HomeMy WebLinkAbout2015 ACFR
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF PASCO, WASHINGTON
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2015
Prepared by:
Finance Division
Ron Musson – Interim Finance Manager
Administrative and Community Services Department
Richard G. Terway – Director
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ……………………………………………………………………………….. 1
Certificate of Achievement for Excellence in Financial Reporting………………………………… 6
Organizational Chart ………………………………………………………………………………. 7
Directory of City Officials and Management Team……………………………………………….. 8
FINANCIAL SECTION
Independent Auditor’s Report ………………………………………………………………...…… 9
Management’s Discussion and Analysis ………………………………………………………….. 13
Basic Financial Statements
Government Wide Financial Statements
Statement of Net Position…………………………………………........................................... 26
Statement of Activities…………………………………………………………………………. 27
Fund Financial Statements
Balance Sheet – Governmental Funds ......................................................................................... 28
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds.. 29
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balance of
Governmental Funds to the Statement of Net Activities.……..…………….…………..…… 30
Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual-
General Fund…………………………………………………………………………………. 31
Statement of Net Position - Proprietary Fund…………………….…………………………….. 32
Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds………….. 33
Statement of Cash Flows – Proprietary Fund ………………………………………………….. 34
Statement of Net Position – Fiduciary Funds…………………………………………………… 35
Statement of Changes in Net Position – Fiduciary Funds.………………………………..……… 36
Notes to the Financial Statements….…………………….…………………………….……………. 37
Required Supplementary Information
Firemen’s OPEB Fund/Other LEOFF 1 OPEB………………………………………………. 84
Schedule of Proportionate Share of the Net Pension Liability PERS 1 Plan/PERS 2&3 Plan.. 85
Schedule of Proportionate Share of the Net Pension Liability LEOFF 1 Plan/LEOFF 2 Plan.. 86
Schedule of Employer Contributions PERS 1 Plan/PERS 2 Plan…………………………….. 87
Schedule of Employer Contributions LEOFF 1 Plan/LEOFF 2 Plan…………………………. 88
Combining and Individual Fund Statements
Combining Balance Sheet – Nonmajor Other Governmental Funds ………………………….. 90
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Other Governmental Funds ……………………………………………………….. 91
Combining Balance Sheet – Nonmajor Special Revenue Funds …………………………….. 92
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Special Revenue Funds……………………………………………………………. 96
Combining Balance Sheet – Nonmajor Debt Service Funds…….…………………………….. 100
Combining Statement of Revenues, Expenditures and Changes in Fund Balance-
Nonmajor Debt Service Funds…………………………………………………………….... 101
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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TABLE OF CONTENTS (continued)
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual
Major Construction Fund.…………………….……………………………………………… 102
Schedule of Revenues and Expenditures–Budget to Actual–Nonmajor Other Governmental
Funds ……………………………………………………………………………………….. 103
Combining Statement of Net Position – Nonmajor Internal Service Funds…………………… 106
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Nonmajor Internal Service Funds…..………..……………………………………………… 107
Combining Statement of Cash Flows – Nonmajor Internal Service Funds................................ 108
Combining Statement of Net Position– Fiduciary Funds……………………………..………. 110
Combining Statement of Changes in Net Position – Fiduciary Funds…...…………..……….. 112
Combining Statement of Changes in Assets and Liabilities – Agency Funds…………………. 113
STATISTICAL SECTION
Financial Trends
Net Position by Component……………………............................................................................ 117
Changes in Net Position……….................................................................................................... 118
Governmental Activities Tax Revenues by Source…………………..………..………………… 120
Fund Balances of Governmental Funds………………….............................................................. 121
Changes in Fund Balances of Governmental Funds…………………........................................... 122
Revenue Capacity
Assessed Value of Taxable Property .......................................................................................... 123
B&O Taxes by Type / Property Tax Rates .................................................................................. 124
Taxable Retail Sales / Principal Property Taxpayers……………………................................... 125
Principal B&O Taxpayers ………………………………………………..............……………. 126
Top Ten Industries that Generate Sales Tax…………………………………………………….. 127
Property Tax Levies and Collections…………………................................................................. 128
Debt Capacity
Ratios of Outstanding Debt by Type/Ratio of General Bonded Debt Outstanding....................... 129
Legal Debt Margin……………………………............................................................................. 130
Direct and Overlapping Governmental Activities Debt……………………………………...... 131
Waterworks Utility Debt Service Coverage……........................................................................... 132
Demographic and Economic Information
Demographic and Economic Statistics.......................................................................................... 133
Principal Employers…………………………………………...................................................... 134
Non Agriculture Wage and Salary Workers…………………………………………………….. 135
Building Permits………………………………………………………………………………… 136
Operating Information
Full Time Equivalent City Government Employees by Function…………………………........ 137
Operating Indicators by Function………………………………………………………………. 138
Building Permits………………………………………………………………………………… 139
Capital used by Function……………………………………………………………………….. 140
Waterworks Utility Customers …………………………………..…..…………………………. 141
Waterworks Utility Rates………………………………………………….……………………. 142
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STATE REQUIRED SCHEDULES
Schedule 9 – Schedule of Long-Term Liabilities……………………………….………..……… 145
Schedule 15 – Schedule of State Financial Assistance…………………………………..………….. 146
Schedule 16 – Schedule of Expenditures of Federal Awards……………………………………….. 147
Notes to Schedule of Expenditures of Federal Awards……………………………..…………. ….. 148
Schedule 19 - Labor Relations Consultants………………………………………………………… 150
Schedule 21 – Local Government Risk Assumption………………………………………………. 151
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City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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June 30, 2016
Honorable Mayor, Members of the City Council and Pasco Citizens
City of Pasco, Washington
We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the City of Pasco for
the year ended December 31, 2015. State statute and debt covenants require the City to issue an audited
CAFR annually.
This report consists of management’s representation concerning the finances of the City of Pasco.
Consequently, management assumes full responsibility for the completeness and reliabi lity of the
information in this report. In order to provide a basis for making these representations, management has
established a comprehensive internal control framework designed to protect the government’s assets from
loss, theft or misuse and to compile reliable information for the preparation of the City’s financial
statements in conformity with Generally Accepted Accounting Practices (GAAP). Because the cost of
internal controls should not outweigh the benefits, the City of Pasco’s comprehensive frame work of
internal controls has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material respects.
The City’s financial statements have been audited by the State’s Auditor’s Office (SAO). The goal of the
SAO audit is to provide reasonable third-party assurance that the financial statements of the City for the
fiscal year ended December 31, 2015 are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;
assessing the accounting principles used and significant estimates made by management; and evaluating
the overall financial statement presentation. The independent auditor concluded, based upon the audit,
that there was a reasonable basis for rendering an unqualified opinion that the City’s financial statements
for the fiscal year ended December 31, 2015 are fairly presented in conformity with GAAP. The SAO’s
report is presented as the first component of the financial section of this report .
In addition to the independent financial statem ent audit for the year ended December 31, 2015, the City
underwent a Single Audit. This is mandated for agencies expending federal grant funds in excess of
$500,000 during the year, which the City did. The standards governing Single Audit engagements require
the independent auditor to report not only on the fair presentation of the financial statements but also on
the audited government’s internal controls and compliance with legal requirements with special emphasis
on internal controls and legal requirements involving the administration of federal awards.
GAAP requires that management provide a narrative introduction, overview and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This
letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The
City of Pasco’s MD&A can be found immediately following the report of the independent auditors.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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PROFILE OF THE CITY OF PASCO
The City of Pasco is located in Franklin County, in south-central Washington. This area is also known
as the Mid-Columbia region of the Pacific Northwest. The City encompasses approximately 34 square
miles, serves as the Franklin County seat and is the largest City in the County. Pasc o and the neighboring
cities of Richland, Kennewick and surrounding area which are located in Benton County, make up the
Tri-Cities Metropolitan Area, the fourth largest urban area in Washington State. The 2010 census
population for the City of Pasco was 59,781 and the 2010 Tri-Cities Metropolitan Area population was
approximately 253,340. For 2015, the City’s population was estimated at 69,000. This represents over
a 13% increase in Pasco’s population since 2010.
Initially established in 1884, the City was incorporated in 1891, and has operated under state laws
applicable to a code city with a Council/Manager form of government since May 5, 1964. The City
Manager is appointed by the City Council and is responsible to the City Council for the proper
administration of all City operations. Council members are elected for four year overlapping terms
through citywide elections. The City Council is comprised of seven members, one of which is selected
by the members to serve as Mayor for a two-year term. Council members are part-time elected officials
who exercise legislative authority and determine matters of policy for the City.
The City is a general-purpose government and provides the full range of municipal services authorized
by state law. These services include police and fire protection, ambulance service, parks and recreation
activities, street maintenance and construction, planning and zoning and general administrative services.
The City owns and operates a water/sewer system, a cemetery and a championship golf course. The City
also owns a baseball stadium that is leased to an independent operator.
LOCAL ECONOMY
The City’s economy is largely based on agriculture and related food processing and transportation.
Farmland comprises the majority of the County’s land area. The County has estimated total farm acreage
of 492,000, comprised of 242,000 irrigated acres and 250,000 dry land acres. Portions of the County lie
within one of the world’s largest irrigation districts, the U.S. Bureau of Recl amation’s Columbia Basin
Irrigation Project. In the early 1940’s Congress authorized a plan to provide for irrigation of over 1
million acres in the Columbia Basin region of Washington State. Construction of the Irrigation Project
began in 1946. The Grand Coulee Dam is the only source of both water and hydroelectric power for the
Project.
With the growth in farm production due to the Irrigation Project, food processing has become a major
factor in the area’s economy. The Pasco Processing Center (“Center”), a 240-acre industrial park
designed for the food processing industry, was constructed in 1995. The Center provides food
processors the unique advantage of handling wastewater disposal via the City’s industrial wastewater
system rather than the general sewer system. The Center was developed jointly by the City, Port of
Pasco and Franklin County Public Utility District. This system pumps the wastewater into huge storage
ponds, where it is treated and then used to irrigate crops. These storage ponds a llow processors to
operate year round. Since completion, several large food processors have developed plants which
utilize this facility. J.R. Simplot Food Group (now known as Pasco Processing LLC) opened a $32
million frozen vegetable processing plant at the Center in 1995 employing 250 full time employees
with 500 more during peak seasons. Americold constructed an $8 million freezing facility that employs
100 full time workers. Twin City Foods completed construction on its $20 million frozen corn
processing plant at the Center in 1998 and employs approximately 100 full time workers with 200 more
during peak seasons. Reser’s Fine Foods completed construction of a $15 million fresh potato products
plant in 1998 that employs between 75 and 100 full-time workers.
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Bybee Fresh Foods completed construction of a $12 million processing plant in 2006 and relocated its
Yakima Valley operations. In 2009, Syngenta completed construction of a $42 million seed processing
facility to serve its global markets. The other major food processor in the area, Lamb Weston, operates a
French fry processing plant just north of the City limits employing about 700 workers. In 2013,
Grimmway Farms acquired property for a carrot processing building and a carrot soaker shed, at a cost
in excess of $4 million, in anticipation of employing 30 people working three 8-hour shifts for four
months out of the year. In 2015, Grimmway increased their production by creating two 8-hour shifts (16
hours) Monday through Saturday, from July 1 to December. Grimmway is in the process of completing
a major expansion which will double their plant size. Once the expansion is complete, Grimmway expects
to have 200+ employees. It is estimated that the cost of the expansion will exceed $40 million.
A major catalyst for the growth of the Tri-Cities in the 1970’s was the expansion of the Hanford Nuclear
Reservation, which has evolved into one of the largest nuclear industrial centers in the United States.
Located in Benton County, the Hanford Reservation encompasses approximately 560 square miles and
contains various nuclear and nuclear-related projects, serving as a national energy resource center.
Today, the focus is on energy research, environmental remediation/waste management and related
technology. A 40-year Tri-Party Agreement was signed by the U.S. Department of Energy, the State and
the U.S. Environmental Protection Agency, which established a plan to “cleanup” the environment of the
Hanford Reservation. The overall plan is intended to improve radioactive and chemical waste disposal
and to manage future waste generated at the site.
Congress passed the National Defense Authorization Act of 2015, which authorized the establishment of
the Department of Energy’s most significant Manhattan Project properties within a Manhattan Project
National Park, including Hanford. President Obama signed the National Defense Authorization Act into
law on December 19, 2014. The Defense Act establishes the Manhattan Project National Historical Park
as a unit of the National Park Service no later than one year after enactment.
The Department of Energy’s Pacific Northwest National Laboratory, located in Richland, is only one of
ten such facilities. Its focus is on using science and technology to meet national priorities. It has teamed
with several local economic development partners to develop and market the region’s first technology-
based research area known as the Tri-Cities Research District. Currently, 1,700-acre District’s 70+
tenants employ more than 8,000 people.
A commitment to tourism as a means of economic diversification has been a focus of the public and
private sectors. In 1994, a professional minor league baseball stadium was built. The stadium seats 4,000
and includes a parking lot for 1,000 automobiles. The stadium is currently leased to Northwest Baseball
Ventures I, LLC, owners of the Tri-City Dust Devils and a single A affiliate of the San Diego Padres of
Major League Baseball.
In 1995, the $9.5 million Trade Recreation Agriculture Center (TRAC) was built through a joint venture
between the City of Pasco and Franklin County. TRAC includes a rodeo and livestock arena, exhibition
hall, meeting rooms, a concession area, and administrative offices. Additionally, an adjoining 15-field
soccer complex occupying 45 acres was developed in 1995 and shares the stadium parking lot. The
complex is the state’s second largest and has become a popular location for tournament play. In 2000,
the City completed construction of a $3.5 million six field softball complex in the TRAC area. The City
added lights to the softball fields in 2002. The push for additional tourism continues. A pavilion was
constructed at the TRAC facility that added an ice rink and additional rental space; and in 2001, the City-
owned Sun Willows Golf Course Clubhouse was completely renovated and the irrigation system
completely replaced in 2003.
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Washington State has a robust $4.4 billion wine industry, ranking it only second nationally for premium
wine production. Known as the “Heart of Washington Wine Country,” Tri-Cities region is home to over
160 wineries within a 50-mile radius.
Lourdes Hospital is located in Pasco. Lourdes is the third largest employer in Franklin County, with 791
employees, in 2015.
Pasco is also the home of the region’s only international airport, train and bus depots.
SUMMARY OF CURRENT AND FUTURE ECONOMIC OUTLOOK
The Franklin County-Benton County area has experienced rapid and sustained growth which has
outdistanced the growth rates of both Washington State and the United States. This region’s 10-year and
40-year average growth has remained level at 2.7% per annum. Washington State’s 10-year and 40-year
average growth of 1.3% and 1.8%, respectively, have not kept pace. The United States’ 10-year and 40-
year average growth lags even further behind, with 0.9% and 1.0%, respectively. The trend for this region
appears to remain on track.
In 2015, the Pasco economy was stable and continued to grow. The City issued a total of 2,140 building
permits representing approximately $168 million in construction value. Of the total permits, 243 were
for new single-family residences which equates to $62 million in construction value. The average value
of a new home in Pasco was approximately $257,000, in 2015. This stable economy was reflected in
Standard & Poor’s rating the 2013 utility bond issue as AA-/Stable and the 2015 General Obligation bond
issue as AA-/Stable.
In 2012, the county’s residents approved a three-tenths of one percent sales tax increase devoted to
criminal justice. This revenue source funded a new four-person Street Crimes unit in the City’s Police
Department; paid for the replacement of the City’s Municipal Court building; and funded the construction
of the City’s new Police Community Services Building, which broke ground in the spring of 2015.
In late 2012, the City annexed 608 acres assessed at $121,000,000. Because of timing issues, 2014 was
the first year during which the City received property taxes from the annexation. In the spring of 2015,
the City annexed the Road 80 area. This annexation covers 688 acres assessed at $118,000,000.
In 2014, the Pasco School District completed Franklin STEM (Science, Technology, Engineering, and
Math) Elementary School, at a cost of $9,500,000. This year, construction has been completed on three
schools: Marie Curie STEM Elementary School and McClintock STEM Elementary School, both at a
cost of $20,000,000. Additionally, Delta High School, a STEM school serving Pasco, Kennewick and
Richland, was constructed in Pasco, at a cost of $7,500,000. The heavy investment in school
infrastructure is indicative of the growth Pasco has sustained and looks to continue, as well as the area’s
commitment to providing a well-educated and technologically savvy workforce capable of meeting the
future needs of regional, national, as well as international employers. In 2015, the school district was the
largest employer in Franklin County, with 2,717 employees.
On September 19, 1955, Columbia Basin College held its first classes in the temporary quarters of the
former Pasco Naval Base. From the initial enrollment of 272 students to more than 8,000 students today,
Columbia Basin College continues meet the higher education needs of residents in Benton and Franklin
Counties. In 2015, the college was the second largest employer in Franklin County, with 823 employees.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Pasco for its CAFR for
the fiscal year ended December 31, 2014. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized CAFR. This report must satisfy
both generally accepted accounting principles and applicable legal requirements.
ACKNOWLEDGMENTS
The preparation of this report would not have been possible without the efficient and dedicated service
of the entire Finance Division staff of the Administrative and Community Services Department, as well
as the cooperation and assistance provided by other divisions and departments. We would like to express
our appreciation to all those who assisted and contributed to the preparation of this report.
In closing, we would like to thank the members of the City Council for their leadership and support in
planning and conducting the financial affairs of the City in a responsible and progressive manner.
Respectfully submitted,
David Zabell, City Manager
Rick G. Terway, Director
Administrative & Community Services
Ron Musson
Interim Finance Manager
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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Finance
2015 ORGANIZATIONAL CHART
CITY OF PASCO
CITIZENS
Investigation
s
DEPUTY CITY
MANAGER
CITY COUNCIL
CITY MANAGER COMMUNICATIONS
Field
Operations
Support
Operations
Fire
Suppression
Ambulance
Block Grant
Planning
Engineering
Street
Maintenance
Water, Sewer
Reuse Facility,
Stormwater,
Irrigation Utility
Equipment
Rental &
Replacement
Finance
Recreation
Facilities
City Clerk
Information
Services
HUMAN
RESOURCES
POLICE CHIEF FIRE CHIEF
COMMUNITY &
ECONOMIC
DEVELOPMENT
DIRECTOR
ADMINISTRATIVE
& COMMUNITY
SERVICES
DIRECTOR
PUBLIC WORKS
DIRECTOR
Inspection/
Code
Enforcement
Services
Municipal
Court
Probation
Services
Court
Services
Specialists
MUNICIPAL
COURT JUDGE
Legal
Division
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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Elected Officials Term Expires
Mayor
Matt Watkins 12/31/2019
Council Members
Rebecca M. Francik 12/31/2019
Michael Garrison 12/31/2017
Robert Hoffmann 12/31/2017
Tom Larsen 12/31/2017
Saul Martinez 12/31/2017
Al Yenney 12/31/2019
Administrative Officials
City Manager David Zabell
Deputy City Manager Stanley R. Strebel
Public Works Director Ahmad Qayoumi
Administrative & Community Services Director Richard G. Terway
Community Development Director Rick White
Fire Chief Robert W. Gear
Police Chief Robert W. Metzger
Municipal Court Judge David L. Petersen
Management Team
Human Resources Manager Colleen Chapin
Finance Manager-Interim Ron Musson
Information Services Manager Jesse Rice
Recreation Manager Brent Kubalek
Facilities Manager Dan Dotta
Inspection Services Manager Troy Hendren
Court Administrator Dorothy R. French
PD Captain - ISD Brent Cook
PD Captain - Patrol Jeff Harpster
PD Captain - Admin Ken Roske
City Engineer Dan Ford
PW Division Manager Paul Rhoads
PW Division Manager Derek Wiitala
PW Division Manager John Millan
PW Division Manager Steve Brewer
Directory of City Officials and Managers
As of December 31, 2015
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City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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MANAGEMENTS’ DISCUSSION AND ANALYSIS
As management of the City of Pasco, we offer readers of the financial statements this narrative
overview and analysis of the financial activities of the City of Pasco for the fis cal year ended
December 31, 2015. We encourage readers to consider the information that we have furnished in our
letter of transmittal which can be found starting on page 1 of this report. All amounts, unless
otherwise indicated, are expressed in thousands of dollars.
Financial Highlights
The assets and deferred inflows of the City of Pasco exceeded liabilities and deferred
outflows at the close of the most recent fiscal year by $384,010. Of this amount, $46,099
may be used to meet the government’s ongoing obligations to the citizens and creditors.
The City of Pasco’s total net position improved by $22,738 after beginning net position was
restated (lowered by $6,650; predominately due to the implementation of GASB 68 relating
to changes in pension accounting and reporting). Approximately 20% of the increase in net
position is due to increases in business-type activities and 80% is due to governmental-type
activities. Virtually all of the net increase is due to contributed infrastructure assets of
$23,396. Without the effect of contributed assets, net position shows a slight decrease ($659).
As of the close of the current fiscal year, the City of Pasco’s governmental funds reported
combined ending fund balances of $35,579, an increase of $9,478 in comparison with the
prior year.
At the end of the current fiscal year, the unrestricted, unassigned fund balance for the City’s
General Fund was $11,919 which also represents 31% of total General Fund expenditures.
There was an excess of revenues over expenditures of $3,273; transfers in totaling $138 and
transfers out totaling $4,591. Of the transfers out, $3,494 was for one-time expenditures (to
cover construction project capital spending) and $916 for cash flow and other subsidies to
Special Revenue funds and $181 to internal service funds to subsidize fund balances and
capital purchases.
The City of Pasco had two debt issuances in 2015. One debt issuance was for $8,795,000 to
provide funding for a new police station and to remodel the current space used by the police
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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department after they relocate to the new station. The second was a utility revenue bond to
provide $10,500 for new capital construction projects, refund $4,153 of existing debt and to
provide $1,178 to the utility debt reserve account.
The City of Pasco implemented GASB 68 which changes the way pensions are accounted
for and reported. This also resulted in a change in a variety of prior year balances for assets,
liabilities, deferred outflows, deferred inflows, and net position.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Pasco’s basic
financial statements. Those financial statements comprise three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide Financial statements. The government-wide financial statements are designed
to provide readers with a broad overview of the City of Pasco’s finances in a manner similar to a
private-sector business. The Statement of Net position presents information on all of the City of
Pasco’s assets and liabilities with the difference between the two reported as net position. Over time
increases or decreases in net position may serve as a useful indicator of whether the financial position
of the City of Pasco is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
The government-wide financial statements distinguish functions of the City of Pasco that are
principally supported by taxes and intergovernmental revenues (Governmental Activities) from
activities that are supported by fees and charges (Business-Type Activities). The governmental
activities of the City of Pasco include general government, public safety, utilities and environment,
transportation, economic environment, and culture and recreation. The business-type activities of
the City of Pasco include water/sewer (which cover water, sewer, irrigation, process-reuse and storm
water activities), equipment maintenance and equipment replacement services.
The government-wide financial statements can be found on pages 26-27 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Pasco, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City of Pasco can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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the government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government’s
near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide statements. By doing so,
readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statements of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City of Pasco maintains thirty-one individual governmental funds including the general fund.
Information is presented separately in the governmental fund balance sheet and in the governmental
fund statement of revenues, expenditures and changes in fund balances for the general fund, which
is a major fund as defined by the Governmental Accounting Standards Board. In 2015, the General
Fund and the Construction Fund were the only major governmental funds. Data from the other funds
are combined into a single, aggregate presentation. Individual fund data for each of these non-major
governmental funds is provided in the form of Combining Statements elsewhere in this report.
The City of Pasco adopts an annual appropriated budget for its General Fund. A budgetary
comparison statement has been provided for the General Fund to demonstrate compliance with this
budget.
The basic governmental fund financial statements can be found starting on page 28 of this report.
Proprietary Funds. The City of Pasco maintains two different types of proprietary funds. Enterprise
funds are used to report the same functions presented as business-type activities in the government-
wide financial statements. The City of Pasco uses an enterprise fund to account for the water/sewer
utility. An Internal service fund is an accounting device used to accumulate and allocate costs
internally to the City of Pasco’s various functions. The City of Pasco uses internal service funds to
account for its equipment maintenance and replacement, central stores and medical/dental insurance.
As the central stores, medical/dental insurance and certain equipment maintenance and replacement
services predominately benefit governmental rather than business-type functions, they have been
included with governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The enterprise fund financial statements provide separate information for the
water/sewer fund. Data from the other two internal service funds (equipment maintenance and
equipment replacement of utility equipment) are combined into a single, aggregated presentation in
the basic proprietary fund financial statements starting on page 32.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City of Pasco’s own
programs. The accounting used for the fiduciary funds is much like that used for enterprise funds
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
16
except for agency funds which only show assets and liabilities. The basic fiduciary fund financial
statements can be found starting on page 35 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided
in the government-wide and fund financial statements. The notes to the financial statements can be
found starting on page 37.
Government-wide Overall Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the City of Pasco, assets and deferred inflows exceeded liabilities and deferred
outflows by $384.03 million at the close of the most recent fiscal year. The largest portion of the
City of Pasco’s net position $337.46 million (88%) reflects its investment in capital assets (e.g.
buildings, machinery, equipment, infrastructure, construction in progress) less any related
outstanding debt used to acquire those assets. The city of Pasco uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the
City of Pasco’s investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other resources, since the capital assets
themselves cannot be used to liquidate these liabilities. 5% ($20.40 million) of the City of Pasco’s
net position represents resources that are subject to external restrictions on how they may be used.
The remaining $26.17 million of unrestricted net position (7%) may be used to meet the
government’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Pasco is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate
governmental and business-type activities. The same held true for the prior fiscal year.
2015 2014*2015 2014*2015 2014*
NonCapital assets 53.18$ 41.41$ 26.78$ 20.74$ 79.96$ 62.15
Capital assets 205.53 190.10$ 176.76 169.54$ 382.29 359.64
Total assets 258.71 231.51 203.54 190.28 462.25 421.79
Deferred Outflows 2.81 1.25 0.43 0.22 3.24 1.47
Current liabilities 6.41 4.02 4.95 5.15 11.36 9.17
Noncurrent liabilities 23.38 12.54 43.83 34.33 67.21 46.87
Total liabilities 29.79 16.56 48.78 39.48 78.57 56.04
Deferred Inflows 2.62 5.38 0.27 0.56 2.89 5.94
Net position:
Investment in capital assets 198.28 185.42 139.18 137.10 337.46 322.52
Restricted 20.40 14.36 - 10.84 20.40 25.20
Unrestricted 10.43 11.04 15.74 2.52 26.17 13.56
Total net position 229.11$ 210.82$ 154.92$ 150.46$ 384.03$ 361.28$
* Restated to reflect GASB 68 pension adjustments.
Total Primary Government
City of Pasco's Net Position (in millions)
Governmental Activities Business-Type Activities
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
17
The City’s net position increased by $22.75 million, during the current fiscal year. $23.4 million is
due to infrastructure assets turnover from developers to the city. Without the contributed assets, city
would have experienced a decrease of $0.6 million - the result of expenses exceeding revenues by a
slight amount. While fees for services and tax revenues increased, so did costs. For the business -
type funds, the increase in charges for services – primarily related to utility rate increases – outpaced
increased costs.
Governmental Activities. Governmental activities increased the City of Pasco’s net position by
$18,283 or 80% of the total change in net position. The entire amount of the increase was attributable
to contributed assets totaling $23,929 without which governmental activities would have reduced the
City’s net position by of $5,647. Also, the beginning net position was reduced by $4,355 due to
implementation of GASB 68 pension reporting and $539 for restatement of beginning compensate d
absences obligation.
The City has continued to see increases in taxes. Total tax revenues increased by $1,967 (6%). Sales
taxes continued to grow due to new construction and the continuing improved economic climate. In
2015, there was a $950 (7%) increase in sales taxes over the previous year. At the fund level, property
tax revenues displayed continued growth due to increases in new construction, assessed valuation
2015 2014 2015 2014 2015 2014
Revenues
Program revenues:
Charges for services 20.21$ 19.94$ 20.98$ 20.01$ 41.19$ 39.95$
Operating grants & contributions 1.77 1.70 0.03 0.02 1.80 1.72
Capital grants & contributions 23.93 4.30 6.09 3.35 30.02 7.65
General revenues:
Property taxes 7.26 7.07 7.26 7.07
Other taxes 26.36 24.58 26.36 24.58
Investment income and miscellaneous 1.99 1.64 0.10 0.03 2.09 1.67
Total revenues 81.52 59.23 27.20 23.41 108.72 82.64
Program expenses:
General government 8.24 8.09 8.24 8.09
Public safety 24.93 21.63 24.93 21.63
Transportation 16.37 16.73 16.37 16.73
Economic environment 5.14 4.71 5.14 4.71
Culture and recreation 8.11 7.94 8.11 7.94
Interest on long term debt 0.44 0.21 0.44 0.21
Water 9.10 8.25 9.10 8.25
Sewer 8.17 7.90 8.17 7.90
Process water reuse 2.52 1.85 2.52 1.85
Storm water 1.17 1.29 1.17 1.29
Irrigation 1.78 1.55 1.78 1.55
Total expenses 63.23 59.31 22.74 20.84 85.97 80.15
Changes in net position 18.29 (0.08) 4.46 2.57 22.75 2.49
Transfers - (0.15) - 0.15 - -
Total changes in net position 18.29$ (0.23)$ 4.46$ 2.72$ 22.75$ 2.49$
Governmental Activities
City of Pasco's Change in Net Position (in millions)
Business-Type Activities Total Primary Government
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
18
and the effect of the 2012 annexation. Although construction continued at the slower pace,
permitting fees increased by $88 (9%). In 2015 the city added 18 positions: 7 in the Fire Department,
1 in the Police Department, 9 in the Public Works Department and 1 in the Administrative &
Community Services Department.
GOVERNMENTAL ACTIVITES – REVENUES BY SOURCE
GOVERNMENTAL ACTIVITIES – EXPENSES AND PROGRAM REVENUES
Charges for
services
25%
Operating
grants &
contributions
2%
Capital
grants &
contributions
29%
Property
taxes
9%
Other taxes
32%
Investment
income and
miscellaneous
3%
Sources of Revenues 2015
Charges for
services
34%
Operating
grants &
contributions
3%
Capital grants
&
contributions
7%
Property taxes
12%
Other taxes
41%
Investment
income and
miscellaneous
3%
Sources of Revenues 2014
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
19
Business-Type Activities. 20% of the increase in the City of Pasco’s net position is related to
business-type activities. The total increase in net position for business-type activities was $4,455,
which included a net reduction in beginning balance due to the implementation of GASB 68 pension
reporting. Additionally, charges for services increased by $2,044 (11%). Effective, January 1, 2015,
water consumption rates increased by 3% and effective April 1, 2015 Stormwater rates increased by
approximately 11% (from $4.40 to $4.90 for residential).
UTILITY ACTIVITIES – EXPENSES AND PROGRAM REVENUES COMPARISON
-
5.00
10.00
15.00
20.00
25.00
MI
L
L
I
O
N
S
2015 Expense 2015 Revenue 2014 Expense 2014 Revenue
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
20
Financial Analysis of the City’s Funds.
As noted earlier, the City of Pasco uses fund accounting to ensure and demonstrate compliance with
finance related legal requirements.
Governmental Funds. The focus of the City of Pasco’s governmental funds is to provide information
on near-term inflows, outflows and balances of spendable resources. Such information is useful in
assessing the City of Pasco financing requirements. In particular, unreserved fund balance may serve
as a useful measure of a government’s net resources available for spending at the end of the fiscal
year.
As of the end of the 2015, the City of Pasco governmental funds reported combined ending fund
balances of $35,579 which is an increase of $9,478 from the prior year. Approximately 68% of this
total amount, $11,519 constitutes unassigned fund balance which is available for spending at the
government’s discretion.
The General Fund is the chief operating fund of the City of Pasco. At the end of 2015, unassigned
fund balance of the general fund was $11,919. As a measure of the general fund’s liquidity, it may
be useful to compare unrestricted, unassigned fund balance to total expenditures. This represents
31% of total expenditures.
The fund balance of the City of Pasco’s General Fund increased by $7,923 during 2015, which is
19% of current year revenues. Overall revenues increased by $2,029 (5%) and total expenditures
-
2.00
4.00
6.00
8.00
10.00
12.00
Water Sewer Process Water
Reuse
Stormwater Irrigation
MI
L
L
I
O
N
S
2015 Expense 2015 Revenue 2014 Expense 2014 Revenue
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
21
increased by $3,177 (9%). General fund tax revenues increased by $1,664 (6%). Property taxes
increased approximately (3%) due to new construction and steady valuations, and sales taxes
increased by $951 (7%) with the continued steady economic recovery. Electric B&O taxes
increased by $537 (15%), due to an increase in electric rates and continued growth in residential and
industrial customers. Water B&O taxes increased by $24 (4%) due to continued growth and the 3%
rate increase on water consumption, which went into effect January 1, 2015. The Telephone tax
continues its historical decline trend $127 (8%), as customers continue moving towards the use of
internet and cell services, which are not subject to the telephone tax. Inter-governmental revenues
from state liquor taxes increased by $182 (9%) as the state is starting to incrementally share more of
these taxes with local governments. However, these levels fall far short the amounts received in
2011 and earlier.
The City was able to increase the number of approved personnel positions, by adding twenty one
positions. Contracts with Police and Fire were settled in 2015. Retroactive for firefighter pay was
$81 for the General Fund and $41 for the Ambulance fund plus $61 to the general fund for police
officer pay. The General Fund revenues of $41,345 exceeded expenditures of $38,072 before
transfers in/out.
Proprietary Funds. The City of Pasco enterprise funds provide the same type of information found
in the government-wide financial statements, but in more detail and separately states the activity of
the Water/Sewer Utility from the internal service funds. Unrestricted net position of the utility fund
at the end of 2015 was $12,960. The working capital ratio is the current assets less current liabilities
and is a measure of liquidity for the utility to meet its short term payment obligations. At the end of
2015 the utility is well-positioned as it has current assets of $23,981 available to meet its current
liability obligations of $1,513, resulting in a working capital ratio of 15.8. The utility showed a loss
before contributions and transfers of $2,133. This was more than offset by $6,090 in capital
contributions. The City continues to invest in new infrastructure due to the growth of its population,
as well as due to the need to address aging infrastructure issues. The City has a meter and service
replacement program with the goal of replacing its meters on an average of once every ten years.
Local improvement districts (LIDs) are used by the utility to supplement the rate payers’ participation
in capital construction.
General Fund Budgetary Highlights
The legal level of appropriation is at the fund level. The budget by function is shown to provide more
detailed information. There were increases to the original budget of $2,361 and $167 in the
expenditure and transfer out appropriations, respectively. $1,977 of the increase was for the Public
Safety function. The appropriation increases were due to a number of factors. $243 in expenditure
appropriation increases were due to retroactive pay for contract settlements with the police and fire
unions and were part of an overall increase of $734 in wages and benefit budgets. Also there was a
total increase in budget authority of $1,264 for interfund transfers (including transfers for
construction of the new police facility) and $1,255,396 increase for various services. Actual spending
was in between (more than the original appropriation and less than the final appropriation).
Actual revenues were 109% of the original revenue budget and 113% of the final revenue budget.
Revenues are generally estimated low in order to protect the city from unanticipated funding
fluctuations. Actual total revenues exceeded actual total expenditures in by $3,273.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
22
Capital Asset and Debt Administration
Capital Assets. The City of Pasco’s investment in capital assets for its governmental and business-
type activities as of December 31, 2015 amounts to $376,537 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, improvements machinery and equipment,
park facilities, roads, water and sewer treatment plants, etc. The total change in the City of Pasco’s
capital assets (net of depreciation) for the current year was an increase of $16,499 for governmental
activities and an increase of $1,402 for business-type activities. $23,396 and $4,440 in noncash
capital contributions were made to governmental and business-type activities, respectively, in 2015.
Major capital asset activity during the current fiscal year included the following:
Capital spending in governmental funds for 2015 was $6,114: $166 for general governmental
purposes, $3274 for public safety purposes, $2,203 for transportation purposes and $471 for
culture and recreation purposes. The two largest projects for 2015 was $3,184 spending for
the Police Station (total project budget of $6,747) and $1,239 for Power Line Road
improvements (total project budget of $1,397).
Construction spending in the utility fund (major component of business-activities) for 2015
was $2,990. Construction spending was $1,291 for water, $1,109 for sewer, $562 for the
PWRF and very small amounts for stormwater and irrigation. The largest water project was
to finish the Butterfield Water Treatment Plan Intake Screens which spent $1,015 in 2015
(total project budget was $1,479). The largest sewer projects was for the Wastewater
Treatment Plant Primary Clarifier #3 which spent $738 in 2015 (total project budget of
$2,622). The largest project for the PWRF was for the Aeration Pond which spent $375 i n
2015 (total project budget of $1,648).
Additional information on the City of Pasco’s capital assets can be found in note 3.C. starting on
page 52 of this report.
2015 2014 2015 2014 2015 2014
Land 14.36$ 14.67$ 2.53$ 2.52$ 16.89$ 17.19$
Construction in process 13.21 12.67 3.94 5.74 17.15 18.41
Buildings and structures 25.46 22.30 36.84 35.96 62.30 58.26
Other improvements 3.05 3.48 - - 3.05 3.48
Machinery and equipment 6.52 5.88 7.64 8.30 14.16 14.18
Infrastructure 142.92 130.02 120.06 117.09 262.98 247.11
Total capital assets 205.52$ 189.02$ 171.01$ 169.61$ 376.53$ 358.63$
City of Pasco's Capital Assets at Year-End (in millions)
(Net of Depreciation)
Governmental Activities Total Primary GovernmentBusiness-Type Activities
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
23
Long-term Debt. At the end of 2015, the City of Pasco had total outstanding debt of $57.36 million.
Of this amount $11.89 million comprised debt backed by the full faith and credit of the government.
$45.31 million of the City of Pasco bonded debt represents bonds secured primarily by specified
revenue resources (e.g. revenue bonds). The city also has $0.16 million in special assessment bonds.
Additional information on the City of Pasco’s long term liabilities can be found in note 3.F. starting
on page 55 of this report.
Economic Factors and Next Year’s Budgets and Rates (amounts not in thousands)
In 2015, the Pasco economy was stable and continued to grow. The city issued a total of 2,140
building permits representing approximately $168 million in construction value. Of the total permits,
243 were for new single-family residences which equates to $62 million in construction value. The
average value of a new home in Pasco was approximately $257,000, in 2015. This stable economy
was reflected in Standard & Poor’s rating the 2013 utility bond issue as AA -/Stable and the 2015
General Obligation bond issue as AA-/Stable.
In 2012, the county’s residents approved a new three-tenths of one percent sales tax increase devoted
to criminal justice. This new revenue source funded a new four-person Street Crimes unit in the city’s
police department; paid for the replacement of the city’s Municipal Court building; and funded the
construction of the city’s new Police Community Services Building, which broke ground in the
spring of 2015.
In late in 2012, the city annexed a part of Franklin County. 2014 was the first year the city re ceived
the additional property taxes from the annexation. The annexed area was in a part of the county
already surrounded by the city. In the spring of 2015, the city annexed the Road 80 area. This
annexation covers 688 acres and represents an addition of property assessed at $118,000,000.
The only fund larger than the General Fund is the Water/Sewer Utility Fund. The Water/Sewer Utility
Fund has grown rapidly over the past few years as it provides services to the thousands of new homes
built over the past decade. Every year the utility updates its six year rate plan. Annual rate increases
are scheduled. 2016’s rate increases are around 6% for base fees as well as 5% for water
consumption; sewer’s rate increase is around 10%; the ambulance rate increase is 63% (from $7.75
to $12.65 per month); and stormwater’s rate increase is scheduled for 11%.
2015 2014 2015 2014 2015 2014
General Obligation Bonds 11.89$ 3.32$ 11.89$ 3.32$
Special Assessement Bonds 0.16 0.16 0.16 0.16
Loans & Notes 0.08 0.13 6.94 8.66 7.02 8.79
Revenue Bonds 38.29 28.03 38.29 28.03
12.13$ 3.61$ 45.23$ 36.69$ 57.36$ 40.30$
City of Pasco's Bonds and Notes
(in millions)
Governmental Activities Total Primary GovernmentBusiness-Type Activities
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
24
Requests for Information
This financial report is designed to provide a general overview of the City of Pasco’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Finance Manager, PO Box 293, Pasco, WA 99301.
This page is intentionally blank.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
25
BASIC FINANCIAL STATEMENTS
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
26
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
27
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash & cash equivalents 23,224,309$ 6,130,532$ 29,354,841$
Restricted cash:
Program, grant, donations 846,689 846,689
Customer deposits 593,189 372,727 965,916
Unspent bond proceeds 4,876,062 13,386,417 18,262,479
Debt covenants 765,848 1,911,591 2,677,439
Investments 8,673,869 3,851,262 12,525,131
Receivables (net of allowances):
Taxes 4,525,979 4,525,979
Customers 1,763,671 918,221 2,681,892
Grants 515,126 - 515,126
Due from Fiduciary Funds 24,680 24,680
Due from other governments 100,000 100,000
Inventories - 196,767 196,767
Total current assets 45,909,422 26,767,517 72,676,939
Noncurrent assets:
Restricted cash 455,173 3,888,654 4,343,827
Restricted investments - Debt/IBNR/LID 1,089,463 1,636,761 2,726,224
Special assessments 706,965 224,395 931,360
Net Pension Asset 4,984,645 4,984,645
Joint Ventures 47,959 47,959
Capital assets not being depreciated:
Land 14,363,583 2,532,743 16,896,326
Construction work in progress 13,212,182 3,937,728 17,149,910
Capital assets net of accumulated depreciation:
Buildings and structures 25,463,153 36,838,047 62,301,200
Other improvements 3,052,003 3,052,003
Machinery and equipment 6,518,847 7,637,122 14,155,969
Infrastructure 142,917,795 120,064,064 262,981,859
Total noncurrent assets 212,811,768 176,759,514 389,571,282
Total assets 258,721,190 203,527,031 462,248,221
DEFERRED OUTFLOWS OF RESOURCES
Pension related 2,805,491 428,493 3,233,984
LIABILITIES
Current liabilities:
Accounts payable 2,445,132 906,427 3,351,559
IBNR payable from restricted assets 1,156,914 1,156,914
Deposits payable from restricted assets 593,189 372,727 965,916
Accrued interest payable from restricted assets - 244,824 244,824
Compensated absences - current 1,309,037 105,790 1,414,827
Loans due to other governments - current 44,418 1,620,576 1,664,994
Bonds - current 865,387 1,698,821 2,564,208
Total current liabilities 6,414,077 4,949,165 11,363,242
Noncurrent liabilities:
Compensated absences 797,311 105,790 903,101
Net OPEB obligation 3,331,084 3,331,084
Notes payable 33,961 5,324,047 5,358,008
Bonds payable (net of premium)11,182,347 36,586,708 47,769,055
Net pension obligation 8,039,698 1,812,873 9,852,571
Total noncurrent liabilities 23,384,401 43,829,418 67,213,819
Total liabilities 29,798,478 48,778,583 78,577,061
DEFERRED INFLOWS OF RESOURCES - -
Pension related 2,620,435 274,929 2,895,364
NET POSITION
Net investment in capital assets 198,277,512 139,165,969 337,443,481
Restricted for:
Cemetery (nonexpendable)467,698 467,698
Program, grant, donations 86,303 86,303
Streets and boulevards 6,203,814 6,203,814
Litter and housing abatement 354,419 354,419
Park development 2,134,710 2,134,710
Capital improvement 4,802,103 4,802,103
Economic development 107,573 107,573
Debt repayment/guarantee 6,240,106 6,240,106
Unrestricted 10,433,530 15,736,043 26,169,573
Total Net Position 229,107,768$ 154,902,012$ 384,009,780$
185,056 338,620
The notes to the financial statements are an integral part of this statement.
STATEMENT OF NET POSISTION
December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
28
Charges for Operating Capital
Services, Fines &Grants and Grants and Governmental Business-Type
Functional Programs Expenses Licenses Contributions Contributions Activities Activities Total
Primary Government:
Governmental activities:
General government 8,238,384$ 5,283,224$ 10,436$ -$ (2,944,724)$ -$ (2,944,724)$
Public safety 24,916,911 5,176,653 630,575 - (19,109,683) - (19,109,683)
Transportation 16,373,738 3,671,964 512 23,929,191 11,227,929 - 11,227,929
Natural & economic environment 5,137,459 3,569,730 1,112,722 - (455,007) - (455,007)
Culture and recreation 8,114,913 2,502,222 15,817 - (5,596,874) - (5,596,874)
Interest on long term debt 444,435 (444,435) - (444,435)
Total governmental activities 63,225,939 20,203,793 1,770,062 23,929,191 (17,322,893) - (17,322,893)
Business-type activities:
Water 9,099,085 9,059,643 - 2,605,481 2,566,039 2,566,039
Sewer 8,174,497 6,942,520 - 2,392,401 1,160,424 1,160,424
Process Water Reuse 2,524,179 2,244,414 - - (279,765) (279,765)
Storm Water 1,168,440 1,428,874 27,182 430,193 717,809 717,809
Irrigation 1,778,656 1,303,460 - 662,312 187,116 187,116
Total business-type activities 22,744,857 20,978,911 27,182 6,090,387 - 4,351,623 4,351,623
Total primary government 85,970,796$ 41,182,704$ 1,797,244$ 30,019,578$ (17,322,893) 4,351,623 (12,971,270)
General Revenues:
Taxes:
Property taxes E1 7,255,010 7,255,010
Sales taxes E1 13,645,706 13,645,706
B&O taxes E1 10,268,542 10,268,542
Excise taxes E1 2,443,535 2,443,535
Intergovermental G1 1,740,857 1,740,857
Investment income and miscellaneous F1 251,887 103,339 355,226
Total general revenues and transfers 35,605,537 103,339 35,708,876
Change in net position 18,282,644 4,454,962 22,737,606
Net position - beginning (Adjusted -210,825,124 150,447,050 361,272,174
See Note 11)
Net position - ending 229,107,768$ 154,902,012$ 384,009,780$
The notes to the financial statements are an integral part of this statement.
Program Revenues
Statement of Activities
For the Year Ended December 31, 2015
Net Revenue (Expenses) and Changes in Net Position
Primary Government
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
29
Other
General Construction Governmental Total
ASSETS
Cash & cash equivalents 4,440,230$ 1,081,105$ 14,755,722$ 20,277,057$
Restricted cash
Program, grant, donation 86,303 - 86,303
Customer deposits 549,920 43,269 593,189
Cemetery endowement 455,173 455,173
Unspent bond proceeds 4,876,062 4,876,062
Debt service 765,848 765,848
Investments 4,309,737 1,966,274 6,276,011
Restricted investments 692,935 692,935
Receivables (net of allowances):
Taxes 4,018,099 507,880 4,525,979
Customers 1,267,905 495,766 1,763,671
Interfund loans - 739,825 739,825
Grants 55,894 161,320 297,912 515,126
Special assessments & loans 706,965 706,965
Due from other funds 415,460 415,460
Due from other governments 100,000 100,000
Total assets 20,019,610 1,242,425 21,527,569 42,789,604
LIABILITIES
Accounts payable 914,045 1,003,992 503,732 2,421,769
Interfund loans payable 1,776,936 1,776,936
Due to other funds 390,780 390,780
Deposits payable from restricted assets 549,920 43,269 593,189
Total liabilities 1,463,965 1,003,992 2,714,717 5,182,674
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,266,530 761,853 2,028,383
FUND BALANCES (DEFICITS)
Nonspendable
Cemetery permanent fund 467,698 467,698
Restricted
Program, grant, donation 86,303 86,303
Street and boulevard 6,203,814 6,203,814
Litter & housing abatement 354,419 354,419
Park development 2,134,710 2,134,710
Capital improvements 4,802,103 4,802,103
Economic development 107,573 107,573
Debt repayment/guarantee 4,876,061 1,364,045 6,240,106
Committed
Landfill claims 407,344 407,344
Special revenue funds 3,016,889 3,016,889
Construction projects 238,433 238,433
Unassigned 11,919,407 (400,252) 11,519,155
Total fund balances 17,289,115 238,433 18,050,999 35,578,547
Total liabilities, deferred inflows of resources
and fund balances 20,019,610$ 1,242,425$ 21,527,569$
Amounts reported for governmental activities in the statements of net position
are different because:
Long-term assets used in governmental activities are not financial resources and
therefore are not reported in the government funds.206,992,163
Deferred pension outflows are not available to pay for current period expenditures and
therefore are not reported in the governmental funds.2,770,560
Long-term liabilities are not due and payable in the current period and therefore
are not reported in the funds. Proceeds from new debt and repayments of exisiting
debts are recorded as resources and expenditures for fund reporting but are additions
and reductions of liabilities for government wide reporting.(24,589,739)
Deferred inflows and proceeds from asset sales in governmental funds is susceptible to full
accrual therefore are not reported in the Statement of Net Activities. Other expenses are
susceptible to full accrual and are reported in the Statement of Net Activities but not
in the governmental funds.(2,131,424)
Internal Service funds are used by management to charge the costs of certain
activities to individual funds. The assets and liabilities of some internal service funds
are included in the governmental activities in the statement of net position. Interfund loans
between governmental activities are excluded.10,487,661
Net position of governmental activities ( see page 26)229,107,768$
The notes to the financial statements are an integral part of this statement.
Balance Sheet
Governmental Funds
December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
30
General Other
Fund Construction Governmental Total
REVENUES
Taxes 30,188,368$ -$ 3,398,211$ 33,586,579$
Licenses and permits 1,701,769 1,687,312 3,389,081
Intergovernmental revenue 2,143,188 413,157 3,300,739 5,857,084
Charges for services 5,795,848 5,802,570 11,598,418
Fines and forfeitures 1,030,170 178,563 1,208,733
Miscellaneous revenue 485,184 - 1,779,370 2,264,554
Total revenues 41,344,527 413,157 16,146,765 57,904,449
EXPENDITURES
Current:
General government 7,851,369 88,837 - 7,940,206
Public safety 21,274,372 46,466 3,947,482 25,268,320
Transportation 1,607,128 76 3,665,518 5,272,722
Natural & economic environment 1,781,977 - 3,207,342 4,989,319
Culture and recreation 4,659,142 - 2,697,716 7,356,858
Capital outlay:
General government 80,899 85,049 - 165,948
Public safety 7,521 3,213,502 52,853 3,273,876
Transportation 2,194,187 9,132 2,203,319
Culture and recreation - 471,295 - 471,295
Debt service:
Principal 473,210 108,019 581,229
Interest 336,127 108,308 444,435
Total expenditures 38,071,745 6,099,412 13,796,370 57,967,527
Excess of revenues over (under) expenditures 3,272,782 (5,686,255) 2,350,395 (63,078)
OTHER FINANCING SOURCES (USES)
Sale of assets 700,058 700,058
Debt proceeds - Bonds payable 8,795,000 8,795,000
Debt proceeds - Premium 307,734 307,734
Transfers in 138,000 5,891,327 1,323,049 7,352,376
Transfers out (4,591,012) (3,022,644) (7,613,656)
Total other financing sources (uses)4,649,722 5,891,327 (999,537) 9,541,512
Net change in fund balances 7,922,504 205,072 1,350,858 9,478,434
Fund balances - beginning (Adjusted-9,366,611 33,361 16,700,141 26,100,113
See Note 11)
Fund balances - ending 17,289,115$ 238,433$ 18,050,999$ 35,578,547$
The notes to the financial statements are an integral part of this statement.
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
31
Net change in fund balances - total governmental funds 9,478,434$
Amounts reported for governmental activities in the Statement of Activities are
different because of the following reconciling items:
Governmental funds report capital outlays as expenditures. However, in the statement
of net position they are reported net of depreciation as a capital asset. Capital assets contributed
by private developers do not provide current resources and are not reported as revenues in the funds.16,681,656
The issuance of long-term debt (e.g. bonds, notes) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes current
financial resources of governmental funds. Neither transaction, however, has any affect on net
assets. (8,521,505)
Revenues reported in the statement of activies that do not provide current financial resources
are not reported as revenues in the funds.(492,334)
Some expenses such as for compensated absences, pension expense, gain on disposal of assets, etc.
are reported in the Statement of Net Activities do not the use of current financial resources and, therefore, 224,620
are not reported as expenditures in the governmental funds.
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of certain activity is reported with governmental
activities. Interfund transfers between govermental funds are eliminated in the Statement of Net Activities.911,773
Change in net position of governmental activities (see page 27)18,282,644$
The notes to the financial statements are an integral part of this statement.
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance of Governmental Funds to the Statement of Activities
For the Year Ended December 31, 2015
(Continued from prior page)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
32
Original Final Variance to
Budget Budget Actual Final Budget
REVENUES
Taxes 26,395,272$ 26,945,272$ 30,188,368$ 3,243,096$
Licenses and permits 1,304,500 1,589,800 1,701,769 111,969
Intergovernmental revenue 1,566,170 1,954,770 2,143,188 188,418
Charges for services 6,008,521 5,879,209 5,795,848 (83,361)
Fines and forfeitures 1,022,650 1,022,650 1,030,170 7,520
Miscellaneous revenue 437,465 467,465 485,184 17,719
Total revenues 36,734,578 37,859,166 41,344,527 3,485,361
EXPENDITURES
Current:
General government 8,289,871 8,838,193 7,851,369 (986,824)
Public safety 19,599,303 21,576,666 21,274,372 (302,294)
Transportation 1,811,064 1,813,264 1,607,128 (206,136)
Natural & economic environment 1,815,701 1,855,252 1,781,977 (73,275)
Culture and recreation 4,618,779 4,729,407 4,659,142 (70,265)
Capital outlay:
General government 375,250 51,200 80,899 29,699
Public safety 137,300 144,821 7,521 (137,300)
Debt service:
Principal 467,316 467,316 473,210 5,894
Interest 107,714 107,714 336,127 228,413
Total expenditures 37,222,298 39,583,833 38,071,745 (1,512,088)
Excess of revenues over (under) expenditures (487,720) (1,724,667) 3,272,782 1,973,273
OTHER FINANCING SOURCES (USES)
Debt proceeds and other miscellaneous 8,333,423 9,682,055 8,795,000 (887,055)
Debt proceeds - bond premium 307,734 307,734
Interfund loans repaid 239,118 239,118 239,118 -
Transfers in 138,000 138,000 138,000 -
Interfund loans issued (239,118) (239,118)
Transfers out (8,790,266) (10,054,450) (4,591,012) 5,463,438
Total other financing uses (79,725) 4,723 4,649,722 4,644,999
Net change in fund balances (567,445) (1,719,944) 7,922,504 6,618,272
Fund balances - beginning (Adjusted See Note 11)6,501,765 9,383,161 9,366,611 (16,550)
Fund balances - ending 5,934,320$ 7,663,217$ 17,289,115$ 6,601,722$
The notes to the financial statements are an integral part of this statement.
Statement of Revenues, Expenditures, and Changes in Fund Balances-Budget to Actual
General Fund
For the Year Ended December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
33
Water/Sewer Internal
Utility Service
ASSETS
Current assets:
Cash and cash equivalents 3,838,859$ 5,238,925$
Restricted cash equivalents:
Claims incuured but not reported (IBNR)760,386
Customer deposits 372,727
Unspent bond proceeds 13,386,417
Revenue bond covenants 1,911,591
Investments 3,356,308 2,892,812
Receivables (net of allowances):
Customers 918,221 -
Inventory 196,767 -
Total current assets 23,980,890 8,892,123
Noncurrent assets:
Restricted cash - bond reserve 3,888,654 -
Restricted investments- bond covenants & IBNR 1,636,761 396,528
Special assessments 224,395 -
Interfund loan 1,037,110
Capital assets not being depreciated:
Land 2,532,743 -
Construction work in progress 3,937,728 -
Capital assets net of accumulated depreciation:
Buildings and structures 36,838,047 -
Machinery and equipment 6,010,451 5,890,745
Infrastructure 120,064,064 -
Total noncurrent assets 175,132,843 7,324,383
Total assets 199,113,733 16,216,506
DEFERRED OUTFLOWS
Pension related 428,493 34,931
LIABILITIES
Current liabilities:
Accounts payable 895,550 34,240
IBNR payable from restricted assests 1,156,914
Other liabilities
Customer deposits payable from restricted assets 372,727
Accrued interest payable from restricted assets 244,824
Compensated absences - current portion 105,790 -
Loans due to other governments - current portion 1,620,576
Revenue bonds - current portion 1,698,821
Total current liabilities 4,938,288 1,191,154
Noncurrent liabilities:
Compensated absences 105,790 -
Loans due to other governments 5,324,047 -
Current Portion Loan PayableRevenue bonds payable (net of premium)36,586,708 -
Net pension obligation 1,812,873 147,789
Total noncurrent liabilities 43,829,418 147,789
Total liabilities 48,767,706 1,338,943
DEFERRED INFLOWS
Pension related 274,929 22,412
NET POSITION
Net investment in capital assets 137,539,298 5,890,745
Unrestricted 12,960,293 8,999,337
Total net position 150,499,591$ 14,890,082$
4,402,421
Net position of business-type activities (see page 26)154,902,012$
The notes are an integral part of this statement.
Statement of Net Position
Proprietary Funds
December 31, 2015
Adjustment for the net effect of the current year
activity between the internal service funds and the
enterprise fund
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
34
Water/Sewer Internal
Utility Service
OPERATING REVENUES
Permits 52,163$
Charges for services 20,877,438 5,842,487$
Miscellaneous 49,310 3,415,982
Total operating revenues 20,978,911 9,258,469
OPERATING EXPENSES
Depreciation 6,455,603 852,317
Salaries and wages 3,016,535 337,189
Personnel benefits 1,284,959 144,047
Supplies 1,730,410 731,402
Services 9,169,745 6,144,862
Total operating expenses 21,657,252 8,209,817
OPERATING INCOME (678,341) 1,048,652
NONOPERATING REVENUES (EXPENSES)
Investment income 52,534 88,776
Investment loss (3,777)
Rents and leases 50,805 -
Grant 27,182 -
Gain on sale of capital assets - 14,915
Interest expense (1,585,679) -
Total nonoperating revenues (expenses)(1,455,158) 99,914
Income (loss) before contributions
and transfers (2,133,499) 1,148,566
Capital contributions 6,090,387 -
Transfers in - 319,280
Transfers out - (58,000)
Changes in net position 3,956,888 1,409,846
Prior period adjustments - -
Net position - beginning (Adjusted-See Note 11)146,542,703 13,480,236
Net position - ending 150,499,591 14,890,082
Changes in net position 3,956,888
Adjustment for the net effect the current year
activity between the internal service funds and the
enterprise fund 498,074
Change in net position of business-type activities
(page 27)4,454,962$
The notes to the financial statements are an integral part of this statement.
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Fiscal Year Ended 12/31/2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
35
Water/Sewer Internal
Utility Service
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers 20,944,816$ 9,258,469$
Payments to employees (4,419,572) (482,653)
Payments to suppliers (10,397,730) (6,189,956)
Net cash provided by operating activities 6,127,514 2,585,860
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:-
Noncapital grants 27,182 -
Rents and leases
Net cash provided from noncapital financial activities 27,182 -
CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from sale of assets - 10,629
Acquisition of capital assets (3,373,633) (1,370,612)
Principal paid to refinance existing debt (4,080,000)
Principal paid on existing debt (3,359,488) -
Interest paid on debt (1,615,954) -
Bond proceeds received 16,003,286 -
Payments received from notes and loans - -
Transfers in (out) for capital - 261,280
Capital charges 1,647,641
Capital grant and contribution proceeds 84,696 -
Net cash used by capital and related financing activities 5,306,548 (1,098,703)
CASH FLOWS FROM INVESTING ACTIVITIES
Investments sold and earnings 52,534 598,098
Investments purchased (3,006,908) (1,300,571)
Net cash provided from investing activities (2,954,374) (702,473)
Net increase in cash 8,506,870 784,684
Beginning cash 14,891,377 5,214,627
Ending cash 23,398,247$ 5,999,311$
RECONCILATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net Operating Income (678,341)$ 1,048,652$
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
Depreciation 6,455,603 852,317
Changes in assets and liabilities
Decrease in customer receivables 40,347 -
Decrease in inventories 97,034 -
Increase in accounts payable 405,391 686,308
Decrease in accounts customer deposits payable (74,442)
Decrease in compensated absences (100,695)
(Increase) decrease in pension deferred outflow (209,923) (17,113)
Increase (decrease) in pension obligation 482,055 39,298
Increase (decrease) in pension deferred inflow (289,515) (23,602)
Net cash provide by operating activities 6,127,514$ 2,585,860$
NON CASH ACTIVITIES
Capital contributions 4,439,992$ -
Total noncash activities 4,439,992$ -$
The notes to the financial statements are an integral part of this statement.
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended 12/31/2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
36
Pension and Other
Post-Employment
Benefits Agency
ASSETS
Cash & cash equivalents 145,247$ 370,550$
Investments
LID Note 40,301
Federal Agency 53,571
Mutual Funds 4,564,624
Total assets 4,803,743 370,550
LIABILITIES
Due to others 24,680 370,550
Net Pension Obligation 1,185,733
Total liabilities 1,210,413 370,550$
NET POSITION
Held in trust for pension benefits/other
post employment benefits 3,593,330$
The notes to the financial statements are an integral part of this statement.
Statement of Net Position
Fiduciary Funds
December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
37
Pension and Other
Post-Employment
Benefits
ADDITIONS
Taxes 54,506$
Investment earnings
Interest 5,093
Dividends 326,120
Net decrease in market value of investments (355,156)
Total Additions 30,563
DEDUCTIONS
Pension benefits 82,477
Medical premiums 105,048
Administrative expenses 6,372
Total deductions 193,897
Change in net position (163,334)
Net position - beginning (adjusted - see note 11)3,756,664
Net position - ending 3,593,330$
The notes to the financial statements are an integral part of this statement.
Statement of Changes in Net Position
Fiduciary Funds
For the year ended December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
38
NOTES TO THE FINANCIAL STATEMENTS
Note 1 - Summary of Significant Accounting Policies
The financial statements of the City of Pasco have been prepared in conformity with generally
accepted accounting principles (GAAP) as applied to governmental units. The Governmental
Accounting Standards Board (GASB) is the accepted standard setting body for establishing
governmental accounting and financial reporting principles. The significant accounting policies are
described below.
A. Reporting Entity
The City of Pasco was incorporated on May 4, 1891 and operates under the laws of the state
of Washington applicable to a Non-Charter Code City with a Council/Manager form of
government. As required by the generally accepted accounting principles the financial
statements present City of Pasco, as a primary government unit. The City of Pasco does
not have any component units.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the nonfiduciary activities of the primary
government. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Our policy is to allocate indirect
costs to a specific function or segment. Program revenues include 1) charges to customers
or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and 2) grants and contributions that are restricted
to meeting the operational or capital requirements or a particular function or segment.
Taxes and other items not properly included among program revenues are reported instead
as general revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
39
recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and
similar items are recognized as revenue as soon as all eligibility requirements imposed by
the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized
as soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the government considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
General capital asset acquisitions are reported as expenditures in governmental funds.
Issuance of long-term debt and acquisitions under capital leases are reported as other
financing sources.
Property taxes, sales taxes, franchises taxes, licenses, and interest associated with the
current period are all considered to be susceptible to accrual and so have been recognized
as revenues of the current fiscal period. Entitlements are recorded as revenues when all
eligibility requirements have been met, including any time requirements, and the amount is
received during the period or within the availability period for this revenue source (within
60 days of year-end). Only the portion of special assessment receivable due within the
current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when
cash is received by the government.
Proprietary, pension, and other postemployment benefit trust, and private-purpose trust
funds are reported using the economic resources measurement focus and the accrual basis
of accounting. Agency funds have no measurement focus but utilize the accrual basis of
accounting for reporting its assets and liabilities.
The City of Pasco reports the following major governmental funds:
The General Fund: The General (or current expense) Fund is the City of Pasco’s
primary operating fund. It accounts for all financial resources of the general
government, except those required or elected to be accounted for in separate fund.
The Construction Fund: the Construction Fund is a capital project fund used to
account for significant construction and capital acquisition related to governmental
activities.
The City of Pasco reports the following major proprietary fund:
The Water/Sewer Fund: the Water/Sewer Fund accounts for water, sewer, water
reuse, storm water and irrigation utility activities.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
40
Additionally, the City of Pasco reports the following fund types:
Special Revenue funds are used to account for specific revenue sources that are
restricted, committed, or assigned to expenditures for a particular purpose.
Debt Services funds are used to account for the resources accumulated and
payments made for principal and interest on long –term general obligation debt of
governmental funds.
Permanent funds are used to report resources that are legally restricted to the extent
that only earnings, not principal, may be used for purposes that support the
government’s program.
Internal Service funds are used to account for equipment replacement and
operations, central stores, as well as medical/dental insurance services provided to
other departments on a cost-reimbursement basis.
Pension Trust funds are used to account for the sources and uses of funds to meet
the pension benefit and other post-employment benefit obligations made to firemen
covered under the Plan prior to the creation of the Law Enforcement Officers and
Fire Fighters’ (LEOFF) pension system in 1970.
Agency funds are used to report resources held by the city in a purely custodial
capacity on behalf of the Pasco Public Facility District, the Animal Control
Authority and on behalf of all employees for Payroll Clearing and those employees
with Flexible Spending Accounts.
As a general rule the effect of the interfund activity has been eliminated for the government-
wide financial statements. Exceptions are for business taxes the utility pays to the general
fund. Likewise, other charges between the government’s utility functions and certain other
service functions and various other functions of the government have not been eliminated.
Eliminations of these charges would distort the direct costs and program revenues reported
for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers, 2) operating grants
and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program
revenues. General revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the Water/Sewer Fund are charges to customers. The major
services provided by the proprietary fund are water, sewer, storm drain, irrigation and
industrial waste water processing. Operating expenses for enterprise funds and internal
service funds include the cost of sales and services, administrative expenses, and depreciation
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
41
on capital assets. All revenues and expenses not meeting this definition are reported as non-
operating revenues and expenses.
D. Budgetary Information
1. Scope of Budget
Annual appropriated budgets are adopted for the general and special revenue and on a
modified accrual basis. Budgets are adopted at the fund level.
Appropriations for all funds lapse at year-end. Budgets for capital outlays are re-
appropriated until the purpose of the appropriation has been accomplished or abandoned.
2. Amending the Budget
The City Manager is authorized to transfer budgeted amounts within the funds.
However, any revisions that alter the total appropriations of a fund, or which affects the
number of authorized employee positions, salary ranges, hours, or other conditions of
employment must be approved by the City Council.
When City Council determines it is in the best interest of the City of Pasco to increase or
decrease the appropriation for a particular fund, it may do so by ordinance approved by
one more than the majority after holding public hearings.
The financial statements contain the original and final budget information. The original
budget is the first complete appropriated budget. The final budget is the original budget
adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
legally authorized changes applicable for the fiscal year.
E. Assets, Liabilities, Deferred Inflows, Deferred Outflows, Fund Balance/Net Position
1. Deposits and investments
The government’s cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less from
the date of acquisition.
State statutes and the city’s investment policies authorize the city to invest in obligations
of the U.S. treasury, repurchase agreements and the State Treasurer’s Local Government
Investment Pool (LGIP). The interest on these investments is prorated to the various
funds on a monthly basis.
The City’s deposits are covered by federal depository insurance (FDIC and FSLIC) or by
collateral held in the multiple financial institution collateral pool administered by the
Washington Public Deposit Protection Commission (PDPC).
Investments are generally reported at at fair value for the items held. The LGIP operates
in accordance with appropriate state laws and regulations. The reported value of the pool
is the same as the fair value of the pool shares. See additional deposit investment and
restricted asset information in note 4. A.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
42
2. Receivables and payables
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as “interfund loans
payable/receivable”. All other outstanding balances between funds are reported as “due
to/from other funds.” Any residual balances outstanding between the governmental
activities and business-type activities are reported in the government-wide financial
statements as “internal balances”.
Loans between funds, as reported in the fund financial statements, are included as a
liability in applicable governmental funds so that the indicated fund balance represents
amounts available for appropriation and expendable available financial resources.
Taxes receivable consist of property taxes, sales taxes, interfund taxes, business and
occupation taxes, and excise taxes. Property taxes are levied January 1 on property values
assessed as of December of the prior year. The tax levy is divided into two billings; the
first billing is due April 30 and the second is due October 31.
Customer accounts receivable consist of amounts owed from private individuals or
organizations for goods and services. The allowance for uncollectible accounts for the
ambulance fund is approximately 21% of the outstanding receivable at December 31,
2015.
Grants receivable are reported for grants where qualified expenditures have been made
prior to the end of the year.
Other receivables include municipal court receivables, and interest receivable. Accrued
interest at year end consists of amounts earned by investments, notes and contracts at the
end of the year.
Special assessments are recorded when levied. Special assessments receivable consist of
current and delinquent assessments and related interest and penalties. Deferred
assessments consist of unbilled special assessments that are liens against the property
benefitted. As of December 31, 2015 $553,610 of Governmental and $0 of Business-type
special assessments were delinquent. Assessed property owners are responsible for debt
repayment. The city guarantee’s the debt to the extent of the LID guarantee fund.
Governmental-type special assessments are for street improvements; Business Type
special assessments are for sewer infrastructure.
Notes and contracts receivable consist of amounts owed on open account from private
individuals or organizations for goods and services rendered. Since the City is unable by
law to grant credit to any entity, all loans receivable are related to grant monies received
from other agencies which have authorized the loan as part of the grant process.
Repayment of these loans are used to establish revolving loan funds for loans that match
the original grant purpose.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
43
3. Amounts Due to and from Other Funds and Governments, Interfund Loans and
Advances Receivable
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either interfund loans
receivable/payable or advances to/from other funds. All other outstanding balances
between funds are reported as due to/from other funds. Any residual balances
outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as internal balances.
4. Inventories
There are currently no inventories in governmental funds. Inventories in proprietary
funds are valued using a floating average of costs, which approximates market value.
5. Restricted Assets and Liabilities
These accounts contain resources for construction and debt service, including current
and delinquent special assessments receivable, in the enterprise fund. The current
portion of related liabilities is shown as Payables from Restricted Assets.
6. Capital Assets
Capital assets, which include property, plant, and equipment and infrastructure assets,
are reported in the applicable governmental or business-type columns in the government-
wide financial statements. Capital assets, other than infrastructure, are defined by the
City as assets with an initial, individual cost of more than $5,000 and an estimated useful
life in excess of one year. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed.
The government reports infrastructure assets on a network and subsystem basis. Such
assets are recorded at historical cost if purchased or constructed. Donated capital assets
are recorded at estimated fair market value at the date of donation. Additions,
improvements and other capital outlays that significantly extend the useful life of an
asset are capitalized. The cost of normal maintenance and repairs and street preservation
activities that do not add to the value of the asset or materially extend asset lives are not
capitalized. Assets are depreciated over their useful lives using the straight line
depreciation method.
Major outlays for capital assets and improvements are reported as Construction Work in
Progress as projects are constructed. Interest, if material to the cost of the asset that is
incurred during the construction phase of the capital assets of business-type activities is
included as part of the capitalized value of the assets constructed. Capital Assets and
improvements are capitalized once the project is completed. There were no capitalized
interest costs capitalized by the City during fiscal year 2015.
Capitalization thresholds (the dollar value above which an asset acquisitions are added
to the capital asset accounts and estimated useful lives of capital assets are as follows:
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
44
Assets Threshold Useful Lives
Land All
Building & Structure $5,000 5 - 50
Other improvements $5,000 5 - 100
Machinery & Equipment & Vehicles $5,000 1 - 50
Infrastructure $5,000 5 - 50
7. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a
future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position that applies to a
future period(s) and so will not be recognized as an inflow of resources (revenue) until that
time.
The city has one type of item, unavailable revenues which arises only under a modified
accrual basis of accounting, which qualifies as a deferred inflow. Accordingly unavailable
revenue is reported only in the governmental funds balance sheet. The governmental funds
report unavailable revenues for 2015 as follows:
a. Uncollected property taxes levied.
b. Unbilled special assessments levied against benefited property for the cost of local
improvements. An allowance for uncollectible accounts is not necessary since the
assessments are liens against the property benefited.
c. Rain checks and gift certificates issued by the golf course and certain headstones and
liner sales by the cemetery which obligate the city to future services.
In addition to unavailable revenues, changes in pension assumptions and calculation
variables also create deferred inflows and deferred outflows. These are reported in the
enterprise funds and at the government wide level in the Statement of Net Position.
8. Compensated Absences
The City accrues accumulated unpaid vacation and sick leave and associated employee
related costs when earned (or estimated to be earned) by the employee. All vacation and
sick pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund
financial statements. In governmental funds, such amounts are not accrued using the
modified accrual basis of accounting but are reported as a liability in the government-wide
financial statements.
City of Pasco, Washington 2015 Comprehensive Annual Financial
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45
Sick leave may be accumulated up to a maximum of 960 hours for all employees except
firefighters. Firefighter sick leave may be accumulated up to a maximum of 840 hours.
Upon resignation, retirement or death sick leave is payable at a rate of 25% of accrued
hours up to a maximum accrual base of 720 hours. Vacation leave may be accumulated up
to a maximum of one and a half times the employee’s annual vacation accrual rate and is
payable upon resignation, retirement or death.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about
the fiduciary net position of all state sponsored pension plans and additions to/deductions
from those plans’ fiduciary net position have been determined on the same basis as they
are reported by the Washington State Department of Retirement Systems. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due
and payable in accordance with the benefit terms. Investments are reported at fair value.
10. Long-term Obligations
In the government-wide statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type
statements of net position.
Bond premiums and discounts, as well as issuance costs, when material, are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing uses. Issuance costs, whether or not withheld from actual
debt proceeds received, are reported as professional service costs.
11. Fund Balance and Fund Flow Policies
Fund balance of governmental funds is reported in various categories based on the nature
of any limitations requiring the use of resources for specific purposes. The government
itself can establish limitations on the use of resources through either a commitment
(committed fund balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only for
specific purposes determine by formal action of the government’s highest level of decision-
making authority. The city council is the highest level of decision making authority for the
government that can, by adoption of an ordinance prior to the end of the fiscal year, commit
fund balance. Once adopted, the limitation imposed by the ordinance remains in place until
City of Pasco, Washington 2015 Comprehensive Annual Financial
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46
a similar action is taken (the adoption of another ordinance) to remove or revise the
limitation.
Amounts in the assigned fund balance classification are intended to be used by the
government for specific purposes but do not meet the criteria to be classified as committed.
The council may also assign fund balance as it does when appropriating fund balance to
cover a gap between estimated revenue and appropriations in the subsequent year’s
appropriated budget. Unlike commitments, assignments generally only exist temporarily.
In other words, an additional action does not normally have to be taken for the removal of
an assignment. Conversely, as discussed above, an additional action is essential to either
remove or revise a commitment.
The City has not adopted a specific flow of funds policy relating to the use of restricted
and unrestricted resources when both are available. Therefore the statements are prepared
using the default option provided in GASB 54 which provides that when both restricted
and unrestricted resources are available, restricted resources are used first.
In the fund financial statements, governmental funds report restrictions of fund balance as
follows:
Nonspendable fund balance - includes amounts that are not in spendable form such as
inventory or are required to be maintained intact such as the principal of a permanent fund.
Restricted fund balance - includes amounts that can be spent only for the specific purpose
stipulated by external resource providers such as for grant providers, bondholders, higher
levels of government, or through enabling legislation.
Committed fund balance – includes amounts that can be used only for the specific purposes
determined by a formal action of the city council. Commitments may be changed or lifted
only by the City Council taking the same formal action that imposed the constraint
originally.
Assigned fund balance – includes amounts intended to be used by the government for
specific purposes. Intent can be expressed by the governing body or by an official
designated by the governing body to which the governing body designates authority.
Unassigned fund balance - includes amounts that are available for any purpose.
NOTE 2 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
City of Pasco, Washington 2015 Comprehensive Annual Financial
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A. Explanation of certain differences between the governmental funds balance sheet
and the government-wide statement of net position.
The governmental fund balance sheets includes a reconciliation between fund balance –
total governmental funds and net position – governmental activities as reported in the
government-wide statement of net position. One element of that reconciliation explains that
“Long-term assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds”. The following shows the detail of these capital
asset changes net of accumulated depreciation:
Beginning balance of capital assets excluded from fund level:
Joint venture $ 59,797
Land 14,671,115
Construction in process 12,455,895
Building 22,299,317
Other improvements 3,484,617
Equipment 2,332,202
Infrastructure 130,022,919
Pension asset 5,675,437
Current year change in pension asset (690,792)
Current year spending in construction work in progress 5,965,623
Current year capital purchases 148,815
Current year capital donations received 23,396,410
Current year decrease in joint venture (11,838)
Current year depreciation (12,817,255)
Net adjustment to add to government-wide fund balance to arrive at
Net position-governmental activities $ 206,992,163
Another element of that reconciliation explains that “Long-term liabilities are not due and
payable in the current period and are not reported in the funds.” The following show the
detail of these liability changes:
Beginning balance of long-term liabilities excluded from fund level:
Compensated absences $ (2,048,258)
OPEB obligation (2,523,460)
Pension obligation (5,793,396)
Bonds and notes payable (3,604,608)
Current year changes to pension obligation (2,098,513)
Issuance of new debt (9,102,733)
Current year principal payments reducing debt 581,229
Net adjustment to reduce government-wide fund balance to arrive at
Net position-governmental activities $ (24,589,739)
City of Pasco, Washington 2015 Comprehensive Annual Financial
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B. Explanation of certain differences between the governmental funds statement of
revenues, expenditures, and changes in fund balances and the government-wide
statement of activities
The governmental funds’ statement of revenues, expenditures and changes in fund balances
includes reconciliation between net changes in fund balances – total governmental funds
and changes in net position of governmental activities as reported in the government-wide
statement of activities. The first element of that reconciliation relates to capital activity as
follows:
The second element of that reconciliation relates to debt activity as follows:
New debt issued (9,102,734)
Debt repayment 581,229
Net debt activity (8,521,505)
NOTE 3 – DETAILED NOTES ON ALL FUNDS
A. Deposits, investments and restricted assets
As of December 31, 2015 the government had the following:
Weighted Average
Fair Value Maturities (Years)
Local Government Investment Pool
Total Invested Cash Equivalents $34,374,853 N/A
Investments in Federal Agencies 15,304,926 11.4
Investment in Mutual Funds 4,559,064 N/A
Investment in Notes 40,301 5.34
Total fair value $54,279,144
Portfolio weighted average maturity 11.4
Interest rate risk. Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. In accordance with its investment policy, the City manages its exposure
to declines in fair value by limiting the maturity of investments. Investments over one year require
the City Manager’s approval. In addition, to achieve its financial objective of maintaining liquidity
Capital Outlays for:
Construction in progress 5,965,623
Machinery and equipment 148,716
Contributed capital assets 23,396,410
Current year depreciation (12,817,255)
Loss on joint venture (11,838)
Net capital activity 16,681,656
City of Pasco, Washington 2015 Comprehensive Annual Financial
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49
to meet all operating requirements, the City typically selects investments that have shorter average
maturities. The city’s investment policy does not specifically address interest rate risk.
Credit risk. Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations. The city investment policy allows the following types of investments in
accordance with state law: demand or investment deposits in qualified public depositories located
within the state; United States’ government bonds, notes bills; certificates of deposits from
financial institutions that participate in Washington State’s Public Deposit Protection
Commission’s list of “Qualified Public Depositories”; bankers acceptances, repurchase
agreements and the Washington State Treasurer’s Office Local Government Investment Pool
(LGIP). The investment policy for “credit risk” does not extend beyond the types of authorized
investments and the concentration of credit risk described below. As of December 31, 2014 the
City’s investments in agency securities were all rated AAA. The LGIP is not registered with the
SEC and the fair value of the city’s position in the pool is the same as the value of the pool shares.
The LGIP is regulated by the state of Washington’s state finance committee. Credit risk is limited
as most investments are either obligations of the U.S. Government, government sponsored
enterprises, insured demand deposit accounts or certificates of deposit.
Concentration of credit risk. Concentration of credit risk is the risk of loss attributed to the
magnitude of a government’s investment in a single issuer. It is the policy of the city to diversify
its investment portfolio to eliminate the risk of loss resulting from overconcentration of assets in a
specific class of securities. With the Exception of U.S. Treasury securities and the State Treasurer’s
Local Government Investment Pool (LGIP) no more than twenty percent of the city’s total
investment portfolio should be invested in a single security type and not more than twenty percent
should be invested with a single financial institution.
Concentration of credit risk as a percentage of total investments:
Custodial credit risk – deposits. This is the risk that in the event of a bank failure, the governments’
deposits may not be returned. The city’s policy states that the maximum amount to be placed with
any one depositary shall not exceed the net worth of the institution (at the time of i nvestment) as
determined by the State of Washington Public Deposit Protection Commission (PDPC). According
to the PDPC Act implemented August 11, 1969 financial institutions holding public funds have
requirements to collateralize those funds. The maximum liability of a public depository is equal
to ten percent of all public deposits held by that depositary at the time of the most recent
Fair Value %
Local Government Investment Pool 34,374,853 63%
SBA Participation 362,024 1%
Financing Corp 2,018,120 4%
Federal Nat'l Mortgage Assoc 3,968,170 7%
Federal Home Loan Mtg Corp 6,724,674 12%
FICO 2,231,938 4%
AmFunds Mutual Funds 4,559,064 8%
City of Pasco 40,301 0%
54,279,144 100%
Issurer
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Commission report date or the average of the balances of public deposits on the four most recent
Commission report dates, whichever is greater. This amount, which is subject to audit, represents
the maximum amount the Commission can assess each depository in the event of a loss due to
default of a participating depositary. The city had $22,926,099 on deposit with US Bank on
December 31, 2015. The FDIC insures those deposits up to $250,000. US Bank is required to
collateralize 10% of the remaining funds which is $2,292,610. The temporary custodial credit risk
for uncollateralized deposits at US Bank was $20,383,489 on December 31, 2015.
Custodial credit risk – investments. For an investment, this is the risk that, in the event of the failure
of the counterparty, the government will be able to recover the value of its investments or other
collateral securities that are in the possession of an outside party. The city limits its custodial credit
risk by holding investments that are insured and are registered or held by the city’s agent in the
city’s name. Certificates of deposits are entirely covered by federal depository insurance (FDIC
and FSLIC) or by collateral held in a multiple financial institution collateral pool administered by
the Washington Public Deposit Protection Commission (PDPC).
Restricted assets. The corpus of permanent funds is included in restricted assets. The Water/Sewer
utility issued bond proceeds prior to 2015 for construction projects which were not fully expended
by the end of the current year. The remaining funds are restricted for construction purposes. Certain
resources set aside for the repayment of revenue bonds are classified as restricted assets on the
balance sheet because they are maintained in a separate account and their use is limited by
applicable bond covenants. The “bond debt service” account is used by the Water/Sewer fund to
report resources set aside to subsidize potential deficiencies from the Water/Sewer operations that
could adversely affect debt service payments. The Water/Sewer fund has constructed projects and
assessed special assessments to recover certain portions of the construction costs. Those
assessments receivable are pledged to pay for the related special assessment debt and are therefore
restricted to that purpose. Cash from customers as deposits are also restricted. Restricted assets
(cash and investments) are composed of the following:
Temporary Permanent
Restrictions Restrictions
City View Cemetery Endowment $455,173
Program, grant, donations:
Recreation Donations 9,437
Bi-centennial Contribution 6,264
Drug Forfeit, Evidence, Federal Share 70,602
Claims incurred but not reported (IBNR) cash 760,386
Customer Deposits:
Governmental Funds Customer Deposits 593,189
Water/Sewer Customer Deposits 372,727
Unspent Bond Proceeds:
Police Bond Unspent Bond Proceeds 4,876,061
Water/Sewer Unspent Bond Proceeds 13,386,417
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Debt Covenants:
Water/Sewer Debt Service account 1,911,591
Water/Sewer Debt Reserve account 3,888,654
Cash in Debt Service funds 765,848
Restricted Investments:
Water/Sewer Debt covenants 1,636,761
Incurred But Not Reported (IBNR) 396,528
LID Guarantee 692,935
____________ ___________
Totals $29,367,401 $455,173
B. Receivables
Taxes receivable. Taxes receivable consist of several types of taxes: property taxes, sales taxes and
business & occupation taxes, excise taxes, gambling and admission taxes.
Property taxes. The county treasurer acts as an agent to collect property taxes levied in the county
for all taxing authorities. Collections are distributed by the 10th day of the following month.
Property Tax Calendar
January 1 Taxes are levied and become an enforceable lien against properties.
February 14 Tax bills are mailed
April 30 First of two equal installment payments is due.
May 31 Assessed value of property established for next year’s levy at 100% of
market value.
October 31 Second installment is due.
Property taxes are recorded as a receivable when levied, offset by deferred revenue. During the
year property tax revenues are recognized when cash is collected and deferred property tax revenue
is reduced. Prior year tax levies were recorded using the same principle. The reported balances
include tax payments from the county received through December 31, 2015. Tax receipts received
by the county in December and January but remitted to the City in January and February are
included as part of the tax receivable amount reported. Delinquent taxes totaled $268,762 and since
these funds are not available revenue recognition is deferred. Subsequent collections of delinquent
amounts will be recorded in revenue in the period actually received.
The City may levy up to $3.60 per $1,000 of assessed valuation for general governmental services
subject to two limitations:
a. Except as otherwise provided for, the levy for taxing districts in any year shall be set so
that the regular property taxes payable in the following year shall not exceed the limit
factor of 101% multiplied by the amount of regular property taxes lawfully levied for
such district in the highest of the three most recent years in which such taxes were levied
for such district plus an additional dollar amount calculated by multiplying the increase
in assessed value in that district resulting from new construction, improvements to
City of Pasco, Washington 2015 Comprehensive Annual Financial
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52
property, and any increase in the assessed value of state-assessed property by the regular
property tax levy rate of that district for the preceding year.
b. The Washington State Constitution limits the total regular property taxes to one percent
of assessed valuation or $10 per $1,000 of value. If the taxes of all districts exceed this
amount, each is proportionately reduced until the total is at or below the one percent
limit. Effective November 29, 2007 Washington State House Bill (HB) 2416 reinstated
the one percent property tax limit factor adopted by voters under Initiative No. 747
following the invalidation of that initiative by the courts. The provisions of HB 2416
are retroactive to and prospective from taxes levied for collection in 2002. This
retroactivity extinguishes the additional levying capacity resulting from the November
2007 court ruling but let’s stand any banked capacity accumulated prior to the court
ruling and the authority to continue to bank future unused capacity.
In November 2015, the City approved an ordinance establishing the operating levy for 2016 of
$7,625,727 based on an assessed valuation of $3,937,446,202 and an estimated rate of $1.93671
per $1,000 of assessed value. In November 2014, the City approved an ordinance establishing the
operating levy for 2015 of $7,159,507 based on an assessed valuation of $3,687,411,102 and an
estimated rate of $1.94160802 per $1,000 of assessed value.
Additionally, in November 2015, the city levied an additional amount to cover bond payments for
the 1999 UTGO bond for the Library Remodel ($53,959) and the 1999 UTGO bond for the Fire
Station ($68,341).
Sales and excise taxes. The state is the collection agent for sales and real estate excise taxes in the
State of Washington. The vendor has until approximately the end of the following month to remit
sales tax to the state for taxable sales. The state then has approximately another month to remit the
city’s portion of the tax to the city. The city’s basic sales tax rate is one-half of one percent.
Utility occupation taxes. The city assessed a gross revenue tax and use on certain utilities within
the city. The rate is for these taxes are eight and one-half percent.
Other receivables. As of December 31, 2014 the only major fund of the city to have an allowance
for uncollectible accounts was the General Fund. The gross Municipal Court Receivable is
$10,385,108 of which $9,381,907 is not expected to be collected (allowance for uncollectible
accounts) and thus only the net amount of $1,003,201 is included in the financial statements. Non-
major funds receivable balances include the applicable allowance for uncollectible accounts (which
relates to ambulance services) of $100,000.
Special assessments and unavailable revenue. Governmental funds report unavailable revenue in
connection with receivables for revenues that are not considered to be available to liquidate
liabilities of the current period. Governmental funds also defer revenue recognition in connection
with resources that have been received but not yet earned. At the end of the current fiscal year, the
various components of deferred inflows reported in the governmental funds were as follows:
Unavailable Revenue – Property Taxes $ 268,762
Unavailable Revenue – Special Assessments/Loans 553,610
Unavailable Revenue – Municipal Court 1,003,201
City of Pasco, Washington 2015 Comprehensive Annual Financial
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53
Unavailable Revenue – Other 202,810
Total Unavailable Revenues $2,028,383
Loans receivable. Loans receivables consist of amounts owed on an open account from private
individuals or organizations for goods and services rendered. Since the City is unable by law to
grant credit to any entity, all loans receivable are related to grant monies received from other
agencies which have authorized the loan as part of the grant process. Repayments of these loans
are used to establish revolving loan funds for loans that match the original grant purpose. The long
term portion of those loans receivable are included in reserved fund balance as the assets are not
available to liquidate liabilities in the current period.
C. Capital Assets
Capital asset activity for the year ended December 31, 2015 was as follows:
Governmental Activities:Beginning
Balance 01/01/15
Current Period
Increases Current Period Decreases Ending Balance 12/31/15
Capital assets, not being depreciated
Land 14,671,115$ 387,950$ 695,482$ 14,363,583$
Construction in progress 12,668,345 7,009,713 6,465,875 13,212,182
Total capital assets, not being depreciated 27,339,460 7,397,663 7,161,357 27,575,765
Capital assets, being depreciated:
Building & structure 37,666,512 4,163,160 - 41,829,672
Other improvements 9,240,869 113,267 - 9,354,136
Machinery and equipment 12,881,148 1,498,211 86,853 14,292,506
Infrastructure 201,801,093 23,848,512 - 225,649,605
Total capital assets being depreciated 261,589,622 29,623,150 86,853 291,125,919
Less accumulated depreciation:
Building & structure 15,367,195 999,324 - 16,366,519
Other improvements 5,756,252 545,881 - 6,302,133
Machinery and equipment 6,998,469 858,067 82,877 7,773,659
Infrastructure 71,778,274 10,953,536 - 82,731,810
Total accumulated depreciation 99,900,190 13,356,808 82,877 113,174,121
Total capital assets, being depreciated, net 161,689,432 16,266,342 3,976 177,951,798
Governmental activities capital assets net 189,028,892$ 23,664,005$ 7,165,333$ 205,527,563$
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Depreciation expense by function:
Business Type Activities:Beginning
Balance 01/01/15
Current Period
Increases
Current Period
Decreases
Ending Balance
12/31/15
Capital assets, not being depreciated
Land 2,520,925$ 11,818$ -$ 2,532,743$
Construction in process 5,715,594 3,745,131 5,522,997 3,937,728
Total capital assets, not being depreciated 8,236,519 3,756,949 5,522,997 6,470,471
Capital assets, being depreciated:
Building & structure 73,600,187 3,448,048 - 77,048,235
Machinery and equipment 11,137,437 342,989 16,633 11,463,793
Infrastructure 152,748,186 6,168,928 - 158,917,114
Total capital assets being depreciated 237,485,810 9,959,965 16,633 247,429,142
Less accumulated depreciation:
Building & structure 37,636,743 2,573,445 - 40,210,188
Machinery and equipment 2,841,452 1,001,852 16,633 3,826,671
Infrastructure 35,659,983 3,193,067 - 38,853,050
Total accumulated depreciation 76,138,178 6,768,364 16,633 82,889,909
Total capital assets, being depreciated, net 161,347,632 3,191,601 - 164,539,233
Business activities capital assets net 169,584,151$ 6,948,550$ 5,522,997$ 171,009,704$
Governmental activities:
General government 380,285$
Public Safety 406,317
Transportation 11,259,284
Economic environment 205,628
Culture & recreation 1,105,296
Total depreciation expense - governmental activities 13,356,810$
Business-type activities:
Water 2,527,488$
Irrigation 523,710
Sewer 3,200,622
Process water reuse facility 258,049
Stormwater 258,495
Total depreciation expense- business-type activities:6,768,364$
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Construction commitments
The City of Pasco has active construction projects as of December 31, 2015. The projects include
street construction and various utility constructions. At year end, the city’s commitments with
contractors are as follows:
D. Interfund loans receivable, payable and transfers
Interfund loans
The composition of interfund loan and interfund due to/from balances as of December 31, 2015 is
as follows:
Interfund transfers
Transfers between funds during the year ended December 31, 2015 are as follows:
CAFR PROJECT SPENT REMAINING
CATEGORY COMMITMENT TO DATE COMMITMENTS
STREET 5,059,847 1,589,464 3,470,383
GENERAL 5,622,629 5,622,629 -
WATER 1,896,761 698,294 1,198,467
SEWER 6,086,405 1,105,748 4,980,657
PWRF 4,084,050 2,051,983 2,092,067
STORMWATER 192,166 35,795 156,371
IRRIGATION 57,469 - 57,469
TOTAL 22,999,327$ 11,103,913$ 11,955,414$
Interfund Loan Loan Original Loan Outstanding Loan Interfund Loan Due in More
Receivable Purpose Amount Amount Payable Than 1 Year
General Fund Temporary cash flow 390,780 390,780 Nonmajor Special Revenue -
General Fund Temporary cash flow 24,680 24,680 Agency Fund -
Nonmajor Special Revenue LID Financing 414,592 380,061 Nonmajor Debt Service 344,148
Nonmajor Internal Service LID Financing 438,905 94,567 Nonmajor Debt Service 64,567
Nonmajor Internal Service Land purchase 1,400,000 942,543 Nonmajor Special Revenue 475,937
Nonmajor Special Revenue Parking Lot Repaving 749,000 359,765 Nonmajor Special Revenue 243,370
TOTAL 3,417,957 2,192,396 1,128,022
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Transfers are used to 1) move unrestricted general fund revenues to finance various programs that
the government must account for in other funds in accordance with budgetary authorizations,
including amounts provided as subsidies or matching funds for various grant programs; 2) move
investment earnings or operating subsidies from one fund to its designated, authorized purpose
carried out by another fund; 3) move resources designated for construction to and from
construction funds as projects are created and/or completed.
There were one time transfers for the purpose of construction between several special revenue
funds, the general fund and the construction funds. There were on-going transfers to move grant
support from the Community Development Block Grant fund to the general fund for qualified
grant activities; from earnings in the cemetery endowment fund to pay the general fund for
maintenance activities; from earnings and fund balance of the Boulevard Maintenance fund to the
general fund to pay for boulevard maintenance activities and from the general fund to the
ambulance fund.
E. Leases
Operating leases. The city leases its front-line police vehicles. Leases are generally for a three year
period. Generally, at the end of the three year period the lease ends and the city returns the vehicles.
New vehicles and leases are then acquired. In addition the city has two leases for copiers. The
following represents the future minimum lease payments:
F. Long-term Debt
General Nonmajor
Special
Internal
Service Total
General 138,000.00 138,000.00
Nonmajor Special Revenue 915,703.00 407,345.76 1,323,048.76
Major Construction 3,494,028.63 2,397,298.40 5,891,327.03
Internal Service 181,280.00 80,000.00 58,000.00 319,280.00
Total 4,591,011.63 3,022,644.16 58,000.00 7,671,655.79
TRANSFER FROM
T
R
A
N
S
F
E
R
T
O
Year Ending
December 31 Amount Year Ending December 31 Amount
2016 847$ 2016 101,454$
2017 150,063
2018 148,109
2019 87,575
Total 847$ Total 487,201$
Police vehiclesCopier Lease
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Changes in long-term liabilities. For the governmental activities, compensated balances are
generally liquidated by the General and Streets funds while worker’s compensation claims are
liquidated by the Medical/Dental internal services fund. The net pension obligation and the net
OPEB obligation are both generally liquidated by the General fund.
Long-term liability activity for the year ended December 31, 2015 was as follows:
Long-term debt. The city issues general obligation bonds to finance capital improvements such
as bridges, streets, municipal buildings and enterprise facilities such as water and sewer utilities.
Bonded indebtedness has also been entered into (currently and in prior years) to advance refund
several general obligation and revenue bonds. The City is also liable for notes that were entered
into for the purchase of the Animal Control facilities and Port Airport Fire Building. These notes
are considered obligations of the general government and are being repaid with general
governmental resources. Proprietary fund revenues are used to repay revenue and refunding
bonds as well as certain loans. The bond issues are not subject to arbitrage but the investments
held in reserves (and the Guarantee Fund for LID 135 and 145) are subject to rebate and yield
restrictions.
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
GOVERNMENTAL ACTIVITIES
General obligation bonds 1 3,315,000$ 8,795,000$ (530,000)$ 11,580,000$ 850,000$
Plus Unamortized Premiums 307,734 - 307,734 15,387
Total Bonds Payable 3,315,000$ 9,102,734$ (530,000)$ 11,887,734$ 865,387$
Special Assessment Bond 1 160,000 - - 160,000 -
External loans 129,601 - (51,229) 78,372 44,418
Compensated absences 2 2,048,258 1,367,127 (1,309,037) 2,106,348 1,309,037
Net OPEB obligation 2,523,460 1,648,633 (841,009) 3,331,084
-
Governmental activity long-term liabilities 8,176,319$ 12,118,494$ (2,731,275)$ 17,563,538$ 2,218,842$
3,604,601.00 (7.00)
BUSINESS ACTIVITIES
Revenue bonds 28,030,000 14,380,000 (5,720,000) 36,690,000 1,635,000
Plus Unamortized Premiums - 1,595,529 - 1,595,529 63,821
Total Bonds Payable 28,030,000$ 15,975,529$ (5,720,000)$ 38,285,529$ 1,698,821$
External loans 8,664,110 - (1,719,487) 6,944,623 1,620,576
Compensated absences 2 312,275 232,787 (333,483) 211,579 105,790
Business activity long-term liabilities 37,006,385$ 16,208,316$ (7,772,970)$ 45,441,731$ 3,425,187$
Total Changes in Long-Term Liabilities 45,182,704$ 28,326,810$ (10,504,245)$ 63,005,269$ 5,644,029$
Notes:
1 Reclassifed LID Bond payable from General obligation bond as the bond is not backed by the full faith and credit of the government
but is only with commitment. Also the beginning balance $78,313 was reclassifed from General obligation bonds as the debt is a loan
and not a bond.
2Due to prior period corrections, the beginning balances for compensated absences were restated. The governmental
activities was increased by $538,662 and the Business Activities increased by $79,661.
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GENERAL OBLIGATION BONDS
MATURITY INTEREST ORIGINAL INSTALLMENT
PURPOSE RANGE RATE RANGE AMOUNT 2016 AMOUNT
1999 LTGO Library and Fire Station 2015-2019 5.45% - 5.60%$1,700,000 $100,000
2011 LTGO Refund 2001 LTGO 2015-2020 3.00% - 4.00%4,110,000 445,000
2015 LTGO Police Station 2015-2045 3.00% - 4.00%8,795,000 305,000
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2016 850,000 444,200
2017 870,000 416,200
2018 895,000 382,900
2019 930,000 345,500
2020 860,000 306,700
2021-2025 1,955,000 1,211,500
2026-2030 2,375,000 791,413
2021-2035 2,845,000 326,426
TOTAL 11,580,000$ 4,224,839$ -$ -$
- -
SPECIAL ASSESSMENT BOND
MATURITY INTEREST ORIGINAL INSTALLMENT
PURPOSE RANGE RATE RANGE AMOUNT 2016 AMOUNT
2010 LID 145 A Street Improvments 2012-2020 2.25% - 5.00% 785,129$ -$
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2016 - 7,800
2017 - 7,800
2018 - 7,800
2019 80,000 7,800
2020 80,000 4,000
TOTAL 160,000$ 35,200$ -$ -$
- -
REVENUE BONDS
MATURITY INTEREST ORIGINAL INSTALLMENT
PURPOSE RANGE RATE RANGE AMOUNT 2016 AMOUNT
2009 Water/Sewer 2015- 2029 3.00%-4.75%10,045,000 450,000
2010 A Ref 1998B Plus New 2015- 2029 3.00%-4.370%9,070,000 275,000
2010 T Ref 1998A 2018 4.62%1,240,000 165,000
2013 A Sewer 2015-2028 3.00%-4.00%2,520,000 100,000
2013 T Process Water Reuse Facility 2015-2028 0.69%-4.29%7,235,000 435,000
2015 Water/Sewer 2015-2040 2.00%-5.00%14,380,000 210,000
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2016 1,635,000$ 1,507,209$
2017 1,715,000 1,496,141
2018 1,760,000 1,439,631
2019 2,045,000 1,379,961
2020 2,115,000 1,303,369
2021-2025 10,000,000 5,270,625
2026-2030 7,565,000 3,147,403
2031-2035 4,340,000 1,888,750
2036-2040 5,515,000 706,450
TOTAL -$ -$ 36,690,000$ 18,139,539$
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
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In 2015 The city issued $14,380,000 of revenue refunding bonds to provide resources to pay the
costs of construction of improvements to the city’s water treatment plant; for the installation and
improvement of various water lines throughout the water system; to pay for additions to the City’s
sewage treatment facility and sewer line extensions; to refund certain outstanding water and sewer
revenue bonds of the City; fund an increase in the required balance in the reserve account; and to
pay the costs of issuance of the bonds. Bond proceeds were deposited with the Refunding Trustee
and invested in noncallable direct obligations of the United States of America that will mature and
bear interest at rates sufficient, together with cash held by the Refunding Trustee, to pay all future
debt service payments on $4,080,000 of refunded debt. As a result, the refunded bonds are
considered to be defeased and the liability has been removed from the business activities column
of the statement of net position. The present value savings (economic gain) from the refinancing
was $408,382.
EXTERNAL LOANS
MATURITY INTEREST ORIGINAL INSTALLMENT
PURPOSE RATE AMOUNT 2016 AMOUNT
2002 Animal Control Facililty Land 12/1/2016 6.24%275,500 29,678
2006 Port Airport Fire Building 7/12/2016 4.00%120,000 8,392
LID 146 Special Assessment Note 5/2/2021 4.10%89,351 6,348
Riverview Trunk/SE Sewer PW-00-691-043 6/30/2020 1.00%1,890,000 111,140
2000 Sewer Treatment Plant Phase 1&2 SRF Loan 7/31/2020 1.00%23,700,000 1,509,436
YEAR ENDING
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2016 44,418 3,155 1,620,576 216,076
2017 6,608 1,392 1,673,869 161,673
2018 6,879 1,121 1,729,043 105,387
2019 7,161 839 1,786,165 47,154
2020 7,454 546 134,970 1,738
2021-2025 5,852 240
2026-2030
TOTAL 78,372$ 7,293$ 6,944,623$ 532,028$
DUE TO OTHER GOVERNMENTS
INTEREST ORIGINAL INSTALLMENT
PURPOSE MATURITY RATE AMOUNT 2016 AMOUNT
Sewer Treatment Plant Phase 1&2 SRF Loan 7/31/2020 3.50%25,010,505 1,719,955
YEAR ENDING GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
DECEMBER 31 PRINCIPAL INTEREST PRINCIPAL INTEREST
2016 1,620,576$ 216,076$
2017 1,673,869$ 161,673$
2018 1,729,043$ 105,387$
2019 1,786,165$ 47,154$
2020 134,970$ 1,738$
TOTAL 6,944,623$ 532,028$
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
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NOTE 4 – RISK MANAGEMENT
The City of Pasco maintains insurance against most normal hazards except for unemployment and
automobile collision, where it has elected to become self-insured.
For unemployment claims, the City is on a 100% reimbursable program with the State where the
City pays all unemployment claims charged against it.
The City of Pasco is a member of the Washington Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.3 RCW (Interlocal
Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for
the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-
insuring, and/or jointly contracting for risk management services. WCIA has a total of over 162
members.
New members initially contract for a three-year term, and thereafter automatically renew on an
annual basis. A one-year withdrawal notice is required before membership can be terminated.
Termination does not relieve a former member from its unresolved loss history incurred during
membership.
Liability coverage is written on an occurrence basis. Effective January 2011 City of Pasco coverage
changed to a $100,000 per incident deductible from a no deductible policy. Coverage includes
general, automobile, police professional, public officials’ errors and omissions, stop gap, and
employee benefits liability. WCIA limits are $4 million per occurrence in the self-insured layer,
and $16 million per occurrence in the re-insured layer. The excess layer is insured by the purchase
of reinsurance and is subject to aggregate sub-limits in the excess layers. Total limits are $20
million per occurrence subject to aggregate sublimits in the excess layers. The Board of Directors
determines the limits and terms of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity bonds, inland marine, and
boiler and machinery are purchased on a group basis. Various deductibles apply by type of
coverage. Property insurance and auto physical damage are self-funded from the member’s
deductible to $750,000, for all perils other than flood and earthquake, and insured above that
amount by the purchase of reinsurance. (City does not participate in these programs; all is
purchased through commercial broker as identified on this page).
In-house services include risk management consultation, loss control field services, claims and
litigation administration, and loss analyses. WCIA contracts for the claims investigation
consultants for personnel issues and land use problems, insurance brokerage and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively r ated
basis, as determined by an outside, independent actuary. The assessment covers loss, loss
adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the right to
additionally assess the membership for any funding shortfall.
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An investment committee, using investment brokers, produces additional revenue by investment
of WCIA’s assets in financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from
each member. The Board elects an Executive Committee and appoints a Treasurer to provide
general policy direction for the organization. The WCIA Executive Director reports to the
Executive Committee and is responsible for conducting the day-to-day operations of WCIA.
Property, Inland Marina, boiler, machinery and employee fidelity insurance is purchased through
commercial insurance brokers.
The City is self-insured for medical and dental coverage for its employees. A third party
administrator, Benefits Management, Inc. processes all claims for reimbursement. The third party
administrator provides utilization management services and requires pre-authorization for all non-
emergency hospital confinements. It is the City's policy to maintain at least three months of
average monthly claims in cash reserves. To limit the exposure for large claims, the City purchases
individual stop-loss coverage from a commercial insurance carrier that limits the City's exposure
for claim losses to $80,000 per individual. The amount of medical/dental claims in excess of
commercial insurance for the last three years are:
2013 2014 2015
$4,575,365 $4,396,624 $4,627,663
NOTE 5: JOINT AGREEMENT/JOINT VENTURES
Bi-County Police Information Network
The Bi-County Police Information Network (BI-PIN) was established November 24, 1982, when
an Interlocal Agreement was entered into by five participating municipal corporations, the cities
of Kennewick, Pasco, and Richland, and Benton and Franklin Counties. BI-PIN was established
to assist the participating police and sheriff's departments in the deterrence and solution of criminal
incidents. BI-PIN is served by an Executive Committee composed of the City Manager of each of
the cities and a member from each of the Boards of County Commissioners of Benton and Franklin
Counties. A liaison from the Bi-County Chiefs and Sheriffs is an ex officio, non-voting member.
The allocation of financial participation among the participating jurisdictions is based upon the
approved budget for that year and is billed quarterly in advance to each agency. On dissolution of
the Interlocal Agreement, the net position will be shared based upon participant contributions.
Effective January 1, 1992, the City of Kennewick assumed responsibility for the operation of the
BI-PIN system. As the Operating Jurisdiction, the City of Kennewick provides all necessary
support services for the operation of BI-PIN such as accounting, legal services, risk management
and information systems. The equity reduced by BI-PIN in 2015 for these transactions was $8,713.
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The City of Pasco's equity interest in BI-PIN was $44,236 on December 31, 2015, which is reported
as investment in joint ventures in the government-wide statement of net position. The change in
equity is reflected in the government-wide statement of activities under Public Safety. The City
does not anticipate any income distribution from BI-PIN since charges are assessed only to recover
anticipated expenses.
Complete separate financial statements for BI-PIN may be obtained at the City of Kennewick, 210
West Sixth Avenue, Kennewick, Washington 99336.
Metropolitan Controlled Substance Enforcement Group
The Metropolitan Controlled Substance Enforcement Group (Metro) was established prior to 1987,
when six participating municipal corporations entered into an Interlocal Agreement. These entities
include the cities of Kennewick, Pasco, Richland, and West Richland, and Benton and Franklin
Counties. Metro was established to account for the proceeds of forfeitures, federal grants, and
court ordered contributions, and to facilitate the disbursement of those proceeds for the purpose of
drug enforcement and investigations. Metro is served by an Executive Committee composed of
the City Manager, or designee, of each of the cities and a member from each of the Boards of
County Commissioners of Benton and Franklin Counties. In addition, a Governing Board,
consisting of the Police Chiefs from each of the cities and the Sheriffs and Prosecuting Attorneys
from the two counties, administers daily activity.
Effective July 1, 2009, the City of Kennewick assumed responsibility for the operation of Metro.
As the Operating Jurisdiction, the City provides all necessary support services for the operation of
Metro such as accounting, legal services and risk management.
The City of Pasco's equity interest in Metro was $3,723 as of June 30, 2015, which is reported as
an investment in joint ventures in the government-wide Statement of Net position. The 2015
reduction in equity was $3,125. The change in equity is reflected in the government-wide statement
of activities under Public Safety. The City does not anticipate any income distribution from Metro
since charges are assessed only to recover anticipated expenses.
Complete separate financial statements for Metro may be obtained from the City of Kennewick,
210 West Sixth Avenue, Kennewick, Washington 99336.
Tri-City Animal Control Authority
In 2005 the city entered into an interlocal agreement with the cities of Kennewick and Richland to
jointly fund the operations of the Animal Control Authority (ACA). The ACA was established to
provide animal control and sheltering services. ACA is served by an Executive Committee
composed of the City Manager, or designee, of each of the cities.
In 2005, the City of Pasco was designated as the Operation Jurisdiction for the ACA. As the
Operating Jurisdiction, the City provides all necessary support services for the operation such as
accounting, contract administration and risk management.
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Complete separate financial statements for ACA may be obtained from the City of Pasco, P.O. Box
293, Pasco, Washington 99301.
NOTE 6: RELATED PARTIES/ORGANIZATIONS
Pasco Public Facility District
Pursuant to RCW 35.57 (the “City PFD Act”) the Pasco Public Facilities District was formed and
created by Ordinance No. 3558 on July 15, 2002, coextensive with the boundaries of the City, with
the powers and authority set forth in the City PFD Act. The District was established for the purpose
of acquiring, constructing, owning, remodeling, maintaining, equipping, re-equipping, repairing,
financing, operating one or more Regional Centers, as defined by the RCW 35.57.020 and/or
participating with any other qualified public facilities district in a cooperative and joint
development of a Regional Center in the Tri-Cities area by interlocal agreement.
The members of the board of directors of the District (the “PFD Board”) shall be selected and
appointed by the Council, as required by the RCW. The PFD Board consisted of five members.
Three of the members will be appointed based on recommendations from local organizations. The
members serve four-year terms. The Council may, by resolution, remove a member for any reason.
Vacancies will be filled by appointment by the Council.
All corporate powers of the District will be exercised by or under the authority of the PFD Board;
and the business, property and affairs of the District shall be managed under the direction of the
PFD Board, except as may be otherwise provided for by law or in its Charter.
Complete separate financial statements for the District may be obtained from the City of Pasco,
P.O. Box 293, Pasco, WA 99301.
Downtown Pasco Development Authority
Pursuant to RCW 35.21, the Downtown Pasco Development Authority was formed and created by
Ordinance No. 3985 (the DPDA Act) on December 20, 2010, coextensive with the boundaries of
the City, with the powers and authority set forth in the City DPDA Act. The Authority was created
to administer and e xecute Federal grants or programs; to receive and administer private
funds; goods or services for any lawful public service; and to perform any lawful public
purpose or public function to provide for the revitalization and enhancement of the
downtown Pasco area.
The members of the board of directors of the Authority (the “DPDA Board”) are selected and
appointed by the Mayor of the City of Pasco, subject to confirmation by the City Council. The
DPDA Board consists of nine members. Five of the members are representative of for-profit
business or property owners within the downtown area. At least two members are representative
of the banking and/or real estate profession, and at least two members are representatives of
business or corporate management. The members serve four-year terms. The Council may, by
resolution, remove a member for any reason. Vacancies will be filled by appointment by the
Mayor, subject to confirmation by the City Council.
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All corporate powers of the Authority will be exercised by or under the authority of the DPDA
Board; and the business, property and affairs of the Authority shall be managed under the direction
of the DPDA Board, except as may be otherwise provided by law or in its Charter.
In 2015, the City expended $151,200 in subsidies and pass-through grants to the DPDA. As part
of its charter, the DPDA was granted the right to receive the revenues generated by the Farmers’
Market and the Specialty Kitchen program. The activity from those two programs are not reflected
in the amount noted above.
Financial statements for the Authority may be obtained from the Downtown Pasco Development
Authority at 720 W. Lewis Street, Suite 131, Pasco, WA 99301.
Trade, Recreation, Agricultural Center
In 1994 the City entered into an agreement with Franklin County for the Trade, Recreation, and
Agricultural Center (TRAC). The City and Franklin County share in the costs of operating and
covering TRAC’s debt service. Franklin County handles all operating decisions and financial
reporting for TRAC.
The City accounts for its portion of TRAC activity in the TRAC Special Revenue Fund. For
calendar year 2015, the City of Pasco paid Franklin County $256,366 for operating expenditures.
Additionally, in 2014 the City provided $100,000 to the County to assist with TRAC’s cash flows.
This will be returned to the City in 2026, when the existing agreement lapses. It is classified on
the balance sheet as a non-current asset: Due from Other Government. As of December 31, 2015,
the TRAC Fund had a fund balance of $207,204.
Complete financial statements for TRAC may be obtained from Franklin County, 1016 N. 4 th
Avenue, Pasco, Washington.
Housing Authority of the City of Pasco and Franklin County
The Housing Authority of the City of Pasco and Franklin County was formed and created by
Ordinance No. 2299 on September 8, 1981, in order to pursue the rehabilitation and redevelopment
of blighted areas containing unsanitary or unsafe habitations located within the City of Pasco and
Franklin County. Its formation empowered the joint housing authority to exercise all rights referred
to under RCW 35.82 “Housing Authority Law.”
Three of the five Authority board members are appointed by the City Council.
During 2015, the Authority received $18,057 in pass-through grants administered by the City. All
other payments received from the City related to lease payments. In 2015, the City and the
Authority entered into an agreement which will result in Payment in Lieu of Taxes (PILOT) to the
City starting in 2015 in order to defray the cost of the City providing essential local public services.
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Financial statements for the Authority may be obtained from the Housing Authority of the City of
Pasco and Franklin County, 2505 W. Lewis Street, Pasco, WA 99301.
NOTE 7: JOINTLY GOVERNED ORGANIZATIONS:
Tri-Cities Regional Public Facilities District
Pursuant to RCW 35.57 the Tri-Cities Regional Public Facilities District (District) was formed
jointly by the Cities of Pasco, Kennewick, and Richland. The District was established for the
purpose of acquiring, constructing, owning, remodeling, maintaining, equipping, re-equipping,
repairing, financing, operating one or more Regional Centers, as defined by the RCW 35.57.020
and/or participating with any other qualified public facilities districts in a cooperative and joint
development of a Regional Center in the Tri-Cities area, by interlocal agreement.
The District is governed by a nine-member board, with three members representing each city.
Each member must either be a member of the City Council or the Public Facilities District of the
representative city.
Franklin County Emergency Management
Franklin County Emergency Management (FCEM) is a political subdivision of Franklin County
and its municipalities. The FCEM is responsible for coordinating and establishing emergency
response plans to prepare Franklin County for emergencies involving the following: Energy
Northwest; the Hanford Nuclear Reservation; the Pasco Airport; and all Homeland Security,
natural and man-made disasters
FCEM is governed by a seven member board, with two County Commissioners, one City Manager
or designee from each of the following cities: Connell, Kahlotus, and Mesa. The City of Pasco
has two representatives on the board due to its population base.
Benton-Franklin Council of Governments
The Benton-Franklin Council of Governments (BFCG) is a voluntary association of the units of
local government, whose purpose is to facilitate a cooperative approach to regional problem
solving.
Seventeen regular voting members represent the two counties, local governments, including a
Public Utility District, a Transportation District, a Port and the Washington State Department of
Transportation. The City of Pasco has one City Council member as its voting representative on
the Board. In addition to regular voting members, there are one associate member and two affiliate
members.
Benton-Franklin Council of Governments Economic Development District
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The Benton-Franklin Council of Governments Economic Development District (EDD) is a
voluntary association of the units of local government and private sector members whose purpose
is to facilitate a cooperative approach to regional economic development.
The board is comprised of the members of the Benton-Franklin Council of Governments plus nine
representatives from the private sector.
8. EMPLOYEE RETIREMENT SYSTEMS AND PENSION PLANS
The City implemented GASB Statement 68, Accounting and Financial Reporting for Pensions in January
2015. The following table represents the aggregate pension amounts for all plans subject to the requirements
of the GASB Statement 68, Accounting and Financial Reporting for Pensions for the year 2015:
Aggregate Pension Amounts – All Plans
Pension liabilities $9,852,571
Pension assets $4,984,645
Deferred outflows of resources $3,233,984
Deferred inflows of resources $2,895,364
Pension expense/expenditures $ 754,009
State Sponsored Pension Plans
Substantially all the city’s full-time and qualifying part-time employees participate in one of the following
statewide retirement systems administered by the Washington State Department of Retirement Systems,
under cost-sharing, multiple-employer public employee defined benefit and defined contribution retirement
plans. The state Legislature establishes, and amends, laws pertaining to the creation and administration of
all public retirement systems.
The Department of Retirement Systems (DRS), a department within the primary government of the State
of Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes
financial statements and required supplementary information for each plan. The DRS CAFR may be
obtained by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia, WA 98540-8380
Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov.
Public Employees’ Retirement System (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior
Courts; employees of the legislature; employees of district and municipal courts; employees of local
governments; and higher education employees not participating in higher education retirement programs.
PERS is comprised of three separate pension plans for membership purposes. PERS plans 1 and 2 are
defined benefit plans, and PERS plan 3 is a defined benefit plan with a defined contribution component.
City of Pasco, Washington 2015 Comprehensive Annual Financial
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PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two
percent of the member’s average final compensation (AFC) times the member’s years of service. The AFC
is the average of the member’s 24 highest consecutive service months. Members are eligible for retirement
from active status at any age with at least 30 years of service, at age 55 with at least 25 years of service, or
at age 60 with at least five years of service. Members retiring from active status pr ior to the age of 65 may
receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the choice of a
survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of-living
adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor
and Industries. PERS 1 members were vested after the completion of five years of eligible service. The
plan was closed to new entrants on September 30, 1977.
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer
contribution rate is developed by the Office of the State Actuary and includes an administrative expense
component that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts
Plan 1 employer contribution rates. The PERS Plan 1 required contribution rates (expressed as a percentage
of covered payroll) for 2015 were as follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January through June 2015 9.21% 6.00%
July through December 2015 11.18% 6.00%
* For employees participating in JBM, the contribution rate was 12.26%
The city’s actual contributions to the plan were $15,958 for the year ended December 31, 2015.
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as
two percent of the member’s average final compensation (AFC) times the member’s years of service for
Plan 2 and 1 percent of AFC for Plan 3. The AFC is the average of the member’s 60 highest-paid
consecutive service months. There is no cap on years of service credit. Members are eligible for retirement
with a full benefit at 65 with at least five years of service credit. Retirement before age 65 is considered an
early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and are 55 years of
age or older, are eligible for early retirement with a benefit that is reduced by a factor that varies according
to age for each year before age 65. PERS Plan 2/3 members who have 30 or more years of service credit
and are at least 55 years old can retire under one of two provisions:
With a benefit that is reduced by three percent for each year before age 65; or
With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-
to-work rules.
PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a
reduction of five percent for each year of retirement before age 65. This option is available only to those
who are age 55 or older and have at least 30 years of service credit. PERS Plan 2/3 retirement benefits are
also actuarially reduced to reflect the choice of a survivor benefit. Other PERS Plan 2/3 benefits include
duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at three
percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor
and Industries. PERS 2 members are vested after completing five years of eligible service. Plan 3 members
City of Pasco, Washington 2015 Comprehensive Annual Financial
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are vested in the defined benefit portion of their plan after ten years of service; or after five years of service
if 12 months of that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment
earnings on those contributions. PERS Plan 3 members choose their contribution rate upon joining
membership and have a chance to change rates upon changing employers. As established by statute, Plan
3 required defined contribution rates are set at a minimum of 5 percent and escalate to 15 percent with a
choice of six options. Employers do not contribute to the defined contribution bene fits. PERS Plan 3
members are immediately vested in the defined contribution portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State
Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include
a component to address the PERS Plan 1 UAAL and an administrative expense that is currently set at 0.18
percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee
contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required contribution rates (expressed
as a percentage of covered payroll) for 2015 were as follows:
PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
January through June 2015 9.21% 4.92%
July through December 2015 11.18% 6.12%
Employee PERS Plan 3 varies
* For employees participating in JBM, the contribution rate was 15.30%
The city’s actual contributions to the plan were $1,120,250 for the year ended December 31, 2015.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned
officers, firefighters, and as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two
separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per
year of service calculated as a percent of final average salary (FAS) as follows:
20+ years of service – 2.0% of FAS
10-19 years of service – 1.5% of FAS
5-9 years of service – 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the
same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the
highest consecutive 24 months’ salary within the last ten years of service. Members are eligible for
retirement with five years of service at the age of 50. Other benefits include duty and non-duty disability
payments, a cost-of living adjustment (COLA), and a one-time duty-related death benefit, if found eligible
by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of five
years of eligible service. The plan was closed to new entrants on September 30, 1977.
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the
plan remains fully funded. The LEOFF Plan 1 had no required employer or employee contributions for
fiscal year 2015. Employers paid only the administrative expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as
two percent of the final average salary (FAS) per year of service (the FAS is based on the highest
consecutive 60 months). Members are eligible for retirement with a full benefit at 53 with at least five
years of service credit. Members who retire prior to the age of 53 receive reduced benefits. If the member
has at least 20 years of service and is age 50, the reduction is three percent for each y ear prior to age 53.
Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2 retirement benefits
are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-
duty disability payments, a cost-of-living allowance (based on the CPI), capped at three percent annually
and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries.
LEOFF 2 members are vested after the completion of five years of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State
Actuary to fully fund Plan 2. The employer rate included an administrative expense component set at 0.18
percent. Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2
Retirement Board. The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered
payroll) for 2015 were as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
State and local governments 5.23% 8.41%
Ports and Universities 8.59% 8.41%
The city’s actual contributions to the plan were $616,823 for the year ended December 31, 2015.
The Legislature, by means of a special funding arrangement, appropriates money from the state General
Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance
with the recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This
special funding situation is not mandated by the state constitution and could be changed by statute. For the
state fiscal year ending June 30, 2015, the state contributed $58,339,032 to LEOFF Plan 2.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial
valuation completed in 2015 with a valuation date of June 30, 2014. The actuarial assumptions used in the
valuation were based on the results of the Office of the State Actuary’s (OSA) 2007-2012 Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2014 actuarial valuation
report. The TPL was calculated as of the valuation date and rolled forward to the measurement date of June
30, 2015. Plan liabilities were rolled forward from June 30, 2014, to June 30, 2015, reflecting each plan’s
normal cost (using the entry-age cost method), assumed interest and actual benefit payments.
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Inflation: 3% total economic inflation; 3.75% salary inflation
Salary increases: In addition to the base 3.75% salary inflation assumption, salaries are also
expected to grow by promotions and longevity.
Investment rate of return: 7.5%
Mortality rates were based on the RP-2000 report’s Combined Healthy Table and Combined Disabled
Table, published by the Society of Actuaries. The OSA applied offsets to the base table and recognized
future improvements in mortality by projecting the mortality rates using 100 percent Scale BB. Mortality
rates are applied on a generational basis; meaning, each member is assumed to receive additional mortality
improvements in each future year throughout his or her lifetime.
There were minor changes in methods and assumptions since the last valuation.
The OSA updated demographic assumptions, consistent with the changes from the 2007-2012
Experience Study Report, used when valuing the PERS 1 Basic Minimum COLA.
The OSA corrected how valuation software calculates a member’s entry age under the entry age
normal actuarial cost method. Previously, the funding age was rounded, resulting in an entry age
one year higher in some cases.
For purposes of calculating the Plan 2/3 Entry Age Normal Cost contribution rates, the OSA now
uses the current blend of Plan 2 and Plan 3 salaries rather than using a long-term membership
assumption of two-thirds Plan 2 members and one-third Plan 3 members.
The OSA changed the way it applies salary limits, as described in the 2007-2012 Experience Study
Report.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.5 percent. To determine
that rate, an asset sufficiency test included an assumed 7.7 percent long-term discount rate to determine
funding liabilities for calculating future contribution rate requirements. (All plans use 7.7 percent except
LEOFF 2, which has assumed 7.5 percent). Consistent with the long-term expected rate of return, a 7.5
percent future investment rate of return on invested assets was assumed for the test. Contributions from
plan members and employers are assumed to continue being made at contractually required rates (including
PERS 2/3 employers, whose rates include a component for the PERS 1 plan liabilities). Based on these
assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.5
percent was used to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.5 percent was determined
using a building-block-method. The Washington State Investment Board (WSIB) used a best estimate of
expected future rates of return (expected returns, net of pension plan investment expense, including
inflation) to develop each major asset class. Those expected returns make up one component of WSIB’s
capital market assumptions. The WSIB uses the capital market assumptions and their target asset allocation
to simulate future investment returns at various future times. The long-term expected rate of return of 7.5
percent approximately equals the median of the simulated investment returns over a 50-year time horizon.
Estimated Rates of Return by Asset Class
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Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s
target asset allocation as of June 30, 2015, are summarized in the table below. The inflation component
used to create the table is 2.2 percent and represents the WSIB’s most recent long-term estimate of broad
economic inflation.
Asset Class
Target
Allocation
% Long-Term
Expected Real Rate of
Return Arithmetic
Fixed Income 20% 1.70%
Tangible Assets 5% 4.40%
Real Estate 15% 5.80%
Global Equity 37% 6.60%
Private Equity 23% 9.60%
100%
Sensitivity of NPL
The table below presents the city’s proportionate share of the net pension liability calculated using the
discount rate of 7.5 percent, as well as what the city’s proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1-percentage point lower (6.5 percent) or 1-percentage
point higher (8.5 percent) than the current rate.
1% Decrease
(6.5%)
Current Discount
Rate
(7.5%)
1% Increase
(8.5%)
PERS 1 $6,516,488 $5,352,340 $4,351,279
PERS 2/3 $13,158,905 $4,500,230 $(2,129,393)
LEOFF 1 $(520,362) $(813,380) $(1,063,122)
LEOFF 2 $4,177,251 $(4,171,265) $(10,453,839)
Pension Plan Fiduciary Net Position
Detailed information about the State’s pension plans’ fiduciary net position is available in the separately
issued DRS financial report.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2015, the city reported a total pension liability of $9,852,571 and a net pension (asset) of
$(4,984,645) for its proportionate share of the net pension liabilities (assets) as follows:
Liability (or Asset)
PERS 1 $ 5,352,340
PERS 2/3 $ 4,500,230
LEOFF 1 $ (813,380)
LEOFF 2 $(4,171,265)
The amount of the liability/(asset) reported above for LEOFF Plan 2 reflects a reduction for State pension
support provided to the city. The amount recognized by the city as its proportionate share of the net pension
liability/(asset), the related State support, and the total portion of the net pension liability/(asset) that was
associated with the city were as follows:
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Liability (or Asset)
LEOFF 2 – employer’s proportionate
share $(594,850)
LEOFF 2 – State’s proportionate
share of the net pension
liability/(asset) associated with the
employer $(393,315)
TOTAL $(988,165)
At June 30, the city’s proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/14
Proportionate
Share 6/30/15
Change in
Proportion
PERS 1 0.097647% 0.102321% 0.004674%
PERS 2/3 0.114462% 0.125949% 0.011487%
LEOFF 1 0.067804% 0.067488% 0.000316%
LEOFF 2 0.365709% 0.405844% 0.040135%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30
are used as the basis for determining each employer’s proportionate share of the collective pension amounts
reported by the DRS in the Schedules of Employer and Nonemployer Allocations for all plans except
LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1
from 1971 through 2000 and the retirement benefit payments in fiscal year 2015. Historical data was
obtained from a 2011 study by the Office of the State Actuary (OSA). In fiscal year 2015, the state of
Washington contributed 87.12 percent of LEOFF 1 employer contributions and all other employers
contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully funded and no further
employer contributions have been required since June 2000. If the plan becomes underfunded, funding of
the remaining liability will require new legislation. The allocation method the plan chose reflects the
projected long-term contribution effort based on historical data.
In fiscal year 2015, the state of Washington contributed 39.80 percent of LEOFF 2 employer contributions
pursuant to RCW 41.27.726 and all other employers contributed the remaining 60.20 percent of employer
contributions.
The collective net pension liability (asset) was measured as of June 30, 2015, and the actuarial valuation
date on which the total pension liability (asset) is based was as of June 30, 2014, with update procedures
used to roll forward the total pension liability to the measurement date.
Pension Expense
For the year ended December 31, 2015, the city recognized pension expense as follows:
Pension Expense
PERS 1 $130,270
PERS 2/3 $911,466
LEOFF 1 $(158,437)
LEOFF 2 $(129,290)
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TOTAL $754,009
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2015, the city reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
PERS 1 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$0 $0
Net difference between projected and actual
investment earnings on pension plan investments
$0 $292,831
Changes of assumptions $0 $0
Changes in proportion and differences between
contributions and proportionate share of
contributions
$0 $0
Contributions subsequent to the measurement date $7,839 $0
TOTAL $7,839 $292,831
PERS 2/3 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$478,376 $0
Net difference between projected and actual
investment earnings on pension plan investments
$0 $1,201,348
Changes of assumptions $7,251 $0
Changes in proportion and differences between
contributions and proportionate share of
contributions
$478,321 $0
Contributions subsequent to the measurement date $1,465,690 $0
TOTAL $2,429,638 $1,201,348
LEOFF 1 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$0 $0
Net difference between projected and actual
investment earnings on pension plan investments
$0 $137,314
Changes of assumptions $0 $0
Changes in proportion and differences between
contributions and proportionate share of
contributions
$0 $0
Contributions subsequent to the measurement date $0 $0
TOTAL $0 $137,314
LEOFF 2 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$365,254 $0
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Net difference between projected and actual
investment earnings on pension plan investments
$0 $1,263,871
Changes of assumptions $11,002 $0
Changes in proportion and differences between
contributions and proportionate share of
contributions
$0 $250,804
Contributions subsequent to the measurement date $318,598 $0
TOTAL $694,854 $1,514,675
Deferred outflows of resources related to pensions resulting from the city’s contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December
31, 2016. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Firemen's Pension
Plan Description
Plan Administration: The Firefighters'' Pension Fund is administered by the City of Pasco. The
plan is a single-employer defined benefit pension plan that provides pensions for firefighters
that were hired prior to 1970.
The municipal firefighters' pension board consists of the following five members, ex officio,
the mayor, or in a city of the first class, the mayor or a designated representative who shall be
an elected official of the city, who shall be chairperson of the board, the city comptroller or
clerk, the chairperson of finance of the city council, or if there is no chairperson of finance, the
city treasurer, and in addition, two regularly employed or retired firefighters elected by secret
ballot of those employed and retired firefighters who are subject to the jurisdiction of the board.
The members to be elected by the firefighters shall be elected annually for a two year term. The
two firefighters elected as members shall, in turn, select a third eligible member who shall serve
as an alternate in the event of an absence of one of the regularly elected members. In case a
vacancy occurs in the membership of the firefighters or retired members, the members shall in
the same manner elect a successor to serve the unexpired term. The board may select and
appoint a secretary who may, but need not be a member of the board. In case of absence or
Year Ended 12/31:PERS 1 PERS 2/3 LEOFF 1 LEOFF 2 Total
2016 (113,491) (217,464) (53,283) (381,261) (765,499)
2017 (113,491) (217,464) (53,283) (381,261) (765,499)
2018 (113,491) (217,464) (53,283) (381,261) (765,499)
2019 47,643 306,279 22,535 112,809 489,266
2020 - - - 112,814 112,814
Thereafter - - - 22,564 22,564
Net Effect on Future Pension Expense
City of Pasco, Washington 2015 Comprehensive Annual Financial
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inability of the chairperson to act, the board may select a chairperson pro tempore who shall
during such absence or inability to perform the duties and exercise the powers of the
chairperson. A majority of the members of the board shall constitute a quorum and have power
to transact business.
Plan Membership: Plan membership is limited to active members of the Firefighters' Pension
Fund (FPF) as of March 1, 1970. On that date, the Washington Law Enforcement Officers' and
Firefighters' System (LEOFF) was established. FPF is responsible for paying the pensions of
those members retired prior to March 1, 1970 and for providing the "excess benefit", the excess
of FPF formula benefits over the LEOFF benefits. Therefore, the plan is closed to new
members. At December 31, 2015, FPF membership consisted of the following:
Inactive plan members retired prior to March 1, 1970: 0
Inactive plan members retired March 1, 1970 or after: 11
Active Plan Members: 0
Benefits provided. All benefit terms are in statutes RCW 41.16, 41.18, and 41.26. FPF provides
retirement, disability, and death benefits. Each firefighter in service on March 1, 1970 receives
the greater of the benefit payable under the Washington Law Enforcement Officers' and
Firefighters' Retirement System and the benefits available under the provisions of prior law.
Where benefits under the old law exceed those under the new law for any firefighter, the excess
benefits are paid from the FPF of the city employing the member on March 1, 1970.
All members are retired and drawing benefits. Benefit terms provide for cost-of-living
adjustments to each member's retirement benefit. There are two types of increases: escalation
by salary in proportion to the current salary of the rank from which the firefighter retired, or an
increase proportionate to the increase in the Seattle-area CPI, with the change computed
annually. Regardless of the increase (or decrease) in the CPI, the benefits are increased at least
2% each year. The former applies to firefighters who retired from service after 1969, their
survivors, and to firefighters who retired for duty disability (but not their survivors) after 1969.
The latter applies to all other types of monthly benefits.
Contributions. As long as the FPF provides for benefits to covered members, the City will be
eligible to receive a share of the State's distribution of the fire insurance premium taxes. The
amount the City receives is 25% of all monies received by the State from taxes on fire insurance
premiums. Contributions can also come from taxes paid pursuant to the provisions of RCW
41.16.060. This statute require that each municipality levy up to $0.45 (only $0.225 of which
can be in excess of the property tax limit pursuant to RCW 84.52.043) per $1,000 of assessed
valuation, based on reports by a qualified actuary, to maintain the fund.
Investments
The City of Pasco does not have an investment policy for pension fund assets.
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Rate of Return. For the year ended December 31, 2015, the annual money-weighted rate of
return on pension plan investments, net of pension plan investment expense, was -0.86%. The
money-weighted rate of return expresses investment performance, net of investment expense,
adjusted for the changing amount actually invested.
FPF Net Pension Liability
The components of the City’s net pension liability at December 31, 2015 are as follows:
Total pension liability $ 1,185,733
Less: Plan fiduciary net position (2,240,970)
FPF net pension liability/(asset) $(1,055,237)
Plan fiduciary net position as a
percentage of the total pension liability 188.99%
Actuarial Assumptions: The total pension liability was determined by an actuarial valuation as
of December 31, 2015, using the following actuarial assumptions, applied to all periods
included in the measurement:
Inflation 2.50%
Salary increases 3.00%
Investment rate of return 7.10%
Healthy life mortality rates were based on the RP-2014 mortality table, total dataset, fully
generational projected with Scale MP-2014, set back one year for males and set forward one
year for females. Disabled life mortality rates were based on the RP-2014 mortality table, total
dataset, fully generational projected with Scale MP-2014, set back two years for males and
females.
The long-term expected rate of return on pension plan investments assumption was based on
the nature and mix of current and expected pension plan assets over a period of time
representative of the expected length of time between the first day of service and date of the
last benefit payment.
Discount rate. The discount rate used to measure the total pension liability was 7.10%. The
projection of cash flows used to determine the discount rate assumed City contributions were
equal to the statutorily calculated contribution of state fire insurance premiums for the next 20
years. Based on this assumption, the pension plan's fiduciary net position was projected to be
available to make all projected future benefit payment for current plan members. Therefore,
the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The net pension liability
of the City, calculated using the discount rate of 7.10%, as well as what the City's net pension
liability would be if it were calculated using a discount rate that is one-percentage-point lower,
6.10%, or one-percentage point higher, 8.10%, than the current rate, follows:
City of Pasco, Washington 2015 Comprehensive Annual Financial
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FPF net pension
liability: 1% Decrease
Current
Discount Rate 1% Increase
$ 1,311,795 $ 1,185,733 $ 1,078,484
This plan has not been audited. A copy of the plan can be obtained by request at the following
address: City of Pasco 525 N 3rd Ave., Pasco, WA 99301.
The Firemen’s pension plan financial statements follow:
The schedule of changes in net pension liability and related ratios, schedule of employer
contributions and schedule of investment returns are found immediately following the notes to
the financial statements and present multi-year trend information about whether the actuarial
value of plan assets are increasing or decreasing relative to the actuarial accrued liability for
benefits over time. The pension plan has remained fully funded over the last five years and no
additional contributions were made.
NOTE 9: OTHER POST-EMPLOYMENT BENEFITS
LEOFF 1 – Postemployment Healthcare Plan
In addition to the pension benefits outlined in Note 8, Employee Retirement Systems and Pension
Plans, the City of Pasco provides post-retirement health care benefits via a single employer defined
ASSETS ADDITIONS
Cash 145,233$ Taxes 54,506$
Investments Investments earnings
LID note 40,301 Interest 5,072
Federal agency 53,571 Dividents 173,851
Mutual funds 2,001,865 Net chang in fair value of investmens (198,612)
Total assets 2,240,970 Total addidtions 34,817
LIABILITIES DEDUCTIONS
Due to Others 1,185,733 Pension benefits 82,477
Total liabilities 1,185,733 Administrative expenses 3,398
Total deductions 85,875
Change in net assets (51,058)
NET POSITION Change in net assets
Net position - beginning 1,106,295
Held in trust for pension benefits 1,055,237$ Net position - ending 1,055,237$
Firemen's Pension Trust Fund Firemen's Pension Trust Fund
December 31, 2015 December 31, 2015
Statement of Net Position Statement of Changes in Net Position
City of Pasco, Washington 2015 Comprehensive Annual Financial
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benefit plan in accordance with state statute for retired police officers and firefighters who are
eligible under the Law Enforcement Officers’ and Firefighters’ (LEOFF1) plan retirement system.
Effective December 31, 2010, the City adopted the provisions of GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions (GASB No. 45), which requires the City to accrue other postemployment benefits
(OPEB) expense related to its postretirement healthcare plan based on a computed annual required
contribution (ARC) that includes the current period's service cost and an amount to amortize
unfunded actuarial accrued liabilities. Instead of recording expense on a "pay-as-you-go" basis,
the City, under GASB No. 45, has recorded a liability of approximately $3,3 31,084 for the
difference between the actuarially calculated ARC and the estimated contributions made since the
adoption of GASB No. 45. This liability is included in other noncurrent liabilities in the
accompanying December 31, 2015 statement of net position. The effect of GASB No. 45 for the
current fiscal year was to decrease the City's excess of revenue over expenses for the year ended
December 31, 2015 by approximately $807,624.
Plan Description: As required by the Revised Code of Washington (RCW) Chapter 41.26, the City
provides lifetime medical care for members of the Law Enforcement Officers and Firefighters
(LEOFF) retirement system hired before October 1, 1977, under a defined-benefit healthcare plan
administered by the City. The members' necessary hospital, medical, and nursing care expenses
not payable by worker's compensation, social security, insurance provided by another employer,
or other pension plan, or any other similar source, are covered.
Funding Policy: Pursuant to state statute, the City reimburses 100% of authorized LEOFF 1 retiree
healthcare costs. The City pays a monthly insurance premium to cover each retiree under its
medical insurance program as well as any remaining eligible out-of-pocket expenses. Retirees are
not required to contribute to the plan.
For the fiscal year ended December 31, 2015, the City contributed $638,987 to the Health Plan.
The City's contribution was entirely to fund 'pay-as-you-go' costs under the Health Plan and not to
prefund benefits. There were no retiree contributions.
Annual OPEB Cost and Net OPEB Obligation: The basis for the City's annual OPEB cost
(expense) is the ARC. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover the normal cost each year and amortize any unfunded actuarial liabilities. The
following displays the components of the City's annual OPEB cost, the estimated amount
contributed to the Health Plan, and changes in the City's net OPEB obligation to the Health Plan
for the year ended December 31, 2015:
Normal cost - Entry Age Normal Method $ 31,718
Amortization of unfunded actuarial accrued liability (UAAL) 1,547,520
ARC 1,579,238
Interest on net OPEB obligation 69,395
Adjustment to annual required contribution (202,022)
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Annual OPEB cost (expense) 1,446,611
Contributions made (638,987)
Increase in net OPEB obligation 807,624
Net OPEB obligation - beginning of year 2,523,460
Net OPEB obligation - end of year $ 3,331,084
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Health Plan,
and the net OPEB obligation follow:
Fiscal Year Ended
Annual
OPEB Cost
Employer
Contributions
Percentage
of Annual
OPEB Cost
Contributed
Net OPEB
Obligation
12/31/2013 $ 800,733 $ 514,297 64.23% $1,981,585
12/31/2014 $ 1,191,159 $ 649,284 54.51% $2,523,460
12/31/2015 $ 1,446,611 $ 638,987 44.17% $3,331,084
Funded Status and Funding Progress: The funded status of the Health Plan as of December 31,
2015,
Actuarial accrued liability (AAL) - Entry Age Normal $19,361,802
Actuarial value of plan assets -
Unfunded actuarial accrued liability (UAAL) $19,361,802
Funded ratio (actuarial value of plan assets ÷ AAL) 0.00%
Covered payroll $ 218,161
UAAL as a percentage of covered payroll 8875%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trend. Actuarially
determined amounts are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. GASB 45 requires that the schedule of
funding progress, presented as required additional information following the notes to the financial
statements, presents multi-year trend information that shows whether the actuarial value of Health
Plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
Actuarial Methods and Assumptions: The basis of projections of benefits for financial reporting
purposes is the substantive plan (the Health Plan as understood by the City and members of the
Health Plan) and includes the types of benefits provided at the time of each valuation and the
historical pattern of sharing of benefit costs between the City and members of the Health Plan to
that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
City of Pasco, Washington 2015 Comprehensive Annual Financial
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The January 1, 2015 valuation used the entry age normal actuarial cost method. The actuarial
assumptions included a 2.75% investment rate of return (net of administrative expenses) and an
initial annual healthcare cost trend rate of 8.5% for pre-Medicare expenses, to an ultimate rate of
3.84% after 61 years. The Medicare trend assumption is 5.5%, to an ultimate rate of 3.84% after
61 years. The trend for the Excise Tax threshold is 0% until 2020, when a trend rate of 4.24% is
used. The trend for all future years after that year is 3.24%. All trend rates include a 3.0% inflation
assumption. The UAAL is amortized as a level dollar amount on an open basis over 15 years.
The City of Pasco has a total of thirty-three LEOFF 1 members in this plan. Thirty-one of those
members are retired and two are still active employees.
Fire Pension – Postemployment Healthcare Plan
Effective December 31, 2010, the City adopted the provisions of GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions (GASB No. 45), which requires the City to accrue other postemployment benefits
(OPEB) expense related to its postretirement healthcare plan based on a computed annual required
contribution (ARC) that includes the current period's service cost and an amount to amortize
unfunded actuarial accrued liabilities. The City, under GASB No. 45, has recorded a liability of
approximately $0 for the difference between the actuarially calculated ARC and the estimated
contributions made since the adoption of GASB No. 45.
Plan Description: As required by the Revised Code of Washington (RCW) Chapter 41.26, the City
provides lifetime medical care for members of the Law Enforcement Officers and Firefighters
(LEOFF) retirement system hired before October 1, 1977 under a single employer, defined benefit
healthcare plan administered by the City. The members' necessary hospital, medical, and nursing
care expenses not payable by worker's compensation, social security, insurance provided by
another employer, or other pension plan, or any other similar source are covered. Most medical
coverage for eligible retirees is provided by the City's employee medical insurance program. Under
authorization of the LEOFF Disability Board, direct payment is made for other retiree medical
expenses not covered by standard medical plan benefit provisions. Members of the Fire Pension
plan purchase medical insurance through the City's medical insurance program.
Funding Policy: Funding for LEOFF retiree healthcare costs is provided entirely by the City as
required by the RCW. The City's funding policy is based upon pay-as-you-go financing
requirements for any requirements in excess of amounts previously set aside in the Fire Pension
OPEB trust fund.
For the fiscal year ended December 31, 2015, the City contributed $0 to the Health Plan. There
were no retiree contributions.
Annual OPEB Cost and Net OPEB Obligation: The basis for the City's annual OPEB cost (expense)
is the ARC. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed ten years. The following displays the components of the City's
annual OPEB cost, the estimated amount contributed to the Health Plan, and changes in the City's
net OPEB obligation to the Health Plan for the year ended December 31, 2015:
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Normal cost - Entry Age Normal Method $ -
Amortization of unfunded actuarial accrued liability
(UAAL) -
ARC -
Interest on net OPEB obligation -
Adjustment to annual required contribution -
Annual OPEB cost (expense) -
Contributions made -
Increase in net OPEB obligation -
Net OPEB obligation - beginning of year -
Net OPEB obligation - end of year $ -
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Health Plan,
and the net OPEB obligation follow:
Fiscal Year
Ended
Annual
OPEB Cost
Employer
Contributions
Percentage
of Annual
OPEB Cost
Contributed
Net OPEB
Obligation
12/31/2013 $ - $ - n/a $ -
12/31/2014 - - n/a -
12/31/2015 - - n/a -
Funded Status and Funding Progress: The funded status of the Health Plan as of December 31,
2015,
Actuarial accrued liability (AAL) - Entry Age Normal $ 1,420,555
Actuarial value of plan assets 2,538,093
Unfunded actuarial accrued liability (UAAL) $(1,117,538)
Funded ratio (actuarial value of plan assets ÷ AAL) 178.70%
Covered payroll n/a
UAAL as a percentage of covered payroll n/a
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trend. Actuarially determined
amounts are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future. GASB 45 requires that the schedule of funding progress,
presented as required additional information following the notes to the financial statements,
presents multi-year trend information that shows whether the actuarial value of Health Plan assets
is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Actuarial Methods and Assumptions: The basis of projections of benefits for financial reporting
purposes is the substantive plan (the Health Plan as understood by the City and members of the
Health Plan) and includes the types of benefits provided at the time of each valuation and the
historical pattern of sharing of benefit costs between the City and members of the Health Plan to
that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
The January 1, 2015 valuation used the entry age normal actuarial cost method. The actuarial
assumptions included a 7.80% investment rate of return (net of administrative expenses) The
Medicare trend assumption is 5.5%, to an ultimate rate of 3.8% after 61 years. The trend for the
Excise Tax threshold is 0% until 2020, when a trend rate of 0.00% is used. The trend for all future
years after that year is 3.24%. All trend rates include a 3.0% inflation assumption.
Following are the financial statements for the Firemen’s Other Post Employment Benefit Trust
Fund:
NOTE 10: CONTINGENCIES AND LITIGATION
The City has recorded in its financial statements all material liabilities, including applicable
estimates for situations that are not yet resolved but where, based on available information,
management believes it is probable that the City will have to make payment. In the opinio n of
management, the City's insurance policies and self-insurance reserves are adequate to pay all
material known or pending claims. As discussed in Note 3. F, Long-term Debt, the City is
contingently liable for repayment of debt.
The City participates in a number of Federal and State assisted programs. These grants are subject
to audit by the grantor or representative. Such audits could result in requests for reimbursement to
ASSETS ADDITIONS
Cash 14$ Taxes -$
Investments earnings
Interest 21
Investments Dividents 152,269
Mutual funds 2,562,759 Net chang in fair value of investmens (156,544)
Total assets 2,562,773 Total addidtions (4,254)
LIABILITIES DEDUCTIONS
Due to Others 24,680 Pension benefits 105,048
Total liabilities 24,680 Administrative expenses 2,974
Total deductions 108,022
Change in net assets (112,276)
NET POSITION
Net position - beginning 2,650,369
Held in trust for OPEB benefits 2,538,093$ Net position - ending 2,538,093$
Firemen's Other Post-Employment Benefits Trust Fund Firemen's Other Post Empmloyment Benefit Trust Plan
December 31, 2015 For the Year Ended December 31, 2015
Statement of Net Position Statement of Changes in Net Position
City of Pasco, Washington 2015 Comprehensive Annual Financial
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grantor agencies for expenditures disallowed under the terms of the grants. However, City
management believes that such disallowances, if any, will be immaterial.
Currently, there is an underground fire in a non-municipal Pasco landfill which closed in
1998. The Washington State Department of Ecology (DOE) is proposing to issue an enforcement
order to parties collectively known as Potentially Liable Persons (PLPs). The City entered into an
“Institutional Control” agreement with the DOE to regulate development and provide for the
conversion of private water wells located down-plume from the site to be abandoned in favor of
using the City’s municipal water system. It is the City’s understanding that, because of its entering
into this agreement, the DOE is excluding the City from being designated as a PLP.
NOTE 11: PRIOR PERIOD CORRECTIONS AND CHANGES IN ACCOUNTING
The City of Pasco adopted GASB 68 in 2015 which mandated changes in pension accounting and
financial statement presentation. 2015 beginning balances were restated to include the addition of
net pension assets, liabilities and related pension deferred inflows and outflows and their related
effects on Net Position. These changes occurred in the government wide Statement of Net
Position as well as the fund level Statements of Net Position for the utility fund and some of the
internal service funds. Additionally, there were changes to correct the beginning balances of
compensated absences (added $538,662 relating to Governmental Type Activities and $79,661
relating to Business Type Activities). The net changes in beginning Net Position relating to the
effects of corrections and changes are as follows:
Governmental Activities Net Position $ (4,893,725)
Business Activities Net Position $ (1,756,353)
Water/Sewer Utility Net Position $ (1,756,353)
Firemen’s Pension Trust Fund $ (1,220,026)
Additionally the Special Lodging fund beginning net position was restated to add $16,650 for
correction of prior year error.
NOTE 12: SUBSEQUENT EVENT
In February 2016 the City issued a $3,960 LTGO bond to refinance the existing water/sewer SRF
loan.
NOTE 13: LEGAL COMPLIANCE
The Street Fund, a nonmajor special revenue fund received less revenue than budgeted and
ended the year with a negative fund balance of $(20,362).
There were three nonmajor special revenues funds which exceeded their final budget
appropriation by the amounts as follows:
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Special Lodging Assess Fund $8,120
Revolving Abatement Fund $8,846
TRAC Development & Operating Fund $6,366
REQUIRED SUPPLEMENTARY INFORMATION
City of Pasco, Washington 2015 Comprehensive Annual Financial
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The following is a schedule of contributions from the employer and other contributing entities for the
Firemen's Pension Fund:
Annual
Fiscal Actual Fire Actual Required Percentage
Year Insurance Employer Total Contribution of ARC
Ending Premiums Contributions Contributions (ARC)Contributed
12/31/2015 - - - - N/A%
12/31/2014 - - - - N/A%
12/31/2013 - - - - N/A%
Unfunded UAAL As A
Actuarial Actuarial Actuarial Percentage
Asset Accrued Accrued Funded Covered of Covered
Valuation Date Value Liabilities Liabilities (UAAL)Ratio Payroll Payroll
December 31, 2015 2,538 1,421 (1,117) 179%N/A N/A %
December 31, 2014 2,650 1,988 (662) 133%N/A N/A %
December 31, 2013 2,517 1,806 (711) 139%N/A N/A %
Required Supplementary Information
Firemen's OPEB Fund
Schedule of Funding Progress for the Firemen's OPEB Fund (rounded to thousands)
The following is a schedule of contributions from the employer and other contributing entities for the
Other LEOFF 1 :
Annual
Fiscal Actual Fire Actual Required Percentage
Year Insurance Employer Total Contribution of ARC
Ending Premiums Contributions Contributions (ARC)Contributed
12/31/2015 - 638,987 638,987 1,579,238 40%
12/31/2014 - 649,284 649,284 1,290,122 50%
12/31/2013 - 514,297 514,297 934,928 55%
Unfunded UAAL As A
Actuarial Actuarial Actuarial Percentage
Asset Accrued Accrued Funded Covered of Covered
Valuation Date Value Liabilities Liabilities (UAAL)Ratio Payroll Payroll
December 31, 2015 19,362$ 19,362$ 0%218 8882%
December 31, 2014 - 14,081 14,081 0%N/A N/A %
December 31, 2013 - 9,737 9,737 0%N/A N/A %
Required Supplementary Information
Other LEOFF 1 OPEB
Schedule of Funding Progress for the Other LEOFF 1 OPEB Fund (rounded to thousands)
City of Pasco, Washington 2015 Comprehensive Annual Financial
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PERS 1 PLAN 2014 2015
Employer's proportion of the net
pension liability 0.097647%0.102321%
Employer's proportionate share of the
net pension liability 4,919,014$ 5,352,340$
Employer's covered employee payroll 342,721$ 163,430$
Employer's proportionate share of the
net pension liability as a percentage of
covered employee payroll 1435.28%3275.00%
Plan fiduciary net position as a
percentage of the total pension
liability 61.19%59.10%
Schedule of Proportionate Share of the Net Pension Liability
Last 2 Fiscal Years*
As of June 30, 2015
PERS 2&3 PLAN 2014 2015
Employer's proportion of the net
pension liability 0.114462%0.125949%
Employer's proportionate share of the
net pension liability 2,313,690$ 4,500,230$
Employer's covered employee payroll 10,474,619$ 11,212,390$
Employer's proportionate share of the
net pension liability as a percentage of
covered employee payroll 22.09%40.14%
Plan fiduciary net position as a
percentage of the total pension
liability 93.29%89.20%
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2015
Last 2 Fiscal Years*
City of Pasco, Washington 2015 Comprehensive Annual Financial
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LEOFF 1 PLAN 2014 2015
Employer's proportion of the net
pension asset 0.067804%0.067488%
Employer's proportionate share of the
net pension liability/ (asset)(822,321)$ (813,380)$
Employer's covered employee payroll 219,984$ 207,267$
Employer's proportionate share of the
net pension asset as a percentage of
covered employee payroll 0.00%0.00%
Plan fiduciary net position as a
percentage of the total pension
liability 126.91%127.36%
Notes to Schedule:
This is a closed plan and is fully funded. Therefore there is no employer
covered payroll, no employer or employee contributions required.
Schedule of Proportionate Share of the Net Pension Asset
As of June 30, 2015
Last 2 Fiscal Years*
LEOFF 2 PLAN 2014 2015
Employer's proportion of the net pension asset 0.365709%0.405844%
Employer's proportionate share of the net
pension liability/ (asset)(4,853,116)$ (4,171,265)$
State's proportionate share of the net pension
(asset) associated with the employer (3,193,777)$ (2,758,046)$
TOTAL (8,046,893)$ (6,929,311)$
Employer's covered employee payroll 10,497,629$ 12,154,638$
Employer's proportionate share of the net
pension asset as a percentage of covered
employee payroll -76.65%-57.01%
Plan fiduciary net position as a percentage of
the total pension asset 116.75%111.67%
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2015
Last 2 Fiscal Years*
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PERS 1 PLAN 2014 2015
Statutorily or contractually required
contributions 31,484$ 16,252$
Contributions made in relation to the
statutorily or contractually required
contributions (31,484)$ (16,252)$
Contribution deficiency (excess)- -
Covered employer payroll 342,721$ 163,430$
Contributions as a percentage of
covered employee payroll 9.19%9.94%
Schedule of Employer Contributions
As of December 31, 2015
Last 2 Fiscal Years
PERS 2 PLAN 2014 2015
Statutorily or contractually required
contributions 172,109$ 244,701$
Contributions made in relation to the
statutorily or contractually required
contributions (172,109)$ (244,701)$
Contribution deficiency (excess)- -
Covered employer payroll 10,474,619$ 11,212,390$
Contributions as a percentage of
covered employee payroll 1.64%2.18%
Schedule of Employer Contributions
As of December 31, 2015
Last 2 Fiscal Years
City of Pasco, Washington 2015 Comprehensive Annual Financial
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LEOFF 1 PLAN 2014 2015
Statutorily or contractually required
contributions -$ -$
Contributions made in relation to the
statutorily or contractually required
contributions -$ -$
Contribution deficiency (excess)- -
Covered employer payroll -$ -$
Contributions as a percentage of
covered employee payroll N/A N/A
Notes to Schedule:
Schedule of Employer Contributions
As of December 31, 2015
Last 2 Fiscal Years
This is a closed plan and is fully funded. Therefore there is no employer
covered payroll, no employer or employee contributions required.
City of Pasco, Washington 2015 Comprehensive Annual Financial
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COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to accoutn for specific revenues that are legally restricted to expenditures for
particular purposes.
Debt Service Funds
Debt service fundsare used to account for the accumulation of resources for and the payment of general long -term
debt principal and interest.
Permanent Funds
LEOFF 2 PLAN 2014 2015
Statutorily or contractually required
contributions 549,396$ 635,688$
Contributions made in relation to the
statutorily or contractually required
contributions (549,396)$ (635,688)$
Contribution deficiency (excess)- -
Covered employer payroll 10,497,629$ 12,154,638$
Contributions as a percentage of
covered employee payroll 5.23%5.23%
Schedule of Employer Contributions
As of December 31, 2015
Last 2 Fiscal Years
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting government’s programs.
Major Governmental Fund
Capital Project Fund
Capital project funds are used to account for the acquistion and construction of major capital facilities other than
those financed by proprietary funds and trust funds.
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Total Total Cemetery
Nonmajor Nonmajor Perpetual Care Total
Other Special Debt Nonmajor Other
Revenue Service Permanent Governmental
ASSETS
Cash & cash equivalents 14,743,701$ -$ 12,021$ 14,755,722$
Restricted cash:
Customer deposits 43,269 - 43,269
Cemetery endowment - - 455,173 455,173
Debt service - 765,848 765,848
Investments 1,966,274 - 1,966,274
Restricted investment - 692,935 692,935
Receivables (net of allowances):
Taxes 502,447 5,433 507,880
Customers 495,262 - 504 495,766
Interfund loans 739,825 - 739,825
Grants 297,912 - 297,912
Special assessments & loans 153,355 553,610 706,965
Due from other governments 100,000 - 100,000
Total assets 19,042,045 2,017,826 467,698 21,527,569
LIABILITIES
Accounts payable 503,732 - 503,732
Interfund loans payable 1,302,308 474,628 1,776,936
Due to other funds 390,780 - 390,780
Deposits payable from restricted assets 43,269 - 43,269
Total liabilities 2,240,089 474,628 - 2,714,717
DEFERRED INFLOWS
Unavailable revenues 202,810 559,043 761,853
FUND BALANCES
Nonspendable
Cemetery permanent fund - - 467,698 467,698
Restricted
Street and boulevard 6,203,814 - - 6,203,814
Litter & housing abatement 354,419 - - 354,419
Park development 2,134,710 - - 2,134,710
Capital improvements 4,802,103 - - 4,802,103
Economic development 107,573 - - 107,573
Debt guarantee - 1,364,045 - 1,364,045
Committed -
Special revenue funds 3,016,889 - 3,016,889
Unassigned (20,362) (379,890) (400,252)
Total fund balances 16,599,146 984,155 467,698 18,050,999
Total liabilities, deferred inflows of
and fund balances 19,042,045$ 2,017,826$ 467,698$ 21,527,569$
Combining Balance Sheet
Nonmajor Other Governmental Funds
December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Total Total Cemetery
Nonmajor Nonmajor Perpetual Care Total
Other Special Debt Nonmajor Other
Revenue Service Permanent Governmental
REVENUES
Taxes 3,273,762$ 124,449$ -$ 3,398,211$
Licenses and permits 1,687,312 1,687,312
Intergovernmental revenue 3,300,739 3,300,739
Charges for services 5,790,048 12,522 5,802,570
Fines and forfeitures 178,563 178,563
Miscellaneous revenue 1,633,707 145,040 623 1,779,370
Total revenues 15,864,131 269,489 13,145 16,146,765
EXPENDITURES
Current:
Public safety 3,947,482 3,947,482
Transportation 3,665,518 - 3,665,518
Natural and economic environment 3,207,342 3,207,342
Culture and recreation 2,697,716 2,697,716
Capital outlay:
General government - - -
Public safety 52,853 - 52,853
Transportation 9,132 - 9,132
Debt service:
Principal - 108,019 108,019
Interest 48,161 60,147 108,308
Total expenditures 13,628,204 168,166 - 13,796,370
Excess of revenues
over expenditures 2,235,927 101,323 13,145 2,350,395
OTHER FINANCING SOURCES (USES)
Sale of assets 700,058 - - 700,058
Transfers in 1,323,049 1,323,049
Transfers out (3,022,644) - (3,022,644)
Total other financing sources (uses)(999,537) - - (999,537)
Net change in fund balances 1,236,390 101,323 13,145 1,350,858
Fund balances - beginning (Adjusted - See Note 11)15,362,756 882,832 454,553 16,700,141
Fund balances - ending 16,599,146$ 984,155$ 467,698$ 18,050,999$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Other Governmental Funds
For the Year Ended December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial
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94
Community
City Arterial I-182 Traffic Street Development
Street Street Impact Overlay Block Grant
ASSETS
Cash & cash equivalents 33$ 1,218,569$ 912,296$ 2,004,407$ 69,032$
Restricted cash:
Customer deposits - -
Cemetery endowment
Debt service
Investments -
Restricted investment
Receivables (net of allowances):
Taxes 191,540 78,496 138,392 -
Customers 1,349 7,417
Interfund loans -
Grants 65,663 230,382
Special assessments & loans 153,355
Due from other governments -
Total assets 258,585 1,297,065 912,296 2,142,799 460,186
LIABILITIES
Accounts payable 114,167 26,412 5,965
Interfund loans payable -
Due to other funds 164,780 226,000
Deposits payable from restricted assets -
Total liabilities 278,947 - - 26,412 231,965
DEFERRED INFLOWS
Unavailable revenues 153,355
FUND BALANCES
Nonspendable
Cemetery permanent fund
Restricted
Street and boulevard 1,286,902 912,296 2,116,387
Litter & housing abatement
Park development
Capital improvements
Economic development 74,866
Debt guarantee
Committed
Special revenue funds 10,163
Unassigned (20,362)
Total fund balances (20,362) 1,297,065 912,296 2,116,387 74,866
Total liabilities, deferred inflows of
and fund balances 258,585$ 1,297,065$ 912,296$ 2,142,799$ 460,186$
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial
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95
M.L. King
Community Ambulance City View Athletic Golf Senior Multi-Modal
Center Services Cemetery Blvd. Perpetual Program Course Center Facility
72,022$ 214,352$ 63,049$ 1,148,404$ 212,995$ 211,061$ 26,913$ 134,770$
37,543 100 5,626
365,606 3,060 2,000 9,688
739,825
1,867
72,022 579,958 66,109 1,888,229 212,995 250,604 28,880 150,084
2,288 59,831 2,351 21,836 15,096 4,097 5,425
37,543 100 5,626
2,288 59,831 2,351 - 21,836 52,639 4,197 11,051
42,031 7,424
1,888,229
69,734 520,127 21,727 191,159 190,541 24,683 139,033
69,734 520,127 21,727 1,888,229 191,159 190,541 24,683 139,033
72,022$ 579,958$ 66,109$ 1,888,229$ 212,995$ 250,604$ 28,880$ 150,084$
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Rivershore Trail Special
School & Marina Lodging Litter Revolving
Impact Fees Maintenance Assessment Abatement Abatement
ASSETS
Cash & cash equivalents 167,336$ 30,548$ 1,254$ 4,377$ 245,200$
Restricted cash:
Customer deposits
Cemetery endowment
Debt service
Investments
Restricted investment
Receivables (net of allowances):
Taxes 31,453
Customers 9 1,875 104,258
Interfund loans
Grants
Special assessments & loans
Due from other governments
Total assets 167,336 30,557 32,707 6,252 349,458
LIABILITIES
Accounts payable 148,276 548 944 347
Interfund loans payable
Due to other funds
Deposits payable from restricted assets
Total liabilities 148,276 548 - 944 347
DEFERRED INFLOWS
Unavailable revenues
FUND BALANCES
Nonspendable
Cemetery permanent fund
Restricted
Street and boulevard
Litter & housing abatement 5,308 349,111
Park development
Capital improvements
Economic development 32,707
Debt guarantee
Committed
Special revenue funds 19,060 30,009
Unassigned
Total fund balances 19,060 30,009 32,707 5,308 349,111
Total liabilities, deferred inflows of
and fund balances 167,336$ 30,557$ 32,707$ 6,252$ 349,458$
Combining Balance Sheet
Nonmajor Special Revenue Funds (continued)
December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Nonmajor Special Revenue Funds
Total
T.R.A.C.Stadium/Nonmajor
Development Park Capital Economic Convention Special
& Operating Development Improvements Development Center Revenue
75,921$ 2,134,710$ 2,835,829$ 2,474,322$ 486,301$ 14,743,701$
43,269
-
-
1,966,274 1,966,274
31,283 31,283 502,447
495,262
739,825
297,912
153,355
100,000 100,000
207,204 2,134,710 4,802,103 2,474,322 517,584 19,042,045
94,704 1,445 503,732
942,543 359,765 1,302,308
390,780
43,269
- - - 1,037,247 361,210 2,240,089
202,810
6,203,814
354,419
2,134,710 2,134,710
4,802,103 4,802,103
107,573
-
207,204 1,437,075 156,374 3,016,889
(20,362)
207,204 2,134,710 4,802,103 1,437,075 156,374 16,599,146
207,204$ 2,134,710$ 4,802,103$ 2,474,322$ 517,584$ 19,042,045$
City of Pasco, Washington 2015 Comprehensive Annual Financial
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98
Community
City Arterial I-182 Traffic Street Development
Street Street Impact Overlay Block Grant
REVENUES
Taxes 241,311$ 967,297$ -$
Licenses and permits 279,112 -
Intergovernmental revenue 1,085,251 482,485 1,430,960
Charges for services 5,898 212,777 -
Fines and forfeitures -
Miscellaneous revenue 9,562 1,911 1,611 3,412 -
Total revenues 1,615,236 490,294 214,388 970,709 1,430,960
EXPENDITURES
Current:
Public safety -
Transportation 2,352,343 1,239,768 -
Natural and economic environment 657,217
Culture and recreation -
Capital outlay:-
General government -
Public safety -
Transportation 9,132 -
Debt service:-
Principal -
Interest -
Total expenditures 2,361,475 - - 1,239,768 657,217
Excess of revenues
over (under) expenditures (746,239) 490,294 214,388 (269,059) 773,743
OTHER FINANCING SOURCES (USES)
Sale of assets -
Transfers in 223,146 160,000 114,903
Transfers out (694,257) (480,523) (424,000) (841,809)
Total other financing sources (uses)223,146 (694,257) (480,523) (264,000) (726,906)
Net change in fund balances (523,093) (203,963) (266,135) (533,059) 46,837
Fund balances - beginning 502,731 1,501,028 1,178,431 2,649,446 28,029
Fund balances - ending (20,362)$ 1,297,065$ 912,296$ 2,116,387$ 74,866$
Nonmajor Special Revenue Funds
For the Year Ended December 31, 2015
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
City of Pasco, Washington 2015 Comprehensive Annual Financial
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M.L. King
Community Ambulance City View Boulevard Athletic Golf Senior Multi-Modal
Center Services Cemetery Perpetual Program Course Center Facility
REVENUES
Taxes
Licenses and permits
Intergovernmental revenue 1,341 15,816
Charges for services 5,535 3,454,222 184,942 98,675 135,600 1,432,385
Fines and forfeitures
Miscellaneous revenue 38,821 2,376 150 30,109 2,065 326,583 43,445 73,589
Total revenues 44,356 3,457,939 185,092 128,784 137,665 1,758,968 59,261 73,589
EXPENDITURES
Current:
Public safety 3,947,482
Transportation 58,761
Natural and economic environment 264,580
Culture and recreation 147,037 103,739 1,605,443 301,879
Capital outlay:
General government
Public safety 52,853
Transportation
Debt service:
Principal
Interest
Total expenditures 147,037 4,000,335 264,580 - 103,739 1,605,443 301,879 58,761
Excess of revenues
over (under) expenditures(102,681) (542,396) (79,488) 128,784 33,926 153,525 (242,618) 14,828
OTHER FINANCING SOURCES (USES)
Sale of Asset
Transfers in 120,000 420,000 30,000 250,000
Transfers out (70,000)
Total other financing sources (uses)120,000 420,000 30,000 (70,000) - - 250,000 -
Net change in fund balances 17,319 (122,396) (49,488) 58,784 33,926 153,525 7,382 14,828
Fund balances - beginning 52,415 642,523 71,215 1,829,445 157,233 37,016 17,301 124,205
Fund balances - ending 69,734$ 520,127$ 21,727$ 1,888,229$ 191,159$ 190,541$ 24,683$ 139,033$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Other Governmental Funds
For the Year Ended December 31, 2015
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Rivershore Trail Special
School & Marina Lodging Litter Revolving
Impact Fees Maintenance Assessment Abatement Abatement
REVENUES
Taxes 250,665$
Licenses and permits 1,408,200
Intergovernmental revenue
Charges for services 5,000 21,258
Fines and forfeitures 178,563
Miscellaneous revenue 66 16,888 - 7,502 2,457
Total revenues 1,408,266 16,888 250,665 12,502 202,278
EXPENDITURES
Current:
Public safety
Transportation 14,646
Natural and economic environment 1,404,154 140,080
Culture and recreation 12,319 255,430
Capital outlay:
General government
Public safety
Transportation
Debt service:
Principal
Interest
Total expenditures 1,404,154 12,319 255,430 14,646 140,080
Excess of revenues
over (under) expenditures 4,112 4,569 (4,765) (2,144) 62,198
OTHER FINANCING SOURCES (USES)
Sale of assets
Transfers in 5,000
Transfers out (80,000)
Total other financing sources (uses)- - - 5,000 (80,000)
Net change in fund balances 4,112 4,569 (4,765) 2,856 (17,802)
Fund balances - beginning (Adjusted See Note )14,948 25,440 37,472 2,452 366,913
Fund balances - ending 19,060$ 30,009$ 32,707$ 5,308$ 349,111$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special Revenue Funds (continued)
For the Year Ended December 31, 2015
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Total
T.R.A.C.Nonmajor
Development Park Capital Economic Stadium/Special
& Operating Development Improvement Development Conv. Center Revenue
REVENUES
Taxes 260,493$ 1,293,503$ 260,493$ 3,273,762$
Licenses and permits 1,687,312
Intergovernmental revenue 284,886 3,300,739
Charges for services 233,756 5,790,048
Fines and forfeitures 178,563
Miscellaneous revenue 32 2,860 26,791 1,024,953 18,524 1,633,707
Total revenues 260,525 236,616 1,320,294 1,309,839 279,017 15,864,131
EXPENDITURES
Current:
Public safety 3,947,482
Transportation 3,665,518
Natural and economic environment 606,485 134,826 3,207,342
Culture and recreation 256,366 15,503 2,697,716
Capital outlay:
General government -
Public safety 52,853
Transportation 9,132
Debt service:
Principal -
Interest 33,978 14,183 48,161
Total expenditures 256,366 - - 640,463 164,512 13,628,204
Excess of revenues
over (under) expenditures 4,159 236,616 1,320,294 669,376 114,505 2,235,927
OTHER FINANCING SOURCES (USES)
Sale of assets 700,058 700,058
Transfers in 1,323,049
Transfers out (96,298) (250,708) (85,049) (3,022,644)
Total other financing sources (uses)- (96,298) (250,708) 615,009 - (999,537)
Net change in fund balances 4,159 140,318 1,069,586 1,284,385 114,505 1,236,390
Fund balances - beginning 203,045 1,994,392 3,732,517 152,690 41,869 15,362,756
Fund balances - ending 207,204$ 2,134,710$ 4,802,103$ 1,437,075$ 156,374$ 16,599,146$
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Total
1999 Library/2002 Local Improv.Nonmajor
LID LID Fire Station Unl. Tax G.O.District Debt
Loans Bonds Bonds Refunding Bonds Guaranty Service
ASSETS
Debt service 94,738$ 95,821$ 95,067$ 250,936$ 229,286$ 765,848
Receivables (net of allowances):-
Taxes - 4,103 1,330 5,433
Special assessments & loans 440,912 112,698 553,610
Total assets 535,650 208,519 99,170 252,266 922,221 2,017,826
LIABILITIES
Interfund loans payable 474,628 474,628
Total liabilities 474,628 - - - - 474,628
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 440,912 112,698 4,103 1,330 559,043
FUND BALANCES
Restricted
Debt guarantee - 95,821 95,067 250,936 922,221 1,364,045
Special revenue funds - -
Unassigned (379,890) (379,890)
Total fund balances (379,890) 95,821 95,067 250,936 922,221 984,155
-$
Total liabilities, deferrend inflows of
resources and fund balances 535,650$ 208,519$ 99,170$ 252,266$ 922,221$ 2,017,826$
Combining Balance Sheet
Nonmajor Debt Service Funds
December 31, 2015
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Total
1999 Library/2002 Local Improv.Nonmajor
LID LID Fire Station Unl. Tax G.O.District Debt
Loans Bonds Bonds Refunding Bonds Guaranty Service
REVENUES
Taxes -$ 121,129$ 3,320$ 124,449$
Miscellaneous revenue 108,873 39,680 80 147 (3,740) 145,040
Total revenues 108,873 39,680 121,209 3,467 (3,740) 269,489
EXPENDITURES
Debt service:
Principal 8,019 100,000 108,019
Interest 24,172 8,225 27,750 60,147
Total expenditures 32,191 8,225 127,750 - - 168,166
Excess of revenues
over (under) expenditures 76,682 31,455 (6,541) 3,467 (3,740) 101,323
Net change in fund balances 76,682 31,455 (6,541) 3,467 (3,740) 101,323
Fund balances - beginning (456,572) 64,366 101,608 247,469 925,961 882,832
Fund balances - ending (379,890)$ 95,821$ 95,067$ 250,936$ 922,221$ 984,155$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Debt Service Funds
For the Year Ended December 31, 2015
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Original Final Variance to
Budget Budget Actual Final Budget
REVENUES
Intergovernmental revenue 4,880,251$ 2,147,740$ 413,157$ (1,734,583)$
Miscellaneous revenue 140,000 140,000 (140,000)
Total revenues 5,020,251 2,287,740 413,157 (1,874,583)
EXPENDITURES
Current:
General government 2,428 88,837 (86,409)
Public safety 1,331,457 46,466 1,284,991
Transportation 76 (76)
Capital outlay:
General government 416,786 416,786 85,049 331,737
Public safety 5,374,786 5,269,786 3,213,502 2,056,284
Transportation 6,473,519 3,801,932 2,194,187 1,607,745
Culture and recreation 1,410,000 1,826,938 471,295 1,355,643
Total expenditures 13,675,091 12,649,327 6,099,412 6,549,915
Excess of revenues over (under) expenditures (8,654,840) (10,361,587) (5,686,255) 4,675,332
OTHER FINANCING SOURCES
Transfers in 10,926,491 13,753,796 5,891,327 7,862,469
Total other financing sources 10,926,491 13,753,796 5,891,327 7,862,469
Net change in fund balances 2,271,651 3,392,209 205,072 (3,187,137)
Fund balances - beginning 33,361 33,361 33,361 -
Fund balances - ending 2,305,012$ 3,425,570$ 238,433$ (3,187,137)$
CONSTRUCTION FUND
Statement of Revenues, Expenditures, and Changes in Fund Balances-Budget to Actual
Construction Fund - Major Fund
For the Year Ended December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial
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Final Variance to Final Variance to
Budget Actual Final Budget Budget Actual Final Budget
Special Revenue Funds
City Street Fund 2,622,412$ 1,838,382$ 1,995,397.00 (157,015) (784,030)$ 3,102,073$ 2,361,475$ (740,598)$
Arterial Street Fund 502,850 490,294 568,791.00 (78,497) (12,556) 873,031 694,257 (178,774)
I-82 Traffic Impact Fund 235,000 214,388 214,388.00 - (20,612) 601,325 480,523 (120,802)
Street Overlay Fund 1,411,000 1,130,709 1,130,710.00 (1) (280,291) 1,906,000 1,663,768 (242,232)
Community Dev Block Grant Fund 2,357,474 1,545,863 1,545,863.00 - (811,611) 1,885,623 1,499,026 (386,597)
ML King Community Center Fund 158,920 164,356 164,356.00 - 5,436 164,490 147,037 (17,453)
Ambulance Services Fund 3,848,722 3,877,939 3,877,939.00 - 29,217 4,244,337 4,000,335 (244,002)
City View Cemetery Fund 219,300 215,092 215,092.00 - (4,208) 295,433 264,580 (30,853)
Blvd Perpetual Maintenance Fund 264,704 128,784 128,784.00 - (135,920) 70,000 70,000 -
Athletic Program Fund 130,550 137,665 137,665.00 - 7,115 136,434 103,739 (32,695)
Golf Course 1,726,264 1,758,968 1,758,968.00 - 32,704 1,715,660 1,605,443 (110,217)
Senior Center Fund 326,050 309,261 309,259.00 2 (16,789) 329,139 301,879 (27,260)
Multi-Modal Fund 68,850 73,589 73,589.00 - 4,739 66,842 58,761 (8,081)
School Impact Fees 1,500,100 1,408,266 1,408,266.00 - (91,834) 1,500,000 1,404,154 (95,846)
Rivershore Trail & Marina Fund 14,450 16,888 16,888.00 - 2,438 16,137 12,319 (3,818)
Special Lodging Assess Fund 270,000 250,665 298,668.00 (48,003) (19,335) 247,310 255,430 8,120
Litter Abatement Fund 17,500 17,502 17,502.00 - 2 15,825 14,646 (1,179)
Revolving Abatement Fund 169,300 202,278 202,277.00 1 32,978 211,234 220,080 8,846
TRAC Develop & Operating Fund 257,200 260,525 291,808.00 (31,283) 3,325 250,000 256,366 6,366
Park Development Fund 214,800 236,616 236,617.00 (1) 21,816 500,300 96,298 (404,002)
Capital Improvement Fund 1,272,000 1,320,294 1,323,508.00 (3,214) 48,294 1,895,839 250,708 (1,645,131)
Economic Development Fund 2,103,600 2,009,897 2,009,897.00 - (93,703) 1,727,910 725,512 (1,002,398)
Stadium/Convention Ctr Fund 289,870 279,017 310,300.00 (31,283) (10,853) 266,223 164,512 (101,711)
Total 19,980,916 17,887,238 (2,093,678) 22,021,165 16,650,848 (5,370,317)
Debt Service Funds
LID Loans 144,430 108,873 108,871.00 2 (35,557) 96,724 32,191 (64,533)
LID Bonds 25,940 39,680 39,679.00 1 13,740 87,800 8,225 (79,575)
Library/Fire Station Bonds 138,100 121,209 121,209.00 - (16,891) 128,100 127,750 (350)
2002 UTGO Bonds 5,000 3,467 3,467.00 - (1,533) - -
LID Guarantee 1,400 (3,740) 3,324.00 (7,064) (5,140) 100,000 - (100,000)
Total 314,870 269,489 (45,381) 412,624 168,166 (244,458)
Permanent Funds
Cemetery Perpetual Care 16,985 13,145 13,145.00 - (3,840) - - -
Total 16,985$ 13,145$ 18,526,227.00 (356,355) (3,840)$ -$ -$ -$
Schedule of Revenues and Expenditures - Budget to Actual
For the Year Ended December 31, 2015
Nonmajor Other Governmental Funds
Revenues Expenditures
City of Pasco, Washington 2015 Comprehensive Annual Financial
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“Action is the real measure of intelligence.”
Napolean Hill
City of Pasco, Washington 2015 Comprehensive Annual Financial
Report
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Enterprise funds are used to account for the financing of goods or services for which a fee is charged
to external users for use of those goods and services. The City of Pasco does not have any nonmajor
enterprise funds.
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the government and to other government units on a cost
reimbursement basis.
Nonmajor Proprietary Funds
Enterprise Funds
Internal Service Funds
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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Medical/
Equipment Equipment Dental Equipment Equipment Total
Rental Rental Insurance Central Rental Rental Internal
Operations Replacement Fund Stores Operations Replacement Service
ASSETS
Current assets:
Current cash & cash equivalents 260,351$ 1,695,158$ 978,878$ 12,865$ 234,566$ 2,057,107$ 5,238,925$
Restricted cash - IBNR 760,386 760,386
Investments 2,397,858 - 494,954 2,892,812
Total current assets 260,351 4,093,016 1,739,264 12,865 234,566 2,552,061 8,892,123
Noncurrent assets:
Interfund loans 1,037,110 - 1,037,110
Restricted investments - IBNR - 396,528 396,528
Machinery and equipment 4,264,074 - 1,626,671 5,890,745
Total noncurrent assets - 5,301,184 396,528 - - 1,626,671 7,324,383
Total assets 260,351 9,394,200 2,135,792 12,865 234,566 4,178,732 16,216,506
DEFERRED OUTFLOWS
Pension related 34,931 34,931
LIABILITIES
Current liabilities:
Accounts payable 21,299 2,064 10,877 34,240
IBNR payable from restricted assets 1,156,914 1,156,914
Total current liabilities 21,299 - 1,158,978 - 10,877 - 1,191,154
Noncurrent liabilities:
Pension liability 147,789 147,789
Total noncurrent liabilities 147,789 - - - - - 147,789
Total liabilities 169,088 - 1,158,978 - 10,877 - 1,338,943
DEFERRED INFLOWS
Pension related 22,412 22,412
NET POSITION
Net investment in capital assets 4,264,074 - 1,626,671 5,890,745
Unrestricted 103,782 5,130,126 976,814 12,865 223,689 2,552,061 8,999,337
Total net position 103,782$ 9,394,200$ 976,814$ 12,865$ 223,689$ 4,178,732$ 14,890,082$
Business-Type ActivitiesGovernmental Activities
Combining Statement of Net Position
Nonmajor Internal Services Fund
December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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Equipment Equipment Medical/Dental Equipment Equipment Total
Rental Rental Insurance Central Rental Rental Internal
Operations Replacement Fund Stores Operations Replacement Service
OPERATING REVENUES
Charges for goods and services -$ 5,842,487$ -$ -$ -$ 5,842,487$
Miscellaneous interfund charges 1,202,535 1,046,845 - 376,672 789,930 3,415,982
Total operating revenues 1,202,535 1,046,845 5,842,487 - 376,672 789,930 9,258,469
OPERATING EXPENSES
Depreciation 539,556 - 312,761 852,317
Salaries & wages 250,015 - 87,174 337,189
Personnel benefits 107,523 - 36,524 144,047
Supplies 479,101 67,159 - 185,142 731,402
Services 153,913 5,945,937 45,012 6,144,862
Total operating expenses 990,552 606,715 5,945,937 - 353,852 312,761 8,209,817
OPERATING INCOME (LOSS)211,983 440,130 (103,450) - 22,820 477,169 1,048,652
NONOPERATING REVENUES (EXPENSES)
Investment income 88,599 25 7 145 88,776
Investment (loss)(1,717) (2,060) (3,777)
Gain on sale of capital assets 14,915 - 14,915
Total nonoperating revenues - 103,514 (1,692) 7 145 (2,060) 99,914
Income (loss) before contributions and
transfers 211,983 543,644 (105,142) 7 22,965 475,109 1,148,566
Transfers out (58,000) (58,000)
Transfers in 261,280 58,000 319,280
Changes in net position 211,983 804,924 (105,142) 7 22,965 475,109 1,409,846
Net position - beginning (Adjusted - (108,201) 8,589,276 1,081,956 12,858 200,724 3,703,623 13,480,236
See Note 11)
Net position - ending 103,782$ 9,394,200$ 976,814$ 12,865$ 223,689$ 4,178,732$ 14,890,082
Governmental Activities
Combining Statement of Revenues, Expenses, and Changes in Net Position
Nonmajor Internal Service Funds
For the Year Ended December 31, 2015
Business-Type Activities
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
110
Equipment Equipment Equipment Equipment Total
Rental Rental Medical Central Rental Rental Internal
Operations Replacement Insurance Stores Operations Replacement Service
CASH FLOW FROM OPERATING ACTIVITIES:
Cash from customers 1,202,535$ 1,046,845$ 5,842,487$ -$ 376,672$ 789,930$ 9,258,469$
Payments to employees (358,955) - - - (123,698) - (482,653)
Payments to suppliers (636,429) (88,274) (5,238,108) - (227,145) - (6,189,956)
Net cash provided by operating activities 207,151 958,571 604,379 - 25,829 789,930 2,585,860
CASH FLOW FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Proceeds from disposal of assets 10,629 10,629
Transfers in for capital 261,280 - 261,280
Acquisition of capital assets - (1,036,417) - - - (334,195) (1,370,612)
Net cash used in capital activities - (764,508) - - - (334,195) (1,098,703)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment sales and income - 563,224 31,736 7 145 2,986 598,098
Investment purchases - (400,000) (400,571) - (500,000) (1,300,571)
Interfund loans - - - - - - -
Net cash provided from investing activities - 163,224 (368,835) 7 145 (497,014) (702,473)
Net increase in cash and cash equivalents 207,151 357,287 235,544 7 25,974 (41,279) 784,684
Beginning cash and cash equivalents 53,200 1,337,871 1,503,720 12,858 208,592 2,098,386 5,214,627
Ending cash and cash equivalents 260,351$ 1,695,158$ 1,739,264$ 12,865$ 234,566$ 2,057,107$ 5,999,311$
CASH PROVIDED BY OPERATING
ACTIVITIES:
Net operating income (loss)211,983$ 440,130$ (103,450)$ -$ 22,820$ 477,169$ 1,048,652$
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
Depreciation - 539,556 - - - 312,761 852,317
Increase (decrease) in accounts payable (3,415) (21,115) 707,829 - 3,009 - 686,308
(Increase) decrease in pension deferred outflow (17,113) (17,113)
Increase (decrease) in pension obligation 39,298 39,298
Increase (decrease) in pension deferred inflow (23,602) (23,602)
Net cash provided by operating activities 207,151$ 958,571$ 604,379$ -$ 25,829$ 789,930$ 2,585,860$
Combining Statement of Cash Flows
Nonmajor Internal Service Funds
For the Year Ended December 31, 2015
Governmental Activities Business-Type Activities
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
111
Pension and other post-employment benefit trust funds are used to report resources that are required to be
held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution
plans, other postemployment benefit plans or other employee benefit plans.
Agency funds are used to report resources held by the reporting government in a purely custodial capacity.
Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, or other governments.
Trust and Agency Funds
Pension and Other Postemployment Benefit Trust Funds
Agency Funds
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
112
Total
Firemen's Other Pension and Other
Firemen's Post-Employment Post-Employment
Pension Benefits Benefits
ASSETS
Cash 145,233$ 14$ 145,247$
Investments at fair market value:
LID note 40,301 40,301
Federal agency 53,571 53,571
Mutual funds 2,001,865 2,562,759 4,564,624
Total assets 2,240,970 2,562,773 4,803,743
LIABILITIES
Due to Primary Government 24,680 24,680
Net Pension Obligation 1,185,733 1,185,733
Total liabilities 1,185,733 24,680 1,210,413
NET POSITION
Held in trust for pension benefits
and other purposes 1,055,237$ 2,538,093$ 3,593,330$
Combining Statement of Net Position
Fiduciary Funds
December 31, 2015
Trust Funds
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
113
Public Animal
Flexible Facility Control Payroll Total
Spending District Authority Clearing Agency
ASSETS
Cash & cash equivalents 8,022$ 51,009$ 82,571$ 228,948$ 370,550$
Total assets 8,022 51,009 82,571 228,948 370,550
LIABILITIES
Accounts payable 8,022 228,948 236,970
Due to other governments 51,009 82,571 133,580
Total liabilities 8,022$ 51,009$ 82,571$ 228,948$ 370,550$
Agency Funds
Combining Statement of Assets and Liabilities
Fiduciary Funds (continued)
December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
114
Total
Firemen's Other Pension and Other
Firemen's Post-Employment Post-Employment
Pension Benefits Benefits
ADDITIONS
Taxes 54,506$ 54,506$
Investment earnings
Interest 5,072 21 5,093
Dividends 173,851 152,269 326,120
Net change in fair value of investments (198,612) (156,544) (355,156)
Total additions 34,817 (4,254) 30,563
DEDUCTIONS
Pension benefits 82,477 82,477
Medical premiums 105,048 105,048
Administrative expenses 3,398 2,974 6,372
Total deductions 85,875 108,022 193,897
Change in net assets (51,058) (112,276) (163,334)
Net position - beginning (Adjusted 1,106,295 2,650,369 3,756,664
see note 11)
Net position - ending 1,055,237$ 2,538,093$ 3,593,330$
Combining Statement of Changes in Net Position
Fiduciary Funds
For The Year Ended December 31, 2015
Trust Funds
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
115
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
ASSETS
Cash & cash equivalents (11,090)$ 187,111$ 167,999$ 8,022$ 80,193$ 27,939$ 57,123$ 51,009$
Total assets (11,090) 187,111 167,999 8,022 80,193 27,939 57,123 51,009
LIABILITIES
Accounts payable (11,090) 188,650 169,538 8,022 -
Due to other governments - 80,193 27,939 57,123 51,009
Total liabilities (11,090)$ 188,650$ 169,538$ 8,022$ 80,193$ 27,939$ 57,123$ 51,009$
Pasco Public Facility DistrictFlexible Spending Accounts
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
116
Balance Balance Balance Balance
January 1 Additions Deletions December 31 January 1 Additions Deletions December 31
ASSETS
Cash & Cash Equivalents 47,807$ 199,740$ 164,976$ 82,571$ 18,265$ 28,976,458$ 28,765,775$ 228,948$
Total Assets 47,807 199,740 164,976 82,571 18,265 28,976,458 28,765,775 228,948
LIABILITIES
Accounts payable - 18,265 30,103,943 29,893,260 228,948
Due to Other Governments 47,807 199,740 164,976 82,571
Total Liabilities 47,807$ 199,740$ 164,976$ 82,571$ 18,265$ 30,103,943$ 29,893,260$ 228,948$
Payroll ClearingAnimal Control Authority
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
117
Balance Balance
January 1 Additions Deletions December 31
ASSETS
Cash & Cash Equivalents 135,175$ 29,391,248$ 29,155,873$ 370,550$
Total Assets 135,175 29,391,248 29,155,873 370,550
LIABILITIES
Accounts payable 7,175 30,292,593 30,062,798 236,970
Due to Other Governments 128,000 227,679 222,099 133,580
Total Liabilities 135,175$ 30,520,272$ 30,284,897$ 370,550$
Total Agency Funds
Combining Statement of Changes in Assets and Liabilities
Agency Funds (Continued)
For the Year Ended December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
118
STATISTICAL SECTION
This part of the City of Pasco’s comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the government’s overall financial health.
CONTENTS Page
Financial Trends 117
These schedules contain trend information to help the reader understand how the government’s financial
performance and well-being have changed over time.
Revenue Capacity 123
These schedules contain information to help the reader assess the government’s most significant revenue
sources.
Debt Capacity 129
These schedules present information to help the reader assess the affordability of the government’s
current levels of outstanding debt and the government’s ability to issue additional debt in the future.
Demographic and Economic Information 133
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government’s financial activities take place.
Operating Information 137
These schedules contain service data to help the reader understand how the information in the
government’s financial report relates to services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial
reports for the relevant year.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
119
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Governmental activities
Net investment in capital assets $59,050 $74,058 $85,294 $97,602 $122,343 $141,497 $163,582 $188,996 $185,424 $198,278
Restricted for:
Restricted *5,738 3,941 4,005 3,551 383 400
Cemetery (nonexpendable) 418 434 455 468
Prepaids 141
Program, grant, donations 86
Contested tax & drug forefits 228 57
Bicentennial celebration 6
Streets and boulevards 6,489 7,205 7,150 6,204
Litter and housing abatement 289 329 369 354
Park development 1,739 1,821 1,994 2,135
Culture and recreation 133
Capital improvement 2,259 2,976 3,733 4,802
Economic development 221 3 49 108
General obligation debt 337 334 349
Special assessment debt 240 48 64 6,240
Unrestricted 15,944 22,710 23,750 24,111 28,241 30,166 14,616 11,883 15,934 10,433
Total governmental activities net position 80,732 100,709 113,049 125,264 150,967 172,063 190,196 214,390 215,719 229,108
Business-type activities
Net investment capital assets 93,667 97,635 109,736 136,995 124,771 129,532 130,321 129,664 137,088 139,166
Restricted 1,798 842 747 777 - - 10,841
Unrestricted 6,252 12,611 5,712 12,618 11,400 12,367 14,719 19,115 4,274 15,736
Total business-type activities net position 101,717 111,088 116,195 150,390 136,171 141,899 145,040 148,779 152,203 154,902
Primary government
Net investment in capital assets 152,717 171,694 195,030 211,596 247,114 271,029 293,903 318,660 322,512 337,444
Restricted 7,536 4,783 4,752 4,328 383 400 11,998 13,511 14,361 20,397
Unrestricted 22,196 35,321 29,462 36,729 39,641 42,533 29,335 30,998 20,208 26,169
Total primary government net assets $182,449 $211,798 $229,244 $252,653 $287,138 $313,962 $335,236 $363,169 $357,081 $384,010
* Break out not available prior to 2012
Net Position by Component
Fiscal Year Ended December 31
(accrual basis of accounting)
Last Ten Fiscal Years
(amounts expressed in thousands)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Expenses
Governmental activities:
General government $8,889 $9,649 $10,410 $12,059 $6,921 $6,517 $6,730 $7,060 $8,092 $8,238
Public safety 16,592 17,214 18,296 18,743 19,419 19,834 20,498 22,491 21,624 24,917
Physical environment 2,319 2,137 3,532 3,050 1,900 2,406 2,992
Transportation 1,299 4,242 4,331 5,137 7,831 9,836 9,913 14,097 16,728 16,374
Economic environment 1,647 1,117 1,199 1,385 797 1,041 2,386 4,456 4,710 5,137
Health and human services 44 40 57 59 1,652 251 421
Culture and recreation 4,872 5,713 5,983 6,212 4,724 7,695 8,224 8,003 7,941 8,115
Interest on long term debt 682 640 587 413 512 517 315 265 210 444
Total governmental activities expenses 36,344 40,752 44,395 47,058 43,756 48,097 51,479 56,372 59,305 63,225
Business-type activities
Water 5,051 5,180 5,990 6,029 6,538 6,845 6,748 7,780 8,238 9,099
Sewer 5,724 6,275 6,316 6,826 6,944 7,922 7,435 7,223 7,902 8,175
Water process reuse 1,558 1,503 1,569 1,558 1,444 1,501 1,185 1,542 1,848 2,524
Storm water 518 595 607 735 791 959 1,028 1,165 1,288 1,168
Irrigation 748 936 1,015 1,009 1,045 1,038 1,099 1,226 1,546 1,779
Total business-type activities expenses 13,599 14,489 15,497 16,157 16,762 18,265 17,495 18,936 20,822 22,745
Total primary government expenses 49,943 55,241 59,892 63,215 60,518 66,362 68,974 75,308 80,127 85,970
Program revenues
Governmental Activities:
Charges for Services
General government 5,529 7,098 6,667 8,982 2,134 1,981 2,575 4,578 5,083 5,283
Public safety 1,862 2,263 2,626 3,006 3,684 3,893 4,415 4,398 5,144 5,177
Physical environment 798 744 836 1,282 499 1,331 1,406
Transportation 810 491 476 623 1,504 1,795 310 3,507 4,203 3,672
National & economic environment 1,780 1,579 1,135 1,431 17 1,459 2,734 3,361 3,172 3,570
Health and human services 1,851 30 14
Culture and recreation 583 465 445 480 604 2,161 1,838 2,471 2,334 2,502
Operating grants and contributions 1,045 1,074 376 504 1,448 1,763 1,043 639 1,702 1,770
Capital grants and contributions 9,244 3,438 14,753 13,283 25,488 25,117 16,144 30,631 4,302 23,929
Total governmental activities program revenues 21,651 17,152 27,314 29,591 37,229 39,530 30,479 49,585 25,940 45,903
Business-type activities
Charges for services 14,186 14,307 17,232 18,319 18,148 17,774 18,044 17,977 20,002 20,979
Operating grants and contributions 0 0 0 0 0 370 412 42 23 27
Capital grants and contributions 3,625 6,377 3,254 3,061 4,654 5,671 5,586 4,214 3,344 6,090
Total business-type activities program revenues 17,811 20,684 20,486 21,380 22,802 23,815 24,042 22,233 23,369 27,096
Total primary government program revenues $39,462 $37,836 $47,800 $50,971 $60,031 $63,345 $54,521 $71,818 $49,309 $72,999
(accrual basis of accounting)
(amounts expressed in thousands)
Changes in Net Position
Fiscal Year Ended December 31
Last Ten Fiscal Years
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
121
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net (expenses)/revenues
Governmental activities ($14,693)($23,599)($17,078)($17,467)($6,527)($8,567)($21,000)($6,787)($33,365)($17,322)
Business-type activities 4,212 6,195 4,504 5,223 6,040 5,550 6,547 3,297 2,547 4,351
Total primary government (10,481)(17,404)(12,574)(12,244)(487)(3,017)(14,453)(3,490)(30,818)(12,971)
General revenues and other changes in net assets
Governmental Activities:
Taxes
Property taxes 5,303 5,774 6,055 6,276 6,080 6,847 6,658 7,149 7,069 7,255
Sales and use taxes 8,226 8,646 8,843 8,000 8,245 9,403 10,284 11,472 12,695 13,646
Occupational utility taxes 7,561 7,842 8,689 8,924 8,917 8,914 8,843 8,894 9,592 10,268
Other taxes 3,305 3,729 4,655 4,686 1,738 1,838 2,046 2,117 2,290 2,443
Intergovernmental *1,663 2,599 3,161 1,566 1,581 1,741
Investment and miscellaneous 2,412 2,892 987 852 1,147 691 1,486 137 62 252
Transfers 113 846 613 566 (149)3,439 (355)(150)-
Total governmental activities 26,920 29,729 29,842 29,304 27,641 30,292 35,917 30,980 33,139 35,605
Business-type activities
Investment and miscellaneous 3,758 4,184 425 399 1,062 177 33 88 29 103
Transfers (183)(866)(613)(566)149 (3,439)355 150 -
Total business-type activities 3,575 3,318 (188)(167)1,211 177 (3,406)443 179 103
Total primary government 30,495 33,047 29,654 29,137 28,852 30,469 32,511 31,423 33,318 35,708
Changes in net position
Governmental activities 12,227 6,130 12,764 11,837 21,114 21,725 14,917 24,193 (226)18,283
Business-type activities 7,787 9,513 4,316 5,056 7,251 5,727 3,141 3,740 2,726 4,454
Total primary government $20,014 $15,643 $17,080 $16,893 $28,365 $27,452 $18,058 $27,933 $2,500 $22,737
*Included with "Other taxes" until 2010.
Fiscal Year Ended December 31
Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
122
Fiscal Year
Ended
December 31
Property
Taxes
Sales and
Use Taxes B&O Taxes
Excise and Other
Taxes Total Taxes
2005 4,883 7,857 7,100 3,223 *23,063
2006 5,303 8,226 7,561 3,305 *24,395
2007 5,774 8,646 7,842 3,729 *25,991
2008 6,056 8,843 8,689 4,655 *28,243
2009 6,276 8,000 8,924 4,686 *27,886
2010 6,080 8,245 8,917 1,739 24,981
2011 6,847 9,403 8,914 1,838 27,002
2012 6,659 10,284 8,843 2,046 27,832
2013 7,149 11,472 8,894 2,117 29,632
2014 7,069 12,695 9,592 2,290 31,646
2015 7,255 13,646 10,268 2,443 33,612
Source:
Statement of activities
Prior CAFR
* Also included intergovernmental revenues
(amounts expressed in thousands)
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
123
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General fund
Assigned -$ -$ -$ -$ -$ 3,208$ -$ -$ -$
Restricted
Prepaids 136
Program, grant, donation 86
Bi-centennial celebration 6
Law Enforcement 228 57
Debt Repayment/guarantee 4,876
Committed
Landfill claims 401 405 406 407
Assigned
Subsequent year's budget appropriation 2,872 806
Unassigned 8,050 6,264 5,612 7,978 11,920
Reserved *1,891 1,517 692 1,898
Unreserved *6,861 9,088 10,270 7,917 9,414
Total general fund 8,752$ 10,605$ 10,962$ 9,815$ 9,414$ 11,258$ 9,543$ 6,245$ 9,383$ 17,289$
All other governmental funds
Nonspendable
Cemetery permanent fund -$ -$ -$ -$ -$ 400$ 418$ 434$ 455$ 467$
Restricted 9,496 5
Street and boulevard**6,489 7,205 7,150 6,204
Litter & housing abatement**288 329 369 354
Park development**1,739 1,822 1,995 2,135
Culture and recreation 132
Capital improvements**2,260 2,976 3,733 4,802
Economic development**221 3 49 108
Debt repayment/guarantee 1,364
General obligation debt**337 334 349
Special assessment debt**240 47 64
Committed 5,375
Special revenue funds*1,117 2,365 2,031 3,017
Construction projects*861 199 33 238
Debt guarantee*1,033 924 926
Unassigned (178) (1,254) (1,188) (442) (400)
Reserved *5,729 3,910 3,890 2,798 383
Unreserved, reported in:
Special revenue funds 6,115 8,260 9,872 9,010 10,846
Debt service funds 671 773 921 1,307 1,095
Capital project funds (1,158) (224) (1,750) (655) 833
Total all other governmental funds 11,357$ 12,719$ 12,933$ 12,460$ 13,157$ 15,093$ 13,749$ 15,582$ 16,717$ 18,289$
* Prior to GASB 54
*'* Break out not available prior to 2012
Fund Balance of Governmental Funds
Fiscal Year Ended December 31
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
124
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenue
Taxes 23,362$ 24,516$ 25,716$ 25,339$ 24,960$ 26,832$ 28,017$ 29,602$ 31,756$ 33,587$
Licenses and permits 2,116 1,924 1,616 1,860 1,966 1,874 1,862 1,777 1,983 3,389
Intergovernmental revenue 10,802 4,719 5,293 4,041 7,929 8,252 4,901 5,785 6,868 5,857
Charges for services 4,388 4,738 4,771 5,285 5,502 7,475 9,509 11,486 12,562 11,598
Fines and forfeitures 829 1,054 1,017 1,063 944 955 891 985 961 1,209
Investment and miscellaneous 2,803 2,734 2,310 2,963 2,930 2,547 2,767 2,559 3,146 2,264
Total revenues 44,300 39,685 40,723 40,551 44,231 47,935 47,947 52,194 57,276 57,904
Expenditures
Current:
General government 5,026 5,001 5,341 5,847 6,547 6,087 6,381 6,705 7,720 7,940
Public safety 15,593 16,820 17,711 18,418 18,820 18,780 19,990 22,365 22,110 25,269
Physical environment 1,609 1,825 2,078 2,066 1,855 2,288 2,846
Transportation 1,133 1,537 1,536 1,566 2,149 2,447 2,890 3,897 6,344 5,273
Natural and economic enviroment 681 745 671 944 54 872 2,137 4,287 4,568 4,989
Health and human services 44 40 57 59 1,313 210 376
Culture and recreation 3,827 4,117 4,279 4,670 4,757 6,402 6,807 6,978 7,153 7,357
Capital outlay *14,188 5,737 7,345 7,718
General government 104 154 193 1,426 506 166
Public safety 124 35 648 2,726 258 3,274
Physical environment 868 7
Transportation 3,441 3,276 3,141 2,994 2,852 2,203
Natural and economic enviroment 419 657 1,527 254 1,351
Culture and recreation 2,633 369 185 225 471
Debt service:
Principal 1,120 1,162 1,108 1,249 1,178 1,575 3,308 1,194 675 581
Interest 682 640 587 413 512 517 316 265 210 445
Total expenditures 43,903 37,624 40,713 42,950 44,774 43,669 50,752 53,091 53,972 57,968
Excess of revenues
over (under) expenditures 397 2,061 10 (2,399) (543) 4,266 (2,805) (897) 3,304 (64)
Other financing sources (uses)
Disposition of capital assets 157 7 227 700
Proceeds of general debt 795 4,533 8,795
Debt proceeds - Premiums 308
Debt refinanced (4,280)
Insurance recoveries 1 251 (1)
Transfer in 5,864 4,984 5,094 5,432 6,559 5,229 6,434 7,029 3,800 7,352
Transfer out (5,710) (4,247) (4,542) (4,527) (6,708) (5,229) (6,689) (7,596) (4,343) (7,613)
Total other financing sources (uses)155 894 559 1,156 645 253 (255) (567) (316) 9,542
Net change in fund balances 552$ 2,955$ 569$ (1,243)$ 102$ 4,519$ (3,060)$ (1,464)$ 2,988$ 9,478$
Debt services as percentage
of noncapital expenditures 6.1%5.7%5.1%4.7%4.5%5.4%7.8%3.0%1.8%1.9%
* Breakout not available prior to 2010
Fiscal Year Ended December 31
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
125
Fiscal Year
Ended
December 31
Residential
Property
Commercial
Property
Other
Property
Total Taxable
Assessed
Valuation
Total
Direct Tax
Rate
2006 1,685,326 85,760 54,277 1,825,363 2.74
2007 2,309,544 113,973 59,650 2,483,167 2.54
2008 1,942,831 473,136 445,373 2,861,340 2.49
2009 1,525,399 869,876 539,517 2,934,792 2.23
2010 2,151,661 577,476 172,776 2,901,913 2.22
2011 2,216,469 582,468 209,591 3,008,528 2.18
2012 2,323,387 716,283 180,219 3,219,889 2.17
2013 2,433,119 731,717 165,958 3,330,794 2.16
2014 2,455,759 833,089 192,151 3,480,999 2.00
2015 2,615,824 914,211 201,939 3,731,974 1.99
Source: Franklin County Assessor
Real Property
Assessed Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
126
Fiscal Year
Ended
December 31 Admissions Cable TV Solid Waste Water Irrigation *Sewer Storm **Reuse **Gas Telephone Electricity Total
2006 38 300 387 547 793 786 1,607 3,140 7,598
2007 78 288 468 563 742 853 1,723 3,206 7,921
2008 115 356 482 595 724 799 2,519 3,213 8,803
2009 136 369 491 646 820 962 2,142 3,382 8,948
2010 149 383 515 709 821 925 2,059 3,356 8,917
2011 142 381 530 658 81 636 63 127 809 2,034 3,455 8,916
2012 148 391 536 679 85 647 91 158 707 1,910 3,489 8,841
2013 157 404 512 689 89 666 97 124 525 1,711 3,465 8,439
2014 158 516 573 782 107 665 108 186 790 1,839 4,026 9,750
2015 160 532 660 809 115 680 124 191 829 1,695 4,635 10,430
* Previously included in Water
** Previously included in Sewer
B&O Taxes by Type
Last Ten Fiscal Years
(in thousands of dollars)
(Gross Revenues times 8 1/2% Tax Rate)
Fiscal Year
Ended
December 31
Operating
millage
Debt
service
millage
Total city
millage
Operating
millage
Debt
service
millage
Total
county
millage
Operating
millage
Debt
service
millage
Total
school
millage
Special
districts
Total direct
and
overlapping
rates
2006 2.391 0.350 2.741 1.749 0.348 2.097 3.768 2.747 6.515 0.399 11.752
2007 2.249 0.293 2.542 1.699 0.320 2.019 3.929 2.992 6.921 0.388 11.870
2008 2.221 0.268 2.489 1.673 0.281 1.954 3.834 3.083 6.917 0.383 11.743
2009 2.004 0.230 2.234 1.459 0.261 1.720 4.170 3.081 7.251 0.347 11.552
2010 1.999 0.225 2.224 1.478 0.238 1.716 4.155 2.395 6.550 0.338 10.828
2011 1.972 0.212 2.184 1.422 0.216 1.638 4.359 2.286 6.645 0.329 10.796
2012 1.968 0.203 2.171 1.440 0.214 1.654 4.352 2.250 6.602 0.033 10.460
2013 1.967 0.197 2.164 1.508 0.201 1.709 4.455 2.207 6.662 0.329 10.864
2014 1.956 0.045 2.001 1.352 0.135 1.487 4.314 2.528 6.842 0.323 10.653
2015 1.946 0.042 1.988 1.308 0.124 1.432 4.389 2.497 6.886 0.313 10.619
Source: Franklin County Assessors (Property tax booklet)
1 Overlapping rates are those of local and county governments that apply to property owners within the City of Pasco. Not all overlapping rates apply to
all City of Pasco property owners whose property is located within the geographic boundaries of the special district.
City of Pasco
Property Tax Rates
Direct and Overlapping 1 Governments
Last Ten Fiscal Years
Overlapping Rates
School DistrictCounty
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
127
Fiscal Year
Ended
December 31 City of Pasco 1 Franklin County 1
2006 811,292,511 929,717,630
2007 856,422,037 1,057,004,462
2008 877,529,074 1,052,102,171
2009 802,641,083 917,095,762
2010 825,267,329 964,584,879
2011 839,174,222 1,007,226,337
2012 861,063,371 1,037,096,483
2013 933,301,814 1,110,257,463
2014 1,016,794,531 1,196,017,085
2015 1,125,060,910 1,315,962,291
1 Source: Washington State Department of Revenue
Taxable Retail Sales
Last Ten Fiscal Years
Taxpayer
Taxable
assessed
value Rank
Percentage
of total
taxable
Taxable
assessed
value Rank
Percentage
of total
taxable
Syngenta Seed Inc $34,891 1 0.89%
Pasco Processing LLC 32,043 2 0.81%31,316 1 1.09%
CRF Frozen Foods LLC 28,491 3 0.72%
Twin City Foods, Inc.20,287 4 0.51%22,098 2 0.77%
Grimmway Enterprises Inc 18,502 5 0.47%
Broadmoor LLC 16,614 6 0.42%16,432 3 0.57%
The Crossing at Chapel Hill 16,477 7 0.42%16,085 4 0.56%
Western State Equipment 15,129 8 0.38%14,400 5 0.50%
Wal-Mart, Inc 14,056 9 0.36%13,745 6 0.48%
Kenyon Zero Storage 13,870 10 0.35%
Skywest Airlines, Inc 13,241 7 0.46%
Conagra Foods Lamb-Weston, Inc.12,632 8 0.44%
BNSF Railway Co.12,255 9 0.43%
Old Standard Life Insurance 11,234 10 0.39%
$210,360 5.33%$163,438 5.69%
Source: Franklin County Assessor's Office
2015 2008
Principal Property Taxpayers
Current Year and Seven Years Prior
(amounts expressed in thousands)
Fiscal Year Ended December 31
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
128
Taxpayer
Tax
Revenue Rank
Percentage of
Total Tax
Revenue
Tax
Revenue Rank
Percentage
of Total Tax
Revenue
Company A $4,192 1 49.67%$2,997 1 46.02%
Company B 699 2 8.28%488 2 7.49%
Company D 603 3 7.15%404 5 6.20%
Company E 484 4 5.74%295 6 4.53%
Company F 383 5 4.54%
Company C 374 6 4.43%449 4
Company G 216 7 2.56%0.00%
Company J 158 8 1.87%135 8 2.07%
Company O 93 9 1.10%
Company N 92 10 1.09%
Company I 142 7 2.18%
Company P
Company Q 484 3
Company R 101 9 1.55%
Company L 88 10 1.35%
Company M 0.00%
$7,294 86.43%$5,583 71.39%
Note: Per state privacy laws the names of the companies are confidential and have been indicated instead by letter. The
above information is provided to show concentration risk by company.
Source: Revenue collection
Principal B&O Taxpayers
Current Year and Ten Years Prior
(amounts expressed in thousands)
2005
Fiscal Year Ended December 31
2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
129
2015 2006
Sales % of Sales % of
Tax Total Tax Total
Industries Paid Rank Sales Tax Paid Rank Sales Tax
Motor vehicle and parts dealers $2,485,846 1 24.09%$1,553,185 1 20.95%
Merchant wholesale, durable goods 840,067 2 8.14%776,944 2 10.48%
Construction of buildings 776,708 3 7.52%421,800 4 5.69%
Food services, drinking places 656,751 4 6.36%338,591 8 4.57%
Specialty trade contractors 585,799 5 5.68%628,960 3 8.48%
General merchandise stores 584,259 6 5.66%408,218 5 5.51%
Building material and garden 409,566 7 3.97%249,406 9 3.36%
Rail Transportation 326,623 8 3.16%0.00%
Rental and leasing services 289,079 9 2.80%357,386 7 4.82%
Repair and maintenance 243,100 10 2.36%
Telecommunications 0.00%200,425 10 2.70%
Miscellaneous store retailers 0.00%381,601 6 5.15%
Other 3,122,420 30.27%2,097,093 28.29%
Total $10,320,218 100.01%7,413,609$ 100.00%
Source: Washington State Department of Revenue
Top Ten Industries that Generate Sales Tax
Current Year and Nine Years Prior
Fiscal Year Ended December 31
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
130
Fiscal Year Ended
December 31
Total tax
levy for
fiscal year Amount
Percentage
of levy
Collections in
Subsequent
years 1 Amount
Percentage
of levy
2006 5,314 5,114 96.2%194 5,308 99.9%
2007 5,763 5,600 97.2%160 5,760 99.9%
2008 6,061 5,887 97.1%158 6,045 99.7%
2009 5,738 5,579 97.2%160 5,739 100.0%
2010 6,400 6,211 97.0%138 6,349 99.2%
2011 6,638 6,480 97.6%141 6,621 99.7%
2012 6,850 6,693 97.7%128 6,821 99.6%
2013 7,011 6,833 97.5%111 6,944 99.0%
2014 7,064 6,933 98.1%0 6,933 98.1%
2015 7,287 7,169 98.4%0 7,169 98.4%
Source: Franklin County Treasurer's Office Tax Rolls
1 County provides four prior years and combines five years or more together.
Total collections to date
Collected within the fiscal
year of the levy
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
131
Fiscal Year
Ended
December 31
General
Obligation
Bonds
Special
Assessments
External
Loans &
Notes 3
Water/ Sewer
Bonds ²
Other Loans
Payable3
Total Primary
Government
Percentage of
Personal
Income
Per
Capita 1
2005 13,650$ 2,329$ 2,958$ 19,300$ 20,673$ 58,910$ 6.3%1,333$
2006 12,955 3,288 2,784 18,045 19,394 56,466 5.6%1,186
2007 11,850 2,853 2,496 17,620 18,078 52,897 5.1%1,054
2008 10,915 120 2,222 16,245 16,722 46,224 3.9%884
2009 9,945 120 2,093 16,549 23,487 52,194 3.6%958
2010 8,940 785 1,824 29,125 13,950 54,624 3.4%970
2011 7,670 785 1,543 26,240 12,531 48,769 Not available 799
2012 4,710 395 1,258 24,260 11,067 41,690 2.2%665
2013 3,835 227 995 30,355 9,556 44,968 Not available 685
2014 3,315 208 748 28,030 7,997 40,298 Not available 595
2015 11,580 200 593 36,690 6,389 55,452 Not available 815
² Water/Sewer Bonds include Special Assessments.
3 External Loans & Notes and Other Loans Payble have been restated to correct for loan misclassified as business-type
that should have been classifed as governmental. Total Primary Governement debt was not impacted.
1 This ratio was calculated using population for the applicable fiscal year.
Note: Details regarding the City's outstanding debt can be found in the notes and schedules to the financial statements.
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Governmental Activities Business-type Activities
Fiscal Year
Ended
December 31
General
obligations
bonds
Less: Amounts
available in debt
service fund Total
Percentage of
estimated actual
taxable value 1
of property
Per
capita 2
2006 12,955 3,105 9,850 0.5396%207
2007 11,850 2,824 9,026 0.3635%180
2008 10,915 2,787 8,128 0.2841%155
2009 9,945 1,231 8,714 0.2969%160
2010 8,940 1,322 7,618 0.2625%135
2011 7,670 1,487 6,183 0.2055%101
2012 4,710 1,494 3,216 0.0999%51
2013 3,835 1,325 2,510 0.0754%38
2014 3,315 1,420 1,895 0.0544%28
2015 11,580 1,459 10,121 0.2907%149
Note: Details regarding the City's outstanding debt can be found in the notes and schedules
to the financial statements.
1 See the schedule of assessed value taxable property on page 120 for property tax values.
2 See schedule of population on page 130.
Ratios of General Bonded Debt Outstanding
and Bonded per Capita
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
132
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Debt limit $57,846 $62,079 $72,012 $73,370 $72,923 $75,213 $80,378 $88,541 $88,576 $91,985
Total net debt applicable to limit 15,341 10,470 13,252 12,501 11,954 11,670 4,966 4,053 4,063 (12,174)
Legal debt margin $42,505 $51,609 $58,760 $60,869 $60,969 $63,543 $75,412 $84,488 $84,513 $104,159
Total net debt applicable to the
limit as a percentage of debt limit 26.52%16.87%18.40%17.04%16.39%15.52%6.18%4.58%4.59%-13.23%
Legal debt margin calculation for fiscal year 2015
Assesed Valuation for 2015 Collections 3,679,413$
Non-Voted Debt Capacity Value (1.5% of Assessed Value)55,191
Less:
Non-Voted GO Bonds Outstanding 11,180
Other Non-voted General Obligations Outstanding 594
11,774
Remaining capacity without a vote 66,965
Voted and Non-Voted Debt Capacity: (2.5% of Assessed Value)91,985
Less:
Voted GO Bonds Outstanding 400
Non-Voted GO Bonds Outstanding 11,180
Other Non-voted General Obligations Outstanding 594
12,174
$104,159
Note: The total indebtedness for general purposes with or without a vote cannot exceed 2.5% of the value of taxable property. The general purposes indebtedness includes debt for
capital leases without a vote. The legal limit for capital leases debt (RCW 35.42.200) is included in the 2.5 percent and does not constitute extra allowable debt.
The 1.5 percent is the maxium limit for gerneral purposes without a vote (councilmanic debt). A council may choose to allocate any portion of this debt capacity to the "voted"
category.
If done so, this 1.5 percent of the indebtedness available without vote is to be proportionately reduced by the excess "voted" debt over 1 percent.
Fiscal Year Ended December 31
Legal Debt Margin
Last Ten Fiscal Years
(amounts expressed in thousands)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
133
Direct debt Amount
Voted General Obligation 400$
Councilmanic General Obligation Debt 11,774
Total direct debt 12,174
Overlapping Debt
Jurisdiction Outstanding debt Percent applicable
Estimated Share of
Overlapping Debt
Franklin County 30,805 51.79%15,954
Pasco School District 153,310 62.54%95,880
Port of Pasco 32,953 52.08%17,162
Total overlapping debt 128,996
Total direct & overlapping debt 141,170
Governmental activities debt ratios
Assessed valuation- 2015 (established in November, 2014 for the 2015 tax year)3,679,413
Population 68
Net direct debt to assessed valuation 0.33%
Net direct debt and overlapping debt to assessed valuation 3.84%
Assessed valuation per capita 54,109
Net direct debt per capita 179
Direct debt and overlapping debt per capita 2,076
Councilmanic debt and other obligations:
G.O. Bonds Outstanding 11,180
Other Non-voted G.O. Outstanding 594
11,774
Voted GO debt:
G.O. Bonds Outstanding 400
400$
(1) Outstanding debt represents total general obligation debt.
(2) Applicable percentage is determined by ratio of assessed valuation of property subject to taxation
in the overlapping unit to valuation of property subject to taxation in the reporting unit.
Sources:
Franklin County Assessor's Office
Franklin County Assessor's website- tax booklet
Direct and Overlapping Governmental Activities Debt
As of December 31, 2015
(amounts expressed in thousands)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
134
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Operating Revenues
Water Sales (1)5,455,176$ 5,619,985$ 5,304,341$ 5,515,937$ 5,596,298$ 6,797,470$ 6,989,958$ 7,087,462$ 7,594,091$ 7,566,510$
Irrigation Sales (1)678,321 717,653 753,251 874,036 917,076 954,204 1,105,076 1,159,651$
Sewer Sales (1)7,838,131 7,809,425 5,997,993 6,265,581 5,788,397 5,614,564 5,705,414 5,813,572 5,914,671 6,197,705$
Stormwater Sales (1)442,174 462,205 401,279 867,801 883,305 972,375 1,054,682 1,185,162$
Process Water Reuse Sales (1)1,654,699 1,720,517 1,723,291 1,492,743 1,942,683 1,453,597 1,997,655 2,053,639$
Other Utility Charges (2)3,004,086 2,418,505 1,851,282 2,320,023 3,871,057 1,907,123 1,711,031 1,935,286 2,347,236 2,113,312$
Total Operating Revenues 16,297,393 15,847,915 15,928,810 17,001,916 18,133,573 17,553,737 18,149,467 18,216,496 20,013,411 20,275,979
Operating & Maintenance Expenses
Salaries & Wages 1,800,937 2,014,749 2,205,177 2,662,207 2,518,691 2,535,882 2,461,588 2,599,431 2,830,832 3,016,535
Personnel Benefits 501,301 682,213 423,330 478,162 892,651 913,062 952,672 1,114,349 1,330,549 1,403,036
Supplies 282,130 361,443 673,157 479,289 854,667 1,092,728 855,626 1,121,916 1,492,845 1,633,374
Services (1)3,581,220 3,750,684 3,758,991 4,448,568 4,477,102 5,193,430 5,293,094 5,749,161 5,890,538 7,262,581
Total Operating Expenses 6,165,588 6,809,089 7,060,655 8,068,226 8,743,111 9,735,102 9,562,980 10,584,857 11,544,764 13,315,526
Operating Income 10,131,805 9,038,826 8,868,155 8,933,690 9,390,462 7,818,635 8,586,487 7,631,639 8,468,647 6,960,453
Non-Operating Revenue
Interest Income 572,283 579,418 371,318 359,244 228,784 116,848 39,607 41,009 15,685 28,310
Net Farmland Rental (3)626,292 686,140 530,307 698,974 375,599 498,413
Total Non-Operating Revenues (4)1,198,575 1,265,558 901,625 1,058,218 604,383 615,261 39,607 41,009 15,685 28,310
Net Revenues 11,330,380 10,304,384 9,769,780 9,991,908 9,994,845 8,433,896 8,626,094 7,672,648 8,484,332 6,988,763
Other Sources of Funds
Special Assessment Repayments 306,036 297,186 575,461 42,005 387,867 283,861 225,506 257,366 123,404 94,284
Total Other Sources 306,036 297,186 575,461 42,005 387,867 283,861 225,506 257,366 123,404 94,284
Max Annual Assessment Debt Service 417,156 417,156 567,968 390,393 289,613 212,489 199,582 203,764 202,852 202,852
Net Revenue Available for
NonAssessment Debt Service 11,219,260 10,184,414 9,777,273 9,643,520 10,093,099 8,505,268 8,652,018 7,726,250 8,404,884 6,880,195
Non-Assessment Bond Debt Service (5)2,038,365 2,050,932 1,856,078 2,119,329 2,309,689 2,852,381 2,905,851 2,771,990 3,348,068 4,475,261
Non-Assessment Bond
Debt Service Coverage (6)5.50 4.97 5.27 4.55 4.37 2.98 2.98 2.79 2.51 1.54
Balance Available for Other Purposes 9,180,895$ 8,133,482$ 7,921,195$ 7,524,191$ 7,783,410$ 5,652,887$ 5,746,167$ 4,954,260$ 5,056,816$ 2,404,934$
Notes:
Irrigation included with Water 2004-2007; Stormwater and Process Water Reuse included with Sewer 2004-2007.
(1) Excludes revenue raised and used to pay interfund city taxes.
(2) Includes one time fees such as new connection, new meter, capital facility, penalties, operating grants, etc.
(3) Farm assets sold in 2011
(4) Excludes noncash capital contributions, gains/losses, capital grants, etc.
(5) Excludes debt for prepaid maturities
(6) Bond convenant requires coverage ratio of 1.25 times Maximum Annual Debt Service
Waterworks Utility Debt Service Coverage
(Per Bond Offical Statement Defintions)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
135
Pasco
Fiscal Year
Ended
December 31 Population 1 Population 1
Kennewick-
Richand MSA
Unemployment
rate 1, 4 Population 1
Per capita
personal
income 1
Total Personal
Income3 (in
thousands)
Median
household
income 1, 3
Median
household
age 1
School
enrollment 2
2006 49,439 155,439 7.0%66,371 21,317 1,414,831 43,187 27.00 12,516
2007 52,555 160,145 6.4%69,582 20,573 1,431,510 49,337 28.66 12,610
2008 54,993 166,933 10.3%72,230 22,955 1,658,040 44,797 28.20 13,701
2009 57,579 172,169 7.26%75,111 26,342 1,978,574 43,754 27.40 14,437
2010 59,781 181,756 7.79%78,163 Not Available Not Available 53,355 Not Available 15,427
2011 61,000 184,755 7.92%80,500 Not Available Not Available 53,644 28.53 16,143
2012 62,670 187,720 8.73%82,500 30,169 2,488,943 56,221 Not Available 15,994
2013 65,600 193,160 9.10%84,800 30,534 2,589,283 57,196 29.14 16,612
2014 67,770 197,560 7.70%86,600 Not Available Not Available 58,538 Not Available 17,016
2015 68,240 199,610 6.80%87,150 Not Available Not Available 59,747 Not Available 17,353
Fiscal Year
Ended
December 31
Average wage
per job 1 , 3
Unemployment
rate 1, 4 Population 1
Per capita
personal
income 1 , 3
Total Personal
Income3 (in
thousands)
Median
household
income 1, 3
School
enrollment
K-12 1
2006 43,825 4.90%6,420,258 40,139 257,702,736 53,522 1,027,312
2007 46,114 4.50%6,525,086 42,845 279,567,310 56,141 1,031,846
2008 47,140 5.50%6,608,245 44,162 291,833,316 57,858 1,025,495
2009 47,993 9.30%6,672,159 42,112 280,977,960 55,458 1,032,678
2010 49,337 9.90%6,724,540 42,521 285,934,165 54,888 1,037,219
2011 51,139 9.20%6,767,900 44,420 300,630,118 55,500 1,037,676
2012 52,945 8.20%6,817,770 46,045 313,924,220 56,444 1,040,631
2013 53,334 7.00%6,882,400 48,353 332,784,687 57,554 1,047,353
2014 Not Available 6.10%6,968,170 49,583 345,502,773 58,686 1,057,388
2015 Not Available 5.70%7,061,410 Not Available Not Available 62,108 1,067,998
SOURCES:
1 State of Washington Office of Financial Management
2 Pasco School District (October Enrollment) from 2002-2010. Office of Financial management 2011 October Headcount Enrollment
3 2013 and 2014 Data is inflation adjusted to 2013 Dollars per State of Washington Office of Financial Management
4 2013 and 2014 Unemployment Date from the U. S. Bureau of Labor Statistics
Franklin County
State
Last Ten Fiscal Years
Demographic and Economic Statistics
Tri Cities
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
136
Employer Employees Industry Rank Employees Industry Rank
Battelle/PNNL 4,250 Research & Development 1 4,485 Research and Development 1
Kadlec Medical Center 3,000 Health Services 2 2,175 Health Services 6
Bechtel National 2,729 Government 3 2,850 Government 5
ConAgra (Lamb Weston)2,498 Agriculture Products 4 3,057 Agriculture Products 4
Kennewick School District 2,110 Education 5 1,473 K-12 Education 10
Pasco School District 1,983 Education 6 2,065 K-12 Education 7
Mission Support Alliance 1,923 Government 7 1,478 Government 9
Washington River Protection 1,490 Government 8 1,686 Government 8
Richland School District 1,691 Education 9
CH2M Hill 1,380 Government 10 3,260 Government 3
URS 3,500 Government 2
Source: TRIDEC
Prior years' information is not available.
Employer Employees Industry Rank Employees Industry Rank
Pasco School District 1,983 Education 1 2,065 K-12 1
Columbia Basin College 823 Community College 2 766 Community College 3
Lourdes Health Network 791 Health Care 3 807 Health Care 2
Boise Cascade 439 Manufacturing 4 571 Manufacturing 4
Pasco processing 375 Food Processor 5 350 Food processor-vegetables 5
City of Pasco 329 City Services 6 305 City services 6
Douglas Fruit 300 Fruit Packaging 7 210 Fruit packaging 8
Franklin County 288 County Services 8 190 County services 9
Tri-Cities Airport 250 Airport 9
Reser's Fine Foods 219 Food Processor 10 230 Food processor-potatoes 7
West Communication 180 Call Center 10
Source: TRIDEC
2011
Franklin County
2015
Principal Employers
Year Ended December 31
Tri Cities
2011
2015
Current Year & 4 Years Ago
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
137
Employment Sector 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Goods Producing 14,600 14,000 13,600 13,400 13,600 13,300 13,200 12,900 12,700 11,900
Natural resources & construction 6,700 6,300 6,200 6,000 6,500 6,200 6,300 6,500 6,600 6,000
Manufacturing 7,900 7,700 7,400 7,400 7,100 7,100 6,900 6,400 6,100 5,800
Service providing 92,700 89,700 88,100 87,900 90,300 88,600 83,900 80,700 78,900 74,800
Private services providing 73,700 71,100 69,800 69,800 72,200 70,700 66,500 63,700 62,500 58,900
Trade, transportation, warehousing & utilities 19,100 18,100 17,500 17,100 16,700 16,600 16,200 16,700 16,800 16,000
Retail trade 12,700 12,100 11,800 11,700 11,500 11,400 11,300 11,700 11,900 11,400
Financial activities 4,000 3,900 4,200 3,900 3,700 3,600 3,400 3,600 3,600 3,500
Professional & business services 21,200 20,700 20,800 21,800 24,900 24,500 21,700 20,600 20,300 18,500
Administrative & support services 10,800 10,400 10,500 10,600 12,200 12,000 10,200 9,400 9,800 9,000
Education & health services 14,800 14,400 13,700 13,400 13,300 13,000 12,300 10,100 9,700 9,200
Leisure and hospitality 10,400 9,900 9,600 9,500 9,400 9,000 8,800 8,600 8,100 7,900
Food services 7,600 7,300 7,000 6,900 6,800 6,500 6,300 6,300 6,000 5,600
Government 19,000 18,600 18,300 18,200 18,100 18,000 17,400 17,000 16,400 16,000
Federal & State government 4,300 4,300 4,300 4,200 4,200 4,200 4,000 3,700 3,700 3,600
Local government 14,700 14,300 14,100 13,900 13,900 13,700 13,400 13,300 12,700 12,400
Total Non-Agriculture 107,300 103,700 101,700 101,300 103,900 101,900 97,100 93,600 91,600 86,700
Total Private 88,300 85,100 83,400 83,100 85,900 84,000 79,700 76,600 75,200 70,700
Non-Agriculture Wage and Salary Workers
Employed in Kennewick-Richland-Pasco MSA (rounded to hundreds) (1)
Last Ten Fiscal Years
(1) Detail may not add to indicated total due to rounding. Excludes proprietors, agriculture, self-employed, unpaid family, domestic workers and military. Includes all full and part-time
wage and salary workers receiving pay during the period including the 12th of the month by place of work. Information for 2005 through 2008 is from Washington State Employment
Security Department (using BLS data). All subsequent data (2009 and forward) is directly from the U. S. Bureau of Labor Statistics (BLS) and not seasonally adjusted.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
138
Fiscal Year
Ended
December 31
New
Single
Family
Permits
New
Single
Family
Value
Total
Permits
Total
Value Permits Value Permits Value Permits Value
2006 744 133,250 1,869 139,835 343 41,064 34 21,384 2,246 202,283
2007 524 106,192 1,576 106,191 269 68,417 41 13,153 1,886 187,761
2008 404 77,891 1,403 82,934 227 17,494 47 22,554 1,677 122,982
2009 476 96,228 1,499 102,110 261 43,189 90 16,799 1,850 162,098
2010 544 111,392 1,908 119,197 234 31,251 45 7,324 2,187 157,772
2011 492 105,577 1,817 113,320 289 16,591 28 3,519 2,134 133,430
2012 338 72,768 1,507 85,314 328 30,317 54 26,360 1,889 141,991
2013 220 50,396 1,705 73,701 364 44,173 44 6,862 2,113 124,736
2014 223 53,923 1,517 67,408 297 58,575 74 37,832 1,888 163,815
2015 248 62,949 1,724 83,033 317 48,618 98 36,291 2,139 167,942
SOURCE:
1 City of Pasco website Building Permit History.
2 Includes single family and mobile home
TotalCommercialResidental 2 Industrial
Building Permits
Last Ten Fiscal Years
(amounts expressed in thousands)
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
139
Function 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General government 47 49 51 52 46 45 45 45 49 50
Public safety
Muni Court 13 14 14 14 15 16 16 16 15 15
Police
Officers 62 64 66 69 67 67 67 71 71 71
Civilians 12 11 11 11 11 12 12 12 12 12
Fire
Firefighters and officers 34 34 34 34 34 33 33 35 35 39
Ambulance 15 15 15 15 16 18 19 19 19 19
Physical enviroment
Utilities
Water 18 18 20 22 22 22 21 20 20 22
Sewer 14 15 17 18 18 18 17 18 19 21
Water process reuse 3 3 3 3 3 2 2 3 2 2
Storm water 4 4 4 4 4 5 5 4 5 6
Irrigation 2 2 2 2 2 2 2 2 4 4
Transportation
Highways and streets
Engineering 15 14 14 13 13 13 14 16 17 17
Maintenance 7 7 7 7 7 7 7 6 7 8
Health and human services 2 2 2 2 2 2 3 3 3 3
Economic enviroment 12 15 14 17 15 15 15 15 16 16
Culture and recreation 15 16 17 16 16 16 16 16 16 17
Total 275 283 291 299 291 293 294 301 310 322
Source: Annual Operating Budget
Fiscal Year Ended December 31
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
140
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Function
Public Safety
Police
Violent crime 160 150 166 217 183 202 178 151 183 156
Nonviolent crime 1,795 1,817 1,688 1,525 1,475 1,609 1,711 1,628 1,516 1,482
Calls for service 46,095 49,191 54,061 55,672 52,116 49,819 52,027 54,996 52,067 49,575
Victims per 1000 population 41 39 35 32 29 30 30 27 40 25
Fire & Emergency Medical Service
Number of emergency response-FIRE 429 428 233 238 215 277 260 279 241 281
% of total incidents-FIRE*10%7%6%6%5%6%
Number of emergency response-EMS 2,485 2,586 3,316 3,005 3,016 3,337 3,474 3,394 3,731 4,011
% of total incidents-EMS*90%79%79%79%79%79%
Number of emergency response-OTHER*614 662 658 730 805
% of total incidents- OTHER*15%15%15%16%16%
Community Development
Number of new Single Family units 729 518 398 467 530 483 314 204 219 243
Number of new Muli Family units 0 0 0 0 8 1 16 0 8 0
Number of new Manufactured units 15 6 6 9 14 9 21 16 4 5
Commercial permits 377 310 274 351 279 317 382 408 341 415
Construction value (millions)62.4 81.6 40.0 60.0 38.6 20.1 56.7 51.0 96.4 84.9
Residential permits 1,869 1,576 1,403 1,499 1,908 1,817 1,507 1,705 1,517 1,724
Construction value (millions)139.8 106.2 82.9 102.1 119.2 113.3 85.3 73.7 67.4 83.0
Physical environment
Highway and streets
Street resurfacing (miles)*4.6 3.50 3.57 9.63
Utilities
Water
Bills processed 165,165 177,195 189,061 194,614 202,136 207,685 217,911 226,934 227,682 233,858
New connections 838 734 543 631 666 571 449 328 340 438
Water meters replaced 88 75 78 73 1,842 1,900 2,640 1,431 1,471 1,499
Source: Various government departments.
Fiscal year
Operating Indicators by Function
Last Ten fiscal years
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
141
Amounts Amounts
No. of Permits in Thousands in Millions
Commercial 317 48,618
Less Multi-Family 0 0
Industrial 98 36,291
415 84,909 85
Mobile Home 5 345
Plus Commercial Multi Family 0 0
Residential 1,719 82,687
1,724 83,032 83
Total 2,139 167,941 168
Single Family:
SFDU 243 62,604
Mobile Home 5 345
248 62,949 63
Building Permits
City of Pasco
Year ended December 31, 2015
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
142
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Function
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Sub-Stations 4 4 4 4 4 4 4 4 4 4
Patrol units 34 35 37 43 43 50 52 53 58 39
Fire stations 3 3 3 3 3 3 3 3 3 3
Culture and recreation
Parks *27 27 27 27 21
Parks acreage *274 280 280 320 323
Swimming pools 3 3 3 3 3 3 3 3 2 2
Physical environment
Streets
Street (miles)238 302 392 475 619 781 821 823 839 843
Street lights 3,074 3,138 3,172 3,222 3,290 3,374 3,449 3,469 3,476 3,532
Traffic signals *44 49 50 50 50 50
Water
Water mains (miles)289 292 298 302 306 309 313 314 315 323
Services (accumulated total)15,021 15,335 15,508 15,748 16,081 16,305 16,660 16,754 16,783 17,206
Fire hydrants 1,887 1,916 1,966 1,997 2,036 2,069 2,106 2,114 2,138 2,214
Maximum daily capacity
Million Gallons per Day (MGD)29 29 29 29 33 33 30 30 30 32
Sewer
Sanitary sewer (miles)206.5 209.5 216.2 219.8 224 226 264 265 266 269
Maximum daily treatment
capacity (MGD) 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1 6.5
Average daily treatment (MGD) *3.2 3.1 3.3 3.6 3.9 4.0 4.1 4.3 4.5 0.5
Water Process Reuse
Irrigated acres 1,848 1,848 1,848 1,848 1,848 1,848 1,848 1,848 1,848 1,848
Total Acres 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200
Storm Water
Storm sewer (miles)40 40 40 40 42 43 45 46 47 48
Number of catch basins 2,664 2,738 2,801 2,878 3,089 3,176 3,289 3,322 3,336 3,451
Irrigation
Maximum daily capacity (thousand of
gallons) 9,950 12,300 16,100 17,100 17,100 17,100 17,100 17,100 20,760
Sources: Various government departments.
Capital Used by Function
Last Ten Fiscal Years
Fiscal Year Ended December 31
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
143
2008 2009 2010 2011 2012 2013 2014 2015
Water System Accounts by Class
Single Family Residential 13,549 14,344 14,670 15,204 15,612 15,792 15,969 16,355
Multi-Family Residential 504 507 453 463 468 470 482 496
Commercial 1,058 1,112 1,272 1,296 1,321 1,421 1,372 1,430
Other 56 426 402 4,047 422 452 455 476
Total 15,167 16,389 16,797 21,010 17,823 18,135 18,278 18,757
Sewer System Accounts by Class
Single Family Residential 11,887 12,148 12,841 13,373 13,746 13,949 14,133 14,450
Multi-Family Residential 504 482 442 449 454 470 497 512
Commercial 921 1,017 935 949 969 987 1,004 1,125
Total 13,312 13,647 14,218 14,771 15,169 15,406 15,634 16,087
Stormwater System Customer Accounts 14,667 15,129 15,778 16,329 16,718 17,580 17,781 18,585
Irrigation System Customer Accounts 3,992 4,284 4,783 5,176 5,435 5,668 6,604 6,863
Process Water Reuse Facility Customers
Pasco Processing 39%43%38%50%46%46%41%42%
Twin City Foods 16%19%32%16%21%19%22%23%
CRF Frozen Foods-Bybee Food 16%18%16%17%15%21%19%19%
Reser's Fine Food 29%20%14%17%18%14%18%16%
100%100%100%100%100%100%100%100%
Source: City of Pasco billing systems.
Waterworks Utility Customer Accounts
Last Eight Fiscal Years
For the Month of August
Percent of Total Annual Billed Revenue
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
144
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Water rates and monthly charges
Inside city rates listed; outside city 90% surcharge
Consumption per 100 cu feet 0.54$ 0.54$ 0.54$ 0.54$ 0.65$ 0.65$ 0.65$ 0.68$ 0.68$ 0.70$
Single family residential monthly base (in city)
Size of Service
3/4 inch 10.50 10.50 10.50 10.50 12.50 12.50 12.50 12.50 16.25 16.25
1 inch 15.75 15.75 15.75 15.75 18.74 18.74 18.74 18.74 24.35 24.35
Multi-family and commercial monthly base
Size of Service
3/4 inch 14.80 14.80 14.80 14.80 17.61 17.61 17.61 17.61 22.90 22.90
1 inch 21.37 21.37 21.37 21.37 25.43 25.43 25.43 25.43 33.05 33.05
1 1/2 inch 41.69 41.69 41.69 41.69 49.61 49.61 49.61 49.61 64.50 64.50
2 inch 66.88 66.88 66.88 66.88 79.59 79.59 79.59 79.59 103.45 103.45
3 inch 91.34 91.34 91.34 91.34 108.69 108.69 108.69 108.69 141.30 141.30
4 inch 131.60 131.60 131.60 131.60 156.60 156.60 156.60 156.60 203.60 203.60
6 inch 205.43 205.43 205.43 205.43 244.46 244.46 244.46 244.46 317.80 317.80
8 inch 284.68 284.68 284.68 284.68 338.77 338.77 338.77 338.77 440.40 440.40
Irrigation monthly charge
Base per residential unit 24.00 24.00 24.00 24.00 24.00 26.00 26.00 26.00 26.00 26.00
Per Irrigation unit 7.50 7.50 7.50 7.50 7.50 8.12 8.12 8.12 8.12 8.12
Per Irrigated acre 70.00 70.00 70.00 70.00 70.00 75.81 75.81 75.81 75.81 75.81
Sewer rates and monthly charges
Inside city rates listed; outside city 50% surcharge
Residential monthly base <= 4 units 30.59 27.53 27.53 27.53 27.53 24.80 24.80 24.80 24.80 24.80
Residential monthly base > 4 units 24.50 22.05 22.05 22.05 22.05 20.00 20.00 20.00 20.00 20.00
No residential consumption charge 8.30
Commercial base rate 40.88 36.79 36.79 36.79 36.79 33.35 33.35 33.35 33.35 33.35
Consumption per 100 cu ft over 1000 cu ft 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.29 5.25 1.29
Stormwater monthly charge
Residential
Single family residential 1.80 1.80 1.80 1.80 1.80 3.00 3.90 3.90 4.40 4.90
Apartments (per unit)1.80 1.80 1.80 1.80 1.80 3.00 1.95 1.95 2.20 2.45
Multi-family residential (per unit)0.90 0.90 0.90 0.90 0.90 1.50 1.95 1.95 2.20 2.45
Undeveloped parcels - - - - - - - - - -
Vacant buildings 1.80 1.80 1.80 1.80 1.80 3.00 3.90 3.90 4.40 4.90
Industrial/Commercial
Parking for 0-5 vehicles 1.80 1.80 1.80 1.80 1.80 3.00 3.90 3.90 4.40 4.90
Parking for 6-10 vehicles 3.60 3.60 3.60 3.60 3.60 6.00 7.80 7.80 8.80 9.80
Parking for 11-15 vehicles 5.40 5.40 5.40 5.40 5.40 9.00 15.60 15.60 13.20 14.70
Parking for 16 plus vehicles 7.20 7.20 7.20 7.20 7.20 12.00 19.50 19.50 17.60 19.60
Additional charges
Property runoff to City systems ($1.25 min) - acre40.00 40.00 40.00 40.00 40.00 66.70 86.71 86.71 86.71 86.71
State Highway right-of-way - acre 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ 16.68$ 21.71$ 21.71$ 21.71$ 21.71$
Source: City of Pasco Municipal Code Title 3
Waterworks Selected Utility Rates
Last Ten Fiscal Years
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
145
“Appreciation is a wonderful thing: it makes what is excellent in others belong to us as well.”
Voltaire
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
146
STATE REQUIRED SCHEDULES
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
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MCAG NO. 0292
SCHEDULE 9 - SCHEDULE OF LIABILITIES
For the Year Ended December 31, 2015
Maturity/
BARS code for Payment Beginning Ending
ID No.Description Due Date Balance Additions Reductions OPTIONAL Balance
GENERAL OBLIGATIONS
251.11 Councilmanic 2011 LTGO Refund 2001 LTGO 12/1/2020 2,815,000 - 430,000 2,385,000
251.12 Voted 1999 UTGO Library & Fire Station 12/1/2019 500,000 - 100,000 400,000
251.12 Voted 2015 LTGO Police Station 12/1/2035 - 8,795,000 - 8,795,000
263.83 Other Gov't 2006 Port Airport Fire Building 7/12/2016 22,333 - 13,940 8,393
263.96 LOCAL 2002 State LOCAL - Animal Control Facililty Land12/1/2016 58,946 - 29,270 29,676
263.93 OPEB OPEB 2,523,460 1,648,633 841,009 3,331,084
TOTAL GENERAL OBLIGATIONS 5,919,739 10,443,633 1,414,219 - 14,949,153
REVENUE OBLIGATIONS
252.11 Revenue bond 2002 Rev Bond Water 12/1/2022 1,160,000 - 1,160,000 -
252.11 Revenue bond 2005 Rev Bond Water/Sewer 9/1/2025 2,810,000 - 2,810,000 -
252.11 Revenue bond 2009 Revenue Bond Water Plant 11/1/2029 8,060,000 - 430,000 7,630,000
252.11 Revenue bond 2010A 6/1/2029 5,300,000 - 260,000 5,040,000
252.11 Revenue bond 2010T Refund 98 A PWRF 6/1/2018 680,000 - 160,000 520,000
252.11 Revenue bond 2013A Sewer Bond 12/1/2028 2,420,000 - 100,000 2,320,000
252.11 Revenue bond 2013T PWRF Bond 12/1/2028 7,235,000 - 435,000 6,800,000
252.11 Revenue bond 2015 Rev Water Plant 12/1/2040 - 14,380,000 - 14,380,000
252.11 Revenue bond 2007 ULID 141 & 142 - Sewer 9/1/2022 365,000 - 365,000 -
263.82 State loan Sewer Pollution Control Facility PWTF 95-025 7/1/2015 43,011 - 43,011 -
263.82 State loan West Pasco Water System PWTF 95-026 7/1/2015 107,375 - 107,375 -
263.82 State loan Riverview Trunk/SE Sewer PW00-043 7/1/2020 666,842 - 111,140 555,702
263.82 State loan Sewer Treatment Plant Phase 1&2 SRF Loan 7/31/2020 7,846,882 - 1,457,961 6,388,921
259.12 Comp absence Compensated absences (Gov't + Business)2,360,533 1,599,914 1,642,520 2,317,927
TOTAL REVEUE OBLIGATIONS 39,054,643 15,979,914 9,082,007 - 45,952,550
ASSESSMENT OBLIGATIONS -
253.11 Bond 2010 LID 145 - A Street Improvements 11/15/2020 160,000 - - 160,000
253.63 Note 2011 LID 146 & Pension Fund Note 5/1/2021 48,320 - 8,019 40,301
TOTAL ASSESSMENT OBLIGATIONS 208,320 - 8,019 - 200,301
TOTAL LIABILITIES 45,182,702 26,423,547 10,504,245 - 61,102,004
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
148
CITY OF PASCO
SCHEDULE 15- SCHEDULE OF STATE AND LOCAL FINANCIAL ASSISTANCE
For the Year Ended December 31, 2015
Grantor/Other
Pass-Through Grantor Identification STATE
Program Title Number AWARDS
Washington State Department of Ecology
Columbia Water Supply Project 1,798
Shoreline Master Program SMP (DOE)G1400367 52,207
2014 Storm Retro Fit (100K of $170K)956
2014 Stormwater capacity ($50K of $170K)G1400301 27,182
Total Department of Ecology 82,143
Washington State Traffic Safety Commission
2013-2014 Target ZERO Task Force 13,275
Total Traffic Safety Commission 13,275
Washington State Department of Commerce
2014-2015 Edward Byrne Formula (Metro)14,944
Total Washington Department of Commerce 14,944
Department of Secretary of State
2011-2015 Archive Grant 10,436
10,436
Department of Health & Human Services
2015 Prehospital Participation Grant 1,341
1,341
TOTAL STATE AND LOCAL ASSISTANCE:122,139
2015
M14-31440-009
G1400301
14ST-02
G-12/064
MCAG NO. 0292
C1200160
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
149
SCHEDULE 16- SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2015
From
Grantor/Federal Other Pass-From
Pass-Through Grantor CFDA Identification Through Direct
Program Title Number Number Awards Awards Total Note:
US Department of Housing & Urban Development
Community Development Block Grant/Entitlement Grant 14.218 B-13-MC-53-009- CDBG 111,705 111,705 3,7
Community Development Block Grant/Entitlement Grant 14.218 B-14-MC-53-009- CDBG 481,550 481,550 3,7
Community Development Block Grant/Entitlement Grant 14.218 B-15-MC-53-009- CDBG 459,180 459,180 3,7
Community Development Block Grant/Entitlement Grant cluster - 1,052,435 1,052,435
Pass-Through Department of Commerce
Neighborhood Stabilization Plan 14.228 08-F6401-014 190,506 190,506 3,7
Pass-Through City of Richland
Home Investment Partnerships Program 14.239 Home Program 256,085 256,085 3,5,7
Total US Department of Housing & Urban Development 446,591 1,052,435 1,499,026
US Department of Justice
Pass-Through Washington Department of Commerce
Violence Against Women Formula Grant 16.588 2014-WF-AX-0053 34,698 34,698 2,7
Pass-Through Washington Department of Commerce
Bulletproof Vest Partnership Program 16.607 2015 8,697 8,697 2,7
Pass-Through from METRO Drug Task Force
Edward Byrne Memorial Justice Assistance 16.738 M14-31440-009 53,606 53,606 2,7
Edward Byrne Memorial Justice Assistance 16.738 F15-31440-008 40,554 40,554 2,7
Total JAG Program Cluster 16.738 94,160 - 94,160
Pass-Through from US Marshalls
Equitable Sharing Program 16.922 Equitable Sharing 3,746 3,746 6,7
Total US Dept of Justice 132,604 8,697 141,301
US Department of Transportation/ Federal Highway Administration
Pass-Through Washington Department of Transportation
Highway Planning and Construction 20.205 STPUL-3515 (007) LA-8059 3,871 3,871 2,7
Highway Planning and Construction 20.205 STPUS-0397 (008) LA-7866 100,503 100,503 2,7
Highway Planning and Construction 20.205 STPUS-0397 (008) LA-7866 2,197 2,197 2,7
Highway Planning and Construction 20.205 STPUS-0397 (008) LA-7866 767 767 2,7
Highway Planning and Construction 20.205 Total Oregon Avenue 103,467 103,467 2,7
Highway Planning and Construction 20.205 STPUL-3515(008)19,701 19,701 2,7
Highway Planning and Construction 20.205 HSIP-3551 (004) - LA 8697 91,848 91,848 2,7
Highway Planning and Construction 20.205 STPUS-9911 (007) LA-7782 33,630 33,630 2,4,7
Highway Planning and Construction 20.205 STPUL-3515 (006) LA-8060 4,460 4,460 2,7
Highway Planning and Construction 20.205 STPUL-9911(010)24,571 24,571 2,7
Highway Planning and Construction 20.205 STPUL-9911 (009)19,046 19,046 2,7
Highway Planning and Construction 20.205 STPUL-1823(062) LA 8318 119,624 119,624 2,7
Highway Planning and Construction 20.205 STPUL-3522 (001) LA-8117 11,269 11,269 2,7
Dual Right Turn SB Rd 68-Study 20.205 STPUS-HLP-3530 (006) LA-7055 37,441 37,441 2,7
Total US Dept. of Transportation FHA 468,928 - 468,928
US Department of Transportation -National Highway Traffic Safety Administration (NHTSA)
Pass-Through Washington Association of Sherriff & Police Commission
State and Community Highway Safety 20.600 14ST-02 18,907 18,907 2,7
Pass-Through Washington Traffic Safety Commission
State and Community Highway Safety 20.600 14-15 Impaired Driving 655 655
State and Community Highway Safety 20.600 14-15 Distracted Driving (WTSC)178 178
State and Community Highway Safety 20.600 14-15 HVE 833 833 2,7
State and Community Highway Safety 20.600 WTSC- FLEX FUNDING GRANT 247 247 2,7
State and Community Highway Safety 20.600 15-16 Impaired Driving 835 835 2,7
Total US Dept of Transportation NHTSA 20,822 - 20,822
US Department of Health & Human Services
Pass-Through Yakima County, Office of Aging & Long Term Care
Special Programs for the Aging_Title III, Part B 93.044 ALTC 15 15,817$ 15,817$ 2,7
Total US Dept of Health & Human Services 15,817 - 15,817
US Department of Homeland Security
Pass-Through Franklin County Emergency Management
Homeland Security Grant Program 97.067 E14-155 15,578 15,578 2,7
Homeland Security Grant Program 97.067 E15-118, FFY 2014 30,000 30,000 2,7
Total US Department of Homeland Security 45,578 - 45,578
TOTAL FEDERAL AWARDS EXPENDED:1,130,340$ 1,061,132$ 2,191,472$
The accompanying notes are an integral part of this schedule.
MCAG NO. 0292
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
150
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
NOTE 1 – BASIS OF ACCOUNTING
The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the City’s
financial statements. The City uses a modified accrual basis of accounting for its governmental funds and
full accrual basis of accounting for its proprietary funds.
NOTE 2 – PROGRAM COSTS
The amounts shown as current year expenditures represent only the federal grant portion of the program costs.
Entire program costs, including the City’s portion, are more than shown. Such expenditures are recognized
following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and
Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.
NOTE 3 – REVOLVING LOAN – PROGRAM INCOME
The City participates in a Regional Revolving Loan program for economic development which is operated
by Benton Franklin Council of Governments. Under this federal pass-through grant, repayments to the
City are considered program income, and loans of such funds to eligible recipients are considered
expenditures.
The City participates in the Neighborhood Stabilization Program for recovering foreclosed properties
which are rehabilitated and sold as low-income housing. Under this federal pass-through grant, the sale of
low-income homes by the City is considered program income, and the cost of rehabilitating homes and
purchasing properties are considered expenditures. In 2015, $112,393 in program income was generated
from the sale of property.
The City also participates in the Housing and Urban Development HOME Program for low-income
individuals, as part of a regional consortium administered through the City of Richland. The City is not
privy to information on what portion of funds received from the City of Richland are derived from program
income.
NOTE 4 – PRIOR YEAR EXPENDITURES
The amount reported includes $33,630 in previously unreported prior year expenditures. This amount was
originally denied because it was in a line item that was maxed out. After the project closed the grantor
transferred the remaining funds into the line item maxed out. The grantor paid the remainder of the funds.
NOTE 5 – AMOUNTS AWARDED TO SUBRECIPIENTS
The total amount of $256,085 was passed through to sub-recipient City of Richland.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
151
NOTE 6 –DEPARTMENT OF JUSTICE –EQUITABLE SHARING
The City reports these funds on the Schedule of Expenditures of Federal Awards when program proceeds
are received rather than when expenditures are incurred due to program stipulations.
NOTE 7 – INDIRECT COST RATE
The amount expended includes $0.00 claimed as an indirect cost recovery using an approved indirect cost rate
of 0 percent. The City has elected to use the 10-percent de minimis indirect cost rate allowed under Uniform
Guidance.
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
152
SCHEDULE 19 - LABOR RELATIONS CONSULTANTS
For the Year Ended December 31, 2015
Has your government engaged labor relations consultants?X Yes No
If yes, please provide the following information for each consultant(s):
Name of Firm:Name of Firm:
The Wesley Group The Summit Law
Name of Consultant:Name of Consultant:
Kevin Wesley Elizabeth Kennar, consultant
Business Address:Business Address:
P.O. Box 7164 315 Fifth Avenue South Suite 1000
Kennewick, WA 99336-0616 Seattle, WA 98104
Amount Paid To Consultant During Fiscal Year:Amount Paid To Consultant During Fiscal Year:
$15,275.00 $!0,287.86 pd by HR to consultant
Terms And Consitions, As Applicable, Including:Terms And Consitions, As Applicable, Including:
Rates (E.G., Hourly, Etc.):$100 per hour Rates (E.G., Hourly, Etc.):$270 per hour
Maximum Compensation Allowed:0 Maximum Compensation Allowed:0
Duration Of Services:Various throughout the year.
Services Provided:Union Bargaining Assistance - Wesley
Human Resources Issues - Kennar
Certified Correct this 13th day of May, 2015
to the best of my knowledge and belief:
Colleen Chapin
HR Manager
MCAG NO. 0292
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
153
SCHEDULE 21 - LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31, 2015
Program Manager:Coleen Chapin
Address:525 N 3rd Ave Pasco Wa 99301
Phone:509-545-3473
Email:chapinc@pasco-wa.gov
Yes Does the entity self-insure for any class of risk, including liability, property, health and
welfare, unemployment compensation, workers' compensation? (yes or no)
Which class of risk does the entity self-insure? (Check all that apply)
Liability
Property
X Health and welfare (medical, dental, prescription)
Unemployment compensation
Workers' compensation
Other - please dscribe ________________________________________
Yes Does the entity self-insure as an individual program? (yes or no)
No Does the entity allow another separate legal entity into its self-insurance
programs (yes or no) For example, employees of a different organization
participate in a health and welfare program of a city.
If so, list the entity or entities:____________________________________________
No Does the entity self-insure as a joint program? (yes or no)
If Yes, list the other member(s) ____________________________________________
No Does the entity administer its own claims? (yes or no)
Yes Does the entity contract with a third party administrator for claims administration? (yes or no)
Yes Did the entity receive a claims audit in the last three years, regardless of who administered
the claims? (yes or no)
Yes Were the program's revenues sufficient to cover the program's expenses (yes or no)
No Did the program use an acturary to determine its liabilities? (yes or no)
MCAG NO. 0292
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
154
SCHEDULE 21 - LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31, 2015
Third Party Administrator Benefit Management, Inc.
Contact Kelli Gerstenkorn
Address:PO Box 1090, Great Bend, KS 67530
Phone:800-290-1368 x2076
Email:kglover@bmikansas.com
Describe each class of risk the governing body has decided to assume as well as the appropriate
dollar level involved.
Numbers of claims Numbers of claims Total amount of
received during the paid during the claims paid
period period during the period
Medical/Rx 26,551 26,272 $4,461,442.53
Dental 1,770 1,649 $368,752.45
MCAG NO. 0292
Description of Risk Type
City of Pasco, Washington 2015 Comprehensive Annual Financial Report
155
OUR THANKS TO AN EXCELLENT TEAM
We recognize the contributions of the following City of Pasco employees for their contribution to this
report. Each member of this team of professionals played a key role in producing this CAFR. Their
dedication and teamwork are essential to the success of this report and all of their efforts are hugely
appreciated.
Richard G. Terway
Administrative and Community Service Director
Dunyele Mason
Temp Employee
Joseph Mugo
Accounting Lead
Karen Conn
Staff Accountant
Cindy Willis
Temp Employee