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Home My WebLink AboutItem 3C: Adoption of Resolution Acknowleding CAFR ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4996 Acknowledging Receipt of the City of Eugene, Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2009 Meeting Date: January 11, 2010 Agenda Item Number: 3C Department: Central Services Staff Contact: Fionan Cronin www.eugene-or.gov Contact Telephone Number: 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, 2009. 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, 2009, 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 work papers, 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. Z:\CMO\2010 Council Agendas\M100111\S1001113C.doc1 The key pages of the CAFR which you may wish to review are pages 11-12 and pages 155-156, 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. 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 General Obligation Debt Service Fund overspent its debt service payment authority by $169,897, or 2.7%. This occurred due to timing of repayments on the GO Line of Credit. 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. Two additional reports, beginning on page 159, 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. Starting with the fiscal year 2008 audit, there were new professional requirements mandating auditors to 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 for fiscal year 2009, is attached and it states that there were no concerns that required communication to you. 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, 2008. This was the thirty-third 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 Z:\CMO\2010 Council Agendas\M100111\S1001113C.doc 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, 2009, and demonstrates the council’s compliance with the policy. COUNCIL OPTIONS None. CITY MANAGER’S RECOMMENDATION The City Manager recommends adoption of Resolution 4996. SUGGESTED MOTION Move to adopt Resolution 4996 acknowledging receipt of the Comprehensive Annual Financial Report (CAFR) for the City of Eugene for the fiscal year ended June 30, 2009. ATTACHMENTS A.Resolution B.Copy of the 2009 Comprehensive Annual Financial Report C.Copy of the Isler CPA memo FOR MORE INFORMATION Staff Contact: Fionan Cronin Telephone: 682-5394 Staff E-Mail: finn.j.cronin@ci.eugene.or.us Z:\CMO\2010 Council Agendas\M100111\S1001113C.doc3 ATTACHMENT A RESOLUTION NO. 4996 A RESOLUTION ACKNOWLEDGING THE RECEIPT OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF EUGENE FOR THE FISCAL YEAR ENDED JUNE 30, 2009 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, 2009, 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, 2009. The foregoing resolution adopted the 11th day of January, 2010. City Recorder Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2009 Jon R. Ruiz, City Manager CITY OF EUGENE, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF EUGENE, OREGON FISCAL YEAR ENDED JUNE 30, 2009 REPORT PREPARED BY THE CITY FINANCE DIVISION ×ÒÌÎÑÜËÝÌÑÎÇ ÍÛÝÌ×ÑÒ CITY OF EUGENE, OREGON Comprehensive Annual Financial Report Year ended June 30, 2009 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 - 73 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 75 Community Development Fund A-2 76 Notes to Required Supplementary Information 77 - 78 Other Supplementary Information: Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet B-1 79 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances B-2 80 Special Revenue Funds: Combining Balance Sheet - Nonmajor Special Revenue Funds C-1 81 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Special Revenue Funds C-2 82 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Construction Permits Fund C-3 83 Library Local Option Levy Fund C-4 84 Library, Parks, and Recreation Fund C-5 85 Public Safety Answering Point Fund C-6 86 Road Fund C-7 87 Solid Waste and Recycling Fund C-8 88 Special Assessment Management Fund C-9 89 Telecom Registration and Licensing Fund C-10 90 Transportation Utility Fund C-11 91 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-12 92 Urban Renewal Agency Riverfront Fund C-13 93 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 Road Capital Projects Fund E-4 104 Special Assessment Capital Projects Fund E-5 105 Systems Development Capital Projects Fund E-6 106 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-7 107 Urban Renewal Agency Capital Projects Fund E-8 108 Urban Renewal Agency Riverfront Capital Projects Fund E-9 109 Enterprise Funds: Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual: Ambulance Transport Fund F-1 111 Municipal Airport Fund F-2 112 Parking Services Fund F-3 113 Stormwater Utility Fund F-4 114 Wastewater Utility Fund F-5 115 Internal Service Funds: Combining Statement of Net Assets G-1 117 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets G-2 119 Combining Statement of Cash Flows G-3 120 - 121 Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual: Facilities Services Fund G-4 122 Fleet Services Fund G-5 123 Information Systems and Services Fund G-6 124 Professional Services Fund G-7 125 Risk and Benefits Fund G-8 126 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-1 127 Schedule of Bonded Debt Transactions H-2 128 - 129 STATISTICAL TABLES SECTION Government-wide Information: Net Assets by Component I-1 131 Changes in Net Assets I-2 132 - 133 Fund Information: Fund Balances - Governmental Funds I-3 134 Changes in Fund Balances - Governmental Funds I-4 136 - 137 Taxable Assessed Value and Actual Value of Property I-5 138 Direct and Overlapping Property Tax Rates I-6 139 Property Tax Levies and Collections I-7 140 Ten Principal Property Taxpayers I-8 141 Ratio of Outstanding Debt by Type I-9 142 Ratio of General Bonded Debt Outstanding I-10 143 Direct and Overlapping Governmental Activities Debt I-11 144 Legal Debt Margin - General Obligation Bonded Debt I-12 145 Pledged-Revenue Coverage - Special Assessment Bonds I-13 146 Demographic and Economic Statistics I-14 147 Ten Principal Employers I-15 148 City Government Employees by Function/Program I-16 149 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-17 150 Capital Asset Statistics by Function/Program I-18 151 AUDIT COMMENTS AND GOVERNMENT AUDITING STANDARDS SECTIONS Audit Comments: Independent Auditors’ Report on Comments and Disclosures Required by State Statute 155 - 156 Government Auditing Standards: Government Auditing Standards Report: Independent Auditors’ Report on Internal Control Over Financial Reporting on Compliance and Other Matters Based on an Audit of Financial Statements Performed In Accordance with Government Auditing Standards 159 - 160 OMB Circular A-133 (Single Audit) Report: Independent Auditors’ Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 163 - 164 Schedule of Findings and Questioned Costs 165 Schedule of Expenditures of Federal Awards J-1 166 - 167 Notes to Schedule of Expenditures of Federal Awards 168 vi Central Services Finance Division City of Eugene th 100 W 10 Avenue, Suite 400 Eugene, Oregon 97401 (541) 682-5021 (541) 682-5802 FAX November 13, 2009 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, 2009. 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, 2009 are free of material misstatement. 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, 2009, are fairly presented, in all material respects, in conformity with GAAP. The independent auditor’s report on the Basic Financial Statements is included in the Financial Section of this report. In addition to meeting the requirements set forth above, the independent audit also was designed to meet the special needs of federal grantor agencies as provided for in the Federal Single Audit Act and the Office of Management and Budget’s (OMB) 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, 2009 indicated no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. The independent auditor’s reports related specifically to the Single Audit and OMB Circular A-133 are included in the Government Auditing Standards Section. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the Basic Financial Statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditor’s report on the basic financial statements. City Overview Incorporated in 1862, the citizens of Eugene 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, 2008, 154,620 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. Since 1990, Eugene’s population has increased an average of 1.7% annually, and the City’s area has increased by 7.75 square miles. The City provides a full range of municipal services. These services include: police, fire, emergency medical services, and municipal court; community planning and development; parks, library, recreational and cultural activities; airport, wastewater treatment, stormwater management, and general public works; and central services, administration, and 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 of the City 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 heldone 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. is at the fund and departmental level for current expenditures, with separate The legally adopted budget 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 are provided 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. 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 five 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. The Eugene economy typically follows the trends of the Oregon economy. The unemployment rate in Eugene has increase significantly in FY09 and has almost doubled from the year before, primarily due to job losses in manufacturing and construction sector. By June of 2009, the unemployment rate in Eugene was 10.6%, which was lower than the unemployment rates for Lane County (12.6%) and the State of Oregon (11.9%), but higher than the national unemployment rate of 9.5%: The two pillars that historically provided some stability in Eugene’s economy are its large public sector base and population in-migration. County, State and Federal government agencies are centered in Eugene, as well as the University of Oregon and Lane Community College. The public sector industry does not grow rapidly during periods of economic expansion, but also does not contract as fast when other parts of the economy are sluggish. In-migration is a second stabilizing driver to the local economy. Multiple characteristics play a role in encouraging new residents. The University of Oregon, excellent access to a wide range of recreational opportunities, attractive environmental amenities, mature and diverse arts and cultural offerings, and relative lower cost of living all play a role in encouraging a steady flow of new residents. California represents the largest source of new residents to the area due to Eugene’s proximity to that state. The influx of new residents has helped the economy diversify away from lumber and wood manufacturing. An increased share of employment is in non-manufacturing sectors, such as professional and business services, financial activities, and education and health services. It should be noted, however, that in FY09 population growth has slowed down to about 0.6% per year compared to an average of 1.4% from 2000 through 2008. Enrollment at the University of Oregon has remained stable at about 20,400 for several years. The University is a major center for academic and research activity. Its presence has contributed to the level of education in Eugene being well above the national average. In FY09, 39.5% of the City’s population had been awarded a Bachelor’s degree or higher. Eugene has become a hub for scientific research and educational support industries in Oregon. These emerging industries owe much of their growth to connections with the University of Oregon. Many owners, employees, and researchers of these businesses have ties with the university. Some have worked there; others have attended. The symbiotic relationship between the university and research and support industries has helped these industries grow and produce or contribute to the success of many new and innovative businesses. Health care and business/professional services job creation will also continue positive growth in the coming years. 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 out over the next six years. These forecasts are included in the published budget document. The City also utilizes three additional important planning documents: theCapital Improvement Program, the Multi-Year Financial Plan and the Debt Affordability Study. In February of 2009, the City Council approved the Capital Improvement Program for FY10 to FY15. 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 FY10-15 CIP totals about $178 million in projects with funding secured or identified from a variety of sources. Transportation is the largest CIP category with over a total allocation of $68.4 million, of which $52.3 million is dedicated towards pavement preservation, and another $16.1 million for other transportation projects. Airport capital improvements, including new airport fire rescue station, terminal building expansion and preservation and maintenance projects, will account for $44.6 million. About $29.6 million for public buildings will primarily be invested in preservation and capital maintenance of existing City facilities. Improvements to preserve and rehabilitate the City’s wastewater system will be funded with $13.2 million. Under the City’s stormwater program, stream corridor acquisition, bank stabilization and stream restoration, and system upgrades and capacity enhancements are to be funded at $12.7 million. Approximately $9.4 million in anticipated capital spending will be for parks and open space projects. In January 2009, the Mayor and members of the Budget Committee reviewed the Multi-Year Financial Plan for FY10 to FY15. The Multi-Year Financial Plan (MYFP) is an annual compilation of significant but unfunded challenges and opportunities that are likely to 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. 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 FY10-15 MYFP identified a total of about $527 million in unfunded challenges and opportunities that may occur within the next six years. Of this amount, $373.4 million is for unfunded capital projects, $11.4 for facility operating costs and $142 million is for program operating costs. City also With the significant amount of future capital projects, as well as identified unfunded needs, the 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 to be 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. As of June 30, 2009, the City’s net direct debt to real market value is 0.19%. City Council Vision and Goals Generally, every two years, after Councilor elections, the new City Council prepares goals for the biennium. These goals provide major policy direction for budget allocations, particularly in preparing the budget in the second year of the biennium. The City Council adopted the following vision and goals in May of 2009. COUNCIL VISION The Eugene City Council’s vision is to: 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. SAFE COMMUNITY all A community where people are safe, valued and welcome. SUSTAINABLE DEVELOPMENT A community that meets its present environmental, economic and social needs without compromising the ability of future generations to meet their own needs. ACCESSIBLE AND THRIVING CULTURE AND RECREATION A community where arts and outdoors are integral to our social and economic well-being and are available to all. EFFECTIVE, ACCOUNTABLE MUNICIPAL GOVERNMENT A government that works openly, collaboratively, and fairly with the community to achieve measurable and positive outcomes and provide effective, efficient services. FAIR, STABLE AND ADEQUATE FINANCIAL RESOURCES A government whose ongoing financial resources are based on a fair and equitable system of revenues and are adequate to maintain and deliver municipal services. In order to achieve these goals, the City Council has identified the following major initiatives: Race. Enhance understanding of race issues and improve community relationships. Homeless Initiative. Continue to work collaboratively with our community partners to end chronic homelessness in 10 years. City Hall. Adopt implementation plan for parallel process for City Hall planning and Police Facility acquisition. Neighborhood Empowerment. Redesign the neighborhood initiative to support the neighborhoods which includes public participation in the livability and protection of neighborhoods and identifies specific redevelopment strategies that preserves the integrity of residential uses, including design standards, site review, down zoning, infill regulation, and bolstering and empowering neighborhood associations to get more involvement. Arts and Outdoors. Strengthen our commitment to community arts and outdoor assets. Sustainability Initiative. Develop Sustainability Office and Sustainability Commission that supports broad sustainable practices and creates a tool chest of things needed to support businesses that produce sustainable products or provide or utilize sustainable practices. CITY OF EUGENE, OREGON Eugene City Hall 777 Pearl Street Eugene, Oregon 97401 Mayor and City Council as of June 30, 2009 NameTerm Expires Mayor:Kitty Piercy January 2013 Councilors: George Brown (Ward 1) January 2013 Betty Taylor (Ward 2) January 2013 Alan Zelenka (Ward 3) January 2011 George Poling (Ward 4) January 2011 Mike Clark (Ward 5) January 2011 Jennifer Solomon (Ward 6) January 2011 Andrea Ortiz (Ward 7) January 2013 Chris Pryor (Ward 8) January 2013 Principal Officials Jon R. Ruiz, City Manager Sarah Medary, Assistant City Manager Kristie Hammitt, Acting Central Services Executive Director Randall B. Groves, Fire and Emergency Medical Services Chief Renee Grube, Acting Library, Recreation, and Cultural Services Executive Director Susan L. Muir, Planning and Development Executive Director Pete Kerns, Acting Chief of Police Kurt Corey, Public Works Executive Director (this page intentionally left blank) Ú×ÒßÒÝ×ßÔ ÍÛÝÌ×ÑÒ óîø÷ì÷îø÷îèûçøóèíêªéê÷ìíêè 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 (City) as of and for the year ended June 30, 2009, 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, 2009, 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 November 13, 2009, 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. The management’s discussion and analysis on pages 13 through 22; budgetary comparison information on pages 75 and 76 and, the schedule of pension funding progress on page 77, are not required parts of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures to the management’s discussion and analysis on page 13 through 22 and the schedule of pension funding progress on page 77, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. The Schedules of revenues, expenditures, and changes in fund balance – budget and actual, on pages 75 and 76 have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in relation to the basic financial statements taken as a whole. 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, other supplementary information, and statistical tables section 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, and is also not a required part of the basic financial statements. The other supplementary information and the schedule of expenditures of federal awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are 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 express no opinion on them. ISLER CPA By: Paul Nielson, CPA, a member of the firm Eugene, Oregon November 13, 2009 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, 2009. This Management’s Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the date of the independent auditor’s report. Additional information outside the scope of this analysis can be found in the Letter of Transmittal. Financial Highlights The City’s total assets at June 30, 2009 decreased $1.3 million from $910.7 million to $909.4 million, or 0.1% from the prior year. The primary cause for the decrease in total assets was the reduction of $11.1 million in equity in pooled cash and investments which was partially offset by the addition of $8.2 million in capital assets. The City’s total liabilities decreased $1.5 million from $163.2 million to $161.7 million. The decrease was largely due to a $2.8 million decrease in bonded debt and a $1.2 million decrease in unearned revenue, which were offset by a $2.4 million increase in notes and contracts payable. The net assets of the City (assets less liabilities) at June 30, 2009 increased $0.2 million from $747.5 million to $747.7 million from the prior year. Total net assets of $107.0 million are unrestricted. At June 30, 2009, the City’s governmental funds reported combined ending fund balances of $84.2 million, a decrease of $2.5 million in comparison to the prior year. Approximately $80.5 million is unreserved and available for spending at the government’s discretion, subject to reporting fund-type limitations. The General Fund’s unreserved fund balance at the end of the current fiscal year was $32.1 million, or 28.3% 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 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 24 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 20 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-13, 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. 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 $747.7 million at the close of the fiscal year ending June 30, 2009. City of Eugene's Net Assets Governmental Activities Business-type Activities Total 2009 2008 2009 2008 2009 2008 Capital assets $ 394,128,747 388,484,262 237,502,482 234,984,718 631,631,229 623,468,980 Other assets 241,896,507 245,262,949 35,855,233 41,959,627 277,751,740 287,222,576 Total assets 636,025,254 633,747,211 273,357,715 276,944,345 909,382,969 910,691,556 Noncurrent liabilities 110,062,606 111,385,305 4,991,191 5,905,022 115,053,797 117,290,327 Other liabilities 40,035,534 39,083,247 6,580,305 6,866,569 46,615,839 45,949,816 Total liabilities 150,098,140 150,468,552 11,571,496 12,771,591 161,669,636 163,240,143 Net assets: Invested in capital assets, net of related debt 345,073,199 337,614,504 232,335,631 229,495,712 577,408,830 567,110,216 Restricted 53,962,044 53,057,936 9,373,596 9,355,894 63,335,640 62,413,830 Unrestricted 86,891,871 92,606,219 20,076,992 25,321,148 106,968,863 117,927,367 Total net assets $ 485,927,114 483,278,659 261,786,219 264,172,754 747,713,333 747,451,413 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, $63.3 million (8.5%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of net assets $107.0 million (14.3%) are unrestricted and may be used to meet the government’s ongoing obligations to citizens and creditors. City of Eugene's Changes in Net Assets Governmental ActivitiesBusiness-type ActivitiesTotal Revenues:200920082009200820092008 Program revenues: Fees, fines, and charges for services$33,259,06432,873,70649,771,99948,562,60683,031,06381,436,312 Operating grants and contributions12,404,85718,105,37901,005,22912,404,85719,110,608 Capital grants and contributions10,628,4467,820,0363,977,2299,286,52114,605,67517,106,557 General revenues: Taxes91,119,82388,815,5510091,119,82388,815,551 Grants and contributions not restricted to specific programs752,6023,308,74200752,6023,308,742 Contributions in lieu of taxes13,263,98211,446,5370013,263,98211,446,537 Franchise fees on telecom providers revenues9,029,3498,870,285009,029,3498,870,285 Unrestricted investment earnings3,720,2456,221,900729,5101,035,2044,449,7557,257,104 Total revenues174,178,368177,462,13654,478,73859,889,560228,657,106237,351,696 Expenses: Central services9,217,7258,705,558009,217,7258,705,558 Fire and emergency medical services27,345,00627,597,1550027,345,00627,597,155 Library, recreation, and cultural services29,681,41227,418,6130029,681,41227,418,613 Planning and development20,978,97721,760,0650020,978,97721,760,065 Police48,533,01746,876,0210048,533,01746,876,021 Public works29,139,23529,077,4930029,139,23529,077,493 Interest on long-term debt6,654,8876,635,966006,654,8876,635,966 Ambulance transport006,773,2495,971,2826,773,2495,971,282 Municipal airport0010,261,5989,910,11410,261,5989,910,114 Parking services004,756,5554,249,5634,756,5554,249,563 Stormwater utility0011,578,52911,272,13211,578,52911,272,132 Wastewater utility0023,474,99619,969,12223,474,99619,969,122 Total expenses171,550,259168,070,87156,844,92751,372,213228,395,186219,443,084 Increase (decrease) in net assets before transfers2,628,1099,391,265(2,366,189)8,517,347261,92017,908,612 Transfers20,3463,230,406(20,346)(3,230,406)00 Increase (decrease) in net assets after transfers2,648,45512,621,671(2,386,535)5,286,941261,92017,908,612 Net assets, July 1483,278,659470,656,988264,172,754258,885,813747,451,413729,542,801 Net assets, June 30$485,927,114483,278,659261,786,219264,172,754747,713,333747,451,413 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 $9.4 million in the prior year to $2.6 million in the current year. The decrease of $6.8 million between the two years was driven by the following factors: Operating grants and contributions decreased $5.7 million during the year, primarily due to a $1.6 million decrease in Public Safety Partnership and Community Policing grant, a $1.1 million decrease in Home Investment Partnerships Program grants, a $0.8 million decrease in assistance to firefighters grant, and a $0.4 million decrease in Department of Homeland Security grants. 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. The next chart shows the percent of the total for each source of revenue supporting governmental activities. Business-type activities. Business-type activities decreased the City’s net assets by $2.4 million before transfers. The decrease was driven by the following factors: Capital grants and contributions decreased $5.3 million during the year, primarily due to a $4.9 million decrease in Federal Aviation Administration grants. Wastewater utility expenditures increased $3.5 million during the year, mainly due to a $3.3 million increase in capital expenditures. 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. Business-type Activities Program Revenues Program Revenues and Expenses Expenses 6.1 Ambulance transport 6.8 9.8 Municipal airport 10.3 4.3 Parking services 4.8 12.8 Stormwater utility 11.6 20.7 Wastewater utility 23.5 (in millions of dollars) The chart below shows that 91.4% 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 Capital assets . The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2009 amounted to $631.6 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 1.3%. City of Eugene's Capital Assets, Net of Accumulated Depreciation Governmental Activities Business-type Activities Total 2009 2008 2009 2008 2009 2008 Land $ 66,965,650 54,946,065 13,834,865 13,475,026 80,800,515 68,421,091 Construction in progress 15,230,293 24,101,519 7,250,797 14,512,503 22,481,090 38,614,022 Buildings and equipment 146,130,373 150,286,856 36,982,294 37,326,831 183,112,667 187,613,687 Improvements other than buildings 39,236,079 35,424,116 47,854,892 43,125,594 87,090,971 78,549,710 Storm sewers and trunk sewers 0 0 131,579,634 126,544,765 131,579,634 126,544,765 Infrastructure 126,566,352 123,725,706 0 0 126,566,352 123,725,706 $ 394,128,747 388,484,262 237,502,482 234,984,718 631,631,229 623,468,980 Major capital asset additions during the current fiscal year included land 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 $161.7 million. Of this amount, $115.2 million represented outstanding bonded indebtedness. Outstanding bonded debt included $40.2 million in general obligation bonds to be serviced by general property taxes, $1.1 million in certificates of participation to be serviced by general property taxes, $2.3 million in certificates of participation to be serviced by tax increment revenues, $0.6 million in limited tax improvement bonds to be serviced by property owners subject to the improvements, and $64.4 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 $5.2 million in limited tax bonds and $1.4 million in certificates of participation, all serviced by specific fund revenues. City of Eugene's Bonded Debt Governmental Activities Business-type Activities Total 2009 2008 2009 2008 2009 2008 General obligation bonds $ 107,867,141 40,130,000 00 107,867,141 40,130,000 Certificates of participation 65,031,643 7,365,000 00 65,031,643 7,365,000 Limited tax bonds 0 64,999,879 0 5,505,000 0 70,504,879 Deferred amounts 4,074,572 20,699 103,975 (15,994) 4,178,547 4,705 $ 176,973,356 112,515,578 103,975 5,489,006 177,077,331 118,004,584 The City’s total bonded debt decreased by $2.8 million (2.4%) during the current fiscal year, due to $14.3 million in scheduled debt payments, less $10.4 million in General Obligation Bond and Revolving Credit Facility draws and $1.1 million in accretion of deep discounts on limited tax pension bonds. Moody’s Investors Service rates most of the City’s bond issues. The City’s most recent ratings from Moody’s are as follows: Aa2 for general obligation bonds (February 2006) 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. Ambac Assurance is currently rated as Caa2. 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. Aa3 for full faith and credit obligations, which includes the Library Obligations, the Atrium Obligations, the Santa Clara Fire Station Obligations, and the Broadway Garages Limited Tax Bonds (October 2003). A3 underlying and Caa2 insured for the pension obligations. The pension obligations are insured by Ambac Assurance and were rated Aaa at issuance. Subsequent to issuance, Ambac Assurance was downgraded by Moody’s Investors Service. Ambac Assurance is currently rated as Caa2. 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% of the real market value of all taxable property within the City’s boundaries. The $40.2 million in general obligation debt applicable to this limit, plus a $0.5 million deficit in the General Obligation Debt Service Fund, is well below the $703.4 million ceiling. The City’s net direct general obligation bonded debt per capita is $263. Additional information on the City’s bonded debt can be found in the Notes to Basic Financial Statements (Note 4I). 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. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $84.2 million, a decrease of $2.5 million in comparison to the prior year. Approximately 95.6% of this total amount ($80.5 million) constitutes unreserved fund balance, which is available for spending at the government’s discretion, subject to reporting fund-type limitations. The remainder of fund balance is reserved, indicating that it is not available for new spending because it has been reserved for other purposes ($3.7 million). Reservations of fund balance are for the following purposes: 1) prepaid expenditures, 2) debt service, 3) inventories, and 4) assets held for resale. The fund balance of the City’s General Fund increased $2.1 million from $30.4 million to $32.5 million during the current fiscal year. The increase was caused by a $0.8 million increase in revenues over the prior year, most notably a $5.3 million increase in tax revenues that was offset by a $2.8 million decrease in intergovernmental revenues and a $1.0 million decrease in miscellaneous revenues. Expenditures were down $1.2 million compared to the prior year, mostly due to a $1.9 million decrease in central services expenditures and a $1.0 million decrease in police expenditures. These reductions were partially offset by a $1.2 million increase in library, recreation, and cultural services expenditures. The fund balance in the Community Development Fund decreased $0.2 million from $2.0 million to $1.8 million during the current fiscal year. The decrease was primarily due to a $0.6 million decrease in grant revenues which was offset by a $1.1 million decrease in expenditures. The fund balance in the General Capital Projects Fund decreased $1.2 million from $6.5 million to $5.3 million during the current fiscal year. The decrease in the fund balance was caused by current year expenditures of $8.5 million, which were in excess of current year revenues requiring the utilization of $1.2 million in resources accumulated in prior years. The fund balance in the Systems Development Capital Projects Fund decreased $4.8 million from $10.4 million to $5.6 million during the current fiscal year. The decrease was largely due to current year expenditures of $7.6 million, which were in excess of current year revenues requiring the utilization of $4.8 million in resources accumulated in prior years. . 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: $ (0.1) million (-18.1%) Ambulance Transport 3.6 million (4.3%) Municipal Airport 0.2 million (1.2%) Parking Services 7.4 million (13.8%) Stormwater Utility 2.7 million (2.7%) Wastewater Utility Total business-type net assets decreased $1.5 million in the current fiscal year. Significant issues regarding proprietary funds are as follows: The Ambulance Transport Fund reported a $0.8 million decrease in net assets. The decrease was mainly due to a $0.4 million increase in vehicle maintenance and replacement costs, a $0.1 million increase personnel costs, and a $0.1 million decrease in operating revenues. The Municipal Airport Fund reported a $0.3 million decrease in net assets. The decrease was mainly due to $3.2 million in operating losses that were offset by $2.8 million in capital contributions. The Parking Services Fund reported a $0.7 million decrease in net assets. The decrease was primarily the result of a $0.4 million decrease in operating revenues. The Stormwater Utility Fund reported a $1.7 million increase in net assets. The increase was principally due to capital contributions of $1.0 million from developers for stormwater improvements, $0.4 million in operating income, and $0.2 million in interest revenue. The Wastewater Utility Fund reported a $1.3 million decrease in net assets. The decrease was mainly due to $2.7 million in operating losses that were offset by $1.2 million in capital contributions for wastewater improvements and infrastructure. 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 2009 budget for the General Fund was increased by $5.8 million. The primary reasons for this increase are as follows: $3.1 million increase to police, including $0.9 million for grant-funded activities, $0.8 million in carry-forward appropriations, $0.5 million for staffing costs for the 2008 U.S. Olympic Track and Field Trials, and $0.5 million in reimbursements for fire dispatch services. $0.8 million increase to planning and development, including $0.3 million for a comprehensive land study and $0.2 million for the Neighborhood Initiative program. $0.8 million increase to central services, including $0.4 million in carry-forward appropriations and $0.2 for equipment replacement. $0.4 million increase to fire and emergency medical services, including $0.2 million for grant funded- activities and $0.1 million for staffing costs for the 2008 U.S. Olympic Track and Field Trials. These changes were funded primarily by an increase of $1.2 million in intergovernmental revenues and $3.8 million in unspent resources from the prior year. The net increase of $2.0 million in budget-basis fund balance for the year ended June 30, 2009 was a significant improvement over the projected deficit of $6.7 million in the General Fund final amended budget. Actual revenues were $1.7 million lower than budget, primarily due to charges for services and intergovernmental revenues that were $0.8 million and $0.7 million, respectively below budget projections. On the expenditure side, departments under-spent their budgets by a total of $9.5 million. The significant changes were in Police ($3.6 million), Central Services ($1.8 million), and Library, Recreation, and Cultural Services ($1.6 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 2010 budget: Interest rates on investments will be 1.0%. Property tax revenue is expected to increase 7.4% in FY 2010. Salaries for Non-represented and International Alliance of Theatrical Stage Employees union members will remain unchanged, the other collectively bargained agreements will increase between 3.8% - 4.1%. Health benefit rates will increase by 6.5%. PERS costs are expected to be 22% of payroll. During the current fiscal year, budget-basis unreserved fund balance in the General Fund decreased to $32.0 million, an increase of $2.0 million over the prior year. City staff will be submitting a FY 2010 supplemental budget to the City Council in December which appropriates $1.6 million in FY 2009 ending fund balance for reappropriations. 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 Financial Reporting Manager City of Eugene th 100 West 10 Avenue, Suite 400 Eugene, Oregon 97401 ÞßÍ×Ý Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ Exhibit 1 City of Eugene, Oregon Statement of Net Assets June 30, 2009 (amounts in dollars) GovernmentalBusiness-type AssetsActivitiesActivitiesTotal Current assets Equity in pooled cash and investments150,528,58022,419,396172,947,976 Receivables (net of allowance)26,240,4264,314,49730,554,923 Internal balances(6,331,357)6,331,3570 Due from other governments5,018,0771,633,1646,651,241 Inventories1,159,220782,7491,941,969 Prepaids and deposits499,0356,256505,291 Assets held for resale2,407,96702,407,967 Total current assets179,521,94835,487,419215,009,367 Noncurrent assets Loans and notes receivable0353,256353,256 Deferred charges1,154,19514,5581,168,753 Pension assets61,220,364061,220,364 Capital assets: Land and construction in progress82,195,94321,085,662103,281,605 Other capital assets (net of accumulated depreciation)311,932,804216,416,820528,349,624 Total noncurrent assets456,503,306237,870,296694,373,602 Total assets636,025,254273,357,715909,382,969 Liabilities Current liabilities Accounts payable2,731,2931,468,1114,199,404 Wages payable6,416,4821,358,3127,774,794 Compensated absences payable7,840,9661,638,4499,479,415 Due to other governments1,323,26938,7081,361,977 Claims payable10,133,777010,133,777 Deposits1,462,026713,5052,175,531 Notes and contracts payable174,3180174,318 Interest payable453,621150,159603,780 Unearned revenue2,337,796843,0613,180,857 General obligation bond and revolving credit facility485,0000485,000 Certificates of participation payable2,680,00002,680,000 Bonds payable3,996,986370,0004,366,986 Total current liabilities40,035,5346,580,30546,615,839 Noncurrent liabilities Compensated absences payable347,09190,365437,456 Rebatable arbitrage48,588048,588 Notes and contracts payable2,706,00002,706,000 General obligation bond and revolving credit facility1,696,20001,696,200 Certificates of participation payable2,160,00002,160,000 Bonds payable (net of unamortized discount/premium)99,030,1554,796,851103,827,006 Net OPEB obligation4,074,572103,9754,178,547 Total noncurrent liabilities110,062,6064,991,191115,053,797 Total liabilities150,098,14011,571,496161,669,636 Net assets Invested in capital assets (net of related debt)345,073,199232,335,631577,408,830 Restricted for: Capital projects17,115,7017,222,60924,338,310 Debt service815,3602,150,9872,966,347 Community development15,559,285015,559,285 Urban renewal15,275,722015,275,722 Other purposes5,195,97605,195,976 Unrestricted86,891,87120,076,992106,968,863 Total net assets485,927,114261,786,219747,713,333 The accompanying notes are an integral part of the financial statements. Exhibit 2 City of Eugene, Oregon Statement of Activities For the fiscal year ended June 30, 2009 (amounts in dollars) Net (Expense) Revenue and Program RevenuesChanges in Net Assets Fees, IndirectFines, andOperatingCapital DirectExpensesCharges forGrants andGrants andGovernmentalBusiness-type ExpensesAllocationServicesContributionsContributionsActivitiesActivitiesTotal Functions/Programs Governmental activities: Central services27,856,808(18,639,083)5,966,89116,5670(3,234,267)0(3,234,267) Fire and emergency medical services23,884,0723,460,9342,212,104257,2950(24,875,607)0(24,875,607) Library, recreation, and cultural services27,009,3372,672,0755,713,783465,6960(23,501,933)0(23,501,933) Planning and development19,391,5751,587,40211,193,0073,633,8330(6,152,137)0(6,152,137) Police42,764,1235,768,8944,061,2841,824,9280(42,646,805)0(42,646,805) Public works27,358,4571,780,7784,111,9956,206,53810,628,446(8,192,256)0(8,192,256) Interest on long term debt6,654,8870000(6,654,887)0(6,654,887) Total governmental activities174,919,259(3,369,000)33,259,06412,404,85710,628,446(115,257,892)0(115,257,892) Business-type activities: Ambulance transport6,394,249379,0006,077,414000(695,835)(695,835) Municipal airport9,758,598503,0006,982,76002,833,7160(445,122)(445,122) Parking services4,565,555191,0004,320,201000(436,354)(436,354) Stormwater utility10,657,529921,00011,849,4710948,24201,219,1841,219,184 Wastewater utility22,099,9961,375,00020,542,1530195,2710(2,737,572)(2,737,572) Total business-type activities53,475,9273,369,00049,771,99903,977,2290(3,095,699)(3,095,699) Total activities228,395,186083,031,06312,404,85714,605,675(115,257,892)(3,095,699)(118,353,591) General revenues: Property taxes86,465,150086,465,150 Transient room tax1,678,56601,678,566 Local motor vehicle fuel tax2,976,10702,976,107 Contributions in lieu of taxes13,263,982013,263,982 Franchise fees on telecom provider's revenues9,029,34909,029,349 Grants and contributions not restricted to specific programs752,6020752,602 Unrestricted investment earnings3,720,245729,5104,449,755 Transfers20,346(20,346)0 Total general revenues and transfers117,906,347709,164118,615,511 Change in net assets2,648,455(2,386,535)261,920 Net assets, July 1, 2008483,278,659264,172,754747,451,413 Net assets, June 30, 2009485,927,114261,786,219747,713,333 The accompanying notes are an integral part of the financial statements. City of Eugene, OregonExhibit 3 Balance Sheet Governmental Funds June 30, 2009Systems (amounts in dollars)GeneralDevelopmentOtherTotal CommunityCapitalCapitalGovernmentalGovernmental GeneralDevelopmentProjectsProjectsFundsFunds Assets Equity in pooled cash and investments35,878,1211,429,6655,345,2676,097,83737,206,57085,957,460 Receivables: Interest884,11353,97700156,1301,094,220 Taxes4,551,161000719,2025,270,363 Accounts2,366,73333,0262,190649,253751,4463,802,648 Assessments00001,008,9071,008,907 Loans and notes014,311,79941,16812,8401,474,64315,840,450 Allowance for uncollectibles(699)000(700)(1,399) Due from other funds9,19200009,192 Due from other governments2,129,038525,89036,48102,228,4644,919,873 Inventories0000861,689861,689 Prepaids and deposits405,65000030,185435,835 Assets held for resale00002,407,9672,407,967 Total assets46,223,30916,354,3575,425,1066,759,93046,844,503121,607,205 Liabilities and fund balances Liabilities Accounts payable512,25213,24848,208490,6931,303,1792,367,580 Wages payable4,897,44233,13904,142640,8035,575,526 Due to other funds00009,1929,192 Due to other governments670,031190,67116,72912,830409,2991,299,560 Deposits460,484000909,3001,369,784 Deferred revenue7,167,51314,276,34841,169617,9684,166,77926,269,777 General obligation bond and revolving credit facility0000485,000485,000 Total liabilities13,707,72214,513,406106,1061,125,6337,923,55237,376,419 Fund balances Reserved for prepaid expenditures405,65000030,185435,835 Reserved for debt service000031,24231,242 Reserved for inventories0000861,689861,689 Reserved for assets held for resale00002,407,9672,407,967 Unreserved32,109,9371,840,9515,319,0005,634,297044,904,185 Unreserved, reported in nonmajor: Special revenue funds000026,149,75526,149,755 Debt service funds00005,790,0085,790,008 Capital project funds00003,650,1053,650,105 Total fund balances32,515,5871,840,9515,319,0005,634,29738,920,95184,230,786 Total liabilities and fund balances46,223,30916,354,3575,425,1066,759,93046,844,503 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.23,255,384 Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Assets at their net depreciable value.370,928,397 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.(54,004,692) 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.61,517,239 Net assets of governmental activities485,927,114 The accompanying notes are an integral part of the financial statements. Exhibit 4 City of Eugene, Oregon Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the fiscal year ended June 30, 2009 (amounts in dollars) Systems GeneralDevelopmentOtherTotal CommunityCapitalCapitalGovernmentalGovernmental GeneralDevelopmentProjectsProjectsFundsFunds Revenues Taxes89,336,22500014,409,713103,745,938 Licenses and permits6,351,1560005,772,99212,124,148 Intergovernmental4,850,2322,947,50139,024013,711,17021,547,927 Rental income101,567048,39281,627146,035377,621 Charges for services11,120,81919,24802,453,0783,683,89117,277,036 Fines and forfeits3,063,76300046,8143,110,577 Special assessments0000209,188209,188 Repayment of revolving loans01,696,5360029,4421,725,978 Miscellaneous1,238,923526,517181,585284,7192,580,3024,812,046 Total revenues116,062,6855,189,802269,0012,819,42440,589,547164,930,459 Expenditures Current - departmental: Central services15,250,30375,0008,11476,0003,303,69018,713,107 Fire and emergency medical services22,435,026000232,93522,667,961 Library, recreation, and cultural services21,733,6810002,695,01224,428,693 Planning and development7,371,1714,553,186070,3536,272,02918,266,739 Police39,772,1630002,105,55241,877,715 Public works6,704,03700221,5599,462,05616,387,652 Debt service: Principal210,00000339,5207,111,3147,660,834 p,,,,,, Interest44,14556,55822,72817,0681,860,3752,000,874 Arbitrage fee006,900006,900 Issuance costs009,370022,88332,253 Capital outlay0208,1788,425,0736,863,5499,004,73024,501,530 Total expenditures113,520,5264,892,9228,472,1857,588,04942,070,576176,544,258 Excess (deficiency) of revenues over expenditures2,542,159296,880(8,203,184)(4,768,625)(1,481,029)(11,613,799) Other financing sources (uses) Proceeds of debt issuance004,345,000004,345,000 Proceeds of refunding bonds issuance00005,600,0005,600,000 Proceeds of note issuance02,705,9300002,705,930 Refunded bonds redeemed0000(5,593,800)(5,593,800) Transfers in3,126,01502,649,37809,041,14614,816,539 Transfers out(3,599,212)(3,195,930)00(5,987,849)(12,782,991) Total other financing sources (uses)(473,197)(490,000)6,994,37803,059,4979,090,678 Net change in fund balances2,068,962(193,120)(1,208,806)(4,768,625)1,578,468(2,523,121) Fund balances, July 1, 200830,446,6252,034,0716,527,80610,402,92237,342,48386,753,907 Fund balances, June 30, 200932,515,5871,840,9515,319,0005,634,29738,920,95184,230,786 The accompanying notes are an integral part of the financial statements. 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, 2009 (amounts in dollars) Net change in fund balances - total governmental funds(2,523,121) 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.3,693,932 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.2,615,953 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.1,737,406 Capital outlays are 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.6,060,540 Proceedsfromtheissuanceoflong--termdebtprovidecurrentfinancialresourcestogovernmental Proceedsfromtheissuanceoflongtermdebtprovidecurrentfinancialresourcestogovernmental 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.603,634 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.(1,440,883) 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.(8,099,006) Change in net assets of governmental activities2,648,455 The accompanying notes are an integral part of the financial statements. (this page intentionally left blank) 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, 2009 (amounts in dollars) Business-type Activities Governmental Enterprise Funds Activities Total AmbulanceMunicipalParkingStormwaterWastewaterInternal Service TransportAirportServicesUtilityUtilityTotalsFunds Operating revenues Licenses and permits00073,203073,2031,990 Intergovernmental00000063,448 Rental income02,790,252562,29839,14524,9603,416,655789,389 Charges for services5,985,2474,157,5252,918,34511,721,07820,372,19545,154,39054,969,033 Fines and forfeits07,900833,6421,1604,676847,37823,000 Miscellaneous92,16727,0835,91614,885140,322280,37386,809 Total operating revenues6,077,4146,982,7604,320,20111,849,47120,542,15349,771,99955,933,669 Operating expenses Personnel services4,501,3233,539,3141,218,5095,653,4129,296,53624,209,09415,700,093 Contractual services370,906844,673704,3031,716,4221,268,8504,905,1546,123,581 Materials and supplies249,383616,88768,142433,9694,738,0586,106,4394,466,131 Maintenance958,416354,9061,078,7041,252,8941,776,7395,421,6591,791,903 Utilities27,599370,71620,16284,915798,7531,302,1453,088,843 Rent01,56240,40058,22163,925164,108428,899 Taxes0034,3880034,38811,494 Insurance15,45473,35438,80525,63463,409216,6561,820,201 Claims00000018,583,915 Central business functions379,000503,000191,000921,0001,375,0003,369,0002,157,000 Depreciation59,5933,901,999781,4661,262,8943,818,0859,824,0373,156,922 Intergovernmental0000004,500,000 Total operating expenses6,561,67410,206,4114,175,87911,409,36123,199,35555,552,68061,828,982 Operating income (loss)(484,260)(3,223,651)144,322440,110(2,657,202)(5,780,681)(5,895,313) Nonoperating revenues (expenses) Interest revenue6,638326,13469,006230,27497,458729,5102,137,089 Interest expense00(364,019)00(364,019)(4,558,072) Gain (loss) on sale of capital asset(26,874)(2,977)000(29,851)(65,079) Amortization of issuance costs00(3,150)00(3,150)(40,539) Total nonoperating revenues (expenses)(20,236)323,157(298,163)230,27497,458332,490(2,526,601) Income (loss) before capital contributions and transfers(504,496)(2,900,494)(153,841)670,384(2,559,744)(5,448,191)(8,421,914) Capital contributions02,833,71601,014,4851,244,8665,093,067337,886 Transfers in0017,5000017,5001,144,636 Transfers out(342,115)(237,669)(560,900)(13,000)0(1,153,684)(2,054,841) Change in net assets(846,611)(304,447)(697,241)1,671,869(1,314,878)(1,491,308)(8,994,233) Total net assets, July 1, 20081,661,46483,801,66717,472,09652,192,631101,818,31276,842,829 Total net assets, June 30, 2009814,85383,497,22016,774,85553,864,500100,503,43467,848,596 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.(895,227) Change in net assets of business-type activities(2,386,535) The accompanying notes are an integral part of the financial statements. 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) Self-insurance 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 (O) Indirect Expenses Allocation 43 (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 44 (B) Explanation of Differences Between the Government-wide Statement of Activities and the Fund Statement of Revenues, Expenditures and Changes in Fund Balances 45 - 46 (3) Stewardship, Compliance, and Accountability (A) Budgetary Information 46 - 47 (B) Deficit Fund Balances and Overexpenditures of Appropriations 47 (4) Detailed Notes on All Funds (A) Equity in Pooled Cash and Investments 47 - 49 (B) Receivables 50 (C) Interfund Receivables, Payables, and Transfers 51 - 52 (D) Due From Other Governments 53 (E) Capital Assets 54 - 56 (F) Deferred Revenue 57 (G) Operating Leases 57 - 58 (H) Bond Anticipation Notes 58 (I) Current Liabilities 58 (J) Noncurrent Liabilities 59 - 65 (5) Other Information (A) Risk Management 66 (B) Joint Ventures 67 (C) Retirement Plan 67 - 70 (D) Other Post-employment Benefits (OPEB) 70 - 73 (E) Contingencies 73 (F) Outstanding Encumbrances 73 CITY OF EUGENE, OREGON Notes to Basic Financial Statements June 30, 2009 (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 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 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. When both restricted and unrestricted resources are available for use, it is the City’s practice to use restricted resources first, then unrestricted resources as they are needed. continued 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 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 financing and 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 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 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 Permits Library Local Option Levy Library, Parks, and Recreation Public Safety Answering Point Road continued 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 Transportation Utility Urban Renewal Agency General Urban Agency Riverfront Debt Service Funds: General Obligation Library Special Assessment Bond Urban Renewal Agency Capital Projects Funds: Road Special Assessment Transportation Urban Renewal Agency Urban Renewal Agency Riverfront (E) Self-insurance 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, bankers’ acceptances, municipal bonds, corporate bonds, commercial paper, repurchase agreements, reverse repurchase agreements, and the Oregon Local Government Investment Pool. continued 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 service accounts receivable 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 a reservation of fund balance to indicate funds are not available for appropriation and are not expendable available 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.” See Interfund Receivables, Payables, and Transfers (Note 4C) for details of outstanding interfund assets and liabilities at year-end. (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 CITY OF EUGENE, OREGON Notes to Basic Financial Statements (1) Summary of Significant Accounting Policies, continued (J) Capital Assets Capital assets include land, right-of-way (included with land), buildings, improvements, equipment, infrastructure, and other tangible assets costing over $5,000 used in operations that have initial useful lives extending beyond a year. 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 (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 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, 2009, 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, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for specific purposes. (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. CITY OF EUGENE, OREGON Notes to Basic Financial Statements (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 $23,255,384 difference are as follows: Receivables: Interest $ 1,034,492 Taxes 5,103,721 Systems development charges 605,127 Municipal court 566,618 Assessments 993,495 Loans and notes 15,761,528 Subtotal 24,064,981 Allowance for uncollectibles (809,597) Net adjustment $ 23,255,384 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 $370,928,397 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 $ 82,195,943 Other capital assets (net of accumulated depreciation) 311,932,804 Capital assets (net of accumulated depreciation) reported in internal service funds included in the Statement of Net Assets - governmental activities column (23,200,350) Net adjustment $ 370,928,397 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 $54,004,692 difference are as follows: Bonds payable (less deferred charge for issuance costs) $ (43,234,267) Notes and contracts payable (2,880,318) Accrued interest payable (170,912) Compensated absences (7,254,543) (416,064) Net OPEB obligation Rebatable arbitrage (48,588) Net adjustment $ (54,004,692) continued 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 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 $3,693,932 difference are as follows: Change in deferred revenue from the following sources: Property taxes receivable $ 637,866 Special assessments receivable (84,227) System development charges receivable (171,755) Municipal court receivables (191,704) Notes receivable 3,581,740 Subtotal 3,771,920 Change in the allowance for uncollectibles (77,988) Net adjustment $ 3,693,932 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 $2,615,953 difference are as follows: Donations of capital assets $ 2,423,205 Sale of capital assets 192,748 Net adjustment $ 2,615,953 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 $1,737,406 difference are as follows: Compensated absences $ 14,083 Net OPEB obligation 1,780,111 Arbitrage22,728 Accrued interest 44,925 Amortization of issuance costs (124,441) Net adjustment $ 1,737,406 continued 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 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 $6,060,540 difference are as follows: Capital outlay $ 21,844,423 Depreciation expense (15,783,883) Net adjustment $ 6,060,540 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 $603,634 difference are as follows: Debt issued: Issuance of general obligation bonds $ (9,945,000) Issuance of notes payable (2,706,000) Principal payments: General obligation debt 10,383,800 Certificates of participation 2,410,000 Limited tax bonds 121,314 Notes and contracts payable 339,520 Net adjustment $ 603,634 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 $ (1,440,883) (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. continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (3) Stewardship, Compliance, and Accountability, continued (A) Budgetary Information, continued 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 $18,032,188. (B) Deficit Fund Balances and Overexpenditures of Appropriations On November 4, 2008, Eugene voters passed Measure 20-145, authorizing the City to issue $35.9 million in general obligation bonds for street preservation. Prior to the issuance of the bonds, the City borrowed $485,000 from a short term revolving credit facility for transportation capital projects. As a result, the General Obligation Debt Service Fund experienced a deficit balance of $458,350. The deficit will be eliminated in FY10 when the revolving credit facility is repaid from general property tax revenues. For the year ended June 30, 2009, the General Obligation Debt Service Fund had budget-basis expenditures in excess of legal appropriations of $169,897. (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, 2009: Cash on hand $ 56,634 Deposits with banks 19,158,818 Investments 153,732,524 $ 172,947,976 continued 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 At June 30, 2009, the City’s deposits with various financial institutions had a bank value of $20,991,499. All 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. Barring any exceptions, a bank depository is required to pledge collateral valued at least 10% of their quarter-end public fund deposits if they are well capitalized, 25% of their quarter-end public fund deposits if they are adequately capitalized, or 110% of their quarter-end public fund deposits if they are undercapitalized or assigned to pledge 110% by the Office of the State Treasurer. 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, 2009, the City had deposits of $2,001,605 insured by federal depository insurance and $18,989,894 collateralized under the PFCP. Investments As of June 30, 2009, the City held the following investments and maturities: Weighted average%of Carryingmaturityinvestment Investment typevalue in years portfolio Corporate securities $ 7,210,902 0.459 4.7% Local government investment pool 29,508,897 0.003 19.2% Municipal bonds 12,711,182 1.304 8.3% U.S. agency securities 102,211,952 0.984 66.5% U.S. treasury securities 2,089,591 0.636 1.3% Total$ 153,732,524 0.793 100.0% The "weighted average maturity in years" calculation assumes that all investments are held until maturity. 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: Maximum Maximum % of length portfolio to maturity Investment type Bankers' acceptances 25% 6 months Corporate securities 35% 18 months Local government investment pool 100% 1 day State and local government obligations 50% 3 years U.S. agency securities 100% 3 years U.S. treasury securities 100% 3 years continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (A) Equity in Pooled Cash and Investments, continued Investments, continued 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 $42,523,082, 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. At June 30, 2009, the City’s investments were rated as follows: Highest Rating From Moody's Investors Service or Standard & Poor's Corporation Investment type Total Aaa/AAA Aa/AA A/A Not rated Corporate securities $ 7,210,902 2,054,523 5,156,379 0 0 Local government investment pool 29,508,897 0 0 0 29,508,897 Municipal bonds 12,711,182 4,556,780 6,175,236 1,979,166 0 U.S. agency securities 102,211,952 102,211,952 0 0 0 U.S. treasury securities 2,089,591 2,089,591 0 0 0 Total $ 153,732,524 110,912,846 11,331,615 1,979,166 29,508,897 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, 2009, 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, 2009 included: U.S. Agency securities (43.6%), Corporate Bonds (26.7%), Commercial Paper (16.8%), Government Guaranteed Corporate Securities (11.0%), Certificates of Deposits (1.0%), and Bank Notes (0.9%). The credit risk associated with the investments was: AAA rating (55.4%), AA rating (26.1%), A rating (16.5%), BBB rating (0.7%), ratings withdrawn (0.3%), and not rated (1.0%). 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. continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (C) Interfund Receivables, Payables, and Transfers The composition of interfund receivables and payables at June 30, 2009 is as follows: Receivable fundPayablefundAmount Interfund loans receivable/payable (current portion of advances) Internal service funds Internal service funds $ 153,036 Total interfund loans receivable/payable $ 153,036 Due to/from other funds General Other governmental fund $ 9,192 Total due to/from other funds $ 9,192 The Facilities Services Fund borrowed $1,338,384 from the Fleet Services Fund to pay for various energy retrofit projects. The outstanding balance on June 30, 2009 is $153,036, all of which is current. The General Obligation Debt Service Fund had a cash deficit of $9,192 as of June 30, 2009. The deficit is due to an overexpenditure of debt payments. The deficit will be corrected early in the next fiscal year, and the situation that caused the overexpenditure will be corrected in the FY10 budget. The General Fund transferred funds to cover the temporary deficit. continued 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 $ 142,900 Fire and emergency medical services 987,615 Library, recreation, and cultural services 2,122,035 Planning and development 417,788 Police 746,734 Public works 11,366,810 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 3,156,922 $ 18,940,804 Business-type activities: Ambulance transport $ 59,593 Municipal airport 3,901,999 Parking services 781,466 Stormwater utility 1,262,894 Wastewater utility 3,818,085 $ 9,824,037 continued 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: UnavailableUnearnedTotal Fund by type Property taxes receivable: General$ 5,268,632 0 5,268,632 Other governmental funds 869,5840 869,584 Assessments receivable: Other governmental funds 991,6870 991,687 Systems development charges receivable: Systems Development Capital Projects 605,1280 605,128 Notes receivable: Community Development Special Revenue 14,266,348 0 14,266,348 General Capital Projects 41,1690 41,169 Systems Development Capital Projects 12,8400 12,840 Other governmental funds 1,441,1710 1,441,171 Other: General 566,6181,332,263 1,898,881 Community Development Special Revenue 010,000 10,000 Ambulance Transport 0631,898 631,898 Municipal Airport 0129,999 129,999 Parking Services 030,669 30,669 Stormwater Utility 050,495 50,495 Internal service funds 0133,000 133,000 Other governmental funds 201,805662,532 864,337 Total deferred revenue $ 24,264,982 2,980,856 27,245,838 (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, 2009, for operating leases was $656,773. 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 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, 2009: Fiscal year ending June 30 Rentals 2010 $ 661,760 2011 607,131 2012 507,139 2013 377,904 2014 353,616 2015 152,520 Total minimum future rentals $ 2,660,070 (H) Bond Anticipation Note The City entered into an arrangement with KeyBank National Association in the form of a Revolving Credit Facility dated November 9, 2004 having an authorized limit of $2,500,000 maturing on November 29, 2009. As of June 30, 2009, the City had a $0 balance on this credit facility. Draws on this credit facility are recorded as a liability of the Special Assessment Capital Projects Fund. The line of credit is available to finance construction of local improvement projects which primarily benefit the property owners against whose properties special assessments are levied. (I) Current Liabilities General Obligation Bond and Revolving Credit Facility 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. On January 27, 2009, the City entered into a General Obligation Bond and Revolving Credit Facility (Street and Off-Street Bike and Pedestrian Paths) with Bank of America, currently bearing interest at 2.35% and having an authorized limit of $5,000,000 maturing on June 1, 2010. As of June 30, 2009, the City had a $485,000 balance on the credit facility. Draws on this credit facility are recorded as a financing source in the Transportation Capital Projects Fund. The debt will be repaid from general property tax revenues or by the future issuance of long-term general obligation bonds, which can be issued at the City’s discretion. The General Obligation Bond and Revolving Credit Facility (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. bonded debt margin limit. Beginning Ending balance Increase Decrease balance Governmental activities G.O. bond and revolving credit facility (Street) $0 485,000 0 485,000 continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (J) Noncurrent Liabilities General Obligation Bond and Revolving Credit Facility 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 13, 2007, the City entered into a General Obligation Bond and Revolving Credit Facility with Bank of America, currently bearing interest at 0.75% with a maturity date of June 1, 2012. The facility has an authorized limit of $6,875,000 and is further limited to $27,490,000 less the amount of any general obligation bonds issued for the purpose of repaying the credit facility. As of June 30, 2009, the City had a $1,696,200 balance on the credit facility with $5,600,000 in long-term bonds issued to refund a portion of this debt. 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 balance Increase Decrease balance Governmental activities G.O. bond and revolving credit facility (POS) $ 4,980,000 4,345,000 (7,628,800) 1,696,200 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 margin of 3% of real market value per Oregon Revised Statutes 287.004. For the year ended June 30, 2009, the City had 94% of capacity available. G.O. bonds currently outstanding are as follows: OriginalEnding Governmental activitiesIssuance Interest rates (%) balance General obligation bonds serviced by general property taxes: Fire Projects Bonds, Series 2002 $ 8,680,000 3.000% to 4.650% 6,170,000 Parks and Open Spaces Bonds, Series 2004 6,305,000 2.500% to 4.650% 4,630,000 General Obligation Refunding Bonds, Series 2006 24,990,000 3.500% to 4.125% 21,595,000 Parks and Open Spaces Bonds, Series 2008 5,600,000 5.100% 5,600,000 Total general obligation bonds $ 45,575,000 37,995,000 On October 29, 2008, the City issued $5.6 million of Parks and Open Spaces General Obligation Bonds, Series 2008, for the purpose of refunding $5,593,800 of the then-outstanding General Obligation Bond and Revolving Credit Facility. The 2008 bonds bear an interest rate of 5.1% with the final payment due December 1, 2018. The refunded credit facility’s interest rate was equal to the Prime Rate minus 2.50%, with the final payment due June 1, 2012. continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4)Detailed Notes on All Funds, continued (J) Noncurrent Liabilities, continued General Obligation Bonds, continued In prior years, the City defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City’s financial statements. At June 30, 2009, $21.4 million of bonds outstanding are considered defeased. Annual debt service requirements to maturity for general obligation bonds are as follows: Governmentalactivities Fiscal year ending June 30PrincipalInterest 2010$3,290,0001,591,234 20113,435,0001,458,808 20123,560,0001,315,527 20133,705,0001,169,051 20143,855,0001,015,856 2015-201917,065,0002,680,401 2020-20233,085,000315,824 $37,995,0009,546,701 Certificates of Participation The City issues certificates of participation (COPs) to finance major construction projects in governmental activities. The Library Obligations are backed by the full faith and credit of the City, although the debt payments are serviced from Urban Renewal Agency tax increment revenues under an intergovernmental agreement. Pursuant to the intergovernmental agreement between the City and the Urban Renewal Agency, the tax increment revenues provided by the Urban Renewal Agency are recorded as a transfer into the Library Debt Service Fund. The Atrium Obligations are also backed by the full faith and credit of the City, although the debt payments are to be paid from rental payments made by property occupants, including City departments. The Santa Clara Fire Obligations are also backed by the full faith and credit of the City and the debt payments are made by the General Fund. OriginalEnding Governmental activitiesissuanceInterest rates (%)balance Certificates of participation serviced by tax increment revenues: Library Obligations, Series 2000 $18,500,0004.500% to 5.000% 2,350,000 Certificates of participation serviced by general property taxes: Santa Clara Fire Station, Series 20032,090,0002.000%to 4.000% 1,065,000 Certificates of participation serviced by specific fund revenues: Atrium Obligations, Series 1998A (tax-exempt)1,200,0003.700% to 4.900% 690,000 Atrium Obligations, Series 1998B (taxable)1,200,0006.125% to 6.200% 735,000 Total certificates of participation$22,990,0004,840,000 continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (J) Noncurrent Liabilities, continued Certificates of Participation, continued Annual debt service requirements to maturity for certificates of participation are as follows: Governmentalactivities Fiscal year ending June 30 Principal Interest 2010 $ 2,680,000 175,247 2011 340,000 103,463 2012 355,000 89,230 2013 360,000 73,823 2014 370,000 57,855 2015-2018 735,000 105,365 $ 4,840,000604,983 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. Limited tax bonds in business-type activities financed the Broadway Garages construction project and are serviced from available parking revenues. 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. OriginalEnding Governmental activitiesissuance Interest rates (%) balance Limited tax bonds: Limited Tax Pension Bonds, Series 2002 $ 84,335,000 2.000% to 7.410% 64,444,534 Limited Tax Improvement Bonds, Series 2006 1,036,427 5.100% 587,109 Subtotal 85,371,427 65,031,643 Business-type activities Limited tax bonds: Broadway Garages Limited Tax Bonds, Series 1997 7,000,000 6.125% to 7.000% 5,180,000 Total limited tax bonds $ 92,371,427 70,211,643 continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (J) Noncurrent Liabilities, continued Limited Tax Bonds, continued 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 governmental activities limited tax bonds $ 65,031,643 Less: Accretion of deep discount(6,383,980) Total governmental activities debt service requirements for limited tax bonds $ 58,647,663 Annual debt service requirements to maturity for limited tax improvement bonds are as follows: Governmental activities Business-type activities Fiscal year ending June 30 Principal Interest Principal Interest 2010 $ 0 29,943 370,000 347,663 2011 0 29,943 420,000 320,506 2012 0 29,943 470,000 289,913 0 29,943 515,000 256,053 2013 20140 29,943 565,000 218,575 2015-2018 587,109 59,886 2,840,000 419,650 $ 587,109 209,601 5,180,000 1,852,360 Annual debt service requirements to maturity for limited tax pension bonds are as follows: Governmental activities Business-type activities Fiscal year ending June 30 Principal Interest Principal Interest 2010 $ 706,986 3,812,387 0 0 2011 781,747 3,972,625 0 0 2012 844,099 4,150,273 0 0 2013 899,457 4,344,915 0 0 2014 949,798 4,559,574 0 0 2015-2019 5,127,043 26,764,820 0 0 2020-2023 25,566,424 14,791,8040 0 2024-2028 23,185,000 4,513,807 0 0 58,060,554 66,910,205 0 0 Total limited tax bonds $ 58,647,663 67,119,806 5,180,000 1,852,360 continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (J) Noncurrent Liabilities, continued Notes Payable The City issues notes to finance major construction projects in governmental and business-type activities. The Oregon Department of Environmental Quality (ODEQ) note pays interest at 4.07% and is secured by a pledge of available net sewer revenues. 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 unsecured 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. Loan Interest Ending Governmental activitiesamount rates (%) balance Notes payable: Oregon Department of Environmental Quality - Barger-Greenhill Pump Station and Force Main $ 2,962,344 4.070% 174,318 Department of Housing and Urban Development - Washburne and Centre Court Buildings 2,706,000 varies 2,706,000 $5,668,3442,880,318 Annual debt service requirements to maturity for notes payable are as follows: Governmentalactivites Fiscal year ending June 30 Principal Interest 2010 $ 174,318 23,596 2011 128,000 17,777 2012 128,000 16,906 2013 128,000 16,034 2014 128,000 15,162 2015-2019 640,000 62,733 2020-2024 640,000 40,937 2025-2028 914,000 15,005 $ 2,880,318 208,150 The ODEQ note will be repaid from system development receipts collected in the Systems Development Capital Projects Fund. The note includes a coverage requirement to maintain sewer rates sufficient to generate net revenues that maintain a debt service coverage factor of 1.05. At June 30, 2009, the coverage factor for the ODEQ note was 3.70. The HUD note will be repaid from principal and interest payments received from a loan to BEAM Development, who purchased the property from the City. The loan proceeds from the BEAM Development loan will be received in the Community Development Special Revenue Fund. continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (J) Noncurrent Liabilities, continued Rebatable Arbitrage The City rebates interest earned on arbitrage as required by the federal tax code. Arbitrage reviews are performed periodically on all City tax-exempt bonds and obligations, and material liabilities are recorded in proprietary funds when incurred. The City had an estimated rebatable arbitrage of $48,588 at June 30, 2009. Reserves, accumulated from excess interest revenues in the General Capital Projects Fund and the Library Debt Service Fund, will be used to liquidate the liabilities when due. Compensated Absences At June 30, 2009, the City reported compensated absences of $8,188,057 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, 2009, internal service fund debt included the Atrium Obligations of $1,425,000, Limited Tax Pension Bonds of $64,444,534, deferred bond discounts net of premiums of $138,704, and $933,515 in compensated absences. continued 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 $500,000 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 $500,000 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. 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 $150,000 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 $250,000 deductible per occurrence. During the previous three fiscal years, there were no general liability claims 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, 2009. 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, 2009, a total claims liability of $10,133,777 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 of yearestimatespayments June 30end of year $ 20089,878,13416,018,314(16,445,934)9,450,514 20099,450,51418,583,915(17,900,652)10,133,777 continued 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 42% 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, 2008, where its Information Services Fund reflected operating income of $2,380,227, an increase in net assets of $2,488,116 and total net assets of $8,951,395. For the fiscal year ended June 30, 2009, the City paid $2,234,638 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, 2009, the City provided billable operations to MWMC costing $13,449,701 and MWMC owed the City $920,157 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, 2008, which reflected net income of $3,489,705 and total fund equity of $105,209,392. 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 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, 2009, the 6.0% IAP contribution was $5,342,477 (6.00% of covered payroll). In addition to the IAP contribution, the City contributed 13.49% 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 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 All participating employers are required by law to submit the contributions as adopted by OPERB. For the fiscal year ended June 30, 2009, the City’s annual pension expenditures/expense exclusive of the 6.0% IAP contribution was $13,381,346. This amount consisted of the annual required contribution to the defined benefit pension plans of $12,013,659 and $1,367,687 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, 2009, were as follows: continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (5) Other Information, continued (C) Retirement Plan, continued Annual Pension Cost, continued Annual required contribution $12,013,659 Interest on pension assets (5,007,044) Adjustment to the annual required contribution 6,374,731 Annual pension cost 13,381,346 Contributions made 12,013,659 Decrease in pension assets (1,367,687) Pension assets, beginning of year 62,588,051 Pension assets, end of year $61,220,364 For the fiscal year ending June 30, 2009, the City’s annual required contribution rate for PERS and OSRP was determined 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 8.0% in 2008 decreasing to 5.0% in 2013. 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 percent of the prior contribution rate. If the plan’s funded percentage drops below 80 percent or increases above 120 percent, the size of the collar doubles. 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. 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, 2009 and the preceding two years were as follows: AnnualPercentage Fiscal year pension of APC Pension ending June 30cost (APC) Contribution contributed assets 2007$14,557,97913,385,40892%63,854,428 200812,812,33911,545,96290%62,588,051 200913,381,34612,013,65990%61,220,364 continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (5) Other Information, continued (C) Retirement Plan, continued Annual Pension Cost, continued Based on the PERS December 31, 2007 actuarial valuation, the City has an expected UAAL of ($68,292,111). The December 31, 2007 valuation does not take into account investment performance since that date. 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. (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 $60 per month towards the costs of health insurance for eligible PERS retirees. RHIA post-employment benefits are set by state statue. A comprehensive annual financial report of the funds administered by the OPERB may be obtained by writing to Oregon Public Employees Retirement System, P.O. Box 23700, Tigard, OR 97281-3700, by calling (503) 598- 7377, or by accessing the PERS web site at http://oregon.gov/PERS/. Funding Policy Participating employers are contractually required to contribute at a rate assessed bi-annually by the OPERB, currently 0.35% of annual covered payroll. The OPERB sets the employer contribution rate based on the annual required contribution of the employers (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) of the plan over a period not to exceed thirty years. The City’s contributions to PERS’ RHIA for the past two years were as follows, all of which equaled the required contributions for that year: Fiscal year Contributions ending June 30 2008$ 298,568 2009309,134 City Healthcare Plan Plan Description The City administers a single-employer defined benefit healthcare plan per the requirements of collective bargaining agreements. The healthcare plan 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 18. continued CITY OF EUGENE, OREGON Notes to Basic Financial Statements (5) Other Information, continued (D) Other Post-employment Benefits (OPEB), continued Plan Description, continued The City’s post-retirement healthcare plan was established in accordance with Oregon Revised Statutes (ORS) 243.303. ORS stipulate that for the purpose of establishing healthcare premiums, the rate must be based on all plan members, including both active employees and retirees. Due to the effect of age, retiree claim costs are generally higher than claim costs for all members as a whole. The difference between retiree claims costs and the amount of retiree healthcare premiums represents the City’s implicit employer contribution. The City also provides post-employment life insurance benefits to fully disabled employees through a single employer defined benefit plan. The plan provides a waiver of life insurance premiums for employees who participate in the City’s life insurance plan who become totally disabled; the plan is underwritten by Standard Insurance Company, whereby the City pays a premium rate for active and disabled employees, and Standard Insurance Company provides term life insurance coverage. In the event the City changes life insurance carriers, Standard Insurance Company does not retain any liability for future death benefits. In changing life insurance carriers, if the new carrier was unwilling to accept the liability for the disabled employees, the City would be responsible for any future death benefits. The City’s post-employment life insurance benefit for disabled employees is an elective benefit offered by the City, this benefit is subject to collective bargaining agreements. The amount of life insurance benefits that a disabled employee receives is based on the amount of coverage and the reduction pattern in effect at the time of disablement. The coverage amount varies per employer group; the maximum benefit is $250,000. The City did not establish an irrevocable trust (or equivalent arrangement) to account for either plan. Instead, the activities of the plans are reported in the City’s Risk and Benefits Internal Service Fund. Neither plan issues a separate report. Funding Policy The City has the authority to establish and amend contribution requirements. The required contribution is based on projected pay-as-you-go financing requirements. Since the City’s healthcare plan is self-insured, the annual required contributions can fluctuate. For the fiscal year ending June 30, 2009, the City’s combined plan contributions were $1,343,785. 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, 2009, the amount actually contributed to the plans, and changes in the City’s net OPEB obligation: Annual required contribution $1,489,045 Interest on net OPEB obligation 212,018 Adjustment to the annual required contribution (271,744) Annual OPEB cost (expense) 1,429,319 Contributions made 1,343,785 Increase in net OPEB obligation 85,534 Net OPEB obligation, beginning of year 4,093,013 Net OPEB obligation, end of year $4,178,547 continued 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 2009 and the preceding year were as follows: Percentage of Fiscal year Annual annual OPEB Net OPEB ending June 30 OPEB cost Contribution cost contributed obligation 2007 $ 2,797,017 914,520 33% 2,462,497 2008 2,557,573 927,057 36% 4,093,013 2009 1,429,319 1,343,785 94% 4,178,547 Funded Status and Funding Progress As of June 30, 2009, the most recent actuarial valuation date, the actuarial accrued liability (AAL) for benefits was $13,418,783, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability of $13,418,783. The covered payroll (annual payroll of active employees covered by the plans) was $90,674,405, and the ratio of the UAAL to the covered payroll was 15.0%. The City’s actuarial accrued liability for benefits decreased from $22,854,225 to $13,418,783 as a result of the latest actuarial valuation. The $9,435,442 decrease in the AAL was due to changes in the actuarial assumptions for service retirement and morbidity rates. For the fiscal year ending June 30, 2009, the City has set aside $3,587,875 to pay for future post-employment life insurance benefits for disabled employees, 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 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, 2009 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 5.18%. The healthcare plan actuarial valuation included a healthcare cost inflation trend rate of 9.0% in 2009 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, 2009, the City has encumbered the following significant commitments: Amount Fund General $ 943,294 Community Development Special Revenue 771,391 General Capital Projects 1,468,547 Road Capital Projects 658,054 Systems Development Capital Projects 1,420,333 Municipal Airport 2,242,688 Parking Services 56,372 Stormwater Utility 557,614 Wastewater Utility 938,237 Internal service funds 605,871 Other governmental funds 4,327,073 Total outstanding encumbrances $ 13,989,474 (this page intentionally left blank) ÎÛÏË×ÎÛÜ ÍËÐÐÔÛÓÛÒÌßÎÇ ×ÒÚÑÎÓßÌ×ÑÒ City of Eugene, OregonA-1 General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) BudgetActual BudgetGAAP OriginalFinalbasisAdjustmentbasis Revenues Taxes88,867,68888,867,68889,336,225089,336,225 Licenses and permits6,309,4506,309,4506,351,15606,351,156 Intergovernmental4,453,9155,636,0144,909,938(59,706)4,850,232 Rental income93,02793,027101,5670101,567 Charges for services11,871,46612,687,53211,862,822(742,003)11,120,819 Fines and forfeits3,422,8403,422,8403,063,76303,063,763 Miscellaneous1,453,5061,453,5061,154,93983,9841,238,923 Total revenues116,471,892118,470,057116,780,410(717,725)116,062,685 Expenditures Current - departmental: Central services23,481,40924,253,68522,455,707(7,205,404)15,250,303 Fire and emergency medical services23,000,29023,403,52522,450,839(15,813)22,435,026 Library, recreation, and cultural services23,212,22423,443,60621,806,202(72,521)21,733,681 Planning and development7,816,9028,616,9357,695,760(324,589)7,371,171 Police40,331,25643,446,28039,824,609(52,446)39,772,163 Public works7,210,0567,265,2396,708,199(4,162)6,704,037 Debt service259,000259,000254,1450254,145 Intergovernmental729,520729,520343,413(343,413)0 Total expenditures126,040,657131,417,790121,538,874(8,018,348)113,520,526 Excess (deficiency) of revenues over expenditures(9,568,765)(12,947,733)(4,758,464)7,300,6232,542,159 Other financing sources (uses) Transfers in10,378,01510,378,01510,378,015(7,252,000)3,126,015 Transfers out(3,761,300)(4,167,245)(3,599,212)0(3,599,212) Total other financing sources (uses)6,616,7156,210,7706,778,803(7,252,000)(473,197) Net change in fund balance(2,952,050)(6,736,963)2,020,33948,6232,068,962 Fund balance, July 1, 200827,683,99429,939,11829,939,118507,50730,446,625 Fund balance, June 30, 200924,731,94423,202,15531,959,457556,13032,515,587 City of Eugene, OregonA-2 Community Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) BudgetActual BudgetGAAP OriginalFinalbasisAdjustmentbasis Revenues Intergovernmental4,630,0006,773,7442,947,50102,947,501 Charges for services6,0006,00019,248019,248 Repayment of revolving loans0001,696,5361,696,536 Miscellaneous1,112,7501,112,750520,8845,633526,517 Total revenues5,748,7507,892,4943,487,6331,702,1695,189,802 Expenditures Current - departmental: Central services4,0004,0002,00073,00075,000 Planning and development3,026,2803,604,2802,316,7692,236,4174,553,186 Loans granted2,268,5054,566,1342,041,417(2,041,417)0 Debt service600,000600,00056,558056,558 Capital outlay334,874290,744208,1780208,178 Intergovernmental6,700,00010,090,9303,390,930(3,390,930)0 Total expenditures12,933,65919,156,0888,015,852(3,122,930)4,892,922 Excess (deficiency) of revenues over expenditures(7,184,909)(11,263,594)(4,528,219)4,825,099296,880 Other financing sources (uses) Principal payments received1,435,0001,945,0001,696,536(1,696,536)0 Proceeds of note issuance5,347,0008,052,9302,705,93002,705,930 Transfers out(73,000)(73,000)(73,000)(3,122,930)(3,195,930) Total other financing sources (uses)6,709,0009,924,9304,329,466(4,819,466)(490,000) Net change in fund balance(475,909)(1,338,664)(198,753)5,633(193,120) Fund balance, July 1, 20081,075,9092,032,0012,032,0012,0702,034,071 Fund balance, June 30, 2009600,000693,3371,833,2487,7031,840,951 CITY OF EUGENE, OREGON Notes to Required Supplementary Information June 30, 2009 (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 assets liability liability ratio payroll of covered payroll date 12/31/03 $ 470,039,745 506,073,412 36,033,667 93% 70,016,201 51% 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% (2) Schedule of Funding Progress – OPEB Other Post Employment Benefits schedule of funding progress: Unfunded Unfunded actuarial Actuarial Actuarial Actuarial actuarial accrued liability valuation value of accrued accrued Funded Covered as a percentage date assets liability liability ratio payroll of covered payroll 06/30/07 $ 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% 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. 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 General Development Net change in fund balance - budget basis $ 2,020,339 (198,753) 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. (8,053,708) 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. 83,984 5,633 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. 8,053,708 0 Prepaid expenses are recorded in the year paid on a budget basis. However, such expenses are matched to the accounting period benefited under GAAP. (35,361) 0 Net change in fund balance - GAAP basis $ 2,068,962 (193,120) Principle payments received of $1,696,536 and loans granted of $2,041,417 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. ÑÌØÛÎ ÍËÐÐÔÛÓÛÒÌßÎÇ ×ÒÚÑÎÓßÌ×ÑÒ îíîïûòíêõíæ÷êîï÷îèûðöçîøé ùíïúóîóîõéèûè÷ï÷îèé City of Eugene, OregonB-1 Combining Balance Sheet Nonmajor Governmental Funds June 30, 2009 (amounts in dollars) Total SpecialDebtCapitalOther RevenueServiceProjectsGovernmental FundsFundsFundsFunds Assets Equity in pooled cash and investments26,897,4266,246,6834,062,46137,206,570 Receivables: Interest48,019108,1110156,130 Taxes207,244511,9580719,202 Accounts747,58203,864751,446 Assessments143,831605,899259,1771,008,907 Loans and notes1,441,170033,4731,474,643 Allowance for uncollectibles(700)00(700) Due from other governments1,628,80353,081546,5802,228,464 Inventories861,68900861,689 Prepaids and deposits30,1850030,185 Assets held for resale538,9291,5411,867,4972,407,967 Total assets32,544,1787,527,2736,773,05246,844,503 Liabilities and fund balances Liabilities Accounts payable1,248,956054,2231,303,179 Wages payable640,80300640,803 Due to other funds09,19209,192 Due to other governments408,9630336409,299 Deposits1,3240907,976909,300 Deferred revenue2,663,5741,210,290292,9154,166,779 General obligation bond and revolving credit facility0485,0000485,000 Total liabilities4,963,6201,704,4821,255,4507,923,552 Fund balances Reserved for prepaid expenditures30,1850030,185 Reserved for debt service031,242031,242 Reserved for inventories861,68900861,689 Reserved for assets held for resale538,9291,5411,867,4972,407,967 Unreserved26,149,7555,790,0083,650,10535,589,868 Total fund balances27,580,5585,822,7915,517,60238,920,951 Total liabilities and fund balances32,544,1787,527,2736,773,05246,844,503 City of Eugene, OregonB-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the fiscal year ended June 30, 2009 (amounts in dollars) Total SpecialDebtCapitalOther RevenueServiceProjectsGovernmental FundsFundsFundsFunds Revenues Taxes6,264,0368,145,677014,409,713 Licenses and permits5,772,992005,772,992 Intergovernmental11,895,22601,815,94413,711,170 Rental income96,443049,592146,035 Charges for services3,618,698065,1933,683,891 Fines and forfeits46,8140046,814 Special assessments14,310105,52689,352209,188 Repayment of revolving loans29,4420029,442 Miscellaneous2,182,300302,29195,7112,580,302 Total revenues29,920,2618,553,4942,115,79240,589,547 Expenditures Current - departmental: Central services3,303,690003,303,690 Fire and emergency medical services232,93500232,935 Library, recreation, and cultural services2,695,012002,695,012 Planning and development6,272,029006,272,029 Police2,105,552002,105,552 Public works9,462,056009,462,056 Debt service: Principal07,111,31407,111,314 Interest01,860,37501,860,375 Issuance costs06,20016,68322,883 Capital outlay3,329,25405,675,4769,004,730 Total expenditures27,400,5288,977,8895,692,15942,070,576 Excess (deficiency) of revenues over expenditures2,519,733(424,395)(3,576,367)(1,481,029) Other financing sources (uses) Proceeds of refunding bonds issuance05,600,00005,600,000 Refunded bonds redeemed0(5,593,800)0(5,593,800) Transfers in1,786,9702,372,4784,881,6989,041,146 Transfers out(2,132,633)(3,155,216)(700,000)(5,987,849) Total other financing sources (uses)(345,663)(776,538)4,181,6983,059,497 Net change in fund balances2,174,070(1,200,933)605,3311,578,468 Fund balances, July 1, 200825,406,4887,023,7244,912,27137,342,483 Fund balances, June 30, 200927,580,5585,822,7915,517,60238,920,951 ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ Ý±³¾·²·²¹ ¬¿¬»³»²¬ º±® ¿´´ ·²¼·ª·¼«¿´ ²±²³¿¶±® °»½·¿´ ®»ª»²«» º«²¼ ¿®» ®»°±®¬»¼ ¸»®»ò Ì¸» ½±³¾·²»¼ ¬±¬¿´ ¿®» ®»°±®¬»¼ ·² ¬¸» ½±³¾·²·²¹ ²±²³¿¶±® ¹±ª»®²³»²¬¿´ º«²¼ ¬¿¬»³»²¬ ¿¬ Þóï ¿²¼ Þóîò Ú«²¼ ¬¿¬»³»²¬ º±® ³¿¶±® °»½·¿´ Í½¸»¼«´» ±º ®»ª»²«»ô »¨°»²¼·¬«®»ô ¿²¼ ½¸¿²¹» ·² º«²¼ ¾¿´¿²½» ó ¾«¼¹»¬ ¿²¼ ¿½¬«¿´ ¿®» ¿´± °®»»²¬»¼ ¸»®» º±® »¿½¸ ·²¼·ª·¼«¿´ ²±²³¿¶±® °»½·¿´ ®»ª»²«» º«²¼ò Þ«¼¹»¬ ¿²¼ ¿½¬«¿´ ½±³°¿®·±² º±® ³¿¶±® °»½·¿´ ®»ª»²«» º«²¼ ¿®» ®»°±®¬»¼ ¿ ®»¯«·®»¼ «°°´»³»²¬¿®§ ·²º±®³¿¬·±² ¿¬ ßóîò Ó¿¶±® Í°»½·¿´ Î»ª»²«» Ú«²¼æ Ý±³³«²·¬§ Ü»ª»´±°³»²¬ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ¹®¿²¬ ®»ª»²«» ®»½»·ª»¼ º®±³ ¬¸» Ú»¼»®¿´ ¹±ª»®²³»²¬ò Ó¿¶±® Ò±²³¿¶±® Í°»½·¿´ Î»ª»²«» Ú«²¼æ Ý±²¬®«½¬·±² Ð»®³·¬ Ú«²¼ Ô·¾®¿®§ Ô±½¿´ Ñ°¬·±² Ô»ª§ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ®»ª»²«» ®»½»·ª»¼ º®±³ ¿ º±«®ó§»¿® ´·¾®¿®§ ´±½¿´ ±°¬·±² ´»ª§ ¬± Ô·¾®¿®§ô Ð¿®µô ¿²¼ Î»½®»¿¬·±² Ú«²¼ ó Ì± ¿½½±«²¬ º±® ½±²¬®·¾«¬·±² º®±³ °®·ª¿¬» ¼±²±® ¬± «°°±®¬ ¬¸» °«¾´·½ ó Ì± ¿½½±«²¬ º±® ±°»®¿¬·±² ±º ¬¸» »³»®¹»²½§ ¼·°¿¬½¸ ½»²¬»®ò Î»±«®½» ¿®» °®·³¿®·´§ º®±³ ¬»´»°¸±²» »¨½·» ¬¿¨» ¿²¼ ·²¬»®¹±ª»®²³»²¬¿´ ®»ª»²«»ò Î±¿¼ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ¬¸» ±°»®¿¬·±² ¿²¼ ³¿·²¬»²¿²½» ±º ¬¸» Ý·¬§ù ¬®»»¬ ¬®¿²°±®¬¿¬·±² §¬»³ò Î»±«®½» °»®³·¬ô ¿²¼ ±¬¸»® ³·½»´´¿²»±« ¹®¿²¬ò Í±´·¼ É¿¬» ¿²¼ Î»½§½´·²¹ Ú«²¼ Í°»½·¿´ ß»³»²¬ Ó¿²¿¹»³»²¬ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ±°»®¿¬·±² ±º ¬¸» °®±°»®¬§ ³¿²¿¹»³»²¬ ¿²¼ ¿»³»²¬ ¸¿®¼¸·° ¼»º»®®¿´ °®±¹®¿³ò Ì»´»½±³ Î»¹·¬®¿¬·±² ¿²¼ Ô·½»²·²¹ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ®»¹·¬®¿¬·±² º»» ¿²¼ ¾«·²» °®·ª·´»¹» ¬¿¨» ½±´´»½¬»¼ º®±³ °®±ª·¼»® ±º ¬»´»½±³³«²·½¿¬·±² »®ª·½» ·² Û«¹»²»ò Î»±«®½» ¿®» «»¼ º±® °®±¹®¿³ ¿¼³·²·¬®¿¬·±² ¿²¼ Ì®¿²°±®¬¿¬·±² Ë¬·´·¬§ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ¼»¼·½¿¬»¼ ®»ª»²«» ¿²¼ ®»´¿¬»¼ ½¿°·¬¿´ °®±¶»½¬ »¨°»²¼·¬«®» ·²½«®®»¼ ó Ì± ¿½½±«²¬ º±® ®»ª»²«» ®»½»·ª»¼ º®±³ ¿² ¿¼ ª¿´±®»³ ¬¿¨ ±² °®±°»®¬§ ´±½¿¬»¼ ·² ¬¸» Î·ª»®º®±²¬ Î»»¿®½¸ Ð¿®µò Î»±«®½» ¿®» «»¼ º±® ·³°®±ª·²¹ ¬¸» ½±²¼·¬·±² ¿²¼ ¿°°»¿®¿²½» ±º ¬¸» Î·ª»®º®±²¬ Î»»¿®½¸ Ð¿®µò City of Eugene, OregonC-3 Construction Permits Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licenses and permits4,326,0002,316,91102,316,911 Intergovernmental06,650(6,650)0 Charges for services3,050,0002,425,734(291,359)2,134,375 Fines and forfeits130,00046,814046,814 Miscellaneous178,000134,4438,172142,615 Total revenues7,684,0004,930,552(289,837)4,640,715 Expenditures Current - departmental: Central services00670,000670,000 Fire and emergency medical services439,054232,9350232,935 Planning and development6,027,8744,929,917(7,084)4,922,833 Public works517,230371,1350371,135 Intergovernmental500,000291,360(291,360)0 Total expenditures7,484,1585,825,347371,5566,196,903 Excess (deficiency) of revenues over expenditures199,842(894,795)(661,393)(1,556,188) Other financing sources (uses) Transfers out(670,000)(670,000)670,0000 Total other financing sources (uses)(670,000)(670,000)670,0000 Net change in fund balance(470,158)(1,564,795)8,607(1,556,188) Fund balance, July 1, 20084,492,1694,492,16917,6904,509,859 Fund balance, June 30, 20094,022,0112,927,37426,2972,953,671 City of Eugene, OregonC-4 Library Local Option Levy Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes2,616,9532,619,26402,619,264 Rental income18,00020,430020,430 Miscellaneous33,00017,5091,02418,533 Total revenues2,667,9532,657,2031,0242,658,227 Expenditures Current - departmental: Library, recreation, and cultural services2,722,1002,393,85829,2132,423,071 Total expenditures2,722,1002,393,85829,2132,423,071 Excess (deficiency) of revenues over expenditures(54,147)263,345(28,189)235,156 Total other financing sources (uses)0000 Net change in fund balance(54,147)263,345(28,189)235,156 Fund balance, July 1, 2008265,081265,08148,534313,615 Fund balance, June 30, 2009210,934528,42620,345548,771 City of Eugene, OregonC-5 Library, Parks, and Recreation Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Miscellaneous491,366419,8927,150427,042 Total revenues491,366419,8927,150427,042 Expenditures Current - departmental: Library, recreation, and cultural services361,988274,871(2,930)271,941 Capital outlay328,81620,734020,734 Total expenditures690,804295,605(2,930)292,675 Excess (deficiency) of revenues over expenditures(199,438)124,28710,080134,367 Total other financing sources (uses)0000 Net change in fund balance(199,438)124,28710,080134,367 Fund balance, July 1, 20082,388,1452,388,1454,5222,392,667 Fund balance, June 30, 20092,188,7072,512,43214,6022,527,034 City of Eugene, OregonC-6 Public Safety Answering Point Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental986,770815,1840815,184 Charges for services1,722,8691,408,22801,408,228 Miscellaneous2,80515,140(703)14,437 Total revenues2,712,4442,238,552(703)2,237,849 Expenditures Current - departmental: Central services00133,000133,000 Police2,579,4442,105,55202,105,552 Total expenditures2,579,4442,105,552133,0002,238,552 Excess (deficiency) of revenues over expenditures133,000133,000(133,703)(703) Other financing sources (uses) Transfers out(133,000)(133,000)133,0000 Total other financing sources (uses)(133,000)(133,000)133,0000 Net change in fund balance00(703)(703) Fund balance, July 1, 200800703703 Fund balance, June 30, 20090000 City of Eugene, OregonC-7 Road Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licenses and permits291,00084,986084,986 Intergovernmental6,480,0006,064,893(1,498)6,063,395 Rental income37,58252,823052,823 Charges for services75,00023,452023,452 Miscellaneous223,000714,5154,531719,046 Total revenues7,106,5826,940,6693,0336,943,702 Expenditures Current - departmental: Central services00653,000653,000 Public works9,941,6879,046,97143,9509,090,921 Total expenditures9,941,6879,046,971696,9509,743,921 Excess (deficiency) of revenues over expenditures(2,835,105)(2,106,302)(693,917)(2,800,219) Other financing sources (uses) Transfers in1,010,0001,010,00001,010,000 Transfers out(653,000)(653,000)653,0000 Total other financing sources (uses)357,000357,000653,0001,010,000 Net change in fund balance(2,478,105)(1,749,302)(40,917)(1,790,219) Fund balance, July 1, 20083,330,4833,330,483913,2404,243,723 Fund balance, June 30, 2009852,3781,581,181872,3232,453,504 City of Eugene, OregonC-8 Solid Waste and Recycling Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licenses and permits585,000581,7100581,710 Intergovernmental04,23404,234 Charges for services1,0007940794 Miscellaneous16,00023,1102,58125,691 Total revenues602,000609,8482,581612,429 Expenditures Current - departmental: Central services0018,00018,000 Planning and development561,179357,8180357,818 Total expenditures561,179357,81818,000375,818 Excess (deficiency) of revenues over expenditures40,821252,030(15,419)236,611 Other financing sources (uses) Transfers out(18,000)(18,000)18,0000 Total other financing sources (uses)(18,000)(18,000)18,0000 Net change in fund balance22,821234,0302,581236,611 Fund balance, July 1, 2008499,991499,9911,038501,029 Fund balance, June 30, 2009522,812734,0213,619737,640 City of Eugene, OregonC-9 Special Assessment Management Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Charges for services72,00040,615040,615 Special assessments0014,31014,310 Miscellaneous78,00065,8734,35070,223 Total revenues150,000106,48818,660125,148 Expenditures Current - departmental: Central services121,67174,1845,00079,184 Total expenditures121,67174,1845,00079,184 Excess (deficiency) of revenues over expenditures28,32932,30413,66045,964 Other financing sources (uses) Principal payments received13,00014,310(14,310)0 Loans - deferred assessments(40,000)000 Transfers in60,0006970697 Transfers out(45,000)(5,000)5,0000 Total other financing sources (uses)(12,000)10,007(9,310)697 Net change in fund balance16,32942,3114,35046,661 Fund balance, July 1, 20081,513,7271,513,7272,8171,516,544 Fund balance, June 30, 20091,530,0561,556,0387,1671,563,205 City of Eugene, OregonC-10 Telecom Registration and Licensing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licenses and permits2,700,0002,789,38502,789,385 Miscellaneous174,000147,68514,250161,935 Total revenues2,874,0002,937,07014,2502,951,320 Expenditures Current - departmental: Central services3,625,0631,584,50698,0001,682,506 Capital outlay609,306149,3550149,355 Total expenditures4,234,3691,733,86198,0001,831,861 Excess (deficiency) of revenues over expenditures(1,360,369)1,203,209(83,750)1,119,459 Other financing sources (uses) Transfers out(1,280,633)(1,280,633)98,000(1,182,633) Total other financing sources (uses)(1,280,633)(1,280,633)98,000(1,182,633) Net change in fund balance(2,641,002)(77,424)14,250(63,174) Fund balance, July 1, 20085,472,8355,472,8359,0105,481,845 Fund balance, June 30, 20092,831,8335,395,41123,2605,418,671 City of Eugene, OregonC-11 Transportation Utility Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes3,180,0002,976,10702,976,107 Intergovernmental5,638,7535,012,41305,012,413 Miscellaneous140,000205,28925,130230,419 Total revenues8,958,7538,193,80925,1308,218,939 Expenditures Capital outlay9,547,5703,159,16503,159,165 Total expenditures9,547,5703,159,16503,159,165 Excess (deficiency) of revenues over expenditures(588,817)5,034,64425,1305,059,774 Other financing sources (uses) Transfers out(950,000)(950,000)0(950,000) Total other financing sources (uses)(950,000)(950,000)0(950,000) Net change in fund balance(1,538,817)4,084,64425,1304,109,774 Fund balance, July 1, 20081,695,6651,695,6656,4701,702,135 Fund balance, June 30, 2009156,8485,780,30931,6005,811,909 City of Eugene, OregonC-12 Urban Renewal Agency General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental7,308,190479,232(479,232)0 Charges for services2,00011,234011,234 Repayment of revolving loans0029,44229,442 Miscellaneous579,000103,6776,392110,069 Total revenues7,889,190594,143(443,398)150,745 Expenditures Current - departmental: Central services0034,00034,000 Planning and development972,000302,494544,975847,469 Loans granted9,761,000578,975(578,975)0 Total expenditures10,733,000881,4690881,469 Excess (deficiency) of revenues over expenditures(2,843,810)(287,326)(443,398)(730,724) Other financing sources (uses) Principal payments received55,00029,442(29,442)0 Transfers in772,000297,041479,232776,273 Total other financing sources (uses)827,000326,483449,790776,273 Net change in fund balance(2,016,810)39,1576,39245,549 Fund balance, July 1, 20082,066,8102,066,810542,1302,608,940 Fund balance, June 30, 200950,0002,105,967548,5222,654,489 City of Eugene, OregonC-13 Urban Renewal Agency Riverfront Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes615,000668,6650668,665 Rental income25,00023,190023,190 Miscellaneous52,000254,1178,173262,290 Total revenues692,000945,9728,173954,145 Expenditures Current - departmental: Central services0034,00034,000 Planning and development342,000177,909(34,000)143,909 Total expenditures342,000177,9090177,909 Excess (deficiency) of revenues over expenditures350,000768,0638,173776,236 Total other financing sources (uses)0000 Net change in fund balance350,000768,0638,173776,236 Fund balance, July 1, 20082,131,1872,131,1874,2412,135,428 Fund balance, June 30, 20092,481,1872,899,25012,4142,911,664 (this page intentionally left blank) ÜÛÞÌ ÍÛÎÊ×ÝÛ ÚËÒÜÍ Ò±²» ±º ¬¸» Ý·¬§ ¼»¾¬ »®ª·½» º«²¼ ³»»¬ ¬¸» ½®·¬»®·¿ º±® ³¿¶±® º«²¼ ®»°±®¬·²¹ò Ì¸»®»º±®»ô ¬¸» ½±³¾·²·²¹ ¬¿¬»³»²¬ º±® ¿´´ ·²¼·ª·¼«¿´ ¼»¾¬ »®ª·½» º«²¼ ¿®» ®»°±®¬»¼ ¸»®»ò Ì¸» ½±³¾·²»¼ ¬±¬¿´ ¿®» ®»°±®¬»¼ ·² ¬¸» ½±³¾·²·²¹ ²±²³¿¶±® ¹±ª»®²³»²¬¿´ º«²¼ ¬¿¬»³»²¬ ¿¬ Þóï ¿²¼ Þóîò Í½¸»¼«´» ±º ®»ª»²«»ô »¨°»²¼·¬«®»ô ¿²¼ ½¸¿²¹» ·² º«²¼ ¾¿´¿²½» ó ¾«¼¹»¬ ¿²¼ ¿½¬«¿´ ¿®» ¿´± °®»»²¬»¼ ¸»®» º±® »¿½¸ ·²¼·ª·¼«¿´ ¼»¾¬ »®ª·½» º«²¼ò Ò±²³¿¶±® Ü»¾¬ Í»®ª·½» Ú«²¼æ ó Ì± ¿½½±«²¬ º±® ¬¸» ¿½½«³«´¿¬·±² ±º ®»±«®½» º±®ô ¿²¼ ¬¸» °¿§³»²¬ ±ºô ¹»²»®¿´ ±¾´·¹¿¬·±² ·²¼»¾¬»¼²» ±º ¬¸» Ý·¬§ô »¨½´«¼·²¹ ¼»¾¬ ¿½½±«²¬»¼ º±® ¿ °®±°®·»¬¿®§ º«²¼ ±® °»½·¿´ ¿»ó Ô·¾®¿®§ Ü»¾¬ Í»®ª·½» Ú«²¼ Í°»½·¿´ ß»³»²¬ Þ±²¼ Ü»¾¬ Í»®ª·½» Ú«²¼ ó Ì± ¿½½±«²¬ º±® °»½·¿´ ¿»³»²¬ ®»½»·ª¿¾´» ¿²¼ ¬¸» ·²¬»®»¬ ½±´´»½¬·±² ¿²¼ ·²¬»®»¬ ·²½±³»ò ó Ì± ¿½½±«²¬ º±® ¬¸» ¿½½«³«´¿¬·±² ±º ¬¿¨ ·²½®»³»²¬ ®»±«®½» ¿²¼ City of Eugene, OregonD-1 Combining Balance Sheet Nonmajor Debt Service Funds June 30, 2009 (amounts in dollars) SpecialUrban GeneralAssessmentRenewal ObligationLibraryBondAgencyTotal Assets Equity in pooled cash and investments063,551410,3635,772,7696,246,683 Receivables: Interest59,7540048,357108,111 Taxes337,83600174,122511,958 Assessments00605,8990605,899 Due from other governments35,8420017,23953,081 Assets held for resale001,54101,541 Total assets433,43263,5511,017,8036,012,4877,527,273 Liabilities and fund balances Liabilities Due to other funds9,1920009,192 Deferred revenue397,5900590,221222,4791,210,290 General obligation bond and revolving credit facility485,000000485,000 Total liabilities891,7820590,221222,4791,704,482 Fund balances Reserved for debt service(458,350)63,551426,041031,242 Reserved for assets held for resale001,54101,541 Unreserved0005,790,0085,790,008 Total fund balances(458,350)63,551427,5825,790,0085,822,791 Total liabilities and fund balances433,43263,5511,017,8036,012,4877,527,273 City of Eugene, OregonD-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Debt Service Funds For the fiscal year ended June 30, 2009 (amounts in dollars) SpecialUrban GeneralAssessmentRenewal ObligationLibraryBondAgencyTotal Revenues Taxes6,274,948001,870,7298,145,677 Special assessments00105,5260105,526 Miscellaneous57,9001,82048,288194,283302,291 Total revenues6,332,8481,820153,8142,065,0128,553,494 Expenditures Debt service: Principal4,790,0002,200,000121,31407,111,314 Interest1,653,107172,50034,76801,860,375 Issuance costs6,2000006,200 Total expenditures6,449,3072,372,500156,08208,977,889 Excess (deficiency) of revenues over expenditures(116,459)(2,370,680)(2,268)2,065,012(424,395) Other financing sources (uses) Proceeds of refunding bonds issuance5,600,0000005,600,000 Refunded bonds redeemed(5,593,800)000(5,593,800) Transfers in02,372,478002,372,478 Transfers out(485,000)0(697)(2,669,519)(3,155,216) Total other financing sources (uses)(478,800)2,372,478(697)(2,669,519)(776,538) Net change in fund balances(595,259)1,798(2,965)(604,507)(1,200,933) Fund balances, July 1, 2008136,90961,753430,5476,394,5157,023,724 Fund balances, June 30, 2009(458,350)63,551427,5825,790,0085,822,791 City of Eugene, OregonD-3 General Obligation Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes6,198,7296,274,94806,274,948 Miscellaneous53,00054,3963,50457,900 Total revenues6,251,7296,329,3443,5046,332,848 Expenditures Debt service6,279,4106,449,30706,449,307 Total expenditures6,279,4106,449,30706,449,307 Excess (deficiency) of revenues over expenditures(27,681)(119,963)3,504(116,459) Other financing sources (uses) Proceeds of refunding bonds issuance05,600,00005,600,000 Refunded bonds redeemed0(5,593,800)0(5,593,800) Transfers out00(485,000)(485,000) Total other financing sources (uses)06,200(485,000)(478,800) Net change in fund balance(27,681)(113,763)(481,496)(595,259) Fund balance, July 1, 2008133,388133,3883,521136,909 Fund balance, June 30, 2009105,70719,625(477,975)(458,350) City of Eugene, OregonD-4 Library Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental2,372,5002,372,478(2,372,478)0 Miscellaneous2,0001,6401801,820 Total revenues2,374,5002,374,118(2,372,298)1,820 Expenditures Debt service2,372,5002,372,50002,372,500 Total expenditures2,372,5002,372,50002,372,500 Excess (deficiency) of revenues over expenditures2,0001,618(2,372,298)(2,370,680) Other financing sources (uses) Transfers in002,372,4782,372,478 Total other financing sources (uses)002,372,4782,372,478 Net change in fund balance2,0001,6181801,798 Fund balance, July 1, 200861,70861,7084561,753 Fund balance, June 30, 200963,70863,32622563,551 City of Eugene, OregonD-5 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, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Special assessments00105,526105,526 Miscellaneous112,50047,0361,25248,288 Total revenues112,50047,036106,778153,814 Expenditures Debt service735,000156,0820156,082 Total expenditures735,000156,0820156,082 Excess (deficiency) of revenues over expenditures(622,500)(109,046)106,778(2,268) Other financing sources (uses) Principal payments received603,500105,526(105,526)0 Transfers out(20,000)(697)0(697) Total other financing sources (uses)583,500104,829(105,526)(697) Net change in fund balance(39,000)(4,217)1,252(2,965) Fund balance, July 1, 2008429,663429,663884430,547 Fund balance, June 30, 2009390,663425,4462,136427,582 City of Eugene, OregonD-6 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, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes1,925,0001,870,72901,870,729 Miscellaneous219,000181,07513,208194,283 Total revenues2,144,0002,051,80413,2082,065,012 Expenditures Intergovernmental2,437,5002,372,478(2,372,478)0 Total expenditures2,437,5002,372,478(2,372,478)0 Excess (deficiency) of revenues over expenditures(293,500)(320,674)2,385,6862,065,012 Other financing sources (uses) Transfers out(772,000)(297,041)(2,372,478)(2,669,519) Total other financing sources (uses)(772,000)(297,041)(2,372,478)(2,669,519) Net change in fund balance(1,065,500)(617,715)13,208(604,507) Fund balance, July 1, 20086,379,5066,379,50615,0096,394,515 Fund balance, June 30, 20095,314,0065,761,79128,2175,790,008 ÝßÐ×ÌßÔ ÐÎÑÖÛÝÌÍ ÚËÒÜÍ Ý±³¾·²·²¹ ¬¿¬»³»²¬ º±® ¿´´ ·²¼·ª·¼«¿´ ²±²³¿¶±® ½¿°·¬¿´ °®±¶»½¬ º«²¼ ¿®» ®»°±®¬»¼ ¸»®»ò Ì¸» ½±³¾·²»¼ ¬±¬¿´ ¿®» ®»°±®¬»¼ ·² ¬¸» ½±³¾·²·²¹ ²±²³¿¶±® ¹±ª»®²³»²¬¿´ º«²¼ ¬¿¬»³»²¬ ¿¬ Þóï ¿²¼ Þóîò Ú«²¼ ¬¿¬»³»²¬ º±® ³¿¶±® ½¿°·¬¿´ Í½¸»¼«´» ±º ®»ª»²«»ô »¨°»²¼·¬«®»ô ¿²¼ ½¸¿²¹» ·² º«²¼ ¾¿´¿²½» ó ¾«¼¹»¬ ¿²¼ ¿½¬«¿´ ¿®» ¿´± °®»»²¬»¼ ¸»®» º±® »¿½¸ ·²¼·ª·¼«¿´ ½¿°·¬¿´ °®±¶»½¬ º«²¼ò Ó¿¶±® Ý¿°·¬¿´ Ð®±¶»½¬ Ú«²¼æ Í§¬»³ Ü»ª»´±°³»²¬ Ý¿°·¬¿´ Ð®±¶»½¬ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ½±²¬®«½¬·±² ±º ¬¸» ²±²ó¿»¿¾´» °±®¬·±² ±º ½¿°¿½·¬§ó»²¸¿²½·²¹ ½¿°·¬¿´ °®±¶»½¬ò Ú·²¿²½·²¹ · °®±ª·¼»¼ ¾§ ¿ §¬»³ ¼»ª»´±°³»²¬ ½¸¿®¹» ´»ª·»¼ ¿¹¿·²¬ Ò±²³¿¶±® Ý¿°·¬¿´ Ð®±¶»½¬ Ú«²¼æ Î±¿¼ Ý¿°·¬¿´ Ð®±¶»½¬ Ú«²¼ Í°»½·¿´ ß»³»²¬ Ý¿°·¬¿´ Ð®±¶»½¬ Ú«²¼ó ¼»¾¬ô ¿²¼ ·²¬»®»¬ ±² ·²ª»¬³»²¬ò Ì®¿²°±®¬¿¬·±² Ý¿°·¬¿´ Ð®±¶»½¬ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ®»ª»²«» º®±³ ¼»¼·½¿¬»¼ ±«®½» ¿²¼ ®»´¿¬»¼ ²±²ó¼»ª»´±°³»²¬ ¬®¿²°±®¬¿¬·±² ½¿°·¬¿´ °®±¶»½¬ »¨°»²¼·¬«®»ò Î»ª»²«» ¿®» ¹»²»®¿¬»¼ °®·³¿®·´§ º®±³ ¿ üðòðë °»® ¹¿´´±² ´±½¿´ ³±¬±® ª»¸·½´» º«»´ ¬¿¨ ¿²¼ ¬¸» îððè Í¬®»»¬ Þ±²¼ò ó Ì± ¿½½±«²¬ º±® ½±¬ ±º ½±²¬®«½¬·²¹ ¿²¼ ·³°®±ª·²¹ ½¿°·¬¿´ ¿²¼ ·²¬»®»¬ ±² ·²ª»¬³»²¬ò ó Ì± ¿½½±«²¬ º±® ½±¬ ±º ½±²¬®«½¬·²¹ ¿²¼ ·³°®±ª·²¹ Î·ª»®º®±²¬ Ú«²¼ ¿²¼ ·²¬»®»¬ ±² ·²ª»¬³»²¬ò City of Eugene, OregonE-1 Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2009 (amounts in dollars) Urban UrbanRenewal SpecialRenewalAgency RoadAssessmentTransportationAgencyRiverfrontTotal Assets Equity in pooled cash and investments1,352,4272,400,1143,664134,973171,2834,062,461 Receivables: Accounts3,86400003,864 Assessments0259,177000259,177 Loans and notes033,47300033,473 Due from other governments546,5800000546,580 Assets held for resale0265001,867,2321,867,497 Total assets1,902,8712,693,0293,664134,9732,038,5156,773,052 Liabilities and fund balances Liabilities Accounts payable53,42308000054,223 Due to other governments0033600336 Deposits0907,976000907,976 Deferred revenue0292,915000292,915 Total liabilities53,4231,200,8911,136001,255,450 Fund balances Reserved for assets held for resale0265001,867,2321,867,497 Unreserved1,849,4481,491,8732,528134,973171,2833,650,105 Total fund balances1,849,4481,492,1382,528134,9732,038,5155,517,602 Total liabilities and fund balances1,902,8712,693,0293,664134,9732,038,5156,773,052 City of Eugene, OregonE-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Projects Funds For the fiscal year ended June 30, 2009 (amounts in dollars) Urban UrbanRenewal SpecialRenewalAgency RoadAssessmentTransportationAgencyRiverfrontTotal Revenues Intergovernmental1,815,94400001,815,944 Rental income49,592000049,592 Charges for services065,19300065,193 Special assessments089,35200089,352 Miscellaneous7,31481,00562,6524,73495,711 Total revenues1,872,850235,55062,6524,7342,115,792 Expenditures Debt service: Issuance costs0016,6830016,683 Capital outlay2,143,525271,806465,7952,741,16153,1895,675,476 Total expenditures2,143,525271,806482,4782,741,16153,1895,692,159 Excess (deficiency) of revenues over expenditures(270,675)(36,256)(482,472)(2,738,509)(48,455)(3,576,367) Other financing sources (uses) Transfers in1,680,0000485,0002,716,69804,881,698 Transfers out0(700,000)000(700,000) Total other financing sources (uses)1,680,000(700,000)485,0002,716,69804,181,698 Net change in fund balances1,409,325(736,256)2,528(21,811)(48,455)605,331 Fund balances, July 1, 2008440,1232,228,3940156,7842,086,9704,912,271 Fund balances, June 30, 20091,849,4481,492,1382,528134,9732,038,5155,517,602 City of Eugene, OregonE-3 General Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental300,00039,024039,024 Rental income20,00048,392048,392 Miscellaneous171,590161,63219,953181,585 Total revenues491,590249,04819,953269,001 Expenditures Current - departmental: Central services11,7078,11408,114 Debt service76,42838,998038,998 Capital outlay28,355,4538,425,07308,425,073 Total expenditures28,443,5888,472,18508,472,185 Excess (deficiency) of revenues over expenditures(27,951,998)(8,223,137)19,953(8,203,184) Other financing sources (uses) Principal payments received7,8327,123(7,123)0 Proceeds of debt issuance19,737,5944,345,00004,345,000 Transfers in2,649,3782,649,37802,649,378 Total other financing sources (uses)22,394,8047,001,501(7,123)6,994,378 Net change in fund balance(5,557,194)(1,221,636)12,830(1,208,806) Fund balance, July 1, 20086,514,5416,514,54113,2656,527,806 Fund balance, June 30, 2009957,3475,292,90526,0955,319,000 City of Eugene, OregonE-4 Road Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental6,581,0001,815,94401,815,944 Rental income35,60049,592049,592 Miscellaneous6,0003,3673,9477,314 Total revenues6,622,6001,868,9033,9471,872,850 Expenditures Capital outlay6,543,7732,143,52502,143,525 Total expenditures6,543,7732,143,52502,143,525 Excess (deficiency) of revenues over expenditures78,827(274,622)3,947(270,675) Other financing sources (uses) Transfers in1,680,0001,680,00001,680,000 Total other financing sources (uses)1,680,0001,680,00001,680,000 Net change in fund balance1,758,8271,405,3783,9471,409,325 Fund balance, July 1, 2008439,904439,904219440,123 Fund balance, June 30, 20092,198,7311,845,2824,1661,849,448 City of Eugene, OregonE-5 Special Assessment Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Charges for services065,193065,193 Special assessments0089,35289,352 Miscellaneous114,00074,4616,54481,005 Total revenues114,000139,65495,896235,550 Expenditures Debt service500,000000 Capital outlay6,347,490271,8060271,806 Total expenditures6,847,490271,8060271,806 Excess (deficiency) of revenues over expenditures(6,733,490)(132,152)95,896(36,256) Other financing sources (uses) Principal payments received109,00089,352(89,352)0 Proceeds of debt issuance5,703,910000 Transfers in40,000000 Transfers out(740,000)(700,000)0(700,000) Total other financing sources (uses)5,112,910(610,648)(89,352)(700,000) Net change in fund balance(1,620,580)(742,800)6,544(736,256) Fund balance, July 1, 20082,223,0292,223,0295,3652,228,394 Fund balance, June 30, 2009602,4491,480,22911,9091,492,138 City of Eugene, OregonE-6 Systems Development Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Rental income58,80081,627081,627 Charges for services6,515,6082,893,159(440,081)2,453,078 Miscellaneous403,224270,62814,091284,719 Total revenues6,977,6323,245,414(425,990)2,819,424 Expenditures Current - departmental: Central services42,000076,00076,000 Planning and development117,41770,353070,353 Public works413,235221,5590221,559 Debt service356,589356,5880356,588 Capital outlay13,900,2256,863,54906,863,549 Intergovernmental1,527,000440,792(440,792)0 Total expenditures16,356,4667,952,841(364,792)7,588,049 Excess (deficiency) of revenues over expenditures(9,378,834)(4,707,427)(61,198)(4,768,625) Other financing sources (uses) Principal payments received1,330711(711)0 Transfers out(76,000)(76,000)76,0000 Total other financing sources (uses)(74,670)(75,289)75,2890 Net change in fund balance(9,453,504)(4,782,716)14,091(4,768,625) Fund balance, July 1, 200810,383,35710,383,35719,56510,402,922 Fund balance, June 30, 2009929,8535,600,64133,6565,634,297 City of Eugene, OregonE-7 Transportation Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Miscellaneous0606 Total revenues0606 Expenditures Debt service130,00016,683016,683 Capital outlay3,350,000465,7950465,795 Total expenditures3,480,000482,4780482,478 Excess (deficiency) of revenues over expenditures(3,480,000)(482,472)0(482,472) Other financing sources (uses) Proceeds of debt issuance3,480,000485,000(485,000)0 Transfers in00485,000485,000 Total other financing sources (uses)3,480,000485,0000485,000 Net change in fund balance02,52802,528 Fund balance, July 1, 20080000 Fund balance, June 30, 200902,52802,528 City of Eugene, OregonE-8 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, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental2,782,7402,716,698(2,716,698)0 Miscellaneous16,0002,2723802,652 Total revenues2,798,7402,718,970(2,716,318)2,652 Expenditures Capital outlay2,879,3142,741,16102,741,161 Total expenditures2,879,3142,741,16102,741,161 Excess (deficiency) of revenues over expenditures(80,574)(22,191)(2,716,318)(2,738,509) Other financing sources (uses) Transfers in002,716,6982,716,698 Total other financing sources (uses)002,716,6982,716,698 Net change in fund balance(80,574)(22,191)380(21,811) Fund balance, July 1, 2008156,784156,7840156,784 Fund balance, June 30, 200976,210134,593380134,973 City of Eugene, OregonE-9 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, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Miscellaneous6,0004,4143204,734 Total revenues6,0004,4143204,734 Expenditures Capital outlay210,91853,189053,189 Total expenditures210,91853,189053,189 Excess (deficiency) of revenues over expenditures(204,918)(48,775)320(48,455) Total other financing sources (uses)0000 Net change in fund balance(204,918)(48,775)320(48,455) Fund balance, July 1, 2008219,322219,3221,867,6482,086,970 Fund balance, June 30, 200914,404170,5471,867,9682,038,515 (this page intentionally left blank) ÛÒÌÛÎÐÎ×ÍÛ ÚËÒÜÍ ß´´ ±º ¬¸» Ý·¬§ »²¬»®°®·» º«²¼ ³»»¬ ¬¸» ½®·¬»®·¿ º±® ³¿¶±® º«²¼ ®»°±®¬·²¹ ¿²¼ ¿®» ®»°±®¬»¼ ·² Û¨¸·¾·¬ êô éô ¿²¼ è ±º ¬¸» Í½¸»¼«´» ±º ®»ª»²«»ô »¨°»²»ô ¿²¼ ½¸¿²¹» ·² º«²¼ ²»¬ ¿»¬ ó ¾«¼¹»¬ ¿²¼ ¿½¬«¿´ ¿®» °®»»²¬»¼ ¸»®» º±® »¿½¸ ·²¼·ª·¼«¿´ »²¬»®°®·» º«²¼ò Ó¿¶±® Û²¬»®°®·» Ú«²¼æ ß³¾«´¿²½» Ì®¿²°±®¬ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ¬¸» ±°»®¿¬·±² ±º »³»®¹»²½§ ³»¼·½¿´ »®ª·½» °®±ª·¼»¼ ¬± ¬¸» °«¾´·½ò Î»ª»²«» ¿®» °®±ª·¼»¼ ¾§ «»® ½¸¿®¹»ò Ó«²·½·°¿´ ß·®°±®¬ Ú«²¼ ó Ì± ¿½½±«²¬ º±® ¬¸» ±°»®¿¬·±² ±º ¬¸» ³«²·½·°¿´ ¿·®°±®¬ò Ð®·²½·°¿´ ±«®½» ±º ®»ª»²«» ¿®» ®»²¬¿´ ±º ¬»®³·²¿´ °¿½» ¬± ¿·®´·²» ¿²¼ ±¬¸»® »®ª·½» °®±ª·¼»®ô ´¿²¼·²¹ º»»ô ¿²¼ °¿®µ·²¹ º»»ò Ì¸» º«²¼ ó ³»²¬ò Ì¸» º«²¼ ¿´± ·³°±» °¿»²¹»® º¿½·´·¬§ ½¸¿®¹» ±² °¿»²¹»® «¬·´·¦·²¹ ¬¸» ¿·®°±®¬ô ¬¸» °®±½»»¼ ±º Ð¿®µ·²¹ Í»®ª·½» Ú«²¼ º¿½·´·¬·»ò ó ó City of Eugene, OregonF-1 Ambulance Transport Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental021,876(21,876)0 Charges for services7,481,8475,985,24705,985,247 Miscellaneous61,40098,38242198,803 Total revenues7,543,2476,105,505(21,455)6,084,050 Expenses Current - departmental: Central services00379,000379,000 Fire and emergency medical services6,557,0386,162,025(38,946)6,123,079 Depreciation0059,59359,593 Loss on sale of capital asset0026,87426,874 Total expenses6,557,0386,162,025426,5216,588,546 Excess (deficiency) of revenues over expenses986,209(56,520)(447,976)(504,496) Other financing sources (uses) Transfers out(721,115)(721,115)379,000(342,115) Total other financing sources (uses)(721,115)(721,115)379,000(342,115) Change in net assets265,094(777,635)(68,976)(846,611) Total net assets, July 1, 2008952,867952,867708,5971,661,464 Total net assets, June 30, 20091,217,961175,232639,621814,853 City of Eugene, OregonF-2 Municipal Airport Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental6,120,1332,785,127(2,785,127)0 Rental income3,113,9072,790,25202,790,252 Charges for services4,523,9044,157,52504,157,525 Fines and forfeits8,5007,90007,900 Miscellaneous301,690378,926(25,709)353,217 Total revenues14,068,13410,119,730(2,810,836)7,308,894 Expenses Current - departmental: Central services00503,000503,000 Fire and emergency medical services706,237691,086(9,451)681,635 Police366,190366,189(5,390)360,799 Public works5,209,8574,818,454(59,476)4,758,978 Capital outlay10,323,0175,087,806(5,087,806)0 Depreciation003,901,9993,901,999 Loss on sale of capital asset002,9772,977 Total expenses16,605,30110,963,535(754,147)10,209,388 Excess (deficiency) of revenues over expenses(2,537,167)(843,805)(2,056,689)(2,900,494) Other financing sources (uses) Principal payments received58,88158,859(58,859)0 Capital contributions002,833,7162,833,716 Transfers out(503,000)(503,000)265,331(237,669) Total other financing sources (uses)(444,119)(444,141)3,040,1882,596,047 Change in net assets(2,981,286)(1,287,946)983,499(304,447) Total net assets, July 1, 200812,010,68112,010,68171,790,98683,801,667 Total net assets, June 30, 20099,029,39510,722,73572,774,48583,497,220 City of Eugene, OregonF-3 Parking Services Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Rental income593,600587,498(25,200)562,298 Charges for services2,995,6672,918,34502,918,345 Fines and forfeits989,200833,6420833,642 Miscellaneous67,00069,6425,27974,921 Total revenues4,645,4674,409,127(19,921)4,389,206 Expenses Current - departmental: Central services466,357433,595184,550618,145 Planning and development2,906,1752,798,119(44,178)2,753,941 Public works24,74120,5251,80122,326 Debt service696,513696,513(332,494)364,019 Capital outlay250,337206,001(206,001)0 Depreciation00781,466781,466 Amortization003,1503,150 Total expenses4,344,1234,154,753388,2944,543,047 Excess (deficiency) of revenues over expenses301,344254,374(408,215)(153,841) Other financing sources (uses) Transfers in17,50017,500017,500 Transfers out(751,900)(751,900)191,000(560,900) Total other financing sources (uses)(734,400)(734,400)191,000(543,400) Change in net assets(433,056)(480,026)(217,215)(697,241) Total net assets, July 1, 20082,999,7812,999,78114,472,31517,472,096 Total net assets, June 30, 20092,566,7252,519,75514,255,10016,774,855 City of Eugene, OregonF-4 Stormwater Utility Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licenses and permits137,50073,203073,203 Intergovernmental1,017,890614,375(614,375)0 Rental income32,00039,145039,145 Charges for services12,062,99011,721,828(750)11,721,078 Fines and forfeits4001,16001,160 Miscellaneous211,333226,34018,819245,159 Total revenues13,462,11312,676,051(596,306)12,079,745 Expenses Current - departmental: Central services00921,000921,000 Public works10,493,2669,225,776(309)9,225,467 Capital outlay6,781,8663,476,309(3,476,309)0 Depreciation001,262,8941,262,894 Intergovernmental15,000750(750)0 Total expenses17,290,13212,702,835(1,293,474)11,409,361 Excess (deficiency) of revenues over expenses(3,828,019)(26,784)697,168670,384 Other financing sources (uses) Capital contributions001,014,4851,014,485 Transfers out(921,000)(921,000)908,000(13,000) Total other financing sources (uses)(921,000)(921,000)1,922,4851,001,485 Change in net assets(4,749,019)(947,784)2,619,6531,671,869 Total net assets, July 1, 20088,562,0148,562,01443,630,61752,192,631 Total net assets, June 30, 20093,812,9957,614,23046,250,27053,864,500 City of Eugene, OregonF-5 Wastewater Utility Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental02,966(2,966)0 Rental income17,00024,960024,960 Charges for services39,342,41335,680,438(15,308,243)20,372,195 Fines and forfeits2,0004,67604,676 Miscellaneous133,000231,1996,581237,780 Total revenues39,494,41335,944,239(15,304,628)20,639,611 Expenses Current - departmental: Central services001,375,0001,375,000 Public works20,268,38018,184,314(178,044)18,006,270 Capital outlay3,787,7082,385,806(2,385,806)0 Depreciation003,818,0853,818,085 Intergovernmental16,720,00015,308,243(15,308,243)0 Total expenses40,776,08835,878,363(12,679,008)23,199,355 Excess (deficiency) of revenues over expenses(1,281,675)65,876(2,625,620)(2,559,744) Other financing sources (uses) Capital contributions001,244,8661,244,866 Transfers out(1,375,000)(1,375,000)1,375,0000 Total other financing sources (uses)(1,375,000)(1,375,000)2,619,8661,244,866 Change in net assets(2,656,675)(1,309,124)(5,754)(1,314,878) Total net assets, July 1, 20084,149,5154,149,51597,668,797101,818,312 Total net assets, June 30, 20091,492,8402,840,39197,663,043100,503,434 (this page intentionally left blank) ×ÒÌÛÎÒßÔ ÍÛÎÊ×ÝÛ ÚËÒÜÍ Ý±³¾·²·²¹ ¬¿¬»³»²¬ º±® ¿´´ ·²¬»®²¿´ »®ª·½» º«²¼ ¿®» ®»°±®¬»¼ ¸»®»ò Ì¸» ½±³¾·²»¼ ¬±¬¿´ ¿®» ®»°±®¬»¼ ¿´±²¹·¼» ¬¸» Í½¸»¼«´» ±º ®»ª»²«»ô »¨°»²»ô ¿²¼ ½¸¿²¹» ·² º«²¼ ²»¬ ¿»¬ ó ¾«¼¹»¬ ¿²¼ ¿½¬«¿´ ¿®» ¿´± °®»»²¬»¼ ¸»®» º±® »¿½¸ ·²¼·ª·¼«¿´ ·²¬»®²¿´ »®ª·½» º«²¼ò Ò±²³¿¶±® ×²¬»®²¿´ Í»®ª·½» Ú«²¼æ Ú¿½·´·¬·» Í»®ª·½» Ú«²¼ ó Ì± ¿½½±«²¬ º±® º¿½·´·¬§ ³¿·²¬»²¿²½» »®ª·½» ±² Ý·¬§ ¾«·´¼·²¹ò Ú¿½·´·¬§ ³¿·²¬»²¿²½» ®¿¬» ¿²¼ ®»²¬¿´ ®¿¬» ¿®» ½¸¿®¹»¼ ±² ¬¸» ¾¿· ±º ¯«¿®» º±±¬¿¹» ¿²¼ ¿®» »¬ ¬± ®»½±ª»® ¬¸» º«´´ ½±¬ ±º »®ª·½» °®±ª·¼»¼ò Ú´»»¬ Í»®ª·½» Ú«²¼ ó Ì± ¿½½±«²¬ º±® ¬¸» °«®½¸¿» ±º ª»¸·½´» ¿²¼ »¯«·°³»²¬ ¿²¼ ¬¸» ³¿·²¬»²¿²½» ¬¸»®»±²ò ¿²¼ »¯«·°³»²¬ ±´¼ ±® ®»³±ª»¼ º®±³ «»ò ó Ì± ¿½½±«²¬ º±® ¼¿¬¿ °®±½»·²¹ ¿²¼ ®»°®±¼«½¬·±²ô »¯«·°³»²¬ ¿½¯«··ó ¬·±² ¿²¼ ³¿·²¬»²¿²½»ô °±¬¿¹»ô ¬»´»°¸±²»ô ³·²«¬» ®»½±®¼·²¹ô ¿²¼ °®·²¬·²¹ñ¹®¿°¸·½ »®ª·½» °®±ª·¼»¼ ¬± ±¬¸»® Ý·¬§ º«²¼ò Ë»® ½¸¿®¹» ½±ª»® ¬¸» ½±¬ ±º ±°»®¿¬·±² ¿²¼ «°°´·»ò Ð®±º»·±²¿´ Í»®ª·½» Ú«²¼ ±¬¸»® Ý·¬§ º«²¼ò Î»ª»²«» ¿®» °®±ª·¼»¼ ¾§ ½¸¿®¹» º±® ¬¸»» »®ª·½»ò ó Ì± ¿½½±«²¬ º±® ½±¬ ±º ¬¸» Ý·¬§ »´ºó·²«®¿²½» °®±¹®¿³ò Ì¸» Ý·¬§ · »´ºó·²«®»¼ ·²«®¿²½»ò ß² ¿½¬«¿®·¿´ ª¿´«¿¬·±² · ¬¸» ¾¿· º±® ®»½±®¼·²¹ ¬¸» ½´¿·³ ´·¿¾·´·¬§ò Ë»® ½¸¿®¹» ¿®» ¾¿»¼ ±² ¿½¬«¿´ »¨°»®·»²½» ±® ¿² »¬·³¿¬»ô ¼»°»²¼·²¹ ±² ¬¸» ²¿¬«®» ±º ¬¸» ·²«®¿²½»ò Ì¸· º«²¼ ¿´± ¿½½±«²¬ º±® ¬¸» G-1 City of Eugene, Oregon Combining Statement of Net Assets All Internal Service Funds June 30, 2009 (amounts in dollars)Information FacilitiesFleetSystems andProfessionalRisk and AssetsServicesServicesServicesServicesBenefitsTotal Current assets Equity in pooled cash and investments25,609,44711,397,4953,934,6131,797,35821,832,20764,571,120 Receivables: Accounts08,7681,75730,8112,74444,080 Allowance for uncollectibles000(9,246)0(9,246) Due from other governments8,1223553,58733,0803,38098,204 Interfund loans receivable0153,036000153,036 Inventories0297,531000297,531 Prepaids and deposits0038,000025,20063,200 Total current assets25,617,56911,856,8654,027,9571,852,00321,863,53165,217,925 Noncurrent assets Deferred charges9,443000546,508555,951 Pension assets000061,220,36461,220,364 Capital assets: Land0455,834000455,834 Improvements other than buildings051,91300051,913 Buildings and equipment4,113,28838,179,9191,931,306234,4237,99544,466,931 Accumulated depreciation(1,048,921)(18,872,383)(1,708,795)(143,963)(266)(21,774,328) Total noncurrent assets3,073,81019,815,283222,51190,46061,774,60184,976,665 Total assets28,691,37931,672,1484,250,4681,942,46383,638,132150,194,590 Liabilities Current liabilities Accounts payable34,728196,53547,8987,79276,760363,713 Wages payable253,386132,637126,189235,22793,517840,956 Compensated absences payable281,962126,744149,102199,16766,606823,581 Due to other governments0023,7090023,709 Claims payable000010,133,77710,133,777 Deposits88000091,36292,242 Interfund loans payable153,0360000153,036 Interest payable6,511000276,198282,709 Unearned revenue133,0000000133,000 Certificates of participation payable120,0000000120,000 Bonds payable0000706,986706,986 Total current liabilities983,503455,916346,898442,18611,445,20613,673,709 Noncurrent liabilities Compensated absences payable23,89056,72999029,216109,934 Certificates of participation payable1,305,00000001,305,000 Bonds payable (net of unamortized discount/premium)000063,598,84363,598,843 Net OPEB obligation32,1006,4718,60219,4863,591,8493,658,508 Total noncurrent liabilities1,360,99063,2008,70119,48667,219,90868,672,285 Total liabilities2,344,493519,116355,599461,67278,665,11482,345,994 Net assets Invested in capital assets (net of related debt)1,639,36719,815,283222,51190,4607,72921,775,350 Unrestricted24,707,51911,337,7493,672,3581,390,3314,965,28946,073,246 Total net assets26,346,88631,153,0323,894,8691,480,7914,973,01867,848,596 (this page intentionally left blank) G-2 City of Eugene, Oregon Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets All Internal Service Funds For the fiscal year ended June 30, 2009 (amounts in dollars) Information FacilitiesFleetSystems andProfessionalRisk and ServicesServicesServicesServicesBenefitsTotal Operating revenues Licenses and permits0001,99001,990 Intergovernmental00055,8187,63063,448 Rental income759,18530,204000789,389 Charges for services10,319,9037,527,1577,017,2325,345,73224,759,00954,969,033 Fines and forfeits023,00000023,000 Miscellaneous9,48035,4092,965038,95586,809 Total operating revenues11,088,5687,615,7707,020,1975,403,54024,805,59455,933,669 Operating expenses Personnel services4,628,0772,371,4632,292,4423,861,9522,546,15915,700,093 Contractual services606,406298,510562,243187,6964,468,7266,123,581 Materials and supplies429,6461,985,6681,768,033113,389169,3954,466,131 Maintenance549,299538,204385,742242,77975,8791,791,903 Utilities2,246,42920,568736,38270,75814,7063,088,843 Rent5,5580199,292142,34881,701428,899 Taxes11,494000011,494 Insurance29,771158,87010,84315,8001,604,9171,820,201 Claims000018,583,91518,583,915 Centralbusinessfunctions627000627,000370,000394,000579,000187,0002,157,0003700003940005790001870002157000 Depreciation107,5192,902,768130,15216,2162673,156,922 Intergovernmental4,500,00000004,500,000 Total operating expenses13,741,1998,646,0516,479,1295,229,93827,732,66561,828,982 Operating income (loss)(2,652,631)(1,030,281)541,068173,602(2,927,071)(5,895,313) Nonoperating revenues (expenses) Interest revenue836,903348,182122,16343,696786,1452,137,089 Interest expense(95,875)000(4,462,197)(4,558,072) Gain (loss) on sale of capital asset0(65,114)3500(65,079) Amortization of issuance costs(2,136)000(38,403)(40,539) Total nonoperating revenues (expenses)738,892283,068122,19843,696(3,714,455)(2,526,601) Income (loss) before capital contributions and transfers(1,913,739)(747,213)663,266217,298(6,641,526)(8,421,914) Capital contributions0337,886000337,886 Transfers in01,144,6360001,144,636 Transfers out(1,000,000)(7,533)(5,308)0(1,042,000)(2,054,841) Change in net assets(2,913,739)727,776657,958217,298(7,683,526)(8,994,233) Total net assets, July 1, 200829,260,62530,425,2563,236,9111,263,49312,656,54476,842,829 Total net assets, June 30, 200926,346,88631,153,0323,894,8691,480,7914,973,01867,848,596 City of Eugene, OregonG-4 Facilities Services Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental0621(621)0 Rental income637,930789,820(30,635)759,185 Charges for services10,774,23110,319,903010,319,903 Miscellaneous1,193,000779,64366,740846,383 Total revenues12,605,16111,889,98735,48411,925,471 Expenses Current - departmental: Central services9,065,4018,406,986476,5158,883,501 Planning and development252,645250,1790250,179 Debt service217,178211,379(115,504)95,875 Capital outlay229,1281,109(1,109)0 Depreciation00107,519107,519 Amortization002,1362,136 Intergovernmental4,500,0004,500,00004,500,000 Total expenses14,264,35213,369,653469,55713,839,210 Excess (deficiency) of revenues over expenses(1,659,191)(1,479,666)(434,073)(1,913,739) Other financing sources (uses) Interfund loans issued and repaid(277,045)(277,045)277,0450 Transfers out(1,627,000)(1,627,000)627,000(1,000,000) Total other financing sources (uses)(1,904,045)(1,904,045)904,045(1,000,000) Change in net assets(3,563,236)(3,383,711)469,972(2,913,739) Total net assets, July 1, 200828,583,71928,583,719676,90629,260,625 Total net assets, June 30, 200925,020,48325,200,0081,146,87826,346,886 City of Eugene, OregonG-5 Fleet Services Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Rental income21,00030,204030,204 Charges for services7,437,7977,527,15707,527,157 Fines and forfeits0023,00023,000 Miscellaneous456,000496,528(112,937)383,591 Total revenues7,914,7978,053,889(89,937)7,963,952 Expenses Current - departmental: Central services00370,000370,000 Public works11,192,1796,986,156(1,612,873)5,373,283 Capital outlay21,433000 Depreciation002,902,7682,902,768 Loss on sale of capital asset0065,11465,114 Total expenses11,213,6126,986,1561,725,0098,711,165 Excess (deficiency) of revenues over expenses(3,298,815)1,067,733(1,814,946)(747,213) Other financing sources (uses) Capitalcontributionsapa conruons00337886,337886, Citltibti00337886337886 Interfund loan proceeds and repayments277,045277,045(277,045)0 Transfers in1,462,000893,967250,6691,144,636 Transfers out(370,000)(370,000)362,467(7,533) Total other financing sources (uses)1,369,045801,012673,9771,474,989 Change in net assets(1,929,770)1,868,745(1,140,969)727,776 Total net assets, July 1, 20089,159,8269,159,82621,265,43030,425,256 Total net assets, June 30, 20097,230,05611,028,57120,124,46131,153,032 City of Eugene, OregonG-6 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, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Charges for services7,317,2447,017,23207,017,232 Miscellaneous92,000113,74411,419125,163 Total revenues7,409,2447,130,97611,4197,142,395 Expenses Current - departmental: Central services7,551,0066,158,567190,4106,348,977 Depreciation00130,152130,152 Total expenses7,551,0066,158,567320,5626,479,129 Excess (deficiency) of revenues over expenses(141,762)972,409(309,143)663,266 Other financing sources (uses) Transfers out(394,000)(394,000)388,692(5,308) Total other financing sources (uses)(394,000)(394,000)388,692(5,308) Change in net assets(535,762)578,40979,549657,958 Total net assets, July 1, 20083,196,2173,196,21740,6943,236,911 Total net assets, June 30, 20092,660,4553,774,626120,2433,894,869 City of Eugene, OregonG-7 Professional Services Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licenses and permits10,0001,99001,990 Intergovernmental110,00055,818055,818 Charges for services6,272,2925,345,73205,345,732 Miscellaneous35,00039,8933,80343,696 Total revenues6,427,2925,443,4333,8035,447,236 Expenses Current - departmental: Central services00579,000579,000 Public works5,828,6144,693,131(58,409)4,634,722 Depreciation0016,21616,216 Total expenses5,828,6144,693,131536,8075,229,938 Excess (deficiency) of revenues over expenses598,678750,302(533,004)217,298 Other financing sources (uses) Transfers out(579,000)(579,000)579,0000 Total other financing sources (uses)(579,000)(579,000)579,0000 Change in net assets19,678171,30245,996217,298 Total net assets, July 1, 20081,431,2681,431,268(167,775)1,263,493 Total net assets, June 30, 20091,450,9461,602,570(121,779)1,480,791 City of Eugene, OregonG-8 Risk and Benefits Fund Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual For the fiscal year ended June 30, 2009 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental22,01112,659(5,029)7,630 Charges for services29,720,92924,759,009024,759,009 Miscellaneous1,107,600993,773(168,673)825,100 Total revenues30,850,54025,765,441(173,702)25,591,739 Expenses Current - departmental: Central services28,300,28526,461,1281,271,27027,732,398 Debt service4,299,5004,299,373162,8244,462,197 Depreciation00267267 Amortization0038,40338,403 Total expenses32,599,78530,760,5011,472,76432,233,265 Excess (deficiency) of revenues over expenses(1,749,245)(4,995,060)(1,646,466)(6,641,526) Other financing sources (uses) Transfers out(1,229,000)(1,229,000)187,000(1,042,000) Total other financing sources (uses)(1,229,000)(1,229,000)187,000(1,042,000) Change in net assets(2,978,245)(6,224,060)(1,459,466)(7,683,526) Total net assets, July 1, 200813,966,90713,966,907(1,310,363)12,656,544 Total net assets, June 30, 200910,988,6627,742,847(2,769,829)4,973,018 ÑÌØÛÎ ÍËÐÐÔÛÓÛÒÌßÎÇ ÍÝØÛÜËÔÛÍ City of Eugene, OregonH-1 Schedule of Property Tax Transactions For the fiscal year ended June 30, 2009 (amounts in dollars) Uncollected Adjustments, Uncollected balancesCurrentinterest, and balances Fiscal yearJuly 1, 2008year's levydiscountsCollectionsJune 30, 2009 1965-02590,901010,407(19,214)582,094 200376,79102,829(15,113)64,507 200494,3850(1,703)(24,261)68,421 2005147,764023,942(84,449)87,257 2006452,699027,104(338,782)141,021 2007925,105013,371(457,941)480,535 20082,250,6450(86,806)(1,099,649)1,064,190 2009088,929,425(2,525,855)(83,787,874)2,615,696 Totals4,538,29088,929,425(2,536,711)(85,827,283)5,103,721 Summary by fund type General Fund(74,394,838)4,384,519 Special Revenue Funds(3,287,596)207,244 Debt Service Funds(8,144,849)511,958 Totals(85,827,283)5,103,721 (this page intentionally left blank) ÍÌßÌ×ÍÌ×ÝßÔ ÍÛÝÌ×ÑÒ Ì¸»» ½¸»¼«´» ½±²¬¿·² ·²º±®³¿¬·±² ¬± ¸»´° ¬¸» ®»¿¼»® ¿» ¬¸» º¿½¬±® ¿ºº»½¬·²¹ ¬¸» Ý·¬§ù ¿¾·´·¬§ ¬± ¹»²»®¿¬» ·¬ °®±°»®¬§ ¬¿¨»ò Ì¸»» ½¸»¼«´» °®»»²¬ ·²º±®³¿¬·±² ¬± ¸»´° ¬¸» ®»¿¼»® ¿» ¬¸» ¿ºº±®¼¿¾·´·¬§ ±º ¬¸» Ý·¬§ù ½«®®»²¬ ´»ª»´ ±º ±«¬¬¿²¼·²¹ ¼»¾¬ ¿²¼ ¬¸» Ý·¬§ù ¿¾·´·¬§ ¬± ·«» ¿¼¼·¬·±²¿´ ¼»¾¬ ·² ¬¸» º«¬«®»ò Ì¸»» ½¸»¼«´» ±ºº»® ¼»³±¹®¿°¸·½ ¿²¼ »½±²±³·½ ·²¼·½¿¬±® ¬± ¸»´° ¬¸» ®»¿¼»® «²¼»®¬¿²¼ ¬¸» »²ª·®±²³»²¬ ¹±ª»®²³»²¬ò Ì¸»» ½¸»¼«´» ½±²¬¿·² ·²º±®³¿¬·±² ¿¾±«¬ ¬¸» Ý·¬§ù ±°»®¿¬·±² ¿²¼ ®»±«®½» ¬± ¸»´° ¬¸» ®»¿¼»® «²¼»®¬¿²¼ (this page intentionally left blank) City of Eugene, Oregon I-8 Ten Principal Property Taxpayers Current year and five years ago - unaudited (amounts in dollars) FY 2009FY 2004 PercentagePercentage of totalof total TaxabletaxableTaxabletaxable assessedassessedassessedassessed Taxpayervaluevaluevaluevalue Hynix Semiconductor393,442,6123.58%456,687,9355.21% Valley River Center LLC96,563,6390.88%77,129,5920.88% QWEST Corporation (formerly US West)67,929,3000.62%102,625,3601.17% Northwest Natural Gas Company43,212,0000.39%33,742,0000.38% Verizon Wireless VAW LLC38,936,9000.35% - - Molecular Probes, Inc.37,129,6940.34% - - Chase Village LLC31,477,6130.29% - - Guard Publishing Company30,876,7760.28%28,550,2870.33% McKay Investment Company25,965,2650.24%18,781,6900.21% Trus Joist, Inc.24,352,1010.22%23,352,6500.27% PeaceHealth (formerly Sacred Heart Hospital) -26,828,1900.31% - Metropolitan Life Insurance Company -18,186,9510.21% - SHLPFinancingLLCnancng-28476456,,032%. SHLPFiiLLC28476456032% - Subtotal789,885,9007.19%814,361,1119.29% All other taxpayers10,204,528,20992.81%7,958,736,60490.71% Total taxpayers 10,994,414,109100.00%8,773,097,715100.00% Notes a) Reliable top ten taxpayer information is not available prior to FY2004. Therefore, the City will use FY2004 for comparative purposes until FY2014. b) Verizon Wireless VAWLLC, Molecular Probes, Inc., and Chase Village LLC were not among the top ten taxpayers in FY2004. c) PeaceHealth, Metropolitan Life Insuance Company, and SHLP Financing LLC were not among the top ten taxpayers in FY2009. Data source Lane County Department of Assessment and Taxation City of Eugene Finance Division City of Eugene, Oregon I-10 Ratio of General Bonded Debt Outstanding Last ten fiscal years - unaudited (amounts in dollars) General bonded debt outstanding GeneralPercentage obligationCertificates ofof real marketPer Fiscal yearbondsparticipationLimited tax bondsTotalvaluecapita 200039,530,00020,765,3879,071,39369,366,780 0.70% 508 200137,750,00019,265,3508,315,17465,330,524 0.61% 471 200235,865,00017,665,00075,491,461129,021,461 1.21% 918 200342,010,00016,005,00076,053,652134,068,652 1.26% 942 200445,955,00016,310,00076,560,046138,825,046 1.24% 965 200543,300,00014,250,00077,013,970134,563,970 1.08% 930 200641,195,00012,075,00078,291,989131,561,989 0.93% 900 200739,660,0009,785,00070,659,254120,104,254 0.60% 808 200840,130,0007,365,00070,504,879117,999,879 0.52% 768 20094,576,5188,188,0574,074,57216,839,147 0.07% 109 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 City of Eugene, Oregon I-11 Direct and Overlapping Governmental Activities Debt As of June 30, 2009 - unaudited (amounts in dollars) PercentageCity's share Debtapplicableof overlapping Governmental unitoutstandingto the Citydebt City of Eugene108,843,863100.0000%108,843,863 Less: Funds available for principal payment(31,242) City of Eugene net direct debt108,812,621 Junction City Water Control District282,1740.7806%2,203 Lane Community College91,988,52245.2084%41,586,539 Lane County91,017,94945.8224%41,706,609 Lane Education Service District7,975,00045.9014%3,660,637 River Road Park and Recreation District855,0000.6076%5,195 School District 4J183,695,00079.2851%145,642,764 School District 5228,990,00079.5799%23,070,213 Total overlapping debt255,674,160 Total direct and overlapping debt364,486,781 Notes a) In FY09, the General Obligation Debt Service Fund had a deficit balance due to borrowing $485,000 from a short term revolving credit facility for transportation capital projects. The credit facility will be repaid in FY10 from general property tax revenues. Data source Oregon State Treasury Debt Management Information System City of Eugene Finance Division City of Eugene, Oregon I-13 Pledged-Revenue Coverage - Special Assessment Bonds Last ten fiscal years - unaudited (amounts in dollars) Special assessment Fiscal yearcollectionsPrincipalInterestDebt serviceCoverage 20001,086,762385,00095,152480,1522.26 2001742,566680,00090,631770,6310.96 2002662,621535,00064,149599,1491.11 2003371,393280,00039,563319,5631.16 2004327,059225,00028,650253,6501.29 2005140,707140,00018,530158,5300.89 2006102,930190,00010,540200,5400.51 2007266,270220,05752,192272,2490.98 2008255,922207,94643,556251,5021.02 2009152,562121,31434,768156,0820.98 Notes a) These bonds are backed by the full faith and credit of the City. Data source City of Eugene Finance Division City of Eugene, Oregon I-14 Demographic and Economic Statistics Last ten fiscal years - unaudited City of EugeneLane County Personal UnemploymentincomePercapita Fiscal yearPopulationratePopulation(thousands)income 2000136,4905.00%320,9708,247,54425,494 2001138,6156.40%323,9508,420,55725,917 2002140,5506.70%325,9008,672,33726,471 2003142,3807.50%328,1508,846,99926,744 2004143,9106.80%329,4009,288,68027,943 2005144,6405.50%333,3509,811,89629,209 2006146,1604.80%336,08510,483,14530,825 2007148,5954.60%339,740n/an/a 2008153,6905.70%343,140n/an/a 2009154,62010.10%345,880n/an/a Notes a) Personal income information is not available for the City. b) Personal and Per Capita income for Lane County was computed using Census Bureau midyear population estimates. c) Population is reported as of July 1 of each fiscal year. d) Unemployment rates presented are annualized for the calendar year through FY2008. The FY2009 unemployment rate is as of September, 2009 (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 City of Eugene, Oregon I-15 Ten Principal Employers Current year and nine years ago - unaudited 20092000 PercentagePercentage of totalof total EmployerEmployeesemploymentEmployeesemployment PeaceHealth Medical Group4,8932.97%3,5002.19% University of Oregon4,0382.45%3,5072.20% Eugene School District 4J2,7941.70%1,9291.21% Monaco Coach Corp.2,4001.46% - - Lane County2,0001.22%1,6321.02% State of Oregon2,0001.22%1,3010.81% US Government1,8001.09%3,6002.25% City of Eugene1,5470.94%1,3780.86% Springfield School District1,5000.91%1,5000.94% Lane Community College1,1180.68%2,0001.25% Weyerhaeuser Company -1,6701.05% - Total24,09014.64%22,01713.78% 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) Monaco Coach Corp. was not a top ten employer in FY2000. d) Weyerhaeuser Company was not a top ten employer in FY2009. Data source Eugene Chamber of Commerce Oregon Employment Department Lane County Financial Services City of Eugene, Oregon I-16 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 Notes a)ThisschedulewasaddedwiththeimplementationofGASB34effectivewithFY2002as sceue was ae wempemenaon o, eecve w. )ThihdldddiththilttifGASB34fftiithFY2002 b) Number of employees is provided per Full-Time Equivalent (FTE) for full-time and part-time regular employees as of the last day of the fiscal year. c) FTE by function is not available prior to FY2002. Data source City of Eugene Finance Division City of Eugene, Oregon I-18 Capital Asset Statistics by Function/Program Last ten fiscal years - unaudited Fiscal Year 2000200120022003200420052006200720082009 Function/Program Fire and emergency medical services: Ambulances888991010111110 Fire stations10101010101111111111 Fire trucks25252526242324232929 Library, recreation, and cultural services: Amphitheatre1111111111 Performing arts center1111111111 Community centers8888888888 9-hole golf course1111111111 Indoor/outdoor pool3333333333 Police: Patrol vehicles55555760515163636542 Public works: Jogging and hiking trails (miles)15151623272729292928 On/off street biking trails (miles)120112115119122122126130132153 Park acreage2,1592,2842,4002,4002,9022,9022,9023,1503,6703,671 Sttitid(il)Streets maintained (miles)487487498501503510511516526538533498501503510511516526538533 Alleys (miles)49434343434342424242 Sidewalks (miles)585601606616621622633654673700 Drainage Lines (miles)504508529506525518527567567567 Sanitary sewers (miles)741750754754770774781797807813 Data source Individual City Departments (this page intentionally left blank) ßËÜ×Ì ÝÑÓÓÛÒÌÍ ßÒÜ ÙÑÊÛÎÒÓÛÒÌ ßËÜ×Ì×ÒÙ ÍÌßÒÜßÎÜÍ ÍÛÝÌ×ÑÒÍ ßËÜ×Ì ÝÑÓÓÛÒÌÍ AUDIT COMMENTS (Comments and Disclosures Required by State Regulators) _________ Oregon Administrative Rules 162-010-050 through 162-010-320, 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. (this page intentionally left blank) COMMENTS AND DISCLOSURES OF INDEPENDENT AUDITORS' REQUIRED BY STATE STATUTE To the Honorable Mayor, Members of the City Council and the City Manager City of Eugene, Oregon We have audited the financial statements and schedules of City of Eugene, Oregon as of and for the year ended June 30, 2009, and have issued our report thereon dated November 13, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State, and 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. Compliance with laws, regulations, contracts and grants applicable to the City of Eugene, Oregon is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the City’s compliance with certain provisions of laws, regulations, contracts and grants. However, our objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. Certain areas covered, as required by Oregon Administrative Rules 162-10-230 through 162-10-320, included but were not limited to the following: Accounting and Internal Control Structure - Our report on the accounting and internal control structure is presented separately under this cover. Programs Funded from Outside Sources - Reports related to such programs are presented separately under this cover. Financial Reporting Requirements - Whether financial reports and related data filed with other governmental agencies in conjunction with programs funded wholly or partially by such agencies were in agreement with or supported by the accounting records. Compliance with Legal or Other Requirements: Collateral - Pertaining to the amount and adequacy of collateral pledged by depositories to secure the deposit of public funds (see requirements for public fund deposits as specified in Oregon Revised Statutes (ORS) 295). Indebtedness - Relating to debt and the limitation on the debt amount, liquidation of debt within the prescribed period of time, and compliance with provisions of indentures or agreements, including restrictions on the use of monies available to retire indebtedness. Budget - Relating to the preparation, adoption and execution of the annual budget for the current fiscal year and the preparation and adoption of the budget for the next succeeding fiscal year (see ORS 294.305 to 294.565). Taxes on Motor Vehicle Use and Fuel and the use of a Road Fund - Pertaining to (as contained in Article IX, Section 3a of the Oregon constitution) the use of revenue from taxes on motor vehicle use and fuel and the use of a road fund (as contained in ORS 294 and 373). Insurance - Relating to insurance and fidelity bond coverage. Investments - Pertaining to the investment of public funds (see ORS Chapter 294.035 to 294.046). Public Contracts and Purchasing - Pertaining to (as contained in ORS Chapter 279) the awarding of public contracts and the construction of public improvements. The results of our tests indicate that with respect to the items tested, the City of Eugene, Oregon complied, in all material respects, with the provisions referred to above except for the following: 1. Overexpenditure of appropriations as noted in Note 3(B) of the City’s financial statements. This report is intended for the information of the Honorable Mayor, members of the City Council, the City Manager and management for the City of Eugene, and the Secretary of State, Division of Audits, of the State of Oregon. However, this report is a matter of public record and its distribution is not limited. ISLER CPA By: Paul Nielson, CPA, a member of the firm Eugene, Oregon November 13, 2009 ÙÑÊÛÎÒÓÛÒÌ ßËÜ×Ì×ÒÙ ÍÌßÒÜßÎÜÍ Government Auditing Standards Report (this page intentionally left blank) 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, as of and for the year ended June 30, 2009, which collectively comprise the City’s basic financial statements and have issued our report thereon dated November 13, 2009. 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. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the City’s financial statements that is more than inconsequential will not be prevented or detected by the City’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the City’s internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be 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. This report is intended solely for the information and use of the City of Eugene, 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: Paul Nielson, CPA, a member of the firm Eugene, Oregon November 13, 2009 OMB Circular A-133 (Single Audit) Report ________ (this page intentionally left blank) REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO 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 compliance of the City of Eugene with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2009. The City’s major federal programs are identified in the summary of auditors' 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 requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2009. 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, 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. A control deficiency in entity’s internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity’s internal control. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be 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 the City of Eugene, 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: Paul Nielson, CPA, a member of the firm Eugene. Oregon November 13, 2009 CITY OF EUGENE, OREGON Schedule of Findings and Questioned Costs June 30, 2009 Section I - Summary of Auditor’s Results Financial Statements: Type of auditor’s report issued: Unqualified Internal control over financial reporting: Material weakness(es) identified? No Significant deficiencies(s) identified that are not considered to be material weaknesses? No Noncompliance material to financial statements noted? No Federal Awards: Internal control over major programs: Material weakness(es) identified? No Significant deficiencies (s) identified that are not considered to be material weaknesses? No Type of auditor’s report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? No Identification of Major Programs: Name of Federal Program or Cluster CFDA Numbers 14.239 Home Investment Partnerships Program 14.246 Community Development Block Grants/BEDI 20.106 Airport Improvement Program 20.205 Highway Planning and Construction 97.083 Staffing for Adequate Fire and Emergency Response (SAFER) Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? Yes Section II - Financial Statement Findings None Section III - Federal Award Findings and Questioned Costs None City of Eugene, Oregon J-1 Schedule of Expenditures of Federal Awards For the fiscal year ended June 30, 2009 (amounts in dollars) Federal CFDA Federal Grantor Program TitlenumberGrant numberExpenditures U.S. Department of Commerce Grants passed through State of Oregon: Public Safety Interoperable Communications Grant Program11.55007-407$ 10,758 Total U.S. Department of Commerce10,758 U.S. Department of Housing and Urban Development Direct program: Community Development Block Grants/Entitlement Grants14.218B-07-MC-41-0001617,294 Community Development Block Grants/Entitlement Grants14.218B-08-MC-41-0001821,543 HOME Investment Partnerships Program 14.239M-07-DC-41-0200815,174 Community Development Block Grants/BEDI14.246B-05-BD-41-0029490,000 (ARRA) Homelessness Prevention and Rapid Re-Housing Program14.257FR-5307-N-012,460 Grants passed through State of Oregon: (ARRA) Neighborhood Stabilization Program14.25610896,031 Total U.S. Department of Housing and Urban Development2,752,502 U.S. Department of the Interior Direct program: Bureau of Land Management Assistance Agreement15.DAKHAA031M00173,642 Fish, Wildlife and Plant Conservation Resource Management15.2312008-0056-0032,346 Total U.S. Department of the Interior175,988 U.S. Department of Justice Direct program: Bulletproof Vest Partnership Program16.607n/a13,503 Grants passed through Lane County Oregon: Edward Byrne Memorial Justice Assistance Grant Program16.7382007-DJ-BX-107634,330 Edward Byrne Memorial Justice Assistance Grant Program16.7382008-DJ-BX-030115,297 Total U.S. Department of Justice63,130 U.S. Department of Transportation Direct program: Airport Improvement Program20.1063-41-0018-3535,224 Airport Improvement Program20.1063-41-0018-3647,842 Airport Improvement Program20.1063-41-0018-37120,440 Airport Improvement Program20.1063-41-0018-41456,609 Airport Improvement Program20.1063-41-0018-42491,423 Grants passed through State of Oregon: (ARRA) Highway Planning and Construction20.2052556547 (ARRA) Highway Planning and Construction20.205255668,506 (ARRA) Highway Planning and Construction20.205256591,745 Highway Planning and Construction20.2052329328,302 Highway Planning and Construction20.2052335959,215 Highway Planning and Construction20.2052342220,828 Highway Planning and Construction20.20523750222,120 Highway Planning and Construction20.205245161,367,000 Highway Planning and Construction20.2052530258,764 continued J-1, continued City of Eugene, Oregon Schedule of Expenditures of Federal Awards For the fiscal year ended June 30, 2009 (amounts in dollars) Federal CFDA Federal Grantor Program TitlenumberGrant numberExpenditures U.S. Department of Transportation, continued Grants passed through State of Oregon, continued: Recreational Trails Program20.219RTP 06-12610 State and Community Highway Safety20.600SC-08-35-12-0025,000 Grants passed through Lane Council of Governments: Highway Planning and Construction20.2052009-00205120,924 Grants passed through Alliance for Community Traffic Safety: State and Community Highway Safety20.600n/a5,600 Grants passed through Oregon Association Chiefs of Police: State and Community Highway Safety20.6002009-0321418,810 Minimum Penalties for Repeat Offenders for Driving While Intoxicated20.6082007-20083,180 Minimum Penalties for Repeat Offenders for Driving While Intoxicated20.6082008-200911,090 Total U.S. Department of Transportation3,083,279 National Endowment for the Arts Direct program: Promotion of the Arts Grants to Organizations and Individuals45.02408-5448-718320,000 Grants passed through Western States Arts Foundation: Promotion of the Arts Partnership Agreements45.025n/a3,375 Total National Endowment for the Arts23,375 U.S. Environmental Protection Agency Direct program: Solid Waste Management Assistance Grants66.808X1-96030401-04,234 Total U.S. Environmental Protection Agency4,234 U.S. Department of Education Grants passed through Eugene School District 4J: Twenty-First Century Community Learning Centers84.287673379,138 Twenty-First Century Community Learning Centers84.2871692376,715 Total U.S. Department of Education155,853 U.S. Department of Homeland Security Direct program: Staffing for Adequate Fire and Emergency Response (SAFER)97.083EMW-2005-FF-00527164,358 Grants passed through State of Oregon: Citizen Corps97.05308-1042,196 State Homeland Security Program (SHSP)97.07306-21711,166 State Homeland Security Program (SHSP)97.07306-23234,161 State Homeland Security Program (SHSP)97.07307-21614,244 State Homeland Security Program (SHSP)97.07308-220572 Law Enforcement Terrorism Prevention Program (LETPP)97.07406-15932,879 Grants passed through Oregon Association of Hospitals and Health Systems: National Bioterrorism Hospital Preparedness Program93.889n/a38,499 Total U.S. Department of Homeland Security298,075 Total Federal Financial Assistance$ 6,567,194 CITY OF EUGENE, OREGON Notes to Schedule of Expenditures of Federal Awards June 30, 2009 (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, 2009. 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. December 8, 2009 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, 2009, and have issued our report thereon dated November 13, 2009. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under U.S. Generally Accepted Auditing Standards As stated in our engagement letter dated September 17, 2009, 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. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our engagement letter. Qualitative Aspects of Accounting Practices 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. No new accounting policies were adopted and the application of existing policies was not changed during the year. 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. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was the determination of depreciation on capital assets. Difficulties Encountered in Performing the Audit 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. Disagreements with Management 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. Management Representations We have requested certain representations from management that are included in the management representation letter dated November 13, 2009. Management Consultations with Other Independent Accountants 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. Other Audit Findings or Issues 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, ISLER CPA By Paul Nielson, a member of the firm