HomeMy WebLinkAbout2001 ACFRr
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CITY OF PASCO
TABLE OF CONTENTS
Year Ended December 31, 2001
INTRODUCTORY SECTION
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Directory of City Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Directory of Management Team .. . .. ... ......... .. ... . .. . .. ... ... . ...... ...... .... 13
Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
FINANCIAL SECTION
Auditor's Opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
COMBINED STATEMENTS-Overview (Exhibits 1 -5)
(General Purpose Financial Statements)
Combined Balance Sheet -All Fund Types and Account Groups . . . . . . . . . . . . . . . 18
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
-All Governmental Fund Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual -General and Special Revenue Funds 24
Combined Statement of Revenues, Expenses and Changes in Retained
Earnings Balance/Fund Balances -All Proprietary Fund Types and
Similar Trust Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Combined Statement of Cash Flows
All Proprietary Fund Types and Similar Trust Funds . . . . . . . . . . . . . . . 28
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
COMBINING AND INDIVIDUAL FUNDS AND ACCOUNT GROUPS
(Supplemental Financial Statements):
General Fund
Balance Sheet
(Exhibits A-1 to A-4)
Statement of Revenues, Expenditures and Changes in Fund Balance ........... .
Statement of Revenues -Budget to Actual ......................................... .
Statement of Expenditures -Budget to Actual ................................ .
Special Revenue Funds (Exhibits B-1 to B2)
Combining Balance Sheet ........................................................... .
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Budget and Actual ......................................... .
63
64
65
66
74
78
TABLE OF CONTENTS, continued
Debt Service Funds (Exhibits C-1 to C-3)
Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 91
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 92
Capital Projects Funds (Exhibits D-1 to D-2)
Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 97
Enterprise Funds (Exhibits E-1 to E-4)
Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Combining Statement of Revenues, Expenses and Changes in Fund Equity ...... 102
Combining Statement of Revenues, Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Internal Service Funds (Exhibits F-1 to F-3)
Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Combining Statement of Revenues, Expenses and Changes in Fund Equity ...... 107
Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Trust and Agency Funds (Exhibits G-1 to G-10)
Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 0
Cemetery Non-Expendable Trust
-Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
-Statement of Revenues, Expenditures and Changes in Fund Balances.. 113
-Statement of Cash Flows . . . . . . . . . . . .. . .. . .. . .. . .. . . . . .. . . . . . . . .. . .. . . . . .. . . 114
Cemetery Pre-Need Expendable Trust
-Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
-Statement of Revenues, Expenditures and Changes in Fund Balances ... 116
-Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Fire Pension Trust
-Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
-Statement of Revenues, Expenditures and Changes in Fund Balances .. 119
-Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
General Fixed Assets Account Group (Exhibits H-1 to H-3)
Comparative Statement of General Fixed Assets -By Source . . . . . . . . . . . . . . . 122
Schedule of General Fixed Assets -By Function and Activity . . . . . . . . . . . . . . . 123
Schedule of Changes in General Fixed Assets -By Function and Activity . . . . . . 124
11
hall, meeting rooms, a concession area, and administrative offices. Additionally, an
adjoining 15-field soccer complex 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 S3.5
million multi-field softball complex in the TRAC area. The City is currently
preparing plans to light the fields. In 2001, the push for additional tourism
continued. A Pavilion was constructed at the TRAC facility that adds an ice rink and
additional rental space; and, the City owned sun Willows Golf course Clubhouse
was completely renovated.
Broadmoor Park, located a few short miles from TRAC, was completed in August of
1995. This regional discount factory outlet mall has 24 shops and 110,000 square
feet of retail space. Also located in Pasco is the Northwest Regional Autoplex, a
multi-million dollar auto dealership, representing nine major automobile
manufacturers.
SUMMARY OF CURRENT AND FUTURE ECONOMIC OUTLOOK
The economy both nationally and locally has been a major news topic for the past
several years. Incidents that have negatively impacted the economy are: the
slowdown in the economy particularly in the manufacturing sector; Federal
Reserve interest rate cuts to create a soft economic landing; the large downward
adjustments in the stock market especially in the high-tech stock sector; corporate
bankruptcies, layoffs and relocations; September 11th terrorist attacks; and
soaring energy prices.
For many years the Northwest has enjoyed relatively cheap electricity as compared
to the rest of the nation due to the proximity of the Bonneville Power
Administration (BPAL However in 2001, the era of cheap electricity in the
Northwest came to an end due to one of the worst droughts in the past so years.
Energy demands outstripped supply and federal regulators required the BPA
revise its rate structure. Locally, this has meant a 38% -40% increase in electricity
costs to residents in Franklin and Benton counties starting in the fall of 2001.
While on a national level the country has been experiencing a recession with
massive layoffs, bankruptcies, and decreased consumer spending, the Tri-Cities
area has managed to continue its upward growth trend.
Bechtel National, Inc. and CH2M Hill Hanford Group, Inc. are in charge of designing
and building two plants to start vitrifying Hanford's radioactive tank wastes into
glass logs. The first glass logs are scheduled to be produced in 2007. Bechtel's
contract with the Department of Energy <DOE> calls for the plants· shakedown
phase to be completed and operating at full capacity by 2011. Ten percent of this
highly radioactive waste is targeted to be glassified by 2018. The Hanford
Glassification contract with Bechtel is a long term DOE Project that is anticipated to
bring in up to 4,000 construction jobs between 2002 and 2006. An additional 2,000
white-collar employees will be hired during the design phase starting in 2002. This
should be reduced to approx. 1,100 by 2005. The number of white-collar jobs
should remain steady until 2009 when it is expected to shrink to the number of
engineers and operators needed to run the plants on a regular basis.
4
• complete construction of Phase I of the Rivershore Enhancement Program.
• Develop a definitive funding strategy and program to replace the Lewis
street Underpass and develop an associated project impact plan.
• Develop a Downtown Revitalization Action Plan with the Pasco Downtown
Development Association. The Pasco downtown area continues to struggle
in its effort to transition from the commercial core it was 30 years ago to
the stable and healthy business area it should be today. It is the City's intent
to provide for an experienced downtown revitalization consultant to aid
the owners of properties and businesses as well as the City in defining a
common and realistic action plan towards revitalization of the downtown
area.
• Sponsor the design of and obtain adequate state financial funding
commitments for SR-395 to Argent connection.
• complete design plans and cost estimates for the Fourth Avenue and East
Lewis Gateway projects.
• Define and implement an appropriate Neighborhood Rehabilitation
Demonstration Project. several small neighborhoods within the city contain
pockets of decay in the form of substandard structures, declining property
values and a general trend toward disinvestments. As a demonstration
project using various federal and state resources, one of these pockets of
decay should be selected for implementation of an appropriate action plan
to arrest the decay and restore a trend of positive investment in the
surrounding neighborhood.
• Implement a Downtown Fac;ade Improvement Program whereby financial
assistance is used to encourage equal or greater private investment in
improving building facades within the downtown area.
• Adopt an Aquatic Recreation Action Plan. The three public pools owned
and operated by the City have reached the point of needing complete
renovation or replacement. This objective intends to develop a definitive
action plan to provide contemporary swimming facilities for Pasco
residents.
• complete a market analysis of apartments. The last apartment complex
built in the City of Pasco occurred in 1978. The absence of contemporary
quality apartments in the City makes it difficult for young professionals and
others of moderate or higher incomes to reside in Pasco. It is the intent of
the City to sponsor a market analysis and solicit the private sector to invest
in quality, contemporary apartment projects in the city.
• Determine the location and design, and then construct a pedestrian
overpass of SR-395 to aid in pedestrians crossing safely.
6
Ill
Increase Percent of
2001 Percent of <Decrease> Increase
sources of Funds Revenues Total from 2000 !Decrease>
Taxes:
Property $ 3,112,653 13.71% s 217,151 7.50%
Sales & use 5,625,774 24.79% 509,422 9.96%
Utility 3,807,585 16.77% 27,837 0.74%
Other 533,942 2.35% (161,586) (23.23%)
Licenses & Permits 1,015,381 4.47% 220,704 27.77%
I ntergovern men ta I 932,859 4.11% 92,662 (11.03%)
Charges for services 1,915,019 8.44% 249,588 14.99%
Fines & Forfeitures 481,435 2.12% 78,280 19.42%
Investment Earnings 251,146 1.11% 40,005 18.97%
Miscellaneous Revenues 498,960 2.20% 129,436 35.03%
Operating Transfers In 34,000 0.15% (141,915) (80.67%)
Other Financing sources 4!489!498 19.78% 4!228!052 1618.29%
522,698,252 55,489,636
The following table presents a summary of general government expenditures
!General Fund, Special Revenue Funds and Debt service Funds> and other financing
uses for 2001 and the amount and percentage of increases and decreases in
relation to prior year revenue.
Increase Percent of
2001 Percent of <Decrease> Increase
use of Funds Expenditures Total from 2000 !Decrease>
General Government S 3,133,298 15.06% s 287,669 10.11%
Public Safety 8,417,803 40.46% 113,250 1.36%
Physical Environment 750,329 3.61% (56,923) (7.05%)
Economic Environment 269,308 1.29% (21,759) (7.48%)
Mental & Physical Health 6,892 0.03% 3,288 91.23%
Culture & Recreation 1,848,657 8.89% 210,168 12.83%
capital outlays 670,386 3.22% 126,816 23 .33%
Debt service 5,013,504 24.10% 4,058,936 425.21%
Operating Transfers out 695!280 3.34% (149!053) (17.65%)
S20,805,457 54,572,392
The analysis of revenues and expenditures is very important, but must also be
accompanied by an analysis of fund balance. Fund balance is the accumulated
excess of revenues and other financing sources over expenditures and other
financing uses.
8
The City administers a cemetery Trust Fund for the perpetual care and
maintenance of gravesites. Interest earnings from trust assets are transferred out
to the cemetery Fund, where the maintenance expenditures are paid.
The City also administers a cemetery Pre-Need Trust Fund for the pre-payment of
cemetery goods such as liners and markers. Monies from this fund are transferred
to the cemetery Fund when expenses are incurred. Interest earnings from the
expendable trust assets are used to offset any increase in the cost of goods
between the time of payment and the purchase of goods. Excess interest
earnings are transferred to the cemetery Fund to defray maintenance costs.
DEBT ADMINISTRATION
At December 31, 2001, the City had a number of debt issues outstanding. These
issues include $16,618,571 of general obligation bonds, both voted and non-voted,
$12,600,000 of revenue and revenue refunding bonds, and $1,474,075 of special
assessment bonds. The City's general obligation bonds have maintained an Aaa
rating from Moody's Investor service and an AAA rating from standard & Poor's
Rating Group and Fitch Investors service, Inc. Each are backed with a municipal
bond insurance policy by AMBAC Indemnity corporation. Moody's rated the City's
most recent water and sewer revenue bonds A3.
over the last several years the City has obtained Public works Trust Fund loans to
help finance several major construction projects. These loans have been financed
at interest rates of 1 or 2%. The outstanding balance of these four loans totals
$4,487,904 at December 31, 2001. The City is also utilizing the state Revolving Loan
Fund to help finance the expansion of the sewer treatment plant. The City had
drawn S22,726,011 as of December 31, 2001. The outstanding balance of this loan is
$22,838,935. These loans each have a term of 20 years.
CASH MANAGEMENT
The City's investment policy is to minimize credit and market risk while
maintaining a competitive yield on its portfolio. City funds are invested by fund
or on the basis of pooled cash. All available funds not individually invested are
invested as one source leading to higher interest yield than if invested on an
individual fund basis. The cash flow needs of the City require our investments to
be relatively short term in nature. The majority of idle cash is deposited with the
State Treasurer in the Local Government Investment Pool. A smaller portion of the
portfolio is invested in long term (up to five yearsl u.s. government securities. The
entire investment portfolio is approximately $26,411,682.
RISK MANAGEMENT
The City has an active risk management program that utilizes a combination of in-
house staff and third party administrators to manage the City's risk programs. The
City utilizes self-insurance in several areas. The Medical-Dental Fund receives
revenues from other funds based on the medical/dental premiums contributed by
the City for each full time employee. Medical and dental claims are paid from this
fund along with administrative costs to Northstar Administrators (a subsidiary of
10
DIRECTORY OF CITY OFFICIALS
As of December 31, 2001
ELECTED OFFICIALS
MAYOR
Michael Garrison
COUNCILMEMBERS
Eileen Crawford
Rebecca M. Francik, Mayor Pro Tern
Joe Jackson
Charles D. Kilbury
Tom Larsen
Carl R. Strode
ADMINISTRATIVE OFFICIALS
CITY MANAGER
Gary Crutchfield
PUBLIC WORKS DIRECTOR
Robert J. Alberts
LENGTH OF
SERVICE
14
1
5
12
11
1
9
TERM
EXPIRES
12/31/05
12/31/05
12/31/03
12/31/03
12/31/03
12/31/05
12/31/03
LENGTH IN YEARS OF
POSITION SERVICE
17 23
7 7
ADMISTRATIVE & COMMUNITY SERVICES DIRECTOR
Stanley R. Strebel 3 3
COMMUNITY DEVELOPMENT DIRECTOR
Richard J. Smith 7 7
FIRE CHIEF
Gregory L. Garcia 7 7
POLICE CHIEF
Denis W. Austin 6 6
MUNIC~ALCOURTJUDGE
Mary B. Ramirez 15 15
12
THIS PAGE INTENTIONALLY LEFT BLANK
16
MCAC NO. 0292
CITY OF PASCO, WASHINCTON Exhibit 1
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT CROUPS
As Of oecember 31, 2001 <With comparative Totals For 2000>
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
ASSETS:
cash and Imprest cash s 4,247,242 s 4,077,712 s 1,633,426 s SSS,815
cash with Fiscal Agent 50,000
Investments !Note 3)
Receivables !net>:
Taxes 803,426 50,178 46,953
Accounts 96,916 273,653
Special Assessments 4,S73,175
Interest
Grants 12,245
Loans/Advances Receivable 438,535 10,084
lnterfund Loans Receivable (Note 13> 1,828,100
Inventories, at cost !Note 1>
Prepaid Expenses
Restricted Assets: !Note 1)
cash and Investments
Fixed Assets !Note 6>
OTHER DEBITS:
unamortized Debt Discount
Amount Available in Debt Service Funds
Amount to be Provided for Retirement of Long Term Debt
TOTAL ASSETS s 7,025,684 s 4,852,323 s 6,263,638 s 585,815
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES:
Outstanding Checks Payable s 0 s 0 s 0 s 0
Accounts Payable 446,819 180,785 15,551 7,052
Matured Bonds Payable 50,000
Matured Interest Payable
Retainage Payable 25,421 14,171
lnterfund Loans Payable !Note 13> 1,955,000 80,200
Due to Other Governmental Units 9,976 6,160
Accrued Interest Payable 10,127
Accrued Employee Benefits !Note 1)
Deposits Payable 219,260 6,023 12,036
G. o. Bonds Payable !Note 10>
Revenue Bonds Payable !Note 10>
Assessment Bonds Payable 1,466,975
Other Long Term Liabilities
Unamortized Discount on Refunding Debt
Unclaimed Property 1,000
Deferred Revenue 398,395 1,167 3,999,264
Total Liabilities 1,125,450 2,174,556 5,572,117 33,259
EQUITY AND OTHER CREDITS:
Investment in General Fixed Assets
contributed Capital !Note 14)
Retained Earnings: !Note 14>
Reserved
Reserved for Employees' Pension benefits
Unreserved
Fund Balances : !Note 14)
Reserved 1,839,865 277,129 691,521 552,556
Unreserved·Undesignated 4,060,369 2,400,638
Total Equity and Other credits 5,900,234 2,677,767 691 ,521 552,556
TOTAL LIABILITIES, EQUITY AND OTHER CREDITS s 7,025,684 s 4,852,323 s 6,263,638 s 585,815
see Accompanying Notes to Financial Statements.
18
MCAG NO. 0292
CITY OF PASCO, WASHINCTON
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
As Of December 31, 2001 !With comparative Totals For 20001
TOTALS
<Memorandum Only)
2001 2000
ASSETS:
cash and Imprest cash s 22,866,983 s 19,178,803
cash with Fiscal Agent 75,000 275,000
Investments <Note 3l 3,052,728 2,139,505
Receivables <netJ:
Taxes 900,557 679,583
Accounts 867,017 1,167,436
Special Assessments 4,573,175 6,109,788
Interest 234,967 191,373
Grants 12,245 244,222
Loans/Advances Receivable 694,981 479,658
lnterfund Loans Receivable <Note 13l 2,035,200 1,771,360
Inventories, at cost <Note 1l 189,534 217,551
Prepaid Expenses 14,146 11,299
Restricted Assets: <Note 1l
cash and Investments 1,219,612 1,265,820
Fixed Assets <Note 6l 98,850,911 96,878,893
OTHER DEBITS:
unamortized Debt Discount 236,935 251,312
Amount Available in Debt service Funds 110,153 77,653
Amount to be Provided for Retirement of Long Term Debt 18,887,651 15,487,821
TOTAL ASSETS s 154,821,795 s 146,427,077
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES:
Outstanding Checks Payable s 127,622 s 165,349
Accounts Payable 854,733 661,577
Matured Bonds Payable 75,000 275,000
Matured Interest Payable 10,127
Retainage Payable 115,722 132,290
lnterfund Loans Payable <Note 13) 2,035,200 1,771,360
Due to Other Governmental Units 231,417 190,743
Accrued Interest Payable 434,995 419,834
Accrued Employee Benefits <Note 1l 1,232,979 1,150,445
Deposits Payable 310,919 191,419
G.D. Bonds Payable (Note 10l 16,430,000 14,310,000
Revenue Bonds Payable <Note 10l 12,600,000 12,220,000
Assessment Bonds Payable 1,466,975 1,165,000
Other Long Term Liabilities 29,485,278 28,982,820
unamortized Discount on Refunding Debt (342,230) (441,425)
unclaimed Property 10,631 1,056
Deferred Revenue 4,686,970 6,685,470
Total Liabilities 69,756,211 67,891 ,065
EQUITY AND OTHER CREDITS:
Investment in General Fixed Assets 26,663.420 26,672,604
contributed capital <Note 14l 15,019,783 14,571,184
Retained Earnings: <Note 14l
Reserved 983,093 644,311
Reserved for Employees' Pension benefits 3,514,981 2.582,082
Unreserved 29,062,279 24,480,076
Fund Balances : !Note 14l
Reserved 3,361,071 4,240,826
unreserved-Undesignated 6,461,007 5,344,929
Total Equity and Other credits 85,065,634 78,536,012
TOTAL LIABILITIES, EQUITY AND OTHER CREDITS s 154,821,845 s 146,427,077
see Accompanying Notes to Financial statements.
20
MCAC NO. 0292
CITY OF PASCO, WASHINGTON
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANCES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
For The Year Ended December 31, 2001 !With Comparative Totals For 2000)
GENERAL
REVENUES
Taxes s 13,079,954
Licenses & Permits 1,015,381
Intergovernmental Revenue 932,859
Charges for services 1,915,019
Fines & Forfeitures 481,435
Special Assessments
Interest 251,146
Miscellaneous Revenue 498,960
Total Revenues 18,174,754
EXPENDITURES
current:
General Government 3,133,298
security of Persons & Property 8,417,803
Physical Environment 750,329
Transportation
Economic Environment 269,308
Mental & Physical Health 6,892
Culture & Recreation 1,848,657
capital outlay 670,386
Debt service
Principal 4,538,136
Interest 475,368
Total Expenditures 20,110,177
Excess <Deficiency! of Revenues over Expedltures (1,935,4231
OTHER FINANCING SOURCES (USES!
Disposition of Fixed Assets 231,305
Insurance Recoveries 1,457
Proceeds of General L·T Debt 4,248,876
Loan Repayment 7,860
Operating Transfers -In !Note 13> 34,000
Operating Transfers • !Outl !Note 131 (695,280)
Total Other Financing sources !UsesJ 3,828,218
Excess <Deficiency> of Revenues and Other Financing
sources over Expenditures and other Financing uses 1,892,795
Fund Balances, January 1 3,896,941
Prior period adjustments (160,242)
Equity Transfers ln/!Out> 270,740
Assessment Adjustment for Foreclosures
Fund Balances, December 31 s 5,900,234
see Accompanying Notes to Financial Statements.
22
Exhibit 2
SPECIAL DEBT
REVENUE SERVICE
s 1,425,043 s 499,752
7,778
1,497,951
1,088,875
25,529
1,097,701
142,361 322,270
352,601
4,540,138 1,919,723
1,171,104
235,848 51
685,779
123,590
806,657
1,043,446
108,793 205,000
125,752 357,045
4,300,969 562,096
239,169 1,357,627
17,558 (687)
100,958
S98,211
(213,9001 (1,285,5901
502,827 (1,286,277)
741,996 71,350
1,652,930 829,721
282,841
(210,654)
1,104
s 2,677,767 s 691 ,521
MCAG NOO292
CITY OF PASCO, WASHINGTON
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
· BUDGET AND ACTUAL
GENERAL AND SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2001
REVENUES
Taxes
Licenses & Permits
lntergovermental Revenue
Charges for services
Fines & Forfeitures
Interest
Miscellaneous
Total Revenues
EXPENDITURES
current
General Government
security of Persons & Property
Physical Environment
Transportation
Economic Environment
Mental & Physical Health
Culture & Recreation
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess <Deficiency> of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds of General L-T Debt
Disposition of Fixed Assets
Loan Repayments
Insurance Recoveries
Operating Transfers/lnterfund Loans -In !Note 13)
Operating Transfersilnterfund Loans -!Out> !Note 13>
Total Other Financing sources !Uses>
Excess <Deficiency> of Revenues and Other Financing
sources over Expenditures and Other Financing uses
Fund Balances, January 1
EQuity Transfer
Prior period adjustment
Fund Balances, December 31
see Accompanying Notes to Financial statements.
BUDGET
s 11,528,485 s
670,100
711,200
1,8111,221
381,700
173,000
111111,300
15,723,006
3,312,4110
8,1111,785
776,690
278,050
11,000
1,8211,180
706,400
11,583,137
570,697
20,170,379
(11,4117,373)
11,175,000
11,000
911,000
(712,280)
3,567,720
(879,653)
1,500,000
s 620,3117 s
24
Exhibit 3
GENERAL FUND
VARIANCE
Favorable
ACTUAL !Unfavorable>
13,D79,9511 s 1,551,469
1,015,381 3115,281
932,859 221,659
1,915,019 100,798
1181,435 99,735
251, 1116 78,1116
1198,960 511,660
18,1711,7511 2,1151,7118
3,133,298 179,1112
8,1117,803 (303,018)
750,329 26,361
269,308 8,7112
6,892 (2,892)
1,8118,657 (211,477)
670,386 36,0111
11,538,136 115,001
1175,368 95,329
20,110,177 60,202
(1,935,423) 2,511,950
11,2118,876 73,876
231,305 220,305
7,860 7,860
1,457 1,1157
311,000 (60,000)
(695,280) 17,000
3,828,218 260,1198
1,892,795 2,772,11118
3,896,9111 2,396,9111
270,7110 270,7110
(160,2112) (160,2112)
5,900,2311 s 5,279,888
MCAC NOO292
CITY OF PASCO, WASHINGTON
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANCES IN RETAINED EARNINGS/FUND BALANCES·
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS
For The Year Ended December 31, 2001 !With comparative Totals For 2000>
PROPRIETARY FUND TYPES
INTERNAL
ENTERPRISE SERVICE
OPERATING REVENUES
Sales s 8,881,104 s 0
Charges for services 149,708 88,995
lnterfund Charges 1,849,676
Intergovernmental Revenue
Total Operating Revenues 9,030,812 1,938,671
OPERATING EXPENSES
Personnel services 1,168,814 115,742
Personnel Benefits 305,104 1,141,983
Supplies 285,274 221,979
services and Charges 1,992,208 305,900
Taxes on Revenues 1,201,948
Depreciation 2,661,489 275,807
Total Operating Expenses 7,614,837 2,061,411
Operating Income <Loss> 1,415,975 (122,740)
NON OPERATING REVENUE (EXPENSES!
Gain on Sale of Assets 7,552
Interest Income 476,925 88,S48
Interest Expense (1,748,830)
Misc. Non-Operating Revenue 61,229
Farmland Rental 479,693
Loan Repayment Received/Ossuedl 7,900
Amortization Expense (4S,743l
Total Non-Operating
Total Non-Operating Revenues !Expenses! 1776,726) 104,000
Income lLossl Before Operating Transfers 639,249 (18,740)
Operating Transfers -In/lout> <Note 131
Net Income <Lossl 639,249 (18,740)
Retained Earnings/Fund Balance, January 1 24,710,737 4,551,061
Assets Purchased in Other Funds 141,714
Residual Equity Transfer-in/!Outl (763,490)
Amortization of contributed capital 456,156
Equipment Purchase for Equipment Rental
Prior Period Adjustment (80,017) 261
Retained Earnings/Fund Balance, December 31 s 24,962,635 s 4,674,296
see Accompanying Notes to Financial Statements.
26
Exhibit 4
FIDUCIARY
FUNDS
NON·
EXPENDABLE
TRUST
s 0
18,145
18,145
18,145
9,995
9,995
28,140
(9,448)
18,692
228,679
1158)
s 247,213
MCAC. NO. 0292
CITY OF PASCO, WASHINC.TON Exhibit 5
COMBINED STATl!MENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPl!S AND SIMILAR TRUST FUNDS
For The Year Ended December 31, 2001 !With comparative Totals For 2000>
PROPRIETARY FUND TYPES FIDUCIARY FUNDS
NON·
INTERNAL EXPENDABLE
ENTERPRISE SERVICE TRUST
cash Flows Form Operating Activities:
cash received from customers and users s 9,253,248 s 1.938,531 s 16,990
cash paid to suppliers and emDIOYees (1,718,580) (1,475,5981
cash paid for other operating expenses (1,957,554) (305,819)
cash paid for taxes on revenues (1,189,009)
Net cash Provided Iused> By Operating Activities 4,388,105 157,114 16,990
cash Flows From NOn-<:apltal Financing Activities:
Prior year correction 180.017) 261 (158)
Equipment Purchase for Equipment Rental
Non-operating revenue 540,922
lnterfund transfers · In11ouo 7,900 (9,448)
Net cash Provided By Non-Cap. Financing Activities 460,905 8,161 (9,606)
cash Flows From Financing Activities:
Additional Loan ReceiDts & LOan Repayments
Proceeds from State Grant
Proceeds from sale of assets 15,617
Proceeds from Bonds
Proceeds from Loan 1,326,719
Purchase of fixed assets (3,385,8341
construction work-in-Process 11,495,0131
Principal payments• bonds (615,000)
Principal payments• loans & leases (1,075,590)
interest paid 11 ,630,224)
Residual Equity Transfer-Out 1763.490)
Capital contributions and advances 904,756
Net cash Provided !Used> By Financing Activities (6,733,676) 15,617
cash Flows From Investing Activities:
Principal received on loan & leases receivable 38,713
Monies Invested
Interest received 476,925 88,548 9,995
Net cash Provided BY Investing Activities 515,638 88,548 9,995
Net Increase !Decrease, in cash (1 ,369,028) 269,440 17,379
cash, January 1 11 ,857,798 2,005,302 228,168
Cash, December 31 s 10,488,770 s 2,274.742 s 245,547
RECONCILIATION OF OPERATINC INCOME TO NET CASH PROVIDl!D BY OPERATINC. ACTIVITIES
Net Operating Income !Loss> s 1.415,975 s (122,740) s 18,145
Adjustments To Reconcile Operating Income To
Net cash Provided !Used> By Operating Activities:
Depreciation expense 2,661,489 275,806
Decrease 11ncreaseI in accounts receivable 155,956 6,651 (1,458)
Decrease 11ncreaseI in prepaid assets 12,847)
Decrease llncreasel in Inventories 29,471 (1,454)
IDecreaseJ Increase in customer deposits 45,246
!Decrease> increase in accounts payable 23,848 247
!Decrease> Increase in taxes payable 12,939
!Decrease> increase in accrued employee benefits 11,141 5,394
!Decrease> Increase in unclaimed property 9,631
!Decrease> Increase in deferred revenue 1,978 16,7901 303
!Decrease> Increase in advance minimum dep 23,278
Total Adjustments 2,972,130 279,854 11,155)
Net cash Provided !Used> By Operating Activities s 4,388,105 s 157,114 s 16,990
see Accompanying Notes to Financial Statements.
28
The City's basic accounting structure, including its Chart of Accounts and account coding
format, is mandated by the State of Washington's Budgeting, Accounting and Reporting
system <BARS) and its use is enforced by the Office of the State Auditor through annual
audits. The City reports on the calendar year basis and employs a double entry modified
accrual system for all fund categories with the exception of Proprietary and Pension Trust
Funds requiring full accrual accounting.
3. Accrual Basis of Accounting
Proprietary and Pension Trust Funds are accounted for on the accrual basis of accounting.
Revenues are recognized in the accounting period in which they are earned and become
measurable, and expenses are recognized in the period when the related liability is
incurred.
4. Modified Accrual Basis of Accounting
Governmental Funds and Agency Funds are accounted for on the modified accrual basis of
accounting. Revenues and other governmental fund resources are recognized in the
accounting period in which they become susceptible to accrual -that is, when they
become both measurable and available to finance expenditures of the fiscal period.
"Available" means collectible within the current period or soon enough after to be used to
pay liabilities of the current period. Expenditures, claims and judgments are recognized
when the related fund liability is incurred.
The modified accrual basis differs from the accrual basis in the following ways:
a. Purchases of capital assets are considered expenditures.
b. Redemption's of long-term debt are considered expenditures when due.
c. Revenues are recognized only when they become both measurable and available to
finance expenditures of the current period. Note (1-F) identifies which revenue
sources have been treated as susceptible to accrual. Revenues that are measurable but
not available are recorded as receivable and offset by deferred revenues.
d. Inventories and prepaid items are reported as expenditures when consumed or
purchased.
e. Interest on long-term debt is not accrued but is recorded as an expenditure when due.
f. Accumulated unpaid vacation, sick pay, and other employee benefits are considered
expenditures when paid or expected to be liquidated with expendable available
financial resources.
D. BUDCETS AND BUDCETARY ACCOUNTINC
1. scope of Budget
Annual appropriated budgets are adopted for the general and special revenue funds and
for all proprietary funds on the modified accrual basis of accounting. For governmental
34
E. ENCUMBRANCE ACCOUNTINC
For Purposes of budgetary control, the City utilizes an encumbrance procedure through an
automated centralized purchasing system. Encumbrances are recorded when items or
services are requisitioned <based upon estimated or Known costs>. When payment occurs, the
encumbered value is reversed and the actual cost is recorded. Encumbrances outstanding at
year-end are canceled and must either be re-budgeted in the ensuing year or absorbed in the
established appropriations of the ensuing year. The outstanding encumbrances at December
31, 2001 are not reservations of fund balance and are not recorded as expenditures unless
susceptible to accrual.
F. ASSETS, LIABILITIES AND EQUITY
1. cash and Equivalents
It is the City's policy to invest all temporary cash surpluses. At December 31, 2001, the
treasurer was holding $26,411,682 in short-term residual investments of surplus cash. This
amount is classified on the balance sheet as Cash and Imprest cash in various funds. The
interest earnings on these investments are prorated to the various funds based on cash
balances.
For purposes of the statement of cash Flows, the City considers all highly liquid
investments <including restricted assets> with maturity of three months or less when
purchased to be cash equivalents.
2. Temporary Investments -see Note 3.
3. Receivables
Taxes receivable consists of property, gambling, and utility taxes. csee Note 4.> Accrued
interest receivable consists of amounts earned on investments, notes, and contracts at the
end of the year.
special assessments are recorded when levied. Special assessments receivable consist of
current and delinquent assessments. Deferred assessments consist of unbilled special
assessments that are liens against the property benefited. As of December 31, 2001,
$163,721 in special assessments receivable was delinquent.
customer accounts receivable consists of amounts owed from private individuals or
organizations for goods and services. Notes and contracts receivable consists of amounts
owed on open accounts from private individuals or organizations for goods and services
rendered.
4. Amounts Due to and from Other Funds; lnterfund Loans and Advances Receivable
These accounts include all interfund receivables and payables. A separate schedule of
interfund loans receivable and payable is furnished in Note 13. Long-term interfund loans
receivable are reported as advances and are offset equally by a fund balance reserve
account, which indicates that they do not constitute expendable available financial
resources, and therefore are not available for appropriation.
36
12. compensated Absences
compensated absences are absences for which employees will be paid, such as vacation
and sick leave. In governmental <and similar trust> funds, compensated absences that are
expected to be liquidated with expendable available financial resources are reported as
expenditures and a fund liability in the fund that will pay for them. The remainder of
compensated absences liability is reported in the General Long-Term Debt Account Group.
In proprietary and internal service funds, compensated absences are recorded as an
expense and liability of the fund that will pay for them.
vacation pay, which may be accumulated up to 36 days, is payable upon resignation,
retirement or death. Sick leave may accumulate up to 960 hours. Twenty-five percent of
outstanding sick leave <using a maximum of 720 hours> is payable upon resignation,
retirement or death.
13. Other Accrued Liabilities
These accounts consist of accrued wages and other accrued employee benefits.
14. Long-Term Debt-see Long-Term Debt Note 10.
15. Deferred Revenues
This account includes amounts recognized as receivables but not revenues in
governmental funds because the revenue recognition criterion has not been met. csee
Note 1-CJ
16. Other credits
This account is used to account for gains that will be amortized over succeeding fiscal
periods in proprietary funds.
17. contributed capital -see Fund Equity Note 14 B.
18. Fund Reserves and Designations -see Fund Equity Note 14.
C. REVENUES, EXPENDITURES AND EXPENSES
Under the modified-accrual basis of accounting:
1. Charges for services, interest on investments, and rents are generally considered
measurable and available when earned in governmental funds.
2. Taxes and federal or state entitlements or shared revenues that have been collected but
not remitted by an intermediary collection agency to the City are considered measurable and
available.
3. special assessments are considered measurable and available when they become current.
38
NOTE 3. DEPOSITS AND INVESTMENTS
DEPOSITS
The City's deposits and certificates of deposit are covered by federal depository insurance
<FDIC> or by collateral held in a multiple financial institution collateral pool administered by the
Washington Public Deposit Protection Program <PDPC>.
INVESTMENTS
As required by state law, all investments of the City's funds <except as noted below> are
obligations of the u. s. Government, u. s. agency issues, obligations of the state of
Washington, general obligations of Washington State municipalities, the state Treasurer's
Investment Pool, or certificates of deposits with Washington state banks and savings and loan
institutions. Investments of <pension/nonexpendable> trust funds are not subject to the
preceding limitations. All temporary investments are stated at purchase price.
The City's investments are categorized to give an indication of the risk assumed at year-end.
The following summary shows the City's investments at year-end categorized by risk.
category 1 includes investments that are either insured or registered and held by the City or
its agent in the City's name. category 2 includes uninsured and unregistered investments
that are held by the counterparty·s trust department or agent in the City's name. category 3
includes uninsured and unregistered investments for which the securities are held by the
counterparty, or its trust department or agent, but not in the City's name. The fair market
value of investments is based upon quoted market prices as of December 31, 2001. The City's
investments at December 31, 2001 are as follows:
CATEGORY
u. s. Government securities
Federal Agency securities
certificates of Dep.
Mutual Funds
Total
1
S 50,759
955,030
1,050,953
0
S 2,056,742
Investments not subject to categorization:
Investment in state Treasurer's Investment Pool
savings Accounts
Total Investments
2 3
s OS 0
0 0
0 0
0 1,164,511
s 0 S 1,164.511
40
TOTAL
s 50,759
955,030
1,050,953
1,164,511
s 3,221,253
20,465,904
1,653,466
S 25,340,623
FAIR MARKET
VALUE
s 350,000
955,030
1,072,445
1,914,837
S 4,292,312
20,465,904
1,653,466
S 26,411,682
The City's general levy for 2001 was S3.0434 per S1,000 on an assessed valuation of S1,031,900,004
for a total regular levy of $3,140,485.
NOTE 5. INTERCOVERNMENT AL CRANTS AND ENTITLEMENTS
The accompanying schedule of Financial Assistance (Schedule 16> provides a listing of all federal
and state (and interlocall assistance programs in which the City participates and summarizes the
City's grant transactions for 2001.
NOTE 6. FIXED ASSETS AND DEPRECIATION
A. ceneral Policies
Major expenditures for fixed assets, including capital leases and major repairs that increase
useful lives, are capitalized. Maintenance, repairs, and minor renewals are accounted for as
expenditures or expenses when incurred.
All fixed assets are valued at historical cost or estimated cost per valuation tables where
historical cost is not known. useful lives of asset classifications are depreciated using the
straight-line method as follows: Buildings -40 years; Improvements -20 years; and machinery
& equipment-10 years.
The City of Pasco has acquired certain assets with funding provided by federal financial
assistance programs. Depending on the term of the agreements involved, the federal
government could retain an equity interest in these assets. However, the City has sufficient
legal interest to accomplish the purposes for which the assets were acquired, and has
included such assets within the applicable account group or fund.
B. Ceneral Fixed Assets
General fixed assets are long-lived assets of the City as a whole. When purchased, leased, or
constructed, such assets are recorded as expenditures in the governmental funds and
capitalized in the general fixed assets account group. No depreciation has been provided on
general fixed assets, nor has interest been capitalized.
General fixed assets purchased or constructed from special assessment funds, and all
infrastructure assets such as roads, bridges, curbs, and sidewalks, are considered public
property and are not accounted for in the general fixed assets account group. A summary of
general fixed assets follows:
42
NOTE 7. PENSION PLANS
Substantially all City of Pasco full-time employees and qualifying part-time employees participate
in one of the following statewide local government retirement system administered by the
Washington state Department of Retirement systems, under cost sharing, multiple-employer
public employee retirement plans. 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 CCAFR> that includes financial statements and required
supplementary information for each plan. This CAFR may be obtained from the Department of
Retirement systems, Administrative services Division, P.O. Box 48380, Olympia, WA 98504-8380.
The following disclosures are made pursuant to GASB statement 27, Accounting for Pensions by
state and LOcal Government Employers.
A. Public Employees' Retirement system <PERS> Plans 1 and 2
1. Plan Description
PERS is a cost sharing multiple employer defined benefit pension plan. Membership in the
plan includes elected officials; state employees; employees of the supreme, Appeals, and
Superior courts Cother than judges in a judicial retirement system>; employees of legislative
committees; college and university employees not in national higher education
retirement programs; judges of districts and municipal courts; non-certificated employees
of school districts; and employees of local governments. The PERS system includes two
plans. Participants who joined the system by September 30, 1977, are Plan 1 members.
Those joining thereafter are enrolled in Plan 2. Retirement benefits are financed from
employee and employer contributions and investment earnings. Retirement benefits in
both Plan 1 and Plan 2 are vested after completion of five years of eligible service.
Retirement benefit provisions are established in state statute and may be amended only
by the state legislature.
Plan 1 members are eligible for retirement at any age after 30 years of service, or at age 60
with 5 years of service, or at age 55 with 25 years of service. The annual pension is two
percent of the final average compensation per year of service, capped at 60 percent. The
average final compensation is based on the greatest compensation during any 24 eligible
consecutive compensation months. If qualified, after reaching age 66 a cost-of-living
allowance is granted based on years of service credit and is capped at three percent
annually.
Plan 2 members may retire at the age of 65 with five years of service, or at age 55 with 20
years of service, with an allowance of two percent per year of service of the average final
compensation. Plan 2 retirements prior to 65 are actuarially reduced. There is no cap on
years of service credit and a cost-of-living allowance is granted, capped at three percent
annually.
44
B. Law Enforcement Officers and Fire Fighters <LEOFF> Plans 1 and 2
1. Plan Description
LEOFF is a cost sharing multiple employer defined benefit pension plan. Membership in
the plan includes all full time, fully compensated, local law enforcement officers and fire
fighters. LEOFF is comprised solely of nonstate employees. The LEOFF system includes two
plans. Participants who joined the system by September 30, 1977 are Plan 1 members.
Those joining thereafter are enrolled in Plan 2. Retirement benefits are financed from
employee and employer contributions, investment earnings, and state contributions.
Retirement benefits in both Plan 1 and Plan 2 are vested after completion of five years of
eligible service. Retirement benefit provisions are established in state statute and may be
amended only by the state legislature.
Plan I participants are eligible to retire with five years of service at age 50. The benefit per
year of service is as follows, with a cost-of-living allowance granted, capped at 3 percent
annually:
Term Of service Percent Of Final Average
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less that 10 years 1.0%
Plan 2 members are eligible to retire at age 50 with 20 years of service, or at age 55 with five
years of service. Retirement benefits prior to age 55 are actuarially reduced. The benefit is
two percent of average salary per year of service. The average salary is based on the highest
consecutive 60 months. There is no cap on years of service credit and a cost-of-living
allowance is granted, capped at three percent annually.
There are 356 participating employers in LEOFF. Membership in LEOFF consisted of the
following at December 31, 2000:
Retirees and Beneficiaries Receiving Benefits
Terminated Plan Members Entitled To But Not Yet Receiving Benefits
Active Plan Members vested
Active Plan Members Non-vested
Total
2. Funding Policy
7,923
279
10,680
3 952
22,834
Plan 1 employer and employee contribution rates are established by statute at six percent
and the state is responsible for the balance of the funding at rates set by the Pension
Funding council to fully amortize the total costs of the plan. Employer and employee
rates for Plan 2 are set by the director of the Department of Retirement systems based on
recommendations by the Office of the state Actuary to continue to fully fund the plan.
Plan 2 employers and employees are required to contribute at the level required by state
46
r
,....,
r
,..
,..,
I
r,
I
,....,
I
,...,
law. The methods used to determine the contribution rates are established under state
statute in accordance with Chapters 41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current year covered payroll,
as of December 31, 2001 were:
Employer*
Employee
state
LOEFF Plan 1
0.23%
0.00%
N/A
LEOFF Plan 2
2.93%
4.50%
1.80%
* The employer rates do not include the employer administrative expense fee currently set at
0.21%.
Both the City and the employees made the required contributions. The City required
contributions for the year ended December 31, were:
2001
2000
1999
c. Firemen's Pension
LEOFF Plan 1
S 1,412
17,498
31,890
LEOFF Plan 2
$166,601
155,532
176,592
The City administers a closed, small single-employer defined benefit plan called the Firemen 's
Pension Fund. The system is shown as a trust fund in the financial reports of the City.
As of December 31, 2001, there were a total of 12 individuals covered by this system of which
one is currently still employed and 11 were drawing benefits.
The most recent actuarial study of the system was performed by EFI Actuaries to determine
the funding requirements as of 12/31/99. As of this date, the market value (based on market
quotes) of the plan assets was S3,467,025 and the present value of future benefits was
S2,468,087. The actuarial computation was performed using the entry age normal cost
method. Under this method the projected benefits are allocated on a level basis as a
percentage of salary over the earnings of each individual between entry age and assumed exit
age. The actuarial accrued liability is amortized as a level dollar amount over a closed 30-year
period beginning December 31, 1999. The actuarial assumptions used in this valuation are as
follows: Investment Return -7% per year net of investment and administrative expenses;
consumer Price Index increases -3 % per year; Salary Increases -5% per year in each
member's rank at retirement; Medical Cost Inflation -5% per year; Pre-retirement decrements
-No termination, death disablement, or mortality rates are assumed for active employees;
Retirement -Active employees are assumed to retire at the later of age so or 25 years of
service; Post retirement mortality -UP-94 male and female mortality rates; and Family
47
composition -all members are assumed to be married with no children eligible for benefits.
Wives are assumed to be three years younger than their husbands. surviving spouses are
assumed not to remarry.
The following 10-year table of historical trend information shows the system's progress in
accumulating sufficient assets to pay benefits when due:
Unfunded
Unfunded Pension Benefit
Net Assets Pension Annual as a Percentage
Fiscal Available Percentage Benefit covered of covered
Year For Benefit* Funded Obligation Payroll Payroll
2001 $3,668,413 134.82% S (947,347) $69,173 (1369.53%)
2000 3,663,819 141.38% (1,072,328) 63,364 (1692.33%)
1999 3,467,025 140.47% (998,938) 61,989 (1611.48%)
1998 3,335,667 146.87% (1,064,458) 86,668 (1228.20%)
1997 2,055,329 93.21% 149,729 87,036 172.03%
1996 1,880,764 87.85% 260,069 94,606 274.90%
1995 1,608,068 77.37% 470,410 93,913 500.90%
1994 1,563,410 77.48% 454,530 92,828 489.65%
1993 1,521,510 77.66% 437,655 98,042 446.40%
1992 1,487,482 78.20% 414,620 93,550 443.21%
* Began using market value in 1998. Previously used Book Value.
** Actuarial study completed in 2000.
Following is the ten-year historical data of Revenues and Expenditures.
Fire Pension Historical Data
2001 2000 1999 1998 1997 1996 1995 1994 1993 1992
Revenues
Interest Inc. $169,369 $315,653 $287,562 $266,381 $218,677 $163,287 $90,874 $84,139 $77,537 $89,062
lntergov't. 20,381 17,576 30,890 20,380 22,863 27,241 20,909 23,161 19,531 17,594
Total Revenues 189,750 333,229 318,452 286,761 241,540 190,528 111,783 107,300 97,068 106,656
Expenditures
Personal serv. 96,853 80,769 79,381 73,702 67,175 69,118 67,183 65,400 63,040 62,470
NOTE 8. DEFERRED COMPENSATION PLAN
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. All assets and income of this
48
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.
Fire 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, NCAS-Northwest, 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 four 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 S50,000 per individual or S725,000 aggregate per year.
NOTE 10. LONG-TERM DEBT AND CAPITAL LEASES
A. Long-Term Debt
The City issues general obligations and revenue 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 to advance refund general obligation and
revenue bonds. General obligation bonds have been issued for general government activities
and are being repaid from the applicable resources. Proprietary fund revenues are used to repay
revenue and refunding bonds.
The annual requirements to amortize outstanding debt, including interest and capital lease
payments, are as follows:
Utility
General Revenue/ Other Other special
Obligation Refunding General Utility Assessment Total
Bonds Bonds Debt Debt Debt Debt
2002 s 1,243,573 s 1,272,979 s 164,974 s 2,076,207 s 363,051 s 5,120,784
2003 1,276,269 1,285,673 134,799 2,072,527 352,195 5,121,463
2004 1,305,913 1,287,252 135,278 2,068,847 337,188 5,134,478
2005 1,297,205 1,289,765 133,421 2,065,167 311,808 5,097,366
2006 1,299,159 1,274,111 134,712 2,061,487 71,055 4,840,524
Thereafter 14!081!362 10!944!073 914!296 25!5281001 3001416 5117681148
Totals S 20,503,481 S 17,353,853 S 1,617,480 S 35,872,236 S 1,735,713 S 77,082,763
In proprietary funds, unamortized debt issue costs are recorded as deferred charges and
bonds are displayed net of premium or discount; annual interest expense is decreased by
amortization of debt premium and increased by the amortization of debt issue costs and
discount.
50
Ill
Ill
Ill
Ill
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 the grantor disallowing
some expenditures under the terms of the grants. However, City management believes that such
disallowances, if any, would be immaterial.
NOTE 12. COMMITMENTS
Pension commitments are discussed in Note 7. Other employee benefit commitments are
discussed in Note 1-F-12. capital leases are discussed in Note 10-B.
NOTE 13. INTERFUND TRANSACTIONS AND BALANCES
A. Classification of lnterfund Transactions
lnterfund transactions are classified as follows:
1. Transactions that would be treated as revenues, expenditures or expenses if they
involved external organizations, such as buying goods and services or payments in lieu of
taxes, are similarly treated when they involve other funds of the City.
2. Transfers to support the operations of other funds are recorded as "Operating Transfers"
and classified with "Other Financing sources or uses."
3. contributions to the capital of enterprise or internal service funds, <transfers between
those funds and the general fixed assets account group) transfers to establish or reduce
working capital in other funds, and transfers of remain ing balances when funds are
closed, are classified as residual equity transfers and reported as direct additions to or
deductions from fund equity.
4. Loans between funds are classified as lnterfund loans receivable and payable or as
advances to and from other funds on the combined balance sheet depending on the
time period for which the loan was made. lnterfund loans do not affect total fund
equity, but advances to other funds are offset by a reservation of fund equity.
52
The following is a schedule of contributed capital at December 31, 2001.
Beginning 2001 2001 Ending
source Balance contributions Amortization Balance
Municipal s 5,042,863 s 0 S 143,790 s 4,899,073
customers 5,323,402 904,756 179,662 6,048,496
lntergovern mental. 4,204,919 0 132,704 4,072,215
S 14,571,184 s 904,756 S 456,156 S 15,019,784
2. Reservations of Retained Earnings
Retained earnings in proprietary fund types are generally reserved to indicate that a
portion of retained earnings has been externally restricted for specific purposes. The
amount reserved equals total restricted assets except for amounts intended for payment
of current payables and construction projects.
c. Designated Fund Balances and Retained Earnings
This category is used to set aside fund equity when City management has plans or tentative
commitments to expend resources for certain purposes in future periods. Further legal
action will be required to authorize the actual expenses or expenditures.
D. Negative Fund Balances and Bank overdrafts
The following funds report a negative fund balance and/or a bank overdraft at December 31,
2001.
Fund
M.L. King community center
Ambulance services
cemetery
senior center
T.R.A.C. Development & operation
stadium/Convention center
Equipment Rental operations
central stores
L.I.D. construction
L.I.D. Assessments
Note:
Fund Balance
S 10,586
(70,622)
(229,299)
(16,261)
(860,110)
(653,549)
(16,663)
(4,734)
(76,742)
(5,268,153)
cash Balance
S (66,991)
(24,670)
(16,022)
(13,644)
22,090
5,895
10,031
(22,811)
(69,942)
426,810
The L.I.D. construction Fund is used to track the expenditures for various Local Improvement
District projects. once each project is completed and financing is obtained, funds are
transferred into the fund to cover total project expenditures.
54
Effective August 2, 1993, the City of Kennewick assumed responsibility as the operating
Jurisdiction for EMS via a coordinating Agreement. The Operating Jurisdiction provides all
necessary support services for the operation of EMS such as accounting, legal services and risk
management. EMS reimburses the City for these services.
The City of Pasco·s equity interest in EMS was $11,734 on December 31, 2001, which is reflected
as Equity in Joint ventures in the General Fixed Assets Account Group. The City does not
anticipate any income distribution from EMS since charges are assessed only to recover
anticipated expenses.
complete separate financial statements for EMS may be obtained at the City of Kennewick,
210 West Sixth Avenue, Kennewick, Washington.
c. Metro Drug Forfeiture Fund
The Metropolitan controlled Substance Enforcement Group (Metro> was established prior to
1987, when six participating municipal corporations entered into an lnterlocal 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 January 1, 1990, the City of Pasco 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.
Intergovernmental support paid by Metro in 2001 was S1,046 to Franklin county for telephone
wiring for offices after a fire.
The City of Pasco·s equity interest in Metro was $25,501 on June 30, 2001, which is reflected in
Equity in Joint ventures in the General Fixed Assets Account Group. 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 at the City of Pasco, 525
North Third street, Pasco, Washington.
D. Trade, Recreation, Agricultural center
In 1994 the City entered into an agreement with Franklin county for the Trade, Recreation,
and Agricultural center ffRAC>. The City shares with Franklin county the expenses to operate
and cover debt service. Franklin county handles all operating decisions and financial
reporting for TRAC. complete financial statements for TRAC may be obtained at Franklin
county, 1016 N. 4th Avenue, Pasco, Washington.
For calendar year 2001, the City paid Franklin county S185,221 in operating expenses and
$105,616 in debt service expenses.
56
l'""'I
,....,
,...,
,-,
,-,
,...,
,-,
The City's obligation for debt service is included in the debt service schedule in Note 10.
NOTE 16. OTHER DISCLOSURES
A. Prior Period Adjustments
Prior period adjustments consist of the following:
A S4,024 adjustment in General Fund and a S158 adjustment in cemetery Trust Fund to bring
prior year accounts receivable and deferred accounts receivable into balance.
An S871 adjustment in General Fund to record a previously unrecorded payable.
A S156,684 adjustment between the General Fund and the General Purpose construction Fund
to correctly record a transfer of monies between the funds for the Autoplex Substation
project.
Established unclaimed property payable accounts of S404 in General Fund, $47 in Athletic
Program Fund and S$7,638 in water/Sewer Enterprise Fund.
Established HUD Rehab Loan Accounts Receivable account to record outstanding rehab loans
in the amount of $283,479 in the CDBG Fund.
A S591 adjustment in the cemetery Fund and a S158 adjustment in the cemetery Trust Fund to
record prior year interest revenue transfers.
A S1,191 adjustment to correct leasehold excise tax in the Equipment Rental Fund.
A S1,452 adjustment to prior year inventory in central stores Fund.
A $806,839 adjustment to bring investment amounts from book value to market value.
B. subsequent Events
None.
57
CITY OF PASCO, WASHINCTON Exhibit A-2
CENERAL FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES
For The Years Ended December 31, 2001 And 2000
2001
REVENUES
Taxes s 13,079,954 s
Licenses & Permits 1,015,381
Intergovernmental Revenue 932,859
Charges for Services 1,915,019
Fines & Forfeitures 481,435
Interest 251,146
Miscellaneous Revenue 498,960
Total Revenues 18,174,754
EXPENDITURES
current:
General Government 3,133,298
security of Persons and Property 8,417,803
Physical Environment 750,329
Economic Environment 269,308
Mental and Physical Health 6,892
culture and Recreation 1,848,657
Capital outlay 670,386
Debt service
Principal 4,538,136
Interest 475,368
Total Expenditures 20,110,177
Excess of Revenues over Expenditures (1,935,423)
OTHER FINANCINC SOURCES !USES!
Disposition of Fixed Assets 231,305
Proceeds of General L-T Debt 4,248,876
Loan Repayments 7,860
Insurance Recoveries 1,457
Operating Transfers -(In> 34,000
Operating Transfers -!Out> (695,280)
Total Other Financing sources <Uses> 3,828,218
Excess of Revenues and Other Financing sources
over Expenditures and Other Financing uses 1,892,795
Fund Balance, January 1 3,896,941
Prior Year corrections (160,242)
Equity Transfers In 270,740
Fund Balance, December 31 s 5,900,234 s
64
2000
12,487,130
794,677
840,197
1,665,431
403,155
211,094
369,524
16,771,208
2,845,629
8,303,553
807,252
291,067
3,604
1,638,489
543,570
478,293
476,275
15,387,732
1,383,476
10,000
225,000
0
26,266
175,915
(844,333)
(407,152)
976,324
2,836,517
84,100
0
3,896,941
CITY OF PASCO, WASHINCTON Exhibit A-4
CENERAL FUND
STATEMENT OF EXPENDITURES· BUDCET AND ACTUAL
For The Years Ended December 31, 2001 And 2000
2001 2000
VARIANCE VARIANCE
Favorable Favorable
BUDGET ACTUAL <Unfavorable) BUDGET ACTUAL <Unfavorable>
CENERAL COVERNMENT
council
Personal services s 63,000 s 65,746 s (2,746) s 63,150 s 63,688 s (538)
Personnel Benefits 5,100 5,227 (127) 5,000 5,036 (36)
supplies 500 499 1 5,500 4,951 549
Other services & Charges 23,600 20,461 3,139 25,000 26,566 (1,566)
Total council 92,200 91,933 267 98,650 100,241 (1,591)
Municipal court
Personal services 284,800 250,226 34,574 246,900 224,011 22,889
Personnel Benefits 73,100 60,062 13,038 66,150 54,083 12,067
supplies 8,300 9,877 (1 ,577) 8,000 7,888 112
Other services & Charges 114,800 153,915 (39,115) 122,650 96,545 26,105
Total Municipal court 481 ,000 474,080 6,920 443,700 382,527 61,173
City Manager
Personal services 263,950 286,395 (22,445) 254,200 269,454 (15,254)
Personnel Benefits 58,750 58,567 183 34,150 57,411 (23,261)
Supplies 2,500 3,894 (1,394) 2,400 4,195 (1,795)
Other services & Charges 61 ,860 64,196 (2,336) 63,060 42,917 20,143
Total City Manager 387,060 413,052 (25,992) 353,810 373,977 (20,167)
City Attorney
Personal Services 90,750 96,699 (5,949) 87,380 93,647 (6,267)
Personnel Benefits 20,650 20,404 246 19,940 20,191 (251)
Supplies 11,600 15,651 (4,051) 10,600 10,584 16
Other services & Charges 156,750 156,398 352 134,770 138,385 (3,615)
Total City Attorney 279,750 289,152 (9,402) 252,690 262,807 (10,117)
Finance & Administration
Personal services 712,900 725,287 (12,387) 699,190 695,050 4,140
Personnel Benefits 161,300 155,833 5,467 166,890 153,755 13,135
supplies 27,100 30,573 (3,473) 30,100 24,620 5,480
Other services & Charges 359,580 354,844 4,736 289,470 281,999 7,471
Total Finance 1,260,880 1,266,537 (5,657) 1,185,650 1,155,424 30,226
Non-Departmental
Personal services 280,000 41,375 238,625 227,730 57,371 170,359
Personnel Benefits 146,450 150,301 (3,851) 146,350 130,990 15,360
supplies 500 2,394 (1 ,894) 500 4,272 (3,772)
Other Services & Charges 340,600 327,028 13,572 296,200 316,001 (19,801)
Intergovernmental 44,000 77,446 (33,446) 62,000 62,019 (19)
Total Non-Department 811 ,550 598,544 213,006 732,780 570,653 162,127
TOTAL GENERAL GOVERNMENT s 3,312,440 s 3,133,298 s 179,142 s 3,067,280 s 2,845,629 s 221 ,651
66
CITY OF PASCO, WASHINGTON Exhibit A-4
GENERAL FUND
STATEMENT OF EXPENDITURES -BUDGET AND ACTUAL
For The Years Ended December 31, 2001 And 2000
2001 2000
VARIANCE VARIANCE
Favorable Favorable
BUDGET ACTUAL <Unfavorable! BUDGET ACTUAL <Unfavorable!
PHYSICAL ENVIRONMENT
Engineering
Personal services s 339,200 s 321,899 s 17,301 s 336,890 s 320,323 s 16,567
Personnel Benefits 83,750 74,767 8,983 93,600 74,490 19,110
Supplies 13,200 12,813 387 13,200 13,291 (91)
Other services & Charges 37,640 38,090 (450, 26,810 43,109 (16,299)
Total Engineering 473,790 447,569 26,221 470,500 451,213 19,287
Non-Departmental
Personal services 0 0 0 0 0 0
Personnel Benefits 0 0 0 0 0 0
Supplies 6,500 10,052 (3,552) 5,000 6,090 (1,090)
Other services & Charges 294,400 292,708 1,692 295,900 350,122 (54,222)
Intergovernmental 2,000 0 2,000 2,000 (173) 2,173
Total Non-Departmental 302,900 302,760 140 302,900 356,039 (53,139)
TOTAL PHYSICAL ENVIRONMENT 776,690 750,329 26,361 773,400 807,252 (33,852)
ECONOMIC ENVIRONMENT
community Development
Personal services 191,850 199,392 (7,542) 223,530 206,199 17,331
Personnel Benefits 41,450 39,861 1,589 50,100 42,445 7,655
supplies 2,500 2,535 (35) 2,500 2,539 (39)
Other services & Charges 41,250 23,634 17,616 34,200 31,636 2,564
Intergovernmental 1,000 1,378 (378) 1,000 951 49
Total community Development 278,050 266,800 11,250 311,330 283,770 27,560
Non Departmental
Other services & Charges 0 2,508 (2,508) 0 7,297 (7,297)
TOTAL ECONOMIC ENVIRONMENT s 278,050 s 269,308 s 8,742 s 311,330 s 291,067 s 20,263
68
,...,
r
,..,
,....
,-.
,-,
r
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 construction, alteration, repair,
improvement and 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 in
connection with projects approved by the State Highway Department (main
thoroughfares) within the City. Main revenue sources are state-shared revenue,
along with federal and state grants.
Street Overlay Fund -responsible for the maintenance 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.
Ambulance Fund -accounts for revenue and expenditures generated by
Ambulance Services including Third-Party Billing.
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.
Athletic Program Fund -accounts for user fees and related expenditures for
specific team sports.
71
Senior Center Fund -accounts for grants, donations, and City and County
contributions to support senior citizen activities for seniors throughout the
County.
Multi-Modal Facility Fund -accounts for revenue and expenditures at the new
train and bus depot. This facility was built in 1998 and space is leased to
AMTRAK as a passenger train depot and Greyhound Buslines as a passenger bus
depot. Other spaces are leased to business offering amenities to supplement the
travel businesses.
Bi-Centenial Fund -to account for funds received, invested, disbursed, and
expended exclusively for the purpose of funding the celebration of the Bi-
Centenial of the City in the year 2084.
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.
Litter Abatement Fund -accounts for funds received from corporate sponsors
and expenditures made related to roadway litter clean up.
Revolving Abatement Fund -responsible for the abatement of nuisances, such as
condemned buildings and public eyesores not remedied by owners.
T .R.A.C. Development and Operating Fund -accounts for the City's payment
to Franklin County for the operation of the Trade, Recreation and Agricultural
Center and the City's portion of debt service.
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 any other qualified tourist
promotion activities.
Sun Willows Golf Course Development Fund -accounts for revenues and
expenditures associated with the financing, development, and sales of land and
improvements located at the Village at Sun Willows located at the Sun Willows
Golf Course (formerly Pasco Municipal Golf Course).
72
CITY OF PASCO, WASHINCTON
SPECIAL REVENUE FUNDS
COMBININC BALANCE SHEET
As Of December 31 , 2001 <With Comparable Totals For 2000)
CITY
STREET
ASSETS
cash s 307,902
Receivables, net:
Taxes
Accounts 120
Grants
Loans/Advances Receivable
lnterfund Loans Receivable
TOTAL ASSETS s 308,022
LIABILITIES & FUND BALANCES
LIABILITIES
Accounts Payable s 17,018
Retainage Payable 1,118
lnterfund Loans Payable
Due To Other Governments
consumer Deposits 4,851
Deferred Revenue
Total Liabilities 22,987
FUND BALANCES
Reserved for Loans/Advances
Reserved for Future uses
Other Reserves
unreserved-Undesignated 285,035
Total Fund Balances 285,035
TOTAL LIABILITES
AND FUND BALANCES s 308,022
Exhibit B-1
ARTERIAL STREET
STREET OVERLAY BLOCK GRANT
s 344,862 s 1,17S,S94 s 93,891
S0,178
50
12,245
438,535
s 344,862 s 1,225,772 s 544,721
s 118,807 s 0 s 8,754
17,659 2,993
50
136,466 11 ,797
155,056
208,396 1,225,772 377,868
208,396 1,225,772 532,924
s 344,862 s 1,225,772 s 544,721
74
CITY OF PASCO, WASHINCTON
DEBT SERVICE FUNDS
COMBINED BALANCE SHEET
As Of December 31, 2001 <With comparative Totals For 2000l
1993 G. 0. 1999 U.T.G.O.
CIVIC CTR LIBRARY/
BOND FIRE STAT.
ASSETS
cash s 42,606 s 68,134
cash with Fiscal Agent 0 0
Taxes Receivable 39,788 7,165
Note Receivable 0 0
Assessments Receivable:
current 0 0
Delinquent 0 0
Deferred 0 0
TOTAL ASSETS s 82,394 s 75,299
LIABILITIES & FUND BALANCES
LIABILITIES
Accounts Payable s 0 s 0
Notes Payable 0 0
Matured Bonds Payable 0 0
Matured Interest Payable 0 0
Assessment Bonds Payable 0 0
Accrued Interest Payable 0 0
lnterfund Loans Payable
General Fund Fund 0 0
Fire Pension Fund 0 0
Deferred Revenue 37,780 6,759
Total Liabilities 37,780 6,759
FUND BALANCES
Reserved for Debt service 44,614 68,540
44,614 68,540
TOTAL LIABILITIES
& FUND BALANCES s 82 ,394 s 75,299
s
s
s
s
Exhibit C-1
L.I.D. L.I.D. TOTALS
GUARANTY ASSESSMENTS 2001 2000
1,095,876 s 426,810 s 1,633,426 s 1,533,770
0 0 0 200,000
0 0 46,953 38,473
10,084 0 10,084 15,809
0 481,729 481,729 421 ,139
0 136,721 136,721 123,813
0 3,954,725 3,954,725 5,564,836
1,105,960 s 4,999,985 s 6,263,638 s 7,897,840
0 s 15,551 s 15,551 s 218
0 0 0
0 0 0 200,000
0 0 0 10,1 27
0 1,466,975 1,466,975 1,165,000
0 10,127 10,127 0
0 73,100 73,100 80,960
0 7,100 7,100 14,000
0 3,954,725 3,999,264 5,597,814
0 5,527,578 5,572,117 7,068,119
1,1 05,960 (527,593) 691,521 829,721
1,105,960 (527,593) 691 ,521 829,721
1,1 05,960 s 4,999,985 s 6,263,638 s 7,897,840
90
CITY OF PASCO, WASHINGTON
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
As Of December 31, 2001 !With comparative Totals For 200m
GENERAL
PURPOSE
CONSTRUCTION
ASSETS
cash s 655,757
Accounts Receivable 0
Grants Receivable 0
TOTAL ASSETS s 655,757
LIABILITIES & FUND BALANCES
LIABILITIES
Accounts Payable s 252
Deposits Payable 12,036
Deferred Revenue 0
Retainage Payable 14,171
Total Liabilities 26,459
FUND BALANCES
Reserved for Capital Projects 629,298
TOTAL LIABILITIES & FUND BALANCES s 655,757
96
Exhibit D-1
LID TOTALS
CONSTRUCTION 2001 2000
s (69,942) s 585,815 s (1,263,260)
0 0 0
0 0 0
s (69,942) s 585,815 s (1,263,260)
s 6,800 s 7,052 s 24,988
0 12,036 12,036
0 0 0
0 14,171 44,614
6,800 33,259 81,638
(76,742) 552,556 (1,344,898)
s (69,942) s 585,815 s (1,263,260)
CITY OF PASCO, WASHINGTON Exhibit E-4
ENTERPRISE FUNDS
STATEMENT OF CASH FLOWS
For The Years Ended December 31, 2001 And 2000
2001 2000
cash flows from operating activities:
cash received from customers s 9,253,248 s 8,356,492
cash paid to suppliers (255,803) (261,691)
cash paid to employees (1,462,777) (1,386,075)
cash paid for other operating expenses (1,957,554) (1,669,453)
cash paid for taxes on revenue (1,189,009) (1,089,926)
Net cash provided by operating activities 4,388,105 3,949,347
cash flow from Non-capital financing activites:
Prior year correction (80,017) 7,974
Non-operating revenues 540,922 286,485
lnterfund Transfers-In/Out 0 1,109,455
Net cash used in non-capital financing activities 460,905 1,403,914
cash flows from Capital and related financing activities:
contributed capital 904,756 1,024,448
Proceeds from Bonds 0 0
Proceeds from Loans/Notes 1,326,719 2,096,035
Principal payments-bonds (615,000) (585,000)
Principal payments-state loan (1,075,590) (1,600,109)
Purchase of fixed assets (3,385,834) (23,181,207)
Construction work-in-Process (1,495,013) 19,777,734
Residual Equity Transfer-out (763,490) (6,100)
Interest paid (1,630,224) (1,050,765)
Net cash used in capital and related financing activities (6,733,676) (3,524,964)
cash flows from investing activites:
Receipts on Note Receivable 38,713 99,306
Interest received 476,925 616,822
Net cash provided from investing activities 515,638 716,128
Net increase in cash and cash equivalents (1,369,028) 2,544,425
cash and cash equivalents, January 1 11,857,799 9,313,374
cash and cash equivalents, December 31 s 10,488,771 s 11,857,799
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITES
Operating income s 1,415,975 s 2,245,409
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense 2,661,489 1,755,224
!lncreaseldecrease in accounts receivable 155,956 (99,418)
uncreasel decrease in prepaid assets (2,847) (169)
uncreaseldecrease in inventories 29,471 25,879
lncrease<decreasel in customer deposits 45,246 (962)
lncrease<decreasel in accounts payable 23,848 32,862
Increase !decreasel in taxes payable 12,939 (17,675)
Increase <decreasel in deferred revenue 1,978 0
Increase <decrease) in unclaimed property 9,631 0
lncrease<decreasel in accrued employee benefits 11,141 8,033
Increase in advance minimum deposits 23,278 165
Total adjustments 2,972,130 1,703,939
Net cash provided by operating activities s 4,388,105 s 3,949,348
104
CITY OF PASCO, WASHINCTON
SCHEDULE OF CHANCES IN CENERAL FIXED ASSETS
-BY FUNCTION AND ACTIVITY
As Of December 31, 2001
FUNCTION AND ACTIVITY
CENERAL COVERNMENT:
City Manager
City Attorney
Finance
Non-Departmental
Total General Government
SECURITY OF PERSONS & PROPERTY:
Municipal court
Police
Fire
Total Public Safety
PHYSICAL ENVIRONMENT:
Engineering
Maintenance
Total Physical Environmental
TRANSPORTATION
Multi-Modal Facility
ECONOMIC ENVIRONMENT:
community Development
CULTURE & RECREATION:
Parks & Recreation
TOTAL CENERAL FIXED ASSETS
Jan.1, 2001
s 8,640
4,224
24,401
12,879,050
12,916,315
s 4,858
413,756
2,110,424
2,529,038
42,934
62,670
105,604
1,669,697
279,145
9,172,805
s 26,672,604
124
Exhibit H-3
Additions Deductions Dec.31, 2001
s 0 s 863 s 7,777
0 422 3,802
0 2,440 21,961
295,775 366,384 12,808,441
295,775 370,109 12,841,981
s 19,725 s 486 24,097
70,500 40,944 443,312
18,404 67,019 2,061,809
108,629 108,449 2,529,218
7,746 4,293 46,387
0 4,112 58,558
7,746 8,405 104,945
0 41,742 1,627,955
0 9,497 269,648
561,673 444,805 9,289,673
s 973,823 s 983,007 s 26,663,420
CITY OF PASCO, WASHINGTON
GENERAL GOVERNMENTAL REVENUES BY SOURCE AND GENERAL GOVERNMENTAL
EXPENDITURES BY FUNCTION*
Last Ten Fiscal Years
Table 1
2001 2000
REVENUES
Taxes s 15,044,749 s 14,022,599 s
Licenses and Permits 1,023,159 798,717
Intergovernmental 2,430,810 2,565,129
Charges for Service 3,003,894 2,024,422
Fines and Forfeitures 506,964 429,802
Miscellaneous 1,567,339 1,492,169
Operating Transfers-In 632,211 1,033,842
TOTAL REVENUES S 24,209,126 s 22,366,680 s
EXPENDITURES
General Government s 3,133,298 s 2,845,629 s
security of Persons and Property 9,588,907 8,578,223
Physical Environment 986,228 1,003,261
Transportation 685,779 701,022
Culture and Recreation 2,655,314 2,205,837
Economic Environment 392,898 655,084
Mental and Physical Health 6,892 3,604
Capital Outlay 1,713,832 1,972,121
Debt Service 6,045,094 1,714,489
Operating Transfers-out 2,194,770 2,007,413
TOTAL EXPENDITURES S 27,403,012 s 21,686,683 s
1999 1998
11,982,112 s 11,576,262 s
650,009 548,446
2,496,665 2,499,159
1,798,648 1,573,261
373,862 381,147
2,316,848 2,891,608
1,102,742 595,268
20,720,886 s 20,065,151 s
2,890,943 s 2,651,961 s
8,294,488 7,507,352
930,727 829,023
912,751 891,130
2,045,480 2,420,196
426,215 477,252
6,095 3,708
2,866,324 1,784,331
2,815,945 1,262,168
1,713,689 1,645,877
22,902,657 s 19,472,998 s
Includes General, Special Revenue, and Debt Service Funds. Prior years restated to reflect the elimination
of the Special Assessment Fund as per Statement No. 6 of the Governmental Accounting Standards Board.
Source: City of Pasco, Washington Annual Reports for Prior Years.
148
1997
11,142,259
393,942
2,415,125
1,631,640
450,718
1,963,732
358,544
18,355,960
2,410,603
7,054,178
1,111,765
889,702
2,179,211
580,213
4,114
1,239,988
1,446,515
248,627
17,164,916
CITY OF PASCO, WASHINGTON
PROPERTY TAX RATES · COMPUTATION OF DIRECT AND OVERLAPPING
GOVERNMENTS (PER $1,000 OF ASSESSED VALUEI
Last Ten Fiscal Years
Table 4
CITY OF PASCO TAX RATES: 2001
General Levy $3.0434
Debt service Levy 0.5017
L.I.D. Guaranty Levy 0
Fire/Library Levy 0.0909
SUBTOTAL CITY OF PASCO TAX RATES 3.6360
OTHER GOVERNMENTAL TAX RATES:
State 3.0351
county 2.0338
county -TRAC Bond 0.1888
Pasco School District Maint 6.4330
Port of Pasco 0.4500
SUBTOTAL OTHER TAX RATES 12.1407
TOT AL DIRECT AND OVERLAPPING
TAX RATES s 15.7767
source: Franklin County
154
s
2000 1999 1998 1997
$3.0710 $2.4963 $2.5450 $2.5265
0.5479 0.4456 0.6103 0.6192
0 0 0 0
0.1143 0 0 0
3.7332 2.9419 3.1553 3.1457
3.2864 3.4922 3.5470 3.6538
2.0493 2.0601 2.2660 2.1489
0.1888 0.1888 0.0000 0.0000
6.7376 5.8521 5.7739 5.7158
0.4500 0.4500 0.4500 0.4500
12.7121 12.0432 12.0369 11 .9685
16.4453 s 14.9851 s 15.1922 s 15.1142
CITY OF PASCO, WASHINGTON
COMPUTATION OF LECAL DEBT MARCIN
For the Year Ended December 31, 2001
Table 7
Property Valuation for 2001 Taxes
CENERAL PURPOSES
Limit of 2.5% of Assessed Value
councilmanic:
Capacity (1.5% of Assessed valuel
Less:
c.o. Bonds outstanding
T.R.A.C. Obligation
compensated Absences
Available unvoted -Approved capacity
voter-Approved:
capacity (2.5% of Assessed Valuel
Less:
c.o. Bonds outstanding
S 11 ,794,071
988,966
1,114,767
$5,100,000
Available voter-Approved capacity
Remaining Capacity for ceneral Purposes
UTILITY PURPOSES
voter-Approved:
capacity (2.5% of Assessed Valuel
Available Utility Capacity
OPEN SPACE AND PARK FACILITIES
Voter-Approved:
capacity (2.5% of Assessed value)
Available open space and Park Facilities capacity
TOTAL AVAILABLE DEBT CAPACITY
S 1,031,900,004
S 25,797,500
15,478,500
13,897,804 (13,897,804)
S1,580,696
$25,797,500
5,100,000 (5,100,000)
$20,697,500
$6,799,696
S25.797,500
$25,797,500
$25,797,500
$25,797,500
S 58,394,696
158
CITY OF PASCO, WASHINGTON
REVENUE BOND COVERACE • WATER/SEWER
Last Ten Fiscal Years
Table 9
operating
Expenses
Gross Less Non-cash Net Available Total
operating Expenses and for Debt Annual Bond
Year Revenue City Taxes service Principal Interest Debt service coverage
1992 2,555,128 1,361,607 1,193,521 265,000 140,025 405,025 2.9
1993 4,003,595 1,428,479 2,575,116 290,000 147,576 437,576 5.9
1994 4,526,150 1,541,159 2,984,991 379,145 246,712 625,857 4.8
1995 5,793,640 1,850,745 3,942,895 431,561 635,528 1,067,089 3.7
1996 6,282,135 2,237,673 4,044,462 681,561 626,352 1,307,913 3.1
1997 6,801,422 2,752,582 4,048,840 897,351 589,596 1,486,947 2.7
1998 7,413,618 3,113,259 4,300,359 961,866 513,353 1,475,219 2.9
1999 7,919,100 3,132,032 4,787,068 1,181,866 757,660 1,939,526 2.5
2000 8,467,714 4,768,198 3,699,516 585,000 724,343 1,309,343 2.8
2001 9,030,812 5,403,775 3,627,037 615,000 709,227 1,324,227 2.7
160
CITY OF PASCO
NEW CONSTRUCTION, BANK DEPOSITS AND PROPERTY VALUE
LAST TEN FISCAL YEARS
TABLE 11
NEW CONSTRUCTION (1)
BUILDING
FISCAL PERMITS SINGLE MULTIPLE
YEAR ISSUED DWELLING DWELLING
1992 396 6,226,020 400,000
1993 319 6,840,655 100,000
1994 535 11,294,234 545,007
1995 778 10,211,862 279,562
1996 739 24,788,073 303,614
1997 991 18,575,215
1998 1,186 22,005,761 124,800
1999 1,410 24,229,695
2000 1,586 28,072,891
2001 1,559 49,459,099
OTHER TOTAL
5,194,630 11,820,650
17,064,287 24,004,942
36,170,643 48,009,884
61,523,402 72,014,826
12,966,590 38,058,277
40,657,755 59,232,970
27,117,923 49,248,484
18,960,856 43,190,551
20,493,167 48,566,058
26,066,003 75,525,102
BANK DEPOSITS UN $1,000) (2)
FOR THE FISCAL YEAR ENDED JUNE 30
ASSESSED TAXABLE PROPERTY
VALUATION UN $1,000) (3)
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
SOURCE:
Not Available
Not Available
S 218,268
S 203,109
S 208,404
S 204,396
S 196,078
S 214,892
S 253,363
S 262,943
<1> City of Pasco Building Department
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
<2> Federal Deposit Insurance corporation Market Share Deposit Report
<Tri-Cities commercial banks, excludes savings and loans and credit unions>
(3l Franklin county Assessors Office
162
382,052
423,364
453,075
551,062
599,389
771,916
800,363
880,694
951,615
1,031,900