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City of Hillsboro, Oregon Comprehensive Annual Financial Report

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City of Hillsboro, Oregon Comprehensive Annual Financial Report City of Hillsboro, Oregon Comprehensive Annual Financial Report Financial Statements for the Year Ended June 30, 2012 Cherry Lane Fire Station CITY OF HILLSBORO, OREGON Comprehensive Annual Financial Report Year Ended June 30, 2012 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 3 BASIC FINANCIAL STATEMENTS: Statement of Net Assets 13 Statement of Activities 14 Balance Sheet – Governmental Funds 15 Reconciliation of Governmental Funds Balance Sheet to Statement of Net Assets 16 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 17 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds to Statement of Activities 18 Statement of Net Assets – Proprietary Funds 19 Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds 20 Statement of Cash Flows - Proprietary Funds 21 Statement of Net Assets - Fiduciary Funds 23 Statement of Changes in Fiduciary Net Assets – Private Purpose Trust Fund 24 Notes to Basic Financial Statements 25 REQUIRED SUPPLEMENTARY INFORMATION: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: General Fund 49 Transportation Fund 52 Oregon Public Employees Retirement System – Schedule of Funding Progress 53 Other Postemployment Benefits Plan – Schedule of Funding Progress 53 Notes to Required Supplementary Information 54 OTHER SUPPLEMENTARY INFORMATION: Non-Major Governmental Funds: Combining Balance Sheet 55 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 56 CITY OF HILLSBORO, OREGON TABLE OF CONTENTS (Continued) Page FINANCIAL SECTION (Continued): OTHER SUPPLEMENTARY INFORMATION (Continued): Non-Major Special Revenue Fund: Schedule of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual: Building Fund 57 Non-Major Debt Service Fund: Schedule of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual: Hillsboro Economic Development Council Tax Increment Fund 58 Non-Major Capital Projects Funds: Combining Balance Sheet 59 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 60 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Hillsboro Economic Development Council Fund 61 Parks Capital Fund 62 Enterprise Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Budgetary Basis: Utilities Commission Fund 63 Sewer Fund 64 Surface Water Management Fund 65 Non-Major Proprietary Funds: Combining Statement of Net Assets 66 Combining Statement of Revenues, Expenses, and Changes in Net Assets 67 Combining Statement of Cash Flows 68 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Budgetary Basis: Property Management Fund 69 Intermodal Transit Facility 70 Internal Service Funds: Combining Statement of Net Assets 71 Combining Statement of Revenues, Expenses and Changes in Net Assets (Deficit) 72 Combining Statement of Cash Flows 73 Combining Schedule of Reconciliation of Revenues, Expenditures and Changes in Fund Balance (Deficit) to Changes in Net Assets (Deficit) 74 CITY OF HILLSBORO, OREGON TABLE OF CONTENTS (Continued) Page FINANCIAL SECTION (Continued): OTHER SUPPLEMENTARY INFORMATION (Continued): Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Budgetary Basis: Fleet Management Fund 75 Copier Program Fund 76 Risk Management Fund 77 Loss Reserve Fund 78 Facilities Management Fund 79 Support Services Fund 80 Sustainability Revolving Fund 82 Trust and Agency Funds: Combining Balance Sheet – Trust and Agency Funds 83 Schedule of Changes in Assets and Liabilities – Agency Funds 84 Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: Cemetery Endowment Trust – Private Purpose Trust Fund 86 Public Safety Fund 87 Jackson Bottom Preserve Fund 88 Library Reserve Fund 89 Broadband Users Group Fund 90 Portland Users Group Fund 91 Other Schedules: Schedule of Property Tax Transactions 92 Combining Balance Sheet – General Fund 93 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – General Fund 94 STATISTICAL SECTION: Net Assets by Component - Last Ten Fiscal Years 95 Changes in Net Assets - Last Ten Fiscal Years 96 Fund Balances, Governmental Funds - Last Ten Fiscal Years 98 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years 99 Government-wide Expenses by Function - Last Ten Fiscal Years 100 Government-wide Revenue by Program – Last Ten Fiscal Years 101 General Government Expenditures by Function - Last Ten Fiscal Years 102 General Government Revenues by Source – Last Ten Fiscal Years 102 Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years 103 Property Tax Rates - Direct and Overlapping Governments – Last Ten Fiscal Years 104 Consolidated Tax Rates – Last Ten Fiscal Years 105 Principal Taxpayers - Current and Nine Years Ago 106 Property Tax Levies and Collections - Last Ten Fiscal Years 107 Consolidated Tax Levies - Last Ten Fiscal Years 108 CITY OF HILLSBORO, OREGON TABLE OF CONTENTS (Continued) Page STATISTICAL SECTION (Continued): Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 109 Computation of Direct and Overlapping General Obligation Debt - June 30, 2012 110 Legal Debt Margin Information and Computation - Last Ten Fiscal Years 111 Pledged Revenue Coverage - Last Ten Fiscal Years 112 Demographic and Economic Statistics - Last Ten Fiscal Years 113 Property Value and New Construction - Last Ten Fiscal Years 114 Ten Largest Commercial Employers – Year Ended June 30, 2012 115 Full Time Equivalent Government Employees by Function/Program - Last Ten Fiscal Years 116 Operating Indicators by Function/Program – Last Seven Fiscal Years 117 Capital Asset Statistics by Function/Program – Last Seven Fiscal Years 118 COMPLIANCE SECTION Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 119 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 121 Schedule of Expenditures of Federal Awards 123 Schedule of Findings and Questioned Costs 124 Summary of Prior Audit Findings 129 INDEPENDENT AUDITOR’S REPORT REQUIRED BY OREGON STATE REGULATIONS 130 INTRODUCTORY SECTION This page is intentionally left blank. November 30, 2012 Honorable Mayor Jerry Willey, 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, 2012 is hereby submitted. The report presents the financial position yof the Cit as of, and for the year ended June 30, 2012. 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 in the governing Council, which consists of a mayor and six‐ member Council. This report includes all organizations and activities for which the elected officials exercise financial control. The financial statements of the City’s one component unit, the Hillsboro Economic Development Council Urban Renewal Agency, are included in this report. The City may interact or contract with various other governmental entities but is not financially accountable for those entities and therefore such entities’ financial statements are not included in this report. City management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure adequate accounting data is compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. In addition, the City maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget adopted by the City Council. Activities of all funds are included in the annual adopted budget. This Comprehensive Annual Financial Report is presented in four sections: Introductory, Financial, Statistical, and Compliance. The Introductory section, which is unaudited, includes this letter of transmittal, an organizational chart, GFOA Certificate of Achievement for Excellence in Financial
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