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HomeMy WebLinkAbout2009 ACFR COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF PASCO, WASHINGTON FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009 CITY OF L qqqppl I Prepared by Administrative and Community Services Department Rick G. Terway, Director Finance Division Stephanie Brock, Interim Financial Services Manager City of Pasco, `tiVashington 200.9 Comprehensive .annual Tinancial Report 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.................................... 26 Statement of Activities—Governmental and Business-Type Activities...................................... 27 Fund Financial Statements Balance Sheet—Governmental Funds......................................................................................... 28 Statement of Revenues, Expenses and Changes in Fund Balances—Governmental Funds...... 29 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances to the Statement of Activities—Governmental Funds ............................ 30 Statement of Net Assets—Proprietary Fund ............................................................................... 31 Statement of Revenues, Expenses and Changes in Net Assets—Proprietary Funds .............. 33 Statement of Revenues, Expenses and Changes in Net Assets Detail .............................. 34 Statement of Cash Flows—Proprietary Fund .......................................................... 35 Statement of Net Assets—Fiduciary Funds ............................................................ 37 Statement of Changes in Fiduciary Net Assets ........................................................ 38 Notes to Financial Statements ............................................................................ 39 Required Supplemental Information Combining and Individual Fund Statements and Schedules Schedule of Operations—Budget to Actual—General Fund ........................................ 76 Schedule of Operations—Budget to Actual—Water/Sewer Fund ................................... 77 Combining Balance Sheet—Non-major Governmental Funds ...................................... 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Non-major Governmental Funds......................................................... 87 Combining Statement of Revenues, Expenses and Changes in Fund Balances—Other Governmental Funds................................................................ 95 Statement of Revenues, Expenses and Changes in Fund Balances - Budget to Actual Comparison—Non-major Special Revenue Governmental Funds .......................... 96 Combining Statement of Net Assets—Internal Service Funds....................................... 118 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets—Internal Service Funds......................................................................... 120 Combining Statement of Cash Flows—Internal Service Funds.................................................. 122 Cit3i of Pasco, Washington 2009 Comprehensive .annual T nancial Report TABLE OF CONTENTS (cont.) Additional Information Schedule 8 -Real and Personal Property Taxes ............................................................. 125 Schedule 9 -Long-Term Debt- L.I.D. Assessments & General Obligations and Revenue ........... 127 Schedule 10 -Computation of Legal Debt Margin.......................................................... 130 Schedule 12 -Operation of Investments - All Funds ....................................................... 131 Schedule 13 -Cash and Investments .......................................................................... 132 Schedule 14 -Short Term Interest Bearing Debt............................................................ 132 Schedule 15 -Contributions for Employee Benefits ........................................................ 132 Schedule 16 -Expenditures of Federal Awards & State and Local Financial Assistance.............. 133 Notes to Schedule of Expenditures of Federal Awards & State and Local Financial Assistance..... 135 Schedule 19 -Labor Relations Consultants.................................................................. 136 STATISTICAL SECTION Table 1 Net Assets by Component ............................................................................................... 139 Table 2 Changes in Net Assets ..................................................................................................... 140 Table 3 Fund Balances, Governmental Funds.............................................................................. 142 Table 4 Changes in Fund Balances, Governmental Funds ........................................................... 143 Table 5 Assessed and Actual Value of Taxable Property............................................................. 144 Table 6 Direct and Overlapping Property Tax Rates.................................................................... 145 Table 7 Property Tax Levies and Collections............................................................................... 146 Table 8 Top 10 Property Tax Payers............................................................................................. 147 Table 9 Top 10 Industries Generating Sales Taxes....................................................................... 147 Table 10 Ratios of Outstanding Debt by Type ............................................................................... 148 Table 11 Ratio of General Bonded Debt Outstanding.................................................................... 149 Table 12 Computation of Legal Debt Margin................................................................................. 150 Table 13 Pledged Revenue Coverage ............................................................................................. 151 Table 14 Special Assessments Collections..................................................................................... 152 Table 15 Demographic Statistics .................................................................................................... 153 Table 16 Construction, Bank Deposits and Property Value ........................................................... 154 Acknowledgements ............................................................................................. 155 City of Pasco, 'Washington 20o9 Comprehensive AnnuaCFinancia.CReport DATE TO BE ADDED 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, 2009. The report was prepared by the Administrative and Community Services Department, which assumes full responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. This CAFR has been prepared to comply with the current standards for governmental accounting set forth by the Governmental Accounting Standards Board (GASB) and its predecessor, the National Council on Governmental Accounting (NCGA), the recognized authorities on generally accepted accounting principles applicable to governmental accounting. THE REPORT FORMAT The CAFR is presented in three sections: introduction, financial, and statistical. 1. Introductory Section - This section introduces the reader to the report, and includes the transmittal letter, the City Organization Chart and a list of City officials. 2. Financial Section—This section includes the Management Discussion and Analysis, Government-wide Financial Statements, Fund Financial Statements,Notes to the Financial Statements and Other Required Supplemental Information. 3. Statistical Section — This section presents some non-accounting data, with comparisons covering more than two fiscal years, and is designed to reflect social and economic data, financial trends and fiscal capacity of the City. Although this section contains substantial financial information, these tables may differ from the financial statements. This report includes all funds and agencies that are controlled by, or dependent on, the city's administrative and legislative authority. 1 City of Pasco, 'Washing ton 200.9 Comprehensive AnnuafTinanciaCAeport 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 34 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 2009 Tri-Cities Metropolitan Area population was approximately 235,700 and Pasco's estimated population was 58,647. This represents an 83% 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. 2 City of Pasco, 'Washington 2000 Comprehensive AnnuaCFinanciaCReport 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 known 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 fresh potato products 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. In 2009, Syngenta completed construction of a $42 million seed processing facility to serve its global markets. The other major food processor in the area, Lamb Weston, operates a French fry processing plant just north of the City limits employing about 700 workers. 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 region's only International airport and train and bus depots. 3 City of Pasco, 'Washington 200.9 Comprehensive AnnuaCTinanciaCReport 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 2009, 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 Interstate I-182 and Road 68 area. Over the past 5 years, Wal-Mart opened a super center store; Lowe's opened a home improvement store; and a 12-screen theater complex 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 2009, the Pasco School District completed construction of the 341,000 square foot Chiawana High School, the second high school for the community. The total contract amount was $72 million with completion on time to start school in the fall of 2009. In 2009, the City issued a total of 1,849 building permits representing over $162 million in construction costs. Of the total permits, 467 were for new single-family residences and equates to $96 million in assessed valuation. The average value of a new home in Pasco was just under $200,000 in 2009. 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. 4 City of Pasco, 'Washington 200.9 Comprehensive AnnuafTinanciaCAeport 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. Respect su mi Clary rutchfeld Rick Terway, Director City anager Administrative and Community Services 5 City of Pasco, 'Washington 2009 Comprehensive AnnuafTinanciaCAeport DIRECTORY OF CITY OFFICIALS As of December 31, 2009 LENGTH OF TERM ELECTED OFFICIALS SERVICE EXPIRES MAYOR Joyce Olson 3 12/31/09 COUNCILMEMBERS Rebecca M. Francik 12 12/31/11 Michael Garrison 21 12/31/09 Robert Hoffman 4 12/31/09 Tom Larsen 8 12/31/09 Matt Watkins, Mayor Pro-Tem 5 12/31/11 Al Yenney 2 12/31/11 LENGTH IN YEARS OF ADMINISTRATIVE OFFICIALS POSITION SERVICE CITY MANAGER Gary D. Crutchfield 25 31 DEPUTY CITY MANAGER Stanley R. Strebel 6mo 11 PUBLIC WORKS DIRECTOR Robert J. Alberts 15 15 ADMISTRATIVE & COMMUNITYSERVICES DIRECTOR Richard G. Terway 6mo 6mo COMMUNITY DEVELOPMENT DIRECTOR Rick White 2 2 FIRE CHIEF Robert W. Gear 1 1 POLICE CHIEF Denis W. Austin 14 14 MUNICIPAL COURT JUDGE Mary B. Ramirez 23 23 6 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCReport MANAGEMENT TEAM As of December 31, 2009 City Manager Gary Crutchfield, City Manager Stanley R. Strebel, Deputy City Manager Lynne Jackson, Personnel Manager Administrative and Community Services Richard G. Terway, Director Stephanie Brock, Interim Financial Services Manager Sarita Cooper, Customer Service/Utility Billing Supervisor Jesse Rice, Information Services Manager Carleen Hanscom, Recreation Services Manager Dan Dotta, Facilities Manager Community Development Rick White, Director Michel Nickolds, Inspection Services Manager Fire Robert W. Gear, 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 7 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCReport 2009 ORGANIZATIONAL CHART PASCO CITY COUNCIL CITY MANAGER DEPUTY CITY MANAGER COMMUNICATION HUMAN RESOURCE EXECUTIVE SUPPORT STAFF SPECIALIST MANAGER MUNICIPAL COURT JUDGE COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR POLICE CHIEF FIRE CHIEF PUBLIC WORKS/ENGINEERING DIRECTOR ADMINISTRATIVE & COMMUNITY SERVICES DIRECTOR WATER/WW UTILITY/STREET MUNICIPAL TREATMENT PLANT MAINTENANCE FIELD CITY CLERK PROSECUTING DIVISION MANAGER DIVISION MANAGER ATTORNEY INFORMATION FINANCIAL SERVICES SERVICES MANAGER MANAGER RECREATION FACILITIES SERVICES DIVISION MANAGER MANAGER 8 City of Pasco, tiVashington 2009 Comprehensive AnnualginanciaCPxport Independent Auditor's Report on Financial Statements City of Pasco Franklin County January 1, 2009 through December 31, 2009 Mayor and City Council City of Pasco Pasco, Washington TO BE INSERTED 9 City of Pasco, -Washington 2009 Comprehensive AnnualginancialR.eport BRIAN SONNTAG, CGFM STATE AUDITOR September 15, 2009 Washington State Auditor's Office 10 City of Pasco, Uashington 20 0g Comprehensive AnnuaCTinanciaCReport 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)provides an overview of the City's financial activities for the fiscal year ended December 31, 2009. 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 modified 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. 11 City of Pasco, 'WashiAgton 2009 Comprehensive AnnuafTinanciaCAeport 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, 2009 ended with an Unrestricted Net Asset Balance of $24,005,696 in Governmental Activities. These monies are intended to provide a cushion against significant downturns in revenues and to maintain sufficient working capital and cash flows to meet daily financial needs. Other reserves have been designated by management to address annual budget amendments, furniture and equipment replacement, major building repairs, and future facilities. • Also shown on the Statement of Net Assets is an Unrestricted Net Asset Balance of $12,877,485 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: a. $10,580983 for General Government purposes—Administration, Finance, City Council, and Facilities; b. $922,376 for Judicial services—Municipal Courts; c. $18,742,769 for Security of Persons and Property—Police, Fire, Probation Services, Violations, and Protective Inspections; d. $3,050,013 for Physical Environment—Engineering; e. $1,384,931 for Economic Environment—Community Development; f. $6,211,790 for Cultural & Recreation—Parks & Recreation; g. $5,137,163 for Transportation— Streets Maintenance & Improvements, Multi-Model Facility. h. $58,517 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 12 City of Pasco, Uashington 2000 Comprehensive AnnuaCginanciaCReport 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. As with most cities, the City of Pasco at year end 2009 was on the verge of recovery from the recession of 2006/2008. Although gains in operating revenues were minimal, total net asset increases were considerable. The increase totaled $23,110,081. Of this increase $11,880,508 was in governmental activities and $11,229,573 was in business-type activities. For the most part the increase was from an increase in infrastructure, buildings, streets, land improvements, machinery and equipment. 13 City of Pasco, 'Washington 200.9 Comprehensive AnnuaCTinanciaCReport 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 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. The City uses 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. 14 City of Pasco, -Washington 2009 Comprehensive AnnualginancialR.eport THE CITY AS A WHOLE Statement of Net Assets The City's combined net assets for fiscal year 2009 were $252,353,597. The following table reflects the condensed Statement of Net Assets. Financial information from 2008 financial statements is also presented for comparison purposes. Table 1 Net Assets (in millions) 2009 Governmental Business-type Total Primary Activities Activities Government Current and other Assets $ 34.77 $ 15.46 $ 50.24 Capital Assets 107.34 147.23 254.58 Other Non-Current Assets 3.74 8.23 11.98 Total Assets 145.86 170.93 316.79 Long-term Debt 15.87 38.38 54.25 Other Liabilities 5.06 5.13 10.19 Total Liabilities 20.93 43.50 64.44 Net Assets: Invested in Capital, Net of Debt 97.71 113.77 211.48 Restricted 3.22 0.78 3.99 Unrestricted 24.01 12.88 36.88 Total Net Assets $ 124.93 $ 127.42 $ 252.35 2008 Governmental Business-type Total Primary Activities Activities Government Current and other Assets $ 37.31 $ 9.19 $ 46.50 Capital Assets 97.77 140.27 238.04 Other Non-Current Assets 0.99 3.21 4.20 Total Assets 136.07 152.67 288.74 Long-term Debt 16.39 31.36 47.75 Other Liabilities 6.12 5.63 11.75 Total Liabilities 22.51 36.99 59.50 Net Assets: Invested in Capital, Net of Debt 85.29 109.74 195.03 Restricted 4.00 0.75 4.75 Unrestricted 23.75 5.71 29.46 Total Net Assets $ 113.04 $ 116.20 $ 229.24 15 City of Pasco, Washington 20 0g Comprehensive AnnuaCTinanciaCReport 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) 2009 2008 Governmental Business-type Total Primary Governmental Business-type Total Primary Activities ActiNities Government Activities Activities Government Revenues Program Revenues: Charges for Services $ 15.03 $ 18.72 $ 33.75 $ 12.19 $ 17.23 $ 29.42 Operating Grants&Contributions 0.50 - 0.50 0.38 - 0.38 Capital Grants&Contributions 13.28 3.06 16.34 14.75 3.25 18.00 General Revenues: - Property Taxes 5.74 - 5.74 5.51 - 5.51 Property Taxes levied for Debt Service 0.53 0.53 0.54 0.54 Sales&Use Taxes 8.00 8.00 8.84 8.84 Occupational Utility Taxes 8.92 8.92 8.69 8.69 Other Taxes 4.69 - 4.69 4.65 - 4.65 Investment Earnings 0.73 0.40 1.13 0.99 0.43 1.42 Miscellaneous Revenues 0.33 - 0.33 - Total Revenues 57.77 22.18 79.95 56.54 20.91 77.45 Program expenses including indirect expenses General Government 10.58 - 10.58 9.60 - 9.60 Judicial 0.92 0.92 0.81 0.81 Public Safety 18.74 18.74 18.30 18.30 Physical Environment 3.05 3.05 3.53 3.53 Transportation 5.14 5.14 4.33 4.33 Health and Human Services 0.06 0.06 0.06 0.06 Economic Environment 1.38 1.38 1.20 1.20 Culture and Recreation 6.21 6.21 5.98 5.98 Interest on Long Term Debt 0.41 - 0.41 0.59 - 0.59 Water - 6.03 6.03 - 5.99 5.99 Sewer 6.83 6.83 6.32 6.32 Water Process Reuse 1.56 1.56 1.57 1.57 Storm Water 0.74 0.74 0.61 0.61 Irrigation 1.01 1.01 1.01 1.01 Internal Service - 0.40 0.40 - 0.48 0.48 Total Expenses 46.50 16.56 63.06 44.40 15.98 60.38 Changes in Net Assets 11.27 5.62 16.89 12.14 4.93 17.07 Transfers 0.57 (0.57) (0.00) 0.61 (0.61) - Total Changes in Net Assets $ 11.83 $ 5.05 $ 16.89 $ 12.75 $ 4.32 $ 17.07 REVENUE HIGHLIGHTS As can be seen in the preceding table, 2009 governmental revenues increased slightly in most categories,but a significant increase was realized in the Charges for Services category. Generally, the same is also true for business-type operating revenues, with the exception is capital grants and contributions; of which increased significantly. 16 City of Pasco, 'Washing ton 2000 Comprehensive AnnuaCTinanciaCReport Following is a graphical breakdown of revenues by general category for 2009: Sources of Revenues 2009 Investment Earnings 1% Non-Property Chargesfor Taxes Services 25.5% 42% Property Taxes 8% Operating Grants& Contributions Capital Grants .5% Contributions 21% Following is a graphical breakdown of expenditures by general category for 2008: Sources of Revenues 2008 Investment Earnings 2% Non-Property Charges for Taxes Services 29% 38% Property Taxes 8% Operating Grants& Capital Contributions Grants& 0% Contributions 23% 17 City of Pasco, 'Washington 2000 Comprehensive AnnuaCTinanciaCReport Comments on Pasco's economic growth are contained in the Transmittal Letter. The City's assessed value grew 2.5% for fiscal year 2009 to $2,934,792,310. This was driven by the $50 million in new construction values added during 2009. The City's general levy rate per $1,000 of assessed value was reduced by 9.8% for taxes paid during 2009. THE CITY FUNDS Governmental Funds The governmental funds, as presented on the Governmental Funds Balance Sheet, reported a combined fund balance of$22,275,495. Major Funds • The General Fund a. From 2008 to 2009 the total assets decreased by $829,048. This decrease is due to interfund loans to non-major funds to cover negative cash balances. b. Total liabilities increased by $318,187. This increase is due mainly to increases in accounts payable and deposits payable balances. c. Fund Balance decreased by $1,147,235. • 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 16,389 customers, 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 13,647 customers, 89% of which are single-family residential customers. Sewer rates were actually decreased by 10% effective on January 1, 2007. a. Total assets increased by $18,021,807. b. Total liabilities increased by$7,026,491 due to payments made on outstanding Long- term debt. c. Net assets increased by $10,995,316. 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. • $1,795,300 in expense increases were added to the General Fund to cover: increases in Municipal Court, legal cost, legal services, engineering plans and inspections, interfund 18 City of Pasco, 'Washington 2000 Comprehensive AnnuaCFinanciaCReport loans to funds that had a negative fund balance and to allow spending of unanticipated revenue streams and their corresponding expenses. • $1,795,300 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 total budget in 2009. • $451,500 in expense increase in Other Operating Funds to cover: street maintenance related cost, external engineering services, salary/benefit for custodial services and general expenses. • $385,000 in expense increase in the Capital Improvement Fund to cover unanticipated cost. 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, 2009 was $41,791,155. 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 2009, the City had $266,400,216 invested in a variety of capital assets as illustrated in the following table. Capital assets net of depreciation increased by approximately $24.3 million in 2009. Of this amount, there was an increase of$12.3 million in governmental- type activity, and $12 million in business-type activity capital expenditures and infrastructure contributions. 19 City of Pasco, -Washington 2009 Comprehensive AnnualginanciaCPxport Table 3 Capital Assets at Year-End (Net of Depreciation) 2009 Governmental Business-type Activities Activities Total Land $ 6,466,727 $ 7,288,628 $ 13,755,355 Buildings & Structures 23,423,820 - 23,423,820 Improvements 6,161,687 - 6,161,687 Machinery & Equipment 1,344,867 - 1,344,867 Work-in-Progress 3,744,867 8,079,396 11,824,263 Infrastructure 67,805,059 - 67,805,059 Equipment Rental 2,103,688 1,053,698 3,157,386 Equipment Animal Control 38,305 - 38,305 Source of Supply - 84,097 84,097 Pumping Plants - 4,414,479 4,414,479 Treatment Plants - 23,442,308 23,442,308 Transmission, Distribution & Collection Lines - 77,981,939 77,981,939 General Plant Assets - 2,609,239 2,609,239 West Pasco Water System - 325,141 325,141 Plant Acquisition - 280,386 280,386 Process Water Reuse Plant - 8,015,837 8,015,837 Irrigation - 18,092,087 18,092,087 Storm Water Assets - 3,643,961 3,643,961 Total Capital Assets Net of Depreciation $ 111,089,020 $ 155,311,196 $ 266,400,216 Table 4 Capital Assets at Year-End (Net of Depreciation) 2008 Governmental Business-type Activities Activities Total Land $ 5,855,166 $ 317,786 $ 6,172,952 Buildings & Structures 23,492,630 - 23,492,630 Improvements 6,745,216 - 6,745,216 Machinery & Equipment 1,283,125 - 1,283,125 Work-in-Progress 986,569 3,213,130 4,199,699 Infrastructure 58,092,092 - 58,092,092 Equipment Rental 2,253,873 1,001,283 3,255,156 Equipment Animal Control 52,324 - 52,324 Source of Supply - 90,637 90,637 Pumping Plants - 4,773,166 4,773,166 Treatment Plants - 22,267,225 22,267,225 Transmission, Distribution & Collection Lines - 76,923,212 76,923,212 General Plant Assets - 1,671,005 1,671,005 West Pasco Water System - 360,059 360,059 Plant Acquisition - 303,751 303,751 Process Water Reuse Plant - 11,970,973 11,970,973 Irrigation - 17,063,723 17,063,723 Storm Water Assets - 3,363,936 3,363,936 Total Capital Assets Net of Depreciation $ 98,760,995 $ 143,319,886 $ 242,080,881 See Note 6 for additional information on capital assets. 20 City of Pasco, Uashington 20 0g Comprehensive AnnuaCTinanciaCReport Debt Administration At December 31, 2009, the City had a number of debt issues outstanding. These issues include $9,945,000 of general obligation bonds, both voted and non-voted, $24,710,000 of revenue and revenue refunding bonds, and $15,000 of special assessment bonds. The City's general obligation bonds have a 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 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 $2,124,864 at December 31, 2009. 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 $14,423,946. 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, 2009 is $870,819. 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. 21 City of Pasco, 'Washing ton 20 0g Comprehensive AnnuaCTinanciaCAeport FINANCIAL CONTACT The City's financial statements are designed to present users with a general overview of the City's finances and to demonstrate the City's accountability. If you have questions about this report or need additional information, contact the City's Finance Division of the Administrative and Community Services Department, 525 N. 3`a Avenue, Pasco, Washington 99301. 22 City of Pasco, Washington 20 0g Comprehensive AnnuaCTinanciaCAeport 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. 23 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCReport This page is intentionally left blank 24 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCAeport BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements 25 City of Pasco, Washington 2009 Comprehensive AnnualginanciaCPxport Statement of Net Assets December 31,2009 Governmental Business-Type Activities Activities 2009 2008 ASSETS Current Cash&Cash Equivalents $ 758,361 $ 7,168,320 $ 7,926,680 $ 1,856,661 Investments 24,768,362 6,769,049 31,537,412 32,738,059 Receivables(net of allowances) Taxes 417,987 - 417,987 2,573,202 Customer Accounts 2,506,935 678,062 3,184,997 7,508,657 Due from Other Funds 2,164 15,062 17,226 - Interest Receivable 127,873 67,694 195,567 219,378 Other Receivables 5,937,834 333,036 6,270,870 1,017,041 Inventories 8,179 423,429 431,608 292,714 Prepaid Insurance - 9,352 9,352 20,036 Joint Ventures 246,195 - 246,195 278,229 Land 6,466,727 7,288,627 13,755,354 6,172,952 Capital Assets,Net of Depreciation 33,072,435 41,365,399 74,437,834 76,265,266 Construction Work In Progress 3,744,867 8,079,396 11,824,263 4,199,699 Infrastructure,Net of Depreciation 67,805,060 98,577,773 166,382,833 155,442,964 Deferred Charges - 150,869 150,869 162,601 TOTAL ASSETS 145,862,979 170,926,068 316,789,047 288,747,459 LIABILITIES Current Accounts Payable 1,312,203 947,467 2,259,670 956,993 Bank Overdraft - - - 1,768,775 Due to Other Governmental Units 90,808 49,702 140,510 39,521 Retainage Payable - 150,202 150,202 201,181 Deposits Payable 420,182 670,438 1,090,620 498,201 Interest Payable - 400,703 400,703 359,901 Other 504,849 - 504,849 501,095 Deferred Revenue - (156,918) (156,918) 1,262,101 Non-Current Liabilities Deferred Revenue 4,641,885 - 4,641,885 5,583,891 Unclaimed Property 6,801 29,031 35,832 30,516 Claims Incurred Not Reported 550,000 - 550,000 550,000 Due within One Year 2,732,534 3,064,082 5,796,616 5,778,250 Due in More than One Year 10,674,710 38,346,771 49,021,481 41,973,518 Total Liabilities 20,933,972 43,501,478 64,435,450 59,503,943 NET ASSETS Invested in Capital Assets,Net of Related Debt 97,706,730 113,771,999 211,478,729 195,030,110 Restricted for: Debt Service 1,198,693 775,106 1,973,799 2,920,664 Capital Improvements - - - 15,165 Other Restricted 2,017,888 - 2,017,888 1,815,716 Unrestricted(deficit) 24,005,696 12,877,485 36,883,181 29,461,861 Total Net Assets $ 124,929,007 $ 127,424,590 $ 252,353,597 $ 229,243,516 See accompanying notes to the basic financial statements. 26 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCReport Ln CD �_ C-- i N D) O N M - n ;3- N W CO W C- W C-- CD N N It co CD CD N N W V N Lo W N O W W W W W M LO N (D CO O Lo M M I- V O r N r V O W Nt O V LO W Nt W r W (D r- W V 7 O (fl W W W ' W O N N Lo M M�- It N m O (o V f-- N W (o M O M M �_ V M W d' M co O h W M O d' O O M m M V 0 W LO 1 V V O M � V V Co Lo Lo LO I- m w It O O N V W O W V ! 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E m c o (°� aEi aEi m aci 3 t m ami 0 > � E E m a) m o o) � � m m � E oc9 � aa � xwU � � (n � in - o (n o u- a c7 00 (n 27 City of Pasco, -Washington 2009 Comprehensive AnnualginanciaCPxport Balance Sheet Governmental Funds December 31,2009 Total Other Governmental General Governmental Funds Fund Funds 2009 2008 ASSETS Current Cash&Cash Equivalents $ 68,299 $ (58,228) $ 10,071 $ 817,032 Investments 6,761,464 14,071,475 20,832,939 22,033,586 Receivables(net of allowances) Taxes 322,426 95,561 417,987 2,573,202 Customer Accounts 1,477,362 1,029,573 2,506,935 6,647,003 Interfund Loans Receivable 1,327,800 120,460 1,448,260 677,900 Interest Receivable 35,660 68,996 104,656 129,932 Other Receivables 2,026,965 3,910,869 5,937,834 723,023 TOTAL ASSETS 12,019,976 19,238,706 31,258,682 33,601,678 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable 371,620 909,815 1,281,435 678,776 Bank Overdraft - - - 1,768,775 Interfund Loans Payable - 2,002,227 2,002,227 634,900 Due to Other Governmental Units 89,965 843 90,808 8,792 Bonds,Notes,Loans Payable - 35,000 35,000 120,000 Deposits Payable 420,182 - 420,182 404,691 Other - 504,849 504,849 501,095 Deferred Revenue 1,316,555 3,325,330 4,641,885 5,583,891 Unclaimed Property 6,801 - 6,801 5,434 Total Liabilities 2,205,123 6,778,064 8,983,187 9,706,354 Fund Balances Reserved for: Advances to Other Funds 1,327,800 120,460 1,448,260 677,900 Debt Service - 659,788 659,788 2,073,622 Capital Improvements - - - 15,165 Other Reserves 15,165 2,017,888 2,033,053 1,815,716 Unreserved,Reported in: General Fund 8,471,888 - 8,471,888 10,270,123 Special Revenue Funds - 9,010,436 9,010,436 9,871,589 Debt Service Funds 1,307,212 1,307,212 921,004 Capital Project Funds (655,142) (655,142) (1,749,795) Total Fund Balances 9,814,853 12,460,642 22,275,495 23,895,324 TOTAL LIABILITIES AND FUND BALANCES $ 12,019,976 $ 19,238,706 Amounts reported for governmental activities in the statements of net assets are different because: balance in government funds 22,275,495 Capital Assets used in governmental activities are not financial resources and therefore are not reported in the government funds. 109,193,291 Internal Service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of internal service funds are included in the governmental activities in the Statement of Net Assets. 6,807,580 Some liabilities,including bonds payable,are not due and payable in the current period and therefore are not reported in the funds. (13,347,359) Net assets of governmental activities $ 124,929,007 See accompanying notes to the basic financial statements. 28 City o f Pasco. Washington 200P Comprehensive AnnualginanciaCPxport Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31,2009 Total Other Governmental General Governmental Funds Fund Funds 2009 2008 REVENUES Taxes $ 22,614,629 $ 2,725,499 $ 25,340,128 $ 25,716,456 Licenses&Permits 1,586,917 272,869 1,859,786 1,615,735 Intergovernmental Revenue 1,852,035 2,188,736 4,040,771 5,293,226 Charges for Services 2,839,213 2,446,234 5,285,447 4,770,921 Fines&Forfeitures 1,012,084 50,753 1,062,837 1,016,739 Investment Income 249,769 367,095 616,864 858,136 Miscellaneous Revenue 581,939 1,763,585 2,345,524 1,452,321 Total Revenues 30,736,586 9,814,771 40,551,357 40,723,534 EXPENDITURES Current: General Government 4,924,210 - 4,924,210 4,526,556 Judicial 922,376 - 922,376 813,800 Public Safety 16,327,460 2,090,974 18,418,434 17,711,319 Physical Environment 1,805,054 261,319 2,066,373 2,077,596 Transportation - 1,566,408 1,566,408 1,536,157 Health and Human Services 12,400 46,117 58,517 56,652 Economic Environment 478,957 465,077 944,034 671,118 Culture and Recreation 3,771,508 898,233 4,669,741 4,279,338 Capital Outlay 1,180,315 6,536,996 7,717,311 7,345,013 Debt Service Principal 657,732 591,552 1,249,284 1,108,336 Interest 227,655 185,738 413,393 587,421 Total Expenditures 30,307,667 12,642,414 42,950,081 40,713,306 Excess of Revenues Over(Under)Expenditures 428,919 (2,827,643) (2,398,724) 10,228 OTHER FINANCING SOURCES (USES) Disposition of Capital Assets - - - 7,076 Proceeds of General L-T Debt - - - - Insurance Recoveries/otherrevenues 212,312 39,180 251,492 75 Operating Transfers-(In) 119,676 4,873,107 4,992,783 5,093,754 Operating Transfers-(Out) (1,950,796) (2,557,450) (4,508,246) (4,542,032) Total Other Financing Sources(Uses) (1,618,808) 2,354,837 736,029 558,873 Net Change in Fund Balances (1,189,889) (472,806) (1,662,695) 569,101 Prior Year Adjustments 42,654 213 42,867 1,627 Fund Balance Beginning 10,962,088 12,933,235 23,895,323 23,324,595 Fund Balance, Ending $ 9,814,853 $ 12,460,642 $ 22,275,495 $ 23,895,323 See accompanying notes to the basic financial statements. 29 City o f Pasco. Washington 2009 Comprehensive AnnualginanciaCPxport Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Year Ended December 31,2009 Net change in fund balances-total governmental funds $ (1,662,695) Amounts reported for governmental activities in the Statement of Activities are different because of the following reconciling items: Governmental funds report capital outlays as expenditures. However,in the Statement of Net Assets they are reported net of depreciation as a capital asset. This is the amount by which capital outlays exceeded depreciation in the current period. (521,253) The Statement of Net Assets shows a decrease in the value of Joint Ventures. (32,034) Repayment of bond principal is an expenditure in the governmental funds,but the payment reduces long-term liabilities in the Statement of Net Assets. This is the amount of debt service payments for bonds. This amount comes from the Statement of Revenues, Expenditures,and Changes in Fund Balances for Government Funds. 1,249,284 Non-cash capital contributions reported in the Statement of Activities do not involve the use of current financial resources and,therefore,are not reported as revenues in governmental funds. 12,849,347 Some expenses reported in the Statement of Activities do not involve the use of current financial resources and,therefore,are not reported as expenditures in governmental funds. (817,364) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of internal service funds is reported with governmental activities. This amount comes from the Combining Statement of Revenues, Expenditures and Changes in Net Fund Assets for Internal Service Funds, Net Operating Income. 772,738 Change in net assets of governmental activities $ 11,838,023 See accompanying notes to the basic financial statements. 30 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCPeport Statement of Net Assets Proprietary Funds For the Year Ended December 31,2009 2009 2008 Business Type Business Type Activities Governmental Business Type Activities Governmental Business Type Enterprise Funds Activities Activities Enterprise Funds Activities Activities Water/Sewer Internal Service Internal Service Water/Sewer Internal Service Internal Service Fund Funds Funds Fund Funds Funds ASSETS Current Assets: Current Cash&Cash Equivalents $ 5,807,295 $ 748,290 $ 301,264 $ 55,588 $ 131,692 $ 122,308 Receivables(net of allowances) Utility Receivables 678,062 - - 835,946 - - Other Receivables 333,036 294,018 - Notes Receivable - - - - Interfund Loans Receivable 15,062 538,905 - 17,000 100,000 - Interest Receivable 59,545 23,217 8,149 53,910 25,132 10,404 Due from Governmental Units 34,054 17,226 - - 25,708 - Merchandise Inventory 423,429 8,179 284,357 8,357 - Prepaid Insurance 9,352 20,036 - - Total Current Assets 7,359,835 1,335,817 309,413 1,560,855 290,889 132,712 Non-Current Assets: Investments 5,503,193 3,935,423 1,265,856 5,503,193 3,935,423 1,265,856 Restricted Assets Debt Service: Cash&Cash Equivalents 1,059,761 - - 730,042 - - Capital Assets Land 7,288,627 - - 317,786 - - Buildings/Structures/Improvements/ Equipment&Systems 67,150,321 5,521,646 2,234,876 68,372,350 5,357,490 2,104,799 Less Accumulated Depreciation (26,838,620) (3,379,653) (1,181,178) (26,935,535) (3,051,293) (1,103,516) Infrastructure 120,128,904 115,594,180 - - LessAccumulatedDepreciation (21,551,131) (18,243,308) - - Construction Work In Progress 8,079,396 3,213,130 - - Deferred Charges 116,815 162,601 - - Total Non-Current Assets 160,937,266 6,077,416 2,319,554 148,714,439 6,241,620 2,267,139 TOTAL ASSETS $ 168,297,101 $ 7,413,233 $ 2,628,967 $ 150,275,294 $ 6,532,509 $ 2,399,851 31 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCPeport Statement of Net Assets Proprietary Funds For the Year Ended December 31,2009 2009 2008 Business Type Business Type Activities Governmental Business Type Activities Governmental Business Type Enterprise Funds Activities Activities Enterprise Funds Activities Activities Water/Sewer Internal Service Internal Service Water/Sewer Internal Service Internal Service Fund Funds Funds Fund Funds Funds LIABILITIES Current Liabilities: Accounts Payable 946,789 30,768 678 238,330 34,068 5,819 Due to Other Governments 49,702 - - 30,729 - - Retainage Payable 150,202 201,181 Matured G.O.Bonds - - - Current Portion Bonds Payable 1,405,000 - 1,405,000 - Current Portion Loans Payable 1,507,037 - 1,507,037 160,000 Deposits 670,438 - 93,510 - Interest Payable 400,703 - 359,901 Deferred Credits (156,918) - - 1,262,101 Total Current Liabilities 4,972,953 30,768 678 5,097,789 194,068 5,819 Non-Current Liabilities Compensated Absences 144,161 24,885 7,883 129,746 20,934 7,883 Claims Incurred Not Reported - 550,000 - - 550,000 - Unclaimed Property 29,031 - 25,082 - Bonds Payable: 1998 Revenue Bonds Series A 1,315,000 1,420,000 1998 Refunding Bonds Series B 3,505,000 - 4,120,000 1998 Revenue Bonds Series C 215,000 - 315,000 1999 Revenue Bonds 485,000 - 535,000 2001 Revenue Bonds 370,000 - 435,000 2002 Revenue Bonds 4,295,000 - 4,550,000 2005 Revenue Bonds 3,735,000 - 3,900,000 2007&2009 Revenue Bonds 10,790,000 - 795,000 Less:Current Portion (1,405,000) - (1,405,000) Loans Payable: PWTF Loans 2,124,863 - 2,447,951 SRF Loan 14,423,946 - 15,607,895 - Interfund Loans - - - 160,000 Less:Current Portion (1,507,037) - - (1,507,037) (160,000) - Total Non-Current Liabilities 38,519,964 574,885 7,883 31,368,637 570,934 7,883 Total Liabilities 43,492,917 605,653 8,561 36,466,426 765,002 13,702 NETASSETS Investment in Capital Assets: Net of Related Debt 112,718,301 2,141,993 1,053,698 107,631,675 2,306,197 2,104,799 Restricted for Debt Service 775,106 538,905 - 747,042 100,000 - Unrestricted 11,310,777 4,126,682 1,566,708 5,430,151 3,361,310 281,350 Total Net Assets $ 124,804,184 $ 6,807,580 $ 2,620,406 $ 113,808,868 $ 5,767,507 $ 2,386,149 See accompanying notes to the basic financial statements. 32 City of Pasco, Washington 20 0g Comprehensive AnnuaCTinanciaCPeport Statement of Revenues,Expenses,and Changes in Fund Net Assets Proprietary Funds For the Years Ended December 31,2009 and 2008 2009 2008 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 OPERATING REVENUES Charges for Services-Internal $ - $ 5,089,332 $ 627,300 $ - $ 4,499,715 $ 525,120 Charges for Services-Other 15,083,562 487,472 2,613 14,440,301 725,659 6,424 Miscellaneous Revenue 1,789,325 1,332,057 Total Operating Revenues 16,872,887 5,576,804 629,913 15,772,358 5,225,374 531,544 OPERATING EXPENSES Personal Services 3,614,536 779,620 16,800 3,046,231 749,983 18,000 Supplies 481,446 - - 673,459 - - Other Services&Charges 3,688,850 4,024,418 Taxes 2,070,525 - - 1,862,729 - - Maintenance Expenses - 712,201 185,356 - 766,902 225,973 Insurance Claims and Expenses - 2,886,658 - - 2,628,228 - Depreciation 4,622,319 421,644 222,734 4,502,037 438,819 223,970 Capital Outlays 3,943 (22,122) 5,167 16,627 Total Operating Expenses 14,477,676 4,804,066 402,768 14,108,874 4,589,099 484,570 OPERATING INCOME(LOSS) 2,395,211 772,738 227,145 1,663,484 636,275 46,974 NON-OPERATING REVENUES(EXPENSES) Interest and Investment Revenue 359,270 117,778 39,497 373,099 128,396 51,925 Farmland Rentals 948,870 - - 756,230 - - Interest Expense (1,628,772) (1,344,208) Amortization Expense (51,031) (44,054) Miscellaneous Non-Operating Revenues 269,672 172,223 Total Non-Operating Revenues(Expenses) (101,991) 117,778 39,497 (86,710) 128,396 51,925 Income(Loss)before Contributions and Transfers 2,293,220 890,516 266,642 1,576,774 764,671 98,899 Capital Contributions 3,011,986 68,957 48,597 3,015,396 234,525 238,162 Transfers In 643,459 80,982 - 826,680 61,222 - Transfers(Out) (1,127,996) (80,982) (1,387,924) (51,700) Changes in Net Assets 4,820,669 1,040,455 234,257 4,030,926 1,060,418 285,361 Prior Year Adjustments 6,174,647 (382) - 790,959 (426,290) - NETASSETS-BEGINNING 113,808,868 5,767,507 2,386,149 108,986,983 5,133,379 2,100,788 NETASSETS-ENDING $ 124,804,184 $ 6,807,580 $ 2,620,406 $ 113,808,868 $ 5,767,507 $ 2,386,149 See accompanying notes to the basic financial statements. 33 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCfinanciaCReport Statement of Revenues,Expenses,and Changes in Fund Net Assets Detail Proprietary Funds For the Year Ended December 31,2009 Business Type Activities Governmental Business-type Enterprise Funds Activities Activities Water Sewer Process Water Stormwater Irrigation Internal Service Internal Service Operations Operations Reuse Operations Operations Total Funds Funds OPERATING REVENUES Charges for Services-Internal $ - $ - $ - $ - $ - $ - $ 5,089,332 $ 627,300 Charges for Services-Other 5,734,049 6,449,138 1,720,517 462,205 717,653 15,083,562 487,472 2,613 Miscellaneous Revenue 762,310 1,020,055 6,960 1,789,325 Total Operating Revenues 6,496,359 7,469,193 1,720,517 462,205 724,613 16,872,887 5,576,804 629,913 OPERATING EXPENSES Personal Services 1,441,659 1,371,402 221,759 313,091 266,625 3,614,536 779,620 16,800 Supplies 204,229 208,249 17,399 37,420 14,149 481,446 - - Other Services&Charges 1,361,520 1,228,165 579,216 263,657 256,292 3,688,850 - - Taxes 890,149 769,675 300,218 49,482 61,001 2,070,525 - - Maintenance Expenses - - - - - - 712,201 185,356 Insurance Claims and Expenses - - - - - - 2,886,658 - Depreciation 1,445,194 2,513,464 209,928 71,442 382,291 4,622,319 421,644 222,734 Capital Outlays 3,943 (22,122) Total Operating Expenses 5,342,751 6,090,955 1,328,520 735,092 980,358 14,477,676 4,804,066 402,768 OPERATING INCOME(LOSS) 1,153,608 1,378,238 391,997 (272,887) (255,745) 2,395,211 772,738 227,145 NON-OPERATING REVENUES(EXPENSES) Interest and Investment Revenue 143,708 165,825 39,520 4,275 5,942 359,270 117,778 39,497 Farmland Rentals - - 948,870 - - 948,870 - - Interest Expense (651,157) (729,890) (219,051) - (28,674) (1,628,772) -Amortization Expense (35,215) (5,013) (10,803) - - (51,031) - - Miscellaneous Non-Operating Revenues 85,815 183,857 269,672 Total Non-Operating Revenues(Expenses) (456,849) (385,221) 758,536 4,275 (22,732) (101,991) 117,778 39,497 Income(Loss)before Contributions and Transfers 696,759 993,017 1,150,533 (268,612) (278,477) 2,293,220 890,516 266,642 Capital Contributions 964,430 1,167,148 - 334,205 546,203 3,011,986 68,957 48,597 Transfers In - 379,459 - 264,000 - 643,459 80,982 - Transfers(Out) (1,127,996) (1,127,996) (80,982) Changes in Net Assets 1,661,189 1,411,628 1,150,533 329,593 267,726 4,820,669 1,040,455 234,257 Prior Year Adjustments - - - - - 6,174,647 (382) - NET ASSETS-BEGINNING 113,808,868 5,767,507 2,386,149 NETASSETS-ENDING $124,804,184 $ 6,807,580 $ 2,620,406 See accompanying notes to the basic financial statements. 34 City of Pasco, Washington 20 0g Comprehensive AnnuaCTinanciaCPeport Statement of Cash Flows Proprietary Funds For the Year Ended December 31,2009 2009 2008 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 $ 17,607,699 $ 5,538,724 $ 629,913 $ 16,826,992 $ 5,186,441 $ 531,505 Payments for Maintenance&Ops. - (1,446,687) (176,620) - (1,465,135) (257,186) Payments for Merchandise (639,072) (654,790) Payments for Wages (3,600,121) (3,076,641) Payments for Operating Expenses (4,412,862) (5,278,755) Internal Activities-payments to other funds Payments for Taxes (2,070,525) (1,903,025) Payments to Employees (2,886,806) (2,628,376) Net Cash provided(used)by operating activities 6,885,119 1,205,231 453,293 5,913,781 1,092,930 274,319 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: Prior Year Adjustments 65,365 - (426,290) - Transfersln(Out) (561,244) 80,982 (561,244) 61,222 Non-Operating Revenue 609,405 928,453 Net Cash provided from non-capital financial activities 48,161 146,347 367,209 (365,068) CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Capital Assets (6,062,344) 68,957 48,597 (3,685,501) 234,525 238,162 Principal Paid on Bonds&Loans (2,808,097) - - (3,016,662) - - Interest Paid on Bonds&Loans (1,587,970) (1,377,415) Construction Work in Process - (7,800,560) Proceeds of Bonds 9,941,060 - Payments received from Notes and Loans (45,786) 11,100 Net Cash Used by Capital&Related Financing Activities (563,137) 68,957 48,597 (15,869,038) 234,525 238,162 CASH FLOWS FROM INVESTING ACTIVITIES: Interfund Loans - - - - (75,000) (30,000) Investment Activities Income 320,253 118,049 39,497 384,439 128,396 51,925 Net Cash Provided from Investing Activities 320,253 118,049 39,497 384,439 53,396 21,925 Net Increase(Decrease)in Cash and Cash Equivalents 6,690,396 1,538,584 541,387 (6,378,951) 1,015,783 534,406 Cash and Cash Equivalents January 1 6,288,824 3,887,318 1,651,809 12,667,775 2,871,535 1,117,403 Cash and Cash Equivalents December 31 $ 12,979,220 $ 5,425,902 $ 2,193,196 $ 6,288,824 $ 3,887.318 $ 1,651,809 NON CASH ACTIVITIES: Capital Contributions 3,011,807 2,824,658 See accompanying notes to the basic financial statements. 35 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCPeport Statement of Cash Flows Proprietary Funds For the Year Ended December 31,2008 2009 2008 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 Operati ng Income $ 2,395,211 $ 772,738 $ 227,145 $ 1,663,484 $ 636,275 $ 46,974 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES Depreciation 4,673,350 421,644 222,734 4,502,037 438,819 223,970 Changes in assets and liabilities: (Increase)/Decrease in Customer Receivables (118,867) (38,080) - 33,958 (38,933) (39) (Increase)/Decrease in Prepaid Expenses - (810) - (Increase)/Decrease in Inventories 139,072 18,669 (Increase)/Decrease in Grant Receivable - 1,172 Increase/(Decrease)in Customer Deposits 576,928 - - 6,277 - - Increase/(Decrease)in Accounts Payable 139,072 44,584 3,414 (393,055) 56,064 3,414 Increase/(Decrease)in Unclaimed Property 3,949 - - 4,094 - - Increase/(Decrease)in Due to Other Funds - - Increase/(Decrease)in Deferred Revenue (1,105,183) 887 Increase/(Decrease)in Taxes Payable 167,172 - (40,296) - Increase/(Decrease)in Compensated Absences 14,415 3,951 (30,410) 705 Increase/(Decrease)in Latecomer Payable - - - - Increase/(Decrease)in Advance Minimum Deposits 147,774 Net Cash Provide by Operating Activities $ 6,885,119 $ 1,204,837 $ 453,293 $ 5,913,781 $ 1,092,930 $ 274,319 See accompanying notes to the basic financial statements. 36 City of Pasco, Washington 2009 Comprehensive AnnualginanciaCPxport Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2009 2009 2008 Fire Pension Agency Fire Pension Agency Fund Funds Fund Funds ASSETS Cash& Cash Equivalents $ 30,419 $ (4,520) $ 107,328 $ 285,357 Receivables (net of allowances) Interest Receivable 14,212 - 15,597 - Imestments, at FMV 3,520,779 - 3,113,361 - Total Assets 3,565,410 (4,520) 3,236,286 285,357 LIABILITIES Due to(from)Others - (4,520) - 285,357 Total Liabilities (4,520) - 285,357 NET ASSETS Held in Trust for Pension Benefits & Other Purposes $ 3,565,410 $ - $ 3,236,286 $ - See accompanying notes to the basic financial statements. 37 City of Pasco, Washington 2009 Comprehensive AnnualginancialR.eport Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the Year Ended December 31, 2009 2009 2008 Fire Pension Fire Pension Fund Fund ADDITIONS Taxes $ 39,785 $ 41,723 Investment Earnings Interest 61,734 61,372 Dividends 59,373 86,101 Net Increase (Decrease) in Fair Value of Investments 365,929 (1,064,918) Loan Interest - - Total Additions 526,821 (875,722) DEDUCTIONS Pension Benefits 92,145 106,764 Medical Premiums 92,352 82,963 Administrative Expenses 13,200 12,000 Total Deductions 197,697 201,727 Change In Net Assets 329,124 (1,077,449) Prior Year Adjustments - - NET ASSETS - BEGINNING 3,236,286 4,313,735 NET ASSETS - ENDING $ 3,565,410 $ 3,236,286 See accompanying notes to the basic financial statements. 38 City of Pasco, Uashington 20 0g Comprehensive AnnuaCTinanciaCReport 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 principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The 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 39 City of Pasco, Uashington 2009 Comprehensive AnnuaCFinanciaCAeport 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. 40 City of Pasco, 'WashiMton 20 o.A Comprehensive AnnuaCFinanciaCReport 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 Budget Annual appropriated budgets are adopted for the general and special revenue funds and for all proprietary funds on the modified accrual basis of accounting. Budgets for debt service and capital project funds are adopted at the level of the individual debt issue or project and for fiscal periods that correspond to the lives of debt issues or projects. Annual appropriated budgets are adopted at the level of the fund, except in the general fund, where expenditures may not exceed appropriations at the department level and the budgets constitute the legal authority for expenditures at that level. 41 City of Pasco, 'WashiMton 2000 Comprehensive AnnuaCginanciaCReport 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. Encumbrance 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 42 City of Pasco, 'Washington 2000 Comprehensive AnnuaCginanciaCReport 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 following Funds exceeded their budgets as a result of the Finance Manager departing the City in November, 2009 and new staff members not having institutional knowledge in the City's year-end accounting practices; all of the Funds had adequate ending fund balances to cover these amounts. Street Fund—($33,059) Multi-Modal Facility Fund-- ($74) Litter Abatement Fund—($65) Special Assessment Lodging Fund—($1,118) Revolving Abatement Fund—($92,105) Industrial Development & Infrastructure Fund—($29,461) 5. Deficit Fund Equity The following funds report a deficit fund equity position at December 31, 2009. FUNDS DEFICIT EQUITY BALANCE Cemetery Fund (32,578) LID Construction Fund (1,015,027) Arterial Street Fund (1,180,144) The following steps have been taken to eliminate the above deficits: The Cemetery Fund continues to attempt increased sales in excess of costs to assist in the elimination of its deficit. The fund reduced the deficit in 2009 as a result of operating transfers and increased sales. The LID Construction Fund will receive a funds transfer in 2010 for ULID 145 when bonds are sold to finance this project. The Arterial Street Fund experienced high construction costs during 2009, but had no corresponding grant revenue to offset expenditures. However, the deficit should be reduced substantially in 2010 since significant grant revenue is anticipated during the year. E. Assets, Liabilities And Equities 1. Cash and Equivalents It is the City's policy to invest all temporary cash surpluses. At December 31, 2009, the treasurer was holding $8,926,622 in short-term residual investments of surplus cash and 43 City of Pasco, 'Washing ton 2000 Comprehensive AnnuaCFinanciaCReport $32,864,533 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 2009 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, 2009, $91,173 in special assessments receivable was delinquent. Of this delinquent amount, $52,415 or 57.5% 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 lendingiborrowing 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. 44 City of Pasco, 'Washing ton 20 o.A Comprehensive AnnuaCginanciaCReport 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, 2009 are composed of the following: Cash and Investments - Debt Service $ 1,059,761 Cash Deposits 670,436 Total Restricted Assets 1 730 197 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 three 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. 45 City of Pasco, Washington 2009 Comprehensive AnnuaCTinanciaCReport There were no capitalized interest costs incurred by the City during fiscal year 2009. Property, plant and equipment of the primary government are depreciated using the straight-line method over the following estimated useful lives: ASSETS YEARS Buildings 40 Improvements 20 Machinery & Equipment 10 8. Other Property and 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 times the employee's annual vacation accrual rate and is payable upon resignation, retirement or death. 10. Other Accrued Liabilities These accounts consist of accrued wages and accrued employee benefits. 11. Long-Term Debt—See Note 10. 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. 46 City of Pasco, Uashinyton 200.9 Comprehensive AnnuafTinanciaCPeport 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 fund balance sheets 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 Commission (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 47 City of Pasco, UashiAgton 2009 Comprehensive AnnuaCginanciaCReport Washington, general obligations of Washington State municipalities, the State Treasurer's Investment Pool, or certificates of deposits with Washington State banks and savings and loan institutions. Investments of(pension/nonexpendable) trust funds are not subject to the preceding limitations. All temporary investments are stated at purchase price. Investments are shown on entity-wide Statement of Net Assets at fair market value. Investments are reported within Cash & 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, 2009. As of December 31, 2009, the City had the following investments: FAIR MARKET INVESTMENTS MATURITIES VALUE Federal Securities 30,498,791 30,498,791 Mutual Funds 1,938,019 2,365,742 State Treasurer's Investment Pool 8,876,203 8,876,203 Savings Accounts 50,419 50,419 Total Investments 41,363,432 41,791,155 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 $41,791,155 in 2009, $1,597,312 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. 48 City of Pasco, 'Washington 20 o.A Comprehensive AnnuaCginanciaCReport The following Property Tax Calendar for Franklin County, Washington provides the relevant property tax data for the 2009 tax year. Franklin County, Washington 2009 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 2009 was $2.0042 per $1,000 on an assessed valuation of$2,861,340,058 for a total regular levy of$5,725,000. 49 City of Pasco, -Washington 2009 Comprehensive AnnualginancialR.eport NOTE 6. CAPITAL ASSETS A. Capital Assets Capital assets activity for the year ended December 31, 2009 was as follows: Beginning Balance Combined Combined Ending Balance Governmental Activities 01/01/09 Increases Decreases 12/31/09 Capital assets, not being depreciated Land $5,602,588 $1,600,431 $1,835,734 $5,367,285 Land Infrastructure 252,578 2,040,563 1,193,699 1,099,442 Construction in Progress General 502,988 2,033,358 1,236,198 1,300,148 Construction in Progress Infrastructure 483,581 3,657,825 1,696,687 2,444,719 Total capital assets, not being depreciated 6,841,735 9,332,177 5,962,318 10,211,594 Capital assets, being depreciated Building 32,597,962 842,971 57,400 33,383,533 Improvements other than building 9,089,019 152,594 238,792 9,002,821 Machinery & Equipment 2,476,337 357,202 121,147 2,712,392 Infrastructure(1) 86,792,562 27,114,670 12,329,337 101,577,895 Equipment Rental 5,265,440 285,872 121,716 5,429,596 Equipment Animal control 92,050 0 0 92,050 Total Capital assets being depreciated 136,313,370 28,753,309 12,868,392 152,198,287 Less accumulated depreciation (3) Building 9,105,332 861,879 7,498 9,959,713 Improvements other than Building 2,343,803 574,698 77,367 2,841,134 Machinery & Equipment 1,193,212 237,717 63,473 1,367,456 Infrastructure (1) 28,700,470 5,082,717 10,351 33,772,836 Equipment Rental 3,011,567 558,389 244,048 3,325,908 Equipment Animal control 39,726 14,019 0 53,745 Total Accumulated Depreciation 44,394,110 7,329,419 402,737 51,320,792 Total capital assets, being depreciated, net $91,919,260 $21,423,890 $12,465,655 $100,877,495 Governmental activities capital assets net $98,760,995 $30,756,067 $18,427,973 $111,089,089 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities General Government $ 375,583 Security of Persons & Property 121,473 Physical Environment 50,266 Transportation 5,098,871 Economic Environment 338,939 Culture & Recreation 747,022 Judicial 3,143 Total Depreciation- Government Activities $ 6,735,297 50 City of Pasco, Washington 200A Comprehensive AnnualginanciaCPxport Beginning Balance Combined Combined Ending Balance Business Activities 01/01/09 Increases Decreases 12/31/09 Capital assets, not being depreciated Land $317,786 $6,970,842 $0 $7,288,628 Construction in Progress 3,213,130 4,866,266 - 8,079,396 Total capital assets, not being depreciated 3,530,916 11,837,108 - 15,368,024 Capital assets, being depreciated - Source of Supply 326,976 - - 326,976 Pumping Plant 8,593,671 - - 8,593,671 Treatment Plants 38,550,427 2,742,335 - 41,292,762 Transmission, Distribution & Collection Lines(1) 93,497,247 2,927,689 - 96,424,936 General Plant Assets 3,608,907 1,100,898 - 4,709,805 West Pasco Water System 1,328,485 - - 1,328,485 Plant Acquisition 700,961 - - 700,961 Industrial Waste Water Plant 15,262,923 106,168 4,906,995 10,462,096 Storm Water 3,572,110 352,519 - 3,924,629 Irrigation (1) 18,524,824 1,410,654 - 19,935,478 Equipment Rental 2,104,799 813,392 683,315 2,234,876 Total Capital assets being depreciated 186,071,330 9,453,655 5,590,310 189,934,675 Less accumulated depreciation (3) Source of Supply 236,339 6,540 - 242,879 Pumping Plants 3,820,505 359,220 - 4,179,725 Treatment Plants 16,283,202 1,567,252 - 17,850,454 Transmission, Distribution & Collection Lines 16,574,035 1,868,962 - 18,442,997 General Plant Assets 1,937,902 162,664 - 2,100,566 West Pasco Water System 968,426 34,918 - 1,003,344 Plant Acquisition (2) 397,210 23,365" - 420,575 Industrial Waste Water Plant 3,291,950 209,928 1,055,619 2,446,259 Storm Water 208,173 71,962 - 280,135 Irrigation (1) 1,461,100 382,291 - 1,843,391 Equipment Rental 1,103,516 410,086 332,424 1,181,178 Total Accumulated Depreciation (4) 46,282,358 5,097,188 1,388,043 49,991,503 Total capital assets, being depreciated, net $139,788,972 $4,356,467 $4,202,267 $139,943,172 Governmental activities capital assets net $143,319,888 $16,193,575 $4,202,267 $155,311,196 NOTE 7. PENSION PLANS Substantially all City of Pasco full-time employees and qualifying part-time employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing, multiple-employer public employee defined benefit and defined contribution retirement plans. The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes financial statements and required supplementary information for each plan. The DRS CAFR may be obtained from the Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA 98504-8380; or it may be downloaded from the DRS website at www.drs.wa.gov. 51 City of Pasco, 'Washing ton 20 o.A Comprehensive AnnuaCginanciaCReport 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 irrevocable 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 five 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.) This annual benefit is subject to a minimum for PERS Plan 1 retirees who have 25 years of service and have been retired 20 years, or who have 20 years of service and have been retired 25 years. Plan 1 members who retire from inactive status prior to the age of 65 may receive actuarially reduced benefits. If a survivor option is chosen, the benefit is further reduced. A cost-of-living allowance (COLA) is granted at age 66 based upon years of service times the COLA amount, increased three percent annually. Plan 1 members may also elect to receive an optional 52 City of Pasco, Washington 20 o.A Comprehensive AnnuaCFinanciaCReport 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. PERS 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 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 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) enacted in 2006. 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 percent multiplier. The benefit would be capped at 75 percent of AFC. Judges in PERS Plan 3 could elect a 1.6 percent of pay per year of service benefit, capped at 37.5 percent 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 percent 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. 53 City of Pasco, 'Washington 20 o.A Comprehensive AnnuaCginanciaCReport 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 1,192 participating employers in PERS. Membership in PERS consisted of the latest actuarial valuation data for the plans of June 30, 2008: Retirees and Beneficiaries Receiving Benefits 73,122 Terminated Plan Members Entitled To but not yet Receiving Benefits 27,267 Active Plan Members Vested 105,212 Active Plan Members Non-vested 56,456 Total 262,057 2. Funding olicy 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 percent for State agencies and local government unit employees, and at 7.5 percent for State government elected officials. The employer and employee contribution rates for Plan 2 and the Employer contribution rate for Plan 3 are developed by the Office of the State Actuary to continue to fully fund Plan 2 and the defined benefit portion of Plan 3. All employers are required to contribute at the level established by the Legislature. Under 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 percent to 15 percent; two of the options are graduated rates dependent on the employee's age. As a result of the implementation of the Judicial Benefit Multiplier Program in January 2007, a second tier of employer and employee rates was developed to fund, along with investment earnings, the increased retirement benefits of those justices and judges that participate in the program. The methods used to determine the contribution requirements are established under State statute in accordance with chapters 41.40 and 41.45 RCW. The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2009, were as follows: 54 City of Pasco, Washington 200g Comprehensive AnnuaCTinanciaCReport Members not participating in JBM: PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer* 5.31%** 5.31%** 5.31%*** Employee 6.00%**** 3.90%**** ***** *The employer rates do not include the employer administrative expense fee currently set at 0.16%. ** The employer rate for State elected officials is 7.89%for Plan 1 and 5.31%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 3.90%for Plan 2. *****Variable from 5.0%minimum to 15.0%maximum based on rate selected by the PERS 3 member. Members participating in JBM: PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer-State Agency* 7.81% 7.81% 7.81%** Employer-Local Govt.* 5.31% 5.31% 5.31%** Employee-State Agency 9.76% 7.25% 7.50%*** Employee-Local Govt. 12.26% 9.75% 7.50%*** *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: PERS Plan 1 PERS Plan 2 PERS Plan 3 2009 $ 39,492 $ 533,321 $ 84,383 2008 $ 40,277 $ 482,824 $ 84,170 2007 $ 33,638 $ 356,299 $ 62,010 55 City of Pasco, 'Washington 2000 Comprehensive AnnuaCTinanciaCAeport B. Law Enforcement Officers And Fire Fighters (Leoff) Plans 1 & 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: Term of Service Percent of Final Average 20 or more years 2.0% 10 but less than 20 years 1.5% 5 but less that 10 years 1.0% The 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 months' salary within the last 10 years of service. A cost-of-living 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 56 City of Pasco, 'WashiMton 2000 Comprehensive AnnuaCginanciaCReport service. The (FAS) 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 375 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2008: Retirees and Beneficiaries Receiving Benefits 9,268 Terminated Plan Members Entitled to but not yet Receiving Benefits 650 Active Plan Members Vested 13,120 Active Plan Members Non-vested 3,927 Total $ 26,965 2. Funding olicy Starting 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, 2009 were as follows: LEOFF Plan 1 LEOFF Plan 2 Employer* 0.16% 5.24%** Employee 0.00% 8.46% State N/A 3.38% *The employer rates include the employer administrative expense fee currently set at 0.16°/x. **The employer rate for ports and universities is 8.99%. 57 City of Pasco, 'Washing ton 2000 Comprehensive AnnuaCginanciaCReport 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 2009 $ 818 $ 495,665 2008 $ 812 $ 444,557 2007 $ 765 $ 404,634 The City does not have any employees enrolled in the Public Safety Employees Retirement System(PERS) 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, 2009, there were a total of 12 individuals covered by this system, and 4 of the 12 are widows. 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. 58 City of Pasco, -Washington 2009 Comprehensive AnnualginancialR.eport The following 10-year table of historical trend information shows the system's progress in accumulating sufficient assets to pay benefits when due: Net Assets Unfunded Unfunded Pension Benefits Available for Pension Benefit Pension Benefit Annual Covered as a% of Covered Fiscal Year Benefit* Obligation** Percent Funded Obligation Payroll*** Payroll 2009 3,565,410 3,111,039 114.61% (454,371) 35,419 -1282.85% 2008 3,214,175 3,035,160 105.90% (179,015) 78,486 -228.09% 2007 4,316,568 2,963,247 145.67% (1,353,321) 80,074 -1690.09% 2006 4,231,745 2,890,973 146.38% (1,340,772) 92,979 -1442.02% 2005 3,946,652 2,820,461 139.93% (1,126,191) 70,376 -1600.25% 2004 3,913,393 2,792,414 140.14% (1,120,979) 69,939 -1602.80% 2003 3,774,259 2,724,306 138.54% (1,049,953) 72,770 -1442.84% 2002 3,384,775 2,657,860 127.35% (726,915) 88,284 -823.38% 2001 3,668,413 2,593,034 141.47% (1,075,379) 69,173 -1554.62% 2000 3,663,819 2,529,789 144.83% (1,134,030) 63,364 -1789.71% * Market Value ** Actuarial study completed in 2005 Last eligible employee retired during 2009 The Fire Pension Fund has no Schedule of Contributions for 2009. The liabilities for future fund benefits are less than the market value of fund assets; consequently, no City contributions are required. Schedule of Funding Progress Unfunded Pension Actuarial Actuarial Valuation Value of Value of Benefit Percentage Date Assets Liabilities Obligation Funded 09/30/2005 $3,920,949 $2,820,461 ($1,100,488) 139.02% 12/31/1999 $3,467,025 $2,468,087 ($ 998,938) 140.47% 12/31/1984 $ 869,788 $1,501,537 $ 238,724 57.930 59 City of Pasco, 'Washington 2000 Comprehensive AnnuafTinanciaCAeport The following is the three-year historical data of Revenues and Expenditures. Revenues Expenditures Interest Fire Ins. Total Income Prem. Tax Revenues Pension Costs 2009 $ 121,107 $ 39,785 $ 160,892 $ 197,697 2008 $ 147,473 $ 41,723 $ 189,196 $ 201,727 2007 $ 292,828 $ 40,123 $ 332,951 $ 181,635 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 132 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. 60 Cit3i of Pasco, 'Washington 2000 Comprehensive AnnuaCginanciaCReport 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. (City does not participate in these programs; all is purchased through commercial broker as identified on this page). 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. Property, Inland Marina, boiler, machinery 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 $80,000 per individual. NOTE 9. SHORT-TERM DEBT The City does not currently have any short-term debt issuances in either governmental or proprietary activities. 61 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCReport NOTE 10. LONG-TERM DEBT A. Long-Term Debt The City issues general obligations and revenue bonds to finance capital improvements such as bridges, streets, municipal buildings and enterprise facilities such as water and sewer utilities. Bonded indebtedness has also been entered into (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: Interest Maturity Original Remaining Purpose Rate Date Amount Balance 1999 GOB Library Bond 4.50-5.50% 12/1/2019 $ 1,700,000 $ 1,000,000 2001 CLID 135 Bond 5.75% 11/2012 536,975 15,000 2001 LTGO Bond 2.00-4.70% 12/1/2020 6,900,000 5,015,000 2002 LTGO &Refunding 5.72% 4/1/2022 3,635,000 2,555,000 Bond 2002 UTGO Refunding Bond 2.50-4.00% 1 12/1/2013 1 3,155,000 1 1,375,000 Total $ 15,926,975 $ 9,960,000 The annual debt service requirements to maturity for general obligation bonds are as follows: Governmental Activities Business Type Activities Year Ended December 31 Principal Interest Principal Interest 2010 $ 1,005,000 $ 455,200 - - 2011 1,035,000 410,878 - - 2012 1,075,000 364,634 - - 2013 1,110,000 318,776 - - 2014-2018 3,815,000 997,330 - - 2019-2023 1,905,000 156,245 - - Total $ 9,960,000 $ 2,703,063 - - 62 City of Pasco, 'Washing ton 2009 Comprehensive AnnuafTinanciaCAeport The revenue bonds currently outstanding are as follows: Interest Maturity Original Bond Remaining Purpose Rate Date Amount Balance 1998 Water/Sewer Series A Bonds 5.50-6.45% 6/1/2018 $ 2,255,000 $ 1,420,000 1998 Water/Sewer Series B Bonds 3.80-4.60% 6/1/2014 6,725,000 4,120,000 1998 Water/Sewer Series C Bonds 3.70-4.80% 6/1/2014 1,515,000 315,000 1999 Water/Sewer Bonds 4.10-5.80% 9/1/2016 985,000 535,000 2001 Water/Sewer Bonds 3.50-4.85% 9/1/2016 995,000 435,000 2002 Water/Sewer Bonds 2.00-4.70% 12/1/2022 5,945,000 4,550,000 2005 Water/Sewer Bonds 3.50-4.25% 12/5/2025 4,400,000 3,900,000 2007 Water/Sewer Bonds 4.25-4.75% 9/01/2022 845,000 795,000 2009 Water/Sewer Bonds 3.00-4.75% 5/01/2029 10,045,000 10,045,000 Total $ 33,710,000 $ 24,710,000 Revenue bond debt service requirements to maturity are as follows: Year Ended December 31 Principal Interest 2010 $ 1,825,000 $ 1,042,812 2011 1,895,000 967,272 2012 1,855,000 891,143 2013 1,925,000 813,057 2014-2018 7,235,000 2,631,200 2019-2023 5,705,000 1,363,739 2024-2028 3,610,000 497,240 2029-2033 660,000 15,675 Total $ 245710,000 $ 8,222,138 Loan and Note obligations currently outstanding are as follows: Original Interest Maturity Bond Remaining Purpose Rate Date Amount Balance State LOCAL Loan—Animal Control 6.24% 12/1/2016 $ 275,500 $ 159,412 State LOCAL Loan—Computers 3.46786% 6/1/2013 200,000 176,111 TRAC Loan 4.50- 5.50% 12/1/2014 1,197,931 451,035 Port of Pasco Airport Fire Building 4.00% 7/12/2016 120,000 84,261 State Revolving Loan 1.00% 10/31/2015 23,700,000 14,4235946 PWTF Loan#9502—Sewer Plant 1.00% 6/30/2015 812,700 258,068 PWTF Loan#95026—Water Reservoir 1.00% 6/30/2015 2,687,300 644,252 PWTF Loan#691043 1.00% 6/30/2020 1,890,000 1,222,544 Total $ 30,883,431 $ 17,419,629 63 City of Pasco, 'Washington 20 o.A Comprehensive AnnuafTinanciaCAeport Loan and Note debt service requirements to maturity are as follows: Governmental Activities Business-T e Activities Year Ended December 31 Principal Interest Principal Interest 2010 $ 158,125 $ 40,264 $ 1,487,276 $ 515,454 2011 170,140 33,156 1,530,553 469,563 2012 173,497 25,431 1,575,358 422,143 2013 151,150 17,550 1,621,744 373,141 2014-2018 217,908 16,246 8,412,744 1,075,804 2019-2023 0 0 1,921,134 48,892 Total $ 870,820 $ 132,647 $ 16,548,809 $ 2,904,997 In proprietary funds, unamortized debt issue costs are recorded as deferred charges and bonds are displayed net of premium or discount; annual interest expense is decreased by amortization of debt premium and increased by the amortization of debt issue costs and discount. At December 31, 2009, the City has $319,727 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 toward the end of the year. Restricted assets in proprietary funds contain $1,059,761 in sinking funds and reserves as required by bond indentures. B. Refunded Debt The City did not issue any refunded debt during 2009. NOTE 11. LEASES The City does not currently have any capital or operating leases. 64 City of Pasco, Washington 200.9 Comprehensive AnnuafTinanciaCAeport NOTE 12. CHANGES IN LONG-TERM LIABILITIES During the year ended December 31, 2009, the following changes occurred in long-term liabilities: Beginning Ending Due Within Balance Balance One Year 01/01/09 Additions Reductions 12/31/09 Governmental Activities Bonds Payable: General obligation bonds, special assessment debt with $ 11,035,000 - $ 1,075,000 $ 9,960,000 $ 1,055,000 govt. commitment Loans and Notes 828,216 42,604 - 870,820 158,125 Compensated Absences 1,604,142 81,530 - 1,685,672 1,685,672 Governmental Activity Long-Term Liabilities $ 13,467,358 $ 124,134 $ 1,075,000 $ 12,516,492 $2,898,797 Business-Type Activities Bonds Payable: General obligation bonds,revenue bonds $ 16,070,000 $ 7,195,000 - $24,710,000 $ 1,825,000 Loans and Notes 18,055,847 0 1,507,038 16,548,809 1,487,276 Compensated Absences 137,630 14,416 - 152,046 152,046 Business-Type Activity Long-Term Liabilities $ 34,263,477 $ 7,209,416 $ 1,507,038 $41,410,855 $ 3,464,322 Internal Service funds are separate for governmental and proprietary activities. Long-term liabilities for them are included as part of the above totals under their respective activity. Compensated absences are included in the above amounts. Also, for the governmental activities, claims and judgments and compensated absences are generally liquidated by the general fund. NOTE 13. CONTINGENCIES AND LITIGATION The City has recorded in its financial statements all material liabilities, including applicable estimates for situations that are not yet resolved but where, based on available information, management believes it is probable that the City will have to make payment. In the opinion of management, the City's insurance policies and self-insurance reserves are adequate to pay all known or pending claims. As discussed in Note 10, the City is contingently liable for repayment of refunded debt. The City participates in a number of Federal and State assisted programs. These grants are subject to audit by the grantor or representative. Such audits could result in 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. 65 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCReport NOTE 14. RESTRICTED NET ASSETS The government-wide statement of net assets reports $3,551,107 of restricted net assets, of which $3,551,107 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. 66 Cit3j of Pasco, Washington 20 0g Comprehensive AnnuaCTinanciaCReport B. Interfund Loan Balances Interfund balances at December 31, 2009 were as follows: Due From All Other Purpose Funds Total ,, General Fund Start-up loans for new funds & negative cash balance loans $1,327,800 $1,327,800 Q Water/Sewer Fund LID loans & Equip Rental Op 15,062 15,062 All Other Funds LID and Capital Improvement loans 659,365 659,365 Total $ 2,002,227 $ 2,002,227 C. Interfund Transfers Interfund transfers at December 31, 2009 were as follows: Transfer From o General Water/Sewer All Other F- Fund Fund Funds Total General Fund $ 0 $ 0 $ 119,676 $ 119,676 Water/Sewer Fund 0 0 643,459 643,459 H All Other Funds 1,950,796 1,127,996 2,315,657 5,394,449 Total 1 $ 1,950,7961 $ 1,127,996 $ 3,078,792 1 $ 6,157,584 Interfund transfers are used to fund ongoing operations such as ambulance services, senior center activities, recreation activities, street repair and maintenance, and transfers between Local Improvement District funds and the Water/Sewer Fund. NOTE 16. RECEIVABLE AND PAYABLES BALANCES A. Receivables at December 31, 2009 were as follows: ACCOUNTS AMOUNTS Governmental Activities Taxes $ 417,987 Customer Accounts 2,506,935 Due from Other Funds 2,164 Interest Receivable 127,873 Other Receivables 5,937,834 Total Governmental Activities $8,992,793 Business-type Activities Utility Receivables $ 678,062 Other Receivables 333,036 Due from Other Funds 15,062 Interest Receivable 67,694 Total Business-type Activities $ 1,093,854 67 City of Pasco, 'Washington 2000 Comprehensive AnnuaCFinanciaCReport Special Assessment receivables represent $3,613,004 of the balance of outstanding Customer Accounts receivable at year end December 31, 2009. Of this amount $91,173 represents delinquent Special Assessments receivable. B. Payables at December 31, 2009, were as follows: ACCOUNTS AMOUNTS Governmental Activities Accounts Payable $ 1,312,203 Due to Other Govt. Units 90,808 Deposits Payable 420,182 Unclaimed Property 6,801 Other Payables 504,849 Claims Incurred Not Reported 550,000 Deferred Revenue 4,641,885 Due within One Year 2,732,534 Due in More than One Year 10,674,710 Total Governmental Activities $ 20,933,972 Business-type Activities Accounts Payable $ 947,467 Due to Other Govt. Units 49,702 Retainage Payable 150,202 Interest Payable 400,703 Deposits Payable 670,438 Deferred Revenue (156,918) Unclaimed Property 29,031 Due within One Year 3,064,082 Due in More than One Year $ 38,346,771 Total Business-type Activities $ 43,501,478 NOTE 17. SEGMENT INFORMATION The City's only Enterprise Fund is the Water/Sewer Fund. The services provided by this fund are water, sewer, process water reuse, storm water and irrigation operations. These services are not broken out into separate segments but are reported as one fund in the fund statements. NOTE 18. JOINT VENTURES A. Bi-County Police Information Network The Bi-County Police Information Network (BI-PIN) was established November 24, 1982, when an Interlocal Agreement was entered into by five participating municipal corporations, the cities of Kennewick, Pasco, and Richland, and Benton and Franklin Counties. BI-PIN was established to assist the participating police and sheriffs departments in the deterrence 68 City of Pasco, 'Washing ton 2000 Comprehensive AnnuaCginanciaCReport and solution of criminal incidents. BI-PIN is served by an Executive Committee composed of the City Manager of each of the cities and a member from each of the Boards of County Commissioners of Benton and Franklin Counties. A liaison from the Bi-County Chiefs and Sheriffs is an ex officio, non-voting member. The allocation of financial participation among the participating jurisdictions is based upon the approved budget for that year and is billed quarterly in advance to each agency. On dissolution of the Interlocal Agreement, the net assets will be shared based upon participant contribution. Effective January 1, 1992, the City of Kennewick assumed responsibility for the operation of the BI-PIN system. As the Operating Jurisdiction, the City provides all necessary support services for the operation of BI-PIN such as accounting, legal services, risk management and information systems. The total amount paid by BI-PIN in 2009 for these transactions was $118,999. The City of Pasco's equity interest in BI-PIN was $211,660 on December 31, 2009, 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 69 City of Pasco, 'WashiMton 20 o.A Comprehensive AnnuaCFinanciaCReport cities and the Sheriffs and Prosecuting Attorneys from the two counties, administers daily activity. Effective July 1, 2009, the City of Kennewick 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 $41,126 on June 30, 2009, which is reported as an investment in joint ventures in the government-wide statement of net assets. The change in equity is reflected in the government-wide statement of activities under Public Safety. The City does not anticipate any income distribution from Metro since charges are assessed only to recover anticipated expenses. Complete separate financial statements for Metro may be obtained from the City of Kennewick, Washington. D. Trade, Recreation,Agricultural Center In 1994 the City entered into an agreement with Franklin County for the Trade, Recreation, and Agricultural Center (TRAC). The City shares with Franklin County the expenses to operate and cover debt service. Franklin County handles all operating decisions and financial reporting for TRAC. Complete financial statements for TRAC may be obtained at Franklin County,1016 N. 4th Avenue, Pasco, Washington. For calendar year 2009, the City of Pasco paid Franklin County $301,665 in operating expenses and $101,745 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. 70 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCReport 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 Obli!ation 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 44 LEOFF plan 1 members. Thirty-nine of those members are retired and 5 are still active employees. Six of those 39 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 2008 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 $3,111,039. As of December 31, 2009, the fund had assets of$3,565,410. Performing the valuation for the remaining 33 members, it is determined the Unfunded Actuarial Accrued Liability (UAAL) is $12,488,924. 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 $416,297. During 2009, the City made payments totaling $367,014 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. 71 City of Pasco, 'Washington 20 o.A Comprehensive AnnuaCFinanciaCReport 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 party claims asserted against Pasco with respect to the implementation and enforcement of the Institutional Controls Program. NOTE 21. TERMINATION BENEFITS The City currently does not have an inducement program to hasten the termination of an employee's services or ask for voluntary terminations. Upon termination, an employee is paid 100% of their 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 Adiustments Prior period adjustments consist of the following: An adjustment of$42,654 was made to the General Fund for revenues from the golf course that were included in the 2008 CAFR but received in 2009. Consideration was given to the fact that the revenues should have been received on a timely basis. All Other Governmental Funds had a total an adjustment of$213 which is considered immaterial. A net increase in adjustments totaling $6,174,647 for the Business-Type Funds was a direct result of fixed assets. Fixed asset General Ledger balances were brought in line with a reconciliation of past and present data. 72 City of Pasco, Washington 20 0g Comprehensive AnnuaCTinanciaCReport 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. 73 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCReport This page is intentionally left blank 74 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCAeport COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 75 City of Pasco, Washington 2009 Comprehensive AnnualginancialR.eport Budget to Actual GENERALFUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 22,645,000 $ 22,645,000 $ 22,614,629 $ (30,371) $ (30,371) Licenses&Permits 1,009,300 1,009,300 1,586,917 577,617 577,617 Intergovernmental Revenue 1,327,300 1,327,300 1,852,035 524,735 524,735 Charges for Services 2,788,800 2,788,800 2,839,213 50,413 50,413 Fines&Forfeitures 982,400 982,400 1,012,084 29,684 29,684 Investment Income 299,000 299,000 249,769 (49,231) (49,231) Miscellaneous Revenue 487,800 487,800 581,939 94,139 94,139 Total Revenues 29,539,600 29,539,600 30,736,586 1,196,986 1,196,986 EXPENDITURES Current: General Government 5,383,975 5,423,975 4,924,210 459,765 499,765 Judicial 835,100 877,650 922,376 (87,276) (44,726) Public Safety 16,001,493 16,004,743 16,327,460 (325,967) (322,717) Physical Environment 1,739,560 1,834,860 1,805,054 (65,494) 29,806 Transportation - - - - Health and Human Services 10,000 10,000 12,400 (2,400) (2,400) Economic Environment 410,025 430,025 478,957 (68,932) (48,932) Culture and Recreation 3,782,765 3,782,765 3,771,508 11,257 11,257 Capital Outlay 2,126,200 2,126,200 1,180,315 945,886 945,886 Debt Service Principal 501,025 501,025 657,732 (156,707) (156,707) Interest 348,650 348,650 227,655 120,995 120,995 Total Expenditures 31,138,793 31,339,893 30,307,667 831,126 1,032,226 Excess of Revenues Over(Under)Expenditures (1,599,193) (1,800,293) 428,919 2,028,112 2,229,212 OTHER FINANCING SOURCES(USES) Disposition of Capital Assets 2,000 2,000 - (2,000) (2,000) Proceeds of General L-T Debt 1,000 1,000 - (1,000) (1,000) Insurance Recoveries/other revenues 1,000 1,000 212,312 211,312 211,312 Transfers-In 1,138,000 1,138,000 119,676 (1,018,324) (1,018,324) Transfers-(Out) (1,918,275) (3,512,475) (1,950,796) (32,521) 1,561,679 Total Other Financing Sources(Uses) (776,275) (2,370,475) (1,618,808) (842,533) 751,667 Net Change in Fund Balances (2,375,468) (4,170,768) (1,189,889) 1,185,579 2,980,879 Prior Period Adjustments - - 42,654 42,654 42,654 Fund Balance Beginning 6,500,000 6,500,000 10,962,088 4,462,088 4,462,088 Fund Balance,Ending $ 4,124,532 $ 2,329,232 $ 9,814,853 $ 5,690,321 $ 7,485,621 See accompanying notes to the basic financial statements. 76 City of Pasco, 'Washington 20 0g Comprehensive AnnuaCTinanciaCPeport Schedule of Operations-Budget to Actuals Budget to Actual WATER/SEWER FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget OPERATING REVENUES Charges for Services-Other $ 14,375,000 $ 14,375,000 $ 15,083,562 $ 708,562 $ 708,562 Miscellaneous Revenue 1,820,000 1,820,000 1,789,325 (30,675) (30,675) Total Operating Revenues 16,195,000 16,195,000 16,872,887 677,887 677,887 OPERATING EXPENSES Personal Service 3,571,675 3,571,675 3,614,536 (42,861) (42,861) Supplies 897,900 897,900 481,446 416,454 416,454 Other Services and Charges 3,619,175 3,619,175 3,688,850 (69,675) (69,675) Capital Outlays 326,000 326,000 - 326,000 326,000 Taxes 1,883,500 1,883,500 2,070,525 (187,025) (187,025) Maintenance Expenses - - - Depreciation - - 4,622,319 (4,622,319) (4,622,319) Total Operating Expenses 10,298,250 10,298,250 14,477,676 (4,179,426) (4,179,426) OPERATING INCOME(LOSS) 5,896,750 5,896,750 2,395,211 (3,501,539) (3,501,539) NON-OPERATING REVENUES(EXPENSES) Investment Income 401,000 401,000 359,270 (41,730) (41,730) Farmland Rentals 675,000 675,000 948,870 273,870 273,870 Interest Expense (1,270,765) (1,270,765) (1,628,772) (358,007) (358,007) Amortization Expense - - (51,031) (51,031) (51,031) Miscellaneous Non-Operating Revenues 26,000 26,000 269,672 243,672 243,672 Total Non-Operating Revenues(Expenses) (168,765) (168,765) (101,991) 66,774 66,774 Income(Loss)before Contributions and Transfers 5,727,985 5,727,985 2,293,220 (3,434,765) (3,434,765) Capital Contributions - - 3,011,986 3,011,986 3,011,986 Transfers In(Out) 176,000 176,000 (484,537) (660,537) (660,537) Changes in Net Assets 5,903,985 5,903,985 4,820,669 (1,083,316) (1,083,316) Prior Year Adjustments - - 6,174,647 6,174,647 6,174,647 NET ASSETS-BEGINNING 14,319,955 14,319,955 113,808,868 99,488,913 99,488,913 NET ASSETS-ENDING $ 20,223,940 $ 20,223,940 $ 124,804,184 $ 104,580,244 $ 104,580,244 See accompanying notes to the basic financial statements. 77 City of Pasco, Washington 2009 Comprehensive AnnualginancialR.eport Comprehensive Annual Financial Report Combining Balance Sheet Non-Major Special Revenue Funds December 31,2009 Community City Arterial I-182 Traffic Street Development Street Street Impact Overlay Block Grant Fund Fund Fund Fund Fund ASSETS Current Cash&Cash Equivalents $ 169,032 $ 10,535 $ 463,004 $ 1,568,748 $ 1,437 Receivables(net of allowances) Taxes - - - 66,129 - Customer Accounts 18,886 40,000 - - 139,800 Interfund Loans Receivable - 460 120,000 - - Interest Receivable 462 (2,830) 2,832 7,558 (458) Other Receivables 210,785 65,555 - - 179,277 TOTAL ASSETS 399,165 113,720 585,836 1,642,435 320,056 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable 116,312 168,292 - - 111,000 Bank Overdraft - - - - - Interfund Loans Payable - 1,120,000 - - 200,000 Due to Other Governmental Units - - - - - Bonds,Notes, Loans Payable - - - - - Deferred Revenue - - - - - Other 3,829 5,112 - 67,989 4,028 Total Liabilities 120,141 1,293,404 - 67,989 315,028 Fund Balances Reserved for: Advances to Other Funds - 460 120,000 - - Debt Service - - - - - Capital Improvements - - - - - Other Reserves - - - - - Unreserved, Reported in: Special Revenue Funds 279,024 (1,180,144) 465,836 1,574,446 5,028 Debt Service Funds - - - - - Capital Project Funds - - - - - Total Fund Balances 279,024 (1,179,684) 585,836 1,574,446 5,028 TOTAL LIABILITIES AND FUND BALANCES $ 399,165 $ 113,720 $ 585,836 $ 1,642,435 $ 320,056 See accompanying notes to the basic financial statements. Continued on next page 78 City of Pasco. tiVashington 2009 Comprehensive AnnualginancialR.eport Comprehensive Annual Financial Report Combining Balance Sheet Non-Major Special Revenue Funds December 31,2009 M.L.King Community Ambulance City View Athletic Center Services Contingency Cemetery Program Fund Fund Fund Fund Fund ASSETS Current Cash&Cash Equivalents $ 18,916 $ 217 $ 168,402 $ 61,434 $ 72,087 Receivables(net of allowances) Taxes - - - - - Customer Accounts (1,920) 350,983 - 7,376 - Interfund Loans Receivable - - - - - Interest Receivable 38 (226) 833 240 344 Other Receivables - - - - - TOTAL ASSETS 17,034 350,974 169,235 69,050 72,431 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable 5,113 16,173 - 1,373 3,163 Bank Overdraft - - - - - Interfund Loans Payable 4,000 92,000 - 100,000 - Due to Other Governmental Units - - - 255 - Bonds,Notes, Loans Payable - - - - - Deferred Revenue - - - - - Other 193 - - - - Total Liabilities 9,306 108,173 - 101,628 3,163 Fund Balances Reserved for: Advances to Other Funds - - - - - Debt Service - - - - - Capital Improvements - - - - - Other Reserves - - 26,644 - - Unreserved, Reported in: Special Revenue Funds 7,728 242,801 142,591 (32,578) 69,268 Debt Service Funds - - - - - Capital Project Funds - - - - - Total Fund Balances 7,728 242,801 169,235 (32,578) 69,268 TOTAL LIABILITIES AND FUND BALANCES $ 17,034 $ 350,974 $ 169,235 $ 69,050 $ 72,431 See accompanying notes to the basic financial statements. Continued on next page 79 City of Pasco. tiVashington 2009 Comprehensive AnnualginancialR.eport Comprehensive Annual Financial Report Combining Balance Sheet Non-Major Special Revenue Funds December 31,2009 Rivershore Trail Special Senior Multi-Modal & Marina Lodging Center Facility Bi-Centennial Maintenance Assessment Fund Fund Fund Fund Fund ASSETS Current Cash&Cash Equivalents $ 36,458 $ 25,080 $ 6,104 $ 7,027 32,426 Receivables(net of allowances) Taxes - - - - - Customer Accounts 1,333 (2,003) - 3,554 - Interfund Loans Receivable - - - - - Interest Receivable 168 120 30 31 95 Other Receivables - - - - 23,167 TOTAL ASSETS 37,959 23,197 6,134 10,612 55,688 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable 7,954 5,304 - 781 28,179 Bank Overdraft - - - - - Interfund Loans Payable - - - - - Due to Other Governmental Units 165 554 - (131) - Bonds, Notes, Loans Payable - - - - - Deferred Revenue 1,870 - - - - Other 925 2,200 - - - Total Liabilities 10,914 8,058 - 650 28,179 Fund Balances Reserved for: Advances to Other Funds - - - - - Debt Service - - - - - Capital Improvements - - - - - Other Reserves - - - - - Unreserved, Reported in: Special Revenue Funds 27,045 15,139 6,134 9,962 27,509 Debt Service Funds - - - - - Capital Project Funds - - - - - Total Fund Balances 27,045 15,139 6,134 9,962 27,509 TOTAL LIABILITIES AND FUND BALANCES $ 37,959 $ 23,197 $ 6,134 $ 10,612 $ 55,688 See accompanying notes to the basic financial statements. Continued on next page 80 City of Pasco, Washington 2009 Comprehensive AnnualginancialR.eport Comprehensive Annual Financial Report Combining Balance Sheet Non-Major Special Revenue Funds December 31,2009 T.R.A.C. Litter Revolving Development Park Capital Abatement Abatement &Operating Development Improvements Fund Fund Fund Fund Fund ASSETS Current Cash&Cash Equivalents $ 12,725 $ 196,051 $ 128,603 $ 1,936,316 $ 4,119,149 Receivables(net of allowances) Taxes - - - - - Customer Accounts (1,599) 138,943 - - - Interfund Loans Receivable - - - - - Interest Receivable 61 902 233 9,551 20,245 Other Receivables - - 25,852 - 56,921 TOTAL ASSETS 11,187 335,896 154,688 1,945,867 4,196,315 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable 1,680 94 12,926 - - Bank Overdraft - - - - - Interfund Loans Payable - - - - - Due to Other Governmental Units - - - - - Bonds, Notes, Loans Payable - - - - - Deferred Revenue - - - - - Other - - - 4,072 - Total Liabilities 1,680 94 12,926 4,072 - Fund Balances Reserved for: Advances to Other Funds - - - - - Debt Service - - - - - Capital Improvements - - - - - Other Reserves - - - - - Unreserved, Reported in: Special Revenue Funds 9,507 335,802 141,762 1,941,795 4,196,315 Debt Service Funds - - - - - Capital Project Funds - - - - - Total Fund Balances 9,507 335,802 141,762 1,941,795 4,196,315 TOTAL LIABILITIES AND FUND BALANCES $ 11,187 $ 335,896 $ 154,688 $ 1,945,867 $4,196,315 See accompanying notes to the basic financial statements. 81 City of Pasco. tiVashington 2009 Comprehensive AnnualginancialR.eport Comprehensive Annual Financial Report Combining Balance Sheet Non-Major Special Revenue Funds December 31,2009 Industrial Stadium/ Development Convention & Infrastructure Center Fund Fund TOTALS ASSETS Current Cash&Cash Equivalents $ 664,109 $ 19,179 $ 9,717,039 Receivables(net of allowances) Taxes - - 66,129 Customer Accounts 42,194 - 737,547 Interfund Loans Receivable - - 120,460 Interest Receivable 3,292 (28) 43,493 Other Receivables - 25,852 587,409 TOTAL ASSETS 709,595 45,003 11,272,077 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable - 13,212 491,556 Bank Overdraft - - - InterFund Loans Payable - 15,000 1,531,000 Due to Other Governmental Units - - 843 Bonds, Notes, Loans Payable - - - Deferred Revenue - - 1,870 Other - 920 89,268 Total Liabilities - 29,132 2,114,537 Fund Balances Reserved for: Advances to Other Funds - - 120,460 Debt Service - - - Capital Improvements - - - Other Reserves - - 26,644 Unreserved, Reported in: Special Revenue Funds 709,595 15,871 9,010,436 Debt Service Funds - - - Capital Project Funds - - - Total Fund Balances 709,595 15,871 9,157,540 TOTAL LIABILITIES AND FUND BALANCES $ 709,595 $ 45,003 $ 11,272,077 See accompanying notes to the basic financial statements. 82 City of Pasco. Washington 2009 Comprehensive AnnualginancialR.eport Comprehensive Annual Financial Report Combining Balance Sheet Non-Major Debt Service Funds December 31,2009 1999 Library/ 2002 Local Improv. All Other Fire Station Unl.Tax G.O. District Local Improv. Bonds Refunding Bonds Guaranty District Fund Fund Fund Funds TOTALS ASSETS Current Cash&Cash Equivalents $ 93,898 $ 225,829 $ 946,680 $ 904,288 $ 2,170,695 Receivables(net of allowances) Taxes 8,263 21,169 - - 29,432 Customer Accounts - - - 289,813 289,813 Interfund Loans Receivable - - - - Interest Receivable 762 1,917 8,694 5,968 17,341 Other Receivables - - - 3,323,460 3,323,460 TOTAL ASSETS 102,923 248,915 955,374 4,523,529 5,830,741 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable - - - 34,054 34,054 Bank Overdraft - - - - - Interfund Loans Payable - - - 471,227 471,227 Due to Other Governmental Units - - - - - Bonds,Notes, Loans Payable - - - 35,000 35,000 Deferred Revenue - - - 3,323,460 3,323,460 Other - - - - - Total Liabilities - - - 3,863,741 3,863,741 Fund Balances Reserved for: Advances to Other Funds - - - - - Debt Service - - - 659,788 659,788 Capital Improvements - - - - - Other Reserves - - - - - Unreserved, Reported in: Special Revenue Funds - - - - - Debt Service Funds 102,923 248,915 955,374 - 1,307,212 Capital Project Funds - - - - - Total Fund Balances 102,923 248,915 955,374 659,788 1,967,000 TOTAL LIABILITIES AND FUND BALANCES $ 102,923 $ 248,915 $ 955,374 $ 4,523,529 $ 5,830,741 See accompanying notes to the basic financial statements. 83 City of Pasco. Washington 2009 Comprehensive AnnualginancialR.eport Comprehensive Annual Financial Report Combining Balance Sheet Non-Major Capital Projects Funds December 31,2009 Capital Projects LID Construction Construction Fund Fund TOTALS ASSETS Current Cash&Cash Equivalents $ 614,619 $ (816,427) $ (201,808) Receivables(net of allowances) Taxes - - - Customer Accounts - - - InterFund Loans Receivable - - - Interest Receivable - (3,548) (3,548) Other Receivables - - - TOTAL ASSETS 614,619 (819,975) (205,356) LIABILITIES AND FUND BALANCES Liabilities Accounts Payable 228,207 155,998 384,205 Bank Overdraft - - - Interfund Loans Payable - - - Due to Other Governmental Units - - - Bonds, Notes, Loans Payable - - - Deferred Revenue - - - Other 26,527 39,054 65,581 Total Liabilities 254,734 195,052 449,786 Fund Balances Reserved for: Advances to Other Funds - - - Debt Service - - - Capital Improvements - - - Other Reserves - - - Unreserved, Reported in: Special Revenue Funds - - - Debt Service Funds - - - Capital Project Funds 359,885 (1,015,027) (655,142) Total Fund Balances 359,885 (1,015,027) (655,142) TOTAL LIABILITIES AND FUND BALANCES $ 614,619 $ (819,975) $ (205,356) See accompanying notes to the basic financial statements. 84 City of Pasco. Washington 2009 Comprehensive AnnualginancialR.eport Comprehensive Annual Financial Report Combining Balance Sheet Non-Major Permanent Funds December 31,2009 City View City View Boulevard Cemetery Cemetery Perpetual Landfill Trust Pre-Need Trust Maintenance Remediation Fund Fund Fund Fund TOTALS ASSETS Current Cash&Cash Equivalents $ 368,415 $ 88,252 $ 1,479,829 $ 390,825 $ 2,327,321 Receivables(net of allowances) Taxes - - - - - Customer Accounts 780 1,433 - - 2,213 Interfund Loans Receivable - - - - - Interest Receivable 1,866 445 7,465 1,934 11,710 Other Receivables - - - - - TOTAL ASSETS 371,061 90,130 1,487,294 392,759 2,341,244 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable - - - - - Bank Overdraft - - - - - Interfund Loans Payable - - - - - Due to Other Governmental Units - - - - - Bonds, Notes, Loans Payable - - - - - Deferred Revenue - - - - - Other - - - 350,000 350,000 Total Liabilities - - - 350,000 350,000 Fund Balances Reserved for: Advances to Other Funds - - - - - Debt Service - - - - - Capital Improvements - - - - - Other Reserves 371,061 90,130 1,487,294 42,759 1,991,244 Unreserved, Reported in: Special Revenue Funds - - - - - Debt Service Funds - - - - - Capital Project Funds - - - - - Total Fund Balances 371,061 90,130 1,487,294 42,759 1,991,244 TOTAL LIABILITIES AND FUND BALANCES $ 371,061 $ 90,130 $ 1,487,294 $ 392,759 $ 2,341,244 See accompanying notes to the basic financial statements. 85 City of Pasco. Washington 2009 Comprehensive AnnualginancialR.eport Comprehensive Annual Financial Report Combining Balance Sheet Other Governmental Funds December 31,2009 2009 2008 Total Other Total Other Governmental Governmental Funds Funds ASSETS Current Cash&Cash Equivalents $ 14,013,247 $14,808,081 Receivables(net of allowances) Taxes 95,561 107,268 Customer Accounts 1,029,573 5,270,983 Interfund Loans Receivable 120,460 1,100 Interest Receivable 68,996 75,962 Other Receivables 3,910,869 489,260 TOTAL ASSETS 19,238,706 20,752,654 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable 909,815 460,029 Bank Overdraft - 1,768,775 Interfund Loans Payable 2,002,227 634,900 Due to Other Governmental Units 843 905 Bonds, Notes, Loans Payable 35,000 120,000 Deferred Revenue 3,325,330 4,333,714 Other 504,849 501,095 Total Liabilities 6,778,064 7,819,418 Fund Balances Reserved for: Advances to Other Funds 120,460 1,100 Debt Service 659,788 2,073,622 Capital Improvements - - Other Reserves 2,017,888 1,815,716 Unreserved, Reported in: Special Revenue Funds 9,010,436 9,871,589 Debt Service Funds 1,307,212 921,004 Capital Project Funds (655,142) (1,749,795) Total Fund Balances 12,460,642 12,933,236 TOTAL LIABILITIES AND FUND BALANCES $ 19,238,706 $20,752,654 See accompanying notes to the basic financial statements. 86 City of Pasco, Washington 2009 Comprehensive AnnualginanciaCPeport Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2009 Special Revenue Funds 110 120 125 130 140 City Street Arterial Street 1-182 Impact Street Overlay Comm.Dev. REVENUES Fund Fund Fund Fund Block Grant Taxes 207,082 - - 830,103 - Licenses&Permits 272,869 - - - - Intergovernmental Revenue 803,118 427,048 - - 606,758 Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income 3,251 (9,767) 12,923 42,702 374 Miscellaneous Revenue 11,996 62,870 324,387 - 10,425 Total Revenues 1,298,316 480,151 337,310 872,805 617,557 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - 48,000 Physical Environment - - - - - Transportation 1,512,044 - - - - Health and Human Services - - - - - Economic Environment - - - - 150,629 Culture and Recreation - - - - - Capital Outlay - 2,136,932 - 1,433,823 411,436 Debt Service Principal - - - - - Interest - - - - - Total Expenditures 1,512,044 2,136,932 - 1,433,823 610,065 Excess of Revenues Over(Under)Expenditures (213,728) (1,656,781) 337,310 (561,018) 7,492 OTHER FINANCING SOURCES (USES) Insurance Recoveries/sale of assets 1,409 37,771 - - - Operating Transfers-In 215,000 141,100 - - - Operating Transfers-(Out) - - (62,313) - (80,000) Total Other Financing Sources(Uses) 216,409 178,871 (62,313) - (80,000) Net Change in Fund Balances 2,681 (1,477,910) 274,997 (561,018) (72,508) Prior Year Adjustments - - - - - Fund Balance Beginning 276,343 298,226 310,839 2,135,464 77,536 Fund Balance,Ending 279,024 (1,179,684) 585,836 1,574,446 5,028 See accompanying notes to the basic financial statements. 87 City of Pasco, Washington 2009 Comprehensive AnnualginanciaCPxport Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2009 Special Revenue Funds 145 150 155 160 165 MILK Comm. Ambulance Contingency Cemetery Athletic REVENUES Center Fund Fund Fund Fund Taxes - - - - - Licenses&Permits - - - - - Intergovernmental Revenue - 1,726 - - - Charges for Services 3,890 1,811,945 - 213,890 91,348 Fines&Forfeitures - - - - - Investment Income 125 (1,504) 4,624 2,620 1,654 Miscellaneous Revenue 28,634 9,250 - 557 - Total Revenues 32,649 1,821,417 4,624 217,067 93,002 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - 2,042,974 - - - Physical Environment - - - 248,041 - Transportation - - - - - Health and Human Services - - - - - Economic Environment - - - - - Culture and Recreation 146,426 - - - 91,486 Capital Outlay - - - - - Debt Service - Principal - - - - - Interest - - - - - Total Expenditures 146,426 2,042,974 - 248,041 91,486 Excess of Revenues Over(Under)Expenditures (113,777) (221,557) 4,624 (30,974) 1,516 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Operating Transfers-In 105,900 420,000 - 21,741 - Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 105,900 420,000 - 21,741 - Net Change in Fund Balances (7,877) 198,443 4,624 (9,233) 1,516 Prior Year Adjustments - - - - (47) Fund Balance Beginning 15,605 44,358 164,611 (23,345) 67,799 Fund Balance, Ending 7,728 242,801 169,235 (32,578) 69,268 See accompanying notes to the basic finar Continued on next page. 88 City of Pasco, Washington 2009 Comprehensive AnnualginanciaCPeport Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2009 Special Revenue Funds 170 180 181 185 188 Senior Multi-Modal Bi-Centennial Rivershore Trail Spec.Lodging REVENUES Center Facility Fund Fund Fund Taxes - - - - 193,950 Licenses&Permits - - - - - Intergovernmental Revenue 29,119 - - - - Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income 571 568 167 237 469 Miscellaneous Revenue 42,680 62,239 - 11,850 - Total Revenues 72,370 62,807 167 12,087 194,419 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - 54,364 - - - Health and Human Services 46,117 - - - - Economic Environment - - - - 191,118 Culture and Recreation 233,450 - - 12,619 - Capital Outlay - - - - - Debt Service Principal - - - - - Interest - - - - - Total Expenditures 279,567 54,364 - 12,619 191,118 Excess of Revenues Over(Under)Expenditures (207,197) 8,443 167 (532) 3,301 OTHER FINANCING SOURCES (USES) Insurance Recoveries - - - - - Operating Transfers-In 219,500 - - - - Operating Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 219,500 - - - - Net Change in Fund Balances 12,303 8,443 167 (532) 3,301 Prior Year Adjustments (100) - - - - Fund Balance Beginning 14,842 6,696 5,967 10,494 24,208 Fund Balance,Ending 27,045 15,139 6,134 9,962 27,509 See accompanying notes to the basic financial statements. 89 City of Pasco. Washington 2009 Comprehensive AnnualginanciaCPxport Combining Statement of Revenues, Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2009 Special Revenue Funds 189 190 191 192 193 Litter Revolving TRAC Dev.& Park Capital REVENUES Abatement Abatement Operating Fund Fund Improvement Taxes - - 219,769 - 522,034 Licenses&Permits - - - - - Intergovernmental Revenue - - - - - Charges for Services 5,000 109,974 - 182,553 - Fines&Forfeitures - 50,753 - - - Investment Income 329 5,882 1,059 52,748 107,716 Miscellaneous Revenue 7,500 20,021 - - - Total Revenues 12,829 186,630 220,828 235,301 629,750 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment 13,265 - - - - Transportation - - - - - Health and Human Services - - - - - Economic Environment - 123,330 - - - Culture and Recreation - - 301,664 - - Capital Outlay - - 93,424 2,926 Debt Service Principal - - 76,552 - - Interest - - 25,193 - - Total Expenditures 13,265 123,330 403,409 93,424 2,926 Excess of Revenues Over(Under)Expenditures (436) 63,300 (182,581) 141,877 626,824 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Operating Transfers-(In) - - 196,700 - - OperatingTransfers-(Out) - - - (417) (1,114) Total Other Financing Sources(Uses) - - 196,700 (417) (1,114) Net Change in Fund Balances (436) 63,300 14,119 141,460 625,710 Prior Year Adjustments - - - - - Fund Balance Beginning 9,943 272,502 127,643 1,800,335 3,570,605 Fund Balance,Ending 9,507 335,802 141,762 1,941,795 4,196,315 See accompanying notes to the basic financial statements. 90 City o f Pasco. tiVashington 2009 Comprehensive AnnualginanciaCPxport Combining Statement of Revenues, Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2009 Special Revenue Funds 194 195 Indust. Devel. Stadium/ REVENUES & Infrastructure Conv.Center TOTALS Taxes - 219,770 2,192,708 Licenses&Permits - - 272,869 Intergovernmental Revenue 85,793 193,590 2,147,152 Charges for Services - - 2,418,600 Fines& Forfeitures - - 50,753 Investment Income 17,885 1,242 245,875 Miscellaneous Revenue - 15,754 608,163 Total Revenues 103,678 430,356 7,936,120 EXPENDITURES Current: General Government - - - Judicial - - - Public Safety - - 2,090,974 Physical Environment - - 261,306 Transportation - - 1,566,408 Health and Human Services - - 46,117 Economic Environment - - 465,077 Culture and Recreation - 112,588 898,233 Capital Outlay 29,461 - 4,108,002 Debt Service Principal - 100,000 176,552 Interest - 26,950 52,143 Total Expenditures 29,461 239,538 9,664,812 Excess of Revenues Over(Under)Expenditures 74,217 190,818 (1,728,692) OTHER FINANCING SOURCES (USES) Insurance Recoveries - - 39,180 Operating Transfers-(In) - - 1,319,941 Operating Transfers-(Out) - (201,589) (345,433) Total Other Financing Sources(Uses) - (201,589) 1,013,688 Net Change in Fund Balances 74,217 (10,771) (715,004) Prior Year Adjustments - - (147) Fund Balance Beginning 635,378 26,642 9,872,691 Fund Balance, Ending 709,595 15,871 9,157,540 See accompanying notes to the basic financial statements. 91 City of Pasco, Washington 200,9 Comprehensive AnnualginancialR.eport Combining Statement of Revenues, Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2009 Debt Service Funds 272 273 625 709-797 Library/Fire 2002 UTGO LID LID REVENUES Station Bonds Bonds Guaranty Assessments Total Taxes 153,521 379,270 - - 532,791 Licenses&Permits - - - - - Intergovernmental Revenue - - - 41,584 41,584 Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income 4,180 9,737 44,715 33,052 91,684 Miscellaneous Revenue - - - 1,017,476 1,017,476 Total Revenues 157,701 389,007 44,715 1,092,112 1,683,535 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - 13 - 13 Transportation - - - - - Health and Human Services - - - - - Economic Environment - - - - - Culture and Recreation - - - - - Capital Outlay - - - - - Debt Service - Principal 100,000 315,000 - - 415,000 Interest 60,257 66,632 - 6,706 133,595 Total Expenditures 160,257 381,632 13 6,706 548,608 Excess of Revenues Over(Under)Expenditures (2,556) 7,375 44,702 1,085,406 1,134,927 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Operating Transfers-(In) - - - - - Operating Transfers-(Out) - - (809,887) (1,353,025) (2,162,912) Total Other Financing Sources(Uses) - - (809,887) (1,353,025) (2,162,912) Net Change in Fund Balances (2,556) 7,375 (765,185) (267,619) (1,027,985) Prior Year Adjustments (31) 391 - - 360 Fund Balance Beginning 105,510 241,149 1,720,559 927,407 2,994,625 Fund Balance, Ending 102,923 248,915 955,374 659,788 1,967,000 See accompanying notes to the basic financial statements. 92 City of Pasco, Washington 2009 Comprehensive AnnualginanciaCPeport Combining Statement of Revenues, Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2009 Capital Projects Funds 367 700 General Purpose LID REVENUES Construction Construction Total Taxes - - - Licenses& Permits - - - Intergovernmental Revenue - - - Charges for Services - - - Fines& Forfeitures - - - Investment Income - (29,518) (29,518) Miscellaneous Revenue - - - Total Revenues - (29,518) (29,518) EXPENDITURES Current: General Government - - - Judicial - - - Public Safety - - - Physical Environment - - - Transportation - - - Health and Human Services - - - Economic Environment - - - Culture and Recreation - - - Capital Outlay 1,448,554 980,440 2,428,994 Debt Service Principal - - - Interest - - - Total Expenditures 1,448,554 980,440 2,428,994 Excess of Revenues Over(Under)Expenditures (1,448,554) (1,009,958) (2,458,512) OTHER FINANCING SOURCES (USES) Insurance Recoveries - - - Operating Transfers-(In) 1,715,604 1,837,562 3,553,166 Operating Transfers-(Out) - - - Total Other Financing Sources(Uses) 1,715,604 1,837,562 3,553,166 Net Change in Fund Balances 267,050 827,604 1,094,654 Prior Year Adjustments - - - Fund Balance Beginning 92,835 (1,842,631) (1,749,796) Fund Balance, Ending 359,885 (1,015,027) (655,142) See accompanying notes to the basic financial statements. Continued on next page. 93 City of Pasco, Washington 2009 Comprehensive AnnualginancialR.eport Combining Statement of Revenues, Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2009 Permanent Fund 605 606 610 621 Cemetery Cemetery Blvd. Perpetual Landfill REVENUES Perpetual Care Pre-Need Fund Maint. Fund Remediation Total Taxes - - - - - Licenses&Permits - - - - - Intergovernmental Revenue - - - - - Charges for Services 13,685 13,949 - - 27,634 Fines&Forfeitures - - - - - Investment Income 9,525 2,218 37,363 9,948 59,054 Miscellaneous Revenue - - 137,900 46 137,946 Total Revenues 23,210 16,167 175,263 9,994 224,634 EXPENDITURES Current: General Government - - - - - Judicial - - - - - Public Safety - - - - - Physical Environment - - - - - Transportation - - - - - Health and Human Services - - - - - Economic Environment - - - - - Culture and Recreation - - - - - Capital Outlay - - - - - Debt Service - Principal - - - - - Interest - - - - - Total Expenditures - - - - - Excess of Revenues Over(Under)Expenditures 23,210 16,167 175,263 9,994 224,634 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Operating Transfers-(In) - - - - - Operating Transfers-(Out) (9,524) (2,217) (37,364) - (49,105) Total Other Financing Sources(Uses) (9,524) (2,217) (37,364) - (49,105) Net Change in Fund Balances 13,686 13,950 137,899 9,994 175,529 Prior Year Adjustments - - - - - Fund Balance Beginning 357,375 76,180 1,349,395 32,765 1,815,715 Fund Balance, Ending 371,061 90,130 1,487,294 42,759 1,991,244 See accompanying notes to the basic financial statements. 94 City of Pasco, Washington 200P Comprehensive AnnualginanciaCPeport Combining Statement of Revenues, Expenditures,and Changes in Fund Balances Other Governmental Funds For the Year Ended December 31,2009 2009 2008 Total Other Total Other Governmental Governmental REVENUES Funds Funds Taxes 2,725,499 2,746,707 Licenses& Permits 272,869 250,739 Intergovernmental Revenue 2,188,736 3,212,074 Charges for Services 2,446,234 2,044,253 Fines& Forfeitures 50,753 36,271 Investment Income 367,095 546,499 Miscellaneous Revenue 1,763,585 863,375 Total Revenues 9,814,771 9,699,918 EXPENDITURES Current: General Government - - Judicial - - Public Safety 2,090,974 2,089,859 Physical Environment 261,319 256,394 Transportation 1,566,408 1,536,157 Health and Human Services 46,117 42,169 Economic Environment 465,077 344,936 Culture and Recreation 898,233 747,034 Capital Outlay 6,536,996 6,243,922 Debt Service Principal 591,552 574,483 Interest 185,738 213,415 Total Expenditures 12,642,414 12,048,369 Excess of Revenues Over(Under)Expenditures (2,827,643) (2,348,451) OTHER FINANCING SOURCES (USES) Insurance Recoveries 39,180 75 Operating Transfers-(In) 4,873,107 5,011,193 Operating Transfers-(Out) (2,557,450) (2,452,069) Total Other Financing Sources(Uses) 2,354,837 2,559,199 Net Change in Fund Balances (472,806) 210,748 Prior Year Adjustments 213 2,595 Fund Balance Beginning 12,933,235 12,719,892 Fund Balance, Ending 12,460,642 12,933,235 See accompanying notes to the basic financial statements. 95 City of Pasco, Washington 2009 Comprehensive AnnualginanciaCPxport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual CITY STREET FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 199,000 199,000 $ 207,082 $ 8,082 $ 8,082 Licenses&Permits 216,000 216,000 272,869 56,869 56,869 Intergovernmental Revenue 790,000 790,000 803,118 13,118 13,118 Charges for Services - - - - - Fines&Forfeitures - - - - - Investment Income 2,000 2,000 3,251 1,251 1,251 Miscellaneous Revenue 200 200 11,996 11,796 11,796 Total Revenues 1,207,200 1,207,200 1,298,316 91,116 91,116 EXPENDITURES Current: General Government - - - - - Judicial - - - - Public Safety - - - - Physical Environment - - - - - Transportation 1,227,985 1,297,985 1,512,044 (284,059) (214,059) Health and Human Services - - - - - Economic Environment - - - Culture and Recreation - - - - - Capital Outlay 181,000 181,000 - 181,000 181,000 Debt Service Principal - - - - - Interest - - - - - Total Expenditures 1,408,985 1,478,985 1,512,044 (103,059) (33,059) Excess of Revenues Over(Under)Expenditures (201,785) (271,785) (213,728) (11,943) 58,057 OTHER FINANCING SOURCES(USES) Insurance Recoveries 100 100 1,409 1,309 1,309 Transfers-In 145,000 215,000 215,000 70,000 - Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 145,100 215,100 216,409 71,309 1,309 Net Change in Fund Balances (56,685) (56,685) 2,681 59,366 59,366 Prior Period Adjustments - - - - - Fund Balance Beginning 60,000 60,000 276,343 216,343 216,343 Fund Balance,Ending $ 3,315 $ 3,315 $ 279,024 $ 275,709 $ 275,709 See accompanying notes to the basic financial statements. 96 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual ARTERIAL STREET FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue 2,745,000 2,745,000 427,048 (2,317,952) (2,317,952) Charges for Services - - - Fines&Forfeitures - - Investment Income 1,000 1,000 (9,767) (10,767) (10,767) Miscellaneous Revenue - - 62,870 62,870 62,870 Total Revenues 2,746,000 2,746,000 480,151 (2,265,849) (2,265,849) EXPENDITURES Current: General Government - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - Culture and Recreation - - - - - Capital Outlay 3,875,000 3,875,000 2,136,932 1,738,068 1,738,068 Debt Service Principal - - - - - Interest - - - - - Total Expenditures 3,875,000 3,875,000 2,136,932 1,738,068 1,738,068 Excess of Revenues Over(Under)Expenditures (1,129,000) (1,129,000) (1,656,781) (527,781) (527,781) OTHER FINANCING SOURCES(USES) Insurance Recoveries - - 37,771 37,771 37,771 Transfers-In 1,130,000 1,271,100 141,100 (988,900) (1,130,000) Transfers-(Out) - 63,300 - (63,300) Total Other Financing Sources(Uses) 1,130,000 1,334,400 178,871 (951,129) (1,155,529) Net Change in Fund Balances 1,000 205,400 (1,477,910) (1,478,910) (1,683,310) Prior Period Adjustments - - - - - Fund Balance Beginning - - 298,226 298,226 298,226 Fund Balance,Ending $ 1,000 $ 205,400 $ (1,179,684) $ (1,180,684) $ (1,385,084) See accompanying notes to the basic financial statements. 97 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual ARTERIAL STREET FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue 2,745,000 2,745,000 427,048 (2,317,952) (2,317,952) Charges for Services - - - Fines&Forfeitures - - Investment Income 1,000 1,000 (9,767) (10,767) (10,767) Miscellaneous Revenue - - 62,870 62,870 62,870 Total Revenues 2,746,000 2,746,000 480,151 (2,265,849) (2,265,849) EXPENDITURES Current: General Government - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - Culture and Recreation - - - - - Capital Outlay 3,875,000 3,875,000 2,136,932 1,738,068 1,738,068 Debt Service Principal - - - - - Interest - - - - - Total Expenditures 3,875,000 3,875,000 2,136,932 1,738,068 1,738,068 Excess of Revenues Over(Under)Expenditures (1,129,000) (1,129,000) (1,656,781) (527,781) (527,781) OTHER FINANCING SOURCES(USES) Insurance Recoveries - - 37,771 37,771 37,771 Transfers-In 1,130,000 1,271,100 141,100 (988,900) (1,130,000) Transfers-(Out) - 63,300 - (63,300) Total Other Financing Sources(Uses) 1,130,000 1,334,400 178,871 (951,129) (1,155,529) Net Change in Fund Balances 1,000 205,400 (1,477,910) (1,478,910) (1,683,310) Prior Period Adjustments - - - - - Fund Balance Beginning - - 298,226 298,226 298,226 Fund Balance,Ending $ 1,000 $ 205,400 $ (1,179,684) $ (1,180,684) $ (1,385,084) See accompanying notes to the basic financial statements. 98 City o f Pasco. Washington 20 oA Comprehensive .annual Financial eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual STREET OVERLAY FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 772,000 $ 772,000 $ 830,103 $ 58,103 $ 58,103 Licenses&Permits - - - - - Intergovernmental Revenue - Charges for Services - Fines&Forfeitures - - - - - Investment Income 40,000 40,000 42,702 2,702 2,702 Miscellaneous Revenue - - - - - Total Revenues 812,000 812,000 872,805 60,805 60,805 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - - Physical Environment - Transportation - Health and Human Services - Economic Environment - Culture and Recreation - - - - - Capital Outlay 1,620,000 1,620,000 1,433,823 186,177 186,177 Debt Service Principal - - - - - Interest - - - - - Total Expenditures 1,620,000 1,620,000 1,433,823 186,177 186,177 Excess of Revenues Over(Under)Expenditures (808,000) (808,000) (561,018) 246,982 246,982 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - Transfers-In - - Transfers-(Out) (400,000) (400,000) 400,000 400,000 Total Other Financing Sources(Uses) (400,000) (400,000) 400,000 400,000 Net Change in Fund Balances (1,208,000) (1,208,000) (561,018) 646,982 646,982 Prior Period Adjustments - - - - - Fund Balance Beginning 1,800,000 1,800,000 2,135,464 335,464 335,464 Fund Balance,Ending $ 592,000 $ 592,000 $ 1,574,446 $ 982,446 $ 982,446 See accompanying notes to the basic financial statements. 99 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual COMMUNITY DEVELOPMENT BLOCK GRANT FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue 866,175 866,175 606,758 (259,417) (259,417) Charges for Services - - - Fines&Forfeitures - - - - Investment Income - - 374 374 374 Miscellaneous Revenue 17,000 17,000 10,425 (6,575) (6,575) Total Revenues 883,175 883,175 617,557 (265,618) (265,618) EXPENDITURES Current: General Government - - - Judicial - - - - - Public Safety 60,500 60,500 48,000 12,500 12,500 Physical Environment - - - - - Transportation Health and Human Services - - - Economic Environment 118,100 118,100 150,629 (32,529) (32,529) Culture and Recreation - - - - - Capital Outlay 638,175 638,175 411,436 226,739 226,739 Debt Service Principal - - - - - Interest - - - - - Total Expenditures 816,775 816,775 610,065 206,710 206,710 Excess of Revenues Over(Under)Expenditures 66,400 66,400 7,492 (58,908) (58,908) OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - Transfers-In - - Transfers-(Out) (128,000) (128,000) (80,000) 48,000 48,000 Total Other Financing Sources(Uses) (128,000) (128,000) (80,000) 48,000 48,000 Net Change in Fund Balances (61,600) (61,600) (72,508) (10,908) (10,908) Prior Period Adjustments - - - Fund Balance Beginning 90,000 90,000 77,536 (12,464) (12,464) Fund Balance,Ending $ 28,400 $ 28,400 $ 5,028 $ (23,372) $ (23,372) See accompanying notes to the basic financial statements. 100 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual ML KING COMMUNITY CENTER FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - - Charges for Services 2,000 2,000 3,890 1,890 1,890 Fines&Forfeitures - - - - - Investment Income 200 200 125 (75) (75) Miscellaneous Revenue 28,000 28,000 28,634 634 634 Total Revenues 30,200 30,200 32,649 2,449 2,449 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - - - - Culture and Recreation 137,850 158,750 146,426 (8,576) 12,324 Capital Outlay - - - - Debt Service Principal - Interest - - - - Total Expenditures 137,850 158,750 146,426 (8,576) 12,324 Excess of Revenues Over(Under)Expenditures (107,650) (128,550) (113,777) (6,127) 14,773 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In 95,000 115,900 105,900 10,900 (10,000) Transfers-(Out) - - - - Total Other Financing Sources(Uses) 95,000 115,900 105,900 10,900 (10,000) Net Change in Fund Balances (12,650) (12,650) (7,877) 4,773 4,773 Prior Period Adjustments - - - - - Fund Balance Beginning 15,000 15,000 15,605 605 605 Fund Balance,Ending $ 2,350 $ 2,350 $ 7,728 $ 5,378 $ 5,378 See accompanying notes to the basic financial statements. 101 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual AMBULANCE SERVICES FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - - Intergovernmental Revenue 1,200 1,200 1,726 526 526 Charges for Services 1,480,000 1,680,000 1,811,945 331,945 131,945 Fines&Forfeitures - - - - - Investment Income - - (1,504) (1,504) (1,504) Miscellaneous Revenue 16,200 16,200 9,250 (6,950) (6,950) Total Revenues 1,497,400 1,697,400 1,821,417 324,017 124,017 EXPENDITURES Current: General Government - - - - - Judicial - - - - Public Safety 1,968,850 2,173,350 2,042,974 (74,124) 130,376 Physical Environment - - - - Transportation - Health and Human Services - Economic Environment - Culture and Recreation - - - - Capital Outlay 12,500 12,500 12,500 12,500 Debt Service Principal - - - - Interest - - - - Total Expenditures 1,981,350 2,185,850 2,042,974 (61,624) 142,876 Excess of Revenues Over(Under)Expenditures (483,950) (488,450) (221,557) 262,393 266,893 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In 420,000 424,500 420,000 (4,500) Transfers-(Out) - - - Total Other Financing Sources(Uses) 420,000 424,500 420,000 - (4,500) Net Change in Fund Balances (63,950) (63,950) 198,443 262,393 262,393 Prior Period Adjustments - - - - - Fund Balance Beginning 80,000 80,000 44,358 (35,642) (35,642) Fund Balance,Ending $ 16,050 $ 16,050 $ 242,801 $ 226,751 $ 226,751 See accompanying notes to the basic financial statements. 102 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual CONTINGENCYFUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - Charges for Services - Fines&Forfeitures - - Investment Income 5,000 5,000 4,624 (376) (376) Miscellaneous Revenue - - - - - Total Revenues 5,000 5,000 4,624 (376) (376) EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - - Economic Environment - - Culture and Recreation - Capital Outlay - Debt Service Principal - Interest - Total Expenditures - - - - - Excess of Revenues Over(Under)Expenditures 5,000 5,000 4,624 (376) (376) OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In Transfers-(Out) - Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 5,000 5,000 4,624 (376) (376) Prior Period Adjustments - - - - - Fund Balance Beginning 160,000 160,000 164,611 4,611 4,611 Fund Balance,Ending $ 165,000 $ 165,000 $ 169,235 $ 4,235 $ 4,235 See accompanying notes to the basic financial statements. 103 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual CITY VIEW CENTERY FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - ChargesforServices 215,000 245,000 213,890 (1,110) (31,110) Fines&Forfeitures - - - - - Investment Income 2,200 2,200 2,620 420 420 Miscellaneous Revenue 1,500 1,500 557 (943) (943) Total Revenues 218,700 248,700 217,067 (1,633) (31,633) EXPENDITURES Current: General Government - - - Judicial - Public Safety - - - Physical Environment 223,305 238,305 248,041 (24,736) (9,736) Transportation - - - Health and Human Services - - Economic Environment - - Culture and Recreation - Capital Outlay - - - - Debt Service Principal 20,000 50,000 20,000 50,000 Interest 2,000 2,000 - 2,000 2,000 Total Expenditures 245,305 290,305 248,041 (2,736) 42,264 Excess of Revenues Over(Under)Expenditures (26,605) (41,605) (30,974) (4,369) 10,631 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In 21,200 21,200 21,741 541 541 Transfers-(Out) - - - - - Total Other Financing Sources(Uses) 21,200 21,200 21,741 541 541 Net Change in Fund Balances (5,405) (20,405) (9,233) (3,828) 11,172 Prior Period Adjustments - - - Fund Balance Beginning 10,000 25,000 (23,345) (33,345) (48,345) Fund Balance,Ending $ 4,595 $ 4,595 $ (32,578) $ (37,173) $ (37,173) See accompanying notes to the basic financial statements. 104 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual ATHLETIC PROGRAM FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - - Charges for Services 81,000 81,000 91,348 10,348 10,348 Fines&Forfeitures - - - - - Investment Income 1,500 1,500 1,654 154 154 Miscellaneous Revenue 500 500 - (500) (500) Total Revenues 83,000 83,000 93,002 10,002 10,002 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - - - - - Culture and Recreation 102,875 102,875 91,486 11,389 11,389 Capital Outlay - - - - - Debt Service Principal - Interest - - - - - Total Expenditures 102,875 102,875 91,486 11,389 11,389 Excess of Revenues Over(Under)Expenditures (19,875) (19,875) 1,516 21,391 21,391 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - Transfers-In Transfers-(Out) - Total Other Financing Sources(Uses) - - - - Net Change in Fund Balances (19,875) (19,875) 1,516 21,391 21,391 Prior Period Adjustments - - (47) (47) (47) Fund Balance Beginning 40,000 40,000 67,799 27,799 27,799 Fund Balance,Ending $ 20,125 $ 20,125 $ 69,268 $ 49,143 $ 49,143 See accompanying notes to the basic financial statements. 105 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual SENIOR CENTER OPERATING FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - - Intergovernmental Revenue 18,000 18,000 29,119 11,119 11,119 Charges for Services - - - - - Fines&Forfeitures - - - - Investment Income - - 571 571 571 Miscellaneous Revenue 47,600 47,600 42,680 (4,920) (4,920) Total Revenues 65,600 65,600 72,370 6,770 6,770 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - - Physical Environment - Transportation - - - - Health and Human Services 44,425 56,425 46,117 (1,692) 10,308 Economic Environment - - - - Culture and Recreation 217,142 231,242 233,450 (16,308) (2,208) Capital Outlay - - - Debt Service Principal - Interest - - - - Total Expenditures 261,567 287,667 279,567 (18,000) 8,100 Excess of Revenues Over(Under)Expenditures (195,967) (222,067) (207,197) (11,230) 14,870 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In 195,000 221,100 219,500 24,500 (1,600) Transfers-(Out) - - - - Total Other Financing Sources(Uses) 195,000 221,100 219,500 24,500 (1,600) Net Change in Fund Balances (967) (967) 12,303 13,270 13,270 Prior Period Adjustments - - (100) (100) (100) Fund Balance Beginning 5,000 5,000 14,842 9,842 9,842 Fund Balance,Ending $ 4,033 $ 4,033 $ 27,045 $ 23,012 $ 23,012 See accompanying notes to the basic financial statements. 106 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual MULTI-MODAL FACILITY FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - Charges for Services - Fines&Forfeitures - - Investment Income 500 500 568 68 68 Miscellaneous Revenue 55,000 55,000 62,239 7,239 7,239 Total Revenues 55,500 55,500 62,807 7,307 7,307 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - Physical Environment - - - - - Transportation 54,290 54,290 54,364 (74) (74) Health and Human Services - - - - - Economic Environment Culture and Recreation Capital Outlay Debt Service Principal - Interest - - - - - Total Expenditures 54,290 54,290 54,364 (74) (74) Excess of Revenues Over(Under)Expenditures 1,210 1,210 8,443 7,233 7,233 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 1,210 1,210 8,443 7,233 7,233 Prior Period Adjustments - - - - - Fund Balance Beginning 10,000 10,000 6,696 (3,304) (3,304) Fund Balance,Ending $ 11,210 $ 11,210 $ 15,139 $ 3,929 $ 3,929 See accompanying notes to the basic financial statements. 107 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual BI-CENTENIAL FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - Charges for Services - Fines&Forfeitures - - Investment Income 200 200 167 (33) (33) Miscellaneous Revenue - - - - - Total Revenues 200 200 167 (33) (33) EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - Culture and Recreation - Capital Outlay - Debt Service Principal - Interest - - Total Expenditures - - - - - Excess of Revenues Over(Under)Expenditures 200 200 167 (33) (33) OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In Transfers-(Out) - Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 200 200 167 (33) (33) Prior Period Adjustments - - - - - Fund Balance Beginning 5,900 5,900 5,967 67 67 Fund Balance,Ending $ 6,100 $ 6,100 $ 6,134 $ 34 $ 34 See accompanying notes to the basic financial statements. 108 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual RIVERSHORE TRAIL&MARINA MAINTENANCE FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - Charges for Services - Fines&Forfeitures - - Investment Income 400 400 237 (163) (163) Miscellaneous Revenue 11,800 11,800 11,850 50 50 Total Revenues 12,200 12,200 12,087 (113) (113) EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - - Physical Environment - Transportation - Health and Human Services - Economic Environment - - - - - Culture and Recreation 19,925 19,925 12,619 7,306 7,306 Capital Outlay - - - - - Debt Service Principal - Interest - - - - - Total Expenditures 19,925 19,925 12,619 7,306 7,306 Excess of Revenues Over(Under)Expenditures (7,725) (7,725) (532) 7,193 7,193 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - - - Net Change in Fund Balances (7,725) (7,725) (532) 7,193 7,193 Prior Period Adjustments - - - - - Fund Balance Beginning 15,000 15,000 10,494 (4,506) (4,506) Fund Balance,Ending $ 7,275 $ 7,275 $ 9,962 $ 2,687 $ 2,687 See accompanying notes to the basic financial statements. 109 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual SPECIAL ASSESSMENT LODGING FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 190,000 $ 190,000 $ 193,950 $ 3,950 $ 3,950 Licenses&Permits - - - - - Intergovernmental Revenue - Charges for Services - Fines&Forfeitures - - - - - Investment Income 300 300 469 169 169 Miscellaneous Revenue - - - - - Total Revenues 190,300 190,300 194,419 4,119 4,119 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - - Physical Environment - - Transportation - Health and Human Services - - - Economic Environment 190,000 190,000 191,118 (1,118) (1,118) Culture and Recreation - - - Capital Outlay - Debt Service Principal - Interest - - - Total Expenditures 190,000 190,000 191,118 (1,118) (1,118) Excess of Revenues Over(Under)Expenditures 300 300 3,301 3,001 3,001 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 300 300 3,301 3,001 3,001 Prior Period Adjustments - - - - - Fund Balance Beginning 100 100 24,208 24,108 24,108 Fund Balance,Ending $ 400 $ 400 $ 27,509 $ 27,109 $ 27,109 See accompanying notes to the basic financial statements. 110 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual LITTER ABATEMENT FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - Charges for Services 5,000 5,000 5,000 Fines&Forfeitures - - - - Investment Income 100 100 329 229 229 Miscellaneous Revenue 7,500 7,500 7,500 0 0 Total Revenues 12,600 12,600 12,829 229 229 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - Physical Environment - - 13,265 (13,265) (13,265) Transportation 13,200 13,200 - 13,200 13,200 Health and Human Services - - - - - Economic Environment - Culture and Recreation Capital Outlay Debt Service Principal - Interest - - - - - Total Expenditures 13,200 13,200 13,265 (65) (65) Excess of Revenues Over(Under)Expenditures (600) (600) (436) 164 164 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances (600) (600) (436) 164 164 Prior Period Adjustments - - - - - Fund Balance Beginning 4,000 4,000 9,943 5,943 5,943 Fund Balance,Ending $ 3,400 $ 3,400 $ 9,507 $ 6,107 $ 6,107 See accompanying notes to the basic financial statements. 111 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual REVOLVING ABATEMENT FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - - Charges for Services 4,600 4,600 109,974 105,374 105,374 Fines&Forfeitures 45,000 45,000 50,753 5,753 5,753 Investment Income 10,000 10,000 5,882 (4,118) (4,118) Miscellaneous Revenue 20,000 20,000 20,021 21 21 Total Revenues 79,600 79,600 186,630 107,030 107,030 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - - - Economic Environment 31,225 31,225 123,330 (92,105) (92,105) Culture and Recreation - - - Capital Outlay - Debt Service Principal - Interest - - - Total Expenditures 31,225 31,225 123,330 (92,105) (92,105) Excess of Revenues Over(Under)Expenditures 48,375 48,375 63,300 14,925 14,925 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - - - - Net Change in Fund Balances 48,375 48,375 63,300 14,925 14,925 Prior Period Adjustments - - - - - Fund Balance Beginning 250,000 250,000 272,502 22,502 22,502 Fund Balance,Ending $ 298,375 $ 298,375 $ 335,802 $ 37,427 $ 37,427 See accompanying notes to the basic financial statements. 112 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual T.R.A.C.DEVELOPMENT&OPERATING FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 210,000 $ 210,000 $ 219,769 $ 9,769 $ 9,769 Licenses&Permits - - - - - Intergovernmental Revenue - Charges for Services - Fines&Forfeitures - - - - - Investment Income 300 300 1,059 759 759 Miscellaneous Revenue - - - - - Total Revenues 210,300 210,300 220,828 10,528 10,528 EXPENDITURES Current: General Government - - - - - Judicial - Public Safety - - Physical Environment - Transportation - Health and Human Services - Economic Environment - - - - Culture and Recreation 150,000 376,700 301,664 (151,664) 75,036 Capital Outlay - - - - Debt Service Principal 70,350 70,350 76,552 (6,202) (6,202) Interest 31,625 31,625 25,193 6,432 6,432 Total Expenditures 251,975 478,675 403,409 (151,434) 75,266 Excess of Revenues Over(Under)Expenditures (41,675) (268,375) (182,581) (140,906) 85,794 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In 45,000 271,700 196,700 151,700 (75,000) Transfers-(Out) - - - - Total Other Financing Sources(Uses) 45,000 271,700 196,700 151,700 (75,000) Net Change in Fund Balances 3,325 3,325 14,119 10,794 10,794 Prior Period Adjustments - - - - - Fund Balance Beginning 5,000 5,000 127,643 122,643 122,643 Fund Balance,Ending $ 8,325 $ 8,325 $ 141,762 $ 133,437 $ 133,437 See accompanying notes to the basic financial statements. 113 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual PARK DEVELOPMENT FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue - - Charges for Services 178,000 178,000 182,553 4,553 4,553 Fines&Forfeitures - - - - - Investment Income 50,000 50,000 52,748 2,748 2,748 Miscellaneous Revenue - - - - - Total Revenues 228,000 228,000 235,301 7,301 7,301 EXPENDITURES Current: General Government - - - - - Judicial Public Safety - Physical Environment - Transportation - Health and Human Services - - Economic Environment - Culture and Recreation - - - - - Capital Outlay 120,000 120,000 93,424 26,576 26,576 Debt Service Principal - - - - - Interest - - - - - Total Expenditures 120,000 120,000 93,424 26,576 26,576 Excess of Revenues Over(Under)Expenditures 108,000 108,000 141,877 33,877 33,877 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - - - Transfers-In - - - Transfers-(Out) (417) (417) (417) Total Other Financing Sources(Uses) - - (417) (417) (417) Net Change in Fund Balances 108,000 108,000 141,460 33,460 33,460 Prior Period Adjustments - - - - - Fund Balance Beginning 1,700,000 1,700,000 1,800,335 100,335 100,335 Fund Balance,Ending $ 1,808,000 $ 1,808,000 $ 1,941,795 $ 133,795 $ 133,795 See accompanying notes to the basic financial statements. 114 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual CAPITAL IMPROVEMENT FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 500,000 $ 500,000 $ 522,034 $ 22,034 $ 22,034 Licenses&Permits - - - - - Intergovernmental Revenue - Charges for Services - Fines&Forfeitures - - - - - Investment Income 100,000 100,000 107,716 7,716 7,716 Miscellaneous Revenue - - - - - Total Revenues 600,000 600,000 629,750 29,750 29,750 EXPENDITURES General Government - - - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - Culture and Recreation - - - - - Capital Outlay 2,700,000 2,700,000 2,926 2,697,074 2,697,074 Debt Service Principal - - - - - Interest - - - - - Total Expenditures 2,700,000 2,700,000 2,926 2,697,074 2,697,074 Excess of Revenues Over(Under)Expenditures (2,100,000) (2,100,000) 626,824 2,726,824 2,726,824 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - Transfers-In Transfers-(Out) (1,114) (1,114) (1,114) Total Other Financing Sources(Uses) (1,114) (1,114) (1,114) Net Change in Fund Balances (2,100,000) (2,100,000) 625,710 2,725,710 2,725,710 Prior Period Adjustments - - - - - Fund Balance Beginning 3,600,000 3,600,000 3,570,605 (29,395) (29,395) Fund Balance,Ending $ 1,500,000 $ 1,500,000 $ 4,196,315 $ 2,696,315 $ 2,696,315 See accompanying notes to the basic financial statements. 115 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual INDUSTRIAL DEVELOPMENT&INFRASTRUCTURE FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ $ $ $ $ Licenses&Permits - Intergovernmental Revenue 160,000 160,000 85,793 (74,207.00) (74,207.00) Charges for Services - - - Fines&Forfeitures - - - Investment Income 20,000 20,000 17,885 (2,115) (2,115) Miscellaneous Revenue - - - Total Revenues 180,000 180,000 103,678 (76,322) (76,322) EXPENDITURES Current: General Government - - - Judicial - Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - Culture and Recreation - - Capital Outlay - 29,461 (29,461) (29,461) Debt Service Principal - - Interest - - Total Expenditures - - 29,461 (29,461) (29,461) Excess of Revenues Over(Under)Expenditures 180,000 180,000 74,217 (105,783) (105,783) OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - Transfers-In Transfers-(Out) Total Other Financing Sources(Uses) - - Net Change in Fund Balances 180,000 180,000 74,217 (105,783) (105,783) Prior Period Adjustments - - - - - Fund Balance Beginning 575,000 575,000 635,378 60,378 60,378 Fund Balance,Ending $ 755,000 $ 755,000 $ 709,595 $ (45,405) $ (45,405) See accompanying notes to the basic financial statements. 116 City o f Pasco. Washington 20 oA Comprehensive .annual�-inanciaC eport Statement of Revenues,Expenditures and Changes in Fund Balances Budget to Actual STADIUM/CONVENTION CENTER FUND For the Year Ended December 31,2009 Original Final Variance to Variance to Budget Budget Actual Original Budget Final Budget REVENUES Taxes $ 210,000 $ 210,000 $ 219,770 $ 9,770 $ 9,770 Licenses&Permits - - - - - Intergovernmental Revenue 200,000 200,000 193,590 (6,410) (6,410) Charges for Services - - - Fines&Forfeitures - - - - - Investment Income 250 250 1,242 992 992 Miscellaneous Revenue 14,540 14,540 15,754 1,214 1,214 Total Revenues 424,790 424,790 430,356 5,566 5,566 EXPENDITURES Current: General Government - - - - - Judicial Public Safety - Physical Environment - Transportation - Health and Human Services - Economic Environment - - - - - Culture and Recreation 124,000 124,000 112,588 11,412 11,412 Capital Outlay 200,000 200,000 - 200,000 200,000 Debt Service Principal 100,000 100,000 100,000 - - Interest 27,250 27,250 26,950 300 300 Total Expenditures 451,250 451,250 239,538 211,712 211,712 Excess of Revenues Over(Under)Expenditures (26,460) (26,460) 190,818 217,278 217,278 OTHER FINANCING SOURCES(USES) Insurance Recoveries - - - Transfers-In Transfers-(Out) - (201,589) (201,589) (201,589) Total Other Financing Sources(Uses) - (201,589) (201,589) (201,589) Net Change in Fund Balances (26,460) (26,460) (10,771) 15,689 15,689 Prior Period Adjustments - - - - - Fund Balance Beginning 35,000 35,000 26,642 (8,358) (8,358) Fund Balance,Ending $ 8,540 $ 8,540 $ 15,871 $ 7,331 $ 7,331 See accompanying notes to the basic financial statements. 117 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport Combining Statement of Net Assets Internal Services Fund For the Year Ended December 31,2009 Governmental Activities Internal Service Funds Equipment Equipment Medical Rental Rental Animal Central Insurance 2009 2008 Operations Replacement Control Stores Fund Total Total ASSETS Current Assets: Current Cash&Cash Equivalents $ 284,209 $ 2,788,548 $ 2,106 $ 10,876 $ 1,597,974 $4,683,713 $ 4,067,115 Receivables(net of allowances) Interfund Loans Receivable - 538,905 - - - 538,905 100,000 Merchandise Inventory - - - 8,179 - 8,179 8,357 Interest Receivable 935 13,923 167 52 8,140 23,217 25,132 Due from Governmental Units - - 17,226 17,226 25,708 Total Current Assets 285,144 3,341,376 19,499 19,107 1,606,114 5,271,240 4,226,312 Non-Current Assets: Restricted Assets - - - - - - - Fixed Assets 5,429,596 92,050 5,521,646 5,357,490 Less:Accumulated Depreciation - (3,325,908) (53,745) - - (3,379,653) (3,051,293) TOTAL ASSETS 285,144 5,445,064 57,804 19,107 1,606,114 7,413,233 6,532,509 LIABILITIES Current Liabilities: Accounts Payable 14,928 1,731 13,583 526 - 30,768 34,068 Current Portion Loan Payable - - - - - 160,000 Total Current Liabilities 14,928 1,731 13,583 526 30,768 194,068 Non-Current Liabilities Compensated Absences 24,885 - - - 24,885 20,934 Interfund Loans Payable - - 160,000 Current Portion Loan Payable - - (160,000) Claims Incurred Not Reported - - 550,000 550,000 550,000 Total Liabilities 39,813 1,731 13,583 526 550,000 605,653 765,002 NETASSETS Investment in Capital Assets,Net of Related Debt - 2,103,688 38,305 - - 2,141,993 2,306,197 Restricted for Debt Service - 538,905 - - - 538,905 100,000 Unrestricted 245,331 2,800,740 5,916 18,581 1,056,114 4,126,682 3,361,310 Total Net Assets $ 245,331 $ 5,443,333 $ 44,221 $ 18,581 $ 1,056,114 $6,807,580 $ 5,767,507 See accompanying notes to the basic financial statements. 118 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport Combining Statement of Net Assets Internal Services Fund For the Year Ended December 31,2009 Business Type Activities Internal Service Funds Equipment Equipment Rental Rental 2009 2008 Operations Replacement Total Total ASSETS Current Assets: Current Cash&Cash Equivalents $ 115,790 $ 1,451,330 $ 1,567,120 $ 1,388,164 Receivables(net of allowances) Interfund Loans Receivable - - - - Merchandise Inventory - - - - Interest Receivable 1,016 7,133 8,149 10,404 Due from Governmental Units - - - Total Current Assets 116,806 1,458,463 1,575,269 1,398,568 Non-Current Assets: Restricted Assets - - - - Fixed Assets 2,234,876 2,234,876 2,104,799 Less:Accumulated Depreciation - (1,181,178) (1,181,178) (1,103,516) TOTAL ASSETS 116,806 2,512,161 2,628,967 2,399,851 LIABILITIES Current Liabilities: Accounts Payable 678 - 678 5,819 Current Portion Loan Payable - - - Total Current Liabilities 678 678 5,819 Non-Current Liabilities Compensated Absences 7,883 7,883 7,883 Interfund Loans Payable - - - Current Portion Loan Payable Claims Incurred Not Reported - - - Total Liabilities 8,561 - 8,561 13,702 NET ASSETS Investment in Capital Assets,Net of Related Debt - 1,053,698 1,053,698 2,104,799 Restricted for Debt Service - - - - Unrestricted 108,245 1,458,463 1,566,708 281,350 Total Net Assets $ 108,245 $ 2,512,161 $ 2,620,406 $ 2,386,149 See accompanying notes to the basic financial statements. 119 City of Pasco, `Washington 2009 Comprehensive .annual Tinancial Report Combining Statement of Revenues,Expenditures,and Changes in Fund Net Assets Internal Services Fund For the Year Ended December 31,2009 Governmental Activities Internal Service Funds Equipment Equipment Medical Rental Rental Animal Central Insurance 2009 2008 Operations Replacement Control Stores Fund Total Total OPERATING REVENUES Charges for Services-Internal $ 931,740 $ 464,620 $ 182,417 $ 15,547 $ 3,495,008 $ 5,089,332 $ 4,499,715 Charges for Services-Other 11,953 41,900 433,619 487,472 725,659 Total Operating Revenues 943,693 506,520 616,036 15,547 3,495,008 5,576,804 5,225,374 OPERATING EXPENSES Operating Expenses 124,380 - 613,863 17,377 24,000 779,620 749,983 Maintenance Expenses 711,807 394 - - - 712,201 766,902 Insurance Claims and Expenses - - - 2,886,658 2,886,658 2,628,228 Depreciation - 407,625 14,019 - 421,644 438,819 Capital Outlays 3,943 - 3,943 5,167 Total Operating Expenses 840,130 408,019 627,882 17,377 2,910,658 4,804,066 4,589,099 OPERATING INCOME(LOSS) 103,563 98,501 (11,846) (1,830) 584,350 772,738 636,275 NON-OPERATING REVENUES(EXPENSES) Investment Income 4,215 74,943 627 285 37,708 117,778 128,396 Total Non-Operating Revenues(Expenses) 4,215 74,943 627 285 37,708 117,778 128,396 Income(Loss)before Contributions and Transfers 107,778 173,444 (11,219) (1,545) 622,058 890,516 764,671 Capital Contributions - 68,957 - 68,957 234,525 Transfers In 80,982 - 80,982 61,222 Transfers(Out) - - Changes in Net Assets 188,760 242,401 (11,219) (1,545) 622,058 1,040,455 1,060,418 Prior Year Adjustments - - - - (382) (382) (426,290) NET ASSETS-BEGINNING 56,571 5,200,932 55,440 20,126 434,438 5,767,507 5,133,379 NETASSETS-ENDING $ 245,331 $ 5,443,333 $ 44,221 $ 18,581 $ 1,056,114 $ 6,807,580 $ 5,767,507 See accompanying notes to the basic financial statements. 120 City of Pasco, `Washington 2009 Comprehensive .annual TinancialReport Combining Statement of Revenues,Expenditures,and Changes in Fund Net Assets Internal Services Fund For the Year Ended December 31,2009 Business-type Activities Internal Service Funds Equipment Equipment Rental Rental 2009 2008 Operations Replacement Total Total OPERATING REVENUES Charges for Services-Internal $ 385,020 $ 242,280 $ 627,300 $ 525,120 Charges for Services-Other 2,613 2,613 6,424 Total Operating Revenues 387,633 242,280 629,913 531,544 OPERATING EXPENSES Operating Expenses 16,800 - 16,800 18,000 Maintenance Expenses 185,356 185,356 225,973 Insurance Claims and Expenses - - - - Depreciation 222,734 222,734 223,970 Capital Outlays/sale of assets - (22,122) (22,122) 16,627 Total Operating Expenses 202,156 200,612 402,768 484,570 OPERATING INCOME(LOSS) 185,477 41,668 227,145 46,974 NON-OPERATING REVENUES(EXPENSES) Investment Income 3,967 35,530 39,497 51,925 Total Non-Operating Revenues(Expenses) 3,967 35,530 39,497 51,925 Income(Loss)before Contributions and Transfers 189,444 77,198 266,642 98,899 Capital Contributions - 48,597 48,597 238,162 Transfers In - - - Transfers(Out) (80,982) - (80,982) (51,700) Changes in Net Assets 108,462 125,795 234,257 285,361 Prior Year Adjustments - - - - NET ASSETS-BEGINNING (217) 2,386,366 2,386,149 2,100,788 NET ASSETS-ENDING $ 108,245 $ 2,512,161 $ 2,620,406 $ 2,386,149 See accompanying notes to the basic financial statements. 121 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport Combining Statement of Cash Flows Internal Services Fund For the Year Ended December 31,2009 Governmental Activities Internal Service Funds Equipment Equipment Medical Rental Rental Animal Central Insurance Operations Replacement Control Stores Fund Total CASH FLOW FROM OPERATING ACTIVITIES: Cash Received from Customers $ 943,693 $ 501,191 $ 584,505 $ 15,513 $ 3,493,822 $ 5,538,724 Payments for Maintenance&Ops. (838,056) - (569,160) (15,471) (24,000) (1,446,687) Payments to Employees - - - (2,886,806) (2,886,806) Net Cash provided by operating activities 105,637 501,191 15,345 42 583,016 1,205,231 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Prior Year Adjustments 65,747 - - (382) 65,365 Transfers In(Out) 80,982 80,982 146,729 - (382) 146,347 CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Capital Assets - 68,957 68,957 CASH FLOWS FROM INVESTING ACTIVITIES: Investment Activities Income 4,486 74,943 627 285 37,708 118,049 Interfund Loans 0 0 0 Net Cash Provided from Investing Activities 4,486 74,943 627 285 37,708 118,049 Net Increase(Decrease)in Cash and Cash Equivalents 256,852 645,091 15,972 327 620,342 1,538,584 Cash and Cash Equivalents January 1 27,357 3,247,427 41,073 14,648 556,813 3,887,318 Cash and Cash Equivalents December 31 $ 284,209 $ 3,892,518 $ 57,045 $ 14,975 $ 1,177,155 $ 5,425,902 CASH PROVIDED BYOPERATING ACTIVITIES: Net Operating Income $ 103,563 $ 98,501 $ (11,846) $ (1,830) $ 584,350 $ 772,738 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation 407,625 14,019 - 421,644 (Increase)/Decrease in Customer Receivables (5,329) (31,531) (34) (1,186) (38,080) Increase/(Decrease)in Accounts Payable (1,877) 44,703 1,906 (148) 44,584 Increase/(Decrease)in Compensated Absences 3,951 - - - - 3,951 Net Cash Provide by Operating Activities $ 105,637 $ 500,797 $ 15,345 $ 42 $ 583,016 $ 1,204,837 See accompanying notes to the basic financial statements. 122 City of Pasco, `Washington 2009 Comprehensive .annual TinancialPeport Combining Statement of Cash Flows Internal Services Fund For the Year Ended December 31,2009 Business-type Activities Internal Service Funds Equipment Equipment Rental Rental Operations Replacement Total CASH FLOW FROM OPERATING ACTIVrTIES: Cash Received from Customers $ 387,633 $ 242,280 $ 629,913 Payments for Maintenance&Ops. (198,742) 22,122 (176,620) Payments to Employees - - - Net Cash provided by operating activities 188,891 264,402 453,293 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Prior Year Adjustments - - - Transfers In(Out)' CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of Capital Assets - 48,597 48,597 CASH FLOWS FROM INVESTING ACTIVITIES: Investment Activities Income 3,967 35,530 39,497 Interfund Loans 0 0 0 Net Cash Provided from Investing Activities 3,967 35,530 39,497 Net Increase(Decrease)in Cash and Cash Equivalents 192,858 348,529 541,387 Cash and Cash Equivalents January 1 (6,470) 1,658,279 1,651,809 Cash and Cash Equivalents December 31 $ 186,388 $ 2,006,808 $ 2,193,196 `Reflects activities on interfund loans CASH PROVIDED BY OPERATING ACTIV rTIES: Net Operating Income $ 185,477 $ 41,668 $ 227,145 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation 222,734 222,734 (Increase)/Decrease in Customer Receivables - - - Increase/(Decrease)in Accounts Payable 3,414 3,414 Increase/(Decrease)in Compensated Absences - Net Cash Provide by Operating Activities $ 188,891 $ 264,402 $ 453,293 See accompanying notes to the basic financial statements. 123 City o f Pasco, Washington zooA Comprehensive .annual Financial eport This page is intentionally left blank 124 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport MCAG NO. 0292 CITY OF PASCO, WASHINGTON SCHEDULE 8-REAL AND PERSONAL PROPERTY TAXES (ALL TAX-SUPPORTED FUNDS) For the Year Ended December 31, 2009 TAXES FUND RECEIVABLE TAXRATE TAXES LEVIED TAXES NETTAX TAXES REC. NO. FUND NAME 1/1/2009 /$1,000 REPORTYEAR COLLECTED ADJUST. 12/31/2009 010 General Fund $282,971 2.0042 $5,725,000 $5,730,455 $5,086 $282,602 271 93 Civic Center Bonds 1,158 0.0000 0 420 (242) 496 272 Fire/Library Bond 7,695 0.0615 155,000 153,709 (728) 8,258 273 2002 UTGO Bonds 18,527 0.1690 381,000 378,875 (1,756) 18,896 TOTAL TAXES $310,351 2.2347 $6,261,000 $6,263,459 $2,360 $310,252 " Receivable amounts reflect balance after December 2009 tax payments. This amount agrees with the Tax Account Balance Report printed on 03/24/10 from Franklin County Treasurer's Office. 125 City o f Pasco, Washington zooA Comprehensive .annual Financial eport This page is intentionally left blank 126 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report MCAG NO. 0292 SCHEDULE 9- LONG-TERM DEBT- L.I.D. ASSESSMENTS Year Ended December 31, 2009 FINAL ORIGINAL ISSUE MATURITY INTEREST ISSUE ID. NO. AND DESCRIPTION PURPOSE DATE DATE RATE AMOUNT BONDS: 253.12 2001 U.L.I.D. 135 Bonds 582.41.73 11/02 11/12 5.75% $ 536,975 536,975 NOTES: 263.63 LID 125 Note 582.41.73 12/00 12/07 6.00% 80,960 263.63 LID 138 Note 581.20.77 12/05 12/05 5.00% 57,662 263.63 LID 139 Note 581.20.77 12/02 12/17 5.00% 405,375 263.63 LID 140 Note 581.20.77 12/03 12/18 4.50% 71,943 263.63 LID 901 Note 582.41.73 12/02 12/12 4.00% 45,700 661,640 TOTAL L. I. D. ASSESSMENT DEBT $ 1,198,615 BEGINNING AMOUNT ENDING UNMATURED AMOUNT DUE THIS UNMATURED DEBT ISSUED PERIOD DEBT LID 135 Bonds $ 120,000 $ 0 $ 105,000 $ 15,000 120,000 0 105,000 15,000 LID 125 Note 16,800 0 0 16,800 LID 138 Note 15,500 0 1,475 14,025 LID 140 Note 1,500 0 463 1,037 LID 901 Note 1,100 0 640 460 34,900 0 2,578 32,322 $ 154,900 $ 0 $ 107,578 $47,322 127 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report MCAG NO.0292 SCHEDULE 9-LONG-TERM DEBT-G.O.AND REVENUE Year Ended December 31,2009 FINAL ORIGINAL ISSUE MATURITY INTEREST ISSUE DESCRIPTION PURPOSE DATE DATE RATE AMOUNT G.O. DEBT Councilmanic G.O. Bonds 251.11 2001 L.T.G.O. Bond 594.74.63 3/1/2001 12/1/2020 4.25-5.05% $6,900,000 251.16 2002 LTGO&Refunding Bond 594.74.63 10/1/2002 4/1/2022 2-4.7% 3,635,000 Total Councilmanic G.O. Bonds $10,535,000 Voted G.O. Bonds 251.12 1999 G.O.B. Library 594.73.62 10/1/1999 12/1/2019 5.2-5.6% $1,700,000 251.12 2002 UTGO Refunding Bond 594.74.63 11/1/2002 12/1/2013 2.5-4.0% 3,155,000 Total Voted G. O. Bonds $4,855,000 TOTAL G.O. DEBT $15,390,000 Other Debt 263.81 TRAC Loan 12/1/1997 12/1/2014 4.5-5.5% $1,197,931 263.81 Port of Pasco Airport Fire Bldg 7/12/2006 7/12/2016 4.00% 120,000 263.81 State L.O.C.A.L. Bond-Computers 594.74.63 12/1/2009 6/1/2013 3.47% 200,000 263.81 State L.O.C.A.L. Bond-Animal Control 594.74.63 11/1/2001 12/1/2016 6.24% 275,500 263.81 State L.O.C.A.L. Bond-Patrol 594.74.63 12/1/2004 12/1/2008 3.19% 161,640 Total Other Debt $1,955,071 UTILITY DEBT 263.82 State Revolving Loan Fund 594.35.63 5/31/1994 10/31/2015 1.0% $24,664,959 263.82 P.W.T.F. Loan#95025-Sewer Plant 594.35.63 6/30/1995 6/30/2015 1.0% 812,700 263.82 P.W.T.F. Loan#95026-Road 100 Water Re: 594.34.63 6/30/1995 6/30/2015 1.0% 2,687,300 252.11 1998 W/S Revenue Bonds 594.35.63 9/15/1998 6/1/2018 5.5-6.45% 2,255,000 252.15 1998 W/S Refunding Bonds 594.34.63 9/15/1998 6/1/2014 3.8-4.6% 6,725,000 252.11 1998 W/S Revenue Bonds 594.35.63 9/15/1998 6/1/2014 3.7-4.8% 1,515,000 252.11 1999 W/S Revenue Bonds 594.35.63 10/7/1999 9/1/2016 4.10-5.8% 985,000 263.82 P.W.T.F. Loan#00691043 594.35.63 7/5/2000 6/30/2020 1.0% 1,890,000 252.11 2001 W/S Revenue Bonds 594.35.63 9/1/2001 9/1/2016 3.5-4.85% 995,000 252.11 2002 W/S Revenue Bonds 594.35.63 10/1/2002 12/1/2022 2.0-4.7% 5,945,000 252.11 2005 W/S Revenue Bonds 594.35.63 12/5/2005 12/5/2025 3.5-4.25% 4,400,000 252.11 2007 W/S Revenue Bonds 594.35.63 7/2/2007 9/1/2022 4.25-4.75% 845,000 252.11 2009 W/S Revenue Bonds 594.35.63 4/17/2009 5/1/2029 3-4.625% 10,045,000 TOTAL UTILITY DEBT $63,764,959 TOTAL LONG-TERM DEBT $81,110,030 128 City o f Pasco. Washington 20oA Comprehensive .annual rinanciaCleport SCHEDULE 9-LONG-TERM DEBT-G.O.AND REVENUE (continued) BEGINNING AMOUNT ENDING UNMATURED AMOUNT DUE THIS UNMATURED DESCRIPTION DEBT ISSUED PERIOD DEBT G.O. DEBT Councilmanic G.O. Bonds 2001 L.T.G.O. Bond $5,360,000 $0 $345,000 $5,015,000 2002 LTGO&Refunding Bond 2,765,000 0 210,000 2,555,000 Total Councilmanic G.O. Bonds $8,125,000 $0 $555,000 $7,570,000 Voted G.O. Bonds 1999 G.O.B Library $1,100,000 0 $100,000 $1,000,000 2002 UTGO Refunding Bond 1,690,000 0 315,000 1,375,000 Total Voted G. O. Bonds $2,790,000 0 $415,000 $2,375,000 TOTAL G.O. DEBT $10,915,000 0 $970,000 $9,945,000 Other Debt TRAC $527,587 0 $76,552 $451,035 Port of Pasco Airport Fire Bldg 95,230 0 10,970 84,260 State L.O.C.A.L. Loan 28,477 0 28,477 0 State L.O.C.A.L. Loan 176,921 0 17,510 159,411 State L.O.C.A.L. Loan 200,000 0 23,889 176,111 Total Other Debt $1,028,215 0 $157,398 $870,817 UTILITY DEBT $15,607,905 PWTF Loan#89036 $61,563 0 $61,563 $0 State Revolving Loan Fund 15,607,905 0 1,183,959 14,423,946 PWTF Loan#95025 301,080 0 43,011 258,069 PWTF Loan#95026 751,628 0 107,375 644,253 1998 W/S Revenue Bonds 1,420,000 0 105,000 1,315,000 1998 W/S Refunding Bonds 4,120,000 0 615,000 3,505,000 1998 W/S Revenue Bonds 315,000 0 100,000 215,000 1999 W/S Revenue Bonds 535,000 0 50,000 485,000 P.W.T.F. Loan#00691043 1,333,686 0 111,140 1,222,546 2001 W/S Revenue Bonds 610,000 0 65,000 545,000 2002 W/S Revenue Bonds 4,550,000 0 255,000 4,295,000 2005 W/S Revenue Bonds 3,900,000 0 165,000 3,735,000 2007 W/S Revenue Bonds 745,000 0 50,000 695,000 2009 W/S Revenue Bonds 10,045,000 0 0 10,045,000 TOTAL UTILITY DEBT 44,295,862 0 $2,912,048 $41,383,814 TOTAL LONG-TERM DEBT $56,239,077 $0 $4,039,446 $52,199,631 129 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport MCAG NO. 0292 SCHEDULE 10- LIMITATION OF INDEBTEDNESS For the Year Ended December 31, 2009 Property Valuation for 2009 Taxes* $2,934,792,310 GENERALPURPOSES Limit of 2.5% of Assessed Value Councilmanic: Capacity (1.5% of Assessed value) $44,021,885 Less: G.O. Bonds Outstanding $7,570,000 State LOCAL Loans 335,522 T.R.A.C. Obligation 451,035 Airport Fire Station 84,260 Compensated Absences 1,685,672 Outstanding Debt $10,126,489 Remaining debt capacity without a vote $33,895,396 Voter-Approved: Capacity (1.0% of Assessed Value) $29,347,923 Less: G.O. Bonds Outstanding $2,375,000 Outstanding Debt 2,375,000 Remaining debt capacity with a vote $26,972,923 Remaining Capacity for General Purposes $60,868,319 UTILITY PURPOSES Voter-Approved: Capacity (2.5% of Assessed Value) $73,369,808 Remaining debt capacity-Utility Purpose, voted $73,369,808 OPEN SPACE AND PARK FACILITIES Voter-Approved: Capacity (2.5% of Assessed Value) $73,369,808 Remaining debt capacity -Open Space Park & Capital Facilites, voted $73,369,808 TOTAL AVAILABLE DEBT CAPACITY $207,607,935 *From Franklin County Tax Collection Book 130 City o f Pasco. Washington 20oA Comprehensive .annual rtnanciaC eport MCAG NO. 0292 SCHEDULE 12 -OPERATION OF INVESTMENTS -ALL FUNDS For The Year Ended December 31, 2009 INVESTMENT INVESTMENTS INVESTMENT FUND FUND BALANCE (AT COSTS) BALANCE NO. DESCRIPTION 1/1/2013 ACQUIRED LIQUIDATED 12/31/2013 620 Fire Pension $ 3,113,362 $ 447,740 $ 40,323 $ 3,520,779 650 Surplus Cash 32,738,059 20,597,991 15,065,674 38,270,376 TOTAL $ 35,851,421 $ 21,045,731 $ 15,105,997 $ 41,791,155 131 City of Pasco, Washington 2009 Comprehensive .annual TinanciaCPeport MCAG NO 0292 SCHEDULE 13 - CASH AND INVESTMENTS - SCHEDULE 14 - SHORT-TERM INTEREST-BEARING DEBT- SCHEDULE 15 - CONTRIBUTIONS FOR EMPLOYEE BENEFITS - For The Year Ended December 31, 2009 ALL MONEY HELD FOR REDEMPTION UNEXPENDED OF LONG-TERM PROCEEDS OF ALL OTHER DEBT BOND ISSUES MONIES CASH AND INVESTMENTS Cash and Deposits $ 1,059,761 $ 0 $ 9,322,764 Federal Securities 0 0 0 Federal Agency Securities 0 0 30,498,791 Other Securities 0 0 2,365,743 $ 1,059,761 $ 0 $ 42,187,298 SHORT-TERM INTEREST-BEARING DEBT Balance as of Beginning of Year $ 0 Balance as of End of Year 0 CONTRIBUTIONS FOR EMPLOYEE BENEFITS Retirement Programs To Federal Social Security System $ 905,245 To State Administered Employee Retirement System 1,117,679 To Locally Administered Employee Retirement System 0 For Commerical Annuity Plans 0 Direct Pension Payments 92,145 TOTAL ALL RETIREMENT PROGRAMS $ 2,115,069 Insurance Programs For Health, Hospital, Dental and Disability Insurance - Self-Insured $ 2,812,481 For Other Vision Insurance 11,963 For Life Insurance 14,937 For Workmen's Compensation Insurance 367,308 For Unemployment Compensation - Self-Insured 69,573 TOTAL ALL INSURANCE PROGRAMS $ 3,276,262 132 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport MCAG NO.0292 SCHEDULE 16-SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2009 Grantor/ Federal Other Pass- Pass-Through Grantor CFDA Identification Through Direct Program Title Number Number Awards Awards Total US Department of Health&Human Services Pass through Yakima County,Office of Aging&Long Term Care Supportive Services&Senior Centers-Foot Care 93.044 96-009-391 (PA) $ 18,000 $ 18,000 Supportive Services&Senior Centers-Health Screening 93.044 11,000 11,000 Total US Dept of Health&Human Services 29,000 - 29,000 US Department of Federal Emergency Management Agency Assistance to Firefighters-generator, helmets,boots&struch 97.044 EMW-2008-FO-03704 59,688 59,688 Total US Department of FEMA 59,688 59,688 US Department of Defense Economic Adjustment Assistance - Wagenaar ARC Base Closure Plan 12.607 CL0684-08-02 19,045 19,045 Total US Department of Defense 19,045 19,045 US Department of Housing&Urban Development Community Development Block Grant/Entitlement Grant 14.218 B-09-MC-53-009 612,604 612,604 Community Development Block Grant/Recovery Act Entitleme 14.253 B-09-MC-53-009 10,000 10,000 Community Development Block Grant Program Income 14.218 10,667 10,667 Pass Through Washington Department of Commerce Neighborhood Stabilization Plan 14.239 08-176401-014 1,693 1,693 Total US Department of Housing&Urban Development 1,693 633,271 634,964 US Department of Justice Edward Byrne Memorial Justice Assistance Grant Program 16.804 2009-DJ-BX 1308 9,424 9,424 Edward Byrne Domestic Violence Services Unit Project 16.804 2007-DJ-BX 0012 - - Edward Byrne Memorial Formula Grant Program 16.804 2009-SB-B9-2881 89,916 89,916 Pass Through from METRO Drug Task Force Edward Byrne Memorial Formula Grant Program(Narcotics Ts 16.803&16.738 M09-34721-012 62,706 - 62,706 Total US Dept of Justice 62,706 99,340 162,046 US Department of Transportation Pass through Washington Traffic Safety Commission -Alcohol Traffic Safety&Drunk Driving Prevention 20.601 35,409 35,409 Benton Franklin County Traffic Safety Task Force 20.601 6,232 6,232 Purchase Computer Equipment 20.601 2,006 2,006 Highway Planning&Construction 182/Broadmoor Improvement(2-08-3-03) 20.205 STPUS-3513-(002) 259,017 259,017 2008 Street Overlays(3-08-3-01) 20.205 STPUS-0960-(004) 563,763 563,763 Total US Dept.of Transportation 866,427 - 866,427 TOTAL FEDERAL AWARDS EXPENDED: $ 959,826 $ 811,344 $ 1,771,170 133 City o f Pasco. Washington 2000 Comprehensive .annual Financial Report MCAG NO.0292 CITY OF PASCO SCHEDULE 16-SCHEDULE OF STATE AND LOCAL FINANCIAL ASSISTANCE For the Year Ended December 31,2009 Grantor/ Federal Other Pass- Pass-Through Grantor CFDA Identification Through Direct Program Title Number Number Awards Awards Total Interlocal Grants Sex Offender- (Franklin County) Interlocal Agency AgreemE 2,421 2,421 GREAT-Gang Related Education and Training(City of Kennewick) Interlocal Agency AgreemE 21,116 21,116 Total Interlocal 23,537 - 23,537 Washington State Transportation Improvement Board Argent Rd&Road 84 (2-09-3-02) 20.205 P-E-17-174(P03)-1 200,000 200,000 Total TIB - 200,000 200,000 Washington State Dept of Community Trade and Economic Development Baseball Stadium-Patio Improvements project#609602 52,550 52,550 Baseball Stadium-Scoreboard Improvements project#609603 139,820 139,820 Stop Grant-Violence Against Women 16.588 2008-WF-AX0008 31,786 31,786 Total CTED 224,156 - 224,156 Washington State Administration of Courts Interpreter Grant(Municipal Court) IAA10224 11,354 11,354 Total Administration of Courts - 11,354 11,354 Washington State Department of Ecology Storm water Grant-Phase 2 G0700044 16,461 16,461 0 16,461 16,461 Pasco School District Anti Harassment Bullying Program Reimbursement Interlocal Agency Agreement 21,408 21,408 Pasco School District 21,408 0 21,408 Department of Health&Human Services EMS Prehospital Participation Grant FY09-11M02 1,726 1,726 1,726 0 1,726 TOTAL STATE AND LOCAL ASSISTANCE: $ 270,827 $ 27,815 $ 298,642 134 City of Pasco, `Washington 200.9 Comprehensive AnnuafTinanciafReport 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—PROGRAM INCOME The City has a revolving loan program for low-income housing. Under this federal pass-through grant, repayments to the City are considered program revenues (income) and loans of such funds to eligible recipients are considered expenditures. No loan funds were disbursed in 2009 for the rehab loan program. The amount of principal and interest received in loan repayments for the year was $10,667. 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. 135 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report MCAG NO. 0292 SCHEDULE 19- LABOR RELATIONS CONSULTANTS For the Year Ended December 31, 2009 Has your government engaged labor relations consultants? X Yes No If yes, please provide the following information for each consultant(s): Consultant#1 Consultant#2 The Wesley Group Summit Law Kevin Wesley, Consultant Otto Klein, Consultant P.O. Box 7164, Kennewick, WA 99336 315 Fifth Avenue South Suite 1000, Seattle, WA 98104 Amount Paid During Fiscal Year: $14,120.87 Amount Paid During Fiscal Year: $4,988.50 Terms and Conditions Terms and Conditions Rates(E.G., Hourly, Etc.): $100 per hour Rates(E.G., Hourly, Etc.): $280 per hour Maximum Compensation Allowed: N/A Maximum Compensation Allowed: N/A Duration of Services: Various throughout year Duration of Services: Various throughout year Maximum Compensation Allowed: N/A Maximum Compensation Allowed: N/A Services Provided: Union Bargaining Assistance Services Provided: Union Bargaining Assistance Certified Correct this 26th day of May, 2010,to the best of my knowledge and belief: Signature HR Manager 136 City of Pasco, `Washington 2009 Comprehensive Annual Tinancial Report 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. 137 City o f Pasco, Washington zooA Comprehensive .annual Financial eport This page is intentionally left blank 138 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport CITY OF PASCO NET ASSETS BY COMPONENT LAST FIVE FISCAL YEARS TABLE 1 (accrual basis of accounting) Fiscal Year 2009 2008 2007 2006 2005 Governmental Activities Invested in Capital Assets,Net of Related Debt $ 97,601,730 $ 85,293,636 $ 74,058,193 $ 59,050,242 $ 47,803,957 Restricted 3,551,107 4,004,503 3,941,492 5,737,749 5,733,980 Unrestricted 24,110,652 23,750,360 22,709,790 15,943,732 15,365,596 Total Governmental activities net assets $125,263,489 $113,048,499 $100,709,475 $80,731,723 $68,903,533 Business-Type Activities Invested in capital assets,net of related debt 1,136,994,732 109,736,474 97,635,365 93,667,005 69,646,174 Restricted 777,045 747,042 841,693 1,798,464 1,320,801 Unrestricted 12,617,916 5,711,501 12,610,713 6,251,986 23,041,136 Total Business-Type Activities Net Assets $ 1,150,389,693 $ 116,195,017 $ 111,087,771 $ 101,717,455 $ 94,008,111 Primary Government Invested in capital assets,net of related debt 211,596,462 195,030,110 171,693,558 152,717,247 117,450,131 Restricted 4,328,152 4,751,545 4,783,185 7,536,213 7,054,781 Unrestricted 36,728,568 29,461,861 35,320,503 22,195,718 38,406,732 Total Primary Government Net Assets $ 252,653,182 $ 229,243,516 $ 211,797,246 $ 182,449,178 $ 162,911,644 139 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport CITY OF PASCO CHANGES IN NET ASSETS LAST FIVE FISCAL YEARS TABLE 2 (accrual basis of accounting) Fiscal Year 2009 2008 2007 2006 2005 Expenses Governmental activities: General Government $ 10,749,072 $ 9,595,673 $ 8,899,366 $ 8,146,549 $ 7,494,952 Judicial 922,376 813,800 750,294 741,933 620,544 Public Safety 18,742,770 18,295,546 17,213,554 16,592,068 14,003,815 Physical Environment 3,050,013 3,531,581 2,136,977 2,319,370 1,689,606 Transportation 5,137,163 4,330,917 4,242,310 1,299,239 5,944,289 Health and Human Services 58,517 56,652 39,740 44,242 45,044 Economic Environment 1,384,931 1,198,685 1,116,613 1,647,209 933,784 Culture and Recreation 6,211,790 5,982,584 5,713,083 4,872,473 4,892,990 Interest on Long Term Debt 413,393 587,421 639,570 681,825 714,225 Total governmental activities expenses 46,670,025 44,392,859 40,751,507 36,344,908 36,339,249 Business-type activities Water 6,029,123 5,990,439 5,179,548 5,050,598 3,949,704 Sewer 6,825,858 6,316,067 6,274,624 5,724,267 5,877,674 Water Process Reuse 1,558,374 1,569,048 1,503,346 1,558,076 1,465,822 Storm Water 735,092 607,018 595,276 518,408 377,349 Irrigation 1,009,032 1,014,564 936,053 748,126 544,310 Internal Service 651,442 484,570 Total business-type activates expenses 16,808,921 15,981,706 14,488,847 13,599,475 12,214,859 Total primary government expenses 29,861,104 60,374,565 55,240,354 49,944,383 48,554,108 Program Revenues Governmental Activities: Charges for Services 15,011,325 12,185,483 12,640,309 11,362,442 10,093,760 Operating grants and contributions 504,366 376,490 1,073,643 1,044,618 1,198,615 Capital grants and contributions 800,346 14,752,821 3,438,257 9,244,394 6,547,280 Total governmental activities program revenues 16,316,037 27,314,794 17,152,209 21,651,454 17,839,655 Business-type activities Charges for Services 18,721,343 17,232,355 14,306,745 14,185,692 13,111,651 Operating grants and contributions - - - - - Capital grants and contributions 3,249,969 3,253,558 6,377,351 3,625,332 14,202,830 Total business-type activites program revenues 21,971,312 20,485,913 20,684,096 17,811,024 27,314,481 Total primary government program revenues $ 38,287,349 $ 47,800,707 $ 37,836,305 $ 39,462,478 $ 45,154,136 140 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report CITY OF PASCO CHANGES IN NET ASSETS LAST FIVE FISCAL YEARS TABLE 2-continue (accrual basis of accounting) Fiscal Year 2009 2008 2007 2006 2005 Net Governmental activities $ (30,353,988) $ (17,078,065) $ (23,599,298) $ (14,693,454) $ (18,499,594) Business-type activities 5,162,391 4,504,207 6,195,249 4,211,549 15,099,622 (25,191,597) (12,573,858) (17,404,049) (10,481,905) (3,399,972) Total primary government net(expense)/revenues General Revenues and Other Changes in Net Assets Governmental Activities: Taxes Property Taxes 5,743,422 5,511,426 5,215,110 4,748,822 4,323,410 Property Taxes levied for Debt Service 532,790 544,468 559,304 554,260 559,661 Sales&Use Taxes 8,000,261 8,843,067 8,645,939 8,225,795 7,857,149 Occupational Utility Taxes 8,924,436 8,688,698 7,842,446 7,560,655 7,100,471 Other Taxes 4,686,006 4,654,617 3,729,218 3,305,358 3,396,093 Investment Earnings 734,641 986,532 1,070,349 849,559 708,699 Miscellaneous Revenues - - 1,822,224 1,562,070 2,656,353 Transfers 546,238 612,944 846,418 113,478 (583,811) Total governmental activities 29,167,794 29,841,752 29,731,008 26,919,997 26,018,025 Business-type activities Investment Earnings 398,767 425,024 639,120 622,290 534,273 Miscellaneous Revenues - - 2,708,796 3,136,171 3,586,435 Proceeds from Issuance of Long-Term Debt 835,650 - - Transfers (622,452) (612,944) (865,944) (183,227) (57,871) Total business-type activities (223,685) (187,920) 3,317,622 3,575,234 4,062,837 Total primary government 28,944,109 29,653,832 33,048,630 30,495,231 30,080,862 Changes in Net Assets Governmental activities (1,186,194) 12,763,687 6,131,710 12,226,543 7,518,431 Business-type activities 4,938,706 4,316,287 9,512,871 7,786,783 19,162,459 Total primary government $ 3,752,512 $ 17,079,974 $ 15,644,581 $ 20,013,326 $ 26,680,890 141 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report CITY OF PASCO FUND BALANCES, GOVERNMENTAL FUNDS LAST FIVE FISCAL YEARS TABLE 3 (modified accrual basis of accounting) FISCAL YEAR 2009 2008 2007 2006 2005 General Fund Reserved $ 1,897,965 $ 691,965 $ 1,516,965 $ 1,890,568 $ 58,565 Unreserved 7,916,888 10,270,123 9,087,738 6,861,201 9,109,055 Total general fund 9,814,853 10,962,088 10,604,703 8,751,769 9,167,620 All Other Governmental Funds Reserved 3,280,352 3,890,439 3,910,427 5,728,634 5,727,765 Unreserved, reported in: Special revenue funds 9,129,752 9,871,589 8,259,914 6,115,159 4,912,230 Debt service funds 1,307,212 921,004 773,275 670,640 281,474 Capital projects funds (922,192) (1,749,795) (223,724) (1,158,341) (439,683) Total all other governmental funds 12,795,124 12,933,237 12,719,892 11,356,092 10,481,786 Total all governmental funds $ 22,609,977 $ 23,895,325 $ 23,324,595 $ 20,107,861 $ 19,649,406 142 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report CITY OF PASCO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST FIVE FISCAL YEARS TABLE 4 (modified accrual basis of accounting) 2009 2008 2007 2006 2005 Revenue Taxes $ 25,340,128 $ 25,716,456 $ 24,516,433 $ 23,361,504 $ 22,195,616 Licenses & Permits 1,859,786 1,615,735 1,923,553 2,116,234 2,338,294 Intergovernmental Revenue 4,040,771 5,293,226 4,719,252 10,802,165 3,494,011 Charges for Services 5,285,447 4,770,921 4,737,984 4,388,138 4,225,579 Fines & Forfeitures 1,062,837 1,016,739 1,054,334 828,758 746,043 Investment Income 616,863 858,135 960,833 781,406 661,045 Miscellaneous Revenue 2,346,099 1,452,322 1,772,971 2,021,943 2,413,914 Total Revenues 40,551,931 40,723,534 39,685,360 44,300,148 36,074,502 Expenditures General Government 4,904,210 4,526,556 4,251,117 4,284,489 4,195,820 Judicial 922,376 813,800 750,294 741,933 620,544 Public Safety 18,396,568 17,711,319 16,819,676 15,592,637 13,587,826 Physical Environment 2,066,373 2,077,596 1,825,137 1,608,581 1,443,870 Transportation 1,566,408 1,536,157 1,537,483 1,132,745 1,103,984 Health and Human Services 58,517 56,652 39,740 44,242 45,044 Economic Environment 944,035 671,118 745,388 680,863 647,534 Culture and Recreation 4,669,741 4,279,338 4,117,179 3,827,080 3,464,143 Capital Outlay 7,718,425 7,345,013 5,737,339 14,187,562 8,221,883 Debt Service Principal 1,354,284 1,108,336 1,162,174 1,120,148 1,105,858 Interest 413,393 587,421 639,570 681,825 714,225 Total Expenditures 43,014,329 40,713,306 37,625,097 43,902,105 35,150,731 Excess of revenues over (under)expenditures (2,462,397) 10,228 2,060,263 398,043 923,771 Other Financing Sources Disposition of Capital Assets - 7,076 157,018 - 40,825 Proceeds of General L-T Debt - - - - - Insurance Recoveries/other revenues 251,492 75 (103) 639 30,271 Operating Tranfers-(In) 5,431,688 5,093,754 4,984,301 5,864,429 5,321,850 Operating Tranfers-(Out) (4,527,133) (4,542,032) (4,246,752) (5,710,114) (6,068,298) Total Other Financing Sources (Uses) 1,156,047 558,873 894,464 154,954 (675,352) Net change in fund balances $ (1,306,350) $ 569,101 $ 2,954,727 $ 552,997 $ 248,419 Debt services as percentage of noncapital expenditures 5.01% 5.08% 5.65% 6.06% 6.76% 143 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report CITY OF PASCO ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS TABLE 5 Tota I TOTAL Direct Residential Commercial Other ASSESSED Tax YEAR Property Property Property VALUATION Rate 2000 $ 816,593,971 $ 96,120,203 $ 38,900,998 $ 951,615,172 3.7332 2001 $ 876,656,716 $ 105,259,330 $ 49,983,958 $ 1,031,900,004 3.6360 2002 $ 968,149,205 $ 109,023,302 $ 49,983,958 $ 1,127,156,465 3.6625 2003 $ 1,185,853,800 $ 64,831,531 $ 53,394,900 $ 1,304,080,231 3.1982 2004 $ 1,608,203,667 $ 116,704,391 $ 54,917,281 $ 1,779,825,339 3.1524 2005 $ 1,838,147,975 $ 81,762,754 $ 52,699,742 $ 1,972,610,471 2.8047 2006 $ 1,685,326,737 $ 85,759,899 $ 54,276,830 $ 1,825,363,466 2.7414 2007 $ 2,309,543,400 $ 113,973,204 $ 59,650,331 $ 2,483,166,935 2.5427 2008 $ 1,942,831,100 $ 473,136,000 $ 445,372,958 $ 2,861,340,058 2.4887 2009 $ 1,525,398,600 $ 869,876,500 $ 539,517,210 $ 2,934,792,310 2.2347 SOURCE: FRANKLIN COUNTY ASSESSORS OFFICE 144 City o f Pasco, -Washington zooA Comprehensive .annual E-tnancial Report O I O 'o m W r- O O O O U? � N O O I` p M O O co M N O O (fl O N p N (� T EH d' h 0) O 00 00 O O O co O Co (f) co 00 O M O O (D O O O (D O O O V V I` O M O O M co N O O (D O N (f7 N ER � ER eF 00 M (O m O O N O N I- M 00 O N N O (D O 00 00 (n I- N O d' N (D O O O N V O (D O M O O co M N O O (D O N (G 64 M N M c N 0 ((D m V (f1 m V M O M M M W O M V M � CD O N O O M N N O O C0 O N N K3 r EA I� N (h V I-- (f) V V r I- m m N p co [,- 00 In (D m CD d' (D 00 O m M N M 't d) O O M 0) M (D V (o f� O N O O co co — O O 0 O N N ER r ER I- 0o N I- r.- t: O m m m 00 (D d' V V 00 V' 00 00 m N p 11, O M O (D (0 O m m U-1 r-- m O t` O N O O N N O O (.0 O V' 6s ER N O O M M M N (D m M O O (f) Nt O_ T m m O (o co N I� p N m. M O V O N O O N N O O (0 O � O fH V I� (D r N V O V N m O h m m co N m O 00 O I- 00 O ,It O 00 Vt 6) O O N N 00 N I-- N N O UC M N O N D) M p M MN O O N N — O O (o O V ua N ER m N LO I- V M w (O (0 O I- V N M O co � w co r W (MD (M co N — p �' N p O p M V d) N NN O N N — O O (0 O M N { � O O N 61) m W X N 0) (O I- N 10 00 O N O I- O CO CO (OD M r W (D V M N T p O O O N p V' O N M C� (D If H 00 � O N W O O r- O M Q a Cl) �, z w O �9 J o a ~ � (~9 C7 Q W � Z J X T Z 2 (D Q -O `) i W H O > U a w ID w 3 w m° ° n O c O> } O a�i ° J C7 o O U O U � (n v O R pp v J m Z U U) R F a y 0 Si o N m O T > > ° a O w ai z o LL V o p C) D ii y (n U U U a a° N J (n � 57iiu w ft 145 City o f Pasco. -Washington zooA Comprehensive .annual E-tnancial Report 'o co LI') O O M M f� N W O 0 0 0 O LO O I- � I- O M M V O M W O N O Ln W W O 1� M O M co M (o W O 00 Ln 1` W Op W O V N O LO 1` N O W o) O N N O V V N V N N M M co U) 613 (!) 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N O M r V M O W W W 1� O LO O M O N r ((C N W N O O Ln LO LO Ln 613 Uj 613 (A (A (o (D o) O O N co (fl W Ln N N M CO l!7 N co m co � o) W a) V O W W M N W O m M W (VO U 00 L� 7 O d1 O) N N Lr co O W O M LO (O 0 (O (fl' 61) 613 U3 Ui N O O O O O O O W O W N o 0 o O W O O O W W co N I W 11 LO V O W y O M O O O M M W W V N M O W X z O O LO LO N M (O (O M O 1` O V a7 N M � M .- co O co M O F (D LO LO co () J (s> (» O J W O rJ a) F O CF7 Z O W ~ z Q Z > L N W (1N) cl H 2 W Z a) N T F Q ` ( /� w yi X O y ~ O O ~ > ¢ U U J O c o a) F LLI J T H X w w J O O U J } O X ¢ J o J Z W a) F c U 0 c UQia O H O O m w F p V d' U Z U H a F LL w j F N U 'O 4 C D J ¢ Z U 3' �' w ILL c n } z O a m O O O � F Q o °) o f o ) O a z IX o 0 0 o Q V U Q c~iJ a i U Q)) o aa)) o r O tii a C7 0_ ii U F w w O X O a) a) a) o 146 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report TOP 10 PROPERTY TAX PAYERS TABLE 8 Assessed Value Percent of City's for 2009 Tax Total; 2009 Tax Taxpayer Collection Collection Pasco Processing LLC $ 31,315,500 1.05% Twin City Foods, Inc. $ 26,237,641 0.88% The Crossing at Chapel Hill $ 16,085,000 0.54% Broadmoor LLC $ 15,377,100 0.52% Reser's Fine Foods, Inc $ 14,400,000 0.48% Wal-Mart, Inc $ 13,745,200 0.46% BNSF Railway Co. $ 13,123,113 0.44% ConAgra Foods Lamb-Weston, Inc. $ 11,754,900 0.40% Old Standard Life Insurance $ 11,234,100 0.38% Bybee Foods LLC $ 10,927,500 0.37% 5.52% Source: Franklin County Assessor's Office CITY OF PASCO TOP INDUSTRIES THAT GENERATE SALES TAX LAST THREE FISCAL YEARS TABLE 9 2009 2008 2007 Sales %of Sales %of Sales %of Tax Total Tax Total Tax Total Industries Paid Rank Sales Tax Paid Rank Sales Tax Paid Rank Sales Tax Motor Vehicle And Parts Dealers $ 938,165 1 14.19% $1,249,062 1 15.47% $1,499,029 1 18.98% Wholesale Trade, Durable Goods 637,759 2 9.64% 802,995 2 9.95% 919,467 2 11.64% Construction Of Buildings 509,346 3 7.70% 779,667 3 9.66% 394,555 6 4.99% General Merchandise Stores 471,742 4 7.13% 481,991 5 5.97% 455,016 4 5.76% Food Services, Drinking Places 391,852 5 5.92% 410,259 6 5.08% 379,450 7 4.80% Specialty Trade Contractors 379,908 6 5.74% 515,638 4 6.39% 506,250 3 6.41% Miscellaneous Store Retailers 340,609 7 5.15% 409,489 7 5.07% 466,361 5 5.90% Repair&Maintenance 322,954 8 4.88% 333,228 9 4.13% - 0.00% Building Material And Garden 296,321 9 4.48% 353,684 8 4.38% 358,462 9 4.54% Rental&Leasing Services 242,004 10 3.66% - 11 0.00% 374,108 8 4.74% Rail Transportation - 0.00% 300,253 10 3.72% - 0.00% Telecommunications - 0.00% - 12 0.00% 218,985 10 2.77% Other 2,083,078 31.50% 2,436,529 30.18% 2,327,977 29.47% Total Taxes&Percentages $6,613,738 $8,072,795 $7,899,660 70.53% Source:Washington State Department of Revenue 147 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport CITY OF PASCO RATIOS OF OUTSTANDING DEBT BY TYPE LAST SEVEN 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 2009 $ 9,945 $ 120 $ 16,549 $ 24,710 $ 51,324 942 Note: Details regarding the City's outstanding debt can be found in the notes and schedules to the financial statements. (a) See Table for population data. This ratio was calculated using population for the applicable fiscal year. 148 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report CITY OF PASCO, WASHINGTON RATIOS OF GENERAL BONDED DEBT OUTSTANDING AND BONDED DEBT PER CAPITA Last Ten Fiscal Years Table 11 Ratio of Bonded General Total Debt to Bonded Assessed Obligation Bonded Assessed Debt Per Year Population(1) Value (2) Bonds Debt Value Capita 2000 32,066 951,680,952 14,516,707 14,516,707 1.53% 452.71 2001 33,010 1,031,900,004 16,894,071 16,894,071 1.64% 511.79 2002 36,700 1,127,156,465 19,147,134 19,147,134 1.70% 521.72 2003 37,580 1,304,080,231 15,727,209 15,727,209 1.21% 418.50 2004 40,840 1,779,825,339 14,500,000 14,500,000 0.81% 355.04 2005 44,190 1,987,640,071 13,650,000 13,650,000 0.69% 308.89 2006 47,610 2,313,853,466 12,955,000 12,955,000 0.56% 272.11 2007 50,510 2,483,166,932 11,850,000 11,850,000 0.48% 234.61 2008 52,290 2,881,340,058 10,915,000 10,915,000 0.38% 208.74 2009 54,490 2,934,792,310 9,945,000 9,945,000 0.34% 182.51 Note: Details regarding the City's outstanding debt can be found in the notes and schedules to the financial statements. statements. Sources:(1) State of Washington Office of Financial Management (2) Franklin County Assesor's Office 149 City of Pasco, Washington 20oA Comprehensive .annual Financial eport CITY OF PASCO, WASHINGTON COMPUTATION OF LEGAL DEBT MARGIN For the Year Ended December 31, 2009 Table 12 Property Valuation for 2009 Taxes* $ 2,934,792,310 GENERAL PURPOSES Limit of 2.5% of Assessed Value 73,369,808 Councilmanic: Capacity (1.5% of Assessed value) 44,021,885 Less: G.O. Bonds Outstanding $ 7,570,000 T.R.A.C. Obligation 451,035 State LOCAL Loans 335,522 Airport Fire Station 84,260 Compensated Absences 1,685,672 Councilmanic Outstanding 10,126,489 Available Concilmanic Capacity Excluding Capital Leases 33,895,396 Voter-Approved: Capacity (1.0% of Assessed Value) 29,347,923 Less: G.O. Bonds Outstanding 2,375,000 Available Voter-Approved Capacity 2,375,000 Remaining Capacity for General Purposes $36,270,396 UTILITY PURPOSES Voter-Approved: Capacity (2.5% of Assessed Value) 73,369,808 Available Utility Capacity $73,369,808 OPEN SPACE AND PARK FACILITIES Voter-Approved: Capacity (2.5% of Assessed Value) $73,369,808 Available Open Space and Park Facilities Capacity $73,369,808 TOTAL AVAILABLE DEBT CAPACITY $ 183,010,012 Franklin County Assessors Office-(Steve Marks) Debt Schedule Staterrent 150 City o f Pasco. Washington 20oA Comprehensive .annual Financial eport CITY OF PASCO, WASHINGTON PLEDGED-REVENUE COVERAGE Last Ten Fiscal Years Table 13 WATER/SEWER BONDS Operating Expenses Gross Less Non-Cash Net Available Total Bond Operating Expenses and for Debt Annual Coverage Year Revenue City Taxes Service Principal Interest Debt Service Ratio 2000 $ 8,470,241 $ 3,699,707 $4,770,534 $ 516,392 $ 605,522 $1,121,914 4.25% 2001 $ 9,039,464 $ 4,073,011 $4,966,453 $ 542,296 $ 586,394 $ 1,128,690 4.40% 2002 $ 9,873,372 $ 4,468,701 $5,404,671 $ 613,200 $ 592,923 $ 1,206,123 4.48% 2003 $ 10,969,402 $ 4,997,986 $5,971,416 $ 844,299 $ 826,531 $ 1,670,830 3.57% 2004 $ 11,761,145 $ 5,302,265 $6,458,880 $ 904,248 $ 760,181 $ 1,664,429 3.88% 2005 $ 12,758,053 $ 5,759,032 $6,999,021 $1,040,000 $ 718,232 $ 1,758,232 3.98% 2006 $ 13,741,481 $ 6,165,588 $7,575,893 $1,255,020 $ 805,697 $2,060,717 3.68% 2007 $ 13,927,322 $ 6,809,089 $7,118,233 $1,271,925 $ 802,600 $2,074,525 3.43% 2008 $ 14,484,702 $ 7,366,720 $7,117,982 $1,550,000 $ 750,841 $2,300,841 3.09% 2009 $ 15,083,562 $ 7,784,832 $7,298,730 $1,405,000 $ 974,487 $2,379,487 3.07% 151 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report CITY OF PASCO, WASHINGTON SPECIAL ASSESSMENTS COLLECTIONS Last 10 Fiscal Years Table 14 Assessments Ratio of Outstanding Additions Collected Collections Outstanding Assessments and Total During to Total Assessments Year January 1, Adjustments Assessments Year Assessments December 31, 2000 6,131,801 1,041,652 7,173,453 1,063,665 14.83% 6,109,788 2001 6,109,788 (507,141) 5,602,647 1,030,404 18.39% 4,572,243 2002 4,572,243 (81,609) 4,490,634 1,637,272 36.46% 2,853,362 2003 2,853,362 962 2,854,324 774,096 27.12% 2,080,228 2004 2,080,228 92,423 2,172,651 671,723 30.92% 1,500,928 2005 1,500,928 1,523,589 3,024,517 695,074 22.98% 2,329,443 2006 2,329,443 1,291,526 3,620,969 333,447 9.21% 3,287,522 2007 3,287,522 (9,310) 3,278,212 424,814 12.96% 2,853,398 2008 2,853,398 2,163,043 5,016,441 360,464 7.19% 4,655,977 2009 4,655,977 (4,769) 4,651,208 322,862 6.94% 4,328,346 Source: Franklin County Tax Rolls 152 City o f Pasco. Washington 20oA Comprehensive .annual Financial Report CITY OF PASCO DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS TABLE 15 MEDIAN PER CAPITA AVE EARNINGS HOUSEHOLD MEDIAN SCHOOL UNEMPLOYMENT FISCAL POPULATION INCOME PER JOB INCOME AGE ENROLLMENT RATE YEAR (1) (2) (2) (6) (3) (4) (5) 2000 32,066 $ 19,259 $ 30,473 $ 40,375 28.10 8,850 7.2% 2001 33,010 $ 20,625 $ 30,598 $ 41,154 28.00 9,227 8.0% 2002 34,630 $ 20,760 $ 31,949 $ 40,900 28.19 9,785 8.5% 2003 37,580 $ 21,028 $ 33,865 $ 40,417 28.47 10,353 8.8% 2004 40,840 $ 20,971 $ 35,350 $ 40,511 27.40 11,038 7.5% 2005 44,190 $ 21,048 $ 36,134 $ 41,176 27.00 11,828 7.0% 2006 47,610 $ 21,317 $ 36,895 $ 39,831 27.00 12,516 7.0% 2007 50,510 $ 20,573 Not Available Not Available 28.66 12,610 6.4% 2008 52,290 $ 22,955 $ 34,379 $ 48,847 28.20 13,701 10.3% 2009 54,490 Not Available Not Available $ 37,818 27.40 14,437 8.0% SOURCE: (1)State of Washington Office of Financial Management (2)Washington State University Northwest Income Indicators Project Report-Information is for Franklin County (3) Tri-Cities Industrial Development Council (TRIDEC) (4)Pasco School District (October Enrollment) (5)State of Washington Employment Security Department (Franklin County Annual Average) (6)Office of Financial Management Washington State Meadian Household Income Estimates by County 153 City o f Pasco. Washington 20oA Comprehensive .annual rinanciaCleport CITY OF PASCO NEW CONSTRUCTION, BANK DEPOSITS AND PROPERTY VALUE LAST TEN FISCAL YEARS TABLE 16 NEW CONSTRUCTION (1) BUILDING FISCAL PERMITS SINGLE MULTIPLE YEAR ISSUED DWELLING DWELLING OTHER TOTAL 2000 1,586 $ 28,072,891 $ - $ 20,493,167 $ 48,566,058 2001 1,559 $ 49,459,099 $ - $ 26,066,003 $ 75,525,102 2002 2,116 $ 97,082,539 $ 181,355 $ 16,092,621 $ 113,356,515 2003 2,072 $ 116,251,761 $ 353,675 $ 55,250,442 $ 171,855,878 2004 2,331 $ 149,827,797 $ 47,338 $ 98,727,552 $ 248,602,687 2005 2,445 $ 169,290,211 $ - $ 57,002,306 $ 226,292,517 2006 2,246 $ 137,860,619 $ - $ 64,422,671 $ 202,283,290 2007 1,886 $ 104,370,010 $ 19,517 $ 83,391,801 $ 187,781,328 2008 1,677 $ 81,134,930 $ - $ 41,824,134 $ 122,959,064 2009 1,849 $ 95,998,253 $ - $ 66,096,087 $ 162,094,340 BANK DEPOSITS (IN $1,000) (2) ASSESSED TAXABLE PROPERTY FOR THE FISCAL YEAR ENDED JUNE 30 VALUATION (IN $1,000) (3) 2000 $ 253,363 2000 $ 951,615 2001 $ 262,943 2001 $ 1,031,900 2002 $ 264,776 2002 $ 1,127,156 2003 $ 280,632 2003 $ 1,304,080 2004 $ 294,457 2004 $ 1,437,070 2005 $ 298,411 2005 $ 1,779,825 2006 $ 290,520 2006 $ 2,313,853 2007 $ 329,274 2007 $ 2,483,167 2008 $ 373,969 2008 $ 2,861,340 2009 $ 528,532 2009 $ 2,934,792 SOURCE: (1) City of Pasco Building Department (2) Federal Deposit Insurance Corporation Market Share Deposit Report (Includes all banking institutions in 2009) (3) Franklin County Assessors Office 154 City of Pasco, `Washington 2009 Comprehensive ,annual TinanciaCAeport OUR THANKS TO AN EXCELLENT TEAM We recognize the contributions of the following City of Pasco employees for their contribution to this report. Each member of this team of professionals played a key role in producing this CAFR. Their dedication and teamwork are essential to the success of this report and all of their efforts are hugely appreciated. Rick Terway Administrative and Community Service Director Stephanie Brock Interim Finance Manager Michael Anderson Senior Accountant Karen Conn Staff Accountant Julie Oldman Staff Accountant 155