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2015.11.30 Council Special Meeting Packet
Page 4-16 Special Meeting 1. CALL TO ORDER: 2. ROLL CALL: AGENDA PASCO CITY COUNCIL 7:00 p.m. (a) Pledge of Allegiance November 30, 2015 3. CONSENT AGENDA: All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion (in the form listed below). There will be no separate discussion of these items. If further discussion is desired by Council members or the public, the item may be removed from the Consent Agenda to the Regular Agenda and considered separately. (a) Consent to Transfer of TV Franchise Agreement To approve Resolution No. 3671, conditionally consenting to the transfer of the TV Franchise Agreement from Charter Communications, Inc., to (its subsidiary) CCH1, LLC and, further, authorize the City Manager to execute the agreement related thereto. (RC) MOTION: I move to approve the Consent Agenda as read. 4. PROCLAMATIONS AND ACKNOWLEDGEMENTS: 5. VISITORS - OTHER THAN AGENDA ITEMS: This item is provided to allow citizens the opportunity to bring items to the attention of the City Council or to express an opinion on an issue. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an immediate response. Some questions require consideration by Council over time and after a deliberative process with input from a number of different sources; some questions are best directed to staff members who have access to specific information. Citizen comments will normally be limited to three minutes each by the Mayor. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the Council outside of formal meetings. 6. REPORTS FROM COMMITTEES AND/OR OFFICERS: (a) Verbal Reports from Councilmembers Page 1 of 321 17- 174 175- 199 200-228 229-315 Special Meeting November 30, 2015 7. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO: (a) 2016 Operating & Capital Projects Budget Ordinances CONDUCT PUBLIC HEARING MOTION: I move for the first reading of Ordinance No. 4250, for consideration of the City of Pasco Annual Operating Budget for the Year 2016. MOTION: I move for the first reading of Ordinance No. 4251, for consideration of the City of Pasco Capital Projects Budget for the Year 2016. 8. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS: (a) Utility Rate Adjustments (Sanitary Sewer and Water) MOTION: I move to adopt Ordinance No. 4252, amending Chapter 3.07 of the Pasco Municipal Code effective January 1, 2016 regarding sewer and water utility rates and, further, authorize publication by summary only. (b) Ambulance Utility Rate Adjustment MOTION: I move to adopt Ordinance No. 4253, amending PMC Section 3.07.010 'Ambulance,' adjusting the Ambulance Utility fees and, further, authorize publication by summary only. (c) Revenue Bonds for Waterworks Utility MOTION: I move to adopt Ordinance No. 4254, relating to the waterworks utility of the City, including the sanitary sewerage system and the system of storm or surface water sewers as a part thereof; specifying, adopting and ordering the carrying out of a system or plan of additions to and betterments and extensions of the waterworks utility of the City; providing for the issuance of one or more series of water and sewer revenue bonds of the City in an aggregate principal amount of not to exceed $[ ] for the purpose of providing the funds necessary (a) to pay all or a portion of the costs of carrying out the plan of additions, (b) to make a deposit to the debt service reserve account, (c) to refund and redeem outstanding water and sewer revenue bonds of the City and (d) to pay the costs of issuance and sale of the bonds and the administrative costs of the refunding; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters and, further authorize publication by summary only. Page 2 of 321 Special Meeting 9. UNFINISHED BUSINESS: 10. NEW BUSINESS: November 30, 2015 316-321 (a) 12015 Operating & CIP End -of -Year Budget Amendment 11. MISCELLANEOUS DISCUSSION: 12. EXECUTIVE SESSION: IRR 1313 0111-1e1u 1�►Y N (RC) Roll Call Vote Required * Item not previously discussed Q Quasi -Judicial Matter MF# "Master File #...." REMINDERS: 12:00 p.m., Wednesday, December 2, 2601 N. Capitol Avenue — Franklin County Mosquito Control District Meeting. (COUNCILMEMBER BOB HOFFMANN, Rep.; AL YENNEY, Alt.) 4:30 p.m., Thursday, December 3, 7130 W. Grandridge Blvd. - Tri -Cities Business & Visitor Center Holiday Open House. (COUNCILMEMBER REBECCA FRANCIK) 5:30 p.m., Thursday, December 3, P&R Classroom — Parks & Recreation Advisory Board Meeting. (COUNCILMEMBER SAUL MARTINEZ, Rep.; MIKE GARRISON, Alt.) This meeting is broadcast live on PSC -TV Channel 191 on Charter Cable and streamed at www.pasco-wa.gov/psctvlive. Audio equipment available for the hearing impaired; contact the Clerk for assistance. Page 3 of 321 AGENDA REPORT FOR: City Council TO: Dave Zabell, City Manager FROM: Stan Strebel, Deputy City Manager SUBJECT: Consent to Transfer of TV Franchise Agreement I. REFERENCE(S): Proposed Resolution Transfer Agreement November 24, 2015 Regular Meeting: 11/30/15 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. , conditionally consenting to the transfer of the TV Franchise Agreement from Charter Communications, Inc., to (its subsidiary) CCH1, LLC and, further, authorize the City Manager to execute the agreement related thereto. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: Charter Communications, Inc., is the ultimate parent company of Fallon Video Communications, the City's cable TV franchisee. In May of 2015, Charter and its subsidiary, CCH 1, LLC entered into a series of agreements whereby, if the transactions contemplated by the agreements are approved and consummated, Charter will merge with a subsidiary of New Charter and all shares of Charter Communications will be converted into shares of New Charter and New charter will assume the name "Charter Communications, Inc." The City believes that this proposed action constitutes a transfer for which the City's approval is required under the current franchise agreement. Under the regulations of the FCC and the Federal Cable Act, the City is required to act on the proposed transfer within 120 days of the filing of a complete transfer application. The City's time period for response expires on December 1. V. DISCUSSION: Page 4 of 321 The proposed, attached transfer agreement sets forth the agreement with Charter for the City's conditional approval. In the opinion of the City's consultant and expert legal counsel, the agreement best protects the interests of the City in the transfer process. Staff recommends approval of the Resolution by Council. This item was discussed at the November 23 Workshop meeting. Staff recommends approval of the resolution. Page 5 of 321 RESOLUTION NO. A RESOLUTION of the City of Pasco conditionally consenting to the transfer of Franchisee Falcon Video Communications, L.P. from Charter Communications, Inc. to CCH I, LLC and authorizing the City Manager to execute an agreement related thereto. WHEREAS, Falcon Video Communications, L.P. ("Franchisee") currently operates a cable system under the terms and conditions of a cable franchise (the "Franchise Agreement") granted by the City pursuant to Ordinance, as lawfully amended from time to time in accordance within the provisions in such documents (collectively "Franchise Documents") and applicable law; and WHEREAS, Charter Communications, Inc. ("Charter Communications") is the ultimate parent company of Franchisee; and WHEREAS, on May 23, 2015, Charter Communications, with its subsidiary CCH I, LLC ("New Charter"), entered into agreements with Advance/Newhouse Partnership ("A/N"), the ultimate parent company of Bright House Networks, LLC ("BHN"), Time Warner Cable Inc. ("TWC"), and Liberty Broadband Corporation ("Liberty") (collectively "the Agreements"), the purpose of which are to effectuate the acquisition of BHN and merger with TWC by and into New Charter ("Transaction"); and WHEREAS, if the Transaction is consummated, Charter Communications will merge with a subsidiary of New Charter, and all shares of Charter Communications will be converted into shares of New Charter, and New Charter will assume the name Charter Communications, Inc. ("Charter"); and WHEREAS, pursuant to the Agreements, A/N, TWC shareholders, and Liberty will each hold ownership interests in Charter; and WHEREAS, the City has taken the position that the Franchise Documents provide that prior approval of the City is required for the Transaction and Charter has disputed that position; and WHEREAS, on August 3, 2015, Charter Communications and New Charter sent with the City an FCC Form 394 (the "Application") pursuant to the federal Cable Act and FCC regulations, expressly reserving its position that the Franchise Documents do not require prior approval of the City; and WHEREAS, pursuant to the federal Cable Act and FCC regulations, the City is required to act on the Application within 120 days of the City's receipt of a complete and accurate Application unless the parties agree to an extension of that time period; and WHEREAS, the City responded to the Application by letter to Charter Communications requesting answers to a series of questions; and WHEREAS, Charter Communications responded to the City's letter on September 1, 2015; and WHEREAS, the 120 -day deadline for the City to act on the Application is December 1, 2015, if the Transfer Applications is deemed complete; and WHEREAS, the City has reviewed the Application and examined the financial, technical, and legal qualifications of New Charter in accordance with applicable laws and the Franchise Documents; and Page 6 of 321 WHEREAS, Charter Communications and New Charter have agreed among other things that following the completion of the Transaction, Franchisee and New Charter will continue to be bound by and comply with, and be liable for any past failure of Franchisee to comply with all of the commitments, duties, obligations, and liabilities under the Franchise Documents and all applicable federal, state and local laws, to the maximum extent required by law; and WHEREAS, the foregoing agreement is embodied in a Transfer Agreement by and between the City and Charter Communications, New Charter, and Franchisee; and WHEREAS, in reliance on the terms of the parties' Transfer Agreement and based upon the City's review and examination of the Application, and in reliance upon the representations, documents, and supplemental information provided by Charter Communications and Franchisee in connection with the Transaction, the City is willing to grant its consent to the Transaction, subject to certain conditions. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pasco: Section 1 The Application as described above is hereby granted and the City's consent to the transaction is hereby given as of November 30, 2015, subject to the following conditions: A. Charter Communications, New Charter, and Franchisee must execute the Transfer Agreement in substantially the form attached hereto and deliver the executed copy of the Transfer Agreement to the City Clerk no later than 5:00 p.m. PST on Wednesday, December 16, 2015. B. The Transaction must be consummated on or before November 23, 2016, and on terms that are not in any material respect different from those described in the Transfer Agreement, the Application and other related materials provided to the City by Charter Communications and the Franchisee; otherwise the City's consent provided herein shall by voidable at the option of the City. Section 2 If the foregoing conditions are satisfied, the City's grant of the Application and consent to the Transaction shall be deemed given in accordance with applicable law. If any of the aforementioned conditions is not satisfied, the City's grant of the Application and consent to the Transaction shall be deemed denied as of 5:00 p.m. PST on December 1, 2015 under applicable law. Section 3 The City Manager is authorized to sign the Transfer Agreement. PASSED by the City Council of the City of Pasco at its meeting this 30th day of November, 2015. Matt Watkins, Mayor ATTEST: APPROVED AS TO FORM: Debra L. Clark, City Clerk Leland B. Kerr, City Attorney Page 7 of 321 TRANSFER AGREEMENT This Agreement is made this _ day of 2015, by and among: 1.1.1. City of Pasco, Washington, a Municipal Corporation ("City"); 1.1.2. Falcon Video Communications, L.P. ("Franchisee"); 1.1.3. Charter Communications Operating, LLC by Charter Communications, Inc., its Manager ("Charter Communications"); and 1.1.4. CCH I, LLC ("New Charter") RECITALS WHEREAS, Falcon Video Communications, L.P. ("Franchisee") currently operates a cable system ("System") under the terms and conditions of a cable franchise (the "Franchise Agreement") granted by the City pursuant to Ordinance No. 3304, as lawfully amended from time to time in accordance within the provisions in such documents (collectively, the "Franchise Documents") and applicable law; and WHEREAS, Charter Communications, Inc. ("Charter Communications") is the ultimate parent company of Franchisee; and WHEREAS, on June 18, 2014, Franchisee, Charter Communications, and Comcast Corporation ("Comcast") filed an application seeking the City's consent to a transaction ("Comcast Transaction") whereby control of Franchisee would be transferred from Charter Communications to Comcast; and WHEREAS, or on about November 25, 2014, in the context of reviewing that application and conditionally consenting to the Comcast Transaction, the City, Franchisee, Charter Communications, COO Transfers, LLC, and Comcast entered into an agreement ("Comcast Transfer Agreement"); and WHEREAS, although the City consented to the Comcast Transaction consistent with the terms of the Comcast Transfer Agreement, the Comcast Transaction was not consummated; 1 Page 8 of 321 WHEREAS, on May 23, 2015, Charter Communications, with its subsidiary CCH I, LLC ("New Charter"), entered into agreements with Advance/Newhouse Partnership ("A/N"), the ultimate parent company of Bright House Networks, LLC ("BHN"), Time Warner Cable Inc. ("TWC"), and Liberty Broadband Corporation ("Liberty") (collectively "the Agreements"), the purpose of which are to effectuate the acquisition of BHN and merger with TWC by and into New Charter ("Transaction"); and WHEREAS, if the Transaction is consummated, Charter Communications will merge with a subsidiary of New Charter, and all shares of Charter Communications will be converted into shares of New Charter, and New Charter will assume the name Charter Communications, Inc. ("Charter"); and WHEREAS, pursuant to the Agreements, A/N, TWC shareholders, and Liberty will each hold ownership interests in Charter; and WHEREAS, the City has taken the position that the Franchise Documents provide that prior approval of the City is required for the Transaction and Charter has disputed that position; and WHEREAS, on August 3 2015, Charter Communications and New Charter sent the City an FCC Form 394 (the "Transfer Application") pursuant to the federal Cable Act and FCC regulations expressly reserving its position that the Franchise Documents do not require prior approval of the City; and WHEREAS, the City and Franchisee have been engaged in an extended franchise renewal process that is not yet complete; and WHEREAS, the City and Franchisee have agreed to extend the term of the Franchise to February 1, 2016; and WHEREAS, Charter Communications and New Charter have agreed that, following the completion of the Transaction, Franchisee and New Charter will continue to be bound by and comply with, and be liable for any past failure by Franchisee to comply with, all of the commitments, duties and obligations of the Franchisee under the Franchise Documents and all applicable federal, state and local laws, to the maximum extent allowed by law; and 2 Page 9 of 321 NOW, THEREFORE, in consideration of the City's consent to the Transaction, and subject to the terms and conditions of this Transfer Agreement and of the City's Resolution granting consent to the Transaction, THE PARTIES DO HEREBY AGREE as follows: 1. TRANSFER OF THE FRANCHISEE 1.1 The City's consent to the Transfer Application through the adoption of the Transfer Resolution in substantially the form attached hereto (the "Transfer Resolution"), is a condition precedent to this Transfer Agreement becoming effective. This Transfer Agreement will be voidable if the Transaction is not consummated by November 23, 2016, or if the City Council does not consent to the Transfer Application by adopting the Transfer Resolution. 2. AFFIRMATION OF FRANCHISE OBLIGATIONS 2.1 Charter Communications, New Charter and Franchisee (collectively, the "Companies") hereby accept, acknowledge and agree that, after consummation of the Transaction, Franchisee will continue to be bound by and responsible for all the commitments, duties, obligations, and liabilities, past, present, continuing and future, embodied in the Franchise Documents, whether those commitments, duties, obligations, or liabilities arose before or after the date of consummation of the Transaction or the date that the City Council adopts the Transfer Resolution, to the maximum extent permitted by law, and that neither consummation of the Transaction nor the City's approval of the Transfer Application will have any effect on these commitments, duties, obligations, or liabilities. 2.2 The Companies agree that neither consummation of the Transaction nor the City's approval of the Transfer Application shall in any respect relieve them of any responsibility they may have for Franchisee's past acts or omissions, known or unknown, including any liability for any and all previously accrued but unfulfilled obligations of the Franchisee to the City under the Franchise Documents and applicable law, for all purposes, including but not limited to review of past performance for purposes of determining whether the Franchise should be renewed. Neither consummation of the Transaction nor this Transfer Agreement shall modify the rights of Charter Communications, New Charter, Franchisee and/or the City under or related to the Franchise Documents as compared to the rights that could have been exercised by Franchisee and/or the City had the Transaction not occurred. This Transfer Agreement shall have no effect on the rights of the City to ensure compliance, or cure of non-compliance, by 3 Page 10 of 321 Franchisee under the Franchise Documents, and the Companies shall not raise a claim to the contrary. 2.3 The City agrees that this Transfer Agreement is without prejudice to or waiver of the Franchisee's rights to defend any claim of default or non-compliance with the Franchise Documents on the basis that such default or non-compliance has not occurred, or has been cured or, except as otherwise expressly provided herein, from raising any other defense available to Franchisee. 3. ADDITIONAL CONDITIONS 3.1 In the event the Transaction described in the Transfer Application does not close by November 23, 2016, or closes on terms that are in any material respect different from the terms disclosed to the City in the Transfer Application, then any City consent to the Transfer Application shall be voidable by the City and of no force or effect if so voided, and the Transfer Application shall be deemed to have been timely denied under 47 USC § 537 and 47 CFR § 76.502 if so voided provided that the Companies do not waive and expressly reserve their position that the Franchise Documents do not require prior approval of the City for the Transaction. 3.2 The Companies waive any and all claims that they may have that any denial of the Transfer Application that may result from Subsection 3.1 fails to satisfy the deadlines established by applicable law including, without limitation, claims based on, arising out of, or relating to the time limits set forth in 47 USC § 537, as amended, or 47 CFR § 76.502(a), and agree that they shall be deemed to have agreed to an extension of time for the City to act on the Transfer Application within the meaning of 47 CFR § 76.502(c) as required to make any denial effective, provided that the Companies do not waive and expressly reserve their position that the Franchise Documents do not require prior approval of the City for the Transaction. 4. ADDITIONAL AGREEMENTS OF THE PARTIES 4.1 The City reserves all rights not expressly waived in this Transfer Agreement. In particular and without limitation: 4.1.1 Neither this Transfer Agreement, nor any other action or omission by the City at or before the execution of this Transfer Agreement, shall be construed to grant the City's 0 Page 11 of 321 consent to any future transfer of the System or control of the Franchisee, or to mean that the City's consent to any such future transfer is not required. 4.1.2 The City's consent to the Transfer Application shall not constitute a waiver or release of any of the City's rights or claims with respect to Franchisee's compliance (or non-compliance) with the terms, conditions, requirements and obligations set forth in the Franchise Documents, whether arising before or after the date of the Transfer Resolution or consummation of the Transaction. The City's approval of the Transfer Application shall in no way be deemed or construed to be an agreement or concession by the City that Franchisee is in compliance with all of its obligations under the Franchise Documents. 4.1.3 The City, in collaboration with the City of Richland (collectively "Cities"), has been engaged in a franchise renewal process with the Franchisee pursuant to 47 USC § 546 (a) — (h). On July 31, 2013, the Cities proceeded with the Cable Act's formal renewal process and issued an RFRP. On December 30, 2013, Franchisee submitted a formal renewal proposal in response to the RFRP issued by the Cities ("Renewal Proposal"). In order to permit further time for informal renewal negotiations, the parties subsequently entered into an agreement tolling the formal renewal process, which expires on February 1, 2016. 4.1.4 The Companies acknowledge receiving letters from the City related to Ordinance Nos. 4222 and 4223. If the customer account changes related to those Ordinances are not completed prior to the closing of the Transaction, Franchisee will work with the City to complete whatever changes may be required. 4.1.5 The Companies shall not contend and hereby waive any claim that the City is barred, by reason of its consent to the Transfer Application, from considering or raising any claim based on Franchisee's past or present failure to comply with any term or condition of the Franchise Documents or applicable law, including, without limitation, any unpaid franchise fees lawfully due the City from Franchisee, any known and unresolved consumer complaints, and any construction, security or facility requirements of the Franchise Documents that are unsatisfied, and regardless whether any such claim arose before or after the date of the Transfer Resolution or consummation of the Transaction. 4.1.6 The Companies agree to assume all risks associated with any future non- renewal or non -extension of the Franchise Agreement or other potential termination of the Franchise Agreement, and further agree that they will not raise any claim or defense that they 5 Page 12 of 321 are entitled to renewal of the Franchise Agreement or protected from revocation of the Franchisee Agreement by reason of the City's approval of the Transaction. 4.1.7 Except as otherwise expressly provided for herein, this section 4 is without prejudice to Companies' rights to defend any claim of default or non-compliance with the Franchise Documents on the basis that such default or non-compliance did not occur, or has been cured, or from raising any other lawful defense. 5. RATES 5.1 New Charter and Franchisee further agree that neither the Transaction, the Transfer Application consent process, the City's Resolution granting conditional consent to the Transaction, nor this Transfer Agreement, standing on its own or collectively, provides any basis for increasing the rates paid by subscribers through cost pass-through as so-called "external costs" or as new franchise requirements, and neither the City's consent process nor the City Council resolution granting conditional consent, standing on its own or collectively, provides any basis for increasing the rates paid by subscribers in any manner. 6. REPRESENTATIONS AND WARRANTIES 6.1 The Companies acknowledge that the City's consent to the Transfer Application is made in reliance upon the representations, documents, and information provided by the Companies in connection with the Transfer Application and supplemental information thereto. 6.2 The Companies represent and warrant that the Transaction is not based on any representation by the City (other than as provided by federal and state law) that the Franchise Agreement will be renewed or extended and that New Charter and Franchisee shall assume all risks associated with any future non -renewal or non -extension of the Franchise Agreement. 6.3 The City acknowledges that the Companies retain all rights, claims, and defenses they or their predecessors may have regarding the operation of the cable system under applicable law, including under 47 USC § 546. 6.4 New Charter represents and warrants that the Transaction will not in any respect adversely affect Franchisee's ability to meet the lawful and valid requirements of the Franchise Documents. A Page 13 of 321 6.5 New Charter and Franchisee agree they will not file with the City a request under Section 625 of the Cable Act , 47 USC § 545, seeking modification of any existing requirements of the Franchise Documents as a result of any increase in debt service, debt service coverage or equity requirements incurred in connection with the Transaction. 6.6 The Companies acknowledge that the City has not undertaken a franchise compliance audit as a part of its review of the Transfer Application and that there may be issues related to Franchisee's possible non-compliance with the Franchise Documents that are not known to the City at this time. Pursuant to Section 2.1 of this Transfer Agreement, the Companies agree that Franchisee shall be bound by and liable for all the commitments, duties, obligations, and liabilities, past, present, continuing and future, of Franchisee embodied in the Franchise Documents, to the maximum extent permissible by law, and that the City's action to approve the Transfer Application shall not be interpreted as, or deemed to be, a waiver of the City's rights to enforce the Franchise Documents, regardless whether any claim by the City relating to any failure by Franchisee to comply with the Franchise Documents arose before or after the date of this Transfer Agreement. 7. INDEMNIFICATION 7.1 The Companies agree to indemnify and hold the City harmless against any loss, claim, damage liability or expense (including, without limitation, reasonable attorneys' fees) proximately caused by any representation or warranty made by Charter Communications, New Charter, or Franchisee herein which proves to be untrue or inaccurate in any material respect. 8. BREACHES 8.1 Any breach of this Transfer Agreement shall be deemed a breach of the Franchise Documents. 9. MISCELLANEOUS PROVISIONS 9.1 Effective Date: This Transfer Agreement shall be effective and binding upon the parties upon closing of the Transaction. 9.2 Entire Agreement: This Transfer Agreement constitutes the entire agreement of the parties with respect to the matters addressed herein. No statements, promises or inducements inconsistent with this Transfer Agreement made by any party shall be valid or 7 Page 14 of 321 binding, unless in writing and executed by all parties. This Transfer Agreement may only be modified by written amendments hereto signed by all parties. 9.3 Binding Acceptance: Any purported assignment of this Transfer Agreement or the rights or privileges of any party hereunder is void without the express written consent of the other parties hereto. Subject to the foregoing, this Transfer Agreement shall bind and benefit the parties hereto and their respective and permitted heirs, beneficiaries, administrators, executors, receivers, trustees, successors and assigns, and the promises and obligations herein shall survive the expiration date hereof. 9.4 Voluntary Agreement: This Transfer Agreement is freely and voluntarily agreed to by each party, without any duress or coercion, and after each party has consulted with its counsel. Each party has carefully and completely read all of the terms and provisions of this Transfer Agreement. Neither Charter Communications, New Charter, nor Franchisee, nor any of their affiliates, nor the City, will take any action to challenge any provision of this Transfer Agreement; nor will any of them participate with any other person or entity in such action. 9.5 Drafting: This Transfer Agreement is a product of common negotiation among the parties and shall not be construed against any party on grounds relating to drafting, revision, review or recommendation by any agent or representative of such party. 9.6 Counterparts: This Transfer Agreement may be executed in several counterparts, each of which when so executed shall be deemed to be an original copy, and all of which together shall constitute one agreement binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterparts. 9.7 Governing Law: This Transfer Agreement shall be governed in all respects by the law of the State of Washington. 9.8 Captions and References: The captions and headings of sections throughout this Transfer Agreement are intended solely to facilitate reading and reference to the sections and provisions of this Transfer Agreement. Such captions shall not affect the meaning or interpretation of this Transfer Agreement. Page 15 of 321 IN WITNESS WHEREOF, the parties hereto have executed this Transfer Agreement as of the day and year first above written. ATTEST: Debbie Clark City Clerk APPROVED AS TO FORM: Lee Kerr City Attorney APPROVED: City of Pasco Dave Zabell, City Manager Falcon Video Communications, L.P By: Title: Charter Communications Operating, LLC by Charter Communications, Inc., its Manager By:_ Title: CCH I, LLC. By: Title: 9 Page 16 of 321 AGENDA REPORT FOR: City Council November 24, 2015 TO: Dave Zabell, City Manager Regular Meeting: 11/30/15 FROM: Rick Terway, Director Administrative & Community Services SUBJECT: 2016 Operating & Capital Projects Budget Ordinances I. REFERENCE(S): 2016 Preliminary Annual Operating & Capital Improvement Budget Proposed 2016 Operating Budget Ordinance Proposed 2016 Capital Projects Budget Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: CONDUCT PUBLIC HEARING MOTION: I move for the first reading of Ordinance No. , for consideration of the City of Pasco Annual Operating Budget for the Year 2016. MOTION: I move for the first reading of Ordinance No. , for consideration of the City of Pasco Capital Projects Budget for the Year 2016. III. FISCAL IMPACT: $184,950,295 - Annual Operating Budget $ 78,349,715 - Capital Projects Budget IV. HISTORY AND FACTS BRIEF: The 2016 Preliminary Budget was discussed at the Council Workshop meeting on November 9, 2015, and elements thereof at the November 23, 2015 workshop. General Fund Revenues and Expenditures were discussed as well as other operating fund budgets impacting the General Fund. Each Department Director provided a briefing and answered questions regarding oversight of their respective operating and capital projects budgets. Consistent with state statutes, a Public Hearing was held for comment on the budget at Page 17 of 321 the November 16, 2015 meeting. Following the Public Hearing, Council discussed the proposed budgets. V. DISCUSSION: Since the Public Hearing on November 16, 2015, there have been no changes to the proposed budgets. Second Reading and Adoption of Budget Ordinances is scheduled for December 7th. Page 18 of 321 2016 Annual Operations Capital Improvement Preliminary Budget Page 19 of 321 CITY OF PASCO, WASHINGTON 2016 ANNUAL BUDGET TABLE OF CONTENTS Page A GUIDE TO THE CITY OF PASCO BUDGET BUDGET MESSAGE SUMMARIES CITY MANAGER'S BUDGET MESSAGE LIST OF CITY OFFICIALS 2016 OPERATING BUDGET ORDINANCE....................................................... 1 2016 SUMMARIZED REVENUES - ALL OPERATING FUNDS .............................. 2 2016 SUMMARIZED EXPENDITURES - ALL OPERATING FUNDS ........................ 4 COMPARATIVE REVENUE SUMMARY - GENERAL. FUND ................................ 6 COMPARATIVE EXPENDITURE SUMMARY - ALL OPERATING FUNDS .............. 8 COMPARATIVE EXPENDITURE SUMMARY - GENERAL FUND ......................... 9 CITY WIDE ORGANIZATION CHART............................................................ 10 GENERAL FUND CITYCOUNCIL.................................................................................................. 12 MUNICIPALCOURT.......................................................................................... 14 CITYMANAGER............................................,................,................................... 17 POLICE DEPARTMENT...................................................................................... 20 FIREDEPARTMENT............................................................................................. 23 ADMINISTRATIVE & COMMUNITY SERVICES .............................................. 27 COMMUNITY DEVELOPMENT.......................................................................... 31 ENGINEERING................................................................................................... 34 LIBRARY/NON-DEPARTMENTAL....................................................................... 41 SPECIAL REVENUE FUNDS CITYSTREET...................................................................................................... 44 ARTERIALSTREET................................................................................................ 46 1-182 CORRIDOR TRAFFIC IMPACT .................................................... 47 STREETOVERLAY................................................................................................ 48 COMMUNITY DEVELOPMENT BLOCK GRANT ..................................... 50 MARTIN LUTHER KING COMMUNITY CENTER ................................................ 52 AMBULANCE SERVICE...................................................................................... 54 CITY VIEW CEMETERY................................................................................... 56 BOULEVARD PERPETUAL MAINTENANCE .......................................... 58 ATHLETIC PROGRAMS.................................................................................. 59 GOLFCOURSE................................................................................. 60 SENIOR CITIZEN CENTER.................................................................................... 62 MULTI -MODAL FACILITY................................................................ 64 SCHOOL IMPACT FEE..................................................................................... 65 RIVERSHORE TRAIL & MARINA MAINTENANCE .................................. 66 SPECIAL LODGING ASSESSMENT...................................................... 67 LITTER ABATEMENT....................................................................... 68 REVOLVING ABATEMENT................................................................................. 69 T.R.A.C. DEVELOPMENT & OPERATING ............................................. 70 PARK. DEVELOPMENT ......................... ................................. ............................... 71 CAPITAL IMPROVEMENT................................................................ 72 Page 20 of 321 ECONOMIC DEVELOPMENT............................................................... 73 STADIUM/CONVENTION CENTER ..................................................... 74 DEBT SERVICE FUNDS LIDGUARANTEE............................................................................ 76 GENERAL OBLIGATION BONDS ............................................. a ............ 77 CONSTRUCTION FUNDS GENERAL, PARK, STREET PROJECTS ................................................... 80 ENTERPRISE FUND WATER/SEWER UTILITY.................................................................................... 82 INTERNAL SERVICE FUNDS EQUIPMENT RENTAL OPERATING - GOVERNMENT & BUSINESS TYPE ..... 86 EQUIPMENT RENTAL REPLACEMENT - GOVERNMENT & BUSINESS TYPI 89 MEDICAL -DENTAL INSURANCE / CENTRAL STORES .................................... 91 PERMANENT FUND CITY VIEW CEMETERY ENDOWMENT .................................................... 94 TRUST FUNDS OLD FIRE PENSION - PENSION FUND ................................................... 96 OLD FIRE PENSION - MEDICAL FUND ................................................... 97 CAPITAL PROJECTS APPENDIX 2016 CAPITAL PROJECTS BUDGET ORDINANCE ............................................... 101 2016 BUDGET PROJECTS LISTING................................................................ 107 COMPARATIVE SUMMARY OF AD VALOREM TAXES ..................................... 113 RATIO OF GENERAL BONDED DEBT TO ASSESSED VALUE ................................ 114 LEGAL DEBT LIMITATION................................................................................ 115 SUMMARY OF DEBT (except L.I.D.'s)............................................................................ 116 WAGESCHEDULES..................................................................................... 119 GLOSSARY............................................................................................... 125 Page 21 of 321 A GUIDE TO THE CITY OF PASCO BUDGET The intent of this guide is to explain basic concepts of how the City of Pasco government is financed, how the City accounts for its finances in order to meet its stewardship obligation over the public's money, and how the budget process works. The City of Pasco's mission is to provide for the basic safety, health and welfare of its citizens by providing a variety of social, health, environmental, public safety, and other services to the public. The wide variety of services makes it a challenge for the City to keep its citizens informed and involved in the business of government. Hopefully, this Guide will make it easier to understand how some of the City's financial activities work. WHAT IS A BUDGET? The annual budget of the City of Pasco is a formal statement of the financial policy and plan of the City for the calendar year. The Budget document presents in detail the financial plan of the City, including its various sources of revenues and the allocation of these resources to the various programs. WHAT ARE REVENUES? Monies received through taxes, licenses and permits, intergovernmental sources, charges for services, fines and forfeitures, and other miscellaneous sources are called revenues. WHAT ARE EXPENDITURES? Expenditures occur when the City buys goods and/or services and pays its employees. Expenditures can be categorized into three types. operating expenditures, capital expenditures, and debt service expenditures. Operating expenditures are the day to day spending on salaries, supplies, utility services, and contracts. Capital expenditures are generally for acquisition of major assets such as land and buildings or for the construction of streets or other improvements. Debt service expenditures repay borrowed money and related interest. WHAT IS A FUND? The City is financially organized into separate fiscal and accounting entities known as Funds. Each Fund is a separate division for accounting and budgetary purposes. The Fund accounting process allows the City to budget and account for revenues that are restricted by law or policy to a specific use or purpose in accordance with nationally recognized rules of governmental accounting and budgeting. Page 22 of 321 The City of Pasco budgets for approximately 38 separate Funds. Each Fund can be viewed as a separate checking account to be used for a specific purpose. All Funds of the City fall into one of the following major categories. Following is a brief description of these categories. General Fund: The General Fund finances most services that the City provides. This includes law enforcement, fire protection, municipal courts, parks and recreation, community development and administrative activities. The General Fund is, essentially, a "catch-all" fund for accounting for City operations that are not required to be accounted for in a separate fund. The General Fund receives all of the property taxes, except those that are voter approved for the repayment of debt. Special Revenue Funds: The City uses Special Revenue funds to account for revenues that must be used by law for specific purposes. An example is the City Street Fund and Arterial Street Funds that account for gasoline taxes received that can only be used for maintenance and improvements to roads and streets. Debt Service Funds: The Debt Service funds are used to account for the accumulation of resources for the repayment of monies borrowed through voter approved general obligation bond sales and the related interest. Construction Funds: The Construction fund is used to account for the accumulation of resources to fund construction projects related to general government. Utility related construction is included in the Enterprise Funds. Enterprise Funds: The Enterprise Funds are established to account for operations that are financed and operated in a manner similar to private business with the intent that the cost of the goods or services provided will be recovered primarily through user charges. The Water/Sewer Utility bund is the City's only fund in this category. Internal Service Funds: Internal Service Funds are used by the City to account for the financing of goods and/or services provided by one department or fund to another department or fund of the City on a cost reimbursement basis. For example, the City uses the Equipment Rental Funds to purchase and maintain vehicles used by the various departments and funds. Each department or fund pays rent to the ER Fund to use that equipment. Trust and Agency Funds: These fiduciary type funds are used to account for assets held by the City on behalf of outside parties, including other governments, or other funds within the City. For example, the Cemetery Trust Fund holds a portion of the proceeds from the sale of grave sites in order to provide ongoing grounds maintenance and care of the facility. WHY USE FUNDS? Reason 1: Fund accounting is required by the State of Washington. State law governs how local governments will account for revenues and expenditures. All local governments are audited annually by the State Auditor's Office to ensure that they have followed all the accounting rules. Page 23 of 321 Reason 2: When a local government receives funding from the State or the Federal government in the form of a grant, the entity must account for those dollars in the manner prescribed by law. Reason 3: When a local government goes to the financial markets to borrow money, they must provide financial statements that show their financial condition. Financial institutions and investors will loan money to the local entities only if they can demonstrate the ability to repay the debt. Reason 4: Pasco, like all local government entities nationwide, use fund accounting because this system is the standard prescribed by national organizations that govern accounting rules and regulations. The principles used to account for businesses, called Generally Accepted Accounting Principles (GAAP), are established by the Financial Accounting Standards Board (FASB). Similarly, the principles used to account for governmental finances are established by the Governmental Accounting Standards Board (GASB). ORGANIZATION OF THE BUDGET DOCUMENT The document is structured to provide the reader with increasing levels of detail at whatever depth desired. Major sections of the budget are as follows: The City Manager's Budget Message provides an executive overview of key policies, programs, and significant financial changes in the budget for the ensuing year. The Summary Schedules comprise the next section of the City budget. These schedules summarize revenues and expenditures by fund and by major category. Some of the funds or departments contain informational narrative and an organizational chart that includes a table of departmental personnel. The Capital Improvements Projects section lists capital improvements projects budgeted for the year. The Appendix section includes information on historical and estimated property taxes and debt; pay schedules; and a glossary. SUMMARY OF THE BUDGET PROCESS The City of Pasco's budgetary process follows the provisions of the Revised Code of Washington (RCW), Chapter 35.33. During the spring and summer month's departments begin preparation of their budget request for the coming year. Throughout this process meetings are held with appropriate staff and with the City Manager to review the budget requests. After compiling the data, the Preliminary Budget document is prepared. This document is made available for public review in the City Clerk's office after November 1. Page 24 of 321 The proposed budget includes the annual operating expenditures and estimated revenues, as well as the current period appropriation of the City's six year Capital Improvements Projects (CIP). The CIP matches available revenue sources with various street and parks projects, as well as water and sewer system improvements and other capital improvements. It is formally updated on an annual basis, although it is recognized that the program is continually updated and modified on an ongoing basis. The CIP is a flexible, dynamic tool that encourages long-term decision-making and assures the continuity of Council goals and objectives. The CIP is reviewed by the City Council and usually adopted in October. The capital projects for the upcoming year are included in the annual budget and formally adopted in December. The budget for governmental funds is prepared on a modified accrual basis of accounting in conformity with generally accepted accounting principles (GAAP). The budget for proprietary funds is prepared on an accrual basis, also in accordance with GAAP. During November, the City Manager presents the proposed (preliminary) budget to City Council in a workshop session. Public hearings are conducted and the budget ordinance is given first and second readings at regular City Council meetings. Final adoption of the budget occurs after the second reading of the budget ordinance. State law directs the budget adoption by December 31. The adopted budget constitutes the legal authority for expenditures. The level of control at which expenditures may not legally exceed appropriations is the fund. Revisions that alter the total expenditures of any kind must be approved by the City Council and adopted by ordinance. The City's budget is amended once during the year before year-end. All appropriations, except for capital projects, lapse at the end of the year. Page 25 of 321 CITY MANAGER (509) 545-34041 Fax (509) 545-3403 P. O. Box 293, 525 N. 3`d Avenue, Pasco, WA 99301 Honorable Mayor and Council: On behalf of the entire management team, I am pleased to submit to you the preliminary budget for fiscal year 2016. As required by state law, revenues and expenses proposed in the preliminary 2016 budget are balanced in all funds. The proposed budget was developed in support of the adopted City Council Goals, current and projected service and infrastructure needs and is reflective of current and projected economic conditions impacting the City. INMODUCTION As proposed, the preliminary 2016 budget presents a plan for the allocation of public resources toward a variety of City programs, activities and projects necessary to promote the physical security of our community, enhance the quality of life of our residents, support our businesses, promote public investment in our community in the form of capital improvements and strategic planning and private investment in the form of economic development. To further enhance transparency, considerable attention has been given to the budgeting process and this document to better reflect the allocation of resources to the appropriate cost centers. This practice will serve to increase accountability to the citizenry and make it easier to track the performance of various City programs. There are a number of high value capital projects proposed within the budget, some of the more non -routine and transformative ones are as follows: Police Community Services Facility: Much was accomplished in 2015 to move this important project forward; design was completed, the project was bid and awarded, financing was secured through limited general obligation bonds and construction is well underway. It is anticipated that the project will be more than 60% complete by the end of 2015; accordingly approximately $2.8 million is proposed to complete the project in 2016. The debt created through completion of this project will be serviced through proceeds generated by the Public Safety sales tax, approved by the voters in 2011, and fulfills the last significant expenditures which were represented to the electorate prior to the election. Completion of the facility is scheduled for mid -year. Cance completed, this state-of-the-art facility will serve as a platform for the Department from which to interact with the community and project modern community policing activities. Fire Station 84 Remodel: Located in the Riverhaven neighborhood, the facility is in an excellent location from an operational standpoint as it is centered in an area experiencing high call volumes and longer response times. Aside from the operational need for a station in this area, development of this facility as a station is in strategic alignment with Council's near-term goal of attaining a Class IV community rating from the Washington State Rating Bureau. Page 26 of 321 Built as a volunteer station, this former Fire Protection District No. 3 facility was recently transferred to the City. With upgrading and expansion, the facility has the potential to provide an economical and adequate fourth fire station. For 2016, and consistent with the CIP, staff is proposing that the property be evaluated to determine necessary modifications, estimated costs and, depending on the results, some limited construction to prepare the station and property for use as a professional facility. An amount of $450,000 from the CIP is budgeted for Phase I. Process Water Reuse: The primary project is the result of successfully advocating for capital funding from the state legislature. The expansion of the area served by the City's process water reuse facility combines elements of economic development, water reuse, water quality, groundwater recharge and opportunity for the City's crop circle lessees. The $2.65 million grant from the state, coupled with a planned Federal (EDA) grant of $2 million, and $1 million in private dollars, makes possible the equipment and piping needed to serve an expanded industrial area which will further the development of what is already an impressive food processing industry cluster. Peanuts Park: The strong focus the City Council has put on downtown in recent years has signaled that downtown is a place to visit, shop and even invest. Outreach efforts in 2014 and 2015 yielded considerable information from the public regularly visiting or wanting to visit downtown more. Once a central feature of downtown, Peanuts Park scores high on the minds of community members. The aging park is in need of upgrading, its infrastructure tired and its functionality designed for another era. Geographically, the park is central to much of what is being seen by the community as ground zero for unlocking the potential for a revitalized downtown core. Done well, Peanuts Park will set the theme and tone for the transformation of the downtown core; done poorly, it will be another public park that ages before its time. Accordingly, design of this park must be culturally, thematically and architecturally coordinated with other downtown features like the future Lewis Street Overpass, downtown streetscapes, future Farmers Market structure and the facades of some of the upgraded downtown buildings. With all of the above in play, the proposed budget provides $500,000 for a thoughtful and thorough outreach effort and design of a new Peanuts Park that will light the path for future public and private investment. Broadmoor Area Economic Development Efforts: Located in the western portion of the City, the Broadmoor area north and south of 1-182 holds the potential to become an economic engine that could provide opportunities: food and entertainment; cultural; employment; housing; shopping; and professional services on a regional scale. Development of an area this large in a way that is efficient, attractive, durable and a place people want to be, is not an easy task. Investors want surety and they want to see a plan for how the area will develop and how the City will assure quality. With the high cost of bricks and mortar, the savvy investor today wants to know that those who come after will enhance - not detract - from his/her investment. The proposed budget provides for an area -wide master planning effort and a planned action SEPA at a combined cost of $405,000. The planned action SEPA is a valuable economic development tool. Such a review evaluates the totality of the impacts of buildout consistent with an area -wide plan. For the public this approach provides for greater understanding of the cumulative effects of development of a large area at the beginning, rather than after it is too late, and also allows for much more targeted, better timed and more -effective mitigation of the impacts of future development. For the developer, the approach provides surety of what will be expected, and eliminates costly delay from the project timeline as the environmental work is already complete. Page 27 of 321 GENERAL FUND Revenues Revenue for the City's 2016 general fund is expected to decrease by approximately $2.4 million to $3.5 million from the current year's budget. The decrease is primarily due to the influx of construction dollars to the fund generated by issuance of the General Obligation (G.O.) Bond for the Police Community Services Facility planned and executed in 2015, that the majority of those funds were spent on construction in the current budget year leaving a lesser amount to carry forward into 2016 for completion of the structure. The three major general fund revenue sources are the City's share of property tax, local sales tax and utility tax. A brief synopsis of each for 2016 follows: Property Tax: Moderate gains in new construction and annexation, primarily the Road 80 Annexation, increased assessed valuation in the City by $79,307,800 and $117,581,200 respectively. New construction has slowed relative to recent years, particularly with respect to housing starts; however, 2015 saw an increase over the prior year, particularly in industrial development. The preliminary budget proposes an estimated property tax levy of $7,628,164, rounded up to $7,655,000, for budgeting purposes. This reflects an increase of $469,379 over the 2015 levy amount. The proposed increase in property tax revenue is derived by a combination of enacting the recommended and statutorily allowed 1.0% increase in the City property tax levy and the increases in assessed valuation due to new construction and annexations in 2015. Because the implicit price deflator (lPD) is below 1.0%, enactment of the statutorily allowed 1.0% will require a declaration of substantial need by the City Council. The IPD differs significantly from a regional Consumer Price Index (CPI) in that, unlike the CPI, the IPD is not based on a fixed basket of goods and services in a region, the IPD basket spans the nation and the basket on which it is based changes from year to year with people's consumption and investment patterns. Sales Tax: Sales tax represents the most elastic of the fund's three major revenue sources. With construction continuing to improve, one-time construction sales tax is increasing sales tax proceeds. The regional economy continues to improve modestly and commercial areas are energized. It is anticipated that sales tax revenues will increase over the projected 2015 end -of -year by approximately 3% to a total of $13,145,000. Because of the elasticity of this revenue source, the preliminary budget does not provide for new expenditures equal to the increase. In times of economic growth, it is prudent to build reserves to help weather future economic downturns. This budget proposal seeks to fulfill this axiom. Utility Tax: Planned and anticipated increases in solid waste and electricity rate, as well as City -owned water and sewer, result in a projected increase of approximately 3.0% or $251,000 in additional utility tax revenues. Total utility tax revenues for all public and private utilities subject to the tax are projected to come slightly shy of $8.6 million. Page 28 of 321 The City will enjoy an increase in state shared revenues in 2016. Following the privatization, by initiative, of liquor sales, cities experienced years of decline in liquor excise taxes as they were reduced by the legislature to fund other priorities. Through the efforts of many, the 2015-2017 state budget (ESSB 6052), passed by the 2015 legislature has returned the percentage distribution to pre -2013 state budget provisions, which means that 35% of revenues collected under RCW 82.08.150(1) and (2) are to be deposited in the liquor excise tax fund to be distributed to counties, cities, and towns. The restoration of this allocation results in the return of roughly $175,000 annually for use at the local level. Restoration of state shared revenues was a plank in the City Council's legislative agenda. Fines and forfeitures declined in 2015 as Police staffing levels were low and emergent matters served to redeploy staff from regular duties for large periods of time. It is anticipated that these revenues will return to historic per capita levels. A change in the City's investment strategy for 2015 yielded greater returns, as staff ramps up investment in secure government backed instruments we anticipate continued improvement. Expenses General fund expenses and transfers out for 2016 are anticipated to total $46,658,972. This represents a decrease by $2.8 million from the amended 2015 budget. Similar to the decrease in revenues, the Police Community Services Facility is driving a large part of the decrease in budgeted transfers out. Also impacting overall general fund expenditures is a reallocation of Fire personnel to the Ambulance Utility coupled with an ambulance rate increase, which lessens the subsidy along with personnel enhancements proposed for 2016 for public safety and public safety support positions. As introduced above, looming large in the 2016 preliminary budget, as a key Council policy decision, is the interrelation between the Fire budget and the Ambulance Utility. For greater transparency in reporting and rate equity fairness, major changes are proposed for 2016. Historically the General Fund budget provides for a programmed $420,000 annual subsidy to the Ambulance Utility. In past years, the general fund subsidy has regularly been increased toward the end of the fiscal year to reflect actual conditions; the subsidy was increased in 2012 and 2013 to $890,000 and $1,157,000 respectively. The $420,000 subsidy was established by statue; however, within the past several years, state law has changed such that the City would not be required provide such a subsidy. The 2016 preliminary budget recommends maintaining the $420,000 subsidy. In furthering transparency and sustainability, the preliminary budget is presented in a manner that more accurately allocates costs to the proper cost centers. The 2016 preliminary budget recommendation provides for a general fiend subsidy to the ambulance utility of $420,000 and proposes an increase in the monthly ambulance rate (along with a decrease in transport fees) sufficient to render the utility otherwise sustainable. A cost -of -service study of the Fire and Ambulance functions conducted this year by the consulting firm of Financial Consulting and Services Group (FCSG) of Redmond, Washington revealed that on a pure cost -of -service basis of the services Fire and Ambulance personnel provide to the public, 73% of the time spent by the Department is spent on emergency medical services. Put in terms of dollars, to fully fund emergency services provided by the Department Page 29 of 321 through the ambulance utility, fund revenues and expenditures would have to increase from the current amount of $3.8 million to approximately $7 million Fire budget expenditures reduced correspondingly. Stated alternatively, the true subsidy of the ambulance utility is on the order of $3.2 million, in the form of cash and misallocated personnel and equipment. The integrated operation of Fire and Ambulance services provides for an economy of scale that benefits the taxpayers and ambulance ratepayers. Crews from Fire are available to supplement emergency medical responses and visa -versa. While emergency medical calls represent almost three-quarters of the work performed by the Department, there is sound logic as to why the ambulance utility should not capture 100% of its costs from the ratepayer. So, what is a fair cost recovery model for the ambulance utility? Utilizing a modified cost -of -service model, staff determined as follows: ■ Staffing a paramedic position 24 hours per day 365 days per year requires a minimum of five FTEs for each FTE on a shift • Each ambulance requires two full-time paramedics under the City's staffing plan ■ The City currently operates three medic units, one per station This calculates to a need for 24 paramedics where currently 18 are budgeted. The preliminary 2016 budget reallocates 5 paramedics, 1.5 Battalion Chiefs and 0.5 of the Assistant Fire Chief and adds 2 paramedics and 1 billing clerk. This accounting of positions provides a much more accurate picture of the cost to operate the utility. The three additional positions are needed for staffing reliability, overtime reduction and billing coordination. The general fund budget is correspondingly decreased to account for the reallocations. To achieve these reallocations the monthly ambulance utility will have to increase to $12.65, an increase in the monthly fee of $4.90 over the current rate $7.75. Even with the increase, the ambulance utility still requires a healthy general fund subsidy of $420,000. In addition, the budget recommends a reduction in the resident transport rate from the current amount of $700, to $550 per incident. The table below, from the cost -of -service analysis, provides a snapshot of the actual cost of emergency services. You will note the true subsidy to the ambulance fund from a cost -of -service standpoint is currently on the order of $3.2 million. To achieve full cost recovery from ambulance -related rates and fees, an increase of the monthly ambulance fee from $7.75 to $21.13 would be required. The 2016 preliminary budget recommendation rejects the full cost recovery model by taking into account the mutual benefit created through joint Fire and Ambulance services. Under the recommended model, the ambulance utility would recover two-thirds of its actual cost -of -service through rates and fees, and one-third from general fund subsidy. Page 30 of 321 Cost Recovery 2015 Current Cost Recovery 2015 Full Cost Recover 2016 Proposed at 213 Recove Monthly Fee $7.75 $21.13 $12.65 Annual Fee $93.00 $253.51 $151.75 Total Annual Cost $7,034,687 $7,034,687 $7,764,249 Annual in City Cost $6,952,555 $6,952,555 $7,714,990 Revenue Network Specialist 1 Growth in tech support for Police and Fire Ambulance Utility Fee $2,000,000 $5,790,137 $3,466,019 Transportation Fees $1,027,835 $1,027,835 $1,310,835 Miscellaneous Fees -$3,050 -$3,050 -$2,950 Net Out of City Revenue $137,633 $137,633 $170,505 Fund Balance $570,763 $0 $246,908 General Fund Contribution $3,219,374 $0 $2,523,672 Total Revenue $6,952,555 $6,952,555 $7,714,990 Out of Ci Demand Cost $82,131 $82,131 $49,260 total Annual Cost $7,034,687 $7,034,687 $7,764,249 Total General Fund Contribution $352191374 $21523,672 General Fund Savings $0 $3,219,374 $695,701 The effect of the rate increase may be muted through an increase in the general fund subsidy beyond the proposed $420,000. However, further subsidy will impact recommended general fund personnel enhancements, as shown in the table below: Proposed Position Number Remarks Street Crimes Unit Officer 1 Supported by Public Safety sales tax Police Detective 2 Growth in caseload School Resource Officer 1 Supported by PSD contract (75% Area Resource Officer 1 Community outreach Fire Training Captain 1 Coordination of Department training requirements Firefighter 2 Reduces overtime by corresponding amount Network Specialist 1 Growth in tech support for Police and Fire Facilities Maintenance Worker 1 Addition of police station and trainin building HRSpecialist 1 Necessary to support staff/recruitment Total 11 Each proposed position includes a brief explanation. To expound, by department: Police: This has been one of the most taxing years in the modern history of the Police Department. Budgeted staffing levels are low and have been decreasing in relation to the population for a number of years. As a result, unallocated time for officers to pro -actively engage in community oriented policing activities has decreased. Chief Metzger recently presented a strategic plan to increase staffing to better address demands for service, but Page 31 of 321 equally as important, to allow for more opportunity for officers and the public to interact outside of a crisis. The strategic plan is a multi-year goal, frankly, to catch up to where the Department should be in terms of staffing. The 2016 proposal is a good start. ■ Area Resource Officer: Provides an additional law enforcement presence working in an almost exclusively pro -active role. This will add to the capacity of the two current AROs and serve to fill an existing gap for patrol in a specific area of the City. • School Resource Officer: Similar to the ARO, the SRO is assigned a specific area, that being the school and surrounding neighborhood. The City and Pasco School District recently amended the interlocal agreement pertaining to SRO services to include an additional officer; the District provides approximately 75% of the funding for SRO officers. ■ Street Crimes Unit Officer: The addition of this position brings the unit to a full staff of five officers. The Unit is designed to operate proactively and has been extremely effective in quickly solving and deterring crimes. The fifth position allows the unit greater capacity and effectiveness. This position is proposed to be funded from Public Safety sales tax proceeds. • Investigations: The two Detectives proposed are necessary to handle current caseload. One Detective has been added to the Investigations Division since 1990. During that same period the population of the City has increased by almost 50,000 and caseload has increased correspondingly. While technology has been a tremendous aid in modern detective work, it also has created new areas where crime did not exist 25 years ago. Computer forensics has become a significant growth area and requires special skills and training. Fire: The good news here is that the Washington State Fire Ratings Bureau recently conducted its evaluation of the City and is poised to make official that the Community Rating will remain a. Class V. This is a huge victory for the City and is due to some of the strategic enhancements Council approved in the 2015 budget. Nonetheless, like Police, the Fire Department has seen little growth in staffing relative to the increase in population. A total of four Firefighter positions were added in 2015. As Council will recall, one was the addition of a Firefighter that would allow for the Battalion Chiefs to respond to incidents in a command vehicle (as opposed to an engine) and to act as Incident Commanders rather than Engine Captains. Three Firefighters were hired to staff the ARFF vehicle at the airport due to a change in labor rules. The cost of these three positions was offset by an increase in revenue from the Port of Pasco for firefighting services at the airport. ■ Fire Suppression: Two additional Firefighters are proposed to reduce overtime. At current staffing levels, the Department is required to hire 12 hours of overtime each day just to provide minimum staffing for all stations. This does not include overtime needed in the event of injury, illness, vacations or training. The current staffing level is driving overtime in such a way that the addition of these two positions will reduce overtime by the cost of the positions. • Training Captain: The size of the Department, staffing schedule and regulation of the industry requires effort in the coordination of training. Much of this work is being completed by the Acting Assistant Chief (formerly one of the Battalion Chief positions). As a side note the reallocation of one of the Battalion Chief positions as a Page 32 of 321 an Assistant Chief is extremely little in cost, but does positively impact consideration in future community class rating evaluations. ■ Other positions in Fire are reallocated to the Ambulance Utility as described above. The other general fund positions listed in the chart above; Facilities Worker, Network Specialist and Human Resources Specialist are necessary primarily to support Police and Fire operations. The general fund budget also anticipates an increase in general labor costs for settlement of open collective bargaining agreements for the Police, Fire and IUOE bargaining units as well as non - represented personnel. While the agreements are still in the negotiation phase, it is necessary to plan for the likely financial impact of wage and benefit adjustments. In addition to staffing costs, other cost category changes should also be noted. The significant increase in debt service of $980,000 includes payment in full of the Motorola financing of the 800MHz Police radios and the first year of debt service on the Police Community Services Facility. Capital outlays show an insignificant reduction of $6,000 (3.2%) from the amended 2015 Budget. For 2016, there is a $3,657,747 reduction in transfers out which is primarily attributable to the transfers out budgeted for 2015 and 2016 to pay for the construction of the new Police Community Services Facility. Because of timing issues, it is probable that the budgeted transfers out will be amended in 2016. The projected ending fund balance, at $8.4 million represents 20.6% of the budgeted recurring general fund expense, an improvement from 2015 (19.8%) and above the target level of 1.5%. The fund balance provides the necessary cushion of working capital to allow the City to avoid short term borrowing and unexpected expense during the year, as may be authorized by the Council. Page 33 of 321 OTHER FIN. 2C MISC. REVENUE 0.91% FINES & FORFEITURES 1.68% CHARGES FOR SERVICES 13.54% INTERGOVERNMENTAL 4.01% LICENSE' J.l67e OTHER TAXES 2.18% GENERAL FUND RESOURCES 2015 BUDGET $48.007,280 (Excludes Fund Balance) 14.91% SALES TAX 21.64% UTILITY TAX 17.39% GENERAL FUND RESOURCES 2016 BUDGET $44,460,102 (Excludes Fund Balance) OTHER FINANCING MISC. REVENUE 1.02% SOURCES 5.12, FINES & FORFEITURES _ PROPERTY TAX 17.22% 1.97;6 CHARGES FOR SERVICES 14.52% 114TERGOVERNMENTAL 4.77% LICENSES & PERMITS 3.91% SALES TAX 29.58% OTHER TAXES 2.56% UTILITY TAX 19.33`.0 Page 34 of 321 GENERAL FUND EXPENDITURES BY DEPARTMENT- 2015 BUDGET $49,435,080 (Excludes Fund Balance) CITY COUNCIL 0.23% LIBRARY 2.55% MUNICIPAL COURT 3.16% ITY MANAGER 2.61% NON -DEPARTMENTAL 26.60% POLICE 28.88% ENGINEERING 3.724E COMM. DEVELOPMENT 3.07% FIRE 12.90% ADMIN & COMM. SVCS. 16.28% GENERAL FUND EXPENDITURES BY DEPARTMENT- 2016 BUDGET $46,658,972 (Excludes Fund Balance) CITY COUNCIL 0.25% LIBRARY 2.80% MUNICIPAL COURT 3.44% CITY MANAGER 3.10% NON -DEPARTMENTAL 22.2991 POLICE 31.39% ENGINEERING 3.78% COMM. DEVELOPMENT 3,23% ADMIN & COMM. SVCS. 17.74% FIRE 11.96% Page 35 of 321 GENERAL FUND EXPENDITURES BY CATEGORY - 2015 BUDGET $49,435,080 (Excludes Fund Balance) INTERFUND TRANSFERS 19.94% I r. I SALARIES & WAGES 37.87% DEBT SERVICE 1.16% _ CAPITAL OUTLAY 0.40% OTHR SVCS & CHGS 22.46% i SUPPLIES 3.76; PERSONNEL BENEFITS 14.39% GENERAL FUND EXPENDITURES BY CATEGORY -2016 BUDGET $46,658,972 (Excludes Fund Balance) INTERFUND TRANSFERS 13.29% DEBT SERVICE 3.33% CAPITAL OUTLAY 0.41% SALAREES & WAGES 39.07% OTHR SVCS & CHGS 25.42% SUPPLIES 3.06% PERSONNEL BENEFITS 1-5.42% Page 36 of 321 AMBULANCE UTILITY Putting aside for a moment the cost -of -service study conclusions noted above, because of the ever -widening gap between fund expenses and revenues, during the previous budget cycle staff introduced the possiblity of an increase in the monthly ambulance service fee of $0.75 per month in 2015. Knowing a cost -of -service study was to be accomplished in 2016, the rate increase was put aside until the study could be completed. As was explained through considerable narrative above, changes to this utility have a direct impact on the General Fund. The aforementioned cost -of -service study determined the ambulance utility's true general fund subsidy to be on the order of $3.2 million. Capturing this amount through rates alone is not practical nor is it reflective of the mutual benefit derived through the joint operation of Fire and Ambulance. The current practice, however, is not reflective of real costs associated with these two functions. The 2016 preliminary budget proposes a realignment in the allocation of current personnel to the utility, adds two new paramedic positions and recommends a rate that can consistently maintain a $420,000 subsidy based on a two-thirds recovery model as illustrated in the chart above. From a policy perspective, staff recommends the following: ■ Establish two-thirds recovery as a realistic rate objective ■ Increase the monthly ambulance rate by $4.90 per month to $12.65 ■ Maintain a budgeted general fund subsidy of $420,000 per year ■ Reduce the resident transport from the current amount of $700, to $550 per incident As noted previously, the ambulance rate could be reduced through additional general fund subsidy over what is proposed, this would impact other program areas most readily illustrated by this table: Current Recommended Amendment Proposed Positions 2015 Budget 2015 Budget 2016 Budget Fire Chief 0.50 0.50 0.50 Assistant Chief - 0.50 0.50 Battalion Chiefs - 1.50 1.50 Admin. Assistant 0.50 0.50 0.50 Department Assistant - 1.00 1.00 Paramedics 18.00 23.00 27.00 Total positions 19.00 27.00 31.00 Subsidy 420,000 1,375,000 420,000 There are several other municipalities utilizing an ambulance fee rather than an EMS property tax levy. The chart below illustrates where Pasco currently fits as compared to other utilities and how it would subsequent to the proposed rate. Page 37 of 321 A word of caution on such comparisons: while there is a natural curiosity in wanting to know how your agency stacks up to others from a comparison standpoint, the dynamics of communities differ so greatly that it has little to no bearing on the setting of a rate. For instance, the number of Medicare transports differs significantly between the three Tri -Cities, with Pasco transporting the highest in number by far. The transport recovery amount reimbursed by Medicare to the City is a fraction of the fee as set by ordinance; as a result these losses must be absorbed by the utility at a much higher rate than our neighbors. This is just one example of how agencies differ and rates vary so widely. 1110101010 The utility rate evaluation authorized by the City Council earlier this year is complete for Water and Sewer, while Stormwater and Irrigation are not yet complete. In addition, as part of the CIP planning process and through other presentations, information has been shared with the City Council regarding the pressures exerted upon our aging infrastructure and state and federal requirements imposed upon our utilities which require additional outlays on the City's part to remain compliant. The City has engaged the services of FCS to perform rate studies on the Water, Sewer, Irrigation and Storm sub -utilities. The Water and Sewer rate studies were given priority and the recommendation being made by FCS and endorsed by the administration is to increase Water and Sewer Rates by 5% and 9%, respectively for 2016. These increases are reflected in the in the Water/Sewer Fund revenues. The Stonn and Irrigation budgets are balanced based on current rates and a schedule for complexion of the rate analysis has been established for early 2016. Page 38 of 321 Ambulance Rate Comparisons Aberdeen $21.85 Monsanto $18.44 Pasco (Proposed) $1.2.65 Hocluairn $11.83 Moses Lake $11.10 Sunnyside $8.28 Richland $7.81 Pasco $7.75 Ocean Shores $7.48 Mercer Island $8.53 Kennewick $6.67 Port Angeles $6.60 Lynden $6.00 Bridgeport $3.00 A word of caution on such comparisons: while there is a natural curiosity in wanting to know how your agency stacks up to others from a comparison standpoint, the dynamics of communities differ so greatly that it has little to no bearing on the setting of a rate. For instance, the number of Medicare transports differs significantly between the three Tri -Cities, with Pasco transporting the highest in number by far. The transport recovery amount reimbursed by Medicare to the City is a fraction of the fee as set by ordinance; as a result these losses must be absorbed by the utility at a much higher rate than our neighbors. This is just one example of how agencies differ and rates vary so widely. 1110101010 The utility rate evaluation authorized by the City Council earlier this year is complete for Water and Sewer, while Stormwater and Irrigation are not yet complete. In addition, as part of the CIP planning process and through other presentations, information has been shared with the City Council regarding the pressures exerted upon our aging infrastructure and state and federal requirements imposed upon our utilities which require additional outlays on the City's part to remain compliant. The City has engaged the services of FCS to perform rate studies on the Water, Sewer, Irrigation and Storm sub -utilities. The Water and Sewer rate studies were given priority and the recommendation being made by FCS and endorsed by the administration is to increase Water and Sewer Rates by 5% and 9%, respectively for 2016. These increases are reflected in the in the Water/Sewer Fund revenues. The Stonn and Irrigation budgets are balanced based on current rates and a schedule for complexion of the rate analysis has been established for early 2016. Page 38 of 321 Operationally, there are a number of minor positon changes among the various utilities reflected in a change of fund allocation or position classification; e.g. Administrative Assistant rather than Engineering Tech 1, which is essentially a no net cost swap but significantly enhances operational efficiencies. One additional position, Pump Mechanic, is proposed at the Process Water Reuse Facility, and an additional Maintenance Worker is proposed to be added to the Irrigation utility. Both positions will serve to reduce overtime in these functions and increase system reliability. In addition to revenue and operational changes, Council will note that several of the projects from the adopted CIP Plan have been modified to reflect current status, or resource limitations. For instance; the 30 inch diameter Northwest Area Sewer Trunk line has been modified to reflect design and easement acquisition in 2016 with construction in 2017 or 2018. This progress is more on par with what we expect to see occur, and avoid a needless premature additional increase in the sewer rate. SUMMARY As presented, the preliminary budget proposal meets several City Council goals by taking measured, but bold steps, in the public safety budgets and modest steps in other general government and utility budgets to enhance the quality of services we are currently providing. The general fund budget as proposed is a solid step to improving the sustainability of services while putting aside resources to maintain what is built in times ahead when resources shrink. The City provides a wide array of services to the public which require significant revenues in the form of taxes, fees and rates to support. A helpful decision-making filter in considering the value added by the City to its' citizenry, community priorities and the very purpose of this organization is as follows: If the City and its services went away tomorrow, why would the people want us hack? Developing a balanced budget that serves to meet forward -thinking objectives while recognizing there is a need to be prudent in what government asks taxpayers and ratepayers to fiend is not an easy task, making policy decisions on such a budget is a great responsibility. By its very nature the budgeting process involves difficult choices, assigning values and constantly weighing one thing against another. This proposal attempts to maximize value through the efficient provision of services and minimizing the level of taxes and fees paid by citizens. This budget proposal puts Pasco is in the enviable position of being able to sustain quality municipal programs and services to our residents and businesses — quality that makes Pasco a desirable location in which to live and conduct business. The rapid and sustained growth the City has experienced for more than a decade, with demands outpacing resources and staffing levels, presents an ongoing challenge. Events of this year brought more challenges to our Police and Fire staff and to almost every other department in the City as well as to the City Council. The cumulative impact of increasing service demands, aging infrastructure and limited resources has a taxing effect on individuals and workgroups alike; however, the City's workforce continues to pull together, meeting every challenge in generally Page 39 of 321 excellent form. Much of this budget is about sustainability, and what it takes for our organization to begin to achieve this goal. Finally, I want to acknowledge the dedication and service of the City's employees. They are the ones who implement, converting numbers to service and product, without whose efforts our City would be a much different place. I also wish to recognize the City Council, whose collective leadership as policy makers, taking on the arduous task of evaluating the many volumes of information and briefings provided, so collectively they can make the difficult policy calls and direction necessary for this organization to succeed. Lastly, a special thanks to the many skilled and dedicated employees who worked to prepare the 2016 preliminary budget, a much more inclusive process this year, that list is big, but without whose assistance this comprehensive document could not have been developed. Respectfully submitted, Dave Zabe City Manager Page 40 of 321 CITY OF PASCO PRINCIPAL OFFICIALS ELECTED OFFICIALS MAYOR: MATT WATKINS — At Large MAYOR PRO -TEM: REBECCA FRANCIK — District 5 AL YENNEY — District 1 MICHAEL GARRISON — District 2 ROBERT HOFFMANN — District 3 SAUL MARTINEZ — District 4 TOM LARSEN — At Large APPOINTED OFFICIALS DAVE ZABELL — City Manager STAN STREBEL — Deputy City Manager BOB GEAR — Fire Chief BOB METZGER — Police Chief AHMAD +QAYOUMI — Public Works Director RICK TERWAY — Administrative & Community Services Director RICK WHITE — Community & Economic Development Director Page 41 of 321 ORDINANCE NO. AN ORDINANCE ADOPTING THE CITY OF PASCO OPERATING BUDGET FOR THE YEAR 2016. WHEREAS, subsequent to due notice and public hearing thereon, the City Council of the City of Pasco has approved an operating budget for the year 2016; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section One. The following budget containing the totals set forth for each fund for the year 2016 is hereby adopted FUND EXPENDITURE REVENUE 010 GENERAL FUND $ 55,026,463 $ 55,026,463 110 CITY STREET FUND 2,163,721 2163,721 120 ARTERIAL STREET FUND 2,163,231 2,163,231 125 1-182 CORRIDOR TRAFFIC IMPACT FUND 1,530,954 1,530,954 130 STREET OVERLAY FUND 3,782,946 3,782,946 14X COMMUNITY DEVELOPMENT GRANT FUND 1,448,452 1,448,452 145 M.L. KING JR. COMMUNITY CENTER FUND 208,305 208,305 150 AMBULANCE SERVICES FUND 5,660,577 5,660,577 160 CITY VIEW CEMETERY FUND 276,721 276,721 161 BOULEVARD PERPETUAL MAINTENANCE FUND 2,409,232 2,409,232 165 ATHLETIC PROGRAM FUND 247,964 247,964 166 GOLF COURSE 1,846,122 1,846,122 170 SENIOR CENTER OPERATING FUND 312,533 312,533 180 MULTI -MODAL FACILITY FUND 242,316 242,316 182 SCHOOL IMPACT FEES 1,501,800 1,501,800 185 RIVERSHORE TRAIL & MARINA MAINTENANCE FUND 51,681 51,681 188 SPECIAL LODGING ASSESSMENT FUND 414,596 414,596 189 LITTER ABATEMENT FUND 20,501 20,501 190 REVOLVING ABATEMENT FUND 552,800 552,800 191 TRAC DEVELOPMENT & OPERATING FUND 535,349 535,349 192 PARK DEVELOPMENT FUND 1,897,125 1,897,125 193 CAPITAL IMPROVEMENTS FUND REET 1ST QTR 4,204,778 4,204,778 194 ECONOMIC & INDUSTRIAL DEVELOPMENT FUND 1,882,480 1,882,480 195 STADIUM I CONVENTION CENTER FUND 427,386 427,386 24X LID DEBT SERVICE FUND 1,111,597 1,111,597 27X G.O. BOND DEBT SERVICE FUND 250,757 250,757 367 GENERAL CAPITAL PROJECTS 21,447,570 21,447,570 410 WATER 1 SEWER UTILITY FUND 49,066,775 49,066,775 510 EQUIPMENT RENTAL OPERATIONS FUND -GOVERNMENT TYPE 1,080,474 1,080,474 511 EQUIPMENT RENTAL OPERATIONS FUND - PROPRIETARY TYPE 418,256 418,256 515 EQUIPMENT RENTAL REPLACEMENT FUND - GOVERNMENT TYPE 6,894,975 6,894,975 516 EQUIPMENT RENTAL REPLACEMENT FUND - PROPRIETARY TYPE 3,099,080 3,099,080 52X MEDICAUDENTAL INSURANCE FUND 7,179,961 7,179,961 530 CENTRAL STORES FUND 11,829 11,829 605 CITY VIEW CEMETERY ENDOWMENT 484,324 484,324 610 OLD FIREMEN'S PENSION TRUST FUND 2,479,017 2,479,017 619 OLD FIRE MEDICAL (OPEB) 2,617,647 2,617,647 GRAND TOTAL ALL FUNDS $ 184,950,295 $ 184,950,295 Section Two. This Ordinance shall be in full force and effect on January 1, 2016. PASSED by the City Council of the City of Pasco this 30th day of November, 2015. ATTEST: Matt Watkins, Mayor Debra L. Clark, City Clerk Approved as to Form: Leland B. Kerr, City Attorney City of Pasco, Washington Page 42 of 321 2016 Budget City of Pasco, Washington 2 201P ud4gepf 321 CITY OF PASCO 2016 SUMMARIZED REVENUES ALL OPERATING FUNDS INTER- CHARGES LICENSES GOVERN. FOR TAXES & PERMITS REVENUE SERVICES GENERALFUND GENERAL $ 30,533,000 $ 1,738,400 $ 2,122,148 $ 6,457,114 SPECIAL REVENUE FUNDS CITY STREET 237,000 445,000 997,000 - ARTERIAL STREET - - 498,500 5,750 1-182 CORRIDOR TRAFFIC IMPACT - - - 200,000 STREET OVERLAY 919,500 - - - COMMUN. DEVELOPMENT GRANTS - - 1,084,257 - M.L. ICING JR. COMMUNITY CENTER - - - 10,500 AMBULANCE SERVICES - - 1,300 4,991,619 CITY VIEW CEMETERY - - - 205,250 BOULEVARD PERPETUAL MAINTENANCE - - - 90,900 ATHLETIC PROGRAMS - - - 130,850 GOLF COURSE - - - 1,378,607 SENIOR CENTER OPERATING - - 18,500 - MULTI -MODAL FACILITY - - - - SCHOOL IMPACT FEES - - - 1,500,000 RIVERSHORE TRAIL & MARINA MAINT. - - - - SPECIAL LODGING ASSESSMENT 321,000 - - - LITTER ABATEMENT - - - 5,000 REVOLVING ABATEMENT - - - 18,000 TRAC DEVELOPMENT 8 OPERERATION 331,000 - - - PARK DEVELOPMENT - - - 185,000 CAPITAL IMPROVEMENT REET 1ST QTR 1,200,000 - - - INDUSTRIAL DEVEL & INFRASTRUCTURE - - 270,000 STADIUM/ CONVENTION CENTER 331,000 - - - DEBT SERVICE FUNDS LID DEBT SERVICE FUND - - - G.O. BOND DEBT SERVICE FUND 138,000 - - - CONSTRUCTION FUNDS GENERAL CAPITAL PROJECTS - - 9,883,000 - ENTERPRISE FUND WATER 1 SEWER UTILITY - - - 22,324,587 INTERNAL SERVICE FUNDS EQUIPMENT RENTAL OPER. - GOV - - - - EQUIPMENT RENTAL OPER. - PROP - - - EQUIP RENTAL REPLACEMENT - GOV - - - - EQUIP RENTAL REPLACEMENT - PROP - - - - MEDICAL 1 DENTAL INSURANCE - - - 6,160,689 CENTRALSTORES - - - - PERMANENT FUND CITY VIEW CEMETERY ENDOWMENT - - - 15,000 TRUSTFUND OLD FIREMEN'S PENSION - - 51,700 - OLD FIRE MEDICAL (OPER) - - - - TOTAL ESTIMATED REVENUES $ 34,010,500 $ 2,183,400 $ 14,926,405 $ 43,678,866 City of Pasco, Washington 2 201P ud4gepf 321 FINES OTHER INTERAGENCY & BEGINNING TOTAL AND MISC. FINANCING INTERFUND FUND AVAILABLE FORFEITS REVENUE SOURCES TRANSFERS BALANCE RESOURCES $ 876,600 $ 454,840 $ 2,135,000 $ 143,000 $ 10,566,361 $ 55,026,463 - 5,640 - - 479,081 2,163,721 - 2,501,355 100 2,000 - 1,658,881 2,963,231 - 1,000 - 11,829 - 1,329,954 1,530,954 - 3,000 - 47,337 706,000 2,154,446 3,782,946 - 53,700 - 2,577,497 - 310,495 1,448,452 - 36,760 - 120,000 41,045 208,305 - 750 - 420,000 246,908 5,660,577 - 300 - 60,000 11,171 276,721 - 26,496 152,308 - 2,139,528 2,409,232 - 1,150 - - 115,964 247,964 - 282,410 - 185,105 1,846,122 - 38,084 - 250,000 5,949 312,533 - 77,100 - 165,216 242,316 - - - 1,800 1,501,800 - 16,850 - - 34,831 51,681 - - - 93,596 414,596 - 7,500 - 5,000 3,001 20,501 115,500 2,300 - - 417,000 552,800 - 200 - - 204,149 535,349 - 1,800 - - 1,710,325 1,897,125 - 26,000 - - 2,978,778 4,204,778 - 1,051,000 - - 561,480 1,882,480 30,870 - - 65,516 427,386 192,270 - 919,327 1,111,597 - 100 - - 112,657 250,757 - - 71,000 11,131,000 362,570 21,447,570 187,968 12,294,000 - 14,260,220 49,066,775 - 1,044,074 - - 36,400 1,080,474 - 317,506 - - 100,750 418,256 - 1,367,612 496,606 - 5,030,757 6,894,975 597,725 - - 2,501,355 3,099,080 2,000 - 1,017,272 7,179,961 - - - 11,829 11,829 - 100 - - 469,224 484,324 - 47,337 - - 2,379,980 2,479,017 - 40,150 - - 2,577,497 2,617,647 $ 992,100 $ 5,914,692 $ 15,148,914 $ 12,835,000 $ 55,260,418 $ 184,950,295 Page 44 of 321 City of Pasco, Washington 3 2016 Budget CITY OF PASCO 2016 SUMMARIZED EXPENDITURES ALL OPERATING FUNDS Page 45 of 321 2016 Budget OTHER SALARIES PERSONNEL SERVICES & WAGES BENEFITS SUPPLIES & CHARGES GENERAL FUND: CITY COUNCIL $ 87,594 $ 11,444 $ 1,000 $ 14,285 MUNICIPAL COURT 809,494 386,263 41,100 370,143 CITY MANAGER 834,033 333,453 23,000 257,122 POLICE DEPARTMENT 7,527,709 2,603,938 424,395 4,087,008 FIRE 3,571,129 972,163 196,184 772,871 ADMINISTRATIVE & COMM. SE 3,416,718 1,437,709 629,731 2,681,333 COMMUNITY DEVELOPMENT 881,755 420,157 18,750 186,863 ENGINEERING 1,105,524 469,891 25,350 164,456 LIBRARY - - 12,500 1,292,700 NON -DEPARTMENTAL - - 55,000 2,593,832 TOTAL GENERAL FUND 18,233,956 6,635,018 1,427,010 12,420,613 SPECIAL REVENUE FUNDS: CITY STREET 580,522 283,082 179,300 1,073,477 ARTERIAL STREET - - - 13,260 1-182 CORRIDOR TRAFFIC IMPACT - - - STREET OVERLAY - - - 836,242 COMMUN. DEVELOPMENT GRANTS 63,255 26,952 1,500 493,690 M.L. KING JR. COMMUNITY CENTER 66,089 30,496 7,000 66,833 AMBULANCE SERVICES 2,993,627 833,654 220,878 1,471,892 CITY VIEW CEMETERY 86,142 28,198 51,000 101,871 BOULEVARD PERPETUAL MAINTENANCE - - - - ATHLETIC PROGRAMS 26,045 5,969 44,280 62,801 GOLF COURSE - - 5,000 1,525,134 SENIOR CENTER OPERATING 141,693 56,409 6,300 103,304 MULTI -MODAL FACILITY - - 9,000 49,382 SCHOOL IMPACT FEES - - 1,500,000 RIVERSHORE TRAIL & MARINA MAINT - - 10,859 SPECIAL LODGING ASSESSMENT - - 202,067 LITTER ABATEMENT - 15,905 REVOLVING ABATEMENT - 40,019 TRAC DEVELOPMENT & OPERATING - 250,000 PARK DEVELOPMENT - 25,000 CAPITAL IMPROVEMENT REET 1 ST QTR - - INDUSTRIAL DEVEL & INFRASTRUCTURE - 115,001) 528,385 STADIUM f CONVENTION CENTER - - 135,842 DEBT SERVICE FUNDS: LID DEBT SERVICE - - - - G,O. BOND DEBT SERVICE - - - CONSTRUCTION FUNDS: GENERAL CAPITAL PROJECTS - - - - ENTERPRISE FUNDS: WATER 1 SEWER UTILITY 3,566,435 1,676,042 1,980,410 8,996,524 INTERNAL SERVICE FUNDS: EQUIPMENT RENTAL OPER. - GOV 200,157 93,778 552,95D 156,854 EQUIPMENT RENTAL OPER. - PROP 87,031 40,788 224,60D 63,815 EQUIP RENTAL REPLACEMENT - GOV - - - - EQUIP RENTAL REPLACEMENT - PROP - - - MEDICAL / DENTAL INSURANCE - - 5,432,407 CENTRAL STORES - - 500 - PERMANENT FUNDS: CITY VIEW CEMETERY ENDOWMENT - - - TRUST FUNDS: OLD FIREMEN'S PENSION 108,900 - - 31,039 OLD FIRE MEDICAL (OPEB) - 105,039 - 28,786 TOTAL ALL FUNDS $ 26,153,852 $ 9,815,425 $ 4,824,728 $ 35,636,001 City of Pasco, Washington 4 Page 45 of 321 2016 Budget Page 46 of 321 City of Pasco, Washington 5 2016 Budget ENDING INTERFUND CAPITAL DEBT FUND TRANSFERS OUTLAY SERVICE BALANCE TOTAL $ $ - $ 114,323 - - 1,607,000 - - 1,447,608 - - 14,643,050 78,000 - 5,590,347 111,700 - 8,277,191 - - 1,507,525 - - 1,765,221 - 1,305,200 6,201,000 - 1,551,675 8,367,491 18,768,998 6,201,000 189,700 1,551,675 8,367,491 55,026,463 - 40,600 - 6,740 2,163,721 1,785,000 - 364,971 2,163,231 256,000 - 1,274,954 1,530,954 967,000 - 1,979,704 3,782,946 414,000 - 449,055 1,448,452 - - 37,887 208,305 49,500 91,026 5,660,577 - - 9,510 276,721 75,000 - 2,334,232 2,409,232 - 108,869 247,954 - 315,988 1,846,122 - 4,827 312,533 - 183,934 242,316 - - 1,800 1,501, 800 - 40,822 51,681 212,529 414,596 4,596 20,501 - - 512,781 552,800 - - 285,349 535,349 675,000 - 1,197,125 1,897,125 1,997,000 - - 2,207,778 4,204,778 465,000 - 485,457 288,638 1,882,480 - - 127,188 164,356 427,386 - - 101,172 1,010,425 1,111,597 - - 122,300 128,457 250,757 - 20.110,OD0 - 1,337,570 21,447,570 - 20,532,000 5,682,916 6,632,448 49,066,775 - - 76,735 1,080,474 - - - 2,022 418,256 - 1,662,710 - 5,232,265 6,894,975 - 442,000 - 2,657,080 3,099,080 - - 1,747,554 7,179,961 - 11,329 11,829 - - 484,324 484,324 2,339,078 2,479,017 - - - 2,483,822 2,617,647 $ 12,835,000 $ 43,026,510 $ 8,070,708 $ 44,588,071 $184,950,295 Page 46 of 321 City of Pasco, Washington 5 2016 Budget SOURCE OF REVENUE TAXES: GENERALPROPERTY RETAIL SALES TAX B&OTAXES Natural Gas Solid Waste Cable TV Telephone Electricity Water Irrigation Sewer Stormwater PWRF Gambling EXCISE TAXES Leasehold Admissions Tax LICENSES AND PERMITS: BUSINESS LICENSES RENTAL LICENSES BUILDING PERMITS ANIMAL LICENSES OTHER INTERGOVERNMENTAL: GRANTS STATE SHARED REVENUES PUD Privilege Tax City -County Assistance SST Mitigation Criminal Justice DUI -Cities Liquor Excise Tax Liquor Board Profits CITY OF PASCO REVENUE SUMMARY GENERALFUND 2013 2014 2015 2015 2016 BUDGET -CM AMENDED State level -CM BUDGET as of ACTUALS as of NP ACTUAL ACTUAL 9130 9130 $ 6,603,373 $ 7,030,718 $ 7,159,507 $ 3,993,278 $ 7,655,000 10,797,407 11,938,203 10,390,765 9,565,657 13,145,000 532,336 697,283 680,000 577,891 680,000 493,395 505,620 5D0,000 394,405 540,000 383,497 455,315 408,000 326,368 440,000 1,563,635 1,622,260 1,495,000 1,062,448 1,400,000 3,405,021 3,552,160 3,606,000 2,766,443 3,750,000 608,270 689,583 663,000 530,563 750,000 78,209 94,197 97,000 86,395 100,000 588,007 587,005 624,000 452,403 660,000 85,363 95,506 109,000 81,273 107,000 109,096 163,732 165,000 126,197 168,000 736,755 732,127 696,000 585,587 778,000 203,602 202,285 205,000 156,278 205,000 157,173 157,691 145,000 106,143 155,000 26,345,139 28,523,685 26,945,272 20,811,329 30,533,000 329,916 329,854 331,200 320,215 332,900 59,556 64,072 60,800 63,649 64,000 915,423 1,014,227 1,000,000 885,904 1,150,000 177,496 166,471 168,000 171,010 172,000 15,609 13,203 14,500 17,055 19,500 1,498,000 1,587,827 1,574, 500 1.457.833 1,738,400 233,095 316,551 270,170 223,933 230,000 554,567 583.694 625,600 625,638 645,000 93,177 98,635 65,000 89,449 120,000 172,664 173,100 166,000 126,650 140,000 74,574 80,857 72,500 62,908 85,299 11,796 11,746 11,500 7,563 12,000 86,435 113,500 126,000 107,019 302,303 573,141 582,880 588,000 445,415 587,546 1,799,449 1,960,963 1,924,770 1,688,575 2,122,148 CHARGES FOR SERVICE: GENERAL GOVERNMENT 2,272,035 2,738,560 3,327,951 2,260,658 PUBLIC SAFETY 802,313 893,596 1,062,143 781,422 ECONOMIC ENVIRONMENT 1,502,593 1,901,182 1,957,760 1,348,701 CULTURE AND RECREATION 160,747 150,117 150,714 157,789 4,737,688 5,683,455 6,498,568 4,548,570 FINES & FORFEITURES COURT 74,854 73,661 40,650 38,226 TRAFFIC 731,061 699,821 541,000 361,975 NONTRAFFIC 89,392 84,433 201,000 173,343 CONFISCATED MONEY 5,070 10,774 24,000 33,205 900,377 868,689 806,650 606,749 3,734,541 772,548 1,740,525 209,500 6,457,114 70,600 714,000 81,000 Page 47 of 321 City of Pasco. Washinton 6 2016 Budaet SOURCE OF REVENUE 2013 CITY OF PASCO REVENUE SUMMARY GENERALFUND 2014 2015 2015 2016 AMENDED BUDGET -CM BUDGET as of ACTUALS as of State level -CM OTHER FINANCING SOURCES: DEBT PROCEEDS ACTUAL ACTUAL 9130 9/30 2,135,000 MISCELLANEOUS REVENUE: 138,000 138,000 138,000 103,500 143,000 INTEREST EARNINGS 146,679 124,024 274,555 110,494 149,430 RENTS 434,710 280,121 143,910 214,815 277,910 CONTRIBUTIONS - 2,905 2,500 6,141 4,500 OTHER MISCELLANEOUS 43,182 283,691 16,500 42,087 23,000 TOTAL GENERAL FUND RESOUR $ 624,571 690,741 437,465 373,537 454,840 TOTAL GENERAL FUND $ 46,724,877 $ 57,390,441 REVENUE 35,905,224 39,315,360 38,187,225 29,486,593 42,182,102 OTHER FINANCING SOURCES: DEBT PROCEEDS 511,596 1,026,299 9,682,055 9,341,852 2,135,000 TRANSFERS 138,000 138,000 138,000 103,500 143,000 649,596 1,164,299 9,820,055 9,445,352 2,278,000 TOTAL GENERAL FUND REVENUE & OTHER FINANCING SOURCE! 36,554,820 40,479,659 48,007,280 38,931,945 44,460,102 BEGINNING FUND BALANCE 7,573,573 6,245,218 9,383,161 7,955,361 10,566,361 TOTAL GENERAL FUND RESOUR $ $ 46,887,306 $ 55,026,463 44,128,393 $ 46,724,877 $ 57,390,441 Page 48 of 321 City of Pasco, Washinton 7 2016 Budqet CITY OF PASCO EXPENDITURE SUMMARY ALL OPERATING FUNDS Page 49 of 321 City of Pasco, Washington 8 016 Budget 2012 2013 2014 2015 2015 2015 2016 AMENDED ACTUALS AS ACTUAL ACTUAL ACTUAL BUDGET BUDGET OF 9130 BUDGET GENERAL FUND $ 47,583,808 $ 45,999,867 $ 46,753,410 $ 51,707,766 $ 57,390,441 $ 35,751,006 $ 55,026,463 CITY STREET 2,103,683 2,711,959 4,014,129 2,321,354 3,065,354 1,751,684 2,163,721 ARTERIAL STREET 1,411,505 1,611,296 1,916,463 1,157,723 2,003,878 1,857,193 2,163,231 1-182 CORRIDOR TRAFFIC IMPACT FUND 1,156,285 1,235,351 1,254,244 1,311,829 1,419,829 1,344,962 1,530,954 STREET OVERLAY 31833,582 3,385,938 3,833,719 3,628,355 4,060,446 3,495,765 3,782,946 COMMUNITY DEVELOPMENT GRANTS 1,160,881 1,072,641 1,032,163 1,277,619 1,726,118 392,118 1,448,452 M.L. KING JR. COMMUNITY CENTER 180,609 193,782 212,649 205,535 205,535 171,544 208,305 AMBULANCE SERVICES 3,527,777 4,167,956 4,210,994 4,090,250 4,491,245 3,516,639 5,660,577 CITY VIEW CEMETERY 310,609 345,394 360,926 341,604 296,604 234,819 276,721 BOULEVARD PERPETUAL MAINTENANCE 1,878,716 1,987,009 2,127,160 2,191,028 2,209,528 1,885,282 2,409,232 ATHLETIC PROGRAMS 321,437 274,166 263,689 236,398 252,398 216,654 247,964 GOLF COURSE 1,876,799 1,754,335 1,614,563 1,602,560 1,710,765 1,381,028 1,846,122 SENIOR CENTER OPERATING 401;417 329,499 332,473 335,088 335,088 251,410 312,533 MULTI -MODAL FACILITY 119,714 145,746 174,413 189,000 189,000 178,653 242,316 SCHOOL IMPACT FEES 831,615 1,568,697 1,303,133 1,501,900 1,501,900 1,065,448 1,501,800 RIVERSHORE TRAIL & MARINA MAINT 19,477 49,950 $5,110 40,968 40,968 38,040 51,681 SPECIAL LODGING ASSESSMENT 208,744 196,689 269,096 243,906 293,906 211,198 414,596 LITTER ABATEMENT 22,033 19,140 16,529 18,826 18,826 14,643 20,501 REVOLVING ABATEMENT 330,929 391,620 440,378 394,804 456,304 482,772 552,800 TRAC DEVELOPMENT & OPERATIONS 431,122 422,799 571,747 427,149 454,149 396,965 535,349 PARK DEVELOPMENT 1,741,738 1,901,814 2,035,378 2,157,325 2,200,325 2,150,637 1,897,125 CAPITAL IMPROVEMENT REET 1ST OTR 2,986,874 3,285,772 4,354,614 4,463,515 4,854,517 4,722,370 4,2D4,778 ECONOMIC & INDUSTRIAL DEVELOPMENT 2,758,551 2,107,916 3,985,662 2,484,902 2,256,290 3,201,173 1,882,480 STADIUM 1 CONVENTION CENTER 963,103 411,838 799,280 375,402 331,739 722,759 427,386 LID DEBT SERVICE FUND 1,796,983 1,460,228 1,714,590 1,224,351 1,203,851 1,223,298 1,111,597 G.O. BOND DEBT SERVICE 859,642 852,201 482,226 494,294 499,294 417,177 250,757 GENERAL CAPITAL PROJECTS 5,709,184 7,301,825 3,756,888 16,451,908 15,163,997 1,342,600 21,447,570 WATER 1 SEWER UTILITY 30,810,943 37,600,393 33,985,724 39,031,028 42,297,049 27,761,567 49,066,775 EQUIP RENTAL OPERATIONS, GOV 1,206,250 1,127,457 1,096,267 1,203,561 1,203,561 928,226 1,080,474 EQUIP RENTAL OPERATIONS - PROP 510,265 495,409 500,113 470,448 470,448 444,793 418,256 EQUIP RENTAL REPLACEMENT -GOV 4,792,367 5,135,693 5,917,885 6,303,870 6,358,670 4,652,665 6,894,975 EQUIP RENTAL REPLACEMENT - PROP 1,905,335 2,511,223 2,725,216 2,813,972 2,849,537 2,681,004 3,099,080 MEDICAL 1 DENTAL INSURANCE 4,534,780 5,024,346 5,867,861 6,447,401 6,455,915 5,382,908 7,179,961 CENTRAL STORES 13,097 12,845 12,857 12,329 12,329 12,857 11,829 CITY VIEW CEMETERY ENDOWMENT 418,181 435,254 454,552 469,224 469,224 464,120 484,324 OLD FIREMEN'S PENSION 1,904,150 2,306,961 2,433,199 1,560,924 2,849,406 2,420,645 2,479,017 OLD FIRE MEDICAL (OPEB) 2,184,748 2,633,383 2,775,908 1,091,599 2,710,519 205,316 2,617,647 TOTAL ALL FUNDS $ 132,807,153 $ 142,468,392 $ 143,635,208 $ 160,299,715 $ 174,308,953 $ 115,854,138 $ 184T 55� 0,295 Page 49 of 321 City of Pasco, Washington 8 016 Budget CITY OF PASCO GENERAL FUND EXPENDITURE SUMMARY' BY DEPARTMENT GENERAL FUND EXPENDITURE SUMMARY BY CATEGORY 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM DEPARTMENT as of 9130 of 9130 NP CITY COUNCIL $ 108,093 $ 103,864 $ 113,543 $ 79,462 $ 114,323 MUNICIPAL COURT 1,428,265 1,511,595 1,564,015 1,087,033 1,607,000 CITY MANAGER 1,050,327 1,227,992 1,291,940 965,668 1,447,608 POLICE DEPARTMENT 12,295,459 12,586,189 14,271,196 9,691,300 14,643,050 FIRE DEPARTMENT 5,660,321 5,327,428 6,379,042 4,561,563 5,590,347 ADMINISTRATIVE & COMMUNITY SERVICES 6,527,058 7,265,296 8,047,581 5,805,470 8,277,191 COMMUNITY DEVELOPMENT 11252,078 1,451,575 1,518,261 1,088,970 1,507,525 ENGINEERING 1,648,750 1,669,218 1,839,064 1,153,880 1,765,221 LIBRARY 1,181,294 1,220,033 1,261,686 941,500 1,305,200 NON -DEPARTMENTAL 8,603,004 5,007,059 13,148,752 2,420,799 10,401,507 TOTAL OPERATIONS 39,754,649 37,370,249 49,435,080 27,795,645 46,658,972 ENDING FUND BALANCE 6,245,218 9,383,161 7,955,361 7,955,361 8,367,491 TOTAL EXPENDITURES $ 45,999,867 $ 46,753,410 $ 57,390,441 $ 35,751,006 $ 55,025,453_ GENERAL FUND EXPENDITURE SUMMARY BY CATEGORY City of Pasco. Washington 9 20as�Bdg of 321 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM CATEGORY as of 9130 of 9130 NP SALARIES AND WAGES $ 16,974,605 $ 16,378,414 $ 18,725,541 $ 13,102,667 $ 18,233,956 PERSONNEL BENEFITS 5,950,355 6,469,816 7,112,139 5,054,960 7,195,274 SUPPLIES 755,820 1,249,730 1,858,774 1,011,690 1,427,010 OTHER SERVICESICHARGES 9,140,216 10,126,907 11,111,828 7,532,678 11,860,357 CAPITAL OUTLAY 309,782 89,612 196,021 830,580 189,700 DEBT SERVICE 1,015,288 457,316 575,030 81,297 1,551,675 INTERFUND TRANSFERS 5,606,583 2,598,454 9,855,747 181,754 6,201,000 TOTAL OPERATIONS 39,754,649 37,370,249 49,435,080 27,795,626 46,658,972 ENDING FUND BALANCE 6,245,218 9,383,161 7,955,361 7,955,361 8,367,491 TOTAL EXPENDITURES $ 45,999,867 $ 46,753,410 $ 57,390,441 $ 35,750,987 $ 55,025,463 City of Pasco. Washington 9 20as�Bdg of 321 CITY OF PASCO ORGANIZATIONAL CHART CITIZENS CITY COUNCIL DEPUTY CITY CITY MANAGER MANAGER COMMUNICATIONS a t - HUMAN RESOURCES P"4% �J-nf t321 COMMUNITY & ADMINISTRATIV MUNICIPAL POLfCE CHFEF FIRE CHIEF ECONOMIC PUBLIC WORKS E & COURTIUDGE DEVELOPMENT DIRECTOR COMMUNITY DIRECTOR SERVICES Flunitiyvl Mwitlptian FINN blt#Grant fnjinaerin� 1 C. m a Division Probarkm F*d A ugnce Plartrf irr< Sutter RKreav On $eNICRS Gp'AtiOns �iirliergnCe Cauft S... ImpetYiortf Water, Sewer lio Faaes Ser»m operati— CnOs' It, FaaYity. SPe"kh Enfmcernent Stonrn w_ Sarvien Irdprd— Utility City Clerk E t Renol & info t' n Replacement Ser -Am FlMntx City of Pasco, Washington 10 P"4% �J-nf t321 INDIVIDUAL GENERAL FUND DEPARTMENTS DRU of 321 City of Pasco, Washington 11 01 B Budget CITY BOARDS AND COMMISSIONS LEOFF DISABILITY BOARD I CIVIL SERVICE COMMISSION I I PARKS & RECREATION ADVISORY I BOARD PLANNING COMMISSION FIREMAN'S PENSION BOARD CODE ENFORCEMENT BOARD City Council CITIZENS OF PASCO CITY COUNCIL CITY MANAGER COUNTY /REGIONAL BOARDS AND COMMISSIONS FRANKLIN COUNTY EMERGENCY MANAGEMENT I HOUSING AUTHORITY I B -F REGIONAL COUNCIL B -F TRANSIT AUTHORITY PUBLIC FACILITIES DISTRICT City of Pasco, Washington 12 P@qq §�, tK l CITY COUNCIL EXPENDITURES 2058@UZ City of Pasco. Washington 13 pf 321 2013 2014 2015 2015 2016 MAYOR 1.00 1.00 1.00 1.00 AMENDED 6.00 6.00 6.00 6.00 TOTAL ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM FUNCTION as of 8130 of 9130 NP SALARIES AND WAGES $ 87,594 $ 87,594 $ $7,594 $ 64,011 $ 87,594 PERSONNEL BENEFITS 10,246 10,657 11,049 7,934 11,444 SUPPLIES 54 441 1,000 - 1,000 OTHER SERVICES/CHARGES 10,199 5,173 13,900 7,517 14,285 CAPITAL OUTLAY - TOTAL EXPENDITURES $ 108,093 $ 103,665 $ 113,543 $ 79,462 $ 114,323 2058@UZ City of Pasco. Washington 13 pf 321 CITY COUNCIL PERSONNEL SUMMARY POSITION NUMBER OF EMPLOYEES 2013 2014 2015 2016 MAYOR 1.00 1.00 1.00 1.00 COUNCILMEMBER 6.00 6.00 6.00 6.00 TOTAL 7.00 7.00 7.00 7.00 2058@UZ City of Pasco. Washington 13 pf 321 amu; L1 C�Municipal Court�i COURT SERVICES SPECIALIST PROGRAMS: JUDGE COU RT ADMINISTRATOR LEAD COURT CLERK E ASST If DEPUTzt D Pasco Municipal Court PROBATION OFFICER PROBATION J CLERK Pasco Miwicipal Court is a court of limited jurisdiction with the jurisdiction to hear certain criminal cases. traffic infractions, non -traffic infractions and parking tickets. 111e city contracts with the City of Mesa and the Port of Pasco Airport to hear their cases as well There are three divisions within the court system. The Probation division monitors those defendants who are placed on active supervision by the Judge at the time of sentencing. All DUI and domestic violence cases are on active probation for 2-5 years. Any defendant can be placed our the probation caseload depending oil the severity of the crime, past criminal history or mental health status of the defendant. Probation tracks each case to ensure that the defendant is complying with each condition of sentence which may include required treatment or res- titution issues. If a defendant is non-con►phant, probation can request a warrant of arrest be ordered or defendant be sununoned to court. The Conununity Service division has two Court Services Specialists responsible for defendant work crews for those persons ordered to perform a detenuined amount of hours as a case condition of sen- tencing. The crews not only assist with graffiti abatement, but also perform many other tasks within the City of Pasco. The Graffiti Abatement Program (GAP) division helps local business owners and city residents with the removal of graffiti from their property. Public areas are also included in locations served by GAP. The crews are the same persons ordered to perforin conuxrunity service hours. 2015 KEY ACCOMPLISHMENTS: Court • The city designed and created a database to track indigent defense representative appointments as a result of U.S. District Court Judge Lasnik's opinion in the Wilber vs. City of Mourn Vernon case. The database provides the number of case assignments per court appointed attorney and the amount of time that attorney spends on each assigned case from first contact information. phone contact, iii -person contact wlretlier at the jail facility for incarcerated clients or the attor- ney's office, motions filed, courtroom time, trial information, and filial disposition. City of Pasco, Washington 14 Ps@* 6,51pft321 • The corm[ began an intensive scanning project. The 2015 goal was to scan all closed DLII cases into the Laser Fiche database. The court has accomplished this goal. • All court staff has been trained to use XI as a central location to access court forms and other pertinent documents such as staff meeting minutes and case destruction list created by the state. Probation • Purchased Caseload Pro, a new WEB based probation case management system to replace the antiquated ACCESS database. The person who had been able to make necessary changes/updates to the ACCESS program was no longer available. Community Service • As of October 3 L. removed 47,300 pounds of garbage within the City of Pasco. 146 tires and 1 refiigerator. • Assisted city departments with numerous undertakings such as setting up for the Cable Bridge Rain, softball fields. boat races, state cross-country meet, Road 54 boat launch grass and tumble- weed removal. and Peanuts Park cleanup. Graffiti Abatement Program • With the reduction of graffiti locations, a beautification effort was established to remove old graffiti cover-ups on light poles, block walls and wood fences. • Maintained aggressive removal of any graffiti either called into police, graffiti hotline, calls fi-om other city staff or located by Court Services Specialists who are familiar with trouble spots as they travel to known graffiti locations. 2016 GOALS AND OBJECTIVES: Court • Scan all files not on active probation with pending issues that may come back before the court. All cases that fit the criteria will be scanned by the end of 2016. • Expand XI database to include all policies and procedures and memos to employees. • Complete and update when necessary, a comprehensive list of all interpreters and add to XI database. • Begin plain paper warrant process to save money and employee time and effort. • Continue to investigate the possibility of becoming a paperless court. Probation • Probation will work with Caseload Pro on case conversion from ACCESS database into the new database which will require con iniunication and hands-on work to complete. • Cross -train court office staff to assist the probation department for those times when probation is short staffed. This also gives a broader -understanding to employees on how probation duties interact with the broader court function. Community Service • Respond timely to city departments requests to clean-up homeless camps and illegal dump sites within the city limits of Pasco. • Remind city departinents of the work crew capabilities in assisting with projects. Graffiti Abatement Program • Continue with beautification effort on graffiti locations with uniformity of one color as opposed to two or more colors at one location_ City of Pasco, Washington 15 edge 321 MUNICIPAL COURT EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET Of 9130 NP FUNCTION as of 9130 SALARIES AND WAGES PERSONNEL BENEFITS SUPPLIES OTHER SERVICES/CHARGES TOTAL EXPENDITURES $ 744,198 $ 784,554 $ 797,995 $ 587,668 $ 809;494 323,895 372,616 375,766 276,950 386,263 33,136 31,402 41,100 21,294 41,100 327,036 323,024 349,154 201,121 370,143 $ 1,428,265 $ 1,511,596 3 1,564,015 $ 1,087,033 $ 1,607,000 City of Pasco, Washington 16 P$qg bjdnf,321 MUNICIPAL COURT PERSONNEL SUMMARY POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2016 JUDGE 0.75 0.75 0.75 0.75 COURT ADMINISTRATOR 1.00 1.00 1.00 1.00 COURT PROBATION SERV SPEC. 1.00 1.00 1.00 1.00 COURT SERVICES SPEC. 2.00 2.00 2.40 2.00 ADMINSTRATIVE ASST. 11 1.00 1.00 1.00 too LEAD COURT CLERK 1.00 1.00 1.00 1.00 DEPUTY COURT CLERK 4.75 4.75 4.75 4.75 PROBATION SERVICES CLERK 2.25 2.25 2.25 2.25 DEPARTMENT ASST. 1 1.00 1.00 1.00 1.00 TOTAL 14.75 14.75 14.75 14.75 City of Pasco, Washington 16 P$qg bjdnf,321 E1111-11 .,_._____________CO EXECUTIVE ASSISTANT City Manager CITY MANAGER DEPUTY CITY MANAGER COMMUNICATIONS SPECIALIST SR. HUMAN RESOURCES ANALYST POLICE CHIEF FIRE CHIEF O E R NOMN& City Manager PROGRAMS: HUMAN RESOURCES MANAGER ADMIN ASST PAYROLL II SPECIALIST ADMINISTRATIVE PUBLIC WORKS & COMMUNITY DIRECTOR SERVICES DIRECTOR The City Manager is the chief administrative officer of the City and provides general oversight of all City operations and programs. The City Manager is responsible to the City Council for: • Implementation of policy and delivery of services through the respective Department Di- rectors. • Formulating recommendations for City Council consideration, including preparation ofthe City's annual Operating and Capital Improvement budgets. Representing the City on interlocal boards, as directed. The City Manager Department includes Human Resources and Communication functions which are supervised by the Deputy City Manager. • Human Resources includes recruitment, employee payroll and benefit administration, civil service, labor relations and safety compliance. • Communications includes public outreach and media relations, City publications, website, social media and operations of the City government access Channel, PSC -TV. 1015 KEY ACCOMPLISHMENTS: • Completed recommendations and draft plan for City Council voting districts. Council ap- proved the plan in March. Continued research and discussions to determine feasibility to conduct district -based elections for Council positions 1-5. • Sale of City property on Sandifiu• Parkway to Bill McCurley for a Subaru dealership was closed in January. The dealership is cun-ently under construction. • Attended and actively listened at the Washington State Commission on Hispanic Affairs events in Pasco, commenced the US Department of Justice Community Relations Service's conciliation process, continued coordination between departments on media relations, and X016 Bu City of Pasco, Washington 17 ag t - of 321 met with various groups and citizens over concerns about the February 10 officer -involved shooting. • Vigorously prosecuted City Council legislative objectives in the Washington State Legis- lature. With valuable assistance frons the City's delegation, Several of the Council's Leg- islative goals were achieved. • Represented the City in the Road 80 Area Annexation Committee meetings and assisted affected residents in developing a document to compare regulations and costs between -unincorporated Franklin County and the City. The annexation became effective on July 1. • Coordinated City public outreach efforts at the Cinco de Mayo celebration regarding. Down- town Pasco and other initiatives. • Prepared and led City team to two Shopping Center conferences to promote economic de- velopment opportunities in the City. This was done in conjunction with other area agencies, such as TRIDEC. • Continued efforts with partner agencies to develop the MATRICS interlocal agreement for improved public safety dispatch and communications. Formal approval of all agencies is expected during the 41, quainter of 2015. • Significantly increased bi-lingual publication of City -generated materials, added language translator fii action to City website. • Worked with Council committee and BDI to prepare new solid waste agreement for full Council consideration. 2016 GOALS: • Assist City Council with the development and adoption of goal statements for 2016-2017. • Foster increased, meaningful citizen engagement with emphasis on outreach efforts to the Hispanic community. • Advance Police Department community relations and service efforts. • Complete negotiations and recommend replacement collective bargaining agreements for three major labor groups_ Police, Fire and Operating Engineers. • Continue to enhance City economic development efforts and opportunities with special emphasis on Downtown Pasco, developing industrial areas, and the growing northwest (Broadmoor) area of the community. • Oversee major development projects as included in the City's Capital Iu-provement Pian. City of Pasco, Washington 18 Po0%�9dgt321 CITY MANAGER EXPENDITURES Qi B'Bu� City of Pasco, Washington 19g get 321 2013 2014 2015 2015 2016 NUMBER OF EMPLOYEES 2014 2015 2016 CITY MANAGER AMENDED 1.00 1.00 1.00 ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM FUNCTION 1.00 1.00 as of 9130 of 9130 NP SALARIES AND WAGES $ 706,209 3 753,884 $ 777,981 $ 567,455 $ 834,033 PERSONNEL BENEFITS 225,159 262,180 270,576 212,178 333,453 SUPPLIES 12,453 15,331 62,886 17,781 23.000 OTHER SERVICESICHARGES 106,506 196,598 180,497 168,254 257,122 TOTAL EXPENDITURES $ 1,050,327 $ 1,227,993 $ 1,291,940 $ 965,668 $ 1,447,608 Qi B'Bu� City of Pasco, Washington 19g get 321 CITY MANAGER PERSONNEL SUMMARY POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2016 CITY MANAGER 1.00 1.00 1.00 1.00 DEPUTY CITY MANAGER 1.00 1.00 1.00 1.00 HUMAN RESOURCES MANAGER 1.00 1.00 1.00 1.00 COMMUNICATIONS SPEC. 1.00 1.00 1.00 1.00 HRANALYSTIASSISTANT 1.00 1.00 LDO SENIOR HR ANLAYST 1.00 1.00 SAFETY (TRAINING SPECIALIST 1.00 1.00 EXECUTIVE ADMIN ASSISTANT 1.00 1.00 1.00 1.00 PAYROLL SPECIALIST 1.00 1.00 1.00 1.00 HR SPECIALIST 1.00 ADMINISTRATIVE ASSISTANT 1 1.00 1.00 1.00 ADMINISTRATIVE ASSISTANT II 1.00 TOTAL 8.00 8.00 10.00 10.00 Qi B'Bu� City of Pasco, Washington 19g get 321 CITY MANAGER POLICE CHIEF ADMIN ASS711 OPERATIONSCAPTAIN RT CAPTAIN I I FIELDCAPTAINIONS I I INVESTIGATIONS LLAp pp IOUCE ADMIN ASST sESvSfRGEAh75 SERGEANTS SPECIALIST P�ucexev+as SRO/ARO POLICE SERGEANTS sPECAusTs OFFICERS OFFICERS SWAT I I SIU I I DETECTIVES CRIME ANALYST METRO CRIME PFMNTIOW tal�sEsrn vioLENr VIOLENCE CRIMES STREET FLEET/ EQUIPMENT CRIMES TRAINING/IA ! i1 I EVIDENCE Police Department PROGRAMS: The Police Department provides the law enforcement function for the City. The Department is responsible for the protection of life and property of citizens through its enforcement of criminal law and traffic ordinances. The Field Operations Division provides first response to citizen complaints, traffic enforcement, maintenance of public order and accident report- ing. The Investigative Services Division handles investigations of more serious criminal offenses. 2015 KEY ACCOMPLISHMENTS: • Exceeded the minimum state required training for each commissioned officer by over 100 horns. Hosted several outside training classes at the training facility, including DOJ. III Improved Public Information and Media Relations. Developed a positive working rela- tionship with each major media outlet. Irnplernented a department Twitter and Facebook account that improved the Department's transparency to the public and media. Directed and authorized patrol supervisors to more expeditiously conununicate with the media, especially during non -business hours. The supervisors have now been tweeting infor- niation on major incidents shortly after they occur. City of Pasco, Washington 20 P@&i9,' gad�t321 • Ongoing review of Department policy manual and updating of policies in the following higtt risk areas, in advance of accreditation process: use of force; firearms and einer- gency vehicle operatloll/purstllls. • Coordinated the transition to 800 MHz radio equipment for all officers and vehicles to transition to a MATRICS dispatch format for police communications. • Completed design and began constn fiction of the new police community services build- ing. This was done within the approved budget. • Updated the Major Crime Protocol used during major events to reflect the best practices in investigations and evidence collection. • Implemented a quarterly audits schedule to randomly audit the evidence room. • Worked with Civil Service and Human Resources to update and improve the hiring of new police officers. 2016 GOALS: • Complete construction of new police community services facility (Council Goal #3). • Complete Police Department accreditation process. • Work with the Council and City Manager to finalize and implement the Strategic Plan as presented in October 2015. • Work with City Manager to finalize and implement MATRICS consolidated dispatch. • Conturue to implement improvements recommended by DOJ. • Continue to enhance cornrnunity policing services as part of the strategic plan. City of Pasco, Washington 21 20 f��u� etof 321 POLICE EXPENDITURES City of Pasco, Washington 22 PageallGQ 1321 2013 2014 2015 2015 2016 NUMBER OF EMPLOYEES 2014 2015 2016 POLICE CHIEF AMENDED ACTUALS as BUDGET -CM level -CM 1.00 ACTUAL ACTUAL BUDGET of 9130 NP FUNCTION 10.00 10.00 as of 9130 10.00 CORPORAL SALARIES AND WAGES $ 6,535,154 $ 6,383,067 $ 7,419,298 $ 5,075,440 $ 7,527,709 PERSONNEL BENEFITS 2,132,425 2,275,077 2,476,299 1,732,367 2,603,938 SUPPLIES 243,691 306,418 613,203 205,488 424,395 OTHER SERVICESICHARGES 3,371,706 3,610,141 3,625,096 2,674,479 4,087,008 CAPITAL OUTLAY 12,483 11,487 137,300 3,526 CRIME SPECIALIST - ANALYST TOTAL EXPENDITURES $ 12,295,459 $ 12,586,190 $ 14,271,196 $ 9,691,300 $ 14,643,050 City of Pasco, Washington 22 PageallGQ 1321 POLICE PERSONNEL SUMMARY POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2016 POLICE CHIEF 1.00 1.00 1.00 1.00 CAPTAIN 2.00 2.00 3.00 3.00 SERGEANT 10.00 10.00 10.00 10.00 CORPORAL POLICE OFFICER 47.00 47.00 47.00 49.00 POLICE OFFICER - DETECTIVE 5.00 5.00 5.00 7.00 POLICE OFFICER - DEAIVCTF DETECT 1.00 1.00 2.00 2.00 POLICE OFFICER - SCU DETECT 3.00 3.00 3.00 4.00 POLICE OFFICER - METRO DETECT _ 2.00 2.00 1.00 1.00 CRIME SPECIALIST - ANALYST 1.00 1.00 1.00 1.00 CRIME SPECIALIST -DOMESTIC VIOL 1.00 1.00 1.00 1.00 CRIME SPECIALIST - EVIDENCE 1.00 1.00 too 1.00 ADMINISTRATIVE ASSISTANT II 1.00 1.00 1.00 1.00 LEAD POLICE SERVS. SPEC. 1.00 1.00 1.00 1.00 POLICE SVCS. SPEC. 4.00 4.00 4.00 4.00 ADMINISTRATIVE ASSISTANT 1 1.00 1.00 1.00 1.00 LEGAL SECRETARY I - METRO 1.00 1.00 1.00 LEGAL SECRETARY II -METRO 1.00 1.00 1.00 1.00 TOTAL 83.00 83.00 84.00 88.00 City of Pasco, Washington 22 PageallGQ 1321 FIRE PROTECTION SPECIALIST TRAINING CAPTAIN CITY MANAGER FIRE CHIEF ASSISTANT CHIEF BATTALION CHIEFS CAPTAINS LIEUTENANTS FIREFIGHTERS ADMIN ASSIST 11 Ambulance & Fire Suppression PROGRAMS. Ambulance • Emergency Medical Services: To provide well -supervised, qualified and professional medical services in accordance with National, State, and Local ordinance and industry standards. • Safety Program: Provide medical safety training and education in accordance with WAC 296- 305 requirements. The EMS Officer serves as the City of Pasco Infectious Disease Control Officer. • Public Education: Provide pre -hospital training and safety education and outreach programs to the City of Pasco residents and the greater Tri -Cities community. • EMS Continuing Education: Provide advanced and basic life support EMS training to depart- ment members as defined by Washington State Department of Health and Benton/Frauldin Pre -Hospital protocols. Page 64 of 321 City of Pasco, Washington 23 2016 Budget Fire • Suppression Program: To provide well -supervised, qualified and professional fire suppression services in accordance with National, State, and Local ordinance and industry standards. • Safety Program: Provide safety training and education in accordance with WAC 296-305 re- quirements • ARFF Program: To provide aircraft rescue and firefighting services to the Tri -Cities Airport in accordance with FAA Regulations Part 139 and applicable advisory circulars, WAC 296- 305 and applicable sections of NFPA 402. • Technical Rescue: Provide technical rescue capabilities as defined by NFPA 1670 and WAC 296-305 in the following disciplines: Rope Rescue, Confined Space, Trench and Excavation, Machinery and Vehicle, Structural Collapse, and Water. • Hazardous Materials: Provide well -supervised, qualified, and professional emergency re- sponse to hazardous materials incidents within the City of Pasco. • Public Education: Provide fire and safety education and outreach programs to the City of Pasco residents. 2015 KEY ACCOMPLISHMENTS: Ambulance • Active Intruder Awareness and Response: The Pasco Fire Department, in collaboration with Pasco Police, has been actively training on dealing with the potential injuries and patient man- agement of this event type during 2015. We developed and completed a full-scale exercise that included over 12 response agencies. We continue to regularly train on this subject with the Police Department. • Inter-agency/department Collaboration: The fire department has developed collaborative re- lationships with surrounding agencies that have improved auto/ mutual aid operations, and in- cident management capabilities. Within the City, the department works collaboratively with the Police Department (see above), Parks and Recreation, Franklin County Sheriffrs Depart- ment and Public Works Department by teaching continuing pre -hospital emergency medical education. • Emergency Medical Training Program: The EMS Division worked collaboratively with the Washington State Department ofHealth Radiological Protection, the Bentom Trankiin Medical Program Director, and Washington State Department of Health —Region 8 in the development of regional EBOLA/Infectious Disease response protocols. • Improvement of EMS Response Quality: The EMS division and Lourdes Medical Center Man- agement staff have been developing a process to monitor and improve patient care quality from initial patient contact by EMS through the patient care processes at the hospital, • Public Outreach: The EMS Division assisted Columbia Basin College with attaining 20 auto- matic external defibrillators. The EMS Division also supports the Pasco School District "Every 15 Minutes" Program_ The Pasco Fire Department provides "mentors" to the Columbia Basin College Paramedic Program. Fire Active Intruder Awareness and Response: The Pasco Fire Department, in collaboration with Pasco Police, has been actively training on this scenario during 2015. We developed and completed a full-scale exercise that included over 12 response agencies. We continue to reg- ularly train on this subject with the Police Department. Inter-agency/department Collaboration: The fire department has developed collaborative re- lationships with surrounding agencies that have improved auto/mutual aid operations, and in- cident management capabilities. Within the City, the department works collaboratively with the Police Department (see above), Parks and Recreation by teaching continuing education, and the Building Department with pre -fire planning. Port of Pasco Contract Negotiation: During Q1 & Q2 of 2015, the Port of Pasco and the fire department successfully concluded negotiations that included identification of actual costs and cost allocation of the ARFF program at the Tri -Cities Airport. Page 65 of 321 City of Pasco, Washington 24 2016 Budget Labor/Management Meetings: During FY2015 both Labor and Management have agreed to regular meetings. To date, these meetings have been successful in opening the lines of com- munications between both organizations. The meetings have been regularly attended by the Department Director and various members of the IAFF Local 1433 Executive Board. Public Fire Education Program: Our public education program supports annual Exit Drills in the Home (over 3000 students were contacted in 2015), bi-annual smoke detector inspection and battery replacement, and business fire escape planning. We have partnered with Pasco School District and participated in 6 reading events to over 270 students and with Benton - Franklin Safe Kids Coalition to host Child Car Seat clinics. 2016 GOALS: Ambulance • Continue with efforts to develop a single dispatching system by working with council and other agencies, and upgrades to the computer aided dispatch system. • Identify options to increase data transfer and validation through the use of electronic patient care reporting systems. • Continue to develop positive and professional working and business relationships with the bargaining unit administration. • Identify options to equitably fund the Advanced Life Support program to other auto/mutual aid agencies, • Continue to improve and expand the Quality Assurance Program with Lourdes Medical Center. Fire • Continue with efforts to develop a single dispatching system by working with council and other agencies, and upgrades to the computer aided dispatch system. • Implement recommendations of findings from the Washington State Rating Bureau reclassi- fication evaluation within the allotted time frames. • Update all station alerting devices to receive automated dispatching as well as ARFF alerts from the Tri -Cities Airport Tower. • Continue to develop positive and professional working and business relationships with the bargaining unit administration. • Identify options to equitably fund the Advanced Life Support program to other auto/mutual aid agencies. • Continue to enhance and develop the response capabilities of the Technical Rescue Program, Page 66 of 321 City of Pasco, Washington 25 2016 Budget FIRE EXPENDITURES Page 67 of 321 City of Pasco, Washington 26 2016 Budget 2013 2014 2015 2015 2016 NUMBER OF EMPLOYEES 2014 2015 2016 FIRE CHIEF AMENDED ACTUALS as of BUDGET -CM level -CM 0.50 ACTUAL ACTUAL BUDGET 9130 NP FUNCTION 3.00 3.00 as of 9130 1.50 TRAINING OFFICER SALARIES AND WAGES $ 4,134,937 $ 3,580,536 $ 4,328,343 $ 3,101,153 $ 3,571,129 PERSONNEL BENEFITS 876,047 947,315 1,072,052 803,245 972,163 SUPPLIES 106,394 121,191 214,673 127,089 196,184 OTHER SERVICES/CHARGES 542,943 623,255 756,453 522,556 772,871 CAPITAL OUTLAY - 55,129 7,521 7,521 78,000 TOTAL EXPENDITURES $ 5,660,321 $ 5,327,426 $ 6,379,042 $ 4,561,564 $ 5,590,347 Page 67 of 321 City of Pasco, Washington 26 2016 Budget FIRE PERSONNEL SUMMARY POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2016 FIRE CHIEF 0.50 0.50 0,50 0.50 ASSISTANCT FIRE CHIEF 0.50 BATTALION CHIEFS 3.00 3.00 3.00 1.50 TRAINING OFFICER 1.00 CAPTAIN 8.00 8.00 7.00 TRAIN/SAFETY BATTALION CHIEF 1.00 1.00 1.00 LIEUTENANT 8.00 3.00 3.00 5.00 FIREFIGHTERS 22.00 19.00 23.00 19.00 ADMINISTATIVE ASSISTANT II 0.50 FIRE PROTECTION SPECIALIST 0.20 DEPARTMENT ASSISTANT II 0.50 0.50 0.50 TOTAL 35.00 35.00 39.00 35.20 Page 67 of 321 City of Pasco, Washington 26 2016 Budget Administrative and Community Services CITY MANAGER ADMINISTRATIVE $ COMMUNITY SERVICES DIRECTOR DEPUTY i ADMIN ASST DIRECTOR II CUSTOMER FINANCE LEGAL INFORMATIO RECREATION SERYMGR MANAGER DEPT CITY CLERK NSERYICES SERVICES FACILITIES MANAGER MANAGER MANAGER UTIUTY ACCOUNnHa BILUNG LEADS NETWORK) RECREATION CHIEF SY5TEM5 SPECIALISTS GROUNDSMEN ACCOUNTIN STA f GCLERK ACOWNrANIS DATABASE/ DEPARTMEN GROUNDSMEN '�L'0'TI� T ASSISTANT CUSTOMER ACCWNIS CpMPlll°ERSB TEMPORARY FACglTLES SERVICE PAYABLEJREC FihRDWARF EMPLOYEES AM1AITITENAIIC GIS CEMETERY FORESTRY PARK PATROL TEMPORARY EMPLOYEES Administrative & Community Services Department PROGRAMS: The Administrative and Community Services Department provides the diverse internal ser- vices necessary to operate or suppoit other City departments efficiently. These divisions in- clude Finance, Information Services, Facilities Maintenance, Records Management and Le- gal Services. In addition, this department delivers certain external services, including_ adult and youth recreation services, senior citizens services and utility customer services. The Finance Division is responsible for providing accurate financial iuforuration and con- sistent customer service to the City organization and citizens. The Accounting section is pri- inarily responsible for the supervision and accountability of City resources through fiscally prudent budgeting, accounting and reporting and inter -office mail services to all City depart- rnents. This section is also responsible for the billing for all monies owned to the City except for water/sewer monthly bills and the payment of all bills. The Customer Service section is responsible for the controlling and receipting of all City revenues, monthly billing for the water/sewer utility and providing customer assistance in all areas.. Pa 68 of 321 City of Pasco, Washington 27 209 Budget The Information Services Division is responsible for the City's computer and telecommuni- cations systems. It develops, implements, and maintains all automated municipal information applications including GIS, remote access points for traffic, utility monitoring; Police and Fire computer services. The Administrative Services Division is responsible for purchasing controls, records man- agement, legal service and City Clerk functions. It also manages the Boat Basin, Gesa Sta- dium and Sun Willow Golf Course. The Recreation Services Division is responsible for the operation and implementation of rec- reational activities in the comnriuuty, including management of Memorial Pool and the Soft- ball Complex. The Facilities Division is responsible for 5 areas: Buildings, Grounds, Cemetery, Urban For- estry and the Park Ranger Program. 2015 KEY ACCOMPLISHMENTS: Finance • Issue 2015 G.O_ and Revenue Bonds • Ambulance and Water/Sewer Rate Study • Motorola -financed purchase of hand radios for PD • Creation and publication of 2016-2021 Capital hriprovement Plan • Issue and submit 2014 CAFR to GFOA Certificate of Achievement Program • Hired new Finance Manager • Changed billing schedule resulting in fewer shut -offs • Assisted in pulling data for Ambulance and Water/Sewer Rate Studies Information Services • Police Department Training Building technology expansion/connectivity • Scada offsite fiber network connectivity to 19 sites • Fire Incident Management laptops • Graffiti camera upgrade • Initial implementation of Citywide Enterprise GIS System • Indigent Case Tracking application Facilities • Developed new Cemetery procedures resulting in better customer service • Replaced two playgrounds including pour -in-place safety surfacing • Improved/reruodeled Police Training Center building appearance and usability for re- gional training • Added maintenance responsibilities for Public Works and Fire Station 82 Recreation • Introduced new programs and marketing at Memorial Pool resulting in highest revenue since the 2010 remodel • Implemented Concerts in the Park Series • Hosted first Mohr -Son and Daddy -Daughter events • Hosted Party in the Park in partnership with Pasco Jaycees Easter event at Chiawana Park • Hosted 19 tournaments at the Softball Complex, surpassed the goal of 16 City of Pasco, Washington 28 Pggt §Wt321 2016 GOALS: Finance • Review and improve internal controls • Review and improve iuterfund charge calculations • Implement usage of the NWS Encumbrance Module • Finalize update of Meter -reading routes • Finalize conversion to NWS Utility Billing Module Information Services • Upgrade/Add 2 additional 1S staff • Implement 24 hour IT support for Police, Fire, PW systems • Expand Cartegraph Work Order System to Water, Streets, Irrigation and Parks • Additional Finer Connectivity to City Offices, SCADA sites and Traffic Controllers • City Enterprise Phone and Voice System upgrade • Implement and support NWS PAF and E -time Suite Modules Facilities • Restructure to accommodate new staff members • Develop 5 year plan for the Cemetery, Facilities and Urban Forestry Recreation • Expand Concerts in the Park Series • Add Bubble Soccer to programs offered • Host 2016 All -Senior Picnic (rotates every 3 years with Richland and Kennewick) • Continue to diversify and expand offerings at Memorial pool to increase attendance and revenue City of Pasco, Washington 29 2019Budget 321 ADMINISTRATIVE & COMMUNITY SERVICES EXPENDITURES ADMINISTRATIVE & COMMUNITY SERVICES PERSONNEL SUMMARY 2013 2014 2015 2015 2016 ADMIN & COMM SVCS DIR. 1.00 1.00 AMENDED ACTUALS as of BUDGET -CM level -CM ACTUAL ACTUAL BUDGET FINANCIAL SERVICES MANAGER 1.00 FUNCTION 1.00 1.00 as of 9130 9130 NP SALARIES AND WAGES $ 2,869,250 $ 2,971,409 $ 3,260,885 $ 2,381,332 $ 3,416,718 PERSONNEL BENEFITS 1,107,900 1,236,373 1,370,747 975,694 1,437,709 SUPPLIES 298,489 705,900 807,012 595,337 629,731 OTHER SERVICESICHARGES 2,130,350 2,328,619 2,557,737 1,782,857 2,681,333 CAPITAL OUTLAY 101,069 22,996 51,200 70,250 111,700 TOTAL EXPENDITURES $ 6,527,05B $ 7,265,297 $ 8,047,581 $ 5,805,470 $ 8,277,191 ADMINISTRATIVE & COMMUNITY SERVICES PERSONNEL SUMMARY POSITION _ 2013 NUMBER OF EMPLOYEES 2014 2015 2016 ADMIN & COMM SVCS DIR. 1.00 1.00 1.00 1.00 ADMIN & COMM SVCS DEPUTY DIR. 1.00 FINANCIAL SERVICES MANAGER 1.00 1.00 1.00 1.00 INFORMATION SVCS MGR 1.00 1.00 1.00 1.00 RECREATION SERVICES MGR 1.00 1.00 1.00 1.00 FACILITIES MGR 1.00 1.00 1.00 1A0 CUSTOMER SERVICE MANAGER 1.00 1.00 1.00 1.00 LEAD ACCOUNTANT 2.00 2.00 2.00 1.00 CHIEF GROUNDSMAN 1.00 2.00 2.00 2.00 CITY CLERK 1.00 1.00 1.00 1.00 NETWORK ADMINISTRATOR 1.00 1.00 1.00 1.00 GIS ADMINISTRATOR 1.00 1.00 1.00 DATABASE ADMINISTRATOR 1.00 1.00 1.00 GROUNDSMAN I 7-50 7.50 8.50 8.50 FACILITIES MAINTENANCE 1 1.00 1.00 1.00 2.00 STAFF ACCOUNTANT 2.00 2.00 2.00 2,00 LEAD RECREATION SPECIALIST 1.00 1.00 1.00 1.00 PC SPECIALIST 2.00 2.00 2.00 3.00 APPLICATIONS SPECIALIST 1.00 1.00 1.00 LEGAL SECRETARY/PARALEGAL 1.00 1.00 1.00 1.00 RECREATION SPECIALIST 1.00 1.00 1.00 1.00 GROUNDSMAN II 1.00 too) 1.00 1.00 ACCOUNTING CLERK 0.75 1.00 1.00 1,00 ADMINISTRATIVE ASSISTANT II 1.00 1.00 1.00 1.00 DATABASE SPECIALIST 2.00 INFORM SVC TECHNICIAN - GIS 0.75 0.75 1.00 1.00 DEPARTMENT ASSISTANT II 9.00 10.00 10.00 10.00 DEPARTMENT ASSISTANT 1 1.00 TOTAL 42.00 44.25 45.50 47.50 City of Pasco, Washington 30 PSR � JdV jtK l .l ! C`I Development BLOCK GRANT ADMINISTRATOR PROGRAMS: CITY MANAGER COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR ADMIN ASST 11 CITY PLANNER f ASSOCIATE 4 PLANNER PLANNER I INSPECTION SERVICES MANAGER CODE BUILDING ENFORCEMENT INSPECTORS PLANS EXAMINER OFFICERS PERMIT TECHNICIANS Community & Economic Development Economic Development fosters growth of existing business, attraction of new business and po- sitioning the cornnnunity for expansion of the tax base through planned provision of appropriate land use, utilities and assistance in project permitting. Community Plaiming provides predictability in zoning, subdivision, annexation and development and aesthetic regulations through the administration of State Environmental Policy Act, Growth Management Act and Pasco Municipal Code_ Inspection Services protects community health and safety through the provisions of the Interna- tional Building Codes by construction plan review, building and fire inspections, and code and nuisance enforcement. Community Development Block Grant administers the City's entitlement Federal grants to ad- dress the City's conununity development, revitalization and housing needs that directly benefit low and moderate income persons and families. 190 W11a I W613. • Implemented the Fire Safety Inspection Program consistent with Council approval parame- ters. • Implemented an emergency relocation program for tenants displaced as a result of substand- ard housing vacate orders. City of Pasco, Washington 31 foyp@,�pl 321 • Annexed that portion of the Riverview County Island west of Road 80 consistent with Coun- cil 2014-2015 Goals. In a related task, and with Council approval, instituted the use of Out- side Utility Agreements for the provision of municipal sewer service outside City limits. • Successfully corroborated with our economic development partners to attract an estimated $75 million in industrial investment to the community in 2015. • Used and reused funds through the Neighborhood Stabilization Program to reclaim 16 fore- closed residences, including the purchase and resale of 4 homes and the provision of down payment assistance to 16 first time home buyers. • Completed the Shoreline Management Program update consistent with the grant agreement between the Department of Ecology and the City. Provided the final draft of the Shoreline Plan to the Department for final review. • Administered the consultant contract for visioning associated with key Downtown improve- ments. Developed a second contract for the decision points key in revitalization of the core target area (four block area centered on 41h/Lewis). Council reaffirmed this priority program through the allocation of $125,000 of Community Development Block Funds for creation of biddable documents and downtown infrastructure consistent with revitalization plan decision points. • Obtained utility tax credit for the City's 2015 contribution to the Downtown Pasco Devel- opment Authority through the reimbursement program eligible for Main Street Communities. 2016 GOALS: • Review and implement a deferred Impact Fee Payinent Option per 2015 State legislation. • Review and implement a revised Latecomer Agreement Option per 2015 State legislation. • Review and implement revisions to the City's Sign Code per 2015 United States Supreme Court decision and guidelines. • Revise the City's Facade Improvement Program to increase participation acid effectiveness. • Undertake a significant portion of the cyclical update of the City's Comprehensive Plan re- quired through the Growth Management Act by completing the Land Use and Transportation Elements. City of Pasco, Washington 32 P?M� �A at 321 COMMUNITY DEVELOPMENT EXPENDITURES 2013 2014 ACTUAL ACTUAL FUNCTION SALARIES AND WAGES $ 813,918 $ 759,463 PERSONNEL BENEFITS 326,684 339,322 SUPPLIES 8,656 13,016 OTHER SERVICES/CHARGES 102,821 339,774 TOTAL EXPENDITURES $ 9,252,079 $ 1,451,575 2015 AMENDED BUDGET as of 9130 2015 2016 ACTUALS as of BUDGET -CM level -CM 9130 NP $ 896,741 $ 624,293 399,619 293,802 17,750 11, 312 204,151 159.563 $ 1,518,261 $ 1,088,970 COMMUNITY DEVELOPMENT PERSONNEL SUMMARY POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2016 COMMUNITY DEV. DIRECTOR 1.00 1.00 1.00 1.00 INSPECTION SERVICES MGR. 1,00 1,00 1.00 1.00 CITY PLANNER 1.00 1.00 1.00 1.00 ASSOCIATE PLANNER 1.00 1.00 1.00 1.00 PLANS EXAMINER 1.00 1.00 t.00 1.00 BUILDING INSPECTOR 2.00 2.00 2.00 2.00 PLANNER 1 1.00 1.00 1.00 1.00 CODE ENFORCEMENT OFF. 4.00 4.00 4.00 4.00 ADMINISTRATIVE ASSISTANT II 1.00 1.00 1.00 1.00 PERMIT TECHNICIAN 2.00 2.00 2.00 2.00 TOTAL 15.00 15.00 15.00 15.00 881.755 420,157 18,750 186,863 $ 1,507,525 Page 74 of 321 City of Pasco, Washington 33 2016 Budget Public Works - Engineering C17Y MANAGER IPUBLIC WORKS N DIRECTOR CITY ENGINEER ADMIN ASST 1 DEVELOPMENT I GIs I TRANSPORTATION ORTF DEVELOPMENT GIs SENENGINEERHC ENGINEER TECHNICIAN ASSOCIATE DEVELOPMENT TRANSPORTATION ASSOCIATE I ENGINEER TRAFFIC TECHNICIAN CONTRACT ADMINISTRATOR CAPITAL IMPROVEMENT PROTECTS CIP ENGINEERSI CONSTRUCTION MANAGER Public Works Department PROGRAMS: CONSTRUCTION INSPECTORS UTILITY/ WATER QUAD I Y SENIOR UTILITY ENGINEER ENVIRONMENTAL ASSOCIATE ENGINEER UTILITY TECHNICIAN The Public Works Department acts as the community stewards for the planning, design, construction, inspection, operation and maintenance of the City's infiastructure. This in- cludes all roadways, sidewalks, street signals, street lighting, storm drainage, water produc- tion facilities, water and sewerage conveyance systems, process water reuse facility and sewage treatment systems The Engineering Division is responsible for the planning, designing, surveying, field inspec- tion and contract administration for most construction projects within the City. The Division also performs mapping and drafting services, assists in the formation and administration of local improvement projects and monitors traffic patterns and related problems. The Water Division's responsibility is to provide clean, clear, potable water to utility cus- tomers, to maintain a high quality and deliver the product economically and plentifiilly to the customers. The Wastewater or Sewer Division is charged with treating industrial and domestic wastes. Sewer maintenance insures that the system is leak and seepage proof, unblocked by sand, grease or roots, and graded to move wastes efficiently to the treatment plant where the treated water is sent back to the Columbia River cleaner than when it was originally taken out. City of Pasco, Washington 34 P 21716�uC of321 The Process Water Reuse Facility receives wastewater fi•om several food processing plants which is then pumped to large holding ponds and/or sprayed onto ,growing crops as a means of usage and disposal. During the non -growing season, the water- is held in the storage ponds. The Stormwater management system was established, pursuant to state law, for the man- agement of surface and stormwater runoff created on City streets and delivered to City - owned stornzwater facilities. The Irrigation Division provides untreated water for irrigation to those living in housing developments iu the northwestern portion of the City where sandier soil conditions exist. The utility provides a more cost effective alternative for water residential properties. Equipment Rental is responsible for the maintenance, repairs and inspections of all City owned vehicles and rolling equipment. The fleet ranges from Police and Fire vehicles and automobiles, utility vehicles and heavy construction equipment, and parks vehicles and maintenance equipment. Street Division -Provide critical maintenance of streets, sidewalks, traffic signals, roadway shoulders, snow removal, street signage, street sweeping, pavement preservations, and street striping in very effective manner. The city is practically pothole fi-ee and 80% of the streets have 70% or higher is pavement condition rating. 2015 KEY ACCOMPLISHMENTS: Engineering e Court St ADA & Pedestrian Upgrades • Lewis Street Demolition • Rd 40 E. Storm Drainage • School Zone Flashing Beacons -- Upgrade • School Zone Safety Improvements • Rd 68 improvements Ph 2 & Interconnect Rd 68 Signals • PAW Ph 3, Pond Area Grading • Butterfield Intake Screens • Memorial Park Upgrades * 2015 Crack Seal * Richardson Park Pool Demo * 2014 — 2015 Chip Seal * 2015 Micro-Surfaciug (Sylvester Street) • 2015 Overlays * 2015 Water Meter Relocations • Powerline Rd Improvements * Avion Pond * ADA Upgrade/Retr-ofit Program * ADA Improvements along Sylvester Street Pape 76 of 321 City of Pasco, Washington 35 201 Budget Design Completed-CIP 0 3rd Primary Clarifier o Rd 76 Widening a Oregon Ave, Ph 1 — 2 • Oregon Avenue Water Main Replacement o Argent Rd Widening (20th Avenue to Road 44) o East Side Booster Station Upgrade o City Wide Traffic Signal Controller Upgrade 0 201h Ave Access Management o WWTP Caustic Soda Iurprovements 0 2015 Sewer Re -Living Sewer Collections Maintained level of H2S at an acceptable level to minimize complaints. Installed two pinups at chemical installation station so they operate independently to save chemicals. Stormwater • Changed programming software in CCTV truck so it is compatible with the new CCTV tick used by Sewer collections. This will also allow for the addition of the Asset Man- agement Program Cartegraph to be installed. This was all done with grant fluids. Street • Completed Alley hard surfacing. Equipment Rental • Created parts room and inventory control measures in Equipment Rental Irrigation • Northwest Commons well rehab • Desert Plateau/I-82 well rehab • Repair/replace 40 irrigation isolation valves • Supplied 2.8MG of water to our irrigation customers (2% increase from sauce period in 2014). • Draft strategic plan for Irrigation PWRF • Replaced 280' of PWRF forcemain under Hwy 395 • Placed gravel around PWRF for dust control • Removed trash/old parts fi-our PWRF • Reallocated staff resources to assist in o/m at PWRF and the Farms • Identified telemetry deficiencies at Farui • Repaired skimmer in clarifier at PWRF to remove more grease • Replaced sections of forcemain downstream of IPS heading into farms • R/R isolation valves for each farm circle • Identify methods and techniques to reduce sand leaving PWRF • Coordinate and meet consistently with farmers City of Pasco, Washington 36 PN%�&8&321 • Identify and install more efficient sprinkler heads at circles • Created processes to improve communication between City and other professional ser- vices • Bladed in road along the south and eastern fence line at PWRF • Passed slope stability assessment • Supplied 5.9MG of processed water to the farms • Bladed roads into circles • Cleaned 35 and 8 million gallon pond • Reduced amount of man-hours required to clean screens • Draft strategic plan for PWRF • No NPDES permit violations in 2015 year-to-date • Replaced Ste and Washington lift station Variable fi-equency drives and Programming logic controller • Replaced Effluent weir • Added one additional operator position to WWTP staff • Caustic soda system currently under construction. • Primary Clarifier project under construction • DYSTOR Control panel replacement currently under construction Water • Completed 2015 Water Meter Relocation Project - moved 34 water services from the old water main in alley to the new water main in the street. This work needed to be done before the alleys were chip sealed. • Started Fire Hydrant maintenance program this year. Performed maintenance on 1,279 hydrants in the first three quarters of 2015. • Continued meter replacement program - replaced 1,214 meters in the first three quarters of 2015. • Got pilot ofUni-Directional Flushing program underway. • Butterfield Raw Water intake upgrade completed. 201+6 GOALS: Engineering • Customer Service - Continue to provide exceptional customer service to all citizens, coworkers, and City partners in accordance with the City of Pasco Customer- Service Policy. • Development Review Improvement Process — Work to develop a review process com- bining the efforts of Community and Economic Development, Planning, Engineering, Public Works Operations, Building Codes, Code Enforcement, and Administration to better serve the public and provide procedure that promotes uniform application of City standards and expectations both for current and future citizens. • Establish an Administrative Project Filing and Tracking System — This system will ensure that the City of Pasco Engineering Department will be able to work within state and federal requirements for the collection, maintenance, and reporting of moneys ac- quired by grants and other funding sources that are utilized in Public Works projects. • Continue Improving the Relationship between Engineering and Operations - To con- tinue developing the working relationship between Engineering and Operations by con- tinuing to include Operations staff during the project design and development phase. Page 78 of 321 City of Pasco, Washington 37 2016 Budget • Mentoring - Continue to develop a program on mentoring new engineers for project management and leadership development. Sewer Collections • To maintain odor levels with no complaints on Road 44. • Continue to save chemicals. • Install and begin using Cartegraph. Stormwater • Hire two new frill time employees to begin CCTV inspections in stonu system. These employees will also perfonu cleaning of storm water mainlines and will allow us to do more with illicit discharge detection. • Start using Cartegraph to monitor annual storm drain cleaning program. • Complete the Master Plan to meet the future demands and upcoming regulatory re- quirements for the 2019 NPDES permit Street • Purchase a new striping truck to improve safety of application and also improve produc- tivity. • Sidewalks: Complete Downtown area and Zone A. • Complete the pavement rating to help us outline and prioritize street for rehab and preservations • Use City crew to complete the prep work for Utah from James Street to the Cul-de-sac. • Start construction of Oregon Avenue • Complete the NEPA update for Lewis Overpass • Complete planning level for the Lewis Street Overpass Options Equipment Rental • Reduce costs for PMA in Equipment Rental o Create performance measures o Create inventory tracking and accountability plan o Streamline operations by creating protocols and procedures • Create/establish "quick lube center" in Equipment Rental • Contact other jurisdiction our size on their ER practices and restructure the ER program Irrigation • Desert Oasis well -head rehab • Desert Swiset well -head rehab • Develop CIP program using the adopted master plan • Construct 3 to 4 well houses PVVRF • PVVRF Facilities Plan • Meet DOE compliance • Improve water quality to Farms • Decrease sand coming into PWRF • Unify fano irrigation • Repair and replace ductile iron pipe at PAW with poly/pvc • Complete the master plan • Complete the design and possibly start construction of the lift station at Dietrich Road City of Pasco, Washington 38 PNg g,%pft321 WWTP • No NPDES permit violations • Primary Clarifier project completed • Replace Grit Classifiers • Install 41h pump and VFD at Maitland Lift Station • Replace Programming logic controller (PLC) at Maitland Lifl Station • Update Communications at 4 lift stations • Design DAFT #2 • Complete safety upgrades to WWTP and surrounding lift stations • Complete Screw press installation • Update WWTP preventative maintenance program • Add mechanic positon to WWTP staff Water • Get Uni-Directional Flushing zones and sequences completed and program in full swing. • Continue maintenance schedule on fire hydrants and begin painting them. • Continue meter replacement program - explore possibility of moving toward automated meter reading. • Continue installation of new fire hydrants. • Oregon Ave Water Line Replacement • Begin WPWTP Raw Water intake construction • East Side Booster Pump Station upgrades • Complete the water main construction at Oregon Avenue Page 80 of 321 City of Pasco, Washington 39 2016 Budget FUNCTION SALARIES AND WAGES PERSONNEL BENEFITS SUPPLIES OTHER SERVICESICHARGES CAPITAL OUTLAY TOTAL EXPENDITURES ENGINEERING ENGINEERING EXPENDITURES 2013 2014 2015 2015 POSITION 2013 AMENDED ACTUALS as of ACTUAL ACTUAL BUDGET 9130 0.15 CITY ENGINEER as of 9130 1,00 $ 1,063,345 $ 1,057,908 $ 1,156,704 $ 701,335 409,359 438,252 478,413 309,227 8,806 22,176 33,650 8,336 167,240 150,880 170,297 134,982 $ 1,648,750 $ 1,669,218 $ 1,839,064 $ 1,153,880 2016 BUDGET -CM level -CM NP $ 1,105,524 469,891 25,350 164,456 $ 1,765,221 City of Pasco, Washington 40 PEW6%jQtp21 ENGINEERING PERSONNEL SUMMARY POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2016 PUBLIC WORKS DIRECTOR 0.20 0.20 0.20 0.15 CITY ENGINEER 1 00 1,00 1.00 1.00 CONSTRUCTION MANAGER 1.00 1.00 1.00 1.00 SENIOR ENGINEER 2.00 2.00 2.00 2.00 CIVIL ENGINEER 3.00 3.00 3.00 3.00 ASSOCIATE ENGINEER 2.00 2.00 3.00 3.00 CONSTRUCTION INSPECTOR 3.00 3.00 3.00 3.00 ENGINEERING TECHNICIAN III 1.00 1,00 ENGINEERING TECHNICIAN 11 1.00 1.00 1.00 1.00 ENGINEERING TECHNICIAN 1 1.00 1.00 1.00 ADMINISTRATIVE ASSISTANT II 1.00 1.00 1.00 1.50 ADMINISTRATIVE ASSISTANT 1 1.00 1.00 1.00 1.00 TOTAL 17.20 17.20 17.20 16.65 2016 BUDGET -CM level -CM NP $ 1,105,524 469,891 25,350 164,456 $ 1,765,221 City of Pasco, Washington 40 PEW6%jQtp21 FUNCTION SALARIES AND WAGES PERSONNEL BENEFITS SUPPLIES OTHER SERVICESICHARGES CAPITAL OUTLAY TOTAL EXPENDITURES LIBRARY LIBRARY EXPENDITURES 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET as of 9130 2015 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP 2,363 6,292 12,500 3,715 12,500 1,178,931 1,213,740 1,249,186 937,785 1,292,700 $ 1,181,294 $ 1,220,032 $ 1,261,686 $ 941,500 $ 1,305,200 NON -DEPARTMENTAL NON -DEPARTMENTAL EXPENDITURES City of Pasco, Washington 41 2D16'BudgetOf 321 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM FUNCTION as of 9130 of 9130 NP PERSONNEL BENEFITS 538,641 588,024 657,618 443,564 - SUPPLIES 41,777 27,562 55,000 21,338 55,000 OTHER SERVICES/CHARGES 1,202,484 1,335,703 2,005,357 943,564 2,593,832 TRANSFERS 5,608,583 2,475,940 9,855,747 830,580 6,201,000 CAPITAL OUTLAY 196,230 - DEBT SERVICE 1,015,288 579,830 575,030 181,754 1,551,675 SUB -TOTAL EXPENDITURES $ 8,603,003 $ 5,007,059 $ 13,148,752 $ 2,420,800 $ 10,401,507 ENDING FUND BALANCE 6,245,218 9,383,161 7,955,361 7,955,361 8,367,491 TOTAL EXPENDITURES $ 14,848,221 $ 14,390,220 $ 21,104,113 $ 10,376,161 $ 18,768,998 City of Pasco, Washington 41 2D16'BudgetOf 321 This page left blank City of Pasco, Washington 42 P@Sg &tK l SPECIAL REVENUE FUNDS Special Revenue Funds are Funds used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes. City of Pasco, Washington 43 2owgu4pf 321 L Public Works - Streets CITY MANAGER PUBLIC WORKS DIRECTOR SUPERINTENDENT PIA+ DIVISION MANAGER ADMIN ASST I LEAD STREET WORKER INSTRUMENT TECH HEAVY UTILITY EQUIPMENT MAINTENANCE OPERATORS WORKERS City of Pasco, Washington 44 PNP & oft 321 REVENUE TAXES LICENSES AND PERMITS INTERGOVERNMENTAL MISCELLANEOUS REVENUES INTERFUND TRANSFERS TOTALREVENUES BEGINNING FUND BALANCE TOTALRESOURCES CITY STREET FUND REVENUES 2013 2014 2015 2015 2016 2016 NUMBER OF EMPLOYEES 2014 2015 AMENDED PUBLIC WORKS DIRECTOR AMENDED ACTUAL ACTUAL BUDGET ACTUALS as of BUDGET -CM level -CM BUDGET ACTUALS as of as of 9130 9130 NP $ 209,098 $ 225,410 $ 209,500 $ 170,580 $ 237,000 309,906 395,448 407,000 276,243 445,000 931,919 1,883,279 1,405,000 752,395 997,000 6,805 63,607 63,040 9,390 5,640 779,892 649,294 492,072 40,350 - 2,236,620 3,217,038 2,576,612 1,248,958 1,684,640 475,339 797,091 488,742 502,726 479,081 $ 2,711,959 $ 4,014,129 $ 3,065,354 $ 1,751,684 $ 2,163,721 CITY STREET FUND EXPENDITURES Page 86 of 321 City of Pasco, Washington 46 2016 Budget 2013 2014 2015 2015 2016 NUMBER OF EMPLOYEES 2014 2015 2016 PUBLIC WORKS DIRECTOR AMENDED 0.20 0.20 0.11 ACTUAL ACTUAL BUDGET ACTUALS as of BUDGET -CM level -CM FUNCTION 0,35 1.00 0.34 1.00 as of 9130 9130 NP SALARIES AND WAGES $ 357,808 $ 408,807 $ 515,776 $ 338,348 $ 580,522 PERSONNEL BENEFITS 159,760 193,558 258,931 164,745 283,082 SUPPLIES 103,482 269,164 440,800 92,455 179,300 OTHER SERVICESICHARGES 1,293,818 2,581,821 1,664,766 875,661 1,073,477 CAPITAL OUTLAY 58,053 6,000 1,590 40,600 SUB -TOTAL EXPENDITURES 1,914,868 3,511,403 2,886,273 1,472,799 2,156,981 ENDING FUND BALANCE 797,091 502,726 179,081 278,885 6,740 TOTAL $ 2,711,959 $ 4,014,129 $ 3,065,354 $ 1,751,684 $ 2,163,721 Page 86 of 321 City of Pasco, Washington 46 2016 Budget CITY STREETS PERSONNEL SUMMARY POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2016 PUBLIC WORKS DIRECTOR 1 0.20 1 0.20 0.20 0.11 PUBLIC WORK SUPERINTENDENT 0.15 0.15 0.15 0.15 ASST. OPERATIONS MANAGER LEAD STREET WORKER 0,35 1.00 0.34 1.00 0.34 1.00 1.00 HEAVY EQUIPMENT OPERATOR 2.50 2.50 3.00 5.00 UTILITY MAINTENANCE WORKER 1 1.00 2,00 2.00 2.00 INSTRUMENTATION TECH 0.50 1.00 ADMINISTRATIVE ASSISTANT 1 0.20 0.20 0.20 0,25 LABORER 1 TOTAL 1.00 6.40 1.00 7.39 1.00 8.39 110.01 Page 86 of 321 City of Pasco, Washington 46 2016 Budget ARTERIAL STREET FUND ARTERIAL STREET FUND REVENUES ARTERIAL STREET FUND EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUALS as of BUDGET -CM level -CM ACTUAL ACTUAL BUDGET 9/30 NP REVENUE as of 9130 INTERGOVERNMENTAL 465,338 489,193 497,000 348,909 498,500 CHARGES FOR SERVICES 6,065 7,650 5,750 5,898 5,750 MISCELLANEOUS 1,454 415,434 100 1,357 100 INTERFUND TRANSFERS 1,412,822 1,501,029 1,658,881 1,735,871 364,971 TOTAL REVENUES 472,857 503,641 502,850 356,164 504,350 BEGINNING FUND BALANCE 1,138,439 1,412,822 1,501,028 1,501,029 1,658,881 TOTAL RESOURCES $ 1,611,296 $ 1,916,463 $ 2,003,878 $ 1,857,193 $ 2,163,231 ARTERIAL STREET FUND EXPENDITURES City of Pasco. Washington 46 Pagp69ff ej21 2013 2014 2015 2015 2016 AMENDED ACTUALS as of BUDGET -CM level -CM ACTUAL ACTUAL BUDGET 9130 NP FUNCTION as of 9130 OTHER SERVICESICHARGES 40,160 16,362 13,260 - 13,260 INTERFUND TRANSFERS 158,314 399,072 331,737 121,322 1,785,000 SUB -TOTAL EXPENDITURES 198,474 415,434 344,997 121,322 1,798,260 ENDING FUND BALANCE 1,412,822 1,501,029 1,658,881 1,735,871 364,971 TOTAL $ 1,611,296 $ 1,916,463 $ 2,003,878 $ 1,857,193 $ 2,163,231 City of Pasco. Washington 46 Pagp69ff ej21 1-182 CORRIDOR TRAFFIC IMPACT FUND 1-182 CORRIDOR TRAFFIC IMPACT FUND REVENUES 1-182 CORRIDOR TRAFFIC IMPACT FUND EXPENDITURES 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM REVENUE ACTUAL ACTUAL as of 9130 of 9/30 NP CHARGES FOR SERVICES $ 183,481 $ 189,398 $ 234,000 $ 165,399 $ 200,000 MISCELLANEOUS 1,492 1,188 1,000 1,131 1,000 INTERFUND TRANSFERS - - 35,875 17,629 256,000 TOTAL REVENUES 184,973 190,586 235,000 166,530 201,000 BEGINNING FUND BALANCE 1,050,378 1,063,658 1,184,829 1,178,432 1,329,954 TOTAL RESOURCES $ 1,235,351 $ 1,254,244 $ 1,419,829 $ 1,344,962 $ 1,530,954 1-182 CORRIDOR TRAFFIC IMPACT FUND EXPENDITURES City of Pasco, Washington 47 015 8 Budget 321 2013 2014 2015 2015 2016 AMENDED ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM FUNCTION as of 9130 of 9130 NP INTERFUND TRANSFERS $ 171,693 $ 75,812 $ 35,875 $ 17,629 $ 256,000 SUB -TOTAL EXPENDITURES 171,693 75,812 35,875 17,629 256,000 ENDING FUND BALANCE 1,063,658 1,178,432 1,383,954 1,327,333 1,274,954 TOTAL $ 1,235,351 $ 1,254,244 $ 1,419,829 $ 1,344,962 $ 1,530,954 City of Pasco, Washington 47 015 8 Budget 321 STREET OVERLAY FUND STREET OVERLAY FUND REVENUES City of Pasco, Washington 48 P@@g §u%get321 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP REVENUE as of 9130 TAXES $ B38,676 $ 903,557 $ 874,000 5 683,774 $ 919,50D MISCELLANEOUS 3,833 3,256 3,000 2,544 3,000 INTERFUND TRANSFERS - - 534,000 160,000 706,000 TOTAL REVENUES 842,509 906,815 1,411,000 846,318 1,628,500 BEGINNING FUND BALANCE 2,543,429 2,926,904 2,649,446 2,649,447 2,154,446 TOTAL RESOURCES $ 3,385,938 $ 3,833,719 $ 4,060,446 $ 3,495,765 $ 3,782,946 STREET OVERLAY FUND EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP FUNCTION as of 9130 OTHER SERVICES/CHARGES 216,286 1,129,058 1,482,000 1,112,154 836,242 INTERFUND TRANSFERS 242,748 55,214 424,000 424,000 967,000 SUB -TOTAL EXPENDITURES 459,034 1,184,272 1,906,000 1,536,154 1,803,242 ENDING FUND BALANCE 2,926,904 2,649,447 2,154,446 1,959,611 1,979,704 TOTAL $ 3,385,938 $ 3,833,719 $ 4,060,446 5 3,495,765 $ 3,782,946 City of Pasco, Washington 48 P@@g §u%get321 This page left blank Page 90 of 321 ity Cof Pasco, Washington 49 201 udget E Community Development Block Grant I ADMIN ASST it CITY MANAGER COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR BLOCK GRANT ADMINISTRATOR COMMUNITY DEVELOPMENT GRANT FUND City of Pasco, Washington 50 P,1g1�.91dq&321 COMMUNITY DEVELOPMENT GRANT FUND REVENUES COMMUNITY DEVELOPMENT GRANT FUND EXPENDITURES 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED ACTUALS as BUDGET -CM level -CM FUNCTION ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM REVENUE $ 90,253 $ 88,782 as of 9/30 of 9130 NP INTERGOVERNMENTAL 617,504 448,411 1,523,571 439,981 1,084,257 CHARGES FOR SERVICES 98,647 502,237 12,300 118,468 - MISCELLANEOUS 101,965 506,181 133,000 117,796 53,700 OTHER FINANCING SOURCES 285,000 282,640 908,671 571,043 - INTERFUND TRANSFERS 7,629 22,720 - TOTAL REVENUES 1,110,745 973,368 1,656,571 557,777 1,137,957 BEGINNING FUND BALANCE (38,104) 56,795 69,547 165,659 310,495 TOTAL RESOURCES $ 1,072,641 $ 1,032,163 $ 1,726,118 $ 392,118 $ 1,448,452 COMMUNITY DEVELOPMENT GRANT FUND EXPENDITURES COMMUNITY DEVELOPMENT PERSONNEL SUMMARY 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM FUNCTION as of 9130 of 9130 NP SALARIES AND WAGES $ 90,253 $ 88,782 $ 60,244 $ 57,444 $ 63,255 PERSONNEL BENEFITS 32,791 34,791 25,791 23,085 26,952 SUPPLIES 2,308 428 12,300 118,468 1,500 OTHER SERVICESICHARGES 277,760 506,181 408,617 361,469 493,690 INTERFUND TRANSFERS 374,736 282,640 908,671 571,043 414,000 DEBT SERVICE 236,000 285,000 - SUB -TOTAL EXPENDITURES 1,013,846 1,197,822 1,415,623 1,131,509 999,397 ENDING FUND BALANCE 58,795 (165,659) 310,495 (739,391) 449,055 TOTAL $ 1,072,641 $ 1,032,163 $ 1,726,118 $ 392,118 $ 1,448,452 COMMUNITY DEVELOPMENT PERSONNEL SUMMARY NUMBER OF EMPLOYEES POSITION 2013 2014 2015 2016 BLOCK GRANT ADMINISTRATOR 1.00 1.00 1.00 1.00 TOTAL 1.00 1.00 1.00 1.00 City of Pasco, Washington 51 201 le d9 of 321 t Martin Luther King Center Fund CITY MANAGER ADMINISTRAIVE & COMMMUNITY SERVICES DIRECTOR RECREATION SERVICES MANAGER RECREATION SPECIALIST M.L. KING JR. COMMUNITY CENTER FUND City of Basco, Washington 52 P@R g�dgjtK l M.L. KING JR. COMMUNITY CENTER REVENUES M.L. KING JR. COMMUNITY CENTER EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUAL ACTUAL BUDGET ACTUALS as of BUDGET -CM level -CM REVENUE 9130 9130 NP CHARGES FOR SERVICES $ 7,449 $ 61790 _ as Rf $ 3,140 $ 2,541 $ 10,500 MISCELLANEOUS 31,522 34,594 30,780 26,588 36,760 INTERFUND TRANSFERS 120,000 120,000 120,000 90,000 120,000 TOTAL REVENUES 158,971 161,384 153,920 119,129 167,260 BEGINNING FUND BALANCE 34,811 51,265 51,615 52,415 41,045 TOTAL. RESOURCES $ 193,782 $ 212,649 $ 205,535 $ 171,544 $ 208,305 M.L. KING JR. COMMUNITY CENTER EXPENDITURES MARTIN LUTHER KING SUMMARY NUMBER OF EMPLOYEES POSITION 2013 2014 2015 2016 RECREATION SPECIALIST 1.00 1.00 1.00 1.00 TOTAL 1.00 1.00 1.00 1.D0 Page 94 of 321 City of Pasco, Washington 53 2016 Budget 2013 2014 2015 2015 2016 AMENDED ACTUAL ACTUAL BUDGET ACTUALS as of BUDGET -CM level -CM FUNCTION as of 9130 9130 NP SALARIES AND WAGES $ 64,183 $ 65,976 $ 64,898 $ 49,137 $ 66,089 PERSONNEL BENEFITS 25,325 28,115 28,329 21,005 30,496 SUPPLIES 1,020 7,014 7,200 4,953 7,000 OTHER SERVICES/CHARGES 51,989 59,129 64,053 42,611 66,833 CAPITAL OUTLAY - SUB -TOTAL EXPENDITURES 142,517 160,234 164,490 117,706 170,416 ENDING FUND BALANCE 51,265 52,415 41,045 53,838 37,887 TOTAL $ 193,782 $ 212,649 $ 205,535 $ 171,544 $ 208,305 MARTIN LUTHER KING SUMMARY NUMBER OF EMPLOYEES POSITION 2013 2014 2015 2016 RECREATION SPECIALIST 1.00 1.00 1.00 1.00 TOTAL 1.00 1.00 1.00 1.D0 Page 94 of 321 City of Pasco, Washington 53 2016 Budget Ambulance Service Fund FIRE CHIEF ADMIN ASST 11 EMSB ASSISTANT TRAINING CHIEF j BATTALION CHIEFS CAPTAINS LIEUTENANTS PARAMEDICS Page 95 of 321 City of Pasco, Washington 54 2016 Budget AMBULANCE SERVICE FUND REVENUES AMBULANCE SERVICE FUND EXPENDITURES 2013 2014 2015 2015 2016 NUMBER OF EMPLOYEES POSITION AMENDED 2014 2015 2016 ACTUAL ACTUAL BUDGET ACTUALS as of BUDGET -CM level -CM REVENUE as of 9130 9130 NP INTERGOVERNMENTAL 1,208 1,473 1,20{) 1,341 1,300 CHARGES FOR SERVICES 2,833,497 3,358,703 3,426,772 2,555,639 4,991,619 MISCELLANEOUS 5,231 1,192 750 2,136 750 INTERFUND TRANSFERS 1,157,000 420,000 420,000 315,000 420,000 TOTAL REVENUES 3,996,936 3,781,368 3,848,722 2,874,116 5,413,669 BEGINNING FUND BALANCE 171,020 429,626 642,523 642,523 246,908 TOTAL RESOURCES $ 4,167,956 $ 4,210,994 $ 4,491,245 $ 3,516,639 $ 5,660,577 AMBULANCE SERVICE FUND EXPENDITURES Page 96 of 321 City of Pasco, Washington 55 2016 Budget 2013 2014 2015 2015 2016 NUMBER OF EMPLOYEES POSITION AMENDED 2014 2015 2016 ACTUAL ACTUAL BUDGETas ACTUALS as of BUDGET -CM level -CM FUNCTION of 9130 9130 NP SALARIES AND WAGES $ 2,182,955 $ 1,810,210 $ 2,048,166 $ 1,495,443 $ 2,993,627 PERSONNEL BENEFITS 445,946 478,304 494,659 374,880 833,654 SUPPLIES 125,091 131,728 191,052 144,123 220,878 OTHER SERVICES/CHARGES 935,068 997,168 1,193,606 833,340 1,471,892 INTERFUND TRANSFERS 1,268 135,040 264,000 1.00 - CAPITAL OUTLAY - 16,021 52,854 $2,853 49,500 DEBT SERVICE 48 000 0.50 DEPARTMENT ASSISTANT I! 0.50 0.50 SUB -TOTAL EXPENDITURES 3,738,330 3,568,471 4,244,337 2,900,639 5,569,551 ENDING FUND BALANCE 429,626 642,523 246,908 616,000 91,026 TOTAL $ 4,167,956 $ 4,210,994 $ 4,491,245 $ 3,516,639 $ 5,660,577 Page 96 of 321 City of Pasco, Washington 55 2016 Budget AMBULANCE PERSONNEL SUMMARY NUMBER OF EMPLOYEES POSITION 2013 2014 2015 2016 FIRE CHIEF 0.50 0.50 0.50 0.50 ASSISTANT FIRE CHIEF 0.50 BATTALION CHIEFS 1.50 CAPTAIN PARAMEDIC EMS OFFICER 1.00 1.00 1.00 1.00 CAPTAIN PARAMEDIC OFFICER 1.00 1.00 1.00 2.00 LIEUTENANT 1.00 PARAMEDIC 16.00 16.00 16.00 23.00 ADMINISTRATIVE ASSISTANT Il 0.50 DEPARTMENT ASSISTANT I! 0.50 0.50 0.50 1.00 TOTAL 19.00 19.00 19.00 31.00 Page 96 of 321 City of Pasco, Washington 55 2016 Budget Cemetery Fund CITY MANAGER ADMINISTRAIVE & COMMMUNITY SERVICES DIRECTOR FACILITIES MANAGER CUSTOMER SERVICE REPRESENTATIVE GROUNI)SMANI Page 97 of 321 City of Pasco, Washington 56 2016 Budget CITY VIEW CEMETERY FUND REVENUES Page 98 of 321 City of Pasco, Washington 57 201 Budget 2013 2014 2015 2015 2016 GROUNDSMAN I 0.50 0.50 0.50 0.50 AMENDED 1.00 1.00 1.00 1.00 TOTAL ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM REVENUE as of 9/30 of 9130 NP CHARGES FOR SERVICES 246,116 257,677 189,000 141,033 205,250 MISCELLANEOUS 458 441 300 71 300 INTERFUND TRANSFERS 30,000 30,000 30,000 22,500 60,000 TOTAL REVENUES 276,574 288,118 219,300 163,604 265,550 BEGINNING FUND BALANCE 68,820 72,808 77,304 71,215 11,171 TOTAL RESOURCES $ 345,394 $ 360,928 $ 296,604 $ 234,819 $ 276,721 CITY VIEW CEMETERY FUND EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM FUNCTION as of 9130 of 9130 NP SALARIES AND WAGES $ 102,721 $ 101,241 $ 100,533 $ 67,364 $ 86,142 PERSONNEL BENEFITS 38,299 45,105 44,101 22,597 28,198 SUPPLIES 55,638 70,218 48,400 40,000 51,000 OTHER SERVICFS/CHARGES 75,928 73,147 102,399 58,340 101,871 SUB -TOTAL EXPENDITURES 272,586 289,711 295,433 188,301 267,211 ENDING FUND BALANCE 72,808 71,215 1,171 46,518 9,510 TOTAL $ 345,394 $ 360,926 $ 296,604 $ 234,819 $ 276,721 Page 98 of 321 City of Pasco, Washington 57 201 Budget CEMETERY PERSONNEL SUMMARY POSITION NUMBER OF EMPLOYEES 2013 2014 2015 2016 GROUNDSMAN I 0.50 0.50 0.50 0.50 CUSTOMER SERVICE REP, 1.00 1.00 1.00 1.00 TOTAL 1.50 1.50 1.50 1 1.50 Page 98 of 321 City of Pasco, Washington 57 201 Budget BOULEVARD PERPETUAL MAINTENANCE FUND BOULEVARD PERPETUAL MAINTENANCE FUND REVENUES BOULEVARD PERPETUAL MAINTENANCE FUND EXPENDITURES 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET FUNCTION as of 9130 2016 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP OTHER SERVICES/CHARGES 2013 2014 2015 2016 2016 INTERFUND TRANSFERS 70,000 70,000 AMENDED ACTUALS as BUDGET -CM level -CM SUB -TOTAL EXPENDITURES ACTUAL ACTUAL BUDGET of 9130 NP REVENUE 1,917,009 1,631,084 as of 9130 1,832,785 2,334,232 CHARGES FOR SERVICES $ 59,395 $ 75,755 $ 85,900 $ 76,950 $ 90,904 MISCELLANEOUS 50,840 24,683 31,267 29,711 26,496 OTHER FINANCING SOURCES 106,518 109,713 147,537 147,537 152,308 TOTAL REVENUES 216,753 210,151 264,704 254,198 269,704 BEGINNING FUND BALANCE 1,770,,256 1,917,009 1,944,824 1,631,084 2,139,528 TOTAL RESOURCES $ 1,987,009 $ 2,127,169 $ 2,209,528 $ 1,885,282 $ 2,409,232 BOULEVARD PERPETUAL MAINTENANCE FUND EXPENDITURES 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET FUNCTION as of 9130 2016 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP OTHER SERVICES/CHARGES - 953 - INTERFUND TRANSFERS 70,000 70,000 70,000 52,497 75,000 SUB -TOTAL EXPENDITURES 70,000 496,076 70,000 52,497 75,000 ENDING FUND BALANCE 1,917,009 1,631,084 2,139,528 1,832,785 2,334,232 TOTAL 3 1,987,009 $ 2,127,160 $ 2,209,528 $ 1,885,282 $ 2,409,232 City of Pasco, Washington 58 Pig%�Cgtp21 REVENUE CHARGES FOR SERVICES MISCELLANEOUS INTERFUND TRANSFERS TOTALREVENUES BEGINNING FUND BALANCE TOTALRESOURCES ATHLETIC PROGRAMS FUND ATHLETIC PROGRAMS FUND REVENUES 2013 ACTUAL 2014 2015 AMENDED ACTUAL BUDGET as of 9130 2015 2016 ACTUALS as BUDGET -CM level -CM of 9/30 NP $ 126,973 $ 127,881 5 130,000 $ 58,954 $ 130,850 4,168 3,341 550 470 1,150 131,141 131,222 130,550 59,424 132,000 143,025 132,467 121,848 157,230 115,964 $ 274,166 $ 263,689 $ 252,398 $ 216,654 $ 247,964 ATHLETIC PROGRAMS FUND EXPENDITURES ATHLETIC PROGRAM PERSONNEL SUMMARY 2013 2014 2015 2015 2016 050 0.50 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM FUNCTION as of 9130 of 9130 NP SALARIES AND WAGES $ 28,744 $ 20,802 $ 23,768 $ 16,727 $ 26,045 PERSONNEL BENEFITS 5,921 4,661 4,224 3,972 5,969 SUPPLIES 14,328 20,995 48,230 17,440 44,280 OTHER SERVICES/CHARGES 92,706 60,001 60,212 22,973 62,801 SUB -TOTAL EXPENDITURES 141,699 106,459 136,434 61,112 139,095 ENDING FUND BALANCE 132,467 157,230 115,964 155,542 108,869 TOTAL $ 274,166 $ 263,689 $ 252,398 $ 216,654 $ 247,964 ATHLETIC PROGRAM PERSONNEL SUMMARY NUMBER OF EMPLOYEES POSITION 2013 2014 2015 2016 INSTRUCTOR 3 0.50 0.50 0.50 0.50 TOTAL 0.50 050 0.50 0.50 City of Pasco, Washington 59 A Of 321 Budget GOLF COURSE FUND GOLF COURSE FUND REVENUES FUNCTION SUPPLIES OTHER SERVICESICHARGES SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL GOLF COURSE FUND EXPENDITURES 2013 2013 2014 2015 2015 2016 ACTUAL ACTUAL BUDGET AMENDED ACTUALS as BUDGET -CM levet-CM - ACTUAL ACTUAL BUDGET of 9130 NP REVENUE 1,577,548 1,525,660 as of 9130 37,015 185,105 CHARGES FOR SERVICES 1,405, 287 1,295,643 1,337,452 1,098,667 1,378,607 MISCELLANEOUS 306,263 275,710 313,812 245,346 282410 TOTAL REVENUES 1,711,550 1,571,353 1,651,264 1,344,013 1,661,017 BEGINNING FUND BALANCE 42,785 43,210 59,501 37,015 185,105 TOTAL RESOURCES $ 1,754,335 $ 1,614,563 $ 1,710,765 $ 1,381,028 $ 1,846,122 FUNCTION SUPPLIES OTHER SERVICESICHARGES SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL GOLF COURSE FUND EXPENDITURES 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET as of 9130 - 42 5,000 1,711,125 1,577,506 1,520,660 1,711,125 1,577,548 1,525,660 43,210 37,015 185,105 $ 1,754,335 $ 1,614,563 $ 1,710,765 2015 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP 32 5,000 1,279,739 1,525,134 1,279,771 1,530,134 101,257 315,988 $ 1,381,028 $ 11646,122 City of Pasco, Washington 60 Pacg@j9QJ cigtt321 This page is intentionally blank. Page 102 of 321 City of Pasco, Washington 61 20`16 Budget Senior Citizen Center CITY MANAGER ADMINISTRATIVE & COMMUNITY SERVICES DIRECTOR RECREATION SERVICES MANAGER RECREATION SPECIALIST ADMIN ASST I I I REGISTERED NURSE City of Pasco, Washington 62 Pacg@jAlA3dgjt321 SENIOR CENTER FUND REVENUES SENIOR CENTER FUND EXPENDITURES FUNCTION 2013 2014 2015 2015 2016 SUPPLIES ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM REVENUE 318,721 ENDING FUND BALANCE as of 9130 of 9/30 NP INTERGOVERNMENTAL $ 22,163 $ 18,492 $ 25,300 $ 9,378 $ 18,500 MISCELLANEOUS 73,719 63,203 50,750 37,235 38,084 INTERFUND TRANSFERS 190,000 240,000 250,000 187,497 250,000 TOTAL REVENUE 285,882 321,695 326,050 234,110 306,584 BEGINNING FUND BALANCE 43,617 10,778 9,038 17,300 5,949 TOTAL RESOURCES $ 329,499 $ 332,473 $ 335,088 $ 251,410 $ 312,533 SENIOR CENTER FUND EXPENDITURES FUNCTION 2013 ACTUAL SALARIES AND WAGES $ 133,996 PERSONNEL BENEFITS 47,838 SUPPLIES 6,856 OTHER SERVICES/CHARGES 130,031 CAPITAL OUTLAY - SUB -TOTAL EXPENDITURES 318,721 ENDING FUND BALANCE 10,778 TOTAL $ 329,499 2014 2015 AMENDED ACTUAL BUDGET NUMBER OF EMPLOYEES 2014 2015 as of 9/30 $ 136,351 $ 145,827 53,261 54,825 8,870 9,800 116,891 118,687 2015 2016 ACTUALS as BUDGET -CM level -CM Of 9130 NP $ 99,874 $ 141,693 39,159 56,409 4,441 6,300 77,216 103,304 315,173 329,139 220,690 307,706 17,300 5,949 30,720 4,827 $ 332,473 $ 335,088 $ 251,410 $ 312,533 Paqqe 104 of 321 City of Pasco, Washington 63 20T6 Budget SENIOR CENTER PERSONNEL SUMMARY POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2015 RECREATION SPECIALIST 1.00 1,00 1.00 1.00 REGISTERED NURSE 0.50 0.50 0.50 0.50 ADMINSTRATIVE ASSISTANT 1 1.00 1.00 1,00 1.00 TOTAL 2.50 2.50 2.50 2.50 Paqqe 104 of 321 City of Pasco, Washington 63 20T6 Budget MULTI -MODAL FACILITY FUND MULTI -MODAL FACILITY FUND REVENUES City of Pasco, Washington 64 Pag@jd g§ j%t321 2013 2014 2015 2016 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP REVENUE as of 9130 MISCELLANEOUS 74,185 76,348 68,850 54,446 77,100 TOTAL REVENUES 74,185 76,348 68,850 54,446 77,100 BEGINNING FUND BALANCE 71,561 98,065 120,150 124,207 165,216 TOTAL RESOURCES $ 145,746 $ 174,413 $ 189,000 $ 178,653 $ 242,316 MULTI -MODAL FACILITY FUND EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9/30 NP FUNCTION as of 9130 SUPPLIES 3,064 4,065 2,400 19,577 9,000 OTHER SERVICES/CHARGES 44,597 46,141 44,442 30,753 49,382 SUB -TOTAL EXPENDITURES 47,681 5D,206 46,842 50,330 58,382 ENDING FUND BALANCE 9B4O65 124,207 142,158 128,323 183,934 TOTAL $ 145,746 $ 174,413 $ 189,000 $ 178,653 $ 242,316 City of Pasco, Washington 64 Pag@jd g§ j%t321 SCHOOL IMPACT FUND SCHOOL INPACT FUND REVENUES FUNCTION INTERAGENCY PASS THROUGH SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL 2013 City of Pasco, Washington 65 2013 2014 2015 2015 2016 ACTUAL AMENDED BUDGET ACTUALS as AMENDED as of 9130 ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM REVENUE 1,500,000 1,566,997 as of 9130 of 9/30 NP CHARGES FOR SERVICES 1,566,200 1,301,325 1,500,000 1,050,500 1,500,000 MISCELLANEOUS 249 108 100 $ 1,501,600 - TOTAL REVENUES 1,566,449 1,301,433 1,500,100 1,050,500 1,500,000 BEGINNING FUND BALANCE 2,248 1,700 1,800 14,948 1,800 TOTAL RESOURCES $ 1,568,697 $ 1,303,133 $ 1,501,900 $ 1,065,448 $ 1,501,800 SCHOOL INPACT FUND EXPENDITURES FUNCTION INTERAGENCY PASS THROUGH SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL 2013 City of Pasco, Washington 65 2014 2015 2016 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM as of 9130 of 9130 NP 1,566,997 1,288,185 1,500,000 926,229 1,500,000 1,566,997 1,268,185 1,500,000 926,229 1,500,000 1,700 14,948 1,900 139,219 1.800 $ 1,568,697 $ 1,303,133 $ 1,501,900 $ 1,065,448 $ 1,501,600 PA 6 sing of 321 t REVENUE MISCELLANEOUS INTERFUND TRANSFERS TOTALREVENUES BEGINNING FUND BALANCE TOTAL RESOURCES RIVERSHQRE TRAIL & MARINA MAINTENANCE FUND RIVERSHORE TRAIL & MARINA MAINTENANCE FUND REVENUES 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET as of 9130 2015 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP 14,657 15,726 14,450 12,600 16,650 25,004 - 39,657 15,726 14,450 12,600 16,850 10,293 19,384 26,518 25,440 34,831 $ 49,950 $ 35,110 $ 40,968 $ 38,040 $ 51,681 RIVERSHQRE TRAIL & MARINA MAINTENANCE FUND EXPENDITURES City of Pasco, Washington 66 Pag@jd @3d-#1321 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET FUNCTION as of 9130 of 9130 NP OTHER SERVICESICHARGES 30,464 9,670 6,137 9,295 10,859 SUB -TOTAL EXPENDITURES 30,566 9,670 6,137 9,295 10,859 ENDING FUND BALANCE 19,384 25,440 34,831 28,745 40,822 TOTAL $ 49,950 $ 35,110 $ 40,968 $ 38,040 $ 51,681 City of Pasco, Washington 66 Pag@jd @3d-#1321 SPECIAL LODGING ASSESSMENT FUND SPECIAL LODGING ASSESSMENT FUND REVENUES 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET REVENUE as of 9130 2015 2015 ACTUALS as BUDGET -CM level -CM of 9130 NP TAXES $ 188,395 $ 254,797 $ 270,000 $ 190,275 $ 321,000 MISCELLANEOUS 8 10 BUDGET -CM level -CM - OTHER FINANCING SOURCES of 9130 11,491 $ 193,891 $ 248,173 $ 200,310 TOTAL REVENUES 188,403 266,298 270,000 190,275 321,000 BEGINNING FUND BALANCE 8,286 2,798 23,906 20,923 93,596 TOTAL RESOURCES $ 196,689 $ 269,096 $ 293,906 $ 211,196 $ 414,596 FUNCTION OTHER SERVICES/CHARGES SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL SPECIAL LODGING ASSESSMENT FUND EXPENDITURES 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM as of 9130 of 9130 NP $ 193,891 $ 248,173 $ 200,310 $ 194,262 $ 202,067 193,891 248,173 200,310 194,262 202,067 2,798 20,923 93,596 16,936 212,529 $ 196,689 $ 269,096 $ 293,906 $ 211,198 $ 414,596 Pacqe 108 of 321 City of Pasco, Washington 67 20#6 Budget REVENUE CHARGES FOR SERVICES MISCELLANEOUS INTERFUND TRANSFERS TOTAL REVENUES BEGINNING FUND BALANCE TOTAL RESOURCES LITTER ABATEMENT FUND LITTER ABATEMENT FUND REVENUES 2013 2014 2015 2015 2016 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP BUDGET of 9130 as of 9130 FUNCTION $ 5,000 $ 5,000 $ 5,000 $ 3,750 $ 5,000 7,507 6,677 7,500 4,688 7,500 SUB -TOTAL EXPENDITURES 14,488 5,000 3,753 5,000 12,507 11,877 17,500 12,191 17,500 6,633 4,652 1,326 2,452 3,001 $ 19,140 $ 16,529 $ 18,826 $ 14,643 $ 20,501 LITTER ABATEMENT FUND EXPENDITURES City of Pasco, Washington 68 PBg@jd@qdget321 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP FUNCTION as of 9130 OTHER SERVICES/CHARGES 14,488 14,077 15,825 10,151 15,905 SUB -TOTAL EXPENDITURES 14,488 14,077 15,825 10,151 15,905 ENDING FUND BALANCE 4,652 2,452 3,001 4,492 4,596 TOTAL $ 19,140 $ 16,529 $ 18,826 $ 14,643 $ 20,501 City of Pasco, Washington 68 PBg@jd@qdget321 REVOLVING ABATEMENT FUND REVOLVING ABATEMENT FUND REVENUES FUNCTION OTHER SERVICES/CHARGES SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL REVOLVING ABATEMENT FUND EXPENDITURES 2013 2013 2014 2015 2015 2016 ACTUAL AMENDED BUDGET ACTUALS as AMENDED as of 9130 ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM REVENUE 40,019 67,339 as of 9130 of 9130 NP CHARGES FOR SERVICES 36,917 21,668 5,000 11,862 18,000 FINES 8 FORFEITURES 48,356 91,902 92,000 102,038 115,500 MISCELLANEOUS 24,609 2,527 2,300 1,958 2,300 TOTAL REVENUES 109,882 116,097 99,300 115,858 135,800 BEGINNING FUND BALANCE 281,738 324,281 357,004 366,914 417,000 TOTAL RESOURCES S 391,620 $ 440,378 $ 456,304 $ 462,772 $ 552,800 FUNCTION OTHER SERVICES/CHARGES SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL REVOLVING ABATEMENT FUND EXPENDITURES 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM as of 9130 of 9130 NP 67,339 73,464 39,234 69,211 40,019 67,339 73,464 39,234 69,211 40,019 324,281 366,914 417,070 413,561 512,781 $ 391,620 $ 440,378 $ 456,304 $ 482,772 $ 552,800 Paqqe 110 of 321 City of Pasco, Washington 69 20T5 Budget TRAC DEVELOPMENT & OPERATING FUND TRAC DEVELOPMENT & OPERATING FUND REVENUES 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET REVENUE as of 9130 2015 2016 ACTUALS as BUDGET -CM level -CM of 9/30 NP TAXES $ 243,204 $ 251,069 $ 257,000 $ 195,920 $ 331,000 MISCELLANEOUS 192 238 200 ACTUAL 200 OTHER FINANCING SOURCES of 9130 45,046 - INTERFUND TRANSFERS 103,000 103,000 264,575 250,000 195,646 TOTAL REVENUE 346,396 369,353 257,200 195,920 331,200 BEGINNING FUND BALANCE 76,403 202,394 196,949 203,045 204,149 TOTAL RESOURCES $ 422,799 $ 571,747 $ 454,149 $ 398,965 $ 535,349 FUNCTION OTHER SERVICES/CHARGES DEBT SERVICE SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL TRAC DEVELOPMENT & OPERATING FUND EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP as of 9130 117,969 264,575 250,000 195,646 250,000 102,436 104,127 - 220,405 368,702 250,000 495,646 250,000 202,394 203,045 204,149 203,319 285,349 $ 422,799 $ 571,747 $ 454,149 3 398,965 $ 535,349 City of Pasco, Washington 70 Pag6�411dq&321 PARK DEVELOPMENT FUND PARK DEVELOPMENT FUND REVENUES FUNCTION OTHER SERVICES/CHARGES INTERFUND TRANSFERS SUS -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL PARK DEVELOPMENT FUND EXPENDITURES 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET as of 9130 2015 2016 ACTUALS as BUDGET -CM level -CM Of 9130 NP $ - 2013 2014 2015 2015 2016 26,985 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM REVENUE 6,574 700,000 as of 9130 of 9130 NP CHARGES FOR SERVICES 157,581 211,647 213,000 154,097 185,000 MISCELLANEOUS 2,495 1,917 1,800 2,148 1,800 TOTAL REVENUES 160,076 213,564 214,800 156,245 186,800 BEGINNING FUND BALANCE 1,741,738 1,821,814 1,965,525 1,994,392 1,710,325 TOTAL RESOURCES $ 1,901,814 $ 2,035,378 $ 2,200,325 $ 2,150,637 $ 11897,125 FUNCTION OTHER SERVICES/CHARGES INTERFUND TRANSFERS SUS -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL PARK DEVELOPMENT FUND EXPENDITURES 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET as of 9130 2015 2016 ACTUALS as BUDGET -CM level -CM Of 9130 NP $ - $ 14,001 $ 25,000 80,000 26,985 490,000 6,574 675,000 80,000 40,986 490,000 6,574 700,000 1,821,814 1,994,392 1,710,325 2,144,063 1,197,125 $ 1,901,814 $ 2,035,378 $ 2,200,325 $ 2,150,637 $ 1,897,125 City of Pasco, Washington 71 Pd o�Bug tof 321 CAPITAL IMPROVEMENT REET IST QTR FUND CAPITAL IMPROVEMENT REET 1ST QTR FUND REVENUES CAPITAL IMPROVEMENT REET 1ST QTR FUND EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP REVENUE as of 9/30 TAXES $ 1,019,913 $ 1,198,244 $ 1,096,000 $ 975,044 $ 1,200,000 MISCELLANEOUS 3,066 (8,556) 26,000 14,809 26,000 OTHER FINANCING SOURCES 2,976,167 188,759 2,978,778 4,548,572 2,207,778 TOTAL REVENUE 11022,979 1,378,447 1,122,000 989,853 1,226,000 BEGINNING FUND BALANCE 2,262,793 2,976,167 3,732,517 Z.732,517 2,978,778 TOTAL RESOURCES $ 3,285,772 $ 4,354,614 $ 4,854,517 $ 4,722,$70 $ 4,204,778 CAPITAL IMPROVEMENT REET 1ST QTR FUND EXPENDITURES City of Pasco, Washington 72 Pag@1AVQ&321 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP FUNCTION as of 9130 INTERFUND TRANSFERS $ 309,605 $ 622,097 $ 1,875,739 $ 173,798 $ 1,997,000 SUB -TOTAL EXPENDITURES 309,605 622,097 11875,739 173,798 1,997,000 ENDING FUND BALANCE 2,976,167 3,732,517 2,978,778 4,548,572 2,207,778 TOTAL $ 3,285,772 $ 4,354,614 $ 4,854,517 $ 4,722,370 $ 4,204,778 City of Pasco, Washington 72 Pag@1AVQ&321 ECONOMIC DEVELOPMENT FUND ECONOMIC DEVELOPMENT FUND REVENUES ECONOMIC DEVELOPMENT FUND EXPENDITURES 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM REVENUE as of 9130 of 9130 NP INTERGOVERNMENTAL 209,965 303,425 256,000 134,286 270,000 MISCELLANEOUS 977,080 952,322 1,147,600 575,021 1,051,000 OTHER FINANCING SOURCES - 1,626,623 700,000 700,057 - TOTAL REVENUE 1,187,045 2,882,370 2,103,600 1,409,364 1,321,000 BEGINNING FUND BALANCE 920,871 1,103,292 152,690 1,791,809 561,480 TOTAL RESOURCES $ 2,107,916 $ 3,985,662 $ 2,256,290 $ 3,201,173 $ 1,882,480 ECONOMIC DEVELOPMENT FUND EXPENDITURES City of Pasco, Washington 73 2015 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP $ 40,639 $ 115,000 406,720 528,385 465,000 730,552 485,457 1,177,911 1,593,842 2,023,262 288,638 $ 3,201,173 $ 1,882,480 Pane114 l of 321 2013 2014 2015 AMENDED ACTUAL ACTUAL BUDGET FUNCTION as of 9130 SUPPLIES $ 15,905 $ 23,795 $ 26,000 OTHER SERVICESICHARGES 293,623 374,274 555,497 INTERFUND TRANSFERS 450,000 200,000 125,000 CAPITAL OUTLAY - 1,350,688 257,760 DEBT SERVICE 245,096 245,096 730,553 SUB -TOTAL EXPENDITURES 1,004,624 2,193,853 1,694,810 ENDING FUND BALANCE 1,503,292 11791,809 561,480 TOTAL $ 2,107,916 $ 3,985,662 $ 2,256,290 City of Pasco, Washington 73 2015 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP $ 40,639 $ 115,000 406,720 528,385 465,000 730,552 485,457 1,177,911 1,593,842 2,023,262 288,638 $ 3,201,173 $ 1,882,480 Pane114 l of 321 STADIUMICONVENTION CENTER FUND STADIUMICONVENTION CENTER FUND REVENUES FUNCTION OTHER SERVICES/CHARGES DEBT SERVICE SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL STADIUMICONVENTION CENTER FUND EXPENDITURES 2013 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM REVENUE of 9130 NP as of 9130 of 9130 NP TAXES $ 243,2D4 $ 251,069 $ 257,000 $ 195,920 $ 331,000 MISCELLANEOUS 32,467 31,008 32,870 12,202 30,870 OTHER FINANCING SOURCES - 15,046 - 263,030 - INTERFUND TRANSFERS 65,516 400,000 - $ 411,838 - TOTAL REVENUES 275,671 697,123 289,870 208,122 351,870 BEGINNING FUND BALANCE 136,167 102,157 41,869 514,637 65,516 TOTAL RESOURCES $ 411,838 $ 799,280 $ 331,739 $ 722,759 $ 427,386 FUNCTION OTHER SERVICES/CHARGES DEBT SERVICE SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL STADIUMICONVENTION CENTER FUND EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM Bevel -CM ACTUAL ACTUAL BUDGET of 9130 NP as of 9130 182,493 157,455 139,035 102,123 135,842 127,188 127,188 127,188 127,187 127,188 309,681 284,643 266,223 229,310 263,030 102,157 514,637 65,516 493,449 164,356 $ 411,838 $ 799,280 $ 331,739 $ 722,759 $ 427,386 City of Pasco, Washington 74 Pam 1 ��,oft321 DEBT SERVICE FUNDS City of Pasco, Washington 75 Paw Budgof 321 Budget LID GUARANTEE AND DEBT SERVICE FUND LID GUARANTEE AND DEBT SERVICE FUND REVENUES LID GUARANTEE AND DEBT SERVICE FUND EXPENDITURES 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP REVENUE as of 9130 of 9130 NP MISCELLANEOUS 158,693 278,264 171,770 120,143 192,270 OTHER FINANCING SOURCES 129,074 414,593 184,524 96,721 101,172 TOTAL REVENUES 287,767 692,857 171,770 120,143 192,270 BEGINNING FUND BALANCE 1,172,461 1,021,733 1,032,081 1,103,155 919,327 TOTAL RESOURCES $ 1,460,228 $ 1,714,590 $ 1,203,851 $ 1,223,298 $ 1,111,597 LID GUARANTEE AND DEBT SERVICE FUND EXPENDITURES City of Pasco, Washington 76 Pao61 A�7d,oft321 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET FUNCTION as of 9130 of 9130 NP INTERFUND TRANSFERS 129,074 100,000 - DEBT SERVICE 295,143 611,435 184,524 96,721 101,172 SUB -TOTAL EXPENDITURES 438,495 611,435 284,524 96,721 101,172 ENDING FUND BALANCE 1,021,733 1,103,155 919,327 1,126,577 1,010,425 TOTAL $ 1,460,2213 $ 1,714,590 $ 1,203,851 $ 1,223,298 $ 1,111,597 City of Pasco, Washington 76 Pao61 A�7d,oft321 GENERAL OBLIGATION BOND FUND G.O. BOND FUND REVENUES FUNCTION OTHER SERVICESICHARGES DEBT SERVICE SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL G.O. BOND FUND EXPENDITURES 2013 ACTUAL 2014 2015 AMENDED ACTUAL BUDGET as of 9130 2015 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP $ - 2013 2014 2015 2015 2016 33,150 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM REVENUE 13,875 122,300 as of 9130 of 9/30 NP TAXES $ 514,967 $ 148,595 $ 143,000 $ 68,101 $ 138,000 MISCELLANEOUS 596 134 100 100 TOTAL REVENUES 515,563 148,729 143,100 68,101 138,100 BEGINNING FUND BALANCE 336,638 333,497 356,194 349,076 112,657 TOTAL RESOURCES $ 852,201 $ 482,226 $ 499,294 $ 417,177 $ 250,757 FUNCTION OTHER SERVICESICHARGES DEBT SERVICE SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL G.O. BOND FUND EXPENDITURES 2013 ACTUAL 2014 2015 AMENDED ACTUAL BUDGET as of 9130 2015 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP $ - $ 100,000 $ - 518,704 33,150 128,100 13,875 122,300 518,704 133,150 128,100 13,875 122,300 333,497 349,076 371,194 403,302 128,457 $ 852,201 $ 482,226 $ 499,294 $ 417,177 $ 250,757 City of Pasco, Washington 77 2N%ua9 et 321 This page [eft blank City of Pasco, Washington 78 Pagmd j9d§4t321 CONSTRUCTION FUNDS Pae 120 of 321 City of Pasco, Washington 79 2 6 Budget GENERAL CAPITAL PROJECTS FUND GENERAL CAPITAL PROJECT FUND REVENUES FUNCTION SUPPLIES OTHER SERVICESICHARGES INTERFUND TRANSFERS CAPITAL OUTLAY DEBT SERVICE SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL GENERAL CAPITAL PROJECT FUND EXPENDITURES 2013 ACTUAL 119,365 5 193 2014 2013 2014 2016 2015 2016 3,723,529 as of 9130 43,122 AMENDED 3 399 285 000 198,773 ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM REVENUE $ 15,163,997 $ 1,342,600 $ as of 9130 of 9130 NP INTERGOVERNMENTAL 1,740,087 1,762,499 2,654,724 204,678 9,883,000 MISCELLANEOUS OTHER FINANCING SOURCES 50,000 118,500 140,000 INTERFUND TRANSFERS 4,478,413 1,677,116 12,335,912 1,104,563 71,000 11,131,000 TOTAL REVENUES 6,268,500 3,558,115 15,130,636 1,309,241 21,085,000 BEGINNING FUND BALANCE 1,033,325 195,773 33,361 33,359 362,570 TOTAL RESOURCES $ 7,301,825 $ 3,756,886 $ 15,163,997 $ 1,342,600 $ 21,447570 FUNCTION SUPPLIES OTHER SERVICESICHARGES INTERFUND TRANSFERS CAPITAL OUTLAY DEBT SERVICE SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL GENERAL CAPITAL PROJECT FUND EXPENDITURES 2013 ACTUAL 119,365 5 193 2014 2015 10,956,542 AMENDED ACTUAL BUDGET 3,723,529 as of 9130 43,122 1,048,885 3 399 285 000 2015 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP 37,480 19 222 7,078,494 3,677,008 10,956,542 3,385,413 20,110,000 7,103,052 3,723,529 12,290,427 3,442,115 20,110,000 198,773 33,359 2,873,570 (2,099,515) 1,337,570 $ 7,301,825 $ 3,756,8BB $ 15,163,997 $ 1,342,600 $ 21,447,570 City of Pasco, Washington 80 Pag@j %%1,9&321 ENTERPRISE FUND Page 122 of 321 City of Pasco, Washington 81 2016 Budget IlAAESOlR PV! I flaIw N. I I awM NAMI I PIN WATER CROSS WATER STORMWAT[R biSTRIRI€TiOM CONNECTION T0.P3TMlNT WAWCROSS wI,ETERW8IER Q11£r KANT CIRERATOA,1 Lw WORREA COMNECnm OPERI;TOA MELNA. C }P£LUWST NGVT WAVYHEAVY HINT EQGIRMTwT EQIIPYKNT XEAVT OPTAETORS EOtNPM[XT OMdkATOR EQUIPMENT OPERATOR OPEAATO0. Vn',m MRW�YIEYAHCi MV• Viia'N MAN€UYMKI NOR�Ii ML�N1TMa Wyrc€a E Public Warks -Utilities crrT MANAcea 0u8_K WORMS WRECTOR RJPI>CwaRE3 ViSrRVM[NT ncK SIAl0.1NnNOlHT M OMMON MANAGER Saewt��YH€ -' � 1'DNPi 1S5T! nCX€f1CiAN wI,ETERW8IER SEWER gySSECTgN TRIRT f£NT PIJ,#Y �� OH[T R.AwT OP£LLTE1R CEA4 WOERm NGVT HINT EQGIRMTwT OPERMORS OPFAIIOR PµnlE€iHi W'nP'flR VHISTf MYNi]T�MI:€ RGI I Pw OAXAGE0."=ER M MOLES$ WATERMUSE OUR PWAT OPGUTOR VW Rr OPERATOR POMP .ImkwG HEAP [Qv—T-T OPUCSTORS MRIGATK N PUMP M[CwNK 11lAYr EQU-SWKT 10PERATLOS HIA "Eft 9T PR)P€TR City of Pasco, Washington 82 Paggoj3jLqt�21 WATERISEWER UTILITIES FUND WATERISEWER UTILITIES FUND REVENUES Page 124 of 321 City of Paseo, Washington 83 2016 Budget 2013 2014 2015 2015 2016 NUMBER OF EMPLOYEES 2014 2015 2016 PUBLIC WORKS DIRECTOR AMENDED 0.60 0.60 0.63 ACTUAL ACTUAL BUDGET ACTUALS as of BUDGET -CM level -CM REVENUE 1.00 1.00 as of 9/30 9130 NP INTERGOVERNMENTAL 41,848 22,818 50,000 27,183 - CHARGES FOR SERVICES 17,850,903 19,895,362 20,369,655 15,637,764 22,324,587 MISCELLANEOUS 213,716 232,894 155,900 131,954 187,968 OTHER FINANCING SOURCES 13,221,020 3,385,400 11,774,500 1,352,835 12,294,000 INTERFUND TRANSFERS 450,000 200,000 3.00 2.753 WW PLANT OPERATOR TOTAL REVENUES 31,777,487 23,736,474 32,350,055 17,152,489 34,806,555 BEGINNING FUND BALANCE 5,822,906 10,249,250 9,946,994 10,609,078 14,260,220 TOTAL RESOURCES $ 37,600,393 $ 33,985,724 $ 42,297,049 $ 27,761,567 $ 49,066,775 2.00 WATERISEWER UTILITIES FUND EXPENSES 14.50 16.50 18.00 2013 2014 2016 2015 2016 UTILITY MAINT. WORKER 5.00 AMENDED 8.00 11.00 DEPARTMENT ASSISTANT II ACTUAL ACTUAL BUDGETas ACTUALS as of BUDGET -CM level -CM FUNCTION 0.50 0.50 of 9130 Bl30 NP SALARIES AND WAGES $ 21599,431 $ 2,830,832 $ 3,386,306 $ 2,356,761 $ 3,566,435 PERSONNEL BENEFITS 1,113,138 1,330,549 1,503,878 1,021,690 1,676,042 SUPPLIES 1,121,492 1,492,845 2,128,811 1,257,046 1,980,410 OTHER SERVICES/CHARGES 7,291,511 7,738,008 9,003,568 6,571,559 8,996,524 INTERFUND TRANSFERS 252,913 50,180 14,495 - CAPITAL OUTLAY 8,312,043 4,447,590 9,023,804 1,895,349 20,532,000 DEBT SERVICE 6,660,615 5,486,642 4,975,967 3,870,521 5,682,916 SUB -TOTAL EXPENDITURES 27,351,143 23,376,646 30,036,829 16,972,926 42,434,327 ENDING FUND BALANCE 10,249,250 10,609,078 12,260,220 10,788,641 6,632,448 TOTAL $ 37,600,393 $ 33,985,724 $ 42,297,049 $ 27,761,567 $ 49,066,775 Page 124 of 321 City of Paseo, Washington 83 2016 Budget PUBLIC WORKS UTILITIES POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2016 PUBLIC WORKS DIRECTOR 0,60 0.60 0.60 0.63 OPERATIONS MANAGER 0,70 0.70 0.70 0.70 PLANTS DIVISION MGR 1.00 1.00 1.00 ASST. OPERATIONS MANAGER PUBLIC WORKS DIVISION MANAGER LEAD WATER OPERATOR 0.30 1.00 1.16 1.00 1.16 1.00 3.17 1.00 CHIEF OPERATOR - PLANTS INSTRUMENTATION TECH 2.00 1.00 2.00 1.00 2.00 1.00 2.00 1.00 LEAD PWRF OPERATOR 1.00 1.00 1,00 1.00 COLLECTION LEAD WORKER 1.00 1.00 1.00 1.00 LAB TECHNICIAN 1.00 1.00 1.00 1.00 WATER PLANT OPERATOR 3.00 3.00 3.00 3.00 WW PLANT OPERATOR 6.00 7.00 8,00 8.00 H.E. OPER.MfECHANIC 1.00 1.00 1.00 1.00 PUMP MECHANIC 1.00 CROSS CONNECT SPECIALIST 2.00 2.00 2.00 2.00 HEAVY EQUIP. OPERATOR 14.50 16.50 18.00 17.00 SAFETYIENV SPECIALIST 1.00 1.00 1.00 UTILITY MAINT. WORKER 5.00 6.00 8.00 11.00 DEPARTMENT ASSISTANT II 0.50 TECH 1 0.50 0.50 1.00 ADMINISTRATIVE ASSISTANT II 0.50 ADMINISTRATIVE ASSISTANT 1 1.50 0.85 0.85 1.65 PLANT UTILITY WORKER 2.00 2.00 2.00 TOTALt-- 46.10 50.31 54.81 1 57.65 Page 124 of 321 City of Paseo, Washington 83 2016 Budget This page is intentionally blank. City of Pasco, Washington 84 Pagp IJA ,f 21 INTERNAL SERVICE FUNDS P q City of Pasco, Washington 85 6 1 f 321 dget ADMIN ASSISTANT I Equipment Rental CITY MANAGER PUBLIC WORDS DIRECTOR PUBLIC WORKS SUPERINTENDENT DIVISION MANAGER CHIEF MECHANIC MECHANICS City of Pasco, Washington 86 Pag�bJWXug�e�21 EQUIPMENT RENTAL OPERATING FUNDS EQUIPMENT RENTAL OPERATING FUND REVENUES GOVERNMENTAL TYPE ACTIVITIES 2013 2014 2015 1015 ACTUAL ACTUAL AMENDED ACTUALS as of BUDGET REVENUE as of 9130 9130 2016 BUDGET -CM level -CM NP MISCELLANEOUS 863,960 969,390 1,168,336 880,206 1,044,074 OTHER FINANCING SOURCES AMENDED BUDGET 19,534 BUDGET -CM level -CM TOTAL REVENUES 863,960 988,924 1,168,336 880,206 1,044,074 BEGINNING FUND BALANCE 263,497 107,343 35,225 48,020 36,400 TOTAL RESOURCES $ 1,127,457 _L 1,096,267 $ 1,203,561 $ 928,226 $ 1,080,474 FUNCTION SALARIES AND WAGES PERSONNEL BENEFITS SUPPLIES OTHER SERViCESICHARGES CAPITAL OUTLAY SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL EQUIPMENT RENTAL OPERATING FUND EXPENDITURES GOVERNMENTAL TYPE ACTIVITIES 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as of BUDGET -CM level -CM as of 9130 9130 NP $ 231,436 $ 239,376 $ 291,009 $ 186,838 $ 200,157 92,975 104,781 131,422 84,381 93,778 556,674 556,092 599,250 354,012 552,950 139,029 147,998 137,372 103.565 156,854 2.00 2.00 8,100 DEPARTMENT ASSISTANT II - 1,020,114 1,048,247 1,167,153 728,796 1,003,739 107,343 48,020 36,408 199,430 76,735 $ 1,127,457 $ 1,096,267 $ 1,203,561 $ 928,226 $ 1,080,474 Page 128 of 321 City of Pasco, Washington 87 2016 Budget EQUIPMENT RENTAL PERSONNEL SUMMARY POSITION 2013 NUMBER OF EMPLOYEES 2014 2015 2016 PUBLIC WORKS DIRECTOR 0.11 OPERATIONS MANAGER 0.15 0.15 0.15 0.15 ASST. OPERATIONS MANAGER 0.35 0.50 0.50 PW DIVISION MANAGER 0.33 CHIEF MECHANIC 1.00 1.00 1.00 1.00 MECHANIC 2,00 2.00 2.00 2.00 DEPARTMENT ASSISTANT II 0.50 ENGINEER TECH 1 1.00 1.00 ADMINISTRATIVE ASSISTANT 1 0.311 0.950.95 1.10 TOTAL 4.30 5.60 5.601 4.69 Page 128 of 321 City of Pasco, Washington 87 2016 Budget REVENUE MISCELLANEOUS OTHER FINANCING SOURCES TOTALREVENUES BEGINNING FUND BALANCE TOTALRESOURCES EQUIPMENT RENTAL OPERATING FUNDS EQUIPMENT RENTAL OPERATING FUND REVENUES BUSINESS TYPE ACTIVITIES 2013 2014 2015 2015 2016 2016 AMENDED ACTUALS as of BUDGET -CM level -CM ACTUAL ACTUAL BUDGET 9/30 NP BUDGET 9130 as of 9130 FUNCTION $ 325,567 $ 337,458 $ 360,379 $ 280,137 $ 317,506 $ 44,173 8,320 $ 55,903 $ 52,008 - 325,567 345,778 360,379 280,137 317,506 169,842 154,335 110,069 164,656 100,750 $ 495,409 $ 500,113 $ 470,448 $ 444,793 $ 418,256 EQUIPMENT RENTAL OPERATING FUND EXPENSES BUSINESS TYPE ACTIVITIES City of Pasco, Washington 88 Pag�� .64e�21 2013 2014 2016 2015 2016 AMENDED ACTUALS as of BUDGET -CM level -CM ACTUAL ACTUAL BUDGET 9130 NP FUNCTION as of 9/30 SALARIES AND WAGES $ 44,173 $ 59,148 $ 55,903 $ 52,008 $ 87,031 PERSONNEL BENEFITS 16,355 24,426 25,699 22,021 40,788 SUPPLIES 233,132 215,694 251,600 135,386 224,600 OTHER SERVICES/CHARGES 47,394 38,189 36,496 26,787 63,815 SUB -TOTAL EXPENDITURES 341,054 335,457 369,696 236,202 416,234 ENDING FUND BALANCE 154,355 164,656 100,750 208,591 2,022 TOTAL $ 495,409 $ 500,113 $ 470,448 $ 444,793 $ 418,256 City of Pasco, Washington 88 Pag�� .64e�21 EQUIPMENT RENTAL REPLACEMENT FUNDS EQUIPMENT RENTAL REPLACEMENT FUND REVENUES GOVERNMENTAL TYPE ACTIVITIES FUNCTION SUPPLIES CAPITAL OUTLAY DEBT SERVICE SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL EQUIPMENT RENTAL REPLACEMENT FUND EXPENDITURES GOVERNMENTAL TYPE ACTIVITIES 2013 2013 2014 2015 2015 2016 ACTUAL AMENDED BUDGET ACTUALS as AMENDED as of 9130 ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM REVENUE $ 686,787 as of 9/30 of 9130 NP MISCELLANEOUS 1,050,719 1,011,302 1,105,451 865,904 1,367,612 OTHER FINANCING SOURCES 96,000 64,827 487,457 487,456 496,606 INTERFUND TRANSFERS 212,000 392,850 170,280 170,280 $ 5,917,885 TOTAL REVENUES 1,356,719 1,468,979 1,763,188 1,523,640 1,864,218 BEGINNING FUND BALANCE 3,776,974 4,448,906 4,595,482 3,129,025 5,030,757 TOTAL RESOURCES $ 5,135,693 $ 5,917,885 $ 6,358,670 $ 4,652,665 $ 6,894,975 FUNCTION SUPPLIES CAPITAL OUTLAY DEBT SERVICE SUB -TOTAL EXPENDITURES ENDING FUND BALANCE TOTAL EQUIPMENT RENTAL REPLACEMENT FUND EXPENDITURES GOVERNMENTAL TYPE ACTIVITIES 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM as of 9130 of 9130 NP $ - $ 15,824 $ 147,347 $ 67,160 $ 686,787 1,373,036 1,180,566 859,313 1,662,710 - 1,400,000 - 686,787 2,788,860 1,327,913 926,473 1,662,710 4,448,906 3,129,025 5,030,757 3,726,192 5,232,265 $ 5,135,693 $ 5,917,885 $ 6,358,670 $ 4,652,665 $ 6,894,975 Page 130 of 321 City of Pasco, Washington 89 20 6 Budget EQUIPMENT RENTAL REPLACEMENT FUND REVENUES BUSINESS TYPE ACTIVITIES City of Pasco, Washington 90 @nl-321 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM ievel-CM ACTUAL ACTUAL BUDGET of 9/30 NP REVENUE as of 9130 MISCELLANEOUS 467,960 503,389 791,880 603,498 597,725 TOTAL REVENUES 625,960 503,389 791,880 603,498 _ 597,725 BEGINNING FUND BALANCE 1,885,263 2,221,827 2,057,657 2,077,506 2,501,355 TOTAL RESOURCES $ 21511,223 $ 2,725,216 $ 2,849,537 $ 2,681,004 $ 3,099,060 EQUIPMENT RENTAL REPLACEMENT FUND EXPENSES BUSINESS TYPE ACTIVITIES 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP FUNCTION as of 9130 CAPITAL OUTLAY $ 289,396 $ 647,710 $ 348,182 $ 327,711 $ 442,000 SUB -TOTAL EXPENDITURES 289,396 647,710 348,182 327,711 442,000 ENDING FUND BALANCE 2,221,827 2,077,506 2,501,355 2,353,293 2,657,080 TOTAL $ 2,511,223 $ 2,725,216 $ 2,849,537 $ 2,681,004 $ 3,099,080 City of Pasco, Washington 90 @nl-321 MEDICAL/DENTAL INSURANCE FUND MEDICALIDENTAL INSURANCE FUND REVENUES MEDICAUDENTAL INSURANCE FUND EXPENDITURES 2013 2014 2015 2015 2016 3,654,372 AMENDED 3,654,372 AMENDED ACTUAL BUDGET FUNCTION ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM REVENUE 5,430,129 SUB -TOTAL EXPENDITURES as of 9130 of 9130 NP CHARGES FOR SERVICES $ 4,882,241 $ 5,687,187 $ 5,765,509 $ 4,364,362 $ 6,160,689 MISCELLANEOUS 701 1,278 1,250 1,583 2,000 TOTAL REVENUES 4,882,942 5,686,465 5,766,759 4,365,945 6,162,689 BEGINNING FUND BALANCE 141,404 179,396 689,156 1,016,963 1,017,272 TOTAL RESOURCES $ 5,024,346 $ 5,867,861 $ 6,455,915 $ 5,382,908 $ 7,179,961 MEDICAUDENTAL INSURANCE FUND EXPENDITURES 2015 2013 2014 2015 of 9130 NP 3,654,372 AMENDED 3,654,372 ACTUAL ACTUAL BUDGET FUNCTION $ 7,179,961 as of 9130 OTHER SERVICES/CHARGES 4,844,950 4,850,896 5,430,129 SUB -TOTAL EXPENDITURES 4,644,950 4,850,898 5,430,129 ENDING FUND BALANCE 179,396 1,016,963 1,025,786 TOTAL $ 5,024,346 $ 5,867,861 $ 6,455,915 2015 2016 ACTUALS as BUDGET -CM level -CM of 9130 NP 3,654,372 5,432,407 3,654,372 5,432,407 1,728,536 1,747,554 $ 5,382,908 $ 7,179,961 Page 132 of 321 City of Pasco, Washington 91 20% Budget CENTRAL STORE FUND CENTRAL STORE FUND REVENUES City of Pasco, Washington 92 PagS)j ��jnE 321 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET REVENUE as of 9130 of 9130 NP MISCELLANEOUS $ 17 $ 12 $ $ $ TOTAL REVENUES 17 12 - BEGINNING FUND BALANCE 12,828 12,845 12,329 12,857 11,829 TOTAL RESOURCES $ 12,845 $ 12,857 $ 12,329 $ 12,857 $ 11,829 CENTRAL STORE FUND EXPENDITURE 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET FUNCTION as of 9130 of 9/30 NP SUPPLIES $ $ $ 500 $ $ 500 SUB -TOTAL EXPENDITURES 500 500 ENDING FUND BALANCE 12,845 12,857 11,829 12,857 11,329 TOTAL $ 12,845 $ 12,857 $ 12,329 $ 12,857 $ 11,829 City of Pasco, Washington 92 PagS)j ��jnE 321 FUND City of Pasco, Washington 93 P0,%eB� g ge tof 321 OLD FIRE PENSION FUND OLD FIRE PENSION FUND REVENUES OLD FIRE PENSION FUND EXPENSES 2013 2014 2015 2016 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9/30 NP REVENUE as of 9130 INTERGOVERNMENTAL 47,624 51,705 51,700 54,506 51,700 MISCELLANEOUS 450,877 230,735 147,337 40,019 47,337 TOTAL REVENUES 498,501 282,440 199,037 94,525 99,037 BEGINNING FUND BALANCE 1,808,460 2,150,759 2,650,369 2,326,320 2,379,980 TOTAL RESOURCES $ 2,306,961 $ 2,433,199 $ 2,849,406 $ 2,420,845 $ 2,479,017 OLD FIRE PENSION FUND EXPENSES City of Pasco, Washington 96 PaA%j33gg9f 321 2013 2014 2015 2015 2016 AMENDED ACTUALS as BUDGET -CM level -CM ACTUAL ACTUAL BUDGET of 9130 NP FUNCTION as of 9/30 SALARIES AND WAGES $ 152,287 $ 102,971 $ 116,980 $ 89,557 $ 108,900 OTHER SERVICESICHARGES 3,915 3,908 28,39B 2,547 31,039 SUB -TOTAL EXPENDITURES 156,202 106,879 145,376 92,104 139,939 ENDING FUND BALANCE 2,150,759 2,326,320 2,704,028 2,328,741 2,339,078 TOTAL $ 2,306,961 $ 2,433,199 $ 2,849,406 $ 2,420,845 $ 2,479,017 City of Pasco, Washington 96 PaA%j33gg9f 321 REVENUE MISCELLANEOUS TOTALREVENUES BEGINNING FUND BALANCE TOTAL RESOURCES OLD FIRE MEDICAL (OPEB) FUND OLD FIRE MEDICAL (OPER) FUND REVENUES 2013 2014 2015 2015 2016 2016 AMENDED ACTUAL AMENDED BUDGET ACTUAL ACTUAL BUDGET ACTUALS as BUDGET -CM level -CM as of 9130 of 9130 as of 9130 of 9130 NP $ 558,639 $ 259,186 $ 60,150 $ 34,946 $ 40,150 558,639 259,186 60,150 34,946 40,150 2,074,744 2,516,722 2,650,369 2,650,370 2,577,497 $ 2,633,383 $ 2,775,906 $ 2,710,519 $ 2,685,316 $ 2,617,647 OLD FIRE MEDICAL (OPER) FUND EXPENSES ri s 97 2�Bu g tof 321 City at Pasco, Washington 2013 2014 2015 2015 2016 ACTUAL ACTUAL AMENDED BUDGET ACTUALS as BUDGET -CM level -CM FUNCTION as of 9130 of 9130 NP PERSONNEL BENEFITS $ 113,471 $ 122,556 $ 105,048 $ 78,786 $ 105,039 OTHER SERVICES/CHARGFS 3,190 2,982 27,974 2,232 28,786 SUB -TOTAL EXPENDITURES 116,661 125,536 133,022 81,018 133,625 ENDING FUND BALANCE 2,516,722 2,650,370 2,577,497 2,604,298 2,483,822 TOTAL $ 2,633,383 $ 2,775,908 $ 2,710,519 $ 2,685,316 $ 2,617,647 ri s 97 2�Bu g tof 321 City at Pasco, Washington This page left blank City of Pasco, Washington 98 PageltlZd x&321 CAPITAL PROJECTS Page 138 of 321 City of Pasco 99 2016 Budaet This page left blank Page 139 of 321 City of Pasco 100 2016 Budget ORDINANCE NO. AN ORDINANCE ADOPTING THE CITY OF PASCO CAPITAL PROJECTS BUDGET FOR THE YEAR 2016 WHEREAS, subsequent to due notice and public hearing thereon, the City Council for the City of Pasco has approved THE CITY COUNCIL OF THE CITY OF PASCO DOES ORDAIN AS FOLLOWS: Section One: That the capital projects are hereby authorized as detailed. The following schedule summarizes newly authorized CAPITAL PROJECTS BUDGET FOR THE YEAR 2016 2016 Annual Portion CIP Budget Increases New CIP Budget Status Pro-ect Title 2015 Decreases Projects 2016 Continuing Continuing Continuing Continuing New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) Continuing New (in 2016) intinuing antinuing Continuing Continuing Continuing Continuing Park & Facilities 2015 Continued Three Rivers Park Animal Shelter Facility 30 Acre Park NW Quad Railroad Underpass Trail Total Park & Facilities (2015) Park & Facilities New 2016 Highland Park Lighting Specialty Kitchen Flooring Replacement Peanuts Park Restoration Soccer Facility Community Center Schlagle Park Improvements Chiawana Park Shelter Total Park & Facilities (2016) Total Park & Facilities E & 1 Develop (2015 Continued) Broadmoor Development E & I Develop (2016 New) Broadmoor Planned Action SEPA Total E & I Development Construction (2016) Total E & I Development Construction Street Construction (2015 Continued) Roads Road 68 Improvements (Phase II) Argent Road (Road 44 to 20th Ave) Oregon Ave (SR397) - Phase 1 Oregon Ave (SR397) - Phase 2 Oregon Ave (SR397) - Entrance (Ph 2 Intersection) Dual RT SB Road 68 455,000 General Projects 12015 Continued) 203,000 203,000 950,000 Continuing Fire Alerting Systems 285,000 1, 643,000 285,000 Continuing Fire station Alerting Devices 45,000 - 55,000 45,000 Continuing Police Station 6,747,429 2,771,000 9,518,429 Continuing Financial System -Utility & Proj Acctg 292,687 - 292,687 Continuing Fire Station 81 Mobile Home 50,000 - 50,000 Continuing Police Training Facility 70,000 - 70,000 Total General Projects (2015) 7,490,116 2,771,000 - 10,261,116 General Projects New 2016 2016 New Fire Station 84 Remodel - - 450,000 450,000 2016 New City Hall Remodelling - 1,500,000 1,500,000 Total General Projects (New 2016) - - 1,950,000 1,950,000 Total General Projects 7,490,116 2,771,000 1,950,000 12,211,116 Continuing Continuing Continuing Continuing New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) Continuing New (in 2016) intinuing antinuing Continuing Continuing Continuing Continuing Park & Facilities 2015 Continued Three Rivers Park Animal Shelter Facility 30 Acre Park NW Quad Railroad Underpass Trail Total Park & Facilities (2015) Park & Facilities New 2016 Highland Park Lighting Specialty Kitchen Flooring Replacement Peanuts Park Restoration Soccer Facility Community Center Schlagle Park Improvements Chiawana Park Shelter Total Park & Facilities (2016) Total Park & Facilities E & 1 Develop (2015 Continued) Broadmoor Development E & I Develop (2016 New) Broadmoor Planned Action SEPA Total E & I Development Construction (2016) Total E & I Development Construction Street Construction (2015 Continued) Roads Road 68 Improvements (Phase II) Argent Road (Road 44 to 20th Ave) Oregon Ave (SR397) - Phase 1 Oregon Ave (SR397) - Phase 2 Oregon Ave (SR397) - Entrance (Ph 2 Intersection) Dual RT SB Road 68 455,000 455,000 203,000 203,000 950,000 950,000 35,000 - 35,000 1, 643,000 1,643,000 241,000 241,000 70,OD0 70,000 250,000 250,000 1,200,000 1,200,000 150,000 150,000 40,000 40,000 55,000 55,000 - - 2,006,000 2,006,000 1,643,000 - 2,006,000 3,649,000 165,000 155,000 320,000 165,000 155,000 - 320,000 250,000 250,000 - - 250,000 250,000 165,000 155,000 250,000 570,000 1,960,008 - 1,960,008 831,212 332,000 1,163,212 828,400 5,633,000 _ 6,461,400 310,560 - 310,560 192,617 - - 192,617 663,275 486,000 - 1,149,275 Page 140 of 321 City of Pasco, Washington 101 '?n1a R ,ri„P, Continuing 20th Ave Safety Improvements 815,000 1,223,000 1,524,000 25,977,709 2,038,000 Continuing Interchange Feasibility Study - 500,000 500,000 Continuing Sylvester Neigborhood - Park St (5th Ave) 100,000 1,000 4,500,000 101,000 Continuing Butterfield WTP- Sludge Drying Bed 5,701,072 8,175,000 - 13,876,072 Oregon Avenue Water Line (Phase 1) Signals 1,000,000 1,100,000 Continuing East Side Booster Station Upgrade (BS 2.1) Continuing Road 68 & Court St Signai - Continuing - - Continuing Road 68 - Triple Right 105,000 420,000 - 525,000 Continuing Traffic Signal Controller Upgrade 541,711 2,182,000 - 2,723,711 Continuing Bus Pre -Exemption @ CBC/Argent - - 1,479,077 - Distribution - Extensions 646,711 2,602,000 Continuing 3,248,711 25,000 Ramus & Under/over Passes 95,000 Continuing 2015 Annual Water Line Upsize Match 100,000 Continuing Lewis St One Way Couplets 428,600 50,000 - 478,600 Continuing Lewis St Overpass 6,017,726 250,000 - 6,267,726 Continuing Wrigley Drive Extension 10,000 250,000 260,000 Continuing Chapel Hill Extension - Street 60,000 - - 60,000 Continuing 2015 Alley Hard Surfacing (Chip Sealing) 135,600 127,000 Comprehensive Water System Plan 262,600 - 80,000 6,651,926 677,000 - 7,328,926 Total Street Construction (2015) 12,999,709 11,454,000 - 24,453,709 Street Construction (New 2016) 7,676,911 6,936,000 - 14,612,911 New (in 2016) Pavement Preservation Program - - 750,000 750,000 Continuing Utah Avenue Extension to .lames Street Butterfield - Fluoride Room Tank Truck Access - 64,000 64,000 New (in 2016) Sandifur Parkway Widening - 200,000 200,000 New (in 2016) James Street Improvements - - 40,000 40,000 New (in 2016) Transportation System Planning - New (in 2016) 160,000 160,000 New (in 2016) Pavement Rating - Butterfield WTP- Sedimentation Basin Roof Structures 90,000 90,000 New (in 2016) Powerline Road (Road 68 to Convention Drive) - - 200,000 200,000 New (in 2016) Road 76 Overpass (Argent Road to Burden Boulevard) - - 20,000 20,000 Street Construction (New 2016) - - 1,524,000 1,524,000 Page 141 of 321 City of Pasco, Washington 102 2016 Budget Total Streets Construction 12,999,709 11,454,000 1,524,000 25,977,709 Water Construction (2015 Continued) Continuing Columbia Water Supply Project 4,819,550 4,500,000 - 9,319,550 Continuing Butterfield WTP- Sludge Drying Bed 100,000 104,000 204,000 Continuing Oregon Avenue Water Line (Phase 1) 100,000 1,000,000 1,100,000 Continuing East Side Booster Station Upgrade (BS 2.1) 510,000 669,000 1,179,000 Continuing Butterfield WTP - Travelling Screens - - - Continuing Butterfield WTP 24 In. Valve Replace 14,284 243,000 257,284 Continuing Butterfield WTP - South Basin Drain By -Pass 70,000 - 70,000 Continuing Butterfield WTP -Intake Screens 1,479,077 - 1,479,077 Distribution - Extensions Continuing Warnett Pipeline 25,000 70,000 95,000 Continuing 2015 Annual Water Line Upsize Match 100,000 100,000 200,000 Continuing Water Line Ext - Chapel Hill Blvd. - - - Continuing Water Line Extension - PWRF 60,000 - 60,000 Plants. Meters. & Pumo Stations Continuing Water Master Plan/Comprehensive Water System Plan 100,000 100,000 200,000 Continuing 3" Poly Water Main Loop 200,000 - 200,000 Continuing Comprehensive Water System Plan 80,000 - 80,000 Distribution - Replacement Continuing 2015 Water Line Replacement 19,000 150,000 169,000 Total Water Construction (2015) 7,676,911 6,936,000 - 14,612,911 Water Construction New 2016 New (in 2016) Butterfield - Fluoride Room Tank Truck Access - - 65,000 65,000 New (in 2046) West Side Water Treatment Plant Filters - 100,000 100,000 New (in 2016) 2015 Water Line (Asbestos Cement) Replacement (Vah 150,000 150,000 New (in 2046) Butterfield WTP- Chlorine Safety Improvements 75,000 75,000 New (in 2016) WPWTP Backwash Ponds 100,000 100,000 New (in 2016) Butterfield WTP- Sedimentation Basin Roof Structures 30,000 30,000 Total Water Construction (New 20161 - - 520,000 520,000 Total Water Construction 7,676,911 6,936,000 520,000 15,132,911 Irrination Construction (2015 Continued) Continuing Well House - Linda Loviisa 59,900 - - 59,900 Page 141 of 321 City of Pasco, Washington 102 2016 Budget Continuing Freshwater Mussels Study 25,000 - 25,000 Continuing Well House Additions Road 52 10,000 Continuing 10,000 Continuing Irrigation Line Ext - Chapel Hill 10,000 - 10,000 Lift Station - Pearl Street Total Irrigation Construction (2015) 104,900 - 104,900 New (in 2016) Irrigation Construction (New 2016) New (in 2016) Maitland Lift Station- Purchase/ Install 4th Pump New (in 2016) New (in 2016) Weil Replacement - Village At Pasco Heights - 200,000 200,000 New (in 2016) Irrigation O & M Building 100,000 100,000 New (in 2016) Road 108 VFD Upgrade 65,000 65,000 New (in 2016) Activate Dry Systems 750,000 750,000 New (in 2016) Irrigation Line Extensions - - New (in 2016) Irrigation Booster Pump Station 60,000 60,000 Irrigation Construction (New 2016) - - 1,175,000 1,1.75,000 Total Irrig Construction 104,900 - 1,175,000 1,279,900 Sewer Construction 2015 Continued Plant and Litt Stations Continuing 2013 WWTP Imp - Screw Press 500,000 50,000 - 550,000 Continuing WWTP - Primary Clarifier No. 3 2,621,763 2,430,000 - 5,051,763 Collections - Extensions Continuing 30" Main (NW Area) 322,000 - - 322,000 Continuing 2015 Annual Sewer Line Extension - 100,000 - 100,000 Continuing Chapel Hill Blvd. Extension - Sewer - - - Collections - RBolacements Continuing 2014 Annual Sewer Line Re -lining Program 182,992 - 182,992 Continuing 2015 Annual Sewer Line Re -lining Program 310,000 300,000 610,000 Continuing West Pasco Trunk Sewer Repair 1,314,557 - - 1,314,557 Continuing 2015 Annual Sewer Line Re -lining Program 100,000 - 100,000 125,000 - Plant and Lift Stations ontinuing Plant Root Railing Continuing Maitland Lift Station- Purchase/ Install 4th Pump Continuing Turbo Compressor Inlet Suction Retrofit Continuing Total Sewer Construction (2015) Continuing Sewer Construction (New 2016) New (in 2016) Capitol Lift Station New (in 2016) Lift Station - Pearl Street New (in 2016) Kahlotus Lift Station Force Main Pipe New (in 2016) Retrofit Secondary Digester #1 New (in 2016) Replace Grit Clarifiers New (in 2016) Maitland Lift Station- Purchase/ Install 4th Pump New (in 2016) Waste Activated Thickening Newlin 2016) 9th & Washington Lift Station New (in 2016) Road 36 Lift Station Upgrades Total Sewer Construction (2016) Total Sewer Construction 125,000 - PWRF Construction (2015 Continued) Continuing PWRF Plant - Phase 2 - Sed Basin Continuing PWRF Phase 3 BOD - Aeration Pond Continuing PWRF Master Plan Continuing Phase 3 - BOD- Screw Press Continuing Phase 5 - EQ Basin Rebuild (5MG) Continuing Phase 6 - ValvelMeteriSCADA 2014 Replace 78,000 Total PWRF Construction (2015) 125,000 - PWRF Construction (New 2016) New (in 2016) Foster Wells Lift Station -Air Conditioning Unit New (in 2016) Dietrich Lift Station (aka Kahlotus/PWRF) 'ew (in 2016) PWRF Storage Pond System Piping aw (in 2016) Process Water Reuse Facility Pump Station New (in 2016) Farm Operations Optimization 975,000 Total PWRF Construction (2016) 125,000 - 125,000 75,000 - 75,000 25,000 100,000 125,000 5,576,312 2,980,000 8,556,312 320,000 320,000 170,000 170,000 250,000 250,000 60,000 60,000 108,000 108,000 75,000 75,000 975,000 975,000 78,000 78,000 30,000 30,000 - - 2,066,000 2,066,000 5,576,312 2,980,000 2,066,000 10,622,312 1,647,950 437,000 2,084,950 40,000 80,000 120,000 255,000 100,000 355,000 8,000 134,000 142,000 100,817 - 100,817 2,051,767 751,000 2,802,767 - 20,000 20,000 - 5,650,000 5,650,000 - 64,000 64,000 - 100,000 100,000 120,000 120,000 - 5,954,000 5,954,000 Total PWRF Construction 2,051,767 751,000 5,954,000 8,756,767 Page 142 of 321 City of Pasco, Washington 103 2n16 Budoet Stormwater Construction (New 2016 Storm Water Master Plan 150,000 150,000 Annual Stormwater Improvement - _ _ - Stormwater Relining Program _ _ _ - Total Stormwater Construction (2016) - 150,000 150,000 Total Stormwater Construction - 150,000 - 150,000 TOTAL CIP BUDGET 37,707,715 25,197,000 15,445,000 76,349,715 TOTAL 2015 CONTINUING 37,707,715 25,197,000 - 62,754,715 TOTAL_ 2016 NEW - 15,445,000 15,595,000 Section Two: This Ordinance shall be in full force and effect on January 1, 2016 PASSED by the City Council of the City of Pasco this 15th day of December, 2015. ATTEST: DEBRA L. CLARK, CITY CLERK APPROVED AS TO FORM Page 143 of 321 City of Pasco, Washington 104 7niA RiiAnn+ Budgeted 2016 Capital Projects Page 144 of 321 City of Pasco 1()5 7nia Q. -f 0 This page left blank ON of Pasco 106 Page 145 of 321 7016 Riicinat 2016 BUDGETED PROJECTS Project Name 2016 CIP 2016 BUDGETED Percentage PROJECTS PROJECTS Change GENERAL PROJECTS City Hall Renovations Police Station Water Tender (Fire Department) Fire Station 84 Remodel PARKS AND RECREATION Highland Park Lighting Specialty Kitchen Flooring Replacement Volunteer Park Playground Structure Soccer Facility Community Center Schlagle Park Improvements Peanuts Park Restoration Chiawana Park Shelter ECONOMIC AND INDUSTRIAL DEVELOPMENT Broadmoor Area Master Planning Broadmoor Planned Action SEPA STREETS Dual Right SB Road 68 Oregon Avenue (US -397) - Phase I 20th Avenue Corridor Safety Improvements Citywide Traffic Signal Controller Improvements Argent Road Widening (Road 36 to 20th Avenue) Lewis Street Overpass Sylvester Neighborhood Improvements Lewis Street Downtown Circulation Plan Interchange Feasibility Study Wrigley Drive Extension Chapel Hill Blvd. COMBINED Extension 1 Road 68 - Triple Right Sandifur Parkway Widening (Road 68 to Convention Drive) Utah Avenue Extension to James Street James Street Improvements East B Circle LID Transportation System Planning Pavement Rating Powerline Road (Road 68 to Convention Drive) Road 76 Overpass (Argent Road to Burden Boulevard) Traffic Signals Overlay Projects Pavement Preservation Program Alley Hard Surface Maintenance & Preservation (Chip Seal) Adjustment for Chapel !fill Blvd. COMBINED Extension 3 City of Pasco, Washington 90,000 1,500, 000 1567% 2,771,000 2,771,000 0.00% 70,000 0.00 -100.00% 450,000 450,000 0.00% 3,381,000 4,721,000 39.63% 241,000 241,000 0.00% 70,000 70,000 0.00% 130,000 0.00 -900.00% 1,050,000 1,200,000 14.29% 850,000 150,000 -82.35% 40,000 40,000 0.00%n 510,000 250,000 -50.98% 55,000 55,000 0.00% 2,946,000 2,006,000 -31.91% 155,000 155,000 0.00% 250,000 250,000 0.00% 405,000 405,000 0.00% 486,000 486,000 0.00% 5,633,000 5,633,000 0.00% 1,223,000 1,223,000 0.00% 2,182,000 2,182,000 0.00% 4,046,000 332,000 -91.79% 1,130,000 250,000 -77.88% 1,000 1,000 0.00% 50,000 50,000 0.00% 500,000 500,000 0.00% 250,000 250,000 0.00% 210,000 - -25.00% 420,000 420,000 0.00% 300,000 200,000 -33.33% 64,000 64,000 0.00% 40,000 40,000 0.00% 200,000 0.00 0.00% 200,000 160,000 -20.00% 100,000 90,000 -10.00% 200,000 200,000 0.00% 20,000 20,000 0.00% 1,000,000 750,000 -25.00% 127,000 127,000 0.00% (120,000) 0.00 -100.00% 1,007,000 877,000 -12.91% 107 Pae 146 of 321 2016 Budget IRRIGATION Well Replacement - Village At Pasco Heights 18,262,000 12,978,000 -28.93% WATER 100,000 100,000 0.00% Butterfield WTP- Sludge Drying Bed 104,000 104,000 0.00% East Side Booster Pump Station 1,022,000 669,000 -34.54% Butterfield WTP 24 In. Valve Replacement 366,000 243,000 -33.61% Columbia Water Supply Project 4,000,000 4,500,000 12.50% Comprehensive Water System Plan 100,000 100,000 0.00% Oregon Avenue Water Line (Phase 1) 1,000,000 1,000,000 0.00% 2015 Water Line (Asbestos Cement) Replacement (Various) 203,000 150,000 -26.11% Wernett Pipeline 70,000 70,000 0.00% Annual Water Line Upsize Match 100,000 100,000 0.00% Butterfield - Fluoride Room Tank Truck Access 65,000 65,000 0.00% Butterfield WTP- Chlorine Safety Improvements 500,000 75,000 -85.00% Water Line Replacement Capitol Lift Station 640,000 320,000 Water Line Replace- Maple:Park - 150,000 250,000 Water Line Replacement (Various Locations)' - 150,000 60,000 WPWTP Backwash Ponds 300,000 100,000 -66.67% Butterfield WTP- Sedimentation Basin Roof Structures 30,000 30,000 0.00% Water Line Extensions (Various Locations Maitland Lift Station- Purchase/ Install 4th Pump 75,000 75,000 West Pasco Water Treatment Plant Filters (Design) - 100,000 Adjustment for Chapel Hill Blvd. COMBINED Extension - - 975,000 875.00% 7,860,000 7,456,000 -5.14% IRRIGATION Well Replacement - Village At Pasco Heights 200,000 200,000 0.00% Irrigation O & M Building 100,000 100,000 0.00% Road 108 VFD Upgrade 65,000 65,000 0.00% Activate Dry Systems 750,000 750,000 0.00% Irrigation Line Extensions 500,000 -100.00% Irrigation Booster Pump Station 60,000 60,000 0.00% 1,675,000 1,175,000 -29.85% SEWER Annual Sewer Line Extensions 100,000 100,000 0.00% Annual Sewer Line Re -lining Program 352,000 300,000 -1.4.77% WWTP Primary Clarifier No. 3 2,430,000 2,430,000 0.00% 30" Main (NW Area) 4,900,000 -100.00% WWTP Improvements - Screw Press Building 500,000 50,000 -90.00% Capitol Lift Station 640,000 320,000 -50.00% Kahlotus Lift Station Force Main Pipe 200,000 250,000 25.00% Retrofit Secondary Digester ##1 60,000 60,000 0.00% Replace Grit Clarifiers 108,000 108,000 0.00% Turbo Compressor Inlet Suction Retrofit 100,000 100,000 0.00% Maitland Lift Station- Purchase/ Install 4th Pump 75,000 75,000 0.00% 12" Sewer Line from Commercial to Dietrich 250,000 -100.00% Waste Activated Thickening 100,000 975,000 875.00% Trunk Sewer Relining 500,000 -100.00% Purchase and Install 2 Turbo Compressors 35,000 -100.00% Pearl Street Lift Station Replacement 170,000 170,000 0.00% 9th & Washington Lift Station 78,000 78,000 0.00% Road 36 Lift Station Upgrades 30,000 30,000 O.00% 10,628,000 5,046,000 -52.52% STORM Storm Water Master Plan 150,000 150,000 0.00% City of Pasco, Washington 108 g4g%lddepf 321 Adjustment for Chapel Hill Blvd. COMBINED Extension"3 PWRF Process Water Reuse Facility Phase 3 BOD - Aeration Pond PWRF Master Plan PWRF Phase 3 BOD - Screw Press Building PWRF Equalization Pond Rebuild Foster Wells Lift Station -Air Conditioning Unit Add new Circle, South of Circle #5 Dietrich Lift Station (aka Kahlotu5/PWRF) Titus Aerator for Equalization Pond Installation of Sedimentation Basin Clarifier #2 PWRF Storage Pond System Piping Process Water Reuse Facility Pump Station Farm Operations Optimization MAJOR OPERATING PROJECTS Street Road 68 to Road 100 Trail Overlay Road 68 to Road 44 Trail Overlay Chiawana Trail Overlay 120,000 -100.00% 270,000 150,000 -44.44% 302,000 437,000 44.70% 80,000 80,000 0.00% 235,000 100,000 -57.45% 440,000 134,000 -69.55% 20,000 20,000 0.00% 140,000 0.00 -100.00% 5,650,000 5,650,000 0.00% 70,000 0.00 -100.00% 750,000 0.00 -100.00% 160,000 64,000 -60.00% 100,000 100,000 0.00% 337,000 120,000 -64.39% 8,284,000 6,705,000 -19.06% TOTAL CAPITAL PROJECTS 53,711,000 40,642,000 Street Overlay Annual Americans with Disabilities Act Upgrade/Retrofit Program Water Water Fire Hydrant & Flushing Program Annual Waterline & Fire Hydrant Upgrades Maintenance Meter Replacement & Cross Connect Water Treatment Plants - 0 & M Manuals Irrigation Irrigation Well Rehab Program Irrigation Isolation Valves Sewer Sewer Line Repairs Class A Biosolids STORM Annual Stormwater Improvement Stormwater Relining Program 300,000 300,000 0.00% 305,000 305,000 0.00% 101,000 101,000 0.00% 706,000 706,000 0.00% 150,000 - -100.00% 150,000 - -100.00% 50,000 - -100.00% 125,000 64,000 -48.80% 175,000 175,000 0.00% 75,000 - -100.00% 425,000 239,000 -43.76% 50,000 25,000 -50.00% 120,000 - -100.00% 170,000 25,000 -85.29% 100,000 100,000 0.00% 75,000 25,000 -66.67% 175,000 125,000 -28.57% 125,000 90,000 -28.00% 125,000 90,000 -28.00% 250,000 180,000 1,876,000 1,275,000 TOTAL CIP PROJECTS 55,587,000 41,917,000 -32.04% -24.59% Pe 148 of 321 City of Pasco, Washington 109 201e5udget This page left blank City of Pasco, Washington 110 jIb4gEBj4j�-,pf 321 APPENDIX Page 150 of 321 City of Pasco 111 2016 ®udaPt This page left blank City of Pasco 112 Page 151 of 321 2016 Budget CITY OF PASCO COMPARATIVE SUMMARY OF AD VALOREM TAXES ($ per $1000 ASSESSED VALUE) 2013 Tax Year Assessed in 2012 2014 Tax Year Assessed in 2013 ASSESSED LEVY PER ASSESSED LEVY PER VALUE $1000 A.V. AMOUNT VALUE $1000 A. V. AMOUNT GENERAL LEVY CURRENT EXPENSE $ 3,300,169,365 $1.9174 $ 6,327,851 $ 3,541,628,830 $1.8332 $ 6,492,514 SPECIAL LEVY Voted: 2015 Tax Year Assessed in 2014 Est 2016 Tax Year Assessed in 2015 1999 L.T.G.O. FIRE $ 2,847,741,025 0.0282 80,355 $ 2,892,376,982 1999 L.T.G.O. LIBRARY $ 2,847,741,025 0,0223 63,445 $ 2,892,376,982 2002 U.T.G.O. REFUNDING $ 2,551,722,674 0.1484 378,600 Sub -Total 0.1989 522,400 GRAND TOTAL $2.1163 $ 6,850,251 0.0268 77,394 0.0211 61.106 0.0479 138,500 $1.8811 $ 6,631,014 Page 152 of 321 City of Paseo 113 2016 Budget 2015 Tax Year Assessed in 2014 Est 2016 Tax Year Assessed in 2015 ASSESSED LEVY PER ASSESSED LEVY PER VALUE $1000 A.V. AMOUNT VALUE $1000A.V. AMOUNT GENERAL LEVY CURRENT EXPENSE $ 3,679,413,343 $1.9456 $ 7,158,785 $ 3,935,119,950 $1.9385 $ 7,628,164 SPECIAL LEVY Voted: 1999 L.T.G.O. FIRE $ 3,040,963,456 $0.0235 71,387 $ 3,168,530,032 $0.0216 68,341 1999 L.T.G.O. LIBRARY $ 3,040,963,456 $0.0185 56,363 $ 3,168.530.032 $0.0170 53,959 Sub -Total $0.0420 127,750 $0.0386 122.300 GRAND TOTAL $1.9876 $ 7,286,535 $1.9771 $ 7,750,464 Page 152 of 321 City of Paseo 113 2016 Budget FISCAL YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016' Estimated CITY OF PASCO RATIO of GENERAL BONDED DEBT (General Obligation Only) to ASSESSED VALUE and NET BONDED DEBT PER CAPITA as of DECEMBER 31 RATIO OF BONDED DEBT APRIL ASSESSED BONDED TO ASSESSED 'BONDED DEBT POPULATION VALUATION DEBT VALUE PER CAPITA 44,190 $ 1,779,825,339 14,500,000 0.8% 328.13 47,610 1,987,W.071 13,650,000 0.7% 286.70 50,210 2,314,634,072 12,765,000 0.6% 254.23 52,290 2,483,166,932 11,850,000 0.5% 226.62 54,490 2,861,340,058 10,915,000 0.4% 200.31 56,300 2,934,792,310 9,945,000 0.3% 176.64 59,761 31100,250,228 7,670,000 0.3%a 166,36 62,670 3,214,780,310 4,710,000 0.1% 75.16 65,000 3,300,169,365 3,835,000 0.1% 75.16 67,770 3,541,628,830 3,315,000 0.1% 48.92 68,240 3,679,413,343 11,480,000 0.3% 154.79 68,710 3,935,119,950 10,630,000 0.3% 140.96 Page 153 of 321 City of Pasco 114 2016 Budget CITY OF PASCO ESTIMATED DEBT LIMITATION AS OF DECEMBER 31, 2016 ESTIMATED ASSESSED VALUATION for 2015 TAXES $ 3,935,119,950 GENERAL PURPOSES Councilmanic: Capacity (1.50% of Assessed value) 59,026,799 Less: G.O. Bonds Outstanding 10,330,000 State L.O.C.A_L. Program 0 Pori of Pasco 13,941 10,343,941 Available Councilmanic Capacity Excluding Capital Leases 48,682,858 Voter -Approved: 60 percent approval Total Capacity (2.50% of Assessed Value) 98,377,999 Less: Councilmanic Outstanding 10,343,941 Issued Voter -Approved 300,000 10,643,941 Available Voter -Approved Capacity UTILITY PURPOSES Voter -Approved: Capacity (2.5% of Assessed Value) 98,377,999 Available Utility Capacity OPEN SPACE AND PARK FACILITIES Voter -Approved: Capacity (2,5% of Assessed Value) 98,377,999 Available Open Space and Park Facilities Capacity TOTAL AVAILABLE DEBT CAPACITY $ 87,734,058 98, 377, 999 98,377,999 $ 284,490,056 Page 154 of 321 City of Pasco 115 2016 Budget CITY OF PASCO Projected As of December 31. 2016 SUMMARY OF DEBT (EXCEPT L.I.D.'s) ORIGINAL ISSUE PURPOSE AMOUNT GENERAL OBLIGATION DEBT COUNCILMANIC BONDS: 2011 L.T.G.O. REFUNDING 2001 LTGO REFUNDING 2015 L.T.G.O. POLICE STATION VOTER -APPROVED BONDS: 1999 U.T.G.0. LIBRARY LIBRARYIFIRE ST OTHER GENERAL OBLIGATION DEBT: STATE L.O.C.A.L. PROGRAM ANIMAL CONTROL PORT OF PASCO AIRPORT BLDG MOTOROLA CAP LEASE POLICE EQUIPMENT UTILITY DEBT WATERISEWER UTILITY REVENUE BONDS 2002 REVENUE BONDS WATERISEWER/IRRIGATION 2005 REVENUE BONDS WATER 2007 REVENUE BONDS ULID 141 & 142 2009 REVENUE BONDS ULID 143 & Water Plant 2010 A REVENUE BONDS REFUNDING 98 B PLUS 2010 T REVENUE SON DS REFUNDING 98 A 2013 A REVENUE BONDS SEWER 2013 T REVENUE BONDS PWRF 2015 REVENUE BONDS` WATERISEWERIIRRIGATION OTHER WATERISEWER UTILITY DEBT: PN! TRUST FUND LOAN RD 100 WATER RES P1W TRUST FUND LOAN SEWER PLANT PIW TRUST FUND LOAN SEWER PLANT STATE REV FUND LOAN SEWER PLANT PHASE 1&2 STATE REV FUND LOAN DWSRF INTEREST MATURITY DATED RATE(S) DATE 4,110,000 9115/2011 2.004.00% 12/1/2020 8,150,000 211/2015 2.00-5.00% 2/112030 1,700,000 10/711999 4.40 - 5.60% 12/112019 275,500 1111/2001 5.72% 6/1/2016 120,000 8/1/2006 4.00% 7/1/2016 329366 112!2020 4.00% 11112021 5,945,000 1011/2002 2.00 - 4.70% 121112022 4,400,000 12/5/2005 3.50-4.25% 12/512025 845,000 6118/2007 4.25-4.75% 9/112022 10,045,000 511/2009 3,00 - 4.75% 5/1/2029 9,070,000 613/2010 3.00-5.00% 12/112019 1,240,000 6/3/2010 4.62% 12/l/2029 2,717,300 121912013 2.00-4.13% 12/1/2028 7,260,000 121912013 1.23-4.82% 12/112028 18,600,000 121112015 4% 121112035 2,687,300 6/27/1995 1,00% 711/2015 812,700 6/2711995 1.00% 711/2015 1,890,000 51112000 1.00% 711/2020 25,010,505 1131/2000 3,50% 713112019 4,494,884 1/2/2020 4,00% 1/1/2040 Page 155 of 321 City of Pasco 116 2016 Budget CITY OF PASCO Projected As of December 31, 2016 SUMMARY OF DEBT (EXCEPT L.I.D.'s) 1211 611,1211 400,000 PRINCIPAL 22,300 122,300 300,000 PRINCIPAL PRINCIPAL INTEREST OUTSTANDING 2016 DEBT SERVICE REQUIREMENTS OUTSTANDING DUE DATE DUE DATES 12131/2019 PRINCIPAL INTEREST TOTAL 1 213 112 02 0 1211 611,1211 2,285,000 445,000 90,950 535,950 1,840,000 211 211,8/1 8,795,000 305,000 330,950 635,950 8,490,000 TOTAL COUNCILMANIC BONDS 11,080,000 750,000 421,900 1,171,900 10,330,000 1211 611,1211 400,000 100,000 22,300 122,300 300,000 TOTAL VOTER APPROVED BONDS 400,000 100,000 22,300 122,300 300,000 TOTAL G.O. BOND DEBT 11,480,000 850,000 444,200 1,294,200 10,630,000 6/1,1211 611,1211 29,678 29,678 1,391 31,069 0 MONTHLY MONTHLY 22,333 8,392 112 8,504 13,941 ANNUAL ANNUAL 329366 329,366 10,836 340,202 0 TOTAL OTHER GENERAL DEBT 381,377 367,436 12,339 379,775 13,941 TOTAL GENERAL OBLIGATION DEBT $ 11,861,377 $ 1,217,436 $ 456,539 $ 1,673,975 $ 10,643,941 12/1 6/1,12/1 755,000 0 51,950 51,950 755,000 911 311,911 2,605,000 215,000 105,993 320,993 2,390,000 911 311,911 315,000 0 14,963 14,963 315,000 511 511,1111 7,630,000 450,000 317,675 767,675 7,180,000 611 611,1211 5,040,000 275,000 217,300 492,300 4,765,000 611 611,1211 520,000 165,000 20,195 185,195 355,000 611 611,1211 2,320,000 100,000 88,100 188,100 2,220,000 611 611,12/1 6,800,000 435,000 259,436 694,436 6,365,000 611 611,12/1 18,600,000 116,182 862,470 978,652 18,483,818 TOTAL REVENUE BONDED DEBT 44,585,000 1,756,182 1,935,082 3,694,264 42,628,818 711 711 0 0 0 0 0 711 711 0 0 0 0 0 711 711 555,703 111,140 5,557 116,697 444,563 1/31,7131 1131,7131 6,388,921 1,509,436 210,519 1,719,955 4,879,485 1211 1211 4,494,884 118,287 33,712 151,999 4,376,597 TOTAL OTHER UTILITY DEBT 11,439,508 1,738,863 249,788 1,986,651 9,700,645 TOTAL UTILITY DEBT 56,024,508 3,495,045 2,187,870 5,682,915 52,529,463 City of Pasco 117 Page 156 of 321 2016 Budget This page left blank Page 157 of 321 City of Pasco 118 2016 Budget Effective 01.01.15 2.00% Effective 07,01.15 2.00% Sergeant 0-12 15% Above Top Step Officer Wage Sergeant 13+ 20% Above Top Step Officer Wage Additional % added to base is for reference only. Page 158 of 321 City of Pasco, Washington 119 2016 Budget PPOA Uninformed HOURLY WAGE RATES - (Effective 07.01.2015) CLASSIFICATION I BASE 1 2% 1 3% 1 4% 1 5% 1 6% 1 7% 1 8% 9% 1 10% 1 11% 1 12% Officer 0.6 31.35 31.98 32.29 32.60 32.92 33.23 33.54 33.86 34.17 34.49 34.80 35.11 Officer 7-12 33.07 33.73 34.06 34.39 34.72 35.05 35.38 35.72 36.05 36.38 36.71 37.04 Officer 13-24 34.67 35.36 35.71 36.06 36.40 36.75 37.10 37.44 37.79 38.14 38.48 38.83 Officer 25-36 36.43 37.16 37.52 37.89 38.25 38.62 38.98 39.34 39.71 40.07 40.44 40.80 Officer 36+ 38.10 38.86 39.24 39.62 40.01 40.39 40.77 41.15 41.53 41.91 42.29 42.67 Se sant 0-12 43.81 44.69 45.12 45.56 46.00 46.44 46.88 47.31 47.75 48.19 48.63 49.07 Se . eant 13+ 45.72 46.63 47.09 47.55 48.01 48.46 48.92 49.38 49.83 50.29 50.75 54.21 Effective 01.01.15 2.00% Effective 07,01.15 2.00% Sergeant 0-12 15% Above Top Step Officer Wage Sergeant 13+ 20% Above Top Step Officer Wage Additional % added to base is for reference only. Page 158 of 321 City of Pasco, Washington 119 2016 Budget PASCO POLICE OFFICERS' ASSOCIATION (Non -Uniformed) 2015 - WAGE SCALE All rates are hourly rates. All steps are dependent upon satisfactory performance evaluations. City Manager may grant double step increase for meritorious performance upon recommendation of Chief of Police Lead Police Services Specialist rate is to be at 10% over PSS EL range. 2015: 6% Increase over 2011 wages. (Effective 01.01.2015) 2016: 90% CPI -17, 13/C western cities (June/June), 1%W%u (min/max) Page J� City of Pasco, Washington 120 196 Budget STEP STEP STEP STEP STEP STEP STEP STEP STEP STEP STEP MAX POSITION GRADE EL 1 2 3 4 5 6 7 8 9 10 Merit PSS 6 17.00 17.34 17.69 18.04 18.40 18.77 19.14 19.53 19.92 20.32 20.72 22.38 Lead 7 18.70 19.07 19.46 19.84 20.24 20.65 21.06 21.48 21.91 22.35 22,80 24.62 Crime Specialist 8 21.39 21.82 22.25 22.70 23.15 23.62 24.09 24,57 25.06 25.56 26.07 28.16 All rates are hourly rates. All steps are dependent upon satisfactory performance evaluations. City Manager may grant double step increase for meritorious performance upon recommendation of Chief of Police Lead Police Services Specialist rate is to be at 10% over PSS EL range. 2015: 6% Increase over 2011 wages. (Effective 01.01.2015) 2016: 90% CPI -17, 13/C western cities (June/June), 1%W%u (min/max) Page J� City of Pasco, Washington 120 196 Budget [AFF Effective 01/04/2015 Longevity FF Rate FF/PM Rate 2% over 3% over 4% over 5% over base base base base FF 0-12 80% 24.22 26.64 FF 13-24 85% 25.74 28.31 FF 25-36 90% 27.25 29.98 FF 37-48 95% 28.77 31.65 FF 49+ 100% 30.28 33.31 30.89 31.19 31.49 31.79 LT 110% 33.31 33.98 34.31 34.64 34.98 Capt. 115% 34.82 35.52 35.86 36.21 36.56 BC 125% 37.85 38.61 38.99 39.36 39.74 Capt./MO +5% 45.70 46.61 47.07 47.53 47.99 BUM +5% 49.68 50.67 51.17 51.67 52.16 Pa City of Pasco, Washington 121 Z016 160 of ADMINISTRATIVE/PROFESSIONAL IMAGE SCALE (Non-Represented/Non-Monugement) - 2015 Effective 01.01.2015 -1% City of Pasco, Washington 122 Page 'A16(f,,1 Step Step Step Step Step Step Stop Step Step Step Step Ml Position Grade EL 1 2 3 4 5 6 7 8 9 10 Mi Department Assistant 1 5 11,10 11.32 11.55 11.78 12.01 12.26 12.50 12.75 1301 13.27 13.53 14.b Administrative Assistant 1 26 16,62 17.16 17.50 17.85 18.21 18.57 1895 19.33 1971, 20.11 20-51 22.15 Cemetery Customer Service Rep. Legal Secretary 1 27 17.16 17.54 17.85 18.21 18.57 18.95 19.33 19.71 2011, 20.51 20.92 22.59 Probation Services Clerk Department Assistant 2 28 17.50 17.85 18.21 18.57 18.95 19.33 1931 20.11 2051 20.92 21.34 23.04 Deputy Court Clerk Accounting Clerk 33 19.33 19.71 20.11 2051. 2092. 21.34 21.76 22.20 22.64 23.10 23.56 25.44 Engineering Technician 1 IS Technician; GIS Lead Court Clerk Legal Secretary 2 Administrative Assistant 2 35 20.11 20.51 20.92 21.34 21.76 22.20 22.64 23.10 23.56 24.03 24.51 26.47 Court Services Specialist 39 21.76 22.20 22.64 23.10 23.56 24.03 24.51 25.00 25.50 2601 26.53 28.65 Legal SecretarylParalegal Planner 1 Recreation Specialist RN Engineering Technician 2 40 2220 22.64 23.10 23.56 24.03 24.51 25.04 25.50 2601 2653 27.06 29.22 Court Probation Officer 41 22.64 23.10 23.56 24.03 24.51 25.00 25.54 26.01 26.53 27. D6 27.60 29.81 Database Specialist Lead Recreation Specialist Payroll Specialist PC Specialist Block Grant Administrator 43 23,56 24.03 24.51 25.00 25.50 26.01 26.53 27.06 27.60 28.15 28.72 31.01 Executive Administrative Assistant SatelylTraining Specialist Building Inspector 45 24.51 25.00 25.50 26.01 26.53 27.06 27.60 28.15 28.72 29.29 29.86 32.27 Construction Inspector Staff Accountant Associate Planner 49 26.53 27.06 27.60 28.15 28.72 29.29 29.88 30.47 31.06 31.71 32.34 34.93 City Clerk Database Administrator GIS Administrator Plans Examiner Associate Engineer 51 27.60 28.15 28.72 29.29 29.88 30.47 31,08 31.71 32.34 32.99 33.65 3F Network Administrator 53 28.72 29.29 29.68 30,47 31.06 31.71 32.34 32.99 33.65 34.32 35.41 37.81 Communication Specialist 54 29.29 29.88 30.47 31.08 31.71 32.34 32,99 33.65 34.32 35.01 35,71 36.56 Instrumentation Technician City Planner 56 30.47 31.08 31.71 32,34 32.99 33.65 34.32 35,01 35.71 36.42 37.15 40. 12 Civil Engineer Lead Accountant Senior HR Analyst Construction Manager 61 33.65 34.32 35.01 35,71 3642 37.15 37.89 36.65 39.42 40.21 41.01 44.30 Senior Civil Engineer City of Pasco, Washington 122 Page 'A16(f,,1 Management Salary Scale - 2015 (Monthly Maximum) Lffeelive 01.01.2015 - 1 Position Maximum Salary City Manager CONTRACT Deputy City Manager 11,734 Public Works Director Police Chief 10,610 A & CS Director Fire Chief 10,201 C & ED Director Deputy A&CS Director 9,895 City Engineer Police Captain 9,182 HR Manager 8,773 IS Manager Field Division Manager Finance Manager 8,369 Inspection Services Manager 7,753 Facilities Manager Recreation Services Manager PW Division Manager 7,039 Court Administrator 6,594 Customer Service Manager 5,817 Position by Ap pointmentlContract (1560 Annual ,Hours): Municipal Court Jude 1 1 9,124 2 � City of Pasco, Washington 123 B6iudget21 Page 163 of 321 GLOSSARY OF TERMS AD VALOREM TAXES - (Property Tax) A tax levied on the assessed value of real property. AGENCY FUND - A fund used to account for assets held by a government as an agent for individuals, private organizations, other governments and/or other funds. APPROPRIATION - A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in amount and as to the time when it may be expended. APPROPRIATION ORDINANCE OR RESOLUTION - An ordinance or resolution by means of which appropriations are given legal effect. It is the method by which the expenditure side of the annual operating budget is enacted into law by the legislative body. ASSESSED VALUATION - A valuation set upon real estate or other property by the County Assessor as a basis for levying property taxes. BASIS OF ACCOUNTING — The timing of recognition, that is, when the effects of transactions or events should be recognized for financial reporting purposes. For example, the effects of transactions or events can be recognized on an accrual basis (that is, when the transactions or events take place), or on a cash basis (that is, when cash is received or paid). Basis of accounting is an essential part of measurement focus because a particular timing of recognition is necessary to accomplish a particular measurement focus. Cash Basis - A basis of accounting under which transactions are recognized only when cash is received or disbursed. Accrual Basis - A basis of accounting under which transactions are recorded in the periods in which those transactions occur, rather than only in the periods in which cash is received or paid by the government. Modified Accrual Basis - A basis of accounting according to which (a) revenues and other financial resources are recognized when they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred,. if measurable, except for un -matured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due. Modified Cash Basis — is the cash basis of accounting adjusted for Washington State statute. RCW 35.33.151 and RCW 35A.33.150 requires cities to keep their books open in order to pay December bills by the following January 20. RCW 36.40.200 requires counties to keep their books open until January 30 in order to pay December bills and charge the prior year. City of Pasco, Washington 125 2016 Budget Page 164 of 321 BOND - A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. The difference between a note and a bond is that the latter runs for a longer period of time and requires greater legal formality. BUDGET - A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year. The term "budget" is used in two senses in practice. Sometimes it designates the financial plan presented to the appropriating body for adoption and sometimes the plan formally approved by that body. It is usually necessary to specify whether the budget under consideration is preliminary and tentative or whether the appropriating body has approved it. BUDGETARY CONTROL - The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and available revenues. BUDGET DOCUMENT - The instrument used by the budget -making authority to present a comprehensive financial program to the appropriating body. In addition to the budget document, an appropriation ordinance is necessary to formally approve the budget. CAPITAL IMPROVEMENTS PROJECT - A plan for capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from the long-term work program or otherwise. It sets forth each project or other contemplated expenditure in which the government is to have a part and specifies the full resources estimated to be available to finance the projected expenditures. CAPITAL OUTLAYS - Expenditures that result in the acquisition of or addition to fixed assets. DEBT - An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include bonds, registered warrants, notes, contracts and accounts payable. DEBT SERVICE FUND - A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Formerly called a sinking fund. DEBT LIMIT - The maximum amount of gross or net debt that is legally permitted. City of Pasco, Washington 126 2016 Budget Page 165 of 321 DEFICIT - (1) The excess of the liabilities of a fund over its assets. (2) The excess of expenditures over revenues during an accounting period; or, in the case of proprietary funds, the excess of expense over income during an accounting period. EMPLOYEE/PERSONNEL BENEFITS - For budgeting purposes, employee benefits are employer payments for social security, retirement, group health and life insurance, and worker's compensation. These expenses are budgeted at the activity level. ENTERPRISE FUND - Proprietary fund type used to report an activity for which a fee is charged to external users for goods or services. EXPENDITURES - Decreases in net current assets. Expenditures include debt service, capital outlays, and those current operating costs that require the use of current assets. EXPENSES - Decreases in net total assets. Expenses represent the total cost of operations during a period regardless of the timing of related expenditures. FISCAL POLICY - The City Government's policies with respect to revenues, spending, and debt management as these relate to government services, programs and capital investment. Fiscal policy provides an agreed upon set of principles for the planning and programming of government budgets and their funding. FISCAL YEAR - A 12 -month period to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations. The City begins its annual operations on the first day of January and ends on the last day of December.. FIXED ASSETS - Assets intended to be held or used for a long term purpose, such as land, buildings, improvements other than buildings, machinery and equipment. In common usage, the term refers only to operating facilities and equipment, not to long-term investments and other non-current assets. The City's capitalization threshold is $5,000. FUND - A fiscal and accounting entity with self -balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE - The difference between assets and liabilities reported in a governmental fund. GENERALLY ACCEPTED ACCOUNTING PRINCIPALS (GAAP) — Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompasses the conventions, rules and City of Pasco, Washington 127 2016 Budget Page 166 of 321 procedures necessary to define the accepted accounting practice at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. The primary authoritative body on the application of GAAP to state and local governments is the Governmental Accounting Standards Board. GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) — The authoritative accounting and financial standard-setting body for government entities. GENERAL FUND - Accounts for all revenues and expenditures that. are not accounted for in any other fund except those required by statute. It is a fund supported by taxes, fees and other miscellaneous revenues. GENERAL OBLIGATION BONDS - Bonds for the payment of which the full faith and credit of the issuing government are pledged. G.Q. Bonds can be voter approved (unlimited -tax general obligation bond-UTGO) where property owners are assessed property taxes for the debt repayment, or non -voted (limited -tax general obligation bonds-LTGO) that are authorized by the governing authority (City Council) and are paid with existing tax revenues or another source. INTERNAL SERVICE FUNDS — These funds account for operations that provide goods or services to other departments or funds of the City or to other governmental units on a cost - reimbursement basis. INTERGOVERNMENTAL REVENUE - Funds received from federal, state and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. LEVY - (1) (Verb) To impose taxes, special assessments or service charges for the support of government activities. (2) (Noun) The total amount of taxes, special assessments or service charges imposed by a government. LIABILITY - A debt or other legal financial obligation. LICENSES AND PERMITS - Documents issued in order to regulate various kinds of businesses and other activity within the community. A degree of inspection may accompany the issuing of a license or permit, as in the case of business licenses or building permits. In most instances, a fee is charged in conjunction with the issuance of a license or permit, generally to cover the cost of administration. LID - Local Improvement District or Special Assessments made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. LONG TERM DEBT - Debt with a maturity of more than one year after the date of issuance. City of Pasco, Washington 128 2016 Budget Page 167 of 321 LIMITED TAX. GENERAL OBLIGATION (LTGO) BONDS - See General Obligation Bonds OPERATING BUDGET - Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing of acquisition, spending, and service delivery activities of a government are controlled. The use of annual operating budgets is usually required by law. Even where not required by law, however, annual operating budgets are essential to sound financial management and should be adopted by every government. OPERATING TRANSFER - Routine and/or recurring transfers of assets between funds. ORGANIZATIONAL CHART - A graphic portrayal of relationships among positions and officials established by the City. PERSONNEL_- Refers to the number of full-time or part-time regular authorized positions which may be employed within the operation of the City. REFUNDING BONDS - Bonds issued to retire bonds already outstanding. The refunding bonds may be sold for cash and outstanding bonds redeemed in cash, or the refunding bonds may be exchanged with holders of outstanding bonds. RESERVE - (1) An account used to segregate a portion of fund balance to indicate that it is not available for expenditure; and (2) an account used to segregate a portion of fund equity as legally set aside for a specific future use. REVENUE - Income received by the City in support of a program of services to the community. It includes such items as property taxes, fees, user charges, grants, fines and forfeits, interest income and miscellaneous revenue. The term designates an increase to a fund's assets from other than expense refunds, capital contributions, and residual equity transfers. REVENUE BONDS - Bonds whose principal and interest are secured by and payable exclusively from earnings of an enterprise or proprietary fund. SALARIES AND WAGES - Monetary compensation in the form of an annual or hourly rate of pay for hours worked. SERVICES AND CHARGES - Expenditures for services other than personal services which are required by the City in the administration of its assigned functions or which are legally or morally obligating on it; such as, contracted services, utilities, printing, advertising, insurance and rental of equipment. City of Pasco, Washington 129 2016 Budget Page 168 of 321 SPECIAL REVENUE FUNDS - Funds used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes. SUPPLIES AND MATERIALS - Articles and commodities which are consumed or materially altered when used; such as, office supplies, motor fuel, building supplies and postage. TAXES - Compulsory charges levied by a government to finance services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits, such as special assessments. Neither does the term include charges for services rendered only to those paying such charges (e.g., sewer service charges). TAX RATE - The amount of tax stated in terms of a unit of the tax base. The amount of tax levied for each $1,000 of market valuation. TAX -RATE LIMIT - The maximum rate at which a government may levy a tax. The limit may apply to taxes raised for a particular purpose or to taxes imposed for all purposes and may apply to a single government or to a class of governments operating in a particular area. Overall tax rate limits usually restrict levies for all purposes and of all governments, state and local, having jurisdiction in a given area. The tax rate limit for general purposes for the City of Pasco is $3.60. TRUST FUNDS - Funds used to account for assets held by a government in a trustee capacity for individuals, private organizations, or other governments, and/or other funds. City of Pasco, Washington 130 2016 Budget Page 169 of 321 ORDINANCE NO. AN ORDINANCE ADOPTING THE CITY OF PASCO OPERATING BUDGET FOR THE YEAR 2016. WHEREAS, subsequent to due notice and public hearing thereon, the City Council of the City of Pasco has approved an operating budget for the year 2016; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section One. The following budget containing the totals set forth for each fund for the year 2016 is hereby adopted. FUND EXPENDITURE REVENUE 010 GENERAL FUND $ 55,026,463 $ 55,026,463 110 CITY STREET FUND 2,163,721 2,163,721 120 ARTERIAL STREET FUND 2,163,231 2,163,231 125 1-182 CORRIDOR TRAFFIC IMPACT FUND 1,530,954 1,530,954 130 STREET OVERLAY FUND 3,782,946 3,782,946 14X COMMUNITY DEVELOPMENT GRANT FUND 1,448,452 1,448,452 145 M.L. KING JR. COMMUNITY CENTER FUND 208,305 208,305 150 AMBULANCE SERVICES FUND 5,660,577 5,660,577 160 CITY VIEW CEMETERY FUND 276,721 276,721 161 BOULEVARD PERPETUAL MAINTENANCE FUND 2,409,232 2,409,232 165 ATHLETIC PROGRAM FUND 247,964 247,964 166 GOLF COURSE 1,846,122 1,846,122 170 SENIOR CENTER OPERATING FUND 312,533 312,533 180 MULTI -MODAL FACILITY FUND 242,316 242,316 182 SCHOOL IMPACT FEES 1,501,800 1,501,800 185 RIVERSHORE TRAIL & MARINA MAINTENANCE FUND 51,681 51,681 188 SPECIAL LODGING ASSESSMENT FUND 414,596 414,596 189 LITTER ABATEMENT FUND 20,501 20,501 190 REVOLVING ABATEMENT FUND 552,800 552,800 191 TRAC DEVELOPMENT & OPERATING FUND 535,349 535,349 192 PARK DEVELOPMENT FUND 1,897,125 1,897,125 193 CAPITAL IMPROVEMENTS FUND REET 1ST QTR 4,204,778 4,204,778 194 ECONOMIC & INDUSTRIAL DEVELOPMENT FUND 1,882,480 1,882,480 195 STADIUM / CONVENTION CENTER FUND 427,386 427,386 24X LID DEBT SERVICE FUND 1,111,597 1,111,597 27X G.O. BOND DEBT SERVICE FUND 250,757 250,757 367 GENERAL CAPITAL PROJECTS 21,447,570 21,447,570 410 WATER / SEWER UTILITY FUND 49,066,775 49,066,775 510 EQUIPMENT RENTAL OPERATIONS FUND - GOVERNMENT TYPE 1,080,474 1,080,474 511 EQUIPMENT RENTAL OPERATIONS FUND - PROPRIETARY TYPE 418,256 418,256 515 EQUIPMENT RENTAL REPLACEMENT FUND - GOVERNMENT TYPE 6,894,975 6,894,975 516 EQUIPMENT RENTAL REPLACEMENT FUND - PROPRIETARY TYPE 3,099,080 3,099,080 52X MEDICAL/DENTAL INSURANCE FUND 7,179,961 7,179,961 530 CENTRAL STORES FUND 11,829 11,829 605 CITY VIEW CEMETERY ENDOWMENT 484,324 484,324 610 OLD FIREMEN'S PENSION TRUST FUND 2,479,017 2,479,017 619 OLD FIRE MEDICAL (OPEB) 2,617,647 2,617,647 GRAND TOTAL ALL FUNDS $ 184,950,295 $ 184,950,295 Section Two. This Ordinance shall be in full force and effect on January 1, 2016. PASSED by the City Council of the City of Pasco this day of 2015. Matt Watkins, Mayor ATTEST: Debra L. Clark, City Clerk Approved as to Form: Leland B. Kerr, City Attorney Page 170 of 321 ORDINANCE NO. AN ORDINANCE ADOPTING THE CITY OF PASCO CAPITAL PROJECTS BUDGET FOR THE YEAR 2016 WHEREAS, subsequent to due notice and public hearing thereon, the City Council for the City of Pasco has approved the THE CITY COUNCIL OF THE CITY OF PASCO DOES ORDAIN AS FOLLOWS: Section One: That the capital projects are hereby authorized as detailed. The following schedule summarizes newly authorized projects Page 171 of 321 CAPITAL PROJECTS BUDGET FOR THE YEAR 201E 2016 Annual Portion CIP Budget Increases New CIP Budget Status Project Title 2015 Decreases Projects 2016 General Projects (2015 Continued) Continuing Fire Alerting Systems 285,000 - 285,000 Continuing Fire station Alerting Devices 45,000 - 45,000 Continuing Police Station 6,747,429 2,771,000 9,518,429 Continuing Financial System -Utility & Proj Acctg 292,687 - 292,687 Continuing Fire Station 81 Mobile Home 50,000 - 50,000 Continuing Police Training Facility 70,000 - 70,000 Total General Projects (2015) 7,490,116 2,771,000 - 10,261,116 General Projects (New 2016) 2016 New Fire Station 84 Remodel - - 450,000 450,000 2016 New City Hall Remodelling 1,500,000 1,500,000 Total General Projects (New 2016) 1,950,000 1,950,000 Total General Projects 7,490,116 2,771,000 1,950,000 12,211,116 Park & Facilities (2015 Continued) Continuing Three Rivers Park 455,000 - - 455,000 Continuing Animal Shelter Facility 203,000 - 203,000 Continuing 30 Acre Park NW Quad 950,000 - 950,000 Continuing Railroad Underpass Trail 35,000 - 35,000 Total Park & Facilities (2015) 1,643,000 - 1,643,000 Park & Facilities (New 2016) New (in 2016) Highland Park Lighting - - 241,000 241,000 New (in 2016) Specialty Kitchen Flooring Replacement - 70,000 70,000 New (in 2016) Peanuts Park Restoration - 250,000 250,000 New (in 2016) Soccer Facility - 1,200,000 1,200,000 New (in 2016) Community Center - 150,000 150,000 New (in 2016) Schlagle Park Improvements - 40,000 40,000 New (in 2016) Chiawana Park Shelter - 55,000 55,000 Total Park & Facilities (2016) - - 2,006,000 2,006,000 Total Park & Facilities 1,643,000 - 2,006,000 3,649,000 E & I Develop (2015 Continued) Continuing Broadmoor Development 165,000 155,000 - 320,000 165,000 155,000 - 320,000 E & I Develop (2016 New) New (in 2016) Broadmoor Planned Action SEPA - - 250,000 250,000 Total E & I Development Construction (2016) - - 250,000 250,000 Total E & I Development Construction 165,000 155,000 250,000 570,000 Street Construction (2015 Continued) Roads Continuing Road 68 Improvements (Phase II) 1,960,008 - - 1,960,008 Continuing Argent Road (Road 44 to 20th Ave) 831,212 332,000 1,163,212 Continuing Oregon Ave (SR397) - Phase 1 828,400 5,633,000 6,461,400 Continuing Oregon Ave (SR397) - Phase 2 310,560 - 310,560 Continuing Oregon Ave (SR397) - Entrance (Ph 2 Intersection) 192,617 - 192,617 Continuing Dual RT SB Road 68 663,275 486,000 1,149,275 Continuing 20th Ave Safety Improvements 815,000 1,223,000 2,038,000 Continuing Interchange Feasibility Study - 500,000 500,000 Page 171 of 321 2016 Annual Portion CIP Budget Increases New CIP Budget Status Project Title 2015 Decreases Projects 2016 Continuing Sylvester Neigborhood - Park St (5th Ave) 100,000 1,000 101,000 5,701,072 8,175,000 13,876,072 Signals Continuing Road 68 & Court St Signal Continuing Road 68 - Triple Right Continuing Traffic Signal Controller Upgrade Continuing Bus Pre -Exemption @ CBC/Argent 105,000 541,711 Ramps & Under/Over Passes Continuing Lewis St One Way Couplets Continuing Lewis St Overpass Continuing Wrigley Drive Extension Continuing Chapel Hill Extension - Street Continuing 2015 Alley Hard Surfacing (Chip Sealing) 105,000 541,711 420,000 2,182,000 525,000 2,723,711 646,711 2,602,000 3,248,711 428,600 50,000 478,600 6,017,726 250,000 6,267,726 10,000 250,000 260,000 60,000 - 60,000 135,600 127,000 262,600 6,651,926 677,000 7,328,926 Total Street Construction (2015) 12,999,709 11,454,000 - 24,453,709 Page 172 of 321 Street Construction (New 2016) 12,999,709 11,454,000 New (in 2016) Pavement Preservation Program 750,000 750,000 Continuing Utah Avenue Extension to James Street - 64,000 64,000 New (in 2016) Sandifur Parkway Widening 200,000 200,000 New (in 2016) James Street Improvements - 40,000 40,000 New (in 2016) Transportation System Planning 160,000 160,000 New (in 2016) Pavement Rating 90,000 90,000 New (in 2016) Powerline Road (Road 68 to Convention Drive) 200,000 200,000 New (in 2016) Road 76 Overpass (Argent Road to Burden Boulevard) 20,000 20,000 - Street Construction (New 2016) 1,524,000 1,524,000 Page 172 of 321 Total Streets Construction 12,999,709 11,454,000 1,524,000 25,977,709 Water Construction (2015 Continued) Continuing Columbia Water Supply Project 4,819,550 4,500,000 - 9,319,550 Continuing Butterfield WTP- Sludge Drying Bed 100,000 104,000 204,000 Continuing Oregon Avenue Water Line (Phase 1) 100,000 1,000,000 1,100,000 Continuing East Side Booster Station Upgrade (BS 2.1) 510,000 669,000 1,179,000 Continuing Butterfield WTP - Travelling Screens - - - Continuing Butterfield WTP 24 In. Valve Replace 14,284 243,000 257,284 Continuing Butterfield WTP - South Basin Drain By -Pass 70,000 - 70,000 Continuing Butterfield WTP -Intake Screens 1,479,077 - 1,479,077 Distribution - Extensions Continuing Warnett Pipeline 25,000 70,000 95,000 Continuing 2015 Annual Water Line Upsize Match 100,000 100,000 200,000 Continuing Water Line Ext - Chapel Hill Blvd. - - - Continuing Water Line Extension - PWRF 60,000 - 60,000 Plants. Meters. & Pump Stations Continuing Water Master Plan/Comprehensive Water System Plan 100,000 100,000 200,000 Continuing 3" Poly Water Main Loop 200,000 - 200,000 Continuing Comprehensive Water System Plan 80,000 - 80,000 Distribution - Replacement Continuing 2015 Water Line Replacement 19,000 150,000 169,000 Total Water Construction (2015) 7,676,911 6,936,000 - 14,612,911 Water Construction (New 2016) New (in 2016) Butterfield - Fluoride Room Tank Truck Access - - 65,000 65,000 New (in 2016) West Side Water Treatment Plant Filters 100,000 100,000 New (in 2016) 2015 Water Line (Asbestos Cement) Replacement (Varii 150,000 150,000 New (in 2016) Butterfield WTP- Chlorine Safety Improvements 75,000 75,000 New (in 2016) WPWTP Backwash Ponds 100,000 100,000 New (in 2016) Butterfield WTP- Sedimentation Basin Roof Structures 30,000 30,000 Total Water Construction (New 2016) - - 520,000 520,000 Total Water Construction 7,676,911 6,936,000 520,000 15,132,911 Irrigation Construction (2015 Continued) Continuing Well House - Linda Loviisa 59,900 - - 59,900 Continuing Freshwater Mussels Study 25,000 - - 25,000 Page 172 of 321 Continuing Continuing Continuing New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) Continuing Continuing Continuing Continuing Continuing Continuing New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) Plant and Lift Stations Plant Roof Railing Maitland Lift Station- Purchase/ Install 4th Pump Turbo Compressor Inlet Suction Retrofit Total Sewer Construction (2015) Sewer Construction (New 2016) Capitol Lift Station Lift Station - Pearl Street Kahlotus Lift Station Force Main Pipe Retrofit Secondary Digester #1 Replace Grit Clarifiers Maitland Lift Station- Purchase/ Install 4th Pump Waste Activated Thickening 9th & Washington Lift Station Road 36 Lift Station Upgrades Total Sewer Construction (2016) 125,000 - 125,000 75,000 - 2016 Annual Portion 25,000 100,000 125,000 5,576,312 2,980,000 CIP Budget Increases New CIP Budget Status Project Title 2015 Decreases Projects 2016 Continuing Well House Additions Road 52 10,000 10,000 Continuing Irrigation Line Ext - Chapel Hill 10,000 - 10,000 Total Irrigation Construction (2015) 104,900 104,900 Irrigation Construction (New 2016) New (in 2016) Well Replacement - Village At Pasco Heights - 200,000 200,000 New (in 2016) Irrigation O & M Building 100,000 100,000 New (in 2016) Road 108 VFD Upgrade 65,000 65,000 New (in 2016) Activate Dry Systems 750,000 750,000 New (in 2016) Irrigation Line Extensions - - New (in 2016) Irrigation Booster Pump Station 60,000 60,000 Irrigation Construction (New 20161 - 1,175,000 1,175,000 Total Irrig Construction 104,900 - 1,175,000 1,279,900 Sewer Construction (2015 Continued) Plant and Lift Stations Continuing 2013 WWTP Imp - Screw Press 500,000 50,000 - 550,000 Continuing WWTP - Primary Clarifier No. 3 2,621,763 2,430,000 5,051,763 Collections - Extensions Continuing 30" Main (NW Area) 322,000 - 322,000 Continuing 2015 Annual Sewer Line Extension - 100,000 100,000 Continuing Chapel Hill Blvd. Extension - Sewer - - - Collections - Replacements Continuing 2014 Annual Sewer Line Re -lining Program 182,992 - 182,992 Continuing 2015 Annual Sewer Line Re -lining Program 310,000 300,000 610,000 Continuing West Pasco Trunk Sewer Repair 1,314,557 - 1,314,557 Continuing 2015 Annual Sewer Line Re -lining Program 100,000 100,000 Continuing Continuing Continuing New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) Continuing Continuing Continuing Continuing Continuing Continuing New (in 2016) New (in 2016) New (in 2016) New (in 2016) New (in 2016) Plant and Lift Stations Plant Roof Railing Maitland Lift Station- Purchase/ Install 4th Pump Turbo Compressor Inlet Suction Retrofit Total Sewer Construction (2015) Sewer Construction (New 2016) Capitol Lift Station Lift Station - Pearl Street Kahlotus Lift Station Force Main Pipe Retrofit Secondary Digester #1 Replace Grit Clarifiers Maitland Lift Station- Purchase/ Install 4th Pump Waste Activated Thickening 9th & Washington Lift Station Road 36 Lift Station Upgrades Total Sewer Construction (2016) 125,000 - 125,000 75,000 - 75,000 25,000 100,000 125,000 5,576,312 2,980,000 8,556,312 320,000 320,000 170,000 170,000 250,000 250,000 60,000 60,000 108,000 108,000 75,000 75,000 975,000 975,000 78,000 78,000 30,000 30,000 2,066,000 2,066,000 Total Sewer Construction 5,576,312 2,980,000 2,066,000 10,622,312 PWRF Construction (2015 Continued) PWRF Plant - Phase 2 - Sed Basin PWRF Phase 3 BOD - Aeration Pond PWRF Master Plan Phase 3 - BOD- Screw Press Phase 5 - EQ Basin Rebuild (5MG) Phase 6 - Valve/Meter/SCADA 2014 Replace Total PWRF Construction (2015) PWRF Construction (New 2016) Foster Wells Lift Station - Air Conditioning Unit Dietrich Lift Station (aka Kahlotus/PWRF) PWRF Storage Pond System Piping Process Water Reuse Facility Pump Station Farm Operations Optimization Total PWRF Construction (2016) 1,647,950 437,000 2,084,950 40,000 80,000 120,000 255,000 100,000 355,000 8,000 134,000 142,000 100,817 - 100,817 2,051,767 751,000 2,802,767 20,000 20,000 5,650,000 5,650,000 64,000 64,000 100,000 100,000 120,000 120,000 5,954,000 5,954,000 Total PWRF Construction 2,051,767 751,000 5,954,000 8,756,767 Page 173 of 321 2016 Annual Portion CIP Budget Increases New CIP Budget Status Project Title 2015 Decreases Projects 2016 Stormwater Construction (New 2016) Storm Water Master Plan 150,000 150,000 Annual Stormwater Improvement - - Stormwater Relining Program - - Total Stormwater Construction (2016) 150,000 150,000 Total Stormwater Construction - 150,000 - 150,000 TOTAL CIP BUDGET 37,707,715 25,197,000 15,445,000 78,349,715 TOTAL 2015 CONTINUING 37,707,715 25,197,000 - 62,754,715 TOTAL 2016 NEW - 15,445,000 15,595,000 Section Two: This Ordinance shall be in full force and effect on January 1, 2016 PASSED by the City Council of the City of Pasco this day of 2015. Matt Watkins, Mayor ATTEST: Debra L. Clark, City Clerk Approved as to Form: Leland B. Kerr, City Attorney Page 174 of 321 AGENDA REPORT FOR: City Council TO: Dave Zabell, City Manager FROM: Ahmad Qayoumi, Director Public Works November 25, 2015 Regular Meeting: 11/30/15 SUBJECT: Utility Rate Adjustments (Sanitary Sewer and Water) I. REFERENCE(S): Ordinance Financial Consulting Services Inc. (FCS) Presentation dated November 9, 2015 IL ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. amending Chapter 3.07 of the Pasco Municipal Code effective January 1, 2016 regarding sewer and water utility rates and, further, authorize publication by summary only. III. FISCAL IMPACT: Increases water and sewer rates IV. HISTORY AND FACTS BRIEF: In preparation for the issuance of water and sewer revenue bonds to fund needed improvement to the City's water distribution system ($4 million), the Primary Clarifier Upgrade at the Wastewater Treatment Plant (WWTP) and other sewer projects ($7 million), staff and our consultant FCS have prepared an analysis of the projected revenues and expenses for the water and sewer fund over the next several years. The 6 -year Capital Improvement Plan (CIP) adopted by City Council on September 8, 2015 (Resolution #3654), and the adopted Sewer and Water Master Plans, along with operation and maintenance cost projections were utilized to develop the revenue needs and to calculate the necessary rates increases in the two utilities. The Council was provided a detailed presentation from staff and FSC on November 9, 2015 which included major assumptions impacting costs and revenue needs in the water and sanitary sewer utilities over the next three to six years. Page 175 of 321 V. DISCUSSION: SANITARY SEWER: As background, the monthly residential sanitary sewer rate hit its high in 2004-2006. As illustrated below, the rate was subsequently reduced on multiple occasions to its current rate of $24.80 since 2011. The decreases were in large part due to the growth in customer accounts (economy of scale effect) over this period and a relatively stable regulatory environment. $35.00 2016 $29.99 $30.59 $30.00 $25.00 $29.40 $30.59 $30.59 $26.00 $24.80 $24:80 $24.80 $24.80 $24.80 $20.00 $15.00 9.00% 6.00% Increases $10.00 $5.00 Sample $24.80 $ I I I I I I -I 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Ten years later the system has aged a decade, growth is not continuing at the same rate of a decade ago, and regulations have evolved requiring more sophisticated and involved levels of treatment, and during this same period the cost of chemicals, staffing and electricity have all increased. The proposed three year rate schedule, highlighted in the table below represent the first sanitary sewer rate increases in half a decade and for 2016 and 2017 will maintain a rate well below that of a decade ago. The proposed increase in 2018 would result in a rate approximately 3 percent higher than the 2004- 2006 rate. Sewer Existing 2016 2017 2018 Proposed 9.75% 9.00% 6.00% Increases Sample $24.80 $27.22 $29.67 $31.45 Residential Monthly Bill Difference $0.00 $2.42 $2.45 $1.78 Page 176 of 321 WATER: As illustrated in the monthly residential water rate chart below, water rates have risen modestly over the past decade and a half with a significant catch up for 2014. Similar to sanitary sewer, Growth has served to moderate water rates over time. Like sewer, much of the water system aged during that time (new development excluded). Additionally, some of the facilities incorporated into the water system through annexation require attention. The adopted Water System Master Plan and the Quad Cities Water Rights Agreement drove the development of the CIP water projects. Further, regulatory developments, the need for more sophisticated and involved levels of treatment and the cost of chemicals, staffing and electricity have all increased. Additionally, due to limited capacity at the time, a deferred maintenance strategy was employed during the growth period so that the major focus could be on meeting new system demands. Unlike sanitary sewer, the catch up rate and recent investment in infrastructure in water allows for a more moderate proposed increase of 5 percent over the next three-year horizon as highlighted in the table below. Water Existing $18.00 2017 $16.00 Proposed $14.00$16.25 $12.OD 5.00% $10.00 $io.50 $M.50$10.5 10.50 $12.50 $12.50 $8.00 sq. -7o $1010 $10.50 $10.50 $6.00 $4.00 Sample $22.55 $2.00 $24.86 $26.10 Residential 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Like sewer, much of the water system aged during that time (new development excluded). Additionally, some of the facilities incorporated into the water system through annexation require attention. The adopted Water System Master Plan and the Quad Cities Water Rights Agreement drove the development of the CIP water projects. Further, regulatory developments, the need for more sophisticated and involved levels of treatment and the cost of chemicals, staffing and electricity have all increased. Additionally, due to limited capacity at the time, a deferred maintenance strategy was employed during the growth period so that the major focus could be on meeting new system demands. Unlike sanitary sewer, the catch up rate and recent investment in infrastructure in water allows for a more moderate proposed increase of 5 percent over the next three-year horizon as highlighted in the table below. Water Existing 2016 2017 2018 Proposed 5.00% 5.00% 5.00% Increases Sample $22.55 $23.68 $24.86 $26.10 Residential Monthly Bill Difference $0.00 $1.13 $1.18 $1.24 While there is well founded and documented need for the proposed rate increases, any increase is significant to those paying the rate. While not necessarily a good measure of value as systems and factors vary so greatly from community to community, as Page 177 of 321 depicted below even with the proposed water and sewer rates Pasco still compares favorably to those of neighboring cities as shown below: walla Walla Yakima Ellensburg Moses Lake Pasco 2016 Proposed Richland $25.60 Pasco 1 $24.80 Wenatchee $23.92 Kennewick $21.22 2015 Existing Sewer Rate Comparison 2015 Existing Water Rate Comparison Vfalla VValla Richland Ellensburg Wenatchee Moses Lake Pasco 2016 Proposed Pasco Yakima Kennewick $35.80 $32.14 $26.25 $25.96 I $23.68 1 $22.55 S21.91 $20.77 $48.20 $52.10 Much effort has been expended in developing a rate proposal that will realistically meet the demand, maintenance and regulatory requirements of the sanitary sewer and water systems. Staff recommends Council approve the attached ordinance as proposed. The ordinance includes the rate increases for the next three years. This item was most recently discussed at the November 9, 2015 council meeting. Page 178 of 321 ORDINANCE NO AN ORDINANCE of the City of Pasco, amending Pasco Municipal Code Sections 3.07.160 (Water User Fees) and 3.07.170 (Sewer User Fees). WHEREAS, the City completed a rate study with the assistance of FCS in October of 2015 to determine the impact of needed improvements and system expansion for regulatory compliance and to provide continuous service to customers; and WHEREAS, the City Council has determined that certain amendments to the water and sewer user fees are needed; and WHEREAS, a water rate increase of 5% for each of the next three years, beginning in 2016 is recommended; and WHEREAS, sewer rate increases of 9.75% for 2016, 9% in 2017, and 6% in 2018 are recommended; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. PMC Section 3.07.160 is amended to read as follows: 3.07.160 WATER USER FEES: Fee/Charge Reference 2016 2017 2018 A) Inside City: 1) Consumption - per 100 cubic foot $0.74 $0.77 $0.81 13.20.050 2) Bulk -per 1000 gallons $1.21 $1.27 $1.33 13.20.070 B) Residential - single family base fees: 1) 3/4 and 5/8 inch - per month $17.06 $17.92 $18.81 13.20.020 2) 1 inch - per month $25.57 $26.85 $28.19 13.20.020 3) Outside City; effective 11/1/02 90% Surcharge 13.20.080 Sr. Citizen/Low Income: 4) 3/4 and 5/8 inch - per month $5.67 $5.95 $6.25 3.200.150 5) 1 inch - per month $8.56 $8.99 $9.43 3.200.150 6 Outside City; effective 11/1/02 90% Surcharge 13.20.080 C) Commercial - multi -family, irrigation, commercial base fees: 1) 3/4 inch - per month $24.05 $25.25 $26.51 13.20.030 2) 1 inch - per month $35.18 $36.93 $38.78 13.20.030 3) 1-1/2 inch - per month $67.73 $71.11 $74.67 13.20.030 4) 2 inch - per month $108.62 $114.05 $119.76 13.20.030 5) 3 inch - per month $148.37 $155.78 $163.57 13.20.030 Page 179 of 321 6) 14 inch - per month $213.78 $224.47 $235.69 13.20.030 7) 6 inch - per month $333.69 $350.37 $367.89 13.20.030 8) 8 inch - per month $462.42 $485.54 $509.82 13.20.030 9) Outside City; effective 11/1/02 90% Surcharge 13.20.080 Section 2. PMC Section 3.07.170 is amended to read as follows: 3.07.170 SEWER USE FEES: Fee/Charge Reference 2015 2016 2017 A) Residential and Commercial - Base Fee 1) Residential: a) 1-4 units - per month $27.22 $29.67 $31.45 13.40.020 b) 5 and over - per month $21.95 $23.93 $25.36 13.40.020 c) Outside City 50% Surcharge 13.40.060 d) Consumption Sr. Citizen/Low Income: a) Single Dwelling Unit $9.11 $9.93 $10.52 13.40.050 b) Outside City 50% Surcharge 13.40.060 2) Commercial a) Base Fee: per month $36.60 $39.90 $42.29 13.40.040 b) Consumption per 100 cubic feet over 1000 cubic feet $1.42 $1.54 $1.64 13.40.040 3) Hotel/Motel: a) Base Fee: per unit/per month $5.76 $6.28 $6.66 13.40.030 b Consumption per 100 cubic feet over 1000 cubic feet $1.42 $1.54 $1.64 13.40.030 c) Outside City 50% Surcharge 13.40.060 Section 3. This ordinance shall be in full force and effect on and after January 1, 2016 after passage and publication, as provided by law. PASSED by the City Council of the City of Pasco, Washington, and approved as provided by law this 30th day of November, 2015. Matt Watkins, Mayor ATTEST: APPROVED AS TO FORM: Debra L. Clark, City Clerk Leland B. Kerr, City Attorney Ordinance Amending PMC 3.07.160, 3.07.170 and 3.07.210 Page 2 Page 180 of 321 CITY OF PACO w Utilities Rate Study Angie Sanchez Virnoche, Principle Sergey Tarasov, Project Manager November 10, 2015 v CD Co N O W N Discussion Outline • Overview of study process Key assumptions Fiscal policy targets Summary of findings Water Sewer Stormwater in progress for mid 2016 Irrigation in progress for mid 2016 Next steps • Questions Page 2 'Revenue Requirement Process CAPITAL FUNDING Adi L FISCAL POLICIES REVENUE REQUIREMENT RATE DESIGN Page 3 •:�� Ke AssumDtions • Study period 2015-2021 Projected rate revenue based on 2014 customer data 2016 budget used as baseline — the following escalation factors used for future years: General Cost Inflation: 2.29% Construction Cost Inflation: 3.26% Customer Growth: 1.00-1.50% New Debt Revenue Bonds: 20 year term, 4.5% interest, 1.0% issuance Page 4 •:�� Fiscal Policy Targets Page 5 Purpose Target Operating To provide sufficient cash flow to meet daily operating Days 0&M Water: 55 Dayay - $1.3 mil Reserve expenses (short-term, annual revenue cycles) Sewer: $773- $860 k Capital p To provide a source of funding for emergency repairs, 2% of Plant -In -Service: Water: $2.0-$2.7 mil Contingency unanticipated capital, and project cost overruns. Sewer: $2.143.1 mil System To ensure ongoing system integrity through Currently no assumed system reinvestment funding Reinvestment reinvestment in the system. Phased in throughout the study period for: Water: $500k in 2018 - $650k by 2021 Funding Sewer: $250k in 2018 - $725k by 2021 Debt Service To ensure compliance with existing loan/debt Minimum Requirements Coverage covenants and maintain credit worthiness for future Revenue Bond Requirement: 1.25 debt issuance. Page 5 Co 0 W N Water •:�� Ke Components - Water Description Existing Rate Revenue 0&M Expenses Water $8.7 - $9.2 mil $7.3 - $8.4 mil Existing Debt Service $1.6 - $1.8 mil New Debt Service $420 k - $1.9 mil System Reinvestment $0 k- $650 k Total CIP (2015-2021) L- I$35,829,374 Annual Capital Costs $12,000,000 $10,000,000 $9,821,080 $8,000,000 $7,522,253 $6,264,686 $6,000,000 $5,459,860 $4,000,000 $2,589,858$2,794-,658 $2,000,000 1,376,978 2015 2016 2017 2018 2019 2020 2021 Total CIP of $35.8M funded by cash, grants, capital expansion/front footage fees, DWSRF loan and new debt New Revenue Bond Debt: $22.01M required for 2015-2021 Secured DWSRF Loan: $6.8M Draws in 2016 and 2017 *Note: Revenue bonds assume first issuance in 2015, no payments until 2016 Page 7 v cD co 00 0 CA) N •:�� Water Revenue Reauirement Summa $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 il 2015 2016 2017 2018 2019 2020 2021 r Casks Operating Expenses Existing Debt Service New Debt Service t Reserve Funding a Rate Funded System Reinvestment—Total Existing Revenue Tota! Revenue After Rate Increase Notes: Sample bill for 5/8" residential customer with average usage of 9 ccf Page 8 •.�� Rate Comparison 2015 Existing Water Rate Comparison Walla Walla i I 548.20 i Richland I 535.80 Ellensburg $32.14 Wenatchee $26.25 Moses Lake $25.96 Pasco 2016 1 I $24.13 Pasco $22.55 Yakima $21.91 Kennewick $20.77 Note: Assumes 9 ccf monthly usage; 5/8" or 3/4" meter Page 9 Sewer CD 0 W N v cD 0 CA) N •:�� Ke Components - Sewer Description Sewer i Existing Rate Revenue $6.7 - $7.3 mil 0&M Expenses Existing Debt Service New Debt Service $5.0 - $5.7 mil $570 k - $2.6 mil $246 k - $3.7 mil System Reinvestment $0 k - $725 k Total CIP (2015-2021) $53,201,408 $167000;000 $14,000.000 $12,000.000 $10,000.000 S8,000.000 $6,000,000 S4,000.000 $2,000,000 S_ Annual Capital Costs 2015 2016 2017 2018 2099 2020 2021 Total CIP of $53.2M funded by cash, grants, capital expansion/front footage fees, restricted bond funds and new debt New Revenue Bond Debt: $41.5M required for 2015-2021 *Note: Revenue bonds assume: -first issuance in 2015, no payments until 2016 -interest only debt until 2020 Page 11 v CD Co N O W N •: � Sewer Revenue Reauirement: Option 1 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 2015 2016 2017 2018 2019 2020 2021 r Cash Operating Expenses Existing Debt Service +New Debt Service o Reserve Funding oRate Funded System Reinvestment —Total Existing Revenue $1.4M of reserves used over years 2015, 2016 and 2017 Page 12 Sewer Revenue Reauirement ODtion 2 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 2015 2016 2017 2018 2019 2020 2021 i Gash Operating Expenses Existing Debt Service New Debt Service o Reserve Funding oRate Funded System Reinvestment —Total Existing Revenue —Total Revenue After Rate Increase Assumes full principle and interest payments begin in 2016 $1.6M of reserves used in 2015, 2016 and 2017 Page 13 ❖ Sewer H Rate Review $35.00 $29.40 $29.99 $30.59 $30.59 $30.59 $30.00———————-—-_----——————----—————————————— — — — — —— 3 27.53 27.53 $7.53 $26.00 $27.5 $24.80 $24.80 $24.80 $24.80 $24.80 $25.00 $20.00 $15.00 - $10.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 --4-- Historical Rates — — — 20042006 Rates Highest proposed rate increase (2016 Option 2) of 11.00% would hold rates below 2004-2006 levels Page 14 v CD Cn 0 W N Rate Comparison Walla Walla Yakima Ellensburg Moses Lake Pasco 2016 Option 2 Pasco 2016 Option 1 Richland Pasco Wenatchee Kennewick 2015 Existing Sewer Rate Comparison Note: Assumes one single family residence $52.10 Page 15 •:�� Combined Rate Impact Difference $ 3.81 $ 3.64 $ 3.03 $ 3.20 $ 3.38 $ 3.57 Difference $ 4.31 $ 4.23 $ 3.18 $ 3.28 $ 3.46 $ 3.66 Water: Assumes 9 ccf monthly usage; 5/8" meter Sewer: Assumes 1 single family resident v CD M 0 w N v CD CD 11 0 CA) N •:�� Combined Rate Comparison Ellensburg Yakima Richland Moses Lake Pasco 2016 Option 2 Pasco 2016 Option 1 Wenatchee Pasco Kennewick Water: Assumes 9 ccf monthly usage; %" meter Sewer: Assumes 1 single family resident 2015 Existing (Utility Rate Comparison S- $10 $20 $30 $ao $50 $60 $70 ■Water ■Sewer Page 17 •:�� Next Steps Incorporate feedback Adopt proposed rate increases by utility: Water: Assumes 9 ccf monthly usage; %" meter Sewer: Assumes 1 single family resident — No rate structure changes, equal increases to all rate components New rates effective January 1St, 2016 2016 Goals Stormwater & Irrigation Revenue Requirement Cost of Service (equity) for water and sewer Revisit capital expansion fees Page 18 CD Q0 co O CA) N uestionslDiscussion W-0 1 AGENDA REPORT FOR: City Council TO: Dave Zabell, City Manager FROM: Bob Gear, Fire Chief Fire Department SUBJECT: Ambulance Utility Rate Adjustment I. REFERENCE(S): November 24, 2015 Regular Meeting: 11/30/15 Ambulance Utility Cost of Service and Rate Study, November 2015 Cost of Service Table Proposed Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. amending PMC Section 3.07.010 'Ambulance,' adjusting the Ambulance Utility fees and, further, authorize publication by summary only. III. FISCAL IMPACT: Ambulance Fund Revenue of $1,346,712 IV. HISTORY AND FACTS BRIEF: Historically the City Council has been provided a preliminary budget which provides for a programmed $420,000 annual subsidy from the General Fund to the ambulance utility. The $420,000 subsidy was established by statue, however, within the past several years, state law has changed such that the City would not be required to subsidize the ambulance utility. The proposed rate, included in the 2016 preliminary budget would NOT eliminate the $420,000 subsidy. In past years the General Fund subsidy has been regularly increased toward the end of the fiscal year to reflect actual conditions; the subsidy was increased in 2012 and 2013 to $890,000 and $1,157,000 respectively as part of an end of year budget amendment. Earlier this year a cost of service study of the fire and ambulance functions was commissioned. The consulting firm of Financial Consulting and Services Group Page 200 of 321 (FCSG) of Redmond, WA was tapped to conduct the analysis. The firm is widely known throughout the Northwest for such work, as well as utility rate studies. From a pure cost of service analysis, based on the services Fire and Ambulance personnel provide to the public, the FSCG report concluded that 84% of the time spent by department personnel (Fire and Ambulance) is spent on emergency medical services. Put in terms of dollars, to fully fund emergency services provided by the department through the Ambulance Utility, fund revenues and expenditures would have to increase from the current amount of $3.8 million to approximately $7 million and the Fire budget reduced correspondingly. While utilizing a true cost of service model for the Ambulance Utility might be a long-term goal, transitioning the Ambulance Utility from current conditions to such a model in the course of one budget cycle is NOT recommended. V. DISCUSSION: The integrated operation of Fire and Ambulance services provides for an economy of scale that benefits the taxpayers (General Fund) and ambulance utility ratepayers. With the ambulance and fire apparatus responding to all calls in tandem, crews from fire are available to supplement ambulance and visa -versa. While emergency medical calls represent the vast majority of the work performed by the department, there is sound logic to why the Ambulance Utility should not capture 100% of its costs from the ratepayer. The current monthly ambulance utility fee of $7.75 over approximately 22,800 accounts theoretically generates $7.75 X 22,800 X 12 = 2.1 million, the actual amount is slightly less as collections are not at 100 percent. Based on a modified cost recovery model, the 2016 preliminary budget recommendation is to increase fund revenues by $1.35 million through a rate increase of $4.90 per month. While a significant rate increase, the Ambulance Utility will still require a healthy budgeted General fund Subsidy of $420,000 at a minimum. Offsetting in part the proposed monthly ambulance utility rate, is a significant decrease of $150 in the resident transport fee from the current rate of $700 to $550. This decrease is extended to Pasco residents only as they pay the monthly rate. The non- resident transport rate is proposed to remain at $1,050 per trip. The attached table, from the cost of service analysis, provides a snap shot of the actual cost of emergency services. With the true subsidy to the ambulance fund, from a cost of service standpoint, is currently on the order of $3.2 million. To achieve full cost recovery from ambulance related rates and fees, an increase of the monthly ambulance fee from $7.75 to $21.13 would be required. The 2016 preliminary budget recommendation discounts the full cost recovery model by taking into account the mutual benefit created through integrated fire and ambulance services. Under the recommended model, the ambulance utility recovers two-thirds of Page 201 of 321 its actual cost of service through rates and fees, and one-third from the true General Fund subsidy. Staff recommends adoption of the ordinance increasing the ambulance utility rate to provide a more appropriate allocation of costs between the ambulance utility and the General Fund fire budget and assure the solvency of the ambulance utility. Page 202 of 321 City of Pasco Ambulance Utility Cost of Service and Rate Study November 2015 FCS GROUP 7525 166th Avenue NE, Suite D-215 Redmond, WA 98052 T: 425.867.1802 1 F: 425.867.1937 This entire report is made of readily recyclable materials, including the bronze wire binding and the front and back cover, which are made from post -consumer recycled plastic bottles. Page 203 of 321 • Finn Headquarters Servingthe Western U.S. ••4 FC S GROUP Redmond Town Center and Canada since 1988 Solutions -Oriented Consulting 7525 1661h Ave NE Washington 1 425.867.1802 Suite D-215 Oregon 1 503.841.6543 Redmond, Washington 98052 November 18, 2015 Robert Gear, Fire Chief Pasco Fire Department 310 N. Oregon Street Pasco, WA 99301 Subject: Ambulance Cost of Service and Rate Study Dear Chief Gear: Attached is our final report on the results of our Ambulance Cost of Service and Rate Study. We want to thank you and all the City staff for their assistance and participation in helping us gather information for the study. If you have any questions, please feel free to contact me at (425) 867-1802 extension 228. Sincerely, Peter Moy Principal "- - L &1-7 Christine Elting Analyst Page 204 of 321 City of Pasco, Washington Ambulance Cost of Service and Rate Study November, 2015 page i TABLE OF CONTENTS CHAPTER I: INTRODUCTION.......................................................................................................... 1 AmbulanceUtility Legislation......................................................................................................................1 ThePasco Fire Department.........................................................................................................................2 ResponseHistory.......................................................................................................................................3 CHAPTER II: COST OF SERVICE ANALYSIS................................................................................... 4 LaborCosts.....................................................................................................................................................5 Supplies, Services, and Other Costs..........................................................................................................5 Ambulance Availability and Demand Costs...........................................................................................6 CHAPTER III: RATE ANALYSIS......................................................................................................... 8 CustomerClasses..........................................................................................................................................8 Availabilityand Demand Costs..................................................................................................................9 RateAlternatives.........................................................................................................................................10 CHAPTER IV: FORECAST.............................................................................................................. 12 APPENDIX A: COST OF SERVICE ANALYSIS DETAILS ':;� FCS GROUP Page 205 of 321 City of Pasco, Washington Ambulance Cost of Service and Rate Study November, 2015 Page 1 CHAPTER I: INTRODUCTION To ensure ambulance utility rates sufficiently cover the cost of providing ambulance and emergency medical services (EMS), the City of Pasco is reviewing its cost of service and the rates. The City has not conducted a recent cost of service study, and the City wants to determine what rates are needed to fully support the cost of providing its services. About 79% of the City's call volume is related to EMS, while only 21% are associated with fires, hazardous materials, technical rescues, and fire safety activities. The City's 2015 budget for the Fire Department is supported 60% by the General Fund and 40% by ambulance related revenues. The 2014 call volume was 4,725, and the number of calls is expected to increase to 5,906 calls by 2019. To meet this demand and improve its response times, the Fire Department is anticipating adding an engine company at Station 84. To help the City understand the impacts of adding another engine company and increased incidents, a five year forecast was also developed. AMBULANCE UTILITY LEGISLATION The Revised Code of Washington (RCW) Section 35.21.766 gives all cities and towns the authority to establish an ambulance service to be operated as a public utility. This includes the authority for a City Council to set and collect rates and charges for regulating, operating, and maintaining an ambulance utility. It also identifies the policies with regard to classifying costs and setting rates for an ambulance utility. In July 2011 the Washington State Legislature amended RCW 35.21.766 by eliminating the requirement that the General Fund continue to provide support to ambulance utilities at 70% of the May 2004 funding level. As a result, cities now have more freedom to decide how much support their General Fund will provide to their ambulance utility. However, a city must do the following before implementing the additional support: • Hold a public hearing, preceded by at least 30 days notice provided in each ratepayer's utility bill. • During the public hearing, allow for public comment and present the following information: ■ The utility's most recent cost of service study, ■ A summary of the utility's current revenues sources, ■ A proposed budget reflecting the reduced allocation of General Fund revenues, ■ Any proposed changes to utility rates, and ■ Any anticipated impact to the utility's level of service. According to RCW 35.21.766, a cost of service study is required to identify the total cost necessary to regulate, operate, and maintain the ambulance utility. FCS GROUP was engaged by the City to develop a cost of service study and the related ambulance utility rates. FCS GROUP's scope of work included: • Reviewing and analyzing fire department and ambulance costs and workload data, ':;� FCS GROUP Page 206 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Page 2 • Developing the cost of service framework and establishing the cost of service for fire and emergency medical services, • Establishing and identifying customer classes and cost allocation methods for the ambulance utility, • Calculating availability and demand rates for each customer class, consistent with RCW 35.21.766, and • Developing a five year forecast identifying the impacts of an additional engine company on the ambulance utility rates. To accomplish the scope of work, FCS GROUP worked with City staff members in analyzing the cost of service, EMS response data, and customer class data. We want to thank all the City staff that participated and assisted us in gathering and analyzing the data. THE PASCO FIRE DEPARTMENT The mission of the Pasco Fire Department is to make the best use of department resources to provide the Pasco community with effective mitigation of fire, rescue, hazardous materials and medical emergencies with compassion, integrity, and respect for its citizens. The department operates out of three stations dispersed throughout the City and employs 49 career firefighters. The Department's Operations Division is composed of three shifts that work an alternating schedule of 24 hour shifts. The Division includes four battalion chiefs, six captains, three paramedic captains, one lieutenant/paramedic, two lieutenants, eighteen firefighter/paramedics, and eighteen firefighters. The Operations Division of the Pasco Fire Department is responsible for emergency medical services, fire suppression, mitigation of disasters, and rescue activities. Three specialized units within the Operations Division include the Hazardous Materials Response Team, Technical Rescue Team, and Aircraft Rescue Firefighting (ARFF) duties at the Tri -Cities Airport. The City currently budgets its Fire Department costs in the General Fund and in its Ambulance Fund. The 2015 budget for the Fire Department is displayed below in Exhibit 1. The total combined cost of providing fire and EMS services was $9,612,925. Exhibit 1 2015 General Fund and Ambulance Fund Budget Expense Category General Fund Ambulance Fund Total Personnel $4877,115 $2,386,975 $7,264,090 Supplies & Services $912,976 $1,388,338 $2,301,314 Capital $7,521 $40,000 $47,521 Total $5,797,612 $3,815,313 $9,612,925 Exhibit 2 displays the expenditure history of the Fire Department for fire and EMS services over the past five years separated into the General Fund and the Ambulance Fund. ':;� FCS GROUP Page 207 of 321 City of Pasco, Washington November, 2015 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Ambulance Cost of Service and Rate Study Page 3 Exhibit 2 Fire Department Expenditure History 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Budget ■ General Fund ■ Ambulance Fund Call Volume History As previously mentioned, the Pasco Fire Department responded to a total of 4,725 emergency incidents in 2014 that included 3,715 EMS incidents. Exhibit 3 displays the City's call volume history since 2007. Total and EMS calls have grown more than an 80% since 2007. Exhibit 3 Call Volume History 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 4234 4399 4331 3856 3807 3715 3546 3474 3594 3337 3005 3016 9774 253 201 2007 2008 2009 2010 2011 2012 2013 2014 Total Calls --W-EMS Source: City of Pasco Ambulance Utility Review PowerPoint Presentation and Revised Incident Forecast The following chapters discuss and analyze the City's cost of service and ambulance rates and forecast the future rate impacts of adding an engine company. •:;> FCS GROUP Page 208 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Page 4 CHAPTER II: COST OF SERVICE ANALYSIS As noted in Chapter I, the Pasco Fire Department operates as an integrated fire and EMS department, and the station personnel respond to both types of incidents. To determine the cost of service, the Department's costs must be divided between fire and ambulance/EMS activities. To establish the cost of service of fire and ambulance/EMS services, several cost allocation steps were used. The allocation process consisted of the following steps. • Allocating the costs within the 2015 General Fund and Ambulance Fund budgets between those related to fire services and ambulance/EMS services, • Dividing the ambulance costs between availability and demand costs, and • Determining City ambulance/EMS costs versus Out of City ambulance/EMS costs. Exhibit 4 shows the framework for the overall allocation process to determine the cost of service for ambulance services. The amounts shown at each step represent the allocated costs. •:;>FCS GROUP Exhibit 4 2015 Cost of Service Framework General Fund Ambulance Fund $5,797,612 $3,815,313 Total Fire Department Costs $9,612,925 Fire Ambulance/EMS $2,578,238 $7,034,687 City Availability City Demand Out of City Cost $6,244,899 $707,657 $82,131 Page 209 of 321 City of Pasco, Washington Ambulance Cost of Service and Rate Study November, 2015 Page 5 KEY ASSUMPTIONS The first step in determining the cost of service analyzed the 2015 General Fund and Ambulance Fund budgets to determine the total costs of providing fire and EMS/ambulance services. To establish costs for these categories, the following sections discuss the assumptions and allocation factors that were used to allocate costs between fire and ambulance services and between availability and demand for In City and Out of City services. Labor Costs The City budgets for fire and suppression personnel costs in the General Fund and paramedic personnel costs in the Ambulance Fund. Total combined personnel costs were provided by City staff for each full-time position. The staff costs were allocated between fire and EMS based on the time spent responding to fire and EMS emergency calls. Based on the calculations and assumptions described below, 16% of the labor costs were allocated to fire and 84% to EMS. The time spent on fire and EMS calls was calculated by estimating the total time spent on calls and stand-by time for each activity. • The City provided time data for each engine, medic unit, or apparatus that responded to emergency calls in 2014. Under the assumption that two people are on each engine and medic unit, the total time they are out on call and are unavailable to respond to another call for service is calculated as demand time. • The remaining time is considered as stand-by or availability time, which represents the time staff is waiting and available to respond to a call for either fire or ambulance/EMS services. Any time that a firefighter, paramedic, or battalion chief is not responding to a call is considered availability time. • For other programs and resources that were not related to the station staffing, the costs were allocated to either fire or EMS depending on the program's purpose. For example, all costs related to fire prevention were allocated to fire services. Supplies, Services, and Other Costs • All administration costs were allocated based on the fire and EMS demand time assuming that the costs should be proportionate to the Department's demand time. • The supplies, services, and other costs under fire suppression, Hazmat, ARF Service, and Emergency Tech Rescue were all allocated to fire. • The supplies and services in the ambulance budget were allocated only to EMS. • The ambulance training and fire training costs were allocated to EMS and fire, respectively. • Facility costs were allocated based on square footage use for fire or ambulance/EMS and common and administrative spaces were split evenly between the two. Revenues To allocate and forecast the revenues associated with the City's ambulance/EMS services, RCW 35.21.766 requires that only revenues received through direct billing to the individual user of the ambulance service are allocated to the demand related costs. • All transport fees, mileage fees, non -transport med service fees, and Medicare and Medicaid discounts were used to offset demand cost. ':;� FCS GROUP Page 210 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Page 6 • Miscellaneous revenues and the Department of Health Grant were allocated to offset availability cost. • Based on the number of Out of City transports, the transport revenues were assumed to be non- resident and were subtracted from the budgeted In City transport revenues. The County Fire District and Contract Ambulance Services revenues were considered Out of City revenue and allocated to Out of City availability. Any positive net revenue from mutual aid transports was added back to the In City transport revenues. AMBULANCE AVAILABILITY AND DEMAND COSTS The costs listed in the ambulance/EMS category represent the costs of the City for providing ambulance services both inside City limits and outside City limits. Once these ambulance costs were identified, they were then divided between availability and demand costs. According to RCW 35.21.766, availability costs are attributable to the basic infrastructure needed to respond to a single call for service and may include dispatch, labor, training, equipment, patient care supplies, and equipment maintenance costs, while demand costs are attributable to the burden placed on the ambulance service by individual calls, such as those associated with the frequency of calls or the distance from hospitals. To determine availability and demand costs, the following assumptions and allocation factors were used. • The 2014 ratio of total time spent responding to calls compared to stand-by time for ambulance/EMS calls was used to allocate the personnel costs of responding firefighters and paramedics. This availability demand ratio was further split into City and Out of City availability and demand and resulted in 83% City availability, City 7% demand, 9% availability for Out of City, and 1% demand for Out of City. • Administrative EMS costs were all allocated to availability since they do not respond to emergency calls. • Training costs were allocated to availability since they were trained during time not spent responding to EMS calls. Based on the above assumptions, the total ambulance/EMS costs were $7,034,687 representing 73% of the total Department costs. The total City ambulance/EMS costs were 6,952,555. City availability costs were $5,595,483, while City demand costs were $707,657. Out of City availability costs were $649,416, while demand costs were $82,131. Because the Department is responding to Out of City calls usually as mutual aid, the total City costs include all Out of City availability costs, which increases the City's availability total to $6,244,899. The spreadsheets showing how costs were assigned to the availability and demand categories can be found in Appendix A. The City currently has contracts and receives payment from North Franklin County Hospital and Walla Walla #5 for their EMS services. Exhibit 5 displays the proportion of Out of City costs per jurisdiction based on percentage of incidents the City transported. The transport revenues displayed were calculated based on the proportion of transports in each jurisdiction and the overall average reimbursement per call ($393). ':;� FCS GROUP Page 211 of 321 City of Pasco, Washington Ambulance Cost of Service and Rate Study November, 2015 Page 7 Exhibit 5 2015 Estimated Out of City Cost of Service Average Cost per Transport $ 1,746 $ 1,746 Transports PerJurisdiction Kennewick North County Richland Other Walla Walla #5 Total 4 i 2014 167 49 64 112 27 419 Percentage 40% 12% 15% 27% 6% 100% North Franklin County Hospital currently pays $600 for assistance from the City, but has a combined availability and demand cost of $85,551. Walla Walla #5 is paying for more than their demand costs, but is still not fully recovering their total cost of service. The average cost per Out of City transport is $1,746 for North Franklin County Hospital and Walla Walla #5. The combined In City and Out of City availability costs are $6,244,899 and the In City demand costs are $707,657. Based on the customer class incident data of 3,579 incidents in 2014, the average In City availability and demand cost per incident is shown in Exhibit 6. The per incident cost within the City is slightly higher because the Out of City availability costs are included in the costs. The average cost per incident for In City incidents is $1,943, and currently, the average transport fee and utility rate revenue only support $952 of the cost. This is about a 49% cost recovery per incident. $2,500 $2,000 $1,500 $1,000 $500 •:;> FCS GR©UP Exhibit 6 2015 Average In City Cost per Incident $1,943 In City Cost $1,943 Revenue Sources Page 212 of 321 Kennewick North County Richland Other Walla Walla #5 Total Costs per Jurisdiction $ 291,571 $ 85,551 $ 111,740 $ 195,545 $ 47,140 $ 731,547 Availability Cost $ 258,836 $ 75,946 $ 99,195 $ 173,591 $ 41,848 $ 649,416 Demand Cost $ 32,735 $ 9,605 $ 12,545 $ 21,954 $ 5,292 $ 82,131 Revenue per Jurisdiction What they paid 600 25,000 25,600 Transport revenues 77,388 22,707 29,658 51,901 12,512 1 194,165 Net Cost of Service $ 214,183 $ 62,244 $ 82,082 $ 143,644 $ 9,628 1 $ 511,782 Average Cost per Transport $ 1,746 $ 1,746 Transports PerJurisdiction Kennewick North County Richland Other Walla Walla #5 Total 4 i 2014 167 49 64 112 27 419 Percentage 40% 12% 15% 27% 6% 100% North Franklin County Hospital currently pays $600 for assistance from the City, but has a combined availability and demand cost of $85,551. Walla Walla #5 is paying for more than their demand costs, but is still not fully recovering their total cost of service. The average cost per Out of City transport is $1,746 for North Franklin County Hospital and Walla Walla #5. The combined In City and Out of City availability costs are $6,244,899 and the In City demand costs are $707,657. Based on the customer class incident data of 3,579 incidents in 2014, the average In City availability and demand cost per incident is shown in Exhibit 6. The per incident cost within the City is slightly higher because the Out of City availability costs are included in the costs. The average cost per incident for In City incidents is $1,943, and currently, the average transport fee and utility rate revenue only support $952 of the cost. This is about a 49% cost recovery per incident. $2,500 $2,000 $1,500 $1,000 $500 •:;> FCS GR©UP Exhibit 6 2015 Average In City Cost per Incident $1,943 In City Cost $1,943 Revenue Sources Page 212 of 321 City of Pasco, Washington Ambulance Cost of Service and Rate Study November, 2015 Page 8 CHAPTER III: RATE ANALYSIS Once the availability and demand costs were identified, the next step was to determine the availability and demand rates. RCW 35.21.766 establishes the following rate policies. • Availability costs must be uniformly applied across user classifications, • Demand costs must be based on each user classification's burden on the utility, • The costs for exemptions or reductions are a general expense of the utility and are designated as an availability cost to be spread uniformly across the utility user classifications, • Medicaid eligible persons who reside in a nursing home, boarding home or adult family home, or who receive in-home services are exempt, and • Designated classes consistent with Article VIII, section 7 of the state Constitution may be exempt from or have reduced rates. CUSTOMER CLASSES To determine the rates, the total number of customers in the City also had to be identified. FCS GROUP first worked with the City to identify the various classes that the City uses to classify its current ambulance utility customers. Next, the City provided the total number of existing ambulance accounts and billing units per account classified by single family, multi -family, commercial/business, nursing homes, public, and miscellaneous. It should be noted that not all the nursing/care facilities were included in the City's existing account data. The City determined to treat each nursing home as one billing unit and keep them listed in their current billing category. Exhibit 7 shows the customer classes and the corresponding number of accounts. Since the nursing homes are billed as a single unit rather than by individual customers, we are assuming no Medicaid accounts. Exhibit 7 Number of Billing Units by Customer Class In addition to the number of billing units, the number of City EMS responses by customer class was provided by the City for 2014. Exhibit 8 shows a breakdown of the 3,579 City EMS responses based on the customer class incident data. The Medicaid calls were estimated from the total nursing home calls based on the percentage of Medicaid billing units in those facilities. ':;� FCS GROUP Page 213 of 321 Percent of Percent of Percent of Billing Medicaid Total Billing Total Billing Customer Class Regular Units Medicaid Billing Units Units Units Single Family 15,793 69% 0% 15,793 69% Mufti -Family 5,768 25% 0% 5,768 25% Commercial/Business 1,211 68 5% 0.3% 0% 0% 1,211 68 5% 0% Public Total 22,840 100% - 0% 22,840 100% In addition to the number of billing units, the number of City EMS responses by customer class was provided by the City for 2014. Exhibit 8 shows a breakdown of the 3,579 City EMS responses based on the customer class incident data. The Medicaid calls were estimated from the total nursing home calls based on the percentage of Medicaid billing units in those facilities. ':;� FCS GROUP Page 213 of 321 City of Pasco, Washington Ambulance Cost of Service and Rate Study November, 2015 Page 9 Exhibit 8 Number of Responses by Customer Class Customer Class Pasco Regular Calls Percentage of Regular Calls Pasco Medicaid Percentage of Calls Medicaid Calls Total Percentage of Total Calls Single Family 1362 39% 0% _ 1,362 38% Multi -Family 815 24% 0% 815 23% Commercial/Business 577 17% 0% 577 16% Nursing Homes 109 3% 114 100% 223 6% Public 541 16% 0% 541 15% Miscellaneous 61 2% 0% 61 21X Total 3,465 100% 114 100% 3,579 100% AVAILABILITY AND DEMAND COSTS The law requires that revenues such as ambulance charges and grants be subtracted from the revenue needed for the ambulance utility. The 2015 budget included ambulance transport fee revenues as well as fees for non -transport medical service, Medicare and Medicaid discounts, a state grant, and miscellaneous revenues. To calculate the cost that can be recovered from rates, these revenues were subtracted from the availability and demand costs as identified and discussed above in Chapter II. Because the Out of City responses are for mutual aid and not a result of contracts for services, the $649,416 calculated for Out of City availability costs is absorbed by the City. This assumption results in Out of City revenues being larger than Out of City demand costs by $137,633. These additional revenues are used to help offset the City's availability costs. Because the transport fee revenue was greater than the City's $707,657 in demand costs, there are no demand related costs and the remaining net costs of $5,790,137 are all availability costs. Exhibit 9 shows the details of this calculation. Exhibit 9 Adjusted 2015 Availability and Demand Costs Ambulance Utility Revenue Requirement Availability Demand Total Annual In City Cost $ 6,244,899 $ 707,657 $ 6,952,555 Offsetting Revenues Availability Demand Total NonTransport Med Service $ 25,000 $ 25,000 Transport Fee - Resident $ 1,475,000 $ 1,475,000 Transport Fee - NonResident $ 235,333 $ 235,333 Mileage Fees $ 150,502 $ 150,502 Medicare Discounts $ (395,000) $ (395,000) Medicaid/DSHS Discounts $ (463,000) $ (463,000) Net Out of City Revenue $ 137,633 $ 137,633 Misc Amb Discounts $ (5,000) $ (5,000) AR & Collection Interest $ 750 $ 750 Miscellaneous Revenues $ - General Fund Subsidy $ - State Grant Dept Health $ 1,200 $ 1,200 Total Revenues $ (3,050) $ 1,165,469 $ 1,162,419 Adjusted Cost $ 6,247,949 $ 457,812 $ 5,790,137 ':;% FCS GROUP Page 214 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Page 10 Based on the net ambulance utility costs of $5,790,137 and 22,840 regular billing units, the ambulance rate per unit is $253.51 a year, or $21.13 a month as shown below in Exhibit 10. This represents a 173% increase over the current rate of $93.00 a year, or $7.75 a month. Exhibit 10 Monthly Ambulance Utility Rate Comparison Rate Schedule 2015 Existing 2015 Calculated % Increase Single Family $7.75 $ 21.13 173% Multi -Family $7.75 $ 21.13 173% Commercial/Business $7.75 $ 21.13 173% Nursing Homes $7.75 $ 21.13 173% Public $7.75 $ 21.13 173% RATE COMPARISONS The City's current rate structure requires a contribution from the General Fund to support the ambulance cost of service. The rates calculated in Exhibit 10 are based on full cost recovery, meaning the ambulance utility rates along with transportation revenues will recover the total EMS cost of service without support from the General Fund. Because the rates significantly increase based on the cost of service analysis, the City has proposed a 2016 increase that is less than full cost recovery. Exhibit 11 presents the proposed rate increase for 2016 with the corresponding General Fund contribution and savings in comparison to the current budget and the combined 2016 budget. Exhibit 11 Ambulance Rate Comparisons Cost Recovery 2015 Current Cost Recovery 2015 Full Cost Recovery 2016 Total Calculated Cost 2016 Proposed Ambulance Budget* Monthly Fee $ 7.75 $ 21.13 $ 12.65 $ 12.65 Annual Fee $ 93.00 $ 253.51 $ 151.75 $ 151.75 Total Annual Cost $ 7,034,687 $ 7,034,687 $ 7,764,249 $5,660,577 Annual In City Cost $ 6,952,555 $ 6,952,555 $ 7,714,990 Revenue Ambulance Utility Fee $ 2,000,000 $ 5,790,137 $ 3,466,019 $3,466,019 Net Transportation Fees $ 1,027,835 $ 1,027,835 $ 1,310,835 $1,530,600 Miscellaneous Fees $ (3,050) $ (3,050) $ (2,950) $ (2,950) Net Out of City Revenue $ 137,633 $ 137,633 $ 170,505 Fund Balance $ 570,763 $ - $ 246,908 $ 246,908 General Fund Contribution $ 3,219,374 $ - $ 2,523,672 $ 420,000 Total Revenue $ 6,952,555 $ 6,952,555 $ 7,714,990 $5,660,577 Out of City Demand Cost $ 82,131 $ 82,131 $ 49,260 Total Annual Cost $ 7,034,687 $ 7,034,687 $ 7,764,249 $5,660,577 *Represents proposed 2016 Ambulance Fund budget In the 2015 budget, expected revenue was $3,244,550 in the Ambulance Fund. This is $570,763 lower than the budgeted expenses of $3,815,313 suggesting support from Ambulance Fund's fund ':;� FCS GROUP Page 215 of 321 City of Pasco, Washington Ambulance Cost of Service and Rate Study November, 2015 Page 11 balance. The 2016 proposed rate indicates that even with the increase in EMS costs in the 2016 budget, there will be a General Fund savings of $695,702 compared to the current budget. With a rate of $12.65 per month, 33% of total EMS costs will still be subsidized by the General Fund as an interfund contribution to the Ambulance Fund and as part of the General Fund Fire budget. RATE AND ACCOUNT IMPLEMENTATION ISSUES During our review of the account classifications and discussions with the City and Department staff, there were a number of issues that the City might want to address concerning equity in how the monthly rate is charged. These issues include the following: • According to the City, it currently exempts nursing homes from paying the monthly ambulance rate because the City says that it has exempted both Medicare and Medicaid patients. RCW 35.721.766 only provides for an exemption for persons who are Medicaid eligible and who reside in a nursing facility, assisted living facility, adult family home, or receive in-home services. The legislation does not exempt Medicare patients. Because nursing homes, assisted living, and other types of care facilities generally have a high number of calls relative to the number of people served, the City might not want to exempt all such facilities from the monthly fee. In some cities, the rate is charged for each non -Medicaid patient or client. The City should review whether such an exemption is still warranted, and if not, the City's municipal code and its definitions should be reviewed to determine whether any changes should be made to the code. • Another issue that is often discussed is how commercial, industrial, and other businesses and properties should pay and whether how the rate charged is equitable. Some considerations include the following: ■ Should a large business pay the same as a small business and a single family residence and should a property owner with several businesses on a property (e.g. a strip mall) pay the same as a property with one business on the property? ■ Should hotels and motels pay a single monthly fee like businesses or should they pay the monthly rate on per unit basis? ■ The City already makes a distinction for multi -family residences and counts each multi- family unit as a separate billing unit. Some cities have addressed these issues by charging the rate on per business basis using their business license data to help identify the businesses. Another city charges businesses based on the number of equivalent residential units which is calculated by dividing the number of employees by the average household size in the city. In a city with many hotels, the number of billing units for hotels is based on the average number of units occupied in the previous year. Any change in how the City addresses these issues can increase the number of billing units, and as a result, the rate can be lowered because the costs are spread across more billing units. These changes, however, primarily affect rates paid by businesses. ':;� FCS GROUP Page 216 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Page 12 CHAPTER IV: FIVE YEAR FORECAST As part of this study, the City wanted to identify the impacts of adding an engine company and responding to an increased number of EMS incidents over the next five years. City staff provided projected incidents for 2019 as well as the costs and response data associated with adding an engine company at Station 84. Using 2015 as the base year, the expected costs and revenues of providing ambulance/EMS services for 2016-2019 were forecasted. The following assumptions were made to create the forecast: • City incident growth is evenly spread over the next five years. • Out of City incidents will stay constant over the next five years. • Using the most recent forecast from the Washington State Economic and Revenue Forecast Council, personnel costs will inflate according to the Seattle Non-farm Annual Wage Index by an average of 3.7%. • All other costs will inflate by an average of 2.0% based on the Seattle CPI forecast from the Washington State Economic and Revenue Forecast Council. • Two customer account growth rate scenarios were analyzed: ■ Under the OFM Growth Rate scenario, single family and multi -family accounts will grow at the average housing growth over the past five years for Franklin County as determined by the Office of Financial Management (April 2015). Single family will grow at 3.1% and multi- family at 2.4%. ■ Under the 1% Growth Rate scenario used in the City's utility rate study, both single family and multi -family accounts will grow at only 1% per year. • All Out of City transport revenues are considered Non -Resident, and are calculated using the average reimbursement per call ($393). • Projected In City transport revenues are calculated assuming 27% of transports are Medicaid. • The City will pay for all Out of City availability costs. • Availability and demand costs across jurisdictions are based on their percentage of transports: Kennewick -40%, North County -12%, Richland -15%, and Other -33%. • The additional engine company at Station 84 is planned for in 2017 with a staffing complement of three captains, three firefighters and three paramedics. The City has forecasted that this additional engine company would respond to 19% of the existing incidents. • Under HB 2007 legislation, it is assumed that starting the last quarter of 2016 Medicaid reimbursements are going to increase from $168 to the same payment amount as Medicare ($431). • The collection percentage for new accounts will be equivalent to the current 95% collection rate. Given the actual EMS and fire incident numbers for 2014, projected 2015 and 2016 incident numbers, and projected incident growth for 2019, the growth was evenly spread over the forecasted years. Exhibit 12 presents the Fire Department's estimated number of incidents for each year. ':; FCS GROUP Page 217 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Page 13 Exhibit 12 Projected Incident Growth 6000 5,523 5,651 5,114 5000 4,725 4,404 4,484 4,040 4000 3,715 3000 2000 1,010 1,074 1,119 1,167 1,214 1,262 1000 0 2014 2015 2016 2017 2018 2019 LEMS —0—Fire Notal 5,778 5,906 4,564 4,644 With the additional engine company at Station 84, the distribution of incidents per station will be affected. Exhibit 13 shows the distribution of 2014 incidents per station compared to what it might be with the addition of another engine company at Station 84. The majority of Station 84's responses would be for incidents previously responded to by Station 82. Exhibit 13 Redistribution of 2014 Incidents with Station 84 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1,526 1,520 1.429 1,560 1,528 Station 81 Station 82 Station 83 Station 84 ■ Before Addition s' After Addition Of the total EMS incidents, 76% of the incidents are expected to need ambulance transportation each year, and 27% of these transports will be Medicaid customers. Beginning the last quarter of 2016 with an increase in Medicaid payments to $431, transport revenue per year starting in 2017 is expected to increase by about $250,000. Conversely, the added engine company at Station 84 in 2017 leads to a large increase in costs with the addition of personnel, supplies, and facility costs. Exhibit •:;i FCS GROUP Page 218 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Page 14 14 shows these forecasted expenditures and revenues from 2015 through 2019 assuming full cost recovery for ambulance/EMS services. The General Fund is only used to cover fire associated costs. Exhibit 14 Projected Expenditures and Revenues Based on Full Cost Recovery $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 2015 2016 2017 2018 2019 ■ EMS Cost ■ Fire Cost ■ Rate & Transport Revenues ■ General Fund Contribution To ensure full cost recovery under the assumption that the collection factor for rates is 95%, 5% of the revenues were added back into the total costs as bad debts before the rates were calculated. Therefore, the rate revenues shown above are 5% higher than actually expected assuming 100% payment, but if the City only collects 95% of the ambulance utility fees, it will still achieve full cost recovery. In comparison, the City 2016 budget projects the General Fund contribution to be 7% of the Ambulance Fund. Assuming the City will continue this level of funding, Exhibit 15 displays the forecasted expenditures and revenues with the General Fund partially subsidizing ambulance /EMS services in the Ambulance Fund. Exhibit 15 Projected Expenditures and Revenues Based on Proposed General Fund Contribution $14,000,000 -1 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 2015 2016 2017 2018 ■ EMS Cost ■ Fire Cost ■ Rate & Transport Revenues ■ General Fund Contribution 2019 ':;4 FC5 �ZRQ� Page 219 of 321 City of Pasco, Washington Ambulance Cost of Service and Rate Study November, 2015 Page 15 As previously mentioned, two rate scenarios were used to account for different growth rates. The OFM average housing growth over the past five years was 3.1% for single family and 2.4% for multi- family. A more conservative growth rate of 1% was also considered because it is the assumed growth rate for utilities in the City. With lower customer account growth, the rate per customer will increase annually. With the addition of another engine company, there is a dramatic increase in rates between 2016 and 2017. Exhibit 16 displays the forecasted monthly rates under the two growth scenarios with full cost recovery, as well as the forecasted monthly rates assuming the 2016 proposed Ambulance Fund and the General Fund contribution to the Fund. Exhibit 16 Comparison of the 2015-2019 Forecasted Monthly Rates Based on Full Cost Recovery and Based on the Proposed 2016 Ambulance Fund Budget $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 �t _ _.. 2015 2016 2017 2018 2019 � OFM Account Growth - Full Cost � 1% Account Growth - Full Cost —a-1%Account Growth - Ambulance Fund Based on 2016 Proposed Budget With the added engine company, the monthly ambulance utility rate based on full cost recovery in 2017 increases about $5 per month compared to the calculated 2016 rate and more than $19 per month than the current rate, which means that the annual cost for full cost recovery increases from the existing $93 to $266 to $322. In comparison, the proposed 2016 budget rate assumes the General Fund will subsidize the Ambulance Fund at a rate of 7% with I% account growth annually. The forecasted rates are about $10 lower each month. It should be noted that while the General Fund is only subsidizing 7% of the Ambulance Fund under this scenario, it will be subsidizing another $3,233,593 from the Fire General Fund in 2017 to pay for the full EMS cost of service of $9,354,893 with a 95% collection factor. If the City decides to fully recover all costs through the ambulance utility rates or to partially subsidize the ambulance utility as it currently does, the future forecasted rates and costs might change. With such large increases from the current rate to 2015's calculated full cost recovery rate to 2016's forecasted rate, the City might experience an increase in the percentage of non -payments from the current five percent to a higher percentage. If a higher non- payment percentage occurs, the City would have to increase its rates further to offset the higher non- payment rate. However, the City could develop a policy to recover all costs by 2019 or later and reduce the subsidy each year over the next four to five years or it could continue to subsidize a percentage of the costs with General Fund support rather than changing to a full cost recovery policy such as proposed in the 2016 Ambulance Fund budget. FCS GROUP Page 220 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Appendix A APPENDIX A: COST OF SERVICE ANALYSIS DETAILS ':;� FCS GROUP Page 221 of 321 City of Pasco, Washington November, 2015 General Fund Ambulance Cost of Service and Rate Study Appendix A-1 Prog 151 - Suppression 2015 Budget Allocation Method Fire EMS Total Availability Method Availability Demand Availability Demand Availability Demand Out of City Out of City Total Prog 150 - FD Admin 2015 Budget Allocation Method $ 412,506 _$ 2,169,324 $ 2,581,830 $ 35,092 $ 154,546 $ 219,638 $ 23,949 $ 125,943 $ 149,892 $ 1,150 $ 6,050 $ 7,200 $ 991 $ 5,209 $ 6,200 $ - $ - $ - $ 6,623 $ 34,829 $ 41,452 $ 26,792 $ 140,895 $ 167,687 $ 15,212 $ 79,996 $ 95,208 $ 87,369 $ 459,463 $ 546,832 $ 6,924 $ 36,412 $ 43,336 $ 12,950 $ - $ 12,950 $ 21,744 $ - $ 21,744 $ 25,866 $ - $ 25,866 $ 3,928 $ - $ 3,928 Fire EMS Total Availability Method In City In City Out of City Out of City Total Wages $ 84,560 Allocated Time $ 13,510 $ 71,050 $ 84,560 All to Availability $ 63,661 $ - $ 7,389 $ - $ 71,050 Wages - Overtime $ 503 Allocated Time $ 80 $ 423 $ 503 All to Availability $ 379 $ - $ 44 _$ - $ 423 Social Security $ 2,751 Allocated Time $ 440 $ 2,311 $ 2,751 All to Availability $ 2,071 $ - $ 240 $ - $ 2,311 State Retirement $ 2,607 Allocated Time $ 417 $ 2,190 $ 2,607 All to Availability $ 1,963 $ - $ 228 $ - $ 2,190 Life Vision Worker Comp $ 360 Allocated Time $ 58 $ 302 $ 360 Al to Availability $ 271 $ - $ 31 $ - $ 302 I/F Medical Vision Prem $ 13,338 Allocated Time $ 2,131 $ 11,207 $ 13,338 All to Availability $ 10,042 $ - $ 1,165 $ - $ 11,207 I/F Dental Premium $ 1,252 Allocated Time $ 200 $ 1,052 $ 1,252 All to Availability $ 943 $_ $ 109 $ $ 1,052 O&M Supplies $ 1,000 Allocated Time $ 160 $ 840 $ 1,000 All to Availability $ 753 $ $ 87 $ - $ 840 Clothing Uniforms $ 500 Allocated Time $ 80 $ 420 $ 500 All to Availability $ 376 $ - _$ 44 $ - _$ 420 Dues Subscription Memberships $ 4,200 Allocated Time $ 671 $ 3,529 $ 4,200 Al to Availability $ 3,162 $ - $ 367 $ - $ 3,529 Train Registration Tuition $ 500 Allocated Time $ 80 $ 420 $ 500 All to Availability $ 376 $ - $ 44 $ - $ 420 Lodging Meals Miles Airfare $ 1,000Allocated Time $ 160 $ 840 $ 1,000 All to Availability $ 753$ - $ 87 $ - $ 840 Professional Services $ 884 .Allocated Time $ 141 _$ 743 $ 884 All to Availability $ 666 _$ - $ 77 $ - $ 743 R&M Service Contracts $ 250 Allocated Time $ 40 $ 210 $ 250 All to Availability 185 $ - $ 22 $ - $ 210 Vehicle Equip Other Rentals $ 5,100 Allocated Time $ 815 $ 4,285 $ 5,100 All to Availability _$ $ 3,840 $ - $ 446 $ - $ 4,285 $ 1,080 Allocated Time $ 173 $ 907 $ 1,080 All to Availability Telephone Cell Pagers $ 813 $ - $ 94 $ - $ 907 Internet Web Communications $ 2,925 Allocated Time $ 467 $ 2,458 $ 2,925 Al to Availability $ 2,2021 $ - $ 256 $ - $ 2,458 $ 810 Allocated Time $ 129 $ 681 $ 810 All to Availability Insurance Premiums &Claims $ 610$ - $ 71 $ - $ 681 I/F ER Replacement $ 1,995 Allocated Time $ 319 $ 1,676 $ 1,995 All to Availability $ 1,502 $ - $ 174 $ $ 1,676 I/F ER O&M $ 2,308 Allocated Time $ 369 $ $ 2,308 All to Availability 1,738 $ - 202_$ - $ 1,939 I/F ER Fuel $ 985 Allocated Time $ 157 _1,939 $ 828 $ 985 Ali to Availability _$ $ 742 $ - _$ $ 86 $ - $ 828 $ FD Admin Budget Total: $ 128,908 $ 20,596 $ 108,312 $ 128,908 $ 97,048 $ - $ 11,264 $ - $ 108,312 Prog 151 - Suppression 2015 Budget Allocation Method Fire EMS Total Availability Method Availability In City Demand In City Availability Demand Out of City Out of City Total Wages Wages - Overtime Holiday Pay Call Out Pay Upgrade pay Reimb Wages Jury Duty L&I Social Security State Retirement Life Vision Worker Comp I/F Medical Vision Prem I/F Dental Premium O&M Supplies Clothing Uniforms Strucl Personal Protect Equip Ballistics Person Protect Equip Wildland Protect Clothing Tools Equip Furn <$5,000 City Mgr Discretionary Items Laundry Laundry Person Protection Medical Services Professional Services Other Contract Services R&M Service Contracts Telephone Cell Pagers Internet Web Communications Insurance Premiums & Claims I/F ER Replacement I/F ER O&M I/F ER Fuel Wages -Battalion Chief $ 2,581,830 .Allocated Time $ 219,638 Allocated Time $ 149,892 Allocated Time $ 7,200 Allocated Time $ 6,200 Allocated Time Allocated Time $ 41,452 .Allocated Time $ 167,687 .Allocated Time $ 95,208 Allocated Time $ 546,832 :Allocated Time $ 43,336 Allocated Time $ 12,950 All to Fire $ 21,744 .All to Fire $ 25,866 All to Fire $ 3,928 All to Fire $ 412,506 _$ 2,169,324 $ 2,581,830 $ 35,092 $ 154,546 $ 219,638 $ 23,949 $ 125,943 $ 149,892 $ 1,150 $ 6,050 $ 7,200 $ 991 $ 5,209 $ 6,200 $ - $ - $ - $ 6,623 $ 34,829 $ 41,452 $ 26,792 $ 140,895 $ 167,687 $ 15,212 $ 79,996 $ 95,208 $ 87,369 $ 459,463 $ 546,832 $ 6,924 $ 36,412 $ 43,336 $ 12,950 $ - $ 12,950 $ 21,744 $ - $ 21,744 $ 25,866 $ - $ 25,866 $ 3,928 $ - $ 3,928 Availability Demand Ratio $ 1,793,689 Availability Demand Ratio $ 152,590 Availability Demand Ratio $ 104,135 Availability Demand Ratio $ 5,002 Availability Demand Ratio $ 4,307 _$ - Availability Demand Ratio $ 28,795 Availability Demand Ratio _$ 116,498 Availability Demand Ratio $ 66,144 Availability Demand Ratio $ 379,904 Availability Demand Ratio $ 30,1_07 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ _ - 5 _ - $ - $150,044 $ 208,177 $ 17,414 $ 12,764 $ 17,710 $ 1,451 $ 8,711 $ 12,086 $ 1,011 $ 418 $ 581 $ 49 $ 360 $ 500 $ 42 $ - $ - $ _ $ 2,409 $ 3,342$ 280 $ 9,745 $ 13,521 $ 1,131 $ 5,533 $ 7,677 $ 642 $ 31,779 $ 44,092 $ 3,658 $ 2,518 $ 3,494 $ 292 $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,169,324 $ 184,546 $ 125,943 _ $ 6,050 $ 5,209 $ - 34,829 _$ 140,895 _$ $ 79,996 $ 459,463 $ 36,412 $ - $ - $ - $ - $ 4,378 All to Fire $ 4,378 $ - $ 4,378 $ $ 30,529 All to Fire $ 30,529 $ - $ 30,529 $ - $ 30,000 All to Fire $ 30,000 $ - $ 30,000 $ $ 10,000 All to Fire $ 10,000 $ - $ 10,000 $ - $ 10,000 All to Fine $ 7,500 .All to Fire $ 10,000 $ - $ 10,000 $ - $ 7,500 $ - $ 7,500 $ - $ 7,350 All to Fire $ 7,350 $ 13,680 All to Fire $ 13,680 $ 16,550 .All to Fire $ 16,550 $ 6,570 All to Fire $ 6,570 $ 2,700 All to Fire $ 2,700 $ 24,505 All to Fin, $ 24,505 $ 239,440 ,Allocated Time - Engines $ 71,577 $ 121,861 Allocated Time - Engines $ 36,429 $ - $ 7,350 $ - $ - $ 13,680 $ $ - $ 16,550 $ - $ - $ 6,570 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Availability Demand Ratio $ 135,796 $ 11,610 $ 16,109 $ 1,348 _$ $ - $ 2,700 $ - $ - $ 24,505 $ - $ 167,863 $ 239,440 $ 167,863 $ 85,432 85,432 $ 121,861 Availability Demand Ratio $ 70,639 $ 5,909 $ 8,198 $ 686 _$ $ 33,720 Allocated Time - Engines $ 10,080 $ 23,640 $ 33,720 $ 391,440 Allocated Time - Battalion Chief $ 251,588 $ 139,852 $ 391,440 Availability Demand Ratio $ 19,546 $ 1,635 $ 2,269 $ 190 $ 23,640 Availability Demand Ratio $ 115,636 $ 9,673 $ 13,421 $ 1,123 $ 139,852 Suppression Budget Total: $ 4,873,986 $1,214,531 $3,659,455 1 $4,873,986 1 $ 3,025,792 $253,111 $ 351,176 $ 29,376 1 $3,659,455 Prog 153 - Fire Prev/Investig 2015 Budget Allocation Method Fire EMS Total Availability Method Availability In City Demand In City Availability Demand Out of City Out of City Total Wages Wages - Overtime Social Security Life Vision Worker Comp Forms Stationary Bus Cards O&M Supplies Train Registration Tuition Lodging Meals Miles Airfare Advertising Insurance Premiums & Claims $ 18,720 All to Fire $ 6,002 All to Fire $ 15,720 $ 6,002 $ - $ $ - $ 15,720 6,002 $ - $ - $ - $ - $ $ - $ - $ - $ - $ - $ 1,891 All to Fire $ 1,891 $ - $ 1,891 $ 86 ,All to Fire $ 86 $ - $ 86 $ 200 All to Film $ _200 $ - $ 200 $ 500 All to Fire $ 500 $ - $ 500 $ 3,750 .All to Fire $ 3,750 $ - $ 3,750 $ 3,000 All to Fire $ 3,000 $ - $ 3,000 $ 1,800 .AII to Fire $ 1,800 $ - $ 1,800 $ 135 All to Fire $ 135 $ - $ 135 $ - $ $ - $- $ - $ $ - $ - $ - $ $ - $ - $ - $ - _$ - $ - $ - $ - $ $ - $ - $ $ $ - $ - $ - $ - $ - $ - $ - $ - $ - - $ - $ - _$ $ - $ - $ - $ - Fire Prev/Investig Budget Total: $ 36,084 $ 36,084 $ - $ 36,084 $ - $ - $ - $ - $ -4*4 FCS GROUP Page 222 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Appendix A-2 Prog 156 - FD Facilities 2015 Budget Allocation Method Fire EMS Total Availability Method Availability In City Availability Demand Availability Demand $ 2,000 Square Feet $ 4,175 Square Feet $ 6,700 Square Feet $ 7,500 Square Feet $ 16,000 square Feet $ 6,000 Square Feet $ 26,642 Square Feet $ 2,750 Square Feet $ 16,000 squareFeet $ 7,000 .Square. Feet $ 4,000 Square Feet $ 7,000 Square Feet $ 5,640 .Square Feet Prog 155 - FD Train EE 2015 Budget. Allocation Method 2,000 Fire EMS $ $ $ Total Availability Method In City In City Out of City Out of City Total Wages $ 104,214 All to Fire $ 104,214 $ - $ 104,214 $ - $ - $ - $ - $ - $ 30,994 All to Fire $ 30,994 $ - $ _ 30,994 $ - $ - $ - $ - $ - Wages - Overtime Call Out Pay $ 360 All to Fire $ 360 $ - $ 360 $ - $ - $ - $ - $ Social Security $ 1,961 All to Fire $ 1,961 $ - $ 1,951 $ - $ - $ - $ - $ - State Retirement $ 7,090 All to Fire $ 7,090 $ - $ 7,090 $ - $ - $ - $ - $ - Life Vision Worker Comp $ 3,012 .All to Fire $ 3,012 $ - $ 3,012 $ $ - $ - $ - $ - $ 15,848 All to Fire $ 15,848 $ - $ 15,848 $ - $ - $ - $ - $ - I/F Medical Vision Prem I/F Dental Premium $ 1,256 All to Fire _$ 1,256 $ - $ 1,256 $ - $ - $ - $ - $ O&M Supplies $ 2,140 .All to Fire $ 2,140 $ - $ 2,140 $ - $ - $ - $ - $ - Grant & Other Reimb Items $ 9,788 All to Fire $ 9,788 $ - $ 9,788 $ - $ - $ - $ - $ Clothing Uniforms $ 800 All to Fire $ 800 $ - $ 800 $ - $ - $ - $ - $ - Tools Equip Furn <$5,000 $ 5,725 All to Fire $ 5,725 _$ - $ 5,725 $ - $ - $ - $ - $ Train Registration Tuition $ 20,875 All to Fire $ 20,87,$ - $ 20,875 $ - $ - $ - $ - $ - Lodging Meals Miles Airfare $ 10,000 All to Fire $ 10,000 $ - $ 10,000 $ - $ - $ - $ - $ - Professional Services $ 3,000 All to Fire $ 3,000 $ - $ 3,000 $ - $ - $ - $ - $ R&M Service Contracts $ 1,400 All to Fire $ 1,400 $ - $ 1,400 $ - $ - $ - $ - $ - Facility Rentals $ 5,200 All to Fire $ 5,200 $ - $ 5,200 $ _ - $ - $ - $ - $ - Insurance Premiums & Claims $ 740 All to Fire $ 740 $ - $ 740 $ - $ -. $ - $ - $ - I/F ER Replacement $ 1,910 All to Fire $ 1,910 $ - $ 1,910 $ - $ - $ - $ - $ - I/F ER O&M $ 5,478 All to Fire $ 5,478 $ - $ 5,478 $ - $ - $ - $ - $ - I/F ER Fuel $ 1,680 All to Fire $ 1,680 $ - $ 1,680 $ - $ - $ - $ - $ - $ $ FD Train EE Budget Total: $ 233,471 $ 233,471 $ - $ 233,471 $ - $ - $ $ - $ Prog 156 - FD Facilities 2015 Budget Allocation Method Fire EMS Total Availability Method Availability In City Demand Availability Demand In City Out of City Out of City Total Office Janitorial Supplies O&M Supplies Tools Equip Furn <$5,000 Laundry Professional Services R&M Service Contracts R&M Other Services Water (City - Non Tax) Electricity Natural Gas Garbage Waste Disposal Insurance Premiums & Claims I/F Facilities Services $ 2,000 Square Feet $ 4,175 Square Feet $ 6,700 Square Feet $ 7,500 Square Feet $ 16,000 square Feet $ 6,000 Square Feet $ 26,642 Square Feet $ 2,750 Square Feet $ 16,000 squareFeet $ 7,000 .Square. Feet $ 4,000 Square Feet $ 7,000 Square Feet $ 5,640 .Square Feet $ 1,194 $ 806 $ 2,000 Ail to Availability All to Availability All to Availability Al to Availability All to Availability All to Availability $ 722 $ 1,507 $ 2,419 $ $ $ - $ -. $ - $ 84 $ - 175 $ - 281 $ - $ 806 $ 2,493 $ $ 4,175 $ 1,682 _1,682 $ 4,001 $ 2,699 $ 6,700 $ 4,479 $ 3,021 $ 7,500 $ 9,554 $ 6,446 $ 16,000 $ 3,583 $ 2,417 $ 6,000 $ 15,909 $ 10,733 $ 26,642 $ 1,642 $ 1,108 $ 2,750 $ 9,554 $ 6,446 $ 16,000 $ 2,699 $ 2,707 $ - $ 314 $ - $_5,776 $ - $ 670 $ $ 2,166 $ - $ 251 $ - $ 3,021 $ 6,446 $ 2,417 $ 10,733 All to Availability $ 9,617 $ - $ 1,116 $ - All to Availability $ 993 $ - $ 115 $ - $ 1,108 Al to Availability All to Availability AII to Availability $ 5,776 $ - $ 670 $ - $ 2,527 $ $ 293 $ $ 1,444 $ - $ 168 1 $ - $ 6,446 $ 2,820 $ 4,180 $ 2,820 $ 7,000 $ 2,389 $ 1,611 $ 4,000 $ 4,180 $ 2,820 $ 7,000 $ 3,368 $ 2,272 $ 5,640 $ 1,611 All to Availability $ 2,527 $ - $ 293 $ -_ $ 2,036 $ $ 236 $ - $ 2,820 All to Availability $ 2,272 $ $ - $ 95 $ FD Facilities Budget Total: $ 111,407 $ 66,525 $ 44,882 $ 111,407 $ 29,987 $ 40,215 $ - $ 4,667 $ - $ 44,882 Prog 157 - Hazmat 2015 Budget Allocation Method Fire EMS Total Availability Availability Method In City Demand In City Availability Out of City Demand Out of City Total Wages - Overtime Social Security State Retirement Life Vision Worker Comp I/F Medical Vision Prem I/F Dental Premium O&M Supplies Train Registration Tuition Lodging Meals Miles Airfare Organizational Services Insurance Premiums & Claims $ 8,228 All to Fire $ 8,228 $ - $ 8,228 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 5 - $ $ - $ - $ - $ 119 All to Fire $ 119 $ - $ 119 $ - $ $ - $ - $ 431 All to Fire $ 431 $ - $ 431 $ 240 All to Fire $ 240 $ - $ 240 $ 1,262 All to Fire $ 1,262 $ - $ 1,262 $ 100 All to Fire $ 100 _$ - $ 100 $ 2,500 All to Fire $ 2,500 $ - $ 2,500 $ 1,600 All to Fire $ 1,600 $ - $ 1,600 $ 1,000 All to Fire $ 1,000 $ - $ 1,000 $ 5,250 All to Fire $ 5,250 $ - $ 5,250 $ 110 All to Fire $ 110 $ - $ 110 $ $ $ $ $ $ $ $ $ $ $ $ Hazmat Budget Total: $ 20,840 $ 20,840 $ - $ 20,840 $ • $ $ - $ - $ Prog 158 - Emerg Tech Rescue 2015 Budget Allocation Method Fire EMS Total Availability Availability Method In C' Demand In City Availability Out of City Demand Out of City Total Wages - Overtime Social Security State Retirement Life Vision Worker Comp I/F Medical Vision Prem I/F Dental Premium O&M Supplies Tools Equip Furn <$5,000 Train Registration Tuition Lodging Meals Miles Airfare Insurance Premiums & Claims $ 13,487 All to Fire $ 13,487 $ 196 All to Fire $ 196 $ 705 All to Fire $ 705 $ 405 All to Fire $ 405 $ 2,130AII to Fire $ 2_,130 $ 169 AII to Fire $ 169 $ 500 All to Fire $ 500 $ 9,300 All to Fire $ 9,300 $ 2,000 All to Fire $ 2,000 $ 1,000 All to Fire $ 11000 $ 95 All to Fire $ 95 $ $ - $ - $ 13,487 196 $ - $ - $ - $ - $ $ - $ $ - $ - $ - $ - $ $ - $ 705 $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ - $ 405 $ - $ $ - $ 2,130 $ - $ - - $ 169 $ - $ - _$ $ - $ 500 r$ - $ - $ _ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,300 $ - $ - $ $ - $ 2,000 $ - $ - $ $ - $ 11000_ $ - $ - $ - $ - $ $ - $ 95 $ Emerg Tech Rescue Budget Total: $ 29,987 $ 29,987 $ - $ 29,987 $ - $ - $ - $ - $ -4*4 FCS GROLT�' Page 223 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Appendix A-3 Pro 159 -ARF Service 2015 Budget Allocation Method Availability Demand Availability Method In City In City Fire EMS Other Mach Equip > $5,000 Total Availabilit Method Availability In Cit Demand Availability Demand In Cit Out of City Out of City Total Clothing Uniforms Struct Personal Protect Equip Tools Equip Furn <$5,000 Laundry Person Protection Miscellaneous Services Telephone Cell Pagers $ 3,750 All to Fire $ 10,650 All to Fire $ 250 All to Fire $ 1,050 All to Fire $ 3,025 All to Fire $ 600 All to Fire $ $ $ $ $ $ 3,750 10,650 250 1,050 3,025 600 $ - $ 3,750 _ $ - $ - $ - $ - $ - $ - $ - $ - $ - $- $ - $ - _ $ - $ - $ - $- $ - $ -_ $ - _$ - F ' $ - $ - $ - $ - $ $ $ $ - $ $ - $ 10_,650 $ - $ 250 $ - $ 1,050 $ - $ 3,025 $ - $ 600 $ ARF Service Budget Total: $ 19,325 $ 19,325 $ - $ 19,325 $ - $ - $ - $ - $ Prog 160 - ARF Train 2015 Budget Allocation Method Availability Demand Availability Method In City In City Fire EMS Other Mach Equip > $5,000 Total Availability Availability Method In City Demand In City Availability Demand �OutofCity Out of City Total Wages Wages - Overtime Holiday Pay Social Security State Retirement Life Vision Worker Comp I/F Medical Vision Prem I/F Dental Premium O&M Supplies Dues Subscription Memberships Train Registration Tuition Lodging Meals Miles Airfare Insurance Premiums & Claims $ 204,360 All to Fire $ 10,661 .All to Fire $ 10,374 .All to Fire $ 3,269 All to Fire $ 11,247 All to Fire $ 8,677 All to Fire $ $ $ $ $ $ 204,360 $ 10,661 $ 10,374 $ 3,269 $ 11,247 $ 8,877 5 - $ - $ - $ - $ - $ - $ 204,360 10,661 10,374 3,269 11,247 8,877 $ - $ - $ - $ - $ - $ - 1 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ $ - $ - $ - $ - $ - $ - $ - $ $ $ - $ - $ - $ $ - $ - $ $ - $ - $ _ $ - $ $ -_ $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 49,449 All to Fire $ 49,449 $ - $ 49,449 $ 3,886 All to Fire $ 3,886 $ 600 All to Fire $ 800 $ 200 All to Fire $ 200 $ - $ 3,886 $ - $ 800 $ - $ 200 $ 29,400 All to Fire $ 29,400 $ 3,500 All to Fire $ 3,500 [$ - $ 29,400 1 $ - $ 3,500 $ 60 All to Fire $ 60 $ - $ 60 ARF Train Budget Total: $ 336,083 $ 336,083 $ - $ 336,083 $ - $ - $ - $ - $ Prog 620 - Capital Fire/Ambulance 2015 Budget Allocation Method Fire EMS Total Availability Demand Availability Method In City In City Availability Demand Out of City Out of C'y Total Other Mach Equip > $5,000 $ 7,521 Allocated T- $ 1,202 $ 6,319 $ 7,521 Availability Demand Ratio $ 5,225 $ 437 $ 606 $ 51 $ 6,319 $ - S Capital Fire/ Ambulance Budget Total: $ 7,521 $ 1,202 $ 6,319 $ 7,521 $ 5,225 $ 437 $ 606 $ 51 $ 6,319 General Fund Budget Grand Total 1 $ 5,797,612 $1,978,643 $3,818,969 1 $5,797,612 1 $ 3,168,281 $253,548 1 $ 367,713 $ 29,427 $3,818,969 ':.i FCS GR��F Page 224 of 321 City of Pasco, Washington November, 2015 Ambulance Fund Ambulance Cost of Service and Rate Study Appendix A-4 Prog 400 - Amb Admin 2015 Budget Allocation Method Fire EMS Total Availability Method Availability In City Demand InAvailability City Demand Out of City Out of City Total Wages _ Wages - Overtime Social Security State Retirement Life Vision Worker Comp I/F Medical Vision Prem I/F Dental Premium O&M Supplies Clothing Uniforms Dues Subscription Memberships Train Registration Tuifion Lodging Meals Miles Airfare Professional Services Vehicle Equip Other Rentals Telephone Cell Pagers Internet Web Communications Insurance Premiums & Claims I/F ER Replacement I/F ER O&M I/F ER Fuel $ 84,560 Allocated Time $ 503 Allocated Time $ 2,751 Allocated Time $ 2,606 Allocated Time $ 360 Allocated Mme $ 13,336 Allocated Time $ 1,252 Allocated Time $ 1,500 Allocated Time $ 500 Allocated Time $ 625 Allocated Time $ 1,000 Allocated Time $ 1,500 Allocated Time $ 250 Allocated Time _ $ 3,000 Allocated Time $ 2,160 Allocated Time $ 2,925 Allocated Time $ 530 Allocated Time $ 5,715 Allocated Time $ 2,607 Allocated Time $ 1,880 Allocated Time. $ 13,510 $ 71,050 $ 84,560 All to Availability $ 63,661 $ - $ $ 379 $ - $ $ 2,071 $ - $ $ 1,962 $ - $ $ 271 _$ - $ $ 10,040 $ - $ $ 943 $ - $ $ 1,129 $ - $ $ 376 $ - $ $ 471 $ - $ $ 753$ - $ $ 1,129 $ - $ 188 $ - $ $ 2,259 $ - $ $ 1,626 $ - $ $ 2,202 $ - $ $ 399 $ - $ $ 4,303 $ - $ $ 1,963 $ - $ $ 1,415 $ - $ 7,389 $ _ _ _44 $ _ 240 $ 228 $ - 31 $ 1,165 $ - 109 _$ - 131 $ - 44 $ 55 $ 87 $ - 131 $ - 22 $ - 262 $ 189 $ 256 $ 46 $ - 499 $ - 228 $ - 164 $ - 71,050 423 2,311 2,190 302 11,205 1,052 1,260_ 420 525 840 1,260 210 _ 2,521 1,815 2,458 445 4,802 2,190 _ 1,580 $ 80 $ 423 $ 503 2,751 All to Availability MI to Availability $ 440 $ 2,311 $ 416 21190 _$ $ 2,606 All to Availability $ 58 _$ $ 302 $ 360 All to Availability $ 2131T$ 11,205 $ 13,336 All to Availability $ 200 $ 1,052 $ 1,252 All to Availability $ 240 $ 1,260_ $ 80 $ 420_ $ 1o0 $ 525_ $ 160 $ 840 $ 1,500 All to Availability $ 500 NI to Availability $ 625 All to Availability $ 1,000 NI to Availability $ 240 $ 1,260 $ 1,500 250 All to Availability All to Availability$ $ 40 $ 210 $ 479 $ 2,521 _$ $ 3,000 All to Availability $ 345 $ 1,815 $ 2,160 All to Availability $ 467 $ 2,458 $ 2,925 All to Availability $ 85 $ 445 $ 530 Al to Availability $ 913 $ 4,802 $ 5,715 All to Availability $ 417 $ 2,190 $ 2,607 NI to Availability $ 300 $ 1,580 $ 1,880 All to Availability $ - $i $ 2,995,815 $ 3,508,685 Amb Admin Budget Total: $ 129,560 $ 20,700 $ 108,860 $ 129,560 $ 52 $ 97,539 $ - $ 11,320 $ Frog 402 Ambulance Services 2015 Budget Allocation Method Fire EMS Total Availability Method Availability In Demand In City City Availability Demand Out of City Out of City Total Wages Wages - Overtime Holiday Pay Call Out Pay Upgrade Pay Social Security State Retirement Life Vision Worker Comp I/F Medical Vision Prem I/F Dental Premium O&M Supplies Medical Supplies Grant & Other Reimb Items Clothing Uniforms Struct Personal Protect Equip Ballistics Person Protect Equip Wildland Protect Clothing Tools Equip Furn <$5,000 Laundry Laundry Person Protection Medical Services Organizational Services Professional Services Otter Contract Services R&M Service Contracts R&M Other Services Telephone Cell Pagers Internet Web Communications Insurance Premiums & Claims State Taxes Bad Debt Expense I/F Admin Services I/F ER Replacement I/F ER O&M I/F ER Fuel Tools Equip Furn > $5,000 Wages - Medical Officer $ 1,441,541 Allocated Time $ 155,474 Allocated Time $ 73,823 Allocated Time $ 2,430 Allocated Time $ 1,200 Allocated Time $ 23,094 Allocated Time $ 85,700 Allocated Time $ 50,680 Allocated Time $ 282,090 Allocated Time $ 22,367 Allocated Time $ 15,750 All To EMS $ 70,000 All To EMS $ 1,400 Allocated Time. $ 13,519 Allocated Time $ 12,732 All to Fire $ 3,928 All to Fire $ 3,688 All to Fire $ 26,620 Allocated Time $ 10,000 Allocated Time $ 7,000 Allocated Time $ 7,500 Allocated Time $ 54,720 Allocated Time $ 5,330 Allocated Time $ 54,720 Allocated Time $ 9,100 Allocated Time $ 9,950 Allocated Mme $ 2,370 Allocated Time $ 5,220 Allocated Time $ 15,443 Allocated Time $ 42,000 Allocated Time $ 210,000 All To EMS $ 341,830 Allocated Time $ 207,240 Allocated Time - Ambulance $ 88,429 Allocated Time - Ambulance $ 29,390 Allocated Time -Ambulance All To EMS $ 122,407 Allocated Time - Medical officer $ 230,319 $ 24,841 $ 11,795 $ 1,211,222 $ 1,441,541 Availability Demand Ratio $ 130,633 $ 155,474 Availability Demand Ratio $ 62,028 $ 73,823 Availability Demand Ratio $ 1,_001,490 $ 83,776 $ 108,013 $ 9,035 $ 51,287 $ 4,290 $ 1,688 $ 141 $ 834 $ 70 $ 16,044 $ 1,342 $ 59,539 $ 4,980 $ 35,209 $ 2,945 $ 195,978 $ 16,394 $ 15,539 $ 1,300 $ 14,112 $ - $ - $ 62,721 $ 1,054 $- $ 116,234 $ $ 12,536 $ $ 5,952 $ $ 196 $ $ 97 $ $ 1,862 $ $ 6,910 $ $ 4,086 $ $ 22,745 $ $ 1,803 $ $ 1,638 $ $ - $ $ 122 $ 9,723 1,049 498 16 8 156 578 342 1,903 151 - 7,279 1,211,222 130,633 62,028 2,042 _ 11008 19,404 72,007 42,583 237,020 18,793 15,750_ 70,000 1,176 $ 388 $ 2,042 $ 2,430 Availability Demand Ratio $ 192 _ $ 1,008 $ 1,200 Availability Demand Ratio $ 3,690 $ 19,404 $ 23,094 Availability Demand Ratio $ 13,693 $ 72,007 $ 85,700 Availability Demand Ratio _ $ 8,097 $ 42,583 $ 50,680 Availability Demand Ratio $ 45,070 $ 237,020 $ 282,090 Availability Demand Ratio $ 3,574 $ 18,793 $ 22,367 Availability Demand Ratio $ - $ 15,7_50 $ 15,750 AN to Availability $ - $ 70,000 $ 70,000 All to Demand _ $ 224 $ 1,176 $ 1,400 All to Availability $ 2,160__$ 11,359 $ 13,519 All to Availability $ 10,178 $ _ $ 1,181 _$ $ - 5 _ - $ - $ $ - $ - $ - $ $ - $ - $ - $ $ 18,494 $ 1,547 $ 2,146 $ 180 $ 7,529 $ - $ 874 $ $ 5,270 $ - $ 612 $ $ 5,646 $ - $ 655 $ $ 41,196. $ - $ 4_,781 _$ $ 4,013 $ - $ 466 $ $ 41,196 $ $ 4,781 $ $ 6,851 $ - $ 795 $ $ 7,491 $ - $ 869 $ $ 1,784 $ - $ 207 $ - $ 3,930 $ - $ 456 $ - $ - $ 11,626 $ - $ 1,349 $ - $ 31,620 $ - $ 3,670 $ - $ 188,162 $ - $ 21,838 $ 257,347 $ $ 29,868 $ $ 167,4_40 $ _ $ 19,433 $ 1 $ 71,446 $ $ 8,292 $ $ - $ 23,746 $ $ 2,756 $ - $ - $ - $ _ 11,359 22,367 8,402 5,882 6,302 45,977 4,478 45,977 7,646 8,360_ 1,991 4,386 12,976 35,290 210,000 _ 287,215 186,873 79,739 26,502 $ 12,732 $ - $ 12,732 $ 3,928 $ - $ 3,928 $ 3,688 $ - $ 3,688 $ 4,253 $ 22,367 $ 26,620 Availability Demand Ratio $ 1,598 $ 8,402 $ 10,000 All to Availability $ 1,118 $ 5,882 $ 7,000 All to Availability $ 1,198 $ 6,302 $ 7,500 All to Availability $ 8,743 $ 45,977 $ 54,720 All to Availability $ 852 $ 4,478 $ 5,330 Al to Availability $ 8,743 $ 45,977 $ 54,720 All to Availability $ 1,454 $ 7,646 $ 9,100 All to AvallabiNy $ 1,590 $ 8,360 9,950 All to Availability _$ $ 379 $ 1,991 $ 2,370 All to Availability $ 834 $ 4,386 _$ 5,220 All to Availability $ 2,467 $ 12,976 15,443 All to Demand _$ $ 6,710 $ 35,290 $ 42,000 All to Demand $ - $ 210,000 $ 210,000 At to Demand $ 54,615 $ 287,215 $ 341,830 All to Availability 20,367 $ 186,873 $ 207,240 All to Availability _$ $ 8,690 $ 79,739 $ 88,429 All to A:vailabifity $ 2,888 $ 26,502 $ 29,390 All to Demand $ - $ - $ - All to Availability $ 21,981 $ 100,426 $ 122,407 Availability Demand Ratio $ 83,036 $ 6,946 $ 9,637 $ 806 _ 100,425 $ 500 $ 500 All to Availability Ambulance Services Budget Total: $ 3,508,685 $ 512,870 $ 2,995,815 $ 3,508,685 $ 2,233,635 $ 450,641 $ 259,237 $ 52,302 $ 2,995,815 Pro 404 - Amb Training2015 Budget Allocation Method Fire EMS Availability In Total AvailabilityMethod Cit Demand In City Availability Demand Out of City Out of City Total Wages - Overtime Social Security _ State Retirement Life Vision Worker Comp I/F Medical Vision Prem I/F Dental Premium O&M Supplies Tools Equip <$5,000 Train Registration Tuition Lodging Meals Miles Airfare Professional Services R&M Other Services $ 16,528 All To EMS $ 240 All To EMS $ 865 All To EMS $ 474 All To EMS $ 2,496 All To EMS $ 198 All To EMS $ 1,500 All To EMS $ 3,000 All To EMS $ 8,900 All To EMS $ 2,000 All To EMS $ 500 All To EMS $ 500 All To EMS $ - $ 16,528 $ 16,528 Availability Demand Ratio $ 240 All to Availability $ 13,666 $ 1,_143 $ 1,586 133 16,528 $ - $ 240 $ 215 $ $ 25 _$ $ - 240 $ - $ 865 $ 474 $ 2,496 $ 865 Al to Availability $ 775 _ $ $ 90 $ 865 $ - $ 474 All to Availability $ 425 $ - $ 49 - 474 $ - $ Nl to Availabil' $ 2,236 $ - $ 260 _$ $ 2,496 $ - $ 198 _2,496 $ 198 All to Availability $ 177 $ - $ 21 $ 198 $ - $ 1,500 $ 1,500 NI to Availability $ 1,344 $ - $ 156 $ 1,500 $ - $ 3,000 $ 3,000 Al to Availability $ 2,688 $ - $ 312 $ 3,000 $ - $ 8,900 $ 8,900 All to Availability $ 7,974 $ - $ 926 $ 8,900 $ - $ 2,000 $ 2,000 All to Availability $ 1,792 $ - $ 208 $ 2,000 $ - $ 500 $ 500 All to Availability $ 448 $ - $ 52 $ Soo $ - $ 500 $ 500 All to Availability $ 448 $ - $ 52 $ 500 Amb TrainingBudget Total: $ 37,201 $ - $ 37,201 $ 37,201 $ 32,189 $ 1,143 $ 3,736 $ 133 $ 37,201 ':;i FCS GROUP Page 225 of 321 City of Pasco, Washington November, 2015 Ambulance Cost of Service and Rate Study Appendix A-5 Prog 406 - Amb Facilities 2015 Budget Allocation Method Fire EMS Total Availability Method Availability In Demand In City City Availability Demand Out of City Out of City Total Office Janitorial Supplies O&M Supplies Tools Equip Furn <$5,000 Laundry Professional SeNces R&M Service Contracts R&M Other Services Water (City - Non Tax) Electricity Natural Cas Garbage Waste Disposal $ 2,000 square Feet $ 4,175 Square Feet $ 6,700 square Feet $ 6,500 Square Feet $ 16,000 square Feet $ 6,000 Square Feet $ 28,642 Square Feet $ 2,850 square Feet $ 16,000 Square Feet $ 7,000 square Feet $ 4,000 square Feet $ 1,194 $ $ 2,493 $ $ 4,001 $ $ 3,881 $ $ _9,554 $ $ 3,583 $ $ 17,103 $ $ 1,702 $ $ 9,554 $ $ 4,180 $ $ 2,389 $ 806 1,682 2,699 2,619 6,446 2,417 11,539 1,148 6,446 2,820 1,611 $ 2,000_ $ 4,175 All to Availability All to Availability All to Availability Al to Availability NI to Availability_ Al to Availability All to Availably All to Availability All to Availability All to Availability All to Availability $ $ $ $ $ $ $ $ $ $ $ 722 $ 1,507 $ _ - 2,419 $ - 2,346 i $ - 5,776 - 2,166 $ - 10,339 $ - 1,029 $ - 5,776 $ - 2,527 $ - 1,444 $ - $ 84 $ _ $ 175 $ $ 281 $ _ $ 272 $ $ 670 $ $ 251 $ $ 1,200 $ $ 119_ $ $ 670 $ $ 293 $ $ 168 $ - 806 1,682 $ 6,700 2,699 $ 6,500 2,619 $ 16,000 6,446 $ 6,000 2,417 $ _28,642 $ 2,850 $ 16,000 $ 7,000 11,5_39 1,148 6,44_6 2,820 $ 4,000 1,611 Amb Facilities Budget Total: $ 99,867 $ 59,634 $ 40,233 $ 99,867 $ 36,049 $ - $ 4,184 $ - $ 40,233 Ambulance Fund Budget Grand Total $ 3,815,313 $ 599,595 $ 3,215,718 $ 3,815,313 $ 2,427,202 $ 454,109 $ 281,703 $ 52,704 $ 3,215,718 General and Ambulance Fund Grand Total $ 9,612,925 $ 2,578,238 $ 7,034,687 $ 9,612,925 $ 5,595,483 $ 707,657 $ 649,416 $ 82,131 $ 7,034,687 -4*4 FCS GROLT�' Page 226 of 321 Availability In Demand In Availabilhy Demand Prog 620 - Capital Fire/Amb 2015 Budget Allocation Method Fire EMS Total Availability Method City City I Out of City Out of City Total Tools Equip Furn > $5,000 $ 40,000 Allocated Time $ 6,391 $ 33,609 $ 40,000 Availability Demand Ratio $ 27,789 $ 2,325 $ 3,225 $ 270 33,609 Capital FlretAmb Budget Total: $ 40,000 $ 6,391 I $ 33,609 $ 40,000 $ 27,789 $ 2,325 1 $ 3,225 $ 270 $ 33,609 Ambulance Fund Budget Grand Total $ 3,815,313 $ 599,595 $ 3,215,718 $ 3,815,313 $ 2,427,202 $ 454,109 $ 281,703 $ 52,704 $ 3,215,718 General and Ambulance Fund Grand Total $ 9,612,925 $ 2,578,238 $ 7,034,687 $ 9,612,925 $ 5,595,483 $ 707,657 $ 649,416 $ 82,131 $ 7,034,687 -4*4 FCS GROLT�' Page 226 of 321 Cost of Service Table Page 227 of 321 2016 2015 2015 2016 Total Proposed Cost Recovery Current Cost Full Cost Calculated Ambulance Recovery Recovery Cost Budget* Monthly Fee $ 7.75 $ 21.13 $ 12.65 $ 12.65 Annual Fee $ 93.00 $ 253.51 $ 151.75 $ 151.75 Total Annual Cost $ 7,034,687 $ 7,034,687 $ 7,764,249 $5,660,577 Annual In City Cost $ 6,952,555 $ 6,952,555 $ 7,714,990 Revenue Ambulance Utility Fee $ 2,000,000 $ 5,790,137 $ 3,466,019 $3,466,019 Net Transportation Fees $ 1,027,835 $ 1,027,835 $ 1,310,835 $1,530,600 Miscellaneous Fees $ (3,050) $ (3,050) $ (2,950) $ (2,950) Net Out of City Revenue $ 137,633 $ 137,633 $ 170,505 Fund Balance $ 570,763 $ - $ 246,908 $ 246,908 General Fund Contribution $ 3,219,374 $ - $ 2,523,672 $ 420,000 Total Revenue $ 6,952,555 $ 6,952,555 $ 7,714,990 $5,660,577 Out of City Demand Cost $ 82,131 $ 82,131 $ 49,260 Total Annual Cost $ 7,034,687 $ 7,034,687 $ 7,764,249 $5,660,577 Page 227 of 321 ORDINANCE NO. AN ORDINANCE of the City of Pasco amending Pasco Municipal Code Section 3.07.010 "Ambulance" adjusting the Ambulance Utility fees. WHEREAS, the recently completed Cost -of -Service Study by FCS Group determined that the General Fund is subsidizing the Ambulance Utility fund by more than three million dollars each year, and WHEREAS, The City Council has determined that the Ambulance Utility subsidy from the General Fund must be reduced, and WHEREAS, The City Council has determined that certain amendments to the Ambulance fees are needed, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. PMC Section 3.07.010, subsection B) is amended to read as follows: 3.07.010 AMBULANCE: A) Ambulance Service Rates: Fee/Charge Reference 1) Resident Rate $700.00 $550.00 3.05.040 2) Non -Resident Rate $1050.00 3.05.040 3) Mileage Rate, per mile $11.00 3.05.040 4) Non -Transport Medical Services Rate $250.00 3.05.040 B) Monthly Ambulance Service Fees: 1) Family Residential Ambulance Utility Fee V-.7-5 $12.65 3.05.025 2) Multi -Family Residential Ambulance $7.75 $12.65 3.05.025 Utility Fee 3) Commercial/Business Ambulance Utility $7.75- $12.65 3.05.025 Fee 4) Industrial Ambulance Utility Fee $7.75- $12.65 3.05.025 Section 3. This ordinance shall take full force and effect January 1, 2016. PASSED by the City Council of the City of Pasco, this day of 12015. Matt Watkins Mayor ATTEST: Debra L. Clark City Clerk APPROVED AS TO FORM: Leland B. Kerr City Attorney Page 228 of 321 AGENDA REPORT FOR: City Council TO: Dave Zabell, City Manager FROM: Stan Strebel, Deputy City Manager SUBJECT: Revenue Bonds for Waterworks Utility I. REFERENCE(S): Proposed Ordinance (11/15 Draft) Preliminary Official Statement Project Listing November 24, 2015 Regular Meeting: 11/30/15 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. , relating to the waterworks utility of the City, including the sanitary sewerage system and the system of storm or surface water sewers as a part thereof, specifying, adopting and ordering the carrying out of a system or plan of additions to and betterments and extensions of the waterworks utility of the City; providing for the issuance of one or more series of water and sewer revenue bonds of the City in an aggregate principal amount of not to exceed $[ ] for the purpose of providing the funds necessary (a) to pay all or a portion of the costs of carrying out the plan of additions, (b) to make a deposit to the debt service reserve account, (c) to refund and redeem outstanding water and sewer revenue bonds of the City and (d) to pay the costs of issuance and sale of the bonds and the administrative costs of the refunding; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters and, further authorize publication by summary only. III. FISCAL IMPACT: Estimated total bonds of approximately $15 million to be issued. Debt service requirements to be met from revenue generated by utility user fees. IV. HISTORY AND FACTS BRIEF: At the time of this writing, staff is working out the final details on the bond refunding strategy with the City's financial advisor, accordingly the summary below lacks some Page 229 of 321 V. specifics which, along with the final draft of the ordinance, will be provided at the Council meeting. As proposed the revenue bonds will finance the following: 1. Design and construction of approximately $3.7 million in water projects and $7.0 million in sewer projects 2. An estimated $4 million for refunding water/sewer bonds from previous years, including 2002, 2005, 2007, and possibly 2009, 2010 (A&T) and 2013 (A&T) 3. Funding of the required reserve fund to assure bond repayment. The bonds are expected to be repaid over a 20 -year period. The City has retained the services of a financial advisor to assist with decisions relating to the structuring and sale of the bonds. The City has also applied for a bond rating with Standard and Poor's which is expected to be beneficial to the City in time of sale and interest on the bonds. The proposed ordinance names the City Manager as the City's Designated Representative to conduct the bond sale in the manner and upon the terms deemed most advantageous to the City. The ordinance, when completed for November 30, will provide the parameters within which the Designated Representative may act (see Exhibit A, attached to the ordinance: note, at the time of writing this report, not all parameters had been proposed; recommended parameters will be provided in the proposed final ordinance.) The attachment provides some flexibility to the Designated Representative in making final sale decisions, in the event that conditions change prior to the actual date of the sale (anticipated to take place on December 8, with closing on December 22). DISCUSSION: A listing of projects included in the funding is attached. Staff anticipates being able to provide final information, including the rating for the bonds at the meeting of November 30. This item was discussed at the November 23 Workshop meeting the completed ordinance will be provided Monday, November 30. Page 230 of 321 DRAFT DATED 11/19/2015 CITY OF PASCO, WASHINGTON ORDINANCE NO. AN ORDINANCE relating to the waterworks utility of the City, including the sanitary sewerage system and the system of storm or surface water sewers as a part thereof; specifying, adopting and ordering the carrying out of a system or plan of additions to and betterments and extensions of the waterworks utility of the City; providing for the issuance of one or more series of water and sewer revenue bonds of the City in an aggregate principal amount of not to exceed $[ ] for the purpose of providing the funds necessary (a) to pay all or a portion of the costs of carrying out the plan of additions, (b) to make a deposit to the debt service reserve account, (c) to refund and redeem outstanding water and sewer revenue bonds of the City and (d) to pay the costs of issuance and sale of the bonds and the administrative costs of the refunding; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. Passed: November 30, 2015 This document was prepared by: FOSTER PEPPER PLLC 1111 Third Avenue, Suite 3400 Seattle, Washington 98101 (206) 447-4400 51476003.2 Page 231 of 321 TABLE OF CONTENTS Page Section1. Definitions................................................................................................................1 Section 2. Findings and Determinations...................................................................................8 Section 3. Plan of Additions...................................................................................................10 Section 4. Authorization of the Bonds....................................................................................10 Section 5. Appointment of Designated Representative; Description of the Bonds ................10 Section 6. Registration and Transfer of Bonds.......................................................................10 Section 7. Form and Execution of Bonds...............................................................................11 Section8. Payment of Bonds..................................................................................................12 Section 9. Redemption Provisions and Purchase of Bonds....................................................12 Section 10. Failure to Pay Bonds..............................................................................................13 Section 11. Bond Fund; Payments into Bond Fund..................................................................14 Section 12. Pledge, Lien and Charge for Payment of the Bonds..............................................15 Section13. Flow of Funds........................................................................................................15 Section14. Covenants...............................................................................................................16 Section 15. Provisions for Future Parity Bonds........................................................................17 Section16. Tax Covenants.......................................................................................................17 Section 17. Refunding or Defeasance of Bonds.......................................................................18 Section 18. Deposit of Bond Proceeds; Creation of Construction Accounts ............................18 Section 19. Use of Refunding Proceeds; the Refunding Plan...................................................19 Section 20. Sale and Delivery of the Bonds.............................................................................21 Section 21. Official Statement; Continuing Disclosure............................................................21 Section 22. General Authorization and Ratification.................................................................22 Section23. Severability............................................................................................................22 Section 24. Effective Date of Ordinance..................................................................................22 Exhibit A Parameters for Final Terms Exhibit B Parity Conditions Exhibit C Form of Undertaking to Provide Continuing Disclosure 51476003.2 -1 Page 232 of 321 CITY OF PASCO, WASHINGTON ORDINANCE NO. AN ORDINANCE relating to the waterworks utility of the City, including the sanitary sewerage system and the system of storm or surface water sewers as a part thereof, specifying, adopting and ordering the carrying out of a system or plan of additions to and betterments and extensions of the waterworks utility of the City; providing for the issuance of one or more series of water and sewer revenue bonds of the City in an aggregate principal amount of not to exceed $[ ] for the purpose of providing the funds necessary (a) to pay all or a portion of the costs of carrying out the plan of additions, (b) to make a deposit to the debt service reserve account, (c) to refund and redeem outstanding water and sewer revenue bonds of the City and (d) to pay the costs of issuance and sale of the bonds and the administrative costs of the refunding; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN as follows: Section 1. Definitions. As used in this ordinance, the following words shall have the following meanings: (a) "2002 Bonds" means the outstanding Water and Sewer Revenue Bonds, 2002, of the City issued pursuant to Ordinance No. 3567. (b) "2005 Bonds" means the outstanding Water and Sewer Revenue Bonds, 2005, of the City issued pursuant to Ordinance No. 3740. (c) "2007 Bonds" means the outstanding Water and Sewer Revenue Bonds, 2007, of the City issued pursuant to Ordinance No. 3835. (d) "2009 Bonds" means the outstanding Water and Sewer Revenue Bonds, 2009, of the City issued pursuant to Ordinance No. 3915. (e) "2010A Bonds" means the outstanding Water and Sewer Improvement and Refunding Revenue Bonds, 2010A, of the City issued pursuant to Ordinance No. 3962. (f) "2010T Bonds" means the outstanding Water and Sewer Refunding Revenue Bonds, 2010T (Taxable), of the City issued pursuant to Ordinance No. 3962. (g) "2013A Bonds" means the outstanding Water and Sewer Revenue Bonds, 2013A, of the City issued pursuant to Ordinance No. 4126. -1- 51476003.2 Page 233 of 321 (h) "2013T Bonds" means the outstanding Water and Sewer Revenue Bonds, 2013T (Taxable), of the City issued pursuant to Ordinance No. 4126. (i) "Acquired Obligations " means the United States Treasury Certificates of Indebtedness, Notes, and Bonds -State and Local Government Series and/or other Government Obligations, as identified in the Refunding Trust Agreement, purchased to carry out the Refunding Plan. 0) "Alternate Security" means any bond insurance, collateral, security, letter of credit, guaranty, surety bond or similar credit enhancement device providing for or securing the payment of all or part of the principal of and interest on any specified Parity Bonds, issued by an institution which has been assigned a credit rating at the time of issuance of the applicable Parity Bonds, respectively, secured by such Alternate Security in the highest rating categories by both Moody's Investors Service, Inc., and Standard & Poor's Ratings Services. (k) "Annual Debt Service" for any or all Parity Bonds for any year means all the interest, plus all principal which will mature or come due in such year, less all bond interest payable from the proceeds of any such bonds in that year. (1) "Assessment Bonds " means, at the time of determination, Parity Bonds then outstanding equal to the sum of the nondelinquent unpaid principal amount of ULID Assessments then outstanding plus any ULID Assessment payments then on deposit in the Principal and Interest Account of the Bond Fund. Assessment Bonds shall be allocated to each remaining maturity of Parity Bonds in the same proportion as the total of the Assessment Bonds relates to the total of the Parity Bonds then outstanding. (m) "Authorized Denomination " means $5,000.00 or any integral multiple thereof within a maturity. (n) `Average Annual Debt Service" means, at the time of its calculation, the sum of the Annual Debt Service for the remaining years to the last scheduled maturity of the applicable Parity Bonds divided by the number of those years. (o) `Beneficial Owner" means, with respect to a Bond, the owner of any beneficial interest in that Bond. (p) "Bond Counsel " means the firm of Foster Pepper PLLC, its successor, or any other attorney or firm of attorneys selected by the City with a nationally recognized standing as bond counsel in the field of municipal finance. (q) "Bond Fund" means the Water and Sewer Revenue and Refunding Bond Redemption Fund, 1991, of the City created and established by Ordinance No. 2846 for the payment of the principal of and interest on the Parity Bonds. (r) "Bond Purchase Agreement" means an offer to purchase the Bonds, or a Series of Bonds, setting forth certain terms and conditions of the issuance, sale and delivery of that Series of the Bonds, which offer is authorized to be accepted by the Designated Representative on behalf of the City, if consistent with this ordinance. -2- 51476003.2 Page 234 of 321 (s) "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of identifying ownership of the Bonds. (t) "Bond Registrar" means the Fiscal Agent, or any successor bond registrar selected by the City. (u) "Bonds " means the bonds of the City issued pursuant to and for the purposes provided in this ordinance in one or more series and with such additional series and other designation as the Designated Representative may deem appropriate. (v) "City" means the City of Pasco, Washington, a municipal corporation duly organized and existing under the laws of the State. (w) "City Contribution" means legally available money of the City, in addition to proceeds of the Bonds, necessary or advisable to carry out the Refunding Plan, as determined by the Designated Representative. (x) "City Council" means the legislative authority of the City, as duly and regularly constituted from time to time. (y) "Code" means the United States Internal Revenue Code of 1986, as amended, and applicable rules and regulations promulgated thereunder. (z) "Construction Accounts" means such accounts created in the Water/Sewer Fund as the Finance Manager shall designate for the purpose of paying the costs of the Plan of Additions and the costs of issuance of the Bonds. (aa) "Coverage Requirement" in any year means an amount of Net Revenue of the Waterworks Utility, together with the ULID Assessments collected in that year, equal to at least the Maximum Annual Debt Service on all Assessment Bonds plus an amount of the Net Revenue of the Waterworks Utility not used to calculate the Coverage Requirement on Assessment Bonds equal to at least 1.25 times Maximum Annual Debt Service on all bonds payable from the Bond Fund that are not Assessment Bonds. (bb) `DTC" means The Depository Trust Company, New York, New York., or its nominee. (cc) `Designated Representative" means an officer of the City appointed in Section 5 of this ordinance to serve as the City's designated representative in accordance with RCW 39.46.040(2). (dd) "Final Terms" means the terms and conditions for the sale of a Series of Bonds including, but not limited to the amount, date or dates, denominations, interest rate or rates (or mechanism for determining interest rate or rates), payment dates, final maturity, redemption rights, price, and other terms or covenants, including minimum savings for refunding bonds. (ee) "Finance Manager" means the City's Finance Manager or such other officer of the City who succeeds to substantially all of the responsibilities of that office. 51476003.2 -� Page 235 of 321 (ft) "Fiscal Agent" means the fiscal agent of the State, as the same may be designated by the State from time to time. (gg) "Future Parity Bonds " means any and all water and sewer revenue bonds or other obligations of the City issued or incurred after the date of the issuance of the Bonds pursuant to the provisions of the Parity Bond Ordinances, the payment of the principal of and interest on which constitutes a lien and charge upon the Net Revenue of the Waterworks Utility and ULID Assessments on a parity with the lien and charge upon such Net Revenue and ULID Assessments for the Outstanding Parity Bonds and the Bonds, but shall not include variable rate obligations. (hh) "Government Obligations" has the meaning given in RCW 39.53.010, as now in effect or as may hereafter be amended. (ii) "Gross Revenue of the Waterworks Utility" or "Gross Revenue" means all of the earnings and revenues received by the City from the maintenance and operation of the Waterworks Utility and all earnings from the investment of money on deposit in the Bond Fund, except ULID Assessments, government grants, proceeds from the sale of Waterworks Utility property, City taxes collected by or through the Waterworks Utility, principal proceeds of bonds and earnings or proceeds from any investments in a trust, defeasance or escrow fund created to defease or refund Waterworks Utility obligations (until commingled with other earnings and revenues of the Waterworks Utility) or held in a special account for the purpose of paying a rebate to the United States Government under the Code. 0j) "Issue Date" means, with respect to a Bond, the date of initial issuance and delivery of that Bond to the Purchaser in exchange for the purchase price of that Bond. (kk) "Letter of Representations" means the Blanket Issuer Letter of Representations between the City and DTC dated August 31, 1998. (11) `Maximum Annual Debt Service" means, at the time of calculation, the maximum amount of Annual Debt Service that will mature or come due in the current year or any future year on the outstanding Parity Bonds. (mm) "MSRB" means the Municipal Securities Rulemaking Board. (nn) "Net Revenue of the Waterworks Utility" or "Net Revenue" means the Gross Revenue less Operating and Maintenance Expenses. (oo) "Official Statement" means an offering document, disclosure document, private placement memorandum or substantially similar disclosure document provided to purchasers and potential purchasers in connection with the initial offering of the Bonds in conformance with Rule 15c2 12 or other applicable regulations of the SEC. (pp) "Operating and Maintenance Expenses" means all reasonable expenses incurred by the City in causing the Waterworks Utility to be operated and maintained in good repair, working order and condition, including payments made to any other municipal corporation or private entity for water service and for sewage treatment and disposal service or other utility service in the event the City combines such service in the Waterworks Utility and enters into a -4- 51476003.2 Page 236 of 321 contract for such service, but not including any depreciation or taxes levied or imposed by the City or payments to the City in lieu of taxes, or capital additions or capital replacements to the Waterworks Utility. (qq) "Outstanding Parity Bonds" means the outstanding 2002 Bonds, 2005 Bonds, 2007 Bonds, 2009 Bonds, 2010A Bonds, 2010T Bonds, 2013A Bonds and 2013T Bonds. Outstanding Parity Bonds shall not include any Refunded Bonds. (rr) "Owner" means, without distinction, the Registered Owner and the Beneficial Owner. (ss) "Parity Bonds " means the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds. (tt) "Parity Bond Ordinances" means Ordinance No. 3567, Ordinance No. 3740, Ordinance No. 3835, Ordinance No. 3915, Ordinance No. 3962, Ordinance No. 4126 and this ordinance. (uu) `Parity Conditions" means the conditions for issuing Future Parity Bonds set forth in Exhibit B to this ordinance, which is incorporated herein by this reference. (w) "Plan of Additions " means the system or plan of additions to and betterments and extensions of the Waterworks Utility specified, adopted and ordered to be carried out by this ordinance. (ww) "Principal and Interest Account" means the account of that name created in the Bond Fund for the payment of the principal of and interest on all Parity Bonds. (xx) "Project Bonds " means those Bonds allocated to carrying out the Plan of Additions, including providing for the Reserve Requirement with respect to the Project Bonds. (yy) "Purchaser" means Piper Jaffray & Co. of Seattle, Washington, or such other purchaser of the Bonds whose offer is accepted by the Designated Representative in accordance with this ordinance. (zz) "Rating Agency" means any nationally recognized rating agency then maintaining a rating on the Bonds at the request of the City. (aaa) "Record Date" means the Bond Registrar's close of business on the 15th day of the month preceding an interest payment date. With respect to redemption of a Bond prior to its maturity, the Record Date shall mean the Bond Registrar's close of business on the date on which the Bond Registrar sends the notice of redemption in accordance with Section 9. (bbb) "Redemption Date" means, with respect to each series of the Refunded Bonds, a date or dates selected by the Designated Representative. (ccc) "Refunded Bonds" means the Refunding Candidates selected by the Designated Representative and identified in the Refunding Plan. 51476003.2 -5 Page 237 of 321 (ddd) "Refunding Bonds" means those Bonds allocated to carrying out the Refunding Plan, including providing for the Reserve Requirement with respect to the Refunding Bonds. (eee) "Refunding Candidates" means (1) the currently outstanding $1,160,000 principal amount of the 2002 Bonds maturing on December 1 of each of the years 2019 through 2021, (2) the currently outstanding $2,605,000 principal amount of the 2005 Bonds maturing on September 1 of each of the years 2016 through 2025, and (3) the currently outstanding $315,000 principal amount of the 2007 Bonds maturing on September 1, 2022. (fff) "Refunding Plan " means (as further described in the Refunding Trust Agreement): (1) the deposit with the Refunding Trustee of proceeds of the Bonds in an amount, together with the City Contribution (if any), sufficient to acquire the Acquired Obligations and establish a beginning cash balance; (2) the receipt by the Refunding Trustee of the maturing principal of and interest on the Acquired Obligations, and the application of such amounts (together with any other cash held by it) to pay principal of and interest on the Refunded Bonds when due up to and including the applicable Redemption Dates, and the call, payment and redemption of the Refunded Bonds on the applicable Redemption Dates at a price equal to the principal amount to be redeemed; and (3) payment of the costs of issuing the Bonds and the costs of carrying out the foregoing elements of the Refunding Plan, if payment of such costs is so specified in the Refunding Trust Agreement. (ggg) "Refunding Trust Agreement" means the refunding trust agreement between the City and the Refunding Trustee, providing for the carrying out of the Refunding Plan. (hhh) `Refunding Trustee" means the trustee, or any successor trustee, designated by the Designated Representative to serve as refunding trustee to carry out the Refunding Plan. (iii) `Registered Owner" means, with respect to a Bond, the person in whose name that Bond is registered on the Bond Register. For so long as the City utilizes the book -entry only system for the Bonds under the Letter of Representations, Registered Owner shall mean the Securities Depository. (jjj) "Reserve Account" means the account of that name created in the Bond Fund for the purpose of securing the payment of the principal of and interest on the Parity Bonds. (kkk) "Reserve Insurance" means, in lieu of cash and investments, insurance obtained by the City to fund all or a portion of the Reserve Requirement for any Parity Bonds then outstanding for which such insurance is obtained; and for the Outstanding Parity Bonds and the Bonds means the Surety Bond provided by the Reserve Insurer. (111) "Reserve Insurer" means Ambac Assurance Corporation for the Outstanding Parity Bonds and the Bonds. -6 514760032 Page 238 of 321 (mmm) "Reserve Requirement" means: (1) For the Outstanding Parity Bonds and the Bonds, an amount equal to the least of (a) 10% of the issue price of the then -outstanding Parity Bonds, (b) Maximum Annual Debt Service on the then -outstanding Parity Bonds and (c) 1.25 times Average Annual Debt Service on the then -outstanding Parity Bonds. For the purposes of determining Maximum Annual Debt Service and Average Annual Debt Service for calculating the Reserve Requirement, all bonds payable or proposed to be paid from the Bond Fund shall be treated as a single issue and the number of years to the last scheduled maturity for any of those issues shall be used as the denominator. (2) For any Future Parity Bonds, an amount equal to the difference between the Reserve Requirement for the then -outstanding Parity Bonds and the least of (a) 10% of the issue price of the then -outstanding Parity Bonds and the Future Parity Bonds proposed to be issued, (b) Maximum Annual Debt Service on the then -outstanding Parity Bonds and the Future Parity Bonds proposed to be issued and (c) 1.25 times Average Annual Debt Service on the then -outstanding Parity Bonds and the Future Parity Bonds proposed to be issued, but in no event to exceed an amount equal to the least of 10% of the issue price of the proposed Future Parity Bonds, Maximum Annual Debt Service on those bonds and 1.25 times Average Annual Debt Service on the proposed bonds. For the purposes of determining Maximum Annual Debt Service and Average Annual Debt Service for calculating the Reserve Requirement, all bonds payable or proposed to be paid from the Bond Fund shall be treated as a single issue and the number of years to the last scheduled maturity for any of those issues shall be used as the denominator. (nnn) "Rule 15c2-12" means Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934, as amended. (000) "SEC" means the United States Securities and Exchange Commission. (ppp) "Series of the Bonds " or "Series " means a series of the Bonds issued pursuant to this ordinance. (qqq) "State " means the State of Washington. (rrr) "Surety Bond" means the surety bond issued by the Reserve Insurer guaranteeing certain payments into the Reserve Account with respect to the Outstanding Parity Bonds and the Bonds as provided in and subject to the limitations set forth in that surety bond. (sss) "Taxable Bonds" means any Series issued on a taxable basis. (ttt) "Tax -Exempt Bonds " means any Series issued on a tax-exempt basis. (uuu) "Term Bonds" means each Bond designated as a Term Bond and subject to mandatory redemption in the years and amounts set forth in the Bond Purchase Agreement. For any Outstanding Parity Bonds or Future Parity Bonds, "Term Bonds" means those bonds of any single issue or series designated as Term Bonds pursuant to the ordinance authorizing their 51476003.2 - / Page 239 of 321 issuance or sale and which are subject to mandatory prior redemption or for which mandatory sinking fund installments are provided. (vvv) "ULID" means utility local improvement district. (www) "ULID Assessments " means all ULID assessments and installments thereof, plus interest and penalties thereon, in any ULID created to secure the payment of any Parity Bonds and pledged to be paid into the Bond Fund. (xxx) "Undertaking" means the undertaking to provide continuing disclosure entered into pursuant to Section 21(c) of this ordinance. (yyy) "Water and Sewer Revenue Fund" means that special fund of the City into which all of the Gross Revenue of the Waterworks Utility of the City shall be deposited. (zzz) "Waterworks Utility" means the combined sewerage system and water system of the City, together with the storm or surface water sewers and agricultural/industrial wastewater treatment facilities heretofore or hereafter authorized to be constructed and installed as a part of such combined systems, and together with all additions thereto and betterments and extensions thereof now or hereafter made. Section 2. Findings and Determinations. The City takes note of the following facts and makes the following findings and determinations: (a) Background. The City, by Ordinance No. 531, passed March 7, 1944, provided that the system of sewerage of the City, including all additions, extensions and betterments thereto, should be operated as a part of and as belonging to the Waterworks Utility of the City pursuant to the provisions of Chapter 193 of the Laws of 1941 of the State of Washington (RCW 35.67.320 et seq.). (b) Plan of Additions. The City has determined that it is necessary and in the best interests of the City that certain improvements be made and there be adopted a system or plan of additions to and betterments and extensions of the Waterworks Utility (the "Plan of Additions"). (c) Outstanding Parity Bonds. Pursuant to Ordinance No. 2846, the City heretofore issued and sold its 1991 Bonds (all of which have been paid and retired), and reserved the right to issue additional water and sewer revenue bonds of the City which would have a lien and charge upon the Net Revenue of the Waterworks Utility and ULID Assessments on a parity with those 1991 Bonds if the Parity Conditions are met. The City currently has outstanding the following water and sewer revenue bonds issued on a parity of lien and charge on the Net Revenue of the Waterworks Utility and ULID Assessments with the 1991 Bonds: 51476003.2 -Q Page 240 of 321 (d) Parity Conditions Met. The City Council finds and declares that (1) all payments required by the Outstanding Parity Bonds are provided for in this ordinance or have been provided for or made into the Bond Fund for those outstanding bonds and that no deficiency exists in such fund; (2) provision is hereinafter made for the deposit in the Reserve Account of the Bond Fund of the Reserve Requirement for the Bonds; and (3) that all other conditions set forth in the Parity Conditions will have been met and satisfied before the Bonds are delivered to the initial purchaser. (e) Refunding Candidates. In order to realize a debt service savings to the City and its ratepayers, the City Council wishes to refund all or a portion of the Refunding Candidates. Chapter 39.53 RCW and other laws of the State authorize the City to carry out the Refunding Plan. (f) Sufficiency of Gross Revenue; Due Regard. The City Council finds and determines that the Gross Revenue of the Waterworks Utility will be more than sufficient to (1) meet all Operating and Maintenance Expenses thereof (and the cost of maintenance and operation as contemplated by RCW 35.92.100), and the debt service requirements of the Outstanding Parity Bonds, and (2) permit the setting aside into the Bond Fund out of the Net Revenue of the Waterworks Utility of the City of amounts sufficient to pay the principal of and interest on the Bonds when due. The City Council declares that in creating the Bond Fund and in fixing the amounts to be paid into that fund, it has exercised due regard for Operating and Maintenance Expenses (and the cost of maintenance and operation contemplated by RCW 35.92.100) and the debt service requirements of the Outstanding Parity Bonds, and the City has not bound and obligated itself to set aside and pay into the Bond Fund a greater amount or proportion of the Gross Revenue of the Waterworks Utility of the City than in the judgment of the City Council will be available over and above such Operating and Maintenance Expenses and debt service requirements of the Outstanding Parity Bonds, and that no portion of the Gross Revenue of the Waterworks Utility of the City has been previously pledged for any indebtedness other than the Outstanding Parity Bonds. (g) Issuance of Bonds. Based on the foregoing, the City Council finds that it is in the best interest of the City to issue and sell the Bonds to the Purchaser, pursuant to the terms set forth in the Bond Purchase Agreement as approved by the Designated Representative consistent with this ordinance. 51476003.2 _9 Page 241 of 321 Original Ordinance Principal Dated Authorizing Passage Name of Issue Amount Date Ordinance Date 2002 Bonds $ 5,945,000 10/01/2002 3567 10/07/2002 2005 Bonds 4,400,000 12/05/2005 3740 11/21/2005 2007 Bonds 845,000 7/02/2007 3835 6/18/2007 2009 Bonds 10,045,000 4/17/2009 3915 4/06/2009 2010A Bonds 9,070,000 6/03/2010 3962 5/17/2010 2010T Bonds 1,240,000 6/03/2010 3962 5/17/2010 2013A Bonds 2,520,000 12/05/2013 4126 11/18/2013 2013T Bonds 7,235,000 12/05/2013 4126 11/18/2013 (d) Parity Conditions Met. The City Council finds and declares that (1) all payments required by the Outstanding Parity Bonds are provided for in this ordinance or have been provided for or made into the Bond Fund for those outstanding bonds and that no deficiency exists in such fund; (2) provision is hereinafter made for the deposit in the Reserve Account of the Bond Fund of the Reserve Requirement for the Bonds; and (3) that all other conditions set forth in the Parity Conditions will have been met and satisfied before the Bonds are delivered to the initial purchaser. (e) Refunding Candidates. In order to realize a debt service savings to the City and its ratepayers, the City Council wishes to refund all or a portion of the Refunding Candidates. Chapter 39.53 RCW and other laws of the State authorize the City to carry out the Refunding Plan. (f) Sufficiency of Gross Revenue; Due Regard. The City Council finds and determines that the Gross Revenue of the Waterworks Utility will be more than sufficient to (1) meet all Operating and Maintenance Expenses thereof (and the cost of maintenance and operation as contemplated by RCW 35.92.100), and the debt service requirements of the Outstanding Parity Bonds, and (2) permit the setting aside into the Bond Fund out of the Net Revenue of the Waterworks Utility of the City of amounts sufficient to pay the principal of and interest on the Bonds when due. The City Council declares that in creating the Bond Fund and in fixing the amounts to be paid into that fund, it has exercised due regard for Operating and Maintenance Expenses (and the cost of maintenance and operation contemplated by RCW 35.92.100) and the debt service requirements of the Outstanding Parity Bonds, and the City has not bound and obligated itself to set aside and pay into the Bond Fund a greater amount or proportion of the Gross Revenue of the Waterworks Utility of the City than in the judgment of the City Council will be available over and above such Operating and Maintenance Expenses and debt service requirements of the Outstanding Parity Bonds, and that no portion of the Gross Revenue of the Waterworks Utility of the City has been previously pledged for any indebtedness other than the Outstanding Parity Bonds. (g) Issuance of Bonds. Based on the foregoing, the City Council finds that it is in the best interest of the City to issue and sell the Bonds to the Purchaser, pursuant to the terms set forth in the Bond Purchase Agreement as approved by the Designated Representative consistent with this ordinance. 51476003.2 _9 Page 241 of 321 Section 3. Plan of Additions. The City specifies, adopts and orders the carrying out of a system or plan of additions to and betterments and extensions of the Waterworks Utility consisting of the following (the "Plan of Additions"): [Insert list of improvements] There shall be included in the foregoing system or plan the acquisition and installation of all necessary valves, pumps, fittings, couplings, connections, equipment and appurtenances, and replacements and improvements necessary or desirable to maintain or increase the effectiveness of the service provided by such facilities, other improvements to and extensions of the Waterworks Utility, the acquisition of any easements, rights-of-way and land that may be required and the performance of such work as may be incidental and necessary. All of the foregoing shall be in accordance with the plans and specifications therefor prepared by the staff and consulting engineers of the City. The City Council may modify the details of the Plan of Additions where, in its judgment, it appears advisable if such modifications do not substantially alter the purposes of the Plan of Additions. The estimated cost of the acquisition, construction, installation and financing of the above-described improvements to be paid from the proceeds of the Bonds is declared to be approximately $[ ]. Any excess proceeds of the Project Bonds remaining following payment of the costs of the Plan of Additions shall be applied to costs of other improvements to the Waterworks Utility of the City heretofore or hereafter approved in the City's Capital Budget Section 4. Authorization of the Bonds. For the purpose of providing the funds necessary to (a) pay costs of carrying out the Plan of Additions, (b) carry out the Refunding Plan; (c) make a deposit to the Reserve Account and (d) pay the costs of issuance and sale of the Bonds, the City shall issue water and sewer revenue bonds in one or more Series in the aggregate principal amount of not to exceed $[ I. Section 5. Appointment of Designated Representative; Description of the Bonds. The Finance Manager and the Deputy City Manager are each appointed as the Designated Representative of the City, both with the individual authority to conduct the sale of the Bonds in the manner and upon the terms deemed most advantageous to the City, and to approve the Final Terms of the Bonds, with such additional terms and covenants as the Designated Representative deems advisable, within the parameters set forth in Exhibit A, which is attached to this ordinance and incorporated by this reference. Section 6. Registration and Transfer of Bonds. (a) Registration of Bonds; Bond Register. Each Bond shall be issued only in registered form as to both principal and interest and the ownership of each Bond shall be recorded on the Bond Register. The Bond Register shall contain the name and mailing address of each Registered Owner and the principal amount and number of each Bond held by each Registered Owner. -10- 51476003.2 Page 242 of 321 (b) Bond Registrar; Duties. The Fiscal Agent is appointed as initial Bond Registrar. The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration and transfer of the Bonds, which shall be open to inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance and the System of Registration. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's Certificate of Authentication on each Bond. The Bond Registrar may become an Owner with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Owners. (c) Transfer or Exchange. A Bond surrendered to the Bond Registrar may be exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal amount and of the same Series, interest rate and maturity. A Bond may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange or transfer shall be without cost to the Owner or transferee. The Bond Registrar shall not be obligated to exchange any Bond or transfer registered ownership during the period between the applicable Record Date and the next upcoming interest payment or redemption date. (d) Securities Depository; Book -Entry Only Form. DTC is appointed as initial Securities Depository. Each Bond initially shall be registered in the name of Cede & Co., as the nominee of DTC. Each Bond registered in the name of the Securities Depository shall be held fully immobilized in book -entry only form by the Securities Depository in accordance with the provisions of the Letter of Representations. Registered ownership of any Bond registered in the name of the Securities Depository may not be transferred except: (i) to any successor Securities Depository; (ii) to any substitute Securities Depository appointed by the City; or (iii) to any person if the Bond is no longer to be held in book -entry only form. Upon the resignation of the Securities Depository, or upon a termination of the services of the Securities Depository by the City, the City may appoint a substitute Securities Depository. If (i) the Securities Depository resigns and the City does not appoint a substitute Securities Depository, or (ii) the City terminates the services of the Securities Depository, the Bonds no longer shall be held in book - entry only form and the registered ownership of each Bond may be transferred to any person as provided in this ordinance. Neither the City nor the Bond Registrar shall have any obligation to participants of any Securities Depository or the persons for whom they act as nominees regarding accuracy of any records maintained by the Securities Depository or its participants. Neither the City nor the Bond Registrar shall be responsible for any notice that is permitted or required to be given to a Registered Owner except such notice as is required to be given by the Bond Registrar to the Securities Depository. Section 7. Form and Execution of Bonds. (a) Form of Bonds; Signatures and Seal. Each Bond shall be prepared in a form consistent with the provisions of this ordinance and State law. Each Bond shall be signed by the -11- 51476003.2 Page 243 of 321 Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature is authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on its Issue Date. (b) Authentication. Only a Bond bearing a Certificate of Authentication in substantially the following form, manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: "Certificate Of Authentication. This Bond is one of the fully registered City of Pasco, Washington, [Name of Series] described in the Bond Ordinance." The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. Section 8. Payment of Bonds. Principal of and interest on each Bond shall be payable in lawful money of the United States of America. Principal of and interest on each Bond registered in the name of the Securities Depository is payable in the manner set forth in the Letter of Representations. Interest on each Bond not registered in the name of the Securities Depository is payable by electronic transfer on the interest payment date, or by check or draft of the Bond Registrar mailed on the interest payment date to the Registered Owner at the address appearing on the Bond Register on the Record Date. However, the City is not required to make electronic transfers except pursuant to a request by a Registered Owner in writing received on or prior to the Record Date and at the sole expense of the Registered Owner. Principal of each Bond not registered in the name of the Securities Depository is payable upon presentation and surrender of the Bond by the Registered Owner to the Bond Registrar. The Bonds are not subject to acceleration under any circumstances. Section 9. Redemption Provisions and Purchase of Bonds. (a) Optional Redemption. The Bonds shall be subject to redemption at the option of the City on terms acceptable to the Designated Representative, as set forth in the Bond Purchase Agreement, consistent with the parameters set forth in Exhibit A. (b) Mandatory Redemption. Each Bond that is designated as a Term Bond in the Bond Purchase Agreement, consistent with the parameters set forth in Exhibit A and except as set forth below, shall be called for redemption at a price equal to the stated principal amount to be redeemed, plus accrued interest, on the dates and in the amounts as set forth in the Bond Purchase Agreement. If a Term Bond is redeemed under the optional redemption provisions, defeased or purchased by the City and surrendered for cancellation, the principal amount of the Term Bond so redeemed, defeased or purchased (irrespective of its actual redemption or purchase prices) shall be credited against one or more scheduled mandatory redemption installments for that Term Bond. The City shall determine the manner in which the credit is to be -12- 51476003.2 Page 244 of 321 allocated and shall notify the Bond Registrar in writing of its allocation prior to the earliest mandatory redemption date for that Term Bond for which notice of redemption has not already been given. (c) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of the outstanding Bonds are to be redeemed at the option of the City, the City shall select the Series and maturities to be redeemed. If fewer than all of the outstanding Bonds of a maturity of a Series are to be redeemed, the Securities Depository shall select Bonds registered in the name of the Securities Depository to be redeemed in accordance with the Letter of Representations, and the Bond Registrar shall select all other Bonds to be redeemed randomly in such manner as the Bond Registrar shall determine. All or a portion of the principal amount of any Bond that is to be redeemed may be redeemed in any Authorized Denomination. If less than all of the outstanding principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall be issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option of the Registered Owner) of the same Series, maturity and interest rate in any Authorized Denomination in the aggregate principal amount to remain outstanding. (d) Notice of Redemption. Notice of redemption of each Bond registered in the name of the Securities Depository shall be given in accordance with the Letter of Representations. Notice of redemption of each other Bond, unless waived by the Registered Owner, shall be given by the Bond Registrar not less than 20 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the Registered Owner at the address appearing on the Bond Register on the Record Date. The requirements of the preceding sentence shall be satisfied when notice has been mailed as so provided, whether or not it is actually received by an Owner. In addition, the redemption notice shall be mailed or sent electronically within the same period to the MSRB (if required under the Undertaking), to each Rating Agency, and to such other persons and with such additional information as the Finance Manager shall determine, but these additional mailings shall not be a condition precedent to the redemption of any Bond. (e) Rescission of Optional Redemption Notice. In the case of an optional redemption, the notice of redemption may state that the City retains the right to rescind the redemption notice and the redemption by giving a notice of rescission to the affected Registered Owners at any time on or prior to the date fixed for redemption. Any notice of optional redemption that is so rescinded shall be of no effect, and each Bond for which a notice of redemption has been rescinded shall remain outstanding. (f) Effect of Redemption. Interest on each Bond called for redemption shall cease to accrue on the date fixed for redemption, unless either the notice of optional redemption is rescinded as set forth above, or money sufficient to effect such redemption is not on deposit in the Bond Fund or in a trust account established to refund or defease the Bond. (g) Purchase of Bonds. The City reserves the right to purchase any or all of the Bonds offered to the City at any time at any price acceptable to the City plus accrued interest to the date of purchase. Section 10. Failure to Pay Bonds. If the principal of any Bond is not paid when the Bond is properly presented at its maturity date or date fixed for redemption, the City shall be -13- 51476003.2 Page 245 of 321 obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund, or in a trust account established to refund or defease the Bond, and the Bond has been called for payment by giving notice of that call to the Registered Owner. Section 11. Bond Fund; Payments into Bond Fund. The Bond Fund has been previously created and established as a special fund of the City known and designated as the Water and Sewer Revenue and Refunding Bond Redemption Fund, 1991, which fund has been divided into two accounts, namely, the Principal and Interest Account and the Reserve Account. So long as any Parity Bonds are outstanding against the Bond Fund, the Finance Manager shall set aside and pay into the Bond Fund all ULID Assessments upon their collection and, out of the Net Revenue of the Waterworks Utility, certain fixed amounts without regard to any fixed proportion, namely, amounts, together with any ULID Assessments collected by the City and deposited into the applicable account in the Bond Fund and investment earnings in that account, as follows: (a) Into the Principal and Interest Account, on or before each interest or principal and interest payment date, an amount equal to the interest or the principal and interest to become due and payable on that interest or principal and interest payment date of all Parity Bonds; and (b) Into the Reserve Account, on the Issue Date of the Bonds, an amount sufficient, together with the Reserve Insurance, to fully fund the Reserve Requirement for all Parity Bonds. Money deposited in the Reserve Account for the Reserve Requirement for all Parity Bonds may be decreased for any issue of Parity Bonds when and to the extent the City has provided for an Alternate Security or Reserve Insurance for those bonds. The City may establish additional accounts in the Bond Fund for the deposit of ULID Assessments after the deposit of the required amount in the other funds. The Reserve Account for any Future Parity Bonds may be accumulated from any other funds which the City legally may have available for such purpose in addition to using ULID Assessments and Net Revenue of the Waterworks Utility. The City further agrees that when the required amounts have been paid into the Reserve Account in the Bond Fund, the City will maintain those amounts therein at all times, except for withdrawals therefrom as authorized herein, until there is sufficient money in the Bond Fund, including the Reserve Account therein, to pay the principal of and interest to maturity on all outstanding bonds payable from the Bond Fund, at which time no further payments need be made into the Bond Fund, and the money in the Bond Fund, including the Reserve Account, may be used to pay that principal and interest. If there shall be a deficiency in the Principal and Interest Account to meet maturing installments of either principal or interest, as the case may be, on the Bonds, the deficiency shall be made up from the Reserve Account by first the withdrawal of cash and investments therefrom and after all cash and investments have been depleted, then by the draws on the Reserve Insurance for that purpose on a pro rata basis. Any deficiency created in the Reserve Account by -14- 51476003.2 Page 246 of 321 reason of any withdrawal shall then be made up from the Net Revenue of the Waterworks Utility first available after making necessary provisions for the required payments into the Principal and Interest Account. The Reserve Insurer shall be reimbursed first, within one year, to reinstate the Reserve Insurance, before the balance of the Reserve Requirement is restored. All money in the Reserve Account not needed to meet the payments of principal and interest when due may be kept on deposit in the official bank depository of the City or in any national bank or may be invested in any legal investment for City funds maturing not later than the interest or principal and interest payment date when the money will be needed. Interest on any of those investments or on that bank account shall be deposited in and become a part of the Reserve Account until the Reserve Requirement shall have been accumulated therein, after which time the interest shall be deposited in the Principal and Interest Account. Notwithstanding the provisions for the deposit or maintenance of earnings in accounts of the Bond Fund, any earnings which are subject to a federal tax or rebate requirement may be withdrawn from the Bond Fund for deposit into a separate fund or account for that purpose. If the City shall fail to set aside and pay into the Bond Fund the amounts which it has obligated itself by this section to set aside and pay therein, the owner of any Bond may bring suit against the City to compel it to do so. Section 12. Pledge, Lien and Charge for Payment of the Bonds. The Net Revenue of the Waterworks Utility and ULID Assessments are pledged to the payment of the principal of and interest on the Bonds when due and shall constitute a lien and charge upon that Net Revenue of the Waterworks Utility and ULID Assessments prior and superior to any other charges whatsoever, except that the lien and charge upon such Net Revenue and ULID Assessments for the Bonds shall be on a parity with the lien and charge thereon for any outstanding Parity Bonds. Section 13. Flow of Funds. Funds in the Water and Sewer Revenue Fund shall be used in the following order of priority: (1) To pay Operating and Maintenance Expenses; (2) To make all payments required to be made into the Bond Fund to pay and secure the payment of the Annual Debt Service on all outstanding Parity Bonds; (3) To make all payments required to be made into the Reserve Account and to make all payments (principal and interest) required to be made in connection with Reserve Insurance and any Alternate Security, except if there is not sufficient money to make all payments for Reserve Insurance and any Alternate Security, the payments shall be made on a pro rata basis with deposits in the Reserve Account. (4) To make all payments required to be made into the loan redemption funds or accounts, and other revenue bond redemption funds created to pay the debt service on any revenue obligation having a lien upon the Net Revenue of the Waterworks Utility subordinate to the lien of the Bonds; and -15- 51476003.2 Page 247 of 321 (5) To make necessary additions, betterments, improvements or repairs to the Waterworks Utility, and to retire by redemption or purchase any outstanding Parity Bonds, or for any other lawful purpose. Section 14. Covenants. The City covenants and agrees with the owner of each of the Bonds as follows: (a) It will not sell, lease, mortgage, or in any manner encumber or dispose of all the properties of the Waterworks Utility unless provision is made for payment into the Bond Fund of an amount sufficient either to defease all outstanding Parity Bonds or to pay the principal of and interest on all the outstanding Parity Bonds in accordance with the terms thereof, and further binds itself irrevocably not to mortgage, sell, lease or in any manner dispose of any part of the Waterworks Utility that is used, useful and material to the operation of such utility unless provision is made for replacement thereof or for payment into the Bond Fund of an amount which shall bear the same ratio to the amount of outstanding Parity Bonds as the Net Revenue available for debt service for such bonds for the twelve months preceding such sale, lease, encumbrance or disposal from the portion of the Waterworks Utility so leased, encumbered or disposed of bears to the Net Revenue available for debt service for such bonds from the entire Waterworks Utility for the same period. Any such money so paid into the Bond Fund shall be used to retire outstanding Parity Bonds at the earliest possible date. (b) It will maintain and keep the Waterworks Utility in good repair, working order and condition and to operate such utility and the business in connection therewith in an efficient manner and at a reasonable cost. (c) It will maintain and collect such rates as will produce sufficient Net Revenue of the Waterworks Utility, together with ULID Assessment collections, as will make available for the payment of the principal of and interest on the Parity Bonds as they come due and for payments as required to be made into the Reserve Account therein an amount at least equal to the Coverage Requirement and, in addition thereto, that it will pay all Operating and Maintenance Expenses and otherwise meet the obligations of the City as herein set forth. (d) It will keep proper books of accounts and records separate and apart from other accounts and records, in which complete and correct entries will be made of all transactions relating to the Waterworks Utility of the City, and it will make available to any Owner on written request the annual operating and income statements of the Waterworks Utility. (e) Except to aid the poor or infirm, to provide for resource conservation or to provide for the proper handling of hazardous materials, it will not furnish water or sewerage service to any customer whatsoever free of charge and it shall, not later than 60 days after the end of each calendar year, take such legal action as may be feasible to enforce collection of all collectible delinquent accounts and, in addition thereto, shall promptly avail itself of its utility lien rights, as set forth in applicable statutes. (f) It will carry the types of insurance on its Waterworks Utility properties in the amounts normally carried by private water and sewer companies engaged in the operation of water and sewerage systems, and the cost of such insurance shall be considered a part of -16- 51476003.2 Page 248 of 321 Operating and Maintenance Expenses, or it will implement and maintain a self-insurance program or an insurance pool program with reserves adequate, in the judgment of the City Council, to protect the owners of the Parity Bonds against loss. (g) To the extent permitted by State law, it will maintain its corporate identity and existence so long as any Bonds remain outstanding. (h) It will not grant any competing utility service franchise and will use all legal means to prevent competition with the Waterworks Utility. (i) If on the first day of January in any year, two installments of any ULID Assessment are delinquent, or the final installment of any ULID Assessment has been delinquent for more than one year, the City shall proceed with the foreclosure of the delinquent assessment or delinquent installments thereof in the manner provided by law. Section 15. Provisions for Future Parity Bonds. The City reserves the right to issue Future Parity Bonds if the Parity Conditions set forth in Exhibit B are met and complied with at the time of the issuance of those Future Parity Bonds. Nothing herein contained shall prevent the City from issuing Future Parity Bonds to refund any maturing Parity Bonds then outstanding, money for the payment of which is not otherwise available. Nothing herein contained shall prevent the City from issuing revenue bonds or incurring other obligations that are a charge upon the Net Revenue of the Waterworks Utility of the City subordinate or inferior to the payments required to be made therefrom into the Bond Fund for the payment of Parity Bonds or from pledging the payment of utility local improvement district assessments into a redemption fund created for the payment of the principal of and interest on those subordinate lien bonds or obligations as long as such utility local improvement district assessments are levied for improvements constructed from the proceeds of those subordinate lien bonds or obligations. Section 16. Tax Covenants. (a) Preservation of Tax Exemption for Interest on Tax -Exempt Bonds. The City covenants that it will take all actions necessary to prevent interest on the Tax -Exempt Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Tax -Exempt Bonds or other funds of the City treated as proceeds of the Tax -Exempt Bonds that will cause interest on the Tax -Exempt Bonds to be included in gross income for federal income tax purposes. The City also covenants that it will, to the extent the arbitrage rebate requirements of Section 148 of the Code are applicable to the Tax -Exempt Bonds, take all actions necessary to comply (or to be treated as having complied) with those requirements in connection with the Tax -Exempt Bonds. (b) Post -Issuance Compliance. The Finance Manager is authorized and directed to review and update the City's written procedures to facilitate compliance by the City with the covenants in this ordinance and the applicable requirements of the Code that must be satisfied -17- 51476003.2 Page 249 of 321 after the Issue Date to prevent interest on the Tax -Exempt Bonds from being included in gross income for federal tax purposes. Section 17. Refunding or Defeasance of Bonds. The City may issue refunding bonds pursuant to State law or use money available from other lawful sources to carry out a refunding or defeasance plan, which may include (a) paying when due the principal of and interest on any or all of the Bonds (the "defeased Bonds"); (b) redeeming the defeased Bonds prior to their maturity; and (c) paying the costs of the refunding or defeasance. If the City sets aside special trust fund or escrow account irrevocably pledged to that redemption or defeasance (the "trust account"), money and/or Government Obligations maturing at a time or times and bearing interest in amounts sufficient to redeem, refund or defease the defeased Bonds in accordance with their terms, then all right and interest of the Owners of the defeased Bonds in the covenants of this ordinance and in the Gross Revenue of the Waterworks Utility, ULID Assessments, funds and accounts obligated to the payment of the defeased Bonds, other than the right to receive the funds so set aside and pledged, shall cease and become void. Thereafter, the Owners of defeased Bonds shall have the right to receive payment of the principal of and interest on the defeased Bonds solely from the trust account and the defeased Bonds shall be deemed no longer outstanding. In that event, the City may apply money remaining in any fund or account (other than the trust account) established for the payment or redemption of the defeased Bonds to any lawful purpose, subject only to the rights of the Owners of any other Parity Bonds then outstanding. If the refunding plan provides that the defeased Bonds or the refunding bonds to be issued be secured by money and/or Government Obligations pending the prior redemption of the defeased Bonds and if such refunding plan also provides that certain money and/or Government Obligations are pledged irrevocably for the prior redemption of the defeased Bonds included in that refunding plan, then only the debt service on the Bonds which are not defeased Bonds and the refunding bonds, the payment of which is not so secured by the refunding plan, shall be included in the computation of the coverage requirement for the issuance of Future Parity Bonds and the annual computation of coverage for determining compliance with the rate covenants. Section 18. Deposit of Bond Proceeds; Creation of Construction Accounts. Immediately upon the issuance and delivery of the Bonds, the City shall cause the following to occur: (a) Reserve Account. Proceeds of the Bonds shall either be deposited in the Reserve Account or used to acquire Reserve Insurance in an amount sufficient to satisfy the Reserve Requirement with respect to the Bonds. (b) Refunding Plan. The remaining proceeds of the Refunding Bonds shall be deposited with the Refunding Trustee as set forth in Section 19. (c) Construction Accounts. The Finance Manager is authorized to establish one or more special accounts within the Water/Sewer Fund, designated as the Construction Accounts. The remaining proceeds of the Project Bonds shall be paid into the Construction Accounts and used to pay the costs of the Plan of Additions and the costs of issuing the Project Bonds (if not included in the Refunding Plan). Until needed to pay those costs, the City may invest principal -18- 51476003.2 Page 250 of 321 proceeds deposited in the Construction Accounts temporarily in any legal investment, and the investment earnings may be retained in such accounts and be spent for the purposes of those accounts, except that earnings subject to a federal tax or rebate requirement may be withdrawn therefrom and used for those tax or rebate purposes. Section 19. Use of Refunding Proceeds; the Refunding Plan. (a) Appointment of the Refunding Trustee. The Designated Representative is authorized and directed to appoint a financial institution to serve as the Refunding Trustee and to perform the duties of Refunding Trustee under this ordinance. (b) Selection of Refunded Bonds. The Designated Representative is authorized and directed to select the Refunding Candidates to be refunded by the Bonds. The Designated Representative may choose to refund fewer than all of the Refunding Candidates. The Refunded Bonds, as selected by the Designated Representative, shall be identified in the Bond Purchase Contract and/or the Refunding Trust Agreement. (c) Use of Refunding Proceeds; Purchase of Acquired Obligations. On the Issue Date, sufficient proceeds of the sale of the Refunding Bonds, together with any City Contribution, shall be deposited with the Refunding Trustee and used to discharge the obligations of the City relating to the Refunded Bonds under the applicable Parity Bond Ordinances by providing for the payment of the amounts required to be paid by the Refunding Plan. To the extent practicable, such obligations shall be discharged fully by the Refunding Trustee's simultaneous purchase of the Acquired Obligations, bearing such interest and maturing as to principal and interest in such amounts and at such times so as to provide, together with a beginning cash balance, if necessary, for the payment of the amount required to be paid by the Refunding Plan. The Acquired Obligations shall be listed and more particularly described in a schedule attached to the Refunding Trust Agreement, but are subject to substitution as set forth below. The Designated Representative is authorized and directed to approve the Acquired Obligations, if any, to be purchased. Any Project Bond proceeds deposited with the Refunding Trustee and not used to pay the costs of issuance of the Project Bonds shall be returned to the City for deposit in the Construction Accounts. Any Refunding Bond proceeds or other money deposited with the Refunding Trustee not needed to carry out the Refunding Plan shall be returned to the City for deposit in the Principal and Interest Account to pay interest on the Refunding Bonds on the next upcoming interest payment date. (d) Substitution of Acquired Obligations. The City reserves the right at any time to substitute cash or other direct, noncallable obligations of the United States of America ("Substitute Obligations") for any of the Acquired Obligations if the City obtains (1) an opinion of Bond Counsel to the effect that the interest on the Tax -Exempt Refunding Bonds and the Refunded Bonds will remain excluded from gross income for federal income tax purposes under Sections 103, 148 and 149(d) of the Code, and (2) a verification by a nationally recognized independent certified public accounting firm that such substitution will not impair the timely payment of the amounts required to be paid by the Refunding Plan. Any surplus money resulting from the sale, transfer, other disposition or redemption of the Acquired Obligations and the -19- 51476003.2 Page 251 of 321 substitutions therefor shall be released from the trust estate and transferred to the City to be used for any lawful purpose (e) Administration of Refunding Plan. The Refunding Trustee is authorized and directed to purchase the Acquired Obligations (or Substitute Obligations) and to make the payments required to be made pursuant to the Refunding Plan from the Acquired Obligations (or Substitute Obligations) and money deposited with the Refunding Trustee pursuant to this ordinance and the Refunding Trust Agreement. All Acquired Obligations (or Substitute Obligations) and money deposited with the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied in accordance with the provisions of the applicable Parity Bond Ordinance authorizing the Refunded Bonds, this ordinance, chapter 39.53 RCW and other applicable laws of the State and the Refunding Trust Agreement. All necessary and proper fees, compensation and expenses of the Refunding Trustee and all other costs incidental to the setting up of the escrow to accomplish the Refunding Plan and costs related to the issuance, sale and delivery of the Bonds, including bond printing, rating agency fees, verification fees, Bond Counsel's fees and other related expenses, shall be paid out of the proceeds of the Bonds. (f) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan, the Designated Representative is authorized and directed to execute and deliver to the Refunding Trustee the Refunding Trust Agreement setting forth the duties, obligations and responsibilities of the Refunding Trustee in connection with the payment, redemption and retirement of the Refunded Bonds as provided herein and stating that the provisions for payment of the fees, compensation and expenses of the Refunding Trustee set forth therein are satisfactory to it. (g) Call for Redemption of the Refunded Bonds. The Designated Representative is authorized to call the Refunded Bonds for redemption on their applicable Redemption Dates at par, plus accrued interest. Such call for redemption shall be irrevocable after the delivery of the Bonds to the Purchaser. The Refunding Trustee is authorized and directed to give or cause to be given such notices as required, at the times and in the manner required, pursuant to the ordinances authorizing the issuance of the Refunded Bonds and the Refunding Trust Agreement to carry out the Refunding Plan. (h) Additional Finding with Respect to Refunding. Prior to the execution and delivery of the Bond Purchase Agreement, the Designated Representative shall determine, on behalf of the City, that the issuance, sale and delivery of the Refunding Bonds will effect a net present value savings to the City and its ratepayers as set forth in paragraph (i)(2) of Exhibit A. The City Council finds and determines that such net present value savings is a substantial savings and that achieving such net present value savings by issuing the Bonds is in the best interest of the City and in the public interest. In making the finding and determination that the issuance, sale and delivery of the Bonds will effect such net present value savings, the Designated Representative shall give consideration to the fixed maturities of the Refunding Bonds and the Refunded Bonds, the costs related to the issuance, sale and delivery of the Refunding Bonds and the known earned income from the investment of the proceeds of the issuance and sale of the Refunding Bonds and the City Contribution, if any, used in the Refunding Plan pending payment and redemption of the Refunded Bonds. -20- 51476003.2 Page 252 of 321 The Designated Representative further shall find and determine that the money to be deposited with the Refunding Trustee to carry out the Refunding Plan will discharge and satisfy the obligations of the City under the applicable Parity Bond Ordinance, and the pledges, charges, trusts, covenants and agreements of the City therein made or provided for as to the Refunded Bonds, and that the Refunded Bonds will no longer be deemed to be outstanding under applicable Parity Bond Ordinance immediately upon the deposit of such money with the Refunding Trustee. Section 20. Sale and Delivery of the Bonds. (a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is authorized to sell the Bonds by negotiated sale to the Purchaser, based on the assessment of the Designated Representative of market conditions, in consultation with appropriate City officials and staff, Bond Counsel and other advisors. In accepting the Final Terms, the Designated Representative shall take into account those factors that, in the judgment of the Designated Representative, may be expected to result in the lowest true interest cost to the City. The Bond Purchase Agreement shall set forth the Final Terms of each Series of Bonds. The Designated Representative is authorized to execute the Bond Purchase Agreement on behalf of the City, so long as the terms provided therein are consistent with the terms of this ordinance. (b) Preparation, Execution and Delivery of the Bonds. The Bonds will be prepared at City expense and will be delivered to the Purchaser in accordance with the Bond Purchase Agreement, together with the approving legal opinion of Bond Counsel regarding the Bonds. Section 21. Official Statement; Continuing Disclosure. (a) Preliminary Official Statement Deemed Final. The Designated Representative shall review and, if acceptable to him or her, approve the preliminary Official Statement prepared in connection with the sale of the Bonds to the public. For the sole purpose of the Purchaser's compliance with paragraph (b)(1) of Rule 15c2-12, the Designated Representative is authorized to deem that preliminary Official Statement final as of its date, except for the omission of information permitted to be omitted by Rule 15c2-12. The City approves the distribution to potential purchasers of the Bonds of a preliminary Official Statement that has been approved by the Designated Representative and been deemed final, if applicable, in accordance with this subsection. (b) Approval of Final Official Statement. The City approves the preparation of a final Official Statement for the Bonds to be sold to the public in the form of the preliminary Official Statement that has been approved and deemed final in accordance with subsection (a), with such modifications and amendments as the Designated Representative deems necessary or desirable, and further authorizes the Designated Representative to execute and deliver such final Official Statement to the Purchaser. The City authorizes and approves the distribution by the Purchaser of the final Official Statement so executed and delivered to purchasers and potential purchasers of the Bonds. (c) Undertaking to Provide Continuing Disclosure. If necessary to meet the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to the Purchaser acting as a -21- 51476003.2 Page 253 of 321 participating underwriter for the Bonds, the Designated Representative is authorized to execute a written undertaking to provide continuing disclosure for the benefit of holders of the Bonds in substantially the form attached as Exhibit C. Section 22. General Authorization and Ratification. The Designated Representative and other appropriate officers of the City are severally authorized to take such actions and to execute such documents as in their judgment may be necessary or desirable to carry out the transactions contemplated in connection with this ordinance, and to do everything necessary for the prompt delivery of the Bonds to the Purchaser and for the proper application, use and investment of the proceeds of the Bonds. All actions taken prior to the effective date of this ordinance in furtherance of the purposes described in this ordinance and not inconsistent with the terms of this ordinance are ratified and confirmed in all respects. Section 23. Severability. The provisions of this ordinance are declared to be separate and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any person or circumstance, such offending provision shall, if feasible, be deemed to be modified to be within the limits of enforceability or validity. However, if the offending provision cannot be so modified, it shall be null and void with respect to the particular person or circumstance, and all other provisions of this ordinance in all other respects, and the offending provision with respect to all other persons and all other circumstances, shall remain valid and enforceable. Section 24. Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and five days following its publication as provided by law. PASSED by the City Council and APPROVED by the Mayor of the City of Pasco, Washington, at a regular open public meeting, this 16th day of November, 2015. Matt Watkins, Mayor ATTEST: Debra L. Clark, City Clerk APPROVED AS TO FORM: Foster Pepper PLLC Bond Counsel -22- 51476003.2 Page 254 of 321 EXHIBIT A DESCRIPTION OF THE BONDS (i) Principal Amount. The Bonds may be issued in one or more Series and shall not exceed the aggregate principal amount of $[ 1. Date or Dates. Each Bond shall be dated its Issue Date, which date may not be later than December 31, 2016. (iii) Denominations, Name, etc. The Bonds shall be issued in Authorized Denominations and shall be numbered separately in the manner and shall bear any name and additional designation as deemed necessary or appropriate by the Designated Representative. (iv) Interest Rate(s). Each Bond shall bear interest at a fixed rate per annum (computed on the basis of a 360 -day year of twelve 30 -day months) from the Issue Date or from the most recent date for which interest has been paid or duly provided for, whichever is later. One or more rates of interest may be fixed for the Bonds. No rate of interest for any Tax -Exempt Bond may exceed []%, and the true interest cost to the City for the Tax -Exempt Bonds may not exceed [_]%. No rate of interest for any Taxable Bond may exceed []%, and the true interest cost to the City for the Taxable Bonds may not exceed [_]%. (v) Payment Dates. Interest shall be payable semiannually on each June 1 and December 1 (or such other semiannual dates acceptable to the Designated Representative), commencing no later than the next such semiannual date following the Issue Date. Principal payments shall commence on a date acceptable to the Designated Representative and shall be payable at maturity or in mandatory redemption installments annually thereafter, on dates acceptable to the Designated Representative. (vi) Final Maturity. The Bonds shall mature no later than the date that is [_] years after the Issue Date. (vii) Redemption Rights. The Designated Representative may approve in the Bond Purchase Agreement provisions for the optional and mandatory redemption of Bonds, subject to the following: (1) Optional Redemption. Any Bond may be designated as being (A) subject to redemption at the option of the City prior to its maturity date on the dates and at the prices set forth in the Bond Purchase Agreement; or (B) not subject to redemption prior to its maturity date. If a Bond is subject to optional redemption prior to its maturity, it must be subject to such redemption on one or more dates occurring not more than 101/2 years after the Issue Date. (2) Mandatory Redemption. Any Bond may be designated as a Term Bond, subject to mandatory redemption prior to its maturity on the dates and in the amounts set forth in the Bond Purchase Agreement. A-1 51476003.2 Page 255 of 321 (viii) Price. The purchase price for the Tax -Exempt Bonds may not be less than []% or more than [_]% of the stated principal amount of the Tax -Exempt Bonds. The purchase price for the Taxable Bonds may not be less than []% or more than []% of the stated principal amount of the Taxable Bonds. (ix) Other Terms and Conditions. (1) The Designated Representative may determine whether it is in the City's best interest to provide for bond insurance or other credit enhancement; and may accept such additional terms, conditions and covenants as he or she may determine are in the best interests of the City, consistent with this ordinance. (2) The Designated Representative must have determined that the Parity Conditions have been met and satisfied as of the Issue Date of the Bonds. (3) The Refunding Bonds shall produce a minimum net present value savings to the City and its ratepayers of []% (as a percentage of the Refunded Bonds). Net present value savings means the aggregate difference between (i) annual debt service on the Refunded Bonds, less (ii) annual debt service on the Refunding Bonds (including expenses related to costs of issuance of such Refunding Bonds) discounted to the Issue Date using the yield on the Bonds as the discount rate, plus (iii) excess cash, if any distributed to the City on the Issue Date, and less (iv) the amount of the City Contribution, if any, made on such Issue Date. A-2 51476003.2 Page 256 of 321 EXHIBIT B PARITY CONDITIONS (a) There shall be no deficiency in the Bond Fund. (b) The ordinance providing for the issuance of the Future Parity Bonds shall provide that all ULID Assessments shall be paid directly into the Bond Fund, except for any prepaid assessments permitted by law to be paid into a construction fund or account. (c) The ordinance providing for the issuance of such Future Parity Bonds shall provide for the deposit into the Reserve Account of (i) an amount equal to the Reserve Requirement for those Future Parity Bonds from the Future Parity Bond proceeds, or (ii) Reserve Insurance or Alternate Security or an amount plus Reserve Insurance or Alternate Security equal to the Reserve Requirement for those Future Parity Bonds, or (iii) to the extent that the Reserve Requirement is not funded from Future Parity Bond proceeds or Reserve Insurance or Alternate Security at the time of issuance of those Future Parity Bonds, by no later than the fifth anniversary date from the dated date of the respective issue of Future Parity Bonds from ULID Assessments, if any, levied and first collected for the payment of the principal of and interest on those Future Parity Bonds and, to the extent that ULID Assessments are insufficient, then from the Net Revenue of the Waterworks Utility in approximately equal annual payments, the Reserve Requirement for those Future Parity Bonds. No Reserve Insurance or Alternate Security may be used to satisfy the Reserve Requirement for Future Parity Bonds unless (i) the insurance policy or Alternate Security is non -cancelable and (ii) the insurer or provider of the Alternate Security as of the time of issuance of such insurance or Alternate Security is rated in the highest rating categories by both Moody's Investors Service, Inc., and Standard & Poor's Ratings Services. (d) The ordinance authorizing the issuance of such Future Parity Bonds shall provide for the payment of mandatory redemption or sinking fund requirements into the Bond Fund for any Term Bonds to be issued and for regular payments to be made for the payment of the principal of such Term Bonds on or before their maturity, or, as an alternative, the mandatory redemption of those Term Bonds prior to their maturity date from money in the Principal and Interest Account. (e) There shall be on file from a licensed professional engineer experienced in the design, construction and operation of municipal utilities, or from an independent certified public accountant, a certificate showing that in his or her professional opinion the Net Revenue of the Waterworks Utility for any 12 consecutive calendar months out of the immediately preceding 24 calendar months shall be equal to the Coverage Requirement for each year thereafter, except that such certificate may be provided by a City representative if it is based solely upon actual historical Net Revenue of the Waterworks Utility without any adjustment. The certificate, in estimating the Net Revenue of the Waterworks Utility available for debt service, shall use the historical Net Revenue of the Waterworks Utility for any 12 consecutive months out of the 24 months immediately preceding the month of delivery of the Future Parity Bonds. Net Revenue of the Waterworks Utility may be adjusted to reflect: B-1 51476003.2 Page 257 of 321 (1) Any changes in rates in effect and being charged or expressly adopted by ordinance to take effect within 180 days after the date of this Certificate; (2) Income derived from customers of the Waterworks Utility that have become customers during the 12 consecutive month period or thereafter adjusted to reflect one year's net revenue from those customers; (3) Revenue from any customers to be connected to the Waterworks Utility who have paid the required connection charges; (4) Revenue received or to be received which is derived from any person, firm, corporation or municipal corporation under any executed contract for water, sewage disposal or other utility service, which revenue was not included in the historical Net Revenue of the Waterworks Utility; (5) The engineer's or accountant's estimate of the Net Revenue of the Waterworks Utility to be derived from customers to connect within 180 days after the date of the completion of the additions to and improvements and extensions of the Waterworks Utility to be paid for out of the proceeds of the sale of the additional Future Parity Bonds or from other additions to and improvements and extensions of the Waterworks Utility then under construction and not fully connected to the facilities of the Waterworks Utility when such additions, improvements and extensions are completed; and (6) Any increases or decreases in Net Revenue as a result of any actual or reasonably anticipated changes in Operating and Maintenance Expense subsequent to the 12 month period. If Future Parity Bonds proposed to be so issued are for the sole purpose of refunding outstanding bonds payable from the Bond Fund, such certification of coverage shall not be required if the amount required for the payment of the principal and interest in each year for the refunding bonds is not increased over the amount for that year required for the bonds to be refunded thereby and if the maturities of such refunding bonds are not extended beyond the maturities of the bonds to be refunded thereby. Prior: Ordinance No. 3567, Section 16 (2002 Bonds) Ordinance No. 3740, Section 16 (2005 Bonds) Ordinance No. 3835, Section 17 (2007 Bonds) Ordinance No. 3915, Section 18 (2009 Bonds) Ordinance No. 3962, Section 21 (2010 Bonds) Ordinance No. 4126, Section 16 (2013 Bonds) B-2 51476003.2 Page 258 of 321 EXHIBIT C [Form of] UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE City of Pasco, Washington [Name of Series] The City of Pasco, Washington (the "City"), makes the following written Undertaking for the benefit of holders of the above -referenced bonds (the "Bonds"), for the sole purpose of assisting the Purchaser in meeting the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to a participating underwriter for the Bonds. Capitalized terms used but not defined below shall have the meanings given in Ordinance No. of the City (the "Bond Ordinance"). (a) Undertaking to Provide Annual Financial Information and Notice of Listed Events. The City undertakes to provide or cause to be provided, either directly or through a designated agent, to the MSRB, in an electronic format as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB: (i) Annual financial information and operating data of the type included in the final official statement for the Bonds and described in paragraph (b) ("annual financial information"); (ii) Timely notice (not in excess of 10 business days after the occurrence of the event) of the occurrence of any of the following events with respect to the Bonds: (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notice of Proposed Issue (IRS Form 5701 — TEB) or other material notices or determinations with respect to the tax status of the Tax -Exempt Bonds; (7) modifications to rights of holders of the Bonds, if material; (8) bond calls (other than scheduled mandatory redemptions of Term Bonds), if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the City, as such `Bankruptcy Events" are defined in Rule 15c2-12; (13) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) appointment of a successor or additional trustee or the change of name of a trustee, if material. 51476003.2 C-1 Page 259 of 321 (iii) Timely notice of a failure by the City to provide required annual financial information on or before the date specified in paragraph (b). (b) Type of Annual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide in paragraph (a): (i) Shall consist of (1) annual financial statements prepared (except as noted in the financial statements) in accordance with applicable generally accepted accounting principles applicable to local governmental units of the State such as the City, as such principles may be changed from time to time, which statements may be unaudited, provided, that if and when audited financial statements are prepared and available they will be provided; (2) a statement of authorized, issued and outstanding bonded debt secured by the Net Revenue of the Waterworks Utility; (3) debt service coverage ratios; and (4) general customer statistics for the Waterworks Utility; (ii) Shall be provided not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal year may be changed as required or permitted by State law, commencing with the City's fiscal year ending December 31, 2015; and (iii) May be provided in a single or multiple documents, and may be incorporated by specific reference to documents available to the public on the Internet website of the MSRB or filed with the SEC. (c) Amendment of Undertaking. This Undertaking is subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, Rating Agency or the MSRB, under the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided. (d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the holder of each Bond, and shall not inure to the benefit of or create any rights in any other person. (e) Termination of Undertaking. The City's obligations under this Undertaking shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under this Undertaking shall terminate if the provisions of Rule 15c2-12 that require the City to comply with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of Bond Counsel delivered to the City, and the City provides timely notice of such termination to the MSRB. (f) Remedy for Failure to Comply with Undertaking. As soon as practicable after the City learns of any failure to comply with this Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with this Undertaking shall constitute a default in respect of the Bonds. The 51476003.2 C-2 Page 260 of 321 sole remedy of any holder of a Bond shall be to take action to compel the City or other obligated person to comply with this Undertaking, including seeking an order of specific performance from an appropriate court. (g) Designation of Official Responsible to Administer Undertaking. The Finance Manager or his or her designee is the person designated, in accordance with the Bond Ordinance, to carry out the Undertaking in accordance with Rule 15c2-12, including, without limitation, the following actions: (i) Preparing and filing the annual financial information undertaken to be provided; (ii) Determining whether any event specified in paragraph (a) has occurred, assessing its materiality, where necessary, with respect to the Bonds, and preparing and disseminating any required notice of its occurrence; (iii) Determining whether any person other than the City is an "obligated person" within the meaning of Rule 15c2-12 with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice of listed events for that person required under Rule 15c2-12; (iv) Selecting, engaging and compensating designated agents and consultants, including financial advisors and legal counsel, to assist and advise the City in carrying out this Undertaking; and (v) Effecting any necessary amendment of this Undertaking. 51476003.2 C-3 Page 261 of 321 CERTIFICATION I, the undersigned, City Clerk of the City of Pasco, Washington (the "City"), hereby certify as follows: 1. The attached copy of Ordinance No. (the "Ordinance") is a full, true and correct copy of an ordinance duly passed at a regular meeting of the City Council of the City held at the regular meeting place thereof on November 30, 2015, as that ordinance appears on the minute book of the City. 2. The Ordinance will be in full force and effect five days after publication in the City's official newspaper, which publication date is , 2015. 3. A quorum of the members of the City Council was present throughout the meeting and a majority of the members voted in the proper manner for the passage of the Ordinance. Dated: .2015. CITY OF PASCO, WASHINGTON Debra L. Clark, City Clerk 51476003.2 Page 262 of 321 PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER , 2015 NEW ISSUE BOOK -ORDER ENTRY RATING REQUESTED (S&P) NOT BANK QUALIFIED In the opinion of Foster Pepper PLLC, Seattle, Washington (`Bond Counsel'), under existing federal lase and assuming compliance with applicable requirements of the Internal Revenue Code of 1986, as amended (the "Code'), that must be satioed subsequent to the issue date of the Bond, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals. However, while interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the Bonds received by corporations is taken into account in the computation of adjusted current earnings forpuiposes of the alternative minimum tax applicable to corporations, interest on Bonds received by certain S corporations may be subject to tax, and interest on the Bonds received by foreign corporations with United States branches may be subject to a foreign branch profits tax. Receipt of interest on the Bonds may have other federal tax consequences for certain taxpayers. See the captions `TAX MATTERS" herein. DATED: Date of Delivery CITY OF PASCO, WASHINGTON WATER AND SEWER IMPROVEMENT AND REFUNDING REVENUE BONDS, 2015 DUE: May 1, as shown on inside cover The City of Pasco, Washington (the "City', Water and Sewer Improvement and Refunding Revenue Bonds, 2015 (the `Bonds"), will be issued as fully registered bonds under a book -entry only system, registered in the name of Cede and Co. as bond owner and nominee for DTC. DTC will act as initial securities depository for the Bonds. Individual purchases of the Bonds will be made in book -entry form, in the denomination of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interests in the Bonds. Interest on the Bonds will be paid semiannually on each May 1 and November 1, beginning May 1, 2016, to the maturity or earlier redemption of the Bonds. The principal of, and premium, if any, and interest on the Bonds are payable by the fiscal agent of the State of Washington (currently, U.S. Bank National Association), to DTC, which, in turn, is obligated to remit such payments to its participants for subsequent disbursement to beneficial owners of the Bonds, as described in Appendix D — `BOOK - ENTRY SYSTEM". MATURITY SCHEDULE - See Inside Cover The Net Revenue of the City's Waterworks Utility, including any Utility Local Improvement District Assessments ("ULID Assessments'D in any ULID created to secure the payment of any Parity Bonds, are pledged to the payment of the principal of and interest on the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds when due. The lien and charge of the Bonds, the Outstanding Parity Bonds and any Future Parity Bonds on the Net Revenue and ULID Assessments is prior and superior to any other liens and charges whatsoever. See "SECURITY FOR THE BONDS" herein. The Bonds are not general obligations of the City, and neither the full faith and credit nor the taxing power of the City, Franklin County or of the State of Washington nor any revenues of the City derived from sources other than the Waterworks Utility are pledged to the payment thereof. Certain Bonds are subject to redemption prior to their stated maturity dates. See "DESCRIPTION OF THE BONDS — Redemption Provisions." The Bonds are offered when, as and if issued, subject to the final approving legal opinion of Foster Pepper PLLC, Seattle, Washington, Bond Counsel. The form of Bond Counsel's opinion is attached as Appendix C. It is expected that the Bonds will be available for delivery in New York, New York, through the facilities of DTC by Fast Automated Securities Transfer on or about December 22, 2015. This coverpage contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Oficial Statement to obtain information essential to the making of an informed investment decision. * Preliminary, subject to change. Pipe rJaff ray Page 263 of 321 CITY OF PASCO, WASHINGTON WATER AND SEWER IMPROVEMENT AND REFUNDING REVENUE BONDS, 2015 MATURITY SCHEDULE Serial Maturities Due Interest CUSIP No. May 1 Amount* Rate Yield (Base 702571)(1) Term Bonds Due Interest CUSIP No. May 1 Amount* Rate Yield (Base 702571)(1) (1) The CUSIP data herein is provided by CUSIP Global Services, managed on behalf of the America Bankers Association by Standard & Poor's. The CUSIP numbers are not intended to create a database and do not serve in any way as a substitute for CUSIP service. CUSIP numbers have been assigned by an independent company not affiliated with the City and are provided solely for convenience and reference. The CUSIP numbers for a specific maturity are subject to change after the issuance. * Preliminary, subject to change. Page 264 of 321 This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. No dealer, broker, salesperson, or other person has been authorized by the City or the Underwriter to give any information or to make any representations with respect to the Bonds other than those contained in this Official Statement and, if given or made, such information or representations must not be relied upon. The City makes no representation regarding the accuracy or completeness of Bond Counsel's form of opinion, information related to the Underwriter or information provided by the Underwriter regarding the reoffering prices, or the information in Appendix D—"Book-Entry Transfer System," which has been provided by DTC. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made by use of this Official Statement shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. Certain statements contained in this Official Statement do not reflect historical facts, but are forecasts and "forward- looking statements." No assurance can be given that the future results discussed herein will be achieved, and actual results may differ materially from the forecasts described herein. In this respect, words such as "estimated," "projected," "anticipate," "expect," "intend," "plan," "believe" and similar expressions are intended to identify forward-looking statements. All projections, assumptions and other forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth in this Official Statement. These forward-looking statements speak only as of the date they were prepared. The City specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of this Official Statement, except as otherwise expressly provided in "CONTINUING DISCLOSURE." The presentation of certain information, including tables of revenues of the Waterworks Utility, is intended to show recent historic information and is not intended to indicate future or continuing trends in the financial position or other affairs of the City. No representation is made that past experience, as it might be shown by such financial and other information, will necessarily continue or be repeated in the future. Information relating to debt and tax limitations is based on existing statutes and constitutional provisions. Changes in State law could also alter these provisions. The order and placement of materials in this Official Statement, including the appendices, are not to be deemed to be a determination of relevance, materiality or importance, and this Official Statement, including the appendices, must be considered in its entirety. The offering of the Bonds is made only by means of this entire Official Statement. The Bonds have not been registered under the Securities Act of 1933, as amended, and the Bond Ordinance has not been qualified under the Trust Indenture Act of 1939, as amended, in reliance upon exemptions contained in such acts. The registration or qualification of the Bonds in accordance with applicable provisions of securities laws of the state in which the Bonds have been registered or qualified and the exemption from the registration or qualification in other states cannot be regarded as a recommendation thereof. Neither these states nor any of their agencies have passed upon the merits of the Bonds or the accuracy or completeness of this Official Statement. Any representation to the contrary may be a criminal offense. The connection with this offering, the Underwriter pay over -allot or effect transactions that stabilize or maintain the market price of the Bonds at levels above those which might otherwise prevail in the open market. Such stabilization, if commenced, may be discontinued at any time without prior notice to any person. This Preliminary Official Statement, as of its date, is in a form deemed final by the City for purposes of Securities and Exchange Commission Rule 15c2 -12(b)(1) but is subject to revision, amendment, and completion in a final Official Statement which will be available within seven business days after the sale date. Page 265 of 321 Members Matt Watkins Rebecca Francik Robert Hoffmann Michael Garrison Saul Martinez Tom Larsen Al Yenney * Re-elected in November, 2015 CITY OF PASCO, WASHINGTON 525 NORTH THIRD AVENUE P.O. Box 293 PASCO, WA 99301 (509) 545-3404 www.pasco-wa.gov(,) ELECTED OFFICIALS Position Mayor Mayor Pro -Tem Council Member Council Member Council Member Council Member Council Member CITY ADMINISTRATIVE STAFF Term Expires December 31, 2015 * December 31, 2015 * December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2015 Dave Zabell City Manager Stan Strebel Deputy City Manager Rick Terway Administrative and Community Services Director Eva Lindgren Administrative and Community Services Deputy Director Ahmad Qayoumi Public Works Director BOND REGISTRAR AND PAYING AGENT U.S. Bank National Association Seattle, Washington BOND COUNSEL Foster Pepper PLLC Seattle, Washington FINANCIAL ADVISOR Northwest Municipal Advisors Bellevue, Washington UNDERWRITER Piper Jaffray & Co. Portland, Oregon (9) The 00 's website is not part of this Official Statement, and investors should not rely on information which is presented in the City's website in determining whether to purchase the Bonds. This inactive textual reference to the City's website is not a hyperlink and does not incorporate the 00 's website by reference. Page 266 of 321 TABLE OF CONTENTS Page 267 of 321 Page Paye INTRODUCTION 1 GENERAL AND ECONOMIC INFORMATION 28 Population.------------------------------------------------------------- 28 DESCRIPTION OF THE BONDS____________________________ 1 Largest Employers ___________________________________________________ 28 General ------------------------------------------------------------------ 1 Economic Data ------------------------------------------------------- 29 Bond Registrar and Registration __________________________________ 1 Redemption Provisions and Purchase of Bonds______________ 2 TAX MATTERS _ -_ 30 Failure to Redeem Bonds .------------------------------------------ 3 Tax Exemption------------------------------------------------------- 30 Refunding or Defeasance .__________________________________________ 3 Certain Other Federal Tax Consequences ____________________ 31 Preservation of Tax Exemption _________________ ______________ 32 PURPOSE AND USE OF PROCEEDS 4 Purpose------------------------------------------------------------------ 4 RATING----------------------------------------------------------------- 32 Sources and Uses of Proceeds 4 Refunding Plan ________________________________________________________ 5 CONTINUING DISCLOSURE --------------------------------- 32 SECURITY FOR THE BONDS 6 CERTAIN INVESTMENT CONSIDERATIONS 34 Pledge of Revenue and Lien Position ___________________________ 6 Rate Covenant and Coverage Requirement ___________________ 6 INITIATIVE AND REFERENDUM ------------------------ 34 Bond Fund 7 Reserve Account------------------------------------------------------ 7 LEGAL AND UNDERWRITING-----------------------____-- 34 Flowof Funds--------------------------------------------------------- 8 Approval of Counsel ----------------------------------------------- 34 Additional Covenants of the City ________________________________ 8 Financial Advisor ____________________________________________________ 34 Future Parity Bonds -------------------------------------------------- 9 Litigation --------------------------------------------------------------- 35 Conflicts of Interest 35 WATERWORKS UTILITY UTILITY DEBT INFORMATION,-___- 11 Underwriting__________________________________________________________ 35 Debt Service Requirements ______________________________ _________ 11 Other Waterworks Utility Debt .__________________________________ 11 CONCLUDING STATEMENT.-, ----------------------------- 35 Debt Payment Record ----------------------------------------------- 12 Other Financings----------------------------------------------------- 13 APPENDIX A. CERTAIN DEFINITIONS THE WATERWORKS UTILITY 12 The Water System ____________________________________________________ 12 APPENDIX B. 2014 AUDITED FINANCIAL The Sewer System _________ _________ _________ _________ _________ 14 STATEMENTS The Process Water Reuse Facility ________________________________ 16 The Stormwater Management System __________________________ 17 APPENDIX C. OPINION OF BOND COUNSEL The Irrigation System ._______________________________________________ 18 Capital Improvement Plan 18 APPENDIX D. BOOK -ENTRY SYSTEM Endangered Species Act ____________________________________________ 18 Historic Operating Results _________________________________________ 19 Comparative Statement of Net Position _______________________ 21 CITY PROFILE 22 City Council _ 22 Key Administrative Staff ------------------------------------------- 22 Labor Relations _ 22 Pensions ----------------------------------------------------------------- 23 Other Post -Employment Benefits _______________________________ 24 Risk Management -----------------------------------------------------25 Accounting and Budgeting Process ._____________________________ 25 Auditing of City Finances __________________________________________ 25 Authorized Investments 27 Page 267 of 321 (THIS PAGE INTENTIONALLY LEFT BLAND Page 268 of 321 OFFICIAL STATEMENT CITY OF PASCO, WASHINGTON WATER AND SEWER IMPROVEMENT AND REFUNDING REVENUE BONDS, 2015 INTRODUCTION This Official Statement, including the cover page and any appendices attached hereto, is being distributed by the City of Pasco, Washington (the "City', a municipal corporation duly organized and existing under and by virtue of the laws of the State of Washington (the "State', to furnish information in connection with the issuance and sale by the City of its $ * Water and Sewer Improvement and Refunding Revenue Bonds, 2015 (the "Bonds"). The Bonds are being issued in accordance with the provisions of the Constitution and applicable statutes of the State and pursuant to Ordinance No. (the "Bond Ordinance', passed by the City Council on November 30, 2015. Capitalized terms used herein, if not specifically defined herein, are used as defined in the Bond Ordinance. See APPENDIX A - "CERTAIN DEFINITIONS." DESCRIPTION OF THE BONDS General The Bonds will be issued in the principal amount of $ * and will be dated and bear interest from the date of their initial delivery. The Bonds will mature on the dates and in the principal amounts and will bear interest payable semiannually on each May 1 and November 1, beginning May 1, 2016, at the respective rates as set forth on the inside cover of this Official Statement. Interest on the Bonds will be calculated on the basis of a 360 -day year comprised of twelve 30 -day months. The Bonds will be issued in registered form, as to both principal and interest, initially registered in the name Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"), in the denomination of $5,000 each or any integral multiple thereof within a single maturity ("Authorized Denomination'D. Individual purchases of the Bonds will be made initially in book -entry form only and purchasers will not receive certificates representing their interest in the Bonds purchased. See Appendix D - "BOOK -ENTRY SYSTEM." The Bonds are being issued on a parity with the City's outstanding 2002 Bonds, 2005 Bonds, 2007 Bonds, 2009 Bonds, 2010A Bonds, 2010T Bonds, 2013A Bonds and 2013T Bonds (the "Outstanding Parity Bonds" and, together with the Bonds and any Future Parity Bonds, the "Parity Bonds"). A portion of the Outstanding Parity Bonds may be refunded in accordance with the Refunding Plan. See "PURPOSE AND USE OF PROCEEDS — Refunding Plan." The Bonds are not general obligations of the City, and neither the full faith and credit nor the taxing power of the City, Franklin County, the State of Washington or any political subdivision thereof is pledged for the payment of the principal of or interest on the Bonds. Bond Registrar and Registration Features Bond Registrar. The State's fiscal agent, currently U.S. Bank National Association (the "Bond Registrar"), will authenticate the Bonds and act as the paying agent and registrar for the purpose of paying the principal of and interest on the Bonds, recording the purchase and registration, exchange or transfer, and payment of Bonds and performing the other respective obligations of the paying agent and registrar. No resignation or removal of the Bond Registrar shall become effective until a successor has been appointed and has accepted the duties of Bond Registrar. Book Entiy System. The Bonds will be issued as fully registered bonds and, when issued, will be initially registered in the name of Cede & Co., as the nominee of DTC. DTC will act as initial securities depository for the Bonds. Individual purchases and sales of the Bonds may be made in book -entry form only in Authorized Denominations. * Pmliminag, subject to change. Page 269 of 321 So long as the Bonds are in book -entry only form, principal of and interest on the Bonds will be payable as required by the operational arrangements DTC referenced in the Blanket Issuer Letter of Representations between the City and DTC, dated August 31, 1998 (the "Letter of Representations"). The Beneficial Owners will not receive certificates representing their interest in the Bonds (see Appendix D attached hereto). The City makes no representation as to the accuracy or completeness of the information in Appendix D provided by DTC. Purchasers of the Bonds should confirm this information with DTC or its broker-dealer participants. No Book -Entry System. During any period in which the Bonds are not in book -entry only form, principal of and interest on the Bonds will be payable by the Bond Registrar. Interest on the Bonds will be payable by check mailed to the Registered Owners, at the addresses appearing on the Bond Register on the 15f day of the month preceding an interest payment date or by electronic transfer on the interest payment date. The City is not required to make electronic transfers except to a Registered Owner of the Bonds pursuant to a request in writing (and at the sole expense of that Registered Owner) received at least 15 days before an interest payment date. Principal of the Bonds will be payable upon presentation and surrender of the Bond by the Registered Owner to the Bond Registrar. Procedure in the Event of Revisions of Book -Entry System. If (i) DTC resigns as the securities depository and the City does not appoint a substitute securities depository, or (ii) the City terminates the services of DTC, the City will execute, authenticate and deliver at no cost to the Beneficial Owners of the Bonds or their nominees, Bonds in fully registered form, in Authorized Denominations. Transfer and Exchange of Bonds. The Bonds will be subject to transfer and exchange as provided in the Bond Ordinance. Redemption Provisions and Purchase of Bonds Optional Redemption. The Bonds maturing in the years 20_ through 20_, inclusive, are not subject to redemption prior to their stated maturity dates. The Bonds maturing on or after May 1, 20_ are subject to redemption prior to their stated maturity dates, at the option of the City, at any time on or after 1, 20_ as a whole or in part at par plus accrued interest to the date fixed for redemption. Mandatory Redemption. The Bonds maturing on May 1, 20_ are term bonds (the "Term Bonds', and, if not optionally redeemed or purchased, will be called for redemption at a price equal to the principal amount to be redeemed plus accrued interest, if any, to the date fixed for redemption on May 1 in the years and principal amount as follows: Term Bonds Redemption Date Principal (May 1) Amount 20 20 (1) Final maturity. Redemption Date Principal (May 1) Amount 20 20_(1) Selection of Bonds for Redemption. If fewer than all of the outstanding Bonds are to be redeemed at the option of the City, the City will select the maturities to be redeemed. For as long as the Bonds are in book -entry only form, if fewer than all of the Bonds of a maturity are called for redemption, the selection of Bonds within a maturity to be redeemed will be made by DTC in accordance with its operational procedures then in effect. See Appendix D attached hereto. If the Bonds are no longer held in book -entry only form, then the Bond Registrar would select Bonds for redemption randomly within a maturity in such manner as the Bond Registrar determines. Partial Redemption. All or a portion of the principal amount of any Bond that is to be redeemed may be redeemed in any Authorized Denomination. If less than all of the outstanding principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there will be issued to the person in whose name a Bond is registered (the "Registered Owner"), without charge a new Bond (or Bonds, at the option of the Registered Owner) of the same maturity and interest rate in any Authorized Denomination in the aggregate principal amount remaining unredeemed. Notice of Redemption (Book -Entry). So long as the Bonds are in book -entry only form, notice of any redemption of Bonds will be given as required by the Letter of Representations. Page 270 of 321 Notice of Redemption (No Book Entry). During any period in which the Bonds are not in book -entry only form, unless waived by any Registered Owner of the Bonds to be redeemed, official notice of any redemption of Bonds will be given by the Bond Registrar on behalf of the City by mailing a copy of an official redemption notice by first class mail, postage prepaid, at least 20 days and not more than 60 days prior to the date fixed for redemption, to the Registered Owners of the Bonds to be redeemed at the address shown on the books or records maintained by the Bond Registrar for the purpose of identifying ownership of the Bonds (the "Bond Register") on the date the Bond Registrar sends the notice, and such requirement will be satisfied when notice has been mailed as so provided, whether or not it is actually received by the Registered Owner or Beneficial Owner. Conditional Notice of Redemption. In the case of an optional redemption, the notice of redemption may state that the City retains the right to rescind the redemption notice and the redemption by giving a notice of rescission to the affected Registered Owners at any time on or prior to the date fixed for redemption. Any notice of optional redemption that is so rescinded will be of no effect, and each Bond for which a notice of redemption has been rescinded will remain outstanding. Effect of Redemption. Interest on each Bond called for redemption will cease to accrue on the date fixed for redemption, unless either the notice of optional redemption is rescinded, or money sufficient to effect such redemption is not on deposit in the City's Water and Sewer Revenue and Refunding Bond Redemption Fund, 1991 (the "Bond Fund") or in a trust account established to refund or defease the Bond. Purchase of Bonds. The City has reserved the right to purchase any or all of the Bonds offered to the City at any time at any price acceptable to the City plus accrued interest to the date of purchase. Failure to Pay Bonds If the principal of any Bond is not paid when the Bond is properly presented at its maturity or date fixed for redemption, as applicable, the City will be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund, or in a trust account established to refund or defease the Bond, and the Bond has been called for payment by giving notice of that call to the Registered Owner. Refunding or Defeasance The City may issue refunding bonds pursuant to State law or use money available from any other lawful source to carry out a refunding or defeasance plan, which may include (a) paying when due the principal of and interest on any or all of the Bonds (the "defeased Bonds'; (b) redeeming the defeased Bonds prior to their maturity; and (c) paying the costs of the refunding or defeasance. If the City sets aside in a special trust fund or escrow account irrevocably pledged to that redemption or defeasance (the "trust account") money and/or "government obligations" (as defined by chapter 39.53 Revised Code of Washington ("RCW'�, as now in effect or hereafter amended) maturing at a time or times and bearing interest in amounts sufficient to redeem, refund or defease the defeased Bonds in accordance with their terms, then all right and interest of the owners of the defeased Bonds in the covenants of the Bond Ordinance and in the funds and accounts obligated to the payment of the defeased Bonds will cease and become void. Thereafter, the owners of defeased Bonds will have the right to receive payment of the principal of and interest on the defeased Bonds solely from the trust account and the defeased Bonds will be deemed no longer outstanding. In that event, the City may apply money remaining in any fund or account (other than the trust account) established for the payment or redemption of the defeased Bonds to any lawful purpose. Unless otherwise specified by the City in a refunding or defeasance plan, notice of refunding or defeasance will be given, and selection of Bonds for any partial refunding or defeasance will be conducted, in the manner prescribed in the Bond Ordinance for the redemption of Bonds. As currently defined in RCW 39.53.010(4), "government obligations" means (a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America and bank certificates of deposit secured by such obligations; (b) bonds, debentures, notes, participation certificates or other obligations issued by the Banks for Cooperatives, the Federal Intermediate Credit Bank, the Federal Home Loan Bank System, the Export -Import Bank of the United States, federal land banks or the Federal National Mortgage Association; (c) public housing bonds and project notes fully secured by contracts with the United States; and (d) obligations of financial institutions insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, to the extent insured or guaranteed as permitted under any other provision of State law. Page 271 of 321 PURPOSE AND USE OF PROCEEDS Purpose The proceeds from the sale of the Bonds will be used (a) to pay costs of construction of additions to the City's sewage treatment facility and sewer line extensions, (b) to refund certain outstanding water and sewer revenue bonds of the City (the "Refunded Bonds' (see "Refunding Plan" below), (c) fund an increase in the required balance in the reserve account in the Bond Fund (the "Reserve Account") and (d) to pay the costs of issuance of the Bonds. Sources and Uses of Proceeds* The proceeds of the Bonds are estimated to be applied as follows: Sources Principal Amount Original Issue Premium Total Sources Uses Project Costs Deposit to Refunding Account Deposit to Reserve Account Costs of Issuance(l) Total Uses (1) Includes bond counsel fee, rating fee, underwriter's discount, financial advisor fee, rating agency fees, Refunding Trustee fees, verification agent fees, printing and mailing costs of the Preliminary Official Statement and Official Statement, and other expenses associated with the issuance of the Bonds. * Preliminary, subject to change. (REMAINDER OF PAGE INTENTIONALLY LEFT BLAND Page 272 of 321 Refunding Plan* Based on market conditions, all or a portion of the following bonds (the "Refunding Candidates' will be refunded with a portion of the proceeds of the Bonds. The Refunding Candidates refunded with proceeds of the Bonds will be the Refunded Bonds. REFUNDING CANDIDATES* (1) Partial refunding of the 2022 Term Bond. The 2018 through 2022 sinking fund maturities are being refunded. The sinking fund maturity due in 2017 in the amount of $50,000 is not callable. * Preliminary, subject to change. Upon the delivery of the Bonds, the City will enter into a Refunding Trust Agreement with U.S. Bank National Association, as Refunding Trustee, to provide for the refunding of the Refunded Bonds. The Refunding Trust Agreement creates an irrevocable trust fund to be held by the Refunding Trustee and to be applied solely to the payment of the Refunded Bonds. The proceeds of the Bonds will be deposited with the Refunding Trustee and will be invested in noncallable direct obligations of the United States of America (referred to herein as "Acquired Obligations'D that will mature and bear interest at rates sufficient, together with cash held by the Refunding Trustee, if necessary, to pay the principal of and accrued interest coming due up to and including the call date of the Refunded Bonds (the "Refunding Plan'. The money and Acquired Obligations and earnings thereon will be held solely for the benefit of the Registered Owners of the Refunded Bonds. The mathematical accuracy of the (1) computations of the adequacy of the maturing principal amounts of and interest on the Acquired Obligations and beginning cash balances, if necessary, to be held by the Refunding Trustee to pay principal of and interest on the Refunded Bonds as described above, and (2) the computations supporting the conclusion of Bond Counsel that the Bonds are not "arbitrage bonds" under Section 148 of the Code, will be verified by , independent certified public accountants. 5 Page 273 of 321 Maturity Principal Interest Call Date CUSIP No. Bond Date Amounts Rates (at 100%) (702571) 2002 Bonds Serial 12/01/19 $370,000 4.375% 01/16/16 JY7 Serial 12/01/20 385,000 4.450 01/16/16 JZ4 Serial 12/01/21 405,000 4.600 01/16/16 KA7 $1,160,000 2005 Bonds Serial 09/01/16 $215,000 4.000% 01/16/16 KN9 Serial 09/01/17 225,000 4.000 01/16/16 KP4 Serial 09/01/18 235,000 4.000 01/16/16 KQ2 Serial 09/01/19 245,000 4.000 01/16/16 KRO Serial 09/01/20 255,000 4.000 01/16/16 KS8 Serial 09/01/21 265,000 4.000 01/16/16 KT6 Serial 09/01/22 275,000 4.000 01/16/16 KU3 Serial 09/01/23 285,000 4.150 01/16/16 KV1 Serial 09/01/24 295,000 4.200 01/16/16 KW9 Serial 09/01/25 310,000 4.250 01/16/16 KX7 $2,605,000 2007 Bonds Term 09/01/22(1) $265,000 4.750% 09/01/17 LJ7 $265,000 Total $4,030,000 (1) Partial refunding of the 2022 Term Bond. The 2018 through 2022 sinking fund maturities are being refunded. The sinking fund maturity due in 2017 in the amount of $50,000 is not callable. * Preliminary, subject to change. Upon the delivery of the Bonds, the City will enter into a Refunding Trust Agreement with U.S. Bank National Association, as Refunding Trustee, to provide for the refunding of the Refunded Bonds. The Refunding Trust Agreement creates an irrevocable trust fund to be held by the Refunding Trustee and to be applied solely to the payment of the Refunded Bonds. The proceeds of the Bonds will be deposited with the Refunding Trustee and will be invested in noncallable direct obligations of the United States of America (referred to herein as "Acquired Obligations'D that will mature and bear interest at rates sufficient, together with cash held by the Refunding Trustee, if necessary, to pay the principal of and accrued interest coming due up to and including the call date of the Refunded Bonds (the "Refunding Plan'. The money and Acquired Obligations and earnings thereon will be held solely for the benefit of the Registered Owners of the Refunded Bonds. The mathematical accuracy of the (1) computations of the adequacy of the maturing principal amounts of and interest on the Acquired Obligations and beginning cash balances, if necessary, to be held by the Refunding Trustee to pay principal of and interest on the Refunded Bonds as described above, and (2) the computations supporting the conclusion of Bond Counsel that the Bonds are not "arbitrage bonds" under Section 148 of the Code, will be verified by , independent certified public accountants. 5 Page 273 of 321 SECURITY FOR THE BONDS Pledge of Revenue and Lien Position The Net Revenue of the Waterworks Utility and ULID Assessments are pledged to the payment of the principal of and interest on the Bonds when due and shall constitute alien and charge upon that Net Revenue of the Waterworks Utility and ULID Assessments prior and superior to any other charges whatsoever, except that the lien and charge upon such Net Revenue and ULID Assessments for the Bonds shall be on a parity with the lien and charge thereon for any outstanding Parity Bonds. Utility Local Improvement Districts The City currently has three utility local improvement districts ("ULIDS") with assessments currently outstanding that have been pledged to the Bond Fund for payment of Parity Bonds. The City may create ULIDs in the future and may issue Future Parity Bonds to finance improvements within a ULID, consistent with the Parity Conditions described above. The term "ULID assessments" (not capitalized) is used in this document to refer generically to any assessments in a ULID, whether or not such assessments are pledged to the Bond Fund. If capitalized ("ULID Assessments', the term refers specifically to assessments that have been pledged to the Bond Fund for payment of Parity Bonds. In General. Under State law the City may establish ULIDs and may levy special assessments to pay in whole or in part the costs of any improvements within the ULID, under a mode of annual installments on all property specially benefited by any local improvement, with the amount of the assessment based on the special benefit to each parcel within the ULID. The City must permit each property owner to pay its assessment in full within a 30 day prepayment period and to pay the remaining outstanding balance in annual installments of principal and interest. Lien of Assessments. ULID assessments constitute a lien on the property assessed from the time the City places the assessment roll in the hands of the county treasurer for collection. The interest and penalties are included in and become a part of the assessment lien. State law provides that an assessment lien is paramount to all other liens, except the lien for general property taxes and the homestead exemption. Under State law, the homestead exemption permits any head of a family to protect a certain portion of the homestead (residence) from forced sale. In 1982, the Washington State Court of Appeals held, in City of Algona P. Sharp, et al., that the filing for a homestead exemption before a scheduled foreclosure sale of residential property valued at less than the statutory homestead exemption (currently $125,000) effectively exempted that property from a forced sale to enforce delinquent special assessments in a special benefit assessment district such as a local improvement district or utility local improvement district. Foreclosure of Assessments. The manner in which delinquent ULID assessments may be foreclosed is set forth in detail in State law. Foreclosure proceedings may be initiated if on the first day of January two installments of any assessment are delinquent, or if the final installment has been delinquent for more than one year. Property foreclosed upon is sold by the county, and the laws governing appeals from general tax foreclosure judgments apply similarly to appeals from judgments obtained in a local improvement assessment lien foreclosure action. Proceeds of the sale of any property foreclosed upon in the manner required by law, up to the amount of the unpaid assessment and interest and penalties thereon, are deposited into and become a part of the Bond Fund. Rate Covenant and Coverage Requirement So long as any Parity Bonds are outstanding, the City has covenanted in the Bond Ordinance that it will maintain and collect such rates as will produce sufficient Net Revenue of the Waterworks Utility, together with ULID Assessment collections, as will make available for the payment of the principal of and interest on the Parity Bonds as they come due and for payments as required to be made into the Reserve Account an amount at least equal to the Coverage Requirement and, in addition thereto, that it will pay all Operating and Maintenance Expenses and otherwise meet the obligations of the City as set forth in the Bond Ordinance. "Coverage Requirement" in any year means an amount of Net Revenue of the Waterworks Utility, together with the ULID Assessments collected in that year, equal to at least the Maximum Annual Debt Service on all Assessment Bonds plus an amount of the Net Revenue of the Waterworks Utility not used to calculate the Coverage Requirement on Assessment Bonds equal to at least 1.25 times Maximum Annual Debt Service on all bonds payable from the Bond Fund that are not Assessment Bonds. Page 274 of 321 Bond Fund The Bond Fund has been previously created and established a special fund of the City known and designated as the Water and Sewer Revenue and Refunding Bond Redemption Fund, 1991, which fund has been divided into two accounts, namely, the Principal and Interest Account and the Reserve Account. So long as any Parity Bonds are outstanding against the Bond Fund, the Deputy Director shall set aside and pay into the Bond Fund all ULID Assessments upon their collection and, out of the Net Revenue of the Waterworks Utility, certain fixed amounts without regard to any fixed proportion, namely, amounts, together with any ULID Assessments collected by the City and deposited into the applicable account in the Bond Fund and investment earnings in that account, as follows: a) Into the Principal and Interest Account, on or before each interest or principal and interest payment date, an amount equal to the interest or the principal and interest to become due and payable on that interest or principal and interest payment date of all Parity Bonds; and b) Into the Reserve Account, on the issue date of the Bonds, an amount sufficient, together with the Reserve Insurance, to fully fund the Reserve Requirement for all Parity Bonds. Money deposited in the Reserve Account for the Reserve Requirement for all Parity Bonds may be decreased for any issue of Parity Bonds when and to the extent the City has provided for an Alternate Security or Reserve Insurance for those bonds. The City may establish additional accounts in the Bond Fund for the deposit of ULID Assessments after the deposit of the required amount in the other funds. If the City shall fail to set aside and pay into the Bond Fund the amounts which it has obligated itself by the Bond Ordinance to set aside and pay therein, the owner of any Bond may bring suit against the City to compel it to do SO. Reserve Account The Reserve Account for any Future Parity Bonds may be accumulated from any other funds which the City legally may have available for such purpose in addition to using ULID Assessments and Net Revenue of the Waterworks Utility. When the required amounts have been paid into the Reserve Account in the Bond Fund, the City will maintain those amounts therein at all times, except for withdrawals therefrom as authorized in the Bond Ordinance, until there is sufficient money in the Bond Fund, including the Reserve Account therein, to pay the principal of and interest to maturity on all outstanding bonds payable from the Bond Fund, at which time no further payments need be made into the Bond Fund, and the money in the Bond Fund, including the Reserve Account, may be used to pay that principal and interest. If there shall be a deficiency in the Principal and Interest Account to meet maturing installments of either principal or interest, as the case may be, on the Bonds, the deficiency shall be made up from the Reserve Account by first the withdrawal of cash and investments therefrom and after all cash and investments have been depleted, then by the draws on the Reserve Insurance for that purpose on a pro rata basis. Any deficiency created in the Reserve Account by reason of any withdrawal shall then be made up from the Net Revenue of the Waterworks Utility first available after making necessary provisions for the required payments into the Principal and Interest Account. The Reserve Insurer shall be reimbursed first, within one year, to reinstate the Reserve Insurance, before the balance of the Reserve Requirement is restored. All money in the Reserve Account not needed to meet the payments of principal and interest when due may be kept on deposit in the official bank depository of the City or in any national bank or may be invested in any legal investment for City funds maturing not later than the interest or principal and interest payment date when the money will be needed. Interest on any of those investments or on that bank account shall be deposited in and become a part of the Reserve Account until the Reserve Requirement shall have been accumulated therein, after which time the interest shall be deposited in the Principal and Interest Account. Notwithstanding the provisions for the deposit or maintenance of earnings in accounts of the Bond Fund, any earnings which are subject to a federal tax or rebate requirement may be withdrawn from the Bond Fund for deposit into a separate fund or account for that purpose. Page 275 of 321 The City currently has in place, to meet a portion of the Reserve Requirement for Parity Bonds, a surety bond issued by Ambac Assurance Corporation ("Ambac' in the amount of $2,108,930, which expires in 2019. Ambac is currently rated Caa2 by Moody's Investors Service Inc. and Standard & Poor's Ratings Services withdrew its rating in November 2010. The City also currently has $1,470,497 of cash and investments in the Reserve Account. In anticipation of the expiration of the Ambac surety bond, the City will use ten percent of the proceeds of the Bonds to increase the amount of cash and investments in the Reserve Account to approximately $ Further, the City will make additional payments into the Reserve Account, or obtain a new surety bond, as required to replace the Ambac surety bond prior to its expiration in 2019. See Appendix A — "CERTAIN DEFINITIONS" for a definition of the Reserve Requirement. Flow of Funds Funds in the Water and Sewer Revenue Fund shall be used in the following order of priority: a) To pay Operating and Maintenance Expenses; b) To make all payments required to be made into the Bond Fund to pay and secure the payment of the Annual Debt Service on all outstanding Parity Bonds; c) To make all payments required to be made into the Reserve Account and to make all payments (principal and interest) required to be made in connection with Reserve Insurance and any Alternate Security, except if there is not sufficient money to make all payments for Reserve Insurance and any Alternate Security, the payments shall be made on a pro rata basis with deposits in the Reserve Account. d) To make all payments required to be made into the loan redemption funds or accounts, and other revenue bond redemption funds created to pay the debt service on any revenue obligation having alien upon the Net Revenue of the Waterworks Utility subordinate to the lien of the Bonds; and e) To make necessary additions, betterments, improvements or repairs to the Waterworks Utility, and to retire by redemption or purchase any outstanding Parity Bonds, or for any other lawful purpose. Additional Covenants of the City The City has further covenanted and agreed with the Owner of each of the Bonds as follows: a) It will not sell, lease, mortgage, or in any manner encumber or dispose of all the properties of the Waterworks Utility unless provision is made for payment into the Bond Fund of an amount sufficient either to defease all outstanding Parity Bonds or to pay the principal of and interest on all the outstanding Parity Bonds in accordance with the terms thereof; and further binds itself irrevocably not to mortgage, sell, lease or in any manner dispose of any part of the Waterworks Utility that is used, useful and material to the operation of such utility unless provision is made for replacement thereof or for payment into the Bond Fund of an amount which shall bear the same ratio to the amount of outstanding Parity Bonds as the Net Revenue available for debt service for such bonds for the twelve months preceding such b) sale, lease, encumbrance or disposal from the portion of the Waterworks Utility so leased, encumbered or disposed of bears to the Net Revenue available for debt service for such bonds from the entire Waterworks Utility for the same period. Any such money so paid into the Bond Fund shall be used to retire outstanding Parity Bonds at the earliest possible date. c) It will maintain and keep the Waterworks Utility in good repair, working order and condition and operate such utility and the business in connection therewith in an efficient manner and at a reasonable cost. d) It will keep proper books of accounts and records separate and apart from other accounts and records, in which complete and correct entries will be made of all transactions relating to the Waterworks Utility of the City, and it will make available to any Owner on written request the annual operating and income statements of the Waterworks Utility. e) Except to aid the poor or infirm, to provide for resource conservation or to provide for the proper handling of hazardous materials, it will not furnish water or sewerage service to any customer whatsoever free of charge and it will, not later than 60 days after the end of each calendar year, take such legal action as may be feasible to enforce collection of all collectible delinquent accounts and, in addition thereto, will promptly avail itself of its utility lien rights, as set forth in applicable statutes. Page 276 of 321 f) It will carry the types of insurance on its Waterworks Utility properties in the amounts normally carried by private water and sewer companies engaged in the operation of water and sewerage systems, and the cost of such insurance will be considered a part of Operating and Maintenance Expenses, or it will implement and maintain a self-insurance program or an insurance pool program with reserves adequate, in the judgment of the City Council, to protect the owners of the Parity Bonds against loss. g) To the extent permitted by State law, it will maintain its corporate identity and existence so long as any Bonds remain outstanding. h) It will not grant any competing utility service franchise and will use all legal means to prevent competition with the Waterworks Utility. i) If on the first day of January in any year, two installments of any ULID Assessment are delinquent, or the final installment of any ULID Assessment has been delinquent for more than one year, the City will proceed with the foreclosure of the delinquent assessment or delinquent installments thereof in the manner provided by law. Future Parity Bonds The City has reserved the right to issue Future Parity Bonds if the following conditions are met and complied with at the time of the issuance of those Future Parity Bonds: a) There shall be no deficiency in the Bond Fund. b) The ordinance providing for the issuance of the Future Parity Bonds shall provide that all ULID Assessments shall be paid directly into the Bond Fund, except for any prepaid assessments permitted by law to be paid into a construction fund or account. c) The ordinance providing for the issuance of such Future Parity Bonds shall provide for the deposit into the Reserve Account of (i) an amount equal to the Reserve Requirement for those Future Parity Bonds from the Future Parity Bond proceeds, or (ii) Reserve Insurance or Alternate Security or an amount plus Reserve Insurance or Alternate Security equal to the Reserve Requirement for those Future Parity Bonds, or (iii) to the extent that the Reserve Requirement is not funded from Future Parity Bond proceeds or Reserve Insurance or Alternate Security at the time of issuance of those Future Parity Bonds, by no later than the fifth anniversary date from the dated date of the respective issue of Future Parity Bonds from ULID Assessments, if any, levied and first collected for the payment of the principal of and interest on those Future Parity Bonds and, to the extent that ULID Assessments are insufficient, then from the Net Revenue of the Waterworks Utility in approximately equal annual payments, the Reserve Requirement for those Future Parity Bonds. No Reserve Insurance or Alternate Security may be used to satisfy the Reserve Requirement for Future Parity Bonds unless (i) the insurance policy or Alternate Security is non- cancelable and (ii) the insurer or provider of the Alternate Security as of the time of issuance of such insurance or Alternate Security is rated in the highest rating categories by both Moody's Investors Service, Inc., and Standard & Poor's Ratings Services. d) The ordinance authorizing the issuance of such Future Parity Bonds shall provide for the payment of mandatory redemption or sinking fund requirements into the Bond Fund for any Term Bonds to be issued and for regular payments to be made for the payment of the principal of such Term Bonds on or before their maturity, or, as an alternative, the mandatory redemption of those Term Bonds prior to their maturity date from money in the Principal and Interest Account. e) There shall be on file from a licensed professional engineer experienced in the design, construction and operation of municipal utilities, or from an independent certified public accountant, a certificate showing that in his or her professional opinion the Net Revenue of the Waterworks Utility for any 12 consecutive calendar months out of the immediately preceding 24 calendar months shall be equal to the Coverage Requirement for each year thereafter, except that such certificate may be provided by a City representative if it is based solely upon actual historical Net Revenue of the Waterworks Utility without any adjustment. The certificate, in estimating the Net Revenue of the Waterworks Utility available for debt service, shall use the historical Net Revenue of the Waterworks Utility for any 12 consecutive months out of the 24 months immediately preceding the month of delivery of the Future Parity Bonds. Net Revenue of the Waterworks Utility may be adjusted to reflect: Page 277 of 321 1) Any changes in rates in effect and being charged or expressly adopted by ordinance to take effect within 180 days after the date of the Certificate; 2) Income derived from customers of the Waterworks Utility that have become customers during the 12 consecutive month period or thereafter adjusted to reflect one year's net revenue from those customers; 3) Revenue from any customers to be connected to the Waterworks Utility who have paid the required connection charges; 4) Revenue received or to be received which is derived from any person, firm, corporation or municipal corporation under any executed contract for water, sewage disposal or other utility service, which revenue was not included in the historical Net Revenue of the Waterworks Utility; 5) The engineer's or accountant's estimate of the Net Revenue of the Waterworks Utility to be derived from customers to connect within 180 days after the date of the completion of the additions to and improvements and extensions of the Waterworks Utility to be paid for out of the proceeds of the sale of the additional Future Parity Bonds or from other additions to and improvements and extensions of the Waterworks Utility then under construction and not fully connected to the facilities of the Waterworks Utility when such additions, improvements and extensions are completed; and 6) Any increases or decreases in Net Revenue as a result of any actual or reasonably anticipated changes in Operating and Maintenance Expense subsequent to the 12 month period. In connection with the Bonds, the City will provide a certificate executed by a City representative. If Future Parity Bonds proposed to be so issued are for the sole purpose of refunding outstanding bonds payable from the Bond Fund, such certification of coverage shall not be required if the amount required for the payment of the principal and interest in each year for the refunding bonds is not increased over the amount for that year required for the bonds to be refunded thereby and if the maturities of such refunding bonds are not extended beyond the maturities of the bonds to be refunded thereby. Nothing contained in the Bond Ordinance shall prevent the City from issuing Future Parity Bonds to refund any maturing Parity Bonds then outstanding, money for the payment of which is not otherwise available. Nothing contained in the Bond Ordinance shall prevent the City from issuing revenue bonds or incurring other obligations that are a charge upon the Net Revenue of the Waterworks Utility of the City subordinate or inferior to the payments required to be made therefrom into the Bond Fund for the payment of Parity Bonds or from pledging the payment of utility local improvement district assessments into a redemption fund created for the payment of the principal of and interest on those subordinate lien bonds or obligations as long as such utility local improvement district assessments are levied for improvements constructed from the proceeds of those subordinate lien bonds or obligations. 10 Page 278 of 321 WATERWORKS UTILITY DEBT INFORMATION Debt Service Requirements Annual debt service requirements for the Outstanding Parity Bonds and the Bonds are presented in the following table. The table does not include the Refunded Bonds. Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 WATERWORKS UTILITY DEBT SERVICE SCHEDULE (1) OUTSTANDING PARITY BONDS' THE BONDS* Assessment Bonds Principal Interest Non -Assessment Bonds Principal Interest Non -Assessment Bonds Principal Interest TOTAL (1) All Bonds are Parity Bonds. Assessment Bonds and Non -Assessment Bonds are shown separately for analysis purposes only. * Preliminary, sulyea to change Other Waterworks Utility Debt In addition to the Outstanding Parity Bonds, the City has loans outstanding in the combined total principal amount of $6,388,921, as of November 1 2015, from the State Department of Ecology ("Bcology'� State Revolving Fund Loan program ("SRF Loan'. The next payment will be due in January 2016. The lien of the SRF Loan on Net Revenue is subordinate to the lien of the Parity Bonds on Net Revenue. The City has used money obtained from the SRF Loan to upgrade the City's wastewater treatment facility, construct an interceptor and pumping station serving West Pasco, and an interceptor serving the eastern part of the central business district. The City has established a cash -funded reserve for the subordinate SRF Loan equal to one year's debt service which is $1,719,955.30. [If the City defaults in its payments on the SRF Loan, Ecology would have the option to declare the principal and interest on the loan immediately payable, in addition to other remedies specified in the SRF Loan agreement.] [Ecology has been asked to delete this acceleration provision.] The City also has two Public Works Trust Fund Loans from the State Public Works Board outstanding in the combined principal amount of $7,366,131 as of November 1, 2015. The lien of these Public Works Trust Fund Loans on Net Revenue is subordinate to the lien of the Parity Bonds on Net Revenue. [If the City defaults in its payments the Public Works Trust Fund Loan that is outstanding in the principal amount of $555,701, the Public Works Board would have the option to declare the principal and interest on the affected loan(s) immediately payable, in addition to other remedies specified in the Public Works Trust Fund Loan agreements.] [The Public Works Board has been asked to delete this acceleration provision.] 11 Page 279 of 321 Debt Payment Record The City has always promptly met principal and interest payments on outstanding bonds, notes and warrants when due. No refunding bonds have been issued or other debt received for the purpose of preventing an impending default. Other Financings The City does not anticipate issuing additional water and sewer revenue bonds within the next 18 months. THE WATERWORKS UTILITY The Waterworks Utility's primary activity is the operation and maintenance of a domestic water system which supplies and distributes potable water and water for fire protection purposes for City residents (the "Water System', a sanitary system which collects sanitary sewage and delivers it to a municipal sewage treatment facility (the "Sewer System"), a stormwater management system to manage surface and stormwater and delivery to the City's stormwater facilities (the "Stormwater System"), an irrigation system for residential landscaping (the "Irrigation System's and a process water reuse facility for food preparation process wastewater (the "Process Water Reuse Facility'. The City owns and operates the Waterworks Utility as a separate enterprise fund that provides water and/or sewer service to virtually all of the City's residents. The City operates its Waterworks Utility in compliance with federal and State environmental and health laws. The Water System The Water System receives its water supply from the Columbia River via two intake structures in the river. The intake facilities have multiple pumps with pumping capacity of 24 million gallons per day (mgd) at the Butterfield Plant and 6 mgd at the West Pasco Water Treatment Plant. The raw or untreated water is pumped through four lines to both treatment facilities. The Butterfield water treatment plant was originally constructed in 1949, expanded in 1958, and upgraded and automated in 1987. The treatment plant consists of the following main process components: two flocculation basins, two sedimentation basins, eight dual media filters, a clearwell and five treated water pumps which discharge into the transmission/distribution system. The plant is automated and routinely operates in an unmanned mode 16 hours out of each 24-hour day. The West Pasco Water Treatment Plant (the "WPWTP'� was completed in 2011 and it has been producing water for the City since April of 2011. It consists of the latest technology in water treatment. The raw water is treated through micro filtration which removes impurities to meet or exceed the Department of Health requirements. The plant currently has the capacity of producing 6 mgd; however, the plant has the capacity of 18 mgd when it is expanded in the future to meet the growth needs in West Pasco. The plant infrastructure includes automated sand filtration, two 3 mgd microfiltration racks and a one million gallon clearwell. The plant is automated and can function in automated mode more than 20 hours per day. Present water demands on the Water System can vary from a minimum winter day demand of 4.9 mgd to a peak summer day demand of 24.65 mgd. The year-round average daily flow is 12.69 mgd. The treated water from the metered plant is pumped into the transmission and distribution system which consists of 300 miles of main line varying in size from 6 to 36 inches. The distribution system is divided into three separate zones, with each zone servicing its respective elevation. Storage is provided by one 10 million gallon ground level reservoir, two 1 million gallon reservoirs, and a 2.5 million gallon water tower. 12 Page 280 of 321 Customers and Consumbtion. The City's Water System presently serves approximately 18,300 customers, of which approximately 88% are single-family residential customers. Historical statistics are shown in the following charts. WATER SYSTEM CUSTOMERS Customer Class 2014 2013 2012 2011 2010 Single Family Residential 15,969 15,791 15,612 15,204 14,670 Multi -Family Residential 492 489 468 463 453 Commercial 1,374 1,345 1,321 1,296 1,272 Other (1) 453 444 422 407 402 TOTAL 18,288 18,069 17,823 17,370 16,797 (1) Industrial, Irrigation, the City and schools. ANNUAL CONSUMPTION (1,000 cubic feet) Customer Class 2014 2013 2012 2011 2010 Single Family Residential 283,986 348,730 277,491 277,553 277,955 Multi -Family Residential 44,494 51,205 50,989 60,028 43,924 Commercial 49,618 55,378 57,965 65,329 56,383 Other (1) 202,086 184,057 153,319 102,909 53,853 TOTAL 580,184 639,370 539,764 505,819 432,115 (1) Industrial, Irrigation, the City and schools. LARGEST CUSTOMERS OF THE WATER SYSTEM Customer Pasco Processing Twin City Foods CRF Frozen Foods (£k.a. Bybee) Reser's Fine Foods Grimmway Enterprises Pasco Housing Authority Pasco School District Oregon Potato Company Sundance Mobile Home Park Franklin County TOTAL (1) Consumption in cubic feet, rounded to nearest hundred, based on 2014 water use. Total consumption for 2014 was 597,360,600 cubic feet. (2) Based on 2014 audited Water System total operating revenue of $7,594,091. Does not include connection fees, one-time revenue sources, and revenue raised to pay interfund City utility taxes. Source: The City of Pasco. 13 Page 281 of 321 % of 2014 Water Utility Annual Annual Operating Industry Consumption(l) Revenue Revenue(2) Processing 44,878,000 $305,170 4.02% Processing 33,418,500 227,246 2.99 Processing 22,246,800 151,278 1.99 Processing 15,188,800 103,284 1.36 Processing 7,704,400 52,390 0.69 Government Housing 7,668,900 52,149 0.69 Education 4,397,500 29,903 0.39 Processing 3,772,700 25,654 0.34 Housing 3,604,500 24,511 0.32 Municipal Government 3,560,600 24,212 0.32 146,440,700 $995,797 13.11% (1) Consumption in cubic feet, rounded to nearest hundred, based on 2014 water use. Total consumption for 2014 was 597,360,600 cubic feet. (2) Based on 2014 audited Water System total operating revenue of $7,594,091. Does not include connection fees, one-time revenue sources, and revenue raised to pay interfund City utility taxes. Source: The City of Pasco. 13 Page 281 of 321 Eater Rates and C&Xes. Water rates include a charge for the amount of water used plus a monthly service charge determined by the size of the waterline serving the premises. The following rates and charges went into effect on July 1, 2014. The most recent rate increase by the City prior to the 2014 increase was in 2010. A 5% rate increase is being proposed in the preliminary 2016 Budget based upon recommendations from an external rate study. WATER RATES AND CHARGES Single -Family Residential Size of Service Service Charge 3/4 inch $16.25 1 inch 24.35 Multi -Family Residential & Commercial Size of Service Service Charge 3/4 inch $22.90 1 inch 33.05 1 '/2 inch 64.50 2 inch 103.45 3 inch 141.30 4 inch 203.60 6 inch 317.80 8 inch 440.40 In addition to the monthly service charge, users pay $0.68 per 100 cubic feet of water. A 90% surcharge is added to accounts located outside the City limits. Users qualifying for a senior low income discount receive services at one-third of the normal applicable rate. Rate Comparisons. The following table provides rate comparisons for similar utilities. A one-month period is assumed with a water usage of 1,000 cubic feet and a 3/4 inch meter. This level of usage is representative of single family residential usage with moderate irrigation or lawn watering. COMPARATIVE MONTHLY SINGLE FAMILY RESIDENTIAL WATER SERVICE RATES Single Family Average Number of Connections Monthly Charge (1,000/cf) Daily Flow City Residential Commercial Inside City Outside City (million gal) City of Kennewick 19,951 3,737 21.94 48.57 11.92 City of Pasco 15,969 2,319 23.25 43.78 12.69 City of Richland 16,285 2,194 36.75 n/a 16.44 City of Walla Walla 8,803 1,702 49.90 74.85 9.52 Source. Individual utilities, City of Pasco survey of rates as of October 312015 The Sewer System The City's sewage treatment plant was originally constructed in 1954, upgraded from primary treatment to secondary treatment in 1970, and upgraded to advanced secondary treatment and expanded in 1997. The upgrade in 1997 included a new digester, aeration basins, an ultraviolet disinfection system, and additional drying beds. The plant currently has an average flow of 4.09 mgd, with a peak of 4.85 mgd, and is capable of serving a population of 80,000 people. The Waste Water Treatment Plant (the "WWTP") has capacity of treating up to 7.1 to 7.8 mgd. However, the primary clarifier, which is the initial stage of wastewater treatment, has only 5 mgd capacity. In order to meet the needs of near future growth and peak demands, a second primary clarifier will be constructed with proceeds of the 2013A Bonds. The proposed primary clarifier will add 5 to 7 mgd capacity to the average flows and will meet current and future demands. The City is in the process of completing master plans for the Citywide Sanitary Sewer System. Recommended improvements for the WWTP include capacity improvements to treat wastewater up to 12 mgd in order to meet the projected City growth of 95,000 to 100,000 in the next 15 to 20 years. 14 Page 282 of 321 The sewer collection consists of 240 miles of 8 -inch to 36 -inch diameter collection pipelines. The sewer collection system is being expanded into residential areas currently utilizing septic tanks in which utility local improvement districts are being formed to convert properties from septic tanks to City sewers. The collection system is also being expanded into both the residential and industrial growth areas of the City. Customers and Statistics. The City's Sewer System, which excludes what is treated at the Process Water Reuse Facility, presently serves approximately 15,700 customers, of which 90% are single-family residential customers. SEWER SYSTEM CUSTOMERS Customer Class 2014 2013 2012 2011 2010 Single Family Residential 14,132 13,936 13,746 13,373 12,841 Multi -Family Residential 517 502 454 449 442 Commercial 11079 1,066 969 949 935 TOTAL 15,728 15,504 15,169 14,771 14,218 LARGEST CUSTOMERS OF THE SEWER SYSTEM % of 2014 Sewer Utility Annual Annual Operating Customer Industry Consumption(l) Revenue Revenue(2) Reser's Fine Foods Processing 14,888,400 $37,144 0.63% Grimmway Enterprises Processing 7,704,400 99,910 1.69% Pasco School District Education 2,167,600 36,211 0.61% Franklin County Municipal Government 2,113,500 30,600 0.52% City of Pasco Municipal Government 2,070,050 34,772 0.59% Port of Pasco Industrial 1,871,900 26,488 0.45% Oxarc Manufacturing 1,522,372 21,214 0.36% RL Pasco LLC Hospitality 1,421,300 36,442 0.62% Lourdes Medical Center Health 1,342,200 19,088 0.32% Balcom & Moe Processing 1,314,300 17,445 0.29% 36,416,022 $359,314 6.07% (1) Consumption in cubic feet, rounded to nearest hundred, based on 2014 water use. Total consumption for 2014 was 72,496,000 cubic feet.. (2) Based on 2014 audited Sewer System total operating revenue of $5,914,671. Does not include connection fees, one-time revenue sources, and revenue raised to pay interfund City utility taxes. Source: The City of Pasco. Sewer Charges. The following rates and charges were approved on April 26, 2010 and went into effect on July 1, 2010. A 9% sewer rate increase is being proposed in the preliminary 2016 Budget based upon recommendations from an external rate study. SEWER RATES Monthly Customer Class Base Charge Residential dwellings or four units or less $24.80 Residential dwellings more than four units 20.00 Sr. Citizen/Low Income 8.30 Commercial 33.35 Hotel/Motel (per unit) 5.25 Source: The City of Pasco. For commercial users and hotel/motels consuming in excess of 1,000 cubic feet, the overage is charged at $1.29 per 100 cubic feet of water used. A 50% surcharge is added to accounts located outside the City limits. 15 Page 283 of 321 Delinquencies. After notice of delinquency of a water and/or sewer bill is given and the bill remains unpaid, the City staff is directed to cut off water service to the premises and enforce alien upon the property. Such alien is superior to all other liens or encumbrances, except those for general taxes and special assessments. Less than one- half of one percent of water and sewer bills were uncollected by the City in 2014. Bate Coroarisons. The following table provides rate comparisons for similar utilities. A one-month period is assumed with a water usage of 1,000 cubic feet and a 3/a inch meter. Single family residential charges are based on a flat rate and usage is not metered. City City of Kennewick City of Pasco City of Richland City of Walla Walla COMPARATIVE MONTHLY SINGLE FAMILY RESIDENTIAL SEWER SERVICE RATES Number of Connections Residential Commercial 16,008 2,803 14,132 1,596 17,138 1,118 8,392 1,590 Source: Individual utilities City of Pasco surrey of rates as of October 31, 2015. Source: The City of Pasco Single Family Monthly Charge Inside City Outside City $21.22 $31.83 24.80 30.88 25.60 n/a 52.10 78.15 RECENT HISTORICAL WATER AND SEWER RATE CHANGES The Process Water Reuse Facility The Process Water Reuse Facility (the "Facility' was constructed by the City and placed in operation in 1995. The Facility services four food processing plants. The food processing wastewater is pumped and sprayed onto farmland crop circles as the means of disposal. The Facility and processing plants operate year-round, with peak usage in June through September. The Facility originally consisted of two pump stations, pipelines, a 5 million gallon equalization basin and 10 irrigation circles totaling 1,600 acres. In 1997, a 115 million gallon winter storage pond was added. In 2002, four additional circles were added to the operation, increasing the irrigated total to 1,800 acres. The winter storage pond allows food processors at the Pasco Processing Center to operate year round. The food processing users are responsible for payment of the debt service and operation and maintenance costs of the Facility through the rates and charges described below. In 2011 the City completed the optimization master plan to improve the Facility to ensure the City remains compliant with the permit requirements issued by Ecology and to provide increased capacity for process water. In 2013, the City made improvements to the Facility which created 170 million gallons of additional capacity, 110,000 pounds of additional nitrogen capacity and 15,000 pounds/day of additional biological oxygen demand capacity. The expansion meets the currently requested needs of existing processors and does not provide excess capacity to allow for the addition of new customers. 16 Page 284 of 321 Percent Change for In City Service Year Water Sewer 2014 30.00% 0% 2011 0.00% 5.0% reduction 2010 19.0-20.3% 5.0 - 5.6% reduction 2007 0.0% 10.0% reduction 2004 3.9%-4.9% 2.0%-4.0% 2003 4.1%-5.2% 2.0%-4.2% 2000 0.0% 0.0%-4.5% The Process Water Reuse Facility The Process Water Reuse Facility (the "Facility' was constructed by the City and placed in operation in 1995. The Facility services four food processing plants. The food processing wastewater is pumped and sprayed onto farmland crop circles as the means of disposal. The Facility and processing plants operate year-round, with peak usage in June through September. The Facility originally consisted of two pump stations, pipelines, a 5 million gallon equalization basin and 10 irrigation circles totaling 1,600 acres. In 1997, a 115 million gallon winter storage pond was added. In 2002, four additional circles were added to the operation, increasing the irrigated total to 1,800 acres. The winter storage pond allows food processors at the Pasco Processing Center to operate year round. The food processing users are responsible for payment of the debt service and operation and maintenance costs of the Facility through the rates and charges described below. In 2011 the City completed the optimization master plan to improve the Facility to ensure the City remains compliant with the permit requirements issued by Ecology and to provide increased capacity for process water. In 2013, the City made improvements to the Facility which created 170 million gallons of additional capacity, 110,000 pounds of additional nitrogen capacity and 15,000 pounds/day of additional biological oxygen demand capacity. The expansion meets the currently requested needs of existing processors and does not provide excess capacity to allow for the addition of new customers. 16 Page 284 of 321 CUSTOMERS OF THE PROCESS WATER REUSE FACILITY % of 2014 Permitted Actual Total Total Customer Flows(') Flows(l) Revenues Revenues Pasco Processing 383 314 $930,168 42.61% Twin City Foods 220 167 494,707 22.66% CRF (f.k.a.Bybee) 204 157 465,084 21.30% Reser's Fine Foods 115 99 293,270 13.43% Total 923 737 $2,183,229 100.00% (1) Million gallons per year. Bates and Charges. Food processing users are subject to rates and charges established by the City in Ordinance No. 3291 passed on April 6, 1998. This ordinance requires the industrial users connecting to the Facility to pay the following rates and charges, which are subject to annual adjustments. In addition, the City may negotiate a special operation and maintenance or contract rate with individual customers or industrial users of the Facility. Monthly Charges. Base Operation and Maintenance Charges - Actual costs of operating and maintaining the Facility are shared proportionally among all users based on estimated annual flows of each user. The minimum annual charge for each user is $12,000. Customized Operation and Maintenance Charges - The actual costs of operation and maintenance associated with any specifically constructed or customized facility are charged directly to the user(s) based upon actual monthly flows of each during the period. Capital Charges - All capital charges related to all outstanding debt of the Facility are allocated to the users, based on their proportionate share of the total permitted combined annual flows, as determined in each user's discharge permit. The minimum annual capital charge for any user is $12,000 per year. Customized Specific Capital Charges - In addition to the capital charges described above, any capital projects which benefit a single user are directly charged to and paid by such user. For any new customer, a rate will be established which is considered reimbursement of any non -capital charges made by the City for establishment and reservation of excess capacity. The Stormwater Management System The Stormwater System was established by the City in 1999 pursuant to chapter 35.67 RCW and RCW 35A.80.010. Its purpose is to promote public health, safety and welfare by promoting an approach to the management of surface and stormwater runoff created on City streets and delivery to City -owned stormwater facilities. The City's Stormwater System is managed using a ground infiltration process which, after it is treated, meets Ecology's NPDES requirements. The infiltration process applies to approximately 75% of the City. The water runoff from streets for the balance of the City is discharged to the Columbia River. The City has annual program that provides for routine upgrades and catch basin additions as needed. Citywide street sweeping averages eight times per year. The City and cleans catch basins regularly, in compliance with NPDES permits. The City completes annual reports to Ecology on the Stormwater System. Stormwater Rates & Charges. The following monthly rates for the Stormwater System are currently billed to property owners throughout the City using the following general classifications. Between 2002 and 2010 rates were not adjusted. In 2012 rates increased 33.0% and then increased another 13% in 2014. Upon City Council approval, the City anticipates increasing rates upon City Council approval by approximately 12% to be effective January 1, 2015. 17 Page 285 of 321 STORMWATER RATES Customer Class Rate per Month Single Family Residential $4.40 Apartments (per unit for 5 or more) 2.20 Multi -Family Residential (per unit for 1-4 units) 4.40 Undeveloped Parcels 0.00 Vacant Buildings 4.40 Industrial/ Commercial Parking for 0-5 vehicles $4.40 Parking for 6-10 vehicles 8.80 Parking for 11-15 vehicles 13.20 Parking for 16-20 vehicles 17.60 Parking for 21 plus vehicles 22.00 Additional Charges Property runoff to City systems ($1.25 min.) $86.71 /acre State Highway right-of-way 21.71/acre The Irrigation System The Irrigation System was purchased by the City in 2002 from a private utility. At the time of purchase the system serviced approximately 900 customers in an area where new homes were being built. Since the purchase and through expansion of the system, it now services approximately 6,511 residential customers. At the time of purchase, customers were being charged $32 per month for seven months during the irrigation season, April through October. In 2004, after evaluating the increase in customer base and projected annual expenditures, the monthly fee was reduced to $24 per month. Effective January 1, 2011, the base fee was increased to $26.00 per month and that remains the current rate. Capital Improvement Plan The City annually adopts a six-year Capital Improvement Plan ("CIP', which includes a water and sewer system component. The currently adopted CIP includes the following projects. The City Council approved the CIP on September 8, 2015. (Amounts Expressed in Thousands) Project Type 2016 2017 2018 2019 2020 2021 Water Supply, Treatment, $7,860 $5,875 $2,538 $1,211 $4,650 $8,100 Distribution and Storage Sewer Treatment & Collection 10,628 5,631 5,146 10,686 2,297 10,993 Process Water Reuse Facility 8,284 485 2,000 2,000 - - Stormwater Collection 520 300 250 250 250 250 Irrigation 1,675 2,435 200 100 100 100 TOTAL $28,967 $14,726 $10,134 $14,247 $7,297 $19,443 The CIP is a plan. In the preliminary 2016 Budget, being presented to the City Council, a significant portion of the projects listed in the CIP for 2016 have been deferred. Endangered Species Act In planning future projects, the City evaluates the construction and operation of the facilities to determine if there will be any impact on endangered species through the use of site evaluations, special environmental studies, and preparation of State Environmental Policy Act ("SEPA") checklists or environmental impact statements, as appropriate. Alternatives are developed to minimize or avoid impacts on endangered species. Where federal permits or funding are involved, the City also complies with the Endangered Species Act's "consultation" requirement, which serves to evaluate and address any potential effect on endangered species. Best management practices are employed during routine operation and maintenance activities to minimize impacts on the environment. 18 Page 286 of 321 Historical Operating Results The following table presents the 2010 through 2014 audited revenues and expenditures and amended 2015 budgeted revenues and expenditures of the City's Waterworks Utility. This table has been compiled by the City based on the definitions of Gross Revenue and Operating and Maintenance Expenses contained in the Bond Ordinance and reflected in APPENDIX A - CERTAIN DEFINITIONS. These definitions are required by the Bond Ordinance to be used to calculate Debt Service Coverage, emphasize cash flows in the Waterworks Utility, and differ in certain respects from the full accrual definitions of revenue and expenses under Generally Accepted Accounting Principles that are used to report the results of operations of the Waterworks Utility in the City's Audit. WATERWORKS UTILITY HISTORICAL OPERATING RESULTS (As of December 31) Amended Actual Actual Actual Actual Actual Budget 2010 2011 2012 2013 2014 2015 Operating Revenues Water Salcs(i) $5,596,298 $6,797,470 $6,989,958 $7,087,462 $7,594,091 $7,825,921 Irrigation Sales(i) 753,251 874,036 917,076 954,204 1,105,076 1,126,478 Sewer Sales(i) 5,788,397 5,614,564 5,705,414 5,813,572 5,914,671 6,013,794 Stormwater Sales(i) 401,279 867,801 883,305 972,375 1,054,682 1,188,523 Process Water Reuse Sales(i) 1,723,291 1,492,743 1,942,683 1,453,597 1,997,655 1,995,687 Other Utility Charges(2) 3,871,057 1,907,123 1,711,031 1,935,286 2,347,236 2,313,882 Total Operating Revenues $18,133,573 $17,553,737 $18,149,467 $18,216,496 $20,013,411 $20,464,285 Operating & Maintenance Expenses Salaries & Wages $2,518,691 $2,535,882 $2,461,588 $2,599,431 $2,830,832 $3,386,306 Personnel Benefits 892,651 913,062 952,672 1,114,349 1,330,549 1,503,878 Supplies 854,667 1,092,728 855,626 1,121,916 1,492,845 2,128,811 Services(i) 4,477,102 5,193,430 5,293,094 5,749,161 5,890,538 7,156,098 Total Operating Expenses $8,743,111 $9,735,102 $9,562,980 $10,584,857 $11,544,764 $14,175,093 Operating Income $9,390,462 $7,818,635 $8,586,487 $7,631,639 $8,468,647 $6,289,192 Non -Operating Revenue Interest Income $228,784 $116,848 $39,607 $41,009 $15,685 $10,000 Net Farmland Rental(3) 375,599 498,413 0 0 0 300 Total Non-Oeprating Revenues(4) $604,383 $615,261 $39,607 $41,009 $15,685 $10,300 Net Revenues $9,994,845 $8,433,896 $8,626,094 $7,672,648 $8,484,332 $6,299,492 Other Sources of Funds Special Assessment Repayments $387,867 $283,861 $225,507 $257,366 $123,404 $154,907 Total Other Sources $387,867 $283,861 $225,507 $257,366 $123,404 $154,907 Max Annual Assessment Debt Service $289,613 $212,489 $199,582 $203,764 $202,852 $202,852 Net Revenue Available for Non -Assessment Debt Service $10,093,099 $8,505,267 $8,652,019 $7,726,250 $8,404,884 $6,096,640 Non -Assessment Bond Debt Service(5) $2,309,689 $2,852,381 $2,905,851 $2,771,990 $3,348,068 $2,828,333 Non -Assessment Bond Debt Service Coverage(6) 4.37 2.98 2.98 2.79 2.51 2.16 Note: The above table does not include debt service on junior lien bonds. (1) Excludes revenue raised and used to pay interfund City utility taxes. (2) Includes one-time sources such as connection, meter, capital facility, penalty, etc. fees. (3) Farm assets sold in 2011. (4) Excludes non-cash capital contributions, gains/losses, capital grants, etc. (5) Excludes debt for prepaid maturities. (6) Bond covenant requires coverage ratio of 1.25 times Maximum Annual Debt Service. Source: The City of Pasco 19 Page 287 of 321 Operations for 2015 have progressed primarily as planned. However, several construction projects have been deferred, resulting in a reduction of $6.4 million in the capital outlay budget. One of its largest projects this year is the Wastewater Treatment Plant Clarifier project, which involves, but is not limited to, the installation of two new primary clarifiers, a new primary sludge pumping room, and a new scum pump station. Work is expected to continue into 2016 on this project. CITY TO ADD A SECTION ON RESULTS TO DATE THROUGH 2015 AND ANY EXPECTATIONS. (REMAINDER OF PAGE INTENTIONALLY LEFT BLAND 20 Page 288 of 321 Comparative Statement of Net Position (1) Included in restricted cash and investments in CAFR. For 2014 CAFR, Local Government Investment Pool investments were treated on the face of the financials as investments rather than as cash equivalents. (2) Listed above in current asset section. Source: The City of Pasco 21 Page 289 of 321 As of December 31 ASSETS: 2010 2011 2012 2013 2014 Current assets: Cash and cash equivalents $5,025,157 $2,685,884 $5,726,048 $3,399,384 $1,511,272 Restricted cash and cash equivalents: Customer deposits 551,093 568,054 561,657 561,096 447,169(1) Unspent bond proceeds 3,000,000 2,670,000 1,005,365 5,614,545 4,184,141 (1) Revenue bond covenants 1,304,142 2,657,140 3,316;293 2,986,517 4,446,513 (1) Investments 2,000,000 2,000,000 2,000,000 2,000,000 4,525,411 Receivables (net of allowances): Customers 1,056,116 1,091,837 881,264 787,050 883,214 Grants 108,588 87,030 40,418 402,186 81,943 Special assessments - current portion - - - - 299,749 Inventory 385,205 377,455 317,348 234,694 293,801 Total current assets 13,430,301 12,137,400 13,848,393 15,985,472 16,673,213 Noncurrent assets: Restricted cash equivalents 410,000 410,000 410,000 3,188,801 1,763,032 (1) Special assessments 1,010,193 699,201 608,241 397,549 - (2) Land 6,598,676 6,598,676 2,494,425 2,520,925 2,520,925 Construction work in progress 12,871,898 13,899,412 15,512,175 7,409,247 5,738,643 Capital assets net of accumulated depreciation: Building and structures 36,513,178 34,119,516 31,975,044 37,434,680 35,963,444 Machinery and equipment 1,115,694 996,684 1,040,048 7,340,854 6,690,748 Infrastructure 107,802,974 112,295,371 114,357,869 114,456,107 117,088,203 Total noncurrent assets 166,322,613 169,018,860 166,397,802 172,748,163 169,764,995 TOTAL ASSETS 179,752,914 181,156,260 180,246,195 188,733,635 186,438,208 LIABILITIES: Current liabilities: Accounts payable 692,749 799,680 618,386 1,111,284 299,577 Due to other governments 77,025 126 3,173 - 43,077 Other liabilities 32,103 - - - 147,505 Customer deposits payable 551,093 568,054 561,657 561,096 447,169 Accrued interest payable 380,385 696,800 639,468 722,505 275,099 Compensated absences - current portion 184,790 120,149 55,378 360,641 162,830 Loans due other governments - current position 1,530,552 1,575,357 1,621,743 1,669,767 1,719,487 Revenue bonds - current portion 2,135,000 1,980,000 2,035,000 1,905,000 2,045,000 Total current liabilities 5,583,697 5,740,166 5,534;805 6,330,293 5,139,744 Noncurrent liabilities: Compensated absences 144,162 264,491 384,639 134,203 69,784 Loans due other governments 13,530,951 11,955,593 10,333;849 8,664,104 6,944,624 Revenue bonds payable 26,990,000 24,260,000 22,225,000 28,450,000 25,985,000 Total noncurrent liabilities 40,665,113 36,480,084 32,943,488 37,248,307 32,999,408 TOTAL LIABILITIES 46,248,810 42,220,250 38,478,293 43,578,600 38,139,152 NET POSITION Net investment in capital assets 123,715,917 128,138,709 129,163,969 128,472,942 135,483,147 Restricted - - - - 10,840,855 Unrestricted 9,788,187 10,797,301 12,603,933 16,682,093 1,975,054 Total Net Position 133,504,104 138,936,010 141,767,902 145,155,035 148,299,056 Adjustment to reflect the consolidation of internal service fund activity related to proprietary funds 2,666,455 2,962,296 3,271,829 3,623,894 3,904,347 TOTAL NET POSITION $136,170,559 $141,898,306 $145,039,731 $148,778,929 $152,203,403 (1) Included in restricted cash and investments in CAFR. For 2014 CAFR, Local Government Investment Pool investments were treated on the face of the financials as investments rather than as cash equivalents. (2) Listed above in current asset section. Source: The City of Pasco 21 Page 289 of 321 CITY PROFILE The City, located in southeastern Washington, encompasses approximately 33.6 square miles and has a 2015 estimated population of 68,240. The City and the adjacent cities of Richland and Kennewick make up what is known as the Tri -Cities. The City serves as the Franklin County seat and is the largest city in the County. The City was incorporated in 1891. The City has a Council -Manager form of government. The City Manager is appointed by the City Council and is responsible for the administration of all aspects of City operations. Council members are part-time officials, elected every four years through city-wide elections. The Council is comprised of seven members, one of whom is selected by the members to serve as Mayor for a two-year term. The City provides a full range of services normally associated with a municipality. These services include police and fire protection, ambulance service, parks and recreational activities, street maintenance and construction, planning and zoning and general administrative services. The City owns and operates water, sewer and stormwater utility and a cemetery. The City owns and operates a golf course. City Council Following are the current members of the City Council and their term expiration dates. Members Position Matt Watkins Rebecca Francik Robert Hoffmann Michael Garrison Saul Martinez Tom Larsen Al Yenney * Re-elected in November, 2015 Key Administrative Staff Mayor Mayor Pro -Tem Council Member Council Member Council Member Council Member Council Member Term Expires December 31, 2015* December 31, 2015* December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2015* Dave Zabell, City Manager, assumed his position with the City in August 2014. Mr. Zabell has been in local government for over 33 years, and was formerly the City Manager for the City of Fife, Washington, a position he held since 2011. Prior to that he was Assistant City Manager for Yakima, Washington, from 2005-2011 and Public Works Director for the City of Bothell, Washington, from 2000-2005. Mr. Zabell also worked for the City of Marysville, Washington, from 1985 - 2000, serving in positions including Engineer, Public Works Director and City Administrator for the last seven years. Mr. Zabell has a Master of Public Administration degree from the University of Washington and a Bachelor of Science degree in Public Administration from Upper Iowa University. Stan Strebel, De iudy City Manager, assumed his current responsibilities in July 2009. Prior to then, he served as City's Director of Administrative and Community Services from 1999. Mr. Strebel has also served as City Manager of the City of Femdale, Washington for seven years and as City Manager of the City of Bisbee, Arizona for four years. He has a total of 35 years' experience in local government administration. He holds a Bachelor of Arts Degree in Urban Planning from the University of Washington and an MPA from Brigham Young University. Rick Tenvay, Administrative and Community Services Director, began serving as the Director of the City's Department of Administrative and Community Services Department in July 2009. The department consists of five service divisions: Administration, Facilities, Finance, Information Systems, and Recreation. Prior to coming to the City, Mr. Terway served as Parks, Recreation and Forestry Manager for the City of Fergus Falls, Minnesota for three years and as Public Service Director for the City of Vadnais Heights, Minnesota. His experience also includes more than 12 years working for Washington State Parks. Mr. Terway holds a Bachelor of Science in Applied Management from National American University and an Associate of Applied Science in Natural Resources from the University of Minnesota. Eva Lindgren, Deputy Director Administrative and Community Services De�iartment, served for a brief period as the City's Interim Finance Manager beginning in the fall of 2014. She was appointed to her current position in early 2015, where she has primary responsibility to oversee the finance operations of the City. Ms. Lindgren is a Certified Public Accountant, licensed in both Washington and Alaska. She has over two decades of experience auditing and working for local governments. She was a Staff Accountant for four years, the Accounting Manager for the City of Ketchikan, Alaska for nine years; the Controller for the North Slope Borough, Alaska for three years; and the Finance Manager for the City of Chehalis, Washington for six years. 22 Page 290 of 321 Labor Relations The City currently (as of October 31, 2015) employs 358 employees (316 full time equivalents, not including 52 seasonal employees) people including part-time workers. There are 201 employees represented by 5 bargaining units as follows: No. of Current Contract Bargaining Unit Employees Expiration Date International Union of Operating Engineers, Local No. 280 International Association of Firefighters Pasco Police Officers Assoc. "Uniformed" Employee Pasco Police Officers Assoc. "Non -uniformed" Employee Pasco Code Enforcement Officer's and Permit Technicians 67 December 31, 2015 58 December 31, 2015 62 December 31, 2015 8 December 31, 2016 6 December 31, 2015 201 The City considers labor relations with its bargaining units to be good. There have been no recent strikes or major labor relations problems. Negotiations are currently underway with unions with expiring contracts. It is expected that the contracts will be settled in early 2016. Pensions Substantially all of the City employees are enrolled in the State Public Employees Retirement System ("PERS' or the Law Enforcement Officers and Fire Fighters Retirement System ("LEOFF'�. PERS Plans 1 and 2 and LEOFF are defined benefit plans and PERS Plan 3 is both a defined benefit plan (employer share) and defined contribution plan (employee share). These plans are administered by the State. Contributions by both employees and employers are based on gross wages. Those PERS and LEOFF participants who joined the system by September 30, 1977 are Plan 1 members. PERS participants who joined on or after October 1, 1977, are Plan 2 members, unless they exercise an option to transfer to Plan 3. PERS participants joining on or after September 1, 2002, have the irrevocable option of choosing membership in PERS Plan 2 or PERS Plan 3. LEOFF participants who joined on or after October 1, 1977, are Plan 2 members. State law requires systematic actuarial based funding to finance the retirement plans. Actuarial calculations to determine employer and employee contributions are prepared by the Office of the State Actuary ("OSA', a nonpartisan legislative agency charged with advising the Legislature and Governor on pension benefits and funding policy. To calculate employer and employee contribution rates necessary to pre -fund the plans' benefits, OSA uses actuarial cost and asset valuation methods selected by the Legislature as well as economic and demographic assumptions. The Legislature adopted the following economic assumptions for contribution rates beginning July 1, 2013: (1) 7.9% (7.8% as of July 1, 2014) rate of investment return; (7.5% for LEOFF Plan 2); (2) general salary increases of 3.75%; (3) 3.0% rate of Consumer Price Index increase; and (4) 0.95% growth in membership (1.25% for LEOFF). The long-term investment return assumption is used as the discount rate for determining the liabilities for a plan. The 10 -year (2005-2014) annualized return on the investment of the retirement funds was 8.35%. Plan Funding Contribution Rates and Amounts. All State -administered retirement plans are funded by a combination of funding sources: (1) contributions from the State for certain plans; (2) contributions from employers (including the State as employer and the City and other governmental employers); (3) contributions from employees; and (4) investment returns. Retirement funds are invested by the Washington State Investment Board, a 15 -member board created by the Legislature in 1981. The City's total contribution for the year ended December 31, 2014, was $1,546,052, representing 7.2 percent of covered payroll. The City contributed $807,853 in 2013 and $996,260 in 2014 to PERS, and $573,271 in 2013 and $549,792 in 2014 to LEOFF for all of the City's employees that are covered under PERS and LEOFF. Under State statute, contribution rates are adopted by the Pension Funding Council ("PFC") (and, for LEOFF 2, by the LEOFF 2 Board) in even -numbered years for the next ensuing State biennium. The rate -setting process begins with an actuarial valuation by the OSA, which makes non-binding recommendations to the Select Committee on Pension Policy, which then recommends contribution rates to the PFC and the LEOFF 2 Board. No later than the end of July in even -numbered years, the PFC and the LEOFF 2 Board adopts contribution rates, which are subject to revision by the Legislature. The following table outlines the current contribution rates of employers and employees under PERS and LEOFF. 23 Page 291 of 321 Contribution Rates for the 2015-17 Biennium Expressed as a Percentage of Covered Payroll Employer(') Employee PERS Plan 1 11.18% 6.00% PERS Plan 2 11.18 6.12 PERS Plan 3 11.18 Variable (Z) LEOFF Plan 1 0.18 0.00 LEOFF Plan 2 5.23 8.41(3) (1) Includes a 0.18% DRS administration expense fee. (2) Rates vary from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member. (3) The State also contributes 3.36% to this plan. Source: Department of Retirement Systems. While the City's prior contributions represent its full current liability under the retirement systems, any unfunded pension benefit obligations could be reflected in future years as higher contribution rates. It is expected that the contribution rates for employees and employers in the PERS Plans 2 and 3 will increase in the coming years. The OSA website (which is not incorporated into this Official Statement by reference) includes information regarding the values, funding levels and investments of these retirement plans. During the years 2001 through 2010 the rates adopted by the Legislature were lower than those that would have been required to produce actuarially required contributions to PERS Plan 1, a closed plan with a large proportion of the retirees. The State Actuary's actuarial valuation for PERS Plan 1 as of June 30, 2014 showed a 61% funded ratio (unfunded liability of $4.965 billion), compared to a 63% funded ratio as of June 30, 2013, while PERS Plans 2 and 3 and LEOFF Plans 1 and 2 had valuation assets that exceed their accrued liability by $214 million (a 101% funded ratio), $1.2 billion (a 127% funded ratio) and $1.0 billion (a 113% funded ratio), respectively. The decrease in the funded status and increase in the unfunded accrued actuarial liability primarily reflect changed demographic assumptions, including projected improvements in mortality rates, and the statutory requirement that the assumed rate of return be reduced to 7.8% from 7.9%. OSA uses the Projected Unit Credit ("PUC") cost method and the Actuarial Value of Assets ("AVA'� to report a plan's funded status. PUC is one of several acceptable measures of a plan's funded status under current GASB rules. The PUC cost method projects future benefits under the plan, using salary growth and other assumptions and applies the service that has been earned as of the valuation date to determine accrued liabilities. The AVA is calculated using a methodology which smooths the effect of short-term volatility in the Market Value of Assets by deferring a portion of annual investment gains or losses over a period of up to eight years. PERS Plans 2 and 3 are accounted for in the same pension trust fund and may legally be used to pay the defined benefits of any PERS Plan 2 or 3 members. Assets for one plan may not be used to fund benefits for another plan: however, all employers in PERS are required to make contributions at a rate (percentage of payroll) determined by the OSA every two years for the sole purpose of amortizing the PERS Plan 1 unfunded actuarial accrued liability within a rolling 10 -year period. The Legislature has established certain maximum contribution rates that began in 2009 and will continue until 2015 and certain minimum contribution rates that are to became effective in 2015 and remain in effect until the actuarial value of assets in PERS Plan 1 equals 100% of the actuarial accrued liability of PERS Plan 1. These rates are subject to change by future legislation enacted by the State Legislature to address future changes in actuarial and economic assumptions and investment performance. In 2011, the Legislature ended the future automatic annual increase, which is a fixed dollar amount multiplied by the member's total years of service, for most retirees in the PERS Plan 1 plan, which is forecast to reduce the unfunded accrued actuarial liability in PERS Plan 1. The State Supreme Court recently upheld the constitutionality of this legislation. Other Retirement Systems Firemen s Pension Fund. The City is the administrator of a single employer defined benefit pension plan, the Firemen's Pension Fund (the "Firemen's Pension Fund Plan"). The Firemen's Pension Fund Plan is limited to firefighters and beneficiaries employed before March 1, 1970, and as of March 1, 1970, was closed to new entrants. Firefighters hired before March 1, 1970, at retirement receive the greater of the pension benefit provided under the Firemen's Pension Fund Plan or under LEOFF. Any excess benefit over the LEOFF benefit is provided by the Firemen's Pension Fund Plan. As of December 31, 2014, there were a total of 11 individuals covered by the Firemen's Pension Fund Plan, and 5 of the 11 are widows. All future obligations of the Firemen's Pension Fund Plan were assumed by LEOFF. 24 Page 292 of 321 For additional information, see Appendix B—"2014 AUDITED FINANCIAL STATEMENTS—Note 8. Employee Retirement Systems and Pension Plans." The information in this section has been obtained from the City's financial statements and information on the State Actuary's and State Department of Retirement System's websites. Other Post -Employment Benefits LEOFF 1. In accordance with chapter 41.26 RCW, the City provides continuation of medical insurance coverage to employees that retire under the LEOFF retirement system, which includes all police officers and fire fighters who were hired prior to October 1, 1977. Medical coverage continues for the life of the retiree. The plan is a closed, single employer defined benefit healthcare plan administered by the City. As of December 31, 2014, there were 32 retirees and two active employees in this plan. The City's annual other postemployment benefit ("OPEB'� cost is calculated based on the annual required contribution ("ARC'D, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The tables in Note 5(F) of Appendix C show the components of the City's annual OPEB cost for 2014, the amount actually contributed to the plan and changes in the City's net OPEB obligation. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the years 2012 through 2014 were as follows: Fiscal Year Annual % of Annual Net Ended Cost OPEB Contributed OPEB Obligation 12/31/2014 $1,091,159 55% $2,523,460 12/31/2013 800,733 64 1,981,585 12/31/2012 948,878 45 1,695,149 The City currently funds post -employment healthcare benefits on a pay-as-you-go basis. The City finances the plan by purchasing medical insurance and self -funding vision and medical benefits not covered by the insurance. Firemen's Pension. As required by chapter 41.26 RCW, the City provides lifetime medical care for members of the Law Enforcement Officers and Firefighters (LEOFF) retirement system hired before October 1, 1977 under a single employer, defined benefit healthcare plan administered by the City. The members' necessary hospital, medical, and nursing care expenses not payable by worker's compensation, social security, insurance provided by another employer, or other pension plan, or any other similar source are covered. Most medical coverage for eligible retirees is provided by the City's employee medical insurance program. Under authorization of the LEOFF Disability Board, direct payment is made for other retiree medical expenses not covered by standard medical plan benefit provisions. Members of the Fire Pension plan purchase medical insurance through the City's medical insurance program. Funding 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. The City of Pasco has a total of 6 LEOFF plan 1 members that are also members of the Old Firemen's Pension Plan and are fully funded through the Old Fire Pension Fund. All are retired. Based on the 2014 in-house evaluation, the Actuarial Accrued Liability for the Fire Pension OPEB Trust Fund is $1,988,453. As of December 31, 2014, the fund had assets of $2,326,321. 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: Fiscal Year Annual % of Annual Net Ended Cost OPEB Contributed OPEB Obligation 12/31/2014 $0 n/a $0 12/31/2013 0 n/a 0 12/31/2012 0 n/a 0 25 Page 293 of 321 For additional information, see Appendix B—"2014 AUDITED FINANCIAL STATEMENTS—Note 9. Other Post -Employment Benefits." Risk Management The City is a member of the Washington Cities Insurance Authority ("WCIA"). Nine cities originally formed WCIA in 1981 for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self- insuring, and/or jointly contracting for risk management services. WCIA currently has over 175 members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police, public officials' errors or omissions, stop gap, and employee benefits liability. Limits are $4 million per occurrence self-insured layer, and $16 million per occurrence in the re -insured excess layer. The excess layer is insured by the purchase of reinsurance and insurance. Total limits are $20 million per occurrence, subject to aggregate sub limits in the excess layers. The WCIA Board of Directors determines the limits and terms of coverage annually. 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. WCIA retains the right to additionally assess the membership for any funding shortfall. An investment committee, using investment brokers, produces additional revenue by investment of WCIA's assets in financial instruments which comply with all State guidelines. These revenues directly offset portions of the membership's annual assessment. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of WCIA. Accounting and Budgeting Process Basis of Accounting: The accounting and reporting policies of the City conform to the Budgeting, Accounting and Reporting System ("BARS") as prescribed by the State Auditor. The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, as appropriate. The City's resources are allocated to and accounted for in individual funds depending on their intended purpose. The Budget Process: Washington law, chapter 35A.33 RCW, prescribes the method and schedule for annual budgeting for the City. Annual appropriated budgets are adopted at the fund level. Local improvement district debt service and certain custodial agency funds, however, are not budgeted. A budget increase or decrease to a fund must be authorized by the City Council, while appropriation transfers within a fund may be authorized by the City Manager. All budgets are controlled on an organizational basis. The budgets constitute the legal authority for expenditures at that level. Annual appropriations for all funds lapse at the fiscal period end. Auditing of City Finances The City's financial statements are prepared in conformity with generally accepted accounting principles ("GAAP") as applied to governmental units, and are regulated by the Washington State Auditor's Office, division of Audit. The Government Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. 26 Page 294 of 321 Accounting systems and budgetary controls are prescribed by the Office of the State Auditor ("SAO") in accordance with RCW 43.09.200, RCW 43.09.230 and GAAP. State statutes require audits for cities to be conducted by the SAO. The City complies with the systems and controls prescribed by the SAO and establishes procedures and records which reasonably assure safeguarding of assets and the reliability of financial reporting. The SAO is required to examine the affairs of cities. The City is audited annually. The examination must include, among other things, the financial condition and resources of the City, whether the laws and constitution of the State are being complied with, and the methods and accuracy of the accounts and reports of the City. The SAO reviewed the City's financial statements and accounting practices for fiscal year 2014, and issued an unqualified opinion on the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information. The City's audited financial statements for the year ended December 31, 2014 are attached herein as Appendix B. Authorized Investments Chapter 35.39 RCW limits the investment by cities and towns of its inactive funds or other funds in excess of current needs to the following authorized investments: United States bonds; United States certificates of indebtedness; bonds or warrants of the State and any local government in the State; its own bonds or warrants of a local improvement district which are within the protection of the local improvement guaranty fund law; and any other investment authorized by law for any other taxing district or the State Treasurer. Under chapter 43.84 RCW, the State Treasurer may invest in non-negotiable certificates of deposit in designated qualified public depositories; in obligations of the U.S. government, its agencies and wholly owned corporations; in bankers' acceptances; in commercial paper; in the obligations of the federal home loan bank, federal national mortgage association and other government corporations subject to statutory provisions and may enter into repurchase agreements. Utility revenue bonds and warrants of any city and bonds or warrants of a local improvement district are also eligible investments (RCW 35.39.030). Money available for investment may be invested on an individual fund basis or may, unless otherwise restricted by law, be commingled within one common investment portfolio. All income derived from such investment may be either apportioned to and used by the various participating funds or for the benefit of the general government in accordance with city ordinances or resolutions. Funds derived from the sale of bonds or other instruments of indebtedness will be invested or used in such manner as the authorizing ordinances, resolutions or bond covenants may lawfully prescribe. Local Government Investment Pool. The State Treasurer's Office administers the Washington State Local Government Investment Pool (the "LGIP', which invests money on behalf of more than 450 cities, counties and special taxing districts. In its management of LGIP, the State Treasurer is required to adhere, at all times, to the principles appropriate for the prudent investment of public funds. These are, in priority order, (i) the safety of principal; (ii) the assurance of sufficient liquidity to meet cash flow demands; and (iii) to attain the highest possible yield within the constraints of the first two goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands. The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool which provides its participants the opportunity to benefit from the economies of scale inherent in pooling. It is also intended to offer participants increased safety of principal and the ability to achieve a higher investment yield than would otherwise be available to them. The pool is restricted to investments with maturities of one year or less, and the average life typically is less than 90 days. Investments permitted under the pool's guidelines include U.S.. government and agency securities, bankers' acceptances, high quality commercial paper, repurchase and reverse repurchase agreements, motor vehicle fund warrants, and certificates of deposit issued by qualified Washington State depositories. The City may withdraw its funds in whole or in part on less than 24 hours' notice. Authori.Zed Investments for Bond Proceed. In addition to the eligible investments discussed above, bond proceeds may also be invested in mutual funds with portfolios consisting of U.S. government and guaranteed agency securities with average maturities of less than four years; municipal securities rated in one of the four highest categories; and money market funds consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating categories of a nationally recognized rating agency. Bond proceeds may also be invested in shares of money market funds with portfolios of securities otherwise authorized by law for investment by local governments (RCW 39.59.030). 27 Page 295 of 321 City Investments. As of September 30, 2015, the City's investments at market value totaled $54,072,596. The concentration of credit risk as a percentage of total investments is as follows: Issuer U.S. Government Securities Local Govt. Investment Pool % of Total Fair Value 27.23% $14,724,314 72.77% 39,348,282 100.00% $54,072,596 GENERAL AND ECONOMIC INFORMATION The City is located in southeastern Washington in Franklin County at the confluence of the Columbia and the Yakima rivers, approximately 200 miles southeast of Seattle, 150 miles southwest of Spokane and 200 miles northeast of Portland, Oregon. Pasco is one of three cities which make up the urban area known as the Tri -Cities, the others being Kennewick and Richland in neighboring Benton County. Population With a 2015 estimated population of 68,150, the City is the largest of four incorporated communities in Franklin County. Historical populations for the City and Franklin County are as follows: Year City of Pasco Franklin County 2015 68,240 87,150 2014 67,700 86,600 2013 65,600 84,800 2012 62,670 82,500 2011 61,000 80,500 Source: Washington State Office of Financial Management Largest Employers The table below shows a list of the top ten employers ranked by number of employees. TRI -CITIES AREA MAJOR EMPLOYERS Employer Battelle/PNNL Pasco School District Kadlec Medical Center ConAgra (Lamb Weston) Bechtel National Kennewick School District Richland School District Mission Support Alliance Washington River Protection Tyson Foods Source: City of Pasco Service/Product Employees Research and Development 4,219 Education 2,717 Health Services 2,644 Agriculture Products 2,498 Government 2,395 Education 1,922 Education 1,600 Government 1,512 Government 1,490 Agriculture Products 1,300 a:3 Page 296 of 321 Economic Data TAXABLE RETAIL SALES County City of Franklin Year Following are additional economic indicators for the City, the County and the Tri -Cities Area. County 2015(1) $258,668,004 CITY OF PASCO BUILDING PERMITS 2014 1,016,794,531 1,196,017,085 Residential0> Commercial/Industrial 1,110,256,894 Total Year Permits Value(2) Permits Value(2) Permits Value(2) 2015(3) 1,353 $61,394 317 $78,715 1,670 $140,109 2014 1,525 73,319 353 90,492 1,878 163,811 2013 1,705 73,701 408 51,035 2,113 124,736 2012 1,507 85,314 382 56,677 1,889 141,991 2011 1,817 113,320 317 20,110 2,134 133,430 (1) Includes Single Family, Two Family, Three or more families, accessory structures and alterations. (2) Expressed in thousands. (3) As of September 30, 2015. Source: City of Pasco Building Department (1) Through the first quarter of 2015. Taxable retail sales through the first quarter of 2014 for the City was $222,495,091 and $264,224,750 for Franklin County. Source: Wlashington State Department of Revenue PERSONAL AND PER CAPITA INCOME TAXABLE RETAIL SALES County City of Franklin Year Pasco County 2015(1) $258,668,004 $298,816,678 2014 1,016,794,531 1,196,017,085 2013 933,301,675 1,110,256,894 2012 861,063,279 1,037,096,265 2011 83 9,174,157 1,007,226,336 (1) Through the first quarter of 2015. Taxable retail sales through the first quarter of 2014 for the City was $222,495,091 and $264,224,750 for Franklin County. Source: Wlashington State Department of Revenue PERSONAL AND PER CAPITA INCOME (1) Most recent data available. Source: U.S. Department of Commerce, Bureau of Economic Analysis State of WashinLyton Total Personal Franklin County Personal Income Total Personal Per Capita Year Income ($000's) Personal Income 2013(1) $2,645,389 $30,534 2012 2,587,381 30,164 2011 2,569,484 30,904 2010 2,331,604 29,463 2009 2,136,678 28,689 (1) Most recent data available. Source: U.S. Department of Commerce, Bureau of Economic Analysis State of WashinLyton Total Personal Per Capita Income ($000's) Personal Income $332,654,857 $47,717 324,458,394 47,055 303,999,485 44,565 286,862,463 42,547 280,943,954 42,137 ESTIMATED MEDIAN HOUSEHOLD INCOME (1) Year Franklin County Washington State 2014(1) $58,188 $58,686 2013(2) 57,196 57,544 2012 56,221 56,444 2011 53,644 55,500 2010 53,355 54,888 (1) The Revenue Forecast Council's November 2014 forecast of the state personal income is used in the projection of 2013 median household income. (2) In addition to the state personal income data published by BEA, the payroll data compiled by the state Employment Security Department are used in the Preliminary estimates of 2010 median household income. Source: lVashington State Department of Revenue 29 Page 297 of 321 RESIDENT CIVILIAN LABOR FORCE AND EMPLOYMENT AND CIVILIAN NON -AGRICULTURE WAGE AND SALARY EMPLOYMENT(t) (1) Detail may not add to indicated totals 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 pay period including the 1211, of the month by place of work. (2) Preliminary report as of September 2015. (3) North American Industry Classification System. Source: Washington State Employment Security Depattment, TAX MATTERS Tax Exemption Exclusion From Gross Income. In the opinion of Bond Counsel, under existing federal law and assuming compliance by the City with applicable requirements of the Internal Revenue Code of 1986, as amended (the "Code'), that must be satisfied subsequent to the issue date of the Bonds, interest on the Bonds will be excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals. Continuing Requirements. The City is required to comply with certain requirements of the Code after the date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes, including, without limitation, requirements concerning the qualified use of Bond proceeds and the facilities financed or refinanced with Bond proceeds, limitations on investing gross proceeds of the Bonds in higher yielding investments in certain circumstances, and the requirement to comply with the arbitrage rebate requirement to the extent applicable to the Bonds. The City has covenanted in the Bond Ordinance to comply with those requirements, but if the City fails to comply with those requirements, interest on the Bonds could become taxable retroactive to the date of issuance of the Bonds. Bond Counsel has not undertaken and does not undertake to monitor the City's compliance with such requirements. 30 Page 298 of 321 Annual Average 2015(2) 2014 2013 2012 2011 Kennewick -Richland -Pasco MSA Labor Force 128,645 128,280 128,415 131,192 131,470 Total Employment 121,654 118,084 116,691 118.890 120,500 Total Unemployment 6,991 10,195 11,724 12,302 10,970 Unemployment Rate 5.4% 7.9% 9.1% 9.4% 8.3% Franklin County Labor Force 39,566 38,266 38,256 38,996 38,340 Total Employment 37,460 34,997 34,623 35,216 34,880 Total Unemployment 2,106 3,269 3,633 3,780 3,460 Unemployment Rate 5.3% 8.5% 9.5% 9.7% 9.0% NAICS INDUSTRYP Kennewick -Richland -Pasco MSA Total Nonfarm 107,400 102,900 101,700 101,300 104,000 Total Private 89,200 84,300 83,400 83,100 85,900 Goods Producing 15,800 14,000 13,600 13,400 13,600 Mining, Logging & Construction 7,000 6,300 6,200 6,000 6,500 Manufacturing 8,800 7,800 7,400 7,400 7,100 Service Providing 91,600 88,800 88,100 87,900 90,300 Trade, Transportation & Utilities 19,100 18,100 17,500 17,100 16,700 Financial Activities 3,700 4,200 4,200 3,900 3,700 Professional & Business Services 20,700 20,700 20,800 21,700 24,900 Educational & Health Services 15,000 14,400 13,700 13,400 13,300 Leisure & Hospitality 10,500 9,800 9,600 9,500 9,400 Government 18,200 18,600 18,300 18,200 18,100 Workers in Labor/Management Disputes 0 0 0 0 0 (1) Detail may not add to indicated totals 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 pay period including the 1211, of the month by place of work. (2) Preliminary report as of September 2015. (3) North American Industry Classification System. Source: Washington State Employment Security Depattment, TAX MATTERS Tax Exemption Exclusion From Gross Income. In the opinion of Bond Counsel, under existing federal law and assuming compliance by the City with applicable requirements of the Internal Revenue Code of 1986, as amended (the "Code'), that must be satisfied subsequent to the issue date of the Bonds, interest on the Bonds will be excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals. Continuing Requirements. The City is required to comply with certain requirements of the Code after the date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes, including, without limitation, requirements concerning the qualified use of Bond proceeds and the facilities financed or refinanced with Bond proceeds, limitations on investing gross proceeds of the Bonds in higher yielding investments in certain circumstances, and the requirement to comply with the arbitrage rebate requirement to the extent applicable to the Bonds. The City has covenanted in the Bond Ordinance to comply with those requirements, but if the City fails to comply with those requirements, interest on the Bonds could become taxable retroactive to the date of issuance of the Bonds. Bond Counsel has not undertaken and does not undertake to monitor the City's compliance with such requirements. 30 Page 298 of 321 Corporate Alternative Minimum Tax. While interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, under Section 55 of the Code, tax exempt interest, including interest on the Bonds, received by corporations is taken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporations (as defined for federal income tax purposes). Under the Code, alternative minimum taxable income of a corporation will be increased by 75% of the excess of the corporation's adjusted current earnings (including any tax exempt interest) over the corporation's alternative minimum taxable income determined without regard to such increase. A corporation's alternative minimum taxable income, so computed, that is in excess of an exemption of $40,000, which exemption will be reduced (but not below zero) by 25% of the amount by which the corporation's alternative minimum taxable income exceeds $150,000, is then subject to a 20% minimum tax. A small business corporation is exempt from the corporate alternative minimum tax for any taxable year beginning after December 31, 1997, if its average annual gross receipts during the three -taxable -year period beginning after December 31, 1993, did not exceed $5,000,000, and its average annual gross receipts during each successive three - taxable -year period thereafter ending before the relevant taxable year did not exceed $7,500,000. Tax on Certain Passive Investment Income of S Cmporations. Under Section 1375 of the Code, certain excess net passive investment income, including interest on the Bonds, received by an S corporation (a corporation treated as a partnership for most federal tax purposes) that has Subchapter C earnings and profits at the close of the taxable year may be subject to federal income taxation at the highest rate applicable to corporations if more than 25% of the gross receipts of such S corporation is passive investment income. Foreign Branch Profits Tax. Interest on the Bonds may be subject to the foreign branch profits tax imposed by Section 884 of the Code when the Bonds are owned by, and effectively connected with a trade or business of, a United States branch of a foreign corporation. Possible Consequences of Tax Compliance Audit. The Internal Revenue Service (the "IRS's has established a general audit program to determine whether issuers of tax-exempt obligations, such as the Bonds, are in compliance with requirements of the Code that must be satisfied in order for interest on those obligations to be, and continue to be, excluded from gross income for federal income tax purposes. Bond Counsel cannot predict whether the IRS would commence an audit of the Bonds. Depending on all the facts and circumstances and the type of audit involved, it is possible that commencement of an audit of the Bonds could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of its ultimate outcome. Certain Other Federal Tax Consequences Bonds Not 'Qualified Tax-Exe)Vt Obligations"for Financial Institutions. Section 265 of the Code provides that 100% of any interest expense incurred by banks and other financial institutions for interest is allocable to tax-exempt obligations acquired after August 7, 1986, will be disallowed as a tax deduction. However, if the tax-exempt obligations are obligations other than private activity bonds, are issued by a governmental unit that, together with all entities subordinate to it, does not reasonably anticipate issuing more than $10,000,000 of tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) in the current calendar year, and are designated by the governmental unit as "qualified tax-exempt obligations," only 20% of any interest expense deduction allocable to those obligations will be disallowed. The City is a governmental unit that, together with all subordinate entities, reasonably anticipates issuing more than $10,000,000 of tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) during the current calendar year and has not designated the Bonds as "qualified tax-exempt obligations" for purposes of the 80% financial institution interest expense deduction. Therefore, no interest expense of a financial institution allocable to the Bonds is deductible for federal income tax purposes. [Original Issue Premium. The Bonds maturing in the years 20_ through and including 20_ have been sold at prices reflecting original issue premium ("Premium Bonds"). An amount equal to the excess of the purchase price of a Premium Bond over its stated redemption price at maturity constitutes premium on such Premium Bond. A purchaser of a Premium Bond must amortize any premium over such Premium Bond's term using constant yield principles, based on the purchaser's yield to maturity. The amount of amortizable premium allocable to an interest accrual period for a Premium Bond will offset a like amount of qualified stated interest on such Premium Bond allocable to that accrual period, and may affect the calculation of alternative minimum tax liability described above. 31 Page 299 of 321 As premium is amortized, the purchaser's basis in such Premium Bond is reduced by a corresponding amount, resulting in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes upon a sale or disposition of such Premium Bond prior to its maturity. Even though the purchaser's basis is reduced, no federal income tax deduction is allowed. Purchasers of Premium Bonds, whether at the time of initial issuance or subsequent thereto, should consult with their own tax advisors with respect to the determination and treatment of premium for federal income tax purposes and with respect to state and local tax consequences of owning such Premium Bonds.] Reduction of Loss Reserve Deductions for Property and Casualty Insurance Companies. Under Section 832 of the Code, interest on the Bonds received by property and casualty insurance companies will reduce tax deductions for loss reserves otherwise available to such companies by an amount equal to 15 percent of tax exempt interest received during the taxable year. Effect on Certain Social Security and Retirement Benefits. Section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take receipts or accruals of interest on the Bonds into account in determining gross income. Otber Possible Federal Tax Consequences. Receipt of interest on the Bonds may have other federal tax consequences as to which prospective purchasers of the Bonds may wish to consult their own tax advisors. Potential Future Federal Tax Law Changes. From time to time, there are legislative proposals in Congress which, if enacted, could adversely affect the tax treatment market value or marketability of the Bonds. It cannot be predicted whether future legislation may be proposed or enacted that would affect the federal tax treatment of interest received on the Bonds. Prospective purchasers of the Bonds should consult with their own tax advisors regarding any proposed or pending legislation that would change the federal tax treatment of interest on the Bonds. Preservation of Tax Exemption The City has covenanted in the Bond Ordinance that it will take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes. RATING Standard & Poor's Rating Services has assigned a rating of "_" to the Bonds. The rating was applied for by the City and certain information was supplied by the City to the rating agency to be considered in evaluating the Bonds. The rating reflects only the view of the rating agency and an explanation of the significance of the rating may be obtained from the rating agency. There is no assurance that the rating will be retained for any given period of time or that the rating will not be revised downward or withdrawn entirely by the rating agency if, in its judgment, circumstances so warrant. Any such downward revision or withdrawal of the rating would be likely to have an adverse effect on the market price of the Bonds. CONTINUING DISCLOSURE Basic Undertaking to Provide Annual Financial Information and Notice of Listed Events. To meet the requirements of the United States Securities and Exchange Commission ("SEC' Rule 15c2 -12(b)(5) (the "Rule"), as applicable to a participating underwriter for the Bonds, the City will undertake (the "Undertaking") for the benefit of holders of the Bonds to provide or cause to be provided, either directly or through a designated agent, to the Municipal Securities Rulemaking Board ("MSRB"), in an electronic format as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB: (a) annual financial information and operating data of the type included in this Official Statement as general described below ("annual financial information's and (b) timely notice (not in excess of 10 business days after the occurrence of the event) of the occurrence of any of the following events with respect to the Bonds: (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notice of Proposed Issue (IRS Form 5701 — TEB) or other material 32 Page 300 of 321 notices or determinations with respect to the tax status of the Bonds; (7) modifications to rights of holders of the Bonds, if material; (8) Bond calls (other than scheduled mandatory redemptions of Term Bonds), if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the City, as such "Bankruptcy Events" are defined in Rule 15c2-12; (13) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) appointment of a successor or additional trustee or the change of name of a trustee, if material. Type of Annual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide will consist of. (1) the City's annual financial statements prepared (except as noted in the financial statements) in accordance with generally accepted accounting principles applicable to Washington governmental units such as the City, as such principles may be changed from time to time, which statements shall not be audited, except, however, that if and when audited financial statements are otherwise prepared and available to the City they will be provided; (2) a statement of authorized, issued and outstanding bonded debt secured by the Net Revenue of the Waterworks Utility; (3) debt service coverage ratios; and (4) general customer statistics for the Waterworks Utility. The annual financial information that the City undertakes to provide will be provided to the MSRB not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal year may be changed as permitted or required by State law, commencing with the City's fiscal year ending December 31, 2014. The annual financial information may be provided in a single or multiple documents and may be incorporated by reference to other documents available to the public on the Internet website of the MSRB or filed with the SEC. Amendment of Undertaking. The Undertaking is subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency or the MSRB, under the circumstances and in the manner permitted by the Rule. The City will give notice to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided. Termination of Undertaking. The City's obligations under the Undertaking will terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under the Undertaking will terminate if those provisions of the Rule which require the City to comply with the Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with federal securities laws delivered to the City, and the City provides timely notice of such termination to the MSRB. Remedy for Failure to CoVywith Undertaking. As soon as practicable after the City learns of any failure to comply with the Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with the Undertaking shall constitute a default in respect of the Bonds. The sole remedy of any holder of a Bond shall be to take such actions as that holder deems necessary, including seeking an order of specific performance from an appropriate court, to compel the City or other obligated person to comply with the Undertaking. Prior Compliance with Continuing Disclosure Undertakings. The City previously entered into undertakings under the Rule with respect to certain of its outstanding bonds. In October of 2013, the City discovered that it failed to (1) submit event notices with respect to downgrades to the insured ratings on its Unlimited Tax General Obligation Bonds, 1999, Unlimited Tax General Obligation Refunding Bonds, 2002, and Water and Sewer Revenue Bonds, 2009, and (2) timely file certain financial information as required by undertakings entered into in connection with certain outstanding bonds. The City filed with EMMA event notices with respect to these items on October 30, 2013. The City has otherwise complied in all material respects with the provisions of its various continuing disclosure undertakings, and has taken affirmative action to ensure full compliance with the undertakings by assigning appropriate staff to the tasks and enrolling in the MSRB's e-mail reminder system. 33 Page 301 of 321 CERTAIN INVESTMENT CONSIDERATIONS Limitations on Remedies. Any remedies available to the owners of the Bonds are in many respects dependent upon judicial actions, which are in turn often subject to discretion and delay and could be both expensive and time consuming to obtain. If the City fails to comply with its covenants under the Bond Ordinance or to pay principal of or interest on the Bonds, there can be no assurance that available remedies will be adequate to fully protect the interests of the owners of the Bonds. In addition to the limitations on remedies contained in State law, the rights and obligations under the Bonds and the Bond Ordinance may be limited by and are subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, and other laws relating to or affecting creditors' rights, to the application of equitable principles, and to the exercise of judicial discretion in appropriate cases. The legal opinion of Bond Counsel regarding the validity of the Bonds will be qualified by reference to bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium and other similar laws affecting the rights of creditors generally, and by general principles of equity. Bankruptcy. A municipality, such as the City, must be specifically authorized under State law in order to seek relief under Chapter 9 of the U.S. Bankruptcy Code (the `Bankruptcy Code"). Chapter 39.64 RCW, entitled the "Taxing Relief Bankruptcy Act," appears to permit any "taxing district" (defined to include any municipality or political subdivision, including cities) to voluntarily petition for relief under the Bankruptcy Code. A creditor cannot bring an involuntarily bankruptcy proceeding against a municipality, including cities. Under Chapter 9, a federal bankruptcy court may not appoint a receiver for a municipality or order the dissolution or liquidation of the municipality. If a municipality filed for bankruptcy, the bankruptcy court would have some discretion with respect to how to treat past and future obligations of such municipality regarding priority of payment to creditors under a plan for adjustment of debt under Chapter 9 of the Bankruptcy Code. INITIATIVE AND REFERENDUM General. Under the State constitution, the voters of the State have the ability to initiate legislation and to modify existing statutes through the powers of initiative and referendum. Initiatives and referenda are submitted to the voters upon receipt of a petition signed by at least eight percent (initiatives) and four percent (referenda) of the number of voters registered and voting for the office of Governor at the preceding regular gubernatorial election. Any law approved through the power of initiative by a majority of the voters may not be amended or repealed by the Legislature within a period of two years following enactment, except by a vote of two-thirds of all the members elected to each house of the Legislature, but thereafter is subject to amendment or repeal by the Legislature in the same manner as other laws. Future Initiatives. Initiative petitions affecting tax collections and levy rates (not including the taxes pledged to the repayment of the Bonds) and other matters may be filed in the future. The City cannot predict whether any such initiatives will qualify to be submitted to the voters or, if submitted, will be approved. Likewise, the City cannot predict what actions the Legislature might take, if any, regarding future initiatives approved by voters. LEGAL AND UNDERWRITING Approval of Counsel Legal matters incident to the authorization, issuance and sale of the Bonds by the City are subject to the approving legal opinion of Bond Counsel. The form of the opinion of Bond Counsel with respect to the Bonds is attached as Appendix C. The opinion of Bond Counsel is given based on factual representations made to Bond Counsel, and under existing law, as of the date of initial delivery of the Bonds, and Bond Counsel assumes no obligation to revise or supplement its opinion to reflect any facts or circumstances that may thereafter come to its attention, or any changes in law that may thereafter occur. The opinion of Bond Counsel is an expression of its professional judgment on the matters expressly addressed in its opinion and does not constitute a guarantee of result. Bond Counsel will be compensated only upon the issuance and sale of the Bonds. Financial Advisor Northwest Municipal Advisors, Bellevue, Washington, serves as financial advisor to the City in conjunction with the issuance of the Bonds (the "Financial Advisor"). The Financial Advisor has not audited, authenticated or otherwise verified the information set forth in this Official Statement or any other related information available to 34 Page 302 of 321 the City with respect to the accuracy and completeness of disclosure of such information, and no guaranty, warranty or other representation is made by the Financial Advisor respecting the accuracy and completeness of this Official Statement or any other matter related to this Official Statement. The Financial Advisor is an independent financial advisory firm and is not engaged in the business of underwriting, marketing, trading or distributing municipal securities. Litigation There is no litigation pending or threatened questioning the validity of the Bonds nor the power and authority of the City to issue the Bonds. On February 10, 2015, after a confrontation, three Pasco Police Officers fatally shot Antonio Zambrano-Montes. An investigation of the incident was conducted by the Tri -Cities Special Investigations Unit, the results of which are under review by the Franklin County Prosecutor. The City has been threatened with at least one wrongful death lawsuit, and one administrative claim of $25 million was tendered to the City shortly after the incident but later withdrawn. The City is covered for its liability losses up to a maximum of $20 million per occurrence by the Washington Cities Insurance Authority (see "Risk Management'). The City cannot predict whether future claims may be asserted against the City arising out of this incident or the outcome of any future settlement negotiations or judicial proceedings to resolve any such claims. However, the City does not anticipate that any such proceedings would materially affect the City's ability to meet debt service requirements on the Bonds. Conflicts of Interest All or a portion of the fees of the Underwriter, Financial Advisor and Bond Counsel are contingent upon the issuance and sale of the Bonds. In addition, Bond Counsel from time to time serves as counsel to the Underwriter with respect to bonds issued by issuers other than the City. None of the Council members or other officers of the City have any conflict of interest in the issuance of the Bonds that is prohibited by applicable law. Underwriting The Bonds are being purchased by the Underwriter. The purchase contract provides that the Underwriter will purchase all of the Bonds, if any are purchased, at a price of percent of the par value of the Bonds. The Bonds will be reoffered at an average price of percent of the par value of the Bonds. After the initial public offering, the public offering prices may be varied from time to time. The Underwriter has entered into an agreement (the "Agreement") with Pershing LLC ("Pershing"), a subsidiary of the Bank of New York Mellon Corporation, for the distribution of certain municipal securities offerings allocated to Piper at the original offering prices. Under the Agreement, if applicable to the Bonds, the Underwriter will share with Pershing a portion of the fee or commission, exclusive of management fees, paid to the Underwriter. The Underwriter of the Bonds, has entered into a distribution agreement ("Distribution Agreement's with Charles Schwab & Co., Inc. ("CS&Co") for the retail distribution of certain securities offerings at the original issue prices. Pursuant to the Distribution Agreement, CS&Co. will purchase Bonds from the Underwriter at the original issue price less a negotiated portion of the selling concession applicable to any Bonds that CS&Co. sells. CONCLUDING STATEMENT So far as any statement herein includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they are intended merely as such and not as representations of fact. The information contained herein should not be construed as representing all conditions affecting the City or the Bonds. Additional information may be obtained from the City. The statements relating to the Ordinance are in summarized form, and in all respects are subject to and qualified in their entirety by express reference to the provisions of such document in its complete form. The agreements of the City are set forth in such documents, and the information assembled herein is not to be construed as a contract with Owners of the Bonds. The preparation and distribution of this Official Statement have been authorized by the City. 35 Page 303 of 321 APPENDIX A CERTAIN DEFINITIONS Certain terms used in this Official Statement that are not specifically defined herein have the meanings as set forth in the Bond Ordinance. The following terms shall have the following meanings in this Official Statement as defined in the Bond Ordinance: "2002 Bonds" means the Water and Sewer Revenue Bonds, 2002, issued pursuant to Ordinance No. 3567. "2005 Bonds" means the Water and Sewer Revenue Bonds, 2005, issued pursuant to Ordinance No. 3740. "2007 Bonds" means the Water and Sewer Revenue Bonds, 2007, issued pursuant to Ordinance No. 3835. "2009 Bonds" means the Water and Sewer Revenue Bonds, 2009, issued pursuant to Ordinance No. 3195. "2010A Bonds" means the Water and Sewer Improvement and Refunding Revenue Bonds, 2010A, issued pursuant to Ordinance No. 3962. "2010T Bonds" means the Water and Sewer Refunding Revenue Bonds, 2010T (Taxable), issued pursuant to Ordinance No. 3962. "2013A Bonds" means the Water and Sewer Revenue Bonds, 2013A, issued pursuant to Ordinance No. 4126. "2013T Bonds" means the Water and Sewer Revenue Bonds, 2013T (Taxable), issued pursuant to Ordinance No. 4126. "Alternate Security" means any bond insurance, collateral, security, letter of credit, guaranty, surety bond or similar credit enhancement device providing for or securing the payment of all or part of the principal of and interest on any specified Parity Bonds, issued by an institution which has been assigned a credit rating at the time of issuance of the applicable Parity Bonds, respectively, secured by such Alternate Security in the highest rating categories by both Moody's Investors Service, Inc., and Standard & Poor's Ratings Services. "Annual Debt Service" for any or all Parity Bonds for any year means all the interest, plus all principal which will mature or come due in such year, less all bond interest payable from the proceeds of any such bonds in that year. "Assessment Bonds" means, at the time of determination, Parity Bonds then outstanding equal to the sum of the nondelinquent unpaid principal amount of ULID Assessments then outstanding plus any ULID Assessment payments then on deposit in the Principal and Interest Account of the Bond Fund. Assessment Bonds shall be allocated to each remaining maturity of Parity Bonds in the same proportion as the total of the Assessment Bonds relates to the total of the Parity Bonds then outstanding. "Average Annual Debt Service" means, at the time of its calculation, the sum of the Annual Debt Service for the remaining years to the last scheduled maturity of the applicable Parity Bonds divided by the number of those years. "Bond Fund" means the Water and Sewer Revenue and Refunding Bond Redemption Fund, 1991, of the City created and established by Ordinance No. 2846 in the office of the Finance Manager of the City for the payment of the principal of and interest on the Parity Bonds. "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of identifying ownership of the Bonds. "Bond Registrar" means the Fiscal Agent, or any successor Bond Registrar selected by the City. "Bonds" means the Water and Sewer Improvement and Refunding Revenue Bonds, 2015, issued pursuant to the Bond Ordinance. "City" means the City of Pasco, Washington, a municipal corporation duly organized and existing under the laws of the State. "Code" means the United States Internal Revenue Code of 1986, as amended, and applicable rules and regulations promulgated thereunder. A-1 Page 304 of 321 "Coverage Requirement" in any year means an amount of Net Revenue of the Waterworks Utility, together with the ULID Assessments collected in that year, equal to at least the Maximum Annual Debt Service on all Assessment Bonds plus an amount of the Net Revenue of the Waterworks Utility not used to calculate the Coverage Requirement on Assessment Bonds equal to at least 1.25 times Maximum Annual Debt Service on all bonds payable from the Bond Fund that are not Assessment Bonds. "DTC" means The Depository Trust Company, New York, New York, or its nominee. "Deputy Director" means the City's Deputy Director of Administrative and Community Services or such other officer of the City who succeeds to substantially all of the responsibilities of that office. "Fiscal Agent" means the fiscal agent of the State, as the same may be designated by the State from time to time. "Future Parity Bonds" means any and all water and sewer revenue bonds or other obligations of the City issued or incurred after the date of the issuance of the Bonds pursuant to the provisions of the Parity Bond Ordinances, the payment of the principal of and interest on which constitutes alien and charge upon the Net Revenue of the Waterworks Utility and ULID Assessments on a parity with the lien and charge upon such Net Revenue and ULID Assessments for the Outstanding Parity Bonds and the Bonds, but shall not include variable rate obligations. "Government Obligations" has the meaning given in RCW 39.53.010, as now in effect or as may hereafter be amended. "Gross Revenue of the Waterworks Utility" or "Gross Revenue" means all of the earnings and revenues received by the City from the maintenance and operation of the Waterworks Utility and all earnings from the investment of money on deposit in the Bond Fund, except ULID Assessments, government grants, proceeds from the sale of Waterworks Utility property, City taxes collected by or through the Waterworks Utility, principal proceeds of bonds and earnings or proceeds from any investments in a trust, defeasance or escrow fund created to defease or refund Waterworks Utility obligations (until commingled with other earnings and revenues of the Waterworks Utility) or held in a special account for the purpose of paying a rebate to the United States Government under the Code. "Letter of Representations" means the Blanket Issuer Letter of Representations between the City and DTC dated August 31, 1998. "Maximum Annual Debt Service" means, at the time of calculation, the maximum amount of Annual Debt Service that will mature or come due in the current year or any future year on the outstanding Parity Bonds. "MSRB" means the Municipal Securities Rulemaking Board. "Net Revenue of the Waterworks Utility" or "Net Revenue" means the Gross Revenue less Operating and Maintenance Expenses. "Operating and Maintenance Expenses" means all reasonable expenses incurred by the City in causing the Waterworks Utility to be operated and maintained in good repair, working order and condition, including payments made to any other municipal corporation or private entity for water service and for sewage treatment and disposal service or other utility service in the event the City combines such service in the Waterworks Utility and enters into a contract for such service, but not including any depreciation or taxes levied or imposed by the City or payments to the City in lieu of taxes, or capital additions or capital replacements to the Waterworks Utility. "Outstanding Parity Bonds" means the outstanding 2002 Bonds, 2005 Bonds, 2007 Bonds, 2009 Bonds, 2010A Bonds, 2010T Bonds, 2013A Bonds and 2013T Bonds. Outstanding Parity Bonds shall not include any Refunded Bonds. "Owner" means, without distinction, the Registered Owner and the Beneficial Owner. "Parity Bond Ordinances" means Ordinance No. 3567, Ordinance No. 3740, Ordinance No. 3835, Ordinance No. 3195, Ordinance No. 3962, Ordinance No. 4126 and the Bond Ordinance. "Parity Bonds" means the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds. "Principal and Interest Account" means the account of that name created in the Bond Fund for the payment of the principal of and interest on all Parity Bonds. A-2 Page 305 of 321 "Record Date" means the Bond Registrar's close of business on the 15th day of the month preceding an interest payment date. With respect to redemption of a Bond prior to its maturity, the Record Date shall mean the Bond Registrar's close of business on the date on which the Bond Registrar sends the notice of redemption. "Reserve Account" means the account of that name created in the Bond Fund for the purpose of securing the payment of the principal of and interest on the Parity Bonds. "Reserve Insurance" means, in lieu of cash and investments, insurance obtained by the City to fund all or a portion of the Reserve Requirement for any Parity Bonds then outstanding for which such insurance is obtained; and for the Outstanding Parity Bonds and the Bonds means the Surety Bond provided by the Reserve Insurer. "Reserve Insurer" means Ambac Assurance Corporation for the Outstanding Parity Bonds and the Bonds. "Reserve Requirement" means: (1) For the Outstanding Parity Bonds and the Bonds, an amount equal to the least of (a) 10% of the issue price of the then outstanding Parity Bonds, (b) Maximum Annual Debt Service on the then outstanding Parity Bonds and (c) 1.25 times Average Annual Debt Service on the outstanding Parity Bonds. For the purposes of determining Maximum Annual Debt Service and Average Annual Debt Service for calculating the Reserve Requirement, all bonds payable or proposed to be paid from the Bond Fund shall be treated as a single issue and the number of years to the last scheduled maturity for any of those issues shall be used as the denominator. (2) For any Future Parity Bonds, an amount equal to the difference between the Reserve Requirement for the then outstanding Parity Bonds and the least of (a) 10% of the issue price of the then outstanding Parity Bonds and the Future Parity Bonds proposed to be issued, (b) Maximum Annual Debt Service on the then outstanding Parity Bonds and the Future Parity Bonds proposed to be issued and (c) 1.25 times Average Annual Debt Service on the outstanding Parity Bonds and the Future Parity Bonds proposed to be issued, but in no event to exceed an amount equal to the least of 10% of the issue price of the proposed Future Parity Bonds, Maximum Annual Debt Service on those bonds and 1.25 times Average Annual Debt Service on the proposed bonds. For the purposes of determining Maximum Annual Debt Service and Average Annual Debt Service for calculating the Reserve Requirement, all bonds payable or proposed to be paid from the Bond Fund shall be treated as a single issue and the number of years to the last scheduled maturity for any of those issues shall be used as the denominator. "Rule 15c2-12" means Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934, as amended. "SEC" means the United States Securities and Exchange Commission. "State" means the State of Washington. "Surety Bond" means the surety bond issued by the Reserve Insurer guaranteeing certain payments into the Reserve Account with respect to the Outstanding Parity Bonds and the Bonds as provided in and subject to the limitations set forth in that surety bond. "Term Bonds" means those bonds of any single issue or series of Parity Bonds designated as such pursuant to the ordinance authorizing their issuance and sale and which are subject to mandatory prior redemption or for which mandatory sinking fund installments are provided. "ULID" means utility local improvement district. "ULID Assessments" means all ULID assessments and installments thereof, plus interest and penalties thereon, in any ULID created to secure the payment of any Parity Bonds and pledged to be paid into the Bond Fund. "Water and Sewer Revenue Fund" means that special fund of the City into which all of the Gross Revenue of the Waterworks Utility of the City shall be deposited. "Waterworks Utility" means the combined sewerage system and water system of the City, together with the storm or surface water sewers and agricultural/industrial wastewater treatment facilities heretofore or hereafter authorized to be constructed and installed as a part of such combined systems, and together with all additions thereto and betterments and extensions thereof now or hereafter made. A-3 Page 306 of 321 APPENDIX B 2014 AUDITED FINANCIAL STATEMENTS Page 307 of 321 APPENDIX C FORM OF LEGAL OPINION Page 308 of 321 M FOSTER PEPPER.... [FORM OF APPROVING LEGAL OPINION] City of Pasco, Washington Re: City of Pasco, Washington, $ Water and Sewer Improvement and Refunding Revenue Bonds, 2015 We have served as bond counsel to the City of Pasco, Washington (the "City"), in connection with the issuance of the above referenced bonds (the "Bonds"), and in that capacity have examined such law and such certified proceedings and other documents as we have deemed necessary to render this opinion. As to matters of fact material to this opinion, we have relied upon representations contained in the certified proceedings and other certifications of public officials furnished to us, without undertaking to verify the same by independent investigation. The Bonds are issued by the City pursuant to Ordinance No. (the "Bond Ordinance") to provide funds (1) to pay the cost of carrying out the Plan of Additions adopted by the Bond Ordinance, (2) to refund certain outstanding water and sewer revenue bonds of the City, (3) to make a deposit to the Reserve Account and (4) to pay the costs of issuance and sale of the Bonds, all as set forth in the Bond Ordinance. Reference is made to the Bonds and the Bond Ordinance for the definitions of capitalized terms used and not otherwise defined herein. We express no opinion herein concerning the completeness or accuracy of any official statement, offering circular or other sales or disclosure material relating to the issuance of the Bonds or otherwise used in connection with the Bonds. Under the Internal Revenue Code of 1986, as amended (the "Code"), the City is required to comply with certain requirements after the date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes, including, without limitation, requirements concerning the qualified use of Bond proceeds and the facilities financed or refinanced with Bond proceeds, limitations on investing gross proceeds of the Bonds in higher yielding investments in certain circumstances and the arbitrage rebate requirement to the extent applicable to the Bonds. The City has covenanted in the Bond Ordinance to comply with those requirements, but if the City fails to comply with those requirements, interest on the Bonds could become taxable retroactive to the date of issuance of the Bonds. We have not undertaken and do not undertake to monitor the City's compliance with such requirements. TEL: 206.447.4400 FAx: 206.447.9700 1111 THIRD AVENUE, SUITE 3400 SEATTLE, WASHINGTON 98101-3299 WWW.FOSTER.com SEATTLE WASHINGTON SPOKANE WASHINGTON Page 309 of 321 City of Pasco, Washington [Date] Page 2 Based upon the foregoing, as of the date of initial delivery of the Bonds to the purchaser thereof and full payment therefor, it is our opinion that under existing law: 1. The City is a duly organized and legally existing code city under the laws of the State of Washington. 2. The Bonds have been duly authorized and executed by the City and are issued in full compliance with the provisions of the Constitution and laws of the State of Washington and the ordinances of the City relating thereto. 3. The Bonds constitute valid obligations of the City payable solely out of the Net Revenue of the Waterworks Utility and ULID Assessments to be paid into the Bond Fund, except only to the extent that enforcement of payment may be limited by bankruptcy, insolvency or other laws affecting creditors' rights and by the application of equitable principles and the exercise of judicial discretion in appropriate cases. 4. The Bonds are not general obligations of the City. 5. Assuming compliance by the City after the date of issuance of the Bonds with applicable requirements of the Code, the interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals; however, while interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the Bonds received by corporations is to be taken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporations, interest on the Bonds received by certain S corporations may be subject to tax, and interest on the Bonds received by foreign corporations with United States branches may be subject to a foreign branch profits tax. We express no opinion regarding any other federal tax consequences of receipt of interest on the Bonds. This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. We bring to your attention the fact that the foregoing opinions are expressions of our professional judgment on the matters expressly addressed and do not constitute guarantees of result. Respectfully submitted, C-2 Page 310 of 321 APPENDIX D BOOK -ENTRY SYSTEM The following information has been provided by DTC. The City takes no resjionsibility for the accuracy or com-pleteness thereof, or for the absence of material changes in such information subsequent to the date hereof. Beneficial Owners should confirm the following with DTC or the ParticPants (as hereinafter defined). The Depository Trust Company ("DTC', New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered Bond certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount represented by such Bonds, and will be deposited with DTC. DTC, the world's largest depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants' deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of Bond certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com (which website is not incorporated herein by reference). Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond (`Beneficial Owner' is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are expected, however, to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are to be registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. When notices are given, they shall be sent by the Fiscal Agent to DTC only. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. D-1 Page 311 of 321 Redemption notices shall be sent to DTC. If less than all of the Bonds of a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments on the Bonds will be made to Cede & Co. or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Bond Registrar, on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and are the responsibility of such Participant and not of DTC, the Bond Registrar or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payments to Cede & Co. (or any other nominee as may be requested by an authorized representative of DTC) are the responsibility of the City or the Bond Registrar, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the City or the Bond Registrar. Under such circumstances, in the event that a successor depository is not obtained, Bonds are required to be printed and delivered. The City may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor securities depository). In that event, Bonds will be printed and delivered to DTC. The information in this appendix concerning DTC and DTC's book -entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. D-2 Page 312 of 321 2015-2016 Projects for W/S Revenue Bonds Project Name 2015 2016 Description Construct a sludge drying bed between the existing Butterfield WTP- Sludge Drying Bed 100,000 104,000 backwash ponds. East side Water Booster Pump Station was built in 1983. East Side Booster Pump Station 480,000 669,400 No pump upgrades have been performed since that time, The existing telemetry system will require an upgrade. The meter is old and there is no back-up generator. Replace two old 24 inch leaking main valves at the Butterfield WTP 24 In. Valve Replacement 122,858 243,142 Butterfield water plant. Columbia Water Supply Project State Revolving Fund Loan This project will install a new water main in Oregon Avenue during the proposed corridor upgrade project Oregon Avenue Water Line (Phase I) 100,000 1,000,000 between the 1-182/US 1.2 Interchange and Ainsworth Avenue. 2015 Water line (Asbestos Cement) Replacement (various This project was started in 2015 and consists of replacing Locations) 19,000 203,000 asbestos cement water lines with ductile iron pipe and reconnecting existing water services and appurtenances. This project will install approximately 12,300 linear feet Wernett Pipeline 25,000 70,000 of 12" ductile iron water line from Road 48 to Road 84. After installation of the water line, existing water services and appurtenances will be reconnected. Annual Water Line Upsize Match Does this project qualify? $100,000 each year Butterfield - South Basin Drain Bypass 70,000 This project will reconstruct the existing access driveway Butterfield - Fluoride Rm Tank Truck Access 65,000 to allow drive -up service to the Fluoride Building from S. 13th Avenue. This project consists of the installation of air scrub Butterfield WTP- Chlorine Safety Improvements 500,000 equipment at the Butterfield WTP. 916,858 2,854,542 3,771,400 v c.Q CD CA) w 0 w N 2016 Sewer Projects Project Name 2015 2016 Description Annual Sewer Line Extensions Qualify? ($90,000 2015, $100,000 2016) Annual Sewer Line Re -lining Program Qualify? ($293,000 2015, $300,000 2016) This project involves installation of two new primary clarifiers, a new primary sludge pumping room, and a new scum pump station, modifications to the existing WWTP Primary Clarifier No. 3 2,370,000 2,430,000 headworks channel, and associated mechanical, electrical, instrmentation, yard piping, and other site work. The City of Pasco (City) has partnered with the Miller Family Trust (developer) to design and construct a new sanitary sewer lift station near the intersection of Capitol Capitol Lift Station 320,000 Highway and Hillsboro Avenue. The lift station will initially serve the Genesis Business Park which is owned by the Developer. The Phase 1 lift station will have the capacity to serve the 130 -acre business park and an additional 53 acres within the larger service area. This project consists of adding a 14" sanitary sewer force Kahlotus Lift Station Force Main Pipe 200,000 main from the Kahlotus Lift Station, south along Commercial Avenue, to the existing casing located under US 395. Retrofit Secondary Digester #1 60,000 This project consists of retrofitting this digester from secondary to a primary digester. The existing Grit Classifiers have met their useful life. The units are wearing out and need replaced before complete Replace Grit Clarifiers 108,000 failure which could overload primary digesters with inorganics that can ultimately violate our biosolids permit. This project consists of changing the intake which will alleviate freezing and ice buildup on filters, extend the Turbo Compressor Inlet Suction Retrofit 25,000 100,000 life of the filters and will increase inlet suction size to correct specs. This retrofit will also accommodate future blowers. Maitland Lift Station - Purchase/Install 4th Pump 75,000 2,470,000 4,471,000 6,941,000 2015 2016 Water 916,858 2,854,542 Sewer 2,470,000 4,471,000 3,386,858 7,325,542 10,712,400 Currently we only have one DAFT to handle the City's secondary waste activated sludge. The internal components are wearing out and need replacing. This Waste Activated Thickening 975,000 project consists of replacing all the interior components of the existing DAFT. It would also add a second DAFT to meet future growth needs by 2019 as outlined in the Sewer Master Plan.. Pearl Street Lift Station needs to be upgraded or replaced Pearl Street Lift Station Replacement 170,000 to accommodate new pumps, we well, piping, electrical and telemetry. This lift station currently has smaller pumps that need to be replaced to meet the needs of future growth. The 9th & WA Lift Station 78,000 discharge piping in the building needs to be increased to allow for greater flow capacity and flexibility of operations. The upgrades will consist of purchasing a spare pump, Road 36 Lift Station Upgrades 30,000 replacing motor controls and telemetry, replacing valves and installing fiber for communications. 2,470,000 4,471,000 6,941,000 2015 2016 Water 916,858 2,854,542 Sewer 2,470,000 4,471,000 3,386,858 7,325,542 10,712,400 AGENDA REPORT FOR: City Council November 20, 2015 TO: Dave Zabell, City Manager Regular Meeting: 11/30/15 FROM: Rick Terway, Director Administrative & Community Services SUBJECT: 2015 Operating & CIP End -of -Year Budget Amendment I. REFERENCE(S): Proposed 2015 Operating End -of -Year Budget Supplement Ordinance Proposed 2015 CIP End -of -Year Budget Supplement Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Refer to Ordinances IV. HISTORY AND FACTS BRIEF: The items recommended to be included in the Supplemental Budget are for expenditures and/or revenues that were unanticipated or indeterminable at the time of the 2015 Budget preparation. Staff is requesting Council authorization for these transactions. Resources for the expenditures are: 1. Unanticipated revenues 2. Contributions from other funds 3. Fund balances V. DISCUSSION: Staff recommends approval of the supplemental budgets. Page 316 of 321 ORDINANCE NO. AN ORDINANCE AMENDING THE 2015 ANNUAL OPERATING BUDGET OF THE CITY OF PASCO BY PROVIDING SUPPLEMENT THERETO; BY APPROPRIATING REVENUE RECEIVED IN EXCESS OF ESTIMATED REVENUES FOR THE CURRENT YEAR AND BY PROVIDING TRANSFERS AND ADJUSTMENT AUTHORITY WHEREAS, staff has identified the need to make certain revisions to the 2015 Annual Operating budget originally adopted through Ordinance No. 4187 on December 15, 2014 and WHEREAS, a Public Hearing has been held subsequent to due notice, and the City Council has after consideration, deemed the proposed Supplement to the Annual Operating Budget necessary and appropriate; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: §1. Pursuant to RCW 35A.33.120, the 2015 Operating Budget be and the same is hereby amended to provide for the following adjustments to revenue and expenditures, and by providing authority for any necessary transfer of money within or between funds indicated. FUND REVENUES EXPENSES NET CHANGE 100 GENERAL FUND (328,059) 203,203 531,262 110 STREET FUND 45,800 215,800 170,000 120 ARTERIAL STREET FUND - 528,034 528,034 125 1-182 CORRIDOR TRAFFIC IMPACT 220,000 220,000 130 STREET OVERLAY FUND - - - 14X CD GRANT FUND 700,903 470,000 (230,903) 145 MARTIN LUTHER KING FUND 5,000 - (5,000) 150 AMBULANCE FUND - 160 CEMETERY FUND 161 BOULEVARD MAINTENANCE FUND - - - 166 Golf Course Fund 75,000 190,000 115,000 170 SENIOR CENTER FUND - - - 180 MULTI MODAL FUND 20,000 20,000 185 RIVERSHORE TRAIL & MARINA FUND 10,000 10,000 188 SPECIAL ASSESSMENT LODGING 47,000 47,000 189 LITTER ABATEMENT FUND - - - 190 REVOLVE ABATEMENT FUND 70,000 172,000 102,000 191 TRAC FUND - - - 192 PARK DEVELOPMENT - 10,300 10,300 193 CAPITAL IMPROVEMENT FUND 150,000 20,100 (129,900) 194 ECONOMIC DEVELOPMENT FUND - 33,100 33,100 195 STADIUM FUND - - 2XX LID DEBT FUND - - 367 GENERAL CONSTRUCTION FUND 565,450 358,900 (206,550) 410 WATER/SEWER UTILITY FUND - 266,814 266,814 510 GOVT EQUIPMENT RENTAL O&M FUND 6,000 40,300 34,300 511 BUSINESS EQUIPMENT RENTALO&M FUND 15,000 10,500 (4,500) 515 GOVT EQUIPMENT REPLACE FUND 91,000 91,000 516 BUSINESS EQUIPMENT REPLACE FUND - - - 521 MEDICAL DENTAL FUND - 58,000 58,000 522 DENTAL FUND 58,000 120,000 62,000 610 OLD FIRE PENSION - - - 619 OLD FIRE OPEB - - - TOTAL CITY WIDE OPERATING BUDGET 1,454,094 3,085,051 1,630,957 Page 317 of 321 The above items are shown as revenues and appropriations to specific budgets and items within budgets in the attachment marked "Exhibit 1 — 2015 Budget Supplement' the Expenditure/Revenue detail, which is incorporated herein as though fully set forth. §2. That the additions in appropriations and expenditures are hereby declared to exist in the above funds for the said uses and purposes as shown above and in the Exhibit and the proper City officials are hereby authorized and directed to issue warrants and transfer funds in accordance with the provision of the Ordinance §3. This Ordinance shall take effect five (5) days after passage and publication. Adopted by the City Council of the City of Pasco, on this 7th day of December, 2015. City of Pasco: Matt Watkins, Mayor Attest: Debra Clark, City Clerk Approved As To Form: Leland B. Kerr, City Attorney Page 318 of 321 ORDINANCE NO. AN ORDINANCE RELATING TO SUPPLEMENTAL CAPITAL IMPROVEMENT PROJECTS BUDGET FOR THE YEAR 2015. WHEREAS, staff has identified the need to make certain revisions to the 2015 Capital Improvement budget originally adopted through Ordinance No. 4188 on December 15, 2014, and WHEREAS during the year 2015 additional capital improvement expenditures became necessary that were unanticipated and a need exists requiring a Supplement to provide for such expenditure authority, and WHEREAS a Public Hearing has been held subsequent to due notice, and the City Council has after consideration, deemed the proposed Supplement to the Capital Improvements Projects Budget necessary and appropriated; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: §l. The following capital improvement projects hereby authorized, budgets amended and projects closed as detailed below: Project Title General Projects (2014 Continued) Police Training Building Fire Station 81 Mobile Home Fire station Alerting Devices Fire Alerting Systems Muni Courthouse Police Station Financial System - HR & Payroll Financial System - Financials Financial System -Utility & Proj Acctg Total General Projects (2014) Park & Facilities (2014 Continued) Animal Shelter Facility 30 Acre Park NW Quad Three Rivers Park Memorial Shelter & ADA Path Kurtzman Park Playground Equipment Repl Volunteer Park Playgroune Equipment Repl Richardson Pool Demolition Total Park & Facilities (2014) Park & Facilities (New 2015) Railroad Underpass Trail Total Park & Facilities (2015) E & I Develop (2014 Continued) Farm Share - Valve/Meter/SCADA 2014 Replace Total E & I Projects (2014) E & I Develop (2015 New) Broadmoor Master Planning Farm Circle 7 - Swing Arm Total E & I Development Construction (2015) Street Construction (2014 Continued) Roads Road 68 Improvements (Phase II) Powerline Road Argent Road (Road 44 to 20th Ave) Oregon Ave (SR397) - Phase 1 Page 319 of 321 Supplement 2 CIP Budget Increase/ New 2015 New Total 2015 (Decrease) Project CIP Authority 70,000 70,000 50,000 50,000 45,000 45,000 285,000 285,000 3,874,566 3,874,566 6,747,429 6,747,429 196,548 196,548 235,999 235,999 292,687 292,687 11,797,229 - 11,797,229 203,000 203,000 950,000 950,000 455,000 455,000 100,000 58,000 158,000 130,000 130,000 130,000 130,000 161,938 (54,900) 107,038 1,869,938 3,100 260,000 2,133,038 35,000 35,000 35,000 - 35,000 107,760 107,760 107,760 - 107,760 165,000 5,600 170,600 125,000 125,000 290,000 5,600 - 295,600 1,960,008 1,960,008 1,190, 907 1,190,907 831,212 831,212 828,400 828,400 Page 319 of 321 Page 320 of 321 Supplement 2 CIP Budget Increase/ New 2015 New Total Project Title 2015 (Decrease) Project CIP Authority Oregon Ave (SR397) - Phase 2 310,560 310,560 Oregon Ave (SR397) - Entrance (Ph 2 Intersection) 192,617 192,617 Lewis Street Demolish - Phase 1 771,333 771,333 Dual RT SB Road 68 663,275 663,275 Road 68 - Triple Right 105,000 105,000 20th Ave Access Management 815,000 50,000 865,000 2014 Alley Hard Surfacing (Chip Sealing) 215,600 18,900 234,500 Sylvester Neighborhood - ParkSt (5th) 100,000 100,000 Signals Interconnect Road 68 Signals 376,318 376,318 Traffic Signal Controller Upgrade 541,711 541,711 Ramps & Under/Over Passes Downtown Circulation (Lewis St One Way Couplets) 428,600 428,600 Lewis St Overpass 6,017,726 6,017,726 Total Street Construction (2014) 15,348,267 68,900 - 15,417,167 Street Construction (New 2015) Roads Chapel Hill Extension - Street 60,000 60,000 2015 Alley Hard Surfacing (Chip Sealing) 135,600 135,600 Signals Traffic Signal at Sandifur Parkway & Midland Lane. - 30,000 30,000 Road 68 & Court St Signal - - Total StreetConstruction (2015) 195,600 30,000 225,600 Water Construction (2014 Continued) Columbia Water Supply Project 4,819,550 4,819,550 East Side Booster Station Upgrade (BS 2.1) 510,000 510,000 Butterfield WTP 24 In. Valve Replace 14,284 6,000 20,284 Butterfield WTP - South Basin Drain By -Pass 70,000 70,000 Butterfield WTP -Intake Screens 1,479,077 1,479,077 Distribution - Extensions Wernett Pipeline 25,000 (25,000) - WTR Line Ext - County Rd 100/Dent Rd 372,500 372,500 2014 Annual Water Line Ext 210,467 200 210,667 Water Line Extension - PWRF 60,000 (60,000) Total Water Construction (2014) 7,560,878 (78,800) - 7,482,078 Water Construction (New 2015) Plants, Meters, & Pump Stations Water Master Plan 100,000 100,000 Butterfield WTP Sludge drying bed 100,000 100,000 Oregon Avenue Water line 100,000 100,000 3" Poly Water Main Loop 200,000 200,000 Comprehensive Water System Plan 80,000 80,000 Distribution - Extensions 2015 Annual Water Line Upsize Match 100,000 100,000 Distribution - Replacement 2015 Water Line Replacement 19,000 19,000 Total Water Construction (2015) 699,000 - - 699,000 Irrigation Construction (2014 Continued) Well House - Linda Loviisa 59,900 668 60,568 2014 Well House - First Place 144 144 Total Irrigation Construction (2014) 60,044 668 - 60,712 Irrigation Construction (New 2015) Well House Additions Road 52 10,000 10,000 Freshwater Mussels Study 25,000 25,000 Irrigation Line Ext - Chapel Hill 10,000 10,000 Total Irrig Construction (2015) 45,000 45,000 Sewer Construction (2014 Continued) Plant and Lift Stations 2014 WWTP Imp - Screw Press 500,000 500,000 WWTP - Primary Clarifier No. 3 2,621,763 2,621,763 Collections - Extensions Page 320 of 321 Project Title 30" Main (NW Area) Collections - Replacements 2014 Annual Sewer Line Re -lining Program West Pasco Trunk Sewer Repair Total Sewer Construction (2014) Sewer Construction (New 2015) Plant and Lift Stations Plant Roof Railing Caustic Soda Improvements Maitland Lift Station - Purchase/Install 4th Pump Turbo Compressor inlet suction retrofit Dystol Panel Collections - Extensions 2015 Annual Sewer Line Extension Chapel Hill Blvd. Extension - Sewer Collections - Replacements 2015 Annual Sewer Line Re -lining Program Total Sewer Construction (2015) PWRF Construction (2014 Continued) Phase 3 - BOD Anaerobic Pond (8 MG) Phase 5 EQ Basin Rebuild Phase EQ Plant Expansion PWRF Master Plan Phase 3 - BOD- Screw Press Phase 6 - Valve/Meter/SCADA 2014 Replace Total PWRF Construction (2014) Stormwater Construction (2014 Continued) Storm RetroFit ($100K of $170K) Total Stormwater Construction (2014) Stormwater Construction (New 2015) Chapel Hill Blvd Extend - Stormwater Total Stormwater Construction (2015) TOTAL CIP BUDGET TOTAL 2014 CONTINUING TOTAL 2015 NEW TOTAL CIP BUDGET AMENDMENT Supplement 2 CIP Budget Increase/ 2015 (Decrease) 322,000 (150,000) 182,992 175,000 1,314,557 4,941,312 25,000 125,000 270,000 10,000 75,000 25,000 70,000 6,000 300,000 110,000 975,000 16,000 1,647,950 4,000 4,000 40,000 255,000 100,817 80,000 2,051,767 80,000 150,000 150,000 New 2015 New Total Project CIP Authority 172,000 357,992 _ 1,314,557 4,966,312 125,000 280,000 75,000 25,000 76,000 300,000 _ 110,000 991,000 1,647,950 4,000 4,000 40,000 255,000 180,817 2,131,767 150,000 - 150,000 10,000 10,000 10,000 - - 10,000 46,136,795 120,468 290,000 46,547,263 120,468 290,000 410,468 §2. This Ordinance shall take effect five (5) days after passage and publication. Adopted by the City Council of the City of Pasco, on this 7th day of December, 2015. City of Pasco: Matt Watkins, Mayor Attest: Debra Clark, City Clerk Approved As To Form: Leland B. Kerr, City Attorney Page 321 of 321