HomeMy WebLinkAbout2012 ACFR COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF PASCO, WASHINGTON
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2012
CITY OF
L' PASCO - - -
qlqppp PIF-
Prepared by:
Finance Division
Dunyele Mason, CPA-Financial Services Manager
Administrative and Community Services Department
Richard G. Terway-Director
City of Pasco, `tiVashington 2012 Comprehensive .Annual Tinancial Report
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................ 1
Certificate of Achievement for Excellence in Financial Reporting....................................... 7
Organizational Chart ........................................................................................... 8
Directory of City Officials and Management Team........................................................ 9
FINANCIAL SECTION
Independent Auditor's Report ................................................................................. 10
Management's Discussion and Analysis .................................................................... 13
Basic Financial Statements
Government Wide Financial Statements
Statement of Net Position........................................................................................... 26
Statement of Activities..................................................................................... 27
Fund Financial Statements
Balance Sheet—Governmental Funds......................................................................................... 28
Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds.. 29
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balance of
Governmental Funds to the Statement of Net Activities............................................. 30
Statement of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual-
GeneralFund.............................................................................................. 31
Statement of Net Position- Proprietary Fund............................................................ 32
Statement of Revenues, Expenses and Changes in Net Position—Proprietary Funds.............. 33
Statement of Cash Flows—Proprietary Fund........................................................... 34
Statement of Net Position—Fiduciary Funds............................................................ 35
Statement of Changes in Net Position—Fiduciary Funds................................................ 36
Notes to Financial Statement.................................................................................. 37
Required Supplementary Information
Firemen's Pension Fund.................................................................................. 79
Other LEOFF 1 OPEB.................................................................................... 80
Firemen's OPEB Fund.................................................................................... 81
Combining and Individual Fund Statements
Combining Balance Sheet—Nonmajor Other Governmental Funds ................................ 83
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Other Governmental Funds ................................................................. 84
Schedule of Expenditures—Budget to Actual—Nonmajor Other Governmental Funds ........... 85
Combining Balance Sheet—Nonmajor Special Revenue Funds ................................... 86
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Special Revenue Funds...................................................................... 90
Combining Balance Sheet—Nonmajor Debt Service Funds.......................................... 94
TABLE OF CONTENTS (continued)
City of Pasco, `Washington 2012 Comprehensive .Annual Tinancial Report
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Debt Service Funds.......................................................................... 95
Combining Balance Sheet—Nonmajor Capital Project Funds....................................... 96
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Capital Project Funds........................................................................ 97
Combining Statement of Net Position—Nonmajor Internal Service Funds........................ 99
Combining Statement of Revenues, Expenses, and Changes in Net Position—
Nonmajor Internal Service Funds...................................................................... 100
Combining Statement of Cash Flows—Nonmajor Internal Service Funds................................ 101
Combining Statement of Net Position—Fiduciary Funds.......................................... 103
Combining Statement of Changes in Net Position—Fiduciary Funds............................... 105
Combining Statement of Changes in Assets and Liabilities—Agency Funds...................... 106
STATISTICAL SECTION
Financial Trends
NetPosition by Component.................................................................................................... 110
Changesin Net Position............................................................................................................. 111
Governmental Activities Tax Revenues by Source....................................................... 113
Fund Balances of Governmental Funds................................................................................... 114
Changes in Fund Balances of Governmental Funds................................................................ 115
Revenue Capacity
Assessed Value of Taxable Property .......................................................................................... 116
Excise Taxes by Type/Property Tax Rates ................................................................................ 117
Taxable Retail Sales/Principal Property Taxpayers........................................................... 118
Principal Excise Taxpayers .................................................................................... 119
Top Ten Industries that Generate Sales Tax.............................................................. 120
Property Tax Levies and Collections...................................................................................... 121
Debt Capacity
Ratios of Outstanding Debt by Type/Ratio of General Bonded Debt Outstanding....................... 122
LegalDebt Margin.............................................................................................................. 123
Pledged Revenue Coverage..................................................................................................... 124
Direct and Overlapping Governments Activities Debt................................................... 125
Demographic and Economic Information
Demographic and Economic Statistics.......................................................................................... 126
PrincipalEmployers...................................................................................................... 127
Non Agriculture Wage and Salary Workers.............................................................. 128
BuildingPermits............................................................................................. 129
Operating Information
Full Time Equivalent City Government Employees by Function...................................... 130
Operating Indicators by Function......................................................................... 131
Capital used by Function................................................................................... 132
City of Pasco, `Washington 2012 Comprehensive .Annual Tinancial Report
STATE REQUIRED SCHEDULES
Schedule 9 - Long-Term Debt - L.I.D. Assessments & General Obligations and Revenue........... 134
Schedule 10—Limitation of Indebtedness.................................................................... 135
Schedule 16 - Expenditures of Federal, State and Local Financial Assistance.......................... 136
Notes to Schedule of Expenditures of Federal, State and Local Financial Assistance.................. 138
Schedule 19 - Labor Relations Consultants.................................................................. 139
Schedule 21 —Local Government Risk Assumption....................................................... 140
Acknowledgements ............................................................................................. 142
City of Pasco, Washington 2012 Comprehensive .annual E-inancial Report
"Appreciation is a wonderful thing; it makes what is excellent in others
belong to us as well."
Voltaire
City of Pasco, 'Washington 2012 Comprehensive AnnuaCFinancia.CReport
6/27/2013
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, 2012. 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, 2012.
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, 2012 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, 2012 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.
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City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
The independent audit of the financial statement information for the year ended December 31,
2012 also required a broader federal mandated "Single Audit" designed to meet the special needs
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, Kennewick and surrounding area 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
was 186,600. The 2010 census population for the City of Pasco was 59,781 and the 2010 Tri-
Cities Metropolitan Area population was approximately 253,340. For 2012 the city' population is
estimated at 62,670. This represents a 96% growth rate in Pasco's population since the 2000
census.
Initially established in 1884, the City was incorporated in 1891, and has operated under 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, a cemetery
and a championship golf course. The City also owns a baseball stadium that is leased to an
independent operator.
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City of Pasco, 'WashiAgton 2012 Comprehensive AnnualginanciaCAeport
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
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 rather than the general sewer system. 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
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City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
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.
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
added 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 increases, corporate bankruptcies, layoffs and
relocations, the War on Terrorism, and soaring gasoline and energy prices.
Residential home, retail business and professional office construction have continued to grow,
with a high concentration of new growth taking place in the Interstate I-182 and Road 68 area.
Over the past 8 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 2012, the Pasco economy was stable and continued to grow but at a slower pace. The city
issued a total of 1,889 building permits representing approximately $141 million in construction
costs. Of the total permits, 314 were for new single-family residences which equates to $72
million in assessed valuation. The average value of a new home in Pasco was just over $231,000
in 2012.
While total revenue to the general fund is expected to grow by more than $1 million, tax revenue
is estimated to grow by only 1.5% in 2013 as compared to 2012's budget. When compared to
2009 actual tax receipts, the 2013 projection of tax revenues reflects less than 1% increase over
the past four years. For the past decade the city has opted to "bank" the levy capacity rather than
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City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
increase property taxes by the maximum legal limit. This has resulted in an accumulated banked
levy capacity of$1,681,214.
In 2012 the county's residents approved a new three tenths of one percent sales tax increase
devoted to criminal justice. This new revenue source will fund a new four person Street Crimes
unit in the city's police department, pay the cost (and/or debt service) to replace the city's
Municipal Court building as well as fund the construction of a new police station. In 2012 there
were no personnel lay-offs or furloughs and for the first time in a couple of years, there were also
pay increases for all personnel groups.
2013 is planned overall to be a "status quo" year with revenue sources overall holding steady;
while 2014 may face more serious revenue challenges. Given the significant fiscal challenges at
the state level, revenues that are currently received from the state to cities are at risk of reduction
and/or elimination. A 4% decrease in certain state revenues has been factored into the 2013
budget. Discussions at the state level include the possibility of elimination of several of those
revenue sources altogether in 2014. Fortunately the City of Pasco's general fund has sufficient
reserves to address shortfalls in the near term. The city has systematically refinanced debt over
the last several years to take advantage of the lower interest rates thereby lowering its annual
costs. In 2013 the city expects borrowing rates to remain low and has planned several debt
issuances to provide for major infrastructure improvements. The city is expecting continued
growth in the west and plans to facilitate growth through investment in a major sewer main
extension. Also, there is a major construction upgrade in process to expand the capacity at the
process water reuse facility to accommodate additional food processing activity. The city is
continuing a project to install a new major irrigation line to address the city's growing water
resource needs.
In 2012 the city reviewed the costs of providing ambulance and fire services. These two
functions are carried out using many shared resources. Additionally, collections from billing and
the Ambulance Fund balance have continued to decline. The specific identification of ambulance
costs were reviewed and indicated the need for significant additional resources to cover those
costs. Accordingly in 2012 the subsidy by the General Fund to the Ambulance fund will
increased from$420,000 to $890,000. Accordingly rate increases were passed in both 2012 and a
second increase went into effect January 2013. Accordingly, the subsidy for ambulance services
is 2013 is expected to drop back down to $420,000.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Pasco
for its comprehensive annual financial report for the fiscal year ended December 31, 2011. In
order to be awarded a Certificate of Achievement, a government must publish an easily readable
and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
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City of Pasco, 'Washington 2012 Comprehensive Annual Tinancial Report
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
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,
Gar �Crulchlf eld Richard G. Terway Dunyele Mason
Ci Mana er Director Administrative & Financial Services Manager
o unity Services
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City oPasco. -Washington 2012 Comprehensive 2lnnualEinancialRebort
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pasco
.Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2011
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs)achieve the highest
standards in government accounting
and financial reporting.
\ ~10S -
U?lITE �TA1ES�y
` t President
�, co�►o�riorr ,�
Executive Director
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City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
2012 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 2012 Comprehensive AnnualginanciaCAeport
Directory of City Officials and Managers
As of December 31,2012
Elected Officials Length in Position Term Expires
Mayor
Matt Watkins 3 12/31/2015
Council Members
Rebecca M.Francik 15 12/31/2015
Michael Garrison 24 12/31/2013
Robert Hoffman 7 12/31/2013
Tom Larsen 11 12/31/2013
Saul Martinez 3 12/31/2013
Al Yenney 5 12/31/2015
Administrative Officials Length in Position Years of Service
City Manager Gary D.Crutchfield 28 34
Deputy City Manager Stanley R.Strebel 3 14
Public Works Director Ahmad Qayoumi 2 2
Administrative&Community Services Director Richard G.Terway 3 3
Community Development Director Rick White 5 5
Fire Chief Robert W.Gear 4 4
Police Chief Robert W. Metzger 1 1
Municipal Court Judge David L.Petersen 1 1
Management Team
Personnel Manager Lynne Jackson 9 9
Finance Manager Dunyele Mason 2 2
Customer Service Manager Sarita Cooper 13 15
Information Services Manager Jesse Rice 3 15
Recreation Manager Carlene Hanscom 3 3
Facilities Manager Dan Dotta 5 13
Inspection Services Manager Michel Nickolds 14 14
Court Administrator Dorothy R.French 26 29
Captain-ISD James Raymond,Captair 12 30
Captain-Patrol Ken Roske,Captain 8 16
City Engineer Mike Pawlak I I
Plant Division Manager Reuel Klempel 8 10
Field Division Manager Jesse U.Greenough 17 17
Construction Manager Kent McCue 5 5
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City of Pasco, -Washington 2012 Comprehensive .annual EtnanciaCReport
cv V
NVashington State .,kuditor
Trt►v Kelley
INDEPENDENT AUDITOR'S REPORT
Jure 25, 2013
Council
City of Pasco
Pasco, Washington
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the
business=ype activities, each major fund ano the aggregate retraining fund information of the
City of Pasco. Franklin County. Washington, as of and for the year ended December 31, 2012.
and the related notes to bite financial statements. which collectively comprise tha City's basic
Financial statements as I'sted in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance wah accounting principles generally accepted in the United States of
America; this includes the design, implementation. and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free front material
misstatement. whether due to fraud or error
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to firanaal 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 from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and
disclos,ires in the financial statements. The procedures selected depend on the auditor's
judgment. including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error In making those risk assessments, the auditor
considers internal control relevant to the City's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing opinions on the effectiveness of the City's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the
~ I,.,urunr llul1Ju.U.110"JAU11 • 1NJVftQ-L%-,- 70U 1404ij IxWl b tl-63*,
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City of Pasco, Washington 2012 Comprehensive AnnualginanciaCAeport
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of the City of Pasco, Franklin County,
Washington, as of December 31, 2012, and the respective changes in financial position and,
where applicable, cash flows thereof, and the respective budgetary comparison for the General
fund for the year then ended in accordance with accounting principles generally accepted in the
United States of America
Matters of Emphasis
As described in Note 1, during the year ended December 31, 2012, the City has implemented
the Governmental Accounting Standards Board Statement No. 63, Financial Reporting of
Deferred Outflows of Resources. Deferred Inflows of Resources and Net Position. Our opinion
is not mcdified with respect to this matter
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 13 through 24, information on pension trust
fund information on page 79 and postemployment benefits other than pensions on pages 80
through 81 be presented to supplement the basic financial statements. Such information.
although not a part of the basic financial statements is required by the Governmental
Accounting Stardards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic or historical
context We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America.
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries. the
basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Supplementary and Other Information
Our audits were conducted for the purpose of forming opinions on the financial statements that
collectively comprises the City's basic financial statements as a whole. The accompanying
information listed as combining financial statements and supplementary information on pages
82 through 108 is presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare
the financial statements. This information has been subjected to auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including
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City of Pasco, -Washington 2012 Comprehensive .annual EtnancialReport
comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the information 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 Sections 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 do not express an
opinion or provide any assurance on it,
OTHER REPORTING REQUIRED By GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated June
26. 2013. 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 internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Gmemment Auditing Standards in
considering the City's internal control over financial reporting and compliance
Sincerely,
TROY KELLEY
STATE AUDITOR
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City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
MANAGEMENTS' DISCUSSION AND ANALYSIS
As management of the City of Pasco, we offer readers of the financial statements this narrative
overview and analysis of the financial activities of the City of Pasco for the fiscal year ended
December 31, 2012. 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 $335,236. Of this amount, $41,334 may be used to meet the government's
ongoing obligations to the citizens and creditors.
• The city's total net position increased by $18,057. Approximately 17% of that increase is
due to increases in business-type activities and 83% 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$23,292 a decrease of$3,060 in comparison with the
prior year.
• At the end of the current fiscal year, the unrestricted, unassigned fund balance for the
general fund was $6,264 which also represents 19% of total general fund expenditures.
There was an overall $1,722 decrease in the general fund due to $3,564 in transfers to
other funds. Of these transfers, $2,564 was for one time expenditures primarily devoted
to capital projects.
• Spending on governmental activities included in the Capital Improvement Plan during
2012 totaled $4,688. The largest project was $1,192 for rebuilding the 4th Avenue
Corridor(South)to add a roundabout and other traffic calming features to improve safety.
Other major street projects was $691 to continue revitalization of the Kurtzman area,
$721 for the continuing work on the Lewis St overpass project, and a variety of other
street project totaling $503. The city ordered a new fire ladder truck and made partial
payments of$435. In conjunction with the county, the city has committed to constructing
new municipal court space. $176 of the $3,105 project occurred in 2012. City Hall
replaced a portion of its roof for $239. The city entered into a $585 contract to replace its
financial system software and $176 was paid out in 2012. The remaining amounts were
spent on repaving two parks and the stadium's parking lots.
• Spending on business activities included in the Capital Improvement Plan during 2012
totaled $3,596. Included was $691 spent on the meter replacement and cross connection
program, $258 for a new water intake from the Columbia River, and $59 in other water
projects. The sewer system invested $ 1,457 in plant improvements and $93 (design) of a
lift station, both of which were funded from the 2010 bond issue as well as $96 in other
sewer projects. The Process Water Reuse Facility embarked on $3,000 of capacity plant
upgrades spending $475 in 2012. The stormwater system invested $88. The USBR
13
City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
Irrigation Connection is a $2,500 project funded primarily by state grants and $159 of
costs were incurred in 2012; a well was replaced for $165 and other minor projects
totaled $56.
• Private development contributed a total of$15,447 in governmental activity
infrastructure and $3,742 in utility infrastructure.
• The city did not issue any new debt. Temporary construction financing was provided
internally for LID 148 and 149.
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 position presents information on all of
the City of Pasco's assets and liabilities with the difference between the two reported as net
position. Over time increases or decreases in net position 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 position
changed during the most recent fiscal year. All changes in net position 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-Type Activities). 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 26-27 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.
14
City of Pasco, WashiAgton 2012 Comprehensive AnnualginancialReport
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 ou flows 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 fiend 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-two individual governmental funds including the general
fund. Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fiend balances for the
general fund, which is a major fund as defined by the Governmental Accounting Standards
Board. In 2012 the general fund was the only major governmental fiend. Data from the other
funds are combined into a 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 28 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 fiends 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 fiends (equipment
15
City of Pasco, 'Washington 2012 Comprehensive AnnualginancialReport
maintenance and equipment replacement of utility equipment) are combined into a single,
aggregated presentation in the basic proprietary fund financial statements starting on page 32.
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 35 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 37.
Government-wide Financial Analysis
As noted earlier, net position 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 $335,237 at the
close of the most recent fiscal year. The largest portion of the City of Pasco's net position (88%)
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 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. 4% of the City of Pasco's net position represent resources that are subject to
external restrictions on how they may be used. The remaining $29,336 of unrestricted net
position (9%) may be used to meet the government's ongoing obligations to citizens and
creditors.
City of Pasco's Net Position(in millions)
Governmental Activities Business Activities 7 JTotal Primary Governmen
2012 2011 2012 2011 2012 2011
Current assets $ 31.64 $ 34.00 $ 15.97 $ 13.71 $ 47.61 47.71
Capital and noncurrent assets 169.76 154.50 167.55 170.41 337.31 324.91
Total assets 201.40 188.50 183.52 184.12 384.92 372.62
Current liabilities 3.86 3.23 5.54 5.74 9.40 8.97
Noncurrent liabilities 7.34 9.99 32.95 36.48 40.29 46.47
Total liabilities 11.20 13.22 38.49 42.22 49.69 55.44
Net position:
Investment in capital assets 163.58 144.72 130.32 129.53 293.90 274.25
Restricted 12.00 0.40 - - 12.00 0.40
Unrestricted 14.62 30.16 14.71 12.37 29.33 42.53
Total net position $ 190.20 $ 175.28 $ 145.03 $ 141.90 $ 335.23 $ 317.18
At the end of the current fiscal year, the city of Pasco is able to report positive balances in all
three categories of net position, 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.
16
City of Pasco, Washington 2012 Comprehensive AnnualginanciaCAeport
The government's net position increased by $18,057 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 increase ($15,447 or 86%) was
through contributions of infrastructure from private development and other governmental
agencies.
City of Pasco's Change in Net Position(in millions)
Governmental Activities Business Activities ITotal Primary Govemmen
2012 2011 2012 2011 2012 2011
Revenues
Program revenues:
Charges for services $ 13.29 $ 12.64 $ 18.03 $ 17.77 $ 31.32 $ 30.41
Operating grants&contributions 1.04 1.76 0.41 0.37 1.45 2.13
Capital grants&contributions 16.14 28.34 5.60 5.68 21.74 34.02
General revenues:
Property taxes 6.66 6.85 6.66 6.85
Other taxes 21.17 20.16 21.17 20.16
Investment income and miscellaneous 4.65 3.30 0.03 0.18 4.68 3.48
Total revenues 62.95 73.05 24.07 24.00 87.02 97.05
Program expenses:
General government 6.73 6.53 6.73 6.53
Public safety 20.49 19.90 20.49 19.90
Physical environment 2.99 2.41 2.99 2.41
Transportation 9.91 9.85 9.91 9.85
Health and human services 2.39 1.04 2.39 1.04
Economic environment 0.42 0.25 0.42 0.25
Culture and recreation 8.22 7.70 8.22 7.70
Interest on long term debt 0.32 0.52 0.32 0.52
Water 6.76 6.85 6.76 6.85
Sewer 7.43 7.92 7.43 7.92
Process waterreuse 1.18 1.50 1.18 1.50
Storm water 1.03 0.96 1.03 0.96
Irrigation 1.10 1.04 1.10 1.04
Total expenses 51.47 48.20 17.50 18.27 68.97 66.47
Changes in net position 11.48 24.85 6.57 5.73 18.05 30.58
Transfers 3.44 (3.44) - -
Total changes in net position $ 14.92 $ 24.85 $ 3.13 $ 5.73 $ 18.05 $ 30.58
Governmental activities. Governmental activities increased the City of Pasco's net position by
$14,916 or 83% of the total change in net position. $15,447 of increase was from contributions
of infrastructure from private and other governmental agencies.
While the pace of construction slowed in 2012 as compared to the prior year, residential growth
continued in the city. For the most part, the city weathered the general economic challenges
throughout the state with a continued growth of.8% and a net change of$1,186 in tax revenues.
Property tax revenues continued to grow through increases in new construction and assessed
valuation and sales tax continued to grow from new construction and continued improved
economic climate. The city was able to maintain status quo on the number of approved personnel
17
City of Pasco, "Washington 2012 Comprehensive Annual financial Report
positions and added four police officer positions which were funded by the new voter approved 3
tenths of one percent public safety sales tax. The city was able to fund step increases, bargaining
positions received contractual adjustments; and nonrepresented personnel received a cost of
living adjustment in 2012. Without regard to the contributed capital assets, the city's
governmental activity revenue of$50,949 was slightly less than related expenses of$51,480.
GOVERNMENTAL ACTIVITES—REVENUES BY SOURCE
Sources of Revenues 2012 Sources of Revenues 2011
Investment Charges for
income and services Investment
miscellaneous 21% income and Charges for
7% miscellaneous services
5% 18%
Operating
Grants& Operating
Contributions Other taxes grants&
2% 29% contributions
2%
Other Taxes
33%
Capital
grants& Property
taxes Capital grants
Property contributions 10 &
taxes 26 contributions
11% 36%
GOVERNMENTAL ACTIVITIES —EXPENSES AND PROGRAM REVENUES
25.00
20.00
v. 15.00
0
10.00 —
5.00
c� C� cc °C cti y5 0 pa
Safe 4P
c
°c
o S`
NP
°c
2012 Expense 2 2012 Revenue a 2011 Expense ■2011 Revenue
18
City of Pasco, 'Washington 2012 Comprehensive AnnuaCFinancia.CReport
Business-type activities. 17% of the increase in the City of Pasco's net position was related to
business-type activities. $3,732 of the $3,141 increase was from private developer capital
contributions. The city implemented a stormwater rate increase and a sewer rate decrease in
2012. The changes in these rates were expected to have offsetting impact on residential
customers. The stormwater rate increase was needed due to recover the full costs of doing
business. 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 private
developer contributed capital assets, the city's business activity revenues of $20,033 exceeded
on-going related expenses of$17,495.
UTILITY ACTIVITIES—EXPENSES AND PROGRAM REVENUES COMPARISON
10.00
9.00 — -
8.00
7.00
6.00
J
J
5.00
4.00
i
3.00
2.00 — -
1.00 -
Water Sewer Prooess Water Stormwater Irrigation
Re use
2012 Expense ■2012 Revenue 2011 Expense - 2011 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.
19
City of Pasco, 'WashiAgton 2012 Comprehensive AnnualginanciaCAeport
As of the end of the current fiscal year, the City of Pasco governmental funds reported combined
ending fund balances of $23,292 a decrease of $3,060 in comparison with prior year.
Approximately 22% of this total amount, $5,010 constitutes unassigned 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, unassigned fund balance of the general fund was $6,264. As a measure of the general
fund's liquidity, it may be useful to compare unrestricted, unassigned fund balance to total
expenditures. This represents 19% of total expenditures.
The fund balance of the City of Pasco's general fund decreased by $1,722 during the current
fiscal year; which is 5% of current year revenues. Overall revenues increased by 5% ($1,467)
and total expenditures increased by 11% ($3,176). General fund revenues were affected by the
continued construction growth and related sales tax along with the new public safety sales tax
that was received for half of 2012.Offsetting this growth is a decline in business and occupation
taxes related to a couple of tax refund settlements for phone and natural gas taxes as some of
those related businesses determined by customer audit that they had been remitting taxes to the
City of Pasco for customers that did not live or do business inside the city limits. Overall, tax
revenue increased 5%. Charges for services increased about 16% from the prior year; mostly
from services rendered to other funds. Less was received in grant revenues ($249) which by its
nature is expected to fluctuate year to year.
The city was able to maintain status quo on the number of approved personnel positions and
added four police officers to staff a new crime unit. Several vacant police positions went unfilled
for most of the year. The city was able to fund step increases, and there was a general cost of
living wage adjustment in 2012 for nonrepresented and management employees. Union
employees were paid per contract terms. The general fund revenues of$34,016 were more than
related expenses of$32,714 before transfers in/out.
There were three individual fund changes in 2012. The first was the creation of a new School
Impact Fee fund. This new special revenue fund was created to account for the collection of a
new school impact fee and the pass through to the Pasco School District of the entire fee less a
small administrative fee kept by the city. The second fund change was to close the Landfill
Remediation Fund. This fund had no activity and its purpose was to use money's set aside in
previous years to fund potential future litigation arising from the closure of the private landfill
located in the city. Those funds were moved to the general fund and remain designated therein
for the same purpose. The third change was treated as a prior period adjustment whereby the Bi-
Centennial fund became part of the general fund and those funds shown as restricted cash.
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 Water/Sewer Utility separate from the internal service funds. Unrestricted net
position of the utility fund at the end of 2012 were $12,604. 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 2012 the utility is well positioned as it has current
20
City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
assets of $13,848 available to meet its current liability obligations of $5,535 resulting in a
working capital ratio of 2.50. The utility showed income before contributions, special item and
transfers of $273. The special item pertained to a transfer of ownership of the farm facility
operations from the Water/Sewer utility to the Economic Development fund which resulted in a
$3,259 one-time loss to the Water/Sewer utility. 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
There was virtually no change in appropriations between the original and final amended budget.
Capital funding authorized in the original budget ($417) was only partially spent ($257) in 2012.
Capital spending was canceled or postponed given the uncertainty of the economic climate in
2012.
Actual expenditures were 99.8% of both the original and revised budget; actual revenues were
106% of the original and 100% of revised budget. Revenue budgets are generally estimated low
due to protect the city from unanticipated fluctuations. Actual revenues exceeded actual
expenditures in by $1,302 (4%). Like capital, operating expenditures were held in check given
the economic uncertainty affecting revenues.
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, 2012 amounts to $293,903 (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 $18,777 for governmental activities and a decrease of $2,766 for business-type
activities. Approximately $4,767 of the change was related to the transfer of the farm facility
assets from the Water/Sewer Utility to the Economic Development fund.
Other major capital asset events during the current fiscal year included the following:
• Spending on governmental activities included in the Capital Improvement Plan during
2012 totaled $4,688. The largest project was $1,192 for rebuilding the 4th Avenue
Corridor(South) to add a roundabout and other traffic calming features to improve safety.
Other major street projects was $691 to continue revitalization of the Kurtzman area,
$721 for the continuing work on the Lewis St overpass project, and a variety of other
street project totaling $503. The city ordered a new fire ladder truck and made partial
payments of$435. In conjunction with the county, the city has committed to constructing
new municipal court space. $176 of the $3,105 project occurred in 2012. City Hall
replaced a portion of its roof for$239. The city entered into a $585 contract to replace its
21
City of Pasco, 'Washington 2012 Comprehensive .2lnnualginanciaCAeport
financial system software and $176 was paid out in 2012. The remaining amounts were
spent on repaving two parks and the stadium's parking lots.
• Spending on business activities included in the Capital Improvement Plan during 2012
totaled $3,596. Included was $691 spent on the meter replacement and cross connection
program, $258 for a new water intake from the Columbia River, and$59 in other water
projects. The sewer system invested $ 1,457 in plant improvements and $93 (design) of a
lift station, both of which were funded from the 2010 bond issue as well as $96 in other
sewer projects. The Process Water Reuse Facility embarked on $3,000 of capacity plant
upgrades spending $475 in 2012. The stormwater system invested$88. The USBR
Irrigation Connection is a $2,500 project funded primarily by state grants and $159 of
costs were incurred in 2012; a well was replaced for$165 and other minor projects
totaled $56.
• Private development contributed a total of$15,447 in governmental activity
infrastructure and $3,742 in utility infrastructure.
Additional information on the City of Pasco's capital assets can be found in note 4.C. starting on
page 52 of this report.
City of Pasco's Capital Assets at Year-End(in millions)
(Net of Depreciation)
Governmental Activities Business-Type Activities JTotal Primary Govemmen
2012 2011 2012 2011 2012 2011
Land $ 12.45 $ 7.55 $ 2.49 $ 6.60 $ 14.94 $ 14.15
Construction in process 7.69 5.65 15.51 13.90 23.20 19.55
Buildings and structures 25.02 25.46 31.98 34.12 57.00 59.58
Other improvements 4.63 5.07 - - 4.63 5.07
Machinery and equipment 3.93 3.94 2.20 2.39 6.13 6.33
Infrastructure 115.32 105.83 114.36 112.30 229.68 218.13
Total capital assets $ 169.04 $ 153.50 $ 166.54 $ 169.31 $ 335.58 $ 322.81
Long-term debt. At the end of the current fiscal year, the City of Pasco had total bonded debt
outstanding of$29,365. Of this amount $4,710 comprises debt backed by the full faith and credit
of the government. $24,260 of the City of Pasco bonded debt represents bonds secured primarily
by specified revenue resources (i.e. revenue bonds). The city has $395 in special assessment
bonds and $75 of special assessment notes outstanding at the end of 2012; both of which are
secured by the LID Guarantee Fund.
Additional information on the City of Pasco's long term liabilities can be found in note 4.17.
starting on page 55 of this report.
22
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
City ofPasco's Bonds and Notes
(in millions)
Governmental Activities Business-Type Activities ITotal Primary Governmen
2012 2011 2012 2011 2012 2011
General Obligation Bonds $ 4.71 $ 7.67 $ - $ - $ 4.71 $ 7.67
Special As s es s ement Bonds&Notes $ 0.40 $ 0.57 0.40 0.57
Revenue Bonds 24.26 26.24 24.26 26.24
Notes 0.37 0.54 11.96 13.53 12.33 14.07
Total $ 5.48 $ 8.78 $ 36.22 $ 39.77 $ 41.70 $ 48.55
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) are still continuing to grow. The city's population has increased to 62,670
persons. Next year the relatively stable local economy and low interest rates are expected to
continue fostering more housing construction; though at a slower pace than the recent past. The
general fund is expected to hold even in 2012 and is preparing for possible cuts in 2013 revenue
as the state's fiscal challenges remain. 2013 total general fund revenue is expected to remain at
about $33 million which is just $2 million more than 2008's revenue. Base sales tax is expected
to remain stable as tax on construction is expected to offset decreases in other discretionary
taxable sales. An overall increase of one million dollars in the sales tax category is expected due
to the first full year of the Public Safety Sales tax (three-tenths of one percent rate) to apply. In
June, 2012 the city started receiving an additional three tenths of one percent of new sales tax to
be used for criminal justice purposes which was passed by a vote of the people in November
2012. This tax will be used to fund the Street Crimes division (including four new positions) of
the police department. The rest of the sales tax is currently planned to fund the replacement of
the Municipal Court space inside a new County Courthouse with construction to start in 2013
and to fund future debt service for a new city police station which is planned for 2015. Utility tax
receipts which represent approximately 24% of the total general fund revenues are expected to
remain generally flat overall with rate and growth increases offset by company scrutiny of
customers classes inside the city limits which resulted in large numbers of customers move from
inside to outside city classification. Property tax receipts will be expected to increase modestly
due solely to the expected addition of at least $84 million in new taxable construction value
within the city. The depressed national economic conditions suggest that interest rates will
remain low for most of 2013. With the remainder of the city's longer term investment portfolio
maturing, the interest income from new investments in 2013 are expected to be significantly less
than the past several years even though the overall amount invested will remain fairly stable.
Step increases have been funded in the 2013 budget as well as a 2% general wage increase.
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 24% growth in claims over the past three years). The 2013 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. Due to increasing claim
23
City of Pasco, "Washington 2012 Comprehensive AnnualginancialReport
costs the reserves are only 40% as compared to the end of 2010. A premium increase was put in
place July 1, 2011, an additional premium increase occurred January 1, 2012 and another in
January 2013.
Recurring revenue for streets is estimated to total $1,269 million next year, with approximately
61% of that in the form of state shared gas tax ($780). In addition, the street fund receives a
direct allocation of local utility tax ($206) as well as the entire cable TV franchise fee ($262).
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 4th Ave corridor projects and a new project to redevelop Oregon
Avenue. These major street projects are funded primarily through federal and state grants. The
city continues to fund its arterial street overlay program through a dedicated portion of the
business utility taxes.
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. Utility revenues are expected to continue based on growth. No
rate increases for any of the utilities are planned for 2013.
In 2011 the city reviewed the costs of providing ambulance and fire services. These two
functions are carried out using many shared resources. Additionally, collections from billing and
the Ambulance Fund balance have continued to decline. The specific identification of ambulance
costs were reviewed and indicated the need for significant additional resources to cover those
costs. Accordingly in 2012, the subsidy by the General Fund to the Ambulance fund increased
from$420,000 to $890,000. In May 2012 the per household charge for ambulance service was
increased from $3.60 per month to $5.85 per month. The rate was further approved to increase to
$6.25 effective January 1, 2013; which is anticipated to return the general fund subsidy to
$420,000 for 2013.
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.
24
City of Pasco, -Washington 2012 Comprehensive .annual EtnanciaCReport
BASIC FINANCIAL STATEMENTS
25
City of Pasco, Washington 2012 Comprehensive AnnualginanciaCAeport
Statement of Net Position
December 31,2012
Governments] Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash&cash equivalents $ 23,657,507 $ 7,852,216 $ 31,509,723
Restricted cash&cash equivalents:
Customer depositsBi-centennial 257,055 561,657 818,712
Unspent bond proceeds 1,005,365 1,005,365
Revenue bond covenants 3,316,293 3,316,293
Investments 3,504,052 2,000,000 5,504,052
Receivables(net of allowances):
Taxes 2,116,475 2,116,475
Customers 1,690,988 881,264 2,572,252
Grants 277,581 40,418 317,999
Special assessments 131,885 - 131,885
Inventories 317,348 317,348
Total current assets 31,635,543 15,974,561 47,610,104
Noncurrent assets:
Restricted cash bond reserve 410,000 410,000
Special assessments &loans 536,218 608,241 1,144,459
Joint Ventures 170,346 170,346
Capital assets not being depreciated:
Land 12,453,988 2,494,425 14,948,413
Construction work in progress 7,693,195 15,512,175 23,205,370
Capital assets net of accumulated depreciation:
Buildings and structures 25,021,220 31,975,044 56,996,264
Other improvements 4,634,948 4,634,948
Machinery and equipment 3,932,199 2,196,829 6,129,028
Infiastructure 115,320,919 114,357,869 229,678,788
Total noncurrent assets 169,763,033 167,554,583 337,317,616
Total assets 201,398,576 183,529,144 384,927,720
LIABILITIES
Current liabilities:
Accounts payable 1,824,234 624,201 2,448,435
Due to other governments 30,435 3,173 33,608
Deposits payable 250,791 561,657 812,448
Accrued interest payable 639,468 639,468
Compensated absences-current 188,483 57,569 246,052
Net OPEB obligation-current 531,105 531,105
Loans to other govenvnents-current 151,149 1,621,743 1,772,892
Bonds-current 882,995 2,035,000 2,917,995
Total current liabilities 3,859,192 5,542,811 9,402,003
Noncurrent liabilities:
Compensated absences 1,738,622 387,753 2,126,375
Net OPEB obligation 1,164,044 1,164,044
Loans to other governments 217,909 10,333,849 10,551,758
Bonds 4,222,019 22,225,000 26,447,019
Total noncurrent liabilities 7,342,594 32,946,602 40,289,196
Total liabilities 11,201,786 38,489,413 49,691,199
NET POSITION
Net investment in capital assets 163,582,397 130,320,750 293,903,147
Restricted for:
Cemetery(nonexpendable) 418,181 418,181
Bi-centennial celebration 6,264 6,264
Streets and boulevards 6,489,219 6,489,219
Litter and housing abatement 288,372 288,372
Park development 1,739,296 1,739,296
Capital improvement 2,259,281 2,259,281
Economic development 220,870 220,870
Geneneral obligation debt 336,639 336,639
Special assessment debt 239,685 239,685
Unrestricted 14,616,586 14,718,981 29,335,567
Total Net Position $ 190,196,790 $ 145,039,731 $ 335,236,521
The notes to the financial statements are an integral part of this statement.
26
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Statement of Activities
For the Year Ended December 31,2012
Net Revenue(Expenses)and Changes in Net Position
Program Revenues Primary Government
Charges for Operating Capital
Services,Fines& Grants and Grants& Governmental Business-Type
Functional Programs Expenses Licenses Contributions Contributions Activities Activities Total
Primary Government:
Governmental Activities:
General government $ 6,729,927 $ 2,575,071 $ (4,154,856) $ (4,154,856)
Public safety 20,497,628 4,414,937 211,517 (15,871,174) (15,871,174)
Physical environment 2,992,359 1,405,555 (1,586,804) (1,586,804)
Transportation 9,913,283 309,722 48,154 16,143,814 6,588,407 6,588,407
Economic environment 2,385,498 2,734,209 757,118 1,105,829 1,105,829
Health and human services 421,691 14,485 26,401 (380,805) (380,805)
Culture and recreation 8,224,089 1,837,526 (6,386,563) (6,386,563)
Interest on long term debt 315,141 (315,141) (315,141)
Total Governmental Activities 51,479,616 13,291,505 1,043,190 16,143,814 (21,001,107) - (21,001,107)
Business-type Activities:
Water 6,748,359 7,241,268 252,759 1,783,556 2,529,224 2,529,224
Sewer 7,434,507 6,776,798 2,526,129 1,868,420 1,868,420
Process Water Reuse 1,184,723 1,862,613 485,365 1,163,255 1,163,255
Storm Water 1,028,285 1,154,235 8,152 134,102 134,102
Irrigation 1,098,632 1,008,978 151,140 790,639 852,125 852,125
Total Business-Type Activities 17,494,506 18,043,892 412,051 5,585,689 6,547,126 6,547,126
Total Primary Government S 68,974,122 $ 31,335,397 $ 1,455,241 $ 21,729,503 (21,001,107) 6,547,126 (14,453,981)
General Revenues:
Taxes:
Property taxes 6,658,637 6,658,637
Sales taxes 10,283,925 10,283,925
B&O taxes 8,843,168 8,843,168
Excise taxes 2,046,283 2,046,283
Intergovemrental 3,160,798 3,160,798
Investment income and miscellaneous 1,485,772 32,875 1,518,647
Transfers 3,438,576 (3,438,576) -
Total general revenues 35,917,159 (3,405,701) 32,511,458
Change in Net Position 14,916,052 3,141,425 18,057,477
Net Position Beginning 175,280,738 141,898,306 317,179,044
Net Position Ending $ 190,196,790 $ 145,039,731 $ 335,236,521
The notes to the financial statements are an integral part of this statement.
27
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Balance Sheet
Governmental Funds
December 31,2012
Other
General Governmental mental Total
ASSETS
Cash and cash equivalents $ 4,139,137 $ 14,576,365 $ 18,715,502
Restricted cash-customer deposits 239,100 11,691 250,791
Customer deposits
Bi-centenial celebration 6,264 6,264
Investments 2,504,052 1,000,000 3,504,052
Receivables(net of allowances):
Taxes 1,875,565 240,910 2,116,475
Customers 1,338,834 352,154 1,690,988
Interfund loans 1,362,939 689,000 2,051,939
Grants 22,435 255,146 277,581
Special assessments&loans 668,103 668,103
Total assets 11,488,326 17,793,369 29,281,695
LIABILITIES
Accounts payable 305,297 944,393 1,249,690
Interfimd loans payable 2,337,334 2,337,334
Due to other governments 30,297 138 30,435
Customer deposits 239,100 11,691 250,791
Total liabilities 574,694 3,293,556 3,868,250
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,371,064 750,542 2,121,606
FUND BALANCES
Nompendable 418,181 418,181
Cemetery permanent fiord
Restricted
Bi-centennial celebration 6,264 6,264
Street and boulevard 6,489,219 6,489,219
Litter&housing abatement 288,372 288,372
Park development 1,739,296 1,739,296
Capital improvements 2,259,281 2,259,281
Economic development 220,870 220,870
Geneneral obligation debt 336,639 336,639
Special assessment debt 239,685 239,685
Committed
Landfill claims 401,091 401,091
Special revenue funds 1,117,201 1,117,201
Construction projects 1,033,326 1,033,326
Debt guarantee 860,575 860,575
Assigned -
2013 budget appropriation 2,871,512 2,871,512
Unassigned 6,263,701 (1,253,374) 5,010,327
Total fiord balances 9,542,568 13,749,271 23,291,839
Total liabilities,deferred inflows of resources
and fund balances $ 11,488,326 $ 17,793,369
Amounts reported for governmental activities in the statements of net position
are different because:
Long-term assets used in governmental activities are not financial resources and
therefore are not reported in the government fiords. 168,352,573
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 exisking
debts are recorded as resources and expenditures for fund reporting but are additions
and reductions of liabilities for government wide reporting. (8,893,050)
Other long-term assests are not available to pay for current period expenditures and,
therefore,are deferred in the fiords. 1,918,331
Internal Service fiords are used by management to charge the costs of certain
activities to individual fiords. The assets and liabilities of some internal service fiords
are included in the governmental activities in the statement of net position 5,527,097
Net position of governmental activities(see page 26) $ 190,196,790
The notes to the financial statements are an integral part of this statement.
28
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Statement of Revenues,Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31,2012
General Other
Fund Governmental Total
REVENUES
Taxes $ 24,846,828 $ 3,170,469 $ 28,017,297
Licenses and permits 1,571,850 289,571 1,861,421
Intergovernmental revenue 1,838,746 3,062,210 4,900,956
Charges for services 4,125,398 5,383,570 9,508,968
Fines and forfeitures 849,631 41,896 891,527
Miscellaneous revenue 783,492 1,983,621 2,767,113
Total revenues 34,015,945 13,931,337 47,947,282
EXPENDITURES
Current:
General govemnient 6,380,710 6,380,710
Public safety 16,766,090 3,224,078 19,990,168
Physical environment 1,721,040 1,125,216 2,846,256
Transportation 2,890,179 2,890,179
Economic environment 1,187,214 949,356 2,136,570
Health and human services 18,614 357,800 376,414
Culture and recreation 4,070,144 2,736,777 6,806,921
Capital outlay.
General government 193,179 193,179
Public safety 56,861 591,563 648,424
Physical environment 7,153 7,153
Transportation 3,140,768 3,140,768
Economic environment 1,526,881 1,526,881
Culture and recreation 184,912 184,912
Debt service:
Principal 2,132,463 1,175,371 3,307,834
Interest 180,056 135,085 315,141
Total expenditures 32,713,524 18,037,986 50,751,510
Excess of revenues over(under)expenditures 1,302,421 (4,106,649) (2,804,228)
OTHER FINANCING SOURCES(USES)
Transfers in 539,090 5,895,208 6,434,298
Transfers out (3,563,677) (3,126,056) (6,689,733)
Total other financing sources(uses) (3,024,587) 2,769,152 (255,435)
Net change in fund balances (1,722,166) (1,337,497) (3,059,663)
Fund balances-beginning 11,264,734 15,086,768 26,351,502
Fund balances-ending $ 9,542,568 $ 13,749,271 $ 23,291,839
The notes to the financial statements are an integral part of this statement.
29
City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
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 31,2012
Net change in fund balances-total governmental fiords $ (3,059,663)
Amounts reported for governmental activities in the Statement of Activities are
different because of the following reconciling items:
Governmental funds report capital outlays as expenditures. However,in the statement
of net position they are reported net of depreciation as a capital asset. This is the
amount by which capital outlays exceeded depreciation in the current period. (600,406)
The statement of net position shows a decrease in joint ventures not reported in the funds. (42,690)
The issuance of long-term debt(e.g.bonds,notes)provides current financial resources to
governmental fiords,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. 3,087,926
Revenues reported in the statement of activies that do not provide current financial resources
are not reported as revenues in the fiords. 15,390,117
Some expenses such as for compensated absences and loss on disposal of assets reported in
the statement of net activities do not the use of current financial resources and,therefore,are not (363,675)
reported as expenditures in the governmental funds.
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of internal service fiords is reported with governmental
activities. This amount comes from the Combining Statement of Revenues,Expenditures
and Changes in Net Fund Assets for Internal Service Funds,Net Operating Income. 504,443
Change in net position of governmental activities(see page 27) $ 14,916,052
The notes to the financial statements are an integral part of this statement.
30
City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
Statement of Revenues,Expenditures, and Changes in Fund Balances-Budget to Actual
General Fund
For the Year Ended December 31,2012
Original Final Variance to
Budget Budget Actual Final Budget
REVENUES
Taxes $ 23,251,660 $ 24,462,664 $ 24,846,828 $ 384,164
Licenses and permits 1,093,700 1,443,700 1,571,850 128,150
Intergovernmental revenue 1,679,700 1,882,700 1,838,746 (43,954)
Charges for services 4,531,330 4,531,330 4,125,398 (405,932)
Fines and forfeitures 977,200 977,200 849,631 (127,569)
Miscellaneous revenue 673,246 673,246 783,492 110,246
Total revenues 32,206,836 33,970,840 34,015,945 45,105
EXPENDITURES
Current:
General government 6,800,926 6,874,235 6,380,710 493,525
Public safety 16,152,117 16,294,393 16,766,090 (471,697)
Physical environment 1,806,927 1,817,969 1,721,040 96,929
Economic environment 1,199,712 1,208,879 1,187,214 21,665
Health and human services 15,000 15,000 18,614 (3,614)
Culture and recreation 4,031,237 4,107,443 4,070,144 37,299
Capital outlay:
General government 405,000 93,000 193,179 (100,179)
Public safety 11,700 11,700 56,861 (45,161)
Physical environment 7,153 (7,153)
Debt service:
Principal 2,132,463 2,132,463 2,132,463 -
Interest 212,755 212,755 180,056 32,699
Total expenditures 32,767,837 32,767,837 32,713,524 54,313
Excess of revenues over(under)expenditures (561,001) 1,203,003 1,302,421 99,418
OTHER FINANCING SOURCES(USES)
Transfers in 539,090 539,090 539,090 -
Transfers out (2,784,330) (4,135,387) (3,563,677) 571,710
Total other financing uses (2,245,240) (3,596,297) (3,024,587) 571,710
Net change in fimd balances (2,806,241) (2,393,294) (1,722,166) 671,128
Fund balances-beginning 11,258,472 11,258,472 11,264,734 6,262
Fund balances-ending $ 8,452,231 $ 8,865,178 $ 9,542,568 $ 677,390
The notes to the financial statements are an integral part of this statement.
31
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Statement of Net Position
Proprietary Funds
December 31,2012
Water/Sewer Internal
Utility Service
ASSETS
Current assets:
Cash and cash equivalents $ 5,726,048 $ 7,068,173
Restricted cash equivalents: -
Customer deposits 561,657
Unspent bond proceeds 1,005,365
Revenue bond covenants 3,316,293
Investments 2,000,000
Receivables(net of allowances):
Customers 881,264 -
Interfund loans-current portion 43,890
Grants 40,418 -
Inventory 317,348 -
Total current assets 13,848,393 7,112,063
Noncurrent assets:
Restricted cash equivalents 410,000
Special assessments 608,241 -
Inter and loan 241,504
Capital assets not being depreciated: -
Land 2,494,425 -
Construction work inprogress 15,512,175 435,160
Capital assets net of accumulated depreciation:
Buildings and structures 31,975,044 -
Machinery and equipment 1,040,048 3,270,747
Infrastructure 114,357,869 -
Total noncurrent assets 166,397,802 3,947,411
Total assets 180,246,195 11,059,474
LIABILITIES
Current liabilities:
Accounts payable 618,386 580,359
Due to other governments 3,173 -
Other liabilities
Customer deposits payable 561,657
Accrued interest payable 639,468
Compensated absences-current portion 55,378 5,766
Loans due other governments-current portion 1,621,743
Revenue bonds-current portion 2,035,000
Total current liabilities 5,534,805 586,125
Noncurrent liabilities:
Compensated absences 384,639 14,154
Loans due other governments 10,333,849
Revenue bonds payable 22,225,000
Total noncurrent liabilities 32,943,488 14,154
Total liabilities 38,478,293 600,279
NET POSITION
Net investment in capital assets 129,163,969 3,705,907
Unrestricted 12,603,933 6,753,288
Total net position 141,767,902 $10,459,195
Adjustment to reflect the consolidation of internal
service fund activity related to proprietary funds 3,271,829
Net position of business-type activities(see page 26) $ 145,039,731
The notes are an integral part of this statement.
32
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
December 31, 2012
Water/Sewer Internal
Utility Service
OPERATING REVENUES
Charges for services $ 17,816,199
Miscellaneous 176,880 6,861,218
Total operating revenues 17,993,079 6,861,218
OPERATING EXPENSES
Depreciation 5,151,867 684,718
Salaries and wages 2,516,966 265,478
Personnel benefits 967,894 91,650
Supplies 876,218 943,383
Services 2,313,257 4,523,247
Intergovernmental 2,326,614
Interfimd services 2,231,719
Total operating expenses 16,384,535 6,508,476
OPERATING INCOME(LOSS) 1,608,544 352,742
NONOPERATING REVENUES(EXPENSES)
Interest income 32,875 21,269
Rents and leases 50,813
Gain on sale of capital assets 4,965
Interest expense (1,419,504)
Total nonoperating revenues(expenses) (1,335,816) 26,234
Income(loss)before contributions,
special item and transfers 272,728 378,976
Capital contributions 5,997,740
Special item (3,259,011)
Transfers in 435,000
Transfers out (179,565)
Changes in net position 2,831,892 813,976
Net position-beginning 138,936,010 9,645,219
Net position-ending $ 141,767,902 $ 10,459,195
Changes in net position per above $ 2,831,892
Adjustment to reflect the consolidation of internal
service fund activity related to Proprietary fiords $ 309,533
Change in net position of business-type activities
(see page 27) $ 3,141,425
The notes to the financial statements are an integral part of this statement.
33
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31,2012
Water/Sewer Internal
Utility Service
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers $ 18,248,068 $ 6,861,218
Payments to employees (3,429,483) (357,128)
Payments to suppliers (3,310,662) (5,469,184)
Payments to other governments (2,323,567)
Payments to other funds (2,231,719) -
Net cash provided by operating activities 6,952,637 1,034,906
CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from sale of assets 1,457,448 5,587
Acquisition of capital assets (3,596,303) (894,314)
Principal paid on debt (3,555,357)
Interest paid on debt (1,476,836)
Payments received from notes and loans 177,990 -
Transfers in(out)for capital (179,565) 435,000
Capital charges 2,255,814 -
Capital grant and contribution proceeds (40,418)
Net cash used by capital and related financing activities (4,957,227) (453,727)
CASH FLOWS FROM INVESTING ACTIVITIES
Investments sold and earnings 32,875 21,269
hrterfund loan repayment - 32,288
Net cash provided from investing activities 32,875 53,557
Net increase in cash&cash equivalents 2,028,285 634,736
Beginning cash&cash equivalents 8,991,078 6,433,437
Ending cash&cash equivalents $ 11,019,363 $ 7,068,173
NON CASH ACTIVITIES
Capital contributions 3,741,926 -
Total noncashactivities $ 3,741,926 $
RECONCILATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net Operating Income $ 1,608,544 $ 352,742
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES
Depreciation 5,151,867 684,718
Rents and leases 50,813
Changes in assets and liabilities
Increase in customer and other receivables 210,573 -
Decrease in inventories 60,107
Decrease in accounts payable and other liabilities (181,294) (2,554)
Increase in due other governments 3,047
Decrease in customer deposits owing (6,397)
Increase in compensated absences 55,377
Net cash provide by operating activities S 6,952,637 $ 1,034,906
The notes to the financial statements are an integral part of this statement.
34
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Statement of Net Position
Fiduciary Funds
December 31, 2012
Pension and Other
Postemployment
Benefits Agency
ASSETS
Cash&cash equivalents $ 600,898 $ 453,103
Investments(at fair market value):
LID Note 75,014
Federal Agency 99,690
Mutual Funds 3,114,268
Total assets 3,889,870 453,103
LIABILITIES
Accounts payable 6,666 308,142
Due to others 144,961
Total liabilities 6,666 453,103
NET POSITION
Held in trust for pension benefits/other post
employment benefits $ 3,883,204
The notes to the financial statements are an integral part of this statement.
35
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Statement of Changes in Net Position
Fiduciary Funds
For the year ended December 31, 2012
Pension and Other
P ostemployment
Benefits
ADDITIONS
Taxes $ 42,979
Investment earnings:
Interest 10,432
Dividends 89,962
Net increase in market value of investments 288,529
Total Additions 431,902
DEDUCTIONS
Pension benefits 92,890
Medical premiums 110,004
Administrative expenses 2,800
Total deductions 205,694
Change in net position 226,208
Net position-beginning 3,656,996
Net position-ending $ 3,883,204
The notes to the financial statements are an integral part of this statement.
36
City of Pasco, 'WashiAgton 2012 Comprehensive AnnualginanciaCAeport
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 position 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
37
City of Pasco, 'WashjMton 2012 Comprehensive AnnualginanciaCAeport
identifiable with a specific function or segment. Our policy is to not allocate indirect costs to
a specific function or segment. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function or segment and 2) grants and contributions that are restricted to meeting
the operational or capital requirements for a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general
revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement focus, basis of accounting, and financial statement presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. 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 31 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. General capital asset acquisitions are
reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions
under capital leases are reported as other financing sources.
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.
Entitlements, such as grants, are recorded as revenues when all eligibility requirements are
met, including any time requirements, and the amount is received during the period or within
the availability period for this revenue source (within 60 days of year-end). 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.
38
City of Pasco, "Washington 2012 Comprehensive AnnualginancialReport
The proprietary, pension and other postemployment benefit trust funds are reported using the
economic resources measurement focus and the accrual basis of accounting for reporting its
assets and liabilities.
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.
The City reports the Water/Sewer fund as a major proprietary fund. This fund includes water,
sewer, process water reuse, stormwater and irrigation systems.
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.
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.
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City of Pasco, "Washington 2012 Comprehensive .2lnnualginancialReport
Internally dedicated resources are reported as general revenues rather than as program
revenues. General revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Water/Sewer Fund are charges to customers. The major
services provided by the proprietary fund are water, sewer, storm drain, irrigation and
industrial waste water processing. Operating expenses for enterprise funds and internal
service funds include the cost of sales and services, administrative expenses, and depreciation
on capital assets. All revenues and expenses not meeting this definition are reported as non-
operating revenues and expenses.
D. Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance
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 value for the items
held. In the pension fund mutual fund investments are reported at fair 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".
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.
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City of Pasco, "Washington 2012 Comprehensive AnnualginancialReport
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 51% of the outstanding receivable at December 31,
2012.
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, 2012 $41,661 of Governmental and $10,788 of Business-
type special assessments were delinquent. Assessed property owners are responsible for
debt repayment. The city guarantee's the debt to the extent of the LID guarantee fund.
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.
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City of Pasco, "Washington 2012 Comprehensive .2lnnualginanciaCAeport
S. 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 depreciation 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 2012.
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 fiends, 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.
Upon resignation, retirement or death sick leave is payable at a rate of 25% of accrued
hours up to a maximum accrual base of 720 hours. 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, 'WashiAgton 2012 Comprehensive AnnualginancialReport
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 position.
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 ou�flows/inflows of resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a
future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then.
In addition to liabilities, the statement of financial position will sometimes report a
separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that
applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time. The city has only one type of item, which arises only under a
modified accrual basis of accounting, which qualifies for reporting in the category.
Accordingly, the item, unavailable revenue is reported only in the governmental funds
balance sheet. The governmental funds report unavailable revenues for 2012 as follows:
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. Rain checks and gift certificates issued by the golf course and certain headstones and
liner sales by the cemetery which obligate the city to future services.
9. Fund balance and fund flow policies
Fund balance of governmental funds is reported in various categories based on the nature
of any limitations requiring the use of resources for specific purposes. The government
itself can establish limitations on the use of resources through either a commitment
(committed fund balance) or an assignment (assigned fund balance).
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City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
The committed fund balance classification includes amounts that can be used only for
specific purposes determine by formal action of the government's highest level of
decision-making authority. The city council is the highest level of decision making
authority for the government that can, by adoption of an ordinance prior to the end of the
fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance
remains in place until a similar action is taken (the adoption of another ordinance) to
remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the
government for specific purposes but do not meet the criteria to be classified as
committed. The council may also assign fund balance as it does when appropriating fund
balance to cover a gap between estimated revenue and appropriations in the subsequent
year's appropriated budget. Unlike commitments, assignments generally only exist
temporarily. In other words, an additional action does not normally have to be taken for
the removal of an assignment. Conversely, as discussed above, an additional action is
essential to either remove or revise a commitment.
The City has not adopted a specific flow of funds policy relating to the use of restricted
and unrestricted resources when both are available. Therefore the statements are prepared
using the default option provided in GASB 54 which provides that when both restricted
and unrestricted resources are available,restricted resources are used first.
In the fund financial statements, governmental funds report restrictions of fund balance as
follows:
Nonspendable fund balance - includes amounts that are not in spendable form such as
inventory or are required to be maintained intact such as the principal of a permanent
fund.
Restricted fund balance- includes amounts that can be spent only for the specific purpose
stipulated by external resource providers such as for grant providers, bondholders, higher
levels of government, or through enabling legislation.
Committed fund balance — includes amounts that can be used only for the specific
purposes determined by a formal action of the city council. Commitments may be
changed or lifted only by the City Council taking the same formal action that imposed the
constraint originally.
Assigned fund balance — includes amounts intended to be used by the government for
specific purposes. Intent can be expressed by the governing body or by an official
designated by the governing body to which the governing body designates authority.
Unassigned fund balance - includes amounts that are available for any purpose.
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City of Pasco, Washington 2012 Comprehensive .2lnnualginanciaCAeport
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 position.
The governmental fund balance sheets includes a reconciliation between fund balance —
total governmental funds and net position — governmental activities as reported in the
government-wide statement of net position. One element of that reconciliation explains
that "Long-term 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 $ 213,036
Land 7,551,136
Construction in process 5,648,301
Building 25,458,664
Other improvements 5,074,383
Equipment 3,936,294
Infrastructure 102,610,403
Prior period adjustment 3,217,005
Current year spending in construction work in progress 4,043,338
Current year capital purchases 150,238
Current year capital donations received 15,446,847
Current year assets transferred from Water/Sewer Utility 4,766,751
Current year decrease in joint venture (42,690)
Current year capital asset disposals (160,399)
Current year depreciation (9,560,734)
Net adjustment to add to government-wide fund balance to arrive at
Net position-governmental activities $ 168,352,573
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 $ (1,738,622)
OPEB obligation (1,149,251)
Bonds and notes payable (8,781,906)
Current year principal payments reducing debt 3,307,834
Current year OPEB and other expense recognized (531,105)
Net adjustment to reduce government-wide fund balance to arrive at
Net position-governmental activities $ (8,893,050)
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City of Pasco, 'WashiAgton 2012 Comprehensive AnnualginanciaCAeport
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 position 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
resources are not reported as revenues in the funds." $15,446,847 of this amount is due
capital assets contributed to the City.
NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary information
Scope of budget
Annual revenue and appropriated expenditure 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.
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City of Pasco, "Washington 2012 Comprehensive AnnualginancialReport
• 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
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. Deficit fund equity
The LID Note fund, Community Development and Stadium/Conventions center funds
showed deficit fund equity positions at December 31, 2012. This is expected and normal
since the debt related to these funds 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. Cash balances were positive for these funds at the end of the
year. If the financing was external, then no fund deficit would exist.
C. Budgetary compliance
The Special Lodging Assessment fund exceeded its total budgetary authority in 2012 by
$4,668. This was primarily due to December actual expenses being higher than
estimated/budgeted and there were no more scheduled council meetings to approve
expenditures prior to the end of the year.
NOTE 4—DETAILED NOTES ON ALL FUNDS
A. Deposits, investments and restricted assets
As of December 31, 2012 the government had the following:
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City of Pasco, 'WashiAgton 2012 Comprehensive .2lnnualginanciaCAeport
Weighted Average
Fair Value Maturities (Years)
Local Government Investment Pool
Total Invested Cash Equivalents $31,006,253 N/A
Investments in Federal Agencies 2,603,742 4.17
Investment in Mutual Funds 3,114,268 N/A
Investment in Certificate of Deposits 3,000,000 1.13
Investment in Notes 75,014 8.38
Total fair value $39,799,277
Portfolio weighted average maturity 2.54
Interest rate risk. Interest rate risk is the risk that changes in interest rates will adversely affect
the fair value of an investment. In accordance with its investment policy, the City manages its
exposure to declines in fair value by limiting the maturity of investments. Investments over one
year require the City Manager's approval. In addition, to achieve its financial objective of
maintaining liquidity to meet all operating requirements, the City typically selects investments
that have shorter average maturities. The city's investment policy does not specifically address
interest rate risk.
Credit risk. Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations. The city investment 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
(LGIP). The investment policy for"credit risk" does not extend beyond the types of authorized
investments and the concentration of credit risk described below. As of December 31, 2011 the
City's investments in agency securities were all rated AAA. The LGIP is not registered with the
SEC and the fair value of the city's position in the pool is the same as the value of the pool
shares. The LGIP is regulated by the state of Washington's state finance committee. Credit risk
is limited as most investments are either obligations of the U.S. Government, government
sponsored enterprises, insured demand deposit accounts or certificates of deposit.
Concentration of credit risk. Concentration of credit risk is the risk of loss attributed to the
magnitude of a government's investment in a single issuer. 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.
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City of Pasco, 'Washington 2012 Comprehensive .2lnnualginancialReport
Concentration of credit risk as a percentage of total investments:
Issuer % of Total Fair Value
Federal Farm Credit Bank 5.0% 2,000,000
Small Business Administration 1.5% 603,742
US Bank 7.5% 3,000,000
Local Gov't Investment Pool 77.9% 31,006,253
City of Pasco LID 0.2% 75,014
American Funds 7.8% 3,114,268
100.0% 39,799,277
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 $7,736,590 on deposit with US
Bank on December 31, 2012. The FDIC insures those deposits up to $250,000. US Bank is
required to collateralize 10% of the remaining funds which is $773,659. The temporary custodial
credit risk for uncollateralized deposits at US Bank was $6,962,931 at December 31, 2012.
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 prior year for construction projects which were
not fully expended by the end of the current 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:
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City of Pasco, 'WashiAgton 2012 Comprehensive AnnualginanciaCAeport
Temporary Permanent
Restrictions Restrictions
City View Cemetery Endowment $400,067
Water/Sewer Debt Service account $3,316,292
Water/Sewer Debt Reserve account 410,000
Water/Sewer Bond Proceeds 1,005,365
Bi-centennial contribution 6,264
Water/Sewer Customer Deposits 561,657
Governmental Funds Customer Deposits 250,790
Water/Sewer Special Assess Receivable 608,241
Governmental Special Assess Receivable 668,103
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.
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, 2012. 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 $322,756
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:
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City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
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 2011, the City approved an ordinance establishing the operating levy for 2012 of
$6,112,398 based on an assessed valuation of$3,102,662,066 and an estimated rate of$1.970005
per $1,000 of assessed value. In November 2012, the City approved an ordinance establishing the
operating levy for 2013 of$6,492,514 based on an assessed valuation of$3,300,400,919 and an
estimated rate of$1.96719 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 ($61,106); the 1999 UTGO bond for the Fire Station($77,394) and
for the 2002 UTGO Refunding bonds ($379,600).
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, 2012 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
$189,523.
Special assessments and unavialable revenue. Governmental funds report unavailable revenue
in connection with receivables for revenues that are not considered to be available to liquidate
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City of Pasco, 'WashiAgton 2012 Comprehensive AnnualginancialReport
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:
Unavailable Revenue—Property Taxes $ 322,756
Unavailable Revenue—Special Assess/Loans 668,104
Unavailable Revenue—Municipal Court 1,071,334
Unavailable Revenue—Other _59,412
Total 2 121 606
Loans receivable. Loans receivables 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 loans 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, 2012 was as follows:
Beginning Current Period Current Period Ending Balance
Governmental Activities: Balance 01/01/12 Increases Decreases 12/31/12
Capital assets,not being depreciated
Land 7,551,136 4,922,852 20,000 12,453,988
Construction in process 5,648,301 4,917,581 2,872,686 7,693,195
Total capital assets,not being depreciated 13,199,437 9,840,433 2,892,686 20,147,183
Capital assets,being depreciated:
Building&structure 37,360,011 981,118 140,399 38,200,730
Other improvements 8,995,965 245,265 361 9,240,869
Machinery and equipment 9,376,566 749,594 236,018 9,890,142
Infrastructure 150,304,215 16,338,315 166,642,530
Total capital assets being depreciated 206,036,757 18,314,292 376,778 223,974,271
Less accumulated depreciation:
Building&structure 11,901,347 1,278,163 13,179,510
Other improvements 3,921,582 684,701 361 4,605,922
Machinery and equipment 5,440,894 753,067 236,018 5,957,943
Infrastructure 44,476,807 6,844,803 51,321,610
Total accumulated depreciation 65,740,630 9,560,734 236,379 75,064,985
Total capital assets,being depreciated,net 140,296,127 8,753,558 140,399 148,909,286
Governmental activities capital assets net $ 153,495,564 $ 18,593,991 $ 3,033,085 $ 169,056,469
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City of Pasco, 'Washington 2012 Comprehensive AnnualginancialReport
Beginning Current Period Current Period Ending Balance
Business Type Activities: Balance 01/01/12 Increases Decreases 12/31/12
Capital assets,not being depreciated
Land $ 6,598,676 $ 105,394 $ 4,209,645 $ 2,494,425
Construction in process 13,899,412 3,596,303 1,983,540 15,512,175
Total capital assets,not being depreciated 20,498,088 3,701,697 6,193,185 18,006,600
Capital assets,being depreciated:
Building&structure 64,900,003 741,579 557,729 65,083,853
Machinery and equipment 5,159,693 174,253 1,242,998 4,090,948
Infrastructure 138,871,330 4,724,311 0 143,595,641
Total capital assets being depreciated 208,931,026 5,640,143 1,800,727 212,770,442
Less accumulated depreciation:
Building&structure 30,780,487 2,328,946 624 33,108,809
Machinery and equipment 2,770,323 366,794 1,242,998 1,894,119
Infrastructure 26,525,667 2,712,105 0 29,237,772
Total accumulated depreciation 60,076,477 5,407,845 1,243,622 64,240,700
Total capital assets,being depreciated,net 148,854,549 232,298 557,105 148,529,742
Business activities capital assets net $ 169,352,637 $ 3,933,995 $ 6,750,290 $ 166,536,342
Depreciation expense by function:
Governmental activities:
General government $ 360,488
Public Safety 304,674
Physical environment 147,846
Transportation 7,033,055
Economic environment 249,629
Health&human services 45,277
Culture&recreation 1,419,765
Total depreciation expense-governmental activities $ 9,560,734
Business-type activities:
Water $ 1,658,303
Sewer 2,918,339
Process water reuse facility 175,095
Storruwater 224,465
Irrigation 431,643
Total depreciation expense-business-type activities: $ 5,407,845
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City of Pasco, 'Washington 2012 Comprehensive .2lnnualginancialReport
Construction commitments
The City of Pasco has active construction projects as of December 31, 2012. The projects include
street construction and various utility constructions. At year end, the city's commitments with
contractors are as follows:
Project Spent to Date Remaining
Commitment
Streets $4,454,502 $ 547,096
General 176,413 43,879
Water 182,967 513,695
Sewer 1,873,060 104,869
Reuse 318,596 345,612
Stormwater 525 633
Irrigation 292,613 76,787
Total $7,298,676 $1,632,571
D. Interfund loans receivable,payable and transfers
Interfund loans
The composition of interfund loan balances as of December 31, 2012 is as follows:
Interfund Loan Loan Loan Interfund Loan Due in More
Receivable Purpose Amount Payable Than 1 Year
General Fund Fund Asset Purchase 984,000 Nonmajor Special Revenue 472,404
General Fund Temp Cash Flow 378,939 Nonmajor Debt Service Fund -
Nonmajor Special Revenue External Debt Refinance 689,000 Nonmajor Special Revenue 582,482
Internal Service Fund Investment in LID 285,394 Nonmajor Debt Service Fund 241,501
Interfund transfers
Transfers between funds during the year ended December 31, 2012 are as follows:
TRANSFER FROM
Nonmajor Nonmajor Nonmajor
General Utility Total
Special Debt Construction
T General $ - $ 539,091 $ $ - $ $ 539,091
R
A
N Nonmajor Special Revenue 2,014,000 50,000 255,087 4,715,672 7,034,759
S
F Nonmajor Construction 1,182,677 1,834,939 378,939 - 179,565 3,576,121
E
R Internal Service 367,000 68,000 - - - 435,000
T
O Total $ 3,563,677 $ 2,492,030 $ 378,939 $ 255,087 $ 4,895,237 $ 11,584,971
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City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
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 law.
The Water/Sewer Utility fund transferred the Farm System assets out of the utility into the
Economic Development Fund. As this transfer was under management's control and infrequent
in occurrence the loss on the transactions was recorded as a Special Item on the Water/Sewer
Utility statement of Revenues, Expenses and Changes in Net Assets. Transfers of assets from a
Business-Type activity to a Governmental-Type activity are treated as transfers at the
government-wide reporting level. The Farm System, while providing a wastewater disposal
location for the Process Water Reuse Facility system, is an independent operating system that
has been self-sustaining from its creation. Since the Farm System land was originally included in
the Water/Sewer revenue bond financing, it has previously been recorded as part of the
Water/Sewer Utility. Farm revenues were used to repay the debt. Per revenue bond covenants,
assets may be removed from the utility in exchange for a prescribed amount of cash and those
cash proceeds must be used to redeem Water/Sewer revenue bond debt at the earliest available
opportunity. Accordingly, the Economic Development fund transferred $1,507,741 (per bond
covenants) of cash to the Water/Sewer utility in exchange for $4,715,672 of net assets. Those
proceeds were used to redeem debt on April 1, 2013.
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
vehicles. New vehicles and leases are then acquired. The following represents the future
minimum lease payments:
55
City of Pasco, WashiAgton 2012 Comprehensive .2lnnualginancialReport
Year Ending December 31 1 Amount
2013 $5,717
2014 11,984
2015 11,674
2016 7,432
Total $36,808
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. The net pension obligation is generally
liquidated by the Fire Pension Trust Fund and the net OPEB obligation is also generally
liquidated by the general fund.
Long-term liability activity for the year ended December 31, 2012 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
GOVERNMENTAL ACTIVITIES
General obligation bonds $ 7,670,000 $ $ (2,960,000) $ 4,710,000 $ 875,000
Special Assessment Bond 569,351 - (174,337) 395,014 7,995
External Loans&Notes 542,551 - (173,495) 369,056 151,149
Compensated absences 1,738,622 1,636,578 (1,448,095) 1,927,105 188,483
Net OPEB obligation 1,149,251 1,077,003 (531,105) 1,695,149 531,105
Governmental activity long-term liabilities T$11,669,775 $ 2,713,581 1 $ (5,287,032)1 $ 9,096,324 1 $1,753,732
BUSINESS ACTIVITIES
Revenue bonds 26,240,000 - (1,980,000) 24,260,000 2,035,000
External Loans&Notes 13,530,949 - (1,575,332) 11,955,617 1,621,743
Compensated absences 387,753 425,618 (368,049) 445,322 57,569
Business activity long-term liabilities $40,158,702 $ 425,618 1 $ (3,923,381)1 $ 36,660,939 1 $3,714,312
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 fund 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 2012 Comprehensive AnnualginanciaCAeport
GENERAL OBLIGATION BONDS
MATURITY I INTEREST ORIGINAL INSTALLMENT
PURPOSE RANGE RATE RANGE AMOUNT 2013 AMOUNT
1999 LTGO Library and Fire Station 2011-2019 5.25%-5.60% $ 1,700,000 $ 138,500
2002 Qvic Center 2011-2013 4.00%-4.00% 3,155,000 379,600
2011 LTGO Refund 2001 LTGO 2011-2020 2.00%-4.00% 4,110,000 534,650
YEARENDING GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
DECEMBER 31 PRINCIPAL I INTEREST PRINCIPAL INTEREST
2013 875,000 177,750
2014 520,000 149,600
2015 530,000 131,600
2016 545,000 113,250
2017 560,000 94,400
2018-2022 1,680,000 136,600
TOTAL $ 4,710,000 1 $ 803,200 1$ $
SPECIAL ASSESSMENT BONDS
MATURITY INTEREST ORIGINAL INSTALLMENT
PURPOSE RANGE RATE RANGE AMOUNT 2013 AMOUNT
LID 145 A Street Improvments 2012-2020 2.25%-5.00% $ 785,129 $ 14,800
LID 146 Kurtzman hprovments 2013-2021 4.10% $ 89,351 $ 11,071
YEAR ENDING GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
DECEMBER 31 PRINCIPAL I INTEREST PRINCIPAL INTEREST
2013 $ 7,995 $ 17,876
2014 $ 8,323 $ 17,548
2015 $ 8,665 $ 17,207
2016 $ 9,020 $ 16,851
2017 $ 89,390 $ 16,481
2018-2022 271,621 25,915
TOTAL 1 $ 395,014 1 $ 111,878 1 $ - I $ -
REVENUEBONDS
MATURITY I INTEREST ORIGINAL INSTALLMENT
PURPOSE RANGE RATE RANGE I AMOUNT 2013 AMOUNT
2002 Water/Sewer 2011-2022 3.50%-4.70% 5,945,000 433,850
2005 Water/Sewer 2011-2025 4.00%-1.25% 4,400,000 319,792
2007 Water/Sewer ULID 2011-2022 4.25%-4.75% 845,000 64,963
2009 Water/Sewer 2011-2029 3.00%-4.75% 10,045,000 772,575
2010 A Ref 1998B Plus New 2011-2029 3.00%-4.370% 9,070,000 1,241,925
2010 T Ref 1998A 2018 4.62% 1,240,000 186,659
YEARENDING GOVERNMENTAL ACTIVITIES I
BUSINESS-TYPEACTNIIIES
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2013 $ 2,035,000 $ 984,764
2014 2,105,000 912,144
2015 1,415,000 845,214
2016 1,425,000 789,888
2017 1,530,000 731,181
2018-2022 7,320,000 2,717,723
2023-2027 6,220,000 1,184,501
2028-2032 2,210,000 108,094
2033-2039 - -
TOTAL I $ $ $ 24,260,000 $ 8,273,509
BUERNAL LOANS
INTEREST ORIGINAL INSTALLMENT
PURPOSE MATURITY RATE AMOUNT 2013 AMOUNT
2002 Animal Control Facililty Land 12/1/2016 6.24% $ 275,500 $ 24,750
2009 Police Vehicle Computers 6/1/2013 3.47% 194,051 $ 26,934
2006 Port Airport Fire Building 7/12/2016 4.00% 120,000 14,580
1998TRACLoan 12/1/2014 4.505-5.50% 1,197,931 102,436
Waste Water Polution Control Facilities PNTF 95-025 6/30/2015 1.00% 812,700 44,302
West Pasco Water System PWTF 95-026 6/30/2015 1.00% 2,687,300 110,597
Rverview Trunk/SESewer 6/30/2020 1.00% 1,890,000 120,032
Sewer Treatment Pant Phase 1&2 SRF Loan 10/13/2015 1.00% 23,700,000 1,719,955
YEAR ENDING GOVERNMENTALACTIVTIES BUSINESS-TYPEACTNIIIES
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2013 $ 151,149 $ 17,549 $ 1,621,743 $ 373,140
2014 $ 136,626 $ 10,881 1,669,767 322,502
2015 $ 43,210 $ 3,864 1,719,487 270,166
2016 $ 38,071 $ 1,503 1,620,576 216,076
2017 $ - $ 1 1,673,869 161,673
2018-2022 $ - $ - 3,650,175 154,279
TOTAL $ 369,056 1 $ 33,798 1 $ 11,955,617 1 $ 1,497,836
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City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
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. Effective January 2011 City of Pasco
coverage changed to a $100,000 per incident deductible from a no deductible policy.
Coverage includes general, automobile, police professional, public officials' errors and
omissions, stop gap, and employee benefits liability. WCIA 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.
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City of Pasco, 'Washington 2012 Comprehensive AnnualginancialReport
WCIA is fully funded by its members, who make annual assessments on a prospectively rated
basis, as determined by an outside, independent actuary. The assessment covers loss, loss
adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the
right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by
investment of WCIA's assets in financial instruments which comply with all State guidelines.
These revenues directly offset portions of the membership's assessment.
A Board of Directors governs WCIA, which is comprised of one designated representative
from each member. The Board elects an Executive Committee and appoints a Treasurer to
provide general policy direction for the organization. The WCIA Executive Director reports
to the Executive Committee and is responsible for conducting the day-to-day operations of
WCIA.
Property, Inland Marina, boiler, machinery and employee fidelity insurance is purchased
through commercial insurance brokers.
The City is self-insured for medical and dental coverage for its employees. A third parry
administrator, Benefits Management, Inc. processes all claims for reimbursement. The third
parry 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. The amount of
medical/dental claims in excess of commercial insurance for the last three years are:
$3,151,926 $3,748,763 $3,905,030
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.
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City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
The members of the board of directors of the District (the "PFD Board") shall be selected and
appointed by the Council, as required by the RCW. The PFD Board consisted of five
members. Three of the members will be appointed based on recommendations from local
organizations. The members will serve four-year terms. Of the initial members, one will be
appointed for a one year term, one for a two year term, one for a three year term, and the
remainder for four year terms. The Council may, by resolution, remove a member for any
reason. Vacancies will be filled by appointment by the Council.
All corporate powers of the District will be exercised by or under the authority of the PFD
Board; and the business, property and affairs of the District shall be managed under the
direction of the PFD Board, except as may be otherwise provided for by law herein, or in the
Charter.
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 2012, the City of Pasco paid Franklin County $249,937 in operating
expenses and $104,782 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
Substantially all City full-time and qualifying part-time employees participate in one of the
following statewide retirement systems administered by the Washington State Department of
Retirement Systems, under cost-sharing multiple-employer public employee defined benefit
retirement plans. The Department of Retirement Systems (DRS), a department within the
primary government of the State of Washington, issues a publicly available comprehensive
annual financial report (CAFR) that includes financial statements and required supplementary
information for each plan. The DRS CAFR may be obtained by writing to: Department of
Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA 98504-8380; or
it may be downloaded from the DRS website at www.drs.wa.gov.
The following disclosures are made pursuant to GASB Statements No. 27, Accounting for
Pensions by State and Local Government Employers and No. 50, Pension Disclosures, an
Amendment of GASB Statements No. 25 and No. 27.
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City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Public Employees' Retirement System (PERS) Plans 1, 2 And 3
Plan Description
The Legislature established PERS in 1947. Membership in the system includes: elected
officials; state employees; employees of the Supreme, Appeals, and Superior courts (other
than judges currently in the Judicial Retirement System); employees of legislative
committees; community and technical colleges, college and university employees not
participating in higher education retirement programs; judges of district and municipal
courts; and employees of local governments. PERS retirement benefit provisions are
established in Chapters 41.34 and 41.40 RCW and may be amended only by the State
Legislature.
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.
PERS members 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 exercised an option to transfer their membership to Plan 3. PERS
members joining the system on or after March 1, 2002 for state and higher education
employees, or September 1, 2002 for local government employees have the irrevocable
option of choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be
exercised within 90 days of employment. An employee is reported in Plan 2 until a choice is
made. Employees who fail to choose within 90 days default to PERS Plan 3.
Notwithstanding, PERS Plan 2 and Plan 3 members may opt out of plan membership if
terminally ill, with less than five years to live.
PERS Plan 1 and Plan 2 defined benefit retirement benefits are financed from a combination
of investment earnings and employer and employee contributions.
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 monthly benefit is two
percent of the average final compensation (AFC) per year of service. (AFC is the monthly
average of the 24 consecutive highest-paid service credit months.) The retirement benefit may
not exceed 60 percent of AFC. The monthly 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 retiring 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) was granted at age 66 based
upon years of service times the COLA amount. This benefit was eliminated by the
Legislature, effective July 1, 2011. Plan 1 members may elect to receive an optional COLA
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.
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City of Pasco, "Washington 2012 Comprehensive .2lnnualginanciaCAeport
PERS Plan 1 provides duty and non-duty disability benefits. Duty disability retirement
benefits for disablement prior to the age of 60 consist of a temporary life annuity payable to
the age of 60. The allowance amount is $350 a month, or two-thirds of the monthly AFC,
whichever is less. The benefit is reduced by any workers' compensation benefit and is
payable as long as the member remains disabled or until the member attains the age of 60. A
member with five years of covered employment is eligible for non-duty disability retirement.
Prior to the age of 55, the allowance amount is two percent of the AFC for each year of
service reduced by two percent for each year that the member's age is less than 55. The total
benefit is limited to 60 percent of the AFC and is actuarially reduced to reflect the choice of a
survivor option. A cost-of-living allowance was granted at age 66 based upon years of service
times the COLA amount. This benefit was eliminated by the Legislature, effective July 1,
2011. Plan 1 members may elect to receive an optional COLA that provides an automatic
annual adjustment based on the Consumer Price Index. The adjustment is capped at 3 percent
annually. To offset the cost of this annual adjustment, the benefit is reduced.
PERS Plan 1 members can receive credit for military service. Members can also purchase up
to 24 months of service credit lost because of an on-the-job injury.
PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2
members are eligible for normal retirement at the age of 65 with five years of service. The
monthly benefit is two percent of the AFC per year of service. (AFC is the monthly average
of the 60 consecutive highest-paid service months.)
PERS Plan 2 members who have at least 20 years of service credit and are 55 years of age or
older are eligible for early retirement with a reduced benefit. The benefit is reduced by an
early retirement factor(ERF) that varies according to age, for each year before age 65.
PERS Plan 2 members who have 30 or more years of service credit and are at least 55 years
old can retire under one of two provisions:
• With a benefit that is reduced by 3 percent for each year before age 65.
• With a benefit that has a smaller (or no) reduction (depending on age) that
imposes stricter return-to-work rules.
PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, 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.
The surviving spouse or eligible child or children of a PERS Plan 2 member who dies after
leaving eligible employment having earned ten years of service credit may request a refund of
the member's accumulated contributions.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit
component and member contributions finance a defined contribution component. The defined
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City of Pasco, WashiAgton 2012 Comprehensive .2lnnualginancialReport
benefit portion provides a monthly benefit that is one percent of the AFC per year of service.
(AFC is the monthly average of the 60 consecutive highest-paid service months.)
Effective June 7, 2006, PERS 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 for normal retirement at age 65, or they may retire early
with the following conditions and benefits:
• If they have at least ten service credit years and are 55 years old, the benefit is
reduced by an ERF that varies with age, for each year before age 65.
• If they have 30 service credit years and are at least 55 years old, they have the
choice of a benefit that is reduced by 3 percent for each year before age 65; or a
benefit with a smaller (or no) reduction factor (depending on age) that imposes
stricter return-to-work rules.
PERS Plan 3 defined benefit retirement benefits are also actuarially reduced to reflect the
choice, if made, 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.
PERS Plan 3 defined contribution retirement benefits are solely dependent upon contributions
and the results of investment activities.
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 Director of
the Department of Retirement Systems.
PERS Plan 2 and Plan 3 provide disability benefits. There is no minimum amount of service
credit required for eligibility. The Plan 2 monthly benefit amount is two percent of the AFC
per year of service. For Plan 3, the monthly benefit amount is one percent of the AFC per
year of service.
These disability benefit amounts are actuarially reduced for each year that the member's age
is less than 65, and 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 3 percent annually.
PERS Plan 2 and Plan 3 members may have up to ten years of interruptive military service
credit; five years at no cost and five years that may be purchased by paying the required
contributions. Effective July 24, 2005, a member who becomes totally incapacitated for
continued employment while serving the uniformed services, or a surviving spouse or eligible
children, may apply for interruptive military service credit. Additionally, PERS Plan 2 and
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City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Plan 3 members can also purchase up to 24 months of service credit lost because of an on-
the-job injury.
PERS members may also 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 to provide the member with a monthly annuity that is paid in addition to the member's
retirement benefit.
Beneficiaries of a PERS Plan 2 or Plan 3 member with ten years of service who is killed in
the course of employment receive retirement benefits without actuarial reduction, if the
member was not at normal retirement age at death. This provision applies to any member
killed in the course of employment, on or after June 10, 2004, if found eligible by the
Department of Labor and Industries.
A one-time duty-related death benefit is provided to the estate (or duly designated nominee)
of a PERS member who dies in the line of service as a result of injuries sustained in the
course of employment, or if the death resulted from an occupational disease or infection that
arose naturally and proximately out of said member's covered employment, if found eligible
by the Department of Labor and Industries.
Judicial Benefit Multiplier
During 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 Plan 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 AFC.
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 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.
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City of Pasco, "Washington 2012 Comprehensive .2lnnualginanciaCAeport
There are 1,184 participating employers in PERS. Membership in PERS consisted of the
following as of the latest actuarial valuation date for the plans of June 30, 2011:
Retirees and Beneficiaries Receiving Benefits 79,363
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 29,925
Active Plan Members Vested 105,578
Active Plan Members Nonvested 46,839
Total 261,705
Funding olicy
Each biennium, the state Pension Funding Council adopts PERS Plan 1 employer
contribution rates, PERS Plan 2 employer and employee contribution rates, and PERS Plan 3
employer contribution rates. Employee contribution rates for Plan 1 are established by statute
at six percent for state agencies and local government unit employees, and at 7.5 percent for
state government elected officials. The employer and employee contribution rates for Plan 2
and the employer contribution rate for Plan 3 are developed by the Office of the State
Actuary to 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 Plan 3 employee contribution
rates range from 5 percent to 15 percent, based on member choice. 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, 2012, are as follows:
Members not participating in JBM:
PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 7.21%** 7.21%** 7.21%***
Employee 6.00%**** 4.64%**** *****
* The employer rates include the employer administrative expense fee currently set at 0.16%.
** The employer rate for state elected officials is 10.74%for Plan 1 and 7.21%for Plan 2 and Plan 3.
*** Plan 3 defined benefit portion only.
**** The employee rate for state elected officials is 7.50%for Plan 1 and 4.64%for Plan 2.
*****Variable from 5.0%minimum to 15.0%maximum based on rate selected by the PERS 3 member.
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City of Pasco, 'WashiMton 2012 Comprehensive .2lnnualginancialReport
Members participating in JBM:
PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer—State Agency* 9.71% 9.71% 9.71%
Employer—Local Government* 7.21% 7.21% 7.21%
Employee—State Agency 9.76% 9.10% 7.50%
Employee—Local Government 1 12.26% 1 11.60% 1 7.50%
* The employer rates include the employer administrative expense fee currently set at 0.16%.
** Plan 3 defined benefit portion only.
***Minimum rate.
Both City and the employees made the required contributions. The City's required
contributions for the years ended December 31 were as follows:
PERS Plan 1 PERS Plan 2 PERS Plan 3
2012 $ 35,356 $ 586,286 $ 101,264
2011 $ 33,181 $ 478,488 $ 89,001
2010 $ 30,900 $ 399,013 $ 71,751
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans 1 & 2
Plan Description
The Legislature established LEOFF in 1970. Membership in the system includes all full-time,
fully compensated, local law enforcement commissioned officers, firefighters and, as of July
24, 2005, emergency medical technicians. 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. LEOFF retirement
benefit provisions are established in Chapter 41.26 RCW and may be amended only by the
State Legislature.
LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate
defined benefit plans. LEOFF members 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.
LEOFF defined benefit retirement benefits are financed from a combination of investment
earnings, employer and employee contributions, and a special funding situation in which the
state pays through state legislative appropriations.
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.
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City of Pasco, 'Washington 2012 Comprehensive .2lnnualginancialReport
LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan
1 members are eligible for retirement with five years of service at the age of 50. The benefit
per year of service calculated as a percent of final average salary(FAS) is as follows:
Term of Service Percent of Final Average Salary
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years 1.0%
The FAS is the basic monthly salary received at the time of retirement, provided a member
has held the same position or rank for 12 months preceding the date of retirement. Otherwise,
it is the average of the highest consecutive 24 months' salary within the last 10 years of
service. A cost-of-living allowance is granted(based on the Consumer Price Index).
LEOFF Plan 1 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) If no eligible spouse, eligible children
receive 30 percent of FAS for the first child plus 10 percent for each additional child, subject
to a 60 percent limitation of FAS, divided equally.
A one-time duty-related death 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
the age of 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 to 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. (FAS is
based on the highest consecutive 60 months). Plan 2 members 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 3 percent for each year prior to age 53.
A cost-of-living allowance is granted (based on the Consumer Price Index), capped at three
percent annually.
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City of Pasco, "Washington 2012 Comprehensive AnnualginancialReport
LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit
required for eligibility. The Plan 2 allowance amount is two 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 three 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 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 ten0 percent of FAS and two percent per year of service beyond five years. The first ten
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 receive 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 request 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 employment include the payment of on-going health care insurance
premiums paid to the Washington state Health Care Authority.
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City of Pasco, 'Washiagton 2012 Comprehensive .2lnnualginancialReport
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 373 participating employers in LEOFF. Membership in LEOFF consisted of the
following as of the latest actuarial valuation date for the plans of June 30, 2011:
Retirees and Beneficiaries Receiving Benefits 9,947
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 656
Active Plan Members Vested 13,942
Active Plan Members Non-vested 3,113
Total 27,658
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. 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, 2012, 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%.
**The employer rate for ports and universities is 8.62%.
Both 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
2012 $ 524 $ 504,331
2011 $ 712 $ 455,227
2010 $ 697 $ 472,818
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City of Pasco, UashiAgton 2012 Comprehensive .2lnnualginancialReport
Firemen's Pension
The City administers a closed, small single-employer defined benefit plan called the
Firemen's Pension Fund. GASB Statements No 25 and 27 require performance of biennial
actuarial valuations. The most recent actuarial study of the system was performed to
determine the funding requirements as of September 30, 2010. This plan in not audited;
however, a copy of the can be obtained by request at the following address:
City of Pasco
525 N 3'Ave
Pasco, WA 99301
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, 2011, 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.
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. The spouse is the 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
To Widow Only 33.3%
To Widow and One Child 45.8%
To Widow and Two Children 47.6%
To Widow and Three Children 50.0%
To Children Only 33.33%
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City of Pasco, 'Washington 2012 Comprehensive .2lnnualginanciaCAeport
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, 2012 was $1,815,126
and retirement pension payments totaled $92,890. The actuarial computation was performed
using the entry age normal cost method and include a UAAL amortization over a closed 20-
year period as of September 30, 2010. 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. Investment earnings of the assets are assumed to accrue at an
annual rate of 4.0%. Salaries are assumed to increase at the rate of 3.5% per annum. This
assumption is for future inflation increases only. Since the members have at least 20 years of
service, no additional increase is assumed for merit increases. Certain benefits increase at the
same rate as the salaries for active members of the same rank the retiree had attained at
retirement. These salaries were assumed to increase at the rate of 3.5% per annum and are
assumed to increase on January 1 each year. Other benefits increase at the same rate as the
CPI . The CPI was assumed to increase at the rate of 2.5%per annum.
GASB Statement No.27 Annual Pension Cost and Net Pension Obligation
Fiscal Year Ended December 31
Annual required contribution(ARC) 2008 2009 2010 2011 2012
Annual Normal Cost(BOY) $0 $0 $0 $0 $0
Amortization of UAAL(BOY) 0 0 0 0 0
Interest to EOY 0 0 0 0 0
ARC at EOY $0 $0 $0 $0 $0
Interest on Net Pension Obligation(NPO) 0 0 0 0 0
Adjustment to ARC 0 0 0 0 0
Annualpension cost(APC) $0 $0 $0 $0 $0
Employer contributions 0 0 0 0 0
Change in NPO $0 $0 $0 $0 $0
NPO at Beginning of Year 0 0 0 0 0
Net Pension Obligation at End of Year $0 $0 $0 $0 $0
The schedules of funding progress for postemployment defined benefit plans are found
immediately following the notes to the financial statements and present multi-year trend
information about whether the actuarial value of plan assets are increasing or decreasing
relative to the actuarial accrued liability for benefits over time. The pension plan has
remained fully funded over the last five years and no additional contributions were made.
The pension plan financial statements are as follows:
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City of Pasco, WashiAgton 2012 Comprehensive AnnualginanciaCAeport
Combining Statement of Changes in Net Position
Statement ofNet Position
Old Fire Pension Plan
Old Fire Pension Plan
For The Year Ended December 31,2012
December 31,2012 Fire
Pension
Fire Trust
Pension ADDITIONS
Trust Taxes $ 42,979
ASSETS Investment earnings
Cash&cash equivalents $ 275,914 Interest 9,901
Investments at fair market value: Dividends 50,178
LID note 75,014 Net change in fair value of investments 133,959
Federal agency 99,690 Total additions 237,017
Mutual fiords 1,364,508
Total assets 1,815,126 DEDUCTIONS
Pension benefits 92,890
LIABILITIES Administrative expenses 2,800
Due to Others 6,666 Total deductions 95,690
Total liabilities 6,666
Change in net assets 141,327
NET POSITION Net position-beginning 1,667,133
Held in trust for pension benefits
and other purposes $ 1,808,460 Net position-ending $ 1,808,460
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 material 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.
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City of Pasco, UashiAgton 2012 Comprehensive AnnualginanciaCAeport
The allocation of financial participation among the participating jurisdictions is based upon
the approved budget for that year and is billed quarterly in advance to each agency. On
dissolution of the Interlocal Agreement, the new position 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 2012 for these transactions was
$32,317
The City of Pasco's equity interest in BI-PIN was $112,380 on December 31, 2012, which is
reported as investment in joint ventures in the government-wide statement of net position.
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 $57,966 on December 31, 2012, which is
reported as an investment in joint ventures in the government-wide Statement of Net position.
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.
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City of Pasco, UashiAgton 2012 Comprehensive AnnualginanciaCAeport
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 statement for ACA may be obtained from the City of Pasco,
Washington.
F. Other postemployment benefits
LEOFF 1 - Medical
In addition to the pension benefits outlined in Note 5.C, the City of Pasco provides post-
retirement health care benefits via a single employer defined benefit plan in accordance with
state statute for retired police officers and firefighters who are eligible under the Law
Enforcement Officers' and Firefighters' (LEOFF)plan 1 retirement system..
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.
Funding Policy
Pursuant to state statute, the City reimburses 100% of authorized LEOFF 1 retiree healthcare
costs. The City pays a monthly insurance premium to cover each retiree under its medical
insurance program as well as any remaining eligible out of pocket expenses. Employer
contributions are financed on a 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.
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.
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City of Pasco, "Washington 2012 Comprehensive .2lnnualginanciaCAeport
Entities with fewer than 100 retired LEOFF members have the option under GASB 45 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 for City to perform an in-house
evaluation. Actuarial evaluations involve estimates and assumptions about the distant future that
are continually revised. The schedule of funding progress, located following the notes, provides
multi-year trend data to help determine whether net plan assets are increasing or decreasing over
time. Benefits are projected based on benefit levels and cost-sharing arrangements as of the date
of the valuation and do not explicitly reflect the potential effects of legal or contractual funding
limitations. Actuarial valuations take a long-term perspective that involves the use of techniques
designed to reduce volatility.
The City of Pasco has a total of 33 LEOFF 1 members in this plan. Twenty-nine of those
members are retired and four are still active employees.
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, 2009 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 2011. 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. The Actuarial Accrued Liability and the Net OPEB Obligation are
amortized on an open basis as a level dollar over 15 years. Assumptions include an inflation rate
of 3.5%, an investment return of 4.5% and a health care trend rate of 5%. These assumptions are
individually and collectively reasonable for the purpose of this valuation. As the year ended
December 31, 2010 was the first year of implementation of GASB 45, annual OPEB cost was
equal to the ARC for the year.
2010 2011 2012
Annual required contribution(ARC) $946,632 $937,477 $969,799
Interest on Net OPEB Obligation(NOO) 0 23,304 51,716
Adjustments to ARC 0 (9,155) (107,011)
Annual OPEB cost(expense) $946,632 $951,626 $914,504
Contributions made 364,043 370,815 370,815
Increase NOO 582,589 580,811 543,689
NOO at Beginning of Year 0 582,589 1,163,400
NOO at End of Year $582,589 $1,163,400 $1,707,089
The City's OPEB cost, the percentage of OPEB cost contributed to the plan, and the net OPEB
obligation for the years ending December 31 are shown on the following schedule:
%Of
Fiscal Annual Annual Net
Year OPEB OPEB OPEB
Ended Cost Contributed Obligation
12/31/12 $914,504 41% $1,707,089
12/31/11 $951,626 39% $1,163,400
12/31/10 $946,632 38% $582,589
75
City of Pasco, 'WashiAgton 2012 Comprehensive AnnualginanciaCAeport
Fire Pension - Medical
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 single employer, 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 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 for any
requirements in excess of amounts previously set aside in the Fire Pension OPEB trust fund.
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. Actuarial evaluations
involve estimates and assumptions about the distant future that are continually revised. The
schedule of funding progress, located following the notes, provides multi-year trend data to help
determine whether net plan assets are increasing or decreasing over time. Benefits are projected
based on benefit levels and cost-sharing arrangements as of the date of the valuation and do not
explicitly reflect the potential effects of legal or contractual funding limitations. Actuarial
valuations take a long-term perspective that involves the use of techniques designed to reduce
volatility.
The City of Pasco has a total of 8 LEOFF plan 1 members that are also members of the Old
Firemen's Pension Plan and are fully funded through the Old Fire Pension Fund. All are retired.
Based on the 2012 in-house evaluation, the Actuarial Accrued Liability for the Fire Pension
OPEB Fund is $1,776,739. As of December 31, 2012, the fund had assets of$2,074,744.
The City uses the alternative measurement method permitted under GASB Statement No. 45.
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
76
City of Pasco, "Washington 2012 Comprehensive AnnualginancialReport
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 actuarial cost method used to
determine the actuarial accrued liability was Projected Unit Credit. The Actuarial Accrued
Liability and the Net OPEB Obligation are amortized on an open basis as a level dollar over 15
years. Assumptions include an inflation rate of 3.5%, an investment return of 4.5% and a health
care trend rate of 5%. These assumptions are individually and collectively reasonable for the
purpose of this valuation. As December 31, 2010 was the first year of implementation for GASB
45, annual OPEB cost was equal to the ARC for the year.
2010 2011 2012
Annual required contribution(ARC) $0 $0 $0
Interest on Net OPEB Obligation(NOO) 0 0 0
Annual OPBEP cost(expense) $0 $0 $0
Contributions made 0 0 0
Increase NOO $0 $0 $0
NOO at Beginning of Year 0 0 0
NOO at End of Year $0 $0 $0
The City's OPEB cost, the percentage of OPEB cost contributed to the plan, and the net OPEB
obligation for the years ending December 31 are shown on the following schedule:
%of
Fiscal Annual Annual Net
Year OPEB OPEB OPEB
Ended Cost Contributed Obligation
12/31/12 $0 N/A $0
12/31/11 $0 N/A $0
12/31/10 $0 N/A $0
Following are the financial statements for the Other Post Employment Benefit Trust Fund:
Combining Statement of Changes in Net Position
Other Postemployment Benefit Trust
For The Year Ended December 31,2012
ADDITIONS
Investment earnings
Statement of Net Position Interest 531
Other Postemployment Benefit Trust Dividends 39,784
December 31,2012 Net change in fair value of investments 154,570
Total additions 194,885
ASSETS DEDUCTIONS
Cash&cash equivalents $ 324,984 Medical premiums 110,004
Investments at fair market value: Total deductions 110,004
Mutual fiords 1,749,760
Total assets 2,074,744
NET POSITION Change in net assets 84,881
Held in trust for pension benefits Net position-beginning 1,989,863
and other purposes $ 2,074,744 Net position-ending $ 2,074,744
77
City of Pasco, Washington 2012 Comprehensive AnnualginanciaCAeport
G. Prior period adjustments
"Net position beginning" on the Statement of Activities in the Governmental Activities column
was restated(decreased) a net total of$3,223,269. The largest component of this change is due to
restatement of capital asset to correct prior year's calculation of accumulated depreciation of
infrastructure assets and assets donated in the prior year. $6,264 was restated to show the closing
of the Bi-centennial fund and inclusion instead with the General Fund.
78
City of Pasco, WashiAgton 2012 Comprehensive AnnualginanciaCAeport
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 Contrbution of ARC
Ending Premiums Contributions Contrbutions (ARC) Contrbuted
12/31/2012 42,979 - 42,979 - N/A%
12/31/2011 45,132 - 45,132 - N/A%
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%
Schedule of Funding Progress for the Firemen's Pension 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 31,2012 $ 1,815 $ 1,599 $ (216) 114% N/A N/A %
December 31,2011 $ 1,667 $ 1,599 $ (68) 104% N/A N/A %
September 30,2010 $ 1,599 $ 1,599 $ - 100% N/A N/A %
79
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
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 Contribution of ARC
Ending Premiums Contributions Contributions (ARC) Contributed
12/31/2012 - 423,901 423,901 969,799 44%
12/31/2011 - 364,043 364,043 937,477 39%
12/31/2010 - 364,043 364,043 946,632 38%
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 31,2012 $ - $ 10,002 $ 10,002 0% N/A N/A%
December 31,2011 $ - $ 9,638 $ 9,638 0% N/A N/A%
December 31,2010 $ - $ 9,693 $ 9,693 0% N/A N/A%
80
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
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
12/31/2012 - - - - N/A%
12/31/2011 - - - - N/A%
12/31/2010 - - - - N/A%
12/31/2009 - - - - N/A%
12/31/2008 - - - - N/A%
12/31/2007 - - - - N/A%u
12/31/2006 - - - - N/A%
Schedule of Funding Progress for the Firemen's OPEB Fund(rounded to thousands)
Unfinded UAAL As A
Actuarial Actuarial Actuarial Percentage
Asset Accrued Accrued Funded Covered of Covered
Valuation Date Value Liabilities Liabilities (UAAL) Ratio Payroll Payroll
December 31,2012 $ 2,075 $ 1,777 $ (298) 117% N/A N/A%
December 31,2011 $ 1,990 $ 1,736 $ (254) 115% N/A N/A%
December 31,2010 $ 1,993 $ 1,812 $ (181) 110% N/A N/A%
81
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
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 sued for purposes that support the reporting government's programs.
82
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2012
Total Total Total Cemetery
Nonmajor Nonmajor Nonmajor Perpetual Care Total
Other Special Debt Construction Nonmajor Other
Revenue Service Projects Permanent Governmental
ASSETS
Cash&cash equivalents $ 11,129,269 $ 1,493,860 $ 1,535,130 $ 418,106 $ 14,576,365
Restricted cash-deposits 11,691 11,691
Investments 1,000,000 1,000,000
Receivables(net of allowances):
Taxes 217,883 23,027 240,910
Customers 349,082 2,997 75 352,154
Interfund loans 689,000 689,000
Grants 157,638 97,508 255,146
Special assessments&loans 140,733 527,370 668,103
Total assets 13,695,296 2,044,257 1,635,635 418,181 17,793,369
LIABILITIES
Accounts payable 327,084 15,000 602,309 944,393
Interfitnd loans payable 1,673,000 664,334 2,337,334
Due to other governments 138 138
Deposits payable from restricted assets 11,691 11,691
Total liabilities 2,011,913 679,334 602,309 3,293,556
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 200,145 550,397 750,542
FUND BALANCES
Nonspendable
Cemetery permanent fund 418,181 418,181
Restricted
Street and boulevard 6,489,219 6,489,219
Litter&housing abatement 288,372 288,372
Park development 1,739,296 1,739,296
Capital improvements 2,259,281 2,259,281
Economic development 220,870 220,870
Geneneral obligation debt 336,639 336,639
Special assessment debt 239,685 239,685
Committed
Special revenue funds 1,117,201 1,117,201
Construction projects 1,033,326 1,033,326
Debt guarantee 860,575 860,575
Unassigned (631,001) (622,373) (1,253,374)
Total fund balances 11,483,238 814,526 1,033,326 418,181 13,749,271
Total liabilities,deferrend inflows of
resources and fiord balances $ 13,695,296 $ 2,044,257 $ 1,635,635 $ 418,181 S 17,793,369
83
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31,2012
Total Total Cemetery
Nonmajor Nonmajor Total Perpetual Care Total
Other Special Debt Nonmajor Nonmajor Other
Revenue Service Construction Permanent Governmental
REVENUES
Taxes $ 2,648,090 $ 522,379 $ 3,170,469
Licenses and permits 289,571 289,571
Intergovernmental revenue 2,376,743 685,467 3,062,210
Charges for services 5,366,053 17,517 5,383,570
Fines and forfeitures 41,896 41,896
Miscellaneous revenue 1,722,741 253,087 7,196 597 1,983,621
Total revenues 12,445,094 775,466 692,663 18,114 13,931,337
EXPENDITURES
Current:
Public safety 3,224,078 3,224,078
Physical environment 1,125,216 1,125,216
Transportation 2,889,888 291 2,890,179
Economic environment 949,356 949,356
Health and human services 357,800 357,800
Culture and recreation 2,367,399 369,378 2,736,777
Capital outlay.
General government 591,563 591,563
Transportation 34,141 3,106,627 3,140,768
Economic environment 1,526,881 1,526,881
Culture and recreation 184,912 184,912
Debt service:
Principal 551,034 624,337 1,175,371
Interest 23,122 111,963 135,085
Total expenditures 13,048,915 736,300 4,252,771 - 18,037,986
Excess of revenues
over(under)expenditures (603,821) 39,166 (3,560,108) 18,114 (4,106,649)
OTHER FINANCING SOURCES(USES)
Transfers in 2,319,087 3,576,121 5,895,208
Transfers out (2,492,030) (378,939) (255,087) (3,126,056)
Total other financing sources(uses) (172,943) (378,939) 3,321,034 - 2,769,152
Net change in fund balances (776,764) (339,773) (239,074) 18,114 (1,337,497)
Fund balances-beginning 12,260,002 1,154,299 1,272,400 400,067 15,086,768
Fund balances-ending $ 11,483,238 $ 814,526 $ 1,033,326 $ 418,181 $ 13,749,271
84
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Schedule of Expenditures -Budget to Actual
Nonmajor Governmental Funds
For the Year Ended December 31,2012
Revenues Expenditures
Final Variance to Final Variance to
Budget Actual Final Budget Budget Actual Final Budget
Special Revenue Funk
City Street Fund $ 2,570,793 $ 1,855,456 $ (715,337) $ 2,570,793 $ 1,628,343 $ (942,450)
Arterial Street Fund 989,484 576,810 (412,674) 1,085,533 273,066 (812,467)
I-82 Traffic Impact Fund 1,183,932 398,384 (785,548) 1,119,752 105,907 (1,013,845)
Street Overlay Fund 3,760,455 823,319 (2,937,136) 3,794,707 1,290,153 (2,504,554)
Connnunity Dev Block Grant Fund 2,232,480 948,200 (1,284,280) 2,382,480 908,986 (1,473,494)
ML King Community Center Fund 171,133 168,558 (2,575) 171,133 145,798 (25,335)
Ambulance Services Fund 3,348,595 3,397,286 48,691 3,509,495 3,356,758 (152,737)
City View Cemetery Fund 273,003 249,220 (23,783) 273,003 241,789 (31,214)
Blvd Perpetual Maintenance Fund 1,808,791 162,268 (1,646,523) 1,808,791 108,460 (1,700,331)
Athletic Program Fund 324,004 198,113 (125,891) 324,004 178,411 (145,593)
Golf Course 1,833,188 1,750,555 (82,633) 1,759,473 1,649,013 (110,460)
Senior Center Fund 364,109 310,522 (53,587) 361,109 357,800 (3,309)
Multi-Modal Fund 110,720 70,200 (40,520) 110,720 48,153 (62,567)
School Impact Fees 920,000 831,815 (88,185) 920,000 829,567 (90,433)
Rivershore Trail&Marina Fund 39,935 11,447 (28,488) 44,935 9,185 (35,750)
Special Lodging Assess Fund 195,790 194,472 (1,318) 195,790 200,458 4,668
Litter Abatement Fund 21,595 13,551 (8,044) 21,595 15,400 (6,195)
Revolving Abatement Fund 295,558 52,277 (243,281) 325,558 49,191 (276,367)
TRAC Develop&Operating Fund 370,850 332,896 (37,954) 380,850 354,718 (26,132)
Park Development Fund 1,600,522 150,489 (1,450,033) 1,600,522 - (1,600,522)
Capital Improvement Fund 2,655,371 954,159 (1,701,212) 2,809,284 724,081 (2,085,203)
Industrial Development Fund 1,201,897 1,053,928 (147,969) 3,120,138 1,837,681 (1,282,457)
Stadium/Convention Ctr Fund 272,126 260,256 (11,870) 976,915 826,936 (149,979)
Landfill Remediation Fund - - 401,091 401,091
Total 26,544,331 14,764,181 (11,780,150) 30,067,671 15,540,945 (14,526,726)
Debt Service Funk
LID Loans 130,069 99,361 (30,708) 594,715 411,235 (183,480)
LID Bonds 396,186 149,246 (246,940) 196,186 181,000 (15,186)
Library/Fire Station Bonds 247,174 144,156 (103,018) 247,174 144,102 (103,072)
2002 UTGO Bonds 615,822 379,016 (236,806) 615,822 378,902 (236,920)
LID Guarantee 936,283 3,687 (932,596) 936,283 (936,283)
Total 2,325,534 775,466 (1,550,068) 2,590,180 1,115,239 (1,474,941)
Capital Project Funk
General Purpose Construction 8,433,350 4,268,784 (4,164,566) 6,971,260 4,507,858 (2,463,402)
Total 8,433350 4,268,784 (4,164,566) 6,971,260 4,507,858 (1463,402)
Permanent Funk
Cemetery Perpetual Care 412,234 18,114 $ (394,120) 412;234 $ - $ (412,234)
Total $ 411234 $ 18,114 $ (394,120) $ 412,234 $ $ (412,234)
85
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31,2012
Community
City Arterial I-182 Traffic Street Development
Street Street Impact Overlay Block Grant
ASSETS
Cash&cash equivalents $ 358,210 $ 1,111,060 $ 1,050,378 $ 2,545,240 $ 21,647
Restricted cash-deposits
Investments
Receivables(net of allowances):
Taxes 81,968 33,682 58,500
Customers 69,859
Interfimd loans
Grants 154,957
Special assessments&loans 140,733
Total assets 510,037 1,144,742 1,050,378 2,603,740 317,337
LIABILITIES
Accounts payable 34,695 6,304 60,312 21,020
Interfund loans payable 236,000
Due to other governments
Deposits payable
Total liabilities 34,695 6,304 - 60,312 257,020
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 140,733
FUND BALANCES
Nonspendable
Restricted
Street and boulevard 1,130,800 1,049,009 2,539,155
Committed
Special revenue funds 475,342 7,638 1,369 4,273
Unassigned (80,416)
Total Fund Balances 475,342 1,138,438 1,050,378 2,543,428 (80,416)
Total liabilities,deferrend inflows of
resources and fund balances $ 510,037 $ 1,144,742 $ 1,050,378 $ 2,603,740 $ 317,337
86
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
M.L.King
Community Ambulance City View Athletic Golf Senior Multi-Modal
Center Services Cemetery Blvd.Perpetual Program Course Center Facility
$ 38,426 $ 7,429 $ 87,089 $ 81,144 $ 160,664 $ 91,472 $ 46,746 $ 72,145
193 1,150 5,098 5,250
1,000,000
183,900 4,375 111 253 2,000 1,736 3,710
689,000
2,681
38,619 191,329 91,464 1,770,255 162,067 98,570 51,163 81,105
31615 20,309 1,493 17,890 12,424 7,406 4,296
48,000
138
193 1,150 5,098 5,250
3,808 68,309 1,493 - 19,040 17,522 7,544 9,546
21,150 38,262
1,770,255
34,811 123,020 68,821 143,027 42,786 43,619 71,559
34,811 123,020 68,821 1,770,255 143,027 42,786 43,619 71,559
$ 38,619 $ 191,329 $ 91,464 $ 1,770,255 $ 162,067 S 98,570 $ 51,163 S 81,105
87
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Combining Balance Sheet
Nonmajor Special Revenue Funds (continued)
December 31,2012
Rivershore Trail Special
School &Marina Lodging Litter Revolving
Impact Fees Maintenance Assessment Abatement Abatement
ASSETS
Cash&cash equivalents $ 63,127 $ 10,728 $ 11,532 $ 6,433 $ 200,892
Restricted cash-deposits
Investments
Receivables(net of allowances):
Taxes 12,340
Customers 313 82,825
Interfund loans
Grants
Special assessments&loans
Total assets 63,127 10,728 23,872 6,746 283,717
LIABILITIES
Accounts payable 60,879 435 15,587 112 1,979
Interfimd loans payable
Due to other governments
Deposits payable from restricted assets
Total liabilities 60,879 435 15,587 112 1,979
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
FUND BALANCES
Restricted
Street and boulevard
Litter&housing abatement 6,634 281,738
Park development
Capital improvements
Economic development
Committed
Special revenue fiords 10,293 8,285
Unassigned 2,248
Total Fund Balances 2,248 10,293 8,285 6,634 281,738
Total liabilities,deferrend inflows of
resources and fiord balances $ 63,127 $ 10,728 $ 23,872 $ 6,746 $ 283,717
gg
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Total
T.R.A.C. Stadium/ Nonmajor
Development Park Capital Economic Convention Landfill Special
&Operating Development Improvements Development Center Remediation Revenue
$ 60,707 $ 1,741,738 $ 2,262,793 $ 976,308 $123,361 $11,129,269
11,691
1,000,000
15,697 15,696 217,883
349,082
689,000
157,638
140,733
76,404 1,741,738 2,262,793 976,308 139,057 13,695,296
55,438 2,890 327,084
700,000 689,000 1,673,000
138
11,691
755,438 691,890 2,011,913
200,145
6,489,219
288,372
1,739,296 1,739,296
2,259,281 2,259,281
220,870 220,870
76,404 2,442 3,512 1,117,201
(552,833) (631,001)
76,404 1,741,738 2,262,793 220,870 (552,833) 11,483,238
$ 76,404 $ 1,741,738 $ 2,262,793 $ 976,308 $139,057 $ $13,695,296
89
City of Pasco, 'WashiMton 2012 Comprehensive AnnualginanciaCAeport
Combining Statement of Revenues,Expenditures, and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended December 31,2012
Connminity
City Arterial I-182 Traffic Street Development
Street Street Impact Overlay Block Grant
REVENUES
Taxes $ 204,318 $ 819,046
Licenses and permits 289,571
Intergovernmental revenue 878,816 419,172 873,245
Charges for services 25
Miscellaneous revenue 7,751 7,638 293,297 4,273 74,930
Total Revenues 1,380,456 426,810 293,297 823,319 948,200
EXPENDITURES
Current:
Public safety
Physical environment
Transportation 1,594,202 24,179 1,271,507
Economic environment 320,288
Health and human services
Culture and recreation
Capital outlay:
Transportation 34,141
Economic environment 19,140
Total Expenditures 1,628,343 24,179 - 1,271,507 339,428
Excess of revenues
over(under)expenditures (247,887) 402,631 293,297 (448,188) 608,772
OTHER FINANCING SOURCES(USES)
Transfers in 475,000 150,000 105,087
Transfers out (248,887) (105,907) (18,646) (569,558)
Total other financing sources(uses) 475,000 (98,887) (820) (18,646) (569,558)
Net change in fiord balances 227,113 303,744 292,477 (466,834) 39,214
Fund balances-begi muig 248,229 834,694 757,901 3,010,262 (119,630)
Fund balances-ending $ 475,342 $ 1,138,438 $ 1,050,378 $ 2,543,428 $ (80,416)
90
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
M.L.King
Cominurity Ambulance City View Athletic Golf Senior Muhl-Modal
Center Services Cemetery Blvd.Perpetual Program Course Center Faciityy
1,534 24,867
5,032 2,504,040 219,001 149,009 1,500,356
30,526 1,712 219 162,268 30,604 50,199 61,155 70,200
35,558 2,507,286 219,220 162,268 179,613 1,550,555 86,022 70,200
3,224,078
241,789 38,460
357,800
145,798 178,411 1,649,013 48,153
145,798 3,224,078 241,789 38,460 178,411 1,649,013 357,800 48,153
(110,240) (716,792) (22,569) 123,808 1,202 (98,458) (271,778) 22,047
133,000 890,000 30,000 18,500 200,000 224,500
(132,680) (70,000)
133,000 757,320 30,000 (70,000) 18,500 200,000 224,500 -
22,760 40,528 7,431 53,808 19,702 101,542 (47,278) 22,047
12,051 82,492 61,390 1,716,447 123,325 (58,756) 90,897 49,512
$ 34,811 $ 123,020 $ 68,821 $ 1,770,255 $ 143,027 $ 42,786 $ 43,619 $ 71,559
91
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
Nonmajor Special Revenue Funds(continued)
For the Year Ended December 31,2012
Rivershore Trail Special T.RA.C.
School &Marina Lodging Litter Revolving Development
Impact Fees Maintenance Assessment Abatement Abatement &Operating
REVENUES
Taxes $ 140 $ 194,452 $ 239,744
Licenses and permits
Intergovernmental revenue
Charges for services 831,675 5,000 3,868
Fines and forfeitures 41,896
Miscellaneous revenue 11,447 20 8,551 6,513 152
Total Revenues 831,815 11,447 194,472 13,551 52,277 239,896
EXPENDITURES
Current:
Public safety
Physical environment 829,567 15,400
Transportation
Economic environment 49,191 249,937
Health and human services
Culture and recreation 9,185 200,458
Capital outlay:
Transportation
Economic environment
Debt Service:
Principal 91,034
Interest 13,747
Total Expenditures 829,567 9,185 200,458 15,400 49,191 354,718
Excess of revenues
over(under)expenditures 2,248 2,262 (5,986) (1,849) 3,086 (114,822)
OTHER FINANCING SOURCES(USES)
Transfers in 93,000
Transfers out
Total other financing sources(uses) - - - 93,000
Net change in fund balances 2,248 2,262 (5,986) (1,849) 3,086 (21,822)
Fund balances-beginning - 8,031 14,271 8,483 278,652 98,226
Fund balances-ending $ 2,248 S 1 0,293 $ 8,285 $ 6,634 $ 281,738 $ 76,404
92
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Total
Notnnajor
Park Capital Econotnic Stadium Landfill Special
Development Improvement Development Corry.Center Remediation Revernre
950,646 $ 239,744 $ 2,648,090
289,571
179,109 2,376,743
148,047 5,366,053
41,896
2,442 3,513 874,819 20,512 1,722,741
150,489 954,159 1,053,928 260,256 12,445,094
3,224,078
1,125,216
2,889,888
329,940 949,356
357,800
136,381 2,367,399
34,141
1,507,741 1,526,881
460,000 551,034
9,375 23,122
- - 1,837,681 605,756 13,048,915
150,489 954,159 (783,753) (345,500) (603,821)
2,319,087
(724,081) (221,180) (401,091) (2,492,030)
- (724,081) (221,180) (401,091) (172,943)
150,489 230,078 (783,753) (566,680) (401,091) (776,764)
1,591,249 2,032,715 1,004,623 13,847 401,091 12,260,002
$ 1,741,738 $ 2,262,793 $ 220,870 $ (552,833) $ - $ 11,483,238
93
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
Combining Balance Sheet
Nonmajor Debt Service Funds
December 31,2012
Total
1999 Library/ 2002 Local Improv. Nonmajor
LID LID Fire Station Unl.Tax G.O. District Debt
Loans Bonds Bonds Refunding Bonds Guaranty Service
ASSETS
Cash&cash equivalents $ 46,780 $ 182,129 $ 98,913 $ 237,726 $ 928,312 $ 1,493,860
Restricted cash-deposits
Taxes 6,196 16,831 23,027
Special assessments&loans 324,946 192,970 9,454 527,370
Total assets 371,726 375,099 105,109 254,557 937,766 2,044,257
LIABILITIES
Accounts payable 15,000 15,000
Interfimd bans payable 664,334 664,334
Total liabilities 664,334 - - - 15,000 679,334
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 324,946 192,970 6,196 16,831 9,454 550,397
FUND BALANCES
Restricted
Geneneral obligation debt 98,913 237,726 336,639
Special assessment debt 4,819 182,129 52,737 239,685
Committed
Debt guarantee 860,575 860,575
Unassigned (622,373) (622,373)
Total Fund Balances (617,554) 182,129 98,913 237,726 913,312 814,526
Total liabilities,deferrend inflows of
resources and fund balances $ 371,726 $ 375,099 $ 105,109 $ 254,557 $ 937,766 $ 2,044,257
94
City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
Nonmajor Debt Service Funds
For the Year Ended December 31,2012
Total
1999 Library/ 2002 Local Improv. Nonmajor
LID LID Fire Station Unl.Tax G.O. District Debt
Loans Bonds Bonds Refunding Bonds Guaranty Service
REVENUES
Taxes $ 143,940 $ 378,439 $ 522,379
Miscellaneous revenue 99,361 149,246 216 577 3,687 253,087
Total Revenues 99,361 149,246 144,156 379,016 3,687 775,466
EXPENDITURES
Current:
Debt Service:
Principal 14,337 160,000 100,000 350,000 624,337
Interest 17,959 21,000 44,102 28,902 111,963
Total Expenditures 32,296 181,000 144,102 378,902 - 736,300
Excess of revenues
over(under)expenditures 67,065 (31,754) 54 114 3,687 39,166
OTHER FINANCING SOURCES(USES)
Transfers out (378,939) (378,939)
Total other financing sources(uses) (378,939) - - - - (378,939)
Net change in fiord balances (311,874) (31,754) 54 114 3,687 (339,773)
Fund balances-beginning (305,680) 213,883 98,859 237,612 909,625 1,154,299
Fund balances-ending $ (617,554) $ 182,129 $ 98,913 $ 237,726 $ 913,312 S 814,526
95
City of Pasco, -Washington 2012 Comprehensive .annual EtnanciaCR.eport
Combining Balance Sheet
Nonmajor Capital Projects Funds
December 31, 2012
Total
Capital Projects
ASSETS
Cash&cash equivalents $ 1,535,130
Receivables (net of allowances):
Customers 2,997
Grants 97,508
Total assets 1,635,635
LIABILITIES
Accounts payable 602,309
Total liabilities 602,309
FUND BALANCES
Committed
Construction projects 1,033,326
Total fund balances 1,033,326
Total liabilities, deferrend inflows of
resources and fund balances $ 1,635,635
96
City of Pasco, "Washington 2012 Comprehensive AnnualginanciaCAeport
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Capital Project Funds
For the Year Ended December 31, 2012
Total
Capital Projects
REVENUES
Intergovernmental revenue $ 685,467
Miscellaneous revenue 7,196
Total Revenues 692,663
EXPENDITURES
Current:
Transportation 291
Culture and recreation 369,378
Capital outlay:
General government 591,563
Transportation 3,106,627
Culture and recreation 184,912
Total Expenditures 4,252,771
Excess of expenditues over revenues (3,560,108)
OTHER FINANCING SOURCES (USES)
Transfers in 3,576,121
Transfers out (255,087)
Total other financing sources(uses) 3,321,034
Net change in fnnd balances (239,074)
Fund balances - beginning 1,272,400
Fund balances - ending $ 1,033,326
97
City of Pasco, 'Washington 2012 Comprehensive AnnualginanciaCAeport
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.
98
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Combining Statement of Net Position
Nonmajor Internal Services Fund
December 31,2012
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 $ 300,438 $ 3,971,191 $ 657,547 $ 12,829 $ 220,026 $ 1,906,142 $ 7,068,173
Interfund loans-current portion 43,890 43,890
Total current assets 300,438 4,015,081 657,547 12,829 220,026 1,906,142 7,112,063
Noncurrent assets:
Interfimd loans 241,504 241,504
Construct work in process 435,160 435,160
Machinery and equipment 6,093,075 2,511,449 8,604,524
Accumulated depreciation (3,979,109) (1,354,668) (5,333,777)
Total noncurrent assets - 2,790,630 - - 1,156,781 3,947,411
Total assets 300,438 6,805,711 657,547 12,829 220,026 3,062,923 11,059,474
LIABILITIES
Current liabilities:
Accounts payable 36,941 21,460 516,143 5,815 580,359
Compensated absences-current 3,575 2,191 5,766
Total current liabilities 40,516 21,460 516,143 8,006 586,125
Noncurrent liabilities:
Compensated absences 11,040 3,114 14,154
Total noncurrent liabilities 11,040 - - 3,114 14,154
Total liabilities 51,556 21,460 516,143 - 11,120 - 600,279
NET POSITION
Net investment in capital assets 2,549,126 1,156,781 3,705,907
Unrestricted 248,882 4,235,125 141,404 12,829 208,906 1,906,142 6,753,288
Total net position $ 248,882 $ 6,784,251 $ 141,404 $ 12,829 $ 208,906 $ 3,062,923 $ 10,459,195
99
City of Pasco, `Washington 2012 Comprehensive AnnuaCg%nanciaCR.eport
Combining Statement of Revenues,Expenses,and Changes in Net Position
Nonmajor Internal Service Funds
For the Year Ended December 31,2012
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
OPERATING REVENUES
Miscellaneous interfund charges $ 1,019,602 $ 982,889 $ 3,953,114 $ 268 $ 419,975 $ 485,370 $ 6,861,218
Total operating revenues 1,019,602 982,889 3,953,114 268 419,975 485,370 6,861,218
OPERATING EXPENSES
Depreciation 428,741 255,977 684,718
Salaries&wages 194,876 70,602 265,478
Personnel benefits 68,405 23,245 91,650
Supplies 576,914 141,151 269 225,049 943,383
Services 106,133 4,393,376 23,738 4,523,247
Total operating expenses 946,328 569,892 4,393,376 269 342,634 255,977 6,508,476
OPERATING INCOME(LOSS) 73,274 412,997 (440,262) (1) 77,341 229,393 352,742
NONOPERATING REVENUES(EXPENSES)
Investment income 381 16,825 1,246 18 306 2,493 21,269
Gain on sale of capital assets 3,265 1,700 4,965
Total nonoperating revenues 3,646 18,525 1,246 18 306 2,493 26,234
Income(loss)before contributions and
transfers 76,920 431,522 (439,016) 17 77,647 231,886 378,976
Transfers in 435,000 435,000
Changes in net position 76,920 866,522 (439,016) 17 77,647 231,886 813,976
Netposition-beginning 171,962 5,917,729 580,420 12,812 131,259 2,831,037 9,645,219
Net position-ending $ 248,882 $ 6,784,251 $ 141,404 $ 12,829 $ 208,906 $ 3,062,923 $10,459,195
100
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Combining Statement of Cash Flows
Nonmajor Internal Service Funds
For the Year Ended December 31,2012
Governmental Activities Business-Type Activities
Equipment Equipment Equipment Equipment Total
Rental Rental Medical Central Rental Rental Internal
Operations Replacement Insurance Stores Operations Replacement Service
CASH FLOW FROM OPERATING ACTIVITIES:
Cash from customers $ 1,019,602 $ 982,889 $ 3,953,114 $ 268 $ 419,975 $ 485,370 $ 6,861,218
Payments to employees (263,281) (93,847) (357,128)
Payments to suppliers (674,829) (119,691) (4,429,091) (310) (245,263) (5,469,184)
Net cash provided by operating activities 81,492 863,198 (475,977) (42) 80,865 485,370 1,034,906
CASH FLOW FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Proceeds from disposal of assets 3,265 2,322 5,587
Transfers in for capital 435,000 435,000
Acquisition of capital assets (874,242) (20,072) (894,314)
Net cash used n capital activities 3,265 (436,920) - - (20,072) (453,727)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment sales and income 381 16,825 1,246 18 306 2,493 21,269
Interfund loans 32,288 32,288
Net cash provided from investing activities 381 49,113 1,246 18 306 2,493 53,557
Net increase in cash and cash equivalents 85,138 475,391 (474,731) (24) 81,171 467,791 634,736
Beginning cash and cash equivalents 215,300 3,495,800 1,132,278 12,853 138,855 1,438,351 6,433,437
Ending cash and cash equivalents $ 300,438 $ 3,971,191 $ 657,547 $ 12,829 $ 220,026 $ 1,906,142 $ 7,068,173
CASH PROVIDED BY OPERATING
ACTIVITIES:
Net operating income(loss) $ 73,274 $ 412,997 $ (440,262) $ (1) $ 77,341 $ 229,393 $ 352,742
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
Depreciation 428,741 255,977 684,718
Increase(decrease)in accounts payable 8,218 21,460 (35,715) (41) 3,524 (2,554)
Net cash provided by operating activities $ 81,492 $ 863,198 $ (475,977) S (42) $ 80,865 $ 485370 $ 1,034,906
101
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Trust and Agency Funds
Pension and Other Postemployment Benefit Trust Funds
Pension and other post-employm ent 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.
102
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Combining Statement of Net Position
Fiduciary Funds
December 31, 2012
Trust Funds
Other Total
Postemployment Fire Pension and Other
Benefit Pension Postemployment
Trust Trust Benefits
ASSETS
Cash&cash equivalents $ 324,984 $ 275,914 $ 600,898
Investments at fair market value:
LID note 75,014 75,014
Federal agency 99,690 99,690
Mutual funds 1,749,760 1,364,508 3,114,268
Total assets 2,074,744 1,815,126 3,889,870
LIABILITIES
Due to Others 6,666 6,666
Total liabilities - 6,666 6,666
NET POSITION
Held in trust for pension benefits
and other purposes $ 2,074,744 $ 1,808,460 $ 3,883,204
103
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Combining Statement of Assets and Liabilities
Fiduciary Funds (continued)
December 31, 2012
Agency Funds
Public Animal Senior
Flexible Facility Control Center Payroll Total
Spending District Authority Association Clearing Agency
ASSETS
Cash&cash equivalents $ 2,354 $ 73,480 $ 71,090 $ 391 $ 305,788 $ 453,103
Total assets 2,354 73,480 71,090 391 305,788 453,103
LIABILITIES
Accounts payable 2,354 305,788 308,142
Due to other governments 73,480 71,090 391 144,961
Total liabilities $ 2,354 S 73,480 S 71,090 S 391 S 305,788 $ 453,103
104
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Combining Statement of Changes in Net Position
Fiduciary Funds
For The Year Ended December 31, 2012
Other Total
Postemployment Fire Pension and Other
Benefit Pension Postemployment
Trust Trust Benefits
ADDITIONS
Taxes $ 42,979 $ 42,979
Investment earnings
Interest 531 9,901 10,432
Dividends 39,784 50,178 89,962
Net change in fair value of investments 154,570 133,959 288,529
Total additions 194,885 237,017 431,902
DEDUCTIONS
Pension benefits 92,890 92,890
Medical prendur s 110,004 110,004
Administrative expenses 2,800 2,800
Total deductions 110,004 95,690 205,694
Change in net assets 84,881 141,327 226,208
Net position-beginning 1,989,863 1,667,133 3,656,996
Net position-ending $ 2,074,744 $ 1,808,460 $ 3,883,204
105
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended December 31, 2012
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&cash equivalents $ 3,614 $ 157,339 $ 158,599 $ 2,354 $ 62,217 $ 99,123 $ 87,860 $ 73,480
Total assets 3,614 157,339 158,599 2,354 62,217 99,123 87,860 73,480
LIABILITIES
Accounts payable 3,614 157,339 158,599 2,354 -
Due to other governments 62,217 99,123 87,860 73,480
Total liabilities $ 3,614 $ 157,339 $ 158,599 $ 2,354 $ 62,217 $ 99,123 $ 87,860 $ 73,480
106
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Animal Control Authority Senior Center Association
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
$ 75,625 $ 167,998 $ 172,533 $ 71,090 $ 1,683 $ 225 $ 1,517 $ 391
75,625 167,998 172,533 71,090 1,683 225 1,517 391
75,625 167,998 172,533 71,090 1,683 225 1,517 391
$ 75,625 $ 167,998 $ 172,533 $ 71,090 $ 1,683 $ 225 $ 1,517 $ 391
107
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Combining Statement of Changes in Assets and Liabilities
Agency Funds (continued)
For the Year Ended December 31,2012
Payroll Clearing Total Agency Funds
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
ASSETS
Cash&cash equivalents $ 202,784 $28,424,078 $28,321,074 $ 305,788 $ 345,923 $28,848,763 $28,741,583 $ 453,103
Total assets 202,784 28,424,078 28,321,074 305,788 345,923 28,848,763 28,741,583 453,103
LIABILITIES
Accounts payable 202,784 28,424,078 28,321,074 305,788 206,398 28,581,417 28,479,673 308,142
Due to other governments 139,525 267,346 261,910 144,961
Total liabilities $ 202,784 $28,424,078 $28,321,074 $ 305,788 $ 345,923 $28,848,763 $28,741,583 $ 453,103
108
City of Pasco, Washington 2012 Comprehensive .2lnnual pinancial 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 110
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 116
These schedules contain information to help the reader assess the governments
most significant revenue sources.
Debt Capacity 122
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 126
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 130
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.
109
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Net Position by Component
Last Nine Fiscal Years
(accrual basis of accounting)
(amounts express ed in thousands)
Fiscal Year Ended December 31
2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental activities
Net investment in capital assets $38,549 $47,804 $59,050 $74,058 $85,294 $97,602 $122,343 $141,497 $163,582
Restricted for:
Restricted* 4,618 5,734 5,738 3,941 4,005 3,551 383 400
Cemetery(nonespendable) 418
Bicentennial celebration 6
Streets and boulevards 6,489
litter and housing abatement 289
Park development 1,739
Capital improvement 2,259
Economic development 221
General obligation debt 337
Special assessment debt 240
Unrestricted 16,081 15,366 15,944 22,710 23,750 24,111 28,241 30,166 14,616
Total governmental activities net position 59,248 68,904 80,732 100,709 113,049 125,264 150,967 172,063 190,196
Business-type activities
Net investment capital assets 59,694 69,646 93,667 97,635 109,736 1,136,995 124,771 129,532 130,321
Restricted 746 1,321 1,798 842 747 777 - -
Unrestricted 14,174 23,041 6,252 12,611 5,712 12,618 11,400 12,367 14,719
Total business-type activities net position 74,614 94,008 101,717 111,088 116,195 1,150,390 136,171 141,899 145,040
Primary government
Net investment in capital assets 98,243 117,450 152,717 171,694 195,030 211,596 247,114 271,029 293,903
Restricted 5,364 7,055 7,536 4,783 4,752 4,328 383 400 11,998
Unrestricted 30,255 38,407 22,196 35,321 29,462 36,729 39,641 42,533 29,335
Total primary government net assets 8133,862 $162,912 5182,449 $211,798 $229,244 $252,653 $287,138 $313,962 $335,236
110
City of Pasco, `Washington 2012 Comprehensive AnnuaCfinanciaCR.eport
Changes in Net Position
Last Nine Fiscal Years
(accrual basis of accounting)
(amounts expres s ed in thousands)
Fiscal Year Ended December 31
2004 2005 2006 2007 2008 2009 2010 2011 2012
enses
Governmental activities:
General government $7,374 $8,116 $8,889 $9,649 $10,410 $12,059 $6,921 $6,517 $6,730
Public safety 13,056 14,004 16,592 17,214 18,296 18,743 19,419 19,834 20,498
Physical environment 1,548 1,690 2,319 2,137 3,532 3,050 1,900 2,406 2,992
Transportation 3,799 5,944 1,299 4,242 4,331 5,137 7,831 9,836 9,913
Economic environment 819 934 1,647 1,117 1,199 1,385 797 1,041 2,386
Health and human services 46 45 44 40 57 59 1,652 251 421
Culture and recreation 5,408 4,893 4,872 5,713 5,983 6,212 4,724 7,695 8,224
Interest on long term debt 774 714 682 640 587 413 512 517 315
Total governmental activities expenses 32,824 36,340 36,344 40,752 44,395 47,058 43,756 48,097 51,479
Business-type activities
Water 4,289 3,950 5,051 5,180 5,990 6,029 6,538 6,845 6,748
Sewer 5,812 5,878 5,724 6,275 6,316 6,826 6,944 7,922 7,435
Water process reuse 1,417 1,466 1,558 1,503 1,569 1,558 1,444 1,501 1,185
Stormwater 316 377 518 595 607 735 791 959 1,028
Irrigation 356 544 748 936 1,015 1,009 1,045 1,038 1,099
Total business-type activities expenses 12,190 12,215 13,599 14,489 15,497 16,157 16,762 18,265 17,495
Totalprimary government expenses 45,014 48,555 49,943 55,241 59,892 63,215 60,518 66,362 68,974
Proeram revenues
Governmental Activities:
Charges for Services
General government 4,493 4,885 5,529 7,098 6,667 8,982 2,134 1,981 2,575
Public safety 1,455 1,784 1,862 2,263 2,626 3,006 3,684 3,893 4,415
Physical environment 366 675 798 744 836 1,282 499 1,331 1,406
Transportation 93 45 810 491 476 623 1,504 1,795 310
Economic environment 2,007 1,961 1,780 1,579 1,135 1,431 17 1,459 2,734
Health and human services 1,851 30 14
Culture and recreation 1,048 744 583 465 445 480 604 2,161 1,838
Operating grants and contributions 846 1,199 1,045 1,074 376 504 1,448 1,763 1,043
Capital grants and contributions 6,863 6,547 9,244 3,438 14,753 13,283 25,488 25,117 16,144
Total governmental activities programrevenues 17,171 17,840 21,651 17,152 27,314 29,591 37,229 39,530 30,479
Business-type activities
Charges for services 12,153 13,112 14,186 14,307 17,232 18,319 18,148 17,774 18,044
Operating grants and contributions 0 0 0 0 0 0 0 370 412
Capital grants and contributions 9,911 14,203 3,625 6,377 3,254 3,061 4,654 5,671 5,586
Total business-type activities programrevenues 22,064 27,315 17,811 20,684 20,486 21,380 22,802 23,815 24,042
Total primary government programrevenues $39,235 $45,155 $39,462 $37,836 $47,800 $50,971 $60,031 $63,345 $54,521
111
City of Pasco, Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Changes in Net Position
Last Nine Fiscal Years(continued)
(accrual basis of accounting)
(amounts expres s ed in tbous ands)
Fiscal Year Ended December 31
2004 2005 2006 2007 2008 2009 2010 2011 2012
Net(expenses)/revenues
Governmental activities ($15,653) ($18,500) ($14,693) ($23,599) ($17,078) ($17,467) ($6,527) ($8,567) ($21,000)
Business-type activities 9,874 15,100 4,212 6,195 4,504 5,223 6,040 5,550 6,547
Total primary government (5,779) (3,400) (10,481) (17,404) (12,574) (12,244) (487) (3,017) (14,453)
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 6,847 6,658
Sales and use taxes 7,412 7,857 8,226 8,646 8,843 8,000 8,245 9,403 10,284
Occupational utility taxes 6,456 7,100 7,561 7,842 8,689 8,924 8,917 8,914 8,843
Othertaxes 2,838 3,396 3,305 3,729 4,655 4,686 1,738 1,838 2,046
Intergovernmental* 1,663 2,599 3,161
Investment and miscellaneous 2,630 3,365 2,412 2,892 987 852 1,147 691 1,486
Transfers (2,199) 584) 113 846 613 566 (149) 3,439
Total governmental activities 21,836 26,017 26,920 29,729 29,842 29,304 27,641 30,292 35,917
Business-type activities
Investment and miscellaneous 4,105 4,120 3,758 4,184 425 399 1,062 177 33
Transfers 1,378 (58) (183) (866) (613) (566) 149 (3,439)
Total business-type activities 5,483 4,062 3,575 3,318 (188) (167) 1,211 177 (3,406)
Total primary government 27,319 30,079 30,495 33,047 29,654 29,137 28,852 30,469 32,511
Changes in net position**
Governmental activities 6,183 7,517 12,227 6,130 12,764 11,837 21,114 21,725 14,917
Business-type activities 15,357 19,162 7,787 9,513 4,316 5,056 7,251 5,727 3,141
Total primary government $21,540 $26,679 SM014 $15,643 $17.080 $16,893 828,365 527,452 $18,058
*Included with"Other taxes"until2010.
**Beginning Net Posisiton were restated based on priorperiod adjustments recorded in 2010.
112
City of Pasco, `Washington 2012 Comprehensive AnnuaC financiaCR.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
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
2011 6,847 9,403 8,914 1,838 27,002
2012 6,659 10,284 8,843 2,046 27,832
113
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Fund Balance of Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Ended December 31
2004 2005 2006 2007 2008 2009 2010 2011 2012
General fund
Assigned $ 3,208
Restricted
Bi-centennial celebration $ 6
Committed
Landfill claims 401
Assigned
2013 budget appropriation 2,872
Unassigned 8,050 6,264
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 $11,258 $ 9,543
All other governmental funds
Nonspendable
Cemetery permanent fund $ 400 $ 418
Restricted 9,496
Street and boulevard** 6,489
Litter&housing abatement** 288
Park development** 1,739
Capital improvements** 2,260
Economic development** 221
General obligation debt** 337
Special assessment debt** 240
Committed 5,375
Special revenue funds* 1,117
Construction projects* 861
Debt guarantee* 1,033
Unassigned (178) (1,254)
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 $15,093 $13,749
*Prior to GASB 54
*'*Break out not available prior to 2012
114
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Changes in F and B alances of Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
(amounts expres s ed in thousands)
Fiscal Year Ended December 31
2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenue
Taxes $ 20,491 $ 22,196 $ 23,362 $ 24,516 $ 25,716 $ 25,339 $ 24,960 $ 26,832 $ 28,017
Licenses and permits 2,337 2,338 2,116 1,924 1,616 1,860 1,966 1,874 1,862
Intergovernmental revenue 2,628 3,494 10,802 4,719 5,293 4,041 7,929 8,252 4,901
Charges for services 3,887 4,226 4,388 4,738 4,771 5,285 5,502 7,475 9,509
Fines and forfeitures 740 746 829 1,054 1,017 1,063 944 955 891
Investment and miscellaneous 2,453 3,075 2,803 2,734 2,310 2,963 2,930 2,547 2,767
Total revenues 32,536 36,075 44,300 39,685 40,723 40,551 44,231 47,935 47,947
Expenditures
Current:
General government 4,337 4,817 5,026 5,001 5,341 5,847 6,547 6,087 6,381
Public safety 12,734 13,588 15,593 16,820 17,711 18,418 18,820 18,780 19,990
Physical environment 1,246 1,444 1,609 1,825 2,078 2,066 1,855 2,288 2,846
Transportation 1,076 1,104 1,133 1,537 1,536 1,566 2,149 2,447 2,890
Economic environment 461 648 681 745 671 944 54 872 2,137
Health and human services 46 45 44 40 57 59 1,313 210 376
Culture and recreation 3,434 3,464 3,827 4,117 4,279 4,670 4,757 6,402 6,807
Capital outlay* 5,878 8,222 14,188 5,737 7,345 7,718
General government 104 154 193
Public safety 124 35 648
Physical environment 868 7
Transportation 3,441 3,276 3,141
Economic environment 419 657 1,527
Culture and recreation 2,633 369 185
Debt service:
Principal 1,116 1,106 1,120 1,162 1,108 1,249 1,178 1,575 3,308
Interest 774 714 682 640 587 413 512 517 316
Total expenditures 31,102 35,152 43,903 37,624 40,713 42,950 44,774 43,669 50,752
Excess of revenues
over(under)expenditures 1,434 923 397 2,061 10 (2,399) (543) 4,266 (2,805)
Other financina sources(used
Disposition of capital assets 367 41 157 7
Proceeds of general debt 219 795 4,533
Debt refinanced (4,280)
Insurance recoveries 18 30 1 251 (1)
Operating transfers in 4,260 5,322 5,864 4,984 5,094 5,432 6,559 5,229 6,434
Operating transfers out (4,628) (6,068) (5,710) (4,247) (4,542) (4,527) (6,708) (5,229) (6,689)
Total other financing sources(uses) 236 (675) 155 894 559 1,156 645 253 (255)
Net change in fund balances $ 1,670 $ 248 $ 552 $ 2,955 $ 569 $ (1,243) $ 102 $ 4,519 $ (3,060)
Debt services as percentage
of noncapital expenditures 7.5% 6.8% 6.1% 5.7% 5.1% 4.7% 4.5% 5.4% 7.8%
*Break out not available prior to 2010
115
City of Pasco, `Washington 2012 Comprehensive AnnuaC tnanciaCR.eport
Assessed Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Real Property
Fiscal Year Total Taxable Total
Ended Residential Commercial Other Assessed Direct Tax
December 31 Property Property Property Valuation Rate
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
2011 2,216,469 582,468 209,591 3,008,528 2.18
2012 2,323,387 716,283 180,219 3,219,889 2.17
Source: Franklin County Assessor
116
City of Pasco, `Washington 2012 Comprehensive AnnuaC financiaCR.eport
B&O Taxes by Type
Last Ten Fiscal Years
(in thousands of dollars)
(Gross Revenues times 8 1/2% Tax Rate)
Fiscal Year
Ended
December 31 Admissions Cable TV Solid Waste Water Irrigation* Sewer Storm** Reuse** Gas Telephone Electricity Total
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
2011 142 381 530 658 81 636 63 127 809 2,034 3,455 8,916
2012 148 391 536 679 85 647 91 158 707 1,910 3,489 8,841
*Previously included in Water
**Previously included in Sewer
Property Tax Rates
Direct and Overlapping 1 Governments
Last Ten Fiscal Years
Overlapping Rates
City of Pasco County School District
Total direct
Fiscal Year Debt Debt Total Debt Total and
Ended Operating service Total city Operating service county Operating service school Special overlapping
December 31 millage millage millage millage millage millage millage millage millage districts rates
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
2011 1.972 0.212 2.184 1.422 0.216 1.638 4.359 2.286 6.645 0.329 10.796
2012 1.968 0.203 2.171 1.440 0.214 1.654 4.352 2.250 6.602 0.033 10.460
Source: Franklin County Assessors(Property taxbooklet)
I Overlapping rates are those of local and county governments that apply to property owners within the City of Pasco. Not all overlapping rates apply to
all City of Pasco property owners whose property is located within the geographic boundaries of the special district.
117
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Taxable Retail Sales
Last Eight Fiscal Years
Fis cal Year Ended
December 31 City of Pasco 1 Franklin County 2
2005 $858,747,074 $862,138,345
2006 894,155,932 929,717,630
2007 933,196,329 1,057,004,462
2008 957,490,181 1,052,102,171
2009 870,450,609 917,095,762
2010 896,484,942 964,584,879
2011 949,914,894 1,033,145,212
2012 963,390,647 775,704,972 *"
Source: Tax Tools
2 Source: Washington State Department of Revenue
Fourth quarter not available
Principal Property Taxpayers
Current Year and Four Years Prior
Fiscal Year EndedDecember 31
(amounts expressedin thousands)
2012 2008*
Taxable Percentage Taxable Percentage
assessed of total assessed of total
Taxpayer value Rank taxable value Rank taxable
Syngenta Seed Inc $33,970 1 1.02% 0.00%
Pasco Processing LLC 27,530 2 0.82% 31,316 1 1.09%
Bybee Foods LLC 22,965 3 0.69%
Twin City Foods,Inc. 17,970 4 0.54% 22,098 2 0.77%
The Crossing at Chapel Hill 16,085 5 0.48% 16,085 4 0.56%
Broadmoor LLC 15,383 6 0.46% 16,432 3 0.57%
Wal-Mart,Inc 13,745 7 0.41% 13,745 6 0.48%
Reser's Fine Foods,Inc 12,426 8 0.37% 14,400 5 0.50%
Old Standard Life Insurance 11,205 9 0.34% 11,234 10 0.39%
Art Mtg Borrower Propco 10,324 10 0.31%
Skywest Airlines,Inc 13,241 7 0.46%
BNSF Railway Co. 12,255 9 0.43%
Conagra Foods Lamb-Weston,Inc. 12,632 8 0.44%
$181,603 5.44% $163,438 5.69%
Source: Franklin County Assessor's Office
*Oldest comparative information that is available.
118
City of Pasco, `Washington 2012 Comprehensive AnnuaC financiaCR.eport
Principal B&O Taxpayers
Current Year and Eight Years Prior
Fiscal Year Ended December 31
(amounts expressed in thousands)
2012 2004*
Percentage of Percentage
Tax Total Tax Tax of Total Tax
Taxpayer Revenue Rank Revenue Revenue Rank Revenue
Company A $3,489 1 39.46% $2,586 1 39.71%
Company B 639 2 7.23% 407 3 6.25%
Company C 592 3 6.70%
Company D 536 4 6.06% 388 4 5.96%
Company F 409 5 4.63%
Company E 391 6 4.42% 341 5 5.24%
Company G 308 7 3.48% 477 2 7.32%
Company J 201 8 2.27% 109 8 1.67%
Company I 118 9 1.33% 139 7 2.13%
Company N 100 10 1.13%
Company H
Company K 302 6 4.64%
Company L 73 9 1.12%
Company M 71 10 1.09%
$6,783 76.71% $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.
Source:Revenue collection
119
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Top Ten Industries that Generate Sales Tax
Current Year and Six Years Prior
Fiscal Year FndedDecember 31
2012 2006
Sales % of Sales % of
Tax Total Tax Total
Industries Paid Rank Sales Tax Paid Rank Sales Tax
Motor vehicle and parts dealers $1,712,650 1 21.40% $1,553,185 1 20.95%
Wholesale trade,durable goods 707,372 2 8.84% 776,944 2 10.48%
General merchandise stores 525,553 3 6.57% 408,218 5 5.51%
Food services,drinking places 523,201 4 6.54% 338,591 8 4.57%
Specialty trade contractors 414,771 5 5.18% 628,960 3 8.48%
Building material and garden 370,663 6 4.63% 249,406 9 3.36%
Construction of buildings 319,537 7 3.99% 421,800 4 5.69%
Rail Transportation 312,434 8 3.90%
Rental and leasing services 252,633 9 3.16% 357,386 7 4.82%
Telecommunications 245,446 10 3.07% 200,425 10 2.70%
Repair and maintenance
Miscellaneous store retailers 381,601 6 5.15%
Other 2,617,858 32.72% 2,097,093 28.29%
Total $8,002,118 100.00% $ 7,413,609 100.00%
Source:Washington State Department of Revenue taxtools
120
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Collected within the
fiscal year of the levy Total collections to date
Total tax Collections in
Fiscal Year Ended levy for Percentage Subsequent Percentage
December 31 fiscal year Amount of levy years 1 Amount of levy
2003 4,028 3,869 96.1% 54 3,923 97.4%
2004 4,392 4,210 95.9% 88 4,298 97.9%
2005 4,859 4,674 96.2% 186 4,860 100.0%
2006 5,314 5,114 96.2% 194 5,308 99.9%
2007 5,763 5,600 97.2% 160 5,760 99.9%
2008 6,061 5,887 97.1% 156 6,043 99.7%
2009 5,738 5,579 97.2% 159 5,738 100.0%
2010 6,400 6,211 97.0% 113 6,324 98.8%
2011 6,638 6,480 97.6% 81 6,561 98.8%
2012 6,850 6,693 97.7% 0 6,693 97.7%
Source: Franklin County Treasurer's Office Tax Rolls
County provides four prior years and combines five years or more together.
121
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressedin thousands,except per capita amount)
Governmental Activities Business-type Activities
Fiscal Year General External Other Total Percentage
Ended Obligation Special Loans& Water/Sewer Loans Primary of Personal Per
December3l Bonds Assessments Notes Bonds Payable Government Income Capita 1
2003 $15,727 $2,080 $1,464 $17,614 $24,328 $61,213 7.7% $1,629
2004 14,500 1,501 1,487 15,940 23,694 57,122 6.7% 1,399
2005 13,650 2,329 1,291 19,300 22,340 58,910 6.3% 1,333
2006 12,955 3,288 1,228 18,045 20,950 56,466 5.6% 1,186
2007 11,850 2,853 1,051 17,620 19,523 52,897 5.1% 1,054
2008 10,915 120 888 16,245 18,056 46,224 3.9% 884
2009 9,945 120 870 16,549 24,710 52,194 3.6% 958
2010 8,940 785 713 29,125 15,061 54,624 3.4% 970
2011 7,670 785 543 26,240 13,531 48,769 Not available 799
2012 4,710 395 369 24,260 11,956 41,690 Not available 665
Note:Details regarding the City's outstanding debt can be found in the notes and schedules to the financial statements.
This ratio was calculated using population for the applicable fiscal year.
Ratios of General Bonded Debt Outstanding
and Bonded per Capita
Last Ten Fiscal Years
(amounts expressedin thousands,except per capita amount)
Percentage of
Fiscal Year General Less:Amounts estimated actual
Ended obligations available in debt taxable value I Per
December 31 bonds service fund Total of property capita 2
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
2011 7,670 1,487 6,183 0.21% 101
2012 4,710 1,494 3,216 0.10% 51
Note:Details regarding the City's outstanding debt can be found in the notes and schedules statements.
to the financial statements.
I See the schedule of assessed value taxable property on page 116 for property value data.
2 See schedule of population on page 126
122
City of Pasco, Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Legal Debt Margin
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year Ended December 31
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Debt lunit $32,602 $44,496 $49,691 $57,846 $62,079 $72,012 $73,370 $72,923 $75,213 $80,378
Total net debt applicable to limit 17,734 11,894 16,204 15,341 10,470 13,252 12,501 11.954 11,670 8,588
Legal debt margin $14,868 $32,602 $33,487 $41505 $51,609 $58,760 $60,869 $607969 $63,543 $71,790
Total net debt applicable to the limit as a 54.40% 26.73% 32.61% 26.52% 16.87% 18.40% 17.04% 16.39% 15.52% 10.68%
percentage of debt limit
Legal debt margin calculation for fiscal year 2011
Assessed value $3,215,100
GENERAL PURPPOSES
Limit of 2.5%of Assessed Value $80,378
Councilmanic:
Capacity(1.5%ofAssessed Value) 48,227
Less:
GO Bonds Outstanding (3,235)
State LOCAL Loans (82)
TRAC Obligation (99)
Airport Fire Station (35)
Compensated Absences (1,927)
OPEB (1,695)
Total debt (7,073)
Remaining capacity without a vote 41,154
Voter Approved-
Capacity(1.0%ofAssessed Value) 32,151
Less:
Sourrces: GO Bonds Outstanding (1,515)
Franklin County Assessors Office-(Steve Marks)* Remaining capacity with a vote 30,636
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 exrtra allowable debt.
The 1.5 percent is the maxium limit 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 ofthe indebtedness available without vote is to be proportionately reduced by the excess'voted"debt over 1 percent.
123
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Pledged-Revenue Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)
WATER/SEWER BONDS
Fiscal Year Ended December 31
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total operating revenues* $10,969 $11,761 $12,758 $13,742 $15,850 $15,929 $17,002 $18,194 $18,671 $18,706
Total operating expenses 4,998 5,302 5,759 6,166 6,550 7,061 8,068 8,202 9,569 11,393
Operating Income 5,971 6,459 6,999 7,576 9,300 8,868 8,934 9,992 9,102 7,313
Total non-operating revenue 1,038 902 1,058 605 615 128
Net Revenue 5,971 6,459 6,999 7,576 10,338 9,770 9,992 10,597 9,717 7,441
Total other source 310 576 382 388 284 275
Special assessment debt service 170 450 261 245 378 21
Non assessment debt service 5,971 6,459 6,999 7,576 10,478 9,896 10,113 10,740 9,623 7,695
Non assement bond debt services 1,671 1,664 1,758 2,061 1,889 1,856 2,119 2,310 3,716 3,022
Debt service coverage 3.57 3.88 3.98 3.68 5.55 5.33 4.77 4.65 2.59 2.55
*Operating revenues exclude revenue raised and used to pay interfund city taxes.
124
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Direct and Overlapping Governmental Activities Debt
As of December 31,2012
(amounts expressed in thousands)
Direct debt Amount
Voted General Obligation $ 600
Councilmanic General Obligation Debt 7,074
Less Amounts Available in Debt Service Funds (337)
Total direct debt 7,337
OverlaoinDebt
Estimated Share of
Jurisdiction Outstanding debt Percent applicable Overlapping Debt
Franklin County 34,850 53.77% 18,739
Pasco School District 122,924 63.75% 78,364
Port of Pasco 8,951 53.97% 4,831
Total overlapping debt 101,934
Total direct&overlapping debt $ 109,271
Governmental activities debt ratios
Assessed valuation-2012(established in November,2011 for the 2012 taxyear) $ 3,215,099
Population 63
Net direct debt to assessed valuation 0.23%
Net direct debt and overlapping debt to assessed valuation 3.40%
Assessed valuation per capita $ 51,033
Net direct debt per capita $ 116
Direct debt and overlapping debt per capita $ 1,734
Councihnanic debt and other obligations consist of: G.O.Bonds Outstanding $ 3,235
State LOCAL Loans 83
T.RA.C.Obligation 99
Airport Fire Station 35
OPEB 1,695
Compensated Absences 1,927
$ 7,074
Voted GO debt: G.O.Bonds Outstanding $ 600
$ 600
(1)Outstanding debt represents total general obligation debt.
(2)Applicable percentage is determined by ratio of assessed valuation of property subject to taxation
in the overlapping unit to valuation of property subject to taxation in the reporting unit.
Source
Franklin County Assessor's Office
Franklin County Assessor's website-taxbooklet
125
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Demographic and Economic Statistics
Last Ten Fiscal Years
Pasco Tri Cities Franklin County
Fiscal Year Per capita Median Median
Ended Unemployment personal household household School
December 31 Population 1 Population 1 rate 3 Population 1 income 2 income 1 age 3-1 enrollment 4
2003 38,437 137,987 8.8% 54,907 21,028 42,117 28.47 10,353
2004 41,842 143,472 7.5% 58,576 20,971 41,309 27.40 11,038
2005 45,846 149,776 7.0% 62,572 21,048 42,256 27.00 11,828
2006 49,439 155,439 7.0% 66,371 21,317 43,187 27.00 12,516
2007 52,555 160,145 6.4% 69,582 20,573 49,337 28.66 12,610
2008 54,993 166,933 10.3% 72,230 22,955 44,797 28.20 13,701
2009 57,579 172,169 7.26% 75,111 26,342 43,754 27.40 14,437
2010 59,781 181,756 7.79% 78,163 Not Available 53,355 Not Available 15,427
2011 61,000 184,755 7.92% 80,500 Not Available 53,644 28.53 16,143
2012 62,670 187,720 8.73% 82,500 Not Available 56,221 Not Available 15,994
State
Fiscal Year Per capita Median School
Ended Average wage Unemployment personal household enrollment
December 31 per job 1 rate 1 Population 1 income 1 income 1 K-12 1
2003 45,365 7.40% 6,126,885 40,783 46,967 1,014,192
2004 45,524 6.20% 6,208,515 42,198 49,585 1,017,594
2005 45,586 5.50% 6,298,816 41,857 50,004 1,025,015
2006 46,643 4.90% 6,420,258 43,855 53,522 1,027,312
2007 47,840 4.50% 6,525,086 45,531 56,141 1,031,846
2008 47,342 5.50% 6,608,245 46,092 57,858 1,025,495
2009 48,079 9.30% 6,672,159 43,630 55,458 1,032,678
2010 49,354 9.900/0 6,724,540 43,638 54,888 1,037,219
2011 Not Available 9.20% 6,767,900 44,294 55,500 1,037,676
2012 Not Available Not Available 6,817,770 Not Available 56,444 1,040,631
SOURCE: -
1 State of Washington Office of Financial Management
2 Washington State University Northwest Income Indicators Project Report-Information is for Franklin County 2002-2008.
Office of Finance Management after 2010
3 State of Washington Employment Security Department (Tri Cities Annual Average)
4 Pasco School District(October Enrollment)ftom2002-2010.Office of Financial management 2011
126
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Principal Employers
Current Year and Prior year
Year Ended December 31
Tri Cities
2012 2011
Emplover Employees Industry Rank Employees Industry Rank
URS 3,500 Government 1 3500 Government 2
CH2M Hill 3,260 Government 2 3260 Goverment 3
ConAgra(Lamb Weston) 3,057 Agriculture Products 3 3057 Agriculture Products 4
Bechtel National 2,850 Goverment 4 2850 Goverment 5
Kadlec Medical Center 2,175 Health Services 5 2175 Health Services 6
Washington River Protection 1,686 Goverment 6 1686 Goverment 8
Mission Support Alliance 1,478 Goverment 7 1478 Goverment 9
Washington Closure Hanford 1,370 Goverment 8
Tyson Foods 1,300 Agriculture Products 9
Energy Nortwest 1,222 Research&Dev/Manufacuring 10
Battelle/PNNL 4485 Research and Development 1
Pasco School District 2065 K-12 Education 7
Kennewick School Dist 1473 K-12 Education 10
Source:TRIDEC
Prior years'information is not available.
Franklin County
2012 2011
Employer Employees Industry Rank Employees Industry Rank
Pasco School District 2,065 K-12 1 2065 K-12 1
Lourdes Health Network 807 Health Care 2 807 Health Care 2
Columbia Basin College 766 Community College 3 766 Community College 3
Boise Cascade 574 Manufacturing 4 571 Manufacturing 4
Pasco processing 350 Food processor-vegetables 5 350 Food processor-vegetables 5
City of Pasco 305 City services 6 305 City services 6
Reser's Fine Foods 230 Food processor-potatoes 7 230 Food processor-potatoes 7
Douglas Fruit 210 Fruit packaging 8 210 Fruit packaging 8
Franklin County 190 County services 9 190 County services 9
West Communication 180 Call Center 10 180 Call Center 10
Source:TRIDEC
* Earliest year information was available
127
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Non-Agriculture Wage and Salary Workers
Employed in Kennewick-Richland-Pas co MSA(000s)(1)
Last light fiscal Years
Fiscal Year Ended Decmeber 31
Employment Sector 2012 Oct-2011 Feb-2010 2009 2008 2007 2006 2005
Goods Producing 12,800 14,800 12,900 12,900 12,900 12,700 11,900 11,600
Natural resources&mining 6,200 7,000 6,100 5,900 6,500 6,600 6,000 5,900
Manufacturing 6,600 7,800 6,800 7,000 6,400 6,100 5,800 5,800
Service providing 84,300 87,000 82,900 82,900 80,700 78,900 74,800 75,300
Private services providing 66,000 68,400 64,800 65,600 63,700 62,500 58,900 59,300
Trade,transportation,warehousing&utilities 17,300 17,200 15,200 15,800 16,700 16,800 16,000 14,900
Retail trade 12,100 11,700 11,700 12,000 11,700 11,900 11,400 10,600
Financial activities 3,600 3,600 3,200 3,300 3,600 3,600 3,500 3,400
Professional&business services 21,000 23,500 22,600 22,700 20,600 20,300 18,500 20,600
Administrative&support services 10,000 10,700 11,400 11,600 9,400 9,800 9,000 10,000
Education&health services 11,400 11,600 10,600 10,700 10,100 9,700 9,200 8,600
Leisure and hospitality 9,100 9,300 8,400 8,500 8,600 8,100 7,900 7,900
Food services 6,700 6,900 6,100 6,200 6,300 6,000 5,600 5,600
Government 18,300 18,600 18,100 17,400 17,000 16,400 16,000 16,000
Federal&State government 4,200 4,300 4,100 3,700 37,000 3,700 3,600 3,600
Local government 14,100 14,300 14,000 13,700 13,300 12,700 12,400 12,400
Total Non-Agriculture 97,100 101,800 95,800 95,800 93,600 91,600 86,700 86,900
Total Private 78,800 83,200 77,700 78,400 76,600 75,200 70,700 70,900
(1)Detail may not add to indicated total due to rounding. Excludes proprietors,agriculture,self-employed,unpaid family,domestic workers and
military. Includes all full and part-time wage and salary workers receiving pay during the period including the 12th of the month by place of work.
Source:Washington State Employment Security Department.
128
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Building Permits
Last Ten Fiscal Years
(amounts expressed in thousands)
Residental Commercial Industrial Total
New New
Fiscal Year Single Single
Ended Family Family Total Total
December 31 Permits Value Permits Value Permits Value Permits Value Permits Value
2003 950 116,700 1,984 121,856 284 37,993 6 487 2,274 160,336
2004 1,056 146,031 2,075 151,345 395 43,342 4 1,098 2,474 195,785
2005 1,027 165,638 2,192 170,760 350 38,874 7 2,300 2,549 211,934
2006 744 133,250 1,869 139,835 343 41,064 34 21,384 2,246 202,283
2007 524 106,192 1,576 106,191 269 68,417 41 13,153 1,886 187,761
2008 404 77,891 1,403 82,934 227 17,494 47 22,554 1,677 122,982
2009 476 96,228 1,499 102,110 261 43,189 90 16,799 1,850 162,098
2010 544 111,392 1,908 119,197 234 31,251 45 7,324 2,187 157,772
2011 492 105,577 1,817 113,320 289 16,591 28 3,519 2,134 133,430
2012 338 72,768 1,507 85,314 328 30,317 54 26,360 1,889 141,991
SOURCE:
I City of Pasco website Building Permit History.
2 Includes single family and mobile home
129
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Fiscal Year Ended December 31
Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General government 44 42 47 47 49 51 52 46 45 45
Public safety
Muni Court 12 13 13 13 14 14 14 15 16 16
Police
Officers 51 55 62 62 64 66 69 67 67 67
Civilians 10 10 11 12 11 II 11 11 12 12
Fire
Firefighters and officers 31 31 34 34 34 34 34 34 33 33
Ambulance 15 15 15 15 15 15 15 16 18 19
Physical enviroment
Utilities
Water 17 17 17 18 18 20 22 22 22 21
Sewer 14 14 14 14 15 17 18 18 18 17
Waterprocess reuse 3 3 3 3 3 3 3 3 2 2
Stormwater 3 4 4 4 4 4 4 4 5 5
Irrigation 1 2 2 2 2 2 2 2 2 2
Transportation
Highways and streets
Engineering 12 12 13 15 14 14 13 13 13 14
Maintenance 6 6 7 7 7 7 7 7 7 7
Health and human services 2 2 2 2 2 2 2 2 3
Economic enviroment 10 11 12 12 15 14 17 15 15 15
Culture and recreation 11 14 15 15 16 17 16 16 16 16
Total 240 251 271 275 283 291 299 291 293 294
Source:Annual Operating Budget
130
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Operating Inclicators by Function
Last ten fiscal years
Fiscal year
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Function
Public Safety
Police
Violent crime 105 142 98 160 150 166 217 183 202 178
Nonviolent crime 1,519 1,712 2,021 1,795 1,817 1,688 1,525 1,475 1,609 1,711
Calls for service 31,740 34,556 45,835 46,095 49,191 54,061 55,672 52,116 49,819 52,027
Victims per 1000 population 43 45 47 41 39 35 32 29 30 30
Fire&Emergency Medical Service
Number of emergency reponse-FIRE N/A N/A 416 429 428 233 238 215 278 261
%of total incidnets-FIRE 100/0 6% 6%
Number of emergency reponse-EMS N/A N/A 2,462 2,485 2,586 3,316 3,005 3,016 3,337 3,474
%of total incidents-EMS 90°/u 79% 79%
Number of emergency reponse-OTHER 620 664
%of total incidents-OTHER 15% 15%
Community Development
Number of new Single Family units 872 1,031 1,008 729 518 398 467 530 483 314
Number of new Muli Family units 0 1 0 0 0 0 0 8 1 16
Number of new Manufactured units 78 25 19 15 6 6 9 14 9 21
Conmiercialpermits 290 399 357 377 310 274 351 279 317 382
Construction value(millions) 38.5 44.4 41.1 62.4 81.6 40.0 60.0 38.6 20.1 56.7
Residential permits 1,984 2,075 2,192 1,869 1,576 1,403 1,499 1,908 1,817 1,507
Construction value(millions) 121.9 151.3 170.8 139.8 106.2 82.9 102.1 119.2 113.3 85.3
Physical enviroment
Highway and streets
Street resurfacing(miles) 4.6
Utilities
Water
Bills processed 134,693 144,627 151,515 165,165 177,195 189,061 194,614 202,136 207,685 217,911
New connections 1,070 1,331 1,246 838 734 543 631 666 571 449
Water meters replaced 26 43 104 88 75 78 73 1,842 1,900 2,640
Source:Various government departments.
131
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
Capital Used by)unction
Last Ten Fiscal Years
Fiscal Year Ended December 31
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Function
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Patmlunits 30 30 34 34 35 37 43 43 50 52
Fire stations 3 3 3 3 3 3 3 3 3 3
Culture and recreation
Parks* 40 41
Parks acreage* 274 280
Swimming pools 3 3 3 3 3 3 3 3 3 3
Physical enviroment
Streets
Street(miles) 203 212 225 238 302 392 475 619 781 821
Street lights 2,613 2,753 2,905 3,074 3,138 3,172 3,222 3,290 3,374 3,449
Traffic signals** 33 38 42 44 49 50
Water
Water mains(miles) 249 259 274 289 292 298 302 306 309 313
Services(accurn Total) 12,276 12,983 14,002 15,021 15,335 15,508 15,748 16,081 16,305 16,660
Fire hydrants 1,499 1,595 1,741 1,887 1,916 1,966 1,997 2,036 2,069 2,106
Maximum daily capacity(MGD) 29 29 29 29 29 29 29 33 33 30
Sewer
Sanitary sewer(miles) 175.2 185.3 195.4 206.5 209.5 216.2 219.8 224 226 264
Maximum daily treatment capacity
(M®)* 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1
Average daily treatment(MGD)* 3.2 3.1 3.3 3.6 3.9 4.0 4.1
Water Process Reuse
Irrigated acres 1,848 1,848 1,848 1,848 1,848 1,848 1,848 1,848 1,848 1,848
Total Acres 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200
Storm Water
Storm sewer(miles) 35 37 39 40 40 40 40 42 43 45
Number of catch basins 1,987 2,150 2,407 2,664 2,738 2,801 2,878 3,089 3,176 3,289
Irrigation
Irrigation mains(miles)* 16 29 46 63 67 68 73 80 84 90
Maximum daily capacity(thousand of 1,450 1,450 8,950 9,950 12,300 16,100 17,100 17,100 17,100 17,100
gallons)*
Source:Various government departments.
Note:No capital asset indicators are available for the general government function.
*prior years not available
**some years not available
132
City of Pasco, -Washington 2012 Comprehensive AnnuaCrinanciaCReport
STATE REQUIRED SCHEDULES
133
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
MCAGNO.0292
SCHEDULE 9-LONG TERM DEBT
For the Year Ended December 31,2012
Maturity/
BARS code for Payment Beginning BARS code for Ending
Outstandine IDNo. Description Due Date Balance Additions Reductions Redemption of debt Balance
DEBT/LIABtLMES RELATED TO GOVERNMENTAL FUNDS
Councilmanic GO Bonds
850.225153 251.16 2002 LTGO New&Refund 1995 4/1/2022 1,650,000 (1,650,000) 010.905.59151.571060
850.225153 251.16 2002 LTGO New&Refund 1995 4/1/2022 460,000 (460,000) 195.960.59151.571012 -
850.225155 251.16 2011 LTGO Refund 2001 LTGO 12/1/2020 4,045,000 (400,000) 010.905.59151.571061 3,645,000
Total Councilmanic 3,645,000
Voted-GO Bonds
850.225151 251.14 1999 UTGO Library&Fire Station 12/1/2019 800,000 (100,000) 272.980.59151.571020 700,000
850.225154 251.12 2002 ULTGO Ref Civic Ctr City Hall 2/1/2013 715,000 (350,000) 273.980.59151.571020 365,000
Total Voted-Capital Facilities 1,065,000
Other Debt
'850.226362 263.81 2002 State LOCAL-Animal Control Facililty Land 12/1/2016 120,063 (18,494) 010.905.59151.575002 101,569
'850.226364 263.81 2009 State LOCAL-Police Vehicle Computers 6/1/2013 78,077 (51,603) 010.905.59151.575004 26,474
'850.226384 263.81 2006 Port Airport Fire Building 7/12/2016 60,963 (12,366) 010.905.59151.579092 48,597
'850.226383 263.81 1998TRACLoan 12/1/2014 283,448 (91,034) 191.961.59151.579090 192,414
Total Other Debt 369,054
850.223150 Compensated Absences(259.11) 1,738,622 1,636,578 (1,448,095) Total Comp Absences 1,927,105
'850.226390 OPEB Related Liabilities(263.93) 1,149,251 1,077,003 (531,105) Total OPEB 1,695,149
See Special Assessment Below 395,014
TOTAL GOVERNMENTAL ACTIVITIES PER FOOTNOTE 9,096,322
DEBT/LIABn1TIFS RELATED TO GOVERNMENTAL FUNDS
Revenue Bonds-Nonwted
410.225247 252.11 2002 Rev Bond Water 46.10% 12/1/2022 1,735,665 (126,775) 410.760.58241.572010 1,608,890
'410.225247 252.11 2002 Rev Bond Sewer 38.50% 12/1/2022 1,449,525 (105,875) 410.770.58241.572010 1,343,650
'410.225247 252.11 2002 Rev Bond Irrigation 15.40% 12/1/2022 579,810 (42,350) 410.795.58241.572010 537,460
'410.225248 252.11 2005 Rev Bond Water/Sewer 9/1/2025 3,385,000 (185,000) 410.760.58241.572010 3,200,000
'410.225250 252.11 2009 Revenue Bond Water Plant 11/1/2029 8,510,000 (340,000) 410.760.58241.572010 8,170,000
410.225252 252.11 2010A50°%Water New 6/1/2029 3,020,000 (120,000) 410.760.58241.572010 2,900,000
'410.225252 252.11 2010A50%Sewer New 6/1/2029 3,020,000 (120,000) 410.770.58241.572010 2,900,000
'410.225252 252.11 2010ARef98B Water 20.48% 6/1/2029 437,248 (142,336) 410.760.58241.572010 294,912
`410.225252 252.11 2010A Ref9813 Sewer.88% 6/1/2029 18,788 (6,116) 410.770.58241.572010 12,672
'410.225252 252.11 2010A Ref 1998B PWRF 78.64% 6/1/2029 1,678,964 (546,548) 410.775.58241.572010 1,132,416
'410.225253 252.11 2010T Refund 98 A PWRF 6/1/2018 1,110,000 (135,000) 410.775.58241.572010 975,000
Total Revenue Bonds 23,075,000
External Notes&Loans-Nonwted
'410.226380 263.82 Sewer Pollution Control Facility PWTF 95-025 7/1/2015 172,045 (43,011) 410.770.58241.579090 129,034
'410.226380 263.82 West Pasco Water System PWTF 95-026 7/1/2015 429,501 (107,375) 410.760.58241.579090 322,126
'410.226380 263.82 Riverview Trunk/SE Sewer PW00-043 7/1/2020 1,000,263 (111,140) 410.770.58241.579090 889,123
'410.226381 263.82 Sewer Treatment Plant Phase 1&2 SRF Loan 7/31/2020 11,929,171 - (1,313,831) 410.770.58241.579090 10,615,340
Total External Loans 11,955,623
ComMnsatedAbsences(259.11) 387,753 425,618 (368,049) 445,322
See Special Assessment Below 1,185,000
TOTAL BUSINESS ACTIVITIES PER FOOTNOTE 36,660,945
Governmental Special Assessment-Debt w/Commitment
850.225311 253.12 2010 LID 145-A Street Improvements 11/15/2020 480,000 (160,000) 245.980.59195.573010 320,000
'850.226380 253.12 2011 LID 146&Pension Fund Note 5/1/2021 89,351 (14,337) 246.980.59151.579010 75,014
Total Gov't Spec Assess w/Commitment 395,014
Business Special Assessment-Debt w/Commitment
410.225249 253.12 2007 ULID 141&142-Sewer 9/1/2022 515,000 (50,000) 410.770.58241.572010 465,000
410.225250 253.12 2009ULID143-Sewer 11/1/2029 780,000 (60,000) 410.770.58241.572010 720,000
Total Business Spec Assess w/Commitment 1,185,000
134
City of Pasco, `Washington 2012 Comprehensive AnnuaCfinanciaCR.eport
MCAG NO.0292
S CH®ULE 10-LEWTATION OF INDEBTEDNES S
For the Year Ended December 31,2012
Property Valuation for 2012 Taxes* $ 3,215,099,668
GENERAL PURPOSES
Limit of 2.5%of Assessed Value
Councilmanic:
Capacity(1.5%of Assessed value) 48,226,495
Less:
CLO.Bonds Outstanding $ 3,235,000
State LOCAL Loans 82,870
T.RA.C.Obligation 99,310
Airport Fire Station 35,727
OPEB 1,695,149
Compensated Absences 1,927,105
Outstanding Debt 7,075,161
Remaining debt capacity witout a Note 41,151,334
Voter-Approved:
Capacity(1.0%of Assessed Value) 32,150,997
Less:
G.O.Bonds Outstanding 600,000
Outstanding Debt 600,000
Remaining debt capacity with a vote 31,550,997
UTHIFY PURPOS ES
Voter-Approved:
Capacity(2.5%ofAssessed Value) 80,377,492
Remaining debt capacity-Utility Purpose,Noted 80,377,492
OPEN SPACEAND PARKFACILITI>i4
Voter-Approved:
Capacity(2.5%of Assessed Value) 80,377,492
Remaining debt capacity-Open Space Park&Facilites,Noted 80,377,492
* Source Franklin County Tax Collection Book
135
City of Pasco. Washington 2012 Comprehensive AnnuaCrtnancialReport
MCAG NO.0292
SCHEDULE 16-SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31,2012
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
2012 Aging&Long Term Care(Foot Care) 93.044 MOD N01 $ 17,971 $ 17,971
2012 Aging&Long Term Care(Foot Care) 93.043 MOD N01 3,118 3,118
Total US Dept of Health&Human Services 21,089 21,089
US Department of Homeland Security
Pass through Federal Emergency Management
2011-2012 Assisstance to Firefighters(FEMA) 97.044 EMW-2010-FO-03221 6,966 6,966
Total US Department of Homeland Security 6,966 - 6,966
US Department of Energy
(ARRA)2009-2012 Energy Efficency Conservation 81.128 DE-SC0002086 26,347 26,347
Total US Department of Energy - 26,347 26,347
US Department of Housing&Urban Development
Community Development Block Grant/Entitlement Grant 14.218 B-10-MC-53-009 745,815 745,815
Pass Through Washington Department of Commerce
Neighborhood Stabilization Plan 14.228 08-F6401-014 23,166 23,166
Total US Department of Housing&Urban Development 23,166 745,815 768,981
US Department of Justice
Bullet Proof Vest Partnership 16.607 5,363 5,363
Pass Through from City of Kennewick
2011-2012 Project Safe Neighborhood 16.609 F11-34023-001 7,252 7,252
Pass Through from Department of Commerce
2012 STOP Violence Against Women 16.588 F11-31103-041 35,236 35,236
Violence Against Women Formula Grant 16.588 2010-WF-AX0021 964 964
Pass Through from METRO Drug Task Force
2011-2012 Edward Byrne Formula(Metro) 16.738 M11-34021-012 53,564 53,564
2012-2013 Edward Byrne Formula(Metro) 16.738 M12-34021-012 45,468 45,468
Total US Dept of Justice 142,484 5,363 147,847
US Department of Transportation-National Highway Traffic Safety Administration
Pass through Washington Association of Sherriff&Police Commission
WASPC Traffic Safety Equipment 20.600 940 940
Pass throuqh Washington Traffic Safety Commission
2011-2013 Target ZERO Task Force 20.600 CP12-03 12,622 12,622
2011-2012 Impaired Driving 20.600 2,374 2,374
2012-2013 Impaired Driving 20.601 554 554
2011-2012 CIOTClick-it-or-Ticket(WTSC) 20.602 1,711 1,711
Total US Dept of Transportation NHTSA 18,201 18,201
US Department of Transportation/Federal Highway Administration
Pass through Washington Department of Transportation
2011 STP Grant Overlays 20.205 STPD-STPUS-HLP-3530(006) 12,733 12,733
Lewis Street Overpass 20.205 STPUS-HLP-3530(006)&LA-7055 1,402 1,402
Total US Dept.of Transportation Federal Highway Administration 14,135 14,135
TOTAL FEDERAL AWARDS EXPENDED: $ 226,041 $ 777,525 $ 1,003,566
136
City of Pasco, Washington 2012 Comprehensive AnnuaCrtnancialReport
MCAG NO. 0292
CITY OF PASCO
SCHEDULE 16-SCHEDULE OF STATE AND LOCAL FINANCIAL ASSISTANCE
For the Year Ended December 31, 2012
Grantor/ Other
Pass-Through Grantor Identification STATE
Program Title Number AWARDS
Washington State Senior Citizens
Pass through Yakima County, Office of Aging &Long Term Care
2012 Aging& Long Term Care(Foot Care) MOD N01 $ 3,778
Total Washington State Senior Citizens 3,778
Washington State Transportation Improvement board
4TH Ave South Street Improvements WA-03414 685,166
Total Transportation Improvement board 685,166
Washington State Traffic Safety Commission
School Zone Flasher/Retrofits 11,500
2011-2013 Target ZERO Task Force CP12-03 30,266
Total Traffic Safety Commission 41,766
Washington State Department of Transportation
Lewis Street Overpass STPUS-HLP-3530(006)& LA-7055 421
Total Washington State Department of Transportation 421
Washington State Department of Ecology
Columbia Water Supply Project C1200160 250,421
Stormwater Capacity Grant G1100081 FY 12 8,152
USBR Irrigation Connection C1200160 146,967
Total Washington State Department of Ecology 405,540
Washington State Patrol
2011-2012 Basic Fire Fighter Training Program C120274GSC 6,951
Total Washington State Patrol 6,951
Washington Auto Theft Prevention
Pass through Washington association of Sheriffs and Police Chiefs
WA Autotheft Prevention Authority 11-13-GG-WATPA-009 6,601
Total Washington State Patrol 6,601
Washington Department of Commerce
Pass through Metro Task Force
2011-2012 Edward Byrne Formula(Metro) M11-34021-012 10,971
2012-2013 Edward Byrne Formula(Metro) M12-34021-012 8,024
Total Washington Department of Commerce 18,995
Department of Health &Human Services
Prehospital Participation Grant 303-GLA-70.168 1,534
1,534
TOTAL STATE AND LOCAL ASSISTANCE: $1,170,752
137
City of Pasco, `WashinWton 2012 Comprehensive .2lnnuaC pkanciaCR.eport
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 2012 for the rehab loan
program. There were no repayments of rehab loan principal and interest for the year.
The City participates in the Neighborhood Stabilization Program for recovering foreclosed properties
which are rehabilitated and sold as low-income housing. Under this federal pass-through grant, the sale
of low-income homes by the City is considered program revenues (income) and costs of rehabilitating
homes and purchase of properties are considered expenditures. In 2012, property was sold, which
generated $74,930 in program revenue.
The City also participates in the HUD HOME Program for low-income individuals, as part of a regional
consortium administered through the City of Richland. The city of Richland is recognized as the lead
agency for the consortium and all grant accounting is reported by the City of Richland.
138
Cit-y of Pasco, -WashftWton 2012 Comprehensive Annualginanc%alR.eport
MCAG NO. 0292
SCHEDULE 19- LABOR RELATIONS CONSULTANTS
For the Year Ended December 31, 2012
Has your government engaged labor relations consultants? X Yes No
If yes, please provide the following information for each consultant(s):
Name of Firm: Name of Firm:
The Wesley Group The Summit Law
Name of Consultant: Name of Consultant:
Kevin Wesley Elizabeth Kennar, consultant
Business Address: Business Address:
P.O. Box 7164 315 Fifth Avenue South Suite 1000
Kennewick, WA 99336-0616 Seattle, WA 98104
Amount Paid To Consultant During Fiscal Year. Amount Paid To Consultant During Fiscal Year.
$15,055.00 $908.00 pd by HR to consultant
Terms And Consitions, As Applicable, Including: Terms And Consitions, As Applicable, Including:
Rates (E.G., Hourly, Etc.): $100 per hour Rates (E.G., Hourly, Etc.): $280 per hour
Maximum Compensation Allowed: 0 Maximum Compensation Allowed: 0
Duration Of Seniices: Various throughout the year.
Services Provided: Union Bargaining Assistance-Wesley
Human Resources Issues -Kennar
Certified Correct this 13th day of February, 2013
to the best of my knowledge and belief;
Signature
Lyn 21 Ja on
HR ,7r
r
139
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
MCAGNO.0292
SCHEDULE 21-LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31,2012
ProgramManager: Lynne Jackson
Address: 525 N 3rd Ave Pasco Wa 99301
Phone: 509-545-3473
Email: jacksonl(a)pasco-wa.pv
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 self-insure?(Check all that apply)
Liability
Property
X Health and welfare(medical,dental,prescription)
Unemployment compensation
Workers'compensation
Other-please dscribe
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 programofa city.
If so,list the entity or entities:
No Does the entity self-insure as a joint program?(yes orno)
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 programs revenues sufficient to cover the programs expenses(yes or no)
No Did the programuse an acturary to determine its liabilities?(yes or no)
140
City of Pasco, `Washington 2012 Comprehensive AnnuaCTinanciaCR.eport
MCAGNO.0292
SCHEDULE 21-LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31,2012
Third Party Administrator Benefit Management,hie.
Contact Kelli Gerstenkom
Address: PO Box 1090,Great Bend,KS 67530
Phone: 800-290-1368 x2076
Email: kaerstenkomna bnikansas.com
Describe each class of risk the governing body has 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 22,198 21,357 $3,756,067.14
Dental 1,692 1,515 $357,232.66
141
City of Pasco, `Washington 2012 Comprehensive .2lnnuaCTinanciaCR.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
Karen Southwick
Accounting Lead
Karen Conn
Staff Accountant
Cora Large
Staff Accountant
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