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HomeMy WebLinkAbout2006 ACFR COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF PASCO, WASHINGTON FOR THE FISCAL YEAR ENDED DECEMBER 31 , 2006 CITY OF L I Prepared by the Administrative and Community Services Department Stanley R. Strebel, Director James W. Chase, Finance Manager CITY OF PASCO TABLE OF CONTENTS Year Ended December 31, 2006 INTRODUCTORY SECTION Letterof Transmittal ............................................................................................................. 1 Directoryof City Officials ............................................................................................................. 10 Directoryof Management Team ................................................................................................. 11 OrganizationalChart ............................................................................................................. 12 FINANCIAL SECTION Independent Auditor's Report on Financial Statements .............................................. 13 Management's Discussion and Analysis .................................................................................... 19 Basic Financial Statements Government Wide Financial Statements Statement of Net Assets - Governmental and Business-Type Activities .......... 34 Statement of Activities - Governmental and Business-Type Activities .......... 36 Fund Financial Statements Balance Sheet and Reconciliation of the Balance Sheet to the Statement of Net Assets - Governmental Funds ........................................................... 39 Statement of Revenues, Expenses and Changes in Fund Balances - Governmental Funds .................................................................................... 41 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances to the Statement of Activities - Governmental Funds ....... 43 Statement of Revenues, Expenses and Changes in Fund Balances - Budget and Actual Comparison - General Fund ............................................................ 45 Statement of Revenues, Expenses and Changes in Fund Balances - Budget and Actual Comparison - Arterial Street Fund......................................................... 46 Statement of Net Assets - Proprietary Funds ............................................... 47 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds .......................................................................................................................... 49 Statement of Revenues, Expenses and Changes in Net Assets in Detail - ProprietaryFunds ................................................................................................. 50 Statement of Cash Flows - Proprietary Funds ................................................ 51 Statement of Net Assets - Fiduciary Funds ............................................................ 53 Statement of Changes in Fiduciary Net Assets ................................................ 54 Notes to Financial Statements ................................................................................................. 55 Required Supplemental Information Combining and Individual Fund Statements and Schedules Combining Balance Sheet - Nonmajor Governmental Funds .................................... 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ............................................................ 103 Statement of Revenues, Expenses and Changes in Fund Balances - Budget and Actual Comparison - Nonmajor Special Revenue Governmental Funds ......... 110 Combining Statement of Net Assets - Internal Service Funds .................................. 131 i CITY OF PASCO TABLE OF CONTENTS Year Ended December 31, 2006 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets - Internal Service Funds ..................................................................... 133 Combining Statement of Cash Flows - Internal Service Funds ...................... 135 Schedule of Operations - Budget to Actual - Internal Service Funds ................... 137 Schedule of Operations - Budget to Actual - Water/Sewer Fund ..................... 143 Additional Information Schedule of Real and Personal Property Taxes ....................................................................... 145 Schedule of Long-Term Debt - L.I.D. Assessments ........................................................... 146 Schedule of Long-Term Debt - General Obligation and Revenue ................................. 148 Schedule of Computation of Legal Debt Margin ........................................................... 150 Schedule of Operation of Investments - All Funds ........................................................... 151 Schedule of Cash and Investments .................................................................................... 152 Schedule of Short Term Interest Bearing Debt ........................................................................ 152 Schedule of Contributions for Employee Benefits ............................................................. 152 Schedule of Expenditures of Federal Awards Et State and Local Financial Assistance ......................................................................................................................... 153 Notes to Schedule of Expenditures of Federal Awards Et State and Local Financial Assistance .................................................................................... 155 Schedule of Labor Relations Consultants ........................................................................ 156 STATISTICAL SECTION Statistical Information Table 1 General Government Revenues by Source and General Governmental Expenditures by Functions ............................................... 158 Table 2 Property Tax Levies and Collections ................................................ 160 Table 3 Assessed Actual Values of Taxable Property ............................................... 162 Table 4 Property Tax Rates - Computation of Direct and Overlapping Government ............................................................................................................. 164 Table 5 Special Assessment Collections ....................................................................... 166 Table 6 Ratio of Net General Bonded Debt to Assessed Value and Bonded Debt Per Capita ..................................................................................... 167 Table 7 Computation of Legal Debt Margin ................................................................ 168 Table 8 Ratio of Annual Debt Service for General Bonded Debt to Total General Expenditures ........................................................................ 169 Table 9 Revenue Bond Coverage - Water/Sewer .............................................. 170 Table 10 Demographic Statistics ..................................................................................... 171 Table 11 New Construction, Bank Deposits and Property Value ................................ 172 ii May 30, 2007 Honorable Mayor and Members of the City Council City of Pasco, Washington We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the City of Pasco for the year ended December 31 , 2006. The report was prepared by the Administrative and Community Services Department, which assumes full responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. This CAFR has been prepared to comply with the current standards for governmental accounting set forth by the Governmental Accounting Standards Board (GASB) and its predecessor, the National Council on Governmental Accounting (NCGA), the recognized authorities on generally accepted accounting principles applicable to governmental accounting. THE REPORT FORMAT The CAFR is presented in three sections: introduction, financial, and statistical. 1 . Introductory Section - This section introduces the reader to the report, and includes the transmittal letter, the City Organization Chart and a list of City officials. I 2. Financial Section - This section includes the Management Discussion and Analysis, Government-wide Financial Statements, Fund Financial Statements, Notes to the Financial Statements and Other Required Supplemental Information. 3. Statistical Section - This section presents some non-accounting data, with comparisons covering more than two fiscal years, and is designed to reflect social and economic data, financial trends and fiscal capacity of the City. Although this section contains substantial financial information, these tables may differ from the financial statements. This report includes all funds and agencies that are controlled by, or dependent on, the city's administrative and legislative authority. THE REPORTING ENTITY AND ITS SERVICES The City of Pasco is located in south central Washington (Franklin County) in the Mid-Columbia region of the Pacific Northwest. The City encompasses approximately 33.6 square miles. Pasco serves as the Franklin County seat and is the largest city in the County. Pasco and the neighboring cities of Richland and Kennewick, which are located in Benton County, make up the Tri-Cities Metropolitan Area, the fourth largest urban area in Washington State. The 2000 census population of Pasco was 32,066, while the Tri-Cities Metropolitan Area population was approximately 186,600. The 2006 Tri-Cities Metropolitan Area population was approximately 221 ,935 and Pasco's estimated population was 47,610. This represents a 48.48% growth rate in Pasco's population since the 2000 census. Initially established in 1884, the City was incorporated in 1891 , and has operated under the State laws applicable to a code city with a Council/Manager form of government since May 5, 1964. The City Manager is appointed by the City Council and is responsible to the City Council for the proper administration of all City operations. Council members are elected for four year overlapping terms through citywide elections. The City Council is comprised of seven members, one of which is selected by the members to serve as Mayor for a two-year term. Council members are part-time elected 2 officials who exercise legislative authority and determine matters of policy for the City. The City is a general-purpose government and provides the full range of municipal services authorized by State law. These services include police and fire protection, ambulance service, parks and recreation activities, street maintenance and construction, planning and zoning and general administrative services. The City owns and operates a water/sewer system and a cemetery. The City also owns a championship golf course and a baseball stadium that are leased to independent operators. SUMMARY OF PAST ECONOMIC DEVELOPMENT The City's economy is directly based on agriculture and related food processing and transportation. Farmland comprises the majority of the County's land area. The County has an estimated total farm acreage of 492,000, comprised of 242,000 irrigated acres and 250,000 dry land acres. Portions of the County lie within one of the world's largest irrigation districts, the U.S. Bureau of Reclamation's Columbia Basin Irrigation Project. In the early 1940's Congress authorized a plan to provide for irrigation of over 1 million acres in the Columbia Basin region of Washington State. Construction of the Irrigation Project began in 1946. The Grand Coulee Dam is the only source of both water and hydroelectric power for the Project. With the growth in farm production due to the Irrigation Project, food processing has become a major factor in the area's economy. The Pasco Processing Center (the "Center"), a 240-acre industrial park designed for the food processing industry, was constructed in 1995. The Center provides food processors the unique advantage of handling wastewater disposal via the City's industrial wastewater system, which has additional capacity for growth. The Center was developed jointly by the City, Port of Pasco and Franklin County Public Utility District. This system pumps the wastewater into huge storage ponds, which is sprayed onto crops for disposal. These storage ponds allow processors to operate year round. Since completion, several large food processors have built plants that utilize this facility. J.R. Simplot Food Group opened a $32 million 3 frozen vegetable processing plant at the Center in 1995 employing 250 full time employees with 500 more during peak seasons. Americold constructed an $8 million freezing facility that employs 100 full time workers. Twin City Foods completed construction on its $20 million frozen corn processing plant at the Center in 1998 and employs approximately 100 full time workers with 200 more during peak seasons. Reser's Fine Foods completed construction of a $15 million potato processing plant in 1998 that employs between 75 and 100 full time workers. The other major food processor in the area, Lamb Weston, operates a french fry processing plant employing about 700 workers. In 2000, Fluor Daniel Hanford constructed a new "shell" building at the Center, which will be customized for a future food processing tenant and is expected to generate another 100 jobs. The major reason for the rapid growth of the Tri-Cities in the 1970's was the expansion of the Hanford Nuclear Reservation, which has evolved into one of the largest nuclear industrial centers in the United States. Located in Benton County, the Hanford Reservation encompasses approximately 560 square miles and contains various nuclear and nuclear-related projects, serving as a national energy resource center. Today, the focus is on energy research, environmental remediation/waste management and related technology. A 40-year Tri-Party Agreement was signed by the U.S. Department of Energy, the State and the U.S. Environmental Protection Agency, which established a plan to "cleanup" the environment of the Hanford Reservation. The overall plan is intended to improve radioactive and chemical waste disposal and to manage future waste generated at the site. The commitment to tourism as a means of economic diversification has been a combined effort of the public and private sectors. In 1994, a professional minor league baseball stadium was built. The stadium seats 4,000 and includes a parking lot for 1 ,000 automobiles. The stadium is currently leased to Northwest Baseball Ventures I, LLC, owners of the Tri-City Dust Devils and an affiliate of the Colorado Rockies of Major League Baseball. In 1995, a $9.5 million Trade Recreation Agriculture Center (TRAC) was built through a joint venture between the City of Pasco and Franklin 4 County. TRAC includes a rodeo and livestock arena, exhibition hall, meeting rooms, a concession area, and administrative offices. Additionally, an adjoining 15-field soccer complex occupying 45 acres was developed in 1995 and shares the stadium parking lot. The complex is the State's second largest and has become a popular location for tournament play. In 2000, the City completed construction of a $3.5 million six field softball complex in the TRAC area. The City added lights to the softball fields in 2002. The push for additional tourism continues. A Pavilion was constructed at the TRAC facility that adds an ice rink and additional rental space; and in 2001 , the City owned Sun Willows Golf Course Clubhouse was completely renovated with the irrigation system completely replaced in 2003. Pasco is also the home of the regions only International airport and train and bus depots. SUMMARY OF CURRENT AND FUTURE ECONOMIC OUTLOOK The economy both nationally and locally has been a major news topic for the past several years. Incidents that have negatively impacted the economy are: the slowdown in the economy particularly in the manufacturing sector; inflation and interest rate increases, corporate bankruptcies, layoffs and relocations; the War on Terrorism; and soaring energy prices, particularly gasoline. Franklin County, in which Pasco is located, is currently the fastest growing area in Washington State. In 2006, Pasco continued its positive growth though the trend is showing signs of slowing. Residential home, retail business and professional office construction have continued to grow, with a high concentration of new growth taking place in the Highway 1-182 and Road 68 area. Wal-Mart has opened a super center store; Lowe's has opened a home improvement store; and a new 15-screen theater complex has recently opened. New restaurants and other service businesses have opened to serve the residential growth in the surrounding area. s Bybee Fresh Foods relocated and expanded its Yakima Valley operations to a new processing facility in Pasco, adding $10 million to the tax base. In conjunction with a grant from the state legislature, Pasco is preparing to construct a shade structure at the Dust Devils baseball stadium which would provide shade relief for spectators in the third base side bleachers. Phase II of the Sacajawea Heritage Trail is being completed. This is the final segment of the trail on the Pasco side of the Columbia River and when completed it will present a 23 mile regional trail throughout the Tri-Cities. Planning and land purchases have been made for an additional high school and an additional elementary to be built to accommodate population growth. These new businesses will provide additional jobs to Pasco job market. In 2006, the City issued a total of 2,246 Building Permits representing over $202 million in construction costs. Of the total permits, 729 were for new single-family residences and equates to $133 million in valuation. The average home price in Pasco was $140,779 in 2006, with a median home price of $139,000. MAJOR INITIATIVES Economic development, infrastructure improvements and continued improvement of the quality of life for its residents are the main emphasis of the City Council during the next two years. The City Council's 2006/2007 objectives are outlined in the following fifteen goals: • State Infrastructure - Work with state legislative representatives to obtain the financial assistance necessary to improve traffic flow at Broadmoor Blvd. interchange and construct a pedestrian overpass of SR395 at Court Street. • Industrial Development - Work with the Port and other entities to foster more industrial development, focusing 6 efforts in the following geographic areas: Sacajawea Industrial Park; Broadmoor Interchange; and Foster Wells/SR395. • Chiawana Park - Determine an appropriate means of making the federally-owned park available for public use without harming the City's ability to sustain existing municipal service levels. • Sewer Extension Program - Extend the municipal sewer system to un-served portions of the City and improve affected streets, providing for recovery of the cost over time as adjacent properties choose to connect to the sewer system. • Lewis Street Overpass - Work diligently to obtain federal and state assistance to construct the overpass as soon as is practicable. • Aquatic Facilities Action Plan - Develop and adopt an aquatic recreation action plan which will define what to do with the existing pools and how best to fulfill the aquatic facilities needs of Pasco's citizens. • Communication Program - Expand the traditional communication program to include full utilization of cable television's government access channel, providing pertinent local government information to Pasco citizens. • Internet Access Center - Create, as a pilot project, an "internet access center" to expand opportunity for internet access in the East Pasco neighborhood and evaluate the project's effectiveness for possible replication in other neighborhoods of the City. • Rivershore Trail - Complete the regional rivershore trail on the Pasco side of the river, thereby linking Sacajawea State Park and Chiawana Park via the trail. • City Website - Redesign the website to reflect a contemporary style and take advantage of "portal" technologies. • Downtown Revitalization - Continue to work collaboratively with downtown business interests to generate the necessary consensus and support for continued (and enhanced) downtown revitalization. • Municipal Center Space Needs - Develop a contemporary analysis of the work space needed to efficiently and effectively accommodate the projected growth of municipal service functions and associated employees over the next 20 years. • "Regional Centers" Plan - Work collaboratively with neighboring cities to jointly plan for development of "regional centers" through the existing PFDs. • Neighborhood Improvement Action Program - Work with individual neighborhoods to define appropriate improvements, foster code compliance and improvement of neighborhood infrastructure, while minimizing adverse impact on low-income households. • Bikeway Policy - Adopt a definitive policy to express where, how and to the extent to which, the City will provide for bicycle use on public ways. RISK MANAGEMENT The City has an active Risk Management Program that utilizes a combination of in-house staff and third party administrators to manage the City's Risk Programs. The City utilizes self-insurance in several areas. The Medical-Dental Fund receives revenues from other funds based on the medical/dental premiums contributed by the City for each full time employee. Medical and dental claims are paid from this fund along with administrative costs to The Epoch Group, LLC, a third party administrator. The City also reimburses the State of Washington Department of Employment Security for unemployment claims paid. ACKNOWLEDGEMENTS The preparation of this report on a timely basis was made possible by the dedicated service of the professional accounting staff of the Administrative and Community Services Department. We wish to express our appreciation to these staff members for their contributions to the development of this report. 8 In closing, we would like to thank the members of the City Council for their leadership and support in planning and conducting the financial affairs of the City in a responsible and progressive manner. Rea�,! 'G milt : �rf ru chfietd, Stanley R rebel, Directs: ity Manag r Administradve and Community Services 9 DIRECTORY OF CITY OFFICIALS As of December 31 , 2006 LENGTH OF TERM ELECTED OFFICIALS SERVICE EXPIRES MAYOR Joyce Olson 1 12/31/09 COUNCILMEMBERS Rebecca M. Francik 10 12/31/07 Michael Garrison 19 12/31/09 Robert Hoffman 2 12/31/09 Joe Jackson 17 12/31/07 Tom Larsen 6 12/31 /09 Matt Watkins, Mayor Pro-Tem 3 12/31/07 LENGTH IN YEARS OF ADMINISTRATIVE OFFICIALS POSITION SERVICE CITY MANAGER Gary D. Crutchfield 22 28 PUBLIC WORKS DIRECTOR Robert J. Alberts 12 12 ADMISTRATIVE Ft COMMUNITY SERVICES DIRECTOR Stanley R. Strebel 8 8 COMMUNITY DEVELOPMENT DIRECTOR Richard J. Smith 12 12 FIRE CHIEF Gregory L. Garcia 12 12 POLICE CHIEF Denis W. Austin 11 11 MUNICIPAL COURT JUDGE Mary B. Ramirez 20 20 10 MANAGEMENT TEAM As of December 31 , 2006 City Manager Gary Crutchfield, City Manager Lynne Jackson, Personnel Manager Administrative and Community Services Stanley R. Strebel, Director James W. Chase, Financial Services Manager Sarita Cooper, Customer Service/Utility Billing Supervisor Marjorie J. Worden, Information Services Manager Paul Whitemarsh, Recreation Services Manager Dan Dotta, Facilities Manager Community Development Richard J. Smith, Director Michel Nickolds, Inspection Services Manager Fire Gregory L. Garcia, Fire Chief John Fifer, Assistant Fire Chief Municipal Court Mary B. Ramirez, Judge Dorothy R. French, Court Administrator Police Denis W. Austin, Chief Michael D. Aldridge, Captain -Administration James Raymond, Captain - ISD Ken Roske, Captain - Patrol Public Works Robert J. Alberts, Director Mike McShane, Interim City Engineer Reuel Klempel, Plant Division Manager Jesse U. Greenough, Field Division Manager Guy Sundvik, Assistant Field Division Manager II CITY OF PASCO 2006 ORGANIZATION CHART PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COMMUNITY COURT & ECONOMIC JUDGE DEVELOPMENT DIRCTOR POLICE FIRE CHIEF CHIEF PUBLIC ADMINISTRATIVE WORKS/ & COMMUNITY ENGINEERING SERVICES DIRECTOR DIRECTOR I WATER/WW UTILITY/ ADMIN. SVCS. MUNICIPAL TREATMENT STREET MANAGER/ PROSECUTING PLANT DIV. MAINTENANCE CITY CLERK ATTORNEY MANAGER FIELD DIV MGR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER 12 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters in Accordance with Government Auditing Standards City of Pasco Franklin County January 1, 2006 through December 31. 2006 Mayor and City Council City of Pasco Pasco,Washington We have audited the financial statements of the governmental activities,the business-type activities,each major fund and the aggregate remaining fund information of the City of Pasco, Franklin County, Washington, as of and for the year ended December 31, 2006, which collectively comprise the City's basic financial statements, and have issued our report thereon dated November 9, 2007. The prior year partial comparative information has been derived from the City's 2005 financial statements that we issued our report thereon dated December 21,2006. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit,we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency,or combination of control deficiencies, that adversely affects the City's ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the City's financial statements that is more than inconsequential will not be prevented or detected by the City's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses,as defined above. Washington State Auditors Office 3 13 COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However,providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. However, we noted certain matters that we have reported to the management of the City in a separate letter dated November 15,2007. This report is intended for the information and use of management, the Mayor and City Council, federal awarding agencies and pass-through entities. However, 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. BRIAN SONNTAG,CGFM STATE AUDITOR November 9,2007 Washington State Auditors Office 4 14 Independent Auditor's Report on Compliance with Requirements Applicable to its Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 City of Pasco Franklin County January 1, 2006 through December 31. 2006 Mayor and City Council City of Pasco Pasco,Washington COMPLIANCE We have audited the compliance of the City of Pasco, Franklin County, Washington, with the types of compliance requirements described in the U.S. Office of Management and Budget(OMB)Circular A-133 Compliance Supplement that are applicable to its major federal program for the year ended December 31,2006. The City's major federal program is identified in the Federal Summary. Compliance with the requirements of laws,regulations, contracts and grants applicable to its major federal program is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States. Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City's compliance with those requirements. In our opinion,the City complied, in all material respects,with the requirements referred to above that are applicable to its major federal program for the year ended December 31,2006. INTERNAL CONTROL OVER COMPLIANCE The management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance, but not for the purpose of expressing an opinion on the Washington State Auditors Office 5 15 effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A control deficiency in an entity's internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is a more than remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency,or combination of significant deficiencies, that results in a more than remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity's internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses,as defined above. This report is intended for the information of management, the Mayor and City Council, federal awarding agencies and pass-through entities. However,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. ,�9. � BRIAN SONNTAG,CGFM STATE AUDITOR November 9,2007 Washington State Auditors Office 6 16 Independent Auditor's Report on Financial Statements City of Pasco Franklin County January 1, 2006 through December 31, 2006 Mayor and City Council City of Pasco Pasco,Washington We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Pasco, Franklin County, Washington, as of and for the year ended December 31, 2006, which collectively comprise the City's basic financial statements as listed on page 9. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year partial comparative information has been derived from the City's 2005 financial statements that we issued our report thereon dated December 21, 2006, we expressed unqualified opinions on the respective basic financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Pasco, as of December 31, 2006, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General and Arterial Street funds, for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management's discussion and analysis on pages 10 through 20 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However,we did not audit the information and express no opinion on it. Washington State Auditors Office 7 17 Our audit was performed for the purpose of forming an opinion on the financial statements that collectively comprise the City's basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States. Local Governments, and Non-Profit Organizations. This schedule is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. 'Id. C�;� BRIAN SONNTAG, CGFM STATE AUDITOR November 9,2007 Washington State Auditor's Office 8 18 MANAGEMENT DISCUSSION AND ANALYSIS This discussion and analysis of the City of Pasco's financial performance provides an overview of the City's financial activities for the fiscal year ended December 31, 2006. It is designed to: 1. assist the reader in focusing on significant financial issues; 2. provide an overview of the City's financial activity; 3. identify changes in the City's financial position (its ability to address the next and subsequent year challenges); 4. identify any material deviations from the financial plan, the adopted budget; and 5. identify individual fund issues or concerns. This year marks the fourth year that the City has presented its financial statements under the new reporting model required by the Governmental Accounting Standards Board's Statement No. 34 (GASB 34), Basic Financial Statements - and Management's Discussion and Analysis (MDEtA) - for State and Local Governments. This reporting model significantly changes both the recording and presentation of financial data. FINANCIAL INFORMATION Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The City's government-wide financial statements have been prepared on the full-accrual basis of accounting in conformity with generally accepted accounting principles (GAAP). The City's fund financial statements for its governmental group of funds (General, Special Revenue, Debt Service, and Capital Projects) have been prepared on the modified accrual basis of accounting in conformity with GAAP. The City's proprietary group of funds (Enterprise and Internal Service) and its Fire Pension funds are accounted for on the accrual basis. Cities and Counties of the State of Washington must comply with the Budgeting, Accounting and Reporting System (BARS) prescribed by the State Auditors Office. State law also provides for annual independent audits by the State Auditors Office and requires timely submission of annual financial reports to their office for review. Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The 19 internal control structure is designed to provide a reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of the control should not exceed the benefits likely to be derived; and, (2) the valuation of costs and benefits requires estimates and judgments by management. The City maintains budgetary controls in order to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds are included in the annual operating budget. A budget increase or decrease to a fund must be authorized by the City Council while appropriation changes within a fund may be authorized by the City Manager. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. The notes to these financial statements contain a more detailed description of significant governmental accounting policies. FINANCIAL HIGHLIGHTS • The Statement of Net Assets (See pages 34 Et 35), fiscal year December 31, 2006 ended with an Unrestricted Net Asset Balance of $15,943,732 in Governmental Activities. These monies are intended to provide a cushion against significant downturns in revenues and to maintain sufficient working capital and cash flows to meet daily financial needs. Other reserves have been designated by management to address annual budget amendments, furniture and equipment replacement, major building repairs, and future facilities. • Also shown on the Statement of Net Assets is an Unrestricted Net Asset Balance of $6,251,986 in the Business Activities category. These monies are intended to provide a cushion against significant downturns in revenues and to maintain sufficient working capital and cash flows to meet daily financial needs. Other reserves have been designated by management to address annual budget amendments, furniture and equipment replacement, major facility repairs, system improvements and future facilities. These reserves assist to minimize future debt. • From the Statement of Activities (See pages 36 Et 37), General Revenues, primarily from property, retail and other taxes were used to support the following major activities: 20 a. $8,146,549 for General Government purposes - Administration, Finance, City Council, and Facilities; b. $741,933 for Judicial services - Municipal Courts; c. $16,592,068 for Security of Persons and Property - Police, Fire, Probation Services, Violations, and Protective Inspections; d. $2,319,370 for Physical Environment - Engineering; e. $1,647,209 for Economic Environment - Community Development; f. $4,872,473 Cultural Et Recreation - Parks Et Recreation; g. $1,299,239 for Transportation - Streets Maintenance Et Improvements, Multi-Model Facility. h. $44,242 for Health and Human Services. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Assets and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City's finances. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside the government. REPORTING THE CITY AS A WHOLE The Statement of Net Assets and the Statements of Activities One of the most important questions asked about the City's finances is "Is the City as a whole better off or worse off as a result of the year's activities?" The Statement of Net Assets and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City's net assets and changes to them. You can think of the City's net assets - the difference between assets and liabilities - as one way to measure the City's financial health, or financial position. Over time, increases or decreases in the City's net assets are one indicator of whether its financial health is improving or deteriorating. You will need to consider other non-financial factors, however, such as changes in the City's property tax base and the condition of the City's roads, to assess the overall health of the City of Pasco. 21 The Statement of Net Assets and the Statement of Activities can be found on pages 34 to 37. In the Statement of Net Assets and the Statement of Activities, we divide the City into two kinds of activities: • Governmental activities - Most of the City's basic services are reported here, including the police, fire, courts, public works, community development, and parks departments, and general administration. Taxes, grants, and fees for services finance most of these activities. • Business-type activities - The City charges a fee to customers to help it cover all or most of certain services it provides. The City's Water/Sewer operations including the water, sewer, storm water management, process water reuse and irrigation systems are reported here. The City of Pasco at year end 2006 has improved its position since 2005. This is shown by the total increase net assets of $19,537,534. Of this increase $11,828,190 was in governmental activities and $7,709,344 was in business- type activities. Due to an increasing tax base and the expiration of a debt service levy, the City was able to lower its property tax rate by .1418 cents per thousand dollars of assessed property values. Much of the City's improved position has been due to continued commercial and residential construction and annexations of county property. Increased property tax collections have allowed the City to increase its staff size to service the increased population needs for public safety, transportation, cultural and recreation, water and sewer services, and general government activities. REPORTING THE CITY'S MOST SIGNIFICANT FUNDS Fund Financial Statements Fund financial statements provide detailed information about the most significant funds - not the City as a whole. The City's two kinds of funds - governmental and proprietary - use different accounting approaches. • Governmental Funds - Most of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. 22 Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds in a reconciliation at the bottom of the fund financial statements. • Proprietary Funds - When the City charges customers for the services it provides - whether to outside customers or to other units of the City - these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Assets and the Statement of Activities. In fact, the City's enterprise fund (a component of proprietary funds) is the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. We use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City's other programs and activities - such as the City's Medical/Dental Fund. THE CITY AS TRUSTEE Reporting the City's Fiduciary Responsibilities The City is the trustee, or fiduciary, for the Fire pension plan. It is also responsible for other assets that - because of a trust arrangement - can be used only for the trust beneficiaries. All of the City's fiduciary activities are reported in separate Statements of Fiduciary Net Assets and Changes in Fiduciary Net Assets. We exclude these activities from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. THE CITY AS A WHOLE Statement of Net Assets The City's combined net assets for fiscal year 2006 were $182,449,178. The following table reflects the condensed Statement of Net Assets. Financial information from 2005 financial statements is also presented for comparison purposes. 23 Tdje1 N#Ps9ds(nMlius) 2706 20M Gaamatd Rsnas— p Tdd Rinay G3 rrretd Rbnas&t Tdd Riney PcMes PcMes GXaMert PcMes PcMes GDHMet Qrrafta-ddhErAws $ 237 $ 159 $ 446 $ 322 $ 21.8 $ 54.0 QpdPads 71.2 1236 194.8 529 5a5 1034 U-ff NTKInutABAs 31 33 64 56 861 71.7 TddPssds $ 1030 $ 1478 $ 2158 $ 917 $ 1334 $ 7D1 LmgtteMDh $ 198 $ 3R2 $ y9O $ 211 $ 41.8 $ 61.9 co-ff udiliUes 25 1.9 4.4 22 26 48 Tdd Lathes $ 223 $ 41.1 $ 634 $ 223 $ 444 $ 837 %Aaet lrmstedinC 30 d,NAdD2t $ 51.1 $ 936 $ 1527 $ 47.8 $ 837 $ 117.5 Patided 57 1.8 75 57 1.3 70 Lhes ided 159 63 222 154 230 334 Tdd%Pffists $ 817 $ 101.7 $ 1824 $ 639 $ 91:0 $ 1629 See the Statement of Net Assets on pages 34 Ft 35 for detailed information. 24 Statement of Activities The following condensed table of changes in net assets compares the revenues and expenses for the current year. Financial information from 2005 financial statements is also presented for comparison purposes. Table 2 Changes in Net Assets (in Mllions) 2006 2005 CNeTrrorrtal Business-tylm Total Rimay GamTnental BLdness-type Total Rimary Acti\ities Activities Gay wnsnt Activities Activities Gwemnent Benues R-og'am : Charges for Servioes $ 11.4 $ 14.2 $ 25.6 $ 10.1 $ 13.1 $ 23.2 Operating Grants&Cantribdions 1.0 - 1.0 1.2 - 1.2 Capital G-arrts&Contributions 9.2 3.6 12.8 6.5 14.2 20.7 General Fbwnues: RnpertyTaxes 4.7 4.7 4.3 - 4.3 RWertyTaxes levied for Debt Servioe 0.6 0.6 0.6 - 0.6 Sales&Use Taxes 8.2 8.2 7.9 - 7.9 Oaxpatiord Uility Taxes 7.6 7.6 7.1 - 7.1 Cher Taxes 3.3 3.3 3.2 - 3.2 Frand ise Fees - - - 0.2 - 0.2 Investment Earrings 0.8 0.6 1.4 0.7 0.5 1.2 Mscellaneo s Pamxaes 1.5 3.1 4.6 2.6 3.6 6.2 Total Peverxies $ 48.3 $ 21.5 $ 69.8 $ 44.4 $ 31.4 $ 75.8 RngarneVerees in duclings irdred expenses: General CIUM Tent $ 8.2 $ - $ 8.2 $ 7.5 $ - $ 7.5 Judicial 0.7 0.7 0.6 - 0.6 R.blic Safety 16.6 16.6 14.0 - 14.0 R)dcallavirorvrent 23 23 1.7 - 1.7 Transportation 1.3 1.3 5.9 - 5.9 Health and H.rran Servioes - - 0.1 - 0.1 Eocna c Environment 1.6 1.6 0.9 - 0.9 0-itue and Rcreation 4.9 4.9 4.9 - 4.9 Interest an Long Term Debt 0.7 - 0.7 0.7 - 0.7 Water - 5.0 5.0 - 3.9 3.9 Sewer- - 5.7 5.7 5.9 5.9 Water Recess Buse - 1.6 1.6 1.5 1.5 Stain Water - 0.5 0.5 0.4 0.4 Irrigation - 0.7 0.7 - 0.5 0.5 Total FVenses $ 36.3 $ 13.5 $ 49.8 $ 36.3 $ 122 $ 48.5 Changes in Net Assets $ 120 $ 8.0 $ 20.0 $ 8.1 $ 19.2 $ 27.3 Transfers 0.1 (0.2) (0.1) (0.6) - (0.6) Total Changes in Net Assets 121 7.8 19.9 7.5 19.2 26.7 See the Statement of Activities on pages 36 &t 37 for detailed information. 25 Sources of Revenues 2006 Miscellaneous Revenues _Transfers 7% 0% Investment Earnings - 2% Charges for Services 37% r• Non-Property r;*. Taxes 27% +'rri«yr»r«yr»r«yr»r«yr»i«yr»r44•r44 t Yfirir473rirY73rirY73rir473rirY74�iri* - «21�f I ICI t Id i Id I ICI i 12� rr1iy i y+yry�Yyyr�ry�r�rYyyry� «yri•iyir�rtar�*tar» tar�*tar�*tar».'. Operating 4��r4�P &Grants Contributions '�- ribut'ons 1% Property Capital Grants Taxes & 8% Contributions 18% Sources of Revenues 2005 Miscellaneous Transfers Revenues 1% Investment 8% Charges for Services Earnings — � 29% 1% r'f Yyiri•Yy •f f •»«•»«• Y�•riyY�•Q•YOir''' COLO 14 4•i'iri*_44*Py". Non-Property »''•rrir°iiiii° '' Q*4 i+*4 i4*�yyr�*Jyra*Y�s Y�ia* «•r«•»«»»««r« i+* rJyra 4ysU•�yY Taxes g2�iD1�iDS�IbIdbl�tbll� 23%0 4 4 4 iri*4 iri*4riri*4 iri*YyYy •r»r4+•a*+•a*+•r�*+•a*+•r»r** ♦� 4ii 43i Yi Yii 4iyy ly •Y14 iri*4 iri*4 it*4 3�*4 iri*4TYyIQ*Yyyr •rVr»tYtr'�t 7•rV*Y•r»*«•rV*«,�•rVr»*«yr» iii 4ii 43i 43Y 43y 4iyi Y ««•V««V«♦»«•»«•»««• *Y�4 1.ri*43�*4 iri*4 iri*4y11--" - »»««r««r««r««r«• Operating rY�*4 iri*4 iri*4 iri*4 iri�'� +.«•oaaaa- � � � &Grants '- *ir*�'r' Contributions 1% Property Taxes — 5% Capital Grants & Contributions 32% 26 Functional Expenses for 2006 .Culture &Rec Int.on L-T Debt .Econ.Environ 9.83 1.41% 3.21% % Business-type Activities Transportation 27.11% 2.61% Physical .Environ ................ ................... 4.62% ........................ ....................... . . ........................ ........... ........................ ........................ . . . . . . . . . . ........................ ........................ . . . . . . . . . . ........................ ........................ . . . . . . . . ........................ ........................ . . . . . . . . ........................ ........................ . . . . . . . . ........................ ........................ . . . . . . . . ....................... ..................... . . . . . . . General ....................... ...................... . . . . . . Government ..................... ..................... . . . . ..................... ..................... . . . ................... 16.47% .................. .................. ........... Public Safety ....... 33.33% Judicial 1.41% Functional Expenses for 2005 .Econ.Environ Culture &Rec Int.on L-T Debt 1.86% 10.11% 1.45% Business-type Activities 25.21% Transportation 12.19% .... ... . . . . . . . ............ ............ . . . . . . . . .. . . . . . . . . . .......................... . . .. .. .. .. .............. .......................... . . . . . . . . . . . . . . . . General ............. . . . . . . Physical Government .Environ ...........M........... 15.50% ..................... ......................... ....... ................. ......................... 3.51% ................... ................... .................... .................... ................. .............. ........... Judicial Public Safety 1.24% 28.93% 27 Comments on Pasco's economic growth are contained in the Transmittal Letter. The City's assessed value grew 16.4% for fiscal year 2006. This was driven by the $202 million in new construction values added during 2006. The City's levy rate per $1,000 of assessed value was reduced by 5.9% in 2006. The City Funds Governmental Funds The governmental funds, as presented on the Governmental Funds Balance Sheet, reported a combined fund balance of $20,107,861 which is a 2.3% increase from the beginning of the year. Major Funds The General Fund a. Total assets decreased by $459,638. This decrease is due to repayment of interfund loans from non-major funds to cover negative cash balances. b. Total liabilities decreased by $43,787. c. Fund Balance decreased by $415,851 . This decrease is due to repayment of interfund loans from non-major funds to cover negative cash balances. General Fund basic financial statements can be found on pages 39 - 46. The Arterial Street Fund a. Total assets increased by $862,075. This is due to the receipt of grant payments for major construction projects that are underway and interlocal agreements for payment of improvements. b. Total liabilities decreased by $411,839. This decrease is due to a payment on an interfund loan from the General Fund to cover negative cash balance and paying down of accounts payable. c. Fund Balance increased by $1,273,914. This is due to the large cash influx related to grant payments for major construction projects. This is the second year that the Arterial Street fund has qualified as a Major Fund. This is due to the large multi-year overpass construction projects that currently underway. Over $8 million in construction project costs were incurred in this fund during 2006. The City of Pasco was funding the project in 28 whole until Federal and State grant reimbursements were received in 2006. In addition, the City will also be receiving partial funding for these projects from the Port of Pasco and Columbia Basin College. Arterial Street Fund basic financial statements can be found on pages 39 - 46. Business-type Funds Water/Sewer Fund Pasco's enterprise operations consist of the Water/Sewer Fund. This fund includes water, sewer, process water reuse, storm water and irrigation operations. The City's water system currently serves approximately 14,400 customers, 13,600 of which reside within City limits and approximately 88% of those are single-family residential customers. The latest water rate increase became effective on January 1 , 2004. The sewer system currently serves approximately 12,100 customers, 93% of which are single-family residential customers. Sewer rates were decreased by 10% effective on January 1, 2007. a. Total assets increased by $4,362,194. This was mainly due to the addition of $3,625,332 in donated infrastructure. b. Total liabilities decreased by $3,347,150 due to payments made on outstanding Long-term debt. c. Net assets increased by $7,709,344. Proprietary Fund basic financial statements can be found on pages 47 - 52. Governmental Fund Budget Highlights The following is a brief review of the budgeting changes from the original adopted budget to the amended final budget for the major governmental funds. • A budget amendment of $2,040,000 was made to revenues in the General Fund. These increases were mainly from higher than anticipated revenue streams for Sales 8t Use Tax, Building Permits and Occupational Utility Taxes. • $4,040,000 in expense increases were added to the General Fund to cover: increases in overtime costs for police, outsourced inspection services for building department; legal services and to allow spending of unanticipated revenue streams and their corresponding expenses. • $2,000,000 in unreserved ending fund balance in the General Fund was used in budget amendments to cover additional expenses not covered by additional revenues. These funds were mainly used to provide 29 $1,505,000 in interfund loans and $480,300 in interfund transfers to other funds. • Budget amendments of $3,260,000 for Intergovernmental revenues and $800,000 in interfund loans were made in the Arterial Street Fund. This increase reflected anticipated grant payments from the State and Federal Governments for street projects. • $4,060,000 in expense increase was added to the Capital Outlays for the Arterial Street Fund to cover construction project costs. Cash Management The City's investment policy is to minimize credit and market risk while maintaining a competitive yield on its portfolio. City funds are invested by fund or on the basis of pooled cash. All available funds not individually invested are invested as one source leading to higher interest yield than if invested on an individual fund basis. The cash flow needs of the City require our investments to be relatively short term in nature. The majority of idle cash is deposited with the State Treasurer in the Local Government Investment Pool. A smaller portion of the portfolio is invested in long term (up to five years) U.S. government securities. The entire investment portfolio is approximately $36,987,147. (See Schedule 13) Capital Assets and Debt Administration Capital Assets While the City of Pasco has implemented the major model portions of GASB Statement #34, the City will defer implementing the infrastructure portion prior to 2003 until the 2007 reporting cycle. As of year end 2006, the City had $200,905,737 invested in a variety of capital assets as illustrated in the following table. Capital assets net of depreciation increased by approx. $20.6 million in 2006. Of this amount $10.4 million was for governmental activity capital asset expenditures and infrastructure donations and $10.2 million was for business-type activity capital expenditures and infrastructure donations. 30 Table 3 Capital Assets at Year-End (Net of Depreciation) 2006 Governmental Business-type Activities Activities Total Land $ 5,409,461 $ 92,238 $ 5,501,699 Buildings & Structures 23,485,058 - 23,485,058 Improvements 6,313,423 - 6,313,423 Machinery& Equipment 1,662,446 - 1,662,446 Work-in-Progress 3,134,376 3,269,894 6,404,270 Infrastructure 31,812,469 - 31,812,469 Equipment Rental 2,231,578 862,687 3,094,265 Source of Supply - 103,716 103,716 Pumping Plants - 5,491,605 5,491,605 Treatment Plants - 23,915,664 23,915,664 Transmission, Distribution & Collection Lines - 58,992,323 58,992,323 General Plant Assets - 1,617,064 1,617,064 West Pasco Water System - 394,269 394,269 Plant Acquisition - 350,481 350,481 Industrial Waste Water Plant - 12,334,229 12,334,229 Irrigation - 16,861,741 16,861,741 Storm Water Assets - 2,571,013 2,571,013 $ 74,048,811 $ 126,856,924 $ 200,905,735 Table 4 Capital Assets at Year-End (Net of Depreciation) 2005 Governmental Business-type Activities Activities Total Land $ 5,233,357 $ 92,238 $ 5,325,595 Buildings & Structures 21,198,872 - 21,198,872 Improvements 4,961,676 - 4,961,676 Machinery& Equipment 2,092,150 - 2,092,150 Work-in-Progress 5,508,268 5,387,107 10,895,375 Infrastructure 22,278,170 - 22,278,170 Equipment Rental 2,364,262 927,797 3,292,059 Source of Supply - 110,256 110,256 Pumping Plants - 5,850,825 5,850,825 Treatment Plants - 20,931,446 20,931,446 Transmission, Distribution & Collection Lines - 50,014,540 50,014,540 General Plant Assets - 1,808,854 1,808,854 West Pasco Water System - 426,812 426,812 Plant Acquisition - 373,846 373,846 Industrial Waste Water Plant - 12,338,600 12,338,600 Irrigation - 16,092,625 16,092,625 Storm Water Assets - 2,318,503 2,318,503 $ 63,636,755 $ 116,673,449 $ 180,310,204 See Note 6, pages 68-70 for additional information on capital assets. 31 Debt Administration At December 31, 2006, the City had a number of debt issues outstanding. These issues include $12,765,000 of general obligation bonds, both voted and non-voted, $18,045,000 of revenue and revenue refunding bonds, and $190,000 of special assessment bonds. The City's general obligation bonds have maintained an Aaa rating from Moody's Investor Service. Each is backed with a municipal bond insurance policy by AMBAC Indemnity Corporation. Moody's rated the City's most recent water and sewer revenue bonds Aaa. Over the last several years the City has obtained Public Works Trust Fund loans to help finance several major construction projects. These loans have been financed at interest rates of 1 to 3%. The outstanding balance of these four loans totals $3,094,128 at December 31, 2006. The City is also utilizing the State Revolving Loan Fund to help finance the expansion of the sewer treatment plant. The City had drawn $22,726,011 as of December 31, 2006. The outstanding balance of this loan is $17,856,043. These loans each have a term of 20 years. In addition to the above listed debt, the City has three Local Option Capital Asset Lending (LOCAL) Program Washington State Loans; a loan with the Port of Pasco for the City's share of the new airport fire station debt and a loan with Franklin County for the City's share of the TRAC facility debt. The outstanding balance on these loans as of December 31, 2006 is $1,163,975. The City does not have any restrictions, commitments or other limitations that would significantly affect availability of fund resources. See Financial Note 10, pages 81-84 and Schedules 9, pages 146 to 149 for additional detailed information on debt amounts. Economic Factors The State of Washington, by constitution, does not have a state personal income tax and therefore the state operates primarily using property, sales, utility, and gasoline taxes. Local governments (cities, counties, school districts) primarily rely on property and a limited array of permitted other taxes (sales, utility, business and occupation) and fees (permits, licenses, etc.) for their government activities. There are a limited number of state-shared revenues and recurring and non-recurring grants from both the state and federal government. 32 Financial Contact The City's financial statements are designed to present users with a general overview of the City's finances and to demonstrate the City's accountability. If you have questions about this report or need additional information, contact the City's Finance Department, 525 N. 3rd Avenue, Pasco, Washington 99301. 33 City of Pasco Statement of Net Assets December 31, 2006 Governmental Business-Type Activities Activities Total ASSETS Current Cash & Cash Equivalents $ 8,919,208 $ 6,294,301 $ 15,213,510 Investments 10,527,211 6,905,708 17,432,918 Receivables (net of allowances) Taxes 2,679,017 - 2,679,017 Customer Accounts 5,858,018 783,410 6,641,428 Due from Other Funds - 1,098,858 1,098,858 Notes Receivable - - - Interest Receivable 106,142 68,022 174,164 Other Receivables 523,120 254,311 777,431 Inventories 7,706 319,924 327,630 Prepaid Insurance - 26,593 26,593 Land 5,409,461 92,238 5,501,699 Joint Ventures 334,507 - 334,507 Capital Assets, Net of Depreciation 33,692,505 47,640,728 81,333,233 Construction Work In Progress 3,134,376 3,269,894 6,404,270 Infrastructure, Net of Depreciation 31,812,469 75,854,064 107,666,533 Deferred Charges - 185,180 185,180 TOTAL ASSETS 103,003,740 142,793,231 245,796,971 LIABILITIES Liabilities Accounts Payable 896,654 451,263 1,347,917 Matured GO Bonds - - - Interfund Loans Payable 1,057,700 71,158 1,128,858 Due to Other Governmental Units 10,119 30,800 40,919 Retainage Payable - 463,839 463,839 Deposits Payable 292,850 55,429 348,279 Interest Payable - 87,683 87,683 Other 223,294 - 223,294 Deferred Revenue - 751,810 751,810 Non-Current Liabilities Deferred Revenue 4,117,140 - 4,117,140 Unclaimed Property 2,391 17,573 19,964 Unamortized Discount on Refunding Debt - (8,824) (8,824) Claims Incurred Not Reported 125,000 - 125,000 Due within One Year 2,505,189 2,857,537 5,362,726 Due in More than One Year 13,041,679 36,297,508 49,339,187 Total Liabilities 22,272,016 41,075,776 63,347,792 NET ASSETS Invested in Capital Assets, Net of Related Debt 59,050,242 93,667,005 152,717,247 Restricted for: Advances to Other Funds - 1,057,700 1,057,700 Debt Service 2,487,644 740,764 3,228,408 Capital Improvements 15,165 - 15,165 Other Restricted 3,234,940 - 3,234,940 Unrestricted (deficit) 15,943,732 6,251,986 22,195,719 Total Net Assets $ 80,731,723 $ 101,717,455 $ 182,449,178 See accompanying notes to the basic financial statements. 34 City of Pasco Statement of Net Assets December 31, 2005 Governmental Business-Type Activities Activities Total ASSETS Current Cash & Cash Equivalents $ 11,250,894 $ 10,981,148 $ 22,232,042 Investments 8,448,686 8,560,386 17,009,073 Receivables (net of allowances) Taxes 2,532,135 - 2,532,135 Customer Accounts 4,226,167 662,631 4,888,798 Due from Other Funds - 675,708 675,708 Notes Receivable - - - Interest Receivable 328,966 284,752 613,718 Other Receivables 415,171 133,555 548,726 Inventories 14,598 230,028 244,626 Prepaid Insurance - 25,021 25,021 Land 5,233,357 92,238 5,325,595 Joint Ventures 356,309 - 356,309 Capital Assets, Net of Depreciation 30,616,960 45,086,909 75,703,869 Construction Work In Progress 5,508,268 5,387,108 10,895,376 Infrastructure, Net of Depreciation 22,278,170 66,107,194 88,385,364 Deferred Charges - 204,358 204,358 TOTAL ASSETS 91,209,681 138,431,037 229,640,718 LIABILITIES Liabilities Accounts Payable 1,490,546 1,075,396 2,565,942 Matured GO Bonds 20,000 - 20,000 Interfund Loans Payable 618,446 109,612 728,058 Due to Other Governmental Units (22,146) 51,945 29,799 Retainage Payable - 316,269 316,269 Deposits Payable 321,432 15,506 336,938 Interest Payable - 380,504 380,504 Other 235,145 - 235,145 Deferred Revenue - 672,398 672,398 Non-Current Liabilities Deferred Revenue 3,022,520 - 3,022,520 Unclaimed Property 1,986 15,202 17,188 Unamortized Discount on Refunding Debt - (9,710) (9,710) Claims Incurred Not Reported 125,000 - 125,000 Due within One Year 2,460,141 2,800,632 5,260,773 Due in More than One Year 14,033,078 38,995,172 53,028,250 Total Liabilities 22,306,148 44,422,926 66,729,074 NET ASSETS Invested in Capital Assets, Net of Related Debt 47,803,957 69,646,174 117,450,131 Restricted for: Advances to Other Funds - 675,708 675,708 Debt Service 2,662,865 752,958 3,415,823 Capital Improvements 15,165 - 15,165 Other Restricted 3,055,950 - 3,055,950 Unrestricted (deficit) 15,365,596 22,933,271 38,298,868 Total Net Assets $ 68,903,533 $ 94,008,111 $ 162,911,644 See accompanying notes to the basic financial statements. 35 atyof Pasco State-ert of Acclivity For the Year Bided D�31,2006 Net(F )R-erxaes and Program Re� Charxjes in Nat Assets Operating Ftirray Govermnent Charges for Grants and Capital Gaits Go�rrrental &.sines,Type Fu-clonal Rpgarrs Epeises Servioes Ccntnhutions &CcririMons Atvities Activities Total Primary GWenwB t: Ctal Activities: General C-kaenrrert $ 8,146,549 $ 4,679,106 $ 181,902 $ - $ (3,285,541) $ - $ (3,285,541) Judicial 741,933 850,761 - - 108,828 108,828 RblicSdety 16,592,063 1,862,297 194,195 - (14,535,576) (14,535,576) Ftysical B-Mrornpnt 2,319,370 797,728 - - (1,521,642) (1,521,642) Transportation 1,299,239 809,454 - 9,161,394 8,671,609 8,671,609 Heelth and Hxren Services 44,242 - 23,407 - (20,835) (20,835) EocnomcEnvirament 1,647,209 1,780,393 645,114 83,000 861,298 861,298 Ciltue and Recreation 4,872,473 582,703 - - (4,289,770) (4,289,770) Interest on Lang Term Debt 631,825 - - (681,825) (681,825) Total Gu m atel Activities 36,344,908 11,362,442 1,044,618 9,244,394 (14,693,454) - (14,693,451•) R,mess-Nm Activities: Water 5,050,598 5,639,373 - 1,748,019 2,336,794 2,336,794 SeAff 5,724,267 6,132,616 - 930,354 1,338,703 1,338,703 VVater FYooess Pase 1,558,076 1,444,200 - - (113,876) (113,876) StonmVVater 518,408 408,027 - 310,062 199,681 199,681 Irrigation 748,126 561,477 - 636,897 450,248 450,248 Total Business-NmActivities 13,599,475 14,185,E 3,625,332 4,211,549 4,211,549 Total Ri way Gk� $49,944,383 $25,548,134 $ 1,044,618 $12,869,726 (14,693,454) 4,211,549 (10,481,905) General PeA es: Taxes: Rc:pertyTexes 4,748,822 - 4,748,822 FYopertyTaxes Wed for Debt Service 554,260 554,260 Sales&Use Taxes 8,225,795 8,225,795 Ompatiorel UlityTaxes 7,560,655 7,56Q655 OtherTaces 3,305,358 3,305,358 Investirent Earnings 849,559 622,290 1,471,849 MsoellaneousPevexes 1,562,070 3,136,171 4,698,241 Total General Fbvuxffi 26,806,519 3,758,461 30,564,980 Transfers 113,478 (183,227) (65,749) Total Fbverxaes 26,919,997 3,575,234 30,495,231 Charge in Net Assets 12,226,543 7,786,783 20,013,326 Rior Year A4ustrrents (398,353) (106,358) (504,711) Assets R.rcixsed in Other Fuxls - 28,919 28,919 Net Assets Beginning 68,903,533 94,008,111 162,911,644 Net Amets Ending $80,731,723 $101,717,455 $ 182,449,178 See accorrpa tying notes to the basic finenaal statements. 36 aty of Pasoo Staternent of Activity For the Year Ended December 31,2005 Net(Exloerses)Reverxaes and Program Revenues Changes in Net Assets Operating Prirrmy Government Charges for Grants and Capital Grants Governmental Business-Type Functional Programs ExPerses Services Contributions &Contributions Activities Activities Total PrimaryGovenwa t: Governmental Activities: General Government $ 7,494,952 $ 4,128,238 $ 153,930 $ $ (3,212,784) $ - $ (3,212,784) Judicial 620,544 756,615 - - 136,071 136,071 Public Safely 14,003,815 1,784,055 172,808 - (12,046,952) (12,046,952) Physical Environment 1,689,606 674,536 - (1,015,070) (1,015,070) Transportation 5,944,289 45,075 - 6,547,280 648,066 648,066 Health and Hurrnn Services 45,044 - 18,280 - (26,764) (26,764) Eon me Environment 933,784 1,961,083 853,597 - 1,880,896 1,880,896 Culture and Recreation 4,892,990 744,158 - - (4,148,832) (4,148,832) Interest on tong Term Debt 714,225 - - (714,225) (714,225) Total Governmental Activities 36,339,249 10,093,760 1,198,615 6,547,280 (18,499,594) - (18,499,594) Business-type Activities: Water 3,949,704 5,046,468 - 4,203,949 5,300,713 5,300,713 -%W 5,877,674 5,916,663 - 4,623,597 4,662,586 4,662,586 Water Process Reese 1,465,822 1,275,027 - - (190,795) (190,795) Storm Water 377,349 395,520 - 850,297 868,468 868,468 Irrigation 544,310 477,973 - 4,524,987 4,458,650 4,458,650 Total Business-type Activities 12,214,859 13,111,651 - 14,202,830 - 15,099,622 15,099,622 Total PnniaryGovemment $48,554,108 $23,205,411 $ 1,198,615 $20,750,110 (18,499,594) 15,099,622 (3,399,972) General Revenues: Taxes: Property Taxes 4,323,410 4,323,410 Property Taxes levied for Debt Service 559,661 559,661 Sales&Use Taxes 7,857,149 7,857,149 Occupational Utility Taxes 7,100,471 7,100,471 Other Taxes 3,222,808 3,222,808 Franchise Fees 173,285 - 173,285 Investment Earrings 708,699 534,273 1,242,972 Miscellaneous Revenues 2,656,353 3,586,435 6,242,788 Total General Revenues 26,601,836 4,120,708 30,722,544 Transfers (583,811) (57,871) (641,682) Total Revenues 26,018,025 4,062,837 30,080,862 Change inWAssets 7,518,431 19,162,459 26,680,890 Prior Year Adj ustments 2,137,547 230,871 2,368,418 Net Assets Beginning 59,247,555 74,614,781 133,862,336 Net Assets Ending $68,903,533 $ 94,008,111 $ 162,911,644 See accorrpanying notes to the basic financial statements. 37 THIS PAGE LEFT INTENTIONALLY BLANK 38 City of Pasco Balance Sheet Governmental Funds December 31, 2006 2006 2006 2006 2006 120 Other Total General Arterial Street Governmental Governmental Fund Fund Funds Funds ASSETS Current Cash & Cash Equivalents $ 2,186,092 $ 189,410 $ 5,794,461 $ 8,169,963 Investments 2,671,890 231,502 6,708,074 9,611,466 Receivables (net of allowances) - Taxes 2,567,580 - 111,437 2,679,017 Customer Accounts 1,191,980 455,321 4,210,717 5,858,018 Interfund Loans Receivable 1,875,403 6,050 - 1,881,453 Interest Receivable 34,501 577 63,496 98,574 Other Receivables 22,271 47,620 453,229 523,120 TOTAL ASSETS $ 10,549,717 $ 930,480 $ 17,341,414 $ 28,821,611 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 450,207 $ 100,386 $ 323,210 $ 873,803 Matured GO Bonds - - - - Interfund Loans Payable - 800,000 2,204,153 3,004,153 Due to Other Governmental Units 1,329 - 8,790 10,119 Bonds, Notes, Loans Payable - 190,000 190,000 Deposits Payable 292,850 - 292,850 Interest Payable - - - - Other 2,978 53,067 167,249 223,294 Deferred Revenue 1,048,193 - 3,068,947 4,117,140 Unclaimed Property 2,391 - - 2,391 Total Liabilities 1,797,948 953,453 5,962,349 8,713,750 Fund Balances Reserved for: Advances to Other Funds $ 1,875,403 $ 6,050 $ - $ 1,881,453 Debt Service - - 2,487,644 2,487,644 Capital Improvements 15,165 - 15,165 Other Reserves - 3,234,940 3,234,940 Unreserved, Reported in: General Fund 6,861,201 - 6,861,201 Special Revenue Funds - (29,023) 6,144,182 6,115,159 Debt Service Funds 670,640 670,640 Capital Project Funds - (1,158,341) (1,158,341) Total Fund Balances 8,751,769 (22,973) 11,379,065 20,107,861 TOTAL LIABILITIES AND FUND BALANCES $ 10,549,717 $ 930,480 $ 17,341,414 Amounts reported for governmental activities in the statements of net assets are different because: balance in government funds 20,107,860 Capital Assets used in governmental activities are not financial resources and therefore are not reported in the government funds. 72,151,740 Internal Service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of internal service funds are included in the governmental activities in the Statement of Net Assets. 3,747,905 Interfund loans between governmental funds were netted against each other to eliminate duplication of amounts. 65,000 Some liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (15,340,782) Net assets of governmental activities $ 80,731,723 See accompanying notes to the basic financial statements. 39 City of Pasco Balance Sheet Governmental Funds December 31, 2005 2005 2005 2005 120 Other Total General Arterial Street Governmental Governmental Fund Fund' Funds Funds ASSETS Current Cash & Cash Equivalents $ 2,613,023 $ $ 7,796,569 $ 10,409,592 Investments 3,216,110 4,571,554 7,787,664 Receivables (net of allowances) - Taxes 2,424,593 - 107,542 2,532,135 CustomerAccounts 1,006,872 6,833 3,212,462 4,226,167 Interfund Loans Receivable 1,549,194 8,950 - 1,558,144 Interest Receivable 99,750 - 206,226 305,976 Other Receivables 99,813 52,622 262,736 415,171 TOTAL ASSETS $ 11,009,355 $ 68,405 $ 16,157,089 $ 27,234,849 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 602,176 $ 304,935 $ 500,155 $ 1,407,266 Matured GO Bonds 10,000 - 10,000 20,000 Interfund Loans Payable - 979,465 1,344,775 2,324,240 Due to Other Governmental Units (30,712) - 8,566 (22,146) Bonds, Notes, Loans Payable - 275,000 275,000 Deposits Payable 321,432 - 321,432 Interest Payable - - - - Other - 80,892 154,253 235,145 Deferred Revenue 936,853 - 2,085,667 3,022,520 Unclaimed Property 1,986 - - 1,986 Total Liabilities 1,841,735 1,365,292 4,378,416 7,585,443 Fund Balances Reserved for: Advances to Other Funds $ 43,400 $ 8,950 $ - $ 52,350 Debt Service - - 2,662,865 2,662,865 Capital Improvements 15,165 - 15,165 Other Reserves - 3,055,950 3,055,950 Unreserved, Reported in: General Fund 9,109,055 - 9,109,055 Special Revenue Funds - (1,305,837) 6,218,067 4,912,230 Debt Service Funds 281,474 281,474 Capital Project Funds - (439,683) (439,683) Total Fund Balances 9,167,620 (1,296,887) 11,778,673 19,649,406 TOTAL LIABILITIES AND FUND BALANCES $ 11,009,355 $ 68,405 $ 16,157,089 Amounts reported for governmental activities in the statements of net assets are different because: balance in government funds 19,649,406 Capital Assets used in governmental activities are not financial resources and therefore are not reported in the government funds. 61,628,802 Internal Service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of internal service funds are included in the governmental activities in the Statement of Net Assets. 3,681,380 Interfund loans between governmental funds were netted against each other to eliminate duplication of amounts. 147,650 Some liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (16,203,705) Net assets of governmental activities $ 68,903,533 This is the first year that the Arterial Street Fund has qualified as a Major Fund. Prior year comparative data is not presented for this fund. See accompanying notes to the basic financial statements. 40 City of Pasco Statement of Revenues, Expenditures,and Changes in Fund Balances Governmental Funds For the Year Ended December 31,2006 Other Total General Arterial Street Governmental Governmental REVENUES Fund Fund Funds Funds Taxes 20,449,947 $ - $ 2,911,557 $ 23,361,504 Licenses&Permits 1,912,608 - 203,626 2,116,234 Intergovernmental Revenue 1,408,019 7,899,711 1,494,435 10,802,165 Charges for Services 2,889,296 - 1,498,842 4,388,138 Fines&Forfeitures 796,721 - 32,037 828,758 Investment Income 324,402 (46,543) 503,547 781,406 Miscellaneous Revenue 689,057 4,150 1,328,736 2,021,943 Total Revenues 28,470,050 7,857,318 7,972,780 44,300,148 EXPENDITURES Current: General Government 4,284,489 - - 4,284,489 Judicial 741,933 - - 741,933 Public Safety 13,598,115 - 1,994,522 15,592,637 Physical Environment 1,420,422 - 188,159 1,608,581 Transportation - - 1,132,745 1,132,745 Health and Human Services 9,668 - 34,574 44,242 Economic Environment 368,318 - 312,545 680,863 Culture and Recreation 3,082,238 - 744,842 3,827,080 Capital Outlay 1,129,542 8,058,955 4,999,065 14,187,562 Debt Service Principal 484,803 - 635,345 1,120,148 Interest 412,179 - 269,646 681,825 Total Expenditures 25,531,707 8,058,955 10,311,443 43,902,105 Excess of Revenues Over(Under)Expenditures 2,938,343 (201,637) (2,338,663) 398,043 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - - Proceeds of General L-T Debt - - - - Insurance Recoveries 530 - 109 639 Operating Transfers-(In) 80,681 1,491,807 4,291,941 5,864,429 Operating Transfers-(Out) (3,574,000) - (2,092,627) (5,666,627) Total Other Financing Sources(Uses) (3,492,789) 1,491,807 2,199,423 198,441 Net Change in Fund Balances (554,446) 1,290,170 (139,240) 596,484 Prior Year Adjustments 138,595 (16,256) (260,368) (138,029) Fund Balance Beginning 9,167,620 (1,296,887) 11,778,673 19,649,406 Fund Balance, Ending $ 8,751,769 $ (22,973) $ 11,379,065 $ 20,107,861 See accompanying notes to the basic financial statements. 41 City of Pasco Statement of Revenues, Expenditures,and Changes in Fund Balances Governmental Funds For the Year Ended December 31,2005 Other Total General Arterial Street Governmental Governmental REVENUES Fund Fund` Funds Funds Taxes $ 19,443,035 $ - $ 2,752,581 $ 22,195,616 Licenses&Permits 2,326,524 - 11,770 2,338,294 Intergovernmental Revenue 1,194,620 813,729 1,485,662 3,494,011 Charges for Services 2,461,477 27,663 1,736,439 4,225,579 Fines&Forfeitures 709,212 - 36,831 746,043 Investment Income 281,235 (279) 380,089 661,045 Miscellaneous Revenue 571,894 525,459 1,316,561 2,413,914 Total Revenues 26,987,997 1,366,572 7,719,933 36,074,502 EXPENDITURES Current: General Government 4,195,820 - - 4,195,820 Judicial 620,544 - - 620,544 Public Safety 11,968,001 - 1,619,825 13,587,826 Physical Environment 1,257,059 - 186,811 1,443,870 Transportation - - 1,103,984 1,103,984 Health and Human Services 11,491 - 33,553 45,044 Economic Environment 341,930 - 305,604 647,534 Culture and Recreation 2,815,344 - 648,799 3,464,143 Capital Outlay 1,102,360 3,949,577 3,169,946 8,221,883 Debt Service Principal 479,651 - 626,207 1,105,858 Interest 465,894 - 248,331 714,225 Total Expenditures 23,258,094 3,949,577 7,943,060 35,150,731 Excess of Revenues Over(Under)Expenditures 3,729,903 (2,583,005) (223,127) 923,771 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets 25,695 - 15,130 40,825 Proceeds of General L-T Debt - - - - Insurance Recoveries 19,197 - 11,074 30,271 Operating Transfers-(In) 302,007 470,000 4,549,843 5,321,850 Operating Transfers-(Out) (2,639,392) - (3,428,906) (6,068,298) Total Other Financing Sources(Uses) (2,292,493) 470,000 1,147,141 (675,352) Net Change in Fund Balances 1,437,410 (2,113,005) 924,014 248,419 Prior Year Adjustments 70,729 (4,476) 63,463 129,716 Fund Balance Beginning 7,659,481 820,594 10,791,196 19,271,271 Fund Balance, Ending $ 9,167,620 $ (1,296,887) $ 11,778,673 $ 19,649,406 This is the first year that the Arterial Street Fund has qualified as a Major Fund. Prior year comparative data is not presented for thi: See accompanying notes to the basic financial statements. 42 City of Pasco Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Year Ended December 31,2006 Net change in fund balances-total governmental funds $ 552,997 Amounts reported for governmental activities in the Statement of Activities are different because of the following reconciling items: In the Statement of Activities, Capital Grants and Contributions reported the donated valuation of Arterial Streets Infrastructure from local developers. This amount is not reflected in the governmental fund statements. 520,233 Governmental funds report capital outlays as expenditures. However, in the Statement of Net 9,698,056 Assets they are reported net of depreciation as a capital asset. This is the amount by which capital outlays exceeded depreciation in the current period. Repayment of bond principal is an expenditure in the governmental funds, but the payment reduces long-term liabilities in the Statement of Net Assets. This is the amount of debt service payments for bonds. This amount comes from the Statement of Revenues, Expenditures, and Changes in Fund Balances for Government Funds. 1,120,148 Adjustment for interfund transfers recorded as expenditures in governemental funds but are reconciled in Statement of Activities. This amount comes from the Statement of Activities. 113,478 Accruals for compensated absences reported in the statement of activities are not reported as expenditures in government funds. This amount is the additional accrual for 2006. 52,225 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in funds. This amount consists of$530 for the disposition of assets and $109 in insurance recoveries. 639 Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of internal service funds is reported with governmental activities. This amount comes from the Combining Statement of Revenues, Expenditures and Changes in Net Fund Assets for Internal Service Funds. 83,767 Change in net assets of governmental activities $ 12,141,543 See accompanying notes to the basic financial statements. 43 City of Pasco Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Year Ended December 31,2005 Net change in fund balances-total governmental funds $ 248,419 Amounts reported for governmental activities in the Statement of Activities are different because of the following reconciling items: In the Statement of Activities, Capital Grants and Contributions reported the donated valuation of Arterial Streets Infrastructure from local developers. This amount is not reflected in the governmental fund statements. 5,160,204 Repayment of bond principal is an expenditure in the governmental funds, but the payment reduces long-term liabilities in the Statement of Net Assets. This is the amount of debt service payments for bonds. This amount comes from the Statement of Revenues, Expenditures, and Changes in Fund Balances for Government Funds. 1,105,858 Adjustment for interfund transfers recorded as expenditures in governemental funds but are reconciled in Statement of Activities. This amount comes from the Statement of Activities. (583,811) Accruals for compensated absences reported in the statement of activities are not reported as expenditures in government funds. This amount is the additional accrual for 2005. 136,682 Capital Improvement Fund but paid for through interfund transfers from other governmental funds. 1,584,870 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in funds. This amount consists of$40,825 for the disposition of assets and $30,271 in insurance recoveries. 71,096 Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of internal service funds is reported with governmental activities. This amount comes from the Combining Statement of Revenues, Expenditures and Changes in Net Fund Assets for Internal Service Funds. (204,887) Change in net assets of governmental activities $ 7,518,431 See accompanying notes to the basic financial statements. 44 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL GENERALFUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ 18,705,000 $ 19,705,000 $ 20,449,947 $ 1,744,947 $ 744,947 Licenses&Permits 935,450 1,835,450 1,912,608 977,158 77,158 Intergovernmental Revenue 989,000 1,029,000 1,408,019 419,019 379,019 Charges for Services 2,459,010 2,559,010 2,889,296 430,286 330,286 Fines&Forfeitures 702,400 702,400 796,721 94,321 94,321 Investment Income 233,000 233,000 324,402 91,402 91,402 Miscellaneous Revenue 448,250 448,250 689,057 240,807 240,807 Total Revenues 24,472,110 26,512,110 28,470,050 3,997,940 1,957,940 EXPENDITURES Current: General Government 4,465,999 4,251,699 4,284,489 181,510 (32,790) Judicial 667,515 748,515 741,933 (74,418) 6,582 Public Safety 12,570,173 14,212,473 13,598,115 (1,027,942) 614,358 Physical Environment 1,316,485 1,450,485 1,420,422 (103,937) 30,063 Transportation - - - - Health and Human Services 6,200 6,200 9,668 (3,468) (3,468) Economic Environment 355,790 371,390 368,318 (12,528) 3,072 Culture and Recreation 2,861,115 3,103,415 3,082,238 (221,123) 21,177 Capital Outlay 2,090,450 2,244,250 1,129,542 960,908 1,114,708 Debt Service - - Principal 570,750 570,750 484,803 85,947 85,947 Interest 446,440 446,440 412,179 34,261 34,261 Total Expenditures 25,350,917 27,405,617 25,531,707 (180,790) 1,873,910 Excess of Revenues Over(Under)Expenditures (878,807) (893,507) 2,938,343 3,817,150 3,831,850 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets 10,000 10,000 - (10,000) (10,000) Proceeds of General L-T Debt - - - - - Insurance Recoveries - - 530 530 530 Transfers-In 135,500 135,500 80,681 (54,819) (54,819) Transfers-(Out) (1,999,500) (2,479,800) (3,574,000) (1,574,500) (1,094,200) Total Other Financing Sources(Uses) (1,854,000) (2,334,300) (3,492,789) (1,638,789) (1,158,489) Net Change in Fund Balances (2,732,807) (3,227,807) (554,446) 2,178,361 2,673,361 Prior Year Adjustments - 138,595 138,595 138,595 Fund Balance Beginning 6,000,000 6,000,000 9,167,620 3,167,620 3,167,620 Fund Balance,Ending $ 3,267,193 $ 2,772,193 $ 8,751,769 $ 5,484,576 $ 5,979,576 See accompanying notes to the basic financial statements. 45 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL ARTERIAL STREET FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ $ - $ $ - $ Licenses&Permits - - Intergovernmental Revenue 3,468,600 6,728,600 7,899,711 4,431,111 1,171,111 Charges for Services - - - - - Fines&Forfeitures - - Investment Income 10,000 10,000 (46,543) (56,543) (56,543) Miscellaneous Revenue - 4,150 4,150 4,150 Total Revenues 3,478,600 6,738,600 7,857,318 4,378,718 1,118,718 EXPENDITURES Current: General Government - - - - - Judicial - - Public Safety - - Physical Environment - - Transportation - - Health and Human Services - - Economic Environment - - Culture and Recreation - - - - Capital Outlay 4,785,000 8,845,000 8,058,955 (3,273,955) 786,045 Debt Service - Principal - - - Interest - - - Total Expenditures 4,785,000 8,845,000 8,058,955 (3,273,955) 786,045 Excess of Revenues Over(Under)Expenditures (1,306,400) (2,106,400) (201,637) 1,104,763 1,904,763 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - Proceeds of General L-T Debt - Insurance Recoveries - - - - - Transfers-In 355,000 355,000 1,491,807 1,136,807 1,136,807 Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 355,000 355,000 1,491,807 1,136,807 1,136,807 Net Change in Fund Balances (951,400) (1,751,400) 1,290,170 2,241,570 3,041,570 Prior Year Adjustments - - (16,256) (16,256) (16,256) Fund Balance Beginning 1,500,000 1,500,000 (1,296,887) (2,796,887) (2,796,887) Fund Balance,Ending $ 548,600 $ (251,400) $ (22,973) $ (571,573) $ 228,427 See accompanying notes to the basic financial statements. 46 Otyd F bsm ateret d NA Pssds Ri#etaYRj-&. FcrtheYea-6zbd Q3oarber 31,2006 2006 m B.aressTg a BSnessT)M Acmes Cj,errretd fl.aressType Peres C1aernretd aiinessTAB 6tepise Rnt PdMes Pcd\hes Blaose Ftrd; Pdvbes Acmes VVtee/Sane- Inbrd Samoa IrtEn d Se mae V\tWSwff Interd Samoe Irterel S3moe Fud Fink Rnk Rxd Fink Fut PS�fS ax Asset CL ae &a�Eq.mets $ 5042286 $ 749,246 $ 607,858 $ Q594,839 $ 841,301 $ 802179 Fbojvdles(net cf dlo ffum) L.tilityFb v es 78:1;410 - - 6E2,631 - - OuFboj\ddes 25,311 - - 133555 - - NlesFbod\ede - - - - - - Irtetrd Lames Fbodvele 1,051,700 180,000 41,159 675708 20Q000 - Irteest Fbod\dJe 61,221 7,56B 6;801 23288 22990 21,464 CLefrcmG3kmTetd Uits - - - - - - Nbd-EndselrrYetay 31Q924 7,706 - 23QC28 14,59B - Rod Ins ra ce 4593 - - 25021 - - Tdsl OffErtAsets $ 7,515425 $ 944,40 $ 655;817 $ 11,585070 $ 1,07$889 $ 82 643 NTtQ.nstPGqets Irrsrets $ 6;16?770 $ 915745 $ 742,988 $ a016, 2 $ 0,M $ 514,159 FbsbidedPssetis Cbbt S3,kai Cash&CashEc}.Wets 614,177 - - 594,131 - - Lad 92238 - - 92238 - - ajldn:oautxesAn uaTets F4jM,et&gdff s BQ19,342 4,506,096 1,65Q28B %055 703 4,655999 1,46Q379 Lesskaxnldedllpedeficn (72416;301) (2274,518) (79Q601) (1Q897,591) (2291,737) (532,58 Irfiatut e 9Q31$525 - - 7$787,138 - - Less AaxnldedQTiedeficn (14,464,461) - - - QxEbudicnV\dklnPaxjess 3s2 891 - - 5387,10B - - D3feredOiW 185180 - - 2?4,358 - - Tctd NMQrretAS& $ 132986;364 $ 3;147,323 $ 1,605825 $ 124,55Q3E8 $ 3025295 $ 1,471,94 TOTA-ASEM $ 140,531,789 $ 4,(191,842 $ 2,251,442 $ 134135438 $ 4,10,174 $ 2295599 47 uAau-nES CUfert Liabilities: Pomi-ts Ra We $ 449,011 $ 22,851 $ 2,252 $ 1,050,147 $ 83,280 $ 25249 U.etoChffGaiarnents 30,800 - - 51,915 - - PletaW Paade 463,839 - - 316,269 -Mixed GO Bonds - - - - - - Curet RTtion Bax�PaAe 1,270,000 - - 1,256,000 - - Curet Rxticn Lows Payable 1,427,663 - - 1,389,995 - - Deposits 56,429 - - 15506 - - Irterest Payatle 87,683 - - 380,501 - - DeFe'red Cteciis 751,810 - - 672,398 - - TctaCurertLiablities $ 4,530235 $ 22,851 $ 2,252 $ 5131,764 $ 83Z)D $ 25249 Njn-( rrert Liabilities GnpersatedAtsenoes $ 151,990 $ 16,066 $ 7,884 $ 147,753 $ 14,514 $ 7,884 Clams Inaared Nit Fated - 125000 - - 125000 - thdamed Rrperty 17,573 - - 15202 - - Baxts PaAe 1996%e ue Rakr ing Bads Series 1,615000 - - 1,700,OOD - - 199B uxin,0 Bails Series B 527QODD - - 5805,000 - - 1996Fb��rxingEb d Series 515000 - - 615000 - - 1999 Fie Bait 635,000 - - 680000 - - 2001 Pem- a Ba-&, 730000 - - 795000 - - 20Q2 Paum Baxls 5065000 - - 5,300000 - - 2005 Pe"w Boxis 4,210,000 - - 4,400,000 - - Less:Offert Rxticn (1,270,000) - - (1,250000) - - tharrrxtimd DismLa on FbFi ng Debt ($824) - - (9,710) - - Loans P.�We Pvff LaTs 35094,128 - - 3,417,217 - - SFFLoan 17,856,013 - - 18,922,950 - - Interfl-dLows - 85,000 71,158 - - 109,612 Less:Offert Rxtim (1,427,663) - - (1,380995) - - Tctal Nit- trr Lief ilities $ 36,458,247 $ 22%086 $ 79,(A2 $ 39,14$417 $ 185,514 $ 117,496 Tctei Liablities $ 40,994,482 $ 248,937 $ 81,294 $ 44,280,181 $ 222-794 $ 142745 IETASSETS In esirne t in Capita Assets,NA d Fbeted Debt $ 92,804,318 $ 2,239,Z)4 $ 862-687 $ 68571$377 $ 2,378,860 $ e27,797 PaMdedforD&Sermce 1,757,306 180,000 41,158 615,093 200,000 - llrestrided 4,975683 1,42;3,621 1,276,303 22,491,787 1,302,520 1,225057 Tda NkAssets $ 99,537,307 $ 3,842,905 $ 2,180,148 $ 91,850257 $ 3,881,380 $ 2,152,854 Seeaooarparryirg rrtes tote bascfinEmel stda-nerts. 48 Qty of Pasoo Statement of Revenues,Expenses,and Changes in Fund Net Assets Proprietary Funds For the Year Ended Decernber 31,2006 2006 2005 Governmental &isiness-type Governmental Business-type Business-type Activities Activities Business-type Activities Activities Activities Intemal Intern Activities Internal Intemal Enterprise Funds Service Funds Service Funds Enterprise Funds Service Funds Service Funds Water/Serer Water/Seaver Fund Total Total Fund Total Total OPERATING REVENUES Charges for Services-Internal $ - $ 3,149,252 $ 451,560 $ - $ 2,645,800 $ 349,140 Charges for Services-Other 13,730,957 241,742 3,175 12,746,130 254,662 16,381 Mscdlaneous Revenue 2,486,668 - - 2,962,362 - Total Operating Revenues 16,217,625 3,390,994 454,735 15,708,492 2,900,462 365,521 OPERATING EXPENSES Personal Services 2,301,789 178,211 19,900 2,148,829 162,958 - Supplies 282,581 - - 239,053 - - Other Services&Charges 3,140,209 - 2,830,432 - Taxes 1,905,927 - - 1,850,962 - - NUnterrance Expenses - 595,600 161,942 - 547,210 120,894 Insurance Claims and Expenses - 2,360,390 - - 2,126,918 - Deprecation 3,818,741 17,219 264,018 3,478,137 287,641 33,837 Capital Outlays - 183,123 165,537 - 190,913 - Total Operating Expenses 11,449,247 3,334,543 611,397 10,547,413 3,315,640 154,731 OPERATTNGINCOIVE(LOSS) 4,768,378 56,451 (156,662) 5,161,079 (415,178) 210,790 NON-OPERAMNG REVENUES(DIES) Interest and Investment Revenue 571,321 68,153 50,969 491,592 47,654 42,681 Proceeds from Debt Issuance - - - - - - Famiand Rentals 626,292 - 582,630 - InterestExpense (1,495,401) - (1,466,426) - Arnortization Expense (43,430) - (46,289) - Mscellaneo s Non-Operating Revenues 23,211 - - 41,443 - - Total Non4erating Revenues(Expenses) (318,007) 68,153 50,969 (397,050) 47,654 42,681 Income(Loss)before Contributions and Transfers 4,450,371 124,604 (105,693) 4,764,029 (367,524) 253,471 Capital Contributions 3,625,332 - 14,202,830 - - Transfers Out (430,000) - (59,263) (300,000) - (157,637) Transfers In 306,036 (40,837) 309,611 162,637 - Changes in Net Assets 7,951,739 83,767 (164,956) 18,976,470 (204,887) 95,834 Prior Year Adjustments (269,689) (303,811) 163,331 316,050 130,332 (85,179) Assets Purchased in Other Funds - 181,569 28,919 - 308,824 90,155 NET'ASSETS-BEGINNING 91,855,257 3,881,380 2,152,854 72,562,737 3,647,111 2,052,044 NET ASSETS-ENDING $ 99,537,307 $ 3,842,905 $ 2,180,148 $ 91,855,257 $ 3,881,380 $ 2,152,854 See accor paNng notes to the basic financial statements. 49 Qlyd F'asm Sagrert cf Paeta�BpaBEE�axiQw:psin RrdMPss&DAJI Rodayllr&3 RrfBYeTEritdDw rba-31,2105 RBrE%TjpaAWies OMMErtd Mma-ypa ErtelaisaRnt PeiivitiES PCMES V\i#a Same- RooessVAEr Sanvda Irriom Irterd Samoa Irte�SrvioE qB,ekm q3Tacrr, Fie Chas darns Tcd Firms Fug Q�MWNEMlt.6 Qugssfa-Savicr s-IrtmA $ - $ - $ - $ - $ - $ $14Q252 $ 451,531 Qugasfcr9aviees-ChEr 51&1,638 5132616 1,444,2)0 4CQC27 561,477 15736,957 241,742 6,175 MsodlaroaBPea1e 985110 1,521585 - - 248566E - - Tctd CBArgRmrLes 6,156,748 7,6E�174 1,444,27D 40RC27 561,477 16,217,62 5396,934 454,735 QFEF4%1ME>FMS Ram-d Savics 815756 944,T2 167,530 7 424 144,347 23D1,789 178,211 15900 S-Wies 14797 113051 35776 2380 4,557 282581 - - OhTS3ices&Qar� 1,231,932 1,016,357 5)5983 191,442 193,512 $14Q29 - Taes 785073 794,813 244,911 42242 35883 1,905927 - - Nb teErUE)B pa-ees - - - - - - 59C60D 161,942 Irsraroa0arrsa-dBpasm - - - - - 2336,39D - D13adebrn 1,1M833 2017,285 29Q908 m940 334,712 581$741 17,219 X018 alital arias - - - - - 18 123 165537 TctdCjrArgBpasm 4,075441 4,883,251 1,255(B1 51$408 716,046 11,445247 5334,543 611,397 CFEF;AIr\GIN3QE(LCP 20753)7 Z7185913 191,109 11Q381 154, 4,tM378 55451 155 N N G E RQ 1 W,FEV 3,LM p FRNB 3� IrkrestazllrMs4YertFamB 217,13 255s1 51,419 17,140 17,140 571,31 EE�153 56,9e9 RoosgtfrrmL-TDeU IsRBm - - - - - Faniat Fits - - 625Z2 - 62522 - - IrteEq Epffm (335W (833;617) (29184 - (32CP (1,495401) - PnutzabmE)pasa (26,238) (4,3q (1Q8A - - (4543 - - N4sodlamsNnq3a-ebrgPbHLEs 15506 5706 - - - 4211 - - Tctd W4a-ubrgFbmmF oa-Es) (13 153) (5378 32,7,B 17,140 (14,940) (31$007) 0153 519ED IrwTe4Es)befare Cat bkma-dTra-des 1,945154 22} 133 56,835 (9a2fl) (16Q5p 4,459371 1X,601 (1056p C ljtd QrbiLbcrs 1,745019 936,354 - 31QO62 635897 3625332 - Tra ds Ot (215000) (2150)D) - - - (439000) Trades In - 3TC86 - - - 3CrjO86 (4Q837) - QaisinMPssds 547$173 6,225523 555835 215821 467,388 7,951,739 85767 (164;9 Ria-YeffPcJrslrreis (28Q6P (305811) 165331 PssrfsRKNssdinOhyRrcls - 181,a) 2$919 f LTAS M-®MV G 91,8Y257 6,851,383 2152854 WTPS3EiS-E3\DP\G $ 9R537,307 $ 5&12,915 $ 218.1148 Sa9ammporrgrdffib lebmcfinEndd stbwts 50 City,of Pasco Statement of Cash Rms Proprietary Funds For the Year Ended December 31,2006 2006 2005 Governmental 5Biness-type Governmental Business-type Business-type Activities Activities Business-type Activities Activities Activities Internal Internal Activities Internal Internal Enterprise Funds Service Funds Service Funds Enterprise Funds Service Funds Service Funds Water/Somr Water/Sevver Fund Total Total Fund Total Total CASH FLOW FROM OPERATING ACTIVITIES: Receipts from Customers $ 16,098,679 $ 3,413,308 $ 469,398 $ 15,901,921 $ 2,897,861 $ 365,521 Payments for Maintenance&Ops. - (987,531) (370,376) 0 (906,456) (100,999) Payments for Merchandise (372,477) (73,743) 0 0 Payments for Wages (2,297,552) (2,123,556) 0 0 Payments for Operating Expenses (3,742,917) (2,811,139) 0 0 Internal Activities-payments to other funds 0 0 0 Payments for Taxes (1,927,072) (1,829,389) 0 0 Payments to Employees - (2,388,650) - 0 (2,098,796) 0 Net Cash provided(used)by operating activities 7,758,661 37,127 99,022 9,064,094 (107,391) 264,522 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: - Prior Year Adjustments (796,531) 13,223 (6,658) (9,874) (9,712) Transfers In(Out) (123,964) 44,163 (138,875) (598,021) 162,637 (48,025) Non-Operating Revenue 649,503 - 624,073 0 0 Net Cash provided from norrcapital financial activities (270,992) 57,386 (145,533) 26,052 152,763 (57,737) CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Capital Assets (3,161,542) - (2,902,028) - (224,987) Principal Paid on Bonds&Loans (2,644,996) (2,346,078) Interest Paid on Bands&Loans (1,791,743) (1,508,669) Construction Work in Process (10,237,872) (4,123,395) Proceeds of Bonds 4,353,338 Payments received from Notes and Loans 39,500 Net Cash Used by Capital&Related Financing Activities (17,836,153) (6,487,332) (224,987) CASH FLOWS FROM INVESTING ACTIVITIES: Interfund Loans (381,993) - - - - - Investment Activities Income 759,160 68,153 50,969 415,856 47,654 42,681 Net Cash Provided from Investing Activities 377,167 68,153 50,969 415,856 47,654 42,681 NON CASH ACTIVITIES: Capital Contributions 3,625,333 Net Increase(Decrease)in Cash and Cash Equivalents (6,345,984) 162,666 4,458 3,018,670 93,026 24,479 Cash and Cash Equivalents January 1 18,195,197 1,502,324 1,346,338 15,176,527 1,409,300 1,321,859 Cash and Cash Equivalents December 31 $ 11,849,213 $ 1,664,990 $ 1,350,796 $ 18,195,197 $ 1,502,326 $ 1,346,338 There were no norrcash activities from investing or financing in 2006. See accompanying notes to the basic financial statements. 51 Criycf Ftsm 3atarat of Carr Rom Rq 4aryRrit Fcr theYeEr Fr3d Lboart a31,3706 3706 20M Cesar Ta-d B-dre&W GmnTBtal E3.eregtype Rjsiru&ype Activities Pdivities B drffi&tmm Activities Adi\Aties Activities Inbard Irtard Activities Irterel Irterel Rta7se Furls S3moe R.r&� Savioe R nt Ertapise Furl Service Fort; Service R.r&� Vita/Saiva V\Uer/Sena Rxd Trial Total Rid Tctri Trial FEOULAMCNCFa3EP MIWCnE(Lt pTOWr i� HDA®BYCFBZ4IWGPCIwES NA OpTAirg InanB $ 4,768,378 $ 56,451 $ (154662) $ 5161,079 $ (41,5178) $ 210,790 ADIHrV13gSTOF LECFB:?AnNG IN3JVETOIvE7C4--+JPOADED(l7BD)BY CFEPAn ,AM116 Ll�oticn 3818,741 17,219 334,018 3,478,137 287,641 33,837 Gr g�s in a;sdsaxt liatalitiea (InoB@gp DsoE --in Ojkm Pceei\edes (241,536) 22,314 14,663 (67,563) (2601) - (InaeaseyQscr me inREpidEVatses (1,572) - 2 811 - - (IrrmasayDamEseinIme aloes (89,896) - (73743) - Ina-aBe'(Ixaeae)inO.daTe•D-Tcats 3Q922 - (4,432) - - Inaease'(Damase)inAoaxxtsPalkie (601,136) (6Q429) (22,997) 234,535 16,116 19,895 lnmeEe'(IaoeEse)in UxdeiaEd Rrpaty 2,370 - - 2,635 - - IroEme'(Qsome)inD-etoCthaFut (563) - - - - - Inm sd(t )in Deferred Fbxw 886 - - - - InaBasY(Daam se)inTaes Page (2Q592) - - 21,573 - - Inau BY(Iaatese)inOjTpa-6dedAbsaroa; 4,237 1,572 - 25273 6630 - InaEasa'(t7eaece)inAiamMrimmDqxsts 79,412 - - 262793 - - NAC3srRoscbbtCpa-ingPdvities $ 7,75RO $ 37,127 $ 93022 $ 9,064,09 $ (107,3 $ 264,522 SeeaurTporgnxestottebesicfiratd stature-t& 52 City of Pasco Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2006 Fire Pension Agency Fund Funds ASSETS Cash & Cash Equivalents $ 951,548 $ 176,517 Receivables (net of allowances) Other Receivables - - Loans Receivable - - Interest Receivable 7,437 - Investments, at FMV 3,272,760 - Total Assets 4,231,745 176,517 LIABILITIES Accounts Payable - - Due to Others - 176,517 Total Liabilities - 176,517 NET ASSETS Held in Trust for Pension Benefits & Other Purposes $ 4,231,745 $ - See accompanying notes to the basic financial statements. 53 City of Pasco Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the Year Ended December 31, 2006 Fire Pension Fund ADDITIONS Taxes $ 34,834 Investment Earnings Interest 50,580 Dividends 160,071 Net Increase (Decrease) in Fair Value of Investments 266,951 Loan Interest 2,329 Total Additions 514,765 DEDUCTIONS Pension Benefits 144,814 Medical Premiums 66,288 Administrative Expenses 16,060 Total Deductions 227,162 Change In Net Assets 287,603 Prior Year Adjustments (2,574) NET ASSETS- BEGINNING 3,946,716 NET ASSETS - ENDING $ 4,231,745 See accompanying notes to the basic financial statements. 54 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Pasco have been prepared in conformity with generally accepted accounting principals (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 significant accounting policies are described below. A. REPORTING ENTITY The City of Pasco was incorporated on May 4, 1891 and operates under the laws of the State of Washington applicable to a Non-Charter Code City with a council/manager form of government. As required by the generally accepted accounting principles the financial statements present the City of Pasco - the primary government. The City is a general-purpose government and provides police and fire protection, a municipal court, ambulance services, engineering, street construction and maintenance, planning and zoning, parks and recreation services, and a public library. The City also owns and operates a cemetery, a water system, a sewer system, a process water reuse system, a storm water management system and an irrigation system. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of Changes in Net Assets) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities, page 36, demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Our policy is to allocate indirect costs to a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements for a particular function or segment. Taxes and other items 55 not properly included among program revenues are reported instead as general revenues. Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 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, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are 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 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. However, debt service expenditures, as well as expenditures related to compensated absences and claim and judgments, are recorded only when payment is due. Property taxes, licenses, and interest associated within the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessment receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City of Pasco reports the following major governmental funds: The General Fund is the City's operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. 56 The Arterial Street Fund is a special revenue fund. It is designated for the construction of new streets, street improvements and street infrastructure projects. The City reports the following major proprietary fund: Water/Sewer fund - includes water, sewer, process water reuse, storm water and irrigation operations. Additionally, the City reports the following fund types: Internal service funds account for equipment replacement and operation, central stores, and medical/dental insurance services provided to other departments of the City on a cost reimbursement basis. The pension trust fund is used to account for the sources and uses of funds to meet the pension benefit rights of those firemen covered under the Plan prior to the creation of Law Enforcement Officers and Fire Fighters (LEOFF) pension system in 1970. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of the interfund activity has been eliminated for the government-wide financial statements. Exceptions to this general rule are interfund loan made from fiduciary funds to governmental funds. Amounts reported as program revenues include 1) charges to customers, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. General revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Water/Sewer Fund are charges to customers. The major services provided by the proprietary fund are water, sewer, storm drain, irrigation and industrial waste water processing. Operating expenses for 57 enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non- operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as needed. D. BUDGETARY INFORMATION 1. Scope of Budget Annual appropriated budgets are adopted for the general and special revenue funds and for all proprietary funds on the modified accrual basis of accounting. Budgets for debt service and capital project funds are adopted at the level of the individual debt issue or project and for fiscal periods that correspond to the lives of debt issues or projects. Annual appropriated budgets are adopted at the level of the fund, except in the general fund, where expenditures may not exceed appropriations at the department level and the budgets constitute the legal authority for expenditures at that level. Appropriations for general and special revenue funds lapse at year-end, except for appropriations for capital outlays, which are carried forward from year to year until fully expended or the purpose of the appropriations has been accomplished or abandoned. Encumbrances accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservation of fund balances and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. 2. Procedures for Adopting the Original Budget The City's budget procedures are mandated by RCW 35A.33. The steps in the budget process are as follows: 1 . Prior to the first Tuesday in November, the City Manager submits a proposed budget to the Council. This budget is based on priorities established by the Council and estimates provided by departments during the preceding months, and balanced with revenue estimates made by the Finance Manager. 58 2. The Council conducts public hearings on the proposed budget in November and/or December. 3. The Council makes its adjustments to the proposed budget and adopts by ordinance a final balanced budget no later than December 31 . 4. Within 30 days of adoption, the final budget is available to the public. 3. Amending the Budget The budget, as adopted, constitutes the legal authority for expenditures. The City's budget is adopted at the fund level, so that expenditures may not legally exceed appropriations at that level of detail. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of a fund, or that affect the number of authorized employee positions, salary ranges, hours, or other conditions of employment must be approved by the City Council. When the City Council determines that it is in the best interest of the City to increase or decrease the appropriation for a particular fund, it may do so by ordinance approved by one more than the majority after holding one public hearing. The budget amounts shown in the financial statements are the final authorized amounts as revised during the year. The financial statements contain the original and final budget information. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable for the fiscal year. 4. Excess of Expenditures Over Appropriations The Stadium/Convention Center Fund exceeded budgeted appropriations by $73,164. This over expenditure was the result of an $83,000 payment to the General Fund for debt service. The Equipment Rental Operations Fund - W/S exceeded budgeted appropriations by $46,705. This over expenditure was the result of a $59,263 payment to the Equipment Rental Operations Fund - Governmental for its share of 2006 supply and inventory item costs. 59 The Equipment Rental Replacement Fund - W/S exceeded budgeted appropriations by $429,555. Expenditures for this fund were budgeted under the Equipment Rental Replacement Fund - Governmental budget. The Central Stores Fund exceeded budgeted appropriations by $4,802. This was due to purchases for inventory items. 5. Deficit Fund Equity The following funds report a deficit fund equity position at December 31, 2006. FUND DEFICIT EQUITY BALANCE Arterial Street Fund $ (22,973) Cemetery Fund (129,207) Stadium/Convention Center Fund (22,490) Medical/Dental Fund (82,758) Equip. Rental Op. Fund - W/S (81,294) LID Construction Fund (1,251,176) The following steps have been taken to eliminate the above deficits: The LID Construction Fund will receive a funds transfer in 2007 for ULID 141 and ULID 142 when bonds are funded in 2007 for these projects. The Arterial Street Fund has several major construction projects in process that require the City to front monies for work and await reimbursement from the State of Washington and Federal Government for roadway grant monies. Once reimbursements are received the deficit in this fund should be eliminated. The Cemetery Fund continues to try and increase sales in excess of costs to assist in the elimination of its deficit. The fund was able to reduce the deficit by over $65,000 in 2006 as a result of operating transfers and sales revenues. Tax revenues received in 2007 will make up the deficit in the Stadium/Convention Center Fund. Payment of debt service costs left this fund in a deficit position. Both City and Employee contributions are being increased effective June 2007 to counter the deficit in the Medical/Dental Fund. The deficit has been the result of increased claims. 60 Increased contributions for operating costs in 2007 will make up the deficit in the Equipment Rental Operations Fund - W/S. E. ASSETS, LIABILITIES AND EQUITIES 1. Cash and Equivalents It is the City's policy to invest all temporary cash surpluses. At December 31, 2006, the treasurer was holding $12,194,025 in short-term residual investments of surplus cash and $21,653,370 in investments longer than one year. Investment amounts maturing within one year are classified on the balance sheet as Cash and Cash Equivalents in various funds. Investments with maturity beyond one year are classified as Investments. The interest earnings on these investments are prorated to the various funds based on cash balances. The amounts reported as cash and cash equivalents also include compensating balances maintained with certain banks in lieu of payment for services rendered. The average compensating balances maintained during 2006 were approximately $6.1 million. For purposes of the Statement of Cash Flows, the City considers all highly liquid investments (including restricted assets) with maturity of three months or less when purchased to be cash equivalents. 2. Investments - See Note 4, pages 65-66. 3. Receivables Taxes receivable consists of property, sales, gambling, utility taxes and related interest and penalties. (See Note 16, pages 86-87.) Accrued interest receivable consists of amounts earned on investments, notes, and contracts at the end of the year. Special assessments are recorded when levied. Special assessments receivable consist of current and delinquent assessments. Deferred assessments on the fund financial statements consist of unbilled special assessments that are liens against the property benefited. As of December 31, 2006, $68,252 in special assessments receivable was delinquent. Of this delinquent amount, $40,139 or 58.81% is on property that is owned by the City and will be recovered as part of the sale price of the property. Customer accounts receivable consists of amounts owed from private individuals or organizations for goods and services including amounts owed for which billings have not been prepared. Notes and contracts 61 receivable consists of amounts owed on open accounts from private individuals or organizations for goods and services rendered. 4. Amounts Due to and from Other Funds and Governments, Interfund Loans and Advances Receivable Activity between funds that are representative of [ending/borrowing arrangements outstanding at the end of the fiscal year are referred to either "interfund loans receivable/payable" or "advances to/from other funds." All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between funds are reported in the government-wide financial statements as "internal balances." A separate schedule of interfund loans receivable and payable is furnished in Note 15, pages 85-86. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 5. Inventories Inventories in governmental funds consist of expendable supplies held for consumption. The cost is recorded as an expenditure when individual inventory items are purchased. The reserve for inventory is equal to the ending amount of inventory to indicate that a portion of the fund balance is not available for future expenditures. A comparison to market value is not considered necessary. Inventories in proprietary funds are valued using a floating average of costs for each item. 6. Restricted Assets and Liabilities These accounts contain resources for construction and debt service in enterprise funds. The current portion of related liabilities is shown as Payables from Restricted Assets. Specific debt service requirements are described in Note 10, pages 80-83. The restricted assets of the enterprise fund as of December 31, 2006 are composed of the following: Cash and Investments - Debt Service $ 644,178 Cash Deposits 84,401 Total Restricted Assets 728 579 62 7. Capital Assets and Depreciation - See Note 6, pages 67-70. Capital assets, which include property, plant, and equipment and infrastructure assets, are reported in the applicable governmental or business-type columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of 3 years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially expend assets lives are not capitalized. Major outlays for capital assets and improvements are reported as Construction Work in Progress as projects are constructed. Interest incurred during the construction phase of the capital assets of business- type activities is included as part of the capitalized value of the assets constructed. Capital Assets and improvements are capitalized once the project is completed. There were no capitalized interest costs incurred by the City during fiscal year 2006. Property, plant and equipment of the primary government are depreciated using the straight-line method over the following estimated useful lives: ASSETS YEARS Buildings 40 Improvements 20 Machinery Ft Equipment 10 8. Other Property and Investments - See Note 4, pages 65-66. 9. Compensated Absences The City accrues accumulated unpaid vacation and sick leave and associated employee related costs when earned (or estimated to be earned) by the employee. All vacation and sick pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. Sick leave may be accumulated up to a maximum of 960 hours for all employees except firefighters. Firefighter sick leave may be accumulated up to a maximum of 840 hours. Sick leave is payable at a rate of 25% up to a maximum of 720 payout hours upon resignation, retirement or death. 63 Vacation leave may be accumulated up to a maximum of one and a half time the employee's annual vacation accrual rate and is payable upon resignation, retirement or death. 10. Other Accrued Liabilities These accounts consist of accrued wages and accrued employee benefits. 11. Long-Term Debt - See Note 10, pages 80-83. 12. Deferred Revenue This account includes amounts recognized as receivables but not revenues in governmental funds because the revenue recognition criterion has not been met. 13. Fund Reserves and Designations In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences Between the Governmental Funds Balance Sheet and the Government-Wide Statement of Assets The governmental funds' balance sheet includes a reconciliation between fund balance - total governmental funds and net assets - governmental activities as reported in the government-wide statement of net assets. This information can be found on the Balance Sheet for Government Funds on pages 39-40. B. Explanation of Certain Differences Between the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities The governmental funds' statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. This information can be found on the Reconciliation of the 64 Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities on pages 43-44. NOTE 3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY There have been no material violations of finance-related legal or contractual provisions. NOTE 4. DEPOSITS AND INVESTMENTS A. DEPOSITS The City's deposits and certificates of deposit are covered by federal depository insurance (FDIC) or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Program (PDPC). The PDPC is a statutory authority established under Chapter 39.58 of the Revised Code of Washington. B. INVESTMENTS As required by state law, all investments of the City's funds (except as noted below) are obligations of the U. S. Government, U. S. agency issues, obligations of the State of Washington, general obligations of Washington State municipalities, the State Treasurer's Investment Pool, or certificates of deposits with Washington State banks and savings and loan institutions. Investments of (pension/nonexpendable) trust funds are not subject to the preceding limitations. All temporary investments are stated at purchase price. Investments are shown on entity-wide Statement of Net Assets at fair market value. Investments are reported within Cash Et Cash Equivalents or Investments of Governmental Activities and within Cash Et Cash Equivalents or Investments of Business-type Activities. The fair market value of investments is based upon quoted market prices as of December 31, 2006. 65 As of December 31, 2006, the City had the following investments: FAIR MARKET MATURITIES VALUE INVESTMENTS Federal Agency Securities 19,089,677 18,871,860 Mutual Funds 1,579,554 2,781,509 Investment in State Treasurer's Investment Pool 2,064,785 2,064,785 Savings Accounts 12,194,025 12,194,025 Total Investments 34,928,041 $ 35,912,179 Custodial credit risk is the risk that in event of a failure of the counterpart to an investment transaction the city would not be able to recover the value of the investment or collateral securities. Of the city's total position of $35,912,179 in 2006, $21,653,369 is exposed to custodial credit risk because the investments are held by the city's brokerage firm, with is also the counterparty in those particular securities. NOTE 5. PROPERTY TAXES The County Treasurer acts as an agent to collect property taxes levied within Franklin County for all taxing authorities. Taxes are levied annually on January 1, on property value listed as of the prior May 31. Assessed values are established by the County Assessor at 100% of fair market value. At least once every six years by law, the Assessor is required to physically inspect and value all taxable real property in the County. Currently, the Assessor uses a four year review cycle. Taxes are due in two equal installments on April 30 and October 31. The County Treasurer remits collections weekly to the appropriate district. 66 The following Property Tax Calendar for Franklin County, Washington provides the relevant property tax data for the 2006 tax year. Franklin County, Washington 2006 Property Tax Calendar City of Pasco January 1.............................. Taxes levied and become an enforceable lien against properties. February 15...........................Tax bills are mailed. April 30................................. First of two equal installment payments is due. May 31.................................... Assessed value of property established for next year's levy at 100 percent of market value. October 31........................... Second installment is due. Property taxes are recorded as a receivable and revenue when levied. Property taxes collected in advance of the fiscal year to which they apply are recorded as deferred revenue and recognized as revenue of the period to which they apply. No allowance for uncollected taxes is established because delinquent taxes are considered fully collectible. Prior year tax levies were recorded using the same principal, and delinquent taxes are evaluated annually. The City may levy up to $3.60 per $1,000 of assessed valuation for general governmental services, subject to two limitations: Washington State Constitution and Washington State law, RCW 84.55.010 limit the rate. The City's general levy for 2006 was $2.391221 per $1,000 on an assessed valuation of $2,313,853,466 for a total regular levy of $4,754,526. NOTE 6. CAPITAL ASSETS A. Capital Assets Capital assets activity for the year ended December 31 , 2006 was as follows: 67 Beginning Ending Balance Balance Governmental Activities 01/01/06 Increases Decreases 12/31/06 Capital assets, not being depreciated Land $ 5,233,357 $ 176,104 $ 0 $ 5,409,461 Construction in Progress 5,508,267 0 2,373,891 3,134,376 Total capital assets, not being depreciated 10,741,624 176,104 2,373,891 8,543,837 Capital assets, being depreciated Buildings 29,561,499 1,331,133 0 30,892,632 Improvements other than buildings 4,961,676 2,554,917 0 7,516,593 Machinery Et Equipment 2,092,149 668,524 0 2,760,673 Infrastructure 23,655,080 11,514,940 0 35,170,020 Equipment Rental 4,655,999 0 149,903 4,506,096 Total capital assets being depreciated 64,926,403 149,903 80,846,014 16,069,514 Less accumulated depreciation (3) for: Buildings 6,639,001 768,572 0 7,407,573 Improvements other than buildings 915,784 287,386 0 1,203,170 Machinery 8t Equipment 807,841 290,386 0 1,098,227 Infrastructure 1,376,910 1,980,641 0 3,357,551 Equipment Rental 2,291,737 0 17,218 2,274,519 Total accumulated depreciation 12,031,273 3,326,985 17,218 15,341,040 Total capital assets, being depreciated, net 52,895,130 12,742,529 132,685 65,504,974 Governmental activities capital assets net $ 63,636,754 $12,918,633 $2,506,576 $74,048,811 68 Beginning Ending Balance Balance Business-Type Activities 01/01/06 Increases Decreases 12/31/06 Capital assets, not being depreciated Land $ 92,238 $ 0 $ 0 $ 92,238 Construction in Progress 5,387,108 0 2,117,214 3,269,894 Total capital assets, not being depreciated 5,479,346 0 2,117,214 3,362,132 Capital assets, being depr. Source of Supply 326,976 0 0 326,976 Pumping Plants 8,593,671 0 0 8,593,671 Treatment Plants 32,803,036 4,516,027 0 37,319,063 Transmission, Distribution Ft Collection Lines (1) 62,297,483 10,404,637 0 72,702,120 General Plant Assets 3,205,470 3,500 0 3,208,970 West Pasco Water System 1,328,485 0 0 1,328,485 Plant Acquisition 700,961 0 0 700,961 Industrial Waste Water Plant 14,719,110 301,569 0 15,020,679 Storm Water 2,378,994 316,543 0 2,695,537 Irrigation (1) 16,489,655 1,126,750 0 17,616,405 Equipment Rental 1,460,379 198,909 0 1,659,288 Total Capital Assets Being Depreciated 144,304,220 16,867,935 0 161,172,155 Less accumulated depreciation (3) for: Source of Supply 216,720 6,540 0 223,260 Pumping Plants 2,742,846 359,220 0 3,102,066 Treatment Plants 11,871,590 1,531,809 0 13,403,399 Transmission, Distribution Et Collection Lines 12,282,943 1,426,854 0 13,709,797 General Plant Assets 1,396,616 195,290 0 115917906 West Pasco Water System 901,673 32,543 0 934,216 Plant Acquisition (2) 327015 23,365 0 350,480 Industrial Waste Water Plant 2,380,510 305,940 0 2,686,450 Storm Water 60,491 64,033 0 124,524 Irrigation (1) 397,030 357,634 0 754,664 Equipment Rental 532,582 264,019 0 796,601 Total accumulated depreciation (4) 337110016 41567,247 0 37,677,363 Total capital assets, being depreciated, net 111,194,104 12,300,688 0 123,494,792 Business-type activities capital assets, net $116,673,450 12,300,688 2,117,214 126,856,924 69 (1) - These assets are classified as Infrastructure. (2) - Plant Acquisition is accumulated amortization. (3) - Depreciation calculations were changed in 2006 so that all assets accumulate depreciation in the year purchased. (4) - This schedule includes $484,488 in prior year adjustments to depreciation amounts. Beginning balances were not adjusted in order to provide continuity between reports. Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General Government $ 367,784 Security of Persons Ft Property 174575 Physical Environment 25,605 Economic Environment 155,634 Transportation 179967382 Culture 8t Recreation 6017151 Judicial 5,854 Total Depreciation - Governmental Activities $ 3,326,985 Business-Type Activities Water/Sewer Utilities $ 4,567,247 Total Depreciation - Business-Type Activities $ 4,567,247 B. Construction Commitments The City has active construction projects as of December 31, 2006. The projects include Capital Improvement Fund projects, Arterial Street Fund projects, Street Overlay Fund projects, Water/Sewer Fund projects and LID Fund projects. At year-end the government's commitments with contractors are as follows: Project Spent to Date Remaining Commitment Stadium Shade Project $ 83,000 $ 917,000 Village/Casa Del Sol Parks Projects $ 482,805 $ 891195 1-182/Road 100 Interchange $ 254,595 $ 2,745,405 Lewis St/A St Connector $ 476,535 $ 123,465 Court St Widening - Rd 68 to Rd 84 $ 18,121 $ 781,879 70 2006 Overlays $ 777,205 $ 422,795 A Street Sewer Line Replacement $ 305,599 $ 94,401 2006 Sewer Lining $ 359,143 $ 140,857 2007 W Pasco Sewer Extension Phase 1 $ 3,719 $ 1,496,281 Burden/Rd 36 Pump Station $ 658,936 $ 41,064 LID 143 $ 4,313 $ 1,525,687 Wernett/Rd 38 LID 142 $ 683,677 $ 86,023 Only on-going projects with a total construction budget of $250,000 or more are listed above. NOTE 7. PENSION PLANS Substantially all City of Pasco full-time employees and qualifying part-time employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost sharing, multiple-employer public employee defined benefit and defined contribution retirement plans. The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes financial statements and required supplementary information for each plan. The DRS CAFR may be obtained from the Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA 98504-8380. The following disclosures are made pursuant to GASB Statement 27, Accounting for Pensions by State and Local Government Employers. A. Public Employees' Retirement System (PERS) Plans 1, 2 and 3 1. Plan Description PERS is a cost sharing multiple-employer retirement system comprised of three separate plans for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a combination defined benefit/defined contribution plan. Membership in the system includes: elected officials; state employees; employees of the Supreme, Appeals, and Superior courts (other than judges in a judicial retirement system); employees of legislative committees; community and technical colleges, college and university employees (not in national higher education retirement programs); judges of districts and municipal courts; and employees of local governments. PERS participants who joined the system by September 30, 1977, are Plan 1 members. Those who joined on or after October 1, 1977 and by either, February 28, 2002 for state and higher education employees, or August 31, 2002 for local government employees, are Plan 2 members unless they exercise an 71 option to transfer their membership to Plan 3. PERS participants joining the system on or after March 1, 2002 for state and higher education employees, or September 1, 2002 for local government employees have the option of choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days of employment. An employee is reported in Plan 2 until a choice is made. Employees who fail to choose within 90 days default to PERS Plan 3. PERS defined benefit retirement benefits are financed from a combination of investment earnings and employee and employer contributions. PERS retirement benefit provisions are established in state statute and may be amended only by the State Legislature. Plan 1 retirement benefits are vested after an employee completes five years of eligible service. Plan 1 members are eligible for retirement at any age after 30 years of service, or at age 60 with 5 years of service, or at age 55 with 25 years of service. The annual pension is two percent of the average final compensation per year of service, capped at 60 percent. The average final compensation is based on the greatest compensation during any 24 eligible consecutive compensation months. If qualified, after reaching age 66 a cost-of-living allowance is granted based on years of service credit and is capped at three percent annually. Plan 2 retirement benefits are vested after an employee completes five years of eligible service. Plan 2 members may retire at the age of 65 with five years of service, or at age 55 with 20 years of service, with an allowance of two percent per year of service of the average final compensation. The average final compensation is based on the greatest compensation during any eligible consecutive 60-month period. Plan 2 retirements prior to the age of 65 receive reduced benefits. If retirement is at age 55 or older with at least 30 years of service, a three percent per year reduction applies; otherwise an actuarial reduction will apply. There is no cap on years of service credit; and a cost-of-living allowance is granted (indexed to the Seattle Consumer Price Index), capped at three percent annually. Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component, and member contributions finance a defined contributions component. The defined benefit portion provides a benefit calculated at one percent of the average final compensation per year of service. The average final compensation is based on the greatest compensation during any eligible consecutive 60-month period. Plan 3 members become eligible for retirement if they have: at least ten years of service; or five years including twelve months that were earned after age 54; or five service credit years earned in PERS Plan 2 prior to June 1, 2003. Plan 3 retirements prior to the age of 65 receive reduced benefits. If retirement is at age 55 or older with at least 30 years of 72 service, a 3 percent per year reduction applies; otherwise an actuarial reduction will apply. There is no cap on years of service credit; and Plan 3 provides the same cost-of-living allowance as Plan 2. The defined contribution portion can be distributed in accordance with an option selected by the member, either as a lump sum or pursuant to other options authorized by the Employee Retirement Benefits Board. There are 1,181 participating employers in PERS. Membership in PERS consisted of the latest actuarial valuation data for the plans as of September 30, 2005: Retirees and Beneficiaries Receiving Benefits $ 68,609 Terminated Plan Members Entitled To But Not Yet Receiving Benefits 22,567 Active Plan Members Vested 104,574 Active Plan Members Non-vested 51 ,004 Total $ 246,754 2. Funding, Policy Each biennium, the State Pension Funding Council adopts Plan 1 employer contribution rates, Plan 2 employer and employee contribution rates, and Plan 3 employer contribution rates. Employee contribution rates for Plan 1 are established by statute at six percent and do not vary from year to year. The employer and employee contribution rates for Plan 2 and the Employer contribution rate for Plan 3 are developed by the Office of the State Actuary to continue to fully fund Plan 2 and the defined benefit portion of Plan 3. All employers are required to contribute at the level established by the Legislature. PERS Plan 3 defined contribution is a non-contributing plan for employers. Employees who participate in the defined contribution portion of PERS Plan 3 do not contribute to the defined benefit portion of PERS Plan 3. The Employee Retirement Benefits Board sets PERS Plan 3 employee contribution rates. Six rate options are available ranging from 5 to 15 percent; two of the options are graduated rates dependent on the employee's age. The methods used to determine the contribution requirements are established under state statute in accordance with chapters 41 .40 and 41 .45 RCW. The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31 , 2006, were as follows: 73 PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer* 3.69%** 3.69% 3.69%**** Employee 6.00%*** 3.50% ***** * The employer rates do not include the employer administrative expense fee currently set at 0.18%. ** The employer rate for state elected officials is 5.44%. *** The employee rate for state elected officials is 7.50%. **** Plan 3 defined benefit portion only. ***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member. Both the City and the employees made the required contribution. The City's required contributions for the years ended December 31, were: PERS Plan 1 PERS Plan 2 PERS Plan 3 2006 $19,131 $ 180,984 $ 35,058 2005 11 ,516 103,417 19,608 2004 8,044 67,605 9,447 B. Law Enforcement Officers and Fire Fighters (LEOFF) Plans 1 and 2 1 . Plan Description LEOFF is a cost sharing multiple employer retirement system comprised of two separate defined benefit plans. Membership in the system includes all full time, fully compensated, local law enforcement officers and firefighters. LEOFF is comprised solely of nonstate employees. LEOFF participants who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977 are Plan 2 members. Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established to provide governance of LEOFF Plan 2. The Board's duties include adopting contribution rates and recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan. Effective January 1, 2003 firefighter emergency medical technicians (EMTs) may transfer PERS Plan 1 or Plan 2 service credit to LEOFF Plan 2 if while employed for the City, the EMT's job was relocated to a fire department from another city, town, county or district. LEOFF defined benefits are financed from a combination of investment earnings, 74 employee and employer contributions, and a special funding situation in which the state pays the remainder through state legislative appropriations. LEOFF retirement benefit provisions are established in state statute and may be amended only by the State Legislature. Plan 1 retirement benefits are vested after an employee completes five years of eligible service. Plan 1 members are eligible for retirement with five years of service at age 50. The benefit per year of service calculated as a percent of final average salary is as follows: Term Of Service Percent Of Final Average 20 or more years 2.0% 10 but less than 20 years 1.5% 5 but less that 10 years 1.0% The final average salary is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 month's salary within the last 10 years of service. If membership was established in LEOFF after February 18, 1974, the service requirement benefit is capped at 60 percent of final average salary. A cost-of-living allowance is granted (indexed to the Seattle Consumer Price Index). Plan 2 Plan retirement benefits are vested after an employee completes five years of eligible service. Plan 2 members may retire at the age of 50 with 20 years of service, or at the age of 53 with five years of service, with an allowance of 2 percent of the final average salary per year of service. The final average salary is based on the highest consecutive 60 months. Plan 2 retirements prior to the age of 53 are reduced 3 percent for each year that the benefit commences prior to age 53. There is no cap on years of service credit; and a cost-of-living allowance is granted which is capped at 3 percent annually (indexed to the Seattle Consumer Price Index). There are 376 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the plans of September 30, 2005: 75 Retirees and Beneficiaries Receiving Benefits 8,723 Terminated Plan Members Entitled To But Not Yet Receiving Benefits 577 Active Plan Members Vested 12,348 Active Plan Members Non-vested 3,543 Total 25,191 2. Funding Policy Starting on July 1, 2000, Plan 1 employer and employee will contribute zero percent as long as the plan remains fully funded. Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plan. Plan 2 employers and employees are required to pay at the level adopted by the Department of Retirement Systems in accordance with 41.45 RCW. All employers are required to contribute at the level required by state law. The Legislature has the ability, by means of a special funding arrangement, to appropriated money from the state General Fund to supplement the current service liability and fund the prior service costs of Plan 1 and Plan 2 in accordance with the requirements of the Pension Funding Council. However, this special funding situation is not mandated by the state constitution and this funding requirement could be returned to the employers by a change of statute. The required contribution rates expressed as a percentage of current- year covered payroll, as of December 31, 2006 were as follows: LEOFF Plan 1 LEOFF Plan 2 Employer` 0.18% 4.90%** Employee 0.00% 7.85% State N/A 3.13% * The employer rates do not include the employer administrative expense fee currently set at 0.18%. **The employer rate for ports and universities is 8.03%. Both the City and the employees made the required contributions. The City required contributions for the year ended December 31, were as follows: 76 LEOFF Plan 1 LEOFF Plan 2 2006 $ 815 $351,698 2005 827 234,821 2004 926 173,524 The City does not have any employees enrolled in the Public Safety Employee's Retirement System (PSERS) Plan 2. C. Firemen's Pension The City administers a closed, small single-employer defined benefit plan called the Firemen's Pension Fund. The system is shown as a trust fund in the financial reports of the City. As of December 31, 2006, there were a total of 12 individuals covered by this system of which one is currently still employed and 11 were drawing benefits. The most recent actuarial study of the system was performed by EFI Actuaries to determine the funding requirements as of 09/30/05. As of this date, the market value (based on market quotes) of the plan assets was $3,920,949 and the present value of future benefits was $2,820,461 . The actuarial computation was performed using the entry age normal cost method. Under this method the projected benefits are allocated on a level basis as a percentage of salary over the earnings of each individual between entry age and assumed exit age. The actuarial accrued liability is amortized as a level dollar amount over a closed 30-year period beginning September 30, 2005. The actuarial assumptions used in this valuation are as follows: Investment Return - 6.25% per year net of investment and administrative expenses; Consumer Price Index Increases - 3 % per year; Salary Increases - 5% per year in each member's rank at retirement; Medical Cost Inflation - 5.75% per year; Pre-retirement decrements - No termination, death disablement, or mortality rates are assumed for active employees; Retirement - Active employees are assumed to retire at the later of age 50 or 25 years of service; Post retirement mortality - RP-2000 male and female mortality rates; and Family Composition - all members are assumed to be married with no children eligible for benefits. Wives are assumed to be three years younger than their husbands. Surviving spouses are assumed not to remarry. The following 10-year table of historical trend information shows the system's progress in accumulating sufficient assets to pay benefits when due: 77 Unfunded Unfunded Pension Benefit Net Assets Pension Annual as a Percentage Fiscal Available Percentage Benefit Covered of Covered Year For Benefit* Funded Obligation Payroll Payroll 2006 4,221,845 146.04% (1,330,872) 92,979 (1431.37%) 2005 3,946,652 139.93% (1,126,191) 70,376 (1600.25%) 2004 3,913,393 140.14% (1,120,979) 69,939 (1602.80%) 2003 3,774,259 138.54% (1 ,049,953) 72,770 (1442.84%) 2002 3,384,775 127.35% (726,915) 88,284 ( 823.38%) 2001 3,668,413 141 .47% (1,075,379) 69,173 (1554.62%) 2000 3,663,819 144.83% (1,134,030) 63,364 (1789.71%) 1999 3,467,025 140.47% (998,938) 61 ,989 (1611 .48%) 1998 3,335,667 146.87% (1,064,458) 86,668 (1228.20%) 1997 2,055,329 93.21% 149,729 87,036 172.03% * Began using market value in 1998. Previously used Book Value. ** Actuarial Study completed in 2005. The Fire Pension Fund has no Schedule of Contributions for 2006. The liabilities for future fund benefits are less than the market value of fund assets; consequently, no City contributions are required. Schedule of Funding Progress Unfunded Actuarial Actuarial Pension Valuation Value of Value of Benefit Percentage Date Assets Liabilities Obligation Funded 09/30/2005 $3,920,949 $2,820,461 ($1,100,488) 139.02% 12/31 /1999 $3,467,025 $2,468,087 ($ 998,938) 140.47% 12/31 /1984 $ 869,788 $1,501,537 $ 238,724 57.93% Following is the three-year historical data of Revenues and Expenditures. Fire Pension Historical Data 78 Revenues Expenditures Interest Fire Ins. Total Income Prem. Tax Revenues Pension Costs 2006 $200,080 341834 234,914 221,662 2005 153,567 32,104 185,671 124,948 2004 125,353 311445 156,798 125,255 NOTE 8. RISK MANAGEMENT The City maintains insurance against most normal hazards except for unemployment insurance and automobile collision where it has elected to become self-insured. For unemployment claims, the City is on a 100% reimbursable program with the State where the City pays all unemployment claims charged against it. The City is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW (self-insurance regulations) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-insuring, and / or jointly contracting for risk management services. WCIA has a total of 121 members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police professional, public officials' errors and omissions, stopgap, and employee benefits liability. Limits are $3 million per occurrence in the self insured layer, and $12 million per occurrence in the re-insured excess layer with no annual aggregate except $10 million per member for public official's errors and omissions. The excess layer is insured by the purchase of reinsurance and insurance. Total limits are $15 million per occurrence subject to aggregate sublimits in the excess layers. The Board of Directors determines the limits and terms of coverage annually. 79 Insurance coverage for property, automobile physical damage, fidelity bonds, inland marine, and boiler and machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical damage are self-funded from the member's deductible to $500,000, for all perils other than flood and earthquake, and insured above that amount by the purchase of reinsurance. In-house services include risk management consultation, loss control field services, claims and litigation administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and land use problems, insurance brokerage and lobbyist services. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall. An investment committee, using investment brokers, produces additional revenue by investment of WCIA's assets in financial instruments which comply with all State guidelines. These revenues directly offset portions of the membership's assessment. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day-to-day operations of WCIA. Fire and employee fidelity insurance is purchased through commercial insurance brokers. The City is self-insured for medical and dental coverage for its employees. A third party administrator, NCAS-Northwest, Inc, processes all claims for reimbursement. The third party administrator provides utilization management services and requires pre-authorization for all non-emergency hospital confinements. It is the City's policy to maintain at least four months of average monthly claims in cash reserves. To limit the exposure for large claims, the City purchases individual stop-loss coverage from a commercial insurance carrier that limits the City's exposure for claim losses to $50,000 per individual or $725,000 aggregate per year. NOTE 9. SHORT-TERM DEBT The City does not currently have any short-term debt issuances in either governmental or proprietary activities. 80 NOTE 10. LONG-TERM DEBT A. Long-Term Debt The City issues general obligations and revenue bonds to finance capital improvements such as bridges, streets, municipal buildings and enterprise facilities such as water and sewer utilities. Bonded indebtedness has also been entered into to advance refund general obligation and revenue bonds. General obligation bonds have been issued for both general government and business- type activities and are being repaid from the applicable resources. Proprietary fund revenues are used to repay revenue and refunding bonds. The City is also liable for notes that were entered into for the purchase of TRAC Facility, a fire truck and Animal Control facilities. These notes are considered obligations of the general government and are being repaid with general governmental revenue sources. The City also has outstanding notes for Special Assessments. These represent Interfund loans from the Water/Sewer Fund to the Special Assessment Funds. These assessments are for sewer lines and street improvements. General obligation bonds currently outstanding are as follows: Interest Maturity Original Bond Remaining Purpose Rate Date Amount Balance 1999 GOB Library Bond 4.50-5.50% 12/1 /2019 $ 1,700,000 $ 1,300,000 2001 CLID 135 Bond 5.75% 11/2012 536,975 190,000 2001 LTGO Bond 2.00-4.70% 12/1/2020 6,900,000 6,010,000 2002 LTGO Et 5.72% Refunding Bond 4/1 /2022 3,635,000 3,165,000 2002 UTGO Refunding 2.50-4.00% Bond 12/1/2013 3,155,000 2,290,000 Total $ 15,926,975 $ 12,955,000 The annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending Governmental Activities Business Type Activities December 31 Principal Interest Principal Interest 2007 $ 900,000 $ 543,441 0 0 2008 990,000 536,175 0 0 2009 1,020,000 4967585 0 0 2010 1,055,000 455,200 0 0 2011 1,085,000 410,877 0 0 2012-2016 4,480,000 1,387,605 0 0 2017-2021 3,240,000 445,032 0 0 81 2022-2026 185,000 4,348 0 0 Total $12,955,000 $ 4,279,263 0 0 The revenue bonds currently outstanding are as follows: Original Remaining Interest Maturity Bond Balance Purpose Rate Date Amount 1998 Water/Sewer Series A Bonds 5.50-6.45% 6/1/2018 $ 2,255,000 $ 1,615,000 1998 Water/Sewer Series B Bonds 3.80-4.60% 6/1/2014 6,725,000 5,270,000 1998 Water/Sewer Series C Bonds 3.70-4.80% 6/1/2014 1,515,000 515,000 1999 Water/Sewer Bonds 4.10-5.80% 9/1/2016 985,000 635,000 2001 Water/Sewer Bonds 3.50-4.85% 9/1/2016 995,000 7351000 2002 Water/Sewer Bonds 2.00-4.70% 12/1/2022 5,945,000 5,065,000 2005 Water/Sewer Bonds 3.50-4.25% 12/5/2025 41400,000 4,210,000 Total $ 22,815,000 $ 18,045,000 Revenue bond debt service requirements to maturity are as follows: Year Ending December 31 Principal Interest 2007 $ 1,2701000 $ 779,006 2008 1,325,000 725,746 2009 1,355,000 670,068 2010 1,410,000 611,125 2011 1,455,000 549,035 2012-2016 6,205,000 1,828,088 2017-2021 3,440,000 769,647 2022-2026 1,585,000 144,268 Total $ 18,045,000 $ 6,076,983 Loan and Note obligations currently outstanding are as follows: 82 Original Interest Maturity Bond Remaining Purpose Rate Date Amount Balance State LOCAL Loan - Fire Truck 5.72% 6/1/2009 $ 225,000 $ 80,832 State LOCAL Loan - Animal Control 6.24% 12/1/2016 275,500 211,565 State LOCAL Loan - Patrol 3.18777% 12/1/2016 161,640 83,266 TRAC Loan 4.50- 5.50% 12/1/2014 1,197,931 672,414 Port of Pasco Airport Fire Building 4.00% 7/12/2016 120,000 115,898 PWTF Loan #89036 - Water Tank 3.00% 7/24/2009 1,245,000 184,682 State Revolving Loan 1.00% 10/31/2015 23,700,000 17,856,043 PWTF Loan #95025 - Sewer Plant 1.00% 6/30/2015 812,700 387,102 PWTF Loan #95026 - Water Reservoir 1.00% 6/30/2015 2,687,300 966,378 PWTF Loan #691043 1.00% 6/30/2020 1,890,000 1,555,966 LID 125 Note 6.00% 12/2007 80,960 20,000 LID 138 Note 5.00% 12/2015 57,662 25,700 LID 139 Note 5.00% 12/2017 405,375 4,400 LID 140 Note 4.50% 12/2018 71,943 7,600 LID 901 Note 4.00% 12/2012 45,700 6,050 Total $ 32,976,714 $ 22,177,896_ Loan and Note debt service requirements to maturity are as follows: Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest 2007 $ 228,924 $ 54,522 $ 1,427,663 $ 6481168 2008 175,672 441242 1,466,662 605,324 2009 135,415 37,183 1,507,037 561,102 2010 111,412 31,407 1,487,276 515,454 2011 121,276 26,450 1,530,553 469,563 2012-2016 455,026 50,643 8,206,935 1,604,028 83 2017-2021 0 0 5,324,046 315,951 2022-2026 0 0 0 0 Total $ 1,227,725 $ 244,447 $ 20,950,172 $ 4,719,590 In proprietary funds, unamortized debt issue costs are recorded as deferred charges and bonds are displayed net of premium or discount; annual interest expense is decreased by amortization of debt premium and increased by the amortization of debt issue costs and discount. At December 31, 2006, the City has $258,431 available in the debt service funds to service the general bonded debt, which is not unusual because the major portion of debt service is paid out towards the end of the year. Restricted assets in proprietary funds contain $644,178 in sinking funds and reserves as required by bond indentures. B. Refunded Debt The City did not issue any refunded debt during 2006. NOTE 11. LEASES The City does not currently have any capital or operating leases. NOTE 12. CHANGES IN LONG-TERM LIABILITIES During the year ended December 31, 2006, the following changes occurred in long-term liabilities: Beginning Ending Balance Balance Due Within 01 /01/06 Additions Reductions 12/31/06 One Year Governmental Activities: Bonds Payable: General obligation bonds, special assessment debt with govt. commitment $13,925,000 $ 0 $ 970,000 $12,955,000 $ 970,000 Loans and Notes 1,294,481 120,000 186,756 1,227,725 228,924 Compensated Absences 1,374,095 53,797 0 1,427,892 1,427,892 Governmental Activity Long-Term Liabilities $16,593,576 $173,797 $1,156,756 $15,610,617 $2,626,816 84 Beginning Ending Balance Balance Due Within 01/01/06 Additions Reductions 12/31/06 One Year Business-Type Activities: Bonds Payable: General obligation bonds, revenue bonds $19,300,000 $ 0 $1,255,000 $18,045,000 $1,270,000 Loans and Notes 22,340,167 0 1,389,996 20,9501171 1,427,663 Compensated Absences 155,637 4,237 0 159,874 159,874 Business-Type Activity Long-Term Liabilities $41,795,804 $ 4,237 $2,644,996 $39,155,045 $2,857,537 Internal Service funds are separate for governmental and proprietary activities. Long-term liabilities for them are included as part of the above totals under their respective activity. Compensated absences are included in the above amounts. Also, for the governmental activities, claims and judgments and compensated absences are generally liquidated by the general fund. NOTE 13. CONTINGENCIES AND LITIGATION The City has recorded in its financial statements all material liabilities, including applicable estimates for situations that are not yet resolved but where, based on available information, management believes it is probable that the City will have to make payment. In the opinion of management, the City's insurance policies and self-insurance reserves are adequate to pay all known or pending claims. As discussed in Note 10, the City is contingently liable for repayment of refunded debt. The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantor or representative. Such audits could result in the grantor disallowing expenditures under the terms of the grants. However, City management believes that such disallowances, if any, would be immaterial. NOTE 14. RESTRICTED NET ASSETS The government-wide statement of net assets reports $7,536,213 of restricted net assets, of which $6,478,513 is restricted by enabling legislation. 85 NOTE 15. INTERFUND BALANCES AND TRANSFERS A. Classification of Interfund Transactions Interfund transactions are classified as follows: 1. Transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. 2. Transfers to support the operations of other funds are recorded as "Transfers" and classified with "Other Financing Sources or Uses." 3. Contributions to the capital of enterprise or internal service funds, (transfers between those funds and the general fixed assets account group) transfers to establish or reduce working capital in other funds, and transfers of remaining balances when funds are closed, are classified as "Transfers" and are reported as direct additions to or deductions from net assets. 4. Loans between funds are classified as Interfund loans receivable and payable or as advances to and from other funds on the fund balance sheets depending on the time period for which the loan was made. Interfund loans do not affect total fund equity, but advances to other funds are offset by a reservation of fund equity. A. Interfund Balances Interfund balances at December 31, 2006 were as follows: Due From All Other Purpose Funds Total General Fund Start-up loans for new funds &t neg. cash balance loans $1,875,403 $1,875,403 Water/Sewer Fund LID loans &t Equip Rental Op 1,057,700 1,057,700 All Other Funds LID and Capital Imp. loans 227,208 227,208 Total $3,160,311 $3,160,311 B. Interfund Transfers Interfund transfers at December 31, 2006 were as follows: 86 Transfer From C General Water/Sewer All Other L Fund Fund Funds Total General Fund $ 0 $ 0 $ 80,680 $ 80,680 C Water/Sewer Fund 0 0 306,036 306,036 All Other Funds 3,574,000 430,000 1,749,398 5,753,398 Total 1 $3,574,000, $430,000, $2,136,114 $6,140,114 Interfund transfers are used to fund ongoing operations such as ambulance services, senior center activities, recreation activities, street repair and maintenance, and transfers between Local Improvement District funds and the Water/Sewer Fund. NOTE 16. RECEIVABLE AND PAYABLES BALANCES A. Receivables Receivables at December 31, 2006 were as follows: ACCOUNTS: AMOUNTS Governmental Activities: Taxes $2,679,017 Customer Accounts 5,858,018 Interest Receivable 106,142 Other Receivables 523,120 Total Governmental Activities $9,166,297 Business-type Activities: Utility Receivables $ 783,410 Other Receivables 254,311 Interfund Loan Receivable 1,098,858 Interest Receivable 68,022 Total Business-type Activities: $21204,601 Special Assessment receivables represent $3,318,467 of the balance of outstanding Customer Accounts receivable at year end December 31, 2006. Of this amount $68,252 represents delinquent Special Assessments receivable. B. PAYABLES Payables at December 31, 2006, were as follows: ACCOUNTS: AMOUNTS Governmental Activities: Accounts Payable $ 896,654 Interfund Loans Payable 1,057,700 87 Due to Other Govt. Units 10,119 Deposits Payable 292,850 Unclaimed Property 21391 Other Payables 223,294 Claims Incurred Not Reported 125,000 Deferred Revenue 4,117,140 Due within One Year 2,505,189 Due in More than One Year 13,041,679 Total Governmental Activities $22,272,016 Business-type Activities: Accounts Payable $ 451,263 Due to Other Govt. Units 30,800 Retainage Payable 463,839 Interfund Loans Payable 711158 Interest Payable 87,683 Deposits Payable 55,429 Deferred Revenue 751,810 Unamortized Discount (8,824) Unclaimed Property 17,573 Due within One Year 2,857,537 Due in More than One Year 36,297,508 Total Business-type Activities: $41,075,776 NOTE 17. SEGMENT INFORMATION The City's only Enterprise Fund is the Water/Sewer Fund. The services provided by this fund are water, sewer, process water reuse, storm water and irrigation operations. These services are not broken out into separate segments but are reported as one fund in the fund statements. NOTE 18. JOINT VENTURES A. Bi-County Police Information Network The Bi-County Police Information Network (BI-PIN) was established November 24, 1982, when an Interlocal Agreement was entered into by five participating municipal corporations, the cities of Kennewick, Pasco, and Richland, and Benton and Franklin Counties. BI-PIN was established to assist the participating police and sheriff's departments in the deterrence and solution of criminal incidents. BI-PIN is served by an Executive Committee composed of the City Manager of each of the cities and a member from each of the Boards of County Commissioners of Benton and Franklin Counties. A liaison from the Bi-County Chiefs and Sheriffs is an ex officio, non-voting member. 88 The allocation of financial participation among the participating jurisdictions is based upon the approved budget for that year and is billed quarterly in advance to each agency. On dissolution of the Interlocal Agreement, the net assets will be shared based upon participant contribution. Effective January 1, 1992, the City of Kennewick assumed responsibility for the operation of the BI-PIN system. As the Operating Jurisdiction, the City provides all necessary support services for the operation of BI-PIN such as accounting, legal services, risk management and information systems. The total amount paid by BI-PIN in 2006 for these transactions was $488,152. The City of Pasco's equity interest in BI-PIN was $298,324 on December 31, 2006, which is reported as an asset in the government-wide statement of net assets. The change in equity is reflected in the government-wide statement of activities under Public Safety. The City does not anticipate any income distribution from BI-PIN since charges are assessed only to recover anticipated expenses. Complete separate financial statements for BI-PIN may be obtained at the City of Kennewick, 210 West Sixth Avenue, Kennewick, Washington. B. Emergency Medical Services The Emergency Medical Services (EMS) was established May 17, 1993, when an Interlocal Agreement was entered into by three participating municipal corporations, the cities of Kennewick, Pasco and Richland. EMS was established to provide administrative services for a Medical Program Director to assure training, certification, and physician medical control of emergency medical service personnel of the three cities. An Administrative Board, comprised of City Managers from the participating cities, serves EMS. All members of the Administrative Board will vote and participate in the overseeing of policies and contracts. The Medical Program Director and President of EMS Council shall serve as representatives to the Administrative Board in a non-voting capacity. The financial participation among the participating jurisdictions is based upon the number of certified EMS personnel employed by the jurisdiction or agency. On dissolution of the Interlocal Agreement, the net assets will be distributed as equally as possible, as determined by the Administrative Board. Effective August 2, 1993, the City of Kennewick assumed responsibility as the Operating Jurisdiction for EMS via a Coordinating Agreement. The Operating Jurisdiction provides all necessary support services for the operation of EMS such as accounting, legal services and risk management. 89 The City of Pasco's equity interest in EMS was $14,339 on December 31, 2006, which is reported as an asset in the government-wide statement of net assets. The change in equity is reflected in the government-wide statement of activities under Public Safety. The City does not anticipate any income distribution from EMS since charges are assessed only to recover anticipated expenses. Complete separate financial statements for EMS may be obtained at the City of Kennewick, 210 West Sixth Avenue, Kennewick, Washington. C. Metro Drug Forfeiture Fund The Metropolitan Controlled Substance Enforcement Group (Metro) was established prior to 1987, when six participating municipal corporations entered into an Interlocal Agreement. These entities include the cities of Kennewick, Pasco, Richland, and West Richland, and Benton and Franklin Counties. Metro was established to account for the proceeds of forfeitures, federal grants, and court ordered contributions, and to facilitate the disbursement of those proceeds for the purpose of drug enforcement and investigations. Metro is served by an Executive Committee composed of the City Manager, or designee, of each of the cities and a member from each of the Boards of County Commissioners of Benton and Franklin Counties. In addition, a Governing Board, consisting of the Police Chiefs from each of the cities and the Sheriffs and Prosecuting Attorneys from the two counties, administers daily activity. Effective January 1, 1990, the City of Pasco assumed responsibility for the operation of Metro. As the Operating Jurisdiction, the City provides all necessary support services for the operation of Metro such as accounting, legal services and risk management. The City of Pasco's equity interest in Metro was $21,844 on June 30, 2006, which is reported as an asset in the government-wide statement of net assets. The change in equity is reflected in the government-wide statement of activities under Public Safety. The City does not anticipate any income distribution from Metro since charges are assessed only to recover anticipated expenses. Complete separate financial statements for Metro may be obtained at the City of Pasco, 525 North Third Street, Pasco, Washington. D. Trade, Recreation, Agricultural Center In 1994 the City entered into an agreement with Franklin County for the Trade, Recreation, and Agricultural Center (TRAC). The City shares with 90 Franklin County the expenses to operate and cover debt service. Franklin County handles all operating decisions and financial reporting for TRAC. Complete financial statements for TRAC may be obtained at Franklin County, 1016 N. 4t" Avenue, Pasco, Washington. For calendar year 2006, the City paid Franklin County $208,550 in operating expenses and $105,007 in debt service expenses. The City's obligation for debt service is included in the debt service schedule in Note 10. NOTE 19. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS A. Postemployment Benefits In addition to the pension benefits described in Note 7, the City provides postemployment health care benefits, in accordance with RCW 41 .26.150 to 45 employees who meet LEOFF 1 eligibility requirements. Currently, 38 retirees meet those eligibility requirements. The city reimburses 100% of the amount of validated claims for medical, prescription, and hospitalization costs incurred by pre-Medicare retirees. Employer contributions are financed on pay-as-you-go basis. Expenditures for postemployment health care benefits are recognized as retirees report claims and include a provision for estimated claims incurred but not yet reported to the City. During the year, expenditures of $272,962 were recognized for postemployment health care. B. Postemployment Benefit (OPEB) Plans The City does not have any OPEB plans other than those listed above. NOTE 20. CLOSURE AND POSTCLOSURE CARE COSTS The City does not own a landfill but it does have a Landfill Remediation Fund. The purpose of this fund is to provide Pasco with the means fund liability and or/pay expenses related to third party claims asserted against Pasco with respect to the implementation and enforcement of the Institutional Controls Program. NOTE 21. OTHER DISCLOSURES 91 A. Prior Period Adiustments Prior period adjustments consist of the following: Adjustments to reconcile accounts receivable to the financial system and interest receivable : General Fund - $14,613; City Street Fund - $810; Arterial Street Fund - $3,563; Street Overlay Fund - $7,020; MLK Community Center - $41 ; Ambulance Fund - $4,437; Contingency Fund - $685; Cemetery Fund - $225; Athletic Fund - $317; Senior Center - $19; Multi-Modal Facility - $25; Bi-Centennial Fund - $25; Rivershore Trail Fund - $104; Special Lodging Fund - $65; Litter Abatement Fund - $26; Revolving Abatement Fund - $865; TRAC Fund - $763; Park Fund - $9,501; Capital Improvement Fund - $15,148; Industrial Development Et Infrastructure Fund - $4,287; Stadium Fund - $599; Sun Willows Development Fund - $2,253; Library/Fire Station Bond Fund - $660; 2002 UTGO Bond Fund - $1,557; LID Guaranty Fund - $5,611; LID Construction Fund - $2,344; Cemetery Perpetual Care Fund - $1,464; Cemetery Pre-Need Fund - $147; Landfill Remediation Fund - $502; Blvd. Perpetual Maintenance Fund - $4,521; Water/Sewer Fund - $80,452; Equipment Rental Operations Gov - $197; Equipment Rental Operations Enterprise - $277; Equipment Rental Replacement Govt. - $5,632; Equipment Rental Replacement Enterprise - $6,381; Central Stores - $6; Fire Pension Fund - $2,575; Medical/Dental Fund - $1,338 and LID Funds- $8,771. Adjustments were made in Equipment Rental Replacement Fund Govt - $297,032 and in Equipment Rental Replacement Fund Enterprise - $157,227 to account for changes in asset inventory prior to 2006. An adjustment of $716,079 was made to the Water/Sewer Fund to account for donated capital assets not previously recorded and to adjust depreciation to reflect change to depreciating asset in the year purchased. A transfer of $15,400 was made from the Park Fund to the Blvd. Perpetual Maintenance Fund for work performed in 2005. A prior year adjustment of interest in the amount of $24,550 was also made from the Blvd. Perpetual Maintenance Fund to the General Fund. An adjustment of $78,075 for rehab loans was made to the Community Development Block Grant Fund. An adjustment of $83,692 was made in LID Assessments to reflect the adjustment of total assessments receivable for actual costs. Additional adjustments were made in the General Fund for prior year corrections, they consist of; ($19,439) for a payment to Franklin County Treasurer; $143,921 adjustment for LTGO Bond payments from the Stadium 92 Fund; $43,728 transfer from Athletic Fund; and ($15,000) adjustment for prior years for youth soccer revenues. An adjustment was made to the City Street Fund for $10,756 to reverse 2005 water/sewer taxes receivable. A payment of $19,817 was made to a contractor for prior period in the Arterial Street Fund. Refunds from prior year's revenues were made for QWEST occupational utility taxes in the amounts of $927 from Library/Fire Station Bond Fund and $2,551 from the 2002 UTGO Bond Fund. B. Subsequent Events None. C. Related Organization Pursuant to RCW 35.57 (the "City PFD Act") the Pasco Public Facilities District was formed and created by Ordinance No. 3558 on July 15, 2002, coextensive with the boundaries of the City, with the powers and authority set forth in the City PFD Act. The District is established for the purpose of acquiring, constructing, owning, remodeling, maintaining, equipping, re- equipping, repairing, financing, operating one or more Regional Centers, as defined by the RCW 35.57.020 and/or participating with any other qualified public facilities district in a cooperative and joint development of a Regional Center in the Tri-Cities area by interlocal agreement. The members of the board of directors of the District (the "PFD Board") shall be selected and appointed by the Council, as required by the RCW. The PFD Board consisted of five members. Three of the members will be appointed based on recommendations from local organizations. The members will serve four-year terms. Of the initial members, one will be appointed for a one year term, one for a two year term, one for a three year term, and the remainder for four year terms. The Council may, by resolution, remove a member for any reason. Vacancies will be filled by appointment by the Council. All corporate powers of the District will be exercised by or under the authority of the PFD Board; and the business, property and affairs of the District shall be managed under the direction of the PFD Board, except as may be otherwise provided for by law herein, or in the Charter. 93 City of Pasco Combining Balance Sheet Other Governmental Funds December 31,2006 Special Revenue Funds 110 125 130 140 City Street 1-182 Impact Street Overlay Comm. Dev. Fund Fund Fund Block Grant ASSETS Current Cash&Cash Equivalents $ 94,176 $ 439,000 $ 1,374,537 $ 44,304 Receivables(net of allowances) Taxes 14,387 - 57,669 - Customer Accounts 18,866 - - 224,086 InterFund Loans Receivable - - - - Interest Receivable 153 1,128 6,610 - Other Receivables 178,017 - - - Restricted Assets - - - - TOTAL ASSETS $ 305,599 $ 440,128 $ 1,438,816 $ 268,390 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 49,358 $ - $ 170 $ 5,430 Matured Bonds - - - - Interfund Loans Payable - - - 120,000 Due to Other Governmental Units - - - - Bonds, Notes, Loans Payable - - - - Interest Payable - - - - Deferred Revenue - - - - Other - - 2,940 5,000 Total Liabilities $ 49,358 $ - $ 3,110 $ 130,430 Fund Balances Reserved for: Advances to Other Funds $ - $ - $ - $ - Debt Service - - - - Capital Improvements - - - - Other Reserves - - - - Unreserved, Reported in: Special Revenue Funds $ 256,241 $ 440,128 $ 1,435,706 $ 137,960 Debt Service Funds - - - - Capital Project Funds - - - - Total Fund Balances $ 256,241 $ 440,128 $ 1,435,706 $ 137,960 TOTAL LIABILITIES AND FUND BALANCES $ 305,599 $ 440,128 $ 1,438,816 $ 268,390 See accompanying notes to the basic financial statements. 94 Special Revenue Funds 145 150 155 160 165 MILK Comm. Ambulance Contingency Cemetery Athletic Center Fund Fund Fund Fund $ 15,348 $ 175,352 $ 150,729 $ 40,088 $ 55,693 596,451 - 18,488 - 740 328 247 - - 30 $ 15,348 $ 771,803 $ 151,469 $ 58,904 $ 55,970 $ 5,995 $ 3,802 $ - $ 5,420 $ 2,168 500,000 - 180,000 - - - 2,691 - $ 5,995 $ 503,802 $ - $ 188,111 $ 2,168 $ 9,353 $ 268,001 $ 151,469 $ (129,207) $ 53,802 $ 9,353 $ 268,001 $ 151,469 $ (129,207) $ 53,802 $ 15,348 $ 771,803 $ 151,469 $ 58,904 $ 55,970 Continued on next page 95 City of Pasco Combining Balance Sheet Other Governmental Funds December 31,2006 Special Revenue Funds 170 180 181 185 Senior Multi-Modal Bi-Centenial Rivershore Trail Center Facility Fund Fund ASSETS Current Cash&Cash Equivalents $ 14,048 $ 9,015 $ 5,463 $ 15,120 Receivables(net of allowances) Taxes - - - - Customer Accounts 5,088 1,219 - 4,838 Interfund Loans Receivable - - - - Interest Receivable - 42 27 72 Other Receivables - - - Restricted Assets - - - - TOTAL ASSETS $ 19,136 $ 10,276 $ 5,490 $ 20,030 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 12,898 $ 6,504 $ - $ 448 Matured Bonds - - - - Interfund Loans Payable - - - - Due to Other Governmental Units 125 530 - (260) Bonds, Notes, Loans Payable - - - - Interest Payable - - - - Deferred Revenue 1,453 (500) - - Other 750 2,400 - - Total Liabilities $ 15,226 $ 8,934 $ - $ 188 Fund Balances Reserved for: Advances to Other Funds $ - $ - $ - $ - Debt Service - - - - Capital Improvements - - - - Other Reserves - - - - Unreserved, Reported in: Special Revenue Funds $ 3,910 $ 1,342 $ 5,490 $ 19,842 Debt Service Funds - - - - Capital Project Funds - - - - Total Fund Balances $ 3,910 $ 1,342 $ 5,490 $ 19,842 TOTAL LIABILITIES AND FUND BALANCES $ 19,136 $ 10,276 $ 5,490 $ 20,030 See accompanying notes to the basic financial statements. 96 Special Revenue Funds 188 189 190 191 192 193 Spec Assess Litter Revolving TRAC Dev. & Park Capital Lodging Fund Abatement Abatement Operating Fund Fund Improvement 731 $ 357 $ 258,037 $ 10,574 $ 1,435,361 $ 2,958,971 4,923 8,885 - - - 3 - 1,240 - 10,310 14,454 22,659 1,207 - 22,762 - 122,792 $ 23,393 $ 6,487 $ 268,162 $ 33,336 $ 1,445,671 $ 3,096,217 $ 22,659 $ 2,219 $ 816 $ - $ - $ - $ 22,659 $ 2,219 $ 816 - - - - 1,732,618 - $ 734 $ 4,268 $ 267,346 $ 33,336 $ (286,947) $ 3,096,217 $ 734 $ 4,268 $ 267,346 $ 33,336 $ 1,445,671 $ 3,096,217 $ 23,393 $ 6,487 $ 268,162 $ 33,336 $ 1,445,671 $ 3,096,217 Continued on next page 97 City of Pasco Combining Balance Sheet Other Governmental Funds December 31,2006 Special Revenue Funds 194 195 196 Indust. Devel. Stadiurr✓ Sun Willows &Infrastructure Conv.Center Development Total ASSETS Current Cash&Cash Equivalents $ 550,991 $ - $ - $ 7,647,895 Receivables(net of allowances) Taxes - - - 72,056 Customer Accounts - - - 882,844 Interfund Loans Receivable - - - - Interest Receivable 3,075 - - 38,429 Other Receivables - 105,762 - 453,229 Restricted Assets - - - - TOTAL ASSETS $ 554,066 $ 105,762 $ - $ 9,094,453 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 156,385 $ 393 $ - $ 274,665 Matured Bonds - - - - Interfund Loans Payable - 121,235 - 921,235 Due to Other Governmental Units - 5,704 - 8,790 Bonds, Notes,Loans Payable - - - - Interest Payable - - - - Deferred Revenue - - - 953 Other - 920 - 12,010 Total Liabilities $ 156,385 $ 128,252 $ - $ 1,217,653 Fund Balances Reserved for: Advances to Other Funds $ - $ - $ - $ - Debt Service - - - - Capital Improvements - - - - Other Reserves - - - 1,732,618 Unreserved, Reported in: Special Revenue Funds $ 397,681 $ (22,490) $ - $ 6,144,182 Debt Service Funds - - - - Capital Project Funds - - - - Total Fund Balances $ 397,681 $ (22,490) $ - $ 7,876,800 TOTAL LIABILITIES AND FUND BALANCES $ 554,066 $ 105,762 $ - $ 9,094,453 See accompanying notes to the basic financial statements. 98 Debt Service Funds 272 273 625 709-797 Library/Fire 2002 UTGO LID LID Station Bonds Bonds Guaranty Funds Total $ 79,595 $ 178,835 $ 1,579,561 $ 1,267,093 $ 3,105,084 11,613 27,768 - - 39,381 - - - 3,318,467 3,318,467 722 1,691 6,088 8,595 17,096 $ 91,930 $ 208,294 $ 1,585,649 $ 4,594,155 $ 6,480,028 - - - 63,750 63,750 - - 190,000 190,000 - - - 3,067,994 3,067,994 3,321,744 $ 3,321,744 69,018 - 1,146,215 1,272,411 2,487,644 22,912.00 208,294.00 439,434 - 670,640 $ 91,930 $ 208,294 $ 1,585,649 $ 1,272,411 $ 3,158,284 $ 91,930 $ 208,294 $ 1,585,649 $ 4,594,155 $ 6,480,028 Continued on next page 99 City of Pasco Combining Balance Sheet Other Governmental Funds December 31, 2006 Capital Project Funds Capital Project 700 Construction LID Fund Construction Total ASSETS Current Cash &Cash Equivalents $ 164,611 $ - $ 164,611 Receivables (net of allowances) Taxes - - - Customer Accounts - - - Interfund Loans Receivable - - - Interest Receivable - - - Other Receivables - - - Restricted Assets - - - TOTAL ASSETS $ 164,611 $ - $ 164,611 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 48,545 $ - $ 48,545 Matured Bonds - - - Interfund Loans Payable - 1,219,168 1,219,168 Due to Other Governmental Units - - - Bonds, Notes, Loans Payable - - - Interest Payable - - - Deferred Revenue - - - Other 23,231 32,008 55,239 Total Liabilities $ 71,776 $ 1,251,176 $ 1,322,952 Fund Balances Reserved for: Advances to Other Funds $ - $ - $ - Debt Service - - - Capital Improvements - - - Other Reserves - - - Unreserved, Reported in: Special Revenue Funds $ - $ - $ - Debt Service Funds - - - Capital Project Funds 92,835 (1,251,176) (1,158,341) Total Fund Balances $ 92,835 $ (1,251,176) $ (1,158,341) TOTAL LIABILITIES AND FUND BALANCES $ 164,611 $ - $ 164,611 See accompanying notes to the basic financial statements. 100 Permanent Funds 605 606 610 621 Cemetery Cemetery Blvd. Perpetual Landfill Perpetual Care Pre-Need Fund Maint. Fund Remediation Total $ 317,194 $ 41,691 $ 1,113,955 $ 112,105 $ 1,584,945 1,230 8,176 - - 9,406 1,615 204 5,600 552 7,971 $ 320,039 $ 50,071 $ 1,119,555 $ 112,657 $ 1,602,322 - - - 100,000 100,000 $ - $ - $ - $ 100,000 $ 100,000 320,039 50,071 1,119,555 12,657 1,502,322 $ 320,039 $ 50,071 $ 1,119,555 $ 12,657 $ 1,502,322 $ 320,039 $ 50,071 $ 1,119,555 $ 112,657 $ 1,602,322 Continued on next page 101 City of Pasco Combining Balance Sheet Other Governmental Funds December 31, 2006 2006 2005 Total Other Total Other Governmental Governmental Funds Funds ASSETS Current Cash & Cash Equivalents $ 12,502,535 $ 12,368,123 Receivables (net of allowances) Taxes 111,437 107,542 Customer Accounts 4,210,717 3,212,462 Interfund Loans Receivable - - Interest Receivable 63,496 206,226 Other Receivables 453,229 262,736 Restricted Assets - - TOTAL ASSETS $ 17,341,414 $ 16,157,089 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 323,210 $ 500,155 Matured Bonds - 10,000 Interfund Loans Payable 2,204,153 1,344,775 Due to Other Governmental Units 8,790 8,566 Bonds, Notes, Loans Payable 190,000 275,000 Interest Payable - - Deferred Revenue 3,068,947 2,085,667 Other 167,249 154,253 Total Liabilities $ 5,962,349 $ 4,378,416 Fund Balances Reserved for: Advances to Other Funds $ - $ - Debt Service 2,487,644 2,662,865 Capital Improvements - - Other Reserves 3,234,940 3,055,950 Unreserved, Reported in: Special Revenue Funds $ 6,144,182 $ 6,218,067 Debt Service Funds 670,640 281,474 Capital Project Funds (1 ,158,341 (439,683) Total Fund Balances $ 11 ,379,065 $ 11,778,673 TOTAL LIABILITIES AND FUND BALANCES $ 17,341,414 $ 16,157,089 See accompanying notes to the basic financial statements. 102 Qty of Pasco Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2006 Special Revenue Funds 110 125 130 140 145 City Street 1-182 Impact Street Overlay Comm.Dev. MLK Comm. REVENUES Fund Fund Fund Block Gant Center Taxes $ 177,675 $ - $ 712,214 $ - $ - Licenses&Permits 203,626 - - - - Intergovermental Revenue 741,450 - 645,115 - Charges for Services - - - 2,853 Fines&Forfeitures - - - - - Investment Income 1,476 - 65,423 - 29,533 Msoellaneous Revenue 18,826 440,128 - 101,438 (444) Total Revenues $ 1,143,053 $ 440,128 $ 777,637 $ 746,553 $ 31,942 EXPENDITURES Current: General Government $ - $ - $ $ - $ - Judidal - - - Public Safety - 62,325 - Physical Environment - - - - Transportation 1,063,815 - - - Health and Human Se\Aces - - - Economic Environment - 106,936 - Culture and Recreation - - - 138,668 Capital Outlay 166,494 - 882,498 366,176 - Debt Se\Ace Principal - - - - - Interest - - - - - Total Expenditures $ 1,230,309 $ - $ 882,498 $ 535,437 $ 138,668 Excess of Revenues Over(Under)Expenditures $ (87,256) $ 440,128 $ (104,861) $ 211,116 $ (106,726) OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets $ $ - $ $ - $ - Proceeds of General L-T Debt - - - Insurance Recoveries 109 - - - - Operating Transfers-(In) 280,000 - - - 113,500 Operating Transfers-(Out) - - - (104,000) - Total Other Financing Sources(Uses) $ 280,109 $ - $ - $ (104,000) $ 113,500 Net Change in Fund Balances $ 192,853 $ 440,128 $ (104,861) $ 107,116 $ 6,774 Nor Year Adjustments $ (9,948) $ - $ (7,020) $ (78,075) $ (41) Fund Balance Beginning $ 73,336 $ - $ 1,547,587 $ 108,919 $ 2,620 Fund Balance,Ending $ 256,241 $ 440,128 $ 1,435,706 $ 137,960 $ 9,353 See accompanying notes to the basic financial statements. 103 Special Revenue Funds 150 155 160 165 170 180 181 Ambulance Contingency Cemetery Athletic Senior Multi-Modal Bi-Centenial Fund Fund Fund Fund Center Facility Fund 1,463 - - - 23,407 - - 859,240 - 195,059 83,086 - - - (9,311) 5,811 4,373 2,702 (749) 303 211 450 - 7 440 56,757 51,951 - $ 851,842 $ 5,811 $ 199,439 $ 86,228 $ 79,415 $ 52,254 $ 211 1,932,197 - - - - - - - - 188,146 - - - - - 55,469 - - - - 34,574 - - - - - 58,369 231,034 - - 60,199 - - - - - - - 9,709 - - - - $ 1,992,396 $ - $ 197,855 $ 58,369 $ 265,608 $ 55,469 $ - $ (1,140,554) $ 5,811 $ 1,584 $ 27,859 $ (186,193) $ (3,215) $ 211 1,280,399 - 64,040 - 200,998 7,500 - $ 1,280,399 $ - $ 64,040 $ - $ 200,998 $ 7,500 $ - $ 139,845 $ 5,811 $ 65,624 $ 27,859 $ 14,805 $ 4,285 $ 211 $ 4,437 $ (685) $ 225 $ (44,069) $ 19 $ (25) $ (25) $ 123,719 $ 146,343 $ (195,056) $ 70,012 $ (10,914) $ (2,918) $ 5,304 $ 268,001 $ 151,469 $ (129,207) $ 53,802 $ 3,910 $ 1,342 $ 5,490 Continued on next page. 104 Qty of Pasco Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended Decernber 31,2006 Special Revenue Funds 185 188 189 190 191 Rvershore Trail Spec.Lodging Litter Revolving TRAC Dev.& REVENUES Fund Fund Abaterent Abatement Operating Fund Taxes $ - $ 170,474 $ - $ - $ 177,766 Licenses&Pen„its - - - - - Intergovemmental Revenue - - - - Charges for Services - - 5,000 11,484 - Fines&Forfeitures - - - 32,037 - Investment Income 226 376 6 13,721 250 Mscellaneous Revenue 8,055 - 5,000 50,819 - Total Revenues $ 8,281 $ 170,850 $ 10,006 $ 108,061 $ 178,016 EXPENDITURES Current: General Government $ - $ - $ - $ - $ - Judidal - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - - 13,461 - - Health and Human Services - - - - - EcononicEnvironment - 170,474 - 35,135 - Culture and Recreation 11,708 - - - 208,550 Capital Outlay - - - Debt Service Principal - - - 70,345 Interest - - - - 34,662 Total Expenditures $ 11,708 $ 170,474 $ 13,461 $ 35,135 $ 313,557 Excess of Revenues Over(Under)Expenditures $ (3,427) $ 376 $ (3,455) $ 72,926 $ (135,541) OTHER FINANGNG SOURCES(USES) Disposition of Fixed Assets $ - $ - $ $ - $ - Proceeds of General L Debt - - - - Insurance Recoveries - - - - Operating Transfers-(In) - - 4,000 - 115,000 Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) $ - $ - $ 4,000 $ - $ 115,000 Net Change in Fund Balances $ (3,427) $ 376 $ 545 $ 72,926 $ (20,541) Prior Year Adjustments $ (104) $ (65) $ 26 $ (865) $ (763) Fund Balance Beginning $ 23,373 $ 423 $ 3,697 $ 195,285 $ 54,640 Fund Balance,Ending $ 19,842 $ 734 $ 4,268 $ 267,346 $ 33,336 See accompanying rimes to the basic financial statements. 105 Special Revenue Funds 192 193 194 195 196 Park Capital Indust. Devel. Stadium/ Sun Willows Fund Improvement & Infrastructure Conv. Center Development Total $ $ 944,378 $ $ 174,790 $ - $ 2,357,297 - - - - 203,626 - - 83,000 - 1,494,435 313,189 - - - - 1,469,911 - - - - 32,037 78,304 114,786 30,257 (2,105) 6,262 341,855 - - - 21,850 - 755,277 $ 391,493 $ 1,059,164 $ 30,257 $ 277,535 $ 6,262 $ 6,654,438 - - 1,994,522 - - 188,146 - - - 1,132,745 - - - 34,574 - - - - - 312,545 - - 96,513 - 744,842 600,000 599,710 - 460 2,675,537 - - 90,000 - 160,345 - - 35,750 - 80,121 $ - $ 600,000 $ 599,710 $ 222,263 $ 460 $ 7,323,377 $ 391,493 $ 459,164 $ (569,453) $ 55,272 $ 5,802 $ (668,939) - - - 109 246,430 - - 2,311,867 (653,539) (10,813) (291,000) (83,000) (246,483) (1,388,835) $ (653,539) $ (10,813) $ (44,570) $ (83,000) $ (246,483) $ 923,141 $ (262,046) $ 448,351 $ (614,023) $ (27,728) $ (240,681) $ 254,202 $ (24,901) $ (15,148) $ (4,287) $ (144,520) $ (2,253) $ (328,087) $ 1,732,618 $ 2,663,014 $ 1,015,991 $ 149,758 $ 242,934 $ 7,950,685 $ 1,445,671 $ 3,096,217 $ 397,681 $ (22,490) $ - $ 7,876,800 Continued on next page. 106 City of Pasco Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2006 Debt Service Funds 272 273 625 709-797 Library/Fire 2002 UTGO LID LID REVENUES Station Bonds Bonds Guaranty Assessments Total Taxes $ 177,243 $ 377,017 $ - $ - $ 554,260 Licenses&Permits - - - - Intergovemmental Revenue - - - - - Charges for Services - - - Fines&Forfeitures - - - - Investment Income 5,550 13,153 47,784 70,604 137,091 Mscellaneous Revenue - - - 412,539 412,539 Total Revenues $ 182,793 $ 390,170 $ 47,784 $ 483,143 $ 1,103,890 EXPENDITURES Current: General Government $ - $ - $ - $ - $ - Judicial - - - Public Safety - - - Physical Environment - - 13 13 Transportation - - - - Health and Human Services - - - Economic Environment - - - - - Culture and Recreation - - - - - Capital Outlay - - - - - Debt Service Principal 100,000 290,000 - 85,000 475,000 Interest 75,704 94,566 - 19,255 189,525 Total Expenditures $ 175,704 $ 384,566 $ 13 $ 104,255 $ 664,538 Excess of Revenues Over(Under)Expenditures $ 7,089 $ 5,604 $ 47,771 $ 378,888 $ 439,352 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets $ - $ - $ - $ - $ - Proceeds of General L-T Debt - - - - Insurance Recoveries - - - - - Operating Transfers-(In) - - 340,007 - 340,007 Operating Transfers-(Out) - - (646,572) (646,572) Total Other Financing Sources(Uses) $ - $ - $ 340,007 $ (646,572) $ (306,565) Net Change in Fund Balances $ 7,089 $ 5,604 $ 387,778 $ (267,684) $ 132,787 Prior Year Adjustments $ (1,586) $ (4,108) $ (5,611) $ 92,463 $ 81,158 Fund Balance Beginning $ 86,427 $ 206,798 $ 1,203,482 $ 1,447,632 $ 2,944,339 Fund Balance,Ending $ 91,930 $ 208,294 $ 1,585,649 $ 1,272,411 $ 3,158,284 See accompanying notes to the basic financial statements. 107 Capital Project Capital Project Funds Funds Permanent Funds General Purpose 700 605 606 610 621 Construction LID Cemetery Cemetery Blvd.Perpetual Landfill 367 Fund Construction Total Perpetual Care Pre-Need Fund Maint.Fund Remediation Total - 16,625 12,306 - 28,931 (37,541) (37,541) 12,532 1,409 43,180 5,021 62,142 - - 160,700 220 160,920 $ $ (37,541) $ (37,541) $ 29,157 $ 13,715 $ 203,880 $ 5,241 $ 251,993 1,639,538 683,990 2,323,528 - - $ 1,639,538 $ 683,990 $ 2,323,528 $ - $ - $ - $ - $ - $ (1,639,538) $ (721,531) $ (2,361,069) $ 29,157 $ 13,715 $ 203,880 $ 5,241 $ 251,993 1,639,538 529 1,640,067 - - - - (12,620) (1,420) (43,180) - (57,220) $ 1,639,538 $ 529 $ 1,640,067 $ (12,620) $ (1,420) $ (43,180) $ - $ (57,220) $ - $ (721,002) $ (721,002) $ 16,537 $ 12,295 $ 160,700 $ 5,241 $ 194,773 $ - $ 2,344 $ 2,344 $ (1,464) $ (147) $ (13,670) $ (502) $ (15,783) $ 92,835 $ (532,518) $ (439,683) $ 304,966 $ 37,923 $ 972,525 $ 7,918 $ 1,323,332 $ 92,835 $ (1,251,176) _L_L158,3411 $ 320,039 $ 50,071 $ 1,119,555 $ 12,657 $ 1,502,322 Continued on next page. 108 City of Pasco Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31, 2006 2006 2005 Total Other Total Other Governmental Governmental REVENUES Funds Funds Taxes $ 2,911,557 $ 2,752,581 Licenses & Permits 203,626 11,770 Intergovernmental Revenue 1,494,435 1,485,662 Charges for Services 1,498,842 1,736,439 Fines & Forfeitures 32,037 36,831 Investment Income 503,547 380,089 Miscellaneous Revenue 1,328,736 1,316,561 Total Revenues $ 7,972,780 $ 7,719,933 EXPENDITURES Current: General Government $ - $ - Judicial - - Public Safety 1,994,522 1,619,825 Physical Environment 188,159 186,811 Transportation 1,132,745 1,103,984 Health and Human Services 34,574 33,553 Economic Environment 312,545 305,604 Culture and Recreation 744,842 648,799 Capital Outlay 4,999,065 3,169,946 Debt Service Principal 635,345 626,207 Interest 269,646 248,331 Total Expenditures $ 10,311,443 $ 7,943,060 Excess of Revenues Over(Under) Expenditures $ (2,338,663) $ (223,127) OTHER FINANCING SOURCES (USES) Disposition of Fixed Assets $ - $ 15,130 Proceeds of General L-T Debt - - Insurance Recoveries 109 11,074 Operating Transfers - (In) 4,291,941 4,549,843 Operating Transfers - (Out) (2,092,627) (3,428,906) Total Other Financing Sources (Uses) $ 2,199,423 $ 1,147,141 Net Change in Fund Balances $ (139,240) $ 924,014 Prior Year Adjustments $ (260,368) $ 63,463 Fund Balance Beginning $ 11,778,673 $ 10,791,196 Fund Balance, Ending $ 11,379,065 $ 11,778,673 See accompanying notes to the basic financial statements. 109 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL CITY STREET FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ 172,800 $ 172,800 $ 177,675 $ 4,875 $ 4,875 Licenses&Pernrts 177,000 177,000 203,626 26,626 26,626 Intergovemn-ental Revenue 580,000 580,000 741,450 161,450 161,450 Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income 3,000 3,000 1,476 (1,524) (1,524) Miscellaneous Revenue 18,826 18,826 18,826 Total Revenues 932,800 932,800 1,143,053 210,253 210,253 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation 1,114,615 1,114,615 1,063,815 50,800 50,800 Health and Human Services - - - - - Econornic Environment - - - - Culture and Recreation - - - - - Capital Outlay 240,000 240,000 166,494 73,506 73,506 Debt Service - - Principal - - - - Interest - - - - - Total Expenditures 1,354,615 1,354,615 1,230,309 124,306 124,306 Excess of Revenues Over(Under)Expenditures (421,815) (421,815) (87,256) 334,559 334,559 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets 100 100 - (100) (100) Proceeds of General L-T Debt - - - - - Insurance Recoveries 100 100 109 9 9 Operating Transfers-In 430,000 430,000 280,000 (150,000) (150,000) Operating Transfers-(Out) - - - Total Other Financing Sources(Uses) 430,200 430,200 280,109 (150,091) (150,091) Net Change in Fund Balances 8,385 8,385 192,853 184,468 184,468 Prior Year Adj ustments - - (9,948) (9,948) (9,948) Fund Balance Beginning - - 73,336 73,336 73,336 Fund Balance,Ending $ 8,385 $ 8,385 $ 256,241 $ 247,856 $ 247,856 See accompanying notes to the basic financial statements. 110 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL I-182 CORRI DOR TRAFFIC IMPACT FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ - $ - $ - $ - Licenses&Pernrts - - - - - Intergovemmental Revenue - - - 0 0 Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income - - - 0 0 Miscellaneous Revenue 61,100 61,100 440,128 379,028 379,028 Total Revenues 61,100 61,100 440,128 379,028 379,028 EXPENDITURES Current: General Govemment - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - - - - - HeaIth and Human Services - - - - - Economic Environment - - - - - Culture and Recreation - - - - - Capital Outlay - - - - - Debt Service - - - Principal - - - - - Interest - - - - - Total Expenditures - - - - - Excess of Revenues Over(Under)Expenditures 61,100 61,100 440,128 379,028 379,028 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Operating Transfers-In - - - - - Operating Transfers-(Out) (61,100) (61,100) - 61,100 61,100 Total Other Financing Sources(Uses) (61,100) (61,100) - 61,100 61,100 Net Change in Fund Balances - - 440,128 440,128 440,128 Prior Year Adjustments - - - - - Fund Balance Beginning - - - - - Fund Balance,Ending $ - $ - $ 440,128 $ 440,128 $ 440,128 See acccr panying notes to the basic finandal statements. 111 CITY OF PASCO STATEIVENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL STREET OVERLAY FUND FOR THE YEAR ENDED DECEIVBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Crigianal Budget Final Budget REVENUES Taxes $ 629,000 $ 629,000 $ 712,214 $ 83,214 $ 83,214 licenses&Per nits - - - - - Intergovemmental Revenue - - - - - Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income 25,000 25,000 65,423 40,423 40,423 Miscellaneous Revenue - - - - - Total Revenues 654,000 654,000 777,637 123,637 123,637 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - - - - - Health and Human Services - - - - - Economc Environment - - - - - Culture and Recreation - - - - - CapitalOutlay 900,000 900,000 882,498 17,502 17,502 Debt Service - - Principal - - - - - Interest - - - - - Total Expenditures 900,000 900,000 882,498 17,502 17,502 Excess of Revenues 0,er(Under)Expenditures (246,000) (246,000) (104,861) 141,139 141,139 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - Proceeeds of General L Debt - - - - Insurance Recoveries - - - - Operating Transfers-In - - - - Operating Transfers-(Out) - - - - Total Other Finanang Sources(Uses) - - - - - Net Change in Fund Balances (246,000) (246,000) (104,861) 141,139 141,139 Prior Year Adjustments - - (7,020) (7,020) (7,020) Fund Balance Beginning 1,000,000 1,000,000 1,547,587 547,587 547,587 Fund Balance,Ending $ 754,000 $ 754,000 $ 1,435,706 $ 681,706 $ 681,706 See accor panying notes to the basic financial statements. 112 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ $ - $ - $ - Licenses&Permits - - - - Intergovemmental Revenue 825,000 825,000 645,115 (179,885) (179,885) Charges for Services - - - - - Fines&Forfeitures - - - - Investment Income 10,000 10,000 - (10,000) (10,000) Miscellaneous Revenue 51,000 51,000 101,438 50,438 50,438 Total Revenues 886,000 886,000 746,553 (139,447) (139,447) EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety 59,275 59,275 62,325 (3,050) (3,050) Physical Environment - - - - - Transportation - - - - Health and Human Services - - - - - Economic Environment 101,350 101,350 106,936 (5,586) (5,586) Culture and Recreation - - - - - Capital Outlay 571,000 571,000 366,176 204,824 204,824 Debt Service - - Principal - - - - - Interest - - - - - Total Expenditures 731,625 731,625 535,437 196,188 196,188 Excess of Revenues Over(Under)Expenditures 154,375 154,375 211,116 56,741 56,741 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - Insurance Recoveries - - Operating Transfers-In - - - - Operating Transfers-(Out) (152,000) (152,000) (104,000) 48,000 48,000 Total Other Financing Sources(Uses) (152,000) (152,000) (104,000) 48,000 48,000 Net Change in Fund Balances 2,375 2,375 107,116 104,741 104,741 Prior Year Adjustments - - (78,075) (78,075) (78,075) Fund Balance Beginning - - 139,397 139,397 139,397 Fund Balance,Ending $ 2,375 $ 2,375 $ 168,438 $ 166,063 $ 166,063 See accompanying notes to the basic financial statements. 113 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL MLK OO WIUNITY CENTER FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Odgianal Budget Final Budget REVENUES Taxes $ - $ - $ - $ - $ - Licenses&Permits - - - - - Intergovemmental Revenue - - - - - Charges for Services 1,000 1,000 2,853 1,853 1,853 Fines&Forfeitures - - - - - Investment Income 200 200 29,533 29,333 29,333 Miscellaneous Revenue 24,000 24,000 (444) (24,444) (24,444) Total Revenues 25,200 25,200 31,942 6,742 6,742 EXPENDITURES Current: General Govemmrent - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - - - - - Health and Human Services - - - - - Econorric Environment - - - - - Culture and Recreation 121,925 137,925 138,668 (16,743) (743) Capital Outlay - - - - Debt Service - Principal - - - Interest - - - - - Total Expenditures 121,925 137,925 138,668 (16,743) (743) Excess of Revenues Over(Under)Expenditures (96,725) (112,725) (106,726) (10,001) 5,999 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - Proceeds of General L-T Debt - - Insurance Recoveries - - - - - Operating Transfers-In 97,500 113,500 113,500 16,000 - Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 97,500 113,500 113,500 16,000 - Net Change in Fund Balances 775 775 6,774 5,999 5,999 Prior Year Adjustments - - (41) (41) (41) Fund Balance Beginning 1,000 1,000 2,620 1,620 1,620 Fund Balance,Ending $ 1,775 $ 1,775 $ 9,353 $ 7,578 $ 7,578 See accompanying notes to the basic financial statements. 114 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL AMBULANCE FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ $ - $ - $ - Licenses&Permits - - - - Intergovemmental Revenue 1,200 1,200 1,463 263 263 Charges for Services 870,000 870,000 859,240 (10,760) (10,760) Fines&Forfeitures - - - -Investment Income - - (9,311) (9,311) (9,311) Miscellaneous Revenue 5,000 5,000 450 (4,550) (4,550) Total Revenues 876,200 876,200 851,842 (24,358) (24,358) EXPENDITURES Current: General Govemment - - - - - Judicial - - - - - Public Safety 1,634,012 1,979,812 1,932,197 (298,185) 47,615 Physical Environment - - - - - Transportation - - - - Health and Human Services - - - Economic Environment - - - - Culture and Recreation - - - - - Capital Outlay 41,540 69,340 60,199 (18,659) 9,141 Debt Service - - Principal - - - - - Interest - - - - Total Expenditures 1,675,552 2,049,152 1,992,396 (316,844) 56,756 Excess of Revenues Over(Under)Expenditures (799,352) (1,172,952) (1,140,554) (341,202) 32,398 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - Proceeds of General L-T Debt - - - - Insurance Recoveries - - - - - Operating Transfers-In 800,000 1,173,600 1,280,399 480,399 106,799 Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 800,000 1,173,600 1,280,399 480,399 106,799 Net Change in Fund Balances 648 648 139,845 139,197 139,197 Prior Year Adjustments - - 4,437 4,437 4,437 Fund Balance Beginning - - 123,719 123,719 123,719 Fund Balance,Ending $ 648 $ 648 $ 268,001 $ 267,353 $ 267,353 See accompanying notes to the basic financial statements. 115 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL CONTINGENCY FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ $ $ - $ - Licenses&Permits - - - Intergovernmental Revenue - - - Charges for Services - - - Fines&Forfeitures - - - Investment Income 6,000 6,000 5,811 (189) (189) Miscellaneous Revenue - - - 0 0 Total Revenues 6,000 6,000 5,811 (189) (189) EXPENDITURES Current: General Government - - - - - Judicial - - - Public Safety - - - Physical Environment - - - Transportation - - - - Health and Human Services - - - Economic Environment - - - - - Culture and Recreation - - - - - Capital Outlay - - - - - Debt Service - - Prinapal - - - - - Interest - - - - - Total Expenditures - - - - - Excess of Revenues Over(Under)Expenditures 6,000 6,000 5,811 (189) (189) OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - - Insurance Recoveries - - - Operating Transfers-In - - - - Operating Transfers-(Out) - - - Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 6,000 6,000 5,811 (189) (189) Prior Year Adjustments - - (685) (685) (685) Fund Balance Beginning 168,644 168,644 146,343 (22,301) (22,301) Fund Balance,Ending $ 174,644 $ 174,644 $ 151,469 $ (23,175) $ (23,175) See accompanying notes to the basic financial statements. 115 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL CEMETERY FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ - $ - $ - $ - Licenses&Permits - - - - Intergovernmental Revenue - - - - - Charges for Services 193,000 193,000 195,059 2,059 2,059 Fines&Forfeitures - - - - - Investrnent Inoorne 1,000 1,000 4,373 3,373 3,373 Miscellaneous Revenue 1,100 1,100 7 (1,093) (1,093) Total Revenues 195,100 195,100 199,439 4,339 4,339 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment 207,426 207,426 188,146 19,280 19,280 Transportation - - - - - Health and Human Services - - - Economic Environment - - - Culture and Recreation - - - Capital Outlay - - - Debt Service - - Principal 30,000 30,000 - 30,000 30,000 Interest 7,000 7,000 9,709 (2,709) (2,709) Total Expenditures 244,426 244,426 197,855 46,571 46,571 Excess of Revenues Over(Under)Expenditures (49,326) (49,326) 1,584 50,910 50,910 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - Proceeds of General L-T Debt - - - - Insurance Recoveries - - - - - Operating Transfers-In 59,700 59,700 64,040 4,340 4,340 Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 59,700 59,700 64,040 4,340 4,340 Net Change in Fund Balances 10,374 10,374 65,624 55,250 55,250 Prior Year Adjustments - - 225 225 225 Fund Balance Beginning - - (195,056) (195,056) (195,056) Fund Balance,Ending $ 10,374 $ 10,374 $ (129,207) _L_L139,5811 $ (139,581) See accompanying notes to the basic financial statements. 116 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL ATHLETIC FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ - $ - $ - $ - Licenses&Permits - - - - Intergovernmental Revenue - - - - - Charges for Services 114,000 114,000 83,086 (30,914) (30,914) Fines&Forfeitures - - - - - Investment Income 500 500 2,702 2,202 2,202 Miscellaneous Revenue 4,000 4,000 440 (3,560) (3,560) Total Revenues 118,500 118,500 86,228 (32,272) (32,272) EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - - - - - Health and Human Services - - - - - Economic Environment - - - - - Culture and Recreation 108,345 108,345 58,369 49,976 49,976 Capital Outlay - - - Debt Service Principal - Interest - - - Total Expenditures 108,345 108,345 58,369 49,976 49,976 Excess of Revenues Over(Under)Expenditures 10,155 10,155 27,859 17,704 17,704 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - - - Insurance Recoveries - - - - - Operating Transfers-In - - - - - Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 10,155 10,155 27,859 17,704 17,704 Prior Year Adjustments - - (44,069) (44,069) (44,069) Fund Balance Beginning 25,000 25,000 70,012 45,012 45,012 Fund Balance,Ending $ 35,155 $ 35,155 $ 53,802 $ 18,647 $ 18,647 See accompanying notes to the basic financial statements. 117 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL SENIOR CENTER FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ $ $ - $ - Licenses&Permits - - - Intergovemmental Revenue 24,000 24,000 23,407 (593) (593) Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income 100 100 (749) (849) (849) Miscellaneous Revenue 43,300 43,300 56,757 13,457 13,457 Total Revenues 67,400 67,400 79,415 12,015 12,015 EXPENDITURES Current: General Government - - - - - Judicial - - - - Public Safety - - - - Physical Environment - - - - Transportation - - - - - Health and Human Services 36,750 46,750 34,574 2,176 12,176 Economic Environment - - - - - Culture and Recreation 191,167 221,167 231,034 (39,867) (9,867) Capital Outlay - - - - - Debt Service - - Principal - - - Interest - - - - - Total Expenditures 227,917 267,917 265,608 (37,691) 2,309 Excess of Revenues Over(Under)Expenditures (160,517) (200,517) (186,193) (25,676) 14,324 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - Proceeds of General L-T Debt - - - - Insurance Recoveries - - - - - Operating Transfers-In 161,000 201,000 200,998 39,998 (2) Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 161,000 201,000 200,998 39,998 (2) Net Change in Fund Balances 483 483 14,805 14,322 14,322 Prior Year Adjustments - - 19 19 19 Fund Balance Beginning - - (10,914) (10,914) (10,914) Fund Balance,Ending $ 483 $ 483 $ 3,910 $ 3,427 $ 3,427 See accompanying notes to the basic financial statements. 118 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL MULTI-MODEL FACILITY FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ $ - $ - $ - Licenses&Permits - - - - Intergovernmental Revenue - - - Charges for Services - - - Fines&Forfeitures - - - Investmentlncome 1,000 1,000 303 (697) (697) Miscellaneous Revenue 38,100 46,100 51,951 13,851 5,851 Total Revenues 39,100 47,100 52,254 13,154 5,154 EXPENDITURES Current: General Government - - - - - Judicial - - - - Public Safety - - - - Physical Environment - - - - - Transportation 48,755 56,755 55,469 (6,714) 1,286 Health and Human Services - - - - - Economic Environment - - - - Culture and Recreation - - - - Capital Outlay - - - - Debt Service - - Principal - - - - Interest - - - - - Total Expenditures 48,755 56,755 55,469 (6,714) 1,286 Excess of Revenues Over(Under)Expenditures (9,655) (9,655) (3,215) 6,440 6,440 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - Proceeds of General L-T Debt - - - - Insurance Recoveries - - - - - Operating Transfers-In 7,500 7,500 7,500 - - Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 7,500 7,500 7,500 - - Net Change in Fund Balances (2,155) (2,155) 4,285 6,440 6,440 Prior Year Adjustments - - 3,865 3,865 3,865 Fund Balance Beginning 5,000 5,000 (2,918) (7,918) (7,918) Fund Balance,Ending $ 2,845 $ 2,845 $ 5,232 $ 2,387 $ 2,387 See accompanying notes to the basic financial statements. 119 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL BI-CENTENIAL FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Oiigianal Budget Final Budget REVENUES Taxes $ - $ $ - $ - $ - Licenses&Permits - - - - Intergovernmental Revenue - - - Charges for Services - - - Fines&Forfeitures - - - InvestmentIncome 150 150 211 61 61 Miscellaneous Revenue - - - - - Total Revenues 150 150 211 61 61 EXPENDITURES Current: General Government - - - - - Judicial - - - - Public Safety - - - - Physical Environment - - - - Transportation - - - - Health and Human Services - - - - Economic Environment - - - - Culture and Recreation - - - - Capital Outlay - - - - - Debt Service - - Principal - - - - - Interest - - - - - Total Expenditures - - - - - Excess of Revenues Over(Under)Expenditures 150 150 211 61 61 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Operating Transfers-In - - - - - Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 150 150 211 61 61 Prior Year Adjustments - - (25) (25) (25) Fund Balance Beginning 5,200 5,200 5,304 104 104 Fund Balance,Ending $ 5,350 $ 5,350 $ 5,490 $ 140 $ 140 See accompanying notes to the basic financial statements. 120 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL RIVERSHORE TRAIL AND MARINA MAINTENANCE FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ $ - $ - $ - Licenses&Permits - - - - Intergovernmental Revenue - - - - Charges for Services - - - Fines&Forfeitures - - - - InvestmentIncome 800 800 226 (574) (574) Miscellaneous Revenue 10,000 10,000 8,055 (1,945) (1,945) Total Revenues 10,800 10,800 8,281 (2,519) (2,519) EXPENDITURES Current: General Government - - - - - Judicial - - - Public Safety - - - Physical Environment - - - Transportation - - - - Health and Human Services - - - Economic Environment - - - - - Culture and Recreation 14,330 14,330 11,708 2,622 2,622 Capital Outlay - - - - - Debt Service - - Principal - - - Interest - - - - - Total Expenditures 14,330 14,330 11,708 2,622 2,622 Excess of Revenues Over(Under)Expenditures (3,530) (3,530) (3,427) 103 103 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - Proceeds of General L-T Debt - - - - Insurance Recoveries - - - - Operating Transfers-In - - - - Operating Transfers-(Out) - - - - Total Other Financing Sources(Uses) - - - - Net Change in Fund Balances (3,530) (3,530) (3,427) 103 103 Prior Year Adjustments - - (104) (104) (104) Fund Balance Beginning 20,000 20,000 23,373 3,373 3,373 Fund Balance,Ending $ 16,470 $ 16,470 $ 19,842 $ 3,372 $ 3,372 See accompanying notes to the basic financial statements. 121 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL SPECIAL ASSESSMENT LODGING FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Oiigianal Budget Final Budget REVENUES Taxes $ 190,000 $ 190,000 $ 170,474 $ (19,526) $ (19,526) licenses&Permits - - - - - Intergovernmental Revenue - - - Charges for Services - - - Fines&Forfeitures - - - - Investment Income - 376 376 376 Miscellaneous Revenue - - - - - Total Revenues 190,000 190,000 170,850 (19,150) (19,150) EXPENDITURES Current: General Government - - - - - Judicial - - - - Public Safety - - - - Physical Environment - - - - Transportation - - - - Health and Human Services - - - - - Economic Environment 190,000 190,000 170,474 19,526 19,526 Culture and Recreation - - - - - Capital Outlay - - - - Debt Service - - Nndpal - - - - - Interest - - - - - Total Expenditures 190,000 190,000 170,474 19,526 19,526 Excess of Revenues Over(Under)Expenditures - - 376 376 376 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - - - Insurance Recoveries - - - - Operating Transfers-In - - - - Operating Transfers-(Out) - - - - Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances - - 376 376 376 Prior Year Adjustments - - (65) (65) (65) Fund Balance Beginning - - 423 423 423 Fund Balance,Ending $ $ - $ 734 $ 734 $ 734 See accompanying notes to the basic financial statements. 122 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL UTTERABATEMFNf FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ - $ $ $ - Licenses&Pen-nits - - - Intergovemmental Revenue 7,000 7,000 - (7,000) (7,000) Charges for Services - - 5,000 5,000 5,000 Fines&Forfeitures - - - - - Investment Inoome 100 100 6 (94) (94) Miscellaneous Revenue 4,000 4,000 5,000 1,000 1,000 Total Revenues 11,100 11,100 10,006 (1,094) (1,094) EXPENDITURES Current: General Government - - - - Judicial - - Public Safety - - Physical Environment - - - - Transportation 6,980 10,980 13,461 (6,481) (2,481) Health and Human Services - - - - Economic Environment - - - Culture and Recreation - - - Capital Outlay - - - Debt Service Principal - - - Interest - - - - Total Expenditures 6,980 10,980 13,461 (6,481) (2,481) Excess of Revenues Over(Under)Expenditures 4,120 120 (3,455) (7,575) (3,575) OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - Proceeds of General L-T Debt - - - Insurance Recoveries - - - - - Operating Transfers-In - 4,000 4,000 4,000 - Operating Transfers-(Out) - - - - - Total Other Finandng Sources(Uses) - 4,000 4,000 4,000 - Net Change in Fund Balances 4,120 4,120 545 (3,575) (3,575) Prior Year Adjustments - - 26 26 26 Fund Balance Beginning 3,000 3,000 3,697 697 697 Fund Balance,Ending $ 7,120 $ 7,120 $ 4,268 $ (2,852) $ (2,852) See accompanying notes to the basic financial statements. 123 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL REVOLVING ABATEMENT FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ $ $ - $ - Licenses&Permits - - - Intergovernmental Revenue - - - - Charges for Services 5,000 5,000 11,484 6,484 6,484 Fines&Forfeitures 30,000 30,000 32,037 2,037 2,037 Investment Income 4,000 4,000 13,721 9,721 9,721 Miscellaneous Revenue 10,000 10,000 50,819 40,819 40,819 Total Revenues 49,000 49,000 108,061 59,061 59,061 EXPENDITURES Current: General Government - - - - - Judicial - - - - Public Safety - - - - Physical Environment - - - - Transportation - - - - Health and Human Services - - - - - Economic Environment 26,600 26,600 35,135 (8,535) (8,535) Culture and Recreation - - - - - Capital Outlay - - - - Debt Service - - Principal - - - - Interest - - - - - Total Expenditures 26,600 26,600 35,135 (8,535) (8,535) Excess of Revenues Over(Under)Expenditures 22,400 22,400 72,926 50,526 50,526 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - - - Insurance Recoveries - - - - Operating Transfers-In - - - - Operating Transfers-(Out) - - - - Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 22,400 22,400 72,926 50,526 50,526 Prior Year Adjustments - - (865) (865) (865) Fund Balance Beginning 150,000 150,000 195,285 45,285 45,285 Fund Balance,Ending $ 172,400 $ 172,400 $ 267,346 $ 94,946 $ 94,946 See accompanying notes to the basic financial statements. 124 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL TRAC DEVELOPMENT&OPERATING FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ 140,000 $ 160,000 $ 177,766 $ 37,766 $ 17,766 Licenses&Perrrrts - - - - - Intergovemmental Revenue - - - Charges for Services - - - Fines&Forfeitures - - - - - Investment Income 500 500 250 (250) (250) Miscellaneous Revenue - - - - - Total Revenues 140,500 160,500 178,016 37,516 17,516 EXPENDITURES Current: General Government - - - - - Judicial - - - Public Safety - - - Physical Environment - - - Transportation - - - - Health and Human Services - - - Ecoriomic Environment - - - - - Culture and Recreation 150,000 210,000 208,550 (58,550) 1,450 Capital Outlay - - - - Debt Service - Principal 70,350 70,350 70,345 5 5 Interest 34,675 34,675 34,662 13 13 Total Expenditures 255,025 315,025 313,557 (58,532) 1,468 Excess of Revenues Over(Under)Expenditures (114,525) (154,525) (135,541) (21,016) 18,984 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - Proceeds of General L-T Debt - - - Insurance Recoveries - - - - - Operating Transfers-In 75,000 115,000 115,000 40,000 - Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 75,000 115,000 115,000 40,000 - Net Change in Fund Balances (39,525) (39,525) (20,541) 18,984 18,984 Prior Year Adjustments - - (763) (763) (763) Fund Balance Beginning 40,000 40,000 54,640 14,640 14,640 Fund Balance,Ending $ 475 $ 475 $ 33,336 $ 32,861 $ 32,861 See accompanying notes to the basic financial statements. 125 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL PARK DEVELOPMENT FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ - $ - $ - $ - Licenses&Permits - - - - Intergovernmental Revenue - - - - - Charges for Services 184,200 184,200 313,189 128,989 128,989 Fines&Forfeitures - - - - - Investrnent Inoorne 20,000 20,000 78,304 58,304 58,304 Miscellaneous Revenue - - - 0 0 Total Revenues 204,200 204,200 391,493 187,293 187,293 EXPENDITURES Current: General Government - - - - - Judicial - - - Public Safety - - - Physical Environment - - - Transportation - - - - HeaIth and Human Services - - - - - Economic Environment - - - - - Culture and Recreation - - - - - Capital Outlay 422,000 422,000 - 422,000 422,000 Debt Service - - Principal - - - - - Interest - - - - - Total Expenditures 422,000 422,000 - 422,000 422,000 Excess of Revenues Over(Under)Expenditures (217,800) (217,800) 391,493 609,293 609,293 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Operating Transfers-In - - - - - Operating Transfers-(Out) - - (653,539) (653,539) (653,539) Total Other Financing Sources(Uses) - - (653,539) (653,539) (653,539) Net Change in Fund Balances (217,800) (217,800) (262,046) (44,246) (44,246) Prior Year Adjustments - - (24,901) (24,901) (24,901) Fund Balance Beginning 1,800,000 1,800,000 1,732,618 (67,382) (67,382) Fund Balance,Ending $ 1,582,200 $ 1,582,200 $ 1,445,671 $ (136,529) $ (136,529) See accompanying notes to the basic financial statements. 126 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL CAPITAL IMPROVEMENT FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ 500,000 $ 500,000 $ 944,378 $ 444,378 $ 444,378 Licenses&Permits - - - - - Intergovemmental Revenue - - Charges for Services - - Fines&Forfeitures - - - - - Investment Inane 50,000 50,000 114,786 64,786 64,786 Miscellaneous Revenue - - - - - Total Revenues 550,000 550,000 1,059,164 509,164 509,164 EXPENDITURES Current: General Government - - - - - Judidal - - Public Safety - - Physical Environment - - Transportation - - Health and Human Services - - - Economic Environment - - Culture and Recreation - - - - - Capital Outlay 1,200,000 1,200,000 600,000 600,000 600,000 Debt Service - - Principal - - - - Interest - - - - - Total Expenditures 1,200,000 1,200,000 600,000 600,000 600,000 Excess of Revenues Over(Under)Expenditures (650,000) (650,000) 459,164 1,109,164 1,109,164 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - Proceeds of General L-T Debt - Insurance Recoveries - Operating Transfers-In - Operating Transfers-(Out) (10,813) (10,813) (10,813) Total Other Financing Sources(Uses) (10,813) (10,813) (10,813) Net Change in Fund Balances (650,000) (650,000) 448,351 1,098,351 1,098,351 Prior Year Adjustments - - (15,148) (15,148) (15,148) Fund Balance Beginning 2,600,000 2,600,000 2,663,014 63,014 63,014 Fund Balance,Ending $ 1,950,000 $ 1,950,000 $ 3,096,217 $ 1,146,217 $ 1,146,217 See accompanying notes to the basic financial statements. 127 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL INDUSTRIAL DEVELOPMENT AND INFRASTRUCTURE FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Oiigianal Budget Final Budget REVENUES Taxes $ - $ $ - $ - $ - Licenses&Permits - - - - Intergovernmental Revenue - - - - Charges for Services - - - Fines&Forfeitures - - - - Investment Income 20,000 20,000 30,257 10,257 10,257 Miscellaneous Revenue - - - - - Total Revenues 20,000 20,000 30,257 10,257 10,257 EXPENDITURES Current: General Government - - - - - Judicial - - - - Public Safety - - - - Physical Environment - - - - Transportation - - - - Health and Human Services - - - - Economic Environment - - - - Culture and Recreation - - - -Capital Outlay 500,000 500,000 599,710 (99,710) (99,710) Debt Service - - Principal - - - - - Interest - - - - - Total Expenditures 500,000 500,000 599,710 (99,710) (99,710) Excess of Revenues Over(Under)Expenditures (480,000) (480,000) (569,453) (89,453) (89,453) OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Operating Transfers-In - - 246,430 246,430 246,430 Operating Transfers-(Out) - - (291,000) (291,000) (291,000) Total Other Financing Sources(Uses) - - (44,570) (44,570) (44,570) Net Change in Fund Balances (480,000) (480,000) (614,023) (134,023) (134,023) Prior Year Adjustments - - (4,287) (4,287) (4,287) Fund Balance Beginning 1,060,000 1,060,000 1,015,991 (44,009) (44,009) Fund Balance,Ending $ 580,000 $ 580,000 $ 397,681 $ (182,319) $ (182,319) See accompanying notes to the basic financial statements. 128 BUDGET TO ACTUAL STADIUNVCONVE T10N CENTER FUND FOR THE YEAR ENDED DECEIVBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Ongianal Budget Final Budget REVENUES Taxes $ 140,000 $ 140,000 $ 174,790 $ 34,790 $ 34,790 Licenses&Pemits - - - - - Intergovemmental Revenue - - 83,000 83,000.00 83,000.00 Charges for Services - - - - - Fines&Forfeitures - - - - - Investrrent Incorne 2,000 2,000 (2,105) (4,105) (4,105) Miscellaneous Revenue 20,100 20,100 21,850 1,750 1,750 Total Revenues 162,100 162,100 277,535 115,435 115,435 EXPENDITURES Current: General Govemment - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - - - - - Health and Human Services - - - - - Econornic Environment - - - - - Culture and Recreation 102,930 102,930 96,513 6,417 6,417 Capital Outlay - - - - - Debt Service - - Principal 90,000 90,000 90,000 - - Inte-est 36,050 36,050 35,750 300 300 Total Expenditures 228,980 228,980 222,263 6,717 6,717 Excess of Revenues Over(Under)Expenditures (66,880) (66,880) 55,272 122,152 122,152 OTHER FINANGNG SOURCES(USES) Disposition of Fixed Assets - - - - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Operating Transfers-In - - - - - Operating Transfers-(Out) - - (83,000) (83,000) (83,000) Total Other Financing Sources(Uses) - - (83,000) (83,000) (83,000) Net Change in Fund Balances (66,880) (66,880) (27,728) 39,152 39,152 Prior Year Adjustments - - (144,520) (144,520) (144,520) Fund Balance Beginning 70,000 70,000 149,758 79,758 79,758 Fund Balance,Ending $ 3,120 $ 3,120 $ (22,490) $ (25,610) $ (25,610) See accompanying notes to the basic financial staternents. 129 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL SUN WILLOWS DEVELOPMENT FUND FOR THE YEAR ENDED DECEMBER 31,2006 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ - $ - $ $ $ - Licenses&Pen-nits - - - Intergovemmental Revenue - - - Charges for Services - - - Fines&Forfeitures - - - Investment Income - - 6,262 6,262.00 6,262.00 Miscellaneous Revenue - - - - - Total Revenues - - 6,262 6,262 6,262 EXPENDITURES Current: General Government - - - - - Judicial - - - Public Safety - - - Physical Environment - - - Transportation - - - - Health and Human Services - - - - Economc Environment - - - - - Culture and Recreation - - - - - Capital Outlay - - 460 (460) (460) Debt Service - - Principal - - - - Interest - - - - - Total Expenditures - - 460 (460) (460) Excess of Revenues Over(Under)Expenditures - - 5,802 5,802 5,802 OTHER FINANCING SOURCES(USES) Disposition of Fixed Assets - - - - - Proceeds of General L-T Debt - - - Insurance Recoveries - - - Operating Transfers-In - - - Operating Transfers-(Out) - (248,000) (246,483) (246,483) 1,517 Total Other Financing Sources(Uses) - (248,000) (246,483) (246,483) 1,517 Net Change in Fund Balances - (248,000) (240,681) (240,681) 7,319 Prior Year Adj ustments - - (2,253) (2,253) (2,253) Fund Balance Beginning - 248,000 242,934 242,934 (5,066) Fund Balance,Ending $ - $ - $ $ - $ See acomWnying notes to the basic financial statements. 130 C]ty of Pasco Carbirrrig SUarent of Nat Assets Internal Services Fuld For the Year Ended Daoerriaer 31,2006 Ga to Activities Irtand Service Fuids Equpment Patal EgrJpment Patal Cenral Nbcicai Iris. 2006 2005 Cpe oi-is Fboamml Stores Fund Total Total ASSETS Qxre nt Assets: Qxrent Cash&Cash Rpvalents $ 115,522 $ 1,507,010 $ 173 $ 42,285 $ 1,664,990 $ 1,502,324 Pboeivables(rte of allmonces) Interfuid Loans Pboeivable - 180,000 - - 180,000 200,000 I adiarxise Irivertory - - 7,706 - 7,706 14,598 Interest Raoeivable - 7,413 - 155 7,568 22,990 Die from Ga� Units - - - - - - Total QrrentAssets $ 115,522 $ 1,694,423 $ 7,879 $ 42,440 $ 1,860,264 $ 1,739,912 N3+O n ert Assets: Restricted Assets $ - $ - $ - $ - $ - $ - Fxed Assets,Not of Dep wAcn Equpnut - 2,231,578 - - 2,231,578 2364,262 TOTALASSETS $ 115,522 $ 3,926,001 $ 7,879 $ 42,440 $ 4,091,842 $ 4,104,174 UABUTIES Offent Liabilities: Acoaxts Payable $ 20,790 $ 1,731 $ 132 $ 198 $ 22,851 $ 83,280 TotalOrrertLiabilities $ 20,790 $ 1,731 $ 132 $ 198 $ 22,851 $ 83,280 NcrrOarert Liabilities CorrpensatedAbsences $ 16,086 $ - $ - $ - $ 16,086 $ 14,514 Interfuid Loans Payable 85,000 - - - 85,000 - gains Ina.rred Not Pbported - - - 125,000 125,000 125,000 Total Liabilities $ 121,876 $ 1,731 $ 132 $ 125,198 $ 248,937 $ 222,794 NEFASSETS Investnre in Capital Assets,Not of Fbated Debt $ - $ 2231,578 $ 7,706 $ - $ 2,239,284 $ 2378,860 Restricted for Debt Service - 180,000 - - 180,000 200,000 U7estiicted (6,354) 1,512,692 41 (82,758) 1,423,621 1,302,520 Total Net Assets $ (6,354) $ 3,924,270 $ 7,747 $ (82,758) $ 3,842,905 $ 3,881,380 See aocorrpar)ing notes to the basic finanaal statements. 131 City of Pasco Combining Statement of Net Assets Internal Services Fund For the Year Ended December 31,2006 Business Type Activities Internal Service Funds Equipment Rental Equipment Rental 2006 2005 Operations Replacement Total Total ASSETS Current Assets: Current Cash&Cash Equivalents $ - $ 1,350,796 $ 1,350,796 $ 1,346,338 Receivables(net of allowances) I nterfund Loans Receivable - 41,158 41,158 - Merchandise Inventory - - - - Interest Receivable - 6,801 6,801 21,464 Due from Governmental Units - - - - Total Current Assets $ - $ 1,398,755 $ 1,398,755 $ 1,367,802 Non-Current Assets: Restricted Assets $ - $ - $ - $ - Fixed Assets,Net of Depreciation Equipment - 862,687 862,687 927,797 TOTAL ASSETS $ - $ 2,261,442 $ 2,261,442 $ 2,295,599 LIABILITIES Current Liabilities: Accounts Payable $ 2,252 $ - $ 2,252 $ 25,249 Total Current Liabilities $ 2,252 $ - $ 2,252 $ 25,249 Non-Current Liabilities Compensated Absences $ 7,884 $ - $ 7,884 $ 7,884 Interfund Loans Payable 71,158 - 71,158 109,612 Claims Incurred Not Reported - - - - Total Liabilities $ 81,294 $ - $ 81,294 $ 142,745 NET ASSETS Investment in Capital Assets,Net of Related Debt $ - $ 862,687 $ 862,687 $ 927,797 Restricted for Debt Service - 41,158 41,158 - Unrestricted (81,294) 1,357,597 1,276,303 1,225,057 Total Net Assets $ (81,294) $ 2,261,442 $ 2,180,148 $ 2,152,854 See accompanying notes to the basic financial statements. 132 Cflyd Pam ODnbnrr3 aAeTcnt of Fines,Epaxfhxes,axi Cta�in Rid fat Pss#s Irterd does Rj-d FbrttieYeerEr-cbdDamT Er 31,2006 Cauemertal A\hes Irtarrn Safioe Rr&s Esl.M t R3-d ElpIp "a t Wd Cat-d N/bdd lrs 2706 2006 CpaAc s f4laoare't Saes Find Total Trial CFERUNGFEM34 ES C1argesfaSa-vioss-Irtersl $ 64379 $ 473849 $ 30,029 $ 2,016;995 $ 3,149,24 $ 2,640800 C1agesfaSa,,ioes-Char 11,553 41,900 - 18$289 241,742 254,662 Tctal Operating Fbates $ 639,932 $ 510749 $ 3Q029 $ 2270284 $ 3,3 994 $ 2,90Q462 CIPEPAI1fGDTENSM Cpeating BP3 ses $ 97,445 $ - $ 44,802 $ 30964 $ 17$211 $ 1629 NbrteErmIspa-ses 560600 - - - 595600 547,210 IrarameClarrsaidEN)ase_; - - - 2360,40 2,36Q390 2,126,918 a ediatim - 17,219 - - 17,219 237,,641 Qi ital O-days 9,772 173,351 - - 131,123 19Q913 TcdCoeretirx3Epeses $ 702,817 $ 19Q570 $ 44,802 $ 2,396,354 $ 3,334,543 $ 3,315640 UEPAIFINGlNalE(l-C6S) $ (EP885) $ 325179 $ (14,773) $ (191,070) $ 56;451 $ (410178) NNGURAII f�G F�1�V..ES( Irestrnatlrmm $ (159) $ 60857 $ 30 $ 2,425 $ 6$153 $ 47,654 Tcd NbiQperatirg Fbmes(Epeses) $ (156) $ 6087 $ 30 $ 2425 $ 6Q153 $ 47,654 ln=m %)befaeOirtnUasend Trarsfes $ (63044) $ 391,0136 $ (14,743) $ (18$645) $ 124,604 $ (357,524) Captal 03tibAcs $ - $ - $ - $ - $ - Tra-desln(CLt) 5Q253 (105100) 5000 - (4Q837) 162,637 Ourjes in NEt Assets $ (3,781) $ 2809% $ 0743) $ (188,645) $ 83,767 $ (204,887) RicrYea-,4utTErts $ 197 $ (302,664) $ (6) $ (1,338) $ (308811) $ 13Q332 Assets FLrdesed in Cher Rrr, - 181,589 - - 181,589 308 824 WTA=-EM IWW-3 $ (2,770) $ 3,759,429 $ 17,496 $ 107,22; $ 3;881,380 $ 3;647,111 NETASEEM-BUNG $ (6,354) $ 3,924,270 $ 7,747 $ (82,758) $ 3,842,905 $ 3,881,380 Seeaa mpongrdestoftbadcfirErnal statamt& 133 City of Pasco Carbiring Statement of Revenues,Expenditures,and Changes in Fund Net Assets Interned Services Fund For the Year Ended Decernbff 31,2006 Business-type Activifies Internal Service Funds Equipment Rental Equipment Rental 2006 2005 Operations Replacernent Total Total OPERAII NG RE\/FINUES Charges for Services-Internal $ 280,020 $ 171,540 $ 451,560 $ 349,140 Charges for Services-Other 3,175 - 3,175 16,381 Toted Operating Revenues $ 283,195 $ 171,540 $ 454,735 $ 365,521 OPERAII NG EVEINSES Operating Expenses $ 19,900 $ - $ 19,900 $ - Nt3intenanoe Expenses 161,942 - 161,942 120,894 Insurance Claims and Expenses - - - - Depredation - 264,018 264,018 33,837 Capital Outlays - 165,537 165,537 - Total Operating Expenses $ 181,842 $ 429,555 $ 611,397 $ 154,731 OPERAl1NGINCONE(LOSS) $ 101,353 $ (258,015) $ (156,662) $ 210,790 NON-OPERA 11NG REVENUES(E)PENSES) Investment Income $ (942) $ 51,911 $ 50,969 $ 42,681 Total Non-Operating Pbmvenues(Expenses) $ (942) $ 51,911 $ 50,969 $ 42,681 Income(Loss)before Contributions and Transfers $ 100,411 $ (206,104) $ (105,693) $ 253,471 Capital Contributions $ - $ - $ - $ - Transfers In(Out) (59,263) - (59,263) (157,637) Changes in Net Assets $ 41,148 $ (206,104) $ (164,956) $ 95,834 Prior Year Adjustrrents $ (277) $ 163,608 $ 163,331 $ (85,179) Assets Purchased in Other Funds - 28,919 28,919 90,155 NETASSEfS-BEGINNING $ (122,165) $ 2,275,019 $ 2,152,854 $ 2,052,044 NETASSETS-ENDING $ (81,294) $ 2,261,442 $ 2,180,148 $ 2,152,854 See accompanying notes to the basic financial statements. 134 City of Pasco Combining Statement of Cash Flows Internal Services Fund For the Year Ended December 31,2006 Governmental Activities Internal Service Funds Equipment Rental Equipment Rental Central Medical Iris. Operations Replacerrient Stores Fund Total CASH FLOW FROM OPERATING ACTIVITIES: Cash Received from Customers $ 637,688 $ 526,265 $ 36,934 $ 2,212,421 $ 3,413,308 Payments for Maintenance&Ops. (715,913) (188,092) (47,562) (35,964) (987,531) Payments to Employees - (2,388,650) (2,388,650) Net Cash provided by operating activities $ (78,225) $ 338,173 $ (10,628) $ (212,193) $ 37,127 CASH FLOWS FROM NON-CAPITAL FINANGNGACTIMTIES Prior Year Adjustments $ 197 $ 14,370 $ (6) $ (1,338) $ 13,223 Transfers In(Out) 144,263 (105,100) 5,000 - 44,163 $ 144,460 $ (90,730) $ 4,994 $ (1,338) $ 57,386 CASH FLOW FROM CAPITAL AND RELATED FINANCINGACTIVITIES: Acquisition of Capital Assets $ - $ - $ - $ - $ - CASH FLOWS FROM INVESTINGACTIVIT1ES: InvestmentActivities $ (159) $ 65,857 $ 30 $ 2,425 $ 68,153 Net Increase(Decrease)in Cash and Cash Equivalents $ 66,076 $ 313,300 $ (5,604) $ (211,106) $ 162,666 Cash and Cash Equivalents January 1 $ 49,446 $ 1,193,710 $ 5,777 $ 253,391 $ 1,502,324 Cash and Cash Equivalents December 31 $ 115,522 $ 1,507,010 $ 173 $ 42,285 $ 1,664,990 CASH PROVIDED BY OPERATING ACTIVITIES: Net Operating Income $ (62,885) $ 325,179 $ (14,773) $ (191,070) $ 56,451 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATINGACTIVITIES Depreciation $ - $ 17,219 $ - $ - $ 17,219 (Increase)/Decrease in Customer Recavables (2,244) 10,516 6,905 7,137 22,314 Increase/(Decrease)in Accounts Payable (14,668) (14,741) (2,760) (28,260) (60,429) Increasel(Decrease)in Compensated Absences 1,572 - - 1,572 Net Cash Provide by Operating Activities $ (78,225) $ 338,173 $ (10,628) $ (212,193) $ 37,127 See accompanying notes to the basic finandal statements. 135 City of Pasco Combining Statement of Cash Flows Internal Services Fund For the Year Ended December 31, 2006 Business-type Activities Internal Service Funds Equipment Rental Equipment Rental Operations Replacement Total CASH FLOW FROM OPERATING ACTIVITIES: Cash Received from Customers $ 284,185 $ 185,213 $ 469,398 Payments for Maintenance &Ops. (185,249) (185,127) (370,376) Payments to Employees - - - Net Cash provided by operating activities $ 98,936 $ 86 $ 99,022 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Prior Year Adjustments $ (277) $ (6,381) $ (6,658) Transfers In (Out)' (97,717) (41,158) (138,875) $ (97,994) $ (47,539) $ (145,533) CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Capital Assets $ - $ - CASH FLOWS FROM INVESTING ACTIVITIES: Investment Activities $ (942) $ 51,911 $ 50,969 Net Increase (Decrease) in Cash and Cash Equivalents $ - $ 4,458 $ 4,458 Cash and Cash Equivalents January 1 $ $ 1,346,338 $ 1,346,338 Cash and Cash Equivalents December 31 $ $ 1,350,796 $ 1,350,796 'Reflects activities on interfund loans CASH PROVIDED BY OPERATING ACTIVITIES: Net Operating Income $ 101,353 $ (258,015) $ (156,662) ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation $ - $ 264,018 $ 264,018 (Increase)/Decrease in Customer Receivables 990 13,673 14,663 Increase/(Decrease) in Accounts Payable (3,407) (19,590) (22,997) Increase/(Decrease) in Compensated Absences - - - Net Cash Provide by Operating Activities $ 98,936 $ 86 $ 99,022 See accompanying notes to the basic financial statements. 136 City of Pasco SdmWeof Operatims-Budget toPdLds Ecpprrent Poll Operations Go�l Far the Year Ended DaBT per 31,2006 Qigral Final Varianceto Variarceto Budgd Budget PdLial Oigrd Budget Final B� CPERAIING S Charges for Sermoes-Internal $ 713,280 $ 713,280 $ 628,379 $ (84,901) $ (84,901) Charges for SeNoes-Cher 10,000 10,000 11,553 1,553 1,553 Total Operatingies $ 723,280 $ 723,280 $ 639,932 $ (83,348) $ (83,348) CR9:?Al1 NG E>FB`1SES Operating EVerses $ 90,575 $ 90,575 $ 97,445 $ (6,870) $ (6,870) N/birteneince ENmnses 593,890 678,890 565,600 (1,710) 83,290 lr&ranoe aeirrs and E - - - - - Depreciaticn - - - - - CapitalOutlays 10,500 10,500 9,772 728 728 Total Operating EVenses $ 694,965 $ 779,965 $ 702,817 $ (7,852) $ 77,148 CPERAl1NGINOCIVE(LOSS) $ 28,315 $ (56,635) $ (62,885) $ (91,200) $ (6,200) N01`40PEPAl1 NG F EVEN-ES(DTH`iSES) Investrrat Inocrre $ 1,000 $ 1,000 $ (159) $ (1,159) $ (1,159) Total Non-Cperding%exres(EVenses) $ 1,000 $ 1,000 $ (159) $ (1,159) $ (1,159) Income(Loss)before CatriMons and Transfers $ 29,315 $ (55,685) $ (63,044) $ (92,359) $ (7,350) Capital Catributicns $ - $ - $ - $ - $ - Tra-tiers In(Cut) - - 59,2663 59,263 59,263 Changes in Net Assets $ 29,315 $ (55,685) $ (3,781) $ (33,096) $ 51,904 RicrYeerAjustn� $ - $ - $ 85,197 $ 85,197 $ 85,197 N=rASSErs-BEG NVNG $ - $ - $ (2770) $ (2770) $ (Z770) I`Ef ASSET'S-B\ WG $ 29,315 $ (55,685) $ 78,646 $ 49,331 $ 134,331 See acompanying notes to the basic fira ud statements. 137 city of Pasoo Schedule of Operaticns-Budget to Actuals Equipment Rantal ReplamTff t Fund Ca�al For the Year Ended Deceirber 31,2006 Original Final Vaianceto Varianoeto Budget Budget Actual Original Budget Final Budget OPERATING REVENL ES Charges for Services-Internal $ 532,792 $ 532,792 $ 473,849 $ (58,943) $ (58,943) Charges for Services-other 42,000 42,000 41,900 (100) (100) Total Operating Raverx.ies $ 574,792 $ 574,792 $ 515,749 $ (59,043) $ (59,043) CPERAl1NG DXPENSES Operating Expenses $ - $ - $ - $ - $ - Kbr-tens m Expenses - - - - - Ins canoe aairns and Expenses - - - - - Depreciation - - 17,219 (17,219) (17,219) Capital Outlays 400,000 400,000 173,351 226,649 226,649 Toth Operating EVenses $ 400,000 $ 400,000 $ 190,570 $ 209,430 $ 209,430 OPERATI%INCOIVE(LOSS) $ 174,792 $ 174,792 $ 325,179 $ 150,387 $ 150,387 NON-OPERATING RE\/3 ES(Da'ENSES) Investment Income $ 60,000 $ 60,000 $ 65,857 $ 5,857 $ 5,857 Total Nor}Operating Reveniues(Expenses) $ 60,000 $ 60,000 $ 65,857 $ 5,857 $ 5,857 Non-Ravff ues Interfund Loan Rapayrrients $ 20,000 $ 20,000 $ - $ (20,000) $ (20,000) Income(Loss)before Contributions and Transfers $ 234,792 $ 234,792 $ 391,036 156,244 156,244 Capital Contributions $ - $ - $ - $ - $ - Transfers ln(Out) - - (105,100) (105,100) (105,100) Sale of Assets 1,000 1,000 - $ (11000) $ (11000) Total Capital Contributions $ 1,000 $ 1,000 $ (105,100) $ (106,100) $ (106,100) Changes in Net Assets $ 235,792 $ 235,792 $ 285,936 $ 50,144 $ 50,144 Prior YearAdustments $ - $ - $ (302,664) $ (302,664) $ (302,664) Assets Purchased in Other Funds - - 181,569 181,569 181,569 NET ASSETS-BEGINNNG $ 1,000,000 $ 1,000,000 $ 3,759,429 $ 2,759,429 $ 2759,429 NETASSETS-ENDING $ 1,235,792 $ 1,235,792 $ 3,924,270 $ 2,688,478 $ 2,688,478 See aoconpaiying notes to the basic financial statements. 138 city of Pasoo SdieWle of Operations-Budge to Pduals Central Stores Fuld Far the Year B-&d Decen-ber 31,2006 Qigral Final Variarmto Vaiianceto Bidgd arw Pdual Cligirral aidget Frral Budget CPEPAn%FEVB4UES ChargesforServioes-Irterrral $ 25,000 $ 35,000 $ 30,029 $ 5,029 $ (4,971) Charges for Servioes-Cher - - - - - Total Operating Pyres $ 25,000 $ 35,000 $ 30,029 $ 5,029 $ (4,971) CPBFAl1NG DPBNSES Operating Expenses $ 25,000 $ 40,000 $ 44,3102 $ (19,802) $ (4,302) N/t intenanoe Expenses - - - - - Imrame aaims and Expenses - - - - - Depreaaticn - - - - - Capital Olays - - - - - Total Operating Experses $ 25,000 $ 40,000 $ 44,302 $ (19,802) $ (4,302) OFDBRAl1NGINOCIVE(LOSS) $ - $ (5,000) $ (14,773) $ (14,773) $ (9,773) Na4a:'EPAl1NG FERN JES(BFEC S) Invest nt Income $ - $ - $ 30 $ 30 $ 30 Total Nm perating (Expenses) $ - $ - $ 30 $ 30 $ 30 Incom(Loss)before Contributions and Transfers $ - $ (5,000) $ (14,743) $ (14,743) $ (9,743) Capital Contributions $ - $ - $ - $ - $ - Transfers In(W) - 5,000 5,000.00 5,000 - Changes in Net Pssets $ - $ - $ (9,743) $ (9,743) $ (9,743) Prio-Year-P4ustrnxts $ - $ - $ (6) $ (6) $ (6) Assets Rxdiased in Ctlw Fuids - - - NETPSSETS-BEGI\NNG $ - $ - $ 17,496 $ 17,496 $ 17,496 NETPSSETS-B\D% $ - $ - $ 7,747 $ 7,747 $ 7,747 See aocorrparyng notes to the basic fir Erual statements. 139 aty of Pasoo SdmckleofOperations- toActuals K/kical/Dcntal Ir rrarroe land For the Year Forted Decen tier-31,2006 Crignal Final variarmto Vaianoeto Budget Budget Actual Ctignal Budget Final Budget CPER'\flW,FEVENLJES OiargesforServioes-Intemal $ 1,966,000 $ 1,996,000 $ 2,016,995 $ 30,995 $ 30,995 CNygesforServioes-Other 205,000 205,000 188,289 (16,711) (16,711) Total CperatrxjPv>✓-uffi $ 2,191,000 $ 2,191,000 $ 2,205,284 $ 14,284 $ 14,284 C>PBPA-11NG EXPBVSES Operating EVenses $ 41,500 $ 41,500 $ 35,964 $ 5,536 $ 5,536 K/bintenarm EVenses - - - - - InsuarroeaairmandEpenSes 2,115,500 2,115,500 2,360,390 (244,890) (244,890) Depredation - - - - - Capital Outlays - - - - - TcU Operatirg E $ 2157,000 $ 2,157,000 $ 2,396,354 $ (239,354) $ (239,354) CPEFAl1NGIN00IVE(LCSS) $ 34,000 $ 34,000 $ (191,070) $ (715,070) $ (225,070) NOf�OPB�/al1NG REVBI-ES(IDPIMES) Investment Income $ 10,000 $ 10,000 $ 2,425 $ (7,575) $ (7,575) Total Nm-Cperaating (EVenses) $ 10,000 $ 10,000 $ 2,425 $ (7,575) $ (7,575) Inoorre(loss)before Contributions grid Transfers $ 44,000 $ 44,000 $ (188,645) $ (232,645) $ (232,645) Capital Contribution $ - $ - $ - $ - $ - Transfers In(Out) - - - - - Chaxjes in Net Assets $ 44,000 $ 44,000 $ (188,645) $ (232,645) $ (232,645) RiorYearP4 strrents $ - $ - $ (1,338) $ (1,338) $ (1,338) Assets Purchased in C> ff Rr>ds - - - NFTASSETS-BEGINVNG $ 530,000 $ 530,000 $ 107,225 $ (422,775) $ (422775) NEF SSETS-ENDING $ 574,000 $ 574,000 $ (82,758) $ (656,758) $ (666,758) See acoorrparyng notes to the basic financial statements. 140 Scted.le d Guns-R dget to P"s EcpMert Rlard qDff-�as asiress-Nm Far theYea-Ended Dmnt er 31,2006 Oignel Final Vaiarneto Vaianoeto adget t?Iiy Pct<eI Qigrd Ridget Fire)l?liciget C PEPATI G DES Ch3DesfcrSa\Aoes-Irtarel $ - $ 144,000 $ 280,020 $ 280,020 $ 136,020 Chnjes for Savioes-Cdw - - 3,175 3,175 3,175 Total CperatirgPemi s $ - $ 144,000 $ 283,195 $ 283,195 $ 139,195 CPB:?Al1%B4TNSES grating $ - $ 20,000 $ 19,900 $ (19,900) $ 100 lvlairtan ca-Ev uses - 154,000 161,942 (161,942) (7,942) I rsuanoe Clairrs a-d E>pe uses - - - - - Deprecialicn - - - - - Cbpital Cttlar - - - - - Total q)ertng Bpa- es $ - $ 174,000 $ 181,842 $ (181,842) $ (7,842) CfDEPAllNGINMVE(l-CAS) $ - $ (30,000) $ 101,353 $ 101,353 $ 131,353 f A11NGM BAES(B4'BEES) Inestrrert Income $ - $ - $ (942) $ (942) $ (942) Tdai fbn-q�ing des(B penses) $ - $ - $ (942) $ (942) $ (942) Income(Loss)before CcrtnbLbcns and Tra-das $ - $ (30,000) $ 100,411 $ 100,411 $ 130,411 Capital 03tibu als $ - $ - $ - $ - $ - Tralsfas In(OA) - - (59,263) (56,263) (59,263) Charges infBtPssets $ - $ (30,000) $ 41,148 $ 41,148 $ 71,148 Ricr Yeer ML strrerts $ - $ - $ (277) $ (277) $ (277) f EFASSETS-BEOMll3 $ - $ - $ (122,165) $ (122,165) $ 122,1 NET ASSETS-END W, $ - $ (30,000) _L_L81,294 $ (81,294) $ 51,294 See a000rrp"ng notes to the bmc firencial statarerts 141 Qty of Pasco Schedule of Operations-Budget to Actuals Equipment Rental Replacement Fund Business-type For the Year Ended Decernber 31,2006 Original Final Variance to Varianoeto Budget Budget Actual Original Budget Final Budget OPERATING REVENUES Charges for Services-Inte real $ $ $ 171,540 $ 171,540 $ 171,540 Charges for Services-Other - - - - Total Operating Revenues $ $ $ 171,540 $ 171,540 $ 171,540 OPERATING EXPENSES Operating Expenses $ - $ - $ - $ - $ - Niaintenance Expenses - - - - - Insurance Claims and Expenses - - - - Depreciation 264,018 (264,018) (264,018) Capital Outlays - 165,537 (165,537) (165,537) Total Operating Expenses $ $ - $ 429,555 $ (429,555) $ (429,555) OPERATING INCOIVE(LOSS) $ $ - $ (258,015) $ (258,015) $ (258,015) NON-OPERATING REVENUES(EXPENSES) Investmentlncome $ - $ - $ 51,911 $ 51,911 $ 51,911 Total Non-Operating Revenues(Expenses) $ - $ - $ 51,911 $ 51,911 $ 51,911 Non-Revenues Interfund Loan Repayments $ - $ - $ - $ - $ Income(Loss)before Contributions and Transfers $ - $ - $ (206,104) $ (206,104) $ (206,104) Capital Contributions $ - $ - $ - $ - $ Transfers In(Out) - - - - Sale of Assets - - - - Total Capital Contributions $ - $ - $ - $ - $ Changes in Net Assets $ - $ - $ (206,104) $ (206,104) $ (206,104) Prior YearAdjusG»ents $ - $ - $ 163,608 $ 163,608 $ 163,608 Assets Purchased in Other Funds - - 28,919 28,919 28,919 NEI-ASSETS-BEGINNING $ $ - $ 2,275,019 $ 2,275,019 $ 2,275,019 NETASSETS-ENDING $ $ - $ 2,261,442 $ 2,261,442 $ 2,261,442 See accorrpanying notes to the basic finanaal statements. 142 Qty of Pasco Schedule of Operations-Budget to Actuals Water/Sevf-Fund For the Year Ended December 31,2006 Original Final Varianceto Varianceto Budget Budget Actual Original Budget Final Budget OPERATING REVENUES Charges for Services-Other $ 12,706,000 $ 12,706,000 $ 13,730,957 $ 1,024,957 $ 1,024,957 Miscellaneous Revenue 1,515,250 1,515,250 2,486,668 971,418 971,418 Total Operating Revenues $ 14,221,250 $ 14,221,250 $ 16,217,625 $ 1,996,375 $ 1,996,375 OPERATING EXPENSES Personal Service $ 2,538,880 $ 2,538,880 $ 2,301,789 $ 237,091 $ 237,091 Supplies 582,500 582,500 282,581 299,919 299,919 Other Services and Charges 3,170,740 3,170,740 3,140,209 30,531 30,531 Capital Outlays - - - - - Taxes 2,063,500 2,063,500 1,905,927 157,573 157,573 Maintenance Expenses - - - - - Depreciation - - 3,818,741 (3,818,741) (3,818,741) Total Operating Expenses $ 8,355,620 $ 8,355,620 $ 11,449,247 $ (3,093,627) $ (3,093,627) OPERATING INCOME(LOSS) $ 5,865,630 $ 5,865,630 $ 4,768,378 $ (1,097,252) $ (1,097,252) NON-OPERATING REVENUES(EXPENSES) Investment Irxo>1e $ 351,000 $ 351,000 $ 571,321 $ 220,321 $ 220,321 Proceeds from Debt Issuance - - - - - Farmland Rentals 450,000 450,000 626,292 176,292 176,292 Interest Expense (1,381,250) (1,381,250) (1,495,401) (114,151) (114,151) Amortization Expense - - (43,430) (43,430) (43,430) Miscellaneous Non-Operating Revenues 26,000 26,000 23,211 (2,789) (2,789) Total Non-Operating Revenues(Expenses) $ (554,250) $ (554,250) $ (318,007) $ 236,243 $ 236,243 Income(Loss)before Contributions and Transfers $ 5,311,380 $ 5,311,380 $ 4,450,371 $ (861,009) $ (861,009) Capital Contributions $ - $ - $ 3,625,332 $ 3,625,332 $ 3,625,332 Transfers In(Out) 85,000 85,000 (123,964) (208,964) (208,964) Changes in Net Assets $ 5,396,380 $ 5,396,380 $ 7,951,739 $ 2,555,359 $ 2,555,359 Prior Year Adjustments $ - $ - $ (269,689) $ (269,689) $ (269,689) NETASSETS-BEGINNING $ 14,319,955 $ 14,319,955 $ 91,855,257 $ 77,535,302 $ 77,535,302 NET ASSETS-ENDING $ 19,716,335 $ 19,716,335 $ 99,537,307 $ 79,820,972 $ 79,820,972 See accompanying notes to the basic financial statements. 143 THIS PAGE LEFT INTENTIONALLY BLANK 144 IVK.AG Na 0292 aTYOFPA8001 VMSHNGTON SICHEX E 8-REAL AND PERSONAL PROPERTY TAJCS (ALL TAXES JTU:U EO FUNDS) For the Year Ended Dam ber 31,2006 TAXES TAX TAXES TAXES FU1\D REMVABLE PATE LEVIED TAXES NET TAX REC. NO. FU\DNMiE 1/1/2006 /$1,000 REPCRrYEAF OCLLEC'TID ADJLST. 12/31/20N 010 General Find $310,613 $2.3912 $4,754,526 $4,760,618 $97 $304,618 271 93 GAc Center Bands 5,303 0.0000 - 2,819 $(236) $2,248 272 Firelibra Bcrds 13,302 0.1002 175,469 176,888 $(271) $11,612 273 2002 UTGO Bonds 26,135 0.2500 384,424 384,637 $(402) $25,520 TOTAL TAXES $355,353 $27414 $5,314,419 $5,324,962 $(812) $343,998 * Receivable array is reflect balance after Dacw per 2006 tax payrrents. This arar t agrees wth the Tax Account t Balance RqDort printed on 01/04/07 from R-"in Ca.rtyTreasLrEes Office. 145 MCAG NO.0292 CITY OF PASCO,WASHINGTON SCHEDULE 9- LONG-TERM DEBT-L.I.D.ASSESSMENTS Year Ended December 31,2006 FINAL ORIGINAL ISSUE MATURITY INTEREST ISSUE ID. NO.AND DESCRIPTION PURPOSE DATE DATE RATE AMOUNT BONDS: 253.12 2001 C.L.I.D. 135 Bonds 582.41.73 11/02 11/12 5.75 536,975 536,975 NOTES: 263.63 LID 125 Note 582.41.73 12/00 12/07 6.00% 80,960 263.63 LID 138 Note 581.20.77 12/05 12/05 5.00% 57,662 263.63 LID 139 Note 581.20.77 12/02 12/17 5.00% 405,375 263.63 LID 140 Note 581.20.77 12/03 12/18 4.50% 71,943 263.63 LID 901 Note 582.41.73 12/02 12/12 4.00% 45,700 661,640 TOTAL L. I.D.ASSESSMENT DEBT $1,198,615 146 BEGINNING AMOUNT ENDING UNMATURED AMOUNT DUE THIS UNMATURED DEBT ISSUED PERIOD DEBT LID 135 Bonds 275,000 0 85,000 190,000 275,000 0 85,000 190,000 LID 125 Note 26,800 $ 0 $ 6,800 $ 20,000 LID 138 Note 30,662 0 4,962 25,700 LID 139 Note 15,100 0 10,700 4,400 LID 140 Note 15,200 0 7,600 7,600 LID 901 Note 8,950 0 2,900 6,050 96,712 0 32,962 63,750 $ 371,712 $ 0 $ 117,962 $ 253,750 147 MCAG NO 0292 CITY OF PASCO,WASHINGTON SCHEDULE 9-LONG-TERM DEBT-G.O.AND REVENUE Year Ended December 31,2006 FINAL ORIGINAL ISSUE MATURITY INTEREST ISSUE DESCRIPTION PURPOSE DATE DATE RATE AMOUNT G.O.DEBT Councilmanic G.O.Bonds 251.11 2001 L.T.G.O.Bond 594.74.63 3/1/2001 1211/2020 4.25-5.05% 6,900,000 251.16 2002 LTGO&Refunding Bond 594.74.63 10/1/2002 4/1/2022 2-4.7% 3,635,000 Total Councilmanic G.O.Bonds $10,535,000 Voted G.O.Bonds 251.12 1999 G.O.B.Library 594.73.62 10/1/1999 1211/2019 5.2-5.6% 1,700,000 251.12 2002 UTGO Refunding Bond 594.74.63 11/1/2002 1211/2013 2.5-4.0% 3,155,000 Total Voted G.O.Bonds $4,855,000 TOTAL G.O.DEBT $15,390,000 Other Debt 263.81 TRAC Loan 12/1/1997 1211/2014 4.5-5.5% $1,197,931 263.81 Port of Pasco Airport Fire Bldg 7/1212006 7/1212016 4.00% $120,000 263.81 State L.O.C.AL.Bond-Fire Truck 594.74.63 2/1/2000 6/1/2009 5.72% 225,000 263.81 State L.O.C.AL.Bond-Animal Control 594.74.63 11/1/2001 1211/2016 6.24% 275,500 263.81 State L.O.C.AL.Bond-Patrol 594.74.63 12/112004 1211/2008 3.19% 161,640 Total Other Debt $1,980,071 UTILITY DEBT 263.82 P.W.T.F Loan#89036-Road 68 Water Tank 594.34.63 7/24/1989 7/24/1909 3.0% $1,245,000 263.82 State Revolving Loan Fund 594.35.63 5/31/1994 10/31/2015 1.00/0 23,700,000 263.82 P.W.T.F.Loan#95025-Sewer Plant 594.35.63 6130/1995 6/30/2015 1.0% 812,700 263.82 P.W.T.F.Loan#95026-Road 100 Water Res. 594.34.63 6130/1995 6 130/2015 1.0% 2,687,300 252.11 1998 W/S Revenue Bonds 594.35.63 9/15/1998 6/1/2018 5.56.45% 2,255,000 252.15 1998 W/S Refunding Bonds 594.34.63 9/15/1998 611/2014 3.8-4.6% 6,725,000 252.11 1998 W/S Revenue Bonds 594.35.63 9/15/1998 6/1/2014 3.7-4.8% 1,515,000 252.11 1999 W/S Revenue Bonds 594.35.63 10/7/1999 9/1/2016 4.10-5.8% 985,000 263.82 P.W.T.F.Loan#00691043 594.35.63 7/5/2000 6130/2020 1.0% 1,890,000 252.11 2001 W/S Revenue Bonds 594.35.63 9/1/2001 9/1/2016 3.54.85% 995,000 252.11 2002 W/S Revenue Bonds 594.35.63 10/1/2002 12/112022 2.0-4.7% 5,945,000 252.11 2005 W/S Revenue Bonds 594.35.63 1215/2005 1215/2025 3.5-4.25% 4,400,000 TOTAL UTILITY DEBT $53,155,000 TOTAL LONG-TERM DEBT $70,525,071 148 BEGINNING AMOUNT ENDING UNMATURED AMOUNT DUE THIS UNMATURED DESCRIPTION DEBT ISSUED PERIOD DEBT G.O.DEBT Councilmanic G.O.Bonds 2001 L.T.G.O.Bond 6,315,000 0 305,000 6,010,000 2002 LTGO&Refunding Bond 3,355,000 0 190,000 3,165,000 Total Councilmanic G.O.Bonds $9,670,000 $0 $495,000 $9,175,000 Voted G.O.Bonds 1999 G.O.B Library 1,400,000 0 100,000 1,300,000 2002 UTGO Refunding Bond 2,580,000 0 290,000 2,290,000 Total Voted G.O.Bonds $3,980,000 _$0 $390,000 $3,590,000 TOTAL G.O.DEBT $13,650,000 $0 $885,000 $12,765,000 Other Debt TRAC $742,759 $0 $70,345 $672,414 Port of Pasco Airport Fire Bldg 0 120,000 4,102 115,898 State L.O.C.A.L.Loan 104,876 0 24,044 80,832 State L.O.C.A.L.Loan 223,523 0 11,958 211,565 State L.O.C.A.L.Loan 122,965 0 39,699 83,266 Total Other Debt $1,194,123 $120,000 $150,148 $1,163,975 UTILITY DEBT PWTF Loan#89036 $246,244 $0 $61,562 $184,682 State Revolving Loan Fund 18,922,950 0 1,066,907 17,856,043 PWTF Loan#95025 430,113 0 43,011 387,102 PWTF Loan#95026 1,073,754 0 107,376 966,378 1998 W/S Revenue Bonds 1,700,000 0 85,000 1,615,000 1998 W/S Refunding Bonds 5,805,000 0 535,000 5,270,000 1998 W/S Revenue Bonds 615,000 0 100,000 515,000 1999 W/S Revenue Bonds 685,000 0 50,000 635,000 P.W.T.F.Loan#00691043 1,667,106 0 111,140 1,555,966 2001 W/S Revenue Bonds 795,000 0 60,000 735,000 2002 W/S Revenue Bonds 5,300,000 0 235,000 5,065,000 2005 W/S Revenue Bonds 4,400,000 0 190,000 4,210,000 TOTAL UTILITY DEBT $41,640,167 $0 $2,644,996 $38,995,171 TOTAL LONG-TERM DEBT $56,484,290 $120,000 $3,680,144 $52,924,146 149 MCAG NO.0292 CITY OF PASCO,WASHINGTON SCHEDULE 10-LIMITATION OF INDEBTEDNESS For the Year Ended December 31,2006 Property Valuation for 2006 Taxes' $2,313,853,466 GENERALPURPOSES Limit of 2.5% of Assessed Value $57,846,337 Councilmanic: Capacity(1.5% of Assessed value) 34,707,802 Less: G.O. Bonds Outstanding $9,175,000 State LOCAL Loans $375,663 T.R.A.C.Obligation 672,414 Port of Pasco Airport Fire Bldg 115,898 Compensated Absences 1,411,806 11,750,781 (11,750,781) Available Unvoted -Approved Capacity $22,957,021 Voter-Approved: Capacity(1.0% of Assessed Value) $23,138,535 Less: G.O. Bonds Outstanding $3,590,000 3,590,000 (3,590,000) Available Voter-Approved Capacity $19,548,535 Remaining Capacity for General Purposes $42,505,556 UTILITY PURPOSES Voter-Approved: Capacity(2.5% of Assessed Value) $57,846,337 Available Utility Capacity $57,846,337 OPEN SPACE AND PARK FACILITIES Voter-Approved: Capacity(2.5% of Assessed Value) $57,846,337 Available Open Space and Park Facilities Capacity $57,846,337 TOTAL AVAILABLE DEBT CAPACITY $ 158,198,230 From Franklin County 2006 Assessments for 2007 Tax Collections Book 150 WAG NQ 0292 CITY OF PASCg VA%INGTON SCFEDULE 12-OPERMON OF IMIESTNENTS-ALL FUNDS For The Year Ended December 31,200E I LAVES WENT INVESTMENTS I NVESTK/ENT FUND FUND BALANCE (AT COSTS) BALANCE NO. DESCRIPTION 1/1/2006 ACQUIRED UQUIDATED 12/31/2006 620 Fire Pension 3,361,854 410,905 500,000 3,272,759 650 SArplusCash 38,656,078 33,184,928 39,201,586 32,639,420 TOTAL $ 42,017,932 $ 33,595,833 $ 39,701,586 $ 35,912,179 151 MCAG NO 0292 CITY OF PASCO,WASHINGTON SCHEDULE 13 -CASH AND INVESTMENTS - SCHEDULE 14 -SHORT-TERM INTEREST-BEARING DEBT - SCHEDULE 15 -CONTRIBUTIONS FOR EMPLOYEE BENEFITS - For The Year Ended December 31, 2006 ALL MONEY HELD UNEXPENDED FOR REDEMPTION OF PROCEEDS OF ALL OTHER LONG-TERM DEBT BOND ISSUES MONIES CASH AND INVESTMENTS Cash and Deposits $ 644,178 $ 0 $ 14,689,600 Federal Securities 0 0 0 Federal Agency Securities 0 0 18,871,860 Other Securities 0 0 2,781,509 $ 644,178 $ 0 $ 36,342,969 SHORT-TERM INTEREST-BEARING DEBT Balance as of Beginning of Year $ 0 Balance as of End of Year $ 0 CONTRIBUTIONS FOR EMPLOYEE BENEFITS Retirement Programs To Federal Social Security System $ 945,316 To State Administered Employee Retirement System 587,686 To Locally Administered Employee Retirement System 0 For Commerical Annuity Plans 0 Direct Pension Payments 144,814 TOTAL ALL RETIREMENT PROGRAMS $ 1,677,816 Insurance Programs For Health, Hospital, Dental and Disability Insurance-Self-Insured $ 2,028,921 For Other Dental Insurance - For Life Insurance 13,361 For Workmen's Compensation Insurance 304,882 For Unemployment Compensation - Self-Insured 53,392 TOTAL ALL INSURANCE PROGRAMS $ 2,400,556 152 NDGM a292 CITYCFPA3CQ VV*HNGTCN 90-ED-LE16-D*EN3R1ESCFFEERLAAA9 6 Fo"ftYea EiW DamTiDff 31,2706 Gata1 FecbA Qua- 6gfrdhaEs Pass-Mmrjh iaficr QFE4 Idatffica6on Pall mr h Cared RajEmTrtle Nlrr w N j*w Awc�. Awci. Tctd Qwat et cf J,btioa B,mFcmJaGurt ftrmbcsTaRFome) 16579 F97-374014 $ - $ 31,782 $ 31,782 GineUcbmOmpa-stm(STCPFamIaC3atM) 165763 FOE0103066 - 3533? 3Q332 Ei dB,fmNbradIdoE)P6JAmmGat(MID 16738 MDAX1713 - 6038 QC08 8114 Ruf\/-4 Patrashp 16607 2DO&R f XM33357 - 9451 5454 $ - $ 77,636 $ 77,606 US Caairret cf His m&UIEn D--Agmul CemmntyD3Agnul Bock Gat 14.218 897-N G5c= $ - $ 645114 $ K114 OmiTu-ityD)Aq n3lBockGatRajanInnTe 14.218 - 101,438 101,438 Tctd US D3peM�ofH sng&UtenD--Agxret $ - $ 74Q54 $ 746,54 US C--TatTat cf F heM&HjTm Siaas IrdredAnad; aoe cf Pgrg&La-gTemC--Te Fact(Ire(rrirect) 93044 TAM391(PA) $ 12,634 $ - $ 12,654 939VHA1hSiBmrg(rdred) 93044 1Q743 - 1Q743 Tctd US Dqi cf F3dth&Krran93,ices IrniredA ca $ 25407 $ - $ 25407 US amtn3t cf Trarwatabrn PassedhurhTrakSJ44mrr cn CU ETlims 20601 NEME $ 5114 $ - $ 3,114 Ri\e I-frmind GA MleJ OT-a]6T#-eds 21 1 Rio Z725 Z725 Traffic 9#eLyCtxrrr mai-GOT(rdred) M602 J25W 3,830 Q&D Tctd CFEAN ntEr $ QEW $ - $ Q659 Rb3ssdthu�M3 eDxahYetcfTra-93aA HgwVREmr-g&(am.dcn-Rbai 3.&MAe 9g-d-05-5-24 212 6 STRL&351E3(C $ 95627 $ - $ 9567 HjiAW Rarirg&QashctimBdnB\,dVVdnr-g-Road 05-aM 2126 SrR&35AC)03) 15531 - 155321 Tctd CFEANite' 212:6 $ 245948 $ - $ 21$948 Tctd US Cat cfToWotEtcn $ 255607 $ - $ 255677 TOM-F831PLA69SWCE $ 282,014$ 824,158 $ 1,100172 liea=pTyrx,3rriestotBSd-EcUecf 6paiftuEscf Fbt d Aw&t ae mirteo patcfthssliEUe 153 MGoGNa IM Cr YCFW=V09lhGICN 90-EM1E16-SrMEAPDLOCYLRN*13AL,8fflSrAo LE FrU-eYeErBzbdCamrUa-31,2706 Gaafial Fectrd Qher BPMJUM Pttr,MT cgiGa-tx CFO4 Ictrtificdim Pm--Tm,cl ❑red R cffnTrtle Nxrba- N.rrba- Anab Ana& Tcd Pa3ro9tnd Dsbict: D�fF-Rdnb rsaTet Irteiard Pgr-qjPgeaTet $ 71,7 $ - $ 4778 V\tdirr#m 9de Ohre t cf Tram Tr2 ficS ftO missm-Ra± EcpMiE t $ Q-U $ - $ 9-/E2 Trafic,'IWOmnmcn-DdAtamFb -EcpMet $x.16 - x276 $ 17,968 $ - $ 17,9M V\tEhrc#mS eTra mInyoknetRind HgvajRa-tirg&Oj-EhWm-Ar&AahFdROussr-g-S-I1 STRECEE)7(001) $ 1,C31,!E - $ 1,C81,532 9&174(003}1 Fia-W nCiaxiy IrteiaidA2mTetfa-CjVEfimcfTrARite $ - $ 18800000 $ 18g00D VEirrtm9AeDjl cfa mErna Trail;&EururicDMgaTet (3\/ALpd3teG3at LO 172 $ 1Q000 $ - $ 1Q00D Ga-tfcrBB±dI9adrxnLpjab 0664M61 8�00D - M00D $ woo $ - $ MODD BErtmAF inatAa-mPhmOjAcn RfiDC3at 214, FX-0081 $ 1,594 $ - $ 1,,r94 V\tEhr dmPEsodabm cf 9-9iffsa-d RiioeCh& TrdficS f Gat B:I}130 WDW $ 1,275 $ $ 1,275 TrdficakyGat MN-13063000 50D - 970 $ 1,775 $ $ 1,775 D-poatrret cf H)J h&Hxrw 9aices MRd-cqJrd PatdpebmC3kat PyOG11M:2 $ 1,463 - $ 1,463 TOWSWE&LOCALA69SMM $ 1,171}16D $ 1M00D $ 1,a3Q160 11aa3nTpffyr-gn3Estc)ftSdT=d_lecf 9Aea-dLed P69AErmae mir"pat cftisstEdJe 154 NOTES TO THE SCHEDULE OF FEDERAL AWARDS (SCHEDULE 16) (AND STATE/LOCAL FINANCIAL ASSISTANCE) NOTE 1 - Basis of Accounting The Schedule of Financial Assistance is prepared on the same basis of accounting as the City's financial statements. The City uses the modified accrual basis. NOTE 2 - Program Costs The amounts shown as current year expenditures represent only the federal, state or local funding source portion of the program costs. Actual program costs, including the City's portion, may be more than shown. NOTE 3 - Revolving Loan - Program Income The City has a revolving loan program for low-income housing. Under this federal pass-through grant, repayments to the City are considered program revenues (income) and loans of such funds to eligible recipients are considered expenditures. No loan funds were disbursed in 2006 for the rehab loan program. The amount of principal and interest received in loan repayments for the year was $95,504.92. The City also participates in the HUD Home Program for low-income individuals, which is administered through the City of Richland. Under this federal pass-through grant, the sale of low-income homes by the City is considered program revenues (income) and costs of building homes and purchase of properties are considered expenditures. This program is audited through the City of Richland. 155 MCAG NO. 0292 CITY OF PASCO, WASHINGTON SCHEDULE 19 - LABOR RELATIONS CONSULTANTS For the Year Ended December 31, 2006 Has your government engaged labor relations consultants? X Yes No If yes, please provide the following information for each consultant(s): Name of Firm: The Wesley Group Name of Consultant: Roy Wesley Business Address: P.O. Box 7164 Kennewick, WA 99336-0616 Amount Paid To Consultant During Fiscal Year: $26,863.31 Terms And Consitions, As Applicable, Including: Rates (E.G., Hourly, Etc.): $65 per hour Maximum Compensation Allowed: Duration Of Services: Various throughout the year. Services Provided: Union Bargaining Assistance Certified Correct this 30th day of May, 2007 to the best of my knowledge and belief: Signature � P r In u.314ae N m A.9 rjr-r 156 THIS PAGE INTENTIONALLY LEFT BLANK 157 CITY OF PASCO,WASHINGTON GENERAL GOVERNMENTAL REVENUES BY SOURCE AND GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION* Last Ten Fiscal Years Table 1 2006 2005 2004 2003 2002 REVENUES Taxes $ 23,361,504 $ 22,195,616 $ 20,490,847 $ 18,140,244 $ 17,993,581 Licenses and Permits 2,116,234 2,338,294 2,337,476 1,878,727 1,520,272 Intergovernmental 10,802,165 3,494,011 2,627,953 3,158,428 3,493,729 Charges for Service 4,388,138 4,225,579 3,887,480 3,257,188 2,913,321 Fines and Forfeitures 828,758 746,043 740,100 757,451 677,533 Miscellaneous 2,803,988 3,146,055 2,453,269 2,397,595 3,214,413 Operating Transfers-In 5,864,429 5,321,850 4,318,044 2,066,750 3,419,055 TOTAL REVENUES $ 50,165,216 $ 41,467,448 $ 36,855,169 $ 31,656,383 $ 33,231,904 EXPENDITURES General Government $ 4,284,489 $ 4,195,820 $ 3,712,845 $ 3,235,752 $ 3,388,433 Security of Persons and Property 16,334,570 14,208,370 13,357,392 12,377,102 10,353,456 Physical Environment 1,608,581 1,443,870 1,246,408 919,853 1,172,222 Transportation 1,132,745 1,103,984 1,075,691 874,087 764,055 Culture and Recreation 3,827,080 3,464,143 3,433,891 5,480,504 2,697,296 Economic Environment 680,863 647,534 461,338 463,720 449,340 Mental and Physical Health 44,242 45,044 46,392 42,573 5,916 Capital Outlay 14,187,562 9,806,753 7,599,129 5,480,504 5,768,286 Debt Service 1,801,973 1,820,083 1,787,740 2,035,176 2,037,386 Operating Transfers-Out 5,666,627 4,483,428 3,186,322 1,997,029 2,753,902 TOTAL EXPENDITURES $ 49,568,732 $ 41,219,029 $ 35,907,148 $ 32,906,300 $ 29,390,292 Includes General,Special Revenue,and Debt Service Funds. Prior years restated to reflect the elimination of the Special Assessment Fund as per Statement No.6 of the Governmental Accounting Standards Board. Source: City of Pasco,Washington Annual Reports for Prior Years. 158 2001 2000 1999 1998 1997 $ 15,044,749 $ 14,022,599 $ 11,982,112 $ 11,576,262 $ 11,142,259 1,023,159 798,717 650,009 548,446 393,942 2,451,191 2,565,129 2,496,665 2,499,159 2,415,125 3,010,756 2,024,422 1,798,648 1,573,261 1,631,640 506,964 429,802 373,862 381,147 450,718 2,723,319 1,492,169 2,316,848 2,891,608 1,963,732 3,221,304 1,033,842 1,102,742 595,268 358,544 $ 27,981,442 $ 22,366,680 $ 20,720,886 $ 20,065,151 $ 18,355,960 $ 3,230,151 $ 2,845,629 $ 2,890,943 $ 2,651,961 $ 2,410,603 9,588,907 8,578,223 8,294,488 7,507,352 7,054,178 986,228 1,003,261 930,727 829,023 1,11 1,765 685,779 701,022 912,751 891,130 889,702 2,655,314 2,205,837 2,045,480 2,420,196 2,179,211 392,898 655,084 426,215 477,252 580,213 6,892 3,604 6,095 3,708 4,114 2,479,093 1,972,121 2,866,324 1,784,331 1,239,988 5,810,094 1,714,489 2,815,945 1,262,168 1,446,515 2,194,853 2,007,413 1,713,689 1,645,877 248,627 $ 28,030,209 $ 21,686,683 $ 22,902,657 $ 19,472,998 $ 17,164,916 159 CITY OF PASCO,WASHINGTON PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Table 2 2006 2005 2004 2003 PRIOR YEAR OUTSTANDING DELINQUENT TAXES $ 355,354 $ 281,787 $ 250,295 $ 253,176 CURRENT TAX LEVIED General Levy $ 4,754,526 $ 4,301,624 $ 3,827,462 $ 3,500,021 Debt Service Levy 384,424 376,404 378,205 371,935 L.I.D.Guaranty Levy 0 0 0 0 Road Levy 0 0 0 0 Fire/Library Levy 175,469 180,589 185,920 154,051 County Treasurer's Adjustment (812) 67,540 12,518 11,197 TOTAL CURRENT TAX LEVIED $ 5,313,607 $ 4,926,157 $ 4,404,105 $ 4,037,204 TAX COLLECTED Current Taxes Collected $ 5,113,807 $ 4,674,325 $ 4,210,471 $ 3,868,786 Delinquent Taxes Collected 211,155 178,265 162,142 171,299 TOTAL TAX COLLECTED $ 5,324,962 $ 4,852,590 $ 4,372,613 $ 4,040,085 OUTSTANDING DELINQUENT TAXES $ 343,998 $ 355,354 $ 281,787 $ 250,295 Percent of Current Levy Collected 96.24% 94.89% 95.60% 95.83% Percent of Total Collected to Levy 100.21% 98.51% 99.28% 100.07% Percent of Delinquent Taxes to Levy 6.47% 7.21% 6.40% 6.20% Source: Franklin County Treasurer's Office Tax Roll for 2006 160 2002 2001 2000 1999 1998 1997 $ 284,685 $ 243,387 $ 243,387 $ 195,438 $ 206,170 $ 195,526 $ 3,452,931 $ 3,142,355 $ 2,923,906 $ 2,198,741 $ 2,040,392 $ 1,950,025 411,418 410,991 413,955 315,381 392,746 391,408 0 0 0 0 0 0 0 0 0 0 0 0 125,570 91,002 106,203 0 0 0 ( 1,291 ) 9,355 6,073 19,134 ( 618 ) 0 $ 3,988,628 $ 3,653,703 $ 3,450,137 $ 2,533,256 $ 2,432,520 $ 2,341,433 $ 3,839,342 $ 3,471,952 $ 3,278,572 $ 2,370,484 $ 2,348,527 $ 2,242,829 180,795 140,453 127,118 114,823 94,725 87,960 $ 4,020,137 $ 3,612,405 $ 3,405,690 $ 2,485,307 $ 2,443,252 $ 2,330,789 $ 253,176 $ 284,685 $ 287,834 $ 243,387 $ 195,438 $ 206,170 96.26% 95.03% 95.03% 93.57% 96.55% 95.79% 100.79% 98.87% 98.71% 98.11% 100.44% 99.55% 6.35% 7.79% 8.34% 9.61% 8.03% 8.81% 161 CITY OF PASCO ASSESSED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS TABLE 3 RATIO OF TOTAL TOTAL ASSESSED ASSESSED TO TOTAL YEAR REAL PERSONAL UTILITIES VALUATION ESTIMATED 1997 $ 659,439,804 $ 67,671,736 $ 44,804,165 $ 771,915,705 100% 1998 $ 691,388,908 $ 71,662,167 $ 37,311,745 $ 800,362,820 100% 1999 $ 771,740,101 $ 71,270,222 $ 37,683,914 $ 880,694,237 100% 2000 $ 816,593,971 $ 96,120,203 $ 38,900,998 $ 951,615,172 100% 2001 $ 876,656,716 $ 105,259,330 $ 49,983,958 $ 1,031,900,004 100% 2002 $ 968,149,205 $ 109,023,302 $ 49,983,958 $ 1,127,156,465 100% 2003 $ 1,185,853,800 $ 64,831,531 $ 53,394,900 $ 1,304,080,231 100% 2004 $ 1,608,203,667 $ 116,704,391 $ 54,917,281 $ 1,779,825,339 100% 2005 $ 1,838,147,975 $ 81,762,754 $ 52,699,742 $ 1,972,610,471 100% 2006 $ 1,685,326,737 $ 85,759,899 $ 54,276,830 $ 1,825,363,466 100% SOURCE: FRANKLIN COUNTY ASSESSORS OFFICE 162 THIS PAGE INTENTIONALLY LEFT BLANK 163 CITY OF PASCO,WASHINGTON PROPERTY TAX RATES-COMPUTATION OF DIRECT AND OVERLAPPING GOVERNMENTS(PER$1,000 OF ASSESSED VALUE) Last Ten Fiscal Years Table 4 CITY OF PASCO TAX RATES: 2006 2005 2004 2003 General Levy $2.3912 $2.4157 $2.6617 $2.6839 Debt Service Levy 0.2500 0.2748 0.3452 0.3812 Fire/Library Levy 0.1002 0.1142 0.1455 0.1331 SUBTOTAL CITY OF PASCO TAX RATES 2.7414 2.8047 3.1524 3.1982 OTHER GOVERNMENTAL TAX RATES: State 2.6480 2.8387 3.1867 2.8664 County 1.7489 1.7917 1.9035 2.0590 County-TRAC Bond 0.1059 0.1140 0.1574 0.1214 County-Court House Remodel 0.2424 0.2689 0.3384 0.3515 Pasco School District Maint 6.5151 6.5689 6.6254 6.4838 Port of Pasco 0.3993 0.4099 0.4357 0.4447 SUBTOTAL OTHER TAX RATES 11.6596 11.9921 12.6471 12.3268 TOTAL DIRECT AND OVERLAPPING TAX RATES $ 14.4010 $ 14.7968 $ 15.7995 $ 15.5250 Source: Franklin County 164 2002 2001 2000 1999 1998 1997 $3.0634 $3.0434 $3.0710 $2.4963 $2.5450 $2.5265 0.4788 0.5017 0.5479 0.4456 0.6103 0.6192 0.1203 0.0909 0.1143 0 0 0 3.6625 3.6360 3.7332 2.9419 3.1553 3.1457 3.0429 3.0351 3.2864 3.4922 3.5470 3.6538 2.0600 2.0338 2.0493 2.0601 2.2660 2.1489 0.1561 0.1888 0.1888 0.1888 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 6.2382 6.4330 6.7376 5.8521 5.7739 5.7158 0.4480 0.4500 0.4500 0.4500 0.4500 0.4500 11 .9452 12.1407 12.7121 12.0432 12.0369 11.9685 $ 15.6077 $ 15.7767 $ 16.4453 $ 14.9851 $ 15.1922 $ 15.1142 165 CITY OF PASCO, WASHINGTON SPECIAL ASSESSMENTS COLLECTIONS Last 10 Fiscal Years Table 5 Assessments Ratio of Outstanding Additions Collected Collections Outstanding Assessments and Total During to Total Assessments Year January 1, Adjustments Assessments Year Assessments December 31, 1997 2,912,247 1,974,113 4,886,360 566,875 11.60% 4,319,485 1998 4,319,485 1,776,133 6,095,618 984,730 16.15% 5,110,888 1999 5,110,888 1,981,337 7,092,225 960,424 13.54% 6,131,801 2000 6,131,801 1,041,652 7,173,453 1,063,665 14.83% 6,109,788 2001 6,109,788 (507,141) 5,602,647 1,030,404 18.39% 4,572,243 2002 4,572,243 (81,609) 4,490,634 1,637,272 36.46% 2,853,362 2003 2,853,362 962 2,854,324 774,096 27.12% 2,080,228 2004 2,080,228 92,423 2,172,651 671,723 30.92% 1,500,928 2005 1,500,928 1,523,589 3,024,517 695,074 22.98% 2,329,443 2006 2,329,443 1,291,526 3,620,969 333,447 9.21% 3,287,522 166 CITY OF PASCO,WASHINGTON RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND BONDED DEBT PER CAPITA Last Ten Fiscal Years Table 6 Ratio of General Net Bonded Gross Debt Service Net Debt to Net Bonded Assessed Bonded Monies Bonded Assessed Debt Per Year Population(1) Value(2) Debt Available Debt Value Capita 1997 24,388 771,828,652 9,485,000 11,517 9,473,483 1.23% 388.45 1998 25,300 800,362,820 9,110,000 0 9,110,000 1.14% 360.08 1999 27,000 880,694,237 14,725,000 0 14,725,000 1.67% 545.37 2000 32,066 951,680,952 14,516,707 77,672 14,439,035 1.52% 450.29 2001 33,010 1,031,900,004 16,894,071 110,153 16,783,918 1.63% 508.45 2002 36,700 1,127,156,465 19,147,134 219,151 18,927,983 1.68% 515.75 2003 37,580 1,304,080,231 15,727,209 216,120 15,511,089 1.19% 412.75 2004 40,840 1,779,825,339 14,500,000 220,540 14,279,460 0.80% 349.64 2005 44,190 1,987,640,071 13,650,000 237,586 13,412,414 0.67% 303.52 2006 47,610 2,313,853,466 12,955,000 258,431 12,696,569 0.55% 266.68 Prior years restated to reflect the elimination of the Special Assessment Fund as per Statement No.6 of the Governmental Accounting Standards Board. Sources:(1)State of Washington Office of Financial Management (2)Franklin County Assesor's Office 167 CITY OF PASCO, WASHINGTON COMPUTATION OF LEGAL DEBT MARGIN For the Year Ended December 31, 2006 Table 7 Property Valuation for 2006 Taxes' $ 2,313,853,466 GENERALPURPOSES Limit of 2.5% of Assessed Value $ 57,846,337 Councilmanic: Capacity (1.5% of Assessed value) 34,707,802 Less: G.O. Bonds Outstanding $ 9,175,000 State LOCAL Loans $ 375,663 T.R.A.C. Obligation 672,414 State L.O.C.A.L. Loan 115,898 Compensated Absences 1,411,806 11,750,781 (1 1,750,781) Available Unvoted -Approved Capacity $22,957,021 Voter-Approved: Capacity(1.0% of Assessed Value) Less: $23,138,535 G.O. Bonds Outstanding $3,590,000 3,590,000 (3,590,000) Available Voter-Approved Capacity $19,548,535 Remaining Capacity for General Purposes $42,505,556 UTILITY PURPOSES Voter-Approved: Capacity(2.5% of Assessed Value) $57,846,337 Available Utility Capacity $57,846,337 OPEN SPACE AND PARK FACILITIES Voter-Approved: Capacity(2.5% of Assessed Value) $57,846,337 Available Open Space and Park Facilities Capacity $57,846,337 TOTAL AVAILABLE DEBT CAPACITY $ 158,198,230 From Franklin County 2006 Assessments for 2007 Tax Collections Book 168 CITY OF PASCO, WASHINGTON RATIO OF ANNUAL DEBT SERVICE FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years Table 8 Ratio of Debt Total Service to Total Debt General General Year Principal Interest Service Expenditures Expenditures 1997 625,019 550,518 1,175,537 12,715,935 9.24% 1998 375,000 519,628 894,628 13,696,994 6.53% 1999 2,085,000 252,543 2,337,543 17,776,489 13.15% 2000 433,293 440,274 873,567 16,232,065 5.38% 2001 4,798,136 475,368 5,273,504 20,805,457 25.35% 2002 4,536,937 417,406 4,954,343 19,875,264 24.93% 2003 734,925 674,588 1,409,513 22,006,727 6.40% 2004 825,000 456,985 1,281,985 22,827,760 5.62% 2005 850,000 438,936 1,288,936 23,507,486 5.48% 2006 885,000 556,273 1,441,273 25,531,707 5.65% 169 CITY OFPASCO,WASHINGTON REVENUE Bonn COVERAGE-WATERISEINER Last Ten Fiscal Years Table 9 Operating Gross Less Non Cash Net Available Total Operating Expenses and for Debt Annual Bond Year Revenue Qty Taxes Service Principal Interest Debt Service Coverage 1997 6,801,422 2,752,582 4,048,840 897,351 589,596 1,486,947 2.72 1998 7,413,618 3,113,259 4,300,359 961,866 513,353 1,475,219 2.92 1999 7,919,100 3,132,032 4,787,068 1,181,866 757,660 1,939,526 2.47 2000 8,467,714 4,768,198 3,699,516 585,000 724,343 1,309,343 2.83 2001 9,030,812 5,403,775 3,627,037 615,000 709,227 1,324,227 2.74 2002 9,920,076 4,701,840 5,218,236 690,000 673,279 1,363,279 3.83 2003 10,938,120 6,325,068 4,613,052 925,000 816,657 1,741,657 2.65 2004 14,877,698 6,877,976 7,999,722 990,000 838,329 1,828,329 4.38 2005 15,708,492 13,378,069 2,330,423 1,040,000 702,833 1,742,833 1.34 2006 16,217,625 5,724,579 10,493,046 749,276 527,954 1,277,230 8.22 170 CITY OF PASCO DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS TABLE 10 MEDIAN PER CAPITA AVE EARNINGS HOUSEHOLD MEDIAN SCHOOL UNEMPLOYMEN FISCAL POPULATION INCOME PER JOB INCOME AGE ENROLLMENT RATE YEAR (1) (2) (2) (6) (3) (4) (5) 1997 24,388 $ 18,195 $ 27,883 $ 35,789 Not Available 8,048 9.3% 1998 25,300 $ 18,361 $ 29,555 $ 37,217 28.40 8,392 10.0% 1999 27,000 $ 18,485 $ 29,124 $ 38,991 28.20 8,538 9.6% 2000 32,066 $ 19,259 $ 30,473 $ 40,375 28.10 8,850 9.5% 2001 33,010 $ 20,625 $ 30,598 $ 41,154 28.00 9,227 9.5% 2002 34,630 $ 20,760 $ 31,949 $ 40,900 28.19 9,785 5.5% 2003 37,580 $ 21,028 $ 33,865 $ 40,417 28.47 10,353 8.5% 2004 40,840 $ 20,971 $ 35,350 $ 40,511 27.40 11,038 8.6% 2005 44,190 $ 14,108 Not Available $ 41,176 27.00 11,828 9.0% 2006 47,610 Not Available Not Available $ 39,831 27.00 12,516 7.0% SOURCE: (1)State of Washington Office of Financial Management (2)Washington State University Northwest Income Indicators Project Report-Information is for Franklin County (3) Tri-Cities Industrial Development Council(TRIDEC) (4)Pasco School District(October Enrollment) (5)State of Washington Employment Security Department (Franklin County Annual Average) (6)Office of Financial Management Washington State Meadian Household Income Estimates by County 171 CITY OF PASCO NEW CONSTRUCTION, BANK DEPOSITS AND PROPERTY VALUE LAST TEN FISCAL YEARS TABLE 11 NEW CONSTRUCTION (1) BUILDING FISCAL PERMITS SINGLE MULTIPLE YEAR ISSUED DWELLING DWELLING OTHER TOTAL 1997 991 18,575,215 - 40,657,755 59,232,970 1998 1,186 22,005,761 124,800 27,117,923 49,248,484 1999 1,410 24,229,695 - 18,960,856 43,190,551 2000 1,586 28,072,891 - 20,493,167 48,566,058 2001 1,559 49,459,099 - 26,066,003 75,525,102 2002 2,116 97,082,539 181,355 16,092,621 113,356,515 2003 2,072 116,251,761 353,675 55,250,442 171,855,878 2004 2,331 149,827,797 47,338 98,727,552 248,602,687 2005 2,445 169,290,211 - 57,002,306 226,292,517 2006 2,246 137,857,562 - 64,422,671 202,280,233 BANK DEPOSITS (IN $1,000) (2) ASSESSED TAXABLE PROPERTY FOR THE FISCAL YEAR ENDED JUNE 30 VALUATION (IN $1,000) (3) 1997 $ 204,396 1997 771,916 1998 $ 196,078 1998 800,363 1999 $ 214,892 1999 880,694 2000 $ 253,363 2000 951,615 2001 $ 262,943 2001 1,031,900 2002 $ 264,776 2002 1,127,156 2003 $ 280,632 2003 1,304,080 2004 $ 294,457 2004 1,437,070 2005 $ 298,411 2005 1,779,825 2006 $ 290,520 2006 2,313,853 SOURCE: (1) City of Pasco Building Department (2) Federal Deposit Insurance Corporation Market Share Deposit Report (Tri-Cities commercial banks, excludes savings and loans and credit unions as of 6/2002) (3) Franklin County Assessors Office 172