HomeMy WebLinkAbout2025.10.21 PPFD Meeting PacketPasco Public Facilities District Board
Building Regional Facilities through Community Partnerships
AGENDA
4:00 PM - Tuesday, October 21, 2025; Pasco City Hall, Council Chambers & Microsoft
Teams Meeting
Page
I. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would
like to provide public comment remotely, may continue to do so by filling out
the online form via the City’s website (www.pasco-wa.gov/publiccomment)
to obtain access information to comment. Requests to comment in
meetings must be received by 1:00 p.m. on the day of each meeting. To
listen to the meeting via phone, call (323) 676-6197 and use access code
365 353 198#.
II. Welcome, Call To Order, and Roll Call
III. Recognition of Visitors/Public Comments - This item is provided to allow the
public the opportunity to bring items to the attention of the Pasco Public Facilities
District Board. Its purpose is not to provide a venue for debate or for the posing of
questions with the expectation of an immediate response. Public comments will
normally be limited to three minutes by each speaker. Those with lengthy
messages are invited to summarize their comments and/or submit written
information for consideration by the PPFD Board outside of formal meetings. Lastly,
when called upon, please state your name and city or county residency before
providing your comments.
IV. Approval of Minutes
4 - 7 A. Approve PPFD Board Meeting Minutes
MOTION: I move to approve the PPFD Board minutes from the
September 16, 2025, meeting.
V. Claims Approval
8 A. Approval of PPFD Monthly Accounts Payable Claims
MOTON: I move to approve the September 2025 PPFD claims
(accounts payable) in the amount of $ 2,857,548.17.
VI. Financial Report
9 - 16 A. September 2025 Balance Sheet, Budget Performance Report,
Local Tax Distribution Report, Local Sales Tax Percentage, and
Aquatic Center Budget Tracker Report
17 - 50 B. Financial Audit Report ( Perez)
Page 1 of 78
C. Arbitrage Analysis (Perez & Watkins)
VII. Reports from Committees
A. Design & Construction Committee (Gillespie & Jilek; Alternate
Morrissette)
B. Budget & Finance Committee (Morrissette & Bowdish; Alternate
Jilek)
1. Association of Washington State Public Facilities Districts
(AWSPFD) Conference Recap (Bowdish & Watkins)
VIII. Old Business
IX. New Business
51 - 52 A. Approve Change Orders for Aquatic Facility Construction
Project (Gardner & Watkins)
MOTION: I move to approve Change Orders PCO 012, PCO 014,
and PCO 015 for the Aquatic Facility Construction Project as
presented in total amount of $321,356.32.
53 - 60 B. Resolution No. 2025-05 - Amended Interlocal Agreement with
City of Pasco Related to Legal Counsel Services
MOTION: I move to approve Resolution No. 2025-05, approving an
amended Interlocal Agreement with the City of Pasco related to legal
counsel services.
X. Other Business
A. Attorney Report (Ferguson)
1. Timeline to ILA Update for Management and Maintenance
(anticipated approval by Pasco City Council in December
2025)
B. Pasco Operations and Maintenance (Rice)
61 - 76 C. Owner’s Representative Report (Gardner)
1. Monthly Report
D. Ambassador Committee Report
77 - 78 E. PPFD Executive Director Report (Watkins)
Page 2 of 78
1. Branding and Marketing Update
2. Director Approved Contingency Changes
3. Attorney RFQ Update
F. Next PPFD Board Meeting Scheduled for Tuesday, November 18,
2025
XI. Executive Session
XII. Adjournment
Page 3 of 78
Pasco Public Facilities District Board
MINUTES
4:00 PM - Tuesday, September 16, 2025; Pasco City Hall, Council Chambers & Microsoft
Teams Meeting
WELCOME, CALL TO ORDER, AND ROLL CALL
Pasco Public Facilities District (PPFD) President Morrissette welcomed
members of the audience and called the meeting to order at 4:03 PM.
Board Members Present: President Mark Morrissette, Vice President Marie
Gillespie, and Board Member Spencer Jilek
Board Members Absent: Secretary/Treasurer Caroline Bowdish and Board
Member Leonard Dietrich
Board Staff Present: PPFD Executive Director Matt Watkins
City Council & Staff Present: City Attorney Eric Ferguson, Finance Director
Communications & Engagement Strategist Laurel McQuade and City Clerk
Debby Barham
RECOGNITION OF VISITORS/PUBLIC COMMENTS
No one came forward for comments
APPROVAL OF MINUTES
Approve PPFD Board Meeting Minutes
MOTION: Dr. Jilek moved to approve the PPFD Board minutes from the
August 19, 2025, meeting. Seconded by Ms. Gillespie. Motion carried
unanimously. 3-0
CLAIMS APPROVAL
Approval of PPFD Monthly Accounts Payable Claims
Ms. Perez provided a brief report on the accounts payable report.
MOTON: Dr. Jilek moved to approve the August 2025 PPFD claims (accounts
payable) in the amount of $2,886,578.59. Seconded by Ms. Gillespie. Motion
carried unanimously. 3-0
Page 1 of 4Page 4 of 78
FINANCIAL REPORT
August 2025 Balance Sheet, Budget Performance Report, Local Tax
Distribution Report, Local Sales Tax Percentage, and Aquatic Center
Budget Tracker Report
Ms. Perez provided a brief overview of financial reports.
REPORTS FROM COMMITTEES
Design & Construction Committee (Gillespie & Jilek; Alternate
Morrissette)
Ms. Gillespie reported on the status of the construction site and announced that
the strike may have been resolved.
Mr. Gardner confirmed that the strike is over and he is hopeful that the
construction remains on schedule.
Ms. Gillespie reported on the list of betterments.
Budget & Finance Committee (Morrissette & Bowdish; Alternate Jilek)
Mr. Morrissette deferred the report to the New Business section of the meeting
under Item IX.A. "Resolution No. 2025-04 - Branding and Marketing Services."
NEW BUSINESS
Resolution No. 2025-04 - Branding and Marketing Services (Watkins)
Mr. Watkins reported that Mr. Morrissette, Ms. Bowdish, Ms. McQuade and he
met with the branding and marketing finalists and after deliberations are
recommending the PPFD Board approve a Professional Services Agreement
(PSA) with the firm Focal Point for the Aquatic Facility's branding and marketing
services.
The PPFD Board, Mr. Watkins and Ms. McQuade discussed the services that
would be included in the PSA.
MOTION: Dr. Jilek moved to approve Resolution 2025-04, approving the
Professional Services Agreement with Focal Point to perform branding and
marketing services for the Aquatic Facility Project not to exceed $50,000, and
further authorize the PPFD Executive Director execute the contract documents.
Seconded by Ms. Gillespie. Motion carried unanimously. 3-0
OTHER BUSINESS
Page 2 of 4Page 5 of 78
Attorney Report (Ferguson)
Mr. Ferguson reported on the status of the proposed Interlocal Agreement (ILA)
amendment between the City of Pasco and the Pasco Public Facilities District
related to legal counsel services. He noted that the updated ILA will be presented
to Pasco City Council at their September 22nd Workshop with the anticipation
that it will be approved at their October 6th Meeting.
Pasco Operations and Maintenance (Rice)
Mr. Rice stated that he and Mr. Watkins will be presenting to Pasco City Council
at their September 22nd Workshop regarding the management of the aquatic
facility, including the operations and training of lifeguards before the facility opens
for business. This is the next step before an updated management agreement is
approved by both the PPFD Board and City Council.
Owner's Representative Report (Gardner)
Mr. Gardner provided his monthly update on the status of the Aquatic Facility
construction project.
The PPFD Board, Mr. Gardner and Mr. Watkins further discussed the
contingency funds and betterments list.
Ambassador Committee Report
Mr. Watkins thanked Mr. Morrissette for signing a proclamation expressing
appreciation to Mr. Whitemarsh for his support of the Aquatic Facility. It was
presented during a Pasco High Class of 1965 reunion, of which Mr. Whitemarsh
was a class member. Mr. Watkins also gave the class a short tour of the Aquatic
Facility construction site.
PPFD Executive Director Report (Watkins)
Mr. Watkins went over the contingency change report that he included in the
agenda packet. He suggested that the PPFD Board hold a workshop in
November or December 2025 to start discussions on the next milestones of the
project. After the Aquatic Facility opens, the focus will change from construction
to management, planning for Phase 2 of the facility, and the possibility of new
PPFD Board Members and a new Executive Director.
The next PPFD Board Meeting is scheduled for Tuesday, October 21, 2025.
ADJOURNMENT
Page 3 of 4Page 6 of 78
There being no further business, the meeting was adjourned at 4:59 PM.
PASSED AND APPROVED THIS ___ DAY OF __________, 20__
APPROVED:
Mark Morrissette, President Debra Barham, MMC
Page 4 of 4Page 7 of 78
Sep-25
Sum of Amount GL Date
Subledger Account Description Vendor/Customer Item Description Sep
Accounts Payable Advertising TRI CITY HERALD PPFD RFP PLACE IN BID IPL0262492 688.72
Advertising Total 688.72
Legal Combined Services KERR FERGUSON LAW PLLC PPFD LEGAL SERVICES JULY 2025 407.00
Legal Combined Services Total 407.00
Miscellaneous Services VERIZON WIRELESS WIRELESS SVC - PASCO FACILITES DISTRICT JUL 22 - AUG 21 2025 20.02
Miscellaneous Services Total 20.02
Organizational Services CITY OF PASCO AUGUST 2025 - PPFD SUBSIDY 10,062.79
KENNEWICK PUBLIC FACILITIES DISTRICT PFD SALES TAX REC'D BY PASCO AND SENT TO KEN FOR AUG 2025 85,217.97
Organizational Services Total 95,280.76
Professional Services WATKINS ENDEAVOR LLC SERVICES FOR PPFD AUG 2025 10,506.27
FRANKLIN CO - AUDITOR PPFD FINANCIAL AUDIT 2,628.99
BOWMAN CONSULTING GROUP LTD PPFD AQUATIC CENTR OPERATIONS PLAN ANALYSIS 2025 212.50
Professional Services Total 13,347.76
Building & Structure BOUTEN CONSTRUCTION CO PPFD AQUATIC FACILITY PROJECT AUG 2025 2,747,803.91
Building & Structure Total 2,747,803.91
Accounts Payable Total 2,857,548.17
Grand Total 2,857,548.17
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Current YTD Prior Year
Account Account Description Balance Total Actual Net Change Change %
Fund Category External
Fund Type
Fund 931 - Pasco Public Facility District
ASSETS
10
10.1010 Cash 2,525,747.18 9,049,510.53 (6,523,763.35)(72.09)
10 - Totals $2,525,747.18 $9,049,510.53 ($6,523,763.35)(72.09%)
11
11.1130 Investments 9,000,000.00 .00 9,000,000.00 +++
11.1141 Investments-Restricted Bond Reserve 27,000,000.00 .00 27,000,000.00 +++
11 - Totals $36,000,000.00 $0.00 $36,000,000.00 +++
12
12.1210 Taxes Receivable - Sales .00 1,060,600.93 (1,060,600.93)(100.00)
12 - Totals $0.00 $1,060,600.93 ($1,060,600.93)(100.00%)
15
15.1539 Restricted Cash - Bond Proceeds ST 956,088.82 42,854,852.46 (41,898,763.64)(97.77)
15 - Totals $956,088.82 $42,854,852.46 ($41,898,763.64)(97.77%)
17
17.1710 Land 4,626,380.41 4,626,380.41 .00 .00
17 - Totals $4,626,380.41 $4,626,380.41 $0.00 0.00%
18
18.1860 Construction in Process 2,398,271.37 2,398,271.37 .00 .00
18 - Totals $2,398,271.37 $2,398,271.37 $0.00 0.00%
ASSETS TOTALS $46,506,487.78 $59,989,615.70 ($13,483,127.92)(22.48%)
LIABILITIES AND FUND EQUITY
LIABILITIES
21
21.2105 Accounts Payable 407.00 674,688.80 (674,281.80)(99.94)
21 - Totals $407.00 $674,688.80 ($674,281.80)(99.94%)
24
24.2433 2024 PFD Bond 49,035,000.00 49,035,000.00 .00 .00
24.2499 Unamortized Bond Premium LT 1,509,431.10 1,509,431.10 .00 .00
24 - Totals $50,544,431.10 $50,544,431.10 $0.00 0.00%
LIABILITIES TOTALS $50,544,838.10 $51,219,119.90 ($674,281.80)(1.32%)
FUND EQUITY
29
29.2910 Net Investment in Capital (664,927.00)(664,927.00).00 .00
29.2946 Fund Balance -Restricted Capital improvments 42,854,852.46 42,854,852.46 .00 .00
29.2990 Fund Balance -Unassigned/Unrestricted (33,419,429.66)(33,419,429.66).00 .00
29 - Totals $8,770,495.80 $8,770,495.80 $0.00 0.00%
Page 1 of 2Run by Veronica Perez on 10/13/2025 10:16:33 AM
Balance Sheet
Through 09/30/25
Detail Listing
Include Rollup Account/Rollup to Base
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Current YTD Prior Year
Account Account Description Balance Total Actual Net Change Change %
Fund Category External
Fund Type
Fund 931 - Pasco Public Facility District
FUND EQUITY TOTALS Prior to Current Year Changes $8,770,495.80 $8,770,495.80 $0.00 0.00%
Prior Year Fund Equity Adjustment .00 .00
Fund Revenues (4,466,541.84)(6,362,069.12)
Fund Expenses 17,275,387.96 1,760,856.49
FUND EQUITY TOTALS ($4,038,350.32)$13,371,708.43 ($17,410,058.75)(130.20%)
LIABILITIES AND FUND EQUITY TOTALS $46,506,487.78 $64,590,828.33 ($18,084,340.55)(28.00%)
Fund 931 - Pasco Public Facility District Totals $0.00 ($4,601,212.63)$4,601,212.63 100.00%
Fund Type Totals $0.00 ($4,601,212.63)$4,601,212.63 100.00%
Fund Category External Totals $0.00 ($4,601,212.63)$4,601,212.63 100.00%
Grand Totals $0.00 ($4,601,212.63)$4,601,212.63 100.00%
Page 2 of 2Run by Veronica Perez on 10/13/2025 10:16:33 AM
Balance Sheet
Through 09/30/25
Detail Listing
Include Rollup Account/Rollup to Base
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Adopted Budget Amended Current Month YTD YTD Budget - YTD % Used/
Account Account Description Budget Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd
Fund 931 - Pasco Public Facility District
REVENUE
Dept 13 - City Mgr
Prog 590 - PPFD Admin
31
31.1310 Local Sales Tax 4,800,000.00 .00 4,800,000.00 424,413.50 .00 3,009,145.09 1,790,854.91 63
31.1311 PFD Sales Tax 900,000.00 .00 900,000.00 77,282.60 .00 550,497.84 349,502.16 61
31 - Totals $5,700,000.00 $0.00 $5,700,000.00 $501,696.10 $0.00 $3,559,642.93 $2,140,357.07 62%
36
36.6110 Investment Interest & FMV changes 250,000.00 .00 250,000.00 25,656.41 .00 147,224.38 102,775.62 59
36.6112 Investment Interest Bonds .00 .00 .00 85,893.20 .00 759,641.90 (759,641.90)+++
36.6900 Refunds, Reimbursement, Rebates 1,000.00 .00 1,000.00 .00 .00 32.63 967.37 3
36 - Totals $251,000.00 $0.00 $251,000.00 $111,549.61 $0.00 $906,898.91 ($655,898.91)361%
Prog 590 - PPFD Admin Totals $5,951,000.00 $0.00 $5,951,000.00 $613,245.71 $0.00 $4,466,541.84 $1,484,458.16 75%
Dept 13 - City Mgr Totals $5,951,000.00 $0.00 $5,951,000.00 $613,245.71 $0.00 $4,466,541.84 $1,484,458.16 75%
Dept 98 - Budgeted Fund Balance
Prog 000 - None
30
30.9999 Budget Est Beg Fund Balance (Unassigned)37,719,327.00 (28,948,831.00)8,770,496.00 .00 .00 .00 8,770,496.00 0
30 - Totals $37,719,327.00 ($28,948,831.00)$8,770,496.00 $0.00 $0.00 $0.00 $8,770,496.00 0%
Prog 000 - None Totals $37,719,327.00 ($28,948,831.00)$8,770,496.00 $0.00 $0.00 $0.00 $8,770,496.00 0%
Dept 98 - Budgeted Fund Balance Totals $37,719,327.00 ($28,948,831.00)$8,770,496.00 $0.00 $0.00 $0.00 $8,770,496.00 0%
REVENUE TOTALS $43,670,327.00 ($28,948,831.00)$14,721,496.00 $613,245.71 $0.00 $4,466,541.84 $10,254,954.16 30%
EXPENSE
Dept 13 - City Mgr
Prog 590 - PPFD Admin
53
53.3210 Forms Stationary Bus Cards 500.00 .00 500.00 .00 .00 77.06 422.94 15
53.3329 Technology Software < 5,000 .00 .00 .00 .00 .00 6,360.85 (6,360.85)+++
53 - Totals $500.00 $0.00 $500.00 $0.00 $0.00 $6,437.91 ($5,937.91)1288%
54
54.4510 Dues Subscription Memberships 1,000.00 .00 1,000.00 .00 .00 .00 1,000.00 0
54.4512 Train Registration Tuition 1,000.00 .00 1,000.00 .00 .00 .00 1,000.00 0
54.4514 Lodging Meals Miles Airfare 1,500.00 .00 1,500.00 .00 .00 .00 1,500.00 0
54.4524 Advertising 1,500.00 .00 1,500.00 688.72 .00 1,668.88 (168.88)111
54.4530 Legal Combined Services 15,000.00 .00 15,000.00 407.00 .00 7,911.50 7,088.50 53
54.4540 Organizational Services 950,000.00 .00 950,000.00 95,280.76 .00 553,695.21 396,304.79 58
54.4541 Professional Services 150,000.00 .00 150,000.00 13,347.76 .00 140,619.64 9,380.36 94
54.4544 Miscellaneous Services 12,000.00 .00 12,000.00 20.02 .00 1,801.75 10,198.25 15
54.4574 Postage Courier Shipping 250.00 .00 250.00 .00 .00 .00 250.00 0
54.4588 Software Maintenance .00 .00 .00 .00 .00 1,020.00 (1,020.00)+++
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Budget Performance Report
Date Range 01/01/25 - 09/30/25
Include Rollup Account and Rollup to Base
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Adopted Budget Amended Current Month YTD YTD Budget - YTD % Used/
Account Account Description Budget Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd
Fund 931 - Pasco Public Facility District
EXPENSE
Dept 13 - City Mgr
Prog 590 - PPFD Admin
54
54.4635 Insurance Premiums 6,500.00 .00 6,500.00 .00 .00 3,548.79 2,951.21 55
54 - Totals $1,138,750.00 $0.00 $1,138,750.00 $109,744.26 $0.00 $710,265.77 $428,484.23 62%
Prog 590 - PPFD Admin Totals $1,139,250.00 $0.00 $1,139,250.00 $109,744.26 $0.00 $716,703.68 $422,546.32 63%
Dept 13 - City Mgr Totals $1,139,250.00 $0.00 $1,139,250.00 $109,744.26 $0.00 $716,703.68 $422,546.32 63%
Dept 90 - Finance
Prog 690 - Capital Culture & Recreation
56
56.6110 Land & Land Improvements .00 .00 .00 .00 .00 529,454.62 (529,454.62)+++
56.6549 Building & Structure 26,921,240.00 .00 26,921,240.00 2,747,803.91 .00 11,887,297.85 15,033,942.15 44
56.6562 Const Contract (Primary)7,050,000.00 .00 7,050,000.00 .00 .00 3,044,218.41 4,005,781.59 43
56.6576 Const Other Prof Services 907,000.00 .00 907,000.00 .00 .00 1,134.68 905,865.32 0
56.6578 Const Other Miscellaneous 2,590,400.00 .00 2,590,400.00 .00 .00 306.50 2,590,093.50 0
56.6584 Individual Assets > $5,000 640,000.00 .00 640,000.00 .00 .00 .00 640,000.00 0
56 - Totals $38,108,640.00 $0.00 $38,108,640.00 $2,747,803.91 $0.00 $15,462,412.06 $22,646,227.94 41%
Prog 690 - Capital Culture & Recreation Totals $38,108,640.00 $0.00 $38,108,640.00 $2,747,803.91 $0.00 $15,462,412.06 $22,646,227.94 41%
Prog 778 - Principal PPFD
57
57.7200 Revenue Bond Principal 780,000.00 .00 780,000.00 .00 .00 .00 780,000.00 0
57 - Totals $780,000.00 $0.00 $780,000.00 $0.00 $0.00 $0.00 $780,000.00 0%
Prog 778 - Principal PPFD Totals $780,000.00 $0.00 $780,000.00 $0.00 $0.00 $0.00 $780,000.00 0%
Prog 827 - Interest PPFD
58
58.8310 Interest External Bond (Current)2,217,460.00 .00 2,217,460.00 .00 .00 1,096,272.22 1,121,187.78 49
58 - Totals $2,217,460.00 $0.00 $2,217,460.00 $0.00 $0.00 $1,096,272.22 $1,121,187.78 49%
Prog 827 - Interest PPFD Totals $2,217,460.00 $0.00 $2,217,460.00 $0.00 $0.00 $1,096,272.22 $1,121,187.78 49%
Dept 90 - Finance Totals $41,106,100.00 $0.00 $41,106,100.00 $2,747,803.91 $0.00 $16,558,684.28 $24,547,415.72 40%
Dept 98 - Budgeted Fund Balance
Prog 000 - None
59
59.9999 Budget Est End Fund Balance (Unassigned)1,424,977.00 9,159,808.00 10,584,785.00 .00 .00 .00 10,584,785.00 0
59 - Totals $1,424,977.00 $9,159,808.00 $10,584,785.00 $0.00 $0.00 $0.00 $10,584,785.00 0%
Prog 000 - None Totals $1,424,977.00 $9,159,808.00 $10,584,785.00 $0.00 $0.00 $0.00 $10,584,785.00 0%
Dept 98 - Budgeted Fund Balance Totals $1,424,977.00 $9,159,808.00 $10,584,785.00 $0.00 $0.00 $0.00 $10,584,785.00 0%
EXPENSE TOTALS $43,670,327.00 $9,159,808.00 $52,830,135.00 $2,857,548.17 $0.00 $17,275,387.96 $35,554,747.04 33%
Fund 931 - Pasco Public Facility District Totals
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Budget Performance Report
Date Range 01/01/25 - 09/30/25
Include Rollup Account and Rollup to Base
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Adopted Budget Amended Current Month YTD YTD Budget - YTD % Used/
Account Account Description Budget Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd
REVENUE TOTALS 43,670,327.00 (28,948,831.00)14,721,496.00 613,245.71 .00 4,466,541.84 10,254,954.16 30%
EXPENSE TOTALS 43,670,327.00 9,159,808.00 52,830,135.00 2,857,548.17 .00 17,275,387.96 35,554,747.04 33%
Fund 931 - Pasco Public Facility District Totals $0.00 ($38,108,639.00)($38,108,639.00)($2,244,302.46)$0.00 ($12,808,846.12)($25,299,792.88)
Grand Totals
REVENUE TOTALS 43,670,327.00 (28,948,831.00)14,721,496.00 613,245.71 .00 4,466,541.84 10,254,954.16 30%
EXPENSE TOTALS 43,670,327.00 9,159,808.00 52,830,135.00 2,857,548.17 .00 17,275,387.96 35,554,747.04 33%
Grand Totals $0.00 ($38,108,639.00)($38,108,639.00)($2,244,302.46)$0.00 ($12,808,846.12)($25,299,792.88)
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Budget Performance Report
Date Range 01/01/25 - 09/30/25
Include Rollup Account and Rollup to Base
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Row Labels Sum of Accumulation Amount
Accommodation and Food Services 30,878.89$
Administrative and Support and Waste Management and Remediation Services 11,917.94$
Agriculture, Forestry, Fishing and Hunting 607.71$
Arts, Entertainment, and Recreation 2,379.76$
Construction 72,530.23$
Educational Services 414.46$
Finance and Insurance 2,309.05$
Health Care and Social Assistance 403.77$
Information 8,847.42$
Management of Companies and Enterprises 6.43$
Manufacturing 5,432.50$
Mining 2.43$
Other Services (except Public Administration)10,923.12$
Professional, Scientific, and Technical Services 6,687.08$
Public Administration 10,504.05$
Real Estate Rental and Leasing 12,388.92$
Retail Trade 204,686.48$
Transportation and Warehousing 9,152.36$
Utilities 193.76$
Wholesale Trade 37,719.50$
Grand Total 427,985.86$
Accumulation 427,985.86$
Pool 714.64$
Admin Fee (4,287.00)$
Distribution 424,413.50$
September 25 Pasco Public Facilities District
$30,878.89
$11,917.94
$607.71
$2,379.76
$72,530.23
$414.46
$2,309.05
$403.77
$8,847.42
$6.43
$5,432.50
$2.43
$10,923.12 $6,687.08
$10,504.05
$12,388.92
$204,686.48
$9,152.36 $193.76
$37,719.50
Total
Accommodation and Food
Services
Administrative and Support
and Waste Management
and Remediation Services
Agriculture, Forestry,
Fishing and Hunting
Arts, Entertainment, and
Recreation
Construction
Educational Services
Finance and Insurance
Health Care and Social
Assistance
Category NameSum of Accumulation Amount
Page 14 of 78
Month
2023 2024 2025 23/24 24/25
January 331,806.55$ 386,736.10$ 409,220.76$ 17%6%
February 323,050.56$ 384,374.65$ 371,718.97$ 19%-3%
March 422,196.90$ 466,694.52$ 449,246.62$ 11%-4%
April 371,959.21$ 437,300.89$ 421,518.05$ 18%-4%
May 391,185.74$ 485,666.73$ 470,226.25$ 24%-3%
June 463,237.71$ 470,410.84$ 462,800.94$ 2%-2%
July 379,891.11$ 456,168.37$ 424,413.50$ 20%-7%
August 387,676.51$ 474,985.82$ -$ 23%-
September 439,074.98$ 457,098.30$ -$ 4%-
October 419,962.52$ 464,699.71$ -$ 11%-
November 412,200.88$ 463,120.77$ -$ 12%-
December 443,906.96$ 434,440.65$ -$ -2%-
Totals 4,786,149.63$ 5,381,697.35$ 3,009,145.09$ 12%-
Comparison Increase/Decrease
Sales Tax Percentage Increase/Decrease by Month
Pa
g
e
1
5
o
f
7
8
Aquatic Center Budget Tracker 9/30/2025
Contract Amount 51,046,928.00$
Expenses 22,654,488.00$
Unposted Transactions -$
Remaining Balance 28,392,440.00$ 55.6%
50%
22%
0%
28%
Aquatic Center Budget
Contract Amount Expenses Unposted Transactions Remaining Balance
Pa
g
e
1
6
o
f
7
8
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Financial Statements Audit Report
Pasco Public Facilities District
For the period January 1, 2024 through December 31, 2024
Published September 22, 2025
Report No. 1038060
Page 17 of 78
Insurance Building, P.O. Box 40021 Olympia, Washington 98504-0021 (564) 999-0950 Pat.McCarthy@sao.wa.gov
Office of the Washington State Auditor
Pat McCarthy
September 22, 2025
Board of Directors
Pasco Public Facilities District
Pasco, Washington
Report on Financial Statements
Please find attached our report on the Pasco Public Facilities District’s financial statements.
We are issuing this report in order to provide information on the District’s financial activities and
condition.
Sincerely,
Pat McCarthy, State Auditor
Olympia, WA
Americans with Disabilities
In accordance with the Americans with Disabilities Act, we will make this document available in
alternative formats. For more information, please contact our Office at (564) 999-0950, TDD
Relay at (800) 833-6388, or email our webmaster at webmaster@sao.wa.gov.
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Office of the Washington State Auditor sao.wa.gov
TABLE OF CONTENTS
Schedule of Audit Findings and Responses .................................................................................... 4
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ..................................................................................................... 7
Independent Auditor's Report on the Financial Statements .......................................................... 10
Financial Section ........................................................................................................................... 13
About the State Auditor's Office ................................................................................................... 34
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SCHEDULE OF AUDIT FINDINGS AND RESPONSES
Pasco Public Facilities District
January 1, 2024 through December 31, 2024
2024-001 The District’s internal controls were inadequate to ensure financial
statements were accurate and complete.
Background
District management, state and federal agencies, and the public rely on the
information included in the financial statements and reports to make decisions.
Management is responsible for designing and following internal controls that
provide reasonable assurance its financial reporting is reliable and the financial
statements and notes to financial statements are accurate. The District prepares its
financial statements in accordance with generally accepted accounting principles.
Our audit identified deficiencies in internal controls over accounting and financial
reporting that affected the District’s ability to produce reliable financial statements.
Government Auditing Standards requires the State Auditor’s Office to
communicate material weaknesses as a finding.
Description of Condition
This is the first financial statement audit for the District. Additionally, the District
issued revenue bonds in 2024 for the first time, which required it to account for and
report the new debt issuance activity in the financial statements.
We found the District’s review process was insufficient to ensure the financial
statements submitted for audit were accurate and complete. Specifically, the
District’s review process failed to detect that it had submitted an incorrect version
of the financial statements as part of its annual report submission.
We found this deficiency in internal controls to be a material weakness.
Cause of Condition
Although the District had a process over financial statement preparation and
review, the District did not dedicate sufficient resources to ensure it submitted the
final version of the prepared financial statement report for audit.
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Effect of Condition
The District’s financial statements contained errors management did not detect.
During our audit of the financial statements, we noted the following errors:
• The District did not include bonds issued and the bond premium on the
Statement of Revenues, Expenditures and Changes in Fund Balance. This
caused an understatement of $50.5 million of Other Financing Sources
(Revenues) and the Ending Fund Balance.
• Cash and cash equivalents was overstated by $288,120.
The District subsequently corrected these errors.
In addition, we identified other smaller, immaterial, errors throughout the financial
statements, notes to the financial statements and supporting schedules.
Recommendation
We recommend the District dedicate sufficient time and resources to reviewing
financial statements and ensure the final financial statements submitted for audit
are accurate and complete.
District’s Response
The Pasco Public Facility District appreciates the work of the State Auditor’s
Office (SAO) and the opportunity to respond. This valuable insight supports our
ongoing efforts to strengthen financial reporting and internal controls. We have
outlined the circumstances contributing to each issue and the corrective measures
being implemented.
Bond Exclusion
The preparation of the Financial Statements presented unique challenges due to
increased complexity compared to prior years. All statements, notes, and schedules
were developed from the ground up without the benefit of specialized financial
reporting software, requiring manual preparation—a time-intensive process,
particularly during first-time implementation.
It is important to note that the bond issuance and related premiums were not
entirely omitted from the Financial Statements. They were included in other
sections but were inadvertently excluded from the Statement of Revenues,
Expenditures, and Changes in Fund Balance. This occurred as the result of a copy-
and-paste error during the transfer of data between software platforms. While the
statement was originally prepared accurately, the updated version was not
properly carried over to the final financial packet.
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Cash Overstatement
The overstatement resulted from the implementation of a new accounting software
module, which created duplicate entries on the back end when beginning balances
were brought in. The software provider is currently assisting with a system update
and testing to resolve this issue.
To ensure accuracy going forward, the City has adopted and will continue to use a
parallel manual bank reconciliation process. This process was in place during
FY25 and successfully identified the $288,153 variance as a reconciling item under
review by both staff and the software company. The continued use of this control
will provide assurance that the system correction is producing accurate reporting
for FY25 and beyond.
Auditor’s Remarks
We appreciate the District’s commitment to resolve this finding and thank the
District for its cooperation and assistance during the audit. We will review the
corrective action taken during our next regular audit.
Applicable Laws and Regulations
Government Auditing Standards, July 2018 Revision, paragraphs 6.40 and 6.41
establish reporting requirements related to significant deficiencies or material
weaknesses in internal control, instances of fraud, and noncompliance with
provisions of laws, regulations, contracts, or grant agreements.
The American Institute of Certified Public Accountants defines significant
deficiencies and material weaknesses in its Codification of Statements on Auditing
Standards, section 265, Communicating Internal Control Related Matters Identified
in an Audit, paragraph 7.
RCW 43.09.200 Local government accounting – Uniform system of accounting,
requires the State Auditor to prescribe the system of accounting and reporting for
all local governments.
The Budgeting, Accounting and Reporting System (BARS) Manual, 3.1.3, Internal
Control, requires each local government to establish and maintain an effective
system of internal controls that provides reasonable assurance that the government
will achieve its objectives.
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INDEPENDENT AUDITOR’S REPORT
Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Pasco Public Facilities District
January 1, 2024 through December 31, 2024
Board of Directors
Pasco Public Facilities District
Pasco, Washington
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities and each major fund of the Pasco Public Facilities District, as of and for
the year ended December 31, 2024, and the related notes to the financial statements, which
collectively comprise the District’s basic financial statements, and have issued our report thereon
dated September 16, 2025.
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
In planning and performing our audit of the financial statements, we considered the District’s
internal control over financial reporting (internal control) as a basis for designing audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the District’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
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Our consideration of internal control was for the limited purpose described above and was not
designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore, material weaknesses or significant deficiencies may exist
that were not identified.
However, we identified certain deficiencies in internal control, as described in the accompanying
Schedule of Audit Findings and Responses as Finding 2024-001, that we consider to be material
weaknesses.
REPORT ON COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the District’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required
to be reported under Government Auditing Standards.
DISTRICT’S RESPONSE TO FINDINGS
Government Auditing Standards requires the auditor to perform limited procedures on the
District’s response to the findings identified in our audit and described in the accompanying
Schedule of Audit Findings and Responses. The District’s response was not subjected to the
auditing procedures applied in the audit of the financial statements and, accordingly, we express
no opinion on the response.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District’s internal control or on compliance. This report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering the District’s internal control
and compliance. Accordingly, this communication is not suitable for any other purpose. However,
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this report is a matter of public record and its distribution is not limited. It also serves to
disseminate information to the public as a reporting tool to help citizens assess government
operations.
Pat McCarthy, State Auditor
Olympia, WA
September 16, 2025
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INDEPENDENT AUDITOR’S REPORT
Report on the Audit of the Financial Statements
Pasco Public Facilities District
January 1, 2024 through December 31, 2024
Board of Directors
Pasco Public Facilities District
Pasco, Washington
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinions
We have audited the accompanying financial statements of the governmental activities and each
major fund of the Pasco Public Facilities District, a component unit of the City of Pasco, as of and
for the year ended December 31, 2024, and the related notes to the financial statements, which
collectively comprise the District’s basic financial statements as listed in the financial section of
our report.
In our opinion, the accompanying financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities and each major
fund of the Pasco Public Facilities District, as of December 31, 2024, and the respective changes
in financial position thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are required to be independent of
the District and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America, and
for the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
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In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the District’s
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
Performing an audit in accordance with GAAS and Government Auditing Standards includes the
following responsibilities:
• Exercise professional judgment and maintain professional skepticism throughout the audit;
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements;
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the District’s internal control. Accordingly, no such
opinion is expressed;
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements;
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the District’s ability to continue as a going
concern for a reasonable period of time; and
• Communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis be presented to supplement the basic financial statements.
Such information is the responsibility of management and, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We do not express an opinion or provide any assurance
on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated
September 16, 2025 on our consideration of the District’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the District’s internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the District’s internal control over financial
reporting and compliance.
Pat McCarthy, State Auditor
Olympia, WA
September 16, 2025
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FINANCIAL SECTION
Pasco Public Facilities District
January 1, 2024 through December 31, 2024
REQUIRED SUPPLEMENTARY INFORMATION
Management’s Discussion and Analysis – 2024
BASIC FINANCIAL STATEMENTS
Statement of Net Position – 2024
Statement of Activities – 2024
Governmental Funds Balance Sheet – 2024
Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position –
2024
Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental
Funds – 2024
Statement of Revenues, expenditures and Changes in Fund Balance Budget to Actual –
General Fund – 2024
Reconciliation of Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balance to the Statement of Activities – 2024
Notes to Financial Statements – 2024
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Pasco Public Facilities District 2024 Annual Financial Report
Management’s Discussion and Analysis
This management discussion and analysis of the Pasco Public Facilities District’s (PPFD)financial
performance provides an overview of the financial activities for the year ended December 31,
2024. Please read it in conjunction with the accompanying basic financial statements and the notes
to the financial statements.
Financial Highlights
Beginning in 2023, sales tax revenue based on a voter approved two-tenths of a percent
was added to PPFD general revenues for the express purpose of construction and operation
of an Aquatic Center. In 2024, the PPFD received $5.4M in sales tax revenue, an increase
of $705K as compared to 2023.
x A sales tax bond of $49M was issued at a premium in 2024 to support Aquatic Center
construction. Capital assets composed of a land purchase and construction work in progress
were recorded as of 12/31/2024 in the total amount of $7.02M. Remaining unspent bond
proceeds were $42.8M. These assets are restricted and will be drawn upon to complete
construction.
x As of December 31, 2024, the PPFD’s outstanding debt increased by $50.5M, reflecting
the face value of the bond issuance and premium upon sale of $1.5M. Prior to this issuance,
the PPFD held no debt. Proceeds received are for the support of construction for a new
Aquatic Center in Pasco WA. Debt service for this bond is detailed in Note 8. The interest
rate is noted at 4.25%.
PPFD revenues are composed solely of general tax revenues. Activity related to general
revenues reported on the Statement of Activities resulted in an improvement of $705K in
2024 over 2023. Offsetting this revenue was current program expenses of $1.76M of
spending in the governmental category, an increase of $493K.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the PPFD’s basic financial
statements. Those financial statements comprise three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also
contains other required supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements. The government-wide financial statements are designed
to provide readers with a broad overview of the PPFD’s finances in a manner similar to a private-
sector business. The Statement of Net Position presents information on all the assets and liabilities
with the difference between the two reported as net position.Over time, increases or decreases in
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Pasco Public Facilities District 2024 Annual Financial Report
net position may serve as a useful indicator of whether the financial position of the PPFD is
improving or deteriorating.
The statement of activities presents information showing how the government’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g. uncollected taxes).
The government-wide financial statements include a single function (classified as culture and
recreation) which is currently supported by tax revenues (Governmental Activities).The PPFD
currently does not have any business-type activities. The governmental activity of the PPFD is to
provide support to the Kennewick Convention Center, daily operation expenses and on occasion
the PPFD conducts some project concept planning and evaluation work through consultant
contracts. Debt service issuance costs were recorded in 2024 in the amount of $497K.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The PPFD
like other governments uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
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 PPFD maintains just one governmental fund: the general fund. Information is presented in
the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures and changes in fund balances. The general fund is a major fund as defined by the
Governmental Accounting Standards Board (GASB).
The PPFD adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
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Pasco Public Facilities District 2024 Annual Financial Report
Notes to the Financial Statements. The notes provide additional information that is essential to
a full understanding of the data provided in the fund statements.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the PPFD, assets exceeded liabilities by $8.7M, a change in net position of
$4.6M, at year end 2024. For PPFD, the increased net position is due to the increase of sales tax
received. A ballot initiative approving a .02 percent sales tax increase was approved in 2022 to be
effective 1/1/23. Proceeds are to be used for the construction and operation of a new Aquatic
Center.
The following table is a comparison of current and prior year assets and liabilities.
Pasco Public Facility District Net Position
Total Primary Government
2024 2023 2024 2023
Current Assets
Cash and Taxes Receivable 9,821,958 4,436,462 9,821,958 4,436,462
Rest Cash-Bond Proceeds 42,854,852 - 42,854,852 -
Total Current Assets 52,676,811 4,436,462 52,676,811 4,436,462
Noncurrent Assets
Capital assets not being depreciated 7,312,804 - 7,312,804 -
Total Assets 59,989,615$ 4,436,462$ 59,989,615$ 4,436,462$
Current Liabilities 674,689 267,179 674,689 267,179
Long Term Liabilities 50,544,431 - 50,544,431 -
Total Liabilities 51,219,120$ 267,179$ 51,219,120$ 267,179$
Total net position 8,770,495$ 4,169,283$ 8,770,495$ 4,169,283$
Governmental Activities
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Pasco Public Facilities District 2024 Annual Financial Report
Statement of Changes in Net Position
The following condensed table of changes in net assets compares the revenues and expenses for
the current year to prior year.
In 2024, revenue was the result of sales tax. In prior years the largest expense to the fund was the
pass-through payment of sales tax to Kennewick Public Facilities District. In 2024, the cost of
debt issuance, $497K elevated expenses. Other expenses for supplies and services increased
$163K, or approximately 14%. This change was a result of increased payments to Kennewick
Public Facility District as a reflection of higher sales tax receipts, as well as slightly higher
spending related to travel, legal and interfund expenses supportive of the construction and ultimate
operations of a facility. Land was purchased and construction began on the new Aquatic Center
facility. This spending was capital in nature and is reflected on the Statement of Net Position.
Financial Analysis of the Government’s Funds.
The PPFD uses fund accounting to ensure and demonstrate compliance with finance related legal
requirements.
Governmental funds.The focus of the PPFD’s Governmental Funds is to provide information on
near-term inflows, outflows and balances of spendable resources. Such information is useful in
assessing the PPFD financing requirements. In particular, unrestricted fund balance may serve as
a useful measure of a government’s net resources available for spending at the end of the fiscal
year.
As of the end of the current fiscal year, the PPFD’s only governmental fund is its general fund.
The general fund is the chief operating fund of the PPFD and reported an ending fund balance of
$52.6M, which represents a increase $47.4M of in comparison with the prior year. Fund balance
consists of unassigned and restricted fund balance. 2024 was the first year for the district to utilize
the restricted fund balance due to the sale of a sales tax bond to be used for the construction of a
new Aquatic Center. Continued activity around feasibility study, legal review, other consultancy
Total Primary Government
2024 2023 2024 2023
Program revenues - 9,245 - 9,245
General revenues 6,362,069 5,657,236 6,362,069 5,657,236
Total revenues $6,362,069 $5,666,481 $6,362,069 $5,666,481
Program expenses $1,760,857 $1,267,485 $1,760,857 $1,267,485
Changes in net position $4,601,212 $4,398,996 $4,601,212 $4,398,996
Pasco Public Facility District Changes in Net Position
Governmental Activities
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Pasco Public Facilities District 2024 Annual Financial Report
work, the purchase of land and the beginning of construction resulted in an increase in expenses
for the 2024 year.
Overall, in 2024 revenues increased by $705K in sales tax and total expenditures increased by
approximately $7.7M. Of this increase, 7.28M was related to capital outlays. The increase in
revenue is all due to increase in sales tax. Generally, the revenues and expenditures are expected
to experience similar increases/decreases with most variances relating to one-time expenditures
for consulting, legal services or construction.
To convert governmental fund activity to government-wide results it is necessary to recognize the
receipt of bond proceeds as a liability in the Statement of Net Position in the amount of $50.5M.
Also necessary is the recognition of capital spending of $7.02M as capital assets and a matching
contra account entry to offset expenses in fund statements.
General Fund Budgetary Highlights
Sales tax revenue exceeded the budgeted amount and reflected a variance of 26.2% in 2024. This
increase is directly related to continued growth in sales tax.
Requests for Information
This financial report is designed to provide a general overview of the Pasco Public Facilities
District’s finances for all those with an interest in the government’s finances. Questions concerning
any of the information provided in this report or requests for additional financial information
should be addressed to the Finance Director, City of Pasco, P.O. Box 293, Pasco, WA 99301.
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Pasco Public Facilities District 2024 Annual Financial Report
Governmental Total Primary
Activities Government
ASSETS
Current assets:
Cash and Investments 8,761,358$ 8,761,358$
Taxes Receivable 1,060,601 1,060,601
Restricted Cash- Bond Proceeds 42,854,852 42,854,852
Total Current Assets 52,676,811 52,676,811
Noncurrent assets:
Capital assets not being depreciated:
Land 4,626,380 4,626,380
Construction work in progress 2,686,424 2,686,424
Total Noncurrent Assets 7,312,804 7,312,804
Total Assets 59,989,615 59,989,615
LIABILITIES
Current liabilities:
Accounts Payable 674,689 674,689
2024 PFD Bond 2,997,460 2,997,460
Total Current Liabilities 3,672,149 3,672,149
Non-Current liabilities:
2024 PFD Bond 46,037,540 46,037,540
Unamortized Bond Premium 1,509,431 1,509,431
Total Non-Current Liabilities 47,546,971 47,546,971
Total Liabilities 51,219,120 51,219,120
NET POSITION
Net investment in capital assets (664,927) (664,927)
Restricted - Capital Improvements 42,854,852 42,854,852
Unrestricted (33,419,430) (33,419,430)
Total Net Position 8,770,495$ 8,770,495$
The notes to the financial statements are an integral part of this statement.
PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF NET POSITION
As of December 31, 2024
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Program Revenues
Charges for Governmental Total Primary
Functional Programs Expenses Services Activities Government
Primary Government
Governmental Activities:1,760,857$ -$ (1,760,857)$ (1,760,857)$
Cultural & Community Activities 1,760,857$ -$ (1,760,857)$ (1,760,857)$
Total Governmental Activities 1,760,857 - (1,760,857) (1,760,857)
Total Primary Government 1,760,857$ -$
General Revenue:
Taxes 6,362,069 6,362,069
Investment Earnings - -
Total General Revenues 6,362,069 6,362,069
Change in Net Position 4,601,212 4,601,212
Net Position Beginning 4,169,283 4,169,283
Net Position Ending 8,770,495$ 8,770,495$
The notes to the financial statements are an integral part of this statement.
For the Year Ended December 31, 2024
PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF ACTIVITIES
Net Revenue (Expenses) and
Changes in Net Position
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ASSETS
Cash 8,761,358$
Sales Tax Receivable 1,060,601
Restricted Cash- Bond Proceeds 42,854,852
TOTAL ASSETS 52,676,811
LIABILITIES
Accounts Payable 674,689
TOTAL LIABILITIES 674,689
Fund Balance
Restricted - Capital Improvements 42,854,852
Unassigned 9,147,270
Total fund balance 52,002,122$
The notes to the financial statements are an integral part of this statement.
PASCO PUBLIC FACILITIES DISTRICT
BALANCE SHEET
As of December 31, 2024
52,002,122
General obligation bonds (50,544,431)
(50,544,431)
8,770,495
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:
Net position of governmental activities
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net
position are different because:
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:7,312,804
Pasco Public Faculties District
Reconciliation of Balance Sheet
To the Statement of Net Position
For the Year Ended December 31, 2024
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2024
REVENUES
PFD Sales Tax 980,372$
Local Sales Tax 5,381,697$
Total Revenues 6,362,069
EXPENDITURES
Current:
Cultural & Community Activities 1,760,857
Capital Outlay:
Cultural & Community Activities 7,312,805
Total Expenditures 9,073,662
Excess (deficiency) of revenues over expenditures (2,711,593)
OTHER FINANCING SOURCES (USES)
Issuance of long-term debt 49,035,000
Premium on bonds issued 1,509,431
Total other financing sources (uses) 50,544,431
Net Change in Fund Balances 47,832,839
Beginning Fund Balance, January 1 4,169,283
Ending Fund Balance 52,002,122$
The notes to the financial statements are an integral part of this statement.
PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE
For Year Ending December 31, 2024
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PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE
BUDGET TO ACTUAL - GENERAL FUND
Year to Date Ending December 31, 2024
Original Final
Budget Budget Actual Variance %Variance
REVENUES
Local Sales Tax 500,000$5,040,000$6,362,069$26.2%1,322,069$
Total Revenues 500,000$ 5,040,000$ 6,362,069$ 26.2%1,322,069$
EXPENDITURES
Current
Culture and Community Activities 522,850$ 5,021,700 1,263,354 -74.8%(3,758,346)
Capital Outlay
Land - 4,604,500 4,626,380 0.0%21,880
Building & Structure --590,017 0.0%590,017
Construction Contract (Primary)--2,040,656 0.0%2,040,656
Construction Other Professional Services --55,751 0.0%55,751
Debt Service
Debt Issue Costs --497,503 0.0%497,503
Total Expenditures 522,850$9,626,200$9,073,661$-5.7%(552,539)
Other Financing Sources
Issuance of Long Term Debt (Bond Revenue)49,035,000$ 0.0% 49,035,000$
Premium on Bonds issued 1,509,431$ 0.0% 1,509,431$
Total Revenues -$ -$ 50,544,431$ 0.0% 50,544,431$
Net Change in fund balance (22,850) (4,586,200) 47,832,839 -1143.0% 1,874,608
Fund Balance - Beginning - - 4,169,283 0.0% 4,169,283
Fund Balance - Ending (22,850)$ (4,586,200)$ 52,002,122$ -1233.9% 6,043,891$
The notes to the financial statements are an integral part of this statement.
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Pasco Public Facilities District 2024 Annual Financial Report
47,832,839
Proceeds from issuance of bonds (49,035,000)
Capitalization of bond premium on bond issuance (1,509,431)
(50,544,431)
-
Depreciation -
Capital outlays 7,312,804
7,312,804
4,601,212Change in net position of governmental activities
Net change in fund balances - total government funds
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 re ported 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:
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:
Pasco Public Facilities District
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances to the Statement of Activities
For the Year Ended December 31, 2024
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Pasco Public Facilities District 2024 Annual Financial Report
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the PPFD have been prepared in conformity with Generally Accepted
Accounting Principles (GAAP) as applied to government units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The following is a summary of the more significant
policies.
A. Reporting Entity
The PPFD was created by the Council of the City the Pasco by passage of Ordinance No. 3558
on July 15, 2002, to participate in acquisition, construction, operation, and/or financing of a
regional center (as defined in RCW 35.57) in the Tri-Cities area.
State law, as defined in the Revised Code of Washington (RCW) Chapter 35.57 (the City PFD
Act), authorizes the City Council, as the legislative authority of the City, to create a public
facilities district coextensive with the boundaries of the City for the purposes, among others,
of acquiring, constructing, operating, and financing one or more “Regional Centers” through
cooperative and joint ventures with one or more qualifying public facilities districts.
A Regional Center is defined in the City Public Facilities District (PFD)Act as “…convention,
conference, or special events center, or any combination of facilities, and related parking
facilities, serving a regional population constructed, improved or rehabilitated after July 25,
1999 at a cost of at least $10,000,000 including debt service.”
State law also states a public facilities district created before July 31, 2002 that commences
construction or improvement of a Regional Center before January 1, 2004 may impose, solely
for Regional Center Purposes, a 0.033% sales and use tax. The Sales Tax operates to shift a
share of the State’s sales and use tax revenues to the public facilities district at no additional
cost to taxpayers.
The Board of Directors is comprised of 5 members; two members appointed by the City
Council and 3 members appointed by the City Council based on recommendations from local
organizations. The Board then elects a President, a Vice President, and a Secretary/Treasurer.
The initial appointment of the Board called for one - one year term, one - two year term, one -
three year term and two - four year terms. Thereafter, appointments are for four year terms.
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B. 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. As there is just one fund, the general fund, there is no interfund activity in 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 support. The PPFD had no business-type
activities in the current or prior year.
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. The PPFD policy is to not 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 for a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
C. Measurement focus, basis of accounting, and financial statement presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. 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. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting.
The PPFD reports the general fund as a major governmental fund. The general fund is the
PPFD’s primary operating fund. It accounts for all governmental financial resources.
Amounts reported as program revenues include 1) charges to customers, 2) operating grants
and contributions, and 3) capital grants and contributions. General revenues include all taxes.
The PPFD does not have a flow of funds policy and therefore utilizes the default provided by
GASB 54 which assumes restricted assets are used before unrestricted assets.
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D. Assets, liabilities and equities
Deposits and investments
The government’s cash and cash equivalents are cash on hand and demand deposits.
Receivables and payables
Receivables consist of sales taxes receivable. Payables result from an inter-local agreement
with the KPFDthat all sales tax received will be passed through to the KPFD. PPFD operations
that consists of an inter-local agreement with the City of Pasco, and construction costs related
to the new Aquatic Center.
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 District 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 District’s highest level of decision-making
authority. The Board 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 Board may
also assign fund balance as it does when appropriating fund balance 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 District 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.
In the fund financial statements, governmental funds report restrictions of fund balance as
follows:
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Non spendable 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 Board. Commitments may be changed or lifted only by
the Board taking the same formal action that imposed the constraint originally.
Assigned fund balance –includes amounts intended to be used by the District 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 amounts that are available for any purpose.
1.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:
2. Long-term Debt
In the government-wide statements, in the fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental activities.
Unspent Bond Proceeds 42,854,852$
Debt Service 497,503$
Restricted Assets & Liabilities- Governmental Funds
For Year End 2024
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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
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Scope of Budgetary Accounting.Annual appropriated budgets are adopted for the PPFD on
themodified accrual basis of accounting. Annual appropriated budgets are adopted at the major
expenditure category level. Appropriations lapse at year-end. Budgetary accounts are
integrated in fund ledgers for all budgeted funds.
Amending the Budget.When the Board determines it is in the best interest of the PPFD to
increase or decrease the appropriation for a particular item, it may do so with a motion approved
by an affirmative vote of at least three Board members.
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
any authorized amendments.
Budget Compliance. The PPFD expenditures were under budget appropriation by
approximately $552,539. This is a direct result of sales tax revenue exceeding budget
expectations and the interlocal agreement that mandates all revenues are passed through to the
KPFD. Further, there was increased legal spending, the purchase of land and construction
expenses related to the Aquatic Center.
NOTE 3 –DETAILED NOTES ON ALL FUNDS
A. Deposits and investments
As of December 31, 2024, the government the year-end cash balance was $51,616,210.
Interest rate risk.Interest rate risk is the risk that changes in interest rates will adversely affect
the fair value of an investment.
Credit risk.Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations.
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.
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Custodial credit risk –deposits.This is the risk that in the event of a bank failure, the
governments’ deposits may not be returned.
Custodial credit risk –investments.For an investment, this is the risk that, in the event of the
failure of the counterparty, the government will be able to recover the value of its investments
or other collateral securities that are in the possession of an outside party.
B. Receivables and payables
Taxes receivable. The PPFD received November and December 2024 sales tax distributions
from the State of Washington in January and February 2025, respectively. The State receives
the sales tax from business in the month following the sales. It is then tabulated and distributed
to cities and counties the following month. As receivables are recognized when earned, the
sales taxes from underlying sales transactions are recognized as receivables in the period they
are earned. Per the inter-local agreement, 100% of the Regional Center (0.033%) sales tax
received is owed to KPFD. Sales taxes are received on the last day of the month, creating a
payable which is then paid to KPFD during the next month.
NOTE 4 - OTHER INFORMATION
A.Risk Management
The PPFD owns has no employees. Therefore, the PPFD does not carry any insurance other
than maintaining coverage for officials’errors and omissions. In 2024, there were no
substantive policy coverage changes, claims, nor settlements.
B. Related organization
City of Pasco. Pursuant to RCW 35.57 (the “City PFD Act”) the Pasco Public Facilities
District was formed and created by City of Pasco Ordinance No. 3558 on July 15, 2002,
coextensive with the boundaries of the City of Pasco, with the powers and authority set forth
in the City PFD Act.
All corporate powers of the PPFD are exercised by or under the authority of the PPFD Board;
and the business, property and affairs of the PPFD are managed under the direction of the
PPFD Board, except as may be otherwise provided in the Charter. The PPFD operates
independently from the City of Pasco.
The PPFD contracts with the City of Pasco to administer its accounting operations, manage its
cash and provide organizational administrative support. Sales tax proceeds are received by the
City for the benefit of the PPFD. The City Treasurer disburses funds on behalf of the PPFD.
Separate funds are maintained within the City to designate and hold separately amounts on
behalf of the PPFD.
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Pasco Public Facilities District 2024 Annual Financial Report
NOTE 5: CAPITAL ASSETS AND CWIP
Capital asset activity for the year ended December 31, 2024, was as follows:
Construction Commitments
The PPFD has active construction projects as of December 31, 2024. At year end, the districts
commitments with contractors are as follows:
NOTE 7: CHANGES IN LONG-TERM LIABILITIES
Changes in long-term liabilities - governmental.
The district liquidates most governmental debt service, liabilities from the General Fund.
The table below reflects the change in Long-Term Liabilities for Governmental activities for
year ended December 31, 2024.
Governmental Activities:Beginning Balance 01/01/24
Prior Period
Adjustments
Adjusted
Beginning
Balance
01/01/24 Current Period Increases
Current Period
Decreases
Ending Balance
12/31/24
Capital assets, not being depreciated
Land -$-$-$ 4,626,380$-$ 4,626,380$
Construction in process - - - 2,686,425 - 2,686,425
Intangible Assets - - - - -
Total capital assets, not being depreciated - - - 7,312,805 - 7,312,805
Governmental activities capital assets net -$-$-$ 7,312,805$-$ 7,312,805$
CATEGORY PROJECT NAME SPENT TO DATE REMAINING
COMMITMENT
PPFD General Aquatic Center 7,312,805 42,854,851
TOTAL 7,312,805 42,854,851
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Pasco Public Facilities District 2024 Annual Financial Report
NOTE 8: LONG TERM DEBT
The PPFD issues Sales Tax bonds to finance capital improvements such as the aquatic center
currently under construction. Governmental debt is considered obligations of the general
government and is repaid with general governmental resources such as City sales tax.
Governmental Debt
The PPFD’s outstanding Sales Tax bond is a 2024 bond issue that will fund the construction of a
new Aquatic Center in Pasco WA.
Sales Tax bond(s) outstanding as of December 31, 2024, are as follows:
GOVERNMENTAL ACTIVITIES Beginning Balance
01/01/2024 Additions Reductions
Ending Balance
12/31/24
Due Within One
Year
General Obligation Bonds/Sales Tax Bonds -$ 49,035,000$ -$ 49,035,000$ 2,997,460$
Premiums -1,509,431 -1,509,431 -
Total Bonds Payable -50,544,431 -50,544,431 2,997,460
Total Governmental Activity Long-Term Activity -$ 50,544,431$ -$ 50,544,431$ 2,997,460$
Purpose Issuance Amount Final Maturity Interest Rates
Outstanding as of
December 31, 2024
Due Within 1
Year
2024 PPFD Sales Tax Bond 50,544,431 11/1/2054 4.25%50,544,431$ 2,997,460$
50,544,431$ 2,997,460$
GOVERNMENTAL DEBT - BONDS
Total Governmental Debt
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Pasco Public Facilities District 2024 Annual Financial Report
Year Ending
December 31 Principal Interest Total Debt Service
2025 780,000 2,217,460 2,997,460
2026 795,000 2,203,375 2,998,375
2027 835,000 2,163,625 2,998,625
2028 875,000 2,121,875 2,996,875
2029 920,000 2,078,125 2,998,125
2030-2034 5,335,000 9,653,125 14,988,125
2035-2039 6,795,000 8,180,625 14,975,625
2040-2044 8,680,000 6,302,625 14,982,625
2045-2049 10,775,000 4,210,275 14,985,275
2050-2054 13,245,000 1,735,488 14,980,488
TOTAL 49,035,000$40,866,597$89,901,597$
GOVERNMENTAL DEBT
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Page 34
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Page 1
TO: Pasco Public Facilities District Board Members
DATE: October 17, 2025
SUBJECT: CHANGE ORDERS
The Pasco Public Facilities District chose “Design-Build” as a methodology for
construction of the new aquatics facility and in with this method there is a “Guaranteed
Maximum Price” that also includes a contractor and owner contingency for unanticipated
expenses or complications.
This round also includes three change orders that include >$50,000 and require board
approval as well as several within executive director approval. A copy of our Stakeholder
Matrix is included as reference.
Change Orders from Owner’s Contingency
PCO 12 - Additional infrastructure for the concessions per outside consultants
(10/1/2025b) $126,711.76 Executive Director Recommends Board Approval
PCO 14 - Pool Pumps VFD as required by L&I (10/1/2025b) $62,486.32
Code change. Executive Director Recommends Board Approval
PCO 016 – Betterment 33 – Party Room’s RSD (10/7/2025a) $9502.53
Conduit, data cabling, and rough-in wall boxes for three room scheduling devices of Party
Rooms. Executive Director Approved Due to Urgency. Board Information.
PCO 017 – Betterment 34 – Slide Camera and Monitor (10/7/2025b)
Furnish and install slide camera and monitor for operator at slide top platform. $39,539.35
None. Design and Construction Committee To Review, Executive Director Approval
Pending, & Board Information.
Change Orders Moved From Adjacent Budget
PCO 015 – Furniture, Fixtures, & Equipment (FF&E) Budget - Owner purchased
Concession Equipment (10/7/2025c) ($132,158.24)
FF&E Budget. Concession appliances, installation, and coordination. Executive Director
Recommends Board Approval
Matt Watkins
Executive Director
Cc: Wenaha Group
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Resolution – ILA with COP - 1
RESOLUTION NO. 2025-05
A RESOLUTION OF THE PASCO PUBLIC FACILITIES DISTRICT
BOARD, APPROVING AN AMENDED INTERLOCAL AGREEMENT WITH
THE CITY OF PASCO RELATED TO LEGAL COUNSEL SERVICES.
WHEREAS, RCW 39.34, Interlocal Cooperation Act, authorizes political subdivisions to
jointly exercise their powers, privileges, or authorities with other political subdivisions of this State
through the execution of an interlocal cooperative or interagency agreement; and
WHEREAS, the Pasco Public Facilities District (PPFD) was duly formed pursuant to
Chapter 35.57 of the Revised Code of Washington on July 15, 2002, by the adoption of City of
Pasco (City) Ordinance No. 3558, and granted all powers provided by law pursuant to RCW
35.57.010; and
WHEREAS, on February 19, 2013, the PPFD and the City entered into an Interlocal
Agreement (ILA) for Administrative Services; and
WHEREAS, on April 12, 2023, the PPFD and the City entered into a new ILA for
Administrative, Financial, and Legal Services due to the additional costs associated with the design
and construction of a voter approved Aquatic facility in Pasco; and
WHEREAS, due to notice of termination for City of Pasco Legal services by Kerr
Ferguson Law, PLLC, which expires December 31, 2025, the PPFD Board requested that the City
of Pasco revise the ILA, to include the option of either continuing to use the City Attorney or
contract for their own legal services. This would ensure PPFD continued legal representation
regardless of future City Attorney availability; and
WHEREAS, The City Council of the City of Pasco, Washington approved the amendment
to the ILA at their October 6, 2025, meeting.
WHEREAS, the Pasco Public Facilities District Board, has after due consideration,
determined that it is in the best interest of the PPFD to enter into the new Interlocal Agreement,
replacing the Interlocal Agreement from 2023, to update and formalize relationships with the City
of Pasco, Washington.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE PASCO PUBLIC FACILITIES DISTRICT as follows:
Section 1. The Pasco Public Facilities District Board of Directors does hereby approve
the new Interlocal Agreement with the City of Pasco for administrative, financial, and legal
services, attached hereto as Exhibit A.
Section 2. This new Interlocal Agreement replaces the Interlocal Agreement executed
in April 2023.
Page 53 of 78
Resolution – ILA with COP - 2
Section 3. That this Resolution shall take effect immediately.
PASSED by the Pasco Public Facilities District Board of Directors, of Pasco, Washington,
this 21st day of October, 2025.
PASCO PUBLIC FACILITIES DISTRICT
__________________________________
Mark Morrissette, Board President
ATTEST: APPROVED AS TO FORM:
_________________________________ _______________________________
Caroline Bowdish, Secretary/Treasurer Kerr Ferguson Law, PLLC
Pasco Public Facilities District Attorney for PPFD
Page 54 of 78
2025 ILA – City of Pasco/PPFD
Administrative, Financial and Legal Services - 1
INTERLOCAL AGREEMENT
between
THE CITY OF PASCO, WASHINGTON
and
THE PASCO PUBLIC FACILITIES DISTRICT
for
ADMINISTRATIVE, FINANCIAL, AND LEGAL SERVICES
THIS AGREEMENT, is made and entered into this ____ day of ______________, 2025,
between the City of Pasco, Washington, a Municipal Corporation, hereinafter referred to as the
"City"; and the Pasco Public Facilities District, a Municipal Corporation, hereinafter referred to as
"District" and agrees to the following terms:
WHEREAS, the District was created 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 one or more qualifying public
facilities district; and
WHEREAS, the District possesses, by law, all of the usual powers of a corporation for
public purposes, as well as all other powers that may now or hereafter be specifically conferred by
statute, including but not limited to the authority to hire employees, staff, and services, as well as
to enter into contracts and agreements; and
WHEREAS, the District desires to contract with the City of Pasco for the purpose of
securing those services necessary for fulfillment of the District's functions.
NOW THEREFORE, in consideration of the mutual covenant contained herein, the
parties agree as follows:
SECTION 1
PURPOSE
The purpose of this Interlocal Agreement is to create a cooperative basis upon which the
Board may utilize the personnel, services, and resources of the City to fulfill its statutory function
and to provide the basis of compensation to the City for such services.
SECTION II
SERVICES PROVIDED BY THE CITY
The City shall provide, at the request of the District, the following services:
(1) The City Clerk shall serve as the ex officio secretary of the Board for the purpose of
acceptance of claims, statutory notice of public meetings, repository of official records
of the District; keep and maintain minutes of District Board meetings (including
Page 55 of 78
2025 ILA – City of Pasco/PPFD
Administrative, Financial and Legal Services - 2
recorded records) and provide for the public inspection and copying of such records in
accordance with the policies and such of the City and the Revised Code of Washington.
a. City Clerk and Public Records – The Pasco City Clerk or their designee shall
provide support services to the District in the following:
i. Meeting Support, Agenda coordination, advertisement, general
correspondence with District members.
ii. Stewardship of public records, including records management,
maintenance, storage.
iii. Coordination of public records request in accordance with all
applicable OPMA regulations, RCW’s and PMCs.
(2) The City Attorney may serve as the attorney for the District or the District will have
the option to contract for their own legal services. This would ensure that the District
continued legal representation regardless of future City Attorney availability.
(3) The City Manager, or their Designee, shall serve as the primary liaison between the
City and the District.
a. Senior Staff Support – The Pasco City Manager, and their designee shall provide
support services to the District in the following:
i. General coordination between District Board Members and District
staff with the Pasco City Council and City staff
ii. Staff liaison support to the District Executive Director
iii. Staff support for all City-led efforts outlined herein.
iv. Coordination of real estate transactions
v. Coordination of applicable Interlocal Agreements
vi. Development of policy
(4) The Finance Director, or their Designee, shall serve as the financial officer for the
district. Duties include preparing quarterly and annual financial reports, including
claims, revenue/expense reports, perform all accounts payable and receivable.
a. Upon the direction of the District, the City shall:
i. Assist in coordinating Bond application and process.
ii. Establishing operations and revenue funding for the facility.
(5) Other City officials, employees, or agents providing specific or specialized services as
may be necessary.
(6) The City shall provide meeting space for the conduct of all District meetings.
Page 56 of 78
2025 ILA – City of Pasco/PPFD
Administrative, Financial and Legal Services - 3
SECTION III
PAYMENT FOR SERVICES
The City shall charge to the District and the District shall pay to the City the base amount
of $9,500 per month to supply such services specified in Exhibit A. Any additional services
provided will be charged in accordance to Exhibit B and will be billed separately, monthly.
City Attorney services rendered for the District shall be charged in addition to the above
monthly charge and billed separately.
SECTION IV
INTERLOCAL COOPERATIVE ACT PROVISION
The District shall be solely responsible for all costs, materials, supplies and services
necessary for its performance under the terms of this Agreement. All property and materials
secured by the District in the performance of this Agreement shall remain the sole property of the
District. All funding incident to the fulfillment of this Interlocal Agreement, shall be borne by the
party necessary for the fulfillment of their responsibilities under the terms of this Agreement. No
special budgets or funds are anticipated, nor shall be created incident to this Interlocal Agreement.
It is not the intention that a separate legal entity be established to conduct the cooperative
undertakings, nor is the acquisition, holding, or disposition of any real or personal property
anticipated under the specific terms of this Agreement. The District shall adopt and follow City
policies and procedures when deemed efficient and in compliance with applicable regulations. The
City Manager of the City of Pasco, Washington, shall be designated as the Administrator of this
Interlocal Cooperative Agreement.
SECTION V
TERM OF AGREEMENT
The initial term of this Agreement shall commence on the 1st day of October 2025, and
terminate on the 30th day of September 2026, or when the Certificate of Occupancy is received
for the facility, or an updated ILA replaces current ILA, whichever is sooner. Once the facility is
operational, it is likely that the scope of services needed will significantly change and/or increase.
Upon completion of construction, the District and the City will assess the format of future
collaboration including the scope of services or management of needs in-house by the District.
SECTION VI
ENTIRE AGREEMENT
This Agreement contains all the terms and conditions agreed upon by the parties. All items
incorporated by reference are attached. No other understandings, verbal or otherwise, in regard to
the subject matter of this Agreement, shall be deemed to exist. Any modifications to this
Agreement shall be in writing and signed by both parties to be effective.
Page 57 of 78
2025 ILA – City of Pasco/PPFD
Administrative, Financial and Legal Services - 4
SECTION VII
APPLICABLE LAW
This Agreement is governed, construed and enforced in accordance with the substantive
laws of the State of Washington. Should any dispute arise concerning the enforcement, breach, or
interpretation of this Agreement, venue shall be placed in Franklin County, Washington, and the
prevailing party shall be entitled to its reasonable attorney fees and costs as additional judgment.
SECTION VIII
AUTHORITY FOR EXECUTION
Each of the parties warrants and represents that its representatives, whose signatures are
below, possess all required authority to sign this Agreement and such powers have not, as of the
date of this Agreement, been revoked or revised.
IN WITNESS WHEREOF, the parties have executed this Agreement by the duly
authorized officers on the day and year first written above.
PASCO PUBLIC FACILITIES DISTRICT CITY OF PASCO
By: _______________________________ By: ______________________________
Mark Morissette, Chair Harold L. Stewart II, City Manager
Attested to by:
____________________________
Debby Barham, CMC, City Clerk
Page 58 of 78
Effective April 17, 2023
Page 59 of 78
Page 60 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 1 of 10
Construction Manager: Wenaha Group
Design-Builder: Bouten/NAC
UPDATE SUMMARY
The work in the natatorium is proceeding with the steel for the Ninja course in completed
and the pool excavation has begun. The outdoor pool concrete floors have been poured and
the walls are being formed and rebar is being tied. The plumbing, sewer and electrical
rough in in the building continues with the preparation for the concrete slabs in the main
building and concessions building is ongoing.
SCHEDULE
Key Milestones Start Completion % Complete Comments
Start Structural Steel 6/11/2025 9/30/2025 100%
Indoor Pool 9/15/2025 3/17/2026 7%
Exterior pool 6/25/2025 1/9/2025 25%
Roofing 7/23/2025 10/20/2025 100%
Area B&C Roof 10/1/2025 2/2/2025 0%
Area B&C Concrete 10/8/2025 10/28/2025 0%
CURRENT ACTIVITIES
Exterior pool forming and wall concrete pours.
On site utilities work continues.
Indoor slab preparation.
Plumbing rough in.
Indoor electrical installation.
ACTIVITIES SCHEDULED FOR NEXT MONTH
Pour remaining exterior pool.
Indoor pool excavation.
Area B&C roof installation.
Area B&C concrete flooring pour.
Site power to be completed.
Page 61 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 2 of 10
HIGHLIGHTS
Natatorium pool excavation started.
Exterior pool wall area formed, and rebar installed.
Interior underground utilities have been placed.
Rebar and vapor barrier are being placed for concrete floor installation.
Roof on the natatorium completed.
SCHEDULE COMMENTARY
The ongoing strike has been resolved with no major impact on the schedule. There
are adjustments to various tasks to make work the most efficient but there is no
change in major milestones.
CHALLENGES AND SOLUTIONS
With cooler weather approaching, Bouten is focused on outdoor concrete pours and
getting the buildings closed in. So far all activities are tracking with the budget.
Budget Status
Established GMP Changes to
Date Cost to Date
% Complete
$40,443,322 $295,532 $17,371,180 47%
OWNER CONTINGENCY STATUS
Budgeted
Contingency
Approved
Contingency
Usage
Items
Recommended
for Approval
Estimated
Total
Contingency
Exposure
Percentage
of
Contingency
Exposure
$3,590,400 $1,633,844 $0 $2,383,000 3.1%
*Owner Contingency is held in the budget outside of the construction contract and used at the
discretion of the PPFD
Page 62 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 3 of 10
COST OF WORK CONTINGENCY STATUS
Contracted
Contingency
Authorized
Contingency
Usage
Pending
Contingency
Usage
Remaining
Contingency
Percentage
of
Contingency
Used
$1,231,813 $503,952 $211,808 $727,861 59%
*Cost of Work Contingency is held inside the construction contract and available to the contractor.
Expenditures out of this contingency do NOT increase the contract amount with PPFD.
PROJECT PHOTO GALLERY
Exterior Deep Pool.
Page 63 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 4 of 10
Exterior Deep Pool.
Overhead steel.
Page 64 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 5 of 10
Overhead Steel.
Natatorium Building.
Page 65 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 6 of 10
Concessions Building.
Exterior Pool Concrete.
Page 66 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 7 of 10
Exterior Pool rebar.
Exterior Pool Concrete.
Page 67 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 8 of 10
Exterior Pool Concrete.
Indoor Utilities.
Page 68 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 9 of 10
Steel decking in main
building.
Surge tank top preparation
Page 69 of 78
Pasco Aquatics Facility
Monthly Project Update
September 2025
Page 10 of 10
Indoor Slab Preparation
Page 70 of 78
A B C D E = B - D
Sub-Area Description Original Budget Revised Budget Cost To Date Forecast Total
Revised Budget
vs. Forecast
Bond & Legal
Bond Counsel 70,000$ -$ -$ -$
Bond Sales 310,000$ -$ -$ -$
Municipal Advisor 70,000$
Insurance - Builder's Risk - In PDB -$ -$ -$
6576.1 Outside Counsel - PDB 20,000$ 20,000$ 26,355$ 20,000$ -$
6576.2 Other Legal Costs 45,000$ 45,000$ 30,460$ 45,000$ -$
Subtotal 515,000$ 65,000$ 56,815$ 65,000$ -$
Administration & Approvals
6576.3 Miscellaneous -$ -$ -$
6576.4 Project Staff Costs - PPFD Staff 312,000$ 312,000$ -$ 237,000$ 75,000$
6576.5 City of Pasco Staff - ILA 450,000$ 450,000$ -$ 450,000$ -$
Archaeological cosultant - In PDB -$ -$ -$
Testing & Inspection / Special Inspections - In PDB -$ -$ -$
Plan Check, Building Permits - In PDB -$ -$ -$
Environmental/SEPA - In PDB -$ -$ -$
6576.6 Other AHJ Fees / System Development Charges -$ -$ -$
6562.1 Electrical / Utility Fees 100,000$ 100,000$ 174,303$ 175,000$ (75,000)$
6576.7 State Commerce Department Review 30,000$ 50,000$ 30,000$ 50,000$ -$
6576.8 Shrub Steppe Mitigation - In PDB -$ -$ -$
6576.9 Other Admin Costs 30,000$ 30,000$ 10,000$ 30,000$ -$
Subtotal 922,000$ 942,000$ 214,303$ 942,000$ -$
Off-Site Related Costs
Temporary Offices - In PDB -$ -$ -$
Offsite road and utility improvements 2,000,000$ -$ -$ -$ -$
6540.1 Property Acquisition 3,600,000$ 5,139,528$ 5,137,765$ 5,139,528$ -$
Other Off-site Costs -$ -$ -$
Subtotal 5,600,000$ 5,139,528$ 5,137,765$ 5,139,528$ -$
Professional Fees
6562.2 Project Management 850,000$ 850,000$ 551,659$ 850,000$ -$
Architectural & Engineering - In PDB -$ -$ -$
Survey - In PDB -$ -$ -$
Geotechnical Engineer - In PDB 30,000$ 10,000$ -$ 10,000$ -$
Hazardous Materials Consultants -$ -$ -$
Building Envelope Consultant - In PDB -$ -$ -$
Commissioning - In PDB -$ -$ -$
PDB Validation Costs - In PDB -$ -$ -$
Independent Estimating 50,000$ 50,000$ -$ 50,000$ -$
Subtotal 930,000$ 910,000$ 551,659$ 910,000$ -$
Building Construction - PDB Contract
6549.1 Design-Builder 30,250,000$ 32,720,000$ 16,695,036$ 32,720,000$ -$
6562.3 Archeological Consultant 50,000$ 50,000$ -$ 50,000$ -$
6562.4 Testing and Special Inspections 150,000$ 150,000$ -$ 150,000$ -$
6562.5 Plan Check, Building Permits 300,000$ 300,000$ -$ 300,000$ -$
6562.6 Environmental/SEPA 10,000$ 10,000$ -$ 10,000$ -$
Additional Funds for Option 2 3,430,000$ -$ 3,430,000$ -$
800,000$ -$ 800,000$ -$
Added Betterments 2,300,000$ 2,300,000$
Sale Tax (included above) -$ -$ -$
Subtotal 30,760,000$ 39,760,000$ 16,695,036$ 39,760,000$ -$
Furnishings & Equipment
6584.1 FF&E 600,000$ 600,000$ -$ 600,000$ -$
6584.2 Network Equipment -$ -$ -$
6584.3 Telecommunications 20,000$ 20,000$ -$ 20,000$ -$
6584.4 Moving Expenses -$ -$ -$
6584.5 FF&E Consultant 20,000$ 20,000$ -$ 20,000$ -$
6585.6 Other FF&E Costs -$ -$ -$ -$ -$
Subtotal 640,000$ 640,000$ -$ 640,000$ -$
Contingency
6578.1 Owner's Contingency 2,580,000$ 3,590,400$ 2,330,000$ 3,590,400$ -$
Subtotal 2,580,000$ 3,590,400$ 3,590,400$ -$
Under / (Over)
TOTAL 41,947,000$ 51,046,928$ 22,655,577$ 51,046,928$ -$
Income & Project Under/Over
51,046,928$
Bond Proceeds 50,046,928$ 51,046,928$
Interest Income -$ -$
PPFD Cash Reserves 1,000,000$
-$
Total Income 51,046,928$ 22,655,577$ Total Expenses to Date
Total Project cost
Total Income
Under / (Over)
PPFD - Aquatics Facility
MASTER BUDGET - BIG SHEET
Page 1Page 71 of 78
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Page 72 of 78
Building Excellence
Since 1944
Bouten Construction Company • 1060 Jadwin Ave, Suite 300 • Richland, WA 99352
Tel: (509) 943-7677 • Fax: (509) 943-7877 • WA Lic. BO-UT-EC-C371NO
JOB MEMORANDUM
TO: Project Team DATE: September 30, 2025
ATTENTION: Heath Gardner and Jake Hartwig PROJECT: Pasco Aquatics Facility
FROM: Jess D., Steve H, & Keegan S. Pasco, WA
SUBJECT: Schedule Update September 2025 BOUTEN PROJECT NO. : K-970
Attached please find the most recent schedule update for September 2025, covering the period up to September 29,
2025. Per our previous schedule updates Bouten/NAC continues to maintain a projected substantial completion date
of May 8, 2026.
As publicized, the operating engineers’ labor dispute ended on September 15, 2025. Despite the Association of General
Contractors (AGC) and International Union of Operating Engineers (IUOE) still negotiating final terms, a tentative
agreement has been executed, allowing the operators to return to jobsites. As of today, September 30, 2025, Bouten is
forecasting a zero-day delay with maintaining the projected substantial completion date.
This schedule incorporates ASI-01 through ASI-06, and we are currently vetting out any schedule changes for
ASI-07 but do not anticipate any changes to the critical path of the schedule.
Other updates that have been made to this schedule include: 1) Pool activities have been broken down into more detail,
2) Most recent pull plan activities have been incorporated, and 3) Area B and C rooms have been identified for slab
pours.
As an update to procurement activities: pool play structure colors, precast architectural fascia, interior tile, and exterior
site furnishing submittals have been approved and released. Other packages are in the submittal generation and review
process. Some examples include metal wall panels and sound absorbing wall unit shop drawings.
Critical Milestones are as Follows:
• Indoor pool excavation starts: ........................................................... 09/29/25
• Roofing complete: ............................................................................. 11/26/25
• Core/Shell phase complete: ............................................................... 12/30/25
• Interior finishes complete: ................................................................. 03/17/26
• Outdoor pool complete: ..................................................................... 03/06/25
• Indoor pool complete: ....................................................................... 04/17/26
• Substantial completion: ..................................................................... 05/08/26
Current schedule concerns: Natatorium pool piping/concrete, precast fascia piece, and upcoming winter weather
8 days of the weather bank are still intact. No other schedule contingencies are shown.
If you have any questions or comments regarding this schedule update, please let me know.
Page 73 of 78
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Page 76 of 78
Page 1
TO: Pasco Public Facilities District Board Members
DATE: October 17, 2025
SUBJECT: CONTINGENCIES
Board Members,
The Pasco Public Facilities District chose “Design-Build” as a methodology for
construction of the new aquatics facility and in with this method there is a “Guaranteed
Maximum Price” that also includes a contractor and owner contingency for unanticipated
expenses or complications.
Contingency continues to be well-managed by our Owner’s Representatives, Heath
Gardener and Jake Hartwig of Wenaha Group, review of the Design & Construction
Committee, and requesting approval from myself as Executive Director following the
principles adopted in the Stakeholder Register.
Contingencies
Reminder: Within a Progressive Design-Build contract there is no increase to the contract
price for contingency items.
CUA 12 – Utility Easement Overburden (9/10/2025)
As a result of the utility work at Harris Road. Will be used to compensate for a condition
that was diƯerent between the actual site and what was represented on the drawings. $17K
CUA 22 – Mineral Wool at Precast Panel Joints (9/10/2025)
Will be used to cover the cost of material and labor for a trade buyout diƯerential. $5K
CUA 23 – West SoƯit Framing (9/10/2025)
Will be used for additional light framing and labor at the soƯit for steel joists top chords
extending further that intended. $4K
CUA 24 – Deadman Concrete Cutting (9/10/2025)
To be used to cover a trade diƯerential for cutting the deadman concrete used for setting
and securing the concrete panels ahead of removal. $12K
CUA 26 – Casework and Wall Covering (10/1/2025a)
Revision requested per food service changes. $4K
CUA 27 – Indoor pool footings deepening (10/1/2025a)
To avoid issues when the pool is excavated. $20K
CUA 28 - CDF Backfill over pool piping (10/1/2025a)
$32K
Page 77 of 78
Page 2
CUA 29 – Pump pit embeds furnished and installed for pump pit beams (10/1/2025a)
$4K
CUA 31 - Tnemec Paint at pool equipment room and electrical room (10/1/202a5)
$41K
CUA 32 - Additional bent plate to catch metal decking (10/1/2025a)
$10K
Matt Watkins
Executive Director
Cc: Wenaha Group
Page 78 of 78