HomeMy WebLinkAbout2023 ACFR
ANNUAL COMPREHENSIVE FINANCIAL
REPORT FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2023
www.pasco-wa.gov
Prepared by:
Finance Department
Darcy Buckley-Finance Director
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ………………………………………………………………………………. 1
Organizational Chart ………………………………………………………………………………. 9
Directory of Leadership Team………………………………………………….…………………... 10
Directory of Executive Officials.…………………………………………………...………………. 11
FINANCIAL SECTION
Independent Auditor’s Report ………………………………………………………………...…… 12
Management’s Discussion and Analysis …………………………………………………………... 16
Basic Financial Statements
Government Wide Financial Statements…………………………………………………………. 21
Statement of Net Position…………………………………………............................................. 39
Statement of Activities…………………………………………………………………………. 41
Fund Financial Statements
Balance Sheet – Governmental Funds ......................................................................................... 42
Reconciliation of Balance sheet to Statement of Net Position……………………………………… 44
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds... 46
Statement of Net Position - Proprietary Fund…………………….……………………………. 48
Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds…………. 50
Statement of Cash Flows – Proprietary Fund …………………………………………………. 51
Statement of Fiduciary Net Position – Fiduciary Funds.…………………….…………………. 52
Notes to the Financial Statements….…………………….…………………………….………… 54
Required Supplementary Information
Schedule of Changes in Net OPEB Liability and Related Ratios - Firemen’s OPEB Plan. ….. 121
Schedule of Investment Returns – Firemen’s OPEB Plan. ……………………………………. 122
Schedule of City Contributions - LEOFF 1 OPEB ……………...….…………………………. 122
Schedule of Changes in Net OPEB Liability and Related Ratios – LEOFF 1 OPEB ………… 123
Schedule of Changes in Net Pension Liability and Related Ratios – Fire Pension Plan ....…… 124
Schedule of Employer Contributions – Fire Pension Plan …………………………….………. 125
Schedule of Proportionate Share of the Net Pension Liability - All State Plans…………….… 126
Schedule of Investment Returns – Fire Pension Plan …………………………………………. 126
Schedule of Employer Contributions - All State Plans………………………………………... 126
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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TABLE OF CONTENTS (continued)
Combining and Individual Fund Statements
Combining Balance Sheet – Nonmajor Other Governmental Funds …………………………. 130
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Other Governmental Funds ………………………………………………………. 131
Combining Balance Sheet – Nonmajor Special Revenue Funds ……………………………. 132
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Special Revenue Funds……………………………………………………………. 137
Combining Balance Sheet – Nonmajor Debt Service Funds…….……………………………... 142
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Debt Service Funds…………………………………………………………….... 143
Combining Balance Sheet – Nonmajor Permanent Funds…….……………………………….. 144
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Permanent Funds……………………………………………………………......... 145
Combining Statement of Fiduciary Net Position…………………………................................... 146
Schedule of Revenue and Expenditures – Budget to Actual Nonmajor Other Governmental
Funds…………………………………………………………………………………………. 148
Combining Statement of Cash Flows – Nonmajor Internal Service Funds................................. 149
Combining Statement of Net Position– Pension & OPEB Trust Funds…………….…………. 152
Combining Statement Assets and Liabilities – Custodial Funds….…………………………… 153
STATISTICAL SECTION
Financial Trends
Net Position by Component……………………............................................................................ 156
Changes in Net Position………..................................................................................................... 157
Governmental Activities Tax Revenues by Source………………….……….…………………. 159
Fund Balances of Governmental Funds………………….............................................................. 160
Changes in Fund Balances of Governmental Funds…………………........................................... 161
Revenue Capacity
Assessed Value of Taxable Property .......................................................................................... 162
B&O Taxes by Type ……………………................................................................................... 162
Property Tax Rates ....................................................................................................................... 163
Taxable Retail Sales ……………………………….……………………................................... 163
Principal Property Taxpayers…………………………….………………................................... 164
Principal B&O Taxpayers …………………………….…………………..............……………. 164
Top Ten Industries that Generate Sales Tax……………………………………………………. 165
Property Tax Levies and Collections…………………................................................................. 165
Debt Capacity
Ratios of Outstanding Debt by Type/Ratio of General Bonded Debt Outstanding....................... 166
Ratios of General Bond Debt Outstanding and Bonded per Capita……………………………... 166
Legal Debt Margin……………………………............................................................................. 167
Direct and Overlapping Governmental Activities Debt……………………………………......... 168
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TABLE OF CONTENTS (continued)
Waterworks Utility Debt Service Coverage……........................................................................... 169
Demographic and Economic Information
Demographic and Economic Statistics.......................................................................................... 170
Principal Employers…………………………………………...................................................... 171
Non-Agriculture Wage and Salary Workers……………………………………………………. 172
Building Permits………………………………………………………………………………… 172
Operating Information
Full Time Equivalent City Government Employees by Function…………………………........ 173
Operating Indicators by Function………………………………………………………………. 174
Building Permits………………………………………………………………………………… 175
Capital used by Function………………………………………………………………………... 176
Waterworks Utility Customers ………………………………….…..………………………….. 177
Waterworks Utility Rates………………………………………………….……………………. 178
STATE REQUIRED SCHEDULES
Schedule 9 – Schedule of Long-Term Liabilities……………………………….……….………… 181
Schedule 15 – Schedule of State Financial Assistance………………………………….…………. 182
Schedule 16 – Schedule of Expenditures of Federal Awards………………………………………. 183
Notes to Schedule of Expenditures of Federal Awards…………………………….………….…… 185
Schedule 17 – Limitation on Public Works Projects performed by employees……………………. 186
Schedule 21 – Local Government Risk Assumption………………………………………………. 187
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Date: September 18, 2024
People of the City of Pasco
Honorable Mayor and City Council,
We are pleased to submit the Annual Comprehensive Financial Report of the City of Pasco for the
year ending December 31, 2023. This report is prepared and published annually as the official
financial report and complies with State law (RCW 43.09.230). As required by the Revised Code
of Washington, annual reports for all local government entities must be certified and filed with the
Office of the Washington State Auditor.
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, 2023, have been audited by the
State’s Auditor’s Office (SAO). Based on audit testing and examination, the independent auditor
concluded an unmodified opinion.
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
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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.
GAAP requires that management provide a narrative introduction as well as overview and analysis
of financial results 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 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 37.5
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 April 2023,
the combined population of Benton and Franklin Counties was approximately 316,600. Pasco’s
estimated population for the same period was 81,280 as estimated by the Washington State Office
of Financial Management.
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
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. The City Council is
responsible for enacting all legislation and making general policy decisions governing the City.
The City Council appoints a City Manager who serves as the chief executive officer. The City
Manager serves at the pleasure of the City Council. As the City’s executive, the City Manager
implements the policies and goals of the City Council, manages overall operations City-wide, and
provides leadership for development of City departments to ensure quality service delivery to the
community.
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 utility system and a cemetery. The City contracts with Mid-Columbia Libraries,
providing two library facilities within Pasco. Solid waste service is provided by Basin Disposal.
Franklin PUD and Big Bend Electric provide power services. Pasco School District provides
publicly funded K-12 education. Higher education is available at Columbia Basin College. A
neighboring city hosts a branch campus of Washington State University. Also located in the City
of Pasco are a championship golf course that is operated by Sun Willows Golf through a lease
agreement and a baseball stadium that is leased to a Class A minor league baseball team, the Tri -
Cities Dust Devils. Both golf course and baseball facilities 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 chosen to enter into lease agreements.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
The City prepares a biennial budget on the modified accrual basis in accordance with the Revised
Code of Washington (RCW) 35.A.34. Biennial budgets must be adopted by the City Council prior
to the first of each odd-numbered calendar year. Budget reviews are conducted mid-biennium.
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.
LOCAL ECONOMY IN 2023
While separate cities, the Tri-Cities Region is well integrated. Many people of the area live in one
city while working in another. Based on information shared in the Tri-Cities Area Journal of
Business, job creation in 2023 was positive but not robust. Per the Bureau of Labor Statistics,
unemployment decreased in the region as the year progressed with a small, and typical, uptick at
the end of 2023. The agricultural industry influence in our region creates a seasonal cooling that
contributes to the end of year trend.
Like other communities, the Tri-Cities economy encountered challenges associated with inflation
and effects of supply chain interruption exiting the pandemic. Entering 2023, associated
uncertainty about the length and impact of these elements existed. The increased cost of borrowing
and its potential negative impact on residential and commercial construction was the greatest
unknown for Pasco. Significant growth-related plans took root in 2022, including the formation of
a Tax Increment Financing Area (TIF) in the Broadmoor Area of town and the creation of a
development-focused Local Improvement District covering 1,100 acres in the City’s Urban
Growth Area.
Construction in the community has been consistently strong for years. Despite concerns related to
economic uncertainty, building permit activity in 2023 bettered 2022 yearend results by $82M.
The composition of permits issued differed from the prior year. However, the only reduction in
permit value, as compared to 2022, was in residential permit categories. Overall, the number of
building permits issued in 2023 was slightly less than 2022 activity, reduced by 19 permits.
Permitted values for commercial and industrial activity improved 45% and 66.3%, respectively.
Residential permit values were lower in 2023 as compared with 2022, by 12%. When comparing
issuance of single-family dwelling units (SFDU) by quarter, a trend emerges. Through the first
half of 2023, permitting related to SFDU were underperforming 2022 by 37%. However, quarter
three of 2023 was three percent (3%) increased over the same time period of the prior year. The
final quarter of 2023 finished strong, reflecting an improvement over quarter four 2022 count by
122%.
In 2023, the City’s property tax rate was $1.287 per thousand dollars of assessed value, a 12%
reduction from the prior year. Between 2022 and 2023, General Fund property tax revenues
increased by $695K. When implementing 2022 levy for 2023 collections, the statutorily allowable
one percent (1%) increase was banked. Therefore, this increase is the result on new construction.
Reflective of 2023 permitting activity, the assessed property for the City of Pasco grew in valuation
by $2.58B, to $12.33 B for 2024 tax collections. When setting the 2023 levy for 2024 collection,
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Council determined to approve the one percent (1%) increase. This decision was influenced by
increasing demands for City services. However, despite the one percent levy increase, growth in
assessed value resulted in a decreased rate in 2024 by approximately 16% to $1.079.
Sales and use tax revenue was estimated to reach $25.95M during creation of the 2023-2024
Biennial Budget. Actual sales tax revenue for 2023 was lower than anticipated by $778K. By
sector, in 2023 only two categories are over 10% of total revenues. They are retail trade (47.13%)
and construction (17.39%). Retail trade tax reporting was lower than 2022 by 3.5% or $343K. In
reviewing the many retail classifications, small changes across the spectrum of reporting vendors
are observable. In 2022, sales of new and used cars, recreational vehicles and retail activity at
home centers elevated retail sales approximately 8%, or $755K, higher than reported in 2021.
These categories of sales decreased slightly in 2023. Construction sales tax revenue for the past
three years was $2.3M (2021), $5.34M (2022) and $3.5M (2023). The significant increase in 2022
was associated with one large scale warehouse project. With associated sales tax removed from
the comparison, the average growth of construction sales tax for the three-year period is 5.3%.
Real Estate Excise Tax (REET) revenues were impacted by the economic environment of 2023.
In 2023, the City received reduced revenue of $370K in REET proceeds as compared to the prior
year. This revenue source, created by real estate sales transactions, is used to support capital
construction of City amenities. Therefore, while operational financing is not directly affected,
continuation of this trend would result in the need for other financing or a lack of financing for
City projects.
Beginning in 2023, the City significantly increased staffing related to various factors:
• Award of a SAFER grant at the close of 2022 year closed supported the addition of
15 firefighters in the General and Ambulance Funds. This grant covers three years of
associated labor expenses.
• The City absorbed operations of Tri-Cities Animal Control Facility with the
addition of 20 FTEs.
• City of Pasco operation of Basic Law Enforcement Academy in cooperation with
the State of Washington added two staff members.
• Nine staff members were added to support new amenities and programs in parks &
recreation department, as well as secondary impact on facilities staff.
• Approximately a dozen positions were added in City utilities to prepare for growth
in service area and related capacity needs.
• During the pandemic, uncertainty of financial impact and the need for cautious
decision-making postponed staffing changes. Aware of existing personnel needs and
growing demands for City services, various City departments added staff.
• Finally, while not planned, the City assumed operational control of downtown
facilities and activities previously the responsibility of a mainstreet organization upon
vacancy of executive staff and poor audit results.
FUTURE ECONOMIC FORECAST
The City of Pasco was featured as one of the “Fab Four of the Pacific Northwest” in the March
2024 issue of Site Selection magazine. The impetus for this distinction was Pasco’s recognition as
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
one of the 50 fastest growing Cities in the United States by Forbes Magazine. The article analysis
identified improvement in economic factors that result in greater prosperity for residents including
population growth, median household income and average household income. Pasco was ranked
24th in the list.
The City recently implemented new zoning regulation meant to promote greater housing
flexibility. At the end of 2023, outstanding permits for residential construction in Pasco numbered
3,500. The permits reflect diverse housing options including single-family detached homes,
duplexes and townhomes.
Pasco School District, with voter approval of a $195.5M bond, is increasing its capacity to serve
student population with the addition of two high schools. Orion High School, a small innovative
high school and career center, will serve 600 students with the aim of graduating classes of work-
force ready students armed with credentials and certifications. Construction of the second
addition, a currently unnamed comprehensive high school #3, broke ground in August of 2023. It
is anticipated to serve 2,000 students.
Regionally, the Tri-Cities economy is anchored by agribusiness, food processing, manufacturing,
research and development, government, and health care. Recent entrants to the economic
landscape of area employers have located in Pasco, notably Amazon, Local Bounti and Darigold.
With their arrival, and upon full operation, employment is expected to be an estimated additional
3,600 jobs in Pasco.
Agribusiness
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).
Currently, PWRF serves several large food processors including Simplot, Pasco Processing,
Reser’s Fine Foods, Twin City Foods, Freeze Pack and Grimmway. In 2022, Reser’s Fine Foods
introduced a new plant that was twice the size of their original location. The $120M plant employs
about 250 staff. Also in 2022, new-to-the area, Darigold, began construction on a butter and protein
powder plant scheduled to come online in 2024 with employment estimated at 200 staff members.
Montana based Local Bounti is constructing a $40 million commercial greenhouse complex.
In 2023, the City partnered with Burnham SEV for design, construction and operation of a $122M
project adding two anerobic digestors and a biological nitrogen removal system to the wastewater
treatment system at PWRF. The City has been awarded State and Federal grants and low-interest
loans to offset costs. Once operational, the facility will generate renewable natural gas. Revenue
generated by the sale of renewable natural gas will offset facility costs. These infrastructure
improvements will serve Processors for the coming decades.
Transportation
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Pasco is well located to supply various transportation options for current and new business
ventures including a significant rail hub, a growing airport, easy access to an interstate highway
network and waterway availability.
• The Tri-Cities Airport, located in Pasco, has a four-phase terminal expansion plan
over the next decade. The investment is estimated to cost $139M.
• The Port of Pasco has created the Reimann Industrial Center encompassing 147
developable acres. The first tenant in the Center is the before mentioned Darigold
facility. Also proposed is a Port-located Aerospace Innovation & Manufacturing
Center. A Washington State Department of Commerce grant is funding creation of a
master plan for development. While still in the feasibility stage, with ultimate
construction being approximately six years away, the prospect of the addition of this
industry to Pasco is exciting.
• City of Pasco is completing approximately $24M of transportation projects in the
Broadmoor Area of town to augment commercial and residential development.
Tourism
The City of Pasco in coordination with its regional partners have created a Tourism Promotion
Area (TPA). 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 partners.
Based on data provided by Visit Tri-Cities, annual direct tourism spending of 3.72 million visitors
in the Tri-Cities region was $594.7 M. Tourism related employment of approximately 5,000 jobs
and visitor garnered revenue when added to the regional economy are estimated to provide tax
relief for residents of $600 per household.
In 2023, Pasco invested in a variety of capital projects, including Gesa Stadium enhancements, A-
Street Sports Complex, and Memorial Pool Improvements. City investment to the Gesa Stadium
of $1.9 M aligns with Major League Baseball contractual agreements and supports tourism with
an estimated economic impact of $12.4 M. In response to community desire for sports fields, City
funds, augmented by a state grant, will complete the initial phase of a 28-acre multi-sports facility.
Similar interest in practice and competition facilities for aquatic sports, have provided impetus for
improvements to the Memorial Pool facility, most notably the addition of a pool dome to extent
the season of use. These improvements are expected to draw Tri-Citian, as well as expanded,
regional, use.
Based on a voter approved ballot measure supporting construction of an aquatic center, the Pasco
Public Facilities District began receiving 2/10th of one percent of sales and use tax beginning in
January 2024. Significant steps have been taken in 2023, including preliminary design efforts,
engagement of an Owner’s Representative, approval of progressive design build construction
management contractor, engagement of a finance team to support debt issuance and outreach to
garner community input on facility amenities. The facility, anticipated to draw widespread
regional use including areas outside the Tri-Cities, is aiming to complete construction by summer
2025.
Government
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Originally developed as part of the Manhattan Project in 1943, the Hanford Reservation is located
approximately 35 miles northeast the City of Pasco in Benton County. The area encompasses
approximately 586 square miles and contains various nuclear and nuclear-related projects, serving
as a national energy resource center. Focus of work on the reservation today includes, 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 Department of Energy’s Pacific Northwest National Laboratory is located
nearby. 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 2,875acre District’s
80+ tenants employ more than 7,000 professional, technical and administrative staff, many of
whom reside in Pasco.
SUMMARY OF FUTURE ECONOMIC OUTLOOK
Past population growth trends in Pasco is not expected to wane. Estimates by the Office of
Financial Management predict the City’s population to reach 121,828 in 2038. The City is actively
preparing for the predicted growth.
A 2021 state law, House Bill 1189, allows cities, counties, and ports in Washington State to utilize
Tax Incremental Financing (TIF) to support infrastructure improvements. TIF availability does not
reflect the creation of a new tax. Instead, TIF serves as an economic tool. The incremental growth
of property tax revenue in the TIF area is dedicated to debt service incurred for publicly funded
improvements.
In October of 2022, Pasco City Council approved the formation of the Broadmoor Tax Increment
Area. Adoption of the Broadmoor TIF ordinance authorized the City to issue debt instruments up
to $39M to fund investment in public infrastructure. Efforts are currently underway to issue debt
of approximately $24M to fund transportation construction improvements necessary to spur and
support private development. Cognizant of the delay between debt service incurrence and
recognition of associated property tax receipts, the City has carefully weighed the timing and
priority of necessary improvements.
LONG TERM PLANNING
Anticipating community development and its impact on City services is an exciting challenge. The
excellent delivery of City services, using both labor and capital assets, is paramount. However,
revenues, especially in the form of property, sales and utility taxes, typically trail related
expenditures where new development is concerned. Careful planning is necessary.
To assist in this prospective planning, the City has created or is completing various facilities,
program and revenue assessments.
• Annual renewal of the six-year Capital Improvement Plan (CIP)
• Various Master Plans, including,
o Broadmoor Area,
o Downtown,
o Parks, Recreation and Open Space
o Housing Action and Implementation Plan
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
o Preparation of Major Comprehensive Plan Update
• In 2023, the City initiated development of a General Fund Forecast Model. This
plan evaluates a ten-year planning horizon. This analysis will result in calculation of
baseline results for provision of existing City services and programs. Using the
resulting data, long-range decision making is informed.
• In 2024, the City will begin creation of its periodic update to the Comprehensive
Plan in accordance with the Washington State Growth Management Act.
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,
Adam R. Lincoln, City Manager
Darcy Buckley, Finance Director
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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MANAGEMENTS’ DISCUSSION AND ANALYSIS
This section of the City of Pasco’s (City) annual comprehensive financial statements (ACFR)
provides a narrative overview and analysis of the financial activities for the fiscal year ended
December 31, 2023. Readers are encouraged to consider commentary provided in the
management’s discussion and analysis (MD&A) in conjunction with the preceding letter of
transmittal as well as the financial statements and notes to the financial statements. While each
portion of the ACFR is useful, they are produced to complement and complete financial reporting
for readers.
Financial Highlights
• The total assets and deferred outflows of resources of the City exceeded liabilities and
deferred inflows, or net position, at the close of December 31, 2023 by $700.8M. Net
investment in capital assets (capital asset cost net of depreciation and related debt) accounted
for 73% of this amount or $511.6M. Of the remaining net position of $189.3M, or 27%,
$109.6M may be used to meet the government’s ongoing obligations to its citizens, creditors
and employees without restriction.
• The City’s total net position improved by $64.9M, or 10% compared to 2022.
Governmental activities increased by $43.8M while business-type activities increase by
$21.5M.
• City-wide net investment in capital increased by $58.2M in 2023. This increase reflects the
investments made in City infrastructure less associated debt for parks, facilities, streets, and all
utility services.
• Restricted net position of governmental activities increased by $9.1M or 19%. The most
significant impact is related to fund balance restricted for capital improvements. In 2023, a
limited term general obligation bond in the amount of $12.6M was issued. A portion of these
proceeds have not been spent as of year end, $5.6M. Increases in net position restrictions were
also a result of changes for net other post-employment benefits (OPEB) and pension
recognition. Unrestricted net position of governmental activities decreased by $6.5M or 10%
as compared to 2022.
• Activity related to general revenues reported on the Statement of Activities resulted in an
improvement of $4.4M in 2023 over 2022. This increased recognition includes bond proceeds
and related premium of nearly $13.6M, improved interest income as a result of improved
interest rates of $846K, increased intergovernmental revenues of $828K. Offsetting these
revenue increases is a greater internal transfer between governmental and business-type
activities in 2023, an additional $3.6M of spending in the governmental category.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
• Expenses reported on the Statement of Activities for governmental activities were greater
than program revenues by $19.7M. For business-type activities, revenues exceeded expenses
by $14.5M.
• Governmental fund balances at year-end were $87.1M, a decrease of $5.9M, or 6.4% from
the prior year. Of this fund balance, a total of $36.6M or 42%, belongs to the General Fund.
A deficit fund balance of $1.9M is attributable to the Construction Fund, the result of
project spending that outpaced funding in the current period. Available support is being
identified based on reallocation during capital improvement plan analysis and pending
grant applications. The remaining governmental fund balance is the combined effect of
non-major governmental funds. These funds represent only a small portion of unassigned
fund balance, with their respective fund balances restricted for unique fund purposes.
o Revenues reported in the governmental funds increased from 2022 to 2023 by
$7.0M. Most notable changes included recognition of intergovernmental revenue
increases, including use of American Rescue Plan Act (ARPA) grant proceeds and
revenues for capital construction projects.
o Current expenses increased by $11.1M. Greater costs in 2023 are largely the result
of budgeted staffing increases in many City departments, as well as inflationary
pressure on cost of supplies and services.
o Capital expenses increased by $19.2M as compared to 2022 totals.
o Debt issuance expenses reflected in 2023 were greater than those of 2022 by an
amount slightly greater than half a million dollars.
• As of December 31, 2023, the City’s outstanding debt increased by $74.2M. Within the
governmental activities, total outstanding debt increased by $12.2M, reflecting the
issuance of a limited-term general obligation bond in the amount of $12.6M. Proceeds
received are for the support for construction of an additional fire station and improvements
at City facilities used for recreation and animal control. Within business -type activities,
total outstanding debt increased by $61.9M. Concurrent with issuance of the LTGO bond,
utility revenue and refunding bonds were issued, resulting in proceeds of $34.7M.
Approximately 11% of proceeds, $2.8M, was used to refund outstanding 2013 bonds. The
remaining $31.9M in proceeds will fund numerous projects across all City utility services.
The Water/Sewer Fund, a business type-activity, was the recipient of various loan
programs of the State of Washington. The projects supported include capital improvements
for facilities, including the West Pasco Water Treatment Plant, Butterfield Water
Treatment Plant, Water Reservoir Storage Tank Zone Three, Wastewater Treatment Plant,
and Process Water Reuse Facility storage and treatment projects. Typically, this form of
funding is received on a reimbursement basis and bears interest cost significantly lower
than debt funding achieved from the bond market. As detailed in Note 8, interest rates range
from zero percent to two percent. Therefore, the City will continue to look for opportunity
to apply for similar lower cost financing.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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.
The activities of the City are classified as either governmental or business-type depending upon
the nature of services provided and source of funding. Both government-wide financial statements,
statement of net position and statement of activities, segregate financial reporting based on the
activity type.
Governmental activities provide services that are principally supported by taxes and
intergovernmental revenues. Depending upon purpose and authority for revenue collection
financial activity is reported in either the General, Special Revenue, Debt Service, or Capital
Projects funds. Governmental activities included basic services of the City like police and fire
services, parks and recreation program delivery, streets and facilities maintenance, etc. Other City
activities are classified as business-type. These services receive all or a significant portion of their
financial support from fees and charges. The City’s business-type activities include utilities
(composed of individual water, sewer, irrigation, process water reuse, and storm water utilities),
equipment maintenance and equipment replacement services, and personnel benefits.
The City adopts a biennial budget. Budgets are adopted via ordinance at the fund level in
accordance with state law. A budgetary comparison statement is presented in the basic statements
for all major funds and a combined comparison for all non-major special revenue funds.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview
of the City’s finances in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets, liabilities, and
deferred inflows and deferred outflows, with the difference reported as net position. The purpose
of this statement is to report activity similarly to a consolidated balance sheet in private business.
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. Certain activity is only
presented the government-wide statement due to the basis of accounting differing from the fund
financial statements. Notably impacting the net position is the recognition of pension related assets
and liabilities for the five pension plans that the City is part of and other post-employment benefits
(OPEB) for two City-managed plans. In 2023, the City recognized an increase of $1.8M in OPEB
liability and a $1.5M decrease in pension asset, both of which are determined by independent
actuaries. Further, there was a $3.8M increase in lease liabilities and corresponding increase in
lease assets of $3.3M related to mandated reporting requirements for long term leases.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
The Statement of Activities presents information showing how the City’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).
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. All funds of the City 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 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). In 2023, the General, American Rescue Plan Act (ARPA), and Construction
Funds were the only major governmental funds. Financial results for major funds are reported
individually in the governmental fund balance sheet and governmental fund statement of
revenues, expenditures, and changes in fund balances. Remaining non-major funds financial
activity are consolidated. To view individual fund data for non-major governmental funds,
reference the combining and individual fund statements and schedules section of this report.
Proprietary Funds
The City 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 uses an enterprise fund to account for the Water/Sewer Utility. Internal service funds are
an accounting device used to accumulate and allocate costs internally among the City’s various
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
functions. The City 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 report financial information using the same measurement focus and basis of
accounting as that used for creation of the government-wide financial statements. Readers,
however, can find more detail reported in the enterprise fund 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 statements.
The proprietary fund basic statements are presented following the governmental fund statements
of this report.
Permanent Funds
Permanent funds are used to collect principal and disburse earnings for a specific purpose. The
principal value is preserved and protected from spending to generate interest earnings. In turn,
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. 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
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 nor is the City administratively involved. Instead, the
City provides accounting support of the activity for the benefit of the controlling entity.
Notes to the Financial Statements
The notes provide additional information that is essential to acquire a full understanding of the
data provided in the government-wide and fund financial statements. The notes are presented
following the basic financial statements of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents the
required supplementary information (RSI) concerning the City’s progress in funding it obligation
to provide pension benefits and Other Post-Employment Benefits (OPEB) to its employees.
Pension obligations discussed in RSI include the City’s ratable share of State PERS and LEOFF
plans, as well as those statutory obligations arising from past service of participating police and
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
firefighters who were hired by the City prior to October 1, 1977. Required supplementary
information can be found immediately following the notes to the financial statements of this report.
Government-wide Overall Financial Analysis
Net Position. This section provides analysis of the government-wide financial statements
including long-term and short-term information about the City’s overall financial condition. The
following tables address the financial results of the City as a whole.
Net position over time may serve as a useful indicator of a government’s financial health. The
City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of
resources by $696.2M as of December 31, 2023. This is an increase of $60.4M or 9%, as compared
to December 31, 2022. Government net position increased by $41.6M, or 11%. Business-type net
position increased by 18.8M or 8%. Following is a condensed version of the City’s statement of
net position for the years ended December 31, 2023 and 2022, respectively.
The City’s investment in capital assets, including land, buildings, infrastructure, and equipment,
is substantial. A subset of net position, net investment in capital, is reflected distinctly. This
calculation recognizes the cost of capital assets, less any outstanding related debt used to purchase
or improve those assets, net any unspent bond proceeds. As capital assets are used to provide
services, their value lies in support of service delivery to citizens and customers. The associated
net position is unavailable for future spending. Annual debt service payments related to debt is
paid by annual revenues of the supporting fund.
A second subset of net position is restricted for specific use or subject to external restrictions.
Examples include net position available for use based on adherence to bond covenants, for
construction completion or fulfilling commitments to employees in the form of pensions and other
post-employment benefits, and program specific support. The value of these restrictions on net
position total $79.2M, or 11%, of all net position.
2023 2022 2023 2022 2023 2022
NonCapital Assets 150,857,621 154,725,340 109,655,675 82,489,063 260,513,296 237,214,403
Capital assets(net)360,571,270 304,695,444 321,571,293 264,404,497 682,142,563 569,099,941
Total assets 511,428,891 459,420,784 431,226,968 346,893,560 942,655,859 806,314,344
Deferred outflows of resources 13,368,329 11,450,156 1,254,291 1,283,105 14,622,620 12,733,261
Total assets and deferred outflows of resources 524,797,220 470,870,940 432,481,259 348,176,665 957,278,479 819,047,605
Current Liabilities 23,538,113 13,684,866 19,419,018 13,237,141 42,957,131 26,922,007
Long-term liabilities 54,826,164 40,895,899 144,545,339 84,590,938 199,371,503 125,486,837
Total liabilities 78,364,277 54,580,765 163,964,357 97,828,079 242,328,634 152,408,844
Deferred inflows of resources 14,910,138 26,295,978 3,771,262 4,369,665 18,681,400 30,665,643
Total Liability and deferred inflows of resources 93,274,415 80,876,743 167,735,619 102,197,744 261,010,034 183,074,487
NET POSITION
Net investment in capital assets 316,190,716$ 275,101,782$ 195,379,340$ 178,195,662$ 511,570,056$ 453,297,444$
Restricted 58,763,733 49,635,184 20,433,411 24,280,851 79,197,144 73,916,035
Unrestricted 56,568,356 65,174,173 48,933,590 43,502,408 105,501,946 108,676,581
Total net position 431,522,805$ 389,911,139$ 264,746,341$ 245,978,921$ 696,269,146$ 635,890,060$
Governmental Activities Business-type Activities Total
City of Pasco
Net Position
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
The remaining net position of $105.5M is unrestricted. It may be used to meet the government’s
ongoing obligations to citizens and creditors. While not legally restricted, a portion of the
unrestricted net position has been committed by City Council action for projects and other
programs in the future.
At the end of 2023, the government-wide net position was positive for all reported categories,
governmental and business-type.
Governmental Activities:
Governmental activities net position increased by $41.6M, or 11%. Key elements of the current
year’s increase in net position as compared to year end 2022 net position follow.
Revenues: Program revenues increased by approximately $23.2M, or 40.9%. Program revenues
are composed of charges for services and grants and contributions to be used for operational or
capital efforts. Charges for services are recognized on a year-to-year basis and often associated
with recurring programs and services provided by the City. Some examples include fees for items
like permitting and planning services, engineering services, animal control service, parks and
recreation programs and police and fire services to other government agencies. Overall, charges
for service revenue decreased by 2% as compared to prior year. General Government related
charges for services decreased mainly due to a decrease of $0.9M in overhead and administrative
charges billed to all funds except for General Fund. These charges are for services provided by
General Fund departments such as Finance, Human Resources, Information Technology, Facility
maintenance among others. In recent years, there has been a shift in the beneficiaries of these
services to departments within General Fund as opposed to other funds, resulting in the decrease.
Public Safety revenues decreased related to ambulance transport net revenues largely due to timing
of funds received from the Ground Emergency Medical Transportation (GEMT) program. 2021
and 2022 experienced significant inflows of GEMT funds due to true-up payments from prior
years. 2023 revenue is a true reflection of actual activity during the reporting period.
Transportation impact fees, assessed solely in a section of town, decreased in 2023 as compared
to 2022, a reflection of slowed residential development. Revenues related to the natural and
economic function increased slightly despite the economic effect of elevated cost of borrowing.
Cultural and community related charges for services increased by approximately $1M. Nearly half
the increase was the result of park development fee collection. Remaining improvements in
revenues were scattered across a multitude of recreation type fees. Activity in program revenues
tied to grants and contributions increased over 2022. For operation grants and contributions, the
City benefitted from a SAFER grant supporting the addition of 15 firefighters. The associated 2023
revenue increase over last year was $1.3M. American Rescue Plan Act (ARPA) revenue of
approximately an additional $3.8M was recorded in 2023 in the category of natural and economic
environment. Capital contributions increased significantly over 2022, by an additional $24M in
2023. This activity is the result capital infrastructure constructed by developers and dedicated to
the City upon completion. Upon this dedication, the City assumes all future maintenance and
improvements associated with the asset.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Tax revenues are the largest source of revenue within governmental activities. As compared to
general revenues received in 2023, tax revenues accounted for 69%. Tax revenue was nearly twice
as large as charges for services revenues in 2023. Compared to 2022, tax revenue was only a small
amount greater, an increase of $143K. However, it is important to note that sales tax revenues for
2022 were significantly increased, approximately 27% higher than 2021 revenues. A major
influence on the elevated revenue in 2021 was a large-scale construction project. The sales tax
revenue of 2022 also reflected an above average bump in automobile and recreational vehicle
revenues.
Sales tax revenue for 2023 was lower than 2022 revenues by approximately 3%, or $887K. When
reviewing 2023 activity, the categories of construction, automobile and recreational vehicle tax
reduced from 2022 levels. As noted above a large-scale construction project significantly impacted
2022 receipts, contributing approximately $2.5M in tax revenues. Construction sales tax revenue
for 2023 bettered 2022 revenues when the large-scale construction project’s tax is excluded by
approximately $550K.
Property tax, an important revenue as it not easily impacted by the economy, was $695K higher
than 2022. This increased revenue was the result of new construction assessed value added to the
City’s tax rolls during 2022. Washington state legislation allows for an annual one percent (1%)
increase in levy amount. The City Council declined this increase for 2023 collections, instead
banking the value for future assessment when, or if, determined prudent.
Business and occupation taxes, otherwise known as utility taxes, increased $624K over 2022 totals,
or 5%. The City receives utility taxes from providers of electric, natural gas, cable television,
telephone, water and wastewater, ambulance and stormwater service providers. Revenues can be
affected by growth in customer accounts, fluctuation in annual billed consumption and rate
changes from year to year. In 2023, all categories of utility tax increased over 2022 revenues with
the exclusion of cable television and electric service. Electric utility tax revenue accounts for
nearly half of all utility taxes received on a given year. Compared to biennial budget value, 53.6%
of budget was received in 2023.
The City’s real estate excise tax revenues of 2023 declined by $370K, a 12% reduction from the
prior year. Real estate excise tax is a product of residential and commercial property sales. As the
cost of borrowing, and specifically interest rates associated with real property acquisition has
increased with inflation, sales slowed as compared to prior years. Residential permit values were
lower in 2023 as compared with 2022, by 12%. When comparing issuance of single -family
dwelling units (SFDU) by quarter, a trend emerges. Through the first half of 2023, permitting
related to SFDU were underperforming 2022 by 37%. However, quarter three of 2023 was three
percent (3%) increased over the same time period of the prior year. The final quarter of 2023
reflecting an improvement over 2022 count by 122%.
While a negative variable where development was concerned, interest rate escalation afforded the
City the opportunity to earn increased interest revenue as compared to 2022. Interest income in
2023 was approximately $846K greater, or a 23% increase.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
In 2023, revenues related to subscription-based technology agreements (SBITA) were recognized
for the first year as directed by an accounting pronouncement of the governmental accounting
standards board, No. 96. The associated general revenue reflected on the Statement of Activities
was $2.2M in 2023.
Expenses: In 2023, as part of the 2023/2024 biennial budget, the City significantly increased
staffing. Nearly every operational fund added permanent staff positions. While growing pressure
on City services was the theme of these additions, demands related to this growth were created by
various catalysts. Below is an outline of the significant changes.
• Animal control services, and an associated shelter facility, are provided to the Tri-Cities
region by way of the Tri-Cities Animal Control Authority (TCACA). This authority is the
product of an interlocal agreement between the Cities of Kennewick, Richland and Pasco.
Historically, services were provided based on an agreement with a third-party contractor.
During 2022, following concerns related to adequacy of services provided, the City
assumed operational control of the TCACA. When preparing the 2023/2024 biennial
budget and reflective of this permanent change, 20 positions were added to staff the
Authority. The associated increase in cost, $2.4M, is in the natural and economic category
of expenses.
• The City successfully pursued a Staffing for Adequate Fire and Emergency Response
(SAFER) grant from FEMA. Based on this grant, 15 firefighter/paramedic positions were
added to the fire department. The new staffing is spread between the general fund,
supporting fire suppression and prevention and the ambulance fund. Also reflected in
public safety expenses is the addition of 14 police department positions. The positions were
added in response to a comprehensive police services strategic plan. Additionally,
beginning in 2023, the City served as a satellite site for the State of Washington Basic Law
Enforcement Academy (BLEA). 2023 was the inaugural year for regional academy sites.
As a result of this agreement, the City received revenue to offset associated labor expenses
for academy instruction and operations. Municipal Court staffing grew by two positions.
One of these positions, a Community Resource Coordinator, was funded by a Community
Safety Unit Justice Assistance Grant. Overall, public safety labor costs increased by
approximately $5.5M.
• A Parks and Facilities Comprehensive Plan was completed, outlining needed changes
including the addition of staff. In 2023 – 2024 biennium, 9 staff were added to this end.
• Routinely, the City analyzes utility revenue requirements. As part of the most recent
analysis for water and sewer utility services, employee additions were programmed.
Reflective of the plan and growing demand for City services, the Water/Sewer Utility Fund
added 14 staff positions. The resulting increase in labor expenses in 2023 was $1.2M.
• Community and economic development, added four positions to keep pace with
inspections, permitting, and planning service needs. Increasing natural and economic
expenses by approximately $655K over 2022 expenses.
• Other administrative service functions within City departments included the establishment
of an additional 12 positions. These positions added approximately $2.6M additional
expenses as reflected in General Government function category.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
GOVERNMENTAL ACTIVITIES – REVENUES BY SOURCE
2023 2022 2023 2022 2023 2022
REVENUES
Program revenues:
Charges for Services 34,503,562$ 34,402,718$ 39,629,165$ 35,317,562$ 74,132,727$ 69,720,280$
Operating Grants and Contributions 9,956,429 4,379,260 119,676 100,000 10,076,105 4,479,260
Capital Grants and Contributions 42,565,683 18,066,589 10,646,929 7,041,929 53,212,612 25,108,518
General revenues:
Property Taxes 12,757,331 11,856,936 - - 12,757,331 11,856,936
Other taxes 43,727,220 43,835,973 - - 43,727,220 43,835,973
Intergovernmental 3,926,008 3,540,932 - 119,274 3,926,008 3,660,206
Investment income and miscellaneous 6,223,696 3,644,794 1,153,052 358,236 7,376,748 4,003,030
Total revenues 153,659,929 119,727,202 51,548,822 42,937,001 205,208,751 162,664,203
EXPENSES
Governmental activities:
General Government 19,101,507 35,367,549 - - 19,101,507 35,367,549
Public Safety 44,300,631 15,845,139 - - 44,300,631 15,845,139
Cultural & Recreation 9,342,736 8,217,043 - - 9,342,736 8,217,043
Natural & Economic 13,321,390 11,907,078 - - 13,321,390 11,907,078
Transportation 18,968,469 22,609,115 - - 18,968,469 22,609,115
Interest on long term debt 1,736,837 1,482,863 - - 1,736,837 1,482,863
Business-type activities:
Water - - 14,189,657 11,841,780 14,189,657 11,841,780
Irrigation - - 2,747,433 2,077,463 2,747,433 2,077,463
Sewer - - 11,316,827 10,429,323 11,316,827 10,429,323
PW Reuse Facility - - 5,008,160 5,027,225 5,008,160 5,027,225
Storm Water - - 2,602,995 2,216,329 2,602,995 2,216,329
Total expenses 106,771,570 95,428,786 35,865,072 31,592,120 142,636,642 127,020,906
Change in net position before special
items and transfers 46,888,359 24,298,416 15,683,750 11,344,881 62,572,109 35,643,297
Special Item
Sale of asset (46,070) 105,943 92,565 74,059 46,495 180,002
Prior Period Adjustment 2,835,108 117,681 (494,108) (11,998) 2,341,000 105,683
Transfers (5,915,111) (2,250,741) 5,915,111 2,250,741 - (0)
Change in net position 43,762,286 22,271,299 21,197,318 13,657,683 64,959,604 35,928,982
Total net position - beginning 389,911,139 365,557,460 245,978,921 232,007,914 635,890,060 597,565,374
Total net position - ending 433,673,425$ 387,828,759$ 267,176,239$ 245,665,597$ 700,849,664$ 633,494,356$
City of Pasco
Changes in Net Position
Governmental Activities Business-type Activities Total
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
GOVERNMENTAL ACTIVITIES – EXPENSES AND PROGRAM REVENE
Business-Type Activities:
Business-type activities of 2023 contributed to the City’s net position by $18.7M, or an increase
of 8%. Of the government-wide increase in net position in 2023, business-type activities growth
accounted for 31% of the net position increase. Key elements of the current year increase in net
position and changes as compared to the prior year follow.
Charges for services contribute most significantly to business-type revenues. In 2023, charges for
services revenues increased by approximately, $4.3M, or 12%. Only one category of services,
irrigation, recorded lower revenue. In 2022, irrigation utility recorded water rights fees of $112K.
No water rights fees were collected in 2023 which accounted for the decrease.
The City routinely performs revenue requirement analysis. At times, these studies indicate needed
rate amendments. Based on a 2021 review, a series of annual rate increases were approved. The
first increase occurred in 2022. Following the approved changes, in 2023, rate increases became
effective in water (6.5%) and sewer (4%). The series of approved rate increases are planned
through 2026. Also increasing charges for services revenue was an increase to billings for
contractual work completed to benefit the Process Water Reuse Facility customers.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Operating expenses increased by eight percent. This increase, 21% greater than 2022 labor
expenses, was primarily the result of staffing additions outlined above. Expenses associated with
supplies and services also increased by approximately seven percent over 2022. Cost for chemicals
purchased in 2023 increased by $240K over 2022. For service expenses, tax expenses and vehicle
related costs were notable increases for 2023.
Transfers between the business-type and governmental activities were elevated over 2022. This
increase is associated with support provided by other City funds for capital project efforts
undertaken in 2023.
Similar to governmental activities, interest income earnings in 2023 for business-type activities
improved as compared to 2022. The added revenue for 2023 was an increase of nearly $612K.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
UTILITY ACTIVITIES – EXPENSES AND PROGRAM REVENUES COMPARISON
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance
related legal requirements. The focus of the City’s governmental funds is to provide information
on near-term inflows, outflows and balances of spendable resources.
Major Governmental Funds.
The General Fund is the chief operating fund of the City of Pasco. The services provided by the
General Fund are those that citizens may typically view as government services. They include
police and fire protection, parks and recreation programs, issuance of building permits and
community wide code enforcement, municipal court operations, and the functions of the Council
and administrative services of City government.
Activity of 2023 resulted in a fund balance increase of $175,126 which significantly less from
2022. In comparison, 2022 General Fund activities resulted in a $6.37 million increase. Revenues
in 2023 increased by 1.92%, or $1.35M. Conversely, expenditures for 2023 increased by
approximately $14 million, or 22.21% over 2022 totals. In addition to revenues and expenditures,
the General Fund receives transfers from other funds, while also transferring money to other funds.
The net impact of these interfund transfers was $11.49M, an increase from 2022 activity by 229%.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
The transfers out in 2023 were primarily a result of capital project funding. In 2023, the City issued
bonds, receiving proceeds of $12.3 million reported as other financing sources.
Taxes are the primary source of revenue for the General Fund, supplying 72.3% of all fund revenue
in 2023. Property taxes increased by $695K primarily due to new residential and commercial
construction. The City is legally entitled to increase its levy annually by one percent. However, in
2022, City Council declined to increase the levy for tax collections of 2023. Instead, this capacity
was banked for recapture in a future year. Sales tax revenue remained strong in 2023 but resulted
in less revenue as compared to 2022. The primary cause of decreased receipts of $1.12 million was
the conclusion of a large-scale construction project. In 2022, the construction sales tax for this
project accounted for half of all construction sales tax revenue of the year. Exclusive the effect of
the large construction project sales tax, retail sales tax improved by three percent as compared to
2022. Utility tax in 2023 was 5.1% greater, approximately an additional $630K, over the revenue
of 2022. The City receives other tax revenues, most notably gambling taxes. Other tax revenue
increased by 6%, or $80K, in 2023.
Other categories of General Fund revenue activity for 2023 reflected reductions in charges for
services ($-586K) and fines and penalties ($-90K) and increases in licenses and permits ($228K),
intergovernmental ($613K), and miscellaneous ($1M). The increase in miscellaneous revenue was
significantly impacted be improved interest rate earnings for excess cash in a local government
investment pool.
General fund operating expenses increased by $11.1 million, or 19.3%. The cost increase in dollars
spent was reflected in public safety category ($4.31M), general government ($4.90M), culture and
community ($1.05M), natural and economic environment ($0.64M) and transportation ($0.2M).
Approximately, fifteen percent (15%) of this increase was the product of addition of staffing in
various City departments, including police, fire, parks and recreation and community development.
The increased expenditures are expressed in all functional expenses, except natural & economic
environment. Inflation impacted City expenditures across functions both in the cost of supplies
and services. Notable areas of impact for supplies purchases include the cost of non-capital tools,
equipment, and technology. Services related to general government software maintenance cost
increased by $719K. Natural and economic expenses increased approximately $1 million due to
an increase in the cost of animal control services. Public safety services cost increased nearly $1
million, approximately half this escalation was associated with vehicle leases and City
participation in the Criminal Justice Training Center program. The City amended insurance
coverage resulting in premium increases to all functions. The impact on net position was $670K
greater than in 2022. Capital spending increased in 2023 with the purchase of technology
infrastructure.
Budgetary demands on the General fund as the primary operational fund for City services are
many. As such, the fund is monitored closely to analyze actual demands as compared to budgetary
approvals by Council. As described in Note 1 in the Notes to the Financial Statements, this fund
is budgeted in accordance with Washington State law, as well as City policy to assure budgetary
amendments are appropriately administered. A schedule of Revenues, Expenditures and C hanges
in Net Position “Budget to Actual” comparison is provided within the Annual Comprehensive
Financial Report, to present comparisons between actual revenues and expenditures and the
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
original and amended budgets. Following are major amendments to the General fund’s biennial
budget during 2023:
• To appropriate for an increase in investment income in the amount of $700,000
• To appropriate unbudgeted and unanticipated revenue and associated expenditures:
o Grant for municipal court community program, $260,950.
o Grant for improvements at Pasco Specialty Kitchen, a commercial kitchen business
incubator operated by the City, $500,000.
o Bond proceeds to support improvements for general government facilities
including the municipal pool facility and animal control annex, $3.7 million.
• To appropriate additional expenditures for potential need for subsidies to support special
revenue funds, including:
o Stadium ($645K) to provide debt service support,
o Community Development Block Grant ($250K),
o Senior Center ($218K) as revenues do not support expenditures,
o Marina Funds ($175K) for capital improvement work
• To appropriate for programs new to City operational control, including:
o Pasco Specialty Kitchen ($354K)
o Pasco Farmers’ Market ($248K)
o Downtown community events ($63)
• To appropriate for anticipated operational budgetary needs, including;
o Vehicle leases, $1.5M
o Seasonal staffing for facilities maintenance, $572K
o Animal Control Facility participation cost, $230K
o Completion of software conversion in 2023. Originally, estimated to be completed
with cost recognized in 2022.
At the conclusion of 2023, General fund revenues (excluding beginning fund balance) were 48.7%
of the amended biennial budget for 2023/2024. Actual expenditures in the General fund for the
biennium (excluding ending fund balance) were 43.9% of amended biennial budget.
The 2023/2024 budget planned for issuance of a bond for improvements in the Broadmoor Area
of town related to transportation infrastructure improvements in the amount of $30M. This debt
issuance, and the associated capital improvements, did not occur in 2023.
Revenues have been influenced in various categories by the cost of borrowing. The largest budget-
actual variance is in tax revenues, at $797K below mid-biennium budget comparison. Construction
sales tax is slightly behind expectation as compared to large scale projects anticipated to occur
most likely influenced by cost of borrowing in 2023 and higher interest rates. Like pressures on
construction and resulting delay in construction sales tax, building permits are behind mid-
biennium expectations by approximately half a million dollars. Intergovernmental revenues are
slightly delayed, represented by a variance of $185K. This shortfall is primarily related to lower
state shared revenue that is a product of real estate excise tax. Plan check fees, recorded in charges
for services, is under mid-biennium expectation by $570K.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Where revenues are not associated with construction, actual revenue recognition exceeds mid
biennium budgetary expectations. Charges for services, excluding plan check fees, reflects revenue
ahead of expectation by $776K. Miscellaneous revenues are exceeding mid-biennium budget by
$1.2 million, primarily related to investment income and reimbursement for expenditures incurred
in administration of a basic law enforcement academy.
A component of biennial budgeting is the extended budget time frame. Considering this broad time
frame, yearend spending may outpace half the biennium. Where current expenditures are
concerned, the functions of cultural and community activities and natural and economic
environment are exceeding a mathematical calculation of half the biennium. Natural and Economic
Environment function is outpacing mid-biennium expectation by $1.05M, or 62.4% of total
amended budget as compared to the full biennium. The overage is reflected in one category of
spending, organizational services and related to animal control shelter cost of construction that is
passed through to the City. Culture and Community Activities is very slightly over mid-biennium
budget by $125K, or 50.9%. Interest expense is higher the first year of the biennium, by $187K.
In the second year of the biennium, interest is reduced based on the prior year’s retirement of
principal.
Principal payments are under budget, only reaching 30% of the biennial budget. This
underspending is related to delay of bond issuance for transportation improvements planned in the
biennium. Related to this delay transfers out of the General fund are delayed as well, only
accounting for 24.6% of budget.
The largest budget-actual dollar variance in expenditures of $2.19M as public safety capital item.
As reflected in the ACFR, expenditures for public safety function was 52.9% of biennial budget
total. This overage is related to recognition of leases in accordance with GASB 87, that were not
budgeted.
American Rescue Plan Act Fund (ARPA) accounts for activity related to federal funds received
as part of the Coronavirus State and Local Fiscal Recovery Funds. At the end of 2022, the fund
balance was $113K, a reflection of interest earnings on the grant proceeds. Unearned revenue
totaled $11.8 million. Activity during 2023 reduced the unearned revenue to $5.4M, using $6.4
million. Funds were used toward eligible projects and programs, including water utility system
capital improvements ($5.9M), improvements at the Pasco Specialty Kitchen ($265K), resource
navigator program spending to support emergency services ($150K), and efforts for other
programs of smaller nature plus program administration ($85K). Included in the $85K, are start-
up costs for a project taking place in 2024 that is anticipated to complete ARPA spend down. This
project undertakes remodel of a community center located in a historical section of town. The
facility serves as a location for an early childhood educational program as well as youth enrichment
provided by the local YMCA organization. Improvements are anticipated to combine use of $2M
in ARPA funds with federal and state grants of nearly $4M.
The Construction Fund accounts for all City capital improvements except those completed and
funded for proprietary activities. A prior period adjustment in the amount of $451K was completed
reducing the beginning fund balance. This prior period adjustment was necessary to correct project
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
coding for work on the Lewis Street Overpass project. Expenses in 2022 were erroneously charged
to the Water/Sewer Utility Fund. A deficit fund balance of $1.9M is attributable to the Construction
Fund, the result of project spending that outpaced funding in the current period. Available support
is being identified based on reallocation during capital improvement plan analysis and pending
grant applications.
Intergovernmental revenues from both City funds and external grants and loans are the primary
source of project funding. In 2023, the fund recorded $13.8M from state and federal sources,
approximately $2.7M more than recorded in 2022. The other major funding source interfund
transfers was $22.7M. Approximately, twice as great as 2022 totals. Funds are received primarily
as a reimbursement for project spending.
In 2023, expenditures of $38.1 million for 28 projects were recorded in the construction fund.
Following are some of the major projects accounted for in the Construction fund in 2023:
• Continued work on the Lewis Street Overpass Project in the amount of $10.5M. A long-
time priority of Councils, community members, and the business community this project
in the heart of downtown Pasco will replace an underpass constructed in 1937 to bypass
the BNSF railyard. Replacement of the structure will enhance connectivity through
downtown Pasco it serves as a connector to a primary east-west corridor.
• Completion of Fire Station 85. Construction for this fire station and accompanying site
improvements started in 2022. 2023 expenditures were $7.75M. This project adds a fire
station in the expanding, northwest section of town to support emergency medical
response.
• Various transportation improvement projects thorough the City with expenditures of
$14.8M. Most notably.
o Signal improvements city-wide of $4.5M.
o Overlay improvements on Court Street, a major east-west corridor, of $3.2M.
o A collaborative effort between the City, Port of Pasco and Columbia Basin College
resulted in widening of Argent Road. Improvement includes expansion to four
lanes, new curbing and gutter system with stormwater collection capacity, irrigation
and illumination. This roadway serves as a gateway to the City as it is located
adjacent to the Tri-Cities Airport. Expenditures in 2023 were $2.3 million.
o Design and construction efforts to improve and create infrastructure in the
Broadmoor Area of the City at a cost of $2.7M, including improvements to the I-
182 and Broadmoor Interchange by the installation of a new loop off-ramp and
supporting roundabout. The project is identified as one of many to be ultimately
funded by creation of a Tax Increment Financing Area in 2022.
• Supportive of community recreational opportunities capital expenditures in 2023 include
improvements at Gesa Stadium ($1.2M), creation of the A Street Sports Complex ($1.6M)
and improvements at Schlagel Park Boating Facilities ($1.4M).
Proprietary Funds. Reporting of activity in the City of Pasco enterprise funds mirrors the
information found in the government-wide financial statements for business-type activities. The
activity of the Water/Sewer Utility (Utility), a major fund, is separately stated from that of the
internal service funds when reported at the fund level.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
While the net position of the Utility Fund increased from 2022 to 2023, unrestricted net position
of the Utility fund at the end of 2023 was significantly lower than the prior year end, equaling
$14.5M. This amount is a decrease of $19.4M. To help assess the impact of changing financial
numbers, often the value of working capital ratio is compared. Working capital reflects the value
of current assets minus current liabilities. It is a measure of liquidity for the utility to meet its short-
term obligations.
At the end of 2023, the Utility is well positioned as it has current assets of $96.8M available to
meet its current liability obligations of $21.5M, resulting in working capital of $75.3M, or a ratio
of current assets 4.50 times greater than current liabilities. At the end of 2022, the working capital
ratio calculation equaled 4.05. This change is primarily the result of activity related to capital
improvements in the form of receivable loan reimbursements for spending that occurred in 2023
and cash account balances set aside for planned capital improvements. The Utility Fund benefits
from the use of low interest loans as they are a lower cost option than revenue bond debt. Also
occurring in 2023 was the issuance of a revenue bond to support efforts to keep pace with needed
capital renewal and replacement, as well as complete projects that allow for system expansion.
The increase in current assets is partially the result of connection type fees collected with the
addition of new service extensions. These fees are charged to new utility system service
connections and reflect a buy-in to the investment made in the utility infrastructure over the years.
They are available for use for capital infrastructure improvements only. The debt service coverage
ration decreased from 3.43 in 2022 to 1.88 in 2023 mainly due to a $3.7M increase in debt service
payments.
Current liabilities increased by $5.3M as compared to year -end 2022. Primarily, this increase is
associated with outstanding accounts payable. Reflective of the City’s work on capital
improvements, outstanding payments related to construction projects were outstanding at year end
2023. With the assumption of new debt in the form of low-interest loans and bonds, new debt
service payable in 2023 is reflected in the balance of current liabilities at 2023 yearend, increasing
over 2022 by approximately $1M.
The Utility Fund operating revenue of $39.6M reflects an increase of 12 percent over 2022
revenues. This increase was the result of programmed rate increases in some of the utilities and
growth in customer base across all utility systems. Operating expenses totaled $31.6M. This value
represents an 8% increase over 2022. Water and sewer utility rates were evaluated in 2021. As part
of that effort, there are pre-planned rate changes over the years of 2023 – 2026. Water rates
increase by 6.5% in 2023 and 2024. Then, for the 2025-2026 biennium anticipated rate increases
of 5% annually is approved. For the sewer utility, rates are planned to increase 4% per annum from
2024 through 2026. Operating net income for 2023 increased when compared to 2022 net results.
While the utility fund recognized increases in operating expenses by 8%, operational revenues
improved by 12%. Depreciation expense was level between the two years. The remaining
operating expenses increases by percentage change over 2022 were in labor expenses (21%),
supplies (7%) and services (7%). Increase in labor expense was higher as a result of staffing
additions as well as a labor rate increase. Supplies expense was increased based on cost of
chemicals. The increase in services was influenced by inflationary pressure on vehicle purchases.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Non-Operating activity reduced net position by an amount of $1.2M. The primary affect is the
payment of debt service in the form of interest expense on outstanding loans and bonds. The utility
recognized interest income and minor revenue activity, like rent revenues and sales of assets. For
2023, a higher rate of return on short term investments benefitted the utility by increasing interest
income by $760K over last year’s interest earnings.
Capital contributions to the fund for year 2023 amounted to $8.2M. These contributions are tied
to service area growth and, as such, must be spent toward capital improvements that enhance utility
capacity for service. In addition to revenues received and dedicated to capital expansion, the need
for infrastructure renewal and replacement and improvements to increase a growing population
require that City staff seek low-interest and grant funding opportunities where possible.
Acquisition of funding sources with reduced borrowing cost benefit rate payers. In 2023, the
Water/Sewer Utility Fund received loan proceeds of nearly $33M to support capital projects from
low-interest state or federal funding programs. While rate revenue is necessary to pay associated
debt service, lower interest expense lessens the rate impact.
In 2023, expenditures of $58.2 million were recorded against 29 projects in the Water/Sewer
Utility Fund. To manage many large-scale capital projects, the Water/Sewer Utility Fund has
programed a phased approach around numerous important projects. Following are some of the
major projects accounted for in 2023.
• PWRF Pretreatment Improvements (Phase 2) Winter Storage recorded construction
expenditures of $9.3M. This project will construct three lined ponds to provide an
additional 330 million gallons of winter storage capacity for process wastewater
from existing and known future industrial food processors.
• The Reservoir Storage Tank - Zone 3, started in a previous year, added construction
expenses of $8.8M. This project includes design and construction of a new 3.5-
million-gallon water storage tank in Pressure Zone 3. The project creates an
elevated skirted tank and extension of an existing 24-inch waterline to the tank site.
• Expansion of sewer service in a portion of the City’s urban growth area began in
2022 with the formation of a local improvement district (LID). In 2023, additional
construction expenditures of $7.7M were completed. Included in the project is the
construction of a new sanitary sewer lift station, force main and trunk mains. A
bond anticipation note was issued in 2024. The bond anticipation note will mature
on September 1, 2025 and be replaced by the issuance of bonds. Upon completion
of improvements and confirmation of the final assessment roll for LID 152, a
repayment plan will be established and assigned to properties benefiting from the
improvements.
• Started in a prior period, the Wastewater Treatment Plant (WWTP) Improvements
(Phase 2) project continued in 2023 with expenditures of $5.2M. This project was
recommended by the WWTP Facility Plan. This phase focuses on solids treatment
and water disinfection, as well as completion of outfall replacement.
• Efforts on West Pasco Water Treatment Plant Expansion (Phase 2) project
recognized expenditures of $5.2M in 2023. This project will provide the necessary
improvements to increase treatment capacity at the West Pasco Water Treatment
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Plant (WPWTP) to 12 million gallons per day. To achieve firm capacity at
12MGD, three phases of projects are needed.
Capital Asset and Debt Administration
Financial activity for capital assets is recorded in the Construction Fund for governmental
activities. Business-type capital expenditures are reflected in the Water/Sewer Utility Fund or
internal service funds. Overall, the value of capital assets for governmental activities increased
by $55.9M due to increases in construction work in progress and infrastructure. Similarly, the
value of capital assets for business type activities increased by $57.2M mainly due to increase in
construction work in progress. As reflected in the increase in debt and increase in grant revenue,
there are multiple capital projects in progress during 2023.
Below is a summary of capital asset values at the close of 2023 as compared to last year’s end.
Highlights of significant capital projects undertaken in 2023, and their associated spending, are
included in the Construction Fund and Proprietary Funds sections of this analysis.
Additional information on the City of Pasco’s capital assets can be found in Note 5.
Long-term Debt. At the end of 2023, the City of Pasco had total outstanding debt of $190.1M. Of
this amount, $34.6M is debt backed by the full faith and credit of the government. The business-
type debt total of $147.5M is composed of $69.8M of bonds secured primarily by specified revenue
resources (e.g., revenue bonds). The remaining business-type debt, $73.9M is composed of low
interest loans, namely from State of Washington sponsored programs including the Public Works
Board Loan, the Department of Health, and the Department of Ecology. The business -type
activities also have an outstanding Hanford Area Economic Investment Fund (HAEIF) loan for
improvements at the reuse facility.
Additional information on the City of Pasco’s long-term liabilities can be found in Note 8.
2023 2022 2023 2022 2023 2022
Lease asset 3,035,991$ 1,953,270$ - $ - $ 3,035,991 1,953,270
Subscription Based IT 1,421,227 - 1,421,227 -
Machinery and equipment 11,506,484 9,659,463 10,091,322 9,402,127 21,597,806 19,061,590
Land 26,505,124 25,789,159 4,875,403 4,596,533 31,380,527 30,385,692
Buildings and structures 49,658,482 49,040,165 59,731,339 61,689,009 109,389,821 110,729,174
Infrastructure 193,558,783 176,101,154 143,915,347 142,969,899 337,474,130 319,071,053
Other improvements 8,234,896 8,519,885 515,480 533,222 8,750,376 9,053,107
Construction work in progress 66,650,283 33,632,348 102,442,402 45,213,707 169,092,685 78,846,055
Capital assets, net 360,571,270 304,695,444 321,571,293 264,404,497 682,142,563 569,099,941
Governmental Activities Business-type Activities Total
City of Pasco
Comparative Statement of Capital Assets
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Economic Factors and Next Year’s Budgets and Rates
As previously mentioned, the City adopts a biennial budget. The close of the year ended December
31, 2023, includes activity mid-way through the biennial budget cycle. December 31, 2024 is the
end of the biennium. As required by the Revised Code of Washington, the City performed a mid -
biennium review including the identification and completion of Council approved amendments at
the end of 2023.
Preparatory goal setting and fund analysis is currently underway for completion of the 2025/2026
biennial budget. There are many factors that may affect the financial status of the City’s activities
in the coming years, including:
• Continued inflationary pressure tied to economic factors outside the City’s control are a
concern. As experienced in 2023, inflation decreased the City’s purchasing power for both
supplies and services. Also impactful was the effect of inflated interest rates making the
cost of borrowing greater. Related uncertainty in the economy of the nation potentially
slows economic development within the City.
• Regardless of this uncertainty, demand for housing and related City services, is expected
to persist. Based on population demands, decisions made in the prior few years will
precipitate growth. Significant to this expectation is the expansion of the City’s urban
growth area and the establishment of a Tax Increment Financing Area. Infrastructure
improvements within the Tax Increment Financing area are expected open a new, large
section of town for development and service delivery for governmental and business-type
activities.
• In addition to spending tied to expanding infrastructure needs to serve a growing citizenry,
evaluation of necessary renewal and replacement of existing City infrastructure is crucial
and will have a financial impact on the City.
To assist in balancing community needs with budgetary demands, the City has created, or is in the
process of completing various facilities, program and revenue assessments.
• Annual renewal of the six-year Capital Improvement Plan (CIP)
• Various Master Plans, including,
o Broadmoor Area,
o Downtown,
o Parks, Recreation and Open Space
o Housing Action and Implementation Plan
2023 2022 2023 2022 2023 2022
Loans & Notes 3,211,000$ 3,401,000$ 69,861,274$ 38,599,262$ 73,072,274$ 42,000,262$
General Obligation Bonds 34,665,000 23,010,000 - 34,665,000 23,010,000
Revenue Bonds - 73,930,000 46,920,000 73,930,000 46,920,000
Premium 4,699,754 3,884,541 3,732,324 2,356,662 8,432,078 6,241,203
42,575,754 30,295,541 147,523,598 87,875,924 190,099,352 118,171,465
Governmental Activities Business-type Activities Total
City of Pasco
Comparative Statement of Bonds and Notes
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
o Preparation of Major Comprehensive Plan Update
• In 2023, the City initiated development of a General Fund Forecast Model. This plan
evaluates a ten-year planning horizon. This analysis will result in calculation of baseline
results for provision of existing City services and programs. Using the resulting data, long-
range decision making will be better informed.
• In 2024, the City will begin creation of its periodic update to the Comprehensive Plan in
accordance with the Washington State Growth Management Act.
• Review of revenue and fee requirements to support capital and operational needs.
A copy of City of Pasco’s most recent 2023/2024 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 2023 Annual Comprehensive Financial Report
BASIC FINANCIAL STATEMENTS
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Component Unit
Governmental
Activities
Business-type
Activities Total
Pasco Public
Facility District
ASSETS
Current assets:
Cash and cash equivalents 80,516,398 31,586,227 112,102,625 3,424,864
Restricted Cash:
Program, grant, donation 6,166,825 - 6,166,825 -
Customer deposits 972,349 816,172 1,788,521 -
Capital Development - 16,628,070 16,628,070 -
Permit and Plan Check 3,364,822 - 3,364,822 -
Unspent bond proceeds 5,679,223 24,647,393 30,326,616 -
Debt Service 237,564 755,007 992,571 -
Asset retirement reserve - 10,832 10,832 -
Investments 3,294,174 1,470,497 4,764,671 -
Receivables:
Taxes 6,759,989 - 6,759,989 1,011,598
Customers (net of allowance)3,847,486 3,554,339 7,401,825 -
Grants 2,734,915 359,189 3,094,104 -
Due from other governments 1,410,218 - 1,410,218 -
Special assessment 33,221
Loans 462,146 23,457,145 23,919,291 -
Leases 507,458 103,082 610,540 -
Internal Balances 2,286,751 (2,286,751) - -
Inventories - 422,586 422,586 -
Total current assets 118,273,539 101,523,788 219,797,327 4,436,462
Noncurrent assets:
Restricted Cash:
Cemetery Endowment 580,526 - 580,526 -
Debt covenants - 1,932,966 1,932,966 -
Receivable:
Special assessment 623,636 2,279,899 2,903,535 -
Leases 2,782,465 108,899 2,891,364 -
Net Pension Asset 22,843,343 1,524,072 24,367,415 -
Net OPEB Asset 4,164,327 - 4,164,327 -
Joint Ventures 1,589,786 - 1,589,786 -
Capital assets not being depreciated:
Land 26,505,124 4,875,403 31,380,527 -
Construction work in progress 66,650,283 102,442,402 169,092,685 -
Capital assets net of accumulated
depreciation:
Right to use leases 3,035,991 - 3,035,991 -
Subscription based IT Arrangements 1,421,227 - 1,421,227
Buildings and structures 49,658,482 59,731,339 109,389,821 -
Other improvements 8,234,896 515,480 8,750,376 -
Machinery and equipment 11,506,484 10,091,322 21,597,806 -
Infrastructure 193,558,783 143,915,347 337,474,130 -
Total noncurrent assets 393,155,353 327,417,129 720,572,482 -
Total assets 511,428,892 428,940,917 940,369,809 4,436,462
DEFERRED OUTFLOWS OF
RESOURCES
Deferred Outflow - Pension Related 13,368,329 1,232,612 14,600,941 -
Deferred Outflow - Debt Refunding - 21,679 21,679 -
Total deferred outflows of resources 13,368,329 1,254,291 14,622,620 -
Total assets and deferred outflows of
resources 524,797,221 430,195,208 954,992,429 4,436,462
Statement of Net Position
December 31, 2023
Primary Government
Continued on next page
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Component Unit
Governmental
Activities
Business-type
Activities Total
Pasco Public
Facility District
LIABILITIES
Current liabilities:
Accounts payable 9,236,734 12,051,726 21,288,460 267,179
Leases 1,118,845 - 1,118,845 -
SBITA 703,411 - 703,411 -
Deposits payable from restricted assets 972,349 622,519 1,594,868 -
Accrued interest payable from
restricted assets - 406,702 406,702 -
Compensated absences 3,042,998 379,860 3,422,858 -
Notes and loans payable 190,000 2,846,641 3,036,641 -
Bonds payable 1,470,203 2,752,754 4,222,957 -
Net Pension Liability 458,017 142,936 600,953 -
Total OPEB Liability 526,997 - 526,997 -
Unearned revenue-advance grant 5,818,558 - 5,818,558 -
Total current liabilities 23,538,113 19,203,138 42,741,251 267,179
Noncurrent liabilities:
Net pension liability 1,390,832 515,294 1,906,126 -
Bonds payable 37,894,551 74,909,570 112,804,121 -
Notes & loans payable 3,021,000 67,014,633 70,035,633 -
Compensated absences 954,397 24,139 978,536 -
Total OPEB Liability 6,159,414 - 6,159,414 -
Asset retirement obligation - 10,832 10,832 -
SBITA 687,686 - 687,686 -
Leases 4,628,222 - 4,628,222 -
Total noncurrent liabilities 54,736,103 142,474,468 197,210,571 -
Total liabilities 78,274,216 161,677,606 239,951,822 267,179
DEFERRED INFLOWS OF
RESOURCES
Deferred Inflow - Pension Related 9,278,457 1,093,802 10,372,259 -
Deferred Inflow - leases 3,289,923 211,981 3,501,904 -
Deferred Inflow - OPEB related 191,137 - 191,137 -
Deferred Inflow - Debt Refunding - 35,580 35,580 -
Total deferred inflows of resources 12,759,517 1,341,363 14,100,880 -
Total liabilities and deferred inflows of
resources 91,033,733 163,018,969 254,052,702 267,179
NET POSITION -
Net investment in capital assets 316,190,716 195,379,338 511,570,054 -
Restricted for:-
Capital improvement 9,991,143 16,628,070 26,619,213 -
Cemetery Endowment 580,526 - 580,526 -
Culture and recreation 205,014 - 205,014 -
Debt repayment/guarantee 452,422 2,687,973 3,140,395 -
Economic development 1,413 - 1,413 -
Litter and housing abatement 323,662 - 323,662 -
OPEB 4,164,327 - 4,164,327 -
Opioid and Overdose Response Plan 103,659 - 103,659 -
Park development 3,757,829 - 3,757,829 -
Pensions 22,843,343 1,524,072 24,367,415 -
Permit and plan check fee 3,364,822 - 3,364,822 -
Program, grant, donations 3,440,070 - 3,440,070 -
State Law WAC 2,623,096 - 2,623,096 -
Streets and boulevards 6,969,053 - 6,969,053 -
Unrestricted 58,662,330 50,956,786 109,619,116 4,169,283
Total net position 433,673,425$ 267,176,239$ 700,849,664$ 4,169,283$
Statement of Net Position
December 31, 2023
Primary Government
The notes to financial statements are an integral part of this statement.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Component
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-type
Activities Total
Pasco Public
Facility
District
Primary government:
Governmental activities:
General Government 19,101,507$ 5,222,396$ 434,121$ -$ (13,444,990)$ - $ (13,444,990)$ - $
Public Safety 44,300,631 12,698,498 1,695,334 67,087 (29,839,712) - (29,839,712) -
Transportation 18,968,469 4,066,018 - 42,110,031 27,207,580 - 27,207,580 -
Natural & Economic 13,321,390 10,471,616 7,790,110 - 4,940,336 - 4,940,336 -
Cultural & Community 9,342,736 2,045,034 36,864 388,565 (6,872,273) - (6,872,273) -
Interest on long term debt 1,736,837 - - - (1,736,837) - (1,736,837) -
Total governmental activities 106,771,570 34,503,562 9,956,429 42,565,683 (19,745,896) - (19,745,896) -
Business-type activities:
Water 14,189,657 14,807,765 - 2,688,715 - 3,306,823 3,306,823 -
Irrigation 2,747,433 2,052,504 - 723,237 - 28,308 28,308 -
Sewer 11,316,827 11,789,492 - 6,248,757 - 6,721,422 6,721,422 -
PW Reuse Facility 5,008,160 8,445,856 - 238,533 - 3,676,229 3,676,229 -
Storm Water 2,602,995 2,533,548 119,676 747,687 - 797,916 797,916 -
Total business-type activities 35,865,072 39,629,165 119,676 10,646,929 - 14,530,698 14,530,698 -
Total primary government 142,636,642$ 74,132,727$ 10,076,105$ 53,212,612$ (19,745,896)$ 14,530,698$ (5,215,198)$ -$
Component unit:
Pasco Public Facility District 1,267,485 9,245 - - - - - (1,258,240)
Total component unit 1,267,485 9,245 - - - - - (1,258,240)
12,757,331 - 12,757,331 -
26,191,887 - 26,191,887 5,657,236
12,964,511 - 12,964,511 -
4,570,822 - 4,570,822 -
6,223,696 1,153,052 7,376,748 -
3,926,008 - 3,926,008 -
(46,070) 92,565 46,495 -
(5,915,111) 5,915,111 - -
60,673,074 7,160,728 67,833,802 5,657,236
40,927,178 21,691,426 62,618,604 4,398,996
389,911,139 245,978,921 635,890,060 (229,713)
2,835,108 (494,108) 2,341,000 -
433,673,425$ 267,176,239$ 700,849,664$ 4,169,283$
Net (Expense) Revenue and Changes in Net Position
City of Pasco
Statement of Activities
December 31, 2023
Program Revenues Primary Government
General revenues:
Property taxes
Sales taxes
B&O taxes
Excise taxes
Investment income and miscellaneous
Intergovernmental
Sale of asset
Net position - ending
The notes to financial statements are an integral part of this statement.
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Special Item - Prior Period Adjustment
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
General Fund ARPA Construction
Total
Nonmajor
Funds
Total
Governmental
Funds
ASSETS
Cash and cash equivalents 13,168,205$ 5,383,554$ 5,282,358$ 47,591,169$ 71,425,286$
Restricted Cash
Program, grant, donation 3,405,332 - - 138,397 3,543,729
Customer deposits 435,614 - - 536,735 972,349
Unspent bond proceeds 5,099,103 - - 580,120 5,679,223
Permit and plan check 3,364,822 - - - 3,364,822
Debt service - - - 237,564 237,564
Cemetery endowment - - - 580,526 580,526
Investments 1,320,689 365,724 - 1,282,883 2,969,296
Receivables
Taxes 6,115,060 - - 644,930 6,759,990
Customer (net of allowances)1,990,185 - - 1,857,301 3,847,486
Interfund loans - - - 17,636 17,636
Due from other funds 4,926,893 - - - 4,926,893
Grants 224,991 - 1,912,614 597,310 2,734,915
Leases 262,836 - - 3,027,087 3,289,923
Loans - - - 462,146 462,146
Special assessments - - - 656,857 656,857
Due from other governments 922,556 - 68,875 418,787 1,410,218
Total assets 41,236,286 5,749,278 7,263,847 58,629,448 112,878,859
LIABILITIES
Accounts payable 3,023,488 1,495 4,377,360 1,168,419 8,570,762
Interfund loans payable - - - 17,635 17,635
Pay from restricted assets - Deposits 435,614 - - 536,735 972,349
Due to other funds - - 4,379,493 547,400 4,926,893
Unearned revenue-advance grant - 5,374,534 444,025 - 5,818,559
Total liabilities 3,459,102 5,376,029 9,200,878 2,270,189 20,306,198
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Property Taxes 204,728 - - - 204,728
Leases 262,836 - - 3,027,087 3,289,923
Unavailable revenue-Special assessment - - - 623,636 623,636
Unavailable revenue - Court receivables 720,912 - - - 720,912
Unavailable revenue - Other - - - 601,345 601,345
Total deferred inflows of resources 1,188,476 - - 4,252,068 5,440,544
Total liabilities and deferred inflows of resources 4,647,578 5,376,029 9,200,878 6,522,257 25,746,742
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery perpetual fund - - - 580,526 580,526
Restricted
Capital improvements 5,099,103 - - 10,514,624 15,613,727
Culture & Recreation - - - 205,014 205,014
Debt Guarantee - - - 452,422 452,422
Economic development - - - 1,413 1,413
Litter & housing abatement - - - 323,662 323,662
Opioid and Overdose Response Plan 103,659 - - - 103,659
Park development - - - 3,757,829 3,757,829
Permit & Plan Check Fee 3,364,822 - - - 3,364,822
Program, grant, donation 3,301,673 - - 138,397 3,440,070
Street and boulevard - - - 6,969,053 6,969,053
Committed
Construction projects - - - - -
Landfill claims 407,344 - - - 407,344
Redflex - - - 860,248 860,248
Special revenue funds - 373,250 - 28,147,406 28,520,656
Assigned
Future Project-Community Center 1,230,430 - - - 1,230,430
Unassigned 23,081,676 - (1,937,031) 156,840 21,301,485
Total fund balances (deficits)36,588,707$ 373,250$ (1,937,031)$ 52,107,434$ 87,132,360$
Total liabilities and fund balances (deficits)41,236,285$ 5,749,279$ 7,263,847$ 58,629,691$ 112,879,102$
The notes to financial statements are an integral part of this statement.
City of Pasco
Balance Sheet
Governmental Funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Fund balances of governmental funds 87,132,360
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and are not
reported in the fund financial statements. They are reported in the government-wide
statements, net of accumulated depreciation: 354,746,969
354,746,969
The focus of governmental funds is on short-term financing. Long-term assets are
deferred or not reported in the funds, they consist of the following:
Investment in joint venture 1,589,786
Net pension asset 22,682,506
Net OPEB asset 4,164,327
28,436,619
Internal service funds are used by management to charge the costs of certain
activities to individual funds. These assets and liabilities are included in the
governmental and business-type activities in the statement of net position based on
which activity they predominantly serve. For governmental activities they consist of
the following:
Internal payable representing charges in excess of cost to business-type activities:
prior years 19,113,598
Internal payable representing charges in excess of cost to business-type activities:
current year 476,584
19,590,182
Deferred outflows and inflows of resources related to long-lived assets and liabilities
do not relate to the current period and therefore are not reported in fund financial
statements:
Deferred outflow of resources related to pensions 13,238,250
Deferred inflow of resources related to pensions (9,163,027)
Deferred inflow of resources related to OPEB (191,137)
3,884,086
Long-term liabilities are not due and payable in the current period and are therefore
not reported in the funds. They consist of the following:
General obligation bonds (39,364,754)
Other general government debt (3,211,000)
Net pension liability (1,779,386)
Total OPEB liability (6,686,411)
Compensated absences (3,997,395)
SBITA payable (1,468,821)
Leases payable (5,895,775)
(62,403,542)
2,971,949
Principal reduction in the current year (685,198)
2,286,751
Net position of governmental activities 433,673,425
The notes to financial statements are an integral part of this statement.
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
Because some receivables will not be collected within 60 days after the City’s fiscal year end, they are not
considered “available” revenues in the governmental funds. There is a long-term interfund loan between
governmental Internal Service Funds and Business type fund. Prior period adjustment for interfund loan was
eliminated on the government-wide statements in the prior year. This error in presentation on the
governmentwide statements understated net position as it should have been a receivable.
For Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
General Fund ARPA Construction
Total
Nonmajor
Total Governmental
Funds
REVENUES
Taxes 52,048,758 - - 3,663,759 55,712,517
Licenses and permits 3,156,323 - - 333,989 3,490,312
Intergovernmental 3,755,221 6,447,025 13,801,383 6,408,276 30,411,905
Charges for service 9,966,778 - - 15,554,660 25,521,438
Fines and forfeitures 860,365 - - 203,221 1,063,586
Investment income 1,035,826 259,812 - 1,078,550 2,374,188
Rent and leases 306,476 - - 1,343,090 1,649,566
Miscellaneous 821,592 - 137,750 386,216 1,345,558
Total revenues 71,951,339 6,706,837 13,939,133 28,971,761 121,569,070
EXPENDITURES
Current:
General Government 18,679,396 - 119 - 18,679,515
Public Safety 34,090,522 - 442 12,269,871 46,360,835
Transportation 3,600,075 - 155,698 2,285,625 6,041,398
Natural & Economic Environment 4,752,443 71,226 - 8,397,495 13,221,164
Cultural & Community 7,578,269 - 1,426 767,407 8,347,102
Debt service:
Principal retirement 1,598,938 - - 267,918 1,866,856
Interest 1,231,082 - - 346,694 1,577,776
Debt issue costs 93,831 - - 9,280 103,111
Capital outlay:
General Government 944,536 - 143,634 - 1,088,170
Public Safety 2,351,437 - 7,878,251 115,244 10,344,932
Transportation 8,022 - 24,996,892 167,748 25,172,662
Natural & Economic Environment - - 482,016 311,986 794,002
Cultural & Community 278,096 - 4,493,345 - 4,771,441
Total expenditures 75,206,647 71,226 38,151,823 24,939,268 138,368,964
Excess (deficiency) of revenues over
expenditures (3,255,308) 6,635,611 (24,212,690) 4,032,493 (16,799,894)
OTHER FINANCING SOURCES (USES)
Transfers in 580,494 - 22,727,815 3,036,040 26,344,349
Transfers out (12,070,837) (6,375,798) - (13,812,824) (32,259,459)
Issuance of long-term debt 11,466,000 - - 1,134,000 12,600,000
Premium on bonds issued 880,027 - - 87,036 967,063
Discount on bonds issued (56,183) - - (5,557) (61,740)
Insurance recoveries 149,373 - - 786,766 936,139
SBITA financing 2,228,106 - - - 2,228,106
Total other financing sources (uses)3,176,980 (6,375,798) 22,727,815 (8,774,539) 10,754,458
SPECIAL ITEM
Prior Period Adjustment 253,454 - (451,419) 264,867 66,902
Total special items 253,454 - (451,419) 264,867 66,902
Net change in fund balances 175,126 259,813 (1,936,294) (4,477,179) (5,978,534)
Fund balances - beginning 36,413,581 113,438 (738) 56,584,613 93,110,894
Fund balances - ending 36,588,707$ 373,251$ (1,937,032)$ 52,107,434$ 87,132,360$
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
For the Year Ended December 31, 2023
Net change in fund balances - total government funds (5,978,534)
Amounts reported for governmental activities in the statement of activities are different because:
The issuance and repayment of long-term liabilities are reported as resources and uses, respectively, of
current financial resources in governmental funds. In the statement of net position, however, neither of
these transactions impact net position. Also in governmental funds the effect of premiums or discounts
and similar items 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. The following details the net change in long-term debt as reflected in government-wide reporting:
Proceeds from issuance of bonds (12,600,000)
Capitalization of bond premium on bond issuance (967,063)
Principal repayment 1,135,000
Amortization of premiums/discounts 151,850
(12,280,213)
Certain revenues and expenses in the statement of activities do not provide or use current financial
resources and are therefore not reported as revenues or expenditures in the governmental funds. The
following details those items:
Change in earned revenue reported as deferred inflows in the fund statements (6,208,535)
Change in the City's investment in joint ventures 53,675
Change in the City's net pension liability 137,505
Change in net pension asset (1,567,542)
Change in the City's net pension related deferred outflows 1,918,172
Change in the City's net pension related deferred inflows 724,218
Change in deferred inflow - leases (lessor)1,104,901
Change in lease liability 3,773,998
Change in net OPEB obligation 1,813,530
Change in OPEB asset (681,056)
Change in OPEB deferred inflow/outflows 215,552
Change in compensated absences 380,781
1,665,199
Internal service funds are used by management to charge the cost of certain activities to individual funds.
The net revenue of most of these activities is reported within governmental funds as follows:
Change in net position 476,584
(149,776)
326,808
(685,198)
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 following depicts the changes to
capital assets:
Capital outlays 68,653,932
Depreciation (15,901,979)
Prior period adjustments - expenses should have been capitalized 619,926
Disposal of capital assets, including loss/gain on disposal (313,117)
Right to use - Leases 4,481,848
Amortization of leases (1,082,721)
SBITA 2,228,106
Amortization SBITA (806,879)
57,879,116
Change in net position of governmental activities 40,927,178
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities
Principal reduction for Interfund Loan between Governmental to Business-type
Adjustment for interest revenue received on Interfund Loan between ISF Governmental Fund to Business-Type
fund. Recognized as misc. revenue on Statement of Activities.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Original Final 2023 Actual
Variance to Final
Budget over
(under)
REVENUES
Rent and leases 415,182$ 620,098$ 306,476$ (313,622)$
Taxes 105,691,673 105,691,673 52,048,758 (53,642,915)
Licenses and permits 7,481,532 7,481,532 3,156,323 (4,325,209)
Intergovernmental 7,194,296 7,715,246 3,755,221 (3,960,025)
Charges for service 19,688,841 19,688,841 9,966,778 (9,722,063)
Fines and forfeitures 1,790,529 1,790,529 860,365 (930,164)
Investment income 180,000 880,000 1,035,826 155,826
Miscellaneous 1,233,626 1,288,632 821,592 (467,040)
Interfund loan Rev/Exp 113,201 113,201 - (113,201)
Total revenues 143,788,880 145,269,752 71,951,339 (73,318,413)
EXPENDITURES
Current:
General Government 38,242,325 37,173,183 18,679,396 18,493,787
Public Safety 70,172,474 73,001,618 34,090,522 38,911,096
Transportation 7,585,753 7,327,753 3,600,075 3,727,678
Natural & Economic Environment 6,937,457 7,971,435 4,752,443 3,218,992
Cultural & Community 13,065,077 14,650,500 7,578,269 7,072,231
Total current 136,003,086 140,124,489 68,700,705 71,423,784
Debt service:
Principal retirement 8,202,300 8,202,300 1,598,938 6,603,362
Interest 1,952,408 2,387,658 1,231,082 1,156,576
Debt issue costs - - 93,831 (93,831)
Total debt service 10,154,708 10,589,958 2,923,851 7,666,107
Capital outlay:
General Government 3,234,800 3,616,800 944,536 2,672,264
Public Safety 360,660 360,660 2,351,437 (1,990,777)
Transportation - - 8,022 (8,022)
Cultural & Community - 501,048 278,096 222,952
Total capital outlay 3,595,460 4,478,508 3,582,091 896,417
Total expenditures 149,753,254 155,192,955 75,206,647 79,986,308
Excess (deficiency) of revenues over expenditures (5,964,374) (9,923,203) (3,255,308) 6,667,895
OTHER FINANCING SOURCES (USES)
Transfers in 425,816 925,816 580,494 (345,322)
Transfers out (40,131,302) (49,043,074) (12,070,837) 36,972,237
Issuance of long-term debt 30,371,000 34,071,000 11,466,000 (22,605,000)
Premium on bonds issued - - 880,027 880,027
Discount on bonds issued - - (56,183) (56,183)
Insurance recoveries 6 6 149,373 149,367
SBITA financing - - 2,228,106 2,228,106
Sale of capital assets 5,000,000 5,000,000 - (5,000,000)
Total other financing sources (uses)(4,334,480) (9,046,252) 3,176,980 12,223,232
SPECIAL ITEM
Prior Period Adjustment - - 253,454 253,454
Total special items - - 253,454 253,454
Net change in fund balances (10,298,854) (18,969,455) 175,126 19,144,581
Fund balances - beginning 28,595,133 36,413,669 36,413,581 -
Fund balances - ending 18,296,279$ 17,444,214$ 36,588,707$ 19,144,493$
The notes to financial statements are an integral part of this statement
2023/2024 Biennial Budget Amounts
City of Pasco
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental 199,825$ 199,825$ 6,447,025$ 6,247,200$
Investment income 15,000 15,000 259,812 244,812
Total revenues 214,825 214,825 6,706,837 6,492,012
EXPENDITURES
Current:
Natural & Economic Environment 49,824 49,824 71,226 (21,402)
Total current 49,824 49,824 71,226 (21,402)
Total expenditures 49,824 49,824 71,226 (21,402)
Excess (deficiency) of revenues over
expenditures 165,001 165,001 6,635,611 6,470,610
OTHER FINANCING SOURCES (USES)
Transfers out (150,000) (10,136,984) (6,375,798) 3,761,186
Total other financing sources (uses)(150,000) (10,136,984) (6,375,798) 3,761,186
Net change in fund balances 15,001 (9,971,983) 259,813 10,231,796
Fund balances - beginning 113,438 113,438 113,438 -
Fund balances - ending 128,439$ (9,858,545)$ 373,251$ 10,231,796$
Budgeted Amounts
City of Pasco
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
ARPA
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Water/Sewer Utility
Internal Service
Funds
ASSETS
Current assets:
Cash and cash equivalents 24,831,378$ 15,845,961$
Restricted Cash:
Customer deposits 816,172 -
Unspent bond proceeds 24,647,393 -
Self insured reserve - 2,623,096
Debt service 755,007 -
Asset retirement obligation 10,832 -
Capital development 16,628,070 -
Investments 1,224,939 570,435
Inventory 422,586 -
Receivables:
Customer (net of allowances)3,554,339 -
Interfund loans - 2,286,751
Leases 103,082
Grants 359,189 -
Loans 23,457,145 -
Total current assets 96,810,132 21,326,243
Noncurrent assets:
Special assessments 2,279,899 -
Leases 108,899 -
Debt covenants 1,932,966 -
Net Pension Asset 1,524,073 160,837
Capital assets not being depreciated:
Land 4,875,403 -
Construction in progress 102,442,402 -
Capital assets net of accumulated depreciation:
Buildings and structures 59,731,339 -
Other improvements 515,480 -
Machinery and equipment 7,682,773 8,232,850
Infrastructure 143,915,347 -
Total noncurrent assets 325,008,581 -
Total assets 421,818,713 29,719,930
DEFERRED OUTFLOWS OF RESOURCES
Pension related 1,232,613 130,079
Debt Refunding 21,679 -
Total deferred outflows of resources 1,254,292 130,079
Total assets and deferred outflows of
resources 423,073,005 29,850,009
Business-type
Activities
City of Pasco
Statement of Net Position
Proprietary Funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Water/Sewer Utility
Internal Service
Funds
LIABILITIES
Current liabilities:
Accounts payable 12,037,551 680,147
Interfund loans payable 215,880 -
Pay from restricted assets - Deposits 622,519 -
Accrued interest payable 406,703 -
Compensated absences 379,860 -
Notes & loans payable 2,846,641 -
Net Pension Liability 142,936 21,666
Revenue bonds 2,752,753 -
Total current liabilities 19,404,843 701,813
Noncurrent liabilities:
Compensated absences 24,139 -
Interfund loans payable 2,070,871
Asset retirement obligation 10,832 -
Notes & loans payable 67,014,633 -
Revenue bonds payable (net of premium) 74,909,569 -
Net Pension Liability 515,294 47,797
Total noncurrent liabilities 144,545,338 47,797
Total liabilities 163,950,181 749,610
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Unavailable revenue 150,000 -
Unavailable revenue-Special assessment 2,279,899 -
Unavailable revenue - Other 35,580 -
Unavailable revenue - Lease 211,981
Pension related inflow 1,093,802 115,430
Total deferred inflows of resources 3,771,262 115,430
Total liabilities and deferred inflows of resources 167,721,443 865,040
NET POSITION
Net investment in capital assets 192,970,791 8,232,850
Restricted for:
Capital improvement 16,628,070 -
Debt repayment/guarantee 2,281,269 -
Pensions 1,524,072 160,837
State Law WAC - 2,623,096
Unrestricted 41,947,358 17,968,184
Total net position 255,351,560$ 28,984,967$
9,394,781
264,746,341$
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Net Position
Proprietary Funds
December 31, 2023
Business-type
Activities
Difference between business-type adjustments to
assets and liabilities.
Net position of business-type activities
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Total Enterprise
Funds
Internal Service
Funds
OPERATING REVENUES
Licenses and permits 260,603$ -$
Charges for service 39,365,062 14,252,915
Total operating revenues 39,625,665 14,252,915
OPERATING EXPENSES
Salaries & wages 5,743,785 600,556
Personnel benefits 1,830,372 202,607
Supplies 2,738,326 1,468,005
Services 14,234,780 9,913,617
Depreciation 7,076,466 1,182,117
Total operating expenses 31,623,729 13,366,902
Operating income (loss)8,001,936 886,013
NONOPERATING REVENUES (EXPENSES)
Fines and forfeitures 3,500 -
Investment income 1,009,643 625,063
Miscellaneous 31,038 290,216
Rents and leases 91,021 -
Grant 119,676 -
Insurance Recoveries 21,350 -
Gain (loss) on disposal/sale of asset 92,565 31,650
Interest on long term debt (2,501,958) -
Debt Issue Costs (123,085) -
Total nonoperating revenues (expenses)(1,256,250) 946,929
Income (loss) before contributions and
transfers 6,745,686 1,832,942
Capital contributions 8,216,326 -
Transfers in 5,915,111 -
Transfer Out
Change in net position 20,877,123 1,832,942
Total net position - beginning 234,968,545 27,152,025
Prior Period Adjustment (494,108) -
Total net position - ending 255,351,560$ 28,984,967$
Business-type
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 year ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Water/Sewer
Utilities
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 39,786,478$ 14,252,932$
Payments to employees (8,076,214) (849,922)
Payments to suppliers (13,211,912) (11,233,415)
Net cash provided (used) by operating activities 18,498,352 2,169,595
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating grants 119,676 -
Miscellaneous 31,038 290,216
Rents and leases 91,021 -
Insurance recoveries 21,350 -
Net cash provided (used) by noncapital financing activities 263,085 290,216
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Sale of assets - 129,316
Gain and sale of asset 92,565 -
Acquisition and construction fo capital assets (58,545,740) (2,577,405)
Principal paid on capital debt (5,050,241) -
Interest paid on capital debt (2,625,043) -
Transfers in (out) for capital 5,915,111 -
Special assessment receivable 696,480 -
Interfund loan rec'd & paid (685,198) 685,198
Capital charges 2,197,813 -
Capital grant and contributions proceeds 738,773 -
Bond proceeds received 31,575,031 -
Loan proceeds 23,073,767 -
Net cash provided (used) by capital and related financing activities (2,616,682) (1,762,891)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments 505,838 499,049
Interest on investments 1,009,643 625,063
Net cash provided (used) by investing activities 1,515,481 1,124,112
Net increase (decrease) in cash and cash equivalents 17,660,236 1,821,032
Balances - beginning of year 51,961,582 16,648,025
Balances - end of the year 69,621,818 18,469,057
Reconciliation of operating income (loss) to net cash provided (used) by operating
activities:
Operating Income 8,004,336 885,939
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating
activities:
Depreciation 7,076,466 1,182,116
Loss on disposal - -
Changes in assets and liabilities:
(Increase) decrease in customer receivables 68,249 12
(Increase) decrease in inventories 97,363 -
Increase (decrease) in accounts payable 3,957,359 148,285
Increase (decrease) in accounts payable closure cost 469 -
Increase (decrease) in salaries & benefits payable (59,419) (2,315)
Increase (decrease) in interest payable 187,191 -
(Decrease) increase in accounts customer deposits payable 89,063 -
(Decrease) increase in compensated absences 53,296 -
(Increase) decrease in deferred outflows pensions 14,041 20,831
(Increase) decrease in deferred outflows- debt refunding 4,409 -
Increase (decrease) in pension liability (27,901) (13,595)
Increase (decrease) in pension asset (332,587) (16,605)
Increase (decrease) in deferred inflow unavailabe revenue (484,499) -
Increase (decrease) in deferred inflow pension (149,484) (35,073)
Net cash provided (used) by operating activities 18,498,352$ 2,169,595$
Noncash investing, capital and financing activities
Contribution of capital assets 5,057,141 -
Total noncash investing, capital and financing activities 5,057,141 -
Business-type
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Cash Flows
Proprietary Funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Pension (and Other
Employee Benefit) Trust
Funds Custodial Funds
ASSETS
Cash and cash equivalents 811,338$ 3,424,866$
Receivable
Other governments 1,205,440
Taxes 1,011,598
Special assessments 2,906
Investments at fair value:
Federal agency 2,624
Mutual funds 8,314,893
Total assets 9,131,761 5,641,904
LIABILITIES
Accounts payable 252 504,046
Due to other governments payable - 922,555
Total liabilities 252 1,426,601
NET POSITION
Restricted for:
Pensions 4,460,172 -
Postemployment benefits other than pensions 4,671,337 -
Unrestricted - 4,215,303
Total net position 9,131,509$ 4,215,303$
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Fiduciary Net Position
For year ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Pension (and Other
Employee Benefit) Trust
Funds Custodial Funds
ADDITIONS
Tax collections by other governments 123,869$ 5,657,236$
Fees collected on behalf other agency - 360,194
Intergovernmental grants and other payments - 3,573,127
Investment income 1,388,763 -
Interest 19,548 -
Dividends 136,926 -
Total additions 1,669,106 9,590,557
DEDUCTIONS
Pension benefits 91,409 -
Medical premiums 87,540 -
Services 4,436 312,101
Payments of sales tax to other governments 955,384
Fees remitted to agency 360,194
Capital 3,550,326
Total deductions 183,385 5,178,005 Net increase (decrease) in fiduciary net
position 1,485,721 4,412,552
Net Position -- beginning of the year 7,645,788 (197,249)
Net Position -- end of the year 9,131,509$ 4,215,303$
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Changes in Fiduciary Net Position
For year ended December 31, 2023
City of Pasco, Washington 2023 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.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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
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 a special revenue fund 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.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
• Pension & OPEB 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.
• 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
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
assets. All revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
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, 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 Balance
The Construction Fund, a major capital improvement fund of the City, ended the year with a
negative fund balance of ($1,937,031). The negative fund balance is a result of project spending
that outpaced funding in the current period. Available support is being identified based on
reallocation during capital improvement plan analysis and pending increases to grant awards.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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, 2023, the City
had invested $ 84,533,939 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 is recorded. Special
assessments receivable consists of current assessments, plus any delinquent assessments along
with related interest and penalties. As of December 31, 2023, $50,472 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, 2023, is $102,826.
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
contractual relationships. The municipal court receivable is $10,475,027 of which $9,754,116
is not expected to be collected. Only the net receivable of $720,912 is recorded in the financial
statements. The portion that is calculated as uncollectible is based upon the year’s collection
rate. Contract based receivables are the result of City provision of working or revolving funds
and revenues that the City had not received as of year-end 2023.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
4. Amounts Due to and from Other funds, 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 of 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:
The restricted assets of the enterprise funds are composed of the following:
Customer Deposits 972,349
Unspent Bond Proceeds 5,679,223
Debt Service 237,564
Restricted Assets and Liabilities - Governmental Funds
For Year Ending 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
7. Capital Assets
Capital assets, which include leases, 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.
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:
Customer Deposits 816,172
Unspent Bond Proceeds 24,647,393
Debt Service 755,007
Bond reserve 1,932,966
Asset retirement - reserve 10,832
Restricted Assets and Liabilities - Enterprise Funds
For Year Ending 2023
Assets
Useful Lives
(Years)
Land N/A
Building & Structures 5-50
Other Improvements 5-100
Machinery & equipment & vehicles 2-50
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
8. Leases
Lessee: The City is a lessee for noncancelable leases. The city recognizes a lease liability and
an intangible right-to-use lease asset in the government-wide and proprietary fund financial
statements. The city recognizes lease liabilities with an initial, individual value of $5,000 or
more.
At the commencement of a lease, the city initially measures the lease liability at the present
value of payments expected to be made during the lease term. Subsequently, the lease liability
is reduced by the principal portion of lease payments made. The lease asset is initially measured
as the initial amount of the lease liability, adjusted for lease payments made at or before the
lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is
amortized using the straight‐line basis over its useful life.
Governmental funds recognize a capital outlay and other financing source at the
commencement of a new lease. Lease payments in governmental funds are reported as debt
service principal and debt service interest expenditures.
Key estimates and judgements related to lease include how the city determines (1) the discount
rate it uses to discount the expected lease payments to present value, (2) lease term, and (3)
lease payments.
The city uses the interest rate charged by the lessor as the discount rate. When the interest rate
charged by the lessor is not provided, the city generally uses its incremental borrowing rate as
the discount rate for leases.
The lease term includes the noncancelable period of the lease. Lease payments included in the
measurement of the lease liability are composed of fixed payments and purchase option price
that the city is reasonably certain to exercise.
The city monitors changes in circumstances that would require a remeasurement of its lease
and will remeasure the lease asset and liability if certain changes occur that are expected to
significantly affect the amount of the lease liability.
Lessor: The city is a lessor for noncancelable leases. The city recognizes a lease receivable and
a deferred inflow of resources in the government‐wide and fund financial statements.
At the commencement of a lease, the city initially measures the lease receivable at the present
value of payments expected to be received during the lease term. Subsequently the lease
receivable is reduced by the principal portion of lease payments received. The deferred inflow
of resources is initially measure as the initial amount of the lease receivable, adjusted for lease
payments received at or before the lease commencement date. Subsequently, the deferred
inflow of resources is recognized as revenue over the life of the lease term using the straight‐
line basis.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Key estimates and judgements related to lease include how the city determines (1) the discount
rate it uses to discount the expected lease payments to present value, (2) lease term, and (3)
lease payments.
• The city uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancelable period of the lease. Lease receipts included
in the measurement of the lease liability are compose of fixed payments from the lessee.
The city monitors changes in circumstances that would require a remeasurement of its lease
and will remeasure the lease receivable and deferred inflows of resources if certain changes
occur that are expected to significantly affect the amount of the lease receivable.
9. 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 assets 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 2023 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.
g. Lease activity in which the City is the lessor.
In addition to unavailable revenues, changes in pension and OPEB 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.
10. Compensated Absences
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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.
Non-Represented Employees/Directors/Managers
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 hours. 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 accrual base
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.
Non-Uniformed Police
Sick leave may be accumulated up to a maximum of 960 hours. 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 two times the
employee’s annual vacation accrual rate and is payable upon resignation, retirement, or death.
Operating Engineers
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Sick leave may be accumulated up to a maximum of 960 hours. 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 two times the
employee’s annual vacation accrual rate. Upon retirement from City service employees shall
receive payment for up to 328 hours of accumulated vacation. Any excess vacation must be
taken prior to the last day of employment. An employee who separates from City service for
other than retirement shall receive all accumulated vacation.
11. 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
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 Retiree 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.
12. Long-term Debt
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.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Bond premiums and discounts when material, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payables 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 sources. Issuance costs, whether withheld from actual debt proceeds
received or not, are reported as professional service costs.
13. Unearned Revenues
This account includes amounts recognized as receivables but not revenues in governmental
funds because the revenue recognition criteria have not been met. As of year-end 2023, the city
reported $5,818,559 in unearned revenue due to grant funds received in advance related to State
and Local Fiscal Recovery Funds authorized by the American Rescue Plan Act and awarded
by the US Department of Treasury.
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
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
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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.
F. Accounting and Reporting Change
For the year ended December 31, 2023, the City implemented guidance for the presentation
and disclosure of leases. These changes were in response to the provisions of GASB Statement
No. 96, Subscription Based IT Arrangement (SBITA).
As a result, the impacts to the City related to the adoption of the new SBITA requirements
includes:
• Beginning balances for SBITA liabilities presented on the Schedule of Long-Term
Liabilities have been restated to reflect implementation of these requirements.
• Information regarding the City’s IT arrangements are presented in Note 2 –
Subscription Based IT Arrangements (SBITA).
• SBITA capital assets on the Government-wide Statement of Net Position
NOTE 2: Subscription Based IT Arrangements (SBITA)
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
For the year ended 12/31/2023, the financial statements include the adoption of GASB Statement No. 96,
Subscription Based Information Technology Arrangements (SBITA). The primary objective of this
statement is to enhance the relevance and consistency of information about governments' SBITA activities.
This statement establishes a single model for SBITA accounting based on the principle that SBITA are
financings of the right to use another party’s IT software, alone or in combination with tangible capital
assets as specified in the contract for a period of time in an exchange or exchange -like transactions. With
the implementation of GASB Statement No. 96, all existing and newly acquired SBITA were analyzed and
classified as either qualified or non-qualified arrangements. Under this Statement, the City is required to
recognize a SBITA liability and an intangible right-to-use SBITA asset, for all qualified arrangements. For
additional information, refer to the disclosures below.
The City maintains SBITA agreements for many different software programs. Payments are made
periodically based on each individual contract term. Principal payments made through the current year for
qualified SBITA were $806,879 with $23,534 charged to interest.
Future principal and interest lease payments as of December 31, 2023, were as follows:
NOTE 3: DEPOSITS AND INVESTMENTS
Summary of Deposit and Investment Balances
Reconciliation of the City’s deposits and investment balances as of December 31, 2023, is as
follows:
Asset Class Subscription Asset Value Accumulated Amortization
Software 2,228,106 806,879
Total Subscriptions 2,228,106 806,879
Amount of Subscription Assets by Major Classes of Underlying Asset
As of Fiscal Year-end
Fiscal Year Principal Payments Interest Payments Total Payments
2024 703,411 36,831 740,243
2025 679,219 18,316 697,535
2026 8,468 225 8,693
Total Principal Payments 1,391,098
Total Remaining Liability 1,391,098
Principal and Interest Requirements to Maturity
Governmental Activities
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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
prorated 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.
Interest Rate Risk
Government Wide Fiduciary Funds
Cash on Hand 7,550 -
Deposits with Private Financial Institutions 96,112,860 4,236,201
Deposits in transit 372,577 -
Outstanding Checks (6,716,340) -
Deposits in State LGIP 84,533,939 -
Total Deposits 174,310,587 4,236,201
Investments 4,764,670 8,317,611
Total Investments 4,764,670 8,317,611
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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, 2023, 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 15,006$ 15,006$ -$ -$ 0.31%
Federal Farm Credit Bank 942,787 942,787 - - 19.79%
Federal Home Loan Bank 1,922,194 1,922,194 - - 40.34%
Federal National Mortgage Association 1,884,683 1,884,683 - - 39.56%
Total Debt Securties 4,764,670$ 4,764,670$ -$ -$ 100.00%
Investment Maturities (in Years)
Maturity Date
# of Months to
Maturity
Fair Market
Value as
12/31/23 % of total WAM
02/01/2027 37 15,006 0.31%0.158884
11/25/2024 11 1,922,194 40.34%6.298135
12/01/2025 23 1,884,683 39.56%6.571615
06/17/2025 18 942,787 19.79%3.561666
16 4,764,670$ 100.00%22.580372
Calculation of Weighted Average Maturity (WAM)
City of Pasco, Washington 2023 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, 2023.
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.
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.
Investments Reported as Cash Equivalents as of December 31, 2023
Amortized Cost Less than 1 Year
Local Government Investment Pool $84,533,939 $84,533,939
In addition to the City of Pasco investments presented in the series of tables following this section,
the City’s Old Fire Pension and Old Fire OPEB Funds report the following investments in their
Trust Funds:
ISSUER
*FAIR VALUE AT
12/31/23 PERCENTAGE
SBA Participation 15,006 0.31%
Federal Farm Credit Bank - 0.00%
Federal Home Loan Bank 1,922,194 40.34%
Federal Farm Credit Bank 942,787 19.79%
Federal National Mortgage Association 1,884,683 39.56%
TOTAL 4,764,670$ 100%
*All investments were measured at Level 2, Significant Other Observable Inputs.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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, 2023, the City had the following investments measured at fair value:
City of Pasco, Washington 2023 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 12/31/23 delinquent taxes totaled $204,951.
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 2023 was $1.28754 per $1,000 on an assessed valuation of
$9,752,006,225. This resulted in a total regular levy of $12,555,023 for 2023. The City did not levy
any taxes for special levies in 2023.
January 1 Taxes are levied and become an enforceable lien against properties.
February 14 Tax bills are mailed.
April 30 First of two equal installment payments is due.
May 31 Assessed value of property established for next year's levy at 100% of market value.
October 31 Second installment is due.
Property Tax Calendar
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
NOTE 5: CAPITAL ASSETS AND CWIP
Capital asset activity for the year ended December 31, 2023, was as follows:
Governmental Activities:
Beginning
Balance
01/01/23
Prior Period
Adjustments
Adjusted
Beginning
Balance
01/01/23
Current Period
Increases
Current Period
Decreases
Ending Balance
12/31/23
Capital assets, not being depreciated
Land 25,789,159$ -$ 25,789,159$ 715,966$ -$ 26,505,125$
Construction in process 33,632,348 619,926 34,252,274 38,346,084 5,948,075 66,650,283
Total capital assets, not being depreciated 59,421,507 619,926 60,041,433 39,062,050 5,948,075 93,155,408
Capital assets, being depreciated:
Building & structure 67,287,431 - 67,287,431 2,265,575 - 69,553,006
Improvements Other than buildings 12,996,425 - 12,996,425 133,638 - 13,130,063
Machinery and equipment 22,820,663 - 22,820,663 2,629,952 359,187 25,091,428
Infrastructure 325,611,709 - 325,611,709 31,008,814 - 356,620,523
Right-to-use- lease assets 2,838,138 - 2,838,138 4,039,414 - 6,877,552
Subscription assets - - - 2,228,106 - 2,228,106
Total capital assets being depreciated/amortized 431,554,366 - 431,554,366 42,305,499 359,187 473,500,678
Less accumulated depreciation:
Building & structure 18,247,266 - 18,247,266 1,647,259 - 19,894,525
Improvements other than building 4,476,540 - 4,476,540 418,627 - 4,895,167
Machinery and equipment 13,161,200 - 13,161,200 736,861 313,117 13,584,944
Infrastructure 149,510,555 - 149,510,555 13,551,185 - 163,061,740
Right-to-use- lease assets 442,434 - 442,434 3,399,124 - 3,841,558
Subscription assets - - 806,879 - 806,879
Total accumulated depreciation/amortized, net 185,837,995 - 185,837,995 20,559,935 313,117 206,084,813
Total capital assets, being depreciated, net 245,716,371 - 245,716,371 21,745,564 46,070 267,415,865
Governmental activities capital assets net 305,137,878$ 619,926$ 305,757,804$ 60,807,614$ 5,994,145$ 360,571,273$
Business Type Activities:
Beginning
Balance
01/01/23
Prior Period
Adjustments
Adjusted
Beginning
Balance
01/01/23
Current Period
Increases
Current Period
Decreases
Ending Balance
12/31/23
Capital assets, not being depreciated
Land 4,596,533 - 4,596,533 278,870 - 4,875,403
Construction in process 45,213,707 (529,254) 44,684,453 59,617,107 1,859,158 102,442,402
Total capital assets, not being depreciated 49,810,240 (529,254) 49,280,986 59,895,977 1,859,158 107,317,805
Capital assets, being depreciated:
Building & structure 87,827,554 - 87,827,554 - - 87,827,554
Other Improvements 583,605 - 583,605 - - 583,605
Machinery and equipment 18,189,189 - 18,189,189 1,675,638 232,129 19,632,698
Infrastructure 194,895,649 - 194,895,649 5,392,410 - 200,288,059
Total capital assets being depreciated 301,495,997 - 301,495,997 7,068,048 232,129 308,331,916
Less accumulated depreciation:
Building & structure 26,138,545 - 26,138,545 1,957,670 - 28,096,215
Other Improvements 50,383 - 50,383 17,741 - 68,125
Machinery and equipment 8,787,062 - 8,787,062 986,441 232,129 9,541,376
Infrastructure 51,925,749 - 51,925,749 4,446,962 - 56,372,712
Total accumulated depreciation 86,901,739 - 86,901,739 7,408,814 232,129 94,078,428
Total capital assets, being depreciated, net 214,594,258 - 214,594,258 (340,766) - 214,253,488
Business activities capital assets net 264,404,498$ (529,254)$ 263,875,244$ 59,555,211$ 1,859,158$ 321,571,293$
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Depreciation expense by function:
Construction commitments
The City of Pasco has active construction projects as of December 31, 2023. 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, 2023, 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
Governmental activities:
General government 1,256,912$
Public Safety 4,521,539
Transportation 13,579,396
Economic environment 161,420
Culture & recreation 1,040,668
Total depreciation expense - governmental activities 20,559,935$
Business-type activities:
Water 2,708,166$
Irrigation 643,888
Sewer 2,514,834
Process water reuse facility 1,269,058
Stormwater 272,868
Total depreciation expense- business-type activities:7,408,814$
CATEGORY PROJECT NAME SPENT TO DATE REMAINING
COMMITMENT
Transportation Lewis Street Overpass 21,972,941 4,082,100
Transportation City Wide Traffic Signal Improvements ? Phase 2 4,256,349 356,073
Transportation Argent Road Widening - Phase 3 (Road 36 to Saraceno)1,867,330 1,605,313
Transportation Road 100 Interchange Improvements East/Westbound Ramps 765,501 5,422,675
Economic Development Animal Shelter Facility (B)3,230,609 1,129,476
General Government GESA Stadium Improvement 983,904 799,584
Parks and Recreation A Street Sports Complex Phase 1 1,283,041 100,754
Sewer Riverview East Lift Station /Road 52 & Pearl Street Lift Station 867,567 71,293
Sewer WWTP Improvements Phase 1 17,405,733 853,668
Sewer WWTP Improvements Phase 2A 571,765 13,425,152
Sewer WWTP Improvements Phase 2B 4,687,588 2,108,970
Sewer East UGA Expansion Sewer LID 152, Phase 1 1,654,917 621,351
Sewer East UGA Expansion Sewer LID 152, Phase 3 1,377,243 2,314,123
Sewer East UGA Expansion Sewer LID 152, Phase 4 2,351,585 3,342,136
Water Reservoir Storage Tank Zone 3 13,423,347 3,659,073
Process Water Reuse Facility PWRF Pretreatment Improvements (Phase 2) Winter Storage Pond 7,539,215 24,049,032
TOTAL 84,238,636 63,940,773
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
day loans from the general fund totaling $4,926,893 for funds with negative cash at year end that
are classified as due from transactions on the balance sheet governmental funds. The composition
of due to and due from balances as of December 31, 2023, are presented in the following table.
Inter-fund transfers
Transfers between funds during the year ended December 31, 2023, are as follows:
Transfers are used to 1) move unrestricted general fund revenues to finance various programs that
the government must account for in other funds in accordance with budgetary authorizations,
including amounts provided as subsidies or matching funds for various grant programs; 2) move
investment earnings or operating subsidies from one fund to its designated, authorized purpose
carried out by another fund; 3) move resources designated for construction to and from
construction funds as projects are created and/or completed.
Loan Purpose
Nonmajor Debt
Service
Water/Sewer
Utility Total
Equipment Replacement ULID Financing - 2,286,751 2,286,751
Nonmajor Special Revenue LID Financing 17,635 - 17,635
17,635$ 2,286,751$ 2,304,386$
IN
T
E
R
F
U
N
D
L
O
A
N
S
DU
E
F
R
O
M
INTERFUND LOANS DUE TO
Total
Nonmajor Special
Revenue
Major
Construction Total
General Fund 547,400$ $ 4,379,493 4,926,893$
Total 547,400$ 4,379,493$ 4,926,893$
DU
E
F
R
O
M
DUE TO
General Nonmajor
Special Revenue Major ARPA Total
General -$ 315,014$ 265,480$ 580,494$
Nonmajor Special Revenue 2,852,529 15,096 168,414 3,036,039
Major Construction 9,218,308 13,482,715 26,793 22,727,816
Major Utility - - 5,915,111 5,915,111
Total 12,070,837$ 13,812,825$ 6,375,798$ 32,259,460$
TRANSFER FROM
TR
A
N
S
F
E
R
T
O
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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.
NOTE 7: CHANGES IN LONG-TERM LIABILITIES
Changes in long-term liabilities - governmental.
The City liquidates most governmental debt service, leases, SBITA, 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.
The table below reflects the change in Long-Term Liabilities for Governmental activities for
year ended December 31, 2023.
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, 2023.
GOVERNMENTAL ACTIVITIES Beginning Balance
01/01/2023 Additions Reductions Ending Balance
12/31/23
Due Within One
Year
General Obligation Bonds 23,010,000$ 12,600,000$ 945,000$ 34,665,000$ 1,270,000$
Premiums 3,884,541 967,063 151,850 4,699,754 200,203
Total GO Bonds Payable 26,894,541 13,567,063 1,096,850 39,364,754 1,470,203
HUD Section 108 Loan 3,401,000 - 190,000 3,211,000 190,000
Compensated Absences 3,616,614 3,591,371 3,210,590 3,997,395 3,042,998
Leases 1,973,069 4,613,189 749,128 5,837,130 1,118,845
Subscription based IT arrangements - 2,228,106 837,008 1,391,098 703,412
OPEB Liabilities 8,499,941 - 1,813,530 6,686,411 526,997
Pension Liabilities 1,916,891 - 68,041 1,848,849 458,018
Governmental Activity Long-Term Activity 19,407,515 10,432,666 6,868,297 22,971,883 6,040,270
Total Governmental Activity Long-Term Activity 46,302,056$ 23,999,729$ 7,965,147$ 62,336,637$ 7,510,473$
City of Pasco, Washington 2023 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. There was a bond issue in 2023 for the purpose of an annex building to
the Tri-City Animal Shelter, City pool improvements, City Hall improvements and additional
improvements to the Gesa Stadium. 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, 2023, are as follows:
BUSINESS TYPE ACTIVITIES Beginning Balance
01/01/2023 Additions Reductions Ending Balance
12/31/23
Due Within One
Year
Revenue Bonds 46,920,000$ 33,245,000$ (6,235,000)$ 73,930,000$ 2,545,000$
Premiums 2,356,662 1,506,970 (131,308) 3,732,324 207,754
Total Bonds Payable 49,276,662 34,751,970 (6,366,308) 77,662,324 2,752,754
State Loans 37,685,091 32,936,655 (1,534,163) 69,087,583 2,701,691
External Loan 914,171 - (140,480) 773,691 144,950
Compensated Absences 350,703 67,846 - 418,549 379,860
Pension Liabilities 686,130 - 27,901 658,229 211,478
Asset Retirement Obligation 10,363 469 - 10,832 -
Total Loans & Other 39,646,458 33,004,970 (1,646,742) 70,948,884 3,437,979
Business Activity Long-Term Activity 88,923,120 67,756,940 (8,013,050) 148,611,208 6,190,733
Total Changes in Business Type & Governmental
Long-Term Liabilities 135,225,176$ 91,756,669$ (47,903)$ 210,947,846$ 13,701,206$
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
The annual debt service requirements to maturity for general obligation bonds and loans is
presented in the following table.
Purpose Issuance Amount Final Maturity Interest Rates Outstanding as of
December 31, 2023
Due Within 1
Year
2015 LTGO Police Station 8,795,000 12/1/2035 3.00%-4.00%6,050,000$ 405,000$
2019 LTGO Fire Stations 14,800,000 12/1/2049 4.00%-5.00%13,132,300 479,700 82%479,700
2019 LTGO Gesa Stadium 1,645,000 12/1/2049 4.00%-5.00%1,441,350 52,650 9%52,650
2019 LTGO Animal Shelter 1,645,000 12/1/2049 4.00%-5.00%1,441,350 52,650 9%52,650
2023 LTGO Animal Shelter - Annex 1,638,000 12/1/2043 5.00%1,638,000 36,400 13%36,400.00$
2023 LTGO Fire Stations 7,938,000 12/1/2043 5.00%7,938,000 176,400 63%176,400.00$
2023 LTGO Pool Improvments 1,134,000 12/1/2043 5.00%1,134,000 25,200 9%25,200.00$
2023 LTGO City Hall Improvements 756,000 12/1/2043 5.00%756,000 16,800 6%16,800.00$
2023 LTGO Gesa Stadium 1,134,000 12/1/2043 5.00%1,134,000 25,200 9%25,200.00$
34,665,000$ 1,270,000$ 33,395,000$
Purpose Issuance Amount Final Maturity Interest Rates Outstanding as of
December 31, 2023
Due Within 1
Year
2021 HUD Section 108 Loan1 3,781,000$ 08/01/2040 0.350-4.35%3,211,000$ 190,000$ 3,021,000$
3,211,000 190,000
37,876,000$ 1,460,000$
GOVERNMENTAL DEBT - BONDS
Total Governmental Debt
GOVERNMENTAL DEBT -LOANS
Total Governmental Type Debt
1HUD Section 108 Loan is to fund the Peanut Park Restoration Project
Year Ending
December 31 Principal Interest Total Debt Service
2024 1,460,000 1,868,300 3,328,300
2025 1,640,000 1,678,875 3,318,875
2026 1,700,000 1,606,482 3,306,482
2027 1,770,000 1,531,137 3,301,137
2028 1,835,000 1,452,335 3,287,335
2029-2033 9,430,000 6,002,056 15,432,056
2034-2038 7,836,000 4,050,046 11,886,046
2039-2043 7,675,000 2,280,351 9,955,351
2044-2048 3,680,000 782,000 4,462,000
2049 850,000 42,500 892,500
TOTAL 37,876,000$ 21,294,082$ 59,170,082$
GOVERNMENTAL DEBT
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Business-Type Debt
In 2023, 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 2023, the City refunded 2 bonds and issued $10.2 million
revenue bond for Reuse Facility improvements and issued $21.37 million revenue bonds for Water,
Irrigation and Storm projects. In 2023 the City received two Department of Ecology loans one for
Sewer Treatment Plant improvements and one for Reuse Facility improvements, a Department of
Commerce CERB loan for Reuse Facility improvements and a Department of Health safe drinking
water loan for Butterfield Water Treatment Plant.
The City is also liable for three Department of Ecology loans two for Sewer improvements and
one for Reuse Facility: Drinking Water Loan for the Columbia Water Supply Project. The
Columbia Water Supply Project was completed in 2018. Two Drinking Water Loan for West Pasco
Water Treatment Plant; Two Public Works Board loans for pre-construction of Reuse Facility
improvements and Water Reservoir Storage Tank Zone 3. 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, 2023, restricted cash and investments in the proprietary funds contain
$1,932,965 in sinking funds and reserves as required by bond indentures.
Revenue Bonds, General Obligation Bonds and Loans outstanding for Business-Type Accounts
are as follows:
Purpose Issuance Amount Final Maturity Interest Rates Outstanding as of
December 31, 2023
Due Within 1
Year
2013A Sewer Capital Projects 2,520,000$ 12/01/2028 3.00%-4.00%-$ -$ 2a
2013T Capital Projects Reuse Facility 7,235,000 12/01/2028 .69%-4.89%- - 2b
2015 Water/Sewer Capital Projects 14,380,000 12/01/2040 2.00%-5.00%11,155,000 270,000
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%5,025,000 760,000
2020B PWRF Revenue Bond 16,415,000 12/01/2050 1.17%-3.57%15,090,000 390,000
2023A Water/Sewer Revenue Bond8 20,845,000 12/01/2043 3.29%-4.43% 20,845,000 570,000
2023B PWRF Revenue Bond9 12,400,000$ 12/01/2043 5.34%-6.00% 12,400,000 555,000
73,930,000$ 2,545,000$ 5a
1 This bond requires interest-only payments until 2030.
BUSINESS TYPE DEBT -BONDS
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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, 2023
Due Within 1
Year
DM15-952-037 Columbia Water Supply Project 6,810,430$ 10/01/2034 1.50%4,396,227$ 399,657$
DWL26037 DWSRF WP WTP Ph 1 2 5,050,000 10/01/2040 1.75%5,097,569 299,857
DWL27107 DWSRF WP WTP Ph 2 7 9,753,259 10/01/2042 1.75%5,895,205 310,274
PC22-96103-049 Reservoir Storage Tank Zone 3 10,000,000 06/01/2041 0.94%9,645,542 535,863
PCL28205 DWSRF Butterfield WTP PH 10 510,000 10/01/2033 0.00%23,636 2,364 411
WQC-2021-Pasco-00020 Clean Water Preservation5 5,532,429 06/30/2044 1.20%5,149,124 90,034
WQC-2024-Pasco-00007 Clean Water Preservation4 26,283,195 06/30/2044 1.20%5,500,000
WQC-2022-Pasco-00044 Water Quality Sewer6 21,511,498 06/30/2044 1.90%18,828,525 603,056 450
HAEIFAC - Reuse Facility Improvement Loan 1,500,000 07/01/2028 3.20%773,691 144,949
PR18-96103-065 PWRF Pre-treatment Improvements 1,000,000 06/01/2024 0.84%418,535 418,535
S23-790A0-257 Dept of Commerce CERB11 4,250,000 07/31/2044 2.00%4,250,000 -
WQC-2021-Pasco-00044 Clean Water Preservation6 1,500,000 06/30/2044 1.20%1,500,000 42,051
WQC-2024-Pasco-00091 Clean Water Preservation3 34,934,159$ 06/30/2045 1.20%8,383,220 460
69,861,274 2,846,640 7f
Total Business Type Debt 143,791,274$ 5,391,640$ pg60
1This bond requires interest only payments until 2030.
2New DWSRF loan issued by the Water/Sewer Utility in 2022 to be used for Water/Sewer infrastructure improvements. DWSRF has held back 500,000 in reimbursement until project is complete
4 2024 Department of Ecology Loan- Water Quality Combined Financial Assistance to be used for WWTP infrastructure Total loan $26,283,195 recorded draw $5,500,000
6WQC-2021-Pasco-00044 Clean Water loan is approved for $21,511,498 and recorded draws $18,828,525
7DWL27107 DWSRF WPWTP Ph2 2 loan is approved for $9,753,259. and recorded draws $6,003,919
8New revenue bonds issued by the Water/Sewer Utility in 2023 to be used for Utility infrastructure improvements.
9New revenue bonds issued by the PWRF in 2023 to be used for PWRF infrastructure improvements.
10New DWSRF Loan in the amount of $510,000 drawn to date $23,636
11New CERB Dept of Commerce loan in the amount of 4,250,000 fully drawn used for PWRF improvements
5WQC-2021-Pasco-00020 Clean Water loan was approved $4,932,429 amended in 2023 600k added total of 5,532,429. Recorded draws of $5,149,124. In procees of amending loan by $383,305.
Final draw has been made in amt of $5,149,124
BUSINESS TYPE DEBT -LOANS
3 2024 Department of Ecology Loan- Water Quality Combined Financial Assistance to be used for WWTP total loan $34,934,159 drawn to date $8,383,220 Dept of Commerce has held back
500,000 in reimbursement until project is complete
Year Ending
December 31 Principal Interest Total Debt Service
2024 5,391,641$ 4,040,754$ 9,432,395$
2025 6,026,370 3,946,133 9,972,503
2026 6,287,378 3,937,892 10,225,270
2027 6,752,276 3,761,569 10,513,845
2028 6,900,114 3,574,588 10,474,702
2029-2033 33,492,855 15,218,333 48,711,188
2034-2038 36,590,133 10,261,054 46,851,187
2039-2043 34,514,035 4,433,845 38,947,880
2044-2048 6,216,472 719,427 6,935,899
2049-2053 1,620,000 87,335 1,707,335
TOTAL 143,791,274$ 49,980,930$ 193,772,204$
BUSINESS TYPE DEBT
City of Pasco, Washington 2023 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, 2023.
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 $432,906. 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: LEASES
Beginning in fiscal year 2022, the financial statements include the adoption of GASB Statement
No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency
of information about governments' leasing activities. This statement establishes a single model for
lease accounting based on the principle that leases are financings of the right to use an underlying
asset. With the implementation of GASB Statement No. 87, all existing and newly acquired leases
were analyzed and classified as either qualified or non-qualified leases, for both lessee and lessor
positions. Under this Statement, a lessee is required to recognize a lease liability and an intangible
right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow
of resources for all qualified leases. For additional information, refer to the disclosures below.
City as a Lessee
The City is a lessee of various leases for buildings and vehicles. Payments are made periodically
based on each individual contract term. Principal payments made through the current year for
qualified lease agreements were $755,389 with $215,204 charged to interest.
Future principal and interest lease payments as of December 31, 2023, were as follows:
Bonds Governmental Business Type Total
Current Bonds Payable 945,000$ 2,095,000$ 3,040,000$
Bond Premium/Discounts - 126,899 126,899
Total Current Bonds Payable 945,000 2,221,899 3,166,899
Non Current - Bonds Payable 22,065,000 44,825,000 66,890,000
Bond Premium/Discounts - 22,297,963 22,297,963
Total Non Current Bonds Payable 22,065,000 67,122,963 89,187,963
Total Bonds Payable 23,010,000 46,920,000 69,930,000
Total Bond Premium/Discounts - 22,424,862 22,424,862
Total Bonds Payable (Net of Premium/Discounts )23,010,000$ 69,344,862$ 92,354,862$
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
City as a Lessor
The City is a lessor of various leases for land, buildings and infrastructure. These leases each have
varying length terms bases on each individual contract term. The City recognized principal lease
revenue of $489,990 and interest revenue of $33,771 for qualified lease agreements.
Future lease principal and interest revenue receipts as of December 31, 2023, were as follows:
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
NOTE 10: RISK MANAGEMENT
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 169 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 sublimits. The Board of
Directors determines the limits and terms of coverage annually.
All Members are provided a separate cyber risk policy and premises pollution liability coverage
group purchased by WCIA. The cyber risk policy provides coverage and separate limits for
security & privacy, event management, and cyber extortion, with limits up to $1 million and
subject to member deductibles, sublimits, and a $5 million pool aggregate. Premises pollution
liability provides Members with a $2 million incident limit and $10 million pool aggregate
subject to a $100,000 per incident Member deductible.
Insurance for property, automobile physical damage, fidelity, inland marine, and equipment
breakdown coverage are purchased on a group basis. Various deductibles apply by type of
coverage. Property coverage is self-funded from the members’ deductible to $1,000,000, for all
perils other than flood and earthquake, and insured above that to $400 million per occurrence
subject to aggregates and sublimits. Automobile physical damage coverage is self-funded from
the members’ deductible to $250,000 and insured above that to $100 million per occurrence
subject to aggregates and sublimits.
In-house services include risk management consultation, loss control field services, and claims
and litigation administration. WCIA contracts for certain claims investigations, consultants for
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
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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 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.
The number of medical/dental claims in excess of commercial insurance for the last three years
are:
2021 2022 2023
$5,928,124 $6,604,033 $7,424,274
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.
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 $314,273 on December
31, 2023, 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.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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 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 Sheriffs 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 $73,272 on Dec 31, 2023, 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 Metro.
Complete separate financial statements for Metro obtained at the City of Kennewick, 210 West Sixth
Avenue, Kennewick, Washington.
C. 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, 2023 was $1,202,241 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.
D. 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
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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. As of July 1, 2022, the City
agreed to manage the operations of the authority.
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 the
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 seven members. Five of the members are representative of for-profit
business or property owners within the downtown area. Two members are representative of the
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
banking and/or real estate profession, and/or representatives of business 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.
In 2023, the City expended $132,500 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.
In 2023, the Executive Director for the Authority resigned resulting in both cessation of most
Authority operations and financial hardship. Upon Executive Director resignation, the City
reassumed operational control of City assets, including Farmers’ Market and Pasco Specialty
Kitchen, which made up a significant portion of historical DPDA responsibilities. Reflective of
the uncertainty and challenges faced in 2023, vacancies on the board were left unfilled.
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 2023, the City of Pasco paid Franklin County $197,500 for operating expenditures.
In October 2023, Franklin County awarded a new management contract to the Harris -White-
Leisure Group. Due to significant facility upgrades suggested by the new management company,
the City contracted out for an independent facility audit to verify the recommendations. Franklin
County agreed to refund half of that expense to the City, for a total reimbursement of $17,500.
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, 2023,
the TRAC Fund had a fund balance of $237,759.
Complete financial statements for TRAC may be obtained from Franklin County, 1016 N. 4th
Avenue, Pasco, Washington.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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.
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.
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 defined 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.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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.
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 2023 for these services was $483,288. No distributions of income to the City are
expected since charges are assessed only to 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 2023:
Aggregate Pension Amounts - All Plans
Pension Liabilities $ 2,507,079
Pension Assets (24,367,415)
Deferred Outflows of Resources 14,600,941
Deferred Inflows of Resources 10,372,259
Pension Expense $ (990,071)
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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 annual comprehensive annual financial report
(ACFR) that includes financial statements and required supplementary information for each plan.
The DRS ACFR may be downloaded from the DRS website at www.drs.wa.gov.
Public Employee’s Retirement System (PERS)
PERS members include elected officials; state employees; employees of local governments; and
higher education employees not participating in higher education retirement programs.
PERS is comprised of three separate pension plans for accounting purposes: Plan 1, Plan 2/3 and
Plan 3. Plan 1 accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts for the
defined benefits of Plan 2 members and the defined benefit portion of benefits for Plan 3 members.
Plan 3 accounts for the defined contribution portion of benefits for Plan 3 members. Although
employees can be a member of only Plan 2 or Plan 3, the defined benefits of Plan 2 and Plan 3 are
accounted for in the same pension trust fund. All assets of Plan 2/3 may legally be used to pay the
defined benefits of any Plan 2 or Plan 3 members or beneficiaries.
PERS Plan 1 provides retirement, disability, and death benefits. Retirement benefits are
determined as 2% 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. PERS
Plan 1 retirement benefits are actuarially reduced if a survivor benefit is chosen. Members retiring
from active status prior to the age of 65 may also receive actuarially reduced benefits. Other
benefits include an optional cost-of-living adjustment (COLA). 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, adopted by the Pension
Funding Council and is subject to change by the legislature. The PERS Plan 1 required
contribution rates (expressed as a percentage of covered payroll) for 2023 were as follows:
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
* For employees participating in JBM, the contribution rate was 12.26%.
PERS Plan 2/3 provides retirement, disability, and death benefits. Retirement benefits are
determined as 2% of the member’s average final compensation (AFC) times the member’s years
of service for Plan 2 and 1% of AFC for Plan 3. The AFC is the average of the member’s 60
highest-paid consecutive service months. 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 retirement benefits are actuarially
reduced if a survivor benefit is chosen. Other PERS Plan 2/3 benefits include a COLA based on
the CPI, capped at 3% annually. PERS 2 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. Members are eligible to withdraw their defined
contributions upon separation. Members have multiple withdrawal options, including purchase of
an annuity. PERS Plan 3 members are immediately vested in the defined contribution portion of
their plan.
PERS Plan 1
Actual Contribution Rates Employer Employee*
January – June
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 3.85%
Administrative Fee 0.18%
Total 10.39% 6.00%
July – August
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 2.85%
Administrative Fee 0.18%
Total 9.39% 6.00%
September – December
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 2.97%
Administrative Fee 0.20%
Total 9.53% 6.00%
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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 rates are adopted
by the Pension Funding Council and are subject to change by the Legislature. The employer rate
includes a component to address the PERS Plan 1 Unfunded Actuarial Accrued Liability (UAAL).
As established by Chapter 41.34 RCW, Plan 3 defined contribution rates are set at a minimum of
5% and a maximum of 15%. PERS Plan 3 members choose their contribution rate from six options
when joining membership and can change rates only when changing employers. Employers do
not contribute to the defined contribution benefits.
The PERS Plan 2/3 defined benefit required contribution rates (expressed as a percentage of
covered payroll) for 2023 were as follows:
PERS Plan 2/3
Actual Contribution Rates Employer 2/3 Employee 2* Employee 3**
January – June
PERS Plan 2/3 6.36% 6.36% Varies
PERS Plan 1 UAAL 3.85%
Administrative Fee 0.18%
Total 10.39% 6.36%
July – August
PERS Plan 2/3 6.36% 6.36% Varies
PERS Plan 1 UAAL 2.85%
Administrative Fee 0.18%
Total 9.39% 6.36%
September – December
PERS Plan 2/3 6.36% 6.36% Varies
PERS Plan 1 UAAL 2.97%
Administrative Fee 0.20%
Total 9.53% 6.36%
* For employees participating in JBM, the contribution rate was 15.90%.
**For employees participating in JBM, the minimum contribution rate was 7.50%.
The City’s actual PERS plan contributions were $706,753 to PERS Plan 1 and $1,325,339 to PERS
Plan 2/3 for the year ended December 31, 2023.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF was established in 1970, and its retirement benefit provisions are contained in Chapter
41.26 RCW. LEOFF membership includes all of the state’s full-time, fully compensated, local
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
law enforcement commissioned officers, fire fighters and, as of July 24, 2005, emergency medical
technicians.
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-paid consecutive 24 months’ 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 a
COLA. 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.
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute 0%, as long as the
plan remains fully funded. The LEOFF Plan I had no required employer or employee contributions
for fiscal year 2023. Employers paid only the administrative expense of 0.20% of covered payroll.
LEOFF Plan 2 provides retirement, disability, and death benefits. Retirement benefits are
determined as 2% of the FAS per year of service (the FAS is based on the highest-paid 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 - 52, the reduction is 3% 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 a COLA (based on the CPI), capped at 3% annually. 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 rates are adopted by the LEOFF Plan 2 Retirement Board
and are subject to change by the Legislature.
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. Th e
state contribution rate (expressed as a percentage of covered payroll) was 3.41% in 2023.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for
2023 were as follows:
LEOFF Plan 2
Actual Contribution Rates Employer Employee
January – August
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%
September – December
State and local governments 5.12% 8.53%
Administrative Fee 0.20%
Total 5.32% 8.53%
Ports and Universities 8.53% 8.53%
Administrative Fee 0.20%
Total 8.73% 8.53%
The City’s actual contributions to the plan were $1,299,855 for the year ended December 31, 2023.
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 Office of the State Actuary and the LEOFF Plan
2 Retirement Board. This special funding situation is not mandated by the state constitution and
could be changed by statute. For the state fiscal year ending June 30, 2023, the state contributed
$87,966,142 to LEOFF Plan 2. The amount recognized by the City as its proportionate share of
this amount is $789,575.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent
actuarial valuation completed in 2023 with a valuation date of June 30, 2022. 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 2021 Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2022 actuarial
valuation report. The TPL was calculated as of the valuation date and rolled forward to the
measurement date of June 30, 2023. Plan liabilities were rolled forward from June 30, 2022, to
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
June 30, 2023, reflecting each plan’s normal cost (using the entry-age cost method), assumed
interest and actual benefit payments.
• Inflation: 2.75% total economic inflation; 3.25% salary inflation
• Salary increases: In addition to the base 3.25% salary inflation assumption, salaries are also
expected to grow by service-based salary increase.
• Investment rate of return: 7.00%
Mortality rates were developed using the Society of Actuaries’ Pub. H-2010 mortality rates, which
vary by member status (e.g. active, retiree, or survivor), as the base table. 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.
Methods did not change from the prior contribution rate setting June 30, 2021 Actuarial Valuation
Report (AVR). OSA did make an assumption change to adjust TRS Plan 1 assets, LEOFF Plan
1/2 assets, and LEOFF participant data to reflect certain material changes occurring after the June
30, 2022 measurement date.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.0%.
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 7.0% 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 7.0% was
determined using a building-block-method. In selecting this assumption, 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
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
The table below summarizes the 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. The inflation
component used to create the table is 2.2% and represents the WSIB’s most recent long -term
estimate of broad economic inflation.
Asset Class Target Allocation
% Long-Term
Expected Real
Rate of Return
Arithmetic
Fixed Income 20% 1.5%
Tangible Assets 7% 4.7%
Real Estate 18% 5.4%
Global Equity 32% 5.9%
Private Equity 23% 8.9%
100%
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%, 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%) or 1-
percentage point higher (8%) 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
1% Decrease Current Discount
Rate 1% Increase
6% 7% 8%
PERS Plan 1 $ 3,502,579 $ 2,507,079 $ 1,638,242
PERS Plan 2/3 6,313,550 (5,804,924) (15,761,016)
LEOFF Plan 1 (1,771,940) (1,998,341) (2,194,666)
LEOFF Plan 2 $ 2,175,474 $ (13,139,064) $ (25,672,699)
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
At June 30, 2023, the City reported its proportionate share of the net pension liabilities and assets
as follows:
Liability (or Asset)
PERS 1 2,507,079
PERS 2/3 (5,804,924)
LEOFF 1 (1,998,341)
LEOFF 2 (13,139,064)
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:
On 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, 2023, 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 2023.
LEOFF 1 Asset LEOFF 2 Asset
Employer’s proportionate share (1,998,341) (13,139,064)
State’s proportionate share of the net
pension asset associated with the
employer
(13,516,728) (8,390,471)
TOTAL (15,515,069) (21,529,535)
Proportionate Proportionate Change in
Plan Share 6/30/22 Share 6/30/23 Proportion
PERS 1 0.093487% 0.109828% 0.016341%
PERS 2/3 0.121879% 0.141629% 0.019750%
LEOFF 1 0.067125% 0.067329% 0.000204%
LEOFF 2 0.486887% 0.547781% 0.060894%
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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 2023, the state of Washington contributed 39% of LEOFF 2 employer contributions
pursuant to RCW 41.26.725 and all other employers contributed the remaining 61% of employer
contributions.
Pension Expense
For the year ended December 31, 2023, the city recognized pension expense as follows:
Pension Expense 2023
PERS 1 $ 503,872
PERS 2/3 (863,630)
LEOFF 1 (180,708)
LEOFF 2 (240,637)
Old Fire Pension (208,968)
TOTAL $ (990,071)
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2023, the city reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following:
Deferred Outflows Deferred Inflows
PERS 1 of Resources of Resources
Differences between expected and actual experience
$ - $ -
Net difference between projected and actual investment earnings on
pension plan investments - (282,809)
Changes of assumptions - -
Changes in proportion share - -
Contributions subsequent to the measurement date 319,016 -
TOTAL $ 319,016 $ (282,809)
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Deferred Outflows Deferred Inflows
PERS 2/3 of Resources of Resources
Differences between expected and actual experience $ 1,182,456 $ (64,859)
Net difference between projected and actual investment earnings on
pension plan investments - (2,187,646)
Changes of assumptions 2,437,108 (531,194)
Changes in proportion share 71,400 (1,099,594)
Contributions subsequent to the measurement date 684,824 -
TOTAL $ 4,375,788 $ (3,883,293)
Deferred Outflows Deferred Inflows
LEOFF 1 of Resources of Resources
Differences between expected and actual experience $ - $ -
Net difference between projected and actual investment earnings on
pension plan investments - (132,508)
Changes of assumptions - -
Changes in proportion share - -
Contributions subsequent to the measurement date - -
TOTAL $ - $ (132,508)
Deferred Outflows Deferred Inflows
LEOFF 2 of Resources of Resources
Differences between expected and actual experience $ 5,366,935 $ (108,098)
Net difference between projected and actual investment earnings on
pension plan investments - (2,780,197)
Changes of assumptions 3,356,326 (1,079,270)
Changes in proportion share 516,329 (1,898,738)
Contributions subsequent to the measurement date 666,547 -
TOTAL $ 9,906,137 $ (5,866,303)
Deferred Outflows Deferred Inflows
Old Fire Pension of Resources of Resources
Differences between expected and actual experience $ - $ -
Net difference between projected and actual investment earnings on
pension plan investments - (207,347)
Changes of assumptions - -
Changes in proportion share - -
Contributions subsequent to the measurement date - -
TOTAL $ - $ (207,347)
TOTAL DEFERRED OUTFLOWS Deferred Outflows Deferred Inflows
AND INFLOWS FOR ALL PLANS of Resources of Resources
Differences between expected and actual experience $ 6,549,392 $ (172,957)
Net difference between projected and actual investment earnings on
pension plan investments (5,590,508)
Changes of assumptions 5,793,433 (1,610,464)
Changes in proportion share 587,729 (2,998,331)
Contributions subsequent to the measurement date 1,670,387 -
TOTAL $ 14,600,941 $ (10,372,260)
City of Pasco, Washington 2023 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, 2024. Other amounts reported as deferred outflows and deferred
inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended
December 31: PERS 1 PERS 2/3 LEOFF 1 LEOFF 2
2024 $ (192,412) $ (1,228,949) $ (90,852) $ (1,240,084)
2025 (241,980) (1,440,397) (114,008) (1,689,049)
2026 149,201 1,607,645 70,723 2,267,139
2027 2,381 466,430 1,629 742,969
2028 - 462,671 - 810,182
Thereafter - (59,729) - 2,482,130
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 annually 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
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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.
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, 2023, the benefit terms covered the following employees:
Category Count
Inactive employees, spouses, or beneficiaries currently receiving benefit payments: 6
Inactive employees entitled to but not yet receiving benefit payments: -
Active employees -
Total 6
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: $123,869
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, 2023 the Fire Pension Plan had the following investments, reported at fair market
value.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Federal Agency $ 2,718
Mutual Funds $ 3,732,144
Rate of Return. For the year ended December 31, 2023, the annual money-weighted rate of
return on pension plan investments, net of pension plan investment expense, was 24.10%. The
money-weighted rate of return expresses investment performance, net of investment expense,
adjusted for the changing amount actually invested.
Actuarial Assumptions: The total pension liability in the December 31, 2023 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:
Fiduciary Net Position. The components of the net pension liability of the City on December
31, 2023, were as follows:
Total Pension Liability (Asset)
1% Decrease
Current Discount
Rate 1% Increase
6.00% 7.00% 8.00%
$ 1,121,383 $ 1,035,086 $ 959,711
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Net Pension Liability (Asset)
1% Decrease
Current Discount
Rate 1% Increase
6.00% 7.00% 8.00%
$ (3,338,789) $ (3,425,086) $ (3,500,461)
The following table presents the changes in Net Pension Liability for year ending December 31,
2023.
Deferred Outflows of Resources and Deferred Inflows of Resources
Total Pension Liability $ 1,035,086
Plan Fiduciary Net Position 4,460,172
Net Pension Liability (Asset) $ (3,425,086)
Plan Fiduciary Net Position as a
% of Total Pension Liability
430.90%
Deferred
Outflows Deferred Inflows
Firemen's Pension Plan of Resources of Resources
Difference between expected and actual
experience
$ - $ -
Changes of assumptions - -
Net difference between projected and actual
earnings on pension plan investments - $ (207,347)
Contributions subsequent to the measurement
date - -
TOTAL $ - $ (207,347)
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
On December 31, 2023, the City recognized a pension expense of (-$208,968). The City reported
deferred outflows of resources and deferred inflows of resources related to the Fire Pension Plan
from the following sources:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in the pension expense as follows:
Year ended
December 31: Amount
2024 $ (80,879)
2025 (49,870)
2026 45,903
2027 (122,501)
2028 -
Thereafter -
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.
Changes in the Net Pension Liability
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balances at January 1, 2023 $ 939,198 $ 3,567,748 $ (2,628,550)
Changes for the year:
Service Cost - - -
Interest 62,545 - 62,545
Differences between expected and
actual experience 57,649 57,649
Change in assumptions 67,103 - 67,103
Net investment income - 863,275 (863,275)
Employer Contributions - 123,869 (123,869)
Benefit payments (91,409) (91,409) -
Administrative expense - (3,311) 3,311
Other changes - - -
Net changes 95,888 892,424 (796,536)
Balances at December 31, 2023 $ 1,035,086 $ 4,460,172 $ (3,425,086)
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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 2023:
LEOFF 1 – Postemployment Healthcare Plan
In addition to the pension benefits outlined in Note 14, 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.
Employees covered by benefit terms: At December 31, 2023, the following employees were
covered by the benefit terms:
Category Count
Inactive employees, spouses, or beneficiaries currently receiving benefit payments:30
Inactive employees entitled to but not yet receiving benefit payments: -
Active employees -
Total 30
Aggregate OPEB Amounts - All Plans
OPEB Liabilities $ 6,686,411
OPEB Assets (4,164,327)
Deferred Outflows of Resources -
Deferred Inflows of Resources 191,137
OPEB Expense $ (1,753,146)
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Contributions: The City pays benefits as they come due.
Contributions rate: Benefits Due
Reporting period contributions: $ 525,888
Net OPEB Liability: The City’s total OPEB liability was valued as of December 31, 2023 and
was used to calculate the total OPEB liability measured as of December 31, 2023.
Actuarial Assumptions: The total OPEB liability in the December 31, 2023 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified:
Healthcare cost trend rates
Discount Rate: 3.77%
Inflation: 2.75%
Salary Increases: n/a
Healthcare cost trend rates
Pre-Medicare: n/a
Medicare: 4.90%*
Mortality Rates 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.
Discount Rate: The discount rate used to measure the total OPEB liability was 3.77%. 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.
*Trending down to 4.04% over 51 years. Applies to calendar years.
Trust Assets: There are no assets accumulated in a trust that meets the criteria in paragraph 4 of
GASB 75 to pay related benefits.
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 (2.77%) or one percentage point higher (4.77%) follows:
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The
healthcare trend for this valuation started at 4.90% and decreased to 4.04% over 51 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 healthcare cost trend rates that are one percentage point lower (3.90%) or
one percentage point higher (5.90%) than current healthcare cost trend rates follows:
Total OPEB Liability (asset)
3.90% 4.90% 5.90%
$ 6,236,618 $ 6,686,441 $ 7,185,703
Changes in the Total OPEB Liability
The changes in total OPEB liability for 2023 are presented in the following table.
Plan Fiduciary Net Total OPEB
Total OPEB Position Liability
Liability (a)(b)(c) = (a)-(b)
Balances at January 1, 2023 8,499,941$ -$ 8,499,941$
Changes for the year:
Service Cost 27,600 - 27,600
Interest 334,717 - 334,717
Changes of Benefit Terms -
Differences Between Expected and
Actual Experience (1,775,850) (1,775,850)
Changes in Assumptions 125,891 125,891
Benefit payments (525,888) (525,888)
Net changes (1,813,530) - (1,813,530)
Balance as of December 31, 2023 6,686,411$ - 6,686,411
Schedule of changes in the Total OPEB Liability
Total OPEB Liability (asset)
1% Decrease Current Rate 1% Increase
2.77% 3.77% 4.77%
$ 7,231,260 $ 6,686,411 $ 6,206,457
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
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 2023.
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 eli gible
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, 2023 (the census date), the benefit terms
covered the following employees:
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
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.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Net OPEB Liability: The City's total OPEB liability was valued as of December 31, 2023, and
was used to calculate the net OPEB liability measured as of December 31, 2023.
Actuarial Assumptions: The total OPEB liability in the December 31, 2023 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified:
Measurement Date: December 31, 2023
Discount Rate: 7.00%
Investment Rate of Return: 7.00%
Inflation: 2.75%
Healthcare cost trend rates:
Pre-Medicare: n/a
Medicare: 4.90%*
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 none 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%.
*Trending down to 4.04% over 51 years. Applies to calendar years.
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
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
were calculated using a discount rate that is one percentage point lower (6.00%) or one percentage
point higher (8.00%) follows:
Total OPEB Liability (Asset)
1% Decrease
Current Discount
Rate 1% Increase
6.00% 7.00% 8.00%
$ 529,761 $ 507,010 $ 486,077
Net OPEB Liability (Asset) $ (4,141,576) $ (4,164,327) $ (4,185,260)
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The healthcare
trend for this valuation started at 4.90% and decreased to 4.04% over 51 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 healthcare cost trend rates that are one percentage point lower (3.90%) or one percentage
point higher (5.90%) than current healthcare cost trend rates follows:
Total OPEB Liability (Asset)
1% Decrease
Current Discount
Rate 1% Increase
3.90% 4.90% 5.90%
$ 487,806 $ 507,010 $ 527,503
Net OPEB Liability (Asset) $ (4,183,531) $ (4,164,327) $ (4,143,834)
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Changes in the Net OPEB Liability
The changes in net OPEB liability for 2023 are presented in the following table.
Changes in the Net OPEB Liability
Total
OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability
(a) (b) (c) = (a)-(b)
Balances at January 1, 2023 $ 594,768 $ 4,078,039 $ (3,483,271)
Changes for the year:
Service Cost
- - -
Interest
38,570 - 38,570
Differences between expected and
actual experience
(39,201)
(39,201)
Change in assumptions 413 -
413
Net investment income
- 681,964
(681,964)
Contributions
- - -
Benefit payments
(87,540) (87,540) -
Administrative expense
- (1,126) 1,126
Other changes
- - -
Net changes
(87,758) 593,298 (681,056)
Balances at December 31, 2023 $ 507,010 $ 4,671,337 $ (4,164,327)
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
For the report year ended December 31, 2023, the City recognized an OPEB expense of
($465,504). The City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Old Firemen's Plan Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience $ - $ -
Changes in Assumptions - -
Net difference between projected and actual
investment earnings on pension plan investments - (191,137)
TOTAL $ - $ (191,137)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Year Ended
December 31 Amount
2024 (84,413)
2025 (86,290)
2026 59,486
2027 (79,920)
2028 -
Remaining -
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.
Liability Amount
Current OPEB Liability $ 83,584
Non-Current OPEB Liability $ 423,426
Total OPEB Liability $ 507,010
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.
City of Pasco, Washington 2023 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
In 2022, a local improvement district (LID) was formed to construct sewer collection
infrastructure in an urban growth area which covers approximately 1,000 acres. A bond
anticipation note to fund project construction was issued March 14, 2024 for approximately
$20.3M.
In 2022, City Council approved the formation of a Tax Incremental Financing Area (TIF) in an
undeveloped area of northwest Pasco, Broadmoor. Planning has been ongoing since inception of
the TIF to identify appropriate project timing and related debt issuance. Creation of the
Broadmoor TIF Area allows for debt issuance in the amount of $39M that will subsequently
assign the incremental increase in property tax collections to support debt service payments for
25 years. As of completion of this report, the City is expected to finalize debt issuance in the
amount of $24M mid-July 2024.
On March 4, 2024, the City approved acceptance of two Department of Ecology loans for the
purpose of Wastewater Treatment Plant Phase 2 Improvements and Process Water Reuse Facility
Phase 2 Improvements, in the amount of $26.3M and $35M, respectively. Both state loans have
an interest rate of 1.20% and a 20-year repayment period.
Name of Investment Type Balance as of
12/31/23
Rating by
Morningstar
2023 YTD
Return
Washington Mutual Investors Fund-A Mutual Fund $4,582,749 Gold 16.91%
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
NOTE 18: PRIOR PERIOD ADJUSTMENT
The following table itemizes the prior period adjustments made in 2023, along with the purposes
for the adjustments:
Purpose for
Adjustment (Decrease)Increase
Adjustment to Fund
Balance/ Net Position
Governmental Funds:
General Fund 1 - 56,805 56,805
General Fund 2 - 226,812 226,812
General Fund 3 (30,163) - (30,163)
Arterial Fund 4 - 35,225 35,225
I82 Impact Fund 4 - 97,019 97,019
Street Overlay Fund 4 - 55,409 55,409
Real Estate Excise Tax Fund 4 - 77,214 77,214
Construction Fund 5 (451,419) - (451,419)
Total Governmental Funds (481,582) 548,484 66,902
Business-Type Funds:
Water/Sewer Utility Fund 6 (121,446) - (121,446)
Water/Sewer Utility Fund 7 (372,662) - (372,662)
Total Business-Type Funds:(494,108) - (494,108)
Government-wide Financial Statements
Statement of Activities 9 - 2,971,949 2,971,949
Statement of Net Position 8 (243,013) 39,270 (203,743)
Total prior period adjustments - all funds 1,753,246 3,559,703 2,341,000
Prior Period Adjustment
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
NOTE 19: 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, 2023, the reported estimated liability for
these costs was $10,832. 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.
Purpose for prior period adjustments:
2. Prior Year Gambling Taxes for December 2022 was not accrued for 2022 and recorded as 2023 revenue.
3. 4th quarter expense for Municipal Court was not accrued for 2022 and recorded as 2023 expense.
4. Grant reimbursements were not accrued and recorded as 2023 revenue.
7. Customer in PWRF were billed twice in 2022 in the amount of $372,662.
9. In 2022, an internal fund loan between Governmental and Business-Type was eliminated on the
Governmentwide Statements.
8. Expenses related to Sylvester Park were capitalized but were determined to be repair and maintenance
costs. As a result, $39,270 was removed from CWIP and expensed. Costs totaling $243,013 for the
Police Department Training Center were expenses in 2022, but were determined to be capital related.
This resulted in an increase to capital asset category of Buildings and reduction in expense.
6. In 2022 Washington State TIB grant was billed & paid in error for Lewis Street Overpass in the
amount of $121,446 in the utilities fund.
1. Revenue from the Municipal Court's Redflex (Red Light Camera) Program was not accrued for 2022
and recorded as 2023 revenue.
5. Construction fund Invoices paid in 2021-2022 for Lewis Street Overpass project miscoded to utilities
in the amount of ($529,254). Washington State TIB grant was not billed for Lewis Street Overpass in the
amount of $77,835 due to miscoding of invoices.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
REQUIRED SUPPLEMENTARY INFORMATION
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Old Fire OPEB Fund
A schedule of contributions for the Old Fire OPEB Fund is not included because the plan is fully
funded and there have been no contributions for the past five years. The OPEB plan's fiduciary
net position is projected to have sufficient funds to pay all projected benefit payment for current
plan members. Therefore, there are no future projected contributions.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
LEOFF 1 OPEB
2017 2018 2019 2020 2021 2022 2023
547,515$ 609,121$ 633,129$ 526,399$ 508,935$ 518,794$ 525,888$
547,515 609,121 633,129 526,399 508,935 518,794 525,888
-$ -$ -$ -$ -$ -$ -$
152,318$ 158,030$ 168,152$ 174,458$ 177,000$ 177,000$ 84,565$
359% 385% 377% 302% 288%293%622%
Entry Age
Not Applicable
December 31, 2023
3.77%
4.90%
Schedule of City Contributions
LEOFF 1 OPEB
For the year ended December 31, 2023
Last 10 Fiscal Years*
*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.
Actuarial Cost Method
Asset Valuation Method
Measurement Date
Discount Rate
Healthcare Cost Trend
Contribution in relation to the
actuarially determined contribution
Contribution deficiency (excess)
Covered Payroll
Contribution as a % of Covered
Notes to Schedule
Actuarially Determined
2017 2018 2019 2020 2021 2022 2023
Total OPEB liability - beginning 16,078,996$ 16,179,101$ 16,223,295$ 12,231,327$ 12,969,448$ 10,605,392$ 8,499,941$
Service cost 89,165 95,746 99,097 61,124 73,652 39,806 27,600
Interest 556,341 557,569 560,203 330,804 255,773 191,098 334,717
Changes of benefit terms - - - - - - -
Differences between expected and actual experience - - (2,410,901) (84,229) (976,545) (82,429) (1,775,850)
Changes of assumptions - - (1,607,238) 956,821 (1,208,001) (1,735,132) 125,891
Benefit payments (545,401) (609,121) (633,129) (526,399) (508,935) (518,794) (525,888)
Other changes - - -
Total OPEB liability - ending 16,179,101 16,223,295 12,231,327 12,969,448 10,605,392 8,499,941 6,686,411
Covered-employee payroll 152,318$ 158,030$ 168,152$ 174,458$ 177,000$ 177,000$ 84,565$
10621.9%10266.0%7274.0%7434.1%5991.7%4802.2%7906.8%
Notes to Schedule:
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75.
*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 Total OPEB Liability and Related Ratios
LEOFF 1 OPEB
For the year ended December 31, 2023
Last 10 Fiscal Years*
Total OPEB liability as a % of covered-employee
payroll
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
State Plans
PERS PLAN 1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Employer's percentage of the net pension liability 0.097647%0.102321%0.098322%0.099661%0.093918%0.091766%0.086902%0.090217%0.093487%0.109828%
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$ 2,603,021$ 2,507,079$
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 16,976,408 20,838,451
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%15.33%12.03%
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%76.56%80.16%
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%0.121879%0.141629%
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) (4,520,225) (5,804,924)
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 16,976,408 20,838,451
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%-26.63%-27.86%
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%106.73%107.02%
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%0.067125%0.067329%
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) (1,925,556) (1,998,341)
Covered payroll 219,984 207,267 226,769 197,219 162,162 163,046 181,036 197,253 183,808 85,995
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%-1047.59%-2323.79%
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%169.62%175.99%
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%0.486887%0.547781%
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) (13,232,118) (13,139,064)
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$ 20,108,121$ 24,344,872$
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%-65.80%-53.97%
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%116.09%113.17%
Notes to Schedule:
*Until a full 10-year trend is compiled, only information for those years available is presented.
Schedule of Proportionate Share of the Net Pension Liability/(Asset)
As of June 30
Last 10 Fiscal Years*
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
PERS PLAN 1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Statutorily or contractually required contributions 31,484$ 16,252$ 500,426$ 614,166$ 658,434$ 651,374$ 665,510$ 641,234$ 637,461$ 706,753$
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) (637,461) (706,753)
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 16,976,408 20,838,451
Contributions as a percentage of covered payroll 0.29%0.14%4.40%4.91%5.06%5.11%4.90%4.29%3.75%3.39%
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 1,079,226 1,325,339
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) (1,079,226) (1,325,339)
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 16,976,408 20,838,451
Contributions as a percentage of covered payroll 9.21%10.17%5.47%6.82%7.68%7.72%8.10%7.13%6.36%6.36%
LEOFF 2
Statutorily or contractually required contributions 549,396 635,688 660,156 763,912 937,526 909,786 965,108 1,064,529 1,075,457 1,299,855
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) (1,075,457) (1,299,855)
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$ 20,108,121$ 24,344,872$
Contributions as a percentage of covered payroll 5.23%5.23%5.23%5.33%5.47%5.29%5.39%5.61%5.35%5.34%
Notes to Schedule:
*Until a full 10-year trend is compiled, only information for those years available is presented.
Schedue of Employer Contributions
As of December 31, 2023
Last 10 Fiscal Years*
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Old Fire Pension
2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Pension Liability
Service Cost -$ -$ -$ -$ - - - - -
Interest 82,477 79,996 77,207 87,555 75,910 85,837 83,760 63,731 62,545
Changes of benefit terms - - - - - - - -
Differences between expected and actual experience - - 79,758 (2,791) 189,364 (21,644) (248,065) 4,915 57,649
Changes of assumptions - - 9,808 - (2,010) - (43,633) - 67,103
Benefit payments, including refunds of employee contributions (116,770) (118,053) (120,503) (128,399) (131,781) (111,111) (76,598) (79,788)(91,409)
Net change in total pension liability (34,293) (38,057) 46,270 (43,635) 131,483 (46,918) (284,536) (11,142)95,888
Total pension liability - beginning 1,220,026 1,185,733 1,147,676 1,193,946 1,150,311 1,281,794 1,234,876 950,340 939,198
Total pension liability - ending 1,185,733$ 1,147,676$ 1,193,946$ 1,150,311$ 1,281,794$ 1,234,876$ 950,340$ 939,198$ 1,035,086$
Plan Fiduciary Net Position
Net investment income (19,689)$ 267,948$ 384,118$ (139,435)$ 515,983$ 364,053$ 714,634$ (554,348)$ 863,275$
Contributions- employer 54,506 58,193 63,503 73,414 81,458 89,252 98,371 107,183 123,869
Contributions - employee - - - - - - - - -
Benefit payments, including refunds of employee contributions (116,770) (118,053) (120,503) (128,399) (131,781) (111,111) (76,598) (79,788)(91,409)
Administrative expense (3,398) (7,914) (5,870) (4,923) (1,689) (2,098) (3,465) (5,358)(3,311)
Net change in plan fiduciary net position (85,351) 200,174 321,248 (199,343) 463,971 340,096 732,942 (532,311) 892,424
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 4,100,059 3,567,748
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$ 3,567,748$ 4,460,172$
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)$ (2,628,550)$ (3,425,086)$
Plan fiduciary net position as a % of total pension liability 189.0%212.7%231.4%222.8%236.2%272.7%431.4%379.9%430.9%
Covered payroll - - - - - - - - -
Net pension liability as a % of covered payroll n/a n/a n/a n/a 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 68 for the fiscal year ending December 31, 2015.
Schedule of Changes in Net Pension Liability and Related Ratios
Fore the year ended December 31, 2023
Old Fire Pension
Last 10 Fiscal Years*
2015 2016 2017 2018 2019 2020 2021 2022 2023
Annual Money Weighted Rate of Return, Net of Investment Expense -0.86%12.14%15.94%-5.10%20.34%12.07%21.17%-13.48%24.10%
Old Fire Pension
For the year ended December 31, 2023
Last 10 Fiscal Years*
Schedule of Investment Returns
2015 2016 2017 2018 2019 2020 2021 2022 2023
Actuarially Determined Contribution (ADC)54,506$ 58,193$ 63,503$ 73,414$ 81,458$ 89,252$ 98,371$ 107,183 123,869
Less Contributions Made (54,506) (58,193) (63,503) (73,414) (81,458) (89,252) (98,371) (107,183) (123,869)
Contribution Deficiency (excess)- - - - - - - - -
Covered-Employee Payroll -$ -$ -$ -$ -$ -$ -$ -$ -$
Contributions as a percentage of covered employee payroll 0%0%0%0%0%0%0%0%0%
Notes to Schedule:
*Until a full 10-year trend is compiled, only information for those years available is presented.
Actuarial Cost Method: Entry-age normal, level percent of pay
Amortization Method: Closed period, level percent of pay
Amortization Period: 1 year
Inflation: 2.75%
Assumed Payroll Growth: 3.250%
Rate of Returen on Assets: 7.00%
Mortality Rate: CalPERS Rates
Retirement Rates: NA
Contributions came from State Fire Insurance Premiums
For the year ended December 31, 2023
Last 10 Fiscal Years*
Schedule of Contributions
Fire Pension Fund
City of Pasco, Washington 2023 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 Fund is a secondary funding source for the fire department. This fund is
supported through a monthly utility charge 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 2023 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 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 2023 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.
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 2023 Annual Comprehensive Financial Report
Debt service funds Permanent funds
Special revenue
funds
Total Nonmajor
Governmental Funds
ASSETS
Cash and cash equivalents 202,177$ 156,840$ 47,232,152$ 47,591,169$
Restricted cash
Program, grant, donation - - 138,397 138,397
Customer deposits - - 536,735 536,735
Unspent bond proceeds - - 580,120 580,120
Debt service 237,564 - - 237,564
Cemetery endowment - 580,526 - 580,526
Investments - - 1,282,883 1,282,883
Receivables
Taxes - - 644,930 644,930
Customer (net of allowances)- - 1,857,301 1,857,301
Interfund loans - current portion - - 17,636 17,636
Grants - - 597,310 597,310
Leases - - 3,027,087 3,027,087
Loans - - 462,146 462,146
Special assessments 656,857 - - 656,857
Due from other governments - - 418,787 418,787
Total assets 1,096,598 737,366 56,795,484 58,629,448
LIABILITIES
Accounts payable 2,905 - 1,165,513 1,168,418
Interfund loans payable 17,636 - - 17,636
Pay from restricted assets - Deposits - - 536,735 536,735
Due to other funds - - 547,400 547,400
Total liabilities 20,541 - 2,249,648 2,270,189
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Lease - - 3,027,087 3,027,087
Unavailable revenue-Special assessment 623,636 - - 623,636
Unavailable revenue - Other - - 601,345 601,345
Total deferred inflows of resources 623,636 - 3,628,432 4,252,068
Total liabilities and deferred inflows of
resources 644,177 - 5,878,080 6,522,257
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery perpetual fund - 580,526 - 580,526
Restricted
Capital improvements - - 10,514,624 10,514,624
Culture & Recreation - - 205,014 205,014
Debt Guarantee 452,422 - - 452,422
Economic development - - 1,413 1,413
Litter & housing abatement - - 323,662 323,662
Park development - - 3,757,829 3,757,829
Street and boulevard - - 6,969,054 6,969,054
Committed
Redflex - - 860,248 860,248
Special revenue funds - - 28,326,834 28,326,834
Unassigned - 156,840 (41,274) 115,566
Total fund balances (deficits)452,422$ 737,366$ 50,917,404$ 52,107,192$
Total liabilities and fund balances (deficits)1,096,599$ 737,366$ 56,795,484$ 58,629,449$
City of Pasco
Combining Governmental Balance Sheet
Nonmajor Governmental Funds
Summary by Fund Type
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Special revenue
funds Debt service funds Permanent funds
Total Nonmajor
Governmental Funds
REVENUES
Rent and leases 1,343,090$ -$ -$ 1,343,090$
Taxes 3,663,759 - - 3,663,759
Licenses and permits 333,989 - - 333,989
Intergovernmental 6,408,276 - - 6,408,276
Charges for service 15,528,705 - 25,955 15,554,660
Fines and forfeitures 203,221 - - 203,221
Investment income 1,045,062 13,500 19,988 1,078,550
Miscellaneous 260,377 125,839 - 386,216
Total revenues 28,786,479 139,339 45,943 28,971,761
EXPENDITURES
Current:
Public Safety 12,269,871 - - 12,269,871
Transportation 2,282,199 3,426 - 2,285,625
Natural & Economic Environment 8,397,495 - - 8,397,495
Cultural & Community 767,407 - - 767,407
Debt service:
Principal retirement 267,918 - - 267,918
Interest 260,977 85,717 - 346,694
Debt issue costs 9,280 - - 9,280
Capital outlay:
Public Safety 115,244 - - 115,244
Transportation 167,748 - - 167,748
Natural & Economic Environment 311,986 - - 311,986
Total expenditures 24,850,125 89,143 - 24,939,268
Excess (deficiency) of revenues
over expenditures 3,936,354 50,196 45,943 4,032,493
OTHER FINANCING SOURCES (USES)
Transfers in 3,036,040 - - 3,036,040
Transfers out (13,812,824) - - (13,812,824)
Issuance of long-term debt 1,134,000 - - 1,134,000
Premium on bonds issued 87,036 - - 87,036
Discount on bonds issued (5,557) - - (5,557)
Insurance recoveries 786,766 - - 786,766
Total other financing sources (uses)(8,774,539) - - (8,774,539)
SPECIAL ITEM
Prior Period Adjustment 264,867 - - 264,867
Total special items 264,867 - - 264,867
Net change in fund balances (4,573,318) 50,196 45,943 (4,477,179)
Fund balances - beginning 55,490,715 402,226 691,424 56,584,365
Fund balances - ending 50,917,397$ 452,422$ 737,367$ 52,107,186$
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, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
City Street Arterial Street
I-182 Traffic
Impact Street Overlay
Community
Development
Block Grant
ASSETS
Cash and cash equivalents 906,449$ 1,782,374$ 2,423,453$ 1,105,782$ 68$
Restricted cash
Program, grant, donation - - - - 133,215
Customer deposits 384,412 - - - -
Unspent bond proceeds - - - - 56,639
Investments 25,648 108,767 100,218 148,190 -
Receivables
Taxes 143,604 71,792 - - -
Customer (net of allowances)78,295 - - - -
Interfund loans - - - - -
Grants - - - - 283,003
Leases - - - - -
Loans - - - - 462,146
Due from other governments - - - - -
Total assets 1,538,408$ 1,962,933$ 2,523,671$ 1,253,972$ 935,071$
LIABILITIES
Accounts payable 90,952 - - - 25,453
Pay from restricted assets - Deposits 384,412 - - - -
Due to other funds - - - - 432,100
Total liabilities 475,364 - - - 457,553
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Lease - - - - -
Unavailable revenue-Other - - - - 462,146
Total deferred inflows of resources - - - - 462,146
Total liabilities and deferred inflows of resources 475,364 - - - 919,699
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery perpetual fund - - - - -
Restricted
Capital improvements - - - - 56,646
Culture & Recreation - - - - -
Debt Guarantee - - - - -
Economic development - - - - -
Litter & housing abatement - - - - -
Park development - - - - -
Street and boulevard - 1,102,685 2,523,671 1,253,972 -
Committed
Redflex - 860,248 - - -
Special revenue funds 1,063,044 - - - -
Unassigned - - - - (41,274)
Total fund balances (deficits)1,063,044$ 1,962,933$ 2,523,671$ 1,253,972$ 15,372$
Total liabilities and fund balances (deficits)1,538,408$ 1,962,933$ 2,523,671$ 1,253,972$ 935,071$
Combining Balance Sheet
City of Pasco
Nonmajor Special Revenue Funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
MLK
Community
Center Ambulance
City View
Cemetery
Boulevard
Perpetual
Maintenance
Athletics
Program Golf
ASSETS
Cash and cash equivalents 61,265$ 5,923,096$ 429,157$ 1,989,396$ 280,450$ 175,927$
Restricted cash
Program, grant, donation - - 247 - 4,935 -
Customer deposits - 144,187 - - - 600
Unspent bond proceeds - - - - - -
Debt service - - - - - -
Cemetery endowment - - - - - -
Investments - - - 81,694 - -
Receivables
Taxes - - - - - -
Customer (net of allowances)- 1,441,219 - - 21,051 103,890
Interfund loans - - - 17,636 - -
Grants - 314,307 - - - -
Leases 56,646 - - - - 1,548,620
Loans - - - - - -
Due from other governments - - - - - -
Total assets 117,911$ 7,822,809$ 429,404$ 2,088,726$ 306,436$ 1,829,037$
LIABILITIES
Accounts payable 7,632 382,501 35,151 - 26,230 75,050
Interfund loans payable - - - - - -
Pay from restricted assets - Deposits - 144,187 - - - 600
Due to other funds - - - - - -
Total liabilities 7,632 526,688 35,151 - 26,230 75,650
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Lease 56,646 - - - - 1,548,620
Unavailable revenue-Other - - 139,199 - - -
Total deferred inflows of resources 56,646 - 139,199 - - 1,548,620
Total liabilities and deferred inflows of resources 64,278 526,688 174,350 - 26,230 1,624,270
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery perpetual fund - - - - - -
Restricted
Capital improvements - - - - - -
Culture & Recreation - - 247 - - 204,767
Debt Guarantee - - - - - -
Economic development - - - - - -
Litter & housing abatement - - - - - -
Park development - - - - - -
Street and boulevard - - - 2,088,726 - -
Committed
Redflex - - - - - -
Special revenue funds 53,633 7,296,121 254,807 - 280,206 -
Unassigned - - - - - -
Total fund balances (deficits)53,633$ 7,296,121$ 255,054$ 2,088,726$ 280,206$ 204,767$
Total liabilities and fund balances (deficits)117,911$ 7,822,809$ 429,404$ 2,088,726$ 306,436$ 1,829,037$
City of Pasco
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Animal Control
Senior
Center
Multi Modal
Facility
School Impact
Fees
Rivershore Trail &
Marina Maintenance
ASSETS
Cash and cash equivalents 29$ 4,853$ 528,534$ 173,167$ 14,434$
Restricted cash
Program, grant, donation - - - - -
Customer deposits - 1,000 6,536 - -
Unspent bond proceeds - - - - -
Debt service - - - - -
Cemetery endowment - - - - -
Investments - - - - -
Receivables
Taxes - - - - -
Customer (net of allowances)- - 5,880 - -
Interfund loans - - - - -
Grants - - - - -
Leases - - 65,119 - 147,299
Loans - - - - -
Due from other governments 314,412 - - - -
Total assets 314,441 5,853 606,069 173,167 161,733
LIABILITIES
Accounts payable 113,477 4,140 2,260 97,869 -
Interfund loans payable - - - - -
Pay from restricted assets - Deposits - 1,000 6,536 - -
Due to other funds 115,300 - - - -
Total liabilities 228,777 5,140 8,796 97,869 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Lease - - 65,119 - 147,299
Unavailable revenue-Other - - - - -
Total deferred inflows of resources - - 65,119 - 147,299
Total liabilities and deferred inflows of resources 228,777 5,140 73,915 97,869 147,299
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery perpetual fund - - - - -
Restricted
Capital improvements - - - - -
Culture & Recreation - - - - -
Debt Guarantee - - - - -
Economic development - - - - -
Litter & housing abatement - - - - -
Park development - - - - -
Street and boulevard - - - - -
Committed
Redflex - - - - -
Special revenue funds 85,664 713 532,154 75,298 14,434
Unassigned - - - -
Total fund balances (deficits)85,664$ 713$ 532,154$ 75,298$ 14,434$
Total liabilities and fund balances (deficits)314,441$ 5,853$ 606,069$ 173,167$ 161,733$
City of Pasco
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Special Lodging
Assessment Litter Abatement
Revolve
Abatement
TRAC/HAPO
Development &
Operating Park Development
ASSETS
Cash and cash equivalents 49,080$ 74,254$ 60,225$ 133,384$ 3,599,190$
Restricted cash
Program, grant, donation - - - - -
Customer deposits - - - - -
Unspent bond proceeds - - - - -
Debt service - - - - -
Cemetery endowment - - - - -
Investments - - - - 158,639
Receivables
Taxes 78,467 - - - -
Customer (net of allowances)- - 206,966 - -
Interfund loans - - - - -
Grants - - - - -
Leases - - - - -
Loans - - - - -
Due from other governments - - 104,375 -
Total assets 127,547$ 74,254$ 267,191$ 237,759$ 3,757,829$
LIABILITIES
Accounts payable 126,134 82 17,701 - -
Interfund loans payable - - - - -
Pay from restricted assets - Deposits - - - - -
Due to other funds - - - - -
Total liabilities 126,134 82 17,701 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Lease - - - - -
Unavailable revenue-Other - - - - -
Total deferred inflows of resources - - - - -
Total liabilities and deferred inflows of resources 126,134 82 17,701 - -
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery perpetual fund - - - - -
Restricted
Capital improvements - - - - -
Culture & Recreation - - - - -
Debt Guarantee - - - - -
Economic development 1,413 - - - -
Litter & housing abatement - 74,172 249,490 - -
Park development - - - - 3,757,829
Street and boulevard - - - - -
Committed
Redflex - - - - -
Special revenue funds - - - 237,759 -
Unassigned - - - - -
Total fund balances (deficits)1,413$ 74,172$ 249,490$ 237,759$ 3,757,829$
Total liabilities and fund balances (deficits)127,547$ 74,254$ 267,191$ 237,759$ 3,757,829$
City of Pasco
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Capital
Improvements
Economic
Development
Stadium/
Convention Center
Hotel/Motel
Excise Tax
Total Special
Revenue Funds
ASSETS
Cash and cash equivalents 9,235,269$ 16,015,197$ 556,936$ 1,710,183$ 47,232,152$
Restricted cash
Program, grant, donation - - - - 138,397
Customer deposits - - - - 536,735
Unspent bond proceeds - - 523,481 - 580,120
Investments 481,140 178,587 - - 1,282,883
Receivables
Taxes 218,088 - - 132,979 644,930
Customer (net of allowances)- - - - 1,857,301
Interfund loans - - - - 17,636
Grants - - - - 597,310
Leases - 1,209,403 - - 3,027,087
Loans - - - - 462,146
Due from other governments - - - - 418,787
Total assets 9,934,497 17,403,187 1,080,417 1,843,162 56,795,484
LIABILITIES
Accounts payable - 122,519 423 37,943 1,165,513
Pay from restricted assets - Deposits - - - - 536,735
Due to other funds - - - - 547,400
Total liabilities - 122,519 423 37,943 2,249,648
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Lease - 1,209,403 - - 3,027,087
Unavailable revenue-Other - - - - 601,345
Total deferred inflows of resources - 1,209,403 - - 3,628,432
Total liabilities and deferred inflows of resources - 1,331,922 423 37,943 5,878,080
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery perpetual fund - - - - -
Restricted
Capital improvements 9,934,497 - 523,481 - 10,514,624
Culture & Recreation - - - - 205,014
Debt Guarantee - - - - -
Economic development - - - - 1,413
Litter & housing abatement - - - - 323,662
Park development - - - - 3,757,829
Street and boulevard - - - - 6,969,054
Committed
Redflex - - - - 860,248
Special revenue funds - 16,071,265 556,513 1,805,219 28,326,834
Unassigned - - - - (41,274)
Total fund balances (deficits)9,934,497$ 16,071,265$ 1,079,994$ 1,805,219$ 50,917,404$
Total liabilities and fund balances (deficits)9,934,497$ 17,403,187$ 1,080,417$ 1,843,162$ 56,795,484$
City of Pasco
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
City Street Arterial Street I-182 Traffic Impact Street Overlay
Community
Development Block
Grant
REVENUES
Rent and leases -$ -$ -$ -$ -$
Taxes - - - - -
Licenses and permits 333,989 - - - -
Intergovernmental 993,622 495,653 - - 1,223,085
Charges for service 625,233 49,556 449,859 - -
Fines and forfeitures 25,574 - - - -
Investment income - 74,754 68,825 100,340 -
Miscellaneous 15,821 - - - 400
Total revenues 1,994,239 619,963 518,684 100,340 1,223,485
EXPENDITURES
Current:
Public Safety - - - - -
Transportation 2,176,712 3,143 2,619 27,616 -
Natural & Economic Environment - - - - 751,292
Cultural & Community - - - - -
Debt service:
Principal retirement - - - - 190,000
Interest - - - - 180,622
Debt issue costs - - - - -
Capital outlay:
Public Safety - - - - -
Transportation 167,748 - - - -
Natural & Economic Environment - - - - -
Total expenditures 2,344,460 3,143 2,619 27,616 1,121,914
Excess (deficiency) of revenues
over expenditures (350,221) 616,820 516,065 72,724 101,571
OTHER FINANCING SOURCES (USES)
Transfers in 281,719 43,587 - 1,129,272 225
Transfers out (241) (1,239,657) (448,295) (3,689,087) (331,148)
Issuance of long-term debt - - - - -
Premium on bonds issued - - - - -
Discount on bonds issued - - - - -
Insurance recoveries 11,065 - - - -
Total other financing sources (uses)292,543 (1,196,070) (448,295) (2,559,815) (330,923)
SPECIAL ITEM
Prior Period Adjustment - 35,225 97,019 55,409 -
Total special items - 35,225 97,019 55,409 -
Net change in fund balances (57,678) (544,025) 164,789 (2,431,682) (229,352)
Fund balances - beginning 1,120,720 2,506,957 2,358,883 3,685,653 244,727
Fund balances - ending 1,063,042$ 1,962,932$ 2,523,672$ 1,253,971$ 15,375$
City of Pasco
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special revenue funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
MLK Community
Center Ambulance
City View
Cemetery
Boulevard
Perpetual
Maintenance Athletics Program
REVENUES
Rent and leases 48,699$ 14,896$ -$ -$ -$
Taxes - - - - -
Licenses and permits - - - - -
Intergovernmental - 3,059,275 - - -
Charges for service 15,774 8,123,727 336,875 49,400 116,739
Fines and forfeitures - - - - -
Investment income 1,175 1,281 12,785 56,075 6,371
Miscellaneous - 43,926 30 710 80,374
Total revenues 65,648 11,243,105 349,690 106,185 203,484
EXPENDITURES
Current:
Public Safety - 12,269,871 - - -
Transportation - - - 1,848 -
Natural & Economic Environment - - 450,271 - -
Cultural & Community 140,893 - - - 127,026
Debt service:
Principal retirement - 27,968 - - -
Interest - 5,790 - - -
Debt issue costs - - - - -
Capital outlay:
Public Safety - 115,244 - - -
Transportation - - - - -
Natural & Economic Environment - - - - -
Total expenditures 140,893 12,418,873 450,271 1,848 127,026
Excess (deficiency) of revenues
over expenditures (75,245) (1,175,768) (100,581) 104,337 76,458
OTHER FINANCING SOURCES (USES)
Transfers in 72,896 570,000 - - -
Transfers out - - - (142,750) -
Issuance of long-term debt - - - - -
Premium on bonds issued - - - - -
Discount on bonds issued - - - - -
Insurance recoveries - - 2,942 - -
Total other financing sources (uses)72,896 570,000 2,942 (142,750) -
SPECIAL ITEM
Prior Period Adjustment - - - - -
Total special items - - - - -
Net change in fund balances (2,349) (605,768) (97,639) (38,413) 76,458
Fund balances - beginning 55,983 7,901,889 352,693 2,127,140 203,746
Fund balances - ending 53,634$ 7,296,121$ 255,054$ 2,088,727$ 280,204$
City of Pasco
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special revenue funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Golf Animal Control Senior Center Multi Modal Facility School Impact Fees
REVENUES
Rent and leases 74,925$ -$ 2,226$ 85,119$ -$
Taxes - - - - -
Licenses and permits - - - - -
Intergovernmental - - - 104,382 -
Charges for service - 1,542,477 11,471 - 2,401,100
Fines and forfeitures - - - - -
Investment income 29,639 - - 14,291 -
Miscellaneous 16,050 43,808 148 - -
Total revenues 120,614 1,586,285 13,845 203,792 2,401,100
EXPENDITURES
Current:
Public Safety - - - - -
Transportation - - - 64,432 -
Natural & Economic Environment - 2,231,945 - - 2,392,342
Cultural & Community 88,631 - 178,090 - -
Debt service:
Principal retirement - - - - -
Interest - - - - -
Debt issue costs - - - - -
Capital outlay:
Public Safety - - - - -
Transportation - - - - -
Natural & Economic Environment - - - - -
Total expenditures 88,631 2,231,945 178,090 64,432 2,392,342
Excess (deficiency) of revenues
over expenditures 31,983 (645,660) (164,245) 139,360 8,758
OTHER FINANCING SOURCES (USES)
Transfers in - 730,260 189,667 - -
Transfers out - - - - -
Issuance of long-term debt - - - - -
Premium on bonds issued - - - - -
Discount on bonds issued - - - - -
Insurance recoveries - - - - -
Total other financing sources (uses)- 730,260 189,667 - -
SPECIAL ITEM
Prior Period Adjustment - - - - -
Total special items - - - - -
Net change in fund balances 31,983 84,600 25,422 139,360 8,758
Fund balances - beginning 172,785 1,064 (24,709) 392,793 66,540
Fund balances - ending 204,768$ 85,664$ 713$ 532,153$ 75,298$
City of Pasco
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special revenue funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Rivershore Trail &
Marina Maintenance
Special Lodging
Assessment Litter Abatement Revolve Abatement
TRAC/HAPO
Development &
Operating
REVENUES
Rent and leases 27,281$ -$ -$ -$ -$
Taxes - - - - -
Licenses and permits - - - - -
Intergovernmental 10,289 - - - -
Charges for service - 554,601 12,500 115,650 -
Fines and forfeitures - - - 177,647 -
Investment income 1,790 1,618 1,988 34,921 5,915
Miscellaneous - - - - 58,145
Total revenues 39,360 556,219 14,488 328,218 64,060
EXPENDITURES
Current:
Public Safety - - - - -
Transportation - - 5,829 - -
Natural & Economic Environment - 556,219 - 588,206 -
Cultural & Community 20,731 - - - 200,096
Debt service:
Principal retirement - - - - -
Interest - - - - -
Debt issue costs - - - - -
Capital outlay:
Public Safety - - - - -
Transportation - - - - -
Natural & Economic Environment - - - - -
Total expenditures 20,731 556,219 5,829 588,206 200,096
Excess (deficiency) of revenues
over expenditures 18,629 - 8,659 (259,988) (136,036)
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out - - - - -
Issuance of long-term debt - - - - -
Premium on bonds issued - - - - -
Discount on bonds issued - - - - -
Insurance recoveries - - - - -
Total other financing sources (uses)- - - - -
SPECIAL ITEM
Prior Period Adjustment - - - - -
Total special items - - - - -
Net change in fund balances 18,629 - 8,659 (259,988) (136,036)
Fund balances - beginning (4,195) 1,413 65,512 509,478 373,795
Fund balances - ending 14,434$ 1,413$ 74,171$ 249,490$ 237,759$
City of Pasco
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special revenue funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Park Development
Capital
Improvements
Economic
Development
Stadium/Convention
Center
Hotel/Motel Excise
Tax
Total Nonmajor
Special revenue
funds
REVENUES
Rent and leases -$ -$ 1,046,434$ 43,510$ -$ 1,343,090$
Taxes - 2,649,115 - - 1,014,644 3,663,759
Licenses and permits - - - - - 333,989
Intergovernmental - - 521,970 - - 6,408,276
Charges for service 1,123,743 - - - - 15,528,705
Fines and forfeitures - - - - - 203,221
Investment income 111,099 339,553 129,369 17,887 35,386 1,045,062
Miscellaneous - - 965 - - 260,377
Total revenues 1,234,842 2,988,668 1,698,738 61,397 1,050,030 28,786,479
EXPENDITURES
Current:
Public Safety - - - - - 12,269,871
Transportation - - - - - 2,282,199
Natural & Economic Environment - 20,734 1,116,138 11,441 278,907 8,397,495
Cultural & Community 11,940 - - - - 767,407
Debt service:
Principal retirement - - - 49,950 - 267,918
Interest - - - 74,565 - 260,977
Debt issue costs - - - 9,280 - 9,280
Capital outlay:
Public Safety - - - - - 115,244
Transportation - - - - - 167,748
Natural & Economic Environment - - 311,986 - - 311,986
Total expenditures 11,940 20,734 1,428,124 145,236 278,907 24,850,125
Excess (deficiency) of revenues
over expenditures 1,222,902 2,967,934 270,614 (83,839) 771,123 3,936,354
OTHER FINANCING SOURCES (USES)
Transfers in - - 18,414 - - 3,036,040
Transfers out (997,403) (5,325,424) (480,000) (1,158,819) - (13,812,824)
Issuance of long-term debt - - - 1,134,000 - 1,134,000
Premium on bonds issued - - - 87,036 - 87,036
Discount on bonds issued - - - (5,557) - (5,557)
Insurance recoveries - - 772,759 - - 786,766
Total other financing sources (uses)(997,403) (5,325,424) 311,173 56,660 - (8,774,539)
SPECIAL ITEM
Prior Period Adjustment - 77,214 - - - 264,867
Total special items - 77,214 - - - 264,867
Net change in fund balances 225,499 (2,280,276) 581,787 (27,179) 771,123 (4,573,318)
Fund balances - beginning 3,532,329 12,214,772 15,489,478 1,107,173 1,034,096 55,490,715
Fund balances - ending 3,757,828$ 9,934,496$ 16,071,265$ 1,079,994$ 1,805,219$ 50,917,397$
City of Pasco
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special revenue funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Local Improv. District
Guaranty
Local Improvement
District Loans
Total Nonmajor Debt
service funds
ASSETS
Cash and cash equivalents 202,177$ -$ 202,177$
Restricted cash
Debt service 230,729 6,835 237,564
Receivables
Special assessments - 656,857 656,857
Total assets 432,906$ 663,692$ 1,096,598$
LIABILITIES
Accounts payable -$ 2,906$ 2,906$
Interfund loans payable - 17,635 17,635
Total liabilities - 20,541 20,541
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-Special assessment - 623,636 623,636
Total deferred inflows of resources - 623,636 623,636
Total liabilities and deferred inflows of resources - 644,177 644,177
FUND BALANCES (DEFICITS)
Restricted
Debt Guarantee 432,906 19,515 452,421
Unassigned - - -
Total fund balances (deficits)432,906$ 19,515$ 452,421$
Total liabilities and fund balances (deficits)432,906$ 663,692$ 1,096,598$
City of Pasco
Combining Balance Sheet
Nonmajor Debt service funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Local Improv. District
Guaranty
Local Improvement
District Loans
Total Nonmajor Debt
service funds
REVENUES
Investment income 11,941$ 1,559$ 13,500$
Miscellaneous - 125,839 125,839
Total revenues 11,941 127,398 139,339
EXPENDITURES
Current:
Transportation - 3,426 3,426
Debt service:
Interest - 85,717 85,717
Total expenditures - 89,143 89,143
Excess (deficiency) of revenues over
expenditures 11,941 38,255 50,196
Net change in fund balances 11,941 38,255 50,196
Fund balances - beginning 420,964 (18,739) 402,226
Fund balances - ending 432,905$ 19,516$ 452,422$
City of Pasco
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Debt service funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Cemetery Perpetual
Total Nonmajor
Permanent Funds
ASSETS
Cash and cash equivalents 156,840$ 156,840$
Restricted cash
Cemetery endowment 580,526 580,526
Investments - -
Total assets 737,366$ 737,366$
LIABILITIES
Accounts payable -$ - $
Total liabilities - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-Other - -
Total deferred inflows of resources - -
Total liabilities and deferred inflows of resources - -
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery perpetual fund 580,526$ 580,526$
Unassigned 156,840 156,840
Total fund balances (deficits)737,366$ 737,366$
Total liabilities and fund balances (deficits)737,366$ 737,366$
City of Pasco
Combining Balance Sheet
Nonmajor Permanent Funds
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Cemetery Perpetual
Total Nonmajor
Permanent funds
REVENUES
Charges for service 25,955$ 25,955$
Investment income 19,988 19,988
Total revenues 45,943 45,943
Excess (deficiency) of revenues over
expenditures 45,943 45,943
Net change in fund balances 45,943 45,943
Fund balances - beginning 691,424 691,424
Fund balances - ending 737,367$ 737,367$
City of Pasco
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Permanent funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Pension (and Other
Employee Benefit) Trust
Funds Custodial Funds
ASSETS
Cash and cash equivalents 811,338$ 3,424,866$
Receivable
Other governments 1,205,440
Taxes 1,011,598
Special assessments 2,906
Investments at fair value:
Federal agency 2,624
Mutual funds 8,314,893
Total assets 9,131,761 5,641,904
LIABILITIES
Accounts payable 252 504,046
Due to other governments payable - 922,555
Total liabilities 252 1,426,601
NET POSITION
Restricted for:
Pensions 4,460,172 -
Postemployment benefits other than pensions 4,671,337 -
Unrestricted - 4,215,303
Total net position 9,131,509$ 4,215,303$
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Fiduciary Net Position
December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Pension (and Other
Employee Benefit) Trust
Funds Custodial Funds
ADDITIONS
Tax collections by other governments 123,869$ 5,657,236$
Fees collected on behalf other agency - 360,194
Intergovernmental grants and other payments - 3,573,127
Investment income 1,388,763 -
Interest 19,548 -
Dividends 136,926 -
Total additions 1,669,106 9,590,557
DEDUCTIONS
Pension benefits 91,409 -
Medical premiums 87,540 -
Services 4,436 312,101
Payments of sales tax to other governments 955,384
Fees remitted to agency 360,194
Capital 3,550,326
Total deductions 183,385 5,178,005
Net increase (decrease) in fiduciary net position 1,485,721 4,412,552
Net Position -- beginning of the year 7,645,788 (197,249)
Net Position -- end of the year 9,131,509$ 4,215,303$
The notes to financial statements are an integral part of this statement.
City of Pasco
Statement of Changes in Fiduciary Net Position
For year ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Final Budget 2023 Actual
Variance with
Final Budget
Over (Under)Final Budget 2023 Actual
Variance with
Final Budget
Over (Under)
Special Revenue Funds
City Street Fund 4,967,167$ 2,287,022$ (2,680,145)$ 5,386,227$ 2,344,699$ (3,041,528)$
Arterial Street Fund 1,246,749 698,776 (547,973) 2,424,002 1,242,800 (1,181,202)
I-82 Traffic Impact Fund 1,149,881 615,703 (534,178) 2,843,995 450,915 (2,393,080)
Street Overlay Fund 2,270,074 1,285,021 (985,053) 9,036,407 3,716,703 (5,319,704)
Community Dev Block Grant Fund 2,993,700 1,223,710 (1,769,990) 2,461,533 1,453,065 (1,008,468)
ML King Community Center Fund 344,600 138,544 (206,056) 275,728 140,893 (134,835)
Ambulance Services Fund 25,705,282 11,813,105 (13,892,177) 25,611,609 12,452,632 (13,158,977)
City View Cemetery Fund 826,552 352,631 (473,921) 781,788 450,271 (331,517)
Blvd Perpetual Maintenance Fund 150,605 113,215 (37,390) 241,604 144,598 (97,006)
Athletic Program Fund 358,435 203,483 (154,952) 320,453 127,023 (193,430)
Golf Course 200,000 120,614 (79,386) 332,964 88,631 (244,333)
Animal Control 4,709,782 2,316,545 (2,393,237) 4,647,782 2,231,945 (2,415,837)
Senior Center Fund 455,859 203,513 (252,346) 431,349 178,091 (253,258)
Multi-Modal Fund 421,401 203,792 (217,609) 224,539 64,432 (160,107)
School Impact Fees 3,562,600 2,401,100 (1,161,500) 3,549,714 2,392,342 (1,157,372)
Rivershore Trail & Marina Fund 61,332 39,360 (21,972) 229,195 20,731 (208,464)
Special Lodging Assess Fund 1,070,774 556,219 (514,555) 1,070,774 556,219 (514,555)
Litter Abatement Fund 35,824 14,488 (21,336) 33,964 5,829 (28,135)
Revolving Abatement Fund 750,115 328,218 (421,897) 1,252,937 588,206 (664,731)
TRAC Develop & Operating Fund 240,646 64,060 (176,586) 545,322 200,096 (345,226)
Park Development Fund 1,130,250 1,234,842 104,592 3,485,644 1,009,342 (2,476,302)
Capital Improvement Fund 7,303,320 3,065,882 (4,237,438) 22,196,889 5,346,158 (16,850,731)
Economic Development Fund 3,922,402 2,489,911 (1,432,491) 4,829,345 1,908,124 (2,921,221)
Stadium/Convention Ctr Fund 3,020,381 1,282,432 (1,737,949) 4,145,169 1,309,611 (2,835,558)
Hotel/Motel Excise tax 1,526,124 1,050,030 (476,094) 1,735,731 278,907 (1,456,824)
Total 68,423,855 34,102,216 (32,551,649) 98,094,664 38,702,263 (58,383,933)
Debt Service Funds
LID Loans 167,986 127,400 (40,586) 167,986 89,143 (78,843)
LID Guarantee - 11,941 11,941 - - -
Total 167,986 139,341 (28,645) 167,986 89,143 (78,843)
Permanent Funds
Cemetery Perpetual Care 42,000 45,943 3,943 - - -
Total 42,000$ 45,943$ 3,943$ -$ -$ -$
Schedule of Revenues and Expenditures - Budget to Actual
Nonmajor Other Governmental Funds
For the Year Ended December 31, 2023
2023/2024 Biennial Budgeted Amounts
Revenues Expenditures
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Internal Service Funds
Internal Service funds are used to account for the financing of goods or services provided by one
department to other departments of the government and to other government units on a cost
reimbursement basis.
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Equipment
O&M Govt
Equipment
O&M Utility
Equipment
Replacement
Govt
Equipment
Replacement
Utility Med/Dental
Central
Stores
Total Nonmajor
Internal service
funds
ASSETS
Current assets:
Cash and cash equivalents 70,497$ 14,175$ 8,328,481$ 6,740,674$ 678,183$ 13,951$ 15,845,961$
Restricted Cash: Self insured reserve - - - - 2,623,096 - 2,623,096
Investments - - 277,380 245,558 47,497 - 570,435
Receivable: Interfund loans - - 2,286,751 - - - 2,286,751
Total current assets 70,497 14,175 10,892,612 6,986,232 3,348,776 13,951 21,326,243
Noncurrent assets:
Net Pension Asset 160,837 - - - - - 160,837
Capital asset, net of depreciation
Machinery and equipment - - 5,824,301 2,408,549 - - 8,232,850
Total noncurrent assets 160,837 - 5,824,301 2,408,549 - - 8,393,687
Total assets 231,334 14,175 16,716,913 9,394,781 3,348,776 13,951 29,719,930
DEFERRED OUTFLOWS OF RESOURCES
Pension related 130,079 - - - - - 130,079
Total deferred outflows of resources 130,079 - - - - - 130,079
Total assets and deferred outflows of resources 361,413$ 14,175$ 16,716,913$ 9,394,781$ 3,348,776$ 13,951$ 29,850,009$
LIABILITIES
Current liabilities:
Accounts payable 173,615 14,175 211,398 - 280,959 - 680,147
Net Pension Liability 21,666 - - - - - 21,666
Total current liabilities 195,281 14,175 211,398 - 280,959 - 701,813
Noncurrent liabilities:
Net Pension Liability 47,797 - - - - - 47,797
Total noncurrent liabilities 47,797 - - - - - 47,797
Total liabilities 243,078 14,175 211,398 - 280,959 - 749,610
DEFERRED INFLOWS OF RESOURCES
Pension related inflow 115,430 - - - - - 115,430
Total deferred inflows of resources 115,430 - - - - - 115,430
Total liabilities and deferred inflows of resources 358,508 14,175 211,398 - 280,959 - 865,040
NET POSITION
Net investment in capital assets - - 5,824,301 2,408,549 - - 8,232,850
Restricted for:
Pensions 160,837 - - - - - 160,837
State Law WAC - - - - 2,623,096 - 2,623,096
Unrestricted (157,934) - 10,681,214 6,986,232 444,721 13,951 17,968,184
Total net position 2,903$ -$ 16,505,515$ 9,394,781$ 3,067,817$ 13,951$ 28,984,967$
City of Pasco
Combining Statement of Net Position
Nonmajor Internal Service Funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Equipment
O&M Govt
Equipment
O&M Utility
Equipment
Replacement
Govt
Equipment
Replacement
Utility Med/Dental Central Stores
Total Internal
Service Funds
OPERATING REVENUES
Charges for service 2,287,887$ 188,656$ 2,213,060$ 1,495,410$ 8,067,831$ -$ 14,252,844$
Total operating revenues 2,287,887 188,656 2,213,060 1,495,410 8,067,831 - 14,252,844
OPERATING EXPENSES
Salaries & wages 572,437 - - - 28,121 - 600,558
Personnel benefits 192,141 - - - 10,466 - 202,607
Supplies 1,107,068 188,656 172,282 - - - 1,468,006
Services 648,065 - - - 9,265,553 - 9,913,618
Depreciation - - 849,767 332,349 - - 1,182,116
Total operating expenses 2,519,711 188,656 1,022,049 332,349 9,304,140 - 13,366,905
Operating income (loss)(231,824) - 1,191,011 1,163,061 (1,236,309) - 885,939
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - - - - - - -
Investment income 2,439 - 346,060 168,293 107,886 385 625,063
Miscellaneous 4,507 - 980 - 284,729 - 290,216
Gain (loss) on disposal of property - - (97,666) - - - (97,666)
Sale of asset - - 104,316 25,000 - - 129,316
Total nonoperating revenues (expenses)6,946 - 353,690 193,293 392,615 385 946,929
Income (loss) before contributions and transfers(224,878) - 1,544,701 1,356,354 (843,694) 385 1,832,868
Change in net position (224,878) - 1,544,701 1,356,354 (843,694) 385 1,832,868
Total net position - beginning 227,708$ -$ 14,960,815$ 8,038,427$ 3,911,508$ 13,567$ 27,152,025$
Total net position - ending 2,830$ -$ 16,505,516$ 9,394,781$ 3,067,814$ 13,952$ 28,984,893$
City of Pasco
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal service funds
For the Year Ended December 31, 2023
City of Pasco, Washington 2023 Annual Comprehensive Financial Report
Equipment
Rental
Operations
Equipment Rental
Replacement
Medical
Insurance
Central
Stores Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 2,476,631$ 3,708,470$ 8,067,831$ -$ 14,252,932$
Payments to employees (811,422) - (38,500) - (849,922)
Payments to suppliers (1,887,042) (357,218) (8,989,155) - (11,233,415)
Net cash provided (used) by operating activities (221,833) 3,351,252 (959,824) - 2,169,595
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Miscellaneous 4,507 980 284,729 - 290,216
Net cash provided (used) by noncapital financing activities 4,507 980 284,729 - 290,216
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Sale of assets - 129,316 - - 129,316
Acquisition and construction fo capital assets - (2,577,405) - - (2,577,405)
Interfund loan rec'd & paid - 685,198 - - 685,198
Net cash provided (used) by capital and related financing activities - (1,762,891) - - (1,762,891)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments - 418,315 80,734 - 499,049
Interest on investments 2,439 514,353 107,886 385 625,063
Net cash provided (used) by investing activities 2,439 932,668 188,620 385 1,124,112
Net increase (decrease) in cash and cash equivalents (214,887) 2,522,009 (486,475) 385 1,821,032
Balances - beginning of year 299,558 12,547,149 3,787,751 13,567 16,648,025
Balances - end of the year 84,671 15,069,158 3,301,276 13,952 18,469,057
Reconciliation of operating income (loss) to net cash provided (used) by
operating activities:
Operating Income (231,754) 2,256,406 (1,236,309) - 788,343
Adjustments to reconcile operating income (loss) to net cash provided (used) by
operating activities:
Depreciation - 1,182,116 - - 1,182,116
Loss on disposal - 97,666 - - 97,666
Changes in assets and liabilities:- -
(Increase) decrease in customer receivables 12 - - - 12
Increase (decrease) in accounts payable 56,747 (184,936) 276,398 - 148,209
Increase (decrease) in salaries & benefits payable (2,402) - 87 - (2,315)
(Increase) decrease in deferred outflows pensions 20,831 - - - 20,831
Increase (decrease) in pension liability (13,595) - - - (13,595)
Increase (decrease) in pension asset (16,605) - - - (16,605)
Increase (decrease) in deferred inflow pension (35,073) - - - (35,073)
Net cash provided (used) by operating activities (221,839)$ 3,351,252$ (959,824)$ -$ 2,169,589$
City of Pasco
Combining Statement of Cash Flows
Internal service funds
For the Year Ended December 31, 2023
City of Pasco, Washington 202 3 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 202 3 Annual Comprehensive Financial Report
Firemen's Pension
Firemen's Other Post-
Employment Benefits
Total Pension and
OPEB trust funds
ASSETS
Cash and cash equivalents 722,750$ 88,588$ 811,338$
Receivables:
Special assessments 2,906 - 2,906
Investments at fair value:
Federal agency 2,624 - 2,624
Mutual funds 3,732,144 4,582,749 8,314,893
Total assets 4,460,424 4,671,337 9,131,761
LIABILITIES
Accounts payable 252 - 252
Total liabilities 252 - 252
NET POSITION
Restricted for:
Pensions 4,460,172 - 4,460,172
Postemployment benefits other than pensions - 4,671,337 4,671,337
Total net position 4,460,172$ 4,671,337$ 9,131,509$
City of Pasco
Combining Statement of Fiduciary Net Position
Pension and OPEB Trust Tunds
For the year ended December 31, 2023
Firemen's Pension
Firemen's Other Post-
Employment Benefits
Total Pension and
OPEB Trust funds
ADDITIONS
Tax collections by other governments 123,869 - 123,869
Investment income 782,930 605,833 1,388,763
Dividends 62,564 74,362 136,926
Interest 17,781 1,767 19,548
Total additions 987,144 681,962 1,669,106
DEDUCTIONS
Services 3,311 1,125 4,436
Medical premiums - 87,540 87,540
Pension benefits 91,409 - 91,409
Total deductions 94,720 88,665 183,385
Net increase (decrease) in fiduciary net position 892,424 593,297 1,485,721
Net Position - beginning of the year 3,567,748 4,078,040 7,645,788
Net Position - end of the year 4,460,172$ 4,671,337$ 9,131,509$
City of Pasco
Combining Statement of Changes in Fiduciary Net Position
Pension and OPEB Trust funds
For year ended December 31, 2023
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Admin. Office of
the Courts
Pasco Public
Facility District
Animal
Control
Authority
Total Custodial
funds
ASSETS
Cash and cash equivalents - 3,424,864 2 3,424,866
Receivables:
Other governments 65,891 - 1,139,549 1,205,440
Taxes - 1,011,598 - 1,011,598
Total assets 65,891 4,436,462 1,139,551 5,641,904
LIABILITIES
Accounts payable 65,891 267,179 170,976 504,046
Due to local governments - - 922,555 922,555
Total liabilities 65,891 267,179 1,093,531 1,426,601
NET POSITION
Unrestricted - 4,169,283 46,020 4,215,303
Total net position -$ 4,169,283$ 46,020$ 4,215,303$
City of Pasco
Combining Statement of Fiduciary Net Position
Custodial funds
December 31, 2023
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Admin Office of
the Courts
Pasco Public
Facility District
Animal
Control
Authority
Total Custodial
funds
ADDITIONS
Taxes -$ 5,657,236$ -$ 5,657,236$
Fees collected on behalf other agency 360,194 - - 360,194
Intergovernmental grants and other payments - 9,245 3,563,882 3,573,127
Total additions 360,194 5,666,481 3,563,882 9,590,557
DEDUCTIONS
Services - 312,101 - 312,101
Payments of sales tax to other governments - 955,384 - 955,384
Fees remitted to agency 360,194 - - 360,194
Capital - - 3,550,326 3,550,326
Total deductions 360,194 1,267,485 3,550,326 5,178,005
Net increase (decrease) in fiduciary net position - 4,398,996 13,556 4,412,552
Net Position -- beginning of the year - (229,713) 32,464 (197,249)
Net Position -- end of the year -$ 4,169,283$ 46,020$ 4,215,303$
City of Pasco
Combining Statement of Changes in Fiduciary Net Position
Custodial funds
December 31, 2023
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Sacajawea Trail
City of Pasco, Washington 202 3 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.
Financial Trends
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
These schedules contain information to help the reader assess the government’s most significant
revenue sources.
Debt Capacity
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
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
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 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets 185,424$ 198,278$ 212,712$ 217,060$ 236,868$ 247,554$ 262,403$ 266,042$ 275,082$ 316,191$
Restricted for:
Capital improvement 3,733 4,802 5,927 6,980 8,853 9,123 20,366 16,689 2,655 9,935
Cemetery (nonexpendable)455 468 486 505 531 - 601 647 691 581
Contested tax & drug forefits 57 - - - - - - - - -
Culture and recreation - - - (4) 99 108 30 112 173 205
Debt repayment guarantee 349 635 371 362 20,036 195 418 421 452
Economic development 49 108 114 64 96 72 102 884 246 1
Litter and housing abatement 369 354 562 416 416 474 637 869 575 324
OPEB***- - - - - 2,271 2,495 3,900 3,483 4,164
Opiod and overdose response plan****- - - - - - - 69 104
Park development 1,994 2,135 2,152 1,723 2,219 2,998 3,426 3,061 3,532 3,758
Pensions***- - - - - 14,520 12,986 41,704 21,115 22,843
Permit & plan check fee***- - - - - 630 811 2,488 3,150 3,365
Prepaids 141 - - - - - - - - -
Program, grant, donations 86 35 44 19 73 384 410 669 3,440
Special assessment debt 64 6,240 - - - - - - -
State Law WAC***- - - - - 2,130 1,991 2,138 2,345 2,623
Streets and boulevards 7,150 6,204 6,986 7,996 8,635 8,980 9,949 10,117 10,647 6,969
Unrestricted 15,934 10,433 16,576 11,673 18,210 571 21,848 16,078 65,141 56,568
Total governmental activities net position 215,719 229,108 246,185 246,828 276,308 309,540 338,224 365,557 389,994 431,523
Business-type activities .--
Net investment capital assets 137,088 139,166 141,470 141,373 147,338 160,514 167,636 173,209 178,274 195,379
Restricted 10,841 - - - - 10,380 24,912 25,483 24,281 20,433
Unrestricted 4,274 15,736 19,860 26,339 32,149 21,926 14,357 33,316 43,424 48,934
Total business-type activities net position 152,203 154,902 161,330 167,712 179,487 192,820 206,905 232,008 245,979 264,746
Primary government
Net investment in capital assets 322,512 337,444 354,182 358,433 384,206 408,068 430,039 439,251 453,356 511,570
Restricted 25,202 20,397 16,897 18,095 21,230 71,795 78,885 108,920 74,052 79,197
Unrestricted 20,208 26,169 36,436 38,012 50,359 22,497 36,205 49,394 108,565 105,502
Total primary government net assets 367,922$ 384,010$ 407,515$ 414,540$ 455,795$ 502,360$ 545,129$ 597,565$ 635,973$ 696,269$
* Break out not available prior to 2012
** Break out not reported prior to 2017
*** Started resticting in 2019
**** Started resticting in 2022
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 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses
Governmental activities:
General government 8,092$ 8,238$ 8,716$ 7,594$ 6,950$ 9,040$ 12,457$ 33,492$ 35,368$ 12,332$
Public safety 21,624 24,917 29,374 30,661 32,470 31,003 40,014 6,012 15,845 31,215
Transportation 16,728 16,374 16,628 17,893 18,047 11,770 20,092 21,149 8,217 43,993
Economic environment 4,710 5,137 5,618 6,894 6,873 7,807 8,523 11,753 11,907 9,514
Culture and recreation 7,941 8,115 8,929 9,168 9,490 5,954 7,951 8,688 22,609 14,091
Interest on long term debt 210 444 504 438 421 526 1,110 1,260 1,483 1,737
Total governmental activities expenses 59,305 63,225 69,769 72,648 74,251 66,100 90,147 82,354 95,429 112,882
Business-type activities
Water 8,238 9,099 9,476 10,172 10,285 14,340 11,278 9,096 11,842 14,190
Irrigation 1,546 1,779 1,646 1,993 1,914 1,811 1,953 2,023 2,078 2,747
Sewer 7,902 8,175 8,571 8,986 9,309 (137) 8,946 8,994 10,429 11,317
Water process reuse 1,848 2,524 3,173 2,590 2,508 3,222 5,053 4,505 5,027 5,008
Storm water 1,288 1,168 1,531 1,303 1,395 1,359 1,356 1,809 2,216 2,603
Total business-type activities expenses 20,822 22,745 24,397 25,044 25,411 20,595 28,586 26,427 31,592 35,865
Total primary government expenses 80,127 85,970 94,166 97,692 99,662 86,695 118,733 108,781 127,021 148,747
Program revenues
Governmental Activities:
Charges for Services
General government 5,083 5,283 4,741 4,759 6,108 8,449 4,467 4,689 5,977 5,233
Public safety 5,144 5,177 6,310 8,525 8,808 11,263 12,714 11,589 13,094 12,698
Transportation 4,203 3,672 3,771 2,609 2,319 3,859 3,528 3,244 999 3,785
National & economic environment 3,172 3,570 6,022 6,096 6,075 10,306 6,818 8,945 9,724 3,670
Culture and recreation 2,334 2,502 2,556 2,905 3,864 3,187 2,283 2,312 4,609 2,045
Operating grants and contributions 1,702 1,770 1,321 1,041 1,614 1,471 11,221 8,259 4,379 9,956
Capital grants and contributions 4,302 23,929 25,053 14,189 31,756 7,977 29,526 15,694 18,067 42,711
Total governmental activities program revenues 25,940 45,903 49,774 40,124 60,544 46,512 70,557 54,732 56,849 80,098
Business-type activities
Charges for services 20,002 20,979 23,603 25,816 28,172 29,672 32,858 33,455 35,317 39,629
Operating grants and contributions 23 27 11 69 1,048 8 282 58 100 120
Capital grants and contributions 3,344 6,090 7,189 5,267 7,395 4,108 6,810 12,836 7,042 8,216
Total business-type activities program revenues 23,369 27,096 30,803 31,152 36,615 33,788 39,950 46,349 42,459 47,965
Total primary government program revenues 49,309$ 72,999$ 80,577$ 71,276$ 97,159$ 80,300$ 110,507$ 101,081$ 99,308$ 128,063$
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 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Net (expenses)/revenues
Governmental activities ($33,365)($17,322)($19,995)($41,048)($13,707)($19,588)(19,590) (27,622) (38,580) (32,784)
Business-type activities 2,547 4,351 6,406 6,108 11,204 13,193 11,364 19,922 10,867 12,100
Total primary government (30,818) (12,971) (13,589) (34,940) (2,503) (6,395) (8,226) (7,700) (27,713) (20,684)
General revenues and other changes in net assets
Governmental Activities:
Subscription based information technology agreements**- - - - - - - - 2,396 2,228
Taxes
Property taxes 7,069 7,255 7,928 7,963 8,353 10,698 11,066 11,496 11,857 12,553
Sales and use taxes 12,695 13,646 14,887 15,818 16,696 17,751 18,850 23,774 27,429 26,542
Occupational utility taxes 9,592 10,268 9,028 10,512 10,104 11,628 11,117 11,454 12,113 12,738
Other taxes 2,290 2,443 2,884 3,487 3,636 4,830 2,693 5,703 4,293 4,004
Investment and miscellaneous 62 252 300 485 871 921 3,898 3,093 3,645 4,491
Intergovernmental 1,581 1,741 1,962 3,609 3,589 3,649 4,077 4,804 3,624 4,370
Gain on sale of asset*- - - - - 1,290 508 270 106 (46)
Bond issued***- - - - - - - - - 12,600
Premium on bond issued***- - - - - - - - - 967
Transfers (150) - - (65) (78) 540 (1,233) (1,758) (2,251) (5,915)
Total governmental activities 33,139 35,605 36,989 41,809 43,171 51,307 50,976 58,836 63,212 74,532
Business-type activities
Investment and miscellaneous 29 103 145 209 571 643 312 136 358 1,153
Intergovernmental - - - - - - - 757 119 -
Gain on sale of asset*- - - - - 85 (12) - 74 93
Transfers 150 - - 65 - (540) 1,233 1,758 2,251 5,915
Total business-type activities 179 103 145 274 571 188 1,533 2,651 2,802 7,161
Total primary government 33,318 35,708 37,134 42,083 43,742 51,495 52,509 61,487 66,014 81,693
Changes in net position
Governmental activities (226) 18,283 16,994 761 29,464 31,719 31,386 31,214 24,632 41,748
Business-type activities 2,726 4,454 6,551 6,382 11,775 13,381 12,897 22,573 13,669 19,261
Total primary government $2,500 $22,737 $23,545 $7,143 $41,239 $45,100 $44,283 $53,787 $38,301 $61,009
*Reporting separate gain on sale of asset in 2019
**Reporting SBITA 2022
***Reporting Bonds issued & premium on bond 2023
Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Ended December 31
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Fiscal Year
Ended
December 31
Property
Taxes
Sales and
Use Taxes B&O Taxes
Excise and
Other
Taxes Total Taxes
2014 7,069$ 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
2022 11,857 27,429 12,113 4,293 55,692
2023 12,253$ 26,542$ 12,738$ 4,004$ 55,537$
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General fund
Restricted
Capital improvements 9,959 3,809 2,122 5,099
Debt Repayment/guarantee - 4,876 - - - 18,572 - - - -
Law Enforcement 57 - - - - - - - - -
Opiod and overdose response plan - - - - - - - - 69 104
Permit & plan check fees - - - - - 630 811 2,488 3,150 3,365
Prepaids 136 - - - - - - - - -
Program, grant, donation - 86 35 44 19 73 384 411 664 3,302
Committed
Landfill claims 406 407 407 407 407 407 407 407 407 407
Red Flex 2 - - - - - 76 87 - - -
Assigned
Subsequent year's budget appropriation 806 - 1,858 - - - - - - -
Future project- Community Center 3 - - - - - 1,230 1,230 1,230 1,230 1,230
Unassigned 7,978 11,920 12,333 13,118 15,365 20,263 25,874 21,718 28,771 23,082
Total general fund 9,383$ 17,289$ 14,633$ 13,569$ 15,791$ 41,251$ 38,752$ 30,063$ 36,413$ 36,589$
All other governmental funds
Nonspendable
Cemetery permanent fund 1 455 467 486 505 531 - 602 648 691 581
Restricted
Capital improvements 3,733 4,802 5,927 6,980 8,853 9,123 10,408 12,807 12,748 10,515
Culture and recreation (4) 98 108 30 112 173 205
Debt repayment/guarantee 1,364 635 371 362 1,463 195 418 421 452
Economic development 49 108 115 63 96 72 102 884 190 1
General obligation debt 349 - - - - - - - - -
Litter & housing abatement 369 354 562 416 416 474 636 869 575 324
Park development 1,995 2,135 2,152 1,723 2,219 2,998 3,426 3,061 3,532 3,758
Special assessment debt 64 - - - - - - - -
Street and boulevard 7,150 6,204 6,986 7,997 8,635 8,980 9,950 10,120 9,772 6,969
Program, grant, donation - - - - - - - - - -
Committed
Red Flex 2 691 906 860
Special revenue funds 2,031 3,017 3,770 4,408 3,395 7,535 13,389 25,950 27,737 28,327
Construction projects 33 238 226 - 101 446 - - - -
Debt guarantee 926 - - - - - - - - -
Assigned
Unassigned (442) (400) (279) (130) (66) (1,521) (558) (269) (48) 116
Total all other governmental funds 16,712$ 18,289$ 20,580$ 22,329$ 24,640$ 29,678$ 38,180$ 55,291$ 56,697$ 52,108$
1 Started reporting in Fiduciary funds in 2019
2 Started Red Flex, permit and plan fees in 2019 & moved to Special Revenue fund in 2021
3 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 21
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenue
Rent and leases***1,650$
Taxes 31,756 33,587 34,727 37,781 38,789 44,909 43,726 52,397 55,693 55,713
Licenses and permits 1,983 3,389 2,516 2,576 2,947 3,340 2,889 4,117 3,303 3,490
Intergovernmental revenue 6,868 5,857 5,280 7,951 13,867 8,921 13,821 22,327 23,914 30,412
Charges for services 12,562 11,598 15,538 18,438 18,174 22,492 21,708 23,024 26,287 25,521
Fines and forfeitures 961 1,209 984 960 1,072 1,198 1,250 1,329 1,155 1,064
Investment**- - - - - - 256 44 578 2,374
Miscellandous**- - - - - - 3,316 3,785 3,566 1,345
Investment and miscellaneous**3,146 2,264 2,956 2,792 3,769 6,324 - - - -
Total revenues 57,276 57,904 62,001 70,498 78,618 87,184 86,966 107,023 114,496 121,569
Expenditures
Current:
General government 7,720 7,940 8,567 8,839 10,041 11,388 10,810 12,280 13,781 18,680
Public safety 22,110 25,269 27,205 32,253 33,254 34,111 36,843 40,249 40,049 46,361
Transportation 6,344 5,273 4,147 4,449 4,057 5,202 5,099 5,222 7,062 6,041
Natural and economic enviroment 4,568 4,989 5,446 6,786 6,674 8,678 8,373 11,655 13,226 13,221
Culture and recreation 7,153 7,357 8,131 8,763 8,833 7,449 7,043 7,561 7,352 8,347
Debt service:
Principal 675 581 1,291 807 815 830 1,330 1,065 1,525 1,867
Interest 210 445 504 438 421 526 1,279 1,269 1,484 1,578
Debt issuance cost***- - - - - - - - - 103
Capital outlay
General government 506 166 206 268 424 1,276 518 113 592 1,088
Public safety 258 3,274 5,606 1,053 789 1,978 8,893 6,076 4,258 10,345
Transportation 2,852 2,203 995 4,152 8,084 7,522 802 9,362 15,884 25,173
Natural and economic enviroment 1,351 - 518 (23) 26 32 306 133 106 794
Culture and recreation 225 471 845 1,352 1,302 1,379 1,004 6,841 2,097 4,771
Total expenditures 53,972 57,968 63,461 69,137 74,720 80,371 82,300 101,826 107,416 138,369
Excess of revenues
over (under) expenditures 3,304 (64) (1,460) 1,361 3,898 6,813 4,666 5,197 7,080 (16,800)
Other financing sources (uses)
Transfer in 3,800 7,352 10,228 6,466 3,399 15,981 15,985 30,549 13,567 26,344
Transfer out (4,343) (7,613) (10,228) (6,531) (3,477) (15,448) (16,508) (31,855) (15,511) (32,259)
Premium on bonds issued - 308 - - - 4,094 - 3,781 - 967
Discount on bonds issued - (62)
Insurance recoveries - - - - - 111 325 40 96 936
Leases***- - - - - - - - 2,396 -
Subscription based informtion technology agreements****- - - - - - - - - 2,228
Proceeds from sale of asset 227 700 1,010 67 140 1,357 977 609 136 -
Proceeds of general debt - 8,795 - - - 18,090 - - - -
Total other financing sources (uses)(316) 9,542 1,010 2 62 24,185 779 3,124 684 10,754
Net change in fund balances 2,988$ 9,478$ (450)$ 1,363$ 3,960$ 30,998$ 5,445$ 8,321$ 7,764$ (6,046)$
Debt services as percentage
of noncapital expenditures 1.8%1.9%3.0%1.9%1.8%1.8%3.3%2.4%2.9%2.6%
Capital outlay
General government 506 166 206 268 424 1,276 518 113 592 1,088
Public safety 258 3,274 5,606 1,053 789 1,978 8,893 6,076 4,258 10,345
Transportation 2,852 2,203 995 4,152 8,084 7,522 802 9,362 15,884 25,173
Natural and economic enviroment 1,351 - 518 (23) 26 32 306 133 106 794
Culture and recreation 225 471 845 1,352 1,302 1,379 1,004 6,841 2,097 4,771
Donated assets*- - - - 24,450 6,917 29,252 31,604 6,311 28,616
Depreciation expense*- - - - (15,918) (5,186) (16,876) (18,848) (18,399) (16,354)
Joint venture*- - - - 1,089 204 93 61 34 54
Prior period adjustment capital outlay - - - - - - (1,473) (11) - (451)
Governmental funds capital outlays as expenditures.5,192$ 6,114$ 8,170$ 6,802$ 20,246$ 14,122$ 22,519$ 35,331$ 10,883$ 54,036$
* totals not reported prior to 2018
** totals split out in 2020
*** total not reported prior to 2022
**** total not reported prior to 2023
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 202 3 Annual Comprehensive Financial Report
Fiscal Year
Ended
December
31
Residential
Property
Commercial
Property
Other
Property
Total Taxable
Assessed
Valuation
Total
Direct
Tax Rate
2014 2,455,759$ 833,089$ 192,151$ 3,480,999$ 2.00
2015 2,615,824 914,211 201,939 3,731,974 1.99
2016 2,616,243 911,431 198,327 3,726,001 1.98
2017 3,158,813 1,198,038 229,222 4,586,073 1.88
2018 3,556,588 1,423,538 273,940 5,254,066 1.75
2019 4,015,768 1,540,926 292,317 5,849,011 1.94
2020 4,450,475 1,732,969 315,883 6,499,327 1.81
2021 4,631,379 1,710,197 319,576 6,661,152 1.68
2022 6,990,366 1,997,021 2,077,156 11,064,543 1.47
2023 8,433,261$ 2,479,807$ 2,281,711$ 13,194,779$ 1.29
Assessed Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Real Property
Fiscal Year
Ended
December 31 Admissions Cable TV
Solid
Waste Water Irrigation *Sewer Storm Reuse Gas Telephone Electricity Total
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
2022 40 548 1,036 1,119 188 884 169 489 1,265 803 5,354 11,895
2023 73 486 1,064 1,305 190 1,113 209 697 1,505 832 5,338 12,812
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 202 3 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
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
2022 1.465 0.000 1.465 0.941 0.064 1.005 1.456 1.848 3.304 0.218 2.906
2023 1.288 0.000 1.288 0.894 0.000 0.894 1.782 1.604 3.386 0.195 2.572
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.
Property Tax Rates
Direct and Overlapping 1 Governments
Last Ten Fiscal Years
Overlapping Rates
City of Pasco County School District
Fiscal Year
Ended
December 31 City of Pasco 1 Franklin County 1
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 1,900,223 2,204,733
2022 2 1,841,053 2,172,248
2023 2,211,408$ 2,532,887$
Taxable Retail Sales
Last Ten Fiscal Years
(amounts expressed in thousands)
City of Pasco, Washington 202 3 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
Project Oyster Pasco LLC 203,615 1 20.75%
Project Pearl Pasco LLC 187,600 2 19.12%
Reser's Fine Foods, Inc 157,639 3 16.06%13,662 9 37.00%
Simplot-RDO LLC 117,106 4 11.93%
Glencrest Pasco Spe Llc (Etal)57,175 5 5.83%
Kenyon Zero Storage 55,161 6 5.62%12,998 10 35.00%
Darigold, Inc.$54,475 7 5.55%
Autozone Parts Inc 51,878 8 5.29%
Broadmoor Properties LLC 48,488 9 4.94%
Jubilee Foundation 48,311 10 4.92%
Crossing at Chapel Hill ICG LLC 0.00%16,174 6 44.00%
Broadmoor LLC 0.00%15,382 7 41.00%
Frank Tiegs LLC 0.00%
Syngenta Seed Inc 0.00%36,442 1 98.00%
Columbia Villas LLC 0.00%
Pasco Processing LLC 0.00%29,574 2 80.00%
Art Mtg Borrower Propco 0.00%
BNSF Railway Co.0.00%
Grimmway Enterprises 0.00%27,821 3 75.00%
Twin City Foods, Inc.0.00%21,360 4 57.00%
Bybee Foods LLC 0.00%20,981 5 56.00%
Wal-Mart, Inc 0.00%14,056 8 38.00%
777,833$ 79.26%$208,450 561.00%
Source: Franklin County Assessor's Office
Principal Property Taxpayers
Current Year and Ten Years Prior
Fiscal Year Ended December 31
(amounts expressed in thousands)
2023 2014
Taxpayer Taxpayer Tax Revenue Rank
Percentag
e of Total
Tax
Revenue
Tax
Revenue Rank
Percentage of
Total Tax
Revenue
Company A Franklin Co PUD $4,026 1 47.71%5,355$ 1 54.45%
Company B Cadcade Natural Gas 573 3 6.79%1,720 2 17.49%
Company C Basin Disposal Inc 790 2 9.36%1,155 3 11.74%
Company D Spectrum 0.00%
Company E Verizon Wireless (VAW) LLC 440 5 5.21%0.00%
Company F New Cingular Wireless PCS LLC 421 6 4.99%117 7 1.19%
Company G Falcon Video Communications LP 516 4 6.11%0.00%
Company H Century Link 242 7 2.87%0.00%
Company I Sprint Spectrum LP 109 9 1.29%0.00%
Company J Taxconnex LLC 0.00%
Company K Charter Advanced Services WA LLC 164 8 1.94%0.00%
Company L IGI Resouces (IRI)0.00%
Company M Qwest Corporation 98 10 1.16%88 9 0.89%
Company N AT&T Wireless 0.00%
Company O Charger Fiberlink WA CCVVII, LLC 0.00%
Company P Nextel West Communication 0.00%
Company Q USCOC of Richland/US Cellular 0.00%
Company R Pacific Bell Wireless Northnwest 0.00%
Company S T-Mobile West LLC 0.00%
Company T Spectrum Pacific West LLC 522 4 5.31%
Company U Cellco Partnership 223 6 2.27%
Company V Maverick Washington LLC 0.00%
Company W Spectrum Advanced Services LLC 86 10 0.87%
Company X BENTON PUD 476 5 4.84%
Company Y BIG BEND ELECTRIC COOPERATIVE INC 92 8 0.94%
`$7,379 87.43%$9,834 100.00%
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.
Source: Revenue collection
Principal B&O Taxpayers
Current Year and Ten Years Prior
Fiscal Year Ended December 31
(amounts expressed in thousands)
2014 2023
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
2014 2023
Sales % of Sales % of
Tax Total Tax Total
Industries Paid Rank Sales Tax Paid Rank Sales Tax
Motor Vehicle and Parts Dealers $2,108,995 1 22.21%4,961,966 1 33.50%
Merchant Wholesale, Durable Goods 728,803 2 7.68%1,405,820 3 9.50%
General Merchandise Stores 556,239 5 5.86%823,248 7 5.60%
Building Material and Garden 383,370 7 4.04%734,830 8 5.00%
Construction of Buildings 722,589 3 7.60%1,953,760 2 13.20%
Food Services, Drinking Places 593,273 4 6.25%1,250,640 5 8.50%
Food & Beverage Stores 0.00%
Rail Transportation 326,183 8 3.44%0.00%
Specialty Trade Contractors 535,016 6 5.63%1,241,281 6 8.40%
Rental and Leasing Services 295,127 9 3.11%0.00%
Telecommunications 255,123 10 2.69%0.00%
Sporting Goods, hobby, misc retailers 1,316,794 4 8.90%
Miscellaneous Store Retailers 0.00%
Repair and Maintenance 0.00%
Statewide Pool - Miscellaneous 0.00%
Administrative and Support Services 587,603 9
Furniture, Home Furnishings, Electronics, and Appliance Retailers 520,515 10
Other 2,991,045 31.51%0.00%
Total $9,495,763 68.51%14,796,457$ 93%
Source: Washington State Department of Revenue
*4th Qtr data was not avialable, 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
Fiscal Year Ended
December 31
Total tax
levy for
fiscal year Amount collections
Percentage
of levy
Collections in
Subsequent
years 1 Amount
Percentage of
levy
2014 7,064 6,933 6,933,295 98.1%75 7,008 99.2%
2015 7,287 7,169 7,168,952 98.4%93 7,262 99.7%
2016 7,748 7,627 7,626,850 98.4%107 7,734 99.8%
2017 7,949 7,932 7,931,588 99.8%105 8,037 100.0%
2018 8,381 8,288 8,287,846 98.9%118 8,406 100.2%
2019 10,667 10,558 10,557,856 99.0%141 10,699 100.3%
2020 11,064 11,036 11,036,000 99.7%117 11,153 100.8%
2021 11,450 11,345 11,345,425 99.1%94 11,439 99.9%
2022 11,818 11,850 11,850,084 100.3%84 11,934 101.0%
2023 11,818 12,555 12,555,025 106.2%0 12,555 106.2%
Total collections to dateCollected within the fiscal year of the levy
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
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
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 - 3,591 51,497 14,299 93,307 1.7%1,186
2022 23,010 - 3,401 49,277 38,599 114,287 1.8%1,425
2023 34,665 3,211$ 73,930 69,861$ 181,667 3.0%2,238
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 for 2020 as 2023 data was not available
3 2023 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
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
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
2022 23,010 - 23,010 0.2080%287
2023 34,665 - 34,665 0.2627%427
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 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Debt limit 88,576$ 91,985$ 98,436$ 105,699$ 120,022$ 137,507$ 153,031$ 169,960$ 201,630$ 243,800$
Total net debt applicable to limit 4,063 12,174 10,442 9,660 8,865 26,125 24,795 23,920 23,010 34,665
Legal debt margin 84,513$ 79,811$ 87,994$ 96,039$ 111,157$ 111,382$ 128,236$ 146,040$ 178,620$ 209,135$
Total net debt applicable to the limit as a percentage of debt limit 4.59%13.23%10.61%9.14%7.39%19.00%16.20%14.07%11.41%14.22%
Legal debt margin calculation for fiscal year 2022
3,679,413$
55,191
Less:
Non-Voted GO Bonds Outstanding (11,180)
(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)209,135$
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.
The 1.5 percent is the maxium limit for gerneral 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.
-
(34,665)
-
180,945
243,800
Non-Voted Debt Capacity Value (1.5% of Assessed Value)146,280
2023 Assesed Valuation for 2024 Collections 9,752,006$
34,665
Other Non-voted General Obligations Outstanding
Legal Debt Margin
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year Ended December 31
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Direct debt Amount
Voted General Obligation -$
Councilmanic General Obligation Debt 33,395
Total direct debt 33,395
Overlapping Debt
Jurisdiction Outstanding debt Percent applicable
Estimated Share of
Overlapping Debt
Franklin County 19,982 0.00%-
Pasco School District 208,232 0.00%-
Port of Pasco 26,642 0.00%-
Total overlapping debt -
Total direct & overlapping debt 33,395
Governmental activities debt ratios
Assessed valuation- 2023 (established in November, 2022 for the 2023 tax year)9,752,006
Population 97
Net direct debt to assessed valuation 0.34%
Net direct debt and overlapping debt to assessed valuation 0.34%
Assessed valuation per capita 100,536
Net direct debt per capita 344
Direct debt and overlapping debt per capita 344
Councilmanic debt and other obligations:
G.O. Bonds Outstanding 33,395
Other Non-voted G.O. Outstanding -
33,395$
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 Assessor's Office
Franklin County Assessor's website- tax booklet
Direct and Overlapping Governmental Activities Debt
As of December 31, 2023
(amounts expressed in thousands)
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Operating Revenues
Water Sales (1)7,594,091$ 7,971,096$ 8,293,323$ 8,712,335$ 9,484,909$ 9,960,584$ 10,639,412$ 11,355,254$ 11,964,375$ 13,502,751$
Irrigation Sales (1)1,105,076 1,188,855 1,180,488 1,320,669 1,388,616 1,516,420 1,656,949 1,783,145 1,858,703 1,862,989
Sewer Sales (1)5,914,671 6,197,706 7,030,704 7,890,524 8,443,300 8,915,763 9,405,342 10,036,100 10,400,116 10,676,698
Process Water Reuse Sales (1)1,997,655 2,053,639 3,063,034 3,291,049 3,549,788 3,522,920 5,194,726 4,170,626 4,524,882 7,749,313
Stormwater Sales (1)1,054,682 1,305,138 1,386,325 1,441,274 1,690,190 1,811,771 1,936,366 2,070,306 2,203,255 2,325,032
Other Utility Charges (2)2,347,236 2,072,899 2,541,924 2,267,116 2,778,718 3,076,936 3,011,099 2,070,305 3,390,896 2,325,032
Total Operating Revenues 20,013,411 20,789,333 23,495,798 24,922,967 27,335,521 28,804,394 31,843,894 31,485,736 34,342,227 38,441,815
Operating & Maintenance Expenses
Salaries & Wages 2,830,832 3,016,535 3,097,784 3,461,414 3,336,849 3,827,189 3,984,669 4,015,954 4,817,364 5,743,786
Personnel Benefits (3)1,330,549 1,403,036 2,255,786 1,636,421 883,142 1,607,406 1,414,194 530,228 1,458,737 1,830,374
Supplies 1,492,845 1,633,374 1,556,387 1,839,792 1,991,868 1,627,982 2,119,290 2,086,280 2,554,116 2,738,325
Services (1)5,890,538 7,010,663 7,445,805 7,565,547 8,179,595 8,121,300 10,707,922 10,120,777 10,178,839 14,234,780
Total Operating Expenses 11,544,764 13,063,608 14,355,762 14,503,174 14,391,454 15,183,877 18,226,075 16,753,239 19,009,056 24,547,265
Operating Income 8,468,647 7,725,725 9,140,036 13,007,723 11,253,877 11,808,745 13,617,819 14,732,497 15,333,171 13,894,550
Non-Operating Revenue
Interest Income 15,685 28,310 48,536 94,215 413,342 538,452 235,648 22,696 242,832 1,009,643
Misc Income - - - - 120,582 50,973 54,959 95,942 115,405 143,409
Net Farmland Rental - - - - -
Total Non-Operating Revenues (4)15,685 28,310 48,536 94,215 533,924 589,425 290,607 118,638 358,237 1,153,052
Net Revenues before Assessments 8,484,332 7,754,035 9,188,572 13,101,938 11,787,801 12,398,170 13,908,426 14,851,135 15,691,408 15,047,602
Special Assessment Repayments 123,404 94,284 52,673 99,775 36,689 24,254 12,564 17,374 277,044 686,734
Net Revenue for Debt Service Payment 8,607,736 7,848,319 9,241,245 13,201,713 11,824,490 12,422,424 13,920,990 14,868,509 15,968,452 15,734,336
Bond Debt Service (5)3,550,920 2,767,541 3,142,209 3,452,150 3,177,081 3,436,107 4,176,102 4,887,568 4,656,177 8,360,482
Debt Service Coverage (6)2.42 2.84 2.94 3.82 3.72 3.62 3.33 3.04 3.43 1.88
Balance Available for Other Purposes 5,056,816$ 5,080,778$ 6,099,036$ 9,749,563$ 8,647,409$ 8,986,317$ 9,744,888$ 9,980,941$ 11,312,275$ 7,373,854$
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) Excludes noncash capital contributions, gains/losses, capital grants, etc.
(5) Excludes debt for prepaid maturities.
(6) Bond convenant requires coverage ratio of 1.25 times Maximum Annual Debt Service
2023 Sewer ULID Debt Service - - - - - - - - - -
2007 Sewer ULID Max Future Annual DS 64,963 64,963 11,394 11,394 11,394 11,394 11,394 11,394 11,394 11,394
2009 Sewer ULID Max Future Annual DS 137,889 137,889 82,680 82,680 82,680 82,680 82,680 82,680 82,680 82,680
202,852 202,852 94,074 94,074 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 202 3 Annual Comprehensive Financial Report
Pasco
Fiscal Year
Ended
December 31 Population 1 Population 5
Kennewick-
Richand 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
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 78,700 219,198 4.50%95,313 27,838 Not Available 72,452 30.50 20,893
2022 80,180 312,050 6.20%102,326 31,401 Not Available 74,044 30.99 20,951
2023 81,280 316,600 3.60%101,100 Not Available Not Available 72,452 18,983
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
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 82,508 4.5%7,766,975 73,775 552,829,984 72,990 1,091,404
2022 84,167 4.2%7,864,400 75,698 589,368,100 Not Available 1,096,304
2023 Not Available 4.4%7,951,150 79,659 Not Available 83,136 1,098,997
SOURCES:
1 State of Washington Office of Financial Management. Per capita income not available for 2022
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 worldpopulationreview.com
6 Unemployment Rate esd.wa.gov
7 bea.gov (2022)
8 fred.stlouisfed.org/series/pcpi53021
Demographic & Economic Information TABLE 1
US Bureau of Labor Statistics
WWW. Census.Gov
washingtonstatereportcard.ospi.k12.wa.us
Demographic and Economic Statistics
Last Ten Fiscal Years
Tri Cities Franklin County
State
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Employees Industry Rank Employer Employees Industry Rank
Battelle/PNNL 4,219 Research and Development 1 Battelle/PNNL 5,300 Research & Development 1
Kadlec Medical Center 2,644 Health Services 3 Kadlec Medical Center 3,800 Health Services 2
Kennewick School District 1,490 Government 9 Kennewick School District 3,043 Education 3
Lamb Weston 2,498 Agriculture Products 4 Lamb Weston 3,000 Food processing 4
Washington River Protection 2,717 Education 2 Pasco School District 2,700 Government 5
Pasco School District 1,512 Government 8 Washington River Protection 2,336 Education 6
First Fruits Farms 2,395 Government 5 First Fruits Farms 2,200 Food Processing 7
Richland School District 1,600 Education 7 Richland School District 2,200 Education 8
CPCCo Government Central Plateau Cleanup Company 2,100 Government 9
Bechtel National 1,922 Education 6 Bechtel National 2,000 Government 10
CH2M Hill Government Government
URS Government Government
Washington Closure Hanford Government
Tyson Foods Agriculture Products
Mission Support Alliance 1,300 Agriculture Products 10 Government
Energy Northwest Research and Development
Source: TRIDEC and Representatives from the employers
Employer Employees Industry Rank Employer Employees Industry Rank
Lamb Weston 766 Community College 3 Lamb Weston 3,000 Food processor 2
Pasco School District Pasco School District 3,363 K-12 1
Coyote Ridge Correction Facility 320 City services 6 Coyote Ridge Correction Facility 701 Correction Facility 4
Columbia Basin College Columbia Basin College 1,254 Community College 3
Walmart 807 Retail 2 Walmart 480 Retail 6
City of Pasco 350 Food processor-vegetables 5 City of Pasco 483 City Services 5
Tri-City Community Health 210 Fruit packaging 9 Tri-City Community Health 307 Health Care 10
Lourdes Health Network 571 Manufacturing 4 Lourdes Health Network 595 Health Care 8
Pasco Processing 230 Food processor-potatoes 7 Pasco Processing 607 Food processor-vegetables 7
Douglas Fruit 290 County Serbvices 8 Douglas Fruit 320 Fruit packaging 9
Resers
Franklin County
West Communications
Source: TRIDEC and Representatives from the employers
*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.
Principal Employers
Current Year & 9 years prior
Year Ended December 31
2023
2023
Tri Cities*
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.
2014
2014
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Employment Sector 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Goods Producing 1,400 14,600 14,900 16,600 17,300 18,200 18,800 19,600 20,000 21,300
Natural resources & construction 6,300 6,700 7,200 8,600 9,500 9,600 10,800 11,100 10,600 10,500
Manufacturing 7,700 7,900 7,700 8,000 7,800 8,600 8,000 8,500 9,400 10,800
Service providing 89,700 92,700 96,200 99,700 99,100 101,900 99,900 100,000 105,300 106,200
Private services providing 71,100 73,700 76,100 76,000 78,900 81,400 81,800 80,700 85,800 85,900
Trade, transportation, warehousing & utilities 5,900 6,000 6,200 6,100 6,300 6,400 6,600 6,800 7,600 4,100
Retail trade 12,100 12,700 13,900 13,200 13,700 14,100 14,500 14,800 14,400 14,300
Financial activities 3,900 4,000 3,900 3,900 4,200 4,300 4,000 4,200 4,300 4,400
Professional & business services 20,700 21,200 21,200 21,400 21,400 22,200 23,400 19,900 22,700 22,400
Information 800 900 900 900 700 800 800 700 700 800
Administrative & support services 10,400 10,800 11,700 11,200 11,900 12,500 12,900 11,200 12,400 11,900
Education & health services 14,400 14,800 15,400 15,500 17,000 17,600 18,000 19,600 19,700 20,200
Leisure and hospitality 9,900 10,400 11,200 11,300 11,800 12,200 12,100 11,400 12,700 12,400
Food services 7,300 7,600 8,400 8,600 9,000 9,200 7,000 9,400 9,900 9,600
Government 18,600 19,000 20,100 20,100 20,200 20,500 18,100 19,300 19,500 20,300
Federal & State government 4,300 4,300 4,400 4,400 1,200 1,300 4,200 4,500 4,100 1,300
Local government 14,300 14,700 15,700 15,700 16,100 16,200 13,900 14,800 15,400 16,00
Total Non-Agriculture 103,700 107,300 111,100 112,700 117,300 121,000 118,700 119,600 125,300 127,500
Total Private 85,100 88,300 91,000 92,600 96,200 99,600 100,600 100,300 105,800 107,200
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
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
2022 278 93,897$ 2,243 323,284$ 558 144,432$ 67 50,637$ 2,868 322,174$
2023 256 81,115$ 2,271 110,291$ 514 210,477$ 64 83,760$ 2,849 404,528$
SOURCE:
1 City of Pasco website Building Permit History.
2 Includes single family and mobile home
TotalCommercialResidental 2 Industrial
Building Permits
Last Ten Fiscal Years
($ amounts expressed in thousands)
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General government 49 50 54 53 57 56 62 63 65 102
Public safety
Muni Court 15 15 15 15 15 15 15 16 16 18
Police
Officers 71 71 77 78 81 83 83 83 87 98
Civilians 12 12 10 10 10 9 9 9 9 12
Fire
Firefighters and officers 35 39 36 37 40 39 40 38 39 48
Ambulance 19 19 32 38 40 41 42 44 45 57
Physical enviroment
Utilities
Water 20 22 24 22 22 23 23 24 24 32
Sewer 19 21 20 20 20 19 19 20 22 26
Water process reuse 2 2 3 7 7 7 7 7 7 9
Storm water 5 6 6 7 8 9 9 9 9 9
Irrigation 4 4 5 3 3 3 3 3 3 3
Transportation
Highways and streets
Engineering 17 17 17 17 17 17 9 11 14 17
Maintenance 7 8 10 10 10 9 8 7 7 7
Health and human services 3 3 3 3 3 3 6 6 7 20
Economic enviroment 16 16 15 16 16 16 25 25 28 33
Culture and recreation 16 17 18 19 20 21 20 20 20 16
Total 310 322 345 355 369 370 380 385 402 507
Source: Annual Operating Budget
https://www.pasco-wa.gov/1235/2023-2024-Budget
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Fiscal Year Ended December 31
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Public Safety
Police
Violent crime 183 156 146 143 166 188 197 201 260 247
Nonviolent crime 1,516 1,482 1,689 1,432 1,280 1,382 1,450 1,635 2,352 1,830
Calls for service 52,067 49,575 55,407 57,250 66,815 40,453 53,907 52,071 57,831 55,145
Victims per 1000 population 40 25 38 20 19 21 21 23 33 26
Fire & Emergency Medical Service
Number of emergency response-FIRE 241 281 243 289 313 204 186 200 189 231
% of total incidents-FIRE*5%6%5%5%5%4%3%3%2%3%
Number of emergency response-EMS 3,731 4,011 3,960 4,105 4,192 4,039 4,424 5,337 5,598 5,682
% of total incidents-EMS*79%79%77%75%74%78%78%78%72%71%
Number of emergency response-OTHER*730 805 914 1,116 1,186 941 1,088 1,286 1,988 2,126
% of total incidents- OTHER*16%16%18%20%21%18%19%19%26%26%
Community Development
Number of new Single Family units 219 243 387 468 485 585 525 354 266 251
Number of new Muli Family units 8 0 0 1 1 3 0 1 11 4
Number of new Manufactured units 4 5 2 6 4 3 14 12 12 5
Commercial permits 341 415 479 501 498 485 436 465 558 514
Construction value (millions)96.4 84.9 144.4 66.3 76.7 98.5 132.2 176.4 144.4 210.5
Residential permits 1,517 1,724 1,941 2,115 2,188 2,270 2,480 2,362 2,243 2,271
Construction value (millions)67.4 83.0 110.8 134.5 143.3 169.1 151.4 122.7 127.1 110.3
Physical environment
Highway and streets
Street resurfacing (miles)*3.57 9.63 0.00 0.00 0.00 3.9 0.0 1.0 2.8 4.8
Utilities
Water
Bills processed 227,682 233,858 239,670 242,916 248,347 274,138 263,115 271,092 293, 914 283,156
New connections 340 438 568 672 589 724 584 413 367 334
Water meters replaced 1,471 1,499 1,117 187 146 39 41 17 39 101
Source: Various City of Pasco departments.
Operating Indicators by Function
Last Ten fiscal years
Year Ended December 31
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Amounts Amounts
No. of Permits in Thousands in Millions
Commercial 514 210,477$ 210$
Less Multi-Family 4 71,313 71
Industrial 64 83,760 84
574 222,924
Mobile Home 5 440 -
Plus Commercial Multi Family 4 71,313 71
Residential 2,266 109,851 110
2,275 181,604 182
Total 2,849 404,528 182
Single Family:
SFDU 251 80,675 81
Mobile Home 5 440 -
Total 256 81,115$ 81$
Building Permits
City of Pasco
Year ended December 31, 2023
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Sub-Stations 4 4 4 4 4 4 4 4 4 1
Patrol units 58 39 54 61 64 66 66 66 66 67
Fire stations 3 3 3 3 3 4 4 4
Culture and recreation
Parks *27 21 24 28 28 28 28 31 32 32
Parks acreage *320 323 329 375 28 388 388 466 471 467
Swimming pools 2 2 2 2 2 2 2 2 2
Physical environment
Streets
Street (miles)839 843 669 675 665 738 750 754 767 764
Street lights 3,476 3,532 3,413 3,505 4,369 4,315 4,567 4,570 4,581 4,595
Traffic signals *50 50 50 51 51 52 52 52 53 53
Water
Water mains (miles)315 323 310 323 360 414 419 433 421 430
Services (accumulated total)16,783 17,206 17,248 20,079 21,708 22,874 23,164 23,361 23,871 23,831
Fire hydrants 2,138 2,214 2,190 2,724 2,836 2,906 3,015 3,043 3,062 3,168
Maximum daily capacity
Million Gallons per Day (MGD)30 32 33 33 33 33 33 33 33 33
Sewer
Sanitary sewer (miles)266 269 269.89 275.06 256 261.5 266 276 269 277
Maximum daily treatment
capacity (MGD) 7.1 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 8
Average daily treatment (MGD) *4.5 5.0 5.2 5.4 5.4 5.2 5.3 5.3 5.3 5.3
Water Process Reuse
Irrigated acres 1,848 1,848 1,832 1,856 1,856 2,277 1,856 1,856 1,856 1,901
Total Acres 2,200 2,200 2,200 2,200 2,200 2,360 2,368 2,368 2,368 2,368
Storm Water
Storm sewer (miles)47 48 49 51 88 96 98 99 94 96
Number of catch basins 3,336 3,451 3,508 3,705 5,163 5,333 5,567 5,674 5,751 6,487
Irrigation
Irrigation mains (miles) 96 101 101 168 174 176 166 171
Maximum daily capacity (thousand of
gallons) 20,760 20,760 20,760 32,760 21,013 21,013 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 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Water System Accounts by Class
Single Family Residential 15,969 16,355 16,687 17,471 18,035 18,723 19,054 19,650 19,962 20,139
Multi-Family Residential 482 496 505 491 496 499 497 499 505 511
Commercial 1,372 1,430 1,443 1,470 1,524 1,528 1,555 1,603 1,570 1,626
Other 455 476 486 426 441 429 524 543 592 947
Total 18,278 18,757 19,121 19,858 20,496 21,179 21,630 22,295 22,629 23,223
Sewer System Accounts by Class
Single Family Residential 14,133 14,450 14,904 15,405 15,870 16,502 16,792 17,346 17,652 17,762
Multi-Family Residential 497 512 527 524 533 533 531 535 543 499
Commercial 1,004 1,125 1,128 1,137 1,183 1,177 1,203 1,152 1,167 1,416
Total 15,634 16,087 16,559 17,066 17,586 18,212 18,526 19,033 19,362 19,677
Stormwater System Customer Accounts 17,781 18,585 18,585 19,445 19,697 20,652 20,941 21,487 21,919 21,893
Irrigation System Customer Accounts 6,604 6,863 6,863 7,495 7,956 8,355 8,634 8,991 9,072 9,047
Process Water Reuse Facility Customers
CRF Frozen Foods-Bybee Food 19%19%15%9%17%0%0%0%0%0%
Darigold 0%0%0%0%0%0%0%0%0%9%
Freeze Pak 0%0%0%0%0%0%0%0%0%2%
Grimmway 0%0%0%0%0%0%0%0%20%7%
JR Simplot 0%0%0%0%0%25%17%17%18%23%
Pasco Processing 41%42%44%47%41%41%53%55%36%35%
Reser's Fine Food 18%16%15%23%23%18%13%9%9%9%
Twin City Foods 22%23%26%29%19%16%17%19%17%15%
100%100%100%108%100%100%100%100%100%100%
1Darigold & Freeze Pak added in 2023
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 202 3 Annual Comprehensive Financial Report
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Water rates and monthly charges
Inside city rates listed; outside city 90% surcharge
Consumption per 100 cu feet 0.68$ 0.70$ 0.74$ 0.77$ 0.81$ 0.83$ 0.85$ 0.88$ 0.94$ 1.00$
Single family residential monthly base (in city)
Size of Service
3/4 inch 16.25 16.25 17.06 17.92 18.81 19.37 19.96 20.55 21.89 23.31
1 inch 24.35 24.35 25.57 26.85 28.19 29.04 29.91 30.81 32.82 34.95
Multi-family and commercial monthly base
Size of Service
3/4 inch 22.90 22.90 24.05 25.25 26.51 27.31 28.13 28.97 30.85 32.86
1 inch 33.05 33.05 35.18 36.93 38.78 39.94 41.14 42.37 45.12 48.05
1 1/2 inch 64.50 64.50 67.73 71.11 74.67 76.91 79.22 81.60 86.90 92.55
2 inch 103.45 103.45 108.62 114.05 119.76 123.35 127.05 130.86 139.37 148.43
3 inch 141.30 141.30 148.37 155.78 163.57 168.48 173.53 178.74 190.36 202.73
4 inch 203.60 203.60 213.78 224.47 235.69 242.76 250.04 257.54 274.28 292.11
6 inch 317.80 317.80 333.69 350.37 367.89 378.93 390.30 402.01 428.14 455.97
8 inch 440.40 440.40 462.42 485.54 509.82 525.12 540.87 557.10 593.31 631.88
Irrigation monthly charge
Base per residential unit 26.00 26.00 26.00 27.30 28.12 28.96 29.83 30.73 31.65 31.65
Per Irrigation unit 8.12 8.12 8.12 8.53 8.79 9.05 9.32 9.60 9.89 9.89
Per Irrigated acre 75.81 75.81 75.81 79.60 81.99 84.45 86.98 89.59 92.28 92.28
Sewer rates and monthly charges
Inside city rates listed; outside city 50% surcharge
Residential monthly base <= 4 units 24.80 24.80 27.22 29.67 31.45 32.71 34.02 35.38 35.38 35.38
Residential monthly base > 4 units 20.00 20.00 21.95 23.93 25.36 26.37 27.43 28.53 28.53 28.53
No residential consumption charge 8.30
Commercial base rate 33.35 33.35 36.60 39.90 42.29 43.98 45.74 47.57 47.57 47.57
Consumption per 100 cu ft over 1000 cu ft 5.25 1.29 1.42 1.54 1.64 1.71 1.78 1.85 1.85 1.85
Stormwater monthly charge
Residential
Single family residential 4.40 4.90 4.90 4.90 5.64 5.92 6.21 6.52 6.85 6.85
Apartments (per unit)2.20 2.45 2.45 2.45 2.82 2.96 3.11 3.26 3.42 3.42
Multi-family residential (per unit)2.20 2.45 2.45 2.45 2.82 2.96 3.11 3.26 3.42 3.42
Undeveloped parcels - - -
Vacant buildings 4.40 4.90 4.90 4.90 5.64 5.92 6.21 6.52 6.85 6.85
Industrial/Commercial
Parking for 0-5 vehicles 4.40 4.90 4.90 4.90 5.64 5.92 6.52 6.52 6.85 6.85
Parking for 6-10 vehicles 8.80 9.80 9.80 9.80 11.27 11.83 13.04 13.05 13.70 13.70
Parking for 11-15 vehicles 13.20 14.70 14.70 14.70 22.54 23.67 19.56 26.09 27.40 27.40
Parking for 16 plus vehicles 17.60 19.60 19.60 19.60 28.18 29.58 32.60 32.62 34.25 34.25
Additional charges
Property runoff to City systems ($1.25 min) - acre 86.71 86.71 86.71 86.71 111.16 116.72 122.55 128.68 135.11 135.11
State Highway right-of-way - acre 21.71$ 21.71$ 21.71$ 21.71$ 26.97$ 28.32$ 29.73$ 31.22$ 32.78$ 32.78$
Source: City of Pasco Municipal Code Title 3
Waterworks Selected Utility Rates
Last Ten Fiscal Years
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
PEANUTS PARK AND PASCO FARMERS MARKET
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
STATE REQUIRED SCHEDULES
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
MCAG NO. 0292
Schedule 9 -Schedule of Liabilities
For the Year Ended December 31, 2023
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 13,559,000 455,100 13,103,900
251.11 Councilmanic 2019 LTGO Gesa Stadium 12/01/2049 1,505,500 49,950 1,455,550
251.11 Councilmanic 2019 LTGO Animal Shelter 12/01/2049 1,505,500 49,950 1,455,550
251.11 Councilmanic 2015 LTGO Police Station 12/01/2035 6,440,000 390,000 6,050,000
251.11 Councilmanic 2023 LTGO Animal Shelter - Annex 12/01/2043 - 1,638,000 - 1,638,000
251.11 Councilmanic 2023 LTGO Fire Station No. 85 12/01/2043 - 7,938,000 - 7,938,000
251.11 Councilmanic 2023 LTGO Pool Improvements 12/01/2043 - 1,134,000 - 1,134,000
251.11 Councilmanic 2023 LTGO City Hall Improvements 12/01/2043 - 756,000 - 756,000
251.11 Councilmanic 2023 LTGO Gesa Stadium 12/01/2043 - 1,134,000 - 1,134,000
263.81 Loans & Other Oblig to Federal Govt 2021 HUD Section 108 Loan 12/01/2040 3,401,000 190,000 3,211,000
263.56 Leases All current Lease Liabilities N/A 1,973,069 4,613,189 749,128 5,837,130
263.56 Subscription Based IT Arrangement (SBITA)2023 SBITA Liabilities N/A 2,228,106 837,008 1,391,098
TOTAL GENERAL OBLIGATIONS 28,384,069 19,441,295 2,721,136 45,104,228
REVENUE OBLIGATIONS
252.11 Revenue Bond 2013A Sewer Bond 12 12/01/2028 1,305,000 1,305,000 -
252.11 Revenue Bond 2013T Reuse Facility Bond 12 12/01/2028 3,555,000 3,555,000 -
252.11 Revenue Bond 2015 Water/Sewer Revenue Refunding 12/01/2040 11,415,000 260,000 11,155,000
252.11 Revenue Bond 2017 Water/Sewer Improvement Revenue1 12/01/2042 9,415,000 - 9,415,000
252.11 Revenue Bond 2020A Water/Sewer Revenue Bond 12/01/2029 5,755,000 730,000 5,025,000
252.11 Revenue Bond 2020B PWRF Revenue Bond 12/01/2050 15,475,000 385,000 15,090,000
252.11 Revenue Bond 2023A Water/Sewer Revenue Bond 8 12/01/2043 - 20,845,000 20,845,000
252.11 Revenue Bond 2023B PWRF Revenue Bond 9 12/01/2043 - 12,400,000 12,400,000
263.84 Loans & Other oblig to state agencies DM15-952-037 Columbia Water supply DM15-952-037 10/01/2034 4,795,884 399,657 4,396,227
263.84 Loans & Other oblig to state agencies DWL26037 DWSRF WP WTP Ph 1 2 10/01/2040 5,047,368 303,000 252,799 5,097,569
263.84 Loans & Other oblig to state agencies DWL27107 DWSRF WP WTP Ph 2 7 10/01/2042 1,582,868 4,421,051 108,714 5,895,205
263.84 Loans & Other oblig to state agencies PCL28205 DWSRF Butterfield WTP PH 10 10/01/2033 - 23,636 23,636
263.84 Loans & Other oblig to state agencies WQC-2021-Pasco-00020 Clean Water Preservation5 06/30/2044 4,892,742 256,382 5,149,124
263.84 Loans & Other oblig to state agencies WQC-2021-Pasco-00044 Clean Water Preservation6 06/30/2044 14,454,076 4,374,449 18,828,525
263.84 Loans & Other oblig to state agencies WQC-2024-Pasco-00007 Clean Water Preservation4 12/30/2044 - 5,500,000 5,500,000
263.88 PWB Loan PC22-96103-049 Reservoir Storage Tank Zone 3 06/01/2041 5,304,749 4,695,251 354,458 9,645,542
263.88 PWB Loan PR18-96103-065 PWRF Pre-treatment Improvements 06/01/2024 837,070 - 418,535 418,535
263.86 Loans & Other Oblig to other gvts HAEIFAC - Reuse Facility Improvement Loan 07/01/2028 914,171 - 140,480 773,691
263.84 Loans & Other oblig to state agencies WQC-2021-Pasco-00144 Clean Water Preservation 06/30/2044 770,334 729,666 1,500,000
263.84 Loans & Other oblig to state agencies WQC-2024-Pasco-00091 Clean Water Preservation3 12/30/2044 - 8,383,220 8,383,220
263.84 Loans & Other oblig to state agencies S23-790A0-257 Dept of Commerce CERB11 07/31/2044 - 4,250,000 4,250,000
259.12 Accrued Leave Compensated Absences 12/31/2023 3,967,317 3,644,667 3,210,590 4,401,394
264.4 OPEB Liability Other Post Employment Benefits 12/31/2023 8,499,941 - 1,813,530 6,686,411
264.3 Pension Liability Pension Liabilities 12/31/2023 2,603,021 - 95,943 2,507,078
TOTAL REVENUE OBLIGATIONS 100,589,541 69,826,322 13,029,706 157,386,157
TOTAL LIABILITIES 128,973,610$ 89,267,617$ 15,750,842$ 202,490,385$
Notes to Schedule of Long-Term Liabilities
1This bond requires interest only payments until 2030.
2New DWSRF loan issued by the Water/Sewer Utility in 2022 to be used for Water/Sewer infrastructure improvements. DWSRF has held back 500,000 in reimbursement until project is complete
4 2024 Department of Ecology Loan- Water Quality Combined Financial Assistance to be used for WWTP infrastructure Total loan $26,283,195 recorded draw $5,500,000
6WQC-2021-Pasco-00044 Clean Water loan is approved for $21,511,498 and recorded draws $18,828,525
7DWL27107 DWSRF WPWTP Ph2 2 loan is approved for $9,753,259. and recorded draws $6,003,919
8New revenue bonds issued by the Water/Sewer Utility in 2023 to be used for Utility infrastructure improvements.
9New revenue bonds issued by the Water/Sewer Utility in 2023 to be used for Utility infrastructure improvements.
10New DWSRF Loan in the amount of $510,000 drawn to date $23,636
11New CERB Dept of Commerce loan used for PWRF improvemetns
122013 (A) & (T) were refunded in 2023
3 2024 Department of Ecology Loan- Water Quality Combined Financial Assistance to be used for WWTP total loan $34,934,159 drawn to date $8,383,220 Dept of Commerce has held back 500,000 in reimbursement until project
is complete
5WQC-2021-Pasco-00020 Clean Water loan was approved $4,932,429 amended in 2023 600k added total of 5,532,429. Recorded draws of $5,149,124. In procees of amending loan by $383,305. Final draw has
been made in amt of $5,149,124
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
Grantor/
Pass-Through Grantor STATE
Program Title AWARDS
Washington State Department of Ecology
Biennial Stormwater Capacity WQSWCAP-2123-Pasco-00164 25,000
Biennial Stormwater Capacity WQSWCAP-2325-Pasco-00109 94,676
Shorelands Shoreline Master Program Agreement SEASMP-2123-Pasco-00188 28,000
147,676
Department of Recreation Conservation Office
Schlagel Park Boating Facilities Upgrade 66,084
A Street Sport Complex 312,193
378,276
Washington State Department of Commerce
Community Economic Revitalization Board (CERB) grant S23-790A0-257 238,533
Housing Action Plan Implementation (HAPI) Grant 22-63314-029 100,000
338,533
Washington State Office of Public Defense
Public Defense Grant 2022-2023 GRT 22070 45,438
45,438
Washington State Transportation Improvement Board
Lewis Street Overpass STPUS-HLP-STPD-3530(006)4,906,265
Lewis Street Overpass 8-4 174(020)-1 2,092,549
6,998,813
Washington State Department of Transportation
Sylvester Street Safety Improvements HSIP-HLP-3528(003)98,998
98,998
Washington State Department of Health
2023 EMS Trauma Pass-Through 554
554
Washington State Administrative Office of the Courts
Rural Court Security Program 7,618
State vs. Blake Senate Bill 5187, Section 114(3)31,085
Blake Decision 19,041
Audio & Visual System Grant 31,232
Therapeutic Court Program (Community Resource Justice Coordinator)IAA2982 168,538
257,514
Office of the Secretary of State,
Archives & Records Management OSOS G-7273 10,578
10,578
State Grant from Legislature and its Committees
WASPC Use of Force/Duty to Intervene - 2023 HB1310/SB 5066/HB 1735/HB2037 34,970
34,970
TOTAL STATE AND LOCAL ASSISTANCE:8,311,351$
Identification
MCAG NO. 0292
CITY OF PASCO
SCHEDULE 15- SCHEDULE OF STATE FINANCIAL ASSISTANCE
For the Year Ended December 31, 2023
Other
IAA23955
Number
18-2355 DEV
18-1360 DEV
IAA24491
IAA24112
IAA23761
City of Pasco, Washington 202 3 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 Subrecipie
nts Note
US Department of Housing and Urban Development
Department of Housing & Urban Development Community Development Block Grant 14.218 B-18-MC-53-009-CDBG 16,940 16,940 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-20-MC-53-009-CDBG 330,318 330,318 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-21-MC-53-009-CDBG 137,252 137,252 1
Department of Housing & Urban Development Community Development Block Grant 14.218 B-23-MC-53-0009 635,220 635,220
Total CDBG- Entitlement Grants Cluster 14.218 - 1,119,729 1,119,729
Department of Housing & Urban Development (Via WA Dept. of Commerce)Community Development Block Grant 14.228 20-6221C-161 64,307 64,307 1
Total CDBG- Department of Commerce 14.228 64,307 - 64,307
Department of Housing & Urban Development (Via City of
Richland)Home Investment Partnerships Program 14.239 Home Program - 2023-2025 39,049 - 39,049 1 & 3
Total CFDA 14.239 39,049 - 39,049
US Department of the Interior
US Department of the Interior (Via WA Department of
Archaeology & Historic Preservation)
Historic Preservation Fund's
Underrepresented Communities 15.904 P18AP00010-0002 16,000 - 16,000 1
Total CFDA 15.904 16,000 - 16,000
US Department of Justice
Department of Justice COVID-19 Coronavirus Emergency
Supplemental Funding Program 16.034 2020-VD-BX-0545 19,999 19,999 1
Department of Justice COVID-19 Coronavirus Emergency
Supplemental Funding Program 16.034 PA-WAE-0132 7,312 7,312
Total CFDA 16.034 - 27,311 27,311
Department of Justice (Via WA Department of Commerce)Violence Against Women 16.588 F22-31103-034 34,698 34,698 1
Total CFDA 16.588 34,698 - 34,698
-
Department of Justice (Via WA Department of Commerce)JAG grant 16.738 F22-34440-501 28,318 28,318 2
Total CFDA 16.738 28,318 - 28,318
Department of Justice Bullet Proof Vest Partnership Prog 16.607 - 34,692 34,692 1
Total CFDA 16.607 - 34,692 34,692
Department of Justice (Via US Marshalls)Equitable Sharing Program 16.922 Equitable Sharing 5,350 5,350 1
Total CFDA 16.922 - 5,350 5,350
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)62,256 62,256 1
US Department of Transportation, Federal Highway
Administration (Via WA State Department of Transportation)Highway Planning and Construction 20.205 HSIP‐3534 (004)65,071 65,071 1
US Department of Transportation, Federal Highway
Administration (Via WA State Department of Transportation)Highway Planning and Construction 20.205 HSIP-000S (650)15,870 15,870 1
US Department of Transportation, Federal Highway
Administration (Via WA State Department of Transportation)Highway Planning and Construction 20.205 STPUL 3552 (002) LA 9952 1,402,786 1,402,786 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 2,703,647 2,703,647 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 58,595 58,595 1
US Department of Transportation, Federal Highway
Administration (Via WA State Department of Transportation)Highway Planning and Construction 20.205 NHPP-3524 (007) LA 10236 1,835,165 1,835,165 1
US Department of Transportation, Federal Highway
Administration (Via WA State Department of Transportation)Highway Planning and Construction 20.205 NHPP-0397 (014) LA 10237 107,313 107,313 1
Total Highway Planning and Construction 20.205 6,250,703 - 6,250,703
continued on next page
City of Pasco
MCAG NO. 0292
SCHEDULE 16- SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2023
City of Pasco, Washington 202 3 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 Subrecipie
nts Note
Highway Safety Cluster
US Department of Transportation, National Highway Traffic
Safety Administration (Via WA Traffic Safety Commission)State and Community Highway Safety 20.600 2024-HVE-5124-Region 14 Target Zero
Task Force 2,183 2,183 1 & 2
US Department of Transportation, National Highway Traffic
Safety Administration (Via WA Traffic Safety Commission)State and Community Highway Safety 20.600 2023-HVE-4695-Region 14 Target Zero
Task Force 12,053 12,053 1 & 2
US Department of Transportation, National Highway Traffic
Safety Administration (Via WA Traffic Safety Commission)State and Community Highway Safety 20.600 2023-Sub-grants-4757-Region 14 LEL-
Pasco 1,276 1,276
Total Highway Safety Cluster 15,512 - 15,512
US Department of the Treasury
US Department of the Treasury Coronavirus State and Local Fiscal
Recovery Funds 21.027 N/A 6,447,025 6,447,025 - 1
Total US Department of the Treasury - 6,447,025 6,447,025
US Department of Health & Human Services
US Department of Health & Human Services (Environmental
Protection Agency(via WA St Department of Health Drinking Water State Revolving Loan 66.468 DWL27107 4,421,051 - 4,421,051 1
US Department of Health & Human Services (Environmental
Protection Agency(via WA St Department of Health Drinking Water State Revolving Loan 66.468 DWL26037 303,000 - 303,000 1
Total Drinking Water State Revolving Fund Cluster CFDA 66.4684,724,051 - 4,724,051
US Department of Homeland Security
US Department of Homeland Security, FEMA (Via
Washington State Military Department)Public Assistance 97.036 FEMA-4650-DR-WA 10,289 10,289 1
Total CFDA 97.036 10,289 - 10,289
US Department of Homeland Security, FEMA Franklin County Emergency Mngt (FCEM)97.067 E23-092 18,153 - 18,153 1
Homeland Security Grant Program Total CFDA 97.067 18,153 - 18,153
US Department of Homeland Security, FEMA Franklin County Emergency Mngt (FCEM)97.083 E23-092 - 1,465,185 1,465,185 1
Homeland Security Grant Program
Total CFDA 97.083 - - 1,465,185 - 1,465,185
TOTAL FEDERAL AWARDS EXPENDED:11,201,081$ 9,099,292$ 20,300,373$ -$
City of Pasco
MCAG NO. 0292
SCHEDULE 16- SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2023
The accompanying notes are an integral part of this schedule.
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
City of Pasco
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2023
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 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 $39,049 and is presented in this schedule. The
amount of principal and interest in loan repayments received for the year was $50,887.
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 Requi rements 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 in 2021 to renovate Peanuts Park
within the City’s downtown area. The amount listed for this loan includes the expenses funded with the
loan proceeds within the current fiscal year. The balance owing at the end of the period is $3,211,000
which is reported on the City’s Schedule of Liabilities.
City of Pasco, Washington 202 3 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, 2023
Total current public work construction budget as amended (annual or 320,078,477
biennial as applicable)
Allowable portion of total public works (10 percent of line 1)32,007,848
Less: Amount (if any) in excess of permitted amount from prior budget
period.-
Total allowable public works (line 2 minus line 3)32,007,848
Total public works projects performed by public employees during the
current year (include work performed by a county)867,062.88
If this is the second year of a biennial budget, total public works projects
performed by public employees during the first year of biennium -
Restricted under (over) allowable (line 4 minus line 5 minus line 6)31,140,785
NOTE: If the restricted amount is over allowable, this amount must be carried forward
to the next budget period report.
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
MCAG No. 0292
Schedule 21 ____________________________
(County/City/District)
Local Government Risk Assumption
For the Year Ended December 31, 2023
1. Self-Insurance Program Manager: _______________________
2. Manager Phone: _____________________________________
3. Manager Email: _____________________________________
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
Sara Matzen
509-545-3473
matzens@pasco-wa.gov
City of Pasco, Washington 202 3 Annual Comprehensive Financial Report
If the local government DID NOT answer (a) to any of the above questions, then there is no need to
complete the rest of this schedule.
If the local government answered (a) to any of the above questions, then answer the rest of the form
in relation to the government’s self-insured risks and copy the table below as needed.
Please list the title of the self-insurance program or type of risk
covered by self-insurance:
Medical Dental Program/Risk 3 Program/Risk 4 Program/Risk 5
Self-Insurance as a formal program? Yes Yes
If yes, do other governments
participate?
No No
If yes, please list participating
governments.
N/A N/A
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?
20,038 2,237
Total amount of paid claims during the
period?
5,631,705.57 528,287.72
Total amount of recoveries during the
period?
0 0
Provide any other information necessary to explain answers to the Schedule 21 questions above.
City of Pasco, Washington 202 3 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.
Darcy Buckley
Finance Director
Griselda Garcia
Finance Manager
Veronica Perez
Lead Accountant
Aileen Coverdell
Lead Accountant
Karen Conn
Staff Accountant
Cindy Hill
Staff Accountant
Charlene Sandland
Staff Accountant
Joseph Mugo
Staff Accountant
Julie Grant
Staff Accountant
Suzie Benitez
Staff Accountant
Vanessa Flores
Administrative Assistant