HomeMy WebLinkAbout2021 ACFR
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2021
Prepared by:
Finance Department
Richa Sigdel-Director
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
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TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ………………………………………………………………………………. 1
Organizational Chart ………………………………………………………………………………. 9
Directory of City Officials and Leadership Team………………………………………………….. 10
FINANCIAL SECTION
Independent Auditor’s Report ………………………………………………………………...…… 12
Management’s Discussion and Analysis ………………………………………………………….. 15
Basic Financial Statements
Government Wide Financial Statements
Statement of Net Position…………………………………………............................................ 30
Statement of Activities…………………………………………………………………………. 32
Fund Financial Statements
Balance Sheet – Governmental Funds ......................................................................................... 33
Reconciliation of Balance sheet to Statemen of Net Position……………………………………… 34
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds.. 35
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balance of
Governmental Funds to the Statement of Net Activities.……..…………….…………..…… 36
Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual-
General Fund…………………………………………………………………………………. 37
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual
Major ARPA Fund...…………………….……………………………………………………. 38
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual
Major Construction Fund.…………………….……………………………………………… 38
Statement of Net Position - Proprietary Fund…………………….…………………………….. 39
Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds………….. 41
Statement of Cash Flows – Proprietary Fund ………………………………………………….. 42
Statement of Net Position – Fiduciary Funds…………………………………………………… 43
Statement of Changes in Fiduciary Net Position – Fiduciary Funds.……………………..……… 43
Notes to the Financial Statements….…………………….…………………………….………… 44
Required Supplementary Information
Schedule of Changes in Net OPEB Liability and Related Ratios - Firemen’s OPEB Plan . ….. 103
Schedule of Investment Returns – Fireman’s OPEB Plan.. ……………………………………. 103
Schedule of City Contributions - LEOFF 1 OPEB …………….…..…………………………. 104
Schedule of Changes in Net OPEB Liability and Related Ratios – LEOFF 1 OPEB ………… 104
Schedule of Changes in Net Pension Liability and Related Ratios – Fire Pension Plan ....……. 105
Schedule of Employer Contributions – Fire Pension Plan …………………………….………. 106
Schedule of Investment Returns – Fire Pension Plan …………………………………………. 106
Schedule of Proportionate Share of the Net Pension Liability - All State Plans…………….… 107
Schedule of Employer Contributions - All State Plans………………………………………... 108
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
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Combining and Individual Fund Statements
Combining Balance Sheet – Nonmajor Other Governmental Funds ………………………….. 113
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Other Governmental Funds ……………………………………………………….. 114
Combining Balance Sheet – Nonmajor Special Revenue Funds …………………………….. 115
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Special Revenue Funds……………………………………………………………. 120
TABLE OF CONTENTS (continued)
Combining Balance Sheet – Nonmajor Debt Service Funds…….…………………………….. 125
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Debt Service Funds…………………………………………………………….... 125
Combining Balance Sheet – Nonmajor Permanent Funds…….…………………………….. 126
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Permanent Funds…………………………………………………………….... 126
Combining Statement of Net Position – Nonmajor Internal Service Funds…………………… 128
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Nonmajor Internal Service Funds…..………..……………………………………………… 129
Combining Statement of Cash Flows – Nonmajor Internal Service Funds................................ 130
Combining Statement of Net Position– Fiduciary Funds……………………………..………. 132
Combining Statement of Changes to Net Position – Fiduciary Funds…...…………..……….. 132
Combining Statement Assets and Liabilities – Custodial Funds…..………………………… 133
Combining Statement of Changes to Net Position – Custodial…...…………..……….. 133
STATISTICAL SECTION
Financial Trends
Net Position by Component……………………............................................................................ 136
Changes in Net Position……….................................................................................................... 137
Governmental Activities Tax Revenues by Source…………………..………..………………… 139
Fund Balances of Governmental Funds………………….............................................................. 140
Changes in Fund Balances of Governmental Funds…………………........................................... 141
Revenue Capacity
Assessed Value of Taxable Property .......................................................................................... 142
B&O Taxes by Type ……………………................................................................................... 142
Property Tax Rates ....................................................................................................................... 143
Taxable Retail Sales ………………………………..……………………................................... 143
Principal Property Taxpayers…………………………….………………................................... 144
Principal B&O Taxpayers …………………………….…………………..............……………. 145
Top Ten Industries that Generate Sales Tax…………………………………………………….. 145
Property Tax Levies and Collections…………………................................................................. 146
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
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Debt Capacity
Ratios of Outstanding Debt by Type/Ratio of General Bonded Debt Outstanding....................... 146
Ratios of General Bond Debt Outstanding and Bonded per Capita……………………………... 147
Legal Debt Margin……………………………............................................................................. 148
Direct and Overlapping Governmental Activities Debt……………………………………...... 149
Waterworks Utility Debt Service Coverage……........................................................................... 150
Demographic and Economic Information
Demographic and Economic Statistics.......................................................................................... 151
Principal Employers…………………………………………...................................................... 152
Non-Agriculture Wage and Salary Workers…………………………………………………….. 153
Building Permits………………………………………………………………………………… 153
TABLE OF CONTENTS (continued)
Operating Information
Full Time Equivalent City Government Employees by Function…………………………........ 154
Operating Indicators by Function………………………………………………………………. 155
Building Permits………………………………………………………………………………… 156
Capital used by Function……………………………………………………………………….. 157
Waterworks Utility Customers …………………………………..…..…………………………. 158
Waterworks Utility Rates………………………………………………….……………………. 159
STATE REQUIRED SCHEDULES
Schedule 9 – Schedule of Long-Term Liabilities……………………………….………..……… 162
Schedule 15 – Schedule of State Financial Assistance…………………………………..………….. 163
Schedule 16 – Schedule of Expenditures of Federal Awards……………………………………….. 164
Notes to Schedule of Expenditures of Federal Awards……………………………..…………. ….. 165
Schedule 17 – Limitation on Public Works Projects performed by employees…………………… 166
Schedule 19 - Labor Relations Consultants………………………………………………………… 167
Schedule 21 – Local Government Risk Assumption………………………………………………. 168
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
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City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Date: ____
Honorable Mayor, Members of the City Council, Pasco Community Members and interested
parties,
We are pleased to submit the Annual Comprehensive Financial Report of the City of Pasco for the
year ending December 31, 2021. This report is prepared and published annually to comply with
State law (RCW 43.09.230).
This report consists of management’s representation concerning the finances of the City of Pasco
(City). Consequently, management assumes full responsibility for the completeness and reliability
of the information within the report. To provide a reasonable basis for making these
representations, management has established a comprehensive internal control framework. This
framework is designed to protect the government’s assets from loss, theft, or misuse. It also serves
to support the compilation of reliable information for the preparation of the City’s financial
statements in conformity with generally accepted accounting principles (GAAP). Because the cost
of internal controls should not outweigh the benefits, the City’s comprehensive framework of
internal controls are designed to provide reasonable, rather than absolute, assurance that the
financial statements will be free from material misstatement. As management, we assert that, to
the best of our knowledge and belief, this financial report is complete and reliable in all material
respects.
The City’s financial statements have been audited by the Office of the State Auditor (SAO). The
responsibility of the SAO is to plan and perform an audit to obtain reasonable assurance that the
financial statements of the City are free from material misstatement. The independent audit
involves examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation.
The City’s financial statements for the year ended December 31, 2021, have been audited by the
State’s Auditor’s Office (SAO). The independent auditor concluded, based on audit testing and
examination, that…..
The independent audit of the financial statements of the City was part of a broader, federally
mandated Single Audit. The Single Audit process is designed to meet the requirements of federal
grantor agencies and is performed when the City has expended federal grant funds in excess of
$750,000 in a given fiscal year. The standards governing Single Audit engagements require the
independent auditor to report not only on the fair presentation of the financial statements, but also
on the audited government’s internal controls and compliance with legal requirements, with special
emphasis on internal controls and legal requirements involving the administration of federal
awards. The City’s Single Audit report is issued separately and available upon request.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
GAAP requires that management provide a narrative introduction, overview and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). The City of Pasco’s MD&A can be found immediately following the report of the
independent auditors. This letter of transmittal complements the MD&A and the two should be
read in concert.
PROFILE OF THE CITY OF PASCO
The City of Pasco is located in Franklin County, in south-central Washington. This area is also
known as the Mid-Columbia region of the Pacific Northwest. The City encompasses
approximately 36.5 square miles, serves as the Franklin County seat, and is the largest City in the
County. Pasco, along with the neighboring cities of Richland and Kennewick, which are in Benton
County, make up the Tri-Cities Metropolitan Area, the fourth largest urban area in Washington
State. As of 2021, the combined population of Benton and Franklin Counties is approximately
307,750.
Pasco has experienced rapid residential growth in the 21st century, growing from a population of
32,066 in 2000 to an estimated 78,700 in 2021. The City’s population is projected to exceed
124,000 in the next 20 years, and is rated among the best places to invest, live, and seek
employment.
Established in 1884, the City was incorporated in 1891 and has operated under State laws
applicable to a code city with a Council/Manager form of government since May 5, 1964. The City
Manager is appointed by the City Council and is responsible to the City Council for the proper
administration of all City operations. The City Council is comprised of seven members, six elected
by district, one elected at-large, with one of the seven selected by the members to serve as Mayor
for a two-year term. Council members are part-time elected officials who exercise legislative
authority and determine matters of policy for the City.
The City is a general-purpose government and provides the full range of municipal services
authorized by State law. These services include police and fire protection, ambulance service,
parks and recreation activities, street maintenance and construction, current and long-range
planning and zoning, and general administrative services. The City owns and operates a
water/sewer system and a cemetery. Also located in the City are a championship golf course that
is operated by Sun Willow Pasco Golf lease agreement and a baseball stadium that is leased to a
Class A minor league baseball team, the Dust Devils, who are affiliated with the Los Angeles
Angels. Both golf course and baseball facility operations lend themselves to unique and specialized
management practices. Therefore, to best steward the City’s assets and ensure the highest quality
of service the City has determined to enter into leases.
The City adopted its first biennial budget in 2018 for 2019-2020 biennium. The Council is required
to adopt an initial budget for the biennium no later than December 31st preceding the beginning of
the fiscal year on January 1st. The City of Pasco maintains budgetary controls to ensure compliance
with legal provisions embodied in the budget. All activities are appropriated through the budget
process and published in the City’s Budget document. The City Council must adopt an ordinance
to increase or decrease total appropriations in a Fund.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
In 2021, the City received the Distinguished Budget Presentation Award for a second budgeting
period in a row from GFOA for its 2021/2022 biennial budget document. To qualify for the
Distinguished Budget Presentation Award, the City’s budget document was judged to be
proficient in several categories, including as a policy document, a financial plan, an operation
guide, and a communications device.
LOCAL ECONOMY
The Tri-Cities metropolitan planning area (MPO) is the fastest growing MPO in the state of
Washington. The current population estimate over 307,750 making it the 3rd largest in Washington
State. Franklin County accounts for 98,350 of the total Tri-Cities area population. A once small,
quiet Central Washington town on the banks of the Columbia, Pasco has experienced rapid growth
over a prolonged period of time that has transformed the City into a dynamic and vibrant
community of over 78,000 people; well within the top 20 most populated cities in the State and
growing at consistent rate of 3% in the last decade. The Pasco of today is a regional hub of
commerce with a diverse population, and quickly rising education levels and household incomes.
Between 2010 and 2020, median household income for Franklin County residents has increased
from $53,355 in 2010 to $69,072 in 2020. When adjusted for inflation, the percentage increase is
8.7%. The City’s economy is largely based on agriculture and related food processing,
manufacturing, retail, and transportation, both as a source of service and the as a complement to
other business success. Pasco will be experiencing an even more rapid rate of expansion with
respect to its commercial and industrial base, with development of its Broadmoor Area, which will
significantly expand the retail footprint at the City. In the Broadmoor Area, a well-known mass
market retailer is slated to start construction in the coming year. This location is centrally located
in the Tri-Cities and close to transportation infrastructure making it a regionally beneficial site.
Additionally, across town in the already significant industrial zone of town the construction of two
one-million-plus square feet Amazon fulfillment centers is underway. An existing processor,
Reser’s Fine Foods, is expanding its business, building a facility more than twice its existing
footprint. Darigold, an addition to the local industrial complex, is starting construction on a $500
million facility to build the largest protein and butter plant of its type in North America. Local
Bounti, a Montana startup that raises lettuce and herbs in high-tech greenhouses, has plans to build
a $40 million complex of greenhouses in Pasco to supply the growing community in the region
with fresh, local, and organic produce.
Regionally, the Tri-Cities economy is anchored in agribusiness, food processing, manufacturing,
research and development, specialized services, production technology, government, and
healthcare. In 2021, these economic anchors continued to provide stability while also contributing
via growth to economically benefit both the City and the region. The impending arrival of the new
partners mentioned above coupled with the expansion of existing businesses will change the local
economy, adding diversity and, thereby, strength.
Agribusiness
The area produces bountiful harvests with a rich variety of crops. Climate, soil, experience, and
sophisticated technology all contribute to this outcome. Pasco is among the most important
production centers for tree fruit, wine grapes, sweet corn, potatoes and hay in the state. With easy
access to diverse and high-quality products, supporting infrastructure, and a robust transportation
network, food processing has become a major factor in the area’s economy.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Pasco’s Process Water Reuse Facility (PWRF) was designed and developed in 1995 specifically
for the agricultural food processing industry. The PWRF provides participating processors the
unique opportunity of treating and disposing their nearly 1 billion gallons of wastewater annually
through land application via crop irrigation rather than through the City’s municipal wastewater
treatment plant (WWTP).
The PWRF was developed jointly by the City of Pasco, Port of Pasco, and Franklin County. The
system receives processor wash water from two pump stations located in the Foster Wells area and
the Columbia East/Kahlotus Hwy area. During winter months when irrigation is not allowed, up
to 150 million gallons of processor wastewater is stored at the PWRF in plastic lined ponds until
spring.
Since 1995, the PWRF operation has expanded to serve several large food processors including
Simplot, Pasco Processing, Reser’s Fine Foods, Twin City Foods, and Freeze Pack. In 2022,
another agricultural food processor, Grimmway, will for the first time since 2014 have their
agricultural wastewater pumped to the PWRF for treatment rather than going to the municipal
WWTP. The City is currently working to expand capacity of the PWRF to allow current
processors to increase production and accommodate wastewater from new processors. This
expansion will double the capacity of the PWRF to 2 billion gallons annually of agricultural and
dairy wastewater. As mentioned above, in 2021, Reser’s Fine Foods embarked on production
expansion by the addition of a 250,000-square foot site. A new-to-the-area Darigold butter and
protein powder plant scheduled to come online in 2024 will be served by improvements at the
PWRF. Local Bounti’s initial plan entails the completion of a greenhouse complex of 1.2 million
square feet.
Government
A major catalyst for the growth of the Tri-Cities in the 1970’s was the expansion of the Hanford
Nuclear Reservation, which has evolved into one of the largest nuclear industrial centers in the
United States. Located in Benton County, the Hanford Reservation encompasses approximately
560 square miles and contains various nuclear and nuclear-related projects, serving as a national
energy resource center. Today, the focus is on energy research, environmental remediation/waste
management and related technology. A 40-year Tri-Party Agreement was signed by the U.S.
Department of Energy, the State and the U.S. Environmental Protection Agency, which established
a plan to “cleanup” the environment of the Hanford Reservation. The plan is intended to improve
radioactive and chemical waste disposal and to manage future waste generated at the site. The
Department of Energy’s Pacific Northwest National Laboratory, located in Richland, is only one
of ten such facilities. Its focus is on using science and technology to meet national priorities. It has
teamed with several local economic development partners to develop and market the region’s first
technology-based research area known as the Tri-Cities Research District. Currently, the
2,875-acre District’s 80+ tenants employ more than 11,000 professional, technical and
administrative staff, many of whom reside in Pasco.
Tourism
The community has diligently focused on diversifying its economic portfolio, including a
commitment to tourism. The City of Pasco in coordination with its regional partners have created
a Tourism Promotion Area. Associated fees are assessed and utilized to promote the region to
potential visitors. Visit Tri-Cities, a non-profit destination-focused marketing organization,
provides tourism-related marketing and management services for the City of Pasco and its regional
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
partners. This proactive effort has helped the City highlight its many attractive features to create a
economically and culturally vibrant community.
In 1994, a professional minor league baseball stadium was built. The stadium seats 4,000 and
includes a parking lot for 1,000 automobiles. The stadium is currently leased to Northwest Baseball
Ventures I, LLC, owners of the Tri-City Dust Devils, a single A affiliate of the Los Angeles Angels
team of Major League Baseball. Since the move to the higher “High-A” league in 2021, the Dust
Devils have competed in 76 games, 38 games at Gesa Stadium, and have a ten-year contract to
remain in the community.
In 1995, The HAPO Center, formerly called the TRAC, was built through a joint venture between
the City of Pasco and Franklin County. The HAPO Center has two large exhibition halls, meeting
rooms, a concession area, and administrative offices. Additionally, an adjoining 15-field soccer
complex occupying 45 acres was developed in 1995. The complex is the state’s second largest and
has become a popular location for tournament play. In 2000, the City completed construction of a
$3.5 million six field softball complex in the TRAC area. The push for tourism has been fueled by
the growing popularity of Columbia Valley region wines. Washington State has a robust $4.8
billion wine industry, ranking it second nationally for premium wine production. Known as the
“Heart of Washington Wine Country”, the Columbia Valley region is home to over 200 wineries
within a 60-mile radius, with 50,000 acres of vineyards; making it bigger in area than Napa Valley.
Visitors are coming to the region from all over the country and world to enjoy premium wines,
food, and weather. Constricted travel related to the COVID-19 pandemic in 2020 had significantly
negative impacts to tourism. For 2021, however, a reporting of hospitality related final numbers
reflect a significant return toward full recovery. The 2021 trend includes a 12% increase in hotel
revenue for the Tri-Cities region and a 21% increase in Revenue Per Average Room, a common
industry metric. In 2021, the Hotel Motel tax distributions to the City were $332,854. This revenue
is directly related to the number of hotel room rentals. The 2021 tax total was 2.2 times greater
than the same figure in 2020 and slightly higher than the 2019 tax revenues.
The Pasco Public Facilities District is preparing for its next phase as an organization with the
construction of an Aquatic Center. A ballot initiative was presented to Pasco voters in April 2022.
As of the writing of this document the ballot initiative is affirmed and awaiting vote certification.
The successful vote results in the collection of an additional 2/10th of one percent of sales and use
tax as of January 2023 to support debt service on the $40 million project. Supported by the approval
by voters the availability of an Aquatic Center will allow Pasco to attract new visitors to the City,
further cementing its growing reputation as an attractive recreational destination.
Healthcare
Lourdes Health Network is located in Pasco and is the fourth largest employer in Franklin County,
with approximately 1000 employees. In 2016, the Hospital celebrated 100 years of responding to
the healthcare needs of the community. In 2018, the 102-year-old institution was purchased by
Tennessee based RCCH HealthCare Partners, which subsequently merged with LifePoint Health.
It now has 10 locations, housing 24 physician and specialty clinics. Lourdes Counseling Center is
the largest and only inpatient and outpatient behavioral health service provider in Southeastern
Washington.
Trios Health, formerly known as Kennewick General Hospital, first started in 1952 as a community
driven effort to establish a Kennewick-based hospital. The organization operates two teaching
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
hospitals and a network of outpatient specialty practices and services, employing more than 1,200
workers. LifePoint Health System now manages Trios Health, as well as Lourdes Health Network.
Kadlec, a regional medical center serving the community since 1944, also serves the region. It is
the second largest employer in the Tri-Cities area, employing over 3,800 workers.
In December of 2021, the commissioners of Franklin County approved a sales and use tax increase
of one-tenth of one percent. The County tax is one side of a bi-county effort with neighboring
Benton County to fund programs and services that respond to chemical dependency and mental
health treatment. The tax is effective April 1st of 2022.
Transportation and Other
Pasco is also the home of the region’s only international airport, as well as both train and bus
depots. Tri-Cities Airport is regional airport served by several airlines, with direct flights to nine
major US cities: Denver, Las Vegas, Burbank, Phoenix-Mesa, Minneapolis, Reno, Salt Lake City,
San Diego, San Francisco, and Seattle. The local Amtrak station and a Greyhound Bus Station is
located in Pasco, connecting the City to the rest of the country. Additional commercial
transportation is also accomplished through extensive barge traffic on the Columbia and Snake
rivers. Rail transport is provided by the BNSF Railway. The Trucking industry uses Interstate 182,
and to a lesser extent U.S. Route 395. This extensive and diversified transportation network has
attracted industrial processors and distribution centers to the area.
SUMMARY OF CURRENT AND FUTURE ECONOMIC OUTLOOK
The Benton-Franklin County area has experienced rapid and sustained growth which has
outdistanced the growth rates of both Washington State and the United States. This region’s
average growth since the 2010 is 2.9% per annum; comparatively Washington State and the United
States have experienced average growth rates of 1.3% and 0.7%, respectively, during this same
period. Based upon the change in population reported by the Office of Financial Management in
2021, Pasco’s increase ranks 4th highest in the State of Washington.
Pasco continues to attract a young, energetic and diverse workforce. At 29.7, the median age of
the City of Pasco resident is 8.8 years younger than the statewide average (38.5). Most of the City’s
labor force and household incomes are climbing closer to regional and statewide levels, making
Pasco an attractive place to start or relocate families and businesses. In 2021 a community survey
was conducted using the service of the National Research Center. The survey results reflect that
76% of respondents would recommend Pasco as a place to live and 79% plan to remain residents
of Pasco for the next 5 years.
Voters have continually approved school bonds to expand the areas to school system to
accommodate growth. The heavy investment in school infrastructure is indicative of the growth
Pasco has sustained and looks to accommodate in the future, as well as the area’s commitment to
providing a well-educated and technologically adept workforce capable of meeting the future
needs of regional, national, as well as international employers. Pasco School District had
accounted for $52,000,000 in commercial permits in 2019, whereas there were no permits issued
for schools in 2020 and 2021. Due to ongoing growth in population new schools are anticipated to
be built in near future. To this end, the School District is currently seeking stakeholder engagement
related to the planning for a 2023 bond election to provide funding for a new, and third,
comprehensive high school and a small innovative high school.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The City is also home to Columbia Basin College, which provides two-year and four-year degrees
to students in the region. The college held its first classes in 1955, and from the initial enrollment
of 272 students to more than 7,280 students today, it continues to meet the higher education needs
of the community. It started the operation of a student housing building, which provides 45 units
to house 126 students: with the goal of building 375 single, double, and quad units in the future.
In 2021, the college was the fourth largest employer in Franklin County with over 651 employees.
The college is rank in the top 20% of community colleges in Washington State.
In 2021, despite the concerns surround the pandemic, the local economy was strong. The stability
of the economy resulted in an unemployment rate in Franklin County of 5.5%. The prior year’s
rate was 8.1%. Historically, the County’s 3-year average unemployment rate has been 7.7%.
Permitting activity, representative of the attractiveness of a community for both residential and
commercial investment, increased substantially from 2020 to 2021. The percentage of permit value
increase was 102% for all permit types. By type of permit, the percentage changes are commercial
(256%), industrial (235%) and residential (-20%). The City issued 2,860 building permits in 2021.
While this count is a decrease of 2.3% from the previous year, the total value of the permits issued
increased by 102%, or $291 million. This represents approximately $576 million in construction
value. Of the total permits, 367 were for new single-family residences, which equates to $122
million in construction value. The average value of a new home in Tri-Cities metropolitan area
where Pasco is located was approximately $407,600 in 2021, an increase of 22% over the prior
year. The strength of the City’s growing economy is confirmed by the Standard & Poor’s rating of
the City’s 2019 General Obligation, and most recently, through their rating of the City’s 2020
Utility bond, issue as AA-/Stable. The City’s ability to maintain its rating during a time of
unprecedented economic certainty and volatility due to the COVID-19 pandemic is reflective of
the City’s bright long and short-term economic prospects.
Businesses have continued making a significant investment in Pasco through the addition of new
or improvements to existing infrastructure. In total, the City received more than $453M investment
in construction for commercial and industrial purposes in 2021, an increase of $321M over the
previous year. Significant commercial improvement in 2021 involved the initiation of construction
of two Amazon, Inc. distribution centers, each more than one million square feet in size that are
anticipated to employ more than 1,500 people. Across town from the Amazon construction sites,
the City is also working with landowners on developing the Broadmoor area, a location central to
the Tri-Cities region and a blank space ready for development. The City extended sewer services
to the area in the summer of 2019 and has completed the environmental review process for the
master planned development of a two-thousand-acre area encompassing what is known as the
Broadmoor Area. The development plan envisions the area to include a combination of homes,
condominiums, apartments, offices, stores, mixed-use and a transportation system of bike/ped
trails, transit and boulevards focused on connectivity and walkability. In 2021, the City made plans
that will address the interchange with Interstate 182, as well as other transportation related
improvements, to allow for increased capacity that will be necessary as development occurs. Major
retailers, like Costco, are expected to be serving the residents of Pasco and its neighboring areas.
The Road 68 Corridor, spanning both north and south sides of Interstate I-182 continues to
experience rapid development from both local and national businesses. Today, the corridor is home
to over 2,250 jobs, representing an increase of 62% since 2015. Supporting the business growth
has been an increase in residential development along the corridor. The City expects to
accommodate the addition of a number of multifamily project along the corridor in the future.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
A project many years in the making, the $37 million Lewis Street Overpass started construction in
August of 2021. The improvements include construction of a 625-foot 4-span concrete overpass
over the BNSF railway yard and a 70-foot single span structure over 1st Ave. The project is
supported by local, state and federal fund. The new overpass will allow for the retirement of an
aged underpass built in 1937. The addition of the Lewis Street Overpass provides a crucial and
safety minded link between the Pasco Central Business District and eastern Pasco.
Pasco is a city in motion and poised for dynamic change. In light of both private and public
investment as well as the planning efforts taking place today, exciting and community benefiting
results are expected for the future. Furthermore, the conversion of existing commercial, industrial,
educational and community amenities will shape the culture of Pasco and serves to allow Citizens
to pursue a high quality of life.
ACKNOWLEDGMENTS
The preparation of this report would not have been possible without the efficient and dedicated
service of the entire Finance Department, as well as the cooperation and assistance provided by
other divisions and departments. We would like to express our appreciation to all those who
assisted and contributed to the preparation of this report.
In closing, we would like to thank the members of the City Council for their leadership and support
in planning and conducting the financial affairs of the City in a responsible and enterprising
manner.
Respectfully submitted,
David Zabell, City Manager
David Zabell, City Manager
Richa Sigdel, Finance Director
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City of Pasco Organizational Chart
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City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
MANAGEMENTS’ DISCUSSION AND ANALYSIS
As management of the City of Pasco, we offer readers of the financial statements this narrative
overview and analysis of the financial activities of the City of Pasco for the fiscal year ended
December 31, 2021. We encourage readers to consider the information that we have furnished in
our letter of transmittal as well.
Financial Highlights
• The assets and deferred outflows of the City of Pasco exceeded liabilities and deferred inflows,
or net position, at the close of December 31, 2021 by $597,565,374. Of this amount, $49,394,320
may be used to meet the government’s ongoing obligations to citizens and creditors. While not
formally restricted, the City has assigned $1,230,430 of the unrestricted balance of the General
fund toward the future support of a new Community Center project.
• The City of Pasco’s total net position improved by $52,435,916. Approximately 52% of the
increase in net position is due to increases in governmental-type activities and 48% is due to
business-type activities. The City’s net investment in capital improved by $9,212,520 as a
reflection of improvements to City facilities and infrastructure. Restricted net position increased
substantially in 2021. Much of the reflected increase is the result of an increase in our pension
related activity as reported by the State of Washington. This entry represents an accrual -based
recognition of changes in the value of investments held for deferred compensation programs. In
2021, Pasco was the recipient of American Rescue Plan Act Funds, totaling $8,246,797. As of
year-end, $5,742,080 remains unearned, as it has not been associated and used toward a
qualifying purpose. Unrestricted net position increased as compared to the end of 2020 by
$13,188,737.
• Expenses were $28,525,555 greater than the program revenues generated for governmental
activities. Conversely, program revenues exceeded expenses by $19,921,912 for business-type
activities.
• As of the close of the current fiscal year, the City of Pasco’s governmental funds reported
combined ending fund balances of $85,354,065. This represents an increase of $8,422,105 in
comparison with the prior year.
• At the end of the current fiscal year, the unrestricted, unassigned fund balance for the City’s
General Fund was $21,717,650 which also represents 39% of total General Fund expenditures.
This change is a decrease of $4,156,165 as compared to the prior year balance. General Fund
revenues increased 16.58% over 2020 totals. Most of this increase was attributable to increase
collection of tax revenues (67%), improvements in charges for services (15%), licenses and
permit fees (11%) and intergovernmental receipts (9%). Other small and miscellaneous revenue
categories decreased from 2020 levels (-2%). Committed fund balance reported in City’s
General Fund was $407,344 which consisted of landfill claims. The City holds $1,230,430 of
proceeds from the 2016 sale of senior center property as assigned fund balance for the purpose
of construction of a planned community/senior center. Finally, restricted fund balance in the
General Fund was $6,707,483. Slightly over half of these funds represent unspent debt proceeds
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
from City’s 2019 LTGO funds that are slated to support the construction of a new animal shelter.
The funds are expected to be fully expended by end of 2023.
• The City of Pasco’s total net investments in capital assets increased by $9,212,530 during the
year ended December 31, 2021. Majority of the increase can be attributed to investment made in
the City’s infrastructure including parks, facilities, streets, and utility infrastructure. 39% of the
increase in net capital assets are contributable to governmental activities.
• At the end of the December 31, 2021, city’s outstanding debt increased by $7,433,494. Within
the governmental activities, total outstanding debt increased by $2,564,149. A HUD Section 108
Loan of $3,781,000 was attained for the improvement of a downtown farmers market and related
park. Within business-type activities, total outstanding debt increased by $4,869,345. The
Water/Sewer Fund, a business-type activity, was the recipient of three loans that support capital
improvements for the benefit of the utilities. The total issuance value for the Department of
Ecology loans equals $7,649,716. Also received was one Public Works Loan in the amount of
$324,411.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Pasco’s basic
financial statements. The financial statements are comprised of three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide Financial Statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Pasco’s finances in a manner
similar to a private-sector business.
The Statement of Net Position presents information on all of the City of Pasco’s assets, liabilities,
and deferred inflows/outflows with the difference between the two reported as net position. Over
time increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City of Pasco is improving or deteriorating.
The Statement of Activities presents information showing how the government’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
The government-wide financial statements distinguish functions of the City of Pasco that are
principally supported by taxes and intergovernmental revenues (Governmental Activities) from
activities that are supported by fees and charges (Business-Type Activities). The governmental
activities of the City of Pasco include general government, public safety, transportation, natural
and economic environment support, and culture and community activities. The business -type
activities of the City of Pasco include water/sewer (which cover water, sewer, irrigation, process-
reuse and storm water activities), equipment maintenance and equipment replacement services.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Fund Financial Statements. A fund is a grouping of related accounts that are used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Pasco, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. The funds of the City of Pasco can be divided
into the following categories: governmental, proprietary, permanent, fiduciary and custodial funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government’s
near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statements of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City of Pasco maintains thirty (30) individual governmental funds including the General
Fund. Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fund balances for the
General Fund, which is a major fund as defined by the Governmental Accounting Standards
Board (GASB). This number of governmental funds represents the addition of a special revenue
fund to account for all activities related to the Coronavirus State and Local Fiscal Recovery
Funds under the American Rescue Plan Act (ARPA) of 2021. In 2021, the General, ARPA, and
the Construction Funds were the only major governmental funds. The Ambulance Fund was
deemed a major fund in 2020 due to the receipt of the Ground Emergency Medical Transport
(GEMT) program revenues. The GEMT program, House Bill 2007, was passed during the 2015-
2016 legislative session. The related supplemental payments cover the funding gap between the
City’s actual cost per ambulance transport and the allowable amount received from the State of
Washington’s Apple Health (Medicaid) and any other sources of reimbursement. Based on the
implementation of the program, analysis of transports and amounts due to participants was
necessary causing a large, true-up type of reimbursement that was received in 2020. In 2021,
however, receipts are restricted to the current year’s activity. Therefore, the Ambulance Fund is
not eligible to be categorized as a major fund in this reporting period.
Data from the other funds are combined into a single, aggregate presentation. Individual fund data
for each of these non-major governmental funds is provided in the form of Combining Statements
elsewhere in this report.
The City of Pasco adopts a biennial appropriated budget for its General Fund. A budgetary
comparison statement has been provided for the General Fund to demonstrate compliance with
this budget. 2021 represents the first year of the biennial budget period.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Proprietary Funds. The City of Pasco maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City of Pasco uses an enterprise fund to account for
the water/sewer utility. An internal service fund is an accounting device used to accumulate and
allocate costs internally to the City of Pasco’s various functions. The City of Pasco uses internal
service funds to account for its equipment maintenance and replacement, central stores and
medical/dental insurance activities. As the central stores, medical/dental insurance and certain
equipment maintenance and replacement services predominately benefit governmental rather than
business-type functions, they have been included with governmental activities in the government-
wide financial statements. Data from the other two internal service funds (equipment maintenance
and equipment replacement of utility equipment) are combined into a single, aggregated
presentation in the basic proprietary fund financial statement.
Proprietary funds provide the same type of information as the government-wide financial
statements, as the measurement focus and basis of accounting are the same, only in more detail.
The enterprise fund financial statements provide separate information for the water/sewer fund.
Data from the other two internal service funds (equipment maintenance and equipment
replacement of utility equipment) are combined into a single, aggregated presentation in the basic
proprietary fund financial statements.
Permanent Funds. Permanent funds are used to account for resources gained for a specific
purpose in a protected manner. The corpus of the original receipt is deposited in the permanent
fund and unspendable. Instead, its purpose is to generate interest earnings and those interest
earnings are usable as a source of income for a specified purpose.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Generally, fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the City of
Pasco’s own programs.
Custodial Funds. A custodial fund is a type of fiduciary fund. The purpose of a custodial fund is
to report resources held by the City for the ultimate benefit of others, but not based on a pension,
other post-employment benefit, investment nor private purpose relationship. The activity of the
custodial funds does not reflect City activity and we are not administratively involved. Instead, we
account for the activity for the benefit of the controlling entity.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements.
Government-wide Overall Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the City of Pasco, the net position for governmental and business-type
activities at the close of 2021 was $597,565,374. Included in this total were adjustments for prior
period activity related to the government wide statement of net position presentation resulting in
an additional $1,352,420 decrease in reported ending net position. A discussion of these
adjustments can be found in Note 18, titled Prior Period Adjustments.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The largest portion of the City of Pasco’s net position $439,251,323 (74%) reflects its investment
in capital assets (e.g. buildings, machinery, equipment, infrastructure, construction in progress)
less any related outstanding debt used to acquire those assets. The City of Pasco uses these capital
assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City of Pasco’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
resources, since the capital assets themselves cannot be used to liquidate these liabilities.
$108,919,731 (18%) of the City’s net position represents resources that are subject to external
restrictions on how they may be used. Special revenue funds exist collect funding and expend
related receipts for specific purposes. As such the related net position is restricted for the given
purpose of the fund. One well known example is the Streets Fund. Any available net position is
restricted to be used solely for the benefit of the Streets Fund and related expenditures. The
remaining $49,394,320 (8%) of unrestricted net position may be used to meet the government’s
ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Pasco financial activity results in positive balances
in governmental and business-type activities of net position. The Pasco Public Facility District
(PPFD), a component unit of the City, reported a positive net position as of the end of 2021 of
$17,115 as the result of a grant from the City for interim financing for the District’s ballot initiative.
The positive net position is a reverse of the 2020 completion that reported a deficit balance of
$29,681. The PPFD is preparing for its next phase as an organization with the construction of an
Aquatic Center. A ballot initiative was presented to Pasco voters in April 2022. As of the writing
of this document the ballot initiative is affirmed and awaiting vote certification. The successful
vote will result in the collection of an additional 2/10th of one percent of sales and use tax to support
debt service on the $40 million project.
As mentioned in the financial highlights, the City’s net position increased by $52,435,916 during
the current fiscal year. Restricted cash and receivables, largely in the form of grant or loan
proceeds, were a substantial contributor to the positive increase in fund balance. Some of this
activity ultimately is reflected in the improvement of net investment in capital. Charges for services
increased a small amount as programs that were cancelled or severely hampered by the pandemic
2021 2020 2021 2020 2021 2020
NonCapital assets 158,154,513$ 116,565,630$ 71,776,461$ 55,307,673$ 229,930,974$ 171,873,303$
Capital assets 292,327,632 280,610,030 233,733,560 216,992,364 526,061,192 497,602,394
Total assets 450,482,145 397,175,660 305,510,021 272,300,037 755,992,166 669,475,697
Total of deferred outflows of resources 3,750,219 2,739,580 428,413 414,408 4,178,632 3,153,988
Current liabilities 11,201,197 10,057,773 8,072,038 6,695,964 19,273,235 16,753,737
Noncurrent liabilities 42,140,520 44,212,096 62,642,432 58,738,596 104,782,952 102,950,692
Total liabilities 53,341,717 54,269,869 70,714,470 65,434,560 124,056,187 119,704,429
Total deferred inflows of resources 35,333,187 7,420,670 3,216,050 375,127 38,549,237 7,795,797
Net position:
Net investment in capital assets 266,042,053 262,403,197 173,209,270 167,635,596 439,251,323 430,038,793
Restricted 83,436,971 53,973,154 25,482,760 24,911,929 108,919,731 78,885,083
Unrestricted 16,078,436 21,848,350 33,315,884 14,357,233 49,394,320 36,205,583
Total net position 365,557,460$ 338,224,701$ 232,007,914$ 206,904,758$ 597,565,374$ 545,129,459$
City of Pasco's Net Position
Governmental Activities Business-Type Activities Total Primary Government
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
were returned to near full operation in 2021. Grant revenue, both operating and capital, decreased
in 2021. Of this decrease, capital related activity was the primary cause. The City, with the
assistance of granting agencies, is investing heavily in capital projects. As such any related grant
revenue is recognized as project milestones are met. Therefore, the related grant revenues rise and
fall in relationship to the timing of project completion. Tax revenues were 29% higher in 2021 as
compared to 2020. While the increase was spread across all tax types, primarily sales and excise
tax revenues increased. Government wide, the operating expenses of the city decreased in 2021.
A significant impact on government wide expenses is the recognition of pension related accrual
entries. Substantially all the City’s full-time and qualifying part-time employees are in one
members of Washington State Department of Retirement Systems (DRS) pension plans. Based on
the changes in employee composition, financial market-based earnings and the resulting actuarial
assumptions to the year end value of pension plan change. Respectively, the city’s share of each
plan value or liability can change. In 2021, a net pension asset was recorded. In 2020, a net pension
lability existed. The impact of this change significantly altered the expenses presented on the
government wide financial statement program where labor costs are reported. A majority of the
City’s labor cost are accounted for as general government and public safety type program expenses
both those categories of cost harbor the effect of the pension accrual. Note 14 reflects the aggregate
amount of the pension plans for year-end 2021.
Governmental Activities. Governmental activities increased the City of Pasco’s net position by
$27,332,759 after prior period adjustments. Key elements of the current year’s increase in net
position and changes relative to the prior year follow.
2021 2020 2021 2020 2021 2020
Revenues
Program revenues:
Charges for services 30,779,199$ 29,810,827$ 33,455,365$ 32,858,079$ 64,234,564$ 62,668,906$
Operating grants & contributions 7,354,516 11,221,281 58,810 282,000 7,413,326 11,503,281
Capital grants & contributions 15,694,053 29,526,743 12,835,598 6,809,743 28,529,651 36,336,486
General revenues:
Property taxes 11,496,330 11,066,380 11,496,330 11,066,380
Proceeds from bonds - - -
Other taxes 40,931,013 32,659,299 40,931,013 32,659,299
Investment income and miscellaneous 8,801,517 7,975,208 893,333 312,239 9,694,850 8,287,447
Total revenues 115,056,628 122,259,738 47,243,106 40,262,061 162,299,734 162,521,799
Program expenses:
General government 38,484,360 12,456,759 38,484,360 12,456,759
Public safety 4,741,972 40,014,643 4,741,972 40,014,643
Transportation 19,775,168 20,092,531 19,775,168 20,092,531
Economic environment 9,861,596 8,522,809 9,861,596 8,522,809
Culture and recreation 8,229,736 7,950,814 8,229,736 7,950,814
Interest on long term debt 1,260,491 1,109,732 1,260,491 1,109,732
Water 9,096,423 11,278,305 9,096,423 11,278,305
Irrigation 2,022,813 1,953,508 2,022,813 1,953,508
Sewer 8,993,973 8,945,634 8,993,973 8,945,634
Process water reuse 4,505,156 5,053,060 4,505,156 5,053,060
Storm water 1,809,494 1,355,818 1,809,494 1,355,818
Total expenses 82,353,323 90,147,288 26,427,859 28,586,325 108,781,182 118,733,613
32,703,305 32,112,450 20,815,247 11,675,736 53,518,552 43,788,186
Transfers (1,758,297) (1,233,333) 1,758,297 1,233,333 - -
I/F Loan (3,285,274) 3,285,274
Special Item: Gain on sale of asset 269,783 508,391 - (11,722) 269,783 496,669
Change in net position 27,929,517 31,387,508 25,858,818 12,897,347 53,788,335 44,284,855
Prior period adjustment (596,758) (2,703,146) (755,662) 1,187,194 (1,352,420) (1,515,952)
Total change in net position 27,332,759$ 28,684,362$ 25,103,156$ 14,084,541$ 52,435,915$ 42,768,903$
*See Note 5- and explanation of changes in useful lives.
Governmental Activities Business-Type Activities Total Primary Government
Increase in net position before transfers
City of Pasco's Net Position
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
• Program revenues decreased by approximately $16,700,000, largely contributable to a decrease
in capital grants and contributions as compared to the prior year. As noted previously, in 2021
City was the recipient of the American Rescue Plan Act grant. Of that receipt, a large portion,
$5,742,080, is unearned revenue. It will be reported as revenue in correlation with its use for
eligible efforts in the coming years.
• Tax revenues are the largest category of revenue within the governmental activities. In 2021, tax
receipts accounted for 45% of governmental activities revenues. The trend over the past many
years has been growth at a steady pace, reflecting a healthy and growing local economy. Growth
in 2021 was robust accounting for an additional $8,701,664 over 2020 or a percentage increase
of 20%.
Property tax revenue increased by 4% in 2021, or by approximately $430,000. This increase was
largely attributable to new construction completed in 2020 and subsequently added to the City’s
assessed valuation for 2021. The City banked its statutorily authorized increase in property tax
rate in 2021.
Sales tax revenue increased by 26% in 2021, or approximately $4,920,000. The City benefited
from sales tax generated by large construction projects. While construction related sales tax
proceeds are one-time in nature, the City anticipates a continuing atmosphere of economic
growth. This atmosphere is expected to not only create similar construction related tax proceeds
in future years, but also build a reliable and larger retail market base in the city li mits of Pasco.
This growing retail base will provide support for City services into the future.
Utility taxes (B&O Taxes) increase by 3%, or $337,373. The primary cause for the increase were
planned rate increases to City utilities. However, a smaller impact of the increase was a return to
pre-pandemic activities in the recreation classes.
Excise tax revenue, which includes Real Estate Excise Tax (REET), admissions, leasehold, and
gambling taxes, increased by 112%, which equates to approximately $3,010,000. Partially, this
increase is representative of a return to pre-pandemic revenues. Closure of venues, like casinos
and movie theaters, as well as impacts to real estate transactions during the second and third
quarter of 2020 impacted the revenue source significantly. For example, gambling related tax
revenue in 2021 was approximately $1,000,000 greater than the same revenue source in 2020.
Real Estate Excise Tax proceeds in 2021 improved greatly over 2020 revenues . As a ballpark
comparison, $4.2M versus $2.3M, respectively. While the improvement was partially related to
the lifting of pandemic related constraints, the 2021 revenue is an increase over pre-pandemic,
2019 receipts as well. In comparing 2019 and 2021 revenues, the revenue recognition improved
by 29%, or $972,660.
Exclusive of the change in net position from accrual basis entries like capital outlay expenditures
being reflected as capital investments on the balance sheet or recognition of annual pension and
depreciation expense, the areas of significant changes in the governmental type expenses are not
unexpected. One additional expense in the 2021 for governmental reports is the addition of
expenses that were a direct result of ARPA funded projects. In 2021, the ARPA fund reported
expenditures of nearly $3,000,000. This fund, and related expenditures, did not exist in previous
years. Otherwise, the expenses of the governmental type activities do not reflect significant
changes. The financial activity reported of the City for 2021 includes a more normal level of
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
expense without the constraining consequences of the pandemic. Instead, as a result of a return
toward pre-pandemic service level activity, and related expenses, a return toward expected levels
is presented.
GOVERNMENTAL ACTIVITIES – REVENUES BY SOURCE
GOVERNMENTAL ACTIVITIES – EXPENSES AND PROGRAM REVENUES
Business-Type Activities. 48% of the increase in the City of Pasco’s net position is related to
business-type activities. In 2021, the business-type activities made up 39% of the City’s net
position. The net position for business-type activities has increased by $25,103,157. This value
Charges
for services
26%
Operating
grants &
contributions
6%
Capital grants
& contributions
13%Property taxes
10%
Other taxes
35%
Investment income and
miscellaneous
10%
Sources of Revenues 2021
Charges for
services
24%
Operating
grants &
contributions
9%
Capital grants &
contributions
24%
Property taxes
9%
Proceeds from
bonds
0%
Other taxes
27%
Gain on sale
of asset
0%
Investment
income and
miscellaneous
7%
Sources of Revenues 2020
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
2021 Expenses 2021 Revenue 2020 Expense 2020 Revenue
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
represents an improvement to net position in 2021 of 12%. Total asset value increased 12%
primarily related to investment in capital investment some of which was supported by large grant
revenues. Liabilities increased 8%. This increase reflects the issuance of loan debt that was
incurred to support investment in the City’s sewer & process water reuse facilities. The City
increased rates for Water (3%) and Sewer (4%) in 2021. Investment in aging infrastructure,
coupled with investment in new facilities to support anticipated growth has occurred over the past
couple of years. This effort continued in 2021 and is reflected in City’s 2020-2025 Capital
Improvement Plan. Improvements. Funding for the necessary capital improvements will be
provided by a combination of grants, accumulated unrestricted fund balance, low interest loans,
and revenue bonds.
UTILITY ACTIVITIES – EXPENSES AND PROGRAM REVENUES COMPARISON
Water Utility operating expenses decreased primarily due to a markedly lower depreciation
expense in 2021. This decrease was the result of a change in useful life that significantly lowered
the annual depreciation of a sizable asset and consequently spreading the annual cost out over
many years as opposed to a much smaller number of years. The operating expense for the
Process Water Reuse Utility was lower in 2021 as a result of a decrease in contracted service
costs. In 2020, a large maintenance project to clean accumulated sludge from the reuse water
holding pond was being undertaken. Other than a final, small payment that project was
completed and paid for in 2020. The large increase in the revenue of the Process Water Reuse
represents the recognition of grants for the purpose of capital projects.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Financial Analysis of the City’s Funds
As noted earlier, the City of Pasco uses fund accounting to ensure and demonstrate compliance
with finance related legal requirements.
Governmental Funds. The focus of the City of Pasco’s governmental funds is to provide
information on near-term inflows, outflows and balances of spendable resources. Such information
is useful in assessing the City of Pasco financing requirements. In particular, unreserved fund
balance may serve as a useful measure of a government’s net resources available for spending at
the end of the fiscal year.
For the period ended on December 31, 2021, the City of Pasco governmental funds reported
combined ending fund balances of $85,354,065 which is an increase of $8,422,105, or 11% from
the prior year. Approximately 25% of this total amount, $21,449,093 constitutes unassigned fund
balance, which is available for spending at the government’s discretion.
The General Fund is the chief operating fund of the City of Pasco. The services provided by the
General Fund are those that most citizens view as government services. They include police and
fire protection, parks and recreation programs, the issuing of building permits and community wide
code enforcement, our municipal court operations, and the functions of the Council and
administrative services of City government.
The overall fund balance of the City of Pasco’s General Fund decreased d uring 2021 by
$8,689,226. The revenues for the General Fund increased by $9,684,191. This improvement was
primarily due to increases in tax revenues. Leading the way in revenue increases over 2020 totals
was sales tax ($3.7M), followed by gambling tax ($1M) and property tax ($.5M). Expenditures
reported by the General Fund increased by $5,658,223 between 2021 and 2020. This increase was
spread across the functions of government. Wages and related benefits cost an additional
$2,066,766 over 2020 figures. This change represents an increase of 7%. However, actual regular
wages were only 4% greater. Contributing to the increase additionally for this class of expenditures
were growth in overtime costs, the employment of seasonal employees, deferred and workers’
compensation. While pandemic related concerns and restrictions related to the pandemic remained
in 2021, the year reflected a return to the more typical rhythms of pre-COVID activity. As such
the needs for seasonal staff, as well as the instances where employees were needed on an overtime
basis, increased. The increase related to deferred compensation were planned and budgeted. The
worker’s compensation expense is directly affected by rate changes implemented by the State of
Washington based upon needs of the program. As explained throughout this report, operational
changes related to COVID in turn increased expenditures. This effect also occurred in the General
Fund. For example, for a time in 2020 construction languished but in 2021 the return to a full year
of activity resulted in an approximate increase in contract building inspection services of $500,000.
Nearly to the same extent of cost increase, purchases for equipment and technology items that are
not capital in nature were $459,183 greater in 2021 as opposed to 2020.
Also affecting the change in fund balance are transfers in or out of the General Fund. In 2021, the
effect of transfers was a net transfer out of $9,945,955. Transfers into the General Fund increased
by $582,105. Transfer out of the General Fund increased by $10,528,060. These transfers out
totaling $21,825,363, were made to support capital projects in the amount of $7,096,976. The
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
remaining transfers out were subsidies. See Note 6 for more detail. At the end of 2021, unassigned
fund balance of the General Fund was $21,717,650.
The unassigned fund balance at year end 2021 does represent a decrease as compared to the balance
available as of the end of 2020 by $4,156,165. As a measure of the General Fund’s liquidity, it
may be useful to compare unrestricted, unassigned fund balance to total expenditures. As of
December 31, 2021, the unassigned fund balance represents 39% of total expenditures.
Proprietary Funds. The City of Pasco enterprise funds provide the same type of information
found in the government-wide financial statements for business-type activities. The activity of the
Water/Sewer Utility, a major fund, is separately stated from that of the internal service funds when
reported at the fund level. Unrestricted net position of the Utility Fund at the end of 2021 was
$24,635,116. A working capital ratio is the value of current assets less current liabilities. It is a
measure of liquidity and the utility’s ability to meet its short-term payment obligations. At the end
of 2021, the utility is well positioned as it has current assets of $58,075,094 available to meet its
current liability obligations of $11,346,736, resulting in a working capital of $46,728,358. This
positive position indicates the Utility is well positioned to support current operations and invest in
future growth. The increase in current assets is impacted by unspent bond proceeds and fees
collected with the addition of new service areas. The total value of these funds is anticipated to be
used in 2021 to support capital improvements. Exclusive of capital related activity, current assets
increased by $17,284,211. This change is related to an improved cash balance and a large increase,
$12,342,613, in outstanding receivables at year. Grants receivable increased by $4,315,168. A
large loan receivable of $7,879,978 is outstanding at year-end. Current liabilities increased by
$4,658,185 as compared to year end 2020. Primarily, this increase reflects the coming years’ debt
service tied to the issuance of new loans. The utility reports income before contributions and
transfers of $7,204,952; an increase of a $3,434,175 over the prior year. This improvement is
primarily a creation of a change of estimated useful life of a large asset, and a resulting significant
reduction in the year’s annual depreciation expense. Revenues increased slightly and in line with
the planned increase of utility rates. Depreciation expense decreased by $1,721,655 in 2021. Of
other operational expenses, salaries and wages expense increased a small one percent, supplies
expenses slightly decreased, and service expenses decreased by 4% ($474,535). The decrease in
service expense is tied to the cessation of a 2020 consultant agreement for PWRF Sludge removal.
Capital contributions to the fund for year 2021 amounted to $12,852,973. These contributions are
tied to service area growth for the utilities and, as such, must be spent on capital expansion. As
mentioned before, the City continues to invest in new infrastructure to support the growth of its
population and address aging infrastructure issues and the capital contributions are limited in use
to supporting the expansion of the utility, in effect causing growth in capacity demand to pay at
least in part for the growth of the system infrastructure.
General Fund Budgetary Highlights
The year 2021 is the first in a two-year biennial budget. The legal level of appropriation is at the
fund level and the authorization is for the true biennial period. As this year is the first of a two-
year budget period, a substantial portion of time remains to pass for full comparison. As required
by the Revised Code of Washington (RCW), the City performed a mid-biennium review paying
special attention to make necessary adjustments resulting from knowledge gained since the
creation of the original budget. As reflected by actual 2021 activity, the revenue budget was
increased to better account for increased tax revenue activity and development related revenues.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The expenditure budget also increased. This increase included the approval of an additional 18
new staff positions. During budget development in 2020, the uncertainty surrounding COVID
required caution. Consequently, staff strategically chose to postpone additions to the count of
permanent staff until economic impacts were better known. During the mid-biennium budget
process, the decision to add staff was secured thanks to the passage of time and return of greater
confidence in the expectations of the coming years. Other increases to expenditure budgets in the
General Fund included a large increase in transfers out to cover planned capital purchases, an
increase in technology supporting services and budget authority to cover the increased contracted
services that support building inspection services for demands related to development.
Capital Asset and Debt Administration
Capital Assets. The City of Pasco’s investment in capital assets for its governmental and business-
type activities as of December 31, 2021, amounts to $438,708,308 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, machinery and
equipment, park facilities, roads, water, and sewer treatment plants, etc. The total change in the
City of Pasco’s capital assets (net of depreciation) for the current year was an increase of
$11,717,602 for governmental activities and an increase of $16,741,196 for business-type
activities.
Major capital asset activity during the current fiscal year included the following:
• Noteworthy capital spending for the governmental type activities included Fire Station 84
($5.6M), Peanuts Park Restoration ($5.5M), Lewis Street Overpass ($6.3M). Projects valuing
$17.1M were completed and removed from construction work in progress in 2021.
• Primary business-type projects undertaken in 2021 included the Columbia Forcemain and Lift
Station ($6.6M), Northwest Area (Broadmoor) Sewer LID ($2.2M), Wastewater Treatment
Plant Improvements, ($5.5M) and $875,805 of improvement toward the West Pasco Water
Treatment Plant Expansion, Phase 1. Projects valuing $24.5M were completed and removed
from construction work in progress in 2021.
Additional information on the City of Pasco’s capital assets can be found in Note 5.
Long-term Debt. At the end of 2021, the City of Pasco had total outstanding debt of $90.8 million.
Of this amount, $23.9 million comprised debt backed by the full faith and credit of the government.
The business-type debt total of $65.8 million is primarily composed of $51.5 million of bonds
secured primarily by specified revenue resources (e.g., revenue bonds). The remaining business-
type debt is composed of low interest loans, namely from State of Washington sponsored programs
2021 2020 2021 2020 2021 2020
Land 24,195,239$ 23,877,045$ 4,271,393$ 3,882,418$ 28,466,632$ 27,759,463$
Construction in process 25,425,864 20,525,366 12,874,888 18,494,884 38,300,752 39,020,250
Buildings and structures 47,572,780 34,574,138 63,643,686 45,619,874 111,216,466 80,194,012
Other improvements 4,709,099 3,561,348 550,964 496,028 5,260,063 4,057,376
Machinery and equipment 9,293,307 8,869,436 10,156,349 9,540,645 19,449,656 18,410,081
Infrastructure 181,131,343 189,202,697 142,236,280 138,958,515 323,367,623 328,161,212
Total capital assets 292,327,632$ 280,610,030$ 233,733,560$ 216,992,364$ 526,061,192$ 497,602,394$
City of Pasco's Capital Assets at Year-End
(Net of Depreciation)
Governmental Activities Business-Type Activities Total Primary Government
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
including the Public Works Board Loan, the Department of Health, and the Department of
Ecology. The business-type activities also have an outstanding Hanford Area Economic
Investment Fund (HAEIF) loan for improvements at the reuse facility.
Additional information on the City of Pasco’s long-term liabilities can be found in Note 8.
Economic Factors and Next Year’s Budgets and Rates
In 2021, despite the concerns surrounding the pandemic, the local economy was strong. The
stability of the economy resulted in an unemployment rate in Franklin County of 5.5%. The prior
year’s rate was 8.1%. Historically, the County’s 3-year average unemployment rate has been 7.7%.
Permitting activity, representative of the attractiveness of a community for both residential and
commercial investment, increased substantially from 2020 to 2021. The percentage of permit value
increase was 102% for all permit types. By type of permit, the percentage changes are commercial
(256%), industrial (235%) and residential (-20%). The City issued 2,860 building permits in 2021.
While this count is a decrease of 2.3% from the previous year, the total value of the permits issued
increased by 102%, or $2.9 million. This represents approximately $576 million in construction
value. Of the total permits, 366 were for new single-family residences, which equates to
$97,150,139 in construction value. The average value of a new home in Pasco was approximately
$407,600 in 2021, an increase of 22% over the prior year. The strength of the City’s growing
economy is confirmed by the Standard & Poor’s rating of the City’s 2019 General Obligation, and
most recently through their rating of the City’s 2020 Utility bond, issue as AA-/Stable. The City’s
ability to maintain its rating during a time of unprecedented economic certainty and volatility due
to the COVID-19 pandemic is reflective of the City’s bright long and short-term economic
prospects.
Businesses have continued making a significant investment in Pasco through the addition of new
or improvements to existing infrastructure. In total, the City received more than $453M investment
in construction for commercial and industrial purposes, an increase of $321M. Significant
commercial improvement in 2021 involved the initiation of construction of two Amazon, Inc.
distribution centers, each more than one million square feet in size that are anticipated to employ
more than 1,500 people. Across town from the Amazon construction sites, the City is also working
with landowners on developing the Broadmoor area, a location central to the Tri-Cities region and
a blank space ready for development. The City extended sewer services to the area in the summer
of 2019 and has completed the environmental review process for the master planned development
of a two-thousand-acre area encompassing what is known as the Broadmoor Area. The
development plan envisions the area to include a combination of homes, condominiums,
apartments, offices, stores, mixed-use buildings and a transportation system of bike/pedestrian
trails, transit and boulevards focused on connectivity and walkability. In 2021, the City made plans
2021 2020 2021 2020 2021 2020
Special Assessment Bonds -$ -$ -$ -$ -$ -$
Loans & Notes 3,591,000 - 14,298,571 6,884,518 17,889,571 6,884,518
General Obligation Bonds 23,920,000 24,795,000 - - 23,920,000 24,795,000
Revenue Bonds - - 49,005,000 51,395,000 49,005,000 51,395,000
Premium 4,036,391 4,188,241 2,492,184 2,646,892 6,528,575 6,835,133
31,547,391$ 28,983,241$ 65,795,755$ 60,926,410$ 97,343,146$ 89,909,651$
City of Pasco's Bonds and Notes
Governmental Activities Business-Type Activities Total Primary Government
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
that will address the interchange with Interstate 182, as well as other transportation related
improvements, to allow for increased capacity that will be necessary as development occurs. Major
retailers, like Costco, are expected to be serving the residents of Pasco and its neighboring areas.
The Road 68 Corridor, spanning both north and south sides of Interstate I-182, continues to
experience rapid development for both local and national businesses. Today, the corridor is home
to over 2,250 jobs, representing an increase of 62% since 2015. Supporting the business growth
has been an increase in residential development along the corridor. The City expects to
accommodate the addition of a number of multifamily projects along the corridor in the future.
A project many years in the making, the $37 M Lewis Street Overpass started construction in
August of 2021. The improvements include construction of a 625-foot 4-span concrete overpass
over the BNSF railway yard and a 70-foot single span structure over 1st Ave. The project is
supported by local, state and federal funds. The new overpass will allow for the retirement of an
aged underpass built in 1937. The addition of the Lewis Street Overpass provides a crucial and
safety minded link between the Pasco Central Business District and eastern Pasco.
Beginning in 2020 and extended into 2021, the Pasco economy suffered the impacts of the global
pandemic. Sadly, individuals and segments of the Pasco population experienced crisis and personal
catastrophe. In 2021 the City used a portion of its allocation of the Coronavirus State and Local
Fiscal Recovery Funds under the American Rescue Plan Act (ARPA) to respond the negative
economic impact of the pandemic. Combined ARPA support of a business assistance grant
program ($1.95 million) and a utility assistance grant program ($1.1 million) through a partnership
between the City, the Greater Pasco Area Chamber of Commerce and Franklin County PUD,
respectively was undertaken. A significant portion of the City’s remaining ARPA funds in the
amount of $6 million are approved for the partial funding of capital infrastructure expansion at one
of Pasco’s two water treatment plants. The cost of this project would otherwise be fully supported
by rate payers by way of debt service payments, ultimately and rates. Use of ARPA funds removes
this burden from the rate calculation thereby benefitting all customers both residential and
commercial.
In 2022 the City is conducting numerous rate studies and a cost of service analysis. Among these
efforts are ambulance, water and sewer rate studies along with cost of service analysis for the water
and sewer utilities. While routine as a practical step to appropriate and equitable rate setting the
anticipated growth in the City related to known and anticipated development is also a consideration
of the factors in planning.
A copy of City of Pasco’s most recent 2021-2022 Biennial Budget can be access on the City’s
website at https://www.pasco-wa.gov/1104/2021-2022-Budget .
Requests for Information
This financial report is designed to provide a general overview of the City of Pasco’s finances for
all those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to the Finance Director, PO Box 293, Pasco, WA 99301.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
BASIC FINANCIAL STATEMENTS
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Component Units
Governmental
Activities
Business-type
Activities Total
Pasco Public Facility
District
ASSETS
Current assets:
Cash and cash equivalents $ 59,308,521 $ 27,038,866 $ 86,347,387 $ 88,851
Restricted Cash:
Program, grant, donation 15,872,339 - 15,872,339 -
Customer deposits 579,661 503,815 1,083,476 -
Capital Development - 12,570,132 12,570,132 -
Permit and plan check 2,488,199 - 2,488,199 -
Unspent bond proceeds 5,261,812 4,697,953 9,959,765 -
Debt Service 417,951 484,754 902,705 -
Investments 7,128,242 3,033,822 10,162,064 -
Receivables
Taxes 6,087,150 - 6,087,150 164,172
Customers (net of allowances) 5,016,462 2,977,809 7,994,271 -
Grants 7,088,143 4,412,223 11,500,366 -
Due from other governments 100,000 - 100,000 -
Loans - 7,879,978 7,879,978 -
Inventories - 424,827 424,827 -
Total current assets 109,348,480 64,024,179 173,372,659 253,023
Noncurrent Assets:
Cemetery Endowment 516,368 - 516,368 -
Debt Covenants - 4,778,013 4,778,013 -
Special assessments 983,148 11,999 995,147 -
Net pension asset 41,904,503 2,951,907 44,856,410 -
Net OPEB asset 3,899,640 - 3,899,640 -
Joint Ventures 1,502,374 - 1,502,374 -
Capital assets not being depreciated:
Land 24,195,239 4,271,393 28,466,632 -
Construction work in progress 25,425,864 12,874,888 38,300,752 -
Capital assets net of accumulated depreciation
Buildings and structures 47,572,780 63,643,686 111,216,466 -
Other improvements 4,709,099 550,964 5,260,063 -
Machinery and equipment 9,293,307 10,156,349 19,449,656 -
Infrastructure 181,131,343 142,236,280 323,367,623 -
Total noncurrent assets 341,133,665 241,475,479 582,609,144 -
Total assets 450,482,145 305,499,658 755,981,803 253,023
DEFERRED OUTFLOWS OF RESOURCES
Pension Related 3,750,219 397,916 4,148,135 -
Asset Retirement reserve - 10,363 10,363 -
Debt refunding - 30,497 30,497 -
Total deferred outflows of resources 3,750,219 438,776 4,188,995 -
Total assets and deferred outflows of resources 454,232,364 305,938,434 760,170,798 253,023
Continued on nex page
City of Pasco
Statement of Net Position
December 31, 2021
Primary Government
The notes to financial statements are an integral part of this statement.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Component Units
Governmental
Activities
Business-type
Activities Total
Pasco Public Facility
District
LIABILITIES
Current liabilities:
Accounts payable 5,624,180 3,591,907 9,216,087 235,908
Deposits payable from restricted assets 579,661 503,815 1,083,476 -
Accrued interest payable - 194,822 194,822 -
Compensated absences - current 2,508,705 296,896 2,805,601 -
Notes & loans payable - current 190,000 1,052,584 1,242,584 -
Bonds payable - current 1,061,850 2,216,113 3,277,963 -
Net pension liability 641,803 215,901 857,704 -
Total OPEB liability 594,998 - 594,998 -
Total current liabilities 11,201,197 8,072,038 19,273,235 235,908
Noncurrent liabilities:
Compensated absences 1,656,282 39,257 1,695,539 -
Asset Retirement reserve - 10,363 10,363 -
Total OPEB liability 10,010,394 - 10,010,394 -
Net pension liability 178,303 65,754 244,057 -
Bonds payable 26,894,541 49,281,071 76,175,612 -
Notes & loans payable 3,401,000 13,245,987 16,646,987 -
Total non current liabilities 42,140,520 62,642,432 104,782,952 -
Total liabilities 53,341,717 70,714,470 124,056,187 235,908
DEFERRED INFLOWS OF RESOURCES
Pension related 25,386,056 3,066,050 28,452,106 -
Property taxes 134,666 - 134,666 -
Special assessments 852,586 - 852,586 -
Municipal court 827,518 - 827,518 -
Total OPEB related 714,092 - 714,092 -
Other deferred revenues 240,888 150,000 390,888 -
Traffic Impact fees 1,318,704 1,318,704 -
Unavailable revenue - advance grant funds 5,858,677 - 5,858,677 -
Total deferred inflows of resources 35,333,187 3,216,050 38,549,237 -
Total liabilities and deferred inflows of resources 88,674,904 73,930,520 162,605,424 235,908
NET POSITION
Net investment in capital assets 266,042,053 172,666,255 438,708,308 -
Restricted for:
Cemetery Endowment - Nonspendable 647,679 647,679
Program, grant, donations 410,432 - 410,432 -
Streets and boulevards 10,116,883 - 10,116,883 -
Litter and housing abatement 869,402 - 869,402 -
Park development 3,061,180 - 3,061,180 -
Permit & plan check fee 2,488,199 - 2,488,199 -
Culture and recreation 111,910 - 111,910 -
Capital Improvement 16,688,737 17,268,085 33,956,822 -
Economic development 884,031 - 884,031 -
Pensions 41,703,307 2,951,907 44,655,214 -
State Law WAC 2,138,020 - 2,138,020 -
OPEB 3,899,640 - 3,899,640 -
Debt repayment/guarantee 417,551 5,262,768 5,680,319 -
Unrestricted 16,078,436 33,858,899 49,937,335 17,115
Total net position $ 365,557,460 $ 232,007,914 $ 597,565,374 $ 17,115
City of Pasco
Statement of Net Position
December 31, 2021
Primary Government
The notes to financial statements are an integral part of this statement.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Functions/Programs Expenses Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Pasco
Public
Facilities
District
Primary government:
Governmental activities:
General Government $ 38,484,360 $ 4,689,314 $ 226,178 $ - $ (33,568,868) $ - $ (33,568,868) $ -
Public Safety 4,741,972 11,589,116 2,696,170 133,056 9,676,370 - 9,676,370 -
Transportation 19,775,168 3,244,011 - 15,322,960 (1,208,197) - (1,208,197) -
Natural & Economic environment 9,861,596 8,944,701 4,432,168 - 3,515,273 - 3,515,273 -
Culture & Recreation 8,229,736 2,312,057 - 238,037 (5,679,642) - (5,679,642) -
Interest on long term debt 1,260,491 - - - (1,260,491) - (1,260,491) -
Total governmental activities 82,353,323 30,779,199 7,354,516 15,694,053 (28,525,555) - (28,525,555) -
Business-type activities:
Water 9,096,424 13,117,285 58,810 2,932,141 - 7,011,812 7,011,812 -
Irrigation 2,022,813 1,974,750 - 139,200 - 91,137 91,137 -
Sewer 8,993,973 11,261,976 - 2,547,711 - 4,815,714 4,815,714 -
PW Reuse Facility 4,505,156 4,789,322 - 6,947,521 - 7,231,687 7,231,687 -
Storm Water 1,809,494 2,312,031 - 269,025 - 771,562 771,562 -
Total business-type activities 26,427,860 33,455,364 58,810 12,835,598 - 19,921,912 19,921,912 -
Total primary government 108,781,183 64,234,563 7,413,326 28,529,651 (28,525,555) 19,921,912 (8,603,643) -
Component units:
Pasco Public Facility District 821,915 20,000 60,000 - - - - (741,915)
Total component units 821,915 20,000 60,000 - - - - (741,915)
11,496,330 - 11,496,330 -
23,773,555 - 23,773,555 788,711
11,454,216 - 11,454,216 -
5,703,242 - 5,703,242 -
5,708,787 757,323 6,466,110 -
3,092,730 136,012 3,228,742 -
Interfund loan (3,285,274) 3,285,274 -
269,783 - 269,783 -
58,213,369 4,178,609 62,391,978 788,711
(1,758,297) 1,758,297 -
27,929,517 25,858,818 53,788,335 46,796
338,224,701 206,904,758 545,129,459 (29,681)
(596,758) (755,662) (1,352,420) -
$ 365,557,460 $ 232,007,914 $ 597,565,374 $ 17,115 Net position - ending
The notes to financial statements are an integral part of this statement.
Investment income and miscellaneous
Gain on disposition of asset
Change in net position
Net position - beginning
Prior Period Adjustments
Transfers
Net (Expense) Revenue and Changes in Net Position
Statement of Activities
For the Year Ended December 31, 2021
Total general revenues
Program Revenues Primary Government
General revenues:
Property taxes
Sales taxes
B&O taxes
Excise taxes
Intergovernmental
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
General Fund ARPA Construction Total Nonmajor Funds
Total Governmental
Funds
ASSETS
Cash and cash equivalents $ 6,933,261 $ 5,256,721 $ - $ 37,091,725 $ 49,281,707
Restricted Cash
Program, grant, donation 371,543 - 38,889 13,323,887 13,734,319
Customer Deposits 439,063 - - 140,599 579,662
Unspent bond proceeds 3,808,852 - - 1,452,959 5,261,811
Permit and Plan Check 2,488,199 - - - 2,488,199
Debt service - - - 30,405 30,405
Investments 2,316,252 479,984 - 3,105,719 5,901,955
Restricted Cemetery Endowment - - - 516,368 516,368
Receivables
Taxes 5,399,881 - - 687,270 6,087,151
Customers (net of allowances) 2,484,512 36,912 774,783 1,731,584 5,027,791
Interfund loans 9,091,610 - - 41,394 9,133,004
Grants 216,220 - 6,359,476 512,447 7,088,143
Special assessment loan 983,148 983,148
Due from other governments - - - 100,000 100,000
Total assets 33,549,393 5,773,617 7,173,148 59,717,505 106,213,663
LIABILITIES
Accounts payable 2,085,239 30,881 1,882,074 1,200,971 5,199,165
Interfund loans payable - - 5,174,478 673,253 5,847,731
Pay from restricted assets - Deposits 439,063 - - 140,599 579,662
Total liabilities 2,524,302 30,881 7,056,552 2,014,823 11,626,558
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 134,666 - - - 134,666
Unavailable revenue - special assessments - - - 852,586 852,586
Unavailable revenue - court receivables 827,518 - - - 827,518
Unavailable revenue - advance grant funds - 5,742,080 116,597 - 5,858,677
Unavailable revenue - other - - - 240,889 240,889
Unavailable revenue - traffic impact fees - - - 1,318,704 1,318,704
Total deferred Inflows of resources 962,184 5,742,080 116,597 2,412,179 9,233,040
Total liabilities and deferred Inflows of resources 3,486,486 5,772,961 7,173,149 4,427,002 20,859,598
FUND BALANCES (DEFICITS)
NonSpendable
Cemetery endowment - - - 647,679 647,679
Restricted
Capital improvements 3,808,852 - - 12,806,531 16,615,383
Culture & Recreation - - - 111,910 111,910
Debt Guarantee - - - 417,551 417,551
Economic development - - - 884,031 884,031
Litter & housing abatement - - - 869,402 869,402
Park development - - - 3,061,180 3,061,180
Permit & Plan Check Fee 2,488,199 - - - 2,488,199
Program, grant, donation 410,432 - - - 410,432
Street and boulevard - - - 10,119,648 10,119,648
Committed
Red Flex - - - 691,345 691,345
Landfill claims 407,344 - - - 407,344
Special revenue funds - 655 - 25,949,784 25,950,439
Assigned
Future Project-Community Center 1,230,430 - - - 1,230,430
Unassigned 21,717,650 - - (268,558) 21,449,092
Total fund balances (deficits) 30,062,907 655 - 55,290,503 85,354,065
Total liabilities, deferred inflows of resources and fund
balances (deficits) $ 33,549,393 $ 5,773,616 $ 7,173,149 $ 59,717,505 $ 106,213,663
The notes to financial statements are an integral part of this statement.
City of Pasco
Balance Sheet
Governmental Funds
December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
85,354,065$
334,064,013
3,710,742
(47,003,314)
(25,891,272)
15,323,226
365,557,460$
Deferred inflows and proceeds from asset sales in governmental is
susceptible to full accrual therefore are not reported in the Statement of
Net Activities. Other expenses are susceptible to full accrual and are
reported in the Statement of Net Activities but not in the governmental
funds.
Internal Service funds are used by management to charge the costs of
certain activities to individual funds. The assets and liabilities of some
internal service funds are included in the governmental activities in the
statement of net position. Interfund loans between governmental activities
are excluded.
Net position of governmental activities
The notes to financial statements are an integral part of this statement.
City of Pasco
Reconciliation of Balance Sheet
To the Statement of Net Position
December 31, 2021
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net
position are different because:
Long-term assets used in governmental activities are not financial
resources and therfore are not reported in the governmental funds.
Deferred pension outflows are not available to pay for current period
expenditures and therefore are not reported in the governmental funds.
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the funds. Proceeds from new debt and
repayments of existing debts are recorded as resources and expenditures
for fund reporting but are additions and reductions of liabilities for
government wide reporting.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
General Fund ARPA Construction
Total Nonmajor
Funds
Total Governmental
Funds
REVENUES
Taxes $47,494,170 $ - $ - $ 4,933,173 $ 52,427,343
Licenses and permits 3,649,967 - - 466,470 4,116,437
Intergovernmental 6,185,189 2,990,076 7,088,864 6,063,301 22,327,430
Charges for service 8,767,672 - - 14,226,311 22,993,983
Fines and forfeitures 1,066,369 - - 262,390 1,328,759
Investment interest 18,226 655 - 24,585 43,466
Miscellaneous 902,895 - 775,894 2,106,520 3,785,309
Total revenues 68,084,488 2,990,731 7,864,758 28,082,750 107,022,727
EXPENDITURES
Current:
General Government 12,280,917 - (883) - 12,280,034
Public Safety 30,565,632 - 194,676 9,488,564 40,248,872
Transportation 2,450,774 - 1,373 2,769,536 5,221,683
Natural & Economic environment 3,271,671 2,977,304 - 5,405,846 11,654,821
Culture & Recreation 5,173,189 - 1,420 2,386,154 7,560,763
Capital outlay:
General Government 98,955 - 14,115 - 113,070
Public Safety 47,314 - 6,028,972 - 6,076,286
Transportation - - 9,362,055 - 9,362,055
Natural & Economic environment - - - 132,943 132,943
Culture & Recreation - - 6,841,130 - 6,841,130
Debt service:
Principal retirement 828,650 - - 236,350 1,065,000
Interest 1,065,272 - - 204,016 1,269,288
Total expenditures 55,782,374 2,977,304 22,442,858 20,623,409 101,825,945
Excess (deficiency) of revenues over expenditures 12,302,114 13,427 (14,578,100) 7,459,341 5,196,782
OTHER FINANCING SOURCES (USES)
Insurance recoveries 30,531 - - 10,081 40,612
Sale of asset - - - 608,915 608,915
Debt proceeds 3,781,000 3,781,000
Transfers in 803,492 - 14,578,100 15,167,170 30,548,762
Transfers out (21,825,363) (12,772) - (10,017,162) (31,855,297)
Total other financing sources (uses) (20,991,340) (12,772) 14,578,100 9,550,004 3,123,992
Net change in fund balances (8,689,226) 655 - 17,009,345 8,320,774
Fund balances - beginning 38,752,133 - - 38,179,829 76,931,962
Prior Period Adjustment - - - 101,329 101,329
Fund balances - ending $30,062,907 $ 655 $ - $ 55,290,503 $ 85,354,065
The notes to financial statements are an integral part of this
City of Pasco
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
8,320,774$
12,817,091
34,065
13,167,970
(3,285,273)
(451,762)
230,693
(339,892)
27,929,517$
Revenues reported in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds.
December 31, 2021
City of Pasco
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances to the Statement of Activities
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of net position are
different because:
Governmental funds report capital outlays as expenditures. In the statement of
activities, the cost of assets are allocated over the useful life of the asset as
depreciation expense.
The issuance of long-term debt (e.g. bonds, notes) provides current financial
resources to governmental funds, while the repayment of the principle of long-
term debt consumes current financial resources of governmental funds. Neither
transaction, however, has any affect on net position. Also, in the governmental
funds, the effect of premiums or discounts are reported as resources or uses of
current financial resources when the debt is first issued, whereas these amounts
are deferred and amortized over the life of the debt in the statement of activities.
(2,564,149)
Some expenses such as for compensated absences, pension expense, loss on
disposal of assets, etc. reported in the Statement of Activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in the governmental funds.
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The net revenue of certain activity is reported with
governmental activities. Interfund transfers between governmental funds are
eliminated in the Statements of Activities.
The net effect of various miscellaneous transactions involving capital assets (i.e.,
sale of assets and capital contributions) and the net impact to assets.
Change in net position of governmental activities
The notes to financial statements are an integral part of this statement.
The effect of eliminating interfund loan disbursement to Business-Type fund.
The effect of eliminated interfund transfers between governmental internal service
funds and governmental funds.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Variance with
Original Final Actual Final Budget
REVENUES
Taxes 81,556,087$ 88,160,320$ 47,494,170$ (40,666,150)$
Licenses and permits 5,565,781 5,806,781 3,649,967 (2,156,814)
Intergovernmental 4,684,217 16,508,804 6,185,189 (10,323,615)
Charges for service 15,641,239 17,898,565 8,767,672 (9,130,893)
Fines and forfeitures 2,546,354 2,066,354 1,066,369 (999,985)
Investment income 570,507 3,640,507 18,226 (3,622,281)
Miscellaneous 823,841 884,203 902,895 18,692
Total revenues 111,388,026 134,965,534 68,084,488 (66,881,046)
EXPENDITURES
Current:
General Government 27,402,204 28,479,899 12,280,917 (16,198,982)
Public Safety 56,225,163 60,921,895 30,565,632 (30,356,263)
Transportation 4,828,620 5,439,826 2,450,774 (2,989,052)
Natural & Economic environment 5,213,472 6,299,512 3,271,671 (3,027,841)
Cultural & Recreation 10,772,179 11,071,467 5,173,189 (5,898,278)
Capital outlay:-
General Government 869,079 4,519,979 98,955 (4,421,024)
Public Safety 85,500 201,726 47,314 (154,412)
Natural & Economic environment - 8,400 - (8,400)
Debt service:- - - -
Principal 1,685,000 1,685,000 828,650 (856,350)
Interest 2,095,250 2,095,250 1,065,272 (1,029,978)
Total expenditures 109,176,467 120,722,954 55,782,374 (64,940,580)
Excess (deficiency) of revenues over expenditures 2,211,559 14,242,580 12,302,114 (1,940,466)
OTHER FINANCING SOURCES (USES)
Transfers in 1,269,762 1,269,762 803,492 (466,270)
Transfers out (8,033,724) (26,481,405) (21,825,363) 4,656,042
Insurance recoveries 61,562 66,562 30,531 (36,031)
Total other financing sources (uses)(6,702,400) (25,145,081) (20,991,340) 4,153,741
Net change in fund balances (4,490,841) (10,902,501) (8,689,226) 2,213,275
Fund balances - beginning 38,752,133 38,752,133 38,752,133 2,213,275
Fund balances - ending 34,261,292$ 27,849,632$ 30,062,907$ 4,426,550$
The notes to financial statements are an integral part of this statement.
Budgeted Amounts
City of Pasco
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2021
2021/2022 Biennial
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Variance with
Original Final Actual Final Budget
REVENUES
Investment income $ - $ - $ 655 $ 655
Intergovernmental - 17,464,000 2,990,076 (14,473,924)
Total revenues - 17,464,000 2,990,731 (14,473,269)
EXPENDITURES
Current:
Natural & Economic environment - 4,924,000 2,977,304 1,946,696
Total expenditures - 4,924,000 2,977,304 1,946,696
Excess (deficiency) of revenues over expenditures - 12,540,000 13,427 (12,526,573)
OTHER FINANCING SOURCES (USES)
Transfers out - (12,540,000) (12,772) 12,527,228
Total other financing sources (uses) - (12,540,000) (12,772) 12,527,228
Net change in fund balances - - 655 655
Fund balances - beginning - - - -
Fund balances - ending $ - $ - $ 655 $ 655
City of Pasco
Budgeted Amounts
The notes to financial statements are an integral part of this statement.
ARPA Fund - Major Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $15,666,000 $16,942,038 $ 7,088,864 $(9,853,174)
Miscellaneous 5,576,047 1,019,000 775,894 (243,106)
Total revenues 21,242,047 17,961,038 7,864,758 (10,096,280)
EXPENDITURES
Current:
General Government - - (883) 883
Public Safety - - 194,676 (194,676)
Transportation - - 1,373 (1,373)
Cultural & Community Activities - - 1,420 (1,420)
Capital outlay:
General Government - 312,887 14,115 298,772
Public Safety 3,919,724 1,014,006 6,028,972 (5,014,966)
Transportation 27,295,939 28,246,431 9,362,055 18,884,376
Natural & Economic environment - 719,115 - 719,115
Cultural & Community Activities 3,700,384 14,565,575 6,841,130 7,724,445
Total expenditures 34,916,047 44,858,014 22,442,858 22,415,156
Excess (deficiency) of revenues over expenditures (13,674,000) (26,896,976) (14,578,100) 12,318,876
OTHER FINANCING SOURCES (USES)
Transfers in 13,674,000 26,176,976 14,578,100 (11,598,876)
Total other financing sources (uses) 13,674,000 26,176,976 14,578,100 (11,598,876)
Net change in fund balances - (720,000) - 720,000
Fund balances - beginning - - - -
Prior Period Adjustment - - - -
Fund balances - ending $ - $ (720,000) $ - $ 720,000
City of Pasco
Budgeted Amounts
The notes to financial statements are an integral part of this statement.
Construction Fund - Major Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Business-type
Water/Sewer Utility Internal Service Funds
ASSETS
Current assets:
Cash and cash equivalents $ 21,669,002 $ 15,784,225
Restricted Cash
Customer deposits 503,815 -
Self-insured reserve - 2,138,020
Capital development 12,570,132 -
Unspent bond proceeds 4,697,953 -
Debt Service 484,754 -
Investments 2,454,601 1,805,508
Receivables
Customers (net of allowances) 2,977,809 12
Grants 4,412,223 -
Loans 7,879,978 -
Inventory 424,827 -
Total current assets 58,075,094 19,727,765
Noncurrent assets:
Debt covenants 4,778,013 -
Special assessments 11,999 -
Net Pension asset 2,951,907 201,196
Capital assets not being depreciated:
Land 4,271,393 -
Construction in progress 12,874,888 -
Capital assets net of accumulated depreciation:
Buildings and structures 63,643,686 -
Other improvements 550,964 -
Machinery and equipment 8,582,323 6,709,067
Infrastructure 142,236,280 -
Total noncurrent assets 239,901,453 6,910,263
Total assets 297,976,547 26,638,028
DEFERRED OUTFLOWS OF RESOURCES
Pension related 397,916 27,121
Asset Retirement Reserve 10,363 -
Debt refunding 30,497 -
Total deferred outflows of resources 438,776 27,121
Total assets and deferred outflows of resources 298,415,323 26,665,149
continued on next page
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Net Position
Proprietary Funds
December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Business-type
Water/Sewer Utility Internal Service Funds
LIABILITIES
Current liabilities:
Accounts payable 3,581,333 435,591
Other liabilities
Pay from restricted assets - Deposits 503,813 -
Accrued interest payable 194,822 -
Compensated absences 296,896 -
Interfund loan current 3,285,273 -
Notes & loans Payable 1,052,584 -
Net Pension Liability 215,902 17,529
Revenue bonds 2,216,113 -
Total current liabilities 11,346,736 453,120
Noncurrent liabilities
Compensated absences 39,257 -
Asset retirement reserve 10,363 -
Notes & loans Payable 13,245,987 -
Revenue bonds payable (net of premium) 49,281,071 -
Net pension liability 65,755 1,668
Total noncurrent liabilities 62,642,433 1,668
Total liabilities 73,989,169 454,788
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 150,000 -
Pension Related 3,066,050 208,976
Total deferred inflows of resources 3,216,050 208,976
Total liabilities and deferred inflows of resources 77,205,219 663,764
NET POSITION
Net investment in capital assets 171,092,229 6,709,067
Restricted for:
State Law WAC - 2,138,020
Capital improvement 17,268,085 -
Debt repayment/guarantee 5,262,767 -
Pension 2,951,907 201,196
Unrestricted 24,635,116 16,953,102
Total net position 221,210,104 $ 26,001,385
Adjustment for the net effect of the current year
activities between the internal service funds and the
enterprise fund
7,512,537
Adjustment to eliminate interfund loan between General
Fund to Business Type 3,285,273
Net position of business-type activities $ 232,007,914
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Net Position
Proprietary Funds
December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Business-type
Water/Sewer Utility Internal Service Funds
OPERATING REVENUES
Permits $ 258,603 $ -
Charges for service 33,196,262 11,564,765
Fines and forfeitures 500 -
Total operating revenues 33,455,365 11,564,765
OPERATING EXPENSES
Depreciation 4,673,965 1,152,213
Salaries & wages 4,015,954 438,208
Personnel benefits 530,228 42,266
Supplies 2,086,280 1,440,857
Services 13,183,938 7,309,190
Total operating expenses 24,490,365 10,382,734
Operating income (loss) 8,965,000 1,182,031
NONOPERATING REVENUES (EXPENSES)
Investment income 22,696 13,511
Miscellaneous 14,404 190,406
Rents and leases 80,646 -
Grants 58,810 -
Insurance recoveries 891 8,802
Sale of asset - 11,970
Interest expense (1,937,495) -
Total nonoperating revenues (expenses) (1,760,048) 224,689
Income (loss) before contributions and transfers 7,204,952 1,406,720
Capital contributions 12,852,973 33,056
Transfers in 1,758,437 -
Transfers out (140) (451,762)
Change in net position 21,816,222 988,014
Total net position - beginning 199,921,768 25,937,285
Prior Period Adjustment (527,886) (923,914)
Total net position - ending 221,210,104 26,001,385
Changes in net position 21,816,222
Adjustment for the net effect the current year activity between the
internal service funds and the enterprise fund 757,323
Adjustment to eliminate interfund loan between General Fund to
Business Type 3,285,273
Change in net position of business-type activities $ 25,858,818
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Business-type
Water/Sewer Utility Internal Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 33,413,998 $ 11,564,764
Payments to employees (5,782,631) (614,895)
Payments to suppliers (13,857,454) (8,662,039)
Net cash provided (used) by operating activities 13,773,913 2,287,830
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Grants O&M 58,810 -
Insurance recoveries 891 8,802
Miscellaneous 14,405 190,404
Rents and leases 80,646 -
Net cash provided from noncapital financial activities 154,752 199,206
CASH FLOW FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Proceeds from sale of asset - 11,970
Acquisition and construction of capital assets (19,745,391) (1,277,491)
Principal paid on capital debt (2,950,073) -
Interest paid on capital debt (2,035,923) -
Loan proceeds received 94,149 -
Payments received from notes and loans 3,302,647 -
Transfers in (out) for capital 1,758,297 (451,762)
Capital charges 3,068,800 -
Capital grant and contribution proceeds 2,672,055 -
Net cash provided by (used for) capital and related financing activities (13,835,439) (1,717,283)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments 1,976,296 1,392,114
Interest on investments 22,695 13,512
Net cash provided from investing activities 1,998,991 1,405,626
Net increase (decrease) in cash and cash equivalents 2,092,217 2,175,379
Beginning cash and cash equivalents 42,621,815 15,746,862
Ending cash and cash equivalents 44,714,032 17,922,241
Reconciliation of operating income (loss) to net cash provided
(used) by operating activities:
Net Operating Income 8,965,000 1,182,029
Adjustment to reconcile operating income (loss) to net cash provided by (used for )
operating activities:
Depreciation expense 4,673,964 1,152,213
(Increase) decrease in customer receivables (75,997) -
(Increase) decrease in prepaid 84,315 -
(Increase) decrease in inventories (155,784) -
Increase (decrease) in accounts payable 1,318,517 88,009
Increase (decrease) in salaries & benefits payable 31,655 (436)
Increase (decrease) in closure payable 10,363 -
Increase (decrease) in interest payable (9,019) -
(Decrease) increase in accounts customer deposits payable 34,630 -
(Decrease) increase in compensated absences 32,266 -
(Increase) decrease in deferred outflows pensions (18,413) 12,354
(Increase) decrease in deferred outflows- debt refunding 4,409 -
Increase (decrease) in pension liability (1,011,009) (115,265)
Increase (decrease) in pension asset (2,951,907) (201,196)
Increase (decrease) in deferred inflow pension 2,692,521 170,122
Increase (decrease) in deferred inflow unavailable revenue 148,402 -
Net cash provided (used) by operating activities 13,773,913 2,287,830
NON CASH ACTIVITIES
Contributions of capital assets 2,796,952 33,056
Total noncash activities $ 2,796,952 $ 33,056
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Pension (and Other
Employee Benefit)
Trust Funds Custodial Funds
ASSETS
Cash and cash equivalents $ 598,348 $ 105,947
Receivables:
Customers - 68,291
Taxes - 164,172
Special assessments & loans 3,837 -
Investments at fair value:
Federal agency 6,700 -
Mutual funds 8,041,360 -
Total assets 8,650,245 338,410
LIABILITIES
Accounts payable - 288,766
Total liabilities - 288,766
NET POSITION
Restricted for:
Pensions 4,100,059 -
Postemployment benefits other than pensions 4,550,186 -
Total net position $ 8,650,245 $ 49,644
Statement of Fiduciary Net Position
December 31, 2021
The notes to financial statements are an integral part of this statement.
City of Pasco
Pension (and Other
Employee Benefit)
Trust Funds Custodial Funds
ADDITIONS
Sales tax collections or other governments $ 98,371 $ 788,711
Fees collected on behalf other agency - 441,687
Intergovernmental grans and other payments - 282,078
Investment income 1,619,396
Interest 807
Dividends 101,368 -
Total additions 1,819,942 1,512,476
DEDUCTIONS
Pension benefits 76,598 -
Medical premiums 87,540 -
Capital - 200,872
Payments of sales tax to other governments - 788,711
Fees remitted to agency - 441,687
Services 4,818 33,204
Total deductions 168,956 1,464,474
Net increase (decrease) in fiduciary net position 1,650,986 48,002
Net Position -- beginning of the year 6,999,259 1,642
Net Position -- end of the year $ 8,650,245 $ 49,644
City of Pasco
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 2021
The notes to financial statements are an integral part of this statement.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Pasco have been prepared in conformity with generally
accepted accounting principles (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 principles. The significant accounting policies
are described below.
A. Reporting Entity
The City of Pasco was incorporated on May 4, 1891 and operates under the laws of the state
of Washington applicable to a Non-Charter Code City with a Council/Manager form of
government. As required by the generally accepted accounting principles the financial
statements present City of Pasco as a primary government unit. The component unit discussed
below is included in the City reporting entity because of the significance of its operational
relationship with the City of Pasco.
The Pasco Public Facility district (PPFD) was created in 2002 pursuant to Chapter 35.57 of the
Revised Code of Washington for the purposes of acquiring, constructing, operating, and
financing one or more regional centers through cooperative and joint ventures with the City of
Kennewick. The PFD is discreetly presented in the component unit column in the government-
wide financial statements to emphasize that is a legally separate entity.
Complete separate financial statements for the District may be obtained from the City of Pasco,
P.O. Box 293, Pasco, WA 99301.
B. Basis of Presentation - Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all of the non-fiduciary activities of the primary government
and its component unit. For the most part, the effect of inter-fund activity has been removed
from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities which rely
to a significant extent on fees and charges for service.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Our policy is to allocate indirect costs to a
specific function or segment. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements or a particular function or segment. Taxes and other items
not properly included among program revenues are reported instead as general revenues.
As a general rule the effect of the inter-fund activity has been eliminated from the government–
wide financial statements. Exceptions to this rule include business taxes the utilities pays to
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
the general fund, internal service fund activities in which outside parties are engaged and
certain other service functions between funds, that if eliminated may misrepresent the cost
reported for various other functions of the government.
Separate fund financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds. Major individual governmental funds and major individual enterprise funds
are reported as separate columns in the fund financial statements.
The City of Pasco reports the following major governmental funds:
• The General Fund: The General (or current expense) Fund is the City of Pasco’s primary
operating fund. It accounts for all financial resources of the general government, except those
required or elected to be accounted for in separate fund.
• The Construction Fund: The Construction Fund is a capital project fund used to account for
significant construction and capital acquisition related to governmental activities.
• ARPA Fund: The ARPA fund is used to account for all activities related to the Federal funds
received for the Coronavirus State and Local Fiscal Recovery Funds under the American Rescue
Plan Act of 2021. This includes subrecipient grants issued by the City and City use of the funds.
The City of Pasco reports the following major proprietary fund:
• The Water/Sewer Fund: The Water/Sewer Fund accounts for water, sewer, water reuse, storm
water and irrigation utilities activities.
Additionally, the City of Pasco reports the following fund types:
• Special Revenue funds are used to account for specific revenue sources that are restricted,
committed, or assigned to expenditures for a particular purpose.
• Debt Services funds are used to account for the resources accumulated and payments made for
principal and interest on long–term general obligation debt of governmental funds. These funds
include the Local Improvement Districts (LID) Guarantee fund which provides financial security
for outstanding LID bonds.
• Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, not principal, may be used for purposes of supporting a specific City program. The
City has one permanent fund, Cemetery Perpetual Care Fund.
• Internal Service funds are used to account for equipment replacement and operations, central
stores, as well as medical/dental insurance services provided to other departments on a cost -
reimbursement basis.
• Pension Trust funds are used to account for the sources and uses of funds to meet the pension
benefit and other post-employment benefit obligations made to firemen covered under the Plan
prior to the creation of the Law Enforcement Officers and Fire Fighters’ (LEOFF) pension
system in 1970.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
• Custodial funds are used to report resources held by the city in a purely custodial capacity on
behalf of the State Administrative Office of the Courts, Animal Control Authority and Pasco
Public Facility District.
C. Measurement Focus, Basis of Accounting
Government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are considered to
be available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the City considers revenues to be available if
they are collected within 60 days of the end of the current fiscal period. The City considers
property taxes as available if they are collected within 60 days after year end. Expenditures
generally are recorded when a liability is incurred under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences, claims and
judgements are recorded only when payment is due.
Property taxes, licenses, and associated interest within the current period are all considered to
be susceptible to accrual and have so been recognized as revenues of the current period. Only
the portion of a special assessment receivable due within the current fiscal period is considered
to be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the City.
Proprietary fund financial statements are reported using the economic resources measurement
focus and full-accrual basis of accounting. Revenues are recorded when earned and expenses
are recorded when a liability is incurred regardless of the timing of the cash flows. Proprietary
funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services, producing, and delivering
goods in connection with a proprietary fund’s principal ongoing operations. The principal
operating revenues of the Water/Sewer Fund are charges to customers. The major services
provided by the proprietary fund are water, sewer, storm drain, irrigation and industrial
wastewater processing. Operating expenses for enterprise funds and internal service funds
include the cost of sales, services and administrative expenses, and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
D. Budgetary Information
Scope of Budget
Biennial appropriated budgets are adopted for the general fund and special revenue funds on a
modified accrual basis. Budgets for debt service and capital project funds are adopted at the level
of the individual debt issue or project and for fiscal periods that correspond to the lives of debt
issues or project and for fiscal periods that correspond to the lives of debt issues or projects. The
City also adopts appropriated budgets for proprietary and internal service funds as “management
budgets”. All budgets are adopted at the fund level.
Appropriations for all funds lapse at the end of the biennium. Budgets for capital outlays are
re-appropriated until the purpose of the appropriation has been accomplished or abandoned.
Amending the Budget
The City Manager is authorized to transfer budgeted amounts within the funds. However, any
revisions that alter the total appropriations of a fund, or which affects the number of authorized
employee positions, salary ranges, hours, or other conditions of employment must be approved
by the City Council.
When City Council determines it is in the best interest of the City of Pasco to increase or
decrease the appropriation for a particular fund, it may do so by ordinance approved by one
more than the majority after holding public hearing(s).
The budget amounts shown in the financial statements are the final authorized amounts as
revised during the year.
The financial statements contain the original and final budget information. The original budget
is the first complete appropriated budget. The final budget is the original budget adjusted by all
reserves, transfers, allocations, supplemental appropriations, and other legally authorized
changes applicable for the fiscal year.
Excess of Expenditures over Appropriations
Neither the General Fund, nor any major special revenue funds, reported expenditures in excess
of budgeted appropriation.
Deficit Fund Net Position
The LID Loan Fund a debt service fund of the City, ended the year with a negative fund balance
of ($176,517). The negative fund balance is a result of required accounting practices. Previously
most LIDs were financed with a bond issue which is not reflected on the balance sheet of the
governmental fund. The current LIDs are financed with inter-fund loans which are recorded as
a loan payable on the balance sheet. Since GASB requires future principal payments to be
recorded as deferred inflows on the balance sheet. Both items are recorded on the liability side
of the balance sheet with only the LID assessments receivable on the asset side. The result is
almost always a negative net position for the fund. The deficit fund balance will be corrected as
the loans are paid off.
The Rivershore Trail & Marina Maintenance Fund, a nonmajor special revenue fund of the City,
ended the year with a negative fund balance of ($51,137). The negative fund balance is a result
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
of the need to rebuild a marina dock due to weather related damage. There is an outstanding
inter-fund loan liability used to fund the repairs.
The Animal Control Fund, a nonmajor special revenue fund of the City, ended the year with a
negative fund balance of ($40,903). The negative fund balance is a result of operation expenses
exceeding revenues.
E. Assets, Liabilities, Deferred Inflows, Deferred Outflows, Fund Balance/Net Position
1. Cash and Cash Equivalents
It is the City’s policy to invest temporary cash surpluses. As of December 31, 2021, the City
had invested $ 58,113,362 with the Washington State Local Government Investment Pool
(LGIP). These investments are short-term investments of residual cash. This amount is
classified on the Statement of Net Position as cash and cash equivalents. The interest earned
on these investments is prorated to the various funds based upon their ownership of invested
cash.
For purposes of the statement of cash flows, the City considers all highly liquid investments
(including restricted assets) with a maturity of three months or less when purchased to be cash
equivalents.
2. Investments See (Note 3, Deposits and Investments)
3. Receivables
Tax receivables consist of property taxes, sales taxes, business and occupation taxes, gambling
taxes and excise taxes. Property taxes are levied January 1 on property values assessed as of
December of the prior year. The tax levy is divided into two billings with the first billing due
April 30 and the second is due October 31. Detailed information on property tax can be found
in Note 4.
Special assessments are levied against certain property owners when their property is the
beneficiary of a city managed project. Based upon each property’s proportional share of the
improvement an assessment is levied. When levied a receivable in recorded. Special
assessments receivable consists of current, any delinquent assessments along with related
interest and penalties. As of December 31, 2021, $33,151 of special assessments receivable
were delinquent.
Customer accounts receivables consist of amounts owed from private individuals or
organizations for goods and services, including amounts owed for which billings have not been
prepared. Uncollectible amounts, except in two instances, are considered immaterial and the
direct write-off method is used. The exceptions are in the ambulance fund and revolving
abatement fund. An allowance is calculated based on historical write-offs. The total allowance
recorded city wide as of December 31, 2021, is $332,669.
Other receivables include municipal court receivables related to legal fines and charges and
amounts due the City related to organizations or public entities with which the City has entered
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
contractual relationships. The municipal court receivable is $10,636,486 of which $9,808,968
is not expected to be collected. Only the net receivable of $827,518 is recorded in the financial
statements. The portion that is calculated as uncollectible is based upon the year’s collection
rate. Of the receivables derive based upon contractual relationships they are the result of the
provision of working funds or activity that created revenues that the City had not received as
of year-end 2021
4. Amounts Due to and from Other Governments, Inter-fund Loans and Advances Receivable
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either inter-fund loans
receivable/payable or advances to/from other funds. All other outstanding balances between
funds are reported as due to/from other funds. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide
financial statements as internal balances. A separate schedule of inter-fund loans receivable
and payable is furnished in Note 6, Inter-fund Balances and Transfers.
Advances between funds, as reported in the fund financial statements, are offset by a fund
balance reserve account in applicable governmental funds to indicate that they are not
available for appropriation and are not expendable available financial resources.
5. Inventories
Inventories in governmental funds consist of expendable supplies held for consumption. The
cost is recorded as an expenditure at the time purchase. There are currently no inventories in
governmental funds. Inventories in proprietary funds consist of materials and supplies used in
both maintenance and capital activities. Inventories in proprietary funds are valued using a last
in first out (LIFO) method.
6. Restricted Assets and Liabilities
In accordance with utility bond ordinances, state law, or other agreements, separate restricted
assets have been established. These accounts contain resources for construction and debt
service, including current and delinquent special assessments receivable, in enterprise funds.
The current portion of related liabilities is shown as Payables from Current Restricted Assets.
Specific debt service reserve requirements are described in Note 8, Long-Term Debt.
The restricted assets of the governmental funds are composed of the following:
Customer Deposit 579,661$
Permit and Plan Check 2,488,199
Unspent Bond Proceeds 5,261,812
Debt Service 417,951
Programs, Grants and Donations 15,872,339
24,619,962$
Restricted Assets and Liabilities - Government Funds
For Year Ending 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The restricted assets of the enterprise funds are composed of the following:
7. Capital Assets
Capital assets, which include property, plant, and equipment and infrastructure assets, are
reported in the applicable governmental or business-type columns in the government-wide
financial statements. Capital assets, other than infrastructure, are defined by the city as assets
with an initial individual cost of more than $5,000 and an estimated useful life in excess of two
years. Useful life estimates are periodically reassessed and adjusted based on actual experience
and/or asset condition assessments. See Note 5, Capital Assets and CWIP for details on
changes to useful life and depreciation. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at acquisition
value at the date of donation.
The city reports infrastructure assets on a network and subsystem basis. Such assets are
recorded at historical cost if purchased or constructed. Additions, improvements and other
capital outlays that significantly extend the useful life of an asset are capitalized. The cost of
normal maintenance and repairs and street preservation activities that do not add to the value
of the asset or materially extend asset lives are not capitalized. Assets are depreciated over
their useful lives using the straight-line depreciation method.
Major outlays for capital assets and improvements are reported as Construction Work in
Progress as projects are constructed. Interest, if material to the cost of the asset that is incurred
during the construction phase of the capital assets of business-type activities is included as part
of the capitalized value of the assets constructed. Capital Assets and improvements are
capitalized once the project is completed.
Customer Deposit 503,815$
Unspent Bond Proceeds 4,697,953
Debt Service 484,754
5,686,522
Capital Development:
Water/Sewer Capital Expansion Contribution 11,174,847
Water Rights 1,395,285
12,570,132
18,256,654$
Restricted Assets and Liabilities - Enterprises Funds
For Year Ending 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Capitalization thresholds, the dollar value above which an asset acquisitions are added to the
capital asset accounts and estimated useful lives of capital assets are as follows:
8. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net position that applies to a future period(s) and so
will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future period(s)
and will not be recognized as an inflow of resources (revenue) until that time.
The city has one type of item, unavailable revenues, which arises only under a modified accrual
basis of accounting, which qualifies as a deferred inflow. Unavailable revenue is reported only
in the governmental funds balance sheet. The governmental funds report unavailable revenues
for 2021 as follows:
a. Uncollected property taxes levied.
b. Unbilled special assessments levied against benefited property for the cost of local
improvements. An allowance for uncollectible accounts is not necessary since the
assessments are liens against the property benefited.
c. Grant funds received in advance.
d. Certain headstones and liner sales by the cemetery which obligate the city to future
services.
e. CDBG Loans Unbilled Principal.
f. Uncollected Municipal Court Fines outstanding.
In addition to unavailable revenues, changes in pension assumptions and calculation
variables also create deferred inflows and deferred outflows. These are reported in
the enterprise funds and at the government wide level in the Statement of Net
Position.
Assets
Useful Lives
(Years)
Land N/A
Building & Structures 5-50
Other Improvements 5-100
Machinery & equipment & vehicles 2-50
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
9. Compensated Absences
The city accrues accumulated unpaid vacation and sick leave and associated employee related
costs when earned (or estimated to be earned) by the employee. All vacation and sick pay is
accrued when incurred in the government-wide, proprietary, and fiduciary fund financial
statements. In governmental funds, such amounts are not accrued using the modified accrual
basis of accounting but are reported as a liability in the government-wide financial statements.
City-wide, excluding Firefighters and Police
Sick leave may be accumulated up to a maximum of 960 hours for all employees except
firefighters and police. Upon resignation, retirement or death; sick leave is payable at a rate of
25% of accrued hours up to a maximum accrual base of 720 hours. Vacation leave may be
accumulated up to a maximum of one and a half times the employee’s annual vacation accrual
rate and is payable upon resignation, retirement or death.
Firefighters
Sick leave may be accumulated up to a maximum of 1,440 hours. For firefighters with less than
20 years of service with the City, sick leave is payable at a rate of 25% of accrued hours up to
a maximum accrual base of 840 hours, upon resignation, retirement or death. For firefighters
with 20 years or more of service with the city, sick leave is payable at a rate of 50% of accrued
hours up to a maximum accrual base of 840 hours. Vacation leave may be accumulated up to a
maximum of two times the employee’s annual vacation accrual rate and is payable upon
resignation, retirement or death.
Police
Sick leave may be accumulated up to a maximum of 1,200. Upon resignation or death; sick
leave is payable at a rate of 25% of accrued hours up to a maximum accrual base of 720 hours.
Upon retirement, sick leave is payable at a rate of 35% up to a maximum of 1,200 hours.
Vacation leave may be accumulated up to a maximum of two times the employee’s annual
vacation accrual rate and is payable upon resignation, retirement or death.
9. Pensions and OPEB
For purposes of measuring the net pension liability or asset, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of all state sponsored pension plans and additions to/deductions from
those plans’ fiduciary net position have been determined on the same basis as they are reported
by the Washington State Department of Retirement Systems. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable
in accordance with the benefit terms. Investments are reported at fair value.
For purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pension, and pension expense information about the
fiduciary net position of the City's Old Fireman’s' Pension Fund — 610 (the Plan) and additions
to/deductions from the Plan's fiduciary net position have been determined on the same basis as
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
they are reported by the Plan. For this purpose, the Plan recognizes benefit payments when due
and payable in accordance with the benefit terms.
For purposes of measuring the total OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and OPEB expense information of the City’s
LEOFF 1 Retire Health Plan (the Plan) have been determined on the same basis as they are
reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and
payable in accordance with the benefit terms.
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred
inflows of resources related to OPEB, and OPEB expense information about the fiduciary net
position of the City's Old Firemen’s Pension Fund (the Plan) and additions to/deductions from
the Plan's fiduciary net position have been determined on the same basis as they are reported
by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in
accordance with the benefit terms
10. Long-term Obligations
In the government-wide statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statements of net
position.
Bond premiums and discounts when material, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of the applicable
bond premium or discount.
In the fund financial statements governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing uses. Issuance costs, whether withheld from actual debt proceeds received
or not, are reported as professional service costs.
11. Fund Balance and Fund Flow Policies
Fund balance of governmental funds is reported in various categories based on the nature of
any limitations requiring the use of resources for specific purposes. The government itself can
establish limitations on the use of resources through either a commitment (committed fund
balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only for specific
purposes determined by formal action of the government’s highest level of decision-making
authority. The city council is the highest level of decision-making authority for the government
that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance.
Once adopted, the limitation imposed by the ordinance remains in place until a similar action
is taken (the adoption of another ordinance) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the government
for specific purposes but do not meet the criteria to be classified as committed. The council
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
may also assign fund balances, as it does when appropriating fund balances, to cover a gap
between estimated revenue and appropriations in the subsequent year’s appropriated budget.
Unlike commitments, assignments generally only exist temporarily. In other words, an
additional action does not normally have to be taken for the removal of an assignment.
Conversely, as discussed above, an additional action is essential to either remove or revise a
commitment.
The city has not adopted a specific flow of funds policy relating to the use of restricted and
unrestricted resources when both are available. Therefore, the statements are prepared using
the default option provided in GASB 54 which provides, that when both restricted and
unrestricted resources are available, restricted resources are used first. While the city has not
formally established a policy for its use of unrestricted fund balance amounts, committed
amounts would be reduced first, followed by assigned amounts, and then unassigned amounts
when expenditures are incurred for purposes for which amounts in any of these unrestricted
fund balance classifications could be used.
In the fund financial statements, governmental funds report restrictions of fund balance as
follows:
Nonspendable fund balance - includes amounts that are not in spendable form such as inventory
or are required to be maintained intact such as the principal of a permanent fund.
Restricted fund balance - includes amounts that can be spent only for the specific purpose
stipulated by external resource providers such as for grant providers, bondholders, higher levels
of government, or through enabling legislation.
Committed fund balance – includes amounts that can be used only for the specific purposes
determined by a formal action of the city council. Commitments may be changed or lifted only
by the city council taking the same formal action that imposed the constraint originally.
Assigned fund balance – includes amounts intended to be used by the government for specific
purposes. Intent can be expressed by the governing body or by an official designated by the
governing body to which the governing body designates authority.
Unassigned fund balance - includes the residual classification for the General Fund and
includes all spendable amounts not contained in the other classifications. The General Fund is
the only governmental fund that reports a positive unassigned fund balance amount. In other
funds, the unassigned classification will be used only to report a deficit balance resulting from
overspending for specific purposes for which amounts had been restricted, committed, or
assigned.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTE 2: RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
A. Explanation of certain differences between the governmental funds balance sheet and the
government-wide statement of net position.
The governmental fund balance sheet includes a reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the government-
wide statement of net position. One element of that reconciliation explains that “Long-term
assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds”. The following shows the detail of these capital asset changes net of
accumulated depreciation:
Joint Venture 1,440,863$
Land 23,877,045
Construction in process 20,369,616
Building 34,574,138
Other Improvements 3,561,348
Equipment 3,667,582
Infrastructure 189,202,700
Pension Assets 12,985,759
OPEB Assets 2,494,698
Current year Prior Period Adjustment (709,424)
Current year change in pension asset 28,717,548
Current year change in OPEB asset 1,404,942
Current year spending in construction work in progress 23,511,793
Current year sale of capital assets (339,892)
Current year capital purchases 362,041
Current year capital donations received 7,729,295
Current year increase in Joint Venture 61,511
Current year depreciation (18,847,550)
Net adjustment to add to government wide fund balance to arrive at
Net Position Governmental Activities 334,064,013$
Beginning Balance of Capital Asset Excluded from Fund Level:
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Compensated absences (4,082,061)$
OPEB obligation (12,969,448)
Pension obligation (3,088,440)
Bonds payable (24,795,000)
Bond premium (4,188,241)
Current year changes to compensated absences liabilties (82,926)
Current year changes to pension obligation 2,402,796
Current year changes to OPEB obligation 2,364,056
Current year premium reduction 151,850
Issuance of new debt (3,781,000)
Current year principal payments reducing debt 1,065,000
Net adjustment to reduce government wide fund balance to arrive at
Net Position Governmental Activities (47,003,414)$
Another element of that reconciliation explains the "Long-term liabilities are not due and payable
in the current and are not reported in the funds. The following show the detail of these liability
changes.
Beginning Balance of Long-Term Liabilities Excluded from Fund Level:
Deferred pension outflows 2,700,104$
Current year change in deferred pension outflow 1,010,638
Net adjustment to add to government wide fund balance to arrive at
Net Position Governmental Activities 3,710,742$
Beginning Balance of Deferred Outflows Excluded from Fund Level:
Beginning Balance of Deferred Inflows Excluded from Fund Level:
Deferred pension inflows (3,184,809)$
Deferred OPEB inflows (227,501)
Current year change in pension related deferred inflows (21,992,371)
Current year change in OPEB related deferred inflows (486,591)
Net adjustment to add to government wide fund balance to arrive at
Net Position Governmental Activities (25,891,272)$
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
B. Explanation of certain differences between the governmental funds statement of
revenues, expenditures, and changes in fund balances and the government -wide
statement of activities
The governmental funds’ statement of revenues, expenditures and changes in fund balances
includes reconciliation between net changes in fund balances – total governmental funds and
changes in net position of governmental activities as reported in the government-wide
statement of activities. The first element of that reconciliation relates to capital activity as
follows:
Cash and equivalents 9,814,614$
Restricted cash - Self Insurance 1,990,838
Investments 2,265,669
Receivables 12
Net pension asset -
Machinery and equipment 5,201,851
Construction in progress 155,750
Deferred pension outflows 39,476
Accounts payable (340,605)
Pension liabilities (134,462)
Deferred pension inflows (38,854)
Change in current year assets (91,257)
Change in current year liabilities (84,412)
Eliminate interfund loan (3,285,272)
Change in deferred inflows (170,122)
Net adjustment to reduce government wide fund balance to arrive at
Net Position Governmental Activities 15,323,226$
Effect of Internal Service Fund Government Type Activity on Statements:
Land -$
Building & Structure
Construction in process 23,511,794
Machinery and equipment 362,041
Contributed capital assets 7,729,295
Current year depreciation (18,847,550)
Gain on Joint venture 61,511
Net capital activity 12,817,091
New Debt issued 3,781,000$
Debt repayment (1,216,851)
Net debt activity 2,564,149$
The second element of that reconciliation related to debt activity as follows
Capital outlays for:
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTE 3: DEPOSITS AND INVESTMENTS
Summary of Deposit and Investment Balances
Reconciliation of the City’s deposits and investment balances as of December 31, 2021, is as
follows:
Deposits
Custodial Credit Risk
Custodial credit risk for deposits is the risk that in the event of a failure of a depository financial
institution, the City would not be able to recover deposits or will not be able to recover collateral
securities that are in possession of an outside party. The City’s deposits and certificates of deposit
are mostly covered by federal depository insurance (FDIC) or by collateral held in a multiple
financial institution collateral pool administered by the Washington Public Deposit Protection
Commission (WPDPC). The FDIC insures the first $250,000 of the City’s deposits. The deposit
balances over $250,000 are insured by the WPDPC. The City does not have a deposit policy for
custodial credit risk beyond the requirements of state statute. Washington State law restricts deposit
of funds to financial institutions physically located in Washington unless otherwise expressly
permitted by statute and authorized by the WPDPC. State statute permits additional amounts to be
assessed on a pro rata basis to members of the WPDPC pool in the unlikely event the pool’s
collateral should be insufficient to cover a loss.
Investments
It is the City’s policy to invest all temporary cash surpluses. The interest on these investments is
distributed to the various funds. Investments are stated at fair value based on quoted market prices
in accordance with GASB Statement No. 72, Fair Value Measurement and Application.
Accordingly, the change in the fair-value of investment is recognized as an increase or decrease to
the investment assets and investment income. Interest income on investments is recognized in non-
operating revenue as earned. Changes in fair value of investments are recognized on the statements
of Revenues, Expenses, and Changes in Net Position. Investments are subject to the following
risks.
Government Wide Fiduciary Funds
Cash on hand 7,550$ -$
Deposits with private financial institutions 78,810,580 598,348
Deposits in transit 154,015 -
Outstanding checks (2,416,780) -
Deposits in state LGIP 58,113,362 -
Total Deposits 134,668,727 598,348
Investments 10,162,063 8,048,060
Total Investments 10,162,063$ 8,048,060$
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Interest Rate Risk
Interest Rate Risk is the risk the City may face should interest rate variances affect the fair value
of investments. In accordance with its investment policy, the City manages its exposure to declines
in fair value by limiting the maturity of investments. To achieve its financial objective of
maintaining liquidity to meet all operating requirements, the City typically selects investments that
have shorter average maturities.
The following table depicts Weighted Average Maturity (WAM) for all City investments with
maturities, by number of months. In addition to the interest rate risk disclosed below, the City
includes investments with fair value highly sensitive to interest rate changes.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. State law and the City investment policy limit investments to those authorized by State
Statute. The City of Pasco holds investments in U.S. Government Agency Securities, the Local
Government Investment Pool (LGIP) and demand deposits at U.S. Bank. The investment policy
for “credit risk” does not extend beyond the types of authorized investments and the concentration
of credit risk described below. As of December 31, 2021, the City’s investments in agency
securities were all rated AAA. The LGIP is not rated and registered with the SEC and the fair value
of the city’s position in the pool is the same as the value of the pool shares. The LGIP is regulated
by the state of Washington’s state finance committee in accordance with RCW 43.250. Credit risk
is limited as most investments are either obligations of the U.S. Government, government
sponsored enterprises, insured demand deposit accounts or certificates of deposit.
Investment Type Fair Value Less than 1 year 1 to 5 years 6 to 10 years
% of Total
Portfolio
SBA Participation 35,822$ -$ -$ 35,822$ 0.35%
Federal Farm Credit Bank 5,004,671 5,004,671 - 49.25%
Federal Home Loan Bank 1,968,456 - 1,968,456 - 19.37%
Federal National Mortgage Association 3,153,113 - 3,153,113 - 31.03%
Total Debt Securties 10,162,063$ -$ 10,126,240$ 35,822$ 100.00%
Maturity Date
# of Months to
Maturity
Fair Market
Value as
12/31/21 % of total WAM
02/01/2027 61 35,822$ 0.35% 0.215032
11/25/2024 35 1,968,456 19.37% 6.779722
01/19/2023 13 2,173,820 21.39% 2.780899
06/17/2025 30 979,293 9.64% 2.891026
12/01/2025 36 2,002,046 19.70% 7.092424
01/24/2024 25 3,002,625 29.55% 7.386849
33 10,162,063$ 100.00% 27.145951
Calculation of Weighted Average Maturity (WAM)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s
investment in a single issuer. It is the policy of the city to diversify its investment portfolio to
eliminate the risk of loss resulting from overconcentration of assets in a specific class of securities.
The table below identifies the types of investments, concentration of investments in any one issuer,
and maturities of the City's investment portfolio as of December 31, 2021.
Local Government Investment Pool
The city is a participant in the Local Government Investment Pool, which was authorized by
Chapter 294, Laws of 1986, and is managed and operated by the Washington State Treasurer. The
State Finance Committee is the administrator of the statute that created the pool and adopts rules.
The State Treasurer is responsible for establishing the investment policy for the pool and reviews
the policy annually and proposed changes are reviewed by the LGIP advisory Committee.
Investments in the LGIP, a qualified external investment pool, are reported at amortized cost which
approximates fair value. The LGIP is an unrated external investment pool. The pool portfolio is
invested in a manner that meets the maturity, quality, diversification, and liquidity requirements
set forth by the GASB 79 for external investments pools that elect to measure, for financial
reporting purposes, investments at amortized cost. The LGIP does not have any legally binding
guarantees of share values. The LGIP does not impose liquidity fees or redemption gates on
participant withdrawals. For GASB reporting purposes funds in the LGIP are reported as cash
equivalents.
The Office of the State Treasurer prepares a stand-alone LGIP financial report. A copy of the report
is available from the Office of the State Treasurer, PO Box 40200, Olympia, Washington 98504-
0200, online at http://www.tre.wa.gov.
ISSUER
*FAIR VALUE AT
12/31/21 PERCENTAGE
SBA Participation 35,822$ 0.35%
Federal Farm Credit Bank 5,004,671 49.25%
Federal Home Loan Bank 1,968,456 19.37%
Federal National Mortgage Association 3,153,113 31.03%
TOTAL 10,162,063$ 100%
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Investments Reported as Cash Equivalents as of December 31, 2021
Amortized Cost Less than 1 Year
Local Government Investment Pool $58,113,362 $58,113,362
In addition to the City of Pasco investments presented in the series of tables following this section,
the City’s Old Fire Pension and Old Fire OPEB Funds report the following investments in their
Trust Funds:
Investments Measured at Fair Value
The City measures and reports investments at fair value using the valuation input hierarchy
established by Generally Accepted Accounting Principles (GAAP), as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: These are quoted market prices for similar assets or liabilities, quoted prices for
identical or similar assets or liabilities in markets that are not active, or other than
quoted prices that are not observable.
Level 3: Unobservable inputs for an asset or liability.
Safekeeping for the City’s investments is provided by U.S. Bank. U.S. Bank contracts with
Independent Directors Council (IDC) to provide fair market values of investments monthly. The
pricing methodology varies depending on multiple components, including if an investment is being
actively traded. In depth pricing methodology is available from IDC.
As of December 31, 2021, the City had the following investments measured at fair value:
Old Fire Pension Trust Fund Investments FMV 12/31/21 Interest Rate Maturity
Small Business Admn Participation SBAP 6,700$ 5.37% 10/1/2026
The Investment Co. of America Mutual Funds 3,540,655 *Varies N/A
Total 3,547,355$
*YTD Return 19.74%
Old Fire OPEB Trust Fund Investments FMV 12/31/21 Interest Rate Maturity
WAMU Investors Fund A Mutual Funds 4,500,705$ *Varies N/A
Total 4,500,705$
*YTD Return 20.19%
Quoted Prices
Active Markets
for Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
12/31/2021 (Level 1)(Level 2)(Level 3)
Investment by Fair Value Level
U.S. Government Agency Securities 10,162,063$ -$ 10,162,063$ -$
Total Investments measured at fair value 10,162,063 - 10,162,063 -
Total Investments in Statement of Net Position 10,162,063$
Fair Value Measurement Using
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTE 4: PROPERTY TAXES
The county treasurer acts as an agent to collect property taxes levied in the county for all taxing
authorities. Collections are distributed by the 10th day of the following month.
Property taxes are recorded as a receivable and revenue when levied, offset by deferred revenue.
Property tax collected in advance of the fiscal year to which it applies is recorded as a deferred
inflow and recognized as revenue of the period to which it applies. No allowance for
uncollectible tax is established because delinquent taxes are considered fully collectible. Prior
year tax levies were recorded using the same principle and delinquent taxes are evaluated
annually. As of 12/31/21 delinquent taxes totaled $119,831.
The City may levy up to $3.60 per $1,000 of assessed valuation for general governmental services
subject to two limitations:
a. Chapter 84.55.010 of the Revised Code of Washington limits the growth of non-voted
property taxes to the lesser of 1% per year, or the Implicit Price Deflator. Adjustments
for new construction and annexations are excluded from this calculation.
b. The Washington State Constitution limits the total regular property taxes to one percent
of assessed valuation or $10 per $1,000 of value. If the taxes of all districts exceed this
amount, each is proportionately reduced until the total is at or below the one percent
limit.
The City’s regular levy for 2021 was $1.6842 per $1,000 on an assessed valuation of
$6,798,396,835. This resulted in a total regular levy of $11,449,859,950 for 2021. The City did not
levy any taxes for special levies in 2021.
January 1 Taxes are levied and become an enforceable lien against properties.
February 14 Tax bills are mailed.
April 30 First of two equal installment payments is due.
May 31 Assessed value of property established for next year's levy at 100% of market value.
October 31 Second installment is due.
Property Tax Calendar
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTE 5: CAPITAL ASSETS AND CWIP
Capital asset activity for the year ended December 31, 2021, was as follows:
In 2021, it was determined work originally anticipated to be capital in nature, amounting to $1,950
was cancelled. Accumulated depreciation totaling $696,137 in 2020 was not calculated. The total
effect of prior period adjustments to governmental activities was $698,087. See note 18 for details.
Governmental Activities:
Beginning
Balance
01/01/21
Prior Period
Adjustments
Adjusted
Beginning
Balance
01/01/21
Current Period
Increases
Current Period
Decreases
Ending Balance
12/31/21
Capital assets, not being depreciated
Land 23,877,045$ -$ 23,877,045$ 658,085$ 339,892$ 24,195,238$
Construction in progress 20,525,366 (1,950) 20,523,416 23,511,793 18,609,345 25,425,864
Total capital assets, not being depreciated 44,402,411 (1,950) 44,400,461 24,169,878 18,949,237 49,621,102
Capital assets, being depreciated:
Building & structure 50,017,826 - 50,017,826 14,220,857 - 64,238,683
Other improvements 7,406,165 - 7,406,165 1,440,748 - 8,846,913
Machinery and equipment 19,260,281 - 19,260,281 2,447,397 66,820 21,640,858
Infrastructure 306,785,386 - 306,785,386 7,933,595 - 314,718,981
Total capital assets being depreciated 383,469,658 - 383,469,658 26,042,597 66,820 409,445,435
Less accumulated depreciation:
Building & structure 15,443,688 - 15,443,688 1,222,215 - 16,665,903
Other improvements 3,844,817 - 3,844,817 292,997 - 4,137,814
Machinery and equipment 10,390,845 696,137 11,086,982 1,327,389 66,820 12,347,551
Infrastructure 117,582,689 - 117,582,689 16,004,949 - 133,587,638
Total accumulated depreciation 147,262,039 696,137 147,958,176 18,847,550 66,820 166,738,906
Total capital assets, being depreciated, net 236,207,619 (696,137) 235,511,482 7,195,047 - 242,706,529
Governmental activities capital assets net 280,610,030$ (698,087)$ 279,911,943$ 31,364,925$ 18,949,237$ 292,327,631$
Construction in process (1,950)$
Total capital asset, not being depreciated (1,950)
Accumulated depreciation (696,137)
Total capital assets, not being depreciated (1,950)
Accumulated depreciation (696,137)
Total prior period (698,087)$
Prior Period Adjustment to Capital Governmental type activities
Fiscal year ended 12/31/2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
In 2021, it was determined that a water funded project was cancelled in the amount of $26,488.
Additionally, in the reuse fund work originally anticipated to be capital in nature, amounting to
$378,774, was determined instead to be facility maintenance. In the reuse facility land asset was
added twice, one in 2018 & 2020. In 2021 one was removed from asset management system and
added back to CWIP in the amount of $301,743. The city conducted inventory assessment of
existing capital assets and their remaining useful lives. The study included condition assessments,
information from capital asset planning and timing of scheduled asset replacements as well as new
information regarding the longevity of assets. This increase to accumulated depreciation in
business-type funds in the amount of $227,777 was due to 2020 depreciation error.
Business Type Activities:
Beginning
Balance
01/01/21
Prior Period
Adjustments
Adjusted
Beginning
Balance
01/01/21
Current Period
Increases
Current Period
Decreases
Ending Balance
12/31/21
Capital assets, not being depreciated
Land 3,882,418 (301,743) 3,580,675 690,718 - 4,271,393
Construction in process 18,494,884 (103,519) 18,391,365 19,038,219 24,554,696 12,874,888
Total capital assets, not being depreciated 22,377,302 (405,262) 21,972,040 19,728,937 24,554,696 17,146,281
Capital assets, being depreciated:
Building & structure 70,336,215 - 70,336,215 19,599,773 2,114,847 87,821,141
Other Improvements 515,578 - 515,578 68,027 - 583,605
Machinery and equipment 18,223,626 - 18,223,626 147,442 467,583 17,903,485
Infrastructure 182,739,642 - 182,739,642 7,385,926 163,305 189,962,263
Total capital assets being depreciated 271,815,061 - 271,815,061 27,201,168 2,745,735 296,270,494
Less accumulated depreciation:
Building & structure 24,716,341 - 24,716,341 1,575,961 2,114,847 24,177,455
Other Improvements 19,550 - 19,550 13,091 - 32,641
Machinery and equipment 8,682,981 227,777 8,910,758 (696,039) 467,583 7,747,136
Infrastructure 43,781,127 - 43,781,127 4,108,161 163,305 47,725,983
Total accumulated depreciation 77,199,999 227,777 77,427,776 5,001,174 2,745,735 79,683,215
Total capital assets, being depreciated, net 194,615,062 (227,777) 194,387,285 22,199,994 - 216,587,279
Business activities capital assets net 216,992,364$ (633,039)$ 216,359,325$ 41,928,931$ 24,554,696$ 233,733,560$
Land (301,743)$
Water (26,488)
PWRF 301,743
PWRF (378,774)
Construction in process total Capital assets, not being depreciated (103,519)
Accumulated depreciation (227,777)
(227,777)
Capital business type activities total (633,039)$
Fiscal year ended 12/31/2021
Prior Period Adjustment to Capital Business type activities
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Depreciation expense by function:
Construction commitments
The City of Pasco has active construction projects as of December 31, 2021. The projects include
street construction and various utility related projects. At year end, the city’s commitments with
contractors are as follows:
NOTE 6: INTER-FUND BALANCES AND TRANSFERS
Inter-fund loans
The composition of inter-fund loan balances as of December 31, 2021 are presented in the
following table. These loans are included in the fund financial statements but eliminated from the
government wide statement of net assets because they are internal borrowings. There are also one
day loans from the general fund totaling $5,538,136 for funds with negative cash at year end that
are classified as due from transactions on the balance sheet governmental funds.
General government 557,447$
Public Safety 1,022,963
Transportation 16,080,712
Economic environment 178,268
Culture & recreation 1,008,160
Total depreciation expense - governmental activities 18,847,550$
Governmental activities:
Water 900,359$
Irrigation 622,796
Sewer 2,466,314
Process water reuse facility 809,652
Stormwater 202,053
Total depreciation expense- business-type activities:5,001,174$
Business-type activities:
CATEGORY PROJECT NAME SPENT TO
DATE
REMAINING
COMMITME
NT
Streets Argent Road Widening Ph.1 566,447$ 1,444,902$
Streets Lewis Street Overpass 5,107,292 17,237,707
Streets Rd 68 Widening 146,557 152,237
Culture & Recreation Peanuts Park 4,966,815 885,708
Sewer WWTP Improvements Ph. 1 4,027,117 13,910,670
Process Water Resource Facility Columbia East Force Main 6,340,155 5,985,058
Process Water Resource Facility Grimmway Wastwater Connection 260,675 260,675
Process Water Resource Facility Grimmway Connection Ph. 2 68,148 66,377
21,483,207$ 39,943,335$ TOTAL
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The composition of due to and due from balances as of December 31, 2021 are presented in the
following table.
Inter-fund transfers
Transfers between funds during the year ended December 31, 2021 are as follows:
Transfers are used to 1) move unrestricted general fund revenues to finance various programs that
the government must account for in other funds in accordance with budgetary authorizations,
including amounts provided as subsidies or matching funds for various grant programs; 2) move
investment earnings or operating subsidies from one fund to its designated, authorized purpose
carried out by another fund; 3) move resources designated for construction to and from
construction funds as projects are created and/or completed.
There were one-time transfers for grant purpose between several special revenue funds, the general
fund, and the construction funds. There were on-going transfers to move grant support from the
Community Development Block Grant fund to the general fund for qualified grant activities, and
from the general fund to the ambulance fund.
Loan Purpose
Nonmajor Special
Revenue
Nonmajor Debt
Service
Water/Sewer
Utility Total
General Fund LID Financing -$ $ 183,855 $ 3,285,273 3,469,128$
General Fund
Marina dock repairs-
Interim Financing 84,346 - - 84,346
Nonmajor Special Revenue LID Financing - 41,394 - 41,394
84,346$ 225,249$ 3,285,273$ 3,594,869$ INTERFUND LOANS DUE FROM INTERFUND LOANS DUE TO
Total
Due to
General Fund Total
Major Construction 5,174,478$ 5,174,478$
Nonmajor Special Revenue 363,658 363,658
Total 5,538,136$ 5,538,136$ DUE FROMGeneral Nonmajor Special
Revenue
Nonmajor Debt
Service
Major
ARPA
Major
Utility
Internal
Service Total
General -$ 338,958$ -$ 12,772$ -$ 451,762$ 803,492$
Nonmajor Special Revenue 14,728,387 367,097 - - - - 15,095,484
Nonmajor Debt Service - - 71,686 - - - 71,686
Major Construction 7,096,976 7,480,984 - - 140 - 14,578,100
Major Utility - 1,758,437 - - - - 1,758,437
Total 21,825,363$ 9,945,476$ 71,686$ 12,772$ 140$ 451,762$ 32,307,199$
TRANSFER FROM
TRANSFER TO
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTE 7: CHANGES IN LONG-TERM LIABILITIES
Changes in long-term liabilities - governmental.
The City liquidates most governmental debt service, pension and OPEB liabilities from the
General Fund. The only debt service not liquidated from the General Fund is debt related to the
Gesa Stadium improvements which is repaid from the Stadium Fund. Compensated absences are
mainly liquidated from General, Street and Ambulance funds. The fund for which the liability is
incurred is responsible for liquidating the liability. The average percentage of usage of
compensated absences varies significantly between governmental and business-type funds,
therefore the City uses a three-year average usage percentage for projecting compensated absences
due within one year. This method is the most accurate by following the current trend for each type
of funds. Internal service funds predominantly serve the governmental funds and their long-term
liabilities are included as part of the totals for governmental activities. In 2021 long-term liabilities
for Internal Service Funds included with Governmental activities was $19,197.
The table below reflects the change in Long-Term Liabilities for Governmental activities for
year ended December 31, 2021.
Changes in long-term liabilities – business-type.
All business-type funds liquidate their own compensated absences, judgements, and claims.
The table below reflects the change in Long-Term Liabilities for Business-Type activities for year
ended December 31, 2021
GOVERNMENTAL ACTIVITIES
Beginning Balance
01/01/2021 Additions Reductions
Ending Balance
12/31/21
Due Within One
Year
General Obligation Bonds 24,795,000$ -$ (875,000)$ 23,920,000$ 910,000$
Premiums 4,188,241 - (151,850) 4,036,391 151,850
Total GO Bonds Payable 28,983,241 - (1,026,850) 27,956,391 1,061,850
HUD Section 108 Loan - 3,781,000 (190,000) 3,591,000 190,000
Compensated Absences 4,082,060 3,340,406 (3,257,479) 4,164,987 2,508,705
OPEB Liabilities 12,969,448 - (2,364,056) 10,605,392 594,998
Pension Liabilities 3,222,902 - (2,402,796) 820,106 641,803
Governmental Activity Long-Term Activity 49,257,651$ 7,121,406$ (9,241,181)$ 47,137,876$ 4,997,356$
BUSINESS TYPE ACTIVITIES
Beginning Balance
01/01/2021 Additions Reductions
Ending Balance
12/31/21
Due Within One
Year
Revenue Bonds 51,395,000$ -$ (2,390,000)$ 49,005,000$ 2,085,000$
Premiums 2,646,892 - (154,708) 2,492,184 131,113
Total Bonds Payable 54,041,892 - (2,544,708) 51,497,184 2,216,113
State Loans 5,702,419 7,974,127 (428,236) 13,248,310 916,494
External Loan 1,182,099 - (131,838) 1,050,261 136,090
Compensated Absences 303,887 316,113 (283,847) 336,153 296,896
Pension Liabilities 1,292,664 - (1,011,009) 281,655 215,900
Business Activity Long-Term Activity 62,522,961 8,290,240 (4,399,638) 66,413,563 3,781,493
Total Changes in Business Type &
Governmental Long-Term Liabilities 111,780,612$ 15,411,646$ (13,640,819)$ 113,551,439$ 8,778,849$
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTE 8: LONG TERM DEBT
The City issues general obligation bonds to finance capital improvements such as street projects,
softball fields, library improvements, police station and other municipal facilities. Bonded
indebtedness has also been entered into in prior years to advance refund several general obligation
and revenue bonds. General obligation bonds have been issued for both general government and
business-type activities and are being repaid for the applicable resources. Revenue bonds are
issued to finance capital facilities, facility improvements and equipment purchases for the City’s
utilities. Governmental debt is considered obligations of the general government and is repaid with
general governmental resources. Proprietary fund revenues are used to repay revenue and
refunding bonds as well as certain loans to proprietary funds.
Governmental Debt
The City’s outstanding general obligation bonds are comprised of a 2015 bond issue that funded
the construction of a new police station and a 2019 bond issue to fund the construction of two fire
stations, improvements to the Gesa Stadium and the City’s contribution the construction of the
Tri-City Animal Shelter. A Public Safety Sales tax of three-tenths of one percent, implemented in
2012 was identified as the source of repayment of the 2015 bond. These issues are repaid from the
General Fund, except for the Gesa Stadium bond which is repaid from the Stadium Fund. During
2021, the City received a loan from the U.S. Department of Housing and Urban Development
(HUD) for the Peanuts Park Restoration Project. This loan will be repaid from HUD CDBG annual
grant allocations.
General obligation bonds outstanding as of December 31, 2021 are as follows:
Purpose Issuance Amount Final Maturity Interest Rates
Outstanding as of
December 31, 2021
Due Within 1
Year
2015 LTGO Police Station 8,795,000 12/1/2035 3.00%-4.00%6,815,000$ 375,000$
2019 LTGO Fire Stations 14,800,000 12/1/2049 4.00%-5.00%14,026,100 438,700
2019 LTGO Gesa Stadium 1,645,000 12/1/2049 4.00%-5.00%1,539,450 48,150
2019 LTGO Animal Shelter 1,645,000 12/1/2049 4.00%-5.00%1,539,450 48,150
23,920,000$ 910,000$
Total Governmental Debt
GOVERNMENTAL DEBT - BONDS
Purpose Issuance Amount Final Maturity Interest Rates Outstanding as of
December 31, 2021
Due Within 1
Year
2021 HUD Section 108 Loan3 3,781,000$ 08/01/2040 0.350-0.435%3,591,000$ 190,000$
3,591,000 190,000
27,511,000$ 1,100,000$
GOVERNMENTAL DEBT -LOANS
Total Governmental Type Debt
3HUD Section 108 Loan is to fund the Peanut Park Restoration Project
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The annual debt service requirements to maturity for general obligation bonds is presented in the
following table.
Business-Type Debt
In 2021, the City’s Water/Sewer utility continued the construction of projects supported by a $9.4
million revenue bond that was issued at the end of 2017. The purpose of the bond was to provide
funding and reimbursement for multiple sewer capital projects. The projects include upgrades and
replacement of several sewer lift stations, treatment plant upgrades, relining projects and certain
immediate needs projects identified by staff and consultants. These bonds will be repaid from
revenues from the Water/Sewer utility. In 2021, the city received two Department of Ecology
loans for Sewer improvements and an additional Public Works Board loan for Reuse Facility
improvements. The City is also liable for two state loans; 1) Drinking Water Loan for the
Columbia Water Supply Project. The Columbia Water Supply Project was completed in 2018. 2)
Public Works Board loan for pre-construction of Reuse Facility improvements. The City is also
liable for a local loan from the Hanford Area Economic Investment Fund Advisory Committee
(HAEIFAC) for improvements for the Reuse Facility.
As of December 31, 2021, restricted cash and investments in the proprietary funds contain
$4,778,013 in sinking funds and reserves as required by bond indentures.
Year Ending
December 31 Principal Interest Total Debt Service
2022 1,100,000$ 1,108,001$ 2,208,001$
2023 1,135,000 1,071,601 2,206,601
2024 1,180,000 1,028,251 2,208,251
2025 1,235,000 982,801 2,217,801
2026 1,275,000 934,801 2,209,801
2027-2031 7,170,000 3,888,679 11,058,679
2032-2036 4,425,000 2,631,566 7,056,566
2037-2041 3,101,000 1,847,283 4,948,283
2042-2046 3,030,000 1,124,500 4,154,500
2047-2049 3,860,000 246,750 4,106,750
TOTAL 27,511,000$ 14,864,231$ 42,375,231$
GOVERNMENTAL DEBT
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Revenue Bonds, General Obligation Bonds and Loans outstanding for Business-Type Accounts
are as follows:
The annual debt service requirements to maturity for all Business-Type debt is as follows:
For financial statement presentation the City’s non-current portion of bonds payable are presented
net of premium and discounts. Current bonds payable reflects actual principal payments including
Purpose Issuance Amount Final Maturity Interest Rates Outstanding as of
December 31, 2021
Due Within 1
Year
2013A Sewer Capital Projects 2,520,000$ 12/01/2028 3.00%-4.00%1,495,000$ 190,000$
2013T Capital Projects Reuse Facility 7,235,000 12/01/2028 .69%-4.89%4,060,000 505,000
2015 Water/Sewer Capital Projects 14,380,000 12/01/2040 2.00%-5.00%11,725,000 310,000
2017 Sewer Improvement Revenue Bonds1 9,415,000 12/01/2042 3.30%-4.00%9,415,000 -
2020A Water/Sewer Revenue Bond 7,135,000 12/01/2029 4.00%-5.00%6,455,000 700,000
2020B PWRF Revenue Bond 16,415,000$ 12/01/2050 1.17%-3.57%15,855,000 380,000
49,005,000$ 2,085,000$
1 This bond requires interest-only payments until 2030.
Purpose Issuance Amount Final Maturity Interest Rates Outstanding as of
December 31, 2021
Due Within 1
Year
DM15-952-037 Columbia Water Supply Project2 6,810,430$ 10/01/2034 1.50%5,195,542$ 399,657$
WQC-2021-Pasco-00020 Water Quality 3,105,502 12/30/1941 1.20%3,105,502 155,275
WQC-2021-Pasco-00044 Water Quality 4,542,994 12/30/1941 1.90%4,544,213 227,211
PR18-96103-065 PWB- PWRF 431,632 06/01/2024 0.84%403,053 134,351
HAEIFAC - Reuse Facility Improvement Loan 1,500,000$ 07/01/2028 3.20%1,050,261 136,090
- -
14,298,571 1,052,584
63,303,571$ 3,137,584$
BUSINESS TYPE DEBT -BONDS
BUSINESS TYPE DEBT -LOANS
Total Business Type Debt
Year Ending
December 31 Principal Interest Total Debt Service
2022 3,137,584$ 2,008,073$ 5,145,657
2023 3,151,974 1,924,254 5,076,228
2024 3,236,444 1,838,294 5,074,738
2025 3,186,830 1,742,897 4,929,727
2026 2,986,658 1,645,768 4,632,426
2027-2031 13,195,253 6,923,087 20,118,340
2032-2036 12,521,400 5,026,249 17,547,649
2037-2041 13,457,428 2,858,752 16,316,180
2042-2046 5,300,000 983,335 6,283,335
2047-2050 3,130,000 284,510 3,414,510
TOTAL 63,303,571$ 25,235,219$ 88,538,790$
BUSINESS TYPE DEBT
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
the current portion of the amortized premium due within one year. The following table illustrates
the breakdown by fund type for current and non-current bonds payable and the effect of premium
or discount on balances. Balances shown are as of December 31, 2021.
Special Assessment Debt
Local improvement districts (LID's) are created for the primary purposes of constructing streets,
storm drainage, sidewalk, street lighting, water, and sewer improvements. The principal and
interest on the bond issues are expected to be paid solely from special assessments collected. The
assessments are liens against the property and are subject to foreclosure. The LID Guarantee Fund
ended the year with a balance of $417,551. There is no external debt issue for local improvement
districts, all outstanding debt is internally funded through inter-fund loans. See details in Note 6:
Inter-fund Balances and Transfers
NOTE 9: OPERATING LEASES
Operating leases. The city leases its front-line police vehicles. The city began leasing three fire
vehicles in 2022. Leases are generally for a three-year period. Generally, at the end of the three-
year period the lease ends and the city returns the vehicles. New vehicles and leases are then
acquired. Total cost for such leases was $491,054 for the year ended December 31, 2021. The
following represents the future annual minimum lease payments:
Bonds Governmental Business Type Total
Current Bonds Payable 910,000$ 2,085,000$ 2,995,000$
Bond Premium/Discounts 151,850 131,113 282,963
Total Current Bonds Payable 1,061,850 2,216,113 3,277,963
Non Current - Bonds Payable 23,010,000 46,920,000 69,930,000
Bond Premium/Discounts 3,884,541 2,361,071 6,245,612
Total Non Current Bonds Payable 26,894,541 49,281,071 76,175,612
Total Bonds Payable 23,920,000 49,005,000 72,925,000
Total Bond Premium/Discounts 4,036,391 2,492,184 6,528,575
Total Bonds Payable (Net of Premium/Discounts )27,956,391$ 51,497,184$ 79,453,575$
Police Fire Grand Total
Year Ending December 31 Amount Amount Amount
2022 322,557$ 34,030$ 356,587$
2023 219,796 39,422 259,218
2024 100,130 39,422 139,551
2025 44,293 39,422 83,714
2026 15,899 39,422 55,321
2027 - 39,422 39,422
Total 702,674$ 231,139$ 933,813$
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTE 10: RISK MANAGEMENT
The City of Pasco maintains insurance against most normal hazards except for unemployment and
automobile collision, where it has elected to become self-insured. For unemployment claims, the
City is on a 100% reimbursable program with the State where the Ci ty pays all unemployment
claims charged against it.
City of Pasco is a member of the Washington Cities Insurance Authority (WCIA). Utilizing
Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation
Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose
of providing a pooling mechanism for jointly purchasing insurance, jointly self-insuring, and / or
jointly contracting for risk management services. WCIA has a total of 166 members.
New members initially contract for a three-year term, and thereafter automatically renew on an
annual basis. A one-year withdrawal notice is required before membership can be terminated.
Termination does not relieve a former member from its unresolved loss history incurred during
membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes
general, automobile, police, errors or omissions, stop gap, employment practices, prior wrongful
acts, and employee benefits liability. Limits are $4 million per occurrence in the self-insured layer,
and $16 million in limits above the self-insured layer is provided by reinsurance. Total limits are
$20 million per occurrence subject to aggregates and sub -limits. The Board of Directors
determines the limits and terms of coverage annually.
In-house services include risk management consultation, loss control field services, and claims
and litigation administration. WCIA contracts for certain claims investigations, consultants fo r
personnel and land use issues, insurance brokerage, actuarial, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated
basis, as determined by an outside, independent actuary. The assessment covers loss, loss
adjustment, reinsurance, and other administrative expenses. As outlined in the interlocal, WCIA
retains the right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment
of WCIA’s assets in financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from
each member. The Board elects an Executive Committee and appoints a Treasurer to provide
general policy direction for the organization. The WCIA Executive Director reports to the
Executive Committee and is responsible for conducting the day-to-day operations of WCIA. The
City has not had claims in excess of insurance for the last three years.
The City is self-insured for medical and dental coverage for its employees. A third-party
administrator, Benefits Management, Inc., processes all claims for reimbursement. The third-party
administrator provides utilization management services and requires pre-authorization for all non-
emergency hospital confinements. The City currently maintains four months (16 weeks) of
program expense in cash reserves for medical and dental claims. Program expense includes average
claims as well as administrative and third-party provider costs. To limit the exposure for large
claims, the City purchases individual stop-loss coverage from a commercial insurance carrier that
limits the City's exposure for claim losses to $100,000 per individual.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The number of medical/dental claims in excess of commercial insurance for the last three years
are:
NOTE 11: JOINT AGREEMENT/JOINT VENTURES
A. Bi-County Police Information Network
The Bi-County Police Information Network (BI-PIN) was established November 24, 1982, when
an Interlocal Agreement was entered into by eight participating municipal corporations, the cities
of Kennewick, Pasco, Richland, Connell, West Richland, and Prosser, and Benton and Franklin
Counties. BI-PIN was established to assist the participating police and sheriff's departments in
the deterrence and solution of criminal incidents. BI-PIN is served by an Executive Committee
composed of the City Manager of each of the cities and a member from each of the Boards of
County Commissioners of Benton and Franklin Counties. A liaison from the Bi-County Chiefs
and Sheriffs is an ex officio, non-voting member.
The allocation of financial participation among the participating jurisdictions is based upon the
approved budget for that year and is billed quarterly in advance to each agency. On dissolution
of the Interlocal Agreement, the net position will be shared based upon participant contribution.
Effective January 1, 1992, the City of Kennewick assumed responsibility for operation of the BI-
PIN system. As the Operating Jurisdiction, Kennewick provides all necessary support services
for the operation of BI-PIN such as accounting, legal services, and risk management and
information systems. The total amount paid by BI-PIN in 2021 for these transactions was
$46,437.
BI-PIN is currently in the process of implementing a new RMS/JMS system as well as upgrading
all supporting infrastructure. The City of Pasco's equity interest in BI-PIN was $289,900 on Dec
31, 2021, which is reported as an investment in joint ventures in the government-wide statement
of net position. The change in equity is reflected in the government-wide statement of activities
under Public Safety. The City does not anticipate any income distributions from BI-PIN since
charges are assessed only to recover anticipated expenses.
Complete separate financial statements for BI-PIN may be obtained at the City of Kennewick,
210 W. 6th Ave., Kennewick, Washington, 99336.
B. Metro Drug Forfeiture Fund
The Metropolitan Controlled Substance Enforcement Group (Metro) established prior to 1987,
when Interlocal Agreement entered into by six participating municipal corporations, the cities of
Kennewick, Pasco, Richland, and West Richland, and Benton and Franklin Counties. Metro
established to account for the proceeds of forfeitures, federal grants, and court ordered
contributions, and to facilitate the disbursement of those proceeds for the purpose of drug
2019 2020 2021
6,170,277$ 5,620,957$ 5,928,124$
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
enforcement and investigations. Metro served by an Executive Committee composed of the City
Manager or designee of each of the cities and a member from each of the Boards of County
Commissioners of Benton and Franklin Counties. In addition, a Governing Board consisting of
the Chiefs of Police from the cities and the Sheriff from the counties administers daily activity.
Effective July 1, 2009, the City of Kennewick assumed responsibility for the operation of Metro.
As the Operating Jurisdiction, Kennewick provides accounting services for the operation of
Metro.
The City of Pasco's equity interest in Metro was $46,410 on Dec 31, 2021, which reported as an
investment in joint ventures in the government-wide statement of net position. The change in
equity is reflected in the government-wide statement of activities under Public Safety. The City
does not anticipate any income distributions from Metro.
Complete separate financial statements for Metro obtained at the City of Kennewick, 210 West
Sixth Avenue, Kennewick, Washington.
SECOMM - SECOMM provides public safety communications services to the Cities of
Kennewick, Richland, Pasco and the Counties of Benton and Franklin. Each owns an equal
share of SECOMM’s net assets. Financial participation is allocated among the five participants
based on equal shares of capital expenses, predetermined fixed costs, direct costs and
percentages of use. SECOMM also provides service through contracts to the Cities of West
Richland and Prosser, Connell and the Benton and Franklin County Fire Protection Districts,
Port of Pasco, Walla Walla Fire District #5 and the North Franklin County Hospital district.
Service contract agencies are assessed on a cost per capita or cost per call basis. The City of
Pasco’s equity interest in SECOMM as of December 31, 2021 was $1,166,064 which is
reported as an asset in the government-wide Statement of Net Assets. The change in equity is
reflected in Public Safety under the government-wide Statement of Activities. Upon dissolution
of the Interlocal Agreement, the net assets will be shared equitably among the participants.
Complete and separate financial statements for all operations of Benton County Emergency
Services may be obtained at the City of Richland, 625 Swift Blvd, Richland, Washington.
C. Tri-City Animal Control Authority
In 2005 the city entered into an interlocal agreement with the cities of Kennewick and Richland
to jointly fund the operations of the Animal Control Authority (ACA). The ACA was
established to provide animal control and sheltering services. ACA is served by an Executive
Committee composed of the City Manager, or designee, of each of the cities.
In 2005, the City of Pasco was designated as the Operation Jurisdiction for the ACA. As the
Operating Jurisdiction, the City provides all necessary support services for the operation such
as accounting, contract administration and risk management.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTE 12: RELATED PARTIES/ORGANIZATIONS
Pasco Public Facility District Pursuant to RCW 35.57 (the “City PFD Act”) the Pasco Public
Facilities District was formed and created by Ordinance No. 3558 on July 15, 2002, coextensive
with the boundaries of the City, with the powers and authority set forth in the City PFD Act. The
District was established for the purpose of acquiring, constructing, owning, remodeling,
maintaining, equipping, re-equipping, repairing, financing, operating one or more Regional
Centers, as defined by the RCW 35.57.020 and/or participating with any other qualified public
facilities district in a cooperative and joint development of a Regional Center in the Tri-Cities area
by interlocal agreement.
The members of the board of directors of the District (the “PFD Board”) shall be selected and
appointed by the Council, as required by the RCW. The PFD Board consisted of five members.
Three of the members will be appointed based on recommendations from local organizations. The
members serve four-year terms. The Council may, by resolution, remove a member for any reason.
Vacancies will be filled by appointment by the Council.
All corporate powers of the District will be exercised by or under the authority of the PFD Board;
and the business, property and affairs of the District shall be managed under the direction of t he
PFD Board, except as may be otherwise provided for by law or in its Charter.
Complete separate financial statements for the District may be obtained from the City of Pasco,
P.O. Box 293, Pasco, WA 99301.
Downtown Pasco Development Authority
Pursuant to RCW 35.21, the Downtown Pasco Development Authority was formed and created by
Ordinance No. 3985 (the DPDA Act) on December 20, 2010, coextensive with the boundaries of
the City, with the powers and authority set forth in the City DPDA Act. The Authority was created
to administer and e xecute Federal grants or programs; to receive and administer private
funds, goods or services for any lawful public service; and to perform any lawful public
purpose or public function to provide for the revitalization and enhancement of the
downtown Pasco area.
The members of the board of directors of the Authority (the “DPDA Board”) are selected and
appointed by the Mayor of the City of Pasco, subject to confirmation by the City Council. The
DPDA Board consists of nine members. Five of the members are representative of for-profit
business or property owners within the downtown area. At least two members are representative
of the banking and/or real estate profession, and at least two members are representatives of
business or corporate management. The members serve four-year terms. The Council may, by
resolution, remove a member for any reason. Vacancies will be filled by appointment by the
Mayor, subject to confirmation by the City Council.
All corporate powers of the Authority will be exercised by or under the authority of the DPDA
Board; and the business, property and affairs of the Authority shall be managed under the direction
of the DPDA Board, except as may be otherwise provided by law or in its Charter.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
In 2021, the City expended $204,850 in subsidies and pass-through grants to the DPDA. As part
of its charter, the DPDA was granted the right to receive the revenues generated by the Farmers’
Market and the Specialty Kitchen program. The activity from those two programs is not reflected
in the amount noted above.
Financial statements for the Authority may be obtained from the Downtown Pasco Development
Authority at 720 W. Lewis Street, Suite 131, Pasco, WA 99301.
Trade, Recreation, Agricultural Center
In 1994 the City entered into an agreement with Franklin County for the Trade, Recreation, and
Agricultural Center (TRAC). The City and Franklin County share in the costs of operating and
covering TRAC’s debt service. Franklin County handles all operating decisions and financial
reporting for TRAC. In Spring of 2019, Franklin County partnered with HAPO Community Credit
Union for a ten-year naming rights agreement. As such, for the purposes of this document, the
terms HAPO Center and TRAC are interchangeable.
The City accounts for its portion of TRAC activity in the TRAC Special Revenue Fund. For
calendar year 2021, the City of Pasco paid Franklin County $198,347 for operating expenditures.
Additionally, in 2014 the City provided $100,000 to the County to assist with TRAC’s cash flows.
This will be returned to the City in 2026, when the existing agreement lapses. It is classified on
the balance sheet as a non-current asset: Due from Other Government. As of December 31, 2021,
the TRAC Fund had a fund balance of $522,661.
Complete financial statements for TRAC may be obtained from Franklin County, 1016 N. 4th
Avenue, Pasco, Washington.
Housing Authority of the City of Pasco and Franklin County
The Housing Authority of the City of Pasco and Franklin County was formed and created by
Ordinance No. 2299 on September 8, 1981, in order to pursue the rehabilitation and redevelopment
of blighted areas containing unsanitary or unsafe habitations located within the City of Pasco and
Franklin County. Its formation empowered the joint housing authority to exercise all rights referred
to under RCW 35.82 “Housing Authority Law.”
Three of the five Authority board members are appointed by the City Council.
In 2015, the City and the Authority entered into an agreement which established Payment in Lieu
of Taxes (PILOT) to the City starting in 2015 to defray the cost of the City providing essential
local public services.
Financial statements for the Authority may be obtained from the Housing Authority of the City of
Pasco and Franklin County, 2505 W. Lewis Street, Pasco, WA 99301.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
NOTE 13: JOINTLY GOVERNED ORGANIZATIONS
Tri-Cities Regional Public Facilities District
Pursuant to RCW 35.57 the Tri-Cities Regional Public Facilities District was formed jointly by
the Cities of Pasco, Kennewick, and Richland. The District was established for the purpose of
acquiring, constructing, owning, remodeling, maintaining, equipping, re-equipping, repairing,
financing, operating one or more Regional Centers, as d efined by the RCW35.57.020 and/or
participating with any other qualified public facilities districts in a cooperative and joint
development of a Regional Center in the Tri-Cities area, by interlocal agreement.
The District is governed by a nine-member board, with three members representing each city.
Each member must either be a member of the City Council or the Public Facilities District of the
representative city.
Franklin County Emergency Management
Franklin County Emergency Management (FCEM) is a political subdivision of Franklin County
and its municipalities. The FCEM is responsible for coordinating and establishing emergency
response plans to prepare Franklin County for emergencies involving the following: Energy
Northwest; the Hanford Nuclear Reservation; the Pasco Airport; and all Homeland Security,
natural and man-made disasters.
FCEM is governed by a seven-member board, with two County Commissioners, one City Manager
or designee from each of the following cities: Connell, Kahlotus, and Mesa. The City of Pasco
has two representatives on the board due to its population base.
Benton-Franklin Council of Governments
The Benton-Franklin Council of Governments (BFCG) is a voluntary association of the units of
local government, whose purpose is to facilitate a cooperative approach to regional problem
solving.
Seventeen regular voting members represent the two counties, local governments, including a
Public Utility District, a Transportation District, a Port and the Washington State Department of
Transportation. The City of Pasco has one City Council member as its voting representative on
the Board. In addition to regular voting members, there is one associate member and two affiliate
members.
Benton-Franklin Council of Governments Economic Development District
The Benton-Franklin Council of Governments Economic Development District (EDD) is a
voluntary association of the units of local government and private sector members whose purpose
is to facilitate a cooperative approach to regional economic development.
The board is comprised of the members of the Benton-Franklin Council of Governments plus nine
representatives from the private sector.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Benton County Emergency Services (BCES)
BCES was formed January 1, 1997 through an interlocal agreement entered into by the Cities of
Richland, Kennewick, West Richland, Benton City and Prosser as well as Benton County. A
second amended and restated interlocal agreement was made and entered into by and between the
following entities: Benton County, Franklin County, the Cities of Kennewick, Richland, West
Richland, Prosser, Benton City, and Pasco, Benton County Fire Protection Districts and the Public
Utility District #1 of Benton County. An Executive Board oversees the operations of BCES and
consists of the City Managers (or designee) from the Cities of Kennewick, Pasco and Richland,
City Administrators from Prosser and West Richland, a Council member from Benton City, a
Benton County Commissioner, a Franklin County Commissioner and a single representative
collectively representing Benton County Fire Protection Districts. The City of Richland serves as
the operating jurisdiction providing all the necessary administrative support services and reporting
for BCES. The total amount paid by BCES in 2021 for these services was $424,808. No
distributions of income to the City are expected since charges are assessed only t o recover
anticipated expenses.
NOTE 14: EMPLOYEE RETIREMENT SYSTEMS AND PENSION PLANS
The following table represents the aggregate pension amounts for all plans for the year 2021:
State Sponsored Pension Plans
Substantially all city’s full-time and qualifying part-time employees participate in one of the
following statewide retirement systems administered by the Washington State Department of
Retirement Systems, under cost-sharing, multiple-employer public employee defined benefit and
defined contribution retirement plans. The state Legislature establishes, and amends, laws
pertaining to the creation and administration of all public retirement systems.
The Department of Retirement Systems (DRS), a department within the primary government of
the State of Washington, issues a publicly available comprehensive annual financial report that
includes financial statements and required supplementary information for each plan. The DRS
comprehensive annual financial report may be obtained by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia, WA 98540-8380
Or the DRS comprehensive annual financial report may be downloaded from the DRS website at
www.drs.wa.gov.
Pension liabilities (1,101,761)$
Pension assets 44,856,409
Deferred outflows of resources 4,148,134
Deferred inflows of resources (28,452,106)
Pension expense/expenditures (7,077,090)$
Aggregate Pension Amounts - All Plans
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Public Employee’s Retirement System (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals
and Superior Courts; employees of the legislature; employees of district and municipal courts;
employees of local governments; and higher education employees not participating in higher
education retirement programs. PERS is comprised of three separate pension plans for
membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined
benefit plan with a defined contribution component.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are
determined as two percent of the member’s average final compensation (AFC) times the member’s
years of service. The AFC is the average of the member’s 24 highest consecutive service months.
Members are eligible for retirement from active status at any age with at least 30 years of service,
at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members
retiring from active status prior to the age of 65 may receive actuarially reduced benefits.
Retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other
benefits include duty and non-duty disability payments, an optional cost-of-living adjustment
(COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor
and Industries. PERS 1 members were vested after the completion of five years of eligible service.
The plan was closed to new entrants on September 30, 1977.
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The
employer contribution rate is developed by the Office of the State Actuary and includes an
administrative expense component that is currently set at 0.18 percent. Each biennium, the state
Pension Funding Council adopts Plan 1 employer contribution rates.
The PERS Plan 1 required contribution rates (expressed as a percentage of covered payroll) for
2021 were as follows:
* For employees participating in JBM, the contribution rate was 12.26%.
Actual Contribution Rates Employer Employee*
January – June 2021
PERS Plan 1 7.92%6.00%
PERS Plan 1 UAAL 4.87%
Administrative Fee 0.18%
Total 12.97%6.00%
July – December 2021
PERS Plan 1 10.07%6.00%
Administrative Fee 0.18%
Total 10.25%6.00%
PERS Plan 1
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
PERS Plan 2/3 provides retirement, disability, and death benefits. Retirement benefits are
determined as two percent of the member’s average final compensation (AFC) times the member’s
years of service for Plan 2 and 1 percent of AFC for Plan 3. The AFC is the average of the
member’s 60 highest-paid consecutive service months. There is no cap on years of service credit.
Members are eligible for retirement with a full benefit at 65 with at least five years of service
credit. Retirement before age 65 is considered an early retirement. PERS Plan 2/3 members who
have at least 20 years of service credit and are 55 years of age or older, are eligible for early
retirement with a benefit that is reduced by a factor that varies according to age for each year
before age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at
least 55 years old can retire under one of two provisions:
• With a benefit that is reduced by three percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter
return-to-work rules.
PERS Plan 2/3 members hired on or after May 1, 2013, have the option to retire early by accepting
a reduction of five percent for each year of retirement before age 65. This option is available only
to those who are age 55 or older and have at least 30 years of service credit. PERS Plan 2/3
retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other
PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-living allowance
(based on the CPI), capped at three percent annually and a one-time duty related death benefit, if
found eligible by the Department of Labor and Industries. PERS 2 plan members are vested after
completing five years of eligible service. Plan 3 members are vested in the defined benefit portion
of their plan after ten years of service; or after five years of service if 12 months of that service are
earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and
investment earnings on those contributions. PERS Plan 3 members choose their contribution rate
upon joining membership and have a chance to change rates upon changing employers. As
established by statute, Plan 3 required defined contribution rates are set at a minimum of 5 percent
and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined
contribution benefits. PERS Plan 3 members are immediately vested in the defined contribution
portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the
State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer
rates include a component to address the PERS Plan 1 UAAL and an administrative expense that
is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 2
employer and employee contribution rates and Plan 3 contribution rates.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The PERS Plan 2/3 required contribution rates (expressed as a percentage of covered payroll) for
2021 were as follows:
* For employees participating in JBM, the contribution rate was 15.90%.
The City’s actual PERS plan contributions were $641,234 to PERS Plan 1 and $1,065,812 to PERS
Plan 2/3 for the year ended December 31, 2021.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement
commissioned officers, firefighters, and as of July 24, 2005, emergency medical technicians.
LEOFF is comprised of two separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are
determined per year of service calculated as a percent of final average salary (FAS) as follows:
• 20+ years of service – 2.0% of FAS
• 10-19 years of service – 1.5% of FAS
• 5-9 years of service – 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has
held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is the
average of the highest consecutive 24 months’ salary within the last ten years of service. Members
are eligible for retirement with five years of service at the age of 50. Other benefits include duty
and non-duty disability payments, a cost-of living adjustment (COLA), and a one-time duty-related
death benefit, if found eligible by the Department of Labor and Industries. LEOFF 1 members
were vested after the completion of five years of eligible service. The plan was closed to new
entrants on September 30, 1977.
Actual Contribution Rates Employer 2/3 Employee
2*
January – June 2021
PERS Plan 2/3 7.92%7.90%
PERS Plan 1 UAAL 4.87%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 12.97%7.90%
July – December 2021
PERS Plan 2/3 6.36%6.36%
PERS Plan 1 UAAL 3.71%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 10.25%6.36%
PERS Plan 2/3
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, if the
plan remains fully funded. The LEOFF Plan I had no required employer or employee contributions
for fiscal year 2021. Employers paid only the administrative expense of 0.18 percent of covered
payroll.
LEOFF Plan 2 provides retirement, disability, and death benefits. Retirement benefits are
determined as two percent of the final average salary (FAS) per year of service (the FAS is based
on the highest consecutive 60 months). Members are eligible for retirement with a full benefit at
53 with at least five years of service credit. Members who retire prior to the age of 53 receive
reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is
three percent for each year prior to age 53. Otherwise, the benefits are actuarially reduced for each
year prior to age 53. LEOFF 2 retirement benefits are also actuarially reduced to reflect the choice
of a survivor benefit. Other benefits include duty and non-duty disability payments, a cost-of-
living allowance (based on the CPI), capped at three percent annually and a one-time duty-related
death benefit, if found eligible by the Department of Labor and Industries. LEOFF 2 members are
vested after the completion of five years of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the
State Actuary to fully fund Plan 2. The employer rate includes an administrative expense
component set at 0.18 percent. Plan 2 employers and employees are required to pay at the level
adopted by the LEOFF Plan 2 Retirement Board.
Effective July 1, 2017, when a LEOFF employer charges a fee or recovers costs for services
rendered by a LEOFF 2 member to a non-LEOFF employer, the LEOFF employer must cover both
the employer and state contributions on the LEOFF 2 basic salary earned for those services. The
state contribution rate (expressed as a percentage of covered payroll) was 3.41% in 2021.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of cover ed payroll) for
2021 were as follows:
Actual Contribution Rates Employer Employee
January – June 2021
State and local governments 5.15%8.59%
Administrative Fee 0.18%
Total 5.33%8.59%
Ports and Universities 8.59%8.59%
Administrative Fee 0.18%
Total 8.77%8.59%
July – December 2021
State and local governments 5.12 8.53%
Administrative Fee 0.18%
Total 5.30%8.53%
Ports and Universities 8.53%8.53%
Administrative Fee 0.18%
Total 8.71%8.53%
LEOFF Plan 2
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The City’s actual contributions to the plan were $1,064,529 for the year ended December 31, 2021.
The Legislature, by means of a special funding arrangement, appropriates money from the state
General Fund to supplement the current service liability and fund the prior service costs of Plan 2
in accordance with the recommendations of the Pension Funding Council and the LEOFF Plan 2
Retirement Board. This special funding situation is not mandated by the state constitut ion and
could be changed by statute. For the state fiscal year ending June 30, 2021, the state contributed
$78,170,320 to LEOFF Plan 2. The amount recognized by the City as its proportionate share of
this amount is $616,868.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent
actuarial valuation completed in 2021 with a valuation date of June 30, 2020. The actuarial
assumptions used in the valuation were based on the results of the Office of the State Actuary’s
(OSA) 2013-2018 Demographic Experience Study and the 2019 Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2020 actuarial
valuation report. The TPL was calculated as of the valuation date and rolled forward to the
measurement date of June 30, 2021. Plan liabilities were rolled forward from June 30, 2020, to
June 30, 2021, reflecting each plan’s normal cost (using the entry-age cost method), assumed
interest and actual benefit payments.
• Inflation: 2.75% total economic inflation; 3.50% salary inflation
• Salary increases: In addition to the base 3.50% salary inflation assumption, salaries are also
expected to grow by promotions and longevity.
• Investment rate of return: 7.4%
Mortality rates were developed using the Society of Actuaries’ Pub. H-2010 mortality rates, which
vary by member status, as the base table. The OSA applied age offsets for each system, as
appropriate, to better tailor the mortality rates to the demographics of each plan. OSA applied the
long-term MP-2017 generational improvement scale, also developed by the Society of Actuaries,
to project mortality rates for every year after the 2010 base table. Mortality rates are applied on a
generational basis; meaning, each member is assumed to receive additional mortality
improvements in each future year throughout their lifetime.
There were no changes in assumptions since the last valuation. There were changes in methods
since the last valuation.
• For purposes of the June 30, 2020, Actuarial Valuation Report (AVR), a non-contribution rate
setting valuation under current funding policy, the Office of the State Actuary (OSA)
introduced temporary method changes to produce asset and liability measures as of the
valuation date. See high-level summary below. OSA will revert to the methods outlined in the
2019 AVR when preparing the 2021 AVR, a contribution rate-setting valuation, which will
serve as the basis for 2022 ACFR results.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
• To produce measures at June 30, 2020, unless otherwise noted in the 2020 AVR, OSA relied
on the same data, assets, methods, and assumptions as the June 30, 2019 AVR. OSA projected
the data forward one year reflecting assumed new hires and current members exiting the plan
as expected. OSA estimated June 30, 2020, assets by relying on the fiscal year end 2019 assets,
reflecting actual investment performance over FY 2020, and reflecting assumed contribution
amounts and benefit payments during FY 2020. OSA reviewed the actual June 30, 2020,
participant and financial data to determine if any material changes to projection assumptions
were necessary. OSA also considered any material impacts to the plans from 2021 legislation.
See the 2020 AVR for more information.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.4 percent.
To determine that rate, an asset sufficiency test was completed to test whether each pension plan’s
fiduciary net position was sufficient to make all projected future benefit payments for current plan
members. Based on OSA’s assumptions, the pension plans’ fiduciary net position was projected
to be available to make all projected future benefit payments of current plan members. Therefore,
the long-term expected rate of return of 7.4 percent was used to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.4 percent was
determined using a building-block-method. In selecting this assumption, the OSA reviewed the
historical experience data, considered the historical conditions that produced past annual
investment returns, and considered Capital Market Assumptions (CMA’s) and simulated expected
investment returns provided by the Washington State Investment Board (WSIB). The WSIB uses
the CMA’s and their target asset allocation to simulate future investment returns at various future
times.
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension
plan’s target asset allocation as of June 30, 2021 are summarized in the table below. The inflation
component used to create the table is 2.2 percent and represents the WSIB’s most recent long-term
estimate of broad economic inflation.
Asset Class Target
Allocation
Fixed Income 20%2.20%
Tangible Assets 7%5.10%
Real Estate 18%5.80%
Global Equity 32%6.30%
Private Equity 23%9.30%
100%
% Long-Term Expected Real Rate
of Return Arithmetic
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Sensitivity of the Net Pension Liability/(Asset)
The table below presents the City’s proportionate share of the net pension liability calculated using
the discount rate of 7.4 percent, as well as what the City’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1 -percentage point lower (6.4
percent) or 1-percentage point higher (8.4 percent) than the current rate.
Pension Plan Fiduciary Net Position
Detailed information about the State’s pension plans’ fiduciary net position is available in the
separately issued DRS financial report.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
On December 31, 2021, the City reported a total pension asset of $1,101,761 and a total pension
liability of $41,706,690 for its proportionate share of the net pension liabilities as follows:
The amount of the asset reported above for LEOFF Plans 1 and 2 reflects a reduction for State
pension support provided to the city. The amount recognized by the city as its proportionate share
of the net pension asset, the related State support, and the total portion of the net pension asset that
was associated with the city were as follows:
Plan 1% Decrease
6.4%
Current Discount
Rate 7.40%
1 % Increase
8.4%
PERS 1 1,876,911$ 1,101,761$ 425,749$
PERS 2/3 (3,289,544) (11,547,099) (18,347,198)
LEOFF 1 (2,068,410) (2,297,559) (2,495,811)
LEOFF 2 (17,569,818)$ (27,862,033)$ (36,289,303)$
Plan Liability (or Asset)
PERS 1 (1,101,761)$
PERS 2/3 11,547,099
LEOFF 1 2,297,559
LEOFF 2 27,862,033$
LEOFF 1 ASSET LEOFF 2 ASSET
Employer's proportionate share (2,297,559)$ (27,862,033)$
State's proportianate share of the net
pension asset associated with the
employer
(15,540,630) (17,974,052)
Total (17,838,189)$ (45,836,085)$
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
At June 30, the city’s proportionate share of the collective net pension liabilities was as follows:
Employer contribution transmittals received and processed by the DRS for the fiscal year ended
June 30, 2021, are used as the basis for determining each employer’s proportionate share of the
collective pension amounts reported by the DRS in the Schedules of Employer and Nonemployer
Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to
LEOFF 1 from 1971 through 2000 and the retirement benefit payments in fiscal year 2021.
Historical data was obtained from a 2011 study by the Office of the State Actuary (OSA). The
state of Washington contributed 87.12 percent of LEOFF 1 employer contributions and all other
employers contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully
funded, and no further employer contributions have been required since June 2000. If the plan
becomes underfunded, funding of the remaining liability will require new legislation. The
allocation method the plan chose reflects the projected long-term contribution effort based on
historical data.
In fiscal year 2021, the state of Washington contributed 39 percent of LEOFF 2 employer
contributions pursuant to RCW 41.26.725 and all other employers contributed the remaining 61
percent of employer contributions.
Pension Expense
For the year ended December 31, 2021, the city recognized pension expense as follows
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2021, the city reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Proportionate Proportionate Change in
Plan Share 6/30/20 Share 6/30/21 Proportion
PERS 1 0.086902%0.090217%0.003315%
PERS 2/3 0.113176%0.115916%0.002740%
LEOFF 1 0.069045%0.067071% -0.001974%
LEOFF 2 0.468151%0.479684%0.011533%
PERS 1 (63,023)$
PERS 2 (2,568,842)
LEOFF 1 (305,231)
LEOFF 2 (3,430,312)
Old Fire Pension (709,682)
TOTAL (7,077,090)$
Pension Expense 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Deferred Outflows Deferred Inflows
of Resources of Resources
-$ -$
- (1,222,586)
- -
Changes in proportion share - -
Contributions subsequent to the measurement date 296,153 -
TOTAL 296,153$ (1,222,586)$
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 560,826$ (141,556)$
- (9,650,666)
Changes of assumptions 16,874 (820,035)
Changes in proportion share 178,059 (158,752)
Contributions subsequent to the measurement date 504,632 -
TOTAL 1,260,391$ (10,771,009)$
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience -$ -$
- (702,046)
Changes of assumptions - -
Changes in proportion share - -
Contributions subsequent to the measurement date - -
TOTAL -$ (702,046)$
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 1,263,715$ (147,249)$
- (13,284,818)
Changes of assumptions 12,044 (1,325,120)
Changes in proportion share 705,180 (453,467)
Contributions subsequent to the measurement date 610,650 -
TOTAL 2,591,589$ (15,210,654)$
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience -$ -$
- (545,812)
Changes of assumptions - -
Changes in proportion share - -
Contributions subsequent to the measurement date - -
TOTAL -$ (545,812)$
TOTAL DEFERRED OUTFLOWS Deferred Outflows Deferred Inflows
AND INFLOWS FOR ALL PLANS of Resources of Resources
Differences between expected and actual experience 1,824,541$ (288,805)$
- (25,405,928)
Changes of assumptions 28,918 (2,145,155)
Changes in proportion share 883,239 (612,219)
Contributions subsequent to the measurement date 1,411,435 -
TOTAL 4,148,133$ (28,452,107)$
Net difference between projected and actual investment earnings on
pension plan investments
Old Fire Pension
Net difference between projected and actual investment earnings on
pension plan investments
Net difference between projected and actual investment earnings on
pension plan investments
Net difference between projected and actual investment earnings on
pension plan investments
Net difference between projected and actual investment earnings on
pension plan investments
LEOFF 1
LEOFF 2
PERS 1
Differences between expected and actual experience
Changes of assumptions
PERS 2/3
Net difference between projected and actual investment earnings on
pension plan investments
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Deferred outflows of resources related to pensions resulting from the city’s contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability
in the year ended December 31, 2021. Other amounts reported as deferred outflows and deferred
inflows of resources related to pensions will be recognized in pension expense as follows:
Firemen's Pension
Plan Description
Plan Administration: The Firemen’s’ Pension Fund (FPF) is administered by the City of Pasco.
The plan is a single employer defined benefit pension plan that provides pensions for
firefighters that were hired prior to 1970.
The Municipal Firefighters' Pension board consists of the following five members, ex officio,
the mayor, or in a city of the first class, the mayor or a designated representative who shall be
an elected official of the city, who shall be chairperson of the board, the city comptroller or
clerk, the chairperson of finance of the city council, or if there is no chairperson of finance, the
city treasurer, and in addition, two regularly employed or retired firefighters elected by secret
ballot of those employed and retired firefighters who are subject to the jurisdiction of the board.
The members to be elected by the firefighters shall be elected annuall y for a two-year term.
The two firefighters elected as members shall, in turn, select a third eligible member who shall
serve as an alternate in the event of an absence of one of the regularly elected members. In case
a vacancy occurs in the membership of the firefighters or retired members, the members shall
in the same manner elect a successor to serve the unexpired term. The board may select and
appoint a secretary who may but need not be a member of the board. In case of absence or
inability of the chairperson to act, the board may select a chairperson pro tempore who shall
during such absence or inability to perform the duties and exercise the powers of the
chairperson. A majority of the members of the board shall constitute a quorum and have power
to transact business.
Benefits provided. All benefit terms are in statutes RCW 41.16, 41.18, and 41.26. FPF provides
retirement, disability, and death benefits. Each firefighter in service on March 1, 1970 receives
the greater of the benefit payable under the Washington Law Enforcement Officers' and
Firefighters' Retirement System and the benefits available under the provisions of prior law.
Where benefits under the old law exceed those under the new law for any firefighter, the excess
benefits are paid from the FPF of the city employing the member on March 1, 1970.
Year ended
December 31:PERS 1 PERS 2/3 LEOFF 1 LEOFF 2
2022 $ (323,863) $ (2,630,081) $ (186,488) $ (3,520,103)
2023 (296,776) (2,456,690) (170,578) (3,278,469)
2024 (280,614) (2,362,740) (160,956) (3,095,904)
2025 (321,332) (2,532,704) (184,023) (3,489,056)
2026 - (42,544) (24,679)
Thereafter - 9,510 178,498
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
All members are retired and drawing benefits. Benefit terms provide for cost-of-living
adjustments to each member's retirement benefit. There are two types of increases: escalation
by salary in proportion to the current salary of the rank from which the firefighter retired, or an
increase proportionate to the increase in the Seattle-area CPI, with the change computed
annually. Regardless of the increase (or decrease) in the CPI, the benefits are increased at least
2% each year. The former applies to firefighters who retired from service after 1969, their
survivors, and to firefighters who retired for duty disability (but not their survivors) after 1969.
The latter applies to all other types of monthly benefits.
Employees Covered by Benefit Terms: Plan membership is limited to active members of the
Firefighters' Pension Fund (FPF) as of March 1, 1970. On that date, the Washington Law
Enforcement Officers' and Firefighters' System (LEOFF) was established. FPF is responsible
for paying the pensions of those members retired prior to March 1, 1970 and for providing the
"excess benefit", the excess of FPF formula benefits over the LEOFF benefits. Therefore, the
plan is closed to new members.
At December 31, 2021, the benefit terms covered the following employees:
Contributions. As long as the FPF provides for benefits to covered members, the City will be
eligible to receive a share of the State's distribution of the fire insurance premium taxes. The
amount the City receives is 25% of all monies received by the State from taxes on fire insurance
premiums. Contributions can also come from taxes paid pursuant to the provisions of RCW
41.16.060. This statute require that each municipality levy up to $0.45 (only $0.225 of which
can be in excess of the property tax limit pursuant to RCW 84.52.043) per $1,000 of assessed
valuation, based on reports by a qualified actuary, to maintain the fund.
Reporting Period contributions: $98,371
Investments
The Fire Pension Plan does not have an investment policy for investing pension funds. At year
end investments are reported at quoted market price as provided by our broker, US Bank. At
December 31, 2021 the Fire Pension Plan had the following investments, reported at fair market
value.
Federal Agency $ 6,700
Mutual Funds $ 3,540,655
Rate of Return. For the year ended December 31, 2021, the annual money-weighted rate of
return on pension plan investments, net of pension plan investment expense, was 21.17%. The
money-weighted rate of return expresses investment performance, net of investment expense,
adjusted for the changing amount actually invested.
Category Count
Inactive employees, spouses, or beneficiaries currently received benefit payments 6
Inactive employees entitled to but not yet receiving benefit payments -
Active employees -
Total 6
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Actuarial Assumptions: The total pension liability in the December 31, 2021 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in
the measurement, unless otherwise specified:
Discount Rate 7.00%
Investment Rate of Return 7.00%
Inflation 2.75%
Salary increases 3.25%
Mortality rates were based on tables from the Society of Actuaries.
Experience studies come from the State of Washington. The last economic experience study
was done in 2021 and the last demographic experience study was 2018.
There were no ad hoc postemployment benefit changes (including ad hoc COLAs) to the plan.
Discount rate. The discount rate used to measure the total pension liability was 7.0%. The
projection of cash flows used to determine the discount rate assumed City contributions were
equal to the statutorily calculated contribution of state fire insurance premiums for the next 20
years. Based on this assumption, the pension plan's fiduciary net position was projected to be
available to make all projected future benefit payment for current plan members. Therefore,
the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of liabilities to changes in the discount rate. Sensitivity of the total and net pension
liability to changes in the discount rate. The total and net pension liability of the City, as well
as what the City's total and net pension liability would be if they were calculated using a
discount rate that is one percentage point lower (6.00%) or one percentage point higher (8.00%)
follows:
1% Decrease
6.00%
Current Discount
Rate 7.00%.
1% Decrease
8.00%
1,035,366$ 950,340$ 876,599$
1% Decrease
6.00%
Current Discount
Rate 7.00%.
1% Decrease
8.00%
(3,064,693)$ (3,149,719)$ (3,223,460)$
Total Pension Liability (Asset)
Net Pension Liability (Asset)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Fiduciary Net Position. The components of the net pension liability of the City on December
31, 2021, were as follows:
The following table presents the changes in Net Pension Liability for year ending December
31, 2021.
Deferred Outflows of Resources and Deferred Inflows of Resources
On December 31, 2021, the City recognized a pension expense of (-$611,311). The City reported
deferred outflows of resources and deferred inflows of resources related to the Fire Pension Plan
from the following sources:
Total Pension Liability 950,340$
Plan Fiduciary Net Position 4,100,059
Net Pension Liability ( Asset) (3,149,719)$
Plan Fidciary Net Position as a
% of Total Pension Liability 431.43%
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balances at January 1, 2021 1,234,876$ 3,367,117$ (2,132,241)$
Changes for the year:
Interest 83,760 - 83,760
Change in benefit terms - - -
Differences between expected and actual experience (248,065) - (248,065)
Change in assumptions (43,633) - (43,633)
Contributions- cities contribution - 98,371 (98,371)
Contributions- employee - - -
Net investment income - 714,634 (714,634)
Benefit payments, including refunds of employee contribution (76,598) (76,598) -
Administrative expense - (3,465) 3,465
Other changes - - -
Net changes (284,536) 732,942 (1,017,478)
Balances at December 31, 2021 950,340$ 4,100,059$ (3,149,719)$
Changes in Net Pension Liability
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience -$ -$
Changes of assumptions - -
Net Difference between projected and actual earnings on
pension plan investments - (545,812)
Contributions subsequent to the measurement date - -
TOTAL -$ (545,812)$
Firemen's Pension Plan
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in the pension expense as follows:
The Fire Pension Fund is reported in the City’s comprehensive annual financial report as a
Fiduciary Fund. Pension Liability, Pension Asset, Deferred Inflows and Deferred Outflows are
reported in the Government Wide Statement of Net Position. A copy of the plan statements can
be obtained by request at the following address: City of Pasco 525 N 3rd Ave., Pasco, WA 99301.
NOTE 15: Defined Benefit Other Postemployment Benefit (OPEB) Plans
The following table represents the aggregate OPEB amounts for all plans subject to the
requirements of GASBS 75 for the year 2021:
LEOFF 1 – Postemployment Healthcare Plan
In addition to the pension benefits outlined in Note 13, Employee Retirement Systems and
Pension Plans, the City of Pasco provides post-retirement health care benefits via a single
employer defined benefit plan in accordance with state statute for retired police officers and
firefighters who are eligible for lifetime healthcare under the Law Enforcement Officers’ and
Firefighters’ (LEOFF1) plan one retirement system.
Plan Description: As required by the Revised Code of Washington (RCW) Chapter 41.26, the
City provides lifetime medical care for members of the Law Enforcement Officers and
Firefighters (LEOFF) retirement system hired before October 1, 1977, under a defined -benefit
healthcare plan administered by the City. The plan is funded on a pay-as-you-go basis and there
are no assets accumulated in a qualifying trust.
Benefits Provided: The members' necessary hospital, medical, prescription and nursing care
expenses not payable by worker's compensation, Medicare, or other insurance are covered.
Year Ended
December 31 Amount
2022 (128,531)
2023 (194,720)
2024 (126,785)
2025 (95,776)
2026 -
Thereafter -
OPEB Liabilities 10,605,392$
OPEB Assets (3,899,640)
Deferred Outflows of Resources -
Deferred Inflows of Resources (714,092)
OPEB Expense (3,282,407)$
Aggregate OPEB Amounts - All Plans
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Employees covered by benefit terms: At December 31, 2021, the following employees were
covered by the benefit terms:
Contributions: The City pays benefits as they come due.
Contributions rate: Benefits Due
Reporting period contributions: $ 508,935
Total OPEB Liability: The City’s total OPEB liability was valued as of December 31, 2021 and
was used to calculate the total OPEB liability measured as of December 31, 2021.
Actuarial Assumptions: The total OPEB liability in the December 31, 2021 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified:
Discount Rate: 1.84%
Inflation: 2.75%
Salary Increases: 3.25%
Healthcare cost trend rates
Pre-Medicare: n/a
Medicare: 4.80%*
Mortality Rates are based on SOA Tables.
Projections of the sharing of benefit-related costs are based on an established
pattern of practice.
Experience studies come from the State of Washington. The last economic
experience study was done in 2021 and the last demographic experience study was
from 2018.
Inactive employees (retirees) pay 0% of the cost of benefits.
There were no ad hoc postemployment benefit changes (including ad hoc COLAs)
to the plan.
*Trending down to 3.94% over 54 years. Applies to calendar years.
Discount Rate: The discount rate used to measure the total OPEB liability was 1.84%. The City’s
OPEB Plan is an unfunded plan, therefore the discount rate was set to the rate of tax-exempt,
high-quality 20-year municipal bonds, as of the valuation date.
Trust Assets: There are no assets accumulated in a trust that meets the criteria in paragraph 4 of
GASB 75 to pay related benefits.
Category Count
Inactive employees, spouses, or beneficiaries currently receiving benefit payments:29
Inactive employees entitled to but not yet receiving benefit payments: -
Active employees 1
Total 30
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Sensitivity of the total OPEB liability to changes in the discount rate. The total OPEB liability
of the City, as well as what the City’s total OPEB Liability would be if it were calculated using
a discount rate that is one point lower (0.84%) or one percentage point higher (2.84%) follows:
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The
healthcare trend for this valuation started at 4.80% and decreased to 3.94% over 53 years. The
total OPEB liability of the City, as well as what the City’s total OPEB Liability would be if it
were calculated using a healthcare cost trend rates that is one point lower (3.80%) or one
percentage point higher (5.80%) than current healthcare cost trend rates follows:
Changes in the Total OPEB Liability
The changes in total OPEB liability for 2021 are presented in the following table.
There is a schedule of sources of changes in the Total OPEB Liability presented as RSI,
immediately following the notes to the financial statements. Because this plan is unfunded there
are no disclosures relating to Fiduciary Net Position or investment experience.
There were no Deferred Outflows or Deferred Inflows of resources related to this OPEB Plan for
2021.
1 % Decrease Current Rate 1 % Increase
0.84%1.84% 2.84%
11,669,974$ 10,605,392$ 9,685,302$
Total OPEB Liability (asset)
3.80%4.80% 5.80%
9,742,810$ 10,605,392$ 11,579,175$
Total OPEB Liability (asset)
Plan Fiduciary Net Total OPEB
Total OPEB Position Liability
Liability (a)(b)(c) = (a)-(b)
Balances at January 1, 2021 12,969,448$ -$ 12,969,448$
Changes for the year:
Service Cost 73,652 - 73,652
Interest 255,773 - 255,773
Changes of Benefit Terms - -
Differences Between Expected and Actual Experience (976,545) (976,545)
Changes in Assumptions (1,208,001) (1,208,001)
Benefit payments (508,935) (508,935)
Net changes (2,364,056) - (2,364,056)
Balance as of December 31, 2021 10,605,392$ - 10,605,392
Schedule of changes in the Total OPEB Liability
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Fire Pension – Postemployment Healthcare Plan
Plan Description: As required by the Revised Code of Washington (RCW) Chapter 41.26, the
City provides lifetime medical care for members of the Law Enforcement Officers and Firefighters
(LEOFF) retirement system hired before October 1, 1977 under a single employer, defined benefit
healthcare plan administered by the City. The Old Fire Pension OPEB covers firefighters that were
hired prior to the creation of the LEOFF 1 retirement system.
Benefits Provided: The members' necessary hospital, medical, and nursing care expenses not
payable by worker's compensation, social security, insurance provided by another employer, or
other pension plan, or any other similar source are covered. Most medical coverage for eligible
retirees is provided by the City's employee medical insurance program. Under authorization of the
LEOFF Disability Board, direct payment is made for other retiree medical expenses not covered
by standard medical plan benefit provisions. Members of the Fire Pension plan purchase medical
insurance through the City's medical insurance program.
Employees Covered by Benefit Terms: At December 31, 2021 (the census date), the benefit terms
covered the following employees:
Contributions: Funding for LEOFF retiree healthcare costs is provided entirely by the City as
required by the RCW. The City's funding policy is based upon pay-as-you-go financing
requirements for any requirements in excess of amounts previously set aside in the Fire Pension
OPEB trust fund. Reporting period contributions: $0.
Net OPEB Liability: The City's total OPEB liability was valued as of December 31, 2021, and
was used to calculate the net OPEB liability measured as of December 31, 2021.
Actuarial Assumptions: The total OPEB liability in the December 31, 2021, actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified:
Discount Rate: 7.00%
Investment Rate of Return: 7.00%
Inflation: 2.75%
Category Count
Inactive employees, spouses, or beneficiaries currently receiving benefit payments:5
Inactive employees entitled to but not yet receiving benefit payments: -
Active employees -
Total 5
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Healthcare cost trend rates:
Pre-Medicare: n/a
Medicare: 4.80%
Salary Increases: n/a
Mortality Rates were based on tables from the Society of Actuaries.
Projections of the sharing of benefit-related costs are based on an established pattern of
practice.
Experience studies come from the State of Washington. The last economic experience
study was done in 2021 and the last demographic experience study was 2018.
Inactive employees (retirees) pay 0% of the cost of benefits.
There were no ad hoc postemployment benefit changes (including ad hoc COLAs) to the
plan.
There were no changes between the measurement date and the report date that are expected
to have a significant effect on the total OPEB liability.
Discount Rate: GASB 75 allows the use of a discount rate that is up to the expected long-term rate
of return on the assets in the Trust set aside to pay benefits, if the plan sponsor makes regular
contributions to the Trust such that the assets are not depleted at any point in the future. If the
plans' actuary determines that contributions are not sufficient to keep the Trust funded, a blend of
the long-term rate of return and the yield or index rate for 20 -year, tax-exempt municipal bonds
will be used for the periods when the Trust funds are not sufficient to cover benefit payments.
Based on this requirement, and with the approval of the plan sponsor, the discount rate used to
measure the total OPEB liability is 7.00%.
Sensitivity of Liabilities to Changes in the Discount Rate and Healthcare Cost Trend Rate :
Sensitivity of the total and net OPEB liability to changes in the discount rate. The total and net
OPEB liability of the City, as well as what the City's total and net OPEB liability would be if they
were calculated using a discount rate that is one percentage point lower (6.00%) or one percentage
point higher (8.00%) follows:
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The healthcare
trend for this valuation started at 4.80% and decreased to 3.94% over 53 years.
1% Decrease
6.00%
Current Discount
Rate 7.00%.
1% Decrease
8.00%
683,013$ 650,546$ 620,869$
Net OPEB Liability (Asset) (3,867,173)$ (3,899,640)$ (3,929,317)$
Total OPEB Liability (Asset)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The total OPEB liability of the City, as well as what the City's total OPEB liability would be if it
were calculated using healthcare cost trend rates that are one percentage point lower (3.80%) or
one percentage point higher (5.80%) than current healthcare cost trend rates follows:
Changes in the Net OPEB Liability
The changes in net OPEB liability for 2021 are presented in the following table.
1% Decrease
3.80%
Current Discount
Rate 4.80%
1% Decrease
5.80%
622,987$ 650,546$ 680,148$
Net OPEB Liability (Asset) (3,927,202)$ (3,899,640)$ (3,870,038)$
Total OPEB Liability (Asset)
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability
(a)(b)(c) = (a)-(b)
Balances at January 1, 2021 1,137,445$ 3,632,142$ (2,494,697)$
Changes for the year:
Service Cost - - -
Interest 84,760 - 84,760
Differences between expected and
actual experience (414,771) (414,771)
Change in assumptions (69,348) - (69,348)
Net investment income - 1,006,937 (1,006,937)
Contributions - - -
Benefit payments (87,540) (87,540) -
Administrative expense - (1,353) 1,353
Other changes - - -
Net changes (486,899) 918,044 (1,404,943)
Balances at December 31, 2021 650,546$ 4,550,186$ (3,899,640)$
Changes in the Net OPEB Liability
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
For the report year ended December 31, 2021, the City recognized an OPEB expense of
(-$918,352). The City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Long-Term Expected Real Rate of Return: The long-term expected rate of return is determined
using the long-term rates of return developed by the State of Washington in their 2021 economic
experience study.
Investments: The Old Fire OPEB Plan does not have an investment policy. The board approves
any purchase or sale transactions regarding assets of the plan. The plan has only one investment,
a mutual fund that was purchased in 2003. The investment is detailed in the following table.
Old Firemen's Plan Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and acutal experience -$ -$
Changes in assumptions - -
Net difference between projecte and actual investment
earnings on pension plan investment - (714,092)
Contribution subsequent to the measurement date -
Total -$ (714,092)$
Liability Amount
Current OPEB Liabitlity 94,580$
Non-Current OPEB Liability 555,966
Total OPEB Liability 650,546$
Name of Investment Type Balance as of
12/31/21
Rating by
Morningstar
2021 YTD
Return
Washington Mutual Investers Fund-A Mutual Fund $4,500,705 Gold 28.07%
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The Old Fire OPEB Plan does not have a specific reserve policy or requirement, however all
assets of the plan are considered assets of the trust and as such are obligated for payment of
current and future benefits to plan members.
NOTE 16: CONTINGENCIES AND LITIGATION
The City has recorded in its financial statements all material liabilities, including applicable
estimates for situations that are not yet resolved but where, based on available information,
management believes it is probable that the City will have to make payment. The City has closely
reviewed all pending claims and it is management’s opinion, the City's insurance policies and self-
insurance reserves are adequate to pay all material known or pending claims. As discussed in Note
8, Long-term Debt, the City is contingently liable for repayment of debt.
The City participates in a number of Federal and State assisted programs. These grants are subject
to audit by the grantors or representatives. Such audits could result in requests for reimbursement
to grantor agencies for expenditures disallowed under the terms of the grants. However, City
management believes that such disallowances, if any, will be immaterial.
NOTE 17: SUBSEQUENT EVENTS
On March 2, 2020, the City passed Ordinance No. 4483 establishing Local Improvement District
(LID) No. 151 to support the construction of a new sanitary sewer trunk line and other sewer
improvements in the Broadmoor area located in the northwest section of the City. The total
estimated cost of the improvements is $3,000,000 and estimated assessment against properties is
$3,300,000. On December 7th, 2020, a contract for the construction of the sewer trunk line was
awarded. The completion of the full project required interim funding in the form of a bond
anticipation note which was internally funded as a short-term inter-fund loan from the General
Fund. The City anticipates the project will be complete in May 2022 and will likely be funded
through an inter-fund loan. The term and rate of the potential inter-fund loan are unknown at this
time, however the City will refer to conservative market rates.
On January 24, 2022, the City adopted Resolution 4144 authorizing execution of a loan
agreement with the Department of Ecology in the amount of $21,511,498 for the purpose of
Phase 1 Construction for the Wastewater Treatment Plant. The terms of the loan are rate of 1.2%
for 20 years. This is an ongoing project and was included in the current capital budget, the
funding source was anticipated to come from the Department of Ecology which was secured in
2022.
NOTE 18: PRIOR PERIOD ADJUSTMENT
The following table itemizes the prior period adjustments made in 2021, along with the purposes
for the adjustments:
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Purpose for prior period adjustments:
1. At the end of 2020 an estimate of the amount of bad debt for ambulance accounts was made
based on past activity. However, with COVID and the cessation of collections activity for
some time the needed adjustment in 2021 was higher due to 2020 billings that remained
outstanding.
2. Funds returned to fund 194 due to change in scope and funding. Project funding was made
available through unanticipated pandemic related grants.
3. Projects originally planned as capital in nature were determined to be maintenance projects.
The value of these projects was removed from CWIP. These should have been a prior year
expense. This adjustment decreased CWIP directly on the Statement of Net Position, see Note
5 for details. 4. Implementation of GASB 83, Asset Retirement Obligation, resulted in recording immaterial
closure cost for decanting drying bed for street sweeping waste.
5. There was a depreciation error in the system during 2020 resulting in some assets not being
depreciated for the full year.
NOTE 19: COVID-19 Pandemic
In February 2020, the Governor of the state of Washington declared a state of emergency in
response to the spread of the deadly new virus known as COVID-19. In the months following the
declaration, precautionary measures to slow the spread of the virus were ordered. These
measures included closing schools, cancelling public events, limiting public and private
gatherings, and restricting business operations, travel, and non-essential activities.
Purpose for
Adjustment (Decrease)Increase Adjustment to Fund
Balance / Net Position
Governmental Funds:
Ambulance Fund 1 (11,337)$ -$ (11,337)$
Economic Development Fund 2 - 112,666 112,666
Total Other Governmental Funds (11,337) 112,666 101,329
Total Governmental Funds:(11,337) 112,666 101,329
Business-Type Funds:
Water/Sewer Utility Fund 3 (26,488) - (26,488)
Water/Sewer Utility Fund 2 (112,666) - (112,666)
Water/Sewer Utility Fund 3 (378,774) - (378,774)
Water/Sewer Utility Fund 4 (9,957) - (9,957)
Internal Service Business Type 5 (227,777) - (227,777)
Total Business-Type Funds:(755,662) - (755,662)
Total prior period adjustments - all funds (766,999) 112,666 74,841
Government-wide Financial Statements:
Internal Service Government Type 5 (696,137) - (696,137)
Statement of Net Position 2 (1,950) - (1,950)
(698,087) (698,087)
Total Government-wide Governmental Activities (709,424)$ 112,666$ (596,758)$
Prior Period Adjustments
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The COVID-19 pandemic has impacted the City of Pasco’s finances through reduction in
tourism recreation related economic activity and revenue. This effect was especially impactful in
2020, but 2021 reflected improved activity. Despite these challenges, the area has been insulated
from severe economic factors due to reasonable cost of living, and well-paying stable jobs. The
area also has a diversified economy including but not limited to agriculture, wine, research, and
Hanford cleanup activity. Due to these factors, the area has been able to attract other industrial
businesses to further boost the local economy like Volm Companies, AutoZone and Amazon in
recent times. COVID-19 has been devastating to our residents, small businesses, and restaurant
and hospitality industry. However, diversification of the local economy and stable jobs have
allowed the City to weather the crises while issuing single family home permits at a greater rate
than in 2019. Visit Tri-Cities, the area’s regional tourism and visitor’s association, anticipates a
return to normal tourism operations by end of 2022 which began improving in the latter half of
2021 with several area tourism events resuming. Full recovery is dependent on factors that the
City cannot control, like vaccinations or new strains. To mitigate such factors the City took a
significant and active role in testing and vaccination efforts in the area.
While the City has seen its delinquency in accounts receivable increase since the pandemic
began; federal, state, and local assistance was made available to residents needing help to pay for
their utilities. The City anticipates some delinquent accounts will be uncollectible, but the
amount is expected to be immaterial in nature. Similarly, City does not anticipate any of its
capital projects to be cancelled due to inability to continue to provide funding. The City has
ample reserves to continue with projects in progress. Due to the strong growth, need to maintain
our service level and strong financial condition, the City has continued to add more staff as
planned. The City does not anticipate reduction in workforce in the near future.
In conclusion, while COVID-19 pandemic has been unprecedented in nature and has impacted
our City and its residents negatively, we do not at this time anticipate any substantial changes to
revenues and expenditures in near future. The length of time these measures will continue to be
in place, and the full extent of the financial impact on the city is unknown at this time.
In 2021, the City entered a contractual agreement with the Washington State Department of
Health to provide services related to the administration and operation of Coronavirus
Vaccination Sites. While the dollars received, $904,347, can be considered a charge for services
the support of a multiregional vaccination site is atypical to regular City services. Therefore, we
reported as Intergovernmental Revenue.
NOTE 20: Asset Retirement Obligation (ARO)
The City of Pasco has estimated closure costs associated with a decanting drying bed for waste
collected from street sweeping. As of December 31, 2021, the reported estimated liability for
these costs was $10,363. The City also reports restricted cash in this amount as a reserve for this
liability. The estimated closure costs are a result of local permitting regulations through the
Benton-Franklin Health District. The estimated closure costs are determined by an independent
quote from a company qualified to clean the drying bed of any remaining waste as well as
estimated labor costs based on current rates. These costs would only be incurred if the drying bed
area would need to be suddenly vacated which is not anticipated for the foreseeable future. There
is no tangible asset associated with this liability as it is only an open-air area of immaterial value
located on City premises.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
REQUIRED SUPPLEMENTARY INFORMATION
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Old Fire OPEB Fund
A schedule of contributions for the Old Fire OPEB Fund is not included because the plan is fully
funded and there have been no contributions for the past five years. The OPEB plan's fiduciary
net position is projected to have sufficient funds to pay all projected benefit payment for current
plan members. Therefore, there are no future projected contributions.
2017 2018 2019 2020 2021
Total OPEB liability
Service cost -$ -$ -$ -$ -$
Interest 121,181 121,446 128,678 89,471 84,760
Changes of benefit terms - - - - -
Differences between expected and actual experience - 61,074 (295,126) (60,969) (414,771)
Changes of assumptions - - (250,033) - (69,348)
Benefit payments, including refunds of contributions (144,838) (90,659) (87,778) (91,040) (87,540)
Implicit Rate Subsidy Credit - - - - -
Net change in total OPEB liability (23,657) 91,861 (504,259) (62,538) (486,899)
Total OPEB liability - beginning 1,636,038 1,612,381 1,704,242 1,199,983 1,137,445
Total OPEB liability - ending 1,612,381 1,704,242 1,199,983 1,137,445 650,546
Plan fiduciary net position
Net investment income 507,854 (84,994) 715,231 254,531 1,006,937
Contributions - employer - - - - -
Contributions - employee - - - - -
Benefit payments, including refunds of contributions (144,838) (90,659) (87,778) (91,040) (87,540)
Administrative expense (4,048) (2,542) (1,990) (1,990) (1,353)
Other - - - - -
Net change in plan fiduciary net position 358,968 (178,195) 625,463 161,501 918,044
Plan fiduciary net position - beginning 2,664,405 3,023,373 2,845,178 3,470,641 3,632,142
Plan fiduciary net position - ending 3,023,373 2,845,178 3,470,641 3,632,142 4,550,186
Net OPEB liability ending (1,410,992)$ (1,140,936)$ (2,270,658) (2,494,697) (3,899,640)
Plan fiduciary net position as a % of Total OPEB liability 187.5% 166.9% 289.2% 319.3% 699.4%
Covered-employee payroll N/A N/A N/A N/A N/A
Net OPEB liability as a % of covered-employee payroll N/A N/A N/A N/A N/A
Notes to Schedule:
*Until a full 10-year trend is compiled, only information for those years available is presented. The
City adopted GASB 75 for the fiscal year ending December 31, 2017.
Schedule of Changes in Net OPEB Liability and Related Ratios
Old Fire OPEB
For the year ended December 31, 2021
Last 10 Fiscal Years*
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
LEOFF 1 OPEB Fund
The Schedule of Investment Returns was not included for this plan because there are no fund
assets to invest.
2017 2018 2019 2020 2021
Annual money-weighted rate of return, net of investment
expense 19.61% -2.86% 25.54% 7.43% 28.07%
Notes to Schedule:
*Until a full 10-year trend is compiled, only information for those years available is presented.
Last 10 Fiscal Years*
Schedule of Investment Returns
Old Fire OPEB
For the year ended December 31, 2021
2017 2018 2019 2020 2021
547,515$ 609,121$ 633,129$ 526,399$ 508,935$
547,515 609,121 633,129 526,399 508,935
- - - - -
152,318$ 158,030$ 168,152$ 174,458$ 177,000$
359% 385% 377% 302% 288%
Entry Age
Not Applicable
December 31, 2021
1.84%
4.80%
Covered Payroll
Healthcare Cost Trend*Until a full 10 year trend is compiled, only information for those years
available is presented. The City adopted GASB 75 for the fiscal year
ending December 31, 2017.
Contribution as a % of Covered
Notes to Schedule
Actuarial Cost Method
Asset Valuation Method
Measurement Date
Discount Rate
Last 10 Fiscal Years*
Actuarially Determined
Contribution in relation to the
actuarially determined contribution
Contribution deficiency (excess)
Schedule of City Contributions
LEOFF 1 OPEB
For the year ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Old Fire Pension Fund
2017 2018 2019 2020 2021
Total OPEB liability
Service cost 89,165$ 95,746$ 99,097$ 61,124$ 73,652$
Interest 556,341 557,569 560,203 330,804 255,773
Changes of benefit terms - - - - -
Differences between expected and actual experience - - (2,410,901) (84,229) (976,545)
Changes of assumptions - - (1,607,238) 956,821 (1,208,001)
Benefit payments (545,401) (609,121) (633,129) (526,399) (508,935)
Implicit Rate Subsidy Credit - - -
Net change in total OPEB liability 100,105 44,194 (3,991,968) 738,121 (2,364,056)
Total OPEB liability - beginning 16,078,996 16,179,101 16,223,295 12,231,327 12,969,448
Total OPEB liability - ending 16,179,101 16,223,295 12,231,327 12,969,448 10,605,392
Covered-employee payroll**152,318$ 158,030$ 168,152$ 174,458$ 177,000$
Total OPEB liability as a % of covered-employee payroll 10621.9% 10266.0% 7274.0% 7434.1% 5991.7%
Notes to Schedule:
*Until a full 10-year trend is compiled, only information for those years available is presented. The
City adopted GASB 75 for the fiscal year ending December 31, 2017.
Last 10 Fiscal Years*
Schedule of Changes in Total OPEB Liability and Related Ratios
LEOFF 1 OPEB
For the year ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Fire Pension Fund - For Years Ended:
Total Pension Liability 2015 2016 2017 2018 2019 2020 2021
Service Cost -$ -$ -$ -$ - - -
Interest 82,477 79,996 77,207 87,555 75,910 85,837 83,760
Changes of benefit terms - - - - - -
Differences between expected and actual
experience - - 79,758 (2,791) 189,364 (21,644) (248,065)
Changes of assumptions - - 9,808 - (2,010) - (43,633)
Benefit payments, including refunds of employee
contributions (116,770) (118,053) (120,503) (128,399) (131,781) (111,111) (76,598)
Net change in total pension liability (34,293) (38,057) 46,270 (43,635) 131,483 (46,918) (284,536)
Total pension liability - beginning 1,220,026 1,185,733 1,147,676 1,193,946 1,150,311 1,281,794 1,234,876
Total pension liability - ending 1,185,733$ 1,147,676$ 1,193,946$ 1,150,311$ 1,281,794$ 1,234,876$ 950,340$
Plan Fiduciary Net Position
Net investment income (19,689)$ 267,948$ 384,118$ (139,435)$ 515,983$ 364,053$ 714,634$
Contributions- employer 54,506 58,193 63,503 73,414 81,458 89,252 98,371
Contributions - employee - - - - - - -
Benefit payments, including refunds of employee
contributions (116,770) (118,053) (120,503) (128,399) (131,781) (111,111) (76,598)
Administrative expense (3,398) (7,914) (5,870) (4,923) (1,689) (2,098) (3,465)
Net change in plan fiduciary net position (85,351) 200,174 321,248 (199,343) 463,971 340,096 732,942
Plan fiduciary net position- beginning 2,326,321 2,240,970 2,441,145 2,762,393 2,563,050 3,027,021 3,367,117
Plan fiduciary net position-ending 2,240,970$ 2,441,144$ 2,762,393$ 2,563,050$ 3,027,021$ 3,367,117$ 4,100,059$
Net Pension Liability
City's net pension liability - Ending (1,055,237)$ (1,293,468)$ (1,568,446)$ (1,412,739)$ (1,745,227)$ (2,132,241)$ (3,149,719)$
Plan fiduciary net position as a percentage of the
total pension liability 189.0%212.7%231.4%222.8%236.2%272.7%431.4%
Covered employee payroll - - - - - - -
City's net pension liability as a percentage of
covered employee payroll n/a n/a n/a n/a n/a n/a n/a
Notes to schedule:
Schedule of Changes in the City's Net Pension Liability and Related Ratios
The City adopted GASB 68 for the fiscal year ending December 31, 2015.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2015 2016 2017 2018 2019 2020 2021
Actuarially Determined Contribution (ADC)54,506$ 58,193$ 63,503$ 73,414$ 81,458$ 89,252$ 98,371$
Less Contributions Made (54,506) (58,193) (63,503) (73,414) (81,458) (89,252) (98,371)
Contribution Deficiency (excess)- - - - - - -
Covered-Employee Payroll -$ -$ -$ -$ -$ -$ -$
Contributions as a percentage of covered employee
payroll 0%0%0%0%0%0%0%
Notes to Schedule:
Actuarial Cost Method: Entry-age normal, level percent of pay
Amortization Method: Closed period, level percent of pay
Amortization Period: 10 years
Inflation: 2.75%
Assumed Payroll Growth: 3.250%
Rate of Returen on Assets: 7.00%
Mortality Rate: Based on SOA Tables
Retirement Rates: NA
This schedule will be built prospectively until it contains 10 years of data
Contributions came from State Fire Insurance Premiums
Schedule of Contributions
Fire Pension Fund
2015 2016 2017 2018 2019 2020 2021
Annual Money Weighted Rate of
Return, Net of Investment Expense -0.86% 12.14% 15.94% -5.10% 20.34% 12.07% 21.17%
Schedule of Investment Returns - Fire Pension Plan
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
State Plans
*GASB 68 requires a disclosure of the changes in Net Pension Liability for the last 10 fiscal
years, or as years are available. These schedules will be built prospectively until they contain ten
years of data.
PERS PLAN 1 2014 2015 2016 2017 2018 2019 2020 2021
Employer's percentage of the net pension liability 0.097647%0.102321%0.098322%0.099661%0.093918%0.091766%0.086902%0.090217%
Employer's proportionate share of the collective net
pension liability 4,919,014$ 5,352,340$ 5,280,355$ 4,728,992$ 4,194,410$ 3,528,728$ 3,068,110$ 1,101,761$
Covered payroll 10,817,340 11,375,820 11,376,115 12,505,985 13,010,425 13,173,229 13,572,180 14,936,438
Employer's proportionate share of the net pension
liability as a percentage of covered employee payroll 45.47%47.05%46.42%37.81%32.24%26.79%22.61%7.38%
Plan fiduciary net position as a percentage of the total
pension liablity 61.19%59.10%57.03%61.24%63.22%67.12%68.64%88.74%
PERS PLAN 2/3
Employer's percentage of the net pension liability 0.114462%0.125949%0.122675%0.126788%0.120274%0.118486%0.113176%0.115916%
Employer's proportionate share of the collective net
pension liability 2,313,690 4,500,230 6,176,589 4,405,277 2,053,572 1,150,902 1,447,457 (11,547,099)
Covered payroll 10,474,619 11,212,390 11,878,130 12,471,204 13,008,696 13,173,229 13,572,180 14,936,438
Employer's proportionate share of the net pension
liability as a percentage of covered employee payroll 22.09%40.14%52.00%35.32%15.79%8.74%10.66%-77.31%
Plan fiduciary net position as a percentage of the total
pension liablity 93.29%89.20%85.82%90.97%95.77%97.77%97.22%120.29%
LEOFF 1
Employer's percentage of the net pension asset 0.067804%0.067488%0.066826%0.066934%0.067877%0.069031%0.069045%0.067071%
Employer's proportionate share of the collective net
pension asset (822,321) (813,380) (688,499) (1,015,536) (1,232,308) (1,364,474) (1,303,921) (2,297,559)
Covered payroll 219,984 207,267 226,769 197,219 162,162 163,046 181,036 197,253
Employer's proportionate share of the net pension
asset as a percentage of covered employee payroll -373.81%-392.43%-303.61%-514.93%-759.92%-836.86%-720.26%-1164.78%
Plan fiduciary net position as a percentage of the total
pension liablity 126.91%127.36%123.74%135.96%144.42%148.78%146.88%187.45%
LEOFF 2
Employer's percentage of the net pension asset 0.365709%0.405844%0.400187%0.427714%0.469232%0.492544%0.468151%0.479684%
Employer's proportionate share of the collective net
pension asset (4,853,116) (4,171,265) (2,327,608) (5,935,285) (9,526,433) (11,410,732) (9,549,597) (27,862,033)
Covered payroll 10,497,629$ 12,154,638$ 12,622,501$ 14,338,666$ 17,145,685$ 17,210,964$ 17,895,833$ 18,984,492$
Employer's proportionate share of the net pension
asset as a percentage of covered employee payroll -46.23%-34.32%-18.44%-41.39%-55.56%-66.30%-53.36%-146.76%
Plan fiduciary net position as a percentage of the total
pension liablity 116.75% 111.67% 106.04% 113.36% 118.50% 119.43% 115.83% 142.00%
Schedule of Proportionate Share of the Net Pension Liability/(Asset)
As of June 30
Last 10 Fiscal Years*
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
*GASB 68 requires a disclosure of the changes in Net Pension Liability for the last 10 fiscal
years, or as years are available. These schedules will be built prospectively until they contain ten
years of data.
PERS PLAN 1 2014 2015 2016 2017 2018 2019 2020 2021
Statutorily or contractually required contributions 31,484$ 16,252$ 500,426$ 614,166$ 658,434$ 651,374$ 665,510$ 641,234$
Contributions in relation to the statutorily or
contractually required contributions (31,484) (16,252) (500,426) (614,166) (658,434) (651,374) (665,510) (641,234)
Contribution deficiency (excess)- - - - - - - -
Covered payroll 10,817,340 11,375,820 11,376,115 12,505,985 13,010,425 12,738,991 13,572,180 14,936,438
Contributions as a percentage of covered payroll 0.29%0.14%4.40%4.91%5.06%5.11%4.90%4.29%
PERS PLAN 2/3
Statutorily or contractually required contributions 964,775 1,140,430 649,813 850,217 999,063 1,016,896 1,099,234 1,064,529
Contributions in relation to the statutorily or
contractually required contributions (964,775) (1,140,430) (649,813) (850,217) (999,063) (1,016,896) (1,099,234) (1,064,529)
Contribution deficiency (excess)- - - - - - - -
Covered payroll 10,474,619 11,212,390 11,877,299 12,471,204 13,008,696 13,173,229 13,572,180 14,936,438
Contributions as a percentage of covered payroll 9.21%10.17%5.47%6.82%7.68%7.72%8.10%7.13%
LEOFF 2
Statutorily or contractually required contributions 549,396 635,688 660,156 763,912 937,526 909,786 965,108 1,064,529
Contributions in relation to the statutorily or
contractually required contributions (549,396) (635,688) (660,156) (763,912) (937,526) (909,786) (965,108) (1,064,529)
Contribution deficiency (excess)- - - - - - - -
Covered payroll 10,497,629$ 12,154,638$ 12,622,501$ 14,338,666$ 17,145,685$ 17,210,964$ 17,895,833$ 18,984,492$
Contributions as a percentage of covered payroll 5.23%5.23%5.23%5.33%5.47%5.29%5.39%5.61%
Last 10 Fiscal Years*
Schedue of Employer Contributions
As of December 31
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
CHIAWANA PARK
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Non-Major Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to
expenditures for particular purposes.
The City Street Fund accounts for all expenditures made for the construction, repair,
improvement and maintenance of City streets. The main sources of revenue are the motor vehicle
fuel tax and Council-approved allocation of external business utility taxes and inter-fund utility
taxes.
The Arterial Street Fund accounts for all expenditures in connection with approved projects
designated for arterial streets. The main source of revenue is the motor vehicle fuel tax.
The I-182 Traffic Impact Fund accounts for transportation impact fees and provide for
transportation, system, and right-of-way improvement costs to better serve growth and
development activity within the City.
The Street Overlay Fund accounts for funds received or expended to support the City’s
transportation system with the purpose of preserving the City’s investment in streets. The main
source of revenues is generated through Council-approved allocation of external business utility
taxes and inter-fund utility taxes.
The Community Development Block Grant Fund provides for the proper receipting and
disbursement of grant monies as set forth by the Department of Housing and Urban
Development.
The MLK Community Center Fund – The MLK Community Center Fund provides for the
maintenance and operation of the Martin Luther King Community Center. It is funded by rentals,
grants, and transfers from the general fund.
The Ambulance Utility Fund is a secondary funding source for the fire department.
This fund is supported through a monthly utility charge of $16.20 per household (2021
assessment) for service charges. The fund is also supported through established rates for
emergency medical ambulance services.
The City View Cemetery Fund accounts for funds received and expended in conjunction with
the City View Cemetery.
The Boulevard Perpetual Maintenance Fund was created for the purpose of providing
perpetual maintenance of developer-installed landscaping and fencing along designated
boulevards. This is funded through subdivision agreements.
The Athletics Program Fund administers and provides various athletic leagues by and through
the City’s Parks and Recreation Division. The primary source of revenue is league and player
fees.
The Golf Fund accounts for funds received and expended in conjunction with the Sun Willows
Golf Course.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The Senior Center Fund provides for maintenance and operation of the Senior Center.
The Multi Modal Facility Fund accounts for funds received and expended in conjunction with
the Multi Modal Facility. The main source of revenue is lease agreement fees.
The School Impact Fees Fund accounts for impact fees charged for residential development
within the City. The collected fees are provided to the public school district for facility
improvements to better serve new growth.
The Rivershore Trail & Marina Maintenance Fund accounts for funds received and expended
in conjunction with the development and maintenance of the Pasco Boat Basin Marina and the
Rivershore Trail on property. The main source of revenue is marina lease agreements.
The Special Lodging Assessment Fund accounts for funds received and expended in
conjunction with special assessment lodging and related revenues.
The Litter Abatement Fund accounts for funds received and expended in conjunction with the
execution of the Litter Abatement program.
The Revolve Abatement Fund provides for cost and expenses related to the repair, demolition,
and cleanup of dangerous buildings or abatement of nuisances. The main revenue sources are
abatement charges and penalties.
The TRAC/HAPO Development & Operating Funds accounts for funds received and
expended in connection with the operation and maintenance of the TRAC facility, adjacent
recreational and sporting fields.
The Park Development Fund – The Park Development Fund holds park impact fees and
provides for costs related to the construction and maintenance of parks, recreation, and open
space facilities.
The Capital Improvements Fund accounts for proceeds of the ½ of 1% Real Estate Excise Tax.
This tax is collected by County at the time property is sold in the City of Pasco and then remitted
to the City. These funds must be used for construction of capital projects.
The Economic Development Fund accounts for funds received and expended in connection
with economic and industrial development, including land and public infrastructure, as
authorized by City Council to attract and accommodate economic development within the City.
The Stadium/Convention Center Fund provides for the maintenance and operation of the
stadium facility. The revenue source is stadium lease agreements.
The Hotel/Motel Excise Tax Fund accounts for lodging excise taxes received from the
Department of Revenue. Funds are used for activities, operations, and expenditures designed to
support and increase tourism, including promotion, and acquisition and operation of tourism-
related facilities.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
The Animal Control Fund accounts for funds received and disbursed in connection with the
operation of the Tri-City Animal Control facility. The facility is operated in cooperation with the
cities of Kennewick and Richland and equally funded by each city.
Non-Major Debt Service Funds
Debt service funds are used to account for the accumulation of resources for and the payment of
general long-term debt principal and interest.
The Local Improvement District Guaranty Fund accounts for reserve funds for the purpose of
repaying debt and bonds issued against local improvement districts in the City.
The Local Improvement District Loans Fund accounts for funds collected from assessments to
properties within local improvement districts. The funds are used to repay debt issued on behalf
of the local improvement districts. The outstanding debt is in the form of inter-fund loans.
The Local Improvement District Bond Fund accounts for funds collected from assessments to
properties within local improvement districts. The funds are used to repay bonds issued on behalf
of the local improvement districts. The outstanding debt is in the form of external bonds.
Non-Major Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, not principal, may be used for purposes that support the reporting government’s
programs.
The Cemetery Endowment Fund accounts for charges and resources, permanently set aside.
The interest on those resources is available for spending to maintain the cemetery.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Special revenue funds Debt service funds Cemetery perpetual
Total Nonmajor
Governmental Funds
ASSETS
Cash and cash equivalents $ 36,573,120 $ 387,546 $ 131,059 $ 37,091,725
Restricted cash:
Program, grant, donation 13,323,887 - - 13,323,887
Customer deposits 140,599 - - 140,599
Debt service - 30,405 - 30,405
Unspent bond proceeds 1,452,959 - - 1,452,959
Cemetery endowment - - 516,368 516,368
Investments 3,105,719 - - 3,105,719
Receivable (net of allowances)
Taxes 687,270 - - 687,270
Customers 1,679,164 52,168 252 1,731,584
Interfund loans 41,394 - - 41,394
Grants 512,447 - - 512,447
Special assessments & loans 130,562 852,586 - 983,148
Due from other governments 100,000 - - 100,000
Total assets 57,747,121 1,322,705 647,679 59,717,505
LIABILITIES
Accounts payable 1,197,134 3,837 - 1,200,971
Interfund loans payable 448,004 225,249 - 673,253
Pay from restricted assets - Deposits 140,599 - - 140,599
Total liabilities 1,785,737 229,086 - 2,014,823
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenue - special assessments - 852,586 - 852,586
Unavailable revenue - traffic impact fees 240,888 - - 240,888
Unavailable revenue - other 1,318,705 - - 1,318,705
Total deferred inflow of resources 1,559,593 852,586 - 2,412,179
Total liabilities and deferred inflows of resources 3,345,330 1,081,672 - 4,427,002
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery permanent fund - - 647,679 647,679
Restricted
Capital improvements 12,806,531 - - 12,806,531
Culture & Recreation 111,910 - - 111,910
Debt guarantee - 417,551 - 417,551
Economic development 884,031 - - 884,031
Litter & housing abatement 869,402 - - 869,402
Park development 3,061,180 - - 3,061,180
Street and boulevard 10,119,648 - - 10,119,648
Committed
Red Flex 691,345 - - 691,345
Special revenue funds 25,949,784 - - 25,949,784
Assigned
Unassigned (92,040) (176,518) - (268,558)
Total fund balances (deficits) 54,401,791 241,033 647,679 55,290,503
Total liabilities and fund balances (deficits) $ 57,747,121 $ 1,322,705 $ 647,679 $ 59,717,505
The notes to financial statements are an integral part
City of Pasco
Combining Governmental Balance Sheet
Nonmajor Governmental Funds
Summary by Fund Type
December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Special revenue funds Debt service funds Cemetery perpetual
Total Nonmajor
Governmental Funds
REVENUES
Taxes $ 4,933,173 $ - $ - $ 4,933,173
Licenses and permits 466,470 - - 466,470
Intergovernmental 6,063,301 - - 6,063,301
Charges for service 14,180,563 - 45,748 14,226,311
Fines and forfeitures 262,390 - - 262,390
Investment interest 23,840 389 356 24,585
Miscellaneous 1,537,571 568,949 - 2,106,520
Total revenues 27,467,308 569,338 46,104 28,082,750
EXPENDITURES
Current:
Public Safety 9,488,564 - - 9,488,564
Transportation 2,769,536 - - 2,769,536
Natural & Economic environment 5,405,846 - - 5,405,846
Culture & Recreation 2,386,154 - - 2,386,154
Capital outlay:
Natural & Economic environment 132,943 - - 132,943
Debt service:
Principal retirement 236,350 - - 236,350
Interest 179,547 24,469 - 204,016
Total expenditures 20,598,940 24,469 - 20,623,409
Excess (deficiency) of revenues over expenditures 6,868,368 544,869 46,104 7,459,341
OTHER FINANCING SOURCES (USES)
Insurance recoveries 10,081 - - 10,081
Bond Issued 608,915 - - 608,915
Sale of asset 3,781,000 - - 3,781,000
Transfers in 15,095,484 71,686 - 15,167,170
Transfers out (9,945,476) (71,686) - (10,017,162)
Total other financing sources (uses) 9,550,004 - - 9,550,004
Net change in fund balances 16,418,372 544,869 46,104 17,009,345
Fund balances - beginning 37,882,090 (303,836) 601,575 38,179,829
Prior Period Adjustment 101,329 - - 101,329
Fund balances - ending $ 54,401,791 $ 241,033 $ 647,679 $ 55,290,503
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Summary by Fund Type
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City Street Arterial Street I-182 Traffic Impact Street Overlay
Community
Development Block
Grant
ASSETS
Cash and cash equivalents $ 954,597 $ 1,786,342 $ 2,171,820 $ 3,697,740 $ -
Restricted Cash:
Program, grant, donation - - 1,318,705 - -
Customer deposits - - - - -
Unspent bond proceeds - - - - 837,194
Investments - 143,792 255,181 471,883 -
Receivables (net of allowances):
Taxes 156,821 77,794 - - -
Customers 94,497 - - - -
Interfund loans - - - - -
Grants - - - - 511,348
Special assessments & loans - - - - 130,562
Due from other governments - - - - -
Total assets 1,205,915 2,007,928 3,745,706 4,169,623 1,479,104
LIABILITIES
Accounts payable 124,153 - - - 102,266
Interfund loans payable - - - - 363,658
Pay from restricted assets - Deposits - - - - -
Total liabilities 124,153 - - - 465,924
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - traffic impact fees - - 1,318,705 - -
Unavailable revenue - other - - - - 130,562
Total deferred inflows of resources - - 1,318,705 - 130,562
Total liabilities including deferred inflows 124,153 - 1,318,705 - 596,486
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Capital improvements - - - - -
Culture & Recreation - - - - -
Economic development - - - - 882,618
Litter & housing abatement - - - - -
Park development - - - - -
Street and boulevard - 1,316,583 2,427,001 4,169,623 -
Committed
Red Flex - 691,345 - - -
Special revenue funds 1,081,762 - - - -
Assigned
Unassigned - - - - -
Total fund balances (deficits) 1,081,762 2,007,928 2,427,001 4,169,623 882,618
Total liabilities, deferred inflows of resources and fund balances
(deficits) $ 1,205,915 $ 2,007,928 $ 3,745,706 $ 4,169,623 $ 1,479,104
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Balance Sheet
Nonmajor Special revenue funds
December 31, 2021
Continued on next page
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
MLK Community
Center Ambulance City View Cemetery
Boulevard Perpetual
Maintenance Athletics Program Golf
ASSETS
Cash and cash equivalents $ 47,707 $ 6,120,558 $ 423,282 $ 1,932,143 $ 212,106 $ 172,420
Restricted Cash:
Program, grant, donation - - 247 - 4,935 -
Customer deposits - 130,713 - - - 2,350
Unspent bond proceeds - - - - - -
Investments - - - 232,904 - -
Receivables (net of allowances):
Taxes - - - - - -
Customers - 1,103,783 824 - - 39,063
Interfund loans - - - 41,394 - -
Grants - 1,099 - - - -
Special assessments & loans - - - - - -
Due from other governments - - - - - -
Total assets 47,707 7,356,153 424,353 2,206,441 217,041 213,833
LIABILITIES
Accounts payable 4,753 299,920 12,435 - 33,792 99,573
Interfund loans payable - - - - - -
Pay from restricted assets - Deposits - 130,713 - - - 2,350
Total liabilities 4,753 430,633 12,435 - 33,792 101,923
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - traffic impact fees - - - - - -
Unavailable revenue - other 2,636 - 102,261 - - -
Total deferred inflows of resources 2,636 - 102,261 - - -
Total liabilities including deferred inflows 7,389 430,633 114,696 - 33,792 101,923
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Capital improvements - - - - - -
Culture & Recreation - - - - - 111,910
Economic development - - - - - -
Litter & housing abatement - - - - - -
Park development - - - - - -
Street and boulevard - - - 2,206,441 - -
Committed
Red Flex - - - - - -
Special revenue funds 40,318 6,925,520 309,657 - 183,249 -
Assigned
Unassigned - - - - - -
Total fund balances (deficits) 40,318 6,925,520 309,657 2,206,441 183,249 111,910
Total liabilities, deferred inflows of resources and fund balances
(deficits) $ 47,707 $ 7,356,153 $ 424,353 $ 2,206,441 $ 217,041 $ 213,833
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Balance Sheet
Nonmajor Special revenue funds
December 31, 2021
Continued on next page
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Senior Center Multi Modal Facility School Impact Fees
Rivershore Trail &
Marina Maintenance
Special Lodging
Assessment
ASSETS
Cash and cash equivalents $ 132,045 $ 292,347 $ 121,732 $ 34,436 $ 44,213
Restricted Cash:
Program, grant, donation - - - - -
Customer deposits 1,000 6,536 - - -
Unspent bond proceeds - - - - -
Investments - - - - -
Receivables (net of allowances):
Taxes - - - - 54,666
Customers 100 3,072 - 2,245 -
Interfund loans - - - - -
Grants - - - - -
Special assessments & loans - - - - -
Due from other governments - - - - -
Total assets 133,145 301,955 121,732 36,681 98,879
LIABILITIES
Accounts payable 5,427 11,530 58,983 1,227 97,466
Interfund loans payable - - - 84,346 -
Pay from restricted assets - Deposits 1,000 6,536 - - -
Total liabilities 6,427 18,066 58,983 85,573 97,466
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - traffic impact fees - - - - -
Unavailable revenue - other 100 2,771 - 2,245 -
Total deferred inflows of resources 100 2,771 - 2,245 -
Total liabilities including deferred inflows 6,527 20,837 58,983 87,818 97,466
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Capital improvements - - - - -
Culture & Recreation - - - - -
Economic development - - - - 1,413
Litter & housing abatement - - - - -
Park development - - - - -
Street and boulevard - - - - -
Committed
Red Flex - - - - -
Special revenue funds 126,618 281,118 62,749 - -
Assigned
Unassigned - - - (51,137) -
Total fund balances (deficits) 126,618 281,118 62,749 (51,137) 1,413
Total liabilities, deferred inflows of resources and fund balances
(deficits) $ 133,145 $ 301,955 $ 121,732 $ 36,681 $ 98,879
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Balance Sheet
Nonmajor Special revenue funds
December 31, 2021
Continued on next page
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Litter Abatement Revolve Abatement
TRAC/HAPO
Development &
Operating Park Development Capital Improvements
ASSETS
Cash and cash equivalents $ 57,857 $ 535,048 $ 422,661 $ 2,704,736 $ 10,699,301
Restricted Cash:
Program, grant, donation - - - - -
Customer deposits - - - - -
Unspent bond proceeds - - - - -
Investments - - - 356,444 1,181,732
Receivables (net of allowances):
Taxes - - - - 309,732
Customers 313 295,906 - - -
Interfund loans - - - - -
Grants - - - - -
Special assessments & loans - - - - -
Due from other governments - - 100,000 - -
Total assets 58,170 830,954 522,661 3,061,180 12,190,765
LIABILITIES
Accounts payable - 19,409 - - -
Interfund loans payable - - - - -
Pay from restricted assets - Deposits - - - - -
Total liabilities - 19,409 - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - traffic impact fees - - - - -
Unavailable revenue - other 313 - - - -
Total deferred inflows of resources 313 - - - -
Total liabilities including deferred inflows 313 19,409 - - -
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Capital improvements - - - - 12,190,765
Culture & Recreation - - - - -
Economic development - - - - -
Litter & housing abatement 57,857 811,545 - - -
Park development - - - 3,061,180 -
Street and boulevard - - - - -
Committed
Red Flex - - - - -
Special revenue funds - - 522,661 - -
Assigned
Unassigned - - - - -
Total fund balances (deficits) 57,857 811,545 522,661 3,061,180 12,190,765
Total liabilities, deferred inflows of resources and fund balances
(deficits) $ 58,170 $ 830,954 $ 522,661 $ 3,061,180 $ 12,190,765
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Balance Sheet
Nonmajor Special revenue funds
December 31, 2021
Continued on next page
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Economic
Development
Stadium/Convention
Center
Hotel/Motel Excise
Tax Animal Control
Total Nonmajor
Special revenue funds
ASSETS
Cash and cash equivalents $ 2,987,722 $ 721,695 $ 214,291 $ 86,321 $ 36,573,120
Restricted Cash:
Program, grant, donation 12,000,000 - - - 13,323,887
Customer deposits - - - - 140,599
Unspent bond proceeds - 615,765 - - 1,452,959
Investments 463,783 - - - 3,105,719
Receivables (net of allowances):
Taxes - - 88,257 - 687,270
Customers - - - 139,361 1,679,164
Interfund loans - - - - 41,394
Grants - - - - 512,447
Special assessments & loans - - - - 130,562
Due from other governments - - - - 100,000
Total assets 15,451,505 1,337,460 302,548 225,682 57,747,121
LIABILITIES
Accounts payable 59,252 363 - 266,585 1,197,134
Interfund loans payable - - - - 448,004
Pay from restricted assets - Deposits - - - - 140,599
Total liabilities 59,252 363 - 266,585 1,785,737
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - traffic impact fees - - - - 1,318,705
Unavailable revenue - other - - - - 240,888
Total deferred inflows of resources - - - - 1,559,593
Total liabilities including deferred inflows 59,252 363 - 266,585 3,345,330
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Capital improvements - 615,766 - - 12,806,531
Culture & Recreation - - - - 111,910
Economic development - - - - 884,031
Litter & housing abatement - - - - 869,402
Park development - - - - 3,061,180
Street and boulevard - - - - 10,119,648
Committed
Red Flex - - - - 691,345
Special revenue funds 15,392,253 721,331 302,548 - 25,949,784
Assigned
Unassigned - - - (40,903) (92,040)
Total fund balances (deficits) 15,392,253 1,337,097 302,548 (40,903) 54,401,791
Total liabilities, deferred inflows of resources and fund balances
(deficits) $ 15,451,505 $ 1,337,460 $ 302,548 $ 225,682 $ 57,747,121
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Balance Sheet
Nonmajor Special revenue funds
December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City Street Arterial Street
I-182 Traffic
Impact Street Overlay
Community
Development Block
Grant
REVENUES
Taxes $ - $ - $ - $ - $ -
Licenses and permits 466,470 - - - -
Intergovernmental 995,448 496,096 - - 1,409,963
Charges for service 436,976 - 421,806 - -
Fines and forfeitures - - - - -
Investment income - 939 2,432 3,323 -
Miscellaneous 30,183 - - - 21,106
Total revenues 1,929,077 497,035 424,238 3,323 1,431,069
EXPENDITURES
Current:
Public Safety - - - - -
Transportation 2,039,569 60 98 643,255 -
Natural & Economic environment - - - - 427,909
Culture & Recreation - - - - -
Capital outlay:
Natural & Economic environment - - - - -
Debt service:
Principal retirement - - - - 190,000
Interest - - - - 92,338
Total expenditures 2,039,569 60 98 643,255 710,247
Excess (deficiency) of revenues over expenditures (110,492) 496,975 424,140 (639,932) 720,822
OTHER FINANCING SOURCES (USES)
Insurance recoveries - - - - -
Sale of asset - - - - -
Bonds Issued - - - - 3,781,000
Transfers in 342,369 691,345 - 1,005,557 -
Transfers out (23) (249,178) (207,651) (653,931) (3,720,149)
Total other financing sources (uses) 342,346 442,167 (207,651) 351,626 60,851
Net change in fund balances 231,854 939,142 216,489 (288,306) 781,673
Fund balances - beginning 849,908 1,068,786 2,210,512 4,457,929 100,945
Prior Period Adjustment - - - - -
Fund balances - ending $1,081,762 $ 2,007,928 $ 2,427,001 $ 4,169,623 $ 882,618
Continued on next page
City of Pasco
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special revenue funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
MLK Community
Center Ambulance
City View
Cemetery
Boulevard Perpetual
Maintenance
Athletics
Program Golf
REVENUES
Taxes $ - $ - $ - $ - $ - $ -
Licenses and permits - - - - - -
Intergovernmental - 2,332,899 - - - -
Charges for service 6,282 6,963,548 527,877 97,725 132,877 1,436,357
Fines and forfeitures - - - - - -
Investment income 29 - 188 1,566 127 74
Miscellaneous 46,730 196,601 3,548 2,486 2,591 301,996
Total revenues 53,041 9,493,048 531,613 101,777 135,595 1,738,427
EXPENDITURES
Current:
Public Safety - 9,488,564 - - - -
Transportation - - - 1,555 - -
Natural & Economic environment - - 380,684 - - -
Culture & Recreation 152,174 - - - 164,646 1,656,568
Capital outlay:
Natural & Economic environment - - - - - -
Debt service:
Principal retirement - - - - - -
Interest - - - - - -
Total expenditures 152,174 9,488,564 380,684 1,555 164,646 1,656,568
Excess (deficiency) of revenues over expenditures (99,133) 4,484 150,929 100,222 (29,051) 81,859
OTHER FINANCING SOURCES (USES)
Insurance recoveries - 7,345 2,736 - - -
Sale of asset - - - - - -
Bonds Issued - - - - - -
Transfers in 70,000 420,000 - - - -
Transfers out - (45) - (145,000) - (5)
Total other financing sources (uses) 70,000 427,300 2,736 (145,000) - (5)
Net change in fund balances (29,133) 431,784 153,665 (44,778) (29,051) 81,854
Fund balances - beginning 69,451 6,505,073 155,992 2,251,219 212,300 30,056
Prior Period Adjustment - (11,337) - - - -
Fund balances - ending $ 40,318 $6,925,520 $ 309,657 $ 2,206,441 $ 183,249 $ 111,910
Continued on next page
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special revenue funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Senior Center
Multi Modal
Facility
School Impact
Fees
Rivershore Trail &
Marina Maintenance
Special
Lodging
Assessment
REVENUES
Taxes $ - $ - $ - $ - $ -
Licenses and permits - - - - -
Intergovernmental - 103,225 - - -
Charges for service 3,662 - 1,966,450 - 439,430
Fines and forfeitures - - - - -
Investment income 57 130 - 105 -
Miscellaneous 1,808 89,627 - 29,335 186
Total revenues 5,527 192,982 1,966,450 29,440 439,616
EXPENDITURES
Current:
Public Safety - - - - -
Transportation - 81,461 - - -
Natural & Economic environment - - 1,960,483 - 439,616
Culture & Recreation 188,333 - - 23,503 -
Capital outlay:
Natural & Economic environment - - - - -
Debt service:
Principal retirement - - - - -
Interest - - - 8,796 -
Total expenditures 188,333 81,461 1,960,483 32,299 439,616
Excess (deficiency) of revenues over expenditures (182,806) 111,521 5,967 (2,859) -
OTHER FINANCING SOURCES (USES)
Insurance recoveries - - - - -
Sale of asset - - - - -
Bonds Issued - - - - -
Transfers in 234,116 - - - -
Transfers out - (91,514) - - -
Total other financing sources (uses) 234,116 (91,514) - - -
Net change in fund balances 51,310 20,007 5,967 (2,859) -
Fund balances - beginning 75,308 261,111 56,782 (48,278) 1,413
Prior Period Adjustment - - - - -
Fund balances - ending $ 126,618 $ 281,118 $ 62,749 $ (51,137) $ 1,413
Continued on next page
City of Pasco
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special revenue funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Litter
Abatement
Revolve
Abatement
TRAC/HAPO
Development &
Operating
Park
Development
Capital
Improvements
REVENUES
Taxes $ - $ - $ - $ - $ 4,236,720
Licenses and permits - - - - -
Intergovernmental - - - - -
Charges for service 12,500 105,651 - 579,449 -
Fines and forfeitures - 262,390 - - -
Investment income 30 280 280 2,481 8,125
Miscellaneous - 14,195 - - -
Total revenues 12,530 382,516 280 581,930 4,244,845
EXPENDITURES
Current:
Public Safety - - - - -
Transportation 3,538 - - - -
Natural & Economic environment - 163,617 - - 304
Culture & Recreation - - 200,732 198 -
Capital outlay:
Natural & Economic environment - - - - -
Debt service:
Principal retirement - - - - -
Interest - - - - -
Total expenditures 3,538 163,617 200,732 198 304
Excess (deficiency) of revenues over expenditures 8,992 218,899 (200,452) 581,732 4,244,541
OTHER FINANCING SOURCES (USES)
Insurance recoveries - - - - -
Sale of asset - - - - -
Bonds Issued - - - - -
Transfers in 5,000 - 198,347 - -
Transfers out - - - (946,735) (1,644,130)
Total other financing sources (uses) 5,000 - 198,347 (946,735) (1,644,130)
Net change in fund balances 13,992 218,899 (2,105) (365,003) 2,600,411
Fund balances - beginning 43,865 592,646 524,766 3,426,183 9,590,354
Prior Period Adjustment - - - - -
Fund balances - ending $ 57,857 $ 811,545 $ 522,661 $ 3,061,180 $ 12,190,765
Continued on next page
City of Pasco
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special revenue funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City of Pasco
Combining Statement of Revenues, Expenditures, and
Nonmajor Special revenue funds
For the Year Ended December 31, 2021
Economic
Development
Stadium/Convention
Center
Hotel/Motel Excise
Tax
Animal
Control
Total Nonmajor
Special revenue
funds
REVENUES
Taxes $ - $ - $ 696,453 $ - $ 4,933,173
Licenses and permits - - - - 466,470
Intergovernmental 561,784 - - - 5,899,415
Charges for service - - - 1,049,973 14,180,563
Fines and forfeitures - - - - 262,390
Investment income 3,225 428 21 - 23,840
Miscellaneous 901,374 29,691 - 30,000 1,701,457
Total revenues 1,466,383 30,119 696,474 1,079,973 27,467,308
EXPENDITURES
Current:
Public Safety - - - - 9,488,564
Transportation - - - - 2,769,536
Natural & Economic environment 738,735 19,358 202,244 1,072,896 5,405,846
Culture & Recreation - - - - 2,386,154
Capital outlay:
Natural & Economic environment 132,943 - - - 132,943
Debt service:
Principal retirement - 46,350 - - 236,350
Interest - 78,413 - - 179,547
Total expenditures 871,678 144,121 202,244 1,072,896 20,598,940
Excess (deficiency) of revenues over expenditures 594,705 (114,002) 494,230 7,077 6,868,368
OTHER FINANCING SOURCES (USES)
Insurance recoveries - - - - 10,081
Sale of asset 608,915 - - - 608,915
Bonds Issued - - - - 3,781,000
Transfers in 12,000,000 128,750 - - 15,095,484
Transfers out (1,758,437) (201,581) (327,097) - (9,945,476)
Total other financing sources (uses) 10,850,478 (72,831) (327,097) - 9,550,004
Net change in fund balances 11,445,183 (186,833) 167,133 7,077 16,418,372
Fund balances - beginning 3,834,404 1,523,930 135,415 (47,980) 37,882,090
Prior Period Adjustment 112,666 - - - 101,329
Fund balances - ending $15,392,253 $ 1,337,097 $ 302,548 $ (40,903) $ 54,401,791
The notes to financial statements are an integral part of this statement.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Local Improv.
District Guaranty
Local Improvement
District Loans LID Bonds
Total Nonmajor
Debt service funds
ASSETS
Cash and cash equivalents $ 387,546 $ - $ - $ 387,546
Restricted Cash:
Debt covenants 30,005 400 - 30,405
Receivables (net of allowances):
Customers - 52,168 - 52,168
Special assessments & loans - 852,586 - 852,586
Total assets 417,551 905,154 - 1,322,705
LIABILITIES
Accounts payable - 3,837 - 3,837
Interfund loans payable - 225,249 - 225,249
Total liabilities - 229,086 - 229,086
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - 852,586 - 852,586
Total deferred inflows of resources - 852,586 - 852,586
Total liabilities including deferred inflows - 1,081,672 - 1,081,672
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Debt Guarantee 417,551 - - 417,551
Unassigned - (176,518) - (176,518)
Total fund balances (deficits) 417,551 (176,518) - 241,033
Total liabilities, deferred inflows of resources and fund
balances (deficits) $ 417,551 $ 905,154 $ - $ 1,322,705
City of Pasco
The notes to financial statements are an integral part of this statement.
Combining Balance Sheet
Nonmajor Debt service funds
December 31, 2021
Local Improv.
District Guaranty
Local Improvement
District Loans LID Bonds
Total Nonmajor Debt
service funds
REVENUES
Taxes $ - $ - $ - $ -
Investment income 206 161 22 389
Miscellaneous - 568,949 - 568,949
Total revenues 206 569,110 22 569,338
EXPENDITURES
Current:
Capital outlay:
Debt service:
Interest - 24,469 - 24,469
Total expenditures - 24,469 - 24,469
Excess (deficiency) of revenues over expenditures 206 544,641 22 544,869
OTHER FINANCING SOURCES (USES)
Transfers in 71,686 - - 71,686
Transfers out - (19,984) (51,702) (71,686)
Total other financing sources (uses) 71,686 (19,984) (51,702) -
Net change in fund balances 71,892 524,657 (51,680) 544,869
Fund balances - beginning 345,658 (701,174) 51,680 (303,836)
Prior Period Adjustment - - - -
Fund balances - ending $ 417,550 $ (176,517) $ - $ 241,033
City of Pasco
The notes to financial statements are an integral part of this statement.
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Debt service funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Cemetery Perpetual
Total Nonmajor
Permanent funds
ASSETS
Cash and cash equivalents $ 131,059 $ 131,059
Restricted Cash:
Restricted Cemetery Endowment 516,368 516,368
Receivables:
Customers (net of allowances): 252 252
Total assets 647,679 647,679
LIABILITIES
Total liabilities - -
DEFERRED INFLOWS OF RESOURCES
Total deferred inflows of resources - -
Total liabilities including deferred inflows - -
FUND BALANCES (DEFICITS)
Nonspendable:
Cemetery Endowment 647,679 647,679
Restricted:
Committed:
Assigned:
Total fund balances (deficits) 647,679 647,679
Total liabilities, deferred inflows of resources and fund balances
(deficits) $ 647,679 $ 647,679
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Balance Sheet
Nonmajor Permanent funds
December 31, 2021
Cemetery Perpetual
Total Nonmajor
Permanent funds
REVENUES
Charges for service $ 45,748 $ 45,748
Investment income 356 356
Total revenues 46,104 46,104
EXPENDITURES
Current:
Capital outlay:
Debt service:
Total expenditures - -
Excess (deficiency) of revenues over expenditures 46,104 46,104
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) - -
Net change in fund balances 46,104 46,104
Fund balances - beginning 601,575 601,575
Prior Period Adjustment - -
Fund balances - ending $ 647,679 $ 647,679
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Permanent funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Nonmajor Proprietary funds
Internal Service Funds
Internal Service funds are used to account for he financing of goods or services provided by one
department to other deparemnts of the government and to other government units on a cost
reimbursement basis.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Equipment
O&M Govt
Equipment
Replacement
Govt Med/Dental
Central
Stores
Equipment
O&M Utility
Equipment
Replacement
Utility
Total Nonmajor
Internal Service
Funds
ASSETS
Current assets:
Cash and cash equivalents $ 284,234 $ 8,101,792 $2,014,878 $ 13,457 $ 10,574 $ 5,359,290 $ 15,784,225
Restricted - Self-insured reserve - - 2,138,020 - - - 2,138,020
Investments - 957,942 268,345 - - 579,221 1,805,508
Receivables - Customers 12 - - - - - 12
Total current assets 284,246 9,059,734 4,421,243 13,457 10,574 5,938,511 19,727,765
Noncurrent assets:
Net pension asset 201,196 - - - - - 201,196
Machinery and equipment - 5,135,041 - - - 1,574,026 6,709,067
Total noncurrent assets 201,196 5,135,041 - - - 1,574,026 6,910,263
Total assets 485,442 14,194,775 4,421,243 13,457 10,574 7,512,537 26,638,028
DEFERRED OUTFLOWS OF
RESOURCES
Pension related 27,121 - - - - - 27,121
Total deferred outflows of resources 27,121 - - - - - 27,121
Total assets and deferred outflows of resources 512,563 14,194,775 4,421,243 13,457 10,574 7,512,537 26,665,149
LIABILITIES
Current liabilities:
Accounts payable 110,007 211,408 103,602 - 10,574 - 435,591
Pension Liability 17,529 - - - - - 17,529
Total current liabilities 127,536 211,408 103,602 - 10,574 - 453,120
Noncurrent liabilities:
Pension Liability 1,668 - - - - - 1,668
Total noncurrent liabilities 1,668 - - - - - 1,668
Total liabilities 129,204 211,408 103,602 - 10,574 - 454,788
DEFERRED INFLOWS OF
RESOURCES
Pension Related 208,976 - - - - - 208,976
Total deferred inflows of resources 208,976 - - - - - 208,976
Total liabilities and deferred inflows of resources 338,180 211,408 103,602 - 10,574 - 663,764
NET POSITION
Net investment in capital assets - 5,135,041 - - - 1,574,026 6,709,067
Restricted for:
State Law WAC - - 2,138,020 - - - 2,138,020
Pension 201,196 201,196
Unrestricted (26,813) 8,848,326 2,179,621 13,457 - 5,938,511 16,953,102
Total net position $ 174,383 $13,983,367 $4,317,641 $ 13,457 $ - $ 7,512,537 $ 26,001,385
The notes to financial statements are an integral part of this statement.
Business-Type ActivitiesGovernmental Activities
City of Pasco
Combining Statement of Net Position
Nonmajor Internal Service Funds
December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Equipment
O&M Govt
Equipment
Replacement
Govt Med/Dental
Central
Stores
Equipment
O&M
Utility
Equipment
Replacement
Utility
Total Internal
Service Funds
OPERATING REVENUES
Charges for service $1,617,825 $ 2,026,640 $6,714,581 $ - $125,080 $1,080,639 $ 11,564,765
Total operating revenues 1,617,825 2,026,640 6,714,581 - 125,080 1,080,639 11,564,765
OPERATING EXPENSES
Depreciation - 825,004 - - - 327,209 1,152,213
Salaries & wages 372,282 - 65,926 - - - 438,208
Personnel benefits 20,720 - 21,546 - - - 42,266
Supplies 769,157 546,620 - - 125,080 - 1,440,857
Services 365,414 125,000 6,818,776 - - - 7,309,190
Total operating expenses 1,527,573 1,496,624 6,906,248 - 125,080 327,209 10,382,734
Operating income (loss) 90,252 530,016 (191,667) - - 753,430 1,182,031
NONOPERATING REVENUES
(EXPENSES)
Investment income 128 6,510 2,974 8 - 3,891 13,511
Miscellaneous 13,291 4,785 172,330 - - - 190,406
Insurance recoveries - - 8,802 - - - 8,802
Sale of asset - 11,970 - - - - 11,970
Total nonoperating revenues 13,419 23,265 184,106 8 - 3,891 224,689
Income (loss) before contributions and transfers 103,671 553,281 (7,561) 8 - 757,321 1,406,720
Transfers out - (451,762) - - - - (451,762)
Capital contributions - 33,056 - - - - 33,056
Change in net position 103,671 134,575 (7,561) 8 - 757,321 988,014
Total net position - beginning 70,712 14,544,929 4,325,202 13,449 - 6,982,993 25,937,285
Prior Period Adjustment - (696,137) - - - (227,777) (923,914)
Total net position - ending $ 174,383 $13,983,367 $4,317,641 $ 13,457 $ - $7,512,537 $ 26,001,385
The notes to financial statements are an integral part of this statement.
Business-Type ActivitiesGovernmental Activities
City of Pasco
Combining Statement of Revenues, Expenditures, and Changes in Net Position
Internal Service Funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Equipment
O&M Govt
Equipment
Replacement
Govt Med/Dental
Central
Stores
Equipment
O&M Utility
Equipment
Replacement
Utility Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers $ 1,617,825 $ 2,026,639 $6,714,582 $ - $ 125,079 $ 1,080,639 $11,564,764
Payments to employees (527,758) - (87,137) - - - (614,895)
Payments to suppliers (1,093,913) (589,080) (6,857,128) - (121,918) - (8,662,039)
Net cash provided (used) by operating activities (3,846) 1,437,559 (229,683) - 3,161 1,080,639 2,287,830
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Miscellaneous 13,289 4,785 172,330 - - - 190,404
Insurance recoveries - - 8,802 - - - 8,802
Net cash provided (used) by noncapital financing activities 13,289 4,785 181,132 - - - 199,206
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of assets - 11,970 - - - - 11,970
Transfers in (out) - (451,762) - - - - (451,762)
Acquisition and construction of capital assets - (1,265,521) - - - (11,970) (1,277,491)
Net cash provided (used) by capital and related financing
activities - (1,705,313) - - - (11,970) (1,717,283)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment purchases - 877,974 161,407 - - 352,733 1,392,114
Interest on investments 128 6,510 2,975 8 - 3,891 13,512
Net cash provided (used) by investing activities 128 884,484 164,382 8 - 356,624 1,405,626
Net increase (decrease) in cash and cash equivalents 9,571 621,515 115,831 8 3,161 1,425,293 2,175,379
Balances - beginning of year 274,659 7,480,277 4,037,067 13,449 7,413 3,933,997 15,746,862
Balances - end of the year 284,230 8,101,792 4,152,898 13,457 10,574 5,359,290 17,922,241
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Net Operating Income 90,251 530,015 (191,667) - - 753,430 1,182,029
Adjustments to reconcile operating income (loss) to net cash
provided (used) by operating activities:
Depreciation - 825,004 - - - 327,209 1,152,213
(Increase)/decrease in customer receivables - - - - - - -
Increase (decrease) in accounts payable 40,659 82,540 (38,351) - 3,161 - 88,009
Increase (decrease) in salaries & benefits payable (771) - 335 - - - (436)
(Increase) decrease in pension deferred outflow 12,354 - - - - - 12,354
Increase (decrease) in pension liability (115,265) - - - - - (115,265)
Increase (decrease) in pension asset (201,196) - - - - - (201,196)
Increase (decrease) in pension deferred inflow 170,122 - - - - - 170,122
Net cash provided (used) by operating activities $ (3,846) $ 1,437,559 $ (229,683) $ - $ 3,161 $ 1,080,639 $ 2,287,830
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Cash Flows
Internal service funds
For the Year Ended December 31, 2021
Governmental Activities Business-Type Activities
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Pension and other post-employment benefit trust funds are used to report resources that are required to be
held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution
plans, other postemployment benefit plans or other employee benefit plans.
Custodial funds are used to report resources held by the reporting government in a purely custodial capacity.
Custodial funds typically involve only the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, or other governments.
Trust and Custodial Funds
Pension and Other Postemployment Benefit Trust Funds
Custodial Funds
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Firemen's Pension
Firemen's Other Post-
Employment Benefits
Total Pension
trust funds
ASSETS
Cash and cash equivalents $ 548,867 $ 49,481 $ 598,348
Receivables:
Special assessments & loans 3,837 - 3,837
Investments:
Federal agency 6,700 - 6,700
Mutual funds 3,540,655 4,500,705 8,041,360
Total assets 4,100,059 4,550,186 8,650,245
LIABILITIES
Total liabilities - - -
NET POSITION
Held in trust for pension benefits and other purposes 4,100,059 4,550,186 8,650,245
Total net position $ 4,100,059 $ 4,550,186 $8,650,245
City of Pasco
The notes to financial statements are an integral part of this statement.
Combining Statement of Fiduciary Net Position
Pension (and Other Employee Benefit) Trust Funds
December 31, 2021
Firemen's Pension
Firemen's Other Post-
Employment Benefits
Total Pension trust
funds
ADDITIONS
Tax collections by other government $ 98,371 $ - $ 98,371
Investment income 673,667 945,729 1,619,396
Interest 785 22 807
Dividends 40,182 61,186 101,368
Total additions 813,005 1,006,937 1,819,942
DEDUCTIONS
Pension benefits 76,598 - 76,598
Medical premiums - 87,540 87,540
Services 3,465 1,353 4,818
Total deductions 80,063 88,893 168,956
Net increase (decrease) in fiduciary net position 732,942 918,044 1,650,986
Net Position -- beginning of the year 3,367,117 3,632,142 6,999,259
Net Position -- end of the year $ 4,100,059 $ 4,550,186 $ 8,650,245
The notes to financial statements are an integral part of this statement.
City of Pasco
Combining Statement of Changes in Fiduciary Net Position
Pension (and Other Employee Benefit) Trust Funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Admin. Office of
the Courts
Pasco Public
Facility District
Animal Control
Authority
Total Custodial
funds
ASSETS
Cash and cash equivalents $ - $ 88,851 $ 17,096 $ 105,947
Receivables:
Receivables - Customers 32,537 - 35,754 68,291
Receivables - Taxes - 164,172 - 164,172
Total assets 32,537 253,023 52,850 338,410
LIABILITIES
Accounts payable 32,537 235,908 20,321 288,766
Total liabilities 32,537 235,908 20,321 288,766
NET POSITION
Restricted for:
Individuals, organizations and other governments - 17,115 32,529 49,644
Total net position $ - $ 17,115 $ 32,529 $ 49,644
City of Pasco
The notes to financial statements are an integral part of this statement.
Combining Statement of Fiduciary Net Position
Custodial Funds
December 31, 2021
Admin. Office of
the Courts
Pasco Public
Facility District
Animal Control
Authority
Total Custodial
funds
ADDITIONS
Taxes $ - $ 788,711 $ - $ 788,711
Fees collected on behalf other agency 441,687 - - 441,687
Intergovernmental grants and other payments - 80,000 202,078 282,078
Total additions 441,687 868,711 202,078 1,512,476
DEDUCTIONS
Services - 33,204 - 33,204
Payments of sales tax to other governments - 788,711 - 788,711
Fees remitted to agency 441,687 - - 441,687
Capital - - 200,872 200,872
Total deductions 441,687 821,915 200,872 1,464,474
Net increase (decrease) in fiduciary net position - 46,796 1,206 48,002
Net Position -- beginning of the year - (29,681) 31,323 1,642
Net Position -- end of the year $ - $ 17,115 $ 32,529 $ 49,644
City of Pasco
The notes to financial statements are an integral part of this statement.
Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Sacajawea Trail
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
STATISTICAL SECTION
This part of the City of Pasco’s comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the government’s overall financial health.
CONTENTS Page
Financial Trends 136
These schedules contain trend information to help the reader understand how the government’s
financial performance and well-being have changed over time.
Revenue Capacity 142
These schedules contain information to help the reader assess the government’s most significant
revenue sources.
Debt Capacity 147
These schedules present information to help the reader assess the affordability of the
government’s current levels of outstanding debt and the government’s ability to issue additional
debt in the future.
Demographic and Economic Information 151
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government’s financial activities take place.
Operating Information 154
These schedules contain service data to help the reader understand how the information in the
government’s financial report relates to services the government provides and the activities it
performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets 163,582$ 188,996$ 185,424$ 198,278$ 212,712$ 217,060$ 236,868$ 247,554$ 262,403$ 266,042$
Restricted for:
Restricted *
Cemetery (nonexpendable)418 434 455 468 486 505 531 - 601 647
Prepaids 141
Program, grant, donations 86 35 44 19 73 384 410
Contested tax & drug forfeits 228 57
Bicentennial celebration 6
Streets and boulevards 6,489 7,205 7,150 6,204 6,986 7,996 8,635 8,980 9,949 10,117
Litter and housing abatement 289 329 369 354 562 416 416 474 637 869
Park development 1,739 1,821 1,994 2,135 2,152 1,723 2,219 2,998 3,426 3,061
Permit & plan check fee***630 811 2,488
Culture and recreation 133 (4) 99 108 30 112
Capital improvement 2,259 2,976 3,733 4,802 5,927 6,980 8,853 9,123 20,366 16,689
Economic development 221 3 49 108 114 64 96 72 102 884
Pensions***14,520 12,986 41,704
State Law WAC***2,130 1,991 2,138
Other Postemployment Benefits***2,271 2,495 3,900
Debt repayment guarantee 337 334 349 635 371 362 20,036 195 418
Special assessment debt 240 48 64 6,240
Committed for:
Landfill*407 407 407 407 407
Special revenue funds*4,408 3,395 7,534 13,389 25,950
Red flex***76 87 691
Construction projects*557 101 446
Assigned
Future project-community center***1,230 1,230 1,230
Unrestricted 14,616 11,883 15,934 10,433 16,576 6,301 14,307 (9,122) 6,735 (12,200)
Total governmental activities net position 190,196 214,390 215,719 229,108 246,185 246,828 276,308 309,540 338,224 365,557
Business-type activities .--
Net investment capital assets 130,321 129,664 137,088 139,166 141,470 141,373 147,338 160,514 167,636 173,209
Restricted 10,841 10,380 24,912 25,483
Unrestricted 14,719 19,115 4,274 15,736 19,860 26,339 32,149 21,926 14,357 33,316
Total business-type activities net position 145,040 148,779 152,203 154,902 161,330 167,712 179,487 192,820 206,905 232,008
Primary government
Net investment in capital assets 293,903 318,660 322,512 337,444 354,182 358,433 384,206 408,068 430,039 439,251
Restricted 11,998 13,511 25,202 20,397 16,897 18,095 21,230 71,795 78,885 108,920
Committed*- - - - - 5,372 3,903 8,463 13,883 27,048
Assigned ***1,230 1,230 1,230
Unrestricted 29,335 30,998 20,208 26,169 36,436 32,640 46,456 12,804 21,092 21,116
Total primary government net assets 335,236$ 363,169$ 367,922$ 384,010$ 407,515$ 414,540$ 455,795$ 502,360$ 545,129$ 597,565$
* Break out not available prior to 2012
** Break out not reported prior to 2017
*** Started restricting in 2019
Fiscal Year Ended December 31
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental activities:
General government 6,730$ 7,060$ 8,092$ 8,238$ 8,716$ 7,594$ 6,950$ 9,040$ 12,457$ 33,492$
Public safety 20,498 22,491 21,624 24,917 29,374 30,661 32,470 31,003 40,014 6,011
Transportation 9,913 14,097 16,728 16,374 16,628 17,893 18,047 11,770 20,092 21,149
Economic environment 5,799 4,456 4,710 5,137 5,618 6,894 6,873 7,807 8,523 11,753
Culture and recreation 8,224 8,003 7,941 8,115 8,929 9,168 9,490 5,954 7,951 8,688
Interest on long term debt 315 265 210 444 504 438 421 526 1,110 1,260
Total governmental activities expenses 51,479 56,372 59,305 63,225 69,769 72,648 74,251 66,100 90,147 82,353
Business-type activities
Water 6,748 7,780 8,238 9,099 9,476 10,172 10,285 14,340 11,278 9,096
Irrigation 1,099 1,226 1,546 1,779 1,646 1,993 1,914 1,811 1,953 2,023
Sewer 7,435 7,223 7,902 8,175 8,571 8,986 9,309 (137) 8,946 8,994
Water process reuse 1,185 1,542 1,848 2,524 3,173 2,590 2,508 3,222 5,053 4,505
Storm water 1,028 1,165 1,288 1,168 1,531 1,303 1,395 1,359 1,356 1,810
Total business-type activities expenses 17,495 18,936 20,822 22,745 24,397 25,044 25,411 20,595 28,586 26,428
Total primary government expenses 68,974 75,308 80,127 85,970 94,166 97,692 99,662 86,695 118,733 108,781
Program revenues
Governmental Activities:
Charges for Services
General government 2,575 4,578 5,083 5,283 4,741 4,759 6,108 8,449 4,467 4,689
Public safety 4,415 4,398 5,144 5,177 6,310 8,525 8,808 11,263 12,714 11,589
Transportation 310 3,507 4,203 3,672 3,771 2,609 2,319 3,859 3,528 3,244
National & economic environment 4,154 3,361 3,172 3,570 6,022 6,096 6,075 10,306 6,818 8,945
Culture and recreation 1,838 2,471 2,334 2,502 2,556 2,905 3,864 3,187 2,283 2,312
Operating grants and contributions 1,043 639 1,702 1,770 1,321 1,041 1,614 1,471 11,221 8,259
Capital grants and contributions 16,144 30,631 4,302 23,929 25,053 14,189 31,756 7,977 29,526 15,694
Total governmental activities program revenues 30,479 49,585 25,940 45,903 49,774 40,124 60,544 46,512 70,557 54,732
Business-type activities
Charges for services 18,044 17,977 20,002 20,979 23,603 25,816 28,172 29,672 32,858 33,455
Operating grants and contributions 412 42 23 27 11 69 1,048 8 282 58
Capital grants and contributions 5,586 4,214 3,344 6,090 7,189 5,267 7,395 4,108 6,810 12,836
Total business-type activities program revenues 24,042 22,233 23,369 27,096 30,803 31,152 36,615 33,788 39,950 46,349
Total primary government program revenues 54,521$ 71,818$ 49,309$ 72,999$ 80,577$ 71,276$ 97,159$ 80,300$ 110,507$ 101,081$
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Ended December 31
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net (expenses)/revenues
Governmental activities ($21,000) ($6,787) ($33,365) ($17,322) ($19,995) ($41,048) ($13,707) ($19,588) (19,590)$ (27,621)$
Business-type activities 6,547 3,297 2,547 4,351 6,406 6,108 11,204 13,193 11,364 19,921
Total primary government (14,453) (3,490) (30,818) (12,971) (13,589) (34,940) (2,503) (6,395) (8,226) (7,700)
General revenues and other changes in net assets
Governmental Activities:
Taxes
Property taxes 6,658 7,149 7,069 7,255 7,928 7,963 8,353 10,698 11,066 11,496
Sales and use taxes 10,284 11,472 12,695 13,646 14,887 15,818 16,696 17,751 18,850 23,774
Occupational utility taxes 8,843 8,894 9,592 10,268 9,028 10,512 10,104 11,628 11,117 11,454
Other taxes 2,046 2,117 2,290 2,443 2,884 3,487 3,636 4,830 2,693 5,703
Intergovernmental 3,161 1,566 1,581 1,741 1,962 3,609 3,589 3,649 4,077 4,804
Investment and miscellaneous 1,486 137 62 252 300 485 871 921 3,898 3,093
Transfers 3,439 (355) (150) - - (65) (78) 540 (1,233) (1,758)
Gain on sale of asset*1,290 508 270
Total governmental activities 35,917 30,980 33,139 35,605 36,989 41,809 43,171 51,307 50,976 58,836
Business-type activities
Investment and miscellaneous 33 88 29 103 145 209 571 643 312 136
Transfers (3,439)355 150 - - 65 - (540) 1,233 1,758
Gain on sale of asset*85 (12) -
Total business-type activities (3,406)443 179 103 145 274 571 188 1,533 1,894
Total primary government 32,511 31,423 33,318 35,708 37,134 42,083 43,742 51,495 52,509 60,730
Changes in net position
Governmental activities 14,917 24,193 (226) 18,283 16,994 761 29,464 31,719 31,386 31,215
Business-type activities 3,141 3,740 2,726 4,454 6,551 6,382 11,775 13,381 12,897 21,815
Total primary government $18,058 $27,933 $2,500 $22,737 $23,545 $7,143 $41,239 $45,100 $44,283 $53,030
*Reporting separate gain on sale of asset in 2019
Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Ended December 31
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Fiscal Year
Ended
December 31
Property
Taxes
Sales
and Use
Taxes B&O Taxes
Excise and
Other
Taxes Total Taxes
2012 6,659$ 10,284$ 8,843$ 2,046$ 27,832$
2013 7,149 11,472 8,894 2,117 29,632
2014 7,069 12,695 9,592 2,290 31,646
2015 7,255 13,646 10,268 2,443 33,612
2016 7,928 14,887 9,028 2,884 34,727
2017 7,963 15,818 10,512 3,487 37,780
2018 8,353 16,696 10,104 3,636 38,789
2019 10,698 17,751 11,628 4,830 44,907
2020 11,066 18,850 11,117 2,693 43,726
2021 11,496$ 23,774$ 11,454$ 5,703$ 52,427$
Source:
Statement of activities
Prior CAFR
* Also included intergovernmental revenues
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General fund
Assigned -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Restricted
Capital improvements 9,959 3,809
Debt Repayment/guarantee 4,876 18,572
Law Enforcement 228 57
Permit & plan check fees 3 630 811 2,488
Prepaids 136
Program, grant, donation 6 86 35 44 19 73 384 411
Committed
Landfill claims 401 405 406 407 407 407 407 407 407 407
Red Flex 3 76 87
Assigned
Subsequent year's budget appropriation 2,872 806 1,858
Future project- Community Center 4 1,230 1,230 1,230
Unassigned 6,264 5,612 7,978 11,920 12,333 13,118 15,365 20,263 25,874 21,718
Total general fund 9,543$ 6,245$ 9,383$ 17,289$ 14,633$ 13,569$ 15,791$ 41,251$ 38,752$ 30,063$
All other governmental funds
Nonspendable
Cemetery permanent fund 1 418$ 434$ 455$ 467$ 486$ 505$ 531$ -$ 602$ 648$
Restricted 5
Capital improvements 2 2,260 2,976 3,733 4,802 5,927 6,980 8,853 9,123 10,408 12,807
Culture and recreation 132 (4) 98 108 30 112
Debt repayment/guarantee 1,364 635 371 362 1,463 195 418
Economic development 2 221 3 49 108 115 63 96 72 102 884
General obligation debt 2 337 334 349
Litter & housing abatement 2 288 329 369 354 562 416 416 474 636 869
Park development 2 1,739 1,822 1,995 2,135 2,152 1,723 2,219 2,998 3,426 3,061
Special assessment debt 2 240 47 64
Street and boulevard 2 6,489 7,205 7,150 6,204 6,986 7,997 8,635 8,980 9,950 10,120
Committed
Special revenue funds 1,117 2,365 2,031 3,017 3,770 4,408 3,395 7,535 13,389 25,950
Red Flex 3 691
Construction projects 861 199 33 238 226 101 446
Debt guarantee 1,033 924 926 -
Unassigned (1,254) (1,188) (442) (400) (279) (130) (66) (1,521) (558) (269)
Total all other governmental funds 13,749$ 15,582$ 16,717$ 18,289$ 20,580$ 22,329$ 24,640$ 29,678$ 38,180$ 55,291$
1 Started reporting in Fiduciary funds in 2019
2 Break out not available prior to 2012
3 Started Red Flex, permit and plan fees in 2019 & moved to Special Revenue fund in 2021
4 Started project Community Center
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Ended December 31
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenue
Taxes 28,017$ 29,602$ 31,756$ 33,587$ 34,727$ 37,781$ 38,789$ 44,909$ 43,726$ 52,397$
Licenses and permits 1,862 1,777 1,983 3,389 2,516 2,576 2,947 3,340 2,889 4,117
Intergovernmental revenue 4,901 5,785 6,868 5,857 5,280 7,951 13,867 8,921 13,821 22,327
Charges for services 9,509 11,486 12,562 11,598 15,538 18,438 18,174 22,492 21,708 23,024
Fines and forfeitures 891 985 961 1,209 984 960 1,072 1,198 1,250 1,329
Investment**256 44
Miscellaneous**3,316 3,785
Investment and miscellaneous**2,767 2,559 3,146 2,264 2,956 2,792 3,769 6,324
Total revenues 47,947 52,194 57,276 57,904 62,001 70,498 78,618 87,184 86,966 107,023
Expenditures
Current:
General government 6,381 6,705 7,720 7,940 8,567 8,839 10,041 11,388 10,810 12,280
Public safety 19,990 22,365 22,110 25,269 27,205 32,253 33,254 34,111 36,843 40,249
Transportation 2,890 3,897 6,344 5,273 4,147 4,449 4,057 5,202 5,099 5,222
Natural and economic environment 5,359 4,287 4,568 4,989 5,446 6,786 6,674 8,678 8,373 11,655
Culture and recreation 6,807 6,978 7,153 7,357 8,131 8,763 8,833 7,449 7,043 7,561
Capital outlay
General government 193 1,426 506 166 206 268 424 1,276 518 113
Public safety 648 2,726 258 3,274 5,606 1,053 789 1,978 8,893 6,076
Transportation 3,141 2,994 2,852 2,203 995 4,152 8,084 7,522 802 9,362
Natural and economic environment 1,534 254 1,351 518 (23) 26 32 306 133
Culture and recreation 185 225 471 845 1,352 1,302 1,379 1,004 6,841
Debt service:
Principal 3,308 1,194 675 581 1,291 807 815 830 1,330 1,065
Interest 316 265 210 445 504 438 421 526 1,279 1,269
Total expenditures 50,752 53,091 53,972 57,968 63,461 69,137 74,720 80,371 82,300 101,826
Excess of revenues
over (under) expenditures (2,805) (897) 3,304 (64) (1,460) 1,361 3,898 6,813 4,666 5,197
Other financing sources (uses)
Insurance recoveries 111 325 40
Proceeds from sale of asset 227 700 1,010 67 140 1,357 977 609
Proceeds of general debt 8,795 18,090
Debt proceeds - Premiums 308 4,094 3,781
Transfer in 6,434 7,029 3,800 7,352 10,228 6,466 3,399 15,981 15,985 30,549
Transfer out (6,689) (7,596) (4,343) (7,613) (10,228) (6,531) (3,477) (15,448) (16,508) (31,855)
Total other financing sources (uses)(255) (567) (316) 9,542 1,010 2 62 24,185 779 3,124
Net change in fund balances (3,060)$ (1,464)$ 2,988$ 9,478$ (450)$ 1,363$ 3,960$ 30,998$ 5,445$ 8,321$
Debt services as percentage
of noncapital expenditures 7.8%3.0%1.8%1.9%3.0%1.9%1.8%1.8%3.3%2.4%
Capital outlay
General government 193 1,426 506 166 206 268 424 1,276 518 113
Public safety 648 2,726 258 3,274 5,606 1,053 789 1,978 8,893 6,076
Transportation 3,141 2,994 2,852 2,203 995 4,152 8,084 7,522 802 9,362
Natural and economic environment 1,534 254 1,351 - 518 (23) 26 32 306 133
Culture and recreation 185 - 225 471 845 1,352 1,302 1,379 1,004 6,841
Donated assets*24,450 6,917 29,252 31,604
Depreciation expense*(15,918) (5,186) (16,876) (18,848)
Joint venture*1,089 204 93 61
Prior period adjustment capital outlay (1,473) (11)
Governmental funds capital outlays
as expenditures.5,701$ 7,400$ 5,192$ 6,114$ 8,170$ 6,802$ 20,246$ 14,122$ 22,519$ 35,331$
* totals not reported prior to 2018
** totals split out in 2020
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Ended December 31
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Fiscal Year Ended
December 31
Residential
Property
Commercial
Property
Other
Property
Total Taxable
Assessed
Valuation
Total Taxable
Assessed Valuation
as a Percentage of
Estimated Actual
Value *
Estimated
Actual
Value of
Taxable
Property*
Total Direct
Tax Rate
2012 2,323,387$ 716,283$ 180,219$ 3,219,889$ 3,406,965$ 95%2.17
2013 2,433,119 731,717 165,958 3,330,794 3,413,731 98%2.16
2014 2,455,759 833,089 192,151 3,480,999 3,625,460 96%2.00
2015 2,615,824 914,211 201,939 3,731,974 3,948,802 95%1.99
2016 2,616,243 911,431 198,327 3,726,001 3,721,053 100%1.98
2017 3,158,813 1,198,038 229,222 4,586,073 5,461,554 84%1.88
2018 3,556,588 1,423,538 273,940 5,254,066 5,908,197 89%1.75
2019 4,015,768 1,540,926 292,317 5,849,011 6,334,479 92%1.94
2020 4,450,475 1,732,969 315,883 6,499,327 7,092,716 92%1.81
2021 4,631,379$ 1,710,197$ 319,576$ 6,661,152$ 6,771,727$ 98%1.68
Source: Franklin County Assessor
* Added in 2021
Assessed Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Real Property
Note: Property in Franklin County is physically reassessed once every six years on a cyclical basis. In addition, assessed values are updated countywide on an annual
baisis by statical analysis. The County Assessor asseses the value at 100% of market value for the current year for the selected properties on cycle for valuation.
Approximately 17% of real property is is physically reassessed annually. The estimated actual value is calculated by applying the percentage increase to 83% of the Total
Assessed Valuation amount.
Fiscal Year Ended
December 31 Admissions Cable TV Solid Waste Water Irrigation *Sewer Storm Reuse Gas Telephone Electricity Total
2012 148$ 391$ 536$ 679$ 85$ 647$ 91$ 158$ 707$ 1,910$ 3,489$ 8,841$
2013 157 404 512 689 89 666 97 124 525 1,711 3,465 8,439
2014 158 516 573 782 107 665 108 186 790 1,839 4,026 9,750
2015 160 532 660 809 115 680 124 191 829 1,695 4,635 10,430
2016 129 457 649 860 121 765 129 285 530 1,413 3,819 9,157
2017 122 552 764 914 138 842 134 295 794 1,361 4,707 10,623
2018 126 440 797 921 175 834 144 245 746 1,290 4,407 10,125
2019 384 543 932 1,030 178 960 167 320 905 1,187 5,406 12,012
2020 16 309 895 1,081 172 987 209 414 904 1,244 4,902 11,133
2021 36$ 563$ 978$ 1,200$ 183$ 1,100$ 192$ 387$ 921$ 818$ 5,103$ 11,481$
B&O Taxes by Type
Last Ten Fiscal Years
(in thousands of dollars)
(Gross Revenues times 8 1/2% Tax Rate)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Fiscal Year
Ended
December 31
Operating
millage
Debt
service
millage
Total city
millage
Operating
millage
Debt
service
millage
Total
county
millage
Operating
millage
Debt service
millage
Total
school
millage Special districts
Total direct
and
overlapping
rates
2012 1.968 0.203 2.171 1.440 0.214 1.654 4.352 2.250 6.602 0.033 10.460
2013 1.967 0.197 2.164 1.508 0.201 1.709 4.455 2.207 6.662 0.329 10.864
2014 1.956 0.045 2.001 1.352 0.135 1.487 4.314 2.528 6.842 0.323 10.653
2015 1.946 0.042 1.988 1.308 0.124 1.432 4.389 2.497 6.886 0.313 10.619
2016 1.937 0.039 1.976 1.401 0.113 1.514 4.318 2.390 6.708 0.311 10.509
2017 1.880 0.000 1.880 1.327 0.099 1.426 4.271 2.252 6.523 0.295 10.124
2018 1.746 0.000 1.746 1.262 0.098 1.360 3.947 2.004 5.951 0.280 9.337
2019 1.939 0.000 1.939 1.304 0.096 1.400 1.500 2.347 3.847 0.262 7.448
2020 1.808 0.000 1.808 1.257 0.000 1.257 1.500 2.263 3.763 0.255 7.083
2021 1.684 0.000 1.684 1.141 0.074 1.215 1.500 2.108 3.608 0.244 3.387
Source: Franklin County Assessors (Property tax booklet)
1 Overlapping rates are those of local and county governments that apply to property owners within the City of Pasco. Not all overlapping rates apply to all City of
Pasco property owners whose property is located within the geographic boundaries of the special district.
City of Pasco
Property Tax Rates
Direct and Overlapping 1 Governments
Last Ten Fiscal Years
Overlapping Rates
School DistrictCounty
Fiscal Year
Ended
December 31 City of Pasco 1 Franklin County 1
2012 861,063$ 1,037,096$
2013 933,302 1,110,257
2014 1,016,795 1,196,017
2015 1,125,061 1,315,962
2016 1,250,473 1,428,478
2017 1,333,598 1,534,639
2018 1,412,016 1,630,212
2019 1,474,580 1,699,297
2020 1,671,050 1,941,106
2021 2 1,900,223$ 2,204,733$
1 Source: Washington State Department of Revenue
Taxable Retail Sales
Last Ten Fiscal Years
(amounts expressed in thousands)
2 4th Qtr data was not available, amount was
estimated based on year-to-date information.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Taxpayer
Taxable
assessed
value Rank
Percentage of
total taxable
assessed value
Taxable
assessed
value Rank
Percentage of
total taxable
assessed value
Simplot-RDO LLC -$ 0.00% 88,743$ 1 1.31%
Crossing at Chapel Hill ICG LLC 16,085 5 0.48% 46,158 2 0.68%
Kenyon Zero Storage 0.00% 38,949 3 0.57%
Broadmoor LLC 15,383 6 0.46% 38,374 4 0.57%
Frank Tiegs LLC 37,085 5
Autozone Parts Inc 0.00% 37,084 6 0.55%
Syngenta Seed Inc 33,970 1 1.02% 33,744 7 0.50%
Columbia Villas LLC 0.00% 32,626 8 0.48%
Broadmoor Properties LLC 0.00% 31,258 9 0.46%
Pasco Processing LLC 27,530 2 0.82% 28,658 10 0.42%
Bybee Foods LLC 22,965 3 0.69%0.00%
Twin City Foods, Inc.17,970 4 0.54%0.00%
Wal-Mart, Inc 13,745 7 0.41%0.00%
Reser's Fine Foods, Inc $12,426 8 0.37%0.00%
Old Standard Life Insurance 11,205 9 0.34%0.00%
Art Mtg Borrower Propco 10,324 10 0.31%0.00%
$165,518 4.96% 412,679$ 5.54%
Source: Franklin County Assessor's Office
2012 2021
Principal Property Taxpayers
Current Year and Ten Years Prior
Fiscal Year Ended December 31
(amounts expressed in thousands)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Taxpayer
Tax
Revenue Rank
Percentage of
Total Tax
Revenue
Tax
Revenue Rank
Percentage of Total
Tax Revenue
Company A $3,489 1 51.45%5,048$ 1 63.91%
Company C 536 4 7.90%978 2 12.38%
Company B 639 2 9.42%921 3 11.66%
Company D 0.00%563 4 7.13%
Company F 592 3 8.73%130 5 1.65%
Company M 0.00%109 6 1.38%
Company Q 118 9 1.74%78 7 0.99%
Company I 201 8 2.96%30 8 0.38%
Company H 308 7 4.54%23 9 0.29%
Company S 0.00%19 10 0.24%
Company E 409 5 6.03%- 0.00%
Company G 391 6 5.76%- 0.00%
Company O 100$ 10 1.47%-$ 0.00%
$6,783 100.00%7,899$ 100.00%
Note: Per state privacy laws the names of the companies are confidential and have been indicated instead by letter. The
above information is provided to show concentration risk by company.
20212012
Principal B&O Taxpayers
Current Year and Ten Years Prior
Fiscal Year Ended December 31
(amounts expressed in thousands)
2012 2021
Sales % of Sales % of
Tax Total Tax Total
Industries Paid Rank Sales Tax Paid Rank Sales Tax
Motor Vehicle and Parts Dealers $1,712,650 1 21.40% $578,852,841 1 26.70%
Merchant Wholesale, Durable Goods 707,372 2 8.84%166,394,649 2 7.70%
General Merchandise Stores 525,553 3 6.57%154,881,362 3 7.20%
Building Material and Garden 370,663 6 4.63%144,118,620 4 6.70%
Construction of Buildings 319,537 7 3.99%137,907,855 5 6.40%
Food Services, Drinking Places 523,201 4 6.54%119,689,710 6 5.50%
Rail Transportation 312,434 8 3.90%104,518,446 7 4.80%
Specialty Trade Contractors 414,771 5 5.18%96,428,624 8 4.50%
Rental and Leasing Services 252,633 9 3.16%61,267,010 9 2.80%
Telecommunications 245,446 10 3.07%50,869,577 10 2.30%
Other 2,617,858 32.72%550,186,907 25.40%
Total $8,002,118 2,165,115,601$ 100.00%
Source: Washington State Department of Revenue
*4th Qtr data was not available, amount was estimated based on year-to-date information.
Top Ten Industries that Generate Sales Tax
Current Year and ten Years Prior
Fiscal Year Ended December 31
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Fiscal Year
Ended December
31
Total tax
levy for
fiscal year Amount
Percentage
of levy
Collections
in
Subsequent
years 1 Amount
Percentage
of levy
2012 6,850$ 6,693$ 97.7%154 6,847 99.9%
2013 7,011 6,833 97.5%163 6,997 99.8%
2014 7,064 6,933 98.1%75 7,008 99.2%
2015 7,287 7,169 98.4%93 7,262 99.7%
2016 7,748 7,627 98.4%107 7,734 99.8%
2017 7,949 7,932 99.8%105 8,037 100.0%
2018 8,381 8,288 98.9%116 8,404 100.2%
2019 10,667 10,558 99.0%120 10,677 100.1%
2020 11,064 11,036 99.7%86 11,122 100.5%
2021 11,450$ 11,345$ 99.1%133 11,345 99.1%
Source: Franklin County Treasurer's Office Tax Rolls
1 County provides four prior years and combines five years or more together.
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Collected within the fiscal year
of the levy Total collections to date
Fiscal Year
Ended
December 31
General
Obligation
Bonds
Special
Assessments
External
Loans &
Notes
Water/ Sewer
Bonds
Other Loans
Payable1
Total Primary
Government
Percentage of
Per Capita
Income2
Per
Capita 3
2012 4,710$ 395$ 1,258$ 24,260$ 11,067$ 41,690$ 2.2%665
2013 3,835 227 995 30,355 9,556 44,968 2.2%685
2014 3,315 208 748 28,030 7,997 40,298 1.9%595
2015 11,580 160 593 36,690 6,389 55,412 2.7%812
2016 10,430 45 12 38,438 508 49,433 2.3%701
2017 9,660 20 - 44,785 6,300 60,765 4.4%848
2018 8,865 - - 41,898 6,532 57,295 1.4%779
2019 26,125 - - 38,710 7,416 72,251 1.6%960
2020 24,795 - - 51,395 6,884 83,074 1.7%1,088
2021 23,920$ -$ 35,910$ 51,497$ 14,299$ 125,626$ 2.3%1,596
Resources:
1 Other Loans Payable include a Public Works Trust Fund Loan & Drinking Water State Revolving Fund Loan
2 Median household income provided by World Population Review.com.
3 2020 population estimate provided by World Population Review. Com.
Note: Details regarding the City's outstanding debt can be found in Schedule 9 and the Debt and Liability Notes in the notes to the financial statements.
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Governmental Activities Business-type Activities
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Fiscal Year
Ended
December 31
General
Obligation
bonds
Less: Amounts
available in debt
service fund 1 Total
Percentage of
estimated actual
taxable value of
property 2
Per
capita
2012 4,710$ 1,494$ 3,216$ 0.0999%51
2013 3,835 1,325 2,510 0.0754%38
2014 3,315 1,420 1,895 0.0544%28
2015 11,580 1,459 10,121 0.2712%148
2016 10,430 - 10,430 0.2799%148
2017 9,660 - 9,660 0.2106%135
2018 8,865 - 8,865 0.1687%120
2019 26,125 - 26,125 0.4467%347
2020 24,795 - 24,795 0.3815%325
2021 23,920$ -$ 23,920$ 0.3591%304
Note: Details regarding the City's outstanding debt can be found in the notes and schedules
to the financial statements.
1 Outstanding General Obligation bonds are paid by the General Fund.
2 See schedule of assessed value taxable property for property tax values.
Ratios of General Bonded Debt Outstanding
and Bonded per Capita
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Debt limit 80,378$ 88,541$ 88,576$ 91,985$ 98,436$ 105,699$ 120,022$ 137,507$ 153,031$ 169,960$
Total net debt applicable to limit 4,966 4,053 4,063 12,174 10,442 9,660 8,865 26,125 24,795 23,920
Legal debt margin 75,412$ 84,488$ 84,513$ 79,811$ 87,994$ 96,039$ 111,157$ 111,382$ 128,236$ 146,040$
Total net debt applicable to the
limit as a percentage of debt limit 6.18%4.58%4.59%13.23%10.61%9.14%7.39%19.00%16.20%14.07%
Legal debt margin calculation for fiscal year 2021
2020 Assesed Valuation for 2021 Collections 3,679,413$
Non-Voted Debt Capacity Value (1.5% of Assessed Value)55,191
Less:
Non-Voted GO Bonds Outstanding (11,180)
Other Non-voted General Obligations Outstanding (594)
(11,774)
Remaining capacity without a vote 43,417
Voted and Non-Voted Debt Capacity: (2.5% of Assessed Value)91,985
Less:
Voted GO Bonds Outstanding (400)
Non-Voted GO Bonds Outstanding (11,180)
Other Non-voted General Obligations Outstanding (594)
(12,174)
Legal Debt Margin
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year Ended December 31
125,896
101,976
23,920
6,798,397$
169,960
-
The 1.5 percent is the maximum limit for general purposes without a vote (councilmanic debt). A council may choose to allocate any portion of this debt capacity to the "voted" category. If done so,
this 1.5 percent of the indebtedness available without vote is to be proportionately reduced by the excess "voted" debt over 1 percent.
(23,920)
-
146,040$
Note: The total indebtedness for general purposes with or without a vote cannot exceed 2.5% of the value of taxable property. The general purposes indebtedness includes debt for capital leases
without a vote. The legal limit for capital leases debt (RCW 35.42.200) is included in the 2.5 percent and does not constitute extra allowable debt.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Direct debt Amount
Voted General Obligation -$
Councilmanic General Obligation Debt 23,920
Total direct debt 23,920
Overlapping Debt
Jurisdiction Outstanding debt
Percent
applicable
Estimated Share
of Overlapping
Debt
Franklin County 15,760 0.00%-
Pasco School District 195,650 0.00%-
Port of Pasco 22,896 0.00%-
Total overlapping debt -
Total direct & overlapping debt 23,920
Governmental activities debt ratios
Assessed valuation- 2021 (established in November, 2020 for the 2021 tax year)6,798,397
Population 79
Net direct debt to assessed valuation 0.35%
Net direct debt and overlapping debt to assessed valuation 0.35%
Assessed valuation per capita 86,384
Net direct debt per capita 304
Direct debt and overlapping debt per capita 304
Councilmanic debt and other obligations:
G.O. Bonds Outstanding 23,920
Other Non-voted G.O. Outstanding -
23,920$
Voted GO debt:
G.O. Bonds Outstanding -
-$
(1) Outstanding debt represents total general obligation debt.
(2) Applicable percentage is determined by ratio of assessed valuation of property subject to taxation
in the overlapping unit to valuation of property subject to taxation in the reporting unit.
Sources:
Franklin County
Franklin County Assessor's website- tax booklet
Port of Pasco
Pasco School District
Direct and Overlapping Governmental Activities Debt
As of December 31, 2021
(amounts expressed in thousands)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Operating RevenuesWater Sales (1)6,989,958$ 7,087,462$ 7,594,091$ 7,971,096$ 8,293,323$ 8,712,335$ 9,484,909$ 9,960,584$ 10,639,412$ 11,355,254$
Irrigation Sales (1)917,076 954,204 1,105,076 1,188,855 1,180,488 1,320,669 1,388,616 1,516,420 1,656,949 1,783,145
Sewer Sales (1)5,705,414 5,813,572 5,914,671 6,197,706 7,030,704 7,890,524 8,443,300 8,915,763 9,405,342 10,036,100
Process Water Reuse Sales (1)1,942,683 1,453,597 1,997,655 2,053,639 3,063,034 1,441,274 1,690,190 1,811,771 1,936,366 4,170,626
Stormwater Sales (1)883,305 972,375 1,054,682 1,305,138 1,386,325 3,291,049 3,549,788 3,522,920 5,194,726 2,070,306
Other Utility Charges (2)1,711,031 1,935,286 2,347,236 2,072,899 2,541,924 4,116,891 4,638,316 4,788,085 6,269,459 2,070,305
Total Operating Revenues 18,149,467 18,216,496 20,013,411 20,789,333 23,495,798 26,772,742 29,195,119 30,515,543 35,102,254 31,485,736
Operating & Maintenance Expenses
Salaries & Wages 2,461,588 2,599,431 2,830,832 3,016,535 3,097,784 3,461,414 3,336,849 3,827,189 3,984,669 4,015,954
Personnel Benefits (3)952,672 1,114,349 1,330,549 1,403,036 2,255,786 1,636,421 883,142 1,607,406 1,414,194 530,228
Supplies 855,626 1,121,916 1,492,845 1,633,374 1,556,387 1,839,792 1,991,868 1,627,982 2,119,290 2,086,280
Services (1)5,293,094 5,749,161 5,890,538 7,010,663 7,445,805 7,565,547 8,179,595 8,121,300 10,707,922 13,183,531
Total Operating Expenses 9,562,980 10,584,857 11,544,764 13,063,608 14,355,762 14,503,174 14,391,454 15,183,877 18,226,075 19,815,993
Operating Income 8,586,487 7,631,639 8,468,647 7,725,725 9,140,036 13,007,723 11,253,877 11,808,745 16,876,179 11,669,743
Non-Operating Revenue
Interest Income 39,607 41,009 15,685 28,310 48,536 94,215 413,342 538,452 235,648 22,696
Misc Income - - - - - - 120,582 50,973 54,959 95,942
Net Farmland Rental (4)- - - - - - -
Total Non-Operating Revenues (5)39,607 41,009 15,685 28,310 48,536 94,215 533,924 589,425 290,607 118,638
Net Revenues before Assessments 8,626,094 7,672,648 8,484,332 7,754,035 9,188,572 13,101,938 11,787,801 12,398,170 17,166,786 11,788,381
Special Assessment Repayments 225,506 257,366 123,404 94,284 52,673 99,775 36,689 24,254 12,564 17,374
Net Revenue for Debt Service Payment 8,851,600 7,930,014 8,607,736 7,848,319 9,241,245 13,201,713 11,824,490 12,422,424 17,179,350 11,805,755
Bond Debt Service (6)3,105,433 2,975,754 3,550,920 2,767,541 3,142,209 3,452,150 3,177,081 3,436,107 4,176,102 4,887,568
Debt Service Coverage (7)2.85 2.66 2.42 2.84 2.94 3.82 3.72 3.62 4.11 2.42
Balance Available for Other Purposes 5,746,167$ 4,954,260$ 5,056,816$ 5,080,778$ 6,099,036$ 9,749,563$ 8,647,409$ 8,986,317$ 13,003,248$ 6,918,187$
Notes:
(1) Excludes revenue raised and used to pay interfund city taxes.
(3) In 2018 & 2021, the pension accrual entry resulted in a negative expense making the personnel benefits total lower than reported in the past.
(4) Farm assets sold in 2011.
(5) Excludes noncash capital contributions, gains/losses, capital grants, etc.
(6) Excludes debt for prepaid maturities.
(7) Bond covenant requires coverage ratio of 1.25 times Maximum Annual Debt Service
1999 Sewer ULID Max Future Annual DS
2001 Sewer ULID Max Future Annual DS
2007 Sewer ULID Max Future Annual DS 60,781 64,963 64,963 64,963 11,394 11,394 11,394 11,394 11,394 11,394
2009 Sewer ULID Max Future Annual DS 138,801 138,801 137,889 137,889 82,680 82,680 82,680 82,680 82,680 82,680
199,582 203,764 202,852 202,852 94,074 94,074 94,074 94,074 94,074 94,074
Waterworks Utility Debt Service Coverage
(Per Bond Official Statement Definitions)
(2) Includes one time fees such as new connection, new meter, capital facility, penalties, operating grants, etc. Beginning in 2018, the capital facility revenues are excluded from this calculation.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Pasco
Fiscal Year
Ended
December 31 Population 1 Population 5
Kennewick-
Richland MSA
Unemployment
rate 1, 3, 6 Population 1
Per capita
personal
income 1, 8
Total Personal
Income1 (in
thousands)
Median
household
income 1, 5
Median
household
age 1
School
enrollment 2
2012 62,670 187,720 8.73%82,500 30,169 2,488,943 56,221 Not Available 15,994
2013 65,600 193,160 9.10%84,800 30,534 2,589,283 57,196 29.14 16,612
2014 67,770 197,560 7.70%86,600 32,831 Not Available 58,538 29.71 17,016
2015 68,240 199,610 6.80%87,150 33,955 Not Available 57,664 29.10 17,353
2016 70,560 203,090 6.90%88,670 32,999 Not Available 58,854 29.30 17,780
2017 71,680 206,110 5.70%90,330 36,666 Not Available 57,535 29.90 19,932
2018 73,013 210,183 6.50%92,540 37,836 Not Available 68,179 30 20,617
2019 74,846 215,599 5.90%94,680 39,526 Not Available 65,712 29.30 21,433
2020 77,108 221,589 6.70%96,749 43,271 Not Available 69,072 30.00 20,837
2021 78,700 224,640 4.50%98,350 Not Available Not Available Not Available 30.00 20,895
Fiscal Year
Ended
December 31
Average wage
per job 1 , 3
Unemployment
rate 1, 3, 6 Population 1
Per capita
personal
income 1 , 3, 7
Total Personal
Income3, 7
(in thousands)
Median
household
income 1
School
enrollment
K-12 2
2012 52,945 8.20%6,817,770 48,270 329,093,758 56,444 1,040,631
2013 53,334 7.00%6,882,400 47,898 329,653,195 57,554 1,047,353
2014 55,427 6.10%6,968,170 49,513 345,015,001 58,686 1,057,388
2015 57,057 5.70%7,061,410 51,410 363,027,088 62,108 1,067,998
2016 58,977 5.40%7,183,700 51,795 372,079,742 65,500 1,080,027
2017 53,470 4.40%7,310,300 52,783 385,859,565 68,550 1,104,039
2018 54,689 4.5%7,427,570 53,712 398,949,640 73,294 1,138,071
2019 69,700 4.3%7,546,410 64,898 489,746,916 78,687 1,147,573
2020 76,741 7.8%7,656,200 64,898 496,872,068 74,073 1,095,125
2021 Not Available 4.5%7,766,975 71,115 552,829,984 76,687 1,091,309
SOURCES:
1 State of Washington Office of Financial Management. Per capita income not available for 2020
2 Pasco School District (October Enrollment). Office of Financial management October Headcount Enrollment
3 Unemployment Data from the U. S. Bureau of Labor Statistics
4 data.census.gov
5 worlpopulationreview.com
6 Unemployment Rate as of Sept 2020 esd.wa.gov
7 bea.gov (2021)
8 fred.stlouisfed.org/series/pcpi53021
Demographic and Economic Statistics
Last Ten Fiscal Years
Tri Cities Franklin County
State
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Employees Industry Rank Employees Industry Rank
Battelle/PNNL 4,485 Research and Development 1 5,300 Research & Development 1
Kadlec Medical Center 2,175 Health Services 6 3,800 Health Services 2
Kennewick School District Education 3,043 Education 3
ConAgra (Lamb Weston)3,057 Agriculture Products 4 3,000 Food processing 4
Washington River Protection 1,686 Government 7 2,800 Government 5
Pasco School District Education 2,700 Education 6
First Fruits Farms Food Processing 2,200 Food Processing 7
Richland School District Education 2,200 Education 8
CH2M Hill 3,260 Government 3 2,100 Government 9
Bechtel National 2,850 Government 5 2,000 Government 10
URS 3,500 Government 2 Government
Washington Closure Hanford 1,478 Government 8 Government
Tyson Foods 1,300 Agriculture Products 10 Agriculture Products
Mission Support Alliance 1,370 Government 9 Government
Source: TRIDEC and Representatives from the employers
Employer Employees Industry Rank Employees Industry Rank
Lamb Weston Food processor 3,000 Food processor 1
Pasco School District 2,065 Education 1 2,700 K-12 2
Pasco Processing 350 Food processor-vegetables 5 876 Food processor-vegetables 3
Lourdes Health Network 807 Health Care 2 871 Health Care 4
Coyote Ridge Correction Facility Correction Facility 663 Correction Facility 5
Columbia Basin College 766 Community College 3 651 Community College 6
Walmart Retail 388 Retail 7
City of Pasco 305 City Services 6 487 City Services 8
Douglas Fruit 210 Fruit packaging 8 367 Fruit packaging 9
Tri-City Community Health Health Care 321 Health Care 10
Boise Cascade 571 Paper & packaging products 4
Resers 571 Food processor -potatoes 7
Franklin County 190 County services 9
West Communications 180 Call service 10
Source: TRIDEC and Representatives from the employers
**2021 data unavailable for Walmart, Douglas Fruit & Lourdes Health Network. Numbers are based off the the percentage increase between 2019 and 2020
**2021 data unavailable for Pasco Processing. Used last years number. Unable to do a percentage increase due to the large increase between 2019 and 2020.
Principal Employers
Current Year & 9 years prior
Year Ended December 31
Tri Cities*
2013 2021
Franklin County*
*The Tri-Cities are three closely tied cities which include Pasco, Kennewick and Richland. Each city borders one-another, making the Tri-Cities seem like
one uninterrupted mid-sized city. Due to this, many employers overlap among the three cities.
*Pasco is the county seat of Franklin County and the largest city within the county, making up approximately 70 percent of the county's population. Many
employers have locations in Pasco and throughout the county.
2013 2021**
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Employment Sector 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Goods Producing 13,400 13,600 1,400 14,600 14,900 16,600 17,300 18,200 18,800 19,600
Natural resources & construction 6,000 6,200 6,300 6,700 7,200 8,600 9,500 9,600 10,800 11,100
Manufacturing 7,400 7,400 7,700 7,900 7,700 8,000 7,800 8,600 8,000 8,500
Service providing 87,900 88,100 89,700 92,700 96,200 99,700 99,100 101,900 99,900 100,000
Private services providing 69,800 69,800 71,100 73,700 76,100 76,000 78,900 81,400 81,800 80,700
Trade, transportation, warehousing & utilities 17,100 17,500 18,100 19,100 20,100 25,800 20,100 20,600 20,200 21,200
Retail trade 11,700 11,800 12,100 12,700 13,900 13,200 13,700 14,100 14,500 14,800
Financial activities 3,900 4,200 3,900 4,000 3,900 3,900 4,200 4,300 4,000 4,200
Professional & business services 21,800 20,800 20,700 21,200 21,200 21,400 21,400 22,200 23,400 19,900
Information 800 800 800 900 900 900 700 800 800 700
Administrative & support services 10,600 10,500 10,400 10,800 11,700 11,200 11,900 12,500 12,900 11,200
Education & health services 13,400 13,700 14,400 14,800 15,400 15,500 17,000 17,600 18,000 19,600
Leisure and hospitality 9,500 9,600 9,900 10,400 11,200 11,300 11,800 12,200 12,100 11,400
Food services 6,900 7,000 7,300 7,600 8,400 8,600 9,000 9,200 7,000 9,400
Government 18,200 18,300 18,600 19,000 20,100 20,100 20,200 20,500 18,100 19,300
Federal & State government 4,200 4,300 4,300 4,300 4,400 4,400 1,200 1,300 4,200 4,500
Local government 13,900 14,100 14,300 14,700 15,700 15,700 16,100 16,200 13,900 14,800
Total Non-Agriculture 101,300 101,700 103,700 107,300 111,100 112,700 117,300 121,000 118,700 119,600
Total Private 83,100 83,400 85,100 88,300 91,000 92,600 96,200 99,600 100,600 100,300
Non-Agriculture Wage and Salary Workers
Employed in Kennewick-Richland-Pasco MSA (rounded to hundreds) (1)
Last Ten Fiscal Years
(1) Detail may not add to indicated total due to rounding. Excludes proprietors, agriculture, self-employed, unpaid family, domestic workers and military. Includes all full and part-
time wage and salary workers receiving pay during the period including the 12th of the month by place of work. Information for 2008 is from Washington State Employment
Security Department (using BLS data). All subsequent data (2009 and forward) is directly from the U. S. Bureau of Labor Statistics (BLS) and not seasonally adjusted.
Fiscal Year
Ended December
31
New
Single
Family
Permits
New Single
Family
Value
Total
Permits Total Value Permits Value Permits Value Permits Value
2012 338 72,768$ 1,507 85,314$ 328 30,317$ 54 26,360$ 1,889 141,991$
2013 220 50,396 1,705 73,701 364 44,173 44 6,862 2,113 124,736
2014 223 53,923 1,517 67,408 297 58,575 74 37,832 1,888 163,815
2015 248 62,949 1,724 83,033 317 48,618 98 36,291 2,139 167,942
2016 389 94,956 387 110,833 368 53,880 111 90,563 866 255,276
2017 474 119,754 2,618 134,519 421 56,276 80 10,034 3,119 200,829
2018 489 128,271 2,690 143,335 425 47,140 73 29,588 3,188 220,063
2019 588 154,803 2,270 169,400 424 88,716 61 9,755 2,755 267,871
2020 539 135,138 2,494 152,467 370 49,482 66 82,689 2,930 284,638
2021 367 97,151$ 2,362 122,659$ 465 176,402$ 33 276,882$ 2,860 575,943$
SOURCE:
1 City of Pasco website Building Permit History.
2 Includes single family and mobile home
TotalCommercialResidential 2 Industrial
Building Permits
Last Ten Fiscal Years
($ amounts expressed in thousands)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General government 45 45 49 50 52 54 53 53 53 54
Public safety
Muni Court 16 16 15 15 15 15 15 15 15 16
Police
Officers 67 71 71 71 77 77 81 83 83 83
Civilians 12 12 12 12 10 10 10 9 9 9
Fire
Firefighters and officers 33 35 35 39 35 36 39 39 39 37
Ambulance 19 19 19 19 28 36 40 40 40 42
Physical environment
Utilities
Water 21 20 20 22 24 22 22 22 22 23
Sewer 17 18 19 21 20 20 19 19 19 20
Water process reuse 2 3 2 2 3 7 7 7 7 7
Storm water 5 4 5 6 6 8 8 9 9 9
Irrigation 2 2 4 4 5 3 3 3 3 3
Transportation
Highways and streets
Engineering 14 16 17 17 17 17 17 17 17 19
Maintenance 7 6 7 8 10 10 10 9 9 8
Health and human services 3 3 3 3 3 3 3 3 3 3
Economic environment 15 15 16 16 16 16 16 16 16 16
Culture and recreation 16 16 16 17 20 20 19 19 19 19
Total 294 301 310 322 341 354 362 363 363 368
Source: Annual Operating Budget
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Fiscal Year Ended December 31
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
Public Safety
Police
Violent crime 178 151 183 156 146 143 166 188 197 201
Nonviolent crime 1,711 1,628 1,516 1,482 1,689 1,432 1,280 1,382 1,450 1,635
Calls for service 52,027 54,996 52,067 49,575 55,407 57,250 66,815 40,453 53,907 52,071
Victims per 1000 population 30 27 40 25 38 20 19 21 21 21
Fire & Emergency Medical Service
Number of emergency response-FIRE 260 279 241 281 243 289 313 204 186 200
% of total incidents-FIRE*6%6%5%6%5%5%5%4%3%3%
Number of emergency response-EMS 3,474 3,394 3,731 4,011 3,960 4,105 4,192 4,039 4,424 5,337
% of total incidents-EMS*79%79%79%79%77%75%74%78%78%78%
Number of emergency response-OTHER*662 658 730 805 914 1,116 1,186 941 1,088 1,286
% of total incidents- OTHER*15%15%16%16%18%20%21%18%19%19%
Community Development
Number of new Single Family units 314 204 219 243 387 468 485 585 525 354
Number of new Muli Family units 16 0 8 0 0 1 1 3 0 1
Number of new Manufactured units 21 16 4 5 2 6 4 3 14 12
Commercial permits 382 408 341 415 479 501 498 485 436 465
Construction value (millions)56.7 51.0 96.4 84.9 144.4 66.3 76.7 98.5 132.2 176.4
Residential permits 1,507 1,705 1,517 1,724 1,941 2,115 2,188 2,270 2,480 2,362
Construction value (millions)85.3 73.7 67.4 83.0 110.8 134.5 143.3 169.1 151.4 122.7
Physical environment
Highway and streets
Street resurfacing (miles)*4.6 3.50 3.57 9.63 0.00 0.00 0.00 3.9 0.0 1.0
Utilities
Water
Bills processed 217,911 226,934 227,682 233,858 239,670 242,916 248,347 274,138 263,115 271,092
New connections 449 328 340 438 568 672 589 724 584 413
Water meters replaced 2,640 1,431 1,471 1,499 1,117 187 146 39 41 17
Source: Various City of Pasco departments.
Operating Indicators by Function
Last Ten fiscal years
Year Ended December 31
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Amounts Amounts
No. of Permits in Thousands in Millions
Commercial 465 176,402$ 176$
Less Multi-Family 1 5,547 6
Industrial 33 276,882 277
497 447,737 448
Mobile Home 13 900 1
Plus Commercial Multi Family 1 5,547 6
Residential 2,349 121,759 122
2,363 128,206 128
Total 2,860 575,943 576
Single Family:
SFDU 354 96,251 96
Mobile Home 13 900 1
Total 367 97,151$ 97$
Building Permits
City of Pasco
Year ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Sub-Stations 4 4 4 4 4 4 4 4 4 4
Patrol units 52 53 58 39 54 61 64 66 66 66
Fire stations 3 3 3 3 3 3 3 4
Culture and recreation
Parks *27 27 27 21 24 28 28 28 28 31
Parks acreage *280 280 320 323 329 375 28 388 388 466
Swimming pools 3 3 2 2 2 2 2 2 2
Physical environment
Streets
Street (miles)821 823 839 843 669 675 665 738 750 754
Street lights 3,449 3,469 3,476 3,532 3,413 3,505 4,369 4,315 4,567 4,570
Traffic signals *50 50 50 50 50 51 51 52 52 52
Water
Water mains (miles)313 314 315 323 310 323 360 414 419 433
Services (accumulated total)16,660 16,754 16,783 17,206 17,248 20,079 21,708 22,874 23,164 23,361
Fire hydrants 2,106 2,114 2,138 2,214 2,190 2,724 2,836 2,906 3,015 3,043
Maximum daily capacity
Million Gallons per Day (MGD)30 30 30 32 33 33 33 33 33 33
Sewer
Sanitary sewer (miles)264 265 266 269 269.89 275.06 256 261.5 266 276
Maximum daily treatment
capacity (MGD) 7.1 7.1 7.1 6.5 6.5 6.5 6.5 6.5 6.5 6.5
Average daily treatment (MGD) *4.1 4.3 4.5 5.0 5.2 5.4 5.4 5.2 5.3 5.3
Water Process Reuse
Irrigated acres 1,848 1,848 1,848 1,848 1,832 1,856 1,856 2,277 1,856 1,856
Total Acres 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,360 2,368 2,368
Storm Water
Storm sewer (miles)45 46 47 48 49 51 88 96 98 99
Number of catch basins 3,289 3,322 3,336 3,451 3,508 3,705 5,163 5,333 5,567 5,674
Irrigation
Irrigation mains (miles) 90 95 96 101 101 168 174 176
Maximum daily capacity (thousand of
gallons) 17,100 17,100 20,760 20,760 20,760 32,760 21,013 21,013 21,013 21,013
Sources: Various government departments.
Capital Used by Function
Last Ten Fiscal Years
Fiscal Year Ended December 31
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Water System Accounts by Class
Single Family Residential 15,612 15,792 15,969 16,355 16,687 17,471 18,035 18,723 19,054 19,650
Multi-Family Residential 468 470 482 496 505 491 496 499 497 499
Commercial 1,321 1,421 1,372 1,430 1,443 1,470 1,524 1,528 1,555 1,603
Other 422 452 455 476 486 426 441 429 524 543
Total 17,823 18,135 18,278 18,757 19,121 19,858 20,496 21,179 21,630 22,295
Sewer System Accounts by Class
Single Family Residential 13,746 13,949 14,133 14,450 14,904 15,405 15,870 16,502 16,792 17,346
Multi-Family Residential 454 470 497 512 527 524 533 533 531 535
Commercial 969 987 1,004 1,125 1,128 1,137 1,183 1,177 1,203 1,152
Total 15,169 15,406 15,634 16,087 16,559 17,066 17,586 18,212 18,526 19,033
Stormwater System Customer Accounts 16,718 17,580 17,781 18,585 18,585 19,445 19,697 20,652 20,941 21,487
Irrigation System Customer Accounts 5,435 5,668 6,604 6,863 6,863 7,495 7,956 8,355 8,634 8,991
Process Water Reuse Facility Customers
Pasco Processing 46% 46% 41% 42% 44% 47% 41% 45% 49% 57%
Twin City Foods 21% 19% 22% 23% 26% 29% 19% 20% 18% 23%
CRF Frozen Foods-Bybee Food 15% 21% 19% 19% 15% 1% 17% 13% 19% 15%
Reser's Fine Food 18% 14% 18% 16% 15% 23% 23% 22% 14% 5%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Source: City of Pasco billing systems.
Waterworks Utility Customer Accounts
Last Ten Fiscal Years
For the Month of August
Percent of Total Annual Billed Revenue
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Water rates and monthly charges
Inside city rates listed; outside city 90% surcharge
Consumption per 100 cu feet 0.65$ 0.68$ 0.68$ 0.70$ 0.74$ 0.77$ 0.81$ 0.83$ 0.85$ 0.88$
Single family residential monthly base (in city)
Size of Service
3/4 inch 12.50 12.50 16.25 16.25 17.06 17.92 18.81 19.37 19.96 20.55
1 inch 18.74 18.74 24.35 24.35 25.57 26.85 28.19 29.04 29.91 30.81
Multi-family and commercial monthly base
Size of Service
3/4 inch 17.61 17.61 22.90 22.90 24.05 25.25 26.51 27.31 28.13 28.97
1 inch 25.43 25.43 33.05 33.05 35.18 36.93 38.78 39.94 41.14 42.37
1 1/2 inch 49.61 49.61 64.50 64.50 67.73 71.11 74.67 76.91 79.22 81.60
2 inch 79.59 79.59 103.45 103.45 108.62 114.05 119.76 123.35 127.05 130.86
3 inch 108.69 108.69 141.30 141.30 148.37 155.78 163.57 168.48 173.53 178.74
4 inch 156.60 156.60 203.60 203.60 213.78 224.47 235.69 242.76 250.04 257.54
6 inch 244.46 244.46 317.80 317.80 333.69 350.37 367.89 378.93 390.30 402.01
8 inch 338.77 338.77 440.40 440.40 462.42 485.54 509.82 525.12 540.87 557.10
Irrigation monthly charge
Base per residential unit 26.00 26.00 26.00 26.00 26.00 27.30 28.12 28.96 29.83 30.73
Per Irrigation unit 8.12 8.12 8.12 8.12 8.12 8.53 8.79 9.05 9.32 9.60
Per Irrigated acre 75.81 75.81 75.81 75.81 75.81 79.60 81.99 84.45 86.98 89.59
Sewer rates and monthly charges
Inside city rates listed; outside city 50% surcharge
Residential monthly base <= 4 units 24.80 24.80 24.80 24.80 27.22 29.67 31.45 32.71 34.02 35.38
Residential monthly base > 4 units 20.00 20.00 20.00 20.00 21.95 23.93 25.36 26.37 27.43 28.53
No residential consumption charge 8.30
Commercial base rate 33.35 33.35 33.35 33.35 36.60 39.90 42.29 43.98 45.74 47.57
Consumption per 100 cu ft over 1000 cu ft 1.29 1.29 5.25 1.29 1.42 1.54 1.64 1.71 1.78 1.85
Stormwater monthly charge
Residential
Single family residential 3.90 3.90 4.40 4.90 4.90 4.90 5.64 5.92 6.21 6.52
Apartments (per unit)1.95 1.95 2.20 2.45 2.45 2.45 2.82 2.96 3.11 3.26
Multi-family residential (per unit)1.95 1.95 2.20 2.45 2.45 2.45 2.82 2.96 3.11 3.26
Undeveloped parcels - - - - -
Vacant buildings 3.90 3.90 4.40 4.90 4.90 4.90 5.64 5.92 6.21 6.52
Industrial/Commercial
Parking for 0-5 vehicles 3.90 3.90 4.40 4.90 4.90 4.90 5.64 5.92 6.52 6.52
Parking for 6-10 vehicles 7.80 7.80 8.80 9.80 9.80 9.80 11.27 11.83 13.04 13.05
Parking for 11-15 vehicles 15.60 15.60 13.20 14.70 14.70 14.70 22.54 23.67 19.56 26.09
Parking for 16 plus vehicles 19.50 19.50 17.60 19.60 19.60 19.60 28.18 29.58 32.60 32.62
Additional charges
Property runoff to City systems ($1.25 min) - acre 86.71 86.71 86.71 86.71 86.71 86.71 111.16 116.72 122.55 128.68
State Highway right-of-way - acre 21.71$ 21.71$ 21.71$ 21.71$ 21.71$ 21.71$ 26.97$ 28.32$ 29.73$ 31.22$
Waterworks Selected Utility Rates
Last Ten Fiscal Years
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
PEANUTS PARK AND PASCO FARMERS MARKET
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
STATE REQUIRED SCHEDULES
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Schedule 9 -Schedule of Liabilities
For the Year Ended December 31, 2021
ID No.Debt Type Description Due Date Beginning Balance Additions Reductions Ending Balance
GENERAL OBLIGATIONS
251.11 Councilmanic 2019 LTGO Fire Station No. 83 & No. 84 12/01/2049 14,420,000 - 422,300 13,997,700
251.11 Councilmanic 2019 LTGO Gesa Stadium 12/01/2049 1,600,000 - 46,350 1,553,650
251.11 Councilmanic 2019 LTGO Animal Shelter 12/01/2049 1,600,000 - 46,350 1,553,650
251.11 Councilmanic 2015 LTGO Police Station 12/01/2035 7,175,000 - 360,000 6,815,000
263.81 Loans & Other Oblig to Federal Govt 2021 HUD Section 108 Loan4 12/01/2040 - 3,781,000 190,000 3,591,000
24,795,000 3,781,000 1,065,000 27,511,000
REVENUE OBLIGATIONS
252.11 Revenue Bond 2013A Sewer Bond 12/01/2028 1,675,000 - 180,000 1,495,000
252.11 Revenue Bond 2013T Reuse Facility Bond 12/01/2028 4,550,000 - 490,000 4,060,000
252.11 Revenue Bond 2015 Water/Sewer Revenue Refunding 12/01/2040 12,390,000 - 665,000 11,725,000
252.11 Revenue Bond 2017 Water/Sewer Improvement Revenue 1 12/01/2042 9,415,000 - - 9,415,000
252.11 Revenue Bond 2020A Water/Sewer Revenue Bond2 12/01/2029 7,135,000 - 680,000 6,455,000
252.11 Revenue Bond 2020B PWRF Revenue Bond 12/01/2050 16,230,000 - 375,000 15,855,000
263.84 Loans & Other oblig to state agencies Columbia Water supply DM15-952-037 10/01/2034 5,595,198 - 399,657 5,195,541
263.84 Loans & Other oblig to state agencies WQC-2021-Pasco-00020 Clean Water Preservation3 12/30/1941 - 3,105,502 - 3,105,502
263.84 Loans & Other oblig to state agencies WQC-2021-Pasco-00044 Clean Water Preservation3 12/30/1941 - 4,544,214 - 4,544,214
263.88 PWB Loan PWRF Pre-treatment Improvements 06/01/2024 107,221 324,411 28,579 403,053
263.86 Loans & Other Oblig to other gvts HAEIFAC - Reuse Facility Improvement Loan 07/01/2028 1,182,099 - 131,838 1,050,261
259.12 Accrued Leave Compensated Absences 12/31/2020 4,385,947 3,656,519 3,541,326 4,501,140
264.40 OPEB Liability Other Post Employment Benefits 12/31/2020 12,969,448 - 2,364,056 10,605,392
264.30 Pension Liability Pension Liabilities 12/31/2020 4,515,566 - 3,413,805 1,101,761
TOTAL REVENUE OBLIGATIONS 80,150,479 11,630,646 12,269,261 79,511,864
TOTAL LIABILITIES 104,945,479$ 15,411,646$ 13,334,261$ 107,022,864$
4New HUD Section 108 Loan for Peanuts Park Project
2New revenue bonds issued by the Water/Sewer Utility in 2020 to be used for Water/Sewer infrastructure improvements.
3New Department of Ecology Loan- Water Quality Combined Financial Assistance
1This bond requires interest only payments until 2030.
MCAG NO. 0292
Notes to Schedule of Long-Term Liabilities
TOTAL GENERAL OBLIGATIONS
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Grantor/
Pass-Through Grantor STATE
Program Title AWARDS
Washington State Department of Ecology
Mid Columbia and Lower Snake River Spill Response SPPREG-2020-Pasco-00030 100,000$
Aquifer Storage and Recovery Study ( ASR)58,810
158,810
Department of Recreation Conservation Office
Schlagel Park Boating Facilities Upgrade 81,423
A Street Sporting 4,584
86,007
Washington State Department of Commerce
Columbia East Forcemain & Lift Station CD16-96503-008 2,575,000
1923 Grant - Increasing Residential Building Capacity 36,129
Community Capital Facilities Unit 20-96627-189 150,920
2,762,049
Washington State Transportation Improvement Board
Lewis Street Overpass 8-4 174(020)-1 1,097,863
1,097,863
Washington State Department of Transportation /
Connecting Washington
Lewis Street Overpass STPUS-HLP-STPD-3530(006) 4,742,672
4,742,672
Washington State Department of Transportation /
Pedestrian & Bicycle Program
Lewis Street Overpass STPUS-HLP-STPD-3530(006)179,940
Sylvester Street Safety Improvements HSIP‐HLP‐3528(003) 8,710
188,650
Washington State Department of Health
2021 EMS Trauma Grant 1,260
1,260
TOTAL STATE AND LOCAL ASSISTANCE:9,037,311$
18-1360 DEV
20-63314-043
21 286
18-2355 Dev
SCHEDULE 15- SCHEDULE OF STATE AND LOCAL FINANCIAL ASSISTANCE
For the Year Ended December 31, 2021
Other
Identification
Number
WROCR-1921-Pasco-00015
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
From
Federal Agency Federal CFDA Other Pass-From
(Pass-Through Agency)Program Number Award Through Direct Total Pass through
to
Number Awards Awards Subrecipients Note
US Department of Commerce
Department of Commerce Investments for Public Works and
Economic Development Facilities 11.3000 EDA 07-01-07483 $ - $ 5,072,124 $ 5,072,124 1
Total Economic Development Cluster - 5,072,124 5,072,124
US Department of Housing and Urban Development
Department of Housing & Urban Development Community Development Block Grant 14.218 B-14-MC-53-009-CDBG - 1,772 1,772 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-16-MC-53-009-CDBG - 60,716 60,716 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-17-MC-53-009-CDBG - 58,316 58,316 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-18-MC-53-009-CDBG - 61,316 61,316 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-18-MC-53-009-SL2018 - 3,781,000 3,781,000 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-19-MC-53-009-CDBG - 145,324 145,324 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-20-MC-53-009-CDBG - 317,286 317,286 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-21-MC-53-009-CDBG - 554,337 554,337 1
Total CDBG - Entitlement Grants Cluster - 4,980,067 4,980,067
Department of Housing & Urban Development (Via City of Richland)Home Investment Partnerships Program 14.239 Home Program - 2020 145 - 145 1 & 3
Department of Housing & Urban Development (Via City of Richland)Home Investment Partnerships Program 14.239 Home Program - 2021 20,751 - 20,751 1 & 3
Total CFDA 14.239 20,896 - 20,896
US Department of Justice
Department of Justice COVID-19 Coronavirus Emergency
Supplemental Funding Program 16.034 2020-VD-BX-0545 - 11,789 11,789 1
Department of Justice (Via WA Department of Commerce)Violence Against Women 16.588 F19-31103-023 34,698 - 34,698 1
Department of Justice Public Safety Partnership and Community
Policing Grant 16.710 2017UMWX0103 - 141,682 141,682 1
Department of Justice Edward Byrne Memorial Justice
Assistance Grant 16.738 2020-DJ-BX-0532 - 13,200 13,200 1
Department of Justice (Via US Marshalls)Equitable Sharing Program 16.922 Equitable Sharing 2,112 - 2,112 1
Department of Justice Body Worn Camera Policy &
Implementation 16.835 2018-BC-BX-0010 - 18,581 18,581 1
Highway Planning and Construction Cluster
US Department of Transportation, Federal Highway Administration (Via WA State
Department of Transportation)Highway Planning and Construction 20.205 HSIP‐HLP‐3528(003)8,710 - 8,710 1
US Department of Transportation, Federal Highway Administration (Via WA State
Department of Transportation)Highway Planning and Construction 20.205 STPUL-3522 (002) LA 9952 140,224 - 140,224 1
US Department of Transportation, Federal Highway Administration (Via WA State
Department of Transportation)Highway Planning and Construction 20.205 STPUL 3552 (001) LA 9601 179,098 - 179,098 1
US Department of Transportation, Federal Highway Administration (Via WA State
Department of Transportation)Highway Planning and Construction 20.205 STPUL 9911 (011) LA 9831 134,095 - 134,095 1
US Department of Transportation, Federal Highway Administration (Via WA State
Department of Transportation)Highway Planning and Construction 20.205 STPUL-3515 (009) LA 9626 165,892 - 165,892 1
US Department of Transportation, Federal Highway Administration (Via WA State
Department of Transportation)Highway Planning and Construction 20.205 STPUL-3515 (010) LA 9648 148,553 - 148,553 1
US Department of Transportation, Federal Highway Administration (Via WA State
Department of Transportation)Highway Planning and Construction 20.205 STPUL 9911 (012) LA 9853 85,883 - 85,883 1
Total Highway Planning and Construction Cluster 862,455 - 862,455
Highway Safety Cluster
US Department of Transportation, National Highway Traffic Safety Administration (Via
WA Traffic Safety Commission)State and Community Highway Safety 20.600 2021-HVE-4055-Region 14 Target Zero
Task Force 2,910 - 2,910 1 & 2
Total Highway Safety Cluster 2,910 - 2,910
US Department of the Treasury 1
US Department of the Treasury (Via Administrative Office of the Courts)COVID-19 Coronavirus Relief Fund 21.019 CARES186 150,000 - 150,000 1
US Department of the Treasury (Via Benton Franklin Health District)COVID-19 Coronavirus Relief Fund 21.019 CARES186 1,201,920 - 1,201,920 1
Total CFDA 21.019 1,351,920 - 1,351,920
US Department of the Treasury Coronavirus State and Local Fiscal
Recovery Funds 21.027 N/A - 2,990,076 2,990,076 2,990,076 1
US Department of Health & Human Services 1
US Department of Health & Human Services (Via Benton-Franklin Health District)Epidemiology and Laboratory Capacity
for Infectious Diseases 93.323 HSDCOP202000 558,591 - 558,591
US Department of Health & Human Services
US Department of Health & Human Services COVID-19 Provider Relief and
American Rescue Plan 93.498 - 40,236 40,236 1
US Department of Homeland Security
US Department of Homeland Security, FEMA (Via Washington State Military
Department)Public Assistance 97.036 FEMA-4481-DR-WA 40,870 - 40,870 1
US Department of Homeland Security, FEMA Assistance to Firefighters Grant 97.044 DHS-18-GPD-044-000-98 - 3,231 3,231 1
US Department of Homeland Security (Via Michigan Public Health Institute)Assistance to Firefighters Grant 97.044 DHS-19-GPD-044-000-99 300 - 300 1
US Department of Homeland Security, FEMA Assistance to Firefighters Grant 97.044 DHS-19-GPD-044-000-99 - 406,548 406,548 1
Total CFDA 97.044 300 409,779 410,079
US Department of Homeland Security, FEMA Staffing for Adequate Fire and
Emergency Response 97.083 EMW-2016-FH-00428 6,087 - 6,087 1
Total Federal Awards Expended: 2,880,839$ 13,677,534$ 16,558,373$ 2,990,076
The accompanying notes are an integral part of this schedule.
City of Pasco
MCAG NO. 0292
SCHEDULE 16- SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2021
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
City of Pasco
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2021
NOTE 1 – Basis of Accounting
The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the City’s
financial statements. The City uses a modified accrual basis of accounting for its governmental funds and full
accrual basis of accounting for its proprietary funds.
NOTE 2 – Federal De Minimis Indirect Cost Rate
The city has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
NOTE 3 – Revolving loan – Program income
The City participates in the Neighborhood Stabilization Program for recovering foreclosed properties which
are rehabilitated and sold as low-income housing. Under this federal pass-through grant, the sale of low-income
homes by the City is considered program income, and the cost of rehabilitating homes and purchasing
properties are considered expenditures. The amount of loan funds disbursed to program participants for the
year was $0. The amount of principal and interest in loan repayments received for the year was $10,000.
The City also participates in the Housing and Urban Development HOME Program for low-income
individuals, as part of a regional consortium administered through the City of Richland. The City is not privy
to information on what portion of funds received from the City of Richland are derived from program income.
The amount of loan funds disbursed to program participants for the year was $10,000 and is presented in this
schedule. The amount of principal and interest in loan repayments received for the year was $152,640.
NOTE 4 – Program Costs
The amounts shown as current year expenditures represent only the federal grant portion of the program costs.
Entire program costs, including the City’s portion, are more than shown. Such expenditures are recognized
following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local,
and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 5 – Federal Loans
The City was approved by HUD to receive a loan totaling $3,781,000 to renovate Peanuts Park within
the City’s downtown area. The amount listed for this loan includes the beginning of the period loan
balance as the loan was received within the current fiscal year. The balance owing at the end of the
period is $3,591,000. The current year loan is reported on the City’s Schedule of Liabilities.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
MCAG 0292 Schedule 17
City of Pasco
LIMITATION ON PUBLIC WORKS PROJECTS PERFORMED BY PUBLIC EMPLOYEES
For the Year Ended December 31, 2021
Total current public work construction budget as amended (annual or 153,909,390
biennial as applicable)
Allowable portion of total public works (10 percent of line 1)15,390,939
Less: Amount (if any) in excess of permitted amount from prior budget
period.0
Total allowable public works (line 2 minus line 3)15,390,939
Total public works projects performed by public employees during the
current year (include work performed by a county)665,345.65
If this is the second year of a biennial budget, total public works projects
performed by public employees during the first year of biennium 0
Restricted under (over) allowable (line 4 minus line 5 minus line 6)14,725,593
NOTE: If the restricted amount is over allowable, this amount must be carried forward
to the next budget period report.
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
MCAG NO. 0292 Schedule 19
City of Pasco
Labor Relations Consultant
For the Year Ended December 31, 2021
Has your government engaged labor relations consultants? _X__ Yes ___ No
If yes, please provide the following information for each consultant:
Name of firm: Summit Law Group
Name of consultant: Elizabeth Kennar
Business address:
315 5th Ave. Suite 1000
Seattle, WA 98104
Amount paid to consultant during fiscal year: $11,986.50
Terms and conditions, as applicable, including:
Rates (e.g., hourly, etc.) $350 per hour
Maximum compensation allowed -0-
Duration of services Various throughout the year
Services provided Union Bargaining, Human Resource issues (FMLA, PFML, Terminations
etc…)
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
MCAG No. 0292 Schedule 21
Local Government Risk Assumption
For the Year Ended December 31, 2021
1. Self-Insurance Program Manager: Colleen Chapin
2. Manager Phone: 509.545.3473
3. Manager Email: chapinc@pasco-wa.gov
4. How do you insure property and liability risks, if at all?
a. Formal self-insurance program for some or all perils/risks
b. Belong to a public entity risk pool
c. Purchase private insurance
d. Retain risk internally without a self-insurance program (i.e., risk assumption)
5. How do you provide health and welfare insurance (e.g., medical, dental, prescription drug, and/or
vision benefits) to employees, if at all?
a. Self-insure some or all benefits
b. Belong to a public entity risk pool
c. All benefits provided by health insurance company or HMO
d. Not applicable – no such benefits offered
6. How do you insure unemployment compensation benefits, if any?
a. Self-insured (“Reimbursable”)
b. Belong to a public entity risk pool
c. Pay taxes to the Department of Employment Security (“Taxable”)
d. Not applicable – no employees
7. How do you insure workers compensation benefits, if any?
a. Self-insured (“Reimbursable”)
b. Belong to a public entity risk pool
c. Pay premiums to the Department of Labor and Industries
d. Not applicable – no employees
8. How do you participate in the Washington Paid Family & Medical Leave Program?
a. Self-insured (“Voluntary Plan”) for one or both program benefits
b. Pay premiums to the State’s program for both benefits
c. Not Applicable – No Employees
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
Please list the title of the self-
insurance program or type of risk
covered by self-insurance:
Medical Dental
Self-Insurance as a formal program? Yes Yes
If yes, do other governments participate? No No
If yes, please list participating governments.
Self-Insure as part of a joint program? No No
Does a Third-Party Administer manage claims? Yes Yes
If no, does an employee or official reconcile claims
payments to the information in the claims management
software or other records of approved claims? (Not
applicable for self-insured unemployment compensation.)
Has program had a claims audit in last three years? Yes Yes
Are program resources sufficient to cover expenses? Yes Yes
Does an actuary estimate program liability? No No
Number of claims paid during the period? $27,632 $1,720
Total amount of paid claims during the period? $5,888,210 $456,261
Total amount of recoveries during the period? $8,802 0
City of Pasco, Washington 2021 Annual Comprehensive Financial Report
OUR THANKS TO AN EXCELLENT TEAM
We recognize the contributions of the following City of Pasco employees for their contribution to this
report. Each member of this team of professionals played a key role in producing this comprehensive
annual financial report. Their dedication and teamwork are essential to the success of this report and all
of their efforts are hugely appreciated.
Richa Sigdel
Finance Director
Darcy Buckley
Finance Manager
Griselda Garcia
Accounting Lead
Brian Quinn
Staff Accountant
Charlene Sandland
Staff Accountant
Karen Conn
Staff Accountant
Rosa Moreno
Staff Accountant