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Item 3C_ Resolution on FY11 CAFR
EUGECNE ITCY OUNCIL AGENIDASTEM UMMARY Action AdoptionofResolution5050AcknowledgingReceiptoftheCityofEugene Comprehensive AnnualFinancial ReportfortheFiscalYearEndedJune30 2011 MeetingDate January9 2012 AgendaItemNumber 3C Department CentralServices StaffContact FionanCronin wwweugene orgov ContactTelephoneNumber 5416825394 ISSUESTATEMENT ThisisaresolutionacknowledgingreceiptoftheCityo fEugene Comprehensive AnnualFinancial Report CAFR forthefiscalyearendedJune30 2011 Thisresolutiondemonstratescompliancewith ORS2974652 whichrequiresthatacopyoftheCitysCAFR containingasignedexpression of opinion befurnishedtoeach memberofthegoverningbody BACKGROUND UnderOregonMunicipalAuditLaw theCityisrequiredeachfiscalyeartocontractwithan authorized accountingfirmfortheauditofitsaccountsandfisca laffairs ORS297425 ThefirmofIslerCPA auditors hascompletedthe auditofthe CityofEugenesfinancialstatementsforthe fiscalyearended June30 2011 andissuedanunqualifiedopiniononthebasicfinancialstatements Theauditorsconduct theauditoftheCitysbasicfinancialstatementsinaccordancewithgenerally acceptedauditingstandardsandtheMinimumStandards forAuditsofOregonMunicipalCorporations Inaddition asarecipient offederalgrants theCityissubjecttothe FederalSingleAuditActof1984 whichrequiresthatthe auditbeconducted inaccordancewithGovernmentAuditingStandards issued bytheComptrollerGeneraloftheUni tedStatesandOfficeofManagementandBudget OMB Circular A133 AuditsofStates LocalGovernments andNonProfitOrganizations ThesestandardsandOMB CircularA133requirethattheauditorsplanandperformtheaudittoobta inreasonableassuranceabout whetherthebasicfinancialstatementsarefreeofmaterialmisstatementandwhethertheCitycomplied withthelaws andregulationspertainingtofederally fundedprograms Inadditiontostateand federal requirements the Cityhasacontractualobligationinconnectionwithitsdebtissuanceswhich requires thattheCityissueannualauditedfinancial statements Managementisresponsiblefortheinformationcontaine din andthepreparationof theCitysfinancial statements Toeffectivelyfulfillthis responsibilityandtocontainthecostofauditorservices Citystaff devotessignificantefforttotheclosing ofaccountingrecords thepreparationofschedulesandaudit workpapers andtheproductionoftheCAFR Thisalsoresultsinstaffexpertisebeingdevelopedon specificfinancialandserviceissuesthatcanthenbeusedtoassistdepartmentsandotherper tinent parties SCMO2012CouncilAgendasM120109S1201093Cdoc ThekeypagesoftheCAFRtoreviewarepages1112andpages151152 wheretwooftheauditors reportsarefound Inthefirstreport the auditorshaveissuedanunqualifiedopinion alsoknownasa cleanopinion ontheCitysbasicfinan cialstatements indicatingthattheCityhaspreparedthese statementsinconformity withgenerallyacceptedaccountingprinciples GAAP GAAPforstateand localgovernmentsispromulgatedbytheGovernmentalAccountingStan dardsBoard GASB toensure consistencyinaccountingandcomparabilityinfinancialreportingamongstate andlocalgovernments Acleanopinionisafundamentalfinancialgoalforeverygovernment asitrepresentsthe highestlevel ofopinionagovernmentcanreceivefromitsindependentauditors Acleanopinionisanimportant indicatorofsoundfinancialmanagementandcreditworthinesstothe citizens othergovernmental jurisdictions stateandfederal creditratingagencies investmentbankers bondholders andother privatesectorentities Forpolicymakers acleanopinionmeansthattheinformationintheCAFRis accurateandreliable Inthe secondreport the auditorsaddressthe CityscompliancewithapplicableprovisionsofOregon RevisedStatutesincluding requirementsrelatedtodebt depositofpublicfunds preparationand adoptionofthebudget accountingrecordsandrelatedinternalcontrolstructure etc Inaddition the auditorsalsoreportiftheCityhadanysignificantinternalcontrolweaknesses Theauditors notedthat theCitycompliedwithalllaws withoneexception theCityexceededitslegalbudget page48 intwo funds TheSpecial AssessmentManagementSpecialRevenueFundoverspent itsdepartmental appropriationby 57528 or30 Thisoccurredduetoincreasedstree tsubsidiesforqualifying propertyownersforthe Crestdriveassessment asaresultofallowingadditionalopportunities forpropertyownerstoqualifyandchangesinthecriteriatoallowmoreproperties toreceive subsidies TheParkingServicesEnterpriseFundoverspentitsPlanningandDevelopmentdepartmental appropriationby 116152 or36 Aportionoftheoverexpenditurewasduetoaddingmore neighborhoodparkingmitigationchange sintheneighborhoodsimpactedbythenewUniversity ofOregonarena Theremainderwasduetounanticipatedgaragesecuritycostsduetoadelayin theimplementationofanewdowntownpolicepatrol unit TheParkingServicesEnterp riseFundalsoexceededitsPublicWorksappropriationsby 9637 or13 becauseofhigherthananticipatedcoststomakeparkingdistrictchangesforfree downtownparkingandchangesforthenewparkingnearMacCourtandtheUOArenad istrict ORSrequirethatall overexpendituresbebroughttotheattentionofthegoverningbody Becausethere isnodollarthreshold itiscommonforlocalgovernmentstohaveoccasionalover expenditures The particularover expendituresforfiscalyear2011wereuniquecircumstances thatarenotlikelytobe repeated Twoadditionalreports beginningonpage155 specificallyaddresscompliancewithFederallaws regulations contractsandgrants andindicatethattheauditorsfoundnomaterialinstancesoftheCitys noncompliancewiththeserequirements norwerethereanyfindingsorquestionedcostsnotedin relationtoFederalawardsm adetotheCity Professionalrequirementsmandateauditorsprovideareporttothegoverningbodythataddressesany concernsorfindingstheyencountered insuchauditrelatedissuesassignificantauditfindings accountingestimatesanddisagreementswithmanagement IslerCPAsmemoaddressing theseissues SCMO2012CouncilAgendasM120109S1201093Cdoc forfiscalyear 2011isattachedanditstates thatthere werenoconcernsthatrequiredcommunicationto thecouncil TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada GFOA awardeda CertificateofAchievementforExcellence inFinancialReportingtotheCityofEugeneforits Comprehensive AnnualFinancialReport CAFR forthe fiscalyearendedJune30 2010 Thiswas the 35th consecutiveyearthattheCit yhasachievedthisprestigiousaward Inordertobeawardeda CertificateofAchievement agovernmentmustpublishaneasilyreadableandefficientlyorganized CAFR whichsatisfiesbothgenerallyacceptedaccountingprinciple sandapplicablelegalrequirements Inaddition therequirementsforthe certificateprovidemuchofthe informationneededfortheCitys creditassessments RELATEDCITYPOLICIES PolicyB1oftheCitysFinancialManagementGo alsandPoliciesstatesthat TheCitywillmaintain an accountingandfinancialreportingsystemthatallows reportinginconformancewithGenerally AcceptedAccountingPrinciplesandOregonLocal BudgetLawandwillissueaCo mprehensiveAnnual FinancialReporteachfiscalyear This actionsignifiesformalcompletionofthisprocessforthe fiscal yearendedJune30 2011 anddemonstratescouncilscompliancewith thepolicy COUNCILOPTIONS None CITYMANAGERSRECOMMENDATION TheCityManagerrecommendsadoptionoftheresolution SUGGESTEDMOTION MovetoadoptResolution 5050acknowledgingreceipt oftheComprehensive AnnualFinancialReport CAFR fortheCityofEugene forthefiscalyearendedJune30 2011 ATTACHMENTS A Resolution B Copyofthe2011ComprehensiveAnnualFinancialReport C Copy oftheIslerCPAmemo FORMOREINFORMATION StaffContact FionanCronin Telephone 5416825394 StaffEMail finnjcronin@cieugeneorus SCMO2012CouncilAgendasM120109S1201093Cdoc ATTACHMENTA RESOLUTIONNO ARESOLUTIONACKNOWLEDGING THERECEIPTOFTHE COMPREHENSIVEANNUALFINANCIALREPORTOFTHE CITYOF EUGENEFORTHEFISCALYEARENDED JUNE30 2011 TheCityCounciloftheCityofEugenefindsthat ThefirmofIslerCPAhascompletedtheauditofthefinancialstatementsoftheCityofEugenefor thefiscalyearendedJune30 2011 asrequiredbyORS297425and pursuanttoORS297465 reportedto theMayorandCityCouncil onitsfindings NOW THEREFORE BEITRESOLVEDbytheCityCounciloftheCityofEugene aMunicipalCorporationoftheStateof Oregon asfollows Section1 That theCouncilherebyacknowledgesthatithasreceivedtheComprehensiv eAnnual Financial ReportforthefiscalyearendedJune30 2011 Theforegoingresolutionadoptedthe9thdayofJanuary 2012 CityRecorder COMPREHENSIVEANNUALFINANCIALREPORT CITYOFEUGENE OREGON FISCALYEARENDEDJUNE30 2011 REPORTPREPAREDBYTHECITY FINANCEDIVISION INTRODUCTORYSECTION CITYOFEUGENE OREGON ComprehensiveAnnualFinancialReport YearendedJune30 2011 TableofContents Exhibit Pages INTRODUCTORYSECTION LetterofTransmittal 1 6 GFOACertificateofAchievement 7 OrganizationalChar t 8 PrincipalCityOfficials 9 FINANCIALSECTION IndependentAuditors Report 11 12 ManagementsDiscussionandAnalysis 13 22 BasicFinancialStatements Government wideFinancialStatements StatementofNetAssets 1 23 StatementofActivities 2 24 FundFinancialStatements BalanceSheet GovernmentalFunds 3 25 StatementofRevenues Expenditures and ChangesinFundBalances GovernmentalFunds 4 26 ReconciliationoftheStatem entofRevenues Expenditures andChangesinFundBalancesofGovernmentalFunds totheStatementofActivities 5 27 StatementofFundNetAssets ProprietaryFunds 6 28 29 StatementofRevenues Expenses and ChangesinFundNetAssets ProprietaryFunds 7 31 StatementofCashFlows ProprietaryFunds 8 32 33 NotestoBasicFinancialStatements 35 75 i CITYOFEUGENE OREGON ComprehensiveAnnualFinancialReport TableofContents continued Schedule Pages FINANCIALSECTION CONTINUED RequiredSupplementaryInformation ScheduleofRevenues Expenditures andChangesin FundBalance BudgetandActual GeneralFund A177 CommunityDevelopmentFund A278 NotestoRequiredSupplementaryInformation 79 80 OtherSupplementaryInformation NonmajorGovernmentalFundsCombiningS tatements CombiningBalanceSheet B181 CombiningStatementofRevenues Expenditures and ChangesinFundBalances B282 SpecialRevenueFunds CombiningBalanceSheet NonmajorSpecialRevenueFunds C183 CombiningStatementofRevenues Expenditures and ChangesinFundBalances NonmajorSpecialRevenueFundsC284 ScheduleofRevenues Expenditures andChanges in FundBalance BudgetandActual ConstructionandRentalHous ingFund C385 LibraryLocalOptionLevyFund C486 Library Parks andRecreationFund C587 PublicSafetyAnsweringPointFund C688 RoadFund C789 SolidWasteandRecyclingFund C890 SpecialAssessmentManagementFund C991 TelecomRegistrationandLicensingFund C1092 ii CITYOFEUGENE OREGON ComprehensiveAnnualFinancialReport TableofContents continued Schedule Pages FINANCIALSECTION CONTINUED OtherSupplementaryInformation continued SpecialRevenueFunds continued ScheduleofRevenues Expenditures andChanges in FundBalance BudgetandActual continued UrbanRenewalAgencyGeneralFund C11 93 UrbanRenewalAgencyRiverfrontFund C12 94 DebtServiceFunds CombiningBalanceSheet NonmajorDebtServiceFundsD1 95 CombiningStatementofRevenues Expenditures and ChangesinFundBalances NonmajorDebtServiceFundsD2 96 ScheduleofRevenues Expenditures andChanges in FundBalance BudgetandActual GeneralObligationDebtServiceFund D3 97 LibraryDebtServiceFund D4 98 SpecialAssessmentBondDebtServiceFund D5 99 UrbanRenewalAgencyDebtServiceFund D6 100 CapitalProjectsFunds CombiningBalanceSheet NonmajorCapitalProjectsFunds E1 101 CombiningStatementofRevenues Expenditures and ChangesinFundBalances NonmajorCapitalProjectsFundsE2 102 ScheduleofRevenues Expenditures andChanges in FundBalance BudgetandActual GeneralCapitalProjectsFund E3 103 SpecialAssessmentCapitalProjectsFund E4 104 SystemsDevelopmentCapitalProjectsFund E5 105 iii CITYOFEUGENE OREGON ComprehensiveAnnualFinancialReport TableofContents continued Schedule Pages FINANCIALSECTION CONTINUED OtherSupplementaryInformation continued CapitalProjectsFunds continued ScheduleofRevenues Expenditures andChanges in FundBalance BudgetandActual continued TransportationCapitalProjectsFund E6106 UrbanRenewalAgencyCapitalProjectsFund E7107 UrbanRenewalAgencyRiv erfrontCapitalProjectsFund E8108 EnterpriseFunds ScheduleofRevenues Expenses andChangesin FundNetAssets BudgetandActual AmbulanceTransportFund F1109 MunicipalAirportFund F2110 ParkingServicesFund F3111 StormwaterUtilityFund F4112 WastewaterUtilityFund F5113 InternalServiceFunds CombiningStatementofNetAssets G1115 CombiningStatementofRevenues Expenses and ChangesinFundNetAssets G2117 CombiningStatementofCashFlows G3118 119 ScheduleofRevenues Expenses andChangesin FundNetAssets BudgetandActual FacilitiesServicesFund G4120 FleetServicesFund G5121 InformationSystemsandServices Fund G6122 ProfessionalServicesFund G7123 RiskandBenefitsFund G8124 iv CITYOFEUGENE OREGON ComprehensiveAnnualFinancialReport TableofContents continued Schedule Pages FINANCIALSECTION CONTINUED OtherSupplementarySchedules ScheduleofPropertyTaxTransactions H1125 ScheduleofBondedDebtTransactions H2126 127 STATISTICALTABLESSECTION GovernmentwideInformation NetAssetsbyComponent I1129 ChangesinNetAssets I2130 131 FundInformation FundBalances GovernmentalFunds I3133 ChangesinFundBalances GovernmentalFunds I4134 135 TaxableAssessedValueandActualValueofProperty I5136 DirectandOverlappingPropertyTaxRates I6137 PropertyTaxLeviesandCollections I7138 TenPrincipalPropertyTaxpayers I8139 RatioofOutstandingDebtbyType I9140 RatioofGeneralBondedDebtOutstanding I10141 DirectandOverlappingGovernmentalActivitiesDebt I11142 LegalDebtMargin GeneralObligationBondedDebt I12143 DemographicandEconomicStatistics I13144 TenPrincipalEmployers I14145 CityGovernmentEmployeesbyFunctionProgram I15146 v CITYOFEUGENE OREGON ComprehensiveAnnualFinancialReport TableofContents continued Schedule Pages STATISTICALTABLESSECTION CONTINUED FundInformation continued OperatingIndicatorsbyFunctionProgram I16147 CapitalAssetStatisticsbyFunctionProgram I17148 AUDITCOMMENTSANDGOVERNMENTAUDITINGSTANDARDSSECTIONS AuditComments Independent Auditors ReportRequiredbyOregon StateRegulations 151 152 GovernmentAuditingStandards GovernmentAuditingStandardsReport ReportonInternalControlOverFinancialReportingandon ComplianceandOtherMattersBasedonanAuditof FinancialStatementsPerformedinAccordance with GovernmentAuditingStandards 155 156 OMBCircularA133 SingleAudit Report ReportonCompliancewithRequirementsThatCould HaveaDirectandMaterialEffect onEachMajor ProgramandonInternalControlOverComplia nce InAccordanceWithOMBCircularA133 159 160 ScheduleofFindingsandQuestionedCosts 161 ScheduleofExpendituresofFederalAwards J1162 164 NotestoScheduleofExpendituresofFederalAwards 165 vi CentralServices FinanceDivision CityofEugene th 100W10Avenue Suite400 Eugene Oregon97401 541 6825394 541 6825802FAX December15 2011wwweugeneorgov CitizensofEugene TheHonorableKittyPiercy Mayor MembersoftheCityCouncil JonRRuiz CityManager ItismypleasuretosubmittoyoutheComprehensiveAnnualFinancialReportoftheCityofEugene Oregon for thefiscalyearendedJune30 2011 Localordinancesandstatest atutesrequirethattheCityofEugeneissueareportonitsfinancialpositionand activitywithinsixmonthsofthecloseofeachfiscalyear Inaddition thisreportmustbeauditedinaccordance withgenerallyacceptedauditingsta ndardsbyanindependentfirmofcertifiedpublicaccountants ThisreportconsistsofmanagementsrepresentationsconcerningthefinancesoftheCity Consequently responsibilityfortheaccuracyofthedataandthecompleteness andfairnessofthepresentation includingall disclosures restswithmanagement Toprovideareasonablebasisformakingtheserepresentations managementhasestablishedaninternalcontrolstructuredesignedtosafeguardC ityassetsagainstloss theft ormisappropriation andtoensurethereliabilityoffinancialrecordsforpreparingfinancialstatementsin conformitywithgenerallyacceptedaccountingprinciples GAAP Theinternalcontrols tructurehasbeen designedtoprovidereasonable butnotabsolute assurancethat theseobjectivesarebeingmet Theconceptof reasonableassurancerecognizes 1 thecostofthecontrolstructureshouldnotexceedthebenefits likelytobe derived and 2 theevaluationofcostandbenefitsrequireestimatesandjudgmentsbymanagement We believethattheCitysinternalcontrolstructureadequatelysafeguardsassetsandprovidesreasonableassurance ofproperrecordingoffinancialtransactions Tothe bestofourknowledgeandbelief theencloseddatais presentedaccurately inallmaterialrespects alongwithdisclosuresnecessarytoprovidethereaderwitha reasonableunderstandingoftheCitysfinancialaffairs TheCitysfinancialstatementswereauditedbyIslerCPA afirmof licensedcertifiedpublicaccountants The goaloftheindependentauditwastoprovidereasonable assurancethatthefinancialstatementsoftheCityfor thefiscalyearendedJune30 2011arefreeofmaterialmisstatements Theindependentauditinvolved examining onatestbasis evidencesupportingtheamountsanddisclosur esinthefinancialstatements assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement andevaluatingthe overallfinancial statementpresentation Theindependentauditorconcluded basedupontheaudit thatthere wasareasonablebasisforrenderinganunqualifiedopinionthattheCitysbasicfinancialstatementsforthefiscal yearendedJune30 2011 arefairlypresented inallmaterialrespects inconformitywithGAAP The independentauditors reportontheBasicFinancialStatementsisincludedintheFinancialSectionofthisreport Inadditiontomeetingtherequirementssetforthabove theindependentauditalsowasd esignedtomeetthe specialneedsoffederalgrantoragenciesasprovidedforintheFederal SingleAuditActandthe Officeof ManagementandBudgetsOMB CircularA133 Thesestandardsrequiretheindependentauditornotonly reportonthefairpresentationofthebasicfinancialstatements butalsoontheauditedgovernmentsinternal controlsandcompliancewithlegalrequirements withspecialemphasisoninternalcontrolsandlegal requirementsinvolvingtheadministrationoffederalawards Theresultsoftheindependentauditforthefiscal yearendedJune30 2011indicatednoinstancesofmaterialweaknessesintheinternalcontrolstructureor significantviolationsofapplicablelawsandregulations Theindependentauditors reportsrelatedspecificallyto theSingleAuditandOMBCircularA133areincludedintheGovernmentAuditingStandardsSection 1 GAAPrequiresthatmanagementprovideanarrativeintroduction overview andanalysistoaccompanytheBasic FinancialStatementsintheformofManagementsDiscussionandAnalysis MD A Thisletteroftransmittalis designedtocomplementtheMD Aandshouldbereadinconjunctionwithit TheCitysMD Acanbefound immediatelyfollowingtheindependentauditors reportonthebasicfinancialstatements CityOverview Eugenewasincorporatedi n1862 andthecitizensadoptedtheCouncilManagerformofgovernmentin1944 TheCityCouncildevelopslegislationandpoliciestodirecttheCity buthiresaprofessionalmanager theCity Manager tooverseeCityofEugeneperson nelandoperationsTheMayoriselectedatlargetoafouryearterm andactsastheformalrepresentativeoftheCityandpresidesoverCouncilmeetings TheCityCouncilhaseight memberselectedbywardtofouryearterms withonehalfofthecouncilelectedeverytwoyears Empoweredby statestatute theCityleviesapropertytaxon realandpersonalpropertylocatedwithinitsboundaries AsofJuly1 2010 157845peopleresidedinEugene makingitOregonssecondlargestcity Cityboundaries encompassed44squaremilesinLaneCounty TheWillametteRiverrunsthroughtheheartoftheCityandthe McKenzieRiverjoinstheWillamettetothenorthoftown Eugeneisthecenterofgovernmentandeducation includingCounty Stateand Federalgovernmentagencies andishometotheUniversityofOregon Overthe lasttenyears Eugenespopulationhasincreasedanaverageof13 annually TheCityprovidesafullrangeofmunicipalservices Theseservicesinclude police fire emergencymedical services municipalcourt communityplanninganddevelopment parks library recreationalandculturalac tivities airport wastewatertreatment stormwatermanagement generalpublicworks andadministration alongwith otherfunctionsassociatedwithafullservicecity Theseservicesareprovidedprimarilytocitizenswholiv ewithin thecorporatelimits However manyoftheservicesandfacilitiesoperatedbytheCityareprovidedforand financedbyregionalserviceareaslargerthantheCity Forfinancialreportingpurposes theCityincludesallfun dssubjecttoappropriationbytheCityCouncil In addition theCityincludesallgovernmentalorganizationsandactivitiesforwhichtheCityCouncilisfinancially accountable Therefore thefinancialstatementsoftheUrban RenewalAgencyoftheCityofEugene although legallyseparate havebeenblendedwiththoseoftheCitybyincludingthemintheappropriatestatementsand schedulesinthisreport Forfinancialplanningandcontrol theCitypreparesandadoptsanannualbudgetinaccordancewithOregon RevisedStatutesChapters294305through294565 BudgetinginOregonisajointeffortbetweenthepeople affectedbythebudgetandtheappointedandelectedoff icialsresponsibleforprovidingtheservices Electedor appointedofficialsdeterminetheallocationofresourcestotheservicesystem TheStateofOregonDepartment ofRevenuecheckstoseethatthebudgetispreparedaccordin gtolaw Citizensinvolvedwithbudget preparationseethat programstheywantandneedareadequatelyfunded Togivethepublicampleopportunitytoparticipateinthebudgetingprocess localbudgetlawrequiresthata BudgetOfficerbeappointedandaBudgetCommitteebe formed TheBudgetOfficerdrawstogethernecessary informationandpreparesthefirstdraftofthebudget TheBudgetCommitteethenreviewsandrevisesthe proposedbudgetbeforemakingarecommendationtotheCityCouncil Noticesarepublished budgetsaremade availableforreview andatleasttwopublichearingsareheld onemeetingisheldbeforetheBudget Committee whichiscomposedoftheeightCityCouncilorsandeightcitizenmembers and onemeetingisheld beforetheCityCouncil Theserequirementsencouragepublicparticipationinthebudgetmakingprocessand givepublicexposuretobu dgetedprogramsandfiscalpoliciesbeforethegoverningbodyofthemunicipal corporationadoptsthebudget Thelegallyadoptedbudgetisatthefundanddepartmentallevelforcurrentexpenditures withseparate appropriationsestablishedforcapitalprojects debtservice interfundtransfers interfundloans intergovernmentalexpenditures andmiscellaneousfiscaltransactions Budgetarycontrolisinternally administeredatamorerestrictivelevel Budgettoactualcomparisonsareprovidedinthisreportforeach individualfundforwhichanappropriatedannualbudgethasbeenadopted FortheGeneralFundand CommunityDevelopmentFun d thiscomparisonispresentedasrequiredsupplementaryinformationinthis report Forall otherfunds thiscomparisonispresentedasothersupplementaryinformation 2 LocalEconomy EugeneislocatedinwesternOregon inthesouthernWillametteValley incloseproximitytothePacificOcean andtheCascadeMountainRange Citizensandvisitorsenjoythemildclimate recreationandfitness opportunities andthediverseculturaleventsithastooffer Interstate5connectsEugenetothePortland metropolitanareaandWashingtonstatetothenorth andCaliforniatothesouth Statehighwaysprovideaccess easttotheCascadeMountainsandtherecreationalopportunitiesofeasternOregon andtothepicturesque coastaltowns stateparksandpublicbeachestothewest Eugenesmunicipalairportisservicedbyfourair carriers linkingEugenetoSeattle Portland Denver SaltLakeCity PhoenixMesa LasVegas LosAngeles OaklandandSanFrancisco EugeneisthelargestcityinLaneCountyandthesecondlargestcityinOregon representing45 ofthe countys and4 ofthestatespopulation Eugeneseconomytypicallyfollowsthetrendsofthestateand nationaleconomies TheunemploymentrateforEugenerosesharplyasaresultoftherecession froman averageannualrateof57 in2008toahighof102 in2009 primarilyduetojoblossesinconstruction manufacturing retail andprofessionalservices Eugenes2010unemployment ratedroppedto97 stillhigh byhistoricstandardsbutlowerthantheunemploymentrateforLaneCountyasawholeorfortheStateof Oregon AnnualAverageUnemployment AsaPercentofLaborForce 12 10 864 2001200220032004200520062007200820092010 EugeneLaneCountyOregonUS ThetwopillarsthathavehistoricallyprovidedrelativestabilityinEugeneseconomyarethelargepublicsector employmentbaseandpopulationinmigration Inprioryears theinfluxofnewresidentsh ashelpedtheeconomy diversifyawayfromlumberandwoodproductsmanufacturing Californiahasbeenthelargestsourceofnew residentstotheareaduetoEugenesproximitytothatstate localenvironmentalandculturalamenities and relativelylowercostofliving However Eugenespopulationgrowthhassloweddownsignificantlyduetothe recentrecession County stateandfederalgovernmentagencies arecenteredinEugene aswellastheUniversityofO regonand LaneCommunityCollege Between2001and2009employmentinthepublicsectorincreasedby12 largely duetogrowthoftheUniversityofOregon In2010 theUniversityofOregonhadarecordenrollmentof23389 andprovidedapproximately4000localjobs TheUniversityisamajorcontributortoOregonseconomy withan estimatedeconomicimpactof 197billion TheUniversityofOregonisrankedbytheCarnegieFoundationtobe inthetopcategoryamongUS researchinstitutions 3 Asthelocaleconomyhasdiversifiedawayfromdependenceonresourcebasedmanufacturing theEugene SpringfieldareahasbecomeanincreasinglyimportantcenterforhealthservicesinWesternOregon Between 2001and2009 employmentinthehealthcareservicessectorgrewby24 SomeofthelocaljoblosseshavebeenoffsetbylargeconstructionprojectsincludingtheUniversityofOregons new405000squarefoot 12500seatMathewKnightAr ena This 2000millionprojectwascompletedin February 2011 TheUniversityofOregoncampusisalsothesiteforanotherlargeprojectthatisunderway a 100000squarefootsciencebuildingvaluedat 650million Thisbuildingwillhousebrainresearch cognitive science neuroscience greenmaterialsscience nanotechnologyresearch andsolartechnologyresearch The EastCampusResidenceHallisa 715millionprojectthatbrokegrou ndinJuly2010andisexpectedtoprovide housingfor450studentsandacademicamenitiesbythefallof2012 SeveralpublicandprivateconstructionprojectsareinprogressindowntownEugene Theseincludeanew 55 milliondowntowncampusforLaneCommunityCollege locatedacrossfromtheDowntownLibrary Thisproject willincorporatefivefloorsofstudent housingalongwitha90000squarefooteducationbuilding andisexpected tobecompletedbyNovember2012 Inaddition amajorreconstructionprojectistheBroadwayCommerce CenteratBroadwayandWillametteStreets andgroundhasbeenbrokenbyBennettDevelopmentforanewfive storycommercialbuild ingonanadjacentsite AlloftheseprojectshavebenefitedfrompartnershipswiththeCity ofEugeneandtheUrbanRenewalAgency NewdowntownhotelaccommodationswillbeprovidedbytheInnat 5thStreetMarket whichiscurrentlyunderconstruction Theseprojectswillcontinuetopartiallyoffsetdecreased demandforresidentialandcommercialconstructionduetoaweakeningrealestatemarketandwillprovide new permanentemploymen topportunitieswhencompleted RailandairconnectionsthroughEugenealsocontinuetobenefitfromnewinvestments In2010 the main runwayattheEugeneAirportwasrepaved Also theAirporthasreceiveda 500000federalgrant tohelpstart dailynonstopflightstoSanJose California TheUnionPacificRailroadwillspendabout 335million toimprove 75milesofitsraillinefromOakridgethroughEugeneandontoHarrisburg aswellasitsrailyardinEuge ne The US DepartmentofTransportationwillprovidea 135milliongranttocompleterepairstotheCoosBayrailline whichprovidesfreightservicesbetweentheCityofCoosBayandEugene LongtermFinancialPlanning TheCityofEugenerecognizestheimportanceofstrategiclongtermfinancialplanning Eachyear forecastsare preparedtoestimatethefinancialhealthofeachmajorfundoverthenextsixyears TheCityalsoutilizesthree additionalimportantplanningdocuments theCapitalImprovementProgram theMultiYearFinancialPlanand theDebtAffordabilityStudy InFebruaryof2011 theCityCouncilapprovedtheCapital ImprovementProgramforFY12toF Y17 TheCapital ImprovementProgram CIP forecaststheCityscapitalneedsoverasixyearperiodbasedonvariouslongrange plans goals andpolicies TheunderlyingstrategyoftheCIPistoplanforlandacquisition construction and majormaintenanceofpublicfacilitiesnecessaryforthesafeandefficientmanagementofCityassets Acritical elementofabalancedCIPistheprovisionoffundstopreserveorenhanceexistingfacilitiesandpr ovidenew assetswhichwillhelptheCityrespondtochangingserviceneedsandcommunitygrowth Theprogramservesas thebasisforthecapitalbudgetandisupdatedeverytwoyears TheFY12 17CIPtotalsabout 1523millionin projectswithfundingsecuredoridentifiedfromavarietyofsources TransportationisthelargestCIPcategorywithatotalallocationof 469million ofwhich 416millionis dedicatedtowardspavementpreservation andanother 53millionforothertransportationprojects Airport capitalimprovements includingnewairportfirerescuestation terminalbuildingexpansionandpreservationand maintenanceprojects willaccountfor 468million About 255millionforpublicbuildingswillprimarilybe investedinpreservationandcapitalmaintenanceofexistingCityfacilities Improvementstopreserveand rehabilitatetheCityswastewatersystemwillbefu ndedwith 131million UndertheCitysstormwaterprogram drywelldecommissioning streamcorridoracquisition bankstabilizationandstreamrestoration andsystem upgradesandcapacityenhancementsaretobefundedat 135million Approximately 66millioninanticipated capitalspendingwillbeforparksandopenspaceprojects InApril2011 theCitysExecutiveTeamreviewedandapprovedtheMultiYearFinancialPlan MYFP forFY12 toFY17 TheMYFPwassubsequentlypresentedtotheMayorandtheCitysBudgetCommittee TheMultiYear FinancialPlanisanannualcompilationofsignificantbutunfundedchallengesandopportunitiesthatarelikelyto 4 occuroverthenextsix years ItservesasastrategicplanningtoolandhelpsaddressCouncilsgoalfor Fair Stable andAdequateResources ItprovidesanimportantmeanstoimprovetheCitysabilitytolinktheCouncil goalsprocess theCapitalImprovementProgram theGeneralFundSixyearFinancialForecast otherprojector servicespecificstrategicplans andtheannualbudgetprocess Awiderangeofunfundedneeds challengesand opportunities areincludedintheMYFP includingseveralhighpriorityitems TheMYFPincludesGeneralFund andothercurrentservicefundingshortfalls preservationandmaintenanceofexistingCityassetsandfacilities andimplementationofadoptedplansorpolicies Theplanalsoidentifiesimportantemergingissuesthatmay haveafinancialimpactontheCity TheFY1217MYFPidentifiedatotalofabout 2810millioninunfundedchallengesandopportunitiesthatmay occurwithinthenextsixyears Ofthisamount 1341millionisforthefollowinghighprior ityitems General Fundshortfall AmbulanceTransportFund shortfall ParkingFundstabilization ParksandOpenSpaceoperationsandmaintenance DeferredmaintenanceofCityfacilities EchoHollowSheldonPoolpreservatio n PavementPreservationbacklog EnvisionEugeneimplementation and Additional jailbeds AllofthesehighpriorityitemswouldneedtobefundedonanongoingbasisinorderfortheCitysbudgetto becomeatrulysustainable ratherthanmerelystable inthelongrun Withthesignificantamountoffuturecapitalprojects aswellasidentifiedunfundedneeds theCityalso recognizestheneedtobethoughtfulanddeliberateinplanningfuturedebtlevels Asaresult theCityhas developedaDebtAffordabilityStudythatisupdatedeverytwoyearsinconjunctionwiththeCIPupdate This studylooksatnotjustthelegallyallowablelevelofdebt butthelevelofdebtthatthecommunitywo uldconsider affordable giventheabilityofthecommunitytopayforthatdebt TheBudgetCommitteeadoptedadebtpolicy limitofnetdirectdebtofnomorethan1 ofrealmarketvalueofproperty TheDebtAffordabilityStudy measuresfuturedebtplansagainstthisdebtpolicylimittodeterminewhetherthoseplansareconsidered affordableandthoseresultsareincludedintheCIP TheCitysnetdirectdebttorealmarketvalueisprojectedto be017 bytheendofFY12 CityCouncilVisionandGoals TheCityCounciladoptsgoals thatprovidemajorpolicydirectionforbudgetallocationsandservicedelivery The CityCounciladoptedthefollowingvisionandgoalsinspring of2009 CITYCOUNCILVISION Valueallpeople encouragingrespectandappreciationfordiversity equity justice andsocialwellbeing Werecognizeandappreciateourdifferencesandembraceourcommonhumanityasthesourceofo ur strength Beresponsiblestewardsofourphysicalassetsandnaturalresources Wewillsustainourcleanairand water beautifulparksandopenspaces livableandsafeneighborhoods andfosteravibrantdowntown includingastableinfrastructure and Encourageastrong sustainableandvibranteconomy fullyutilizingoureducationalandculturalassets sothateverypersonhasanopportunitytoachievefinancialsecurity CITYCOUNCILGOALS SafeCommunity Acommunitywhereallpeoplearesafe valued andwelcome SustainableDevelopment Acommunitythatmeetsits presentenvironmental economic andsocialneedswithoutcompromisingtheabilit y offuturegenerationstomeettheirownneeds 5 6 7 8 CITYOFEUGENE OREGON EugeneCityHall 777PearlStreet Eugene Oregon97401 MayorandCityCouncilasofJune30 2011 Name TermExpires Mayor KittyPiercy January2013 Councilors GeorgeBrown Ward1 January2013 BettyTaylor Ward2 January2013 AlanZelenka Ward3 January2015 GeorgePoling Ward4 January2015 MikeClark Ward5 January2015 PatFarr Ward6 January2015 AndreaOrtiz Ward7 January2013 ChrisPryor Ward8 January2013 Principal Officials JonRRuiz CityManager SarahMedary AssistantCityManager GlennKlein CityAttorney KristieHammitt CentralServicesExecutiveDirector RandallB Groves FireandEmergencyMed icalServicesChief ReneeGrube ActingLibrary Recreation andCulturalServicesExecutiveDirector SarahMedary ActingPlanningandDevelopmentExecutiveDirector PeteKerns ChiefofPolice KurtCorey PublicWorksExecutiveDirector 9 thispageintentionallyleftblank 10 FINANCIALSECTION INDEPENDENTAUDITORSREPORT INDEPENDENTAUDITORS REPORT TotheHonorableMayorandMembersoftheCityCouncil CityofEugene Oregon Wehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivities the business typeactivities eachmajorfund andtheaggregateremainingfundinformationofCityof Eugene Oregon theCity asofandfortheyearendedJune30 2011 whichcollectively comprisetheCitysbasicfinancialstatementsaslistedinthetableofcon tents Thesefinancial statementsaretheresponsibilityoftheCitysmanagement Ourresponsibility istoexpress opinionsonthesefinancialstatementsbasedonouraudit Weconductedourauditinaccordancewithauditingstan dardsgenerallyacceptedintheUnited StatesofAmericaandthestandardsapplicabletofinancialauditscontainedinGovernment AuditingStandards issuedbytheComptrollerGeneraloftheUnitedStates Thosestandards requirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthe financialstatementsarefreeofmaterialmisstatement Anauditincludesexamining onatest basis evidencesupportingtheamountsanddi sclosuresinthefinancialstatements Anaudit alsoincludesassessingtheaccountingprinciplesusedandthesignificantestimatesmadeby management aswellasevaluatingtheoverallfinancialstatementpresentation Webelievethat ourauditprovidesareasonablebasisforouropinions Inouropinion thefinancialstatementsreferredtoabovepresentfairly inallmaterialrespects therespectivefinancialpositionofthegovernmentalactiv ities thebusinesstypeactivities each majorfund and theaggregateremainingfundinformationoftheCity asofJune30 2011 and therespectivechangesinfinancialposition andcashflows whereapplicable thereofforthe yearthenendedinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStates ofAmerica InaccordancewithGovernmentAuditingStandards wehavealsoissuedourreportdated December15 2011 onourconsiderationoftheCitysinternalcontroloverfinancialreportingand onourtestsofitscompliancewithcertainprovisionsoflaws regulations contracts andgrant agreementsandothermatters Thepurposeofthatreportistodescribethescopeofourtesting ofinternalcontroloverfinancialreportingandcomplianceandtheresultsofthattesting andnot toprovideanopinionontheinternalcontroloverfinancialreporti ngoroncompliance Thatreport isanintegralpartofanauditperformedinaccordancewithGovernmentAuditingStandardsand isimportantforassessingtheresultsofouraudit 11 AccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequirethatthe managementsdiscussionandanalysis pages13through22 andthescheduleofpension fundingprogressandthescheduleofOPEBfundingprogr ess page79 bepresentedto supplementthebasicfinancialstatements Suchinformation althoughnotapartof thebasic financialstatements isrequiredbytheGovernmentalAccountingStandardsBoard who considersittobeanessentialpartoffinancialreportingforplacingthebasicfinancialstatements inanappropriateoperational economic orhistoricalcontext Wehaveappliedcertainlimited procedurestotherequiredsupp lementaryinformationinaccordancewithauditingstandards generallyacceptedintheUnitedStatesofAmerica whichconsistedofinquiriesofmanagement aboutthemethodsofpreparingtheinformationandcomparingtheinformat ionforconsistency withmanagementsresponsestoourinquiries thebasicfinancialstatements andother knowledgeweobtainedduringourauditofthebasicfinancialstatements Wedonotexpressan opinionorprovideanyassura nceontheinformationbecausethelimitedproceduresdonot provideuswithsufficientevidencetoexpressanopinionorprovideanyassurance Ourauditwasconductedforthepurposeofformingopinionsonthefinancialstatementsth at collectivelycomprisetheCitysbasicfinancialstatements Theintroductorysection pages1 through10 budgetarycomparisoninformation pages77 78 and80 othersupplementary information pages81through127 andstatisticaltablessection pages129through149 are presentedforpurposesofadditionalanalysisandarenotarequiredpartofthebasicfinancial statements Theaccompanyingscheduleofexpendituresoffederalawardsisp resentedfor purposesofadditionalanalysisasrequiredbyUS OfficeofManagementandBudgetCircularA 133AuditsofStates LocalGovernments andNonProfitOrganizations pages164through 166 andisalsonotarequiredparto fthebasicfinancialstatements Thebudgetarycomparison information othersupplementaryinformation andthescheduleofexpendituresoffederalawards aretheresponsibilityofmanagementandwerederivedfromandrelatedi rectlytotheunderlying accountingandotherrecordsusedtopreparethefinancialstatements Theinformationhasbeen subjectedtotheauditingproceduresappliedintheauditofthebasicfinancialstatementsand certainadditional procedures including comparingandreconcilingsuchinformationdirectlytothe underlyingaccountingandotherrecordsusedto preparethefinancialstatementsortothe financialstatementthemselves andotheradditionalproceduresinaccordancewithauditing standardsgenerallyaccepted intheUnitedStatesofAmerica Inouropinion theinformationis fairlystatedinallmaterialrespectsinrelationtothebasicfinancial statementstakenasawhole Theintroductoryandstatisticaltableshavenotbeensubjectedtotheauditingproceduresapplied intheauditofthebasicfinancialstatementsand accordingly wedonotexpressanopinionor provideanyassuranceonthem ISLERCPA ByGaryIskraCPA amember Eugene Oregon December15 2011 12 ManagementsDiscussionandAnalysis ThemanagementoftheCityofEugene Oregon City presentsthisnarrativeoverviewandanalysistofacilitatebotha shortandalongtermanalysisofthefinancial activitiesoftheCityforthe fiscalyearendedJune30 2011 This ManagementsDiscussionandAnalysis MD A isbasedoncurrentlyknownfacts decisions andconditions that existedasofthedateoftheindependentauditors report Additionalinformation outsidethescopeofthis analysiscan befound intheLetterofTransmittal FinancialHighlights The CitystotalassetsatJune30 2011increased 218millionfrom 9393millionto 9611million or23 from theprioryear Theprimarycausefortheincreaseintotalassetswastheadditionof 88millioninreceivablesand 157million incashandinvestments The Citystotalliabilitiesincreased 07millionfrom 1606millionto 1613million ThenetassetsoftheCity assetslessliabilities atJune30 2011 increased 212millionfrom 7786millionto 7998millionfromtheprioryear Totalnetassetsof 1172millionareunrestricted AtJune30 2011 theCitys governmentalfundsreportedcombinedendingfundbalancesof 1028million an increaseof 68millionincomparisontotheprioryear Approximately 991millionisavailableforspendingatthe governmentsdiscretion subjecttoreportingfundlimitations TheGeneralFundsspendablefundbalanceattheendofthecurrentfiscalyearwas 450million or407 of GeneralFundexpenditures OverviewoftheFinancialStatements Thefollowingdiscuss ionandanalysisisintendedtoserveasanintroductiontotheCitysbasic financialstatementsand otherrequiredsupplementaryinformation TheCitysbasicfinancialstatementscomprisethreecomponents 1 Governmentwidefinancialstatements 2 Fundfinancialstatements 3 Notestothebasicfinancialstatements Government widefinancialstatementsThe governmentwidefinancialstatementsaredesignedtoprovidereaders withabroadoverviewoftheCitysfinances inamannersimilartoaprivatesectorbusiness TheStatementofNetAssetspresentsinformationonalloftheCitysassetsandliabilities withthedifferencebetween thetworeportedasne tassets Overtime increasesordecreasesinnetassetsmayserveasausefulindicatorof whetherthefinancialpositionoftheCityisimprovingordeteriorating TheStatementofActivitiespresentsinformation showinghowtheCitysnetassetschangedduringthemostrecent fiscalyear Allchangesinnetassetsarereportedassoonastheunderlyingeventgivingrisetothechangeoccurs regardlessofthetimingofrelatedcashflows Thus revenuesandexpensesarereportedinthisstatementforsome itemsthatwillresultincashflowsinafuturefiscalperiod Examplesofsuchitemsincludeearned butuncollected propertytaxes andearned butunusedcompensatedabsences BothofthegovernmentwidefinancialstatementsdistinguishfunctionsoftheCity thatareprincipallysupportedby taxesandintergovernmentalrevenues governmentalactivities fromotherfunctions thatareintendedtorecoverall or asignificantportion of theircoststhroughuser feesandcharges businesstypeactivities ThegovernmentalactivitiesoftheCityincludethefollowing Centralservices Fireandemergencymedicalservices Library recreation andculturalservices Planninganddevelopment Police Publicworks 13 Thebusiness typeactivitiesoftheCityincludethefollowing Ambulance transport Municipal airport Parkingservices Stormwaterutility Wastewaterutility Thegovernmentwidefinancialstatementsinclude notonlytheCityitself knownastheprimarygovernment butalsoa legally separateUrbanRenewalAgency URA forwhichtheCityisfinanciallyaccountable Althoughlegallyseparate theURAsgoverningbodyisidenticaltotheCi tys andbecausetheservicesoftheURA areexclusivelyforthebenefit oftheCity itisincludedasan integralpartoftheprimarygovernment Thegovernmentwidefinancialstatementscanbe foundatExhibits 1and2inthebasicfinancial statements FundfinancialstatementsAfundisagroupingofrelatedaccountsthatis usedtomaintaincontroloverresources thathavebeensegregatedforspecificactivitiesorobjectives TheCityuses fundaccountingtoensureand demonstratecompliancewithfinancerelatedlegalrequirements All ofthefunds oftheCitycanbedividedintotwo categories governmentalfundsandproprietaryfunds Governmentalfunds Governmental fundsareusedtoaccountforactivitieswheretheemphasis isplacedon availablefinancialresources ratherthanuponnetincomedetermination Therefore unlikethegovernmentwide financialstatements governmentalfundfinancialstatementsfocusontheacquisitionanduseofcurrentspendable resources aswellasonbalances ofspendableresourcesavailableattheendofthefiscalyear Suchinformationmay beusefulinevaluatingagovernmentsneartermrequirements Becausethefocusofgovernmentalfundsisnarrowerthanthatofthegovernmentwidefinancialstatements itisuseful tocomparetheinformationpr esentedforgovernmentalfundswithsimilarinformationpresentedforgovernmental activitiesinthegovernment widefinancialstatements Bydoingso readersmaybetterunderstandthelongterm impactofthegovernmentsnear termfinancialdecisions BoththegovernmentalfundBalanceSheetandthe governmentalfundStatementofRevenues Expenditures andChangesinFundBalancesprovideareconciliationto facilitatethiscomparisonbetweengover nmentalfundsandgovernmentalactivities Thesereconciliationscanbefound atExhibits3and5inthebasicfinancialstatements TheCitymaintains22individualgovernmentalfunds Informationispresentedseparatelyinthego vernmental fund BalanceSheetandinthegovernmentalfundStatementofRevenues Expenditures andChangesinFundBalancesfor thosefundsthatareconsideredsignificant major totheCitytakenasawhole Thesefinancialstat ementsreportfour majorfunds GeneralFund CommunityDevelopment SpecialRevenue Fund GeneralCapitalProjectsFund andthe SystemsDevelopmentCapitalProjectsFund Datafromtheother21governmentalfundsarecombined intoasingle aggregatedpresentation Summaryfunddatabyfundtypeforthesenonmajorgovernmentalfundsisprovidedasother supplementaryinformation intheformof combiningstatementsatB1andB2ofthis report Individualfunddata for eachofthesenonmajorgovernmental fundsisprovidedintheformof combiningstatementsatC1 C2 D1 D2 E1 andE2 TheCityadoptsanannualappropriatedbudgetforallgovernmentalfunds Todemonstratecompliancewiththe budget budgetarycomparisonstatementshavebeenprovidedfortheGeneral FundandtheCommunityDevelopment FundasrequiredsupplementaryinformationatA1andA2 Fundasrequiredsupplemen taryinformationatA1andA2 Budgetarycomparisonsforallothergovernmentalfunds havebeenprovidedasothersupplementaryinformationatC3throughC12 D3throughD6 andE3throughE8 Thegovernmentalfundfinancial statementscan befoundatExhibits 3and4inthebasicfinancialstatements Proprietaryfunds Proprietaryfunds areusedtoaccountforactivitieswhere theemphasisisplacedonnetincome determination TheCitymaintainstw odifferenttypesofproprietaryfunds enterprisefundsandinternalservicefunds Enterprisefundsareusedto reportthesamefunctionspresentedasbusinesstypeactivitiesinthegovernmental wide financialstatements The Cityusesenterprisefundstoaccount foritsambulancetransport municipalairport parking services stormwaterutility andwastewaterutilityoperations Internalservicefundsareanaccountingdeviceusedto accumulateandallocate costsinternallyamongtheCitysvarious functions TheCityusesinternalservice fundsto accountforengineering services facilitiesservices fleetservices informationsystemsandservices andriskand benefitsmanagementactivities Becauseinternalservicefundspredominantlybenefitgovernmentalratherthan businesstypefunctions theirassetsandliabilitieshavebeenincluded withthegovernmentalactivi tiesinthe governmentwidefinancialstatements 14 Theenterprise funds allofwhichareconsideredtobemajorfundsoftheCity arereported separatelyasproprietary fundfinancialstatementsinthebasicfinancialstatements Conversely allinternalservicefundsarecombin edintoa single aggregatedpresentationintheproprietaryfundfinancialstatements Individualfunddatafortheinternalservice fundsisprovidedasothersupplementaryinformationintheformofcombiningstatementsatG1 G2 andG3 TheCityadopts anannualappropriatedbudgetforallproprietaryfunds Todemonstrate compliancewiththebudget budgetarycomparison statementshavebeenprovidedfortheenterprisefundsasothersupplementary informationat F1thoughF5 Budgetarycomparisonsfortheinternalservicefundsareprovidedasothersupplementaryinformation atG4throughG8 Theproprietaryfundfinancialstatementscan befoundatExhibits6 7 and8inthebasic financial statements NotestothebasicfinancialstatementsThenotesprovideadditionalinformationthatisessentialforafull understandingofthedataprovidedinthegovernment wideandfundfinancials tatements Theyareanintegralpartof thefinancialstatementsandshouldbereadinconjunctionwiththem RequiredsupplementaryinformationInadditiontothebasicfinancialstatementsandaccompanyingnotes this reportalsopresentscertainrequiredsupplementary informationconcerningbudgetary comparisonsfortheGeneral FundandCommunityDevelopmentFund informationabouttheCitysprogressinfundingitsobligationtopro vide pensionandotherpostemploymentbenefitstoitsemployees andthebudgettoGAAPreconciliationschedule Othersupplementaryinformation Thecombiningstatementsandschedulesreferredto earlierandtheschedulesof propertytaxandbondeddebttransactionsfollowtherequiredsupplementaryinformationinthisreport Government wideFinancialAnalysis Asnotedearlier netassetsmayserveovertimeasausefulindicatorofagovernmentsfina ncialposition Inthecase oftheCity assetsexceeded liabilitiesby 7998millionatthecloseofthefiscalyearending June30 2011 CityofEugenes NetAssets GovernmentalActivitiesBusiness typeActivitiesTotal 201120102011201020112010 Capitalassets 413680953408038730241534489243845409655215442651884139 Otherassets2619943712443393864389035843046596305884729287385982 Total assets 675675 324652378116285424 847286892005961100171939 270121 Noncurrentliabilities1124281241047676372674674507516112695591109275153 Otherliabilities41610705411212057007868102359274861857351357132 Totalliabilities1540388291458888 42727533514743443161314164160632285 Netassets Invested incapital assets netofrelateddebt363812593368493364241534490239045916605347083607539280 Restricted6564903656191505116325569160566772815926535207 1 Unrestricted92174866818044052498246623942080117157332105746485 Totalnetassets 521636495506 489274278149512272148562799786007778 637836 ThelargestportionoftheCitysnetassetsisits investmentincapitala ssets lessanyrelateddebtusedtoacquire theseassetsthatarestill outstanding AlthoughtheCitysinvestment initscapitalassetsisreportednetofrelateddebt theresourcesneededtorepaythisdebtmustbeprovidedfromot hersources sincethecapitalassetsthemselves cannotbe usedto liquidatetheseliabilities AnadditionalportionoftheCitysnetassets 773million 97 representsresources thataresubjecttoexternal restrictionsonhowtheymaybeused Theremainingbalanceofnetassets 1172million 146 areunrestrictedand maybe usedtomeetthegovernmentsongoingobligationstocitizensandcreditors 15 CityofEugenesChangesinNetAssets GovernmentalActivitiesBusiness typeActivitiesTotal Revenues 201120102011201020112010 Programrevenues Fees fines andcharges forservices 42 59575330373917531869655061634 59578271880990262 Operatinggrants andcontributions17235076139962422955591471021753063514143344 Capitalgrantsandcontributions86236328668969592786214 11373414 55149422782703 Generalrevenues Taxes10273964310395417100102739643103954171 Grantsandcontributions not restricted tospecificprograms329100232309280032910023230928 Contributionsinlieuoftaxes1376218112342958001376218112342958 Franchisefeesontelecom providersrevenues10954417865303600109544178653036 Unrestrictedinvestmentearnings1170779182309419809929213913688782115233 Totalrevenues200372483183043315596084856516932025998096 8248212635 Expenses Centralservices975991083777660097599108377766 Fireandemergencymedicalservices2726006326737259002726006326737259 Library recreation andculturalservices29249223289568940029249 22328956 894 Planninganddevelopment3220870419833161003220870419833161 Police4764536544801367004764536544801367 Publicworks2977568028550511002977568028550511 Interestonlongtermdebt62801586415984006280 1586415984 Ambulancetransport005669204573709956692045737099 Municipalairport0011031434104040181103143410404018 Parkingservices005517107456711055171074567110 Stormwaterutility0013084702123188481308470 212318848 Wastewaterutility0021351247205881152135124720588115 Totalexpenses1821791031636729425665369453615190238832797217288132 Increase decrease innetassets beforetransfers18193380193703732 95479111554 1302114817130924 503 Transfers 3046159119178730461591191787 00 Increase decrease in netassetsaftertransfers15147221205621606000950103623432114817130924503 Netassets July150648927448592711 4272148562261 786219778637836747713333 Netassets June30 521636495506 489274278149512272 148562799786007778 637836 ExpensesaboveincludetheindirectexpensesasallocatedinExhibit2ofthebasicfinancialstatem ents GovernmentalactivitiesThe changeingovernmentalactivitiesbefore transfersdecreasedfrom 194millioninthe prioryearto 182millioninthecurrentyear Thedecreaseof 12millionbetweenthetwoyearswasdrivenbyt he followingfactors Fees fines andcharges forservices andoperating grantsandcontributionsincreased 122millionand 32 million respectively PlanningandDevelopmentexpendituresincreased 124millionduetoan 80millioncontributiontoLane Communitycollegeforconstructionoftheirnewdowntowncampus and 41millionindevelopmentloans Policeexpenditures increased 28million Thisnextchart comparesprogramrevenuesandexpe nsesfortheindividual governmentalactivitiesforthecurrent year Asthechartreflects mostgovernmentalactivitiesrelied ongeneralrevenuestosupportthefunction 16 Thenextchartshowsthepercentofthetotalforeachsource ofrevenuesupportinggovernmentalactivities Governmental Activities RevenuesbySource Taxes Fees fines andchargesforservices 86 69 43 Operatinggrantsandcontributions 551213 6 06 Contributionsinlieuof taxes Capitalgrantsandcontributions 512 Franchisefeesontelecomprovidersrevenues Grantsandcontributionsnotrestrictedto specificprograms Unrestrictedinvestmentearnings BusinesstypeactivitiesBusinesstypeactivitiesdecreasedtheCitysnetassetsby 86millionbefore transfers Thedecreasewasprimarilydrivenby Capitalgrantsandcont ributionsdecreased 82million duringtheyear primarilyduetoa 91million decrease inFederalAviationAdministrationgrants Thefollowingchartcomparesprogramrevenuestoexpensesbyindividualbusinesstypeactivityf orthecurrentyear Incomparisontogovernmentalactivities business typeactivities typicallyrecover theircoststhroughprogram revenues Inthecurrentyear severalofthebusiness typeactivitiesexperienced lowerthananticipatedprogram revenue 17 Business typeActivities ProgramRevenuesand Expenses ProgramRevenues Expenses Ambulancetransport 73 57 Municipalairport 122 110 Parkingservices 53 55 Stormwaterutility 139 131 Wastewaterutility 207 214 inmillionsofdollars Thechartbelowshowsthat892 ofrevenuesforbusiness typeactivitiesaregeneratedfromfees fines andcharges forservices Capital grantsandcontributionswerederivedpredominantlyfromg rantsfromtheFederalAviation Administrationandthedonationofinfrastructurestemmingfromthedevelopmentofnewresidentialareas Business typeActivities Program RevenuesandExpenses Fees fines andchargesforservices 05 9903 Operating grantsandcontributions Capitalgrantsandcontributions 893 Unrestricted investmentearnings Capitalassets TheCitysinvestmentincapitalassetsforitsgovernmentalandbu sinesstypeactivities asofJune30 2011amountedto 6552million netof accumulateddepreciation Theinvestmentincapitalassetsincludes land rightof ways constructioninprogress buildingsandequipment improvementsotherthanbuildings suchasparksand parkimprovements stormsewersandtrunk sewers stormwaterandwastewatersystems andinfrastructure suchas roadsandsidewalks ThetotalincreaseintheCitysinvestmen tincapitalassetsforthecurrentfiscalyearwas05 18 CityofEugenes CapitalAssets NetofAccumulatedDepreciation GovernmentalActivitiesBusiness typeActivitiesTotal 201120102011201020112010 Land 696110116749902413834865138348658344587681333889 Constructionin progress2231663623684 5733540458141441082585709437828681 Buildingsandequipment1389625871440723033901736736 144993177979954180217296 Improvements other thanbuildings43418974407225205540 4202475811659882317688303685 Stormsewersand trunksewers00129737598132140278129737598132140278 Infrastructure13937174513206031000139371745132060310 413680953408038730241534490243 845409655215443651 884139 Majorcapitalassetadditionsduringthecurrentfiscalyearincludedinfrastructureandimprovementsotherthan buildings AdditionalinformationontheCityscapitalassetscanbefoundintheNotestoBasicFinancialSta tements Note4E BondedDebtAttheendofthecurrentfiscalyear theCityhadtotalliabilitiesof 1613million Ofthisamount 1076millionrepresentedoutstandingbondedindebtedness Outstandingbondeddebtincluded 328millionin general obligationbondstobeservicedbygeneral propertytaxes 06millionincertificatesofparticipationtobe servicedbygeneralpropertytaxes 09millioninlimitedtax improvementbondstobeservicedbyp roperty owners subjecttotheimprovements and 641millioninlimitedtaxpensionbondstoberepaidfromexistingrevenuesources allbackedbythefullfaithandcreditoftheCity TheremainderoftheCitysbondeddebtincludes 12millionin certificatesofparticipationserviced byspecificfundrevenuesand 79millionintaxincrementbondstoberepaidfrom taxincrementrevenues CityofEugenesBondedDebt GovernmentalActivitiesBusiness typeActivitiesTotal 201120102011201020112010 Generalobligationbonds 3284416435389414003284416435389414 Certificatesofparticipation182000021600000018200002160000 Limited taxbonds 650302816486222304810 0006503028169672223 Taxincrementbonds790000000079000000 Deferredamounts 33274 17799 010507 33274 28306 10756117110239383804799493107561171107193331 TheCitystotalbondeddebtincreasedby 04million 03 duringthecurrent fiscalyear dueto 79millioninnew taxincrementbondsissuedoffsetbythe 48millionrefundingoftheBroadwayGarageslimitedtaxbondsand scheduleddebt payments MoodysInvestorsService ratestheCityspublicbond issues TheCitysmostrecentratingsfromMoodysareas follows Aa1forgeneralobligationbonds November2011 withthefollowingexceptions TheGeneralObligationRefundingBonds Series2006are insuredbyAmbacAssuranceandwereratedAaa atissuance Subsequenttoissuance AmbacAssurancewasdowngradedbyMoodysInvestorsServiceto Caa2 InApril2001 Ambac Assuranceseveredtheirrelationshipwith MoodysrequestingthatAmbac ratings bewithdrawn MoodysratingsonsecuritiesinsuredbyAmbacwillbe maintainedat thepublishedunderlying rating orAa1 TheGeneralObligationFireProjectsBonds Series 2002areinsuredbyMBIAInsuranceCorporationandwere ratedAaaatissuance Subsequenttoissuance MBIAInsuranceCorporationwasdowngradedbyMoodys InvestorsService MBIAInsuranceCorporationiscurrentlyratedasB3 19 Aa2forfullfaithandcredit obligations whichincludestheAtriumObligations theSantaClaraFireStation Obligations andtheBroadwayGaragesLimitedTaxBonds November2011 Thepensionobligationbonds areinsuredbyAmbacAssurance andwereratedAaaatissuance Subsequent to issuance AmbacAssurancewasdowngradedbyMoodysInvestorsService toCaa2 InNovemeber2010 MoodysInvestorsServiceupgradedtheunderlyingratin gonOregonLocalGovernmentsLimitedTaxPension Obligations Series2002 toAa3fromA3inconjuctionwitharatingmethodologychangerelatedtopoolfinancings InApril2001 AmbacAssuranceseveredtheirrelationshipwithMood ysrequestingthatAmbacratingsbe withdrawn MoodysratingsonsecuritiesinsuredbyAmbacwillbe maintainedat thepublishedunderlyingrating orAa3 The pensionobligationswereissuedasoneofferingforcertainOregoncit ies counties andspecial districts TheCityofEugenesshareofthetotalpension obligationsonwhichtheratingwasbasedis297 Under OregonRevisedStatutes generalobligationdebtissuesarelimitedto30 oftherealmarketvalueofall taxablepropertywithintheCitysboundaries The 328millioningeneralobligationdebtapplicabletothislimitiswell belowthe 6387millionceiling TheCitysnetdirectgeneralobligationbonded debtpercapitais 202 Additionalinformationon theCitysbondeddebtcan befoundintheNotestoBasicFinancialStatements Note4J Fund basedFinancialAnalysis Aspreviously discussed theCity usesfundaccountingtoensureanddemonstratecompliancewithfinance related legal requirements Governmentalfunds ThefocusoftheCitysgovernme ntalfunds istoprovideinformationonnear terminflows outflows andbalancesofspendableresources Suchinformationisusefulinassessing theCitys financing requirements Asoftheendofthecurrentfiscalyear theCitysgovernmentalfundsreportedcombinedendingfundbalances of 1028million anincreaseof 68millionincomparisontotheprioryear Approximately964 ofthistotalamount 991million constitutesfundbalancewhichis available forspendingatthegovernmentsdiscretion subjectto reportingfundlimitations Theremainderof fundbalance 37million isnonspendablebecauseof thefollowing 1 prepaidexpenditures 2 debtservice 3 inventories and4 assetsheldforresale ThefundbalanceoftheCitysGeneralFundincreased 61millionfrom 399millionto 460millionduringthecurrent fiscalyear Theincreasewascausedbya 85millioninexcessrevenueso verexpendituresoffsetbynettransfersof 24million ThefundbalanceintheCommunityDevelopmentFundincreased 05millionfrom 21millionto 26millionduring thecurrentfiscalyear Theincreasewasprimarilydueto 12millionexcessofrevenues overexpendituresoffsetby 07millioninotherfinancing uses ThefundbalanceintheGeneralCapitalProjectsFundincreased 06million from 118millionto 124millionduring thecurrentfiscalyear Theincreaseinthefundbalancewasprimarilycausedby 05millioninrevenues 34million intransfers and 25millionindebtproceeds offsetby 57millionincapitaloutlayexpenditures Thefund balanceintheSystemsDevelopment CapitalProjectsFundincreased 04millionfrom 53millionto 57 millionduringthecurrentfiscalyear Theincreasewasdueto 25millioninrevenuesoffsetby 21millionin expenditures Proprietaryfunds TheCitysproprietary fundstatementsprovidethesametypeofinformationfoundinthe government widefinancialstatements butinmoredetail Unrestrictednetassetsanditspercenttototaln etassetsofeachproprietaryfundareasfollows AmbulanceTransport 18 million 678 MunicipalAirport 35 million 37 ParkingServices 01 million 06 StormwaterUtility 81million 146 WastewaterUtility 38 million 39 20 Total businesstypenetassetsincreased 51million inthecurrentfiscalyear Significantissues regardingproprietary fundsareasfollows TheAmbulanceTransportFundreporteda 12millionincreaseinnetassets Theincreasewasmainlydueto 15millioninoperatingincomethatwasoffsetby 03millionintransfersout The MunicipalAirportFundreporteda 12millionincreaseinnetassets Theincreasewasduetoa 43millionin contributionsrelatedtoFAAgrantsoffsetby 32millioninoperatinglosses TheParkingServicesFundreporteda 29millionincreaseinnetassets Theincreasewasduetonettransfersof 34millionoffsetbylosses of 05million TheStormwaterUtilityFundreporteda 07millionincreaseinnetassets Theincreasewasprincipallydueto 04millioninoperatinglossesoffsetby 11millionincapitalcontributions TheWastewaterUtilityFundr eporteda 09milliondecreaseinnetassets Thedecreasewasmainlydueto 15 millioninoperatinglossesthatwereoffsetby 06millionincapitalcontributions Otherfactorsconcerningthefinancesofproprietaryfundscanbe foundinthepreviousdiscussionoftheCitys business typeactivities GeneralFundBudgetaryHighlights TheCitys finalbudgetdiffersfromtheoriginalbudgetinthatit containscarry forwardappropriationsforvarious programsandprojects andsupplementalappropriations approvedduringthefiscalyear Thefinalfiscalyear2011 budgetfortheGeneralFundwasincreasedby 60million Theprimaryreasonsforthisincreaseareasfollows 28millionincreasetopolice including 16millionforgrantfundedactivities 07millioninfiredispatch services and 04millionincarry forwardappropriations 07millionincreasetocentralservices including 04millionincarryforwardappropriationsand 02 millionfor additionaljailfunding 04millionincreasetolibrary recreation andculturalservices including 02millionforgrantfunded activitiesand 01millionincarry forwardappropriations 03millionincreaseincarryforwardappropriationsinplanninganddevelopment Thesechangeswerefundedprimarilybyanincreaseof 20millioninintergovernmentalrevenuesand 31million in unspentresourcesfromtheprioryear Thenetincreaseof 58millioninbudgetbasisfundbalancefortheyearendedJune30 2011wasasignificant improvementovertheprojecteddeficitof 15millionintheGeneralFun dfinalamendedbudget Actualrevenueswere 13million lowerthanbudget Althoughtaxrevenueswere 12millionhigherthananticipated intergovernmental revenueswere 13million belowbudgetprojectionsandcharges forservicesandlicensesandpermitsrevenuesboth camein 07millionbelow budget Ontheexpenditureside departmentsunderspenttheirbudgetsbyatotalof 85 million ThesignificantchangeswereinPolice 29million FireandEmergencyMedicalServices 17million CentralServices 16million andPlanningandDevelopment 07million EconomicFactorsandNextYearsBudgetsandRates Duringthepreparationofthebudgetfortheensui ngfiscalyear thelongtermimpactsofthelocaleconomy were examinedinconjunctionwithbusinessdecisionsmadebytheCity Thefollowingarethemajorassumptionsusedin developingtheFY2012budget Interestrateson investmentswillbe065 Propertytaxrevenueisexpectedto decrease27 inFY2012duetoexpirationoftheLibrary LocalOptionLevy Salaries fornonrepresentedemployeesandtheothercollectivelybargainedagreementswillinc rease10 21 Healthbenefitrateswillincreaseby87 PERSandOPSRPcostsareexpectedtobe255 and217 ofpayroll respectively 21 Duringthecurrentfiscalyear budgetbasisfundbalance intheGeneralFundincreasedto 449million anincreaseof 58millionover theprioryear Aportionofthatincreasewasduetounanticipatedrevenuesandunderspendingdur ing theyear CitystaffwillbesubmittingaFY2012supplementalbudgettotheCityCouncilinDecembertodeterminehow toallocatetheunanticipatedendingfundbalance RequestsforInformation Thisfinancialreportisdesigned toprovideageneraloverviewoftheCitysfinancesforthosewithaninterestinthe governmentsfinances Questionsconcerninganyof theinformationprovidedinthisreportorrequestsforadditional financialinformationshoul dbeaddressedto FionanCronin CPA AssistantFinanceDirector CityofEugene 100West1t0hAvenue Suite400 Eugene Oregon97401 22 BASICFINANCIALSTATEMENTS City ofEugene Oregon Exhibit1 StatementofNetAssets June 30 2011 amountsindollars GovernmentalBusinesstype AssetsActivitiesActivitiesTotal Currentassets Equityinpooledcashandinvestments161521534281405 92189662126 Cashwithfiscalagent5177340517734 Receivables netofallowance 37439329548354442922873 Internal balances 7571538 75715380 Duefromothergovernments707780616630158740821 Inventories967709805701 1773410 Prepaidsanddeposits116924401169244 Assetsheldforresale186903801869038 Totalcurrentassets20299085643664390246655246 Noncurrentassets Loansandnotesreceivable0225968225968 Deferredcharges8555240 855524 Pensionassets58147991058147991 Capitalassets Landandconstructioninprogress9192764717375323109302970 Othercapitalassets netofaccumulateddepreciation 321753306224159167545912473 Totalnoncurrentassets472684468241760458714444926 Totalassets675675324285424848961100172 Liabilities Current liabilities Accountspayable421080312621515472954 Wagespayable761629616480249264320 Compensatedabsencespayable815220916833529835561 Duetoothergovernments11653786588351824213 Claimspayable10916609010916609 Deposits14617187134192175137 Interestpayable4574160457416 Unearnedrevenue21541 7710420883196265 Certificatesofparticipationpayable3550000355000 Bondspayable512109905121099 Totalcurrentliabilities41610705700786948618574 Noncurrent liabilities Compensatedabsencespayable1201871750 76295263 Notesandcontractspayable611800006118000 Generalobligationbondandrevolvingcreditfacility146500001465000 Bondspayable netofunamortizeddiscount premium 1006200720100620072 NetOPEBobligation4104 865923914197256 Totalnoncurrentliabilities112428124267467112695591 Totalliabilities1540388297275336161314165 Netassets Investedin capitalassets netofrelateddebt 371712593241534490613247083 Restricted for Capitalprojects247566561162534536382001 Debtservice297191572112979126 Communitydevelopment20259962020259962 Urbanrenewal334692603346926 Otherpurposes641357706413577 Unrestricted9217486 624982466117157332 Totalnetassets521636495278149512799786007 The accompanyingnotes arean integralpart ofthefinancialstatements 23 City ofEugene Oregon Exhibit2 StatementofActivities ForthefiscalyearendedJune302011 amountsindollars Net Expense Revenueand ProgramRevenuesChangesinNetAssets Fees IndirectFines andOperatingCapital DirectExpensesChargesforGrantsandGrantsandGovernmentalBusiness type Expenses AllocationServicesContributionsContributionsActivitiesActivitiesTotal Functions Programs Governmentalactivities Centralservices28293113185332037865208365686365911492425 01492425 Fireandemergencymedicalservices237904333469630224312590993024925945 024925945 Library recreation andculturalservices26569541267968261 759731412022021661228 021661228 Planninganddevelopment308380811370623152655475883903011059254 011059254 Police4176822658771393886160131857815552642285101 042285101 Publicworks282165511559129715974081 6389484315156020531 06020531 Interestonlongtermdebt62801580000 6280158 06280158 Totalgovernmentalactivities185756103357700042595753172350768623632113724642 0113724642 Business typeactivities Ambulancetransport5122204547000730505700016358531635853 Municipalairport10548434483000795570268294274476012055731205573 Parkingservices5262107255000505801121154600247550 247550 Stormwaterutility12201 702883000127521657718410933100837957837957 Wastewaterutility1994224714090002011603105600760675140 675140 Totalbusinesstypeactivities530766943577000531869662955595927862027566932756693 Totalactivities23883279709578271917530635145514941137246422756693110967949 Generalrevenues Propertytaxes97962592097962592 Transientroomtax165816901658169 Localmotorvehiclefueltax311888203118882 Contributionsinlieuoftaxes13762181013762181 Franchisefeesontelecomprovidersrevenues10954417010954417 Grantsandcontributionsnotrestrictedtospecificprograms329100203291002 Unrestrictedinvestmentearning s11707781980991368877 Transfers 304615830461580 Totalgeneralrevenuesandtransfers1288718633244257132116120 Changeinnetassets15147221600095021148171 Netassets July12010506489274272148562778637836 Netassets June30 2011521636495278149512799786007 The accompanyingnotes arean integralpart ofthefinancialstatements 24 CityofEugene OregonExhibit3 BalanceSheet GovernmentalFunds June302011Systems amountsindollars GeneralDevelopmentOtherTotal CommunityCapitalCapitalGovernmentalGovernmental GeneralDevelopmentProjectsPr ojectsFundsFunds Assets Equityinpooledcashandinvestments49672373206678812017994546173933621676102840570 Cashwithfiscalagent12255050547900517734 Receivables Interest100930343623001819461234872 Taxes506586100010432716109132 Accounts27379171724320020263509124335694143 Assessments000013368971336897 Loansandnotes02098393605124310263424091694 Allowanceforuncollectibles 5135 00055741 60876 Duefromotherfunds61065000061065 Duefromothergovernments2533934769711164434033031326771211 Inventories0000615555615555 Prepaidsanddeposits1066473000717901138263 Assetsheldforresale00001869038186 9038 Totalassets621540462388130112688107749321346002631152219298 Liabilitiesandfundbalances Liabilities Accountspayable6445771187322514153494521740343223703 Wagespayable587931437229010491751824667885 8 Duetoothergovernments54123310570804923811481028581 Deposits5147590008586501373409 Deferredrevenue85300972100459601696494586699737098184 Totalliabilities161099802126626525141517424221003265349402735 Fundbalances Nonspendable106647300026363833702856 Restricted22174813261503681792957507912207633953434908 Committed00001125725611257256 Assigned170099100116187630028628673 Unassigned579287000005792870 Totalfundbalances46044066261503612436692575079135969978102816563 Totalliabilitiesandfundbalances621540462388130112688107749321346002631 ReconciliationtotheStatementofNetAssets TheStatementofNetAssets reportsreceivablesattheirnetrealizablevalue However receivablesnotavailabletopayfor current periodexpenditures aredeferred ingovernmentalfunds 34157957 Capitalassetsarenotfinancialresourcesingovernme ntalfunds butare reportedintheStatementofNetAssets attheirnet depreciablevalue 392731764 Allliabilitiesarereported intheStatementofNetAssets However iftheyarenotdueandpayableinthecurrentperiod they arenotrecordedingovernmentalfunds 56096152 Internalservicefunds areproprietaryfundsandnotreported withgovernmentalfunds However becauseinternalservicefunds primarilybenefitgovernmentalactivities theirassets liabilities andnetassetsarereported alongwithgovernmentalactivities intheStatementofNetAssets 48026363 Netassetsofgovernmentalactivities521636495 Theaccompanyingnotesareanintegralpartofth efinancialstatements 25 CityofEugene Oregon Exhibit4 StatementofRevenues Expenditures andChanges inFundBalances GovernmentalFunds ForthefiscalyearendedJune30 2011 amountsindollars Systems GeneralDevelopmentOtherTotal CommunityCapitalCapitalGovernmentalGovernmental GeneralDevelopmentProjectsProjectsFundsFunds Revenues Taxes9447714300022003573116480716 Licensesandpermits56643860001058341616247802 Intergovernmental4 426121523117538924601301446723061009 Rentalincome969420097915188409383266 Chargesforservices106259081107402282383524218718161552 Finesandforfeits2864390000650102929400 Specialassessments0000110025211 00252 Repaymentofrevolvingloans01160885002590221419907 Miscellaneous7652997093821212969559423904184081989 Totalrevenues1189201897112516510542247589254846754183865893 Expenditures Current departmental Centralservices14084747115000987215000396418318188802 Fireandemergencymedicalservices2327882300022854623507369 Library recreation andculturalservices21472103000412658925598692 Planninganddevelopment550874856632660673261089565222134992 Police40187074000235772142544795 Publicworks560770100198180935687815162759 Debtservice Principal2100000001195780112167801 Interest3175520486 0015189341571175 Issuancecosts00005069650696 Capitaloutlay0101643574891217798161575223723382608 Contributionoflandheldforresale0000538929538929 Intergovernmental000080000008000000 Totalexpenditures11 038095159003955758784206032268748166192848618 Excess deficiency of revenuesoverexpenditures85392381212121524824241557013901412 8982725 Otherfinancingsources uses Proceedsofdebtissuance002475000015290 00017765000 Proceedsofnoteissuance034120000003412000 Transfersin3560830033693000533362112263751 Transfersout 5960707 4149682 007548938 17659327 Totalotherfinancingsources uses 2399877 737682584430001307468315781424 Netchangeinfundbalances61393614744395960584155708267296798699 Fundbalances July120103990470521405971184063453352213679670796017864 Fundbalances June30201146044066261503 612436692575079135969978102816563 Theaccompanyingnotesareanintegralpartofthefinancialstatements26 CityofEugene Oregon Exhibit 5 ReconciliationoftheStatementofRevenues Expenditures andChanges inFundBalancesofGovernmentalFundstotheStatementofActivities ForthefiscalyearendedJune30 2011 amountsindollars Netchangeinfundbalances totalgovernmentalfunds6798699 Amountsreportedforgovernmentalactivitiesinthestatementofactivitiesare differentbecause Governmentalfundsdeferrevenuesthatdonotpr ovidecurrentfinancialresources However theStatementofActivitiesrecognizessuchrevenuesattheirnetrealizablevalue whenearned regardlessofwhenreceived 8414793 Donations ofcapitalassetsarereportedascapita l contributionsintheStatementof Activities butdonotappearinthegovernmentalfundsbecausetheyarenotfinancial resources Inaddition theStatementofActivitiesreportsgainsandlossesarisingfrom thedisposalofexistingcapitalassets whilegovernmentalfundsdonot2014773 Governmentalfundsdonotreportexpendituresforunpaidcompensatedabsences interest expense orarbitragesincetheydonotrequiretheuseofcur rentfinancialresources However theStatementofActivitiesreportssuchexpenseswhenincurred regardlessof whensettlementultimatelyoccurs 32919 Capitaloutlayisreportedasexpendituresingovernmentalfunds However the StatementofActivitiesallocatesthecostofcapitaloutlaysovertheirestimateduseful livesasdepreciationexpense 5591562 Proceedsfromtheissuanceoflong termdebtprovidecurrentfinancialresources togovernmental fundsandarereportedasrevenues Inthesameway repaymentsoflongtermdebtuse currentfinancialresourcesandarereportedasexpendituresingovernmentalfunds However neither thereceiptofdebtproceeds northepaymentofdebtprincipalaffecttheStatementofActivities butarereportedasincreasesanddecreasesinnoncurrentliabilitiesintheStatementofNetAssets 9009199 Transfersofcapitalassetsareoftenmadebetweenpro prietaryfundsandgovernmentalfundswhentheuse ofanassetchanges Transfersofliabilitiesaresometimesmadebetweenproprietaryfundsand governmentalfundswhenthefundresponsibleforrepaymentchanges Suchtransferswillprovideoruse economicresourcesinproprietaryfunds butmaynotnecessarily provideor usespendablefinancial resources ingovernmentalfunds 112360 Internalservicefundsareusedbymanagementtoch argethecostsofcertain activities suchasinsurance facilities andfleetservicestoindividualfunds Thenetrevenue expense ofcertaininternalservicefundsisreportedwithgovernmentalactivities1481872 Changeinnetassetsofgovernmentalactivities15147221 Theaccompanyingnotesareanintegralpartofthefinancialstatements27 28 29 thispageintentionallyleftblank 30 CityofEugene Oregon Exhibit 7 StatementofRevenuespExenses agndChanesinFundNetAssets ProprietaryFunds ForthefiscalyearendedJune30 2011 amountsindollarsBusinesstypeActivities Governmental EnterpriseFunds Activities Total AmbulanceMunicipalParkingStormwaterWastewaterInternalService TransportAirportServicesUtilityUtilityTotalsFunds Operatingrevenues Licensesandpermits00085211085211382 Intergovernmental06829211546771840295559276079 Rentalincome03294520517272285404029238806241077761 Chargesforservices72343044624636356314512610029200117024804381658058972 Finesandforfeits0749496419303 3509750370 Miscellaneous7075329052134012838560687202278298810 Totaloperatingrevenues73050577962531526955712829349201160315348252559712004 Operatingexpenses Personnelservices39574113860086127512867929 72104176582630325515234881 Contractualservices35842881137016403682153718166067366245573947766 Materialsandsupplies257582669944164937433198179109033167514373249 Maintenance5683163689711118819146323115 9567051150071648375 Utilities11971394428259226983187096813731203028292 Rent01331409394321456723142207434049 Taxes0022992002299212546 Insurance3404910326963084639961315083959061977305 Claims00000019967474 Centralbusinessfunctions547000483000255000883000140900035770001859000 Depreciation45304448366479811313775373694640103992583115247 Totaloperatingexpenses57800611117606354053021328 0697216279305727005355598184 Operatingincome loss 15249963213532 135745 451348 1511899 37875284113820 Nonoperatingrevenues expenses Interestrevenue8274960061266512928564198099437185 Interestexpense00313031 00313031 4550626 Amortizationofissuancecosts0011633 0011633 39263 Totalnonoperatingrevenues expenses8274960063245386512928564126565 4152704 Income loss beforecapital contributionsandtransfers15332703117526 460283 386219 1483335 3914093 38884 Capitalcontributions04274476011053005600765939852100371 Transfersin0052520840052520842361407 Transfersout 348615 01869300 002217915 0 Changeinnetassets11846551156950292250171908192325950599282422894 Totalnetassets July1 201014956219377369215867892548262279949355053236072 Totalnetassets June30201126802769 493064218790393555453089857029155658966 Adjustmenttoreflecttheconsolidationofinternal servicefundactivitiesrelatedtoenterprisefunds 941022 Changeinnetassetsofbusinesstypeactivities6000950 Theaccompanyingnotesareanintegralpartofthefinancialstatements31 32 33 CITYOFEUGENE OREGON NotestoBasicFinancialStatements NotesIndex 1 SummaryofSignificantAccountingPolicies Pages A TheFinancial ReportingEntity 35 B OrganizationandOperation 35 C GovernmentwideandFundFi nancialStatements 35 36 D MeasurementFocus BasisofAccounting andFinancialStatementPresentation 36 40 E RiskManagement 40 F EquityinPooledCashandInvestments 40 41 GReceivables 41 H InterfundReceivable sandPayables 41 I InventoriesandPrepaidItems 41 J CapitalAssets 42 43 K CapitalizedInterest 43 L CompensatedAbsences 43 M NoncurrentObligations 43 N FundBalance 43 44 O IndirectExpensesAllocation 45 2 ReconciliationofGovernmentwideandFundFinancialStatements A Explanation ofDifferencesBetweentheGovernment wide StatementofNetAssetsandtheGovernmentalFundBalanceSheet 45 46 B Explanation ofDifferencesBetweentheGovernment wide StatementofActivitiesandtheFundStatementofRevenues Expenditures andChangesinFundBalances 46 47 3 Stewardship Compliance andAccountability A BudgetaryInformation 48 B OverexpendituresofAppropriations 48 4 DetailedNotesonAllFunds A EquityinPooledCashandInvestments 48 51 B Receivables 52 C Interfund Receivables Payables andTransfers 53 D DueFromOther Governments 54 E CapitalAssets 55 57 F DeferredRevenue 58 G OperatingLeases 58 59 H BondAnticipationNotes 59 I NoncurrentLiabilities 59 67 5 OtherInformation A RiskManagement 68 B JointVentures 69 C RetirementPlan 69 71 D OtherPost employmentBenefits OPEB 72 75 E Contingencies 75 F OutstandingEncumbrances 75 GSubsequentEvents 75 H ConduitDebt 75 34 CITYOFEUGENE OREGON NotestoBasicFinancialStatements June30 2011 1 SummaryofSignificantAccountingPolicies ThefinancialstatementsoftheCityofEugene Oregon City havebeenpreparedinconformitywithgenerally acceptedaccountingprinciples GAAP asappliedtogovernmentalunits TheGovernmentalAccounting StandardsBoard GASB istheacceptedstandardsettingbodyfor establishinggovernmentalaccountingand financialreportingstandards ThemoresignificantoftheCitysaccountingpoliciesaredescribedbelow A TheFinancialReportingEntity AsdefinedbyGAAP thefinancialreportingentityconsistsoftheprimarygovernment aswell asitscomponent units whicharelegallyseparateorganizationsforwhichtheelectedofficialsoftheprimarygovernmentare financiallyaccountable Financialaccountability isdefinedasappointmentofavotingmajo rityofthecomponent unitsboard andeithera theabilitytoimposeitswillonthecomponentunit orb thepossibilitythatthe componentunit willprovideafinancialbenefit toorimposeafinancial burdenontheprimary government Theaccompanying financialstatementspresenttheCityofEugene Oregon theprimary government andits componentunit TheCityofEugene isamunicipalcorporation governedbyacouncil comprisedofeight members eachelectedbyandrepresentingthecitizensofadifferentwardoftheCity andaMayor whois electedatlarge The componentunitdiscussedinthenextparagraphisincludedintheCitysreportingentity becauseofthesignificance ofitsoperationalandfinancialrelationshipwiththeCity BlendedComponentUnitThe UrbanRenewalAgency oftheCityofEugene Agency isalegallyseparate publicbody corporateandpolitic createdbyordinanceoftheCity andgovernedbytheCityCouncil actingin itscapacityastheUrban RenewalAgencyBoard BecausetheAgencysgoverningbodyisidenticaltothe Citys andbecausetheservicesoftheAgencyareexclu sivelyforthebenefitoftheCity thefundsofthe Agencyareblendedwiththoseof theCitybyincluding themintheappropriatestatementsandschedulesof this ComprehensiveAnnualFinancialReport Separatefinancialstateme ntsfortheAgencycanbeobtained fromtheFinanceDivision oftheCityofEugene B OrganizationandOperation TheCityoperatesundertheEugeneCharterof1976 ageneral grantofpowerscharter TheCityCouncil composedoftheMayorandeightcouncil members formsthelegislativebranchoftheCitygovernment while theCityManageractsastheadministrativehead TheaccountsoftheCityareorganizedonthebasis offunds Fundaccountingisdesignedtodemonstrate legal complianceandaidfinancialmanagementbysegregatinggovernmentfunctionsandactivities The operationsofeachfundareaccountedforbyprovidingaseparatesetofself balancingaccountswhich compriseitsassets liabilities fundbalances netassets revenues andexpenditures expenses C Government wideandFundFinancialStatements Thegovernment widefinancialstatements Exhibits1and2 reportinformationonallactivitiesoftheprimary governmentanditscomponentunit Asageneralrule theeffectofinterfundactivityhas beeneliminatedfrom thesestatements Governmentalactivities whichnormallyaresupportedbytaxesandintergovernmental revenues arereportedseparatelyfrombusiness typeactivities whichrelytoasignificantextentonfees fines andchargesforservices andchargesforservices continued 35 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued C GovernmentwideandFundFinancialStatements continued TheStatementofActivities Exhibit2 demonstratesthedegreetowhichthedirectandallocatedindirect expensesofagivenfunctionorbusiness typeactivityareoffsetbyprogramrevenues Directexpensesare thosethatareclearlyidentifiablewithaspecificfunct ionorprogram Indirectexpensesarethosecosts usually administrativeinnature thatsupportallCity functionsandenabledirectservicestobeprovided Program revenuesinclude1 fees fines andchargestocustomerswhop urchase use ordirectlybenefitfrom goods services orprivilegesprovidedbyagivenfunctionorprogram and2 grantsandcontributions thatare restrictedtomeeting theoperationalorcapitalrequirementsofaparticular functionorprogram Taxesand otheritemsnotproperlyincludedamongprogramrevenuesarereported insteadasgeneralrevenues Fundfinancialstatements Exhibits3through8 areprovidedforgovernmentalfundsandproprietar yfunds Majorindividualgovernmentalfundsandmajorindividualenterprisefundsarereported asseparatecolumnsin thefundfinancialstatements D MeasurementFocus BasisofAccounting andFinancialStatement Presentation Measurementfocusreferstowhatisbeingmeasuredbyafund Basisofaccounting referstowhenrevenues andexpendituresorexpensesarerecognizedintheaccountsandreported inthefinancialstatements Government wideandProprietaryFundFinancialStatements Thegovernmentwideandproprietaryfundfinancialstatementsareaccountedforusinganeconomic resourcesmeasurementfocus wherebyallassetsandliabilitiesare includedintheStatementof NetAssets andtheStatementofFundNetAssets Theincreasesanddecreasesinthosenetassetsarepresentedinthe government wideStatementofActivities andintheproprietaryfundStatement ofRevenues Expenses and ChangesinFundNetAssets Thesefundsusetheaccrualbasisofaccountingwherebyrevenuesare recordedwhenearnedandexpensesarerecordedwhenaliabilityisincurred regardlessofthetimingof relatedcashflows TheCitysgovernment wideandproprietaryfundaccountingandfinancialreportingpracticesarebasedonall applicableGASBpronouncementsaswellasthefollowingpronouncementsissuedonorbeforeNovember3 0 1989 unlessthosepronouncementsconflictwithorcontradictGASBpronouncements FinancialAccounting StandardsBoard FASB StatementsandInterpretations AccountingPrinciplesBoard APB Opinions and AccountingResearchBulletins ARBs oftheCommitteeonAccounting Procedures TheCityhaselectednot toapplyFASBguidanceissuedsubsequenttoNovember30 1989 tobusiness typeactivitiesandtoenterprise funds unlessspecificallyadoptedbytheGASB Interfundactivityconsistsoftransfers servicesprovidedandorused reimbursements advances andloans Asageneral ruletheeffectofinterfundactivityhasbeeneliminatedfr omthegovernmentalwidefinancial statements Exceptionstothisgeneralruleincludeinterfundservicesprovidedandorused Interfundservices providedandorusedareaccountedforasrevenuesandexpensessince theeliminationofsuchrevenuesand expenseswoulddistortthedirect costsandprogramrevenuesreportedforthevariousfunctions Amounts reportedasprogramrevenuesintheStatementof Activitiesinclude1 fees fines andcharges for services 2 operatinggrantsandcontributions and3 capitalgrantsandcontributions includingspecial assessments Grantsandcontributionsnotrestricted tospecificprogramsarereporteda sgeneralrevenues ratherthanasprogramrevenues Likewise generalrevenuesincludealltaxes continued 36 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued D MeasurementFocus BasisofAccounting andFinancialStatementPresentation continued Government wideandProprietaryFundFinancialStatements continued Operatingrevenuesandoperatingexpensesareintermediatecomponentswithin theproprietaryfund StatementofRevenues Expenses andChangesinFundNet Assets andincludeonlythosetransactionsthat constitutetheir principal ongoingactivitiesexclusiveofinvestingorfinancing transactions Significantoperating revenuesincludechargesforservices rentalincome andintergovernmental revenue Significantoperating expensesincludepersonnel materialsandsupplies outsideservices anddepreciation All revenuesand expensesnotmeetingthisdefinitionarereporte dasnonoperatingrevenuesandexpenses GovernmentalFundFinancialStatements Thegovernmentalfundfinancialstatementsareaccountedforusingacurrent financialresources measurementfocus Thebalancesheetgenerallyr eportsonlycurrentassetsandcurrentliabilities andthe Statementof Revenues Expenditures andChangesinFundBalancespresentsincreasesanddecreasesin netcurrentassets Thesefundsusethemodifiedaccrualbasisofac countingwherebyrevenues arerecorded onlywhensusceptibletoaccrual bothmeasurableandavailable Measurable meansthattheamountofthe transactioncanbedetermined Available isdefinedasbeingcollectiblewithinthecurrentperiodorsoon enoughthereafter 60days tobeusedtoliquidate liabilitiesofthecurrentperiod Expenditures otherthan interestonnoncurrentobligations arerecordedwhenthefundliabilityisincurred Realandpersonalpropertytaxes areleviedasofJuly1foreachfiscalyearonvaluesassessed asofJanuary 1 PropertytaxesareanenforceablelienonbothrealandpersonalpropertyasofJuly1andaredueand payableinthreeinstallmentsonNovember15 February15 andMay15 Allpropertytaxesare billedand collectedbyLaneCountyandremittedtotheCity Inthegovernmentalfundfinancialstatements property taxesarereflectedasrevenuesinthefiscalperiodforwhichtheyw erelevied providedtheyaredue orpast dueandreceivablewithinthecurrentperiod andcollectedwithinthecurrentperiodorexpectedtobecollected soonenough thereaftertobe usedtopayliabilitiesofthecurrentperiod 60days Otherwise theyare reportedasdeferredrevenues Propertytaxeswhichareheldatyearendbythecollectingagency Lane County andareremittedtotheCitywithinthe60 dayperiodarereportedas Duefromothergovernmen ts Intergovernmentalrevenuesarerecognizedasrevenueswhenalleligibilityrequirementsaremet Thereare however essentiallytwotypesofintergovernmentalrevenues Inone moniesmustbeexpendedonthe specificpurposeorprojectbeforeanyamounts willbepaidtotheCity therefore alleligibility requirementsare determinedtobemetwhentheunderlyingexpendituresarerecorded Intheother moniesarevirtually unrestrictedastothepurposeoftheexpenditure andareusuallyrevocableonlyforfailuretocomplywith prescribedrequirements therefore alleligibilityrequirementsaredeterminedtobemetatthetimeofreceiptor earlierifthesusceptibletoaccrual criteriaaremet Licensesandpermits chargesforservices finesandforfeits andmiscellaneousrevenues exceptinvestment earnings arerecordedasrevenueswhenreceivedincashbecaus etheyaregenerallynotmeasurable until actuallyreceived Investmentearningsarerecordedasearnedsincetheyaremeasurableandavailable Rentalincomeistypicallyreceivedinadvanceandisdeferredwhenappropriate Specialassessmentsreceivableandrepayment ofrevolvingloansexpectedtobecollectedwithin60daysafter yearendareconsideredmeasurable andavailableandarerecognizedasrevenue Assessmentinstallments thatarelongtermareoffsetbydeferredrevenues continued 37 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued D MeasurementFocus BasisofAccounting andFinancialStatementPresentation continued GovernmentalFunds GovernmentalfundsfinancemostgovernmentalfunctionsoftheCity Theacquisition use andbalancesof theCitysexpendablefinancialresourcesandtherelatedliabilities excludingthoseaccountedforin proprietary funds areaccountedforthroughgovernmental funds Themeasurementfocusisupondeterminationof changesincurrentfinancialresources ratherthanuponnetincomedetermination ThefollowingaretheCitys majorgovernmentalfunds GeneralFund TheGeneralFundisthegeneraloperatingfundoftheCity Itisusedtoaccount forallfinancialresources exceptthoserequiredtobeaccountedforinanotherfund Principalsourcesofreven ueareproperty taxes chargesforservices licensesandpermits andintergovernmentalrevenues Primaryexpenditures oftheGeneralFundaremadeforfireandemergencymedicalservices library recreation andcultural services planninganddevelopment police publicworks andgeneraladministration CommunityDevelopmentFund TheCommunityDevelopmentFundisusedtoaccountforproceedsof specificrevenuesources thatare restricted committed orassignedtoexpendingincluding grantrevenuesreceivedfromthefederal governmentunderprovisionsofTitleIoftheCommunityDevelopmentActof1974 Majorexpenditures includedevelopmentloanstoindividualsandbusinesses aswellascapitalimprovementsbenefitinglow incomepersons GeneralCapitalProjectsFund TheGeneralCapitalProjectsFundisusedtoaccount forthefinancialresourc esthatarerestricted committed orassignedtoexpendingforcapitaloutlayincluding constructionofcapitalfacilitiesnot financedbyproprietaryorothercapitalprojectsfunds GeneralFundtransfers federalandstate grants andbondproceedsprovidethefinancing fortheexpendituresof thisfund SystemsDevelopmentCapitalProjectsFund TheSystemsDevelopmentCapitalProjectsFundisusedtoaccountforresourcesthatar erestricted committed orassignedforconstructionofthenonassessableportionofcapacityenhancingcapital projects Financingis providedbyasystemsdevelopmentchargeleviedagainstdevelopingproperties Expendituresare restrictedbystatelaw tocapacityenhancingprojects forthefollowingsystems transportation sanitarysewers stormsewers andparks facilities ProprietaryFunds Proprietaryfundsareusedtoaccount fortheCitysongoingoperationsandactivitieswhicharesimilartothose foundintheprivatesector Themeasurementfocusisuponthedeterminationofnetincome ThefollowingaretheCitysmajorproprietaryfunds AmbulanceTransportFund TheAmbulanceTransportFundaccountsfortheoperation ofemergencymedicalservicesprovidedtothe public Revenuesareprovidedbyusercharges continued 38 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued D MeasurementFocus BasisofAccounting andFinancialStatementPresentation continued ProprietaryFunds continued MunicipalAirportFund TheMunicipalAirportFundaccountsfortheoperationsofthemunicipalairport Principalsourcesof revenuesarerentalofterminalspacetoairlinesandotherserviceprovid ers landingfees andparking fees ThefundreceivesAirportImprovementProgrammonies fromtheFederalAviationAdministrationfor capitalimprovements Thefundalsoimposespassengerfacilitychargesonpassengersutiliz ingthe airport theproceedsofwhicharerestrictedforuseinfinancingeligibleprojectsasdeterminedby regulation ParkingServicesFund TheParkingServicesFundaccountsfortheoperationsofCityownedparkingfacilities Revenuesources includeparkingfeesandfines meterreceipts andrentals The revenueisusedtooperateandmaintain theparkingfacilities Stormwater UtilityFund TheStormwaterUtilityFundaccountsfortheoperationand maintenanceofthestormwaterdrainage systemandthewetlandresourceprotectionandenhancementprogram Primaryrevenuesarestormwater userfeesandthesaleofwetlandmitigationcredits WastewaterUtilityFund TheWastewater UtilityFundaccountsfortheoperation construction andmaintenanceofthewastewater collectionandtreatmentsystem Primaryrevenuesarewastewateruserfees Additionally theCityreports thefollowingfundtype InternalServiceFunds Internalservicefundsaccount forthoseactivitiesandservicesfurnishedinternally tootherorganizational units withintheCityonacostreimbursementbasis Chargesaremadetothevariousdepartmentsto supporttheseactivities TheCitysinternalservice fundsinclude facilitiesservices fleetservices informationsystemsandservices professionalservices andriskandbenefits Theaggregateofall internalservicefundsisreflectedinthefundfinancialstatements OtherGovernmentalFunds Othergovernmentalfundsincludeallnonmajorspecialrevenue debtservice andcapitalprojectsfundsofthe City Thefollowinglistsallothergovernmentalfundsbygovernmentalfundtype SpecialRevenue Funds ConstructionandRentalHousing LibraryLocalOptionLevy Library Parks andRecreation Public SafetyAnsweringPoint Road continued 39 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued D MeasurementFocus BasisofAccounting andFinancialStatementPresentation continued OtherGovernmentalFunds continued SpecialRevenueFunds continued SolidWasteandRecycling SpecialAssessmentManagement TelecomRegistrationandLicensing UrbanRenewalAgencyGeneral UrbanRenewalAgencyRiverfron t Debt ServiceFunds GeneralObligation Library SpecialAssessment Bond UrbanRenewalAgency CapitalProjectsFunds SpecialAssessment Transportation UrbanRenewalAgency UrbanRenewalAgencyRiverfront E RiskManagement TheCityretainsaportionoftheriskoflossforworkers compensation generalliability andmedical dental andvisionemployeebenefits Theamountestimatedtobepayableisbasedonanactuarialreportofthe estimatedultimate loss includingincurredbutnotreportedclaimsasoftheStatementofFundNetAssetsdate Claimspayableinclude allincrementalcostsdirectlyincurredasaresultofaclaim andconsiderestimated recoveriesonbothsettledandunsettledclaims Claimsexpenseisreducedbyamountsrecoveredor expectedtobe recovered Claims liabilityexpenseareaccountedforintheCitysbasicfinancialstatementsin aninternalservicefund F EquityinPooledCashandInvestments Policies adoptedbytheInvestmentAdvisoryBoardandtheEugeneCityCouncilauthorizetheCityto investin obligationsoftheUSTreasuryanditsagencies timecertificatesofdeposit governmentalmoneymarket bankdepositaccounts bankers acceptances municipalbonds corporatebonds commercialpaper repurchaseagreements reverserepurchaseagreements andtheOregonLocalGovernmentInvestmentPool continued 40 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued F EquityinPooledCashandInvestments continued ItistheCityspolicytoreportatamortizedcostallshortte rm highlyliquidmoneymarketinvestments including corporatebonds commercial paper bankers acceptances municipalbonds andUS Treasuryand agencyobligations andparticipatinginterestearninginvestmentcontrac tswitharemainingmaturityattimeof purchaseofoneyearorless Suchinvestmentsarestatedatcost increasedbyaccretionofdiscountsand reducedbyamortizationofpremiums bothcomputedbythestraightlinemethod Callableinvestments purchasedatadiscount areamortizedtothematurity date andcallableinvestmentspurchasedatapremium areamortizedtothefirstcalldate Investmentswitharemainingmaturityattimeofpurchaseofmor ethanone yeararevaluedatfairvalue TheCitymaintainsacommon cashandinvestmentspoolfor allCityfunds Interestearnedon thepooledcash andinvestmentsisallocatedquarterlybasedon eachfunds averagecashandinves tmentsbalanceasa proportionoftheCitystotalpooledcashandinvestments ForpurposesoftheStatementofCashFlows the Cityconsiders cash toincludethepooledcashandinvestments sincethepoolhasthegeneral characteristicsofademanddepositaccount inthatanyparticipatingfundmaydepositadditionalcashatany timeandalsomaywithdrawcashatanytimewithoutpriornoticeorpenalty G Receivables UnbilledCityservicesthatare significantandmeetthemeasurableandavailablecriteriaforrevenue recognitionare accruedasrevenueinthegovernmentalfundfinancialstatementsatyear end Significant unbilled serviceaccountsreceivablerelatingt othegovernment wideandproprietaryfundfinancialstatements areaccruedasrevenue whenearned H InterfundReceivablesandPayables Inthecourseofoperations numeroustransactionsoccurbetweenindividualfundsforgoo dsprovidedor servicesrendered Thesereceivablesandpayablesareclassifiedas Duefromotherfunds or Duetoother funds inthefundfinancialstatements Duringtheyear borrowingsthatoccurbetweenfundsareclassifieda sinterfundloansoradvances Inthefund financialstatements theshorttermportionofsuch borrowingsareclassifiedas Interfundloansreceivable or Interfund loanspayable The noncurrentportionisclassifiedas Advancestootherfunds or Advancesfrom otherfunds The governmentalfundfinancialstatementsreport thisasNonspendablefundbalancetoindicate fundsarenotavailablefor appropriationandarenotexpendablefinancial resources Inthegovernment widefinancialstatements all interfundreceivablesandpayablesare combinedandany residual balancesbetweenthegovernmentalandbusinesstypeactivitiesarereportedas Internalbalances I InventoriesandPrepaidItems Inventoriesofmaterialsandsuppliesarevaluedatcostoraveragecostusingthefirst infirstoutmethod Inventoriesarecapitalizedandchargedtooperationsasconsumedinbo ththegovernmentwideandfund financialstatements Certainpaymentstovendorsreflect costsapplicabletofutureaccountingperiodsandarerecordedasprepaid itemsinboththegovernment wideandfundfinancialstatements continued 41 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued J Capital Assets Capitalassetsaredefinedbythegovernmentastangibleorintangibleassetsthatareusedin operationsand thathaveinitialusefullivesextendingbeyondasinglereportingperiod The Cityscapitalizationthresholdfor tangibleassetsis 5000 Tangibleassetsincludeland right ofway includedwithland buildings improvements equipment andinfrastructure Thecapitalizationthresholdforintangibleassetsis 50000 Intangibleassetsinclude copyrights trademarks andcomputersoftware Infrastructurecapitalassetsa rethose thatarestationaryinnatureandcanbepreservedforasignificantly greaternumberofyearsthanmostothercapitalassets TheCityhasatransportation infrastructuresystem reportedingovernmentalactivitiesconsi stingofroads bridges sidewalks andtrafficandlightingsystems Infrastructurereportedinbusinesstypeactivitiesconsistsofaregionalairfield andstormwaterandwastewater collectionsystems AspermittedbyGASB34 theCity haslimitedtheretroactivecapitalizationof governmentalfundinfrastructuretofiscalyearsendingafterJune30 1980 Althoughthemajorityofsuch infrastructurewasplacedinservicebeforethatdate ithasnotbeenincludedinthese financialstatements sinceithasbeensubstantially depreciated ExceptforgovernmentalactivitiesinfrastructureplacedinservicepriortoJuly1 1980 allcapitalassetshave beencapitalizedinthegovernmentwideandproprietaryfundfinancial statements Inaccordancewiththe currentfinancialresourcesmeasurementfocus capitalassetsarenotcapitalizedinthegovernmentalfund financialstatements Allpurchasedcapitalassetsarevalued atcostwherehistoricalrecordsareavailableand atestimatedhistoricalcostwherenohistorical recordsexist Historicalcostismeasuredbythecashorcash equivalentpriceofobtaininganasset includingancillarychargesnecessarytoplacetheassetintoitsintended locationandconditionforuse Donatedcapitalassetsarereportedattheir estimatedfairvalueat thetimeof acquisitionplusancillarycharges ifany Additions improvements andothercapitaloutlaysthatsignificantly extendtheusefullifeofanassetarecapitalized Amountsexpendedformaintenanceandrepairsarecha rged toexpendituresexpensesintheappropriatefundsasincurredandarenotcapitalized Capitalimprovements financedbyspecialassessmentswhichprovideassetstotheCitysStormwater UtilityFundandWastewater UtilityFundarecapitalizedintheproprietaryfundStatementofFundNetAssets Capitalassetsaredepreciatedunlesstheyareinexhaustibleinnatureorhaveanindefinite usefullife eg landandright of ways Depreciationisanaccounting processwhichallocatesthecostofcapitalassets ina systematicandrationalmanner tothoseperiodsexpectedtobenefitfrom theuseof capitalassets Depreciationisnotintendedtorepresenta nestimateinthedeclineoffairmarketvalue norarecapitalassets netofaccumulateddepreciation intendedtorepresentanestimate ofthecurrentconditionoftheassets orthe maintenancerequirementsneededtomaintainthe assetsattheircurrentlevelofcondition Depreciationiscomputedovertheestimatedusefullivesof thecapitalassets Allestimatesofusefullivesare basedonactualexperiencebyCitydepartmentswithidenticalorsimilarca pitalassets Infrastructureassets aredepreciatedusingacompositedepreciationmethod Allothercategoriesofassetsaredepreciatedonthe straightlinebasisofaccounting Theestimatedusefullivesofthevariouscategor iesofassetsareasfollows Estimated Category usefullife Buildings4050years Improvementsotherthanbuildings 20years Infrastructure2540years Equipment315years Upondisposalofcapitalassets costandaccumulateddepreciationareremovedfromtheaccountsand if appropriate againorlosson thedisposalisrecognized Inaccordancewiththecompositedepreciation method nogainorloss isrecordedupondisposal butrather costisremovedfromthecapitalassetaccount andchargedtotheaccumulateddepreciationaccount continued 42 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued J Capital Assets continued Capitalassetsofproprietary fundsarereportednetofaccumulateddepreciati oninthegovernmentwide StatementofNetAssetsandtheproprietaryfundsStatementofFundNetAssets Capitalassetsnot specificallyrelatedtoactivitiesreportedinproprietaryfunds arereported netofaccumulateddepreci ationinthe governmentalactivitiescolumninthegovernmentwideStatementofNetAssets Depreciationexpenseon proprietaryfundcapitalassetsisreported inthegovernmentwideStatementofActivitiesandtheproprietary fundStatementofRevenues Expenses andChangesinFundNetAssets Depreciationexpenseongeneral capitalassetsisreported inthegovernmentwideStatementofActivitiesasadirect expense K Capitalized Interest Interestiscapitalizedonconstructed assetsinproprietaryfunds FortheyearendedJune30 2011 no interestwascapitalizedonproprietaryfundcapitalassets L CompensatedAbsences Liabilitiesforaccumulated orvestedvacation leaveandcompensationtimebenefits compensatedabsences arerecordedinthegovernmentwidefinancialstatementsandproprietaryfundfinancialstatements The governmentalfundfinancialstatementsdon otreportliabilitiesforcompensatedabsencesunlesstheyaredue forpayment Sickleavedoesnotvestandisrecordedinallfundsastaken M Noncurrent Obligations Noncurrentobligationsarereportedinthegovernmentwideand proprietaryfundfinancialstatementsas liabilities Thegovernmentalfundfinancialstatementsdonotreportnoncurrentobligationsbecausetheydo notrequiretheuseofcurrentfinancialresources Bond discounts premiums andissuancecostsaredeferred andamortizedoverthetermofthebondsusingthebonds outstandingmethodinthegovernmentwideand proprietaryfundfinancialstatements butare recognizedduringthecurr entperiodinthegovernmental fund financialstatements Thebondsoutstandingmethod doesnotdiffersignificantlyfromtheeffectiveinterest method Thelimitedtaxpension obligationsaredeepdiscountbondsthat increaseinvaluebased ontheinitialyieldto maturity Thisincreaseinvalueis reflectedasanincreaseinnoncurrentliabilitiesontheStatementofNet AssetsandasinterestexpenseontheStatementofActivities N FundBalance Inthefundfinancialstatements thefundbalanceforgovernmentalfundsisreportedinclassificationsthat compriseahierarchybased primarilyontheextentto whichthegovernmentisboundto honorconstraintson thespecificpurposes forwhichamounts inthosefundscanbespent Fundbalance isreportedasnonspendablewhentheresourcescannotbespentbecausetheyareeitherina nonspendableformorlegallyorcontr actuallyrequiredtobemaintainedintact Resourcesinnonspendable formincludeinventories prepaidsanddeposits andassetsheldforresale Fundbalanceisreportedasrestrictedwhentheconstraintsplacedontheuseofresou rcesareeither a externallyimposedbycreditors suchasthroughdebtcovenants grantors contributors orlawsorregulations ofothergovernments or b imposedbylawthroughconstitutional provisionsorenablinglegisla tion FundbalanceisreportedascommittedwhentheCityCouncilpassesanordinancethatplacesspecific constraintsonhowtheresourcesmaybeused TheCityCouncilcanmodifyorrescindtheordinanceatany timethroughpassage ofanadditionalordinance continued 43 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued N FundBalance continued Resourcesthatareconstrainedbythegovernmentsintenttouse themforaspecificpurpose butareneither restrictednorcommitted arereportedasassignedfund balance IntentisexpressedwhentheCityCouncil approveswhichresourcesshouldbe reserved duringtheadoptionoftheannual budget TheCitysFinance Directoruses thatinformationtodeterminewhetherthoseresourcesshouldbeclassifiedasassignedor unassignedforpresentationintheCitysComprehensive AnnualFinancialReport Unassignedfundbalanceistheresidual classificationfortheGeneralFund Thisclassificationrepresentsfund balancethathasnotbeenrestricted committed orassigned withintheGeneralFund Thisclassificationis alsousedtoreportanynegativefundbalanceamountsinothergovernmentalfunds Whenbothrestrictedandunrestricted committed assigned orunassigned resourcesareavailableforuse it istheCityspracticetouserestricte dresourcesfirst thenunrestrictedresourcesasneeded Whenan expenditureisincurredwhereanunrestrictedfundbalanceclassification couldbeused theCityspractice isto usecommittedresourcesfirst assignedresourcessecond andthenunassignedamountsastheyareneeded FundbalancesbyclassificationfortheyearendedJune30 2011wereasfollows Systems GeneralDevelopmentOtherTotal CommunityCapitalCapitalGovernm entalGovernmental GeneralDevelopmentProjectsProjectsFundsFunds Fundbalances Nonspendable Inventories 0000615555615555 Prepaidsanddeposits1066473000717901138263 Assetsheldforresale000018690381869038 Permanentbalance00008000080000 Restricted Capitalprojects008179295750791756146014130180 Communitydevelopment026150360002615036 Rentalhousingprogram0000207803207803 Culturalservices9148130003685096459 9909 Debtservice000018124551812455 Roadmaintenance000021258662125866 Solidwasteandrecycling0000801937801937 Unappropriated endingfundbalance21260000000021260000 Urbanrenewal000058817225881722 Committed ConstructionPermits000017333791733379 Specialassessments000024130952413095 Telecommunications000071107827110782 Assigned Capitalprojects00116187630011618763 Culturalservices1535551000015355 51 Reserveforencumbrances183907700001839077 Reservefornextyearsspending441811300004418113 Reserveforrevenueshortfall794563800007945638 Otherreserves127153100001271531 Unassigned579287000005792870 Total fundbalances 46044066261503612436692575079135969 978102816563 continued 44 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 1 SummaryofSignificantAccountingPolicies continued OIndirectExpensesAllocation Inthefundfinancial statements theCityallocatescertainindirectcosts incurredbythecentralservicesfunction oftheGeneralFundtonongeneralfundsinordertorecoverexpenditures madeonbehalfof thoseotherCity funds Thisallocationhasbeenremovedfrom thedirectexpensescolumninthegov ernment wideStatement ofActivitiesandaseparatecolumn titledindirectexpensesallocationhas beenpresented Indirectcosts allocatedtobusiness typeactivitiesareequaltotheamount actuallypaidbythefunction Theremaining indirectcostsare allocatedtogovernmentalactivitiesbasedonpersonnel servicecosts Theremainingnet expenseinthecentralservicesfunction representsdirectprogramactivityofthat functionincludingitsshareof allocatedindirect costs 2 ReconciliationofGovernment wideandFundFinancialStatements A ExplanationofDifferencesBetweentheGovernmentwideStatementofNetAssetsandtheGovernmenta l FundBalanceSheet TheBalanceSheetforgovernmentalfunds Exhibit3 includesareconciliationbetweentotalfundbalances andtotalnetassetsofgovernmentalactivitiesintheStatementofNetAssets Exhibit1 Thefollowingare selectedelementsof thatreconciliation TheStatement ofNetAssetsreports receivablesattheirnetrealizablevalue However receivablesnot availabletopayforcurrentperiodexpendituresaredeferred ingovernmentalfunds Thedetailsofthis 34157957differenceareasfollows Receivables Interest 1184469 Taxes5908242 Systemsdevelopmentcharges1691370 Municipalcourt1199691 Assessments1277576 Loansandnotes24033934 Subtotal35295282 Allowanceforuncollectibles 1137325 Netadjustment 34157957 Capitalassetsarenotfinancialresourcesingovernmentalfunds butreportedintheStatementofNetAssetsat theirnetdepreciablevalue Thedetailsofthis 392731764differenceareasfollows Capitalassets netofaccumulateddepreciation reported intheStatementofNetAssets governmentalactivitiescolumn Landandconstructio ninprogress 91927647 Othercapitalassets netofaccumulateddepreciation 321753306 Capitalassets netofaccumulateddepreciation reported ininternalservicefundsincludedintheStatementof NetAssets governmentalactivitiescolumn 20949189 Netadjustment 392731764 continued 45 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 2 ReconciliationofGovernment wideandFundFinancialStatements continued A ExplanationofDifferencesBetweentheGovernmentwideStatementofNetAssetsandtheG overnmental FundBalanceSheet continued AllliabilitiesarereportedintheStatementofNetAssets However iftheyarenotdueandpayableinthe currentperiod theyarenotrecordedingovernmentalfunds Thedetailsofthis 56096152differenceareas follows Bondspayable less deferredchargeforissuancecosts 42017127 Notesandcontractspayable 6118000 Accruedinterestpayable 175824 Compensatedabsences 7412061 NetOPEBobligation 373140 Netadjustment 56096152 B ExplanationofDifferencesBetweentheGovernmentwideStatementofActivitiesandtheFundStatementof Revenues Expenditures andChangesinFundBalances TheReconciliationof theStatementofRevenues Expenditures andChanges inFundBalancesof GovernmentalFundstotheStatementofActivitiesisprovidedatExhibit5 Thefollowingareselected elementsofthatreconciliation Governmentalfundsd eferrevenuesthatdonotprovidecurrentfinancialresources However theStatementof Activitiesrecognizessuchrevenuesattheirnetrealizablevaluewhenearned regardlessofwhenreceived Thedetailsofthis 8414793differenceareasfollows Changeindeferredrevenuefromthefollowingsources Propertytaxesreceivable 21108 Specialassessmentsreceivable55960 Systemdevelopmentchargesreceivable1182689 Municipalcourtreceivables571870 Notesreceivable6811357 Subtotal8642984 Changeintheallowanceforuncollectibles228191 Netadjustment8414793 DonationsofcapitalassetsarereportedascapitalcontributionsintheS tatementofActivities butdo not appearinthegovernmentalfundsbecausetheyarenotfinancialresources Inaddition theStatement of Activitiesreportsgainsandlossesarisingfromthedisposalofexistingcapitalassets whilegovernmentalfunds donot Thedetailsof this 2014773differenceareasfollows Donationsofcapitalassets 2014773 continued 46 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 2 ReconciliationofGovernment wideandFundFinancialStatements continued B ExplanationofDifferencesBetweentheGovernment wideStatementofActivities andtheFundStatementof Revenues Expenditures andChangesinFundBalances continued Governmentalfundsdonotreportexpenditures forunpaidcompensatedabsences interestexpense or arbitragesince theydonotrequiretheuseofcurrentfinancialresources However theStatementofActivities reportssuch expenseswhenincurred regardlessofwhensettlement ultimatelyoccurs Thedetailsofthis 32919differenceareasfo llows Compensatedabsences 111521 NetOPEBobligation 36 779 Accruedinterest 3954 Amortizationofissuancecosts 103707 Netadjustment 32919 Capitaloutlayisreportedasexpendituresingovernmentalfunds However theStatementofActivities allocatesthecostofcapitaloutlayover theirestimatedusefullivesasdepreciationexpense The detailsofthis 5591562differenceareasfollows Capitaloutlay 22827512 Depreciationexpense 17235950 Netadjustment5591562 Repaymentsoflongtermdebtuse currentfinancialresourcesandarereportedasexpendituresin governmentalfunds ThepaymentofdebtprincipalaffectstheStatementofA ctivitiesandisreportedasa decreaseinnoncurrentliabilitiesintheStatementofNetAssets The detailsofthis 9009199differenceare asfollowsDebtissued Issuanceofgeneralobligationbonds 9285000 Issuanceoftaxincrementbonds7900000 Issuanceofnotespayable3412000 Issuanceoflimitedtaxbonds580000 21177000 Principalpayments Generalobligationdebt11830250 Certificatesofparticipation210000 Limitedtaxbonds127551 Netadjustment 9009199 Transfersofcapitalassetsareoften madebetweenproprietaryfundsandgovernmentalfundswhentheuseof anassetchanges Transfersof liabilitiesaresometimes madebetween proprietaryfundsandgovernmental fundswhenthefundresponsibleforrepaymentchanges Suchtransferswillprovideoruseeconomic resourcesinproprietaryfunds butmaynotnecessarilyprovideorusespendable financialresourcesin governmentalfunds Transferofgovernmental capitalassetsto proprietaryfunds 112360 47 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 3 Stewardship Compliance andAccountability A BudgetaryInformation TheCityManager submitstotheBudgetCommitteeaproposedoperatingandcapitalbudgetasuff icientlength oftimeinadvancetoallowadoptionof thebudgetpriortoJuly1 Theoperatingandcapitalbudgetincludes proposedexpendituresandthemeansoffinancingthem Publichearingsareconductedtoobtaintaxpayer comments PriortoJuly1 theCitylegallyadoptsitsannualbudgetforall fundsthroughpassageofaresolution The resolutionauthorizesfundappropriationsascurrentannualdepartmentalrequirements debtservice capital outlay interfund transfers interfundloans intergovernmental andmiscellaneousfiscaltransactions Expenditurescannotlegallyexceedappropriationsatthesecontrol levels Appropriationswhichhavenotbee n spentat yearendlapse althoughanamendingresolutionpassedinthesubsequentyearspecifically provides forthereappropriationofprioryearlapsed encumbrances Unexpectedadditionalresourcesorappropriationsmayb eaddedtothebudgetthroughtheuseofa supplementalbudget Asupplementalbudgetrequireshearingsbeforethepublic publicationsinnewspapers andapprovalbytheCityCouncil Originalandsupplementalbudgetsmaybemodifie dbytheuseof appropriationtransfersbetweenthelevelsofcontrol SuchtransfersrequireapprovalbypassageofaCouncil resolutionauthorizingthetransfer Allbudgetamendmentsaresubject tothelimitationsputforthinth eOregon RevisedStatutesChapters294305through294565 Supplemental appropriations permittedbyOregon BudgetLaw were authorizedbytheCityCouncilduringthefiscalyear Theneteffectofamendingresolutions passedduringthefiscalyearwasanappropriationincreaseof 17718556 B OverexpendituresofAppropriations FortheyearendedJune30 2011 theSpecialAssessmentManagementSpecialRev enueFundandthe ParkingServicesEnterpriseFundhadbudgetbasisexpendituresinexcessoflegalappropriationsof 57528 and 125789 respectively 4 DetailedNotesonAllFunds A EquityinPooledCashandInvestments TheCitymaintainsacommoncashandinvestmentspoolthatisavailable forusebyallfunds Eachfunds portionofthispoolisdisplayedintheStatementofNetAssets theStatementofFundNetAssets orthe BalanceSheetas Equityinpooledcashandinvestments Cashandinvestmentsarecomprisedofthe followingatJune30 2011 Cashonhand 55609 Cashwithfiscalagent517734 Depositswithbanks7956483 Investments181650034 190179860 Deposits AtJune30 2011 theCitysdepositswith variousfinancialinstitutions hadabankvalueof 10706159 which included 4011784intimecertificatesofdepositsand 517734heldbyescrowcompanies cashwith fiscal agent TheCitysinvestmentpolicylimitsinvestments intimecertificatesofdepositsto50 oftheCitystotal investmentportfolio withamaximumlengthtomaturityofthree years continued 48 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued A EquityinPooledCashandInvestments continued Deposits continued AllCity depositsnotcoveredbyFDICinsurancearecov eredbythePublic FundsCollateralizationProgram PFCP oftheStateofOregon ThePFCPisashared liabilitystructureforparticipatingbankdepositories betterprotectingpublicfundsthoughstillnotguaranteeingthatallf undsare100 protected Abank depositoryisrequiredtopledgecollateralvaluedatleast10 of theirquarterendpublicfund depositsifthey areadequatelycapitalized The OfficeofStateTreasurer OST hasidentifiedthefo llowingexceptionstothe collateral calculationandany exceptionrequires 100 collateralization Abankmaynotacceptpublicfund depositsfromonedepositorinexcessoftheirnetworth Ifthebank hasadropinnetworth thattakesthem outofcompliance theyarerequiredtopost100 collateralon anyamountthedepositorhas inexcessofthebanksnetworthwhileworkingtoeliminatethatexcess Abankmaynotholdaggregatepublicfunds inexcessofapercentageoftheirnetworth basedon theircapitalization category 100 forundercapitalized 150 foradequatelycapitalized 200 for wellcapitalized unlessapproved foraperiodof90daysorless byOST Abankmayonlyholdinexcessof30 ofallaggregatepublicfunds reportedbyallbanksholding Oregonpublicfundsiftheexcessiscollateralizedat100 TheOST attheadviceoftheDirector ofConsumer andBusinessServices mayalsoatanytimerequirebanks topledgeadditionalcollateralup to110 ofthevalueofFDICuninsuredpublicfunddepositsIntheevent ofa bankfailure theentirepoolofcollateralpledgedbyallqualifiedOregonpublicfunds bankdepositoriesis availabletorepaydepositsofpublic fundsofgovernmententities CustodialCreditRisk Custodialcreditriskistheriskthatintheeventofabankfailure thegovernmentsdepositsmaynotbe returnedtoit AtJune30 2011 theCityhaddepositsof 750000insuredbyfederaldepositoryinsuranceand 9438425collateralizedunderthePFCP AtJune30 2011 theCityhad 517734indeposits cashwithfiscalagent heldbyescrowcompaniesthat wereuninsuredanduncollateralized Investments AsofJune30 2011 theCityheldthefollowinginvestments andmaturities Weighted average of Carryingmaturityinvestment Investmenttypevalueinyearsportfolio Corporatesecurities 17310073045695 Localgovernmentinvestmentpool403042010003222 Municipalbonds391659351292216 USagencysecurities828751451080456 UStreasurysecuritie s1994680114211 Total18165003407511000 continued 49 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued A EquityinPooledCashandInvestments continued InterestRateRisk Asameansoflimitingitsexposuretolossesarisingfromr isinginterestrates theCitysinvestmentpolicylimits investmentasfollows MaximumMaximum oflength Investmenttypeportfoliotomaturity Bankers acceptances25 6months Corporatesecurities35 18 months Localgovernmentinvestmentpool100 1day Stateandlocalgovernmentobligations50 3years USagencysecurities100 3years US agencysecurities Temporary LiquidityGuaranteeProgram TGLP 25 December31 2012 US treasurysecurities100 3years Withtheexceptionofpass throughfunds themaximumamountofpooledinvestmentstobeplaced inthe LocalGovernmentInvestmentPoolislimitedbyOregonStatuteto 43117180 whichwillincrease proportionatelyto thePortlandConsumerPriceIndex The limitcanbe temporarilyexceededfortenbusiness daysanddoesnotapplyeithertopassthroughfundsortofundsinvestedonbehalfof anothergovernmental unit CreditRisk TheCityspolicy whichadherestoState ofOregonlaw istolimititsCorporateandMunicipalinvestmentsas follows IssuerswithinOregonmustbe rated A bonds orA2 P2 commercialpaper orbetterbyStandard andPoors MoodysInvestorsServiceoranyothernationallyrecognizedstatisticalratingorganizationattime ofpurchase IssuersnotinOregonmustberatedAA Aa bonds orA1 P1 commercial paper orbetterat timeofpurchase Investments continued AtJune30 2011 theCitysinvestmentswereratedasfollows HighestRatingFrom Moodys InvestorsServiceorStandard PoorsCorporation InvestmenttypeTotalMIG1AaaAAAAaAAAANotrated Corporatesecurities 17310073001731007300 Localgovernment investmentpool40304201000040304201 Municipalbonds3916593513360972842135341972177904860 USagencysecurities82875145082875145000 US treasurysecurities199468001994680000 Total 1816500341336097877119605150729079048640304201 continued 50 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued A EquityinPooledCashandInvestments continued TheOregonStateTreasurer maintainstheOregonShortTermFund OSTF ofwhichtheLocalGovernment InvestmentPool LGIP isapart Participation bylocalgovernmentsisvoluntary TheStateofOregon investmentpoliciesaregovernedbystatuteandtheOregonInvestmentCouncil InaccordancewithOregon Statutes fundsareinvestedasaprudentinvestorwoulddo exercisingreasonablecare skillandcaution The LGIPwascreatedtoofferashort terminvestmentalternativetoOregon localgovernmentsan ditisnot registeredwiththeUSSecuritiesandExchange Commission TheinvestmentsareregulatedbytheOSTF andapprovedbytheOregonInvestmentCouncil ORS294805to294895 AtJune30 2011 thefairvalue oftheCitysdepositswiththeLGIPapproximates cost TheOSTFfinancialstatementsareavailableat http wwwost stateorus TheLGIPsportfolioconcentrationofcreditriskatJune30 2011 included CorporateNotes 458 US TreasuryandAgencySecurities 385 Government GuaranteedCorporateSecurities 106 Commercial Paper 27 BankNotes 12 CertificatesofDeposits 06 andMunicipalBonds 06 Thecreditrisk associatedwiththeinve stmentswas AAArating 480 AArating 182 Arating 325 BBBrating 02 notrated 06 andratingswithdrawn 05 ConcentrationofCreditRisk TheCitys policyforinvestinginindividualissuersvariesdependingonthetypeofinv estments Agency securitiesarerestrictedtonomorethan25 foranyoneissuer Nomorethan25 ofthetotalportfolioof investmentsmaybeinvestedinasingleissuerofbankers acceptances Investmentsincommercialpaperor corporatebondsofanyoneissuermaynotexceed5 oftheinvestmentportfolio Investmentsinthe TemporaryLiquidityGuaranteeProgram TLGP arelimitedto5 perbank Thecombinedlimitforeachbank incertificatesofdeposits bankers acceptances corporateindebtedness andTLGPis10 continued 51 52 53 54 55 56 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued E CapitalAssets continued Depreciationexpensewaschargedtofunctionsprograms asfollows Governmentalactivities Centralservices 169984 Fireandemergencymedicalservices1066044 Library recreation andculturalservices2200708 Planninganddevelopment413194 Police829331 Publicworks12556687 Capitalassetsheldbythegovernm ents internal servicefundsarechargedtothevariousfunctions basedontheirusageoftheassets3115247 20351195 Businesstypeactivities Ambulancetransport 45304 Municipalairport4483664 Parkingservices798113 Stormwaterutility1377537 Wastewaterutility3694640 10399258 continued 57 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued F DeferredRevenue Governmentalfundsreportdeferredrevenueinconnectionwithreceivablesforrevenues thatarenot consideredtobeavailabletoliquidateliabilitiesofthecurrentperiod Inaddition governmentalfundsand proprietaryfundsreportdeferredrevenueinconnectionwithresourcesthathavebeenreceivedbutnotyet earned Thevariouscomponentsofdeferredrevenueconsistofthefollowing Fundbytype Unavailable Unearned Total Propertytaxesreceivable General 587427505874275 Othergovernmentalfunds121843501218435 Assessmentsreceivable Othergovernmentalfunds127576901275769 Systemsdevelopmentcharges receivable SystemsDevelopmentCapital Projects169137001691370 Notesreceivable CommunityDevelopmentSpecialRevenue20 926175020926175 SystemsDevelopmentCapitalProjects512405124 Othergovernmentalfunds307156503071565 OtherGeneral119969114561312655822 CommunityDevelopmentSpecialRevenue07842178421 AmbulanceTransport0742 785742785 MunicipalAirport0128388128388 ParkingServices0167011167011 StormwaterUtility039033903 Internalservicefunds0351273351273 Othergovernmentalfunds32875268353301228 Totaldeferredrevenue 35295279319626538491544 G OperatingLeases TheCityconductssomeofitsoperationsfromleased facilitieslocatedbothinsideandoutsidethecentral businessdistrict Allsuchleasesforfacilitiesareclassifiedasoperat ingleasesandexpirewithinthenextsix years ThetotalrentalexpensefortheyearendedJune30 2011 foroperatingleaseswas 655631 Mostof theseleasesfor facilitiescontainanoptionwherebytheCitycan aftertheinitialleaseterm renewitsleasefor periodsofonetotenyears TheseoptionsenabletheCitytoretainuseoffacilitiesindesirableoperating areas continued 58 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued G OperatingLeases continued Thefollowingisascheduleoffutureminimumrentalpaymentsrequiredunder operatingleasesthathaveinitial orremainingnoncancelableleasetermsinexcessofoneyearasofJune30 2011 Fiscalyear endingJune30Rentals 2012 792892 20131029030 20141001870 2015830473 2016685405 Totalminimumfuturerentals 4339670 H BondAnticipationNote OnNovember3 2009theCityenteredintoaRevolving CreditFacilitywithBankofAmericaNA withan authorizedlimitof 2500000 ForeachdrawtheCityelectsfromei theraLIBORbasedtaxableortaxexempt interestrate OnJune30 2011 theCityelectedtoclosethis creditfacility Drawsonthiscreditfacilitywere recordedasaliabilityoftheSpecialAssessmentCapitalProjectsFund Thelineofcreditwasavailableto financeconstruction oflocalimprovementprojectswhichprimarilybenefitthepropertyownersagainstwhose propertiesspecialassessmentswereleviedBeginning Ending balanceIncreaseDecreasebalance Governmental activities Revolvingcreditfacility Revolvingcreditfacility 8293188228571652175 0 I NoncurrentLiabilities GeneralObligationBondandRevolvingCreditFacility Street OnNovember4 2008 EugenevoterspassedMeasure20145 authorizingtheCity toissueamaximum of 35900000ofgeneralobligation GO bonds Theproceedsfromthesaleofthebondsaretobeusedfor streetpreservation TheCitycanissuethebondsinoneormoreseries The bondscanbeissuedtoprovide interimfinancingandtorefundthebondsthatprovide interimfinancing TheCityhasaGOandrevolvingcredit facilitywithBankofAmerica NA whichmatureson June1 2012and hasan authorizedlimitof 4000000 TheCityelectsfromeitheraLIBORbasedtaxableortaxexempt interestrateforeachdraw AsofJune30 2011 theCityhada 0balanceonthecreditfacilitywit h 22590000inauthorizedborrowingremaining DrawsonthiscreditfacilityarerecordedasafinancingsourceintheTransportationCapitalProjectsFund Thedebtwillberepaidfromgeneralpropertytaxrevenuesorbythefutureiss uanceoflongtermgeneral obligationbonds whichcanbeissuedattheCitysdiscretion TheGeneral ObligationBondandRevolving CreditFacility StreetandOff StreetBikeandPedestrianPaths isbackedbythefullfaithandcre ditoftheCity andisincludedintheCitysGOdebtlimit continued 59 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued I NoncurrentLiabilities continued GeneralObligationBondandRevolvingCreditFacility Street continued Beginning Ending Governmentalactivities balanceIncreaseDecreasebalance GO bondandrevolving creditfacility Street 068100006810000 0 GeneralObligationBondandRevolving CreditFacility POS OnNovember7 2006 EugenevoterspassedMeasure20 110 authorizingtheCity toissueamaximumof 27490000ofgeneralobligation GO bonds Theproceedsfromthesaleofthebondsaretobeusedfor thepurchaseoflandforparksando penspace andtheconstructionandimprovement ofathleticfieldsandthe WestEugeneWetlands EducationCenter TheCitycan issuethebondsinoneormoreseries Thebondscan beissuedto provideinterimfinancingandtorefund thebondsthatprovideinterimfinancing OnMay31 2007 theCityenteredintoaGeneralObligationBondandRevolvingCreditFacilitywithBankof America NA currentlybearing interestat075 withamaturitydateofJune12012 Thefacilityhasan authorizedlimitof 6875000outstandingatany giventimeandisfurtherlimitedtoamaximumoftheamount authorizedunderthebondmeasure AsofJune30 2011 theCity hada 1574164balanceonthecredit facilitywith 13538800inauthorizedborrowingremaining DrawsonthiscreditfacilityarerecordedasafinancingsourceintheGeneralCapitalProjectsFund Thedebt willberepaidfromgeneralpropertytaxrevenuesorbythefutu reissuanceoflongtermgeneralobligation bonds whichcan beissuedattheCitysdiscretion TheGeneralObligationBondandRevolvingCreditFacility isbackedbythefullfaithandcreditoftheCityandisincludedintheCitysGO bondeddebt marginlimit Beginning Ending Governmental activities balanceIncreaseDecreasebalance GO bondandrevolving credit facility POS 684414247500015852501574164 GeneralObligation Bonds TheCityissuesgeneralobligationbondstofinancemajorconstructionprojectsingovernmentalandbusiness typeactivities GObondsingovernmentalactivitiesarebackedbythefullfaithandcreditoftheCityandare servicedbygeneralpropertytaxrevenues TheCitysGObondeddebtissubjecttoadebtlimitof3 ofreal marketvalueperOregonRevisedStatutes287A050 FortheyearendedJune30 2011 theCityhad95 of capacityavailable GO bondscurrentlyoutstandingareasfollows continued 60 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued I NoncurrentLiabilities continued GeneralObligationBonds continued OriginalEnding Governmentalactivitiesissuanc eInterestrates balance Generalobligationbondsservicedby generalpropertytaxes FireProjectsBonds Series2002 86800003000 to4650 5430000 ParksandOpenSpacesBonds Series200463050002500 to4650 3960000 GeneralObligation RefundingBonds Series2006249900003500 to4125 17170000 ParksandOpenSpacesBonds Series200856000005100 4710000 Totalgeneralobligationbonds 4557500031270000 Annualdebtservicereq uirementstomaturityfor generalobligationbondsareasfollows Governmentalactivities Fiscalyear endingJune30 PrincipalInterest 2012 35600001315527 201337050001169051 201438550001015856 20154015000855660 20164180000688026 20172021106800001378071 2022127500074467 312700006496658 CertificatesofParticipation TheCityissues certificatesofparticipation COPs tofinancemajorconstructionprojectsingovernmental activities The AtriumObligations arebackedbythefullfaithandcreditoftheCity anddebtpaymentsareto bepaidfromrentalpaymentsmadebypropertyoccupants includingCitydepartments TheSantaClaraFire ObligationsarebackedbythefullfaithandcreditoftheCityandthedebtpaymentsaremadebytheGeneral Fund continued 61 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued I NoncurrentLiabilities continued CertificatesofParticipation continued OriginalEnding Governmentalactivities issuanceInterestrates balance Certificatesofparticipationserviced bygeneralpropertytaxes SantaClaraFireStation Series2003 20900002000 to4000 645000 Certificatesofparticipationserviced byspecificfundrevenues AtriumObligations Series1998A tax exempt12000003700 to4900 565000 AtriumObligations Series1998B taxable 12000006125 to6200 610000 Totalcertificatesofparticipation 44900001820000 Annualdebtservicerequirementstomaturityforcertificatesofparticipationareasfollows Governmentalactivities Fiscalyear endingJune30PrincipalInterest 2012 35500089230 201336000073823 201437000057855 201516500040770 201618000031700 2017201839000032895 1820000326273 LimitedTaxBonds TheCityissueslimitedtaxbondsingovernmentalandbusiness typeactivities Limitedtaxbondsin governmentalactivitiesincludelimitedtaximprovementbondsandlimitedtaxpensionbonds Limitedtax improvementbondsfinancepublicimprovementsthatbenefitprivateparties Improvementbonds aresecured bythebenefited propertiesandaretoberepaidininstallmentsfrompropertyowners Limitedtax pension bondsfinanceaportionoftheestimated unfundedactuarialliabilitywiththeOregonPublicEmployees RetirementSystem The pensionbondsaretoberepaidfromexistingrevenuesources Alllimitedtaxbonds arebacked bythefull faithandcreditoftheCity withinthelimitationsofArticleXIoftheOregonConstitution continued 62 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued I NoncurrentLiabilities continued LimitedTaxBonds continued OriginalEnding Governmentalactivities issuanceInterestrates balance Limitedtaxbonds LimitedTaxPensionBonds Series2002 843350002000 to7410 64109824 LimitedTaxImprovementBonds Series200610364275100 340457 LimitedTaxImprovementBonds Series20115800007050 580000 Totallimitedtaxbonds 8595142765030281 TheLimitedTaxPensionBonds Series2002 ingovernmentalactivities aredeepdiscountbondsandreported netofaccretion However theannualdebtservicerequirementstomaturityarereportedonacashbasisand donotaccount for accretedamounts Thefollowingtablereconcilestheendingbalanceoflimitedtaxbonded debtandtheannualdebtservicerequirem entstomaturityschedule Total limitedtaxbonds 65030281 Less Accretionofdeepdiscount 7538003 Totaldebtservicerequirementsforlimitedtaxbonds 57492278 Annualdebtservicerequirementstomaturityforlimitedtax improvementbondsareasfollows Governmentalactivities Fiscalyear endingJune30PrincipalInterest 2012 058253 2013058253 2014058253 2015058253 201634045758253 201720210204450 202220270204450 202858000020445 920457720610 continued 63 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued I NoncurrentLiabilities continued LimitedTaxBonds continued Annualdebtservicerequirementsto maturityforlimitedt axpensionbondsareasfollows Governmentalactivities Fiscalyear endingJune30PrincipalInterest 2012 8440994150273 20138994574344915 20149497984559574 20159788614805512 201610039225065451 201720211071568424349654 202220262659500010512351 20272028145850001337463 5657182159125193 Total limitedtaxbonds 5749227859845803 TaxIncrement Bonds TheCitysUrbanRenewalAgencyissues taxincrementbonds tofinancemajorconstructionprojectsin governmentalandbusiness typeactivities ThepurposeoftheUrbanRenewalAgencyistostimulate economicdevelopmentbyfinancing publicimprovementswithindes ignateddistricts Taxincrementbondsare servicedbypropertytaxincrementrevenues Whenanurbanrenewaldistrictisfirstcreated theproperty assessedvaluewithinthedistrictboundariesisestablishedasa frozenbase TheUrbanRenewalAgency receivespropertytaxesrelatedto theincrementalincreaseinthepropertyassessedvaluethat isinexcessof the frozenbase OnMay25 2011 theCityissued 7900000ofDowntownUrbanRenew alDistrictTaxIncrement Bonds Series2011A datedMay25 2011 bearingafixedinterestrate of520 andmaturingonJune1 2020 The proceedsoftheBondswereusedto refund 44millionindebtserviceassociatedwiththelimited taxbonds issuedbytheCitytofinance constructionof theBroadwayGaragesand 35millioninfinancialassistanceto LaneCommunityCollegetohelpbuildtheirnewDowntownCampus Therefundingof theBroadwayGaragesLimitedT axBonds Series1997 resultedinaneconomicgaindespite thenetcostfrom refunding Theeconomicgainrealizedinthis refundingwas 84000andthenetcost resultingfromtherefundingwasasfollows Cashflowrequirementstos erviceolddebt 5574191 Less Cashflowrequirementsfornewdebt 5600976 Netcashfromrefunding 26785 continued 64 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued I NoncurrentLiabilities continued TaxIncrementBonds continued OriginalEnding GovernmentalactivitiesissuanceInte restrates balance Taxincrementbonds URA TaxIncrementBonds Series2011 79000005200 7900000 Totallimitedtaxbonds 79000007900000 Annualdebt servicerequirementstomaturityfortaxincrementbondsareasfollows Governmentalactivities Fiscalyear endingJune30PrincipalInterest 2012 717000410800 2013754000373516 2014794000334308 2015835000293020 2016878000249600 201720203922000517348 79000002178592 NotesPayable InJuly2008 theCityborrowed 2706000fromtheUS DepartmentofHousingandUrbanDevelopment HUD tofinancethepurchaseofthehistoricWashburne andCentreCourtbuildingsintheUrbanRenewal DowntownDistrict Thenotepaysinterestatavariable rateequaltothethreemonthLIBORrateplus02 Therate adjustsmonthlyonthefirstdayofeachmonth OnNovember16 2010 theCityenteredintoacontractwithHUDtoborrow 5189000tosupportthe rehabilitationofthehistoricWashburneandCentreCourtbuildingsintheUrbanRenewalDowntownDistrict AsofJune30 2011 theCityhadborrowed 3412000againstthenote The notepaysinterestatavariab le rateequaltothethreemonthLIBORrateplus02 Therateadjustsmonthlyonthefirstdayofeachmonth LoanInterestEnding Governmentalactivitiesamountratebalance Notespayable HousingandUrbanDevelopment WashburneandCentreCourtBuilding27060v0ar0ie2s706000 WashburneandCentreCourtBuildingRehabilitation518v9ar0ie0s03412000 78950006118000 continued 65 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 4 DetailedNotesonAllFunds continued I NoncurrentLiabilities continued NotesPayable continued Annualdebtservicerequirementstomaturityfornotespayable areasfollows Governmentalactivities Fiscalyear endingJune30PrincipalInterest 2012 030780 201312800030297 201424800029200 201524800027953 201632800026403 201720211690000107079 20222026199000060669 2027203014860007197 6118000319578 TheHUDnoteswillberepaidfromprincipalandinterestpaymentsreceivedfromaloantoBeam Properties EugeneLLC whopurchasedthepropertyfromtheCity TheloanproceedsfromtheBeamProp ertiesEugene LLCloanwillbe receivedintheCommunityDevelopmentSpecialRevenueFund CompensatedAbsences AtJune30 2011 theCityreportedcompensatedabsencesof 8272396ingovernmentalactivities The GeneralFund internalservicefunds andothergovernmentalfunds aretypicallyusedtoliquidatethese liabilities InternalServiceFundDebt Basedonananalysisof billings governmentalactivitieshavebeendetermin edtobethepredominantsource ofrevenueforallinternalservice funds Therefore noncurrentliabilitiesoftheinternalservicefundsare reportedingovernmentalactivities AsofJune30 2011 internalservicefund debtincludedtheAtrium Obligationsof 1175000 LimitedTaxPensionBondsof 64109824 deferredbonddiscountsnetof premiumsof 119547 and 860335incompensatedabsences continued 66 67 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 5 OtherInformation A RiskManagement TheCityhasestablishedaninternalservicefund toaccountforandfinanceitsrisksof loss TheCityhasa selfinsuredliabili typrogramwhichcoverspersonalinjury publicofficials errorsandomissions automobile and employersliability withamaximumself insuredretentionof 2000000peroccurrence Inaddition theCity hasaself insuredworkers compensationprogramwhichcoversemployees workrelatedillnessesand injuries includingemployersliability withamaximumselfinsuredretentionof 1000000peroccurrence AllregularfullandparttimeCi tyemployeesareeligibleformedical dental andvisioninsurancecoverage Employeesmaychoosebetweentwoself insuredplans theCityHealthPlan aPreferredProvider Organization PPO planortheCity ManagedCarePlan aPointofService POS plan Athirdself insured medicalplan theCityHybridPlan isavailabletoNonrepresented andIATSErepresented employees The Cityhasestablishedaself insurancefundtopaymedical dental andvisionclaimsofemployeesandtheir dependentson theCityHealthPlan uptotheselfinsuranceretention limitof 250000peremployee Coverageforworkers compensation general liability andemployees healthclaims inexcessoftheself insuranceretentionlimitispurchasedfromcommercialinsurers TheCityalsopurchasesall riskproperty insurancecoveragefromacommercial insurer The propertyinsurancepolicyhasaba sic 25000deductible withearthquakeandfloodinsurancecoveragessubjecttothefollowingdeductibles flood 250000deductible peroccurrence earthquake 2 ofthecombinedvalueofthepropertyatthelocation subjecttoaminimum deductibleof 100000perlocationandthedeductibleappliesseparatelytoeachlocation Duringtheprevious three fiscalyears therewasoneliabilityclaimthatexceededtheinsurancecoveragelevels ClaimsliabilitiesreportedbytheCityarebasedonanactuarialestimateoftheultimatecostofsettlingclaims incurred includingincurredbutnotreported IBNR claimsasofJune30 2011 Claimsliabilitiesincludeall incrementalcostsincurreddirectlyasaresultofaclaim andconsiderestimatedrecoveriesonbothsettledand unsettledclaims Claimsexpensehasbeenreducedbyamountsrecovered orexpectedtoberecovered throughexcess insurance AtJune30 2011 atotalclaimsliabilityof 10916609isreportedintheRiskandBenefitsInternalService Fund Allpriorandcurrentyearclaimsarefullyreservedandhavenotbeendiscounted TheCitydoesnot utilizeannuitycontractsfromcommercial insurers Therefore duringthisreportingperiod allknownliabilities havebeendisclosed Thefollowingchangesoccurredintheclaimsliabilityinthecurrentandp reviousfiscalyear FiscalLiabilityCurrentyear yearbalanceatclaimsandLiability endedbeginningchangesinClaimbalanceat June30ofyearestimatespaymentsendofyear 201010133777203740302017555610332251 201110332251199674741938311610916609 continued 68 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 5 OtherInformation continued B JointVentures TheCityofEugene isaparticipant withLaneCounty theCityofSpringfield theEugeneWaterandElectric Board andtheLane Councilof GovernmentsintheRegionalExecutiveGroup REG TheREGisgoverned byasevenmemberboardconsistingoftheChiefAdministrativeOfficerofeachoftheparticipating governments plus theCountyAssessorandtheCountySheriff all ofwhomhaveanequalvoteintheREG operations TheREGisajointventure establishedbyintergovernmental agreementtoadministerandset policyfortheRegionalInformation Service RIS thecomputercenterservingtheparticipatinggovernments TheCityofEugenemaintainsan ongoingfinancial responsibilityforitsshareofRISliabilitiesandforits proportionateshare ofanyRIScontractsente redintowhileboundbytheintergovernmentalagreement until suchcontracts arepaidoff Additionally theCityhasanongoingfinancialresponsibilityastheREGsprimary customer providingapproximately43 ofitsrevenues AlthoughtheCityofEugenehasnoexplicit measurableequityinterestintheREG itdoesmaintainaresidual interestinRISassetsupondissolutionofthe jointventure TheREGdoesnotissueaseparatefinancialre port AllRISfinancialactivityisaccountedforintheInformationServicesFund an enterprisefundoftheLane Countyreportingentity LaneCountysmostrecentlypublishedfinancialstatementwasfortheyearended June30 2010 whereitsInformationServicesFundreflectedoperatingincomeof 1618051 anincreasein netassetsof 1583051andtotalnetassetsof 12915949 Forthefiscalyear endedJune30 2011 theCity paid 2274753toLaneCountyforitsshareofRISoperations TheCityofEugeneisalsoaparticipantwithLaneCountyandtheCityofSpringfieldintheMetropolitan WastewaterManagementCommission MWMC ajointventure establishedbyintergovernmentalagreement toconstruct maintain andoperateregionalseweragefacilities TheMWMCconsistsofasevenmember boardtowhichtheCityofEugene appointsthreevotingmembers TheCity ofEugene hasnoexplicit measurableequityinterestintheMWMC However theCityhasanongoingfinancialresponsibility forthe operationsoftheMWMCinthattheCityisobligatedtoadoptdisposalratesandchargesnot lessthan those adoptedbytheMWMC andtoforward totheMWMC itsshareoftherevenuesasspecifiedintheadopted financingplan whichrequiresthatallMWMCadministrative operational andmaintenanceexpensesbe financedthroughauniformdistrictwidemonthlyfee MWMCcontractswiththeCity ofEugeneforoperation oftheregionalseweragefacilitiesonacost reimbursementbasis whichisaccountedforintheWastewaterUtility Fund Forthefiscalyear endedJune30 2011 theCityprovidedbillable operationstoMWMCcosting 11271623andMWMCowedtheCity 1084833forunreimbursedcostsatyear end The CityofSpringfieldincludestheMWMCasacomponen t unitofitsfinancialreportingentity MWMCsmostrecentlypublishedfinancialstatementwasfortheyear endedJune30 2010 whichreflectednetincomeof 6802260andtotalfundequityof 115924191 Separatefinancial statementsforMWMCcan beobtainedfromtheCityofSpringfieldFinanceDepartment C RetirementPlan PlanDescription TheCityisaparticipatingemployerintheOregon PublicEmployeesRetirementSystem PERS anagent multipleemployer publicemployeeretirementsystemestablishedunderOregonRevisedStatutes 238600that actsasacommoninvestmentandadministrativeagentforpublicemployersintheStateofOregon PERSisa definedbenefitpensionplanthatprovidesretirementanddisabilitybenefits annualcostoflivingadjustments anddeathbenefitstomembersandtheirbeneficiaries Benefitsareestablishedbystatestatute continued 69 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 5 OtherInformation continued C RetirementPlan continued PlanDescription continued Inthe2003 legislativesession theOregon LegislativeAssemblycreated asuccessorplanforPERS The OregonPublicServiceRetirementPlan OPSRP acostsharingmultiple employerdefinedbenefitanddefined contribution pensionplan OPSRPiseffective forallemployeeshiredonorafterAugust29 2003 Thenew planconsistsofadefinedbenefit program the PensionProgram andadefinedcontributionportion the IndividualAccountProgramor IAP ThePensionProgramportionofOPSRPprovidesalifepensionfunded byemployercontributions Benefitsarecalculatedbyaformulaformemberswhoattainnormalretirementage Theformulatakesintoaccount finalaveragesalary yearsofservice andafactorthatvariesbasedontypeof service generalversuspoliceorfire ThedefinedcontributionportionofOPSRPisprovidedtoallmemberswhoarePERSorOPSRPeligible State statuterequiresthatcoveredemployeescontribute60 oftheirannualcoveredsalaryt otheIAPplaneffective January1 2004 Statuteallows thattheemployer mayelectto payanyoralloftheemployees requiredIAP contributions Thoseemployeeswho hadestablishedaPERSmembershippriortothecreationofOPSR P will retaintheirexistingPERSaccounts butmembercontributionsmade afterthebeginningof2004willbe depositedintothemembersIAPaccount BothPERSandOPSRPareadministeredbytheOregonPublicEmployeesRetirementBo ard OPERB The comprehensiveannualfinancialreportofthefundsadministeredbytheOPERBmaybe obtainedbywritingto OregonPublicEmployeesRetirementSystem POBox23700 Tigard OR972813700 bycalling 503 598 7377 orbyaccessingthePERSwebsiteahtttp oregongovPERS FundingPolicy TheCityhaselectedtopayalloftheemployees requiredIAP contributions ForthefiscalyearendedJune30 2011 the60 IAP contributionwas 5393764 599 ofcoveredpayroll InadditiontotheIAPcontribution theCitycontributed101 of coveredpayrolltothedefinedbenefitpensionplans Thiscontributionratewas determined aspartoftheDecember31 2007PERSandOPSRPactuarial valuations The mostrecent actuarialvaluationwaspreparedasofDecember31 actuarialvaluationwaspreparedasofDecember31 2009 The 2009valuationwasusedtoestabl ishratesas ofJuly1 2011 TheCityalsochargesaninternalrateof55 ofpayrolltodepartmentstofundtherepayment oftheCityspensionobligationbonds whichwereissuedin2002 AnnualPensionCost TheCityofEugenehassubmit tedcontributionsasrequiredbyOPERB ForthefiscalyearendedJune30 2011 theCitysannualpension expendituresexpenseexclusiveofthe60 IAPcontributionwas 10683385 Thisamountconsistedoftheannualrequiredcontribu tionto thedefinedbenefitpensionplansof 9088115 and 1595270inamortizationofpensionassets The Cityscontributionswereequaltotheannual required contributions whichwerelessthantheannualpension costasaresultoftheamortizationofpensionassets TheCitysannualpension costandpensionassetsfortheyearendedJune30 2011 wereasfollows Annualrequiredcontribution 9088115 Interestonpensionassets 4779461 Adjustmenttotheannualrequiredcontribution6374731 Annualpensioncost10683385 Contributionsmade9088115 Decreaseinpensionassets 1595270 Pensionassets beginningofyear59743261 Pensionassets endofyear 58147991 continued 70 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 5 OtherInformation continued C RetirementPlan continued AnnualPensionCost continued TheCitysannualpensioncost thecontribution thepercentageofannual pensioncostcontributedtotheplan andthepensionassetsforfiscalyearendingJune30 2011andtheprecedingtwoyearswereasfollows Annual Percentage Fiscal year pension ofAPC Pension endingJune30 cost APC Contribucotnitroibuntedassets 2009133813461201365990 61220364 201010371206889410386 59743261 201110683385908811585 58147991 FundedStatusandFundingProgress AsofDecember31 2009 themostrecentactuarialvaluation theactuarialaccruedliability AAL forbenefits was 664728789 andtheactuarialvalueofassetswas 572595446 resultinginanunfundedactuarial liability UAAL of 92133343 Thecoveredpayroll annualpayrollofactiveemployeescoveredbytheplans was 89005209 andtheratiooftheUAALtothecoveredpayrollwas1040 Thescheduleoffundingprogress presentedasRequiredSupplementaryInf ormationfollowingtheNotesto BasicFinancialStatementspresentsmultiyear trendinformationaboutwhethertheactuarialvalueofplan assetsisincreasingordecreasingovertimerelativetotheactuarialaccruedliabilityf orbenefits ActuarialMethodsandAssumptions ForthefiscalyearendingJune30 2011 theCitysannualrequiredcontributionrate forPERSandOSRPwas basedontheDecember31 2007actuarialvaluationusingtheprojectedunitcr editmethod Theactuarialassumptions fortheDecember31 2007PERSandOPSRPactuarialvaluationsincludedan investmentreturnof80 85 forPERSvariable accountbalances aprojectedsalarygrowthof375 and aprojectedinflationrateof275 ThePERSactuarialvaluationincludedahealthcarecostinflationtrendrate of70 in2010decreasingto45 in2029 Theactuarialvalueofassetsequalsthemarketvalueofassets Theunfundedactuariallyaccruedliabilityandplangainsandlossesareamortizedasalevelpercentageofthe combinedvaluationpayroll overaclosedperiodof20yearsforPERSand16yearsforOPSRP BoththePERSandOPSRPdefinedb enefitpensionplansutilizeacontributionratestabilizationmethodto restrictthedegreeofchangetonewcontributionrates Thenewcontributionratewillnotincreaseordecrease fromthepriorcontributionratebymorethant hegreaterof 3percentagepointsor20 ofthepriorcontribution rate Iftheplansfundedpercentagedropsbelow70 orincreasesabove130 thesizeofthecollardoubles Ifthefundedpercentageis between70 and80 orbetween120 and130 thesizeoftheratecollaris increasedonagradedscale Theactuarialvalueofassetsisequaltotheirfairmarketvaluelesscontingency capitalpreservation andrateguaranteereserves TheOregonLegislativeAssemblycreatedasecondlevelor Tier ofPERSbenefits thatmodified serviceand disabilityretirementallowancespayabletopersonswhoestablishedPERS membershiponorafterJanuary1 1996 Tier Two members FutureinterestcreditsonallmembercontributionsinTierOneandTierTwo RegularAccounts areassumedtoaccrueatan annualrateof80 compoundedannually continued 71 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 5 OtherInformation continued D OtherPostemploymentBenefits OPEB Oregon PublicEmployeesRetirementSystems PERS RetireeHealthInsuranceAccount RHIA PlanDescription TheCity contributestotheOregonPublicEmployeesRetirementSystems PERS RetireeHealthInsurance Account RHIA acost sharingmultipleemployerdefinedbenefitpostemploymenthealthcareplan administeredbytheOregonPublicEmployeesRetirementBoard OPERB The plan whichwasestablished underOregonRevisedStatutes238420 providesapaymentofup to 60permonthtowardsthecostsof healthinsuranceforeligibl ePERSretirees RHIApostemploymentbenefitsaresetbystatestatue A comprehensiveannualfinancialreportofthefundsadministeredbytheOPERBmaybe obtainedbywritingto OregonPublicEmployeesRetirementSystem POBox23700 Tigard OR972813700 bycalling 503 598 7377 orbyaccessingthePERSwebsiteathttp oregongov PERS FundingPolicy Participating employersarecontractually requiredtocontributeatarateassessedbiannual lybytheOPERB currently035 ofannualcoveredpayroll TheOPERB setstheemployercontributionratebased onthe annualrequiredcontributionoftheemployers ARC anamountactuariallydeterminedinaccordancewiththe parametersofGASBStatement45 TheARCrepresentsaleveloffundingthat ifpaidonanongoingbasis is projectedtocovernormalcosteachyearandamortize anyunfundedactuarialliabilities orfundingexcess of theplanoveraperiodnottoexceed thirtyyears TheCityscontributionstoPERS RHIAforthepastthree yearswereasfollows allofwhichequaledtherequiredcontributionsforthatyear Fiscal year ending June30 Contribution 2009 309134 2010236218 2011236631 CityHealthcare Plan PlanDescription TheCityadministersasingleemployerdefinedbenefithealthcareplanthat providespostretirementmedical dental andvisioncoverage foreligibleretirees theirspouses domesticpartners anddependentsonaself paybasis Benefitprovisionsare establishedthroughnegotiationsbetweentheCityandrepresentativesof collectivebargainingunits EligibleparticipantsmayselectfromoneoftheCitystwoself insuredhealthcare plans theCityHealthPlanortheCityManagedCarePlan Thelevelof benefitsprovidedbytheplansarethe sameasthoseaffordedtoactiveemployees Coverageisprovidedtoretirees spouses anddomestic partnersuntiltheybecomeeligibleforMedicare typicallyage65 andtoeligibledependentsuntilage26 TheCityspostretiremen thealthcareplanwasestablishedinaccordancewithOregonRevisedStatutes ORS 243303 ORSstipulatethatforthepurposeofestablishinghealthcarepremiums theratemustbebasedon allplanmembers includingbothactiveempl oyeesandretirees Duetotheeffectofage retireeclaimcosts aregenerallyhigherthanclaimcostsforallmembersasawhole Thedifferencebetweenretireeclaimscosts andtheamountofretireehealthcarepremiumsrepresentsth eCitysimplicitemployercontribution continued 72 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 5 OtherInformation continued D OtherPost employmentBenefits OPEB continued CityHealthcarePlan continued PlanDescription continued TheCityalsoprovidespostemploymentlifeinsurancebenefitsto fullydisabledemployeesthroughasingle employerdefinedbenefitplan Theplanprovidesawaiveroflifeinsurancepremiumsforemployeeswho participateintheCityslifeinsuranceplanwhobecometotallydisabled theplanisunderwrittenbyStandard InsuranceCompany whereby theCitypaysapremiumrateforactiveanddisabledemployees andStandard InsuranceCompanyprovidestermlifeinsurancecoverage IntheeventtheCitychangeslifeinsurance carriers StandardInsuranceCompanydoesnotretainanyliabilityforfuturedeathbenefits In changinglife insurancecarriers ifthenewcarrierwasunwillingtoaccepttheliabilityforthedisabledemployees theCity wouldbe responsibleforanyfuturedeathbenefits TheCityspostemploymentlifeinsurancebenefitfordisabledempl oyees isanelectivebenefit offeredbythe City thisbenefitis subjecttocollectivebargainingagreements Theamountoflifeinsurancebenefitsthata disabledemployeereceivesisbasedontheamountofcoverageandthereduc tionpatternineffectatthetime ofdisablement Thecoverageamountvariesperemployer group themaximumbenefitis 250000 TheCitydidnotestablishanirrevocabletrust orequivalentarrangement toaccount foreither plan Instead theactivitiesoftheplansarereportedintheCitysRiskandBenefits InternalServiceFund Neitherplanissues aseparatereport Funding Policy TheCityhastheauthoritytoestablish andamendcontributionrequirements Therequiredcontributionis basedonprojectedpay asyou gofinancingrequirements SincetheCityshealthcareplanisself insured the annualrequiredcontributionscanfluctuate Forthefiscalyear endingJune30 2011 theCityscombinedplan contributionswere 851492 AnnualOPEBCostandNetOPEBObligation TheCitysannualotherpostemploymentbenefitcost expense is calculatedbasedontheannualr equired contributionoftheemployer anamountactuariallydeterminedinaccordancewithin theparametersofGASB 45 The ARCrepresentsaleveloffundingthat ifpaidonanongoingbasis isprojectedto covernormalcost eachyearandamortizeanyunfundedactuarialliabilities orfundingexcess overaperiodnottoexceedthirty years ThefollowingtableshowsthecomponentsoftheCitysannualOPEBcost forthefiscalyear ending June30 2011 theamountactuallycontributedtotheplans andchangesintheCitysnetOPEBobligation Annualrequired contribution 995671 InterestonnetOPEBobligation213870 Adjustment totheannualrequiredcontributio n 273681 AnnualOPEBcost expense 935860 Contributionsmade851492 IncreaseinnetOPEBobligation84368 NetOPEBobligation beginning ofyear4112887 NetOPEBobligation endofyear 4197255 continued 73 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 5 OtherInformation continued D OtherPost employmentBenefits OPEB continued AnnualOPEBCostandNetOPEBObligation continued TheCitysannualOPEBcost thecontribution thepercentageofannualOPEBcostcontributedto theplans andthenetOPEBobligationfor2011andtheprecedingtwoyearswereasfollows Percentageof FiscalyearAnnualannualOPEBNetOPEB endingJune30 OPEBcostContributioncostcontributedobligation 20091429319134378594 4178547 201015016731567333104 4112887 201193586085149291 4197255 FundedStatusandFundingProgress AsofJune30 2011 themostrecentactuarial valuationdate theactuarialaccruedliability AAL forbenefits was 9502642 andtheactuarialvalueofassetswas 0 resultinginanunfundedactuarialaccruedliabilityof 9502642 The coveredpayroll annualpayrollofactiveemployeescovered bytheplans was 91224907 andtheratiooftheUAALtothecoveredpayrollwas10 Asof June30 2011 theCityhassetaside 3667887to payforfuture postemploymentbenefits whichis includedintheunrestrictedportionofnetassetsintheRiskandBenefits InternalServiceFund Sincethese assetshavenotbeenplacedinaqualifiedtrust orequivalentarrangement theyhavenotbeenrecognizedas partoftheactuarialvaluation Actuarialvaluationsofanongoingplaninvolveestimatesof thevalueof reportedamountsandassumptions abouttheprobability ofoccurrenceofeventsintothefu ture Examplesinclude assumptionsaboutfuture employment mortality andthehealthcarecosttrend Amountsdeterminedregardingthefundedstatusofthe planandtheannualrequiredcontributionsoftheemployeraresubjectt ocontinualrevisionasactualresults arecomparedwithpastexpectationsandnewestimatesaremadeaboutthefuture Thescheduleoffunding progress presentedasrequiredsupplementaryinformation followingthenotestotheb asicfinancial statements presentsmultiyeartrendinformationaboutwhethertheactuarialvalueofplanassetsisincreasing ordecreasingovertime relativetotheactuarialaccruedliabilitiesforbenefits ActuarialMethodsandAssumptions Projectionsofbenefitsforfinancialreportingpurposes arebasedonthesubstantiveplan theplanas understoodbytheemployerandtheplanmembers andincludethetypesofbenefits providedatthetimeof eachvaluationandthehistoricalpatternofsharingofbenefitcosts betweentheemployerandplanmembersto thatpoint Theactuarialmethodsandassumptionsusedinclude techniquesthataredesignedtore ducethe effectsofshort termvolatilityinactuarialaccruedliabilitiesandtheactuarialvalueofassets consistentwiththe longtermperspectiveofthecalculations continued 74 CITYOFEUGENE OREGON NotestoBasicFinancialStatements 5 OtherInformation continued D OtherPost employmentBenefits OPEB continued ActuarialMethodsandAssumptions continued TheJune30 2011actuarialvaluatio nsforthehealthcareplanandthepostemploymentlifeinsurancebenefits fordisabledemployeeswerebasedontheentryagenormalandtheprojectedunitcreditactuarialcost methods respectively Theactuarialassumptionsforb oth valuationsincludedaninvestmentreturnof52 Thehealthcareplanactuarialvaluationincludedahealthcarecostinflationtrendrateof90 in2010 decreasingto60 in2020 Theunfundedactuariallyaccruedliabilityandthe gainsandlossesforbothplans areamortizedasaleveldollaramountoveranopenperiodof30years E Contingencies TheCityiscontingently liablewithrespecttolawsuitsandotherclaims incidentaltotheordinarycourseofits operations ClaimscoveredbytheCitysselfinsuranceinternalservicefundarereviewedandlossesare accruedbasedupon thejudgmentofCitymanagement Basedupontheadviceoflegalcounselwithrespectto suchlitigationandc laims Citymanagementcannotdeterminewhat effecttheultimate dispositionofthese matterswillhaveonthefinancial positionorresultsofoperationsofCity funds F OutstandingEncumbrances AtJune30 2011 theCityhasencumberedthefollowingsignificantcommitments FundAmount General 1839077 CommunityDevelopmentSpecialRevenue1160844 GeneralCapitalProjects815201 SystemsDevelopmentCapitalProjects494554 MunicipalAirport3304310 ParkingServices227763 StormwaterUtility116551 WastewaterUtility916595 Internalservicefunds672306 Othergovernmentalfunds8950815 Totaloutstanding encumbrances 18498016 GSubsequentEvents InNovember2011 theCityissued 11020000inGeneral ObligationRefundingBonds torefund 5430000 oftheFire ProjectsBonds Series2002 4220000oftheParksandOpenSpacesBonds Series2008 anda portionoftheGeneralObligationBondandRevolvingCreditFacilityobligation H ConduitDebt OnDecember27 2010 theCityissued 69millionofBankLoanRevenueBonds datedDecember30 2010 bearingavariable interestrate andmaturingonDecember27 2035 Thebondswereissuedtoprovide financialassistancetoWoolworthProperties LLCfortheconstructionoftheBennettBuilding whichislocated withintheCitysUrbanRenewalDownt ownDistrict The Cityisnotobligatedinanymannerforrepaymentof thebonds Accordingly thebondsarenotreportedasliabilitiesintheaccompanyingfinancialstatements As ofJune30 2011 69million ofthebonds wereoutstanding 75 REQUIREDSUPPLEMENTARYINFORMATION thispageintentionallyleftblank 76 CityofEugene Oregon A1 GeneralFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars BudgetActual BudgetGAAP OriginalFinalbasis Adjustmentbasis Revenues Taxes932780009327800094477143094477143 Licensesandpermits63825006382500566438605664386 Intergovernmental380401357933014492415662944426121 Rentalincome987689876896942096942 Chargesforservices11312442120014771130003267412410625908 Finesandforfeits29090002909000286439002864390 Miscellaneous47462047462079183626537765299 Totalrevenues1182593431209376661196871447669551189201 89 Expenditures Current departmental Centralservices225346682327173921644188755944114084747 Fireandemergencymedicalservices246394282498760023298775 19952 23278823 Library recreation and culturalservices217036132206609121468007409621472103 Planninganddevelopment6123327645114557179772092295508748 Police40615918434308614058016039308640187074 Publicworks62571726320275560770105607701 Debtservice2450002450002417550241755 Intergovernmental550000550000289896289896 0 Totalexpenditures1226691261273227111188484598467508110380951 Excess deficiency of revenuesoverexpenditures 4409783 638504583868577005538539238 Otherfinancingsources uses Transfersin10957767112252991095774173969113560830 Transfersout 4923704 6291236 5960707 05960707 Totalother financingsources uses 6034063493406349970347396911 2399877 Netchangeinfundbalance1624280145098258357193036426139361 Fundbalance July1 2010328042243906629739066297838 40839904705 Fundbalance June30 2011344285043761531 544902 016114205046044066 77 CityofEugene Oregon A2 CommunityDevelopmentFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars BudgetActual BudgetGAAP OriginalFinalbasisAdjustmentbasis Revenues Intergovernmental70401918032759523117505231175 Chargesforservices5000500011074011074 Repaymentofrevolvingloans00011608851160885 Miscellaneous12632501263250710210 828709382 Totalrevenues83084419301009595245911600577112516 Expenditures Current departmental Centralservices600060000115000115000 Planninganddevelopment3618486361848 6290196527613015663266 Loansgranted5269146611829527613012761301 0 Debtservice40000040000020486020486 Capitaloutlay7342408425681016430101643 Intergovernmental6504000650400041496824149682 0 Totalexpenditures165318721748934999350774034682 5900395 Excess deficiency of revenuesoverexpenditures 8223431 8188340 398261851947391212121 Otherfinancingsources uses Principalpaymentsreceived22090 00220900011608851160885 0 Proceedsofnoteissuance51890005189000341200003412000 Transfersout 115000 115000 115000 4034682 4149682 Totalother financingsources uses 72830007283 00044578855195567 737 682 Netchangeinfundbalance 940431 905340475267 828474439 Fundbalance July1 201015404312138094213809425032140597 Fundbalance June30 20116000001232754261336116752615036 78 CITYOFEUGENE OREGON NotestoRequiredSupplementaryInformation June30 2011 1 ScheduleofFundingProgress OregonPERS OregonPublicEmployeeRetirementSystemsscheduleoffundingprogressfortheCityofEugene Unfunded Unfunded actuarial Actuarial Actuarial Actuarial actuarial accruedliability valuation valueof accrued accruedFunded Covered asapercentage date assets liability liability ratio payrollofcoveredpayroll 123105 579816082 571031263 8784819 102 75604360 12 123107 680846717612554606 68292111 111 85563475 80 123109 5725954466647287899213334386 89005209 104 2 Scheduleof FundingProgress OPEB OtherPost EmploymentBenefitsschedule offundingprogress Unfunded Unfunded actuarial Actuarial Actuarial Actuarial actuarial accruedliability valuation valueof accrued accruedFunded Covered asapercentage date assets liability liability ratio payrollofcoveredpayroll 063007 022854225228542250 75075500 30 063009013418783134187830 90674405 15 0630110950264295026420 91224907 10 TheCitysotherpostemploymentbenefits includeretireehealthcareandwaiveroflifeinsurancepremiums for disabledemployees Theactuarialcostmethodforretireehealthcare benefitsisentryagenormal thecost methodforwaiveroflifeinsurancepremiumsfordisabledemployeesisprojectedunit cost 79 CITYOFEUGENE OREGON NotestoRequiredSupplementaryInformation 3 BudgettoGAAPReconciliation SectionsofOregonRevisedStatutes OregonBudgetLaw requiremosttransactionsbebudgetedonthe modifiedaccrual basisofaccounting However therearecertaintransactionswherestatutorybudget requirementsconflictwithgenerallyacceptedaccountingprinciples GAAP Thefollowingdiscussesthe differencesbetweenthebudgetbasisa ndGAAPbasisofaccountingfortheGeneralFundandtheCommunity DevelopmentFund Community GeneralDevelopment Netchangeinfundbalance budgetbasis 5835719475267 Budgetresourcesnotqualifyingasrevenuesorotherfina ncing sourcesunderGAAP Indirectandothercostreimbursementsreceivedarereportedasrevenues orotherfinancingsourcesonabudgetbasis Suchreceiptsare reclassifiedasareductionofexpendituresonaGAAPbasis 8137419 0 Revenues andotherfinancingsourcesrequiredbyGAAPnot qualifying asbudgetresources Adjustmentforfairvalueofinvestmentsatyearendisreportedas miscellaneousrevenueonaGAAPbasis Suchrevenuesarenot reflectedonaBudgetbasis 26446 828 Budgetexpendituresnotqualifyingasexpendituresorother financingusesunderGAAP Indirectandothercostsreimbursedarereportedasexpendituresona budgetbasis Suchdisbursementsarereclassifiedasareductionof revenuesandotherfinancingsourcesonaGAAPbasis 81374190 Prepaidexpensesarerecordedintheyearpaidonabudgetbasis However suchexpensesarematchedtotheaccountin gperiodbenefited underGAAP 3300880 Netchangeinfundbalance GAAPbasis 6139361 474439 Principal paymentsreceivedof 1160885andloansgrantedof 2761301arereportedintheCommunity DevelopmentFundasotherfinanci ngsourcesandnondepartmental expenditures respectively Suchamounts havebeenreclassifiedasrevenuesanddepartmentalexpendituresonaGAAPbasis Inaddition indirectcost reimbursementsarereclassifiedfromtransf erstodepartmentaladministrativeexpendituresonaGAAPbasis Suchreclassificationsarenotincludedintheaboveschedule 80 OTHERSUPPLEMENTARYINFORMATION NONMAJORGOVERNMENTALFUNDS COMBININGSTATEMENTS CityofEugene Oregon B1 CombiningBalanceSheet NonmajorGovernmental Funds June30 2011 amountsindollars Total SpecialDebtCapitalOther RevenueServiceProjectsGovernmental FundsFundsFundsFunds Assets Equityinpooledcashandinvestments2093729616766211100775933621676 Receivables Interest533521285940181946 Taxes21569582757601043271 Accounts91243300912433 Assessments1559209338482471291336897 Loansandnotes30715650310693102634 Allowance for uncollectibles 55 741 00 55741 Duefromothergovernments19651598451412534593303132 Inventories61555500615555 Prepaidsanddeposits717900071790 Assetsheldforresale0154118674971869038 Totalassets2794302436526941440691346002631 Liabilitiesandfundbalances Liabilities Accountspayable438980826617267882174034 Wagespayable75182400751824 Duetoothergovernments337466043682381148 Deposits13240857326858650 Deferredrevenue375810218304322784635866997 Totalliabilities52876961838698290625910032653 Fundbalances Nonspendable7673451541186749726 36383 Restricted117981501812455846573422076339 Committed100898330116742311257256 Totalfundbalances2265532818139961150065435969978 Total liabilitiesandfundbalances2794302436526941440691346002631 81 CityofEugene Oregon B2 CombiningStatementofRevenues Expenditures andChanges inFundBalances NonmajorGovernmental Funds ForthefiscalyearendedJune30 2011 amountsindollars Total SpecialDebtCapitalOther RevenueServiceProjectsGovernmental FundsFundsFundsFunds Revenues Taxes342880815455883311888222003573 Licensesandpermits105834160010583416 Intergovernmental86752240433924313014467 Rentalincome18840900 188409 Chargesforservices511898001232075242187 Finesandforfeits650100065010 Specialassessments140901813319048311100252 Repaymentofrevolvingloans25902200259022 Miscellaneous2200821115400741972390418 Totalrevenues3053378015752614856036054846754 Expenditures Current departmental Centralservices3964183003964183 Fireandemergencymedicalservices22854600228546 Library recreation andculturalservices4126 589004126589 Planninganddevelopment108956520010895652 Police2357721002357721 Publicworks9356878009356878 Debtservice Principal011957801011957801 Interest01495632233021518934 Issuancecosts044116658050 696 Capitaloutlay15780401559443315752237 Contributionoflandheldforresale53892900538929 Intergovernmental0800000008000000 Totalexpenditures31626302214975491562431568748166 Excess deficiency of revenuesoverexpenditures 1092522 5744935 7063955 13901412 Otherfinancingsources uses Proceedsofdebtissuance07900000739000015290000 Transfersin459609307375285333621 Transfersout 1510 528 6038410 07548938 Totalother financingsources uses 30855651861590812752813074683 Netchangeinfundbalances199304338833451063573826729 Fundbalances July1 20102066228556973411043708136796707 Fundbalances June30 20112265532818139961150065435969978 82 SPECIALREVENUEFUNDS Combining statementsforallindividualnonmajorspecialrevenuefundsarereportedhere Thecombinedtotalsare reportedinthecombiningnonmajorgovernmentalfundstatementsatB1andB2 Fundstatementsformajorspecial revenuefundsarereportedinExhibits3and4ofthebasicfinancialstatements Schedulesofrevenues expenditures andchangesinfundbalance budgetandactualarealsopresentedherefor eachindividualnonmajorspecialrevenuefund Budgetandactualcomparisonsformajorspecialrevenuefundsare reported asrequired supplementaryinformationatA2 MajorSpecialRevenueFund CommunityDevelopmentFund Toaccount forgrantrevenuesreceivedfromtheFederalgovernment Major expendituresincludecapitalimprovementsbenefitinglowincomepersonsandcommunity developmentloans Nonmajor SpecialRevenueFunds ConstructionandRentalHousingFund Toaccount for constructionpermitservicesandrentalhousingcode feesrelatedtoallpropertieswithinthecitylimitsandtheurbangrowthboundaryincludingcompliancewith applicablelawsandregulations LibraryLocalOptionLevyFund Toaccount forrevenuesreceivedfromafouryearlibrarylocaloptionlevyto enhanceservicesatthemainlibrary operatetwobranchlibraries andfurnishthemainl ibrary Library Parks andRecreationFund Toaccountforcontributionsfromprivatedonorsto supportthepublic libraryandCityownedparksandrecreationfacilities PublicSafetyAnswering PointFund Toaccount foroperationsoftheemergencydispatchcenter Resources areprimarilyfromtelephoneexcisetaxesandintergovernmentalrevenue RoadFund ToaccountfortheoperationandmaintenanceoftheCitysstreet transportationsyste m ResourcesareprovidedfromtheCitysshareofStateHighwayTrustFundallocations StateOTIAIIImonies feesandpermits andothermiscellaneousgrants SolidWaste andRecyclingFund Toaccount forbusinesslicenserevenue swhichareusedto regulatesolid wasteandrecyclinghaulersandprovidecommunityeducation SpecialAssessmentManagementFund Toaccount foroperationsofthepropertymanagementand assessmenthardshipdeferralprograms Telecom RegistrationandLicensingFund Toaccount forregistrationfeesandbusinessprivilegetaxes collectedfrom collectedfrom providersoftelecommunicationservicesinEugene Resourcesareusedforprogram administrationandtelecom projectsthatbenefitthecommunity UrbanRenewalAgencyFund Toaccount foradministrationoftheUrbanRenewalAgency UrbanRenewalAgencyRiverfrontFund Toaccountforrevenuesreceivedfroman advalorem taxonproperty locatedintheRiverfrontResearchPark Resourcesareusedfor improvingtheconditionandappearanceofthe RiverfrontResearchPark 83 84 CityofEugene Oregon C3 ConstructionandRentalHousingFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licensesandpermits2724900285698202856982 Chargesforservices369388036713604549343216426 Finesandforfeits7025064110064110 Miscellaneous42450024942 3685 21257 Totalrevenues691353066173944586196158775 Expenditures Current departmental Centralservices00793000793000 Fireandemergencymedicalservices2850222285460228546 Planninganddevelopment4852845439 406296464403708 Publicworks4009742924620292462 Intergovernmental1100000454934454934 0 Totalexpenditures663884153700043477125717716 Excess deficiency of revenuesoverexpenditures27468912473908063314410 59 Otherfinancingsources uses Transfersout 793000 7930007930000 Totalother financingsources uses 793000 7930007930000 Netchangeinfundbalance 518311454390 13331441059 Fundbalance July1 201014846141484614155091500123 Fundbalance June30 2011966303193900421781941182 85 CityofEugene Oregon C4 LibraryLocalOptionLevyFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes2583191261625102616251 Rentalincome1800020515020515 Miscellaneous122448980 476 8504 Totalrevenues26134352645746 4762645270 Expenditures Current departmental Library recreation andculturalservices28788002836288183682854656 Totalexpenditures28788002836288183682854656 Excess deficiency of revenuesoverexpenditures 265365 190542 18844 209386 Totalother financingsources uses 0000 Netchangeinfundbalance 265365 190542 18844 209386 Fundbalance July1 201066549266549278352743844 Fundbalance June30 201140012747495059508534458 86 CityofEugene Oregon C5 Library Parks andRecreationFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental1682168201682 Chargesforservices020245020245 Miscellaneous20495401901148 3241 1897907 Totalrevenues20512221923075 3241 1919834 Expenditures Current departmental Library recreation andculturalservices13194421278303 6370 1271933 Capitaloutlay12590931027800102780 Totalexpenditures25785351381083 6370 1374713 Excess deficiency of revenuesoverexpenditures 5273135419923129545121 Totalother financingsources uses 0000 Netchangeinfundbalance 5273135419923129545121 Fundbalance July1 2010274167927416798278274995 7 Fundbalance June30 201122143663283671114073295078 87 CityofEugene Oregon C6 PublicSafetyAnsweringPointFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental8590007887150788715 Chargesforservices1951681171586801715868 Miscellaneous2607313803138 Totalrevenues2813288250772102507721 Expenditures Current departmental Centralservices00150000150000 Police2663288235772102357721 Totalexpenditures266328823577211500002507721 Excess deficiency of revenuesoverexpenditures1500001500001500 00 0 Otherfinancingsources uses Transfersout 150000 1500001500000 Totalother financingsources uses 150000 1500001500000 Netchangeinfundbalance0000 Fundbalance July1 20100000 Fundbalance June30 20110000 88 CityofEugene Oregon C7 RoadFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licensesandpermits1462000169159101691591 Intergovernmental8081579787787407877874 Rentalincome4280168272068272 Chargesforservices10184237173037173 Miscellaneous128084121588 652120936 Totalrevenues98163069796498 6529795846 Expenditures Current departmental Centralservices00751000751000 Publicworks10115209906441609064416 Totalexpenditures1011520990644167510009815416 Excess deficiency of revenuesoverexpenditures 298903 732082751652 19570 Otherfinancingsources uses Transfersin2000002000000200000 Transfersout 751000 7510007510000 Totalother financingsources uses 551000 551000751000200000 Netchangeinfundbalance 849903181082 652180430 Fundbalance July1 2010194205819420586189332560991 Fundbalance June30 2011109215521231406182812741421 89 CityofEugene Oregon C8 SolidWasteandRecyclingFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licensesandpermits6063636199110619911 Intergovernmental0695306953 Chargesforservices700556205562 Finesandforfeits09000900 Miscellaneous900015386 896 14490 Totalrevenues616063648712 896647816 Expenditures Current departmental Centralservices005000050000 Planninganddevelopment9672136357130635713 Totalexpenditures96721363571350000685713 Excess deficiency of revenuesoverexpenditures 351150 12999 50896 37897 Otherfinancingsources uses Transfersout 50 000 50000 500000 Totalother financingsources uses 50 000 50000 500000 Netchangeinfundbalance 401150 37001 896 37897 Fundbalance July1 20108371528371522682839834 Fundbalance June30 20114360028001511786801937 90 CityofEugene Oregon C9 SpecialAssessmentManagementFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Chargesforservices1016201104760110476 Specialassessments001409014090 Miscellaneous3080026230 1482 24748 Totalrevenues13242013670612608149314 Expenditures Current departmental Centralservices8511070294621576509 Totalexpenditures8511070294621576509 Excess deficiency of revenuesoverexpenditures4731066412639372805 Otherfinancingsources uses Principalpaymentsreceived1250014090 14090 0 Loans deferredassessments 120000 3216 32160 Transfersin120000000 Transfersout 153000 210528 3000207528 Totalother financingsources uses 140500 199654 7874 207528 Netchangeinfundbalance 93190 133242 1481 134723 Fundbalance July1 20101376854137685435411380395 Fundbalance June30 20111283664124361220601245672 91 CityofEugene Oregon C10 TelecomRegistrationandLicensingFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licensesandpermits2900000541493205414932 Miscellaneous3500061295 2050 59245 Totalrevenues29350005476227 2050 5474177 Expenditures Current departmental Centralservices46636502023939847352108674 Capitaloutlay15771055024055024 Totalexpenditures48213602078963847352163698 Excess deficiency of revenuesoverexpenditures 18863603397264 867853310479 Otherfinancingsources uses Transfersout 1387 000 1387000 840001303000 Totalother financingsources uses 1387 000 1387000 840001303000 Netchangeinfundbalance 32733602010264 2785 2007479 Fundbalance July1 201050915745091574190795110653 Fundbalance June30 201118182147101838162947118132 92 CityofEugene Oregon C11 UrbanRenewalAgencyGeneralFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental650400041496824149682 0 Rentalincome036622036622 Chargesforservices200013230013230 Repaymentofrevolvingloans00259022259022 Miscellaneous4600017386 2867 14519 Totalrevenues655200042169203893527323393 Expenditures Current departmental Centralservices001750017500 Planninganddevelopment53000025154154766975728238 Loansgranted830255854941975494197 0 Contributionoflandheldforresale00538929538929 Totalexpenditures883255857457385389296284667 Excess deficiency of revenuesoverexpenditures 2280 558 1528818 4432456 5961274 Otherfinancingsources uses Principalpaymentsreceived50000259022 259022 0 Transfersin53000024641141496824396093 Totalother financingsources uses 58000050543338906604396093 Netchangeinfundbalance 1700558 1023385 541796 1565181 Fundbalance July1 2010170055817005585433992243957 Fundbalance June30 201106771731603678776 93 CityofEugene Oregon C12 UrbanRenewalAgencyRiverfrontFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes7800008125570812557 Rentalincome063000063000 Miscellaneous2500037956 1879 36077 Totalrevenues805000913513 1879911634 Expenditures Current departmental Centralservices001750017500 Planninganddevelopment267500145493 17500127993 Totalexpenditures2675001454930145493 Excess deficiency of revenuesoverexpenditures537500768020 1879766141 Totalother financingsources uses 0000 Netchangeinfundbalance537500768020 1879766141 Fundbalance July1 20103524486352448680453532531 Fundbalance June30 20114061986429250661664298672 94 DEBTSERVICEFUNDS NoneoftheCitysdebtservicefundsmeetthecriteriaformajorfundreporting Therefore thecombiningstatements forallindividualdebtservice fundsarereportedhere Thecombinedtotalsarereportedinthe combiningnonmajor governmentalfundstatementsatB1andB2 Schedulesofrevenues expenditures andchangesinfundbalance budgetandactualarealsopresentedherefor eachindividualdebtservicefund Nonmajor DebtServiceFunds General ObligationDebtServiceFund Toaccountfortheaccumulationofresourcesfor andthepaymentof general obligationindebtednessoftheCity excludingdebtaccountedforasproprietaryfundorspecia l assessment debt Thedebtserviceisfinancedthroughpropertytaxesandinterestincome LibraryDebtServiceFund Toaccount fordebtservicetoconstructanewlibrary Thedebtserviceisfinanced throughtaxincrementreven uesfromtheUrbanRenewalAgencyDebtServiceFund SpecialAssessmentBondDebtServiceFund Toaccountforspecialassessmentreceivablesandthe servicing oftherelatedbondeddebt Thedebtservice isfinancedthroughspecia lassessmentprincipaland interestcollectionsandinterestincome UrbanRenewalAgencyDebtServiceFund Toaccount fortheaccumulationoftaxincrementresourcesand paymentof TaxIncrementBonds CityofEugene Oregon D1 CombiningBalanceSheet NonmajorDebtServiceFunds June30 2011 amountsindollars SpecialUrban GeneralAssessmentRenewal ObligationBondAgencyTotal Assets Equityinpooledcashandinvestme nts8913524129643723051676621 Receivables Interest91851036743128594 Taxes6940900133486827576 Assessments09338480933848 Duefromothergovernments7056701394784514 Assetsheldforresale0154101541 Totalassets174786013483535564813652694 Liabilitiesandfundbalances Liabilities Accountspayable0826608266 Deferredrevenue7859418742621702291830432 Totalliabilities7859418825281702291838698 Fundbalances Nonspendable0154101541 Restricted9619194642843862521812455 Totalfundbalances9619194658253862521813996 Total liabilitiesandfundbalances174786013483535564813652694 95 CityofEugene Oregon D2 CombiningStatementofRevenues Expenditures andChangesinFundBalances NonmajorDebtServiceFunds ForthefiscalyearendedJune30 2011 amountsindollars SpecialUrban GeneralAssessmentRene wal Obligation LibraryBondAgencyTotal Revenues Taxes1359629000185959315455883 Specialassessments001813310181331 Miscellaneous4962902445641315115400 Totalrevenues136459190205787190090815752614 Expenditures Debtservice Principal118302500127551011957801 Interest147351102212101495632 Issuancecosts00162652785144116 Intergovernmental00080000008000000 Totalexpenditures133037610165937802785121497 549 Excess deficiency of revenuesoverexpenditures3421580398506126943 5744935 Otherfinancingsources uses Proceedsofdebtissuance00079000007900000 Transfersout039915 05998495 6038410 Totalother financingsources uses 039915 019015051861590 Netchangeinfundbalances34215839915398504225438 3883345 Fundbalances July1 20106197613991542597546116905697341 Fundbalances June30 201196191904658253862521 813996 96 CityofEugene Oregon D3 GeneralObligationDebtServiceFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes1327680813596290013596290 Miscellaneous2700051591 1962 49629 Totalrevenues1330380813647881 196213645919 Expenditures Debtservice1330380813303761013 303761 Totalexpenditures1330380813303761013303761 Excess deficiency of revenuesoverexpenditures0344120 1962342158 Totalother financingsources uses 0000 Netchangeinfundbalance0344120 1962342158 Fundbalance July1 201060932360932310438619761 Fundbalance June30 20116093239534438476961919 97 CityofEugene Oregon D4 LibraryDebtServiceFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Miscellaneous100000 Totalrevenues100000 Expenditures Totalexpenditures0000 Excess deficiency of revenuesoverexpenditures100000 Otherfinancingsources uses Transfersout 39 852 39826 89 39915 Totalother financingsources uses 39 852 39826 89 39915 Netchangeinfundbalance 39 752 39826 89 39915 Fundbalance July1 201039826398268939915 Fundbalance June30 201174000 98 CityofEugene Oregon D5 SpecialAssessmentBondDebtServiceFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Specialassessments00181331181331 Miscellaneous6450024851 395 24456 Totalrevenues6450024851180936205787 Expenditures Debtservice400000165937016593 7 Totalexpenditures4000001659370165937 Excess deficiency of revenuesoverexpenditures 335500 14108618093639850 Otherfinancingsources uses Principalpaymentsreceived344800181331181331 0 Transfersout 20 000 000 Totalother financingsources uses 324800181331181331 0 Netchangeinfundbalance 10 700 40245 395 39850 Fundbalance July1 20104248724248721103425975 Fundbalance June30 2011414172465117708465825 99 CityofEugene Oregon D6 UrbanRenewalAgencyDebtServiceFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes1920000185959301859593 Miscellaneous2500046409 5094 41315 Totalrevenues19450001906002 5094 1900908 Expenditures Debtservice15000027851027851 Intergovernmental132610001325208452520848000000 Totalexpenditures134110001327993552520848027851 Excess deficiency of revenuesoverexpenditures 11466000 113739335246 9906126943 Otherfinancingsources uses Proceedsofdebtissuance7900000790000007900000 Transfersout 1030000 746411 5252084 5998495 Totalother financingsources uses 6870000715358952520841901505 Netchangeinfundbalance 4596 000 4220344 5094 4225438 Fundbalance July1 201045990604599060126304611690 Fundbalance June30 201130603787167536386252 100 CAPITALPROJECTSFUNDS Combiningstatementsforallindividualnonmajorcapitalprojectsfundsarereportedhere Thecombinedtotalsare reportedinthecombiningnonmajorgovernmental fundstatementsatB1andB2 Fundstatementsformajorcapital projectsfundsarereportedinExhibits3and4ofthebasicfinancial statements Schedulesofrevenues expenditures andchangesinfundbalance budgetandactualarealsopresentedherefor each individualcapitalprojectsfund MajorCapitalProjectsFunds GeneralCapitalProjects Fund Toaccount forthefinancing andconstructionofcapitalfacilitiesnotfinanced byproprietaryorothercapitalprojects funds GeneralFundrevenues FederalandStategrants donations and bond proceedsprovidethefinancing fortheexpendituresofthisfund SystemsDevelopmentCapitalProjectsFund Toaccountforconstructionofthenonasses sableportionof capacity enhancingcapitalprojects Financingis providedbyasystemsdevelopmentchargeleviedagainst developingproperties Expendituresarerestricted bystatelawtocapacity enhancingprojectsfort hefollowing systems transportation sanitarysewers stormsewers andparks facilities Nonmajor CapitalProjectsFunds SpecialAssessmentCapitalProjectsFund Toaccountfortheinterimfinancingandrelatedcostsof constructionforpublicimprovementswhichprimarilybenefitthepropertyownersagainstwhoseproperties specialassessmentsarelevied Constructionperiodfinancingis obtainedthroughissuance ofbond anticipationnotes andthedebtservicethereonisfinancedthroughspecial assessmentcollections proceeds oflongtermbondeddebt andinterestoninvestments TransportationCapitalProjectsFund Toaccountforrevenuesf romdedicatedsourcesandrelated nondevelopmenttransportationcapitalprojectexpenditures Revenuesaregeneratedprimarilyfroma 005 pergallonlocalmotorvehiclefuel tax transportationgrants andthe2008StreetBon d Urban RenewalAgencyCapitalProjectsFund Toaccount forcostsofconstructingandimprovingcapital facilities intheDowntownDistrict FinancingisprovidedbytransfersfromtheUrbanRenewalAgencyFundand interestoninvestments UrbanRenewalAgencyRiverfrontCapitalProjects Fund Toaccount forcostsofconstructingandimproving capitalfacilitiesintheRiverfrontDistrict Financingisprovidedbytransfersfrom theUrbanRenewalAgency RiverfrontFundandinterestoninvestments CityofEugene Oregon E1 CombiningBalanceSheet NonmajorCapital ProjectsFunds June30 2011 amountsindollars Urban UrbanRenewal SpecialRenewalAgency Assessment TransportationAgencyRiverfrontTotal Assets Equityinpooledcash andinvestments20250148078471740531163 74311007759 Receivables Assessments247129000247129 Loansandnotes3106900031069 Duefromothergovernments01253459001253459 Assetsheldforresale2650018672321867497 Totalassets23034779331930740531203097514406913 Liabilitiesandfundbalances Liabilities Accountspayable01726788001726788 Duetoothergovernments0436820043682 Deposits857326000857326 Deferredrevenue278463000278463 Totalliabilities11357891770470002906259 Fundbalances Nonspendable2650018672321867497 Restricted075614607405311637438465734 Committed116742300011 67423 Totalfundbalances11676887561460740531203097511500654 Totalliabilitiesandfundbalances23034779331930740531203097514406913 101 CityofEugene Oregon E2 CombiningStatementofRevenues Expenditures andChangesinFundBalances NonmajorCapital ProjectsFunds ForthefiscalyearendedJune30 2011 amountsindollars Urban UrbanRenewal SpecialRenewalAgency AssessmentTransportationAgencyRiverfrontTotal Revenues Taxes03118882003118882 Intergovernmental04339243004339243 Chargesforservices118764444300123207 Specialassessments9048310009 04831 Miscellaneous37201333402266139074197 Totalrevenues10607967495908226613908560360 Expenditures Debtservice Interest2330200023302 Issuancecosts35583022006580 Capitaloutlay545699150487340015594433 Totalexpenditures572559150517560015624315 Excess deficiency of revenuesoverexpenditures4882377555848 226613907063955 Otherfinancingsources uses Proceedsofdebtissuance5800006810000007390000 Transfersin207528300005000000737528 Totalother financingsources uses 787528684000050000008127528 Netchangeinfundbalances127576571584850226613901063573 Fundbalances July1 2010 108077827730823826520295 8510437081 Fundbalances June30 201111676887561460740531203097511500654 102 CityofEugene Oregon E3 GeneralCapitalProjectsFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental2510693892460389246 Rentalincome20000000 Miscellaneous350001165084788121296 Totalrevenues3060695057544788510542 Expenditures Current departmental Centralservices10000987209872 Debtservice50000000 Capitaloutlay30278340574891205748912 Totalexpenditures30338340575878405758784 Excess deficiency of revenuesoverexpenditures 30032271 5253030 47885248242 Otherfinancingsources uses Principalpaymentsreceived8500000 Proceedsofdebtissuance15351557247500002475000 Transfersin3369300336930003369300 Totalother financingsources uses 18729357584430005844300 Netchangeinfundbalance 113029145912704788596058 Fundbalance July1 201011827334118273341330011840634 Fundbalance June30 2011524420124186041808812436692 103 CityofEugene Oregon E4 SpecialAssessmentCapitalProjectsFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Chargesforservices01187640118764 Specialassessments00904831904831 Miscellaneous7640039207 2006 37201 Totalrevenues764001579719028251060796 Expenditures Debtservice200000016790341652174 26860 Capitaloutlay14334475456990545699 Totalexpenditures343344722247331652174572559 Excess deficiency of revenuesoverexpenditures 3357047 20667622554999488237 Otherfinancingsources uses Principalpaymentsreceived355000904831904831 0 Proceedsofdebtissuance35911901402857822857580000 Transfersin1500002075280207528 Transfersout 100000 000 Totalother financingsources uses 399619025152161727688787528 Netchangeinfundbalance6391434484548273111275765 Fundbalance July1 2010716435716435824512 108077 Fundbalance June30 20111355578116488927991167688 104 CityofEugene Oregon E5 SystemsDevelopmentCapitalProjectsFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Rentalincome10400097915097915 Chargesforservices2009536228238302282383 Miscellaneous6068399263 3669 95594 Totalrevenues21742192479561 3669 2475892 Expenditures Current departmental Centralservices001500015000 Planninganddevelopment8390467326067326 Publicworks2733221981800198180 Capitaloutlay4498318177981601779816 Totalexpenditures4 8555442045322150002060322 Excess deficiency of revenuesoverexpenditures 2681325434239 18669415570 Otherfinancingsources uses Transfersout 15 000 15000 150000 Totalother financingsources uses 15 000 15000 150000 Netchangeinfundbalance 2696325419239 3669415570 Fundbalance July1 201053232275323227119945335221 Fundbalance June30 20112626902574246683255750791 105 CityofEugene Oregon E6 TransportationCapitalProjectsFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes2940000311888203118882 Intergovernmental8487155433924304339243 Rentalincome30000000 Chargesforservices10000444304443 Miscellaneous4100041853 8513 33340 Totalrevenues115081557504421 8513 7495908 Expenditures Debtservice40000302203022 Capitaloutlay2946357315048734015048734 Totalexpenditures2950357315051756015051756 Excess deficiency of revenuesoverexpenditures 17995418 7547335 8513 7555848 Otherfinancingsources uses Proceedsofdebtissuance10848928681000006810000 Transfersin3000030000030000 Totalother financingsources uses 10878928684000006840000 Netchangeinfundbalance 7116490 707335 8513 715848 Fundbalance July1 201082621158262115151938277308 Fundbalance June30 20111145625755478066807561460 106 CityofEugene Oregon E7 UrbanRenewalAgencyCapitalProjectsFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Miscellaneous10002249172266 Totalrevenues10002249172266 Expenditures Capitaloutlay734593000 Totalexpenditures734593000 Excess deficiency of revenuesoverexpenditures 733593 2249172266 Otherfinancingsources uses Transfersin5000005000000500000 Totalother financingsources uses 5000005000000500000 Netchangeinfundbalance 2335935022491750226 6 Fundbalance July1 2010237918237918347238265 Fundbalance June30 20114325740167364740531 107 CityofEugene Oregon E8 UrbanRenewalAgencyRiverfrontCapitalProjectsFund ScheduleofRevenues Expenditures andChangesinFundBalance BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Miscellaneous10001530 140 1390 Totalrevenues10001530 140 1390 Expenditures Capitaloutlay141500000 Totalexpenditures141500000 Excess deficiency of revenuesoverexpenditures 140500 1530 140 1390 Totalother financingsources uses 0000 Netchangeinfundbalance 140500 1530 140 1390 Fundbalance July1 201016196516196518676202029585 Fundbalance June30 20112146516349518674802030975 108 ENTERPRISEFUNDS All oftheCitysenterprisefundsmeetthecriteria formajorfundreportingandarereportedinExhibits6 7 and8of thebasicfinancialstatements Schedulesofrevenues expenses andchangesinfundnetassets budgetandactualarepresented hereforeach individualenterprisefund MajorEnterpriseFunds AmbulanceTransportFund Toaccountfortheoperationsofemergencymedicalservicesprovidedtothe public Revenuesareprovide dbyusercharges MunicipalAirportFund Toaccount fortheoperationsofthemunicipalairport Principalsourcesof revenues arerentalofterminalspacetoairlinesandotherserviceproviders landingfees andparkingfees Thefund receivesAirportImprovementProgrammoniesfromtheFederalAviationAdministrationforcapital improvements The fundalsoimposespassengerfacilitychargesonpassengersutilizingtheairport the proceedsofwhicharerestrictedforuseinfinancingeligibleprojects asdeterminedbyregulation ParkingServicesFund ToaccountforoperationsofCityownedparkingfacilities Revenuesources include parkingfeesandfines meterreceipts andrentals Therevenueisusedto operateandmaintaintheparking facilities StormwaterUtilityFund Toaccountfortheoperation construction andmaintenanceofthestormwater drainagesystemandthewetland resourceprotectionandenhancement program Primary revenuesare stormwateruserfeesandthesale ofwetlandmitigationcredits WastewaterUtilityFund Toaccountfortheoperation construction andmaintenanceofthewastewater collectionandtreatmentsystem Primaryrevenuesarewastewateruserfees CityofEugene Oregon F1 AmbulanceTransportFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental09281 9281 0 Chargesforservices6209227723430407234304 Miscellaneous6495577706132179027 Totalrevenues62741827321291 79607313331 Expenses Current departmental Centralservices00547000547000 Fireandemergencymedical services59026335224117 363605187757 Depreciation004530445304 Totalexpenses590263352241175559445780061 Excess deficiency of revenuesoverexpenses37154920971745639041533270 Otherfinancingsources uses Transfersin450000000 Transfersout 895615 895615547000348615 Totalother financingsources uses 445615 895615547000348615 Changein netassets 740661201559 169041184655 Totalnetassets July1 20108504418504416451801495621 Totalnetassets June30 201177637520520006282762680276 109 CityofEugene Oregon F2 MunicipalAirportFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental1121732942517924244963 6829 Rentalincome3203419329452003294520 Chargesforservices4283341462463604624636 Finesandforfeits8000749407494 Miscellaneous97061164357 39299125058 Totalrevenues188091501234279942842628058537 Expenses Current departmental Centralservices00483000483000 Fireandemergencymedicalservices737307678087 2093675994 Police419422402766116402882 Publicworks50876495082071484525130523 Capitaloutlay1421996933436763343676 0 Depreciation0044836644483664 Totalexpenses204643479506600166946311176063 Excess deficiency of revenues overexpenses 165519728361995953725 3117526 Otherfinancingsources uses Principalpaymentsreceived6506065503 65 503 0 Capitalcontributions0042744764274476 Transfersout 483000 4830004830000 Totalother financingsources uses 417940 41749746919734274476 Changein netassets 2073137241870212617521156950 Totalnetassets July1 20101282378612823786809499069377369 2 Totalnetassets June30 201110750649152424887968815494930642 110 CityofEugene Oregon F3 ParkingServicesFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental555487554636305252084211546 Rentalincome540000517722 450517272 Chargesforservices3333130356314503563145 Finesandforfeits11915009641930964193 Miscellaneous2300016937 3410 13527 Totalrevenues106425051052562752559445269683 Expenses Current departmental Centralservices354120306120255118561238 Planninganddevelopment320900433251566375433962699 Publicworks7361583252083252 Debtservice526150752520844939053313031 Capitaloutlay129000012166001216600 0 Depreciation00798113798113 Amortization001163311633 Totalexpenses101882461018321244532465729966 Excess deficiency of revenuesoverexpenses454259342415802698 460283 Otherfinancingsources uses Transfersin0052520845252084 Transfersout 2124300 21243002550001869300 Totalother financingsources uses 2124300 212430055070843382784 Changein netassets 1670041 178188547043862922501 Totalnetassets July1 2010199902719990271386886515867892 Totalnetassets June30 20113289862171421857325118790393 111 CityofEugene Oregon F4 StormwaterUtilityFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licensesandpermits11250085211085211 Intergovernmental2581755933803856619 77184 Rentalincome2728828540028540 Chargesforservices1246620112610429 40012610029 Miscellaneous6869098704 5190 93514 Totalrevenues152564341375668786220912894478 Expenses Current departmental Centralservices00883000883000 Publicworks120535421084810617205411020160 Capitaloutlay79749 7821311782131178 0 Depreciation0013775371377537 Intergovernmental15000400 400 0 Totalexpenses200435201297968430101313280697 Excess deficiency of revenues overexpenses 4787086 7770031163222 386219 Otherfinancingsources uses Capitalcontributions0011053001105300 Transfersout 883000 8830008830000 Totalother financingsources uses 883000 88300019883001105300 Changein netassets 5670086 105997825078719081 Totalnetassets July1 2010842937984293794639684854826227 Totalnetassets June30 2011275929383233824722192655545308 112 CityofEugene Oregon F5 WastewaterUtilityFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental07650 7650 0 Rentalincome1860040292040292 Chargesforservices4220510639817188 19805486 20011702 Finesandforfeits2500335003350 Miscellaneous5000089702 451 89251 Totalrevenues42276206399581821981358720144595 Expenses Current departmental Centralservices0014090001409000 Publicworks18281528164563096798116524290 Capitaloutlay351529912966881296688 0 Depreciation0036946403694640 Intergovernmental211550001980548719805487 0 Totalexpenses4295182737558484 15930554 21627930 Excess deficiency of revenues overexpenses 67562123996983883033 1483335 Otherfinancingsources uses Capitalcontributions00560076560076 Transfersout 1409000 140900014090000 Totalother financingsources uses 1409000 14090001969076560076 Changein netassets 2084621 9906981913957 923259 Totalnetassets July1 2010307506330750639641848799493550 Totalnetassets June30 201199044240657619450453098570291 113 thispageintentionallyleftblank 114 INTERNALSERVICEFUNDS Combiningstatementsforallinternalservice fundsarereportedhere The combinedtotalsarereportedalongsidethe individual enterprisefundsinExhibits6 7 and8ofthebasicfinancialstatements Schedules ofrevenues expenses andchangesinfundnetassets budgetandactualarealsopresentedherefor eachindividualinternalservicefund Nonmajor InternalServiceFunds FacilitiesServicesFund Toaccount forfacilitymaintenanceservicesonCitybuildings Facilitymaintenance rates andrentalratesarechargedonthebasis ofsquarefootageandaresettorecoverthefullcostofservices provided FleetServicesFund Toaccountforthepurchaseof vehiclesandequipmentandthemaintenancethereon Fleetuserchargescovervehicleandequipmentmaintenanceexpensesaswell asthereplacementofvehicles andequipmentsoldorremovedfromuse InformationSystemsandServicesFund Toaccountfordataprocessingandreproduction equipment acquisition andmaintenance postage telephone minutes recording andprintinggraphicservicesprovidedto otherCityfunds Userchargescoverthecostofoperationsandsupplies ProfessionalServicesFund Toaccountforengineeringservicesperformedbypublicworkspersonnelfor otherCityfunds Revenuesareprovidedbychargesfor theseservices RiskandBenefitsFund Toaccount forcostsoftheCitysself insuranceprogram TheCityisself insuredfor workers compensation unemploymentcompensation generalliability andemployeemedical anddental insurance An actuarialvaluation isthebasis forrecordingtheclaimsliability Userchargesarebasedon actual experienceoranestimate dependingonthenature oftheinsurance Thisfundalsoaccountsforthe accumulationofresourcesforandpaymentoftheCityspensionbondsandotherpostemployment benefits CityofEugene Oregon G1 CombiningStatementofNetAssets AllInternal ServiceFunds June30 2011 amountsindollars Information FacilitiesFleetSystemsandProfessionalRiskand Assets ServicesServicesServicesServ icesBenefitsTotal Currentassets Equityinpooledcashandinvestments10900 764154715325 73938930974702347180958680 964 Receivables Accounts05256011772153984171012 Allowanceforuncollectibles000220 0220 Duefromothergovernments985368568022202762092539306595 Inventories0352154000352154 Prepaidsanddeposits00003098130981 Totalcurrentassets1099930015914622574160931366422374931359541486 Noncurrentassets Deferredcharges5726000471028476754 Pensionassets00005814799158147991 Capitalassets Land0455834000455834 Improvementsotherthanbuildings05191300051913 Buildingsandequipment411328839566 9562213642234423799546136304 Constructioninprogress21503220334000241837 Accumulateddepreciation 1258296 22634096 1874888 168086 1333 25936699 Totalnoncurrent assets28822211766094133875466337586256817 9573934 Totalassets13881521335755636080363320297982374994139115420 Liabilities Currentliabilities Accountspayable198921359343361335776459737987100 Wagespayable226548154383190941258779106787937438 Compensatedabsencespayable25157315461814854920085963778819377 Duetoothergovernments11821801857900136797 Claimspayable00001091660910916609 Deposits13800008692988309 Interestpayable5394000276198281592 Unearnedrevenue25273032600000351273 Certificatesofparticipationpayable1400000000140000 Bondspayable0000844099844099 Total currentliabilities96730766834410454044674021235413715502594 Noncurrentliabilities Compensatedabsencespayable02789003816940958 Certificatesofparticipationpayable103500000001035000 Bondspayable netofunamortizeddiscountpremium 00006314617863146178 NetOPEBobligation29744510774421795536714763731724 Totalnoncurrentliabilities106474478967442179556685582367953860 Totalliabilities203205167624010528464853577920996083456454 Netassets Investedincapitalassets net ofrelateddebt 17014951766094133875466337666219774189 Unrestricted101479751523838246887632651285315837235884777 Totalnetassets118494703289932350275172717622316503455658966 115 thispageintentionallyleftblank 116 CityofEugene OregonG2 CombiningStatementofRevenues Expenses andChangesinFundNetAssets AllInternal Service Funds ForthefiscalyearendedJune30 2011 amountsindollars Information FacilitiesFleetSystemsand ProfessionalRiskand ServicesServicesServicesServicesBenefitsTotal Operatingrevenues Licensesandpermits0003820382 Intergovernmental119194000156885276079 Rentalincome1016173615880001077761 Chargesforservices87978367774492582510454982383016330258058972 Miscellaneous311625138877594936498298810 Totaloperatingrevenues9 9363198087468583286354986693035668559712004 Operatingexpenses Personnelservices3952553243579221470313967953273155215234881 Contractualservices6419645960316144993055420647183947766 Materialsandsupplies45571020891141644043700591143234373249 Maintenance61424744383 8291441240594582551648375 Utilities25081082625144782833176129293028292 Rent25862024819386813472682621434049 Taxes12546000012546 Insurance74698390191286773924014444991977305 Claims00001996747419967474 Centralbusinessfunctions483 0004190002610005380001580001859000 Depreciation1037402886946111967120615333115247 Totaloperatingexpenses88491529307411574035450663632663490455598184 Operatingincome loss 108716712199439250943230637217814113820 Nonoperatingrevenues expenses Interestrevenue458691233964497325166197781437185 Interestexpense 71126 0004479500 4550626 Amortizationofissuancecosts 1761 00037502 39263 Totalnonoperatingrevenues expenses 27018 12339644973251664319221 4152704 Income loss beforecapital contributionsandtransfers1060149 1096 547 137 482457472 597 440 38884 Capitalcontributions0100371000100371 Transfersin023614070002361407 Changein netassets106014913652311374824574725974402422894 Totalnetassets July1 201010 78932131 53409248900352260150376247453 236072 Totalnetassets June30 201111849470328993235027 5172717622316503455658966 117 118 119 CityofEugene Oregon G4 FacilitiesServicesFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental0119723 529119194 Rentalincome9065968834731327001016173 Chargesforservices8704213879783608797836 Miscellaneous13200094891 45 906 48985 Totalrevenues97428099895923862659982188 Expenses Current departmental Centralservices838748477809564740518255007 Planninganddevelopment270964219516270889490405 Debtservice201708201708130582 71126 Capitaloutlay749913291905291905 0 Depreciation00103740103740 Amortization0017611761 Totalexpenses961006984940854279548922039 Excess deficiency of revenuesoverexpenses13274014018383416891060149 Otherfinancingsources uses Transfersout 483000 4830004830000 Totalother financingsources uses 483000 4830004830000 Changein netassets 3502609188381413111060149 Totalnetassets July1 201095125159512515 127680610789321 Totalnetassets June30 2011916225510431353141811711849470 120 CityofEugene Oregon G5 FleetServicesFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustm entbasis Revenues Intergovernmental04957 4957 0 Rentalincome4300061588061588 Chargesforservices8764395777449207774492 Miscellaneous201504435424 60640374784 Totalrevenues90088998276461 655978210864 Expenses Current departmental Centralservices00419000419000 Police8076153237330323733 Publicworks724492865693348916025677732 Capitaloutlay212472211374211374 0 Depreciation002886946288694 6 Totalexpenses8265015710444122029709307411 Excess deficiency of revenuesoverexpenses74388411720202268567 1096547 Otherfinancingsources uses Capitalcontributions00100371100371 Transfersin197440423614 0702361407 Transfersout 419000 4190004190000 Totalother financingsources uses 155540419424075193712461778 Changeinnetassets2299288311442717491961365231 Totalnetassets July1 20101191295411912954196211 3831534092 Totalnetassets June30 201114212242150273811787194232899323 121 CityofEugene Oregon G6 InformationSystemsandServicesFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Chargesforservices606650061511043260005825104 Miscellaneous6490555184 2452 52732 Totalrevenues613140562062883284525877836 Expenses Current departmental Centralservices646774255189641094235628387 Depreciation00111967111967 Totalexpenses646774255189642213905740354 Excess deficiency of revenues overexpenses 336337687324549842137482 Otherfinancingsources uses Transfersout 261000 2610002610000 Totalother financingsources uses 261000 2610002610000 Changein netassets 597337426324288842137482 Totalnetassets July1 2010473674647367461 532894890035 Totalnetassets June30 2011413940951630701355535027517 122 CityofEugene Oregon G7 ProfessionalServicesFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Licensesandpermits20003820382 Chargesforservices5866449549823805498238 Miscellaneous1400025804 589 25215 Totalrevenues58824495524424 5895523835 Expenses Current departmental Centralservices00538000538000 Publicworks52989844529082 127804516302 Depreciation001206112061 Totalexpenses529898445290825372815066363 Excess deficiency of revenuesoverexpenses58 3465995342 537870457472 Otherfinancingsources uses Transfersout 538000 5380005380000 Totalother financingsources uses 538000 5380005380000 Changeinnetassets45465457342130457472 Totalnetassets July1 2010240857324085731484232260150 Totalnetassets June30 2011245403828659151482932717622 123 CityofEugene Oregon G8 RiskandBenefitsFund Schedule ofRevenues Expenses andChangesinFundNet Assets BudgetandActual ForthefiscalyearendedJune30 2011 amountsindollars Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Intergovernmental134525165978 9093156885 Chargesforservices3046335330163302030163302 Miscellaneous51908013464801112201234279 Totalrevenues3111695831675760112129430 554466 Expenses Current departmental Centralservices275102512599320964116226634371 Debtservice475450047543732748734479500 Depreciation00533533 Amortization003750237502 Totalexpenses322647513074758240 432431151906 Excess deficiency of revenues overexpenses 11477939281781525618 597440 Otherfinancingsources uses Transfersout 158000 1580001580000 Totalother financingsources uses 158000 1580001580000 Changein netassets 1305793 7701781367618 597440 Totalnetassets July1 20108075436807543643129623762474 Totalnetassets June30 20116769643884561456805803165034 124 OTHERSUPPLEMENTARYSCHEDULES CityofEugene OregonH1 ScheduleofPropertyTaxTransactions ForthefiscalyearendedJune30 2011 amountsindollars UncollectedAdjustments Uncollected balancesCurrentinterest andbalances FiscalyearJuly1 2010yearslevydiscountsCollectionsJune30 2011 19650461082407993 18666 600151 2005686310 1631 5706 61294 2006797400 5690 6423 67627 2007147651021986 75601 94036 2008587524049666 447760 189430 200913028800 10308 595258 697314 201032083790 52480 16520961503803 201101010327993198238 951399742694587 Totals60056291010327993188702 979414845908242 Summarybyfundtype GeneralFund 790501144864972 Special RevenueFunds 3436060 215694 DebtServiceFunds 15455310827576 Totals 979414845908242 125 126 127 thispageintentionallyleftblank 128 STATISTICALSECTION ThispartoftheCity ofEugenescomprehensiveannualfinancialreportpresents detailedinformationasacontextfor understandingwhattheinformationinthefinancialstatements notedisclosures andrequired supplementary informationsaysabouttheCitysoverallfinancialhealth FinancialTrends SchedulesI1toI4 TheseschedulescontaintrendinformationtohelpthereaderunderstandhowtheCitysfinancialperforma nce andwellbeinghavechangedovertime RevenueCapacity SchedulesI5to18 TheseschedulescontaininformationtohelpthereaderassessthefactorsaffectingtheCitysabilitytogenerate itspropertytaxes DebtCapacity SchedulesI9toI12 TheseschedulespresentinformationtohelpthereaderassesstheaffordabilityoftheCityscurrentlevelof outstandingdebtandtheCitysabilitytoissueadditionaldebt inthefuture DemographicandEconomicInformation SchedulesI13 I14 Theseschedulesofferdemographicandeconomicindicatorstohelpthereaderunderstandtheenvironment withinwhichtheCitysfinancialactivitiestakeplaceandto helpmakecomparisonsovertimeandwithother governments OperatingInformation SchedulesI15toI17 TheseschedulescontaininformationabouttheCitysoperationandresourcesto helpthereaderunderstand howtheCitysfinancialinformationrelates totheservicestheCityprovidesandtheactivitiesitperforms 129 130 131 thispageintentionallyleftblank 132 133 134 135 136 137 138 CityofEugene Oregon I8 TenPrincipalPropertyTaxpayers Currentyearandsevenyears ago unaudited amountsindollars FY2011FY2004 PercentagePercentage TotaloftotalTotaloftotal assessedassessedassessedassesse d Taxpayervaluevaluevaluevalue PeaceHealth163026794140 26828190031 HynixSemiconductor122377695105 456687935521 ComcastCorporation104004000090 ValleyRiverCenterLLC102444362088 77129592088 CenturyLink formerlyQWEST 58182100050 102625360117 VerizonCommunications54499500047 McKayInvestmentCompany49521935043 18781690021 Northwest NaturalGasCompany47122000041 33742000038 MolecularProbes Inc 37410693032 ChaseVillageLLC33394599029 GuardPublishingCompany 28550287033 TrusJoist Inc 23352650027 MetropolitanLifeInsuranceCompany 18186951021 SHLPFinancingLLC 28476456032 Subtotal771983678665 814361111929 Allothertaxpayers108411779409335 79587366049071 Totaltaxpayers 1161316161810000 877309771510000 Notes a Totalassessedvaluedoesnotincludeexemptions b Reliabletoptentaxpayerinformationis notavailablepriorto FY2004 Therefore theCity willuseFY2004 for comparativepurposesuntilFY2014 c ComcastCorporation VerizonCommunications MolecularProbes Inc andChaseVillageLLCwerenotamong thetoptentaxpayersinFY2004 d GuardPublishingCompany TrusJoist Inc Metropolitan LifeInsuanceCompany andSHLPFinancingLLCwere notamongthetoptentaxpayersinFY2011 e Intaxyear2009 Comcastappealedasignifica ntincreaseintheirtaxableassessedvalue OregonTaxCourtruled infavor ofComcastinAugust2011 theOregonDepartmentofRevenue hasappealedtotheOregonSupremeCourt Iftheappealissuccessful Comcastwouldbe entitledtoarefundofaportionof thecompanys2009and2010 taxes andcouldberemovedfromtheTop TenTaxpayersList Datasource LaneCountyDepartmentofAssessmentandTaxation CityofEugeneFinanceDivision 139 140 CityofEugene Oregon I10 RatioofGeneralBondedDebtOutstanding Lasttenfiscalyears unaudited amountsindollars Generalbondeddebtoutstanding GeneralTaxPercentage obligationCertificatesofincrementofrealmark etPer Fiscal yearbondsparticipationLimitedtaxbondsbondsTotalvaluecapita 2002358650001766500075491461 0129021461121 918 2003420100001600500076053652 0134068652126 942 2004459550001631000076560046 0138825046124 965 2005433000001425000077013970 0134563970108 930 2006411950001207500078291989 0131561989093 900 200739660000978500070659254 0120104254060 808 200840130000736500070504879 0117999879052 768 200940176200484000070211643 0115227843049 745 201035389414216000069672223 0107221637048 683 2011 328441641820000650302817900000107594445051 682 Notes a DetailsregardingtheCitys outstandingdebtcanbefoundinthenotestothefinancialstatements b Alldebt isshownnetofunamortizedpremiumsanddiscounts c PercentageofrealmarketvaluewascalculatedusingpropertyvalueinformationfromScheduleI5 d Debtpercapitawascalculatedusingpopulation datafromScheduleI14 Datasource CityofEugeneFinanceDivision 141 CityofEugene Oregon I11 DirectandOverlappingGovernmentalActivitiesDebt AsofJune30 2011 unaudited amountsindollars PercentageCitysshare Debtapplicableofoverlapping GovernmentalunitoutstandingtotheCity debt CityofEugene1000564421000000 100056442 Less Fundsavailableforprincipalpayment 1426203 CityofEugenenetdirectdebt98630239 JunctionCityWaterControlDistrict24338812100 2945 LaneCommunityCollege99892 098447500 44701714 LaneCounty115034752454300 52260288 LaneEducationServiceDistrict7780000455000 3539900 SchoolDistrict4J155265000775900 120470114 SchoolDistrict1911529842000000 0 SchoolDistrict522080 0000790400 16440320 Totaloverlappingdebt237415281 Totaldirectandoverlappingdebt336045520 Data source OregonStateTreasuryDebtManagementInformationSystem CityofEugeneFinanceDivision 142 143 CityofEugene Oregon I13 DemographicandEconomicStatistics Lasttenfiscalyears unauditedCityofEugeneLaneCounty Personal UnemploymentincomePercapita FiscalyearPopulationratePopulation thousands income 2002140550670 325900849142125966 2003142380750 328150869808126344 2004143910680 329400921372527788 2005144640550 333350998127629841 2006146160480 3360851048314530825 2007148595460 3397401126950832877 2008153690570 3431401167999433522 20091546201010 3458801159458933522 20101571001080 3476901165526433522 2011157845960 3485501169803533562 Notes a Personalincomeinformationisnotava ilablefortheCity b The2009and2010personalincomeforLaneCountywasnotavailableandhasbeen estimatedbymultiplying populationbypercapitalincome c The2009and2010percapitaincomewasnotavailableandhasbeenestim atedtobethesameas2008 d Population isreportedasofJuly1ofeachfiscalyear e UnemploymentratespresentedareannualizedforthecalendaryearthroughFY2008 TheFY2011unemployment rateisasofJuly 2011 themostrecentinformationavailable Datasource PortlandStateUniversitys CenterforPopulationResearchandCensus BureauofEconomicAnalysis USDepartmentofCommerce BureauofLaborStatistics USDepartmentofLabor LaneCountyManagementServices 144 CityofEugene Oregon I14 TenPrincipalEmployers Currentyearandnineyearsago unaudited 20112002 PercentagePercentage oftotaloftotal EmployerEmployeesemploymentEmployeesemployment PeaceHealthMedicalGroup4 212259 4011256 UniversityofOregon4038249 3747239 EugeneSchoolDistrict4J2794172 2044130 LaneCounty2000123 1390089 StateofOregon1967121 868055 USGovernment1717106 000 CityofEugene1380085 1421091 SpringfieldSchoolDistrict1300080 000 LaneCommunityCollege1118069 2000128 Walmart1050065 Albertsons 800 HynixSemiconductor 790 PSCScanning 636041 Total215761329 177071029 Notes a InformationprovidedfortheEugeneSpringfieldMetropolitan ServiceArea b EmployeecountandpercentofemploymentisasofJanuary 1stofeachyear c TheUSGovernment SpringfieldSchoolDistrictandWalmartwerenotamong thetoptenemployersinFY2002 d Albertsons HynixandPSCScanningwerenotamongthetoptenemployerinFY2011 Datasource EugeneChamberofCommerce OregonEmploymentDepartment LaneCounty FinancialServices CityofEugene 145 CityofEugene Oregon I15 CityGovernmentEmployeesbyFunctionProgram Lasttenfiscalyears unaudited FunctionProgram Library Fireandrecreation emergencyandPlanning CentralmedicalculturalandPublic Fiscalyear servicesservicesservicesdevelopmentPoliceworksTotal 20022251871511012954071366 2003234192159962903921363 2004236195168942933851371 2005227200193912893901390 20062302061901002933891408 20072392041951133034031457 20082382011901123034071451 20092302031901112964101440 2010217204181983063981404 2011210200180943003961380 Notes a ThisschedulewasaddedwiththeimplementationofGASB34 effective withFY2002 b Numberofemployeesisprovided perFullTimeEquivalent FTE for fulltimeandpart timeregularemployees thatareinanACTIVEstatusasofthelastdayofthefiscalyear Datasource CityofEugeneFinanceDivision 146 147 CityofEugene Oregon I17 CapitalAssetStatisticsbyFunctionProgram Lasttenfiscalyears unaudited FiscalYear 2002200320042005200620072008200920102011 FunctionProgram Fireandemergencymedicalservices Ambulances89910101111101010 Firestations10101011111111111111 Fireapparatus25262423242329292929 Library recreation andculturalservices Amphitheatre1111111111 Performingartscenter1111111111 Communitycenters8888888888 9holegolfcourse1111111111 Indooroutdoorpool3333333333 Police Patrolvehicles57605151636365424243 Publicworks Joggingandhikingtrails miles16232727292929282828 Onoffstreetbikingtrails miles115119122122126130132153157157 Parkacreage2400240029022902290231503670367136713987 Streetsmaintained miles501503510511516526538533533533 Alleys miles 43434343424242424242 Sidewalks miles 606616621622633654673700738772 DrainageLines miles 529506525518527567567567601601 Sanitarysewers miles 754754770774781797807813815815 Data source Individual CityDepartments 148 AUDITCOMMENTSANDGOVERNMENT AUDITINGSTANDARDSSECTIONS AUDITCOMMENTS AUDITCOMMENTS CommentsandDisclosuresRequiredbyStateRegulators OregonAdministrativeRules16210000through16210320 oftheMinimumStandardsforAuditsofOregon MunicipalCorporations prescribedbytheSecretaryofS tateincooperationwiththeOregonStateBoardof Accountancy enumeratethefinancialstatements schedules commentsanddisclosuresrequiredinauditreports Therequiredfinancialstatementsandschedulesaresetforthinpr ecedingsectionsofthisreport Required commentsanddisclosuresrelatedtotheauditofsuchstatementsandschedulesaresetforthfollowing 149 thispageintentionallyleftblank 150 INDEPENDENTAUDITORSREPORT REQUIREDBYOREGONSTATEREGULATIONS TotheHonorableMayor Membersofthe CityCouncilandtheCityManager CityofEugene Oregon WehaveauditedthebasicfinancialstatementsofCityofEugene Oregonasofandfortheyear endedJune30 2011 andhaveissuedourreportthereondatedDecember15 2011 We conductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnited StatesofAmericaandGovernme ntAuditingStandards Compliance AspartofobtainingreasonableassuranceaboutwhetherCityofEugenesfinancialstatements arefreeofmaterialmisstatement weperformedtestsofitscompliancewithcertainprovisionsof laws regulations contractsandgrantsincludingprovisionsofOregonRevisedStatutesas specifiedinOregonAdministrativeRules16210000to16210320oftheMinimumStandards forAuditsofOregonMunicipalCorporations noncompliancewithwhichcouldhaveadirectand materialeffectondeterminationoffinancialstatementsamounts However providinganopinion oncompliancewiththoseprovisionswasnotanobjectiveofouraudit andaccordingly wedonot expresssuchanopinion Weperformedprocedurestotheextentweconsiderednecessarytoaddresstherequired commentsanddisclosureswhichincluded butwerenotlimitedtothefollowing Depositofpublicfundswithfinancialinstitutions ORSChapter295 Indebtednesslimitations restrictionsandrepayment Budgetslegallyrequired ORSChapter294 Insuranceandfidelitybondsinforceorrequiredbylaw Programsfundedfromoutsidesources Highwayrevenuesusedforpublichighways roads andstreets Authorizedinvestmentofsurplusfunds ORSChapter294 Publiccontractsandpurchasing ORSChapters279A 279B 279C Inconnectionwithourtestingnothingcametoourattentionthat causedustobelieveCityof Eugenewasnotinsubstantialcompliancewithcertainprovisionsoflaws regulations contracts andgrants includingtheprovisi onsofOregonRevisedStatutesasspecifiedinOregon AdministrativeRules16210 000through16210320oftheMinimumStandardsforAuditsof OregonMunicipalCorporationsexceptasfollows 1 Overexpendituresofappropriations aredescribedinNote3tothefinancial statements Stewardship Compliance andAccountability 151 OAR162100230InternalControl Inplanningandperformingouraudit weconsideredCityofEugenesinternalcontrolover financialreportingasabasisfordesigningourauditingproceduresforthepurposeofexpressing ouropiniononthefinancialstatements butnotforthepurposeofexpressinganopiniononthe effectivenessofCityofEugenesinternalcontroloverfinancialreporting Accordingly wedonot expressanopinionontheeffectivene ssoftheCityinternalcontroloverfinancialreporting ThisreportisintendedsolelyfortheinformationanduseoftheHonorableMayor membersofthe CityCouncil theCityManager managementfortheCityofEugeneandtheOregonS ecretaryof Stateandisnotintendedtobeandshouldnotbeusedbyanyoneotherthanthosespecified parties ISLERCPA By GaryIskra CPA amemberofthefirm Eugene Oregon December15 2011 152 GOVERNMENTAUDITINGSTANDARDS GovernmentAuditingStandardsReport 153 thispageintentionallyleftblank 154 REPORTONINTERNALCONTROLOVERFINANCIALREPORTING ANDONCOMPLIANCEANDOTHERMATTERSBASEDONANAUDIT OFFINANCIALSTATEMENTSPERFORMEDINACCORDANCEWITH GOVERNMENTAUDITINGSTANDARDS TotheHonorableMayorandMembersofth eCityCouncil CityofEugene Oregon Wehaveauditedthefinancialstatementsofthegovernmentalactivities thebusinesstype activities eachmajorfund andtheaggregateremainingfundinformationofCityofEugene Oregon theCity asofandfortheyearendedJune30 2011 whichcollectivelycomprisethe CitysbasicfinancialstatementsandhaveissuedourreportthereondatedDecember15 2011 Weconductedourauditinaccordancewithauditin gstandardsgenerallyacceptedintheUnited StatesofAmericaandthestandardsapplicabletofinancialauditscontainedinGovernment AuditingStandards issuedbytheComptrollerGeneraloftheUnitedStates InternalControlOverFinancialReporting Inplanningandperformingouraudit weconsideredtheCitysinternalcontroloverfinancial reportingasabasisfordesigningourauditingprocedures forthepurposeofexpressingour opinionsonthefinancialstatements butnotforthepurposeofexpressinganopiniononthe effectivenessoftheCitysinternalcontroloverfinancialreporting Accordingly wedonotexpress anopinionontheeffectivenessofCit ysinternalcontroloverfinancialreporting Adeficiencyininternalcontrolexistswhenthedesignoroperationofacontroldoesnotallow managementoremployees inthenormalcourseofperformingtheirassignedfunctions to prevent ordetectandcorrectmisstatementsonatimelybasisAmaterialweaknessisa deficiency orcombinationofdeficiencies ininternalcontrol suchthatthereisareasonable possibilitythatamaterialmisstatementof theentitysfinancialstatementswillnotbeprevented ordetectedandcorrectedonatimelybasis Ourconsiderationofinternalcontroloverfinancialreportingwasforthelimitedpurpose described inthefirstparagraphof thissectionandwasnotdesignedtoidentifyalldeficienciesininternal controloverfinancialreportingthatmightbedeficiencies significantdeficienciesormaterial weaknesses Wedidnotidentifyanydeficienciesininte rnalcontroloverfinancialreportingthat weconsidertobematerialweaknesses asdefinedabove ComplianceandOtherMatters AspartofobtainingreasonableassuranceaboutwhethertheCitysfinancialstatementsarefree ofmaterialmisstatement weperformedtestsofitscompliancewithcertainprovisionsof laws regulations contracts andgrantagreements noncompliancewithwhichcouldhaveadirectand materialeffectonthedeterminationo ffinancialstatementamounts However providingan opiniononcompliancewiththoseprovisionswasnotanobjectiveofourauditand accordingly wedonotexpresssuchanopinion Theresultsofourtestsdisclosednoinstancesof noncomplianceorothermattersthatarerequiredtobereportedunderGovernmentAuditing Standards 155 Thisreportisintendedsolelyfortheinformationanduseofmanagement CityCouncil others withintheentity andfederalawardingagencies andpassthroughentitiesandisnotintendedto beandshouldnotbeusedbyanyoneother thanthesespecifiedparties IslerCPA ByGaryIskra CPA amemberofthefirm Eugene Oregon December15 2011 156 OMBCircularA133 SingleAudit Report 157 thispageintentionallyleftblank 158 REPORTONCOMPLIANCEWITHREQUIREMENTSTHATCOULD HAVEADIRECTANDMATERIALEFFECTONEACHMAJOR PROGRAMANDONINTERNALCONTROLOVERCOMPLIANCEIN ACCORDANCEWITHOMBCIRCULARA133 TotheHonorableMayorandMembersoftheCityCou ncil CityofEugene Oregon Compliance WehaveauditedtheCityofEugenes theCity compliancewiththetypesofcompliance requirementsdescribedintheOMBCircularA133ComplianceSupplementthatcouldhavea directandmaterialeffectoneachofitsmajorfederalprogramsfortheyearendedJune30 2011 TheCitysmajorfederalprogramsfortheyearendedJune30 2011 TheCitysmajorfederal programsareidentifiedinthesummaryofauditor sresults sectionoftheaccompanyingschedule offindingsandquestionedcosts Compliancewiththerequirementsoflaws regulations contracts andgrantsapplicabletoeachofitsmajorfederalprogramsistheresponsibilityo fthe Citysmanagement OurresponsibilityistoexpressanopinionontheCityscompliancebased onouraudit Weconductedourauditofcomplianceinaccordancewithauditingstandardsgenerallyaccepted intheUnitedStatesofAme rica thestandardsapplicabletofinancialauditscontainedin GovernmentAuditingStandardsissuedbytheComptrollerGeneraloftheUnitedStates and OMBCircularA133 AuditsofStates LocalGovernments andNonProfitOrganizations Those standardsandOMBCircularA133requirethatweplanandperformtheaudittoobtain reasonableassuranceaboutwhethernoncompliance withthetypesofcompliancerequirements referredtoabovethatcouldhaveadirectandmaterialeffectonamajorfederalprogram occurred Anauditincludesexamining onatestbasis evidenceabouttheCityscompliance withthoserequirementsandperformingsuchotherproceduresasweconsiderednecessaryin thecircumstances Webelievethatourauditprovidesareasonablebasisforouropinion Our auditdoesnotprovidealegaldeterminationof theCityscompliancewiththoserequirements Inouropinion theCitycomplied inallmaterialrespects withthecompliancerequirements referredtoabovethatcouldhaveadirectandmaterialeffectoneachofitsmajorfederal programsfortheyearendedJune30 2011 InternalControlOverCompliance ThemanagementoftheCityisresponsibleforestablishingandmaintainingeffectiveinternal controlovercompliancewiththerequirementsoflaws regulations contractsandgrants applicabletofederalprograms Inplanningandperformingouraudit weconsideredtheCitys internalcontrolovercompliancewithrequirementsthatcouldhaveadirectandmaterialeffecton amajorfederalprograminordertodetermineourauditingproceduresforthepurposeof expressingouropiniononcomplianceandtotestandreportoninternalcontrolovercompliance inaccordancewithOMBCircularA133 butnotforthepurposeofexpressinganopiniononthe effectivenessofinternalcontrol overcompliance Accordingly wedonotexpressanopinionon theeffectivenessoftheCitysinternalcontrolovercompliance 159 Adeficiencyininternalcontrolovercomplianceexistswhenthedesignoroperationofacontrol overcompliancedoesnotallowmanagementoremployees inthenormalcourseofperforming theirassignedfunctions toprevent ordetectandcorrect noncompliance withatypeof compliancerequirementofafederalprogramonatimelybasis Amaterialweaknessininternal controlovercomplianceisadeficiency orcombinationofdeficiencies ininternal controlover compliance suchthatthereisareasonablepossibilitythatmaterialnoncompliancewithatypeof compliancerequirementofafederalprogramwillnotbeprevented ordetectedandcorrected on atimelybasis Ourconsiderationofinternalcontrolovercompliancewasforthe limitedpurpose describedinthe firstparagraphofthissectionandwasnotdesignedtoidentifyalldeficienciesininternalcontrol overcompliancethatmightbedeficiencies significantdeficiencies ormaterialweaknesses We didnotidentifyanydeficienciesininternalcontrolovercompliancethatweconsidertobematerial weaknesses asdefinedabove Thisreportisintendedsolelyfortheinformationanduseofmanagement CityCouncil others withintheentity federalawardingagencies andpass throughentitiesandisnotintendedtobe andshouldnotbeusedb yanyoneotherthanthesespecifiedparties IslerCPA ByGaryIskra CPA amemberofthefirm Eugene Oregon December15 2011 160 CITYOFEUGENE OREGON ScheduleofFindingsandQuestionedCosts June30 2011 SectionI SummaryofAuditors Results 1 Theauditors reportexpressesanunqualifiedopiniononthefinancialstatementsofthe Cityof Eugene 2 Nosignificantdeficienciesormaterialweaknessesrelatingtotheauditofthefinancialstatements arereportedintheReportonInternalControlOverFinancialReportingandonComplianceand OtherMattersBasedonanAuditofFinancialStatementsPerformedinAccordancewith GovernmentAuditingStandards 3 NoinstancesofnoncompliancematerialtothefinancialstatementsoftheCityofEugenewere disclosedduringtheaudit 4 Nosignificantdeficienciesormaterialweaknessesrelatingtotheauditofthemajorfederalaward programsarereportedintheReportonCompliancewithRequirementsApplicabletoEachMajor ProgramandonInternalControlOverComplianceinAccordancewithOMBCircularA133 5 Theauditors reportoncomplianceforthemajorfederalawardprogramsfortheCityofEugene expressesanunqualifiedopiniononthemajorfeder alprograms 6 NoauditfindingsrelativetothemajorfederalawardprogramsfortheCityofEugenearereported 7 Theprogramstestedasamajorprogramswere ARRA HabitatConservation CFDA 11463 PublicSafetyInteroperableCo mmunicationsGrantProgram CFDA 11555 CDBG EntitlementGrantsCluster CommunityDevelopmentBlockGrantsEntitlementGrants CFDA 14218 ARRA CommunityDevelopmentBlockGrantsEntitlementGrants CFDA 14218 ARRA CommunityDevelopmentBlockGrantRecovery CDBGRFunds CFDA 14253 ARRA HomelessnessPreventionandRapidRe Housing CFDA 14257 JAGProgramCluster EdwardByrneMemorialJusticeAssistanceGrantProgram CFDA 16738 ARRA EdwardByrneMemorialJusticeAssistanceGrant JAG Program CFDA 16804 ARRA EnergyEfficiencyandConservationBlockGrantProgram EECBG CFDA 81128 HighwayPlanningandConstruction CFDA 20205 8 ThethresholdfordistinguishingbetweenTypeAandBprogramswas 407197 9 TheCityofEugenequalifiedasalowriskauditee SectionII FinancialStatementFindings None SectionIII FederalAwardFindingsandQu estionedCosts None SectionIV SummaryScheduleofPriorAuditFindings None 161 CityofEugene Oregon J1 ScheduleofExpendituresofFederalAwards Forthefiscalyearended June30 2011 amountsindollars Federal CFDA FederalGrantorProgramTitlenumberGrantnumberExpenditures US Department ofAgriculture GrantspassedthroughStateofOregon ARRA RecoveryActof2009 WildlandFireManagement10688GRNT0570 ARRA RecoveryActof2009 WildlandFireManagement10688GRNT05692931336014 TotalUS DepartmentofAgriculture60665 US DepartmentofCommerce Directprogram ARRA HabitatConservation11463NA09NMF4630300587247 GrantspassedthroughStateofOregon PublicSafetyInteroperable CommunicationsGrantProgram1155507407357988 TotalUS DepartmentofCommerce945235 US Department of Housing andUrbanDevelopment Directprogram HOMEInvestmentPartnershipsProgram 14239M08DC4102002005967 CommunityDevelopment BlockGrantsBEDI14246B05BD410029734769 ARRA HomelessnessPreventionandRapidReHousing14257S 09MY410002376482 GrantspassedthroughStateofOregon Sustainable CommunitiesRegionalPlanning GrantProgram14703na1973 CDBG EntitlementGrantsCluster Directprogram CommunityDevelopmentBlockGrantsEntitlementGrants14 218B 08MC4100011127556 ARRA CommunityDevelopmentBlockGrantRecovery CDBGR Funds14253B09MY41 0001337980 GrantspassedthroughStateofOregon ARRA CommunityDevelopmentBlockGrantsEntitlementGrants1421801089 NSP174072 TotalCDBG EntitlementGrantsCluster1639608 TotalUS DepartmentofHousingandUrbanDevelopment4758799 US Department oftheInterior Directprogram BureauofLandManagementAssistanceAgreement15DAKL08AC13286 000543490 BureauofLandManagementAssistanceAgre ement15DAKL10AC16159 000018515 Fish WildlifeandPlantConservationResourceManagement152312008 0056 00362414 Fish WildlifeandPlantConservationResourceManagement15231L10AC2036654831 TotalUS DepartmentoftheInterior179250 US Department ofJustice Directprogram BulletproofVestPartnershipProgram16607na20171 GrantspassedthroughLaneCounty Oregon CongressionallyRecommendedAwards1675320110322212 09 JAGProgramCluster GrantspassedthroughLaneCounty Oregon EdwardByrneMemorialJusticeAssistanceGrantProgram167382007DJBX107650 313 ARRA RecoveryAct EdwardByrneMemorialJusticeAssistanceGrant168042009SB B9 1402155526 TotalJAGProgramCluster205839 TotalUS DepartmentofJustice227219 162 continued CityofEugene OregonJ1 continued ScheduleofExpendituresofFederalAwards Forthefiscalyearended June30 2011 amountsindollars Federal CFDA FederalGrantorProgramTitlenumberGrantnumberExpenditures US Department of Transportation Directprogram AirportImprovementProgram201063410018044529364 AirportImprovementProgram201063410018045602936 AirportImprovementProgram201063410018046873134 PaymentsforSmallCommunityAirServiceDevelopment20 930OST2010 01246829 Grantspassedthrough OregonAssociation Chiefs ofPolice StateandCommunityHighwaySafety2060020090321423936 MinimumPenaltiesforRepeat OffendersforDrivingWhileIntoxicated206082008 200914490 HighwayPlanning andConstructionCluster Directprogram HighwayPlanningandConstruction20205na40375 GrantspassedthroughStateofOregon HighwayPlanningandConstruction2020525302920250 HighwayPlanningandConstruction20205233591075378 HighwayPlanningandConstruction20205234224798 HighwayPlanningandConstruction2020525302310000 HighwayPlanningandConstruction202052465150027 HighwayPlanningandConstruction202052677822300 HighwayPlanningandConstruction202052685873972 HighwayPlanningandConstruction2020526725312100 HighwayPlanningandConstruction2020526415680811 GrantspassedthroughLaneCouncil ofGovernments HighwayPlanningandConstruction202052010 0021732771 HighwayPlanningandConstruction202052011 0020740000 TotalHighwayPlanningandContructionCluster3562782 TotalUS DepartmentofTransportation5613471 US EnvironmentalProtectionAgency Directprogram ClimateShowcaseCommunitiesGrantProgram66041AF83452 601020332 RegionalWetlandProgramDevelopment Grants66461EPAR10WPDG2010661 TotalUS EnvironmentalProtectionAgency20993 US DepartmentofEnergy Directprogram ARRA EnergyEfficiencyandConservationBlockGrantP rogram EECBG81128DESC00018631252915 TotalUS DepartmentofEnergy1252915 US DepartmentofEducation GrantspassedthroughEugeneSchoolDistrict4J FundfortheImprovementofEducation84215Q215F090921102595 TwentyFirstCenturyCommunityLearningCenters84287673335000 Twenty FirstCenturyCommunityLearningCenters842871692374980 TotalUS DepartmentofEducation212575 continued 163 CityofEugene OregonJ1 continued ScheduleofExpendituresofFederalAwards Forthefiscalyearended June30 2011 amountsindollars Federal CFDA FederalGrantorProgramTitlenumberGrantnumberExpenditures US Department of HomelandSecurity GrantspassedthroughStateofOregon EmergencyManagementPerformanceGrants97042na144147 CitizenCorps97053091082229 CitizenCorps97053101035072 StateHomelandSecurityProgram SHSP 970730721632075 StateHomelandSecurityProgram SHSP 9707308220109797 StateHomelandSecurityProgram SHSP 97073092283879 StateHomelandSecurityProgram SHSP 97073091084919 TotalUS DepartmentofHomelandS ecurity302118 Total FederalFinancialAssistance 13573240 164 CITYOFEUGENE OREGON NotestoScheduleofExpendituresofFederalAwards June30 2011 1 PurposeoftheSchedule Theaccompanyingscheduleofexpendituresoffederalawards the Schedule isasupplementary scheduletotheCityofEugenesbasicfinancialstatementsandispresentedforpurposesofadditional analysis BecausetheSchedulepresentsonlyaselectedportionoftheactivitiesoftheCityofEugene Oregon itisnotintended toanddoesnotpresenteitherthefinancialposition changesinfundbalances ortheoperatingfunds revenuesorexpendituresoftheCityofEugene Oregon 2 SignificantAccountingPolicies Basisof Presentation TheinformationintheScheduleispresentedinaccordancewithOMBCircularA133 AuditsofStates LocalGovernments andNonProfitOrganizations FederalFinancialAssistance PursuanttotheSingleAudi tActof1984andOMBCircularA133 federalfinancialassistanceisdefined asassistanceprovidedbyafederalagency eitherdirectlyorindirectly intheformofgrants contracts cooperativeagreements loans loanguarantees property interestsubsidies insuranceordirect appropriations Accordingly nonmonetaryfederalassistance includingfederalsurplusproperty is includedinfederalfinancialassistanceand therefore isreportedontheSchedule ifapplicable Federal financialassistancedoesnotincludedirectfederalcashassistancetoindividuals Solicitedcontracts betweenthestateandfederalgovernmentforwhichthefeder algovernmentprocurestangiblegoodsor servicesarenotconsideredtobefederalfinancial assistance MajorPrograms TheSingle AuditActof1984andOMBCircularA133establishcriteriatobeusedindefiningmajor federalfinancialassistanceprograms MajorprogramsfortheCityofEugene Oregonarethose programsselectedfortestingbytheauditorusingariskassessmentmodel aswellascertainminimum expenditurerequirements asoutlinedinOMBCircularA133 Programswithsimilarrequirementsmay begroupedintoaclusterfortestingpurposes ReportingEntity ThereportingentityisfullydescribedinNote1A totheCityofEugene OregonsBasicFinanci al Statements Additionally theScheduleincludesallfederalprogramsadministeredbytheCityofEugene OregonfortheyearendedJune30 2011 RevenueandExpenditureRecognition Thereceiptandexpenditureoffederalawards areaccountedforunderthemodifiedaccrualbasisof accounting Revenuesarerecordedasreceivedincashorontheaccrualbasiswheremeasurableand available Expenditures arerecordedwhentheliabilityisincurred 165 thispageintentionallyleftblank 166 December27 2011 TotheCityCouncil CityofEugene Oregon Wehaveauditedthefinancialstatementsofthegovernmentalactivities thebusinesstypeactivities each majorfund andtheaggregateremainingfundinformationof theCityofEugenefortheyearendedJune 30 2011 andhaveissuedourreportthereondated December15 2011 Professionalstandardsrequire thatweprovideyouwiththefollowinginformationrelatedtoouraudit 3YV 6IWTSRWMFMPMX YRHIV 9 7 IRIVEPP GGITXIH YHMXMRK 7XERHEVHW Asstated inourengagementletterdatedAugust24 2011 ourresponsibility asdescribedbyprofessional standards istoexpressopinionsaboutwhetherthe financialstatementspreparedbymanagementwith youroversightarefairlypresented inallmaterialrespects inconformitywiththemodifiedcashbasisof accounting Ourauditofthefinancialstatementsdoesnotrelieveyouor managementofyour responsibilities 4PERRIH 7GSTI ERH 8MQMRK SJ XLI YHMX Weperformedtheauditaccordingtotheplannedscopeandtimingpreviouslycommunicatedtoyouinour engagementletter 5YEPMXEXMZI WTIGXW SJ GGSYRXMRK 4VEGXMGIW Managementisresponsiblefortheselectionanduseofappropriateaccountingpolicies Thesignificant accountingpoliciesusedbytheCityofEugenearedescribedinNote 1 tothefinancialstat ements We notednotransactionsenteredintobytheCityduring theyearforwhichthereisalackofauthoritative guidanceorconsensus Accountingestimatesareanintegralpartofthefinancialstatementspreparedbymanagement andare basedonmanagementsknowledgeandexperienceaboutpastandcurrenteventsandassumptionsabout futureevents Themostsignificantestimateaffectingthefinancialstatementswasthedeterminationof depreciationoncapitalassets Theaccountingpoliciesrelatingtocapitalassetsanddepreciationare describedinfootnote1 J tothecomprehensiveannualfinancialreport MJJMGYPXMIW RGSYRXIVIH MR 4IVJSVQMRK XLI YHMX Weencounterednosignificantdifficultiesin dealingwithmanagementinperformingandcompletingour audit Therewerenoknownorlikelymisstatementsidentifiedduringthe audit MWEKVIIQIRXW MXL 1EREKIQIRX Forpurposesofthisletter professionalstandardsdefineadisagreementwithmanagementasafinancial accounting reporting orauditingmatter whetherornotresolvedtooursatisfactio n thatcouldbesignificant tothefinancialstatementsortheauditorsreport Wearepleasedtoreportthatnosuchdisagreements aroseduringthecourseofouraudit 1EREKIQIRX 6ITVIWIRXEXMSRW Wehaverequestedcertainrepres entationsfrommanagementthat areincludedinthemanagement representation letterdatedDecember15 2011 1EREKIQIRX SRWYPXEXMSRW MXL 3XLIV RHITIRHIRX GGSYRXERXW Insomecases managementmaydecidetoconsultwithot heraccountantsabout auditingandaccounting matters similartoobtaininga secondopinion oncertainsituations Ifaconsultationinvolvesapplicationof anaccountingprincipletotheCitysfinancialstatementsoradeter minationofthetypeofauditorsopinion thatmaybeexpressedonthosestatements ourprofessionalstandardsrequiretheconsultingaccountantto checkwith ustodeterminethattheconsultanthasalltherelevantfacts Toourknowledge therewereno suchconsultationswithotheraccountants 3XLIV YHMX MRHMRKW SV WWYIW Wegenerallydiscussavarietyofmatters includingtheapplicationofaccountingprinciplesandauditing standards withmanagementeachyearprior toretentionastheCitysauditors However thesediscussions occurredinthenormalcourseofourprofessionalrelationshipandourresponseswerenotaconditiontoour retention ThisinformationisintendedsolelyfortheuseoftheCityCouncilandmanagementoftheCityofEugene andisnotintendedtobeandshouldnotbeusedbyanyoneotherthanthesespecifiedparties Verytrulyyours 706 4 EV WOVE E QIQFIV SJ XLI JMVQ