Financial Summary Introduction A budget is a plan that develops and allocates the City’s financial resources to meet community needs, both immediate and for the longer term. The development and allocation of these resources is accomplished on the basis of policies, goals and objectives that address the requirements and needs of the City of Longview. While the other sections of this document present the budget in detail, this section provides an economic overview of the City and the challenges it faces. As such, this section focuses on the City’s strategies to maintain its financial strength and the basis for the expectations for future revenues. Additional information about the City’s financial outlook is detailed in the Budget Message.

The first half of the Financial Summary examines Longview’s economy and includes the following topics:  Longview’s Economic Outlook  Mint Farm Industrial Park  Other Economic Contributors  Meeting Needs and Improving the Quality of Life in Longview

The second half of the Financial Summary is the Budget Summary portion. It begins with detailed information about the City’s budgetary accounting methods and systems as well as fund definitions. The remainder of this section includes details about and comparisons of various portions of the budget. It documents Revenues and Expenditures for 2021 and 2022, provides historical information about City departments over the past five years, and breaks down the budget by funds. This section also contains information about the City’s debt management. This portion of the Financial Summary includes:

 General Governmental Functions  Financial and Budgetary Controls  Compliance with State Budgeting, Accounting and Reporting System (BARS)  Fund Accounting • Governmental Fund Types • Proprietary Fund Types • Fiduciary Fund Types  2021 and 2022 Revenues  City Revenue Sources  2021 and 2022 Expenditures  Budget Fund Comparisons  Five-Year Comparisons by Department  Debt Limitations and Management

Detailed information about revenues and expenditures for each of the City’s individual funds is captured in the Fund Summary on page 61, followed by the various accounting funds and the Capital Improvement Program.

23 2021/2022 Budget Financial Summary Longview’s Economic Outlook The Economy The City of Longview was initially developed as a planned community to support timber workers in the 1920s. The chief industrial sectors, wood products and aluminum production, drove the local economy from World War II until its peak in the 1970’s when a third of the County’s workforce was in manufacturing. Our per capita income surpassed the national average and was on par with the state. Since that time, leading companies have scaled back or disappeared altogether. The local economy has lost ground against both the state and nation.

While the Northwest economy has been strong in recent years, with record growth in the Seattle and Portland urban areas, growth has been slower to arrive in Longview. The good news is Longview has been attracting investor attention, led by the potential of a 2 million square foot project currently doing due diligence at the Mint Farm Industrial Park. Projects large and small continue to be presented to City staff exploring some phase of the site selection process around the City.

Despite a worldwide pandemic, investors carry on looking for and creating potentially fruitful business opportunities in locations such as Longview. With its close proximity to the I-5 corridor between Seattle and Portland, it provides business and industry an extensive network of transportation infrastructure. Longview is at the center of a comprehensive network of import/export shipping, warehouse/distribution facilities, and overland connections. Efforts to support and improve these assets will pave the way to a brighter future. It helps attract business investment in our community which, in turn, creates jobs and a better quality of life for our citizens. Regional Economic Development The City of Longview prides itself on being a proactive, business-friendly partner and is actively supporting economic development, recruitment, and assisting existing businesses in Longview. The City partners with the Cowlitz Economic Development Council, local property owners, and developers of residential, commercial, and industrial property throughout Longview to attract economic opportunity for the city. Together with Cowlitz County, Longview’s industrial site development has even attracted the attention of our governor, various state agencies, and economic development professionals throughout the region.

Participation in county and statewide economic development organizations and an ongoing partnership with Weyerhaeuser Real Estate Development Company at the City’s Mint Farm Industrial Park has resulted in Longview’s continued position as a prime location for industrial/ manufacturing, and transportation/trade companies. Marketing efforts for the Mint Farm Industrial Park have been rewarded with the development of several industrial plant locations and site purchases. Currently, a major international developer is in the pre-permitting phase and is working closely with the CEDC and the Army Corps of Engineers to develop 2 million square feet of distribution/light industrial space at the Mint Farm.

24 Other noteworthy industrial projects in Longview and Cowlitz County include:

 The Port of Longview developed its West and East Park industrial sites consisting of nearly 300 acres of rail served property. It also has an additional 280 acres west of the Millennium (formerly Longview Aluminum) site for industrial development.  The Kalama River Industrial Park in the Port of Kalama is comprised of 75 fully serviced industrial acres in addition to its already developed 148 acres. A $2 billion methanol manufacturing facility is going through the permitting process.  A partnership with the federal government, the states of Oregon and Washington, and the ports along the Columbia River resulted in completion of a river channel deepening project that has expanded the capacity of shipping to accommodate large panamax ships that have made the region a significant competitor in Pacific Rim trade, for both the import and export markets.  The Port of Woodland Industrial Park and surrounding sites offer nearly 180 acres of industrial land in close proximity to the Portland/Vancouver metro area. In addition, they are in the pre-permitting phase to develop a berth on the Columbia River.  Despite permitting setbacks, Millennium Bulk Logistic Company continues to push a plan for a coal export facility requiring an investment in excess of $660 million expected to produce 300 direct and indirect family- wage jobs.  The Port of Kalama has a $6.3 million project to build a public market facility to accompany a cruise ship dock currently in the works.  NW Innovation Works, also facing permitting issues, plans for a $2.2 billion methanol project at the Port of Kalama. This project calls for 2,000 construction jobs and will employ 240 full-time workers upon completion.  International Raw Materials (IRM) has elected to lease the Port of Longview’s Bridgeview Terminal. IRM proposes maximizing throughput of existing terminal infrastructure – intending to make Longview their flagship location for dry-bulk cargo. IRM has immediate intentions to improve existing components of the bulk load-out facility, while working to expand the on-site rail footprint

All of these sites have attracted attention in recent years, as is demonstrated by ongoing economic development recruitment efforts and the location of business and industry. Employment Regionally, the employment outlook appears uncertain due to the Covid-19 crisis. As of October 2020, the unemployment rate was 6.9%. However, this shows much improvement over the ballooning rate we saw in April 2020 when it jumped to 16.4% when the Governor’s Stay Home, Stay Safe restrictions were put in place. It is difficult to predict what the unemployment picture will look like as the pandemic continues. There is optimism with the rolling out of several vaccines in the coming months that could help stem the tide of infections and death. With that outlook, we are able to look forward to people getting back to work and our economy open and recovering. Other Economic Successes Downtown and central business core development has shown significant activity in recent years. The CEDC now oversees the Longview Downtowners group and they have taken several leaps forward with the largest car show on the west coast, small business Saturday and new restaurants and retail stores that were seeing great success before Covid-19 hit.

25 2021/2022 Budget Financial Summary Investments in pedestrian and bicycle safety and mobility projects have provided improved access along the Washington Way and 15th Avenue corridors that are major transportation corridors into the business district. These improvements provide better connectivity from Lower Columbia Community College and other nearby commercial/office districts to the Downtown Commerce district. Traffic signal upgrades were made in 2020 to further enhance pedestrian, bicycle, and motorist safety to access the Downtown Commerce district and nearby businesses.

Longview also stands to benefit from several commercial construction projects either recently completed or on the horizon. Larger projects of note include:  PeaceHealth St. John’s Hospital (1615 Delaware) – Multiple facility upgrades currently completed or in progress, including a new outpatient Physical Therapy facility - $10.3 million  Apartment Complex (4700 Block of Ocean Beach Highway) – Currently under review - $4.4 million  3rd Avenue Industrial Complex (1217 3rd Avenue) – Under Construction - $3.6 million  Monticello Hotel – More than $3 million spent on the purchase and remodel  New RiverCities Transit Center - $2.6 million  St. Helen’s Market Apartments (236 30th Avenue) – Currently under review - $2.1 million  20th Avenue 4-Plexes (269 20th Avenue) – First stage under construction - $2.1 million  Father’s House Church (Former Triangle Theater 1228 Washington Way) - $1.77 million  Longview Shooting Range (645 California Way) – Under construction - $1.6 million  Lower Columbia Longshoreman’s Federal Credit Union addition and remodel – Under construction - $1.5 million  White River Industrial Center on Baltimore St. – Constructed for $1.2 million  Chipotle Restaurant (923 Ocean Beach Highway) – Under construction - $700,000  Progress Center Addition (1600 3rd Avenue) – Under construction - $560,000

Community leaders believe Cowlitz County is well positioned for continued economic success. Longview offers new and exciting opportunities with which few others can compare. Easy accessibility to a beautiful scenic environment give Longview a unique advantage. The Columbia River, gateway to the Pacific Ocean, abundant natural resources, and a productive labor force all attest to the reason Longview continues to be one of business and industry’s top choices for location and expansion.

Meeting Community and Service Needs During 2019 and 2020, the City of Longview continued to implemented several major Council initiatives designed to meet the need for services and improve the overall quality of life in the city.

Provide sustainable water quality & environmental infrastructure  Mint Farm Regional Water Supply – On January 31, 2013, the City began serving customers from a new water treatment plant supplied by groundwater wells tapping into a deep aquifer at the Mint Farm Industrial Park. Water quality complaints have been reduced significantly as a result of optimizing the treatment process. The oxygen injection system has been completed and we are continuing to slowly increase the dissolved oxygen levels to further optimize water quality. No further studies or water treatment process modifications or additions are planned.  Water Main Replacements – Due to water quality complaints generated by the Mint Farm water supply and its effect on our aged water mains, the City has replaced thousands of feet of deteriorated water mains to improve water quality. Additional projects are planned to replace more water mains during 2021 and 2022, due to both water quality issues and the reliability of the aged water mains.

26  Sewer Pump Stations Rehabilitation - Many of the City’s sewer pump stations have reached the end of their useful life and must be replaced or upgraded to maintain reliability and safety. The City Council authorized a multi-year program to rehabilitate all of the City’s sewer pump stations, with five stations being replaced during 2016-2020. Design of five additional sewer pump stations has begun, with construction scheduled for 2021 – 2024.  Drainage Water Quality – In 2017, the City Council adopted development regulations and best management practices to reduce the amount of pollutants in storm water, irrigation, and other water runoff to the City’s drainage system. These regulations and best management practices were required by the City’s National Pollutant Discharge Elimination System (NPDES) Phase 2 Municipal Storm Water Permit. These regulations encourage use of low impact development techniques and preservation of natural or amended vegetative areas.

Improve transportation systems  New Wayfinding Signage - The City completed a project to install wayfinding signage along the major travel routes. The primary function of the signs is to point travelers to the downtown, city owned parking lots, Lake Sacajawea, Mint Valley Golf Course and other high-use points of interest.  Mid-block Pedestrian Crossings – Due to pedestrian safety concerns, the City completed construction of mid-block crosswalks on 3rd Avenue north of Hudson Street, and on 30th Avenue Columbia Valley Gardens Elementary School. Additionally a pedestrian signal was installed on 3rd Avenue at Delaware Street. City staff continues to address pedestrian safety concerns and is evaluating future crossing locations on 3rd Avenue, Kessler and Nichols Boulevard.  Sidewalk Reconstruction - In 2019 the City embarked on a contract to remove and replace approximately 60 severely damaged sections of sidewalk.  Transportation Benefit District – In late 2016, the City Council formed the Longview Transportation Benefit District to provide additional planning and funding resources dedicated to roadway maintenance and improvement. Establishing a $20 vehicle license renewal fee, the Longview Transportation Benefit District began receiving revenue in August 2017. A grind and overlay project was completed in 2019 on Nichols Blvd. The next major project scheduled for 2020 was earmarked for Oregon Way, however; work on TBD funded projects are on hold pending resolution of outstanding court cases surrounding I-976.  Street Maintenance - The 2017-2018 budget appropriated funds from TBD to add a new, 3-person street maintenance crew along with related equipment and raw materials. This funding will increase the amount of pavement maintenance and rehabilitation performed by City crews. With the passage of I-976 in January of 2020, funding for this crew was suspended and the crew was transferred to the Storm Water Department. This leaves one full-time street repair crew and one part- time street repair crew. Work includes alley maintenance, concrete repairs, ADA ramp installations, and pavement repairs for utility operations. Over three summer months both crews are combined to perform asphalt, chip seal, and crack filling operations.  Traffic Maintenance – Work to maintain the City’s traffic control infrastructure to include traffic signals, street lights, signs, pavement markings and school zone/ crosswalk flashers. The traffic division also provides traffic control for those city departments that hosta large variety of civic functions and events.  State Route 432 at 3rd Avenue Off/On Ramps Improvements – Due to the high volume of heavy trucks and other vehicles using the SR 432 off ramp to 3rd Avenue, traffic often backs up onto the outside through lane on the high-speed limited access portion of SR 432. The City obtained $4.2 million in grant funds to add a second lane to the off-ramp and modify the traffic signal to reduce queuing length and time. This project will also modify the SR 432 on-ramp to reduce the number of truck rollover accidents. Construction on this project has begun and should be completed in late 2020. 27 2021/2022 Budget Financial Summary

 State Route 432 at California Way and Industrial Way Improvements – Due to offset intersections and high volume of heavy trucks, these intersections have the longest traffic signal cycle time and heavy congestion. The City obtained a $5.3 million grant to modify the intersections and is evaluating a variety of options. Construction of the selected improvements is scheduled for the spring of 2021.  Beech Street Extension – In late 2018, based on a petition from property owners, the City Council formed Local Improvement District No. 352 to construct Beech Street from 14th Avenue to California Way, and improve Beech Street from 14th Avenue to Oregon Way. Constructing this missing section of Beech Street will improve the City’s street network and provide access to about 48 acres of commercial/light industrial land, allowing the property to develop and improve the local economy. This project is under construction and should be completed by winter of 2020-2021.  46th Avenue Reconstruction – In late 2019 the City received grant funding from both the Transportation Improvement Board and Federal Highways for the reconstruction of 46th Avenue from Ocean Beach Highway to Olympia Way. Design of the project is under way and construction should start in the spring of 2022.  RiverCities Transit – The City of Longview operates the urban area’s public transit system in Longview and Kelso in accordance with a contract with the Cowlitz Transit Authority. Since 2008, when voters approved a sales tax increase for public transit, RiverCities Transit and the Cowlitz Transit Authority developed a Transit Enhancement Plan and began implementing the identified service improvements by hiring additional drivers, purchasing additional buses, and expanding fixed route and paratransit services in the community. Due to the expanded service, RiverCities Transit outgrew its facilities at the City Shop and the Downtown Transit Center. The City was awarded a $2,784,000 federal transit grant to expand the Transit Center from 1,250 SF to 4,250SF to provide appropriate facilities for drivers and administrative staff, and to provide improved lobby, restroom, and shelter facilities for the public. The City was also awarded $1,020,022 in Surface Transportation Program Block Grants from the Longview/Kelso/ Rainier Metropolitan Planning Organization for the planning, design and construction of the Downtown Transit Center. The final design was completed in 2018 by TCF Architecture with support from the Longview Engineering Department staff, and construction began in January 2019. Construction of the facility by JH Kelly was completed in early 2020.  The City received $832,000 in Federal 5339 Grant funds from the Federal Transit Administration to replace two 35’ Gillig buses that were beyond their useful life. Those buses were received in early 2020. The new vehicles have a lower floor with ramp access that allows for faster boarding and lighting at bus stops. The vehicles are the first in the fleet to have three wheelchair securement areas rather than the standard two.  The City received $295,144 in Federal 5310 Grant funds from the Washington State Department of Transportation for the replacement of three Paratransit Cutaways used in providing our ADA service. The three buses were received in early 2020.

28 Continue effective financial management  Sound financial management – For the year ending December 31, 2019, the Government Finance Officers Association of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Longview. The Certificate of Achievement is highest form of recognition in the area of governmental accounting and financial reporting. The City of Longview has been the recipient of this prestigious award for the past thirty years.

 Grants, contributions and donations - Effective and responsible financial management of the City continues to be a top goal for the Longview City Council. Receiving $7,978,821 million in federal awards and $4,811,388 in state grant assistance helped the city to achieve this goal in 2019. City staff is very diligent in searching out and applying for federal and state funding opportunities wherever and whenever possible.  In 2019 Longview Fire Department was awarded a Staffing for Adequate Fire and Emergency Response (SAFER) federal grant in the amount of $578,976 to hire three additional Firefighter/Paramedics for a three-year performance period. This additional staffing allows the fire department to come closer to national staffing standards for the number of firefighters on scene as well as enhances the amount of times the fire department ambulance is put in service to handle “level 0” calls when there are no other ambulances available.  In 2019 the Longview Fire Department was awarded an Assistance to Firefighters Grant (AFG) in the amount of $91,000 to install a fire sprinkler system in the Station 81 headquarters facility helping to bring the station closer to modern safety standards.  The Friends of Longview Library gave approximately $25,000 and the Longview Library Foundation gave approximately $100,000 each year to support the library in purchasing materials and for library programs and events. This includes funding for audio/video equipment to expand library programming online.  The Library received a grant of $3,000 from the Southwest Washington Community Foundation to support materials for the Small Business Hub.  The Library received over $900 worth of books from the Longview Rotary Club to give out to Summer Reading participants.  The Library received COVID-19 related grants from the Washington State Library in the amounts of $3,000 for PPE and 20 Wi-Fi hotspots that will be made available for the public to checkout.  The City was awarded a $910,000 Surface Transportation Program Regional grant for upgrading the traffic signals on Ocean Beach Highway from 9th Avenue to 32nd Avenue.  The City was awarded $1,000,000 in a State Legislative Earmark for the extension of Beech Street.  The City was awarded a $243,000 Pedestrian & Bicycle Safety grant from WSDOT for crossing improvements with pedestrian activated flashing beacons on 38th and 42nd Avenues.  The City was awarded an $180,000 Safe Routes to School grant from WSDOT for upgrading the existing overhead flasher to a hybrid beacon at Washington Way and 28th.  The City was awarded two grants for the reconstruction of 46th Avenue from Ocean Beach Highway to Olympia Way. The first grant was for $3,099,546 and was from the Transportation Improvement Board. The second was for $695,773 and was from Federal Highways.

29 2021/2022 Budget Financial Summary

 The City received $95,000 from a state Department of Ecology Stormwater Grant to address stormwater capacity issues.  The City was awarded a $625,867 federal transit grant and a $373,842 state operating grant in 2019 to continue to provide ADA Paratransit service to the elderly and special needs populations who access services in the Longview/Kelso urbanized area. The service operates as RiverCities LIFT.  The City was also awarded $239,400 in federal funds to purchase three ADA accessible light-duty, propane powered small buses to sustain our ADA Paratransit Service. These vehicles will replace our three oldest in the fleet.  The City received a $113,330 Federal 5339 Small Urban Grant award in 2019. These funds will be used on various transit capital projects such as signage, benches and supervisor vehicle replacements.  The City utilized $1,898,814 in directly allocated Federal 5307 grants from the Federal Transit Administration for 2019 transit operations.  The City received $3,585,637 in Federal CARES Act funding in 2020 to sustain transit operations.

 Parks & Recreation received over $122,048 in grants so far this biennium including the following.  Longview Tourism Grant - $3,000  Weyerhaeuser Giving Fund Grant FIRST LEGO leagues - $5,000  Community Development Block Grants  Archie Anderson Super Summers Day Camp Program - $31,320  Victoria Freeman Playground Replacement - $32,728  Cloney Park Playground Replacement - $50,000  Neighborhood Park Grant Program: $50,000 in matching grants were given out to community groups. Projects included youth golf equipment for First Tee Program, installation of an indoor learning center at Mint Valley Golf Course, plans for afterschool facility at the Par 3 course, equipment for Longview Soccer Club, and the installation of a covered basketball court at Lake Sacajawea Park.  The Recreation Division received over $140,000 in contributions and donations over the biennium to support programs and special events.  One major project was the build out of the Boulevard Kitchen Renovation, fully sponsored by the Park and Recreation Foundation - $60,650.00  Longview Police Department has received over 1,000,000 in grants, contributions, or donations such as the Bullet Proof Vest Grant, Homeland Security Grant, COPs Hiring Grant as well as the following:  JAG (SRO) - Justice Assistance Grant. LPD uses the Justice Assistance Grant funds towards a portion of the School Resource Officer program.  STOP grant – The STOP grant provides funding for law enforcement training for all agencies in our county that focused on domestic violence, sexual assault and stalking. Management for this grant rotates between Cowlitz County Sheriff’s Office, Kelso Police Department and Longview Police Department.  WASPC (RSO) – LPD receives pass-through monies from Washington Association of Sheriffs and Police Chiefs to be used for managing the registered sex offender verification program. A portion of a clerical position is funded with these monies as well as overtime funds for officer to go to home the home residence of sex offenders to verify they are living at the address where they have registered.  Bullet Proof Vest Partnership Grant (BVP) – LPD received funding from the U.S. Department of Justice, Office of Justice Programs to be used to cover 50% of the costs to replace bullet proof vests for Longview officers on a yearly basis. Bullet proof vests are fitted to each officer and replaced every 5 years.

30  Improving Criminal Justice Responses to Domestic Violence (ICJR) – LPD was funded a $500,000, 3-year federal grant in 2019. The grant funds a domestic violence detective, training for police officers, victim advocates and city attorney staff. The grant also funds a contract with the Emergency Support Shelter for a Victim Advocate position who works out of the police department to assist victims of domestic violence, stalking, dating violence.  Coronavirus Emergency Supplemental Funding Program- The police department was funded $41,795 to purchase personal protective equipment, cleaning supplies and laptop computers to minimize exposure to COVID-19 as our staff responds to police calls for service.  The City was awarded a grant from the State of Washington to reconstruct the central plaza in R.A. Long Park and with help from the Koelsch family, of Koelsch Senior Communities, construct a new gazeebo on the plaza.  The City of Longview continues to receive HOME funding through the US department of Housing and Urban Development, HUD. HOME grants shared between Longview and Kelso totaled $308,769 in 2019 and $360,974 in 2020  Grants were made to community partners who undertook rent assistance programs, and construction of new affordable housing units.  The City also awarded nearly $60,000 in Document Recording Fees between 2019 2020 by agreement with Cowlitz County to address homelessness. The funds were granted to support and expand the following shelters:  The Emergency Support Shelter  Janus Youth Services  Community House on Broadway  The City of Longview was awarded $314,548 in 2019 and $333,767 in 2020 in Community Development Block Grant funds from HUD. An additional $427,348 in special CDBG funding was awarded to the City with the 2020 CARES Act, to address impacts of COVID-19.  CARES Act funding was dedicated to rent assistance, emergency assistance for utility bills, housing and moving costs, and business assistance for small businesses of 1-4 employees. All HUD grants require income qualifications.  CDBG grants have been provided for playground replacements, upgrades of non-profit shelter buildings, public facilities serving low-income neighborhoods, and rehabilitation of low-income owner occupied homes.  The City funded Public Service projects between 2019-and 2020 as follows:  $52,000 to Help Warehouse for food and fresh produce distribution  $45,000 for the Longview Super Summer affordable child care program  WellCity Award – The City has received this award for the twelfth consecutive year from the Association of Washington Cities Trust Benefit, resulting in a 2% reduction in insurance premiums. The wellness program was awarded $8,965.00 in grant funding during the biennium for ongoing wellness programs and activities.  Insurance Reductions – As a result of an annual liability program audit conducted by the Washington Cities Insurance Authority, and meeting identified risk management requirements, the city has been able to keep its general liability costs flat in the 2021-2022 budget cycle. This has occurred due to exceptional city and departmental risk management practices and performance over the last 5 year claim period. General liability coverage assessments generally increases approximately 5 to 8 percent annually.

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 Successful Bargaining Agreements – Currently in negotiations with two bargaining units. Negotiations with four bargaining units will commence in 2021. On-going labor/management meetings continue in an effort to maintain open lines of communication between union members and management. Compensation parameters have been established and approved for the 2021-2022 biennium.

Strengthen economic conditions & create new opportunities  Improving the Vitality of Downtown - Re-energizing and revitalizing Downtown Longview has been identified as an important step in helping our community to increase economic development opportunities. A community vision session in 2011 helped determine the best approach to obtaining greater economic vitality in downtown Longview. Improving the vitality of downtown Longview is a work in progress.  The City continues to implement the Downtown Action Plan that included many recommendations to help increase the health and vitality of downtown Longview. Among the actions recommended, the City is currently working on the following:  Marketing and encouraging redevelopment and new development to include market-rate residential units.  Facilitation of special events in downtown.  Encouraging expanded sidewalk business use by adjoining businesses.  Implementing temporary 15-minute curb-side pickup parking spaces on a needs assessed request basis.  The City partnered with the Downtowners organization to install and maintain flower baskets on the new street light poles along Commerce Avenue beginning in 2016. This partnership has become an annual effort to beautify downtown. It is anticipated that this partnership will continue with fresh flower baskets placed on the street light poles in late spring 2021.  The Historic Locomotive - The restored Shay locomotive resides at its original site next to the Longview Public Library in the Civic Center District. Hundreds of visitors have had the opportunity to see the inside of the Shay locomotive, ring the bell or sound the whistle thanks to volunteers who open the Shay for special events. The donation of custom staircases for use during special occasions has helped train enthusiasts get a closer look at this historic artifact. The City applied for and received a State Heritage Capital Grant to help complete the Shay pavilion. The $60,000 awarded to the City in 2018 was used to complete the project, including sidewalks, benches, lighting and interpretive panels. Improvements to the squirrel statue are also planned by community groups.  Employment Assistance – The Library and WorkSource Cowlitz/Wahkiakum continue to collaborate to bringing together job seekers and employers.  Small Business Hub - The Library has continued the Small Business Hub: a partnership of small business building organizations in and around Longview to provide the information and tools needed for people to start their own small business. The City of Longview, Kelso/Longview Chamber of Commerce, Small Business Development Center, SCORE Vancouver, Lower Columbia College, Cowlitz Economic Development Council, Cowlitz Asset Building Coalition, WorkSource, and Red Canoe collaborated with the Library to provide a starting point for entrepreneurs to find the information, resources, and contacts they need to successfully start or grow a business. The Small Business Hub print collection emphasizes Start Ups, Finances, and Management and Growth while the dedicated Small Business Research databases help identify competitors, sources of supply, sales prospects, demographics, and industry trends.

32 Our Small Business Builder database will even help you create printable business and financial plans for your new venture. The Library continues to offer small businesses and entrepreneurs many more resources including seminars from SCORE, and others, in person and online, public internet access computers with Microsoft Office Software, document scanning and copying capability, meeting rooms, projectors and screens for checkout, free Wi-Fi, and current business journals and periodicals, and Small Business Toolbox kits which contain different materials and information related to a small business topic. In addition, the Library created a page with information about small business recovery due to the upheavals caused by COVID.  Mint Valley Golf Course Management - In 2019, the City of Longview took over the complete management of Mint the Valley Golf Course. Staff implemented the business plan presented from 2018 and began the transition of management on January 1, 2019. 2019 over saw the second highest revenue in the history of the course with an increase in over 33% for overall rounds played. New programs for youth have been introduced along with a partnership with the School District. Mint Valley also provided other instructional opportunities and innovative programming.

Enhance public safety and emergency response Public safety - Public safety continued to be a priority among the Council’s strategic initiatives in 2019 and 2020. The Council stays committed to its ultimate goal of reducing crime to or below the crime rates for comparable cities in Washington State.  Drug Take-Back Events – The Longview Police Department, along with other local law enforcement agencies, has conducted four different drug “take-back” events since 2011. These events give the public another opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. The service is free and anonymous, and addresses a vital public safety and health issue. Several law enforcement agencies in Cowlitz County now offer permanent pill-disposal bins to keep unwanted prescription drugs out of the hands of drug abusers and the water supply.  Community Outreach and Partnership building – Members of the department that participate in Shop-with-a Cop each year also sit on many local community boards including the Anti-fraud coalition, Anti-Drug Coalition, Cowlitz Chaplaincy, Head Start, Emergency Support Shelter, United Way and others.  Coffee with a Cop - Longview Police Department continues to participate in a national program aimed at bringing police officers and community members together for informal conversations about public topics of interest. Beginning in 2016, Longview Police Department has partnered with several different local coffee shops holding several Coffee-with-a Cop events per year.  Traffic Safety Emphasis – LPD works with Cowlitz County and other law enforcement agencies to increase traffic patrols on pre-selected dates targeting DUI, seat belt violations, and texting and driving distractions. School resource officers participate and help coordinate the Every 15 Minutes program at R.A. Long high school. LPD assigned a Sergeant to focus on traffic enforcement in 2016 and added an officer to the Traffic Unit in 2018.

33 2021/2022 Budget Financial Summary

 Online reporting - Citizens are encouraged to file online reports for minor incidents where no suspects are involved. Citizens may file online reports for hit-and-run accidents resulting in no injuries, identity theft, lost property, theft, vandalism, and theft and vandalism of a vehicle. Besides freeing up officers to deal with more serious crimes, the online reporting system is convenient for citizens because they can file and print their own reports at any time of the day without having to wait for an officer to arrive. The web-based crime reporting service is available 24/7 through the City’s web site.  In 2016, the police department expanded the use of online reporting to businesses for a merchant shoplifting reporting program. In 2019, police staff trained additional local merchants in the merchant shoplifting reporting program. Security staff for several local retail businesses can complete shoplifting reports via this system which are then forwarded to officers for review. This program saves time as officers do not have to personally respond to the store and complete a report.  Citizens Police Academy - Longview Police Department partners with Kelso Police Departments and Cowlitz County Sheriff’s Office to host an annual Citizens Police Academy. The goal of the Academy is to provide useful information to citizens about law enforcement within our community. Instruction will be provided on Patrol, SWAT, Drugs, Use of Force, Street Crimes, K-9 and much more. The academy will offer tours of the Cowlitz County Jail, 911 dispatch center and students will be allowed to participate in a 3-hour police ride-a- long.  Longview Police engages with the community through social media outreach - In 2015, Longview Police Department began using both Facebook and Twitter to communicate with the public. The department uses social media to interact with the community and share valuable information in a timely manner. The department also receives input and feedback from the community regarding police services via social media messaging. The information shared has varied from crime prevention tips to photos of suspects where the community’s help is needed for identification. The police department has also used social media to help: locate the owners of lost property; locate missing children; share street closure information; educate the public on school zone safety and enforcement; share event information for drug take back days; advertise LPD Open House;and, new officer testing dates/locations and more.  Crime analysis tool available to the public - Longview and area residents can learn more about the types of police calls in their neighborhoods, thanks to a public crime map developed by BAIR Analytics and offered by RAIDS Online. According to the website, “RAIDS Online connects law enforcement with the community to reduce crime and improve public safety. Crime mapping helps the public get a better idea of the crime activity in their area so they can make more informed decisions about how to stay safe.”  Domestic Violence Detective- In 2018, the police department assigned an additional officer to the Criminal Investigations Unit to focus on domestic violence crimes. Domestic violence crimes are our #1 violent crime in the City of Longview. In 2019, the police department applied for and was awarded a federal grant to add a second domestic violence detective to the Criminal Investigations Unit. The second domestic violence detective position is grant funded through September 30, 2022.  Public Disclosure Technician –The police department hired a .5 FTE Public Disclosure Technician in 2017 to process the increased number and complexity of police public disclosure requests. The police department is working to expand this position to include work on records management, records retention and destruction for the police department. In 2016, the city purchased a software system (Gov QA) to allow citizens to submit public records requests online.Gov QA has improved the efficiencies of processing records requests as well as the documentation of all actions taken in processing each request.

34  Police Cadet Program – The Longview police cadet program was started in 2013 and has been successful in preparing cadets for careers in law enforcement. The program educates and involves youth (ages 16-20) in police operations. The goal is to prepare youth for entering this field of work once they turn 21 years old. The hope is that cadets will apply with Longview Police Department upon completion of the program. In 2017 and 2020, two cadets were hired by the Longview Police Department, while another Longview cadet was hired by Lacey Police in 2018.  Fire and EMS Response - The Longview Fire Department annually responds to over 5,300 calls for service. Emergency response performance is measured by a “Standard of Cover” as adopted by the Longview City Council. The standard for EMS events is to have the first unit arrive in 6 minutes or less and have advanced life support (Paramedics) on scene within 8 minutes 90% of the time. Longview Fire achieved 75% for the first unit arrival and 92% for advanced life support in 2019. The standard for structure fire response is to have the first unit arrive in 6 minutes or less and have the full alarm assignment arrive within 9 minutes 90% of the time. Longview Fire achieved 89% for the first unit arrival and 44% for the full alarm in 2019.  EMS Services - Approximately 76% of the calls for service are for emergency medical service (EMS) and Rescue. Longview Fire has 33 Firefighter/EMT’s who provide basic life support and 13 Firefighter/ Paramedics who provide advanced life support. In 2019, Longview Fire responded to 85 reports of cardiac arrest and were able to restore the patient’s heartbeat to spontaneous circulation in 51 cases (59% of the time). The Fire Department ambulance was put in service 117 days and performed 146 patient transports when there were no other ambulances available in 2019.  Special Operations - Longview Fire provides Special Operations services that consists of Technical Rope Rescue and Marine Firefighting and Confined Space Rescue. Each Special Operation team is made up of firefighter specialist positions that receive highly technical training in each of the Special Operation disciplines.

Address quality of place issues  Community events - Longview Parks and Recreation hosted Concerts at the Lake, Movies at the Lake, $5 5k Run Series, Adult Softball Tournaments, Family Outdoor Adventure, Swim Dash Splash Triatholon, Passport to Healthy Families, Handcrafted Holiday Bazaar, Father Daughter Ball, Seahawk Poker Walk, Breakfast with Santa, Extreme Machines, Mud Day, The Big Day Wedding & Event Expo, Crafted Brewfest and many other community wide events. Longview residents continue to take pride in the community by supporting and participating in outside hosted annual events such as Squirrel Fest, Cardboard Boat Regatta, Go 4th Festival at the Lake, Christmas Parade and tree lighting, Unique Tin Car Cruise, Longview Soccer Club’s Kickoff Classic, and numerous health and fitness walks and runs. They also host assorted sporting events like this year’s Babe Ruth World Series and Cowlitz Black Bears baseball.  Facilities joint use agreement - A renewed facilities joint-use agreement and collaboration with the Longview School District continues to be a positive relationship that benefits students and community residents.

35 2021/2022 Budget Financial Summary

 Neighborhood Park Grants – This long-standing program administered by the Parks and Recreation Department continues to leverage volunteer hours and financial contributions from a variety of organization to upgrade existing facilities and install new ones throughout the City’s parks system. An exciting example is the newly refurbished courts at Vandercook Park that host both tennis and pickleball courts.  Tree City USA designation – The National Arbor Day Foundation once again named Longview a Tree City USA. 2020 is Longview’s 37th year as an official Tree City. The designation of Tree City USA gives Longview access to special Federal & State grant opportunities relating to the care, management, and replacement of trees in our beautiful urban forest. Parks and Recreation partners with local elementary schools to create a contest for Arbor Day. Northlake Elementary School was the winning school and a tree was planted in their school garden in honor of Arbor Day 2018.  Partner with Outside Agencies - In 2019-2020, department provided free summer youth programming in partnership with Youth & Family Link and the YMCA of Southwest WA through the CDBG funded Super Summers program. The department continued partnerships with Longview School Districts operating out-of- school programs at five Longview Elementary Schools, often partnering with the Lower Columbia School Gardens and other agencies to provide diverse learning and recreation opportunities to participants.  Grants and Foundation Partnership to improve Teen Boulevard Programs - Longview Parks and Recreation in partnership with the Longview Parks and Recreation Foundation and numerous other local granting agencies and businesses, received over $50,000 to establish the Teen Life Skills Program—an effort to improve resources for local teens participating in the Teen Boulevard programming. Funding allowed volunteers to install a large raised bed garden and renovate the Elk’s Memorial Building kitchen space to be a fully functioning kitchen to accommodate cooking lessons, computer use, nutrition and financial acuity classes. Funding also covered refurbishment of the entire floor and paint throughout the building, improving this community asset for teens and community members who utilize the space.  Community Partnerships - Longview Parks and Recreation and Delaware Plaza are working together to provide the Golden Apple Preschool. The preschool is an intergenerational opportunity for seniors in the retirement facility to interact with the preschool children benefiting both groups. Longview Parks and Recreation and Fibre Federal Credit Union worked together in 2019 and 2020 to offer regular financial planning classes and Teen Late Nights, including a Halloween Bash that was attended by over 90 local teens. The popularity of these events has proven the great need for safe, supervised teen activities in the community.  “Drive In” Movie at Mint Valley Golf Course – Parks and Recreation utilized their own inflatable movie screen to offer 5 summer movies, finishing with a screening of the classic golf movie “The Greatest Game Ever Played” at Mint Valley Golf Course. Viewers were able to sit in golf carts and enjoy popcorn and the movie, as well as food and beverages served by the Mint Valley’s Moe’s Grill.  Connect with local employers and partners –Drafted welcome packet of information regarding Parks and Recreation opportunities and benefits. Attended numerous business fairs to educate employees of the value of Parks and Recreation, including Youth & Family Link, Cowlitz PUD, and Cowlitz County.  Fire Prevention Week and Open House - Each year the Longview Fire Department invites area pre-school, kindergarteners, and 1st graders to tour the fire station during Fire Prevention Week learning about fire safety. The week concludes with an Open House event on Saturday. In 2019, we had over 400 children, teachers and parents visit during the week and the Open House event had over 500 people attend. Special guests included Smokey Bear, Sparky the Fire Dog, Cowlitz County Search and Rescue, Cowlitz County Head Start, Longview Police Department, Longview Parks and Recreation, Safe Kids Lower Columbia, Cowlitz County Dive Team, Cowlitz County DEM and St. Johns Trauma unit.

36  Community Risk Reduction - Longview Fire personnel participated in 13 Safe Kids events in 2019 and assisted with the distribution of bicycle helmets, outfitting Life Jacket Loaner boards and performed child car seat installations. Station 81 headquarters is now listed on the national register as having a “Car Seat Check Station” so that car seat checks are available between car seat clinics. Longview Fire also provides fire and life safety Public Education programs and events for the community throughout the year.  Summer is the season for child window falls – Longview Fire Department in conjunction with KLTV and other public education experts, produced a video to help create awareness for child fall hazards; especially young children from windows in homes. Along with the awareness education, LFD recommends the installation of window fall prevention devices that are difficult for young children to operate but are easily opened by an older child or adult. The video was shared several times this summer on social media.  Library continues High-Tech focus – The Library continues its focus on technology access/training through a number of programs and events. The Library expanded its Ask a Librarian service to include technology-related questions, or problems, involving laptops, tablets and smartphones. The Library offers access to over 66,000 e-Books, e-Audiobooks, digital music and movies through the Washington Anytime Library and Hoopla continuing to provide the public access to digital material. The Library has seen an over 40% increase in the circulation of digital items during COVID. Due to this demand, the Library increased the number of items that patrons could check out via Hoopla due to COVID. We also have access to the online databases Consumer Reports, the Auto Repair Center, Reference USA, Small Business Builder, and ProQuest. The Library moved to a new computer system called Polaris. This has allowed us to do make a much more user-friendly catalog and allowed us to do new things such as offering online library card registration. The Library will be purchasing its first self-checkout units to allow patrons the option for a quick and easy way to checkout materials if they don’t have the need to interact with a staff member.  Library events – Youth and Adult programming continues to grow and has moved online. The Library’s YouTube channel now has a variety of different events and programs including Story Times, craft events, painting classes and other library programs or information. The Library is looking to expand these services during the COVID crisis and begin adult programs, including Washington Humanities events and Northwest Voices via YouTube. The Library also began a weekly podcast called Your Shelf or Mine where books, and other library- related topics, are discussed. The  Drive Thru Pickup – Due to the COVID crisis, the Library instituted a program that allowed the Drive Thru pickup of reserved items. It has been growing steadily and the Library is already planning to continue this program even when the building re-opens to the public.  Life-Long Learning - The Library offered numerous education opportunities including Early Literacy programs for children from birth through pre-K including story times and the 1,000 Books Before Kindergarten program. The Library also offered arts and craft classes for adults, financial literacy classes, programs on avoiding identity theft, adult literacy through our Project Read program, and numerous technology-related classes.  Historical Resources – The Library has expanded its online historical resources beyond just the Longview Room’s photographs but also now includes The Log of Long-Bell, the Log (which was the company newsletter from Weyerhaeuser’s Longview branch), and much more.  Civic Engagement Corner – The Library also created a Civic Engagement Corner with a rotating collection of books and other materials related to keeping an informed citizenry— one of the most important missions that a library can have. This Corner also provides information of how people can become involved locally, statewide, and nationally in the public forum. 37 2021/2022 Budget Financial Summary

 RiverCities Transit Community Events – RiverCities Transit continues to make participation in community events a priority. This allows staff to interact and gain input from those who currently use the system. It also provides community members who may never have thought of transit as an option the opportunity to become familiar with our services. RiverCities Transit participates in community events by displaying a bus to allow children and adults the opportunity to see the bus up close. Flyers and brochures are also available to educate the public on various services RCT offers. Staff participates in the following community events:  Earth Day  Extreme Machines  Senior Connections Fair  Building Bridges at Cowlitz Expo  Free Rides for events - The Cowlitz Transit Authority has committed to provide free rides to our community to allow for greater access to events. The Veteran’s Stand Down and Project Homeless Connect are two standing dates that RCT will provide free transit service to the entire community.  Free Youth Pass - In 2020, the CTA Board authorized the issue of free transit passes to youth age 6-18 to encourage youth ridership in the community.  One-on-one Training - RCT staff have provided in person group training and one-on-one training to show students, social service providers, and community members how to ride the bus. Providing this training has helped riders learn how to catch a bus, read a schedule, pay a fare and let the driver know where to stop. Staff will continue to provide this training as requested.

Preserve and enhance neighborhoods  Cleaner Neighborhoods – Several projects and programs within the City are valuable resources for making our community a better place to live.  City Beautiful – The tenth annual City Beautiful Month (September 2020) gave residents an opportunity to get rid of items around the house. Additionally, the City also used this as an opportunity to remind residents about keeping their respective alleys clean, if applicable, including such areas as cutting overgrown grass, weeds and other vegetation. In the ten years, this event has redeemed 11,146 free disposal coupons, while disposing of 2,592 tons of garbage at a disposal cost of $152,481.  Efforts to reduce recycling contamination – Educational efforts by the Solid Waste and Recycling Division resulted in the recycling contamination rate dropping from 45% in 2006 to approximately 15% in 2020. The recycling website and Facebook page that were developed in July 2011 continue to be a valuable resource for residents to learn more about the benefits of recycling and ways to reduce contamination.  Citywide alley cleanup Events – Since 2015, the City has coordinated a quarterly cleanup whereby all alleys within the city are cleaned up, removing discarded materials left in the alleyways. During this period, a total of 197 tons have been collected at a disposal cost of $9,850.  Neighborhood cleanup Events – Since 2008, the City has coordinated cleanup events with groups of individual homeowners and other volunteer groups to work together to clean up the alleys in their neighborhoods. During this period, there have been a total of 36 events (109.1 tons with a disposal cost of $5,430) and 4 events for homeless camps (13.5 tons with a disposal cost of $672. Collectively, these forty events have reported total of 3,482 volunteer hours.  Highlands Neighborhood Association (HNA) - With the formation of the HNA back in 2008, a revitalization plan was developed that focuses on crime prevention, housing, economic development, and public facilities and services. This program continues strong with the completion of projects such as the Highlands Neighborhood Trail and the Highlands Community Center/Library. The Neighborhood Association applied for and received Community Development Block Grant funds to update the 2008 revitalization plan. Completion of the updated plan was accomplished in 2019 and work continues to revitalize the Highlands.

38  Zoning Code Update – Staff continues to update the Longview City Zoning Code to facilitate highest and best use of properties, preserve neighborhoods, encourage economic growth and activity, and provide a quality sense of place.  Comprehensive Plan Update – Staff completed work with the Planning Commission to update the 2006 Comprehensive Plan. Adoption of the updated Comprehensive Plan occurred in 2019 and will guide development in of Longview to achieve the community’s goals and vision.  RA Long Park Upgrades – The City Council, Longview Parks and Recreation Board, and the Longview Historic Preservation Commission all previously approved a RA Long Park Master Plan to replace damaged concrete and upgrade the park to attract more visitors and events. In 2016, Phase 1 was completed by moving the bust of RA Long from the park to the south plaza at the Longview Public Library, and demolishing the concrete central plaza. After securing a state grant to supplement local funding, Phase 2 is began construction in the fall of 2018 and is scheduled to be finished in January 2019. Phase 2 will construct a new concrete central plaza with accessible ramps, erect a 35-foot diameter gazebo, and upgrade the park electrical service to provide more power for community events, upgrade park lighting, and replace damaged concrete pathways and sidewalks in and around the park.  Archie Anderson Playground Installment – Installed in April 2019 with a matching CDBG Grant, the city is able to provide its first fully inclusive playground including a wheel chair accessible teeter-totter.  Victoria Freeman Playground Installment – Installed in September 2020 with a matching CDBG Grant.

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40 Budget Summary General Governmental Functions General Governmental Functions relate to the types of services that are customarily provided by local government in Washington State. These services are administered through the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, and Fiduciary Funds. These funds account for the major portion of the City’s operating revenues and expenditures. The General Governmental Functions provide the greatest opportunity for discretionary decision-making by the City Council and thus become the primary focus of the City’s budgetary decision-making. Financial and Budgetary Controls Financial and budgetary controls are derived from the City’s accounting system that is based on a fund structure. Funds are independent fiscal and accounting entities containing a self-balancing set of accounts segregated for the purpose of carrying out basic functions in accordance with special regulations, restrictions or limitations. The funds may be further broken down internally into departmental or other purposes for better budgetary control and performance monitoring. Longview uses the same system of accounts and funds for budgeting, financial control and reporting. These funds and their account groups are summarized into the standard fund types and account groups in accordance with the standards set forth by the Governmental Accounting Standards Board. In addition to being the basis for the accounting system, the funds also provide the legal budgetary control level for all expenditures. The City Council approves appropriations for all budgeted funds. The department heads are responsible to the City Manager for monitoring individual budgets. Compliance with State Budgeting, Accounting and Reporting System (BARS) The City of Longview is required by the State of Washington to comply with the Budgeting, Accounting and Reporting System (BARS) prescribed by the Washington State Auditor as authorized under the Revised Code of Washington (RCW) 43.09.200 and 43.09.230. The RCW also provides for annual independent audits by representatives of the Office of the State Auditor and requires the submission of annual financial reports to their office for review. The financial system used incorporates many financial and administrative controls that ensure the safeguarding of City assets and the reliability of financial reports. These controls are carefully designed to provide some reasonable assurance that all transactions are executed in accordance with management authorization and recorded in conformity with Generally Accepted Accounting Principles (GAAP). These controls also provide for the accountability of and control over City assets and obligations. For these reasons, a high priority is placed on internal control systems. The City of Longview maintains tight budgetary controls. The objective of these budgetary controls is to ensure compliance with the requirements included in the biennial appropriated budget approved by the City Council. Project-length financial plans and programs are approved by the Council for the projects and goals of the various capital improvement funds of the Capital Projects and Enterprise fund types. The level of budgetary control (the level at which expenditures cannot legally exceed appropriations) is established at the fund level and authorized by the City Council. Therefore, a budget increase or decrease must be authorized by the City Council. The City of Longview continues to meet its responsibility for sound financial management. 41 2021/2022 Budget Financial Summary Fund Accounting The accounts of the City of Longview are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. The City of Longview’s resources are allocated to and accounted for individual funds depending on what they are to be spent for and how they are controlled. The individual funds are summarized by fund type in the financial statements. The following are the fund types and account groups used by the City of Longview. Governmental Fund Types All governmental funds are accounted for on a “flow of current financial resources” measurement focus. This means that only current assets and current liabilities are generally included on balance sheets. Their reported fund balance is considered a measure of “available expendable resources.” Governmental fund operating statements focus on measuring changes in financial position, rather than net income; they present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in spendable resources.  General Fund - The General fund is the general operating fund of the City of Longview. It is used to account for all financial resources and transactions of the City, except those required to be accounted for in another fund.  Special Revenue Funds - Special Revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes as required by law or administrative regulation.  Debt Service Funds - Debt Service funds are used to account for the accumulation of resources for, and the payment of long-term debt principal, interest and related costs.  Capital Projects Funds - Capital Projects funds are used to account for financial resources which are designated for the acquisition or construction of general governmental capital improvements.  Permanent Funds - Permanent funds are used to report resources that are legally restricted where only earnings, and not principal, may be used to support government programs. Proprietary Fund Types Proprietary funds are accounted for on a “flow of economic resources” measurement focus. All activities where net income and capital maintenance are measured are reported in proprietary funds. This means that all assets and all liabilities (whether current or non-current) associated with their activity are reported on their balance sheet. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund operating statements report all increases (revenues) and decreases (expenses) in economic activities toward the determination of net income.  Enterprise Funds - Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private enterprise where the intent of the governing body is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy management control accountability or other purposes.  Internal Service Funds - Internal Service funds are used to account for the financing of goods or services provided to other departments or funds of the City of Longview or to other governmental units on a cost- reimbursement basis.

42 Fiduciary Fund Types Fiduciary funds account for assets held by the City of Longview on behalf of individuals, private organizations, other governments and other funds. Pension Trust Funds - Pension Trust funds are used to account for the operations of trusts established for employee retirement benefits. They are accounted for in essentially the same manner as proprietary funds because of the need for determining the periodic income of the trust.

43 2021/2022 Budget Financial Summary Revenue Sources for the City of Longview

2018 2019 2020 2021 2022 Actual Actual Budget Budget Budget

Taxes $29,283,180 $29,601,870 $30,053,620 $30,416,870 $31,037,640 Taxes are assessments levied to support a wide variety of governmental services. Major General Fund tax sources for the City of Longview include property taxes, retail sales and use taxes, business and occupation taxes, and utility taxes. Combined, these resources account for 74% of General Fund revenue. Tax revenue estimates for the upcoming biennium reflect a 1.2% increase in 2021 and a 2.0% increase in 2022. These estimates provide for modest growth in virtually all segments of tax revenue. Property tax revenue estimates assume a 1% increase in addition to annexation and new construction. Sales and B&O tax estimates provide for moderate increases reflecting modest improvement in the area economy. Minor growth in 2021-22 utility tax revenue estimates are projected due to anticipated utility rate hikes in private utilities. 2021 city utility tax revenue estimates remain flat as there were no increases in 2021 utility rates. Estimates are based upon historical trends and a general awareness of occurrences in the local economy.

Licenses & Permits $1,028,840 $849,170 $1,021,310 $905,930 $921,650 Licenses are required for certain trades, occupations or activities for regulatory purposes. Permits are issued to aid in regulation of new business activity. Major license and permit revenue sources are business licenses and building-related permits. License and permit revenues for 2021-22 reflect a continuation of modest construction activity within the community. Business license activity remains stable.

Intergovernmental $2,315,400 $5,120,950 $2,589,020 $3,479,470 $3,492,400 Intergovernmental revenues consist of grants and remittances to the City from other governmental units. Federal grants, state-shared revenues and inter-local distributions are primary sources of intergovernmental revenue. The increase in 2021-22 intergovernmental revenue is due to the City’s participation in the Ground Emergency Transport (GEMT) Program. GEMT revenue estimates account for approximately $1.25 million annually in the upcoming biennium.

Charges for Services $3,441,180 $3,393,860 $3,537,420 $3,420,010 $3,554,340 Charges for Services represent revenues received for various programs/services provided to the community. Examples of fees collected include those for recreational programs, engineering and administrative overhead charges. The City of Longview also receives fees from area industries located just outside of city limits for fire protection services. Overall, 2021-22 charges for services revenue estimates provide for inflationary increases to the various programs and services within this category.

44 2018 2019 2020 2021 2022 Actual Actual Budget Budget Budget

Fines & Forfeits $463,310 $571,120 $441,700 $511,850 $519,770 Fines and forfeits are terms used to describe a source of general revenue that is perhaps more properly described as penalties. Primary sources of revenue received from penalties include municipal court fines and library fines. The projected increase in fines and forfeits is the result of an anticipated uptick in municipal court activity following the COVID-19 pandemic.

Miscellaneous $498,780 $528,930 $383,200 $373,530 $393,300 Miscellaneous revenue is received from sources not provided for elsewhere within the BARS revenue account structure. Interest earned on investments, income from rentals and leases of City-owned property and private contributions are the primary sources of revenue in this category. The 2021-22 miscellaneous revenue estimates reflect a decrease in investment income. Investment income has fallen sharply in recent years due to an overall decline in interest rates. Actions by the Federal Reserve Board have a direct impact on interest rates and the City’s investment income. Modest increases on City owned facilities have been incorporated into the revenue estimates for space and facility rents in 2021-22.

Other Financing Sources $167,700 $543,550 $539,450 $36,000 $38,500 Other Financing Sources represent general revenue received from proceeds derived from the sale of fixed assets and inter-fund transfers received from other funds. The 2021-22 decrease in Other Financing Sources stems from a reduction in inter-fund transfers from the Transportation District Fund. Throughout 2020, General Fund enhanced street maintenance activities and corresponding inter-fund transfers were suspended awaiting the Washington State Supreme Court’s ruling on Transportation District fees.

TOTAL REVENUES $37,198,390 $40,609,450 $40,769,420 $41,467,230 $42,106,500 In total, 2021-22 General Fund revenue estimates reflect increases of 1.7% and 1.5% respectively, in the upcoming biennium. The crisis associated with the COVID-19 pandemic has created significant challenges in forecasting for the upcoming biennium. While there is uncertainty that stems from the economic downturn, a renewed hope lies in the wings as vaccinations appear on the forefront. In the 2021-22 biennium, the City sustains its principles in providing for “conservative,” yet “realistic” revenue forecasts. The City’s recent investment in infrastructure projects such as the Tenant Way/Industrial Way corridor, construction of Beech Street and the Downtown Streetscape project are representative of the investments taking place which are anticipated to yield great dividends. The City’s investments combined with those from the business sector have established a rekindled spirit and sense of optimism for economic growth here in Longview. 45 2021/2022 Budget Financial Summary Revenue Summary for 2021 By BARS Revenue Source

B.A.R.S. I.D. 308 310 320 330 340 350 360 380 390 Total Revenue Type Beg. Res. Taxes Lic. & Permits Intergov. Chg. For Ser. Fines & Forf. Misc. Non-Rev. Other Rev. Revenue

GENERAL FUND: General Fund $2,323,570 $30,416,870 $905,930 $3,479,470 $3,420,010 $511,850 $373,530 $0 $36,000 $41,467,230

SPECIAL REVENUE FUNDS: Arterial Street Fund $0 $0 $0 $1,598,000 $0 $0 $0 $0 $0 $1,598,000 Downtown Parking Fund $23,070 $0 $0 $0 $0 $28,350 $21,650 $0 $0 $73,070 Economic Development Fund $0 $545,000 $0 $0 $0 $0 $5,250 $0 $0 $550,250 HOME Fund $0 $0 $0 $280,000 $30,000 $0 $0 $0 $0 $310,000 CDBG Entitlement Fund $0 $0 $0 $360,000 $0 $0 $0 $0 $0 $360,000 Criminal Justice Assistance Fund $411,850 $0 $0 $506,770 $0 $0 $15,000 $0 $0 $933,620 Public Safety Fund $3,000 $0 $0 $63,000 $0 $0 $4,000 $0 $0 $70,000 Tourism Special Revenue Fund $32,000 $32,500 $0 $0 $0 $0 $0 $0 $0 $64,500 Transportation Benefit District $0 $620,000 $0 $0 $0 $0 $0 $0 $0 $620,000 Parks & Rec. Memorial Trust Fund $43,400 $0 $0 $0 $0 $0 $1,000 $0 $0 $44,400 Northwest Health Foundation $16,500 $0 $0 $0 $0 $0 $0 $0 $0 $16,500

DEBT SERVICE FUNDS: 2007 L.T.G.O. Bond Fund $9,310 $0 $0 $0 $0 $0 $216,200 $75,000 $279,300 $579,810 Special Assessment Bond Red. Fund $0 $0 $0 $0 $0 $0 $42,500 $0 $0 $42,500 Special Assessment Guaranty Fund $0 $0 $0 $0 $0 $0 $0 $0 $15,000 $15,000

CAPITAL PROJECTS FUNDS: Capital Projects Fund $241,980 $375,000 $0 $67,000 $0 $0 $15,000 $0 $0 $698,980 L.I.D. Construction Fund $0 $0 $0 $0 $0 $0 $0 $0 $350,000 $350,000 Building Replacement Fund $258,500 $0 $0 $0 $0 $0 $1,500 $0 $200,000 $460,000

PERMANAENT FUNDS: Library Memorial Trust Fund $0 $0 $0 $0 $0 $0 $1,000 $0 $0 $1,000

ENTERPRISE FUNDS: Water Operations Fund $375,240 $0 $0 $0 $5,758,720 $0 $6,250 $0 $0 $6,140,210 Water Construction Fund $493,770 $0 $0 $0 $3,200,000 $0 $51,500 $120,000 $0 $3,865,270 Sewer Operations Fund $433,550 $0 $0 $0 $12,507,500 $0 $12,000 $90,860 $0 $13,043,910 Sewer Construction Fund $0 $0 $0 $0 $0 $0 $80,000 $0 $840,000 $920,000 Filter Plant Operations Fund $0 $0 $0 $0 $1,305,240 $0 $0 $0 $0 $1,305,240 Filter Plant Construction Fund $0 $0 $0 $0 $0 $0 $97,500 $0 $552,500 $650,000 Sanitary/Recycling Fund $176,590 $0 $0 $0 $5,523,500 $0 $48,000 $0 $0 $5,748,090 Storm Water Fund $141,830 $0 $0 $50,000 $5,741,190 $0 $10,000 $0 $0 $5,943,020 Transit Operations Fund $0 $0 $0 $5,237,240 $3,796,530 $0 $24,160 $0 $4,000 $9,061,930 Mint Valley Golf Fund $41,790 $0 $0 $0 $790,500 $0 $300,500 $0 $0 $1,132,790 Mint Valley Racquet Fund $0 $0 $0 $0 $0 $0 $0 $0 $6,320 $6,320

INTERNAL SERVICE FUNDS: Insurance Reserve Fund $0 $0 $0 $4,250 $0 $0 $1,919,520 $0 $0 $1,923,770 Office Equipment Reserve Fund $879,960 $0 $0 $0 $62,750 $0 $1,271,340 $0 $0 $2,214,050 Equipment Rental Operations Fund $0 $0 $0 $0 $58,710 $0 $2,124,460 $0 $0 $2,183,170 Equipment Rental Reserve Fund $0 $0 $0 $0 $0 $0 $2,228,620 $0 $528,000 $2,756,620 Facility Maintenance Fund $0 $0 $0 $0 $0 $0 $789,130 $0 $0 $789,130 Unemployment Compensation Fund $0 $0 $0 $0 $0 $0 $71,630 $0 $0 $71,630 Employee Benefits Reserve Fund $203,360 $0 $0 $0 $0 $0 $371,640 $0 $0 $575,000

FIDUCIARY FUNDS: Firemen's Pension Fund $73,160 $0 $0 $59,750 $0 $0 $10,100 $0 $563,970 $706,980

TOTALS $6,182,430 $31,989,370 $905,930 $11,705,480 $42,194,650 $540,200 $10,112,980 $285,860 $3,375,090 $107,291,990

46 Revenue Summary for 2021 Pie Chart Breakdown

Other Revenue Non-Revenue 3% Beginning Resources 0% 6% Misc. 9% Fines & Forfeits 1%

Taxes 30%

Charges for Licenses Services & Permits 39% 1%

Intergovernmental 11%

47 2021/2022 Budget Financial Summary Revenue Summary for 2022 By BARS Revenue Source

B.A.R.S. I.D. 308 310 320 330 340 350 360 380 390 Total Revenue Type Beg. Res. Taxes Lic. & Permits Intergov. Chg. For Ser. Fines & Forf. Misc. Non-Rev. Other Rev. Revenue

GENERAL FUND: General Fund $2,148,900 $31,037,640 $921,650 $3,492,400 $3,554,340 $519,770 $393,300 $0 $38,500 $42,106,500

SPECIAL REVENUE FUNDS: Arterial Street Fund $0 $0 $0 $4,620,000 $0 $0 $0 $0 $0 $4,620,000 Downtown Parking Fund $23,070 $0 $0 $0 $0 $28,350 $21,650 $0 $0 $73,070 Economic Development Fund $0 $545,000 $0 $0 $0 $0 $5,250 $0 $0 $550,250 HOME Fund $0 $0 $0 $285,000 $30,000 $0 $0 $0 $0 $315,000 CDBG Entitlement Fund $0 $0 $0 $360,000 $0 $0 $0 $0 $0 $360,000 Criminal Justice Assistance Fund $486,190 $0 $0 $379,770 $0 $0 $15,000 $0 $0 $880,960 Public Safety Fund $59,000 $0 $0 $567,000 $0 $0 $4,000 $0 $0 $630,000 Tourism Special Revenue Fund $26,500 $40,000 $0 $0 $0 $0 $0 $0 $0 $66,500 Transportation Benefit District $0 $620,000 $0 $0 $0 $0 $0 $0 $0 $620,000 Parks & Rec. Memorial Trust Fund $43,400 $0 $0 $0 $0 $0 $1,000 $0 $0 $44,400 Northwest Health Foundation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

DEBT SERVICE FUNDS: 2007 L.T.G.O. Bond Fund $6,460 $0 $0 $0 $0 $0 $216,200 $80,000 $284,350 $587,010 Special Assessment Bond Red. Fund $0 $0 $0 $0 $0 $0 $42,500 $0 $0 $42,500 Special Assessment Guaranty Fund $0 $0 $0 $0 $0 $0 $0 $0 $15,000 $15,000

CAPITAL PROJECTS FUNDS: Capital Projects Fund $533,350 $385,000 $0 $4,000 $0 $0 $16,500 $0 $0 $938,850 L.I.D. Construction Fund $0 $0 $0 $0 $0 $0 $0 $0 $350,000 $350,000 Building Replacement Fund $0 $0 $0 $0 $0 $0 $1,000 $0 $200,000 $201,000

PERMANENT FUNDS: Library Trust Fund $0 $0 $0 $0 $0 $0 $1,000 $0 $0 $1,000

ENTERPRISE FUNDS: Water Operations Fund $334,080 $0 $0 $0 $5,814,720 $0 $6,250 $0 $0 $6,155,050 Water Construction Fund $776,200 $0 $0 $0 $3,231,000 $0 $51,500 $120,000 $0 $4,178,700 Sewer Operations Fund $828,290 $0 $0 $0 $12,632,500 $0 $12,000 $90,860 $0 $13,563,650 Sewer Construction Fund $0 $0 $0 $0 $0 $0 $80,000 $0 $1,305,000 $1,385,000 Filter Plant Operations Fund $0 $0 $0 $0 $1,285,200 $0 $0 $0 $0 $1,285,200 Filter Plant Construction Fund $0 $0 $0 $0 $0 $0 $22,500 $0 $127,500 $150,000 Sanitary/Recycling Fund $252,470 $0 $0 $0 $5,606,300 $0 $48,000 $0 $0 $5,906,770 Storm Water Fund $98,880 $0 $0 $0 $5,738,810 $0 $10,000 $0 $0 $5,847,690 Transit Operations Fund $0 $0 $0 $2,757,760 $4,933,650 $0 $23,770 $0 $4,000 $7,719,180 Mint Valley Golf Fund $28,220 $0 $0 $0 $806,500 $0 $303,500 $0 $0 $1,138,220 Mint Valley Racquet Fund $0 $0 $0 $0 $0 $0 $0 $0 $6,550 $6,550

INTERNAL SERVICE FUNDS: Insurance Reserve Fund $0 $0 $0 $4,250 $0 $0 $2,023,810 $0 $0 $2,028,060 Office Equipment Reserve Fund $750,000 $0 $0 $0 $62,750 $0 $1,271,340 $0 $0 $2,084,090 Equipment Rental Operations Fund $0 $0 $0 $0 $60,470 $0 $2,128,660 $0 $0 $2,189,130 Equipment Rental Reserve Fund $0 $0 $0 $0 $0 $0 $2,228,620 $0 $250,000 $2,478,620 Facility Mainenance Fund $0 $0 $0 $0 $0 $0 $802,790 $0 $0 $802,790 Unemployment Compensation Fund $0 $0 $0 $0 $0 $0 $72,890 $0 $0 $72,890 Employee Benefits Reserve Fund $203,360 $0 $0 $0 $0 $0 $371,640 $0 $0 $575,000

FIDUCIARY FUNDS: Firemen's Pension Fund $86,840 $0 $0 $62,500 $0 $0 $10,100 $0 $569,440 $728,880

TOTALS $6,685,210 $32,627,640 $921,650 $12,532,680 $43,756,240 $548,120 $10,184,770 $290,860 $3,150,340 $110,697,510

48 Revenue Summary for 2022 Pie Chart Breakdown

Other Revenue Non-Revenue 3% 0% Beginning Resources Misc. 6% 9% Fines & Forfeits 1% Taxes 29%

Charges for Licenses Services & Permits 40% 1%

Intergovernmental 11%

49 2021/2022 Budget Financial Summary Expenditure Summary for 2021 By BARS Expenditure Object

B.A.R.S. I.D. 508 510 520 530 540 550 560 570 590 Total Type of Expenditure Fund Bal. Salaries Benefits Supplies Other Intergovt. Capital Debt Service Trans. Out Expenditure

GENERAL FUND: General Fund $0 $20,387,800 $8,323,740 $1,177,820 $7,713,580 $2,494,560 $91,120 $342,270 $936,340 $41,467,230

SPECIAL REVENUE FUNDS: Arterial Street Fund $1,081,000 $0 $0 $0 $32,000 $0 $370,000 $115,000 $0 $1,598,000 Downtown Parking Fund $0 $40,910 $18,030 $850 $13,280 $0 $0 $0 $0 $73,070 Economic Development Fund $194,040 $0 $0 $1,000 $53,800 $0 $0 $301,410 $0 $550,250 HOME Fund $0 $0 $0 $0 $310,000 $0 $0 $0 $0 $310,000 CDBG Entitlement Fund $0 $0 $0 $0 $360,000 $0 $0 $0 $0 $360,000 Criminal Justice Assistance Fund $0 $549,620 $204,360 $25,010 $100,510 $0 $54,120 $0 $0 $933,620 Public Safety Fund $0 $0 $0 $0 $0 $0 $70,000 $0 $0 $70,000 Tourism Special Revenue Fund $0 $0 $0 $0 $64,500 $0 $0 $0 $0 $64,500 Transportation Benefit District $345,650 $0 $0 $0 $0 $0 $0 $209,730 $64,620 $620,000 Parks & Rec. Memorial Trust Fund $0 $0 $0 $0 $0 $0 $44,400 $0 $0 $44,400 Northwest Health Foundation $0 $0 $0 $0 $16,500 $0 $0 $0 $0 $16,500

DEBT SERVICE FUNDS: 2007 G.O. Bond Fund $0 $0 $0 $0 $2,750 $0 $0 $577,060 $0 $579,810 Special Assessment Bond Red. Fund $0 $0 $0 $0 $0 $0 $0 $42,500 $0 $42,500 Special Assessment Guaranty Fund $0 $0 $0 $0 $1,000 $0 $0 $0 $14,000 $15,000

CAPITAL PROJECTS FUNDS: Capital Projects Fund $0 $0 $0 $0 $0 $0 $572,350 $0 $126,630 $698,980 L.I.D. Construction Fund $0 $0 $0 $0 $0 $0 $350,000 $0 $0 $350,000 Building Replacement Fund $0 $0 $0 $0 $0 $0 $460,000 $0 $0 $460,000

PERMANENT FUNDS: Library Memorial Trust Fund $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $1,000

ENTERPRISE FUNDS: Water Operations Fund $0 $1,368,510 $772,600 $1,569,890 $2,229,210 $0 $175,000 $0 $25,000 $6,140,210 Water Construction Fund $0 $0 $0 $0 $0 $0 $2,080,000 $1,785,270 $0 $3,865,270 Sewer Operations Fund $0 $1,169,900 $614,960 $144,700 $9,267,220 $50,000 $50,000 $832,130 $915,000 $13,043,910 Sewer Construction Fund $0 $0 $0 $0 $0 $0 $920,000 $0 $0 $920,000 Filter Plant Operations Fund $78,440 $309,790 $149,780 $182,900 $584,330 $0 $0 $0 $0 $1,305,240 Filter Plant Construction Fund $0 $0 $0 $0 $0 $0 $650,000 $0 $0 $650,000 Sanitary/Recycling Fund $0 $288,430 $136,360 $2,700 $5,320,600 $0 $0 $0 $0 $5,748,090 Storm Water Fund $0 $1,883,130 $982,490 $261,070 $2,323,430 $0 $243,000 $249,900 $0 $5,943,020 Transit Operations Fund $0 $1,881,480 $1,023,360 $41,050 $3,098,130 $0 $3,017,910 $0 $0 $9,061,930 Mint Valley Golf Fund $0 $442,390 $163,420 $179,210 $340,640 $0 $0 $7,130 $0 $1,132,790 Mint Valley Racquet Fund $0 $0 $0 $0 $6,320 $0 $0 $0 $0 $6,320

INTERNAL SERVICE FUNDS: Insurance Reserve Fund $18,440 $217,890 $361,850 $6,900 $1,318,690 $0 $0 $0 $0 $1,923,770 Office Equipment Reserve Fund $0 $0 $0 $720,950 $382,300 $0 $1,110,800 $0 $0 $2,214,050 Equipment Rental Operations Fund $11,730 $433,620 $237,390 $1,074,460 $425,970 $0 $0 $0 $0 $2,183,170 Equipment Rental Reserve Fund $1,644,890 $0 $0 $0 $0 $0 $1,111,730 $0 $0 $2,756,620 Facility Maintenance Fund $11,490 $197,340 $121,140 $109,550 $349,610 $0 $0 $0 $0 $789,130 Unemployment Compensation Fund $500 $0 $71,130 $0 $0 $0 $0 $0 $0 $71,630 Employee Benefits Reserve Fund $0 $0 $475,000 $0 $100,000 $0 $0 $0 $0 $575,000

FIDUCIARY FUNDS: Firemen's Pension Fund $0 $18,020 $604,390 $70 $84,500 $0 $0 $0 $0 $706,980

TOTALS $3,386,180 $29,188,830 $14,260,000 $5,498,130 $34,498,870 $2,544,560 $11,370,430 $4,462,400 $2,082,590 $107,291,990

50 Expenditure Summary for 2021 Pie Chart Breakdown

Transfers Out Debt Service 2% Fund Balance 4% 3%

Capital 11% Salaries 27% Intergovernmental 3%

Other 32% Benefits 13%

Supplies 5%

51 2021/2022 Budget Financial Summary Expenditure Summary for 2022 By BARS Expenditure Object

B.A.R.S. I.D. 508 510 520 530 540 550 560 570 590 Total Type of Expenditure Fund Bal. Salaries Benefits Supplies Other Intergovt. Capital Debt Service Trans. Out Expenditure

GENERAL FUND: General Fund $0 $20,776,860 $8,387,170 $1,178,020 $7,676,970 $2,464,200 $91,120 $335,590 $1,196,570 $42,106,500

SPECIAL REVENUE FUNDS: Arterial Street Fund $903,750 $0 $0 $0 $32,000 $0 $3,570,000 $114,250 $0 $4,620,000 Downtown Parking Fund $0 $40,910 $18,030 $850 $13,280 $0 $0 $0 $0 $73,070 Economic Development Fund $191,990 $0 $0 $1,000 $55,600 $0 $0 $301,660 $0 $550,250 HOME Fund $0 $0 $0 $0 $315,000 $0 $0 $0 $0 $315,000 CDBG Entitlement Fund $0 $0 $0 $0 $360,000 $0 $0 $0 $0 $360,000 Criminal Justice Assistance Fund $0 $523,160 $194,130 $24,960 $84,590 $0 $54,120 $0 $0 $880,960 Public Safety Fund $0 $0 $0 $0 $0 $0 $630,000 $0 $0 $630,000 Tourism Special Revenue Fund $0 $0 $0 $0 $66,500 $0 $0 $0 $0 $66,500 Transportation Benefit District $345,350 $0 $0 $0 $0 $0 $0 $209,730 $64,920 $620,000 Parks & Rec. Memorial Trust Fund $0 $0 $0 $0 $0 $0 $44,400 $0 $0 $44,400 Northwest Health Foundation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

DEBT SERVICE FUNDS: 2007 G.O. Bond Fund $0 $0 $0 $0 $2,750 $0 $0 $584,260 $0 $587,010 Special Assessment Bond Red. Fund $0 $0 $0 $0 $0 $0 $0 $42,500 $0 $42,500 Special Assessment Guaranty Fund $0 $0 $0 $0 $1,000 $0 $0 $0 $14,000 $15,000

CAPITAL PROJECTS FUNDS: Capital Projects Fund $0 $0 $0 $0 $0 $0 $890,000 $0 $48,850 $938,850 L.I.D. Construction Fund $0 $0 $0 $0 $0 $0 $350,000 $0 $0 $350,000 Building Replacement Fund $141,000 $0 $0 $0 $0 $0 $60,000 $0 $0 $201,000

PERMANENT FUNDS: Library Memorial Trust Fund $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $1,000

ENTERPRISE FUNDS: Water Operations Fund $0 $1,392,320 $778,020 $1,589,890 $2,244,820 $0 $150,000 $0 $0 $6,155,050 Water Construction Fund $0 $0 $0 $0 $0 $0 $2,405,000 $1,773,700 $0 $4,178,700 Sewer Operations Fund $129,900 $1,182,750 $617,910 $144,700 $9,301,730 $50,000 $0 $831,660 $1,305,000 $13,563,650 Sewer Construction Fund $0 $0 $0 $0 $0 $0 $1,385,000 $0 $0 $1,385,000 Filter Plant Operations Fund $57,060 $310,090 $149,870 $182,900 $585,280 $0 $0 $0 $0 $1,285,200 Filter Plant Construction Fund $0 $0 $0 $0 $0 $0 $150,000 $0 $0 $150,000 Sanitary/Recycling Fund $0 $288,430 $136,410 $2,700 $5,479,230 $0 $0 $0 $0 $5,906,770 Storm Water Fund $0 $1,921,130 $991,110 $261,070 $2,319,160 $0 $106,000 $249,220 $0 $5,847,690 Transit Operations Fund $0 $1,919,470 $1,031,680 $41,050 $3,221,380 $0 $1,505,600 $0 $0 $7,719,180 Mint Valley Golf Fund $0 $446,400 $164,390 $179,210 $342,130 $0 $0 $6,090 $0 $1,138,220 Mint Valley Racquet Fund $0 $0 $0 $0 $6,550 $0 $0 $0 $0 $6,550

INTERNAL SERVICE FUNDS: Insurance Reserve Fund $12,030 $223,220 $363,060 $6,900 $1,422,850 $0 $0 $0 $0 $2,028,060 Office Equipment Reserve Fund $251,170 $0 $0 $619,100 $337,710 $0 $876,110 $0 $0 $2,084,090 Equipment Rental Operations Fund $4,600 $440,070 $238,860 $1,076,090 $429,510 $0 $0 $0 $0 $2,189,130 Equipment Rental Reserve Fund $758,980 $0 $0 $0 $50,000 $0 $1,669,640 $0 $0 $2,478,620 Facility Maintenance Fund $11,650 $205,880 $123,050 $110,950 $351,260 $0 $0 $0 $0 $802,790 Unemployment Compensation Fund $500 $0 $72,390 $0 $0 $0 $0 $0 $0 $72,890 Employee Benefits Reserve Fund $0 $0 $475,000 $0 $100,000 $0 $0 $0 $0 $575,000

FIDUCIARY FUNDS: Firemen's Pension Fund $0 $18,920 $622,390 $70 $87,500 $0 $0 $0 $0 $728,880

TOTALS $2,807,980 $29,689,610 $14,363,470 $5,419,460 $34,886,800 $2,514,200 $13,936,990 $4,448,660 $2,630,340 $110,697,510

52 Expenditure Summary for 2022 Pie Chart Breakdown

Transfers Out Debt Service 2% Fund Balance 4% 3%

Capital 13% Salaries 27% Intergovernmental 2%

Benefits 13% Other 31%

Supplies 5%

53 2021/2022 Budget Financial Summary Expenditure Comparisons by Fund

2019 2020 2021 2022 Fund Actual Budget Budget Budget GENERAL FUND: General Fund $39,568,620 $40,769,420 $41,467,230 $42,106,500 SPECIAL REVENUE FUNDS: Arterial Street Fund $897,670 $3,549,800 $1,598,000 $4,620,000 Downtown Parking Fund $74,960 $80,930 $73,070 $73,070 Economic Development Fund $581,010 $737,970 $550,250 $550,250 HOME Fund $165,160 $303,250 $310,000 $315,000 CDBG Entitlement Fund $359,740 $352,500 $360,000 $360,000 Criminal Justice Assistance Fund $1,165,690 $686,530 $933,620 $880,960 Public Safety Fund $417,160 $145,000 $70,000 $630,000 Tourism Special Revenue Fund $35,450 $40,000 $64,500 $66,500 Transportation Benefit District $1,735,520 $1,447,720 $620,000 $620,000 Parks & Rec. Memorial Trust Fund $0 $86,900 $44,400 $44,400 Northwest Health Foundation $0 $0 $16,500 $0 DEBT SERVICE FUNDS: 2007 L.T.G.O. Bond Fund $572,070 $582,310 $579,810 $587,010 Spec. Assess. Bond Red. Fund $0 $42,500 $42,500 $42,500 Spec. Assess. Guaranty Fund $0 $15,000 $15,000 $15,000 CAPITAL PROJECTS FUNDS: Capital Projects Fund $849,300 $419,800 $698,980 $938,850 L.I.D. Construction Fund $260,730 $775,000 $350,000 $350,000 Building Replacement Fund $680,100 $417,500 $460,000 $201,000 PERMANENT FUNDS: Library Trust Fund $0 $1,000 $1,000 $1,000 ENTERPRISE FUNDS: Water Operations Fund $8,312,050 $6,393,660 $6,140,210 $6,155,050 Water Construction Fund $2,186,430 $4,021,160 $3,865,270 $4,178,700 Sewer Operations Fund $19,793,710 $12,486,580 $13,043,910 $13,563,650 Sewer Construction Fund $3,597,740 $4,915,000 $920,000 $1,385,000 Filter Plant Operations Fund $1,089,710 $1,239,580 $1,305,240 $1,285,200 Filter Plant Construction Fund $89,140 $100,000 $650,000 $150,000 Sanitary/Recycling Fund $5,457,530 $5,578,930 $5,748,090 $5,906,770 Storm Water Fund $4,814,790 $5,417,570 $5,943,020 $5,847,690 Transit Operations Fund $8,593,540 $7,083,870 $9,061,930 $7,719,180 Mint Valley Golf Fund $1,232,010 $1,249,420 $1,132,790 $1,138,220 Mint Valley Racquet Fund $7,070 $7,060 $6,320 $6,550 INTERNAL SERVICE FUNDS: Insurance Reserve Fund $1,736,220 $2,061,860 $1,923,770 $2,028,060 Office Equipment Reserve Fund $800,950 $1,258,220 $2,214,050 $2,084,090 Equipment Rental Operations Fund $2,045,160 $2,275,650 $2,183,170 $2,189,130 Equipment Rental Reserve Fund $1,922,520 $1,844,890 $2,756,620 $2,478,620 Facility Maintenance Fund $759,840 $704,090 $789,130 $802,790 Unemployment Compensation Fund $52,770 $56,250 $71,630 $72,890 Employee Benefits Reserve Fund $396,930 $575,000 $575,000 $575,000 FIDUCIARY FUNDS: Firemen's Pension Fund $867,850 $699,920 $706,980 $728,880

TOTALS $111,119,140 $108,421,840 $107,291,990 $110,697,510 54 Expenditure Comparisons by Department

2018 2019 2020 2021 2022 Department Actual Actual Budget Budget Budget Legislative $201,730 $184,140 $200,420 $210,490 $215,580 Judicial $981,960 $1,051,820 $994,250 $954,250 $954,250 Executive $128,330 $116,370 $176,550 $299,310 $307,570 Finance $1,356,510 $1,449,040 $1,569,410 $1,534,070 $1,475,940 Human Resources $422,580 $330,520 $382,580 $371,600 $386,780 Legal $699,420 $731,990 $712,570 $706,650 $712,800 Information Technology $1,166,380 $1,004,690 $1,183,350 $1,118,240 $1,099,030 Police $12,240,180 $12,260,610 $12,983,180 $13,592,540 $13,681,350 Fire $9,841,150 $9,578,680 $9,563,930 $10,016,450 $10,466,920 Traffic $1,254,510 $1,138,270 $1,271,880 $1,230,490 $1,249,660 Street Maintenance $1,383,630 $1,667,550 $1,754,550 $1,731,690 $1,763,890 Engineering $1,048,910 $1,024,040 $1,186,680 $1,151,820 $1,169,980 Community Development $842,940 $775,020 $925,780 $920,640 $921,400 Library $2,202,220 $2,029,320 $2,003,240 $2,012,930 $2,044,090 Recreation $1,386,600 $1,425,090 $1,394,190 $1,428,690 $1,437,590 Park Maintenance $1,672,860 $1,826,270 $1,926,190 $1,838,920 $1,861,200 Non-Departmental $2,920,880 $2,975,200 $2,540,670 $2,348,450 $2,358,470 Parking Enforcement $69,000 $74,960 $80,930 $73,070 $73,070 Criminal Justice $443,610 $1,165,690 $686,530 $933,620 $880,960 Water Operations $6,159,360 $8,312,050 $6,393,660 $6,140,210 $6,155,050 Sew er Operations $11,008,430 $19,793,710 $12,486,580 $13,043,910 $13,563,650 Filter Plant Operations $1,056,080 $1,089,710 $1,239,580 $1,305,240 $1,285,200 Sanitation/Recycling $5,362,330 $5,457,530 $5,578,930 $5,748,090 $5,906,770 Storm Water $4,839,610 $4,814,790 $5,417,570 $5,943,020 $5,847,690 Transit Operations $5,096,790 $8,593,540 $7,083,870 $9,061,930 $7,719,180 Golf $563,770 $1,232,010 $1,249,420 $1,132,790 $1,138,220 Equipment Rental Operations $2,009,750 $2,045,160 $2,275,650 $2,183,170 $2,189,130 Insurance Reserve $1,715,270 $1,736,220 $2,061,860 $1,923,770 $2,028,060 Facility Maintenance $665,320 $759,840 $704,090 $789,130 $802,790

$25 Millions $20

$15

$10

$5

$0

2018 Actual 2019 Actual 2020 Budget 2021 Budget 2022 Budget 55 2021/2022 Budget Financial Summary Long-Term Debt The City of Longview’s authority to incur long-term debt of any kind is controlled and limited by the RCW. According to law, our debt must be incurred in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. We use long-term debt to finance capital improvements.

As prescribed by the RCW, our tax general obligation debt, subject to a 60 percent vote of qualified voters in the city, is limited to 2.5 percent of our assessed valuation for general purposes, 2.5 percent for utilities and 2.5 percent for open space and park facilities. Within our 2.5 percent of assessed valuation for general purposes, we may, without a vote of the people, incur tax general obligation debt in an amount that cannot exceed 1.5 percent of our assessed valuation. Within the 2.5 percent of assessed valuation for general purposes, we may also, without a vote of the people, enter into leases, if the total principal of the lease payments along with any other non-voted tax general obligation debt does not exceed 1.5 percent of our assessed valuation. The combination of voted tax and non-voted tax general obligation debt for general purposes, including leases, cannot exceed 2.5 percent of our assessed valuation. The same combination of tax general obligation debt for all purposes cannot exceed 7.5 percent of our assessed valuation.

General Obligation Bonds are a direct obligation of the City for which its full faith and credit are pledged. The debt service on general obligation bonds issued to fund improvements that directly benefit a specific program or fund are paid from that fund. The debt service on general obligation bond proceeds used to fund general improvements are paid from our Debt Service Funds. Debt Service for voter approved issues is funded by special property tax levies. Debt Service for City Council authorized or councilmanic issues are funded from regular property taxes.

Revenues bonds are created by ordinance, adopted by the City Council, and financed from Enterprise Fund revenues pledged as security for the repayment of the revenue bonds.

Special Assessment bonds are created by ordinance, adopted by the City Council, and financed by assessments on property owners. A separate guaranty fund is available to cover outstanding delinquencies at the end of the assessment period. The City’s obligation does not extend beyond the Guaranty Fund assets.

Debt Limitations The City’s 2020 debt limit based on its current Property Valuation (2020 assessment for 2021 collection) is: ...... $3,914,672,517

NON-VOTED DEBT LIMITS Limit without vote (1.5% of assessed value) $58,720,088 General obligation bonds outstanding $10,645,000 Other general obligation debt 7,826,777 Total general obligation debt $18,471,777 Total GO debt reduced by: Applicable governmental fund assets available 5,000 Applicable proprietary fund assets available 0 Net outstanding non-voted debt 19,045,779 REMAINING NON-VOTED DEBT CAPACITY $39,674,309

56 VOTED DEBT LIMITS Limit with vote (2.5% of assessed value) $97,866,813 Less: Net outstanding non-voted debt 19,045,779 Voted general obligation bonds outstanding $0 Reduced by applicable funds available 0 Net outstanding voted debt 0 REMAINING VOTED DEBT CAPACITY $78,821,034

INDEBTEDNESS FOR UTILITY PURPOSES Limit with vote (2.5% of assessed value) $97,866,813 Less: Total net general purpose debt 19,045,779 REMAINING VOTED UTILITY DEBT CAPACITY $78,821,034

INDEBTEDNESS FOR PARKS AND OPEN SPACES

Limit with vote (2.5% of assessed value) $97,866,813 Less: Total net general and utility purpose debt 19,045,779 REMAINING VOTED PARKS AND OPEN SPACES DEBT CAPACITY $78,821,034

Schedule of Long-Term Debt for the period ending December 31, 2020 This schedule of long-term debt provides a listing of the City of Longview’s outstanding general obligation debt and the annual requirements, including interest to amortize this debt.

GENERAL OBLIGATION DEBT Year ending Bonds Notes from Direct Borrowings December, 31 Principal Interest Principal Interest

2021 $495,000 $388,666 $564,167 $156,105 2022 $510,000 $374,168 $577,151 $145,975 2023 $505,000 $358,633 $584,321 $135,774 2024 $515,000 $342,921 $596,027 $125,178 2025 $535,000 $325,783 $612,559 $114,011 2026-30 $2,400,000 $1,336,797 $2,258,606 $428,377 2031-35 $1,900,000 $944,431 $2,149,135 $212,563 2036-40 $1,665,000 $554,831 $484,811 $34,523 2041-45 $1,575,000 $262,031 $0 $0 2046-47 $545,000 $24,638 $0 $0

$10,645,000 $4,912,899 $7,826,777 $1,352,506 57 2021/2022 Budget Financial Summary General Obligation Bonds & Other General Obligation Debt General obligation bonds outstanding as of December 31, 2020, are as follows:

$3,560,000 - 2013 Limited Tax General Obligation Bonds 2013 City Facility Energy Conservation serial bonds due in installments of $215,000 to $280,000 through December 1, 2028 with interest at 0.7% to 4.08%...... $1,965,000

$9,410,000 - 2017 Limited Tax General Obligation and Refunding Bonds 2013 City Facility Energy Conservation serial bonds due in installments of $185,000 to $435,000 through December 1, 2047 with interest at 3.0% to 4.0%...... $8,680,000

Total General Obligation Bonds Outstanding ...... $16,645,000 Notes from Direct Borrowings Outstanding Notes from Direct Borrowings as of December 31, 2020, are as follows:

$2,714,500 - 2019 Limited Tax General Obligation Bonds Payments due in installments of $100,000 to $175,000 through December 1, 2039 with interest at 1.93% to 2.84%...... $2,575,077

$5,251,700 - 2020 Limited Tax General Obligation Bonds Payments due in installments of $286,000 to $452,000 through December 1, 2035 with interest at 1.45% to 2.16%...... $5,251,700

Total Notes from Direct Borrowings ...... $7,826,777 Revenue Debt This schedule provides a listing of the City of Longview’s revenue debt and the annual requirements, including interest to amortize this debt.

REVENUE DEBT Year ending Bonds Notes from Direct Borrowings December, 31 Principal Interest Principal Interest

2021 $425,000 $310,000 $2,301,395 $327,553 2022 $440,000 $293,000 $2,316,609 $300,299 2023 $460,000 $275,400 $2,332,255 $272,612 2024 $475,000 $257,000 $2,348,344 $244,483 2025 $495,000 $238,000 $2,364,890 $215,897 2026-30 $2,795,000 $876,400 $10,389,647 $630,358 2031-34 $2,660,000 $271,400 $2,498,113 $55,459

$7,750,000 $2,521,200 $24,551,255 $2,046,661

58 Revenue Bonds & Other Enterprise Debt The City of Longview is authorized under the laws of the State of Washington to issue revenue bonds. Revenue bonds are used for the purpose of financing various enterprise activities and are secured by the revenues collected from ratepayers. As of December 31, 2020, the City of Longview has outstanding Revenue bonds in the amount of $7,750,000. These bonds are payable through 2034.

$10,000,000 - 2014 Revenue Bonds Revenue bonds are due in annual installments of $315,000 to $730,000 through December 2034 with interest at 3.00% to 5.00%...... $7,750,000

Total Revenue Bonds Outstanding……………………………………………………………. $7,750,000 Notes from Direct Placements Payment for outstanding other enterprise debt which consists of low interest Public Works Trust Fund Loans is provided by the Water/Sewer Fund. As of December 31, 2020, the amount outstanding for other enterprise debt is $24,551,255 as follows:

$750,000 - 2005 Public Works Trust Fund Loan. Proceeds were utilized to fund replacement of specific components at the Cowlitz County Regional Sewage Treatment Facility. Annual installments beginning July 1, 2005, through July 1, 2025, interest at ½% per annum...... $204,286

$1,000,000 - 2009 Public Works Trust Fund Loan. Proceeds to fund replacement of specific components at the Cowlitz County Regional Sewage Treatment Facility. Annual interest payments of ½ % per annum on outstanding principal balance with final payment due July 1, 2028...... $426,900

$1,000,000 - 2010 Public Works Trust Fund Loan. Proceeds were utilized to fund the new Regional Water Treatment Plant. Annual interest of ½ % through 2028...... $426,900

$3,213,000 - 2010 Public Works Trust Fund Loan. Proceeds were utilized to fund the new Regional Water Treatment Plant. Annual interest of ½ % through 2028...... $1,478,925

$8,080,000 - 2011 Public Works Trust Fund Loan. Proceeds were utilized to fund the new Regional Water Treatment Plant. Annual interest of ½ % through 2028...... $3,649,678

$8,397,696 - 2011 Department of Ecology Loan to help in the City’s sewer diversion project to the regional sewage treatment plant. Annual interest of 2.8% through 2031...... $7,175,092

$12,000,000 - 2012 Public Works Trust Fund Loan for the Mint Farm Regional Water Supply Project. Annual interest of 1% through 2034...... $5,400,000

$10,000,000 - 2012 Public Works Trust Fund Loan for the Mint Farm Regional Water Supply Project. Annual interest of 0.5% through 2032...... $5,789,474

Total Notes from Direct Placements Outstanding...... $24,551,255

59 2021/2022 Budget Financial Summary Special Assessment Bonds Debt service requirements for special assessment bonds will be met by the collection of assessments receivable that have been levied against property owners. The assessments are liens against the property and subject to foreclosure. Payment for outstanding special assessment bond principal and interest is provided by Debt Service Funds. Total outstanding special assessment bonds as of December 31, 2020, total $0.

Total Local Improvement District Bonds Outstanding ...... $0

60 Fund Budget Structure Details of the fund structures for the budget start on page 42. In the sections that follow the financial summary, individual funds are accounted for beginning with the General Fund. All fund sections are indicated by orange tabs, and each City department is represented by a yellow tab.

Revenues Total All Funds

Total Revenues Actual Budget Budget Percent Budget Percent 2021-2022 By Source 2019 2020 2021 Variance 2022 Variance Budget Taxes $31,214,330 $31,671,120 $31,989,370 1.0% $32,627,640 2.0% $64,617,010 Licenses & Permits $849,170 $1,021,310 $905,930 -11.3% $921,650 1.7% $1,827,580 Intergovernmental $9,390,440 $11,433,670 $11,705,480 2.4% $12,532,680 7.1% $24,238,160 Charges for Services $40,889,780 $41,157,260 $42,194,650 2.5% $43,756,240 3.7% $85,950,890 Fines & Forfeits $651,630 $466,700 $540,200 15.7% $548,120 1.5% $1,088,320 Miscellaneous $10,455,190 $9,784,720 $10,112,980 3.4% $10,184,770 0.7% $20,297,750 Non-Revenues $0 $334,730 $285,860 -14.6% $290,860 1.7% $576,720 Other Financing Sources $19,382,030 $5,180,600 $3,375,090 -34.9% $3,150,340 -6.7% $6,525,430 Beg Resources Req to Balance $0 $7,371,730 $6,182,430 -16.1% $6,685,210 8.1% $12,867,640 TOTAL REVENUES $112,832,570 $108,421,840 $107,291,990 -1.0% $110,697,510 3.2% $217,989,500

Expenditures Total All Funds Total Expenditures Actual Budget Budget Percent Budget Percent 2021-2022 By Object 2019 2020 2021 Variance 2022 Variance Budget Cont to End Fund Balance $0 $1,278,860 $3,386,180 164.8% $2,807,980 -17.1% $6,194,160 Salaries & Wages $26,614,680 $29,256,870 $29,188,830 -0.2% $29,689,610 1.7% $58,878,440 Personnel Benefits $12,048,040 $13,353,240 $14,260,000 6.8% $14,363,470 0.7% $28,623,470 Supplies $5,355,070 $5,528,950 $5,498,130 -0.6% $5,419,460 -1.4% $10,917,590 Other Services & Charges $32,222,060 $33,148,810 $34,498,870 4.1% $34,886,800 1.1% $69,385,670 Intergovernmental $2,300,640 $2,514,430 $2,544,560 1.2% $2,514,200 -1.2% $5,058,760 Capital Outlay $14,221,780 $16,428,650 $11,370,430 -30.8% $13,936,990 22.6% $25,307,420 Debt Service $4,810,390 $4,638,770 $4,462,400 -3.8% $4,448,660 -0.3% $8,911,060 Interfund Transfers $13,546,480 $2,273,260 $2,082,590 -8.4% $2,630,340 26.3% $4,712,930 TOTAL EXPENDITURES $111,119,140 $108,421,840 $107,291,990 -1.0% $110,697,510 3.2% $217,989,500

61 2021/2022 Budget Financial Summary

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