HomeMy WebLinkAboutItem 3C: Resolution on FY11 CAFR
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: Adoption of Resolution 5050 Acknowledging Receipt of the City of Eugene,
Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2011
Meeting Date: January 9, 2012 Agenda Item Number: 3C
Department: Central Services Staff Contact: Fionan Cronin
www.eugene-or.gov Contact Telephone Number: 541-682-5394
ISSUE STATEMENT
This is a resolution acknowledging receipt of the City of Eugene, Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended June 30, 2011. This resolution demonstrates compliance with
ORS 297.465(2), which requires that a copy of the City’s CAFR, containing a signed expression of
opinion, be furnished to each member of the governing body.
BACKGROUND
Under Oregon Municipal Audit Law, the City is required each fiscal year to contract with an authorized
accounting firm for the audit of its accounts and fiscal affairs (ORS 297.425). The firm of Isler CPA
(auditors) has completed the audit of the City of Eugene's financial statements for the fiscal year ended
June 30, 2011, and issued an unqualified opinion on the basic financial statements.
The auditors conduct the audit of the City's basic financial statements in accordance with generally
accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corporations.
In addition, as a recipient of federal grants, the City is subject to the Federal Single Audit Act of 1984,
which requires that the audit be conducted in accordance with Government Auditing Standards, issued
by the Comptroller General of the United States and Office of Management and Budget (OMB) Circular
A-133, Audits of States, Local Governments and Non-Profit Organizations. These standards and OMB
Circular A-133 require that the auditors plan and perform the audit to obtain reasonable assurance about
whether the basic financial statements are free of material misstatement and whether the City complied
with the laws and regulations pertaining to federally-funded programs. In addition to state and federal
requirements, the City has a contractual obligation in connection with its debt issuances which requires
that the City issue annual audited financial statements.
Management is responsible for the information contained in, and the preparation of, the City's financial
statements. To effectively fulfill this responsibility and to contain the cost of auditor services, City staff
devotes significant effort to the closing of accounting records, the preparation of schedules and audit
workpapers, and the production of the CAFR. This also results in staff expertise being developed on
specific financial and service issues that can then be used to assist departments and other pertinent
parties.
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The key pages of the CAFR to review are pages 11-12 and pages 151-152, where two of the auditors'
reports are found. In the first report, the auditors have issued an unqualified opinion (also known as a
"clean opinion") on the City's basic financial statements, indicating that the City has prepared these
statements in conformity with generally accepted accounting principles (GAAP). GAAP for state and
local governments is promulgated by the Governmental Accounting Standards Board (GASB) to ensure
consistency in accounting and comparability in financial reporting among state and local governments.
A clean opinion is a fundamental financial goal for every government, as it represents the highest level
of opinion a government can receive from its independent auditors. A clean opinion is an important
indicator of sound financial management and creditworthiness to the citizens, other governmental
jurisdictions (state and federal), credit rating agencies, investment bankers, bond holders, and other
private sector entities. For policy makers, a clean opinion means that the information in the CAFR is
accurate and reliable.
In the second report, the auditors address the City’s compliance with applicable provisions of Oregon
Revised Statutes including requirements related to debt, deposit of public funds, preparation and
adoption of the budget, accounting records and related internal control structure, etc. In addition, the
auditors also report if the City had any significant internal control weaknesses. The auditors noted that
the City complied with all laws with one exception - the City exceeded its legal budget (page 48) in two
funds:
The Special Assessment Management Special Revenue Fund overspent its departmental
appropriation by $57,528, or 3.0%. This occurred due to increased street subsidies for qualifying
property owners for the Crest drive assessment as a result of allowing additional opportunities
for property owners to qualify and changes in the criteria to allow more properties to receive
subsidies.
The Parking Services Enterprise Fund overspent its Planning and Development departmental
appropriation by $116,152, or 3.6%. A portion of the overexpenditure was due to adding more
neighborhood parking mitigation changes in the neighborhoods impacted by the new University
of Oregon arena. The remainder was due to unanticipated garage security costs due to a delay in
the implementation of a new downtown police patrol unit.
The Parking Services Enterprise Fund also exceeded its Public Works appropriations by $9,637,
or 13%, because of higher than anticipated costs to make parking district changes for free
downtown parking and changes for the new parking near Mac Court and the UO Arena district.
ORS require that all over-expenditures be brought to the attention of the governing body. Because there
is no dollar threshold, it is common for local governments to have occasional over-expenditures. The
particular over-expenditures for fiscal year 2011 were unique circumstances that are not likely to be
repeated.
Two additional reports, beginning on page 155, specifically address compliance with Federal laws,
regulations, contracts and grants, and indicate that the auditors found no material instances of the City's
noncompliance with these requirements, nor were there any findings or questioned costs noted in
relation to Federal awards made to the City.
Professional requirements mandate auditors provide a report to the governing body that addresses any
concerns or findings they encountered in such audit-related issues as significant audit findings,
accounting estimates and disagreements with management. Isler CPA’s memo addressing these issues
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for fiscal year 2011 is attached and it states that there were no concerns that required communication to
the council.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Eugene for its
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2010. This was the
35th consecutive year that the City has achieved this prestigious award. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently organized
CAFR, which satisfies both generally accepted accounting principles and applicable legal requirements.
In addition, the requirements for the certificate provide much of the information needed for the City’s
credit assessments.
RELATED CITY POLICIES
Policy B.1 of the City’s Financial Management Goals and Policies states that “The City will maintain an
accounting and financial reporting system that allows reporting in conformance with Generally
Accepted Accounting Principles and Oregon Local Budget Law and will issue a Comprehensive Annual
Financial Report each fiscal year.” This action signifies formal completion of this process for the fiscal
year ended June 30, 2011, and demonstrates council’s compliance with the policy.
COUNCIL OPTIONS
None.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends adoption of the resolution.
SUGGESTED MOTION
Move to adopt Resolution 5050 acknowledging receipt of the Comprehensive Annual Financial Report
(CAFR) for the City of Eugene, for the fiscal year ended June 30, 2011.
ATTACHMENTS
A.Resolution
B.Copy of the 2011 Comprehensive Annual Financial Report
C.Copy of the Isler CPA memo
FOR MORE INFORMATION
Staff Contact: Fionan Cronin
Telephone: 541-682-5394
Staff E-Mail: finn.j.cronin@ci.eugene.or.us
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ATTACHMENT A
RESOLUTION NO.
A RESOLUTION ACKNOWLEDGING THE RECEIPT OF THE
COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE
CITY OF EUGENE FOR THE FISCAL YEAR ENDED
JUNE 30, 2011
The City Council of the City of Eugene finds that:
The firm of Isler CPA has completed the audit of the financial statements of the City of Eugene for
the fiscal year ended June 30, 2011, as required by ORS 297.425 and, pursuant to ORS 297.465, reported to
the Mayor and City Council on its findings.
NOW, THEREFORE,
BE IT RESOLVED by the City Council of the City of Eugene, a Municipal Corporation of the State of
Oregon, as follows:
Section 1. That the Council hereby acknowledges that it has received the Comprehensive Annual
Financial Report for the fiscal year ended June 30, 2011.
The foregoing resolution adopted the 9th day of January, 2012.
City Recorder
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF EUGENE, OREGON
FISCAL YEAR ENDED JUNE 30, 2011
REPORT PREPARED BY THE CITY
FINANCE DIVISION
INTRODUCTORY SECTION
CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Year ended June 30, 2011
Table of Contents
Exhibit Page(s)
INTRODUCTORY SECTION
Letter of Transmittal 1 - 6
GFOA Certificate of Achievement 7
Organizational Chart 8
Principal City Officials 9
FINANCIAL SECTION
Independent Auditors’ Report 11 - 12
Management’s Discussion and Analysis 13 - 22
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets 1 23
Statement of Activities 2 24
Fund Financial Statements:
Balance Sheet - Governmental Funds 3 25
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds 4 26
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 5 27
Statement of Fund Net Assets - Proprietary Funds 6 28 - 29
Statement of Revenues, Expenses, and
Changes in Fund Net Assets - Proprietary Funds 7 31
Statement of Cash Flows - Proprietary Funds 8 32 - 33
Notes to Basic Financial Statements 35 - 75
i
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 77
Community Development Fund A-2 78
Notes to Required Supplementary Information 79 - 80
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet B-1 81
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances B-2 82
Special Revenue Funds:
Combining Balance Sheet - Nonmajor Special Revenue Funds C-1 83
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Special Revenue Funds C-2 84
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
Construction and Rental Housing Fund C-3 85
Library Local Option Levy Fund C-4 86
Library, Parks, and Recreation Fund C-5 87
Public Safety Answering Point Fund C-6 88
Road Fund C-7 89
Solid Waste and Recycling Fund C-8 90
Special Assessment Management Fund C-9 91
Telecom Registration and Licensing Fund C-10 92
ii
CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Table of Contents, continued
Schedule Page(s)
FINANCIAL SECTION, CONTINUED
Other Supplementary Information, continued:
Special Revenue Funds, continued:
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual, continued:
Urban Renewal Agency General Fund C-11 93
Urban Renewal Agency Riverfront Fund C-12 94
Debt Service Funds:
Combining Balance Sheet - Nonmajor Debt Service Funds D-1 95
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Debt Service Funds D-2 96
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
General Obligation Debt Service Fund D-3 97
Library Debt Service Fund D-4 98
Special Assessment Bond Debt Service Fund D-5 99
Urban Renewal Agency Debt Service Fund D-6 100
Capital Projects Funds:
Combining Balance Sheet - Nonmajor Capital Projects Funds E-1 101
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Capital Projects Funds E-2 102
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
General Capital Projects Fund E-3 103
Special Assessment Capital Projects Fund E-4 104
Systems Development Capital Projects Fund E-5 105
iii
CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Table of Contents, continued
Schedule Page(s)
FINANCIAL SECTION, CONTINUED
Other Supplementary Information, continued:
Capital Projects Funds, continued:
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual, continued:
Transportation Capital Projects Fund E-6 106
Urban Renewal Agency Capital Projects Fund E-7 107
Urban Renewal Agency Riverfront Capital Projects Fund E-8 108
Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in
Fund Net Assets - Budget and Actual:
Ambulance Transport Fund F-1 109
Municipal Airport Fund F-2 110
Parking Services Fund F-3 111
Stormwater Utility Fund F-4 112
Wastewater Utility Fund F-5 113
Internal Service Funds:
Combining Statement of Net Assets G-1 115
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Assets G-2 117
Combining Statement of Cash Flows G-3 118 - 119
Schedule of Revenues, Expenses, and Changes in
Fund Net Assets - Budget and Actual:
Facilities Services Fund G-4 120
Fleet Services Fund G-5 121
Information Systems and Services Fund G-6 122
Professional Services Fund G-7 123
Risk and Benefits Fund G-8 124
iv
CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Table of Contents, continued
Schedule Page(s)
FINANCIAL SECTION, CONTINUED
Other Supplementary Schedules:
Schedule of Property Tax Transactions H-1 125
Schedule of Bonded Debt Transactions H-2 126 - 127
STATISTICAL TABLES SECTION
Government-wide Information:
Net Assets by Component I-1 129
Changes in Net Assets I-2 130 - 131
Fund Information:
Fund Balances - Governmental Funds I-3 133
Changes in Fund Balances - Governmental Funds I-4 134 - 135
Taxable Assessed Value and Actual Value of Property I-5 136
Direct and Overlapping Property Tax Rates I-6 137
Property Tax Levies and Collections I-7 138
Ten Principal Property Taxpayers I-8 139
Ratio of Outstanding Debt by Type I-9 140
Ratio of General Bonded Debt Outstanding I-10 141
Direct and Overlapping Governmental Activities Debt I-11 142
Legal Debt Margin - General Obligation Bonded Debt I-12 143
Demographic and Economic Statistics I-13 144
Ten Principal Employers I-14 145
City Government Employees by Function/Program I-15 146
v
CITY OF EUGENE, OREGON
Comprehensive Annual Financial Report
Table of Contents, continued
Schedule Page(s)
STATISTICAL TABLES SECTION, CONTINUED
Fund Information, continued:
Operating Indicators by Function/Program I-16 147
Capital Asset Statistics by Function/Program I-17 148
AUDIT COMMENTS AND GOVERNMENT AUDITING STANDARDS SECTIONS
Audit Comments:
Independent Auditors’ Report Required by Oregon
State Regulations 151 - 152
Government Auditing Standards:
Government Auditing Standards Report:
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 155 - 156
OMB Circular A-133 (Single Audit) Report:
Report on Compliance with Requirements That Could
Have a Direct and Material Effect on Each Major
Program and on Internal Control Over Compliance
In Accordance With OMB Circular A-133 159 - 160
Schedule of Findings and Questioned Costs 161
Schedule of Expenditures of Federal Awards J-1 162 - 164
Notes to Schedule of Expenditures of Federal Awards 165
vi
Central Services
Finance Division
City of Eugene
th
100 W 10 Avenue, Suite 400
Eugene, Oregon 97401
(541) 682-5394
(541) 682-5802 FAX
December 15, 2011
www.eugene-or.gov
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 of the City of Eugene, Oregon, for
the fiscal year ended June 30, 2011.
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 (1) the cost of the control structure should not exceed the benefits likely to be
derived; and (2) the evaluation of cost and benefits require estimates and judgments by management. We
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 our knowledge and belief, the enclosed data is
presented accurately, in all material respects, along with 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 was to provide reasonable assurance that the financial statements of the City for
the fiscal year ended June 30, 2011 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 unqualified opinion that the City’s basic financial statements for the fiscal
year ended June 30, 2011, are fairly presented, in all material respects, in conformity with GAAP. The
independent auditors’ 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) Circular A-133. 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 internal controls and legal
requirements involving the administration of federal awards. The results of the independent audit for the fiscal
year ended June 30, 2011 indicated no instances of material weaknesses in the internal control structure or
significant violations of applicable laws and regulations. The independent auditors’ reports related specifically to
the Single Audit and OMB Circular A-133 are included in the Government Auditing Standards Section.
1
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 auditors’ report on the basic financial statements.
City Overview
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, but 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 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. Empowered by
state statute, the City levies a property tax on real and personal property located within its boundaries.
As of July 1, 2010, 157,845 people resided in Eugene, 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 town. 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 an average of 1.3% 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, library, recreational and cultural activities;
airport, wastewater treatment, stormwater management, general public works; and administration, along with
other functions associated with a full-service city. 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.
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. Therefore, the financial statements of the Urban Renewal Agency of the City of Eugene, although
legally separate, have been blended with those of the City 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 Chapters 294.305 through 294.565. Budgeting in Oregon is a joint effort between the people
affected by the budget and the appointed and elected officials responsible for providing the services. Elected or
appointed officials determine the allocation of resources to the service system. The State of Oregon Department
of Revenue checks to see that the budget is prepared according to law. Citizens involved with budget
preparation see that programs they want and need are adequately funded.
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 Budget Committee then reviews and revises the
proposed budget before making a recommendation to the City Council. Notices are published, budgets are made
available for review, and at least two public hearings are held one meeting is held before the Budget
Committee, which is composed of the eight City Councilors and eight citizen members, and one meeting is held
before the City Council. These requirements encourage public participation in the budget-making process and
give public exposure to budgeted programs and fiscal policies before the governing body of the municipal
corporation adopts the budget.
The legally adopted budget is at the fund and departmental level for current expenditures, with separate
appropriations established for capital projects, debt service, interfund transfers, interfund loans,
intergovernmental expenditures, and miscellaneous fiscal transactions. Budgetary control is internally
administered at a more restrictive level. Budget-to-actual comparisons areprovided in this report for each
individual fund for which an appropriated annual budget has been adopted. For the General Fund and
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.
2
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
east 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 four air
carriers, linking Eugene to Seattle, Portland, Denver, Salt Lake City, Phoenix/Mesa, Las Vegas, Los Angeles,
Oakland and San Francisco.
Eugene is the largest city in Lane County and the second largest city in Oregon, representing 45% of the
county’s, and 4% of the state’s population. Eugene’s economy typically follows the trends of the state and
national economies. The unemployment rate for Eugene rose sharply as a result of the recession, from an
average annual rate of 5.7% in 2008 to a high of 10.2% in 2009, primarily due to job losses in construction,
manufacturing, retail, and professional services. Eugene’s 2010 unemployment rate dropped to 9.7%, still high
by historic standards but lower than the unemployment rate for Lane County as a whole or for the State of
Oregon.
Annual Average Unemployment
As a Percent of Labor Force
12%
10%
%
8%
6%
4%
2001200220032004200520062007200820092010
EugeneLane CountyOregonU.S.
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 lower cost of living. However, Eugene’s population growth has slowed down significantly due to the
recent recession.
County, state and federal government agencies are centered in Eugene, as well as the University of Oregon and
Lane Community College. Between 2001 and 2009 employment in the public sector increased by 12%, largely
due to growth of the University of Oregon. In 2010, the University of Oregon had a record enrollment of 23,389
and provided approximately 4,000 local jobs. The University is a major contributor to Oregon’s economy, with an
estimated economic impact of $1.97 billion. The University of Oregon is ranked by the Carnegie Foundation to be
in the top category among U.S. research institutions.
3
As the local economy has diversified away from dependence on resource-based manufacturing, the Eugene-
Springfield area has become an increasingly important center for health services in Western Oregon. Between
2001 and 2009, employment in the health care services sector grew by 24%.
Some of the local job losses have been offset by large construction projects including the University of Oregon’s
new 405,000 square foot, 12,500 seat Mathew Knight Arena. This $200.0 million project was completed in
February, 2011. The University of Oregon campus is also the site for another large project that is underway, a
100,000 square-foot science building valued at $65.0 million. This building will house brain research, cognitive
science, neuroscience, green materials science, nanotechnology research, and solar technology research. The
East Campus Residence Hall is a $71.5 million project that broke ground in July 2010 and is expected to provide
housing for 450 students and academic amenities by the fall of 2012.
Several public and private construction projects are in progress in downtown Eugene. These include a new $55
million downtown campus for Lane Community College, located across from the Downtown Library. This project
will incorporate five floors of student housing along with a 90,000 square foot education building, and is expected
to be completed by November 2012. In addition, a major reconstruction project is the Broadway Commerce
Center at Broadway and Willamette Streets, and ground has been broken by Bennett Development for a new five-
story commercial building on an adjacent site. All of these projects have benefited from partnerships with the City
of Eugene and the Urban Renewal Agency. New downtown hotel accommodations will be provided by the Inn at
5th Street Market, which is currently under construction. These projects will continue to partially offset decreased
demand for residential and commercial construction due to a weakening real estate market and will provide new
permanent employment opportunities when completed.
Rail and air connections through Eugene also continue to benefit from new investments. In 2010, the main
runway at the Eugene Airport was repaved. Also, the Airport has received a $500,000 federal grant to help start
daily nonstop flights to San Jose, California. The Union Pacific Railroad will spend about $33.5 million to improve
75 miles of its rail line from Oakridge through Eugene and on to Harrisburg, as well as its rail yard in Eugene. The
U.S. Department of Transportation will provide a $13.5 million grant to complete repairs to the Coos Bay rail line,
which provides freight services between the City of Coos Bay and Eugene.
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 each major fund over the next six years. The City also utilizes three
additional important planning documents: the Capital Improvement Program, the Multi-Year Financial Plan and
theDebt Affordability Study.
In February of 2011, the City Council approved the Capital Improvement Program for FY12 to FY17. The Capital
Improvement Program (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 serves as
the basis for the capital budget and is updated every two years. The FY12-17 CIP totals about $152.3 million in
projects with funding secured or identified from a variety of sources.
Transportation is the largest CIP category with a total allocation of $46.9 million, of which $41.6 million is
dedicated towards pavement preservation, and another $5.3 million for other transportation projects. Airport
capital improvements, including new airport fire rescue station, terminal building expansion and preservation and
$25.5 million for public buildings will primarily be
maintenance projects, will account for $46.8 million. About
invested in preservation and capital maintenance of existing City facilities. Improvements to preserve and
rehabilitate the City’s wastewater system will be funded with $13.1 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 $13.5 million. Approximately $6.6 million in anticipated
capital spending will be for parks and open space projects.
In April 2011, the City’s Executive Team reviewed and approved the Multi-Year Financial Plan (MYFP) for FY12
to FY17. The MYFP was subsequently presented to the Mayor and the City’s Budget Committee. The Multi-Year
Financial Plan is an annual compilation of significant but unfunded challenges and opportunities that are likely to
4
occur over the next six 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 Financial Forecast, other project or
service specific strategic plans, and the annual budget process. A wide range of unfunded needs, challenges and
opportunities, are included in the MYFP, including several high-priority items. The MYFP includes General Fund
and other current service funding shortfalls, preservation and maintenance of existing City assets and facilities,
and implementation of adopted plans or policies. The plan also identifies important emerging issues that may
have a financial impact on the City.
The FY12-17 MYFP identified a total of about $281.0 million in unfunded challenges and opportunities that may
occur within the next six years. Of this amount, $134.1 million is for the following high-priority items:
General Fund shortfall;
Ambulance Transport Fund shortfall;
Parking Fund stabilization;
Parks and Open Space operations and maintenance;
Deferred maintenance of City facilities;
Echo Hollow/Sheldon Pool preservation;
Pavement Preservation backlog;
Envision Eugene implementation; and
Additional jail beds.
All of these high-priority items would need to be funded on an ongoing basis in order for the City’s budget to
become a truly sustainable, rather than merely stable, in the long-run.
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 Affordability Study that is 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 the ability of the community to pay for that debt. The Budget Committee adopted a debt policy
limit of net direct debt of no more than 1% of real market value of property. The Debt Affordability Study
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 is projected to
be 0.17% by the end of FY12.
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 spring of 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 presentenvironmental, economic, and social needs without compromising the ability
of future generations to meet their own needs.
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6
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CITY OF EUGENE, OREGON
Eugene City Hall
777 Pearl Street
Eugene, Oregon 97401
Mayor and City Council as of June 30, 2011
Term Expires
Name
Mayor:Kitty Piercy January 2013
Councilors: George Brown (Ward 1) January 2013
Betty Taylor (Ward 2) January 2013
Alan Zelenka (Ward 3) January 2015
George Poling (Ward 4) January 2015
Mike Clark (Ward 5) January 2015
Pat Farr (Ward 6) January 2015
Andrea Ortiz (Ward 7) January 2013
Chris Pryor (Ward 8) January 2013
Principal Officials
Jon R. Ruiz, City Manager
Sarah Medary, Assistant City Manager
Glenn Klein, City Attorney
Kristie Hammitt, Central Services Executive Director
Randall B. Groves, Fire and Emergency Medical Services Chief
Renee Grube, Acting Library, Recreation, and Cultural Services Executive Director
Sarah Medary, Acting Planning and Development Executive Director
Pete Kerns, Chief of Police
Kurt Corey, Public Works Executive Director
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FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Eugene, Oregon
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of City of
Eugene, Oregon (“the City”) as of and for the year ended June 30, 2011, which collectively
comprise the City’s basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City’s management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and the significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City, as of June 30, 2011, and
the respective changes in financial position, and cash flows, where applicable, thereof for the
year then ended in conformity with accounting principles generally accepted in the United States
of America.
In accordance with Government Auditing Standards, we have also issued our report dated
December 15, 2011, on our consideration of the City’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on the internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards and
is important for assessing the results of our audit.
11
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis (pages 13 through 22) and the schedule of pension
funding progress and the schedule of OPEB funding progress (page 79), be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section (pages 1
through 10); budgetary comparison information (pages 77, 78, and 80); other supplementary
information (pages 81 through 127); and statistical tables section (pages 129 through 149) are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-
133,Audits of States, Local Governments, and Non-Profit Organizations (pages 164 through
166), and is also not a required part of the basic financial statements. The budgetary comparison
information, other supplementary information, and the schedule of expenditures of federal awards
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the financial statements. The information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the
financial statement themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the basic financial statements taken as a whole.
The introductory and statistical tables have not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
ISLER CPA
By Gary Iskra, CPA, a member
Eugene, Oregon
December 15, 2011
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Management’s Discussion and Analysis
The management of the City of Eugene, Oregon (City) presents this narrative overview and analysis to facilitate both a
short and a long-term analysis of the financial activities of the City for the fiscal year ended June 30, 2011. 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 auditors’ report. Additional information outside the scope of this analysis can
be found in the Letter of Transmittal.
Financial Highlights
The City’s total assets at June 30, 2011 increased $21.8 million from $939.3 million to $961.1 million, or 2.3% from
the prior year. The primary cause for the increase in total assets was the addition of $8.8 million in receivables and
$15.7 million in cash and investments.
The City’s total liabilities increased $0.7 million from $160.6 million to $161.3 million.
The net assets of the City (assets less liabilities) at June 30, 2011 increased $21.2 million from $778.6 million to
$799.8 million from the prior year. Total net assets of $117.2 million are unrestricted.
At June 30, 2011, the City’s governmental funds reported combined ending fund balances of $102.8 million, an
increase of $6.8 million in comparison to the prior year. Approximately $99.1 million is available for spending at the
government’s discretion, subject to reporting fund limitations.
The General Fund’s spendable fund balance at the end of the current fiscal year was $45.0 million, or 40.7% of
General Fund expenditures.
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 Assets presents information on all of the City’s assets and liabilities, with the difference between
the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net assets changed during the most recent
fiscal year. All changes in net assets 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
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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 ensure and
demonstrate 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. Such information may
be useful in evaluating a government’s near-term requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government-wide 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 22 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 four
major funds: General Fund, Community Development Special Revenue Fund, General Capital Projects Fund, and the
Systems Development Capital Projects Fund. Data from the other 21 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-6, 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 income
determination. 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 and liabilities have been included with the governmental activities in the
government-wide financial statements.
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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 though 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 schedules of
property tax and bonded debt transactions follow the required supplementary information in this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case
of the City, assets exceeded liabilities by $799.8 million at the close of the fiscal year ending June 30, 2011.
City of Eugene's Net Assets
Governmental ActivitiesBusiness-type ActivitiesTotal
201120102011201020112010
Capital assets$413,680,953408,038,730241,534,489243,845,409655,215,442651,884,139
Other assets261,994,371244,339,38643,890,35843,046,596305,884,729287,385,982
Total assets 675,675,324652,378,116285,424,847286,892,005961,100,171939,270,121
Noncurrent liabilities112,428,124104,767,637267,4674,507,516112,695,591109,275,153
Other liabilities41,610,70541,121,2057,007,86810,235,92748,618,57351,357,132
Total liabilities154,038,829145,888,8427,275,33514,743,443161,314,164160,632,285
Net assets:
Invested in capital assets,
net of related debt363,812,593368,493,364241,534,490239,045,916605,347,083607,539,280
Restricted65,649,03656,191,50511,632,5569,160,56677,281,59265,352,071
Unrestricted92,174,86681,804,40524,982,46623,942,080117,157,332105,746,485
Total net assets$521,636,495506,489,274278,149,512272,148,562799,786,007778,637,836
The largest portion of the City’s net assets is its investment in capital assets, less any related debt used to acquire
these assets that are still outstanding. Although the City’s investment in its capital assets is reported net of related debt,
the resources needed to repay this debt must be provided from other sources since the capital assets themselves
cannot be used to liquidate these liabilities.
An additional portion of the City’s net assets, $77.3 million (9.7%), represents resources that are subject to external
restrictions on how they may be used. The remaining balance of net assets $117.2 million (14.6%) are unrestricted and
may be used to meet the government’s ongoing obligations to citizens and creditors.
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City of Eugene's Changes in Net Assets
Governmental ActivitiesBusiness-type ActivitiesTotal
Revenues:201120102011201020112010
Program revenues:
Fees, fines, and charges for services$42,595,75330,373,91753,186,96550,616,34595,782,71880,990,262
Operating grants and contributions17,235,07613,996,242295,559147,10217,530,63514,143,344
Capital grants and contributions8,623,6328,668,9695,927,86214,113,73414,551,49422,782,703
General revenues:
Taxes102,739,643103,954,17100102,739,643103,954,171
Grants and contributions not restricted
to specific programs3,291,0023,230,928003,291,0023,230,928
Contributions in lieu of taxes13,762,18112,342,9580013,762,18112,342,958
Franchise fees on telecom
providers revenues10,954,4178,653,0360010,954,4178,653,036
Unrestricted investment earnings1,170,7791,823,094198,099292,1391,368,8782,115,233
Total revenues200,372,483183,043,31559,608,48565,169,320259,980,968248,212,635
Expenses:
Central services9,759,9108,377,766009,759,9108,377,766
Fire and emergency medical services27,260,06326,737,2590027,260,06326,737,259
Library, recreation, and cultural services29,249,22328,956,8940029,249,22328,956,894
Planning and development32,208,70419,833,1610032,208,70419,833,161
Police47,645,36544,801,3670047,645,36544,801,367
Public works29,775,68028,550,5110029,775,68028,550,511
Interest on long-term debt6,280,1586,415,984006,280,1586,415,984
Ambulance transport005,669,2045,737,0995,669,2045,737,099
Municipal airport0011,031,43410,404,01811,031,43410,404,018
Parking services005,517,1074,567,1105,517,1074,567,110
Stormwater utility0013,084,70212,318,84813,084,70212,318,848
Wastewater utility0021,351,24720,588,11521,351,24720,588,115
Total expenses182,179,103163,672,94256,653,69453,615,190238,832,797217,288,132
Increase (decrease) in net assets before transfers18,193,38019,370,3732,954,79111,554,13021,148,17130,924,503
Transfers(3,046,159)1,191,7873,046,159(1,191,787)00
Increase (decrease) in net assets after transfers15,147,22120,562,1606,000,95010,362,34321,148,17130,924,503
Net assets, July 1506,489,274485,927,114272,148,562261,786,219778,637,836747,713,333
Net assets, June 30$521,636,495506,489,274278,149,512272,148,562799,786,007778,637,836
Expenses above include the indirect expenses as allocated in Exhibit 2 of the basic financial statements.
Governmental activities.
The change in governmental activities before transfers decreased from $19.4 million in the
prior year to $18.2 million in the current year. The decrease of $1.2 million between the two years was driven by the
following factors:
Fees, fines, and charges for services, and operating grants and contributions increased $12.2 million and $3.2
million, respectively.
Planning and Development expenditures increased $12.4 million due to an $8.0 million contribution to Lane
Community college for construction of their new downtown campus, and $4.1 million in development loans.
Police expenditures increased $2.8 million.
This next chart compares program revenues and expenses for the individual governmental activities for the current
year. As the chart reflects, most governmental activities relied on general revenues to support the function.
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The next chart shows the percent of the total for each source of revenue supporting governmental activities.
Governmental Activities
Revenues by Source
Taxes
Fees, fines, and charges for services
6.9%
8.6%
4.3%
Operating grants and contributions
5.5%
1.6%
21.3%
0.6%
Contributions in lieu of taxes
Capital grants and contributions
Franchise fees on telecom providers revenues
51.2%
Grants and contributions not restricted to
specific programs
Unrestricted investment earnings
Business-type activities.
Business-type activities decreased the City’s net assets by $8.6 million before transfers.
The decrease was primarily driven by:
Capital grants and contributions decreased $8.2 million during the year, primarily due to a $9.1 million decrease
in Federal Aviation Administration grants.
The following chart compares program revenues to expenses by individual business-type activity for the current year.
In comparison to governmental activities, business-type activities typically recover their costs through program
revenues. In the current year, several of the business-type activities experienced lower than anticipated program
revenue.
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Business-type Activities
Program Revenues
Program Revenues and Expenses
Expenses
7.3
Ambulance transport
5.7
12.2
Municipal airport
11.0
5.3
Parking services
5.5
13.9
Stormwater utility
13.1
20.7
Wastewater utility
21.4
(in millions of dollars)
The chart below shows that 89.2% 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
Program Revenues and Expenses
Fees, fines, and charges for services
0.5%
9.9%
0.3%
Operating grants and contributions
Capital grants and contributions
89.3%
Unrestricted investment earnings
Capital assets
. The City’s investment in capital assets for its governmental and business-type activities as of June 30,
2011 amounted to $655.2 million (net of accumulated depreciation). The investment in capital assets includes land,
right-of-ways, 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). The total increase in the City’s investment in capital assets for the current fiscal year was 0.5%.
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City of Eugene's Capital Assets, Net of Accumulated Depreciation
Governmental ActivitiesBusiness-type ActivitiesTotal
201120102011201020112010
Land$69,611,01167,499,02413,834,86513,834,86583,445,87681,333,889
Construction in progress22,316,63623,684,5733,540,45814,144,10825,857,09437,828,681
Buildings and equipment138,962,587144,072,30339,017,36736,144,993177,979,954180,217,296
Improvements other
than buildings43,418,97440,722,52055,404,20247,581,16598,823,17688,303,685
Storm sewers and
trunk sewers00129,737,598132,140,278129,737,598132,140,278
Infrastructure139,371,745132,060,31000139,371,745132,060,310
$413,680,953408,038,730241,534,490243,845,409655,215,443651,884,139
Major capital asset additions during the current fiscal year included infrastructure and improvements other than
buildings.
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 current fiscal year, the City had total liabilities of $161.3 million. Of this amount,
$107.6 million represented outstanding bonded indebtedness. Outstanding bonded debt included $32.8 million in
general obligation bonds to be serviced by general property taxes, $0.6 million in certificates of participation to be
serviced by general property taxes, $0.9 million in limited tax improvement bonds to be serviced by property owners
subject to the improvements, and $64.1 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 $1.2 million in
certificates of participation serviced by specific fund revenues and $7.9 million in tax increment bonds to be repaid from
tax increment revenues.
City of Eugene's Bonded Debt
Governmental ActivitiesBusiness-type ActivitiesTotal
201120102011201020112010
General obligation bonds$32,844,16435,389,4140032,844,16435,389,414
Certificates of participation 1,820,0002,160,000001,820,0002,160,000
Limited tax bonds 65,030,28164,862,22304,810,00065,030,28169,672,223
Tax increment bonds7,900,0000007,900,0000
Deferred amounts(33,274)(17,799)0(10,507)(33,274)(28,306)
$107,561,171102,393,83804,799,493107,561,171107,193,331
The City’s total bonded debt increased by $0.4 million (0.3%) during the current fiscal year, due to $7.9 million in new
tax increment bonds issued offset by the $4.8 million refunding of the Broadway Garages limited tax bonds and
scheduled debt payments.
Moody’s Investors Service rates the City’s public bond issues. The City’s most recent ratings from Moody’s are as
follows:
Aa1 for general obligation bonds (November 2011) with the following exceptions:
The General Obligation Refunding Bonds, Series 2006 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 April 2001, 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 Aa1.
The General Obligation Fire Projects Bonds, Series 2002 are insured by MBIA Insurance Corporation and were
rated Aaa at issuance. Subsequent to issuance, MBIA Insurance Corporation was downgraded by Moody’s
Investors Service. MBIA Insurance Corporation is currently rated as B3.
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Aa2 for full faith and credit obligations, which includes the Atrium Obligations, the Santa Clara Fire Station
Obligations, and the Broadway Garages Limited Tax Bonds (November 2011).
The pension obligation bonds 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 Novemeber 2010,
Moody’s Investors Service upgraded the underlying rating on Oregon Local Governments Limited Tax Pension
Obligations, Series 2002 to Aa3 from A3 in conjuction with a rating methodology change related to pool financings.
In April 2001, 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%.
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 $32.8 million in general obligation debt applicable to this limit is well
below the $638.7 million ceiling. The City’s net direct general obligation bonded debt per capita is $202.
Additional information on the City’s bonded debt can be found in the Notes to Basic Financial Statements (Note 4J).
Fund-based Financial Analysis
As previously discussed, the City uses fund accounting to ensure and demonstrate 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 financing
requirements.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$102.8 million, an increase of $6.8 million in comparison to the prior year. Approximately 96.4% of this total amount
($99.1 million) constitutes fund balance which is available for spending at the government’s discretion, subject to
reporting fund limitations. The remainder of fund balance ($3.7 million) is nonspendable because of the following: 1)
prepaid expenditures, 2) debt service, 3) inventories, and 4) assets held for resale.
The fund balance of the City’s General Fund increased $6.1 million from $39.9 million to $46.0 million during the current
fiscal year. The increase was caused by a $8.5 million in excess revenues over expenditures offset by net transfers of
$2.4 million.
The fund balance in the Community Development Fund increased $0.5 million from $2.1 million to $2.6 million during
the current fiscal year. The increase was primarily due to $1.2 million excess of revenues over expenditures offset by
$0.7 million in other financing uses.
The fund balance in the General Capital Projects Fund increased $0.6 million from $11.8 million to $12.4 million during
the current fiscal year. The increase in the fund balance was primarily caused by $0.5 million in revenues, $3.4 million
in transfers, and $2.5 million in debt proceeds, offset by $5.7 million in capital outlay expenditures.
The fund balance in the Systems Development Capital Projects Fund increased $0.4 million from $5.3 million to $5.7
million during the current fiscal year. The increase was due to $2.5 million in revenues offset by $2.1 million in
expenditures.
.
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 assets and its percent to total net assets of each proprietary fund are as follows:
$ 1.8 million (67.8%)
Ambulance Transport
3.5 million (3.7%)
Municipal Airport
0.1 million (0.6%)
Parking Services
8.1 million (14.6%)
Stormwater Utility
3.8 million (3.9%)
Wastewater Utility
20
Total business-type net assets increased $5.1 million in the current fiscal year. Significant issues regarding proprietary
funds are as follows:
The Ambulance Transport Fund reported a $1.2 million increase in net assets. The increase was mainly due to
$1.5 million in operating income that was offset by $0.3 million in transfers out.
The Municipal Airport Fund reported a $1.2 million increase in net assets. The increase was due to a $4.3 million in
contributions related to FAA grants offset by $3.2 million in operating losses.
The Parking Services Fund reported a $2.9 million increase in net assets. The increase was due to net transfers of
$3.4 million offset by losses of $0.5 million.
The Stormwater Utility Fund reported a $0.7 million increase in net assets. The increase was principally due to
$0.4 million in operating losses offset by $1.1 million in capital contributions.
The Wastewater Utility Fund reported a $0.9 million decrease in net assets. The decrease was mainly due to $1.5
million in operating losses that were offset by $0.6 million in capital contributions.
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 budget differs from the original budget in that it contains carry-forward appropriations for various
programs and projects, and supplemental appropriations approved during the fiscal year. The final fiscal year 2011
budget for the General Fund was increased by $6.0 million. The primary reasons for this increase are as follows:
$2.8 million increase to police, including $1.6 million for grant-funded activities, $0.7 million in fire dispatch
services, and $0.4 million in carry-forward appropriations.
$0.7 million increase to central services, including $0.4 million in carry-forward appropriations and $0.2
million for additional jail funding.
$0.4 million increase to library, recreation, and cultural services, including $0.2 million for grant funded-
activities and $0.1 million in carry-forward appropriations.
$0.3 million increase in carry-forward appropriations in planning and development.
These changes were funded primarily by an increase of $2.0 million in intergovernmental revenues and $3.1 million in
unspent resources from the prior year.
The net increase of $5.8 million in budget-basis fund balance for the year ended June 30, 2011 was a significant
improvement over the projected deficit of $1.5 million in the General Fund final amended budget. Actual revenues were
$1.3 million lower than budget. Although tax revenues were $1.2 million higher than anticipated, intergovernmental
revenues were $1.3 million below budget projections and charges for services and licenses and permits revenues both
came in $0.7 million below budget. On the expenditure side, departments underspent their budgets by a total of $8.5
million. The significant changes were in Police ($2.9 million), Fire and Emergency Medical Services ($1.7 million),
Central Services ($1.6 million), and Planning and Development ($0.7 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 are the major assumptions used in
developing the FY 2012 budget:
Interest rates on investments will be 0.65%.
Property tax revenue is expected to decrease 2.7% in FY 2012 due to expiration of the Library Local Option Levy.
Salaries for non-represented employees and the other collectively bargained agreements will increase 1.0% - 2.1%.
Health benefit rates will increase by 8.7%.
PERS and OPSRP costs are expected to be 25.5% and 21.7% of payroll, respectively.
21
During the current fiscal year, budget-basis fund balance in the General Fund increased to $44.9 million, an increase of
$5.8 million over the prior year. A portion of that increase was due to unanticipated revenues and underspending during
the year. City staff will be submitting a FY 2012 supplemental budget to the City Council in December to determine how
to allocate the unanticipated ending fund balance.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for those with an interest in the
government’s finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to:
Fionan Cronin, CPA
Assistant Finance Director
City of Eugene
th
100 West 10 Avenue, Suite 400
Eugene, Oregon 97401
22
BASIC FINANCIAL STATEMENTS
City of Eugene, Oregon
Exhibit 1
Statement of Net Assets
June 30, 2011
(amounts in dollars)
GovernmentalBusiness-type
AssetsActivitiesActivitiesTotal
Current assets
Equity in pooled cash and investments161,521,53428,140,592189,662,126
Cash with fiscal agent517,7340517,734
Receivables (net of allowance)37,439,3295,483,54442,922,873
Internal balances(7,571,538)7,571,5380
Due from other governments7,077,8061,663,0158,740,821
Inventories967,709805,7011,773,410
Prepaids and deposits1,169,24401,169,244
Assets held for resale1,869,03801,869,038
Total current assets202,990,85643,664,390246,655,246
Noncurrent assets
Loans and notes receivable0225,968225,968
Deferred charges855,5240855,524
Pension assets58,147,991058,147,991
Capital assets:
Land and construction in progress91,927,64717,375,323109,302,970
Other capital assets (net of accumulated depreciation)321,753,306224,159,167545,912,473
Total noncurrent assets472,684,468241,760,458714,444,926
Total assets675,675,324285,424,848961,100,172
Liabilities
Current liabilities
Accounts payable4,210,8031,262,1515,472,954
Wages payable7,616,2961,648,0249,264,320
Compensated absences payable8,152,2091,683,3529,835,561
Due to other governments1,165,378658,8351,824,213
Claims payable10,916,609010,916,609
Deposits1,461,718713,4192,175,137
Interest payable457,4160457,416
Unearned revenue2,154,1771,042,0883,196,265
Certificates of participation payable355,0000355,000
Bonds payable5,121,09905,121,099
Total current liabilities41,610,7057,007,86948,618,574
Noncurrent liabilities
Compensated absences payable120,187175,076295,263
Notes and contracts payable6,118,00006,118,000
General obligation bond and revolving credit facility1,465,00001,465,000
Bonds payable (net of unamortized discount/premium)100,620,0720100,620,072
Net OPEB obligation4,104,86592,3914,197,256
Total noncurrent liabilities112,428,124267,467112,695,591
Total liabilities154,038,8297,275,336161,314,165
Net assets
Invested in capital assets (net of related debt)371,712,593241,534,490613,247,083
Restricted for:
Capital projects24,756,65611,625,34536,382,001
Debt service2,971,9157,2112,979,126
Community development20,259,962020,259,962
Urban renewal3,346,92603,346,926
Other purposes6,413,57706,413,577
Unrestricted92,174,86624,982,466117,157,332
Total net assets521,636,495278,149,512799,786,007
The accompanying notes are an integral part of the financial statements.
23
City of Eugene, Oregon
Exhibit 2
Statement of Activities
For the fiscal year ended June 30, 2011
(amounts in dollars)
Net (Expense) Revenue and
Program RevenuesChanges in Net Assets
Fees,
IndirectFines, andOperatingCapital
DirectExpensesCharges forGrants andGrants andGovernmentalBusiness-type
AllocationServicesContributionsContributionsActivitiesActivitiesTotal
Expenses
Functions/Programs
Governmental activities:
Central services28,293,113(18,533,203)7,865,208365,68636,591(1,492,425)0(1,492,425)
Fire and emergency medical services23,790,4333,469,6302,243,12590,9930(24,925,945)0(24,925,945)
Library, recreation, and cultural services26,569,5412,679,6826,175,9731,412,0220(21,661,228)0(21,661,228)
Planning and development30,838,0811,370,62315,265,5475,883,9030(11,059,254)0(11,059,254)
Police41,768,2265,877,1393,886,1601,318,578155,526(42,285,101)0(42,285,101)
Public works28,216,5511,559,1297,159,7408,163,8948,431,515(6,020,531)0(6,020,531)
Interest on long term debt6,280,1580000(6,280,158)0(6,280,158)
Total governmental activities185,756,103(3,577,000)42,595,75317,235,0768,623,632(113,724,642)0(113,724,642)
Business-type activities:
Ambulance transport5,122,204547,0007,305,0570001,635,8531,635,853
Municipal airport10,548,434483,0007,955,7026,8294,274,47601,205,5731,205,573
Parking services5,262,107255,0005,058,011211,54600(247,550)(247,550)
Stormwater utility12,201,702883,00012,752,16577,1841,093,3100837,957837,957
Wastewater utility19,942,2471,409,00020,116,0310560,0760(675,140)(675,140)
Total business-type activities53,076,6943,577,00053,186,966295,5595,927,86202,756,6932,756,693
Total activities238,832,797095,782,71917,530,63514,551,494(113,724,642)2,756,693(110,967,949)
General revenues:
Property taxes97,962,592097,962,592
Transient room tax1,658,16901,658,169
Local motor vehicle fuel tax3,118,88203,118,882
Contributions in lieu of taxes13,762,181013,762,181
Franchise fees on telecom provider's revenues10,954,417010,954,417
Grants and contributions not restricted to specific programs3,291,00203,291,002
Unrestricted investment earnings1,170,778198,0991,368,877
Transfers(3,046,158)3,046,1580
Total general revenues and transfers128,871,8633,244,257132,116,120
Change in net assets15,147,2216,000,95021,148,171
Net assets, July 1, 2010506,489,274272,148,562778,637,836
Net assets, June 30, 2011521,636,495278,149,512799,786,007
The accompanying notes are an integral part of the financial statements.
24
City of Eugene, OregonExhibit 3
Balance Sheet
Governmental Funds
June 30, 2011Systems
(amounts in dollars)GeneralDevelopmentOtherTotal
CommunityCapitalCapitalGovernmentalGovernmental
GeneralDevelopmentProjectsProjectsFundsFunds
Assets
Equity in pooled cash and investments49,672,3732,066,78812,017,9945,461,73933,621,676102,840,570
Cash with fiscal agent12,2550505,47900517,734
Receivables:
Interest1,009,30343,62300181,9461,234,872
Taxes5,065,8610001,043,2716,109,132
Accounts2,737,91717,2432002,026,350912,4335,694,143
Assessments00001,336,8971,336,897
Loans and notes020,983,93605,1243,102,63424,091,694
Allowance for uncollectibles(5,135)000(55,741)(60,876)
Due from other funds61,065000061,065
Due from other governments2,533,934769,711164,43403,303,1326,771,211
Inventories0000615,555615,555
Prepaids and deposits1,066,47300071,7901,138,263
Assets held for resale00001,869,0381,869,038
Total assets62,154,04623,881,30112,688,1077,493,21346,002,631152,219,298
Liabilities and fund balances
Liabilities
Accounts payable644,577118,732251,41534,9452,174,0343,223,703
Wages payable5,879,31437,229010,491751,8246,678,858
Due to other governments541,233105,7080492381,1481,028,581
Deposits514,759000858,6501,373,409
Deferred revenue8,530,09721,004,59601,696,4945,866,99737,098,184
Total liabilities16,109,98021,266,265251,4151,742,42210,032,65349,402,735
Fund balances
Nonspendable1,066,4730002,636,3833,702,856
Restricted22,174,8132,615,036817,9295,750,79122,076,33953,434,908
Committed000011,257,25611,257,256
Assigned17,009,910011,618,7630028,628,673
Unassigned5,792,87000005,792,870
Total fund balances46,044,0662,615,03612,436,6925,750,79135,969,978102,816,563
Total liabilities and fund balances62,154,04623,881,30112,688,1077,493,21346,002,631
Reconciliation to the Statement of Net Assets:
The Statement of Net Assets reports receivables at their net realizable value. However, receivables not available to pay for
current-period expenditures are deferred in governmental funds.34,157,957
Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Assets at their net
depreciable value.392,731,764
All liabilities are reported in the Statement of Net Assets. However, if they are not due and payable in the current period, they
are not recorded in governmental funds.(56,096,152)
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 assets are reported along with governmental activities
in the Statement of Net Assets.48,026,363
Net assets of governmental activities521,636,495
The accompanying notes are an integral part of the financial statements.
25
Exhibit 4
City of Eugene, Oregon
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the fiscal year ended June 30, 2011
(amounts in dollars)
Systems
GeneralDevelopmentOtherTotal
CommunityCapitalCapitalGovernmentalGovernmental
GeneralDevelopmentProjectsProjectsFundsFunds
Revenues
Taxes94,477,14300022,003,573116,480,716
Licenses and permits5,664,38600010,583,41616,247,802
Intergovernmental4,426,1215,231,175389,246013,014,46723,061,009
Rental income96,9420097,915188,409383,266
Charges for services10,625,90811,07402,282,3835,242,18718,161,552
Fines and forfeits2,864,39000065,0102,929,400
Special assessments00001,100,2521,100,252
Repayment of revolving loans01,160,88500259,0221,419,907
Miscellaneous765,299709,382121,29695,5942,390,4184,081,989
Total revenues118,920,1897,112,516510,5422,475,89254,846,754183,865,893
Expenditures
Current - departmental:
Central services14,084,747115,0009,87215,0003,964,18318,188,802
Fire and emergency medical services23,278,823000228,54623,507,369
Library, recreation, and cultural services21,472,1030004,126,58925,598,692
Planning and development5,508,7485,663,266067,32610,895,65222,134,992
Police40,187,0740002,357,72142,544,795
Public works5,607,70100198,1809,356,87815,162,759
Debt service:
Principal210,00000011,957,80112,167,801
Interest31,75520,486001,518,9341,571,175
Issuance costs000050,69650,696
Capital outlay0101,6435,748,9121,779,81615,752,23723,382,608
Contribution of land held for resale0000538,929538,929
Intergovernmental00008,000,0008,000,000
Total expenditures110,380,9515,900,3955,758,7842,060,32268,748,166192,848,618
Excess (deficiency) of
revenues over expenditures8,539,2381,212,121(5,248,242)415,570(13,901,412)(8,982,725)
Other financing sources (uses)
Proceeds of debt issuance002,475,000015,290,00017,765,000
Proceeds of note issuance03,412,0000003,412,000
Transfers in3,560,83003,369,30005,333,62112,263,751
Transfers out(5,960,707)(4,149,682)00(7,548,938)(17,659,327)
Total other financing sources (uses)(2,399,877)(737,682)5,844,300013,074,68315,781,424
Net change in fund balances6,139,361474,439596,058415,570(826,729)6,798,699
Fund balances, July 1, 201039,904,7052,140,59711,840,6345,335,22136,796,70796,017,864
Fund balances, June 30, 201146,044,0662,615,03612,436,6925,750,79135,969,978102,816,563
The accompanying notes are an integral part of the financial statements.
26
Exhibit 5
City of Eugene, Oregon
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the fiscal year ended June 30, 2011
(amounts in dollars)
Net change in fund balances - total governmental funds6,798,699
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.8,414,793
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.2,014,773
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.(32,919)
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.5,591,562
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 Assets.(9,009,199)
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.(112,360)
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 certain internal service funds is reported with governmental activities.1,481,872
Change in net assets of governmental activities15,147,221
The accompanying notes are an integral part of the financial statements.
27
28
29
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30
Exhibit 7
City of Eugene, Oregon
Statement of Revenues, Exenses, and Chanes in Fund Net Assets
pg
Proprietary Funds
For the fiscal year ended June 30, 2011
(amounts in dollars)
Business-type Activities
Governmental
Enterprise Funds
Activities
Total
AmbulanceMunicipalParkingStormwaterWastewaterInternal Service
TransportAirportServicesUtilityUtilityTotalsFunds
Operating revenues
Licenses and permits00085,211085,211382
Intergovernmental06,829211,54677,1840295,559276,079
Rental income03,294,520517,27228,54040,2923,880,6241,077,761
Charges for services7,234,3044,624,6363,563,14512,610,02920,011,70248,043,81658,058,972
Fines and forfeits07,494964,19303,350975,0370
Miscellaneous70,75329,05213,40128,38560,687202,278298,810
Total operating revenues7,305,0577,962,5315,269,55712,829,34920,116,03153,482,52559,712,004
Operating expenses
Personnel services3,957,4113,860,0861,275,1286,792,97210,417,65826,303,25515,234,881
Contractual services358,428811,3701,640,3682,153,7181,660,6736,624,5573,947,766
Materials and supplies257,582669,944164,937433,1981,791,0903,316,7514,373,249
Maintenance568,316368,9711,118,8191,463,2311,595,6705,115,0071,648,375
Utilities11,971394,42825,92269,831870,9681,373,1203,028,292
Rent01,33140,93943,21456,723142,207434,049
Taxes0022,9920022,99212,546
Insurance34,049103,26963,08463,996131,508395,9061,977,305
Claims00000019,967,474
Central business functions547,000483,000255,000883,0001,409,0003,577,0001,859,000
Depreciation45,3044,483,664798,1131,377,5373,694,64010,399,2583,115,247
Total operating expenses5,780,06111,176,0635,405,30213,280,69721,627,93057,270,05355,598,184
Operating income (loss)1,524,996(3,213,532)(135,745)(451,348)(1,511,899)(3,787,528)4,113,820
Nonoperating revenues (expenses)
Interest revenue8,27496,00612665,12928,564198,099437,185
Interest expense00(313,031)00(313,031)(4,550,626)
Amortization of issuance costs00(11,633)00(11,633)(39,263)
Total nonoperating revenues (expenses)8,27496,006(324,538)65,12928,564(126,565)(4,152,704)
Income (loss) before capital
contributions and transfers1,533,270(3,117,526)(460,283)(386,219)(1,483,335)(3,914,093)(38,884)
Capital contributions04,274,47601,105,300560,0765,939,852100,371
Transfers in005,252,084005,252,0842,361,407
Transfers out(348,615)0(1,869,300)00(2,217,915)0
Change in net assets1,184,6551,156,9502,922,501719,081(923,259)5,059,9282,422,894
Total net assets, July 1, 20101,495,62193,773,69215,867,89254,826,22799,493,55053,236,072
Total net assets, June 30, 20112,680,27694,930,64218,790,39355,545,30898,570,29155,658,966
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.941,022
Change in net assets of business-type activities6,000,950
The accompanying notes are an integral part of the financial statements.
31
32
33
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
Notes Index
(1) Summary of Significant Accounting Policies Page(s)
(A) The Financial Reporting Entity 35
(B) Organization and Operation 35
(C) Government-wide and Fund Financial Statements 35 - 36
(D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation 36 - 40
(E) Risk Management 40
(F) Equity in Pooled Cash and Investments 40 - 41
(G) Receivables 41
(H) Interfund Receivables and Payables 41
(I) Inventories and Prepaid Items 41
(J) Capital Assets 42 - 43
(K) Capitalized Interest 43
(L) Compensated Absences 43
(M) Noncurrent Obligations 43
(N) Fund Balance 43 - 44
(O) Indirect Expenses Allocation 45
(2) Reconciliation of Government-wide and Fund Financial Statements
(A) Explanation of Differences Between the Government-wide
Statement of Net Assets and the Governmental Fund Balance Sheet 45 - 46
(B) Explanation of Differences Between the Government-wide
Statement of Activities and the Fund Statement of Revenues, Expenditures
and Changes in Fund Balances 46 - 47
(3) Stewardship, Compliance, and Accountability
(A) Budgetary Information 48
(B) Overexpenditures of Appropriations 48
(4) Detailed Notes on All Funds
(A) Equity in Pooled Cash and Investments 48 - 51
(B) Receivables 52
(C) Interfund Receivables, Payables, and Transfers 53
(D) Due From Other Governments 54
(E) Capital Assets 55 - 57
(F) Deferred Revenue 58
(G) Operating Leases 58 - 59
(H) Bond Anticipation Notes 59
(I) Noncurrent Liabilities 59 - 67
(5) Other Information
(A) Risk Management 68
(B) Joint Ventures 69
(C) Retirement Plan 69 - 71
(D) Other Post-employment Benefits (OPEB) 72 - 75
(E) Contingencies 75
(F) Outstanding Encumbrances 75
(G) Subsequent Events 75
(H) Conduit Debt 75
34
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
June 30, 2011
(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.
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 the services of the Agency are exclusively for the benefit of the City, 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. Separate financial statements for the Agency can be obtained
from the Finance Division of the City of Eugene.
(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, liabilities, fund balances (net assets), revenues, and expenditures (expenses).
(C) Government-wide and Fund Financial Statements
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.
continued
35
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(C) Government-wide and Fund Financial Statements, continued
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.
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 and liabilities are included in the Statement of Net Assets
and the Statement of Fund Net Assets. The increases and decreases in those net assets are presented in the
government-wide Statement of Activities and in the proprietary fund Statement of Revenues, Expenses, and
Changes in Fund Net Assets. 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.
The City's government-wide and proprietary fund accounting and financial reporting practices are based on all
applicable GASB pronouncements as well as the following pronouncements issued on or before November 30,
1989, unless those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting
Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and
Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedures. The City has elected not
to apply FASB guidance issued subsequent to November 30, 1989 to business-type activities and to enterprise
funds, unless specifically adopted by the GASB.
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.
continued
36
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
Government-wide and Proprietary Fund Financial Statements, continued
Operating revenues and operating expenses are intermediate components within the proprietary fund
Statement of Revenues, Expenses, and Changes in Fund Net Assets, 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, and depreciation. 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 generally reports only current assets and current liabilities; and the
Statement of Revenues, Expenditures, and Changes in Fund Balances presents increases and decreases in
net current assets. 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 revenues. 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."
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 deferred 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 offset by deferred revenues.
continued
37
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
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 income 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 to expending 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 Capital Projects Fund
The General Capital Projects Fund is used to account for the financial resources that are restricted,
committed, or assigned to expending 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.
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 upon the determination of net income.
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.
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
Proprietary Funds, continued
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.
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.
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 Local Option Levy
Library, Parks, and Recreation
Public Safety Answering Point
Road
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
Other Governmental Funds, continued
Special Revenue Funds, continued:
Solid Waste and Recycling
Special Assessment Management
Telecom Registration and Licensing
Urban Renewal Agency General
Urban Renewal Agency Riverfront
Debt Service Funds:
General Obligation
Library
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 Assets 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.
continued
40
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(F) Equity in Pooled Cash and Investments, continued
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.
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.
continued
41
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(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, right-of-way (included with land), buildings,
improvements, equipment, and infrastructure. The capitalization threshold for intangible assets is $50,000.
Intangible assets include copyrights, trademarks, and computer software.
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 consists of a regional airfield, and stormwater and wastewater
collection systems. As permitted by GASB 34, the City has limited the retroactive capitalization of
governmental fund infrastructure to fiscal years ending after June 30, 1980. Although the majority of such
infrastructure was placed in service before that date, it has not been included in these financial statements
since it has been substantially depreciated.
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 Assets.
Capital assets are depreciated unless they are inexhaustible in nature or have an indefinite useful life (e.g.,
land and right-of-ways). 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
useful life
Category
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. In accordance with the composite depreciation
method, no gain or loss is recorded upon disposal, but rather, cost is removed from the capital asset account
and charged to the accumulated depreciation account.
continued
42
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(J) Capital Assets, continued
Capital assets of proprietary funds are reported net of accumulated depreciation in the government-wide
Statement of Net Assets and the proprietary funds Statement of Fund Net Assets. 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 Assets. 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 Assets. 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, 2011, no
interest was capitalized on proprietary fund capital assets.
(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, premiums, and issuance costs 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.
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
Assets and as interest expense on the Statement of Activities.
(N) 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.
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.
continued
43
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(N) Fund Balance, continued
Resources that are constrained by the government’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 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, committed, or assigned within the General Fund. This classification is
also used to report any negative fund balance amounts in other governmental funds.
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.
Fund balances by classification for the year ended June 30, 2011 were as follows:
Systems
GeneralDevelopmentOtherTotal
CommunityCapitalCapitalGovernmentalGovernmental
DevelopmentProjectsProjectsFundsFunds
General
Fund balances
Nonspendable:
Inventories$0000615,555615,555
Prepaids and deposits1,066,47300071,7901,138,263
Assets held for resale00001,869,0381,869,038
Permanent balance000080,00080,000
Restricted:
Capital projects00817,9295,750,7917,561,46014,130,180
Community development02,615,0360002,615,036
Rental housing program0000207,803207,803
Cultural services914,8130003,685,0964,599,909
Debt service00001,812,4551,812,455
Road maintenance00002,125,8662,125,866
Solid waste and recycling0000801,937801,937
Unappropriated
ending fund balance21,260,000000021,260,000
Urban renewal00005,881,7225,881,722
Committed:
Construction Permits00001,733,3791,733,379
Special assessments00002,413,0952,413,095
Telecommunications00007,110,7827,110,782
Assigned:
Capital projects0011,618,7630011,618,763
Cultural services1,535,55100001,535,551
Reserve for encumbrances1,839,07700001,839,077
Reserve for next year's spending4,418,11300004,418,113
Reserve for revenue shortfall7,945,63800007,945,638
Other reserves1,271,53100001,271,531
Unassigned5,792,87000005,792,870
Total fund balances$46,044,0662,615,03612,436,6925,750,79135,969,978102,816,563
continued
44
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(O) 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 non-general 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.
(2) Reconciliation of Government-wide and Fund Financial Statements
(A) Explanation of Differences Between the Government-wide Statement of Net Assets and the Governmental
Fund Balance Sheet
The Balance Sheet for governmental funds (Exhibit 3) includes a reconciliation between total fund balances
and total net assets of governmental activities in the Statement of Net Assets (Exhibit 1). The following are
selected elements of that reconciliation.
The Statement of Net Assets 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
$34,157,957 difference are as follows:
Receivables:
Interest$1,184,469
Taxes5,908,242
Systems development charges1,691,370
Municipal court1,199,691
Assessments1,277,576
Loans and notes24,033,934
Subtotal35,295,282
Allowance for uncollectibles(1,137,325)
Net adjustment$34,157,957
Capital assets are not financial resources in governmental funds, but reported in the Statement of Net Assets at
their net depreciable value. The details of this $392,731,764 difference are as follows:
Capital assets (net of accumulated depreciation) reported
in the Statement of Net Assets - governmental activities column:
Land and construction in progress$91,927,647
Other capital assets (net of accumulated depreciation)321,753,306
Capital assets (net of accumulated depreciation) reported
in internal service funds included in the Statement of
Net Assets - governmental activities column(20,949,189)
Net adjustment$392,731,764
continued
45
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(2) Reconciliation of Government-wide and Fund Financial Statements, continued
(A) Explanation of Differences Between the Government-wide Statement of Net Assets and the Governmental
Fund Balance Sheet, continued
All liabilities are reported in the Statement of Net Assets. However, if they are not due and payable in the
current period, they are not recorded in governmental funds. The details of this $56,096,152 difference are as
follows:
Bonds payable (less: deferred charge for issuance costs)$(42,017,127)
Notes and contracts payable(6,118,000)
Accrued interest payable(175,824)
Compensated absences(7,412,061)
Net OPEB obligation(373,140)
Net adjustment$(56,096,152)
(B) Explanation of Differences Between the Government-wide Statement of Activities and the Fund 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 $8,414,793 difference are as follows:
Change in deferred revenue from the following sources:
Property taxes receivable$21,108
Special assessments receivable55,960
System development charges receivable1,182,689
Municipal court receivables571,870
Notes receivable6,811,357
Subtotal8,642,984
Change in the allowance for uncollectibles(228,191)
Net adjustment$8,414,793
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 $2,014,773 difference are as follows:
Donations of capital assets$2,014,773
continued
46
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(2) Reconciliation of Government-wide and Fund Financial Statements, continued
(B) Explanation of Differences Between the Government-wide Statement of Activities and the Fund Statement of
Revenues, Expenditures, and Changes in Fund Balances, continued
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
$32,919 difference are as follows:
Compensated absences$111,521
Net OPEB obligation(36,779)
Accrued interest(3,954)
Amortization of issuance costs(103,707)
Net adjustment$(32,919)
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
$5,591,562 difference are as follows:
Capital outlay$22,827,512
Depreciation expense(17,235,950)
Net adjustment5,591,562
$
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 Assets. The details of this $9,009,199 difference are
as follows:
Debt issued:
Issuance of general obligation bonds$(9,285,000)
Issuance of tax increment bonds(7,900,000)
Issuance of notes payable(3,412,000)
Issuance of limited tax bonds(580,000)
(21,177,000)
Principal payments:
General obligation debt11,830,250
Certificates of participation210,000
Limited tax bonds127,551
Net adjustment(9,009,199)
$
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.
Transfer of governmental
capital assets to proprietary funds$(112,360)
47
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(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 taxpayer
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, intergovernmental, and miscellaneous fiscal transactions.
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.
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 $17,718,556.
(B) Overexpenditures of Appropriations
For the year ended June 30, 2011, the Special Assessment Management Special Revenue Fund and the
Parking Services Enterprise Fund had budget-basis expenditures in excess of legal appropriations of $57,528
and $125,789, respectively.
(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 Assets, the Statement of Fund Net Assets, or the
Balance Sheet as "Equity in pooled cash and investments.” Cash and investments are comprised of the
following at June 30, 2011:
Cash on hand$55,609
Cash with fiscal agent517,734
Deposits with banks7,956,483
Investments181,650,034
$190,179,860
Deposits
At June 30, 2011, the City’s deposits with various financial institutions had a bank value of $10,706,159, which
included $4,011,784 in time certificates of deposits and $517,734 held by escrow companies (cash with fiscal
agent). 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.
continued
48
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
All City deposits not covered by FDIC insurance are covered by the Public Funds Collateralization Program
(PFCP) of the State of Oregon. The PFCP is a shared liability structure for participating bank depositories,
better protecting public funds though still not guaranteeing that all funds are 100% protected. A bank
depository is required to pledge collateral valued at least 10% of their quarter-end public fund deposits if they
are adequately capitalized. The Office of State Treasurer (OST) has identified the following exceptions to the
collateral calculation and any exception requires 100% collateralization.
A bank may not accept public fund deposits from one depositor in excess of their net worth. If the bank
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 bank’s net worth while working to eliminate that excess.
A bank 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 bank may only hold in excess of 30% of all aggregate public funds reported by all banks 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 banks
to pledge additional collateral up to 110% of the value of FDIC uninsured public fund deposits.In the event of a
bank failure, the entire pool of collateral pledged by all qualified Oregon public funds bank depositories is
available to repay deposits of public funds of government entities.
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be
returned to it. At June 30, 2011, the City had deposits of $750,000 insured by federal depository insurance and
$9,438,425 collateralized under the PFCP.
At June 30, 2011, the City had $517,734 in deposits (cash with fiscal agent) held by escrow companies that
were uninsured and uncollateralized.
Investments
As of June 30, 2011, the City held the following investments and maturities:
Weighted
average% of
Carryingmaturityinvestment
Investment typevaluein yearsportfolio
Corporate securities$17,310,0730.4569.5%
Local government investment pool40,304,2010.00322.2%
Municipal bonds39,165,9351.29221.6%
U.S. agency securities82,875,1451.08045.6%
U.S. treasury securities1,994,6801.1421.1%
Total181,650,0340.751100.0%
$
continued
49
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(A) Equity in Pooled Cash and Investments, continued
Interest Rate Risk
As a means of limiting its exposure to losses arising from rising interest rates, the City’s investment policy limits
investment as follows:
MaximumMaximum
% oflength
Investment typeportfolioto maturity
Bankers' acceptances25%6 months
Corporate securities35%18 months
Local government investment pool100%1 day
State and local government obligations50%3 years
U.S. agency securities100%3 years
U.S. agency securities - Temporary
Liquidity Guarantee Program (TGLP)25%December 31, 2012
U.S. treasury securities100%3 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 $43,117,180, which will increase
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.
Investments, continued
At June 30, 2011, the City’s investments were rated as follows:
Highest Rating From
Moody's Investors Service or Standard & Poor's Corporation
Investment typeTotalMIG 1Aaa/AAAAa/AAA/ANot rated
Corporate securities$17,310,0730017,310,07300
Local government
investment pool40,304,201000040,304,201
Municipal bonds39,165,9351,336,0972,842,13534,197,217790,4860
U.S. agency securities82,875,145082,875,145000
U.S. treasury securities1,994,68001,994,680000
Total$181,650,0341,336,09787,711,96051,507,290790,48640,304,201
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
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, 2011, the fair value
of the City’s deposits with the LGIP approximates cost. The OSTF financial statements are available at
http://www.ost.state.or.us/.
The LGIP’s portfolio concentration of credit risk at June 30, 2011 included: Corporate Notes (45.8%), U.S.
Treasury and Agency Securities (38.5%), Government Guaranteed Corporate Securities (10.6%), Commercial
Paper (2.7%), Bank Notes (1.2%), Certificates of Deposits (0.6%) and Municipal Bonds (0.6%). The credit risk
associated with the investments was: AAA rating (48.0%), AA rating (18.2%), A rating (32.5%), BBB rating
(0.2%), not rated (0.6%) and ratings withdrawn (0.5%).
Concentration of Credit Risk
The City’s policy for investing in individual issuers varies depending on the type of investments. Agency
securities are restricted to no more than 25% for any one issuer. No more than 25% of the total portfolio of
investments may be invested in a single issuer of bankers’ acceptances. Investments in commercial paper or
corporate bonds of any one issuer may not exceed 5% of the investment portfolio. Investments in the
Temporary Liquidity Guarantee Program (TLGP) are limited to 5% per bank. The combined limit for each bank
in certificates of deposits, bankers’ acceptances, corporate indebtedness, and TLGP is 10%.
continued
51
52
53
54
55
56
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:
Governmental activities:
Central services$169,984
Fire and emergency medical services1,066,044
Library, recreation, and cultural services2,200,708
Planning and development413,194
Police 829,331
Public works12,556,687
Capital assets held by the government's internal
service funds are charged to the various functions
based on their usage of the assets3,115,247
$20,351,195
Business-type activities:
Ambulance transport$45,304
Municipal airport4,483,664
Parking services798,113
Stormwater utility1,377,537
Wastewater utility3,694,640
$10,399,258
continued
57
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(F) Deferred Revenue
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. In addition, governmental funds and
proprietary funds report deferred revenue in connection with resources that have been received but not yet
earned. The various components of deferred revenue consist of the following:
Fund by type Unavailable Unearned Total
Property taxes receivable:
General $5,874,27505,874,275
Other governmental funds1,218,43501,218,435
Assessments receivable:
Other governmental funds1,275,76901,275,769
Systems development charges receivable:
Systems Development Capital Projects1,691,37001,691,370
Notes receivable:
Community Development Special Revenue20,926,175020,926,175
Systems Development Capital Projects5,12405,124
Other governmental funds3,071,56503,071,565
Other:
General1,199,6911,456,1312,655,822
Community Development Special Revenue078,42178,421
Ambulance Transport0742,785742,785
Municipal Airport0128,388128,388
Parking Services0167,011167,011
Stormwater Utility03,9033,903
Internal service funds0351,273351,273
Other governmental funds32,875268,353301,228
Total deferred revenue$35,295,2793,196,26538,491,544
(G) Operating Leases
The City conducts some of its operations from leased facilities located both inside and outside the central
business district. 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, 2011, for operating leases was $655,631. 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. These options enable the City to retain use of facilities in desirable operating
areas.
continued
58
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, 2011:
Fiscal year
ending June 30Rentals
2012$792,892
20131,029,030
20141,001,870
2015830,473
2016685,405
Total minimum future rentals$4,339,670
(H) Bond Anticipation Note
On November 3, 2009 the City entered into a Revolving Credit Facility with Bank of America, N.A. with an
authorized limit of $2,500,000. For each draw the City elects from either a LIBOR based taxable or tax exempt
interest rate. On June 30, 2011, the City elected to close this credit facility. Draws on this credit facility were
recorded as a liability of the Special Assessment Capital Projects Fund. The line of credit was available to
finance construction of local improvement projects which primarily benefit the property owners against whose
properties special assessments were levied.
Beginning Ending
balanceIncreaseDecreasebalance
Governmental activities
Revolving credit facility$829,318822,857(1,652,175)0
(I) Noncurrent Liabilities
General Obligation Bond and Revolving Credit Facility (Street)
On November 4, 2008, Eugene voters passed Measure 20-145, authorizing the City to issue a maximum of
$35,900,000 of general obligation (G.O.) bonds. The proceeds from the sale of the bonds are to be used for
street preservation. The City can issue the bonds in one or more series. The bonds can be issued to provide
interim financing and to refund the bonds that provide interim financing.
The City has a G.O. and revolving credit facility with Bank of America, N.A. which matures on June 1, 2012 and
has an authorized limit of $4,000,000. The City elects from either a LIBOR based taxable or tax exempt
interest rate for each draw. As of June 30, 2011, the City had a $0 balance on the credit facility with
$22,590,000 in authorized borrowing remaining.
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 (Street 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.
continued
59
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(I) Noncurrent Liabilities, continued
General Obligation Bond and Revolving Credit Facility (Street), continued
Beginning Ending
balanceIncreaseDecreasebalance
Governmental activities
G.O. bond and revolving
credit facility (Street)$06,810,000(6,810,000)0
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 and the
West Eugene Wetlands Education Center. The City can issue the bonds in one or more series. The bonds can
be issued to provide interim financing and to refund the bonds that provide interim financing.
On May 31, 2007, the City entered into a General Obligation Bond and Revolving Credit Facility with Bank of
America, N.A. currently bearing interest at 0.75% with a maturity date of June 1, 2012. 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, 2011, the City had a $1,574,164 balance on the credit
facility with $13,538,800 in authorized borrowing remaining.
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
is backed by the full faith and credit of the City and is included in the City’s G.O. bonded debt margin limit.
Beginning Ending
balanceIncreaseDecreasebalance
Governmental activities
G.O. bond and revolving credit
facility (POS)$684,4142,475,000(1,585,250)1,574,164
General Obligation Bonds
The City issues general obligation bonds to finance major construction projects in governmental and business-
type activities. G.O. bonds in governmental activities are backed by the full faith and credit 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% of real
market value per Oregon Revised Statutes 287A.050. For the year ended June 30, 2011, the City had 95% of
capacity available. G.O. bonds currently outstanding are as follows:
continued
60
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(I) Noncurrent Liabilities, continued
General Obligation Bonds, continued
OriginalEnding
Governmental activitiesissuanceInterest rates (%)balance
General obligation bonds serviced by
general property taxes:
Fire Projects Bonds, Series 2002$8,680,0003.000% to 4.650%5,430,000
Parks and Open Spaces Bonds, Series 20046,305,0002.500% to 4.650%3,960,000
General Obligation Refunding Bonds, Series 200624,990,0003.500% to 4.125%17,170,000
Parks and Open Spaces Bonds, Series 20085,600,0005.100%4,710,000
Total general obligation bonds$45,575,00031,270,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Governmental activities
Fiscal year
PrincipalInterest
ending June 30
2012$3,560,0001,315,527
20133,705,0001,169,051
20143,855,0001,015,856
20154,015,000855,660
20164,180,000688,026
2017-202110,680,0001,378,071
20221,275,00074,467
$31,270,0006,496,658
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. The Santa Clara Fire
Obligations are backed by the full faith and credit of the City and the debt payments are made by the General
Fund.
continued
61
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(I) Noncurrent Liabilities, continued
Certificates of Participation, continued
OriginalEnding
issuanceInterest rates (%)balance
Governmental activities
Certificates of participation serviced
by general property taxes:
Santa Clara Fire Station, Series 2003$2,090,0002.000% to 4.000%645,000
Certificates of participation serviced
by specific fund revenues:
Atrium Obligations, Series 1998A (tax-exempt)1,200,0003.700% to 4.900%565,000
Atrium Obligations, Series 1998B (taxable)1,200,0006.125% to 6.200%610,000
Total certificates of participation$4,490,0001,820,000
Annual debt service requirements to maturity for certificates of participation are as follows:
Governmental activities
Fiscal year
ending June 30PrincipalInterest
2012$355,00089,230
2013360,00073,823
2014370,00057,855
2015165,00040,770
2016180,00031,700
2017-2018390,00032,895
$1,820,000326,273
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
(I) Noncurrent Liabilities, continued
Limited Tax Bonds, continued
OriginalEnding
issuanceInterest rates (%)balance
Governmental activities
Limited tax bonds:
Limited Tax Pension Bonds, Series 2002 $84,335,0002.000% to 7.410%64,109,824
Limited Tax Improvement Bonds, Series 20061,036,4275.100%340,457
Limited Tax Improvement Bonds, Series 2011580,0007.050%580,000
Total limited tax bonds$85,951,42765,030,281
The Limited Tax Pension Bonds, Series 2002, in governmental activities, 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$65,030,281
Less: Accretion of deep discount(7,538,003)
Total debt service requirements for limited tax bonds$57,492,278
Annual debt service requirements to maturity for limited tax improvement bonds are as follows:
Governmental activities
Fiscal year
ending June 30PrincipalInterest
2012$058,253
2013058,253
2014058,253
2015058,253
2016340,45758,253
2017-20210204,450
2022-20270204,450
2028580,00020,445
$920,457720,610
continued
63
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(I) Noncurrent Liabilities, continued
Limited Tax Bonds, continued
Annual debt service requirements to maturity for limited tax pension bonds are as follows:
Governmental activities
Fiscal year
ending June 30PrincipalInterest
2012$844,0994,150,273
2013899,4574,344,915
2014949,7984,559,574
2015978,8614,805,512
20161,003,9225,065,451
2017-202110,715,68424,349,654
2022-202626,595,00010,512,351
2027-202814,585,0001,337,463
56,571,82159,125,193
Total limited tax bonds$57,492,27859,845,803
Tax Increment Bonds
The City’s Urban Renewal Agency issues tax increment bonds to finance major construction projects in
governmental and business-type 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 is in excess of
the “frozen base”.
On May 25, 2011, the City issued $7,900,000 of Downtown Urban Renewal District Tax Increment Bonds,
Series 2011 A, dated May 25, 2011, bearing a fixed interest rate of 5.20%, and maturing on June 1, 2020. The
proceeds of the Bonds were used to refund $4.4 million in debt service associated with the limited tax bonds
issued by the City to finance construction of the Broadway Garages and $3.5 million in financial assistance to
Lane Community College to help build their new Downtown Campus.
The refunding of the Broadway Garages Limited Tax Bonds, Series 1997 resulted in an economic gain despite
the net cost from refunding. The economic gain realized in this refunding was $84,000 and the net cost
resulting from the refunding was as follows:
Cash flow requirements to service old debt$5,574,191
Less: Cash flow requirements for new debt(5,600,976)
Net cash from refunding$(26,785)
continued
64
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(I) Noncurrent Liabilities, continued
Tax Increment Bonds, continued
OriginalEnding
Governmental activitiesissuanceInterest rates (%)balance
Tax increment bonds:
URA Tax Increment Bonds, Series 2011$7,900,0005.200%7,900,000
Total limited tax bonds$7,900,0007,900,000
Annual debt service requirements to maturity for tax increment bonds are as follows:
Governmental activities
Fiscal year
ending June 30PrincipalInterest
2012$717,000410,800
2013754,000373,516
2014794,000334,308
2015835,000293,020
2016878,000249,600
2017-20203,922,000517,348
$7,900,0002,178,592
Notes Payable
In July 2008, the City borrowed $2,706,000 from the U.S. Department of Housing and Urban Development
(HUD) to finance the purchase of the historic Washburne and Centre Court buildings in the Urban Renewal
Downtown District. The note pays interest at a variable rate equal to the three-month LIBOR rate plus 0.2%.
The rate adjusts monthly on the first day of each month.
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.
As of June 30, 2011, the City had borrowed $3,412,000 against the note. The note pays interest at a variable
rate equal to the three-month LIBOR rate plus 0.2%. The rate adjusts monthly on the first day of each month.
LoanInterestEnding
Governmental activitiesamountratebalance
Notes payable:
Housing and Urban Development -
$varies
Washburne and Centre Court Building2,706,0002,706,000
varies
Washburne and Centre Court Building Rehabilitation5,189,0003,412,000
7,895,0006,118,000
$
continued
65
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(I) Noncurrent Liabilities, continued
Notes Payable, continued
Annual debt service requirements to maturity for notes payable are as follows:
Governmental activities
Fiscal year
ending June 30PrincipalInterest
2012$030,780
2013128,00030,297
2014248,00029,200
2015248,00027,953
2016328,00026,403
2017-20211,690,000107,079
2022-20261,990,00060,669
2027-20301,486,0007,197
$6,118,000319,578
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, 2011, the City reported compensated absences of $8,272,396 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, 2011, internal service fund debt included the Atrium
Obligations of $1,175,000, Limited Tax Pension Bonds of $64,109,824, deferred bond discounts net of
premiums of $119,547, and $860,335 in compensated absences.
continued
66
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 officials errors and omissions, automobile, and
employer’s liability, with a maximum self-insured retention of $2,000,000 per occurrence. 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.
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 - $250,000 deductible
per occurrence; 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. During the previous
three fiscal years, there was one liability claim that exceeded the insurance coverage levels.
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 as of June 30, 2011. 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.
At June 30, 2011, a total claims liability of $10,916,609 is reported in the Risk and Benefits Internal Service
Fund. All prior and current year claims are fully reserved and have not been discounted. The City does not
utilize annuity contracts from commercial insurers. Therefore, during this reporting period, all known liabilities
have been disclosed.
The following changes occurred in the claims liability in the current and previous fiscal year:
FiscalLiabilityCurrent-year
yearbalance atclaims andLiability
endedbeginningchanges inClaimbalance at
June 30of yearestimatespaymentsend of year
201010,133,77720,374,030(20,175,556)10,332,251
201110,332,25119,967,474(19,383,116)10,916,609
continued
68
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(B) Joint Ventures
The City of Eugene is a participant with Lane County, the City of Springfield, the Eugene Water and Electric
Board, and the Lane Council of Governments in the Regional Executive Group (REG). The REG is governed
by a seven-member board consisting of the Chief Administrative Officer of each of the participating
governments, plus the County Assessor and the County Sheriff, all of whom have an equal vote in the REG
operations. The REG is a joint venture established by intergovernmental agreement to administer and set
policy for the Regional Information Service (RIS), the computer center serving the participating governments.
The City of Eugene maintains an ongoing financial responsibility for its share of RIS liabilities and for its
proportionate share of any RIS contracts entered into while bound by the intergovernmental agreement, until
such contracts are paid off. Additionally, the City has an ongoing financial responsibility as the REG's primary
customer, providing approximately 43% of its revenues. Although the City of Eugene has no explicit,
measurable equity interest in the REG, it does maintain a residual interest in RIS assets upon dissolution of the
joint venture. The REG does not issue a separate financial report.
All RIS financial activity is accounted for in the Information Services Fund, an enterprise fund of the Lane
County reporting entity. Lane County’s most recently published financial statement was for the year ended
June 30, 2010, where its Information Services Fund reflected operating income of $1,618,051, an increase in
net assets of $1,583,051 and total net assets of $12,915,949. For the fiscal year ended June 30, 2011, the City
paid $2,274,753 to Lane County for its share of RIS operations.
The City of Eugene is also 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 of Eugene appoints three voting members. The City of Eugene 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 of Eugene 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,
2011, the City provided billable operations to MWMC costing $11,271,623 and MWMC owed the City
$1,084,833 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, 2010, which reflected net income of $6,802,260 and total fund equity of $115,924,191.
Separate financial statements for MWMC can be obtained from the City of Springfield Finance Department.
(C) Retirement Plan
Plan Description
The City is a participating employer in the Oregon Public Employees Retirement System (PERS), an agent
multiple-employer public employee retirement system established under Oregon Revised Statutes 238.600 that
acts as a common investment and administrative agent for public employers in the State of Oregon. PERS is a
defined benefit pension plan that provides retirement and disability benefits, annual cost-of-living adjustments,
and death benefits to members and their beneficiaries. Benefits are established by state statute.
continued
69
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(C) Retirement Plan, continued
Plan Description, continued
In the 2003 legislative session, the Oregon Legislative Assembly created a successor plan for PERS. The
Oregon Public Service Retirement Plan (OPSRP) a cost-sharing multiple-employer defined benefit and defined
contribution pension plan. OPSRP is effective for all employees hired on or after August 29, 2003. The new
plan consists of a defined benefit program (the “Pension Program”) and a defined contribution portion (the
Individual Account Program or “IAP”). The Pension Program portion of OPSRP provides a life pension funded
by employer contributions. Benefits are calculated by a formula for members who attain normal retirement age.
The formula takes into account final average salary, years of service, and a factor that varies based on type of
service (general versus police or fire).
The defined contribution portion of OPSRP is provided to all members who are PERS or OPSRP eligible. 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 any or all of the employees’ required IAP
contributions. Those employees who had established a PERS membership prior to the creation of OPSRP will
retain their existing PERS accounts, but member contributions made after the beginning of 2004 will be
deposited into the member’s IAP account.
Both PERS and OPSRP are administered by the Oregon Public Employees Retirement Board (OPERB). The
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-
http://oregon.gov/PERS/
7377, or by accessing the PERS web site at .
Funding Policy
The City has elected to pay all of the employees’ required IAP contributions. For the fiscal year ended June 30,
2011, the 6.0% IAP contribution was $5,393,764 (5.99% of covered payroll). In addition to the IAP contribution,
the City contributed 10.1% of covered payroll to the defined benefit pension plans. This contribution rate was
determined as part of the December 31, 2007 PERS and OPSRP actuarial valuations. The most recent
actuarial valuation was prepared as of December 31, 2009. The 2009 valuation was used to establish rates as
of July 1, 2011. The City also charges an internal rate of 5.5% of payroll to departments to fund the repayment
of the City’s pension obligation bonds, which were issued in 2002.
Annual Pension Cost
The City of Eugene has submitted contributions as required by OPERB. For the fiscal year ended June 30,
2011, the City’s annual pension expenditures/expense exclusive of the 6.0% IAP contribution was $10,683,385.
This amount consisted of the annual required contribution to the defined benefit pension plans of $9,088,115
and $1,595,270 in amortization of pension assets. The City’s contributions were equal to the annual required
contributions, which were less than the annual pension cost as a result of the amortization of pension assets.
The City’s annual pension cost and pension assets for the year ended June 30, 2011, were as follows:
Annual required contribution$9,088,115
Interest on pension assets(4,779,461)
Adjustment to the annual required contribution6,374,731
Annual pension cost10,683,385
Contributions made9,088,115
Decrease in pension assets(1,595,270)
Pension assets, beginning of year59,743,261
Pension assets, end of year$58,147,991
continued
70
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(C) Retirement Plan, continued
Annual Pension Cost, continued
The City’s annual pension cost, the contribution, the percentage of annual pension cost contributed to the plan,
and the pension assets for fiscal year ending June 30, 2011 and the preceding two years were as follows:
Annual Percentage
Fiscal year pension of APC Pension
contributed
ending June 30
cost (APC)Contributionassets
$
200913,381,34612,013,65990%61,220,364
201010,371,2068,894,10386%59,743,261
201110,683,3859,088,11585%58,147,991
Funded Status and Funding Progress
As of December 31, 2009, the most recent actuarial valuation, the actuarial accrued liability (AAL) for benefits
was $664,728,789, and the actuarial value of assets was $572,595,446, resulting in an unfunded actuarial
liability (UAAL) of $92,133,343. The covered payroll (annual payroll of active employees covered by the plans)
was $89,005,209, and the ratio of the UAAL to the covered payroll was 104.0%.
The schedule of funding progress, presented as Required Supplementary Information following the Notes to
Basic Financial Statements presents multi-year trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Actuarial Methods and Assumptions
For the fiscal year ending June 30, 2011, the City’s annual required contribution rate for PERS and OSRP was
based on the December 31, 2007 actuarial valuation using the projected unit credit method.
The actuarial assumptions for the December 31, 2007 PERS and OPSRP actuarial valuations included an
investment return of 8.0% (8.5% for PERS variable account balances), a projected salary growth of 3.75%, and
a projected inflation rate of 2.75%. The PERS actuarial valuation included a healthcare cost inflation trend rate
of 7.0% in 2010 decreasing to 4.5% in 2029. The actuarial value of assets equals the market value of assets.
The unfunded actuarially accrued liability and plan gains and losses are amortized as a level percentage of the
combined valuation payroll over a closed period of 20 years for PERS and 16 years for OPSRP.
Both the PERS and OPSRP defined benefit pension plans utilize a contribution rate stabilization method to
restrict the degree of change to new contribution rates. The new contribution rate will not increase or decrease
from the prior contribution rate by more than the greater of 3 percentage points or 20% of the prior contribution
rate. If the plan’s funded percentage drops below 70% or increases above 130%, the size of the collar doubles.
If the funded percentage is between 70% and 80% or between 120% and 130%, the size of the rate collar is
increased on a graded scale. The actuarial value of assets is equal to their fair market value less contingency,
capital preservation, and rate guarantee reserves.
The Oregon Legislative Assembly created a second level or “Tier” of PERS benefits that modified service and
disability retirement allowances payable to persons who established PERS membership on or after January 1,
1996 (“Tier Two” members). Future interest credits on all member contributions in Tier One and Tier Two
Regular Accounts are assumed to accrue at an annual rate of 8.0%, compounded annually.
continued
71
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(D) 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 web site at http://oregon.gov/PERS/.
Funding Policy
Participating employers are contractually required to contribute 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 of the employers (ARC), 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 PERS’ RHIA for the past three
years were as follows, all of which equaled the required contributions for that year:
Fiscal year
Contribution
ending June 30
2009$309,134
2010236,218
2011236,631
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.
continued
72
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(D) Other Post-employment Benefits (OPEB), continued
City Healthcare Plan, continued
Plan Description, continued
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, 2011, the City’s combined plan
contributions were $851,492.
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, 2011, the amount actually contributed to the plans, and changes in the City’s net OPEB obligation:
Annual required contribution$995,671
Interest on net OPEB obligation213,870
Adjustment to the annual required contribution(273,681)
Annual OPEB cost (expense)935,860
Contributions made851,492
Increase in net OPEB obligation84,368
Net OPEB obligation, beginning of year4,112,887
Net OPEB obligation, end of year$4,197,255
continued
73
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(D) Other Post-employment Benefits (OPEB), continued
Annual OPEB Cost and Net OPEB Obligation, continued
The City’s annual OPEB cost, the contribution, the percentage of annual OPEB cost contributed to the plans,
and the net OPEB obligation for 2011 and the preceding two years were as follows:
Percentage of
Fiscal yearAnnualannual OPEBNet OPEB
OPEB costContributioncost contributedobligation
ending June 30
20091,429,3191,343,78594%4,178,547
20101,501,6731,567,333104%4,112,887
2011935,860851,49291%4,197,255
Funded Status and Funding Progress
As of June 30, 2011, the most recent actuarial valuation date, the actuarial accrued liability (AAL) for benefits
was $9,502,642, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability of
$9,502,642. The covered payroll (annual payroll of active employees covered by the plans) was $91,224,907,
and the ratio of the UAAL to the covered payroll was 10%.
As of June 30, 2011, the City has set aside $3,667,887 to pay for future post-employment benefits, which is
included in the unrestricted portion of net assets 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.
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.
continued
74
CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(5) Other Information, continued
(D) Other Post-employment Benefits (OPEB), continued
Actuarial Methods and Assumptions, continued
The June 30, 2011 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 5.2%.
The healthcare plan actuarial valuation included a healthcare cost inflation trend rate of 9.0% in 2010
decreasing to 6.0% 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.
(E) 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.
(F) Outstanding Encumbrances
At June 30, 2011, the City has encumbered the following significant commitments:
FundAmount
General$1,839,077
Community Development Special Revenue1,160,844
General Capital Projects815,201
Systems Development Capital Projects494,554
Municipal Airport3,304,310
Parking Services227,763
Stormwater Utility116,551
Wastewater Utility916,595
Internal service funds672,306
Other governmental funds8,950,815
Total outstanding encumbrances$18,498,016
(G) Subsequent Events
In November 2011, the City issued $11,020,000 in General Obligation Refunding Bonds to refund $5,430,000
of the Fire Projects Bonds, Series 2002, $4,220,000 of the Parks and Open Spaces Bonds, Series 2008, and a
portion of the General Obligation Bond and Revolving Credit Facility obligation.
(H) Conduit Debt
On December 27, 2010, the City issued $6.9 million 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
financial assistance to Woolworth Properties, LLC for the construction of the Bennett Building, which is located
within the City’s Urban Renewal Downtown 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, 2011, $6.9 million of the bonds were outstanding.
75
REQUIRED SUPPLEMENTARY INFORMATION
(this page intentionally left blank)
76
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, 2011
(amounts in dollars)
BudgetActual
BudgetGAAP
OriginalFinalbasisAdjustmentbasis
Revenues
Taxes93,278,00093,278,00094,477,143094,477,143
Licenses and permits6,382,5006,382,5005,664,38605,664,386
Intergovernmental3,804,0135,793,3014,492,415(66,294)4,426,121
Rental income98,76898,76896,942096,942
Charges for services11,312,44212,001,47711,300,032(674,124)10,625,908
Fines and forfeits2,909,0002,909,0002,864,39002,864,390
Miscellaneous474,620474,620791,836(26,537)765,299
Total revenues118,259,343120,937,666119,687,144(766,955)118,920,189
Expenditures
Current - departmental:
Central services22,534,66823,271,73921,644,188(7,559,441)14,084,747
Fire and emergency medical services24,639,42824,987,60023,298,775(19,952)23,278,823
Library, recreation, and cultural services21,703,61322,066,09121,468,0074,09621,472,103
Planning and development6,123,3276,451,1455,717,977(209,229)5,508,748
Police40,615,91843,430,86140,580,160(393,086)40,187,074
Public works6,257,1726,320,2755,607,70105,607,701
Debt service245,000245,000241,7550241,755
Intergovernmental550,000550,000289,896(289,896)0
Total expenditures122,669,126127,322,711118,848,459(8,467,508)110,380,951
Excess (deficiency) of
revenues over expenditures(4,409,783)(6,385,045)838,6857,700,5538,539,238
Other financing sources (uses)
Transfers in10,957,76711,225,29910,957,741(7,396,911)3,560,830
Transfers out(4,923,704)(6,291,236)(5,960,707)0(5,960,707)
Total other financing sources (uses)6,034,0634,934,0634,997,034(7,396,911)(2,399,877)
Net change in fund balance1,624,280(1,450,982)5,835,719303,6426,139,361
Fund balance, July 1, 201032,804,22439,066,29739,066,297838,40839,904,705
Fund balance, June 30, 201134,428,50437,615,31544,902,0161,142,05046,044,066
77
A-2
City of Eugene, Oregon
Community Development Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
BudgetActual
BudgetGAAP
OriginalFinalbasisAdjustmentbasis
Revenues
Intergovernmental7,040,1918,032,7595,231,17505,231,175
Charges for services5,0005,00011,074011,074
Repayment of revolving loans0001,160,8851,160,885
Miscellaneous1,263,2501,263,250710,210(828)709,382
Total revenues8,308,4419,301,0095,952,4591,160,0577,112,516
Expenditures
Current - departmental:
Central services6,0006,0000115,000115,000
Planning and development3,618,4863,618,4862,901,9652,761,3015,663,266
Loans granted5,269,1466,118,2952,761,301(2,761,301)0
Debt service400,000400,00020,486020,486
Capital outlay734,240842,568101,6430101,643
Intergovernmental6,504,0006,504,0004,149,682(4,149,682)0
Total expenditures16,531,87217,489,3499,935,077(4,034,682)5,900,395
Excess (deficiency) of
revenues over expenditures(8,223,431)(8,188,340)(3,982,618)5,194,7391,212,121
Other financing sources (uses)
Principal payments received2,209,0002,209,0001,160,885(1,160,885)0
Proceeds of note issuance5,189,0005,189,0003,412,00003,412,000
Transfers out(115,000)(115,000)(115,000)(4,034,682)(4,149,682)
Total other financing sources (uses)7,283,0007,283,0004,457,885(5,195,567)(737,682)
Net change in fund balance(940,431)(905,340)475,267(828)474,439
Fund balance, July 1, 20101,540,4312,138,0942,138,0942,5032,140,597
Fund balance, June 30, 2011600,0001,232,7542,613,3611,6752,615,036
78
CITY OF EUGENE, OREGON
Notes to Required Supplementary Information
June 30, 2011
(1) Schedule of Funding Progress – Oregon PERS
Oregon Public Employee Retirement System’s schedule of funding progress for the City of Eugene:
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
12/31/05 $ 579,816,082 571,031,263 (8,784,819) 102% 75,604,360 -12%
12/31/07 680,846,717 612,554,606 (68,292,111) 111% 85,563,475 -80%
12/31/09 572,595,446 664,728,789 92,133,343 86% 89,005,209 104%
(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
assets liability liability ratio payroll of covered payroll
date
06/30/07 $ 0 22,854,225 22,854,225 0% 75,075,500 30%
06/30/090 13,418,783 13,418,783 0% 90,674,405 15%
06/30/110 9,502,642 9,502,642 0% 91,224,907 10%
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.
79
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.
Community
GeneralDevelopment
Net change in fund balance - budget basis$5,835,719475,267
Budget resources not qualifying as revenues or other financing
sources under GAAP:
Indirect and other cost reimbursements received are reported as revenues
or other financing sources on a budget basis. Such receipts are
reclassified as a reduction of expenditures on a GAAP basis. (8,137,419)0
Revenues and other financing sources required by GAAP not
qualifying as budget resources:
Adjustment for fair value of investments at year end is reported as
miscellaneous revenue on a GAAP basis. Such revenues are not
reflected on a Budget basis.(26,446)(828)
Budget expenditures not qualifying as expenditures or other
financing uses under GAAP:
Indirect and other costs reimbursed are reported as expenditures on a
budget basis. Such disbursements are reclassified as a reduction of
revenues and other financing sources on a GAAP basis.8,137,4190
Prepaid expenses are recorded in the year paid on a budget basis.
However, such expenses are matched to the accounting period benefited
under GAAP.330,0880
Net change in fund balance - GAAP basis.$6,139,361 474,439
Principal payments received of $1,160,885 and loans granted of $2,761,301 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.
80
OTHER SUPPLEMENTARY INFORMATION
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS
B-1
City of Eugene, Oregon
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2011
(amounts in dollars)
Total
SpecialDebtCapitalOther
RevenueServiceProjectsGovernmental
FundsFundsFundsFunds
Assets
Equity in pooled cash and investments20,937,2961,676,62111,007,75933,621,676
Receivables:
Interest53,352128,5940181,946
Taxes215,695827,57601,043,271
Accounts912,43300912,433
Assessments155,920933,848247,1291,336,897
Loans and notes3,071,565031,0693,102,634
Allowance for uncollectibles(55,741)00(55,741)
Due from other governments1,965,15984,5141,253,4593,303,132
Inventories615,55500615,555
Prepaids and deposits71,7900071,790
Assets held for resale01,5411,867,4971,869,038
Total assets27,943,0243,652,69414,406,91346,002,631
Liabilities and fund balances
Liabilities
Accounts payable438,9808,2661,726,7882,174,034
Wages payable751,82400751,824
Due to other governments337,466043,682381,148
Deposits1,3240857,326858,650
Deferred revenue3,758,1021,830,432278,4635,866,997
Total liabilities5,287,6961,838,6982,906,25910,032,653
Fund balances
Nonspendable767,3451,5411,867,4972,636,383
Restricted11,798,1501,812,4558,465,73422,076,339
Committed10,089,83301,167,42311,257,256
Total fund balances22,655,3281,813,99611,500,65435,969,978
Total liabilities and fund balances27,943,0243,652,69414,406,91346,002,631
81
B-2
City of Eugene, Oregon
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the fiscal year ended June 30, 2011
(amounts in dollars)
Total
SpecialDebtCapitalOther
RevenueServiceProjectsGovernmental
FundsFundsFundsFunds
Revenues
Taxes3,428,80815,455,8833,118,88222,003,573
Licenses and permits10,583,4160010,583,416
Intergovernmental8,675,22404,339,24313,014,467
Rental income188,40900188,409
Charges for services5,118,9800123,2075,242,187
Fines and forfeits65,0100065,010
Special assessments14,090181,331904,8311,100,252
Repayment of revolving loans259,02200259,022
Miscellaneous2,200,821115,40074,1972,390,418
Total revenues30,533,78015,752,6148,560,36054,846,754
Expenditures
Current - departmental:
Central services3,964,183003,964,183
Fire and emergency medical services228,54600228,546
Library, recreation, and cultural services4,126,589004,126,589
Planning and development10,895,6520010,895,652
Police2,357,721002,357,721
Public works9,356,878009,356,878
Debt service:
Principal011,957,801011,957,801
Interest01,495,63223,3021,518,934
Issuance costs044,1166,58050,696
Capital outlay157,804015,594,43315,752,237
Contribution of land held for resale538,92900538,929
Intergovernmental08,000,00008,000,000
Total expenditures31,626,30221,497,54915,624,31568,748,166
Excess (deficiency) of
revenues over expenditures(1,092,522)(5,744,935)(7,063,955)(13,901,412)
Other financing sources (uses)
Proceeds of debt issuance07,900,0007,390,00015,290,000
Transfers in4,596,0930737,5285,333,621
Transfers out(1,510,528)(6,038,410)0(7,548,938)
Total other financing sources (uses)3,085,5651,861,5908,127,52813,074,683
Net change in fund balances1,993,043(3,883,345)1,063,573(826,729)
Fund balances, July 1, 201020,662,2855,697,34110,437,08136,796,707
Fund balances, June 30, 201122,655,3281,813,99611,500,65435,969,978
82
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 Local Option Levy Fund - To account for revenues received from a four-year library local option levy to
enhance services at the main library, operate two branch libraries, and furnish the main library.
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 Answering Point Fund - To account for operations of the emergency dispatch center. 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 revenues received from an ad valorem tax on property
located in the Riverfront Research Park. Resources are used for improving the condition and appearance of the
Riverfront Research Park.
83
84
C-3
City of Eugene, Oregon
Construction and Rental Housing Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits2,724,9002,856,98202,856,982
Charges for services3,693,8803,671,360(454,934)3,216,426
Fines and forfeits70,25064,110064,110
Miscellaneous424,50024,942(3,685)21,257
Total revenues6,913,5306,617,394(458,619)6,158,775
Expenditures
Current - departmental:
Central services00793,000793,000
Fire and emergency medical services285,022228,5460228,546
Planning and development4,852,8454,394,0629,6464,403,708
Public works400,974292,4620292,462
Intergovernmental1,100,000454,934(454,934)0
Total expenditures6,638,8415,370,004347,7125,717,716
Excess (deficiency) of
revenues over expenditures274,6891,247,390(806,331)441,059
Other financing sources (uses)
Transfers out(793,000)(793,000)793,0000
Total other financing sources (uses)(793,000)(793,000)793,0000
Net change in fund balance(518,311)454,390(13,331)441,059
Fund balance, July 1, 20101,484,6141,484,61415,5091,500,123
Fund balance, June 30, 2011966,3031,939,0042,1781,941,182
85
C-4
City of Eugene, Oregon
Library Local Option Levy Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Taxes2,583,1912,616,25102,616,251
Rental income18,00020,515020,515
Miscellaneous12,2448,980(476)8,504
Total revenues2,613,4352,645,746(476)2,645,270
Expenditures
Current - departmental:
Library, recreation, and cultural services2,878,8002,836,28818,3682,854,656
Total expenditures2,878,8002,836,28818,3682,854,656
Excess (deficiency) of
revenues over expenditures(265,365)(190,542)(18,844)(209,386)
Total other financing sources (uses)0000
Net change in fund balance(265,365)(190,542)(18,844)(209,386)
Fund balance, July 1, 2010665,492665,49278,352743,844
Fund balance, June 30, 2011400,127474,95059,508534,458
86
C-5
City of Eugene, Oregon
Library, Parks, and Recreation Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental1,6821,68201,682
Charges for services020,245020,245
Miscellaneous2,049,5401,901,148(3,241)1,897,907
Total revenues2,051,2221,923,075(3,241)1,919,834
Expenditures
Current - departmental:
Library, recreation, and cultural services1,319,4421,278,303(6,370)1,271,933
Capital outlay1,259,093102,7800102,780
Total expenditures2,578,5351,381,083(6,370)1,374,713
Excess (deficiency) of
revenues over expenditures(527,313)541,9923,129545,121
Total other financing sources (uses)0000
Net change in fund balance(527,313)541,9923,129545,121
Fund balance, July 1, 20102,741,6792,741,6798,2782,749,957
Fund balance, June 30, 20112,214,3663,283,67111,4073,295,078
87
C-6
City of Eugene, Oregon
Public Safety Answering Point Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental859,000788,7150788,715
Charges for services1,951,6811,715,86801,715,868
Miscellaneous2,6073,13803,138
Total revenues2,813,2882,507,72102,507,721
Expenditures
Current - departmental:
Central services00150,000150,000
Police2,663,2882,357,72102,357,721
Total expenditures2,663,2882,357,721150,0002,507,721
Excess (deficiency) of
revenues over expenditures150,000150,000(150,000)0
Other financing sources (uses)
Transfers out(150,000)(150,000)150,0000
Total other financing sources (uses)(150,000)(150,000)150,0000
Net change in fund balance0000
Fund balance, July 1, 20100000
Fund balance, June 30, 20110000
88
C-7
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, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits1,462,0001,691,59101,691,591
Intergovernmental8,081,5797,877,87407,877,874
Rental income42,80168,272068,272
Charges for services101,84237,173037,173
Miscellaneous128,084121,588(652)120,936
Total revenues9,816,3069,796,498(652)9,795,846
Expenditures
Current - departmental:
Central services00751,000751,000
Public works10,115,2099,064,41609,064,416
Total expenditures10,115,2099,064,416751,0009,815,416
Excess (deficiency) of
revenues over expenditures(298,903)732,082(751,652)(19,570)
Other financing sources (uses)
Transfers in200,000200,0000200,000
Transfers out(751,000)(751,000)751,0000
Total other financing sources (uses)(551,000)(551,000)751,000200,000
Net change in fund balance(849,903)181,082(652)180,430
Fund balance, July 1, 20101,942,0581,942,058618,9332,560,991
Fund balance, June 30, 20111,092,1552,123,140618,2812,741,421
89
C-8
City of Eugene, Oregon
Solid Waste and Recycling Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits606,363619,9110619,911
Intergovernmental06,95306,953
Charges for services7005,56205,562
Fines and forfeits09000900
Miscellaneous9,00015,386(896)14,490
Total revenues616,063648,712(896)647,816
Expenditures
Current - departmental:
Central services0050,00050,000
Planning and development967,213635,7130635,713
Total expenditures967,213635,71350,000685,713
Excess (deficiency) of
revenues over expenditures(351,150)12,999(50,896)(37,897)
Other financing sources (uses)
Transfers out(50,000)(50,000)50,0000
Total other financing sources (uses)(50,000)(50,000)50,0000
Net change in fund balance(401,150)(37,001)(896)(37,897)
Fund balance, July 1, 2010837,152837,1522,682839,834
Fund balance, June 30, 2011436,002800,1511,786801,937
90
C-9
City of Eugene, Oregon
Special Assessment Management Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Charges for services101,620110,4760110,476
Special assessments0014,09014,090
Miscellaneous30,80026,230(1,482)24,748
Total revenues132,420136,70612,608149,314
Expenditures
Current - departmental:
Central services85,11070,2946,21576,509
Total expenditures85,11070,2946,21576,509
Excess (deficiency) of
revenues over expenditures47,31066,4126,39372,805
Other financing sources (uses)
Principal payments received12,50014,090(14,090)0
Loans - deferred assessments(120,000)(3,216)3,2160
Transfers in120,000000
Transfers out(153,000)(210,528)3,000(207,528)
Total other financing sources (uses)(140,500)(199,654)(7,874)(207,528)
Net change in fund balance(93,190)(133,242)(1,481)(134,723)
Fund balance, July 1, 20101,376,8541,376,8543,5411,380,395
Fund balance, June 30, 20111,283,6641,243,6122,0601,245,672
91
C-10
City of Eugene, Oregon
Telecom Registration and Licensing Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits2,900,0005,414,93205,414,932
Miscellaneous35,00061,295(2,050)59,245
Total revenues2,935,0005,476,227(2,050)5,474,177
Expenditures
Current - departmental:
Central services4,663,6502,023,93984,7352,108,674
Capital outlay157,71055,024055,024
Total expenditures4,821,3602,078,96384,7352,163,698
Excess (deficiency) of
revenues over expenditures(1,886,360)3,397,264(86,785)3,310,479
Other financing sources (uses)
Transfers out(1,387,000)(1,387,000)84,000(1,303,000)
Total other financing sources (uses)(1,387,000)(1,387,000)84,000(1,303,000)
Net change in fund balance(3,273,360)2,010,264(2,785)2,007,479
Fund balance, July 1, 20105,091,5745,091,57419,0795,110,653
Fund balance, June 30, 20111,818,2147,101,83816,2947,118,132
92
C-11
City of Eugene, Oregon
Urban Renewal Agency General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental6,504,0004,149,682(4,149,682)0
Rental income036,622036,622
Charges for services2,00013,230013,230
Repayment of revolving loans00259,022259,022
Miscellaneous46,00017,386(2,867)14,519
Total revenues6,552,0004,216,920(3,893,527)323,393
Expenditures
Current - departmental:
Central services0017,50017,500
Planning and development530,000251,5415,476,6975,728,238
Loans granted8,302,5585,494,197(5,494,197)0
Contribution of land held for resale00538,929538,929
Total expenditures8,832,5585,745,738538,9296,284,667
Excess (deficiency) of
revenues over expenditures(2,280,558)(1,528,818)(4,432,456)(5,961,274)
Other financing sources (uses)
Principal payments received50,000259,022(259,022)0
Transfers in530,000246,4114,149,6824,396,093
Total other financing sources (uses)580,000505,4333,890,6604,396,093
Net change in fund balance(1,700,558)(1,023,385)(541,796)(1,565,181)
Fund balance, July 1, 20101,700,5581,700,558543,3992,243,957
Fund balance, June 30, 20110677,1731,603678,776
93
C-12
City of Eugene, Oregon
Urban Renewal Agency Riverfront Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Taxes780,000812,5570812,557
Rental income063,000063,000
Miscellaneous25,00037,956(1,879)36,077
Total revenues805,000913,513(1,879)911,634
Expenditures
Current - departmental:
Central services0017,50017,500
Planning and development267,500145,493(17,500)127,993
Total expenditures267,500145,4930145,493
Excess (deficiency) of
revenues over expenditures537,500768,020(1,879)766,141
Total other financing sources (uses)0000
Net change in fund balance537,500768,020(1,879)766,141
Fund balance, July 1, 20103,524,4863,524,4868,0453,532,531
Fund balance, June 30, 20114,061,9864,292,5066,1664,298,672
94
DEBT SERVICE FUNDS
None of the City’s debt service funds meet the criteria for major fund reporting. Therefore, the combining statements
for all individual debt service funds are reported here. The combined totals are reported in the combining nonmajor
governmental fund statements at B-1 and B-2.
Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented here for
each individual debt service fund.
Nonmajor 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.
Library Debt Service Fund - To account for debt service to construct a new library. The debt service is financed
through tax increment revenues from the Urban Renewal Agency Debt Service Fund.
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
Combining Balance Sheet
Nonmajor Debt Service Funds
June 30, 2011
(amounts in dollars)
SpecialUrban
GeneralAssessmentRenewal
ObligationBondAgencyTotal
Assets
Equity in pooled cash and investments891,352412,964372,3051,676,621
Receivables:
Interest91,851036,743128,594
Taxes694,0900133,486827,576
Assessments0933,8480933,848
Due from other governments70,567013,94784,514
Assets held for resale01,54101,541
Total assets1,747,8601,348,353556,4813,652,694
Liabilities and fund balances
Liabilities
Accounts payable08,26608,266
Deferred revenue785,941874,262170,2291,830,432
Total liabilities785,941882,528170,2291,838,698
Fund balances
Nonspendable01,54101,541
Restricted961,919464,284386,2521,812,455
Total fund balances961,919465,825386,2521,813,996
Total liabilities and fund balances1,747,8601,348,353556,4813,652,694
95
D-2
City of Eugene, Oregon
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Debt Service Funds
For the fiscal year ended June 30, 2011
(amounts in dollars)
SpecialUrban
GeneralAssessmentRenewal
LibraryBondAgencyTotal
Obligation
Revenues
Taxes13,596,290001,859,59315,455,883
Special assessments00181,3310181,331
Miscellaneous49,629024,45641,315115,400
Total revenues13,645,9190205,7871,900,90815,752,614
Expenditures
Debt service:
Principal11,830,2500127,551011,957,801
Interest1,473,511022,12101,495,632
Issuance costs0016,26527,85144,116
Intergovernmental0008,000,0008,000,000
Total expenditures13,303,7610165,9378,027,85121,497,549
Excess (deficiency) of
revenues over expenditures342,158039,850(6,126,943)(5,744,935)
Other financing sources (uses)
Proceeds of debt issuance0007,900,0007,900,000
Transfers out0(39,915)0(5,998,495)(6,038,410)
Total other financing sources (uses)0(39,915)01,901,5051,861,590
Net change in fund balances342,158(39,915)39,850(4,225,438)(3,883,345)
Fund balances, July 1, 2010619,76139,915425,9754,611,6905,697,341
Fund balances, June 30, 2011961,9190465,825386,2521,813,996
96
D-3
City of Eugene, Oregon
General Obligation Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Taxes13,276,80813,596,290013,596,290
Miscellaneous27,00051,591(1,962)49,629
Total revenues13,303,80813,647,881(1,962)13,645,919
Expenditures
Debt service13,303,80813,303,761013,303,761
Total expenditures13,303,80813,303,761013,303,761
Excess (deficiency) of
revenues over expenditures0344,120(1,962)342,158
Total other financing sources (uses)0000
Net change in fund balance0344,120(1,962)342,158
Fund balance, July 1, 2010609,323609,32310,438619,761
Fund balance, June 30, 2011609,323953,4438,476961,919
97
D-4
City of Eugene, Oregon
Library Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Miscellaneous100000
Total revenues100000
Expenditures
Total expenditures0000
Excess (deficiency) of
revenues over expenditures100000
Other financing sources (uses)
Transfers out(39,852)(39,826)(89)(39,915)
Total other financing sources (uses)(39,852)(39,826)(89)(39,915)
Net change in fund balance(39,752)(39,826)(89)(39,915)
Fund balance, July 1, 201039,82639,8268939,915
Fund balance, June 30, 201174000
98
D-5
City of Eugene, Oregon
Special Assessment Bond Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Special assessments00181,331181,331
Miscellaneous64,50024,851(395)24,456
Total revenues64,50024,851180,936205,787
Expenditures
Debt service400,000165,9370165,937
Total expenditures400,000165,9370165,937
Excess (deficiency) of
revenues over expenditures(335,500)(141,086)180,93639,850
Other financing sources (uses)
Principal payments received344,800181,331(181,331)0
Transfers out(20,000)000
Total other financing sources (uses)324,800181,331(181,331)0
Net change in fund balance(10,700)40,245(395)39,850
Fund balance, July 1, 2010424,872424,8721,103425,975
Fund balance, June 30, 2011414,172465,117708465,825
99
D-6
City of Eugene, Oregon
Urban Renewal Agency Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Taxes1,920,0001,859,59301,859,593
Miscellaneous25,00046,409(5,094)41,315
Total revenues1,945,0001,906,002(5,094)1,900,908
Expenditures
Debt service150,00027,851027,851
Intergovernmental13,261,00013,252,084(5,252,084)8,000,000
Total expenditures13,411,00013,279,935(5,252,084)8,027,851
Excess (deficiency) of
revenues over expenditures(11,466,000)(11,373,933)5,246,990(6,126,943)
Other financing sources (uses)
Proceeds of debt issuance7,900,0007,900,00007,900,000
Transfers out(1,030,000)(746,411)(5,252,084)(5,998,495)
Total other financing sources (uses)6,870,0007,153,589(5,252,084)1,901,505
Net change in fund balance(4,596,000)(4,220,344)(5,094)(4,225,438)
Fund balance, July 1, 20104,599,0604,599,06012,6304,611,690
Fund balance, June 30, 20113,060378,7167,536386,252
100
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.
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
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2011
(amounts in dollars)
Urban
UrbanRenewal
SpecialRenewalAgency
TransportationAgencyRiverfrontTotal
Assessment
Assets
Equity in pooled cash and investments2,025,0148,078,471740,531163,74311,007,759
Receivables:
Assessments247,129000247,129
Loans and notes31,06900031,069
Due from other governments01,253,459001,253,459
Assets held for resale265001,867,2321,867,497
Total assets2,303,4779,331,930740,5312,030,97514,406,913
Liabilities and fund balances
Liabilities
Accounts payable01,726,788001,726,788
Due to other governments043,6820043,682
Deposits857,326000857,326
Deferred revenue278,463000278,463
Total liabilities1,135,7891,770,470002,906,259
Fund balances
Nonspendable265001,867,2321,867,497
Restricted07,561,460740,531163,7438,465,734
Committed1,167,4230001,167,423
Total fund balances1,167,6887,561,460740,5312,030,97511,500,654
Total liabilities and fund balances2,303,4779,331,930740,5312,030,97514,406,913
101
E-2
City of Eugene, Oregon
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Capital Projects Funds
For the fiscal year ended June 30, 2011
(amounts in dollars)
Urban
UrbanRenewal
SpecialRenewalAgency
AssessmentTransportationAgencyRiverfrontTotal
Revenues
Taxes03,118,882003,118,882
Intergovernmental04,339,243004,339,243
Charges for services118,7644,44300123,207
Special assessments904,831000904,831
Miscellaneous37,20133,3402,2661,39074,197
Total revenues1,060,7967,495,9082,2661,3908,560,360
Expenditures
Debt service:
Interest23,30200023,302
Issuance costs3,5583,022006,580
Capital outlay545,69915,048,7340015,594,433
Total expenditures572,55915,051,7560015,624,315
Excess (deficiency) of
revenues over expenditures488,237(7,555,848)2,2661,390(7,063,955)
Other financing sources (uses)
Proceeds of debt issuance580,0006,810,000007,390,000
Transfers in207,52830,000500,0000737,528
Total other financing sources (uses)787,5286,840,000500,00008,127,528
Net change in fund balances1,275,765(715,848)502,2661,3901,063,573
Fund balances, July 1, 2010(108,077)8,277,308238,2652,029,58510,437,081
Fund balances, June 30, 20111,167,6887,561,460740,5312,030,97511,500,654
102
E-3
City of Eugene, Oregon
General Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental251,069389,2460389,246
Rental income20,000000
Miscellaneous35,000116,5084,788121,296
Total revenues306,069505,7544,788510,542
Expenditures
Current - departmental:
Central services10,0009,87209,872
Debt service50,000000
Capital outlay30,278,3405,748,91205,748,912
Total expenditures30,338,3405,758,78405,758,784
Excess (deficiency) of
revenues over expenditures(30,032,271)(5,253,030)4,788(5,248,242)
Other financing sources (uses)
Principal payments received8,500000
Proceeds of debt issuance15,351,5572,475,00002,475,000
Transfers in3,369,3003,369,30003,369,300
Total other financing sources (uses)18,729,3575,844,30005,844,300
Net change in fund balance(11,302,914)591,2704,788596,058
Fund balance, July 1, 201011,827,33411,827,33413,30011,840,634
Fund balance, June 30, 2011524,42012,418,60418,08812,436,692
103
E-4
City of Eugene, Oregon
Special Assessment Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Charges for services0118,7640118,764
Special assessments00904,831904,831
Miscellaneous76,40039,207(2,006)37,201
Total revenues76,400157,971902,8251,060,796
Expenditures
Debt service2,000,0001,679,034(1,652,174)26,860
Capital outlay1,433,447545,6990545,699
Total expenditures3,433,4472,224,733(1,652,174)572,559
Excess (deficiency) of
revenues over expenditures(3,357,047)(2,066,762)2,554,999488,237
Other financing sources (uses)
Principal payments received355,000904,831(904,831)0
Proceeds of debt issuance3,591,1901,402,857(822,857)580,000
Transfers in150,000207,5280207,528
Transfers out(100,000)000
Total other financing sources (uses)3,996,1902,515,216(1,727,688)787,528
Net change in fund balance639,143448,454827,3111,275,765
Fund balance, July 1, 2010716,435716,435(824,512)(108,077)
Fund balance, June 30, 20111,355,5781,164,8892,7991,167,688
104
E-5
City of Eugene, Oregon
Systems Development Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Rental income104,00097,915097,915
Charges for services2,009,5362,282,38302,282,383
Miscellaneous60,68399,263(3,669)95,594
Total revenues2,174,2192,479,561(3,669)2,475,892
Expenditures
Current - departmental:
Central services0015,00015,000
Planning and development83,90467,326067,326
Public works273,322198,1800198,180
Capital outlay4,498,3181,779,81601,779,816
Total expenditures4,855,5442,045,32215,0002,060,322
Excess (deficiency) of
revenues over expenditures(2,681,325)434,239(18,669)415,570
Other financing sources (uses)
Transfers out(15,000)(15,000)15,0000
Total other financing sources (uses)(15,000)(15,000)15,0000
Net change in fund balance(2,696,325)419,239(3,669)415,570
Fund balance, July 1, 20105,323,2275,323,22711,9945,335,221
Fund balance, June 30, 20112,626,9025,742,4668,3255,750,791
105
E-6
City of Eugene, Oregon
Transportation Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Taxes2,940,0003,118,88203,118,882
Intergovernmental8,487,1554,339,24304,339,243
Rental income30,000000
Charges for services10,0004,44304,443
Miscellaneous41,00041,853(8,513)33,340
Total revenues11,508,1557,504,421(8,513)7,495,908
Expenditures
Debt service40,0003,02203,022
Capital outlay29,463,57315,048,734015,048,734
Total expenditures29,503,57315,051,756015,051,756
Excess (deficiency) of
revenues over expenditures(17,995,418)(7,547,335)(8,513)(7,555,848)
Other financing sources (uses)
Proceeds of debt issuance10,848,9286,810,00006,810,000
Transfers in30,00030,000030,000
Total other financing sources (uses)10,878,9286,840,00006,840,000
Net change in fund balance(7,116,490)(707,335)(8,513)(715,848)
Fund balance, July 1, 20108,262,1158,262,11515,1938,277,308
Fund balance, June 30, 20111,145,6257,554,7806,6807,561,460
106
E-7
City of Eugene, Oregon
Urban Renewal Agency Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Miscellaneous1,0002,249172,266
Total revenues1,0002,249172,266
Expenditures
Capital outlay734,593000
Total expenditures734,593000
Excess (deficiency) of
revenues over expenditures(733,593)2,249172,266
Other financing sources (uses)
Transfers in500,000500,0000500,000
Total other financing sources (uses)500,000500,0000500,000
Net change in fund balance(233,593)502,24917502,266
Fund balance, July 1, 2010237,918237,918347238,265
Fund balance, June 30, 20114,325740,167364740,531
107
E-8
City of Eugene, Oregon
Urban Renewal Agency Riverfront Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Miscellaneous1,0001,530(140)1,390
Total revenues1,0001,530(140)1,390
Expenditures
Capital outlay141,500000
Total expenditures141,500000
Excess (deficiency) of
revenues over expenditures(140,500)1,530(140)1,390
Total other financing sources (uses)0000
Net change in fund balance(140,500)1,530(140)1,390
Fund balance, July 1, 2010161,965161,9651,867,6202,029,585
Fund balance, June 30, 201121,465163,4951,867,4802,030,975
108
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 assets - 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.
F-1
City of Eugene, Oregon
Ambulance Transport Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental09,281(9,281)0
Charges for services6,209,2277,234,30407,234,304
Miscellaneous64,95577,7061,32179,027
Total revenues6,274,1827,321,291(7,960)7,313,331
Expenses
Current - departmental:
Central services00547,000547,000
Fire and emergency medical services5,902,6335,224,117(36,360)5,187,757
Depreciation0045,30445,304
Total expenses5,902,6335,224,117555,9445,780,061
Excess (deficiency) of
revenues over expenses371,5492,097,174(563,904)1,533,270
Other financing sources (uses)
Transfers in450,000000
Transfers out(895,615)(895,615)547,000(348,615)
Total other financing sources (uses)(445,615)(895,615)547,000(348,615)
Change in net assets(74,066)1,201,559(16,904)1,184,655
Total net assets, July 1, 2010850,441850,441645,1801,495,621
Total net assets, June 30, 2011776,3752,052,000628,2762,680,276
109
F-2
City of Eugene, Oregon
Municipal Airport Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental11,217,3294,251,792(4,244,963)6,829
Rental income3,203,4193,294,52003,294,520
Charges for services4,283,3414,624,63604,624,636
Fines and forfeits8,0007,49407,494
Miscellaneous97,061164,357(39,299)125,058
Total revenues18,809,15012,342,799(4,284,262)8,058,537
Expenses
Current - departmental:
Central services00483,000483,000
Fire and emergency medical services737,307678,087(2,093)675,994
Police419,422402,766116402,882
Public works5,087,6495,082,07148,4525,130,523
Capital outlay14,219,9693,343,676(3,343,676)0
Depreciation004,483,6644,483,664
Total expenses20,464,3479,506,6001,669,46311,176,063
Excess (deficiency) of
revenues over expenses(1,655,197)2,836,199(5,953,725)(3,117,526)
Other financing sources (uses)
Principal payments received65,06065,503(65,503)0
Capital contributions004,274,4764,274,476
Transfers out(483,000)(483,000)483,0000
Total other financing sources (uses)(417,940)(417,497)4,691,9734,274,476
Change in net assets(2,073,137)2,418,702(1,261,752)1,156,950
Total net assets, July 1, 201012,823,78612,823,78680,949,90693,773,692
Total net assets, June 30, 201110,750,64915,242,48879,688,15494,930,642
110
F-3
City of Eugene, Oregon
Parking Services Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental5,554,8755,463,630(5,252,084)211,546
Rental income540,000517,722(450)517,272
Charges for services3,333,1303,563,14503,563,145
Fines and forfeits1,191,500964,1930964,193
Miscellaneous23,00016,937(3,410)13,527
Total revenues10,642,50510,525,627(5,255,944)5,269,683
Expenses
Current - departmental:
Central services354,120306,120255,118561,238
Planning and development3,209,0043,325,156637,5433,962,699
Public works73,61583,252083,252
Debt service5,261,5075,252,084(4,939,053)313,031
Capital outlay1,290,0001,216,600(1,216,600)0
Depreciation00798,113798,113
Amortization0011,63311,633
Total expenses10,188,24610,183,212(4,453,246)5,729,966
Excess (deficiency) of
revenues over expenses454,259342,415(802,698)(460,283)
Other financing sources (uses)
Transfers in005,252,0845,252,084
Transfers out(2,124,300)(2,124,300)255,000(1,869,300)
Total other financing sources (uses)(2,124,300)(2,124,300)5,507,0843,382,784
Change in net assets(1,670,041)(1,781,885)4,704,3862,922,501
Total net assets, July 1, 20101,999,0271,999,02713,868,86515,867,892
Total net assets, June 30, 2011328,986217,14218,573,25118,790,393
111
F-4
City of Eugene, Oregon
Stormwater Utility Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits112,50085,211085,211
Intergovernmental2,581,755933,803(856,619)77,184
Rental income27,28828,540028,540
Charges for services12,466,20112,610,429(400)12,610,029
Miscellaneous68,69098,704(5,190)93,514
Total revenues15,256,43413,756,687(862,209)12,894,478
Expenses
Current - departmental:
Central services00883,000883,000
Public works12,053,54210,848,106172,05411,020,160
Capital outlay7,974,9782,131,178(2,131,178)0
Depreciation001,377,5371,377,537
Intergovernmental15,000400(400)0
Total expenses20,043,52012,979,684301,01313,280,697
Excess (deficiency) of
revenues over expenses(4,787,086)777,003(1,163,222)(386,219)
Other financing sources (uses)
Capital contributions001,105,3001,105,300
Transfers out(883,000)(883,000)883,0000
Total other financing sources (uses)(883,000)(883,000)1,988,3001,105,300
Change in net assets(5,670,086)(105,997)825,078719,081
Total net assets, July 1, 20108,429,3798,429,37946,396,84854,826,227
Total net assets, June 30, 20112,759,2938,323,38247,221,92655,545,308
112
F-5
City of Eugene, Oregon
Wastewater Utility Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental07,650(7,650)0
Rental income18,60040,292040,292
Charges for services42,205,10639,817,188(19,805,486)20,011,702
Fines and forfeits2,5003,35003,350
Miscellaneous50,00089,702(451)89,251
Total revenues42,276,20639,958,182(19,813,587)20,144,595
Expenses
Current - departmental:
Central services001,409,0001,409,000
Public works18,281,52816,456,30967,98116,524,290
Capital outlay3,515,2991,296,688(1,296,688)0
Depreciation003,694,6403,694,640
Intergovernmental21,155,00019,805,487(19,805,487)0
Total expenses42,951,82737,558,484(15,930,554)21,627,930
Excess (deficiency) of
revenues over expenses(675,621)2,399,698(3,883,033)(1,483,335)
Other financing sources (uses)
Capital contributions00560,076560,076
Transfers out(1,409,000)(1,409,000)1,409,0000
Total other financing sources (uses)(1,409,000)(1,409,000)1,969,076560,076
Change in net assets(2,084,621)990,698(1,913,957)(923,259)
Total net assets, July 1, 20103,075,0633,075,06396,418,48799,493,550
Total net assets, June 30, 2011990,4424,065,76194,504,53098,570,291
113
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114
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 assets - 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, minutes recording, and printing/graphic services provided to
other City funds. 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.
City of Eugene, Oregon
G-1
Combining Statement of Net Assets
All Internal Service Funds
June 30, 2011
(amounts in dollars)Information
FacilitiesFleetSystems andProfessionalRisk and
ServicesServicesServicesServicesBenefitsTotal
Assets
Current assets
Equity in pooled cash and investments10,900,76415,471,5325,739,3893,097,47023,471,80958,680,964
Receivables:
Accounts05,256011,772153,984171,012
Allowance for uncollectibles000(220)0(220)
Due from other governments98,53685,6802,22027,62092,539306,595
Inventories0352,154000352,154
Prepaids and deposits000030,98130,981
Total current assets10,999,30015,914,6225,741,6093,136,64223,749,31359,541,486
Noncurrent assets
Deferred charges5,726000471,028476,754
Pension assets000058,147,99158,147,991
Capital assets:
Land0455,834000455,834
Improvements other than buildings051,91300051,913
Buildings and equipment4,113,28839,566,9562,213,642234,4237,99546,136,304
Construction in progress21,503220,334000241,837
Accumulated depreciation(1,258,296)(22,634,096)(1,874,888)(168,086)(1,333)(25,936,699)
Total noncurrent assets2,882,22117,660,941338,75466,33758,625,68179,573,934
Total assets13,881,52133,575,5636,080,3633,202,97982,374,994139,115,420
Liabilities
Current liabilities
Accounts payable198,921359,343361,3357,76459,737987,100
Wages payable226,548154,383190,941258,779106,787937,438
Compensated absences payable251,573154,618148,549200,85963,778819,377
Due to other governments118,218018,57900136,797
Claims payable000010,916,60910,916,609
Deposits1,38000086,92988,309
Interest payable5,394000276,198281,592
Unearned revenue25,2730326,00000351,273
Certificates of participation payable140,0000000140,000
Bonds payable0000844,099844,099
Total current liabilities967,307668,3441,045,404467,40212,354,13715,502,594
Noncurrent liabilities
Compensated absences payable02,7890038,16940,958
Certificates of participation payable1,035,00000001,035,000
Bonds payable (net of unamortized discount/premium)000063,146,17863,146,178
Net OPEB obligation29,7445,1077,44217,9553,671,4763,731,724
Total noncurrent liabilities1,064,7447,8967,44217,95566,855,82367,953,860
Total liabilities2,032,051676,2401,052,846485,35779,209,96083,456,454
Net assets
Invested in capital assets (net of related debt)1,701,49517,660,941338,75466,3376,66219,774,189
Unrestricted10,147,97515,238,3824,688,7632,651,2853,158,37235,884,777
Total net assets11,849,47032,899,3235,027,5172,717,6223,165,03455,658,966
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116
City of Eugene, OregonG-2
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Assets
All Internal Service Funds
For the fiscal year ended June 30, 2011
(amounts in dollars)
Information
FacilitiesFleetSystems andProfessionalRisk and
ServicesServicesServicesServicesBenefitsTotal
Operating revenues
Licenses and permits0003820382
Intergovernmental119,194000156,885276,079
Rental income1,016,17361,5880001,077,761
Charges for services8,797,8367,774,4925,825,1045,498,23830,163,30258,058,972
Miscellaneous3,116251,3887,7594936,498298,810
Total operating revenues9,936,3198,087,4685,832,8635,498,66930,356,68559,712,004
Operating expenses
Personnel services3,952,5532,435,7922,147,0313,967,9532,731,55215,234,881
Contractual services641,964596,031614,49930,5542,064,7183,947,766
Materials and supplies455,7102,089,1141,644,04370,059114,3234,373,249
Maintenance614,247443,838291,441240,59458,2551,648,375
Utilities2,508,10826,251447,82833,17612,9293,028,292
Rent2,58620,248193,868134,72682,621434,049
Taxes12,546000012,546
Insurance74,698390,19128,67739,2401,444,4991,977,305
Claims000019,967,47419,967,474
Central business functions483,000419,000261,000538,000158,0001,859,000
Depreciation103,7402,886,946111,96712,0615333,115,247
Total operating expenses8,849,1529,307,4115,740,3545,066,36326,634,90455,598,184
Operating income (loss)1,087,167(1,219,943)92,509432,3063,721,7814,113,820
Nonoperating revenues (expenses)
Interest revenue45,869123,39644,97325,166197,781437,185
Interest expense(71,126)000(4,479,500)(4,550,626)
Amortization of issuance costs(1,761)000(37,502)(39,263)
Total nonoperating revenues (expenses)(27,018)123,39644,97325,166(4,319,221)(4,152,704)
Income (loss) before capital
contributions and transfers1,060,149(1,096,547)137,482457,472(597,440)(38,884)
Capital contributions0100,371000100,371
Transfers in02,361,4070002,361,407
Change in net assets1,060,1491,365,231137,482457,472(597,440)2,422,894
Total net assets, July 1, 201010,789,32131,534,0924,890,0352,260,1503,762,47453,236,072
Total net assets, June 30, 201111,849,47032,899,3235,027,5172,717,6223,165,03455,658,966
117
118
119
G-4
City of Eugene, Oregon
Facilities Services Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental0119,723(529)119,194
Rental income906,596883,473132,7001,016,173
Charges for services8,704,2138,797,83608,797,836
Miscellaneous132,00094,891(45,906)48,985
Total revenues9,742,8099,895,92386,2659,982,188
Expenses
Current - departmental:
Central services8,387,4847,780,956474,0518,255,007
Planning and development270,964219,516270,889490,405
Debt service201,708201,708(130,582)71,126
Capital outlay749,913291,905(291,905)0
Depreciation00103,740103,740
Amortization001,7611,761
Total expenses9,610,0698,494,085427,9548,922,039
Excess (deficiency) of
revenues over expenses132,7401,401,838(341,689)1,060,149
Other financing sources (uses)
Transfers out(483,000)(483,000)483,0000
Total other financing sources (uses)(483,000)(483,000)483,0000
Change in net assets(350,260)918,838141,3111,060,149
Total net assets, July 1, 20109,512,5159,512,5151,276,80610,789,321
Total net assets, June 30, 20119,162,25510,431,3531,418,11711,849,470
120
G-5
City of Eugene, Oregon
Fleet Services Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental04,957(4,957)0
Rental income43,00061,588061,588
Charges for services8,764,3957,774,49207,774,492
Miscellaneous201,504435,424(60,640)374,784
Total revenues9,008,8998,276,461(65,597)8,210,864
Expenses
Current - departmental:
Central services00419,000419,000
Police807,615323,7330323,733
Public works7,244,9286,569,334(891,602)5,677,732
Capital outlay212,472211,374(211,374)0
Depreciation002,886,9462,886,946
Total expenses8,265,0157,104,4412,202,9709,307,411
Excess (deficiency) of
revenues over expenses743,8841,172,020(2,268,567)(1,096,547)
Other financing sources (uses)
Capital contributions00100,371100,371
Transfers in1,974,4042,361,40702,361,407
Transfers out(419,000)(419,000)419,0000
Total other financing sources (uses)1,555,4041,942,407519,3712,461,778
Change in net assets2,299,2883,114,427(1,749,196)1,365,231
Total net assets, July 1, 201011,912,95411,912,95419,621,13831,534,092
Total net assets, June 30, 201114,212,24215,027,38117,871,94232,899,323
121
G-6
City of Eugene, Oregon
Information Systems and Services Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Charges for services6,066,5006,151,104(326,000)5,825,104
Miscellaneous64,90555,184(2,452)52,732
Total revenues6,131,4056,206,288(328,452)5,877,836
Expenses
Current - departmental:
Central services6,467,7425,518,964109,4235,628,387
Depreciation00111,967111,967
Total expenses6,467,7425,518,964221,3905,740,354
Excess (deficiency) of
revenues over expenses(336,337)687,324(549,842)137,482
Other financing sources (uses)
Transfers out(261,000)(261,000)261,0000
Total other financing sources (uses)(261,000)(261,000)261,0000
Change in net assets(597,337)426,324(288,842)137,482
Total net assets, July 1, 20104,736,7464,736,746153,2894,890,035
Total net assets, June 30, 20114,139,4095,163,070(135,553)5,027,517
122
G-7
City of Eugene, Oregon
Professional Services Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Licenses and permits2,0003820382
Charges for services5,866,4495,498,23805,498,238
Miscellaneous14,00025,804(589)25,215
Total revenues5,882,4495,524,424(589)5,523,835
Expenses
Current - departmental:
Central services00538,000538,000
Public works5,298,9844,529,082(12,780)4,516,302
Depreciation0012,06112,061
Total expenses5,298,9844,529,082537,2815,066,363
Excess (deficiency) of
revenues over expenses583,465995,342(537,870)457,472
Other financing sources (uses)
Transfers out(538,000)(538,000)538,0000
Total other financing sources (uses)(538,000)(538,000)538,0000
Change in net assets45,465457,342130457,472
Total net assets, July 1, 20102,408,5732,408,573(148,423)2,260,150
Total net assets, June 30, 20112,454,0382,865,915(148,293)2,717,622
123
G-8
City of Eugene, Oregon
Risk and Benefits Fund
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
BudgetGAAP
BudgetbasisAdjustmentbasis
Revenues
Intergovernmental134,525165,978(9,093)156,885
Charges for services30,463,35330,163,302030,163,302
Miscellaneous519,0801,346,480(1,112,201)234,279
Total revenues31,116,95831,675,760(1,121,294)30,554,466
Expenses
Current - departmental:
Central services27,510,25125,993,209641,16226,634,371
Debt service4,754,5004,754,373(274,873)4,479,500
Depreciation00533533
Amortization0037,50237,502
Total expenses32,264,75130,747,582404,32431,151,906
Excess (deficiency) of
revenues over expenses(1,147,793)928,178(1,525,618)(597,440)
Other financing sources (uses)
Transfers out(158,000)(158,000)158,0000
Total other financing sources (uses)(158,000)(158,000)158,0000
Change in net assets(1,305,793)770,178(1,367,618)(597,440)
Total net assets, July 1, 20108,075,4368,075,436(4,312,962)3,762,474
Total net assets, June 30, 20116,769,6438,845,614(5,680,580)3,165,034
124
OTHER SUPPLEMENTARY SCHEDULES
City of Eugene, OregonH-1
Schedule of Property Tax Transactions
For the fiscal year ended June 30, 2011
(amounts in dollars)
Uncollected Adjustments, Uncollected
balancesCurrentinterest, and balances
Fiscal yearJuly 1, 2010year's levydiscountsCollectionsJune 30, 2011
1965-04610,82407,993(18,666)600,151
200568,6310(1,631)(5,706)61,294
200679,7400(5,690)(6,423)67,627
2007147,651021,986(75,601)94,036
2008587,524049,666(447,760)189,430
20091,302,8800(10,308)(595,258)697,314
20103,208,3790(52,480)(1,652,096)1,503,803
20110101,032,799(3,198,238)(95,139,974)2,694,587
Totals6,005,629101,032,799(3,188,702)(97,941,484)5,908,242
Summary by fund type
General Fund(79,050,114)4,864,972
Special Revenue Funds(3,436,060)215,694
Debt Service Funds(15,455,310)827,576
Totals(97,941,484)5,908,242
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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
its property taxes.
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.
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133
134
135
136
137
138
City of Eugene, Oregon
I-8
Ten Principal Property Taxpayers
Current year and seven years ago - unaudited
(amounts in dollars)
FY 2011FY 2004
PercentagePercentage
Totalof totalTotalof total
assessedassessedassessedassessed
Taxpayervaluevaluevaluevalue
PeaceHealth163,026,7941.40%26,828,1900.31%
Hynix Semiconductor122,377,6951.05%456,687,9355.21%
Comcast Corporation104,004,0000.90% -
-
Valley River Center LLC102,444,3620.88%77,129,5920.88%
Century Link (formerly QWEST)58,182,1000.50%102,625,3601.17%
Verizon Communications54,499,5000.47% -
-
McKay Investment Company49,521,9350.43%18,781,6900.21%
Northwest Natural Gas Company47,122,0000.41%33,742,0000.38%
Molecular Probes, Inc.37,410,6930.32% -
-
Chase Village LLC33,394,5990.29% -
-
Guard Publishing Company -28,550,2870.33%
-
Trus Joist, Inc. -23,352,6500.27%
-
Metropolitan Life Insurance Company -18,186,9510.21%
-
SHLP Financing LLC -28,476,4560.32%
-
Subtotal771,983,6786.65%814,361,1119.29%
All other taxpayers10,841,177,94093.35%7,958,736,60490.71%
Total taxpayers
11,613,161,618100.00%8,773,097,715100.00%
Notes
a) Total assessed value does not include exemptions.
b) Reliable top ten taxpayer information is not available prior to FY2004. Therefore, the City will use FY2004 for
comparative purposes until FY2014.
c) Comcast Corporation, Verizon Communications, Molecular Probes, Inc., and Chase Village LLC were not among
the top ten taxpayers in FY2004.
d) Guard Publishing Company, Trus Joist, Inc., Metropolitan Life Insuance Company, and SHLP Financing LLC were
not among the top ten taxpayers in FY2011.
e) In tax year 2009, Comcast appealed a significant increase in their taxable assessed value. Oregon Tax Court ruled
in favor of Comcast in August 2011; the Oregon Department of Revenue has appealed to the Oregon Supreme Court.
If the appeal is successful, Comcast would be entitled to a refund of a portion of the company's 2009 and 2010
taxes, and could be removed from the Top Ten Taxpayers List.
Data source
Lane County Department of Assessment and Taxation
City of Eugene Finance Division
139
140
City of Eugene, Oregon
I-10
Ratio of General Bonded Debt Outstanding
Last ten fiscal years - unaudited
(amounts in dollars)
General bonded debt outstanding
GeneralTaxPercentage
obligationCertificates ofincrementof real marketPer
Fiscal yearbondsparticipationLimited tax bondsbondsTotalvaluecapita
200235,865,00017,665,00075,491,461
0129,021,4611.21% 918
200342,010,00016,005,00076,053,652
0134,068,6521.26% 942
200445,955,00016,310,00076,560,046
0138,825,0461.24% 965
200543,300,00014,250,00077,013,970
0134,563,9701.08% 930
200641,195,00012,075,00078,291,989
0131,561,9890.93% 900
200739,660,0009,785,00070,659,254
0120,104,2540.60% 808
200840,130,0007,365,00070,504,879
0117,999,8790.52% 768
200940,176,2004,840,00070,211,643
0115,227,8430.49% 745
201035,389,4142,160,00069,672,223
0107,221,6370.48% 683
2011
32,844,1641,820,00065,030,2817,900,000107,594,4450.51% 682
Notes
a) Details regarding the City's outstanding debt can be found in the notes to the financial statements.
b) All debt is shown net of unamortized premiums and discounts.
c) Percentage of real market value was calculated using property value information from Schedule I-5.
d) Debt per capita was calculated using population data from Schedule I-14.
Data source
City of Eugene Finance Division
141
City of Eugene, Oregon
I-11
Direct and Overlapping Governmental Activities Debt
As of June 30, 2011 - unaudited
(amounts in dollars)
PercentageCity's share
Debtapplicableof overlapping
Governmental unitoutstandingto the Citydebt
City of Eugene100,056,442100.0000%100,056,442
Less: Funds available for principal payment(1,426,203)
City of Eugene net direct debt98,630,239
Junction City Water Control District243,3881.2100%2,945
Lane Community College99,892,09844.7500%44,701,714
Lane County115,034,75245.4300%52,260,288
Lane Education Service District7,780,00045.5000%3,539,900
School District 4J155,265,00077.5900%120,470,114
School District 19115,298,4200.0000%0
School District 5220,800,00079.0400%16,440,320
Total overlapping debt237,415,281
Total direct and overlapping debt336,045,520
Data source
Oregon State Treasury Debt Management Information System
City of Eugene Finance Division
142
143
City of Eugene, Oregon
I-13
Demographic and Economic Statistics
Last ten fiscal years - unaudited
City of EugeneLane County
Personal
UnemploymentincomePercapita
Fiscal yearPopulationratePopulation(thousands)income
2002140,5506.70%325,9008,491,42125,966
2003142,3807.50%328,1508,698,08126,344
2004143,9106.80%329,4009,213,72527,788
2005144,6405.50%333,3509,981,27629,841
2006146,1604.80%336,08510,483,14530,825
2007148,5954.60%339,74011,269,50832,877
2008153,6905.70%343,14011,679,99433,522
2009154,62010.10%345,88011,594,58933,522
2010157,10010.80%347,69011,655,26433,522
2011157,8459.60%348,55011,698,03533,562
Notes
a) Personal income information is not available for the City.
b) The 2009 and 2010 personal income for Lane County was not available and has been estimated by multiplying
population by per capital income.
c) The 2009 and 2010 per capita income was not available and has been estimated to be the same as 2008.
d) Population is reported as of July 1 of each fiscal year.
e) Unemployment rates presented are annualized for the calendar year through FY2008. The FY2011 unemployment
rate is as of July, 2011 (the most recent information available).
Data source
Portland State University’s Center for Population Research and Census
Bureau of Economic Analysis, U.S. Department of Commerce
Bureau of Labor Statistics, U.S. Department of Labor
Lane County Management Services
144
City of Eugene, Oregon
I-14
Ten Principal Employers
Current year and nine years ago - unaudited
20112002
PercentagePercentage
of totalof total
EmployerEmployeesemploymentEmployeesemployment
PeaceHealth Medical Group4,2122.59%4,0112.56%
University of Oregon4,0382.49%3,7472.39%
Eugene School District 4J2,7941.72%2,0441.30%
Lane County2,0001.23%1,3900.89%
State of Oregon1,9671.21%8680.55%
US Government1,7171.06% -0.00%
City of Eugene1,3800.85%1,4210.91%
Springfield School District1,3000.80% -0.00%
Lane Community College1,1180.69% 2,0001.28%
Walmart1,0500.65% -
-
Albertsons -800
- -
Hynix Semiconductor -790
- -
PSC Scanning -6360.41%
-
Total21,57613.29%17,70710.29%
Notes
a) Information provided for the Eugene/Springfield Metropolitan Service Area.
b) Employee count and percent of employment is as of January 1st of each year.
c) The US Government, Springfield School District and Walmart were not among the top ten employers in FY2002.
d) Albertsons, Hynix and PSC Scanning were not among the top ten employer in FY2011.
Data source
Eugene Chamber of Commerce
Oregon Employment Department
Lane County Financial Services
City of Eugene
145
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
20022251871511012954071,366
2003234192159962903921,363
2004236195168942933851,371
2005227200193912893901,390
20062302061901002933891,408
20072392041951133034031,457
20082382011901123034071,451
20092302031901112964101,440
2010217204181983063981,404
2011210200180943003961,380
Notes
a) This schedule was added with the implementation of GASB34, effective with FY2002.
b) 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
146
147
City of Eugene, Oregon
I-17
Capital Asset Statistics by Function/Program
Last ten fiscal years - unaudited
Fiscal Year
2002200320042005200620072008200920102011
Function/Program
Fire and emergency medical services:
Ambulances89910101111101010
Fire stations10101011111111111111
Fire apparatus25262423242329292929
Library, recreation, and cultural services:
Amphitheatre1111111111
Performing arts center1111111111
Community centers8888888888
9-hole golf course1111111111
Indoor/outdoor pool3333333333
Police:
Patrol vehicles57605151636365424243
Public works:
Jogging and hiking trails (miles)16232727292929282828
On/off street biking trails (miles)115119122122126130132153157157
Park acreage2,4002,4002,9022,9022,9023,1503,6703,6713,6713,987
Streets maintained (miles)501503510511516526538533533533
Alleys (miles)43434343424242424242
Sidewalks (miles)606616621622633654673700738772
Drainage Lines (miles)529506525518527567567567601601
Sanitary sewers (miles)754754770774781797807813815815
Data source
Individual City Departments
148
AUDIT COMMENTS AND GOVERNMENT
AUDITING STANDARDS SECTIONS
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.
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INDEPENDENT AUDITORS’ REPORT
REQUIRED BY OREGON STATE REGULATIONS
To the Honorable Mayor, Members of the
City Council and the City Manager
City of Eugene, Oregon
We have audited the basic financial statements of City of Eugene, Oregon as of and for the year
ended June 30, 2011, and have issued our report thereon dated December 15, 2011. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and Government Auditing Standards.
Compliance
As part of obtaining reasonable assurance about whether City of Eugene’s financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts and grants including provisions of Oregon Revised Statutes as
specified in Oregon Administrative Rules 162-10-000 to 162-10-320 of the Minimum Standards
for Audits of Oregon Municipal Corporations, noncompliance with which could have a direct and
material effect on determination of financial statements amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion.
We performed procedures to the extent we considered necessary to address the required
comments and disclosures which included, but were not limited to the following:
Deposit of public funds with financial institutions (ORS Chapter 295).
Indebtedness limitations, restrictions and repayment.
Budgets legally required (ORS Chapter 294).
Insurance and fidelity bonds in force or required by law.
Programs funded from outside sources.
Highway revenues used for public highways, roads, and streets.
Authorized investment of surplus funds (ORS Chapter 294).
Public contracts and purchasing (ORS Chapters 279A, 279B, 279C).
In connection with our testing nothing came to our attention that caused us to believe City of
Eugene was not in substantial compliance with certain provisions of laws, regulations, contracts,
and grants, including the provisions of Oregon Revised Statutes as specified in Oregon
Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of
Oregon Municipal Corporations except as follows:
1. Overexpenditures of appropriations are described in Note 3 to the financial
statements, Stewardship, Compliance, and Accountability.
151
OAR 162-10-0230 Internal Control
In planning and performing our audit, we considered City of Eugene’s internal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing
our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of City of Eugene’s internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the City internal control over financial reporting.
This report is intended solely for the information and use of the Honorable Mayor, members of the
City Council, the City Manager, management for the City of Eugene and the Oregon Secretary of
State and is not intended to be and should not be used by anyone other than those specified
parties.
ISLER CPA
By: Gary Iskra, CPA, a member of the firm
Eugene, Oregon
December 15, 2011
152
GOVERNMENT AUDITING STANDARDS
Government Auditing Standards Report
153
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154
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
To the Honorable Mayor and Members of the City Council
City of Eugene, Oregon
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of City of Eugene,
Oregon (“the City”) as of and for the year ended June 30, 2011, which collectively comprise the
City’s basic financial statements and have issued our report thereon dated December 15, 2011.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control over financial reporting. Accordingly, we do not express
an opinion on the effectiveness of City’s internal control over financial reporting.
Adeficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described
in the first paragraph of this section and was not designed to identify all deficiencies in internal
control over financial reporting that might be deficiencies, significant deficiencies or material
weaknesses. We did not identify any deficiencies in internal control over financial reporting that
we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit and, accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
155
This report is intended solely for the information and use of management, City Council, others
within the entity, and federal awarding agencies and pass-through entities and is not intended to
be and should not be used by anyone other than these specified parties.
Isler CPA
By Gary Iskra, CPA, a member of the firm
Eugene, Oregon
December 15, 2011
156
OMB Circular A-133 (Single Audit) Report
________
157
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158
REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD
HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
To the Honorable Mayor and Members of the City Council
City of Eugene, Oregon
Compliance
We have audited the City of Eugene’s (“the City”) compliance with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement that could have a
direct and material effect on each of its major federal programs for the year ended June 30, 2011.
The City’s major federal programs for the year ended June 30, 2011. The City’s major federal
programs are identified in the summary of auditor’s results section of the accompanying schedule
of findings and questioned costs. Compliance with the requirements of laws, regulations,
contracts, and grants applicable to each of its major federal programs is the responsibility of the
City’s management. Our responsibility is to express an opinion on the City’s compliance based
on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those
standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the City’s compliance
with those requirements and performing such other procedures as we considered necessary in
the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination of the City's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal
programs for the year ended June 30, 2011.
Internal Control Over Compliance
The management of the City is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts,and grants
applicable to federal programs. In planning and performing our audit, we considered the City’s
internal control over compliance with requirements that could have a direct and material effect on
a major federal program in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance and to test and report on internal control over compliance
in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of the City's internal control over compliance.
159
Adeficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weaknessin internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control
over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We
did not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.
This report is intended solely for the information and use of management, City Council, others
within the entity, federal awarding agencies, and pass-through entities and is not intended to be
and should not be used by anyone other than these specified parties.
Isler CPA
By Gary Iskra, CPA, a member of the firm
Eugene. Oregon
December 15, 2011
160
CITY OF EUGENE, OREGON
Schedule of Findings and Questioned Costs
June 30, 2011
Section I - Summary of Auditors’ Results
1. The auditors’ report expresses an unqualified 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 the 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.
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 Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133.
5. The auditors’ report on compliance for the major federal award programs for the City of Eugene
expresses an unqualified opinion on the major federal programs.
6. No audit findings relative to the major federal award programs for the City of Eugene are reported.
7. The programs tested as a major programs were:
(ARRA) Habitat Conservation, CFDA #11.463
Public Safety Interoperable Communications Grant Program, CFDA #11.555
CDBG – Entitlement Grants Cluster:
Community Development Block Grants/Entitlement Grants, CFDA #14.218
(ARRA) Community Development Block Grants/Entitlement Grants, CFDA #14.218
(ARRA) Community Development Block Grant Recovery (CDBG-R) Funds, CFDA #14.253
(ARRA) Homelessness Prevention and Rapid Re-Housing, CFDA #14.257
JAG Program Cluster:
Edward Byrne Memorial Justice Assistance Grant Program, CFDA #16.738
(ARRA) Edward Byrne Memorial Justice Assistance Grant (JAG) Program, CFDA #16.804
)
(ARRA) Energy Efficiency and Conservation Block Grant Program (EECBG, CFDA #81.128
Highway Planning and Construction, CFDA #20.205
8. The threshold for distinguishing between Type A and B programs was $407,197.
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
None
Section IV – Summary Schedule of Prior Audit Findings
None
161
City of Eugene, Oregon
J-1
Schedule of Expenditures of Federal Awards
For the fiscal year ended June 30, 2011
(amounts in dollars)Federal
CFDA
Federal Grantor Program TitlenumberGrant numberExpenditures
U.S. Department of Agriculture
Grants passed through State of Oregon:
(ARRA) Recovery Act of 2009: Wildland Fire Management10.688GRNT0570
$ 31,301
(ARRA) Recovery Act of 2009: Wildland Fire Management10.688GRNT056929,364
Total U.S. Department of Agriculture60,665
U.S. Department of Commerce
Direct program:
(ARRA) Habitat Conservation11.463NA09NMF4630300587,247
Grants passed through State of Oregon:
Public Safety Interoperable Communications Grant Program11.55507-407357,988
Total U.S. Department of Commerce945,235
U.S. Department of Housing and Urban Development
Direct program:
HOME Investment Partnerships Program 14.239M-08-DC-41-02002,005,967
Community Development Block Grants/BEDI14.246B-05-BD-41-0029734,769
(ARRA) Homelessness Prevention and Rapid Re-Housing14.257S-09-MY-41-0002376,482
Grants passed through State of Oregon:
Sustainable Communities Regional Planning Grant Program14.703n/a1,973
CDBG - Entitlement Grants Cluster:
Direct program:
Community Development Block Grants/Entitlement Grants14.218B-08-MC-41-00011,127,556
(ARRA) Community Development Block Grant Recovery (CDBG-R) Funds14.253B-09-MY-41-0001337,980
Grants passed through State of Oregon:
(ARRA) Community Development Block Grants/Entitlement Grants14.21801089-NSP174,072
Total CDBG - Entitlement Grants Cluster1,639,608
Total U.S. Department of Housing and Urban Development4,758,799
U.S. Department of the Interior
Direct program:
Bureau of Land Management Assistance Agreement15.DAKL08AC13286-000543,490
Bureau of Land Management Assistance Agreement15.DAKL10AC16159-000018,515
Fish, Wildlife and Plant Conservation Resource Management15.2312008-0056-00362,414
Fish, Wildlife and Plant Conservation Resource Management15.231L10AC2036654,831
Total U.S. Department of the Interior179,250
U.S. Department of Justice
Direct program:
Bulletproof Vest Partnership Program16.607n/a20,171
Grants passed through Lane County, Oregon:
Congressionally Recommended Awards16.7532011-032221,209
JAG Program Cluster:
Grants passed through Lane County, Oregon:
Edward Byrne Memorial Justice Assistance Grant Program16.7382007-DJ-BX-107650,313
(ARRA) Recovery Act - Edward Byrne Memorial Justice Assistance Grant16.8042009-SB-B9-1402155,526
Total JAG Program Cluster205,839
Total U.S. Department of Justice227,219
continued
162
City of Eugene, OregonJ-1, continued
Schedule of Expenditures of Federal Awards
For the fiscal year ended June 30, 2011
(amounts in dollars)Federal
CFDA
Federal Grantor Program TitlenumberGrant numberExpenditures
U.S. Department of Transportation
Direct program:
Airport Improvement Program20.1063-41-0018-044529,364
Airport Improvement Program20.1063-41-0018-045602,936
Airport Improvement Program20.1063-41-0018-046873,134
Payments for Small Community Air Service Development20.930OST-2010-01246,829
Grants passed through Oregon Association Chiefs of Police:
State and Community Highway Safety20.6002009-0321423,936
Minimum Penalties for Repeat Offenders for Driving While Intoxicated20.6082008-200914,490
Highway Planning and Construction Cluster:
Direct program:
Highway Planning and Construction20.205n/a40,375
Grants passed through State of Oregon:
Highway Planning and Construction20.20525302920,250
Highway Planning and Construction20.205233591,075,378
Highway Planning and Construction20.205234224,798
Highway Planning and Construction20.20525302310,000
Highway Planning and Construction20.2052465150,027
Highway Planning and Construction20.2052677822,300
Highway Planning and Construction20.2052685873,972
Highway Planning and Construction20.20526725312,100
Highway Planning and Construction20.20526415680,811
Grants passed through Lane Council of Governments:
Highway Planning and Construction20.2052010-0021732,771
Highway Planning and Construction20.2052011-0020740,000
Total Highway Planning and Contruction Cluster3,562,782
Total U.S. Department of Transportation5,613,471
U.S. Environmental Protection Agency
Direct program:
Climate Showcase Communities Grant Program66.041AF-83452601-020,332
Regional Wetland Program Development Grants66.461EPA-R10-WPDG2010661
Total U.S. Environmental Protection Agency20,993
U.S. Department of Energy
Direct program:
(ARRA) Energy Efficiency and Conservation Block Grant Program (EECBG)81.128DE-SC00018631,252,915
Total U.S. Department of Energy1,252,915
U.S. Department of Education
Grants passed through Eugene School District 4J:
Fund for the Improvement of Education84.215Q215F090921102,595
Twenty-First Century Community Learning Centers84.287673335,000
Twenty-First Century Community Learning Centers84.2871692374,980
Total U.S. Department of Education212,575
continued
163
City of Eugene, OregonJ-1, continued
Schedule of Expenditures of Federal Awards
For the fiscal year ended June 30, 2011
(amounts in dollars)Federal
CFDA
Federal Grantor Program TitlenumberGrant numberExpenditures
U.S. Department of Homeland Security
Grants passed through State of Oregon:
Emergency Management Performance Grants97.042n/a144,147
Citizen Corps97.05309-1082,229
Citizen Corps97.05310-1035,072
State Homeland Security Program (SHSP)97.07307-21632,075
State Homeland Security Program (SHSP)97.07308-220109,797
State Homeland Security Program (SHSP)97.07309-2283,879
State Homeland Security Program (SHSP)97.07309-1084,919
Total U.S. Department of Homeland Security302,118
Total Federal Financial Assistance$13,573,240
164
CITY OF EUGENE, OREGON
Notes to Schedule of Expenditures of Federal Awards
June 30, 2011
(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 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 of Eugene,
Oregon, 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 of Eugene, Oregon.
(2) Significant Accounting Policies
Basis of Presentation
The information in the Schedule is presented in accordance with OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations.
Federal Financial Assistance
Pursuant to the Single Audit Act of 1984 and OMB Circular A-133, 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 Single Audit Act of 1984 and OMB Circular A-133 establish criteria to be used in defining major
federal financial assistance programs. Major programs for the City of Eugene, Oregon are those
programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum
expenditure requirements, as outlined in OMB Circular A-133. Programs with similar requirements may
be grouped into a cluster for testing purposes.
Reporting Entity
The reporting entity is fully described in Note 1(A) to the City of Eugene, Oregon’s Basic Financial
Statements. Additionally, the Schedule includes all federal programs administered by the City of Eugene,
Oregon for the year ended June 30, 2011.
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.
165
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166
December 27, 2011
To the City Council
City of Eugene, Oregon
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Eugene for the year ended June
30, 2011, and have issued our report thereon dated December 15, 2011. Professional standards require
that we provide you with the following information related to our audit.
3YV6IWTSRWMFMPMX]YRHIV97+IRIVEPP]%GGITXIH%YHMXMRK7XERHEVHW
As stated in our engagement letter dated August 24, 2011, our responsibility, as described by professional
standards, is to express opinions about whether the financial statements prepared by management with
your oversight are fairly presented, in all material respects, in conformity with the modified cash basis of
accounting. Our audit of the financial statements does not relieve you or management of your
responsibilities.
4PERRIH7GSTIERH8MQMRKSJXLI%YHMX
We performed the audit according to the planned scope and timing previously communicated to you in our
engagement letter.
5YEPMXEXMZI%WTIGXWSJ%GGSYRXMRK4VEGXMGIW
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City of Eugene are described in Note (1) to the financial statements. We
noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. The most significant estimate affecting the financial statements was the determination of
depreciation on capital assets. The accounting policies relating to capital assets and depreciation are
described in footnote 1. J. to the comprehensive annual financial report.
(MJJMGYPXMIW)RGSYRXIVIHMR4IVJSVQMRKXLI%YHMX
We encountered no significant difficulties in dealing with management in performing and completing our
audit. There were no known or likely misstatements identified during the audit.
(MWEKVIIQIRXW[MXL1EREKIQIRX
For purposes of this letter, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant
to the financial statements or the auditor’s report. We are pleased to report that no such disagreements
arose during the course of our audit.
1EREKIQIRX6ITVIWIRXEXMSRW
We have requested certain representations from management that are included in the management
representation letter dated December 15, 2011.
1EREKIQIRX'SRWYPXEXMSRW[MXL3XLIV-RHITIRHIRX%GGSYRXERXW
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of
an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion
that may be expressed on those statements, our professional standards require the consulting accountant to
check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no
such consultations with other accountants.
3XLIV%YHMX*MRHMRKWSV-WWYIW
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
This information is intended solely for the use of the City Council and management of the City of Eugene
and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
-70)6'4%
&]+EV]-WOVEEQIQFIVSJXLIJMVQ