HomeMy WebLinkAbout1989 ACFR..,
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CITY OF PASCO, WASHINGTON
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended
December 31, 1989
Prepared by the Finance Department
Daniel L. Underwood, Director of Finance
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November 8, 1990
To the Honorable Mayor and Members of the City Council of the
Ci ty of Pasco, Washington:
It's our pleasure to present this Comprehensive Annual Financial
Report (CAFR) of the City of Pasco for the fiscal year ended
December 31, 1989. Responsibilty for both the accuracy of the
presented data and the completeness and fairness of the
presentation, including all disclosures rests with the City. We
beleive the data, as presented, is accurate in all material
aspects; that it is presented in a manner designed to fairly set
forth the financial position and results of operation of the City
as measured by the financial activity of its various funds; and
that all disclosures necessary to enable the reader to gain
understanding of the City's financial activity have been included .
FORMAT OF REPORT (CAFR)
Local governmental accounting principles are primarily promulgated
by the Governmental Accounting Standards Board (GASB) and its
predecessor, the National Council on Governmental Accounting
(NCGA). The NCGA identified these principles in their issuance of
Statement 1, entitled "Governmental Accounting and Financial
Reporting Principles" which is a restatement of the principles of
"Governmental Accounting, Auditing, and Financial Reporting"
(GAAFR). These principles have been adhered to in the preparation
of this report.
The CAFR is composed of three distinct sections. The
Introductory Section includes the table of contents, this letter
of transmittal, a list of officials and officers, and the
governments organizational chart. The Financiai Section
includes the auditor's opinion, the general purpose financial
statements and the combining and individual fund and account group
financial statements and schedules. The Statisticai Section
includes selected financial and demographic information,generally
presented on a multiyear basis.
The Financial Section of this report has been structured so as to
represent a "reporting pyramid." The significance of the levels
of the pyramid are as follows:
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Pasco and the immediate surrounding area are frequently referred to
as the "Sunshine Capital" and compared by foreign vistors to
Southern California because of consistently mild weather. The
average annual precipitation is just over 7 inches and the mean
annual temperature is over 52 degrees. The average growing season
is 200 days and the sun shines more than 225 days per year.
The City has operated under the 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
ad.ministration of all aspects of City operations.
Councilmembers are elected every four years through city-wide
elections. The Council i s c omprised of seven members, one of whom
is selected by the members to serve as Mayor for a two-year term.
Councilmembers are part-time elected officials who exercise
legislative authority and determine matters of policy for the City .
The City provides a full range of services normally associated with
a municipality. These services include police and fire protection,
ambulance service, parks and recreational activities, street
maintenance and construction, planning and zoning, and general
administrative services. The City also owns and operates a
water/sewer system, a cemetery, and currently leases a full-length
18-hole golf course to a private organization.
LOCAL ECONOMY
The City of Pasco, as well as the entire Tri-Cities economy,
depends, in part, on the nuclear energy industry. The Hanford
Reservation, located across the river in Benton County, contains
various nuclear related projects, serving as a national energy
resource center. In 1987 the U.S. Department of Energy announced
the termination of the Basalt Waste Isolation Project (nuclear
waste related) and in 1988 placed the N-Reactor in "cold standby"
status based on a reduced need for plutonium production. The
direct job loss projections for the Tri-Cities area was to be
approximately 3,600 over a four to five year period.
Coupled with the layoffs at the Hanford area and the departure of a
major department store, the City was looking at the real
possibility of reduced retail sales tax revenues and lower property
tax values at a time when the tax rate is fixed at the statuatory
ceiling. Those circumstances were the foundation for several cost
cutting decisions, with (5) full time positions being eliminated.
During 1989, the City of Pasco's economy remained very stable.
Although jail costs did indeed increase in 1989, the revenue
decline did not materialize, thus resulting in an increase in the
ending fund balance.
CURRENT YEAR PROJECTS
During 1989 the City has completed several major projects.
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budget; some funds, such as capital projects, grants, and bond-
related funds, may operate on a continuing appropriation basis.
The Notes to the Financial Statements describe the fund types and
accounts groups and their individual operating characteristics.
Cities and counties of the State of Washington must comply with the
Budgeting, Accounting and Reporting System (BARS) prescribed by the
Office of the State Auditor. State law also provides for annual
independent audits by the Office of the State Auditor and requires
timely submission of annual financial reports to the State for
review.
GENERAL GOVERNMENT FUNCTIONS
Revenue and other financing sources for general governmental
operations (General Fund, Special Revenue Funds and Debt Service
Funds) totaled $11,095,114 in 1989, an increase of 4. 98% over
1988. The amount of revenues by source and the increase or
decrease over last year are presented in the following table.
sources
Taxes
Licenses & Permits
Intergovernmental Revenues
Charges for Services
Fines & Forfeitures
Special Assesments
Interest Income
Miscellaneous Revenue
Total Revenue
Operating Transfers
Amount
$ 6,347,844
109,619
1,585,284
779,557
307,327
708,527
320,420
225,155
% of
Total
57.21%
0.99
14.29
7.03
2.77
6.39
2.89
2 02
Increase
(Decrease)
Oyer 1988
$ 516,265
(4,813)
(52,874)
36,706
95,616
(423,080)
106,306
147,592
421,718
130.753
Total Revenue and Transfers
10,383,733
711,381
$11,095,114
93.59
6.41
100.00% $ 552,471
Expenditures and other uses for general governmental operations
totaled $10,137,616 in 1989, an increase of 2.38% over 1988. Uses
for major functions of the City are detailed below.
General Government
Security of Persons & Property
Physical Environment
Transpotation
Economic Environment
Mental and Physical Health
Culture and Recreation
Capital Outlay
Debt Service
Total Expenditures
Operating Transfers -Out
Total Expenditures and Transfers
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Amount
$1,209,106
3,699,543
377,061
766,857
381,777
79,904
932,839
178,787
1.421.479
9,047,353
1,082,174
$10,129,527
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Increase
% of (Decrease)
Total Oyer 1987
11. 94% $ 90,028
36.52 102,605
3. 72 21,880
7.57 78,879
3.77 (10,364)
0.79 ( 37 5)
9.21 31,947
1. 77 (239,817)
14.03 (399.177)
89.33 (324,394)
10.67 75,155
100.00% $ (249,239)
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DIRECT DEBT:
Councilmanic G.O.
Voted G.O.
L.I.D. Bonds
L.I.D. Notes
Bridge Equalization
Golf Redevelopment
Golf Residential Land
Golf Course Remodel
Golf Course Clubhouse Remodel
Public Safety Building
$1,335,000
135,000
2,705,000
102,955
67,025
265,801
43,400
218,300
18,920
11,880
LESS: Amount Available in Debt Service Fund
NET DIRECT DEBT
outstanding:
Ratio of Debt
to Assessed
valuation
NET
DIRECT DEBT $1,988,570 0.56%
4,903,281
2,914,711
$1,988,570
Debt Per
capita
$110 .15
Major expansion projects of the water/sewer system in the 1960's,
1970's, and 1980's have been funded mainly through bond issues. As
of December 31, 1989, the water/sewer utility had $1,405,000 of
outstanding bonded and non-bonded debt.
During the late 1970'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. Al though the
City, at one time, had in excess of $9 million in L.I.D. bonds
outstanding, at year-end in 1989 only $2,705,000 remained
outstanding.
GENERAL FIXED ASSETS
The general fixed assets of the City are those fixed assets used in
the performance of general governmental operations and exclude the
fixed assets of the Enterprise and Internal Service Funds, which
are accounted for in their respective funds. As of December 31,
1989, Pasco's general fixed assets amounted to $4,844,272. This
amount represents the original cost of the assets, since
depreciation is not recognized. Infrastructure, such as streets,
sidewalks, curbs and gutters, are not capitalized.
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CITY OF PASCO, WASHINGTON
PRINCIPAL OFFICIALS
AS OF DECEMBER 31, 1989
ELECTED OFFICIALS
MAYOR:
JOEJACKSON
COUNCILMEMBERS:
MICHAEL GARRISON
CHARLES KILBURY
CHRIS JENSEN
E. A. "DUKE" SNIDER
ED HENDLER
JOYCE DeFELICE
MANAGEMENT TEAM
ADMINISTRATION
LEGAL
FINANCE
FIRE
POLICE
PUBLIC WORKS
PARKS & RECREATION
COMMUNITY DEVELOPMENT
PURCHASING/PERSONNEL
MUNICIPAL COURT
1ERM
EXPIRES DISTRICT
12/31/91
12/31/93 2
12/31/93 3
12/31/93 4
12/31/91 5
12/31/93 AT-LARGE
12/31/91 AT-LARGE
Gary Crutchfield City Manager
Greg Rubstello City Attorney
Daniel Underwood Finance Director
James Chase Assistant Finance Director
Larry Dickinson Fire Chief
John Fifer Assistant Fire Chief
Donald Francis Police Chief
Dennis Kasparek Patrol Captain
Douglas Chambers M.C.U. Captain
Fred Anderson Administrative Captain
Chrisi Roach P.S.S. Manager
James Ajax Public Works Director
Damis Wright City Engineer
Harold Posthuma Wastewater Superintendant
Marvin Ricard Filter Plant Superintendant
Richard Erickson Parks & Recreation Director
Paul Whitemarsh Recreation Supervisor
Arthur Finke Senior Center Coordinator
David McDonald Community Development Director
Webster Jackson Purchasing /Personnel Officer
Dorothy Nikolaisen Municipal Court Clerk
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J l ) ) ) J ) ] ) ) ] FIDUCIARY ACCOUNT GROUPS TOTALS GOVERNMENTAL FUND TYPES PROPRIETARY FUI\ID TYPES FUND TYPES GENERAL GENERAL (MEMORANDUM ONL :!} SPECIAL DEBT CAPITAL INTERNAL TRUST AND FIXED LONG-TERM GENERAL REVENUE SERVICE PROJECTS ENTERPRISE SERVICE AGENCY ASSETS DEBT 1989 1988 LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES: Warrants Payable $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 170,336 $ 0 $ 0 $ 170,336 $ 273,821 Accounts Payable 147,375 75,046 0 7,487 59,516 8,769 13,409 0 0 311,602 252,250 Matured Bonds Payable 0 0 55,000 0 0 0 0 0 0 55,000 105,000 Matured Interest Payable 885 0 6,933 0 63 0 0 0 0 7,881 15,022 Retainage Payable 0 7,534 0 26,938 0 0 0 0 0 34,472 17,695 lnterfund Loans Payable (Note 13) 546,421 0 152,067 0 0 0 0 0 0 698,488 437,685 Due to Other Governmental Units 15,340 1,112 0 0 20,357 14 32,746 0 0 69,569 71,525 Accrued Interest Payable 0 0 803 0 33,719 0 0 0 0 34,522 38,525 Accrued Employee Benefits (Note 1) 0 0 0 0 79,051 12,635 0 0 362,470 454,156 438,590 Revenues Collected in Advance 16,000 0 0 0 0 2,185 0 0 0 18,185 0 Deposits Payable 769 11,007 0 0 6,985 1,534 0 0 0 20,295 18,132 VI Loans/Advances Payable 0 0 0 0 0 0 0 0 0 0 0 G. 0. Bonds Payable (Nole 10) 0 0 0 0 1,405,000 0 0 0 1,470,000 2,875,000 3,280,000 L.I.D. Bonds Payable (Note 10) 0 0 0 0 0 0 0 0 2,705,000 2,705,000 3,370,000 Noles Payable (Note 10) 0 0 0 0 0 0 0 0 10,000 10,000 10,000 Other Long Term Liabilities 0 0 0 0 186,750 0 0 0 78,905 265,655 97,531 Deferred Revenue 637,961 25,384 637,241 9,627 171,541 0 0 0 0 1,481,754 2,171,899 Deferred Compensation (Note 8) 0 0 0 0 0 0 2811823 0 0 2811823 217,050 Total Liabilities 1,364?51 120,083 852,044 44052 11962,982 25137 498,314 0 41626,375 91493,738 10,814,725 EQUITY AND OTHER CREDITS: Investment in General Fixed Assets 0 0 0 0 0 0 0 4,844,272 0 4,844,272 4,286,648 Contributed Capital (Nole 14) 0 0 0 0 3,922,163 0 0 0 0 3,922,163 4,002,936 Retained Earnings: (Note 14) Reserved 0 0 0 0 0 5,628 0 0 0 5,628 5,728 Unreserved 0 0 0 0 6,287,795 1,202,630 0 0 0 7,490,425 6,955,598 Fund Balances (Deficits): (Nole 14) Reserved 4,650 352,749 6,174 (5,089) 0 0 1,394,283 0 0 1,752,767 1,932,728 Unreserved-Designated 12,869 0 0 0 0 0 0 0 0 12,869 12,434 Unreserved-Undesignaled 660,041 1,424,953 2,908,537 0 0 0 0 0 0 4,993,531 4,538,870 Total Equity and Other Credits 677,560 1,777,702 21914,711 (5,089} 10,209,958 11208,258 1,394,283 4,8441272 0 2310211655 21,734,942 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $2,042,311 $1,897,785 $3,766,755 $ 38,963 $12,172,940 $1,233,395 $1,892,597 $4,844,272 $4,626,375 $32,515,393 $32,549,667 .. ___ :;:;===== ====:.:===== -------------------=--------------= --=------=----------======• ===z==== ========== See Accompanying Notes to Financial Statements
Exhibit 2
CITY OF PASCO, WASHINGTON
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED DECEMBER 31, 1989 (WITH COMPARATIVE TOTALS FOR 1988)
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
REVENUES
Taxes $5,087,217 $ 743,075 $ 517,552 $ 0
Licenses & Permits 109,489 130 0 0
Intergovernmental Revenue 696,532 888,752 0 324,332
Charges for Services 651,642 127,915 0 0
Fines & Forfeitures 307,327 0 0 0
Special Assessments 0 0 708,527 0
Interest 150,016 113,706 56,698 0
Miscellaneous Revenue 193,654 23,452 669 0
Total Revenues 7,195,877 1,897,030 1,283,446 324,332
EXPENDITURES
Current:
General Government 1,209,106 0 0 0
Security of Persons & Property 3,695,707 3,836 0 0
Physical Environment 282,944 94,117 0 0
Transportation 0 766,857 0 0
Economic Environment 70,649 311,128 0 0
Mental & Physical Health 79,904 0 0 0
Culture & Recreation 726,625 206,214 0 0
Capital Outlay 94,709 84,078 0 1,025,599
Debt Service
Principal 168,627 0 725,000 0
Interest 113,970 0 413,882 0
Total Expenditures 6,442,241 1,466,230 1,138,882 1,025,599
Excess (Deficiency) of Revenues
Over Expenditures 753,636 430,800 144,564 (701 ,267)
OTHER FINANCING SOURCES (USES)
Disposition of Fixed Assets 7,380 0 0 0
Operating Transfers -In (Note 13) 0 244,691 466,690 533,034
Operating Transfers -(Out) (Note 13) !88,381 l !s21,103l !466,s9ol !153,623l
Total Other Financing Sources (Uses) !81.001 l !2a2,412i 0 379,411
Excess (Deficiency) of Revenues and Other
Financing Sources over Expenditures and
Other Financing Uses 672,635 148,388 144,564 (321,856)
Fund Balance, January 1 248,464 1,557,893 2,770,147 316,498
Prior Period Adjustment 0 (8,579) 0 269
Residual Equity Transfer -In (Note 13) !243,539l 80,000 0 0
Fund Balance, December 31 $ 677,560 $1,777,702 $ 2,914,711 ($ 5,089)
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See Accompanying Notes to Financial Statements.
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SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds
of specific revenue sources (other than major capital projects,
and trusts) and are segregated into individual funds to insure
that expenditures are made only for qualified purposes.
City Street Fund -responsible for the maintenance of all City
streets, traffic control devices, and storm sewers. Primary
revenue sources include state-shared revenue and a portion of
the City's sales tax.
Arterial Street Fund -accounts for the development of
arterial streets (main thoroughfares) in the City. Main revenue
sources are state-shared revenue, and federal and state grants.
Street Overlay Fund -responsible for the maintaining of City
streets that have previously been upgraded through Local
Improvement District assessments.
Block Grant Fund -responsible for the administration of the
Federal Community Development Block Grant Program.
King Community Center Fund -accounts for revenue and
expenditures generated and spent on Community Center
activities.
Contingency Fund -this fund accounts for revenue reserved
by the City Council to meet emergency or unforeseen
circumstances. No expenditures can be made without specific
Council approval.
Cemetery Fund -accounts for revenues and expenditures to
run the City-owned cemetery. Revenue is derived through
fees.
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Athletic Program Fund -accounts for user fees and related
expenditures for specific team sports.
Senior Center Fund -accounts for grants, donations, and City
and County contributions to support senior citizen activities for
seniors throughout the County.
Old Bridge Demolition Fund -accounts for federal grant
money and local matching funds for the demolition of the old
intercity bridge linking Pasco and Kennewick.
Boat Basin Fund -accounts for revenue and expenditures
related to the City's boat marina. The marina was leased from
the Army Corps of Engineers and subleased to a private
concern for operational purposes.
Demolition and Repair Fund -responsible for the
abatement of nuisances, such as condemned buildings and
public eyesores not remedied by owners.
Park Fund -accounts for fees charged to new developments
to offset future development of parks within the specific areas
assessed.
Capital Improvement Fund -accounts for real estate excise
tax revenue and other sources as deemed necessary by the
Council, to fund capital projects.
Stadium/Convention Center Fund -accounts for
hotel/motel tax money that may be spent only on a stadium,
convention center, or other qualified tourist promoting
activities.
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DEBT SBRVICB FUNDS
Debt Service Funds are used to account !or the accumulation
of resources and payment of general obligation bond principal
and interest from governmental resources and special
assessment bond principal and interest from special
assessment levies when the government is obligated in some
manner !or the payment.
1971 G.O. Bridge Bond -accounts !or special levy property
tax to meet debt service requirements on bonds issued !or the
construction of the Intercity Cable Bridge linking Pasco and
Kennewick.
Local Improvement Districts -project financing is
ultimately provided through the issuance of L.I .D. bonds. Bond
principal and interest payments are paid with moneys
provided through assessments made against the specifically
benefited properties.
L.I.D. Guaranty Fund -responsible !or the guaranteeing of
payment of bonds, coupons, and warrants issued against any
City local improvement district created after the creation of the
Guaranty Fund.
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