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HomeMy WebLinkAbout2008 ACFR OF THE CITY OF PASCO, WASHINGTON COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2008 CITY OF 1PAuSCO I Prepared by the Administrative and Community Services Department Stanley R. Strebel, Director James W. Chase, Financial Services Manager TABLE OF CONTENTS INTRODUCTORY SECTION Letterof Transmittal ........................................................................................... 1 Directory of City Officials .................................................................................... 6 Directory of Management Team ............................................................................. 7 OrganizationalChart ........................................................................................... 8 FINANCIAL SECTION Independent Auditor's Report on Financial Statements ................................................. 9 Management's Discussion and Analysis .................................................................. 11 Basic Financial Statements Government Wide Financial Statements Statement of Net Assets — Governmental and Business-Type Activities .................... 24 Statement of Activities—Governmental and Business-Type Activities ..................... 25 Fund Financial Statements Balance Sheet—Governmental Funds ............................................................ 26 Statement of Revenues, Expenses and Changes in Fund Balances— Governmental Funds ........................................................................ 27 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances to the Statement of Activities—Governmental Funds .............. 28 Statement of Net Assets—Proprietary Fund ................................................. 30 Statement of Revenues, Expenses and Changes in Net Assets—Proprietary Funds........ 32 Statement of Cash Flows—Proprietary Fund .................................................... 33 Statement of Net Assets —Fiduciary Funds ...................................................... 35 Statement of Changes in Fiduciary Net Assets ................................................... 36 Notes to Financial Statements ............................................................................... 37 Required Supplemental Information Combining and Individual Fund Statements and Schedules Schedule of Operations—Budget to Actual— General Fund .................................. 70 Schedule of Operations—Budget to Actual—Water/Sewer Fund ............................. 71 Combining Balance Sheet—Non-major Governmental Funds ............................... 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Non-major Governmental Funds .......................................... 81 Statement of Revenues, Expenses and Changes in Fund Balances-Budget and Actual Comparison—Non-major Special Revenue Governmental Funds .............. 89 Combining Statement of Net Assets—Internal Service Funds ............................... 90 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets—Internal Service Funds .............................................................. 92 Combining Statement of Cash Flows—Internal Service Funds .............................. 94 Additional Information Schedule 8 -Real and Personal Property Taxes ........................................................... 96 Schedule 9 -Long-Term Debt-L.I.D. Assessments ..................................................... 97 Schedule 9 -Long-Term Debt—General Obligation and Revenue .................................... 99 Schedule 10 -Computation of Legal Debt Margin ......................................................... 101 Schedule 12 -Operation of Investments -All Funds ...................................................... 102 Schedule 13 -Cash and Investments ......................................................................... 103 Schedule 14 -Short Term Interest Bearing Debt .......................................................... 103 Schedule 15 -Contributions for Employee Benefits ......................................................... 103 Schedule 16 -Expenditures of Federal Awards & State and Local Financial Assistance............. 104 Notes to Schedule of Expenditures of Federal Awards & State and Local Financial Assistance 106 Schedule 19 -Labor Relations Consultants ................................................................. 107 STATISTICAL SECTION Table 1 Net Assets by Component ................................................................. 109 Table 2 Changes in Net Assets ...................................................................... 110 Table 3 Fund Balances, Governmental Funds ..................................................... 112 Table 4 Changes in Fund Balances, Governmental Funds ....................................... 113 Table 5 Assessed and Actual Value of Taxable Property ....................................... 114 Table 6 Direct and Overlapping Property Tax Rates ............................................. 116 Table 7 Property Tax Levies and Collections ..................................................... 118 Table 8 Top 10 Property Tax Payers ............................................................... 120 Table 9 Top 10 Industries Generating Sales Taxes .............................................. 121 Table 10 Ratios of Outstanding Debt by Type ..................................................... 122 Table 11 Ratio of General Bonded Debt Outstanding ............................................ 123 Table 12 Computation of Legal Debt Margin ...................................................... 124 Table 13 Pledged Revenue Coverage ................................................................ 125 Table 14 Special Assessments Collections ......................................................... 126 Table 15 Demographic Statistics ..................................................................... 127 Table 16 New Construction, Bank Deposits and Property Value ................................ 128 January 25, 2010 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, 2008. 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. I 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. 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 2008 Tri-Cities Metropolitan Area population was approximately 230,300 and Pasco's estimated population was 52,290. This represents a 63% 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 estimated total farm acreage of 492,000, comprised of 242,000 irrigated acres and 250,000 dry land acres. Portions of the County lie within one of the world's largest irrigation districts, the U.S. Bureau of Reclamation's Columbia Basin Irrigation Project. In the early 1940's Congress authorized a plan to provide for irrigation of over 1 million acres in the Columbia Basin region of Washington State. Construction of the Irrigation Project began in 1946. The Grand Coulee Dam is the only source of both water and hydroelectric power for the Project. With the growth in farm production due to the Irrigation Project, food processing has become a major factor in the area's economy. The Pasco Processing Center(the"Center"), a 240-acre industrial park designed for the food processing industry, was constructed in 1995. The Center provides food processors the unique advantage of handling wastewater disposal via the City's industrial wastewater system, which has additional capacity for growth. The Center was developed jointly by the City, Port of Pasco and Franklin County Public Utility District. This system pumps the wastewater into huge storage ponds,which is sprayed onto crops for disposal. These storage ponds allow processors to operate year round. Since completion, several large food processors have built plants that utilize this facility. J.R. Simplot Food Group (now know as Pasco Processing LLC) 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. Bybee Fresh Foods completed construction of a $12 million processing plant in 2006 and relocated its Yakima Valley operations. 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 1, LLC, owners of the Tri-City Dust Devils and a single A affiliate of the Colorado Rockies of Major League Baseball. 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 and 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 2008, 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 opened a super center store; Lowe's opened a home improvement store; and a 15-screen theater complex was 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 installed 600 new box seats in the upper seating section of the stadium in time for the 2008 season opener. With the addition of the shade structure and additional box seating options, it is anticipated that attendance will increase. 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. In 2008, the Pasco School District continued construction on the 341,000 square foot building, grounds and practice field that will be new high school - Chiawana High School. The total contract amount is approximately$72 million with completion estimated to be in time to start school in the fall of 2009. In 2008,the City issued a total of 1,677 Building Permits representing over$122 million in construction costs. Of the total permits, 518 were for new single-family residences and equates to $83 million in assessed valuation. The average value of a new home in Pasco was just under$200,000 in 2008. 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 municipal 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. • Complete preliminary design of an overpass for Lewis Street above the railroad tracks east of downtown and pursue federal and state dollars to finance the construction. • 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 within the 6itY. 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 strategic development plan for 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 adverse effects 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, to include potential undergrounding overhead utilities, and begin implementation the plan. • Update the City's "master plan" for rivershore improvements along 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 in those funds. 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 Workers' Compensation Retrospective Rating Program which provides cities and towns with expertise and services to lower their Labor& Industries (L&I) claims experience resulting in potential refunds of a portion of the L&I premiums. 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 those 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. ARespull mitt chfie , Stanley R revel, Directo Administrative and Community Services DIRECTORY OF CITY OFFICIALS As of December 31, 2008 LENGTH OF TERM ELECTED OFFICIALS SERVICE EXPIRES MAYOR Joyce Olson 2 12/31/09 COUNCILMEMBERS Rebecca M. Francik 11 12/31/11 Michael Garrison 20 12/31/09 Robert Hoffman 3 12/31/09 Tom Larsen 7 12/31/09 Matt Watkins, Mayor Pro-Tem 4 12/31/11 Al Yenney 1 12/31/11 LENGTH IN YEARS OF ADMINISTRATIVE OFFICIALS POSITION SERVICE CITY MANAGER Gary D. Crutchfield 24 30 PUBLIC WORKS DIRECTOR Robert J. Alberts 14 14 ADMISTRATIVE & COMMUNITY SERVICES DIRECTOR Stanley R. Strebel 10 10 COMMUNITY DEVELOPMENT DIRECTOR Rick White 1 1 FIRE CHIEF Position currently vacant POLICE CHIEF Denis W. Austin 13 13 MUNICIPAL COURT JUDGE Mary B. Ramirez 22 22 MANAGEMENT TEAM As of December 31, 2008 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 Jesse Rice, Information Services Manager Paul Whitemarsh, Recreation Services Manager Dan Dotta, Facilities Manager Community Development Rick White, Director Michel Nickolds, Inspection Services Manager Fire Vacant, 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 2008 ORGANIZATION CHART PASCO CITY COUNCIL CITY MANAGER PASCO CITY COUNCIL PASCO CITY COUNCI FULIUL FIRE CHIEF CHIEF PUBLIC ADMINISTRATIVE WORKS/ & COMMUNITY ENGINEERING SERVICES DIRECTOR DIRECTOR I WATER/WW UTILITY/ ADMIN. SVCS. MUNICIPAL TREATMENT STREET MANAGER/ I PROSECUTING PLANT DIV. MAINTENANCE CITY CLERK ATTORNEY MANAGER FIELD DIV MGR PASCO CITY COUNCIL PASCO CITY COUNCIL City of Pasco, -Washington 2008 ComMehensive AnnuaCFinanciaCRetiort 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, 2008 through December 31, 2008 Mayor and City Council City of Pasco Pasco, Washington We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Pasco, Franklin County, Washington, as of and for the year ended December 31, 2008, which collectively comprise the City's basic financial statements, and have issued our report thereon dated January 25, 2010. The prior year comparative information has been derived from the City's 2007 basic financial statement that we issued our report thereon dated September 11, 2008. During the year ended December 31, 2008, the City implemented Governmental Accounting Standards Board Statement 45, Accounting and Financial Reporting by Enmployers for Postemployment Benefits Other Than Pensions. 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 Washington State Auditor's Office 9 City of Pasco, Washington 2008 Comprehensive Annual TinanciaCPeport 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 deficiency described in the accompanying Schedule of Audit Findings and Responses to be a significant deficiency in internal control over financial reporting, and is reported as Finding 1. 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, of the significant deficiencies described above, we consider Finding 1 to be a material weakness. 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. ,.44. BRIAN SONNTAG, CGFM STATE AUDITOR January 25, 2010 Washington State Auditor's Office 10 MANAGEMENT'S DISCUSSION AND ANALYSIS This discussion and analysis, in conjunction with the Letter of Transmittal and other components of the City of Pasco's Comprehensive Annual Financial Report (CAFR) provide an overview of the City's financial activities for the fiscal year ended December 31, 2008. 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. 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 Auditor's Office. State law also provides for annual independent audits by the State Auditor's Office and requires timely submission of annual financial reports to their office for review. Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The 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 for fiscal year December 31, 2008 ended with an Unrestricted Net Asset Balance of$23,750,360 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$5,711,501 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, General Revenues,primarily from property,retail and other taxes were used to support the following major activities: • $9,595,673 for General Government purposes—Administration,Finance, City Council, and Facilities; • $813,800 for Judicial services—Municipal Courts; • $18,295,546 for Security of Persons and Property—Police,Fire, Probation Services,Violations, and Protective Inspections; • $3,531,581 for Physical Environment—Engineering; • $1,198,685 for Economic Environment—Community Development; • $5,982,584 for Cultural&Recreation—Parks &Recreation; • $4,330,917 for Transportation—Streets Maintenance &Improvements, Multi-Model Facility. • $56,652 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. 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 2008 has improved its position since 2007. This is shown by the total increased net assets of $17,446,270. Of this increase $12,339,024 was in governmental activities and $5,107,246 was in business-type activities. Much of the City's improved position has been due to continued commercial and residential construction and annexations of county property resulting in nearly $15.0 million of contributed infrastructure during 2008. 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. 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 the 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 2008 were $229,243,516. The following table reflects the PASCO CITY COUNCIL Ne Assets(in millions) CI Zoos PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY JUDGE DEVELOPME INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER FACILITIES RECREATION JL�S DIVISION MANAGER MANAGER Financial informatioi condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Activities Current and other Assets I Capital Assets Other Non-Current Assets Total Assets 1 Statement of Activities The following condensed table of changes in net assets compares the revenues and expenses for the current year. Financial information from the previous year is also presented for comparison purposes. Table 2 Changes in Net Assets(in Millions) 2008 2007 PASCO CITY COUNCIL ap a ran s n ri u ions . . General Revenues:Property Taxes 5.51-5.515.20-5.20 Property Taxes levied for Debt Service 0.54-0.54 0.60-0.60 Sales&Use Taxes 8.84-8.84 8.60-8.60 Occupational Utility Taxes 8.69 -8.69 7.80-7.80 Other Taxes 4.65-4.65 3.70-3.70 Investment Earnings 0.99 0.43 1.41 1.10 0.60 1.70 Miscellaneous Revenues---1.80 2.70 4.50 Total Revenues 56.54 20.91 77.45 45.90 24.40 70.30 Program expenses including indirect expenses General Government 9.60-9.60 8.90-8.90 Judicial 0.81-0.810.80-0.80 Public Safety 18.30 48.30 17.20-17.20 Physical Environment 3.53-3.53 2.10-2.10 Transportation 4.33-4.33 4.20-4.20 Health and Human Services 0.06-0.06--Economic Environment 1.20-1.20 1.10-1.10 Culture and Recreation 5.98-5.98 5.70-5.70 Interest on Long Term Debt 0.59-0.59 0.60-0.60 Water-5.99 5.99-5.20 5.20 Sewer-6.32 6.32-6.40 6.40 Water Process Reuse-1.57 1.57 -1.50 1.50 Storm Water-0.610.61-0.60 0.60 Irrigation-1.01 1.01--Internal Service-0.48 0.48-0.90 0.90 Total Expenses 44.39 15.98 60.37 40.60 14.60 55.20 Changes in Net Assets 12.15 4.93 17.08 5.30 10.60 15.90 Transfers 0.61(0.61)-0.80(0.80)Total Changes in Net Assets$12.76$4.32$17.08$6.10$9.80$15.90 Revenue Hit1h1i2hts As can be seen in the preceding table, 2008 governmental revenues remained at virtually the same level as 2007 revenues. The same is also true for business-type revenues with the exception of capital grants and contributions. 16 Following is a graphical breakdown of revenues by general category for 2008: Sources of Revenues 2008 Investment Earnings 2% Charges for Non-Property Services 38% Taxes S 28% J 7 J 1 Operating Prop erty Grants& Taxes Capital Grants Contributions 1/° 8% & Contributions 23% Following is a graphical breakdown of expenditures by general category for 2008: I Comments on Pasco's economic growth are contained in the Transmittal Letter. The City's assessed value grew 15.2%for fiscal year 2008 to $2,863,125,470. This was driven by the $100 million in new construction values added during 2008. The City's general levy rate per$1,000 of assessed value was reduced by 1.2% for taxes paid during 2008. The City Funds Governmental Funds The governmental funds, as presented on the Governmental Funds Balance Sheet,reported a combined fund balance of$23,895,324. Major Funds The General Fund • Total assets increased by$11,920. This increase is due to repayment of interfund loans from non-major funds to cover negative cash balances and receipt of State grant monies. • Total liabilities decreased by$345,465. This decrease is due mainly to decreases in accounts payable and deposits payable balances. • Fund Balance increased by$357,385. Business-type Funds Water/Sewer Fund Pasco's enterprise operations consist of the Water/Sewer Utility Fund. This fund includes water, sewer,process water reuse, stormwater and irrigation operations. The City's water system currently serves approximately 15,600 customers, 14,600 of which reside within City limits and approximately 88% of those are single-family residential customers. The latest water rate increase became effective on January 1, 2004. The sewer system currently serves approximately 13,200 customers, 90% of which are single-family residential customers. Sewer rates were actually decreased by 10% effective on January 1, 2007. • Total assets decreased by$1,487,799. • Total liabilities decreased by$3,334,086 due to payments made on outstanding Long-Term Debt. • Net assets increased by$4,821,885 due to an increase in contributed infrastructure during 2008. 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. • $1,214,000 in expense increases were added to the General Fund to cover: increases in overtime costs for police& fire, outsourced inspection services for building department, legal services, interfund loans to funds that had a negative fund balance and to allow spending of unanticipated revenue streams and their corresponding expenses. • $1,214,000 in unreserved ending fund balance in the General Fund was used to cover the above increases; therefore, there was no increase in the General Fund Budget in 2008. 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 primarily on the basis of pooled cash. All available funds not individually invested are invested as one source leading to higher interest yield than if invested on an individual fund basis. The cash flow needs of the City require some investments to be relatively short term in nature. A smaller portion of idle cash is deposited with the State Treasurer in the Local Government Investment Pool where funds can be readily accessed. A larger portion of the portfolio is invested in longer term U.S. government securities. The market value of the entire investment portfolio on December 31, 2008 was $35,851,421. 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. As of the end of 2008, the City had $242,080,881 invested in a variety of capital assets as illustrated in the following table. Capital assets net of depreciation increased by approx. $18.2 million in 2008. Of this amount, there was a net increase in the governmental activity capital asset expenditures and infrastructure donations or contributed infrastructure of$10.2 million and a net increase of$8.0 million in the business-type activity capital expenditures and infrastructure donations or contributed infrastructure. Table 3 Capital Assets at Year-End (Net of Depreciation) 2008 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECOP JUDGE DEVELOPMENT DIR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER FACILITIES - RECREATION - SERVICES DIVISION MANAGER = MANAGER Financial information from condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Activities Current and other Assets 37.31 $ Capital Assets 97.77 Other Non-Current Assets 0.99 Total Assets 136.07 Long-term Debt 16.90 Other Liabilities 6.12 Total Liabilities 23.02 Net Assets: Invested in Capital, Net of Debt 85.29 Restricted 4.00 Unrestricted 23.75 Total Net Assets 113.04$ Debt Administration At December 31, 2008, the City had a number of debt issues outstanding. These issues include $10,915,000 of general obligation bonds, both voted and non-voted, $16,070,000 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. Standard and Poor's rated the City's most recent water and sewer revenue bonds (2009)AA-. 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 Financial Guaranty Insurance Corporation; the 1999 UTGO Bonds, 2001 Water/Sewer Bonds and 2002 LTGO Bonds are backed by MBIA Insurance Corporation; and the 2005 Water/Sewer Bonds are backed by Financial Security Assurance. 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 from 1 to 3%. The outstanding balance of these four loans totals $2,447,951 at December 31, 2008. The City is also utilizing the State Revolving Loan Fund to help finance the expansion of the sewer treatment plant. The outstanding balance of this loan is $15,607,895. 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, 2008 is $828,216. The City does not have any restrictions, commitments or other limitations that would significantly affect availability of fund resources. See Note 10, 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. 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 'd information, contact the City's Finance Department, 525 N. 3 Avenue, Pasco,Washington 99301. Tree City, USA The City of Pasco is recognized by the Washington State Department of Natural Resources and Commissioner of Public Lands for being a"Tree City,USA". This distinguished honor celebrates the importance of trees in our communities. Trees can provide much needed shade in summer, buffer against high winds, conserve water, generates oxygen and protect the soil from erosion. BASIC FINANCIAL STATEMENTS Government-Wide financial Statements PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES M SERVICES DIVISION MANAGER MANAGER Am Financial information from 2007 financial statem, condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type T Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: Invested in Capital, Net of Debt 85.29 109.74 Restricted 4.00 0.75 Unrestricted 23.75 5.71 Governmental Activities: Business-type To TO Taxes:Propert Ch Net Ne General Government$ Activities: Water tal Pri y Taxes Ines Trans an Asset t 9,595,673$5,645,888$-$-$ 5,990,439 Bu 5,511,426 tment fers ge s As (3,949,785)$-$ 6,103,121 sin m _5,511,426 Earni 612,9 in Begin set Statement of (3,949,785)$(923,853) -11645,830 es ar 5,215,110 ngs 44 Ne ning s Judicial 813,800 1,021,026 s-t Y (612, ActivitiesDecember 1,758,512 Go Property Taxes 986,5 t 100,7 En 207,226 207,226 372,016 ye ve levied for Debt 944) As 09,47 din 31,2008Net Revenue public Safety 18,295,546 1,758,512 32 (19 (Expenses)and y 3,285,728 Sewer Ac rn Service 544,468 425,0 set 5 g g 2,625,708 175,057 tivi -544,468 Total s 111,0 Changes in Net 6,316,067 m 24 AssetsProgram -(15,494,781) 7,032,037-960,513 tie en 1,411 Total 12 87,77 11 559,304 Sales 8 Reve Revenues Primary 1,676,483 s t 9 Use Taxes 556 7 1 3 Government 1,676,483 15 60 1709 nues 63 211,7 04 8,843,067 29,84 Operating Capital 5,815,178 Water 9 3 -8,843,067 469 6 97,24 8 Charges for Grants x(15,494,781) Process Reuse 81 74 8,645,939 Total 1'752 87 6 49 14,730,601 7 5 (187, 4, 182,4 9 and Grants ta ( ) 1,569,048 Occupational Gene 920 Governmental Physical 2,410,929 06 65 ral ) 31 49,17 � Environment 17 $_ Utility Taxes 29,65 61 9Prio 11 Business-Type Totals 841,881 841,881 Reve � 3,531,581 2 29 8,688,698 3,832 28 r 6 Functional Programs 835,882 153,665 Storm 32 4 -8,688,698 nues 27,68 7 Perio e Ex n nses Services 163,285 Water 607,018 3 17 7,842,445 Other 29,22 1 959 5 Contributions 2,532,414 442,173-208,630 g gOg 17 d 5 ( ) 55 g Taxes 4,654,617 0 Adjus 01 Contributions (2,532,414) 43,785 43,785 3, 38 -4,654,617 425,0 Activities Activities (1,393,272) 171,154 Irrigation 25 $ 3,729,218 24 79 tment 7 2008 Transportation 1,014,564 712,551 3, 37 29,65 9 s 4,330,917 -200,423(101,590)55 6 3,832 74 (424, 22 475,958 (101,590)313,970 8 49 27,70 16 663) 9 -13,688,006 Internal Service 33 0j 1,485 0 790,9 24 9,833,047 3 9,833,047 Funds 484,570 4, 17 36 59 (1,572,567) 531,544-238,162 55 5 24 9662 61 Health and 334,525 285,136 4, g 13,31 $ Human 619,661391,544 50 54 1,943 21 Services 56,652 4, (� 1 20 -25,827 7, 79 -(30,825) 7 07 7 (30,825) 4' 8, 24 (20,231) 83 06 6 Economic 81 5) Environment 73 4, 1,198,685 2 50 1,135,440 10 4 -609,697 31 20 546,452 7 546,452 39 (1 2,332,469 2 Culture and 57 Recreation 3 5,982,584 85 Se 445,581 8) Ge e 12,321 120,593 (1 ne ac (5,404,089) 1, ral co (5,404,089) 64 Re m a (5,201,465) 5, ve n i Interest on 83 nu ng Long Term 5) es: 9 Debt 587,421 no --(587,421) tes (587,421) to (639,570) th Total e Pri Governmental be Activities sic m 44,392,859 fin ar 12,185,483 an y 376,490 cia Go 14.418,296 1 ve (17,412,590) sta rn -(17,412,590) to m (21,777,074) rn en en t: ts. PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial statem condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type T Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: Invested in Capital, Net of Debt 85.29 109.74 Restricted 4.00 0.75 Unrestricted 23.75 5.71 Total Net Assets 26 113.04$ 116.20$ ')nn7 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial states condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: Invested in Capital, Net of Debt 85.29 109.74 Restricted 4.00 0.75 PASCO CITY COUNCIL CITY MANAGER EXECUTIVE PERSONNEL MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONO JUDGE DEVELOPMENT DIRCT FINANCIAL INFORMATION SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 20 condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental This Page Intentionally Left Blank PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial stater condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type 30 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR FINANCIAL INFORMATION SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial stater condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 31 City of Pasco, Washington 2008 Comprehensive Annual Financial Report CITY MANAGER EXECUTIVE PERSONNEL MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER it Financial information from 2007 financial statem condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type T Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 32 City of Pasco, Washington 2008 Comprehensive Annual Financial Report Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2008 2008 2007 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/Sewer Water/Sewer Fund Total Total Fund Total Total CASH FLOW FROM OPERATING ACTIVITIES: Receipts from Customers$16,826,992$5,186,441$531,505$16,038,078$4,560,656$490,129 Payments for Maintenance&Ops.-(1,465,135)(257,186)-(1,406,887)(257,681) Payments for Merchandise(654,790)--(368,384)- Payments for Wages(3,076,641)--(2,688,916)- Payments for Operating Expenses(5,278,755)--(3,055,937)- Internal Activities-payments to other funds---- Payments for Taxes(1,903,025)--(1,775,130)- Payments to Employees-(2,628,376)--(2,486,796) Net Cash provided(used)by operating activities 5,913,781 1,092,930 274,319 8,149,711 666,973 232,448 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:- Prior Year Adjustments-(426,290)-551,470 23,291(702,579) Transfers In(Out)(561,244)61,222-(777,075)109,086(88,869) Non-Operating Revenue 928,453--756,696- Net Cash provided from non-capital financial activities 367,209(365,068)-531,091 132,377(791,448) CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Capital Assets(3,685,501)234,525 238,162(8,332,556)382,698 295,906 Principal Paid on Bonds&Loans(3,016,662)--(2,697,663)- Interest Paid on Bonds&Loans(1,377,415)--(1,133,242)- Construction Work in Process(7,800,560)-(4,908,721)- Proceeds of Bonds--835,650- Payments received from Notes and Loans 11,100--1,029,600- Net Cash Used by Capital&Related Financing Activities(15.869.038)234,525 238,162(15.206.932)382,698 295,906 CASH FLOWS FROM INVESTING ACTIVITIES: Interfund Loans-(75,000)(30,000)-(75,000)(30,000)Investment Activities Income 384,439 128,396 51,925 575,390 109,516 59,701 Net Cash Provided from Investing Activities 384,439 53,396 21,925 575,390 34,516 29,701 NON CASH ACTIVITIES: Capital Contributions 2,824,658--6,769,301- Net Increase(Decrease)in Cash and Cash Equivalents(6,378,951)1,015,783 534,406 818,561 1,216,564(233,393) Cash and Cash Equivalents January 1 12.667.775 2,871,535 1,117,403 11.849.213 1,664,990 1,350,796 Cash and Cash Equivalents December 31$6.288.824$3.887.318$1.651.809$12.667.774$2.881.554$1.117.403 See accompanying notes to the basic financial statements. 33 City of Pasco, Washington 2008 Comprehensive Annual Financial Report Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2008 2008 2007 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/Sewer Water/Sewer Fund Total Total Fund Total Total RECONCILATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net Operating Income$1.663.484$636.275$46.974$3.087.512$311.005$162.701 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES Depredation 4,502,037 438,819 223,970 4,535,918 338,132 69,375 Changes in assets and liabilities:(Increase)/Decrease in Customer Receivables 33,958(38,933)(39)(97,229) (38,933)219(Increase)/Decrease in Prepaid Expenses(810)--7,367-(Increase)/Decrease in Inventories 18,669--16,898-(Increase)/Decrease in Grant Receivable 1,172--(1,172)-- Increase/(Decrease)in Customer Deposits 6,277--2,832-Increase/(Decrease)in Accounts Payable(393,055)56,064 3,414 184,482 56,064 153 Increase/(Decrease)in Unclaimed Property 4,094—3,416-Increase/(Decrease)in Due to Other Funds---(1,337)-Increase/(Decrease)in Deferred Revnue 887--887-Increase/(Decrease)in Taxes Payable(40,296) --41,562-Increase/(Decrease)in Compensated Absences(30,410)705-8,166 705 Increase/(Decrease)in Latecomer Payable---(2,108)-Increase/(Decrease)in Advance Minimum Deposits 147,774--362,517- Net Cash Provide by Operating Activities$5.913.781$1.092.930$274.319$8.149.711$666.973$232.448 See accompanying notes to the basic financial statements. 34 Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2008 2008 2007 Fire Pension Agency Fire Pension Agency Fund Funds Fund Funds ASSETS Cash&Cash Equivalents$ 107,328$ 285,357$486,208$ 164,503 Receivables(net of allowances) Interest Receivable 15,597-9,204 Investments, at FMV 3,113,361 -3,818,323 Total Assets 3,236,286 285,357 4,313,735 164,503 LIABILITIES Due to Others-285,357-164,503 Total Liabilities-285,357-164,503 NET ASSETS Held in Trust for Pension Benefits& Other Purposes$3,236,286$-$4,313,735$ PASCO CITY COUNCIL Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the Year Ended December 31, 2008 2008 2007 Fire Pension Fire Pension Fund Fund ADDITIONS Taxes$41,723 $40,123 Investment Earnings Interest 61,372 77,005 Dividends 86,101 212,990 Net Increase(Decrease)in Fair Value of Investments (1,064,918)(66,493) Loan Interest- Total Additions(875,722)263,625 DEDUCTIONS Pension Benefits 106,764 88,581 Medical Premiums 82,963 81,954 Administrative Expenses 12,000 11,100 Total Deductions 201,727 181,635 Change In Net Assets(1,077,449)81,990 Prior Year Adjustments- NET ASSETS-BEGINNING 4,313,735 4,231,745 NET ASSETS-ENDING$ 3,236,286$4,313,735 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 Activities) 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 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 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 pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. 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 fund: 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. The City reports the following major proprietary fund: Water/Sewer fund- includes water, sewer,process water reuse, stormwater 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. 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. 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 Budtet 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 re-appropriated 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. 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 Senior Citizens Center Fund exceeded budgeted appropriations by$611. 5. Deficit Fund Equity The following funds report a deficit fund equity position at December 31, 2008. P ri v KAAK1ArPQ- The ollowing steps have been to cen to e iminate the above deficits: 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 in 2008 as a result of operating transfers and sales revenues. The Trade, Recreation and Agricultural Center continue to operate at a loss. The City and Franklin County share in the losses. The County has oversight authority. Operating transfers will be made to eliminate the deficit. The LID Construction Fund will receive a hinds transfer in 2009 for ULID 143 when bonds are sold to finance this project. E.ASSETS,LIABILITIES AND EQUITIES 1. Cash and Equivalents It is the City's policy to invest all temporary cash surpluses. At December 31, 2008,the treasurer was holding $6,953,922 in short-term residual investments of surplus cash and $28,897,499 in investments longer than one year. Investment amounts maturing within one year are classified on the balance sheet as Cash and Cash Equivalents in various funds. Investments with maturity beyond one year are classified as Investments. The interest earnings on these investments are prorated to the various funds based on cash balances. The amounts reported as cash and cash equivalents also include compensating balances maintained with certain banks in lieu of payment for services rendered. The average compensating balances maintained during 2008 were approximately$2 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. 3.Receivables Taxes receivable consists of property, sales, gambling,utility taxes and related interest and penalties. (See Note 16)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, 2008, $92,470 in special assessments receivable was delinquent. Of this delinquent amount, $53,806 or 58.2% 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 "internal balances." A separate schedule of interfund loans receivable and payable is furnished in Note 15. 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 expenditures 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. The restricted assets of the enterprise fund as of December 31, 2008 are composed of the following: Cash and Investments - Debt Service $ 730,043 Cash Deposits 93,510 Total Restricted Assets $ 823,553 7. Capital Assets and Depreciation- See Note 6. Capital assets, which include property, plant, and equipment and infrastructure assets, are reported in the applicable governmental or business-type columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of 3 years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially expend assets lives are not capitalized. Major outlays for capital assets and improvements are reported as Construction Work in Progress as projects are constructed. Interest incurred during the construction phase of the capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Capital Assets and improvements are capitalized once the project is completed. There were no capitalized interest costs incurred by the City during fiscal year 2008. Property, plant and equipment of the primary government are depreciated using the straight-line method over the following estimated useful lives: 8. Other rover a Investments—See Note 4. 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. Lone-Term Debt—See Note 10. 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. 14. Reclassification of Prior Year in the Statement of Activities Comparative total data for the prior year have been presented in order to provide an understanding of the changes in financial position and operations. Certain amounts presented in prior year data have been reclassified in order to be consistent with current year's presentation. 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. 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. NOTE 3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY There have been no material violations of finance-related legal or contractual provisions. NOTE 4. DEPOSITS AND INVESTMENTS A. DEPOSITS The City's deposits and certificates of deposit are covered by federal depository insurance (FDIC) or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commision (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 PASCO CITY COUNCIL - tement of Net Assets at fair market value. Investments are reported within Cash & Cash Equivalents or Investments of Governmental Activities and within Cash & Cash Equivalents or Investments of Business-type Activities. The fair market value of investments is based upon quoted market prices as of December 31, 2008. As of December 31, 2008,the City had the following investments: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF in 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$35,851,420 in 2008, $1,500,420 is exposed to custodial credit risk because the investments are held by the city's brokerage firm,which 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 2008 tax year. Franklin County, Washington 2008 Property Tax Calendar City of Pasco January 1.........Taxes levied and become an enforceable lien against properties. February 15......Tax bills are mailed. April 30.......... First of two equal installment payments is due. May 31........... Assessed value of property established for next year's levy at 100 percent of market value. October 31....... Second installment is due. Property taxes are recorded as a receivable and revenue when levied. Property taxes collected in advance of the fiscal year to which they apply are recorded as deferred revenue and recognized as revenue of the period to which they apply. No allowance for uncollected taxes is established because delinquent taxes are considered fully collectible. Prior year tax levies were recorded using the same principal, and delinquent taxes are evaluated annually. The City may levy up to $3.60 per $1,000 of assessed valuation for general governmental services, subject to two limitations: Washington State Constitution and Washington State law, RCW 84.55.010 limits the rate. The City's general levy for 2008 was $2.2205 per $1,000 on an assessed valuation of$2,483,166,932 for a total regular levy of$5,513,967. NOTE 6. CAPITAL ASSETS A. Capital Assets Capital assets activity for the year ended December 31, 2008 was as follows: PASCO CITY COUNCI ] Q nn NAC`FR ction in progress 3,347,635 4,564,419 6,925,485 986,569 Total capital assets,not being depreciate , 2 4, 318 6,841,735 Capital assets being depreciated Buildings 32,264,968 446,070 113,076 32,597,962 Improvements other than buildings 8,193,230 1,034,200 138,411 9,089,019 Machinery&Equipment 2,291,657 313,500 128,820 2,476,337 Infrastructure 69,244,519 17,548,043-86,792,562 Equipment rental 4,788,732 476,708-5,265,440 Equipment-Animal control 70,418 21,632 -92,050 Total capital assets being depreciated 116,853,524 19,840,153 380,307 136,313,370 Less accumulated depreciation Buildings 8,182,655 922,677-9,105,332 Improvements other than buildings 1,775,824 567,979 -2,343,803 Machinery&Equipment 465,911 727,301 -1,193,212 Infrastructure 25,292,097 4,319,774 911,401 28,700,470 Equipment rental 2,587,387 424,180-3,011,567 Equipment-Animal control 25,087 14,639-39,726 Total accumulated depreciation 38,328,961 6,976,550 911,401 44,394,110 Total capital assets being depreciated,net 78,524,563 12,863,603(531,094)91,919,260 Governmental activities capital assets,net$87,582,645$ 17,574,574$6,396,224$98,760,995 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities General Government$443,974 Security of Persons & Property 125,123 Physical Environment 50,159 Transportation 5,280,805 Economic Environment 349,325 Culture & Recreation 721,314 Judicial 5,850 Total Depreciation—Governmental Activities$6,976,550 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial staten condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Sup oqt sses afRtially all City of Pasco full-time employees and qualifying part-time employees paji�i��te in one ofi �7 following statewide retirement systems administered by the Washington State Department of Retirement Syagnu,der cost-sharing, multiple-employer public employee defined benefit and dcwd contributiq)24 rMPffr!iMitirfans. The Department of Retirement Systems (DRS), a department wftfi?n the primai6?4 go-vernment_of the State of Washington, issues a publicly available comprehensive annual financial report- (CAFR) that includes financial statements and required supplementary information for each plan. The DRS CAFR may be obtained from the Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA 98504-8380. The following disclosures are made pursuant to GASB Statement 27,Accounting for Pensions by State and Local Government Employers and No. 50, Pension Disclosures, an Amendment of GASB Statements No. 25 and No. 27. 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. 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 irrivocable 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. Notwithstanding, PERS Plan 2 and Plan 3 members may opt out of plan membership if terminally ill,with less than five years to live. 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. PERS Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible for retirement 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 (AFC) per year of service, capped at 60 percent. (The AFC is based on the greatest compensation during any 24 eligible consecutive compensation months.) Plan 1 members who retire 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-ofliving 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 optional COLA amount that provides an automatic annual adjustment based on the Consumer Price Index. The adjustment is capped at three percent annually. To offset the cost of this annual adjustment, the benefit is reduced. PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members may retire at the age of 65 with five years of service with an allowance of two percent of the AFC per year of service. (The AFC is based on the greatest compensation during any eligible consecutive 60 month period.) Plan 2 members who retire prior to age 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(based on the 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 contribution component. The defined benefit portion provides a benefit calculated at one percent of the AFC per year of service. (The AFC 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 they may retire at age 55 with 10 years of service. Plan 3 members who retire 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. Judicial Benefit Multiplier Beginning January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to participate in the Judicial Benefit Multiplier Program (JBM). Justices and judges in PERS Plan 1 and 2 were able to make a one-time irrevocable election to pay increased contributions that would fund a retirement benefit with a 3.5%multiplier. The benefit would be capped at 75% of AFC. Judges in PERS Plan 3 could elect a 1.6% of pay per year of service benefit, capped at 37.5% of average compensation. Members who chose to participate in JBM would: accrue service credit at the higher multiplier beginning with the date of their election, be subject to the benefit cap of 75% of AFC, 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 did not choose to participate would: 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. Newly elected or appointed justices and judges who chose to become PERS members on or after January 1, 2007, or who had not previously opted into PERS membership, were required to participate in the JBM Program. Members required into the JBM program would: 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 1,190 participating employers in PERS. Membership in PERS consisted of the latest actuarial valuation data for the plans of June 30, 2007: PASCO CITY COUNCIL CITY MANAGER 2. Funding Poliy 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 6% for state agencies and local government unit employees, and at 7.5% 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 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%; 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 31,2008, were as follows: Members not participating in JBM: PASCO CITY COUNCIL ry nnnninr_CD *The employer rates do not include the employer administrative expense fee currently set at 0.16%. ** The employer rate for state elected officials is 12.39%for Plan 1 and 8.31%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 5.45%for Plan 2. *****Variable from 5.0%minimum to 15.0%maximum based on rate selected by the PERS 3 member. 51 Members participating in JBM: PASCO CITY COUNCI CITY MANAGER 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 as follows: PA MO C .. CIL 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, firefighters, and as of July 24, 2005, those emergency medical technicians who were given the option and chose LEOFF Plan 2 membership. 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. Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 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. LEOFF Plan 1 members are vested after completion of 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(FAS) is as follows: PASCO CITY COUNCIL CITY MANAGER The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 month's salary within the last 10 years of service. A cost-ofliving allowance is granted(based on the Consumer Price Index). LEOFF Plan 2 members are vested after the completion of 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 two percent of the FAS per year of service. The final average salary is based on the highest consecutive 60 months. Plan 2 who retire prior to the age of 53 receive reduced benefits. Benefits 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 three 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(based on the Consumer Price Index) capped at three percent annually. There are 374 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2007: PASCO CITY COUNCIL CITY MANAG 2. Funding PoliMStarting on July 1,2000, LEOFF Plan 1 employers and employees contribute zero percent as long as the plan remains fully funded. Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plan. LEOFF 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 LEOFF 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 31,2008 were as follows: PASCO CITY COUNCIL CITY MANAGE *The employer rates includes the employer administrative expense fee currently set at 0.16%. **The employer rate for ports and universities is 8.99%. Both the City and the employees made the required contributions. The City's required contributions for the year ended December 31, were as follows: LEOFF Plan 1 LEOFF Plan 2 2008 $ 812 $ 444,557 2007 765 404,634 2006 815 351,698 The City does not have any employees enrolled in the Public Safety Employee's Retirement System (PSERS) Plan 2. C. Firemen's Pension The City administers a closed, small single-employer defined benefit plan called the Firemen's Pension Fund. The system is shown as a trust fund in the financial reports of the City. As of December 31, 2008, 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 September 30, 2005. As of this date,the market value (based on market quotes) of the plan assets was $3,920,949 and the present value of future benefits was $2,820,461. The actuarial computation was performed using the entry age normal cost method. Under this method the projected benefits are allocated on a level basis as a percentage of salary over the earnings of each individual between entry age and assumed exit age. The actuarial accrued liability is amortized as a level dollar amount over a closed 30-year period beginning September 30, 2005. The actuarial assumptions used in this valuation are as follows: Investment Return—6.25%per year net of investment and administrative expenses; Consumer Price Index Increases—3 %per year; Salary Increases—5%per year in each member's rank at retirement; Medical Cost Inflation—5.75%per year; Pre-retirement decrements—No termination, death disablement, or mortality rates are assumed for active employees; Retirement—Active employees are assumed to retire at the later of age 50 or 25 years of service; Post retirement mortality—RP-2000 male and female mortality rates; and Family Composition— all members are assumed to be married with no children eligible for benefits. Wives are assumed to be three years younger than their husbands. Surviving spouses are assumed not to remarry. The following 10-year table of historical trend information shows the system's progress in accumulating sufficient assets to pay benefits when due: CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR FINANCIAL N completed in 2005. The Fire Pension Fund has no Schedule of Contributions for 2008. The liabilities for future fund benefits are less than the market value of fund assets; consequently,no City contributions are required. PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF The following is the three-year historical data of Revenues and Expenditures. PASCO CITY COUNCIL CITY MANAGER nNNF EXECUTIVE 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 129 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 $4 million per occurrence in the self insured layer, and $16 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 $20 million per occurrence subject to aggregate sub-limits in the excess layers. The Board of Directors determines the limits and terms of coverage annually. 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, Benefits Management, Inc. processes all claims for reimbursement. The third party administrator provides utilization management services and requires pre-authorization for all non-emergency hospital confinements. 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 $70,000 per individual or$2,789,000 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. NOTE 10.LONGTERM 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(currently and in prior years) to advance refund several general obligation and revenue bonds. General obligation bonds have been issued for both general government and business-type activities and are being repaid 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 the TRAC Facility, a fire truck,Animal Control facilities and Police equipment. 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: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF The revenue bonds currently outstanding are as follows: 7=RWw CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT all, COMMUNITY& ECONOMIC II Int-P nF\/FI nPNAFNT niRC'TnR Revenue bond debt service requirements to maturity are as follows: Loan and Note obligations currently outstanding are as follows: � -k I,, - , -, f -, I., ��an "",1 1 —Pn ll,,:�;,-,u�, L---,I I PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR is to maturity are as folio PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF KAl 1AIInIE)AI l�nl In: issue costs are record __ 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, 2008, the City has $312,275 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 $730,043 in sinking funds and reserves as required by bond indentures. B. Refunded Debt The City did not issue any refunded debt during 2008. NOTE 11.LEASES The City does not currently have any capital or operating leases. NOTE 12. CHANGES IN LONG-TERM LIABILITIES During the year ended December 31, 2008, the following changes occurred in long-term liabilities: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER rnmental an lities for them are included as part of the above totals under their respective activity. state: the above amounts. Also, for the governmental activities, claims and judgments and compensated absences are generally liquidated by the general fund. NOTE 13. CONTINGENCIES AND LITIGATION The City has recorded in its financial statements all material liabilities, including applicable estimates for situations that are not yet resolved but where, based on available information, management believes it is probable that the City will have to make payment. In the opinion of management, the City's insurance policies and self-insurance reserves are adequate to pay all known or pending claims. As discussed in Note 10,the City is contingently liable for repayment of refunded debt. The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantor or representative. Such audits could result in 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 $4,004,503 of restricted net assets, of which $4,004,503 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 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, 2008 were as follows: Due From PASCO CITY C(-�l CITY MANAGER PERSONNEL EXECUTIVE liauslcrs iuLciiuuu Hails ICis at Decemb r-1 1, wva were as follows: ERSONNE EXECUTIVE 1131%.113 a1%.1 u ing operati uj 3u%.,, a3 auivui , '�i a�uvttles, 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 at December 31, 2008 were as follows: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMN JUDGE DEVE Special ustomer Accounts receiva e a year enct 1jecem er Of this amount represents delinquent Special Assessments receivable. B.Payables at December 31, 2008,were as follows: PASCO CITY COUN CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMN JUDGE DEVE INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER NOTE it"A: Financial inf< 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 sheriffs 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 BIPIN 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 2008 for these transactions was $126,785. The City of Pasco's equity interest in BI-PIN was $243,694 on December 31, 2008, 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. B.Emergency Medical Services The Emergency Medical Services (EMS)joint venture was dissolved in the fall of 2007, at which time the net assets were distributed based on the direction of the EMS Administrative Board. In conjunction with the dissolution of EMS, the City of Pasco entered into a series of Interlocal Agreements with each participating agency to provide oversight for the administrative clerical support for the emergency medical services Medical Program Director(MPD) for Benton and Franklin Counties. C. Metro Drug Forfeiture Fund The Metropolitan Controlled Substance Enforcement Group (Metro) was established prior to 1987, when six participating municipal corporations entered into an Interlocal Agreement. These entities include the cities of Kennewick, Pasco, Richland, and West Richland, and Benton and Franklin Counties. Metro was established to account for the proceeds of forfeitures, federal grants, and court ordered contributions, and to facilitate the disbursement of those proceeds for the purpose of drug enforcement and investigations. Metro is served by an Executive Committee composed of the City Manager, or designee, of each of the cities and a member from each of the Boards of County Commissioners of Benton and Franklin Counties. In addition, a Governing Board, consisting of the Police Chiefs from each of the cities and the Sheriffs and Prosecuting Attorneys from the two counties, administers daily activity. Effective January 1, 1990, the City of Pasco assumed responsibility for the operation of Metro. As the Operating Jurisdiction, the City provides all necessary support services for the operation of Metro such as accounting, legal services and risk management. The City of Pasco's equity interest in Metro was $34,535 on June 30, 2008,which is reported as an investment in joint ventures in the government-wide statement of net assets. The change inequity 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. th Complete financial statements for TRAC may be obtained at Franklin County, 1016 N. 4 Avenue, Pasco, Washington. For calendar year 2008, the City of Pasco paid Franklin County $169,231 in operating expenses and $102,990 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 Plan Description As required by the Revised Code of Washington(RCW) Chapter 41.26, the City provides lifetime medical care for members of the Law Enforcement Officers and Firefighters (LEOFF) retirement system hired before October 1, 1977 under a defined benefit healthcare plan administered by the City. The members necessary hospital, medical, and nursing care expenses not payable by worker's compensation, social security, insurance provided by another employer, or other pension plan, or any other similar source are covered. Most medical coverage for eligible retirees is provided by City's employee medical insurance program. Under authorization of the LEOFF Disability Board, direct payment is made for other retiree medical expenses not covered by standard medical plan benefit provisions. Financial reporting for the LEOFF retiree healthcare plan is included in the City's Comprehensive Annual Financial Report. Funding Policy Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by the RCW. The City's funding policy is based upon pay-as-you-go financing requirements. Annual OPEB Costs and Net OPEB Obligation The City's annual Other Post Employment Benefits(OPEB) cost is calculated based upon the annual required contribution(ARC), an amount actuarially determined in accordance with the parameters of Governmental Accounting Standards Board(GASB) Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal costs each year and amortize any unfunded actuarial liabilities over a period of thirty years. This is the City's first year of implementation for GASB Statement 45. The GASB statement allows entities with fewer than 100 retired LEOFF members the option to either hire an actuary to perform a valuation of the plan, or, do the valuation in-house. The Office of the State Actuary for Washington State has provided a tool to do the in-house evaluation. The City of Pasco has a total of 43 LEOFF plan 1 members. Thirty-seven of those members are retired and 6 are still active employees. Seven of those 37 retired members are a part of the Old Firemen's Pension Plan and are fully funded through the Old Fire Pension Fund. Based on the in-house evaluation, the Actuarial Accrued Liability for the Fire Pension Fund is $1,735,160. The Fund also supplements the LEOFF Retirement System retirement payments. As shown in note 7, the total amount needed to fund both medical insurance and future pension requirements is $3,035,160. As of December 31, 2008,the fund had assets of$3,236,286. Performing the valuation for the remaining 30 members, it is determined the Unfunded Actuarial Accrued Liability (UAAL) is $9,942,533. This amount can be funded over the next 30 years. As mentioned previously, the City pays the medical premiums on an annual basis. Dividing the UAAL by 30 years equals $331,418. During 2008, The City made payments totaling $349,680 for postemployment health care in the General Fund for those members. The City uses the alternative measurement method permitted under GASB Statement No. 45. A single retirement age of 56.22 was assumed for all active members for the purpose of determining the actuarial accrued liability. Termination and mortality rates were assumed to follow the LEOFF 1 termination and mortality rates used in the September 30, 2006 actuarial valuation report issued by the office of the State Actuary (OSA). Healthcare costs and trends were determined by Milliman and used by OSA in the state-wide LEOFF 1 medical study performed in 2007. The results were based on grouped data with 4 active groupings and 4 inactive groupings. The actuarial cost method used to determine the actuarial accrued liability was Projected Unit Credit. These assumptions are individually and collectively reasonable for the purpose of this valuation. 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. Other 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 parry 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 unused accrued Vacation balance and unused accrued Compensation Time balance. Unused Sick time balance is paid out at the rate of 25%up to a maximum of 720 hours. 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. Accrued employee leave payable, or Compensated Absences, is 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: An adjustment of$425,000 was made to the Medical Dental Fund to increase Claims Incurred But Not Recorded and for$1,291 for a refund check for a prior period. An adjustment of$792,603 was made in the Water/Sewer Fund to correct assets and accumulated depreciation and$1,644 to adjust debt service. 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. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial stater condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 70 PASCO CITY COUNCIL CITY MANAGER EXECUTIVE PERSONNEL MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES i6LSERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial state: condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 71 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER AL Financial information from 2007 financial states condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial statem condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type T Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER it MANAGER Financial information from 2007 financial statem condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type T Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER it MANAGER Financial information from 2007 financial stater condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& E JUDGE DEVELOPMENT INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER 9 Financial information fr condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Activities Current and other Assets 37.31 Capital Assets 97.7 Other Non-Current Assets 0.9 Total Assets 136.0 Long-term Debt 16.9 Other Liabilities 6.1 Total Liabilities 23.0 Net Assets: Invested in Capital,Net of Debt 85.2 n n PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER it MANAGER Financial information from 2007 financial states condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY JUDGE DEVELOPME INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER J1 MANAGER Financial informatio condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Activities Current and other Assets 3 Capital Assets Other Non-Current Assets Total kgtjbtwcompanying notes to the basic financial statements. Long-term Debt Other Liabilities Total Liabilities PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER it MANAGER Financial information from 2007 financial states condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT i JUDGE INFORMATION FINANCIAL SERVICES SERVICES MANAGEF MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financi; condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Activities Current and other Assets Capital Assets Other Non-Current Assets Total Assets Long-term Debt Other Liabilities Total Liabilities Net Assets: PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR FINANCIAL INFORMATION SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial stater condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: Invested in Capital, Net of Debt 85.29 109.74 Restricted 4.00 0.75 Unrestricted 23.75 5.71 Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2008 Special Revenue Funds Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2008 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY & ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER jILL MANAGER Financial information from 2007 financial stater. condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type l Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 -r-4-1 1:..L.ili4:.... 712!17 Or-A4 Special Revenue Funds PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial statem condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type T Activities Activities Fundr*lie bt4pA&&,%842$6,696$5,967$10,494$24,208 See accompanying notes to the basic financial statemengq..31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Tntal ARSAtR 13R n7 1 5?R7 Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2008 Special Revenue Funds PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR FINANCIAL INFORMATION SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial staten condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital A%%La,Wompanying notes to the basic financial statements. 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 1­_f­rlch# 1 R Qr) 11 Jd Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2008 Special Revenue Funds 194 195 Indust.Devel.Stadium/REVENUES&Infrastructure Conv.Center TOTALS Taxes$-$216,692$2,202,239 Licenses&Permits--250,739 Intergovernmental Revenue 219,749 120,593 3,212,074 Charges for Services--2,014,838 Fines&Forfeitures--36,271 Investment Income 23,867 337 338,745 Miscellaneous Revenue-11,962 445,962 Total Revenues 243,616 349,584 8,500,868 EXPENDITURES Current: General Government-- Judicial- Public Safety--2,089,859 Physical Environment--256,381 Transportation--1,536,157 Health and Human Services-42,169 Economic Environment 40,313-344,936 Culture and Recreation-109,458 742,604 Capital Outlay 142,913-3,686,858 Debt Service Principal-95,000 169,483 Interest-30,125 62,978 Total Expenditures 183,226 234,583 8,931,425 Excess of Revenues Over(Under)Expenditures 60,390 115,001 (430,557) OTHER FINANCING SOURCES(USES) Insurance Recoveries--75 Operating Transfers-(In)--3,899,925 Operating Transfers-(Out)-(139,219)(1,820,170) Total Other Financing Sources(Uses)-(139,219)2,079,830 Net Change in Fund Balances 60,390(24,218)1,649,273 Prior Year Adjustments--(40,596) Fund Balance Beginning 574,988 50,860 8,264,014 Fund Balance,Ending$635,378$26,642$9,872,691 See accompanying notes to the basic financial statements. Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2008 Debt Service Funds Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2008 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial states condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Capital Projects Funds PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITI JUDGE DEVELOPM INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER FACILITIES RECREATION RLSERVICES DIVISION MANAGER MANAGER A i — Financial informatil condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Activities Currentgwch ffAa%i notes to the basic financial statements. Capital Assets Other Non-Current Assets Total Assets Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2008 Permanent Fund PASCO CITY COUNCIL 7Y MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES it SERVICES AL DIVISION MANAGER MANAGER Financial information from 2007 financial states condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Combining Statement of Revenues,Expenditures,and Changes in Fund Balances PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial stater condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 See accompanying notes to the basic financial statements. Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 PASCO CITY COUNCIL CITY MANAGER EXECUTIVE PERSONNEL MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER it Financial information from 2007 financial state condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 90 PASCO CITY COUNCIL CITY MANAGER EXECUTIVE PERSONNEL MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONC JUDGE DEVELOPMENT DIRC- INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2( condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Activities Current and other Assets 37.31 $ Capital Assets 97.77 Other Non-Current Assets 0.99 Total Assets 136.07 Long-term Debt 16.90 Other Liabilities 6.12 Total Liabilities 23.02 City of Pasco, Washington 2008 Comprehensive Annual Financial Report CITY MANAGER EXECUTIVE PERSONNEL MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER it Financial information from 2007 financial state condensed Statement of Net Assets. presented for comparison purposes. 92 Combining Statement of Revenues,Expenditures,and Changes in Fund Net Assets Internal Services Fund For the Year Ended December 31,2008 Business-type Activities Internal Service Funds PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR FINANCIAL INFORMATION SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financi condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-tyr City of Pasco, Washington 2008 Comprehensive Annual Financial Report CITY MANAGER EXECUTIVE PERSONNEL MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER it Financial information from 2007 financial state condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 94 PASCO CITY COUNCIL CITY MANAGER EXECUTIVE PERSONNEL MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECON JUDGE DEVELOPMENT DIRC INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER FACILITIES RECREATION SERVICES DIVISION MANAGER MANAGER Financial information from 200' condensed Statement of Net Assets. presented for comparison purposes. Table 1 B Governmental Activities Current and other Assets 37.31 $ Capital Assets 97.77 Other Non-Current Assets 0.99 Total Assets 136.07 Long-term Debt 16.90 Other Liabilities 6.12 Total Liabilities 23.02 Net Assets: Invested in Capital, Net of Debt 85.29 Restricted 4.00 Unrestricted 23.75 Total Net Assets 113.04$ MCAG NO. 0292 SCHEDULE 8 - REAL AND PERSONAL PROPERTY TAXES (ALL TAX-SUPPORTED FUNDS) For the Year Ended December 31, 2008 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MCAG NO. 0292 SCHEDULE 9 - LONG-TERM DEBT - L.I.D. ASSESSMENTS Year Ended December 31,2008 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER FACILITIES RECREATION SERVICES DIVISION MANAGER PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY & ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER 0M I Financial information from 2007 financial states condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: Invested in Capital, Net of Debt 85.29 109.74 Restricted 4.00 0.75 Unrestricted 23.75 5.71 99 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& I JUDGE DEVELOPMENT INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information f condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Activities Current and other Assets 37.3' Capital Assets 97. Other Non-Current Assets 0. Total Assets 136. Long-term Debt 16. Other Liabilities 6. 100 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 finan condensed Statement of Net Assets. presented for comparison purposes. Table 1 Business-i Governmental Activities Activ Current and other Assets 37.31 $ 9.' Capital Assets 97.77 14( Other Non-Current Assets 0.99 Total Assets 136.07 15: Long-term Debt 16.90 3' Other Liabilities 6.12 ! Total Liabilities 23.02 3( Net Assets: Invested in Capital, Net of Debt 85.29 10f Restricted 4.00 Unrestricted 23.75 Total Net Assets 113.04$ 116.: 2 Governmental Business-i Activities Activ Current and other Assets 33.20$ 15.! MCAG NO. 0292 SCHEDULE 12-OPERATION OF INVESTMENTS-ALL FUNDS For The Year Ended December 31,2008 INVESTMENT INVESTMENTS INVESTMENT FUND FUND BALANCE (AT COSTS) BALANCE NO. DESCRIPTION 1/1/2008 ACQUIRED LIQUIDATED 12/31/2008 620 Fire Pension $3,818,322$ 1,259,022$ 1,963,982$3,113,362 650 Surplus Cash 36,491,743 18,929,064 22,682,748 32,738,059 TOTAL$40,310,065$20,188,086$24,646,730$35,851,421 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financiz condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-typf Activities Activitie: Current and other Assets 37.31 $ 9.19 Capital Assets 97.77 140.2, Other Non-Current Assets 0.99 3.2' Total Assets 136.07 152.6, Long-term Debt 16.90 31.2 Other Liabilities 6.12 5.2� Total Liabilities 23.02 36.41 Net Assets: Invested in Capital, Net of Debt 85.29 109.7 Restricted 4.00 0.7! Unrestricted 23.75 5.7' Total Net Assets 113.04$ 116.20 200, Governmental Business-typ( Activities Activitie: MCAG NO.0292 SCHEDULE 16-SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2008 PASCO CITY COUNCIL PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial stater condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type 105 MCAG NO.0292 SCHEDULE 16-SCHEDULE OF STATE AND LOCAL FINANCIAL ASSISTANCE For the Year Ended December 31,2008 PASCO CITY COUNCIL PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER MM Financial information from 2007 financial state condensed Statement of Net Assets. 106 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SCHEDULE 16) 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 a modified accrual basis of accounting in all of the related Governmental funds and full accrual in the Proprietary funds. NOTE 2 - PROGRAM COSTS The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the City's portion, may be more than shown. NOTE 3 - REVOLVING LOAN - POGRAM 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 2008 for the rehab loan program. The amount of principal and interest received in loan repayments for the year was $617.72. 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. NOTE 4 - PRIOR YEAR EXPENDITURE The amount shown under the US Department of Transportation - Highway Planning and Construction - for $399,456 was actually expended in 2007 and should have been included on the 2007 Schedule 16. It was not, however, reported on the 2007 Schedule and is included on this year's schedule. MCAG NO. 0292 SCHEDULE 19-LABOR RELATIONS CONSULTANTS For the Year Ended December 31, 2008 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: $35,524.82 Terms And Consitions, As Applicable, Including: Rates (E.G., Hourly, Etc.): $100 per hour Maximum Compensation Allowed: Duration Of Services: Various throughout the year. Services Provided: Union Bargaining Assistance Certified Correct this 26th day of May, 2009 to the best of my knowledge and belief: Signature James W. Chase Financial Services Manager STATISTICAL SECTION This statistical section presents detailed information, typically in ten-year trends, which will assist users in utilizing the basic financial statements, notes to basic financial statements, and required supplementary information to assess the economical condition of the City of Pasco. PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER 110 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER j t Financial information from 2007 financial state condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 111 Fiscal Year PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial state condensed Statement of Net Assets. presented for comparison purposes. 112 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial stater condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER kL Financial information from 2007 financial st condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities This Page Intentionally Left Blank PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial states condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 nior n—t- 2004 2003 2002 2001 2000 1999 $2.6617$2.6839$3.0634$3.0434$3.0710$2.4963 0.3452 0.3812 0.4788 0.5017 0.5479 0.4456 0.1455 0.1331 0.1203 0.0909 0.1143 3.1524 3.1982 3.6625 3.6360 3.7332 2.9419 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOF INFORMATION FINANCIAL SERVICES SERVICES MANAGER PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER -_ MANAGER Financial information from 2007 financial stat condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: Invested in Capital, Net of Debt 85.29 109.74 Restricted 4.00 0.75 Unrestricted 23.75 5.71 Total Net Assets 113.04$ 116.20$ 2007 Governmental Business-type Activities Activities Current and other Assets 33.20$ 15.50$ PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR FINANCIAL INFORMATION SERVICES SERVICES MANAGER MANAGER FACILITIES RECREATION SERVICES DIVISION MANAGER MANAGER Financial information from 2007 fit condensed Statement of Net Assets. presented for comparison purposes. Table 1 Busine Governmental Activities F Current and other Assets 37.31 $ Capital Assets 97.77 Other Non-Current Assets 0.99 Total Assets 136.07 Long-term Debt 16.90 Other Liabilities 6.12 Total Liabilities 23.02 Net Assets: Invested in Capital, Net of Debt 85.29 Restricted 4.00 Unrestricted 23.75 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& JUDGE DEVELOPM INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER FACILITIES RECREATION SERVICES DIVISION MANAGER PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER 122 RATIOS OF OUTSTANDING DEBT BY TYPE LAST FIVE FISCAL YEARS TABLE 10 (dollars in thousands, except per capita) Governmental 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 2008 10,915 120 16,245 18,056 45,336 867 7 CUMCOU ., RATIOS OF GENERAL BONDED DEBT OUTSTANDING AND BONDED DEBT PER CAPITA Last Ten Fiscal Years PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES IL SERVICES DIVISION MANAGER MANAGER found in the note ) State of Washington Office of Financial Management (2)Franklin County Assesor's Office PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER = Financial information from 2007 financial states condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: Invested in Capital, Net of Debt 85.29 109.74 Restricted 4.00 0.75 Unrestricted 23.75 5.71 Total Net Assets 113.04$ 116.20$ 2007 Governmental Business-type Activities Activities PLEDGED-REVENUE COVERAGE PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER SPECIAL ASSESSMENTS COLLECTIONS PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial statem condensed Statement of Net Assets. PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER 91 Financial information from 2007 financial stater. condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type l A rtivitioc Arfiwifio 128 PASCO CITY COUNCIL CITY MANAGER PERSONNEL EXECUTIVE MANAGER SUPPORT STAFF MUNICIPAL COURT COMMUNITY& ECONOMIC JUDGE DEVELOPMENT DIRCTOR FINANCIAL INFORMATION SERVICES SERVICES MANAGER MANAGER FACILITIES RECREATION ilk SERVICES DIVISION MANAGER MANAGER Financial information from 2007 financial s condensed Statement of Net Assets. presented for comparison purposes. Table 1 Governmental Business-type Activities Activities Current and other Assets 37.31 $ 9.19$ Capital Assets 97.77 140.27 Other Non-Current Assets 0.99 3.21 Total Assets 136.07 152.67 Long-term Debt 16.90 31.24 Other Liabilities 6.12 5.24 Total Liabilities 23.02 36.48 Net Assets: Invested in Capital, Net of Debt 85.29 109.74