HomeMy WebLinkAbout2014 ACFR
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF PASCO, WASHINGTON
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2014
Prepared by:
Finance Division
Administrative and Community Services Department
Richard G. Terway – Director
Eva K. Lindgren, CPA, CGMA - Deputy Director
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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.. 30
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balance of
Governmental Funds to the Statement of Net Activities.……..…………….…………..…… 31
Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual-
General Fund…………………………………………………………………………………. 32
Statement of Net Position - Proprietary Fund…………………….…………………………….. 33
Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds………….. 34
Statement of Cash Flows – Proprietary Fund ………………………………………………….. 35
Statement of Net Position – Fiduciary Funds…………………………………………………… 36
Statement of Changes in Net Position – Fiduciary Funds.………………………………..……… 37
Notes to the Financial Statements….…………………….…………………………….……………. 38
Required Supplementary Information
Firemen’s Pension Fund/Firemen’s OPEB Fund………………………………………………. 84
Other LEOFF1 OPEB………………………………………………………………………… 85
Combining and Individual Fund Statements
Combining Balance Sheet – Nonmajor Other Governmental Funds ………………………….. 88
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Other Governmental Funds ……………………………………………………….. 89
Combining Balance Sheet – Nonmajor Special Revenue Funds …………………………….. 90
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Special Revenue Funds……………………………………………………………. 94
Combining Balance Sheet – Nonmajor Debt Service Funds…….…………………………….. 98
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Debt Service Funds…………………………………………………………….... 99
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TABLE OF CONTENTS (continued)
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual
Major Construction Fund.…………………….……………………………………………… 100
Schedule of Revenues and Expenditures–Budget to Actual–Nonmajor Other Governmental
Funds ……………………………………………………………………………………….. 101
Combining Statement of Net Position – Nonmajor Internal Service Funds…………………… 103
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Nonmajor Internal Service Funds…..………..……………………………………………… 104
Combining Statement of Cash Flows – Nonmajor Internal Service Funds................................ 105
Combining Statement of Net Position– Fiduciary Funds……………………………..……. 107
Combining Statement of Changes in Net Position – Fiduciary Funds…...…………..……….. 109
Combining Statement of Changes in Assets and Liabilities – Agency Funds…………………. 110
STATISTICAL SECTION
Financial Trends
Net Position by Component……………………............................................................................ 114
Changes in Net Position……….................................................................................................... 115
Governmental Activities Tax Revenues by Source…………………..………..………………… 117
Fund Balances of Governmental Funds………………….............................................................. 118
Changes in Fund Balances of Governmental Funds…………………........................................... 119
Revenue Capacity
Assessed Value of Taxable Property .......................................................................................... 120
Excise Taxes by Type / Property Tax Rates ................................................................................ 121
Taxable Retail Sales / Principal Property Taxpayers……………………................................... 122
Principal B&O Taxpayers ………………………………………………..............……………. 123
Top Ten Industries that Generate Sales Tax…………………………………………………….. 124
Property Tax Levies and Collections…………………................................................................. 125
Debt Capacity
Ratios of Outstanding Debt by Type/Ratio of General Bonded Debt Outstanding....................... 126
Legal Debt Margin……………………………............................................................................. 127
Direct and Overlapping GovernmentalActivities Debt………………………………………...... 128
Waterworks Utility Debt Service Coverage……........................................................................... 129
Demographic and Economic Information
Demographic and Economic Statistics.......................................................................................... 130
Principal Employers…………………………………………...................................................... 131
Non Agriculture Wage and Salary Workers…………………………………………………….. 132
Building Permits………………………………………………………………………………… 133
Operating Information
Full Time Equivalent City Government Employees by Function…………………………........ 134
Operating Indicators by Function………………………………………………………………. 135
Capital used by Function……………………………………………………………………….. 136
Waterworks Utility Customers …………………………………..…..…………………………. 137
Waterworks Utility Rates………………………………………………….……………………. 138
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STATE REQUIRED SCHEDULES
Schedule 9 – Schedule of Long-Term Liabilities……………………………….………..……… 141
Notes to Schedule of Long-Term Liabilities…..…………………………………………………… 142
Schedule 15 – Schedule of State Financial Assistance…………………………………..………….. 142
Schedule 16 – Schedule of Expenditures of Federal Awards……………………………………….. 143
Notes to Schedule of Expenditures of Federal Awards……………………………..…………. ….. 144
Schedule 19 - Labor Relations Consultants………………………………………………………… 146
Schedule 21 – Local Government Risk Assumption………………………………………………. 147
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2014 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
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Elected Officials Term Expires
Mayor
Matt Watkins 12/31/2015
Council Members
Rebecca M. Francik 12/31/2015
Michael Garrison 12/31/2017
Robert Hoffman 12/31/2017
Tom Larsen 12/31/2017
Saul Martinez 12/31/2017
Al Yenney 12/31/2015
Administrative Officials
City Manager David Zabell
Deputy City Manager Stanley R. Strebel
Public Works Director Ahmad Qayoumi
Administrative & Community Services Director Richard G. Terway
Community Development Director Rick White
Fire Chief Robert W. Gear
Police Chief Robert W. Metzger
Municipal Court Judge David L. Petersen
Management Team
Personnel Manager Colleen Chapin
Finance Manager-Interim Eva Lindgren
Information Services Manager Jesse Rice
Recreation Manager Brent Kubalek
Facilities Manager Dan Dotta
Inspection Services Manager Troy Hendren
Court Administrator Dorothy R. French
Captain - ISD James Raymond
Captain - Patrol Ken Roske
City Engineer vacant
Plant Division Manager Reuel Klempel
Field Division Manager Jesse U. Greenough
Construction Manager Kent McCue
Directory of City Officials and Managers
As of December 31, 2014
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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 fis cal year ended
December 31, 2014. 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 $367,922. Of this amount, $35,224 may be used to meet the government’s ongoing
obligations to the citizens and creditors.
The City of Pasco’s total net position improved by $4,754, of which $2,253 is attributable to
prior period adjustments. Approximately 72% of that increase is due to increases in business-
type activities and 28% is due to governmental-type activities.
As of the close of the current fiscal year, the City of Pasco’s governmental funds reported
combined ending fund balances of $26,100, an increase of $4,273 in comparison with the
prior year. Of the $4,273 increase, $1,285 is attributable to prior period adjustments.
At the end of the current fiscal year, the unrestricted, unassigned fund balance for the City’s
General Fund was $7,978 which also represents 21% of total General Fund expenditures and
transfers out. There was an overall $3,138 increase in the General Fund balance due to a prior
period adjustment of $1,055; an excess of revenues of expenditures of $4,421; transfers in
totaling $138 and transfers out totaling $2,476. Of the transfers out, $609 was for one-time
expenditures; and $604 was primarily for capital projects. $1,263 was for subsidies. $400 of
the subsidies was for a one-time subsidy transfer to the Stadium/Convention Center to
permanently address a long-standing negative fund balance issue.
The City of Pasco did not issue any new debt in 2014. Its total long-term debt decreased by
$4,670 as a result of debt service payments.
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
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
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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.
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 2014, 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 non-major
governmental funds is provided in the form of Combining Statements elsewhere in this report.
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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. An Internal service fund is an accounting device used to accumulate and allocate costs
internally to the City of Pasco’s various functions. The City of Pasco uses internal service funds to
account for its equipment maintenance and replacement, central stores and medical/dental insurance.
As the central stores, medical/dental insurance and certain equipment maintenance and replacement
services predominately benefit governmental rather than business-type functions, they have been
included with governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The enterprise fund financial statements provide separate information for the
water/sewer fund. Data from the other two internal service funds (equipment maintenance and
equipment replacement of utility equipment) are combined into a single, aggregated presentation in
the basic proprietary fund financial statements starting on page 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 36 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 38.
Government-wide Overall 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 $367,922 at the close of the
most recent fiscal year. The largest portion of the City of Pasco’s net position (86.5%) 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. 3.9% of the City of
Pasco’s net position represents resources that are subject to external restrictions on how they may be
used. The remaining $35,224 of unrestricted net position (9.6%) may be used to meet the
government’s ongoing obligations to citizens and creditors.
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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 for 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 City’s net position increased by $4,754, during the current fiscal year. $2,253, almost half of
the increase, is the result of prior period adjustments. Without prior period adjustments, the
governmental funds would have experienced a decrease of $226 - the result of expenses exceeding
revenues by a slight amount. While fees for services and tax revenues increased, so did costs. For
the business-type funds, the increase in charges for services – primarily related to Water rate
increases – outpaced increased costs although not to the same extent as in 2013.
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Governmental Activities. Governmental activities increased the City of Pasco’s net position by
$1,329 or 28% of the total change in net position. The entire amount of the increase was attributable
to prior period adjustments totaling $1,555, without which governmental activities would have
reduced the City’s net position by of $226.
The City has continued to see increases in taxes. Total tax revenues increased by $2,014 (7%). Sales
taxes continued to grow due to new construction and the continuing improved economic climate. In
2014, there was a $1,223 (11%) increase in sales taxes over the previous year. At the fund level,
property tax revenues displayed continued growth due to increases in new construction, assessed
valuation and the effect of the 2012 annexation. However, due to a prior period adjustment not being
made for property taxes, at the City-wide level, property taxes decreased by $88 (1%). Although
construction continued at the slower pace exhibited in 2013, permitting fees increased by $99 (11%).
The city was able to maintain the status quo on the number of approved personnel positions.
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GOVERNMENTAL ACTIVITES – REVENUES BY SOURCE
GOVERNMENTAL ACTIVITIES – EXPENSES AND PROGRAM REVENUES
Business-Type Activities. 72% of the increase in the City of Pasco’s net position is related to
business-type activities. The total increase in net position for business-type activities was $3,424, of
which $698 was due to prior period adjustments. Additionally, charges for services increased by
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$2,044 (11%). Effective, February 1, 2014, Water base rates increased by 30% (from $12.50 to
$16.25 for residential) and Stormwater rates increased by approximately 13% (from $3.90 to $4.40
for residential).
UTILITY ACTIVITIES – EXPENSES AND PROGRAM REVENUES COMPARISON
Financial Analysis of the City’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.
As of the end of the 2014, the City of Pasco governmental funds reported combined ending fund
balances of $26,100 (an increase of $4,273 over 2013). Approximately 29% of this total amount,
$7,536 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 2014, unassigned
fund balance of the general fund was $7,978. As a measure of the general fund’s liquidity, it may be
useful to compare unrestricted, unassigned fund balance to total expenditures. This represents 23%
of total expenditures.
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The fund balance of the City of Pasco’s General Fund increased by $3,138 during 2014, which is 8%
of current year revenues. Overall revenues increased by $3,407 (9%) and total expenditures increased
by $1,160 (3%). General fund tax revenues increased by $2,179 (8%). Property taxes increased $427
(6%) due to new construction and steady valuations, and sales taxes increased by $1,082 (10%) with
the continued steady economic recovery. Brokered natural gas use taxes and gas B&O taxes
increased by a total of $223 (31%) from 2013. New residences, as well as industrial uses, are driving
the increases. Electric B&O taxes increased by $147 (4%), due to an increase in electric rates. Water
B&O taxes increased by $81 (13%) due to the rate increase, which went into effect February 1, 2014.
The Telephone tax decline was reversed by a modest increase of $58 (4%), even though customers
have been moving towards the use of internet and cell services, which are not subject to the telephone
tax. Inter-governmental revenues from state liquor taxes increased by $27 (31%) as the state is
starting to incrementally share more of these taxes with local governments. However, these levels
fall far short the amounts received in 2011 and earlier. Charges for services increased by $946 (20%)
from the prior year; mostly from services rendered to other funds and other agencies.
The City was able to increase the number of approved personnel positions, by nine positions.
However, because a number of positions were left unfilled in 2014, the City was forced to contract
for temporary and professional services in certain areas. Contracts with Police and Fire were not
settled until 2015. So, retroactive pay did not factor into the General Fund activity in 2014. The
General Fund revenues of $39,315 exceeded expenditures of $34,894 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 2014 was $16,991. 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 2014 the utility is well-positioned as it has current assets of $18,436 available to meet its
current liability obligations of $5,140, resulting in a working capital ratio of 3.59. The utility showed
a loss before contributions and transfers of $1,040. This was more than offset by $3,344 in capital
contributions. The City continues to invest in new infrastructure due to the growth of its population,
as well as due to the need to address aging infrastructure issues. The City has a meter and service
replacement program with the goal of replacing its meters on an average of once every ten years.
Local improvement districts (LIDs) are used by the utility to supplement the rate payers’ participation
in capital construction.
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. There were increases to the original budget of $2,354 and $904 in the
expenditure and transfer out appropriations, respectively. The appropriation increases were due to a
number of factors. $890 in expenditure appropriation increases were due to increases in wages
($510), overtime ($191), and benefits ($189). Overtime increases were primarily for public safety:
both Police and Fire. Traditionally, overtime has been under-budgeted; an additional factor was that
several employees out on disability forced existing employees to put in overtime to cover shifts.
Additionally, cash-outs of long-time employees, costs associated with new employees, and the fact
that the City experienced challenges with its new position budgeting software, which resulted in
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under-budgeting of wages and benefits. Other contributing factors to the increase in expenditure
appropriations include: a $170 increase for the City’s prisoner custody contract with the County; a
$182 increase for legal services, which has traditionally been under-budgeted; and $90 for temporary
staffing and professional services to cover vacancies.
Two of the most significant transfer out appropriation increases were due to the following: a $300
local match for a LED light project and $440 to cover the Stadium/Convention Center Fund’s
negative fund balance.
Actual revenues were 114% of the original revenue budget and 106% 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 $4,421.
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, 2014 amounts to $318,337 (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 decrease of $4,246 for governmental
activities and a decrease of $745 for business-type activities. $4,302 and $3,334 in capital
contributions were made to governmental and business-type activities, respectively, in 2014.
Major capital asset activity during the current fiscal year included the following:
Spending on governmental activities included in the Capital Improvement Plan during 2014
totaled $5,561. The vast majority of the projects were transportation-related. Of the $5,561
expended, $3,523 (63%) was attributable to transportation projects. Of these, the most
significant were Road 68 Improvements ($1,232); Lewis Street Demolition ($600); Lewis
Street Overpass ($238); and the grant-funded Court Street ADA Sidewalk Upgrade ($590).
The Court House construction wound down in 2014 with $550 in expenditures for the City’s
portion of the Franklin County project. Design work was started on the new Police
Community Services Building project which broke ground in the spring of 2015 ($175).
Spending on business-type activities included in the Capital Improvement Plan during 2014
totaled $4,171. Water projects totaled $1,041. Of this amount, $716 was expended on line
extensions. Sewer projects totaled $910. Of this amount, $227 was expended on the Waste
Water Treatment Plant – Primary Clarifier No. 3; $475 was expended on sewer re-lining
projects. The Process Water Reuse Facility projects totaled $901. Of this amount, $693 was
expended on the BOD Winter Storage Pond (30 MG). Irrigation projects totaled $681. Of
this amount, $640 was expended on the USBR Irrigation Connection project, which is
primarily grant-funded.
Additional information on the City of Pasco’s capital assets can be found in note 3.C. starting on
page 54 of this report.
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Long-term Debt. At the end of 2014, the City of Pasco had total bonded debt outstanding of $31,553.
Of this amount $3,315 comprised debt backed by the full faith and credit of the government. $27,065
of the City of Pasco bonded debt represents bonds secured primarily by specified revenue resources
(i.e. revenue bonds). The city also has $1,173 in special assessment bonds.
Additional information on the City of Pasco’s long term liabilities can be found in note 3.F. starting
on page 57 of this report.
Economic Factors and Next Year’s Budgets and Rates (amounts not in thousands)
In 2014, the Pasco economy was stable and continued to grow. The city issued a total of 2,111
building permits representing approximately $164 million in construction value. Of the total permits,
219 were for new single-family residences which equates to $54 million in construction value. The
average value of a new home in Pasco was approximately $246,000, in 2014. This stable economy
was reflected in Standard & Poor’s rating the 2013 utility bond issue as AA-/Stable and the 2015
General Obligation 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; paid for the replacement of the city’s Municipal Court building; and funded the
construction of the city’s new Police Community Services Building, which broke ground in the
spring of 2015.
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In late in 2012, the city annexed a part of Franklin County. 2014 was the first year the city received
the additional property taxes from the annexation. The annexed area was in a part of the county
already surrounded by the city. In the spring of 2015, the city annexed the Road 80 area. This
annexation covers 688 acres and represents an addition of property assessed at $118,000,000.
In 2014, the Pasco School District completed Franklin STEM (Science, Technology, Engineering,
and Math) Elementary School, at a cost of $9,500,000. This year, construction has been completed
on three schools: Marie Curie STEM Elementary School and McClintock STEM Elementary School,
both at a cost of $20,000,000. Additionally, Delta High School, a STEM school serving Pasco,
Kennewick and Richland, was constructed in Pasco, at a cost of $7,500,000. The heavy investment
in school infrastructure is indicative of the growth Pasco has sustained and looks to continue, as well
as the area’s commitment to providing a well-educated and technologically savvy workforce capable
of meeting the future needs of regional, national, as well as international enterprises.
Overall, operating revenue to the General Fund is expected to grow by $2 million, compared to the
2014 budget. Increases are expected from sales and use taxes, B&O taxes, shared state revenues, as
well as property taxes. Sales tax is the largest single-source of General Fund revenue and, although
it is a volatile revenues stream, expectations are of continued growth. Property tax is estimated to
increase primarily due to new investments in the community and the continued impact of
annexations. For the past decade, the city has opted to “bank” the levy capacity rather than increase
property taxes by the maximum legal limit. In a departure, the City Council approved taking the 2%
increase to which the City is entitled with the passage of the City’s levy ordinances, for collection in
2015. The 2% increase alone applied to General Fund 2014 property taxes will result in $140
increase.
In 2013 the City reviewed the costs of providing ambulance and fire services. Currently, that is being
revisited. With an additional annexation, the fire and ambulance service requirements are being put
under additional pressure. Currently, an external ambulance rate study is underway to analyze the
needs of the City and to evaluate funding mechanisms. With new legislation in place, in 2016, the
City should be able to start collecting Medicaid transports at the higher Medicare rates, which will
mitigate some of the additional staffing needs the City is facing in order to ensure its fire ratings.
The only fund larger than the General Fund is the Water/Sewer Utility Fund. The Water/Sewer Utility
Fund has grown rapidly over the past few years as it provides services to the thousands of new homes
built over the past decade. Every year the utility updates its six year rate plan. Utility rates are
generally increased every other year. Rates increased in 2014 and 2015 for Water and Storm water.
An external rate study is currently being performed. With the approval of the City Council the
recommendations will be reflected in the 2016 budget.
Requests for Information
This financial report is designed to provide a general overview of the City of Pasco’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Finance Manager, PO Box 293, Pasco, WA 99301.
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
24
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City of Pasco, Washington 2014 Comprehensive Annual Financial Report
25
BASIC FINANCIAL STATEMENTS
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
26
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash 4,728,253$ 1,918,250$ 6,646,503$
Restricted cash 285,605 285,605
Investments 24,425,546 6,425,411 30,850,957
Restricted investments 10,555,250 10,555,250
Receivables (net of allowances):
Taxes 3,757,690 3,757,690
Customers 1,778,894 883,214 2,662,108
Grants 896,051 81,943 977,994
Special assessments 299,749 299,749
Prepaid Items 140,655 - 140,655
Due from other funds 282,541 282,541
Due from other governments 100,000 100,000
Inventories - 293,801 293,801
Total current assets 36,109,630 20,743,223 56,852,853
Noncurrent assets:
Special assessments & loans 820,435 - 820,435
Joint Ventures 59,797 59,797
Capital assets not being depreciated:-
Land 14,671,115 2,520,925 17,192,040
Construction work in progress 12,668,345 5,738,643 18,406,988
Capital assets net of accumulated depreciation:-
Buildings and structures 22,299,317 35,963,444 58,262,761
Other improvements 3,484,617 3,484,617
Machinery and equipment 5,882,679 8,295,985 14,178,664
Infrastructure 130,022,819 117,088,203 247,111,022
Total noncurrent assets 189,909,124 169,607,200 359,516,324
Total assets 226,018,754 190,350,423 416,369,177
LIABILITIES
Current liabilities:
Accounts payable 1,805,794 498,027 2,303,821
IBNR payable from restricted assets 449,291 449,291
Deposits payable from restricted assets 124,617 447,169 571,786
Accrued interest payable from restricted assets - 275,099 275,099
Compensated absences - current 1,056,717 162,830 1,219,547
Due to other funds 282,541 282,541
Loans due to other governments - current 43,210 1,719,487 1,762,697
Bonds - current 538,019 2,045,000 2,583,019
Total current liabilities 4,300,189 5,147,612 9,447,801
Noncurrent liabilities:
Compensated absences 452,879 69,784 522,663
Net OPEB obligation 2,523,460 2,523,460
Loans due to other governments 38,076 6,944,624 6,982,700
Bonds 2,985,301 25,985,000 28,970,301
Total noncurrent liabilities 5,999,716 32,999,408 38,999,124
Total liabilities 10,299,905 38,147,020 48,446,925
NET POSITION
Net investment in capital assets 185,424,286 137,088,384 322,512,670
Restricted for:
Cemetery (nonexpendable)454,553 454,553
Prepaid items 140,655 140,655
Streets and boulevards 7,150,098 7,150,098
Litter and housing abatement 369,365 369,365
Park development 1,994,392 1,994,392
Capital improvement 3,732,517 3,732,517
Economic development 48,951 48,951
Geneneral obligation debt 349,077 349,077
Special assessment debt 64,366 64,366
Restricted for Utilities 10,840,855 10,840,855
Unrestricted 15,933,913 4,274,164 20,208,077
Total Net Position 215,718,849$ 152,203,403$ 367,922,252$
- - -
The notes to the financial statements are an integral part of this statement.
STATEMENT OF NET POSITION
December 31, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
27
Charges for Operating Capital
Services, Fines &Grants and Grants and Governmental Business-Type
Functional Programs Expenses Licenses Contributions Contributions Activities Activities Total
Primary Government:
Governmental activities:
General government 8,092,395$ 5,082,745$ -$ -$ (3,009,650)$ -$ (3,009,650)$
Public safety 21,624,372 5,143,614 275,689 - (16,205,069) - (16,205,069)
Transportation 16,727,684 4,203,474 904,444 4,301,797 (7,317,969) - (7,317,969)
Natural & economic environment 4,709,403 3,171,501 503,664 - (1,034,238) - (1,034,238)
Culture and recreation 7,941,126 2,334,200 18,492 - (5,588,434) - (5,588,434)
Interest on long term debt 210,091 (210,091) - (210,091)
Total governmental activities 59,305,071 19,935,534 1,702,289 4,301,797 (33,365,451) - (33,365,451)
Business-type activities:
Water 8,238,027 8,674,221 - 921,834 1,358,028 1,358,028
Sewer 7,901,687 6,615,018 - 1,513,912 227,243 227,243
Process Water Reuse 1,847,700 2,183,229 - - 335,529 335,529
Storm Water 1,288,633 1,277,310 22,818 136,266 147,761 147,761
Irrigation 1,546,399 1,251,839 - 772,397 477,837 477,837
Total business-type activities 20,822,446 20,001,617 22,818 3,344,409 - 2,546,398 2,546,398
Total primary government 80,127,517$ 39,937,151$ 1,725,107$ 7,646,206$ (33,365,451) 2,546,398 (30,819,053)
General Revenues:
Taxes:
Property taxes 7,068,736 7,068,736
Sales taxes 12,695,138 12,695,138
B&O taxes 9,591,628 9,591,628
Excise taxes 2,290,347 2,290,347
Intergovermental 1,580,769 1,580,769
Investment income and miscellaneous 62,878 30,190 93,068
Transfers (149,820) 149,820 -
Total general revenues and transfers 33,139,676 180,010 33,319,686
Change in net position (225,775) 2,726,408 2,500,633
Net position - beginning 214,389,810 148,778,929 363,168,739
Prior period adjustments 1,554,814 698,066 2,252,880
Net position - ending 215,718,849$ 152,203,403$ 367,922,252$
Program Revenues
Statement of Activities
For the Year Ended December 31, 2014
Net Revenue (Expenses) and Changes in Net Position
Primary Government
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
28
Other
General Construction Governmental Total
ASSETS
Cash 1,278,998$ -$ 3,012,221$ 4,291,219$
Investments 4,799,720 15,140,800 19,940,520
Prepaid 135,655 5,000 140,655
Receivables (net of allowances):
Taxes 3,254,702 502,988 3,757,690
Customers 1,237,153 541,741 1,778,894
Interfund loans 239,118 887,361 1,126,479
Grants 55,428 690,568 150,055 896,051
Special assessments & loans 820,435 820,435
Due from other funds 282,541 282,541
Due from other governments 100,000 100,000
Total assets 11,283,315 690,568 21,160,601 33,134,484
LIABILITIES
Accounts payable 540,399 310,814 906,894 1,758,107
Interfund loans payable 2,651,046 2,651,046
Due to other funds 282,541 282,541
Deposits payable from restricted assets 113,717 10,900 124,617
Total liabilities 654,116 593,355 3,568,840 4,816,311
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,246,038 63,852 908,170 2,218,060
FUND BALANCES
Nonspendable
Cemetery permanent fund 454,553 454,553
Prepaid items 135,655 5,000 140,655
Restricted
Law enforcement 56,676 56,676
Street and boulevard 7,150,098 7,150,098
Litter & housing abatement 369,365 369,365
Park development 1,994,392 1,994,392
Capital improvements 3,732,517 3,732,517
Economic development 48,951 48,951
Geneneral obligation debt 349,077 349,077
Special assessment debt 64,366 64,366
Committed
Landfill claims 406,448 406,448
Special revenue funds 2,030,935 2,030,935
Construction projects 33,361 - 33,361
Debt guarantee 925,961 925,961
Assigned
Subsequent year's budget appropriation of fund 806,563 806,563
balance
Unassigned 7,977,819 (441,624) 7,536,195
Total fund balances 9,383,161 33,361 16,683,591 26,100,113
Total liabilities, deferred inflows of resources
and fund balances 11,283,315$ 690,568$ 21,160,601$
Balance Sheet
Governmental Funds
December 31, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
29
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.185,325,762
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.(7,637,662)
Other long-term assests are not available to pay for current period expenditures and,
therefore, are deferred in the funds.2,218,060
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 9,712,576
between governmental activities are excluded.
Net position of governmental activities ( see page 26)215,718,849$
The notes to the financial statements are an integral part of this statement.
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
30
General Other
Fund Construction Governmental Total
REVENUES
Taxes 28,523,685$ -$ 3,232,741$ 31,756,426$
Licenses and permits 1,587,827 395,448 1,983,275
Intergovernmental revenue 1,960,962 1,762,499 3,144,274 6,867,735
Charges for services 5,683,455 6,878,353 12,561,808
Fines and forfeitures 868,689 91,902 960,591
Miscellaneous revenue 690,742 118,500 2,337,256 3,146,498
Total revenues 39,315,360 1,880,999 16,079,974 57,276,333
EXPENDITURES
Current:
General government 7,673,929 46,520 - 7,720,449
Public safety 18,692,966 - 3,417,410 22,110,376
Transportation 1,669,218 - 4,674,537 6,343,755
Natural & economic environment 1,756,317 - 2,812,134 4,568,451
Culture and recreation 4,432,438 - 2,720,765 7,153,203
Capital outlay:
General government - 506,044 - 506,044
Public safety 66,616 175,080 16,021 257,717
Transportation 2,793,633 58,052 2,851,685
Natural & economic environment 1,350,688 1,350,688
Culture and recreation 22,995 202,251 - 225,246
Debt service:
Principal 457,316 217,580 674,896
Interest 122,514 87,577 210,091
Total expenditures 34,894,309 3,723,528 15,354,764 53,972,601
Excess of revenues over (under) expenditures 4,421,051 (1,842,529) 725,210 3,303,732
OTHER FINANCING SOURCES (USES)
Sale of assets - 226,622 226,622
Transfers in 138,000 1,677,116 1,985,014 3,800,130
Transfers out (2,475,940) (1,866,860) (4,342,800)
Total other financing sources (uses)(2,337,940) 1,677,116 344,776 (316,048)
Net change in fund balances 2,083,111 (165,413) 1,069,986 2,987,684
Prior period adjustments 1,054,831 - 230,343 1,285,174
Fund balances - beginning 6,245,219 198,774 15,383,262 21,827,255
Fund balances - ending 9,383,161$ 33,361$ 16,683,591$ 26,100,113$
The notes to the financial statements are an integral part of this statement.
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
31
Net change in fund balances - total governmental funds 2,987,684$
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.(4,671,681)
The statement of net position shows a decrease in joint ventures not reported in the funds.(54,421)
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, 2014.674,896
Revenues reported in the statement of activies that do not provide current financial resources
are not reported as revenues in the funds.(553,786)
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 (393,530)
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 certain activity is reported with governmental
activities. 1,785,063
Change in net position of governmental activities (see page 27)(225,775)$
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, 2014
(Continued from prior page)
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
32
Original Final Variance to
Budget Budget Actual Final Budget
REVENUES
Taxes 25,031,714$ 27,176,714$ 28,523,685$ 1,346,971$
Licenses and permits 1,124,800 1,424,800 1,587,827 163,027
Intergovernmental revenue 1,496,000 1,496,000 1,960,962 464,962
Charges for services 5,391,233 5,751,233 5,683,455 (67,778)
Fines and forfeitures 882,000 837,000 868,689 31,689
Miscellaneous revenue 581,160 329,160 690,742 361,582
Total revenues 34,506,907 37,014,907 39,315,360 2,300,453
EXPENDITURES
Current:
General government 6,898,034 8,392,136 7,673,929 718,207
Public safety 18,169,741 19,172,441 18,692,966 479,475
Transportation 1,771,200 1,771,200 1,669,218 101,982
Natural & economic environment 1,740,090 1,833,090 1,756,317 76,773
Culture and recreation 4,276,728 4,735,338 4,432,438 302,900
Capital outlay:
General government 589,200 82,200 82,200
Public safety 162,100 83,600 66,616 16,984
Culture and recreation 150,000 24,000 22,995 1,005
Debt service:
Principal 457,316 457,316 457,316 -
Interest 122,514 122,514 122,514 -
Total expenditures 34,336,923 36,673,835 34,894,309 1,779,526
Excess of revenues over (under) expenditures 169,984 341,072 4,421,051 4,079,979
OTHER FINANCING SOURCES (USES)
Interfund loans repaid 3,839,956 3,839,956 (3,839,956)
Transfers in 238,000 238,000 138,000 (100,000)
Interfund loans issued (3,013,688) (3,013,688) 3,013,688
Transfers out (1,694,870) (2,598,942) (2,475,940) 123,002
Total other financing uses (630,602) (1,534,674) (2,337,940) (803,266)
Net change in fund balances (460,618) (1,193,602) 2,083,111 3,276,713
Prior period adjustments 1,054,831 1,054,831
Fund balances - beginning 5,902,824 5,902,824 6,245,219 342,395
Fund balances - ending 5,442,206$ 4,709,222$ 9,383,161$ 4,673,939$
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, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
33
Water/Sewer Internal
Utility Service
ASSETS
Current assets:
Cash 1,511,272$ 844,012$
Restricted Cash 285,605
Unspent bond proceeds
Investments 4,525,411 6,385,026
Restricted Investments 10,555,250
Receivables (net of allowances):
Customers 883,214 -
Interfund loans - current portion 487,457
Grants 81,943 -
Special assessments - current portion 299,749 -
Inventory 293,801 -
Total current assets 18,436,245 7,716,495
Noncurrent assets:
Interfund loan 1,037,110
Capital assets not being depreciated:
Land 2,520,925 -
Construction work in progress 5,738,643 212,450
Capital assets net of accumulated depreciation:
Buildings and structures 35,963,444 -
Machinery and equipment 6,690,748 5,155,714
Infrastructure 117,088,203 -
Total noncurrent assets 168,001,963 6,405,274
Total assets 186,438,208 14,121,769
LIABILITIES
Current liabilities:
Accounts payable 299,577 55,555
Unclaimed property 43,077
Retainage payable 147,505
IBNR payable from restricted assests 449,291
Customer deposits payable from restricted assets 447,169
Accrued interest payable 275,099
Compensated absences - current portion 162,830 -
Loans due to other governments - current portion 1,719,487
Revenue bonds - current portion 2,045,000
Total current liabilities 5,139,744 504,846
Noncurrent liabilities:
Compensated absences 69,784 -
Loans due to other governments 6,944,624
Current Portion Loan PayableRevenue bonds payable 25,985,000
Total noncurrent liabilities 32,999,408 -
Total liabilities 38,139,152 504,846
NET POSITION
Net investment in capital assets 135,483,147 5,368,164
Restricted 10,840,855 -
Unrestricted 1,975,054 8,248,759
Total net position 148,299,056 13,616,923
3,904,347
Net position of business-type activities (see page 26)152,203,403$
The notes are an integral part of this statement.
Statement of Net Position
Proprietary Funds
December 31, 2014
Adjustment for the net effect of the current year
activity between the internal service funds and
the enterprise fund
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
34
Water/Sewer Internal
Utility Service
OPERATING REVENUES
Charges for services 19,895,362$ 5,687,187$
Miscellaneous 55,450 2,815,404
Total operating revenues 19,950,812 8,502,591
OPERATING EXPENSES
Depreciation 6,256,194 689,103
Salaries and wages 2,830,832 298,525
Personnel benefits 1,343,932 129,207
Supplies 1,433,740 787,610
Services 7,738,008 4,934,945
Total operating expenses 19,602,706 6,839,390
OPERATING INCOME 348,106 1,663,201
NONOPERATING REVENUES (EXPENSES)
Interest and collection fees 30,190 18,074
Rents and leases 50,805
Grant 22,818
Gain on sale of capital assets (16,928)
Interest expense (1,491,873) -
Total nonoperating revenues (expenses)(1,388,060) 1,146
Income (loss) before contributions
and transfers (1,039,954) 1,664,347
Capital contributions 3,344,409
Transfers in 200,000 392,850
Transfers out (50,180)
Changes in net position 2,454,275 2,057,197
Prior period adjustments 689,746 27,854
Net position - beginning 145,155,035 11,531,872
Net position - ending 148,299,056 13,616,923$
Changes in net position 2,454,275
Adjustment for the net effect the current year
activity between the internal service funds and the
enterprise fund 272,133
Change in net position of business-type activities
(page 27)2,726,408$
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, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
35
Water/Sewer Internal
Utility Service
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers 19,905,453$ 8,502,591$
Payments to employees (4,161,379) (455,586)
Payments to suppliers (9,965,907) (5,974,271)
Net cash provided by operating activities 5,778,167 2,072,734
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:-
Prior period adjustments 27,854
Operating grants 22,818 -
Net cash provided from noncapital financial activities 22,818 27,854
CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from sale of assets - (10,650)
Acquisition of capital assets (4,447,590) (2,020,746)
Principal paid on debt (3,994,760) -
Interest paid on debt (1,525,148) -
Payments received from notes and loans 97,800 -
Transfers in (out) for capital 149,820 392,850
Capital charges 1,859,263
Capital grant and contribution proceeds 1,156,634 -
Net cash used by capital and related financing activities (6,703,981) (1,638,546)
CASH FLOWS FROM INVESTING ACTIVITIES
Investments Proceeds from sale of investments (13,366,265) (6,261,089)
Interest on investments 30,190
Interfund loan repayment - (891,606)
Net cash provided from investing activities (13,336,075) (7,152,695)
Net increase in cash (14,239,071) (6,690,653)
Beginning cash 15,750,343 7,534,665
Ending cash 1,511,272$ 844,012$
RECONCILATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net Operating Income 348,106$ 1,663,201$
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
Depreciation 6,256,194 689,103
Rents and leases 50,805
Changes in assets and liabilities
Decrease in customer receivables (96,164) -
Decrease in inventories (59,107) -
Increase in accounts payable and deposits (735,052) (251,716)
Increase in compensated absences 13,385 (27,854)
Net cash provide by operating activities 5,778,167$ 2,072,734$
NON CASH ACTIVITIES
Capital contributions 648,755$ -$
The notes to the financial statements are an integral part of this statement.
Statement of Cash Flows
Proprietary Funds
December 31, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
36
Pension and Other
Post-Employment
Benefits Agency
ASSETS
Cash 265,543$ 135,174$
Investments 4,711,147
Total assets 4,976,690 135,174
LIABILITIES
Accounts payable - 7,174
Due to others 128,000
Total liabilities - 135,174$
NET POSITION
Held in trust for pension benefits/other
post employment benefits 4,976,690$
The notes to the financial statements are an integral part of this statement.
Statement of Net Position
Fiduciary Funds
December 31, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
37
Pension and Other
Post-Employment
Benefits
ADDITIONS
Taxes 51,705$
Investment earnings 489,921
Total Additions 541,626
DEDUCTIONS
Pension benefits 102,971
Medical premiums 122,556
Administrative expenses 6,890
Total deductions 232,417
Change in net position 309,209
Net position - beginning 4,667,481
Net position - ending 4,976,690$
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, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
38
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 governmental 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 City of Pasco, as a primary government unit. The City of Pasco does
not have any component units.
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 nonfiduciary activities of the primary
government. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Our policy is to allocate indirect
costs to a specific function or segment. Program revenues include 1) charges to customers
or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and 2) grants and contributions that are restricted
to meeting the operational or capital requirements or 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. Revenues are recorded when earned and expenses are
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
39
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 government considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims 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, sales taxes, franchises taxes, licenses, and interest associated with the
current period are all considered to be susceptible to accrual and so have been recognized
as revenues of the current fiscal period. Entitlements are recorded as revenues when all
eligibility requirements have been 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 government.
Proprietary, pension, and other postemployment benefit trust, and private-purpose trust
funds are reported using the economic resources measurement focus and the accrual basis
of accounting. Agency funds have no measurement focus but utilize the accrual basis of
accounting for reporting its assets and liabilities.
The City of Pasco reports the following major governmental funds:
The General Fund: The General (or current expense) Fund is the City of Pasco’s
operating fund. It accounts for all financial resources of the general government,
except those required or elected to be accounted for in separate fund.
The Construction Fund: the Construction Fund is a capital project fund used to
account for significant construction and capital acquisition related to governmental
activities.
The City of Pasco reports the following major proprietary fund:
The Water/Sewer Fund: the Water/Sewer Fund accounts for water, sewer, water
reuse, storm water and irrigation utility activities.
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
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Additionally, the City of Pasco reports the following fund types:
Special Revenue funds are used to account for specific revenue sources that are
restricted, committed, or assigned to expenditures for a particular purpose.
Debt Services funds are used to account for the resources accumulated and
payments made for principal and interest on long –term general obligation debt of
governmental 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
government’s program.
Internal Service funds are used to account for equipment replacement and
operations, central stores, as well as medical/dental insurance services provided to
other departments on a cost-reimbursement basis.
Pension Trust funds are used to account for the sources and uses of funds to meet
the pension benefit and other post-employment benefit obligations made to firemen
covered under the Plan prior to the creation of the Law Enforcement Officers and
Fire Fighters’ (LEOFF) pension system in 1970.
Agency funds are used to report resources held by the city in a purely custodial
capacity on behalf of the Pasco Public Facility District, the Animal Control
Authority and on behalf of all employees for Payroll Clearing and those employees
with Flexible Spending Accounts.
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.
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
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
41
on capital assets. All revenues and expenses not meeting this definition are reported as non-
operating revenues and expenses.
D. Budgetary Information
1. Scope of Budget
Annual appropriated budgets are adopted for the general, special revenue, proprietary
and pension trust funds, on a modified accrual basis.
Budgets are adopted at the level of the fund, except in the general (current expense) fund,
where expenditures may not exceed appropriations at the department level and the
budgets constitute the legal authority for expenditures at that level.
Appropriations for all funds lapse at year-end. Budgets for capital outlays are re-
appropriated until the purpose of the appropriation has been accomplished or abandoned.
2. Amending the Budget
The City Manager is authorized to transfer budgeted amounts between object classes
within departments in the General Fund and the Water/Sewer Fund; and between object
classes in other funds. However, any revisions that alter the total appropriations of a
department with the General or Water/Sewer Funds or the total of other funds, 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 City Council determines that it is in the best interest of the City of Pasco to increase
or decrease the appropriation for a particular fund or department, it may do so by
ordinance approved by one more than the majority after holding public hearings.
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.
3. Excess of Expenditures over Appropriations
No funds exceeded their appropriations for 2014.
4. Deficit Fund Net Position
The LID Loans Fund showed a deficit fund equity position at December 31, 2014 of
$456,572. This is expected and normal since the debt related to these funds is from an
internal loan rather than an external funding source. With internal financing the debt is
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
42
carried within the fund and therefore results in a negative fund balance. Cash balances
were positive for this fund at the end of the year. If the financing were external, no fund
deficit would exist.
E. Assets, Liabilities, Fund Balance, Net Position
1. Cash (See Note 3A, Deposits and Investments)
The City’s cash is considered to be cash on hand and demand deposits.
It is the City of Pasco’s policy to invest all temporary cash surpluses. However, at
December 31, 2014, the treasurer was held a cash position of $7,264,020 in bank
deposits. This amount is classified on the balance sheet as cash. Prior to 2014, the State
Treasurer’s Local Government Investment Pool (LGIP) investments were classified on
the balance sheet as cash equivalents.
2. Investments (See Note 3A, Deposits and Investments)
State statutes and the city’s investment policies authorize the city to invest in obligations
of the U.S. treasury, repurchase agreements and the LGIP.
Investments are reported at fair value for the items held. 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.
3. Receivables (See Note 3 B, Receivables)
Taxes receivable consist of property taxes, sales taxes, interfund taxes, business and
occupation taxes, and excise taxes and related interest and penalties. Accrued interest
receivable consists of amounts earned on investments, notes, and contracts at the end of
the year.
Special assessments are recorded when levied. Special assessments receivable consist
of current and delinquent assessments and related interest and penalties. Deferred
assessments on the fund financial statements consist of unbilled. Special assessments
that are liens against the property benefitted. As of December 31, 2014, $424,288 of
Governmental and $21,878 of Business-type special assessments were delinquent.
Customer accounts receivable consist of amounts owed from private individuals or
organizations for goods and services including amounts owed for which billings have
not been prepared. Notes and contracts receivable consist of amounts owed on open
account from private individuals or organizations for goods and services rendered.
The allowance for uncollectible accounts for the ambulance fund is approximately 22%
of the outstanding receivable at December 31, 2014.
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
43
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. The allowance for uncollectible accounts for the municipal court
receivables is approximately 95% of the outstanding receivable at December 31, 2014
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. The
repayment of these loans is used to establish revolving loan funds for loans that match
the original grant purpose.
4. Amounts Due to and from Other Funds and Governments, Interfund Loans and
Advances Receivable
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either interfund loans
receivable/payable or advances to/from other funds. All other outstanding balances
between funds are reported as due to/from other funds. Any residual balances
outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as internal balances. A separate
schedule of interfund loans receivable and payable is furnished in Note 3D, Interfund
Balances and Transfers.
Advances between funds, as reported in the fund financial statements, are offset by a
fund balance reserve account in applicable governmental funds to indicate that they are
not available for appropriation and are not expendable available financial resources.
5. Inventories
There are currently no inventories in governmental funds. Inventories in proprietary
funds are valued using a floating average of costs, which approximates market value.
6. Restricted Assets and Liabilities
These accounts contain resources for construction and debt service, including current
and delinquent special assessments receivable, in the enterprise fund. The current
portion of related liabilities is shown as Payables from Current Restricted Assets.
Specific debt service reserve requirements are described in Note 3 F, Long-Term Debt.
The restricted assets of the enterprise funds are composed of the
following:
Cash and Investments - Debt $11,789,859
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Cash and Investments - Deposits 447,169
Cash and Investments – Unclaimed Property 43,077
Special Assessments - Current 277,871
Special Assessments - Delinquent 21,878
Total $12,579,854
7. Capital Assets (See Note 3 C, 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 2014.
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 1 - 50
Infrastructure $5,000 5 - 50
8. Deferred Outflows/Inflows of Resources
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
45
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 2014 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. 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.
10. Other Accrued Liabilities
These consist of accrued employee benefits.
11. Long-Term Debt (See Note 3 F, Long-Term Debt)
In the government-wide 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 statements of net
position.
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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 financing 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.
12. Unearned Revenues
This account includes amounts recognized as receivables but not revenues in governmental funds
because the revenue recognition criteria have not been met.
13. Fund Balance Classification
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 f und
balance) or an assignment (assigned fund balance).
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 s imilar 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.
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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.
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:
City of Pasco, Washington 2014 Comprehensive Annual Financial
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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:
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:
Beginning balances of long-term assets excluded from fund level:
Joint ventures 114,218$
Capital assets
Land 12,709,885
Construction in Progress 11,328,404
Building 23,645,146
Other Improvements 4,041,084
Equipment 2,467,576
Infrastructure 136,231,220
Current year spending on Construction in Progress 3,699,632
Current year capital purchases 1,491,749
Current year capital donations received 2,538,995
Current year decrease in joint venture (54,421)
Current year capital asset disposals (485,670)
Current year depreciation (12,402,056)
Net adjustment to add to government-wide find balance to arrive at
Net Position-governmental activities 185,325,762$
Beginning balances of long-term liabilities excluded from fund level:
Compensated absences-restated (1,627,815)
OPEB Obligation (1,981,585)
Bonds and notes payable (4,279,502)
Current year principal payments reducing debt 674,896
Current year OPEB and Compensated Absences expense recognized (423,656)
Net adjustment to reduce government-wide fund balance to arrive at
Net Position-governmental activities (7,637,662)$
City of Pasco, Washington 2014 Comprehensive Annual Financial
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NOTE 3 – DETAILED NOTES ON ALL FUNDS
A. Deposits, investments and restricted assets
As of December 31, 2014 the government had the following:
Weighted Average
Fair Value Maturities (Years)
Local Government Investment Pool
Total Invested Cash Equivalents $31,086,547 N/A
Investments in Federal Agencies 10,390,018 4.17
Investment in Mutual Funds 4,592,468 N/A
Investment in Notes 48,320 6.34
Total fair value $46,117,353
Portfolio weighted average maturity 4.18
Interest rate risk. Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. In accordance with its investment policy, the City manages its exposure
to declines in fair value by limiting the maturity of investments. Investments over one year require
the City Manager’s approval. In addition, to achieve its financial objective of maintaining liquidity
to meet all operating requirements, the City typically selects investments that have shorter average
maturities. The city’s investment policy does not specifically address interest rate risk.
Credit risk. Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations. The city investment policy allows the following types of investments in
accordance with state law: demand or investment deposits in qualified public depositories located
within the state; United States’ government bonds, notes bills; certificates of deposits from
financial institutions that participate in Washington State’s Public Deposit Protection
Commission’s list of “Qualified Public Depositories”; bankers acceptances, repurchase
agreements and the Washington State Treasurer’s Office Local Government Investment Pool
(LGIP). The investment policy for “credit risk” does not extend beyond the types of authorized
investments and the concentration of credit risk described below. As of December 31, 2014 the
2014
Capital outlays for:
Land 1,350,688$
Construction in process 3,699,632
Building and structure 22,996
Machinery and equipment 118,066
Contributed Capital assets 2,538,995
Curreny year deparcaiation
Building and structure (1,110,275)
Other improvement (556,465)
Machinery and equipment (347,040)
Infrastructrure (10,388,275)
Net capital activity (4,671,678)$
City of Pasco, Washington 2014 Comprehensive Annual Financial
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City’s investments in agency securities were all rated AAA. The LGIP is not registered with the
SEC and the fair value of the city’s position in the pool is the same as the value of the pool shares.
The LGIP is regulated by the state of Washington’s state finance committee. Credit risk is limited
as most investments are either obligations of the U.S. Government, government sponsored
enterprises, insured demand deposit accounts or certificates of deposit.
Concentration of credit risk. Concentration of credit risk is the risk of loss attributed to the
magnitude of a government’s investment in a single issuer. It is the policy of the city to diversify
its investment portfolio to eliminate the risk of loss resulting from overconcentration of assets in a
specific class of securities. With the Exception of U.S. Treasury securities and the State Treasurer’s
Local Government Investment Pool (LGIP) no more than twenty percent of the city’s total
investment portfolio should be invested in a single security type and not more than twenty percent
should be invested with a single financial institution.
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 $8,121,722 on deposit with US Bank on
December 31, 2014. The FDIC insures those deposits up to $250,000. US Bank is required to
collateralize 10% of the remaining funds which is $787,172. The temporary custodial credit risk
for uncollateralized deposits at US Bank was $7,084,550 on December 31, 2014.
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
Issuer Fair Value Percentages
Local Government Investment Pool $31,086,547 67.41%
Federal National Mortgage Association 5,927,863 12.85%
American Funds 4,592,468 9.96%
Federal Home Loan Mortgage Corporation 2,022,981 4.39%
US Financing Corporation 1,986,161 4.31%
Small Business Administration 453,013 0.98%
City of Pasco 48,320 0.10%
$46,117,353 100.00%
City of Pasco, Washington 2014 Comprehensive Annual Financial
Report
51
collateral securities that are in the possession of an outside party. The city limits its custodial credit
risk by holding investments that are insured and are registered or held by the city’s agent in the
city’s name. Certificates of deposits are entirely covered by federal depository insurance (FDIC
and FSLIC) or by collateral held in a multiple financial institution collateral pool administered by
the Washington Public Deposit Protection Commission (PDPC).
Restricted assets. The corpus of permanent funds is included in restricted assets. The Water/Sewer
utility issued bond proceeds prior to 2014 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 $454,553
Water/Sewer Debt Reserve account $3,188,801
Water/Sewer Debt Service account 2,986,513
Water/Sewer Bond Proceeds 4,175,295
Water/Sewer Customer Deposits 447,169
Claims incurred but not reported (IBNR) 449,292
Landfill Remediation 406,448
Governmental Funds Customer Deposits 99,511
Drug Forfeit and Evidence 74,288
Unclaimed Property 66,647
Municipal Court Trust 47,750
Imprest Accounts 21,055
Bi-centennial Contribution 6,264
Water/Sewer Special Assessments Receivable 299,750
Governmental Special Assessments Receivable 671,546
____________ ___________
Totals $12,940,329 $454,553
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.
City of Pasco, Washington 2014 Comprehensive Annual Financial
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Property taxes. The county treasurer acts as an agent to collect property taxes levied in the county
for all taxing authorities. Collections are distributed by the 10th day of the following month.
Property Tax Calendar
January 1 Taxes are levied and become an enforceable lien against properties.
February 14 Tax bills are mailed
April 30 First of two equal installment payments is due.
May 31 Assessed value of property established for next year’s levy at 100% of
market value.
October 31 Second installment is due.
Property taxes are recorded as a receivable when levied, offset by deferred revenue. During the
year property tax revenues are recognized when cash is collected and deferred property tax revenue
is reduced. Prior year tax levies were recorded using the same principle. The reported balances
include tax payments from the county received through December 31, 2014. Tax receipts received
by the county in December and January but remitted to the City in January and February are
included as part of the tax receivable amount reported. Delinquent taxes totaled $242,553 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. This
retroactivity extinguishes the additional levying capacity resulting from the November
2007 court ruling but lets stand any banked capacity accumulated prior to the court
ruling and the authority to continue to bank future unused capacity.
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. In November 2014, the City approved an ordinance establishing the
City of Pasco, Washington 2014 Comprehensive Annual Financial
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operating levy for 2015 of $7,159,507 based on an assessed valuation of $3,687,411,102 and an
estimated rate of $1.94160802 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 ($56,363) and the 1999 UTGO bond for the Fire Station ($71,387).
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, 2014 the only major fund of the city to have an allowance
for uncollectible accounts was the General Fund. This allowance of $9,010,482 relates to
municipal court receivables. Non-major funds receivable balances include the applicable
allowance for uncollectible accounts (which relates to ambulance services) of $100,000.
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 $ 242,553
Unavailable Revenue – Special Assessments/Loans 820,435
Unavailable Revenue – Municipal Court 998,940
Unavailable Revenue – Grants 79,207
Unavailable Revenue – Other 76,926
Total $2,218,061
Loans receivable. Loans receivables consist of amounts owed on an open account from private
individuals or organizations for goods and services rendered. Since the City is unable by law to
grant credit to any entity, all loans receivable are related to grant monies received from other
agencies which have authorized the loan as part of the grant process. Repayments of these loans
are used to establish revolving loan funds for loans that match the original grant purpose. The long
term portion of those loans receivable are included in reserved fund balance as the assets are not
available to liquidate liabilities in the current period.
City of Pasco, Washington 2014 Comprehensive Annual Financial
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C. Capital Assets
Capital asset activity for the year ended December 31, 2014 was as follows:
Governmental Activities:
Beginning
Balance
01/01/14
Current Period
Increases
Current
Period
Decreases
Ending Balance
12/31/14
Capital assets, not being depreciated
Land 12,709,885$ 2,003,588$ 42,358$ 14,671,115$
Construction in progress 11,328,404 5,072,668 3,732,728 12,668,345
Total capital assets, not being depreciated 24,038,289 7,076,256 3,775,086 27,339,460
Capital assets, being depreciated:
Building & structure 37,944,848 207,758 486,094 37,666,512
Other improvements 9,240,869 - - 9,240,869
Machinery and equipment 11,598,811 1,372,252 89,915 12,881,148
Infrastructure 197,621,220 4,179,873 - 201,801,093
Total capital assets being depreciated 256,405,748 5,759,883 576,009 261,589,622
Less accumulated depreciation:
Building & structure 14,299,702 1,110,275 42,782 15,367,195
Other improvements 5,199,785 556,467 - 5,756,252
Machinery and equipment 6,279,219 808,217 88,967 6,998,469
Infrastructure 61,390,000 10,388,274 - 71,778,274
Total accumulated depreciation 87,168,706 12,863,233 131,749 99,900,190
Total capital assets, being depreciated, net 169,237,042 (7,103,350) 444,260 161,689,432
Governmental activities capital assets net 193,275,331$ (27,094)$ 4,219,346$ 189,028,892$
Business Type Activities:
Beginning
Balance
01/01/14
Current Period
Increases
Current
Period
Decreases
Ending Balance
12/31/14
Capital assets, not being depreciated
Land 2,520,925$ -$ -$ 2,520,925$
Construction in process 7,445,063 5,058,467 6,764,887 5,738,643
Total capital assets, not being depreciated 9,965,988 5,058,467 6,764,887 8,259,568
Capital assets, being depreciated:
Building & structure 72,519,591 1,080,596 - 73,600,187
Machinery and equipment 10,643,699 720,356 226,618 11,137,437
Infrastructure 147,098,667 5,649,519 - 152,748,186
Total capital assets being depreciated 230,261,957 7,450,471 226,618 237,485,810
Less accumulated depreciation:
Building & structure 35,084,911 2,551,832 - 37,636,743
Machinery and equipment 2,147,877 914,861 221,286 2,841,452
Infrastructure 32,642,560 3,017,423 - 35,659,983
Total accumulated depreciation 69,875,348 6,484,116 221,286 76,138,178
Total capital assets, being depreciated, net 160,386,609 966,355 5,332 161,347,632
Business activities capital assets net 170,352,597$ 6,024,822$ 6,770,219$ 169,607,200$
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Depreciation expense by function:
Construction commitments
The City of Pasco has active construction projects as of December 31, 2014. 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, 2014 is as follows:
Governmental activities:
General government 401,532$
Public Safety 338,378
Transportation 10,698,525
Economic environment 199,938
Culture & recreation 1,224,860
Total depreciation expense - governmental activities 12,863,233$
Business-type activities:
Water 2,441,568$
Sewer 3,114,918
Process water reuse facility 233,055
Stormwater 218,527
Irrigation 476,048
Total depreciation expense- business-type activities:6,484,116$
PROJECT SPENT REMAINING
CATEGORY COMMITMENTS TO DATE COMMITMENTS
STREET 5,984,358.00$ 1,450,522.00$ 4,533,836.00$
GENERAL 5,622,629 3,446,243 2,176,386
PARKS 167,204 167,204
WATER 957,064 420,263 536,801
SEWER 2,633,736 1,754,326 879,410
PROCESS WATER REUSE FACILITY 4,392,383 2,929,430 1,462,953
STORMWATER 32,166 32,166
IRRIGATION 2,060,243 2,046,786 13,457
TOTAL 21,849,783$ 12,047,570$ 9,802,213$
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Interfund transfers
Transfers between funds during the year ended December 31, 2014 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 pa y the general fund for
maintenance activities; from earnings and fund balance of the Boulevard Maintenance fund to
the general fund to pay for boulevard maintenance activities and from the general fund to the
ambulance fund.
Interfund Loans Loan Original Outstanding Interfund Loan Due In Less
Receivable Purpose Loan Amount Loan Amount Payable Than 1 Year
General Fund PWRF asset purchase $700,000 $239,118 Non-major Special Revenue Fund $239,118
Non-major Special Revenue Fund Parking Lot Resurface 689,000 472,769 Non-major Special Revenue Fund 113,005
Non-major Special Revenue Fund Permanent LID Financing 177,964 177,964 Non-major Debt Service 14,822
Non-major Special Revenue Fund Permanent LID Financing 236,628 236,628 Non-major Debt Service 19,709
Internal Service Fund Land Purchase Financing 1,400,000 1,400,000 Non-major Special Revenue Fund 457,457
Internal Service Fund Permanent LID Financing 438,905 124,567 Non-major Debt Service 60,000
$3,642,497 $2,651,046 $904,111
General Nonmajor
Special Utility Total
General 138,000$ 138,000$
Nonmajor Special Revenue 1,585,720$ 399,294 1,985,014
Major Construction 585,570 1,041,366 50,180$ 1,677,116
Major Utility 200,000 200,000
Internal Service 304,650 88,200 392,850
Total 2,475,940$ 1,866,860$ 50,180$ 4,392,980$
TRANSFER FROM
T
R
A
N
S
F
E
R
T
O
City of Pasco, Washington 2014 Comprehensive Annual Financial
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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. In addition the city has two leases for
copiers. 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, 2014 was as follows:
Year Ending
December 31 Amount Year Ending December 31 Amount
2015 3,388$ 2015 317,118$
2016 847 2016 189,209
2017 31,167
Total 4,235$ Total 537,494$
Copier Lease Police vehicles
Changes in Long-Term Liabilities Beginning Ending
Balance Additions Reductions Balance
GOVERNMENTAL ACTIVITIES
General obligation bonds $3,835,000 ($520,000)$3,315,000
Special Assessment bonds 226,590 (18,270) 208,320
Due to Other Governments 1 995,888 (247,766) 748,122
Compensated absences 2 1,627,815 $1,294,077 (1,412,296) 1,509,596
Net OPEB obligation 1,981,585 1,191,159 (649,284) 2,523,460
Governmental activity long-term liabilities $8,666,878 $2,485,236 ($2,847,616)$8,304,498
BUSINESS-TYPE ACTIVITIES
Revenue bonds $29,280,000 ($2,215,000)$27,065,000
Special Assessment bonds 1,075,000 (110,000) 965,000
Due to Other Governments 1 9,555,867 (1,558,627) 7,997,240
Compensated absences 2 219,230 $237,541 (224,157) 232,614
Business-type activity long-term liabilities $40,130,097 $237,541 ($4,107,784)36,259,854
Total Changes in Long-Term Liabilities $48,796,975 $2,722,777 ($6,955,400)$44,564,352
City of Pasco, Washington 2014 Comprehensive Annual Financial
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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 Animal Control facilities and Port Airport Fire Building. 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.
Notes:
1Reclassification of Public Works Trust Fund Loan "Riverview Trunk/SE Sewer" to general obligation Due to Other
Governments is the result of a classification correction. This increased and reduced the "Due to Other Governments"
balances of the general and revenue obligations, respectively, by $777,983.
2Due to prior period corrections, the beginning balances for compensated absences were restated. The general and
revenue obligation balances were reduced by $269,640 and $283,934, respectively.
GOVERNMENTAL ACTIVITIES:
GENERAL OBLIGATION BONDS
MATURITY INTEREST ORIGINAL DUE WITHIN
PURPOSE RANGE RATE RANGE AMOUNT ONE YEAR
1999 LTGO Library and Fire Station 2015-2019 5.25% - 5.60%$1,700,000 $100,000
2011 LTGO Refund 2001 LTGO 2015-2020 2.00% - 4.00%4,110,000 430,000
Totals 5,810,000 530,000
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2015 530,000 131,600
2016 545,000 113,250
2017 560,000 94,400
2018 575,000 70,400
2019 595,000 45,800
2020-2024 510,000 20,400
Totals $3,315,000 $475,850
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
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- -
SPECIAL ASSESSMENT BONDS
MATURITY INTEREST ORIGINAL DUE WITHIN
PURPOSE RANGE RATE RANGE AMOUNT ONE YEAR
LID 145 A Street Improvements 2015-2020 2.25% - 5.00% $785,129 -$
LID 146 Kurtzman Improvements 2015-2021 4.10%89,351 $8,019
Totals 874,480 8,019
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2015 8,019 9,781
2016 6,348 9,452
2017 6,608 9,192
2018 6,879 8,921
2019 87,161 8,639
2020-2024 93,305 4,786
Totals $208,320 $50,771
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
- -
DUE TO OTHER GOVERNMENTS
MATURITY INTEREST ORIGINAL DUE WITHIN
PURPOSE RANGE RATE AMOUNT ONE YEAR
Riverview Trunk/SE Sewer PW-00-691-043 2015-2020 1.00%$1,890,000 $111,140
2002 Animal Control Facililty Land 2015-2016 6.24%275,500 29,270
2006 Port Airport Fire Building 2015-2016 4.00%120,000 13,940
Totals 2,285,500 154,350
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2015 154,350 10,532
2016 149,211 7,060
2017 111,140 4,446
2018 111,140 3,334
2019 111,140 2,223
2020-2024 111,141 1,111
Totals $748,122 $28,706
TOTAL GOVERNMENTAL ACTIVITIES:$4,271,442 $555,327
- 5,367
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
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BUSINESS TYPE ACTIVITIES:
REVENUE BONDS
MATURITY INTEREST ORIGINAL DUE WITHIN
PURPOSE RANGE RATE RANGE AMOUNT ONE YEAR
2002 Water/Sewer 2015- 2022 3.50%-4.70%$5,945,000 $405,000
2005 Water/Sewer 2015- 2025 4.00%-1.25%4,400,000 205,000
2009 Water/Sewer 2015- 2029 3.00%-4.75%9,145,000 370,000
2010 A Ref 1998B Plus New 2015- 2029 3.00%-4.370%9,070,000 260,000
2010 T Ref 1998A 2015-2018 4.62%1,240,000 160,000
2013 A Sewer 2014-2028 3.00%-4.00%2,520,000 100,000
2010 T Process Water Reuse Facility 2015-2028 0.69%-4.89%7,235,000 435,000
Totals 39,555,000 1,935,000
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2015 1,935,000 1,079,634
2016 1,965,000 1,022,870
2017 1,990,000 945,129
2018 1,670,000 872,898
2019 1,615,000 816,166
2020-2024 9,030,000 3,082,084
2025-2029 8,860,000 1,050,203
Totals $27,065,000 $8,868,984
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
SPECIAL ASSESSMENT BONDS
MATURITY INTEREST ORIGINAL DUE WITHIN
PURPOSE RANGE RATE RANGE AMOUNT ONE YEAR
2007 Water/Sewer ULID 2015- 2022 4.25%-4.75%$845,000 $50,000
2009 Water/Sewer 2015- 2029 3.00%-4.75%900,000 60,000
Totals 1,745,000 110,000
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2015 110,000 44,907
2016 60,000 43,427
2017 110,000 41,805
2018 110,000 37,765
2019 110,000 33,651
2020-2024 465,000 104,450
Totals $965,000 $306,005
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
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NOTE 4 – RISK MANAGEMENT
The City of Pasco maintains insurance against most normal hazards except for unemployment and
automobile collision, where it has elected to become self-insured.
For unemployment claims, the City is on a 100% reimbursable program with the State where the
City pays all unemployment claims charged against it.
The City 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 durin g
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,
DUE TO OTHER GOVERNMENTS
INTEREST ORIGINAL DUE WITHIN
PURPOSE MATURITY RATE AMOUNT ONE YEAR
Waste Water Polution Control Facilities PWTF 95-0256/30/2015 1.00%$812,700 $43,011
West Pasco Water System PWTF 95-026 6/30/2015 1.00%2,687,300 107,375
Sewer Treatment Plant Phase 1&2 SRF Loan 10/13/2015 1.00%23,700,000 1,457,961
Totals 27,200,000 1,608,347
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2015 1,608,347 263,498
2016 1,509,436 210,519
2017 1,562,729 157,227
2018 1,617,903 102,053
2019 1,675,565 44,931
2020-2024 23,260 1,167
Totals $7,997,240 $779,395
TOTAL BUSINESS-TYPE ACTIVITIES:$36,027,240 $9,954,384
GRAND TOTALS:$40,298,682 $10,509,711
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
City of Pasco, Washington 2014 Comprehensive Annual Financial
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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.
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 total amounts of medical/dental claims paid,
including those paid by the City’s stop-loss insurance carrier, during the last three years are:
2012 2013 2014
$4,113,300 $4,575,365 $4,396,624
NOTE 5: JOINT AGREEMENT/JOINT VENTURES
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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 net position will be shared based upon participant contributions.
Effective January 1, 1992, the City of Kennewick assumed responsibility for the operation of the
BI-PIN system. As the Operating Jurisdiction, the City of Kennewick provides all necessary
support services for the operation of BI-PIN such as accounting, legal services, risk management
and information systems. The equity reduced by BI-PIN in 2014 for these transactions was
$31,441.
The City of Pasco's equity interest in BI-PIN was $52,949 on December 31, 2014, 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 99336.
Metropolitan Controlled Substance Enforcement Group
The Metropolitan Controlled Substance Enforcement Group (Metro) was established prior to 1987,
when six participating municipal corporations entered into an Interlocal Agreement. These entities
include the cities of Kennewick, Pasco, Richland, and West Richland, and Benton and Franklin
Counties. Metro was established to account for the proceeds of forfeitures, federal grants, and
court ordered contributions, and to facilitate the disbursement of those proceeds for the purpose of
drug enforcement and investigations. Metro is served by an Executive Committee composed of
the City Manager, or designee, of each of the cities and a member from each of the Boards of
County Commissioners of Benton and Franklin Counties. In addition, a Governing Board,
consisting of the Police Chiefs from each of the cities and the Sheriffs and Prosecuting Attorneys
from the two counties, administers daily activity.
Effective July 1, 2009, the City of Kennewick assumed responsibility for the operation of Metro.
As the Operating Jurisdiction, the City provides all necessary support services for the operation of
Metro such as accounting, legal services and risk management.
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The City of Pasco's equity interest in Metro was $6,848 as of June 30, 2014, which is reported as
an investment in joint ventures in the government-wide Statement of Net position. The 2014
reduction in equity was $22,980. 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,
210 West Sixth Avenue, Kennewick, Washington 99336.
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 (ACA). The ACA was established to
provide animal control and sheltering services. ACA is served by an Executive Committee
composed of the City Manager, or designee, of each of the cities.
In 2005, the City of Pasco was designated as the Operation Jurisdiction for the ACA. As the
Operating Jurisdiction, the City provides all necessary support services for the operation such as
accounting, contract administration and risk management.
Complete separate financial statements for ACA may be obtained from the City of Pasco, P.O. Box
293, Pasco, Washington 99301.
NOTE 6: RELATED PARTIES/ORGANIZATIONS
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 was 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 serve 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 or in its Charter.
City of Pasco, Washington 2014 Comprehensive Annual Financial
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Complete separate financial statements for the District may be obtained from the City of Pasco,
P.O. Box 293, Pasco, WA 99301.
Downtown Pasco Development Authority
Pursuant to RCW 35.21, the Downtown Pasco Development Authority was formed and created by
Ordinance No. 3985 (the DPDA Act) on December 20, 2010, coextensive with the boundaries of
the City, with the powers and authority set forth in the City DPDA Act. The Authority was created
to administer and e xecute Federal grants or programs; to receive and administer private
funds; goods or services for any lawful public service; and to perform any lawful public
purpose or public function to provide for the revitalization and enhancement of the
downtown Pasco area.
The members of the board of directors of the Authority (the “DPDA Board”) are selected and
appointed by the Mayor of the City of Pasco, subject to confirmation by the City Council. The
DPDA Board consists of nine members. Five of the members are representative of for-profit
business or propert y owners within the downtown area. At least two members are representative
of the banking and/or real estate profession, and at least two members are representatives of
business or corporate management. The members serve four-year terms. The Council may, by
resolution, remove a member for any reason. Vacancies will be filled by appointment by the
Mayor, subject to confirmation by the City Council.
All corporate powers of the Authority will be exercised by or under the authority of the DPDA
Board; and the business, property and affairs of the Authority shall be managed under the direction
of the DPDA Board, except as may be otherwise provided by law or in its Charter.
In 2014, the City expended $149,800 in subsidies and pass-through grants to the DPDA. As part
of its charter, the DPDA was granted the right to receive the revenues generated by the Farmers’
Market and the Specialty Kitchen program. The activity from those two programs are not reflected
in the amount noted above.
Financial statements for the Authority may be obtained from the Downtown Pasco Development
Authority at 720 W. Lewis Street, Suite 131, Pasco, WA 99301.
Trade, Recreation, Agricultural Center
In 1994 the City entered into an agreement with Franklin County for the Trade, Recreat ion, and
Agricultural Center (TRAC). The City and Franklin County share in the costs of operating and
covering TRAC’s debt service. Franklin County handles all operating decisions and financial
reporting for TRAC.
The City accounts for its portion of TRAC activity in the TRAC Special Revenue Fund. For
calendar year 2014, the City of Pasco paid Franklin County $264,575 and $104,127 for operating
and debt service expenditures, respectively. Additionally, the City provided $100,000 to the
County to assist with TRAC’s cash flows. This will be returned to the City in 2026, when the
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existing agreement lapses. It is classified on the balance sheet as a non-current asset: Due from
Other Government. As of December 31, 2014, the TRAC Fund had a fund balance of $203,045.
Complete financial statements for TRAC may be obtained from Franklin County, 1016 N. 4 th
Avenue, Pasco, Washington.
Housing Authority of the City of Pasco and Franklin County
The Housing Authority of the City of Pasco and Franklin County was formed and created by
Ordinance No. 2299 on September 8, 1981, in order to pursue the rehabilitation and redevelopment
of blighted areas containing unsanitary or unsafe habitations located within the City of Pasco and
Franklin County. Its formation empowered the joint housing authority to exercise all rights referred
to under RCW 35.82 “Housing Authority Law.”
Three of the five Authority board members are appointed by the City Council.
During 2014, the Authority received $33,605 in pass-through grants administered by the City. All
other payments received from the City related to lease payments and a utility refund. In 2014, the
City and the Authority entered into an agreement which will result in Payment in Lieu of Taxes
(PILOT) to the City starting in 2015 in order to defray the cost of the City providing essential local
public services.
Financial statements for the Authority may be obtained from the Housing Authority of the City of
Pasco and Franklin County, 2505 W. Lewis Street, Pasco, WA 99301.
NOTE 7: JOINTLY GOVERNED ORGANIZATIONS:
Tri-Cities Regional Public Facilities District
Pursuant to RCW 35.57 the Tri-Cities Regional Public Facilities District (District) was formed
jointly by the Cities of Pasco, Kennewick, and Richland. The District was 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 districts in a cooperative and joint
development of a Regional Center in the Tri-Cities area, by interlocal agreement.
The District is governed by a nine-member board, with three members representing each city.
Each member must either be a member of the City Council or the Public Facilities District of the
representative city.
Franklin County Emergency Management
Franklin County Emergency Management (FCEM) is a political subdivision of Franklin County
and its municipalities. The FCEM is responsible for coordinating and establishing emergency
response plans to prepare Franklin County for emergencies involving the following: Energy
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Northwest; the Hanford Nuclear Reservation; the Pasco Airport; and all Homeland Security,
natural and man-made disasters
FCEM is governed by a seven member board, with two County Commissioners, one City Manager
or designee from each of the following cities: Connell, Kahlotus, and Mesa. The City of Pasco
has two representatives on the board due to its population base.
Benton-Franklin Council of Governments
The Benton-Franklin Council of Governments (BFCG) is a voluntary association of the units of
local government, whose purpose is to facilitate a cooperative approach to regional problem
solving.
Seventeen regular voting members represent the two counties, local governments, including a
Public Utility District, a Transportation District, a Port and the Washington State Department of
Transportation. The City of Pasco has one City Council member as its voting representative on
the Board. In addition to regular voting members, there are one associate member and two affiliate
members.
Benton-Franklin Council of Governments Economic Development District
The Benton-Franklin Council of Governments Economic Development District (EDD) is a
voluntary association of the units of local government and private sector members whose purpose
is to facilitate a cooperative approach to regional economic development.
The board is comprised of the members of the Benton-Franklin Council of Governments plus nine
representatives from the private sector.
8. EMPLOYEE RETIREMENT SYSTEMS AND PENSION PLANS
Substantially all City of Pasco 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.1 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.
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.
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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.
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 $350 a month,
or two-thirds of the monthly AFC, whichever is less. The benefit is reduced by any workers’ compensation
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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.
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.
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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.
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.
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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, 2013:
Retirees and Beneficiaries Receiving Benefits 85,328
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 31,047
Active Plan Members Vested 150,706
Terminated Plan Members Nonvested 101,191
Total 368,272
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.
The required contribution rates expressed as a percentage of current-year covered payroll, as of
December 31, 2014, 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.
Members Participating in JBM:
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PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer-State
Agency* 11.71% 11.71% 11.71%**
Employer-Local
Gov’t Units* 9.21% 9.21% 9.21%**
Employee-State
Agency 9.76% 9.80% 7.50%***
Employee-Local
Gov’t Units 12.26% 12.30% 7.50%***
* The employer rates include the employer administrative expense fee currently set at 0.18%.
** Plan 3 defined benefit portion only.
***Minimum rate.
Both the City of Pasco 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
2014 $31,484 $792,667 $172,109
2013 $35,884 $654,389 $117,580
2012 $35,356 $586,286 $101,264
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.
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
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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.
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.
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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.
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, 2013:
Retirees and Beneficiaries Receiving Benefits 10,511
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 699
Active Plan Members Vested 16,830
Terminated Plan Members Nonvested 1,600
Total 29,640
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
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special funding situation is not mandated by the state constitution and could be changed by statute. For
DRS’ Fiscal Year 2014, the state contributed $55.6 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, 2014, 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%.
Both the City of Pasco and the employees made the required contributions. The City’s required
contributions for the years ended December 31 were as follows2:
LEOFF Plan 1 LEOFF Plan 2
2014 $396 $549,396
2013 $411 $572,860
2012 $524 $504,331
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, 2014, there were
a total of 11 individuals covered by this system, and 5 of the 11 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
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law for maintaining the Fund. Contributions also include income from state fire insurance
premium collections.
All actuarial calculations are based on RCW 41.16 and 41.18, the statutes establishing the
Firefighter’s Pension Fund, and RCW 41.26, the statute establishing the Washington Law
Enforcement Officers’ and Firefighters’ Retirement System. Benefit provisions are established
in state statute and may be amended only by the State Legislature.
Each retiree receives the greater of the benefit payable under the Washington Law Enforcement
Officers’ and Firefighters’ Retirement System and the benefits available under the provisions
of prior law. Where benefits under the old law exceed those under the new for any firefighter,
the excess benefits are paid from the Firefighter’s Pension Fund of the city employing them on
March 1, 1970.
For a service retirement the member’s benefit is 50% of salary plus an additional 2% for each
year of service in excess of 25 years. The maximum benefit is 60% of salary. The survivor
benefit is the same as the member’s. The spouse is the same plus additional 5% of salary per
child. The maximum benefit in either case is 60% of salary. For a duty disability retirement
the member must be disabled for a six-month waiting period, during which time salary is
payable from the Fund. The amount of the benefit is 50% of salary plus an additional 5% for
each unmarried child under the age of 18. For a non-duty disability retirement the member
must be disabled after a 90-day waiting period, during which time salary is payable from the
Fund. For non-duty related disability the benefit is the same as duty related disability. For
both the duty related and non-duty related disabilities the survivor benefits to spouse and/or
child are as follows:
Percentage of Salary
To Widow Only 33.3%
To Widow and One Child 45.8%
To Widow and Two Children 47.6%
To Widow and Three Children 50.0%
To Children Only 33.33%
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, 2014 was $2,326,321.
Fund expenditures totaled $106,879, of which $102,971 were for pension payments. 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
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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.
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:
NOTE 9: OTHER POST-EMPLOYMENT BENEFITS
LEOFF1 - MEDICAL
2009 2010 2011 2012 2013 2014
Annual Required Contribution (ARC)$0 $0 $0 $0 $0 $0
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
NPO at End of Year $0 $0 $0 $0 $0 $0
Fiscal Year Ended December 31
Firemen's Pension Trust Fund Annual Pension Cost (APC) and Net Pension Obligation (NPO)
ASSETS ADDITIONS
Cash 182,208$ Taxes 51,705$
Investments 2,144,113 Investment earnings:230,735
Total assets 2,326,321 Total additions 282,440
LIABILITIES DEDUCTIONS
Due to Others Pension benefits 102,971
Total liabilities - Administrative expenses 3,908
Total deductions 106,879
NET POSITION
Held in trust for pension benefits Change in net assets 175,561
and other purposes 2,326,321$ Net position - beginning 2,150,760
Net position - ending 2,326,321$
Firemen's Pension Trust Fund Firemen's Pension Trust Fund
December 31, 2014 December 31, 2014
Statement of Net Position Statement of Changes in Net Position
City of Pasco, Washington 2014 Comprehensive Annual Financial
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In addition to the pension benefits outlined in Note 8, Employee Retirement Systems and Pension
Plans, 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’ (LEOFF1) plan retirement system.
Medical Plan Description
As required by the Revised Code of Washington (RCW) Chapter 41.26, the City provides lifetime
medical care for members of the Law Enforcement Officers and Firefighters (LEOFF) retirement
system hired before October 1, 1977 under a defined benefit healthcare plan administered by the
City. The members’ necessary hospital, medical, and nursing care expenses not payable by
worker’s compensation, social security, insurance provided by another employer, or other pension
plan, or any other similar source are covered.
Funding Policy
Pursuant to state statute, the City reimburses 100% of authorized LEOFF1 retiree healthcare costs.
The City pays a monthly insurance premium to cover each r etiree 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.
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 original actuarial accrued liability. Termination and mortality rates were assumed to follow
the LEOFF 1 termination and mortality rates used in the September 30, 200 9 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 LEOFF1 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. 2010 was the first year of implementation
of GASB 45.
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
City of Pasco, Washington 2014 Comprehensive Annual Financial
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79
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. Actuarial assumptions applied using the Office of the State Actuary
valuation tool include the following: a medical inflation rate of 1.0% and a 10 year amortization
period. Additionally, average age and the relative percentages of male to female participants per
selected age groups were also provided to form the basis of the calculations.
The City of Pasco has a total of thirty-four LEOFF 1 members in this plan. Thirty-two of those
members are retired and two are still active employees.
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 empl oyer,
or other pension plan, or any other similar source are covered. Most medical coverage for eligible
LEOFF1 OPEB
2012 2013 2014
Annual required contribution (ARC)$969,799 $934,928 $1,290,122
Interest on Net OPEB Obligation (NOO)51,716 73,793 79,263
Adjustments to ARC (72,637)(207,988)(178,226)
Annual OPEB cost 948,878 800,733 1,191,159
Contributions made 423,901 514,297 649,284
Increase NOO 524,977 286,436 541,875
NOO at Beginning of Year 1,170,172 1,695,149 1,981,585
NOO at End of Year $1,695,149 $1,981,585 $2,523,460
LEOFF1 OPEB
% of
Fiscal Annual Annual Net
Year OPEB OPEB OPEB
Ended Cost Contributed Obligation
12/31/14 $1,191,159 55%$2,523,460
12/31/13 800,733 64%1,981,585
12/31/12 948,878 45%1,695,149
City of Pasco, Washington 2014 Comprehensive Annual Financial
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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.
The City uses the alternative measurement method permitted under GASB Statement No. 45.
Termination and mortality rates were assumed to follow the LEOFF1 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 original 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. 2010 was the first year of implementation of GASB 45.
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. Actuarial
assumptions applied using the Office of the State Actuary valuation tool include the following: a
medical inflation rate of 1.0% and a 10 year amortization period. Additionally, average age and
the relative percentages of male to female participants per selected age groups were also provided
to form the basis of the calculations.
The City of Pasco has a total of 6 LEOFF1 members that are also members of the Old Firemen’s
Pension Plan and are fully funded through the Old Fire Pension Trust Fund. All are retired. Based
on the 2014 in-house evaluation, the Actuarial Accrued Liability for the Fire Pension OPEB Fund
is $1,988,453. As of December 31, 2014, the fund had assets of $2,650,369.
City of Pasco, Washington 2014 Comprehensive Annual Financial
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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:
Following are the financial statements for the Firemen’s Other Post Employment Benefit Trust
Fund:
NOTE 10: 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,
Firemen's OPEB
2012 2013 2014
Annual required contribution (ARC)$0 $0 $0
Interest on Net OPEB Obligation (NOO)0 0 0
Annual OPEB cost 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
Firemen's OPEB
% of
Fiscal Annual Annual Net
Year OPEB OPEB OPEB
Ended Cost Contributed Obligation
12/31/14 $0 N/A $0
12/31/13 0 N/A 0
12/31/12 0 N/A 0
ASSETS ADDITIONS
Cash 83,335$ Investment earnings:259,186$
Investments 2,567,034 Total additions 259,186
Total assets 2,650,369
DEDUCTIONS
LIABILITIES Medical premiums 122,556
Due to Others Administrative expenses 2,982
Total liabilities - Medical premiums 125,538
Total deductions 125,538
NET POSITION
Held in trust for pension benefits Change in net assets 133,648
and other purposes 2,650,369$ Net position - beginning 2,516,721
Net position - ending 2,650,369$
Firemen's Other Post-Employment Benefits Trust Fund Firemen's Other Post Empmloyment Benefit Trust Plan
December 31, 2014 For the Year Ended December 31, 2014
Statement of Net Position Statement of Changes in Net Position
City of Pasco, Washington 2014 Comprehensive Annual Financial
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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 3. F, Long-term Debt, 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.
Currently, there is an underground fire in a non-municipal Pasco landfill which closed in
1998. The Washington State Department of Ecology (DOE) is proposing to issue an enforcement
order to parties collectively known as Potentially Liable Persons (PLPs). The City entered into an
“Institutional Control” agreement with the DOE to regulate development and provide for the
conversion of private water wells located down-plume from the site to be abandoned in favor of
using the City’s municipal water system. It is the City’s understanding that, because of its entering
into this agreement, the DOE is excluding the City from being designated as a PLP. As of
December 31, 2014, the City held investments restricted for the purpose of landfill remediation
with a fair market value of $406,448. In the opinion of management, investments set aside for
landfill remediation are adequate.
City of Pasco, Washington 2014 Comprehensive Annual Financial
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NOTE 11: PRIOR PERIOD CORRECTIONS
NOTE 12: SUBSEQUENT EVENT
On July 14, 2015, the City issued $8,795,000 in General Obligation bonds to provide moneys
that are necessary to pay the cost and expense of constructing for the purpose of building City's
new Police Community Services Center. The bonds bear interest rates from 3.00 to 4.00 percent
interest.
The Statement of Activities reports a net increase
to net position of $2,252,880 as follows:
Governmental Activities
General Fund 1,054,832$
Lodging Fund 11,491
TRAC Fund 15,046
Capital Improvement Fund 188,759
Stadium Convention Center Fund 15,046
1,285,174
Compenated Absences Correction1
General Fund 250,106
Equipment O&M Fund - Governmental 19,534
269,640
1Because compensated absences in the governmental
funds are not reflected in the fund financial statements,
corrections of prior period balances are normally
only reflected in the government-wide financial
statements. However, the Equipment O&M Fund is an
internal service fund, which did reflect the correction.
Business-Type Activities:
Water/Sewer Fund 689,746
Equipment O & M Fund 8,320
698,066
2,252,880$
Governmental Activities
$952,629 increase in the General Fund is due to an
understatement of sales taxes.
$102,202 increase in the General Fund is due to an
understatement of leasehold excise taxes and
brokered gas taxes.
$250,106 increase in Governmental activities is due
to an overstatement of compensated absences
liability
$11,491 increase in the Lodging Fund is due to an
understatement of hotel/motel taxes.
$15,046 increase in both the TRAC and Stadium/
Convention Funds, is due to an understatement of
hotel/motel taxes.
$188,759 increase in the Capital Improvement Fund
is due to an understatement of real estate excise
taxes.
Business-Type Activities
$414,131 increase is due to an overstatement of
interest payable.
$275,615 increase is due to an overstatement of
the compensated absences liability.
$8,320 increase is due to an overstatement of the
compensated absences liability
City of Pasco, Washington 2014 Comprehensive Annual Financial
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The following is a schedule of contributions from the employer and other contributing entities for the
Firemen's Pension Trust Fund:
Annual
Fiscal Actual Fire Actual Required Percentage
Year Insurance Employer Total Contribution of ARC
Ending Premiums Contributions Contributions (ARC)Contributed
12/31/2014 51,705$ -$ 51,705$ -$ N/A
12/31/2013 47,624 - 47,624 - N/A
12/31/2012 42,979 - 42,979 - 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
12/31/2014 2,326$ 1,599$ (727)$ 145%N/A N/A
12/31/2013 2,151 1,599 (552)135%N/A N/A
12/31/2012 1,815 1,599 (216)114%N/A N/A
Schedule of Funding Progress for the Firemen's Pension Fund (rounded to thousands)
Required Supplementary Information
Firemen's Pension Fund
The following is a schedule of contributions from the employer and other contributing entities for the
Firemen's OPEB Trust Fund:
Annual
Fiscal Actual Fire Actual Required Percentage
Year Insurance Employer Total Contribution of ARC
Ending Premiums Contributions Contributions (ARC)Contributed
12/31/2014 -$ -$ -$ -$ N/A
12/31/2013 - - - - N/A
12/31/2012 - - - - 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
12/31/2014 2,650$ 1,988$ (662)$ 133%N/A N/A
12/31/2013 2,517 1,806 (711)139%N/A N/A
12/31/2012 2,075 1,777 (298)117%N/A N/A
Schedule of Funding Progress for the Firemen's OPEB Fund (rounded to thousands)
Required Supplementary Information
Firemen's OPEB Fund
City of Pasco, Washington 2014 Comprehensive Annual Financial
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85
The following is a schedule of contributions from the employer and other contributing entities for the
Other LEOFF1 :
Annual
Fiscal Actual Fire Actual Required Percentage
Year Insurance Employer Total Contribution of ARC
Ending Premiums Contributions Contributions (ARC)Contributed
12/31/2014 -$ 649,284$ 649,284$ 1,290,122$ 50%
12/31/2013 - 514,297 514,297 934,928 55%
12/31/2012 - 423,901 423,901 969,799 44%
Unfunded UAAL As A
Actuarial Actuarial Actuarial Percentage
Asset Accrued Accrued Funded Covered of Covered
Valuation Date Value Liabilities Liabilities (UAAL)Ratio Payroll Payroll
12/31/2014 -$ 14,081$ 14,081$ 0%N/A N/A
12/31/2013 - 9,737 9,737 0%N/A N/A
12/31/2012 - 10,002 10,002 0%N/A N/A
Schedule of Funding Progress for the LEOFF1 OPEB (rounded to thousands)
Required Supplementary Information
LEOFF1 OPEB
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City of Pasco, Washington 2014 Comprehensive Annual Financial
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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 th e 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 gove rnment’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 2014 Comprehensive Annual Financial
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Total Total Cemetery
Nonmajor Nonmajor Perpetual Care Total
Other Special Debt Nonmajor Other
Revenue Service Permanent Governmental
ASSETS
Cash 2,472,279$ 519,698$ 20,244$ 3,012,221$
Investments 13,806,491 900,000 434,309 15,140,800
Prepaid items 5,000 - 5,000
Receivables (net of allowances):
Taxes 491,623 11,365 502,988
Customers 541,741 - 541,741
Interfund loans 887,361 - 887,361
Grants 150,055 - 150,055
Special assessments & loans 148,888 671,547 820,435
Due from other governments 100,000 - 100,000
Total assets 18,603,438 2,102,610 454,553 21,160,601
LIABILITIES
Accounts payable 906,826 68 906,894
Interfund loans payable 2,111,887 539,159 2,651,046
Deposits payable 10,900 - 10,900
Total liabilities 3,029,613 539,227 - 3,568,840
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 227,619 680,551 908,170
FUND BALANCES
Nonspendable
Cemetery permanent fund - - 454,553 454,553
Prepaid items 5,000 - - 5,000
Restricted
Street and boulevard 7,150,098 - - 7,150,098
Litter & housing abatement 369,365 - - 369,365
Park development 1,994,392 - - 1,994,392
Capital improvements 3,732,517 - - 3,732,517
Economic development 48,951 - - 48,951
Geneneral obligation debt - 349,077 - 349,077
Special assessment debt - 64,366 - 64,366
Committed
Special revenue funds 2,030,935 2,030,935
Debt guarantee 925,961 925,961
Unassigned 14,948 (456,572) (441,624)
Total fund balances 15,346,206 882,832 454,553 16,683,591
Total liabilities, deferrend inflows of
resources and fund balances 18,603,438$ 2,102,610$ 454,553$ 21,160,601$
December 31, 2014
Nonmajor Other Governmental Funds
Combining Balance Sheet
City of Pasco, Washington 2014 Comprehensive Annual Financial
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Total Total Cemetery
Nonmajor Nonmajor Perpetual Care Total
Other Special Debt Nonmajor Other
Revenue Service Permanent Governmental
REVENUES
Taxes 3,084,146$ 148,595$ -$ 3,232,741$
Licenses and permits 395,448 395,448
Intergovernmental revenue 3,144,274 3,144,274
Charges for services 6,859,136 19,217 6,878,353
Fines and forfeitures 91,902 91,902
Miscellaneous revenue 2,058,776 278,398 82 2,337,256
Total revenues 15,633,682 426,993 19,299 16,079,974
EXPENDITURES
Current:
Public safety 3,417,410 3,417,410
Transportation 4,674,537 - 4,674,537
Natural and economic environment 2,812,134 2,812,134
Culture and recreation 2,720,765 2,720,765
Capital outlay:
Public safety 16,021 - 16,021
Transportation 58,052 - 58,052
Natural and economic environment 1,350,688 - 1,350,688
Debt service:
Principal 99,310 118,270 217,580
Interest 34,103 53,474 87,577
Total expenditures 15,183,020 171,744 - 15,354,764
Excess of revenues
over (under) expenditures 450,662 255,249 19,299 725,210
OTHER FINANCING SOURCES (USES)
Sale of assets 226,622 - - 226,622
Transfers in 1,985,014 1,985,014
Transfers out (1,866,860) - (1,866,860)
Total other financing sources (uses)344,776 - - 344,776
Net change in fund balances 795,438 255,249 19,299 1,069,986
Prior period adjustments 230,343 - - 230,343
Fund balances - beginning 14,320,425 627,583 435,254 15,383,262
Fund balances - ending 15,346,206$ 882,832$ 454,553$ 16,683,591$
For the Year Ended December 31, 2014
Nonmajor Other Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
City of Pasco, Washington 2014 Comprehensive Annual Financial
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Community
City Arterial I-182 Traffic Street Development
Street Street Impact Overlay Block Grant
ASSETS
Cash 528,863$ 226,966$ 178,431$ 354,421$ (32,743)$
Investments 250,000 1,200,000 1,000,000 2,250,000 -
Prepaid items -
Receivables (net of allowances):
Taxes 164,575 74,062 65,855 -
Customers 86,039 -
Interfund loans -
Grants 43,426 106,205
Special assessments & loans 148,888
Due from other governments -
Total assets 1,072,903 1,501,028 1,178,431 2,670,276 222,350
LIABILITIES
Accounts payable 569,660 20,830 43,509
Interfund loans payable -
Deposits payable -
Total liabilities 569,660 - - 20,830 43,509
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 512 150,812
FUND BALANCES
Nonspendable
Prepaid items
Restricted
Street and boulevard 1,492,776 1,178,431 2,649,446
Litter & housing abatement
Park development
Culture & recreation
Capital improvements
Economic development 28,029
Committed
Special revenue funds 502,731 8,252
Unassigned
Total fund balances 502,731 1,501,028 1,178,431 2,649,446 28,029
Total liabilities, deferrend inflows of
resources and fund balances 1,072,903$ 1,501,028$ 1,178,431$ 2,670,276$ 222,350$
December 31, 2014
Nonmajor Special Revenue Funds
Combining Balance Sheet
City of Pasco, Washington 2014 Comprehensive Annual Financial
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M.L. King
Community Ambulance City View Athletic Golf Senior Multi-Modal
Center Services Cemetery Blvd. Perpetual Program Course Center Facility
54,286$ 85,134$ 104,283$ 41,487$ 173,629$ 93,295$ 19,842$ 128,599$
251,291 900,000
349,096 5,172 597 2,993 2,497 3,814
887,361
424
54,286 685,521 109,455 1,829,445 173,629 96,288 22,763 132,413
1,871 42,998 4,893 16,396 11,174 4,962 2,958
5,150 500 5,250
1,871 42,998 4,893 - 16,396 16,324 5,462 8,208
33,347 42,948
1,829,445
52,415 642,523 71,215 157,233 37,016 17,301 124,205
52,415 642,523 71,215 1,829,445 157,233 37,016 17,301 124,205
54,286$ 685,521$ 109,455$ 1,829,445$ 173,629$ 96,288$ 22,763$ 132,413$
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Rivershore Trail Special
School & Marina Lodging Litter Revolving
Impact Fees Maintenance Assessment Abatement Abatement
ASSETS
Cash 89,244$ 25,954$ 5,725$ 2,061$ 27,803$
Investments 250,000
Prepaid items
Receivables (net of allowances):
Taxes 36,219
Customers 1,563 89,970
Interfund loans
Grants
Special assessments & loans
Due from other governments
Total assets 89,244 25,954 41,944 3,624 367,773
LIABILITIES
Accounts payable 74,296 514 21,022 1,172 860
Interfund loans payable
Deposits payable
Total liabilities 74,296 514 21,022 1,172 860
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
FUND BALANCES
Nonspendable
Prepaid items
Restricted
Street and boulevard
Litter & housing abatement 2,452 366,913
Park development
Culture & recreation
Capital improvements
Economic development 20,922
Committed
Special revenue funds 25,440
Unassigned 14,948
Total fund balances 14,948 25,440 20,922 2,452 366,913
Total liabilities, deferrend inflows of
resources and fund balances 89,244$ 25,954$ 41,944$ 3,624$ 367,773$
December 31, 2014
Nonmajor Special Revenue Funds (continued)
Combining Balance Sheet
City of Pasco, Washington 2014 Comprehensive Annual Financial
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Total
T.R.A.C.Stadium/Nonmajor
Development Park Capital Economic Convention Special
& Operating Development Improvements Development Center Revenue
70,094$ 94,392$ 92,308$ 76,075$ 32,130$ 2,472,279$
1,900,000 3,555,200 1,800,000 450,000 13,806,491
5,000 5,000
A1
32,951 85,009 32,952 491,623
541,741
887,361
150,055
148,888
100,000 100,000
203,045 1,994,392 3,732,517 1,881,075 515,082 18,603,438
A1
A1
89,267 444 906,826
1,639,118 472,769 2,111,887
10,900
- - - 1,728,385 473,213 3,029,613
A1
A1
227,619
5,000 5,000
7,150,098
369,365
1,994,392 1,994,392
-
3,732,517 3,732,517
48,951
A1
203,045 147,690 41,869 2,030,935
14,948
203,045 1,994,392 3,732,517 152,690 41,869 15,346,206
203,045$ 1,994,392$ 3,732,517$ 1,881,075$ 515,082$ 18,603,438$
City of Pasco, Washington 2014 Comprehensive Annual Financial
Report
94
Community
City Arterial I-182 Traffic Street Development
Street Street Impact Overlay Block Grant
REVENUES
Taxes 225,410$ -$ -$ 903,557$ -$
Licenses and permits 395,448 -
Intergovernmental revenue 1,883,279 489,193 448,412
Charges for services 7,650 189,398 -
Fines and forfeitures -
Miscellaneous revenue 63,608 6,798 1,187 3,259 502,238
Total revenues 2,567,745 503,641 190,585 906,816 950,650
EXPENDITURES
Current:
Public safety -
Transportation 3,453,351 16,362 1,129,058 -
Natural and economic environment 630,183
Culture and recreation -
Capital outlay:
Public safety -
Transportation 58,052 -
Natural and economic environment -
Debt service:
Principal -
Interest -
Total expenditures 3,511,403 16,362 - 1,129,058 630,183
Excess of revenues
over (under) expenditures (943,658) 487,279 190,585 (222,242) 320,467
OTHER FINANCING SOURCES (USES)
Sale of assets -
Transfers in 649,294 22,720
Transfers out (399,072) (75,812) (55,214) (282,640)
Total other financing sources (uses)649,294 (399,072) (75,812) (55,214) (259,920)
Net change in fund balances (294,364) 88,207 114,773 (277,456) 60,547
Prior period adjustments - - - -
Fund balances - beginning 797,095 1,412,821 1,063,658 2,926,902 (32,517)
Fund balances - ending 502,731$ 1,501,028$ 1,178,431$ 2,649,446$ 28,029$
For the Year Ended December 31, 2014
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
City of Pasco, Washington 2014 Comprehensive Annual Financial
Report
95
M.L. King
Community Ambulance City View Boulevard Athletic Golf Senior Multi-Modal
Center Services Cemetery Perpetual Program Course Center Facility
-$ -$ -$ -$ -$ -$ -$ -$
1,473 18,493
6,790 3,358,703 257,677 75,755 127,881 1,295,643
34,594 1,191 441 24,683 3,341 275,709 63,201 76,347
41,384 3,361,367 258,118 100,438 131,222 1,571,352 81,694 76,347
3,417,410
11,484 50,205
289,711
160,234 106,458 1,577,548 315,173
16,021
160,234 3,433,431 289,711 11,484 106,458 1,577,548 315,173 50,205
(118,850) (72,064) (31,593) 88,954 24,764 (6,196) (233,479) 26,142
120,000 420,000 30,000 240,000
(135,040) (70,000)
120,000 284,960 30,000 (70,000) - - 240,000 -
1,150 212,896 (1,593) 18,954 24,764 (6,196) 6,521 26,142
- - - - - - - -
51,265 429,627 72,808 1,810,491 132,469 43,212 10,780 98,063
52,415$ 642,523$ 71,215$ 1,829,445$ 157,233$ 37,016$ 17,301$ 124,205$
City of Pasco, Washington 2014 Comprehensive Annual Financial
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Rivershore Trail Special
School & Marina Lodging Litter Revolving
Impact Fees Maintenance Assessment Abatement Abatement
REVENUES
Taxes -$ -$ 254,797$ -$ -$
Licenses and permits
Intergovernmental revenue
Charges for services 1,301,325 5,000 21,667
Fines and forfeitures 91,902
Miscellaneous revenue 108 15,726 10 6,877 2,528
Total revenues 1,301,433 15,726 254,807 11,877 116,097
EXPENDITURES
Current:
Public safety
Transportation 14,077
Natural and economic environment 1,288,185 73,465
Culture and recreation 9,670 248,173
Capital outlay:
Public safety
Transportation
Natural and economic environment
Debt service:
Principal
Interest
Total expenditures 1,288,185 9,670 248,173 14,077 73,465
Excess of revenues
over (under) expenditures 13,248 6,056 6,634 (2,200) 42,632
OTHER FINANCING SOURCES (USES)
Sale of assets
Transfers in
Transfers out
Total other financing sources (uses)- - - - -
Net change in fund balances 13,248 6,056 6,634 (2,200) 42,632
Prior period adjustments - - 11,491 - -
Fund balances - beginning 1,700 19,384 2,797 4,652 324,281
Fund balances - ending 14,948$ 25,440$ 20,922$ 2,452$ 366,913$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2014
Nonmajor Special Revenue Funds (continued)
City of Pasco, Washington 2014 Comprehensive Annual Financial
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Total
T.R.A.C.Nonmajor
Development Park Capital Economic Stadium/Special
& Operating Development Improvement Development Conv. Center Revenue
251,069$ -$ 1,198,244$ -$ 251,069$ 3,084,146$
395,448
303,425 3,144,274
211,647 6,859,136
91,902
238 1,918 (8,556) 952,322 31,009 2,058,776
251,307 213,565 1,189,688 1,255,747 282,078 15,633,682
3,417,410
4,674,537
398,069 132,521 2,812,134
264,574 14,001 24,934 2,720,765
16,021
58,052
1,350,688 1,350,688
99,310 99,310
4,818 11,810 17,475 34,103
368,702 14,001 - 1,760,567 174,930 15,183,020
(117,395) 199,564 1,189,688 (504,820) 107,148 450,662
226,622 226,622
103,000 400,000 1,985,014
(26,985) (622,097) (200,000) (1,866,860)
103,000 (26,985) (622,097) 26,622 400,000 344,776
(14,395) 172,579 567,591 (478,198) 507,148 795,438
15,046 - 188,759 - 15,046 230,343
202,394 1,821,813 2,976,167 630,888 (480,325) 14,320,425
203,045$ 1,994,392$ 3,732,517$ 152,690$ 41,869$ 15,346,206$
City of Pasco, Washington 2014 Comprehensive Annual Financial
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Local Total
1999 Library/2002 Improvement Nonmajor
LID LID Fire Station Unl. Tax G.O.District Debt
Loans Bonds Bonds Refunding Bonds Guaranty Service
ASSETS
Cash B9 82,587$ 64,434$ 100,146$ 246,570$ 25,961$ 519,698$
Investments - 900,000 900,000
Prepaid items - -
Receivables (net of allowances):
Taxes - 5,370 5,995 11,365
Customers - -
Interfund loans - -
Grants - -
Special assessments & loans B9 524,402 145,332 1,813 671,547
Due from other governments -
Total assets 606,989 209,766 105,516 252,565 927,774 2,102,610
LIABILITIES
Accounts payable - 68 68
Interfund loans payable B9 539,159 539,159
Deposits payable - -
Total liabilities 539,159 68 - - - 539,227
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues B9 524,402 145,332 3,908 5,096 1,813 680,551
FUND BALANCES
Restricted
Geneneral obligation debt - 101,608 247,469 349,077
Special assessment debt - 64,366 64,366
Committed -
Debt guarantee - 925,961 925,961
Unassigned (456,572) (456,572)
Total fund balances B9 (456,572) 64,366 101,608 247,469 925,961 882,832
Total liabilities, deferrend inflows of
resources and fund balances A34 606,989$ 209,766$ 105,516$ 252,565$ 927,774$ 2,102,610$
December 31, 2014
Nonmajor Debt Service Funds
Combining Balance Sheet
City of Pasco, Washington 2014 Comprehensive Annual Financial
Report
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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 -$ -$ 136,528$ 12,067$ -$ 148,595$
Miscellaneous revenue 246,186 30,223 52 82 1,855 278,398
Total revenues 246,186 30,223 136,580 12,149 1,855 426,993
EXPENDITURES
Debt service:
Principal 18,270 100,000 118,270
Interest 11,252 9,072 33,150 53,474
Total expenditures 29,522 9,072 133,150 - - 171,744
Excess of revenues
over (under) expenditures 216,664 21,151 3,430 12,149 1,855 255,249
Net change in fund balances 216,664 21,151 3,430 12,149 1,855 255,249
Fund balances - beginning (673,236) 43,215 98,178 235,320 924,106 627,583
Fund balances - ending (456,572)$ 64,366$ 101,608$ 247,469$ 925,961$ 882,832$
For the Year Ended December 31, 2014
Nonmajor Debt Service Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
City of Pasco, Washington 2014 Comprehensive Annual Financial
Report
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Original Final Variance to
Budget Budget Actual Final Budget
REVENUES
Intergovernmental revenue 3,325,110$ 3,325,110$ 1,762,499$ (1,562,611)$
Miscellaneous revenue 118,500 118,500
Total revenues 3,325,110 3,325,110 1,880,999 (1,444,111)
EXPENDITURES
Current:
General government 318,837 46,520 272,317
Capital outlay:
General government 344,732 489,446 506,044 (16,598)
Public safety 145,000 709,214 175,080 534,134
Transportation 7,603,592 7,915,785 2,793,633 5,122,152
Natural & economic environment 203,000 203,000
Culture and recreation 1,103,000 1,188,294 202,251 986,043
Total expenditures 9,196,324 10,824,576 3,723,528 7,101,048
Excess of revenues over (under) expenditures (5,871,214) (7,499,466) (1,842,529) 5,656,937
OTHER FINANCING SOURCES
Transfers in 5,767,106 7,395,358 1,677,116 5,718,242
Total other financing sources 5,767,106 7,395,358 1,677,116 5,718,242
Net change in fund balances (104,108) (104,108) (165,413) (61,305)
Fund balances - beginning 141,854 141,854 198,774 56,920
Fund balances - ending 37,746$ 37,746$ 33,361$ (4,385)$
CONSTRUCTION FUND
Statement of Revenues, Expenditures, and Changes in Fund Balances-Budget to Actual
Construction Fund - Major Fund
For the Year Ended December 31, 2014
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Final Variance to Final Variance to
Budget Actual Final Budget Budget Actual Final Budget
Special Revenue Funds
City Street Fund 3,093,300$ 3,217,038$ 123,738$ 3,569,809$ 3,511,403$ (58,406)$
Arterial Street Fund 461,925 503,641 41,716 415,572 415,434 (138)
I-82 Traffic Impact Fund 201,020 190,586 (10,434) 465,424 75,812 (389,612)
Street Overlay Fund 912,000 906,816 (5,184) 1,347,529 1,184,272 (163,257)
Community Dev Block Grant Fund 1,366,044 973,368 (392,676) 1,234,831 912,823 (322,008)
ML King Community Center Fund 154,300 161,384 7,084 160,738 160,234 (504)
Ambulance Services Fund 3,740,762 3,781,368 40,606 3,908,607 3,568,471 (340,136)
City View Cemetery Fund 272,720 288,118 15,398 297,679 289,711 (7,968)
Blvd Perpetual Maintenance Fund 212,387 100,439 (111,948) 504,592 81,484 (423,108)
Athletic Program Fund 151,650 131,222 (20,428) 127,227 106,458 (20,769)
Golf Course 1,543,955 1,571,353 27,398 1,505,164 1,577,547 72,383
Senior Center Fund 340,650 321,696 (18,954) 338,895 315,173 (23,722)
Multi-Modal Fund 67,985 76,348 8,363 49,368 50,205 837
School Impact Fees 1,500,100 1,301,433 (198,667) 1,500,000 1,288,185 (211,815)
Rivershore Trail & Marina Fund 14,400 15,726 1,326 13,907 9,670 (4,237)
Special Lodging Assess Fund 241,209 254,807 13,598 244,006 248,173 4,167
Litter Abatement Fund 17,500 11,877 (5,623) 15,860 14,077 (1,783)
Revolving Abatement Fund 97,225 116,097 18,872 63,817 73,465 9,648
TRAC Develop & Operating Fund 348,130 354,307 6,177 472,127 368,702 (103,425)
Park Development Fund 191,200 213,564 22,364 280,000 40,986 (239,014)
Capital Improvement Fund 1,202,000 1,189,688 (12,312) 2,672,575 622,097 (2,050,478)
Economic Development Fund 2,829,000 1,482,369 (1,346,631) 2,285,286 1,960,567 (324,719)
Stadium/Convention Ctr Fund 718,300 682,076 (36,224) 285,027 174,930 (110,097)
Total 19,677,762 17,845,321 (1,832,441) 21,758,040 17,049,879 (4,708,161)
Debt Service Funds
LID Loans 238,764 246,185 7,421 167,953 29,523 (138,430)
LID Bonds 107,740 30,223 (77,517) 7,800 9,072 1,272
Library/Fire Station Bonds 138,675 136,580 (2,095) 133,500 133,150 (350)
2002 UTGO Bonds - 12,149 12,149 350 - (350)
LID Guarantee 1,800 1,854 54 100,000 - (100,000)
Total 486,979 426,991 (59,988) 409,603 171,745 (237,858)
Permanent Funds
Cemetery Perpetual Care 16,677 19,299 2,622 - - -
Total 16,677$ 19,299$ 2,622$ -$ -$ -$
Schedule of Revenues and Expenditures - Budget to Actual
For the Year Ended December 31, 2014
Nonmajor Other Governmental Funds
Revenues Expenditures
City of Pasco, Washington 2014 Comprehensive Annual Financial
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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 2014 Comprehensive Annual Financial Report
103
Medical/
Equipment Equipment Dental EquipmentEquipmentEquipment Total
Rental Rental Insurance Central Rental Rental Internal
Operations Replacement Fund Stores Operations Replacement Service
ASSETS
Current assets:
Current cash & cash equivalents 53,200$ 237,871$ 133,105$ 12,858$ 208,592$ 198,386$ 844,012$
Investments 3,085,026 1,400,000 1,900,000 6,385,026
Interfund loans - current portion 487,457 - 487,457
Total current assets 53,200 3,810,354 1,533,105 12,858 208,592 2,098,386 7,716,495
Noncurrent assets:
Interfund loans 1,037,110 - 1,037,110
Construct work in process 212,450 - 212,450
Machinery and equipment 3,550,477 - 1,605,237 5,155,714
Total noncurrent assets - 4,800,037 - - - 1,605,237 6,405,274
Total assets 53,200 8,610,391 1,533,105 12,858 208,592 3,703,623 14,121,769
LIABILITIES
Current liabilities:
Accounts payable 24,714 21,115 1,858 7,868 55,555
IBNR payable from restricted assets 449,291 449,291
Total current liabilities 24,714 21,115 451,149 - 7,868 - 504,846
Total liabilities 24,714 21,115 451,149 - 7,868 - 504,846
NET POSITION
Net investment in capital assets 3,762,927 - 1,605,237 5,368,164
Unrestricted 28,486 4,826,349 1,081,956 12,858 200,724 2,098,386 8,248,759
Total net position 28,486$ 8,589,276$ 1,081,956$ 12,858$ 200,724$ 3,703,623$ 13,616,923$
Business-Type ActivitiesGovernmental Activities
Combining Statement of Net Position
Nonmajor Internal Services Fund
December 31, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
104
Equipment Equipment Medical/Dental Equipment Equipment Total
Rental Rental Insurance Central Rental Rental Internal
Operations Replacement Fund Stores Operations Replacement Service
OPERATING REVENUES
Charges for goods and services -$ -$ 5,687,187$ -$ -$ -$ 5,687,187$
Miscellaneous interfund charges 969,390 1,006,690 1,277 337,202 500,845 2,815,404
Total operating revenues 969,390 1,006,690 5,688,464 - 337,202 500,845 8,502,591
OPERATING EXPENSES
Depreciation 461,178 - 227,925 689,103
Salaries & wages 239,377 - 59,148 298,525
Personnel benefits 104,781 - 24,426 129,207
Supplies 556,092 15,824 - 215,694 787,610
Services 147,997 4,750,759 36,189 4,934,945
Total operating expenses 1,048,247 477,002 4,750,759 - 335,457 227,925 6,839,390
OPERATING INCOME (LOSS)(78,857) 529,688 937,705 - 1,745 272,920 1,663,201
NONOPERATING REVENUES (EXPENSES)
Investment income 15,262 - 12 256 2,544 18,074
Loss on sale of capital assets (11,596) (5,332) (16,928)
Total nonoperating revenues - 3,666 - 12 256 (2,788) 1,146
Income (loss) before contributions and
transfers (78,857) 533,354 937,705 12 2,001 270,132 1,664,347
Capital contributions -
Transfers in 392,850 392,850
Changes in net position (78,857) 926,204 937,705 12 2,001 270,132 2,057,197
Prior period adjustments 19,534 - - - 8,320 - 27,854
Net position - beginning 87,809 7,663,072 144,251 12,846 190,403 3,433,491 11,531,872
Net position - ending 28,486$ 8,589,276$ 1,081,956$ 12,858$ 200,724$ 3,703,623$ 13,616,923$
Governmental Activities
Combining Statement of Revenues, Expenses, and Changes in Net Position
Nonmajor Internal Service Funds
For the Year Ended December 31, 2014
Business-Type Activities
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
105
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 969,390$ 1,006,690$ 5,688,464$ -$ 337,202$ 500,845$ 8,502,591$
Payments to employees (363,692) - - - (91,894) - (455,586)
Payments to suppliers (703,580) 5,291 (4,929,996) - (253,075) (92,911) (5,974,271)
Net cash provided by operating activities (97,882) 1,011,981 758,468 - (7,767) 407,934 2,072,734
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Prior Year Adjustments 19,534 - - - 8,320 - 27,854
19,534 - - - 8,320 - 27,854
CASH FLOW FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Loss from disposal of assets (10,650) (10,650)
Transfers in for capital 392,850 - 392,850
Acquisition of capital assets - (1,373,036) - - - (647,710) (2,020,746)
Net cash used in capital activities - (990,836) - - - (647,710) (1,638,546)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment sales and income - (3,513,331) (850,570) 12 256 (1,897,456) (6,261,089)
Interfund loans - (891,606) - - - - (891,606)
Net cash provided from investing activities - (4,404,937) (850,570) 12 256 (1,897,456) (7,152,695)
Net increase in cash (78,348) (4,383,792) (92,102) 12 809 (2,137,232) (6,690,653)
Beginning cash 131,548 4,621,663 225,207 12,846 207,783 2,335,618 7,534,665
Ending cash 53,200$ 237,871$ 133,105$ 12,858$ 208,592$ 198,386$ 844,012$
CASH PROVIDED BY OPERATING
ACTIVITIES:
Net operating income (loss)(78,857)$ 529,688$ 937,705$ -$ 1,745$ 272,920$ 1,663,201$
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
Depreciation - 461,178 - - - 227,925 689,103
Increase (decrease) in accounts payable 509 21,115 (179,237) - (1,192) (92,911) (251,716)
Increase (decrease) in compensated absences (19,534) - - - (8,320) - (27,854)
Net cash provided by operating activities (97,882)$ 1,011,981$ 758,468$ -$ (7,767)$ 407,934$ 2,072,734$
Combining Statement of Cash Flows
Nonmajor Internal Service Funds
For the Year Ended December 31, 2014
Governmental Activities Business-Type Activities
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
106
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 2014 Comprehensive Annual Financial Report
107
Total
Firemen's Other Pension and Other
Firemen's Post-Employment Post-Employment
Pension Benefits Benefits
ASSETS
Cash 182,208$ 83,335$ 265,543$
Investments 2,144,113 2,567,034 4,711,147
Total assets 2,326,321 2,650,369 4,976,690
LIABILITIES
Due to Others -
Total liabilities - - -
NET POSITION
Held in trust for pension benefits
and other purposes 2,326,321$ 2,650,369$ 4,976,690$
Combining Statement of Net Position
Fiduciary Funds
December 31, 2014
Trust Funds
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
108
Public Animal
Flexible Facility Control Payroll Total
Spending District Authority Clearing Agency
ASSETS
Cash & cash equivalents (11,091)$ 80,193$ 47,807$ 18,265$ 135,174$
Total assets (11,091) 80,193 47,807 18,265 135,174
LIABILITIES
Accounts payable (11,090) 18,264 7,174
Due to other governments 80,193 47,807 128,000
Total liabilities (11,090)$ 80,193$ 47,807$ 18,264$ 135,174$
Agency Funds
Combining Statement of Assets and Liabilities
Fiduciary Funds (continued)
December 31, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
109
Total
Firemen's Other Pension and Other
Firemen's Post-Employment Post-Employment
Pension Benefits Benefits
ADDITIONS
Taxes 51,705$ -$ 51,705$
Investment earnings 230,735 259,186 489,921
Total additions 282,440 259,186 541,626
DEDUCTIONS
Pension benefits 102,971 102,971
Medical premiums 122,556 122,556
Administrative expenses 3,908 2,982 6,890
Total deductions 106,879 125,538 232,417
Change in net assets 175,561 133,648 309,209
Net position - beginning 2,150,760 2,516,721 4,667,481
Net position - ending 2,326,321$ 2,650,369$ 4,976,690$
Combining Statement of Changes in Net Position
Fiduciary Funds
For The Year Ended December 31, 2014
Trust Funds
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
110
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
ASSETS
Cash & cash equivalents 7,850$ 156,301$ 175,242$ (11,091)$ 78,439$ 23,249$ 21,495$ 80,193$
Total assets 7,850 156,301 175,242 (11,091) 78,439 23,249 21,495 80,193
LIABILITIES
Accounts payable 7,850 157,096 176,036 (11,090) -
Due to other governments - 78,439 31,089 29,335 80,193
Total liabilities 7,850$ 157,096$ 176,036$ (11,090)$ 78,439$ 31,089$ 29,335$ 80,193$
Pasco Public Facility DistrictFlexible Spending Accounts
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended December 31, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
111
Animal Control Authority Payroll Clearing Total Agency Funds
Balance Balance Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
102,570$ 247,159$ 301,922$ 47,807$ 421,270$ 26,919,518$ 27,322,523$ 18,265$ 610,129$ 27,346,227$ 27,821,182$ 135,174$
102,570 247,159 301,922 47,807 421,270 26,919,518 27,322,523 18,265 610,129 27,346,227 27,821,182 135,174
- 421,270 29,846,060 30,249,066 18,264 429,120 30,003,156 30,425,102 7,174
102,570 316,597 371,360 47,807 181,009 347,686 400,695 128,000
102,570$ 316,597$ 371,360$ 47,807$ 421,270$ 29,846,060$ 30,249,066$ 18,264$ 610,129$ 30,350,842$ 30,825,797$ 135,174$
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
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City of Pasco, Washington 2014 Comprehensive Annual Financial Report
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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 114
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 120
These schedules contain information to help the reader assess the governments
most significant revenue sources.
Debt Capacity 126
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 130
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 134
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 2014 Comprehensive Annual Financial Report
114
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmental activities
Net investment in capital assets $47,804 $59,050 $74,058 $85,294 $97,602 $122,343 $141,497 $163,582 $188,996 $185,424
Restricted for:
Restricted *5,734 5,738 3,941 4,005 3,551 383 400
Cemetery (nonexpendable) 418 434 455
Prepaids 141
Contested tax & drug forefits 228 57
Bicentennial celebration 6
Streets and boulevards 6,489 7,205 7,150
Litter and housing abatement 289 329 369
Park development 1,739 1,821 1,994
Culture and recreation 133
Capital improvement 2,259 2,976 3,733
Economic development 221 3 49
General obligation debt 337 334 349
Special assessment debt 240 48 64
Unrestricted 15,366 15,944 22,710 23,750 24,111 28,241 30,166 14,616 11,883 15,934
Total governmental activities net position 68,904 80,732 100,709 113,049 125,264 150,967 172,063 190,196 214,390 215,719
Business-type activities
Net investment capital assets 69,646 93,667 97,635 109,736 113,994 124,771 129,532 130,321 129,664 137,088
Restricted 1,321 1,798 842 747 777 - - 10,841
Unrestricted 23,041 6,252 12,611 5,712 12,618 11,400 12,367 14,719 19,115 4,274
Total business-type activities net position 94,008 101,717 111,088 116,195 127,389 136,171 141,899 145,040 148,779 152,203
Primary government
Net investment in capital assets 117,450 152,717 171,694 195,030 211,596 247,114 271,029 293,903 318,660 322,512
Restricted 7,055 7,536 4,783 4,752 4,328 383 400 11,998 13,511 14,361
Unrestricted 38,407 22,196 35,321 29,462 36,729 39,641 42,533 29,335 30,998 20,208
Total primary government net assets $162,912 $182,449 $211,798 $229,244 $252,653 $287,138 $313,962 $335,236 $363,169 $357,081
* 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 2014 Comprehensive Annual Financial Report
115
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Expenses
Governmental activities:
General government $8,116 $8,889 $9,649 $10,410 $12,059 $6,921 $6,517 $6,730 $7,060 $8,092
Public safety 14,004 16,592 17,214 18,296 18,743 19,419 19,834 20,498 22,491 21,624
Physical environment 1,690 2,319 2,137 3,532 3,050 1,900 2,406 2,992
Transportation 5,944 1,299 4,242 4,331 5,137 7,831 9,836 9,913 14,097 16,728
Economic environment 934 1,647 1,117 1,199 1,385 797 1,041 2,386 4,456 4,710
Health and human services 45 44 40 57 59 1,652 251 421
Culture and recreation 4,893 4,872 5,713 5,983 6,212 4,724 7,695 8,224 8,003 7,941
Interest on long term debt 714 682 640 587 413 512 517 315 265 210
Total governmental activities expenses 36,340 36,344 40,752 44,395 47,058 43,756 48,097 51,479 56,372 59,305
Business-type activities
Water 3,950 5,051 5,180 5,990 6,029 6,538 6,845 6,748 7,780 8,238
Sewer 5,878 5,724 6,275 6,316 6,826 6,944 7,922 7,435 7,223 7,902
Water process reuse 1,466 1,558 1,503 1,569 1,558 1,444 1,501 1,185 1,542 1,848
Storm water 377 518 595 607 735 791 959 1,028 1,165 1,288
Irrigation 544 748 936 1,015 1,009 1,045 1,038 1,099 1,226 1,546
Total business-type activities expenses 12,215 13,599 14,489 15,497 16,157 16,762 18,265 17,495 18,936 20,822
Total primary government expenses 48,555 49,943 55,241 59,892 63,215 60,518 66,362 68,974 75,308 80,127
Program revenues
Governmental Activities:
Charges for Services
General government 4,885 5,529 7,098 6,667 8,982 2,134 1,981 2,575 4,578 5,083
Public safety 1,784 1,862 2,263 2,626 3,006 3,684 3,893 4,415 4,398 5,144
Physical environment 675 798 744 836 1,282 499 1,331 1,406
Transportation 45 810 491 476 623 1,504 1,795 310 3,507 4,203
National & economic environment 1,961 1,780 1,579 1,135 1,431 17 1,459 2,734 3,361 3,172
Health and human services 1,851 30 14
Culture and recreation 744 583 465 445 480 604 2,161 1,838 2,471 2,334
Operating grants and contributions 1,199 1,045 1,074 376 504 1,448 1,763 1,043 639 1,702
Capital grants and contributions 6,547 9,244 3,438 14,753 13,283 25,488 25,117 16,144 30,631 4,302
Total governmental activities program revenues 17,840 21,651 17,152 27,314 29,591 37,229 39,530 30,479 49,585 25,940
Business-type activities
Charges for services 13,112 14,186 14,307 17,232 18,319 18,148 17,774 18,044 17,977 20,002
Operating grants and contributions 0 0 0 0 0 0 370 412 42 23
Capital grants and contributions 14,203 3,625 6,377 3,254 3,061 4,654 5,671 5,586 4,214 3,344
Total business-type activities program revenues 27,315 17,811 20,684 20,486 21,380 22,802 23,815 24,042 22,233 23,369
Total primary government program revenues $45,155 $39,462 $37,836 $47,800 $50,971 $60,031 $63,345 $54,521 $71,818 $49,309
(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 2014 Comprehensive Annual Financial Report
116
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Net (expenses)/revenues
Governmental activities ($18,500)($14,693)($23,599)($17,078)($17,467)($6,527)($8,567)($21,000)($6,787)($33,365)
Business-type activities 15,100 4,212 6,195 4,504 5,223 6,040 5,550 6,547 3,297 2,547
Total primary government (3,400)(10,481)(17,404)(12,574)(12,244)(487)(3,017)(14,453)(3,490)(30,818)
General revenues and other changes in net assets
Governmental Activities:
Taxes
Property taxes 4,883 5,303 5,774 6,055 6,276 6,080 6,847 6,658 7,149 7,069
Sales and use taxes 7,857 8,226 8,646 8,843 8,000 8,245 9,403 10,284 11,472 12,695
Occupational utility taxes 7,100 7,561 7,842 8,689 8,924 8,917 8,914 8,843 8,894 9,592
Other taxes 3,396 3,305 3,729 4,655 4,686 1,738 1,838 2,046 2,117 2,290
Intergovernmental *1,663 2,599 3,161 1,566 1,581
Investment and miscellaneous 3,365 2,412 2,892 987 852 1,147 691 1,486 137 62
Transfers (584)113 846 613 566 (149)3,439 (355)(150)
Total governmental activities 26,017 26,920 29,729 29,842 29,304 27,641 30,292 35,917 30,980 33,139
Business-type activities
Investment and miscellaneous 4,120 3,758 4,184 425 399 1,062 177 33 88 29
Transfers (58)(183)(866)(613)(566)149 (3,439)355 150
Total business-type activities 4,062 3,575 3,318 (188)(167)1,211 177 (3,406)443 179
Total primary government 30,079 30,495 33,047 29,654 29,137 28,852 30,469 32,511 31,423 33,318
Changes in net position
Governmental activities 7,517 12,227 6,130 12,764 11,837 21,114 21,725 14,917 24,193 (226)
Business-type activities 19,162 7,787 9,513 4,316 5,056 7,251 5,727 3,141 3,740 2,726
Total primary government $26,679 $20,014 $15,643 $17,080 $16,893 $28,365 $27,452 $18,058 $27,933 $2,500
*Included with "Other taxes" until 2010.
Fiscal Year Ended December 31
Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
117
Fiscal Year
Ended
December 31
Property
Taxes
Sales and
Use Taxes B&O Taxes
Excise and Other
Taxes Total Taxes
2004 4,699$ 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
2014 7,069 12,695 9,592 2,290 31,646
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 2014 Comprehensive Annual Financial Report
118
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General fund
Assigned -$ -$ -$ -$ -$ -$ 3,208$ -$ -$ -$
Restricted
Prepaids 136
Bi-centennial celebration 6
Law Enforcement 228 57
Committed
Landfill claims 401 405 406
Assigned
Subsequent year's budget appropriation 2,872 806
Unassigned 8,050 6,264 5,612 7,978
Reserved *59 1,891 1,517 692 1,898
Unreserved *9,109 6,861 9,088 10,270 7,917 9,414
Total general fund 9,168$ 8,752$ 10,605$ 10,962$ 9,815$ 9,414$ 11,258$ 9,543$ 6,245$ 9,383$
All other governmental funds
Nonspendable
Cemetery permanent fund -$ -$ -$ -$ -$ -$ 400$ 418$ 434$ 455$
Restricted 9,496 5
Street and boulevard**6,489 7,205 7,150
Litter & housing abatement**288 329 369
Park development**1,739 1,822 1,995
Culture and recreation 132
Capital improvements**2,260 2,976 3,733
Economic development**221 3 49
General obligation debt**337 334 349
Special assessment debt**240 47 64
Committed 5,375
Special revenue funds*1,117 2,365 2,031
Construction projects*861 199 33
Debt guarantee*1,033 924 926
Unassigned (178) (1,254) (1,188) (442)
Reserved *5,728 5,729 3,910 3,890 2,798 383
Unreserved, reported in:
Special revenue funds 4,912 6,115 8,260 9,872 9,010 10,846
Debt service funds 281 671 773 921 1,307 1,095
Capital project funds (440) (1,158) (224) (1,750) (655) 833
Total all other governmental funds 10,481$ 11,357$ 12,719$ 12,933$ 12,460$ 13,157$ 15,093$ 13,749$ 15,582$ 16,717$
* Prior to GASB 54
*'* Break out not available prior to 2012
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 2014 Comprehensive Annual Financial Report
119
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenue
Taxes 22,196$ 23,362$ 24,516$ 25,716$ 25,339$ 24,960$ 26,832$ 28,017$ 29,602$ 31,756$
Licenses and permits 2,338 2,116 1,924 1,616 1,860 1,966 1,874 1,862 1,777 1,983
Intergovernmental revenue 3,494 10,802 4,719 5,293 4,041 7,929 8,252 4,901 5,785 6,868
Charges for services 4,226 4,388 4,738 4,771 5,285 5,502 7,475 9,509 11,486 12,562
Fines and forfeitures 746 829 1,054 1,017 1,063 944 955 891 985 961
Investment and miscellaneous 3,075 2,803 2,734 2,310 2,963 2,930 2,547 2,767 2,559 3,146
Total revenues 36,075 44,300 39,685 40,723 40,551 44,231 47,935 47,947 52,194 57,276
Expenditures
Current:
General government 4,817 5,026 5,001 5,341 5,847 6,547 6,087 6,381 6,705 7,720
Public safety 13,588 15,593 16,820 17,711 18,418 18,820 18,780 19,990 22,365 22,110
Physical environment 1,444 1,609 1,825 2,078 2,066 1,855 2,288 2,846
Transportation 1,104 1,133 1,537 1,536 1,566 2,149 2,447 2,890 3,897 6,344
Natural and economic enviroment 648 681 745 671 944 54 872 2,137 4,287 4,568
Health and human services 45 44 40 57 59 1,313 210 376
Culture and recreation 3,464 3,827 4,117 4,279 4,670 4,757 6,402 6,807 6,978 7,153
Capital outlay *8,222 14,188 5,737 7,345 7,718
General government 104 154 193 1,426 506
Public safety 124 35 648 2,726 258
Physical environment 868 7
Transportation 3,441 3,276 3,141 2,994 2,852
Natural and economic enviroment 419 657 1,527 254 1,351
Culture and recreation 2,633 369 185 225
Debt service:
Principal 1,106 1,120 1,162 1,108 1,249 1,178 1,575 3,308 1,194 675
Interest 714 682 640 587 413 512 517 316 265 210
Total expenditures 35,152 43,903 37,624 40,713 42,950 44,774 43,669 50,752 53,091 53,972
Excess of revenues
over (under) expenditures 923 397 2,061 10 (2,399) (543) 4,266 (2,805) (897) 3,304
Other financing sources (uses)
Disposition of capital assets 41 157 7 227
Proceeds of general debt 795 4,533
Debt refinanced (4,280)
Insurance recoveries 30 1 251 (1)
Transfer in 5,322 5,864 4,984 5,094 5,432 6,559 5,229 6,434 7,029 3,800
Transfer out (6,068) (5,710) (4,247) (4,542) (4,527) (6,708) (5,229) (6,689) (7,596) (4,343)
Total other financing sources (uses)(675) 155 894 559 1,156 645 253 (255) (567) (316)
Net change in fund balances 248$ 552$ 2,955$ 569$ (1,243)$ 102$ 4,519$ (3,060)$ (1,464)$ 2,988$
Debt services as percentage
of noncapital expenditures 6.8%6.1%5.7%5.1%4.7%4.5%5.4%7.8%3.0%1.8%
* Breakout 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 2014 Comprehensive Annual Financial Report
120
Fiscal Year
Ended
December 31
Residential
Property
Commercial
Property
Other
Property
Total Taxable
Assessed
Valuation
Total
Direct Tax
Rate
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
2014 2,455,759 833,089 192,151 3,480,999 2.00
Source: Franklin County Assessor
Real Property
Assessed Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
121
Fiscal Year
Ended
December 31 Admissions Cable TV Solid Waste Water Irrigation *Sewer Storm **Reuse **Gas Telephone Electricity Total
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
2014 158 516 573 782 107 665 108 186 790 1,839 4,026 9,750
* 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
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
2014 1.956 0.045 2.001 1.352 0.135 1.487 4.314 2.528 6.842 0.323 10.653
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 2014 Comprehensive Annual Financial Report
122
Fiscal Year
Ended
December 31 City of Pasco 1 Franklin County 1
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 933,301,814 1,110,257,463
2014 1,016,794,531 1,196,017,085
1 Source: Washington State Department of Revenue
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 $36,442 1 0.98%
Pasco Processing LLC 29,574 2 0.80%31,316 1 1.09%
Grimmway Enterprises Inc 27,821 3 0.75%
Twin City Foods, Inc.21,360 4 0.57%22,098 2 0.77%
Bybee Foods LLC 20,981 5 0.56%
The Crossing at Chapel Hill 16,174 6 0.44%16,085 4 0.56%
Broadmoor LLC 15,382 7 0.41%16,432 3 0.57%
Wal-Mart, Inc 14,056 8 0.38%13,745 6 0.48%
Reser's Fine Foods, Inc 13,662 9 0.37%
Kenyon Zero Storage 12,998 10 0.35%
Western State Equipment 14,400 5 0.50%
Skywest Airlines, Inc 13,241 7 0.46%
Conagra Foods Lamb-Weston, Inc.12,632 8 0.44%
BNSF Railway Co.12,255 9 0.43%
Old Standard Life Insurance 11,234 10 0.39%
$208,450 5.61%$163,438 5.69%
Source: Franklin County Assessor's Office
2014 2008
Principal Property Taxpayers
Current Year and Six Years Prior
(amounts expressed in thousands)
Fiscal Year Ended December 31
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
123
Taxpayer
Tax
Revenue Rank
Percentage of
Total Tax
Revenue
Tax
Revenue Rank
Percentage
of Total Tax
Revenue
Company A $4,026 1 47.71%$2,586 1 39.71%
Company B 790 2 9.36%407 3 6.25%
Company D 573 3 6.79%388 4 5.96%
Company E 516 4 6.11%341 5 5.24%
Company C 440 5 5.21%
Company F 421 6 4.99%
Company G 242 7 2.87%477 2 7.32%
Company J 164 8 1.94%109 8 1.67%
Company N 109 9 1.29%
Company I 98 10 1.16%139 7 2.13%
Company K 302 6 4.64%
Company L 73 9 1.12%
Company M 71 10 1.09%
$7,379 87.43%$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.
Source: Revenue collection
Principal B&O Taxpayers
Current Year and Ten Years Prior
(amounts expressed in thousands)
2004
Fiscal Year Ended December 31
2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
124
2014 2006
Sales % of Sales % of
Tax Total Tax Total
Industries Paid Rank Sales Tax Paid Rank Sales Tax
Motor vehicle and parts dealers $2,108,995 1 22.21%$1,553,185 1 20.95%
Merchant wholesale, durable goods 728,803 2 7.68%776,944 2 10.48%
Construction of buildings 722,589 3 7.60%421,800 4 5.69%
Food services, drinking places 593,273 4 6.25%338,591 8 4.57%
General merchandise stores 556,239 5 5.86%408,218 5 5.51%
Specialty trade contractors 535,016 6 5.63%628,960 3 8.48%
Building material and garden 383,370 7 4.04%249,406 9 3.36%
Rail Transportation 326,183 8 3.44%0.00%
Rental and leasing services 295,127 9 3.11%357,386 7 4.82%
Telecommunications 255,123 10 2.69%200,425 10 2.70%
Miscellaneous store retailers 381,601 6 5.15%
Other 2,991,045 31.51%2,097,093 28.29%
Total $9,495,763 100.02%7,413,609$ 100.00%
Source: Washington State Department of Revenue
Top Ten Industries that Generate Sales Tax
Current Year and Eight Years Prior
Fiscal Year Ended December 31
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
125
Fiscal Year Ended
December 31
Total tax
levy for
fiscal year Amount
Percentage
of levy
Collections in
Subsequent
years 1 Amount
Percentage
of levy
2005 4,859 4,673 96.2%186 4,859 100.0%
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%138 6,349 99.2%
2011 6,638 6,480 97.6%141 6,621 99.7%
2012 6,850 6,693 97.7%128 6,821 99.6%
2013 7,011 6,833 97.5%111 6,944 99.0%
2014 7,064 6,933 98.1%0 6,933 98.1%
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 2014 Comprehensive Annual Financial Report
126
Fiscal
Year
Ended
December
31
General
Obligation
Bonds
Special
Assessments
External
Loans &
Notes3
Water/
Sewer
Bonds²
Other
Loans
Payable3
Total
Primary
Government
Percentage
of Personal
Income
Per
Capita 1
2005 13,650$ 2,329$ 2,958$ 19,300$ 20,673$ 58,910$ 6.3%1,333$
2006 12,955 3,288 2,784 18,045 19,394 56,466 5.6%1,186
2007 11,850 2,853 2,496 17,620 18,078 52,897 5.1%1,054
2008 10,915 120 2,222 16,245 16,722 46,224 3.9%884
2009 9,945 120 2,093 16,549 23,487 52,194 3.6%958
2010 8,940 785 1,824 29,125 13,950 54,624 3.4%970
2011 7,670 785 1,543 26,240 12,531 48,769 Not available 799
2012 4,710 395 1,258 24,260 11,067 41,690 2.2%665
2013 3,835 227 995 30,355 9,556 44,968 Not available 685
2014 3,315 208 748 28,030 7,997 40,298 Not available 595
² Water/Sewer Bonds include Special Assessments.
3 External Loans & Notes and Other Loans Payble have been restated to correct for loan misclassified as business-type
that should have been classifed as governmental. Total Primary Governement debt was not impacted.
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.
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Governmental Activities Business-type 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
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
2014 3,315 1,420 1,895 0.0544%28
Note: Details regarding the City's outstanding debt can be found in the notes and schedules
to the financial statements.
1 See the schedule of assessed value taxable property on page 120 for property tax values.
2 See schedule of population on page 130.
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 2014 Comprehensive Annual Financial Report
127
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Debt limit $49,691 $57,846 $62,079 $72,012 $73,370 $72,923 $75,213 $80,378 $88,541 $88,576
Total net debt applicable to limit 16,204 15,341 10,470 13,252 12,501 11,954 11,670 4,966 4,053 4,063
Legal debt margin $33,487 $42,505 $51,609 $58,760 $60,868 $60,969 $63,543 $75,412 $84,488 $84,513
Total net debt applicable to the
limit as a percentage of debt limit 32.61%26.52%16.87%18.40%17.04%16.39%15.52%6.18%4.58%4.59%
Legal debt margin calculation for fiscal year 2014
Assesed Valuation for 2014 Collections 3,543,038$
Non-Voted Debt Capacity Value (1.5% of Assessed Value)53,146
Less:
Non-Voted GO Bonds Outstanding (2,815)
Other Non-voted General Obligations Outstanding (748)
(3,563)
Remaining capacity without a vote 49,583
Voted and Non-Voted Debt Capacity: (2.5% of Assessed Value)88,576
Less:
Voted GO Bonds Outstanding (500)
Non-Voted GO Bonds Outstanding (2,815)
Other Non-voted General Obligations Outstanding (748)
(4,063)
$84,513
leases without a vote. The legal limit for capital leases debt (RCW 35.42.200) is included in the 2.5 percent and does not constitute extra allowable debt.
Fiscal Year Ended December 31
Legal Debt Margin
Last Ten Fiscal Years
(amounts expressed in thousands)
Note: The total indebtedness for general purposes with or without a vote cannot exceed 2.5% of the value of taxable property. The general purposes indebtedness includes debt for capital
The 1.5 percent is the maxium limit for gerneral purposes without a vote (councilmanic debt). A council may choose to allocate any portion of this debt capacity to the "voted" category.
If done so, this 1.5 percent of the indebtedness available without vote is to be proportionately reduced by the excess "voted" debt over 1 percent.
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
128
Direct debt Amount
Voted General Obligation 500$
Councilmanic General Obligation Debt 3,563
Total direct debt 4,063
Overlapping Debt
Jurisdiction Outstanding debt
Percent
applicable
Estimated Share
of Overlapping
Debt
Franklin County 30,805 51.79%15,954
Pasco School District 153,310 62.54%95,880
Port of Pasco 32,953 52.08%17,162
Total overlapping debt 128,996
Total direct & overlapping debt 133,059
Governmental activities debt ratios
Assessed valuation- 2014 (established in November, 2013 for the 2014 tax year)3,543,038
Population 68
Net direct debt to assessed valuation 0.11%
Net direct debt and overlapping debt to assessed valuation 3.76%
Assessed valuation per capita 52,104
Net direct debt per capita 60
Direct debt and overlapping debt per capita 1,957
Councilmanic debt and other obligations:
G.O. Bonds Outstanding 2,815
Other Non-voted G.O. Outstanding 748
3,563
Voted GO debt:
G.O. Bonds Outstanding 500
500$
(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.
Sources:
Franklin County Assessor's Office
Franklin County Assessor's website- tax booklet
Direct and Overlapping Governmental Activities Debt
As of December 31, 2014
(amounts expressed in thousands)
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
129
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Operating Revenues
Water Sales (1)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$ 7,594,091$
Irrigation Sales (1)678,321 717,653 753,251 874,036 917,076 954,204 1,105,076
Sewer Sales (1)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 5,914,671
Stormwater Sales (1)442,174 462,205 401,279 867,801 883,305 972,375 1,054,682
Process Water Reuse Sales (1)1,654,699 1,720,517 1,723,291 1,492,743 1,942,683 1,453,597 1,997,655
Other Utility Charges (2)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 2,347,236
Total Operating Revenues 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 20,013,411
Operating & Maintenance Expenses
Salaries & Wages 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 2,830,832
Personnel Benefits 436,186 501,301 682,213 423,330 478,162 892,651 913,062 952,672 1,114,349 1,330,549
Supplies 234,713 282,130 361,443 673,157 479,289 854,667 1,092,728 855,626 1,121,916 1,492,845
Services (1)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 5,890,538
Total Operating Expenses 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 11,544,764
Operating Income 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 8,468,647
Non-Operating Revenue
Interest Income 491,592 572,283 579,418 371,318 359,244 228,784 116,848 39,607 41,009 15,685
Net Farmland Rental (3)582,630 626,292 686,140 530,307 698,974 375,599 498,413
Total Non-Operating Revenues(4)1,074,222 1,198,575 1,265,558 901,625 1,058,218 604,383 615,261 39,607 41,009 15,685
Net Revenues 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 8,484,332
Other Sources of Funds
Special Assessment Repayments 309,611 306,036 297,186 575,461 42,005 387,867 283,861 225,506 257,366 123,404
Total Other Sources 309,611 306,036 297,186 575,461 42,005 387,867 283,861 225,506 257,366 123,404
Max Annual Assessment Debt Service 417,156 417,156 417,156 567,968 390,393 289,613 212,489 199,582 203,764 202,852
Net Revenue Available for
NonAssessment Debt Service 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 8,404,884
Non-Assessment Bond Debt Service (5)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 3,348,068
Non-Assessment Bond
Debt Service Coverage (6)6.53 5.50 4.97 5.27 4.55 4.37 2.98 2.98 2.79 2.51
Balance Available for Other Purposes 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$ 5,056,816$
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 2014 Comprehensive Annual Financial Report
130
Pasco
Fiscal Year
Ended
December
31 Population 1
Population
1
Kennewick-
Richand MSA
Unemploymen
t rate 1, 4
Population
1
Per capita
personal
income 1
Total Personal
Income3
(in thousands)
Median
household
income 1, 3
Median
household
age 1
School
enrollment
2
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 30,169 2,488,943 56,221 Not Available 15,994
2013 65,600 193,160 9.10%84,800 Not Available Not Available 57,196 29.14 16,612
2014 67,770 197,560 7.90%86,600 Not Available Not Available 58,188 Not Available 17,016
Fiscal Year
Ended
December
31
Average
wage per job
1 , 3
Unemploymen
t rate 1, 4
Population
1
Per capita
personal
income 1 , 3
Total Personal
Income3
(in thousands)
Median
household
income 1, 3
School
enrollment
K-12 1
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 53,334 7.00%6,882,400 48,353 332,784,687 57,554 1,047,353
2014 Not Available 6.20%6,968,170 49,583 345,502,773 58,686 1,057,712
SOURCES:
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
3 2013 and 2014 Data is inflation adjusted to 2013 Dollars per State of Washington Office of Financial Management
4 2013 and 2014 Unemployment Date from the U. S. Bureau of Labor Statistics
Franklin County
State
Last Ten Fiscal Years
Demographic and Economic Statistics
Tri Cities
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
131
Employer Employees Industry Rank Employees Industry Rank
Battelle/PNNL 4,219 Research and Development 1 4,485 Research and Development 1
Pasco School District 2,717 Education 2 2,065 K-12 Education 7
Kadlec Medical Center 2,644 Health Services 3 2,175 Health Services 6
ConAgra (Lamb Weston)2,498 Agriculture Products 4 3,057 Agriculture Products 4
Bechtel National 2,395 Government 5 2,850 Government 5
Kennewick School District 1,922 Education 6 1,473 K-12 Education 10
Richland School District 1,600 Education 7
Mission Support Alliance 1,512 Government 8 1,478 Government 9
Washington River Protection 1,490 Government 9 1,686 Government 8
Tyson Foods 1,300 Agriculture Products 10 Agriculture Products
CH2M Hill Government 3,260 Government 3
URS Government 3,500 Government 2
Source: TRIDEC
Prior years' information is not available.
Employer Employees Industry Rank Employees Industry Rank
Pasco School District 2,717 Education 1 2,065 K-12 1
Columbia Basin College 834 Community College 2 766 Community College 3
Lourdes Health Network 635 Health Care 3 807 Health Care 2
Boise Cascade 575 Manufacturing 4 571 Manufacturing 4
Pasco processing 400 Food processor-vegetables 5 350 Food processor-vegetables 5
City of Pasco 324 City services 6 305 City services 6
Douglas Fruit 280 Fruit packaging 7 210 Fruit packaging 8
Franklin County 267 County services 8 190 County services 9
Tri-Cities Airport 250 Airport 9
Reser's Fine Foods 214 Food processor-potatoes 10 230 Food processor-potatoes 7
West Communication Call Center 180 Call Center 10
Source: TRIDEC
2011
Franklin County
2014
Principal Employers
Year Ended December 31
Tri Cities
2011
2014
Current Year & 3 Years Ago
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
132
Employment Sector 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Goods Producing 14,300 13,600 13,400 13,600 13,300 13,200 12,900 12,700 11,900 11,600
Natural resources & construction 6,300 6,200 6,000 6,500 6,200 6,300 6,500 6,600 6,000 5,900
Manufacturing 8,000 7,400 7,400 7,100 7,100 6,900 6,400 6,100 5,800 5,800
Service providing 89,900 88,100 87,900 90,300 88,600 83,900 80,700 78,900 74,800 75,300
Private services providing 71,300 69,800 69,800 72,200 70,700 66,500 63,700 62,500 58,900 59,300
Trade, transportation, warehousing & utilities 18,000 17,500 17,100 16,700 16,600 16,200 16,700 16,800 16,000 14,900
Retail trade 12,000 11,800 11,700 11,500 11,400 11,300 11,700 11,900 11,400 10,600
Financial activities 4,300 4,200 3,900 3,700 3,600 3,400 3,600 3,600 3,500 3,400
Professional & business services 20,700 20,800 21,800 24,900 24,500 21,700 20,600 20,300 18,500 20,600
Administrative & support services 10,400 10,500 10,600 12,200 12,000 10,200 9,400 9,800 9,000 10,000
Education & health services 14,400 13,700 13,400 13,300 13,000 12,300 10,100 9,700 9,200 8,600
Leisure and hospitality 9,900 9,600 9,500 9,400 9,000 8,800 8,600 8,100 7,900 7,900
Food services 7,300 7,000 6,900 6,800 6,500 6,300 6,300 6,000 5,600 5,600
Government 18,600 18,300 18,200 18,100 18,000 17,400 17,000 16,400 16,000 16,000
Federal & State government 4,300 4,300 4,200 4,200 4,200 4,000 3,700 3,700 3,600 3,600
Local government 14,300 14,100 13,900 13,900 13,700 13,400 13,300 12,700 12,400 12,400
Total Non-Agriculture 104,200 101,700 101,300 103,900 101,900 97,100 93,600 91,600 86,700 86,900
Total Private 85,600 83,400 83,100 85,900 84,000 79,700 76,600 75,200 70,700 70,900
Non-Agriculture Wage and Salary Workers
Employed in Kennewick-Richland-Pasco MSA (rounded to hundreds) (1)
Last Ten Fiscal Years
(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. Information for 2005 through 2008 is
from Washington State Employment Security Department (using BLS data). All subsequent data (2009 and forward) is directly from the U. S. Bureau of Labor
Statistics (BLS) and not seasonally adjusted.
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
133
Fiscal Year
Ended
December 31
New
Single
Family
Permits
New
Single
Family
Value
Total
Permits
Total
Value Permits Value Permits Value Permits Value
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
2014 223 53,923 1,517 67,408 297 58,575 74 37,832 1,888 163,815
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 2014 Comprehensive Annual Financial Report
134
Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General government 47 47 49 51 52 46 45 45 45 49
Public safety
Muni Court 13 13 14 14 14 15 16 16 16 15
Police
Officers 62 62 64 66 69 67 67 67 71 71
Civilians 11 12 11 11 11 11 12 12 12 12
Fire
Firefighters and officers 34 34 34 34 34 34 33 33 35 35
Ambulance 15 15 15 15 15 16 18 19 19 19
Physical enviroment
Utilities
Water 17 18 18 20 22 22 22 21 20 20
Sewer 14 14 15 17 18 18 18 17 18 19
Water process reuse 3 3 3 3 3 3 2 2 3 2
Storm water 4 4 4 4 4 4 5 5 4 5
Irrigation 2 2 2 2 2 2 2 2 2 4
Transportation
Highways and streets
Engineering 13 15 14 14 13 13 13 14 16 17
Maintenance 7 7 7 7 7 7 7 7 6 7
Health and human services 2 2 2 2 2 2 2 3 3 3
Economic enviroment 12 12 15 14 17 15 15 15 15 16
Culture and recreation 15 15 16 17 16 16 16 16 16 16
Total 271 275 283 291 299 291 293 294 301 310
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 2014 Comprehensive Annual Financial Report
135
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
Public Safety
Police
Violent crime 98 160 150 166 217 183 202 178 151 183
Nonviolent crime 2,021 1,795 1,817 1,688 1,525 1,475 1,609 1,711 1,628 1,516
Calls for service 45,835 46,095 49,191 54,061 55,672 52,116 49,819 52,027 54,996 52,067
Victims per 1000 population 47 41 39 35 32 29 30 30 27 40
Fire & Emergency Medical Service
Number of emergency response-FIRE 416 429 428 233 238 215 277 260 279 241
% of total incidents-FIRE*10%7%6%6%5%
Number of emergency response-EMS 2,462 2,485 2,586 3,316 3,005 3,016 3,337 3,474 3,394 3,731
% of total incidents-EMS*90%79%79%79%79%
Number of emergency response-OTHER*614 662 658 730
% of total incidents- OTHER*15%15%15%16%
Community Development
Number of new Single Family units 1,008 729 518 398 467 530 483 314 204 219
Number of new Muli Family units 0 0 0 0 0 8 1 16 0 8
Number of new Manufactured units 19 15 6 6 9 14 9 21 16 4
Commercial permits 357 377 310 274 351 279 317 382 408 341
Construction value (millions)41.1 62.4 81.6 40.0 60.0 38.6 20.1 56.7 51.0 96.4
Residential permits 2,192 1,869 1,576 1,403 1,499 1,908 1,817 1,507 1,705 1,517
Construction value (millions)170.8 139.8 106.2 82.9 102.1 119.2 113.3 85.3 73.7 67.4
Physical environment
Highway and streets
Street resurfacing (miles)*4.6 3.50 3.57
Utilities
Water
Bills processed 151,515 165,165 177,195 189,061 194,614 202,136 207,685 217,911 226,934 227,682
New connections 1,246 838 734 543 631 666 571 449 328 340
Water meters replaced 104 88 75 78 73 1,842 1,900 2,640 1,431 1,471
Source: Various government departments.
Prior information not available*
Fiscal year
Operating Indicators by Function
Last Ten fiscal years
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
136
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Sub-Stations 4 4 4 4 4 4 4 4 4 4
Patrol units 34 34 35 37 43 43 50 52 53 58
Fire stations 3 3 3 3 3 3 3 3 3 3
Culture and recreation
Parks *27 27 27 27
Parks acreage *274 280 280 320
Swimming pools 3 3 3 3 3 3 3 3 3 2
Physical environment
Streets
Street (miles)225 238 302 392 475 619 781 821 823 839
Street lights 2,905 3,074 3,138 3,172 3,222 3,290 3,374 3,449 3,469 3,476
Traffic signals *42 44 49 50 50 50
Water
Water mains (miles)274 289 292 298 302 306 309 313 314 315
Services (accumulated total)14,002 15,021 15,335 15,508 15,748 16,081 16,305 16,660 16,754 16,783
Fire hydrants 1,741 1,887 1,916 1,966 1,997 2,036 2,069 2,106 2,114 2,138
Maximum daily capacity
Million Gallons per Day (MGD)29 29 29 29 29 33 33 30 30 30
Sewer
Sanitary sewer (miles)195.4 206.5 209.5 216.2 219.8 224 226 264 265 266
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 4.5
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)39 40 40 40 40 42 43 45 46 47
Number of catch basins 2,407 2,664 2,738 2,801 2,878 3,089 3,176 3,289 3,322 3,336
Irrigation
Irrigation mains (miles) 46 63 67 68 73 80 84 90 95 96
Maximum daily capacity (thousand of
gallons) 8,950 9,950 12,300 16,100 17,100 17,100 17,100 17,100 17,100 20,760
Sources: Various government departments.
* Some years not available
Capital Used by Function
Last Ten Fiscal Years
Fiscal Year Ended December 31
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
137
2008 2009 2010 2011 2012 2013 2014
Water System Accounts by Class
Single Family Residential 13,549 14,344 14,670 15,204 15,612 15,792 15,969
Multi-Family Residential 504 507 453 463 468 470 482
Commercial 1,058 1,112 1,272 1,296 1,321 1,421 1,372
Other 56 426 402 4,047 422 452 455
Total 15,167 16,389 16,797 21,010 17,823 18,135 18,278
Sewer System Accounts by Class
Single Family Residential 11,887 12,148 12,841 13,373 13,746 13,949 14,133
Multi-Family Residential 504 482 442 449 454 470 497
Commercial 921 1,017 935 949 969 987 1,004
Total 13,312 13,647 14,218 14,771 15,169 15,406 15,634
Stormwater System Customer Accounts14,667 15,129 15,778 16,329 16,718 17,580 17,781
Irrigation System Customer Accounts 3,992 4,284 4,783 5,176 5,435 5,668 6,604
Process Water Reuse Facility Customers
Pasco Processing 39%43%38%50%46%46%41%
Twin City Foods 16%19%32%16%21%19%22%
CRF Frozen Foods-Bybee Food 16%18%16%17%15%21%19%
Reser's Fine Food 29%20%14%17%18%14%18%
100%100%100%100%100%100%100%
Source: City of Pasco billing systems.
Waterworks Utility Customer Accounts
Last Seven Fiscal Years
For the Month of August
Percent of Total Annual Billed Revenue
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
138
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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$ 0.65$ 0.65$ 0.65$ 0.68$ 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 12.50 12.50 12.50 12.50 16.25
1 inch 15.75 15.75 15.75 15.75 15.75 18.74 18.74 18.74 18.74 24.35
Multi-family and commercial monthly base
Size of Service
3/4 inch 14.80 14.80 14.80 14.80 14.80 17.61 17.61 17.61 17.61 22.90
1 inch 21.37 21.37 21.37 21.37 21.37 25.43 25.43 25.43 25.43 33.05
1 1/2 inch 41.69 41.69 41.69 41.69 41.69 49.61 49.61 49.61 49.61 64.50
2 inch 66.88 66.88 66.88 66.88 66.88 79.59 79.59 79.59 79.59 103.45
3 inch 91.34 91.34 91.34 91.34 91.34 108.69 108.69 108.69 108.69 141.30
4 inch 131.60 131.60 131.60 131.60 131.60 156.60 156.60 156.60 156.60 203.60
6 inch 205.43 205.43 205.43 205.43 205.43 244.46 244.46 244.46 244.46 317.80
8 inch 284.68 284.68 284.68 284.68 284.68 338.77 338.77 338.77 338.77 440.40
Irrigation monthly charge
Base per residential unit 24.00 24.00 24.00 24.00 24.00 24.00 26.00 26.00 26.00 26.00
Per Irrigation unit 7.50 7.50 7.50 7.50 7.50 7.50 8.12 8.12 8.12 8.12
Per Irrigated acre 70.00 70.00 70.00 70.00 70.00 70.00 75.81 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 27.53 27.53 27.53 27.53 24.80 24.80 24.80 24.80
Residential monthly base > 4 units 24.50 24.50 22.05 22.05 22.05 22.05 20.00 20.00 20.00 20.00
No residential consumption charge 8.30
Commercial base rate 40.88 40.88 36.79 36.79 36.79 36.79 33.35 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 5.25
Stormwater monthly charge
Residential
Single family residential 1.80 1.80 1.80 1.80 1.80 1.80 3.00 3.90 3.90 4.40
Apartments (per unit)1.80 1.80 1.80 1.80 1.80 1.80 3.00 1.95 1.95 2.20
Multi-family residential (per unit)0.90 0.90 0.90 0.90 0.90 0.90 1.50 1.95 1.95 2.20
Undeveloped parcels - - - - - - - - - -
Vacant buildings 1.80 1.80 1.80 1.80 1.80 1.80 3.00 3.90 3.90 4.40
Industrial/Commercial
Parking for 0-5 vehicles 1.80 1.80 1.80 1.80 1.80 1.80 3.00 3.90 3.90 4.40
Parking for 6-10 vehicles 3.60 3.60 3.60 3.60 3.60 3.60 6.00 7.80 7.80 8.80
Parking for 11-15 vehicles 5.40 5.40 5.40 5.40 5.40 5.40 9.00 15.60 15.60 13.20
Parking for 16 plus vehicles 7.20 7.20 7.20 7.20 7.20 7.20 12.00 19.50 19.50 17.60
Additional charges
Property runoff to City systems ($1.25 min) - acre40.00 40.00 40.00 40.00 40.00 40.00 66.70 86.71 86.71 86.71
State Highway right-of-way - acre 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ 16.68$ 21.71$ 21.71$ 21.71$
Source: City of Pasco Municipal Code Title 3
Waterworks Selected Utility Rates
Last Ten Fiscal Years
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STATE REQUIRED SCHEDULES
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Notes to Schedule of Long-Term Liabilities:
1Reclassification of Public Works Trust Fund Loan "Riverview Trunk/SE Sewer" to general obligation “Due to Other
Governments” is the result of a classification correction. This increased and reduced the "Due to Other Governments"
balances of the general and revenue obligations, respectively, by $777,983.
2Due to prior period corrections, the beginning balances for compensated absences were restated. The general and
revenue obligation balances were reduced by $269,640 and $283,934, respectively.
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
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SCHEDULE 16- SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2014
From
Grantor/Federal Other Pass-From
Pass-Through Grantor CFDA Identification Through Direct
Program Title Number Number Awards Awards Total Note:
US Department of Health & Human Services
Pass-Through Yakima County, Office of Aging & Long Term Care
Special Programs for the Aging_Title III, Part B 93.044 2014 Sr Ctr Footcare 18,492$ 18,492$ 2
Total US Dept of Health & Human Services 18,492 - 18,492
US Department of Homeland Security
Pass-Through Franklin County Emergency Management
Homeland Security Grant Program 97.067 E14-155 19,790 19,790 2
Homeland Security Grant Program 97.067 E12-222 3,415 3,415 6
Total US Department of Homeland Security 23,205 - 23,205
US Department of Housing & Urban Development
Community Development Block Grant/Entitlement Grant 14.218 B-13-MC-53-009- CDBG 278,491 278,491 3, 5
Community Development Block Grant/Entitlement Grant 14.218 B-14-MC-53-009- CDBG 356,598 356,598 3, 5
Pass-Through Department of Commerce
Neighborhood Stabilization Plan 14.228 08-F6401-014 30,081 30,081 3
Pass-Through City of Richland
Home Investment Partnerships Program 14.239 Home Program 247,652 247,652 3
Total US Department of Housing & Urban Development 277,733 635,089 912,822
US Department of Justice
Bulletproof Vest Partnership Program 16.607 2013 14,499 14,499 2
Bulletproof Vest Partnership Program 16.607 2014 3,232 3,232 2
Pass-Through from US Marshalls
Equitable Sharing Program 16.922 Equitable Sharing 4,017 4,017 7
Pass-Through Department of Commerce
Violence Against Women Formula Grant 16.588 F13-31103-041 33,922 33,922 2
Pass-Through METRO Drug Task Force
Edward Byrne Memorial Justice Assistance 16.738 M13-31440-012 54,737 54,737 2
Edward Byrne Memorial Justice Assistance 16.738 M14-31440-009 56,886 56,886 2
Joint Law Enforcement Operations 16.111 PA-WAE-0115 1,512 1,512
Total US Dept of Justice 147,057 21,748 168,805
US Department of Transportation -National Highway Traffic Safety Administration (NHTSA)
Pass-Through Washington Association of Sherriff & Police Commission
State and Community Highway Safety 20.600 2014 -WASPC Traffic Safety 6,550 6,550
State and Community Highway Safety 20.600 WASPC Traffic Safety 942 942
Pass-Through Washington Traffic Safety Commission
State and Community Highway Safety 20.600 14ST-02 19,041 19,041
State and Community Highway Safety 20.600 13-14 Impaired Driving 2,657 2,657
State and Community Highway Safety 20.600 14-15 Impaired Driving 1,757 1,757
State and Community Highway Safety 20.600 14 Distracted Driving 353 353
Occupant Protection Incentive Grants 20.602 13-14 CIOT 974 974
Total US Dept of Transportation NHTSA 32,274 - 32,274
US Department of Transportation/ Federal Highway Administration
Pass-Through Washington Department of Transportation
Highway Planning and Construction 20.205 STPUL-3515 (007) LA-8059 1,019,484 1,019,484 2
Highway Planning and Construction 20.205 STPUL-3522 (001) LA-8117 119,672 119,672 2
Highway Planning and Construction 20.205 STPUS-0397 (008) LA-7866 66,948 66,948 2
Highway Planning and Construction 20.205 STPUS-HLP-3530 (006) LA-7055 462,126 462,126 2
Highway Planning and Construction 20.205 STPUL-3515(008)22,212 22,212 2
Highway Planning and Construction 20.205 STPUS-9911 (007) LA-7782 4,475 4,475 2
Highway Planning and Construction 20.205 STPUL-3515 (006) LA-8060 48,583 48,583 2
Highway Planning and Construction 20.205 STPUL-9911(010)74,996 74,996 2
Highway Planning and Construction 20.205 STPUL-9911 (009)7,855 7,855 2
Highway Planning and Construction 20.205 STPUL-1823(062) LA 8318 303 303 2
Highway Planning and Construction 20.205 HSIP-00S(362)113,801 113,801 2,4
Highway Planning and Construction 20.205 HSIP-3524 (006) LA-8157 563,902 563,902 2
Total US Dept. of Transportation Federal Highway Administration 2,504,357 - 2,504,357
TOTAL FEDERAL AWARDS EXPENDED:3,003,118$ 656,837$ 3,659,955$
The accompanying notes are an integral part of this schedule.
MCAG NO. 0292
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144
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
NOTE 1 – BASIS OF ACCOUNTING
The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the City’s
financial statements. The City uses a modified accrual basis of accounting for its governmental funds and
full accrual basis of accounting for its 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, are more than shown.
NOTE 3 – REVOLVING LOAN – PROGRAM INCOME
The City participates in a Regional Revolving Loan program for economic development which is operated
by Benton Franklin Council of Governments. Under this federal pass-through grant, repayments to the
City are considered program income, and loans of such funds to eligible recipients are considered
expenditures. Expenditure amounts listed for these loans include the proceeds used during the year in the
amount of $426,229.
Of this amount, $180,290 in program income was expended on grant number B-13-MC-53-009-CDBG.
The remaining $245,939 in program income was expended on grant number B-14-MC-53-009-CDBG.
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 income, and the cost of rehabilitating homes and
purchasing properties are considered expenditures. In 2014, $75,900 in program income was generated
from the sale of property.
The City also participates in the Housing and Urban Development HOME Program for low-income
individuals, as part of a regional consortium administered through the City of Richland. The City is not
privy to information on what portion of funds received from the City of Richland are derived from program
income.
NOTE 4 – PRIOR YEAR EXPENDITURES
The amount reported includes $3,225 in previously unreported prior year expenditures.
NOTE 5 – AMOUNTS AWARDED TO SUBRECIPIENTS
$236,566 that was passed through to subrecipients. Of this amount, $52,647 was passed through for
subrecipients of grant B-13-MC-53-009-CDBG. The remaining amount of $183,919 was passed through
to subrecipients of grant B-14-MC-53-009-CDBG.
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NOTE 6 – NONCASH AWARDS - EQUIPMENT
The City received equipment that was purchased with federal Homeland Security funds by Washington
Association of Sheriffs & Police Chiefs. The amount reported on the schedule is the fair market value of
the property on the date it was received by the City, as priced by the State of Washington.
NOTE 7 –DEPARTMENT OF JUSTICE –EQUITABLE SHARING
The City reports these funds on the Schedule of Expenditures of Federal Awards when program proceeds
are received rather than when expenditures are incurred due to program stipulations.
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
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SCHEDULE 19 - LABOR RELATIONS CONSULTANTS
For the Year Ended December 31, 2014
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:
$15,275.00 $!0,287.86 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.):$270 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
Certified Correct this day of February, 2015
to the best of my knowledge and belief:
Signature
Colleen ChapinHR Manager
MCAG NO. 0292
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
147
Program Manager:Coleen Chapin
Address:525 N 3rd Ave Pasco Wa 99301
Phone:509-545-3473
Email:chapinc@pasco-wa.gov
1 Yes Does the entity self-insure for any class of risk, including liability, property, health and welfare
unemployment compensation, workers' compensation? (yes or no)
IF NO, STOP, you do not need to complete the rest of this Schedule.
If YES, continue below,
a.Which class of risk does the entity self-insure? (Check all that apply)
i. Liability
ii. Property
iii.X Health and welfare (medical, dental, prescription)
iv. Unemployment compensation
v. Workers' compensation
vi. Other - please dscribe ________________________________________
b.Yes Does the entity self-insure as an individual program? (yes or no)
i.No If answered YES, does the entity allow another separate legal entity into it self-
insurance program(s)? (yes/no) For example, employees of a different organization
participate in a health and welfare program of the city.
If so, list the entity or entities:____________________________________________
c.No Does the entity self-insure as a joint program? (yes or no)
i.If Yes, list the other member(s) ____________________________________________
MCAG NO. 0292
SCHEDULE 21 - LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31, 2014
City of Pasco, Washington 2014 Comprehensive Annual Financial Report
148
2.No Does the entity administer its own claims? (yes or no)
3.Yes Does the entity contract with a third party administrator for claims administration? (yes or no)
4.Yes Did the entity receive a claims audit in the last three years, regardless of who administered
the claims? (yes or no)
5.Yes Were the program's revenues sufficient to cover the program's expenses (yes or no)
6.No Did the program use an acturary to determine its liabilities? (yes or no)
Numbers of claims Numbers of claims Total amount of
received during the paid during the claims paid
period period during the period
Medical/Rx 24,592 23,567 4,017,774$
Dental 2,063 1,749 378,851$
Description of Risk Type