HomeMy WebLinkAbout2010 ACFR COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF PASCO, WASHINGTON
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2010
CITY OF
L PASCO
Prepared by
Finance Division
Dunyele Mason, CPA - Financial Services Manager
Administrative and Community Services Department
Richard G. Terway -Director
City of Pasco, -Washington 2010 Comprehensive AnnuaCF nancialReport
TABLE OF CONTENTS
INTRODUCTORY SECTION
Directory of City Officials..................................................................................... 1
Directory of Management Team.............................................................................. 2
OrganizationalChart ........................................................................................... 3
Letterof Transmittal ............................................................................................ 4
FINANCIAL SECTION
Independent Auditor's Report ................................................................................. 9
Management's Discussion and Analysis .................................................................... 11
Basic Financial Statements
Government Wide Financial Statements:
Statement of Net Assets ............................................................................................ 24
Statement of Activities..................................................................................... 25
Fund Financial Statements:
Balance Sheet—Governmental Funds......................................................................................... 26
Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds.. 27
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balance of
Governmental Funds to the Statement of Net Activities........................ .................... 28
Statement of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual-
GeneralFund.............................................................................................. 29
Statement of Net Assets - Proprietary Fund............................................................. 30
Statement of Revenues, Expenses and Changes in Net Assets—Proprietary Funds .............. 31
Statement of Cash Flows—Proprietary Fund .......................................................... 32
Statement of Net Assets—Fiduciary Funds ............................................................ 33
Statement of Changes in Net Assets—Fiduciary Funds................................................ 34
Notes to Financial Statement.................................................................................. 35
Required Supplementary Information
Schedule of funding progress.............................................................................. 69
Combining and Individual Fund Statements
Combining Balance Sheet—Nonmajor Other Governmental Funds ................................ 73
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Other Governmental Funds ................................................................ 74
Combining Statement of Expenditures—Budget to Actual—Nonmajor Other Governmental Funds 75
Combining Balance Sheet—Nonmajor Special Revenue Funds ................................... 76
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Special Revenue Funds.............. ....................................................... 80
Combining Balance Sheet—Nonmajor Debt Service Funds ................................... 84
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Debt Service Funds.......................................................................... 85
City of Pasco, -Washington 2010 Comprehensive AnnuaCF nancialReport
TABLE OF CONTENTS (continued)
Combining Balance Sheet—Nonmajor Capital Project Funds....................................... 86
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Capital Project Funds........................................................................ 87
Combining Statement of Net Assets—Nonmajor Internal Service Funds........................... 89
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets—
Nonmajor Internal Service Funds........................................................................ 90
Combining Statement of Cash Flows—Nonmajor Internal Service Funds.................................. 91
Combining Statement of Net Assets—Fiduciary Funds............................................... 93
Combining Statement of Changes in Net Assets—Fiduciary Funds................................. 95
Combining Statement of Changes in Assets and Liabilities—Agency Funds...................... 96
STATISTICAL SECTION
NetAssets by Component.............................................................................................................. 100
Changesin Net Assets.................................................................................................................... 101
Governmental Activities Tax Revenues by Source.......................................................... 103
Fund Balances of Governmental Funds.......................................................................................... 104
Changes in Fund Balances of Governmental Funds....................................................................... 105
Assessed Value of Taxable Property/Excise Taxes by Type .......................................................... 106
Property Tax Rates—Direct and Overlapping Governments ............................................................ 107
Principal Property Taxpayers........................................................................................................... 108
Principal Excise Taxpayers/Top Ten Industries that Generate Sales Tax .................................. 109
Property Tax Levies and Collections............................................................................................ 110
Ratios of Outstanding Debt by Type.............................................................................................. 111
Ratio of General Bonded Debt Outstanding................................................................................... 112
LegalDebt Margin.................................................................................................................... 113
Pledged Revenue Coverage............................................................................................................ 114
Demographic and Economic Statistics................................................................................................ 115
PrincipalEmployers........................................... ..... ........................................................... 116
Full Time Equivalent City Government Employees by Function.......................................... 117
Operating Indicators by Function.............................................................................. 118
STATE REQUIRED SCHEDULES
Schedule 9 - Long-Term Debt- L.I.D. Assessments & General Obligations and Revenue........... 121
Schedule 10—Limitation of Indebtedness.................................................................... 122
Schedule 16 -Expenditures of Federal, State and Local Financial Assistance.......................... 123
Notes to Schedule of Expenditures of Federal, State and Local Financial Assistance.................. 125
Schedule 17—Limitation on Public Works Projects Performed by Public Employees................. 126
Schedule 19 - Labor Relations Consultants.................................................................. 127
Schedule 21 —Local Government Risk Assumption...................................................... 128
Acknowledgements ............................................................................................. 130
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
DIRECTORY OF CITY OFFICIALS
As of December 31,2010
LENGTH IN TERM
ELECTED OFFICIALS POSITION EXPIRES
MAYOR
Matt Watkins 1 12/31/2011
COUNCILMEMBERS
Rebecca M.Francik 13 12/31/2011
Michael Garrison 22 12/31/2013
Robert Hoffinan 5 12/31/2013
Tom Larsen 9 12/31/2013
Saul Martinez 1 12/31/2013
AI Yenney 3 12/31/2011
LENGTH IN YEARS OF
ADMINISTRATIVE OFFICIALS POSITION SERVICE
CITY MANAGER
Gary D. Crutchfield 26 32
DEPUTY CITY MANAGER
Stanley R Strebel 1 12
PUBLIC WORKS DIRECTOR
Ahmad Qayoumi 2 mo 2 mo
ADMISTRATIVE&COMMUNITY SERVICES DIRECTOR
Richard G.Terway 1 1
COMMUNITY DEVELOPMENT DIRECTOR
Rick White 3 3
FIRE CHIEF
Robert W. Gear 2 2
POLICE CHIEF
Denis W.Austin 15 15
MUNICIPAL COURT JUDGE
Mary B.Ramirez 24 24
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City of Pasco, -Washington 2010 Comprehensive .annual T nanciaC eport
MANAGEMENT TEAM
As of December 31, 2010
City Manager
Gary Crutchfield,City Manager
Stanley R. Strebel,Deputy City Manager
Lynne Jackson,Personnel Manager
Administrative and Community Services
Richard G. Terway,Director
Dunyele Mason,Finance 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
Ahma Qayoumi,Director
Mike McShane,City Engineer
Reuel Klempel,Plant Division Manager
Jesse U. Greenough,Field Division Manager
Paul Rhoads,Assistant Field Division Manager
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City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
2010 ORGANIZATIONAL CHART
PASCO CITIZENS
PASCO CITY COUNCIL
CITY MANAGER
DEPUTY CITY MANAGER
COMMUNICATION
SPECIALIST HR MANAGER EXECUTIVE SUPPORT STAFF
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
DIV. MANAGER DIV MGR ATTORNEY
INFORMATION RECREATION
SERVICES SERVICES
MANAGER MANAGER
FINANCIAL FACILITIES
SERVICES DIVISION
MANAGER MANAGER
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City of Pasco, -Washington 2010 Comprehensive .annual T nandaC eport
6/28/2011
Honorable Mayor, Members of the City Council and Pasco Citizens
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, 2010. State law requires that within 150 days of the
close of each fiscal year all general-purpose local governments publish a complete set of
financial statements presented in conformity with general accepted accounting principles
(GAAP) and audited in accordance with generally accepted auditing standards by licensed
certified public accountants. The City of Pasco is audited by the State of Washington Auditor's
Office. Pursuant to that requirement, we are issuing an audited comprehensive financial report
for the City of Pasco for the fiscal year ended December 31, 2010.
This report consists of management's representation concerning the finances of the City of
Pasco. Consequently, management assumes full responsibility for the completeness and
reliability of the information in this report. In order to provide a basis for making these
representations, the management of the City of Pasco has established a comprehensive internal
control framework designed to protect the government's assets from loss, theft or misuse and to
compile reliable information for the preparation of the City of Pasco's financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh the benefits,
the City of Pasco's comprehensive framework of internal controls has been designed to provide
reasonable rather than absolute assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
The City of Pasco financial statements have been audited by the State's Auditor's Office. The
goal of the independent audit is to provide reasonable assurance that the financial statements of
the City of Pasco for the fiscal year ended December 31, 2010 are free of material misstatement.
The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation. The
independent auditor concluded, based upon the audit, that there was a reasonable basis for
rendering an unqualified opinion that the City of Pasco's financial statements for the fiscal year
ended December 31, 2010 are fairly presented in conformity with GAAP. The independent
auditor's report is presented as the first component of the financial section of this report.
The independent audit of the financial statement information for the year ended December 31,
2010 also required a broader federal mandated"Single Audit" designed to meet the special needs
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City of Pasco, -Washington 2010 Comprehensive AnnuaCEinanciaC eport
of federal grantor agencies. The City expended sufficient federal funds during the fiscal year to
justify this additional audit. The standards governing Single Audit engagements require the
independent auditor to report not only on the fair presentation of the financial statements but also
on the audited government's internal controls and compliance with legal requirements with
special emphasis on internal controls and legal requirements involving the administration of
federal awards.
GAAP requires that management provide a narrative introduction, overview and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The city of Pasco's MD&A can be found immediately following the report
of the independent auditors.
Profile of the City of Pasco
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 2010 Tri-Cities Metropolitan Area population was approximately
235,700 and Pasco's estimated population was 59,781. This represents an 86% 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.
Local Economy
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
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CiLy of Pasco, -Washington 2010 Comprehensive Annual Financial Report
estimated total farm acreage of 492,000, comprised of 242,000 irrigated acres and 250,000 dry
land acres. Portions of the County lie within one of the world's largest irrigation districts, the
U.S. Bureau of Reclamation's Columbia Basin Irrigation Project. In the early 1940's Congress
authorized a plan to provide for irrigation of over 1 million acres in the Columbia Basin region
of Washington State. Construction of the Irrigation Project began in 1946. The Grand Coulee
Dam is the only source of both water and hydroelectric power for the Project.
With the growth in farm production due to the Irrigation Project, food processing has become a
major factor in the area's economy. The Pasco Processing Center (the "Center"), a 240-acre
industrial park designed for the food processing industry, was constructed in 1995. The Center
provides food processors the unique advantage of handling wastewater disposal via the City's
industrial wastewater system, which has additional capacity for growth. The Center was
developed jointly by the City, Port of Pasco and Franklin County Public Utility District. This
system pumps the wastewater into huge storage ponds, which is sprayed onto crops for disposal.
These storage ponds allow processors to operate year round. Since completion, several large
food processors have built plants that utilize this facility. J.R. Simplot Food Group (now 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 I, LLC, owners of the Tri-City Dust Devils and
a single A affiliate of the Colorado Rockies of Major League Baseball.
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CiLV of Pasco, -Washington 2010 Comprehensive Annual Financial Report
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, train and bus depots.
Summary of Current and Future Economic Outlook
The economy both nationally and locally has been a major news topic for the past several years.
Incidents that have negatively impacted the economy are: the slowdown in the economy
particularly in the manufacturing sector; inflation and interest rate increases, corporate
bankruptcies, layoffs and relocations; the War on Terrorism; and soaring energy prices,
particularly gasoline.
Franklin County, in which Pasco is located, is currently one of the fastest growing areas in
Washington State. In 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 1-182 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 and was completed on time to start school in the fall of 2009.
In 2010, the City issued a total of 2,187 building permits representing approximately $158
million in construction costs. Of the total permits, 530 were for new single-family residences
which equates to $111 million in assessed valuation. The average value of a new home in Pasco
was just under$210,000 in 2010.
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City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
Acknowledgments
The preparation of this report would not have been possible without the efficient and dedicated
service of the entire Finance Division staff of the Administrative and Community Services
Department. We would like to express our appreciation to all those who assisted and contributed
to the preparation 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.
Respectively submitted,
Gary Crutchfield Richard G. Terway Dunyele Mason
City Manager Director Administrative & Financial Services Manager
Community Services
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City of Pasco, -Washington 2010 Comprehensive AnnuaCTikanciaCR.eport
� �4
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
June 27, 2011
Mayor and City Council
City of Pasco
Pasco, Washington
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of the
City of Pasco, Franklin County, Washington, as of and for the year ended December 31, 2010 as
listed in the table of contents. These financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Pasco, Franklin County,
Washington, as of December 31, 2010, and the changes in financial position and, where
applicable, cash flows thereof, and the budgetary comparison for the General fund for the year
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City of Pasco, -Washing ton 2010 Comprehensive .annualTinanciaC eport
then ended in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we will also issue our report dated June 27,
2011, on our consideration of the City's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts and grant agreements
and other matters. That report will be issued under separate cover in the City's Single Audit
Report. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
The management's discussion and analysis and information on pensions and postemployment
benefits other than pensions are not a required part of the basic financial statements but are
supplementary information required by the Governmental Accounting Standards Board. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
Our audit was performed for the purpose of forming an opinion on the financial statements that
collectively comprise the City's basic financial statements. The accompanying information
listed as combining and individual fund financial statements and supplemental information is
presented for purposes of additional analysis and is not a required part of the basic financial
statements. This information has been subjected to auditing procedures applied in the audit of
the basic financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the basic financial statements taken as a whole.
The information identified in the table of contents as the Introductory and Statistical Section is
presented for purposes of additional analysis and is not a required part of the basic financial
statements of the City. Such information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on
it.
Sincerely,
BRIAN SONNTAG, CGFM
STATE AUDITOR
Insurance Building,P.O.Box 40021 • Olympia,Washington 98504-0021 • (360)902-0370 •TDD Relay(800)
833-6388
FAX(360)753-0646 • http://www.sao.wa.gov
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City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
As management of the City of Pasco, we offer readers of the City of Pasco's financial statements
this narrative overview and analysis of the financial activities of the City of Pasco for the fiscal
year ended December 31, 2010. We encourage readers to consider the information that we have
furnished in our letter of transmittal which can be found starting on page 1 of this report. All
amounts, unless otherwise indicated, are expressed in thousands of dollars.
Financial Highlights
• The assets of the City of Pasco exceeded liabilities at the close of the most recent fiscal
year by$287,138. Of this amount, $39,641 may be used to meet the government's
ongoing obligations to the citizens and creditors.
• The city's total net assets increased by $28,364. Approximately 25% of that increase is
due to increases in business-type activities and 75%to governmental-type activities. The
overall financial position of the city has improved over the prior year.
• As of the close of the current fiscal year, the City of Pasco's governmental funds reported
combined ending fund balances of$22,572, an increase of$102 in comparison with the
prior year.
• At the end of the current fiscal year, the unreserved,undesignated fund balance for the
general fund was $9,414 which also represents 31% of total general fund expenditures.
• Spending on governmental activities included in the Capital Improvement Plan during
2010 totaled $7,164. This includes finishing up the spending on renovation of the
Memorial Pool facility($2,613 in 20 10) and the construction of several street projects.
2010 spending on the Lewis Street overpass project was $1,901. The funding for the 2010
Lewis Street expenditures was grant reimbursable.
• Spending on business activities included in the Capital Improvement Plan during 2010
totaled$12,012. The largest project was the work to finish up the new west side water
treatment plant where $6,830 was spent in 2010. Other water construction projects totaled
$1,545 and sewer construction projects totaled $3,499. The rest of the construction was
on various irrigation and process water reuse facility upgrades.
• Private development contributed a total of$20,530 in governmental activity
infrastructure and $4,154 in utility infrastructure.
• In 2010 the city issued new debt of$11,095. $785 was for special assessment bonds and
$10,310 was to refinance existing bonds and$6,000 split between water and sewer
construction.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Pasco's basic
financial statements. Those financial statements comprise three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Pasco's finances in a manner
similar to a private-sector business. The statement of net assets presents information on all of the
City of Pasco's assets and liabilities with the difference between the two reported as net assets.
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City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
Over time increases or decreases in net assets may serve as a useful indicator of whether the
financial position of the City of Pasco is improving or deteriorating.
The statement of activities presents information showing how the government's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
The government-wide financial statements distinguish functions of the City of Pasco that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
activities that are supported by business revenues. The governmental activities of the City of
Pasco include general government, public safety, utilities and environment, transportation,
economic environment, and culture and recreation. The business-type activities of the City of
Pasco include water/sewer (which cover water, sewer, irrigation, process-reuse and storm water
activities), equipment maintenance and equipment replacement services.
The government-wide financial statements can be found on pages 24-25 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Pasco, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City of Pasco can be
divided into three categories: governmental funds,proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However,
unlike the government-wide financial statements, governmental fund financial statements focus
on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a
government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statements of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City of Pasco maintains thirty-three individual governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures and changes in fund balances for the general fund, which is
a major fund as defined by the Governmental Accounting Standards Board. In 2010 the general
fund was the only major governmental fund. Data from the other funds are combined into a
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City of Pasco, -Washington 2010 Comprehensive AnnuaCEinancialR.eport
single, aggregate presentation. Individual fund data for each of these nonmajor governmental
funds is provided in the form of combining statements elsewhere in this report.
The City of Pasco adopts an annual appropriated budget for its general fund. A budgetary
comparison statement has been provided for the general fund to demonstrate compliance with
this budget.
The basic governmental fund financial statements can be found starting on page 26 of this report.
Proprietary funds. The City of Pasco maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City of Pasco uses an enterprise fund to account for
the water/sewer utility. Internal service funds are an accounting device used to accumulate and
allocate costs internally to the City of Pasco's various functions. The City of Pasco uses internal
service funds to account for its equipment maintenance and replacement, central stores and
medical/dental insurance. As the central stores, medical/dental insurance and certain equipment
maintenance and replacement services predominately benefit governmental rather than business-
type functions, they have been included with governmental activities in the government-wide
financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The enterprise fund financial statements provide separate
information for the water/sewer fund. Data from the other two internal service funds (equipment
maintenance and equipment replacement of utility equipment) are combined into a single,
aggregated presentation in the basic proprietary fund financial statements starting on page 30.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City of Pasco's
own programs. The accounting used for the fiduciary funds is much like that used for enterprise
funds except for agency funds which only show assets and liabilities.
The basic fiduciary fund financial statements can be found on pages 33 of this report.
Notes to the financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found starting on page 35.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the City of Pasco, assets exceeded liabilities by $287,138 at the close of
the most recent fiscal year. The largest portion of the City of Pasco's net assets (86%) reflects its
investment in capital assets (e.g. buildings, machinery, equipment, infrastructure, construction in
progress) less any related outstanding debt used to acquire those assets. The city of Pasco uses
these capital assets to provide services to citizens; consequently, these assets are not available for
13
City of Pasco, -Washington 2010 Comprehensive .annual TinandaC eport
future spending. Although the City of Pasco's investment in its capital assets is reported net of
related debt, it should be note that the resources needed to repay this debt must be provided from
other resources, since the capital assets themselves cannot be used to liquidate these liabilities.
Less than 1% of the City of Pasco's net assets represent resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets (14%)
totaling $39,641 may be used to meet the government's ongoing obligations to citizens and
creditors.
City of Pasco's Net Assets(in millions)
Governmental Activities Business Activities JTotal Primary Government
2010 2009 2010 2009 2010 2009
Current assets $ 31.62 $ 34.53 $ 15.05 $ 15.46 $ 46.67 $ 49.99
Capital and noncurrent assets 134.30 111.34 167.38 156.95 301.68 268.29
Total assets 165.92 145.87 182.43 172.41 348.35 318.28
Current liabilities 3.88 2.36 5.59 2.06 9.47 4.42
Noncurrent liabilities 11.08 13.67 40.67 41.44 51.75 55.11
Total liabilities 14.96 16.03 46.26 43.50 61.22 59.53
Net assets:
Invested in capital,net of debt 122.34 97.71 124.77 114.05 247.11 211.76
Restricted 0.38 0.38 - 0.78 0.38 1.16
Unrestricted 28.24 31.75 11.40 14.08 39.64 45.83
Total net assets $ 150.96 $ 129.84 $ 136.17 $ 128.91 $ 287.13 $ 258.75
At the end of the current fiscal year, the city of Pasco is able to report positive balances in all
three categories of net assets, both the government as a whole, as well as for its separate
governmental and business-type activities. The same held true for the prior fiscal year.
The government's net assets increased by $28,365 during the current fiscal year. This increase
represents the degree to which ongoing revenues have exceeded increases in ongoing expenses
mostly through cost containment measures. The vast majority of the increase ($25,204 or 89%)
was through contributions of infrastructure from private development and other governmental
agencies.
14
City of Pasco, Washington 2010 Comprehensive .annual T nandaC eport
City ofPasco's Change in Net Assets(in millions)
Governmental I Business JTotal Primary Govemment
2010 2009 2010 2009 2010 2009
Program revenues:
Charges for services $ 10.29 $ 12.80 $ 18.15 $ 18.32 $ 28.44 $ 31.12
Operating grants&contributions 1.45 0.50 - - 1.45 0.50
Capital grants&contributions 25.49 13.28 4.65 3.06 30.14 16.34
General revenues:
Property taxes 6.08 6.28 6.08 6.28
Other taxes 18.90 21.61 18.90 21.61
Investment income and miscellaneous 2.81 3.85 1.06 0.40 3.87 4.25
Total revenues 65.02 58.32 23.86 21.78 88.88 80.10
Program expenses:
General Government 6.92 12.06 6.92 12.06
Public Safety 19.42 18.74 19.42 18.74
Physical Environment 1.90 3.05 1.90 3.05
Transportation 7.83 5.14 7.83 5.14
Economic Environment 1.65 0.06 1.65 0.06
Health and Human Services 0.80 0.14 0.80 0.14
Culture and Recreation 4.72 6.21 4.72 6.21
Interest on Long Term Debt 0.51 0.41 0.51 0.41
Water 6.54 $ 6.03 6.54 6.03
Sewer 6.94 $ 6.83 6.94 6.83
Water Process Reuse 1.44 $ 1.56 1.44 1.56
Storm W ater 0.79 $ 0.74 0.79 0.74
Irrigation 1.05 1.01 1.05 1.01
Total Expenses 43.75 45.81 16.76 16.17 60.51 61.98
Changes in Net Assets 21.27 12.51 7.10 5.61 28.37 18.12
Transfers 0.15 0.57 0.15 - 0.57
Total Changes in Net Assets $ 21.12 $ 13.08 $ 7.25 $ 5.61 $ 28.37 $ 18.69
Governmental activities. Governmental activities increased the City of Pasco's net assets by
$21,114 or 75% of the total change in net assets. The vast majority of the increase ($21,038) in
governmental activity related net assets was through contributions of infrastructure from private
and other governmental agencies.
While the pace of construction slowed in 2010 as compared to the prior year, strong residential
growth continued in the city. For the most part, the city weathered the general economic
challenges throughout the state with very little net change ($40 on $23,240) in the three main tax
sources: 1) property taxes; 2) sales and use taxes and 3) business and occupational taxes. The
city was able to maintain status quo on the number of approved personnel positions and avoided
lay-offs. The city was able to fund step increases and there was a 1% general cost of living wage
adjustment in 2010. Without regard to the contributed capital assets, the city's governmental
activity revenues of$43,982 which was greater than related expenses of$43,756.
15
City of Pasco, tiVas6iinqton 2010 Comprehensive AnnualTinancialReport
GOVERNMENTAL ACTIVITES —REVENUES BY SOURCE
Sources of Revenues 2010
Sources of Revenues 2009
Charges for
Investment Services
Income and 16% Investment
Miscellaneous Income and
4/ Operating Miscellaneous Charges for
p g 1%
Grants& Services
Contributions 27%
2%
Other Taxes
29% Other Taxes
37%
Operating
Grants&
Contributions
1%
Property Capital Capital
Taxes Grants& Property Grants&
10% Contributions Taxes Contributions
39% 11% 23%
GOVERNMENTAL ACTIVITIES —EXPENSES AND PROGRAM REVENUES
20.00
18.00
16.00
14.00
z 12.00
Of ...............—
10.00
J .............................. ._ _..........................................._._.
8.00
6.00
f
4.00 --...
2.00 * ....A
t0
o� �.o �• yQ �• � �e ,fie
NQ
6Q, `�J�e �.°�
0
■2010 Expense ■2010 Revenue ■2009 Expense ■2009 Revenue
16
City of Pasco, lwashington 2010 Comprehensive .annualTinancialR.eport
Business-type activities. Business-type activities increased the City of Pasco's net assets by
25%. $4,166 of the $7,251 increase (57%) was from capital contributions. The city implemented
a water rate increase and a sewer rate decrease in 2010. The water rate increase was needed due
to the construction of the west side water treatment plant. The sewer rate decrease was possible
due to the continued strong growth in sewer customers to assist in paying for the existing sewer
treatment plant. Without regard to the contributed capital assets, the city's business activity
revenues of$19,847 exceeded related expenses of$16,762.
UTILITY ACTIVITIES —EXPENSES AND PROGRAM REVENUES COMPARISON
9.00
8.00 __-
7.00
6.00 ............................................................_........................................................................
0
5.00
4.00
3.00 _ W .W..................._... . __ _..._.._._
2.00
1.00 -
J
Water Sewer Water Process Storm Water Irrigation
Reuse
■2010 Expense ■2010 Revenue 2009 Expense ■2009 Revenue
Financial Analysis of the Government's Funds.
As noted earlier, the City of Pasco uses fund accounting to ensure and demonstrate compliance
with finance related legal requirements.
Governmental funds. The focus of the City of Pasco's governmental funds is to provide
information on near-term inflows, outflows and balances of spendable resources. Such
information is useful in assessing the City of Pasco financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
17
City of Pasco, -Washington 2010 Comprehensive .annual TinanciaC eport
As of the end of the current fiscal year, the City of Pasco governmental funds reported combined
ending fund balances of $22,572 an increase of $102 in comparison with prior year.
Approximately 98% of this total amount, $22,189 constitutes unreserved fund balance which is
available for spending at the government's discretion.
The general fund is the chief operating fund of the City of Pasco. At the end of the current fiscal
year, unreserved, undesignated fund balance of the general fund was $9,414. As a measure of the
general fund's liquidity, it may be useful to compare unreserved, undesignated fund balance to
total expenditures. Unreserved,undesignated fund balance represents 31% of total expenditures.
The fund balance of the City of Pasco's general fund decreased by $442 during the current fiscal
year; which is less than I% of current year revenues. Overall revenues decreased by 2.6% ($811)
and total expenditures also decreased, but by less than 1% ($296). While the pace of construction
slowed in 2010 as compared to the prior year, strong residential growth continued in the city. For
the most part, the city weathered the general economic challenges throughout the state with very
little net change ($853 on $22,614) in tax revenues. The city was able to maintain status quo on
the number of approved personnel positions and avoided lay-offs. Two vacant police positions
were frozen for the year; one vacant Public Works position was held vacant from June through
December. The city was able to fund step increases and there was a 1% general cost of living
wage adjustment in 2010 for nonrepresented and management employees. Union employees
were paid per contract terms. The general fund revenues of $29,925 were less than related
expenses of$30,011.
Proprietary funds. The City of Pasco enterprise funds provide the same type of information
found in the government-wide financial statements, but in more detail and separately states the
activity of the Utility separate from the internal service funds. Unrestricted net assets of the
utility fund at the end of 2010 were $9,788. The working capital ratio is the current assets less
current liabilities and is a measure of liquidity for the utility to meet its short term payment
obligations. At the end of 2010 the utility is well positioned as it has current assets of$13,430
available to meet its current liability obligations of$5,584 resulting in a working capital ratio of
2.4. The utility showed income before contributions and transfers of$2,890. The city continues
to invest in both new infrastructure due to growth in population as well as replacing existing
infrastructure as needed. The city has a meter and service replacement program with the goal of
replacing the meters on an average of once every ten years. The utility actively participates with
its customer utilizing utility local improvement districts to supplement the rate payer's
participation in capital construction.
General Fund Budgetary Highlights
During the year there was an increase of 13% or $3,965 in appropriations between the original
and final amended budget for current, debt service and capital outlays. $2,404 of the increase
was related to authorization for temporary loans ($2,358) and additional transfers ($46). The
overnight loans were approved to provide liquidity to several funds in case grant revenues were
not received prior the end of the year. Grant revenue and other resources were received so most
of the loan authorization was not utilized as only$310 of interfund loans was actually issued.
18
City of Pasco, -Washington 2010 Comprehensive .annualTinancialR.eport
Capital funding authorized in both the original ($551) and revised budgets ($774) went
substantially unspent with only $186 spent in 2010. Capital spending was canceled or postponed
given the uncertainty of the economic climate in 2010 and the likelihood that current year
revenues would not exceed current year expenditures.
Actual expenditures were 96% of the revised budget, actual revenues were 102% of the revised
budget. Like capital, operating expenditures were held in check in an effort to more closely
match the actual revenues received. Actual expenditures exceeded actual revenues (before
transfers)by$86 (0.3%).
Capital Asset and Debt Administration
Capital assets. The City of Pasco's investment in capital assets for its governmental and
business-type activities as of December 31, 2010 amounts to $298,968 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, improvements
machinery and equipment, park facilities, roads, water and sewer treatment plants, etc. The total
change in the City of Pasco's capital assets (net of depreciation) for the current year was an
increase of 21,122 for governmental activities and an increase of 12,009 for business-type
activities.
Major capital asset events during the current fiscal year included the following:
• Construction spending for governmental-type activity assets totaled $7,340 and the value
infrastructure contributed to the city was $20,530 as the city continued to experience
significant growth and creation of new residential neighborhoods.
• Work continued on the Lewis Street Underpass project with $1,901 of spending primarily
for design and right of way acquisitions. Most of this amount was funded through state
and federal grants. Street improvements for Commercial Avenue improvements totaled
$773 for the year. There was $870 in spending on additional street infrastructure
improvements part of which will be recaptured through special assessments and
community development block grants. These improvements widened some roads,
resurfaced others, added sidewalks, etc. and was done in conjunction with various water,
sewer and storm water utility upgrades.
• In addition to street related infrastructure the city spent $2,613 in 2010 on the Memorial
Pool renovation. This project was started in 2009 and completed in 2010 in time for the
summer swimming season. Attendance and related revenue from the pool in 2010 was
significantly enhanced from prior years.
• Construction spending for business-type activity assets totaled $12,012 and the value of
infrastructure contributed to the city was $4,154.
• The largest project was the work to finish up the new west side water treatment plant
where $6,830 was spent in 2010. Other water construction projects totaled $1,545 and
sewer construction projects totaled $3,499. The rest of the construction was on various
irrigation and process water reuse facility upgrades.
19
City of Pasco, Washington 2010 Comprehensive .annual T nanciaC eport
Additional information on the City of Pasco's capital assets can be found in note 4. C. starting on
page 48 of this report.
City of Pasco's Capital Assets at Year-End(in millions)
(Net of Depreciation)
Governmental Activities Business-Ty ITotal Primary Government
2010 2009 2010 2009 2010 2009
Joint venture $ 0.23 $ 0.25 $ - $ - $ 0.23 $ 0.25
Land 7.12 6.47 6.60 6.59 13.72 13.06
Construction in process 2.86 4.34 12.87 6.92 15.73 11.26
Buildings and structures 25.75 23.42 36.51 38.62 62.26 62.04
Other improvements 5.72 6.16 - - 5.72 6.16
Machinery and equipment 4.00 3.45 2.17 1.88 6.17 5.33
Infrastructure 87.33 67.81 107.80 99.95 195.13 167.76
Total capital assets $ 133.01 $ 111.90 $ 165.95 $ 153.96 $ 298.96 $ 265.86
Long-term debt. At the end of the current fiscal year, the City of Pasco had total bonded debt
outstanding of$38,850. Of this amount $8,940 comprises debt backed by the full faith and credit
of the government. $29,125 of the City of Pasco bonded debt represents bonds secured primarily
by specified revenue resources (i.e. revenue bonds). The city has $785 in special assessment
bonds outstanding at the end of 2010 which are secured by the LID Guarantee Fund.
The city issued $10,310,000 in new revenue bonds. $3,000 of those proceeds were spent fund the
final phase of construction on the new west side water treatment plant. $3,000 has been set aside
for sewer construction and was still on hand at the end of the year. The remainder of the bond
proceeds was used to pay issuance costs and to refinance existing debt.
The city issued $785 in special assessment bonds to cover neighborhood improvements to street
infrastructure.
Additional information on the City of Pasco's long term liabilities can be found in note 4.F.
starting on page 52 of this report.
City of Pasco's General Obligation,Revenue Bonds and External Notes
(in millions)
Governmental Activities I IBusiness-Ty e Activities Total Primary Government
2010 2009 2010 2009 2010 2009
General Obligation Bonds $ 9.73 $ 9.96 $ - $ - $ 9.73 $ 9.96
Revenue Bonds 29.13 24.71 29.13 24.71
External Notes 0.54 0.87 15.06 16.55 15.60 17.42
Total $ 10.27 $ 10.83 $ 44.19 $ 41.26 $ 54.46 $ 52.09
20
City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
Economic Factors and Next Year's Budgets and Rates (amounts not in thousands)
While the rest of the nation continued its struggle to recover from the financial crisis, the Tri-
Cities (and Pasco) realized a substantial degree of recovery. The community's population is
expected to approach 60,000 persons next year as the relatively stable local economy and low
interest rates are expected to foster more housing construction. The general fund is expected to
resume its growth trend in 2011 albeit at a much slower pace than previously and from a lower
base. Total revenue is expected to top $30 million yet the 2011 total revenue is expected to
remain nearly $1 million less than 2008's revenue. Sales tax is expected to remain stable as tax
on construction is expected to offset decreases in other discretionary taxable sales. Utility tax
receipts which represent approximately 25% of the total general fund revenues are expected to
remain generally flat overall. Property tax receipts will be expected to increase modestly due
solely to the expected addition of at least $75 million in new taxable construction value within
the city. The depressed national economic conditions suggest that interest rates will remain low
for most of 2011. With the remainder of the city's longer term investment portfolio maturing, the
interest income from new investments in 2011 are expected to be significantly less than the past
several years even thought the overall amount invested will remain fairly stable.
Step increases have been funded in the 2011 budget but a general wage increase has not.
Contractual increases per union contracts will be funded. The medical/dental fund accounts for
the self-insured provision of medical/dental benefits in lieu of purchasing a healthcare insurance
plan from the marketplace. Over the 20+ years of self-insured operation, the average
cost/employee is notably lower than comparable cities, underscoring the importance to continue
the self insured model (despite 40% growth in claims over the past four years). The 2011 budget
anticipates another 10% increase in claims expense due largely to expected impacts of the
coverage changes imposed by the new federal health care legislation. The reserves are
considered adequate and no premium increase is planned for 2011.
Recurring revenue for streets is estimated to total $1.25 million next year, with more than half of
that in the form of state shared gas tax ($770). In addition, the street fund receives a direct
allocation of local utility tax ($200) as well as the entire cable TV franchise fee ($275). The
latter two revenue sources were assigned to the street fund a few years ago (from the general
fund) to reduce reliance on annual transfers from the general fund to support street maintenance
operations. Street construction will remain limited with the primary focus remaining on the
Lewis Street overpass.
The only fund larger than the general fund is the water/sewer utility fund. The water/sewer utility
fund has grown rapidly over the past few years as it provides services to the thousands of new
homes built over the past decade. Recurring operating revenue is expected to grow by more than
$1 million next year. Most of the growth is in the water revenue resulting from the rate increase
put in place in 2010 which was necessary to pay the debt service associated with the construction
of the new west side water plant. The city is expected to pass a 67% storm water rate increase in
April 2011 (from $1.80 monthly per household to $3.00 monthly per household). The existing
rate is not sufficient to cover current operating costs. Residential sewer rates are expected to
decrease from $26/month to $24.35/month in April as well.
21
City of Pasco, Washington 2010 Comprehensive .annualTinandaC eport
Requests for Information
This financial report is designed to provide a general overview of the City of Pasco's finances for
all those with an interest in the government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to the Financial Services Manager, PO Box 293, Pasco, WA 99301.
22
City of Pasco, -Washington 2010 Comprehensive .annual EtnanciaCPeport
BASIC FINANCIAL STATEMENTS
23
City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
Statement of Net Assets
December 31,2010
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and cash equivalents $ 18,558,114 $ 6,643,175 $ 25,201,289
Restricted cash equivalents
Customer deposits 489,275 551,093 1,040,368
Unspent bond proceeds 3,000,000 3,000,000
Revenue bond covenants 1,304,142 1,304,142
Investments 7,692,086 2,000,000 9,692,086
Receivables(net of allowances)
Taxes 1,999,522 1,999,522
Customers 2,098,706 1,056,116 3,154,822
Grants 725,106 108,588 833,694
Other 58,682 - 58,682
Inventories 385,205 385,205
Total current assets 31,621,491 15,048,319 46,669,810
Noncurrent assets:
Restricted cash bond reserve 410,000 410,000
Special assessments 1,291,058 1,010,193 2,301,251
Capital assets not being depreciated:
Joint Ventures 230,141 230,141
Land 7,120,085 6,598,676 13,718,761
Construction work in progress 2,864,506 12,871,898 15,736,404
Capital assets net of accumulated depreciation:
Buildings and structures 25,745,253 36,513,178 62,258,431
Other improvements 5,715,200 5,715,200
Machinery and equipment 4,002,213 2,170,589 6,172,802
Infrastructure 87,333,693 107,802,974 195,136,667
Total noncurrent assets 134,302,149 167,377,508 301,679,657
Total assets 165,923,640 182,425,827 348,349,467
LIABILITIES
Current liabilities:
Accounts payable 1,691,749 697,023 2,388,772
Due to other governments 32,480 77,025 109,505
Other liabilities 3,915 32,103 36,018
Deposits payable 489,275 551,093 1,040,368
Accrued interest payable 380,385 380,385
Compensated absences-current 388,566 184,790 573,356
Loans to other governments-current 170,141 1,530,552 1,700,693
Bonds-current 1,100,129 2,135,000 3,235,129
Total current liabilities 3,876,255 5,587,971 9,464,226
Noncurrent liabilities:
Compensated absences 1,329,374 146,346 1,475,720
Net OPEB obligation 582,589 582,589
Loans to other governments 542,553 13,530,951 14,073,504
Bonds 8,625,000 26,990,000 35,615,000
Total noncurrent liabilities 11,079,516 40,667,297 51,746,813
Total liabilities 14,955,771 46,255,268 61,211,039
NET ASSETS
Invested in capital assets net ofrelated debt 122,343,127 124,770,812 247,113,939
Restricted for:
Nonexpendable permanent funds 383,484 383,484
Unrestricted 28,241,258 11,399,747 39,641,005
Total Net Assets S 150,967,869 $ 136,170,559 $ 287,138,428
The notes to the financial statements are an integral part of this statement.
24
City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
Statement of Activities
For the Year Ended December 31,2010
Net Revenue(Expenses)and Changes in Net Assets
Program Revenues Piinmry Government
Charges for Operating Capital
Services,Fines& Grants and Grants& Governmental Business-Type
Functional Programs Expenses Licenses Contributions Contributions Activities Activities Total
Primary Government:
Govemmnental Activities:
General government $ 6,920,910 $ 2,134,131 $ 11,354 $ - $ (4,775,425) $ (4,775,425)
Public safety 19,418,706 3,684,510 321,978 (15,412,218) (15,412,218)
Physicalenvitonment 1,900,241 498,678 163,082 (1,238,481) (1,238,481)
Transportation 7,831,385 1,504,310 25,325,119 18,998,044 18,998,044
Economic environment 1,651,955 16,915 24,672 (1,610,368) (1,610,368)
Health and human services 797,447 1,851,064 1,090,412 2,144,029 2,144,029
Culture and recreation 4,724,215 603,726 (4,120,489) (4,120,489)
Interest on long term debt 512,013 (512,013) (512,013)
Total GoveninentalActivihes 43,756,872 10,293,334 1,448,416 25,488,201 (6,526,921) (6,526,921)
Business-type Activities:
Water 6,537,663 7,232,738 1,221,202 1,916,277 1,916,277
Sewer 6,944,067 7,868,811 2,051,407 2,976,151 2,976,151
Water Process Reuse 1,444,383 1,724,140 279,757 279,757
Storm Water 790,932 478,695 536,670 224,433 224,433
Irrigation 1,045,156 843,276 844,990 643,110 643,110
Total Business-Type Activities 16,762,201 18,147,660 4,654,269 6,039,728 6,039,728
Total Primary Government $ 60,519,073 $ 28,440,994 $ 1,448,416 $ 30,142,470 (6,526,921) 6,039,728 (487,193)
General Revenues:
Taxes:
Property taxes 6,079,876 6,079,876
Saks taxes 8,244,771 8,244,771
B&O taxes 8,916,971 8,916,971
Excise taxes 1,738,492 1,738,492
Intergovermental 1,662,601 1,662,601
Investment income and miscellaneous 1.,299,610 1,073,404 2,373,014
Loss on disposal ofcapital assets (152,403) (11,206) (163,609)
Transfers (149,177) 149,177
Total general revenues&transfers 27,640,741 1,211,375 28,852,116
Change in Net Assets 21,113,820 7,251,103 28,364,923
Net Assets Beginning 129,854,049 128,919,456 258,773,505
Net Assets Ending S 150,967,869 $ 136,170,559 $ 287,138,428
The notes to the financial statements are an integral part ofthis statement.
25
City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
Balance Sheet
Governmental Funds
December 31,2010
Other
General Governmental
Fund Finds Total
ASSETS
Cash and cash equivalents $ 1,203,863 $ 13,298,012 $ 14,501,875
Restricted cash equivalents-deposits 489,275 489,275
Investments 6,692,086 6,692,086
Receivables(net of allowances)
Taxes 1,693,378 306,144 1,999,522
Customers 1,345,291 753,415 2,098,706
Interfund loans 310,000 310,000
Grants 24,544 700,562 725,106
Special assessments&loans 1,291,058 1,291,058
Other receivables 58,682 58,682
Total assets 11,817,119 16,349,191 28,166,310
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 336,765 776,204 1,112,969
Interfind loans payable 685,285 685,285
Due to other govenunents 24,690 6,280 30,970
Other liabilities 3,915 3,915
Customer deposits 489,275 - 489,275
Deferred revenue 1,552,090 1,719,716 3,271,806
Total liabilities 2,402,820 3,191,400 5,594,220
Fund balances
Reserved for:
Endowment principal 383,484 383,484
Unreserved,reported in:
General fund 9,414,299 9,414,299
Special revenue funds 10,845,683 10,845,683
Debt service funds 1,095,402 1,095,402
Capital project funds 833,222 833,222
Total find balances 9,414,299 13,157,791 22,572,090
Total liabilities and fund balance $ 11,817,119 $ 16,349,191
Amounts reported for governmental actwites in the statements of net assets
are different because:
Capital Assets used in governmental activities are not financial resources and
therefore are not reported in the government funds. 130,897,973
Long-term liabilities are not due and payable in the current period and therefore
are not reported in the funds.Proceeds from new debt and repayments of exisiting
debts are recorded as resources and expenditures for fiord reporting but are additions
and reductions of liabilities for government wide reporting. (12,730,607)
Other long-term assests are not available to pay for current period expenditures and,
therefore,are deferred in the finds. 3,271,806
Internal Service funds are used by management to charge the costs of certain
activities to individual fiords. The assets and liabilities of internal service finds are
included in the governmental activities in the statement of net assets. 6,956,607
Net assets of governmental activities(see page 24) S 150,967,869
The notes to the financial statements are an integral part of this statement.
26
City of Pasco, Washington 2010 Comprehensive .annual T nanciaC eport
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2010
Other
General Governmental
Fund Funds Total
REVENUES
Taxes $ 21,761,029 $ 3,198,386 $ 24,959,415
Licenses and permits 1,674,474 291,852 1,966,326
Intergovernmental revenue 1,887,298 6,041,259 7,928,557
Charges for services 2,932,969 2,569,308 5,502,277
Fines and forfeitures 898,383 45,267 943,650
Miscellaneous revenue 771,016 2,159,384 2,930,400
Total revenues 29,925,169 14,305,456 44,230,625
EXPENDITURES
Current:
General government 6,547,150 - 6,547,150
Public safety 16,503,753 2,316,635 18,820,388
Physical environment 1,635,578 219,074 1,854,652
Transportation - 2,149,462 2,149,462
Economic environment 446,758 866,258 1,313,016
Health and human services 10,707 42,849 53,556
Culture and recreation 3,794,352 962,213 4,756,565
Capital outlay:
General government 104,293 104,293
Public safety 82,583 41,503 124,086
Physical environment 867,745 867,745
Transportation 3,440,307 3,440,307
Economic environment 418,857 418,857
Culture and recreation 2,633,430 2,633,430
Debt service:
Principal 550,363 627,759 1,178,122
Interest 335,719 176,294 512,013
Total expenditures 30,011,256 14,762,386 44,773,642
Excess of revenues over(under)expenditures (86,087) (456,930) (543,017)
OTHER FINANCING SOURCES(USES)
Insurance recoveries/other sources 59 794,389 794,448
Transfers in 459,791 6,099,570 6,559,361
Transfers out (815,800) (5,892,738) (6,708,538)
Total other financing sources(uses) (355,950) 1,001,221 645,271
Net change in fiord balances (442,037) 544,291 102,254
Fund balance-beginning 9,856,336 12,613,500 22,469,836
Fundbalance-ending $ 9,414,299 $ 13,157,791 $ 22,572,090
The notes to the financial statements are an integral part of this statement.
27
City of Pasco, -Washington 2010 Comprehensive .annual TinanciaC eport
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 31,2010
(Continued from prior page)
Net change in fund balances-total governmental fiords $ 102,254
Amounts reported for governmental activities in the Statement of Activities are
different because of the following reconciling items:
Governmental fiends 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. 243,662
The statement of net assets shows a decrease in joint ventures not reported in the fiords. (16,054)
The issuance of long-term debt(e.g.bonds,notes)provides current financial resources to
governmental funds,while the repayment of the principal of long-term debt consumes current
financial resources of governmental funds.Neither transaction,however,has any affect on net
assets. (516,060)
Revenues reported in the statement of activiies that do not provide current financial resources
are not reported as revenues in the fitnds. 21,841,380
Some expenses such as for compensated absences and loss on disposal of assets reported in
the statement ofnet activities do not the use of current financial resources and,therefore,are not (734,630)
reported as expenditures in the governmental finds.
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 ofRevenues,Expenditures
and Changes in Net Fund Assets for Internal Service Funds,Net Operating Income. 193,268
Change in net assets of governmental activities(see page 25) $ 21,113,820
The notes to the financial statements are an integral part of this statement.
28
City of Pasco, lwashington 2010 Comprehensive AnnuaCTnandaCReport
Statement of Revenues,Expenditures, and Changes in Fund Balances-Budget to Actual
General Fund
For the Year Ended December 31,2010
Original Final Variance to
Budget Budget Actual Final Budget
REVENUES
Taxes $ 22,180,000 $ 22,180,000 $ 21,761,029 $ (418,971)
Licenses and permits 1,020,200 1,020,200 1,674,474 654,274
Intergovernmental revenue 1,710,017 1,710,017 1,887,298 177,281
Charges for services 2,807,220 2,807,220 2,932,969 125,749
Fines and forfeitures 927,700 927,700 898,383 (29,317)
Miscellaneous revenue 733,700 733,700 771,016 37,316
Total revenues 29,378,837 29,378,837 29,925,169 546,332
EXPENDITURES
Current:
General government 6,062,704 7,366,490 6,547,150 819,340
Public safety 15,901,001 16,159,401 16,503,753 (344,352)
Physical environment 1,730,932 1,730,932 1,635,578 95,354
Economic environment 441,725 441,725 446,758 (5,033)
Health and human services 10,000 10,000 10,707 (707)
Culture and recreation 3,816,548 3,841,548 3,794,352 47,196
Capital outlay:
General government 551,036 773,500 104,293 669,207
Public safety - - 82,583 (82,583)
Debt service:
Principal 550,375 678,315 550,363 127,952
Interest 336,425 336,425 335,719 706
Total expenditures 29,400,746 31,338,336 30,011,256 1,327,080
Excess of revenues over(under)expenditures (21,909) (1,959,499) (86,087) 1,873,412
OTHER FINANCING SOURCES(USES)
Insurance recoveries/other revenues 4,000 1,000 59 (941)
Transfers in 90,000 469,790 459,791 (9,999)
Interfimd loan issued - (2,358,400) - 2,358,400
Transfers out (770,000) (815,800) (815,800) -
Total other financing uses (676,000) (2,703,410) (355,950) 2,347,460
Net change in fiord balances (697,909) (4,662,909) (442,037) 4,220,872
Fund balance-beginning 6,000,000 6,000,000 9,856,336 3,856,336
Fund balance-ending $ 5,302,091 $ 1,337,091 $ 9,414,299 $ 8,077,208
The notes to the financial statements are an integral part of this statement.
29
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
Statement of Net Assets
Proprietary Funds
For the Year Ended December 31,2010
Internal
Water/Sewer Service
Utility Funds
ASSETS
Current assets:
Cash and cash equivalents $ 5,025,157 $ 5,674,257
Restricted cash equivalents -
Customer deposits 551,093
Unspent bond proceeds 3,000,000
Revenue bond convenants 1,304,142
Investments 2,000,000 1,000,000
Receivables(net of allowances) -
Customers 1,056,116 -
Interfimd loans-current portion 43,860
Grants 108,588 -
Special assessments-current portion
Inventory 385,205 -
Total current assets 13,430,301 6,718,117
Noncurrent assets:
Restricted cash equivalents 410,000
Special assessments 1,010,193 -
Interfiuxl loan 331,425
Capital assets not being depreciated: -
Land 6,598,676 -
Construction work in progress 12,871,898 175,133
Capital assets net ofaccumulated depreciation:
Buildings and structures 36,513,178 -
Machinery and equipment 1,115,694 2,992,880
Infrastructure 107,802,974 -
Total nonurrent assets 166,322,613 3,499,438
Total assets $ 179,752,914 $ 10,217,555
LIABILITIES
Current Liabilities:
Accounts payable 692,749 583,054
Due to other governments 77,025 1,510
Other liabilities 32,103
Customer deposits payable 551,093
Accrued interest payable 380,385
Compensated absences-current portion 184,790
Loans to other governments-current portion 1,530,552
Revenue bonds-current portion 2,135,000
Total current liabilities 5,583,697 584,564
Non-Current Liabilities
Compensated Absences 144,162 9,929
Loans to other governments 13,530,951
Revenue bonds payable 26,990,000
Total noncurrent liabilities 40,665,113 9,929
Total Liabilities 46,248,810 594,493
NET ASSETS
Investment in Capital Assets,Net
of Related Debt 123,715,917 3,168,013
Unrestricted 9,788,187 6,455,049
Total Net Assets $ 133,504,104 $ 9,623,062
Adjustment to reflect the consolidation of internal
service fiord activity related to eterprise funds 2,666,455
Net assets of business-type activiteis(see page 24) 136,170,559
The notes are an integral part of this statement.
30
City of Pasco, Washington 2010 Comprehensive .annual TinanciaC eport
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended December 31, 2010
Internal
Water/Sewer Service
Utility Funds
OPERATING REVENUES
Charges for services $ 16,913,958 $ -
Miscellaneous 114,762 5,490,210
Total Operating Revenues 17,028,720 5,490,210
OPERATING EXPENSES
Depreciation 4,901,166 616,230
Salaries and wages 2,703,482 224,849
Personnel benefits 420,884 37,034
Supplies 728,626 725,825
Services 2,282,796 3,559,518
Intergovernmental 2,246,196 -
Interfund services 1,809,856 96,418
Total operating expenses 15,093,006 5,259,874
OPERATING INCOME(LOSS) 1,935,714 230,336
NONOPERAT NG REVENUES(EXPENSES)
Interest income 298,384 154,277
Rents and leases 775,020 -
Capital charges 1,118,940 -
Capital grant revenues 488,151 -
Loss on disposal of capital assets (11,206) (145,318)
Interest expense (1,715,243) -
Total nonoperating revenues(expenses) 954,046 8,959
Income before contributions and
transfers 2,889,760 239,295
Capital contributions 4,166,118 -
Transfers in 149,177 -
Changes in net assets 7,205,055 239,295
Net assets-beginning 126,299,049 9,383,767
Net assets- ending $ 133,504,104 $ 9,623,062
The notes to the financial statements are an integral part of this statement.
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City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31,2010
Internal
Water/Sewer Service
Utility Finds
CASH FLOW FROM OPERATING ACTIVITIES:
Receipts from customers $ 17,373,025 $ 5,490,210
Payments to employees (3,124,365) (284,722)
Payments to suppliers (3,365,016) (4,365,058)
Payments to other govemn ents (2,218,873)
Payments to other fiords (1,809,856) -
Net cash provided by operating activities 6,854,915 840,430
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Nonoperating revenue 775,020 -
Net cash provided from noncapital financial activities 775,020
CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (11,363,830) (772,175)
Principal paid on debt (7,382,307)
Interest paid on debt (1,578,643)
Bond proceeds received 10,310,000
Additional cash restricted for reserves and bond proceeds on hand (4,304,142)
Payments received from notes and bans 318,267
Transfers in for capital 149,177
Capital charges 1,118,940
Capital grant and contribution proceeds 444,281
Net cash used by capital and related financing activities (12,288,257) (772,175)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investments sold and earnings 6,886,658 4,393,655
Interfimd loan repayment - 163,620
Net cash provided from investing activities 6,886,658 4,557,275
Net increase in cash and cash equivalents 2,228,336 4,625,530
Beginning cash and cash equivalents 2,796,821 1,048,727
Ending cash and cash equivalents $ 5,025,157 $ 5,674,257
NON CASH ACTIVITIES:
Capital contributions 4,166,118 -
Total noncash activities 4,166,1 18 -
RECONCILATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net Operating Income $ 1,935,714 $ 230,336
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES
Depreciation 4,901,166 616,230
Changes in assets and liabilities: -
Increase in customer and other receivables (45,018)
Decrease in prepaid expenses 9,352
Decrease in inventories 38,224 -
Decrease in cash restricted for customer deposits 508,668
Decrease in accounts payable and other liabilities (401,170) 16,703
Increase in due other governments 27,323 -
Decrease in customer deposits owing (119,345)
Increase in compensated absences 1 (22,839)
Net cash provide by operating activities $ 6,854,915 $ 840,430
The notes to the financial statements are an integral part of this statement.
32
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
Statement of Net Assets
Fiduciary Funds
December 31, 2010
Pension and
Other Postemployment Agency
Benefits Funds Funds
ASSETS
Cash and cash equivalents $ 643,558 $ 303,475
Interest receivable 7,695
Investments (at fair market value) 3,089,959
Total assets 3,741,212 303,475
LIABILITIES
Due to others - 303,475
Total liabilities - $ 303,475
NET ASSETS
Held intrust for pension benefits and other
purposes $ 3,741,212
The notes to the financial statements are an integral part of this statement.
33
City of Pasco, lwashington 2010 Comprehensive AnnuaCTnanciaCReport
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the year ended December 31, 2010
Pension and
Other Postemployment
Benefits funds
ADDITIONS
Taxes $ 41,516
Investment earnings
Interest 50,834
Dividends 58,786
Net increase in fair value of investments 229,940
Total Additions 381,076
DEDUCTIONS
Pension benefits 95,543
Medical premiums 102,531
Administrative expenses 7,200
Total deductions 205,274
Change in net assets 175,802
Net assets -beginning 3,565,410
Net assets-ending $ 3,741,212
The notes to the financial statements are an integral part of this statement.
34
City of Pasco, -Washington 2010 Comprehensive .annual T nanciaC eport
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 of Pasco does
not have any component units.
The City is a general purpose government and provides 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. The municipal golf course is owned by the city and operations are
contracted to an outside vendor. The City's basic financial statements include the financial
position and results of operations of all funds that are controlled by the City.
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. Exceptions to this general rule are for charges between the
government's utility functions and certain other service functions and various other functions
of the government. These transactions that are for products and services rendered have not
been eliminated. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned. 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 not allocate indirect costs to
35
City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
a specific function or segment. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function or segment and 2) grants and contributions that are restricted to meeting
the operational or capital requirements for a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general
revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement focus,basis of accounting, and financial statement presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Agency funds, a type of fiduciary fund, have no
measurement focus as the purpose of this type of fund is to simply receive and disburse funds
belonging to another organization. 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 30 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 reports the general fund as a major governmental fund. The general fund is the
city's primary operating fund. It accounts for all governmental financial resources, except
those required to be accounted for in a separate fund.
36
City of Pasco, -Washington 2010 Compreliensive .Annual EinancialR.eport
The City reports the Water/Sewer fund as a major proprietary fund. This fund includes water,
sewer,process water reuse, storm water and irrigation operations.
Additionally, the City reports the following fund types:
Special Revenue funds are used to account for revenues that are raised for a specific
purpose.
Debt Service funds which account for the resources accumulated and payments made for
principal and interest on long-term general obligation debt of governmental funds.
Capital Project funds are used to report significant capital acquisition and construction
separate from ongoing operating activities.
Permanent funds are used to report resources that are legally restricted to the extent that
only earnings, and not principal, may be used for purposes that support the reporting
government's programs.
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.
Pension Trust funds 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 as well as
other post employment benefits for medical services for retired LEOFF employees.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. Governments also have the option of following
subsequent private sector guidance for their business-type activities and enterprise funds,
subject to this same limitation. The City has elected not to follow subsequent private-sector
guidance.
As a general rule the effect of the interfund activity has been eliminated for the government-
wide financial statements. Exceptions are for business taxes the utility pays to the general
fund. Likewise, other charges between the government's utility functions and certain other
service functions and various other functions of the government have not been eliminated.
Eliminations of these charges would distort the direct costs and program revenues reported
for the various functions concerned.
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.
37
City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
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. Assets,liabilities and equities
1. Deposits and investments
The government's cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less from
the date of acquisition.
State statutes and the city's investment policies authorize the city to invest in obligations
of the U.S. treasury, repurchase agreements and the State Treasurer's Local Government
Investment Pool (LGIP). The interest on these investments is prorated to the various
funds on a monthly basis.
The City's deposits are covered by federal depository insurance (FDIC and FSLIC) or by
collateral held in the multiple financial institution collateral pool administered by the
Washington Public Deposit protection Commission(PDPC).
Investments are generally reported at cost which approximates fair market value for the
items held. In the pension fund mutual fund investments are reported at fair market value.
The LGIP operates in accordance with appropriate state laws and regulations. The
reported value of the pool is the same as the fair value of the pool shares.
See additional deposit investment and restricted asset information in note 4. A.
2. Receivables and payables
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as "interfund loans
payable/receivable". All other outstanding balances between funds are reported as "due
to/from other funds." Any residual balances outstanding between the governmental
activities and business-type activities are reported in the government-wide financial
statements as "internal balances".
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City of Pasco, -Washington 2010 Comprehensive .annual TinanciaC eport
Loans between funds, as reported in the fund financial statements, are included as a
liability in applicable governmental funds so that the indicated fund balance represents
amounts available for appropriation and expendable available financial resources.
Taxes receivable consist of property taxes, sales taxes, interfund taxes, business and
occupation taxes, and excise taxes. Property taxes are levied January 1 on property
values assessed as of December of the prior year. The tax levy is divided into two
billings; the first billing is due April 30 and the second is due October 31.
Customer accounts receivable consist of amounts owed from private individuals or
organizations for goods and services. The allowance for uncollectible accounts for the
ambulance fund is approximately 32% of the outstanding receivable at December 31,
2010.
Grants receivable are reported for grants where qualified expenditures have been made
prior to the end of the year.
Other receivables include municipal court receivables, and interest receivable. Accrued
interest at year end consists of amounts earned by 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 and related interest and penalties. Deferred
assessments consist of unbilled special assessments that are liens against the property
benefitted. As of December 31, 2010 $17,862 of Governmental and $41,906 of Business-
type special assessments were delinquent.
Notes and contracts receivable consist of amounts owed on open account from private
individuals or organizations for goods and services rendered. Since the City is unable by
law to grant credit to any entity, all loans receivable are related to grant monies received
from other agencies which have authorized the loan as part of the grant process.
Repayment of these loans are used to establish revolving loan funds for loans that match
the original grant purpose.
3. In ven tories
There are currently no inventories in governmental funds. Inventories in proprietary funds
are valued using a floating average of costs.
4. Restricted assets and liabilities
These accounts contain resources for construction and debt service in enterprise funds and
customer deposits.
39
City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
5. Capital assets. 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, other than
infrastructure, 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 one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. The government
reports infrastructure assets on a network and subsystem basis. Such assets are recorded at
historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation. Additions, improvements and other
capital outlays that significantly extend the useful life of an asset are capitalized. The cost
of normal maintenance and repairs and street preservation activities that do not add to the
value of the asset or materially extend asset lives are not capitalized. Assets are
depreciated over their useful lives using the straight line deprecation method.
Major outlays for capital assets and improvements are reported as Construction Work in
Progress as projects are constructed. Interest, if material to the cost of the asset that is
incurred during the construction phase of the capital assets of business-type activities is
included as part of the capitalized value of the assets constructed. Capital Assets and
improvements are capitalized once the project is completed. There were no capitalized
interest costs capitalized by the City during fiscal year 2010.
Capitalization thresholds (the dollar value above which an asset acquisitions are added to
the capital asset accounts and estimated useful lives of capital assets are as follows:
Assets Threshold Useful Lives
Land All
Building & Structure $5,000 5 - 50
Other improvements $5,000 5 - 100
Machinery&Equipment &Vehicles $5,000 2 - 50
Infrastructure $5,000 5 - 50
6 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. In governmental funds, such amounts are not accrued using the
modified accrual basis of accounting but are reported as a liability in the government-
wide 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.
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City of Pasco, -Washington 2010 Comprehensive .annual TinanciaC eport
7. Long-term obligations
In the government-wide financial statements, and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities, or proprietary
fund type statement of net assets.
Bond premiums and discounts, as well as issuance costs, when material, are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable
are reported net of the applicable bond premium or discount. Material bond issuance costs
are reported as deferred charges and amortized over the term of the related debt. Currently
there are no material amounts of bond premiums, discounts or unamortized issuance
costs.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financial sources. Premiums received on debt issuances
are reported as other financing uses. Issuance costs, whether or not withheld from actual
debt proceeds received, are reported as professional service costs.
8. Deferred revenues
Deferred Revenues are those revenues that are measurable but not yet available, under the
modified accrual basis of accounting. Accordingly they are not recorded as revenue. The
balance sheet shows the receivable, but includes deferred revenue as its offset. The City
incurred the following deferred items in 2010:
a. Uncollected property taxes levied.
b. Unbilled special assessments levied against benefited property for the cost of local
improvements. An allowance for uncollectibles is not necessary since the assessments
are liens against the property benefited.
c. Costs of grant expenditures that are eligible for reimbursement but for which the
receipt of the grant proceeds were not received.
9. Fund reserves and designations
In the fund financial statements, governmental funds report reservations of fund balance
for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance represent tentative
management plans that are subject to change.
NOTE 2 — RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
A. Explanation of certain differences between the governmental funds balance sheet
and the government-wide statement of net assets.
The governmental fund balance sheets includes a reconciliation between fund balance —
total governmental funds and net assets — governmental activities as reported in the
41
City of Pasco, -Washington 2010 Comprehensive AnnuaCEinanciaC eport
government-wide statement of net assets. One element of that reconciliation explains that
"capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds". The following shows the detail of these capital asset
changes net of accumulated depreciation:
Beginning balance of capital assets excluded from fund level:
Joint Venture $ 246,195
Land 6,466,727
Construction in process 4,336,814
Building 23,423,820
Other improvements 6,161,687
Equipment 1,344,938
Infrastructure 67,805,059
Current year spending in construction work in progress 7,164,839
Current year capital purchases 423,879
Current year capital donations received 21,037,528
Current year decrease in joint venture (16,054)
Current year capital asset disposals (152,403)
Current year depreciation (7,345,056)
Net adjustment to add to government-wide fund balance to arrive at
Net assets-governmental activities 130,897,973
Another element of that reconciliation explains that "long-term liabilities...are not due
and payable in the current period and are not reported in the funds." The following show
the detail of these liability changes:
Beginning balance of long-term liabilities excluded from fund level:
Compensated absences $ 1,710,557
Bonds and notes payable 10,830,816
Current year principal payments reducing debt (1,178,122)
Current year new debt proceeds 785,129
Current year OPEB and other exp recognized 582,227
Net adjustment to reduce government-wide fund balance to arrive at
Net assets-governmental activities $_ 3 12,70,607
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 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. One element of that reconciliation explains that
"Revenues reported in the statement of activities that do not provide current financial
42
City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
resources are not reported as revenues in the funds." $21,037,528 of this amount is due
capital assets contributed to the City.
NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary information
Scope of budget
Annual appropriated budgets are adopted for the general, special revenue, proprietary and
pension trust funds. Additionally, project basis budgets are adopted for capital projects.
All annual appropriations lapse at the fiscal year end. For governmental funds, the only
difference between the budgetary basis and generally accepted accounting principles
(GAAP) is that proceeds from interfund loans are treated as budged revenue and
repayment of interfund loans are treated as budgetary expenditures (except for loans that
are issued one day and repaid the next). Budgetary accounts are integrated in fund ledgers
for all budgeted funds. Budgets for debt service and capital project funds are adopted at
the level of the individual debt issue or projects and for the fiscal periods that correspond
to the lives of debt issues or projects and the annual expenditure piece is also included in
the appropriate fund's annual budget. Nation Council on Governmental Accounting
(CNGA) Statement 1 does not require, and the financial statements do not present
budgetary comparisons for proprietary fund types.
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:
• 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 Financial Services Manager.
• The Council conducts public hearings on the proposed budget in November and/or
December.
• The Council makes its adjustments to the proposed budget and adopts by ordinance a
final balanced budget no later than December 31.
• Within 30 days of adoption,the final budget is available to the public.
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
43
City of Pasco, -Vashinqton 2010 Comprehensive .annualTinanciaC eport
expenditures of a fund, or that affect the number of authorized employee positions, salary
ranges, hours, or other conditions of employment must be approved by the City Council.
When the City Council determines that it is in the best interest of the City to increase or
decrease the appropriation for a particular fund, it may do so by ordinance approved by
one more than the majority after holding one public hearing.
The budget amounts shown in the financial statements are the final authorized amounts as
revised during the year.
The financial statements contain the original and final budget information. The original
budget is the first complete appropriated budget. The final budget is the original budget
adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable for the fiscal year.
B. Deficitfund equity
The LID Note fund showed a deficit fund equity position at December 31, 2010. This is
expected and normal since the debt related to this debt service is from an internal loan
rather than an outside funding source. With internal financing the debt is carried within
the fund and therefore results in a negative fund balance. If the financing was external,
then no fund deficit would exist.
C. Budgetary compliance
The Senior Center fund exceeded its total budgetary authority in 2010 by $14,074. This
was primarily due to an emergency repair done at the center in late December 2010. Fund
balance is positive but there were no more scheduled council meetings to approve the
expenditure prior to the end of the year.
NOTE 4—DETAILED NOTES ON ALL FUNDS
A. Deposits, investments and restricted assets
As of December 31, 2010 the government had the following:
Weighted Average
Fair Value Maturities (Years)
Local Government Investment Pool
Total Invested Cash Equivalents $16,401,036 N/A
Investments in Federal Agencies 10,127,575 6.28
Investment in Mutual Funds 2,654,470 N/A
Total fair value 29.183.081
Portfolio weighted average maturity 2.18
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City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
Credit rating. The Local Government Investment Pool and the Federal Agencies do not have a
credit rating due to the fact that they are governmental and do not subscribe to a rating service.
Interest rate risk. It is the policy of the city to diversify its investment portfolio to eliminate the
risk of loss resulting from over concentration of assets in a specific maturity.
Credit risk. The city policy allows the following types of investments in accordance with state
law: demand or investment deposits in qualified public depositories located within the state;
United States' government bonds, notes bills; certificates of deposits from financial institutions
that participate in Washington State's Public Deposit Protection Commission's list of"Qualified
Public Depositories"; bankers acceptances, repurchase agreements and the Washington State
Treasurer's Office Local Government Investment Pool.
Concentration of credit risk. It is the policy of the city to diversify its investment portfolio to
eliminate the risk of loss resulting from overconcentration of assets in a specific class of
securities. With the Exception of U.S. Treasury securities and the State Treasurer's Local
Government Investment Pool (LGIP) no more than twenty percent of the city's total investment
portfolio should be invested in a single security type and not more than twenty percent should be
invested with a single financial institution.
Concentration of credit risk as a percentage of total investments:
Issuer Book Value %of Total
Federal Farm Credit Bank 2,000,000 7%
Federal Home Loan Bank 5,300,000 18%
Small Business Assoc 827,575 3%
Federal National Mortg Assoc 2,000,000 7%
AmFunds Mutual Funds 2,654,470 9%
Local Government Invest Pool 16,401,036 56%
29,183,081 100%
Custodial credit risk — deposits. This is the risk that in the event of a bank failure, the
governments' deposits may not be returned. The city's policy states that the maximum amount to
be placed with any one depositary shall not exceed the net worth of the institution (at the time of
investment) as determined by the State of Washington Public Deposit Protection Commission
(PDPC). According to the PDPC Act implemented August 11, 1969 financial institutions holding
public funds have requirements to collateralize those funds. The maximum liability of a public
depository is equal to ten percent of all public deposits held by that depositary at the time of the
most recent Commission report date or the average of the balances of public deposits on the four
most recent Commission report dates, whichever is greater. This amount, which is subject to
audit, represents the maximum amount the Commission can assess each depository in the event
of a loss due to default of a participating depositary. The city had $15,392,790 on deposit with
US Bank on December 31, 2010. The FDIC insures those deposits up to $250,000. US Bank is
required to collateralize 10% of the remaining funds which is $1,514,279. The temporary
custodial credit risk for uncollateralized deposits at US Bank was $13,878,511 at 12/31/10.
45
City of Pasco, -Washington 2010 Comprehensive .annual Tinancial Report
Custodial credit risk — investments. For an investment, this is the risk that, in the event of the
failure of the counterparty, the government will be able to recover the value of its investments or
other collateral securities that are in the possession of an outside party. The city limits its
custodial credit risk by holding investments that are insured and are registered or held by the
city's agent in the city's name. Certificates of deposits are entirely covered by federal depository
insurance (FDIC and FSLIC) or by collateral held in a multiple financial institution collateral
pool administered by the Washington Public Deposit Protection Commission(PDPC).
Restricted assets. The corpus of permanent funds is included in restricted assets. The
Water/Sewer utility issued bond proceeds in the current year for construction projects which were
not fully expended by the end of the year. The remaining funds are restricted for construction
purposes. Certain resources set aside for the repayment of revenue bonds are classified as
restricted assets on the balance sheet because they are maintained in a separate account and their
use is limited by applicable bond covenants. The "bond debt service" account is used by the
Water/Sewer fund to report resources set aside to subsidize potential deficiencies from the
Water/Sewer operations that could adversely affect debt service payments. The Water/Sewer
fund has constructed projects and assessed special assessments to recover certain portions of the
construction costs. Those assessments receivable are pledged to pay for the related special
assessment debt and are therefore restricted to that purpose. Cash provided from customers as
deposits are also restricted. Restricted assets are composed of the following:
Temporary Permanent
Restrictions Restrictions
City View Cemetery Endowment 383,484
Water/Sewer Debt Service account $1,304,142
Water/Sewer Debt Reserve account 410,000
Water/Sewer Bond Proceeds 3,000,000
Water/Sewer Special Assess Receivable 1,010,193
Governmental Special Assess Receivable 1,291,058
Water/Sewer Customer Deposits 551,093
General Fund Customer Deposits 489,275
B. Receivables
Taxes receivable.
Taxes receivable consist of several types of taxes: property taxes, sales taxes and business &
occupation taxes, excise taxes, gambling and admission taxes.
Property taxes. The county treasurer acts as an agent to collect property taxes levied in the
county for all taxing authorities. Collections are distributed by the 10th day of the following
month.
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City of Pasco, -Washington 2010 Comprehensive AnnuaCTnandaCReport
Property Tax Calendar
January 1 Taxes are levied and become an enforceable lien against properties.
February 14 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% of
market value.
October 31 Second installment is due.
Property taxes are recorded as a receivable when levied, offset by deferred revenue. During the
year property tax revenues are recognized when cash is collected and deferred property tax
revenue is reduced. Prior year tax levies were recorded using the same principal. The reported
balances include tax payments from the county received through December 31, 2010. Tax
receipts received by the county in December but remitted to the City in January are not material
and are included as part of the tax receivable amount reported. Delinquent taxes totaled $337,272
and since these funds are not available revenue recognition is deferred. Subsequent collections of
delinquent amounts will be recorded in revenue in the period actually received.
The City may levy up to $3.60 per $1,000 of assessed valuation for general governmental
services subject to two limitations:
a. Except as otherwise provided for, the levy for taxing districts in any year shall be set
so that the regular property taxes payable in the following year shall not exceed the
limit factor of 101% multiplied by the amount of regular property taxes lawfully
levied for such district in the highest of the three most recent years in which such
taxes were levied for such district plus an additional dollar amount calculated by
multiplying the increase in assessed value in that district resulting from new
construction, improvements to property, and any increase in the assessed value of
state-assessed property by the regular property tax levy rate of that district for the
preceding year.
b. The Washington State Constitution limits the total regular property taxes to one
percent of assessed valuation or $10 per $1,000 of value. If the taxes of all districts
exceed this amount, each is proportionately reduced until the total is at or below the
one percent limit. Effective November 29, 2007 Washington State House Bill (HB)
2416 reinstated the one percent property tax limit factor adopted by voters under
Initiative No. 747 following the invalidation of that initiative by the courts. The
provisions of HB 2416 are retroactive to and prospective from taxes levied for
collection in 2002. The retroactivity extinguishes the additional levying capacity
resulting from the November 2007 court ruling but let's stand any banked capacity
accumulated prior to the court ruling and the authority to continue to bank future
unused capacity.
In November 2009, the City approved an ordinance establishing the operating levy for 2010 of
$5,865,332 based on an assessed valuation of$2,916,936,072 and an estimated rate of$2.0108
per$1,000 of assessed value. In November 2010, the City approved an ordinance establishing the
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City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
operating levy for 2011 of$6,112,398 based on an assessed valuation of$3,102,662,066 and an
estimated rate of$1.97005 per $1,000 of assessed value.
Additionally, the city levied an additional amount to cover bond payments for the 1999 UTGO
bond for the Library Remodel ($65,757); the 1999 UTGO bond for the Fire Station ($83,293) and
for the 2002 UTGO Refunding bonds ($377,000).
Sales and excise taxes. The state is the collection agent for sales and real estate excise taxes in the
State of Washington. The vendor has until approximately the end of the following month to remit
sales tax to the state for taxable sales. The state then has approximately another month to remit
the city's portion of the tax to the city. The city's basic sales tax rate is one-half of one percent.
Utility occupation taxes. The city assessed a gross revenue tax and use on certain utilities within
the city. The rate is for these taxes are eight and one-half percent.
Other receivables
As of December 31, 2010 the city's individual major funds contain no allowance for
uncollectible accounts and nonmajor funds receivable balances include the applicable allowance
for uncollectible accounts (which relates to ambulance services) of$127,373.
Special assessments and deferred revenue. Governmental funds report deferred revenue in
connection with receivables for revenues that are not considered to be available to liquidate
liabilities of the current period. Governmental funds also defer revenue recognition in
connection with resources that have been received but not yet earned. At the end of the current
fiscal year, the various components of deferred revenue reported in the governmental funds were
as follows:
Deferred Revenue—Property Taxes $ 337,272
Deferred Revenue—Grants Receivable 700,562
Deferred Revenue—Special Assessments 900,845
Deferred Revenue—Municipal Court 1,177,326
Deferred Revenue—Other 63,801
Total $3,271,806
Notes receivable. Notes and contracts receivable consist of amounts owed on an open account
from private individuals or organizations for goods and services rendered. Since the City is
unable by law to grant credit to any entity, all loans receivable are related to grant monies
received from other agencies which have authorized the loan as part of the grant process.
Repayments of these loans are used to establish revolving loan funds for loans that match the
original grant purpose. The long term portion of those notes receivable are included in reserved
fund balance as the assets are not available to liquidate liabilities in the current period.
C. Capital Assets
Capital asset activity for the year ended December 31, 2010 was as follows:
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City of Pasco, Washington 2010 Comprehensive .annual EtnanciaCReport
Beginning Current Current
Balance Period Period Ending Balance
Governmental Activities: 01/01/10 Increases Decreases 12/31/10
Capital assets, not being depreciated
Joint Venture $ 246,195 $ 20,336 $ 36,390 $ 230,141
Land 6,466,727 708,173 54,815 7,120,085
Construction in process 4,336,814 7,339,973 8,812,281 2,864,506
Total capital assets, not being depreciated 11,049,736 8,068,482 8,903,486 10,214,732
Capital assets, being depreciated:
Building & structure 33,383,533 3,145,794 0 36,529,327
Other improvements 9,002,821 156,309 163,164 8,995,966
Machinery and equipment 8,141,989 1,283,695 456,151 8,969,533
Infrastructure 101,577,895 25,264,596 0 126,842,491
Total capital assets being depreciated 152,106,238 29,850,394 619,315 181,337,317
Less accumulated depreciation:
Building & structure 9,959,713 824,362 0 10,784,075
Other improvements 2,841,134 563,537 123,906 3,280,765
Machinery and equipment 4,693,364 616,983 343,026 4,967,321
Infrastructure 33,772,836 5,735,962 0 39,508,798
Total accumulated depreciation 51,267,047 7,740,844 466,932 58,540,959
Total capital assets, being depreciated, net 100,839,191 22,109,550 152,383 122,796,358
Governmental activities capital assets net $ 111,888,927 $ 30,178,032 $ 9,055,869 $ 133,011,090
Business Type Activities:
Capital assets, not being depreciated
Land $ 6,586,078 $ 12,598 $ - $ 6,598,676
Construction in process 6,920,489 12,012,263 6,060,854 12,871,898
Total capital assets, not being depreciated 13,506,567 12,024,861 6,060,854 19,470,574
Capital assets, being depreciated:
Building & structure 64,827,178 88,794 15,969 64,900,003
Machinery and equipment 4,313,520 879,903 322,569 4,870,854
Infrastructure 121,496,527 10,271,967 0 131,768,494
Total capital assets being depreciated 190,637,225 11,240,664 338,538 201,539,351
Less accumulated depreciation:
Building & structure 26,208,265 2,185,835 7,276 28,386,824
Machinery and equipment 2,435,847 496,465 232,047 2,700,265
Infrastructure 21,551,130 2,414,391 0 23,965,521
Total accumulated depreciation 50,195,242 5,096,691 239,323 55,052,610
Total capital assets, being depreciated, net 140,441,983 6,143,973 99,215 146,486,741
Business activities capital assets net $ 153,948,550 $ 18,168,834 $ 6,160,069 $ 165,957,315
49
Cit-o of Pasco, Washington 2010 Comprehensive .annual EtnanciaCReport
Governmental activities:
General Government $ 378,726
Security of persons & property 121,473
Physical environment 50,266
Transportation 5,708,631
Economic environment 338,939
Culture & recreation environment 747,022
Equipment replacement 395,787
Total depreciation expense -governmental activities $ 7,740,844
Business-type activities:
Water $ 1,543,702
Sewer 2,626,399
Process water reuse facility 224,287
Stormwater 78,492
Irrigation 403,629
Equipment replacement 220,443
Total depreciation expense - business-type activities: $ 5,096,952
Construction commitments
The City of Pasco has active construction projects as of December 31, 2010. The projects include
street construction and various utility constructions. At year end the city's commitments with
contractors are as follows:
Proj ect Remaining
Project Commitment Spent to Date Commitment
Road Projects $1,925,759 $ 929,248 $ 996,511
Housing Projects 124,000 87,809 36,191
Water Projects 2,719,913 1,336,666 1,383,247
Sewer Projects 1,218,042 534,100 683,942
D. Interfund loans receivable, payable and transfers
Interfund loans
The composition of interfund loan balances as of December 31, 2010 is as follows:
Interfund Loan Loan Due in More Interfund Loan
Receivable Purpose than 1 year Payable
General Fund Temp Cash flow $ 310,000 Nonmajor Spec Revenue Fund
Internal Service Fund Investment in LID $ 375,285 Nonmajor Debt Service Fund
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City of Pasco, Washington 2010 Comprehensive AnnuaCTikanciaCR.eport
Interfund transfers
Transfers between funds during the year ended December 31, 2010 are as follows:
TRANSFER FROM
Nonmajor Nonmajor Nonmajor
General Permanent Total
Special Debt Construction
T General - 80,000 - 379,791 - 459,791
R
A Nonmajor Special Revenue 815,800 960,000 - - 7,703 1,783,503
N
S
F Nonmajor Construction - 3,599,737 716,330 - - 4,316,067
E
R
Utility - - 149,177 - - 149,177
T
o TOTAL $ 815,800 $4,639,737 $865,507 $ 379,791 $ 7,703 $ 6,708,538
Transfers are used to 1) move unrestricted general fund revenues to finance various programs
that the government must account for in other funds in accordance with budgetary authorizations,
including amounts provided as subsidies or matching funds for various grant programs; 2) move
investment earnings or operating subsidies from one fund to its designated, authorized purpose
carried out by another fund; 3) move resources designated for construction to and from
construction funds as projects are created and/or completed.
There were one time transfers for the purpose of construction between several special revenue
funds, the general fund and the construction funds.
There were on-going transfers to move grant support from the Community Development Block
Grant fund to the general fund for qualified grant activities; from earnings in the cemetery
endowment fund to pay the general fund for maintenance activities; from earnings and fund
balance of the Boulevard Maintenance fund to the general fund to pay for boulevard maintenance
activities; from the general fund to the TRAC fund to support those activities; from the general
fund to the ambulance fund as required by state law.
E. Leases
Operating leases. The city leases its front-line police vehicles. Leases are generally for a three
year period. Generally, At the end of the three year period the lease ends and the city returns the
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City of Pasco, lwashington 2010 Comprehensive .annualTinandaC eport
vehicles. New vehicles and leases are then acquired. The following represents the future
minimum lease payments:
Year Ending
December 31 Amount
2011 $ 14,988
2012 15,736
2013 4,941
2014 2,737
Total $ 38,402
F. Long-term Debt
Changes in long-term liabilities. For the governmental activities, compensated balances are
generally liquidated by the General and Streets funds while worker's compensation claims are
liquidated by the Medical/Dental internal services fund. Long-term liability activity for the year
ended December 31, 2010 was as follows:
Changes in long-term liabilities
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
GOVERNMENTAL ACTIVITIES
General obligation bonds $ 9,960,000 $ - $ (1,020,000) $ 8,940,000 $1,035,000
Special Assessment Bond - 785,129 785,129 65,129
External Loans&Notes 870,816 - (158,122) 712,694 170,141
Compensated absences 1,710,557 1,398,263 (1,390,880) 1,717,940 388,566
Net Pension Obligation -
Net OPEB obligation 582,589 582,589 -
Governmental activity long-term liabilities $12,541,373 $ 2,765,981 1 $ (2,569,002)1 $ 12,738,352 $1,658,836
BUSINESS ACTIVITIES
Revenue bonds $24,710,000 $ 10,310,000 $ (5,895,000) $ 29,125,000 $2,135,000
External Loans&Notes 16,548,810 - (1,487,307) 15,061,503 1,530,552
Compensated absences 152,046 506,821 (327,731) 331,136 184,790
Business activity long-term liabilities $41,410,856 $ 10,816,821 1 $ (7,710,038)1 $ 44,517,639 1 $3,850,342
Long-term debt. The city issues general obligation 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. The City is also liable for notes that were entered
into for the purchase of the TRAC Facility, Animal Control facilities and police equipment.
These notes are considered obligations of the general government and are being repaid with
general governmental resources. Proprietary fiend revenues are used to repay revenue and
refunding bonds as well as certain loans. The bond issues are not subject to arbitrage but the
investments held in reserves (and the Guarantee Fund for LID 135 and 145) are subject to rebate
and yield restrictions.
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City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
GENERAL OBLIGATION BONDS
MATURITY I INTEREST ORIGINAL INSTALLMENT
PURPOSE RANGE RATERANGE AMOUNT 2011 AMOUNT
1999 LTGO Library and Fire Station 2011-2019 5.25%-5,60% $ 1,700,000 $ 149,050
2001 LTGO Refi 1994 LTGO 2011-2020 4.40%-5.05% 6,900,000 600,175
2002 LTGO Rivershore,City Hall,Refi 1995 2011-2022 3.50%-4.70% 3,635,000 316,903
2002 Civic Center 2011-2013 4.00%-4.00% 3,155,000 377,000
YEAR ENDING GOV ERNMENTA L A CTIV ITIES BUSINESS-TYPEACTNITIES
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2011 $ 1,035,000 $ 408,128
2012 1,075,000 364,634
2013 1,110,000 318,776
2014 780,000 270,355
2015 805,000 234,430
2016-2020 3,775,000 631,724
2021-2025 360,000 17,068
TOTAL $ 8,940,000 $ 2,245,115 1 $ $
SPECIAL ASSESSMENT BONDS
MATURITY I INTEREST ORIGINAL INSTALLMENT
PURPOSE RANGE RATERANGE AMOUNT 1 2011 AMOUNT
LID 145 A Street Improvments 2011-2020 2.25%-5.00% $ 785,129 $ 209,594
YEAR ENDING GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
DECEMBER 31 PRINCIPAL I INTEREST PRINCIPAL INTEREST
2011 $ 65,129 $ 144,465
2012 80,000 126,800
2013 80,000 108,800
2014 80,000 89,600
2015 80,000 70,000
2016-2020 400,000 126,000
TOTAL I $ 785,129 1 $ 665,665 $ $
REVENUE BONDS
MATURITY I INTEREST ORIGINAL INSTALLMENT
PURPOSE _ RANGE RATERANGE I AMOUNT 2011 AMOUNT
1998 Water/Sewer Series C 2011-2014 3.70%-4.80% 1,515,000 112,448
1999 Water/Sew er ULID 2011-2016 5.40%-5.80% 985,000 69,580
2001 Water/Sew er ULID 2011-2016 4.50%-4.85% 995,000 83,066
2002 Water/Sew er 2011-2022 3.50%-4.70% 5,945,000 433,438
2005 Water/Sew er 2011-2025 4.00%-1.25% 4,400,000 324,392
2007 Water/Sew er ULID 2011-2022 4.25%-4.75% 845,000 81,662
2009 Water/Sewer 2011-2029 3.00%-4.75% 10,045,000 782,425
2010 A Ref 1998B Plus New 2011-2029 3.00%-4.370% 9,070,000 1,228,375
2010T Ref 1998A 2018 4.62% 1,240,000 184,238
YEAR ENDING GOVERNMENTALACTNffIES BUSINESS-TYPEACTIVITIES
DECEMBER 31 PRINCIPAL I INTEREST PRINCIPAL INTEREST
2011 $ 2,135,000 $ 1,164,624
2012 2,100,000 1,095,490
2013 2,155,000 1,029,961
2014 2,230,000 952,765
2015 1,545,000 879,914
2016-2020 7,790,000 3,412,481
2021-2025 6,945,000 1,860,838
2026-2030 4,225,000 473,689
TOTAL $ $ $ 29,125,000 $ 10,869,762
EXTERNAL LOANS
INTEREST ORIGINAL INSTALLMENT
PURPOSE MATURITY RATE AMOUNT 2011 AMOUNT
2002 Animal Control Facililty Land 12/1/2016 6.24% $ 275,500 $ 32,160
2009 Police Vehicle Computers 6/1/2013 3.47% 194,051 $ 53,867
2006 Port Airport Fire Building 7/12/2016 4.00% 120,000 14,580
1998TRACLoan 12/1/2014 4.505-5.50% 1,197,931 102,689
Waste Water Polution Control Facilities PNTF 6/30/2015 1.00% 812,700 45,162
West Pasco Water System PWTF 95-026 6/30/2015 1.00% 2,687,300 112,744
Riverview Trunk/SE Sewer PN00-042 6/30/2020 1.00% 1,890,000 122,254
Sew er Treatment Plant Phase 1&2 SRF Loan 10/13/2015 1.00% 23,700,000' 1,719,955
YEAR ENDING GOVERNMENTAL ACTIVITIES BUSINESS-TYPEACTIVITIES
DECEMBER 31 PRINCIPAL I INTEREST PRINCIPAL INTEREST
2011 $ 170,141 $ 33,155 $ 1,530,552 $ 469,563
2012 $ 173,497 $ 23,217 1,575,357 422,143.00
2013 $ 151,149 $ 15,840 1,621,743 373,140
2014 $ 136,626 $ 9,695 1,669,767 322,502
2015 $ 43,210 $ 3,224 1,719,487 270,166
2016-2020 $ 38,071 $ 1,391 6,944,597' 532,028
TOTAL 1 $ 712,694 $ 86,522 $ 15,061,503 1 $ 2,389,542
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CiLy of Pasco, -Washington 2010 Comprehensive AnnuaCT nandaCReport
NOTE 5 - OTHER INFORMATION
A. Risk Management
The City of Pasco maintains insurance against most normal hazards except for unemployment
and automobile collision, where it has elected to become self-insured.
For unemployment claims, the City is on a 100% reimbursable program with the State where
the City pays all unemployment claims charged against it.
The City is a member of the Washington Cities Insurance Authority(WCIA).
Utilizing Chapter 48.62 RCW (self insurance regulation) and Chapter 39.3 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 over 126 members.
New members initially contract for a three-year term, and thereafter automatically renew on
an annual basis. A one-year withdrawal notice is required before membership can be
terminated. Termination does not relieve a former member from its unresolved loss history
incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes
general, automobile, police professional, public officials' errors and omissions, stop gap, and
employee benefits liability. Limits are $4 million per occurrence in the self insured layer, and
$16 million per occurrence in the re-insured layer. The excess layer is insured by the
purchase of reinsurance and is subject to aggregate sub-limits in the excess layers. The
Board of Directors determines the limits and terms of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity bonds, inland marine,
and boiler and machinery are purchased on a group basis. Various deductibles apply by type
of coverage. Property insurance and auto physical damage are self-funded from the
member's deductible to $500,000, for all perils other than flood and earthquake, and insured
above that amount by the purchase of reinsurance. (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.
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City of Pasco, lwashington 2010 Comprehensive AnnuaCTnanciaCReport
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.
B. Related organization
Pasco Public Facility District
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
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City of Pasco, Washington 2010 Comprehensive .annualTinanciaC eport
direction of the PFD Board, except as may be otherwise provided for by law herein, or in the
Charter.
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 2010, the City of Pasco paid Franklin County $231,994 in operating
expenses and $104,468 in debt service expenses.
The City's obligation for debt service is included in the debt service schedule in Note 4. F.
C. Employee retirement systems and pension plans
Public Employees' Retirement System(PERS) Plans 1, 2 And 3
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.
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City of Pasco, Washington 2010 Comprehensive .Annual EinancialR.eport
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 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.
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City of Pasco, -Washington 2010 Comprehensive .annualTinancial Report
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. 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 1,189 participating employers in PERS. Membership in PERS consisted of the
latest actuarial valuation data for the plans of June 30, 2009:
Retirees and Beneficiaries Receiving Benefits 74,857
Terminated Plan Members Entitled To but not yet Receiving Benefits 28,074
Active Plan Members Vested 105,339
Active Plan Members Non-vested 53,896
Total 262,166
Funding PolicX
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
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City of Pasco, Washington 2010 Comprehensive .annualTinandaC eport
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, 2010, were as follows:
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.
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City of Pasco, -Washington 2010 Comprehensive .annual T nanciaC eport
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
2010 $ 30,900 $ 399,013 $ 71,751
2009 $ 39,492 $ 533,321 $ 84,383
2008 $ 40,277 $ 482,824 $ 84,170
Law Enforcement Officers and Fire Fighters (LEOFF) Plans 1 & 2
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:
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City of Pasco, Washington 2010 Comprehensive .annual T nandaC eport
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 Planl provides death and disability benefits. Death benefits for survivors of Plan 1
members on active duty consist of the following: (1) If eligible spouse, 50 percent of the
FAS, plus 5 percent of FAS for each eligible surviving child, with a limitation on the
combined allowances of 60 percent of the FAS: or (2)1 If no eligible spouse, eligible children
receive 30% of FAS for the first child plus 10% for each additional child subject to a 60%
limitation of FAS, divided equally.
A one-time duty-related benefit is provided to the estate (or duly designated nominee) of a
LEOFF Plan 1 member who dies as a result of injuries or illness sustained in the course of
employment, if found eligible by the Department of Labor and Industries.
The LEOFF Plan 1 disability allowance is 50 percent of the FAS plus 5 percent for each child
up to a maximum of 60 percent. Upon recovery from disability before the age of 50, a
member is restored to service with full credit for service while disabled. Upon recovery after
age 50, the benefit continues as the greater of the member's disability allowance or service
retirement allowance.
LEOFF Plan 1 members may purchase up to five years of additional service credit once
eligible for retirement. This credit can only be purchased at the time of retirement and can be
used only provide the member with a monthly annuity that is paid in addition to the
member's allowance.
LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan
2 members may retire at the age of 50 with 20 years of service, or at the age of 53 with five
years of service, with an allowance of two percent of the FAS per year of service. The
(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.
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CiLy of Pasco, -Washington 2010 Comprehensive .annualFinancial Report
LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit
required for eligibility. The Plan 2 allowance amount is 2 percent of the FAS for each year
of service. Benefits are actuarially reduced for each year that the member's age is less than
53,unless the disability is duty-related, and to reflect the choice of a survivor option. If the
member has at least 20 years of service and is age 50,the reduction is 3 percent for each year
prior to age 53. A catastrophic disability benefit equal to 70 percent of their FAS, subject to
offsets for workers' compensation and Social Security disability benefits received, is also
available to those LEOFF Plan 2 members who are severely disabled in the line of duty and
incapable of future substantial gainful employment in any capacity.
Effective June 2010, benefits to LEOFF Plan 2 members who are catastrophically disabled
include payment of 41 eligible health care insurance premiums.
Members of LEOFF Plan 2 who leave service because of a line of duty disability are allowed
to withdraw 150 percent of accumulated member contributions. This withdrawal benefit is
not subject to federal income tax. Alternatively, members of LEOFF Plan 2 who leave
service because of a line of duty disability may be eligible to receive a retirement allowance
of at least 10 percent of FAS and 2 percent per year of service beyond five years. The first 10
percent of the FAS is not subject to federal income tax.
LEOFF Plan 2 retirees may return to work in an eligible position covered by another
retirement system, choose membership in that system and suspend their pension benefits, or
not choose membership and continue receiving pension benefits without interruption.
LEOFF Plan 2 members who apply for retirement may purchase up to five years of
additional service credit. The cost of this credit is the actuarial equivalent of the resulting
increase in the member's benefit LEOFF Plan 2 members can purchase service credit for
military service that interrupts employment. Additionally, LEOFF Plan 2 members who
become totally incapacitated for continued employment while servicing in the uniformed
services may apply for interruptive military service credit. Should any such member die
during this active duty, the member's surviving spouse or eligible child(ren) may purchase
service credit on behalf of the deceased member.
LEOFF Plan 2 members may also purchase up to 24 consecutive months of service credit for
each period of temporary duty disability.
Beneficiaries of a LEOFF Plan 2 member who is killed in the course of employment receive
retirement benefits without actuarial reduction, if found eligible by the Director of the
Department of Labor and Industries.
Benefits to eligible surviving spouses and dependent children of LEOFF Plan 2 members
killed in the course of 13 employment include the payment of on-going health care insurance
premiums paid to the Washington state Health 14 Care Authority.
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City of Pasco, -Washington 2010 Comprehensive .annual TinandaC eport
A one-time duty-related death benefit is provided to the estate (or duly designated nominee)
of a LEOFF Plan 2 member who dies as a result of injuries or illness sustained in the course
of employment, if found eligible by the Department of Labor and Industries.
There are 372 participating employers in LEOFF. Membership in LEOFF consisted of the
following as of the latest 21 actuarial valuation date for the plans of June 30, 2009:
Retirees and Beneficiaries Receiving Benefits 9,454
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 674
Active Plan Members Vested 13,363
Active Plan Members Non-vested 3,944
Total 27,435
Funding Policy
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, 2010, are 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%. 39
**The employer rate for ports and universities is 8.62%.
Both the City and the employees made the required contributions. The City's required
contributions for the years ended December 31 were as follows:
LEOFF Plan 1 LEOFF Plan 2
2010 $697 $472,818
2009 $818 $459,665
2008 $812 $444,557
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City of Pasco, -Washington 2010 Comprehensive .annual TinandaC eport
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.
The City of Pasco's obligations under the Firemen's Pension Fund are limited to the benefits
provided to firefighters retired prior to March 1, 1970. As of December 31, 2010, there were
a total of 12 individuals covered by this system, and 4 of the 12 are widows. To meet these
obligations, the City may contribute annually to the Fund the amount raised by levying all or
part of a tax of up to $0.45 per $1,000 of true and fair market value, the maximum provided
by law for maintaining the Fund. Contributions also include income from state fire insurance
premium collections.
The most recent actuarial study of the system was performed by Milliman & Robertson, Inc.
to determine the funding requirements as of September 30, 2010. All actuarial calculations
are based on RCW 41.16 and 41.18, the statutes establishing the Firefighter's Pension Fund,
and RCW 41.26, the statute establishing the Washington Law Enforcement Officers' and
Firefighters' Retirement System. Benefit provisions are established in state statute and may
be amended only by the State Legislature.
Each retiree receives the greater of the benefit payable under the Washington Law
Enforcement Officers' and Firefighters' Retirement System and the benefits available under
the provisions of prior law. Where benefits under the old law exceed those under the new for
any firefighter, the excess benefits are paid from the Firefighter's Pension Fund of the city
employing them on March 1, 1970. For a service retirement the member's benefit is $50% of
salary plus an additional 2% for each year of service in excess of 25 years. The maximum
benefit is 60% of salary. The survivor benefit is the same as the member's: if spouse — same
plus additional 5% of salary per child. The maximum benefit in either case is 60% of salary.
For a duty disability retirement the member must be disabled for a six-month waiting period,
during which time salary is payable from the Fund. The amount of the benefit is 50% of
salary plus an additional 5% for each unmarried child under the age of 18. For a non-duty
disability retirement the member must be disabled after a 90-day waiting period, during
which time salary is payable from the Fund. For non-duty related disability the benefit is the
same as duty related disability. For both the duty related and non-duty related disabilities the
survivor benefits to spouse and/or child are as follows:
Percentage of salary:
33.3%to widow only
45.8%to widow and one child
47.6%to widow and two children
50.0%to widow and three children
33.33%to children only
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CiLV of Pasco, -Washington 2010 Comprehensive .annual Financial Report
For purposes of retirement benefit payments, salaries are escalated in proportion to the
current salary of the rank from which the firefighter retired. After April 25, 1973 a minimum
benefit of $300 per month to all retired firefighters and their survivors apply. A funeral
benefit of$500 is provided to defray funeral expenses.
The cash and investment balance (at fair market value) at December 31, 2010 was $1,992,531
and retirement pension payments totaled $95,543. 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. There is no annual pension cost (APC) nor net
pension obligation (NPO) for 2010 or any of the prior five years. There was no unfunded
actuarial accrued liability.
D. 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 4. F the City is contingently liable for repayment of 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.
E. Joint ventures
Bi-County Police Information Network
The Bi-County Police Information Network (BI-PIN) was established November 24, 1982,
when an Interlocal Agreement was entered into by five participating municipal corporations,
the cities of Kennewick, Pasco, and Richland, and Benton and Franklin Counties. BI-PIN
was established to assist the participating police and sheriffs departments in the deterrence
and solution of criminal incidents. BI-PIN is served by an Executive Committee composed
of the City Manager of each of the cities and a member from each of the Boards of County
Commissioners of Benton and Franklin Counties. A liaison from the Bi-County Chiefs and
Sheriffs is an ex officio, non-voting member.
The allocation of financial participation among the participating jurisdictions is based upon
the approved budget for that year and is billed quarterly in advance to each agency. On
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City of Pasco, -Washington 2010 Comprehensive .annualTinandaC eport
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 reduced by BI-PIN in 2010 for these transactions was
$36,390
The City of Pasco's equity interest in BI-PIN was $175,270 on December 31, 2010, 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.
Metro Drug Forfeiture Fund
The Metropolitan Controlled Substance Enforcement Group (Metro) was established prior to
1987, when six participating municipal corporations entered into an Interlocal Agreement.
These entities include the cities of Kennewick, Pasco, Richland, and West Richland, and
Benton and Franklin Counties. Metro was established to account for the proceeds of
forfeitures, federal grants, and court ordered contributions, and to facilitate the disbursement
of those proceeds for the purpose of drug enforcement and investigations. Metro is served by
an Executive Committee composed of the City Manager, or designee, of each of the cities and
a member from each of the Boards of County Commissioners of Benton and Franklin
Counties. In addition, a Governing Board, consisting of the Police Chiefs from each of the
cities and the Sheriffs and Prosecuting Attorneys from the two counties, administers daily
activity.
Effective 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 $54,871 on December 31, 2010, 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.
66
City of Pasco, -Washington 2010 Comprehensive .annualTinanciaC eport
Tri-City Animal Control Authority
In 2005 the city entered into an interlocal agreement with the cities of Kennewick and
Richland to jointly fund the operations of the Animal Control Authority. The ACA was
established to provide animal control and sheltering services. ACA is served by an Executive
Committee composed of the City Manager, or designee, of each of the cities.
In 2005, the City of Pasco was designated as the Operation Jurisdiction for the ACA. As the
Operating Jurisdiction, the City provides all necessary support services for the operation such
as accounting, contract administration and risk management.
Complete separate financial statements for ACA may be obtained from the City of Pasco,
Washington.
G. Other postemployment benefits—LEOFF 1 Medical
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 the 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. Members of the Fire Pension
plan also purchase medical insurance through the City's medical insurance program.
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. Members
of the Fire Pension plan have assets set-aside in trust to contribute to their future medical
requirements.
Annual OPEB Costs and Net OPEB Obligation
The City's annual Other Post Employment Benefits (OPEB) cost is calculated based upon the
annual required contribution (ARC), an amount actuarially determined in accordance with the
parameters of Governmental Accounting Standards Board (GASB) Statement 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal
costs each year and amortize any unfunded actuarial liabilities over a period of ten years.
Entities with fewer than 100 retired LEOFF members have 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.
67
City of Pasco, -Washington 2010 Comprehensive .annual T nanciaC eport
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 2010 in-house evaluation, the Actuarial
Accrued Liability for the Fire Pension OPEB Fund is $1,812,048. As of December 31, 2010, the
fund had assets of$1,992,531.
Performing the valuation for the remaining 33 members, it is determined the Unfunded Actuarial
Accrued Liability (UAAL) is $9,693,295. The Annual Required Contribution (ARC) is
$946,632, the Annual OPEB Cost is $946,632 and the Net OPEB Obligation (NOO) is $582,589.
As mentioned previously, the City pays the medical premiums on an annual basis. Dividing the
UAAL by 30 years equals $323,110. During 2010, the City made payments totaling $364,043
for postemployment health care in the General Fund for those members.
The City uses the alternative measurement method permitted under GASB Statement No. 45. A
single retirement age of 56.22 was assumed for all active members for the purpose of
determining the actuarial accrued liability. Termination and mortality rates were assumed to
follow the LEOFF 1 termination and mortality rates used in the September 30, 2006 actuarial
valuation report issued by the office of the State Actuary (OSA). Healthcare costs and trends
were determined by Milliman and used by OSA in the State-wide LEOFF 1 medical study
performed in 2007. The results were based on grouped data with 4 active groupings and 4
inactive groupings. The actuarial cost method used to determine the actuarial accrued liability
was Projected Unit Credit. These assumptions are individually and collectively reasonable for
the purpose of this valuation.
The City reimburses 100% of the amount of validated claims for medical, prescription, and
hospitalization costs incurred by pre-Medicare retirees. Employer contributions are financed on
pay-as-you-go basis. Expenditures for postemployment health care benefits are recognized as
retirees report claims and include a provision for estimated claims incurred but not yet reported to
the City.
H. Prior period adjustments
"Net assets beginning" on the Statement of Activities in the Governmental Activities column
was restated (increased) a net total of$4,925,042. The largest component of this change
($4,641,885) is due to the prior year's statements recording several items as deferred revenue
when under the full accrual basis of accounting the revenue is not subject to the "availability"
criteria and was earned in prior periods. The remaining amount is for partially offsetting
restatements of construction work in process, cash, and compensated absences. Also several
individual utility special assessments were reported as Governmental and are now reflected in
the Utility. "Net assets beginning" on the Statement of Activities in the Business Activities
column and the Statement of Revenues, Expenses and Changes in Fund Net Assets —Proprietary
Funds were restated(increased) a net total of$1,494,865 to reflect this change.
68
City of Pasco, Washington 2010 Comprehensive .annual T nanciaC eport
Required Supplementary Information
Firemen's Pension Fund
The following is a schedule of contributions from the employer and other contributing entities for the
Firemen's Pension Fund:
Annual
Fiscal Actual Fire Actual Required Percentage
Year Insurance Employer Total Contribution ofARC
Ending Premiums Contributions Contributions (ARC) Contributed
12/31/2010 41,516 - 41,516 - N/A%
12/31/2009 39,785 - 39,785 - N/A%
12/31/2008 41,723 - 41,723 - N/A%
12/31/2007 40,123 - 40,123 - N/A%
12/31/2006 34,834 - 34,834 - N/A%
12/31/2005 32,104 - 32,104 - N/A%
Schedule ofFtuldingProgress for the Firemen's Pension Fund(rounded to thousands)
Unfimded UAAL As A
Actuarial Actuarial Actuarial Percentage
Asset Accrued Accrued Funded Covered of Covered
Valuation Date Value Liabilities Liabilities(UAAL) Ratio Payroll Payroll
December 31,1984 $ 870 $ 1,502 $ 632 58% N/A N/A%
December 31,1999 $ 3,467 $ 2,468 $ (999) 140% N/A N/A%
September 30,2005 $ 3,921 $ 2,820 $ (1,101) 139% N/A N/A%
September 30,2010 $ 1,599 $ 1,599 $ - 100% N/A N/A%
69
City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
Required Supplementary Information
Firemen's OPEB Fund
The following is a schedule of contributions from the employer and other contributing entities for the
Firemen's Pension Fund:
Annual
Fiscal Actual Fire Actual Required Percentage
Year Insurance Employer Total Contribution of ARC
Ending Premiums Contributions Contributions (ARC) Contributed
12/31/2010 - - - - N/A%
Schedule of Funding Progress for the Firemen's OPEB Fund(rounded to thousands)
Unfunded UAAL As A
Actuarial Actuarial Actuarial Percentage
Asset Accrued Accrued Funded Covered of Covered
Valuation Date Value Liabilities Liabilities(UAAL) Ratio Payroll Payroll
December 31,2010 $ 1,993 $ 1,812 $ (181) 110% N/A N/A%
70
City of Pasco, Washington 2010 Comprehensive .annual T nanciaC eport
Required Supplementary Information
Other LEOFF 1 OPEB
The following is a schedule of contributions from the employer and other contributing entities for the
Other LEOFF 1
Annual
Fiscal Actual Fire Actual Required Percentage
Year Insurance Employer Total Contnbution of ARC
Ending Premiums Contributions Contributions (ARC) Contributed
12/31/2010 - 364,043 364,043 946,632 38%
Schedule of Funding Progress for the Firemen's OPEB Fund(rounded to thousands)
Unfunded UAALAsA
Actuarial Actuarial Actuarial Percentage
Asset Accrued Accrued Funded Covered of Covered
Valuation Date Value Liabilities Liabilities (UAAL) Ratio Payroll Payroll
December 31,2010 $ - $ 9,693 $ 9,693 0% N/A N/A%
71
City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures
for particular purposes.
Debt Service Funds
Debt service funds are used to account for the accumulation of resources for, and the payment of general
long-term debt principal and interest.
Capital Project Funds
Capital project funds are used to account for the acquisition and construction of major capital facilities other than
those financed by proprietary funds and trust funds.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal,
may be used for purposes that support the reporting government's programs.
72
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
Combining Balance Sheet
Nonmajor Other Governmental Funds
December 31,2010
Total Total Total Nonmajor Total
Nonmajor Nonmajor Nonmajor Permanent Other
Other Special Debt Capital Cemetery Governmental
Revenue Service Projects Endownment Funds
ASSETS
Cash and cash equivalents $ 10,513,004 $ 1,322,066 $ 1,079,533 $ 383,409 $ 13,298,012
Receivables(net of allowances):
Taxes 279,833 26,311 - - 306,144
Customers 753,340 - - 75 753,415
Grants 700,562 - - - 700,562
Special assessments&loans 134,594 1,156,464 - - 1,291,058
TOTAL ASSETS 12,381,333 2,504,841 1,079,533 383,484 16,349,191
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 515,038 15,000 246,166 - 776,204
Interfund loans payable 310,000 375,285 - - 685,285
Due to other governments 6,135 - 145 - 6,280
Deferred revenue 700,562 1,019,154 - - 1,719,716
Other 3,915 - - - 3,915
Total liabilities 1,535,650 1,409,439 246,311 - 3,191,400
Fund balances
Reserved for:
Endowment principal 383,484 383,484
Unreserved reported in:
Special revenue fiords 10,845,683 - 10,845,683
Debt service funds 1,095,402 - 1,095,402
Capital project funds 833,222 - 833,222
Total find balances 10,845,683 1,095,402 833,222 383,484 13,157,791
TOTAL LIABILITIES AND
FUND BALANCES $ 12,381,333 $ 2,504,841 $ 1,079,533 $ 383,484 $ 16,349,191
73
City of Pasco, -Washington 2010 Comprehensive .annual financiaC eport
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
Nonmajor Other Governmental Funds
For the Year Ended December 31,2010
Total Total Cemetery Total
Nonmajor Nonmajor Total Perpetual Care Other
Other Special Debt Nonmajor Nonmajor Governmental
REVENUES Revenue Service Construction Permanent Funds
Taxes $ 2,691,368 $ 507,018 $ $ $ 3,198,386
Licenses and permits 291,852 - 291,852
Intergovernmental revenue 6,041,259 6,041,259
Charges for services 2,556,885 12,423 2,569,308
Fines and forfeitures 45,267 - - - 45,267
Miscellaneous revenue 1,184,314 967,367 - 7,703 2,159,384
Total Revenues 12,810,945 1,474,385 - 20,126 14,305,456
EXPENDITURES
Current:
General government - - - - -
Public safety 2,316,635 - 2,316,635
Physical environment 219,074 219,074
Transportation 2,149,462 - 2,149,462
Economic environment 866,258 - 866,258
Health and human services 42,849 42,849
Culture and recreation 928,733 33,480 962,213
Capital outlay:
Public safety 41,503 - 41,503
Physical environment - 867,745 867,745
Transportation 3,440,307 - 3,440,307
Economic environment 418,857 - 418,857
Culture and recreation 19,105 2,614,325 2,633,430
Debt service: - -
Principal 187,759 440,000 627,759
Interest 46,131 130,163 - 176,294
Total Expenditures 10,676,673 570,163 3,515,550 14,762,386
Excess of revenues - - - -
over(under)expenditures 2,134,272 904,222 (3,515,550) 20,126 (456,930)
OTHER FINANCING SOURCES(USES)
Miscellaneous 9,260 - 785,129 - 794,389
Transfers in 1,783,503 4,316,067 6,099,570
Transfers out (4,639,738) (865,506) (379,791) (7,703) (5,892,738)
Total other financing sources(uses) (2,846,975) (865,506) 4,721,405 (7,703) 1,001,221
Net change in fund balances (712,703) 38,716 1,205,855 12,423 544,291
Fund balance-beginning 11,558,386 1,056,686 (372,633) 371,061 12,613,500
Fund balance-ending $10,845,683 $ 1,095,402 $ 833,222 $ 383,484 $ 13,157,791
74
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
Schedule of Expenditures -Budget to Actual
Nonmajor Other Governmental Funds
For the Year Ended December 31, 2010
Final Variance to
Budget Actual Final Budget
Special Revenue Funds
City Street Fund $ 1,549,310 $ 1,397,073 $ (152,237)
Arterial Street Fund 6,320,100 3,507,628 (2,812,472)
I-82 Traffic Impact Fund 426,000 300,000 (126,000)
Street Overlay Fund 1,466,000 809,026 (656,974)
CommunityDev Block Grant Fund 2,299,126 1,171,305 (1,127,821)
ML King Community Center Fund 147,100 132,195 (14,905)
Ambulance Services Fund* 2,231,970 2,077,860 (154,110)
Contingency Fund 169,000 - (169,000)
City View Cemetery Fund 264,200 206,272 (57,928)
Blvd Perpetual Maintenance Fund 1,567,000 60,000 (1,507,000)
Athletic Program Fund 207,325 174,275 (33,050)
Senior Center Fund 279,900 293,974 14,074
Multi ModalFund 113,000 55,452 (57,548)
Bi CentenialFund 6,150 - (6,150)
Rivershore Trail&Marina Fund 25,250 14,825 (10,425)
Special Lodging Assess Fund 201,300 196,403 (4,897)
Litter Abatement Fund 20,600 13,860 (6,740)
Revolving Abatement Fund 382,100 120,944 (261,156)
TRAC Develop&Operating Fund 352,300 336,463 (15,837)
Park Development Fund 2,461,200 736,105 (1,725,095)
Capital Improvement Fund 6,259,790 3,179,791 (3,079,999)
Industrial Development Fund 855,000 - (855,000)
Stadium/Convention Ctr Fund 259,740 252,682 (7,058)
Landfill Remediation Fund 388,000 - (388,000)
Total expenditures $ 28,251,461 $ 15,036,133 $ (13,215,328)
Debt Service Funds
LID Loans 19,751 19,751 -
LID Bonds 675,393 675,393 -
Library/Fire Station Bonds 258,500 154,250 (104,250)
2002 UTGO Bonds 608,000 380,303 (227,697)
LID Guarantee 976,115 205,972 (770,143)
Total expenditures $ 2,537,759 $ 1,435,669 $ (1,102,090)
Capital Project Funds
General Purpose Construction 3,336,021 3,027,596 (308,425)
LID Construction 867,745 867,745
Total expenditures $ 4,203,766 $ 3,895,341 $ (308,425)
Permanent Funds
Cemetery Perpetual Care $ 390,000 $ 7,703 $ (382,297)
*Actual amounts are presented on a budetary basis of accounting which is different from the financial statements basis of accounting
Bad debt expense which is based on future expected loss in ambulance collections is not considered an expense for budgetary purposes.
Expenditures on a budgetary basis 2,077,860
Bad debt expense 280,278
Expenditures on a financial statement basis. $ 2,358,138
75
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31,2010
ComaRmity
City Arterial I-182 Traffic Street Development
Street Street Irripact Overlay Block Grant
Fund Fund Fund Fund Fund
ASSETS
Cash and cash equivalents $ 66,833 $ 193,759 $ 712,827 $ 2,198,163 $ 9,637
Receivables(net of allowances):
Taxes 76,303 31,491 53,176
Customers 88,977 292,253
Grants - 583,034 117,528
Special assessments&loans 134,594
TOTAL ASSETS 232,113 808,284 712,827 2,251,339 554,012
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 62,797 222,471 67,484 83,161
Interfund loans payable 310,000
Due to other governments 996
Deferred revenue - 583,034 117,528
Other
Total liabilities 62,797 806,501 67,484 510,689
Fund balances:
Unreserved 169,316 1,783 712,827 2,183,855 43,323
Total fund balances 169,316 1,783 712,827 2,183,855 43,323
TOTAL LIABILITIES AND
FUND BALANCES $ 232,113 $ 808,284 $ 712,827 $ 2,251,339 $ 554,012
76
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
M.L.King
Community Ambulance City View Athletic Senior Multi-Modal
Center Services Contingency Cemetery Blvd.Perpetual Program Center Facility
Fund Fund Fund Fund Maint.Fund Fund Fund Fund
$ 16,074 $ 60,792 $ 172,699 $ 33,275 $ 1,622,291 $ 123,985 $ 62,189 $ 82,273
20 270,666 11,393 4,500 3,258
16,094 331,458 172,699 44,668 1,622,291 123,985 66,689 85,531
5,393 11,378 1,766 11,755 18,219 3,749
1,186 789 634 499 1,649
193 672 850 2,200
5,586 12,564 - 2,555 - 13,061 19,568 7,598
10,508 318,894 172,699 42,113 1,622,291 110,924 47,121 77,933
10,508 318,894 172,699 42,113 1,622,291 110,924 47,121 77,933
$ 16,094 $ 331,458 $ 172,699 $ 44,668 $ 1,622,291 $ 123,985 $ 66,689 $ 85,531
77
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
Combining Balance Sheet
Nonmajor Special Revenue Funds (continued)
December 31,2010
Rivershore Trail Special
&Marina Lodging Litter Revolving
Bi Centennial Maintenance Assessment Abatement Abatement
Fund Fund Fund Fund Fund
ASSETS
Cash and cash equivalents $ 6,260 $ 5,387 $ 25,331 $ 11,020 $ 208,264
Receivables(net of allowances):
Taxes 15,995
Customers 3,385 668 78,220
Grants
Special assessments&loans
TOTAL ASSETS 6,260 8,772 41,326 11,688 286,484
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 130 19,917 1,130 641
Interfund loans payable
Due to other governments 382
Deferred revenue
Other
Total liabilities - 512 19,917 1,130 641
Fund balances:
Unreserved 6,260 8,260 21,409 10,558 285,843
Total fund balances 6,260 8,260 21,409 10,558 285,843
TOTAL LIABILITIES AND
FUND BALANCES $ 6,260 $ 8,772 $ 41,326 $ 11,688 $ 286,484
78
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
T.RA.C. Industrial Stadium/ Total
Development Park Capital Development Convention Landfill Nonmajor
&Operating Development Improvements &Infrastructure Center Remediation Special
Fund Fund Fund Fund Fund Fund Revenue
$ 48,640 $ 1,494,682 $ 2,071,871 $ 885,164 $ 791 $ 400,797 $ 10,513,004
17,223 68,422 17,223 279,833
753,340
700,562
134,594
65,863 1,494,682 2,140,293 885,164 18,014 400,797 12,381,333
5,047 515,038
310,000
6,135
700,562
3,915
- - - - 5,047 - 1,535,650
65,863 1,494,682 2,140,293 885,164 12,967 400,797 10,845,683
65,863 1,494,682 2,140,293 885,164 12,967 400,797 10,845,683
$ 65,863 $ 1,494,682 $ 2,140,293 $ 885,164 $ 18,014 $ 400,797 $ 12,381,333
79
City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended December 31,2010
Community
City Arterial I-182 Traffic Street Development
Street Street Impact Overlay Block Grant
REVENUES Fund Fund Fund Fund Fund
Taxes $ 203,100 $ - $ - $ 813,962 $ -
Licenses and permits 291,852
Intergovernmenta I revenue 735,405 3,391,437 563,762 1,135,966
Charges for services
Miscellaneous revenue 2,008 426,991 40,711 73,634
Total Revenues 1,232,365 3,391,437 426,991 1,418,435 1,209,600
EXPENDITURES
Current:
Public safety
Physical environment
Transportation 1,245,663 39,321 809,026
Economic environment 548,911
Health and human services
Culture and recreation
Capital outlay:
Public safety
Transportation 3,440,307
Economic environment 418,857
Debt Service:
Interest
Total Expenditures 1,245,663 3,479,628 - 809,026 967,768
Excess ofrevenues
over(under)expenditures (13,298) (88,191) 426,991 609,409 241,832
OTHER FINANCING SOURCES(USES)
Miscellaneous
Transfers in 940,000
Transfers out (151,410) (28,000) (300,000) (203,537)
Total other financing sources(uses) (151,410) 912,000 (300,000) - (203,537)
Net change in fiord balances (164,708) 823,809 126,991 609,409 38,295
Fund balance-beginning 334,024 (822,026) 585,836 1,574,446 5,028
Fund balance-ending $ 169,316 $ 1,783 $ 712,827 $ 2,183,855 $ 43,323
80
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
M.L.King
Conmiunity Ambulance City View Athletic Senior Multi-Modal
Center Services Contingency Cemetery Blvd.Perpetual Program Center Facility
Fund Fund Fund Fund Maint.Fund Fund Fund Fund
$ $ $ $ $ $ $ $
30,497 24,672
3,821 1,966,473 168,899 155,313 7
31,154 17,261 3,464 4,230 194,997 60,618 65,111 72,445
34,975 2,014,231 3,464 173,129 194,997 215,931 89,790 72,445
2,316,635
205,214
55,452
42,849
132,195 174,275 251,125
41,503
1,058
132,195 2,358,138 - 206,272 - 174,275 293,974 55,452
(97,220) (343,907) 3,464 (33,143) 194,997 41,656 (204,184) 16,993
9,260
100,000 420,000 17,703 215,000 45,800
(60,000)
100,000 420,000 - 17,703 (60,000) - 224,260 45,800
2,780 76,093 3,464 (15,440) 134,997 41,656 20,076 62,793
7,728 242,801 169,235 57,553 1,487,294 69,268 27,045 15,140
10,508 $ 318,894 $ 172,699 $ 42,113 $ 1,622,291 $ 110,924 $ 47,121 $ 77,933
81
City of Pasco, -Washington 2010 Comprehensive .annual finandaC eport
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
Nonmajor Special Revenue Funds (continued)
For the Year Ended December 31,2010
Rivershore Trail Special
&Marina Lodging Litter Revolving
Bi-Centennial Maintenance Assessment Abatement Abatement
REVENUES Fund Fund Fund Fund Fund
Taxes $ - $ - $ 189,954 $ - $ -
Licenses&Permits
Intergovernmental Revenue
Charges for Services 6,250 5,451
Fines&Forfeitures 45,267
Miscellaneous Revenue 126 13,123 350 8,661 20,267
Total Revenues 126 13,123 190,304 14,911 70,985
EXPENDITURES
Current:
Public safety
Physical environment 13,860
Transportation
Economic environment 196,403 120,944
Health and human services
Culture and recreation 14,825
Capital outlay
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Debt Service
Principal
Interest
Total Expenditures - 14,825 196,403 13,860 120,944
Excess of revenues
over(under)expenditures 126 (1,702) (6,099) 1,051 (49,959)
OTHER FINANCING SOURCES(USES)
Miscellaneous
Transfers in
Transfers out
Total other financing sources(uses) - - -
Net change in fund balances 126 (1,702) (6,099) 1,051 (49,959)
Fund balance-beginning 6,134 9,962 27,508 9,507 335,802
Fund balance-ending $ 6,260 $ 8,260 $ 21,409 $ 10,558 $ 285,843
82
City of Pasco, Washington 2010 Comprehensive AnnuaCTnandaCReport
T.R.A.C. Total
Development Park Nonmajor
&Operating Development Capital Indust.Devel. Stadium/ Landfill Special
Fund Fund Improvement Infrastructure Conv.Center Remediation Revenue
$ 213,900 $ - $ 1,052,139 $ - $ 218,313 $ 2,691,368
291,852
159,520 6,041,259
250,671 2,556,885
45,267
1,663 38,321 71,631 16,048 13,462 8,038 1,184,314
215,563 288,992 1,123,770 175,568 231,775 8,038 12,810,945
2,316,635
219,074
2,149,462
866,258
42,849
231,994 124,319 928,733
41,503
3,440,307
418,857
19,105 19,105
82,759 105,000 187,759
21,710 23,363 46,131
336,463 19,105 - - 252,682 - 10,676,673
(120,900) 269,887 1,123,770 175,568 (20,907) 8,038 2,134,272
9,260
45,000 1,783,503
(717,000) (3,179,791) (4,639,738)
45,000 (717,000) (3,179,791) - - (2,846,975)
(75,900) (447,113) (2,056,021) 175,568 (20,907) 8,038 (712,703)
141,763 1,941,795 4,196,314 709,596 33,874 392,759 11,558,386
$ 65,863 $ 1,494,682 $ 2,140,293 $ 885,164 $ 12,967 $ 400,797 $ 10,845,683
83
City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
Combining Balance Sheet
Nonmajor Debt Service Funds
December 31,2010
1999 Library/ 2002 Local hnprov. Total
Fire Station Ud Tax G.O. District Nonmajor
LID LID Bonds Refunding Bonds Guaranty Debt
Loans Bonds Fund Fund Fund Service
ASSETS
Cash and cash equivalents $ 9 $ 106,000 $ 98,414 $ 236,772 $ 880,871 $ 1,322,066
Receivables(net of allowances):
Taxes 7,401 18,910 26,311
Customers -
Grants -
Special assessments&loans 381,383 725,515 49,566 1,156,464
TOTAL ASSETS 381,392 831,515 105,815 255,682 930,437 2,504,841
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 15,000 15,000
Interfimd loans payable 375,285 375,285
Due to other governments -
Deferred revenue 334,528 652,963 7,401 18,909 5,353 1,019,154
Other -
Total liabilities 709,813 652,963 7,401 18,909 20,353 1,409,439
Fund balances:
Unreserved (328,421) 178,552 98,414 236,773 910,084 1,095,402
Total fund balances (328,421) 178,552 98,414 236,773 910,084 1,095,402
TOTAL LIABILITIES AND
FUND BALANCES $ 381,392 $ 831,515 $ 105,815 $ 255,682 $ 930,437 $ 2,504,841
84
City of Pasco, -Washington 2010 Comprehensive .annual T nandaC eport
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
Nonmajor Debt Service Funds
December 31,2010
1999 Library/ 2002 Local Improv. Total
Fire Station Unit,Tax G.O. District Norunajor
LID LID Bonds Refunding Bonds Guaranty Debt
REVENUES Loans Bonds Fund Fund Fund Service
Taxes $ - $ - $ 146,694 $ 360,324 $ - $ 507,018
Miscellaneous revenue 83,638 811,633 3,047 7,837 61,212 967,367
Total revenues 83,638 811,633 149,741 368,161 61,212 1,474,385
EXPENDITURES
Debt Service:
Principal 100,000 325,000 15,000 440,000
Interest 19,751 54,250 55,303 859 130,163
Total Expenditures 19,751 - 154,250 380,303 15,859 570,163
Excess of revenues
over(under)expenditures 63,887 811,633 (4,509) (12,142) 45,353 904,222
OTHER FINANCING(USES)
Transfers out (675,393) (190,113) (865,506)
Total other financing sources(uses) - (675,393) (190,113) (865,506)
Net change in fund balances 63,887 136,240 (4,509) (12,142) (144,760) 38,716
Fund balance-beginning (392,308) 42,312 102,923 248,915 1,054,844 1,056,686
Fund balance-ending $ (328,421) $ 178,552 $ 98,414 $ 236,773 $ 910,084 $ 1,095,402
85
City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
Combining Balance Sheet
Nonmajor Capital Projects Funds
December 31, 2010
Genearal LID Total
Capital Projects Capital Projects Capital Projects
Fund Fund Fund
ASSETS
Cash and cash equivalents $ 936,858 $ 142,675 $ 1,079,533
TOTAL ASSETS 936,858 142,675 1,079,533
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 105,156 141,010 246,166
Due to other governments 145 145
Total liabilities 105,156 141,155 246,311
Fund balances:
Unreserved 831,702 1,520 833,222
Total fund balances 831,702 1,520 833,222
TOTAL LIABILITIES AND
FUND BALANCES $ 936,858 $ 142,675 $ 1,079,533
86
City of Pasco, Washington 2010 Comprehensive .annual TinanciaC eport
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Capital Project Funds
December 31, 2010
Genearal LID Total
Capital Projects Capital Projects Capital Projects
REVENUES Fund Fund Fund
Total Revenues - - -
EXPENDITURES
Culture and recreation $ 33,480 $ - $ 33,480
Capital outlay:
Physical environment 867,745 867,745
Culture and recreation 2,614,325 2,614,325
Total expenditures 2,647,805 867,745 3,515,550
Excess of expenditures
over revenues (2,647,805) (867,745) (3,515,550)
OTHER FINANCING SOURCES(USES)
Miscellaneous 785,129 785,129
Transfers in 3,486,904 829,163 4,316,067
Transfers out (379,791) (379,791)
Total other financing sources(uses) 3,107,113 1,614,292 4,721,405
Net change in fiord balances 459,308 746,547 1,205,855
Fund balance-beginning 372,394 (745,027) (372,633)
Fund balance- ending $ 831,702 $ 1,520 $ 833,222
87
City of Pasco, Washington 2010 Comprehensive AnnuaCTnanciaCReport
Nonmajor Proprietary Funds
Enterprise Funds
Enterprise funds are used to account for the financing of goods or services for which a fee is charged
to external users for use of those goods and services. The City of Pasco does not have any nonmajor
enterprise funds.
Internal Service Funds
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the government and to other government units on a cost
reimbursement basis.
88
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Combining Statement of Net Assets
Nonmajor Internal Services Fund
For the Year Ended December 31,2010
Governmental Activities Business Type Activities
Equipment Equipment Medical Equipment Equipment Total
Rental Rental Insurance Central Rental Rental Internal
Operations Replacement Fund Stores Operations Replacement Service
ASSETS
Current assets:
Current cash&cash equivalents $ 286,785 $ 2,105,868 $ 1,650,005 $ 13,581 $ 164,772 $ 1,453,246 $ 5,674,257
Investments 1,000,000 1,000,000
Receivables
Interfimd bans-current portion 43,860 43,860
Total current assets 286,785 3,149,728 1,650,005 13,581 164,772 1,453,246 6,718,117
Noncurrent assets:
Interfimd loans 331,425 331,425
Construct work in process 175,133 175,133
Machinery and equipment 5,496,593 2,224,469 7,721,062
Accumulated depreciation (3,558,608) (1,169,574) (4,728,182)
Total noncurrent assets - 2,444,543 - - 1,054,895 3,499,438
Total assets 286,785 5,594,271 1,650,005 13,581 164,772 2,508,141 10,217,555
LIABILITIES
Current liabilities:
Accounts payable 18,637 8,605 551,005 533 4,274 583,054
Due to other governments 165 1,345 1,510
Total current liabilities 18,802 9,950 551,005 533 4,274 584,564
Noncurrent liabilities
Compensated absences 7,745 2,184 9,929
Total noncurrent liabilities 7,745 - - - 2,184 9,929
Total liabilities 26,547 9,950 551,005 533 6,458 - 594,493
NET ASSETS
Investment in capital assets net
ofrelated debt 2,113,118 1,054,895 3,168,013
Unrestricted 260,238 3,471,203 1,099,000 13,048 158,314 1,453,246 6,455,049
Total net assets $ 260,238 $ 5,584,321 $ 1,099,000 $ 13,048 $ 158,314 $ 2,508,141 $ 9,623,062
89
City of Pasco, 'Washington 2010 Comprehensive AnnuaCginanciaCReport
Combining Statement of Revenues,Expenditures,and Changes in Fund Net Assets
Nonmajor Internal Service Funds
For the Year Ended December 31,2010
Goverranental Activities Business-type Activities
Equipment Equipment Medical Equipment Equipment Total
Rental Rental Insurance Central Rental Rental Internal
Operations Replacement Fund Stores Operations Replacement Service
OPERATING REVENUES
Miscellaneous interfimd charges $ 814,365 $ 562,519 $ 3,530,746 $ 8,212 $ 296,454 $ 277,914 $ 5,490,210
Total operating revenues 814,365 562,519 3,530,746 8;212 296,454 277,914 5,490,210
OPERATING EXPENSES
Depreciation 395,787 220,443 616,230
Salaries&wages 188,429 36,420 224,849
Personnel benefits 30,015 7,019 37,034
Supplies 476,990 52,680 14,000 182,155 725,825
Services 52,755 3,491,972 14,791 3,559,518
Interfimd services 56,818 30,000 9,600 96,418
Total operating expenses 805,007 448,467 3,521,972 14,000 249,985 220,443 5,259,874
OPERATING INCOME(LOSS) 9,358 114,052 8,774 (5,788) 46,469 57,471 230,336
NONOPERATING REVENUES(EXPENSES)
Investment income 5,549 81,732 34,112 254 3,599 29,031 154,277
Loss on disposal ofcapital assets (54,796) (90,522) (145,318)
Total nonoperatmgrevenues 5,549 26,936 34,112 254 3,599 (61,491) 8,959
Net income(loss) 14,907 140,988 42,886 (5,534) 50,068 (4,020) 239,295
Changes in net assets 14,907 140,988 42,886 (5,534) 50,068 (4,020) 239,295
Net assets-beginning 245,331 5,443,333 1,056,114 18,582 108,246 2,512,161 9,383,767
Net assets-ending $ 260,238 $ 5,584,321 $ 1,099,000 $ 13,048 $ 158,314 $ 2,508,141 $ 9,623,062
90
City of Pasco, 'Washington 2010 Comprehensive AnnuaCfinanciaCReport
Combining Statement of Cash Flows
Nonmajor Internal Service Funds
For the Year Ended December 31,2010
Governmental Activities Business-type Activities
Equipment Equipment Medical Equipment Equipment Total
Rental Rental Insurance Central Rental Rental Internal
Operations Replacement Fund Stores Operations Replacement Service
CASH FLOW FROM OPERATING ACTIVITIES:
Cash from customers $ 814,365 $ 562,519 $ 3,530,746 $ 8,212 $ 296,454 $ 277,914 $ 5,490,210
Payments to employees (235,584) - - - (49,138) - (284,722)
Payments to suppliers (582,689) (44,461) (3,520,967) (13,992) (202,949) (4,365,058)
Net cash provided by operating activities (3,908) 518,058 9,779 (5,780) 44,367 277,914 840,430
CASH FLOW FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition ofcapdalassets (460,013) (312,162) (772,175)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment sales and income 256,484 1,595,655 1,242,252 8,485 4,615 1,286,164 4,393,655
Interfimd loans 163,620 163,620
Net cash provided from investing activi ties 256,484 1,759,275 1,242,252 8,485 4,615 1,286,164 4,557,275
Net increase in cash and cash equivalents 252,576 1,817,320 1,252,031 2,705 48,982 1,251,916 4,625,530
Beginning cash and cash equivalents 34,209 288,548 397,974 10,876 115,790 201,330 1,048,727
Ending cash and cash equivalents S 286,785 S 2,105,868 $ 1,650,005 S 13,581 $ 164,772 $ 1,453,246 $ 5,674,257
CASH PROVIDED BY OPERATING
ACTIVITIES:
Net operating income $ 9,358 $ 114,052 $ 8,774 $ (5,788) $ 46,469 $ 57,471 $ 230,336
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
Depreciation - 395,787 - - - 220,443 616,230
Increase in accounts payable 3,874 8,219 1,005 8 3,597 - 16,703
Decrease in compensated absences (17,140) (5,699) (22,839)
Net cash provided by operating activities $ (3,908) $ 518,058 $ 9,779 $ (5,780) $ 44,367 $ 277,914 $ 840,430
91
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Trust and Agency Funds
Pension and Other Postemployment Benefit Trust Funds
Pension and other post-employment benefit trust funds are used to report resources that are required to be
held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution
plans, other postemployment benefit plans or other employee benefit plans.
Agency Funds
Agency funds are used to report resources held by the reporting government in a purely custodial capacity.
Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary
resources to individuals,private organizations, or other governments.
92
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialPeport
Combining Statement of Net Assets
Fiduciary Funds
December 31, 2010
Trust Funds
Other Total
Postemployment Fire Pension and
Benefit Pension Other Postemployment
Trust fund Trust fund Benefits funds
ASSETS
Cash&cash equivalents $ 539,524 $ 104,034 $ 643,558
Receivables:
Interest receivable 7,695 7,695
Investments at fair market value 1,453,007 1,636,952 3,089,959
Total assets 1,992,531 1,748,681 3,741,212
LIABILITIES
Total liabilities - - -
NET ASSETS
Held in trust for pension benefits
and other purposes $ 1,992,531 $ 1,748,681 $ 3,741,212
93
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialPeport
Combining Statement of Net Assets
Fiduciary Funds (continued)
December 31,2010
Agency Funds
Pasco
Public Animal Senior
Flexible Facility Control Center Payroll Total
Spending District Authority Association Clearing Agency
ASSETS
Cash&cash equivalents $ 7,065 $ 97,211 $ 4 $ 1,603 $ 197,592 $ 303,475
Receivables:
Interest receivable -
Investments at fair market value
Total assets 7,065 97,211 4 1,603 197,592 303,475
LIABILITIES
Total liabilities $ 7,065 $ 97,211 $ 4 $ 1,603 $ 197,592 $ 303,475
94
City of Pasco, 'Washington 2010 Comprehensive .annual Tinancial Report
Combining Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
December 31, 2010
Other Total
Postemployment Fire Pension and
Benefit Pension Other Postemployment
Trust fund Trust fund Benefits funds
ADDITIONS
Taxes $ - $ 41,516 $ 41,516
Investrnent earnings
Interest 25,417 25,417 50,834
Dividends 29,393 29,393 58,786
Net increase in market value
of investments 114,970 114,970 229,940
Total additions 169,780 211,296.00 381,076
DEDUCTIONS
Pension benefits 95,543 95,543
Medical premiums 102,531 102,531
Administrative expenses 7,200 7,200
Total deductions 102,531 102,743 205,274
Change in net assets 67,249 108,553 175,802
Net assets-beginning 1,925,282 1,640,128 3,565,410
Net assets- ending $ 1,992,531 $ 1,748,681 $ 3,741,212
95
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Combining Statement of Changes in Assests and Liabilities
Agency Funds
For the Year Ended December 31,2010
Flexible Spending Accounts Pasco Public Facility District
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
ASSETS
Cash and cash equivalents $ 6,455 $ 131,192 $ 130,582 $ 7,065 $ 106,621 $ 422,568 $ 431,978 $ 97,211
Total assets 6,455 131,192 130,582 7,065 106,621 422,568 431,978 97,211
LIABILITIES
Due to other governments 6,455 131,192 130,582 7,065 106,621 422,568 431,978 97,211
Total liabilities $ 6,455 $ 131,192 S 130,582 S 7,065 $ 106,621 S 422,568 $ 431,978 $ 97,211
96
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Animal Control Authority Senior Center Association
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
$ 2,106 $ 643,635 $ 645,737 $ 4 $ $ 1,603 $ $ 1,603
2,106 643,635 645,737 4 1,603 1,603
2,106 643,635 645,737 4 1,603 1,603
$ 2,106 $ 643,635 $ 645,737 $ 4 $ $ 1,603 $ $ 1,603
97
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Combining Statement of Changes in Assests and Liabilities
Agency Funds(continued)
For the year ended December 31,2010
Payroll Clearing Total Agency Funds
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
ASSETS
Cash and cash equivalents S (4,520) $ 25,527,818 $ 25,325,706 $ 197,592 $ 110,662 $ 26,726,816 $ 26,534,003 $ 303,475
Total assets (4,520) 25,527,818 25,325,706 197,592 110,662 26,726,816 26,534,003 303,475
LIABILITIES
Due to other governments (4,520) 25,527,818 25,325,706 197,592 110,662 26,726,816 26,534,003 303,475
Total liabilities $ (4,520) $ 25,527,818 $ 25,325,706 $ 197,592 $ 110,662 $ 26,726,816 $ 26,534,003 $ 303,475
98
City of Pasco, 'Washington 2010 Comprehensive .annual Ttinancial Report
STATISTICAL SECTION
This part of the City of Pasco's comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the government's overall financial health.
CONTENTS Page
Financial Trends 100
These schedules contain trend information to help the reader understand how
the government's financial performance and well-being have changed over time.
Revenue Capacity 106
These schedules contain information to help the reader assess the government's
most significant revenue sources.
Debt Capacity 111
These schedules present information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability to
issue additional debt in the future.
Demographic and Economic Information 115
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take
place.
Operating Information 117
These schedules contain service data to help the reader understand how the
information in the government's financial report relates to services the government
provides and the activities it performs.
Sources:Unless otherwise noted,the information in these schedules is derived from the comprehensive annual financial
reports for the relevant year.
99
City of Pasco, 'Washington 2010 Comprehensive AnnuaCTinancialR.eport
Net Assets by Component
Last Seven Fiscal Years
(accrual basis of accounting)
(amounts expressedin thousands)
Fis cal Year
2004 2005 2006 2007 2008 2009 2010
Governmental activities
Invested in capital assets,net of related debt $38,549 $47,804 $59,050 $74,058 $85,294 $97,602 $122,343
Restricted 4,618 5,734 5,738 3,941 4,005 3,551 383
Unrestricted 16,081 15,366 15,944 22,710 23,750 24,111 28,241
Total governmental activities net assets 59,248 68,904 80,732 100,709 113,049 125,264 150,967
Business-type activities
Invested in capital assets,net of related debt 59,694 69,646 93,667 97,635 109,736 1,136,995 124,771
Restricted 746 1,321 1,798 842 747 777 0
Unrestricted 14,174 23,041 6,252 12,611 5,712 12,618 11,400
Total business-type activities net assets 74,614 94,008 101,717 111,088 116,195 1,150,390 136,171
Primary government
Invested in capital assets,net of related debt 98,243 117,450 152,717 171,694 195,030 211,596 247,114
Restricted 5,364 7,055 7,536 4,783 4,752 4,328 383
Unrestricted 30,255 38,407 22,196 35,321 29,462 36,729 39,641
Total primary government net assets $133,862 $162,912 $182,449 $211,798 $229,244 $252,653 $287,138
100
City of Pasco, 'Washington 2010 Comprehensive AnnuaCTinancialR.eport
Changes in Net Assets
Last Sewn Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Ended December 31
2004 2005 2006 2007 2008 2009 2010
E2jVenses
Governmental activities:
General government $7,374 $8,116 $8,889 $9,649 $10,410 $12,059 $6,921
Public safety 13,056 14,004 16,592 17,214 18,296 18,743 19,419
Physical environment 1,548 1,690 2,319 2,137 3,532 3,050 1,900
Transportation 3,799 5,944 1,299 4,242 4,331 5,137 7,831
Health and human services 46 45 44 40 57 59 1,652
Economic environment 819 934 1,647 1,117 1,199 1,385 797
Culture and recreation 5,408 4,893 4,872 5,713 5,983 6,212 4,724
Interest on long term debt 774 714 682 640 587 413 512
Total governmental activities expenses 32,824 36,340 36,344 40,752 44,395 47,058 43,756
Business-type activities
Water 4,289 3,950 5,051 5,180 5,990 6,029 6,538
Sewer 5,812 5,878 5,724 6,275 6,316 6,826 6,944
Water process reuse 1,417 1,466 1,558 1,503 1,569 1,558 1,444
Stormwater 316 377 518 595 607 735 791
Irrigation 356 544 748 936 1,015 1,009 1,045
Total business-type activities expenses 12,190 12,215 13,599 14,489 15,497 16,157 16,762
Total primary government expenses 20,634 24,125 22,745 26,263 28,898 30,901 26,994
Pro gram revenues
Governmental Activities:
Charges for Services 9,462 10,094 11,362 12,640 12,185 15,804 10,293
Operating grants and contributions 846 1,199 1,045 1,074 376 504 1,448
Capital grants and contributions 6,863 6,547 9,244 3,438 14,753 13,283 25,488
Total governmental activities program revenues 17,171 17,840 21,651 17,152 27,314 29,591 37,229
Business-type activities
Charges for services 12,153 13,112 14,186 14,307 17,232 18,319 18,148
Operating grants and contributions 0 0 0 0 0 0 0
Capital grants and contributions 9,911 14,203 3,625 6,377 3,254 3,061 4,654
Total bus ines s-type activities program revenues 22,064 27,315 17,811 20,684 20,486 21,380 22,802
Total primary government program revenues $39,235 $45,155 $39,462 $37,836 $47,800 $50,971 $60,031
101
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Changes in Net Assets
Last Seven Fiscal Years(continued)
(accrual basis of accounting)
(amounts expressed in thousands)
Fis cal Year
2004 2005 2006 2007 2008 2009 2010
Net(expenses)/revenues
Governmental activities ($15,653) ($18,500) ($14,693) ($23,599) ($17,078) ($17,467) ($6,527)
Business-type activities 9,874 15,100 4,212 6,195 4,504 5,223 6,040
(5,779) (3,400) (10,481) (17,404) (12,574) (12,244) (487)
Total primary government net(expense)/revenues
General revenues andother changes in net assets
Governmental Activities:
Taxes
Property taxes 4,699 4,883 5,303 5,774 6,055 6,276 6,080
Sales and use taxes 7,412 7,857 8,226 8,646 8,843 8,000 8,245
Occupational utility taxes 6,456 7,100 7,561 7,842 8,689 8,924 8,917
Other taxes 2,838 3,396 3,305 3,729 4,655 4,686 1,738
Intergovernmental* 1,663
Investment and miscellaneous 2,630 3,365 2,412 2,892 987 852 1,147
Transfers (2,199) 584 113 846 613 566 149
Total governmental activities 21,836 26,017 26,920 29,729 29,842 29,304 27,641
Business-type activities
Investment and miscellaneous 4,105 4,120 3,758 4,184 425 399 1,062
Transfers 1,378 58 183 866 613 566 149
Total business-type activities 5,483 4,062 3,575 3,318 (188) (167) 1,211
Total primary government 27,319 30,079 30,495 33,047 29,654 29,137 28,852
Changes in net assets**
Governmental activities 6,183 7,517 12,227 6,130 12,764 11,837 21,114
Business-type activities 15,357 19,162 7,787 9,513 4,316 5,056 7,251
Total primary government $21,540 $26,679 $20,014 $15,643 $17,080 $16,893 $28,365
*lnlcuded with"Other taxes"until 2010.
**Beginning Net Assets were restated based on priorperiod adjustments recorded in 2010.
102
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressedin thousands)
Fiscal Year
Ended Property Sales and Excise and Other
December 31 Taxes Use Taxes B&O Taxes Taxes Total Taxes
2001 $3,113 $5,626 $3,808 $534 $13,081
2002 3,727 6,892 4,430 901 15,950
2003 4,039 6,348 5,844 2,761 18,992
2004 4,699 7,412 6,456 2,677 21,244
2005 4,883 7,857 7,100 3,223 23,063
2006 5,303 8,226 7,561 3,305 24,395
2007 5,774 8,646 7,842 3,729 25,991
2008 6,056 8,843 8,689 4,655 28,243
2009 6,276 8,000 8,924 4,686 27,886
2010 6,080 8,245 8,917 1,739 24,981
103
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialPeport
FundBalance of Governmental Funds
Last Seven Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2004 2005 2006 2007 2008 2009 2010
General fund
Reserved $ 70 $ 59 $ 1,891 $ 1,517 $ 692 $ 1,898 $ -
Unreserved 7,589 9,109 6,861 9,088 10,270 7,917 9,414
Total general fund 7,659 9,168 8,752 10,605 10,962 9,815 9,414
All other governmental funds
Reserved 4,616 5,728 5,729 3,910 3,890 2,798 383
Unreserved,reported in:
Special revenue funds 7,142 4,912 6,115 8,260 9,872 9,010 10,846
Debt service funds 60 281 671 773 921 1,307 1,095
Capital project funds (206) 440 1,158 224 1,750 655 833
Total all other governmental funds $11,612 $10,481 $11,357 $12,719 $12,933 $12,460 $13,157
104
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Changes in Fund Balances of Governmental lends
Last Sewn Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2004 2005 2006 2007 2008 2009 2010
Revenue
Taxes $20,491 $22,196 $23,362 $24,516 $25,716 $25,339 $24,960
Licenses and permits 2,337 2,338 2,116 1,924 1,616 1,860 1,966
Intergovernmental revenue 2,628 3,494 10,802 4,719 5,293 4,041 7,929
Charges for services 3,887 4,226 4,388 4,738 4,771 5,285 5,502
Fines and forfeitures 740 746 829 1,054 1,017 1,063 944
Investment and miscellaneous 2,453 3,075 2,803 2,734 2,310 2,963 2,930
Total revenues 32,536 36,075 44,300 39,685 40,723 40,551 44,231
Expenditures
Current:
General government 4,337 4,817 5,026 5,001 5,341 5,847 6,547
Public safety 12,734 13,588 15,593 16,820 17,711 18,418 18,820
Physical environment 1,246 1,444 1,609 1,825 2,078 2,066 1,855
Transportation 1,076 1,104 1,133 1,537 1,536 1,566 2,149
Health and human services 46 45 44 40 57 59 1,313
Economic environment 461 648 681 745 671 944 54
Culture and recreation 3,434 3,464 3,827 4,117 4,279 4,670 4,757
Capital outlay 5,878 8,222 14,188 5,737 7,345 7,718 7,589
Debt service:
Principal 1,116 1,106 1,120 1,162 1,108 1,249 1,178
Interest 774 714 682 640 587 413 512
Total expenditures 31,102 35,152 43,903 37,624 40,713 42,950 44,774
Excess of revenues
over(under)expenditures 1,434 923 397 2,061 10 (2,399) (543)
Other financing sources(uses)
Disposition of capital assets 367 41 157 7
Proceeds of general debt 219 795
Insurance recoveries an other 18 30 1 251 (1)
Operating transfers in 4,260 5,322 5,864 4,984 5,094 5,432 6,559
Operating transfers out (4,628) (6,068) (5,710) (4,247) (4,542) (4,527) (6,708
Total other financing sources(uses) 236 (675) 155 894 559 1,156 645
Net change in fund balances $1,670 $248 $552 $2,955 $569 ($1,243) $102
Debt services as percentage
of noncapital expenditures 8.10% 7.25% 6.46% 5.99% 5.35% 4.95% 4.76%
105
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialPeport
Assessed Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Real Property
Total Taxable Total
Residential Commercial Other Assessed Direct Tax
Fiscalyear Property Property Property Valuation Rate
2001 $876,656 $105,259 $49,984 $1,031,899 $3.64
2002 968,149 109,023 49,984 1,127,156 3.66
2003 1,185,854 64,831 53,395 1,304,080 3.20
2004 1,608,204 116,704 54,917 1,779,825 2.81
2005 1,838,148 81,763 52,699 1,972,610 2.81
2006 1,685,326 85,760 54,277 1,825,363 2.74
2007 2,309,544 113,973 59,650 2,483,167 2.54
2008 1,942,831 473,136 445,373 2,861,340 2.49
2009 1,525,399 869,876 539,517 2,934,792 2.23
2010 2,151,661 577,476 172,776 2,901,913 2.22
Source: Franklin County Assessor
licise Taxes by Type
Last Ten Fiscal Years
(in thousands of dollars)
(Goss Revenues times 8 1/2% Tax Rate)
Fiscal year ended
December 31 Admissions Cable TV Solid Waste Water Sewer Gas Telephone Electricity Total
2001 n/a n/a n/a n/a n/a n/a n/a n/a n/a
2002* 50 284 326 375 529 346 1,045 2,129 5,084
2003 50 294 347 464 600 370 1,321 2,449 5,895
2004 57 341 388 488 688 472 1,493 2,586 6,513
2005 49 295 404 561 778 614 1,459 2,990 7,150
2006 38 300 387 547 793 786 1,607 3,140 7,598
2007 78 288 468 563 742 853 1,723 3,206 7,921
2008 115 356 482 595 724 799 2,519 3,213 8,803
2009 136 369 491 646 820 962 2,142 3,382 8,948
2010 149 383 515 709 821 925 2,059 3,356 8,917
*Oldest comparative information that is available
106
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Property Tax Rates
Direct and Overlapping 1 Governments
Last Ten Fiscal Years
Overlapping Rates
City of Pasco County School District
Total direct
Debt Total Debt Total Debt Total and
Operating service city Operating service county Operating service school Special overlapping
Fiscalyear millage millage millage n0age millage millage millage millage millage districts rates
2001 3.043 0.593 3.636 2.060 0.163 2.223 4.017 2.416 6.433 0.450 12.742
2002 3.063 0.599 3.662 2.060 0.156 2.216 3.938 2.300 6.238 0.448 12.564
2003 2.684 0.514 3.198 2.059 0.473 2.532 4.005 2.479 6.484 0.445 12.659
2004 2.662 0.146 2.808 1.904 0.496 2.400 3.826 2.799 6.625 0.436 12.269
2005 2.416 0.389 2.805 1.792 0.383 2.175 3.941 2.628 6.569 0.410 11.959
2006 2.391 0.350 2.741 1.749 0.348 2.097 3.768 2.747 6.515 0.399 11.752
2007 2.249 0.293 2.542 1.699 0.320 2.019 3.929 2.992 6.921 0.388 11.870
2008 2.221 0.268 2.489 1.673 0.281 1.954 3.834 3.083 6.917 0.383 11.743
2009 2.004 0.230 2.234 1.459 0.261 1.720 4.170 3.081 7.251 0.347 11.552
2010 1.999 0.225 2.224 1.478 0.238 1.716 4.155 2.395 6.550 0.338 10.828
Source: Franklin County Assessors(Property taxbooklet)
1 Overlapping rates are those of local and county governments that apply to property owners within the Narm of Government. Not all overlapping
rates apply to all City of Pasco property owners whose property is located within the geographic boundaries of the special district.
107
City of Pasco, 'Washington 2010 Comprehensive AnnuaCTinancialR.eport
Principal Property Taxpayers
December 31,2010
(amounts expressed in thousands)
2010 2008*
Taxable Percentage Taxable Percentage
assessed oftotal assessed of total
Taxpayer value Rank taxable value Rank taxable
Syngenta Seed hic $36,987 1 1.20% $0 0.00%
Pasco Processing LLC 27,530 2 0.900/0 31,316 1 1.09%
Bybee Foods LLC 25,240 3 0.800/0
Twin City Foods,Inc. 19,049 4 0.60% 22,098 2 0.77%
The Crossing at Chapel Hill 16,085 5 0.50% 16,085 4 0.56%
Broadmoor LLC 15,382 6 0.50% 16,432 3 0.57%
Reser's Fine Foods,Inc 15,130 7 0.50% 14,400 5 0.50%
BNSF Railway Co. 14,513 8 0.50% 12,255 9 0.43%
Wal-Mart,hic 13,745 9 0.40% 13,745 6 0.48%
Conagra Foods Lamb-Weston,Inc. 12,268 10 0.40% 12,632 8 0.44%
Skywest Airlines,Inc - 13,241 7 0.46%
Old Standard Life Insurance - 11,234 10 0.39%
$195,929 6.30% $163,438 5.69%
Source: Franklin County Assessor's Office
* Oldest comparative infon-nation that is available.
108
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
City of Pasco
Principal ExciseTaxpayers
Current Year and Six Years Prior
(amounts expressed in thousands)
2010 2004*
Percentage of Percentage
Tax Total Tax Tax of Total Tax
Taxpayer Revenue Rank Revenue Revenue Rank Revenue
Company A $3,356 1 37.64% $2,586 1 39.71%
Company B 741 2 8.31% 407 3 6.25%
Company C 698 3 7.83% 0.000/0
Company D 515 4 5.78% 388 4 5.96%
Company E 383 5 4.30% 341 5 5.24%
Company F 377 6 4.23% 0.000/0
Company G 368 7 4.13% 477 2 7.32%
Company H 165 8 1.85% 0.000/0
Company I 147 9 1.65% 139 7 2.13%
Company J 136 10 1.53% 109 8 1.67%
Company K - 302 6 4.64%
Company L 73 9 1.12%
Company M 71 10 1.09%
$6,886 77.25% $4,893 75.13%
Note:Per state privacy laws the names of the companies are confidential and have been indicated instead by letter.The
above information is provided to show concentration risk by company.
*This is the oldest comparative information available.
Top Ten Industries that Generate Sales Tax
Current Year and Four Years Ago
2010 2006
Sales % of Sales % of
Tax Total Tax Total
Industries Paid Rank Sales Tax Paid Rank Sales Tax
Motor vehicle and parts dealers $808,346 1 16.64% $1,553,185 1 20.95%
Wholesale trade,durable goods 435,296 2 8.96% 776,944 2 10.48%
General merchandise stores 356,946 3 7.35% 408,218 5 5.51%
Food services,drinking places 299,447 4 6.16% 338,591 8 4.57%
Specialty trade contractors 296,942 5 6.11% 628,960 3 8.48%
Repair and maintenance 272,839 6 5.62% 0.00%
Construction of buildings 242,164 7 4.99% 421,800 4 5.69%
Building material and garden 203,033 8 4.18% 249,406 9 3.36%
Rental and leasing services 172,724 9 3.56% 357,386 7 4.82%
Telecomrrmnications 158,820 10 3.27% 200,425 10 2.70%
Miscellaneous store retailers 381,601 6 5.15%
Source:Washington State Department of Revenue tax tools
109
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressedin thousands)
Collected within the
fiscal year of the levy Total collections to date
Collections
Total tax in
Fiscal Year Ended levy for Percentage Subsequent Percentage
December 31 fiscal year Amount of levy years 1 Amount of levy
2001 $3,644 $3,472 95.3% $0 $3,472 95.3%
2002 3,991 3,839 96.2% 0 3,842 96.3%
2003 4,028 3,869 96.1% 0 3,920 97.3%
2004 4,392 4,210 95.9% 0 4,297 97.8%
2005 4,859 4,674 96.2% 0 4,860 100.0%
2006 5,314 5,114 96.2% 2 5,307 99.9%
2007 5,763 5,600 97.2% 35 5,759 99.9%
2008 6,061 5,887 97.1% 41 6,015 99.2%
2009 5,738 5,579 97.2% 92 5,671 98.8%
2010 6,400 6,211 97.0% 6,211 97.0%
Source: Franklin County Treasurer's Office Tax Rolls
County provides four prior years and combines five years or more together.
110
City of Pasco, Washington 2010 Comprehensive AnnualFinancialR.eport
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands,except per capita amount)
Governmental Activities Business-type Activities
General Water/ Other Total Percentage
Obligation Special Sewer Loans Primary of Personal Per
Year Bonds Assessments Bonds Payable Government Income Capita 1
2003 $15,727 $2,080 $17,614 $24,328 $59,749 7.6% $1,590
2004 14,500 1,501 15,940 23,694 55,635 6.5% 1,362
2005 13,650 2,329 19,300 22,340 57,619 6.2% 1,304
2006 12,955 3,288 18,045 20,950 55,238 5.4% 1,160
2007 11,850 2,853 17,620 19,523 51,846 5.0% 1,033
2008 10,915 120 16,245 18,056 45,336 3.8% 867
2009 9,945 120 16,549 24,710 51,324 Not Available 942
2010 8,940 785 29,125 15,061 53,911 Not Available 958
Note:Details regarding the City's outstanding debt can be found in the notes and schedules to the financial statements.
1 See page 115 for population and personal income data. This ratio was calculated using population for the applicable fiscal year.
111
City of Pasco, Washington 2010 Comprehensive AnnualFinancialPeport
Ratios of General BondedDebt Outstanding
and Bonded per Capita
Last Ten Fiscal Years
(amounts expressedin thousands,except per capita amount)
Percentage of
General Less:Amounts estimated actual
obligations available in debt taxable value 1 Per
Year bonds service fund Total of property capita
2001 $16,894 1,534 $15,360 1.49% $465
2002 19,147 1,659 17,488 1.55% 505
2003 15,727 2,732 12,995 1.00% 346
2004 14,500 2,865 11,635 0.65% 285
2005 13,650 2,973 10,677 0.54% 242
2006 12,955 3,105 9,850 0.54% 207
2007 11,850 2,824 9,026 0.36% 180
2008 10,915 2,787 8,128 0.28% 155
2009 9,945 1,231 8,714 0.30% 160
2010 8,940 1,322 7,618 0.26% 135
Note:Details regarding the City's outstanding debt can be found in the notes and schedules statements.
to the financial statements.
1 See the schedule of assessed value taxable property on page 106 for property value data.
2 Population data can be found in the schedule of demographic and economic statistics on page 115.
112
City of Pasco, 'Washington 2010 Comprehensive AnnuaCTinancialR.eport
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Debt limit $23,792 $28,197 $32,602 $44,496 $49,691 $57,846 $62,079 $72,012 $73,370 $72,923
Total net debt applicable to limit 16,608 17,171 17,734 11,894 16,204 15,341 10,470 13,252 12,501 11,218
Legal debt margin $7,184 $11,026 $14,868 $32,602 $33,487 $42,505 $51,609 $58,760 $60,869 $61,705
Total net debt applicable to the limit as a 69.80% 60.90% 54.40% 26.73% 32.61% 26.52% 16.87% 18.40% 17.04% 15.38%
percentage of debt limit
Legal debt margin calculation for fiscal year 2010
Assessed value $2,916,936
GENERAL PURPPOSES
Lir it of 2.5%of As s es s ed Value $72,923
Councilmanic:
Capacity(1.5%of As s es s ed Value) 43,754
Less:
GO Bonds Outstanding (6,990)
State LOCAL Loans (272)
TRAC Obligation 368
Airport Fire Station (73)
OPBB (583)
Compensated Absences (1,718)
Total debt (9,268)
Remaining capacity without a vote 34,486
Voter Approwed:
Capacity(1.0%ofAssessed Value) 29,169
Less:
Sources: GO Bonds Outstanding (1,950)
Franklin County Assessors Office-(Steve Marks)* Remaining capacity with a vote 27,219
Debt Schedule Statement
Note:The total indebtedness for general purposes with or without a vote cannot exceed 2.5%of the value of taxable property.The general purposes indebtedness includes debt for capital
leases without a vote.The legal limit for capital leases debt(RCW 35.42.200)is included in the 2.5 percent and does not constitute extra allowable debt.
The 1.5 percent is the maxiumliarit for gemeral purposes without a vote(councilmanic debt).A council may choose to allocate any portion of this debt capacity to the"voted" category.
If done so,this 1.5 percent of the indebtedness available without vote is to be proportionately reduced by the excess'voted"debt over 1 percent.
113
City of Pasco, 'Washington 2010 Comprehensive AnnuaCTinancialR.eport
Pledged-Revenue Coverage
Last Ten Fiscal Years
(amounts express edin thousands)
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
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
2010 17,028,720 7,972,967 9,055,753 1,455,000 1,107,082 2,562,082 3.53
Source:
Per financial statements and debt service schedules.
114
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Demographic and Economic Statistics
Last Ten Fiscal Years
Average Median
Fiscal Per capita earnings per household School Unemployment
year Population 1 income 2 job 2 income 6 Median age 3 enrollment 4 rate 5
2001 33,010 $20,625 $30,598 $49,588 28.00 9,227 8.0%
2002 34,630 20,760 31,949 49,744 28.19 9,785 8.5%
2003 37,580 21,028 33,865 50,107 28.47 10,353 8.8%
2004 40,840 20,971 35,350 49,125 27.40 11,038 7.5%
2005 44,190 21,048 36,134 50,271 27.00 11,828 7.0%
2006 47,610 21,317 36,895 56,538 27.00 12,516 7.0%
2007 50,210 20,573 Not Available 52,136 28.66 12,610 6.4%
2008 52,290 22,955 34,379 47,734 28.20 13,701 10.3%
2009 54,490 Not Available Not Available 48,217 27.40 14,437 6.4%
2010 56,300 Not Available Not Available 46,426 Not Available 15,127 5.9%
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 W ashington Employment Security Department (Franklin County Annual Average)
6 Office of Financial Management Washington State Median Household Income Estimates by County
115
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Principal Employers
Current Year and Ten Years Prior
2010 2000
Employer Employees Rank Employees Rank
Battelle/PNNL 4,723 1 Not available
CH2M Hill 3,081 2
ConAgra(Lamb Weston) 2,735 3
Bechtel National 2,300 4
Pasco School District 2,065 5
Kadlec Medical Center 2,016 6
Washington River Protection Solutio 1,482 7
Kennewick School District 1,473 8
Richland School District 1,400 9
Washington Closure Hanford 1,370 10
Source:TRIDEC
Prior years'information is not available.
This information includes employee's for Tri Cities.
City of Pasco information not available.
116
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Full-Time Equivalent City Government Employees by Function
Last Nine Fiscal Years
Fiscal year
Function 2002 2003 2004 2005 2006 2007 2008 2009 2010
General government 43 44 42 47 47 49 51 52 39
Public safety
Muni Court 12 12 13 13 13 14 14 14 15
Police
Officers 48 51 55 62 62 64 66 69 67
Civilians 10 10 10 11 12 11 11 11 11
Fire
Firefighters and officers 31 31 31 34 34 34 34 34 34
Ambulance 12 15 15 15 15 15 15 15 16
Physical enviroment
Utilities
Water 16 17 17 17 18 18 20 22 22
Sewer 13 14 14 14 14 15 17 18 18
Water process reuse 2 3 3 3 3 3 3 3 3
Storm water 3 3 4 4 4 4 4 4 4
Irrigation 1 1 2 2 2 2 2 2 2
Transportation
Highways and streets
Engineering 13 12 12 13 15 14 14 13 13
Maintenance 6 6 6 7 7 7 7 7 7
Health and human services 2 2 2 2 2 2 2
Economic enviroment 11 10 11 12 12 15 14 17 15
Culture and recreation 11 11 14 15 15 16 17 16 16
Total 232 240 251 271 275 283 291 299 284
Source:Annual Operating Budget
117
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
Operating Indicators by Function
Last Ten Years
Fiscal year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Function
Public Safety
Police
Violent crime 124 149 105 142 98 160 150 166 217 183
Nonviolent crime 1,470 1,545 1,519 1,712 2,021 1,795 1,817 1,688 1,525 1,475
Calls for service 29,945 30,248 31,740 34,556 45,835 46,095 49,191 54,061 55,672 52,116
Victims per 1000 population 46 49 43 45 47 41 39 35 32 29
Fire&Emergency Medical Service
Number of emergency reponse-Fire na na na na 416 429 428 233 238 215
Number of emergency repons e-EMS na na na na 2,462 2,485 2,586 3,316 3,005 3,016
10%total response time-Fire
90%total response time-EMS
Corruununity Development
Number of new SF units 380 738 871 1,031 1,008 729 518 398 467 530
Number of new MF units 0 2 204 719 198 0 3 0 0 127
Commercial permits 306 300 290 399 357 377 310 274 351 279
Construction value(millions) 23.6 13.0 38.5 44.4 41.1 62.4 81.6 40.0 60.0 38.6
Residential permits 1,269 1,882 1,984 2,075 2,192 1,869 1,576 1,403 1,499 1,908
Construction value(millions) 52.2 100.4 121.9 151.3 170.8 139.8 106.2 82.9 102.1 119.2
Utilities
Water
Bills processed 114,377 122,924 134,693 144,627 151,515 165,165 177,195 189,061 194,614 202,136
New connections 521 989 1,070 1,331 1,246 838 734 543 631 666
Water meters replaced 816 294 26 43 104 88 75 78 73 1,842
Source:Various government departments.
118
City of Pasco, -Washington 2010 Comprehensive .Annual Financial Report
"Action is the real measure of intelligence."
Napolean Hill
119
City of Pasco, -Washington 2010 Comprehensive AnnuaC Financial Report
STATE REQUIRED SCHEDULES
120
City of Pasco. Washington 2010 Comprehensive AnnuaC EinanciaC Report
MCAGNO.0292
SCHEDULE 9-LONG TERM DEBT
For the Year Ended December31,2010
BARS code for Beginning BARS code for Ending
Outstandine IDNo. Description Balance Additions Reductions Redernotionofdebt Balance
DEBT/LIABILITIES RELATED TO GOVERNMENTAL FUNDS
Councilmanic GO Bonds
850.225152 251.11 2001 LTGO 99&Refund 1994 5,015,000 (360,000) 010.905.59151.571050 4,655,000
850.225153 251.16 2002 LTGO New&Refund 1995 1,885,000 (115,000) 010.905.59151.571060 1,770,000
850.225153 251.16 2002 LTGO New&Refund 1995 670,000 (105,000) 195.960.59151.571012 565,000
Total Councilmanic 6,990,000
Voted-GO Bonds
850.225151 251.14 1999 UTGO Library&Fire Station 1,000,000 (100,000) 272.980.59151.571020 900,000
850.225154 251.12 2002 HUGO Ref Civic Ctr City Hall 1,375,000 (325,000) 273.980.59151.571020 1,050,000
Total Voted-Capital Facilities 1,950,000
Other Debt
850.226362 263.81 2002 State LOCAL-Animal Control FacihIty 159,411 (15,776) 010.905.59151.575002 143,635
850.226364 263.81 2009 State LOCAL-Police Vehicle Computes 176,110 (48,174) 010.905.59151.575004 127,936
850.226384 263.81 2006 Port Airport Fire Building 84,262 (11,417) 010.905.59151.579092 72,845
850.226383 263.81 1998TRACLoan 451,035 (82,759) 191.961.59151.579090 368,276
Total Other Debt 712,692
'850.223150 Compensated Absences(259.11) 1,710,557 1,398,263 (1,390,880) Total Comp Absences 1,717,940
'850.226390 OPEB RelatedUabilitles(263.93) - 582,589 - Total OPFB 582,589
See Special Assessment Below 785,129
TOTAL GOVERNMENTAL ACTIVITIES PER FOOTNOTE 12,738,350
DEBT/LIABILITIES RELATED TO GOVERNMENTAL FUNDS
Rewnue Bonds-Nonvoted
410.225242 252.11 1998A Rev Bond PWRF 1,315,000 (1,315,000) 410.775.58241.572010 -
410.225243 252.11 1998BWater/Sewer/PWRF 717,824 (717,824) 410.760.58241.572010
410.225243 252.11 1998B Water/Sewer/PWRF 30,844 (30,844) 410.770.58241.572010
410.225243 252.11 1998B Water/Sewer/PWRF 2,756,332 (2,756,332) 410.775.58241.572010 -
410.225248 252.11 2002 Rev Bond Water 46.10% 1,979,995 (122,165) 410.760.58241.572010 1,857,830
410.225248 252.11 2002 Rev Bond Sewer 38.50% 1,653,575 (102,025) 410.770.58241.572010 1,551,550
410.225248 252.11 2002 Rev Bond Irrigation 15.40% 661,430 (40,810) 410.795.58241.572010 620,620
410.225249 252.11 2005 Rev Bond Water 3,735,000 (170,000) 410.760.58241.572010 3,565,000
410.225250 252.11 2009 Revenue Bond Water Plant 9,145,000 (305,000) 410.760.58241.572010 8,840,000
410.225252 252.11 20 10A 50%Water New - 3,135,000 410.760.58241.572010 3,135,000
410.225252 252.11 2010A 50%Sewer New 3,135,000 410.770.58241.572010 3,135,000
410.225252 252.11 2010A Ref98B Water 20.48% 573,440 410.760.58241.572010 573,440
410.225252 252.11 2010ARef98B Sewer.88% - 24,640 - 410.770.58241.572010 24,640
410.225252 252.11 2010A Ref 1998B PWRF 78.64% 2,201,920 410.775.58241.572010 2,201,920
410.225253 252.11 2010T Refund 98 A PWRF 1,240,000 410.775.58241.572010 1,240,000
Total Revenue Bonds 26,745,000
External Notes&Loans-Nonwted
410.226380 263.82 Sewer Pollution Control Facility PWTF 95-02 258,068 (43,011) 410.770.58241.579090 215,057
410.226380 263.82 West Pasco Water SystemPWTF95-026 644,252 (107,375) 410.760,58241.579090 536,876
410.226380 263.82 Riverview Trunk/SE Sewer PW00-042 1,222,544 (111,140) 410.770.58241.579090 1,111,404
410.226381 263.82 Sewer Treatment Plant Phase l&2SRFLoan 14,423,946 (1,225,749) 410.770.58241.579090 13,198,197
Total External Loans 15,061,534
CommensatedAbsences 152,046 506,821 (327,731) 331,136
See Special Assessment Below 2,380,000
TOTAL BUS]NESS ACTIVITIES PER FOOTNOTE 44,517,670
Gowrnmental Suecial Assessment-Debt w/Commitment
735.221705 253.12 2001 Local Improvement District No.135 15,000 (15,000) 735.950.58241.577000 -
850.225311 253.12 2010 LID 145-A Street Improvements - 785,129 - 245.980.59195.573010 785,129
Total GodtSpec Assess w/Commitment 785,129
Bus Ines s S Mcial As s es s ment-Debt w/Commitment
410.225244 1998C Rev Bond ULID130&131 215,000 (105,000) 410.770.58241.572010 110,000
410.225245 1999 ULID 133&134-Sewer 485,000 (50,000) 410.770.58241.572010 435,000
410.225246 2001 ULID 136&137-Sewer 370,000 (70,000) 410.770.58241.572010 300,000
410.225249 2007 ULID 141&142-Sewer 745,000 (50,000) 410.770.58241.572010 695,000
410.225250 2009 ULID 143-Sewer 900,000 (60,000) 410.770.58241.572010 840,000
Total Business Spec Assess W Commitment 2,380,000
121
City of Pasco, -Washington 2010 Comprehensive .Annual Financial Report
MCAG NO. 0292
SCHEDULE 10 - LIMITATION OF INDEBTEDNESS
For the Year Ended December 31, 2010
Property Valuation for 2009 Taxes* $ 2,916,936,072
GENERAL PURPOSES
Limit of 2.5% of Assessed Value
Councilmanic:
Capacity (1.5% of Assessed value) 43,754,041
Less:
G.O. Bonds Outstanding $ 6,990,000
State LOCAL Loans 271,571
T.R.A.C. Obligation 368,276
Airport Fire Station 72,845
O P E B 582,589
Compensated Absences 1,717,940
Outstanding Debt 10,003,221
Remaining debt capacity witout a vote 33,750,820
Voter-Approved:
Capacity (1.0% of Assessed Value) 29,169,361
Less:
G.O. Bonds Outstanding 1,950,000
Outstanding Debt 1,950,000
Remaining debt capacity with a vote 27,219,361
UTILITY PURPOSES
Voter-Approved:
Capacity (2.5% of Assessed Value) 72,923,402
Remaining debt capacity- Utility Purpose, voted 72,923,402
OPEN SPACE AND PARK FACILITIES
Voter-Approved:
Capacity (2.5% of Assessed Value) 72,923,402
Remaining debt capacity-Open Space Park& Facilites, voted 72,923,402
*From Franklin County Tax Collection Book
122
City of Pasco, Washington 2010 Comprehensive .Annual Financial Reeport
MCAG NO.0292
SCHEDULE 16-SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31,2010
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 $ 26,569 $ 26,569
Total US Dept of Health&Human Senaces 26,569 - 26,569
US Department of Federal Emergency Management Agency
Self Contained Breathing Apparatus 97.044 EMW-2008-FO-03704 109,200 109,200
Total US Department of FEMA - 109,200 109,200
US Department of Energy
Energy Efficiency and Conservation Block Grant(ARRA) 81.128 DE-SC0002086 12,510 12,510
Total US Department of Energy - 12,510 12,510
US Department of Housing&Urban Development
Community Development Block Grant/Entitlement Grant 14.218 B-10-MC-53-009 774,114 774,114
Community Development Block Grant(ARRA) 14.253 B-09-MY-53-009 153,082 153,082
Pass Through Washington Department of Commerce -
Neighborhood Stabilization Plan 14.228 08-F6401-014 323,797 323,797
Total US Department of Housing&Urban Development 1,250,993 - 1,250,993
US Department of Justice
Edward Byrne Memorial JAG 16.738 2009-DJ-BX1308 1,012 1,012
Edward Byrne Memorial JAG 16.738 2010-DJ BX0205 24,544 24,544
Edward Byrne Memorial JAG(ARRA) 16.804 2009-SB-B9-2881 10,417 10,417
Pass Through from City of Kennewick
Project SAFE Neighborhood 16.609 F09-34023-002 6,273 6,273
Project SAFE Neighborhood 16.609 F08-66205-003 2,255 2,255
Pass Through from Department of Commerce
Stop Grant-Violence Against Women 16.588 F09-31103-141 23,629 23,629
Stop Grant-Violence Against Women 16.588 F10-31103-141 8,261 8,261
Pass Through from METRO Drug Task Force
Edward Byrne Memorial Formula Grant (ARRA) 16.803 M09-34721-012 58,944 58,944
Edward Byrne Memorial Formula Grant Program(Narcotics Task Force) 16.738 M10-34021-012 54,789 54,789
Bullet Proof Vest Partnership Program 16.607 V482011004 3,468 3,468
Total US Dept of Justice 154,151 39,441 193,592
National Traffic Safety Administration
Pass through Washington Association of Sherrif&Police Commission
State and Community Highway Safety
-WASPCA-Equipment&Training Manual 20.600 4,405 4,405
4,405 4,405
US Department of Transportation
Pass through Washington Traffic Safety Commission
Traffic Safety-D H GN DUI Emphasis 20.601 2,308 2,308
Traffic Safety-COT Click-it-or-Ticket 20.602 678 678
Traffic Safety-Slow down/Payup 20.600 13,448 13,448
Benton Franklin County Traffic Safety Task Force 20.601 40,681 40,681
Pass through Washington Department of Transportation
-Highway Planning&Construction-Lewis St Overpass 20.205 STPD-STPUS-HLP-3530(006) 46,764 46,764
Total US Dept.of Transportation 103,879 - 103,879
TOTAL FEDERAL AWARDS EXPENDED: $1,539,997 $ 161,151 $1,701,148
123
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
MCAG NO.0292
CITY OF PASCO
SCHEDULE 16-SCHEDULE OF STATE AND LOCAL FINANCIAL ASSISTANCE
For the Year Ended December 31,2010
Grantor/ Federal Other Pass-
Pass-Through Grantor CFDA Identification Through Direct
Program Title Number Number Awards Awards Total
Washington Association of Sherriffs&Police Chiefs
Sex Offender- (Franklin County) Interlocal Agency Agreement 1,940 1,940
Total Interlocal pass through Franklin County 1,940 - 1,940
Pasco School District
Argent&Road 84 Interlocal Agency Agreement 600,021 600,021
Total Interlocal pass through Franklin County - 600,021 600,021
Washington State Administration of Courts
Interpreter Grant(Municipal Court) IAA10224 9,845 9,845
Total Administration of Courts 9,845 9,845
Washington State Department of Transportation
-Highway Planning&Construction-Lewis St Overpass LA-7055 1,912,245 1,912,245
Total Washington State Department of Transportation 1,912,245 1,912,245
Washington State Patrol
Fire Fighter Training for Patrol Officers C100739GSC 7,942 7,942
Total Washington State Patrol 7,942 7,942
Washington Department of Commerce
Commercial Avenue LG09-951-084 707,367 707,367
E.Rd 40 Sewer Extension CJ09-951-110 550,000 550,000
Total Washington Department of Commerce 0 1,257,367 1,257,367
Department of Health&Human Services
EMS Prehospital Participation Grant(Trauma Care) 303-GLA-70.168 2,186 2,186
2,186 0 2,186
TOTAL STATE AND LOCAL ASSISTANCE: $ 4,126 $ 3,787,420 $3,791,546
124
City of Pasco, 'Washington 2010 Comprehensive ✓`InnuaCTinancial Report
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 2010 for the rehab loan
program. The amount of principal and interest received in loan repayments for the year was $49,640.
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.
125
City of Pasco, 'Washington 2010 Comprehensive AnnuaCTinanciaCReport
MCAGNO.0292
SCHEDULE 17-LIMITATION ON PUBLIC WORKS PROJECTS PERFORMED BYPUBLIC EMPLOYEES
For the Year Ended December 31,2010
Total current public work construction budget as amended 25,220,884
Allowable portion of total public works (10%) 2,522,088
Less:Amount(if any)in excess of permitted amount from prior budget period -
Total allowable public works 2,522,088
Total public works projects performed by public employees during the current
year(including work performed by the county) 311,905
Restricted under(over)allowable 2,210,183
NOTE: If the restricted amount is over the allowable,this amount must be carried forward to the next
budget period report.
126
City of Pasco, tiVashinqton zoio Comprehensive .Annual Eijjancial Report
MCAG NO.0292
SCHEDULE 19-LABOR RELATIONS CONSULTANTS
For the Year Ended December 31,2010
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: $11,962.90 Amount Paid During Fiscal Year: $2,248.50
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 8th day of February,2011,to the best of my knowledge and belief:
Signature l�
HR Manager
127
City of Pasco, 'Washington 2010 Comprehensive AnnuaCTinancialR.eport
MCAG NO.0292
SCHEDULE 21 -LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31,2010
Program Manager: Lynn Jackson
Address: 525 N 3rd Ave Pasco Wa 99301
Phone: 509-545-3473
Email• iacksorOpasco-wa.gov
Yes Does the entity self-insure for any class of risk,including liability,property,health and
welfare,unemployment compensation,workers'compensation?(yes or no)
Which class of risk does the entity seY-insure?(Check all that apply)
Liability
Property
X Health and welfare(medical,vision,dental,prescription)
Unemployment compensation
Workers'compensation
Other-please dscnbe
Yes Does the entity self-insure as an individual program?(yes or no)
No Does the entity allow another separate legal entity into its self-insurance
programs(yes or no)For example,employees of a different organization
participate in a health and welfare program of a city.
If so,list the entity or entities:
NA Does the entity self-insure as a joint program?(yes or no)
If Yes,list the other member(s)
No Does the entity administer its own claims?(yes or no)
Yes Does the entity contract with a third party administrator for claims administration?(yes or no)
Yes Did the entity receive a claims audit in the last three years,regardless of who administered
the claims?(yes or no)
Yes Were the program's revenues sufficient to cover the program's expenses(yes or no)
No Did the program use an acturary to determine its liabilities?(yes or no)
128
City of Pasco, 'Washington 2010 Comprehensive AnnualFinancialR.eport
MCAG NO.0292
SCHEDULE 21 -LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31,2010
Third Party Administrator BMI,Inc
Contact Kepi Gerstenkorn
Address: P.O.Box 1090,Great Bend,KS 67530
Phone: 620.793.1152
Email: kgPNtenknm(ahrrikancac=
Describe each class ofrisk the governing body ahs decided to assume as well as the appropriate
dollar level involved.
Numbers of claims Numbers of claims Total amount of
Description of Risk Type received during the paid during the claims paid
period period during the period
Medical/Rx 20,157 17,888 2,862,189.76
Dental 1,530 1,345 309,680.64
129
City of Pasco, 'Washington 2010 Comprehensive AnnuaCTinancialR.eport
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.
Richard G. Terway
Administrative and Community Service Director
Dunyele Mason
Financial Services Manager
Debbie Maxwell
Accounting Supervisor
Karen Conn
Staff Accountant
130