HomeMy WebLinkAbout2013 ACFR
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF PASCO, WASHINGTON
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
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ……………………………………………………………………………….. 1
Certificate of Achievement for Excellence in Financial Reporting………………………………… 6
Organizational Chart ………………………………………………………………………………. 7
Directory of City Officials and Management Team……………………………………………….. 8
FINANCIAL SECTION
Independent Auditor’s Report ………………………………………………………………...…… 9
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-
General Fund…………………………………………………………………………………. 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 the Financial Statements….…………………….…………………………….……………. 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 ………………………….. 84
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
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
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Debt Service Funds……………………………………………………………….. 95
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
TABLE OF CONTENTS (continued)
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual
Major Construction Fund.…………………….……………………………………………… 96
Schedule of Revenues and Expenditures–Budget to Actual–Nonmajor Other Governmental
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
Net Position by Component……………………............................................................................ 110
Changes in 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 B&O 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
Legal Debt Margin……………………………............................................................................. 123
Direct and Overlapping Governments Activities Debt………………………………………...... 124
Waterworks Utility Debt Service Coverage……........................................................................... 125
Demographic and Economic Information
Demographic and Economic Statistics.......................................................................................... 126
Principal Employers…………………………………………...................................................... 127
Non Agriculture Wage and Salary Workers…………………………………………………….. 128
Building Permits………………………………………………………………………………… 129
Operating Information
Full Time Equivalent City Government Employees by Function…………………………........ 130
Operating Indicators by Function………………………………………………………………. 131
Capital used by Function……………………………………………………………………….. 132
Waterworks Utility Customers…………………………………..…..…………………………. 133
Waterworks Utility Rates………………………………………………………………………. 134
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
STATE REQUIRED SCHEDULES
Schedule 9 - Long-Term Debt - L.I.D. Assessments & General Obligations and Revenue ……….. 137
Schedule 16 - Expenditures of Federal, State and Local Financial Assistance…………………….. 138
Notes to Schedule of Expenditures of Federal, State and Local Financial Assistance………….….. 140
Schedule 19 - Labor Relations Consultants………………………………………………………… 141
Schedule 21 – Local Government Risk Assumption………………………………………………. 142
Acknowledgements ………………………………………………………………………………... 144
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
“Appreciation is a wonderful thing; it makes what is excellent in others
belong to us as well.”
Voltaire
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
1
6/24/2014
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, 2013. 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, 2013.
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, 2013 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, 2013 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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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The independent audit of the financial statement information for the year ended December 31,
2013 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 2013 the city’ population is
estimated at 65,600. This represents more than a doubling of 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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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
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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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 2013, the Pasco economy was stable and continued to grow but at a slower pace. The city
issued a total of 2,113 building permits representing approximately $125 million in construction
costs. Of the total permits, 204 were for new single-family residences which equates to $51
million in assessed valuation. The average value of a new home in Pasco was just over $250,000
in 2013. This stable economy was reflected in Standard & Poor’s rating the 2013 utility bond
issue as AA-/Stable.
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 funded 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
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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Municipal Court building as well as fund the construction of a new police station. 2013 was the
first full year for receiving this new revenue source.
Also late in 2012 the city annexed a part of the county. 2014 will be the first year the additional
property taxes will go to the city. The annexed area was in a part of the county already
surrounded by the city so additional revenues are expected without significant increases in annex
related expenditures.
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, 2012. 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
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,
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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2013 ORGANIZATIONAL CHART
PASCO CITY COUNCIL
CITY MANAGER
DEPUTY CITY MANAGER
COMMUNICATION
SPECIALIST HR MANAGER EXECUTIVE SUPPORT STAFF
PASCO CITIZENS
MUNICIPAL COURT JUDGE COMMUNITY & ECONOMIC DEVELOPMENT
DIRECTOR
POLICE CHIEF FIRE CHIEF
PUBLIC WORKS/ENGINEERING DIRECTOR ADMINISTRATIVE & COMMUNITY SERVICES
DIRECTOR
FINANCIAL
SERVICES
MANAGER
FACILITIES
DIVISION
MANAGER
WATER/WW
TREATMENT PLANT
DIV. MANAGER
UTILITY/STREET
MAINTENANCE FIELD
DIV MGR
CITY CLERK
MUNICIPAL
PROSECUTING
ATTORNEY
INFORMATION
SERVICES
MANAGER
RECREATION
SERVICES
MANAGER
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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Elected Officials Length in Position Term Expires
Mayor
Matt Watkins 4 12/31/2015
Council Members
Rebecca M. Francik 16 12/31/2015
Michael Garrison 25 12/31/2017
Robert Hoffman 8 12/31/2017
Tom Larsen 12 12/31/2017
Saul Martinez 4 12/31/2017
Al Yenney 6 12/31/2015
Administrative Officials Length in Position Years of Service
City Manager Gary D. Crutchfield 29 35
Deputy City Manager Stanley R. Strebel 4 15
Public Works Director Ahmad Qayoumi 3 3
Administrative & Community Services Director Richard G. Terway 4 4
Community Development Director Rick White 6 6
Fire Chief Robert W. Gear 5 5
Police Chief Robert W. Metzger 2 2
Municipal Court Judge David L. Petersen 2 2
Management Team
Personnel Manager Lynne Jackson 10 10
Finance Manager Dunyele Mason 3 3
Information Services Manager Jesse Rice 4 16
Recreation Manager Carlene Hanscom 4 4
Facilities Manager Dan Dotta 6 14
Inspection Services Manager Michel Nickolds 15 15
Court Administrator Dorothy R. French 27 30
Captain - ISD James Raymond, Captai 13 31
Captain - Patrol Ken Roske, Captain 9 17
City Engineer Mike Pawlak 2 2
Plant Division Manager Reuel Klempel 9 11
Field Division Manager Jesse U. Greenough 18 18
Construction Manager Kent McCue 6 6
As of December 31, 2013
Directory of City Officials and Managers
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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Believe you can and you’re halfway there.
Theodore Roosevelt
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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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, 2013. 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 $363,169. Of this amount, $30,998 may be used to meet the government’s
ongoing obligations to the citizens and creditors.
• The city’s total net position increased by $27,932. Approximately 13% of that increase is
due to increases in business-type activities and 87% 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 $21,827 a decrease of $1,465 in comparison with the
prior year.
• At the end of the current fiscal year, the unrestricted, unassigned fund balance for the
general fund was $5,612 which also represents 17% of total general fund expenditures.
There was an overall $3,297 decrease in the general fund due to $5,609 in transfers to
other funds. Of these transfers, $3,214 was for one time expenditures primarily devoted
to capital projects.
• Spending on governmental activities included in the Capital Improvement Plan during
2013 totaled $7,103. The largest project was $3,113 for the city’s share of the county’s
construction of a new courthouse facility. Major street projects included $1,138 for street
overlays, $845 to substantially finish the 4th Ave North corridor project started last year
and $212 for the continuing work on the Lewis St overpass project and $239 to start work
on the Oregon Ave widening project. A variety of other street project totaled $560. City
Hall replaced its cooling system for $222 and finished funding the replacement of its
financial software system for $458. The remaining amounts were spent on a fire alerting
system, replacement of playground equipment and replacing a small local pool with
water spray system.
• Spending on business activities included in the Capital Improvement Plan during 2013
totaled $9,862. Water projects totaled $1,069: $239 to finish the new water treatment
plant, $208 for new river water intake access, $539 for water line replacements and $83
for several small projects. The sewer system invested $ 2,112. The largest project was
$1,147 that nearly completes a new lift station to expand utility service to a newly
annexed area to promote further commercial development. $679 was invested in re-lining
of existing sewer pipes to extend their useful life and $286 for plant enhancements and
line extensions. The Process Water Reuse Facility embarked on capacity plant upgrades
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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spending $3,119 in 2013. The USBR Irrigation Connection projected continued with
$1,420 funded primarily by state grants and $24 of costs were incurred for well
rehabilitation projects.
• Private development contributed a total of $28,891 in governmental activity
infrastructure and $959 in utility infrastructure.
• The city did not issue any new governmental debt. Temporary construction financing was
provided internally for LID 149. The utility issued $2,520 in nontaxable revenue bonds to
fund an addition of a new clarifier at the sewer plant. It also issued $7,235 in taxable
revenue bonds to fund the plant upgrades at the process water reuse facility to reimburse
itself for construction costs incurred in 2012 and 2013 as well as to pay for the 2014
construction costs. The upgrades are scheduled to be complete in 2014.
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 fees and charges (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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Pasco, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City of Pasco can be
divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However,
unlike the government-wide financial statements, governmental fund financial statements focus
on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statements of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City of Pasco maintains thirty-one 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 fund balances for the
general fund, which is a major fund as defined by the Governmental Accounting Standards
Board. In 2013 the general fund and the Construction fund were the only major governmental
funds. 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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The enterprise fund financial statements provide separate
information for the water/sewer fund. Data from the other two internal service funds (equipment
maintenance and equipment replacement of utility equipment) are combined into a single,
aggregated presentation in the basic proprietary fund financial statements starting on page 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 $363,169 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 noted 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. 3% of the City of Pasco’s net position represents resources that are subject to
external restrictions on how they may be used. The remaining $30,998 of unrestricted net
position (9%) may be used to meet the government’s ongoing obligations to citizens and
creditors.
2013 2012 2013 2012 2013 2012
Current assets 31.54$ 31.64$ 18.53$ 15.97$ 50.07$ 47.61
Capital and noncurrent assets 194.62 169.76 173.94 167.55 368.56 337.31
Total assets 226.16 201.40 192.47 183.52 418.63 384.92
Current liabilities 5.79 3.86 6.44 5.54 12.23 9.40
Noncurrent liabilities 5.98 7.34 37.25 32.95 43.23 40.29
Total liabilities 11.77 11.20 43.69 38.49 55.46 49.69
Net position:
Investment in capital assets 189.00 163.58 129.66 130.32 318.66 293.90
Restricted 13.51 12.00 - - 13.51 12.00
Unrestricted 11.88 14.62 19.12 14.71 31.00 29.33
Total net position 214.39$ 190.20$ 148.78$ 145.03$ 363.17$ 335.23$
City of Pasco's Net Position (in millions)
Governmental Activities Business Activities Total Primary Government
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
17
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.
The government’s net position increased by $27,932 during the current fiscal year. The increase
represents the degree to which ongoing revenues have exceeded increases in ongoing expenses
mostly through cost containment measures. The increase was mainly from contributions of
infrastructure from private development and other governmental agencies of $28,891.
Governmental activities. Governmental activities increased the City of Pasco’s net position by
$24,193 or 87% of the total change in net position. $28,891 of increase was from contributions
of infrastructure from private and other governmental agencies.
The pace of construction slowed in 2013. The city weathered the general economic challenges
throughout the state with a continued growth of 6% increase in tax revenues. Property tax
revenues continued to grow through increases in new construction, assessed valuation and the
2013 2012 2013 2012 2013 2012
Revenues
Program revenues:
Charges for services 18.31$ 13.29$ 17.99$ 18.03$ 36.30$ 31.32$
Operating grants & contributions 0.64 1.04 0.04 0.41 0.68 1.45
Capital grants & contributions 30.63 16.14 4.22 5.60 34.85 21.74
General revenues:
Property taxes 7.15 6.66 7.15 6.66
Other taxes 22.48 21.17 22.48 21.17
Investment income and miscellaneous 1.71 4.65 0.09 0.03 1.80 4.68
Total revenues 80.92 62.95 22.34 24.07 103.26 87.02
Program expenses:
General government 7.06 6.73 7.06 6.73
Public safety 22.48 20.49 22.48 20.49
Transportation 14.10 12.90 14.10 12.90
Economic environment 4.46 2.81 4.46 2.81
Culture and recreation 8.00 8.22 8.00 8.22
Interest on long term debt 0.27 0.32 0.27 0.32
Water 7.79 6.76 7.79 6.76
Sewer 7.22 7.43 7.22 7.43
Process water reuse 1.54 1.18 1.54 1.18
Storm water 1.17 1.03 1.17 1.03
Irrigation 1.23 1.10 1.23 1.10
Total expenses 56.37 51.47 18.95 17.50 75.32 68.97
Changes in net position 24.55 11.48 3.39 6.57 27.94 18.05
Transfers (0.36) 3.44 0.36 (3.44) - -
Total changes in net position 24.19$ 14.92$ 3.75$ 3.13$ 27.94$ 18.05$
City of Pasco's Change in Net Position (in millions)
Business Activities Total Primary GovernmentGovernmental Activities
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
18
effect of the 2012 annexation. 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 positions. The city was able to fund step increases, bargaining positions received
contractual adjustments; and nonrepresented personnel received a cost of living adjustment in
2013. Without regard to the contributed capital assets, the city’s governmental activity revenue
of $52,029 was $4,343 less than related expenses of $56,372.
GOVERNMENTAL ACTIVITES – REVENUES BY SOURCE
GOVERNMENTAL ACTIVITIES – EXPENSES AND PROGRAM REVENUES
Charges for
services 22%
Operating
Grants &
Contributions
1%
Capital
grants &
contributions
38%
Property
taxes
9 %
Other Taxes
28%
Investment
income and
miscellaneous
2%
Sources of Revenues 2013
Charges for
services
21%
Operating
grants &
contributions
2%
Capital grants
&
contributions
26%Property
taxes
10%
Other taxes
34%
Investment
income and
miscellaneous
7%
Sources of Revenues 2012
-
5.00
10.00
15.00
20.00
25.00
MI
L
L
I
O
N
S
2013 Expense 2013 Revenue 2012 Expense 2012 Revenue
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
19
Business-type activities. 13% of the increase in the City of Pasco’s net position was related to
business-type activities. $959 of the $3,739 increase was from private developer capital
contributions. There were no utility rate changes in 2013 as the city generally increases rates on a
two year cycle. Water monthly base rates increased 30% (from $12.50 to $16.25 for residential)
and stormwater rates increased approximately 13% (from $3.90 to $4.40 for residential) effective
February 1, 2014. Without regard to the private developer contributed capital assets, the city’s
business activity revenues of $21,362 exceeded on-going related expenses of $18,936.
UTILITY ACTIVITIES – EXPENSES AND PROGRAM REVENUES COMPARISON
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.
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
Water Sewer Process Water
Reuse
Stormwater Irrigation
MI
L
L
I
O
N
S
2013 Expense 2013 Revenue 2012 Expense 2012 Revenue
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
20
As of the end of the current fiscal year, the City of Pasco governmental funds reported combined
ending fund balances of $21,827 (a decrease of $1,465 in comparison with prior year).
Approximately 20% of this total amount, $4,424 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 $5,611. As a measure of the general
fund’s liquidity, it may be useful to compare unrestricted, unassigned fund balance to total
expenditures. This represents 17% of total expenditures.
The fund balance of the City of Pasco’s general fund decreased by $3,297 during the current
fiscal year; which is 10% of current year revenues. Overall revenues increased by 6% ($1,892)
and total expenditures increased by 3% ($1,021). General fund tax revenue increased $1,498.
Property taxes increased $282 due to new construction and steady valuations and sales tax
increased $1,187 as the new public safety sales tax was received for all of 2013 versus half of
2012. $122 of natural gas B&O tax shifted to natural gas sales tax as the end user rather than the
gas broker is paying the tax. Electric B&O tax increased $327 due to increase in electric rates
and the effect of the annexation of customers to the city. Offsetting this growth is $112 permit
revenue declines as the pace of new construction starts to slow down, gambling taxes are down
$150 and telephone B&O tax is down $122. Telephone tax continues to decline as customers
move to internet and cell services that are not subject to the telephone tax. Intergovernmental
revenues from state liquor taxes is $102 less as the state chooses to retain a higher percentage.
Charges for services increased about 13% from the prior year; mostly from services rendered to
other funds.
The city was able to maintain status quo on the number of approved personnel positions and
fewer vacant positions were left unfilled in 2013. The city was able to fund step increases, and
there was a general cost of living wage adjustment in 2013 for nonrepresented and management
employees. Union employees were paid per contract terms. The general fund revenues of
$35,908 were more than related expenses of $33,735 before transfers in/out.
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 2013 was $16,682. 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 2013 the utility is well positioned as it has current
assets of $15,985 available to meet its current liability obligations of $6,330 resulting in a
working capital ratio of 2.52. The utility showed income before contributions and transfers of
$52. 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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
21
General Fund Budgetary Highlights
The legal level of appropriation is at the fund level. The budget by function is shown to provide
more detailed information. While total expenditures in the general fund were $124 in excess of
the final budget, this was more than offset by the $694 in transfers out that were budgeted but not
made. There was a change in the total expenditures appropriations between the original and final
amended budget of $1,146 due to increases in the Fire Suppression expenditure budget. $771
was due to a retroactive settlement of the wage contract. $375 was due to over time related to
several employees out on medical disability leave and others filling in with overtime to maintain
minimum staffing requirements. Capital funding authorized in the final budget ($6,303) was only
partially spent ($5,608) in 2013 as the rate of completion for the Municipal Court project did not
occur as quickly as expected.
Actual revenues were 109% of the original revenue budget and 104% of the final revenue
budget. Revenues are generally estimated low in order to protect the city from unanticipated
funding fluctuations. Actual total revenues exceeded actual total expenditures in by $2,173 (6%).
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, 2013 amounts to $318,660 (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 $24,219 for governmental activities and an increase of $3,816 for business-type
activities. $28,891 of governmental assets was donated from private developers in 2013.
Other major capital asset events during the current fiscal year included the following:
• Spending on governmental activities included in the Capital Improvement Plan during
2013 totaled $7,103. The largest project was $3,113 for the city’s share of the county’s
construction of a new courthouse facility. Major street projects included $1,138 for street
overlays, $845 to substantially finish the 4th Ave North corridor project started last year
and $212 for the continuing work on the Lewis St overpass project and $239 to start work
on the Oregon Ave widening project. A variety of other street project totaled $560. City
Hall replaced its cooling system for $222 and finished funding the replacement of its
financial software system for $458. The remaining amounts were spent on a fire alerting
system, replacement of playground equipment and replacing a small local pool with
water spray system.
• Spending on business activities included in the Capital Improvement Plan during 2013
totaled $9,862. Water projects totaled $1,069: $239 to finish the new water treatment
plant, $208 for new river water intake access, $539 for water line replacements and $83
for several small projects. The sewer system invested $ 2,112. The largest project was
$1,147 that nearly completes a new lift station to expand utility service to a newly
annexed area to promote further commercial development. $679 was invested in re-lining
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
22
of existing sewer pipes to extend their useful life and $286 for plant enhancements and
line extensions. The Process Water Reuse Facility embarked on capacity plant upgrades
spending $3,119 in 2013. The USBR Irrigation Connection projected continued with
$1,420 funded primarily by state grants and $24 of costs were incurred for well
rehabilitation projects.
• Private development contributed a total of $28,891 in governmental activity
infrastructure and $959 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.
Long-term debt. At the end of the current fiscal year, the City of Pasco had total bonded debt
outstanding of $34,350. Of this amount $3,995 comprises debt backed by the full faith and credit
of the government. $30,355 of the City of Pasco bonded debt represents bonds secured primarily
by specified revenue resources (i.e. revenue bonds). The city has $160 in special assessment
bonds and $67 of LID note outstanding at the end of 2013; both of which are secured by the LID
Guarantee Fund.
Additional information on the City of Pasco’s long term liabilities can be found in note 4.F.
starting on page 56 of this report.
2013 2012 2013 2012 2013 2012
Land 12.71$ 12.45$ 2.52$ 2.49$ 15.23$ 14.94$
Construction in process 11.33 7.69 7.45 15.51 18.78 23.20
Buildings and structures 23.65 25.02 37.43 31.98 61.08 57.00
Other improvements 4.04 4.63 - - 4.04 4.63
Machinery and equipment 5.32 3.93 8.50 2.20 13.82 6.13
Infrastructure 136.23 115.32 114.46 114.36 250.69 229.68
Total capital assets 193.28$ 169.04$ 170.36$ 166.54$ 363.64$ 335.58$
City of Pasco's Capital Assets at Year-End (in millions)
(Net of Depreciation)
Governmental Activities Total Primary GovernmentBusiness-Type Activities
2013 2012 2013 2012 2013 2012
General Obligation Bonds 3.85$ 4.71$ -$ 3.85$ 4.71$
Special Assessement Bonds 0.16 0.32 0.16 0.32
Loans & Notes 0.28 0.44 10.33 11.96 10.61 12.40
Revenue Bonds 30.36 24.26 30.36 24.26
Total 4.29$ 5.47$ 40.69$ 36.22$ 44.98$ 41.69$
Governmental Activities Total Primary GovernmentBusiness-Type Activities
City of Pasco's Bonds and Notes
(in millions)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
23
Economic Factors and Next Year’s Budgets and Rates (amounts not in thousands)
In 2013, the Pasco economy was stable and continued to grow but at a slower pace. The city
issued a total of 2,113 building permits representing approximately $125 million in construction
costs. Of the total permits, 204 were for new single-family residences which equates to $51
million in assessed valuation. The average value of a new home in Pasco was just over $250,000
in 2013. This stable economy was reflected in Standard & Poor’s rating the 2013 utility bond
issue as AA-/Stable.
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 funded 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. 2013 was the
first full year for receiving this new revenue source.
Also late in 2012 the city annexed a part of the county. 2014 will be the first year the additional
property taxes will go to the city. The annexed area was in a part of the county already
surrounded by the city so additional revenues are expected without significant increases in annex
related expenditures.
Overall, operating revenue to the general fund is expected to grow by $1.5 million next year,
compared to the 2013 budget. Only $100,000 of that growth is expected in retail sales tax. Sales
tax is the largest single-source of general fund revenue and it is also the most volatile. Property
tax is estimated to increase by $445,000; about half due to new investments in the community
and the other half reflect the annexation which took place late in 2012. For the past decade the
city has opted to “bank” the levy capacity rather than increase property taxes by the maximum
legal limit. This has resulted in an accumulated banked levy capacity of $1,762,951.
The 2014 budget adds three new service programs: sidewalks, fire hydrants and industrial pre-
treatment. In response to several injury claims over the past few years a four year sidewalk
replacement program will start. It will be funded with annual $250,000 transfers from Capital
Improvement Fund, LID Guarantee Fund and General Fund existing fund balances. The hydrant
maintenance and addition program is funded by the water fund at $300,000 per year and has
been factored into the six year rate plan. The city has grown in size such that state Department of
Ecology now requires the city to manage industrial pre-treatment permit process rather than the
state. The estimated annual cost of $200,000 per year has been factored into the six year rate
plan.
In 2013 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 2014 the ambulance household charge and transport rates were increased in
an effort to return the General Fund subsidy to the $420,000 in the past for 2014 and the
ambulance rate plan calls for dropping the subsidy down to zero in 2015.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
24
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. Every year the utility updates its six year rate plan. Utility rates
are generally increased every other year. No increases took place in 2013. Effective February 1,
2014, however, water monthly base rates increased 30% (from $12.50 to $16.25 for residential)
and stormwater rates increased approximately 13% (from $3.90 to $4.40 for residential). There
were no changes to the sewer or irrigation rates.
Requests for Information
This financial report is designed to provide a general overview of the City of Pasco’s finances for
all those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to the Financial Services Manager, PO Box 293, Pasco, WA 99301.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
25
BASIC FINANCIAL STATEMENTS
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
26
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash & cash equivalents 22,127,965$ 5,942,785$ 28,070,750$
Restricted cash & cash equivalents:
Contested tax, IBNR, drug forefit 778,059 778,059
Customer deposits 208,042 561,096 769,138
Unspent bond proceeds - 5,614,545 5,614,545
Debt service by vote or covenant 1,324,990 2,986,517 4,311,507
Investments 2,406,602 2,000,000 4,406,602
Receivables (net of allowances):
Taxes 2,231,698 2,231,698
Customers 1,585,514 787,050 2,372,564
Grants 878,831 402,186 1,281,017
Inventories - 234,694 234,694
Total current assets 31,541,701 18,528,873 50,070,574
Noncurrent assets:
Restricted cash - bond reserve - 3,188,801 3,188,801
Restricted cash - cemetery endowment 434,308 434,308
Special assessments & loans 801,175 397,549 1,198,724
Joint Ventures 114,218 114,218
Capital assets not being depreciated:
Land 12,709,885 2,520,925 15,230,810
Construction work in progress 11,328,404 7,445,063 18,773,467
Capital assets net of accumulated depreciation:
Buildings and structures 23,645,146 37,434,680 61,079,826
Other improvements 4,041,084 4,041,084
Machinery and equipment 5,319,592 8,495,822 13,815,414
Infrastructure 136,231,220 114,456,107 250,687,327
Total noncurrent assets 194,625,032 173,938,947 368,563,979
Total assets 226,166,733 192,467,820 418,634,553
LIABILITIES
Current liabilities:
Accounts payable 2,860,912 1,213,255 4,074,167
IBNR payable from restricted assets 549,430 549,430
Deposits payable from restricted assets 208,042 561,096 769,138
Accrued interest payable from restricted assets - 722,505 722,505
Compensated absences - current 1,509,677 368,961 1,878,638
Loans due other governments - current 144,967 1,669,767 1,814,734
Bonds - current 520,000 1,905,000 2,425,000
Total current liabilities 5,793,028 6,440,584 12,233,612
Noncurrent liabilities:
Compensated absences 387,778 134,203 521,981
Net OPEB obligation 1,981,585 1,981,585
Loans due other governments 139,532 8,664,104 8,803,636
Bonds 3,475,000 28,450,000 31,925,000
Total noncurrent liabilities 5,983,895 37,248,307 43,232,202
Total liabilities 11,776,923 43,688,891 55,465,814
NET POSITION
Net investment in capital assets 188,995,832 129,663,726 318,659,558
Restricted for:
Cemetery (nonexpendable)434,308 434,308
Contested tax & drug forefits 228,629 228,629
Streets and boulevards 7,204,780 7,204,780
Litter and housing abatement 328,933 328,933
Park development 1,821,813 1,821,813
Culture and recreation 132,469 132,469
Capital improvement 2,976,167 2,976,167
Economic development 2,797 2,797
Geneneral obligation debt 333,498 333,498
Special assessment debt 47,412 47,412
Unrestricted 11,883,172 19,115,203 30,998,375
Total Net Position 214,389,810$ 148,778,929$ 363,168,739$
- - -
The notes to the financial statements are an integral part of this statement.
Statement of Net Position
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
27
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 7,059,813$ 4,577,718$ (2,482,095)$ (2,482,095)$
Public safety 22,490,976 4,398,052 230,757 (17,862,167) (17,862,167)
Transportation 14,097,649 3,506,524 72,157 30,631,459 20,112,491 20,112,491
Natural & economic environment 4,455,983 3,361,406 314,045 (780,532) (780,532)
Culture and recreation 8,002,806 2,471,205 22,163 (5,509,438) (5,509,438)
Interest on long term debt 265,097 (265,097) (265,097)
Total Governmental Activities 56,372,324 18,314,905 639,122 30,631,459 (6,786,838) - (6,786,838)
Business-type Activities:
Water 7,780,398 7,809,476 1,107,139 1,136,217 1,136,217
Sewer 7,222,994 6,524,393 1,370,596 671,995 671,995
Process Water Reuse 1,541,481 1,454,705 (86,776) (86,776)
Storm Water 1,165,361 1,138,235 41,848 195,087 209,809 209,809
Irrigation 1,226,184 1,049,912 1,541,270 1,364,998 1,364,998
Total Business-Type Activities 18,936,418 17,976,721 41,848 4,214,092 - 3,296,243 3,296,243
Total Primary Government 75,308,742$ 36,291,626$ 680,970$ 34,845,551$ (6,786,838) 3,296,243 (3,490,595)
General Revenues:
Taxes:
Property taxes 7,148,713 7,148,713
Sales taxes 11,472,209 11,472,209
B&O taxes 8,893,603 8,893,603
Excise taxes 2,117,443 2,117,443
Intergovermental 1,566,354 1,566,354
Investment income and miscellaneous 136,621 87,868 224,489
Transfers (355,087) 355,087 -
Total general revenues 30,979,856 442,955 31,422,811
Change in Net Position 24,193,018 3,739,198 27,932,216
Net Position Beginning 190,196,792 145,039,731 335,236,523
Net Position Ending 214,389,810$ 148,778,929$ 363,168,739$
The notes to the financial statements are an integral part of this statement.
Program Revenues
Statement of Activities
For the Year Ended December 31, 2013
Net Revenue (Expenses) and Changes in Net Position
Primary Government
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
28
Other
General Construction Governmental Total
ASSETS
Cash and cash equivalents 1,614,068 1,465,619 15,382,004$ 18,461,691$
Restricted cash
Contested tax & restricted use 228,629 228,629
Customer deposits 180,481 27,561 208,042
Cemetery endowment 434,308 434,308
Investments 1,906,602 500,000 2,406,602
Receivables (net of allowances):
Taxes 1,981,468 250,230 2,231,698
Customers 1,226,542 358,972 1,585,514
Interfund loans 1,265,417 582,482 1,847,899
Grants 20,802 491,993 366,036 878,831
Special assessments & loans 801,175 801,175
Total assets 8,424,009 1,957,612 18,702,768 29,084,389
LIABILITIES
Accounts payable 633,659 1,758,838 363,254 2,755,751
Interfund loans payable 2,037,293 2,037,293
Deposits payable from restricted assets 180,481 27,561 208,042
Total liabilities 814,140 1,758,838 2,428,108 5,001,086
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,364,650 891,398 2,256,048
FUND BALANCES
Nonspendable
Cemetery permanent fund 434,308 434,308
Restricted
Contested tax & drug forefits 228,629 228,629
Street and boulevard 7,204,780 7,204,780
Litter & housing abatement 328,933 328,933
Park development 1,821,813 1,821,813
Cultural and recreation 132,469 132,469
Capital improvements 2,976,167 2,976,167
Economic development 2,797 2,797
Geneneral obligation debt 333,498 333,498
Special assessment debt 47,412 47,412
Committed
Landfill claims 404,795 404,795
Special revenue funds 2,364,608 2,364,608
Construction projects 198,774 198,774
Debt guarantee 924,106 924,106
Unassigned 5,611,795 (1,187,629) 4,424,166
Total fund balances 6,245,219 198,774 15,383,262 21,827,255
Total liabilities, deferred inflows of resources
and fund balances 8,424,009$ 1,957,612$ 18,702,768$
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 funds.190,537,534
Long-term liabilities are not due and payable in the current period and therefore
are not reported in the funds. Proceeds from new debt and repayments of exisiting
debts are recorded as resources and expenditures for fund reporting but are additions
and reductions of liabilities for government wide reporting.(8,158,539)
Other long-term assests are not available to pay for current period expenditures and,therefore, are deferred in the funds.2,256,048
Internal Service funds are used by management to charge the costs of certain
activities to individual funds. The assets and liabilities of some internal service funds
are included in the governmental activities in the statement of net position. Interfund loans 7,927,512
between governmental activities are excluded.
Net position of governmental activities ( see page 26)214,389,810$
The notes to the financial statements are an integral part of this statement.
Balance Sheet
Governmental Funds
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
29
General Other
Fund Construction Governmental Total
REVENUES
Taxes 26,345,139$ 3,256,456$ 29,601,595$
Licenses and permits 1,466,675 309,906 1,776,581
Intergovernmental revenue 1,796,829 1,740,087 2,248,097 5,785,013
Charges for services 4,737,688 6,749,099 11,486,787
Fines and forfeitures 937,047 48,356 985,403
Miscellaneous revenue 624,571 50,000 1,884,134 2,558,705
Total revenues 35,907,949 1,790,087 14,496,048 52,194,084
EXPENDITURES
Current:
General government 6,705,485 - 6,705,485
Public safety 18,675,555 3,689,061 22,364,616
Transportation 1,648,750 2,247,761 3,896,511
Natural & economic environment 1,545,972 2,741,319 4,287,291
Culture and recreation 4,260,846 2,717,220 6,978,066
Capital outlay:
General government 284,409 1,141,334 - 1,425,743
Public safety 12,483 2,713,099 - 2,725,582
Transportation 2,994,371 - 2,994,371
Culture and recreation - 254,247 - 254,247
Debt service:
Principal 468,042 726,527 1,194,569
Interest 133,172 131,925 265,097
Total expenditures 33,734,714 7,103,051 12,253,813 53,091,578
Excess of revenues over (under) expenditures 2,173,235 (5,312,964) 2,242,235 (897,494)
OTHER FINANCING SOURCES (USES)
Transfers in 138,000 4,478,413 2,412,521 7,028,934
Transfers out (5,608,583) (1,987,438) (7,596,021)
Total other financing sources (uses)(5,470,583) 4,478,413 425,083 (567,087)
Net change in fund balances (3,297,348) (834,551) 2,667,318 (1,464,581)
Fund balances - beginning 9,542,567 1,033,325 12,715,944 23,291,836
Fund balances - ending 6,245,219$ 198,774$ 15,383,262$ 21,827,255$
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
30
Net change in fund balances - total governmental funds (1,464,581)$
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. Capital assets contributed
by private developers do not provide current resources and are not reported as revenues in the funds.24,220,358
The statement of net position shows a decrease in joint ventures not reported in the funds.(56,128)
The issuance of long-term debt (e.g. bonds, notes) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes current
financial resources of governmental funds. Neither transaction, however, has any affect on net
assets. There was no new issuance of governmental debt for the year ended December 31, 2013.1,194,569
Revenues reported in the statement of activies that do not provide current financial resources
are not reported as revenues in the funds.139,358
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 (561,171)
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 funds is reported with governmental
activities. This amount comes from the Combining Statement of Revenues, Expenditures
and Changes in Net Fund Assets for Internal Service Funds, Net Operating Income.720,613
Change in net position of governmental activities (see page 27)24,193,018$
The notes to the financial statements are an integral part of this statement.
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, 2013
(Continued from prior page)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
31
Original Final Variance to
Budget Budget Actual Final Budget
REVENUES
Taxes 24,458,000$ 25,358,000$ 26,345,139$ 987,139$
Licenses and permits 1,093,200 1,693,200 1,466,675 (226,525)
Intergovernmental revenue 1,463,700 1,463,700 1,796,829 333,129
Charges for services 4,536,509 4,536,509 4,737,688 201,179
Fines and forfeitures 807,650 807,650 937,047 129,397
Miscellaneous revenue 626,850 626,850 624,571 (2,279)
Total revenues 32,985,909 34,485,909 35,907,949 1,422,040
EXPENDITURES
Current:
General government 7,069,624 7,238,124 6,705,485 (532,639)
Public safety 17,208,000 18,388,000 18,675,555 287,555
Transportation 1,535,558 1,535,558 1,648,750 113,192
Natural & economic environment 1,629,516 1,629,516 1,545,972 (83,544)
Culture and recreation 4,025,042 4,058,542 4,260,846 202,304
Capital outlay:
General government 395,800 144,800 284,409 139,609
Public safety 15,000 12,483 (2,517)
Debt service:
Principal 468,046 468,046 468,042 (4)
Interest 133,518 133,518 133,172 (346)
Total expenditures 32,465,104 33,611,104 33,734,714 123,610
Excess of revenues over (under) expenditures 520,805 874,805 2,173,235 1,298,430
OTHER FINANCING SOURCES (USES)
Interfund loans repaid 1,157,303 1,157,303 511,596 (645,707)
Transfers in 138,000 138,000 138,000 -
Interfund loan issued (123,763) (1,993,763) (285,000) 1,708,763
Transfers out (4,563,857) (6,302,665) (5,608,583) 694,082
Total other financing uses (3,392,317) (7,001,125) (5,243,987) 1,757,138
Net change in fund balances (2,871,512) (6,126,320) (3,070,752) 3,055,568
Prior period adjustments -
Fund balances - beginning 7,573,573 7,573,573 9,542,567 1,968,994
Fund balances - ending 4,702,061$ 1,447,253$ 6,471,815$ 5,024,562$
Interfund loan activity included for budget purposes but not
included in Statement of Revenues, Expenditures and Changes
in Fund Balance (226,596)
Fund balances - ending (see page 29)6,245,219
The notes to the financial statements are an integral part of this statement.
Statement of Revenues, Expenditures, and Changes in Fund Balances-Budget to Actual
General Fund
For the Year Ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
32
Water/Sewer Internal
Utility Service
ASSETS
Current assets:
Cash and cash equivalents 3,399,384 7,534,665$
Restricted cash equivalents:
Claims incuured but not reported 549,430
Customer deposits 561,096
Unspent bond proceeds 5,614,545
Revenue bond covenants 2,986,517
Investments 2,000,000
Receivables (net of allowances):
Customers 787,050
Interfund loans - current portion 43,890
Grants 402,186
Special assessments - current portion
Inventory 234,694
Total current assets 15,985,472 8,127,985
Noncurrent assets:
Restricted cash equivalents 3,188,801
Special assessments 397,549
Interfund loan 145,504
Capital assets not being depreciated:
Land 2,520,925
Construction work in progress 7,409,247 35,816
Capital assets net of accumulated depreciation:
Buildings and structures 37,434,680
Machinery and equipment 7,340,854 4,006,983
Infrastructure 114,456,107
Total noncurrent assets 172,748,163 4,188,303
Total assets 188,733,635 12,316,288
LIABILITIES
Current liabilities:
Accounts payable 1,111,284 207,132
IBNR payable from restricted assests 549,430
Other liabilities
Customer deposits payable from restricted assets 561,096
Accrued interest payable 722,505
Compensated absences - current portion 360,641 27,854
Loans to other governments - current portion 1,669,767
Revenue bonds - current portion 1,905,000
Total current liabilities 6,330,293 784,416
Noncurrent liabilities:
Compensated absences 134,203
Loans to other governments 8,664,104
Revenue bonds payable 28,450,000
Total noncurrent liabilities 37,248,307 -
Total liabilities 43,578,600 784,416
NET POSITION
Net investment in capital assets 128,472,942 4,042,799
Unrestricted 16,682,093 7,489,073
Total net position 145,155,035 11,531,872$
Adjustment to reflect the consolidation of internal
service fund activity related to proprietary funds 3,623,894
Net position of business-type activities (see page 26)148,778,929$
The notes are an integral part of this statement.
Statement of Net Position
Proprietary Funds
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
33
Water/Sewer Internal
Utility Service
OPERATING REVENUES
Charges for services 17,850,903$ 4,882,240
Miscellaneous 63,798 2,688,659
Total operating revenues 17,914,701 7,570,899
OPERATING EXPENSES
Depreciation 5,488,565 797,079
Salaries and wages 2,599,430 275,609
Personnel benefits 1,167,964 117,264
Supplies 1,204,140 789,806
Services 7,402,110 5,066,517
Total operating expenses 17,862,209 7,046,275
OPERATING INCOME 52,492 524,624
NONOPERATING REVENUES (EXPENSES)
Interest income 87,868 20,266
Rents and leases 62,020
Grant 41,848
Interest expense (1,268,270)
Total nonoperating expense (1,076,534) 20,266
Income (loss) before contributions,
special item and transfers (1,024,042) 544,890
Capital contributions 4,214,092 157,788
Transfers in 450,000 370,000
Transfers out (252,913)
Changes in net position 3,387,137 1,072,678
Net position - beginning 141,767,898 10,459,194
Net position - ending 145,155,035$ 11,531,872$
Changes in net position per above 3,387,137$
Adjustment to reflect the consolidation of internal
service fund activity related to Proprietary funds 352,066$
Change in net position of business-type activities
(see page 27)3,739,198$
The notes to the financial statements are an integral part of this statement.
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
34
Water/Sewer Internal
Utility Service
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers 18,070,374$ 7,570,899$
Payments to employees (3,712,567) (384,939)
Payments to suppliers (8,034,433) (6,229,551)
Net cash provided by operating activities 6,323,374 956,409
CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets (8,312,043) (976,183)
Principal paid on debt (5,281,744) -
Interest paid on debt (1,185,233) -
Bond proceeds received 9,797,427 -
Payments received from notes and loans 210,692 -
Transfers in (out) for capital 197,087 370,000
Capital charges 1,740,170 -
Capital grant and contribution proceeds 1,153,390 -
Net cash used by capital and related financing activities (1,680,254) (606,183)
CASH FLOWS FROM INVESTING ACTIVITIES
Investments sold and earnings 87,868 20,266
Interfund loan repayment - 96,000
Net cash provided from investing activities 87,868 116,266
Net increase in cash & cash equivalents 4,730,988 466,492
Beginning cash & cash equivalents 11,019,363 7,068,173
Ending cash & cash equivalents 15,750,351$ 7,534,665$
NON CASH ACTIVITIES
Capital contributions 958,764 -
Total noncash activities 958,764$ -$
RECONCILATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net Operating Income 52,492$ 524,624$
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
Depreciation 5,488,565 797,079
Rents and leases 62,020
Changes in assets and liabilities
Decrease in customer receivables 93,653 -
Decrease in inventories 82,654 -
Increase in accounts payable and deposits 489,163 (373,228)
Increase in compensated absences 54,827 7,934
Net cash provide by operating activities 6,323,374$ 956,409$
The notes to the financial statements are an integral part of this statement.
Statement of Cash Flows
Proprietary Funds
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
35
Pension and Other
Postemployment
Benefits Agency
ASSETS
Cash & cash equivalents 407,101$ 610,129$
Investments (at fair market value):
LID Note 66,590
Federal Agency 78,789
Mutual Funds 4,115,001
Total assets 4,667,481 610,129
LIABILITIES
Accounts payable 429,120
Due to others 181,009
Total liabilities - 610,129
NET POSITION
Held in trust for pension benefits/other post
employment benefits 4,667,481$
The notes to the financial statements are an integral part of this statement.
Statement of Net Position
Fiduciary Funds
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
36
Pension and Other
Postemployment
Benefits
ADDITIONS
Taxes 47,624$
Investment earnings:
Interest 8,782
Dividends 236,655
Net increase in market value of investments 764,078
Total Additions 1,057,139
DEDUCTIONS
Pension benefits 152,287
Medical premiums 113,471
Administrative expenses 7,104
Total deductions 272,862
Change in net position 784,277
Net position - beginning 3,883,204
Net position - ending 4,667,481$
The notes to the financial statements are an integral part of this statement.
Statement of Changes in Net Position
Fiduciary Funds
For the year ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
37
NOTES TO THE 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
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
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
38
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.
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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
39
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. The construction fund was a major fund in
2013.
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.
Internally dedicated resources are reported as general revenues rather than as program
revenues. General revenues include all taxes.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
40
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.
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
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
41
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 49% of the outstanding receivable at December 31,
2013.
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, 2013 $9,510 of Governmental and $22,760 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.
Governmental-type special assessments are for street improvements; Business Type
special assessments are for sewer infrastructure.
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. Inventories
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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
42
5. Capital assets. Capital assets, which include property, plant, and equipment and
infrastructure assets, are reported in the applicable governmental or business-type
columns in the government-wide financial statements. Capital assets, other than
infrastructure, are defined by the City as assets with an initial, individual cost of more
than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. The government
reports infrastructure assets on a network and subsystem basis. Such assets are recorded at
historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation. Additions, improvements and other
capital outlays that significantly extend the useful life of an asset are capitalized. The cost
of normal maintenance and repairs and street preservation activities that do not add to the
value of the asset or materially extend asset lives are not capitalized. Assets are
depreciated over their useful lives using the straight line 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 2013.
Capitalization thresholds (the dollar value above which an asset acquisitions are added to
the capital asset accounts and estimated useful lives of capital assets are as follows:
Assets Threshold Useful Lives
Land All
Building & Structure $5,000 5 - 50
Other improvements $5,000 5 - 100
Machinery & Equipment & Vehicles $5,000 2 - 50
Infrastructure $5,000 5 - 50
6. Compensated absences
The City accrues accumulated unpaid vacation and sick leave and associated employee
related costs when earned (or estimated to be earned) by the employee. All vacation and
sick pay is accrued when incurred in the government-wide, proprietary, and fiduciary
fund financial statements. In governmental funds, such amounts are not accrued using the
modified accrual basis of accounting but are reported as a liability in the government-
wide financial statements.
Sick leave may be accumulated up to a maximum of 960 hours for all employees except
firefighters. Firefighter sick leave may be accumulated up to a maximum of 840 hours.
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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
43
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 outflows/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 2013 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).
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
44
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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
45
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 $ 170,346
Land 12,453,988
Construction in process 7,258,035
Building 25,021,220
Other improvements 4,634,948
Equipment 1,818,233
Infrastructure 115,320,919
Current year spending in construction work in progress 7,257,934
Current year capital purchases 142,009
Current year capital donations received 28,891,372
Current year decrease in joint venture (56,128)
Current year capital asset disposals (304,385)
Current year depreciation (12,070,957)
Net adjustment to add to government-wide fund balance to arrive at
Net position-governmental activities $ 190,537,534
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 $ (1,927,105)
OPEB obligation (1,695,149)
Bonds and notes payable (5,474,068)
Current year principal payments reducing debt 1,194,569
Current year OPEB and other expense recognized (256,786)
Net adjustment to reduce government-wide fund balance to arrive at
Net position-governmental activities $ (8,158,539)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
46
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. The first element of that reconciliation
relates to capital activity as follows:
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:
Capital outlays for:
Land 28,457
Construction in Process 7,257,934
Machinery & Equipment 113,552
Contributed capital assets 28,891,372
Current year depreciation:
Buildings (1,120,191)
Other Improvements (593,864)
Machinery & Equipment (288,514)
Infrastruture (10,068,388)
Net capital activity 24,220,358
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
47
• Prior to the first Tuesday in November, the City Manager submits a proposed budget to
the Council. This budget is based on priorities established by the Council and estimates
provided by departments during the preceding months, and balanced with revenue
estimates made by the Financial Services Manager.
• The Council conducts public hearings on the proposed budget in November and/or
December.
• The Council makes its adjustments to the proposed budget and adopts by ordinance a
final balanced budget no later than December 31.
• Within 30 days of adoption, the final budget is available to the public.
Amending the budget
The budget, as adopted, constitutes the legal authority for expenditures. The City’s
budget is adopted at the fund level, so that expenditures may not legally exceed
appropriations at that level of detail. The City Manager is authorized to transfer budgeted
amounts between departments within any fund; however, any revisions that alter the total
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, 2013. 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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
48
C. Budgetary compliance
The Golf Course fund exceeded its appropriation of $1,768,000 by $53,165, the Senior
Center fund exceeded by $6,753, the Multi-Modal fund exceeded by $287 and the
Revolving Abatement fund by $13,130.
NOTE 4 – DETAILED NOTES ON ALL FUNDS
A. Deposits, investments and restricted assets
As of December 31, 2013 the government had the following:
Weighted Average
Fair Value Maturities (Years)
Local Government Investment Pool
Total Invested Cash Equivalents $31,054,966 N/A
Investments in Federal Agencies 1,485,390 12.3
Investment in Mutual Funds 4,115,003 N/A
Investment in Certificate of Deposits 3,000,000 0.13
Investment in Notes 66,590 7.38
Total fair value $39,721,949
Portfolio weighted average maturity 2.50
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, 2013 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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
49
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.
Concentration of credit risk as a percentage of total investments:
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 $13,842,988 on deposit with
US Bank on December 31, 2013. The FDIC insures those deposits up to $250,000. US Bank is
required to collateralize 10% of the remaining funds which is $1,359,298. The temporary
custodial credit risk for uncollateralized deposits at US Bank was $12,233,690 at December 31,
2013.
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).
Issuer % of Total Fair Value
Federal Farm Credit Bank 3%1,000,000
Small Business Admin 1%485,390
US Bank 8%3,000,000
Local Gov't Invest Pool 78%31,054,966
City of Pasco LID 0%66,590
American Funds 10%4,115,002
100%39,721,948
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
50
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:
Temporary Permanent
Restrictions Restrictions
City View Cemetery Endowment $434,308
Water/Sewer Debt Reserve account $3,188,801
Water/Sewer Debt Service account 2,986,516
Water/Sewer Bond Proceeds 5,614,545
Water/Sewer Customer Deposits 561,096
Claims incurred but not reported (IBNR) 549,430
Bi-centennial contribution 6,264
Standstill Tax Refund Agreement 162,232
Governmental Funds Customer Deposits 208,041
Drug Forfeit and Evidence 60,133
Water/Sewer Special Assess Receivable 397,549
Governmental Special Assess Receivable 801,175
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
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
51
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, 2013. 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 $353,130
and since these funds are not available revenue recognition is deferred. Subsequent collections of
delinquent amounts will be recorded in revenue in the period actually received.
The City may levy up to $3.60 per $1,000 of assessed valuation for general governmental
services subject to two limitations:
a. Except as otherwise provided for, the levy for taxing districts in any year shall be set
so that the regular property taxes payable in the following year shall not exceed the
limit factor of 101% multiplied by the amount of regular property taxes lawfully
levied for such district in the highest of the three most recent years in which such
taxes were levied for such district plus an additional dollar amount calculated by
multiplying the increase in assessed value in that district resulting from new
construction, improvements to property, and any increase in the assessed value of
state-assessed property by the regular property tax levy rate of that district for the
preceding year.
b. The Washington State Constitution limits the total regular property taxes to one
percent of assessed valuation or $10 per $1,000 of value. If the taxes of all districts
exceed this amount, each is proportionately reduced until the total is at or below the
one percent limit. Effective November 29, 2007 Washington State House Bill (HB)
2416 reinstated the one percent property tax limit factor adopted by voters under
Initiative No. 747 following the invalidation of that initiative by the courts. The
provisions of HB 2416 are retroactive to and prospective from taxes levied for
collection in 2002. The retroactivity extinguishes the additional levying capacity
resulting from the November 2007 court ruling but let’s stand any banked capacity
accumulated prior to the court ruling and the authority to continue to bank future
unused capacity.
In November 2012, the City approved an ordinance establishing the operating levy for 2013 of
$6,492,514 based on an assessed valuation of $3,300,169,365 and an estimated rate of $1.966733
per $1,000 of assessed value. In November 2013, the City approved an ordinance establishing the
operating levy for 2014 of $6,927,439 based on an assessed valuation of $3,541,628,830 and an
estimated rate of $1.956004 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 ($58,746) and the 1999 UTGO bond for the Fire Station ($74,404).
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
52
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, 2013 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 unavailable revenue. Governmental funds report unavailable revenue
in connection with receivables for revenues that are not considered to be available to liquidate
liabilities of the current period. Governmental funds also defer revenue recognition in
connection with resources that have been received but not yet earned. At the end of the current
fiscal year, the various components of deferred revenue reported in the governmental funds were
as follows:
Unavailable Revenue – Property Taxes $ 353,130
Unavailable Revenue – Special Assess/Loans 801,175
Unavailable Revenue – Municipal Court 1,036,487
Unavailable Revenue – Other 65,256
Total $2,256,048
Loans receivable. Loans receivables consist of amounts owed on an open account from private
individuals or organizations for goods and services rendered. Since the City is unable by law to
grant credit to any entity, all loans receivable are related to grant monies received from other
agencies which have authorized the loan as part of the grant process. Repayments of these loans
are used to establish revolving loan funds for loans that match the original grant purpose. The
long term portion of those loans receivable are included in reserved fund balance as the assets are
not available to liquidate liabilities in the current period.
C. Capital Assets
Capital asset activity for the year ended December 31, 2013 was as follows:
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
53
`
Governmental Activities:Beginning
Balance 01/01/13
Current Period
Increases
Current Period
Decreases
Ending Balance
12/31/13
Capital assets, not being depreciated
Land 12,453,988 292,730 36,833 12,709,885
Construction in process 7,693,195 7,944,721 4,309,512 11,328,404
Total capital assets, not being depreciated 20,147,183 8,237,451 4,346,345 24,038,289
Capital assets, being depreciated:
Building & structure 38,200,730 11,670 267,552 37,944,848
Other improvements 9,240,869 9,240,869
Machinery and equipment 9,890,142 2,379,556 670,887 11,598,811
Infrastructure 166,642,530 30,978,690 197,621,220
Total capital assets being depreciated 223,974,271 33,369,916 938,439 256,405,748
Less accumulated depreciation:
Building & structure 13,179,510 1,120,192 14,299,702
Other improvements 4,605,922 593,863 5,199,785
Machinery and equipment 5,957,943 830,201 508,925 6,279,219
Infrastructure 51,321,610 10,068,390 61,390,000
Total accumulated depreciation 75,064,985 12,612,646 508,925 87,168,706
Total capital assets, being depreciated, net 148,909,286 20,757,270 429,514 169,237,042
Governmental activities capital assets net 169,056,469$ 28,994,721$ 4,775,859$ 193,275,331$
Business Type Activities:Beginning
Balance 01/01/13
Current Period
Increases
Current Period
Decreases
Ending Balance
12/31/13
Capital assets, not being depreciated
Land 2,494,425$ 26,500$ 2,520,925$
Construction in process 15,512,175 8,035,515 16,102,627 7,445,063
Total capital assets, not being depreciated 18,006,600 8,062,015 16,102,627 9,965,988
Capital assets, being depreciated:
Building & structure 64,382,892 8,136,699 72,519,591
Machinery and equipment 4,090,948 6,662,062 109,311 10,643,699
Infrastructure 144,296,602 2,802,065 147,098,667
Total capital assets being depreciated 212,770,442 17,600,826 109,311 230,261,957
Less accumulated depreciation:
Building & structure 32,618,137 2,466,774 35,084,911
Machinery and equipment 1,894,119 363,069 109,311 2,147,877
Infrastructure 29,728,444 2,914,116 32,642,560
Total accumulated depreciation 64,240,700 5,743,959 109,311 69,875,348
Total capital assets, being depreciated, net 148,529,742 11,856,867 160,386,609
Business activities capital assets net 166,536,342$ 19,918,882$ 16,102,627$ 170,352,597$
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
54
Depreciation expense by function:
Construction commitments
The City of Pasco has active construction projects as of December 31, 2013. The projects include
street construction and various utility constructions. At year end, the city’s commitments with
contractors are as follows:
D. Interfund loans receivable, payable and transfers
Interfund loans
The composition of interfund loan balances as of December 31, 2013 is as follows:
Governmental activities:
General government 363,701$
Public Safety 413,715
Transportation 10,367,213
Economic environment 195,324
Culture & recreation 1,272,693
Total depreciation expense - governmental activities 12,612,646$
Business-type activities:
Water 1,834,206$
Sewer 2,971,371
Process water reuse facility 233,202
Stormwater 253,102
Irrigation 452,078
Total depreciation expense- business-type activities:5,743,959$
PROJECT SPENT REMAINING
CATEGORY COMMITMENT TO DATE COMMITMENTS
STREET 8,299,027 6,920,907 1,378,120
GENERAL 5,263,084 3,271,163 1,991,921
PARKS 117,534 - 117,534
WATER 2,994,048 2,811,032 183,016
SEWER 3,927,187 3,627,395 299,792
PWRF 3,393,523 2,945,792 447,731
STORMWATER 1,158 525 633
IRRIGATION 2,112,288 1,620,802 491,486
TOTAL 26,107,849$ 21,197,616$ 4,910,233$
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
55
Interfund transfers
Transfers between funds during the year ended December 31, 2013 are as follows:
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
Interfund Loan Loan Original Loan Outstanding Loan Interfund Loan Due in More
Receivable Purpose Amount Amount Payable Than 1 Year
General Fund Temporary cash flow 285,000 285,000 Nonmajor Special Revenue -
General Fund Interim construct finance 242,702 242,702 Nonmajor Debt Service -
General Fund Interim construct finance 265,311 265,311 Nonmajor Debt Service -
General Fund PWRF asset purchase 700,000 472,404 Nonmajor Special Revenue 239,118
Nonmajor Special Revenue Parkng Lot Resurface 689,000 582,482 Nonmajor Special Revenue 472,769
Internal Service Fund Permanent LID Financing 438,905 189,394 Nonmajor Debt Service 145,504
2,620,918 2,037,293 857,391
General Nonmajor
Special
Nonmajor
Debt Utility Total
General 138,000$ 138,000$
Nonmajor Special Revenue 2,191,709 220,812 2,412,521
Major Construction 3,204,874 1,049,552 129,074 94,913 4,478,413
Utility 450,000 450,000
Internal Service 212,000 158,000 370,000
Total 5,608,583$ 1,858,364$ 129,074$ 252,913$ 7,848,934$
TRANSFER FROM
T
R
A
N
S
F
E
R
T
O
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
56
maintenance activities; from earnings and fund balance of the Boulevard Maintenance fund to
the general fund to pay for boulevard maintenance activities and from the general fund to the
ambulance fund.
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:
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, 2013 was as follows:
Year Ending December 31 Amount
2014 4,631
2015 14,284
2016 8,478
2017 9,910
2018 1,258
Total $38,561
Changes in Long-Term Liabilities
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
GOVERNMENTAL ACTIVITIES
General obligation bonds 4,710,000$ -$ (875,000)$ 3,835,000$ 520,000$
Special Assessment Bond 320,000 - (160,000) 160,000 -
External Loans & Notes 444,068 - (159,569) 284,499 144,967
Compensated absences 1,927,105 1,499,078 (1,528,728) 1,897,455 1,509,677
Net OPEB obligation 1,695,149 800,733 (514,297) 1,981,585
Governmental activity long-term liabilities 9,096,322$ 2,299,811$ (3,237,594)$ 8,158,539$ 2,174,644$
BUSINESS ACTIVITIES
Revenue bonds 24,260,000 9,755,000 (3,660,000) 30,355,000 1,905,000
External Loans & Notes 11,955,592 - (1,621,721) 10,333,871 1,669,767
Compensated absences 445,322 442,132 (384,290) 503,164 368,961
Business activity long-term liabilities 36,660,914$ 10,197,132$ (5,666,011)$ 41,192,035$ 3,943,728$
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
57
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.
GENERAL OBLIGATION BONDS
MATURITY 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$ 100,000$
2002 Civic Center 2011-2013 4.00% - 4.00%3,155,000 365,000
2011 LTGO Refund 2001 LTGO 2011-2020 2.00% - 4.00%4,110,000 410,000
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2014 520,000 149,600
2015 530,000 131,600
2016 545,000 113,250
2017 560,000 94,400
2018 575,000 70,400
2018-2022 1,105,000 66,200
2023-2028 - -
TOTAL 3,835,000$ 625,450$ -$ -$
- -
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$ 160,000$
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2014 -$ 7,800$
2015 -$ 7,800$
2016 -$ 7,800$
2017 -$ 7,800$
2018 -$ 7,800$
2018-2022 160,000 11,800
2023-2027 - -
TOTAL 160,000$ 50,800$ -$ -$
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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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.
REVENUE BONDS
MATURITY INTEREST ORIGINAL INSTALLMENT
PURPOSE RANGE RATE RANGE AMOUNT 2013 AMOUNT
2002 Water/Sewer 2011- 2022 3.50%-4.70%5,945,000 1,910,000
2005 Water/Sewer 2011- 2025 4.00%-4.25%4,400,000 190,000
2007 Water/Sewer ULID 2011- 2022 4.25%-4.75%845,000 50,000
2009 Water/Sewer 2011- 2029 3.00%-4.75%10,045,000 410,000
2010 A Ref 1998B Plus New 2011- 2029 3.00%-4.370%9,070,000 955,000
2010 T Ref 1998A 2018 4.62%1,240,000 145,000
2013 A Sewer 2014-2028 3.00%-4.00%2,520,000 -
2010 T Process Water Reuse Facility 2015-2028 0.69%-4.89%7,235,000 -
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2014 1,905,000$ 1,033,503$
2015 1,640,000 1,072,589
2016 1,640,000 1,023,661
2017 1,730,000 970,746
2018 1,780,000 910,663
2018-2022 10,725,000 3,576,870
2023-2027 9,805,000 1,502,629
2028-2032 1,130,000 27,425
2033-2039 - -
TOTAL -$ -$ 30,355,000$ 10,118,086$
EXTERNAL LOANS
INTEREST ORIGINAL INSTALLMENT
PURPOSE MATURITY RATE AMOUNT 2013 AMOUNT
2002 Animal Control Facililty Land 12/1/2016 6.24%275,500$ 18,701$
2009 Police Vehicle Computers 6/1/2013 3.47%194,051 26,475$
2006 Port Airport Fire Building 7/12/2016 4.00%120,000 12,870
1998 TRAC Loan 12/1/2014 4.505-5.50%1,197,931 93,103
LID 146 Special Assessment Note 2013-2021 4.10%89,351 8,424
Waste Water Polution Control Facilities PWTF 95-025 6/30/2015 1.00%812,700 43,011
West Pasco Water System PWTF 95-026 6/30/2015 1.00%2,687,300 107,375
Riverview Trunk/SE Sewer 6/30/2020 1.00%1,890,000 111,140
Sewer Treatment Plant Phase 1&2 SRF Loan 10/13/2015 1.00%23,700,000 1,360,217
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2014 144,967$ 13,610$ 1,669,767$ 322,502$
2015 51,893$ 6,252$ 1,719,487 270,166.00
2016 47,110$ 3,535$ 1,620,576 216,076
2017 9,411$ 1,662$ 1,673,869 161,673
2018 9,795$ 1,277$ 1,729,043 105,387
2018-2022 21,323$ 1,351$ 1,921,129 49,432
2021-2025 - -
2026-2030 -
TOTAL 284,499$ 27,687$ 10,333,871$ 1,125,236$
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
59
For unemployment claims, the City is on a 100% reimbursable program with the State where
the City pays all unemployment claims charged against it.
The City of Pasco is a member of the Washington Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance 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 162 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. Total limits are $20 million per occurrence subject to aggregate sublimits 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 $750,000, for all perils other than flood and earthquake, and insured
above that amount by the purchase of reinsurance. (City does not participate in these
programs; all is purchased through commercial broker as identified on this page).
In-house services include risk management consultation, loss control field services, claims
and litigation administration, and loss analyses. WCIA contracts for the claims investigation
consultants for personnel issues and land use problems, insurance brokerage and lobbyist
services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated
basis, as determined by an outside, independent actuary. The assessment covers loss, loss
adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the
right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by
investment of WCIA’s assets in financial instruments which comply with all State guidelines.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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A Board of Directors governs WCIA, which is comprised of one designated representative
from each member. The Board elects an Executive Committee and appoints a Treasurer to
provide general policy direction for the organization. The WCIA Executive Director reports
to the Executive Committee and is responsible for conducting the day-to-day operations of
WCIA.
Property, Inland Marina, boiler, machinery and employee fidelity insurance is purchased
through commercial insurance brokers.
The City is self-insured for medical and dental coverage for its employees. A third party
administrator, Benefits Management, Inc. processes all claims for reimbursement. The third
party administrator provides utilization management services and requires pre-authorization
for all non-emergency hospital confinements. It is the City's policy to maintain at least three
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:
2011 2012 2013
$3,748,763 $3,905,030 $4,197,557
B. Related organization
Pasco Public Facility District
Pursuant to RCW 35.57 (the “City PFD Act”) the Pasco Public Facilities District was formed
and created by Ordinance No. 3558 on July 15, 2002, coextensive with the boundaries of the
City, with the powers and authority set forth in the City PFD Act. The District is established
for the purpose of acquiring, constructing, owning, remodeling, maintaining, equipping, re-
equipping, repairing, financing, operating one or more Regional Centers, as defined by the
RCW 35.57.020 and/or participating with any other qualified public facilities district in a
cooperative and joint development of a Regional Center in the Tri-Cities area by interlocal
agreement.
The members of the board of directors of the District (the “PFD Board”) shall be selected and
appointed by the Council, as required by the RCW. The PFD Board consisted of five
members. Three of the members will be appointed based on recommendations from local
organizations. The members will serve four-year terms. Of the initial members, one will be
appointed for a one year term, one for a two year term, one for a three year term, and the
remainder for four year terms. The Council may, by resolution, remove a member for any
reason. Vacancies will be filled by appointment by the Council.
All corporate powers of the District will be exercised by or under the authority of the PFD
Board; and the business, property and affairs of the District shall be managed under the
direction of the PFD Board, except as may be otherwise provided for by law herein, or in the
Charter.
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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 2013, the City of Pasco paid Franklin County $117,969 in operating
expenses and $102,435 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/county/district) 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 27,
Accounting for Pensions by State and Local Government Employers and 50, Pension
Disclosures, an Amendment of GASB Statements 25 and 27
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; employees of
legislative committees; employees of district and municipal courts; and employees of local
governments. Membership also includes higher education employees not participating in higher
education retirement programs. Approximately 49 percent of PERS salaries are accounted for by
state employment. 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.
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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 Plan 3. The option must be exercised within 90 days of employment.
Employees who fail to choose within 90 days default to Plan 3.
PERS is comprised of and reported as three separate plans for accounting purposes: Plan 1, Plan
2/3, and Plan 3. Plan 1 accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts
for the defined benefits of Plan 2 members, and the defined benefit portion of benefits for Plan 3
members. Plan 3 accounts for the defined contribution portion of benefits for Plan 3 members.
Although members can only be a member of either Plan 2 or Plan 3, the defined benefit portions
of Plan 2 and Plan 3 are accounted for in the same pension trust fund. All assets of this Plan 2/3
may legally be used to pay the defined benefits of any of the Plan 2 or Plan 3 members or
beneficiaries, as defined by the terms of the plan. Therefore, Plan 2/3 is considered to be a single
plan for accounting purposes.
PERS Plan 1 and Plan 2 retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. Employee contributions to the PERS Plan 1
and Plan 2 defined benefit plans accrue interest at a rate specified by the Director of DRS.
During DRS’ Fiscal Year 2013, the rate was five and one-half percent compounded quarterly.
Members in PERS Plan 1 and Plan 2 can elect to withdraw total employee contributions and
interest thereon, in lieu of any retirement benefit, upon separation from PERS-covered
employment.
PERS Plan 1 members are vested after the completion of five years of eligible service.
PERS Plan 1 members are eligible for retirement from active status at any age with at least 30
years of service, at age 55 with 25 years of service, or at age 60 with at least 5 years of service.
Plan 1 members retiring from inactive status prior to the age of 65 may receive actuarially
reduced benefits.
The monthly benefit is 2 percent of the average final compensation (AFC) per year of service,
but the benefit may not exceed 60 percent of the AFC. The AFC is the monthly average of the 24
consecutive highest-paid service credit months.
PERS Plan 1 retirement benefits are actuarially reduced to reflect the choice, if made, of a
survivor option.
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 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. The benefit amount is
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
63
$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, at which time the benefit is converted to the member’s
service retirement amount.
A member with five years of covered employment is eligible for non-duty disability retirement.
Prior to the age of 55, the benefit amount is 2 percent of the AFC for each year of service
reduced by 2 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. Plan 1 members may elect to receive an optional COLA amount (based on the Consumer
Price Index), capped at 3 percent annually. To offset the cost of this annual adjustment, the
benefit is reduced.
PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2
members are eligible for normal retirement at the age of 65 with five years of service. The
monthly benefit is 2 percent of the AFC per year of service. The AFC is the monthly average of
the 60 consecutive highest-paid service months. 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 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, if hired prior to May 1, 2013:
• With a benefit that is reduced by 3 percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes
stricter return-to-work rules.
PERS Plan 2 members hired on or after May 1, 2013 have the option to retire early by accepting
a reduction of 5 percent for each year of retirement before age 65. This option is available only
to those who are age 55 or older and have at least 30 years of service.
PERS Plan 2 retirement benefits are actuarially reduced to reflect the choice, if made, of a
survivor option.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit
component and member contributions finance a defined contribution component. As established
by Chapter 41.34 RCW, employee contribution rates to the defined contribution component
range from 5 percent to 15 percent of salaries, based on member choice. Members who do not
choose a contribution rate default to a 5 percent rate. There are currently no requirements for
employer contributions to the defined contribution component of PERS Plan 3.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
64
PERS Plan 3 defined contribution retirement benefits are dependent upon the results of
investment activities. Members may elect to self-direct the investment of their contributions.
Any expenses incurred in conjunction with self-directed investments are paid by members.
Absent a member’s self-direction, PERS Plan 3 contributions are invested in the Retirement
Strategy Fund that assumes the member will retire at age 65.
For DRS’ Fiscal Year 2013, PERS Plan 3 employee contributions were $99.0 million, and plan
refunds paid out were $69.4 million.
The defined benefit portion of PERS Plan 3 provides members a monthly benefit that is 1 percent
of the AFC per year of service. The AFC is the monthly average of the 60 consecutive highest-
paid service months. There is no cap on years of service credit, and Plan 3 provides the same
cost-of-living allowance as Plan 2.
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 by 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, and were hired before
May 1, 2013, 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.
• If they have 30 service credit years, are at least 55 years old, and were hired after May 1,
2013, they have the option to retire early by accepting a reduction of 5 percent for each
year before age 65.
PERS Plan 3 benefits are actuarially reduced to reflect the choice, if made, of a survivor option.
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 2 percent of the AFC per
year of service. For Plan 3, the monthly benefit amount is 1 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 members meeting specific eligibility requirements have options available to enhance their
retirement benefits. Some of these options are available to their survivors.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
65
A one-time duty-related death benefit is provided to the beneficiary or the estate of a PERS
member who dies 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 the
member’s covered employment, if found eligible by the Department of Labor and Industries.
From January 1, 2007 through December 31, 2007, judicial members of PERS were given the
choice to elect participation in the Judicial Benefit Multiplier (JBM) Program enacted in 2006.
Justices and judges in PERS Plan 1 and Plan 2 were able to make an 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.
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.
There are 1,176 participating employers in PERS. Membership in PERS consisted of the
following as of the latest actuarial valuation date for the plans of June 30, 2012:
Retirees and Beneficiaries Receiving Benefits 82,242
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 30,515
Active Plan Members Vested 106,317
Active Plan Members Nonvested 44,273
Total 263,347
Funding Policy
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 6 percent
for state agencies and local government unit employees, and at 7.5 percent for state government
elected officials. The employer and employee contribution rates for Plan 2 and the employer
contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2
and the defined benefit portion of Plan 3. 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.
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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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The required contribution rates expressed as a percentage of current-year covered payroll, as of
December 31, 2013, are as follows:
Members Not Participating in JBM:
PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 9.21%** 9.21%** 9.21%***
Employee 6.00%**** 4.92%**** *****
* The employer rates include the employer administrative expense fee currently set at 0.18%.
** The employer rate for state elected officials is 13.73% for Plan 1 and 9.21% 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 4.92% for Plan 2.
***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3
member
Both the 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
2013 $35,884 $654,389 $117,580
2012 $35,356 $586,286 $101,264
2011 $33,181 $478,488 $ 89,001
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plans 1 and 2
Plan Description
LEOFF was established in 1970 by the Legislature. Membership 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
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.
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67
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.
LEOFF 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
legislative appropriations. Employee contributions to the LEOFF Plan 1 and Plan 2 defined
benefit plans accrue interest at a rate specified by the Director of DRS. During DRS’ Fiscal Year
2013, the rate was five and one-half percent compounded quarterly. Members in LEOFF Plan 1
and Plan 2 can elect to withdraw total employee contributions and interest earnings, in lieu of
any retirement benefit, upon separation from LEOFF-covered employment.
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 there is an eligible spouse, 50 percent of
the FAS, plus 5 percent of the FAS for each eligible surviving child, with a limitation on the
combined benefit of 60 percent of the FAS; or (2) If there is no eligible spouse, eligible children
receive 30 percent of the FAS for the first child plus 10 percent for each additional child, subject
to a 60 percent limitation of the FAS, divided equally.
A one-time duty-related death benefit is provided to the beneficiary or the estate of a LEOFF
Plan 1 member who dies as a result of injuries or illness sustained in the course of employment,
or if the death resulted from an occupational disease or infection that arose naturally and
proximately out of the member’s covered employment, if found eligible by the Department of
Labor and Industries.
The LEOFF Plan 1 disability benefit 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 benefit or service retirement
benefit.
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LEOFF Plan 2 members are vested after the completion of five years of eligible service.
Plan 2 members are eligible for retirement at the age of 53 with five years of service, or at age 50
with 20 years of service. Plan 2 members receive a benefit of 2 percent of the FAS per year of
service (the FAS is based on the highest consecutive 60 months), actuarially reduced to reflect
the choice of a survivor option. Members who retire prior to the age of 53 receive reduced
benefits. 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. Otherwise, the benefits are actuarially reduced for each year prior
to age 53. A cost-of-living allowance is granted (based on the Consumer Price Index), capped at
3 percent annually.
LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit
required for eligibility. The Plan 2 benefit amount is 2 percent of the FAS for each year of
service. Benefits are reduced to reflect the choice of survivor option and for each year that the
member’s age is less than 53, unless the disability is duty-related. 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 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 catastrophically 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 benefit of at least 10
percent of FAS and 2 percent per year of service beyond five years. The first 10 percent of the
FAS is not subject to federal income tax.
LEOFF Plan 2 retirees may return to work in an eligible position covered by another retirement
system, choose membership in that system and suspend their pension benefits, or not choose
membership and continue receiving pension benefits without interruption.
A one-time duty-related death benefit is provided to the beneficiary or the estate of a LEOFF
Plan 2 member who dies as a result of injuries or illness sustained in the course of employment,
or if the death resulted from an occupational disease or infection that arose naturally and
proximately out of the member’s covered employment, if found eligible by 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 eligible health care insurance premiums.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
69
Legislation passed in 2009 provides to the Washington state registered domestic partners of
LEOFF Plan 2 members the same treatment as married spouses, to the extent that the treatment is
not in conflict with federal laws.
LEOFF members meeting specific eligibility requirements have options available to enhance
their retirement benefits. Some of these options are available to their survivors.
There are 374 participating employers in LEOFF. Membership in LEOFF consisted of the
following as of the latest actuarial valuation date for the plans of June 30, 2012:
Retirees and Beneficiaries Receiving Benefits 10,189
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 689
Active Plan Members Vested 14,273
Active Plan Members Nonvested 2,633
Total 27,784
Funding Policy
Employer and employee contribution rates are developed by the Office of the State Actuary to
fully fund the plans. Starting on July 1, 2000, Plan 1 employers and employees contribute zero
percent, as long as the plan remains fully funded. 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, appropriates money from the state
General Fund to supplement the current service liability and fund the prior service costs of Plan 2
in accordance with the recommendations of the Pension Funding Council and the LEOFF Plan 2
Retirement Board. This special funding situation is not mandated by the state constitution and
could be changed by statute. For DRS’ Fiscal Year 2013, the state contributed $54.2 million to
LEOFF Plan 2.
The methods used to determine the contribution requirements are established under state statute
in accordance with Chapters 41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current-year covered payroll, as of
December 31, 2013, are as follows:
LEOFF Plan 1 LEOFF Plan 2
Employer* 0.18% 5.23%
Employee 0.00% 8.41%
State N/A 3.36%
*The employer rates include the employer administrative expense fee currently set at 0.18%.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
70
Both the city and the employees made the required contributions. The city’s required contributions for
the years ended December 31 were as follows:
LEOFF Plan 1 LEOFF Plan 2
2013 $411 $572,860
2012 $524 $504,331
2011 $712 $472,818
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 3rd 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
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
71
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%
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, 2013 was $2,150,760
and retirement pension payments totaled $152,287. 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.
Annual required contribution (ARC)2008 2009 2010 2011 2012 2013
Annual Normal Cost (BOY)$0 $0 $0 $0 $0 $0
Amortization of UAAL (BOY)0 0 0 0 0 0
Interest to EOY 0 0 0 0 0 0
ARC at EOY $0 $0 $0 $0 $0 $0
Interest on Net Pension Obligation (NPO)0 0 0 0 0 0
Adjustment to ARC 0 0 0 0 0 0
Annual pension cost (APC)$0 $0 $0 $0 $0 $0
Employer contributions 0 0 0 0 0 0
Change in NPO $0 $0 $0 $0 $0 $0
NPO at Beginning of Year 0 0 0 0 0 0
Net Pension Obligation at End of Year $0 $0 $0 $0 $0 $0
Fiscal Year Ended December 31
Annual OPEB Cost and Net OPEB Obligation
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
72
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:
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.
The City has entered into a contractual “Stand Still” agreement on a disputed tax refund
claim. At issue in current litigation is the determination of the applicable statute of
limitations. Per the Stand Still agreement, the city has set aside $162,232 cash in an escrow
account pending settlement of the lawsuit.
Fire
Pension
Trust
ASSETS
Cash & cash equivalents 198,415$
Investments at fair market value:
LID note 66,590
Federal agency 78,789
Mutual funds 1,806,966
Total assets 2,150,760
LIABILITIES
Due to Others
Total liabilities -
NET POSITION
Held in trust for pension benefits
and other purposes 2,150,760$
Old Fire Pension Plan
December 31, 2013
Statement of Net Position
Fire
Pension
Trust
ADDITIONS
Taxes 47,624$
Investment earnings:
Interest 8,419
Dividends 143,627
Net change in fair value of investments 298,831
Total additions 498,501
DEDUCTIONS
Pension benefits 152,287
Administrative expenses 3,914
Total deductions 156,201
Change in net assets 342,300
Net position - beginning 1,808,460
Net position - ending 2,150,760$
For the Year Ended December 31, 2013
Statement of Changes in Net Position
Old Fire Pension Plan
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
73
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 sheriff's departments in the deterrence
and solution of criminal incidents. BI-PIN is served by an Executive Committee composed
of the City Manager of each of the cities and a member from each of the Boards of County
Commissioners of Benton and Franklin Counties. A liaison from the Bi-County Chiefs and
Sheriffs is an ex officio, non-voting member.
The allocation of financial participation among the participating jurisdictions is based upon
the approved budget for that year and is billed quarterly in advance to each agency. On
dissolution of the Interlocal Agreement, the 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 2013 for these transactions was
$27,990
The City of Pasco's equity interest in BI-PIN was $84,390 on December 31, 2013, 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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
74
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 $29,828 on December 31, 2013, which is
reported as an investment in joint ventures in the government-wide Statement of Net position.
The 2013 reduction in equity was $28,130. 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.
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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
75
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.
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 35 LEOFF 1 members in this plan. Thirty-two of those members
are retired and three 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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
76
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:
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.
2011 2012 2013
Annual required contribution (ARC)$937,477 $969,799 $934,928
Interest on Net OPEB Obligation (NOO)23,304 51,716 73,793
Adjustments to ARC (9,155)(72,637)(207,988)
Annual OPEB cost (expense)$951,626 $948,878 $800,733
Contributions made 364,043 423,901 514,297
Increase NOO 587,583 524,977 286,436
NOO at Beginning of Year 582,589 1,170,172 1,695,149
NOO at End of Year $1,170,172 $1,695,149 $1,981,585
% of
Fiscal Annual Annual Net
Year OPEB OPEB OPEB
Ended Cost Contributed Obligation
12/31/13 $800,733 64%$1,981,585
12/31/12 $948,878 45%$1,695,149
12/31/11 $951,626 38%$1,170,172
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
77
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 2013 in-house evaluation, the Actuarial Accrued Liability for the Fire Pension
OPEB Fund is $1,806,418. As of December 31, 2013, the fund had assets of $2,516,721.
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
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.
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:
2011 2012 2013
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
% of
Fiscal Annual Annual Net
Year OPEB OPEB OPEB
Ended Cost Contributed Obligation
12/31/13 $0 N/A $0
12/31/12 $0 N/A $0
12/31/11 $0 N/A $0
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
78
Following are the financial statements for the Other Post Employment Benefit Trust Fund:
Other
Postemployment
Benefit
Trust
ASSETS
Cash & cash equivalents 208,686$
Investments at fair market value:
Mutual funds 2,308,035
Total assets 2,516,721
LIABILITIES
Due to Others
Total liabilities -
NET POSITION
Held in trust for pension benefits
and other purposes 2,516,721$
Statement of Net Position
Other Post Employment Benefit Plan
December 31, 2013
Other
Postemployment
Benefit
Trust
ADDITIONS
Investment earnings:
Interest 363$
Dividends 93,028
Net change in fair value of investments 465,247
Total additions 558,638
DEDUCTIONS
Medical premiums 113,471
Administrative expenses 3,190
Total deductions 116,661
Change in net assets 441,977
Net position - beginning 2,074,744
Net position - ending 2,516,721$
Statement of Changes in Net Position
Other Post Empmloyment Benefit Trust Plan
For the Year Ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
79
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
12/31/2013 47,624 - 47,624 - N/A%
12/31/2012 42,979 - 42,979 - N/A%
12/31/2011 45,132 - 45,132 - N/A%
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, 2013 2,151$ 1,599$ (552)$ 135%N/A N/A %
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 %
Required Supplementary Information
Firemen's Pension Fund
Schedule of Funding Progress for the Firemen's Pension Fund (rounded to thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
80
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
12/31/2013 - 514,297 514,297 934,928 55%
12/31/2012 - 423,901 423,901 969,799 44%
12/31/2011 - 364,043 364,043 937,477 39%
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, 2013 -$ 9,737$ 9,737$ 0%N/A N/A %
December 31, 2012 -$ 10,002$ 10,002$ 0%N/A N/A %
December 31, 2011 -$ 9,638$ 9,638$ 0%N/A N/A %
Required Supplementary Information
Other LEOFF 1 OPEB
Schedule of Funding Progress for the Firemen's OPEB Fund (rounded to thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
81
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
12/31/2013 - - - - N/A%
12/31/2012 - - - - N/A%
12/31/2011 - - - - N/A%
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, 2013 2,517$ 1,806$ (711)$ 139%N/A N/A %
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 %
Required Supplementary Information
Firemen's OPEB Fund
Schedule of Funding Progress for the Firemen's OPEB Fund (rounded to thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
82
“Action is the real measure of intelligence.”
Napolean Hill
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
83
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to accoutn for specific revenues that are legally restricted to expenditures for
particular purposes.
Debt Service Funds
Debt service fundsare used to account for the accumulation of resources for and the payment of general long-term
debt principal and interest.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting government’s programs.
Major Governmental Fund
Capital Project Fund
Capital project funds are used to account for the acquistion and construction of major capital facilities other than
those financed by proprietary funds and trust funds.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
84
Total Total Cemetery
Nonmajor Nonmajor Perpetual Care Total
Other Special Debt Nonmajor Other
Revenue Service Permanent Governmental
ASSETS
Cash & cash equivalents 14,057,014$ 1,324,990$ 15,382,004$
Restricted cash - deposits 12,561 15,000 27,561
Restricted cash - cemetery endowment 434,308$ 434,308
Investments 500,000 500,000
Receivables (net of allowances):
Taxes 225,262 24,968 250,230
Customers 358,026 946 358,972
Interfund loans 582,482 582,482
Grants 366,036 366,036
Special assessments & loans 144,955 656,220 801,175
Total assets 16,246,336 2,021,178 435,254 18,702,768
LIABILITIES
Accounts payable 363,254 363,254
Interfund loans payable 1,339,886 697,407 2,037,293
Deposits payable from restricted assets 12,561 15,000 27,561
Total liabilities 1,715,701 712,407 - 2,428,108
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 210,210 681,188 891,398
FUND BALANCES
Nonspendable
Cemetery permanent fund 434,308 434,308
Restricted
Street and boulevard 7,204,780 7,204,780
Litter & housing abatement 328,933 328,933
Park development 1,821,813 1,821,813
Culture & recreation 132,469 132,469
Capital improvements 2,976,167 2,976,167
Economic development 2,797 2,797
Geneneral obligation debt 333,498 333,498
Special assessment debt 47,412 47,412
Committed
Special revenue funds 2,364,608 2,364,608
Debt guarantee 924,106 924,106
Unassigned (511,142) (677,433) 946 (1,187,629)
Total fund balances 14,320,425 627,583 435,254 15,383,262
Total liabilities, deferrend inflows of
resources and fund balances 16,246,336$ 2,021,178$ 435,254$ 18,702,768$
Combining Balance Sheet
Nonmajor Other Governmental Funds
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
85
Total Total Cemetery
Nonmajor Nonmajor Perpetual Care Total
Other Special Debt Nonmajor Other
Revenue Service Permanent Governmental
REVENUES
Taxes 2,741,489$ 514,967$ 3,256,456$
Licenses and permits 309,906 309,906
Intergovernmental revenue 2,248,097 2,248,097
Charges for services 6,732,608 16,491 6,749,099
Fines and forfeitures 48,356 48,356
Miscellaneous revenue 1,724,264 159,288 582 1,884,134
Total revenues 13,804,720 674,255 17,073 14,496,048
EXPENDITURES
Current:
Public safety 3,689,061 3,689,061
Transportation 2,233,483 14,278 2,247,761
Natural and economic environment 2,741,319 2,741,319
Culture and recreation 2,717,220 2,717,220
Debt service:
Principal 93,103 633,424 726,527
Interest 47,502 84,423 131,925
Total expenditures 11,521,688 732,125 - 12,253,813
Excess of revenues
over (under) expenditures 2,283,032 (57,870) 17,073 2,242,235
OTHER FINANCING SOURCES (USES)
Transfers in 2,412,521 2,412,521
Transfers out (1,858,364) (129,074) (1,987,438)
Total other financing sources (uses)554,157 (129,074) - 425,083
Net change in fund balances 2,837,189 (186,944) 17,073 2,667,318
Fund balances - beginning 11,483,236 814,527 418,181 12,715,944
Fund balances - ending 14,320,425$ 627,583$ 435,254$ 15,383,262$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Other Governmental Funds
For the Year Ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
86
Community
City Arterial I-182 Traffic Street Development
Street Street Impact Overlay Block Grant
ASSETS
Cash & cash equivalents 662,148$ 1,359,881$ 1,063,658$ 2,930,392$ 950$
Restricted cash - deposits
Investments
Receivables (net of allowances):
Taxes 86,094 35,852 57,641
Customers 76,305
Interfund loans
Grants 23,475 23,682 315,675
Special assessments & loans 144,955
Total assets 848,022 1,419,415 1,063,658 2,988,033 461,580
LIABILITIES
Accounts payable 50,927 6,594 61,131 64,142
Interfund loans payable 285,000
Deposits payable from restricted assets
Total liabilities 50,927 6,594 - 61,131 349,142
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 144,955
FUND BALANCES
Nonspendable
Cemetery permanent fund
Restricted
Street and boulevard 1,403,729 1,063,658 2,926,902
Litter & housing abatement
Park development
Culture & recreation
Capital improvements
Economic development
Committed
Special revenue funds 797,095 9,092
Unassigned (32,517)
Total fund balances 797,095 1,412,821 1,063,658 2,926,902 (32,517)
Total liabilities, deferrend inflows of
resources and fund balances 848,022$ 1,419,415$ 1,063,658$ 2,988,033$ 461,580$
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
87
M.L. King
Community Ambulance City View Athletic Golf Senior Multi-Modal
Center Services Cemetery Blvd. Perpetual Program Course Center Facility
54,493$ 246,818$ 89,647$ 728,009$ 150,470$ 107,416$ 11,763$ 97,702$
193 1,150 5,298 670 5,250
500,000
198,448 8,943 2,000 2,991 3,898
582,482
3,204
54,686 445,266 98,590 1,810,491 151,620 114,714 18,628 106,850
3,228 15,639 86 18,001 26,645 7,178 3,537
193 1,150 5,298 670 5,250
3,421 15,639 86 - 19,151 31,943 7,848 8,787
25,696 39,559
1,810,491
132,469
51,265 429,627 72,808 43,212 10,780 98,063
51,265 429,627 72,808 1,810,491 132,469 43,212 10,780 98,063
54,686$ 445,266$ 98,590$ 1,810,491$ 151,620$ 114,714$ 18,628$ 106,850$
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
88
Rivershore Trail Special
School & Marina Lodging Litter Revolving
Impact Fees Maintenance Assessment Abatement Abatement
ASSETS
Cash & cash equivalents 34,481$ 19,859$ 7,260$ 4,359$ 261,714$
Restricted cash - deposits
Investments
Receivables (net of allowances):
Taxes 12,769
Customers 1,562 63,879
Interfund loans
Grants
Special assessments & loans
Total assets 34,481 19,859 20,029 5,921 325,593
LIABILITIES
Accounts payable 32,781 475 17,232 1,269 1,312
Interfund loans payable
Deposits payable from restricted assets
Total liabilities 32,781 475 17,232 1,269 1,312
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
FUND BALANCES
Nonspendable
Restricted
Street and boulevard
Litter & housing abatement 4,652 324,281
Park development
Culture & recreation
Capital improvements
Economic development 2,797
Committed
Special revenue funds 19,384
Unassigned 1,700
Total fund balances 1,700 19,384 2,797 4,652 324,281
Total liabilities, deferrend inflows of
resources and fund balances 34,481$ 19,859$ 20,029$ 5,921$ 325,593$
Combining Balance Sheet
Nonmajor Special Revenue Funds (continued)
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
89
Total
T.R.A.C.Stadium/Nonmajor
Development Park Capital Economic Convention Special
& Operating Development Improvements Development Center Revenue
185,941$ 1,821,813$ 2,976,167$ 1,146,847$ 95,226$ 14,057,014$
12,561
500,000
llowances)
16,453 16,453 225,262
358,026
582,482
366,036
nts & Loans 144,955
202,394 1,821,813 2,976,167 1,146,847 111,679 16,246,336
43,555 9,522 363,254
ayable 472,404 582,482 1,339,886
12,561
- - - 515,959 592,004 1,715,701
210,210
7,204,780
328,933
1,821,813 1,821,813
132,469
2,976,167 2,976,167
2,797
202,394 630,888 2,364,608
(480,325) (511,142)
202,394 1,821,813 2,976,167 630,888 (480,325) 14,320,425
S AND
202,394$ 1,821,813$ 2,976,167$ 1,146,847$ 111,679$ 16,246,336$
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
90
Community
City Arterial I-182 Traffic Street Development
Street Street Impact Overlay Block Grant
REVENUES
Taxes 208,098$ 838,675$
Licenses and permits 309,906
Intergovernmental revenue 931,919 465,338 617,504
Charges for services 6,065 183,481 98,646
Fines and forfeitures
Miscellaneous revenue 6,806 1,454 1,492 3,833 101,965
Total revenues 1,456,729 472,857 184,973 842,508 818,115
EXPENDITURES
Current:
Public safety
Transportation 1,914,868 40,160 216,286
Natural and economic environment 403,109
Culture and recreation
Debt service:
Principal
Interest
Total expenditures 1,914,868 40,160 - 216,286 403,109
Excess of revenues
over (under) expenditures (458,139) 432,697 184,973 626,222 415,006
OTHER FINANCING SOURCES (USES)
Transfers in 779,892 7,629
Transfers out (158,314) (171,693) (242,748) (374,736)
Total other financing sources (uses)779,892 (158,314) (171,693) (242,748) (367,107)
Net change in fund balances 321,753 274,383 13,280 383,474 47,899
Fund balances - beginning 475,342 1,138,438 1,050,378 2,543,428 (80,416)
Fund balances - ending 797,095$ 1,412,821$ 1,063,658$ 2,926,902$ (32,517)$
Nonmajor Special Revenue Funds
For the Year Ended December 31, 2013
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
91
M.L. King
Community Ambulance City View Athletic Golf Senior Multi-Modal
Center Services Cemetery Blvd. Perpetual Program Course Center Facility
1,208 22,163
7,449 2,833,497 246,116 59,396 126,973 1,405,287
31,522 5,231 458 50,840 4,168 306,263 73,719 74,185
38,971 2,839,936 246,574 110,236 131,141 1,711,550 95,882 74,185
3,689,061
47,681
272,587
142,517 141,699 1,711,125 318,721
142,517 3,689,061 272,587 - 141,699 1,711,125 318,721 47,681
(103,546) (849,125) (26,013) 110,236 (10,558) 425 (222,839) 26,504
120,000 1,157,000 30,000 190,000
(1,268) (70,000)
120,000 1,155,732 30,000 (70,000) - - 190,000 -
16,454 306,607 3,987 40,236 (10,558) 425 (32,839) 26,504
34,811 123,020 68,821 1,770,255 143,027 42,787 43,619 71,559
51,265$ 429,627$ 72,808$ 1,810,491$ 132,469$ 43,212$ 10,780$ 98,063$
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
92
Rivershore Trail Special T.R.A.C.
School & Marina Lodging Litter Revolving Development
Impact Fees Maintenance Assessment Abatement Abatement & Operating
REVENUES
Taxes 188,395$ 243,204$
Licenses and permits
Intergovernmental revenue
Charges for services 1,566,200 5,000 36,917
Fines and forfeitures 48,356
Miscellaneous revenue 249 14,657 8 7,507 24,609 191
Total revenues 1,566,449 14,657 188,403 12,507 109,882 243,395
EXPENDITURES
Current:
Public safety
Transportation 14,488
Natural and economic environment 1,566,997 67,339
Culture and recreation 30,565 193,891 117,969
Debt service:
Principal 93,103
Interest 9,332
Total expenditures 1,566,997 30,565 193,891 14,488 67,339 220,404
Excess of revenues
over (under) expenditures (548) (15,908) (5,488) (1,981) 42,543 22,991
OTHER FINANCING SOURCES (USES)
Transfers in 25,000 103,000
Transfers out
Total other financing sources (uses)- 25,000 - - - 103,000
Net change in fund balances (548) 9,092 (5,488) (1,981) 42,543 125,991
Fund balances - beginning 2,248 10,292 8,285 6,633 281,738 76,403
Fund balances - ending 1,700$ 19,384$ 2,797$ 4,652$ 324,281$ 202,394$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special Revenue Funds (continued)
For the Year Ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
93
Total
Nonmajor
Park Capital Economic Stadium/Special
Development Improvement Development Conv. Center Revenue
1,019,913$ 243,204$ 2,741,489$
309,906
209,965 2,248,097
157,581 6,732,608
48,356
2,495 3,066 977,080 32,466 1,724,264
160,076 1,022,979 1,187,045 275,670 13,804,720
3,689,061
2,233,483
309,528 121,759 2,741,319
60,733 2,717,220
93,103
17,500 20,670 47,502
- - 327,028 203,162 11,521,688
160,076 1,022,979 860,017 72,508 2,283,032
2,412,521
(80,000) (309,605) (450,000) (1,858,364)
(80,000) (309,605) (450,000) - 554,157
80,076 713,374 410,017 72,508 2,837,189
1,741,737 2,262,793 220,871 (552,833) 11,483,236
1,821,813$ 2,976,167$ 630,888$ (480,325)$ 14,320,425$
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
94
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 24,172$ 43,215$ 98,178$ 235,319$ 924,106$ 1,324,990$
Restricted cash - deposits 15,000 15,000
Receivables (net of allowances):
Taxes 6,400 18,568 24,968
Special assessments & loans 485,656 168,084 2,480 656,220
Total assets 509,828 211,299 104,578 253,887 941,586 2,021,178
LIABILITIES
Interfund loans payable 697,407 697,407
Deposits payable from restricted assets 15,000 15,000
Total liabilities 697,407 - - - 15,000 712,407
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 485,657 168,084 6,400 18,567 2,480 681,188
FUND BALANCES
Nonspendable
Restricted
Geneneral obligation debt 98,178 235,320 333,498
Special assessment debt 4,197 43,215 47,412
Committed
Debt guarantee 924,106 924,106
Unassigned (677,433) (677,433)
Total fund balances (673,236) 43,215 98,178 235,320 924,106 627,583
Total liabilities, deferrend inflows of
resources and fund balances 509,828$ 211,299$ 104,578$ 253,887$ 941,586$ 2,021,178$
Combining Balance Sheet
Nonmajor Debt Service Funds
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
95
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 137,905$ 377,062$ 514,967$
Miscellaneous revenue 112,012 35,886 162 434 10,794 159,288
Total revenues 112,012 35,886 138,067 377,496 10,794 674,255
EXPENDITURES
Current:
Transportation 14,278 14,278
Debt service:
Principal 8,424 160,000 100,000 365,000 633,424
Interest 15,919 14,800 38,802 14,902 84,423
Total expenditures 38,621 174,800 138,802 379,902 - 732,125
Excess of revenues
over (under) expenditures 73,391 (138,914) (735) (2,406) 10,794 (57,870)
OTHER FINANCING SOURCES (USES)
Transfers out (129,074) (129,074)
Total other financing sources (uses)(129,074) - - - - (129,074)
Net change in fund balances (55,683) (138,914) (735) (2,406) 10,794 (186,944)
Fund balances - beginning (617,553) 182,129 98,913 237,726 913,312 814,527
Fund balances - ending (673,236)$ 43,215$ 98,178$ 235,320$ 924,106$ 627,583$
Nonmajor Debt Service Funds
For the Year Ended December 31, 2013
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
96
Original Final Variance to
Budget Budget Actual Final Budget
REVENUES
Intergovernmental revenue 2,354,616 3,190,648 1,740,087 (1,450,561)
Miscellaneous revenue 102,500 102,500 50,000 (52,500)
Total revenues 2,457,116 3,293,148 1,790,087 (1,503,061)
EXPENDITURES
Capital outlay:
General government - - 1,141,334 1,141,334
Public safety 2,781,858 5,974,429 2,713,099 (3,261,330)
Transportation 4,141,239 4,141,239 2,994,371 (1,146,868)
Culture and recreation 888,000 888,000 254,247 (633,753)
Total expenditures 7,811,097 11,003,668 7,103,051 (3,900,617)
Excess of revenues over (under) expenditures (5,353,981) (7,710,520) (5,312,964) 2,397,556
OTHER FINANCING SOURCES
Transfers in 5,442,728 6,918,215 4,478,413 (2,439,802)
Total other financing sources 5,442,728 6,918,215 4,478,413 (2,439,802)
Net change in fund balances 88,747 (792,305) (834,551) (42,246)
Fund balances - beginning 14,708 14,708 1,033,325 1,018,617
Fund balances - ending 103,455$ (777,597)$ 198,774$ 976,371$
CONSTRUCTION FUND
Statement of Revenues, Expenditures, and Changes in Fund Balances-Budget to Actual
Construction Fund - Major Fund
For the Year Ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
97
Final Variance to Final Variance to
Budget Actual Final Budget Budget Actual Final Budget
Special Revenue Funds
City Street Fund 2,698,070$ 2,236,621$ (461,449)$ 2,838,649$ 1,914,868$ (923,781)$
Arterial Street Fund 477,550 472,857 (4,693) 1,435,165 198,474 (1,236,691)
I-82 Traffic Impact Fund 281,020 184,973 (96,047) 257,613 171,693 (85,920)
Street Overlay Fund 813,000 842,508 29,508 614,117 459,034 (155,083)
Community Dev Block Grant Fund 1,505,004 825,744 (679,260) 1,672,515 777,845 (894,670)
ML King Community Center Fund 150,500 158,971 8,471 162,731 142,517 (20,214)
Ambulance Services Fund 5,601,200 3,996,936 (1,604,264) 3,761,788 3,690,329 (71,459)
City View Cemetery Fund 266,720 276,574 9,854 285,971 272,587 (13,384)
Blvd Perpetual Maintenance Fund 254,388 110,236 (144,152) 70,000 70,000 -
Athletic Program Fund 159,150 131,141 (28,009) 165,592 141,699 (23,893)
Golf Course 1,783,275 1,711,550 (71,725) 1,657,960 1,711,125 53,165
Senior Center Fund 285,450 285,882 432 311,968 318,721 6,753
Multi-Modal Fund 66,602 74,185 7,583 47,394 47,681 287
School Impact Fees 1,768,100 1,566,449 (201,651) 1,768,000 1,566,997 (201,003)
Rivershore Trail & Marina Fund 37,300 39,657 2,357 32,107 30,565 (1,542)
Special Lodging Assess Fund 160,000 188,403 28,403 219,595 193,891 (25,704)
Litter Abatement Fund 12,500 12,507 7 15,830 14,488 (1,342)
Revolving Abatement Fund 35,225 109,882 74,657 54,209 67,339 13,130
TRAC Develop & Operating Fund 323,130 346,395 23,265 352,435 220,404 (132,031)
Park Development Fund 146,200 160,076 13,876 90,000 80,000 (10,000)
Capital Improvement Fund 802,000 1,022,979 220,979 735,514 309,605 (425,909)
Economic Development Fund 646,900 1,187,045 540,145 1,264,096 777,028 (487,068)
Stadium/Convention Ctr Fund 243,800 275,670 31,870 261,506 203,162 (58,344)
Total 18,517,084 16,217,241 (2,299,843) 18,074,755 13,380,052 (4,694,703)
Debt Service Funds
LID Loans 831,234 112,012 (719,222) 836,586 167,695 (668,891)
LID Bonds 178,240 35,886 (142,354) 174,800 174,800 -
Library/Fire Station Bonds 138,675 138,067 (608) 138,850 138,802 (48)
2002 UTGO Bonds 380,175 377,496 (2,679) 379,950 379,902 (48)
LID Guarantee 1,800 10,794 8,994 10,794 - (10,794)
Total 1,530,124 674,255 (855,869) 1,540,980 861,199 (679,781)
Permanent Funds
Cemetery Perpetual Care 15,550 17,073 1,523 - - -
Total 15,550$ 17,073$ 1,523$ -$ -$ -$
Schedule of Revenues and Expenditures - Budget to Actual
For the Year Ended December 31, 2013
Nonmajor Other Governmental Funds
Revenues Expenditures
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
98
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 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.
Nonmajor Proprietary Funds
Enterprise Funds
Internal Service Funds
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
99
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 131,548$ 4,621,663$ 225,207$ 12,846$ 207,783$ 2,335,618$ 7,534,665$
Restricted cash - IBNR 549,430 549,430
Interfund loans - current portion 43,890 43,890
Total current assets 131,548 4,665,553 774,637 12,846 207,783 2,335,618 8,127,985
Noncurrent assets:
Interfund loans 145,504 145,504
Construct work in process 35,816 35,816
Machinery and equipment 2,852,015 1,154,968 4,006,983
Total noncurrent assets - 2,997,519 - - - 1,190,784 4,188,303
Total assets 131,548 7,663,072 774,637 12,846 207,783 3,526,402 12,316,288
LIABILITIES
Current liabilities:
Accounts payable 24,205 80,956 9,060 92,911 207,132
IBNR payable from restricted assets 549,430 549,430
Compensated absences - current 19,534 8,320 27,854
Total current liabilities 43,739 - 630,386 - 17,380 92,911 784,416
Total liabilities 43,739 - 630,386 - 17,380 92,911 784,416
NET POSITION
Net investment in capital assets 2,852,015 1,190,784 4,042,799
Unrestricted 87,809 4,811,057 144,251 12,846 190,403 2,242,707 7,489,073
Total net position 87,809$ 7,663,072$ 144,251$ 12,846$ 190,403$ 3,433,491$ 11,531,872$
Business-Type ActivitiesGovernmental Activities
Combining Statement of Net Position
Nonmajor Internal Services Fund
December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
100
Equipment Equipment Medical Equipment Equipment Total
Rental Rental Insurance Central Rental Rental Internal
Operations Replacement Fund Stores Operations Replacement Service
OPERATING REVENUES
Charges for goods and services 4,882,240$ 4,882,240$
Miscellaneous interfund charges 863,650$ 1,034,663$ 325,246$ 465,100$ 2,688,659
Total operating revenues 863,650 1,034,663 4,882,240 - 325,246 465,100 7,570,899
OPERATING EXPENSES
Depreciation 541,686 255,393 797,079
Salaries & wages 231,436 44,173 275,609
Personnel benefits 97,894 19,370 117,264
Supplies 556,674 233,132 789,806
Services 139,029 4,880,094 47,394 5,066,517
Total operating expenses 1,025,033 541,686 4,880,094 - 344,069 255,393 7,046,275
OPERATING INCOME (LOSS)(161,383) 492,977 2,146 - (18,823) 209,707 524,624
NONOPERATING REVENUES (EXPENSES)
Investment income 310 16,056 701 17 321 2,861 20,266
Total nonoperating revenues 310 16,056 701 17 321 2,861 20,266
Income (loss) before contributions and
transfers (161,073) 509,033 2,847 17 (18,502) 212,568 544,890
Capital contributions 157,788 157,788
Transfers in 212,000 158,000 370,000
Changes in net position (161,073) 878,821 2,847 17 (18,502) 370,568 1,072,678
Net position - beginning 248,882 6,784,251 141,404 12,829 208,905 3,062,923 10,459,194
Net position - ending 87,809$ 7,663,072$ 144,251$ 12,846$ 190,403$ 3,433,491$ 11,531,872$
Governmental Activities
Combining Statement of Revenues, Expenses, and Changes in Net Position
Nonmajor Internal Service Funds
For the Year Ended December 31, 2013
Business-Type Activities
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
101
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 863,650$ 1,034,663$ 4,882,240$ 325,246$ 465,100$ 7,570,899$
Payments to employees (324,411) (60,528) (384,939)
Payments to suppliers (708,439) (21,460) (5,315,281) (277,282) 92,911 (6,229,551)
Net cash provided by operating activities (169,200) 1,013,203 (433,041) - (12,564) 558,011 956,409
CASH FLOW FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Transfers in for capital 212,000 158,000 370,000
Acquisition of capital assets (686,787) (289,396) (976,183)
Net cash used in capital activities - (474,787) - - - (131,396) (606,183)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment sales and income 310 16,056 701 17 321 2,861 20,266
Interfund loans 96,000 96,000
Net cash provided from investing activities 310 112,056 701 17 321 2,861 116,266
Net increase in cash and cash equivalents (168,890) 650,472 (432,340) 17 (12,243) 429,476 466,492
Beginning cash and cash equivalents 300,438 3,971,191 657,547 12,829 220,026 1,906,142 7,068,173
Ending cash and cash equivalents 131,548$ 4,621,663$ 225,207$ 12,846$ 207,783$ 2,335,618$ 7,534,665$
CASH PROVIDED BY OPERATING
ACTIVITIES:
Net operating income (loss)(161,383)$ 492,977$ 2,146$ (18,823)$ 209,707$ 524,624$
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
Depreciation 541,686 255,393 797,079
Increase (decrease) in accounts payable (12,736) (21,460) (435,187) 3,244 92,911 (373,228)
Increase in compensated absences 4,919 3,015 7,934
Net cash provided by operating activities (169,200)$ 1,013,203$ (433,041)$ -$ (12,564)$ 558,011$ 956,409$
Combining Statement of Cash Flows
Nonmajor Internal Service Funds
For the Year Ended December 31, 2013
Governmental Activities Business-Type Activities
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
102
Pension and other post-employment benefit trust funds are used to report resources that are required to be
held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution
plans, other postemployment benefit plans or other employee benefit plans.
Agency funds 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.
Trust and Agency Funds
Pension and Other Postemployment Benefit Trust Funds
Agency Funds
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
103
Other Total
Fire Postemployment Pension and Other
Pension Benefit Postemployment
Trust Trust Benefits
ASSETS
Cash & cash equivalents 198,415$ 208,686$ 407,101$
Investments at fair market value:
LID note 66,590 66,590
Federal agency 78,789 78,789
Mutual funds 1,806,966 2,308,035 4,115,001
Total assets 2,150,760 2,516,721 4,667,481
LIABILITIES
Total liabilities - - -
NET POSITION
Held in trust for pension benefits
and other purposes 2,150,760$ 2,516,721$ 4,667,481$
Combining Statement of Net Position
Fiduciary Funds
December 31, 2013
Trust Funds
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
104
Public Animal Senior
Flexible Facility Control Center Payroll Total
Spending District Authority Association Clearing Agency
ASSETS
Cash & cash equivalents 7,850$ 78,439$ 102,570$ -$ 421,270$ 610,129$
Total assets 7,850 78,439 102,570 - 421,270 610,129
LIABILITIES
Accounts payable 7,850 421,270 429,120
Due to other governments 78,439 102,570 - 181,009
Total liabilities 7,850$ 78,439$ 102,570$ -$ 421,270$ 610,129$
Combining Statement of Assets and Liabilities
Fiduciary Funds (continued)
December 31, 2013
Agency Funds
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
105
Other Total
Fire Postemployment Pension and Other
Pension Benefit Postemployment
Trust Trust Benefits
ADDITIONS
Taxes 47,624$ 47,624$
Investment earnings
Interest 8,419 363 8,782
Dividends 143,627 93,028 236,655
Net change in fair value of investments 298,831 465,247 764,078
Total additions 498,501 558,638 1,057,139
DEDUCTIONS
Pension benefits 152,287 152,287
Medical premiums 113,471 113,471
Administrative expenses 3,914 3,190 7,104
Total deductions 156,201 116,661 272,862
Change in net assets 342,300 441,977 784,277
Net position - beginning 1,808,460 2,074,744 3,883,204
Net position - ending 2,150,760$ 2,516,721$ 4,667,481$
Combining Statement of Changes in Net Position
Fiduciary Funds
For The Year Ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
106
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
ASSETS
Cash & cash equivalents 2,354$ 149,555$ 144,059$ 7,850$ 73,480$ 78,437$ 73,478$ 78,439$
Total assets 2,354 149,555 144,059 7,850 73,480 78,437 73,478 78,439
LIABILITIES
Accounts payable 2,354 149,555 144,059 7,850 - -
Due to other governments - 73,480 78,437 73,478 78,439
Total liabilities 2,354$ 149,555$ 144,059$ 7,850$ 73,480$ 78,437$ 73,478$ 78,439$
Pasco Public Facility DistrictFlexible Spending Accounts
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
107
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
71,090$ 147,515$ 116,035$ 102,570$ 391$ 22$ 413$ -$
71,090 147,515 116,035 102,570 391 22 413 -
- 391 22 413 -
71,090 147,515 116,035 102,570 -
71,090$ 147,515$ 116,035$ 102,570$ 391$ 22$ 413$ -$
Senior Center AssociationAnimal Control Authority
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
108
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
ASSETS
Cash & cash equivalents 305,788$ 30,434,166$ 30,318,684$ 421,270$ 453,103$ 30,809,695$ 30,652,669$ 610,129$
Total assets 305,788 30,434,166 30,318,684 421,270 453,103 30,809,695 30,652,669 610,129
LIABILITIES
Accounts payable 305,788 30,434,166 30,318,684 421,270 308,533 30,583,743 30,463,156 429,120
Due to other governments 144,570 225,952 189,513 181,009
Total liabilities 305,788$ 30,434,166$ 30,318,684$ 421,270$ 453,103$ 30,809,695$ 30,652,669$ 610,129$
Total Agency FundsPayroll Clearing
Combining Statement of Changes in Assets and Liabilities
Agency Funds (continued)
For the Year Ended December 31, 2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
109
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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
110
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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 $188,996
Restricted for:
Restricted *4,618 5,734 5,738 3,941 4,005 3,551 383 400
Cemetery (nonexpendable) 418 434
Contested tax & drug forefits 228
Bicentennial celebration 6
Streets and boulevards 6,489 7,205
Litter and housing abatement 289 329
Park development 1,739 1,821
Culture and recreation 133
Capital improvement 2,259 2,976
Economic development 221 3
General obligation debt 337 334
Special assessment debt 240 48
Unrestricted 16,081 15,366 15,944 22,710 23,750 24,111 28,241 30,166 14,616 11,883
Total governmental activities net position 59,248 68,904 80,732 100,709 113,049 125,264 150,967 172,063 190,196 214,390
Business-type activities
Net investment capital assets 59,694 69,646 93,667 97,635 109,736 1,136,995 124,771 129,532 130,321 129,664
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 19,115
Total business-type activities net position 74,614 94,008 101,717 111,088 116,195 1,150,390 136,171 141,899 145,040 148,779
Primary government
Net investment in capital assets 98,243 117,450 152,717 171,694 195,030 211,596 247,114 271,029 293,903 318,660
Restricted 5,364 7,055 7,536 4,783 4,752 4,328 383 400 11,998 13,511
Unrestricted 30,255 38,407 22,196 35,321 29,462 36,729 39,641 42,533 29,335 30,998
Total primary government net assets $133,862 $162,912 $182,449 $211,798 $229,244 $252,653 $287,138 $313,962 $335,236 $363,169
* Break out not available prior to 2012
Net Position by Component
Fiscal Year Ended December 31
(accrual basis of accounting)
Last Ten Fiscal Years
(amounts expressed in thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
111
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Expenses
Governmental activities:
General government $7,374 $8,116 $8,889 $9,649 $10,410 $12,059 $6,921 $6,517 $6,730 $7,060
Public safety 13,056 14,004 16,592 17,214 18,296 18,743 19,419 19,834 20,498 22,491
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 14,097
Economic environment 819 934 1,647 1,117 1,199 1,385 797 1,041 2,386 4,456
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 8,003
Interest on long term debt 774 714 682 640 587 413 512 517 315 265
Total governmental activities expenses 32,824 36,340 36,344 40,752 44,395 47,058 43,756 48,097 51,479 56,372
Business-type activities
Water 4,289 3,950 5,051 5,180 5,990 6,029 6,538 6,845 6,748 7,780
Sewer 5,812 5,878 5,724 6,275 6,316 6,826 6,944 7,922 7,435 7,223
Water process reuse 1,417 1,466 1,558 1,503 1,569 1,558 1,444 1,501 1,185 1,542
Storm water 316 377 518 595 607 735 791 959 1,028 1,165
Irrigation 356 544 748 936 1,015 1,009 1,045 1,038 1,099 1,226
Total business-type activities expenses 12,190 12,215 13,599 14,489 15,497 16,157 16,762 18,265 17,495 18,936
Total primary government expenses 45,014 48,555 49,943 55,241 59,892 63,215 60,518 66,362 68,974 75,308
Program 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 4,578
Public safety 1,455 1,784 1,862 2,263 2,626 3,006 3,684 3,893 4,415 4,398
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 3,507
National & economic environment 2,007 1,961 1,780 1,579 1,135 1,431 17 1,459 2,734 3,361
Health and human services 1,851 30 14
Culture and recreation 1,048 744 583 465 445 480 604 2,161 1,838 2,471
Operating grants and contributions 846 1,199 1,045 1,074 376 504 1,448 1,763 1,043 639
Capital grants and contributions 6,863 6,547 9,244 3,438 14,753 13,283 25,488 25,117 16,144 30,631
Total governmental activities program revenues 17,171 17,840 21,651 17,152 27,314 29,591 37,229 39,530 30,479 49,585
Business-type activities
Charges for services 12,153 13,112 14,186 14,307 17,232 18,319 18,148 17,774 18,044 17,977
Operating grants and contributions 0 0 0 0 0 0 0 370 412 42
Capital grants and contributions 9,911 14,203 3,625 6,377 3,254 3,061 4,654 5,671 5,586 4,214
Total business-type activities program revenues 22,064 27,315 17,811 20,684 20,486 21,380 22,802 23,815 24,042 22,233
Total primary government program revenues $39,235 $45,155 $39,462 $37,836 $47,800 $50,971 $60,031 $63,345 $54,521 $71,818
(accrual basis of accounting)
(amounts expressed in thousands)
Changes in Net Position
Fiscal Year Ended December 31
Last Ten Fiscal Years
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
112
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Net (expenses)/revenues
Governmental activities ($15,653)($18,500)($14,693)($23,599)($17,078)($17,467)($6,527)($8,567)($21,000)($6,787)
Business-type activities 9,874 15,100 4,212 6,195 4,504 5,223 6,040 5,550 6,547 3,297
Total primary government (5,779)(3,400)(10,481)(17,404)(12,574)(12,244)(487)(3,017)(14,453)(3,490)
General revenues and other 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 7,149
Sales and use taxes 7,412 7,857 8,226 8,646 8,843 8,000 8,245 9,403 10,284 11,472
Occupational utility taxes 6,456 7,100 7,561 7,842 8,689 8,924 8,917 8,914 8,843 8,894
Other taxes 2,838 3,396 3,305 3,729 4,655 4,686 1,738 1,838 2,046 2,117
Intergovernmental *1,663 2,599 3,161 1,566
Investment and miscellaneous 2,630 3,365 2,412 2,892 987 852 1,147 691 1,486 137
Transfers (2,199)(584)113 846 613 566 (149)3,439 (355)
Total governmental activities 21,836 26,017 26,920 29,729 29,842 29,304 27,641 30,292 35,917 30,980
Business-type activities
Investment and miscellaneous 4,105 4,120 3,758 4,184 425 399 1,062 177 33 88
Transfers 1,378 (58)(183)(866)(613)(566)149 (3,439)355
Total business-type activities 5,483 4,062 3,575 3,318 (188)(167)1,211 177 (3,406)443
Total primary government 27,319 30,079 30,495 33,047 29,654 29,137 28,852 30,469 32,511 31,423
Changes in net position**
Governmental activities 6,183 7,517 12,227 6,130 12,764 11,837 21,114 21,725 14,917 24,193
Business-type activities 15,357 19,162 7,787 9,513 4,316 5,056 7,251 5,727 3,141 3,740
Total primary government $21,540 $26,679 $20,014 $15,643 $17,080 $16,893 $28,365 $27,452 $18,058 $27,933
*Included with "Other taxes" until 2010.
** Beginning Net Posisiton were restated based on prior period adjustments recorded in 2010.
Fiscal Year Ended December 31
Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
113
Fiscal Year
Ended
December 31
Property
Taxes
Sales and
Use Taxes B&O Taxes
Excise and Other
Taxes Total Taxes
2004 4,699 7,412 6,456 2,677 *21,244
2005 4,883 7,857 7,100 3,223 *23,063
2006 5,303 8,226 7,561 3,305 *24,395
2007 5,774 8,646 7,842 3,729 *25,991
2008 6,056 8,843 8,689 4,655 *28,243
2009 6,276 8,000 8,924 4,686 *27,886
2010 6,080 8,245 8,917 1,739 24,981
2011 6,847 9,403 8,914 1,838 27,002
2012 6,659 10,284 8,843 2,046 27,832
2013 7,149 11,472 8,894 2,117 29,632
Source:
Statement of activities
Prior CAFR
* Also included intergovernmental revenues
(amounts expressed in thousands)
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
114
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
General fund
Assigned 3,208$
Restricted
Bi-centennial celebration 6$
Contested tax & drug forefits 228$
Committed
Landfill claims 401 405
Assigned
2013 budget appropriation 2,872
Unassigned 8,050 6,264 5,612
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$ 6,245$
All other governmental funds
Nonspendable
Cemetery permanent fund 400$ 418$ 434$
Restricted 9,496
Street and boulevard**6,489 7,205
Litter & housing abatement**288 329
Park development**1,739 1,822
Culture and recreation 132
Capital improvements**2,260 2,976
Economic development**221 3
General obligation debt**337 334
Special assessment debt**240 47
Committed 5,375
Special revenue funds*1,117 2,365
Construction projects*861 199
Debt guarantee*1,033 924
Unassigned (178) (1,254) (1,188)
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$ 15,582$
Fund Balance of Governmental Funds
Fiscal Year Ended December 31
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
115
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Revenue
Taxes 20,491$ 22,196$ 23,362$ 24,516$ 25,716$ 25,339$ 24,960$ 26,832$ 28,017$ 29,602$
Licenses and permits 2,337 2,338 2,116 1,924 1,616 1,860 1,966 1,874 1,862 1,777
Intergovernmental revenue 2,628 3,494 10,802 4,719 5,293 4,041 7,929 8,252 4,901 5,785
Charges for services 3,887 4,226 4,388 4,738 4,771 5,285 5,502 7,475 9,509 11,486
Fines and forfeitures 740 746 829 1,054 1,017 1,063 944 955 891 985
Investment and miscellaneous 2,453 3,075 2,803 2,734 2,310 2,963 2,930 2,547 2,767 2,559
Total revenues 32,536 36,075 44,300 39,685 40,723 40,551 44,231 47,935 47,947 52,194
Expenditures
Current:
General government 4,337 4,817 5,026 5,001 5,341 5,847 6,547 6,087 6,381 6,705
Public safety 12,734 13,588 15,593 16,820 17,711 18,418 18,820 18,780 19,990 22,365
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 3,897
Economic environment 461 648 681 745 671 944 54 872 2,137 4,287
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 6,978
Capital outlay *5,878 8,222 14,188 5,737 7,345 7,718
General government 104 154 193 1,426
Public safety 124 35 648 2,726
Physical environment 868 7
Transportation 3,441 3,276 3,141 2,994
Economic environment 419 657 1,527 254
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 1,194
Interest 774 714 682 640 587 413 512 517 316 265
Total expenditures 31,102 35,152 43,903 37,624 40,713 42,950 44,774 43,669 50,752 53,091
Excess of revenues
over (under) expenditures 1,434 923 397 2,061 10 (2,399) (543) 4,266 (2,805) (897)
Other financing sources (uses)
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 7,029
Operating transfers out (4,628) (6,068) (5,710) (4,247) (4,542) (4,527) (6,708) (5,229) (6,689) (7,596)
Total other financing sources (uses)236 (675) 155 894 559 1,156 645 253 (255) (567)
Net change in fund balances 1,670$ 248$ 552$ 2,955$ 569$ (1,243)$ 102$ 4,519$ (3,060)$ (1,464)$
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%3.0%
* Break out not available prior to 2010
Fiscal Year Ended December 31
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
116
Fiscal Year
Ended
December 31
Residential
Property
Commercial
Property
Other
Property
Total Taxable
Assessed
Valuation
Total
Direct Tax
Rate
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
2013 2,433,119 731,717 165,958 3,330,794 2.16
Source: Franklin County Assessor
Real Property
Assessed Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
117
Fiscal Year
Ended
December 31 Admissions Cable TV Solid Waste Water Irrigation *Sewer Storm **Reuse **Gas Telephone Electricity Total
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
2013 157 404 512 689 89 666 97 124 525 1,711 3,465 8,439
* Previously included in Water
** Previously included in Sewer
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
Operating
millage
Debt
service
millage
Total city
millage
Operating
millage
Debt
service
millage
Total
county
millage
Operating
millage
Debt
service
millage
Total
school
millage
Special
districts
Total direct
and
overlapping
rates
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
2013 1.967 0.197 2.164 1.508 0.201 1.709 4.455 2.207 6.662 0.329 10.864
Source: Franklin County Assessors (Property tax booklet)
1 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.
City of Pasco
Property Tax Rates
Direct and Overlapping 1 Governments
Last Ten Fiscal Years
Overlapping Rates
School DistrictCounty
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
118
Fiscal Year
Ended
December 31 City of Pasco 1 Franklin County 1
2004 $747,240,717 $828,361,101
2005 781,596,534 862,138,345
2006 811,292,511 929,717,630
2007 856,422,037 1,057,004,462
2008 877,529,074 1,052,102,171
2009 802,641,083 917,095,762
2010 825,267,329 964,584,879
2011 839,174,222 1,007,226,337
2012 861,063,371 1,037,096,483
2013 696,469,407 829,435,412 **
1 Source: Washington State Department of Revenue
** Fourth quarter not available
Taxable Retail Sales
Last Ten Fiscal Years
Taxpayer
Taxable
assessed
value Rank
Percentage
of total
taxable
Taxable
assessed
value Rank
Percentage
of total
taxable
Syngenta Seed Inc $33,025 1 0.92%0.00%
Pasco Processing LLC 25,161 2 0.70%31,316 1 1.09%
Bybee Foods LLC 20,981 3 0.59%
Twin City Foods, Inc.16,609 4 0.46%22,098 2 0.77%
The Crossing at Chapel Hill 16,174 5 0.45%16,085 4 0.56%
Broadmoor LLC 15,382 6 0.43%16,432 3 0.57%
Wal-Mart, Inc 14,056 7 0.39%13,745 6 0.48%
Western State Equipment 13,480 8 0.38%14,400 5 0.50%
Reser's Fine Foods, Inc 12,488 9 0.35%
Art Mtg Borrower Propco 10,324 10 0.29%
Old Standard Life Insurance 11,234 10 0.39%
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%
$177,680 4.96%$163,438 5.69%
Source: Franklin County Assessor's Office
* Oldest comparative information that is available.
2013 2008*
Principal Property Taxpayers
Current Year and Six Years Prior
(amounts expressed in thousands)
Fiscal Year Ended December 31
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
119
Taxpayer
Tax
Revenue Rank
Percentage of
Total Tax
Revenue
Tax
Revenue Rank
Percentage
of Total Tax
Revenue
Company A $3,859 1 45.73%$2,586 1 39.71%
Company B 603 2 7.15%407 3 6.25%
Company D 559 3 6.62%388 4 5.96%
Company C 540 4 6.40%
Company E 434 5 5.14%341 5 5.24%
Company F 404 6 4.79%
Company G 275 7 3.26%477 2 7.32%
Company J 189 8 2.24%109 8 1.67%
Company I 111 9 1.32%139 7 2.13%
Company N 95 10 1.13%
Company K 302 6 4.64%
Company L 73 9 1.12%
Company M 71 10 1.09%
$7,069 83.78%$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
Principal B&O Taxpayers
Current Year and Nine Years Prior
(amounts expressed in thousands)
2004*
Fiscal Year Ended December 31
2013
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
120
2013 2006
Sales % of Sales % of
Tax Total Tax Total
Industries Paid Rank Sales Tax Paid Rank Sales Tax
Motor vehicle and parts dealers $1,938,847 1 24.67%$1,553,185 1 20.95%
Wholesale trade, durable goods 614,100 2 7.82%776,944 2 10.48%
General merchandise stores 536,842 3 6.83%408,218 5 5.51%
Food services, drinking places 530,132 4 6.75%338,591 8 4.57%
Construction of buildings 494,009 5 6.28%421,800 4 5.69%
Building material and garden 369,639 6 4.70%249,406 9 3.36%
Specialty trade contractors 362,822 7 4.62%628,960 3 8.48%
Rail Transportation 283,802 8 3.61%
Rental and leasing services 246,267 9 3.13%357,386 7 4.82%
Telecommunications 244,903 10 3.12%200,425 10 2.70%
Repair and maintenance
Miscellaneous store retailers 381,601 6 5.15%
Other 2,236,575 28.47%2,097,093 28.29%
Total $7,857,938 100.00%7,413,609$ 100.00%
Source: Washington State Department of Revenue tax tools
Top Ten Industries that Generate Sales Tax
Current Year and Seven Years Prior
Fiscal Year Ended December 31
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
121
Fiscal Year Ended
December 31
Total tax
levy for
fiscal year Amount
Percentage
of levy
Collections in
Subsequent
years 1 Amount
Percentage
of levy
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%158 6,045 99.7%
2009 5,738 5,579 97.2%160 5,739 100.0%
2010 6,400 6,211 97.0%135 6,346 99.2%
2011 6,638 6,480 97.6%115 6,595 99.4%
2012 6,850 6,693 97.7%92 6,785 99.1%
2013 7,011 6,833 97.5%0 6,833 97.5%
Source: Franklin County Treasurer's Office Tax Rolls
1 County provides four prior years and combines five years or more together.
Total collections to date
Collected within the fiscal
year of the levy
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
122
Fiscal Year
Ended
December 31
General
Obligation
Bonds
Special
Assessments
External
Loans &
Notes
Water/ Sewer
Bonds
Other
Loans
Payable
Total
Primary
Government
Percentage
of Personal
Income
Per
Capita 1
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
2013 3,835 160 284 30,355 10,334 44,968 Not available 685
1 This ratio was calculated using population for the applicable fiscal year.
Note: Details regarding the City's outstanding debt can be found in the notes and schedules to the financial statements.
Business-type Activities
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Governmental Activities
Fiscal Year
Ended
December 31
General
obligations
bonds
Less: Amounts
available in debt
service fund Total
Percentage of
estimated actual
taxable value 1
of property
Per
capita 2
2004 14,500 2,865 11,635 0.6537%285
2005 13,650 2,973 10,677 0.5413%242
2006 12,955 3,105 9,850 0.5396%207
2007 11,850 2,824 9,026 0.3635%180
2008 10,915 2,787 8,128 0.2841%155
2009 9,945 1,231 8,714 0.2969%160
2010 8,940 1,322 7,618 0.2625%135
2011 7,670 1,487 6,183 0.2055%101
2012 4,710 1,494 3,216 0.0999%51
2013 3,835 1,325 2,510 0.0754%38
Note: Details regarding the City's outstanding debt can be found in the notes and schedules statements.
to the financial statements.
1 See the schedule of assessed value taxable property on page 116 for property value data.
2 See schedule of population on page 126
Ratios of General Bonded Debt Outstanding
and Bonded per Capita
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
123
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Debt limit $44,496 $49,691 $57,846 $62,079 $72,012 $73,370 $72,923 $75,213 $80,378 $88,541
Total net debt applicable to limit 11,894 16,204 15,341 10,470 13,252 12,501 11,954 11,670 4,966 174
Legal debt margin $32,602 $33,487 $42,505 $51,609 $58,760 $60,869 $60,969 $63,543 $75,412 $88,367
Total net debt applicable to the limit as a
percentage of debt limit 26.73%32.61%26.52%16.87%18.40%17.04%16.39%15.52%6.18%0.20%
Legal debt margin calculation for fiscal year 2013
Assessed value 3,541,628$
GENERAL PURPPOSES
Limit of 2.5% of Assessed Value $88,541
Councilmanic:
Capacity (1.5% of Assessed Value)53,124
Less:
GO Bonds Outstanding (3,235)
State LOCAL Loans (83)
TRAC Obligation (99)
Airport Fire Station (36)
Compensated Absences 1,897
OPEB 1,982
Total debt 426
Remaining capacity without a vote 53,550
Voter Approved:
Capacity (1.0% of Assessed Value)35,416
Less:
Sourrces: GO Bonds Outstanding (600)
Franklin County Assessors Office-(Steve Marks) *Remaining capacity with a vote 34,816
Debt Schedule Statement
leases without a vote. The legal limit for capital leases debt (RCW 35.42.200) is included in the 2.5 percent and does not constitute extra allowable debt.
Legal Debt Margin
(amounts expressed in thousands)
The 1.5 percent is the maxium limit for gerneral purposes without a vote (councilmanic debt). A council may choose to allocate any portion of this debt capacity to the "voted" category.
If done so, this 1.5 percent of the indebtedness available without vote is to be proportionately reduced by the excess "voted" debt over 1 percent.
Last Ten Fiscal Years
Note: The total indebtedness for general purposes with or without a vote cannot exceed 2.5% of the value of taxable property. The general purposes indebtedness includes debt for capital
Fiscal Year Ended December 31
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
124
Direct debt Amount
Voted General Obligation 600$
Councilmanic General Obligation Debt 3,453
Total direct debt 4,053
Overlapping Debt
Jurisdiction Outstanding debt Percent applicable
Estimated Share of
Overlapping Debt
Franklin County 32,805 53.77%17,639
Pasco School District 158,411 63.75%100,987
Port of Pasco 9,279 53.97%5,008
Total overlapping debt 123,634
Total direct & overlapping debt 127,687$
Governmental activities debt ratios
Assessed valuation- 2012 (established in November, 2011 for the 2012 tax year)3,541,628$
Population 63
Net direct debt to assessed valuation 0.11%
Net direct debt and overlapping debt to assessed valuation 3.61%
Assessed valuation per capita 56,216$
Net direct debt per capita 64$
Direct debt and overlapping debt per capita 2,027$
Councilmanic debt and other obligations consist of:G.O. Bonds Outstanding 3,235$
State LOCAL Loans 83
T.R.A.C. Obligation 99
Airport Fire Station 36
3,453$
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- tax booklet
Direct and Overlapping Governmental Activities Debt
As of December 31, 2013
(amounts expressed in thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
125
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Operating Revenues
Water Sales (1)4,589,539$ 4,910,473$ 5,455,176$ 5,619,985$ 5,304,341$ 5,515,937$ 5,596,298$ 6,797,470$ 6,989,958$ 7,087,462$
Irrigation Sales (1)678,321 717,653 753,251 874,036 917,076 954,204
Sewer Sales (1)6,788,379 7,472,547 7,838,131 7,809,425 5,997,993 6,265,581 5,788,397 5,614,564 5,705,414 5,813,572
Stormwater Sales (1)442,174 462,205 401,279 867,801 883,305 972,375
Process Water Reuse Sales (1)1,654,699 1,720,517 1,723,291 1,492,743 1,942,683 1,453,597
Other Utility Charges (2)3,257,011 3,728,284 3,004,086 2,418,505 1,851,282 2,320,023 3,871,057 1,907,123 1,711,031 1,935,286
Total Operating Revenues 14,634,929$ 16,111,304$ 16,297,393$ 15,847,915$ 15,928,810$ 17,001,916$ 18,133,573$ 17,553,737$ 18,149,467$ 18,216,496$
Operating & Maintenance Expenses
Salaries & Wages 1,431,535 1,712,641 1,800,937 2,014,749 2,205,177 2,662,207 2,518,691 2,535,882 2,461,588 2,599,431
Personnel Benefits 390,271 436,186 501,301 682,213 423,330 478,162 892,651 913,062 952,672 1,114,349
Supplies 213,033 234,713 282,130 361,443 673,157 479,289 854,667 1,092,728 855,626 1,121,916
Services (1)3,267,427 3,375,492 3,581,220 3,750,684 3,758,991 4,448,568 4,477,102 5,193,430 5,293,094 5,749,161
Total Operating Expenses 5,302,266$ 5,759,032$ 6,165,588$ 6,809,089$ 7,060,655$ 8,068,226$ 8,743,111$ 9,735,102$ 9,562,980$ 10,584,857$
Operating Income 9,332,663$ 10,352,272$ 10,131,805$ 9,038,826$ 8,868,155$ 8,933,690$ 9,390,462$ 7,818,635$ 8,586,487$ 7,631,639$
Non-Operating Revenue
Interest Income 350,456 491,592 572,283 579,418 371,318 359,244 228,784 116,848 39,607 41,009
Net Farmland Rental (3)550,760 582,630 626,292 686,140 530,307 698,974 375,599 498,413 - -
Total Non-Operating Revenues(4)901,216$ 1,074,222$ 1,198,575$ 1,265,558$ 901,625$ 1,058,218$ 604,383$ 615,261$ 39,607$ 41,009$
Net Revenues 10,233,879$ 11,426,494$ 11,330,380$ 10,304,384$ 9,769,780$ 9,991,908$ 9,994,845$ 8,433,896$ 8,626,094$ 7,672,648$
Other Sources of Funds
Special Assessment Repayments 292,821 309,611 306,036 297,186 575,461 42,005 387,867 283,861 225,506 257,366
Total Other Sources 292,821$ 309,611$ 306,036$ 297,186$ 575,461$ 42,005$ 387,867$ 283,861$ 225,506$ 257,366$
Max Annual Assessment Debt Service 417,156$ 417,156$ 417,156$ 417,156$ 567,968$ 390,393$ 289,613$ 212,489$ 199,582$ 203,764$
Net Revenue Available for
NonAssessment Debt Service 10,109,544$ 11,318,949$ 11,219,260$ 10,184,414$ 9,777,273$ 9,643,520$ 10,093,099$ 8,505,268$ 8,652,018$ 7,726,250$
Non-Assessment Bond Debt Service (5)1,727,518$ 1,734,065$ 2,038,365$ 2,050,932$ 1,856,078$ 2,119,329$ 2,309,689$ 2,852,381$ 2,905,851$ 2,771,990$
Non-Assessment Bond
Debt Service Coverage (6)5.85 6.53 5.50 4.97 5.27 4.55 4.37 2.98 2.98 2.79
Balance Available for Other Purposes 8,382,026$ 9,584,884$ 9,180,895$ 8,133,482$ 7,921,195$ 7,524,191$ 7,783,410$ 5,652,887$ 5,746,167$ 4,954,260$
Notes:
Irrigation included with Water 2004-2007; Stormwater and Process Water Reuse included with Sewer 2004-2007.
(1) Excludes revenue raised and used to pay interfund city taxes.
(2) Includes one time fees such as new connection, new meter, capital facility, penalties, operating grants, etc.
(3) Farm assets sold in 2011
(4) Excludes noncash capital contributions, gains/losses, capital grants, etc.
(5) Excludes debt for prepaid maturities
(6) Bond convenant requires coverage ratio of 1.25 times Maximum Annual Debt Service
Waterworks Utility Debt Service Coverage
(Per Bond Offical Statement Defintions)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
126
Pasco
Fiscal Year
Ended
December 31 Population 1 Population 1
Unemployment
rate 1 Population 1
Per capita
personal
income 1
Total Personal
Income
Median
household
income 1
Median
household
age 1
School
enrollment 2
2004 41,842 143,472 7.5%58,576 20,971 1,228,397 41,309 27.40 11,038
2005 45,846 149,776 7.0%62,572 21,048 1,317,015 42,256 27.00 11,828
2006 49,439 155,439 7.0%66,371 21,317 1,414,831 43,187 27.00 12,516
2007 52,555 160,145 6.4%69,582 20,573 1,431,510 49,337 28.66 12,610
2008 54,993 166,933 10.3%72,230 22,955 1,658,040 44,797 28.20 13,701
2009 57,579 172,169 7.26%75,111 26,342 1,978,574 43,754 27.40 14,437
2010 59,781 181,756 7.79%78,163 Not Available Not Available 53,355 Not Available 15,427
2011 61,000 184,755 7.92%80,500 Not Available Not Available 53,644 28.53 16,143
2012 62,670 187,720 8.73%82,500 Not Available Not Available 56,221 Not Available 15,994
2013 65,600 193,160 8.51%84,800 30,169 2,558,331 53,775 29.14 16,612
Fiscal Year
Ended
December 31
Average wage
per job 1
Unemployment
rate 1 Population 1
Per capita
personal
income 1
Total Personal
Income
Median
household
income 1
School
enrollment
K-12 1
2004 40,464 6.20%6,208,515 36,715 227,945,628 49,585 1,017,594
2005 41,704 5.50%6,298,816 37,651 237,156,721 50,004 1,025,015
2006 43,825 4.90%6,420,258 40,139 257,702,736 53,522 1,027,312
2007 46,114 4.50%6,525,086 42,845 279,567,310 56,141 1,031,846
2008 47,140 5.50%6,608,245 44,162 291,833,316 57,858 1,025,495
2009 47,993 9.30%6,672,159 42,112 280,977,960 55,458 1,032,678
2010 49,337 9.90%6,724,540 42,521 285,934,165 54,888 1,037,219
2011 51,139 9.20%6,767,900 44,420 300,630,118 55,500 1,037,676
2012 52,945 8.20%6,817,770 46,045 313,924,220 56,444 1,040,631
2013 Not Available Not Available 6,882,400 Not Available Not Available 58,577 1,047,353
SOURCE:
1 State of Washington Office of Financial Management
2 Pasco School District (October Enrollment) from 2002-2010. Office of Financial management 2011 October Headcount Enrollment
Franklin County
State
Last Ten Fiscal Years
Demographic and Economic Statistics
Tri Cities
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
127
Employer Employees Industry Rank Employees Industry Rank
Battelle/PNNL 4,485 Research and Development 1 4485 Research and Development 1
URS 3,500 Government 2 3500 Government 2
CH2M Hill 3,260 Government 3 3260 Government 3
ConAgra (Lamb Weston)3,057 Agriculture Products 4 3057 Agriculture Products 4
Bechtel National 2,850 Government 5 2850 Government 5
Kadlec Medical Center 2,175 Health Services 6 2175 Health Services 6
Washington River Protection 1,686 Government 7 1686 Government 8
Mission Support Alliance 1,478 Government 8 1478 Government 9
Washington Closure Hanford 1,370 Government 9 Government
Tyson Foods 1,300 Agriculture Products 10 Agriculture Products
Pasco School District 2065 K-12 Education 7
Kennewick School Dist 1473 K-12 Education 10
Source: TRIDEC
Prior years' information is not available.
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 571 Manufacturing 4 571 Manufacturing 4
Pasco processing 350 Food processor-vegetables 5 350 Food processor-vegetables 5
City of Pasco 320 City services 6 305 City services 6
Reser's Fine Foods 230 Food processor-potatoes 7 230 Food processor-potatoes 7
Franklin County 290 County services 8 190 County services 9
Douglas Fruit 210 Fruit packaging 9 210 Fruit packaging 8
West Communication 180 Call Center 10 180 Call Center 10
Source: TRIDEC
* Earliest year information was available
2011 *
Franklin County
2013
Principal Employers
Year Ended December 31
Tri Cities
2011 *
2013
Current Year & 2 Years Ago
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
128
Employment Sector 2013 2012 Oct-2011 Feb-2010 2009 2008 2007 2006 2005
Goods Producing 12,600 12,800 14,800 12,900 12,900 12,900 12,700 11,900 11,600
Natural resources & mining 5,900 6,200 7,000 6,100 5,900 6,500 6,600 6,000 5,900
Manufacturing 6,700 6,600 7,800 6,800 7,000 6,400 6,100 5,800 5,800
Service providing 88,600 84,300 87,000 82,900 82,900 80,700 78,900 74,800 75,300
Private services providing 69,700 66,000 68,400 64,800 65,600 63,700 62,500 58,900 59,300
Trade, transportation, warehousing & utilities 17,800 17,300 17,200 15,200 15,800 16,700 16,800 16,000 14,900
Retail trade 12,400 12,100 11,700 11,700 12,000 11,700 11,900 11,400 10,600
Financial activities 4,000 3,600 3,600 3,200 3,300 3,600 3,600 3,500 3,400
Professional & business services 20,700 21,000 23,500 22,600 22,700 20,600 20,300 18,500 20,600
Administrative & support services 10,200 10,000 10,700 11,400 11,600 9,400 9,800 9,000 10,000
Education & health services 11,900 11,400 11,600 10,600 10,700 10,100 9,700 9,200 8,600
Leisure and hospitality 9,400 9,100 9,300 8,400 8,500 8,600 8,100 7,900 7,900
Food services 7,000 6,700 6,900 6,100 6,200 6,300 6,000 5,600 5,600
Government 18,900 18,300 18,600 18,100 17,400 17,000 16,400 16,000 16,000
Federal & State government 4,300 4,200 4,300 4,100 3,700 37,000 3,700 3,600 3,600
Local government 14,600 14,100 14,300 14,000 13,700 13,300 12,700 12,400 12,400
Total Non-Agriculture 101,200 97,100 101,800 95,800 95,800 93,600 91,600 86,700 86,900
Total Private 82,300 78,800 83,200 77,700 78,400 76,600 75,200 70,700 70,900
Source: Washington State Employment Security Department.
Non-Agriculture Wage and Salary Workers
Employed in Kennewick-Richland-Pasco MSA (000s) (1)
(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.
Last Nine fiscal Years
Fiscal Year Ended Decmeber 31
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
129
Fiscal Year
Ended
December 31
New
Single
Family
Permits
New
Single
Family
Value
Total
Permits
Total
Value Permits Value Permits Value Permits Value
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
2013 220 50,396 1,705 73,701 364 44,173 44 6,862 2,113 124,736
SOURCE:
1 City of Pasco website Building Permit History.
2 Includes single family and mobile home
TotalCommercialResidental 2 Industrial
Building Permits
Last Ten Fiscal Years
(amounts expressed in thousands)
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
130
Function 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
General government 42 47 47 49 51 52 46 45 45 45
Public safety
Muni Court 13 13 13 14 14 14 15 16 16 16
Police
Officers 55 62 62 64 66 69 67 67 67 71
Civilians 10 11 12 11 11 11 11 12 12 12
Fire
Firefighters and officers 31 34 34 34 34 34 34 33 33 35
Ambulance 15 15 15 15 15 15 16 18 19 19
Physical enviroment
Utilities
Water 17 17 18 18 20 22 22 22 21 20
Sewer 14 14 14 15 17 18 18 18 17 18
Water process reuse 3 3 3 3 3 3 3 2 2 3
Storm water 4 4 4 4 4 4 4 5 5 4
Irrigation 2 2 2 2 2 2 2 2 2 2
Transportation
Highways and streets
Engineering 12 13 15 14 14 13 13 13 14 16
Maintenance 6 7 7 7 7 7 7 7 7 6
Health and human services 2 2 2 2 2 2 2 2 3 3
Economic enviroment 11 12 12 15 14 17 15 15 15 15
Culture and recreation 14 15 15 16 17 16 16 16 16 16
Total 251 271 275 283 291 299 291 293 294 301
Source: Annual Operating Budget
Fiscal Year Ended December 31
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
131
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Function
Public Safety
Police
Violent crime 142 98 160 150 166 217 183 202 178 151
Nonviolent crime 1,712 2,021 1,795 1,817 1,688 1,525 1,475 1,609 1,711 1,628
Calls for service 34,556 45,835 46,095 49,191 54,061 55,672 52,116 49,819 52,027 54,996
Victims per 1000 population 45 47 41 39 35 32 29 30 30 27
Fire & Emergency Medical Service
Number of emergency reponse-FIRE N/A 416 429 428 233 238 215 277 260 279
% of total incidnets-FIRE*10%7%6%6%
Number of emergency reponse-EMS N/A 2,462 2,485 2,586 3,316 3,005 3,016 3,337 3,474 3,394
% of total incidents-EMS*90%79%79%79%
Number of emergency reponse-OTHER*614 662 658
% of total incidents- OTHER*15%15%15%
Community Development
Number of new Single Family units 1,031 1,008 729 518 398 467 530 483 314 204
Number of new Muli Family units 1 0 0 0 0 0 8 1 16 0
Number of new Manufactured units 25 19 15 6 6 9 14 9 21 16
Commercial permits 399 357 377 310 274 351 279 317 382 408
Construction value (millions)44.4 41.1 62.4 81.6 40.0 60.0 38.6 20.1 56.7 51.0
Residential permits 2,075 2,192 1,869 1,576 1,403 1,499 1,908 1,817 1,507 1,705
Construction value (millions)151.3 170.8 139.8 106.2 82.9 102.1 119.2 113.3 85.3 73.7
Physical enviroment
Highway and streets
Street resurfacing (miles)*4.6 3.5
Utilities
Water
Bills processed 144,627 151,515 165,165 177,195 189,061 194,614 202,136 207,685 217,911 226,934
New connections 1,331 1,246 838 734 543 631 666 571 449 328
Water meters replaced 43 104 88 75 78 73 1,842 1,900 2,640 1,431
Source: Various government departments.
Prior information not available*
Fiscal year
Operating Indicators by Function
Last Ten fiscal years
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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Function
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 30 34 34 35 37 43 43 50 52 53
Fire stations 3 3 3 3 3 3 3 3 3 3
Culture and recreation
Parks *40 41 41
Parks acreage *274 280 280
Swimming pools 3 3 3 3 3 3 3 3 3 3
Physical enviroment
Streets
Street (miles)212 225 238 302 392 475 619 781 821 823
Street lights 2,753 2,905 3,074 3,138 3,172 3,222 3,290 3,374 3,449 3,469
Traffic signals **38 42 44 49 50 50
Water
Water mains (miles)259 274 289 292 298 302 306 309 313 314
Services (accum. Total)12,983 14,002 15,021 15,335 15,508 15,748 16,081 16,305 16,660 16,754
Fire hydrants 1,595 1,741 1,887 1,916 1,966 1,997 2,036 2,069 2,106 2,114
Maximum daily capacity (MGD)29 29 29 29 29 29 33 33 30 30
Sewer
Sanitary sewer (miles)185.3 195.4 206.5 209.5 216.2 219.8 224 226 264 265
Maximum daily treatment capacity
(MGD) *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 4.3
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)37 39 40 40 40 40 42 43 45 46
Number of catch basins 2,150 2,407 2,664 2,738 2,801 2,878 3,089 3,176 3,289 3,322
Irrigation
Irrigation mains (miles) *29 46 63 67 68 73 80 84 90 95
Maximum daily capacity (thousand of
gallons) *1,450 8,950 9,950 12,300 16,100 17,100 17,100 17,100 17,100 17,100
Source: Various government departments.
Note: No capital asset indicators are available for the general government function.
* prior years not available
** some years not available
Capital Used by Function
Last Ten Fiscal Years
Fiscal Year Ended December 31
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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2008 2009 2010 2011 2012 2013
Water System Accounts by Class
Single Family Residential 13,549 14,344 14,670 15,204 15,612 15,792
Multi-Family Residential 504 507 453 463 468 470
Commercial 1,058 1,112 1,272 1,296 1,321 1,421
Other 56 426 402 4,047 422 452
Total 15,167 16,389 16,797 21,010 17,823 18,135
Sewer System Accounts by Class
Single Family Residential 11,887 12,148 12,841 13,373 13,746 13,949
Multi-Family Residential 504 482 442 449 454 470
Commercial 921 1,017 935 949 969 987
Total 13,312 13,647 14,218 14,771 15,169 15,406
Stormwater System Customer Accounts 14,667 15,129 15,778 16,329 16,718 17,580
Irrigation System Customer Accounts 3,992 4,284 4,783 5,176 5,435 5,668
Process Water Reuse Facility Customers
Pasco Processing 39%43%38%50%46%48%
Twin City Foods 16%19%32%16%21%17%
Bybee Food 16%18%16%17%15%22%
Reser's Fine Food 29%20%14%17%18%13%
100%100%100%100%100%100%
Source: City of Pasco billing systems.
Percent of Total Annual Billed Revenue
Waterworks Utility Customer Accounts
Last Six Fiscal Years
For the Month of August
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Water rates and monthly charges
Inside city rates listed; outside city 90% surcharge
Consumption per 100 cu feet 0.54$ 0.54$ 0.54$ 0.54$ 0.54$ 0.54$ 0.65$ 0.65$ 0.65$ 0.68$
Single family residential monthly base (in city)
Size of Service
3/4 inch 10.50 10.50 10.50 10.50 10.50 10.50 12.50 12.50 12.50 12.50
1 inch 15.75 15.75 15.75 15.75 15.75 15.75 18.74 18.74 18.74 18.74
Multi-family and commercial monthly base
Size of Service
3/4 inch 14.80 14.80 14.80 14.80 14.80 14.80 17.61 17.61 17.61 17.61
1 inch 21.37 21.37 21.37 21.37 21.37 21.37 25.43 25.43 25.43 25.43
1 1/2 inch 41.69 41.69 41.69 41.69 41.69 41.69 49.61 49.61 49.61 49.61
2 inch 66.88 66.88 66.88 66.88 66.88 66.88 79.59 79.59 79.59 79.59
3 inch 91.34 91.34 91.34 91.34 91.34 91.34 108.69 108.69 108.69 108.69
4 inch 131.60 131.60 131.60 131.60 131.60 131.60 156.60 156.60 156.60 156.60
6 inch 205.43 205.43 205.43 205.43 205.43 205.43 244.46 244.46 244.46 244.46
8 inch 284.68 284.68 284.68 284.68 284.68 284.68 338.77 338.77 338.77 338.77
Irrigation monthly charge
Base per residential unit 24.00 24.00 24.00 24.00 24.00 24.00 24.00 26.00 26.00 26.00
Per Irrigation unit 7.50 7.50 7.50 7.50 7.50 7.50 7.50 8.12 8.12 8.12
Per Irrigated acre 70.00 70.00 70.00 70.00 70.00 70.00 70.00 75.81 75.81 75.81
Sewer rates and monthly charges
Inside city rates listed; outside city 50% surcharge
Residential monthly base <= 4 units 30.59 30.59 30.59 27.53 27.53 27.53 27.53 24.80 24.80 24.80
Residential monthly base > 4 units 24.50 24.50 24.50 22.05 22.05 22.05 22.05 20.00 20.00 20.00
No residential consumption charge
Commercial base rate 40.88 40.88 40.88 36.79 36.79 36.79 36.79 33.35 33.35 33.35
Consumption per 100 cu ft over 1000 cu ft 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.29
Stormwater monthly charge
Residential
Single family residential 1.80 1.80 1.80 1.80 1.80 1.80 1.80 3.00 3.90 3.90
Apartments (per unit)1.80 1.80 1.80 1.80 1.80 1.80 1.80 3.00 1.95 1.95
Multi-family residential (per unit)0.90 0.90 0.90 0.90 0.90 0.90 0.90 1.50 1.95 1.95
Undeveloped parcels - - - - - - - - - -
Vacant buildings 1.80 1.80 1.80 1.80 1.80 1.80 1.80 3.00 3.90 3.90
Industrial/Commercial
Parking for 0-5 vehicles 1.80 1.80 1.80 1.80 1.80 1.80 1.80 3.00 3.90 3.90
Parking for 6-10 vehicles 3.60 3.60 3.60 3.60 3.60 3.60 3.60 6.00 7.80 7.80
Parking for 11-15 vehicles 5.40 5.40 5.40 5.40 5.40 5.40 5.40 9.00 15.60 15.60
Parking for 16 plus vehicles 7.20 7.20 7.20 7.20 7.20 7.20 7.20 12.00 19.50 19.50
Additional charges
Property runoff to City systems ($1.25 min 40.00 40.00 40.00 40.00 40.00 40.00 40.00 66.70 86.71 86.71
State Highway right-of-way - acre 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ 16.68$ 21.71$ 21.71$
Source: City of Pasco Municipal Code Title 3
Waterworks Selected Utility Rates
Last Ten Fiscal Years
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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“To accomplish great things, we must dream as well as act.”
Anatole France
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
136
STATE REQUIRED SCHEDULES
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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SCHEDULE 9 - LONG TERM DEBT Per Prior Per Loan Per Loan Per Loan
December 31, 2013 Schedule 9 Tabs Tabs Tabs
Maturity/
MCAG NO. 0292 Payment Beginning Ending
ID No.Description Due Date Balance Additions Reductions Balance
Councilmanic GO Bonds 251.16 2011 LTGO Refund 2001 LTGO 12/1/2020 3,645,000 (410,000) 3,235,000
Voted - GO Bonds 251.14 1999 UTGO Library & Fire Station 12/1/2019 700,000 (100,000) 600,000
Voted - GO Bonds 251.12 2002 ULTGO Refund 2001 LTGO 2/1/2013 365,000 (365,000) -
Other Debt 263.81 1998 TRAC Loan 12/1/2014 192,414 (93,104) 99,310
Other Debt 263.81 2002 State LOCAL - Animal Control Facililty Land 12/1/2016 101,569 (18,701) 82,868
Other Debt 263.81 2006 Port Airport Fire Building 7/12/2016 48,597 (12,870) 35,727
Other Debt 263.81 2009 State LOCAL - Police Vehicle Computers 6/1/2013 26,474 (26,474) -
Compensated Absences 259.11 Compensated Absences - Gov't 1,927,105 1,499,078 (1,528,728) 1,897,455
OPEB Related Liabilities 263.93 OPEB -Gov't 1,695,149 800,733 (514,297) 1,981,585
LID w/ Commitment 253.12 2010 LID 145 - A Street Improvements 11/15/2020 320,000 (160,000) 160,000
LID w/ Commitment 253.12 2011 LID 146 & Pension Fund Note 5/1/2021 75,014 (8,424) 66,590
Revenue Bonds 252.11 2002 Rev Bond Water 46.10%12/1/2022 1,608,890 (755,690) 853,200
Revenue Bonds 252.11 2002 Rev Bond Sewer 38.50%12/1/2022 1,343,650 (616,850) 726,800
Revenue Bonds 253.11 2002 Rev Bond Irrigation 15.4%12/1/2022 537,460 (537,460) -
Revenue Bonds 252.11 2005 Rev Bond Water/Sewer 9/1/2025 3,200,000 (190,000) 3,010,000
Revenue Bonds 252.11 2009 Revenue Bond Water Plant 11/1/2029 8,170,000 (350,000) 7,820,000
Revenue Bonds 252.11 2010A 50% Water New 6/1/2029 2,900,000 (122,500) 2,777,500
Revenue Bonds 252.11 2010A 50% Sewer New 6/1/2029 2,900,000 (122,500) 2,777,500
Revenue Bonds 252.11 2010A Ref 98B Water 20.48%6/1/2029 294,912 (145,408) 149,504
Revenue Bonds 252.11 2010A Ref 98B Sewer .88%6/1/2029 12,672 (6,248) 6,424
Revenue Bonds 252.11 2010A Ref 1998B PWRF 78.64%6/1/2029 1,132,416 (558,344) 574,072
Revenue Bonds 252.11 2010T Refund 98 A PWRF 6/1/2018 975,000 (145,000) 830,000
Revenue Bonds 252.11 2013A Sewer Bond 12/1/2028 2,520,000 - 2,520,000
Revenue Bonds 252.11 2013T PWRF Bond 12/1/2028 7,235,000 - 7,235,000
Notes & Loans 263.82 Sewer Pollution Control Facility PWTF 95-025 7/1/2015 129,034 (43,011) 86,023
Notes & Loans 263.82 West Pasco Water System PWTF 95-026 7/1/2015 322,126 (107,375) 214,751
Notes & Loans 263.82 Riverview Trunk/SE Sewer PW00-043 7/1/2020 889,123 (111,140) 777,983
Notes & Loans 263.82 Sewer Treatment Plant Phase 1&2 SRF Loan 7/31/2020 10,615,340 (1,360,247) 9,255,093
LID w/ Commitment 253.12 2007 ULID 141 & 142 - Sewer 9/1/2022 465,000 (50,000) 415,000
LID w/ Commitment 253.12 2009 ULID 143 - Sewer 11/1/2029 720,000 (60,000) 660,000
Compensated Absences 259.11 Compensated Absences -Business 445,322 442,132 (384,290) 503,164
45,757,267 Total 49,350,549
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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SCHEDULE 16- SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2013
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
Special Programs for the Aging_Title III, Part B_93.044 2013 Aging & Long Term Care - Footcare 22,163$ 22,163$
Total US Dept of Health & Human Services 22,163 - 22,163
US Department of Homeland Security
Pass through Franklin County Emergency Management
State Domestic Preparedness Equipment Support 97.004 Mobile Command vehicle 76,753 76,753
Homeland Security Grant Program 97.067 Fire-Technical Rescue Items 5,983 5,983
Homeland Security Grant Program 97.067 Mobile Command vehicle 83,122 83,122
Total US Department of Homeland Security 165,858 - 165,858
US Department of Housing & Urban Development
Community Development Block Grants/Entitlement 14.218 B-12-MC-53-009 CDBG 398,874 398,874
Community Development Block Grants/Entitlement 14.218 B-13-MC-53-009 CDBG 209,203 209,203
Pass Through City of Richland
Home Investment Partnerships Program 14.239 HOME 87,308 87,308
Pass Through Washington Department of Commerce
Community Development Block Grants/State's 14.228 08-F6401-014 NSP 67,672 67,672
Total US Department of Housing & Urban Development 154,980 608,077 763,057
US Department of Justice
Equitable Sharing Program 16.922 12-FBI-002691 2,620 2,620
Pass Through from City of Kennewick
Project Safe Neighborhoods 16.609 2012-WF-AX-0047 PSN 2,500 2,500
Pass Through from Department of Commerce
Violence Against Women Formula Grants 16.588 2012-WF-AX-0047-STOP 35,236 35,236
Pass Through from METRO Drug Task Force
Edward Byrne Memorial Justice Assistance 16.738 M12-34021-012 METRO 54,674 54,674
Edward Byrne Memorial Justice Assistance 16.738 M13-31440-012 METRO 53,875 53,875
Total US Dept of Justice 146,285 2,620 148,905
US Department of Transportation -National Highway Traffic Safety Administration
Pass through Washington Association of Sherriff & Police Commission
State and Community Highway Safety 20.600 WASPC TS 940 940
Pass through Washington Traffic Safety Commission
State and Community Highway Safety 20.600 CP12-03 ZERO 6,311 6,311
State and Community Highway Safety 20.600 14ST-02 ZERO 5,448 5,448
State and Community Highway Safety 20.600 13-14 Impaired Driving 1,048 1,048
Alcohol Impaired Driving Countermeasures Incentive 20.601 12-13 Impaired Driving 2,929 2,929
Occupant Protection Incentive Grants 20.602 12-13 CIOT 693 693
Total US Dept of Transportation NHTSA 17,369 - 17,369
US Department of Transportation/ Federal Highway Administration
Pass through Washington Department of Transportation
Highway Planning and Construction 20.205 HISP-3524 (006) LA-8157 Ct st ADA 28,043 28,043
Highway Planning and Construction 20.205 STPE-3553 (003) LA-7682 4th ave N.484,624 484,624
Highway Planning and Construction 20.205 STPUL-3515 (007) LA-8059 Rd 68 II 50,427 50,427
Highway Planning and Construction 20.205 STPUL-3522 (001) LA-8117 Argen 54,806 54,806
Highway Planning and Construction 20.205 STPUL-3515 (006) LA-8060 Rd 68 signals 16,867 16,867
Highway Planning and Construction 20.205 STPUS-0397 (008) LA-7866 Oregon 199,143 199,143
Highway Planning and Construction 20.205 STPUS-9911 (007) LA-7782 STP 895,539 895,539
Highway Planning and Construction 20.205 STPUL-9911 (008) LA-7975 Controllers 23,682 23,682
Total US Dept. of Transportation Federal Highway Administration 1,753,131 - 1,753,131
TOTAL FEDERAL AWARDS EXPENDED:2,259,786$ 610,697$ 2,870,483$
MCAG NO. 0292
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
139
CITY OF PASCO
SCHEDULE 16- SCHEDULE OF STATE AND LOCAL FINANCIAL ASSISTANCE
For the Year Ended December 31, 2013
Grantor/Other
Pass-Through Grantor Identification STATE
Program Title Number AWARDS
Washington State Departement of Ecology
USBR Irrigation Connection C1200160 1,371,958
Columbia Water Supply Project C1200160 185,368
Shoreline Master Program SMP (DOE)G1400XXX 926
Stormwater Capacity Grant G1400301 41,848
Total Department of Ecology 1,600,100
Washington State Traffic Safety Commission
School Zone Gtrant (WTSC)6,513
2013-2014 Target ZERO Task Force 14ST-02 15,972
2011-2013 Target ZERO Task Force CP12-03 15,133
Total Traffic Safety Commission 37,618
Washington State Patrol
2011-2012 Basic Fire Fighter Training Program C120274GSC 1,536
Total Washington State Patrol 1,536
Utilities and Transportation Commission
1st & A Street RR Crossing Improvement TR-121780 25,000
Total Utilities and Transportation Commission 25,000
Washington Auto Theft Prevention
Pass through Washington association of Sheriffs and Police Chiefs
WA Autotheft Prevention Authority 11-13-GG-WATPA-009 1,261
Total Washington State Patrol 1,261
Washington Department of Commerce
Pass through Metro Task Force
2012-2013 Edward Byrne Formula (Metro)M12-34021-012 9,648
2013-2014 Edward Byrne Formula (Metro)M13-31440-012 16,533
Total Washington Department of Commerce 26,181
Department of Health & Human Services
2013 Prehospital Participation Grant 3030-GLA-70.168 1,208
1,208
TOTAL STATE AND LOCAL ASSISTANCE:1,692,904
MCAG NO. 0292
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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 2013 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 2013, property was sold, which
generated $101,790 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.
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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SCHEDULE 19 - LABOR RELATIONS CONSULTANTS
For the Year Ended December 31, 2013
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 Services:Various throughout the year.
Services Provided:Union Bargaining Assistance - Wesley
Human Resources Issues - Kennar
MCAG NO. 0292
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SCHEDULE 21 - LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31, 2013
Program Manager:Lynne Jackson
Address:525 N 3rd Ave Pasco Wa 99301
Phone:509-545-3473
Email:jacksonl@pasco-wa.gov
Yes Does the entity self-insure for any class of risk, including liability, property, health and
welfare, unemployment compensation, workers' compensation? (yes or no)
Which class of risk does the entity 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 program of a city.
If so, list the entity or entities:____________________________________________
No Does the entity self-insure as a joint program? (yes or no)
If Yes, list the other member(s) ____________________________________________
No Does the entity administer its own claims? (yes or no)
Yes Does the entity contract with a third party administrator for claims administration? (yes or no)
Yes Did the entity receive a claims audit in the last three years, regardless of who administered
the claims? (yes or no)
Yes Were the program's revenues sufficient to cover the program's expenses (yes or no)
No Did the program use an acturary to determine its liabilities? (yes or no)
MCAG NO. 0292
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
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SCHEDULE 21 - LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31, 2013
Third Party Administrator Benefit Management, Inc.
Contact Kelli Gerstenkorn
Address:PO Box 1090, Great Bend, KS 67530
Phone:800-290-1368 x2076
Email:kgerstenkorn@bmikansas.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
received during the paid during the claims paid
period period during the period
Medical/Rx 25,341 23,222 $4,224,915.81
Dental 2,148 1,561 $350,449.27
Description of Risk Type
MCAG NO. 0292
City of Pasco, Washington 2013 Comprehensive Annual Financial Report
144
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 Jeffus
Accounting Lead
Karen Conn
Staff Accountant
Melissa Gonzalez
Department Assistant II