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HomeMy WebLinkAbout2007 ACFR COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF PASCO, WASHINGTON FOR THE FISCAL YEAR ENDED DECEMBER 31 , 2007 CITY OF L PASCO qqqpp 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, 2007 INTRODUCTORY SECTION Letterof Transmittal ............................................................................................................. 1 Directoryof City Officials ............................................................................................................. 8 Directory of Management Team ................................................................................................. 9 OrganizationalChart ............................................................................................................. 10 FINANCIAL SECTION Independent Auditor's Report on Financial Statements .............................................. 11 Management's Discussion and Analysis .................................................................................... 21 Basic Financial Statements Government Wide Financial Statements Statement of Net Assets - Governmental and Business-Type Activities .......... 36 Statement of Activities - Governmental and Business-Type Activities .......... 38 Fund Financial Statements Balance Sheet and Reconciliation of the Balance Sheet to the Statement of Net Assets - Governmental Funds ........................................................... 40 Statement of Revenues, Expenses and Changes in Fund Balances - Governmental Funds .................................................................................... 42 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances to the Statement of Activities - Governmental Funds ....... 44 Statement of Revenues, Expenses and Changes in Fund Balances - Budget and Actual Comparison - Major Funds ............................................................ 46 Statement of Net Assets - Proprietary Funds ............................................... 50 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds .......................................................................................................................... 52 Statement of Revenues, Expenses and Changes in Net Assets in Detail - ProprietaryFunds ................................................................................................. 53 Statement of Cash Flows - Proprietary Funds ................................................ 54 Statement of Net Assets - Fiduciary Funds ............................................................ 56 Statement of Changes in Fiduciary Net Assets ................................................ 57 Notes to Financial Statements ................................................................................................. 59 Required Supplemental Information Combining and Individual Fund Statements and Schedules Combining Balance Sheet - Non-major Governmental Funds .................................... 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non-major Governmental Funds ............................................................ 112 Statement of Revenues, Expenses and Changes in Fund Balances - Budget and Actual Comparison - Non-major Special Revenue Governmental Funds ......... 119 Combining Statement of Net Assets - Internal Service Funds .................................. 141 i CITY OF PASCO TABLE OF CONTENTS Year Ended December 31, 2007 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets - Internal Service Funds ..................................................................... 142 Combining Statement of Cash Flows - Internal Service Funds ...................... 145 Schedule of Operations - Budget to Actual - Internal Service Funds ..................... 147 Schedule of Operations - Budget to Actual - Water/Sewer Fund ..................... 154 Additional Information Schedule of Real and Personal Property Taxes ....................................................................... 155 Schedule of Long-Term Debt - L.I.D. Assessments ........................................................... 156 Schedule of Long-Term Debt - General Obligation and Revenue ................................. 158 Schedule of Computation of Legal Debt Margin ........................................................... 160 Schedule of Operation of Investments - All Funds ........................................................... 161 Schedule of Cash and Investments .................................................................................... 162 Schedule of Short Term Interest Bearing Debt ........................................................................ 162 Schedule of Contributions for Employee Benefits ............................................................. 162 Schedule of Expenditures of Federal Awards Et State and Local Financial Assistance ......................................................................................................................... 164 Notes to Schedule of Expenditures of Federal Awards Et State and Local Financial Assistance .................................................................................... 166 Schedule of Labor Relations Consultants ........................................................................ 167 STATISTICAL SECTION Statistical Information Table 1 Net Assets by Component ............................................................................. 169 Table 2 Changes in Net Assets ................................................................................... 170 Table 3 Fund Balances, Governmental Funds ......................................................... 172 Table 4 Changes in Fund Balances, Governmental Funds ........................................ 173 Table 5 Assessed and Actual Value of Taxable Property ......................................... 174 Table 6 Direct and Overlapping Property Tax Rates ............................................... 176 Table 7 Top 20 Principal Sales Tax Payers ................................................................. 178 Table 8 Top 10 Industries that Generate Sales Tax ...................................................... 179 Table 9 Property Tax Levies and Collections .................................................................. 180 Table 10 Ratios of Outstanding Debt by Type ................................................................. 182 Table 11 Ratio of General Bonded Debt Outstanding ..................................................... 183 Table 12 Computation of Legal Debt Margin .................................................................... 184 Table 13 Pledged Revenue Coverage ....................................................................... 185 Table 14 Special Assessments Collections ....................................................................... 186 Table 15 Demographic Statistics ..................................................................................... 187 Table 16 New Construction, Bank Deposits and Property Value ................................ 188 ii September 11, 2008 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, 2007. 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. 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. 1 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 2007 Tri-Cities Metropolitan Area population was approximately 230,300 and Pasco's estimated population was 50,510. This represents a 57.52% 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 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 2 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 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. 3 In 1995, the $9.5 million Trade Recreation Agriculture Center (TRAC) was built through a joint venture between the City of Pasco and Franklin 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 one of the fastest growing areas in Washington State. In 2007, Pasco continued its positive growth though the trend has shown signs of slowing, allowing City resources and planning to catch up with the growth. 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. Residential home construction has also been renewed in the area along A Street and Highway 12. In 2007, the City completed construction on a $1.3 million shade structure to provide shaded seating behind third base at the newly renamed GESA Baseball Stadium. The Tri-City Dust Devils and the City recently announced that 600 new box seats will also be installed in the upper seating section of the stadium in time for the 2008 season opener. With the addition of the shade structure 4 and additional box seating options, it is anticipated that attendance will increase. Bybee Fresh Foods relocated and expanded its Yakima Valley operations to a new processing facility in Pasco in 2006, adding $10 million to the tax base. 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. In 2007, Pasco School District broke ground on the 341,000 square foot building, grounds and practice field that will be named Chiawana High School. The total contract amount is $72 million with completion estimated to be in time for the fall of 2009. Renovations and improvements are also being performed at the Edgar Brown Stadium to accommodate two high schools. These new projects and businesses will provide additional jobs to the Pasco job market. In 2007, the City issued a total of 1,886 Building Permits representing over $187 million in construction costs. Of the total permits, 518 were for new single- family residences and equates to $100 million in assessed valuation. The average value of a new home in Pasco was $194,475 in 2007. 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 2008/2009 objectives are outlined in the following fourteen goals: • Work with the Port of Pasco, TRIDEC and other entities to foster more industrial development, particularly at Heritage Industrial Center on East A Street, in the Foster Wells area east of Highway 395 and along Highway 12 corridor between Highway 395 and the Snake River Bridge. • Complete a plan to upgrade police and fire emergency communications system, hampered by 30 years of aging equipment, constrained VHF radio frequencies and geographic expansion of the city. • Design a police and courts public safety building to be built on the city hall campus and approve a funding plan to start construction by 2011. • Develop a long-range plan to relieve the growing congestion along the Road 68 corridor north of Interstate 182. 5 • Complete preliminary design of a Lewis Street overpass above railroad tracks east of downtown and pursue federal and state dollars to build it. • Work to reach an agreement with Franklin County for the county to apply Pasco development standards within portions of the city's urban growth boundary outside the city limits. • Adopt and implement an action plan for aquatic facilities in the city. • Adopt updated water and sewer system plans to reflect the anticipated growth patterns of the northwest. • Continue to work collaboratively with Kennewick and Richland to plan for development of regional centers such as convention centers, stadiums, and performing arts centers through existing public facilities districts and other mechanisms. • Complete a plan for regional-scale development of the Broadmoor Boulevard and Interstate 192 interchange areas and its surrounding urban lands. • Work with Pasco's older neighborhoods to define needed improvements, foster code compliance and upgrade deteriorating infrastructure such as substandard streets and gaps in the sidewalks while minimizing impact on low-income households. • Adopt a definitive plan for city involvement in revitalizing downtown Pasco and improving the downtown business area. • Approve an updated plan for enhancing older corridors and gateway entrances to the city, including the possibility of replacing overhead utilities with underground hardware, and begin implementing the plan. • Foster more use of the city's Columbia River shoreline. 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 Benefits Management, Inc., a third party administrator. The City reimburses the State of Washington Department of Employment Security for unemployment claims paid. The City is one of 79 cities participating in the Association of Washington Cities (AWC) Workers' Compensation Retrospective Rating Program which provides cities and towns with expertise and services to lower their Labor 8t Industries (L>tl) claims experience resulting in potential refund of a portion of their L&I premiums. 6 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. 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. Resp +c u ll mi tte ru cR ietd, Stanley R rebel, Directo CRY Manag r Administrative and Community Services 7 DIRECTORY OF CITY OFFICIALS As of December 31 , 2007 LENGTH OF TERM ELECTED OFFICIALS SERVICE EXPIRES MAYOR Joyce Olson 2 12/31 /09 COUNCILMEMBERS Rebecca M. Franci k 11 12/31 /11 Michael Garrison 20 12/31 /09 Robert Hoffman 3 12/31 /09 AlYenney 1 12/31 /11 Tom Larsen 7 12/31 /09 Matt Watkins, Mayor Pro-Tem 4 12/31 /11 LENGTH IN YEARS OF ADMINISTRATIVE OFFICIALS POSITION SERVICE CITY MANAGER Gary D. Crutchfield 23 29 PUBLIC WORKS DIRECTOR Robert J. Alberts 13 13 ADMISTRATIVE E. COMMUNITY SERVICES DIRECTOR Stanley R. Strebel 9 9 COMMUNITY DEVELOPMENT DIRECTOR Rick White >1 >1 FIRE CHIEF Gregory L. Garcia 13 13 POLICE CHIEF Denis W. Austin 12 12 MUNICIPAL COURT JUDGE Mary B. Ramirez 21 21 8 MANAGEMENT TEAM As of December 31 , 2007 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 Rick White, 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, City Engineer Reuel Klempel, Plant Division Manager Jesse U. Greenough, Field Division Manager Paul Rhoads, Assistant Field Division Manager 9 CITY OF PASCO 2007 ORGANIZATION CHART PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COMMUNITY COURT & ECONOMIC JUDGE DEVELOPMENT A DIRCTOR POLICE FIRE CHIEF CHIEF PUBLIC ADMINISTRATIVE WORKS/ & COMMUNITY ENGINEERING SERVICES DIRECTOR DIRECTOR I ATER/WW ppw- 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 10 i i Federal Summary City of Pasco Franklin County January 1, 2007 through December 31, 2007 The results of our audit of the City of Pasco are summarized below in accordance with U.S'. Office of Management and Budget Circular A-133. FINANCIAL STATEMENTS An unqualified opinion,was issued on the financial statements of the governmental activities, the business-type activities,each major fund,and the aggregate remaining fund information. Internal Control Over Financial Reporting: • Significant Deficiencies: We identified deficiencies in the design or operation of internal control over financial reporting that we consider to be significant deficiencies. • Material Weaknesses: We identified no significant deficiencies that we consider to be material weaknesses. We noted no instances of noncompliance that were material to the financial statements of the City. FEDERAL AWARDS Internal Control Over Major Programs: • Significant Deficiencies: We reported no deficiencies in the design or operation of internal. control over major federal programs that we consider to be significant deficiencies. • Material Weaknesses: We identified no significant deficiencies that we consider to be material weaknesses. We issued an unqualified opinion.on the City's compliance with requirements applicable to its major federal program. We reported no findings that are required to be disclosed under OMB Circular A-133.. Identification of Major Programs: The following was a major program during the period under audit: CFDA No. Program Title 14.218 Community Development Block Grants/Entitlement Grants The dollar threshold used to distinguish between Type A and Type B programs, as prescribed by OMB Circular A-133,was$300,000. The City qualified as a low-risk auditee under OMB Circular A-1 33. Washington State Auditor's Office 1 11 Schedule of Audit Findings and Responses City of Pasco Franklin County January 1, 2007 through December 31, 2007 1. The City's internal controls over financial statement preparation and journal entries were not sufficient to detect significant errors. Background City management,the state Legislature,state and federal agencies and bondholders rely on the information included in financial statements and reports to make decisions. It is the responsibility of City management to design and follow internal controls that provide reasonable assurance regarding the reliability of financial reporting. Our audit identified deficiencies in internal controls over financial reporting that adversely affect the City's ability to produce reliable financial statements. Government Auditing Standards, prescribed by the Comptroller General of the United States, require the auditor to communicate a significant deficiency as a finding, as defined below in the Applicable Laws and Regulations section. Description of Condition Our review of the internal controls over financial reporting and journal entries found the following deficiencies which,in aggregate,are considered to be a significant deficiency: • The City has knowledgeable and experienced staff responsible for preparing and reviewing the financial statements; however, in expediting the financial statements they. did not ensure debt proceeds were properly reported in accordance with accounting principles. • Personnel responsible for preparing and approving journal entries did not review the supporting documentation and accounting records in sufficient detail to ensure transactions were properly recorded and amounts were accurate. Transfers were recorded as expenditures and incorrect amounts were drawn from the supporting documentation. Cause of Condition The City's internal controls were not working as designed and did not detect errors or ensure financial statements and journal entries were properly prepared. Effect of Condition During the audit of the City's financial statements,the following material errors were found in the original financial statements received for audit: • The City incorrectly reported $835,650 of proceeds from long-term debt on the government-wide statement of activities and the Water/Sewer Fund statement of revenues, expenditures, and changes in fund balances. These statements use the i I Washington State Auditor's Office 2 I 12 I economic resources measurement focus, which does not record the proceeds of long- term debt sales. . • $1,257,937 in baseball stadium expenditures were recorded in two funds, thus overstating expenditures by the same amount. The journal entry should have been recorded as a transfer. Infrastructure assets reported in governmental activities on the government-wide statement of net assets were overstated by$6,494,276. Amounts were incorrectly drawn. from the City's supporting documentation when staff recorded prior period infrastructure asset additions (e.g., storm drains and curbs and gutters). Accumulated depreciation amounts were used for each asset category instead of original asset cost amounts for the original value of the assets. The first error was not corrected by the City,but the rest were subsequently corrected by the City. Recommendation We recommend the City ensure internal controls, such as monitoring and review of the journal entries and financial statement preparation process are working effectively to ensure identified errors are detected and corrected in a timely manner. City's Response The City's internal controls over financial statement preparation and journal entries were not sufficient to detect material errors. Proceeds of Long Term Debt City staff recognizes that reporting the proceeds of Long Term Debt (Bond Proceeds) on the Statement of Revenues and Expenditures and on the Statement of Activities for Business Type Activities(Proprietary Funds) should not be included on those statements. The total amounts of increases in debt should merely be, and were, shown in the Liability section of the Statement of Net Assets. New debt proceeds will be shown correctly in the future. Overstatement of Capital Expenditures The original statements prepared and given to the auditors reported expenditures for improvements at the Baseball Stadium in the Stadium/Convention Center Fund and also in the General Capital Projects Construction Fund. The journal entry that was made to transfer the money to the General Capital Projects Construction Fund should have been coded as a transfer type account and not as an expenditure type account in the Stadium/Convention Center Fund. This change was made and the financial statements corrected. In the future,these types of journal entries will be more closely reviewed and scrutinized to make sure of proper account number coding. Retroactive infrastructure Addition Reporting An error was found on the computer spreadsheet that resulted in an overstatement of retroactive infrastructure additions. This error also resulted in an error in calculating and reporting the depreciation of those assets. Washington State Auditor's Office 3 13 i These changes were made and the financial statements corrected. Auditor's Remarks We appreciate the cooperation and steps the City is taking to resolve this issue. We will review the condition during our next audit. Applicable Laws and Regulations RCW 43.09.200 states: The state auditor shall formulate, prescribe, and install a system of accounting and reporting for all local governments, which shall be uniform for every public institution,and every public office,and every public account of the same class. The system shall exhibit true accounts and detailed statements of funds collected, received, and expended for account of the public for any purpose whatever,and by all public officers,employees,or other persons. The accounts shall show the receipt, use, and disposition of all public property, and the income,if any, derived there from;all sources of public income,and the amounts due and received from each source; all receipts, vouchers, and other documents kept, or required to be kept, necessary to isolate and prove the validity of every transaction; all statements and reports made or required to be made, for the internal administration of the office to which they pertain; and all reports published or required to be published, for the information of the people regarding any and all details of the financial administration of public affairs. Budget Accounting and Reporting System (BARS) Manual, Part 3, Accounting, Chapter 1, Accounting Principles and General Procedures,Section B, Internal Control,states in part: Internal control is a management process for keeping an entity on course in achieving its business objectives, as adopted by the governing body. This management control system should ensure that resources are guarded against waste, loss and misuse; that reliable data is obtained, maintained, and fairly disclosed in financial statement and other reports;and resource use is consistent with laws,regulations and policies. Each entity is responsible for establishing and maintaining an effective system of internal control throughout their government. Government Auditing Standards,January 2007 Revision,Section 5.11,states in part: For all financial audits,auditors should report the following deficiencies in internal control: a. Significant deficiency: a deficiency in internal control, or combination of deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is a more than remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected.. . b. Material weakness: 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. Washington State Auditor's Office 4 14 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, 2007 through December 31, 2007 Mayor and City Council City of Pasco Pasco,Washington We have audited the financial statements of the governmental activities,the business-type activities,each j 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, 2007, which collectively comprise the City's basic financial statements,and have issued our report thereon dated September 11,2008. The prior year partial comparative information has been derived from the City's 2006 basic financial statements that we issued our report thereon dated November 9,2007. 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. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies involving the internal control over financial reporting that we consider to be significant deficiencies. 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 over financial reporting. We consider the deficiencies described in the accompanying Schedule of Audit Findings and Responses to be a significant deficiency in internal control over financial reporting,and are reported as Finding 1. Washington State Auditor's Office 5 15 i 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 City's internal control. Our consideration of the 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 the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that none of the significant deficiencies described above to be material weaknesses. 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. The City's response to the finding identified in our audit is described in the accompanying Schedule of Audit Findings and Responses. We did not audit the City's response and, accordingly, we express no opinion on it, 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 September 11,2008 i Washington State Auditor's Office 6 16 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, 2007 through December 31, 2007 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 31,2007. 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 31,2007. INTERNAL CONTROL OVER COMPLIANCE I 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 Auditor's Office 7 i 17 i 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. BRIAN SONNTAG,CGFM STATE AUDITOR September 11,2008 Washington State Auditor's Office 8 18 Independent Auditor's Report on Financial Statements i City of Pasco Franklin County January 1, 2007 through December 31, 2007 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 31,2007, which collectively comprise the City's basic financial statements as listed on page 11. 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 2006 financial statements and, in our report dated November 9, 2007, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information. i 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, 2007, and the respective changes in financial position and, where applicable, cash flows thereof, and the budgetary comparison for the General Fund, for the year then ended in conformity with accounting principles generally accepted in the United States of America. The.financial statements include partial prior year comparative information. Such information does not include all of the information required for a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the City's financial statements for the year ended December 31, 2006, from which such partial information was derived. 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. Washington State Auditor's Office 9 19 The management's discussion and analysis on pages 12 through 23 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. 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. BRIAN SONNTAG,CGFM STATE AUDITOR September 11,2008 I i I i Washington State Auditor's Office 10 20 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, 2007. 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 fifth 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 (MDFtA) - 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 21 statements in conformity with generally accepted accounting principles. The 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 36 E. 37), fiscal year December 31, 2007 ended with an Unrestricted Net Asset Balance of $22,709,790 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 $12,610,713 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 38 Et 39), General Revenues, primarily from property, retail and other taxes were used to support the following major activities: 22 a. $8,899,366 for General Government purposes - Administration, Finance, City Council, and Facilities; b. $750,294 for Judicial services - Municipal Courts; c. $17,213,554 for Security of Persons and Property - Police, Fire, Probation Services, Violations, and Protective Inspections; d. $2,136,977 for Physical Environment - Engineering; e. $1,116,613 for Economic Environment - Community Development; f. $5,713,083 Cultural Et Recreation - Parks Et Recreation; g. $4,242,310 for Transportation - Streets Maintenance Et Improvements, Multi-Model Facility. h. $39,740 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. 23 The Statement of Net Assets and the Statement of Activities can be found on pages 36-39. 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 2007 has improved its position since 2006. This is shown by the total increased net assets of $29,348,068. Of this increase $19,977,752 was in governmental activities with $6,131,710 attributed to 2007 activity and $9,370,316 was in business-type activities. Due to an increasing tax base, the City was able to lower its property tax rate by .1988 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. 24 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 2007 were $211,797,246. The following table reflects the condensed Statement of Net Assets. Financial information from 2006 financial statements is also presented for comparison purposes. 25 Table 1 Net Assets (in Millions) 2007 Governmental Business-type Total Primary Activities Activities Government Current and other Assets $ 33.2 $ 15.5 $ 48.7 Capital Assets 852 132.6 217.8 Other Non-Current Assets 3.3 2.8 6.1 Total Assets $ 121.7 $ 150.9 $ 272.6 Long-term Debt $ 18.6 $ 37.3 $ 55.9 Other Liabilities 2.3 2.5 4.8 Total Liabilities $ 20.9 $ 39.8 $ 60.7 Net Assets: Invested in Capital, Net of Debt $ 74.0 $ 97.7 $ 171.7 Restricted 4.0 0.8 4.8 Unrestricted 22.7 12.6 35.3 Total Net Assets $ 100.7 $ 111.1 $ 211.8 2006 Governmental Business-type Total Primary Activities Activities Government Current and other Assets $ 28.7 $ 15.9 $ 44.6 Capital Assets 71.2 123.6 194.8 Other Non-Current Assets 3.1 3.3 6.4 Total Assets $ 103.0 $ 142.8 $ 245.8 Long-term Debt $ 19.8 $ 39.2 $ 59.0 Other Liabilities 2.5 1.9 4.4 Total Liabilities $ 22.3 $ 41.1 $ 63.4 Net Assets: Invested in Capital, Net of Debt $ 59.1 $ 93.6 $ 152.7 Restricted 5.7 1.8 7.5 Unrestricted 15.9 6.3 22.2 Total Net Assets $ 80.7 $ 101.7 $ 182.4 See the Statement of Net Assets on pages 36-37 for detailed information. 26 Statement of Activities The following condensed table of changes in net assets compares the revenues and expenses for the current year. Financial information from 2006 financial statements is also presented for comparison purposes. Table 2 Changes in Net Assets (in Mllicns) 2007 2006 Govemnental Business-type Total Primary Governmental Business-type Total Primary Adivities Activities Government Activities Activities Govemment Revenues Program Revenues: Charges for Services $ 12.6 $ 14.3 $ 26.9 $ 11.4 $ 14.2 $ 25.6 Operating Grants&Contributions 1.1 - 1.1 1.0 - 1.0 Capital Grants&Contributions 3.4 6.4 9.8 9.2 3.6 12.8 C*neral Revenues: Property Taxes 5.2 - 5.2 4.7 - 4.7 Property Taxes levied for Debt Service 0.6 0.6 0.6 - 0.6 Sales&Use Taxes 8.6 8.6 8.2 - 8.2 Oocupabonal Lblity Taxes 7.8 7.8 7.6 - 7.6 Other Taxes 3.7 - 3.7 3.3 - 3.3 Investment Earrings 1.1 0.6 1.7 0.8 0.6 1.4 Msoellaleous Revenues 1.8 2.7 4.5 1.5 3.1 4.6 Total Revenues $ 45.9 $ 24.0 $ 69.9 $ 48.3 $ 21.5 $ 69.8 Program expenses includings irdrect expenses: General Government $ 8.9 $ - $ 8.9 $ 8.2 $ - $ 8.2 Judicial 0.8 0.8 0.7 - 0.7 Public Safety 17.2 17.2 16.6 - 16.6 Physical Erwonrr>errt 2.1 2.1 2.3 - 2.3 Transportation 4.3 4.3 1.3 - 1.3 Health and Human Services - - - - - Ecmxric Eniironment 1.1 1.1 1.6 - 1.6 O.dture and Recreation 5.7 5.7 4.9 - 4.9 Interest an Lang Term Debt 0.6 - 0.6 0.7 - 0.7 Water - 5.2 5.2 - 5.0 5.0 sew 6.3 6.3 - 5.7 5.7 Water Prooess Reuse 1.5 1.5 - 1.6 1.6 Storm Water 0.6 0.6 - 0.5 0.5 Irrigation - 0.9 0.9 - 0.7 0.7 Total Expenses $ 40.7 $ 14.5 $ 55.2 $ 36.3 $ 13.5 $ 49.8 Changes in Net Assets $ 5.3 $ 9.5 $ 14.7 $ 12.0 $ 8.0 $ 20.0 Proceeds from Issuanoe of L-T Debt $ - $ 0.8 $ 0.8 $ - $ - $ - Transfers 0.8 (0.8) - 0.1 (0.2) (0.1) Total Changes in Net Assets 6.1 9.5 15.5 12.1 7.8 19.9 See the Statement of Activities on pages 38-39 for detailed information. 27 Sources of Revenues 2007 Miscellaneous Revenues Transfers 6% 0% Investment Earnings 2% Charges for ® Services 39% Non-Property Taxes 29% Operating &Grants Contributions 2% Property Capital Grants Taxes — & 8% Contributions 14% Sources of Revenues 2006 Miscellaneous Revenues _Transfers 7% 0% Investment Earnings r 2% Charges for Services 37% Non-Property Taxes — 27% Operating &Grants Contributions 1% Property — Capital Grants Taxes 8% & Contributions 18% 28 Functional Expenses for 2007 .Culture&Rec Int.on L-T Debt .Eton.Environ 9.83 1.09% 1.99% Business-type Activities �s,\ 26.27% Transportation \ ., 7.79% Physical .Environ 3.80% General Government 16.12% Public Safety Judicial 31.16% 1.45% Functional Expenses for 2006 .Culture&Rec Int.on L-T Debt .Eton.Environ 9.83 1.41% 3.21% % Business-type yid Activities Transportation E, � lr� � 27.11% 2.61% `�� ,., Physical .Environ 4.62% General Government 16.47% Public Safety 33.33% Judicial 1.41% 29 Comments on Pasco's economic growth are contained in the Transmittal Letter. The City's assessed value grew 7.32% for fiscal year 2007. This was driven by the $187 million in new construction values added during 2007. The City's levy rate per $1,000 of assessed value was reduced by 7.25% in 2007. The City Funds Governmental Funds The governmental funds, as presented on the Governmental Funds Balance Sheet, reported a combined fund balance of $23,324,595 which is a 16.00% increase from the beginning of the year. Major Funds The General Fund a. Total assets increased by $2,287,387. This increase is due to repayment of interfund loans from non-major funds to cover negative cash balances and receipt of state grant monies. b. Total liabilities increased by $434,453. This increase is due mainly to increases in accounts payable and deposits payable balances. c. Fund Balance increased by $1,852,934. This increase is due to repayment of interfund loans from non-major funds to cover negative cash balances and receipt of state grant monies. General Fund basic financial statements can be found on pages 40-48. The Arterial Street Fund was previously classified as a major fund in fiscal year 2005 and 2006 due to large multi-year construction projects; however it did not meet the measurement criteria for a major fund in fiscal year 2007. Prior year financial statements will show the Arterial Street Fund as a major fund but it is classified as a non-major fund in 2007, therefore comparative financial data will not be presented on the Governmental Funds Balance Sheet but is available in the Combining Balance Sheets for Non-Major Governmental Funds. 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 15,458 30 customers, 14,563 of which reside within City limits and approximately 91% of those are single-family residential customers. The latest water rate increase became effective on January 1, 2004. The sewer system currently serves approximately 13,255 customers, 97% of which are single-family residential customers. Sewer rates were decreased by 10% effective on January 1, 2007. a. Total assets increased by $8,247,769. This was mainly due to the addition of $6,754,934 in donated infrastructure. b. Total liabilities decreased by $1,201,907 due to payments made on outstanding Long-term debt. c. Net assets increased by $9,449,676. Proprietary Fund basic financial statements can be found on pages 50-55. 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 $1,500,000 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, Plan Check Fees and Occupational Utility Taxes. • $3,079,500 in expense increases were added to the General Fund to cover: increases in overtime costs for police Ft fire, outsourced inspection services for building department; the addition of a Communications division, legal services, interfund loans to funds that have a negative fund balance and to allow spending of unanticipated revenue streams and their corresponding expenses. • $1,579,500 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 $1,485,000 in interfund loans and $349,500 in interfund transfers to other funds. 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 31 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 $42,797,072. (See Schedule 13) Capital Assets and Debt Administration Capital Assets The City of Pasco implemented the major model portions of GASB Statement #34 for infrastructure beginning in 2003. This is the first year that the City financial statements will reflect the infrastructure portion prior to 2003. As of year end 2007, the City had $223,836,872 invested in a variety of capital assets as illustrated in the following table. Capital assets net of depreciation increased by approx. $22.9 million in 2007. Of this amount $14.4 million was for governmental activity capital asset expenditures and infrastructure donations and $8.5 million was for business-type activity capital expenditures and infrastructure donations. 32 Table 3 Capital Assets at Year-End (Net of Depreciation) 2007 Governmental Business-type Activities Activities Total Land $ 5,710,447 $ 317,786 $ 6,028,233 Buildings&Structures 24,082,313 - 24,082,313 Improvements 6,417,406 - 6,417,406 Machinery&Equipment 1,825,746 - 1,825,746 Work-in-Progress 3,347,635 2,754,080 6,101,715 Infrastructure 44,863,823 - 44,863,823 Equipment Rental 2,201,345 987,092 3,188,437 Equipment Animal Control 45,331 45,331 Source of Supply - 97,177 97,177 Pumping Plants - 5,132,386 5,132,386 Treatment Plants - 23,035,756 23,035,756 Transmission, Distribution &Collection Lines - 68,091,157 68,091,157 General Plant Assets - 1,821,746 1,821,746 West Pasco Water System - 361,726 361,726 Plant Acquisition - 327,116 327,116 Industrial Waste Water Plant - 12,209,158 12,209,158 Irrigation - 17,198,199 17,198,199 Storm Water Assets - 3,009,447 3,009,447 $ 88,494,046 $ 135,342,826 $ 223,836,872 Table 4 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 See Note 6, pages 72-75 for additional information on capital assets. 33 Debt Administration At December 31, 2007, the City had a number of debt issues outstanding. These issues include $11,850,000 of general obligation bonds, both voted and non-voted, $17,620,000 of revenue and revenue refunding bonds, and $120,000 of special assessment bonds. The City's general obligation bonds have maintained an Aaa rating from Moody's Investor Service. Moody's rated the City's most recent water and sewer revenue bonds A3. The City's bonds are backed with municipal bond insurance policies as follows: 1998 Water/Sewer Bonds, 2001 LTGO Bonds, and 2002 Water/Sewer Bonds are backed by AMBAC Indemnity Corporation; the 2002 UTGO Bonds are backed by FGIC; and the 1999 UTGO Bonds, 2001 Water/Sewer Bonds and 2002 LTGO Bonds are backed by MBIA. 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 $2,771,040 at December 31, 2007. 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, 2007. The outstanding balance of this loan is $16,751,468. 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, 2007 is $1,001,552. The City does not have any restrictions, commitments or other limitations that would significantly affect availability of fund resources. See Financial Note 10, pages 87-90 and Schedules 9, pages 156-159 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. 34 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. 35 City of Pasco Statement of Net Assets December 31,2007 Governmental Business-Type Activities Activities Total ASSETS Current Cash&Cash Equivalents $ 10,739,508 $ 6,602,828 $ 17,342,336 Investments 13,126,066 7,182,349 20,308,415 Receivables(net of allowances) Taxes 2,719,114 - 2,719,114 Customer Accounts 5,161,509 911,823 6,073,332 Due from Other Funds 20,000 28,100 48,100 Notes Receivable - - - Interest Receivable 132,164 71,833 203,997 Other Receivables 957,646 253,271 1,210,917 Inventories 9,355 303,026 312,381 Prepaid Insurance - 19,226 19,226 Joint Ventures 299,984 - 299,984 Land 5,710,447 317,786 6,028,233 Capital Assets, Net of Depreciation 34,572,140 46,981,601 81,553,741 Construction Work In Progress 3,347,635 2,754,080 6,101,715 Infrastructure, Net of Depreciation 44,863,823 85,289,359 130,153,182 Deferred Charges - 175,353 175,353 TOTAL ASSETS 121,659,391 150,890,635 272,550,026 LIABILITIES Liabilities Accounts Payable 1,665,054 633,790 2,298,844 Matured GO Bonds - - - Interfund Loans Payable 28,100 - 28,100 Due to Other Governmental Units 76,320 71,025 147,345 Retainage Payable - 180,777 180,777 Deposits Payable 383,822 87,233 471,055 Interest Payable - 392,113 392,113 Other 115,145 - 115,145 Deferred Revenue - 1,114,327 1,114,327 Non-Current Liabilities Deferred Revenue 4,100,410 - 4,100,410 Unclaimed Property 3,422 20,988 24,410 Unamortized Discount on Refunding Debt - (7,937) (7,937) Claims Incurred Not Reported 125,000 - 125,000 Due within One Year 2,540,015 3,009,702 5,549,717 Due in More than One Year 11,912,628 34,300,846 46,213,474 Total Liabilities 20,949,916 39,802,864 60,752,780 NET ASSETS Invested in Capital Assets, Net of Related Debt 74,058,193 97,635,365 171,693,558 Restricted for: Advances to Other Funds 20,000 28,100 48,100 Debt Service 2,257,622 813,593 3,071,215 Capital Improvements 15,165 - 15,165 Other Restricted 1,648,705 - 1,648,705 Unrestricted(deficit) 22,709,790 12,610,713 35,320,504 Total Net Assets $ 100,709,475 $ 111,087,771 $ 211,797,246 See accompanying notes to the basic financial statements. 36 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. 37 Cltycf Pasco Staten rt of Activities Llsoertber 31,2707 Nat(Epelses)FYI and Rngran Fames Chaxles in Nat Assets Cpaeiting RirrayC33emet Charges for Go-tsaxi Coital Oats Goenmatal Rsiness-Type Rrdord Rngars Bpenses Sevices Cletribrtions &CbIn utiors Adivities Activities Total Rin yGmeTi art: c-a�Activities: G-erveral Cjemat $ 8,899,366 $ 5,975817 $ 177,472 $ $ (2746,077) $ - $ (2,746,077) Judicial 750,294 1,122,310 - - 372,016 372,016 RhicSaFety 17,213,554 2, 2846 22,107 (14,730,601) (14,73,601) R)dcal ErrirrnTat 2136,977 743,705 (1,393272) (1,39aM) Trarspataticn 4,242,310 490,873 - 2,178,870 (1,572,567) (1,572,567) F-t3ElihendFirrenSermoes 39,740 - 19,508 - (20,231) (4231) Ebcncmc5-irorrrert 1,116,613 1,579,411 610,284 1,25,387 2,332,469 2,332,469 aitmarxiPeo-eetion 5713,083 466,347 46,271 (-5201,4 (5,201,465) Interest on Long Term D3U 639,570 - - (63,570) (63,570) Total G errrertal Activities 40,751,507 12,640,309 1,073,643 3,43$267 (23,583,298) - (23,599,29B) B.siress-type Activities Water 5179,548 5,763,475 - 1,347,403 1,931,330 1,931,330 Saner 6,274,624 5,914,141 3,985613 3,625,130 3,625130 Water Rnoess FbLse 1,508,346 1,657,011 - 153,655 153,666 3amWete- 5%276 421,040 31,5390 171,154 171,154 Irrigation 936,053 551,078 698,945 313,970 313,970 Total aj§nes--WActivities 14,48$847 14,306,745 6,377,351 - 6,195,249 6,195249 Total RirrsryCboenmet $ 5r�24O,354 $ 4947,054 $ 1,073,643 $ 9,815,608 (23,568,298) 6,195249 (17,404,049) Ga ed FbA n A--. Taxes RrpetyTaes 5,21,5110 - 5,215,110 Rrp*Tam Ie,iedfcr D&Safiee 559,304 - 559,304 Sales&LbeTa(es 8,645,989 - 8,645,939 Om4)tiart Lblk(Taxes 7,842,446 - 7,842,446 CtherTaes 3,729,218 - 3,729,218 InvestrretEarirgss 1,070,349 639,123 1,709,469 Ms ellaneas Peeies 1,871,224 2,708,796 4,531,020 Total Ge Ed Pemi Es 4884,590 3,347,916 32,232,506 Roceeds from lssLumof Long-Term Dau - 835650 835,650 Trareters 846,418 (865914) (19,526) Total Flues 29,731,008 3,317,671 33,04$630 Change in Nat Assets 6,131,710 9,512,871 15,644,581 RicrYeerA4uIrrff& 13,463,044 (151,101) 13,311,943 Assets Rxd-esed in Char Furl; 382,998 8,546 391,544 Nat Assets Beginning 80,731,723 101,717,455 182,449,178 NA Assets Erring $ 100,709,475 $111,067,771 $ 211,797,246 * irrdudes a4ustrret for GkI:B 34 retroactive irf a t uct re assets net of depaciaticn Seewarp yingnatestothebescfirendalstatw ts. 38 City d Pasco Statement of Adivities Decernber 31,2006 Net(Expenses)Revenues and Program Revenues Changes in Net Assets Operating PnmaryGovernment Charges for Grants and Capital G-a is Goverrrnaital Business-Type Functional Programs Expenses Services Contributions &Contributions Activities Activities Total Primary Garemmerrt: Governmental Adivities: General Gwemrrerrt $ 8,146,549 $ 4,679,106 $ 181,902 $ $ (3,285,541) $ $ (3,285,541) Judicial 741,933 850,761 - 108,828 108,828 Public Safety 16,592,068 1,862,297 194,195 (14,535,576) (14,535,576) Physical Environment 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 Health and Hunan Services 44,242 - 23,407 - (20,835) (20,835) Eooncmic Environment 1,647,209 1,780,393 645,114 83,000 861,298 861,298 Culture and Recreation 4,872,473 582,703 - - (4,289,770) (4,289,770) Interest on Long Term Debt 681,825 - - (681,825) (681,825) Total Governmental Activities 36,344,908 11,362,442 1,044,618 9,244,394 (14,693,454) (14,693,454) Business-type Activities: Water 5,050,598 5,639,373 - 1,748,019 2,336,794 2,336,794 Seiner 5,724,267 6,132,616 930,354 1,338,703 1,338,703 Water Process Reuse 1,558,076 1,444,200 - (113,876) (113,876) Stain Water 518,408 408,027 310,062 199,681 199,681 Irrigation 748,126 561,477 636,897 450,248 450,248 Total Business-type Activities 13,599,475 14,185,692 - 3,625,332 4,211,549 4,211,549 Total Primary Government $49,944,383 $25,548,134 $ 1,044,618 $12,869,726 (14,693,454) 4,211,549 (10,481,905) General Revenues: Taxes: PropertyTaxes 4,748,822 - 4,748,822 Property Taxes levied for Debt Service 554,260 554,260 Sales&Use Taxes 8,225,795 8,225,795 Oocupational Utility Taxes 7,560,655 7,560,655 Other Taxes 3,305,358 3,305,358 Investment Earnings 849,559 622,290 1,471,849 Nisodlaneous Revenues 1,562,070 3,136,171 4,698,241 Total General Revenues 26,806,519 3,758,461 30,564,980 Transfers 113,478 (183,227) (69,749) Total Revenues 26,919,997 3,575,234 30,495,231 Change in Net Assets 12,226,543 7,786,783 20,013,326 Prior Year Adjustments (398,353) (106,358) (504,711) Assets Purchased in Other-Funds - 28,919 28,919 Net Assets Beginning 68,903,533 94,008,111 162,911,644 Net Assets Ending $80,731,723 $101,717,455 $ 182,449,178 See accompanying notes to the basic financial statements. 39 City of Pasco Balance Sheet Governmental Funds December 31,2007 2007 2007 2007 Other Total General Governmental Governmental Fund Funds Funds ASSETS Current Cash&Cash Equivalents $ 3,272,498 $ 6,170,311 $ 9,442,809 Investments 3,999,720 7,541,491 11,541,211 Receivables (net of allowances) Taxes 2,603,461 115,653 2,719,114 Customer Accounts 1,104,983 4,024,459 5,129,442 Interfund Loans Receivable 1,501,800 4,100 1,505,900 Interest Receivable 43,302 74,430 117,732 Other Receivables 311,340 646,306 957,646 TOTAL ASSETS $ 12,837,104 $ 18,576,750 $ 31,413,854 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 744,020 $ 842,120 $ 1,586,140 Matured GO Bonds - - - Interfund Loans Payable - 1,704,000 1,704,000 Due to Other Governmental Units 72,620 3,700 76,320 Bonds, Notes, Loans Payable - 120,000 120,000 Deposits Payable 383,822 - 383,822 Interest Payable - - - Other 2,175 112,970 115,145 Deferred Revenue 1,026,342 3,074,068 4,100,410 Unclaimed Property 3,422 3,422 Total Liabilities 2,232,401 5,856,858 8,089,259 Fund Balances Reserved for: Advances to Other Funds $ 1,501,800 $ 4,100 $ 1,505,900 Debt Service - 2,257,622 2,257,622 Capital Improvements 15,165 - 15,165 Other Reserves - 1,648,705 1,648,705 Unreserved, Reported in: General Fund 9,087,738 - 9,087,738 Special Revenue Funds - 8,259,914 8,259,914 Debt Service Funds 773,275 773,275 Capital Project Funds - (223,724) (223,724) Total Fund Balances 10,604,703 12,719,892 23,324,595 TOTAL LIABILITIES AND FUND BALANCES $ 12,837,104 $ 18,576,750 Amounts reported for governmental activities in the statements of net assets are different because: balance in government funds 23,324,595 Capital Assets used in governmental activities are not financial resources and therefore are not reported in the government funds. 86,547,353 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. 4,963,379 Interfund loans between governmental funds were netted against each other to eliminate duplication of amounts. 190,000 Some liabilities, including bonds payable,are not due and payable in the current period and therefore are not reported in the funds. (14,315,852) Net assets of governmental activities $100,709,475 See accompanying notes to the basic financial statements. 40 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. 41 City of Pasco Statement of Revenues, Expenditures,and Changes in Fund Balances Governmental Funds For the Year Ended December 31,2007 Other Total General Governmental Governmental REVENUES Fund Funds Funds Taxes 21,722,420 $ 2,794,013 $ 24,516,433 Licenses&Permits 1,708,999 214,554 1,923,553 Intergovernmental Revenue 1,551,757 3,167,495 4,719,252 Charges for Services 2,911,444 1,826,540 4,737,984 Fines&Forfeitures 1,016,139 38,195 1,054,334 Investment Income 351,086 609,747 960,833 Miscellaneous Revenue 705,577 1,067,394 1,772,971 Total Revenues 29,967,422 9,717,938 39,685,360 EXPENDITURES Current: General Government 4,251,117 - 4,251,117 Judicial 750,294 - 750,294 Public Safety 14,954,570 1,865,106 16,819,676 Physical Environment 1,574,134 251,003 1,825,137 Transportation - 1,537,483 1,537,483 Health and Human Services 8,653 31,087 39,740 Economic Environment 382,863 362,525 745,388 Culture and Recreation 3,289,504 827,675 4,117,179 Capital Outlay 813,095 4,924,244 5,737,339 Debt Service Principal 517,079 645,095 1,162,174 Interest 395,225 244,345 639,570 Total Expenditures 26,936,534 10,688,563 37,625,097 Excess of Revenues Over(Under)Expenditures 3,030,888 (970,625) 2,060,263 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets 157,018 - 157,018 Proceeds of General L-T Debt - - - Insurance Recoveries (2,813) 2,710 (103) Operating Transfers-(In) 91,125 4,893,176 4,984,301 Operating Transfers-(Out) (1,377,078) (2,869,674) (4,246,752) Total Other Financing Sources(Uses) (1,131,748) 2,026,212 894,464 Net Change in Fund Balances 1,899,140 1,055,587 2,954,727 Prior Year Adjustments (46,206) 308,213 262,007 Fund Balance Beginning 8,751,769 11,356,092 20,107,861 Fund Balance,Ending $ 10,604,703 $ 12,719,892 $ 23,324,595 See accompanying notes to the basic financial statements. 42 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) - (2,136,114) (5,710,114) Total Other Financing Sources(Uses) (3,492,789) 1,491,807 2,155,936 154,954 Net Change in Fund Balances (554,446) 1,290,170 (182,727) 552,997 Prior Year Adjustments 138,595 (16,256) (216,881) (94,542) 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. 43 Qty 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 31,2007 Net change in fund balances-total govemn-a tal funds $ 2,954,727 Arnounts 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. 2,053,736 Governmental funds report capital outlays as expenditures. Ha,never,in the Statement of Net 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. (79,246) 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 canes from the Statement of Revenues, Expenditures, and Changes in Fund Balances for Govemment Funds. 1,162,174 Adjustment for interfund transfers recorded as expenditures in govememental funds but are reconciled in Statement of Activities. This amount comes from the Statement of Activities. (846,418) 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 2007. 4,200 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 an-curet comes from the Combining Statement of Revenues, Expenditures and Changes in Net Fund Assets for Internal Service Funds. 882,537 Change in net assets of governmental activities $ 6,131,710 See accompanying notes to the basic financial statements. 44 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. 198,478 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 $ 12,226,543 See accompanying notes to the basic financial statements. 45 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Origianal Budget Final Budget REVENUES Taxes $ 19,571,300 $ 20,471,300 $ 21,722,420 $ 2,151,120 $ 1,251,120 Licenses&Permits 957,100 1,457,100 1,708,999 751,899 251,899 Intergovernmental Revenue 1,544,500 1,544,500 1,551,757 7,257 7,257 Charges for Services 2,549,340 2,649,340 2,911,444 362,104 262,104 Fines&Forfeitures 721,000 721,000 1,016,139 295,139 295,139 Investment Income 240,000 240,000 351,086 111,086 111,086 Miscellaneous Revenue 488,000 488,000 705,577 217,577 217,577 Total Revenues 26,071,240 27,571,240 29,967,422 3,896,182 2,396,182 EXPENDITURES Current: General Government 4,592,475 4,214,175 4,251,117 341,358 (36,942) Judicial 718,065 718,065 750,294 (32,229) (32,229) Public Safety 13,331,268 14,966,068 14,954,570 (1,623,302) 11,498 Physical Environment 1,928,480 1,928,480 1,574,134 354,346 354,346 Transportation - - - - - Health and Human Services 7,000 7,000 8,653 (1,653) (1,653) Economic Environment 374,265 413,265 382,863 (8,598) 30,402 Culture and Recreation 3,300,435 3,377,435 3,289,504 10,931 87,931 Capital Outlay 882,700 882,700 813,095 69,605 69,605 Debt Service - - Principal 601,200 601,200 517,079 84,121 84,121 Interest 424,180 424,180 395,225 28,955 28,955 Total Expenditures 26,160,068 27,532,568 26,936,534 (776,466) 596,034 Excess of Revenues Over(Under)Expenditures (88,828) 38,672 3,030,888 3,119,716 2,992,216 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets 1,000 1,000 157,018 156,018 156,018 Proceeds of General L-T Debt - - - - - Insurance Recoveries 1,000 1,000 (2,813) (3,813) (3,813) Transfers-In 133,000 133,000 91,125 (41,875) (41,875) Transfers-(Out) (1,453,000) (1,675,000) (1,377,078) 75,922 297,922 Total Other Financing Sources(Uses) (1,318,000) (1,540,000) (1,131,748) 186,252 408,252 Net Change in Fund Balances (1,406,828) (1,501,328) 1,899,140 3,305,968 3,400,468 Prior Year Adjustments - - (46,206) (46,206) (46,206) Fund Balance Beginning 6,000,000 6,000,000 8,751,769 2,751,769 2,751,769 Fund Balance,Ending $ 4,593,172 $ 4,498,672 $ 10,604,703 $ 6,011,531 $ 6,106,031 See accompanying notes to the basic financial statements. 46 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 Capital 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. 47 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 Capital 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. 48 THIS PAGE LEFT BLANK INTENTIONALLY 49 atyof Nsm StataTEnt of tit Assets P((#Etay FuxIS FbrtheYbE 5xled DsmT per 31,2007 2007 2006 B-dnessType E3_bnessType Ptmbes C3mmn3'tal RsinessType Pd\ibes G3*nwe-d aj*EssType Erterpise Fuxis Activities Pc Mes Erte Anse Rrdss Activities Activities Vta-/Smff Intend-%moe IrtmA Service V\bter/Sena- IrterTid Sermoe IrtaTd Savioe Fuxl Finds Fuxin Rrd Reds Funk ors Offal Assets; anertash&CashEWvalats $ 5373,636 $ 1,296,699 $ 502,831 $ 5,042,266 $ 749,246 $ 697,858 Ftroavaldes(rd d ellonaves) L.tilityFboawbies 911,823 - - 7835410 - - Cther FbOavakles 253,271 - - 254,311 - - Nles Fboavatie - - - - - - InterVdLcensPoca de 4100 170,000 - 1,057,700 186000 41,158 Interest Fbodvsble 65,250 14,432 6,583 61,221 7,568 6,801 Die frcmG3OTrrEr-d l tits - 32,057 - - - - M3d,erdse Invertay 303,026 9,355 - 319924 7,706 - Rod Irsuaioe 19,228 - - 4598 - - Rd Offe t Assets $ 6,954,332 $ 1,522,553 $ 500,414 $ 7,545425 $ 944,520 $ 656,817 NM4arrertAssets: InvestraTts $ 6,567,778 $ 1,534,855 $ 614,572 $ 6,16,770 $ 915,745 $ 742,938 Fbsbided Assets Lit SmAoe Cash&C3shapole°ts 726,360 - - 644,177 - - Q pital,meets La-d 317,786 - - SV238 - - BjIdncjs hxe iInpD"rffts/ Eq.jM'E t&S, EnT 70,947967 4,856,150 1,866,638 69,194,342 4,506,096 1,659,288 Less Aoam.idedQspreda6cn (24,953,457) (2,612,474) (879,547) (22,4165301) (Z274,518) (796,601) Iriostrutle 101,775,946 - - 90,31$525 - - Less Aoa rdatedDBpmabcn (16486,53n - - (14,464,461) - - CcrEhdcnVVirk In Rogess 2,754,060 - - 3,289,894 - - C3tared C Nyges 175,353 - - 185180 - - Tatal NM4arrErtA69ds $ 141,825,228 $ 3,831,531 $ 1,601,663 $ 132988364 $ 3,147,328 $ 1,605,65 TOTA-A= $ 148,779,558 $ 5354,084 $ 2111,077 $ 140,531,789 $ 4,091,842 $ 2261,442 50 LIABILIMS Orrent liabilities Awaits Payable $ 631,385 $ 78,914 $ 2405 $ 449,011 $ 2Z851 $ 2,252 DuetoCtherGo,erm nts 71,025 - - 30,800 - - FatainagePayable 180,777 - - 463,839 - - M hied GO Baxls - - - - - - Curert F loton Boris Payable 1,375,000 - - 1,270,000 - - Orrert Fbrticn Loans Payable 1,466,661 - - 1,427,663 - - DqDosits 87,233 - - 55,429 - - Interest Payable 392,113 - - 87,683 - - DefensdQedits 1,114,327 - - 751,810 - - Total CuTert Liabilities $ 5,318,521 $ 78,914 $ 2,405 $ 4,536,235 $ 22,851 $ 2,252 N>rrQrrert Liabilities QxTpensatedAbsenoes $ 160,156 $ 16,791 $ 7,884 $ 151,990 $ 16,066 $ 7,884 Clams Inarred Not R ported - 125000 - - 125000 - t-daim3d Roperty 20,988 - - 17,573 - - Bonds Payable: 1998 Feve i e Bonds SaiesA 1,520,000 - - 1,615,000 - - 1998 Pekrxing Bands Series B 4,710,000 - - 5,270,000 - - 1998 Fb e"Bonds Series C 415,000 - - 515,000 - - 1999FbRnLeBonds 585,000 - - 635,000 - - 2001 Fb/emie Borts 675,000 - - 735,000 - - 2002 Fier e Bonds 4,810,000 - - 5,065000 - - 2005 FbA nE Bonds 4,060,000 - - 4,210,000 - - 2007 Fb„enae Bonds 845,000 - - - - - Less:O rertFbrdcn (1,375,000) - - (1,270,000) - - Lken-rrbzed Dsoaxt on Pdirdng Debt (7,937) - - (8,824) - - Lcers Payabe: PArrF Loans 2,771,040 - - 3,094,128 - - CW Loan 16,751,468 - - 17,856,043 - - Irterf"Lwns - - - - 85,010 71,158 Less:O.rrert F brbcn (1,466,661) - - (1,427,663) - - Total NmOffert Liabilities $ 34,474,054 $ 141,791 $ 7,884 $ 36,458,247 $ 226,086 $ 79,042 Total Liabilities $ 39,792,575 $ 220,705 $ 10,289 $ 40,994,482 $ 248,937 $ 81,294 NEf ASSETS Investment in Capita Assets: Net of Fbded Debt $ 96,648,274 $ 2246,676 $ 987,091 $ 92,804,318 $ 2238,284 $ 862,697 Pe&ded for Debt Service 841,603 170,000 - 1,757,306 180,000 41,158 Lhieshided 11,497,016 2716,703 1,113,697 4,975,683 1,423,621 1,276,303 Total Net Assets $ 108,986,983 $ 5133,379 $ 2100,788 $ 99,537,307 $ 3,842,905 $ 2,180,148 See accor Wy rig notes to the basicfinancia stetanxits. 51 Qty of Pasco Statement of Revenues,Expenses,and Changes in Fund Net Assets Proprietary Funds For the Year Ended December 31,2007 2007 2006 Governmental Business-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/Sever- Water/Seiner Fund Total Total Fund Total Total OPERATING REVENUES Charges for Services-Internal $ - $ 4,012,717 $ 474,960 $ - $ 3,149,252 $ 451,560 Charges for Services-Other 13,816,835 586,872 14,950 13,730,957 241,742 3,175 Nisoellaneous Revenue 1,952,100 2,486,668 Total Operating Revenues 15,768,935 4,599,589 489,910 16,217,625 3,390,994 454,735 OPERATING EXPENSES Personal Services 2,697,082 593,979 18,600 2,301,789 178,211 19,900 Supplies 385,282 - - 282,581 - - Other Services&Charges 3,247,786 3,140,209 Taxes 1,815,355 - - 1,905,927 - - K/bintenance Expenses - 639,582 159,803 - 595,600 161,942 Insurance Claims and Expenses - 2,486,648 - - 2,360,390 - Depredation 4,535,918 338,132 69,375 3,818,741 17,219 264,018 Capital Outlays - 230,243 79,431 - 183,123 165,537 Total Operating Expenses 12,681,423 4,288,584 327,209 11,449,247 3,334,543 611,397 OPERATING INCOME(LOSS) 3,087,512 311,005 162,701 4,768,378 56,451 (156,662) NON-OPERATING REVENUES(DCPENSES) Interest and Investment Revenue 579,419 109,516 59,701 571,321 68,153 50,969 Proceeds from Debt Issuance 835,650 - - - - - Famiand Rentals 686,140 626,292 - Interest Expense (1,436,785) (1,495,401) - Amotization Expense (43,430) (43,430) -!Miscellaneous Non-Operating Revenues 70,556 - - 23,211 - - Total Non-Operating Revenues(Expenses) 691,550 109,516 59,701 (318,007) 68,153 50,969 Incare(Lass)before Contributions and Transfers 3,779,062 420,521 222,402 4,450,371 124,604 (105,693) Capital Contributions 6,081,445 353,147 295,906 3,625,332 - Transfers Out (1,724,261) - (88,869) (430,000) (59,263) Transfers In 947,186 108,869 - 306,036 (40,837) - Changes in Net Assets 9,083,432 882,537 429,439 7,951,739 83,767 (164,956) Prior Year Adjustments 551,478 24,939 (702,579) (269,689) (303,811) 163,331 Assets Purchased in Other Funds - 382,998 193,780 181,569 28,919 Assets Purchased&Transferred to Eq Rental (185,234) - - - - - NETASSETS-BEGINNING 99,537,307 3,842,905 2,180,148 91,855,257 3,881,380 2,152,854 NETASSEfS-ENDING $ 108,986,983 $ 5,133,379 $ 2,100,788 $ 99,537,307 $ 3,842,905 $ 2,180,148 See acocrrpanying notes to the basic financial statements. 52 QtydR im ':UeYetdFbuaia,Bpa a-dQa-WsinRrdMA&D-Aal FcrftYeff5rbdDam�31,2W7 flara3sTABP&Aes Gm"-ata 4jneSS4� 6tepiseRrrls PdrAEs ACMES VAff Sans Rao s\A t SmTrAs Irdgbm Irterd&Nm Irterd Rio=. ems qjaAar, R3ee cm gigabcrs Tcta Rrit; Rrr3 CF8�4l1f�F�tJ� Qfa Sati+ae; Irterd $ - $ - $ - $ - $ - $ 4,012,717 $ 474,9 QagsfcrScNaes-C Iha 5,27,535 5914,141 1,657,011 421,040 551,078 1581&835 5EQ872 14,9D IVtsokerf spae a 83E 12 1,CMW4 - - 6&904 1,9E?V - - Tcta qjTArg Paoim Q111,727 &96$175 1,657,011 421,010 614,932 1575&935 4,57 RTI) 489910 CFEF;Aflf3D4ENM Fbwid Macs 942,431 1,119614 173 T9 199722 251,546 2697,0E2 59W9 1$6J0 S,Wics 198567 11QW1 31,238 1&2x3 37,273 385282 - - Co-ff%moe;&Qargas 1,18178 1,149637 461,619 222 185070 5247,786 - - TaEs 77$318 6DR119 247,742 43589 4&557 1,815355 - - Ibrteaa:E� - - - - - - 63R5a2 1-�Q833 Ir&raa;Qarrsal6geiees - - - - - - 2485648 - m 1,385644 Z3E ITB U,724 73 510 371,537 4,535918 3E&132 89375 Chita C)A-w - - 235243 79431 TctjgiaArgEparss 4,483;168 547$904 1,222002 59&276 949m 12631,423 4,28$521 327,29 CJ•13d4lII GIN33EXES) 1,631,EE9 1,485271 434,919 174 23b) (29QW1) 5087,512 311,005 1&771 Illt3FB1T5(EH,fM Irtff�a-dIrMEhlEtPaEle 239118 315530 2c5753 (12OEE)) 1QO73 579419 lM516 X711 F3 f;frcmL-TR#.tlssane - 835E ED - 81166 - - FarrtariFbtJs - 6EQ'WO - 685140 - - Irtee#Bpn3a (345963) (731,331) (27&451) - (31,07P (1,435785) - - P mtm im Epa3e (24238) (4,38 (1Q8f - (45430) - - MscdlamBNTK� ArgFaeues 51,072 19484 - - 7&556 - - Tcta rgibm-m(Fpar3es) 81,981 372944 435639 (12c6p 499 W1,aD 1CR516 X701 lame(I.. )blmOj nb-hc sa-dTraisfes 1,548578 1,855215 e5B (18,R) (31QP 5779062 QE21 222,402 C-lita oitlz6ou 1,051,497 5985613 345390 695915 QOB1,445 365147 295906 TrarfesO.t - (1,724,981) - - (1,724,0) - (858E9) TrarfesIn - 237,186 SOW 947,185 105863 - OaWinl AEets 2,0,O75 4,41&753 8t95Em 8$OD9 387,947 9081432 88Z537 429439 RiarYaErPqL&rats 551,478 21,971 M59) PmEt-.R.rctTssdinQhErRnt - 38?998 197,78) PBsts,RATs9d&TO-Ef dtoEgR3-W (185234) - - NF-TA9f15-t$3M1W, 99537,307 3,843905 218M148 NETA9E S-ROW, $ 105985983 $ 513537 $ 21O578B S39 Nrgrrtestolhebescfirsna AlaTuts 53 aty of Pasco Statement of cash Flans Propietary Funds For the Year Ended December 31,2007 2007 2006 Governmental Business-type Governmental Business-type Business-type Activities Activities Business-type Activities Activities Activities Internal Internal Activities Internal Internal Enterpise Funds Service Funds Service Funds Enterprise Funds Service Funds Service Funds Water/Serer Water/Sever Fund Total Total Fund Total Total CASH FLOW FROM OPERATING ACTIVTIIES: Receipts from Customers $ 16,038,078 $ 4,560,656 $ 490,129 $ 16,098,679 $ 3,413,308 $ 469,398 Payrrents for lvlaintenance&Cps. - (1,406,887) (257,631) 0 (987,531) (370,376) Payments forlvbrchandise (368,384) (372,477) 0 0 Payments for Wages (2,688,916) (2,297,552) 0 0 Payrrentsfor Operating Expenses (3,055,937) (3,742,917) 0 0 Internal Activities-payn>rnts to other funds 0 0 0 Payrrients for Taxes (1,775,130) (1,927,072) 0 0 Payments to Employees - (2,486,796) 0 (2388,650) 0 Net Cash provided(used)hi operating activities 8,149,711 666,973 232,448 7,758,661 37,127 99,022 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES - 0 Nor Year Adjustments 551,470 23,291 (702,579) (796,531) 13,223 (6,658) Transfers In(Out) (777,075) 109,086 (88,869) (123,964) 44,163 (138,875) N-Operating Revenue 756,696 - - 649,503 0 0 Net Cash provided from noncapital financial activities 531,091 132,377 (791,448) (270,992) 57,386 (145,533) CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Capitet Assets (8,332,556) 382,698 295,906 (3,161,542) - Principal Paid on Bonds&Loans (2,697,663) - (2,644,996) Interest Paid on Bonds&Loans (1,133,242) (1,791,743) Oenstnuction Work in Process (4,908,721) (10,237,872) Proceeds of Bonds 835,650 - Payments received from Notes and Loans 1,029,600 - Net Cash Used by Capital&Related Financing Activities (15,206,932) 382,698 295,906 (17,836,153) CASH FLOWS FROM INVESTING ACTIVITIES Interfund Loans - (75,000) (30,000) (381,993) - - Investment AcWtieslnome 575,390 109,516 59,701 759,160 68,153 50,969 Net Cash Provided from Investing Activities 575,390 34,516 29,701 377,167 68,153 50,969 NON CASH ACTIVITIES: Capital Contributions 6,769,301 - - 3,625,333 - - Net Increase(Decrease)in Cash and Cash Equivalents 818,561 1,216,564 (233,393) (6,345,984) 162,666 4,458 Cash and Cash Equivalents January 1 11,849,213 1,664,990 1,350,796 18,195,197 1,502,324 1,346,338 Cash and Cash Equivalents December 31 $ 12,667,774 $ 2,881,554 $ 1,117,403 $ 11,849,213 $ 1,664,990 $ 1,350,796 There mere no noncash activities from investing or fir a ncing in 2007. See accompanying notes to the basic financial statements. 54 city Paso StEtaTat d Cash Rons Rgpietay Rj-&. Fcrt BYea EnJ9d Daoarira-31,2707 2707 2706 Gxsrrrertal Rdrm&W Gxffm rtal mess-type Mnes-s e Pities AcWties a.enesstype Acmes Adl\Aties Pities Interred Irterd Pdi\ities Irtenrol Intend Erterpise Fcr Sermoe Rr&s Same Furl; Ertsprise Rnt Sermoa Rrds Seruoe Rr&i, Vvkter/Sens' Vlkte'/-%Aer R.nd Tdal Total Find Trial Tctd HJC ULA7ICNCFa3EP4 WIMCIVE(WPTOWrCAMW�ACEDBYa A711VGPCIWES W Cpe-alir g InxrrE $ 3,087,512 $ 311,005 $ 162,701 $ 4,769,378 $ 56,451 $ (156,662) AaLsTNuzsTO LECPEPAlll\G INM ETONEFCA5H R3aADED(I EP 13Y aDff?A1NGAm-nE5 DEpmaticn 4,535918 33$132 69,375 3,81$741 17,219 264,018 Chards in assetsaid Iial ilities (Ir eYDaaemeinQstaTffF Awbes (97,229) (3$933) 219 (241,536) 22,314 14,663 (Inaee&eYDaowe in Repaid Epsses 7,367 - (1,572) - (In eaEby amseinImertaies 16,898 (89896) (I r ae a3--YDao wse in Cram Peajwbe (1,172) In mY(Dame)inOstare D-=pcEits 2,832 - - 3Q922 lnmEEd(DaTeme)inAoau sFWe 184,482 56,064 153 (601,136) (60,429) (71,997) Inaea sd(DaEse)in Wdalrred Rn)erty 3,416 - - 2370 Ira sd(Deoease)inDetoOherRr&r (1,331) (553) Inmasd(Deaease)in Ddsred Fame 887 886 Inmasd(Darease)inTa-es Rayede 41,562 - (4592) - lnmase'(Damma)inOmpesatedA)sernes $166 705 4,237 1,572 Inma;e'(Dam e)in Latecarer Rile (2,108) - - - InmEEe( e)inAUTmMrimmCtipcats 36?517 - 79,412 - NA03shRondebygraa6ngPities $ 8,149,711 $ 666,973 $ 232,448 $ 7,75$661 $ 37,127 $ 93,122 SeeammporgndestotheLebicfirendd AAaTe-t& 55 City of Pasco Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2007 2007 2006 Fire Pension Agency Fire Pension Agency Fund Funds Fund Funds ASSETS Cash&Cash Equivalents $ 486,208 $ 164,503 $ 951,548 $ 176,517 Receivables(net of allowances) Other Receivables - - - - Loans Receivable - - - - Interest Receivable 9,204 - 7,437 - Investments, at FMV 3,818,323 - 3,272,760 - Total Assets 4,313,735 164,503 4,231,745 176,517 LIABILITIES Accounts Payable - - - - Due to Others - 164,503 - 176,517 Total Liabilities - 164,503 - 176,517 NET ASSETS Held in Trust for Pension Benefits&Other Purposes $ 4,313,735 $ - $ 4,231,745 $ - See accompanying notes to the basic financial statements. 56 City of Pasco Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the Year Ended December 31, 2007 2007 2006 Fire Pension Fire Pension Fund Fund ADDITIONS Taxes $ 40,123 $ 34,834 Investment Earnings Interest 77,005 50,580 Dividends 212,990 160,071 Net Increase(Decrease)in Fair Value of Investments (66,493) 266,951 Loan Interest - 2,329 Total Additions 263,625 514,765 DEDUCTIONS Pension Benefits 88,581 144,814 Medical Premiums 81,954 66,288 Administrative Expenses 11,100 16,060 Total Deductions 181,635 227,162 Change In Net Assets 81,990 287,603 Prior Year Adjustments - (2,574) NET ASSETS-BEGINNING 4,231,745 3,946,716 NET ASSETS- ENDING $ 4,313,735 $ 4,231,745 See accompanying notes to the basic financial statements. 57 THIS PAGE LEFT BLANK INTENTIONALLY 58 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 as a primary government unit. The City's primary government major operations include police and fire protection including emergency medical response, a municipal court, engineering, street construction and maintenance, planning and zoning, parks and recreation services, a public library and general administrative functions. 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 38, 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 59 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. 60 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 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. 61 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. 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. 62 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 City Street Fund exceeded budgeted appropriations by $73,942. This was a result of increased expenditures for traffic control device maintenance. 63 5. Deficit Fund Equity The following funds report a deficit fund equity position at December 31, 2007. FUND DEFICIT EQUITY BALANCE Arterial Street Fund $ (814,751) Cemetery Fund (75,228) Equip. Rental Op. Fund - W/S (10,856) LID Construction Fund (316,559) The following steps have been taken to eliminate the above deficits: The LID Construction Fund will receive a funds transfer in 2008 for ULID 143 when bonds are funded in 2008 for this project. 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 $53,979 in 2007 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. Increased contributions for operating costs in 2008 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, 2007, the treasurer was holding $14,495,237 in short-term residual investments of surplus cash and $28,301,835 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. 64 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 2007 were approximately $1.7 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 69-70. 3. Receivables Taxes receivable consists of property, sales, gambling, utility taxes and related interest and penalties. (See Note 16, pages 93-94.) 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, 2007, $111,593 in special assessments receivable was delinquent. Of this delinquent amount, $40,139 or 35.97% 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 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 lending/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 65 "internal balances." A separate schedule of interfund loans receivable and payable is furnished in Note 15, pages 92-93. 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 87-90. The restricted assets of the enterprise fund as of December 31, 2007 are composed of the following: Cash and Investments - Debt Service $ 726,361 Cash Deposits 87,233 Total Restricted Assets 813 594 7. Capital Assets and Depreciation - See Note 6, pages 72-75. 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. 66 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 2007. 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 Et Equipment 10 8. Other Property and Investments - See Note 4, pages 69-70. 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. 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 87-90. 67 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 40-41 . 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 Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities on pages 42-43. NOTE 3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY There have been no material violations of finance-related legal or contractual provisions. 68 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 &t Cash Equivalents or Investments of Governmental Activities and within Cash &t Cash Equivalents or Investments of Business-type Activities. The fair market value of investments is based upon quoted market prices as of December 31, 2007. As of December 31, 2007, the City had the following investments: FAIR MARKET MATURITIES VALUE INVESTMENTS Federal Agency Securities 25,323,770 25,385,576 Mutual Funds 1,792,554 2,916,258 Investment in State Treasurer's Investment Pool 2,174,411 2,174,411 Savings Accounts 10,341,695 10,341,695 Total Investments 39,632,420 40,817,940 69 Custodial credit risk is the risk that in event of a failure of the counterparty 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 $40,817,940 in 2007, $9,503,616 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. The following Property Tax Calendar for Franklin County, Washington provides the relevant property tax data for the 2007 tax year. Franklin County, Washington 2007 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. 70 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 2007 was $2.2494 per $1,000 on an assessed valuation of $2,313,863,466 for a total regular levy of $5,204,745. 71 NOTE 6. CAPITAL ASSETS A. Capital Assets Capital assets activity for the year ended December 31, 2007 was as follows: Beginning Ending Balance Balance Governmental Activities 01 /01/07 Increases Decreases 12/31/07 Capital assets, not being depreciated Land $ 5,409,461 $ 317,986 $ 17,000 $ 5,710,447 Construction in Progress 3,134,376 780,920 567,661 3,347,635 Total capital assets, not being depreciated 8,543,837 1,098,906 584,661 9,058,082 Capital assets, being depreciated Buildings 30,892,632 1,473,885 101,549 32,264,968 Improvements other than buildings 7,516,593 716,854 40,217 81193,230 Machinery 8t Equipment 2,760,673 181,811 6501827 2,291,657 Infrastructure (1) 35,170,020 341074,499 0 69,244,519 Equipment Rental 4,506,096 296,206 13,570 4,788,732 Equipment Animal Control 0 70,418 0 70,418 Total capital assets being depreciated 80,846,014 36,813,673 806,163 116,853,524 Less accumulated depreciation (3) for: Buildings 7,407,573 775,082 0 8,182,655 Improvements other than buildings 1,203,170 572,654 0 1,775,824 Machinery Ft Equipment 1,098,227 0 632,316 465,911 Infrastructure (1) 3,357,551 21,023,145 0 24,380,696 Equipment Rental 2,274519 326,438 13,570 2,587,387 Equipment Animal Control 0 25,087 0 25,087 Total accumulated depreciation 15,341,040 22,722,406 645,886 37,417,560 Total capital assets, being depreciated, net 65,504,974 14,091,267 160,277 79,435,964 Governmental activities capital assets net $ 74,048,811 $15,190,173 $ 744,938 $88,494,046 72 (1) - Infrastructure additions reflect retroactive valuation of assets and depreciation as required by GASB 34 reporting implementation requirements. Beginning Ending Balance Balance Business-Type Activities 01/01 /07 Increases Decreases 12/31/07 Capital assets, not being depreciated Land $ 921238 $ 225,548 $ 0 $ 3171786 Construction in Progress 3,269,894 201,519 717,333 2,754,080 Total capital assets, not being depreciated 3,362,132 427,067 717,333 3,071,866 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 37,319,063 664,424 0 37,983,487 Transmission, Distribution 8t Collection Lines (1) 72,7021120 10,749,423 0 83,451,543 General Plant Assets 31208,970 394,605 0 3,603,575 West Pasco Water System 1,328,485 0 0 1,328,485 Plant Acquisition 700,961 0 0 700,961 Industrial Waste Water Plant 15,020,679 182,653 0 15,203,332 Storm Water 2,695,537 511,944 0 3,207,481 Irrigation (1) 17,616,405 707,996 0 18,324,401 Equipment Rental 1,6591288 207,350 0 1,866,638 Total Capital Assets Being Depreciated 1611172055 13,418,395 0 174,590,550 Less accumulated depreciation (3) for: Source of Supply 223,260 6,539 0 229,799 Pumping Plants 3,102,066 359,219 0 3,461,285 Treatment Plants 13,403,399 11544,332 0 14,947,731 Transmission, Distribution Et Collection Lines 13,709,797 1,650,589 0 15,360,386 General Plant Assets 115911906 189,923 0 11781,829 West Pasco Water System 934,216 32,543 0 966,759 Plant Acquisition (2) 350,480 23,365 0 373,845 Industrial Waste Water Plant 2,686,450 307,724 0 2,994,174 Storm Water 124,524 73,510 0 198,034 Irrigation (1) 754,664 371,538 0 1,126,202 Equipment Rental 796,601 82,945 0 879,546 Total accumulated depreciation (4) 37,677,363 4,642,227 0 42,319,590 73 Total capital assets, being depreciated, net 123,4941792 8,776,168 0 132,270,960 Business-type activities capital assets, net $126,856,924 9,203,235 717,333 135,342,826 (1) - These assets are classified as Infrastructure. (2) - Plant Acquisition is accumulated amortization. (3) - Depreciation calculations were changed in 2007 so that all assets accumulate depreciation in the year purchased. (4) - This schedule includes $25,806 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 $ 732,197 Security of Persons E. Property 141,066 Physical Environment 49,919 Economic Environment 358,270 Transportation 21,023,145 Culture Ft Recreation 698,498 Judicial 5,850 Total Depreciation - Governmental Activities $ 23,008,945 Business-Type Activities Water/Sewer Utilities $ 4,603,293 Total Depreciation - Business-Type Activities $ 4,603,293 B. Construction Commitments The City has active construction projects as of December 31, 2007. 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 SR395 Pedestrian Crossing $ 91,992 $ 808,008 RD 28/RD 26 74 Improvements $ 377,015 $ 20,083 Court St Widening - Rd 68 to Rd 84 $1,412,053 $ 300,000 2007 Overlays $ 466,555 $ 133,445 WWTP Expansions $ 133,445 $ 1,350,865 RD 84 Sewer Extension $ 49,176 $ 800,824 2007 W Pasco Sewer Extension Phase 1 $ 1,452,884 $ 47,116 East RD 40/Commercial St. Sewer Extension $ 2,500 $ 397,500 LID 143 $ 311,526 $ 11788,474 Airport A/C Water Line Replacement $ 17,248 $ 862,752 2007 Water Distribution Line Extensions $ 154,519 $ 445, 481 2007 Water Filtration Plant Improvement $ 291,816 $ 123,184 2007 Irrigation System Improvements $ 45,227 $ 604,773 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 CAM 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 defined benefit plan with a defined contribution component. 75 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 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 the age of 60 with 5 years of service, or at the age of 55 with 25 years of service. The annual benefit 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. Plan 1 retirements from inactive status prior to the age of 65 may receive actuarially reduced benefits. The benefit is actuarially reduced to reflect the choice of a survivor option. A cost-of-living allowance (COLA) is granted at age 66 based upon years of service times the COLA amount, increased by three percent annually. Plan 1 members may also elect to receive an additional COLA amount (indexed to the Seattle Consumer Price Index), capped at three percent annually. To offset the cost of this annual adjustment, the benefit is reduced. 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 the age of 55 with 20 years of service, 76 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. The benefit is also actuarially reduced to reflect the choice of a survivor option. 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. Effective July 7, 2006, Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or after five years of service, if twelve months of that service are earned after age 44; or after five service credit years earned in PERS Plan 2 prior to June 1, 2003. Plan 3 members are immediately vested in the defined contribution portion of their plan. Vested Plan 3 members are eligible to retire with full benefits at age of 65, or at age 55 with 10 years of service. 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 3 percent per year reduction applies; otherwise an actuarial reduction will apply. The benefit is also actuarially reduced to reflect the choice of a survivor option. 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. Beginning January 1, 2007 through December 31, 2007, judicial members of PERS may choose to participate in the Judicial Benefit Multiplier Program (JBM). Current justices or judges in PERS Plan 1 and 2 may make a one-time irrevocable election to pay increased contributions that would fund a retirement benefit with a 3.5 percent multiplier. The benefit would be capped at 75 percent of average financial compensation. Judges in PERS Plan 3 can elect a 1.6 percent of pay per year of service benefit, capped at 37.5 percent of average compensation. 77 Members who choose to participate in JBM will accrue service credit at the higher multiplier beginning with the date of their election, pay higher contributions, stop contributing to the Judicial Retirement Account (JRA), and be given the option to increase the multiplier on past judicial service. Members who do not choose to participate will: continue to accrue service credit at the regular multiplier; continue to participate in the JRA, if applicable; never be a participant in the JBM Program; and continue to pay contributions at the regular PERS rate. Justices and judges who are newly elected or appointed to judicial service and choose to become PERS members on or after January 1, 2007, or who have not previously opted into PERS membership, are required to participate in the JBM Program. Justices and judges who are newly elected or appointed to judicial service will: return to prior PERS Plan if membership had previously been established; be mandated into Plan 2 and not have a Plan 3 transfer choice, if a new PERS member; accrue the higher multiplier for all judicial service; not contribute to JRA; and not have the option to increase the multiplier for past judicial service. There are 1,188 participating employers in PERS. Membership in PERS consisted of the latest actuarial valuation data for the plans as of September 30, 2006: Retirees and Beneficiaries Receiving Benefits 70,201 Terminated Plan Members Entitled To But Not Yet Receiving Benefits 25,610 Active Plan Members Vested 105,215 Active Plan Members Non-vested 49,812 Total 250,838 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 for state agencies and local government unit employees, and at 7.5 percent for state government elected officials. 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. Under 78 PERS Plan 3, employer contributions finance the defined benefit portion of the plan, and member contributions finance the defined contribution portion. 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. As a result of the implementation of the Judicial Benefit Multiplier Program in January 2007, a second tier of employer and employee rates was developed to fund, along with investment earnings, the increased retirement benefits of those justices and judges that participate in the program. 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, 2007, were as follows: Members not participating in JBM: PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer* 6.13%** 6.13% 6.13%*** Employee 6.00%**** 4.15%**** ***** * The employer rates do not include the employer administrative expense fee currently set at 0.16%. ** The employer rate for state elected officials is 9.12% for Plan 1 and 6.13% for Plan 2 and 3. *** Plan 3 defined benefit portion only. *** The employee rate for state elected officials is 7.50% for Plan 1 and 4.15% for Plan 2. ***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member. Members participating in JBM: PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer-State Agency* 8.63% 8.63% 8.63%** Employer-Local Govt.* 6.13% 6.13% 6.13%** Employee-State Agency 9.76% 7.88% 7.50%*** Employee-Local Govt. 12.26% 10.38% 7.50%*** 79 * The employer rates do not include the employer administrative expense fee currently set at 0.16%. * Plan 3 defined benefit portion only. * Minimum rate. 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 2007 $ 33,638 $ 356,299 $ 62,010 2006 19,131 180,984 35,058 2005 11,516 103,417 19,608 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. 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. Membership in the system includes all full-time, fully compensated, local law enforcement officers and firefighters. LEOFF membership is comprised primarily of non-state employees, with Department of Fish and Wildlife enforcement officers, who were first included prospectively effective July 27, 2003, being an exception. In addition, effective July 24, 2005, current members of PERS who are emergency medical technicians can elect to become members of LEOFF Plan 2. 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. LEOFF defined benefits are financed from a combination of investment earnings, 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: 80 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 actuarially reduced for each year that the benefit commences prior to age 53 and to reflect the choice of a survivor option. If the member has at least 20 years of service and is age 50, the reduction is 3 percent for each year 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 383 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the plans of September 30, 2006: Retirees and Beneficiaries Receiving Benefits 8,951 Terminated Plan Members Entitled To But Not Yet Receiving Benefits 602 Active Plan Members Vested 12,711 Active Plan Members Non-vested 3,603 Total 25,867 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 81 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 LEOFF Plan 2 Retirement Board. All employers are required to contribute at the level required by state law. The Legislature by means of a special funding arrangement appropriated money from the state General Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the requirements of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. 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, 2007 were as follows: LEOFF Plan 1 LEOFF Plan 2 Employer* 0.16% 5.35%** Employee 0.00% 8.64% State N/A 3.45% * The employer rates do not include the employer administrative expense fee currently set at 0.16%. **The employer rate for ports and universities is 8.80%. Both the City and the employees made the required contributions. The City required contributions for the year ended December 31 , were as follows: LEOFF Plan 1 LEOFF Plan 2 2007 $ 765 $404,634 2006 815 351,698 2005 827 234,821 The City does not have any employees enrolled in the Public Safety Employee's Retirement System (PSERS) Plan 2. 82 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, 2007, 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 301 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. 83 The following 10-year table of historical trend information shows the system's progress in accumulating sufficient assets to pay benefits when due: 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 2007 4,316,568 135.74% (1,136,498) 80,074 (1419.31%) 2006 4,231,745 146.38% (1,340,772) 92,979 (1442.02%) 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%) * 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 2007. 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% 84 The following is the three-year historical data of Revenues and Expenditures. Fire Pension Historical Data Revenues Expenditures Interest Fire Ins. Total Income Prem. Tax Revenues Pension Costs 2007 292,828 40,123 332,951 181,635 2006 200,080 34,834 2341914 2271162 2005 153,567 32,104 185,671 124,948 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 of Pasco 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 126 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, stop gap, 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. The excess layer is insured by the purchase of reinsurance and insurance and is subject to aggregate limits. Total limits are $15 million per occurrence subject to aggregate sub-limits in the excess layers. The Board of Directors determines the limits and terms of coverage annually. 85 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, , 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. 86 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 $ 1,200,000 2001 CLID 135 Bond 5.75% 11/2012 536,975 120,000 2001 LTGO Bond 2.00-4.70% 12/1/2020 6,900,000 5,690,000 2002 LTGO &t 5.72% Refunding Bond 4/1/2022 3,635,000 21965,000 2002 UTGO Refunding 2.50-4.00% Bond 12/11/2013 3,155,000 1,995,000 Total $ 15,926,975 $ 11,970,000 87 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 2008 $ 935,000 $ 531,865 0 0 2009 990,000 495,025 0 0 2010 1,055,000 455,200 0 0 2011 1,085,000 410,878 0 0 2012 1,075,000 364,633 0 0 2013-2017 4,150,000 1,187,831 0 0 2018-2022 2,680,000 284,520 0 0 Total $11,970,000 $ 3,729,952 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% 6/11/2018 $ 2,255,000 $ 1,520,000 1998 Water/Sewer Series B Bonds 3.80-4.60% 6/11/2014 6,725,000 4,710,000 1998 Water/Sewer Series C Bonds 3.70-4.80% 6/1/2014 1,515,000 415,000 1999 Water/Sewer Bonds 4.10-5.80% 9/1/2016 985,000 585,000 2001 Water/Sewer Bonds 3.50-4.85% 9/1/2016 995,000 675,000 2002 Water/Sewer Bonds 2.00-4.70% 12/1/2022 5,945,000 4,810,000 2005 Water/Sewer Bonds 3.50-4.25% 12/5/2025 4,400,000 4,060,000 2007 Water/Sewer Bonds 4.25-4.75% 9/01/2022 845,000 845,000 Total $ 23,665,000 $ 17,620,000 88 Revenue bond debt service requirements to maturity are as follows: Year Ending December 31 Principal Interest 2008 $ 1,375,000 $ 770,415 2009 1,405,000 706,105 2010 1,460,000 644,913 2011 1,505,000 580,698 2012 1,455,000 516,419 2013-2017 5,870,000 1,668,390 2018-2022 3,660,000 660,484 2023-2027 890,000 76,136 Total $ 17,620,000 $ 5,623,558 Loan and Note obligations currently outstanding are as follows: Original Interest Maturity Bond Remaining Purpose Rate Date Amount Balance State LOCAL Loan - Fire Truck 5.72% 6/1/2009 $ 225,000 $ 55,392 State LOCAL Loan - Animal Control 6.24% 12/1/2016 275,500 196,028 State LOCAL Loan - Patrol 3.18777% 12/1/2008 161,640 42,291 4.50- TRAC Loan 5.50% 12/1/2014 1,197,931 602,070 Port of Pasco Airport Fire Building 4.00% 7/12/2016 120,000 105,771 PWTF Loan #89036 - Water Tank 3.00% 7/24/2009 1,245,000 123,123 State Revolving Loan 1.00% 10/31/2015 23,700,000 16,751,468 PWTF Loan #95025 - Sewer Plant 1.00% 6/30/2015 812,700 344,090 PWTF Loan #95026 - Water Reservoir 1.00% 6/30/2015 2,687,300 859,002 PWTF Loan #691043 1.00% 6/30/2020 1,890,000 1,444,825 Total $ 32,315,074 $ 20,524,060 89 Loan and Note debt service requirements to maturity are as follows: Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest 2008 $ 173,336 $ 48,282 $ 1,466,662 $ 605,324 2009 133,508 40,794 1,507,037 561,102 2010 109,950 34,570 1,487,276 515,454 2011 120,281 29,148 1,530,553 469,563 2012 121,894 23,167 1,575,358 422,143 2013-2017 342,582 33,338 8,305,445 1,343,558 2018-2022 0 0 3,650,177 154,278 2023-2027 0 0 0 0 Total $ 1,001,552 $ 209,299 $ 19,522,508 $ 4,071,422 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, 2007, the City has $294,868 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 $726,361 in sinking funds and reserves as required by bond indentures. B. Refunded Debt The City did not issue any refunded debt during 2007. NOTE 11. LEASES The City does not currently have any capital or operating leases. 90 NOTE 12. CHANGES IN LONG-TERM LIABILITIES During the year ended December 31, 2007, the following changes occurred in long-term liabilities: Beginning Ending Balance Balance Due Within 01 /01/07 Additions Reductions 12/31/07 One Year Governmental Activities: Bonds Payable: General obligation bonds, special assessment debt with govt. commitment $121955,000 $ 0 $ 985,000 $11,970,000 $ 935,000 Loans and Notes 1,227,725 0 177074 1,050,551 172,923 Compensated Absences 1,427,892 4,200 0 1,432,092 1,432,092 Governmental Activity Long-Term Liabilities $15,610,617 $ 4,200 $1,162,174 $14,452,643 $2,540,015 Beginning Ending Balance Balance Due Within 01/01/07 Additions Reductions 12/31 /07 One Year Business-Type Activities: Bonds Payable: General obligation bonds, revenue bonds $18,045,000 $ 845,000 $1,270,000 $17,620,000 $1,375,000 Loans and Notes 20,9501171 0 1,427,663 19,522,508 1,466,662 Compensated Absences 159,874 8,166 0 168,040 168,040 Business-Type Activity Long-Term Liabilities $39,155,045 $ 853,166 $2,697,663 $37,310,548 $3,009,702 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. 91 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 requests for reimbursement to grantor agencies for expenditures disallowed under the terms of the grants. However, City management believes that such disallowances, if any, will be immaterial. NOTE 14. RESTRICTED NET ASSETS The government-wide statement of net assets reports $4,783,185 of restricted net assets, of which $4,783,185 is restricted by enabling legislation. 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 92 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 Loan Balances Interfund balances at December 31, 2007 were as follows: Due From All Other Purpose Funds Total General Fund Start-up loans for new funds &t neg. cash balance loans $1,501,800 $1,501,800 Water/Sewer Fund LID loans 8t Equip Rental Op 28,100 28,100 All Other Funds LID and Capital Imp. loans 174,100 174,100 Total $1,704,000 $1,704,000 B. Interfund Transfers Interfund transfers at December 31, 2007 were as follows: Transfer From C General Water/Sewer All Other L Fund Fund Funds Total General Fund $ 0 $ 0 $ 91,125 $ 91,125 Water/Sewer Fund 0 650,000 297,186 947,186 fu All Other Funds 1,377,078 1,074,261 2,570,231 5,021,570 Total 1 $1,377,078 $ 1,724,261 $2,958,542 $6,059,881 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, 2007 were as follows: ACCOUNTS: AMOUNTS Governmental Activities: Taxes $2,719,114 Customer Accounts 5,161509 Due from Other Funds 201000 93 Interest Receivable 1321164 Other Receivables 977,646 Total Governmental Activities $9,010,433 Business-type Activities: Utility Receivables $ 911,823 Other Receivables 253,271 Interfund Loan Receivable 28,100 Interest Receivable 71,833 Total Business-type Activities: $11265,027 Special Assessment receivables represent $2,853,398 of the balance of outstanding Customer Accounts receivable at year end December 31, 2007. Of this amount $111,593 represents delinquent Special Assessments receivable. B. PAYABLES Payables at December 31, 2007, were as follows: ACCOUNTS: AMOUNTS Governmental Activities: Accounts Payable $ 1,665,054 Interfund Loans Payable 281100 Due to Other Govt. Units 76,320 Deposits Payable 383,822 Unclaimed Property 3,422 Other Payables 115,145 Claims Incurred Not Reported 125,000 Deferred Revenue 4,100,410 Due within One Year 2,540,015 Due in More than One Year 11,912,628 Total Governmental Activities $20,949,916 Business-type Activities: Accounts Payable $ 633,790 Due to Other Govt. Units 711025 Retainage Payable 180,777 Interest Payable 3921113 Deposits Payable 871233 Deferred Revenue 1,114y327 Unamortized Discount (7,937) Unclaimed Property 201988 Due within One Year 3,009,701 Due in More than One Year 34,300,847 Total Business-type Activities: $39,802,864 94 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. 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 2007 for these transactions was $114,084. The City of Pasco's equity interest in BI-PIN was $272,758 on December 31, 2007, which is reported as investment in joint ventures 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. 95 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. The total amount paid by EMS in 2007 for these services was $2,400. The City of Pasco's equity interest in EMS was $3,824 on December 31, 2007, which is reported as an investment in joint ventures 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 96 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 $23,402 on June 30, 2007, which is reported as an investment in joint ventures 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 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 2007, the City paid Franklin County $286,466 in operating expenses and $101,947 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. 97 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 $311,607 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. TERMINATION BENEFITS The City currently does not have an inducement program to hasten the termination of an employee's services or ask for voluntary terminations. Upon termination, an employee is paid 100% of their accrued vacation and accrued compensation time. Sick time is paid out at the rate of 25% of the accrued time. These amounts are paid to the employee in their last check which is processed in the next available payroll period. Payroll is processed every other week. Sick time and vacation time accrued liabilities are reflected in the Statement of Net Assets. NOTE 22. POLLUTION REMEDIATION OBLIGATIONS The City does not have any pollution remediation obligations. NOTE 23. OTHER DISCLOSURES A. Prior Period Adjustments Prior period adjustments consist of the following: 98 Adjustments were made in the General Fund for prior year corrections, they consist of: $11,379 corrections to the deposits payable account; ($56,930) adjustment for LTGO Bond payments to the Stadium Fund. An adjustment was made to the City Street Fund for $8,627 to reverse a receivable that was for the General Fund. An adjustment of $30,113 was made to the Arterial Street fund for prior year motor vehicle fuel taxes. An adjustment of $1,301 was made to the Ambulance Fund for prior year payable posted in error to the Water/Sewer Fund. An adjustment of $2,691 was made to the Cemetery Fund to correct errors in prior years' sales tax payable to the State. An adjustment of $30 was made to the Athletic Fund to correct the accounts receivable balance. An adjustment of $625 was made to the Senior Center Fund to correct deposits payable from prior years. An adjustment of $60,220 was made to the Capital Improvements Fund to move revenues received in 2007 that should have been recorded as 2006 revenue. An adjustment of $151,386 was made to the Industrial Development Fund to record expenditures for 2006 that were paid in 2007 as prior year. An adjustment of $5,704 was made to the Stadium/Convention Center Fund for prior year leasehold excise tax adjustments and $56,930 was received from the General Fund for prior year bond payment adjustments. Adjustments were made in Equipment Rental Replacement Fund Govt. - $23,675 and in Equipment Rental Replacement Fund Enterprise - $702,579 to account for changes in asset inventory prior to 2007. A correction of $547,497 was made to the Water/Sewer Fund to reflect the December 2006 SRF Loan payment made in January 2007. An adjustment of $408,069 was made to adjust depreciation to reflect corrections for prior year. An adjustment of $1,648 was made to the Central Stores Fund for inventory. 99 An adjustment of $384 was made to the Medical/Dental fund for a refund check for a prior year period. An adjustment of $128,340 was made in LID Assessments to reflect the adjustment of total assessments receivable for actual costs. An adjustment of $13,176,098 was made to record infrastructure and its associated depreciation from 1980 to 2002. 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. 100 THIS PAGE INTENTIONALLY BLANK 101 City of Pasco Combining Balance Sheet Other Governmental Funds December 31,2007 Special Revenue Funds 110 120 125 130 City Street Arterial Street 1-182 Impact Street Overlay Fund Fund Fund Fund ASSETS Current Cash&Cash Equivalents $ 256,214 $ 140,930 $ 588,298 $ 1,186,261 Receivables(net of allowances) Taxes 16,518 - - 66,238 Customer Accounts 18,856 - - - Interfund Loans Receivable - 4,100 - - Interest Receivable 1,900 (1,612) 3,139 7,643 Other Receivables 179,640 195,886 - 2,217 Restricted Assets - - - - TOTAL ASSETS $ 473,128 $ 339,304 $ 591,437 $ 1,262,359 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 207,283 $ 154,055 $ - $ - Matured Bonds - - - - Interfund Loans Payable - 1,000,000 - - Due to Other Governmental Units - - - - Bonds, Notes, Loans Payable - - - - Interest Payable - - - - Deferred Revenue - - - - Other - - - - Total Liabilities $ 207,283 $ 1,154,055 $ - $ - Fund Balances Reserved for: Advances to Other Funds $ - $ 4,100 $ - $ - Debt Service - - - - Capital Improvements - - - - Other Reserves - - - - Unreserved, Reported in: Special Revenue Funds $ 265,845 $ (818,851) $ 591,437 $ 1,262,359 Debt Service Funds - - - - Capital Project Funds - - - - Total Fund Balances $ 265,845 $ (814,751) $ 591,437 $ 1,262,359 TOTAL LIABILITIES AND FUND BALANCES $ 473,128 $ 339,304 $ 591,437 $ 1,262,359 See accompanying notes to the basic financial statements. 102 Special Revenue Funds 140 145 150 155 160 Comm. Dev. MLK Comm. Ambulance Contingency Cemetery Block Grant Center Fund Fund Fund $ 79,922 $ 20,860 $ 51,075 $ 157,745 $ 73,895 222,686 - 338,009 - 26,576 (113) 108 (234) 866 367 157,724 - - - - $ 460,219 $ 20,968 $ 388,850 $ 158,611 $ 100,838 $ 55,086 $ 4,662 $ 17,736 $ - $ 6,016 275,000 - 210,000 - 170,000 - - - - 50 500 - - - - $ 330,586 $ 4,662 $ 227,736 $ - $ 176,066 $ 129,633 $ 16,306 $ 161,114 $ 158,611 $ (75,228) $ 129,633 $ 16,306 $ 161,114 $ 158,611 $ (75,228) $ 460,219 $ 20,968 $ 388,850 $ 158,611 $ 100,838 Continued on next page 103 City of Pasco Combining Balance Sheet Other Governmental Funds December 31,2007 Special Revenue Funds 165 170 180 181 Athletic Senior Multi-Modal Bi-Centenial Fund Center Facility Fund ASSETS Current Cash&Cash Equivalents $ 67,670 $ 33,230 $ 9,711 $ 5,718 Receivables(net of allowances) Taxes - - - - Customer Accounts - 1,190 - - Interfund Loans Receivable - - - - Interest Receivable 315 76 56 31 Other Receivables - - - Restricted Assets - - - - TOTAL ASSETS $ 67,985 $ 34,496 $ 9,767 $ 5,749 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 6,005 $ 9,651 $ 4,344 $ - Matured Bonds - - - - Interfund Loans Payable - - - - Due to Other Governmental Units - 657 1,603 - Bonds, Notes, Loans Payable - - - - Interest Payable - - - - Deferred Revenue - 1,612 - - Other - 50 1,500 - Total Liabilities $ 6,005 $ 11,970 $ 7,447 $ - Fund Balances Reserved for: Advances to Other Funds $ - $ - $ - $ - Debt Service - - - - Capital Improvements - - - - Other Reserves - - - - Unreserved, Reported in: Special Revenue Funds $ 61,980 $ 22,526 $ 2,320 $ 5,749 Debt Service Funds - - - - Capital Project Funds - - - - Total Fund Balances $ 61,980 $ 22,526 $ 2,320 $ 5,749 TOTAL LIABILITIES AND FUND BALANCES $ 67,985 $ 34,496 $ 9,767 $ 5,749 See accompanying notes to the basic financial statements. 104 Special Revenue Funds 185 188 189 190 191 192 Rivershore Trail Spec Assess Litter Revolving TRAC Dev. & Park Fund Lodging Fund Abatement Abatement Operating Fund Fund $ 7,279 16,632 $ 13,195 $ 248,423 $ 29,502 $ 1,670,630 4,893 - 2,050 10,607 - - 41 91 13 1,388 (172) 9,158 23,371 - - 27,457 - $ 12,213 $ 40,094 $ 15,258 $ 260,418 $ 56,787 $ 1,679,788 $ 124 $ 15,407 $ 4,470 $ 30,392 $ - $ - 87 - - - - - $ 211 $ 15,407 $ 4,470 $ 30,392 - - - - - 1,732,618 $ 12,002 $ 24,687 $ 10,788 $ 230,026 $ 56,787 $ (52,830) $ 12,002 $ 24,687 $ 10,788 $ 230,026 $ 56,787 $ 1,679,788 $ 12,213 $ 40,094 $ 15,258 $ 260,418 $ 56,787 $ 1,679,788 Continued on next page 105 City of Pasco Combining Balance Sheet Other Governmental Funds December 31,2007 Special Revenue Funds 193 194 195 Capital Indust. Devel. Stadium/ Improvement &Infrastructure Conv.Center Total ASSETS Current Cash&Cash Equivalents $ 3,783,038 $ 571,848 $ 36,440 $ 9,048,516 Receivables(net of allowances) Taxes - - - 82,756 Customer Accounts - - - 624,867 Interfund Loans Receivable - - - 4,100 Interest Receivable 20,595 3,140 151 46,947 Other Receivables 32,554 - 27,457 646,306 Restricted Assets - - - - TOTAL ASSETS $ 3,836,187 $ 574,988 $ 64,048 $ 10,453,492 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ - $ - $ 10,965 $ 526,196 Matured Bonds - - - - Interfund Loans Payable - - - 1,655,000 Due to Other Governmental Units - - 1,303 3,700 Bonds, Notes, Loans Payable - - - - Interest Payable - - - - Deferred Revenue - - - 1,612 Other - - 920 2,970 Total Liabilities $ - $ - $ 13,188 $ 2,189,478 Fund Balances Reserved for: Advances to Other Funds $ - $ - $ - $ 4,100 Debt Service - - - - Capital Improvements - - - - Other Reserves - - - 1,732,618 Unreserved, Reported in: Special Revenue Funds $ 3,836,187 $ 574,988 $ 50,860 $ 6,527,296 Debt Service Funds - - - - Capital Project Funds - - - - Total Fund Balances $ 3,836,187 $ 574,988 $ 50,860 $ 8,264,014 TOTAL LIABILITIES AND FUND BALANCES $ 3,836,187 $ 574,988 $ 64,048 $ 10,453,492 See accompanying notes to the basic financial statements. 106 Debt Service Funds 272 273 625 709-797 Library/Fire 2002 UTGO LID LID Station Bonds Bonds Guaranty Funds Total $ 90,310 $ 204,558 $ 1,648,801 $ 880,644 $ 2,824,313 9,478 23,419 - - 32,897 - - - 3,397,596 3,397,596 858 2,030 9,054 5,605 17,547 $ 100,646 $ 230,007 $ 1,657,855 $ 4,283,845 $ 6,272,353 49,000 49,000 120,000 120,000 3,072,456 3,072,456 $ - $ - $ - $ 3,241,456 $ 3,241,456 69,018 - 1,146,215 1,042,389 2,257,622 31,628.00 230,007.00 511,640 - 773,275 $ 100,646 $ 230,007 $ 1,657,855 $ 1,042,389 $ 3,030,897 $ 100,646 $ 230,007 $ 1,657,855 $ 4,283,845 $ 6,272,353 Continued on next page 107 City of Pasco Combining Balance Sheet Other Governmental Funds December 31, 2007 Capital Project Funds Capital Project 700 Construction LID Fund Construction Total ASSETS Current Cash &Cash Equivalents $ 101,794 $ 404 $ 102,198 Receivables (net of allowances) Taxes - - - Customer Accounts - - - Interfund Loans Receivable - - - Interest Receivable - 2 2 Other Receivables - - - Restricted Assets - - - TOTAL ASSETS $ 101,794 $ 406 $ 102,200 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 8,959 $ 306,965 $ 315,924 Matured Bonds - - - Interfund Loans Payable - - - Due to Other Governmental Units - - - Bonds, Notes, Loans Payable - - - Interest Payable - - - Deferred Revenue - - - Other - 10,000 10,000 Total Liabilities $ 8,959 $ 316,965 $ 325,924 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 (316,559) (223,724) Total Fund Balances $ 92,835 $ (316,559) $ (223,724) TOTAL LIABILITIES AND FUND BALANCES $ 101,794 $ 406 $ 102,200 See accompanying notes to the basic financial statements. 108 Permanent Funds 605 606 610 621 Cemetery Cemetery Blvd. Perpetual Landfill Perpetual Care Pre-Need Fund Maint. Fund Remediation Total $ 338,540 $ 61,310 $ 1,219,601 $ 117,324 $ 1,736,775 1,996 - - 1,996 1,946 349 6,994 645 9,934 $ 340,486 $ 63,655 $ 1,226,595 $ 117,969 $ 1,748,705 100,000 100,000 $ - $ - $ - $ 100,000 $ 100,000 340,486 63,655 1,226,595 17,969 1,648,705 $ 340,486 $ 63,655 $ 1,226,595 $ 17,969 $ 1,648,705 $ 340,486 $ 63,655 $ 1,226,595 $ 117,969 $ 1,748,705 Continued on next page 109 City of Pasco Combining Balance Sheet Other Governmental Funds December 31, 2007 2007 2006 Total Other Total Other Governmental Governmental Funds Funds ASSETS Current Cash & Cash Equivalents $ 13,711,802 $ 12,502,535 Receivables (net of allowances) Taxes 115,653 111,437 Customer Accounts 4,024,459 4,210,717 Interfund Loans Receivable 4,100 - Interest Receivable 74,430 63,496 Other Receivables 646,306 453,229 Restricted Assets - - TOTAL ASSETS $ 18,576,750 $ 17,341,414 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 842,120 $ 323,210 Matured Bonds - - Interfund Loans Payable 1 ,704,000 2,204,153 Due to Other Governmental Units 3,700 8,790 Bonds, Notes, Loans Payable 120,000 190,000 Interest Payable - - Deferred Revenue 3,074,068 3,068,947 Other 112,970 167,249 Total Liabilities $ 5,856,858 $ 5,962,349 Fund Balances Reserved for: Advances to Other Funds $ 4,100 $ - Debt Service 2,257,622 2,487,644 Capital Improvements - - Other Reserves 3,381,323 3,234,940 Unreserved, Reported in: Special Revenue Funds $ 6,527,296 $ 6,144,182 Debt Service Funds 773,275 670,640 Capital Project Funds (223,724) (1 ,158,341 Total Fund Balances $ 12,719,892 $ 11 ,379,065 TOTAL LIABILITIES AND FUND BALANCES $ 18,576,750 $ 17,341,414 See accompanying notes to the basic financial statements. 110 THIS PAGE INTENTIONALLY LEFT BLANK III City of Pasco Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31, 2007 Special Revenue Funds 110 120 125 130 140 City Street Arterial Street 1-182 Impact Street Overlay Comm. Dev. REVENUES Fund Fund Fund Fund Block Grant Taxes $ 184,291 $ - $ - $ 738,507 $ - Licenses& Permits 214,554 - - - - Intergovernmental Revenue 785,415 496,461 - - 605,284 Charges for Services - - - - 4,718 Fines& Forfeitures - - - - - Investment Income 11,610 8,316 22,810 63,381 933 Miscellaneous Revenue 793 15,894 165,529 - 3,468 Total Revenues $ 1,196,663 $ 520,671 $ 188,339 $ 801,888 $ 614,403 EXPENDITURES Current: General Government $ - $ - $ - $ - $ - Judicial - - - - - Public Safety - - - - 65,088 Physical Environment - - - - - Transportation 1,481,142 - - - - Health and Human Services - - - - - Economic Environment - - - - 85,167 Culture and Recreation - - - - - CapitalOutlay - 2,179,592 - 525,235 371,225 Debt Service Principal - - - - - Interest - - - - - Total Expenditures $ 1,481,142 $ 2,179,592 $ - $ 525,235 $ 521,480 Excess of Revenues Over(Under) Expenditures (284,479) $ (1,658,921) $ 188,339 $ 276,653 $ 92,923 OTHER FINANCING SOURCES (USES) Disposition of Capital Assets $ - $ - $ - $ - $ - Proceeds of General L-T Debt - - - - - Insurance Recoveries 2,710 - - - - Transfers-(In) 300,000 837,030 - - - Transfers-(Out) - - (37,030) (450,000) (101,250) Total Other Financing Sources(Uses) $ 302,710 $ 837,030 $ (37,030) $ (450,000) $ (101,250) Net Change in Fund Balances $ 18,231 $ (821,891) $ 151,309 $ (173,347) $ (8,327) Prior Year Adjustments $ (8,627) $ 30,113 $ - $ - $ - Fund Balance Beginning $ 256,241 $ (22,973) $ 440,128 $ 1,435,706 $ 137,960 Fund Balance, Ending $ 265,845 $ (814,751) $ 591,437 $ 1,262,359 $ 129,633 See accompanying notes to the basic financial statements. 112 Special Revenue Funds 145 150 155 160 165 170 180 MILK Comm. Ambulance Contingency Cemetery Athletic Senior Multi-Modal Center Fund Fund Fund Fund Center Facility - 1,439 - - - 19,509 - 4,180 1,287,100 - 222,876 79,824 - - 707 (5,817) 7,142 4,726 2,303 (87) 534 30,397 17,764 - 2,406 548 60,841 56,785 $ 35,284 $ 1,300,486 $ 7,142 $ 230,008 $ 82,675 $ 80,263 $ 57,319 1,800,018 - - - - - - - - 232,915 - - - - - - 56,341 - - - - - 31,087 - 123,331 - - - 74,467 219,435 - - 29,131 - - - - - - - - 9,168 - - - $ 123,331 $ 1,829,149 $ - $ 242,083 $ 74,467 $ 250,522 $ 56,341 $ (88,047) $ (528,663) $ 7,142 $ (12,075) $ 8,208 $ (170,259) $ 978 95,000 420,475 - 63,363 - 188,250 - $ 95,000 $ 420,475 $ - $ 63,363 $ - $ 188,250 $ - $ 6,953 $ (108,188) $ 7,142 $ 51,288 $ 8,208 $ 17,991 $ 978 $ - $ 1,301 $ - $ 2,691 $ (30) $ 625 $ - $ 9,353 $ 268,001 $ 151,469 $ (129,207) $ 53,802 $ 3,910 $ 1,342 $ 16,306 $ 161,114 $ 158,611 $ (75,228) $ 61,980 $ 22,526 $ 2,320 Continued on next page. 113 City of Pasco Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31, 2007 Special Revenue Funds 181 185 188 189 190 Bi-Centenial Rivershore Trail Spec. Lodging Litter Revolving REVENUES Fund Fund Fund Abatement Abatement Taxes $ - $ - $ 192,933 $ - $ - Licenses& Permits - - - - - Intergovernmental Revenue - - - - - Charges for Services - - - 3,750 (20,305) Fines& Forfeitures - - - - 38,195 Investment Income 259 528 582 (93) 13,153 Miscellaneous Revenue - 10,650 - 5,938 39,433 Total Revenues $ 259 $ 11,178 $ 193,515 $ 9,595 $ 70,476 EXPENDITURES Current: General Government $ - $ - $ - $ - $ - Judicial - - - - - Public Safety - - - - - Physical Environment - - - 18,075 - Transportation - - - - - Health and Human Services - - - - - Economic Environment - - 169,562 - 107,796 Culture and Recreation - 19,018 - - - Capital Outlay - - - - - Debt Service Principal - - - -Interest - - - - - Total Expenditures $ - $ 19,018 $ 169,562 $ 18,075 $ 107,796 Excess of Revenues Over(Under) Expenditures 259 $ (7,840) $ 23,953 $ (8,480) $ (37,320) OTHER FINANCING SOURCES (USES) Disposition of Capital Assets $ - $ - $ - $ - $ - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Transfers-(In) - - - 15,000 - Transfers-(Out) - - - - Total Other Financing Sources(Uses) $ - $ - $ - $ 15,000 $ - Net Change in Fund Balances $ 259 $ (7,840) $ 23,953 $ 6,520 $ (37,320) Prior Year Adjustments $ - $ - $ - $ - $ - Fund Balance Beginning $ 5,490 $ 19,842 $ 734 $ 4,268 $ 267,346 Fund Balance, Ending $ 5,749 $ 12,002 $ 24,687 $ 10,788 $ 230,026 See accompanying notes to the basic financial statements. 114 Special Revenue Funds 191 192 193 194 195 TRAC Dev. & Park Capital Indust. Devel. Stadium/ Operating Fund Fund Improvement & Infrastructure Conv. Center Total $ 208,296 $ - $ 702,371 $ - $ 208,311 $ 2,234,709 - - - - - 214,554 - - - 1,259,387 3,167,495 210,366 - - - 1,792,509 - - - - - 38,195 (1,432) 78,739 158,613 25,921 7,303 400,131 - - - - 26,585 437,031 $ 206,864 $ 289,105 $ 860,984 $ 25,921 $ 1,501,586 $ 8,284,624 - 1,865,106 - - 250,990 - - - - - 1,537,483 - - - - - 31,087 - - - - - 362,525 286,466 - - - 104,958 827,675 - 14,000 - - 3,119,183 70,345 - - - 95,000 165,345 31,602 - - - 32,975 73,745 $ 388,413 $ - $ 14,000 $ - $ 232,933 $ 8,233,139 $ (181,549) $ 289,105 $ 846,984 $ 25,921 $ 1,268,653 $ 51,485 - - - - - 2,710 205,000 - - - - 2,124,118 - (54,988) (46,794) - (1,257,937) (1,947,999) $ 205,000 $ (54,988) $ (46,794) $ - $ (1,257,937) $ 178,829 $ 23,451 $ 234,117 $ 800,190 $ 25,921 $ 10,716 $ 230,314 $ - $ - $ (60,220) $ 151,386 $ 62,634 $ 179,873 $ 33,336 $ 1,445,671 $ 3,096,217 $ 397,681 $ (22,490) $ 7,853,827 $ 56,787 $ 1,679,788 $ 3,836,187 $ 574,988 $ 50,860 $ 8,264,014 Continued on next page. 115 City of Pasco Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31, 2007 Debt Service Funds 272 273 625 709-797 Library/Fire 2002 UTGO LID LID REVENUES Station Bonds Bonds Guaranty Assessments Total Taxes $ 172,356 $ 386,948 $ - $ - $ 559,304 Licenses& Permits - - - - - Intergovernmental Revenue - - - - - Charges for Services - - - - - Fines& Forfeitures - - - - - Investment Income 6,863 16,356 72,219 63,757 159,195 Miscellaneous Revenue - - - 523,323 523,323 Total Revenues $ 179,219 $ 403,304 $ 72,219 $ 587,080 $ 1,241,822 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 100,000 295,000 - 84,750 479,750 Interest 70,503 86,591 - 13,506 170,600 Total Expenditures $ 170,503 $ 381,591 $ 13 $ 98,256 $ 650,363 Excess of Revenues Over(Under) Expenditures$ 8,716 $ 21,713 $ 72,206 $ 488,824 $ 591,459 OTHER FINANCING SOURCES (USES) Disposition of Capital Assets $ - $ - $ - $ - $ - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Transfers-(In) - - - - - Transfers-(Out) - - - (847,186) (847,186) Total Other Financing Sources(Uses) $ - $ - $ - $ (847,186) $ (847,186) Net Change in Fund Balances $ 8,716 $ 21,713 $ 72,206 $ (358,362) $ (255,727) Prior Year Adjustments $ - $ - $ - $ 128,340 $ 128,340 Fund Balance Beginning $ 91,930 $ 208,294 $ 1,585,649 $ 1,272,411 $ 3,158,284 Fund Balance, Ending $ 100,646 $ 230,007 $ 1,657,855 $ 1,042,389 $ 3,030,897 See accompanying notes to the basic financial statements. 116 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 - 20,447 13,584 - 34,031 (29,380) (29,380) 15,842 2,522 56,125 5,312 79,801 - - 107,040 - 107,040 $ $ (29,380) $ (29,380) $ 36,289 $ 16,106 $ 163,165 $ 5,312 $ 220,872 1,494,797 310,264 1,805,061 - - - - $ 1,494,797 $ 310,264 $ 1,805,061 $ - $ - $ - $ - $ - $ (1,494,797) $ (339,644) $ (1,834,441) $ 36,289 $ 16,106 $ 163,165 $ 5,312 $ 220,872 1,494,797 1,274,261 2,769,058 - - - - - - (15,842) (2,522) (56,125) - (74,489) $ 1,494,797 $ 1,274,261 $ 2,769,058 $ (15,842) $ (2,522) $ (56,125) $ - $ (74,489) $ - $ 934,617 $ 934,617 $ 20,447 $ 13,584 $ 107,040 $ 5,312 $ 146,383 $ 92,835 $ (1,251,176) $ (1,158,341) $ 320,039 $ 50,071 $ 1,119,555 $ 12,657 $ 1,502,322 $ 92,835 $ (316,559) $ (223,724) $ 340,486 $ 63,655 $ 1,226,595 $ 17,969 $ 1,648,705 Continued on next page. 117 City of Pasco Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31, 2007 2007 2006 Total Other Total Other Governmental Governmental REVENUES Funds Funds Taxes $ 2,794,013 $ 2,911,557 Licenses&Permits 214,554 203,626 Intergovernmental Revenue 3,167,495 1,494,435 Charges for Services 1,826,540 1,498,842 Fines& Forfeitures 38,195 32,037 Investment Income 609,747 503,547 Miscellaneous Revenue 1,067,394 1,328,736 Total Revenues $ 9,717,938 $ 7,972,780 EXPENDITURES Current: General Government $ - $ - Judicial - - Public Safety 1,865,106 1,994,522 Physical Environment 251,003 188,159 Transportation 1,537,483 1,132,745 Health and Human Services 31,087 34,574 Economic Environment 362,525 312,545 Culture and Recreation 827,675 744,842 Capital Outlay 4,924,244 4,999,065 Debt Service Principal 645,095 635,345 Interest 244,345 269,646 Total Expenditures $ 10,688,563 $ 10,311,443 Excess of Revenues Over(Under) Expenditures $ (970,625) $ (2,338,663) OTHER FINANCING SOURCES (USES) Disposition of Capital Assets $ - $ - Proceeds of General L-T Debt - - Insurance Recoveries 2,710 109 Transfers-(In) 4,893,176 4,291,941 Transfers-(Out) (2,869,674) (2,136,114) Total Other Financing Sources(Uses) $ 2,026,212 $ 2,155,936 Net Change in Fund Balances $ 1,055,587 $ (182,727) Prior Year Adjustments $ 308,213 $ (216,881) Fund Balance Beginning $ 11,356,092 $ 11,778,673 Fund Balance, Ending $ 12,719,892 $ 11,379,065 See accompanying notes to the basic financial statements. 118 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL CITY STREET FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 178,000 $ 178,000 $ 184,291 $ 6,291 $ 6,291 Licenses&Permits 182,000 182,000 214,554 32,554 32,554 Intergovernmental Revenue 670,000 670,000 785,415 115,415 115,415 Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income 2,000 2,000 11,610 9,610 9,610 Miscellaneous Revenue 100 100 793 693 693 Total Revenues 1,032,100 1,032,100 1,196,663 164,563 164,563 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety Physical Environment - - - Transportation 1,204,470 1,204,470 1,481,142 (276,672) (276,672) Health and Human Services - - - Economic Environment Culture and Recreation - - - - - CapitalOutlay 200,000 200,000 200,000 200,000 Debt Service - - Principal - - Interest - - - Total Expenditures 1,404,470 1,404,470 1,481,142 (76,672) (76,672) Excess of Revenues Over(Under)Expenditures (372,370) (372,370) (284,479) 87,891 87,891 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - Proceeds of General L-T Debt - - - - - Insurance Recoveries 100 100 2,710 2,610 2,610 Transfers-In 300,000 300,000 300,000 - - Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 300,100 300,100 302,710 2,610 2,610 Net Change in Fund Balances (72,270) (72,270) 18,231 90,501 90,501 Prior Year Adjustments - - (8,627) (8,627) (8,627) Fund Balance Beginning 2,730 2,730 256,241 253,511 253,511 Fund Balance, Ending $ (69,540) $ (69,540) $ 265,845 $ 335,385 $ 335,385 See accompanying notes to the basic financial statements. 119 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL ARTERIAL STREET FUND FOR THE YEAR ENDED DECEMBER 31, 2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ - $ - $ - $ - $ - Licenses&Permits - - - - - Intergovernmental Revenue 3,893,800 3,893,800 496,461 (3,397,339) (3,397,339) Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income 1,000 1,000 8,316 7,316 7,316 Miscellaneous Revenue - - 15,894 15,894 15,894 Total Revenues 3,894,800 3,894,800 520,671 (3,374,129) (3,374,129) EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - - - - - Health and Human Services - - - - - Economic Environment - - - - - Culture and Recreation - - - - - CapitalOutlay 5,950,000 5,950,000 2,179,592 3,770,408 3,770,408 Debt Service - - Principal - - - -Interest - - - - - Total Expenditures 5,950,000 5,950,000 2,179,592 3,770,408 3,770,408 Excess of Revenues Over(Under) Expenditure(2,055,200) (2,055,200) (1,658,921) 396,279 396,279 OTHER FINANCING SOURCES (USES) Disposition of Capital Assets - - - - - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Transfers- In 1,513,000 1,513,000 837,030 (675,970) (675,970) Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 1,513,000 1,513,000 837,030 (675,970) (675,970) Net Change in Fund Balances (542,200) (542,200) (821,891) (279,691) (279,691) Prior Year Adjustments - - 30,113 30,113 30,113 Fund Balance Beginning 7,800 7,800 (22,973) (30,773) (30,773) Fund Balance, Ending $ (534,400) _L_L534,400) $ (814,751) $ (280,351) $ (280,351) See accompanying notes to the basic financial statements. 120 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL 1-182 CORRIDOR TRAFFIC IMPACT FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ - Licenses&Permits - Intergovernmental Revenue - - Charges for Services - Fines&Forfeitures - Investment Income 6,000 6,000 22,810 16,810 16,810 Miscellaneous Revenue 176,000 176,000 165,529 (10,471) (10,471) Total Revenues 182,000 182,000 188,339 6,339 6,339 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 182,000 182,000 188,339 6,339 6,339 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - - - Proceeds of General L-T Debt Insurance Recoveries - Transfers-In - - - Transfers-(Out) (250,000) (250,000) (37,030) 212,970 212,970 Total Other Financing Sources(Uses) (250,000) (250,000) (37,030) 212,970 212,970 Net Change in Fund Balances (68,000) (68,000) 151,309 219,309 219,309 Prior Year Adjustments - - - - - Fund Balance Beginning 132,000 132,000 440,128 308,128 308,128 Fund Balance,Ending $ 64,000 $ 64,000 $ 591,437 $ 527,437 $ 527,437 See accompanying notes to the basic financial statements. 121 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL STREET OVERLAY FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 699,000 $ 699,000 $ 738,507 $ 39,507 $ 39,507 Licenses&Permits - - - - - Intergovernmental Revenue 450,000 450,000 (450,000.0) (450,000.0) Charges for Services - - Fines&Forfeitures - - - - - Investment Income 48,000 48,000 63,381 15,381 15,381 Miscellaneous Revenue - - - - - Total Revenues 1,197,000 1,197,000 801,888 (395,112) (395,112) EXPENDITURES Current: General Government - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - Culture and Recreation - - - - - CapitalOutlay 600,000 600,000 525,235 74,765 74,765 Debt Service - - Principal - - - Interest - - - - - TotalExpenditures 600,000 600,000 525,235 74,765 74,765 Excess of Revenues Over(Under)Expenditures 597,000 597,000 276,653 (320,347) (320,347) OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - Proceeds of General L-T Debt Insurance Recoveries Transfers-In Transfers-(Out) (450,000) (450,000) (450,000) Total Other Financing Sources(Uses) (450,000) (450,000) (450,000) Net Change in Fund Balances 147,000 147,000 (173,347) (320,347) (320,347) Prior Year Adjustments - - - - - Fund Balance Beginning 897,000 897,000 1,435,706 538,706 538,706 Fund Balance, Ending $ 1,044,000 $ 1,044,000 $ 1,262,359 $ 218,359 $ 218,359 See accompanying notes to the basic financial statements. 122 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, 2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ - $ - $ - $ - $ - Licenses&Permits - - - - - Intergovernmental Revenue 800,000 800,000 605,284 (194,716) (194,716) Charges for Services - - 4,718 4,718 4,718 Fines& Forfeitures - - - - - Investment Income - - 933 933 933 Miscellaneous Revenue 59,500 59,500 3,468 (56,032) (56,032) Total Revenues 859,500 859,500 614,403 (245,097) (245,097) EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety 62,250 62,250 65,088 (2,838) (2,838) Physical Environment - - - - - Transportation - - - - - Health and Human Services - - - - - Economic Environment 127,900 127,900 85,167 42,733 42,733 Culture and Recreation - - - - - CapitalOutlay 368,750 368,750 371,225 (2,475) (2,475) Debt Service - - Principal - - - -Interest - - - - - Total Expenditures 558,900 558,900 521,480 37,420 37,420 Excess of Revenues Over(Under)Expenditures 300,600 300,600 92,923 (207,677) (207,677) OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - - - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Transfers- In - - - - - Transfers-(Out) (149,250) (149,250) (101,250) 48,000 48,000 Total Other Financing Sources(Uses) (149,250) (149,250) (101,250) 48,000 48,000 Net Change in Fund Balances 151,350 151,350 (8,327) (159,677) (159,677) Prior Year Adjustments - - - - - Fund Balance Beginning - - 139,397 139,397 139,397 Fund Balance, Ending $ 151,350 $ 151,350 $ 131,070 $ (20,280) $ (20,280) See accompanying notes to the basic financial statements. 123 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL MILK COMMUNITY CENTER FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue - ChargesforServices 2,000 2,000 4,180 2,180 2,180 Fines&Forfeitures - - - - - Investment Income 200 200 707 507 507 Miscellaneous Revenue 28,500 28,500 30,397 1,897 1,897 Total Revenues 30,700 30,700 35,284 4,584 4,584 EXPENDITURES Current: General Government - - - - - Judicial Public Safety Physical Environment Transportation Health and Human Services Economic Environment - - - - - Culture and Recreation 126,700 131,200 123,331 3,369 7,869 Capital Outlay - - - - - Debt Service Principal Interest - - - - - Total Expenditures 126,700 131,200 123,331 3,369 7,869 Excess of Revenues Over(Under)Expenditures (96,000) (100,500) (88,047) 7,953 12,453 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - Proceeds of General L-T Debt Insurance Recoveries - - - Transfers-In 95,000 95,000 95,000 Transfers-(Out) - - - Total Other Financing Sources(Uses) 95,000 95,000 95,000 - Net Change in Fund Balances (1,000) (5,500) 6,953 7,953 12,453 Prior Year Adjustments - - - - - Fund Balance Beginning 1,235 1,235 9,353 8,118 8,118 Fund Balance,Ending $ 235 $ (4,265) $ 16,306 $ 16,071 $ 20,571 See accompanying notes to the basic financial statements. 124 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL AMBULANCE FUND FOR THE YEAR ENDED DECEMBER 31, 2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ - $ - $ - $ - $ - Licenses&Permits - - - - - Intergovernmental Revenue 1,200 1,200 1,439 239 239 Charges for Services 1,427,000 1,317,000 1,287,100 (139,900) (29,900) Fines&Forfeitures - - - - - Investment Income - - (5,817) (5,817) (5,817) Miscellaneous Revenue 10,000 10,000 17,764 7,764 7,764 Total Revenues 1,438,200 1,328,200 1,300,486 (137,714) (27,714) EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety 1,823,085 1,823,085 1,800,018 23,067 23,067 Physical Environment - - - - - Transportation - - - - - Health and Human Services - - - - - Economic Environment - - - - - Culture and Recreation - - - - - CapitalOutlay 29,175 29,175 29,131 44 44 Debt Service - - Principal - - - -Interest - - - - Total Expenditures 1,852,260 1,852,260 11829,149 23,111 23,111 Excess of Revenues Over(Under) Expenditure�414,060) (524,060) (528,663) (114,603) (4,603) OTHER FINANCING SOURCES (USES) Disposition of Capital Assets - - - - - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Transfers- In 420,000 420,000 420,475 475 475 Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 420,000 420,000 420,475 475 475 Net Change in Fund Balances 5,940 (104,060) (108,188) (114,128) (4,128) Prior Year Adjustments - - 1,301 1,301 1,301 Fund Balance Beginning 5,940 5,940 268,001 262,061 262,061 Fund Balance, Ending $ 11,880 $ (98,120) $ 161,114 $ 149,234 $ 259,234 See accompanying notes to the basic financial statements. 125 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL CONTINGENCY FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue Charges for Services - Fines&Forfeitures - Investment Income 6,000 6,000 7,142 1,142 1,142 Miscellaneous Revenue - - - - - Total Revenues 6,000 6,000 7,142 1,142 1,142 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 6,000 6,000 7,142 1,142 1,142 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - - - Proceeds of General L-T Debt Insurance Recoveries Transfers-In Transfers-(Out) - Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 6,000 6,000 7,142 1,142 1,142 Prior Year Adjustments - - - - - Fund Balance Beginning 128,000 128,000 151,469 23,469 23,469 Fund Balance, Ending $ 134,000 $ 134,000 $ 158,611 $ 24,611 $ 24,611 See accompanying notes to the basic financial statements. 126 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL CEMETERY FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue - Charges for Services 185,000 185,000 222,876 37,876 37,876 Fines&Forfeitures - - - - - Investment Income 1,400 1,400 4,726 3,326 3,326 Miscellaneous Revenue 1,300 1,300 2,406 1,106 1,106 Total Revenues 187,700 187,700 230,008 42,308 42,308 EXPENDITURES Current: General Government - - - - - Judicial Public Safety - - - Physical Environment 218,371 218,371 232,915 (14,544) (14,544) 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 9,168 (2,168) (2,168) Total Expenditures 255,371 255,371 242,083 13,288 13,288 Excess of Revenues Over(Under)Expenditures (67,671) (67,671) (12,075) 55,596 55,596 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - Proceeds of General L-T Debt Insurance Recoveries - - - - - Transfers-In 56,000 56,000 63,363 7,363 7,363 Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 56,000 56,000 63,363 7,363 7,363 Net Change in Fund Balances (11,671) (11,671) 51,288 62,959 62,959 Prior Year Adjustments - - 2,691 2,691 2,691 Fund Balance Beginning 3,329 3,329 (129,207) (132,536) (132,536) Fund Balance,Ending $ (8,342) $ (8,342) $ (75,228) $ (66,886) $ (66,886) See accompanying notes to the basic financial statements. 127 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL ATHLETIC FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue Charges for Services 86,100 86,100 79,824 (6,276) (6,276) Fines&Forfeitures - - - - - Investment Income 1,000 1,000 2,303 1,303 1,303 Miscellaneous Revenue - - 548 548 548 Total Revenues 87,100 87,100 82,675 (4,425) (4,425) EXPENDITURES Current: General Government - - - Judicial Public Safety Physical Environment Transportation Health and Human Services Economic Environment - - - - - Culture and Recreation 95,500 95,500 74,467 21,033 21,033 Capital Outlay - - - Debt Service Principal Interest - - TotalExpenditures 95,500 95,500 74,467 21,033 21,033 Excess of Revenues Over(Under)Expenditures (8,400) (8,400) 8,208 16,608 16,608 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - Proceeds of General L-T Debt Insurance Recoveries Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - - - Net Change in Fund Balances (8,400) (8,400) 8,208 16,608 16,608 Prior Year Adjustments - - (30) (30) (30) Fund Balance Beginning 51,600 51,600 53,802 2,202 2,202 Fund Balance,Ending $ 43,200 $ 43,200 $ 61,980 $ 18,780 $ 18,780 See accompanying notes to the basic financial statements. 128 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL SENIOR CENTER FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue 25,000 25,000 19,509 (5,491) (5,491) Charges for Services - - - Fines&Forfeitures - - - - - Investment Income 100 100 (87) (187) (187) Miscellaneous Revenue 52,400 52,400 60,841 8,441 8,441 Total Revenues 77,500 77,500 80,263 2,763 2,763 EXPENDITURES Current: General Government - - - - - Judicial Public Safety Physical Environment Transportation - - - - - Health and Human Services 30,975 36,975 31,087 (112) 5,888 Economic Environment - - - - - Culture and Recreation 194,032 225,032 219,435 (25,403) 5,597 Capital Outlay - - - - Debt Service Principal Interest - - - - Total Expenditures 225,007 262,007 250,522 (25,515) 11,485 Excess of Revenues Over(Under)Expenditures (147,507) (184,507) (170,259) (22,752) 14,248 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - Proceeds of General L-T Debt Insurance Recoveries - - - - Transfers-In 151,250 188,250 188,250 37,000 Transfers-(Out) - - - - Total Other Financing Sources(Uses) 151,250 188,250 188,250 37,000 - Net Change in Fund Balances 3,743 3,743 17,991 14,248 14,248 Prior Year Adjustments - - 625 625 625 Fund Balance Beginning 3,743 3,743 3,910 167 167 Fund Balance,Ending $ 7,486 $ 7,486 $ 22,526 $ 15,040 $ 15,040 See accompanying notes to the basic financial statements. 129 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL MULTI-MODEL FACILITY FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue Charges for Services Fines&Forfeitures - Investment Income 100 100 534 434 434 Miscellaneous Revenue 44,000 52,000 56,785 12,785 4,785 Total Revenues 44,100 52,100 57,319 13,219 5,219 EXPENDITURES Current: General Government - - - - - Judicial Public Safety Physical Environment - - - - Transportation 48,515 56,515 56,341 (7,826) 174 Health and Human Services - - - - Economic Environment Culture and Recreation Capital Outlay Debt Service Principal Interest - - - - Total Expenditures 48,515 56,515 56,341 (7,826) 174 Excess of Revenues Over(Under)Expenditures (4,415) (4,415) 978 5,393 5,393 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - Proceeds of General L-T Debt Insurance Recoveries Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - - - Net Change in Fund Balances (4,415) (4,415) 978 5,393 5,393 Prior Year Adjustments - - 3,865 3,865 3,865 Fund Balance Beginning 585 585 1,342 757 757 Fund Balance,Ending $ (3,830) $ (3,830) $ 6,185 $ 10,015 $ 10,015 See accompanying notes to the basic financial statements. 130 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL BI-CENTENIAL FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue Charges for Services Fines&Forfeitures Investment Income 200 200 259 59 59 Miscellaneous Revenue - - - Total Revenues 200 200 259 59 59 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 200 200 259 59 59 OTHER FINANCING SOURCES(USES) Disposition of Captial Assets - - - Proceeds of General L-T Debt Insurance Recoveries Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - - Net Change in Fund Balances 200 200 259 59 59 Prior Year Adjustments - - - - - Fund Balance Beginning 5,500 5,500 5,490 (10) (10) Fund Balance,Ending $ 5,700 $ 5,700 $ 5,749 $ 49 $ 49 See accompanying notes to the basic financial statements. 131 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 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue - Charges for Services Fines&Forfeitures - Investment Income 800 800 528 (272) (272) Miscellaneous Revenue 10,000 10,000 10,650 650 650 Total Revenues 10,800 10,800 11,178 378 378 EXPENDITURES Current: General Government - - - - - Judicial Public Safety Physical Environment - Transportation - Health and Human Services - Economic Environment - - - - - Culture and Recreation 31,800 31,800 19,018 12,782 12,782 Capital Outlay - - - - - Debt Service Principal Interest - - - - - TotalExpenditures 31,800 31,800 19,018 12,782 12,782 Excess of Revenues Over(Under)Expenditures (21,000) (21,000) (7,840) 13,160 13,160 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - Proceeds of General L-T Debt Insurance Recoveries Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - Net Change in Fund Balances (21,000) (21,000) (7,840) 13,160 13,160 Prior Year Adjustments - - - - - Fund Balance Beginning 17,050 17,050 19,842 2,792 2,792 Fund Balance, Ending $ (3,950) $ (3,950) $ 12,002 $ 15,952 $ 15,952 See accompanying notes to the basic financial statements. 132 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL SPECIAL ASSESSMENT LODGING FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 180,000 $ 195,000 $ 192,933 $ 12,933 $ (2,067) Licenses&Permits - - - - - Intergovernmental Revenue Charges for Services Fines&Forfeitures - - - Investment Income 582 582 582 Miscellaneous Revenue - - - - - Total Revenues 180,000 195,000 193,515 13,515 (1,485) EXPENDITURES Current: General Government - - - - Judicial Public Safety Physical Environment Transportation Health and Human Services - - - - - Economic Environment 180,000 195,000 169,562 10,438 25,438 Culture and Recreation - - - - - Capital Outlay - Debt Service Principal - Interest - - - - - Total Expenditures 180,000 195,000 169,562 10,438 25,438 Excess of Revenues Over(Under)Expenditures - - 23,953 23,953 23,953 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - - Proceeds of General L-T Debt - Insurance Recoveries - Transfers-In - Transfers-(Out) - Total Other Financing Sources(Uses) - - - - Net Change in Fund Balances - 23,953 23,953 23,953 Prior Year Adjustments - - - - - Fund Balance Beginning 100 100 734 634 634 Fund Balance,Ending $ 100 $ 100 $ 24,687 $ 24,587 $ 24,587 See accompanying notes to the basic financial statements. 133 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL LITTER ABATEMENT FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue - Charges for Services 7,000 7,000 3,750 (3,250) (3,250) Fines&Forfeitures - - - - - Investment Income 100 100 (93) (193) (193) Miscellaneous Revenue 10,000 10,000 5,938 (4,062) (4,062) Total Revenues 17,100 17,100 9,595 (7,505) (7,505) EXPENDITURES Current: General Government - - - Judicial Public Safety - Physical Environment - - 18,075 (18,075) (18,075) Transportation 14,100 29,100 - 14,100 29,100 Health and Human Services - - - - Economic Environment Culture and Recreation - Capital Outlay - Debt Service Principal - Interest - - - - Total Expenditures 14,100 29,100 18,075 (3,975) 11,025 Excess of Revenues Over(Under)Expenditures 3,000 (12,000) (8,480) (11,480) 3,520 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - Proceeds of General L-T Debt Insurance Recoveries - - - Transfers-In 15,000 15,000 15,000 Transfers-(Out) - - - Total Other Financing Sources(Uses) - 15,000 15,000 15,000 Net Change in Fund Balances 3,000 3,000 6,520 3,520 3,520 Prior Year Adjustments - - - - - Fund Balance Beginning 7,000 7,000 4,268 (2,732) (2,732) Fund Balance, Ending $ 10,000 $ 10,000 $ 10,788 $ 788 $ 788 See accompanying notes to the basic financial statements. 134 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL REVOLVING ABATEMENT FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue Charges for Services 5,000 5,000 (20,305) (25,305) (25,305) Fines&Forfeitures 40,000 40,000 38,195 (1,805) (1,805) Investment Income 6,000 6,000 13,153 7,153 7,153 Miscellaneous Revenue 12,000 12,000 39,433 27,433 27,433 Total Revenues 63,000 63,000 70,476 7,476 7,476 EXPENDITURES Current: General Government - - - - - Judicial Public Safety Physical Environment Transportation Health and Human Services - - - Economic Environment 75,200 75,200 107,796 (32,596) (32,596) Culture and Recreation - - - Capital Outlay Debt Service Principal Interest - - - TotalExpenditures 75,200 75,200 107,796 (32,596) (32,596) Excess of Revenues Over(Under)Expenditures (12,200) (12,200) (37,320) (25,120) (25,120) OTHER FINANCING SOURCES(USES) Disposition of Capital Assets Proceeds of General L-T Debt Insurance Recoveries Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - Net Change in Fund Balances (12,200) (12,200) (37,320) (25,120) (25,120) Prior Year Adjustments - - - - - Fund Balance Beginning 187,800 187,800 267,346 79,546 79,546 Fund Balance,Ending $ 175,600 $ 175,600 $ 230,026 $ 54,426 $ 54,426 See accompanying notes to the basic financial statements. 135 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL TRAC DEVELOPMENT&OPERATING FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 180,000 $ 180,000 $ 208,296 $ 28,296 $ 28,296 Licenses&Permits - - - - - Intergovernmental Revenue Charges for Services Fines&Forfeitures - - Investment Income 1,000 1,000 (1,432) (2,432) (2,432) Miscellaneous Revenue - - - - - Total Revenues 181,000 181,000 206,864 25,864 25,864 EXPENDITURES Current: General Government - - - - - Judicial Public Safety Physical Environment Transportation Health and Human Services Economic Environment - - - Culture and Recreation 135,000 285,000 286,466 (151,466) (1,466) Capital Outlay - - - Debt Service Principal 70,350 70,350 70,345 5 5 Interest 31,625 31,625 31,602 23 23 Total Expenditures 236,975 386,975 388,413 (151,438) (1,438) Excess of Revenues Over(Under)Expenditures (55,975) (205,975) (181,549) (125,574) 24,426 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - Proceeds of General L-T Debt Insurance Recoveries - - - - Transfers-In 55,000 205,000 205,000 150,000 Transfers-(Out) - - - - Total Other Financing Sources(Uses) 55,000 205,000 205,000 150,000 - Net Change in Fund Balances (975) (975) 23,451 24,426 24,426 Prior Year Adjustments - - - - - Fund Balance Beginning 4,025 4,025 33,336 29,311 29,311 Fund Balance,Ending $ 3,050 $ 3,050 $ 56,787 $ 53,737 $ 53,737 See accompanying notes to the basic financial statements. 136 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL PARK DEVELOPMENT FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits Intergovernmental Revenue - ChargesforServices 245,100 245,100 210,366 (34,734) (34,734) Fines&Forfeitures - - - - - Investment Income 70,000 70,000 78,739 8,739 8,739 Miscellaneous Revenue - - - - - Total Revenues 315,100 315,100 289,105 (25,995) (25,995) 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 315,100 315,100 289,105 (25,995) (25,995) OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - Proceeds of General L-T Debt Insurance Recoveries Transfers-In Transfers-(Out) (54,988) (54,988) (54,988) Total Other Financing Sources(Uses) - - (54,988) (54,988) (54,988) Net Change in Fund Balances 315,100 315,100 234,117 (80,983) (80,983) Prior Year Adjustments - - - Fund Balance Beginning 2,215,100 2,215,100 1,445,671 (769,429) (769,429) Fund Balance, Ending $ 2,530,200 $ 2,530,200 $ 1,679,788 $ (850,412) $ (850,412) See accompanying notes to the basic financial statements. 137 CITY OF PASCO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL CAPITAL IMPROVEMENT FUND FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 550,000 $ 550,000 $ 702,371 $ 152,371 $ 152,371 Licenses&Permits - - - - - Intergovernmental Revenue Charges for Services Fines&Forfeitures - - - - - Investment Income 75,000 75,000 158,613 83,613 83,613 Miscellaneous Revenue - - - - - Total Revenues 625,000 625,000 860,984 235,984 235,984 EXPENDITURES Current: General Government - - - - - Judicial Public Safety Physical Environment Transportation Health and Human Services Economic Environment Culture and Recreation - - - - - Capital Outlay 525,000 525,000 14,000 511,000 511,000 Debt Service - - Principal - - - Interest - - - - - TotalExpenditures 525,000 525,000 14,000 511,000 511,000 Excess of Revenues Over(Under)Expenditures 100,000 100,000 846,984 746,984 746,984 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - - - Proceeds of General L-T Debt Insurance Recoveries Transfers-In Transfers-(Out) (46,794) (46,794) (46,794) Total Other Financing Sources(Uses) - - (46,794) (46,794) (46,794) Net Change in Fund Balances 100,000 100,000 800,190 700,190 700,190 Prior Year Adjustments - - (60,220) (60,220) (60,220) Fund Balance Beginning 2,100,000 2,100,000 3,096,217 996,217 996,217 Fund Balance,Ending $ 2,200,000 $ 2,200,000 $ 3,836,187 $ 1,636,187 $ 1,636,187 See accompanying notes to the basic financial statements. 138 CITY OF PASCO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL INDUSTRIAL DEVELOPMENT AND INFRASTRUCTURE FOR THE YEAR ENDED DECEMBER 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - Charges for Services - Fines&Forfeitures - - Investment Income 20,000 20,000 25,921 5,921 5,921 Miscellaneous Revenue - - - - - Total Revenues 20,000 20,000 25,921 5,921 5,921 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - Culture and Recreation - - - - - CapitalOutlay 500,000 500,000 500,000 500,000 Debt Service - - Principal - - Interest - - - - TotalExpenditures 500,000 500,000 - 500,000 500,000 Excess of Revenues Over(Under)Expenditures (480,000) (480,000) 25,921 505,921 505,921 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets - - - Proceeds of General L-T Debt Insurance Recoveries - - Transfers-In Transfers-(Out) - - Total Other Financing Sources(Uses) - - - Net Change in Fund Balances (480,000) (480,000) 25,921 505,921 505,921 Prior Year Adjustments - - 151,386 151,386 151,386 Fund Balance Beginning 245,000 245,000 397,681 152,681 152,681 Fund Balance, Ending $ (235,000) $ (235,000) $ 574,988 $ 809,988 $ 809,988 See accompanying notes to the basic financial statements. 139 BUDGET TO ACTUAL STADIUM/CONVENTION CENTER FUND FOR THE YEAR ENDED DECEMBER 31, 2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 180,000 $ 180,000 $ 208,311 $ 28,311 $ 28,311 Licenses&Permits - - - - - Intergovernmental Revenue - - 1,259,387 1,259,387.00 1,259,387.00 Charges for Services - - - - - Fines& Forfeitures - - - - - Investment Income 200 200 7,303 7,103 7,103 Miscellaneous Revenue 18,200 18,200 26,585 8,385 8,385 Total Revenues 198,400 198,400 1,501,586 1,303,186 1,303,186 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - - - - - Health and Human Services - - - - - Economic Environment - - - - - Culture and Recreation 104,550 104,550 104,958 (408) (408) Capital Outlay 1,000,000 1,341,000 - 1,000,000 1,341,000 Debt Service - - Principal 95,000 95,000 95,000 - - Interest 33,275 33,275 32,975 300 300 Total Expenditures 1,232,825 1,573,825 232,933 999,892 1,340,892 Excess of Revenues Over(Under) ExpenditurW,034,425) (1,375,425) 1,268,653 2,303,078 2,644,078 OTHER FINANCING SOURCES (USES) Disposition of Capital Assets - - - - - Proceeds of General L-T Debt - - - - - Insurance Recoveries - - - - - Transfers- In 40,000 40,000 - (40,000) (40,000) Transfers-(Out) - - (1,257,937) (1,257,937) (1,257,937) Total Other Financing Sources(Uses) 40,000 40,000 (1,257,937) (1,297,937) (1,297,937) Net Change in Fund Balances (994,425) (1,335,425) 10,716 1,005,141 1,346,141 Prior Year Adjustments - - 62,634 62,634 62,634 Fund Balance Beginning 10,575 10,575 (22,490) (33,065) (33,065) Fund Balance, Ending $ (983,850) $ (1,324,850) $ 50,860 $ 1,034,710 $ 1,375,710 See accompanying notes to the basic financial statements. 140 Otyd P�sco Ombring Staterert d Net Assets Irternal Services Axid F brtheYear Ended DBosnber 31,2707 Goematal Activities Intend Sermce Rncls Ecppret Pe'd EcF.iprert Festal Arinsl Cefial Nbdd Ira 2007 2006 CpaAcns Fflaoarrat Cat-d Stoles Find Total Total ASS7=T5 CLret A�ets: ClrretC sh&( shE�iv�lerts $ 17G4M $ 2362553 $ 5,277 $ 15929 $ 321,300 $ 2881,554 $ 1,664,990 Fdeoeiwbes(net of ellom mes) Irterbt Mans ReoeivaYde - 17Q000 - - 170,000 18Q00D N3-derdseIraertory - - - 9,355 - 9,355 7,706 Interest Fboeivde 360 12,742 (44) 33 1,341 14,432 7,568 Dig from Gmmsld Uits 492 31,575 32,067 - Tot alCLTetAssets $ 177,347 $ 2,545,295 $ 36,808 $ 25317 $ 322,641 $ 3,107,406 $ 1,860,264 N C rtat Assets Pesbided Assets $ - $ - $ - $ - $ $ - $ - Fixed Assets,Net of DTredaticn RILiPTEnt - 2201,345 45,331 - 2,246,676 2231,578 TOTAL-ASSETS $ 177,347 $ 4,746,640 $ 82139 $ 25317 $ 371,641 $ 5,354,084 $ 4,091,842 UABUTIES Orrret tial ilites Aecarts Ra We $ 3Q392 $ 1,731 $ 44,703 $ 2038 $ 50 $ 78,914 $ 22851 Total Oxret Liabilities $ 3Q392 $ 1,731 $ 44,703 $ 2038 $ 50 $ 78,914 $ 22851 NxKbTent Liablities Canpa-saedAbse ces $ 16,791 $ - $ - $ $ $ 16,791 $ 16,096 Irtefuid Loam Payade - - - 85000 Clams Inarred NA Pepated - - - 125000 125000 125000 Total Lia"dlities $ 47,183 $ 1,731 $ 44,703 $ 2038 $ 125050 $ 22,705 $ 248,937 NEf AS= Invesirrat in Capital Assets,Net d Fbated Lit $ - $ 2201,345 $ 45,331 $ - $ - $ 2246,676 $ 2239,234 R3strided for D3USeriee - 170,000 - - - 170,000 180,000 Uresirided 130,164 2373,564 (7,895) 23,279 197,591 2716,703 1,423,621 Tdal Net Assets $ 13Q164 $ 4,744,909 $ 37,436 $ 23,279 $ 197,591 $ 5133,379 $ 3,842905 See aom arryingrutestothetacfinandal stAwe ts. 141 City of Pasco Combining Statement of Net Assets Internal Services Fund For the Year Ended December 31,2007 Business Type Activities Internal Service Funds Equipment Rental Equipment Rental 2007 2006 Operations Replacement Total Total ASSETS Current Assets: Current Cash&Cash Equivalents $ (1,026) $ 1,118,429 $ 1,117,403 $ 1,350,796 Receivables(net of allowances) Interfund Loans Receivable - - - 41,158 Merchandise Inventory - - - - Interest Receivable 459 6,124 6,583 6,801 Due from Governmental Units - - - - Total Current Assets $ (567) $ 1,124,553 $ 1,123,986 $ 1,398,755 Non-Current Assets: Restricted Assets $ - $ - $ - $ - Fixed Assets, Net of Depreciation Equipment - 987,091 987,091 862,687 TOTAL ASSETS $ (567) $ 2,111,644 $ 2,111,077 $ 2,261,442 LIABILITIES Current Liabilities: Accounts Payable $ 2,405 $ - $ 2,405 $ 2,252 Total Current Liabilities $ 2,405 $ - $ 2,405 $ 2,252 Non-Current Liabilities Compensated Absences $ 7,884 $ - $ 7,884 $ 7,884 Interfund Loans Payable - - - 71,158 Claims Incurred Not Reported - - - - Total Liabilities $ 10,289 $ - $ 10,289 $ 81,294 NET ASSETS Investment in Capital Assets, Net of Related Debt $ - $ 987,091 $ 987,091 $ 862,687 Restricted for Debt Service - - - 41,158 Unrestricted (10,856) 1,124,553 1,113,697 1,276,303 Total Net Assets $ (10,856) $ 2,111,644 $ 2,100,788 $ 2,180,148 See accompanying notes to the basic financial statements. 142 Otycf Pasco O,Pbnrg4Aeretcf Bpffif rEr�azdOu-g3sinRrdNAABAs Irterd SErmaEsRrd FafitYc-e-52WIlmiia 31,2D7 G3Hn etd AcMEs Irteral SmeRr&� EcpMul Fb-d Ec iMet Fb-d Prim CTfid Nkdcd Irs 2707 2706 (was FtIzlwaml Oltd 3aE,s R-rd Tdd Tdd CFERM1INGFEMM CtWfcr-cbNoss-Irbrd $ 7M72 $ 5754543 $ 13g6OO $ 25757 $ 255$170 $ 4,012717 $ �14RZ2 (ItrgEsfaSmiae;-Cllr 11,012 41,901) 340 - 227,25) 5��872 241,742 Tctd C9TArgRmn.a; $ 797,774 $ 547,,35B $ 44QO $ 4757 $ 2 433 $ 4,509 $ Q'OQ9O4 CFB:;A MGE>FB�ES gmAnj uses $ 108213 $ - $ 43�5 6 $ 34;830 $ 27,337 $ 59Q979 $ 17'a211 NbrtffaMBPaBEs 630 - - - - eff2 55600 Imra-ne0@in7sa-dBpen - - - - 2485648 248)648 2368390 4pualicn - 3 430 11,033 - - 34132 17,219 (pd Ways Q982 271,179 1QO82 - - 23Q243 188123 Tctd Q3aargBpaKs $ 75,777 $ T7,618 $ 49Q351 $ 34;830 $ 2514,058 $ 4,288584 $ X331,513 G FAMGIN32E(LC $ 44,997 $ 1Q74O $ (1QOP $ (Q073) $ 271,431 $ 311,005 $ 98451 N MYB:;A1NG-MkN-EB(DFENSB� Irvedrret Irarre $ 2EE2 $ 9Q33O $ (715) $ (43) $ 93O2 $ 10516 $ 6$153 Tdd f\dK4)Er irgRan-ES(EVsBs) $ 265 $ 9Q32) $ (715) $ (43) $ QU $ 10516 $ X153 Irrcrm4r,$)bdae(br6iblasaxl Tiaras $ 47,649 $ 11$060 $ (1Q $ Q1167 $ 2EQ733 $ 42Q5?1 $ 121;604 C C TMb-bas $ - $ 295906 $ 57,241 $ - $ - $ 351147 $ - Tra-dasIn(Clt) 8$8M - - 2 000 - 10g83O (4QW (la-gEsin%Asds $ 1 518 $ 41Q993 $ 37,436 $ 1 884 $ 2EQ733 $ 8EP5SV $ 8g7b7 RiaYEffM tm-b $ - $ 28675 $ - $ 1,648 $ (384) $ 299 $ (308811) Ads Rxdroeed in Cllr R nt - 38?998 - - - 3EP,99B 181,598 I UASEM-B33MN:; $ (Q354) $ ��24,00 $ - $ 7,747 $ (T2,75� $ Q8429O5 $ Q881,38O NEFASMTS-H\CII\G $ 130164 $ 4,744,900 $ 37,436 $ 2gM $ 197,-'R $ $138379 $ 3,842906 SeamTpayrgnJEstotlebmcfir nddAAereis 143 City of Pasco Combining Statement of Revenues,Expenditures,and Changes in Fund Net Assets Internal Services Fund For the Year Ended December 31,2007 Business-type Activities Internal Service Funds Equipment Rental Equipment Rental 2007 2006 Operations Replacement Total Total OPERATING REVENUES Charges for Services-Internal $ 320,880 $ 154,080 $ 474,960 $ 451,560 Charges for Servios-Other 14,950 - 14,950 3,175 Total Operating Revenues $ 335,830 $ 154,080 $ 439,910 $ 454,735 OPERATING EXPENSES Operating Expenses $ 18,600 $ - $ 18,600 $ 19,900 Maintenance Expenses 159,803 - 159,803 161,942 Insurance Claims and Expenses - - - - Depreciation - 69,375 69,375 264,018 Capital Outlays - 79,431 79,431 165,537 Total Operating Expenses $ 178,403 $ 148,806 $ 327,209 $ 611,397 OPERATING INCOME(LOSS) $ 157,427 $ 5,274 $ 162,701 $ (156,662) NON-OPERA TNG REVENUES(EXPENSES) Investment Income $ 1,880 $ 57,821 $ 59,701 $ 50,969 Total Nor�-Operating Revenues(Expenses) $ 1,880 $ 57,821 $ 59,701 $ 50,969 Income(Loss)before Contributions and Transfers $ 159,307 $ 63,095 $ 222,402 $ (105,693) Capital Contributions $ - $ 295,906 $ 295,906 $ - Transfers In(Out) (88,869) - (88,869) (59,263) Changes in Net Assets $ 70,438 $ 359,001 $ 429,439 $ (164,956) Prior Year Adjustments $ (702,579) $ (702,579) $ 163,331 Assets Purchased in Other Funds - 193,780 193,780 28,919 NET ASSETS-BEGI NNI NG $ (81,294) $ 2,261,442 $ 2,180,148 $ 2,152,854 NET ASSETS-ENDING $ (10,856) $ 2,111,644 $ 2,100,788 $ 2,180,148 See accompanying notes to the basic financial statements. 144 CIty of Pasco Combining Statement of Cash Rows Internal Services Fund For the Year Ended December 31,2007 Govemmental Activities Intemal Service Funds Equipment Rental Equipment Rental Animal Central Medical Ins. Operations Replacement CD*0I Stores Fund Total CASH FLOW FROM OPERATING ACTMTIES: Cash Received from Customers $ 796,921 $ 542,029 $ 408,730 $ 28,723 $ 2,784,253 $ 4,560,656 Payments for Maintenance&Ops. (742,469) (201,179) (402,955) (32,924) (27,360) (1,406,887) Payments to Er ployees - - - (2,486,796) (2,486,796) Net Cash provided by operating activities $ 54,452 $ 340,850 $ 5,775 $ (4,201) $ 270,097 $ 666,973 CASH FLOVVS FROM NCWCAPITAL $ - FINANCINGACTIVITIES Prior Year Adjustments $ - $ 23,675 $ - $ - $ (384) $ 23,291 Transfers In(Out) 88,869 - 217 20,000 - 109,086 $ 88,869 $ 9675 $ 217 $ 20,000 $ (384) $ 132,377 CASH FLOW FROM CAPITAL AND RELATED FINANCINGACT RATIES: Acquisition of Capital Assets $ - $ 382,698 $ - $ - $ - $ 382,698 CASH FLOVVS FROM INVESTING ACTIVITIES: Investment Activities Income $ 2,652 $ 98,320 $ (715) $ (43) $ 9,302 $ 109,516 Interfund Loans (85,000) 10,000 Net Cash Prodded from Investing Activities $ (82,348) $ 108,320 $ (715) $ (43) $ 9,302 $ 109,516 Net Increase(Decease)in Cash and Cash Equivalents $ 60,973 $ 855,543 $ 5,277 $ 15,756 $ 279,015 $ 1,291,564 Cash and Cash Equivalents January 1 $ 115,522 $ 1,507,010 $ - $ 173 $ 42,285 $ 1,664,990 Cash and Cash Equivalents December 31 $ 176,495 $ 2,362,553 $ 5,277 $ 15,929 $ 321,300 $ 2,881,554 CASH PROVIDED BY OPERATING ACTIVATES: Net Operating Inoome $ 44,997 $ 19,740 $ (19,090) $ (6,073) $ 271,431 $ 311,005 ADJUSTMENTS TO RECONCILE OPERATING I NOOIVE TO NET CASH PROM DIED BY OPERATING ACTIVITIES Depreciation $ - $ 326,439 $ 11,693 $ - $ - $ 338,132 (InceaseyDec-easein Customer Receivables (853) (5,329) (31,531) (34) (1,186) (38,933) Increasel(Decrease)in Accounts Payable 9,603 44,703 1,906 (148) 56,064 Increaset(Decrease)in Compensated Absences 705 - - - - 705 Net Cash Provide by Operating Activities $ 54,452 $ 340,850 $ 5,775 $ (4,201) $ 270,097 $ 666,973 See accuTWnying notes to the basic financial statements. 145 City of Pasco Combining Statement of Cash Flows Internal Services Fund For the Year Ended December 31,2007 Business-type Activities Internal Service Funds Equipment Rental Equipment Rental Operations Replacement Total CASH FLOW FROM OPERATING ACTIVITIES: Cash Received from Customers $ 335,371 $ 154,758 $ 490,129 Payments for Maintenance&Ops. (178,250) (79,431) (257,681) Payments to Employees - - - Net Cash provided by operating activities $ 157,121 $ 75,327 $ 232,448 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Prior Year Adjustments $ - $ (702,579) $ (702,579) Transfers In(Out)* (88,869) - (88,869) $ (88,869) $ (702,579) $ (791,448) CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Capital Assets $ - $ 295,906 $ 295,906 CASH FLOWS FROM INVESTING ACTIVITIES: Investment Activities Income $ 1,880 $ 57,821 $ 59,701 Interfund Loans (71,158) 41,158 Net Cash Provided from Investing Activities $ (69,278) $ 98,979 $ 59,701 Net Increase(Decrease)in Cash and Cash Equivalents $ (1,026) $ (232,367) $ (203,393) Cash and Cash Equivalents January 1 $ $ 1,350,796 $ 1,350,796 Cash and Cash Equivalents December 31 $ (1,026) $ 1,118,429 $ 1,117,403 *Reflects activities on interfund loans CASH PROVIDED BY OPERATING ACTIVITIES: Net Operating Income $ 157,427 $ 5,274 $ 162,701 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation $ - $ 69,375 $ 69,375 (Increase)/Decrease in Customer Receivables (459) 678 219 Increase/(Decrease)in Accounts Payable 153 - 153 Increase/(Decrease)in Compensated Absences - - - Net Cash Provide by Operating Activities $ 157,121 $ 75,327 $ 232,448 See accompanying notes to the basic financial statements. 146 City of Pasco Sched.le of Operations-Budget to Ah.els Ecpprml Fertal Ope~atior s C kal For the Yea-Ended -tier 31,2007 Qigrei Final Varianceto Variarceto Budget Budget P" Clignal Budget Final Budget OFERAII NG RE\ENLES Charges for SmAoes-Irternal $ 779,640 $ 779,640 $ 786,732 $ 7,092 $ 7,092 Charges for Savioes-0:1-a 12,000 12,000 11,042 (958) (958) Tod Operating%eues $ 791,640 $ 791,640 $ 797,774 $ 6,134 $ 6,134 OFERAII NG DFENSES Operating ExIm-tises $ 90,350 $ 90,350 $ 103,213 $ (12,863) $ (12,863) IVlairtena m Ems; 633,215 633,215 639,582 (6,367) (6,367) Irs-anoe Claims and E - - - - - Depredatim - - - - - Capital CUtiays 10,500 10,500 9,982 518 518 Total Operating Expa-ses $ 734,065 $ 734,065 $ 752,777 $ (18,712) $ (18,712) a-B Iw ,INM E(LOSS) $ 57,575 $ 57,575 $ 44,997 $ (12,578) $ (12,578) NCN C 2A11 NG DIES(DPBVS ) In estrrent Ire ne $ 1,000 $ 1,000 $ 2,652 $ 1,652 $ 1,652 Total Nm-Cperating Fees(Bpa-rses) $ 1,000 $ 1,000 $ 2,652 $ 1,652 $ 1,652 Inane(Loss)before Cortributicns and Transfers $ 58,575 $ 58,575 $ 47,649 $ (10,926) $ (10,926) Capital Ca-tributions $ - $ - $ - $ - $Tra-ders In(at) - - 88,869 88,869 8$869 Changes in Net Assets $ 58,575 $ 58,575 $ 136,518 $ 77,943 $ 77,943 Fria-Year q ush-e is $ - $ - $ - $ - $ - NETASSEfS-BEGII41% $ 58,757 $ 58,757 $ (6,354) $ (65,111) $ (65,111) I\ETASSETS-B\D% $ 117,332 $ 117,332 $ 130,164 $ 12,832 $ 12832 Seeacconpar rgnotestothebasicfinamalstatements. 147 City of Pasco Schedule of Operations-Budget to Actuals Equipment Rental Replacement Fund Governmental For the Year Ended December 31,2007 Original Final Varianceto Varianceto Budget Budget Actual Original Budget Final Budget OPERATING REVENUES Charges for Services-Intemal $ 567,960 $ 567,960 $ 505,458 $ (62,502) $ (62,502) Charges for Services-Other 44,000 44,000 41,900 (2,100) (2,100) Total Operating Revenues $ 611,960 $ 611,960 $ 547,358 $ (64,602) $ (64,602) OPERATING EXPENSES Operating Expenses $ - $ - $ - $ - $ - Maintenance Expenses - - - - - Insurance Gaims and Expenses - - - - - Depredation - - 326,439 (326,439) (326,439) Capital Outlays 400,000 400,000 201,179 198,821 198,821 Total Operating Expenses $ 400,000 $ 400,000 $ 527,618 $ (127,618) $ (127,618) OPERATING INCOME(LOSS) $ 211,960 $ 211,960 $ 19,740 $ (192,220) $ (192,220) NON-OPERATING REVENUES(EXPENSES) Investment Income $ 40,000 $ 40,000 $ 98,320 $ 58,320 $ 58,320 Total Non-Operating Revenues(Expenses) $ 40,000 $ 40,000 $ 98,320 $ 58,320 $ 58,320 Non-Revenues Interfund Loan Repayments $ - $ - $ - $ - $ - Income(Loss)before Contributions and Transfers $ 251,960 $ 251,960 $ 118,060 (133,900) (133,900) Capital Contributions $ - $ - $ 295,906 $ 295,906 $ 295,906 Transfers In(Out) - - - - - Sale ofAssets 1,000 1,000 - $ (1,000) $ (1,000) Total Capital Contributions $ 1,000 $ 1,000 $ 295,906 $ 294,906 $ 294,906 Changes in Net Assets $ 252,960 $ 252,960 $ 413,966 $ 161,006 $ 161,006 Prior Year Adjustments $ - $ - $ 23,675 $ 23,675 $ 23,675 Assets Purchased in Other Funds - - 382,998 382,998 382,998 NET ASSETS-BEGINNING $ 1,652,960 $ 1,652,960 $ 3,924,270 $ 2,271,310 $ 2,271,310 NET ASSETS-ENDING $ 1,905,920 $ 1,905,920 $ 4,744,909 $ 2,838,989 $ 2,838,989 See accompanying notes to the basic financial statements. 148 City of Rasoo Schedule of Orations-Budget to Actuals Central Stores Fund For the Year Ended December 31,2007 Criginal Final Variance to Variance to Budget Budget Actual Original Budget Final Budget OPERATING REVENUES Charges for Servioes-Internal $ 26,000 $ 26,000 $ 28,757 $ 2,757 $ 2757 Charges for Servioes-Other - - - - - Total Operating Revenues $ 26,000 $ 26,000 $ 28,757 $ 2,757 $ 2,757 OPERATING EXPENSES Operating Expenses $ 25,000 $ 45,000 $ 34,830 $ (9,830) $ 10,170 Kbntenanoe Expenses - - - - - Im.o-ance aains and Expenses - - - - - Depreciation - - - - - Capital Outlays - - - - - Total Operating Expenses $ 25,000 $ 45,000 $ 34,830 $ (9,830) $ 10,170 OPERATINGINCOIVE(LOSS) $ 1,000 $ (19,000) $ (6,073) $ (7,073) $ 12,927 NON-CPERATING REVENUES(E)T EIVSES) Investment Incorre $ - $ - $ (43) $ (43) $ (43) Total Non-Operati ng Revenues(Experises) $ - $ - $ (43) $ (43) $ (43) Income(Loss)before Contributions and Transfers $ 1,000 $ (19,000) $ (6,116) $ (7,116) $ 12,884 Capital Contributions $ - $ - $ - $ - $ - Transfers In(Out) - 20,000 20,000.00 20,000 - Changes in Net Assets $ 1,000 $ 1,000 $ 13,884 $ 12,884 $ 12,884 Prior Year Adjustments $ - $ - $ 1,648 $ 1,648 $ 1,648 Assets Purchased in Other Funds - - - NET ASSETS-BEGINNING $ 2,000 $ 2,000 $ 7,747 $ 5,747 $ 5,747 NET ASSETS-ENDING $ 3,000 $ 3,000 $ 23,279 $ 20,279 $ 20,279 See aom rpanying notes to the basic fi naridal statements. 149 City of Pasco Sd-iedule of Orations-Budget to Actuals Medical/Dental Insurance Fund For the Year Ended December 31,2007 Qiginal Final Varianoeto Variance to Budget Budget Actual Original Budget Final Budget OPERATING REVENUES Charges for Servioes-Internal $ 2,400,000 $ 2,400,000 $ 2,558,170 $ 158,170 $ 158,170 Charges forServioes-Other 240,000 240,000 227,269 (12,731) (12,731) Total Operating Revenues $ 2,640,000 $ 2,640,000 $ 2,785,439 $ 145,439 $ 145,439 OPERAl1NG EVENSES Operating ENxnses $ 42,100 $ 42,100 $ 27,360 $ 14,740 $ 14,740 Maintenance ExIxnses - - - - - Im.o-anoe aains and E>penses 2,480,000 2,480,000 2,486,648 (6,648) (6,648) Depreciation - - - - - Capital Outlays - - - - - Total Operating Expenses $ 2,522,100 $ 2,522,100 $ 2,514,008 $ 8,092 $ 8,092 OPERATINGINCOME(LOSS) $ 117,900 $ 117,900 $ 271,431 $ 153,531 $ 153,531 NON-OPERATING REVENUES(DTE SES) Investment Incorre $ 8,000 $ 8,000 $ 9,302 $ 1,302 $ 1,302 Total Non-Operating Revenues(Expenses) $ 8,000 $ 8,000 $ 9,302 $ 1,302 $ 1,302 Income(Loss)before Contributions and Transfers $ 125,900 $ 125,900 $ 280,733 $ 154,833 $ 154,833 Capital Contributions $ - $ - $ - $ - $ - Transfers In(Out) - - - - - Changes in Net Assets $ 125,900 $ 125,900 $ 280,733 $ 154,833 $ 154,833 Prior Year Adjustments $ - $ - $ (384) $ (384) $ (384) Assets Purchased in Other Funds - - - NET ASSETS-BEGINNING $ 340,900 $ 340,900 $ (82,758) $ (423,658) $ (423,658) NErASSETS-ENDING $ 466,800 $ 466,800 $ 197,591 $ (269,209) $ (269,209) See acoa rpanying notes to the basic fi Handal statements. 150 City of Rasoo SchedileofCpeAicns-ariget toPdLds Anirrd Cunt of Far the Year Bided Decerrber 31,2007 Qigim Final Varianceto Vaianceto Budget Budget Adual Oiginal Budget Final Bidget OPERAFINGFUvENLES Charges for Servioes-Internal $ - $ - $ 133,600 $ 133,600 $ 133,600 Charges for Servioes-Cther - - $ 306,661 306,661 306,661 Trial Crating Patenjes $ - $ - $ 440,261 $ 440,261 $ 440,261 CPERAII NG DFBMSES Crating Experses $ - $ - $ 428,576 $ (428,576) $ (44576) IVlsintenarm Expenses - - - - - Depreaaticn - - 11,693 (11,693) (11,693) Capital apys - - 19,082 (19,082) (191082) Trial Operating Expenses $ - $ - $ 459,351 $ (459,351) $ (459,351) CIDBFAIINGINOCIVE(LOSS) $ - $ - $ (19,090) $ (19,090) $ (19,090) IMCP -fl NG F EANJES(DIES) Irnvestrre Inoone $ - $ - $ (715) $ (715) $ (715) Total NmC r~t:ng FL=%�(Expenses) $ - $ - $ (715) $ (715) $ (715) moon!✓(Lass)before Contributions and Transfers $ - $ - $ (19,805) $ (19,805) $ (19,805) Capital Ca-tributions $ - $ - $ 57,241 $ 57,241 $ 57,241 Transfers In(Cut) - - - - - Changes in Net Assets $ - $ - $ 37,436 $ 37,436 $ 37,436 Rior Year M utmits $ - $ - $ - $ - $ - I\ETASSETS-BEGNVNG $ - $ - $ - $ - $ - NEf A9=-ENDING $ - $ - $ 37,436 $ 37,436 $ 37,436 See a000rrpanying notes tothe basicfiraual statwuls. 151 Sdiecl le of Operations-Budd to PdL ds RpM-ert Festal gxraticns BBress-type For the Year B-ded DeoeMber 31,2007 Gignal Final Varianoeto Variameto Budget Bidget Pdual Qignal Bridget Final Budge CPEPAllNG FEV34JES Charges for Savioes-Internal $ 306,420 $ 306,420 $ 320,880 $ 14,460 $ 14,460 ChaDes for Sermoes-Cther 2,000 2,000 14,950 12,950 12,950 Total Operating Fevxres $ 308,420 $ 308,420 $ 335,830 $ 27,410 $ 27,410 CPEPAII NG DFBNSES Operating Eames $ 16,700 $ 16,700 $ 18,600 $ (1,900) $ (11900) N/UrtenanoeEpa-rses 137,600 137,600 159,803 (72,203) (22,203) Ir&rarbe Claims and Epenses - - - - - Depredafion - - - - - Cg3tal Ways 5,010 5,001 - 5,010 5,010 Total Operating EVenses $ 159,300 $ 159,301 $ 178,403 $ (19,103) $ (19,103) CPUAIINGINC CN/E(LCSS) $ 149,120 $ 149,120 $ 157,427 $ 8,307 $ 8,307 NCr4CPE?All NIG FEME4,ES(DFE\ISES) In estrre Income $ 2010 $ 2,000 $ 1,880 $ (120) $ (120) Total Nor 4er"abrgF yes(5perses) $ 2,000 $ 2,000 $ 1,880 $ (120) $ (120) Inoona(Loss)before Contributions and Transfers $ 151,120 $ 151,120 $ 159,307 $ 8,187 $ 8,187 03pital0:)*bubcns $ - $ - $ - $ - $ - Transfers In(Cut) - - (88,869) (88,869) (88,860) CtinNetA---,--ts $ 151,120 $ 151,120 $ 70,438 $ (80,682) $ (80,682) Prior Year A4 ustrrerts $ - $ - $ - $ - $ - NETASSEFS-BEGINVNG $ 151,120 $ 151,120 $ (81,294) $ (232414) $ (232414) NET ASSET'S-ENDWo $ 302240 $ 302,240 $ (10,856) $ (313,096) $ (313,096) See ao mp"ng notes to the basic fi sandal state TB-ts. 152 City of Pasco Schedule of Operations-Budget to Actuals Equipment Rental Replacement Fund Business-type For the Year Ended December 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget OPERATING REVENUES Charges for Services-Internal $ 241,332 $ 241,332 $ 154,080 $ (87,252) $ (87,252) Charges for Services-Other - - - - - Total Operating Revenues $ 241,332 $ 241,332 $ 154,080 $ (87,252) $ (87,252) OPERATING EXPENSES Operating Expenses $ - $ - $ - $ - $ - Maintenance Expenses - - - - - insurance Claims and Expenses - - - - - Depredation - - 69,375 (69,375) (69,375) Capital Outlays 250,000 250,000 79,431 170,569 170,569 Total Operating Expenses $ 250,000 $ 250,000 $ 148,806 $ 101,194 $ 101,194 OPERATING INCOME(LOSS) $ (8,668) $ (8,668) $ 5,274 $ 13,942 $ 13,942 NON OPERATING REVENUES(E(PENSES) Investment Income $ 20,000 $ 20,000 $ 57,821 $ 37,821 $ 37,821 Total Non-Operating Revenues(Expenses) $ 20,000 $ 20,000 $ 57,821 $ 37,821 $ 37,821 NorrRevenues Interfund Loan Repaymats $ - $ - $ - $ - $ - Income(Loss)before Contributions and Transfers $ 11,332 $ 11,332 $ 63,095 $ 51,763 $ 51,763 Capital Contributions $ - $ - $ 295,906 $ 295,906 $ 295,906 Transfers In(Out) - - - - - Sale of Assets - - - - - Total Capital Contributions $ - $ - $ 295,906 $ 295,906 $ 295,906 Changes in Net Assets $ 11,332 $ 11,332 $ 359,001 $ 347,669 $ 347,669 Prior Year Adjustments $ - $ - $ (702,579) $ (702,579) $ (702,579) Assets Purchased in Other Funds - - 193,780 193,780 193,780 NET ASSETS-BEGINNING $ 1,311,332 $ 1,311,332 $ 2,261,442 $ 950,110 $ 950,110 NET ASSETS-ENDING $ 1,322,664 $ 1,322,664 $ 2,111,644 $ 788,980 $ 788,980 See accornpanying notes to the basic financial statements. 153 City of Pasco Schedule of Operations-Budget to Actuals Water/Sewer Fund For the Year Ended December 31,2007 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget OPERATING REVENUES Charges for Services-Other $ 12,965,000 $ 12,965,000 $ 13,816,835 $ 851,835 $ 851,835 Miscellaneous Revenue 1,860,000 1,860,000 1,952,100 92,100 92,100 Total Operating Revenues $ 14,825,000 $ 14,825,000 $ 15,768,935 $ 943,935 $ 943,935 OPERATING EXPENSES Personal Service $ 3,100,407 $ 3,100,407 $ 2,697,082 $ 403,325 $ 403,325 Supplies 622,300 622,300 385,282 237,018 237,018 Other Services and Charges 3,072,040 3,072,040 3,247,786 (175,746) (175,746) Capital Outlays 256,800 256,800 - 256,800 256,800 Taxes 1,852,500 1,852,500 1,815,355 37,145 37,145 Maintenance Expenses - - - - - Depreciation - - 4,535,918 (4,535,918) (4,535,918) Total Operating Expenses $ 8,904,047 $ 8,904,047 $ 12,681,423 $ (3,777,376) $ (3,777,376) OPERATING INCOME(LOSS) $ 5,920,953 $ 5,920,953 $ 3,087,512 $ (2,833,441) $ (2,833,441) NON-OPERATING REVENUES(EXPENSES) Investment Income $ 436,000 $ 436,000 $ 579,419 $ 143,419 $ 143,419 Proceeds from Debt Issuance - - 835,650 835,650 835,650 Farmland Rentals 500,000 500,000 686,140 186,140 186,140 Interest Expense (1,429,725) (1,429,725) (1,436,785) (7,060) (7,060) Amortization Expense - - (43,430) (43,430) (43,430) Miscellaneous Non-Operating Revenues 26,000 26,000 70,556 44,556 44,556 Total Non-Operating Revenues(Expenses) $ (467,725) $ (467,725) $ 691,550 $ 1,159,275 $ 1,159,275 Income(Loss)before Contributions and Transfers $ 5,453,228 $ 5,453,228 $ 3,779,062 $ (1,674,166) $ (1,674,166) Capital Contributions $ - $ - $ 6,081,445 $ 6,081,445 $ 6,081,445 Transfers In(Out) 85,000 85,000 (777,075) (862,075) (862,075) Changes in Net Assets $ 5,538,228 $ 5,538,228 $ 9,083,432 $ 3,545,204 $ 3,545,204 Prior Year Adjustments $ - $ - $ 551,478 $ 551,478 $ 551,478 Assets Purchased&transferred to other Funds $ - $ - $ (185,234) $ (185,234) $ (185,234) NET ASSETS-BEGINNING $ 14,319,955 $ 14,319,955 $ 99,537,307 $ 85,217,352 $ 85,217,352 NETASSETS-ENDING $ 19,858,183 $ 19,858,183 $ 108,986,983 $ 89,128,800 $ 89,128,800 See accompanying notes to the basic financial statements. 154 NICAG NO.0292 CITY OF PASCO,WASHINGTON SCHEDULE 8-REAL AND PERSONAL PROPERTY TAXES (ALL TAX-SUPPORTED FUNDS) For the Year Ended Deoernber 31,2007 TAXES TAX TAXES TAXES FUND RECEIVABLE RATE LEVIED TAXES NET TAX REC. NO. FUND NAIVE 1/1/2007 /$1,000 REPORT YEAR COLLECTED ADJUST. 12/31/2007 010 General Fund $304,618 $2.2494 $5,207,704 $5,244,075 $1,684 $269,931 271 93 Civic Center Bonds 2,248 0.0000 - 492 (284) 1,472 272 Fire/Library Bonds 11,612 0.0836 171,238 174,049 (253) 8,548 273 2002UTGOBonds 25,520 0.2096 384,112 389,576 (221) 19,835 TOTAL TAXES $332,643 $2.5426 $5,763,054 $5,808,192 $926 $299,786 Receivable amounts reflect balance after December 2007 tax payments. This amount agrees Wth the Tax Account Balance Report printed on 01/10/08 from Franklin County Treasurer's Offioe. 155 MCAG NO.0292 CITY OF PASCO,WASHINGTON SCHEDULE 9- LONG-TERM DEBT-L.I.D.ASSESSMENTS Year Ended December 31,2007 FINAL ORIGINAL ISSUE MATURITY INTEREST ISSUE ID.NO.AND DESCRIPTION PURPOSE DATE DATE RATE AMOUNT BONDS: 253.12 2001 U.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 12105 5.00% 57,662 263.63 LID 139 Note 581.20.77 12102 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 $1,198,615 156 BEGINNING AMOUNT ENDING UNMATURED AMOUNT DUE THIS UNMATURED DEBT ISSUED PERIOD DEBT LID 135 Bonds $ 190,000 $ 0 $ 70,000 $ 120,000 $ 190,000 $ 0 $ 70,000 $ 120,000 LID 125 Note $ 20,000 $ 0 $ 3,200 $ 16,800 LID 138 Note 25,700 0 3,800 21,900 LID 139 Note 4,400 0 400 4,000 LID 140 Note 7,600 0 5,400 2,200 LID 901 Note 6,050 0 1,950 4,100 $ 63,750 $ 0 $ 14,750 $49,000 $253,750 $ 0 $ 84,750 $ 169,000 157 MCAG NO.0292 CITY OF PASCO,WASHINGTON SCHEDULE 9-LONG-TERM DEBT-G.O.AND REVENUE Year Ended December 31,2007 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 12/1/2020 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 12/1/2019 5.2-5.6% 1,700,000 251.12 2002 UTGO Refunding Bond 594.74.63 11/1/2002 12/1/2013 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 12/1/2014 4.5-5.5% $1,197,931 263.81 Port of Pasco Airport Fire Bldg 7/12/2006 7/12/2016 4.00% 120,000 263.81 State L.O.C.A.L.Bond-Fire Truck 594.74.63 2/1/2000 6/1/2009 5.72% 225,000 263.81 State L.O.C.A.L.Bond-Animal Control 594.74.63 11/1/2001 12/1/2016 6.24% 275,500 263.81 State L.O.C.A.L.Bond-Patrol 594.74.63 12/1/2004 12/1/2008 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 1.0% 23,700,000 263.82 P.W.T.F.Loan#95025-Sewer Plant 594.35.63 6/30/1995 6/30/2015 1.0% 812,700 263.82 P.W.T.F.Loan#95026-Road 100 Water Res. 594.34.63 6/30/1995 6/30/2015 1.0% 2,687,300 252.11 1998 W/S Revenue Bonds 594.35.63 9/15/1998 6/1/2018 5.5-6.45% 2,255,000 252.15 1998 W/S Refunding Bonds 594.34.63 9/15/1998 6/1/2014 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 6/30/2020 1.0% 1,890,000 252.11 2001 W/S Revenue Bonds 594.35.63 9/1/2001 9/1/2016 3.5-4.85% 995,000 252.11 2002 W/S Revenue Bonds 594.35.63 10/1/2002 12/1/2022 2.0-4.7% 5,945,000 252.11 2005 W/S Revenue Bonds 594.35.63 12/5/2005 12/5/2025 3.5-4.25% 4,400,000 252.11 2007 W/S Revenue Bonds 594.35.63 7/2/2007 9/1/2022 4.25-4.75% 845,000 TOTAL UTILITY DEBT $54,000,000 TOTAL LONG-TERM DEBT $71,370,071 158 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 6,010,000 0 320,000 5,690,000 2002 LTGO & Refunding Bond 3,165,000 0 200,000 2,965,000 Total Councilmanic G.O. Bonds $ 9,175,000 $ 0 $520,000 $8,655,000 Voted G.O. Bonds 1999 G.O.B Library 1,300,000 0 100,000 1,200,000 2002 UTGO Refunding Bond 2,290,000 0 295,000 1,995,000 Total Voted G.O. Bonds $ 3,590,000 $ 0 $ 395,000 $ 3,195,000 TOTAL G.O. DEBT $ 12,765,000 $ 0 $ 915,000 $ 11,850,000 Other Debt TRAC $ 672,414 $0 $70,344 $ 602,070 Port of Pasco Airport Fire Bldg 115,898 0 10,127 105,771 State L.O.C.A.L. Loan 80,832 0 25,440 55,392 State L.O.C.A.L. Loan 211,565 0 15,537 196,028 State L.O.C.A.L. Loan 83,266 0 40,975 42,291 Total Other Debt $ 1,163,975 $ 0 $ 162,423 $ 1,001,552 UTILITY DEBT PWTF Loan#89036 $ 184,682 $0 $61,561 $ 123,121 State Revolving Loan Fund 17,856,043 0 1,104,575 16,751,468 PWTF Loan#95025 387,102 0 43,011 344,091 PWTF Loan#95026 966,378 0 107,375 859,003 1998 W/S Revenue Bonds 1,615,000 0 95,000 1,520,000 1998 W/S Refunding Bonds 5,270,000 0 560,000 4,710,000 1998 W/S Revenue Bonds 515,000 0 100,000 415,000 1999 W/S Revenue Bonds 635,000 0 50,000 585,000 P.W.T.F. Loan#00691043 1,555,966 0 111,141 1,444,825 2001 W/S Revenue Bonds 735,000 0 60,000 675,000 2002 W/S Revenue Bonds 5,065,000 0 255,000 4,810,000 2005 W/S Revenue Bonds 4,210,000 0 150,000 4,060,000 2007 W/S Revenue Bonds 0 845,000 0 845,000 TOTAL UTILITY DEBT $ 38,995,171 $ 845,000 $2,697,663 $ 37,142,508 TOTAL LONG-TERM DEBT $ 52,924,146 $ 845,000 $ 3,775,086 $49,994,060 159 MCAG NO. 0292 CITY OF PASCO,WASHINGTON SCHEDULE 10 - LIMITATION OF INDEBTEDNESS For the Year Ended December 31, 2007 Property Valuation for 2007 Taxes* $ 2,483,166,932 GENERALPURPOSES Limit of 2.5% of Assessed Value $ 62,079,173 Councilmanic: Capacity (1.5% of Assessed value) 37,247,504 Less: G.O. Bonds Outstanding $ 8,655,000 State LOCAL Loans 293,711 T.R.A.C. Obligation 602,070 Port of Pasco Airport Fire Bldg 105,771 Compensated Absences 1,415,301 11,071,853 (11,071,853) Available Unvoted -Approved Capacity $26,175,651 Voter-Approved: Capacity (1.0% of Assessed Value) $24,831,669 Less: G.O. Bonds Outstanding $3,195,000 3,195,000 (3,195,000) Available Voter-Approved Capacity $21,636,669 Remaining Capacity for General Purposes $47,812,320 UTILITY PURPOSES Voter-Approved: Capacity (2.5% of Assessed Value) $62,079,173 Available Utility Capacity $62,079,173 OPEN SPACE AND PARK FACILITIES Voter-Approved: Capacity (2.5% of Assessed Value) $62,079,173 Available Open Space and Park Facilities Capacity $62,079,173 TOTAL AVAILABLE DEBT CAPACITY $ 171,970,666 From Franklin County 2007 Assessments for 2008 Tax Collections Book 160 MCAG NO.0292 CITY OF PASCO,WASHINGTON SCHEDULE 12-OPERATION OF INVESTMENTS-ALL FUNDS For The Year Ended December 31,2007 INVESTMENT INVESTMENTS INVESTMENT FUND FUND BALANCE (AT COSTS) BALANCE NO. DESCRIPTION 1/1/2007 ACQUIRED LIQUIDATED 12/31/2007 620 Fire Pension $3,272,759 $1,014,396 $468,833 $3,818,322 650 Surplus Cash 32,639,420 43,816,738 39,964,415 36,491,743 TOTAL $ 35,912,179 $ 44,831,134 $ 40,433,248 $ 40,310,065 161 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, 2007 ALL MONEY HELD UNEXPENDED FOR REDEMPTION OF PROCEEDS OF ALL OTHER LONG-TERM DEBT BOND ISSUES MONIES CASH AND INVESTMENTS Cash and Deposits $ 692,678 $ 0 $ 13,802,559 Federal Securities 0 0 0 Federal Agency Securities 0 0 25,385,577 Other Securities 0 0 2,916,258 $ 692,678 $ 0 $ 42,104,394 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 $ 1,022,115 To State Administered Employee Retirement System 858,338 To Locally Administered Employee Retirement System 0 For Commerical Annuity Plans 0 Direct Pension Payments 88,581 TOTAL ALL RETIREMENT PROGRAMS $ 1,969,034 Insurance Programs For Health, Hospital, Dental and Disability Insurance - Self-Insured $ 2,577,960 For Other Dental Insurance - For Life Insurance 13,929 For Workmen's Compensation Insurance 213,860 For Unemployment Compensation -Self-Insured 47,322 TOTAL ALL INSURANCE PROGRAMS $ 2,853,071 162 THIS PAGE LEFT BLANK INTENTIONALLY 163 aTYOF PAScQ VW9 iwirm SCFEME 16-B(PEM M OF FEDERALAAAIRDS For the Year Baled DecerrbEr 31,2707 Grata-/ Federal Other Bhres Ns&M a*Gartor CFDA Identification Pass-TYra#i Drell RoganWe N Tber N.rtrber AAars AAGrS Trial Cepartnet d Justice: EJAerd Bym K r anal FamAa Oat P oga n(Nxcotics Task FOrce) 16.579 F97-374014 $ $ 38,640 $ 38,640 OirreMdimCcrrpa ticn(STCPFuTn.la0at2007) 16.576 FO&311034066 30,774 30,774 BJnard Bane Wrmal JusboeAssstanoe Oat(2005) 16.738 2005-DJ-RX 1713 2,992 2,992 EUIet Proof Vest Patresfip 16.607 2006-BU RX-06133357 4,323 4,328 76,734 76,734 U.S Dapatrrert of Hxsng&UtEn D?Acprat: CamTLnty D3AWrert Block Gant 14.218 B-97-f/r--rb 009 605,284 605,284 Cam uity D?Aoprret Block Oat Rogan Inane 14.218 4,402 4,402 Total US Departrrent of Hasng&Utan t?lcprTert 609,686 609,686 U.S Q4)Mnt of FlEdth&Firrmn Services Inched AAerck pedal Progarrs for ftPong Title III Part B Oats for S ATut e Samoes&Senor Casters-Foot Care 93.044 % 01391(PN 10,566 - 10,596 Oats for S,ppertiveSamoes&Senor Caters-R)dth Screen rig 93.044 $913 - 8,913 Total US Dept.of F filth&Hffm Servioes haired Awds 19,509 - 19,509 US Depatrrert of Trazsportab Posed ttra.ch Traffic Safely Carrrrission Aloohc Traffic Safety&Dusk Diving R atai 20.601 6,122 - 6,122 Coapant Rntedion Rugraii 20.602 1,362 1,362 Safety Belt Rerfun-erm 20.609 71,480 22,480 TotalCFEANyrber 29,964 - 29,964 Pbssed Ranch WASde Dxatrrert of Toispataticn HgmWRarnrig&Ccrshdcn-Flarl St.&20thAve.Sgiel-065-24 20205 SFR-&3515(005) 23,258 - 23,25B HgAayRarnirig&CarshTdonB urdenBudWdenrig-Rged05-3-06 20236 SR&356B(003) 16,814 - 16,814 Total CFD4Nxrber 20.205 40,072 - 40,072 Tdal US Dot.of Tra-q)atabcn 70,036 - 70,036 TUM-FEDERALASSSIFANCE $ 89,545 $ 687,592 $ 777,137 The aomTparVrig notes to the SJiedle d EVffdtu es d Federal Anarcls are an irtegal part dais atedfe 164 WAGNa 0292 aIYCFRO=VJUiN3fCN SO-EEU-E 16-STA1EA OLCJCALRN4]ALAMSfAN E Fcrt eYeEr IYd Dew 31,2307 Gatal Fecbd Ciller- Bgmxihxes Fbs,-Mm gi G to CFD4 Icb0ca icn Rb—,Ttro# ❑red PbganTiUe N.rrber NjTber Amrt Aw-cls Tctd RsmStod Dstrid: DNTzFbrtu-s� Irteiod AgncyAgeafret $ 11,389 $ - $ 11,389 V\khrrtcn 6Ae Dix trrat cf TrawatEtcn Trak SftCcmris icn-KstcrreRoLffiffIII&I-dster 7,725 - 7,715 Trafic&edlCc n dm-K/FBEaeIII KaFatrEcopTat 4,3199 - 4,399 Tr afic&eLyOaTnis9cn-a TEc FaceC9-FT-19 27455 $237 To-Epa cnInt7u r ilmad-Amuth0krpess 9E174(006}1 - 82,48D 8 ,48D 20,361 82,480 94,6x Vtsirrjrn 6Ae as cf Ojrrmme�Trad?&EDrric DAgxre t CALOCIAeGat L M=172 33,20 - 33,2 9 Gat fcrl3 m t alIStedLmL 06664104-U 1,2 ,387 - 1,25,387 1,29?616 - 1,29?616 D-9patrTat of Fi3db&H nay-'-emcea MR#rsptd PatdpeficnGat F10&11NC2 1,439 - 1,439 V\tEtirrtcn aAe DTairrat cf Esrio�y Sarnnde-Gat-R-Ese2 GD700014 - 1,172 1,172 TOM-SME&LOCALASBSfANCE $ 1,325805 $ 8 652 $ 1,401,220 Tfeaazr 1 3aVrrdru testotBSJ-eJJeofSateandLeiA 9Ataneae ai irtEo pat cf hs s le 165 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 2007 for the rehab loan program. The amount of principal and interest received in loan repayments for the year was $3,468.88. 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. 166 MCAG NO. 0292 CITY OF PASCO, WASHINGTON SCHEDULE 19 - LABOR RELATIONS CONSULTANTS For the Year Ended December 31, 2007 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: $34,915.67 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 28th day of May, 2008 to the best of my knowledge and belief: Signature J.3 m s Vhf . Chase F in a.Ti1=t H a n ge r 167 THIS PAGE LEFT BLANK INTENTIONALLY 168 CITY OF PASCO NET ASSETS BY COIVPOIVENT LAST FIVE FISCAL YEARS TABLE 1 (accrual basis of accounting) Fiscal Year 2007 2006 2005 2004 2003 Governmental activities Invested in capital assets,net of related debt $ 73,026,791 $ 59,050,242 $ 47,803,957 $ 38,549,311 $ 25,227,372 Restricted 3,941,492 5,737,749 5,733,980 4,617,188 4,434,452 Unrestricted 22,709,790 15,943,732 15,365,596 16,081,056 15,691,180 Total Governmental activities net assets $ 99,678,073 $ 80,731,723 $ 68,903,533 $ 59,247,555 $ 45,353,004 Business-type activities Invested in capital assets,net of related debt $ 97,635,365 $ 93,657,005 $ 69,646,174 $ 59,694,181 $ 46,026,297 Restricted 841,693 1,798,464 1,320,801 746,530 809,339 Unrestricted 12,610,713 6,251,986 23,041,136 14,174,070 11,946,875 Toted business-type activities net assets $ 111,087,771 $ 101,717,455 $ 94,008,111 $ 74,614,781 $ 58,782,511 Primary government Invested in capital assets,net of related debt $ 170,662,156 $ 152,717,247 $ 117,450,131 $ 98,243,492 $ 71,253,669 Restricted 4,783,185 7,536,213 7,054,781 5,363,718 5,243,791 Unrestricted 35,320,503 22,195,718 38,406,732 30,255,126 27,638,055 Total orimarygovernment net assets $ 210,765,844 $ 182,449,178 $ 162,911,644 $ 133,862,336 $ 104,135,515 "In 2007 the retroactive value for infrastructure was added to governmental activities. Comparative data is presented from FY 2003 foRwd. FY 2003 vw the year that GASB 34 reporting requirements were i r plamnted at the City of Pasco. 169 aTYOFPASoo CFW\ ES IN NETASSETS LAST ME RSCALYEPRS TAELE2 (acmd bass of amoLArg) Fiscal Year 2007 2006 2005 2004 2003 Bprem Gbrrrrental activities: General C33iam at $ $899,365 $ $146,549 $ 7,494,952 $ 6,750,019 $ 8,73600 Addal 750,294 741,933 620,544 623,553 552,712 Rhic Sft 17,213,554 16,562,068 14,003,815 13,056,141 12,442,251 R)dcal B-MMTErt 2,136,977 2,319,370 1,689,606 1,547,916 1,015522 Trarispatebcn 4,242,310 1,299,239 5944,289 3,798,766 2,169,415 Fgalth aid F ffm Samoss 39,740 44,242 45,044 46,392 42,573 t5axorricErMrrm-ert 1,116,613 1,647,209 933,784 819,382 1,174,284 OArea-dRgo-eaficn 5,713,063 4,872,473 4,892,990 5408,070 3,087,582 Irtaest on La-g Term DeU 639,570 681,825 714,225 774,196 82,i',276 Total g wwErtal acWties epases $ 40,751,507 $ 36,344,908 $ 36,339,249 $ 32,824,437 $ 3gM685 t3.Eines-,N eaWties VVAer $ 5,179,548 $ 5050,598 $ 3,949,704 $ 4,28$647 $ 3,617,315 Smff 6,274,04 5724,267 5877,674 5812,442 5160,509 Water Irooess Rause 1,500,346 1,558,076 1,465822 1,417,129 1,485074 StamWater 595,276 518408 377,349 315675 262,146 Irrigation 936,053 748,126 544,310 356,100 161,957 Total bLdness-typeatkAtesepases $ 14,48$847 $ 13,599,475 $ 12,214,859 $ 12,182,993 $ 1Q697,001 Total prirrarypemerteperses $ 55,240,354 $ 49,944,383 $ 4$554,108 $ 45014,430 $ 40,730,686 RnganReue lm Gb a Activities: Charges for Sakes $ 12,640,309 $ 11,362442 $ 1Q093,760 $ 9,462,017 $ $170,544 Operctinggartsa-docrtnbctiors 1,073,643 1,044,618 1,196,615 84,5657 1,155,796 Caotalgartsardoortributicrs 3,43$257 9,244,384 6,547,280 6,863,494 9,251,359 Total gaemmrtalativitiespragamrvxres $ 17,152,209 $ 21,651,454 $ 17,839,655 $ 17,171,168 $ 1$577,699 B-drss&type a Wties Chages for Saviaes $ 14,306,745 $ 14,185692 $ 13,111,651 $ 12153,235 $ 1Q938120 gDerati rig gatsa-docrtribLtiors - - - - Captal gats"oortribLhons 6,377,351 3,625382 14,aP,,830 9,91Q710 13,336,436 TotalbLdness-typeativitesprogamreue1m $ 20,684,096 $ 17,811,024 $ 27,314,481 $ 22,063,945 $ 24,274,556 Total pin-ay gaumertproganOMIJEs $ 37,836,305 $ 82,40,478 $ 4,5154,136 $ 39,235113 $ 42852,255 170 Fiscal Year 2007 2006 2005 2004 2003 Net( y C rrrsntal activities $ (23,569,298) $ (14,693,454) $ (18,499,594) $ (15,653,269) $ (11,465,966) Fisiness-WactkAties 6095,249 4,211,549 15,099,622 9,873,952 13,587,555 $ (17,404,049) $ (10,481,905) $ (3,399,972) $ (5,779,317) $ 2,121,569 Total prirrarygomment net(e.Vense)/rte General Revenues and Other Charges in Net Assets CxDjurrrental Activities: Taxes PYopertyTaxes $ 5,215,110 $ 4,748,82 $ 4,323,410 $ 4,092,074 $ 3,510,847 PmperiyTaxes lewd for Debt Servioe 559,304 554,260 559,661 606,713 527,870 Sales&Use Taxes 8,645,939 8,225795 7,857,149 7,412,127 6,347,538 Coapationed UilityTaxes 7,842,446 7,560,655 7,100,471 6,455872 5,844,358 Cther Taxes 3,729,218 3,305358 3,396,093 2,837,698 2,916,565 IrnAsstrrent Earrings 1,070,349 849,559 708,699 581,080 326,561 Mscellwea.s Povaijes 1,822,224 1,562,070 2,656,353 2,049,249 2,019,251 Transfers 846,418 113,478 (583,811) (2,198,779) 239,077 Toted go✓ennrnantal activities $ 29,731,008 $ 26,919,997 $ 26,018,025 $ 21,836,024 $ 21,732,097 Fi.rsiress-type activities IrnAestrrpnt Earnings $ 639,120 $ 622,290 $ 534,273 $ 384,335 $ 192,525 Mscellanea.s Pevoijes 2,708,796 3,136,171 3,586,435 3,721,174 2,560,208 Proceeds from Issuance of long-Term Debt 835,650 - - - Tra-tiers (865,944) (183,717) (57,871) 1,377,943 360,831 Total busress-type activities $ 3,317,62 $ 3,575,234 $ 4,062,837 $ 5,483,452 $ 3,113,564 Toted pnrrarywoment $ 33,048,630 $ 30,495,231 $ 30,080,862 $ 27,319,476 $ 24,845,661 Charges in Net Assets Cc✓emrrental activities $ 6,131,710 $ 12,226,543 $ 7,518,431 $ 6,182755 $ 10,256,111 B siress-typeactivities 9,512871 7,786,783 19,162,459 15,357,404 16,701,119 Total prirraryga✓ meant $ 15644,581 $ 20,013,326 $ 26,680,890 $ 21,540,159 $ 26,967,230 In 2007 the retroactive value for irfrastructr.re vas added to ga✓emn-ental activities. Corrpa,Ave data is presented from FY2003 forv\ard FY2003 ves the year that G4SB 34 reporting recprerrsrts vere i0errented at the C ty of Pasco. 171 CITY CF PASM FUND BALANCES,COVERVVENTAL FUNDS LAST FIVE FISCAL YEARS TABLE 3 (mcdfied accrual basis of accounting) FISCAL YEAR 2007 2006 2005 2004 2003 General Fund Preserved $ 1,516,965 $ 1,890,568 $ 58,565 $ 70,065 $ 2,030,965 Unreserved 9,087,738 6,861,201 9,109,055 7,589,416 8,702,383 Total general fund $ 10,604,703 $ 8,751,769 $ 9,167,620 $ 7,659,481 $ 10,733,348 Al Cther Governmental Funds Peserved $ 3,910,427 $ 5,728,634 $ 5,727,765 $ 4,615,723 $ 4,443,952 Unreserved,reported in: Special re✓enuefunds 8,259,914 6,115,159 4,912,230 7,142,351 4,223,127 Capital projects funds 773,275 670,640 281,474 59,718 Debt servicefunds (223,724) (1,158,341) (439,683) (206,002) (1,592,702) Total all other gme nn-a tarl funds $ 12,719,892 $ 11,356,092 $ 10,481,786 $ 11,611,790 $ 7,074,377 Total all governmental funds $ 23,324,595 $ 20,107,861 $ 19,649,406 $ 19,271,271 $ 17,807,725 Comparative data is presented from FY 2003 forward. FY 2003 was the year that G4SB 34 reporting requirements were i n oerrented at the City of Pasco. 172 CITY OF PASCO CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS LAST FIVE FISCAL YEARS TABLE 4 (modified accrual basis of accounting) 2007 2006 2005 2004 2003 Revenue Taxes $ 24,516,433 $ 23,361,504 $ 22,195,616 $ 20,490,847 $ 18,140,244 Licenses&Permits 1,923,553 2,116,234 2,338,294 2,337,476 1,878,727 Intergovernmental Revenue 4,719,252 10,802,165 3,494,011 2,627,953 3,158,428 Charges for Services 4,737,984 4,388,138 4,225,579 3,887,480 3,257,188 Fines&Forfeitures 1,054,334 828,758 746,043 740,100 757,451 Investment Income 960,833 781,406 661,045 532,305 295,730 Miscellaneous Revenue 1,772,971 2,021,943 2,413,914 1,920,964 2,019,251 Total Revenues $ 39,685,360 $ 44,300,148 $ 36,074,502 $ 32,537,125 $ 29,507,019 Expenditures General Government $ 4,251,117 $ 4,284,489 $ 4,195,820 $ 3,712,845 $ 3,235,752 Judicial 750,294 741,933 620,544 623,553 539,152 Public Safety 16,819,676 15,592,637 13,587,826 12,733,839 11,837,950 Physical Environment 1,825,137 1,608,581 1,443,870 1,246,408 919,853 Transportation 1,537,483 1,132,745 1,103,984 1,075,691 874,087 Health and Human Services 39,740 44,242 45,044 46,392 42,573 Economic Environment 745,388 680,863 647,534 461,338 463,720 Culture and Recreation 4,117,179 3,827,080 3,464,143 3,433,891 2,983,600 Capital Outlay 5,737,339 14,187,562 8,221,883 5,878,315 5,480,504 Debt Service Principal 1,162,174 1,120,148 1,105,858 1,115,814 1,211,900 Interest 639,570 681,825 714,225 774,198 823,276 Total Expenditures 37,625,097 43,902,105 35,150,731 31,102,284 28,412,367 Excess of revenues over (under)expenditures $ 2,060,263 $ 398,043 $ 923,771 $ 1,434,841 $ 1,094,652 Other Financing Sources Disposition of Capital Assets $ 157,018 $ - $ 40,825 $ 367,017 $ 81,786 Proceeds of General L-T Debt - - - 219,302 - Insurance Recoveries (103) 639 30,271 17,941 828 Operating Transfers-(In) 4,984,301 5,864,429 5,321,850 4,260,382 2,017,250 Operating Transfers-(Out) (4,246,752) (5,710,114) (6,068,298) (4,628,054) (1,947,529) Total other financing sources $ 894,464 $ 154,954 $ (675,352) $ 236,588 $ 152,335 Net change in fund balance $ 2,954,727 $ 552,997 $ 248,419 $ 1,671,429 $ 1,246,987 Debt services as a percentage of noncapital expenditures 5.65% 6.06% 6.76% 7.49% 8.87% Comparative data is presented from FY 2003 forward. FY 2003 was the year that GASB 34 reporting requirements were implemented at the City of Pasco. 173 CITY OF PASCO ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS TABLE 5 Total TOTAL Direct Residential Commercial Industrial ASSESSED Tax YEAR Property Property Property VALUATION Rate 1998 $ 691,388,908 $ 71,662,167 $ 37,311,745 $ 800,362,820 $3.1553 1999 $ 771,740,101 $ 71,270,222 $ 37,683,914 $ 880,694,237 $2.9419 2000 $ 816,593,971 $ 96,120,203 $ 38,900,998 $ 951,615,172 $3.7332 2001 $ 876,656,716 $ 105,259,330 $ 49,983,958 $ 1,031,900,004 $3.6360 2002 $ 968,149,205 $ 109,023,302 $ 49,983,958 $ 1,127,156,465 $3.6625 2003 $ 1,185,853,800 $ 64,831,531 $ 53,394,900 $ 1,304,080,231 $3.1982 2004 $ 1,608,203,667 $ 116,704,391 $ 54,917,281 $ 1,779,825,339 $3.1524 2005 $ 1,838,147,975 $ 81,762,754 $ 52,699,742 $ 1,972,610,471 $2.8047 2006 $ 1,685,326,737 $ 85,759,899 $ 54,276,830 $ 1,825,363,466 $2.7414 2007 $ 2,309,543,400 $ 113,973,204 $ 59,650,331 $ 2,483,166,935 $2.5427 SOURCE: FRANKLIN COUNTY ASSESSORS OFFICE 174 THIS PAGE LEFT BLANK INTENTIONALLY 175 CITY OF PASCO,WASHINGTON DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years Table 6 (rate per$1,000 of assessed value) CITY OF PASCO DIRECT TAX RATES: 2007 2006 2005 2004 General Levy $2.2494 $2.3912 $2.4157 $2.6617 Debt Service Levy 0.2097 0.2500 0.2748 0.3452 Fire/Library Levy 0.0836 0.1002 0.1142 0.1455 SUBTOTAL CITY OF PASCO DIRECT TAX RATES 2.5427 2.7414 2.8047 3.1524 OVERLAPPING GOVERNMENTAL TAX RATES: State 2.3992 2.6480 2.8387 3.1867 County 1.8004 1.7489 1.7917 1.9035 County-TRAC Bond 0.0989 0.1059 0.1140 0.1574 County-Court House Remodel 0.2214 0.2424 0.2689 0.3384 Pasco School District 6.9202 6.5151 6.5689 6.6254 Port of Pasco 0.3879 0.3993 0.4099 0.4357 SUBTOTAL OVERLAPPING TAX RATES 11.8280 11.6596 11.9921 12.6471 TOTAL DIRECT AND OVERLAPPING TAX RATES $ 14.3707 $ 14.4010 $ 14.7968 $ 15.7995 Source: Franklin County 176 2003 2002 2001 2000 1999 1998 $2.6839 $3.0634 $3.0434 $3.0710 $2.4963 $2.5450 0.3812 0.4788 0.5017 0.5479 0.4456 0.6103 0.1331 0.1203 0.0909 0.1143 0 0 3.1982 3.6625 3.6360 3.7332 2.9419 3.1553 2.8664 3.0429 3.0351 3.2864 3.4922 3.5470 2.0590 2.0600 2.0338 2.0493 2.0601 2.2660 0.1214 0.1561 0.1888 0.1888 0.1888 0.0000 0.3515 0.0000 0.0000 0.0000 0.0000 0.0000 6.4838 6.2382 6.4330 6.7376 5.8521 5.7739 0.4447 0.4480 0.4500 0.4500 0.4500 0.4500 12.3268 11.9452 12.1407 12.7121 12.0432 12.0369 $ 15.5250 $ 15.6077 $ 15.7767 $ 16.4453 $ 14.9851 $ 15.1922 177 Table 7 Top 20 Principal Sales Tax Payers Due to the confidential nature of the information, this table has been removed. 178 CITY OF PASCO TOP 10 INDUSTRIES THAT GENERATE SALES TAX LAST THREE FISCAL YEARS TABLE 8 2007 2006 2005 Sales %of Sales %of Sales %of Tax Total Tax Total Tax Total Industries Paid Rank Sales Tax Paid Rank Sales Tax Paid Rank Sales Tax CONSTRUCTION OF BUILDINGS $ 394,555 6 5.00% $ 421,800 4 5.59% $ 588,145 4 8.12% SPECIALTY TRADE CONTRACTORS 506,250 3 6.42% 628,960 3 8.33% 600,061 3 WHOLESALE TRADE,DURABLE GOODS 919,467 2 11.66% 776,944 2 10.29% 693,075 2 9.57% MOTOR VEHICLE AND PARTS DEALERS 1,499,029 1 19.01% 1,553,185 1 20.57% 1,655,908 1 22.87% BUILDING MATERIAL AND GARDEN 358,462 9 4.55% 249,406 9 3.30% 216,046 8 GENERAL MERCHANDISE STORES 455,016 4 5.77% 408,218 5 5.41% 0.00% MISCELLANEOUS STORE RETAILERS 466,361 5 5.92% 381,601 6 5.05% 333,887 5 4.61% TELECOMMUNICATIONS 218,985 10 2.78% 200,425 10 2.65% 0.00% RENTAL&LEASING SERVICES 374,108 8 4.75% 357,386 7 4.73% 330,256 6 4.56% FOOD SERVICES,DRINKING PLACES 379,450 7 4.81% 338,591 8 4.48% 290,182 7 4.01% RAIL TRANSPORTATION 197,601 9 2.73% GASOLINE STATIONS 195,279 10 2.70% TOTAL TAXES&PERCENTAGES $5,571,683 70.67% $5,316,516 70.40% $5,100,440 59.17% Source:Washington Department of Revenue 179 CITY OF PASCO,WASHINGTON PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Table 9 PRIOR YEAR OUTSTANDING 2007 2006 2005 2004 DELINQUENT TAXES $ 343,998 $ 355,354 $ 281,787 $ 250,295 CURRENT TAX LEVIED General Levy $5,207,704 $ 4,754,526 $ 4,301,624 $ 3,827,462 Debt Service Levy 384,112 384,424 376,404 378,205 L.I.D. Guaranty Levy 0 0 0 0 Road Levy 0 0 0 0 Fire/Library Levy 171,238 175,469 180,589 185,920 County Treasurer's Adjustment 926 (812) 67,540 12,518 TOTAL CURRENT TAX LEVIED $ 5,763,980 $ 5,313,607 $ 4,926,157 $ 4,404,105 TAX COLLECTED Current Taxes Collected $ 5,600,010 $ 5,113,807 $ 4,674,325 $ 4,210,471 Delinquent Taxes Collected 208,182 211,155 178,265 162,142 TOTAL TAX COLLECTED $ 5,808,192 $ 5,324,962 $ 4,852,590 $ 4,372,613 OUTSTANDING DELINQUENT TAXES $ 299,785 $ 343,998 $ 355,354 $ 281,787 Percent of Current Levy Collected 97.16% 96.24% 94.89% 95.60% Percent of Total Collected to Levy 100.77% 100.21% 98.51% 99.28% Percent of Delinquent Taxes to Levy 5.20% 6.47% 7.21% 6.40% Source: Franklin County Treasurer's Office Tax Rolls 180 2003 2002 2001 2000 1999 1998 $ 253,176 $ 284,685 $ 243,387 $ 243,387 $ 195,438 $ 206,170 $ 3,500,021 $ 3,452,931 $ 3,142,355 $ 2,923,906 $ 2,198,741 $ 2,040,392 371,935 411,418 410,991 413,955 315,381 392,746 0 0 0 0 0 0 0 0 0 0 0 0 154,051 125,570 91,002 106,203 0 0 11,197 ( 1,291 ) 9,355 6,073 19,134 ( 618 ) $ 4,037,204 $ 3,988,628 $ 3,653,703 $ 3,450,137 $ 2,533,256 $ 2,432,520 $ 3,868,786 $ 3,839,342 $ 3,471,952 $ 3,278,572 $ 2,370,484 $ 2,348,527 171,299 180,795 140,453 127,118 114,823 94,725 $ 4,040,085 $ 4,020,137 $ 3,612,405 $ 3,405,690 $ 2,485,307 $ 2,443,252 $ 250,295 $ 253,176 $ 284,685 $ 287,834 $ 243,387 $ 195,438 95.83% 96.26% 95.03% 95.03% 93.57% 96.55% 100.07% 100.79% 98.87% 98.71% 98.11% 100.44% 6.20% 6.35% 7.79% 8.34% 9.61% 8.03% 181 CITY OF PASCO RATIOS OF OUTSTANDWG DEBT BY TYPE LAST RVE RSCAL YEARS TABLE 10 (dollars in thousands,except per capita) Govemmental Activities Business-type Activities General Water/ Other Total Obligation Special Sewer Loans Primary Per Year Bonds Assessments Bonds Payable Government Capita(a) 2003 15,727 2,080 17,614 24,328 59,749 1,590 2004 14,500 1,501 15,940 23,694 55,635 1,362 2005 13,650 2,329 19,300 22,340 57,619 1,304 2006 12,955 3,288 18,045 20,950 55,238 1,160 2007 11,850 2,853 17,620 19,523 51,846 1,026 Note:Details regarding the Citys outstanding debt can be found in the notes and schedules to the financial statements. (a)See Table for population data. This ratio was calculated using population for the applicable fiscal year. Comparative data is presented from FY 2003 forward. FY 2003 was the year that GASB 34 reporting requirements were implemented at the City of Pasco. 182 CITY OF PASCO,WASHINGTON RATIOS OF GENERAL BONDED DEBT OUTSTANDING AND BONDED DEBT PER CAPITA Last Ten Fiscal Years Table 11 Ratio of Bonded General Total Debt to Bonded Assessed Obligation Bonded Assessed Debt Per Year Population(1) Value(2) Bonds Debt Value Capita 1998 25,300 800,362,820 9,110,000 9,110,000 1.14% 360.08 1999 27,000 880,694,237 14,725,000 14,725,000 1.67% 545.37 2000 32,066 951,680,952 14,516,707 14,516,707 1.53% 452.71 2001 33,010 1,031,900,004 16,894,071 16,894,071 1.64% 511.79 2002 36,700 1,127,156,465 19,147,134 19,147,134 1.70% 521.72 2003 37,580 1,304,080,231 15,727,209 15,727,209 1.21% 418.50 2004 40,840 1,779,825,339 14,500,000 14,500,000 0.81% 355.04 2005 44,190 1,987,640,071 13,650,000 13,650,000 0.69% 308.89 2006 47,610 2,313,853,466 12,955,000 12,955,000 0.56% 272.11 2007 50,510 2,483,166,932 11,850,000 11,850,000 0.48% 234.61 Note: Details regarding the City's outstanding debt can be found in the notes and schedules to the financial statements. Sources: (1)State of Washington Office of Financial Management (2)Franklin County Assesor's Office 183 CITY OF PASCO,WASHINGTON COMPUTATION OF LEGAL DEBT MARGIN For the Year Ended December 31,2007 Table 12 Property Valuation for 2007 Taxes* $ 2,483,166,932 GENERALPURPOSES Limit of 2.5% of Assessed Value $62,079,173 Councilmanic: Capacity(1.5% of Assessed value) 37,247,504 Less: G.O. Bonds Outstanding $ 8,655,000 State LOCAL Loans $238,319 T.R.A.C. Obligation 105,771 State L.O.C.A.L. Loan 55,392 Compensated Absences 1,415,301 10,469,783 (10,469,783) Available Unvoted -Approved Capacity $26,777,721 Voter-Approved: Capacity(1.0% of Assessed Value) $24,831,669 Less: G.O. Bonds Outstanding $0 0 0 Available Voter-Approved Capacity $24,831,669 Remaining Capacity for General Purposes $51,609,390 UTILITY PURPOSES Voter-Approved: Capacity(2.5% of Assessed Value) $62,079,173 Available Utility Capacity $62,079,173 OPEN SPACE AND PARK FACILITIES Voter-Approved: Capacity(2.5% of Assessed Value) $62,079,173 Available Open Space and Park Facilities Capacity $62,079,173 TOTAL AVAILABLE DEBT CAPACITY $ 175,767,736 From Franklin County 2007 Assessments for 2008 Tax Collections Book 184 CITY OF PASCO,WASHINGTON PLEDGED-REVENUE COVERAGE Last Ten Fiscal Years Table 13 WATERISEWER BONDS Operating Expenses Gross Less Non-Cash Net Available Total Operating Expenses and for Debt Annual Bond Year Revenue City Taxes Service Principal Interest Debt Service Coverage 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 2007 15,768,935 6,330,150 9,438,785 1,270,000 806,613 2,076,613 4.55 185 CITY OF PASCO,WASHINGTON SPECIAL ASSESSMENTS COLLECTIONS Last 10 Fiscal Years Table 14 Assessments Ratio of Outstanding Additions Collected Collections Outstanding Assessments and Total During to Total Assessments Year January 1, Adjustments Assessments Year Assessments December 31, 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 2007 3,287,522 (9,310) 3,278,212 424,814 12.96% 2,853,398 186 CITY OF PASCO DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS TABLE 15 MEDIAN PER CAPITA AVE EARNINGS HOUSEHOLD MEDIAN SCHOOL UNEMPLOYMENT FISCAL POPULATION INCOME PERJOB INCOME AGE ENROLLMENT RATE YEAR (1) (2) (2) (6) (3) (4) (5) 1998 25,300 $ 18,361 $ 29,555 $ 37,217 28.40 8,392 8.7% 1999 27,000 $ 18,485 $ 29,124 $ 38,991 28.20 8,538 8.9% 2000 32,066 $ 19,259 $ 30,473 $ 40,375 28.10 8,850 7.2% 2001 33,010 $ 20,625 $ 30,598 $ 41,154 28.00 9,227 8.0% 2002 34,630 $ 20,760 $ 31,949 $ 40,900 28.19 9,785 8.5% 2003 37,580 $ 21,028 $ 33,865 $ 40,417 28.47 10,353 8.8% 2004 40,840 $ 20,971 $ 35,350 $ 40,511 27.40 11,038 7.5% 2005 44,190 $ 21,048 $ 36,134 $ 41,176 27.00 11,828 7.0% 2006 47,610 $ 21,317 $ 36,895 $ 39,831 27.00 12,516 7.0% 2007 50,510 $ 20,573 Not Available Not Available 28.66 12,610 6.4% SOURCE (1)State of Washington Office of Financial lVbnagement (2)Washington State University Northwest Income Indicators Project Repot-Inforrnatioi 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 187 CITY OF PASCO NEW CONSTRUCTION, BANK DEPOSITS AND PROPERTY VALUE LAST TEN FISCAL YEARS TABLE 16 NEW CONSTRUCTION (1) BUILDING FISCAL PERMITS SINGLE MULTIPLE YEAR ISSUED DWELLING DWELLING OTHER TOTAL 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 2,246 137,860,619 - 64,422,671 202,283,290 2007 1,886 104,370,010 19,517 83,391,801 187,781,328 BANK DEPOSITS(IN $1,000)(2) ASSESSED TAXABLE PROPERTY FOR THE FISCAL YEAR ENDED JUNE 30 VALUATION (IN $1,000)(3) 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 2007 $ 329,274 2007 2,483,167 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 188