HomeMy WebLinkAboutResolution No. 5176
COUNCIL RESOLUTION NO.5176
A RESOLUTION ACKNOWLEDGING THE RECEIPT OF THE
COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF
EUGENE FOR THE FISCAL YEAR ENDED JUNE 30, 2016
PASSED: 8:0
REJECTED:
OPPOSED:
ABSENT:
CONSIDERED:December 12, 2016
Comprehensive Annual
Financial Report
Fiscal Year Ended June 30, 2016
City of Eugene, Oregon Jon Ruiz, City Manager
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF EUGENE, OREGON
FISCAL YEAR ENDED JUNE 30, 2016
REPORT PREPARED BY THE CITY
FINANCE DIVISION
Introductory Section
INTRODUCTORY SECTION
CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Year ended June 30, 2016
Table of Contents
Exhibit Page(s)
INTRODUCTORY SECTION
Letter of Transmittal 1 - 7
GFOA Certificate of Achievement 8
Organizational Chart 9
Principal City Officials 10
FINANCIAL SECTION
Independent Auditor’s Report 11 - 13
Management’s Discussion and Analysis 15 - 23
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 1 25
Statement of Activities 2 26
Fund Financial Statements:
Balance Sheet - Governmental Funds 3 27
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds 4 28
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 5 29
Statement of Fund Net Position - Proprietary Funds 6 30 - 31
Statement of Revenues, Expenses, and
Changes in Fund Net Position - Proprietary Funds 7 33
Statement of Cash Flows - Proprietary Funds 8 34 - 35
Notes to Basic Financial Statements 36 - 80
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CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Table of Contents, continued
Schedule Page(s)
FINANCIAL SECTION, CONTINUED
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
General Fund A-1 81
Community Development Fund A-2 82
Notes to Required Supplementary Information 83 - 84
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet B-1 85
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances B-2 86
Special Revenue Funds:
Combining Balance Sheet - Nonmajor Special Revenue Funds C-1 87
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Special Revenue Funds C-2 88
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
Construction and Rental Housing Fund C-3 89
Library, Parks, and Recreation Fund C-4 90
Public Safety Communications Fund C-5 91
Road Fund C-6 92
Solid Waste and Recycling Fund C-7 93
Special Assessment Management Fund C-8 94
Telecom Registration and Licensing Fund C-9 95
Urban Renewal Agency General Fund C-10 96
Urban Renewal Agency Riverfront Fund C-11 97
Urban Renewal Agency Riverfront Program Revenue Fund C-12 98
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CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Table of Contents, continued
Schedule Page(s)
FINANCIAL SECTION, CONTINUED
Other Supplementary Information, continued:
Debt Service Funds:
Combining Balance Sheet - Nonmajor Debt Service Funds D-1 99
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Debt Service Funds D-2 100
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
General Obligation Debt Service Fund D-3 101
Special Assessment Bond Debt Service Fund D-4 102
Urban Renewal Agency Debt Service Fund D-5 103
Capital Projects Funds:
Combining Balance Sheet - Nonmajor Capital Projects Funds E-1 105
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Capital Projects Funds E-2 106
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
General Capital Projects Fund E-3 107
Special Assessment Capital Projects Fund E-4 108
Systems Development Capital Projects Fund E-5 109
Transportation Capital Projects Fund E-6 110
Urban Renewal Agency Capital Projects Fund E-7 111
Urban Renewal Agency Riverfront Capital Projects Fund E-8 112
Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in
Fund Net Position - Budget and Actual:
Ambulance Transport Fund F-1 113
Municipal Airport Fund F-2 114
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CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Table of Contents, continued
Schedule Page(s)
FINANCIAL SECTION, CONTINUED
Other Supplementary Information, continued:
Enterprise Funds, continued:
Schedule of Revenues, Expenses, and Changes in
Fund Net Position - Budget and Actual, continued:
Parking Services Fund F-3 115
Stormwater Utility Fund F-4 116
Wastewater Utility Fund F-5 117
Internal Service Funds:
Combining Statement of Net Position G-1 119
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position G-2 121
Combining Statement of Cash Flows G-3 122 - 123
Schedule of Revenues, Expenses, and Changes in
Fund Net Position - Budget and Actual:
Facilities Services Fund G-4 124
Fleet Services Fund G-5 125
Information Systems and Services Fund G-6 126
Professional Services Fund G-7 127
Risk and Benefits Fund G-8 128
Other Supplementary Schedules:
Schedule of Bonded Debt Transactions H-1 130 - 131
STATISTICAL TABLES SECTION
Government-wide Information:
Net Position by Component I-1 133
Changes in Net Position I-2 134 – 135
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CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Table of Contents, continued
Schedule Page(s)
STATISTICAL TABLES SECTION, CONTINUED
Fund Information:
Fund Balances - Governmental Funds I-3 137
Changes in Fund Balances - Governmental Funds I-4 138 - 139
Taxable Assessed Value and Actual Value of Property I-5 140
Direct and Overlapping Property Tax Rates I-6 141
Property Tax Levies and Collections I-7 142
Ten Principal Property Taxpayers I-8 143
Ratio of Outstanding Debt by Type I-9 144
Ratio of General Bonded Debt Outstanding I-10 145
Direct and Overlapping Governmental Activities Debt I-11 146
Legal Debt Margin - General Obligation Bonded Debt I-12 147
Demographic and Economic Statistics I-13 148
Ten Principal Employers I-14 149
City Government Employees by Function/Program I-15 150
Operating Indicators by Function/Program I-16 151
Capital Asset Statistics by Function/Program I-17 152
AUDIT COMMENTS AND GOVERNMENT AUDITING STANDARDS SECTIONS
Audit Comments:
Independent Auditor’s Report Required by Oregon
State Regulations 155 - 156
Government Auditing Standards:
Government Auditing Standards Report:
Independent Auditor’s Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on
an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 159 - 160
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CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Table of Contents, continued
Schedule Page(s)
AUDIT COMMENTS AND GOVERNMENT AUDITING STANDARDS SECTIONS, CONTINUED
Government Auditing Standards, continued:
OMB Uniform Guidance (Single Audit) Report:
Independent Auditor’s Report on Compliance For Each Major
Federal Program and on Internal Control Over Compliance
Required by OMB Uniform Guidance 163 - 164
Schedule of Findings and Questioned Costs 165 - 166
Schedule of Expenditures of Federal Awards J-1 167 - 169
Notes to Schedule of Expenditures of Federal Awards 170
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Central Services
Finance
City of Eugene
th
100 West 10 Ave., Suite 400
Eugene, Oregon 97401
(541) 682-5022
(541) 682-5802 FAX
www.eugene-or.gov
November 21, 2016
Citizens of Eugene
The Honorable Kitty Piercy, Mayor
Members of the City Council
Jon R. Ruiz, City Manager
It is my pleasure to submit to you the Comprehensive Annual Financial Report (CAFR) of the City of Eugene,
Oregon, for the fiscal year ended June 30, 2016.
Local ordinances and state statutes require that the City of Eugene issue a report on its financial position and activity
within six months of the close of each fiscal year. In addition, this report must be audited in accordance with
generally accepted auditing standards by an independent firm of certified public accountants.
This report consists of management’s representations concerning the finances of the City. Consequently,
responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with management. To provide a reasonable basis for making these representations, management
has established an internal control structure designed to safeguard City assets against loss, theft, or
misappropriation, and to ensure the reliability of financial records for preparing financial statements in conformity
with generally accepted accounting principles (GAAP). The internal control structure has been designed to provide
reasonable, but not absolute, assurance that these objectives are being met. The concept of reasonable assurance
recognizes that:
The cost of the control structure should not exceed the benefits likely to be derived; and
The evaluation of cost and benefits requires estimates and judgments by management.
I believe that the City's internal control structure adequately safeguards assets and provides reasonable assurance
of proper recording of financial transactions. To the best of my knowledge, the enclosed data are presented
accurately in all material respects, along with the disclosures necessary to provide the reader with a reasonable
understanding of the City's financial affairs.
The City’s financial statements were audited by Isler CPA, a firm of licensed certified public accountants. The goal
of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal
year ended June 30, 2016 are free of material misstatements. The independent audit involved examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall financial statement
presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for
rendering an unmodified opinion that the City’s basic financial statements for the fiscal year ended June 30, 2016,
are fairly presented, in all material respects, in conformity with GAAP. The independent auditor’s report on the Basic
Financial Statements is included in the Financial Section of this report.
In addition to meeting the requirements set forth above, the independent audit also was designed to meet the
special needs of federal grantor agencies as provided for in the Federal Single Audit Act and the Office of
Management and Budget’s (OMB) Uniform Guidance. These standards require the independent auditor not only
report on the fair presentation of the basic financial statements, but also on the audited government’s internal
controls and compliance with legal requirements, with special emphasis on the administration of federal awards.
The results of the independent audit for the fiscal year ended June 30, 2016 indicated no instances of material
weaknesses in the internal control structure or significant violations of applicable laws and regulations. The
independent auditor’s reports related specifically to the Single Audit and OMB Uniform Guidance are included in
the Government Auditing Standards Section.
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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the Basic
Financial Statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found
immediately following the independent auditor’s report on the basic financial statements.
City Overview
The City of Eugene was incorporated in 1862, and the citizens adopted the Council/Manager form of government
in 1944. The City Council develops legislation and policies to direct the City organization, and hires a professional
manager (the City Manager) to oversee City of Eugene personnel and operations. The Mayor is elected at-large to
a four-year term and acts as the formal representative of the City and presides over City Council meetings. The City
Council has eight members elected by ward to four-year terms, with one-half of the council elected every two years.
As of July 1, 2015, 163,400 people resided within Eugene’s municipal boundaries, making it Oregon’s second
largest city. City boundaries encompassed 44 square miles in Lane County. The Willamette River runs through the
heart of the City and the McKenzie River joins the Willamette to the north of the City. Eugene is the center of
government and education including County, State and Federal government agencies, and is home to the University
of Oregon. Over the last ten years, Eugene’s population has increased on average by 1.1% annually.
The City provides a full range of municipal services. These services include police, fire, emergency medical
services, municipal court, community planning and development, parks and open space, library, recreational and
cultural activities, airport, wastewater treatment, stormwater management, general public works and administration,
along with other functions associated with a full-service municipal government. These services are provided
primarily to citizens who live within the corporate limits. However, many of the services and facilities operated by
the City are provided for and financed by regional service areas larger than the City. As allowed by state statutes,
the City levies a property tax on real and personal property located within its boundaries.
For financial reporting purposes, the City includes all funds subject to appropriation by the City Council. In addition,
the City includes all governmental organizations and activities for which the City Council is financially accountable.
The City Council also serves as the Urban Renewal Agency Board. Therefore, the financial statements of the Urban
Renewal Agency of the City of Eugene, although legally separate, have been combined with those of the City proper
by including them in the appropriate statements and schedules in this report.
For financial planning and control, the City prepares and adopts an annual budget in accordance with Oregon
Revised Statutes 294.305 through 294.565. Local government budgeting in Oregon is a joint effort between the
people affected by the budget and the appointed and elected officials responsible for adopting the budget. Elected
and appointed officials determine the allocation of resources among the service areas. The State of Oregon
Department of Revenue ensures that the budget is prepared according to the Oregon Local Budget Law. Citizens
provide input to advocate for funding for programs they want and need.
To give the public ample opportunity to participate in the budgeting process, local budget law requires that a Budget
Officer be appointed and a Budget Committee be formed. The Budget Officer draws together necessary information
and prepares the first draft of the budget. The City Manager serves as the Budget Officer. The Budget Committee
then reviews and revises the proposed budget before making its recommendations to the City Council. Notices are
published, budgets are made available for review, and at least two public hearings are held one hearing is held
before the Budget Committee, which is composed of the eight City Councilors and eight appointed citizen members,
and one hearing is held before the City Council. Additionally, opportunities for public testimony are provided at many
Budget Committee meetings. These requirements encourage public participation in the budget-making process and
give public exposure to budgeted programs and fiscal policies before the City Council adopts the budget.
The legally adopted budget is at the fund and department level for operating expenditures, with separate
appropriations established for capital projects, debt service, interfund transfers, and special payments. Budgetary
al comparisons are provided in this
controls are administered internally at a more restrictive level. Budget-to-actu
report for each individual fund for which an appropriated annual budget has been adopted. For the General Fund
and the Community Development Fund, this comparison is presented as required supplementary information in this
report. For all other funds, this comparison is presented as other supplementary information.
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Local Economy
Eugene is located in western Oregon, in the southern Willamette Valley, in close proximity to the Pacific Ocean and
the Cascade Mountain Range. Citizens and visitors enjoy the mild climate, recreation and fitness opportunities, and
the diverse cultural events it has to offer. Interstate 5 connects Eugene to the Portland metropolitan area and
Washington state to the north, and California to the south. State highways provide access to the Cascade Mountains
and the recreational opportunities of eastern Oregon, and to the picturesque coastal towns, state parks and public
beaches to the west.
Eugene’s municipal airport is serviced by five air carriers: Alaska Airlines, Allegiant, American Airlines, Delta, and
United Airlines. Commercial air service links Eugene directly to Denver, Las Vegas, Los Angeles, Oakland,
Phoenix/Mesa, Portland, Salt Lake City, San Francisco, San Jose and Seattle.
Eugene is the largest city in Lane County and the second largest city in Oregon, representing 45.1% of the county’s
and 4.1% of the state’s population. Eugene’s economy typically follows the trends of the state and national
economies. The unemployment rate in the Eugene-Springfield Metropolitan Statistical Area (MSA) rose sharply as
a result of the recession, from an average annual rate of 5.2% in 2007 to a high of 12.3% in 2009, primarily due to
job losses from closure of the City’s largest private employer, Hynix, as well as other job losses in construction,
manufacturing, retail, and professional services. Eugene’s 2015 unemployment rate dropped to 5.9% but remained
0.2% higher than the state as a whole and 0.6% higher than the national average:
AverageAnnualUnemployment
AsaPercentofLaborForce
The two pillars that have historically provided relative stability in Eugene’s economy are the large public sector
employment base and population in-migration. In prior years, the influx of new residents has helped the economy
diversify away from lumber and wood products manufacturing. California has been the largest source of new
residents to the area due to Eugene’s proximity to that state, local environmental and cultural amenities, and
relatively low cost of living. Eugene’s population growth slowed somewhat in the years following the last recession
as the local economy contracted and the labor market weakened. However, population growth rebounded in 2015,
increasing at the fastest rate since 2008.
County, state, and federal government agencies are centered in Eugene, as well as the University of Oregon (UO)
and Lane Community College. Between 2006 and 2015, employment in the educational and health services sectors
increased by 23.0%. In the 2015-16 academic year, 24,125 students were enrolled at UO. The University of Oregon
was ranked within the top 2.0% of U.S. research universities by the Carnegie Foundation in 2010. In fiscal year
2015, the University generated over $114.0 million in sponsored research activity and $8.0 million in licensing
revenue, putting UO among top performers nationally for research institutions. The University is also a major
contributor to Oregon’s economy, generating economic activity estimated at more than $2.3 billion.
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As the local economy has diversified away from dependence on resource-based and manufacturing industries, the
Eugene-Springfield area has also become an increasingly important center for health services in western Oregon.
The University District campus is home to the Center for Medical Education and Research, a partnership among
the University of Oregon, Oregon Health Sciences University and Sacred Heart to train new physicians. The campus
employs more than 1,250 people and serves to strengthen the city’s health care sector. With the federal Affordable
Care Act of 2010 now fully implemented, the number of uninsured Oregonians has dropped, providing greater
payment stability to hospitals, clinics and the city’s economy. Kaiser Permanente, one of the nation’s largest
nonprofit health care providers serving 9.6 million people, recently opened two new clinics in the Eugene market.
The U.S. Department of Veterans Affairs (VA) completed a new $60.0 million, 100,000 square-foot facility in north
Eugene that is expected to employ 265 people. The Oregon Medical Group, a multispecialty doctor’s group,
announced plans for a $27.0 million building upgrade for a clinic set to open in 2017.
Eugene’s high tech manufacturing sector is also on the precipice of a resurgence. Broadcom, a multi-billion dollar
semi-conductor firm announced plans to redevelop the former Hynix plant on the west side of the city. Broadcom
anticipates spending $100.0 million to upgrade the building and $300.0 million for new equipment installation. The
company expects to initially hire 229 employees and create 700 construction jobs. The City’s small burgeoning tech
sector is projected to outpace growth in other industries. The Oregon Employment Department forecasts the tech
sector will grow by 28 percent in Lane County between 2014 and 2024. The City is fostering growth in small tech
companies by working with the Eugene Water and Electric Board (EWEB) to install a fiber network in the downtown
core to provide affordable, high-speed internet for businesses and residents.
Eugene hosted the U.S. Olympic Track and Field Trials in 2016. The University’s venerable Hayward Field held the
event that draws approximately 20,000 visitors. Eugene has also been selected to host the 2021 IAAF World
Outdoor Track and Field Championship, marking the first time this prestigious event has been held in the United
States. Large events are helping to expand the city’s lodging amenities. Hilton Hotels is nearing completion on a
new 120-room hotel in downtown Eugene, Hyatt is scheduled to open a new 124-room hotel just north of downtown
and InterContinental Hotel is scheduled to open a new 100-room hotel near UO sometime in 2017. These and other
developments are helping the city evolve and grow from its traditional lumber and manufacturing based economy.
Eugene is also investing in its transportation system. The City is now midway through a ten-year program of major
street repair projects that accelerated in 2012 when Eugene voters resoundingly approved a $43.0 million bond
measure to repair 76 streets, as well as bicycle and pedestrian projects. FY16 was the second year the voter
approved property taxes were levied for the street repair projects.
The EWEB waterfront property is the largest area available for redevelopment in downtown Eugene. In addition to
working to revitalize the core area of downtown, elected officials and staff from both the City and EWEB have been
working in partnership with community members to determine the desired mix of uses on the site and to transform
the existing industrial site to a downtown riverfront. In 2013, the City Council adopted a series of land use
amendments including new land use designations and special area zoning for the site. The next key steps involve
the selection of a developer to lead the transformation of the waterfront property, negotiations for property
acquisition and a development agreement before any redevelopment scenario can begin. Although it may be some
time before the anticipated uses, including housing and restaurants, are completed, redevelopment of this important
site is moving forward with the goal of creating an urban, active, sustainable riverfront for the entire community to
enjoy.
Long-term Financial Planning
The City of Eugene recognizes the importance of strategic long-term financial planning. Each year, forecasts are
prepared to estimate the financial health of significant funds for the next six fiscal years. These forecasts are
designed to inform policy makers about the long-term impacts of pending budget decisions and other potential
financial dynamics for City operations. The City also utilizes three additional important planning documents: the
Capital Improvement Program,the Multi-Year Financial Plan and the Debt Capacity Analysis.
The largest fund is the General Fund, which is the general operating fund for the City. In preparation for the FY17
budget, the General Fund forecast was updated to provide policy makers with the financial outlook for the fund.
After closing a nearly $30.0 million gap in the General Fund budget in the years following the last recession and
reducing the annual operating budget growth rate from 6.2% in FY03 through FY09 to 2.1% from FY10 through
FY16, the City is projected to have greater fiscal stability in the future. Revenues are projected to grow by 3.7% on
an annual basis from FY17 through FY22, while expenses are projected to grow by 3.9% over the same time period.
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The FY17 Adopted Budget provides funding for current services, while adding a few additional services. However,
the post-recession budget environment continues to be uncertain, and the six-year forecast does foreshadow a
possible $1.0-$2.0 million gap that may arise in the future. The FY17 Adopted Budget includes increased service
levels for library and cultural services after voters approved a five-year library local option levy last November to
provide additional library services to the community. The levy will generate an estimated $2.5 million per year and
support 18.40 full-time equivalent employees to provide additional services that are incorporated into the budget.
The FY17 Adopted Budget also increases support for Cultural Services, the Community Justice Initiative, the
Human Services Commission, CAHOOTS, Human Rights and Neighborhood Involvement, Sister Cities and creates
a reserve account to begin funding work related to the World Track and Field Championships in 2021. FY17 General
Fund budget changes total $2.2 million and non-general fund changes total $3.2 million.
In March 2015, the City Council approved the FY16-21 Capital Improvement Program (CIP). The CIP forecasts the
City’s capital needs over a six-year period based on various long-range plans, goals, and policies. The underlying
strategy of the CIP is to plan for land acquisition, construction, and major maintenance of public facilities necessary
for the safe and efficient management of City assets. A critical element of a balanced CIP is the provision of funds
to preserve or enhance existing facilities and provide new assets which will help the City respond to changing
service needs and community growth. The program is approved every other year and serves as the basis for the
capital budget for the next two fiscal years. The FY16-21 CIP totals $171.2 million in projects with funding secured
or identified from a variety of sources. The capital budget for FY17 totals $41.4 million.
Transportation is the largest CIP category with a total allocation of $62.5 million, of which $54.5 million is dedicated
towards pavement preservation and road maintenance. Airport capital improvements, including the terminal building
expansion, Concourse C addition, automated rental car wash facility, access improvements and preservation and
maintenance projects, will account for $42.1 million. About $21.6 million for public buildings will primarily be
invested in preservation and capital maintenance of existing City facilities. Improvements to preserve and
rehabilitate the City’s wastewater system will be funded with $15.9 million. Under the City’s stormwater program,
drywell decommissioning, stream corridor acquisition, bank stabilization and stream restoration, and system
upgrades and capacity enhancements are to be funded at $15.4 million. Approximately $13.7 million in anticipated
capital spending will be for parks and open space projects.
In January 2015, the City’s Executive Team reviewed the Multi-Year Financial Plan (MYFP) for FY16-21. The MYFP
was subsequently provided to the Mayor and the City’s Budget Committee in April 2015 as part of the FY16 budget
process. The MYFP is a compilation of significant, unfunded challenges and opportunities that the City is expected
to encounter over the next six fiscal years. It serves as a strategic planning tool and helps address Council’s goal
for “Fair, Stable, and Adequate Resources.” It provides an important means to improve the City’s ability to link the
Council goals process, the Capital Improvement Program, the General Fund Six-Year Forecast, other projects or
specific strategic plans, and the annual budget process.
The FY16-21 MYFP identified 59 items with total estimated unfunded costs of about $450.0 million. Some of the
largest unfunded costs by service category include $133.9 million for community centers, $82.7 million for
transportation, $59.1 million for public buildings and facilities, $35.1 million for emergency medical/fire services,
$32.8 million for Municipal Court, and $25.1 million for fleet and radio communications. Many of these items would
also have ongoing fiscal impacts on the operating budget that would also need to be considered in order for the
City’s budget to be sustainable.
With the significant amount of future capital projects, as well as identified unfunded needs, the City also recognizes
the need to be thoughtful and deliberate in planning future debt levels. As a result, the City has developed a Debt
Capacity Analysis that is generally updated every two years in conjunction with the CIP update. This study looks at
not just the legally allowable level of debt, but the level of debt that the community would consider affordable, given
ttee adopted a debt policy limit of
the community’s ability and willingness to pay for that debt. The Budget Commi
net direct debt of no more than 1% of real market value of property. The Debt Capacity Analysis measures future
debt plans against this debt policy limit to determine whether those plans are considered affordable and those
results are included in the CIP. The City’s net direct debt to real market value was 0.07% at the end of FY16.
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City Council Vision and Goals
The City Council adopts goals that provide major policy direction for budget allocations and service delivery. The
City Council adopted the following vision and goals in 2009.
City Council Vision
Value all people, encouraging respect and appreciation for diversity, equity, justice, and social well-being.
We recognize and appreciate our differences and embrace our common humanity as the source of our
strength;
Be responsible stewards of our physical assets and natural resources. We will sustain our clean air and
water, beautiful parks and open spaces, livable and safe neighborhoods, and foster a vibrant downtown,
including a stable infrastructure; and
Encourage a strong, sustainable and vibrant economy, fully utilizing our educational and cultural assets, so
that every person has an opportunity to achieve financial security.
City Council Goals
Safe Community
A community where all people are safe, valued, and welcome.
Sustainable Development
A community that meets its present environmental, economic, and social needs without compromising the ability
of future generations to meet their own needs.
Accessible and Thriving Culture and Recreation
A community where arts and outdoors are integral to our social and economic well-being and are available to
all.
Effective, Accountable Municipal Government
A government that works openly, collaboratively, and fairly with the community to achieve measurable and
positive outcomes and provide effective, efficient services.
Fair, Stable and Adequate Financial Resources
A government whose ongoing financial resources are based on a fair and equitable system of revenues and
are adequate to maintain and deliver municipal services.
Major New Initiatives
The City strives to make progress on all of the City Council goals, as circumstances and funding allow. Two of the
major new initiatives reflect several of those goals:
Corporate Renovation Project reflects Effective, Accountable Municipal Government;
Expanded Library Services reflects Accessible and Thriving Culture and Recreation and Fair, Stable and
Adequate Financial Resources.
Throughout FY16, staff across departments collaborated to examine City business and management operations.
The effort referred to as the Corporate Renovation Project, will allow the City to improve its execution of key
business functions such as paying bills, preparing and monitoring the budget, managing human resources,
recording financial transactions and more. Goals for this process include:
Get the most from the City’s investment.
Avoid costly software customizations and redundant systems.
Improve operation effectiveness.
Contribute to building a strong and resilient workforce of 2025.
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and the construction and
Among the services and
bike paths, traffic lights,
sidewalks, street trees,
Wastewater Treatment
programs managed by
maintenance of parks
engineering services;
Police Auditor
Boards and Commissions
Department are the
Public Works
Plant; the Eugene
the Public Works
and street lights;
Airport; streets,
Citizen Advisory
and sewers.
provides emergency and citizens. The department
and community services
calls to protect the lives,
community and prevent
also provides proactive
which promote a safer
rights, and property of problem management
incident response to
Municipal Court
This department
Police
Judge
crime.
City of Eugene Organizational Chart
By focusing on planning, Specific services include
building safety activities, development in Eugene.
this department aids the
economic, and physical
services, building code
City Council in setting
the course for social,
long-range planning,
land use application
processing, permit
Development
development, and
enforcement, and
Planning &
development.
community
Assistant
City Manager
Citizens of Eugene
City Council
learning, recreation, and
for Performing Arts, the
include the Hult Center
Eugene Public Library,
The facilities managed
Library, Recreation,
cultural experiences.
Mayor
& Cultural Services
broaden community
community centers,
senior centers, and
The mission of this
by this department
access to lifelong
department is to
swimming pools.
City Manager
Eugene/Springfield area
districts that contract for
responds to regional
Fire & Emergency hazardous materials
emergency medical
Medical Services
provides fire and and the adjacent
This department
department also
services to the
services. The
incidents.
compensation, safety, liability
and Municipal Court services
risk services including hiring,
support for the City Manager
City finances; personnel and
The City Prosecutor’s Office
construction oversight and
training and development,
and elected officials; legal buildings; management of
services; facility planning, emergency management.
labor relations, employee
The services provided by
Central Services include
are also provided within
services; neighborhood
Central Services
preservation of public
services; information
and property claims
and Electric Board
Eugene Water
benefits, workers’ management and
maintenance and
Toxics Board
Central Services.
City Manager's
Office
9
CITY OF EUGENE, OREGON
Mayor and City Council as of June 30, 2016
Term Expires
Name
Mayor: Kitty Piercy January 2017
Councilors: George Brown (Ward 1) January 2017
Betty Taylor (Ward 2) January 2017
Alan Zelenka (Ward 3) January 2019
George Poling (Ward 4) January 2019
Mike Clark (Ward 5) January 2019
Greg Evans (Ward 6) January 2019
Claire Syrett (Ward 7) January 2017
Chris Pryor (Ward 8) January 2017
Principal Officials
Jon R. Ruiz, City Manager
Sarah Medary, Assistant City Manager
Glenn Klein, City Attorney
Kristie Hammitt, Central Services Executive Director
Joe Zaludek, Acting Fire and Emergency Medical Services Chief
Renee Grube, Library, Recreation, and Cultural Services Executive Director
Sarah Medary, Planning and Development Executive Director
Pete Kerns, Chief of Police
Kurt Corey, Public Works Executive Director
10
FINANCIAL SECTION
Financial Section
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT!
5Lhw{REPORT
TotheHonorableMayorandMembersoftheCityCouncil
CityofEugene,Oregon
ReportontheFinancialStatements
Wehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivities,thebusinesstype
onoftheCityofEugene,Oregon
activities,eachmajorfund,andtheaggregateremainingfundinformati
ΛͻƷŷĻ/źƷǤͼΜasofandfortheyearendedJune30,2016,andtherelatednotestothefinancialstatements,
whichcollectivelycomprisethe/źƷǤƭbasicfinancialstatementsaslistedinthetableofcontents.
ağƓğŭĻƒĻƓƷƭResponsibilityfortheFinancialStatements
Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsin
accordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica;thisincludes
thedesign,implementation,andmaintenanceofinternalcontrolrelevanttothepreparationandfair
presentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudor
error.
!ǒķźƷƚƩƭResponsibility
Ourresponsibilityistoexpressopinionsonthesefinancialstatementsbasedonouraudit.Weconducted
ourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmericaand
thestandardsapplicabletofinancialauditscontainedin GovernmentAuditingStandards,issuedbythe
ComptrollerGeneraloftheUnitedStates.Thosestandardsrequirethatweplanandperformtheauditto
obtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterial
misstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresin
thefinancialstatements.TheproceduresselecteddependontheaudźƷƚƩƭjudgment,includingthe
assessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudor
error.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheĻƓƷźƷǤƭ
preparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatare
appropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessof
theĻƓƷźƷǤƭinternalcontrol.Accordingly,weexpressnosuchopinion.Anauditalsoincludesevaluating
theappropriatenessofaccountingpoliciesusedandthereasonablenessofsignificantaccounting
estimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancial
statements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisfor
ourauditopinions.
1976 Garden Ave., Eugene OR 97403
541.342.5161 www.islercpa.com
11
Opinions
Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,the
respectivefinancialpositionofthegovernmentalactivities,thebusinesstypeactivities,eachmajorfund,
andtheaggregateremainingfundinformationoftheCityasofJune30,2016,andtherespectivechanges
infinancialpositionand,whereapplicable,cashflowsthereoffortheyearthenendedinaccordancewith
accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.
Othermatters
RequiredSupplementaryInformation
AccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequirethattheƒğƓğŭĻƒĻƓƷƭ
ugh23),theschedulesofrevenues,expendituresandchangesin
discussionandanalysis(pages15thro
fundbalancesΑbudgetandactualoftheGeneralFundandtheCommunityDevelopmentFund(pages81
through82)(theͻĬǒķŭĻƷğƩǤƭĭŷĻķǒƌĻƭͼΜͲthescheduleofthe/źƷǤƭProportionateShareoftheNet
PensionAsset/(Liability)(page83),thescheduleofOPEBfundingprogress(page83),andthebudgetto
GAAPreconciliation(page84),bepresentedtosupplementthebasicfinancialstatements.Such
information,althoughnotapartofthebasicfinancialstatements,isrequiredbytheGovernmental
gthe
AccountingStandardsBoard,whoconsidersittobeanessentialpartoffinancialreportingforplacin
basicfinancialstatementsinanappropriateoperational,economic,orhistoricalcontext.
WehaveappliedcertainlimitedprocedurestoƒğƓğŭĻƒĻƓƷƭdiscussionandanalysis,thescheduleofthe
/źƷǤƭProportionateShareoftheNetPensionAsset(Liability),andthescheduleofOPEBfundingprogress
inaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica,whichconsisted
ofinquiriesofmanagementaboutthemethodsofpreparingtheinformationandcomparingthe
informationforconsistencywithƒğƓğŭĻƒĻƓƷƭresponsestoourinquiries,thebasicfinancialstatements,
andotherknowledgeweobtainedduringourauditofthebasicfinancialstatements.Wedonotexpress
anopinionorprovideanyassuranceontheinformationbecausethelimitedproceduresdonotprovideus
withsufficientevidencetoexpressanopinionorprovideanyassurance.
Ourauditwasconductedforthepurposeofformingopinionsonthefinancialstatementsthatcollectively
comprisetheCitǤƭbasicfinancialstatements.Thebudgetaryschedulesdescribedaboveonpages8182
andthebudgettoGAAPreconciliationonpage84aretheresponsibilityofmanagementandwerederived
fromandrelatedirectlytotheunderlyingaccountingandotherrecordsusedtopreparethebasic
AAPreconciliationhavebeensubjectedto
financialstatements.ThebudgetaryschedulesandbudgettoG
theauditingproceduresappliedintheauditofthebasicfinancialstatementsandcertainadditional
procedures,includingcomparingandreconcilingsuchinformationdirectlytotheunderlyingaccounting
andotherrecordsusedtopreparethebasicfinancialstatementsortothefinancialstatements
themselves,andotheradditionalproceduresinaccordancewithauditingstandardsgenerallyacceptedin
theUnitedStatesofAmerica.Inouropinion,thebudgetaryschedulesandbudgettoGAAPreconciliation
arefairlystated,inallmaterialrespects,inrelationtothebasicfinancialstatementsasawhole.
12
OtherInformation
Ourauditwasconductedforthepurposeofformingopinionsonthefinancialstatementsthatcollectively
comprisethe/źƷǤƭbasicfinancialstatements.Theintroductorysection(pages1through10);other
supplementaryinformation(pages85through128);othersupplementaryschedules(page129through
131)andstatisticaltablessection(pages133through152)arepresentedforpurposesofadditional
analysisandarenotarequiredpartofthebasicfinancialstatements.Theaccompanyingscheduleof
expendituresoffederalawards(pages166through168)ispresentedforpurposesofadditionalanalysis
0,UniformAdministrative
asrequiredbyTitle2U.S.CodeofFederalRegulations(CFR)Part20
Requirements,CostPrinciples,andAuditRequirementsforFedralAwards,andisalsonotarequiredpart
ofthebasicfinancialstatements.Theothersupplementaryinformation,othersupplementaryschedules,
andthescheduleofexpendituresoffederalawardsaretheresponsibilityofmanagementandwere
derivedfromandrelatedirectlytotheunderlyingaccountingandotherrecordsusedtopreparethebasic
financialstatements.Suchinformationhasbeensubjectedtotheauditingproceduresappliedintheaudit
ofthebasicfinancialstatementsandcertainadditionalprocedures,includingcomparingandreconciling
cordsusedtopreparethebasic
suchinformationdirectlytotheunderlyingaccountingandotherre
financialstatementsortothebasicfinancialstatementthemselves,andotheradditionalproceduresin
accordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica.Inouropinion,
theinformationisfairlystated,inallmaterialrespects,inrelationtothebasicfinancialstatementstaken
asawhole.
Theintroductoryandstatisticaltablessectionhavenotbeensubjectedtotheauditingproceduresapplied
intheauditofthebasicfinancialstatementsand,accordingly,wedonotexpressanopinionorprovide
anyassuranceonthem.
OtherReportingRequiredby GovernmentAuditingStandards
Inaccordancewith GovernmentAuditingStandards,wehavealsoissuedourreportdatedNovember21,
2016,onourconsiderationofthe/źƷǤƭinternalcontroloverfinancialreportingandonourtestsofits
compliancewithcertainprovisionsoflaws,regulations,contracts,andgrantagreementsandother
atreportistodescribethescopeofourtestingofinternalcontrolover
matters.Thepurposeofth
financialreportingandcomplianceandtheresultsofthattesting,andnottoprovideanopinionon
internalcontroloverfinancialreportingoroncompliance.Thatreportisanintegralpartofanaudit
performedinaccordancewith GovernmentAuditingStandards inconsideringthe/źƷǤƭinternalcontrol
overfinancialreportingandcompliance.
ReportonOtherLegalandRegulatoryRequirements
Inaccordancewiththe MinimumStandardsofAuditsofOregonMunicipalCorporations,wehaveissued
ourreportdatedNovember21,2016onourconsiderationofthe/źƷǤƭcompliancewithcertainprovisions
oflawsandregulations,includingtheprovisionsofOregonRevisedStatutesasspecifiedinOregon
AdministrativeRules.Thepurposeofthatreportonpages155to156istodescribethescopeofour
testingofcomplianceandtheresultsofthattestingandnottoprovideanopiniononcompliance.
ISLERCPA
ByGaryIskra,CPA,amember
Eugene,Oregon
November21,2016
13
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14
Management’s Discussion and Analysis
The management of the City of Eugene, Oregon (City) presents this narrative overview to facilitate both a short and a
long-term analysis of the financial activities of the City for the fiscal year ended June 30, 2016. This Management’s
Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the
date of the independent auditor’s report. Additional information outside the scope of this analysis can be found in the
Letter of Transmittal.
Financial Highlights
The City’s total assets and deferred outflows of resources at June 30, 2016 increased $3.4 million from $997.3
million to $1,000.7 million.
The City’s total liabilities and deferred inflows of resources increased $26.9 million from $198.8 million to $225.7
million. The increase was primarily due an increase of $75.4 million in net pension liability offset by a $40.2 million
decrease in deferred inflows of resources related to pensions.
The net position of the City (assets less liabilities) at June 30, 2016 decreased $23.5 million from $798.6 million to
$775.1 million. The City’s unrestricted portion of net position is $22.7 million.
At June 30, 2016, the General Fund’s fund balance was $58.2 million, an increase of $17.2 million from the
previous year. Of the General Fund’s fund balance $19.3 million is unassigned.
The City’s pension liability at June 30, 2016 increased $105.9 million from a pension asset of $30.5 million to a pension
liability of $75.4 million. The increase in the pension liability was the result of lower than projected investment earnings
Moro
on pension plan assets and the Oregon Supreme Court’s decision. The Court’s decision reversed a significant
portion of the reductions that the 2013 Oregon Legislature made to future cost of living adjustments. The reversal
increased the benefits projected to be paid compared to those developed in the prior actuarial valuation, and
consequently increased the plan liabilities.
Overview of the Financial Statements
The following discussion and analysis is intended to serve as an introduction to the City’s basic financial statements and
other required supplementary information. The City’s basic financial statements comprise three components:
1. Government-wide financial statements
2. Fund financial statements
3. Notes to the basic financial statements
Government-wide financial statements.
The government-wide financial statements are designed to provide readers
with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and deferred outflows of resources and
liabilities and deferred inflows of resources, with the difference between the two reported as net position.
The Statement of Activities presents information showing how the City’s net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will result in cash flows in a future fiscal period. Examples of such items include earned, but uncollected
property taxes, and earned, but unused compensated absences.
Both of the government-wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all, or
a significant portion of, their costs through user fees and charges (business-type activities).
The governmental activities of the City include the following:
Central services
Fire and emergency medical services
Library, recreation, and cultural services
Planning and development
Police
Public works
15
The business-type activities of the City include the following:
Ambulance transport
Municipal airport
Parking services
Stormwater utility
Wastewater utility
The government-wide financial statements include not only the City itself (known as the primary government), but also a
legally separate Urban Renewal Agency (URA) for which the City is financially accountable. Although legally separate,
the URA’s governing body is identical to the City’s, and because the services of the URA are exclusively for the benefit
of the City, it is included as an integral part of the primary government.
The government-wide financial statements can be found at Exhibits 1 and 2 in the basic financial statements.
Fund financial statements.
A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The City uses fund accounting to demonstrate
transparency and ensure compliance with finance-related legal requirements. All of the funds of the City can be divided
into two categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for activities where the emphasis is placed on
available financial resources, rather than upon net income determination. Therefore, unlike the government-wide
financial statements, governmental fund financial statements focus on the acquisition and use of current spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government-wide financial statements. By doing so, readers may better understand the long-term
impact of the government’s near-term financial decisions. Both the governmental fund Balance Sheet and the
governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities. These reconciliations can be found
at Exhibits 3 and 5 in the basic financial statements.
The City maintains 21 individual governmental funds. Information is presented separately in the governmental fund
Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for
those funds that are considered significant (major) to the City taken as a whole. These financial statements report five
major funds: General Fund, Community Development Special Revenue Fund, General Obligation Debt Service Fund,
General Capital Projects Fund, and the Systems Development Capital Projects Fund. Data from the other 16
governmental funds are combined into a single, aggregated presentation. Summary fund data by fund-type for these
nonmajor governmental funds is provided as other supplementary information in the form of combining statements at B-
1 and B-2 of this report. Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements at C-1, C-2, D-1, D-2, E-1, and E-2.
The City adopts an annual appropriated budget for all governmental funds. To demonstrate compliance with the
budget, budgetary comparison statements have been provided for the General Fund and the Community Development
Fund as required supplementary information at A-1 and A-2. Budgetary comparisons for all other governmental funds
have been provided as other supplementary information at C-3 through C-12, D-3 through D-5, and E-3 through E-8.
The governmental fund financial statements can be found at Exhibits 3 and 4 in the basic financial statements.
Proprietary funds. Proprietary funds are used to account for activities where the emphasis is placed on net position.
The City maintains two different types of proprietary funds – enterprise funds and internal service funds. Enterprise
funds are used to report the same functions presented as business-type activities in the governmental-wide financial
statements. The City uses enterprise funds to account for its ambulance transport, municipal airport, parking services,
stormwater utility, and wastewater utility operations. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to
account for engineering services, facilities services, fleet services, information systems and services, and risk and
benefits management activities. Because internal service funds predominantly benefit governmental rather than
business-type functions, their assets, deferred outflows of resources, liabilities, and deferred inflows of resources have
been included with the governmental activities in the government-wide financial statements.
16
The enterprise funds, all of which are considered to be major funds of the City, are reported separately as proprietary
fund financial statements in the basic financial statements. Conversely, all internal service funds are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service
funds is provided as other supplementary information in the form of combining statements at G-1, G-2, and G-3.
The City adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance with the budget,
budgetary comparison statements have been provided for the enterprise funds as other supplementary information at
F-1 through F-5. Budgetary comparisons for the internal service funds are provided as other supplementary information
at G-4 through G-8. The proprietary fund financial statements can be found at Exhibits 6, 7, and 8 in the basic financial
statements.
Notes to the basic financial statements.
The notes provide additional information that is essential for a full
understanding of the data provided in the government-wide and fund financial statements. They are an integral part of
the financial statements and should be read in conjunction with them.
Required supplementary information.
In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning budgetary comparisons for the General
Fund and Community Development Fund, information about the City’s progress in funding its obligation to provide
pension and other post-employment benefits to its employees, and the budget to GAAP reconciliation schedule.
Other supplementary information
. The combining statements and schedules referred to earlier and the schedule of
bonded debt transactions follow the required supplementary information in this report.
Government-wide Financial Analysis
Net position may serve over time as a useful indicator of a government’s financial health. In the case of the City, assets
and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $775.1 million at the close
of the fiscal year ending June 30, 2016, a decrease of $23.5 million.
City of Eugene's Net Position
Governmental ActivitiesBusiness-type ActivitiesTotal
201620152016201520162015
Capital assets$430,260,782432,274,656251,116,579245,767,377681,377,361678,042,033
Other assets263,714,528261,400,08636,710,01945,807,263300,424,547307,207,349
Deferred outflows15,319,7769,762,2623,607,9952,336,19418,927,77112,098,456
Total assets and
deferred outflows 709,295,086703,437,004291,434,593293,910,8341,000,729,679997,347,838
Noncurrent liabilities130,044,90375,640,89424,390,96110,325,085154,435,86485,965,979
Other liabilities44,161,69844,929,7477,347,6257,973,45051,509,32352,903,197
Deferred inflows15,972,03948,323,8883,761,61211,564,32419,733,65159,888,212
Total liabilities and
deferred inflows190,178,640168,894,52935,500,19829,862,859225,678,838198,757,388
Net position:
Net investment in
capital assets410,543,209412,174,294251,116,579245,767,377661,659,788657,941,671
Restricted82,996,07278,549,6927,675,14111,391,05190,671,21389,940,743
Unrestricted25,577,16543,818,489(2,857,325)6,889,54722,719,84050,708,036
Total net position$519,116,446534,542,475255,934,395264,047,975775,050,841798,590,450
The largest portion of the City’s net position, $661.7 million, is its investment in capital assets. The City’s investment in
capital assets is reported net of related debt. Capital assets do not represent readily available resources to be used for
ongoing operations or to liquidate existing liabilities.
17
The remaining portion of the City’s net position consists of restricted and unrestricted resources. The restricted portion
of the City’s net position is $90.7 million which represents resources that are subject to external restrictions as to how
they may be used. This category increased $0.7 million in the fiscal year ending June 30, 2016. The City’s unrestricted
portion of net position is $22.7 million.
City of Eugene's Changes in Net Position
Governmental ActivitiesBusiness-type ActivitiesTotal
Revenues:201620152016201520162015
Program revenues:
Fees, fines, and charges for services$39,856,05543,322,83666,229,80863,287,964106,085,863106,610,800
Operating grants and contributions14,585,69613,914,474141,927563,21114,727,62314,477,685
Capital grants and contributions1,844,0222,647,3147,764,2906,693,0129,608,3129,340,326
General revenues:
Taxes116,242,752111,255,92300116,242,752111,255,923
Grants and contributions not restricted
to specific programs4,153,9284,095,171004,153,9284,095,171
Contributions in lieu of taxes12,674,78212,204,2630012,674,78212,204,263
Franchise fees on telecom
providers revenues27,751,4598,482,8270027,751,4598,482,827
Unrestricted investment earnings1,120,714765,440151,851119,1261,272,565884,566
Total revenues218,229,408196,688,24874,287,87670,663,313292,517,284267,351,561
Direct expenses:
Central services35,039,86530,648,1100035,039,86530,648,110
Fire and emergency medical services39,074,21219,204,4950039,074,21219,204,495
Library, recreation, and cultural services34,208,70723,232,5400034,208,70723,232,540
Planning and development20,039,94513,403,6330020,039,94513,403,633
Police68,070,65037,337,5140068,070,65037,337,514
Public works38,204,11628,492,7040038,204,11628,492,704
Interest on long-term debt4,480,4884,463,026004,480,4884,463,026
Ambulance transport009,754,4705,093,1419,754,4705,093,141
Municipal airport0014,688,01011,003,96214,688,01011,003,962
Parking services005,366,0614,031,5805,366,0614,031,580
Stormwater utility0018,313,80012,588,68918,313,80012,588,689
Wastewater utility0028,816,56919,976,42828,816,56919,976,428
Total direct expenses239,117,983156,782,02276,938,91052,693,800316,056,893209,475,822
Indirect expense allocation*(3,660,000)(3,534,000)3,660,0003,534,00000
Total expenses235,457,983153,248,02280,598,91056,227,800316,056,893209,475,822
Change in net position before transfers(17,228,575)43,440,226(6,311,034)14,435,513(23,539,609)57,875,739
Transfers1,802,5462,202,900(1,802,546)(2,202,900)00
Change in net position after transfers(15,426,029)45,643,126(8,113,580)12,232,613(23,539,609)57,875,739
Net position July 1534,542,475488,899,349264,047,975251,815,362798,590,450740,714,711
Net position June 30$519,116,446534,542,475255,934,395264,047,975775,050,841798,590,450
* The direct expenses above do not include the indirect expense allocation that is reported in the Statement of Activities (Exhibit 2).
Governmental activities.
The change in net position for governmental activities before transfers decreased by $60.7
million. The decrease was driven by:
Revenues increased by $21.5 million, primarily due to a $19.3 million legal settlement for franchise fees on
telecom providers.
Direct expenses increased by $82.3 million in total, which was primarily due to an increase in pension expense.
18
This next chart compares revenues and expenses for the individual governmental activities for the current year.
Governmental Activities
RevenuesExpenses
Revenues and Expenses
8.0
Central services
35.0
2.6
Fire & EMS
39.1
7.6
LRCS
34.2
12.3
PDD
20.0
6.0
Police
68.1
19.8
Public works
38.2
Interest on debt
4.5
(in millions of dollars)
The next chart shows the percent of the total for each source of revenue supporting governmental activities. As the
chart reflects, most governmental activities relied on taxes for support.
Fees, fines, and charges for services (18.3%)
Governmental Activities
Revenues by Source
Operating grants and contributions (6.7%)
Capital grants and contributions (0.8%)
0.5%
12.7%
18.3%
Taxes (53.3%)
5.8%
6.7%
1.9%
Grants and contributions not restricted to
0.8%
specific programs (1.9%)
Contributions in lieu of taxes (5.8%)
53.3%
Franchise fees on telecom providers
revenues (12.7%)
Unrestricted investment earnings (0.5%)
Business-type activities.
The change in net position for business-type activities, before transfers, decreased $20.7
million. The decrease was driven by:
Program revenues increased by $3.6 million, primarily due to a $2.9 million increase in fees, fines, and charges
for services.
Direct expenses increased by $24.2 million, which was primarily due to a $19.6 million increase in pension
expense.
19
The following chart compares revenues to expenses by individual business-type activity for the fiscal year. In
comparison to governmental activities, business-type activities typically recover their costs through program revenues.
Business-type Activities
Revenues and Expenses
RevenuesExpenses
8.3
Ambulance transport
9.8
16.9
Municipal airport
14.7
6.7
Parking services
5.4
17.6
Stormwater utility
18.3
24.7
Wastewater utility
28.8
(in millions of dollars)
The chart below shows that 89.1% of revenues for business-type activities are generated from fees, fines, and charges
for services. Capital grants and contributions were derived predominantly from grants from the Federal Aviation
Administration and the donation of infrastructure stemming from the development of new residential areas
Business-type Activities
Revenues by Source
Fees, fines, and charges for services (89.1%)
10.5%
0.2%
Operating grants and contributions (0.2%)
0.2%
Capital grants and contributions (10.5%)
Unrestricted investment earnings (0.2%)
89.1%
Capital assets
. The City’s investment in capital assets for its governmental and business-type activities as of June 30,
2016 amounted to $681.2 million (net of accumulated depreciation). The investment in capital assets includes land,
rights-of-way, construction in progress, buildings and equipment, improvements other than buildings (such as parks and
park improvements), storm sewers and trunk sewers (stormwater and wastewater systems), and infrastructure (such as
roads and sidewalks).
20
City of Eugene's Capital Assets, Net of Accumulated Depreciation
Governmental ActivitiesBusiness-type ActivitiesTotal
201620152016201520162015
Land$73,650,73871,767,28417,202,64017,202,64090,853,37888,969,924
Construction in progress13,785,63210,783,05920,384,4659,003,21534,170,09719,786,274
Buildings and equipment140,792,683146,135,11139,555,10940,428,114180,347,792186,563,225
Improvements other
than buildings39,812,03439,843,00242,201,88945,955,62282,013,92385,798,624
Storm sewers and
trunk sewers00131,772,476133,177,786131,772,476133,177,786
Infrastructure162,219,695163,746,20000162,219,695163,746,200
$430,260,782432,274,656251,116,579245,767,377681,377,361678,042,033
Major capital asset changes during the fiscal year include additions of $14.4 million in construction in progress and
deletions of $6.2 million in buildings and equipment.
Additional information on the City’s capital assets can be found in the Notes to Basic Financial Statements (Note 4E).
Bonded Debt.
At the end of the fiscal year, the City had total liabilities and deferred inflows of resources of $225.7
million. Of this amount, $76.6 million represented outstanding bonded indebtedness. Outstanding bonded debt
included $16.6 million in general obligation bonds to be serviced by general property taxes, $0.2 million in limited tax
improvement bonds to be serviced by payments from property owners benefitting from the improvements, and $58.2
million in limited tax pension bonds to be repaid from existing revenue sources, all backed by the full faith and credit of
the City. The remainder of the City’s bonded debt includes $0.4 million in certificates of participation serviced by
specific fund revenues and $1.2 million in tax increment bonds to be repaid from tax increment revenues.
City of Eugene's Bonded Debt
Governmental ActivitiesBusiness-type ActivitiesTotal
201620152016201520162015
General obligation bonds$15,625,00018,990,3000015,625,00018,990,300
Certificates of participation 390,000570,00000390,000570,000
Limited tax bonds 48,267,92849,893,21410,137,54010,489,16658,405,46860,382,380
Tax increment bonds1,222,0003,300,000001,222,0003,300,000
Deferred amounts949,320154,3060(13,865)949,320140,441
$66,454,24872,907,82010,137,54010,475,30176,591,78883,383,121
The City’s bonded debt decreased $6.8 million during the year as the result of debt service payments.
Moody’s Investors Service rates the City’s publicly offered bond issues. The City’s most recent ratings from Moody’s
are as follows:
Aa1 for general obligation bonds (June 2016) with the following exceptions:
Aa2 for the Atrium full faith and credit obligations.
The Oregon Local Governments Limited Tax Pension Obligations, Series 2002, are insured by Ambac Assurance
and were rated Aaa at issuance. Subsequent to issuance, Ambac Assurance was downgraded by Moody’s
Investors Service to Caa2. In January 2014, Moody’s Investors Service downgraded the underlying rating on
Oregon Local Governments Limited Tax Pension Obligations, Series 2002 to A3 from Aa3 in conjunction with a
rating methodology change related to pool financings. In April 2011, Ambac Assurance severed their relationship
with Moody’s requesting that Ambac ratings be withdrawn. Moody’s ratings on securities insured by Ambac will be
maintained at the published underlying rating, or Aa3. The pension obligations were issued as one offering for
certain Oregon cities, counties, and special districts. The City of Eugene’s share of the total pension obligations on
which the rating was based is 29.7%.
21
Under Oregon Revised Statutes, general obligation debt issues are limited to 3.0% of the real market value of all
taxable property within the City’s boundaries. The $15.6 million in general obligation debt applicable to this limit is well
below the $688.0 million ceiling. The City’s net direct general obligation bonded debt per capita is $96.
Additional information on the City’s bonded debt can be found in the Notes to Basic Financial Statements (Note 4H).
Fund-based Financial Analysis
As previously discussed, the City uses fund accounting to demonstrate transparency and ensure compliance with
finance-related legal requirements.
.
Governmental funds The focus of the City’s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City’s requirements for
funding day-to-day operations. Significant issues regarding the governmental funds are listed below.
As of the end of the fiscal year, the City’s governmental funds reported a combined ending fund balance of $149.0
million, an increase of $20.3 million in comparison to the prior year. $3.2 million of the fund balance is nonspendable
because it consists of the following: 1) prepaid expenditures, 2) debt service, 3) inventories, and 4) assets held for
resale. The remaining $145.8 million of fund balance was classified as follows.
$61.2 million was restricted due to external limits on how the resources may be used.
$13.3 million was committed as a result of specific constraints placed on the use of the resources per City
ordinance.
$51.5 million was assigned per City Council’s intent to use these resources for a specific purpose:
unappropriated ending fund balance, reserve for revenue shortfall, balancing the next year’s budget, and
uncompleted capital projects are the primary components.
$19.8 million was unassigned and is available to be used at the government’s discretion, subject to fund
limitations.
The fund balance of the City’s General Fund increased $17.2 million from $41.0 million to $58.2 million during the
current fiscal year. The increase was primarily due to an $18.75 million legal settlement of Franchise fees on telecom
providers.
The fund balance in the Community Development Fund decreased $0.5 million from $3.7 million to $3.2 million during
the fiscal year. The decrease was in part due to a $1.5 million decrease in revolving loan repayments, which was offset
by a $1.2 million decrease in debt service payments.
The fund balance in the General Obligation Debt Service Fund decreased $0.1 million from $0.4 million to $0.3 million
during the fiscal year. The decrease was due to the issuance of the General Obligation and Refunding Bonds, Series
2016.
The fund balance in the General Capital Projects Fund increased $0.4 million from $17.1 million to $17.5 million during
the fiscal year. The increase in fund balance was primarily the result of a $2.5 million increase in proceeds from debt
issuance that were offset by a $2.3 million decrease in transfers from the General Fund for capital projects.
The fund balance in the Systems Development Capital Projects Fund increased $3.0 million from $20.9 million to $23.9
million during the fiscal year. The increase was primarily due to the accumulation of resources for future park
developments.
.
Proprietary funds The City’s proprietary fund statements provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net position and its percent to total net position of each proprietary fund are as follows:
Unrestricted PercentofTotal
Fund Name Net Position Net Position
Ambulance Transport $ (4.0) million (124.8)%
Municipal Airport 0.1 million 0.1 %
Parking Services 0.9 million 5.6 %
Stormwater Utility 1.0 million 1.6 %
Wastewater Utility (5.1) million (6.1)%
22
Total business-type net position (excluding the consolidation of internal service fund activities) decreased $7.9 million in
the fiscal year. The decrease in net position was primarily due to a $19.6 million increase in pension expense that was
offset by a $2.5 million increase in operating revenues.
Significant issues regarding proprietary funds are as follows:
The Ambulance Transport Fund had a negative net position of $3.2 million. The net deficit is the result of a
$4.1 million increase in the Fund’s pension liability, which went from a $1.2 million pension asset to a $2.9
million pension liability.
The Wastewater Utility Fund had a negative change in net positon of $5.5 million. The negative change is the
result of a $7.4 million increase in the Fund’s pension liability, which went from a $2.3 million pension asset to
a $5.1 million pension liability.
Other factors concerning the finances of proprietary funds can be found in the previous discussion of the City’s
business-type activities.
General Fund Budgetary Highlights
The City’s final General Fund budget differs from the original budget in that it contains carry-forward appropriations for
various programs and projects, and supplemental appropriations approved during FY 2016. As a result, the final fiscal
year 2016 budget for the General Fund increased by $3.8 million. The primary reasons for this increase were as
follows:
$2.3 million in contractual obligations to vendors
$1.5 million for one-time funding requests
These changes were partially funded by increases of $1.2 million in taxes, $1.0 million in intergovernmental revenues
(grant funding), $0.5 million in charges for services, and $0.1 million in fines and forfeitures. The remaining funding of
$1.0 million is from unspent resources from the prior year.
The difference between the budget and actual FY16 results is recorded as an adjustment to budgeted FY17 Beginning
Working Capital (BWC). The FY17 BWC adjustment is an increase of $20.3 million. This means that the aggregated
beginning resources for FY17 were underestimated by that amount when the budget was prepared in early 2016. The
under-estimate was primarily due to a legal settlement on franchise fees of $18.75 million.
Economic Factors and Next Year’s Budgets and Rates
During the preparation of the budget for the ensuing fiscal year, the long-term impacts of the local economy were
examined in conjunction with business decisions made by the City. The following were the major assumptions used in
developing the FY17 budget:
Property tax revenues were expected to increase 4.5%.
Salaries for non-represented employees and employees covered under collective bargaining agreements were
expected to increase 2.1%.
Health benefit rates were increased by 4.9%.
Retirement costs were expected to range from 22.05% to 29.5% of payroll, depending on which pension plan the
employee participates in.
Interest rates on investments were projected to be 1.60%.
for Information
Requests
This financial report is designed to provide a general overview of the City’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed to:
Douglas Lauderbach, CPA
Financial Reporting Manager, AIC
City of Eugene
th
Avenue, Suite 400
100 West 10
Eugene, Oregon 97401
23
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24
BASIC FINANCIAL STATEMENTS
Basic Financial Statements
City of Eugene, Oregon
Exhibit 1
Statement of Net Position
June 30, 2016
(amounts in dollars)
GovernmentalBusiness-type
AssetsActivitiesActivitiesTotal
Current assets
Equity in pooled cash and investments204,402,15421,894,888226,297,042
Receivables (net of allowance)53,319,8646,650,46059,970,324
Internal balances(4,258,049)4,258,0490
Due from other governments5,498,3952,775,6738,274,068
Inventories1,659,866538,8712,198,737
Prepaids and deposits2,100,49259,4662,159,958
Wetlands mitigation credits0130,369130,369
Assets held for resale991,8060991,806
Total current assets263,714,52836,307,776300,022,304
Noncurrent assets
Loans and notes receivable0402,243402,243
Capital assets:
Land and construction in progress87,436,37037,587,105125,023,475
Other capital assets (net of accumulated depreciation)342,824,412213,529,474556,353,886
Total noncurrent assets430,260,782251,518,822681,779,604
Deferred outflows of resources
Related to pensions15,319,7763,607,99518,927,771
Total deferred outflows of resources15,319,7763,607,99518,927,771
Total assets and deferred outflows of resources709,295,086291,434,5931,000,729,679
Liabilities
Current liabilities
Accounts payable3,252,9881,454,5084,707,496
Wages payable6,765,7011,596,3688,362,069
Compensated absences payable9,170,8292,009,71311,180,542
Due to other governments1,453,6321,092,5292,546,161
Notes and contracts payable191,0000191,000
Claims payable12,566,534012,566,534
Deposits2,002,035761,2472,763,282
Interest payable351,68948,234399,923
Unearned revenue3,054,839206,0233,260,862
Bonds payable5,352,451179,0035,531,454
Total current liabilities44,161,6987,347,62551,509,323
Noncurrent liabilities
Compensated absences payable167,24855,985223,233
Notes and contracts payable5,677,00005,677,000
General obligation bond and revolving credit facility50,000050,000
Bonds payable (net of unamortized discount/premium)61,051,7979,958,53771,010,334
Net pension liability61,043,25314,376,43975,419,692
Net OPEB obligation2,055,60502,055,605
Total noncurrent liabilities130,044,90324,390,961154,435,864
Deferred inflows of resources
Related to pensions15,972,0393,761,61219,733,651
Total deferred inflows of resources15,972,0393,761,61219,733,651
Total liabilities and deferred inflows of resources190,178,64035,500,198225,678,838
Net position
Net investment in capital assets410,543,209251,116,579661,659,788
Restricted for:
Capital projects46,145,9527,675,14153,821,093
Debt service1,895,99901,895,999
Community development13,418,343013,418,343
Urban renewal16,307,150016,307,150
Other purposes5,228,62805,228,628
Unrestricted25,577,165(2,857,325)22,719,840
Total net position519,116,446255,934,395775,050,841
The accompanying notes are an integral part of the financial statements.
25
City of Eugene, Oregon
Exhibit 2
Statement of Activities
For the fiscal year ended June 30, 2016
(amounts in dollars)
Net (Expense) Revenue and
Program RevenuesChanges in Net Position
Fees,
IndirectFines, andOperatingCapital
DirectExpensesCharges forGrants andGrants andGovernmentalBusiness-type
ExpensesAllocationServicesContributionsContributionsActivitiesActivitiesTotal
Functions/Programs
Governmental activities:
Central services35,039,865(24,292,967)7,779,910122,42780,303(2,764,258)0(2,764,258)
Fire and emergency medical services39,074,2125,053,0102,609,85325,5500(41,491,819)0(41,491,819)
Library, recreation, and cultural services34,208,7073,311,3987,257,449336,3030(29,926,353)0(29,926,353)
Planning and development20,039,9451,763,2639,688,7382,618,996258(9,495,216)0(9,495,216)
Police68,070,6508,416,9024,767,8871,189,4770(70,530,188)0(70,530,188)
Public works38,204,1162,088,3947,752,21810,292,9431,763,461(20,483,888)0(20,483,888)
Interest on long term debt4,480,4880000(4,480,488)0(4,480,488)
Total governmental activities239,117,983(3,660,000)39,856,05514,585,6961,844,022(179,172,210)0(179,172,210)
Business-type activities:
Ambulance transport9,754,470552,0008,263,092000(2,043,378)(2,043,378)
Municipal airport14,688,010520,00010,124,79906,747,89201,664,6811,664,681
Parking services5,366,061252,0006,663,7650001,045,7041,045,704
Stormwater utility18,313,800951,00016,936,261125,945535,5910(1,667,003)(1,667,003)
Wastewater utility28,816,5691,385,00024,241,89115,982480,8070(5,462,889)(5,462,889)
Total business-type activities76,938,9103,660,00066,229,808141,9277,764,2900(6,462,885)(6,462,885)
Total activities316,056,8930106,085,86314,727,6239,608,312(179,172,210)(6,462,885)(185,635,095)
General revenues:
Property taxes110,728,7010110,728,701
Transient room tax2,463,20602,463,206
Local motor vehicle fuel tax3,050,84503,050,845
Contributions in lieu of taxes12,674,782012,674,782
Franchise fees on telecom provider's revenues27,751,459027,751,459
Grants and contributions not restricted to specific programs4,153,92804,153,928
Unrestricted investment earnings1,120,714151,8511,272,565
Transfers1,802,546(1,802,546)0
Total general revenues and transfers163,746,181(1,650,695)162,095,486
Change in net position(15,426,029)(8,113,580)(23,539,609)
Net position, July 1, 2015534,542,475264,047,975798,590,450
Net position, June 30, 2016519,116,446255,934,395775,050,841
The accompanying notes are an integral part of the financial statements.
26
City of Eugene, OregonExhibit 3
Balance Sheet
Governmental Funds
June 30, 2016Systems
(amounts in dollars)GeneralDevelopmentOtherTotal
CommunityGeneralCapitalCapitalGovernmentalGovernmental
GeneralDevelopmentObligationProjectsProjectsFundsFunds
Assets
Equity in pooled cash and investments45,079,1143,201,896280,92318,155,62823,775,42043,948,646134,441,627
Receivables:
Interest1,662,28232,201258,3530065,7172,018,553
Taxes7,371,89001,115,65300253,8248,741,367
Accounts20,649,23317,243001,866,985957,06023,490,521
Assessments00000347,875347,875
Loans and notes238,93817,555,88809,98502,396,58820,201,399
Allowance for uncollectibles(1,484)(17,243)000(154,376)(173,103)
Due from other governments2,703,976202,14344,191002,157,5955,107,905
Interfund loans receivable0000065,00065,000
Inventories000001,138,7491,138,749
Prepaids and deposits953,774000031,649985,423
Assets held for resale00000991,806991,806
Total assets78,657,72320,992,1281,699,12018,165,61325,642,40552,200,133197,357,122
Liabilities
Accounts payable960,58745,34234,669640,91050,239960,0692,691,816
Wages payable5,246,26430,659006,498677,1675,960,588
Due to other governments900,61375,4880337147205,4771,182,062
Deposits792,99600001,124,2441,917,240
Interfund loans payable065,000000065,000
Unearned revenue2,615,316107,517000263,2512,986,084
Total liabilities10,515,776324,00634,669641,24756,8843,230,20814,802,790
Deferred inflows of resources
Unavailable revenue9,951,85317,502,8781,374,0069,9851,681,5853,046,78233,567,089
Total deferred inflows of resources9,951,85317,502,8781,374,0069,9851,681,5853,046,78233,567,089
Fund balances
Nonspendable953,77400002,242,2043,195,978
Restricted1,168,9703,165,244290,4452,339,64423,903,93630,343,07361,211,312
Committed0000013,337,86613,337,866
Assigned36,263,4020015,174,7370051,438,139
Unassigned19,803,9480000019,803,948
Total fund balances58,190,0943,165,244290,44517,514,38123,903,93645,923,143148,987,243
Total liabilities, deferred inflows
of resources, and fund balances78,657,72320,992,1281,699,12018,165,61325,642,40552,200,133
Reconciliation to the Statement of Net Position:
The Statement of Net Position reports receivables at their net realizable value. However, receivables not available to pay for
current-period expenditures are deferred in governmental funds.32,216,903
Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Position at their net
depreciable value.409,483,686
All liabilities are reported in the Statement of Net Position. However, if they are not due and payable in the current period, they
are not recorded in governmental funds.(70,402,962)
Net pension asset (liability) and deferred inflows and outflows of resources related to pensions are reported in the Statement
of Net Position. These items represent a consumption or acquisition of net position that applies to future periods.(54,998,289)
Internal service funds are proprietary funds and not reported with governmental funds. However, because internal service funds
primarily benefit governmental activities, their assets, liabilities, and net position are reported along with governmental activities
in the Statement of Net position.53,829,865
Net position of governmental activities519,116,446
The accompanying notes are an integral part of the financial statements.
27
Exhibit 4
City of Eugene, Oregon
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the fiscal year ended June 30, 2016
(amounts in dollars)
Systems
GeneralDevelopmentOtherTotal
CommunityGeneralCapitalCapitalGovernmentalGovernmental
DevelopmentObligationProjectsProjectsFundsFunds
General
Revenues
Taxes107,289,570014,507,420006,621,201128,418,191
Licenses and permits24,092,71900009,247,40633,340,125
Intergovernmental4,744,1712,020,080002,50012,018,45218,785,203
Rental income145,7280022,501163,503218,956550,688
Charges for services13,047,1196,088005,798,7685,669,69124,521,666
Fines and forfeits2,426,712000013,7342,440,446
Special assessments00000103,170103,170
Repayment of revolving loans02,053,458000261,8112,315,269
Miscellaneous787,636551,42730,873133,895206,0741,477,9423,187,847
Total revenues152,533,6554,631,05314,538,293156,3966,170,84535,632,363213,662,605
Expenditures
Current - departmental:
Central services15,457,458123,0000039,0003,748,76519,368,223
Fire and emergency medical services28,192,2390000289,94828,482,187
Library, recreation, and cultural services26,891,476004,3080349,16427,244,948
Planning and development5,597,5974,523,8400099,5377,525,27517,746,249
Police50,036,83000002,430,88952,467,719
Public works6,003,420000232,23812,686,53818,922,196
Debt service:
Principal0210,00022,770,000002,155,06625,135,066
Interest0117,642673,28000190,610981,532
Issuance costs0089,43522,37505,680117,490
Capital outlay0143,25908,572,3912,780,93310,318,06821,814,651
Total expenditures132,179,0205,117,74123,532,7158,599,0743,151,70839,700,003212,280,261
Excess (deficiency) of
revenues over expenditures20,354,635(486,688)(8,994,422)(8,442,678)3,019,137(4,067,640)1,382,344
Other financing sources (uses)
Proceeds of debt issuance0004,403,27806,879,70011,282,978
Proceeds of refunding bonds issuance008,929,9180008,929,918
Transfers in2,081,145004,409,32303,146,0009,636,468
Transfers out(5,279,300)0000(5,664,826)(10,944,126)
Total other financing sources (uses)(3,198,155)08,929,9188,812,60104,360,87418,905,238
Net change in fund balances17,156,480(486,688)(64,504)369,9233,019,137293,23420,287,582
Fund balances, July 1, 201541,033,6143,651,932354,94917,144,45820,884,79945,629,909128,699,661
Fund balances, June 30, 201658,190,0943,165,244290,44517,514,38123,903,93645,923,143148,987,243
The accompanying notes are an integral part of the financial statements.
28
Exhibit 5
City of Eugene, Oregon
Reconciliation of the Statement of Revenues, Exenditures, and Chanes
pg
in Fund Balances of Governmental Funds to the Statement of Activities
For the fiscal year ended June 30, 2016
(amounts in dollars)
Net change in fund balances - total governmental funds20,287,582
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds defer revenues that do not provide current financial resources.
However, the Statement of Activities recognizes such revenues at their net realizable value
when earned, regardless of when received.(840,976)
Donations of capital assets are reported as capital contributions in the Statement of
Activities, but do not appear in the governmental funds because they are not financial
resources. In addition, the Statement of Activities reports gains and losses arising from
the disposal of existing capital assets, while governmental funds do not.(306,905)
Governmental funds do not report expenditures for unpaid compensated absences, net pension asset (liability),
interest expense, or arbitrage since they do not require the use of current financial resources.
However, the Statement of Activities reports such expenses when incurred, regardless of
when settlement ultimately occurs.(41,272,268)
Capital outlay is reported as expenditures in governmental funds. However, the
Statement of Activities allocates the cost of capital outlays over their estimated useful
lives as depreciation expense.106,781
Proceeds from the issuance of long-term debt provide current financial resources to governmental
funds and are reported as revenues. In the same way, repayments of long-term debt use
current financial resources and are reported as expenditures in governmental funds. However, neither
the receipt of debt proceeds nor the payment of debt principal affect the Statement of Activities,
but are reported as increases and decreases in noncurrent liabilities in the Statement of Net Position.4,922,170
Transfers of capital assets are often made between proprietary funds and governmental funds when the use
of an asset changes. Transfers of liabilities are sometimes made between proprietary funds and
governmental funds when the fund responsible for repayment changes. Such transfers will provide or use
economic resources in proprietary funds, but may not necessarily provide or use spendable financial
resources in governmental funds.(169,791)
Internal service funds are used by management to charge the costs of certain activities,
such as insurance, facilities, and fleet services to individual funds. The net revenue
(expense) of internal service funds is reported with governmental activities.1,847,378
Change in net position of governmental activities(15,426,029)
The accompanying notes are an integral part of the financial statements.
29
Total
(8,479)(33,837,710)
Funds
Exhibit 6
continued
AmbulanceMunicipalParkingStormwaterWastewaterInternal Service
69,960,52851,918390,490521,1171,115,069072,030,6430455,83451,9130053,542,825564,23420,777,0961,663,0051,663,00594,470,744
Governmental
Activities
(571,383)(751,659)(81,794,771)(17,610,683)(22,383,536)(83,849,706)(206,390,355)
Totals
3,958,93821,894,8887,221,8432,775,67359,4667,635,01432,049,7271,423,23717,202,6402,368,471109,572,4941,815,755163,416,431165,571,5062,255,37969,184,3921,378,41175,591,4371,218,11720,384,4653,607,9953
,607,995
538,871130,369402,243787,99287,383,83214,761,80860,363,84688,221,344251,518,8223,091,745100,909,97317,023,44469,010,30097,141,082287,176,544
(5,086)
Utility
1,805,2141,348,03836,487011,0041,284,7241,284,724
491,423
(8,507)
Utility
5,523,8002,084,59111,908010,8847,753,0457,146,2084,882,367066,190,9531,361,152
130,369391,239959,708893,409893,409
Business-type Activities
Enterprise Funds
(121,669)
Services
1,682,93747,4489502,128,87702,130,2351,005,96701,160,54442,455,04129,236,2890
344,132175,934132,759132,759
Airport
(132,489)
33,55510,695,6581,198,4721,191,715012,00001,567,43512,965,35606,502,960018,206,640
379,107100,936,582339,320738,060560,785560,785
Transport
(303,632)
1,789,43448,0780000000
736,318736,318
Statement of Fund Net Position
Total assets and deferred outflows of resources
Equity in pooled cash and investments
Improvements other than buildings
Total deferred outflows of resources
Allowance for uncollectibles
Deferred outflows of resources
Accumulated depreciation
Due from other governments
Loans and notes receivable
Buildings and equipment
Wetlands mitigation credits
Construction in progress
City of Eugene, OregonTotal noncurrent assets
Prepaids and deposits
(amounts in dollars)
Related to pensions
Total current assets
Noncurrent assets
Proprietary Funds
Storm sewers
Trunk sewers
Capital assets:
Current assets
June 30, 2016
Receivables:
Accounts
Inventories
Assets Land
30
Total
Funds
Exhibit 6, continued
AmbulanceMunicipalParkingStormwaterWastewaterInternal Service
2,055,605
561,172805,113859,370271,57012,566,53484,79549,89168,755190,000180,21515,637,415103,488200,00010,026,0906,626,42019,011,6031,733,8121,733,81236,382,83020,387,096037,700,81858,087,914
Governmental
Activities
(5,059,803)(7,115,374)
Totals
1,454,5081,596,3682,009,7131,092,52900000048,2340000007,347,62555,9850000009,958,5375,119,11914,376,4390000008,731,05424,390,9613,761,6123,761,6128,082,63613,990,54535,500,1987,675,141(3,171,355)95,1
35,34215,634,15860,927,66483,150,537251,676,3464,258,049255,934,395
761,247206,023179,003787,99287,383,83214,761,80859,972,60788,210,340251,116,579
Utility
1,029,853719,44417,507064,9243,920,06803,611,9351,339,4231,339,4230
738,305592,297757,738
Utility
17,44452211,52943,49442,6741,212,0332,374,0843,559,8835,939,1560
199,079388,547508,7445,189931,447931,447955,057
Business-type Activities
Enterprise Funds
Services
70,18658,56665,4552,16416,0122,04157,62019,1951,389,2860
7,604279,648423,038528,993971,226138,412138,412872,350
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
Airport
43,06825,2698,13430,2711,239,78931,6011,684,0712,234,5083,950,1805,774,6317,675,14176,369
389,665244,325394,148104,909584,662584,662
Transport
(3,959,347)
57,273009,023033,530696,0870Bonds payable (net of unamortized discount/premium)1,865,4092,933,9364,799,3456,263,1000
312,633283,628767,668767,668
The accompanying notes are an integral part of the financial statements.
Total liabilities and deferred inflows of resources
Net position of business-type activities
Certificates of participation payableCertificates of participation payable
Total deferred inflows of resources
Compensated absences payableCompensated absences payable
Net investment in capital assets
Deferred inflows of resources
Restricted for capital projects
Due to other governments
Total noncurrent liabilities
Total current liabilities
Net OPEB obligation
Noncurrent liabilities
Related to pensions
Net pension liability
Unearned revenue
Accounts payable
Total net position
Current liabilities
Interest payable
Wages payable
Claims payable
Bonds payable
Unrestricted
Net position
Liabilities
Deposits
31
(this page intentionally left blank)
32
Exhibit 7
City of Eugene, Oregon
Statement of Revenues, Exenses, and Chanes in Fund Net Position
pg
Proprietary Funds
For the fiscal year ended June 30, 2016
(amounts in dollars)
Business-type Activities
Governmental
Enterprise Funds
Activities
Total
AmbulanceMunicipalParkingStormwaterWastewaterInternal Service
TransportAirportServicesUtilityUtilityTotalsFunds
Operating revenues
Licenses and permits000116,4200116,4200
Rental income01,061,267539,60533,32123,1391,657,332637,998
Charges for services8,094,3018,981,7614,645,82216,731,08024,155,16062,608,12465,534,581
Fines and forfeits01,5491,473,1794805,7251,480,9330
Miscellaneous168,79180,2225,15954,96057,867366,999245,859
Total operating revenues8,263,09210,124,7996,663,76516,936,26124,241,89166,229,80866,418,438
Operating expenses
Personnel services4,618,4264,574,4741,242,9537,298,86010,782,62028,517,33314,405,132
Contractual services305,183968,8161,006,8872,592,6992,195,1017,068,6862,954,001
Materials and supplies701,6181,049,764174,680516,1333,325,2235,767,4184,123,517
Maintenance914,729395,913993,5781,768,2251,825,6205,898,0651,998,842
Utilities70,995526,600443,529100,194984,9242,126,2422,954,381
Rent03,62446,08050,95255,349156,005409,342
Taxes0042,0320042,032394
Insurance16,669133,79596,63760,442140,863448,4062,938,045
Claims00000026,147,507
Central business functions552,000520,000252,000951,0001,385,0003,660,0001,747,000
Depreciation53,1594,764,100800,7461,933,0364,033,45711,584,4983,720,105
Pension expense2,916,4812,049,170458,3923,698,6435,120,86314,243,5496,622,573
Total operating expenses10,149,26014,986,2565,557,51418,970,18429,849,02079,512,23468,020,839
Operating income (loss)(1,886,168)(4,861,457)1,106,251(2,033,923)(5,607,129)(13,282,426)(1,602,401)
Nonoperating revenues (expenses)
Interest revenue3,12278,7499,06334,87326,044151,851471,178
Interest expense(138,647)(124,839)(31,295)(177,951)(297,496)(770,228)(770,736)
Gain (loss) on sale of capital assets0(118,985)000(118,985)124,416
Intergovernmental000125,94515,982141,927147,463
Total nonoperating revenues (expenses)(135,525)(165,075)(22,232)(17,133)(255,470)(595,435)(27,679)
Income (loss) before capital
contributions and transfers(2,021,693)(5,026,532)1,084,019(2,051,056)(5,862,599)(13,877,861)(1,630,080)
Capital contributions06,747,8920607,058480,8077,835,75798,324
Transfers in000044,20444,2043,402,847
Transfers out(380,390)(17,072)(1,250,755)(135,000)(135,000)(1,918,217)(221,176)
Change in net position(2,402,083)1,704,288(166,736)(1,578,998)(5,472,588)(7,916,117)1,649,915
Total net position, July 1, 2015(769,272)93,431,05415,800,89462,506,66288,623,12556,437,999
Total net position, June 30, 2016(3,171,355)95,135,34215,634,15860,927,66483,150,53758,087,914
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.(197,463)
Change in net position of business-type activities(8,113,580)
The accompanying notes are an integral part of the financial statements.
33
Total
Transfers out(380,390)0(1,250,755)(135,000)(135,000)(1,901,145)(164,636)Principal payments on pension bonds(86,077)(83,202)(20,739)(52,627)(192,258)(434,903)(399,307)Interest payments
on pension bonds(115,755)(97,902)(24,600)(206,916)(227,913)(673,086)(576,621)(180,000)(31,700)Acquisition and construction of capital assets0(11,693,781)0(1,842,867)(2,410,460)(15,947,108)(2,079,230
)Net cash provided by (used for) capital and related financing activities0(4,936,135)0(1,833,447)(2,410,460)(9,180,042)(2,062,105)
(1,021,476)(2,924,698)(1,747,976)(3,254,084)(6,069,076)(15,017,310)(38,886,011)(4,545,193)(4,057,008)(1,018,977)(6,439,295)(9,473,415)(25,533,888)(13,655,067)(1,587,367)(1,465,245)(1,421,340)(3,645,2
86)(4,228,247)(12,347,485)(6,029,517)(552,000)(520,000)(252,000)(951,000)(1,385,000)(3,660,000)(1,747,000)
Funds
Exhibit 8
continued
AmbulanceMunicipalParkingStormwaterWastewaterInternal Service
3,343,826Subsidy from grant000125,94515,982141,927147,463Net cash provided by (used for) noncapital financing activities(582,222)(181,104)(1,296,094)(268,598)(539,189)(2,867,207)2,350,725Contribution
s from other funds and governments06,757,64609,42006,767,0660
49,574,958006,753,881228,825471,178471,1787,513,679760,5284,758,0393,852,44924,547,65462,446,849
8,046,7169,796,4366,649,73317,122,59833,217,46474,832,94717,496,51833,55510,695,6581,682,9375,523,8003,958,93821,894,88869,960,528
Governmental
Activities
(23,367,407)(23,367,407)106,489(2,652,766)
Totals
14,335,77514,335,775
000000829,4852,209,4402,832,9333,030,0949,242,632000000000000000000000000151,851151,851
Utility
26,04426,044
Utility
34,87334,873
00000000765,761
Business-type Activities
Enterprise Funds
Services
9,0639,063(238,420)(4,209,005)922,409
Airport
78,74978,749271,97514,904,663
Transport
340,6803,1223,122
Cash paid to MWMC for sewer user and septic hauler fees collected
Cash received from MWMC for operating reimbursements
Cash flows from capital and related financing activities
Principal payments on notes, bonds, and certificates
Interest payments on notes, bonds, and certificates
Net cash provided by (used for) operating activities
Net cash provided by (used for) investing activities
Cash received from interfund services provided
Cash flows from noncapital financing activities
Cash paid to suppliers for goods and services
Statement of Cash Flows
Cash paid for central business functions
For the fiscal year ended June 30, 2016
Cash paid for interfund services used
Cash paid to employees for services
Proceeds from sale of capital assets
Cash flows from operating activities
Cash flows from investing activities
Net increase (decrease) in cash
Cash received from customers
City of Eugene, Oregon
Cash, June 30, 2016
(amounts in dollars)
Cash, July 1, 2015
Proprietary Funds
Interest revenue
Transfers in
34
Total
(58,856)(1,494,978)(1,108,282)(274,377)(2,053,078)(2,871,997)(7,802,712)(3,632,195)(94,118)(994,519)
(1,886,168)(4,861,457)1,106,251(2,033,923)(5,607,129)(13,282,426)(1,602,401)(2,128)(737,783)(578,978)
Funds
Exhibit 8, continuedInternal Service
10,69012,867
3,720,105449,2830221,47202,830,4376,626,420126,13959,062393,9464,4386,753,881
Governmental
Activities
During the year, $61,096 and $53,420 of capital assets purchased by governmental funds and proprietary funds, respectively, were transferred to the Fleet Services Fund. In addition,
$44,204 of assets
(15,679)(370,652)(395,287)0(453,771)
(48,056)(99,059)0(130,369)(34,380)(49,369)(290,483)(433,944)(1,271,801)(56,931)
Totals
800,7461,933,0364,033,45711,584,498528,9933,559,8835,119,11914,376,43977,64900000000000024,812829,4852,209,4402,832,9333,030,0949,242,632
150,000370,8743,526147,1151,742,7162,282,1276,024,725204,901
(874)(26,530)
ParkingStormwaterWastewater
Utility
0
42,5120275,59611,950(41,782)(105,337)495,32258,19922,938
During the year, the Stormwater Utility Fund capitalized $526,171 in assets contributed from customers and $71,467 in assets contributed from governmental funds.
(83,254)
(61,908)0(130,369)(3,999)
Utility
547(77,104)180,952041,6860
150,0002,143
Business-type Activities
Enterprise Funds
During the year, $37,228 of assets purchased by governmental funds were transferred to the Information Systems and Services Fund.
(12,658)
(7,850)
Services
673349
70,56901,4337,8533,7864,812
AmbulanceMunicipal
Airport
27,755(432,889)
344,134(443,363)(12,000)(279,224)(218,781)
Depreciation 53,1594,764,100014,4190035,64965,75420,00034273,988
6,593690,9042,933,9362,234,508
During the year, the Wastewater Utility Fund capitalized $480,807 in assets contributed from customers.
Transport
(15,163)(10,830)(9,971)(444,854)
(100,493)
61,5140
00001,161,863340,680
purchased by the fund were transferred to the Wastewater Utility Fund.
The accompanying notes are an integral part of the financial statements.
(Increase) Decrease in deferred outflows related to pensions
Increase (Decrease) in deferred inflows related to pensions
Increase (Decrease) in compensated absences payable
net cash provided by (used for) operating activities
Adjustments to reconcile operating income (loss) to
(Increase) Decrease in due from other governments
Increase (Decrease) in allowance for uncollectibles
Net cash provided by (used for) operating activities
(Increase) Decrease in loans and notes receivable
(Increase) Decrease in wetlands mitigation credits
Increase (Decrease) in due to other governments
cash provided by (used for) operating activities
Reconciliation of operating income (loss) to net
Noncash capital and related financing activities
(Increase) Decrease in prepaids and deposits
(Increase) Decrease in accounts receivable
Increase (Decrease) in net OPEB obligation
Increase (Decrease) in net pension liability
(Increase) Decrease in net pension assetIncrease (Decrease) in unearned revenue
Increase (Decrease) in accounts payable
Increase (Decrease) in wages payable
Increase (Decrease) in claims payable
(Increase) Decrease in inventories
Increase (Decrease) in deposits
Operating income (loss)
35
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
Notes Index
(1) Summary of Significant Accounting Policies Page(s)
(A) The Financial Reporting Entity 37
(B) Organization and Operation 37
(C) Government-wide and Fund Financial Statements 37 - 38
(D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation 38 - 41
(E) Risk Management 41
(F) Equity in Pooled Cash and Investments 41 - 42
(G) Receivables 42
(H) Interfund Receivables and Payables 42
(I) Inventories and Prepaid Items 42
(J) Capital Assets 42 - 43
(K) Capitalized Interest 43
(L) Compensated Absences 44
(M) Noncurrent Obligations 44
(N) Deferred Inflows/Outflows of Resources 44
(O) Pensions 44
(P) Fund Balance 44 - 46
(Q) Indirect Expenses Allocation 46
(2) Reconciliation of Government-wide and Governmental Fund Financial Statements
(A) Explanation of Differences Between the Government-wide
Statement of Net Position and the Governmental Fund Balance Sheet 47 - 48
(B) Explanation of Differences Between the Government-wide
Statement of Activities and the Fund Statement of Revenues, Expenditures
and Changes in Fund Balances 48 - 49
(3) Stewardship, Compliance, and Accountability
(A) Budgetary Information 49 - 50
(B) Deficit Net Position 50
(4) Detailed Notes on All Funds
(A) Equity in Pooled Cash and Investments 50 - 52
(B) Receivables 53
(C) Interfund Transfers 54
(D) Due From Other Governments 55
(E) Capital Assets 56 - 58
(F) Unavailable/Unearned Revenue 59
(G) Operating Leases 59 - 60
(H) Noncurrent Liabilities 60 - 67
(5) Other Information
(A) Risk Management 68
(B) Joint Ventures 68
(C) Retirement Plan – Oregon PERS (OPERS) 69 - 75
(D) Retirement Plan – OPSRP IAP 76
(E) Other Post-employment Benefits (OPEB) 76 - 79
(F) Contingencies 79
(G) Outstanding Encumbrances 79
(H) Accounting Standards Issued but not yet Adopted 80
36
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
June 30, 2016
(1) Summary of Significant Accounting Policies
The financial statements of the City of Eugene, Oregon (City) have been prepared in conformity with generally
accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards
Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting
standards.
Fair Value Measurement and Application
The City has implemented GASB Statement No. 72 , which establishes a
framework for measuring fair value and a reporting hierarchy to maximize the use of observable inputs and minimize
the use of unobservable inputs when measuring fair value.
The more significant of the City's accounting policies are described below:
(A) The Financial Reporting Entity
As defined by GAAP, the financial reporting entity consists of the primary government, as well as its component units,
which are legally separate organizations for which the elected officials of the primary government are financially
accountable. Financial accountability is defined as appointment of a voting majority of the component unit's board,
and either a) the ability to impose its will on the component unit, or b) the possibility that the component unit will
provide a financial benefit to or impose a financial burden on the primary government.
The accompanying financial statements present the City of Eugene, Oregon (the primary government) and its
component unit. The City of Eugene is a municipal corporation governed by a council comprised of eight members,
each elected by and representing the citizens of a different ward of the City, and a Mayor, who is elected at large.
The component unit discussed in the next paragraph is included in the City's reporting entity because of the
significance of its operational and financial relationship with the City.
Blended Component Unit.
The Urban Renewal Agency of the City of Eugene (Agency) is a legally separate public
body, corporate and politic, created by ordinance of the City, and governed by the City Council, acting in its capacity
as the Urban Renewal Agency Board. Because the Agency's governing body is identical to the City's, and because
City management is responsible for the Agency’s operations, the funds of the Agency are blended with those of the
City by including them in the appropriate statements and schedules of this Comprehensive Annual Financial Report,
which can be viewed on the City’s website at www.eugene-or.gov. Separate financial statements for the Agency can
be obtained from the Finance Division of the City of Eugene or viewed on the City’s website.
(B) Organization and Operation
The City operates under the Eugene Charter of 1976, a general grant of powers charter. The City Council, composed
of the Mayor and eight council members, forms the legislative branch of the City government, while the City Manager
acts as the administrative head.
The accounts of the City are organized on the basis of funds. Fund accounting is designed to demonstrate legal
compliance and aid financial management by segregating government functions and activities. The operations of
each fund are accounted for by providing a separate set of self-balancing accounts which comprise its assets,
deferred outflows of resources, liabilities, deferred inflows of resources, fund balances (net position), revenues, and
expenditures (expenses).
The government-wide financial statements (Exhibits 1 and 2) report information on all activities of the primary
government and its component unit. As a general rule, the effect of interfund activity has been eliminated from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees, fines, and charges for
services.
(C) Government-wide and Fund Financial Statements
The Statement of Activities (Exhibit 2) demonstrates the degree to which the direct and allocated indirect expenses of
a given function or business-type activity are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or program. Indirect expenses are those costs, usually administrative in nature,
that support all City functions and enable direct services to be provided. Program revenues include 1) fees, fines, and
charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function or program, and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or program. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
continued
37
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(C) Government-wide and Fund Financial Statements, continued
Fund financial statements (Exhibits 3 through 8) are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
(D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Measurement focus refers to what is being measured by a fund. Basis of accounting refers to when revenues and
expenditures or expenses are recognized in the accounts and reported in the financial statements.
Government-wide and Proprietary Fund Financial Statements
The government-wide and proprietary fund financial statements are accounted for using an economic resources
measurement focus, whereby all assets, deferred outflows of resources, liabilities, and deferred inflows of resources
are included in the Statement of Net Position and the Statement of Fund Net Position. The increases and decreases
in net position are presented in the government-wide Statement of Activities and in the proprietary fund Statement of
Revenues, Expenses, and Changes in Fund Net Position. These funds use the accrual basis of accounting whereby
revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing
of related cash flows.
Interfund activity consists of transfers, services provided and/or used, reimbursements, advances, and loans. As a
general rule the effect of interfund activity has been eliminated from the governmental-wide financial statements.
Exceptions to this general rule include interfund services provided and/or used. Interfund services provided and/or
used are accounted for as revenues and expenses since the elimination of such revenues and expenses would distort
the direct costs and program revenues reported for the various functions.
Amounts reported as program revenues in the Statement of Activities include 1) fees, fines, and charges for services,
2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Grants
and contributions not restricted to specific programs are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
Operating revenues and operating expenses are intermediate components within the proprietary fund Statement of
Revenues, Expenses, and Changes in Fund Net Position, and include only those transactions that constitute their
principal, ongoing activities exclusive of investing or financing transactions. Significant operating revenues include
charges for services, rental income, and intergovernmental revenue. Significant operating expenses include
personnel, materials and supplies, outside services, depreciation, and pension expense. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
Governmental Fund Financial Statements
The governmental fund financial statements are accounted for using a current financial resources measurement
focus. The Balance Sheet reports current assets, current liabilities, and deferred inflows of resources; and the
Statement of Revenues, Expenditures, and Changes in Fund Balance presents increases and decreases in net fund
balance. These funds use the modified accrual basis of accounting whereby revenues are recorded only when
susceptible to accrual (both measurable and available). "Measurable" means that the amount of the transaction can
be determined. "Available" is defined as being collectible within the current period or soon enough thereafter (60
days) to be used to liquidate liabilities of the current period. Expenditures, other than interest on noncurrent
obligations, are recorded when the fund liability is incurred.
Real and personal property taxes are levied as of July 1 for each fiscal year on values assessed as of January 1.
Property taxes are an enforceable lien on both real and personal property as of July 1 and are due and payable in
three installments on November 15, February 15, and May 15. All property taxes are billed and collected by Lane
County and remitted to the City. In the governmental fund financial statements, property taxes are reflected as
revenues in the fiscal period for which they were levied, provided they are due, or past due and receivable within the
current period, and collected within the current period or expected to be collected soon enough thereafter to be used
to pay liabilities of the current period (60 days). Otherwise, they are reported as deferred inflows of resources.
Property taxes which are held at year-end by the collecting agency, Lane County, and are remitted to the City within
the 60-day period are reported as "Due from other governments."
continued
38
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation, continued
Governmental Fund Financial Statements, continued
Intergovernmental revenues are recognized as revenues when all eligibility requirements are met. There are,
however, essentially two types of intergovernmental revenues. In one, monies must be expended on the specific
purpose or project before any amounts will be paid to the City; therefore, all eligibility requirements are determined to
be met when the underlying expenditures are recorded. In the other, monies are virtually unrestricted as to the
purpose of the expenditure and are usually revocable only for failure to comply with prescribed requirements;
therefore, all eligibility requirements are determined to be met at the time of receipt or earlier if the susceptible to
accrual criteria are met.
Licenses and permits, charges for services, fines and forfeits, and miscellaneous revenues (except investment
earnings) are recorded as revenues when received in cash because they are generally not measurable until actually
received. Investment earnings are recorded as earned since they are measurable and available. Rental income is
typically received in advance and is reported as unearned when appropriate.
Special assessments receivable and repayment of revolving loans expected to be collected within 60 days after year-
end are considered measurable and available and are recognized as revenue.Assessment installments that are
long-term are recorded as deferred inflows of resources.
Governmental Funds
Governmental funds finance most governmental functions of the City. The acquisition, use, and balances of the City's
expendable financial resources and the related liabilities, excluding those accounted for in proprietary funds, are
accounted for through governmental funds. The measurement focus is upon determination of changes in current
financial resources, rather than upon net position determination. The following are the City's major governmental
funds:
General Fund
The General Fund is the general operating fund of the City. It is used to account for all financial resources
except those required to be accounted for in another fund. Principal sources of revenue are property taxes,
charges for services, licenses and permits, and intergovernmental revenues. Primary expenditures of the
General Fund are made for fire and emergency medical services, library, recreation, and cultural services,
planning and development, police, public works, and general administration.
Community Development Fund
The Community Development Fund is used to account for proceeds of specific revenue sources that are
restricted, committed, or assigned, including grant revenues received from the federal government under
provisions of Title I of the Community Development Act of 1974. Major expenditures include development loans
to individuals and businesses, as well as capital improvements benefiting low-income persons.
General Obligation Debt Service Fund
The General Obligation Debt Service Fund is used to account for the accumulation of resources for, and the
payment of, voter-approved general obligation indebtedness of the City, excluding debt accounted for as
proprietary fund or special assessment debt. The debt service is financed through property taxes and interest
income.
General Capital Projects Fund
The General Capital Projects Fund is used to account for the financial resources that are restricted, committed,
or assigned for capital outlay including construction of capital facilities not financed by proprietary or other capital
projects funds. General Fund transfers, federal and state grants, and bond proceeds provide the financing for the
expenditures of this fund.
continued
39
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation, continued
Governmental Funds, continued
Systems Development Capital Projects Fund
The Systems Development Capital Projects Fund is used to account for resources that are restricted, committed,
or assigned for construction of the non-assessable portion of capacity-enhancing capital projects. Financing is
provided by a systems development charge levied against developing properties. Expenditures are restricted by
state law to capacity-enhancing projects for the following systems: transportation, sanitary sewers, storm sewers,
and parks facilities.
Proprietary Funds
Proprietary funds are used to account for the City's ongoing operations and activities which are similar to those found
in the private sector. The measurement focus is economic resources and upon the determination of net position.
The following are the City's major proprietary funds:
Ambulance Transport Fund
The Ambulance Transport Fund accounts for the operation of emergency medical services provided to the public.
Revenues are provided by user charges.
Municipal Airport Fund
The Municipal Airport Fund accounts for the operations of the municipal airport. Principal sources of revenues
are rental of terminal space to airlines and other service providers, landing fees, and parking fees. The fund
receives Airport Improvement Program monies from the Federal Aviation Administration for capital
improvements. The fund also imposes passenger facility charges on passengers utilizing the airport, the
proceeds of which are restricted for use in financing eligible projects as determined by regulation.
Parking Services Fund
The Parking Services Fund accounts for the operations of City-owned parking facilities. Revenue sources
include parking fees and fines, meter receipts, and rentals. The revenue is used to operate and maintain the
parking facilities and to supplement the General Fund through interfund transfers.
Stormwater Utility Fund
The Stormwater Utility Fund accounts for the operation and maintenance of the stormwater drainage system and
the wetland resource protection and enhancement program. Primary revenues are stormwater user fees and the
sale of wetland mitigation credits.
Wastewater Utility Fund
The Wastewater Utility Fund accounts for the operation, construction, and maintenance of the wastewater
collection and treatment system. Primary revenues are wastewater user fees.
Additionally, the City reports the following fund type:
Internal Service Funds
Internal service funds account for those activities and services furnished internally to other organizational units
within the City on a cost reimbursement basis. Charges are made to the various departments to support these
activities. The City's internal service funds include facilities services, fleet services, information systems and
services, professional services, and risk and benefits. The aggregate of all internal service funds is reflected in
the fund financial statements.
continued
40
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation, continued
Other Governmental Funds
Other governmental funds include all nonmajor special revenue, debt service, and capital projects funds of the City.
The following lists all other governmental funds by governmental fund type:
Special Revenue Funds:
Construction and Rental Housing
Library, Parks, and Recreation
Public Safety Communications
Road
Solid Waste and Recycling
Special Assessment Management
Telecom Registration and Licensing
Urban Renewal Agency General
Urban Renewal Agency Riverfront
Urban Renewal Agency Riverfront Program Revenue
Debt Service Funds:
Special Assessment Bond
Urban Renewal Agency
Capital Projects Funds:
Special Assessment
Transportation
Urban Renewal Agency
Urban Renewal Agency Riverfront
(E) Risk Management
The City retains a portion of the risk of loss for workers' compensation, general liability, and medical, dental, and
vision employee benefits. The amount estimated to be payable is based on an actuarial report of the estimated
ultimate loss, including incurred but not reported claims as of the Statement of Fund Net Position date. Claims
payable include all incremental costs directly incurred as a result of a claim, and consider estimated recoveries on
both settled and unsettled claims. Claims expense is reduced by amounts recovered or expected to be recovered.
Claims liability/expense are accounted for in the City's basic financial statements in an internal service fund.
(F) Equity in Pooled Cash and Investments
Policies adopted by the Investment Advisory Board and the Eugene City Council authorize the City to invest in
obligations of the U.S. Treasury and its agencies, time certificates of deposit, governmental money market bank
deposit accounts, bankers’ acceptances, municipal bonds, corporate bonds, commercial paper, repurchase
agreements, reverse repurchase agreements, and the Oregon Local Government Investment Pool.
It is the City’s policy to report at amortized cost all short-term, highly-liquid money market investments (including
corporate bonds, commercial paper, bankers’ acceptances, municipal bonds, and U.S. Treasury and agency
obligations) and participating interest-earning investment contracts with a remaining maturity at time of purchase of
one year or less. Such investments are stated at cost, increased by accretion of discounts and reduced by
amortization of premiums, both computed by the straight-line method. Callable investments purchased at a discount
are amortized to the maturity date, and callable investments purchased at a premium are amortized to the first call
date. Investments with a remaining maturity at time of purchase of more than one year are valued at fair value.
continued
41
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(F) Equity in Pooled Cash and Investments, continued
The City maintains a common cash and investments pool for all City funds. Interest earned on the pooled cash and
investments is allocated quarterly based on each fund’s average cash and investments balance as a proportion of the
City’s total pooled cash and investments. For purposes of the Statement of Cash Flows, the City considers “cash” to
include the pooled cash and investments, since the pool has the general characteristics of a demand deposit account,
in that any participating fund may deposit additional cash at any time and also may withdraw cash at any time without
prior notice or penalty.
(G) Receivables
Unbilled City services that are significant and meet the measurable and available criteria for revenue recognition are
accrued as revenue in the governmental fund financial statements at year-end. Significant unbilled service accounts
receivable relating to the government-wide and proprietary fund financial statements are accrued as revenue when
earned.
(H) Interfund Receivables and Payables
In the course of operations, numerous transactions occur between individual funds for goods provided or services
rendered. These receivables and payables are classified as "Due from other funds" or "Due to other funds" in the
fund financial statements.
During the year, borrowings that occur between funds are classified as interfund loans or advances. In the fund
financial statements, the short-term portion of such borrowings are classified as “Interfund loans receivable” or
“Interfund loans payable”. The noncurrent portion is classified as “Advances to other funds” or “Advances from other
funds.” The governmental fund financial statements report this as nonspendable fund balance to indicate funds are
not available for appropriation and are not expendable financial resources.
In the government-wide financial statements, all interfund receivables and payables are combined and any residual
balances between the governmental and business-type activities are reported as “Internal balances.”
(I) Inventories and Prepaid Items
Inventories of materials and supplies are valued at cost or average cost using the first-in/first-out method. Inventories
are capitalized and charged to operations as consumed in both the government-wide and fund financial statements.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items
in both the government-wide and fund financial statements.
(J) Capital Assets
Capital assets are defined by the government as tangible or intangible assets that are used in operations and that
have initial useful lives extending beyond a single reporting period. The City’s capitalization threshold for tangible
assets is $5,000. Tangible assets include land, rights-of-way (included with land), buildings, improvements,
equipment, and infrastructure. The capitalization threshold for intangible assets is set at 0.5% of total capital assets
for both governmental and business-type activities. Intangible assets include copyrights, trademarks, and computer
software.
continued
42
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(J) Capital Assets, continued
Infrastructure capital assets are those that are stationary in nature and can be preserved for a significantly greater
number of years than most other capital assets. The City has a transportation infrastructure system reported in
governmental activities consisting of roads, bridges, sidewalks, and traffic and lighting systems. Infrastructure
reported in business-type activities includes a regional airfield, parking lots, and stormwater and wastewater collection
systems. Except for governmental activities infrastructure placed in service prior to July 1, 1980, all capital assets
have been capitalized in the government-wide and proprietary fund financial statements. In accordance with the
current financial resources measurement focus, capital assets are not capitalized in the governmental fund financial
statements. All purchased capital assets are valued at cost where historical records are available and at estimated
historical cost where no historical records exist. Historical cost is measured by the cash or cash equivalent price of
obtaining an asset, including ancillary charges necessary to place the asset into its intended location and condition for
use. Donated capital assets are reported at their estimated fair value at the time of acquisition plus ancillary charges,
if any. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are
capitalized. Amounts expended for maintenance and repairs are charged to expenditures/expenses in the
appropriate funds as incurred and are not capitalized. Capital improvements financed by special assessments which
provide assets to the City’s Stormwater Utility Fund and Wastewater Utility Fund are capitalized in the proprietary fund
Statement of Fund Net Position.
Capital assets are depreciated unless they are inexhaustible in nature or have an indefinite useful life (e.g., land and
rights-of-way). Depreciation is an accounting process which allocates the cost of capital assets, in a systematic and
rational manner, to those periods expected to benefit from the use of capital assets. Depreciation is not intended to
represent an estimate in the decline of fair market value, nor are capital assets, net of accumulated depreciation,
intended to represent an estimate of the current condition of the assets, or the maintenance requirements needed to
maintain the assets at their current level of condition.
Depreciation is computed over the estimated useful lives of the capital assets. All estimates of useful lives are based
on actual experience by City departments with identical or similar capital assets. Infrastructure assets are
depreciated using a composite depreciation method. All other categories of assets are depreciated on the straight-
line basis of accounting. The estimated useful lives of the various categories of assets are as follows:
Estimated
Category useful life
Buildings 40-50 years
Improvements other than buildings 20 years
Infrastructure25-40 years
Equipment 3-15 years
Upon disposal of capital assets, cost and accumulated depreciation are removed from the accounts and, if
appropriate, a gain or loss on the disposal is recognized.
Capital assets of proprietary funds are reported net of accumulated depreciation in the government-wide Statement of
Net Position and the proprietary funds Statement of Fund Net Position. Capital assets not specifically related to
activities reported in proprietary funds are reported net of accumulated depreciation in the governmental activities
column in the government-wide Statement of Net Position.Depreciation expense on proprietary fund capital assets is
reported in the government-wide Statement of Activities and the proprietary fund Statement of Revenues, Expenses,
and Changes in Fund Net Position. Depreciation expense on general capital assets is reported in the government-
wide Statement of Activities as a direct expense.
(K) Capitalized Interest
Interest is capitalized on constructed assets in proprietary funds. For the year ended June 30, 2016, no interest was
capitalized on proprietary fund capital assets.
continued
43
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(L) Compensated Absences
Liabilities for accumulated or vested vacation leave and compensation time benefits (compensated absences) are
recorded in the government-wide financial statements and proprietary fund financial statements.The governmental
fund financial statements do not report liabilities for compensated absences unless they are due for payment. Sick
leave does not vest and is recorded in all funds as taken.
(M) Noncurrent Obligations
Noncurrent obligations are reported in the government-wide and proprietary fund financial statements as liabilities.
The governmental fund financial statements do not report noncurrent obligations because they do not require the use
of current financial resources. Bond discounts and premiums are deferred and amortized over the term of the bonds
using the bonds-outstanding method in the government-wide and proprietary fund financial statements, but are
recognized during the current period in the governmental fund financial statements. The bonds-outstanding method
does not differ significantly from the effective interest method. Bond issuance costs are expensed in the period
incurred.
The limited tax pension obligations are deep discount bonds that increase in value based on the initial yield to
maturity. This increase in value is reflected as an increase in noncurrent liabilities on the Statement of Net Position
and as interest expense on the Statement of Activities.
(N) Deferred Inflows/Outflows of Resources
In addition to assets, the government-wide Statement of Net Position and the proprietary funds Statement of Net
Position will sometimes report a separate section for deferred outflows of resources. This separate financial
statement element represents a consumption of net position that applies to future period(s) and so will not be
recognized as an outflow of resources (expenditure/expense) until then. The City has one item that qualifies for
reporting in this category. It is the deferred amounts relating to pensions. This amount is deferred and recognized as
an outflow of resources in the period when the City's recognizes pension expense/expenditures.
In addition to liabilities, the government-wide Statement of Net Position, the proprietary funds Statement of Net
Position, and the governmental funds Balance Sheet will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element represents an acquisition of net position that applies to future
period(s) and so will not be recognized as an inflow of resources (revenue) until that time.The City has two items that
qualify for reporting in this category. Unavailable revenue from property taxes and other receivables is reported in the
governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the
period that the amounts become available. The City also reports deferred amounts related to pensions. This amount
is deferred and recognized as an inflow of resources in the period when the City recognizes pension income, and is
reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position, if
applicable.
(O) Pensions
For purposes of measuring the net pension asset (liability), deferred outflows of resources and deferred inflows of
resources related to pensions, information about the fiduciary net position of the Oregon Public Employees
Retirement System (OPERS), and additions to/deductions from OPERS's fiduciary net position have been determined
on the same basis as they are reported by OPERS. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
(P) Fund Balance
In the fund financial statements, the fund balance for governmental funds is reported in classifications that comprise a
hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific
purposes for which amounts in those funds can be spent.
Fund balance is reported as nonspendable when the resources cannot be spent because they are either in a
nonspendable form or legally or contractually required to be maintained intact. Resources in nonspendable form
include inventories, prepaids and deposits, and assets held for resale.
continued
44
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(P) Fund Balance, continued
Fund balance is reported as restricted when the constraints placed on the use of resources are either: (a) externally
imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other
governments; or (b) imposed by law through constitutional provisions or enabling legislation.
Fund balance is reported as committed when the City Council passes an ordinance that places specific constraints on
how the resources may be used. The City Council can modify or rescind the ordinance at any time through passage
of an additional ordinance.
Resources that are constrained by the City’s intent to use them for a specific purpose, but are neither restricted nor
committed, are reported as assigned fund balance. Intent is expressed when the City Council approves which
resources should be “reserved” during the adoption of the annual budget. The policies that address the designation
of “reserves” are included in the City’s financial management goals and policies adopted by the Council. The City’s
Finance Director uses that information to determine whether those resources should be classified as assigned or
unassigned for presentation in the City’s Comprehensive Annual Financial Report.
Unassigned fund balance is the residual classification for the General Fund. This classification represents fund
balance that has not been restricted, commiPtted, or assigned within the General Fund. Unassigned fund balance is
primarily comprised of the difference between budget and actual results for the current fiscal year. This classification
is also used to report any negative fund balance amounts in other governmental funds.Unassigned fund balance is
typically appropriated or placed into a reserve by the City Council on the first supplemental budget of the following
year.
When both restricted and unrestricted (committed, assigned, or unassigned) resources are available for use, it is the
City’s practice to use restricted resources first, then unrestricted resources as needed. When an expenditure is
incurred where an unrestricted fund balance classification could be used, the City’s practice is to use committed
resources first, assigned resources second, and then unassigned amounts as they are needed.
continued
45
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(P) Fund Balance, continued
Fund balances by classification for the year ended June 30, 2016 were as follows:
Debt
(Q) Indirect Expenses Allocation
In the fund financial statements, the City allocates certain indirect costs incurred by the central services function of the
General Fund to other funds in order to recover expenditures made on behalf of those other City funds. This
allocation has been removed from the direct expenses column in the government-wide Statement of Activities and a
separate column titled indirect expenses allocation has been presented. Indirect costs allocated to business-type
activities are equal to the amount actually paid by the function. The remaining indirect costs are allocated to
governmental activities based on personnel service costs. The remaining net expense in the central services function
represents direct program activity of that function including its share of allocated indirect costs.
46
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(2) Reconciliation of Government-wide and Governmental Fund Financial Statements
(A) Explanation of Differences Between the Government-wide Statement of Net Position and the Governmental Fund
Balance Sheet
The Balance Sheet for governmental funds (Exhibit 3) includes a reconciliation between total fund balances and total
net position of governmental activities in the Statement of Net Position (Exhibit 1). The following are selected
elements of that reconciliation.
The Statement of Net Position reports receivables at their net realizable value. However, receivables not available to
pay for current-period expenditures are deferred in governmental funds. The details of this $32,216,903 difference
are as follows:
Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Position at
their net depreciable value. The details of this $409,483,686 difference are as follows:
All liabilities are reported in the Statement of Net Position. However, if they are not due and payable in the current
period, they are not recorded in governmental funds. The details of this $70,402,962 difference are as follows:
continued
47
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(2) Reconciliation of Government-wide and Governmental Fund Financial Statements, continued
(A) Explanation of Differences Between the Government-wide Statement of Net Position and the Governmental Fund
Balance Sheet, continued
Net pension asset (liability) and deferred inflows and outflows of resources related to pensions are reported in the
Statement of Net Position.These items represent a consumption or acquisition of net position that applies to future
periods. The details of the $54,998,289 difference are as follows:
(B) Explanation of Differences Between the Government-wide Statement of Activities and the Statement of Revenues,
Expenditures, and Changes in Fund Balances
The Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
Funds to the Statement of Activities is provided at Exhibit 5. The following are selected elements of that
reconciliation:
Governmental funds defer revenues that do not provide current financial resources.However, the Statement of
Activities recognizes such revenues at their net realizable value when earned, regardless of when received. The
details of this $840,976 difference are as follows:
Donations of capital assets are reported as capital contributions in the Statement of Activities, but do not appear in
the governmental funds because they are not financial resources. In addition, the Statement of Activities reports
gains and losses arising from the disposal of existing capital assets, while governmental funds do not. The details of
this $306,905 difference are as follows:
Governmental funds do not report expenditures for unpaid compensated absences, interest expense, or arbitrage
since they do not require the use of current financial resources. However, the Statement of Activities reports such
expenses when incurred, regardless of when settlement ultimately occurs. The details of this $41,272,268 difference
are as follows:
continued
48
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(2) Reconciliation of Government-wide and Governmental Fund Financial Statements, continued
(B) Explanation of Differences Between the Government-wide Statement of Activities and the Statement of Revenues,
Expenditures, and Changes in Fund Balances, continued
Capital outlay is reported as expenditures in governmental funds. However, the Statement of Activities allocates the
cost of capital outlay over their estimated useful lives as depreciation expense. The details of this $106,781
difference are as follows:
Repayments of long-term debt use current financial resources and are reported as expenditures in governmental
funds. The payment of debt principal affects the Statement of Activities and is reported as a decrease in noncurrent
liabilities in the Statement of Net Position. The details of this $4,922,170 difference are as follows:
Transfers of capital assets are often made between proprietary funds and governmental funds when the use of an
asset changes. Transfers of liabilities are sometimes made between proprietary funds and governmental funds when
the fund responsible for repayment changes. Such transfers will provide or use economic resources in proprietary
funds, but may not necessarily provide or use spendable financial resources in governmental funds.
(3) Stewardship, Compliance, and Accountability
(A) Budgetary Information
The City Manager submits to the Budget Committee a proposed operating and capital budget a sufficient length of
time in advance to allow adoption of the budget prior to July 1. The operating and capital budget includes proposed
expenditures and the means of financing them. Public hearings are conducted to obtain community comments.
Prior to July 1, the City legally adopts its annual budget for all funds through passage of a resolution. The resolution
authorizes fund appropriations as current annual departmental requirements, debt service, capital outlay, interfund
transfers, interfund loans, and special payments.
Expenditures cannot legally exceed appropriations at these control levels. Appropriations which have not been spent
at year-end lapse, although an amending resolution passed in the subsequent year specifically provides for the
reappropriation of prior-year lapsed encumbrances.
continued
49
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(3) Stewardship, Compliance, and Accountability, continued
(A) Budgetary Information, continued
Unexpected additional resources or appropriations may be added to the budget through the use of a supplemental
budget. A supplemental budget requires hearings before the public, publications in newspapers, and approval by the
City Council. Original and supplemental budgets may be modified by the use of appropriation transfers between the
levels of control. Such transfers require approval by passage of a Council resolution authorizing the transfer. All
budget amendments are subject to the limitations put forth in the Oregon Revised Statutes Chapters 294.305 through
294.565. Supplemental appropriations, permitted by Oregon Budget Law, were authorized by the City Council during
the fiscal year. The net effect of amending resolutions passed during the fiscal year was an appropriation increase of
$22,386,192.
(B) Deficit Net Position
The Ambulance Transport and Professional Services Funds have a deficit net position of $3,171,355 and $50,333,
respectively. The deficit net position is the result of the recognition of each fund’s proportionate share of the City’s net
pension liability.
(4) Detailed Notes on All Funds
(A) Equity in Pooled Cash and Investments
The City maintains a common cash and investments pool that is available for use by all funds. Each fund’s portion of
this pool is displayed in the Statement of Net Position, the Statement of Fund Net Position, or the Balance Sheet as
"Equity in pooled cash and investments.” Cash and investments are comprised of the following at June 30, 2016:
Cash on hand$40,704
Cash with fiscal agent186,821
Deposits with banks17,833,423
Investments208,236,094
$226,297,042
Deposits
At June 30, 2016, the City’s deposits with various financial institutions were $17,833,423, which included time
certificates of deposits. The City’s investment policy limits investments in time certificates of deposits to 50% of the
City’s total investment portfolio with a maximum length to maturity of three years.
All City deposits not covered by Federal Deposit Insurance Corporation (FDIC) or National Credit Union
Administration (NCUA) insurance are covered by the Public Funds Collateralization Program (PFCP) of the State of
Oregon. The PFCP is a shared liability structure for participating depositories, better protecting public funds, though
not guaranteeing that all funds are 100% protected. A depository is required to pledge collateral securities with a total
market value equal to at least 10% of their last reported uninsured public fund deposits. The Office of State
Treasurer (OST) has identified the following exceptions to the collateral calculation and any exception requires 100%
collateralization.
A depository may not accept public fund deposits from one depositor in excess of their net worth. If the
depository has a drop in net worth that takes them out of compliance, they are required to post 100%
collateral on any amount the depositor has in excess of the depository’s net worth while working to eliminate
that excess.
A depository may not hold aggregate public funds in excess of a percentage of their net worth based on their
capitalization category (100% for undercapitalized, 150% for adequately capitalized, 200% for well
capitalized) unless approved, for a period of 90 days or less, by OST.
A depository may only hold in excess of 30% of all aggregate public funds reported by all depositories
holding Oregon public funds if the excess is collateralized at 100%.
The OST, at the advice of the Director of Consumer and Business Services, may also, at any time, require
depositories to pledge additional collateral up to 110% of the value of the uninsured public fund deposits.In the event
of a depository failure, the entire pool of collateral pledged by all qualified Oregon public funds depositories is
available to repay deposits of public funds of government entities.
continued
50
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(A) Equity in Pooled Cash and Investments, continued
Deposits, continued
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a depository failure, the government’s deposits may not be returned
to it. At June 30, 2016, the City had deposits of $500,000 insured by the FDIC, $500,000 insured by the NCUA, and
$21,466,263 collateralized under the PFCP.
At June 30, 2016, the City had $186,821 in deposits (cash with fiscal agent) held by escrow companies that were
uninsured and uncollateralized.
Investments
As of June 30, 2016, the City held the following investments:
Interest Rate Risk
As a means of limiting its exposure to losses from rising interest rates, the City’s investment policy limits investment
as follows:
Maximum
length
to maturity
Investment type
Bankers' acceptances6 months
Corporate indebtedness18 months
Local government investment pool1 day
State and local government obligations3 years
U.S. agency securities3 years
U.S. treasury securities3 years
With the exception of pass-through funds, the maximum amount of pooled investments to be placed in the Local
Government Investment Pool is limited by Oregon Statute to $47,012,858, which increases periodically
proportionately to the Portland Consumer Price Index. The limit can be temporarily exceeded for ten business days
and does not apply either to pass-through funds or to funds invested on behalf of another governmental unit.
Credit Risk
The City’s policy, which adheres to State of Oregon law, is to limit its Corporate and Municipal investments as follows:
Issuers within Oregon must be rated “A” (bonds) or A-2 / P-2 (commercial paper) or better by Standard and Poor’s,
Moody’s Investors Service or any other nationally recognized statistical rating organization at time of purchase.
Issuers not in Oregon must be rated AA / Aa (bonds) or A-1 / P-1 (commercial paper) or better at time of purchase.
continued
51
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(A) Equity in Pooled Cash and Investments, continued
Investments, continued
As of June 30, 2016, the City’s investments were rated as follows:
Highest Rating From
Moody's Investors Service or Standard & Poor's Corporation
Investment typeTotalAaa/AAAAa/AAANot rated
Corporate indebtedness$41,271,4242,982,83827,946,18010,342,4060
Local government
investment pool29,070,66500029,070,665
Municipal bonds18,196,7482,538,30814,971,692686,7480
U.S. agency securities89,372,07574,443,3440014,928,731
U.S. treasury securities30,325,18230,325,182000
Total$208,236,094110,289,67242,917,87211,029,15443,999,396
The Oregon State Treasurer maintains the Oregon Short Term Fund (OSTF), of which the Local Government
Investment Pool (LGIP) is a part. Participation by local governments is voluntary. The State of Oregon investment
policies are governed by statute and the Oregon Investment Council. In accordance with Oregon Statutes, funds are
invested as a prudent investor would do, exercising reasonable care, skill and caution. The LGIP was created to offer
a short-term investment alternative to Oregon local governments and it is not registered with the U.S. Securities and
Exchange Commission. The investments are regulated by the OSTF and approved by the Oregon Investment
Council (ORS 294.805 to 294.895). At June 30, 2016, the fair value of the City’s deposits with the LGIP approximates
cost. The OSTF financial statements are available athttp://www.ost.state.or.us/.
The LGIP’s portfolio concentration of credit risk at June 30, 2016 included: Corporate Notes (43.1%), U.S. Treasury
and Agency Securities (29.4%), Asset Backed Securities (13.3%), Municipal Bonds (2.3%), Non-US Government
Debt (4.7%), Commercial Paper (1.7%), Certificates of Deposits (5.1%), and cash (0.4%). The credit risk associated
with the investments was: AAA rating (16.5%), AA rating (18.9%), A rating (35.4%), BBB rating (2.6%), and not rated
(26.6%).
Concentration of Credit Risk
The City’s policy for investing in individual issuers varies depending on the type of investments. U.S. Government
Agency Securities are restricted to no more than 25.0% for any one issuer. No more than 25.0% of the total portfolio
of investments may be invested in a single issuer of bankers’ acceptances or repurchase agreements. Investments in
commercial paper or corporate bonds may not exceed more than 35.0% of the portfolio and investments in any one
issuer may not exceed 5.0% of the investment portfolio. Investments are limited to 5.0% per depository name and
may not exceed more than 25.0% of the investment portfolio. The combined limit for each depository in certificates of
deposits, bankers’ acceptances, and corporate indebtedness is 10.0%.
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Observable inputs are developed based on market
data obtained from sources independent of the reporting entity. Unobservable inputs are developed based on the
best information available about the assumptions market participants would use in pricing the asset. The
classification of securities within the fair value hierarchy is based upon the activity level in the market for the security
type and the inputs used to determine their fair value, as follows:
Level 1 – Unadjusted quoted prices for identical instruments in active markets.
Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments
in markets that are not active; and model-derived valuations in which all significant inputs are
observable.
Level 3 – Valuations derived from valuation techniques in which significant inputs are unobservable.
As of June 30, 2016, the City’s investments, excluding the Local Government Investment Pool which is not in the
leveling hierarchy are classified as Level 2.
continued
52
H Noncurrent Liabilities. Receivables
g and Urban Development (HUD) ch the City is contingently owances for uncollectible accounts at
continued
repay the HUD loan, for whi
Department of Housin
ng the applicable all
in the Notes Payable section of Note 4
ate developer under the U.S.
am totaling $5,868,000. The private developer payments are used to
the aggregate, includi
Notes to Basic Financial Statements
CITY OF EUGENE, OREGON
ligation under these two loans is available
governmental funds in
City had two outstanding loans receivable from a priv
for individual major funds, internal service funds, and other
liable. Further information on the City’s ob
(4) Detailed Notes on All Funds, continued
Section 108 Loan Guarantee progr
June 30, 2016, are as follows:
As of June 30, 2016, the
(B) Receivables
53
tion and Licensing Fund, to the
funds in accordance with ons, $1.4 million transferred from the
continued
expend them.
ams and activities accounted for in other
5 million transferred from the Telecom Registra
the fund that statute or budget requires to
the General Fund to support general operati
ces to other funds to pay for direct expenses.
Notes to Basic Financial Statements
the General Fund to finance various progr
CITY OF EUGENE, OREGON
ute or budget requires to collect them to
es Fund for future replacement of equipment, $1.
rred from the Parking Services Fund to
Information Systems and Services Fund for new corporate software.
Transfers are routinely made for the following purposes:
To move revenues collected from restricted sour
To move unrestricted revenues collected in
To move revenues from the fund that stat
Other transfers include $1.3 million transfe
(4) Detailed Notes on All Funds, continued
General Fund to the Fleet Servic
budgetary authorizations.
(C) Interfund Transfers
54
continued
Notes to Basic Financial Statements
CITY OF EUGENE, OREGON
June 30, 2016, are presented below:
Amounts due from other governments at
(4) Detailed Notes on All Funds, continued
(D) Due From Other Governments
55
continued
Notes to Basic Financial Statements
CITY OF EUGENE, OREGON
Capital asset activity for the year ended June 30, 2016 was as follows:
(4) Detailed Notes on All Funds, continued
(E) Capital Assets
56
continued
Notes to Basic Financial Statements
CITY OF EUGENE, OREGON
(4) Detailed Notes on All Funds, continued
(E) Capital Assets, continued
57
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(E) Capital Assets, continued
Depreciation expense was charged to functions/programs as follows:
continued
58
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(F) Unavailable/Unearned Revenue
Unavailable revenues are reported as a deferred inflow of resources in the governmental funds Balance Sheet.
Unavailable revenues are reported in connection with receivables for revenues that are not considered to be available
to liquidate liabilities of the current period.
Unearned revenues are reported as a liability in the proprietary funds Statement of Net Position and governmental
funds Balance Sheet. Unearned revenues are reported in connection with resources that have been received but not
yet earned. The various components of unavailable/unearned revenue at June 30, 2016 consist of the following:
(G) Operating Leases
The City conducts some of its operations from leased facilities located throughout the City. All such leases for
facilities are classified as operating leases and expire within the next six years. The total rental expense for the year
ended June 30, 2016 for operating leases was $1,183,402. Most of these leases for facilities contain an option
whereby the City can, after the initial lease term, renew its lease for periods of one to ten years.
continued
59
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(G) Operating Leases, continued
The following is a schedule of future minimum rental payments required under operating leases that have initial or
remaining non-cancelable lease terms in excess of one year as of June 30, 2016:
(H) Noncurrent Liabilities
General Obligation (G.O.) Bonds
The City issues general obligation bonds to finance major construction projects in governmental activities. G.O.
bonds in governmental activities are approved by voters, backed by the full faith and credit and unlimited taxing power
of the City, and are serviced by general property tax revenues. The City’s G.O. bonded debt is subject to a debt limit
of 3.0% of real market value per Oregon Revised Statutes 287A.050. For the fiscal year ended June 30, 2016, the
City had 98.0% of its legal debt capacity available.
On June 28, 2016, the City issued $10,125,000 of General Obligation and Refunding Bonds, Series 2016, bearing a
fixed interest rate of 2.0% to 5.0%, and maturing on June 1, 2026. The bonds were sold at a premium of $808,196.
The proceeds of the Bonds were used to refund $2,350,000 of the General Obligation Bond and Revolving Credit
Facility (POS) and advance refund $2,060,000 of the Parks and Open Spaces Bonds, Series 2004 bearing interest
rates ranging from 4.100% to 4.650% and $4,360,000 of the General Obligation Refunding Bonds, Series 2006
bearing interest rates ranging from 4.000% to 4.125% In addition, $2,000,000 of the Bond proceeds will be used for
the purchase of land for parks and open space, and the construction and improvement of athletic fields.
Bond proceeds in the amount of $6,462,114 were deposited in an irrevocable trust with an escrow agent to provide for
all future debt service payments for the outstanding Parks and Open Spaces Bonds, Series 2004, dated December 1,
2016 through June 1, 2023 and General Obligation Refunding Bonds, Series 2006, dated December 1, 2016 through
March 1, 2019. As a result, these portions of the 2004 and 2006 Series bonds are considered to be defeased and the
liability for these bonds has been reduced by the amounts stated above.
The City advance refunded the 2004 and 2006 Series bonds to reduce its total debt service payments over the next 7
years and to obtain an economic gain (difference between the present values of the debt service payments on the old
and new debt) of $417,580.
continued
60
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(H) Noncurrent Liabilities, continued
General Obligation (G.O.) Bonds, continued
Annual debt service requirements to maturity for general obligation bonds are as follows:
General Obligation Bond and Revolving Credit Facility (Streets 2012)
On November 6, 2012, Eugene voters passed Measure 20-197, authorizing the City to issue a maximum of
$43,000,000 of general obligation (G.O.) bonds. The proceeds from the sale of the bonds are to be used for street
preservation. The bonds can be issued to provide interim financing and to refund the bonds that provide interim
financing. As of June 30, 2016, the City had $26,620,300 in authorized but unissued borrowing remaining.
These bonds are issued through a G.O. and revolving credit facility with Bank of America, N.A. which matures on
June 1, 2017 and has an authorized limit of $5,000,000. The City elects from either a LIBOR based taxable or tax
exempt interest rate for each draw. As of June 30, 2016, the City had a $0 balance on the credit facility.
Draws on this credit facility are recorded as a financing source in the Transportation Capital Projects Fund. The debt
will be repaid from general property tax revenues or by the future issuance of long-term general obligation bonds,
which can be issued at the City’s discretion. The General Obligation Bond and Revolving Credit Facility (Streets and
Off-Street Bike and Pedestrian Paths) is backed by the full faith and credit of the City and is included in the City’s
G.O. debt limit.
General Obligation Bond and Revolving Credit Facility (POS)
On November 7, 2006, Eugene voters passed Measure 20-110, authorizing the City to issue a maximum of
$27,490,000 of general obligation (G.O.) bonds. The proceeds from the sale of the bonds are to be used for the
purchase of land for parks and open space, and the construction and improvement of athletic fields. The bonds can
be issued to provide interim financing and to refund the bonds that provide interim financing. As of June 30, 2016, the
City had $3,920,000 in authorized but unissued borrowing remaining.
To issue these bonds, on May 31, 2007, the City entered into a General Obligation Bond and Revolving Credit Facility
with Bank of America, N.A. with a variable interest rate with and a maturity date of June 1, 2017. The facility has an
authorized limit of $6,875,000 outstanding at any given time and is further limited to a maximum of the amount
authorized under the bond measure. As of June 30, 2016, the City had a $50,000 balance on the credit facility, in
addition to $2,185 in accrued interest expense.
continued
61
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(H) Noncurrent Liabilities, continued
General Obligation Bond and Revolving Credit Facility (POS), continued
Draws on this credit facility are recorded as a financing source in the General Capital Projects Fund. The debt will be
repaid from general property tax revenues or by the future issuance of long-term general obligation bonds, which can
be issued at the City’s discretion. The General Obligation Bond and Revolving Credit Facility (Parks, Athletic Fields,
and Open Spaces) is backed by the full faith and credit of the City and is included in the City’s G.O. debt limit.
Certificates of Participation
The City issues certificates of participation (COPs) to finance major construction projects in governmental activities.
The Atrium Obligations are backed by the full faith and credit of the City, and debt payments are to be paid from rental
payments made by property occupants, including City departments.
Annual debt service requirements to maturity for certificates of participation are as follows:
Limited Tax Bonds
The City issues limited tax bonds in governmental and business-type activities. Limited tax bonds in governmental
activities include limited tax improvement bonds and limited tax pension bonds. Limited tax improvement bonds
finance public improvements that benefit private parties. Improvement bonds are secured by the benefited properties
and are to be repaid in installments from property owners. Limited tax pension bonds finance a portion of the
estimated unfunded actuarial liability with the Oregon Public Employees Retirement System. The pension bonds are
to be repaid from existing revenue sources. All limited tax bonds are backed by the full faith and credit of the City,
within the limitations of Article XI of the Oregon Constitution.
continued
62
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(H) Noncurrent Liabilities, continued
Limited Tax Bonds, continued
OriginalEnding
issuanceInterest rates (%)balance
Governmental activities
Limited tax bonds:
Limited Tax Pension Bonds, Series 2002 $69,613,2812.000% to 7.410%48,050,963
Limited Tax Improvement Bonds, Series 2011580,0007.050%216,965
Total limited tax bonds governmental activities$70,193,28148,267,928
Business-type activities
Limited tax bonds:
Limited Tax Pension Bonds, Series 2002 $14,721,1792.000% to 7.410%10,137,540
Total limited tax bonds business-type activities$14,721,17910,137,540
Total limited tax bonds$84,914,46058,405,468
The Limited Tax Pension Bonds, Series 2002 are deep discount bonds and reported net of accretion. However, the
annual debt service requirements to maturity are reported on a cash basis and do not account for accreted amounts.
The following table reconciles the ending balance of limited tax bonded debt and the annual debt service
requirements to maturity schedule:
Total limited tax bonds$58,405,468
Less: Accretion of deep discount(6,292,819)
Total debt service requirements for limited tax bonds$52,112,649
Annual debt service requirements to maturity for limited tax improvement bonds are as follows:
continued
63
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(H) Noncurrent Liabilities, continued
Limited Tax Bonds, continued
Annual debt service requirements to maturity for limited tax pension bonds are as follows:
Tax Increment Bonds
The City’s Urban Renewal Agency issues tax increment bonds to finance major construction projects in governmental
activities. The purpose of the Urban Renewal Agency is to stimulate economic development by financing public
improvements within designated districts. Tax increment bonds are serviced by property tax increment revenues.
When an urban renewal district is first created, the property assessed value within the district boundaries is
established as a “frozen base.” The Urban Renewal Agency receives property taxes related to the incremental
increase in the property assessed value that are in excess of the “frozen base.”
Annual debt service requirements to maturity for tax increment bonds are as follows:
continued
64
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(H) Noncurrent Liabilities, continued
Conduit Debt
On December 27, 2010, the City issued $6,900,000 of Bank Loan Revenue Bonds, dated December 30, 2010,
bearing a variable interest rate, and maturing on December 27, 2035. The bonds were issued to provide access to
tax-exempt interest rates to Woolworth Properties, LLC for the construction of the Woolworth Building, which is
located within the City’s Downtown Urban Renewal District. The City is not obligated in any manner for repayment of
the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of
June 30, 2016, $6,228,302 of the bonds were outstanding.
Notes Payable
The City has entered into contracts with the U.S. Department of Housing and Urban Development (HUD) as a
guarantor for loan guarantees made under HUD’s Section 108 Loan Guarantee Program (Program). The Program is
a source of financing for economic development.
HUD contracts for loan guarantee assistance contain certain security provisions. The primary security is a pledge by
the City of its current and future Community Development Block Grant funds. The City provides additional security for
each Guaranteed Loan in the form of property liens.
In July 2008, the City borrowed $2,706,000 from HUD to finance the purchase of the historic Washburne and Centre
Court buildings in the Urban Renewal Downtown District. On May 28, 2015, the City entered into an agreement with
HUD to refinance this loan. The loan has an interest rate ranging from 0.280% to 3.150%, maturing on August 1,
2027.
On November 16, 2010, the City entered into a contract with HUD to borrow $5,189,000 to support the rehabilitation
of the historic Washburne and Centre Court buildings in the Urban Renewal Downtown District. On May 28, 2015, the
City entered into an agreement with HUD to refinance this loan, pay down the balance, and remove the Washburne
building as collateral. The loan has an interest rate ranging from 0.280% to 3.550%, maturing on August 1, 2030.
LoanEnding
Governmental activitiesamountInterest rates (%)balance
Notes payable:
Housing and Urban Development -
$0.280% to 3.150%
Centre Court Building2,706,000979,000
0.280% to 3.550%
Centre Court Building Rehabilitation5,189,0004,889,000
7,895,0005,868,000
$
Annual debt service requirements to maturity for notes payable are as follows:
Governmental activities
Fiscal year
ending June 30PrincipalInterest
2017$191,000173,339
2018193,000171,649
2019204,000169,395
2020204,000166,120
2021204,000162,183
2022-20261,020,000735,744
2027-20313,852,000541,803
$5,868,0002,120,233
continued
65
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(H) Noncurrent Liabilities, continued
Notes Payable, continued
The HUD notes will be repaid from principal and interest payments received from a loan to Beam Properties Eugene
LLC, who purchased the property from the City. The loan proceeds from the Beam Properties Eugene LLC loan will
be received in the Community Development Special Revenue Fund.
Compensated Absences
At June 30, 2016, the City reported compensated absences of $9,338,077 in governmental activities. The General
Fund, internal service funds, and other governmental funds are typically used to liquidate these liabilities.
Internal Service Fund Debt
Based on an analysis of billings, governmental activities have been determined to be the predominant source of
revenue for all internal service funds. Therefore, noncurrent liabilities of the internal service funds are reported in
governmental activities. As of June 30, 2016, internal service fund debt included the Atrium Obligations of $390,000,
Limited Tax Pension Bonds (net of unamortized discount) of $10,206,305, a net OPEB obligation of $2,055,605, and
$962,858 in compensated absences.
continued
66
Notes to Basic Financial Statements
CITY OF EUGENE, OREGON
he year ended June 30, 2016 was as follows:
(4) Detailed Notes on All Funds, continued
Changes in Noncurrent Liabilities
(H) Noncurrent Liabilities, continued
Noncurrent liability activity for t
67
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information
(A) Risk Management
The City has established an internal service fund to account for and finance its risks of loss. The City has a self-
insured liability program which covers personal injury, public official’s errors and omissions, automobile, and
employer’s liability, with a maximum self-insured retention of $1,000,000 per occurrence for automobile liability,
general liability, and employee benefit and employment practice liability. In addition, the City has a self-insured
workers’ compensation program which covers employees’ work-related illnesses and injuries, including employer’s
liability, with a maximum self-insured retention of $1,000,000 per occurrence. During the previous three fiscal years,
there were no liability claims that exceeded the insurance coverage levels.
All regular full and part-time City employees are eligible for medical, dental, and vision insurance coverage.
Employees may choose between two self-insured plans: the City Health Plan, a Preferred Provider Organization
(PPO) plan or the City Managed Care Plan, a Point of Service (POS) plan. A third self-insured medical plan, the City
Hybrid Plan, is available to non-represented and IATSE-represented employees. The City has established a self-
insurance fund to pay medical, dental, and vision claims of employees and their dependents on the City Health Plan,
up to the self-insurance retention limit of $250,000 per employee.
Coverage for workers’ compensation, general liability, and employees’ health claims in excess of the self-insurance
retention limit is purchased from commercial insurers. The City also purchases all-risk property insurance coverage
from a commercial insurer. The property insurance policy has a basic $25,000 deductible, with earthquake and flood
insurance coverages subject to the following deductibles: flood – $100,000 deductible per occurrence except that
buildings in Flood Zones A and V have a $500,000 deductible per building; earthquake – 2% of the combined value of
the property at the location, subject to a minimum deductible of $100,000 per location and the deductible applies
separately to each location.
At June 30, 2016, a total claims liability of $12,566,534 is reported in the Risk and Benefits Internal Service Fund.
Claims liabilities reported by the City are based on an actuarial estimate of the ultimate cost of settling claims
incurred, including incurred but not reported (IBNR) claims. Claims liabilities include all incremental costs incurred
directly as a result of a claim, and consider estimated recoveries on both settled and unsettled claims. Claims
expense has been reduced by amounts recovered, or expected to be recovered through excess insurance.
The following changes occurred in the claims liability in the current and previous fiscal year:
(B) Joint Ventures
The City is a participant with Lane County and the City of Springfield in the Metropolitan Wastewater Management
Commission (MWMC), a joint venture established by intergovernmental agreement to construct, maintain, and
operate regional sewerage facilities. The MWMC consists of a seven-member board to which the City appoints three
voting members. The City has no explicit, measurable equity interest in the MWMC. However, the City has an
ongoing financial responsibility for the operations of the MWMC in that the City is obligated to adopt disposal rates
and charges not less than those adopted by the MWMC, and to forward to the MWMC, its share of the revenues as
specified in the adopted financing plan, which requires that all MWMC administrative, operational, and maintenance
expenses be financed through a uniform district-wide monthly fee.
MWMC contracts with the City for operation of the regional sewerage facilities on a cost reimbursement basis which is
accounted for in the Wastewater Utility Fund. For the fiscal year ended June 30, 2016, the City provided billable
operations to MWMC costing $14,060,179 and MWMC owed the City $1,271,204 for unreimbursed costs at year-end.
The City of Springfield includes the MWMC as a component unit of its financial reporting entity. MWMC’s most
recently published financial statement was for the year ended June 30, 2015, which reflected net income of
$6,468,251 and net position of $140,326,224. Separate financial statements for MWMC can be obtained from the
City of Springfield Finance Department.
continued
68
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(C) Retirement Plan – Oregon PERS (OPERS)
Plan Description
Employees of the City are provided with pensions through the Oregon Public Employees Retirement System
(OPERS) a cost-sharing multiple-employer defined benefit pension plan, the Oregon Legislature has delegated
authority to the Public Employees Retirement Board to administer and manage the system. All benefits of the System
are established by the legislature pursuant to ORS Chapters 238 and 238A. OPERS issues a publicly available
Comprehensive Annual Financial Report and Actuarial Valuation that can be obtained at:
http://www.oregon.gov/pers/Pages/section/financial_reports/financials.aspx
Plan Benefits
Tier One/Tier Two Retirement Benefit ORS Chapter 238.
The Tier One/Tier Two Retirement Benefit plan is closed to new members hired on or after August 29, 2003.
Pension Benefits
The PERS retirement allowance is payable monthly for life. It may be selected from 13 retirement benefit options.
These options include survivorship benefits and lump-sum refunds. The basic benefit is based on years of service
and final average salary. A percentage (2.0% for police and fire employees, 1.67% for general service employees) is
multiplied by the number of years of service and the final average salary. Benefits may also be calculated under either
a formula plus annuity (for members who were contributing before August 21, 1981) or a money match computation if
a greater benefit results.
A member is considered vested and will be eligible at minimum retirement age for a service retirement allowance if he
or she has had a contribution in each of five calendar years or has reached at least 50 years of age before ceasing
employment with a participating employer (age 45 for police and fire members). General service employees may
retire after reaching age 55. Police and fire members are eligible after reaching age 50. Tier One general service
employee benefits are reduced if retirement occurs prior to age 58 with fewer than 30 years of service. Police and fire
member benefits are reduced if retirement occurs prior to age 55 with fewer than 25 years of service. Tier Two
members are eligible for full benefits at age 60.
Death Benefits
Upon the death of a non-retired member, the beneficiary receives a lump-sum refund of the member’s account
balance (accumulated contributions and interest). In addition, the beneficiary will receive a lump-sum payment from
employer funds equal to the account balance, provided one or more of the following conditions are met:
• the member was employed by a PERS employer at the time of death,
• the member died within 120 days after termination of PERS-covered employment,
• the member died as a result of injury sustained while employed in a PERS-covered job, or
• the member was on an official leave of absence from a PERS-covered job at the time of death.
Disability Benefits
A member with 10 or more years of creditable service who becomes disabled from other than duty-connected causes
may receive a non-duty disability benefit. A disability resulting from a job-incurred injury or illness qualifies a member
(including PERS judge members) for disability benefits regardless of the length of PERS-covered service. Upon
qualifying for either a non-duty or duty disability, service time is computed to age 58 (55 for police and fire members)
when determining the monthly benefit.
Benefit Changes After Retirement
Members may choose to continue participation in a variable equities investment account after retiring and may
experience annual benefit fluctuations due to changes in the market value of equity investments. Under ORS
238.360, monthly benefits are adjusted annually through cost-of-living (COLA) changes. All monthly pension and
annuity benefits except unit purchases are eligible for postretirement adjustments. As a result of the Senate Bills 822
Moro v. State of Oregon
and 861 and the Oregon Supreme Court decision in , automatic postretirement adjustments
are based on a blended COLA rate.
continued
69
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(C) Retirement Plan – Oregon PERS (OPERS), continued
Benefit Changes After Retirement, continued
Moro
The Supreme Court decision in requires that members “will be entitled to receive during retirement a blended
COLA rate that reflects the different COLA provisions applicable to benefits earned at different times.” The Supreme
Court did not articulate a specific methodology for determining the blended COLA. For purposes of this valuation,
PERS has determined the blend based on creditable service earned before and after October 2013. This approach is
consistent with OAR 459-005- 0510 adopted by the PERS Board in September 2015.
Automatic COLA for benefits earned prior to SB 822 and SB 861
Benefits are adjusted annually to reflect the increase or decrease in the Consumer Price Index (Portland area -
all items) as published by the Bureau of Labor Statistics. The maximum adjustment to be made for any year is 2
percent of the previous year’s benefit, except for 2013 when the adjustment is limited to 1.5 percent. Any CPI
change in excess of the limit is accumulated for future benefit adjustments that would otherwise be less than the
limit. No benefit will be decreased below its original amount.
Automatic Adjustments for benefits earned Post-2013
In 2014 and future years benefits will be increased annually based on a marginal rate schedule. The increase is
calculated as 1.25 percent on the first $60,000 of annual benefit and 0.15 percent on amounts above $60,000 of
annual benefit.
Plan Benefits
OPSRP Pension Program (OPSRP DB)
The OPSRP Pension Program (ORS Chapter 238A) provides benefits to members hired on or after August 29, 2003.
Pension Benefits
This portion of the OPSRP pension program provides a life pension funded by employer contributions. Benefits are
calculated with the following formula for members who attain normal retirement age:
Police and fire: 1.8% is multiplied by the number of years of service and the final average salary. Normal retirement
age for police and fire members is age 60 or age 53 with 25 years of retirement credit. To be classified as a police
and fire member, the individual must have been employed continuously as a police and fire member for at least five
years immediately preceding retirement.
General service: 1.5% is multiplied by the number of years of service and the final average salary. Normal retirement
age for general service members is age 65, or age 58 with 30 years of retirement credit.
A member of the OPSRP Pension Program becomes vested on the earliest of the following dates: the date the
member completes 600 hours of service in each of five calendar years, the date the member reaches normal
retirement age, and, if the pension program is terminated, the date on which termination becomes effective.
Death Benefits
Upon the death of a non-retired member, the spouse or other person who is constitutionally required to be treated in
the same manner as the spouse, receives, for life, 50% of the pension that would otherwise have been paid to the
deceased member.
Disability Benefits
A member who has accrued 10 or more years of retirement credits before the member becomes disabled or a
member who becomes disabled due to job-related injury shall receive a disability benefit of 45% of the member’s
salary determined as of the last full month of employment before the disability occurred.
continued
70
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(C) Retirement Plan – Oregon PERS (OPERS), continued
Benefit Changes After Retirement
Under ORS 238A.210, monthly benefits are adjusted annually through cost-of-living (COLA) changes. All monthly
pension and annuity benefits are eligible for postretirement adjustments. As a result of the Senate Bills 822 and 861
and the Oregon Supreme Court decision in Moro v. State of Oregon, automatic postretirement adjustments are based
on a blended COLA rate based on when the benefits were earned.
Automatic COLA for benefits earned prior to SB 822 and SB 861
Benefits are adjusted annually to reflect the increase or decrease in the Consumer Price Index (Portland area -
all items) as published by the Bureau of Labor Statistics. The maximum adjustment to be made for any year is 2
percent of the previous year’s benefit, except for 2013 when the adjustment is limited to 1.5 percent. Any CPI
change in excess of the limit is accumulated for future benefit adjustments that would otherwise be less than the
limit. No benefit will be decreased below its original amount.
Automatic Adjustments for benefits earned Post-2013
In 2014 and future years benefits will be increased annually based on a marginal rate schedule. The increase is
calculated as 1.25 percent on the first $60,000 of annual benefit and 0.15 percent on amounts above $60,000 of
annual benefit.
Contributions
PERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions,
expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due.
This funding policy applies to the PERS Defined Benefit Plan and the Other Postemployment Benefit Plans.
Employer contribution rates during the period were based on the December 31, 2013 actuarial valuation which
became effective July 1, 2015. The rates in effect for the fiscal year ended June 30, 2016 were 17.50% for Tier
One/Tier Two covered members, 10.05% for OPSRP Pension Program General Service Members, and 14.16% for
OPSRP Pension Program Police and Fire Members. The City also charged an internal rate of 6.00% of payroll to
departments to fund the repayment of the City’s pension obligation bonds, which were issued in 2002. Employer
contributions for the year ended June 30, 2016 were $14,860,759.
Pension Assets, Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources
Related to Pensions
At June 30, 2016, the City reported ($75,419,692) for its proportionate share of the net pension asset (liability). The
net pension asset (liability) was measured as of June 30, 2015, and the total pension asset used to calculate the net
pension asset (liability) was determined by an actuarial valuation as of December 31, 2013 rolled forward to June 30,
2015. The City's proportion of the net pension asset (liability) was based on a projection of the City's long-term share
of contributions to the pension plan relative to the projected contributions of all participating entities, actuarially
determined. At June 30, 2015, the City's proportion was 1.3136%, which was a decrease from its proportion
measured as of June 30, 2014.
For the year ended June 30, 2016, the City recognized pension expense (income) of $73,801,307. At June 30, 2016,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
continued
71
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(C) Retirement Plan – Oregon PERS (OPERS), continued
Pension Assets, Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources
Related to Pensions, continued
DeferredDeferred
outflows ofinflows of
resourcesresources
Changes in proportion and differences between City
contributions and proportionate shares of contributions$
03,923,974
Contributions subsequent to the measurement date
14,860,7590
Difference between expected and actual experience with
regard to economic or demographic factors
4,067,0120
Net difference between projected and actual earnings on
pension plan investments
015,809,677
$18,927,77119,733,651
The $14,860,759 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized in the year ending June 30, 2017. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension
income (expense) as follows:
DeferredDeferred
Fiscal yearoutflows ofinflows of
ending June 30resourcesresources
2017$(924,321)8,475,718
2018(924,321)8,475,718
2019(924,321)8,475,721
2020(924,321)(5,977,203)
2021(369,728)283,697
Actuarial Valuations
The employer contribution rates effective July 1, 2015, through June 30, 2017, were set using the projected unit credit
actuarial cost method. For the Tier One/Tier Two component of the PERS Defined Benefit Plan, this method
produced an employer contribution rate consisting of 1) an amount for normal cost (the estimated amount necessary
to finance benefits earned by the employees during the current service year), 2) an amount for the amortization of
unfunded actuarial accrued liabilities, which are being amortized over a fixed period with new unfunded actuarial
accrued liabilities being amortized over 20 years. For the OPSRP Pension Program component of the PERS Defined
Benefit Plan, this method produced an employer contribution rate consisting of 1) an amount for normal cost (the
estimated amount necessary to finance benefits earned by the employees during the current service year), 2) an
amount for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period
with new unfunded actuarial accrued liabilities being amortized over 16 years.
continued
72
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(C) Retirement Plan – Oregon PERS (OPERS), continued
Actuarial Valuations, continued
The total pension liability in the December 31, 2013 actuarial valuation was determined using the following:
Valuation Date:December 31, 2013
Measurement Date:June 30, 2015
Experience Study Report:2014, published September 2015
Actuarial cost methodEntry Age Normal
Amortization method:Amortized as a level percentage of payroll as layered amortization bases over
a closed period; Tier One/Tier Two UAL is amortized over 20 years and
OPSRP pension UAL is amortized over 16 years.
Asset valuation method:Market value of assets
Actuarial assumptions
Inflation rate:2.75%
Investment rate of return:7.75%
Projected salary increases:3.75%
Cost of living adjustmentsBlend of 2.00% COLA and graded COLA
Mortality:Healthy retirees and beneficiaries:
RP-2000 Sex-distinct, generational per Scale AA, with collar adjustments and
set-backs as described in the valuation.
Active members:
Mortality rates are a percentage of healthy retiree rates that vary by group, as
described in the valuation.
Disabled retirees:
Mortality rates are a percentage (65% for males, 90% for females) of the
RP-2000 static combined disabled mortality sex-distinct table.
Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about
the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual
results are compared to past expectations and new estimates are made about the future. Experience studies are
performed as of December 31 of even numbered years. The methods and assumptions shown above are based on
the 2014 Experience Study which reviewed experience for the four-year period ending on December 31, 2014.
GASB Statement No. 68 reporting requirements allows for the measurement date (June 30, 2015) to be 12 months
prior to the reporting date (June 30, 2016) and the actuarial valuation date (December 31, 2013) to be 30 months
prior to the reporting date. The new pension asset (liability) for the June 30, 2017 reporting data will be based on the
December 31, 2015 actuarial valuation date.
Discount Rate
The discount rate used to measure the total pension liability was 7.75% for the Defined Benefit Pension Plan. The
projection of cash flows used to determine the discount rate assumed that contributions from plan members and
those of the contributing employers are made at the contractually required rates, as actuarially determined. Based on
those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments for the Defined Benefit Pension Plan was applied to all periods of projected benefit payments to
determine the total pension liability.
continued
73
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(C) Retirement Plan – Oregon PERS (OPERS), continued
Long-Term Expected Rate of Return
To develop an analytical basis for the selection of the long-term expected rate of return assumption, in July 2013 the
PERS Board reviewed long-term assumptions developed by both Milliman’s capital market assumptions team and the
Oregon Investment Council’s (OIC) investment advisors. The table below shows Milliman’s assumptions for each of
the asset classes in which the plan was invested at that time based on the OIC long-term target asset allocation. The
OIC’s description of each asset class was used to map the target allocation to the asset classes.
Each asset class assumption is based on a consistent set of underlying assumptions, and includes adjustment for the
inflation assumption. These assumptions are not based on historical returns, but instead are based on a forward-
looking capital market economic model.
LowHigh
Asset class/StrategyRangeRangeTarget
Cash0.0%3.0%0.0%
Debt Securities15.0%25.0%20.0%
Public Equity32.5%42.5%37.5%
Private Equity16.0%24.0%20.0%
Real Estate9.5%15.5%12.5%
Alternative Equity0.0%10.0%10.0%
Opportunity Portfolio0.0%3.0%0.0%
Total100.0%
Compound
annual
return
Asset classTarget (geometric)
Core fixed income 7.20%4.50%
Short-term bonds 8.00%3.70%
Intermediate-term bonds 3.00%4.10%
High yield bonds 1.80%6.66%
Large cap US equities 11.65%7.20%
Mid cap US equities 3.88%7.30%
Small cap US equities2.27%7.45%
Developed foreign equities 14.21%6.90%
Emerging foreign equities 5.49%7.40%
Private equity 20.00%8.26%
Opportunity funds/absolute return 5.00%6.01%
Real estate (Property) 13.75%6.51%
Real estate (REITS) 2.50%6.76%
Commodities 1.25%6.07%
100.00%
Assumed inflation – mean 2.75%
continued
74
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(C) Retirement Plan – Oregon PERS (OPERS), continued
Depletion Date Projection
GASB 68 generally requires that a blended discount rate be used to measure the Total Pension Liability (the
Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term
expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net
Position is projected to cover benefit payments and administrative expenses. A 20-year high quality (AA/Aa or
higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover
benefit payments and administrative expenses. Determining the discount rate under GASB 68 will often require
that the actuary perform complex projections of future benefit payments and pension plan investments. GASB 68
(paragraph 67) does allow for alternative evaluations of projected solvency, if such evaluation can reliably be
made. GASB does not contemplate a specific method for making an alternative evaluation of sufficiency; it is left
to professional judgment.
The following circumstances justify an alternative evaluation of sufficiency for PERS:
PERS has a formal written policy to calculate an Actuarially Determined Contribution (ADC), which is
articulated in the actuarial valuation report.
The ADC is based on a closed, layered amortization period, which means that payment of the full ADC
each year will bring the plan to a 100% funded position by the end of the amortization period if future
experience follows assumption.
GASB 68 specifies that the projections regarding future solvency assume that plan assets earn the
assumed rate return and there are no future changes in the plan provisions or actuarial methods and
assumptions, which means that the projections would not reflect any adverse future experience which
might impact the plan’s funded position.
Based on these circumstances, it is our independent actuary’s opinion that the detailed depletion date projections
outlined in GASB 68 would clearly indicate that the Fiduciary Net Position is always projected to be sufficient to
cover benefit payments and administrative expenses.
Sensitivity of the City's proportionate share of the net pension asset (liability) to changes in the discount rate
The following presents the City's proportionate share of the net pension asset (liability) calculated using the discount
rate of 7.75%, as well as what the City's proportionate share of the net pension asset (liability) would be if it were
calculated using a discount rate that is 1 percentage-point lower (6.75%) or 1 percentage-point higher (8.75%) than
the current rate:
Current
1% decreasediscount rate1% increase
(6.75%)(7.75%)(8.75%)
City’s proportionate share of the net
pension asset (liability) $(182,022,620)(75,419,692)14,418,570
Pension plan fiduciary net position
Detailed information about the pension plan's fiduciary net position is available in the separately issued OPERS
financial report
Changes in Plan Provisions Subsequent to Measurement Date
In accordance with statute, a biennial review of actuarial methods and assumptions was completed in 2015 to be
used for the December 31, 2014 actuarial valuation. After completion of this review and subsequent to the
measurement date, the PERS Board adopted several assumption changes, including lowering the investment return
assumption to 7.50%, which became effective January 1, 2016.
continued
75
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(D) Retirement Plan – OPSRP IAP
Plan Description
OPSRP Individual Account Program (IAP) is a defined contribution pension plan for Tier One/Tier Two and OPSRP
plan members. All benefits of the system are established by the legislature pursuant to ORS Chapters 238 and 238A.
Plan Benefits
An IAP member becomes vested on the date the employee account is established or on the date the rollover account
was established. If the employer makes optional employer contributions for a member, the member becomes vested
on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar
years, the date the member reaches normal retirement age, the date the IAP is terminated, the date the active
member becomes disabled, or the date the active member dies.
Upon retirement, a member of the OPSRP Individual Account Program may receive the amounts in his or her
employee account, rollover account, and vested employer account as a lump-sum payment or in equal installments
over a 5, 10, 15, or 20-year period or an anticipated life span option. Each distribution option has a $200 minimum
distribution limit.
Death Benefits
Upon the death of a non-retired member, the beneficiary receives in a lump sum the member’s account balance,
rollover account balance, and vested employer optional contribution account balance. If a retired member dies before
the installment payments are completed, the beneficiary may receive the remaining installment payments or choose a
lump-sum payment.
Recordkeeping
PERS contracts with VOYA Financial to maintain IAP participant records.
Contributions
State statute requires that covered employees contribute 6.0% of their annual covered salary to the IAP plan effective
January 1, 2004. Statute allows that the employer may elect to pay the employees’ required IAP contributions.
The City has elected to pay all of the employees’ required IAP contributions, except for employees who are members
of the City’s International Association of Fire Fighters (IAFF) union. Beginning July 1, 2012, IAFF covered employees
elected to pay the employees’ required IAP contribution.
For the fiscal year ended June 30, 2016, the City’s contributions and IAFF covered employees’ contributions to the
IAP were $4,893,076 and $1,122,334, respectively (a total of 6.01% of covered payroll).
(E) Other Post-employment Benefits (OPEB)
Oregon Public Employees Retirement Systems’ (PERS) Retiree Health Insurance Account (RHIA)
Plan Description
The City contributes to the Oregon Public Employees Retirement Systems’ (PERS) Retiree Health Insurance Account
(RHIA), a cost-sharing multiple-employer defined benefit post-employment healthcare plan administered by the
Oregon Public Employees Retirement Board (OPERB). The plan, which was established under Oregon Revised
Statutes 238.420, provides a payment of up to $60 per month towards the costs of health insurance for eligible PERS
retirees. RHIA post-employment benefits are set by state statue. A comprehensive annual financial report of the
funds administered by the OPERB may be obtained by writing to Oregon Public Employees Retirement System, P.O.
Box 23700, Tigard, OR 97281-3700, by calling (503) 598-7377, or by accessing the PERS website at
http://oregon.gov/PERS/.
continued
76
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(E) Other Post-employment Benefits (OPEB), continued
Funding Policy
Participating employers are contractually required to contribute to the RHIA at a rate assessed bi-annually by the
OPERB, currently 0.35% of annual covered payroll. The OPERB sets the employer contribution rate based on the
annual required contribution (ARC) of the employers, an amount actuarially determined in accordance with the
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) of the
plan over a period not to exceed thirty years. The City’s contributions to the PERS RHIA for the past three years were
as follows, all of which equaled the required contributions for that year:
Fiscal year
ending June 30Contribution
2014$510,982
2015355,476
2016318,176
City Healthcare Plan
Plan Description
The City administers a single-employer defined benefit healthcare plan that provides post-retirement medical, dental,
and vision coverage for eligible retirees, their spouses, domestic partners, and dependents on a self-pay basis.
Benefit provisions are established through negotiations between the City and representatives of collective bargaining
units. Eligible participants may select from one of the City’s two self-insured healthcare plans: the City Health Plan or
the City Managed Care Plan. The level of benefits provided by the plans are the same as those afforded to active
employees. Coverage is provided to retirees, spouses, and domestic partners until they become eligible for
Medicare, typically age 65, and to eligible dependents until age 26.
The City’s post-retirement healthcare plan was established in accordance with Oregon Revised Statutes (ORS)
243.303. ORS stipulate that for the purpose of establishing healthcare premiums, the rate must be based on all plan
members, including both active employees and retirees. Due to the effect of age, retiree claim costs are generally
higher than claim costs for all members as a whole. The difference between retiree claims costs and the amount of
retiree healthcare premiums represents the City’s implicit employer contribution.
The City also provides post-employment life insurance benefits to fully disabled employees through a single employer
defined benefit plan. The plan provides a waiver of life insurance premiums for employees who participate in the
City’s life insurance plan who become totally disabled; the plan is underwritten by Standard Insurance Company,
whereby the City pays a premium rate for active and disabled employees, and Standard Insurance Company provides
term life insurance coverage. In the event the City changes life insurance carriers, Standard Insurance Company
does not retain any liability for future death benefits. In changing life insurance carriers, if the new carrier was
unwilling to accept the liability for the disabled employees, the City would be responsible for any future death benefits.
The City’s post-employment life insurance benefit for disabled employees is an elective benefit offered by the City,
this benefit is subject to collective bargaining agreements. The amount of life insurance benefits that a disabled
employee receives is based on the amount of coverage and the reduction pattern in effect at the time of disablement.
The coverage amount varies per employer group; the maximum benefit is $250,000.
The City did not establish an irrevocable trust (or equivalent arrangement) to account for either plan. Instead, the
activities of the plans are reported in the City’s Risk and Benefits Internal Service Fund. Neither plan issues a
separate report.
Funding Policy
The City has the authority to establish and amend contribution requirements. The required contribution is based on
projected pay-as-you-go financing requirements. Since the City’s healthcare plan is self-insured, the annual required
contributions can fluctuate. For the fiscal year ending June 30, 2016, the City’s combined plan contributions were
$1,992,072.
continued
77
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(E) Other Post-employment Benefits (OPEB), continued
Annual OPEB Cost and Net OPEB Obligation
The City’s annual other post-employment benefit cost (expense) is calculated based on the annual required
contribution of the employer, an amount actuarially determined in accordance within the parameters of GASB 45.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year
and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The
following table shows the components of the City’s annual OPEB cost for the fiscal year ending June 30, 2016, the
amount actually contributed to the plans, and changes in the City’s net OPEB obligation:
Annual required contribution$1,052,576
Interest on net OPEB obligation119,870
Adjustment to the annual required contribution(174,893)
Annual OPEB cost (expense)997,553
Contributions made1,992,072
Increase (decrease) in net OPEB obligation(994,519)
Net OPEB obligation, beginning of year3,050,124
Net OPEB obligation, end of year$2,055,605
The City’s annual OPEB cost, the contribution, the percentage of annual OPEB cost contributed to the plans, and the
net OPEB obligation for 2016 and the preceding two years were as follows:
Percentage of
Fiscal year Annualannual OPEB Net OPEB
ending June 30 OPEB cost Contributioncost contributed obligation
2014 $ 1,152,315 1,666,001 145% 3,249,619
2015 993,954 1,193,449 120% 3,050,124
2016 997,553 1,992,072 200% 2,055,605
Funded Status and Funding Progress
As of June 30, 2015, the most recent actuarial valuation date, the actuarial accrued liability (AAL) for benefits was
$13,181,876, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability of
$13,181,876. The covered payroll (annual payroll of active employees covered by the plans) was $97,086,746, and
the ratio of the UAAL to the covered payroll was 13.6%.
As of June 30, 2016, the City has set aside $3,753,997 to pay for future post-employment benefits, which is included
in the unrestricted portion of net position in the Risk and Benefits Internal Service Fund. Since these assets have not
been placed in a qualified trust (or equivalent arrangement) they have not been recognized as part of the actuarial
valuation.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events into the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information, following the notes to the basic financial statements, presents multiyear trend information
about whether the actuarial value of plan assets is increasing or decreasing over time, relative to the actuarial
accrued liabilities for benefits.
continued
78
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(E) Other Post-employment Benefits (OPEB), continued
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by
the employer and the plan members) and include the types of benefits provided at the time of each valuation and the
historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
The June 30, 2015 actuarial valuations for the healthcare plan and the post-employment life insurance benefits for
disabled employees were based on the entry age normal and the projected unit credit actuarial cost methods,
respectively. The actuarial assumptions for both valuations included an investment return of 3.93%. The healthcare
plan actuarial valuation included a healthcare cost inflation trend rate of -1.6% in 2015 increasing to 5.0% in 2020.
The unfunded actuarially accrued liability and the gains and losses for both plans are amortized as a level dollar
amount over an open period of 30 years.
(F) Contingencies
The City is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its
operations. Claims covered by the City’s self-insurance internal service fund are reviewed and losses are accrued
based upon the judgment of City management. Based upon the advice of legal counsel with respect to such litigation
and claims, City management cannot determine what effect the ultimate disposition of these matters will have on the
financial position or results of operations of City funds.
(G) Outstanding Encumbrances
At June 30, 2016, the City has encumbered the following significant commitments:
Amount
$
2,027,252
617,982
1,659,057
402,395
27,000
4,556,972
12,554
655,138
2,160,084
2,657,371
2,508,361
$
17,284,166
continued
79
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(H) Accounting Standards Issued but not yet Adopted
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions
GASB Statement No. 75, ,
was issued in June 2015. This Statement establishes new accounting and financial reporting requirements for
governments whose employees are provided with OPEB, as well as for certain nonemployer governments that have a
legal obligation to provide financial support for OPEB provided to the employees of other entities. This Statement
Accounting and Financial Reporting by Employers for
replaces the requirements of Statements No. 45,
Postemployment Benefits Other Than Pensions OPEB Measurements by Agent Employers
, as amended, and No. 57,
and Agent Multiple-Employer Plans
, for OPEB. The requirements of this Statement will improve the decision-
usefulness of information in employer and governmental nonemployer contributing entity financial reports and will
enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire OPEB
liability and a more comprehensive measure of OPEB expense. Decision-usefulness and accountability also will be
enhanced through new note disclosures and required supplementary information. This Statement is effective for fiscal
years beginning after June 15, 2017. Earlier application is encouraged.
Tax Abatement Disclosures
GASB Statement No. 77, , was issued in August 2015. This Statement requires
disclosure of tax abatement information about (1) a reporting government’s own tax abatement agreements and (2)
those that are entered into by other governments and that reduce the reporting government’s tax revenues. The
requirements of this Statement improve financial reporting by giving users of financial statements essential
information that is not consistently or comprehensively reported to the public at present. Disclosure of information
about the nature and magnitude of tax abatements will make these transactions more transparent to financial
statement users. As a result, users will be better equipped to understand (1) how tax abatements affect a
government’s future ability to raise resources and meet its financial obligations and (2) the impact those abatements
have on a government’s financial position and economic condition. The requirements of this Statement are effective
for financial statements for periods beginning after December 15, 2015. Earlier application is encouraged.
An Amendment of GASB Statements No. 67, Financial Reporting for Pension Plans, No.
GASB Statement No. 82,
68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions
and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of
GASB Statements 67 and 68
.This statement will improve financial reporting by enhancing consistency in the
application of financial reporting requirements to certain pension issues. Specifically, this Statement addresses
issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the
selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for
financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan
member) contribution requirements. This Statement is effective for fiscal years beginning after June 15, 2016. Earlier
application is encouraged.
80
REQUIRED SUPPLEMENTARY INFORMATION
Required Supplementary
Information
A-1
City of Eugene, Oregon
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
BudgetActual
BudgetGAAP
OriginalFinalbasisAdjustmentbasis
Revenues
Taxes106,999,000108,199,000107,289,5700107,289,570
Licenses and permits6,170,0006,170,00024,092,719024,092,719
Intergovernmental4,560,3575,588,5444,744,17104,744,171
Rental income127,040127,040145,7280145,728
Charges for services13,112,25313,560,25313,739,960(692,841)13,047,119
Fines and forfeits2,474,2002,601,2002,426,71202,426,712
Miscellaneous477,947477,947759,60528,031787,636
Total revenues133,920,797136,723,984153,198,465(664,810)152,533,655
Expenditures
Current - departmental:
Central services22,906,24325,049,39822,995,115(7,537,657)15,457,458
Fire and emergency medical services27,594,83028,837,50628,222,239(30,000)28,192,239
Library, recreation, and cultural services27,348,75427,781,82126,874,80516,67126,891,476
Planning and development5,919,0557,004,7685,860,617(263,020)5,597,597
Police49,611,91050,631,82250,050,092(13,262)50,036,830
Public works5,790,2486,156,5075,993,4539,9676,003,420
Special payments700,000700,000430,071(430,071)0
Total expenditures139,871,040146,161,822140,426,392(8,247,372)132,179,020
Excess (deficiency) of
revenues over expenditures(5,950,243)(9,437,838)12,772,0737,582,56220,354,635
Other financing sources (uses)
Transfers in9,519,1459,519,1459,519,145(7,438,000)2,081,145
Transfers out(4,379,300)(5,279,300)(5,279,300)0(5,279,300)
Total other financing sources (uses)5,139,8454,239,8454,239,845(7,438,000)(3,198,155)
Net change in fund balance(810,398)(5,197,993)17,011,918144,56217,156,480
Fund balance, July 1, 201539,214,36240,179,46640,179,466854,14841,033,614
Fund balance, June 30, 201638,403,96434,981,47357,191,384998,71058,190,094
81
A-2
City of Eugene, Oregon
Communit Develoment Fund
yp
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
BudgetActual
BudgetGAAP
OriginalFinalbasisAdjustmentbasis
Revenues
Intergovernmental4,728,9577,832,4152,020,08002,020,080
Charges for services83,95083,9506,08806,088
Repayment of revolving loans0002,053,4582,053,458
Miscellaneous515,6701,292,584549,6911,736551,427
Total revenues5,328,5779,208,9492,575,8592,055,1944,631,053
Expenditures
Current - departmental:
Central services000123,000123,000
Planning and development2,372,4813,570,8441,842,1372,681,7034,523,840
Debt service368,000368,000327,6420327,642
Capital outlay1,582,1341,582,134143,2590143,259
Special payments9,329,9598,459,0682,681,703(2,681,703)0
Total expenditures13,652,57413,980,0464,994,741123,0005,117,741
Excess (deficiency) of
revenues over expenditures(8,323,997)(4,771,097)(2,418,882)1,932,194(486,688)
Other financing sources (uses)
Principal payments received2,748,6002,748,6002,053,458(2,053,458)0
Interfund loan proceeds065,00065,000(65,000)0
Transfers out(123,000)(123,000)(123,000)123,0000
Total other financing sources (uses)2,625,6002,690,6001,995,458(1,995,458)0
Net change in fund balance(5,698,397)(2,080,497)(423,424)(63,264)(486,688)
Fund balance, July 1, 20156,888,3973,650,6603,650,6601,2723,651,932
Fund balance, June 30, 20161,190,0001,570,1633,227,236(61,992)3,165,244
82
CITY OF EUGENE, OREGON
Notes to Required Supplementary Information
June 30, 2016
(1) The City’s proportionate share of the net pension asset (liability) is actuarially determined by comparing the City’s
projected long-term contributions to OPERS to the total projected long-term contributions to the plan from all
employers.
Schedule of City’s Proportionate Share of the Net Pension Asset (Liability)
201620152014
Proportion of the net pension asset (liability)1.31%1.35%1.35%
Proportionate share of the net pension asset (liability)$(75,419,692)30,504,733(69,360,287)
Covered-employee payroll100,127,79395,710,43592,451,727
Proportionate share of the net pension asset (liability) as a
percentage of its covered-employee payroll-75.32%31.87%-75.02%
Plan fiduciary net position as a percentage of the total
pension asset (liability)91.90%103.60%N/A
Schedule of City contributions
201620152014
Contractually required contribution$14,860,75912,098,45511,751,145
Contributions in relation to the contractually required
contribution(14,860,759)(12,098,455)(11,751,145)
Contribution deficiency (excesses)$000
Covered-employee payroll100,127,79395,710,43592,451,727
Contributions as a percentage of covered-employee payroll14.84%12.64%12.71%
Information about the significant methods and assumptions used in calculating the actuarially determined
contributions may be found below.
Changes in Plan Provisions and Assumptions
A summary of key changes in plan provisions are described in the Oregon Public Employees Retirement System’s
GASB 68 Audit Report, which can be found at:
https://www.oregon.gov/pers/EMP/docs/gasb_68_report.pdf
Additional details and a comprehensive list of changes in methods and assumptions can be found in the 2014
Experience Study for the System, which was published on September 23, 2015, and can be found at:
https://www.oregon.gov/pers/docs/2014_experience_study_9-23-15.pdf
(2) Schedule of Funding Progress – OPEB
Other Post Employment Benefits schedule of funding progress:
Unfunded
Unfunded actuarial
Actuarial Actuarial Actuarial actuarial accrued liability
valuation value of accrued accrued Funded Covered as a percentage
date assets liability liability ratio payroll of covered payroll
06/30/11 $ 0 9,502,642 9,502,642 0% 91,224,907 10%
06/30/13 0 14,171,194 14,171,194 0% 93,916,203 15%
06/30/15 0 13,181,876 13,181,876 0% 97,086,746 14%
The City’s other post employment benefits include retiree healthcare and waiver of life insurance premiums for
disabled employees. The actuarial cost method for retiree healthcare benefits is entry age normal; the cost method
for waiver of life insurance premiums for disabled employees is projected unit cost.
83
CITY OF EUGENE, OREGON
Notes to Required Supplementary Information
(3) Budget to GAAP Reconciliation
Sections of Oregon Revised Statutes (Oregon Budget Law) require most transactions be budgeted on the modified
accrual basis of accounting. However, there are certain transactions where statutory budget requirements conflict
with generally accepted accounting principles (GAAP). The following discusses the differences between the budget
basis and GAAP basis of accounting for the General Fund and the Community Development Fund.
Principal payments received of $2,053,458 and loans granted of $2,681,703 are reported in the Community
Development Fund as other financing sources and non-departmental expenditures, respectively. Such amounts have
been reclassified as revenues and departmental expenditures on a GAAP basis. In addition, indirect cost
reimbursements are reclassified from transfers to departmental administrative expenditures on a GAAP basis. Such
reclassifications are not included in the above schedule.
84
OTHER SUPPLEMENTARY INFORMATION
Other Supplementary Information
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS
B-1
City of Eugene, Oregon
Combinin Balance Sheet
g
Nonmajor Governmental Funds
June 30, 2016
(amounts in dollars)
SpecialDebtCapital
RevenueServiceProjects
FundsFundsFundsTotal
Assets
Equity in pooled cash and investments33,791,8951,126,4279,030,32443,948,646
Receivables:
Interest28,76836,949065,717
Taxes98,977154,8470253,824
Accounts957,06000957,060
Assessments81,029200,52666,320347,875
Loans and notes2,396,588002,396,588
Allowance for uncollectibles(154,376)00(154,376)
Due from other governments1,432,6946,256718,6452,157,595
Interfund loans receivable65,0000065,000
Inventories1,138,749001,138,749
Prepaids and deposits31,6490031,649
Assets held for resale01,541990,265991,806
Total assets39,868,0331,526,54610,805,55452,200,133
Liabilities
Accounts payable395,7640564,305960,069
Wages payable677,16700677,167
Due to other governments159,222046,255205,477
Deposits32,11101,092,1331,124,244
Unearned revenue65,9400197,311263,251
Total liabilities1,330,20401,900,0043,230,208
Deferred inflows of resources
Unavailable revenue2,586,636393,56066,5863,046,782
Total deferred inflows of resources2,586,636393,56066,5863,046,782
Fund balances
Nonspendable1,250,3981,541990,2652,242,204
Restricted22,492,1221,131,4456,719,50630,343,073
Committed12,208,67301,129,19313,337,866
Total fund balances35,951,1931,132,9868,838,96445,923,143
Total liabilities, deferred inflows
of resources, and fund balances39,868,0331,526,54610,805,55452,200,133
85
B-2
City of Eugene, Oregon
Combinin Statement of Revenues, Exenditures,
gp
and Chanes in Fund Balances
g
Nonmajor Governmental Funds
For the fiscal year ended June 30, 2016
(amounts in dollars)
SpecialDebtCapital
RevenueServiceProjects
FundsFundsFundsTotal
Revenues
Taxes1,529,7422,040,6143,050,8456,621,201
Licenses and permits9,247,406009,247,406
Intergovernmental10,938,75001,079,70212,018,452
Rental income179,249039,707218,956
Charges for services5,425,2830244,4085,669,691
Fines and forfeits13,7340013,734
Special assessments9,13871,26922,763103,170
Repayment of revolving loans261,81100261,811
Miscellaneous1,370,87952,95554,1081,477,942
Total revenues28,975,9922,164,8384,491,53335,632,363
Expenditures
Current - departmental:
Central services3,748,765003,748,765
Fire and emergency medical services289,94800289,948
Library, recreation, and cultural services349,16400349,164
Planning and development6,665,1150860,1607,525,275
Police2,430,889002,430,889
Public works12,686,5380012,686,538
Debt service:
Principal02,155,06602,155,066
Interest0190,6100190,610
Issuance costs005,6805,680
Capital outlay109,137010,208,93110,318,068
Total expenditures26,279,5562,345,67611,074,77139,700,003
Excess (deficiency) of
revenues over expenditures2,696,436(180,838)(6,583,238)(4,067,640)
Other financing sources (uses)
Proceeds of debt issuance006,879,7006,879,700
Transfers in3,116,000030,0003,146,000
Transfers out(4,575,000)(479,535)(610,291)(5,664,826)
Total other financing sources (uses)(1,459,000)(479,535)6,299,4094,360,874
Net change in fund balances1,237,436(660,373)(283,829)293,234
Fund balances, July 1, 201534,713,7571,793,3599,122,79345,629,909
Fund balances, June 30, 201635,951,1931,132,9868,838,96445,923,143
86
SPECIAL REVENUE FUNDS
Special Revenue Funds
Combining statements for all individual nonmajor special revenue funds are reported here. The combined totals are
reported in the combining nonmajor governmental fund statements at B-1 and B-2. Fund statements for major special
revenue funds are reported in Exhibits 3 and 4 of the basic financial statements.
Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented here for
each individual nonmajor special revenue fund. Budget and actual comparisons for major special revenue funds are
reported as required supplementary information at A-2.
Major Special Revenue Fund:
Community Development Fund - To account for grant revenues received from the Federal government. Major
expenditures include capital improvements benefiting low income persons and community development loans.
Nonmajor Special Revenue Funds:
Construction and Rental Housing Fund - To account for construction permit services and rental housing code
fees related to all properties within the city limits and the urban growth boundary including compliance with
applicable laws and regulations.
Library, Parks, and Recreation Fund - To account for contributions from private donors to support the public
library and City-owned parks and recreation facilities.
Public Safety Communications Fund - To account for operations of the emergency dispatch center and the
regional radio system. Resources are primarily from telephone excise taxes and intergovernmental revenue.
Road Fund - To account for the operation and maintenance of the City's street transportation system.
Resources are provided from the City's share of State Highway Trust Fund allocations, State OTIA III monies,
fees and permits, and other miscellaneous grants.
Solid Waste and Recycling Fund - To account for business license revenues which are used to regulate solid
waste and recycling haulers and provide community education.
Special Assessment Management Fund - To account for operations of the property management and
assessment hardship deferral programs.
Telecom Registration and Licensing Fund - To account for registration fees and business privilege taxes
collected from providers of telecommunication services in Eugene. Resources are used for program
administration and telecom projects that benefit the community.
Urban Renewal Agency Fund - To account for administration of the Urban Renewal Agency.
Urban Renewal Agency Riverfront Fund - To account for the accumulation of tax increment resources and
rental income. Resources are used for improving the condition and appearance of the Riverfront District.
Urban Renewal Agency Riverfront Program Revenue Fund – To account for non-property tax resources in the
Riverfront District. Expenditures, in the form of loans, provide funding assistance to projects that meet the
goals and objectives of the Riverfront Urban Renewal District Plan, the EWEB Riverfront Master Plan, and the
Eugene Downtown Plan.
Total
Allowance for uncollectibles(7,320)00(1,316)000(145,740)00(154,376)
C-1
Equity in pooled cash and investments6,146,5074,755,3891,363,8342,685,702783,2271,229,5605,157,8961,921,0306,753,8442,994,90633,791,895 Interest00000009,82318,945028,768 Taxes0000000098,977098,97
7 Accounts83,5304,5000310,78500412,505145,74000957,060 Loans and notes016,000000002,380,588002,396,588Due from other governments28,854190431,714967,71900004,21701,432,6941,138,749Total
assets6,316,5714,776,0791,795,5485,105,685783,2271,310,5895,598,0044,311,4416,875,9832,994,90639,868,03332,11101,938,2336,757,6232,994,90622,492,1225,959,0184,701,4311,734,3474,493,437706,5681,225,8
095,439,8211,938,2336,757,6232,994,90635,951,1936,316,5714,776,0791,795,5485,105,685783,2271,310,5895,598,0044,311,4416,875,9832,994,90639,868,033
81,02965,000Prepaids and deposits0004,0460027,60300031,6490395,7640677,1670159,222065,94001,330,20402,586,63602,586,63601,250,398012,208,673
Renewal
Riverfront
Agency
Revenue
Urban
Program
0000000000000000
ConstructionLibrary,SolidSpecialTelecomUrbanRenewal
Riverfront
and RentalParks, andPublic SafetyWaste andAssessmentRegistrationRenewalAgency
Urban
61,201612,24876,6593,751158,1831,52343802,371,685117,92202,371,685117,922
087,2601,523420018000
Agency
00000
and Licensing
01,225,8095,412,218
060,853027,603
58,533314,12520,7933,75110,0700
Management
Assessments0000081,029081,029081,029
Interfund loans receivable65,00000000Inventories0001,138,749000
00
Recycling
775174,95951,348388,3724,621,4311,734,3473,350,642706,568
1,89386,0534,518000
Road
032,11101,142,795
05,000
000
Communications
000
Recreation
357,55358,648016,000016,000080,000
21,63557,844087
71700
Housing
269,17866,7405,570,646
00
Receivables:
Total deferred inflows of resources
of resources, and fund balances
Balance Sheet
ecial Revenue Fund
s
Total liabilities, deferred inflows
Deferred inflows of resources
Due to other governments
City of Eugene, Oregon
Unavailable revenue
Total fund balances
amounts in dollars
Unearned revenue
Accounts payable
)
Wages payable
Fund balances
Nonspendable
Total liabilities
g
p
June 30, 201
Combinin
6
or S
Committed
Restricted
Liabilities
Deposits
j
Nonma
Assets
(
87
Total
Transfers out000(135,000)00(1,450,000)0(2,990,000)0(4,575,000)Total other financing sources (uses)000(135,000)00(1,450,000)126,000(2,990,000)2,990,000(1,459,000)
C-2
10,938,7505,425,283
01,529,74209,247,4060179,24913,7340261,8117,413174,0417,38117,33935,78463,94159,7054,9061,370,8797,370,0471,058,8862,640,66312,337,166886,33970,1592,626,477325,7521,655,5974,90628,975,992
Central services820,0000197,000728,00074,00094,1681,835,5970003,748,765289,948349,164 Planning and development5,589,03216,00000731,91500133,796194,37206,665,1152,430,88912,686,538109,137Total
expenditures7,110,781474,3012,627,88913,002,737805,91594,1681,835,597133,796194,372026,279,556 revenues over expenditures259,266584,58512,774(665,571)80,424(24,009)790,880191,9561,461,2254,9062,69
6,436126,00002,990,0003,116,000Net change in fund balances259,266584,58512,774(800,571)80,424(24,009)(659,120)317,956(1,528,775)2,994,9061,237,436Fund balances, July 1, 20155,699,7524,116,8461,721,57
35,294,008626,1441,249,8186,098,9411,620,2778,286,398034,713,757Fund balances, June 30, 20165,959,0184,701,4311,734,3474,493,437706,5681,225,8095,439,8211,938,2336,757,6232,994,90635,951,193
9,138
Renewal
Riverfront
Agency
Revenue
Urban
Program
0000000000000000000000
0000000000000000000000000000000000000
ConstructionLibrary,SolidSpecialTelecomUrbanRenewal
Riverfront
and RentalParks, andPublic SafetyWaste andAssessmentRegistrationRenewalAgency
Urban
1,529,74266,150
0
0
Agency
261,811
0000
0000000
and Licensing
02,590,693
00000
00000
Management
09,138
64643,682
Recycling
01,888,571878,312
Road
032,268892,16410,014,318075,4413,419,48335,5911,741,086184,795 Public works411,8010012,274,737
0
es in Fund Balances
Communications
Police002,430,889
0
g
enditures, and Chan
Recreation
47,000953,369
037,658 Library, recreation, and cultural services0349,164Capital outlay0109,137
00000 Fire and emergency medical services289,94800
Housing
3,889,83013,734
0000
p
Statement of Revenues, Ex
ear ended June 30, 201
6
ecial Revenue Fund
s
Other financing sources (uses)
Repayment of revolving loans
Current - departmental:
City of Eugene, Oregon
Excess (deficiency) of
Licenses and permits
Special assessments
Charges for services
amounts in dollars
Intergovernmental
)Fines and forfeits
Total revenues
y
Rental incomeMiscellaneous
For the fiscal
g
Expenditures
p
Combinin
Transfers in
or S
Revenues
j
Nonma
Taxes
(
88
C-3
City of Eugene, Oregon
Construction and Rental Housin Fund
g
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits3,598,5293,889,83003,889,830
Charges for services4,362,5543,996,773(577,290)3,419,483
Fines and forfeits41,10313,734013,734
Miscellaneous281,15042,9064,09447,000
Total revenues8,283,3367,943,243(573,196)7,370,047
Expenditures
Current - departmental:
Central services00820,000820,000
Fire and emergency medical services303,275289,9480289,948
Planning and development6,532,0355,589,03205,589,032
Public works440,639411,8010411,801
Special payments865,000642,290(642,290)0
Total expenditures8,140,9496,933,071177,7107,110,781
Excess (deficiency) of
revenues over expenditures142,3871,010,172(750,906)259,266
Other financing sources (uses)
Transfers out(820,000)(820,000)820,0000
Total other financing sources (uses)(820,000)(820,000)820,0000
Net change in fund balance(677,613)190,17269,094259,266
Fund balance, July 1, 20155,697,7145,697,7142,0385,699,752
Fund balance, June 30, 20165,020,1015,887,88671,1325,959,018
89
C-4
City of Eugene, Oregon
Librar, Parks, and Recreation Fund
y
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental032,268032,268
Rental income16,92037,658037,658
Charges for services43,00035,591035,591
Miscellaneous505,308950,1343,235953,369
Total revenues565,2281,055,6513,2351,058,886
Expenditures
Current - departmental:
Library, recreation, and cultural services617,000349,1640349,164
Planning and development0016,00016,000
Capital outlay1,037,143109,1370109,137
Special payments162,00016,000(16,000)0
Total expenditures1,816,143474,3010474,301
Excess (deficiency) of
revenues over expenditures(1,250,915)581,3503,235584,585
Other financing sources (uses)
Principal payments received60,000000
Total other financing sources (uses)60,000000
Net change in fund balance(1,190,915)581,3503,235584,585
Fund balance, July 1, 20154,115,3374,115,3371,5094,116,846
Fund balance, June 30, 20162,924,4224,696,6874,7444,701,431
90
C-5
City of Eugene, Oregon
Public Safet Communications Fund
y
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental809,571892,1640892,164
Charges for services2,155,4951,741,08601,741,086
Miscellaneous4,5907,41307,413
Total revenues2,969,6562,640,66302,640,663
Expenditures
Current - departmental:
Central services00197,000197,000
Police2,782,6942,430,88902,430,889
Total expenditures2,782,6942,430,889197,0002,627,889
Excess (deficiency) of
revenues over expenditures186,962209,774(197,000)12,774
Other financing sources (uses)
Transfers out(197,000)(197,000)197,0000
Total other financing sources (uses)(197,000)(197,000)197,0000
Net change in fund balance(10,038)12,774012,774
Fund balance, July 1, 20151,721,5731,721,57301,721,573
Fund balance, June 30, 20161,711,5351,734,34701,734,347
91
C-6
City of Eugene, Oregon
Road Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits1,796,5001,888,57101,888,571
Intergovernmental9,342,42310,014,318010,014,318
Rental income55,00075,441075,441
Charges for services76,000184,7950184,795
Miscellaneous182,500172,8541,187174,041
Total revenues11,452,42312,335,9791,18712,337,166
Expenditures
Current - departmental:
Central services00728,000728,000
Public works13,549,48512,461,833(187,096)12,274,737
Total expenditures13,549,48512,461,833540,90413,002,737
Excess (deficiency) of
revenues over expenditures(2,097,062)(125,854)(539,717)(665,571)
Other financing sources (uses)
Transfers out(863,000)(863,000)728,000(135,000)
Total other financing sources (uses)(863,000)(863,000)728,000(135,000)
Net change in fund balance(2,960,062)(988,854)188,283(800,571)
Fund balance, July 1, 20154,336,8164,336,816957,1925,294,008
Fund balance, June 30, 20161,376,7543,347,9621,145,4754,493,437
92
C-7
City of Eugene, Oregon
Solid Waste and Recclin Fund
yg
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits850,133878,3120878,312
Charges for services06460646
Miscellaneous5,0006,8485337,381
Total revenues855,133885,806533886,339
Expenditures
Current - departmental:
Central services0074,00074,000
Planning and development798,340706,91525,000731,915
Total expenditures798,340706,91599,000805,915
Excess (deficiency) of
revenues over expenditures56,793178,891(98,467)80,424
Other financing sources (uses)
Transfers out(74,000)(74,000)74,0000
Total other financing sources (uses)(74,000)(74,000)74,0000
Net change in fund balance(17,207)104,891(24,467)80,424
Fund balance, July 1, 2015600,895600,89525,249626,144
Fund balance, June 30, 2016583,688705,786782706,568
93
C-8
City of Eugene, Oregon
Secial Assessment Manaement Fund
pg
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Charges for services45,38043,682043,682
Special assessments009,1389,138
Miscellaneous49,67116,56877117,339
Total revenues95,05160,2509,90970,159
Expenditures
Current - departmental:
Central services130,75887,1687,00094,168
Special payments30,000000
Total expenditures160,75887,1687,00094,168
Excess (deficiency) of
revenues over expenditures(65,707)(26,918)2,909(24,009)
Other financing sources (uses)
Principal payments received4,9009,138(9,138)0
Transfers in30,000000
Transfers out(7,000)(7,000)7,0000
Total other financing sources (uses)27,9002,138(2,138)0
Net change in fund balance(37,807)(24,780)771(24,009)
Fund balance, July 1, 20151,249,3621,249,3624561,249,818
Fund balance, June 30, 20161,211,5551,224,5821,2271,225,809
94
C-9
City of Eugene, Oregon
Telecom Reistration and Licensin Fund
gg
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits2,950,0002,590,69302,590,693
Miscellaneous32,00032,7833,00135,784
Total revenues2,982,0002,623,4763,0012,626,477
Expenditures
Current - departmental:
Central services3,958,9081,797,75637,8411,835,597
Capital outlay169,850000
Total expenditures4,128,7581,797,75637,8411,835,597
Excess (deficiency) of
revenues over expenditures(1,146,758)825,720(34,840)790,880
Other financing sources (uses)
Transfers out(1,493,000)(1,493,000)43,000(1,450,000)
Total other financing sources (uses)(1,493,000)(1,493,000)43,000(1,450,000)
Net change in fund balance(2,639,758)(667,280)8,160(659,120)
Fund balance, July 1, 20156,074,3526,074,35224,5896,098,941
Fund balance, June 30, 20163,434,5945,407,07232,7495,439,821
95
C-10
City of Eugene, Oregon
Urban Renewal Aenc General Fund
gy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Repayment of revolving loans00261,811261,811
Miscellaneous55,00062,6071,33463,941
Total revenues55,00062,607263,145325,752
Expenditures
Current - departmental:
Planning and development134,654133,7960133,796
Special payments2,093,598000
Total expenditures2,228,252133,7960133,796
Excess (deficiency) of
revenues over expenditures(2,173,252)(71,189)263,145191,956
Other financing sources (uses)
Principal payments received450,000261,811(261,811)0
Transfers in126,000126,0000126,000
Total other financing sources (uses)576,000387,811(261,811)126,000
Net change in fund balance(1,597,252)316,6221,334317,956
Fund balance, July 1, 20151,619,6941,619,6945831,620,277
Fund balance, June 30, 201622,4421,936,3161,9171,938,233
96
C-11
City of Eugene, Oregon
Urban Renewal Aenc Riverfront Fund
gy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Taxes1,415,5001,529,74201,529,742
Rental income63,00066,150066,150
Miscellaneous40,10055,9823,72359,705
Total revenues1,518,6001,651,8743,7231,655,597
Expenditures
Current - departmental:
Planning and development333,360194,3720194,372
Total expenditures333,360194,3720194,372
Excess (deficiency) of
revenues over expenditures1,185,2401,457,5023,7231,461,225
Other financing sources (uses)
Transfers out(2,990,000)(2,990,000)0(2,990,000)
Total other financing sources (uses)(2,990,000)(2,990,000)0(2,990,000)
Net change in fund balance(1,804,760)(1,532,498)3,723(1,528,775)
Fund balance, July 1, 20158,283,3838,283,3833,0158,286,398
Fund balance, June 30, 20166,478,6236,750,8856,7386,757,623
97
C-12
City of Eugene, Oregon
Urban Renewal Aenc Riverfront Proram Revenue Fund
gyg
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Miscellaneous5,0001,9182,9884,906
Total revenues5,0001,9182,9884,906
Expenditures
Special payments1,000,000000
Total expenditures1,000,000000
Excess (deficiency) of
revenues over expenditures(995,000)1,9182,9884,906
Other financing sources (uses)
Transfers in2,990,0002,990,00002,990,000
Total other financing sources (uses)2,990,0002,990,00002,990,000
Net change in fund balance1,995,0002,991,9182,9882,994,906
Fund balance, July 1, 20150000
Fund balance, June 30, 20161,995,0002,991,9182,9882,994,906
98
DEBT SERVICE FUNDS
Combining statements for all individual nonmajor debt service funds are reported here. The combined totals are
reported in the combining nonmajor governmental fund statements at B-1 and B-2. Fund statements for major debt
service funds are reported in Exhibits 3 and 4 of the basic financial statements.
Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented here for
each individual debt service fund.
Major Debt Service Funds:
General Obligation Debt Service Fund - To account for the accumulation of resources for, and the payment of,
general obligation indebtedness of the City, excluding debt accounted for as proprietary fund or special
assessment debt. The debt service is financed through property taxes and interest income.
Debt Service Funds
Nonmajor Debt Service Funds:
Special Assessment Bond Debt Service Fund - To account for special assessment receivables and the
servicing of the related bonded debt. The debt service is financed through special assessment principal and
interest collections and interest income.
Urban Renewal Agency Debt Service Fund - To account for the accumulation of tax increment resources and
payment of Tax Increment Bonds.
D-1
City of Eugene, Oregon
Combinin Balance Sheet
g
Nonmajor Debt Service Funds
June 30, 2016
(amounts in dollars)
SpecialUrban
AssessmentRenewal
BondAgencyTotal
Assets
Equity in pooled cash and investments73,0611,053,3661,126,427
Receivables:
Interest036,94936,949
Taxes0154,847154,847
Assessments200,5260200,526
Due from other governments06,2566,256
Assets held for resale1,54101,541
Total assets275,1281,251,4181,526,546
Total liabilities000
Deferred inflows of resources
Unavailable revenue201,764191,796393,560
Total deferred inflows of resources201,764191,796393,560
Fund balances
Nonspendable1,54101,541
Restricted71,8231,059,6221,131,445
Total fund balances73,3641,059,6221,132,986
Total liabilities, deferred inflows
of resources, and fund balances275,1281,251,4181,526,546
99
D-2
City of Eugene, Oregon
Combinin Statement of Revenues, Exenditures,
gp
and Chanes in Fund Balances
g
Nonmajor Debt Service Funds
For the fiscal year ended June 30, 2016
(amounts in dollars)
SpecialUrban
AssessmentRenewal
BondAgencyTotal
Revenues
Taxes02,040,6142,040,614
Special assessments71,269071,269
Miscellaneous15,98836,96752,955
Total revenues87,2572,077,5812,164,838
Expenditures
Debt service:
Principal77,0662,078,0002,155,066
Interest19,010171,600190,610
Total expenditures96,0762,249,6002,345,676
Excess (deficiency) of
revenues over expenditures(8,819)(172,019)(180,838)
Other financing sources (uses)
Transfers out(353,535)(126,000)(479,535)
Total other financing sources (uses)(353,535)(126,000)(479,535)
Net change in fund balances(362,354)(298,019)(660,373)
Fund balances, July 1, 2015435,7181,357,6411,793,359
Fund balances, June 30, 201673,3641,059,6221,132,986
100
D-3
City of Eugene, Oregon
General Obliation Debt Service Fund
g
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Taxes14,268,15914,507,420014,507,420
Miscellaneous12,00030,68918430,873
Total revenues14,280,15914,538,10918414,538,293
Expenditures
Debt service14,635,01123,532,715023,532,715
Total expenditures14,635,01123,532,715023,532,715
Excess (deficiency) of
revenues over expenditures(354,852)(8,994,606)184(8,994,422)
Other financing sources (uses)
Proceeds of refunding bonds issuance08,929,91808,929,918
Total other financing sources (uses)08,929,91808,929,918
Net change in fund balance(354,852)(64,688)184(64,504)
Fund balance, July 1, 2015354,852354,85297354,949
Fund balance, June 30, 20160290,164281290,445
101
D-4
City of Eugene, Oregon
Secial Assessment Bond Debt Service Fund
p
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Special assessments0071,26971,269
Miscellaneous49,50016,071(83)15,988
Total revenues49,50016,07171,18687,257
Expenditures
Debt service380,92196,076096,076
Total expenditures380,92196,076096,076
Excess (deficiency) of
revenues over expenditures(331,421)(80,005)71,186(8,819)
Other financing sources (uses)
Principal payments received320,90071,269(71,269)0
Transfers out(363,535)(353,535)0(353,535)
Total other financing sources (uses)(42,635)(282,266)(71,269)(353,535)
Net change in fund balance(374,056)(362,271)(83)(362,354)
Fund balance, July 1, 2015435,562435,562156435,718
Fund balance, June 30, 201661,50673,2917373,364
102
D-5
City of Eugene, Oregon
Urban Renewal Aenc Debt Service Fund
gy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Taxes1,985,0002,040,61402,040,614
Miscellaneous11,00036,40656136,967
Total revenues1,996,0002,077,0205612,077,581
Expenditures
Debt service2,253,0002,249,60002,249,600
Total expenditures2,253,0002,249,60002,249,600
Excess (deficiency) of
revenues over expenditures(257,000)(172,580)561(172,019)
Other financing sources (uses)
Transfers out(126,000)(126,000)0(126,000)
Total other financing sources (uses)(126,000)(126,000)0(126,000)
Net change in fund balance(383,000)(298,580)561(298,019)
Fund balance, July 1, 20151,357,1511,357,1514901,357,641
Fund balance, June 30, 2016974,1511,058,5711,0511,059,622
103
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104
CAPITAL PROJECTS FUNDS
Combining statements for all individual nonmajor capital projects funds are reported here. The combined totals are
reported in the combining nonmajor governmental fund statements at B-1 and B-2. Fund statements for major capital
projects funds are reported in Exhibits 3 and 4 of the basic financial statements.
Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented here for
each individual capital projects fund.
Major Capital Projects Funds:
General Capital Projects Fund - To account for the financing and construction of capital facilities not financed
by proprietary or other capital projects funds. General Fund revenues, Federal and State grants, donations, and
bond proceeds provide the financing for the expenditures of this fund.
Systems Development Capital Projects Fund - To account for construction of the non-assessable portion of
capacity-enhancing capital projects. Financing is provided by a systems development charge levied against
developing properties. Expenditures are restricted by state law to capacity-enhancing projects for the following
systems: transportation, sanitary sewers, storm sewers, and parks facilities.
Nonmajor Capital Projects Funds:
Special Assessment Capital Projects Fund - To account for the interim financing and related costs of
construction for public improvements which primarily benefit the property owners against whose properties
special assessments are levied. Construction-period financing is obtained through issuance of bond
anticipation notes, and the debt service thereon is financed through special assessment collections, proceeds
of long-term bonded debt, and interest on investments.
Capital Projects Funds
Transportation Capital Projects Fund - To account for revenues from dedicated sources and related
nondevelopment transportation capital project expenditures. Revenues are generated primarily from a $0.05
per gallon local motor vehicle fuel tax, transportation grants, and the 2008 Street Bond.
Urban Renewal Agency Capital Projects Fund - To account for costs of constructing and improving capital
facilities in the Downtown District. Financing is provided by transfers from the Urban Renewal Agency Fund and
interest on investments.
Urban Renewal Agency Riverfront Capital Projects Fund - To account for costs of constructing and improving
capital facilities in the Riverfront District. Financing is provided by transfers from the Urban Renewal Agency
Riverfront Fund and interest on investments.
E-1
City of Eugene, Oregon
Combinin Balance Sheet
g
Nonmajor Capital Projects Funds
June 30, 2016
(amounts in dollars)
Urban
UrbanRenewal
SpecialRenewalAgency
AssessmentTransportationAgencyRiverfrontTotal
Assets
Equity in pooled cash and investments2,221,5925,582,035540,129686,5689,030,324
Receivables:
Assessments66,32000066,320
Due from other governments0718,64500718,645
Assets held for resale26500990,000990,265
Total assets2,288,1776,300,680540,1291,676,56810,805,554
Liabilities
Accounts payable0551,234013,071564,305
Due to other governments046,2550046,255
Deposits1,092,1330001,092,133
Unearned revenue0197,31100197,311
Total liabilities1,092,133794,800013,0711,900,004
Deferred inflows of resources
Unavailable revenue66,58600066,586
Total deferred inflows of resources66,58600066,586
Fund balances
Nonspendable26500990,000990,265
Restricted05,505,880540,129673,4976,719,506
Committed1,129,1930001,129,193
Total fund balances1,129,4585,505,880540,1291,663,4978,838,964
Total liabilities, deferred inflows
of resources, and fund balances2,288,1776,300,680540,1291,676,56810,805,554
105
E-2
City of Eugene, Oregon
Combinin Statement of Revenues, Exenditures,
gp
and Chanes in Fund Balances
g
Nonmajor Capital Projects Funds
For the fiscal year ended June 30, 2016
(amounts in dollars)
Urban
UrbanRenewal
SpecialRenewalAgency
AssessmentTransportationAgencyRiverfrontTotal
Revenues
Taxes03,050,845003,050,845
Intergovernmental01,079,702001,079,702
Rental income039,7070039,707
Charges for services103,816140,59200244,408
Special assessments22,76300022,763
Miscellaneous13,70531,5043,6695,23054,108
Total revenues140,2844,342,3503,6695,2304,491,533
Expenditures
Current - departmental:
Planning and development00860,1600860,160
Debt service:
Issuance costs05,680005,680
Capital outlay010,008,2500200,68110,208,931
Total expenditures010,013,930860,160200,68111,074,771
Excess (deficiency) of
revenues over expenditures140,284(5,671,580)(856,491)(195,451)(6,583,238)
Other financing sources (uses)
Proceeds of debt issuance06,879,700006,879,700
Transfers in030,0000030,000
Transfers out(610,291)000(610,291)
Total other financing sources (uses)(610,291)6,909,700006,299,409
Net change in fund balances(470,007)1,238,120(856,491)(195,451)(283,829)
Fund balances, July 1, 20151,599,4654,267,7601,396,6201,858,9489,122,793
Fund balances, June 30, 20161,129,4585,505,880540,1291,663,4978,838,964
106
E-3
City of Eugene, Oregon
General Caital Proects Fund
pj
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Rental income15,00022,501022,501
Miscellaneous1,665,000122,11111,784133,895
Total revenues1,680,000144,61211,784156,396
Expenditures
Current - departmental:
Library, recreation, and cultural services20,0004,30804,308
Debt service50,00022,375022,375
Capital outlay30,079,7418,572,39108,572,391
Total expenditures30,149,7418,599,07408,599,074
Excess (deficiency) of
revenues over expenditures(28,469,741)(8,454,462)11,784(8,442,678)
Other financing sources (uses)
Proceeds of debt issuance7,635,8634,403,27804,403,278
Transfers in4,409,3004,409,300234,409,323
Total other financing sources (uses)12,045,1638,812,578238,812,601
Net change in fund balance(16,424,578)358,11611,807369,923
Fund balance, July 1, 201517,138,12817,138,1286,33017,144,458
Fund balance, June 30, 2016713,55017,496,24418,13717,514,381
107
E-4
City of Eugene, Oregon
Secial Assessment Caital Proects Fund
ppj
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Charges for services0103,8160103,816
Special assessments0022,76322,763
Miscellaneous11,60012,4671,23813,705
Total revenues11,600116,28324,001140,284
Total expenditures0000
Excess (deficiency) of
revenues over expenditures11,600116,28324,001140,284
Other financing sources (uses)
Principal payments received11,90022,763(22,763)0
Transfers out(630,291)(610,291)0(610,291)
Total other financing sources (uses)(618,391)(587,528)(22,763)(610,291)
Net change in fund balance(606,791)(471,245)1,238(470,007)
Fund balance, July 1, 20151,598,4871,598,4879781,599,465
Fund balance, June 30, 2016991,6961,127,2422,2161,129,458
108
E-5
City of Eugene, Oregon
Sstems Develoment Caital Proects Fund
yppj
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental02,50002,500
Rental income138,840163,5030163,503
Charges for services4,004,0835,793,6445,1245,798,768
Miscellaneous73,172190,00016,074206,074
Total revenues4,216,0956,149,64721,1986,170,845
Expenditures
Current - departmental:
Central services0039,00039,000
Planning and development114,03599,537099,537
Public works396,243232,2380232,238
Capital outlay9,397,8472,780,93302,780,933
Total expenditures9,908,1253,112,70839,0003,151,708
Excess (deficiency) of
revenues over expenditures(5,692,030)3,036,939(17,802)3,019,137
Other financing sources (uses)
Principal payments received05,124(5,124)0
Transfers out(39,000)(39,000)39,0000
Total other financing sources (uses)(39,000)(33,876)33,8760
Net change in fund balance(5,731,030)3,003,06316,0743,019,137
Fund balance, July 1, 201520,877,15220,877,1527,64720,884,799
Fund balance, June 30, 201615,146,12223,880,21523,72123,903,936
109
E-6
City of Eugene, Oregon
Transortation Caital Proects Fund
ppj
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Taxes2,880,0003,050,84503,050,845
Intergovernmental5,502,5331,079,70201,079,702
Rental income039,707039,707
Charges for services57,200140,5920140,592
Miscellaneous10,00027,6353,86931,504
Total revenues8,449,7334,338,4813,8694,342,350
Expenditures
Debt service10,0005,68005,680
Capital outlay21,466,49710,008,250010,008,250
Total expenditures21,476,49710,013,930010,013,930
Excess (deficiency) of
revenues over expenditures(13,026,764)(5,675,449)3,869(5,671,580)
Other financing sources (uses)
Proceeds of debt issuance10,808,6206,879,70006,879,700
Transfers in30,00030,000030,000
Total other financing sources (uses)10,838,6206,909,70006,909,700
Net change in fund balance(2,188,144)1,234,2513,8691,238,120
Fund balance, July 1, 20154,266,0604,266,0601,7004,267,760
Fund balance, June 30, 20162,077,9165,500,3115,5695,505,880
110
E-7
City of Eugene, Oregon
Urban Renewal Aenc Caital Proects Fund
gypj
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Miscellaneous3,0003,3263433,669
Total revenues3,0003,3263433,669
Expenditures
Current - departmental:
Planning and development00860,160860,160
Capital outlay515,972000
Total expenditures515,9720860,160860,160
Excess (deficiency) of
revenues over expenditures(512,972)3,326(859,817)(856,491)
Total other financing sources (uses)0000
Net change in fund balance(512,972)3,326(859,817)(856,491)
Fund balance, July 1, 2015536,264536,264860,3561,396,620
Fund balance, June 30, 201623,292539,590539540,129
111
E-8
City of Eugene, Oregon
Urban Renewal Aenc Riverfront Caital Proects Fund
gypj
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Miscellaneous4,0004,8613695,230
Total revenues4,0004,8613695,230
Expenditures
Capital outlay472,886200,6810200,681
Total expenditures472,886200,6810200,681
Excess (deficiency) of
revenues over expenditures(468,886)(195,820)369(195,451)
Total other financing sources (uses)0000
Net change in fund balance(468,886)(195,820)369(195,451)
Fund balance, July 1, 2015868,632868,632990,3161,858,948
Fund balance, June 30, 2016399,746672,812990,6851,663,497
112
ENTERPRISE FUNDS
All of the City’s enterprise funds meet the criteria for major fund reporting and are reported in Exhibits 6, 7, and 8 of
the basic financial statements.
Schedules of revenues, expenses, and changes in fund net position - budget and actual are presented here for each
individual enterprise fund.
Major Enterprise Funds:
Ambulance Transport Fund - To account for the operations of emergency medical services provided to the
public. Revenues are provided by user charges.
Municipal Airport Fund - To account for the operations of the municipal airport. Principal sources of revenues
are rental of terminal space to airlines and other service providers, landing fees, and parking fees. The fund
receives Airport Improvement Program monies from the Federal Aviation Administration for capital
improvements. The fund also imposes passenger facility charges on passengers utilizing the airport, the
proceeds of which are restricted for use in financing eligible projects, as determined by regulation.
Parking Services Fund - To account for operations of City-owned parking facilities. Revenue sources include
parking fees and fines, meter receipts, and rentals. The revenue is used to operate and maintain the parking
facilities.
Stormwater Utility Fund - To account for the operation, construction, and maintenance of the stormwater
drainage system and the wetland resource protection and enhancement program. Primary revenues are
stormwater user fees and the sale of wetland mitigation credits.
Wastewater Utility Fund - To account for the operation, construction, and maintenance of the wastewater
collection and treatment system. Primary revenues are wastewater user fees.
Enterprise Funds
F-1
City of Eugene, Oregon
Ambulance Transort Fund
p
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Charges for services7,414,4948,094,30108,094,301
Miscellaneous75,758171,979(66)171,913
Total revenues7,490,2528,266,280(66)8,266,214
Expenses
Current - departmental:
Central services00552,000552,000
Fire and emergency medical services7,435,1847,435,1672,108,9349,544,101
Debt service00138,647138,647
Depreciation0053,15953,159
Total expenses7,435,1847,435,1672,852,74010,287,907
Excess (deficiency) of
revenues over expenses55,068831,113(2,852,806)(2,021,693)
Other financing sources (uses)
Transfers out(932,390)(932,390)552,000(380,390)
Total other financing sources (uses)(932,390)(932,390)552,000(380,390)
Change in net position(877,322)(101,277)(2,300,806)(2,402,083)
Total net position, July 1, 20151,298,7731,298,773(2,068,045)(769,272)
Total net position, June 30, 2016421,4511,197,496(4,368,851)(3,171,355)
113
F-2
City of Eugene, Oregon
Municial Airort Fund
pp
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental9,880,0596,739,428(6,739,428)0
Rental income1,146,6901,061,26701,061,267
Charges for services8,197,2568,981,76108,981,761
Fines and forfeits6,5001,54901,549
Miscellaneous10,000162,191(3,220)158,971
Total revenues19,240,50516,946,196(6,742,648)10,203,548
Expenses
Current - departmental:
Central services00520,000520,000
Fire and emergency medical services848,932830,289310,6041,140,893
Police551,207551,207203,058754,265
Public works7,649,9236,649,9951,157,0037,806,998
Debt service00124,839124,839
Capital outlay17,016,35111,893,449(11,893,449)0
Depreciation004,764,1004,764,100
Loss on sale of capital asset00118,985118,985
Total expenses26,066,41319,924,940(4,694,860)15,230,080
Excess (deficiency) of
revenues over expenses(6,825,908)(2,978,744)(2,047,788)(5,026,532)
Other financing sources (uses)
Capital contributions006,747,8926,747,892
Transfers out(520,000)(520,000)502,928(17,072)
Total other financing sources (uses)(520,000)(520,000)7,250,8206,730,820
Change in net position(7,345,908)(3,498,744)5,203,0321,704,288
Total net position, July 1, 201515,634,19315,634,19377,796,86193,431,054
Total net position, June 30, 20168,288,28512,135,44982,999,89395,135,342
114
F-3
City of Eugene, Oregon
Parkin Services Fund
g
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Rental income513,400540,672(1,067)539,605
Charges for services4,262,7804,645,82204,645,822
Fines and forfeits1,340,6001,473,17901,473,179
Miscellaneous8,00012,8221,40214,224
Total revenues6,124,7806,672,4953356,672,830
Expenses
Current - departmental:
Central services428,331394,324303,556697,880
Planning and development4,200,2803,729,652243,3303,972,982
Public works90,23776,4019,50785,908
Capital outlay84,801000
Debt service0031,29531,295
Depreciation00800,746800,746
Total expenses4,803,6494,200,3771,388,4345,588,811
Excess (deficiency) of
revenues over expenses1,321,1312,472,118(1,388,099)1,084,019
Other financing sources (uses)
Transfers out(1,502,755)(1,502,755)252,000(1,250,755)
Total other financing sources (uses)(1,502,755)(1,502,755)252,000(1,250,755)
Change in net position(181,624)969,363(1,136,099)(166,736)
Total net position, July 1, 2015961,552961,55214,839,34215,800,894
Total net position, June 30, 2016779,9281,930,91513,703,24315,634,158
115
F-4
City of Eugene, Oregon
Stormwater Utilit Fund
y
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits108,500116,4200116,420
Intergovernmental1,177,996179,568(53,623)125,945
Rental income4,00033,321033,321
Charges for services16,872,88216,881,430(150,350)16,731,080
Fines and forfeits04800480
Miscellaneous28,00041,85347,98289,835
Total revenues18,191,37817,253,072(155,991)17,097,081
Expenses
Current - departmental:
Central services00951,000951,000
Public works14,427,45113,291,3062,794,84416,086,150
Capital outlay6,678,2112,070,440(2,070,440)0
Debt service00177,951177,951
Depreciation001,933,0361,933,036
Special payments15,000350(350)0
Total expenses21,120,66215,362,0963,786,04119,148,137
Excess (deficiency) of
revenues over expenses(2,929,284)1,890,976(3,942,032)(2,051,056)
Other financing sources (uses)
Capital contributions00607,058607,058
Transfers out(1,086,000)(1,086,000)951,000(135,000)
Total other financing sources (uses)(1,086,000)(1,086,000)1,558,058472,058
Change in net position(4,015,284)804,976(2,383,974)(1,578,998)
Total net position, July 1, 20156,152,2206,152,22056,354,44262,506,662
Total net position, June 30, 20162,136,9366,957,19653,970,46860,927,664
116
F-5
City of Eugene, Oregon
Wastewater Utilit Fund
y
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental015,982015,982
Rental income023,139023,139
Charges for services55,494,94148,844,875(24,689,715)24,155,160
Fines and forfeits5,0005,72505,725
Miscellaneous30,00081,3642,54683,910
Total revenues55,529,94148,971,085(24,687,169)24,283,916
Expenses
Current - departmental:
Central services001,385,0001,385,000
Public works25,658,16520,662,9013,767,66124,430,562
Capital outlay4,874,2272,494,629(2,494,629)0
Debt service00297,496297,496
Depreciation004,033,4574,033,457
Special payments26,644,90024,689,715(24,689,715)0
Total expenses57,177,29247,847,245(17,700,730)30,146,515
Excess (deficiency) of
revenues over expenses(1,647,351)1,123,840(6,986,439)(5,862,599)
Other financing sources (uses)
Capital contributions00480,807480,807
Transfers in0044,20444,204
Transfers out(1,520,000)(1,520,000)1,385,000(135,000)
Total other financing sources (uses)(1,520,000)(1,520,000)1,910,011390,011
Change in net position(3,167,351)(396,160)(5,076,428)(5,472,588)
Total net position, July 1, 20154,430,4194,430,41984,192,70688,623,125
Total net position, June 30, 20161,263,0684,034,25979,116,27883,150,537
117
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118
INTERNAL SERVICE FUNDS
Combining statements for all internal service funds are reported here. The combined totals are reported alongside the
individual enterprise funds in Exhibits 6, 7, and 8 of the basic financial statements.
Schedules of revenues, expenses, and changes in fund net position - budget and actual are also presented here for
each individual internal service fund.
Nonmajor Internal Service Funds:
Facilities Services Fund - To account for facility maintenance services on City buildings. Facility maintenance
rates and rental rates are charged on the basis of square footage and are set to recover the full cost of services
provided.
Fleet Services Fund - To account for the purchase of vehicles and equipment and the maintenance thereon.
Fleet user charges cover vehicle and equipment maintenance expenses as well as the replacement of vehicles
and equipment sold or removed from use.
Information Systems and Services Fund - To account for data processing and reproduction, equipment
acquisition and maintenance, postage, telephone, and printing/graphic services provided to other City funds.
The fund also accounts for the implementation and maintenance of public safety information systems and
central business software applications. User charges cover the cost of operations and supplies.
Professional Services Fund - To account for engineering services performed by public works personnel for
other City funds. Revenues are provided by charges for these services.
Risk and Benefits Fund - To account for costs of the City’s self-insurance program. The City is self-insured for
workers’ compensation, unemployment compensation, general liability, and employee medical and dental
insurance. An actuarial valuation is the basis for recording the claims liability. User charges are based on actual
experience or an estimate, depending on the nature of the insurance. This fund also accounts for the
accumulation of resources for and payment of the City's pension bonds and other post employment benefits.
Internal Service Funds
City of Eugene, OregonG-1
Combining Statement of Net Position
All Internal Service Funds
June 30, 2016
(amounts in dollars)Information
FacilitiesFleetSystems andProfessionalRisk and
AssetsServicesServicesServicesServicesBenefitsTotal
Current assets
Equity in pooled cash and investments4,097,51820,490,83310,221,9363,798,26931,351,97269,960,528
Receivables:
Accounts2,0455,255025,39519,22351,918
Allowance for uncollectibles0(5,256)0(479)(2,744)(8,479)
Due from other governments9,8329,609134,915211,46624,668390,490
Inventories0521,117000521,117
Prepaids and deposits17,64232,894728,82115,107320,6051,115,069
Total current assets4,127,03721,054,45211,085,6724,049,75831,713,72472,030,643
Noncurrent assets
Capital assets:
Land0455,834000455,834
Improvements other than buildings051,91300051,913
Buildings and equipment4,162,91047,674,9731,381,511315,4367,99553,542,825
Construction in progress564,2340000564,234
Accumulated depreciation(1,775,661)(30,669,923)(1,162,600)(225,528)(3,998)(33,837,710)
Total noncurrent assets2,951,48317,512,797218,91189,9083,99720,777,096
Deferred outflows of resources
Related to pensions431,889270,717245,856509,824204,7191,663,005
Total deferred outflows of resources431,889270,717245,856509,824204,7191,663,005
Total assets and deferred outflows of resources7,510,40938,837,96611,550,4394,649,49031,922,44094,470,744
Liabilities
Current liabilities
Accounts payable120,621152,535106,33195,46786,218561,172
Wages payable189,210119,970122,469242,097131,367805,113
Compensated absences payable232,004155,141114,754260,57896,893859,370
Due to other governments171,29119,83410,04250,15320,250271,570
Claims payable000012,566,53412,566,534
Deposits2,92500081,87084,795
Interest payable8,4163,9053,1307,05527,38549,891
Unearned revenue68,755000068,755
Certificates of participation payable190,0000000190,000
Bonds payable24,56914,48611,58726,159103,414180,215
Total current liabilities1,007,791465,871368,313681,50913,113,93115,637,415
Noncurrent liabilities
Compensated absences payable13,420016,171073,897103,488
Certificates of participation payable200,0000000200,000
Bonds payable (net of unamortized discount/premium)1,366,839805,921644,6231,455,3355,753,37210,026,090
Net pension liability1,720,9031,078,702979,6412,031,448815,7266,626,420
Net OPEB obligation00002,055,6052,055,605
Total noncurrent liabilities3,301,1621,884,6231,640,4353,486,7838,698,60019,011,603
Deferred inflows of resources
Related to pensions450,277282,244256,324531,531213,4361,733,812
Total deferred inflows of resources450,277282,244256,324531,531213,4361,733,812
Total liabilities and deferred inflows of resources4,759,2302,632,7382,265,0724,699,82322,025,96736,382,830
Net position
Net investment in capital assets2,561,48317,512,797218,91189,9083,99720,387,096
Unrestricted189,69618,692,4319,066,456(140,241)9,892,47637,700,818
Total net position2,751,17936,205,2289,285,367(50,333)9,896,47358,087,914
119
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120
City of Eugene, OregonG-2
Combinin Statement of Revenues, Exenses,
gp
ges in Fund Net Position
and Chan
All Internal Service Funds
For the fiscal year ended June 30, 2016
(amounts in dollars)
Information
FacilitiesFleetSystems andProfessionalRisk and
ServicesServicesServicesServicesBenefitsTotal
Operating revenues
Rental income606,48831,510000637,998
Charges for services9,166,2299,318,5716,930,0325,904,64934,215,10065,534,581
Miscellaneous6,698134,2921,49310103,366245,859
Total operating revenues9,779,4159,484,3736,931,5255,904,65934,318,46666,418,438
Operating expenses
Personnel services3,906,7742,433,1162,138,9184,408,2071,518,11714,405,132
Contractual services681,690580,514825,486251,884614,4272,954,001
Materials and supplies735,7571,606,6001,418,759218,638143,7634,123,517
Maintenance688,402624,761293,294314,22478,1611,998,842
Utilities2,359,21582,282465,22632,71914,9392,954,381
Rent18,2700110,317157,211123,544409,342
Taxes3940000394
Insurance72,168479,70922,59128,6292,334,9482,938,045
Claims000026,147,50726,147,507
Central business functions433,000356,000299,000530,000129,0001,747,000
Depreciation107,3533,447,002116,42148,7965333,720,105
Pension expense1,629,9491,064,1741,012,0592,007,619908,7726,622,573
Total operating expenses10,632,97210,674,1586,702,0717,997,92732,013,71168,020,839
Operating income (loss)(853,557)(1,189,785)229,454(2,093,268)2,304,755(1,602,401)
Nonoperating revenues (expenses)
Interest revenue30,062134,59866,23026,837213,451471,178
Interest expense(132,378)(60,148)(48,118)(108,640)(421,452)(770,736)
Gain (loss) on sale of capital assets0115,3539,06300124,416
Intergovernmental0000147,463147,463
Total nonoperating revenues (expenses)(102,316)189,80327,175(81,803)(60,538)(27,679)
Income (loss) before capital
contributions and transfers(955,873)(999,982)256,629(2,175,071)2,244,217(1,630,080)
Capital contributions061,09637,2280098,324
Transfers in01,433,4201,969,427003,402,847
Transfers out(8,612)(50,939)0(140,601)(21,024)(221,176)
Change in net position(964,485)443,5952,263,284(2,315,672)2,223,1931,649,915
Total net position, July 1, 20153,715,66435,761,6337,022,0832,265,3397,673,28056,437,999
Total net position, June 30, 20162,751,17936,205,2289,285,367(50,333)9,896,47358,087,914
121
Total
(31,700)
(4,055,414)(2,727,087)(2,627,971)(589,102)(28,886,437)(38,886,011)(3,282,121)(2,138,174)(1,955,042)(3,940,951)(2,338,779)(13,655,067)(1,422,023)(1,451,839)(1,588,712)(1,166,603)(400,340)(6,029,517)(4
33,000)(356,000)(299,000)(530,000)(129,000)(1,747,000)(8,612)00(135,000)(21,024)(164,636)Principal payments on pension bonds(66,536)(40,618)(33,403)(74,083)(184,667)(399,307)Interest
payments on pension bonds(79,320)(46,793)(37,470)(84,545)(328,493)(576,621)(180,000)Acquisition and construction of capital assets(134,695)(1,923,828)(15,106)(5,601)0(2,079,230)Net
cash provided by (used for) capital and related financing activities(346,395)(1,710,109)0(5,601)0(2,062,105)
G-3
continued
346,2815,552,4385,907,6724,599,10817,496,518030,080,48649,574,958669,631(318,984)2,925,0386,753,88101,380,0001,963,826003,343,826147,463147,463(154,468)1,292,5891,892,953(293,628)(386,721)2,350,725Pr
oceeds from sale of capital assets0213,71915,10600228,825471,178471,178134,7652,589,7082,628,814(591,376)2,751,7687,513,6793,962,75317,901,1257,593,1224,389,64528,600,20462,446,8494,097,51820,490,833
10,221,9363,798,26931,351,97269,960,528
Benefits
FacilitiesFleetSystems andProfessionalRisk and
00000000213,451213,451
Services
000026,83726,837
Services
Information
8,707,1059,199,4491,587,91866,23066,230
Services
605,5662,872,630134,598134,598
(180,000)(31,700)
Services
1,091,01930,06230,062
(amounts in dollars)
Net cash provided by (used for) noncapital financing activities
Combining Statement of Cash Flows
Cash flows from capital and related financing activities
Principal payments on notes, bonds, and certificates
Interest payments on notes, bonds, and certificates
Net cash provided by (used for) operating activities
Net cash provided by (used for) investing activities
Cash received from interfund services provided
Cash flows from noncapital financing activities
Cash paid to suppliers for goods and services
Cash paid for central business functions
For the fiscal year ended June 30, 2016
Cash paid for interfund services used
Cash paid to employees for services
Cash flows from operating activities
Cash flows from investing activities
Net increase (decrease) in cash
Cash received from customers
All Internal Service Funds
City of Eugene, Oregon
Cash, June 30, 2016
Subsidy from grant
Cash, July 1, 2015
Interest revenue
Transfers out
Transfers in
122
Total
Operating income (loss)(853,557)(1,189,785)229,454(2,093,268)2,304,755(1,602,401)(2,128)(297)(24,537)(737,783)(58,856)(128,647)(85,661)(95,604)(178,987)(90,079)(578,978)(1,050,790)(633,795)(487,433)(
1,106,137)(354,040)(3,632,195)(94,118)(994,519)(994,519)
G-3, continued
5333,720,105449,283221,472360,1922,830,437815,7266,626,420126,13959,062393,9464,43810,69012,867669,631(318,984)2,925,0386,753,881
Benefits
FacilitiesFleetSystems andProfessionalRisk and
340,044018,691061,28423,83446,744393,9462,39320,0710
(1,918)(89,623)(3,986)
Services
48,79694,5540840,586979,6412,031,44882,37039,16818,3100000000000
(32,894)(681,977)(1,177)(3,505)(24,851)(10,399)
Services
Information
116,42100208,8310403,49833,22700
(58,856)8,147(244,742)(948)
Services
Depreciation 107,3533,447,0021,794093,405483,0201,720,9031,078,7027,375011,518605,5662,872,630
(210)(9,832)(6,514)
Services
12,8911,9220743,14122,53522,3642,04513,815
(Increase) Decrease in deferred outflows related to pensions
Increase (Decrease) in deferred inflows related to pensions
Increase (Decrease) in compensated absences payable
Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities
(Increase) Decrease in due from other governments
Increase (Decrease) in allowance for uncollectibles
Net cash provided by (used for) operating activities
Increase (Decrease) in due to other governments
cash provided by (used for) operating activities
Reconciliation of operating income (loss) to net
(Increase) Decrease in prepaids and deposits
(Increase) Decrease in accounts receivable
Increase (Decrease) in net OPEB obligation
Increase (Decrease) in net pension liability
(Increase) Decrease in net pension assetIncrease (Decrease) in unearned revenue
Increase (Decrease) in accounts payable
Increase (Decrease) in wages payable
Increase (Decrease) in claims payable
(Increase) Decrease in inventories
Increase (Decrease) in deposits
123
G-4
City of Eugene, Oregon
Facilities Services Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Rental income510,205629,243(22,755)606,488
Charges for services9,442,8989,166,22909,166,229
Miscellaneous6,00034,1162,64436,760
Total revenues9,959,1039,829,588(20,111)9,809,477
Expenses
Current - departmental:
Central services9,283,7088,665,9801,558,45010,224,430
Planning and development343,206249,52051,669301,189
Debt service211,700211,700(79,322)132,378
Capital outlay448,874157,367(157,367)0
Depreciation00107,353107,353
Total expenses10,287,4889,284,5671,480,78310,765,350
Excess (deficiency) of
revenues over expenses(328,385)545,021(1,500,894)(955,873)
Other financing sources (uses)
Transfers out(433,000)(433,000)424,388(8,612)
Total other financing sources (uses)(433,000)(433,000)424,388(8,612)
Change in net position(761,385)112,021(1,076,506)(964,485)
Total net position, July 1, 20153,509,2633,509,263206,4013,715,664
Total net position, June 30, 20162,747,8783,621,284(870,105)2,751,179
124
G-5
City of Eugene, Oregon
Fleet Services Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Rental income25,00031,510031,510
Charges for services9,552,7029,317,6239489,318,571
Miscellaneous322,000468,684(199,793)268,891
Total revenues9,899,7029,817,817(198,845)9,618,972
Expenses
Current - departmental:
Central services00356,000356,000
Public works11,703,9358,135,384(1,264,227)6,871,157
Debt service0060,14860,148
Depreciation003,447,0023,447,002
Total expenses11,703,9358,135,3842,598,92310,734,307
Excess (deficiency) of
revenues over expenses(1,804,233)1,682,433(2,797,768)(1,115,335)
Other financing sources (uses)
Capital contributions0061,09661,096
Gain on sale of capital assets00115,353115,353
Transfers in1,380,0001,380,00053,4201,433,420
Transfers out(356,000)(356,000)305,061(50,939)
Total other financing sources (uses)1,024,0001,024,000534,9301,558,930
Change in net position(780,233)2,706,433(2,262,838)443,595
Total net position, July 1, 201517,481,22717,481,22718,280,40635,761,633
Total net position, June 30, 201616,700,99420,187,66016,017,56836,205,228
125
G-6
City of Eugene, Oregon
Information Sstems and Services Fund
y
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Charges for services7,374,2486,930,03206,930,032
Miscellaneous29,60060,28916,49776,786
Total revenues7,403,8486,990,32116,4977,006,818
Expenses
Current - departmental:
Central services13,973,1466,264,249321,4016,585,650
Debt service0048,11848,118
Depreciation00116,421116,421
Total expenses13,973,1466,264,249485,9406,750,189
Excess (deficiency) of
revenues over expenses(6,569,298)726,072(469,443)256,629
Other financing sources (uses)
Capital contributions0037,22837,228
Transfers in1,963,8261,963,8265,6011,969,427
Transfers out(299,000)(299,000)299,0000
Total other financing sources (uses)1,664,8261,664,826341,8292,006,655
Change in net position(4,904,472)2,390,898(127,614)2,263,284
Total net position, July 1, 20157,716,9127,716,912(694,829)7,022,083
Total net position, June 30, 20162,812,44010,107,810(822,443)9,285,367
126
G-7
City of Eugene, Oregon
Professional Services Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits500000
Charges for services5,996,0665,904,64905,904,649
Miscellaneous80024,6562,19126,847
Total revenues5,997,3665,929,3052,1915,931,496
Expenses
Current - departmental:
Central services00530,000530,000
Public works6,177,0495,978,4361,440,6957,419,131
Debt service00108,640108,640
Depreciation0048,79648,796
Total expenses6,177,0495,978,4362,128,1318,106,567
Excess (deficiency) of
revenues over expenses(179,683)(49,131)(2,125,940)(2,175,071)
Other financing sources (uses)
Transfers out(665,000)(665,000)524,399(140,601)
Total other financing sources (uses)(665,000)(665,000)524,399(140,601)
Change in net position(844,683)(714,131)(1,601,541)(2,315,672)
Total net position, July 1, 20154,357,2764,357,276(2,091,937)2,265,339
Total net position, June 30, 20163,512,5933,643,145(3,693,478)(50,333)
127
G-8
City of Eugene, Oregon
Risk and Benefits Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Position - Budget and Actual
For the fiscal year ended June 30, 2016
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental229,275295,781(148,318)147,463
Charges for services39,754,38539,822,736(5,607,636)34,215,100
Miscellaneous111,3971,012,478(695,660)316,818
Total revenues40,095,05741,130,995(6,451,614)34,679,381
Expenses
Current - departmental:
Central services35,313,13133,078,812(1,065,633)32,013,179
Debt service6,069,4006,069,373(5,647,921)421,452
Depreciation00533533
Total expenses41,382,53139,148,185(6,713,021)32,435,164
Excess (deficiency) of
revenues over expenses(1,287,474)1,982,810261,4072,244,217
Other financing sources (uses)
Transfers out(129,000)(129,000)107,976(21,024)
Total other financing sources (uses)(129,000)(129,000)107,976(21,024)
Change in net position(1,416,474)1,853,810369,3832,223,193
Total net position, July 1, 201512,867,79212,867,792(5,194,512)7,673,280
Total net position, June 30, 201611,451,31814,721,602(4,825,129)9,896,473
128
Other Supplementary Schedules
OTHER SUPPLEMENTARY SCHEDULES
(this page intentionally left blank)
129
0(6,572,806)
H-1Unmatured
continued
05,450,0000401,4000141,124010,125,00001,229,3630808,196050,000018,207,2680185,000013,6750205,000019,2200422,895049,428,280029,893,5340216,9650160,608073,126,581
0000002,1850000
June 30, 2016
Outstanding
Matured
000000000
0(1,510,820)(1,510,820)
Redeemed
013,10013,100018,60018,6000211,700211,700
0330,0002,390,0000117,276117,27602,785,0007,145,0000318,900318,900018,23418,23401,295,0001,295,0000183,275183,275060,63960,63901,300,0002,400,0003,650,0003,650,00001,07527,04625,93625,93601,410,3006,
879,7008,290,0008,290,00002,12325,77027,89327,893020,234,34621,495,07517,102,15323,522,153085,00085,000095,00095,00002,254,9772,254,97704,168,0824,168,082026,48926,489050,57750,577018,03318,03305,008
,3155,008,315
000977
Fiscal Year 2015-2016
Matured
000977
Incurred
010,125,00001,229,3630808,196
0
0(8,083,626)
Unmatured
02,390,0000117,27607,145,0000318,900018,23406,745,0000584,6750201,7630270,000026,7750300,000037,8200634,595051,683,257034,061,616026,4890267,5420178,641078,134,896
977
June 30, 2015
Outstanding
Matured
0000
AmountinterestIssueMaturityissued/(13,653,848)
authorized
676,913939,1084,016,021
2.500 to5/1/046/1/236,305,0002,610,314General Obligation Refunding Bonds, Series 20063.500 to3/9/063/1/1924,990,0007,556,255244,744General Obligation Refunding Bonds, Series 20112.000
to12/1/116/1/2210,975,0001,418,138489,606General Obligation and Refunding Bonds, Series 20162.000%6/28/166/1/2610,125,0001,229,363808,1960.750%5/13/076/1/173,000,000G.O. Bond and Revolving
Credit Facility (Street 2012)1.040%5/6/146/1/175,000,00074,751,6163.700 to6/1/986/1/181,200,0006.125 to6/1/986/1/181,200,0002.000 to3/15/026/1/2869,613,28185,352,4175.100%6/13/066/1/161,036,427526,8
187.050%6/28/1112/1/26580,000633,795144,088,891
00
date
date
Schedule of Bonded Debt Transactions
rates
Issued
4.650%4.125%3.000%5.000%4.900%6.200%7.410%
G.O. Bond and Revolving Credit Facility (POS)
Atrium Obligations Series 1998A (tax-exempt)
Limited Tax Improvement Bonds, Series 2006Limited Tax Improvement Bonds, Series 2011
Parks and Open Spaces Bonds, Series 2004
Atrium Obligations Series 1998B (taxable)
Limited Tax Pension Bonds, Series 2002
Subtotal certificates of participation
Subtotal general obligation bonds
For the fiscal year ended June 30, 2016
Subtotal limited tax bonds
Certificates of participation
Governmental Activities
General obligation bonds
City of Eugene, Oregon
(amounts in dollars)
Limited tax bonds
Discount
PremiumPremiumPremium
InterestInterestInterestInterestInterestInterestInterestInterestInterestInterestInterest
130
0(1,386,510)
H-1, continuedUnmatured
01,222,000079,04001,301,040093,057,784031,799,025093,057,784010,426,72006,305,935015,346,145015,346,14511,834,22209,220,4190180,209180,20909,040,21006,305,935015,346,145070,298,969038,104,9600108,403
,929
129,813,407066,973,95920,212,89618,308,09625,928,096061,258,759
IssuedAmountJune 30, 2015Fiscal Year 2015-2016June 30, 2016
OutstandingOutstanding
Matured
0102,554,477 21,495,07523,371,76830,991,768
01,077,5771,077,577
0(319,814)(319,814)
Redeemed
0878,0002,078,0000171,600171,60001,049,6002,249,6000102,554,47721,495,07523,371,76830,991,768035,580,5181,282,1795,063,6725,063,6720500,023500,0230897,368897,36801,077,5771,077,57701,077,5771,077,577
0897,368897,368076,194,37820,212,89618,488,30526,108,305042,783,8211,282,1795,961,0405,961,0400118,978,19921,495,07524,449,34532,069,345
Matured
Incurred
016,423,722
0(1,706,324)
Unmatured
03,300,0000250,64003,550,640010,926,74307,203,303016,423,722016,423,72207,203,303
Matured
interestIssueMaturityissued/(2,887,496)
authorized
2,185,43918,050,209
5.200%5/25/116/1/207,900,00010,085,439232,941,967103,128,560232,941,9672.000 to3/15/026/1/2814,721,71918,050,20929,884,43129,884,43129,884,431141,647,629121,178,769262,826,398
date
date
rates
7.410%
Total bonded debt - business-type activitiesTotal bonded debt - business-type activities
Total bonded debt - governmental activities
Total bonded debt - governmental activities
Limited Tax Pension Bonds, Series 2002
URA Tax Increment Bonds, Series 2011
Bonded debt - business-type activities
Bonded debt - governmental activities
Governmental Activities, continued
Subtotal tax increment bonds
Subtotal limited tax bonds
Business-type Activities
Total bonded debt
Tax increment bonds
Total bonded debt
Limited tax bonds
PrincipalDiscountPrincipalPrincipal
InterestInterestInterestInterestInterest
131
(this page intentionally left blank)
132
STATISTICAL SECTION
This part of the City of Eugene’s comprehensive annual financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the City’s overall financial health.
Financial Trends (Schedules I-1 to I-4)
These schedules contain trend information to help the reader understand how the City's financial performance
and well-being have changed over time.
Revenue Capacity (Schedules I-5 to 1-8)
These schedules contain information to help the reader assess the factors affecting the City's ability to generate
property taxes.
Statistical Section
Debt Capacity (Schedules I-9 to I-12)
These schedules present information to help the reader assess the affordability of the City's current level of
outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information (Schedules I-13 - I-14)
These schedules offer demographic and economic indicators to help the reader understand the environment
within which the City's financial activities take place and to help make comparisons over time and with other
governments.
Operating Information (Schedules I-15 to I-17)
These schedules contain information about the City's operation and resources to help the reader understand
how the City's financial information relates to the services the City provides and the activities it performs.
29,141,07725,321,14820,076,99223,942,08024,982,46626,709,24325,999,49226,792,9016,889,547(2,857,325)
I-1
201614,789,7923,346,9266,337,1018,033,19411,148,77114,035,83516,307,1509,721,6196,387,3345,195,9765,722,1206,413,5778,760,18910,443,92811,392,9427,783,4675,228,62893,170,97692,606,21986,891,87181,804
,40592,174,86691,155,59985,756,72082,279,86743,818,48925,577,165470,656,988483,278,659485,927,114506,489,274521,636,495534,755,983543,821,193568,840,787534,542,475519,116,4460000014,789,7923,346,9266
,337,1018,033,19411,148,77114,035,83516,307,1509,721,6196,387,3345,195,9765,722,1206,413,5778,760,18910,443,92811,392,9427,783,4675,228,628122,312,053117,927,367106,968,863105,746,485117,157,332117,8
64,842111,756,212109,072,76850,708,03622,719,840729,542,801747,451,413747,713,333778,637,836799,786,007817,063,268824,413,173850,878,648798,590,450775,050,841
317,131,090337,614,504345,073,199368,493,364371,712,593384,208,529388,294,288405,556,459412,174,294410,543,20924,818,16318,685,91917,115,70116,733,12424,756,65618,408,75025,451,93336,297,93739,587,71
446,145,9521,698,1341,479,458815,3602,128,5032,971,9152,666,7632,405,3911,997,3552,260,4581,895,99911,072,27212,345,46715,559,28516,817,96620,259,96223,219,05223,435,73920,167,45614,882,21813,418,343
223,163,869229,495,712232,335,631239,045,916241,534,490243,029,332240,442,993242,024,310245,767,377251,116,5794,919,0417,819,5087,222,6098,435,24211,625,34512,568,71014,149,49513,220,65011,391,0517,6
75,141258,885,813264,172,754261,786,219272,148,562278,149,512282,307,285280,591,980282,037,861264,047,975255,934,395540,294,959567,110,216577,408,830607,539,280613,247,083627,237,861628,737,281647,58
0,769657,941,671661,659,78829,737,20426,505,42724,338,31025,168,36636,382,00130,977,46039,601,42849,518,58750,978,76553,821,0933,359,9603,015,8442,966,3472,853,8272,979,1262,666,7632,405,3911,997,355
2,260,4581,895,99911,072,27212,345,46715,559,28516,817,96620,259,96223,219,05223,435,73920,167,45614,882,21813,418,343
2015
2014
2013
c) Implementation of GASB 68 resulted in reductions in unrestricted net position for the governmental and business-type activities of $79,941,438, $30,222,499, respectively.
2012
20117,211
b) Significant fluctuations between the current year and the prior year are discussed in the Management's Discussion and Analysis.
20101,661,8261,536,3862,150,987725,324
200915,275,72215,275,722
The adjustment is reflected in FY15 net position. The prior year was not adjusted for the change.
200814,159,75814,159,758
a) This schedule was modified with the implementation of GASB 63, effective FY13.
200713,044,73413,044,734
Net Position by Component
Total business-type activities net position
Total governmental activities net position
Last ten fiscal years - unaudited
City of Eugene Finance Division
Net investment in capital assetsNet investment in capital assetsNet investment in capital assets
Total government net position
City of Eugene, Oregon
Community development Community development
(amounts in dollars)
Governmental activitiesBusiness-type activities
Total government
Capital projects Other purposes Capital projects Capital projects Other purposes
Urban renewal Urban renewal
Restricted for:Restricted for:Restricted for:
Debt service Debt service Debt service
UnrestrictedUnrestrictedUnrestrictedData source
Notes
133
I-2
continued
201614,074,7048,705,5589,217,7258,377,7669,759,9109,804,90911,010,49910,101,68710,016,69110,746,89825,625,31527,597,15527,345,00626,737,25927,260,06328,641,93829,471,66228,734,32323,051,78144,127,222
28,318,25327,418,61329,681,41228,956,89429,249,22328,820,95827,912,19427,979,57926,307,84537,520,10520,368,62621,760,06520,978,97719,833,16132,208,70419,651,54316,992,12519,855,39214,945,56121,803,20
844,649,82246,876,02148,533,01744,801,36747,645,36552,725,18554,150,12353,536,87744,175,82976,487,55226,796,67329,077,49329,139,23528,550,51129,775,68030,285,86631,360,92132,665,52830,287,28940,292,5
107,296,1316,635,9666,654,8876,415,9846,280,1586,650,8626,227,4735,627,4654,463,0264,480,488167,129,524168,070,871171,550,259163,672,942182,179,103176,581,261177,124,997178,500,851153,248,022235,457,
9835,570,8685,971,2826,773,2495,737,0995,669,2046,950,2636,500,1806,858,0385,666,14110,306,4709,506,4969,910,11410,261,59810,404,01811,031,43411,969,22712,333,38412,760,26311,511,96215,208,0104,194,5
494,249,5634,756,5554,567,1105,517,1074,554,2594,388,6944,614,6944,257,5805,618,06110,533,69611,272,13211,578,52912,318,84813,084,70213,301,12913,930,19914,487,10413,458,68919,264,80020,164,58319,969
,12223,474,99620,588,11521,351,24722,359,07923,534,29922,731,89721,333,42830,201,56949,970,19251,372,21356,844,92753,615,19056,653,69459,133,95760,686,75661,451,99656,227,80080,598,910217,099,716219,
443,084228,395,186217,288,132238,832,797235,715,218237,811,753239,952,847209,475,822316,056,8935,541,0105,522,7885,966,8916,611,7407,865,2087,414,1028,435,7437,751,4398,016,9867,779,9102,200,7402,183
,6262,212,1042,195,1102,243,1252,323,1032,427,3512,626,1932,728,1932,609,8535,523,2216,043,1825,713,7835,522,5636,175,9735,636,0535,481,9095,888,5795,973,0607,257,4493,630,9563,600,4894,061,2843,639,
6653,886,1604,975,3045,295,5085,130,4694,533,3774,767,8877,693,2066,701,1524,111,9954,025,0127,159,7407,518,3997,525,40010,110,84011,195,0727,752,21817,572,72418,105,37912,404,85713,996,24217,235,076
15,253,88814,212,70014,615,55813,914,47414,585,69614,581,5327,820,03610,628,4468,668,9698,623,6322,933,6784,054,90510,806,2492,647,3141,844,02265,873,94258,799,12156,292,36753,039,12868,454,46158,122
,16356,540,42067,006,72259,884,62456,285,7736,208,0076,198,1836,077,4146,846,1647,305,0576,858,7446,503,4336,662,7387,798,1198,263,0927,146,3527,930,5886,982,7607,454,4237,955,7028,068,9538,463,8329,
045,6549,440,67610,124,7994,509,4094,686,2224,320,2014,463,6245,058,0115,333,9655,155,5335,479,2246,644,1116,663,76510,988,54211,903,19311,849,47112,631,67212,752,16514,620,58914,905,91415,074,35116,
943,26016,936,26117,408,38017,844,42020,542,15319,220,46220,116,03121,317,60321,991,86621,595,51622,461,79824,241,89188,815370,304563,211141,92711,140,1979,286,5213,977,22914,113,7345,927,8627,232,48
63,724,1626,610,0496,693,0127,764,29058,426,18058,854,35653,749,22864,877,18159,410,38763,483,26060,833,55564,837,83670,544,18774,136,025124,300,122117,653,477110,041,595117,916,309127,864,848121,605
,423117,373,975131,844,558130,428,811130,421,798
9,130,5538,822,46911,193,0078,379,82715,265,54712,067,6369,106,90410,077,39510,876,1489,688,738
2015
2014
2013
201250,920
Fiscal Year
20110147,102295,559
2010
2009
20081,025,2931,005,229
2007
Total business-type activities program revenues
Total governmental activities program revenues
Library, recreation, and cultural services
Total business-type activities expenses
Total governmental activities expenses
Library, recreation, and cultural services
Fire and emergency medical services
Total government program revenues
Changes in Net Position
Fees, fines, and charges for services:Fees, fines, and charges for services:
Fire and emergency medical services
Last ten fiscal years - unaudited
Operating grants and contributionsOperating grants and contributions
Capital grants and contributionsCapital grants and contributions
Total government expenses
Planning and development
Planning and development
Interest on long term debt
City of Eugene, Oregon
Ambulance transport
Governmental activities:Business-type activities:Governmental activities:Business-type activities:
(amounts in dollars)
Ambulance transport
Wastewater utility
Stormwater utility
Municipal airport
Parking services
Central services
Wastewater utility
Stormwater utility
Municipal airport
Parking services
Central services
Program revenues
Public works
Public works
Police
Expenses
Police
134
(101,255,582)(109,271,750)(115,257,892)(110,633,814)(113,724,642)(118,459,098)(120,584,577)(111,494,129)(93,363,398)(179,172,210)(92,799,594)(101,789,607)(118,353,591)(99,371,823)(110,967,949)(114,10
9,795)(120,437,778)(108,108,289)(79,047,011)(185,635,095)1,295,320(3,230,406)(20,346)(1,191,787)3,046,158(353,430)(1,946,076)(2,070,154)(2,202,900)(1,802,546)20,935,84112,621,6712,648,45520,562,16015
,147,22113,119,4889,891,21025,019,59445,643,126(15,426,029)10,919,8435,286,941(2,386,535)10,362,3436,000,9504,157,773(1,715,305)1,445,88112,232,613(8,113,580)31,855,68417,908,612261,92030,924,50321,1
48,17117,277,2618,175,90526,465,47557,875,739(23,539,609)
8,455,9887,482,143(3,095,699)11,261,9912,756,6934,349,303146,7993,385,84014,316,387(6,462,885)2,463,855(2,195,202)709,164(899,648)3,244,257(191,530)(1,862,104)(1,939,959)(2,083,774)(1,650,695)
I-2 continued
201688,531,79183,958,97886,465,15099,297,84597,962,59297,837,71299,321,973102,009,251106,096,214110,728,7011,668,9401,772,9681,678,5661,518,0301,658,1691,686,4581,747,2801,898,4642,162,7512,463,2063,
359,5363,083,6052,976,1073,138,2963,118,8823,045,1922,908,4912,868,7682,996,9583,050,84511,913,37911,446,53713,263,98212,342,95813,762,18113,469,82111,762,15012,158,53712,204,26312,674,7828,389,1568,
870,2859,029,3498,653,03610,954,41710,393,7368,467,98410,757,8798,482,82727,751,459Grants and contributions not restricted to specific programs2,926,0843,308,742752,6023,230,9283,291,0023,573,0733,77
8,2643,938,3014,095,1714,153,9286,697,8576,221,9003,720,2451,823,0941,170,7781,219,164543,569812,369765,4401,120,71420,3461,191,787(3,046,158)353,4301,946,0762,070,1542,202,9001,802,546122,191,423121
,893,421117,906,347131,195,974128,871,863131,578,586130,475,787136,513,723139,006,524163,746,18183,972130,195119,126151,851124,655,278119,698,219118,615,511130,296,326132,116,120131,387,056128,613,68
3134,573,764136,922,750162,095,486
2015
2014
2013
20121,168,5351,035,204729,510292,139198,099161,900
Fiscal Year
2011
2010
b) Significant fluctuations between the current year and the prior year are discussed in the Management's Discussion and Analysis.
2009
2008(1,295,320)3,230,406
a) This schedule was modified with the implementation of GASB 63, effective FY13.
2007
Total business-type activities general revenues
Total governmental activities general revenues
Franchise fees on telecom providers revenues
Total government net (expense) revenue
Total government change in net position
Total government general revenues
Unrestricted investment earningsUnrestricted investment earnings
City of Eugene Finance Division
General revenues and transfers
Contributions in lieu of taxes
Local motor vehicle fuel tax
Governmental activitiesBusiness-type activitiesGovernmental activitiesBusiness-type activities
Governmental activities:Business-type activities:
Change in net position:
Net (expense) revenue
Transient room tax
and transfersand transfersand transfers
Property taxes
TransfersTransfers
Data source
Notes
135
(this page intentionally left blank)
136
I-3
20160736,3861,066,4731,399,020762,321623,852837,243953,7740833,887914,8131,041,1851,058,0401,088,3311,107,0641,168,970032,211,82838,269,91037,320,28134,768,09034,633,37638,188,16436,263,40206,122,604
5,792,8703,330,3802,961,4056,622,503901,14319,803,94803,197,6892,636,3833,836,0642,915,1763,049,4322,935,1102,242,204034,464,27631,260,09535,767,35542,856,62648,547,77553,834,77460,042,34207,793,4491
1,257,25612,413,93412,315,05413,842,07514,293,99013,337,866010,766,08711,618,7635,506,1383,668,77515,373,63316,602,17315,174,737Total all other governmental funds65,648,68256,307,28251,715,19956,113,
15956,772,49757,523,49161,755,63180,812,91587,666,04790,797,149
0000000000000031,160,55430,446,62532,515,58739,904,70546,044,06643,090,86639,549,85642,968,06241,033,61458,190,09400000000000000000000000000000
2015
0
2014
0
2013
0
b) Significant fluctuations between the current year and the prior year are discussed in the Management's Discussion and Analysis.
2012
0
2011
0
0(108,342)
2010
a) This schedule was modified with the implementation of GASB54, effective FY10.
2009
371,847441,011405,65030,788,70730,005,61432,109,9374,149,2463,998,8043,331,08330,761,05725,938,46127,990,7067,023,3446,394,5155,790,00823,715,03519,975,50214,603,402
2008
000000000
Fund Balances - Governmental Funds
2007
000000000
Last ten fiscal years - unaudited
City of Eugene Finance Division
All other governmental funds:
Unreserved, reported in:
Special revenue funds
Capital projects funds
City of Eugene, Oregon
Debt service funds
(amounts in dollars)
Total General Fund
Nonspendable
Nonspendable
General Fund:
UnassignedUnassigned
Unreserved
Committed
RestrictedRestricted
Data source
Reserved
Reserved
AssignedAssigned
Notes
137
I-4
continued
2016
278,748314,334377,621355,002383,266432,660470,709473,986510,614550,688352,6481,254,187209,188498,3701,100,252269,691300,439157,176120,081103,170Fire and emergency medical services21,982,72723,449,090
22,667,96122,977,95523,507,36924,666,74825,551,46325,647,94926,273,05928,482,187Library, recreation, and cultural services24,958,86524,744,45724,428,69325,688,75525,598,69224,987,64723,870,44624,075,
47325,969,03027,244,948Planning and development18,556,67019,066,46818,266,73918,326,47322,134,99217,899,97215,544,06514,150,44215,749,25717,746,249Police41,962,14042,862,03741,877,71539,781,72942,544
,79546,724,92448,112,48547,648,19650,855,00152,467,719Public works14,292,72315,140,12616,387,65215,857,20715,162,75915,891,86416,785,20316,354,84316,674,30018,922,196Interest2,179,2072,013,1992,000,8
741,780,0681,571,1752,071,1301,501,8261,300,6971,091,065981,532000000Issuance costs28,2096,00632,25318,97550,696137,27611,14928,7288,788117,490Capital outlay20,346,93928,962,54824,501,53031,526,68623
,382,60828,481,71621,368,50823,323,36625,812,06021,814,65100000revenues over expenditures(3,988,885)(18,618,443)(11,613,799)(6,703,338)(8,982,725)(25,394,705)(7,518,111)3,021,497(5,005,044)1,382,344
105,364,63299,870,624103,745,938115,363,742116,480,716114,430,239115,143,898118,729,451123,057,049128,418,19112,421,90512,649,41912,124,14812,016,95116,247,80214,621,16814,070,57316,645,76715,451,256
33,340,12521,450,42820,321,50921,547,92721,246,57723,061,00919,783,96019,802,48718,349,22318,052,28518,785,20320,195,25319,603,59817,277,03616,546,58518,161,55223,333,48220,781,78726,586,56623,599,38
524,521,6663,498,6043,446,5353,110,5772,986,5862,929,4002,648,1012,287,4562,306,8862,429,3352,440,4461,075,3991,391,5531,725,9781,316,1581,419,9071,577,0231,359,7592,049,2124,374,9272,315,2697,499,14
16,395,8314,812,0463,754,4414,081,9892,643,7893,990,0283,171,7886,134,6033,187,847172,136,758165,247,590164,930,459174,084,412183,865,893179,740,113178,207,136188,470,055193,729,535213,662,60520,122,
49720,357,83518,713,10717,159,62618,188,80219,693,78819,091,90617,493,53919,626,85119,368,223Principal5,290,0837,172,6077,660,8347,655,20612,167,80124,579,75313,888,19614,925,32516,439,01725,135,066I
ntergovernmental6,397,45189,847008,000,00000500,000236,1510Total expenditures176,125,643183,866,033176,544,258180,787,750192,848,618205,134,818185,725,247185,448,558198,734,579212,280,261
2015
2014
2013
2012
2011
538,929
2010
Arbitrage fee8,1321,8136,90015,070
0000
2009
Changes in Fund Balances - Governmental Funds
2008
2007
Last ten fiscal years - unaudited
Contribution of land held for resale
Repayment of revolving loans
City of Eugene, Oregon
(amounts in dollars)
Excess (deficiency) of
Licenses and permits
Special assessments
Charges for services
Intergovernmental
Fines and forfeits
Central services
Total revenues
Rental incomeMiscellaneous
Debt service:
Expenditures
Revenues
Taxes
138
(10,795,454)(11,206,554)(12,782,991)(22,225,797)(17,659,327)(10,253,301)(8,536,559)(9,075,836)(8,521,365)(10,944,126)
I-4, continued
20160000000Total other financing sources (uses)1,470,0917,138,1149,090,67818,490,41615,781,42422,332,3398,869,24119,453,9939,923,72818,905,238
05,200,0004,345,000500,00017,765,0008,540,0009,495,00010,580,0008,700,00011,282,978000008,929,91812,265,54513,144,66814,816,53940,216,21312,263,75110,804,0347,910,80017,949,8299,745,0939,636,468(2,51
8,794)(11,480,329)(2,523,121)11,787,0786,798,699(3,062,366)1,351,13022,475,4904,918,68420,287,5824.82%5.94%6.38%6.34%8.16%15.16%9.37%10.03%10.14%13.77%
2015
2014
0
2013
0
2012
03,412,0001,777,000011,464,606
2011
2010
0
0(5,593,800)
2009
02,705,93005,600,000
2008
2007
000
Proceeds of refunding bonds issuance
City of Eugene Finance Division
Other financing sources (uses)
Debt service as a percentage
of noncapital expenditures
Net change in fund balances
Refunded bonds redeemed
Proceeds of debt issuanceProceeds of note issuance
Transfers out
Data Source
Transfers in
139
Direct
tax
I-5
rate9.05200810,143,358,30322,088,733,093473,274,763506,349,01210,616,633,06622,595,082,1058.15200910,501,729,49622,922,483,398492,684,613525,746,55810,994,414,10923,448,229,9567.98201011,006,944,2022
2,077,562,997459,543,562483,196,07211,466,487,76422,560,759,0698.56201111,179,600,89920,845,219,878433,560,719444,689,56611,613,161,61821,289,909,4448.58201211,460,819,09220,777,602,912423,318,352430
,903,34011,884,137,44421,208,506,2528.29201311,726,917,29420,026,046,722417,128,883423,958,29912,144,046,17720,450,005,0218.27201412,094,523,63720,325,443,248407,291,102413,828,21012,501,814,73920,73
9,271,4588.28201512,617,178,32822,069,558,527412,660,052419,387,55113,029,838,38022,488,946,0788.26201613,249,156,56222,995,929,078436,321,744446,812,58213,685,478,30623,442,741,6608.25
a) Assessed value is reported net of exemptions and net of Urban Renewal excess (incremental) value, and is the value used to establish the tax levy for the fiscal year.
Taxable assessedReal marketTaxable assessedReal marketTaxable assessedReal market
10,105,025,45819,929,625,317
value
Real propertyPersonal propertyTotal
value
459,050,386517,488,878
value
b) Real property includes utilities and personal property includes manufactured structures.
value
Taxable Assessed Value and Actual Value of Property
9,645,975,07219,412,136,439
value
c) Total direct tax rate is per $1,000 of assessed value.
Lane County Department of Assessment and Taxation
value
Last ten fiscal years - unaudited
City of Eugene, Oregon
(amounts in dollars)
Data source
Fiscal year
Notes
2007
140
Total
I-6
19.2318.0517.9618.5418.4618.1817.9918.9918.9518.78
b) Overlapping rates are those of other local governments that apply to property owners within the City of Eugene who are located within the other local
Total
rate
directSchoolCommunityoverlapping
10.189.909.989.989.889.899.7210.7110.6910.53
college
0.840.820.860.840.850.870.850.850.850.81
City direct ratesOverlapping rates
districts
7.967.707.747.767.667.657.507.957.937.91
Tax Rates
County
1.391.381.381.381.371.371.371.911.911.81
a) Tax rates are for a representative tax code area (4-00) within the City.
Total
rate
0.369.050.558.150.587.981.188.561.208.581.148.291.128.271.118.281.098.261.088.25
Direct and Overlapping Property Tax Rates
Lane County Department of Assessment and Taxation
Debt service
(rate per $1,000 of assessed value)
Operating
8.687.607.407.387.387.157.157.177.177.17
Last ten fiscal years - unaudited
government's boundaries.
City of Eugene, Oregon
Data source
Fiscal year
Notes
20072008
20092010201120122013201420152016
141
I-7 levy
Taxes leviedTotalPercentagePercentageadjustments inPercentagePercentage for theadjustedof grossof adjustedsubsequentof adjustedof adjusted
2010102,340,449(3,052,244)99,288,20596,079,82693.9%96.8%2,744,49398,824,31999.5%463,8860.5%2011101,032,799(3,198,238)97,834,56195,139,97494.2%97.2%2,194,91997,334,89399.5%499,6680.5%201299,967,213(2,
358,226)97,608,98794,522,08394.6%96.8%2,526,88997,048,97299.4%560,0150.6%2013101,892,411(2,830,768)99,061,64395,995,98194.2%96.9%2,305,98498,301,96599.2%759,6780.8%2014104,883,335(2,967,388)101,915,9
4799,010,67894.4%97.1%1,736,747100,747,42598.9%1,168,5221.1%2015109,269,488(3,328,182)105,941,306103,161,66894.4%97.4%1,002,250104,163,91898.3%1,777,3881.7%2016114,746,177(3,558,988)111,187,189108,17
9,99494.3%97.3%0108,179,99497.3%3,007,1952.7%
fiscal year of the levyTotal collections to dateOutstanding taxes
Amount
levy
Amount
Collections/
years
a) The Lane County Department of Assessment and Taxation reports seven years of property tax collections.
levy
Collected within the
levy
Amount
levy
Lane County Department of Assessment and Taxation
Property Tax Levies and Collections
Adjustments
Last seven fiscal years - unaudited
fiscal year
City of Eugene, Oregon
(amounts in dollars)
Data source
Fiscal year
Notes
142
City of Eugene, Oregon
I-8
Ten Principal Property Taxpayers
Current year and nine years ago - unaudited
(amounts in dollars)
FY 2016FY2007
PercentagePercentage
Totalof totalTotalof total
TotalassessedassessedTotalassessedassessed
Taxpayertaxes paidvaluevaluetaxes paidvaluevalue
Comcast Corporation2,490,731132,618,3000.97% -
- -
Valley River Center LLC2,002,869117,328,7630.86%1,627,09484,629,8670.84%
Verizon Communications1,365,31381,747,0000.60%
-
CCC - Eugene LLC1,249,68966,539,3330.49%
Shepard Investment Group LLC1,189,13266,193,6810.48%
-
McKay Investment Company1,132,13562,751,5840.46%408,38421,877,4840.22%
Century Link (formerly QWEST)778,46946,331,0000.34%1,169,60470,996,9000.70%
Chase Village LLC727,08638,713,4940.28%570,44829,670,6690.29%
Northwest Natural Gas Company605,96236,115,5000.26%651,52139,323,3000.39%
Molecular Probes, Inc.598,09835,549,7290.26% -
- -
Hynix Semiconductor -
- -6,448,537614,685,6406.08%
PeaceHealth -496,41142,356,9170.42%
- -
Guard Publishing Company -523,58830,777,8730.30%
- -
-372,14519,907,1570.20%
Metropolitan Life Insurance Company - -
Kinder Morgan Energy Partner -359,93218,721,1000.19%
- -
Subtotal12,139,484683,888,3845.00%12,627,664972,946,9079.63%
All other taxpayers13,001,589,92295.00%9,132,078,55190.37%
Total taxpayers
13,685,478,306100.00%10,105,025,458100.00%
Notes
a) Total assessed value does not include exemptions.
b) Hynix Semiconductor is no longer in business. While most of the equipment was sold, Hynix continues to pay taxes on the
building and remaining equipment.
Data source
Lane County Department of Assessment and Taxation
City of Eugene Finance Division
143
I-9
of realDebt
per
capita
818771764700720702661620557505
Totalmarket
Percentagevalue
0841,554415,0005,770,982590,000121,559,1330.61%0118,518,4220.52%0118,095,5100.50%0109,899,3310.49%0113,679,1710.53%0110,154,0230.52%0104,684,1050.51%098,944,8530.48%089,461,1210.43%082,459,7880.35%
government
e) As part of the implementation of GASB 68 in FY15, the Limited Tax Pension Bond Debt was proportionately allocated to all Government and Business activities.
bonds
taxRevenue
Business-type activities
bonds
05,489,00605,166,85104,799,493010,475,301010,137,540
TaxNotes andGeneralLimited0000
bonds
taxincrementcontractsobligation
0000
a) Details regarding the City's outstanding debt can be found in the notes to basic financial statements.
c) Percentage of real market value was calculated using property value information from Schedule I-5.
payable
201132,930,4371,820,00064,910,7347,900,0006,118,000201229,430,4571,465,00064,180,5667,183,0007,895,000201326,225,1221,105,00063,157,9836,429,0007,767,000201423,549,830735,00061,886,0235,135,0007,639,
000201519,210,297570,00049,827,5233,300,0006,078,000
0513,83802,880,31802,706,000201616,574,320390,00048,267,9281,222,0005,868,000
bonds
d) Debt per capita was calculated using population data from Schedule I-13.
b) All debt is shown net of unamortized premiums and discounts.
Governmental activities
bonds
200739,445,6339,785,00064,710,964200840,299,1507,365,00064,851,428200940,315,4024,840,00064,892,939201035,500,6802,160,00064,733,158
GeneralCertificatesLimited
Lane County Department of Assessment and Taxation
Ratio of Outstanding Debt by Typ
e
of
participation
Last ten fiscal years - unaudited
bonds
obligation
City of Eugene, Oregon
(amounts in dollars)
Data source
Fiscal year
Notes
144
I-10
for principalNet general of real marketPer
capita
0.59%7860.51%7480.48%7260.46%6640.49%6630.47%6340.46%5970.43%5600.36%5050.32%457
Percentagevalue
bonded debt
64,910,7347,900,000107,561,171(2,979,126)104,582,04564,180,5667,183,000102,259,023(2,666,763)99,592,26063,157,9836,429,00096,917,105(2,405,391)94,511,71461,886,0235,135,00091,305,853(1,997,355)89,308
,49860,302,8243,300,00083,383,121(2,260,458)81,122,66358,405,4681,222,00076,591,788(1,895,999)74,695,789
0120,127,579(3,359,960)116,767,6190118,004,584(3,015,844)114,988,7400115,215,192(2,966,347)112,248,8450107,193,331(2,853,827)104,339,504
repayment
Funds available
Total
c) Percentage of real market value was calculated using property value information from Schedule I-5.
a) Details regarding the City's outstanding debt can be found in the notes to the financial statements.
increment
Taxbonds
General bonded debt outstanding
d) Debt per capita was calculated using population data from Schedule I-13.
Limited tax bonds
70,481,94670,340,43470,059,79069,532,651
b) All debt is shown net of unamortized premiums and discounts.
Ratio of General Bonded Debt Outstanding
obligationCertificates of
39,860,6339,785,00040,299,1507,365,00040,315,4024,840,00035,500,6802,160,00032,930,4371,820,00029,430,4571,465,00026,225,1221,105,000
participation735,000570,000390,000
Last ten fiscal years - unaudited
General
bonds
23,549,83019,210,29716,574,320
City of Eugene, Oregon
(amounts in dollars)
Fiscal year
Notes
2007
200820092010201120122013201420152016
145
City of Eugene, Oregon
I-11
Direct and Overlapping Governmental Activities Deb
t
As of June 30, 2016 - unaudited
(amounts in dollars)
PercentageCity's share
Debtapplicableof overlapping
Governmental unitoutstandingto the Citydebt
City of Eugene (direct debt)82,459,788100.00%82,459,788
Total direct debt82,459,788
Lane Community College128,020,00046.14%59,063,179
Lane County89,442,01146.85%41,902,777
Lane Education Service District6,790,00046.91%3,185,094
School District 4J296,638,11178.54%232,991,438
School District 19177,663,2420.00%0
School District 5254,506,16678.17%42,605,181
River Road Park & Recreation District270,0000.00%0
Total overlapping debt379,747,669
Total direct and overlapping debt462,207,457
Data source
Oregon State Treasury Debt Management Information System. The system collects data on new public entity debt
issuances. The data from the system is used to create overlapping debt reports.
City of Eugene Finance Division
146
(276,840)(136,909)458,350(619,761)(961,919)(552,614)(395,162)(76,235)(354,949)(290,445)
I-12
Debt limit (3% of real market value)597,888,760677,852,463703,446,899676,822,772638,697,283636,255,188613,500,151622,178,144674,668,382703,282,250
201619,929,625,31722,595,082,10523,448,229,95622,560,759,06921,289,909,44421,208,506,25220,450,005,02120,739,271,45822,488,946,07823,442,741,66039,660,00040,130,00040,176,20035,389,41432,844,16428,91
0,00025,820,00023,245,00018,990,30015,625,00039,383,16039,993,09140,634,55034,769,65331,882,24528,357,38625,424,83823,168,76518,635,35115,334,555558,505,600637,859,372662,812,349642,053,119606,815,03
8607,897,802588,075,313599,009,379656,033,031687,947,695
2%
2015
3%
2014
4%
c) In FY09, the General Obligation Debt Service Fund had a deficit balance due to borrowing $485,000 from a short term revolving credit facility for transportation capital projects.
a) Oregon Revised Statutes 287A.050 provides a debt limit on general obligation bonds of 3% of the real market value of all taxable property within the City's boundaries.
2013
4%
2012
4%
Fiscal Year
2011
5%
b) The legal debt margin is the difference between the debt limit and the City's net outstanding general obligation debt.
2010
5%
Legal Debt Margin - General Obligation Bonded Debt
2009
6%
2008
6%
2007
7%
Lane County Department of Assessment and Taxation
Last ten fiscal years - unaudited
Total debt applicable to the limit
Less: Amount reserved for
City of Eugene Finance Division
as a percentage of debt limit
City of Eugene, Oregon
General Obligation Bonds
Total debt applicable to limit
repayment of general
(amounts in dollars)
Debt applicable to limit:
obligation debt
Legal debt margin:
Real market value
Legal debt margin
Data source
Notes
147
City of Eugene, Oregon
I-13
Demographic and Economic Statistics
Last ten fiscal years - unaudited
City of EugeneLane County
Personal
UnemploymentincomePer capita
Fiscal yearPopulationratePopulation(thousands)income
2007148,5954.60%344,84411,272,79332,690
2008153,6905.70%348,17611,690,84833,577
2009154,62010.10%350,85011,385,41032,451
2010157,10010.80%351,85211,547,06532,818
2011157,8459.60%353,49112,047,02334,080
2012157,0109.10%354,48112,545,26935,391
2013158,3358.20%355,66112,724,47535,777
2014159,5806.70%358,33713,392,64737,374
2015160,7756.50%358,80513,409,97837,374
2016163,4004.70%362,15013,534,99437,374
Notes
a) Personal income information is not available for the City.
b) The 2015 and 2016 per capita income was not available and has been estimated to be the same as 2014.
c) The 2015 and 2016 personal income was not available and has been estimated by multiplying
population by per capita income.
d) Population is certified as of July 1 of each fiscal year by Portland State University Population Research Center.
e) Unemployment rates presented are annualized for the calendar year. The FY16 unemployment rate is as of
June, 2016 (the most recent information available).
Data source
City of Eugene Information:
Population: Portland State University’s Center for Population Research and Census
Unemployment rate: Bureau of Labor Statistics, U.S. Department of Labor
Lane County Information:
Bureau of Economic Analysis, U.S. Department of Commerce
Lane County Financial Services
148
City of Eugene, Oregon
I-14
Ten Principal Employers
Current year and nine years ago - unaudited
20162007
PercentagePercentage
of totalof total
EmployerEmployeesemploymentEmployeesemployment
PeaceHealth Medical Group5,5003.33%4,3002.50%
University of Oregon5,4793.31%3,6762.14%
US Government1,6691.01%--
State of Oregon1,6561.00%1,1000.64%
City of Eugene1,3940.84%1,4570.85%
Lane County1,3690.83%1,7861.04%
Springfield School District1,2420.75%--
Eugene School District 4J1,1980.72%1,4770.86%
Lane Community College9430.57%2,5311.47%
McKenzie-Willamette Medical Center8800.53%--
Hynix Semiconductor--1,1560.67%
Bethel School District 52--7040.41%
Datalogic Scanning--6000.35%
Total21,33012.90%18,78710.94%
Notes
a) There is no comprehensive source available to obtain this data. Therefore, prior year
information may not be consistent with current data.
b) Percent of employment is as of January 1st of each year.
Data source
Eugene Chamber of Commerce
Oregon Employment Department
Bureau of Labor Statistics
City of Eugene Finance Division
149
City of Eugene, Oregon
I-15
City Government Employees by Function/Program
Last ten fiscal years - unaudited
Function/Program
Library,
Fire andrecreation,
emergencyandPlanning
CentralmedicalculturalandPublic
servicesservicesservicesdevelopmentPoliceworksTotal
Fiscal year
20072392041951133034031,457
20082382011901123034071,451
20092302031901112964101,440
2010217204181983063981,404
2011210200180943003961,380
2012212199174933053951,378
2013201197166932993911,347
2014202202167862994071,363
2015204198167923004081,369
2016210198171983064111,394
Notes
a) Number of employees is provided per Full-Time Equivalent (FTE) for full-time and part-time regular employees
that are in an active status as of the last day of the fiscal year.
Data source
City of Eugene Finance Division
150
I-16201620,97521,98317,43415,51315,93615,54415,62515,48515,91015,36428,81028,07126,96326,27323,62322,07826,07621,71419,69717,56921,61820,06723,66021,00016,20016,80013,75015,00032,49333,73071,88368,15
359,00962,60556,37957,88544,61552,37465,43363,981Gallons of wastewater treated (in billions)13.913.910.813.114.713.611.411.711.412.5
2274,5986,8487,4646,2577,7788,6029,3728,8658,80910,0321,917,6431,918,6432,014,2172,014,2171,932,2611,919,6982,034,0582,034,0581,926,6761,926,67620,50921,72321,23320,13021,53921,18621,11122,25825,9332
6,6559431,5762,3932,2704,8164,9893,0421,267,1091,527,2391,542,1831,469,8601,380,9511,386,6011,213,5471,159,4251,074,5041,054,3132,582,1012,791,7372,909,9082,928,1432,859,7482,826,9982,801,6692,737,19
62,554,3202,597,267190,648217,322185,873174,275187,388144,102143,578136,941135,728176,244665,222655,883675,598795,407773,162625,520622,194616,129661,090641,87710,98010,4718,6349,6539,81210,2609,93410
,59411,48112,128264106,972104,552107,836102,426103,219109,097123,099127,782125,867126,7706,0395,5816,8646,0094,8575,2825,3375,2095,2514,5152,7852,6982,6402,5202,4193,7693,8453,6183,5913,419Number
of municipal airport passengers724,662773,213659,641724,855789,620806,541840,048891,936907,810938,895
2015
237265
a) The number of risk claims managed is based on the number of general and automobile liability cases and the number of workers' compensation claims managed during the year.
h) The U.S. median city crime index for FY16 changed to the National Incident-Based Reporting System (NIBRS) crime indices from the Uniform Crime Reporting (UCR) index.
2014
266233
2013259205
f) Parking permits issued for monthly permits increased from FY15 to FY16 and parking citations decreased due to changes in staff availability.
2012
269208
Fiscal Year
d) Recreation services include participants in the City's recreational programs and patron visits to the City's recreational facilities.
2011
296139
g) The Eugene crime index is based on the number of offenses, reported on a fiscal year basis (per 100,000 population).
e) Construction permits issued has a more comprehensive methodology starting in FY15 and going forward.
2010
258168
c) Library patrons visits decreased at the same time the volume of items borrowed increased.
2009
250839240
2008
259973404
b) The municipal court cases processed decreased due to less court filings.
Operating Indicators by Function/Program
2007
333812423
Library, recreation, and cultural services:
Volume of library collection borrowed
Fire and emergency medical services:
Building square footage maintained
Number of purchase orders issued
Last ten fiscal years - unaudited
Municipal Court cases processed
Number of risk claims managed
Land use applications reviewed
Number of library patron visits
U.S. median city crime index
Construction permits issued
Job applications processed
Planning and development:
Individual City Departments
City of Eugene, Oregon
Parking citations issued
Parking permits issued
Emergency responses
Hult Center attendees
Eugene crime index
Recreation services
Calls for service
Fire inspections
Central services:
Function/Program
Public works:
Data source
Police:
Notes
151
City of Eugene, Oregon
I-17
Capital Asset Statistics by Function/Program
Last ten fiscal years - unaudited
Fiscal Year
2007200820092010201120122013201420152016
Function/Program
Fire and emergency medical services:
Ambulances11111010101010101010
Fire stations11111111111111111111
Fire apparatus23292929292929292929
Library, recreation, and cultural services:
Amphitheatre1111111111
Performing arts center1111111111
Community centers8888888888
9-hole golf course1111111111
Indoor/outdoor pool3333333333
Police:
Patrol vehicles63654242434343525252
Public works:
Jogging and hiking trails (miles)29292828282838394447
On/off street biking trails (miles)130132153157157159159159304248
Park acreage3,1503,6703,6713,6713,9874,2834,5064,5764,6774,800
Streets maintained (miles)526538533533533533533540538543
Alleys (miles)42424242424343434343
Sidewalks (miles)654673700738772772791791792756
Drainage Lines (miles)567567567601601601601601601601
Wastewater collection lines (miles)797807813815811812821821821821
a) Beginning in FY15, bike lanes are being calculated based on lane miles as opposed to centerline miles.
b) Prior to FY16 the sidewalk and biking trails included the Urban Growth Boundary; starting with FY16 these are within City Limits.
Data source
Individual City Departments
152
AUDIT COMMENTS AND GOVERNMENT
AUDITING STANDARDS SECTIONS
Audit Comments & Government
Auditing Standards Sections
AUDIT COMMENTS
Audit Comments
AUDIT COMMENTS
(Comments and Disclosures Required by State Regulators)
_________
Oregon Administrative Rules 162-10-000 through 162-10-320, of the Minimum Standards for Audits of Oregon
Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of
Accountancy, enumerate the financial statements, schedules, comments and disclosures required in audit reports.
The required financial statements and schedules are set forth in preceding sections of this report. Required
comments and disclosures related to the audit of such statements and schedules are set forth following.
153
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154
INDEPENDENT!
5Lhw{REPORT
REQUIREDBYOREGONSTATEREGULATIONS
TotheHonorableMayor,Membersofthe
CityCouncilandtheCityManager
CityofEugene,Oregon
WehaveauditedthebasicfinancialstatementsofCityofEugene,Oregonasofandfortheyearended
June30,2016,andhaveissuedourreportthereondatedNovember21,2016.Weconductedourauditin
accordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmericaand Government
AuditingStandards.
Compliance
AspartofobtainingreasonableassuranceaboutwhetherCityof9ǒŭĻƓĻƭbasicfinancialstatementsare
freeofmaterialmisstatement,weperformedtestsofitscompliancewithcertainprovisionsoflaws,
regulations,contractsandgrantsincludingprovisionsofOregonRevisedStatutesasspecifiedinOregon
AdministrativeRulesOAR16210000to16210320oftheMinimumStandardsforAuditsofOregon
MunicipalCorporations,noncompliancewithwhichcouldhaveadirectandmaterialeffectonthe
determinationoffinancialstatementsamounts.However,providinganopiniononcompliancewiththose
provisionswasnotanobjectiveofouraudit,andaccordingly,wedonotexpresssuchanopinion.
Weperformedprocedurestotheextentweconsiderednecessarytoaddresstherequiredcommentsand
disclosureswhichincluded,butwerenotlimitedto,thefollowing:
Depositofpublicfundswithfinancialinstitutions(ORSChapter295).
Indebtednesslimitations,restrictionsandrepayment.
Budgetslegallyrequired(ORSChapter294).
Insuranceandfidelitybondsinforceorrequiredbylaw.
Programsfundedfromoutsidesources.
Highwayrevenuesusedforpublichighways,roads,andstreets.
Authorizedinvestmentofsurplusfunds(ORSChapter294).
Publiccontractsandpurchasing(ORSChapters279A,279B,279C).
InconnectionwithourtestingnothingcametoourattentionthatcausedustobelieveCityofEugenewas
notinsubstantialcompliancewithcertainprovisionsoflaws,regulations,contracts,andgrants,including
theprovisionsofOregonRevisedStatutesasspecifiedinOregonAdministrativeRules16210000through
16210320oftheMinimumStandardsforAuditsofOregonMunicipalCorporationsexceptasfollows:
1.DeficitnetpositonaredescribedinNote(3)(B)tothefinancialstatements,Stewardship,
Compliance,andAccountability.
1976 Garden Ave., Eugene OR 97403
541.342.5161 www.islercpa.com
155
OAR162100230InternalControl
Inplanningandperformingouraudit,weconsideredCityof9ǒŭĻƓĻƭinternalcontroloverfinancial
reporting(internalcontrol)asabasisfordesigningourauditingproceduresforthepurposeofexpressing
niononthe
ouropiniononthefinancialstatements,butnotforthepurposeofexpressinganopi
effectivenessofCityof9ǒŭĻƓĻƭinternalcontrol.Accordingly,wedonotexpressanopiniononthe
effectivenessofCityof9ǒŭĻƓĻƭinternalcontrol.
A deficiencyininternalcontrol existswhenthedesignoroperationofacontroldoesnotallow
managementoremployees,inthenormalcourseofperformingtheirassignedfunctions,toprevent,or
detectandcorrect,misstatementsonatimelybasis.A materialweakness isadeficiency,orcombination
ofdeficiencies,ininternalcontrol,suchthatthereisareasonablepossibilitythatamaterialmisstatement
oftheentity'sfinancialstatementswillnotbeprevented,ordetectedandcorrected,onatimelybasis.A
significantdeficiency isadeficiency,oracombinationofdeficiencies,ininternalcontrolthatislesssevere
thanamaterialweakness,yetimportantenoughtomeritattentionbythosechargedwithgovernance.
Ourconsiderationofinternalcontrolwasforthelimitedpurposedescribedinthefirstparagraphofthis
sectionandwasnotdesignedtoidentifyalldeficienciesininternalcontrolthatmightbematerial
weaknessesorsignificantdeficiencies.Giventheselimitations,duringourauditwedidnotidentifyany
deficienciesininternalcontrolthatweconsidertobematerialweaknesses.However,material
weaknessesmayexistthathavenotbeenidentified.
ThisreportisintendedsolelyfortheinformationanduseoftheHonorableMayor,membersoftheCity
Council,theCityManager,managementoftheCityofEugeneandtheOregonSecretaryofStateandis
notintendedtobeandshouldnotbeusedbyanyoneotherthanthosespecifiedparties.
ISLERCPA
By:GaryIskra,CPA,amemberofthefirm
Eugene,Oregon
November21,2016
156
GOVERNMENT AUDITING STANDARDS
Government Auditing Standards
Government Auditing Standards Report
157
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158
INDEPENDENT!
5Lhw{REPORTONINTERNALCONTROL
OVERFINANCIALREPORTINGANDONCOMPLIANCEAND
OTHERMATTERSBASEDONANAUDITOFFINANCIAL
STATEMENTSPERFORMEDINACCORDANCEWITH
GOVERNMENTAUDITINGSTANDARDS
TotheHonorableMayorandMembersoftheCityCouncil
CityofEugene,Oregon
Wehaveaudited,inaccordancewiththeauditingstandardsgenerallyacceptedintheUnitedStatesof
Americaandthestandardsapplicabletofinancialauditscontainedin GovernmentAuditingStandards
issuedbytheComptrollerGeneraloftheUnitedStates,thefinancialstatementsofthegovernmental
activities,thebusinesstypeactivities,eachmajorfund,andtheaggregateremainingfundinformationof
CityofEugene,OregonΛͻƷŷĻ/źƷǤͼΜasofandfortheyearendedJune30,2016,andtherelatednotesto
thefinancialstatements,whichcollectivelycomprisethe/źƷǤƭbasicfinancialstatements,andhaveissued
ourreportthereondatedNovember21,2016.
InternalControlOverFinancialReporting
Inplanningandperformingourauditofthefinancialstatements,weconsideredthe/źƷǤƭinternalcontrol
overfinancialreporting(internalcontrol)todeterminetheauditproceduresthatareappropriateinthe
circumstancesforthepurposeofexpressingouropinionsonthefinancialstatements,butnotforthe
purposeofexpressinganopinionontheeffectivenessofthe/źƷǤƭinternalcontrol.Accordingly,wedo
notexpressanopinionontheeffectivenessofthe/źƷǤƭinternalcontrol.
A deficiencyininternalcontrol existswhenthedesignoroperationofacontroldoesnotallow
managementoremployees,inthenormalcourseofperformingtheirassignedfunctions,toprevent,or
detectandcorrect,misstatementsonatimelybasis.A materialweakness isadeficiency,orcombination
ofdeficiencies,ininternalcontrol,suchthatthereisareasonablepossibilitythatamaterialmisstatement
oftheentity'sfinancialstatementswillnotbeprevented,ordetectedandcorrectedonatimelybasis.A
significantdeficiency isadeficiency,oracombinationofdeficiencies,ininternalcontrolthatislesssevere
thanamaterialweakness,yetimportantenoughtomeritattentionbythosechargedwithgovernance.
bedinthefirstparagraphofthis
Ourconsiderationofinternalcontrolwasforthelimitedpurposedescri
sectionandwasnotdesignedtoidentifyalldeficienciesininternalcontrolthatmightbematerial
weaknessesorsignificantdeficiencies.Giventheselimitations,duringourauditwedidnotidentifyany
deficienciesininternalcontrolthatweconsidertobematerialweaknesses.However,material
weaknessesmayexistthathavenotbeenidentified.
ComplianceandOtherMatters
AspartofobtainingreasonableassuranceaboutwhethertheCity'sfinancialstatementsarefreefrom
materialmisstatement,weperformedtestsofitscompliancewithcertainprovisionsoflaws,regulations,
contracts,andgrantagreements,noncompliancewithwhichcouldhaveadirectandmaterialeffecton
thedeterminationoffinancialstatementamounts.However,providinganopiniononcompliancewith
thoseprovisionswasnotanobjectiveofouraudit,andaccordingly,wedonotexpresssuchanopinion.
Theresultsofourtestsdisclosednoinstancesofnoncomplianceorothermattersthatarerequiredtobe
reportedunder GovernmentAuditingStandards.
1976 Garden Ave., Eugene OR 97403
541.342.5161 www.islercpa.com
159
PurposeofThisReport
Thepurposeofthisreportissolelytodescribethescopeofourtestingofinternalcontrolandcompliance
andtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessofthe/źƷǤƭinternal
controloroncompliance.Thisreportisanintegralpartofanauditperformedinaccordancewith
GovernmentAuditingStandards inconsideringthe/źƷǤƭinternalcontrolandcompliance.Accordingly,
thiscommunicationisnotsuitableforanyotherpurpose.
IslerCPA
ByGaryIskra,CPA,amemberofthefirm
Eugene,Oregon
November21,2016
160
OMB Uniform Guidance (Single Audit) Report
________
161
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162
INDEPENDENT!
5Lhw{REPORTONCOMPLIANCEFOR
EACHMAJORPROGRAMANDONINTERNALCONTROL
OVERCOMPLIANCEREQUIREDBYTHEUNIFORMGUIDANCE
TotheHonorableMayorandMembersoftheCityCouncil
CityofEugene,Oregon
ReportonComplianceforEachMajorFederalProgram
WehaveauditedtheCityofEuŭĻƓĻƭΛͻƷŷĻ/źƷǤͼΜcompliancewiththetypesofcompliancerequirements
describedinthe OMBComplianceSupplement thatcouldhaveadirectandmaterialeffectoneachofthe
/źƷǤƭmajorfederalprogramsfortheyearendedJune30,2016.The/źƷǤƭmajorfederalprogramsare
identifiedinthesummaryofğǒķźƷƚƩƭresultssectionoftheaccompanyingscheduleoffindingsand
questionedcosts.
ağƓğŭĻƒĻƓƷƭResponsibility
Managementisresponsibleforcompliancewithfederalstatutes,regulations,andthetermsand
conditionsofitsfederalawardsapplicabletoitsfederalprograms.
!ǒķźƷƚƩƭResponsibility
Ourresponsibilityistoexpressanopiniononcomplianceforeachofthe/źƷǤƭmajorfederalprograms
basedonourauditofthetypesofcompliancerequirementsreferredtoabove.Weconductedouraudit
ofcomplianceinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica;
thestandardsapplicabletofinancialauditscontainedin GovernmentAuditingStandards,issuedbythe
ComptrollerGeneraloftheUnitedStates;andtheauditsrequirementsofTitle2U.S.CodeofFederal
Regulations Part200,UniformAdministrativeRequirements,CostPrinciples,andAuditRequirementsfor
FederalAwards(UniformGuidance).ThosestandardsandtheUniformGuidancerequirethatweplan
andperformtheaudittoobtainreasonableassuranceaboutwhethernoncompliancewiththetypesof
compliancerequirementsreferredtoabovethatcouldhaveadirectandmaterialeffectonamajor
federalprogramoccurred.Anauditincludesexamining,onatestbasis,evidenceaboutthe/źƷǤƭ
compliancewiththoserequirementsandperformingsuchotherproceduresasweconsiderednecessary
inthecircumstances.
Webelievethatourauditprovidesareasonablebasisforouropiniononcomplianceforeachmajor
federalprogram.However,ourauditdoesnotprovidealegaldeterminationoftheCity'scompliance.
OpiniononEachMajorFederalProgram
plied,inalletypsofcompliancerequirements
Inouropinion,theCitycommaterialrespects,withthe
referredtoabovethatcouldhaveadirectandmaterialeffectoneachofitsmajorfederalprogramsfor
theyearendedJune30,2016.
OtherMatters
Theresultsofourauditingproceduresdisclosedinstancesofnoncomplicance,whicharerequiredtobe
reportedinaccordancewiththeUniformGuidanceandwhicharedescribedintheaccompanying
1976 Garden Ave., Eugene OR 97403
541.342.5161 www.islercpa.com
163
scheduleoffindingsandquestionedcostsasitem2016001.Ouropiniononeachmajorfederalprogram
isnotmodifiedwithrespecttothismatters.
The/źƷǤƭresponsetothenoncompliancefindingidentifiedinourauditisdescribedintheaccompanying
scheduleoffindingsandquestionedcosts.The/źƷǤƭresponsewasnotsubjectedtotheauditing
proceduresappliedintheauditofcomplianceand,accordingly,weexpressnoopinionontheresponse.
ReportonInternalControlOverCompliance
ThemanagementoftheCityisresponsibleforestablishingandmaintainingeffectiveinternalcontrolover
ove.Inplanningandperformingour
compliancewiththetypesofcompliancerequirementsreferredtoab
auditofcompliance,weconsideredthe/źƷǤƭinternalcontrolovercompliancewiththetypesof
requirementsthatcouldhaveadirectandmaterialeffectoneachmajorfederalprogramtodetermine
theauditingproceduresthatareappropriateinthecircumstancesforthepurposeofexpressingan
opiniononcomplianceforeachmajorfederalprogramandtotestandreportoninternalcontrolover
complianceinaccordancewiththeUniformGuidance,butnotforthepurposeofexpressinganopinion
ontheeffectivenessofinternalcontrolovercompliance.Accordingly,wedonotexpressanopinionon
theeffectivenessoftheCity'sinternalcontrolovercompliance.
A deficiencyininternalcontrolovercompliance existswhenthedesignoroperationofacontrolover
compliancedoesnotallowmanagementoremployees,inthenormalcourseofperformingtheirassigned
functions,toprevent,ordetectandcorrect,noncompliancewithatypeofcompliancerequirementofa
federalprogramonatimelybasis.A materialweaknessininternalcontrolovercompliance isadeficiency,
orcombinationofdeficiencies,ininternalcontrolovercompliance,suchthatthereisareasonable
deralprogramwill
possibilitythatmaterialnoncompliancewithatypeofcompliancerequirementofafe
notbeprevented,ordetectedandcorrected,onatimelybasis.Asignificantdeficiencyininternalcontrol
overcompliance isadeficiency,oracombinationofdeficiencies,ininternalcontrolovercompliancewith
atypeofcompliancerequirementofafederalprogramthatislessseverethanamaterialweaknessin
internalcontrolovercompliance,yetimportantenoughtomeritattentionbythosechargedwith
governance.
Ourconsiderationofinternalcontrolovercompliancewasforthelimitedpurposedescribedinthefirst
paragraphofthissectionandwasnotdesignedtoidentifyalldeficienciesininternalcontrolover
compliancethatmightbematerialweaknessesorsignificantdeficiencies.Wedidnotidentifyany
deficienciesininternalcontrolovercompliancethatweconsidertobematerialweaknesses.However,
materialweaknessesmayexistthathavenotbeenidentified.
Thepurposeofthisreportoninternalcontrolovercomplianceissolelytodescribethescopeofour
testingofinternalcontrolovercomplianceandtheresultsofthattestingbasedontherequirementsof
theUniformGuidance.Accordingly,thisreportisnotsuitableforanyotherpurpose.
IslerCPA
ByGaryIskra,CPA,amemberofthefirm
Eugene,Oregon
November21,2016
164
CITY OF EUGENE, OREGON
Schedule of Findings and Questioned Costs
June 30, 2016
Section I - Summary of Auditor’s Results
1. The auditor’s report expresses an unmodified opinion on the financial statements of the City of Eugene.
2. No significant deficiencies or material weaknesses relating to the audit of the financial statements are reported in
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other
the
Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards.
3. No instances of noncompliance material to the financial statements of the City of Eugene were disclosed during
the audit.
4. No significant deficiencies or material weaknesses relating to the audit of the major federal award programs are
reported in the Independent Auditor’s Report on Compliance for Each Major Federal Program and on Internal
Control over Compliance Required by OMB Uniform Guidance.
5. The auditor’s report on compliance for the major federal award programs for the City of Eugene expresses an
unmodified opinion on all major federal programs.
6. An audit finding that is required to be reported in accordance with 2 CFR Section 200.516(a) is reported in this
schedule.
7. The programs tested as a major programs were:
Community Development Block Grants/Entitlement Grants, CFDA #14.218
Airport Improvement Program, CFDA #20.106
8. The threshold for distinguishing between Type A and B programs was $750,000.
9. The City of Eugene qualified as a low-risk auditee.
Section II - Financial Statement Findings
None
Section III - Federal Award Findings and Questioned Costs
Finding 2016-001
Program: Community Development Block grants/Entitlement Grants
CFDA No.: 14.218
Federal Grantor: Department of Housing and Urban Development
Award No.: B-15-MC-41-0001
Award Year: 2015-2016
Compliance Requirement: Subrecipient Monitoring
Criteria or Specific Requirement
2 CFR 200.331(a) requires that pass-through entities provide certain information to subrecipients including specific pieces of
information identifying the subaward and the federal award from which it is sourced. 2 CFR 200.331(a) also requires that the
certain information identifying the subrecipient agree to the subrecipients profile in the System for Award Management (SAM.gov).
Condition
It was noted that the City’s agreements with subrecipients did not provide all information required by 2 CFR 200.331(a). It was also
noted that one subrecipient did not appear to be registered on SAM.gov.
Cause
The City continued using subrecipient agreement formats that had not been updated to conform to 2 CFR 200.331(a). The City did
not perform verification in SAM.gov of information provided by subrecipients.
continued
165
CITY OF EUGENE, OREGON
Schedule of Findings and Questioned Costs
Section III - Federal Award Findings and Questioned Costs, continued
Effect
Subrecipients may not have been notified of all required information needed to identify the federal awards and its compliance
requirements.
Questioned Costs
None.
Context
The condition noted above was identified as part of our testing of subrecipient monitoring. We noted that the subrecipient
agreements had indicated that the funds were CDBG program funds provided to the City by HUD. The information omitted
consisted of items such as the Federal Award Identification Number, Federal Award Date, and the Subrecipient’s DUNS number.
Auditor noted that one subrecipient did not appear to be registered in SAM.gov, but had an active DUNS number issued by Dun
and Bradstreet.
Repeat Finding Status
This finding is not a repeat finding from the prior year.
Recommendation
We recommend that the City implement polices and procedures to ensure that current and future subrecipient agreements include
all required information. We also recommend that the City review and verify with SAM.gov specific identifying information received
from subrecipients.
Views of Responsible Officials and Planned Corrective Action
The City is in the process of implementing the following corrective actions:
1. Update all subrecipient agreements to ensure all required information is included.
2. Amend procedures to ensure that subrecipient reporting requirements remain up to date.
3. Implement procedures to verify that all subrecipients are registered with SAM.gov.
Section IV – Summary Schedule of Prior Audit Findings
None
166
City of Eugene, Oregon
J-1
Schedule of Expenditures of Federal Awards
For the fiscal year ended June 30, 2016
(amounts in dollars)Federal
Passed
CFDAthrough to
Federal Grantor Program TitlenumberGrant numbersubrecipientsExpenditures
U.S. Department of Housing and Urban Development
Direct program:
HOME Investment Partnerships Program 14.239M-15-DC-41-02000646,274
CDBG - Entitlement Grants Cluster:
Direct program:
Community Development Block Grants/Entitlement Grants14.218B-15-MC-41-0001359,7281,318,344
Total CDBG - Entitlement Grants Cluster359,7281,318,344
Total U.S. Department of Housing and Urban Development359,7281,964,618
U.S. Department of the Interior
Direct program:
BLM Wildland Urban Interface Community Fire Assistance15.228L15AC00129035,005
Fish, Wildlife and Plant Conservation Resource Management15.231L10AC20366027,894
Fish, Wildlife and Plant Conservation Resource Management15.231L15AC0018902,143
Grants passed through State of Oregon:
Historic Preservation Fund Grants-in-Aid15.904OR-16-0805,450
Total U.S. Department of the Interior070,492
U.S. Department of Justice
JAG Program Cluster:
Grants passed through Lane County, Oregon:
Edward Byrne Memorial Justice Assistance Grant Program16.7382014-DJ-BX-064509,948
Edward Byrne Memorial Justice Assistance Grant Program16.7382015-DE-BX-K01402,913
Edward Byrne Memorial Justice Assistance Grant Program16.7382015-DJ-BX-0626036,977
Total JAG Program Cluster049,838
Total U.S. Department of Justice049,838
U.S. Department of Transportation
Direct program:
TSA Transaction Agreement20.000HSTS04-12-H-CT1067021,780
Airport Improvement Program20.1063-41-0018-04903,639
Airport Improvement Program20.1063-41-0018-05003,278,988
Airport Improvement Program20.1063-41-0018-05101,500,000
Airport Improvement Program20.1063-41-0018-052060,218
Grants passed through Oregon Impact:
Minimum Penalties for Repeat Offenders for Driving While Intoxicated20.6082015-2016034,877
Grants passed through State of Oregon:
National Highway Traffic Safety Administration0
20.6141468984,995
Interagency Hazardous Materials Public Sector
Training and Planning Grants0
20.703IGA-361-20145,000
Highway Planning and Construction Cluster:
Grants passed through State of Oregon:
Highway Planning and Construction20.205298090
550,053
Highway Planning and Construction20.205299830
42,137
Highway Planning and Construction20.205300450
6,665
Highway Planning and Construction20.205301620
3,037
Highway Planning and Construction20.205302180
402
Highway Planning and Construction20.205303120
82,487
Highway Planning and Construction20.205303160
17,879
continued
167
City of Eugene, OregonJ-1, continued
Schedule of Expenditures of Federal Awards
For the fiscal year ended June 30, 2016
(amounts in dollars)FederalPassed
through to
CFDA
subrecipients
numberGrant numberExpenditures
Federal Grantor Program Title
U.S. Department of Transportation, continued
Highway Planning and Construction Cluster, continued:
Grants passed through State of Oregon, continued:
Highway Planning and Construction20.205303850
65,057
Highway Planning and Construction20.205303940
75,086
Highway Planning and Construction20.205304400
399
Grants passed through Lane Transit District:
Highway Planning and Construction20.205187550
20,000
Grants passed through Lane Council of Governments:
Highway Planning and Construction20.2052016-002280
45,000
Total Highway Planning and Construction Cluster
0908,202
Highway Safety Cluster:
Grants passed through State of Oregon:
State and Community Highway Safety20.600
SC-15-35-12 AAA05,000
State and Community Highway Safety20.600
SC-16-35-12 AAA04,000
National Priority Safety Programs0
20.616M1HVE-15-46-03 CCC10,888
National Priority Safety Programs0
20.616M1HVE-16-46-03 JJJ18,565
Grants passed through Oregon Impact:
State and Community Highway Safety20.6002015-201602,746
National Priority Safety Programs20.6162014-201504,485
Total Highway Safety Cluster45,684
0
Total U.S. Department of Transportation05,863,383
U.S. Environmental Protection Agency
Direct program:
Brownfields Assessment and Cleanup Cooperative Agreements66.818BF-00J66601052,910
Total U.S. Environmental Protection Agency052,910
U.S. Department of Energy
Grants passed through State of Oregon:
Bonneville Power Administration Agreement81.000KEW-40190
Total U.S. Department of Energy0190
U.S. Department of Education
Grants passed through Eugene School District 4J:
Twenty-First Century Community Learning Centers84.28716923080,907
Total U.S. Department of Education080,907
U.S. Department of Health and Human Services
Grants passed through State of Oregon:
Hospital Preparedness Program (HPP)
Ebola Preparedness and Response Activities93.81715007204,870
Hospital Preparedness Program (HPP)
Ebola Preparedness and Response Activities93.817150066010,000
Grants passed through Lane County, Oregon:
Block Grants for Community Mental Health Services93.95851582018,100
Total U.S. Department of Health and Human Services032,970
continued
168
City of Eugene, OregonJ-1, continued
Schedule of Expenditures of Federal Awards
For the fiscal year ended June 30, 2016
(amounts in dollars)FederalPassed
through to
CFDA
subrecipients
numberGrant numberExpenditures
Federal Grantor Program Title
U.S. Department of Homeland Security
Grants passed through State of Oregon:
Emergency Management Performance Grants97.04215-5410147,463
Homeland Security Grant Program97.06715-217066,369
State Homeland Security Program (SHSP)97.07314-2220917
State Homeland Security Program (SHSP)97.07314-223063,156
State Homeland Security Program (SHSP)97.07314-224021,714
Total U.S. Department of Homeland Security0299,619
Total Federal Financial Assistance 8,414,927359,728
169
CITY OF EUGENE, OREGON
Notes to Schedule of Expenditures of Federal Awards
June 30, 2016
(1) Purpose of the Schedule
The accompanying schedule of expenditures of federal awards (the “Schedule”) is a supplementary schedule to the
City of Eugene’s (City) basic financial statements and is presented for purposes of additional analysis. Because the
Schedule presents only a selected portion of the activities of the City, it is not intended to and does not present either
the financial position, changes in fund balances, or the operating funds’ revenues or expenditures of the City.
(2) Significant Accounting Policies
Basis of Presentation
The information in the Schedule is presented in accordance with the Uniform Guidance.
Federal Financial Assistance
Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency,
either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property,
interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal
surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable.
Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts
between the state and federal government for which the federal government procures tangible goods or services are
not considered to be federal financial assistance.
Major Programs
The Uniform Guidance establishes criteria to be used in defining major federal financial assistance programs. Major
programs for the City are those programs selected for testing by the auditor using a risk-assessment model, as well
as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar
requirements may be grouped into a cluster for testing purposes.
Reporting Entity
The reporting entity is fully described in Note 1A to the basic financial statements. Additionally, the Schedule
includes all federal programs administered by the City for the year ended June 30, 2016.
Revenue and Expenditure Recognition
The receipt and expenditure of federal awards are accounted for under the modified accrual basis of accounting.
Revenues are recorded as received in cash or on the accrual basis where measurable and available. Expenditures
are recorded when the liability is incurred.
Indirect Cost Rate
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
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