City of Hillsboro CAFR
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City of Hillsboro, Oregon Comprehensive Annual Financial Report For the Year Ended June 30, 2020 CITY OF HILLSBORO, OREGON Comprehensive Annual Financial Report Year Ended June 30, 2020 Prepared by: City Finance Department Printed on recycled paper. This page is intentionally left blank. CITY OF HILLSBORO, OREGON TABLE OF CONTENTS Page INTRODUCTORY SECTION: Letter of Transmittal i Officials of the City xii Organization Chart xiii Certificate of Achievement for Excellence in Financial Reporting xiv FINANCIAL SECTION: INDEPENDENT AUDITOR'S REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 4 BASIC FINANCIAL STATEMENTS: Statement of Net Position 15 Statement of Activities 17 Balance Sheet – Governmental Funds 18 Reconciliation of Governmental Funds Balance Sheet to Statement of Net Position 19 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 20 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds to Statement of Activities 21 Statement of Net Position – Proprietary Funds 23 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds 25 Statement of Cash Flows ‐ Proprietary Funds 26 Statement of Net Position ‐ Fiduciary Funds 28 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Fund 29 Notes to Basic Financial Statements 30 REQUIRED SUPPLEMENTARY INFORMATION: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: General Fund 71 Transportation Fund 74 Parks System Development Charges 75 Building Fund 76 Schedule of Proportionate Share of the Net Other Postemployment Benefit (OPEB) Liability (Asset) – OPERS Retirement Health Insurance Account (RHIA) 77 Schedule of the City’s Contributions – OPERS RHIA 78 Schedule of Total OPEB Liability – Implicit rate subsidy plan – single‐employer plan 79 Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset) – Oregon Public Employees Retirement System 80 Schedule of the City’s Contributions – Oregon Public Employees Retirement System 81 Notes to Required Supplementary Information 82 CITY OF HILLSBORO, OREGON TABLE OF CONTENTS (Continued) Page FINANCIAL SECTION (Continued): OTHER SUPPLEMENTARY INFORMATION: Non‐Major Governmental Funds: Combining Balance Sheet 83 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 84 Non‐Major Special Revenue Funds: Combining Balance Sheet 85 Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 86 Schedule of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual: Police Forfeiture Fund 87 Cadet Fund 88 Parks Mitigation Fund 89 Parks Supplemental SDC Fund 90 Community Development Block Grant Fund 91 Non‐Major Debt Service Fund: Combining Balance Sheet 92 Combining Statement of Revenue, Expenditures, and Changes In Fund Balances 93 Schedule of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual: Hillsboro Economic Development Council Downtown Hillsboro Tax Increment Fund 94 Hillsboro Economic Development Council North Hillsboro Industrial Tax Increment Fund 95 South Hillsboro Local Improvement District Fund 96 Non‐Major Capital Projects Funds: Combining Balance Sheet 97 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 98 Schedules of Revenues, Expenditures and Changes in Fund Balance ‐ Budget and Actual: Hillsboro Economic Development Council Downtown Hillsboro Fund 99 Hillsboro Economic Development Council North Hillsboro Industrial Fund 100 Parks Capital Fund 101 South Hillsboro Community Service Fee Capital Fund 102 Gain Share Capital Fund 103 CITY OF HILLSBORO, OREGON TABLE OF CONTENTS (Continued) Page FINANCIAL SECTION (Continued): OTHER SUPPLEMENTARY INFORMATION (Continued): Enterprise Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance ‐ Budget and Actual – Budgetary Basis: Utilities Commission Fund 104 Sewer Fund 106 Surface Water Management Fund 108 Non‐Major Proprietary Funds: Combining Statement of Net Position 110 Combining Statement of Revenues, Expenses, and Changes in Net Position 112 Combining Statement of Cash Flows 113 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Budgetary Basis: Property Management Fund 115 Intermodal Transit Facility 116 Broadband Fund 117 Internal Service Funds: Combining Statement of Net Position 118 Combining Statement of Revenues, Expenses and Changes in Net Position 120 Combining Statement of Cash Flows 121 Combining Schedule of Reconciliation of Revenues, Expenditures and Changes in Fund Balance to Changes in Net Position 123 Schedules of Revenues, Expenditures and Changes in Fund Balance ‐ Budget and Actual – Budgetary Basis: Fleet Management Fund 124 Copier Program Fund 125 Risk Management Fund 126 Loss Reserve Fund 127 Support Services Fund 128 Sustainability Revolving Fund 130 Facilities Management Fund Combining Balance Sheet 131 Facilities Management Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 132 Schedules of Revenues, Expenditures and Changes in Fund Balance ‐ Budget and Actual – Budgetary Basis: Facilities Management Operating Fund 133 Facilities Management Strategic Investment Program Fund 134 CITY OF HILLSBORO, OREGON TABLE OF CONTENTS (Continued) Page FINANCIAL SECTION (Continued): OTHER SUPPLEMENTARY INFORMATION (Continued): Trust and Agency Funds: Combining Balance Sheet – Trust and Agency Funds 135 Statement of Changes in Assets and Liabilities – Agency Funds 136 Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Budgetary Basis: Cemetery Endowment Trust – Private Purpose Trust Fund 137 Library Reserve Fund 138 Broadband Users Group Fund 139 Portland Users Group Fund 140 Other Schedules: Schedule of Property Tax Transactions 141 Combining Balance Sheet – General Fund 142 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – General Fund 143 STATISTICAL SECTION: Net Position by Component ‐ Last Ten Fiscal Years 144 Changes in Net Position ‐ Governmental Activities ‐ Last Ten Fiscal Years 145 Changes in Net Position ‐ Business‐Type Activities ‐ Last Ten Fiscal Years 146 Fund Balances, Governmental Funds ‐ Last Ten Fiscal Years 147 Changes in Fund Balances, Governmental Funds ‐ Last Ten Fiscal Years 148 Government‐wide Expenses by Function ‐ Last Ten Fiscal Years 149 Government‐wide Revenue by Program – Last Ten Fiscal Years 150 General Government Expenditures by Function ‐ Last Ten Fiscal Years 151 General Government Revenues by Source – Last Ten Fiscal Years 151 Assessed Value and Actual Value of Taxable Property ‐ Last Ten Fiscal Years 152 Property Tax Rates ‐ Direct and Overlapping Governments – Last Ten Fiscal Years 153 Consolidated Tax Rates – Last Ten Fiscal Years 154 Principal Taxpayers ‐ Current and Nine Years Ago 155 Property Tax Levies and Collections ‐ Last Ten Fiscal Years 156 Consolidated Tax Levies ‐ Last Ten Fiscal Years 157 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 158 Computation of Direct and Overlapping Debt ‐ June 30, 2020 159 Legal Debt Margin Information and Computation ‐ Last Ten Fiscal Years 160 Pledged Revenue Coverage ‐ Last Ten Fiscal Years 161 Demographic and Economic Statistics ‐ Last Ten Fiscal Years 162 Property Value and New Construction ‐ Last Ten Fiscal Years 163 Ten Largest Employers – Current and Nine Years Ago 164 CITY OF HILLSBORO, OREGON TABLE OF CONTENTS (Continued) Page STATISTICAL SECTION (Continued): Full Time Equivalent Government Budgeted Employees by Function/Program ‐ Last Ten Fiscal Years 165 Operating Indicators by Function/Program – Last Ten Fiscal Years 166 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 167 COMPLIANCE SECTION Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 168 Report on Compliance for Each Major Federal Program; Report on Internal Controls Over Compliance; Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 170 Schedule of Expenditures of Federal Awards 172 Schedule of Findings and Questioned Costs 174 INDEPENDENT AUDITOR’S REPORT REQUIRED BY OREGON STATE REGULATIONS 176 This page is intentionally left blank. INTRODUCTORY SECTION This page is intentionally left blank. February 24, 2021 Honorable Mayor Steve Callaway, Members of the City Council, and Citizens of the City of Hillsboro, Oregon The Comprehensive Annual Financial Report of the City of Hillsboro, Oregon, (the City) for the fiscal year ended June 30, 2020, is hereby submitted. The report presents the financial position of the City as of, and for the year ended June 30, 2020. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures rests with management. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that presents fairly the financial position, results of operations and cash flows of the various funds and component unit of the City. All disclosures necessary to enable the reader to gain an understanding of the City’s activities have been included. For financial reporting purposes the City is the primary government. Its governing Council is elected by the citizens in a general election. The City operates under the council‐manager form of government. Policy making and legislative authority are vested