrued liabilities 45,142 - 69,688 Net Cash Provided by (Used in) Operating Activities (59,371) $ 577 $ 162,470 $ Noncash Transactions Transfer of capital assets (60,690) $ - $ - $ ---PAGE BREAK--- - 93 - Technical and Environmental Building Services Maintenance Totals 600,901 $ 661,700 $ 2,614,494 $ (245,848) (289,398) (1,425,330) (1,085,576) (401,949) (1,845,658) (730,523) (29,647) (656,494) 984 487 4,103 667,000 - 684,893 (5,000) - (18,601) 662,984 487 670,395 (788) (160) (1,586) (68,327) (29,320) 12,315 165,197 117,651 635,697 96,870 $ 88,331 $ 648,012 $ (719,257) $ (21,875) $ (719,501) $ (10,797) (11,401) (54,983) (469) 3,629 117,990 (730,523) $ (29,647) $ (656,494) $ (283,965) $ (115,663) $ (460,318) $ ---PAGE BREAK--- - 94 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL – INFORMATION SERVICES FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Charges for services 704,674 $ 719,674 $ 733,735 $ 14,061 $ Miscellaneous - 20,000 20,040 40 Interest earnings - - (491) (491) Total Revenues 704,674 739,674 753,284 13,610 EXPENDITURES Current Personal services 339,027 338,659 326,221 12,438 Materials and services 364,405 383,773 420,767 (36,994) Capital outlay 120,300 136,300 122,978 13,322 Contingency 35,942 35,942 - 35,942 Total Expenditures 859,674 894,674 869,966 24,708 REVENUES OVER (UNDER) EXPENDITURES (155,000) (155,000) (116,682) 38,318 OTHER FINANCING SOURCES (USES) Transfers in - - 12,830 12,830 NET CHANGE IN FUND BALANCE (155,000) (155,000) (103,852) 51,148 FUND BALANCE, beginning of year 155,000 155,000 154,205 (795) FUND BALANCE, end of year - $ - $ 50,353 $ 50,353 $ Budget Amounts ---PAGE BREAK--- - 95 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL – CENTRAL STORES FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Charges for services - $ - $ 577 $ 577 $ Interest earnings - - (24) (24) Total Revenues - - 553 553 EXPENDITURES - - - - REVENUES OVER (UNDER) EXPENDITURES - - 553 553 OTHER FINANCING SOURCES (USES) Transfers in - - 5,063 5,063 Transfers out (1,800) (1,800) (12,830) (11,030) Total Other Financing Sources and Uses (1,800) (1,800) (7,767) (5,967) NET CHANGE IN FUND BALANCE (1,800) (1,800) (7,214) (5,414) FUND BALANCE, beginning of year 1,800 1,800 7,214 5,414 FUND BALANCE, end of year - $ - $ - $ - $ Budget Amounts ---PAGE BREAK--- - 96 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL – INSURANCE FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Charges for services 589,278 $ 589,278 $ 589,277 $ $ Miscellaneous - - 8,264 8,264 Interest earnings 100 100 (123) (223) Total Revenues 589,378 589,378 597,418 8,040 EXPENDITURES Current Personal services 58,099 58,099 31,910 26,189 Materials and services 493,865 493,865 472,848 21,017 Contingency 337,414 337,414 - 337,414 Total Expenditures 889,378 889,378 504,758 384,620 REVENUES OVER (UNDER) EXPENDITURES (300,000) (300,000) 92,660 392,660 FUND BALANCE, beginning of year 300,000 300,000 206,950 (93,050) FUND BALANCE, end of year - $ - $ 299,610 $ 299,610 $ Budget Amounts ---PAGE BREAK--- - 97 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL – TECHNICAL & ENVIRONMENTAL SERVICES FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Licenses and permits 59,300 $ 59,300 $ 68,277 $ 8,977 $ Charges for services 528,000 528,000 523,208 (4,792) Miscellaneous - - 9,416 9,416 Interest earnings 420 420 (789) (1,209) Total Revenues 587,720 587,720 600,112 12,392 EXPENDITURES Current Personal services 1,110,966 1,119,369 1,085,576 33,793 Materials and services 299,903 291,500 245,378 46,122 Contingency 99,438 99,438 - 99,438 Total Expenditures 1,510,307 1,510,307 1,330,954 179,353 REVENUES OVER (UNDER) EXPENDITURES (922,587) (922,587) (730,842) 191,745 OTHER FINANCING SOURCES (USES) Transfers in 667,000 667,000 667,000 - Transfers out (5,000) (5,000) (5,000) - Total Other Financing Sources and Uses 662,000 662,000 662,000 - NET CHANGE IN FUND BALANCE (260,587) (260,587) (68,842) 191,745 FUND BALANCE, beginning of year 260,587 260,587 162,552 (98,035) FUND BALANCE, end of year - $ - $ 93,710 $ 93,710 $ Budget Amounts ---PAGE BREAK--- - 98 - CITY OF WOODBURN, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL – BUILDING MAINTENANCE FUND YEAR ENDED JUNE 30, 2012 Original Final Actual Variance REVENUES Charges for services 658,945 $ 658,945 $ 658,946 $ 1 $ Miscellaneous - - 2,754 2,754 Interest earnings 30 30 (160) (190) Total Revenues 658,975 658,975 661,540 2,565 EXPENDITURES Current Personal services 373,507 382,036 401,949 (19,913) Materials and services 342,968 334,439 293,027 41,412 Contingency 62,500 62,500 - 62,500 Total Expenditures 778,975 778,975 694,976 83,999 REVENUES OVER (UNDER) EXPENDITURES (120,000) (120,000) (33,436) 86,564 FUND BALANCE, beginning of year 120,000 120,000 100,563 (19,437) FUND BALANCE, end of year - $ - $ 67,127 $ 67,127 $ Budget Amounts ---PAGE BREAK--- OTHER FINANCIAL SCHEDULES ---PAGE BREAK--- - 99 - CITY OF WOODBURN, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES YEAR ENDED JUNE 30, 2012 Uncollected Interest, Uncollected 2011-12 Balance Discounts and Balances Tax Year Levy July 1, 2011 Adjustments Collections June 30, 2012 2011-12 8,659,913 $ - $ (249,089) $ (8,099,206) $ 311,618 $ 2010-11 - 383,374 (60,987) (153,481) 168,906 2009-10 - 199,224 (42,582) (52,685) 103,957 2008-09 - 118,719 (7,267) (66,414) 45,038 2007-08 - 40,013 (2,472) (26,265) 11,276 2006-07 - 7,189 (870) (1,527) 4,792 2005-06 - 4,545 (532) (672) 3,341 Prior - 13,925 (925) (624) 12,376 8,659,913 $ 766,989 $ (364,724) $ (8,400,874) $ 661,304 Cash with county 70,897 Property taxes receivable 732,201 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON SCHEDULE OF DEBT PRINCIPAL AND INTEREST TRANSACTIONS YEAR ENDED JUNE 30, 2012 Interest Date of Fiscal Year Rates Issue of Maturity PRINCIPAL TRANSACTIONS Governmental Activities Series 2005 GO Bonds 4.85-4.9% 2005 2024-25 1999 OEDD Loan 5.01% 1999 2017-18 2005 URA Loan 4.22% 2005 2015-16 Subtotal, governmental activities Business-type Activities Series 2003 Water Bonds 3.00-4.63% 2003 2028-29 1992 OEDD Loan 6.32% 1992 2011-12 2005 OEDD Loan 4.21% 2005 2024-25 2005 SDWR Loan 4.21% 2005 2024-25 1999 OEDD Loan 4.74% 1999 2017-18 1999 OEDD Loan 3.93% 1999 2018-19 2001 OEDD Loan 3.87% 2001 2018-19 2007 Oregon DEQ Loan 1.05% 2007 2013-14 2007 Oregon DEQ Loan 1.53% 2007 2030-31 Series 2011 Sewer Bonds Subtotal, business-type activities ---PAGE BREAK--- - 100 - Outstanding Outstanding July 1, New Principal June 30, 2011 Issues Paid 2012 5,655,000 $ - $ (290,000) $ 5,365,000 $ 204,441 - (24,228) 180,213 881,793 - (193,557) 688,236 6,741,234 - (507,785) 6,233,449 6,778,648 - (259,485) 6,519,163 27,372 - (27,372) - 3,123,640 - (168,321) 2,955,319 3,123,649 - (168,321) 2,955,328 241,585 - (241,585) - 1,904,005 - (1,904,005) - 15,707,096 - (15,707,096) - 614,287 - (614,287) - 939,236 - (939,236) - - 34,416,557 (1,125,000) 33,291,557 32,459,518 34,416,557 (21,154,708) 45,721,367 39,200,752 $ 34,416,557 $ (21,662,493) $ 51,954,816 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON SCHEDULE OF DEBT PRINCIPAL AND INTEREST TRANSACTIONS (Continued) YEAR ENDED JUNE 30, 2012 Unmatured Interest Outstanding Interest Date of July 1, Rates Issue 2011 INTEREST TRANSACTIONS Governmental Activities Series 2005 GO Bonds 4.85-4.9% 2005 1,913,269 $ 1999 OEDD Loan 5.01% 1999 43,670 2005 URA Loan 4.22% 2005 86,068 Subtotal, governmental activities 2,043,007 Business-type Activities Series 2003 Water Bonds 3.00-4.63% 2003 3,260,327 1992 OEDD Loan 6.32% 1992 1,730 2005 OEDD Loan 4.21% 2005 1,073,925 2005 SDWR Loan 4.21% 2005 1,073,925 1999 OEDD Loan 4.74% 1999 50,570 1999 OEDD Loan 3.93% 1999 312,879 2001 OEDD Loan 3.87% 2001 3,384,492 Series 2011 Sewer Bonds - Subtotal, business-type activities 9,157,848 11,200,855 $ ---PAGE BREAK--- - 101 - Unmatured Interest New Interest June 30, Issues Paid/Matured 2012 - $ (224,431) $ 1,688,838 $ - (10,291) 33,379 - (34,175) 51,893 - (268,897) 1,774,110 - (296,279) 2,964,048 - (1,730) - - (131,505) 942,420 - (131,505) 942,420 - (50,570) - - (312,879) - - (3,384,492) - 10,099,253 (264,306) 9,834,947 10,099,253 (4,573,266) 14,683,835 10,099,253 $ (4,842,163) $ 16,457,945 $ ---PAGE BREAK--- CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS JUNE 30, 2012 Fiscal Year Ending June 30, 2013 $ 300,000 $ 214,281 $ 514,281 $ 24,440 $ 9,079 $ 35,292 2014 320,000 203,781 523,781 29,663 7,857 32,351 2015 335,000 192,261 527,261 29,895 6,373 36,268 2016 350,000 179,866 529,866 30,141 4,879 35,020 2017 370,000 166,566 536,566 30,399 3,371 33,770 2018 385,000 152,136 537,136 35,675 1,820 37,495 2019 405,000 136,736 541,736 - - - 2020 425,000 120,536 545,536 - - - 2021 445,000 103,536 548,536 - - - 2022 470,000 85,180 555,180 - - - 2023 495,000 65,793 560,793 - - - 2024 520,000 45,003 565,003 - - - 2025 545,000 23,163 568,163 - - - 2026 - - - - - - 2027 - - - - - - 2028 - - - - - - 2029 - - - - - - 2030 - - - - - - 2031 - - - - - - $ 5,365,000 $ 1,688,838 $ 7,053,838 $ 180,213 $ 33,379 $ 213,592 2005 General Obligation Bonds 1999 OEDD Loan Total Principal Interest Total Principal Interest ---PAGE BREAK--- - 102 - $ 201,855 $ 25,877 $ 227,732 $ 271,065 $ 287,068 $ 558,133 210,509 17,223 227,732 282,734 277,241 559,975 219,534 8,198 227,732 289,548 266,498 556,046 56,338 595 56,933 301,530 254,916 556,446 - - - 313,591 242,854 556,445 - - - 325,789 229,997 555,786 - - - 343,132 216,314 559,446 - - - 355,631 201,559 557,190 - - - 373,299 185,912 559,211 - - - 391,148 169,113 560,261 - - - 404,158 151,316 555,474 - - - 427,356 132,624 559,980 - - - 445,702 112,858 558,560 - - - 464,204 92,245 556,449 - - - 487,867 70,775 558,642 - - - 511,700 48,211 559,911 - - - 530,709 24,547 555,256 - - - - - - - - - - - - $ 688,236 $ 51,893 $ 740,129 $ 6,519,163 $ 2,964,048 $ 9,483,211 2005 URA Loan 2003 Water Bonds Principal Interest Total Principal Interest Total ---PAGE BREAK--- CITY OF WOODBURN, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS (Continued) JUNE 30, 2012 Fiscal Year Ending June 30, 2013 $ 175,407 $ 124,419 $ 299,826 $ 175,407 $ 124,419 $ 299,826 2014 182,792 117,034 299,826 182,792 117,034 299,826 2015 190,487 109,339 299,826 190,487 109,339 299,826 2016 198,507 101,319 299,826 198,507 101,319 299,826 2017 206,864 92,962 299,826 206,864 92,962 299,826 2018 215,573 84,253 299,826 215,573 84,253 299,826 2019 224,649 75,178 299,827 224,649 75,178 299,827 2020 234,106 65,720 299,826 234,106 65,720 299,826 2021 243,962 55,864 299,826 243,962 55,864 299,826 2022 254,233 45,593 299,826 254,233 45,593 299,826 2023 264,936 34,890 299,826 264,936 34,890 299,826 2024 276,090 23,736 299,826 276,090 23,736 299,826 2025 287,713 12,113 299,826 287,722 12,113 299,835 2026 - - - - - - 2027 - - - - - - 2028 - - - - - - 2029 - - - - - - 2030 - - - - - - 2031 - - - - - - $ 2,955,319 $ 942,420 $ 3,897,739 $ 2,955,328 $ 942,420 $ 3,897,748 2005 OEDD Loan 2005 SDWR Loan Principal Interest Total Principal Interest Total ---PAGE BREAK--- - 103 - $ 1,865,000 $ 1,085,663 $ 2,950,663 $ 3,013,174 $ 1,870,806 $ 4,883,980 2,265,153 1,044,559 3,309,712 3,473,643 1,784,729 5,258,372 2,755,000 972,713 3,727,713 4,009,951 1,664,721 5,674,672 2,478,685 901,377 3,380,062 3,613,708 1,544,271 5,157,979 2,603,647 930,165 3,533,812 3,731,365 1,528,880 5,260,245 3,165,000 724,563 3,889,563 4,342,610 1,277,022 5,619,632 3,615,000 629,613 4,244,613 4,812,430 1,133,019 5,945,449 3,469,529 999,333 4,468,862 4,718,372 1,452,868 6,171,240 3,696,001 1,042,861 4,738,862 5,002,224 1,444,037 6,446,261 4,870,000 266,113 5,136,113 6,239,614 611,592 6,851,206 2,013,541 1,144,071 3,157,612 3,442,571 1,430,960 4,873,531 55,000 20,412 75,412 1,554,536 245,511 1,800,047 60,000 18,212 78,212 1,626,137 178,459 1,804,596 60,000 15,813 75,813 524,204 108,058 632,262 65,000 13,412 78,412 552,867 84,187 637,054 65,000 10,812 75,812 576,700 59,023 635,723 70,000 8,131 78,131 600,709 32,678 633,387 75,000 5,156 80,156 75,000 5,156 80,156 45,000 1,968 46,968 45,000 1,968 46,968 $ 33,291,556 $ 9,834,947 $ 43,126,503 $ 51,954,815 $ 16,457,945 $ 68,412,760 2011 Sewer Bonds Totals Total Principal Interest Total Principal Interest ---PAGE BREAK--- REGULATORY SECTION ---PAGE BREAK--- - 104 - 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT REQUIRED BY OREGON STATE REGULATIONS Honorable Mayor and Council Members City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 We have audited the basic financial statements of the City of Woodburn as of and for the year ended June 30, 2012, and have issued our report thereon dated December 27, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Compliance 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: ƒ Deposit of public funds with financial institutions (ORS Chapter 295). ƒ Indebtedness limitations, restrictions and repayment. ƒ Budgets legally required (ORS Chapter 294). ƒ Insurance and fidelity bonds in force or required by law. ƒ Programs funded from outside sources. ƒ Highway revenues used for public highways, roads, and streets. ƒ Authorized investment of surplus funds (ORS Chapter 294). ƒ Public contracts and purchasing (ORS Chapters 279A, 279B, 279C). ƒ Accountability for collecting or receiving money by elected officials – no money was collected or received by elected officials. In connection with our testing nothing came to our attention that caused us to believe the City was not in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations, except as follows. ---PAGE BREAK--- - 105 - 1. The City failed to file financial statements on a timely basis in the prior year 2. In some instances the actual ending balances for the second preceding year did not equal the actual beginning balances for the first preceding year. 3. In some instances budgeted transfers in did not equal budgeted transfers out. In addition, the total budgeted transfers out did not agree to the LB-1 form. 4. Form LB-1 included a Statement of Indebtedness which contained information that did not match the amortization schedules. 5. The City sometimes did not separately budget for principal and interest. Additionally, the budgeted debt service sometimes did not match the amortization schedule. 6. The budget does not list each bond or loan separately. This is required by ORS 294.352(7). 7. In some instances the summary totals of each expense category did not match the totals on forms LB-1 and UB-1. 8. The notice of Budget Committee meeting was published only 3 days prior to the meeting. 9. Outstanding checks that were more than two years old have not been turned over to the State Department of Lands as required by ORS 98. The City is in the process of addressing this situation. 10. Expenditures exceeded appropriations, and there were deficit fund balances as detailed in the notes to the financial statements. OAR [SSN REDACTED] Internal Control In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures 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 over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. Our findings and questioned costs are incorporated into the City's Single Audit filing. This report is intended solely for the information and use of the board of council members and management of the City of Woodburn and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS By: Thomas E. Glogau, A Shareholder December 27, 2012 ---PAGE BREAK--- CITY OF WOODBURN FEDERAL GRANT COMPLIANCE REPORTS Year Ended June 30, 2012 ---PAGE BREAK--- CITY OF WOODBURN FEDERAL GRANT COMPLIANCE REPORTS TABLE OF CONTENTS Page Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 2-3 Independent Auditor’s Report on Compliance with Requirements that Could Have a Direct and Material Effect on each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 4-5 Schedule of Expenditures of Federal Awards 6-7 Notes to Schedule of Expenditures of Federal Awards 8 Summary of Findings and Questioned Costs 9-10 Schedule of Findings and Questioned Costs – Prior Year 11 ---PAGE BREAK--- - 2 - 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Council Members City of Woodburn 270 Montgomery St. Woodburn, Oregon 97071 We have audited the 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, 2012, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 27, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of City of Woodburn, State of Oregon, is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the City’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in internal control over financial reporting, described in the accompanying schedule of findings and questioned costs that we consider to be significant deficiencies in internal control over financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the finding 2012-01 described in the accompanying schedule of findings and questioned costs to be significant a deficiency. ---PAGE BREAK--- - 3 - Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement 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. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The City of Woodburn, Oregon’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the City of Woodburn, Oregon’s responses and, accordingly, we express no opinion on them. This report is intended solely for the information and use of management, the City Council, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. CERTIFIED PUBLIC ACCOUNTANTS December 27, 2012 ---PAGE BREAK--- - 4 - 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Honorable Mayor and Council Members City of Woodburn 270 Montgomery St. Woodburn, Oregon 97071 Compliance We have audited the City of Woodburn, Oregon’s (the City) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2012. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City’s management. Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with those requirements. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effective of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. ---PAGE BREAK--- - 5 - A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies as described in the accompanying schedule of findings and questioned costs as findings 2012-02 and 2012-03. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Schedule of Expenditures of Federal Awards We have audited the 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, as of and for the year ended June 30, 2012, and have issued our report thereon dated December 27, 2012, which contained unqualified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements as a whole. The schedule of expenditures of federal awards is presented for the purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The City of Woodburn, Oregon’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the City of Woodburn, Oregon’s responses and, accordingly, we express no opinion on them. This report is intended solely for the information and use of management, the City Council, others within the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. CERTIFIED PUBLIC ACCOUNTANTS December 27, 2012 ---PAGE BREAK--- See notes to schedule of expenditures of federal awards. - 6 - CITY OF WOODBURN, OREGON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2012 Federal Pass-through CFDA Federal ID Number Award Expenditures U.S. Department of Justice Passed through the City of Salem JAG Program Cluster ARRA Recovery Act - Edward Byne Memorial Justice Assistance Grant Program Marion County Police Agencies Grant 2009-SB-B9-1400 16.804 55,864 $ 3,671 $ Recovery Act - Edward Byrne Memorial Competitive Grant Progam 2009-SC-B9-0162 16.808 5,000 5,000 Community Capacity Development Office The Weed and Seed Program n/a 16.595 157,000 105,914 Office of Juvenile Justice and Delinquency Prevention Juvenile Mentoring Program 2010-JU-FX-0025 16.726 30,000 15,514 Total Department of Justice 130,099 U.S. Department of Transportation Passed through Oregon Department of Transportation Rural Area Transit - Operations 27424 20.509 129,094 129,094 Transit Services Program Cluster Program for Elderly Persons and Persons with Disabilities - Operations 27736 20.513 130,876 89,048 Program for Elderly Persons and Persons with Disabilities - Equipment 27735 20.513 27,054 17,934 Program for Elderly Persons and Persons with Disabilities - Vehicle Maintenance 27735 20.513 115,823 88,878 Job Access/Reserve Commute - Operations 27646 20.516 64,816 7,990 New Freedom Program - Operations 27632 20.521 93,523 18,107 Total Transit Services Program Cluster 221,957 Federal Grantor/Program Title ---PAGE BREAK--- See notes to schedule of expenditures of federal awards. - 7 - CITY OF WOODBURN, OREGON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2012 Federal Pass-through CFDA Federal ID Number Award Expenditures U.S. Department of Transportation (continued) Passed through Oregon Department of Transportation Highway Safety Cluster Alcohol Impaired Driving Countermeasure Initiative K8-11-12-38 20.601 9,000 $ 9,000 $ Occupant Protection Incentive OP-11-45-08 20.602 3,000 610 Total Highway Safety Cluster 9,610 Total Department of Transportation 360,661 Corporation for National and Community Service Retired and Senior Volunteer Program n/a 94.002 46,189 46,189 Total Expenditures of Federal Awards 536,949 $ Federal Grantor/Program Title ---PAGE BREAK--- - 8 - CITY OF WOODBURN, OREGON NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2012 PURPOSE OF THE SCHEDULE The accompanying schedule of expenditures of federal awards (the “Schedule”) is a supplementary schedule to the City of Woodburn’s basic financial statements and is presented for purposes of additional analysis. Because the Schedule presents only a selected portion of the activities of the City, it is not intended to and does not present either the financial position or the results of operations of the City. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The information in the Schedule is presented in accordance with OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Federal Financial Assistance Pursuant to the Single Audit Act Amendments of 1996 and OMB Circular A-133, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the state and federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act Amendments of 1996 and OMB Circular A-133 establish criteria to be used in defining major federal financial assistance programs. Major programs for the City are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in OMB Circular A-133. Programs with similar requirements may be grouped into a cluster for testing purposes. Reporting Entity The reporting entity is fully described in the notes to the basic financial statements. Additionally, the Schedule includes all federal programs administered by the City for the year ended June 30, 2012. Revenue and Expenditure Recognition The receipt and expenditure of federal awards are accounted for under the modified accrual basis of accounting. Revenues are recorded as received in cash or on the accrual basis where measurable and available. Expenditures are recorded when the liability is incurred. ---PAGE BREAK--- - 9 - CITY OF WOODBURN SUMMARY OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 SECTION I - SUMMARY OF AUDITOR’S RESULTS Financial Statements Type of auditor’s opinion issued: Unqualified Internal control reporting: • Material weakness(es) identified? No • Significant deficiencies identified that are not considered to be material weaknesses? Yes Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: • Material weakness(es) identified? No • Significant deficiencies identified that are not considered to be material weaknesses? Yes Type of auditor’s report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? Yes Identification of major program: CFDA Numbers Name of Federal Program or Cluster 20.509 Rural Area Transit 20.513, 20.516, 20.521 Transit Services Program Cluster Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? No FINANCIAL STATEMENT FINDINGS Finding 2012-01: Inadequate and untimely review of GL transactions and account balances Condition: The general ledger contained asset and liability account balances that were not reconciled properly. Criteria: General ledger asset and liability account balances should be reviewed and reconciled in a timely manner. Cause: The failure to reconcile these accounts was due primarily to turnover in the finance department and workload constraints. Effect: Some general ledger asset and liability account balances were not properly stated. Recommendation: Management should review and reconcile general ledger account balances in a timely manner. Management response: Finance department staff has stabilized, and additional resources will be devoted to general ledger maintenance and reconciliation. Future balances will be reviewed and reconciled in a timely manner. ---PAGE BREAK--- - 10 - CITY OF WOODBURN SUMMARY OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2012-02: Lack of documented approval of transactions for CFDA#20.509 Rural Area Transit and CFDA# 20.513, 20.516, 20.521 Transit Services Program Cluster Condition: Lack of documented approval for some program transactions. Criteria: Some expenditures charged to the program did not have documented approval. None of the transactions reviewed were improperly charged to the grant. Cause: The City currently does not have a policy in place to document approval on reoccurring invoices or requests that are originated from management. Effect: Unallowable activities or costs may be charged and not detected. Recommendation: We recommend that all expenditures have documented approval on invoices. Management response: As of June 2012, staff was instructed to require management approval of all expenditures. Prior to that point, certain transactions, such as mileage reimbursements were not approved on the face of the payment request, though management approval was implied as they were prepared and submitted by transit management personnel. Finding 2012-03: Lack of documented allocation methodology for intergovernmental charges for CFDA#20.509 Rural Area Transit and CFDA# 20.513, 20.516, 20.521 Transit Services Program Cluster Condition: Lack of documented methodology for intergovernmental charges. Criteria: The City was unable to produce documentation for the allocation methodology of intergovernmental charges for the information services department. Cause: The City has had significant turnover in the finance department and records have not been properly maintained. Effect: We are unable to determine if the charges are in accordance with OMB Circular A-87 or that they are allowable activities. Recommendation: We recommend the City appropriately document their allocation methodology of intergovernmental charges. Management response: With the stabilization of finance department staff, additional resources are being allocated to cost allocation methodology and documentation. Methodology has been established as part of the budget process, but discrete documentation for Federal purposes has not been prepared. Formal methodology documentation will be established prior to completion of the next review. ---PAGE BREAK--- - 11 - CITY OF WOODBURN SUMMARY OF FINDINGS AND QUESTIONED COSTS – PRIOR YEAR YEAR ENDED JUNE 30, 2012 PRIOR YEAR FINANCIAL STATEMENT FINDINGS Finding 2011-01: Inadequate capital asset accounting records Condition: The capital asset records contained inconsistencies between management’s summary of assets (depreciable and non-depreciable) and accumulated depreciation for governmental and business-type assets and the underlying detail (prepared on a by fund and by asset basis). Criteria: Capital asset detail records are not being reconciled to capital asset summaries. Cause: Sufficient time was not available for management to reconcile capital assets. Effect: Inaccurate records could cause the presentation of capital assets (and accumulated depreciation) by opinion unit to be misstated. Recommendation: We recommend that management review the capital asset detail and reconcile it to the capital asset summaries. Management response: Finance staff will review the capital asset records in detail and correct any discrepancies, errors, or omissions prior to FY2012 fieldwork. Current year update: Management implemented appropriate procedures as of June 30, 2012. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2011-03 Timeliness of Completion of Single Audit under OMB Circular A-133 Condition: The City did not file their 2011 Single Audit timely. Criteria: To comply with federal requirements Single Audits must be completed and submitted to the Federal Audit Clearinghouse within 9 months following year-end. Cause: There was turnover in staff responsible for compiling financial statement audit documentation and difficulties arose in reconciling general ledger account balances in preparation for the audit. Effect: The City is not in compliance with reporting requirements under OMB Circular A-133. Recommendation: We recommend that audits be performed and submitted on a timely basis. Management Response: Due to the late completion of the FY2010 audit and the turnover of the Finance Director, the audit fieldwork was not scheduled and completed timely. Management will ensure audits are completed in a timely manner going forward. Current year update: Management has complied with this requirement for the 2012 fiscal year.