HomeMy WebLinkAbout04-23-14 Agenda PacketPasco Public Facilities District
Building Regional Facilities through Community Partnerships
April 23, 2014
4:00 p.m.
Pasco City Hall - Conference Room #1
AGENDA
1. Call to order and roll call
2. Approval of minutes:
* Regular Meeting January 28, 2014
3. Claims Approval:
* ls` Quarter 2014: $103,435.37
4. Financial Report:
* I" Quarter:
• Operating Statement
• Net Assets Statement
5. Old Business:
6. New Business:
* 2013 CAFR
• Treasurer
• Status Report: Regional PFD
7. Other Business:
8. Adjournment
(* indicates documents mailed with agenda)
PUBLIC FACILITIES DISTRICT BOARD
January 28, 2014
MINUTES
Call To Order:
The meeting was called to order at 4:03 p.m., by PFD President Mark Morrissette, in
Conference Room #1 at Pasco City Hall.
Roll Call:
Board Members Present: Spence Jilek, Mark Morrissette, Leonard Dietrich and Craig
Maloney.
Excused absence: John Merk.
Also Present: Gary Crutchfield, PFD Chief Administrative Officer, Stan Strebel, Deputy
City Manager and Lee Kerr, City Attorney.
Visitor: Matt Watkins, President — Tri Cities Public Facilities District
Approval of Minutes:
It was motioned by Dr. Jilek, seconded by Mr. Dietrich, and carried to approve the
minutes of the October 23, 2013 Regular Meeting.
Claims Approval:
Mr. Crutchfield presented fourth quarter Claims History. Following discussion, it was
motioned by Dr. Jilek seconded by Mr. Dietrich and carried to approve payment of fourth
quarter claims in the total amount of $69,535.67.
Financial Report:
Mr. Crutchfield presented the fourth quarter Operating Statement reflecting Total Sources of
Funds $358,052 and Total Uses of Funds $353,776. The fourth quarter Net Assets Statement
was also presented reflecting an actual Net Asset balance of $47,594. Following discussion,
the Financial Report was accepted as presented.
Old Business:
• Convention Center Advisory Board Membership. Mr. Crutchfield stated President
Morrissette at the October 23, 2013 meeting, had requested staff clarify the participation
requirements of Pasco PFD for the Convention Center Advisory Board and report back
to the Pasco PFD board. A copy of the "Interlocal Agreement Providing for the Joint
Development of a Regional Center Serving Communities in the Tri- Cities Region" was
provided to the Board.
PUBLIC FACILITIES DISTRICT BOARD
Minutes — January 28, 2014
Page - 1
President Morrissette shared that he and Mr. Maloney have been appointed by the Pasco
Public Facilities District as representatives and each would have one (1) voting right.
2014 Association of Washington State Public Facilities Districts Membership dues. Mr.
Crutchfield presented the 2014 Membership Dues invoice in the sum of $750.00.
Following discussion, it was motioned by Mr. Dietrich seconded by Mr. Maloney and
carried to pay up to $750.00 for renewal of Membership Dues.
New Business:
• Presentation by Matt Watkins re: RPFD.
President Morrissette introduced Matt Watkins, President — Tri Cities Public Facilities
District.
Mr. Watkins presented the TCRPFD Response Paper dated December 17, 2013 focusing
on Summary of Identified Reasons for the "No" Vote and Options for Future Direction
of Regional PFD. Through the presentation Mr. Watkins shared he will meet with local
PFD'S and citizens to listen and gather father response information regarding "where do
we go from here ?" Mr. Watkins invited the Board members to attend the Tri Cities
Chamber discussion panel (date to be determined).
Other Business
• None provided.
Adjournment:
There being no other business, President Morrissette adjourned the meeting at 5:10 p.m.
Mark Morrissette, President Debra L. Clark, PFD Secretary
PUBLIC FACILITIES DISTRICT BOARD
Minutes — January 28, 2014
Page - 2
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PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE
Year to Date Ending March 31, 2014
REVENUES
Sales Tax
Transfers In - City of Pasco
Interest Income
Total Revenues
EXPENDITURES
Advertising/Publications
Legal Services
Kennewick PFD
Professional Services
Insurance
Administrative Services
Total Expenditures
Net Change in Fund Balances
Beginning Fund Balance, January 1
Ending Fund Balance
Annual
2014 2014
Budget Actual
$ 330,000 $ 89,023
20,000
95 9
$ 350,095 $ 89,032
$ 1,000 $
34
1,000
210
330,000
89,023
20,000
750
2,800
2,798
12,000
3,000
366,800
95,815
(16,705)
(6,783)
47,233
47,524
40,741
$ 30,528 $
\ \au \FwaoC.%ACCOUNTING LEAD (17REASURY)\Report -PASCO PUBLIC FACIL DISTR - DM @014 \Qtr 1 -Mar 2014 Pa PUWC Fa Wy DbWaxbx
PASCO PUBLIC FACILITIES DISTRICT
BALANCESHEET
As Of March 31, 2014
ASSETS
Cash $ 67,688
Sales Tax Receivable 29,212
TOTAL ASSETS 96,900
LIABILITIES
Accounts Payable 56,159
TOTAL LIABILITIES 56,159
TOTAL NET ASSETS $ 40,741
t1nNFin&,ca%CCOUNTWO LEAD (TREASURY)%emn -PASCO PUBLIC FACIL DISTR - DW014VIU 1 -Ma, 2014 Pasco Public Facility DlstncGrlsX
PASCO PUBLIC FACILITIES DISTRICT
Pasco, Washington
ANNUAL FINANICAL STATEMENTS
For the fiscal year ended
December 31, 2013
Prepared by:
Finance Division
Dunyele Mason, CPA — Financial Services Manager
Administrative and Community Services Department
Richard G. Terway — Director
TABLE OF CONTENTS
Directory of Board of Directors .......... ..............................1
Management's Discussion and Analysis . ..............................2
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position ................. ..............................6
Statement of Activities .................... ..............................8
Fund Financial Statements
Balance Sheet — Governmental Fund .. ..............................9
Statement of Revenues, Expenditures and Changes in Fund
Balance — Governmental Fund . ........ .............................10
Statement of Revenues, Expenditures and Changes in Fund
Balance - Governmental Fund Budget To Actual ................11
Notes to the Financial Statements .............. .............................12
Pasco Public Facilities District 2013 Basic Financial Statements
Directory of Board Directors
As of December 31, 2013
APPOINTED DIRECTORS TERM EXPIRES
PRESIDENT
Mark Morrissette 7/14/2016
VICE PRESIDENT
Leonard Dietrich 7/14/2014
SECRETARY/TREASURER
Vacant
DIRECTORS
Spencer Jilek 7/14/2017
John Merk 7/14/2015
Craig Maloney 7/14/2014
Pasco Public Facilities District 2013 Basic Financial Statements
Management's Discussion and Analysis
This management discussion and analysis of the Pasco Public Facilities District's financial
performance provides an overview of the financial activities for the year ended December 31,
2013. Please read it in conjunction with the accompanying basic financial statements and the
notes to the financial statements.
Financial Highlights
The assets of the Pasco Public Facilities District's exceeded its liabilities at December 31,
2013 by $47,524.
• The Pasco Public Facilities District program expenses exceeded its program revenues by
$363,059. General revenues, however, were $367,265 and net assets thereby increased by
$4,206 on the full accrual basis.
The Pasco Public Facilities District total revenues exceeded its total expenses and thereby
increased its ending fund balance by $4,206 on the modified accrual basis.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Pasco Public
Facilities District'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 required 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 Pasco Public Facilities District's
finances in a manner similar to a private- sector business. The Statement of Net Position presents
information on all of the 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 Pasco Public Facilities District 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).
The government -wide financial statements include a single function (classified as culture and
recreation) which is primarily supported by taxes and intergovernmental revenues
(Governmental Activities). The PPFD currently does not have any business -type activities. The
governmental activity of the Pasco Public Facilities District was to provide support to the
Kennewick Convention Center. In addition, the Pasco Public Facilities District conducted some
project concept planning and evaluation work through consultant contracts.
2
Pasco Public Facilities District 2013 Basic Financial Statements
The government -wide financial statements can be found on pages 8 -9 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 Pasco
Public Facilities District like other governments uses fund accounting to ensure and demonstrate
compliance with finance- related legal requirements.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However,
unlike the government -wide financial statements, governmental fund financial statements focus
on near -term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a
government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide statements. By doing
so, readers may better understand the long -term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statements of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The Pasco Public Facilities District maintains just one governmental fund; the general fund.
Information is presented in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures and changes in fund balances. The general fund is a major
fund as defined by the Governmental Accounting Standards Board.
The Pasco Public Facilities District 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 10 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 fund statements. The notes to the financial
statements can be found starting on page 13.
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 Pasco Public Facilities District, assets exceeded liabilities by
$47,524 at the close of the most recent fiscal year. All of the Pasco Public Facilities District's net
position represents working capital (current assets minus current liabilities) as it does not have
any investments in long term capital assets or long term debt obligations. At the end of the
current and prior fiscal years, the PPFD was able to report positive net position. The
government's net position increased by $4,206 during the current fiscal year. This increase
represents the degree to which ongoing revenues have exceeded ongoing expenses. Payables
3
Pasco Public Facilities District 2013 Basic Financial Statements
represent the amount of sales taxes payable to the Kennewick Public Facility District (KPFD),
per interlocal agreement.
Current assets
Current liabilities
Total net position
Pasco Public Facility District Net Position
Governmental Activities Total Primary Government
2013 2012
$107,651 $ 101,541
2013 2012
$ 107,651 $101,541
60,127 58,223 60,127 58,223
$ 47,524 $ 43,318 $ 47,524 $ 43,318
Statement of Activities
The following condensed table of changes in net assets compares the revenues and expenses for
the current year to those of the prior year.
Pasco Public Facility District Changes in Net Position
Program revenues
General revenues
Total revenues
Govemmental Activities
2013 2012
$ 20,000 $ 20,000
367,265 341,394
387,265 361,394
Total Primary Government
2013 2012
$ 20,000 $ 20,000
367,265 341,394
387,265 361,394
Program expenses
383,059
380,105
383,059
380,105
Changes in net position
4,206
(18,711)
4,206
(18,711)
The largest form of revenue is from Sales Tax ($367,162 in 2013 and $341,280 in 2012). The
largest expense is the payment to the KPFD for all of the sales taxes received. The other
expenses are mostly administrative in nature, and continued one -time costs relating to market
analysis and feasibility studies for a potential regional aquatics center.
4
Pasco Public Facilities District 2013 Basic Financial Statements
Financial Analysis of the Government's Funds.
As noted earlier, the Pasco Public Facilities District uses fund accounting to ensure and
demonstrate compliance with finance related legal requirements.
Governmental funds. The focus of the Pasco Public Facilities District's governmental funds is to
provide information on near -tern inflows, outflows and balances of spendable resources. Such
information is useful in assessing the Pasco Public Facilities District financing requirements. In
particular, unrestricted fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Pasco Public Facilities District's only governmental
fund is its general fund. The general fund is the chief operating fund of the Pasco Public
Facilities District and reported an ending fund balance of $47,524; an increase of $4,206 in
comparison with prior year. All of fund balance constitutes unassigned fund balance which is
available for spending at the government's discretion.
As a measure of the general fund's liquidity, it may be useful to compare unrestricted,
unassigned fund balance to total expenditures. This represents 12% of total expenditures. Overall
revenues increased by 7% ($25,871) and total expenditures increased by 1% ($2,954). General
fund revenues were affected by the continued strength in sales activity as the increase was due to
increases in sales tax revenues. The increase in expenditures was also due to increased sales tax
revenue as it was all passed through to the Kennewick Public Facility District per interlocal
agreement. Normally revenues and expenditures would be expected to increase by the same
amount, however, in the prior year there were one -time expenditures related to supporting the
Regional Public Facility District and which were not repeated in the current year.
General Fund Budgetary Highlights
There was no change in appropriations between the original and final amended budget. Actual
expenditures were 106% of both the original and revised budget; actual revenues were 112% of
the original and revised budget. This was due to increased sales tax revenue and the related
KPFD expense of all sales tax received.
Economic Factors and Next Year's Budget
2014's budget was developed using the expectations that 2014 activity would be similar to
2013's actual revenues and expenditures. Special studies expenditures related to the potential Tri
Cities Aquatic Facility were reduced.
Requests for Information
This financial report is designed to provide a general overview of the Pasco Public Facilities
District'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.
5
Pasco Public Facilities District 2013 Basic Financial Statements
BASIC FINANCIAL STATEMENTS
rl
Pasco Public Facilities District 2013 Basic Financial Statements
PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF NET POSITION
As of December 31, 2013
Governmental Total Primary
Activities Government
ASSETS
Cash $ 78,439 $ 78,439
Sales taxes receivable 29,212 29,212
Total assets 107,651 107,651
LIABILI[ IES
Accounts Payable 60,127 60,127
Total Liabilities 60,127 60,127
NET POSITION
Unrestricted 47,524 47,524
Total net position $ 47,524 $ 47,524
The notes to the financial staetments are an integral part of this statement.
7
Pasco Public Facilities District 2013 Basic Financial Statements
PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF ACTIVITIES
For the Year Faded December 31, 2013
The notes to the f xuacal snetmems are an integral part ofdas statement.
E
Charges nr
Opemtaig Capital
Governmental
Total Primary
Fun:a mal program
Expenses Services
Grants Grants
Activities
Government
Primary Govemacut:
Governmental Activities:
Cuhmal & Comma* Activities
$ 383,059 $
$ 20,000 $
$ (363,059)
$ (363,059)
Total GovemmertalAcmiues
383,059
20,000
(363,059)
(363,059)
Total Primary Government
$ 383,059 $
$ 20,000 $
Ge�alrevenrres:
Salestax
367,161
367,161
Investment income
104
104
Total general revenues
367,265
367,265
Change in net position
4,206
4,206
Net position -beg ®g
43,318
43,318
Net position - ending
47,524
47,524
The notes to the f xuacal snetmems are an integral part ofdas statement.
E
Pasco Public Facilities District 2013 Basic Financial Statements
PASCO PUBLIC FACILITIES DISTRICT
BALANCE SHEET
As ofDecember 31, 2013
ASSETS
Cash
Sales taxes receivable
Total assets
LIABILITIES
Accomts Payable
Total Liabilities
FUND BALANCES
Unassigned
Total find balance
78,439
29,212
107,651
60,127
60.127
47,524
$ 47,524
Pasco Public Facilities District 2013 Basic Financial Statements
PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE
Year to Date Priding December 31, 2013
Annual
2013 2013
Budget Actual
I:�/�iJ�.
Sales Tax $ 325,000 $ 367,161
City of Pasco Grant 20,000 20,000
Interest Income 95 104
Total Revenues $ 345,095 $ 387,265
Advertising/Publications
$ 1,000 $
137
Legal Services
1,000
337
Kennewick PFD
325,000
367,161
Professional Services
20,000
820
Insurance
2,800
2,604
Administrative Services
12,000
12,000
TotalExpemiihues
361,800
383,059
Net change in fund balance
(16,705)
4,206
Fund balance - beginning
68,338
43,318
Fund balance - ending
$ 51,633 $
47,524
The notes to the financial staetments are an integral part of this statement.
10
Pasco Public Facilities District 2013 Basic Financial Statements
PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - GENERAL FUND
Year to Date Ending December 31, 2013
REVENUES
Sales Tax
City ofPasco Grant
Interest Income
Total Revenues
EXPENDITURES
Advertising/Publications
Legal Services
Kennewick PFD
Professional Services
Insuaance
Administrative Services
Total Expenditures
Net change m fund balance
Fund balance - beginning
Fund balance - ending
The notes to the financial staet rents are an integral part of this statement.
11
Original
Final
Budget
Budget
Actual
Variance
$
325,000
$
325,000
$
367,161
$ 42,161
20,000
20,000
20,000
-
95
95
104
9
$
345,095
$
345,095
$
387,265
$ 42,170
$
1,000
$
1,000
$
137
$ (863)
1,000
1,000
337
(663)
325,000
325,000
367,161
42,161
20,000
20,000
820
(19,180)
2,800
2,800
2,604
(196)
12,000
12,000
12,000
0
361,800
361,800
383,059
21,259
(16,705)
(16,705)
4,206
20,911
68,338
68,338
43,318
(25,020)
$
51,633
$
51,633
$
47,524
$ (4,109)
The notes to the financial staet rents are an integral part of this statement.
11
Pasco Public Facilities District 2013 Basic Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Pasco Public Facilities District 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 following is a
summary of the more significant policies.
A. Reporting Entity
The Pasco Public Facilities District (PPFD or "District ") was created by the City Council of
the Pasco Public Facilities District by passage of Ordinance No. 3558 on July 15, 2002, to
participate in acquisition, construction, operation, and/or financing of a regional center (as
defined in RCW 35.57) in the Tri- Cities area.
State law, as defined in the Revised Code of Washington (RCW) Chapter 35.57 (the City
PFD Act), authorizes the City Council, as the legislative authority of the City, to create a
public facilities district coextensive with the boundaries of the City for the purposes, among
others, of acquiring, constructing, operating, and financing one or more "Regional Centers"
through cooperative and joint ventures with one or more qualifying public facilities districts.
A Regional Center is defined in the City PFD Act as "...convention, conference, or special
events center, or any combination of facilities, and related parking facilities, serving a
regional population constructed, improved or rehabilitated after July 25, 1999 at a cost of at
least $10,000,000 including debt service."
State law also states a public facilities district created before July 31, 2002 that commences
construction or improvement of a Regional Center before January 1, 2004 may impose, solely
for Regional Center Purposes, a 0.033% sales and use tax. The Sales Tax operates to shift a
share of the State's sales and use tax revenues to the public facilities district at no additional
cost to taxpayers.
The Board of Directors is comprised of 5 members; two members appointed by the City
Council and 3 members appointed by the City Council based on recommendations from local
organizations. The Board then elects a President, a Vice President, and a Secretary /Treasurer.
The initial appointment of the Board called for one - one year term, one - two year term, one -
three year term and two - four year terms. Thereafter, appointments are for four year terms.
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. As there is just one fund, the general fund, there is no interfund activity
in these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business -type activities, which rely
12
Pasco Public Facilities District 2013 Basic Financial Statements
to a significant extent on fees and charges for support. The PPFD had no business -type
activities in the current or prior year.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. PPFD 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.
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. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows.
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.
The PPFD reports the general fund as a major governmental fund. The general fund is the
PPFD's primary operating fund. It accounts for all governmental financial resources.
Amounts reported as program revenues include 1) charges to customers, 2) operating grants
and contributions, and 3) capital grants and contributions. General revenues include all
taxes.
The PPFD does not have a flow of funds policy and therefore utilizes the default provided by
GASB 54 which assumes restricted assets are used before unrestricted assets.
D. Assets, liabilities and equities
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 and include amount invested in the State of Washington's Local
Government Investment pool. This is done via City of Pasco's City Treasurer. The
investments are held in the City of Pasco's name and are recorded in the City accounts as
held on behalf of the PPFD.
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Pasco Public Facilities District 2013 Basic Financial Statements
Receivables and payables
Receivables consist of sales taxes receivable. Payables result from an interlocal agreement
with the Kennewick Public Facility District (KPFD) that all sales tax received will be passed
through to the KPFD.
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).
The committed fund balance classification includes amounts that can be used only for
specific purposes determined 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.
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Pasco Public Facilities District 2013 Basic Financial Statements
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.
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Scope of Budgetary Accounting. Annual appropriated budgets are adopted for the PPFD on
the modified accrual basis of accounting. Annual appropriated budgets are adopted at the
major expenditure category level. Appropriations lapse at year -end. Budgetary accounts are
integrated in fund ledgers for all budgeted funds.
Amending the Budget. When the Board determines it is in the best interest of the PPFD to
increase or decrease the appropriation for a particular item, it may do so with a motion
approved by an affirmative vote of at least three Board members.
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 any authorized amendments.
Budget Compliance. The PPFD expenses exceeded the budget appropriation by $21,259.
The primary source of revenue is sales tax, which is volatile in nature. By contract the total
amount of sales tax received is an expense and was passed through to the Kennewick Public
Facility District even though it exceeded the amount estimated and budgeted.
NOTE 3 — DETAILED NOTES ON ALL FUNDS
A. Deposits and investments
As of December 31, 2013 the government had the following:
Weighted Average
Fair Value Maturities (Years)
Local Government Investment Pool
Total Invested Cash Equivalents $78,439 N/A
Portfolio weighted average maturity
N/A
Interest rate risk. Interest rate risk is the risk that changes in interest rates will adversely
affect the fair value of an investment. The PPFD does not have an investment policy, but
manages its exposure to declines in fair value by limiting investing only in the State of
Washington's Local Government Investment Pool (LGIP).
Credit risk Credit risk is the risk that an issuer or other counterparty to an investment will
not fulfill its obligations. The PPFD does not have an investment policy, but manages its
exposure to credit risk by limiting investing only in the State of Washington's Local
Government Investment Pool.
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Pasco Public Facilities District 2013 Basic Financial Statements
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. The PPFD does not have an
investment policy, but manages its exposure to concentration of credit risk by limiting
investing only in the State of Washington's Local Government Investment Pool. The LGIP
invests in a variety of governmentally issued securities.
Custodial credit risk — deposits. This is the risk that in the event of a bank failure, the
governments' deposits may not be returned. The PPFD does not have a deposit policy, but
manages its exposure to custodial risk by investing 100% of its fund in the State of
Washington's Local Government Investment Pool and therefore does not maintain any
deposits in a bank.
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 PPFD does not
have a custodial credit risk policy, but manages its exposure by investing 100% of its fund in
the State of Washington's Local Government Investment Pool.
B. Receivables and payables
Taxes receivable. The PPFD received sales tax distributions from the State of Washington in
2014 from sales that occurred in 2013. The State receives the sales tax, and then distributes
the appropriate portion of the tax the following month to the local governmental entities. As
receivables are recognized when earned, the sales taxes from underlying sales transactions are
recognized as receivables. Per the inter -local agreement, 100% of the sales tax received is
owed to Kennewick Public Facility District (KPFD). Sales taxes are received on the last day
of the month, creating a payable which is then paid to KPFD during the next month.
NOTE 4 - OTHER INFORMATION
A. Risk Management
The Pasco Public Facilities District owns no property and does not hire any employees.
Therefore, the PPFD does not carry any insurance other than maintaining coverage for
officials' errors and omissions. ht 2013, there were no policy coverage changes, claims, nor
settlements.
B. Related organization
City of Pasco. Pursuant to RCW 35.57 (the "City PFD Act ") the Pasco Public Facilities
District was formed and created by City of Pasco Ordinance No. 3558 on July 15, 2002,
coextensive with the boundaries of the City of Pasco, with the powers and authority set forth
in the City PFD Act.
All corporate powers of the PPFD are exercised by or under the authority of the PPFD Board;
and the business, property and affairs of the PPFD are managed under the direction of the
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Pasco Pudic Facilities District 2013 Basic Financial Statements
PPFD Board, except as may be otherwise provided in the Charter. The PPFD operates
independently from the City of Pasco.
The PPFD contracts with the City of Pasco to administer its accounting operations, manage
its cash and provide organizational administrative support. Sales tax proceeds are received by
the City for the benefit of the PPFD. The City Treasurer disburses funds on behalf of the
PPFD and invests any surplus amounts commingled with City investments. Separate
accounts are maintained within the City to designate and hold separately amounts on behalf
of the PPFD.
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