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Debt Administration
Pasco, like most cities, is involved with voted and non-voted
general obligation bonds, revenue bonds, and special assessment
bonds. Specific funds are created to account for special levy
property tax earmarked to retire voted general obligation bonds.
Non-voted G.O. bonds are accounted for within the General Fund since
general property tax dollars are used for the debt service
requirements on this type of bond. Revenue bonds are accounted for
within the Water/Sewer Fund; debt service payments are generated
through user fees from utility operations. Net income of the
utility, excluding depreciation and City utility tax, must be
maintained at least 4 0% higher than the average debt service to
comply with bond covenants.
Debt service payments are met through assessments
specific property benefited and liens are placed
property until the full assessment has been paid.
against
against
the
such
As the following schedule reflects, the City's General Obligation
debt has decreased to a small portion of its statutory maximum of
2.5% of assessed valuation.
DIRECT DEBT:
Councilmanic G.O.
Voted G.O.
L.I.D. Bonds
Golf Redevelopment
Bridge Equalization
Public Safety Building
$1,485,000
195,000
3,484,683
280,620
75,092
22.440
LESS: Amount Available in Debt Service Fund
NET DIRECT DEBT
Outstandin<J:
NET
DIRECT DEBT $2,120,230
Ratio of Debt
to Assessed
valuation
0.54%
5,542,835
3.422.605
$2,120,230
Debt Per
ca'2ita
$115 . 04
Major expansion projects of the water/sewer system in the 1960's,
1970's, and 1980 1 s have been funded mainly through bond issues. As
of December 31, 1988, the water/sewer utility had $1,600,000 of
outstanding bonded and non-bonded debt.
During the late 1970 1 s and early 1980's the City undertook the
massive project of rebuilding a vast number of City streets through
the Local Improvement District (L.I.D.) process. Although the City,
at one time, had in excess of $9 million in L.I.D. bonds
outstanding, at year-end in 1988 only $3,484,683 remained
outstanding.
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CITY OF PASCO, WASHINGTON
PRINCIPAL OFFICIALS
AS OF DECEMBER 31, 1988
ELECTED OFFICIALS
MAYOR:
ED HENDLER (1)
COUNCILMEMBERS:
MICHAEL GARRISON
JOE JACKSON (2)
BEVERLY GREEN
E.A.SNIDER
LELAND KRAFT
EMERSON MORGAN
(1) Previously served as Councilmember for 9.5 years.
(2) Previously served as Mayor for 4 years.
ADMINISTRATIVE OFFICIALS
CITY MANAGER • GARY CRUTCHFIELD
CITY ATTORNEY· GREG A. RUBSTELLO
DIRECTOR OF PUBLIC WORKS -JAMES S. AJAX
DIRECTOR OF FINANCE • DANIELL UNDERWOOD
POLICE CHIEF • DONALD J. FRANCIS
FIRE CHIEF -LARRY DICKINSON
DIRECTOR OF PARKS & RECREATION -
RICHARD 0. ERICKSON
DIRECTOR OF COMMUNITY DEVELOPMENT -
DAVID I. MCDONALD
CITY CLERK -EVELYN WELLS
LENGTH TERM
OF SERVICE EXPIRES DISTRICT
11 YEARS 12/31/89 3
1 YEARS 12/31/89 2
5 YEARS 12/31/91
9 YEARS 12/31/89 4
13 YEARS 12/31/91 5
3 YEARS 12/31/89 AT-LARGE
7 YEARS 12/31/91 AT-LARGE
LENGTH OF Tl ME LENGTH OF
IN POSITION TIME WITH CITY
.5 YEARS 11 YEARS
8 YEARS 8 YEARS
9 YEARS 14 YEARS
0 YEARS 3 YEARS
6 YEARS 6 YEARS
5 YEARS 19 YEARS
19 YEARS 22 YEARS
4 YEARS 4 YEARS
11 YEARS 25 YEARS
vii
Enterprise Funds These funds account for operations that provide goods or services to the general public and are supported primarily through user charges; or where the governing body has decided that periodic determination of net income is needed. Internal Service Funds These funds account for operations that provide goods or services to other departments or funds of the City or to other governmental units on a cost-reimbursement basis. FIDUCIARY FUND TYPES: Fiduciary funds account for assets held by the City on behalf of individuals and other funds. Expendable Trust Funds These funds can earn revenue and make expenditures on behalf of the parties for which the trust was established. The entire income and principal (or corpus) of an expendable trust may be disbursed in the course of its operations; accordingly, expendable trust funds are accounted for in essentially the same manner as governmental funds. Nonexpendable Trust Funds These funds earn revenue on behalf of the parties for which the trust was established, but the principal (or corpus) of the trust must remain intact. Nonexpendable trust funds are accounted for in essentially the same manner as proprietary funds, since capital maintenance is a primary consideration. Pension Trust Funds These funds are used to account for the operations of trusts established for employee retirement benefits. They are accounted for in essentially the same manner as proprietary funds because of the need for determining the periodic income of the trust. Agency Funds These funds are custodial in nature do not involve the measurement 1 3 (assets equal liabilities) and of results of operations.
L LEOFF had no material changes in benefit provisions for this year. Employer and employee contribution rates for Plan II are developed by the Office of State Actuary to fully fund the system. Plan II employers and employees are required to pay at the level established by the legislature. Plan I employers and employees are required to contributed at a rate of 6 Percent and the state is responsible for the balance of the funding. The methods used to determine the contribution requirements were established under the authority of the legislative statute. The City of Pasco's current-year covered payroll for the fiscal year ended December 31, 1988 was $1,877,858. The City's total current-year payroll for all employees was $3,974,661. The City's contribution rates expressed as a percentage of covered payroll, for the year ending December 31, 1988 were: Plan I Plan II ReQuired Actual ReQuired Actual Employer 6.00% 6.00% 4.56% 4.85% Employee 6.00% 6.00% 7.60% .8....Jl.9.% Total 12.00% 12.00% 12.16% 12.94% ===== ===== ===== ===== The City of Pasco's actuarilly determined contribution requirement and actual contribution for the year ending December 31, 1988 were: Plan I Plan II Re<J:uired Actual Re<J:uired Actual Employer $ 40,676 $ 40,676 $ 54,716 $ 58,196 Employee 40,676 40,676 91,194 97,074 Total $ 81,352 $ 81,352 $145,910 $155,270 ======== ======== ======== ======== The City's actuarilly determined employer contribution requirement represents approximately 0.573 percent of the total for all employers covered by LEOFF. c. Firemen's Pension The City is also the administrator of the Firemen's Pension System. The system is shown as a trust fund in the financial reports of the City. 27
D. As of December 31, 1988, there were a total of 17 individuals covered by this system of which three were currently still employed and 14 were drawing benefits. One individual covered by the Plan is employed outside the City of Pasco. The most recent actuarial study of the system was done by Howard Johnson & Comany to determine the funding requirements as of 12/31/84. As of this date, the book value of the plan assets was $869,788 and the present value of future benefits was $1,501,537 leaving an unfunded pension benefit obligation of $631,749. Based on this study, the City is levying property taxes of $.038 per $1,000 of assessed valuation for the fireman's pension system which will amortize the liability over 25 years. The following 10-year system's progress in benefits when due. Net Assets Fiscal Available Year For Benefits 1988 $1,177,602 1987 1,177,602 1986 961,889 1985 869,788 1984 802,768 1983 683,555 1982 611,557 1981 510,242 1980 331,973 1979 313,922 Deferred Com~ensation historical trend information shows accumulating sufficient assets to Unfunded Pension Pension Benefit Percentage Benefit the pay Obligation Funded Obligation $1,501,537 78.43% $ 323,935 1,501,537 73.65 395,656 1,501,537 64.06 539,648 1,501,537 57.93 631,749 1,501,537 53.36 701,769 1,710,000 39.97 1,026,445 1,710,000 35.76 1,098,443 1,710,000 29.84 1,199,758 1,675,300 19.82 1,343,327 1,675,300 18.74 1,361,378 The City offers its employees a deferred compensation plan created in accordance with IRS Code 457. This plan is with the International City Management Association. The plan, available to eligible employees, permits them to defer a portion of their salary until future years. .The deferred compensation is not available until termination, retirement, death, or unforseeable emergency. Compensation deferred under the plan and all income attributable to the plan are solely the property of the City. The City's right's to this property are subjuct only to the claims of the City's general creditors until paid to the employee or other beneficiary and are not restricted to the benefit provisions under the plan. 28
.J CITY OF PASCO, WASHINGTON ENTERPRISE FUNDS COMBINING BALANCE SHEET (continued) AS OF DECEMBER 31, 1988 AND DECEMBER 31, 1987 WATER/ SEWER LIABILITIES AND FUND EQUITY Current Liabilities Accounts Payable $ 24,479 Matured Interest Payable 63 Due Other Governments 19,707 Loans/Advances Payable 0 Total Current Liabilities 44,249 Payable from Restricted Assets Accrued Bond Interest 37,722 Deposits Payable 4,835 Total Payable from Restricted Assets 42,557 Long-Term Liabilities Compensated Absence Payable 80,514 Notes/Bonds Payable 1,600,000 Total Long-Term Llabllltles 1,680,514 Deferred Credits Other Deferred Credits 161,250 Total Liabilities 1,928,570 Fund Equity Contributed Capital 4,002,936 Designated as Working Cash 0 Retained Earnings 5,811,035 Prior Period Adjustment 0 Total Fund Equity 9,813,971 TOTAL LIABILITIES AND FUND EQUITY $ 11,742,541 ---------See Accompanying Notes to Financial Statements . TOTALS GOLF 1988 1987 $ 19,410 $ 43,889 $ 36,630 0 63 63 605 20,312 16,000 273,890 273,890 281,323 293,905 338,154 334,016 0 37,722 41,250 0 4,835 4,950 0 42,557 46,200 8,941 89,455 81,839 0 1,600,000 1,785,000 8,941 1,689,455 1,866,839 0 161,250 164,896 302,846 2,231,416 2,411,951 0 4,002,936 4,014,537 100 100 100 134,602 5,945,637 5,709,551 0 0 0 134,702 9,948,673 9,724,188 $ 437,548 $ 12,180,089 $12,136,139 ----------------------------
L CITY OF PASCO, WASHINGTON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY YEAR ENDED DECEMBER 31, 1988, WITH COMPARISON TO DECEMBER 31, 1987 EQUIPMENT EQUIPMENT MEDICAU RENTAL-RENTAL-CENTRAL DENTAL TOTALS OPERATING REPLACMENT STORES INSURANCE 1988 1987 OPERATING REVENUES Charges for Services $ 1,581 $ 152,100 $ 9,782 $ 0 $ 163,463 $ 165,089 Miscellaneous 212,770 0 0 369,813 582,583 410,077 Total Operating Revenues 214,351 152,100 9,782 369,813 746,046 575,166 OPERATING EXPENSES Personal Services 45,712 0 0 0 45,712 46,287 Personnel Benefits 12,057 0 0 0 12,057 14,058 Supplies 92,875 0 7,691 0 100,566 94,098 Services and Charges 66,717 0 1,978 312,788 381,483 218,063 Depreciation 0 99,535 0 0 99,535 88,913 Total Operating Expenses 217,361 99,535 9,669 312,788 639,353 461,419 Net Operating Income (Loss) (3,010) 52,565 113 57,025 106,693 113,747 NON-OPERATING REVENUES (EXPENDITURES) Gains on Sales 0 0 0 0 0 6,426 Interest Income 1,748 43,226 0 0 44,974 31,445 Miscellaneous Revenue 3,403 0 0 11,026 14,429 1,945 Total Non-Operating Revenues (Expenses) 5,151 43,226 0 11,026 59,403 39,816 Net lncome(Loss) 2,141 95,791 113 68,051 166,096 153,563 Fund Equity, January 1 25,554 761,657 13,657 49,893 850,761 700,616 (Increase) Decrease in Reserves 0 0 (1,268) 0 (1,268) (3,418) Fund Equity, December 31 $ 27,695 $ 857,448 $ 12,502 $ 117,944 $1,015,589 $ 850,761 ----------------------======;::;;= ---------------See Accompanying Notes to Financial Statements. 8 1