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HomeMy WebLinkAbout2014-1118 Council Agenda PACKET CITY OF ASHLAND Important: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit written comments to the Council on any item on the Agenda, unless it is the subject of a public hearing and the 'record is closed Time permitting, the Presiding Officer may allow oral testimony. If you wish to speak, please fill out the Speaker Request form located near the entrance to the Council Chambers. The chair will recognize you and inform you as to the amount of time allotted to you, if any. The time granted will be dependent to - some extent on the nature of the item under discussion, the number of people who wish to speak, and the length of the agenda AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL November 18, 2014 Council Chambers 1175 E. Main Street Note: Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.E.] 7:00 p.m. Regular Meeting 1. CALL TO ORDER 11. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENTS V. APPROVAL OF MINUTES 1. Study Session of November 3, 2014 2. Business Meeting of November 4, 2014 VI. SPECIAL PRESENTATIONS & AWARDS 1. Annual update from the Housing and Human Services Commission VII. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. The Mayor will set time limits to enable all people wishing to speak to complete their testimony.) [15 minutes maximum] VIII. CONSENT AGENDA 1. Approval of commission, committee, and board minutes 2. Appointment of Luke Brandy to Forest Lands Commission 3. Appointment of Andrew Ladygo to the Historic Commission IX. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. Public hearings shall conclude at 9:00 p.m. and be continued to a future date to be set by the Council, COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014, CHARTER CABLE WILL BROADCAST LIVE ON CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US unless the Council, by a two-thirds vote of those present, extends the hearing(s) until up to 10:30 p.m. at which time the Council shall set a date for continuance and shall proceed with the balance of the agenda.) None X. UNFINISHED BUSINESS None XI. NEW AND MISCELLANEOUS BUSINESS 1. Social Service Grant Program Evaluation and Strategic Plan Review 2. Acceptance of FY 2013-2015 Comprehensive Annual Financial Report 3. Workforce Development Proposal - Ashland Community Resource Center XII. ORDINANCES, RESOLUTIONS AND CONTRACTS XIII. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS XIV. ADJOURNMENT OF BUSINESS MEETING Immediately following the Business Meeting the City Council will hold an Executive Session for performance evaluation of public officers and employees pursuant to ORS 192.660(2)(i) in the Jury Room, located at 1175 E Main Street. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014, CHARTER CABLE WILL BROADCAST LIVE ON CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US Regular City Council Meeting November 4, 2014 Page 1 of 6 MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL November 4, 2014 Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Stromberg called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers. ROLL CALL Councilor Voisin, Morris, Lemhouse, Slattery, Rosenthal, and Marsh were present. MAYOR'S ANNOUNCEMENTS Mayor Stromberg announced vacancies on the Forest Lands, Historic, Public Arts, Transportation, and Tree Commissions. APPROVAL OF MINUTES The minutes of the Study Session of October 20, 2014, Executive Session of October 21, 2014 and Business Meeting of October 21, 2014 were approved as presented. SPECIAL PRESENTATIONS & AWARDS Public Works Director Mike Faught and GIS Specialist Lea Richards spoke regarding the Ashland Map Project. The map was a collaborative effort involving the Chamber of Commerce, local photographers, the Ashland Forest Resiliency Project, and City staff. The Northwest GIS Conference hosted a map contest and the Ashland map won awards for best public services and cartographic design out of twenty maps entered. Ms. Richards went on to highlight efforts and services provided by the City's GIS program. Wendy Siporen from THRIVE and Professor Vincent Smith from Southern Oregon University (SOU) provided a presentation on the Rogue Valley Food System Network governed by the Food System Council. Professor Smith explained how the Food System Council operated, who was involved and the mission. They highlighted projects, introduced their new website rvfoodsystem.org, described THRIVE's role with the Rogue Valley Food System Network and invited Council to join the Network as a partner. PUBLIC FORUM None CONSENT AGENDA 1. Approval of commission, committee, and board minutes 2. Change order for asbestos removal at Ashland Creek Park 3. Approval of an MOU between the City of Brighton Police Department and the Ashland Police Department to join the You have Options national program 4. Downtown Parking Management and Multi-modal Circulation Advisory Committee Transportation Commission representative 5. Ratification of three-year labor contract with Electrical Union, IBEW Local No. 659 6. Appointment of Richard Newman to the Public Arts Commission 7. Appointment of Bruce Moats, Stephen Gagne, and Ron Parker to the Wildfire Mitigation Commission 8. Approval of a Special Contractor List for sludge hauling to the City of Medford Water Reclamation facility Council pulled Consent Agenda items 3, 4, 5, and 8 for further discussion. Regular City Council Meeting November 4, 2014 Page 2 of 6 Police Chief Terry Holderness clarified the memo of understanding (MOU) with the City of Brighton Police Department was not financially binding but affected the City through loss of staff time for a detective position. Staff would address this in the next budget cycle and were looking for ways to recover costs through grant and training opportunities. The Ashland Police Department received a nomination for the Webber Seavey Award for excellence in Law Enforcement and invitations to speak at various conferences nationwide due to the You Have Options Program. The department was anticipating up to sixteen training sessions in Ashland 2015. Mayor Stromberg asked Council to approve Joe Graff to the Downtown Parking Management and Multi- modal Circulation Advisory Committee and Councilor Marsh and Councilor Rosenthal as the Council Liaisons. Human Resource Director Tina Gray addressed the labor contract with the Electric Union and clarified the contract included a 2% cost of living wage increase. The Electric Union had one wage with cost of living increases and was in line with industry standards. Councilor Voisin expressed concern the Electric Department was not receiving a wage increase for three years. City Administrator Dave Kanner explained how the employees were compensated through other forms and both parties had agreed to the terms in the contract. Councilor Voisin would not support approving the labor agreement. Councilor Slattery thought it was inappropriate for Council to try to manage collective bargaining agreements. The Union itself participated in a series of meetings and came to an agreement with the City. Public Works Superintendent Mike Morrison explained the special contractor for sludge hauling to the City of Medford Water Reclamation Facility would provide back-up service in the event one of two pieces of equipment failed while the other was going through maintenance. Councilor Marsh/Slattery m/s to approve Consent Agenda item #5. Roll Call Vote: Councilor Morris, Lemhouse, Slattery, Rosenthal, and Marsh, YES; Councilor Voisin, NO. Motion approved 5-1. Councilor Morris/Lemhouse m/s to approve remaining items on Consent Agenda. Voice Vote: all AYES. Motion passed. PUBLIC HEARINGS None UNFINISHED BUSINESS 1. Continued discussion of an ordinance replacing Title 18 Land Use of the Ashland Municipal Code with a reformatted and amended Land Use Ordinance Development Director Bill Molnar and Planning Manager Maria Harris provided an overview of the remaining key amendments to the ordinance: • Residential buildings in mixed-use development in commercial and employment zones Council suggested adding up the grand floor and applying a standard there instead of moving to an area of lot coverage. The Mayor added if someone was in a target use that was commercial at the least the total square footage should be commercial. Staff would refine the suggestion and bring it back to Council for approval possibly after first reading. • Plaza/public space requirement for large-scale commercial development Council thought the plaza requirement was problematic for downtown development and needed further review. The Mayor suggested view corridors if they removed the plaza requirement. Other Council comments had issues with the fourth floor and noted the requirement applied to 10,000 square feet or greater and 100-foot long buildings and that made setbacks important. Regular City Council Meeting November 4, 2014 Page 3 of 6 Staff explained the fourth floor suggestion came from a focus group of design and development professionals as an option to maximize concentration of employment and jobs on transit lines to use commercial and employment land more efficiently. Council could approve fourth floors as a conditional use permit (CUP), or they could separate them and not have the requirement. Council was interested in seeing something different for the downtown that possibly included the four- story standard and plaza standards. • Definitions of hotel and motel Council and the Mayor discussed whether the change in definition would allow short-term rentals in multiuse family areas and wanted more information. Council agreed to the updated definition of hotel and motel. • Effective date of Type II decisions Council supported the amendment. • Conditional use permit approval criteria Council had concern the proposed language for #7 inadvertently created a market of conditional use permits in certain situations. It was subjective, not measurable, and could be problematic. Council consensus did not support the proposed language in #7 regarding the cumulative effect of conditional uses. Councilor Marsh/Morris m/s to direct staff to bring back a revised draft with amendments for a continued Public Hearing and First Reading. DISCUSSION: Councilor Morris stated that the amendments incorporated much needed changes. He also noted issues navigating the new format. Mayor Stromberg and council expressed thanks to Mr. Molnar and Ms. Harris for their work on the changes. Roll Call Vote: Councilor Rosenthal, Lemhouse, Voisin, Marsh, Morris, and Slattery, YES. Motion passed. NEW AND MISCELLANEOUS BUSINESS 1. Council adoption of strategic planning goals and objectives City Administrator Dave Kanner explained Council was working on strategic planning, goals, and objectives to determine long-range goals for the City over the next 5-6 years. Council identified seven broad goal categories containing 23 goals and 54 objectives or sub goals and the following 5 priority goals: • Protect the integrity and safety of the watershed • Market and further develop the Ashland Fiber Network • Seek opportunities to enable all citizens to meet basic needs • Evaluate real property and facility assets to strategically support city missions and goals • Prepare for the impact of climate change on the community The Parks and Recreation Commission would go through their own strategic planning process followed with a joint meeting with the Council to see how both sets of goals interconnected. The City's leadership team would also establish goals to determine administrative goals for the core functions the City already provided and would bring it back to Council as well. Councilor Slattery/Morris m/s to adopt the City Council strategic planning goals and objectives as agreed upon by the Council at the October 4, 2014 strategic planning session. DISCUSSION: Councilor Slattery expressed appreciation for the work Council did on establishing the Regular City Council Meeting November 4, 2014 Page 4 of 6 goals and added the need to maintain it as a living document. Councilor Morris agreed with Councilor Slattery and supported the motion. Councilor Marsh thought it was a good document, and commented on the process. Councilor Voisin thought Council did well establishing goals and expressed concern there was no dialogue or input from those affected by the goals and objectives. Councilor Voisin motioned to direct staff to develop a strategic planning session with City staff, Commissions, and the public to engage Council in the strategic plan. Motion died for lack of a second. Continued discussion on main motion: Councilor Rosenthal would vote for the motion and suggested having a next steps conversation once the motion passed. Councilor Lemhouse thanked staff for their efforts. He thought Council had come far in the goal setting process and stressed the need to review the goals regularly. He suggested changing the wording regarding goals not funded in the current budget cycle. Roll Call Vote: Councilor Marsh, Morris, Slattery, Rosenthal, Lemhouse, and Voisin, YES. Motion approved. Councilor Rosenthal suggested adding a section to the Council and Commission Communication forms that identified the specific goal the item addressed. Councilor Lemhouse thought the community needed to understand the reasons why Council acted on items and the process. Councilor Voisin noted the process the Fire Department used for their strategic planning that not all of Council attended. Councilor Slattery took issue with Councilor Voisin commenting on who attended. Council Voisin called for a point of order. Councilor Slattery stated he out was of order. Mayor Stromberg explained Councilor Slattery might have been making a point of order regarding Councilor Voisin's statement on who attended the meeting. Councilor Voisin continued describing the Fire Department's process and Councilor Slattery explained during that he received reports from the Fire Chief. Mayor Stromberg granted both points of order. Councilor Voisin went on to suggest using a similar process the Fire Department used for their strategic planning she had found effective that involved community, staff, and commissioners from various commissions. Councilor Rosenthal thought it was important to have a deadline for the input Council was seeking. Another suggestion was producing a booklet of the goals. Councilor Lemhouse commented citizens had several months to provide feedback on the goals. Councilor Marsh thought it was appropriate for Council put together something that led the community. Councilor Rosenthal/Lemhouse m/s to add a category to Council and Commission Communication forms that includes a section on Council Goals. DISCUSSION: Councilor Rosenthal explained the form would include a section that indicated the goal the Council Communication pertained to knowing in some cases it would not be applicable. Councilor Lemhouse emphasized that a Council or Commission Communication form would not always apply to a goal. Councilor Slattery liked the suggestion. Roll Call Vote: Councilor Marsh, Morris, Slattery, Rosenthal, Lemhouse, and Voisin, YES. Motion approved. Mr. Kanner confirmed the feedback Council sought from the boards and commission was how they could support the goals not how they could amend, rewrite, or supplement the goals. Nor were boards and commissions supposed to be limited by the goals. 2. AFN Business Plan approval and funding options Director of Information Technology and Electric Mark Holden explained staff sought Council approval on the AFN business plan and to direct staff to develop implement funding for the business plan. During the October 6, 2014 Study Session Council expressed a preference that staff implement the internet Regular City Council Meeting November 4, 2014 Page 5 of 6 project and the fiber based services project. In the plan, they identified funding as a reduction in service fees. Currently there was a window of opportunity for AFN to gain momentum in the market place. Staff proposed the following funding options to fund the plan in the 2014-15 budget cycle and over a three-year period that would total approximately $600,000: 1. Using economic development funds 2. Using the Reserve Fund 3. Reduce AFN's annual debt service payments Council thought increasing the marketing budget from $26,000 to $40,000 was too low considering the competition. Mr. Holden explained AFN marketed directly to anyone who received a bill from the City plus branding, and would leverage with the ISP partners. City Administrator Dave Kanner added $40,000 could go a long way in a small community since the majority of marketing went through the utility bills. Council had options regarding moving funds from the Reserve Fund and the role of the Budget Committee. Mayor Stromberg thought Council should consider taking the $100,000 from Central Services instead of using economic development funds. It was noted that in 2024 the debt services payments would end and AFN would be close to recovering costs and positioning itself in the best possible way. AFN needed $600,000 dollars to compete and recover costs. Administrative Services Director Lee Tuneberg explained in the current budget process the City had already loaned some of the $1,000,000 in the Reserve Fund for the Health Benefit Fund that would not be paid back until the next budget period. Using funds from Central Services or the Equipment Fund would require further analysis. Council agreed AFN needed to move forward on increasing internet bandwidth now and look at potential organizational changes next year. Council had issues with the strategic plan and the City's ability as a government entity to compete in the private sector. Mr. Holden clarified fiber optic base services would happen in 2017. AFN could update the cable plan to 200 megabytes with the $100,000 investment but needed the bandwidth to deliver it. AFN would also provide competitive speed and bandwidth to Comcast by the time it had completed $250,000 of the $600,000. The fiber investment would get fiber to the premise. Council comments supported the strategic plan and using economic development funds for funding but the majority did not agree on using that option. Other comments preferred using the Reserve Fund, involving the Budget Committee, and noted the need for structural changes in AFN in order for it to compete in a private industry. Some wanted more discussion on the fiber optic project and suggested taking the next six months to create an AFN working group comprised of two Councilors, staff and three- four members of the community to look into possible structural changes. Councilor Marsh/Lemhouse m/s to create an AFN working group to identify and analyze possible alternative organizational structures for operation of the City fiber network. The alternative would be intended to retain City ownership of the infrastructure and retain public oversight but allow AFN the operational flexibility to move quickly and act strategically. DISCUSSION: Councilor Lemhouse supported the idea and motion. Councilor Rosenthal added if nothing changed at least Council was open to change by approving the motion. Councilor Slattery supported the motion and thought it could answer questions regarding the competitive market place and how the City does business. Councilor Voisin thought it was premature and that Council should follow the strategic plan set out by staff that knew the market, and knew AFN's capabilities. Taking time to form a committee would make AFN lose their competitive edge. Councilor Marsh clarified Council Regular City Council Meeting November 4, 2014 Page 6 of 6 would move ahead with the $100,000 investment. Councilor Morris supported the motion AFN needed a different management structure. He also supported going forward with funding. Roll Call Vote: Councilor Marsh, Lemhouse, Morris, Slattery and Rosenthal, YES; Councilor Voisin, NO. Motion passed 5-1. Councilor Slattery/Lemhouse m/s to take $100,000 from this funding cycle out of the Reserve Fund. DISCUSSION: Councilor Slattery thought it was short sighted to take the $100,000 out of economic development fund. Councilor Lemhouse supported using the Reserve Fund for the initial $100,000 and involving the Budget Committee. Councilor Rosenthal questioned whether the funds would be allocated during the annual budget process and not be immediately available. Mr. Kanner explained using the Reserve Fund required a resolution that stated the requirements of the Reserve Fund would be established as part of the annual budget process as approved by the Budget Committee. Council had the discretion to establish another process for taking money out of the Reserve Fund and recommended consulting with the Budget Committee. Mayor Stromberg added that was why he suggested taking money from the Central Services Ending Fund Balance (EFB), and convene the Budget Committee for their advice. Councilor Lemhouse responded reconvening the Budget Committee could be done easily. Roll Call Vote: Councilor Marsh, Lemhouse, Morris, Slattery, and Rosenthal, YES; Councilor Voisin, NO. Motion passed 5-1. Mayor Stromberg confirmed the Budget Committee would be convened prior to taking funds out of Reserve Fund. Council clarified the AFN working group would focus on changing the form of the company, not the strategic business plan. ORDINANCES, RESOLUTIONS AND CONTRACTS None OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS Councilor Slattery and Rosenthal noted election results and congratulated Councilor Marsh, Councilor Morris, Stefani Seffinger and the City Recorder. Councilor Lemhouse spoke regarding the Civic Virtue Project at the Ashland Middle School and its success. Councilor Voisin announced training for winter shelter volunteers November 5, 2014 at the Presbyterian Church. Options for Homeless Residents in Ashland (OHRA) was sponsoring a Sleep Out 2014 November 8, 2014 at the old Lincoln School field ending November 9, 2014. OHRA Homeless Options was taking donations for the event. ADJOURNMENT OF BUSINESS MEETING Meeting adjourned at 9:51 p.m. Barbara Christensen, City Recorder John Stromberg, Mayor Minutes for the City Council Study Session November 3, 2014 Page 1 of 4 MINUTES FOR THE STUDY SESSION ASHLAND CITY COUNCIL Monday, November 3, 2014 Siskiyou Room, 51 Winburn Way Mayor Stromberg called the meeting to order at 5:30 p.m. in the Siskiyou Room. Councilor Morris, Rosenthal, Voisin, Slattery, Marsh, and Lemhouse were present. 1. Public Input (15 minutes maximum) Nicholas Dienel/180 Clear Creek Drive/Addressed agenda item 44 and explained panhandling issues extended to Pioneer Street and the Umqua Bank area as well as the Ashland Food Coop. His other concern was people sleeping on the railroad tracks west of the Ace Hardware parking lot. People hid behind two concrete blocks to drink and do drugs. He lived across from the railroad tracks and often cleaned up the trash people left behind. He suggested the police consider sporadically walking through the area to prevent people from sleeping there. He was also concerned for people crossing the railroad tracks at night on their way home. Terry Skibby/611 Beach Street/Spoke to agenda item #3 and handed out photographs of the fountain in Chautauqua square that he submitted into the record. He wanted the City to retain the fountain and expressed concern about demolition and relocating the structure. The fountain was placed in 1990 and he saw it as historic compatible and provided background on the fountain. If the fountain were repaired and operational, it would be an asset to Ashland. It was important to have old and new structures. He clarified he was not speaking as the Chair of the Historic Commission. Mayor Stromberg suspended Council rules and asked Mr. Skibby as the Historic Commission Chair of a good place to relocate the fountain in Ashland. Mr. Skibby explained old historic fountains were best kept in their original location. If repaired and running it would most likely not attract the energy the Black Swan plaza currently did. 2. Look Ahead review City Administrator Dave Kanner reviewed items on the Look Ahead. Council discussed canceling the November 17, 2014 Study Session and combining those agenda items with the November 18, 2014 meeting and having an executive session as well. Council and staff went on to discuss whether to add a discussion on purchasing an aerial truck ladder for the Fire Department to a future Study Session. 3. Discussion of city communication tools Management Analyst Ann Seltzer explained that overall citizens thought the City did a good job providing information. A challenge was how the City could encourage citizens to be proactive and seek information about local government. The City website was the primary communication tool and the volume of information could be daunting, although a powerful tool for users. Ms. Seltzer clarified the Commission or Committee staff liaison are responsible for adding agendas and minutes to the website and explained three ways to access that information from the home page. City Administrator Dave Kanner added that through Google Analytics staff was able to determine the most accessed information and featured links are prominently displayed on the homepage of the website. Council suggested adding questions to pages to determine if the user found what they were looking for. Staff commented the search function was significantly improved in 2013. Council noted issues searching for documents and attributed it to key word and archive set up. Council also suggested adding the Budget Minutes for the City Council Study Session November 3, 2014 Page 2 of 4 in Brief and the Water Quality Report to the City Source inserts as well as use the backside of Utility billing envelopes as another way to communicate with the public. Other suggestions included working with the Southern Oregon University on informational videos and survey services, and have presentations on the budget. Council would send additional ideas to Mr. Kanner and Ms. Seltzer. Council could also contact Mayor Stromberg if they were interested in having a show on Town Hall. 4. Discussion of approaches to panhandling and the Black Swan plaza City Administrator Dave Kanner provided background and explained staff was seeking direction on which actions to pursue. Staff proposed a three-prong approach that included law enforcement, urban design, and community education. Deputy Police Chief Tighe O'Meara explained the enactment of the Enhanced Law Enforcement Area (ELEA) ordinance in 2012 which had a significant and positive impact on disorderly type behavior in the downtown area. The Police Department instituted a cadet program that provided an increased officer presence in the downtown area and worked with the Oregon Shakespeare Festival (OSF) and businesses to create a safer environment. OSF set up a gate between the Chamber of Commerce and Starbucks that eliminated nefarious activity. Enforcement for the proposed ordinance would require licensing and proof of vaccination for all dogs, consist of education and compliance first and would be complaint or observation driven. The ordinance was similar to Jackson County's code. The law would apply to everyone and staff considered it a legitimate public safety issue. Deputy Chief O'Meara clarified the dog license would be presumptive proof of vaccination. Council noted the enforcement guidelines needed to reflect the goal of public safety and not be a mechanism to move someone who was sitting in an area for a while. Deputy Chief O'Meara explained part of the education process was handing out resource cards and possibly, once or twice a year, facilitating discounted or free vaccination clinics. The Police Department would not progressively pursue enforcement and would apply the law to everyone. Deputy Chief O'Meara addressed the ELEA ordinance and requested adding language regarding the possession of controlled substance less than an ounce of marijuana to the ordinance, and expand the ELEA area to include the Bill Patton Garden. Public consumption of marijuana would be treated the same as consuming alcohol in public. Staff recommended amending the sidewalk obstruction ordinance prohibiting people and dogs to encroach sidewalk space. Another recommendation would continue the use of cadets in the downtown area to create a presence that would minimize behavior on the part of the person exhibiting behavior and make the target of that behavior feel less threatened. Council was concerned about being consistent with sidewalk obstruction regarding people and events like the sidewalk sale. City Attorney Dave Lohman thought the proposed ordinance needed further research. Deputy Chief O'Meara described the difference in the training police cadets and park patrol received. Police cadets go through the same background check and psychological testing as police. Staff clarified the current sidewalk obstruction ordinance required a 6-8 foot wide path on sidewalks depending on the width of the sidewalk. OSF Executive Director Cynthia Rider explained how having a food cart and removing the fountain and planter would make the space at the Black Swan Theatre inviting and welcoming. Mr. Kanner submitted Minutes for the City Council Study Session November 3, 2014 Page 3 of 4 an aerial shot of the Black Swan plaza and a diagram of the changes into the record. Under the lease agreement between OSF and the City, OSF has the right to make whatever improvements they wanted, could demolish existing structures, and does not require permission from the City. There was nothing in City records documenting the fountain and it seemed to be a handshake agreement. The City purchased the fountain for $12,000. Numerous attempts to snake the fountain work were unsuccessful. Mayor Stromberg suggested relocating the fountain and possibly involving the community in the process. Council discussed moving or repairing the fountain. Mr. Kanner thought repairing the plumbing and electrical systems would cost approximately $10,000415,000. OSF was willing to discuss making the fountain work. Council suggested determining whether the fountain could be repaired. If the fountain were moved to a new location it would have new plumbing and electrical. Councilor Voisin read from a 2000 lease agreement with OSF regarding alterations and written notification to the City. City Attorney Dave Lohman understood that OSF had the right to remove anything without City approval. Staff will research the lease further and report back to Council. Council comments ranged from relocating the fountain without repairs, determining the cost to repair the fountain, and involving the public, to deeding the fountain to OSF. Staff clarified the property in front of the Black Swan was public property leased to OSF with a gray area of when the sidewalk ended and the Black Swan property began. Mr. Kanner addressed community education that would consist of signage in the downtown area that the City provided resources for people in need and encourage support for those resources rather than giving money to panhandlers. Council supported staff drafting the ordinance requiring all dogs to be licensed and vaccinated but wanted to know how it would be enforced and fair. Council supported amending the Enhanced Law Enforcement Area ordinance but had concerns regarding the sidewalk obstruction ordinance and directed staff to bring it back to a Study. The remaining proposed ordinances could be brought forward at a future Council meeting. Mr. Lohman added he would research all the proposed ordinances to determine whether they were possible in Oregon prior to creating drafts. Council majority was not interested in pursuing a tobacco free downtown, establishing busking zones, or reconstructing planters to ground level. They discussed changing the orientation of existing sidewalk benches. Comments supporting the suggestion thought it was worthwhile to analyze locations and determine whether it made sense to change the orientation. Council majority was willing to hear more information. Council did not support providing food carts for transients but was interested in creating an outreach program downtown connecting people with the Resource Center and other services. Council was not interested in pursuing any of the suggestions under "Other ideas" submitted by citizens or the time, place, and manner restrictions on panhandling in Santa Cruz, CA. 5. Food and Beverage Tax enforcement update City Administrator Dave Kanner explained the City was acting on a complaint and found sale of prepared food by vendors at the Rogue Valley Growers and Crafters Ashland Tuesday Market without paying or reporting the Food and Beverage Tax. The City notified and informed two vendors they needed to pay the tax and both vendors ignored the City's notification. Mr. Kanner stated that there was a common misconception that someone working pursuant to a non-profit business license was not subject to the Food and Beverage Tax. This is not the case. Minutes for the City Council Study Session November 3, 2014 Page 4 of 4 The City requested the Rogue Valley Growers and Crafters Market to provide a list of prepared food vendors. The Rogue Valley Growers and Crafters Market did not respond to the request and instead sent a letter to the City asking to forgo enforcement of the Food and Beverage Tax collection until the 2015 season. City responded they were still waiting for the list of food vendors. Mr. Kanner also noted the hard line the City had previously taken with others who did not pay the Food and Beverage Tax. He stated that equal treatment should be the same for these vendors. Council expressed concerns on enforcing the Food and Beverage Tax at this time, on waiting until 2015 to address the issues of the Rogue Valley Growers and Crafters Market, and the lack of response to the City. They discussed compliance, the issue of fairness to the businesses that paid the tax and a possible timeline for the vendors in question to respond or the City. Concern was noted on moving forward with no negotiation. Council moved the item to a future Council meeting for further discussion. Meeting adjourned at 7:57 p.m. Respectfully submitted, Dana Smith Assistant to the City Recorder CITY OF -ASHLAND Memo DATE: 11/12/2014 TO: Ashland City Council FROM: Linda Reid, Housing Program Specialist RE: Housing and Human Services Commission Annual Update to the Council Mayor and City Council, The Housing and Human Services Commission is pleased to report on the work we have undertaken since the commission met for the first time in January of this year. Further the Commission would like to provide the Council with a brief overview of the commission's areas of focus in the coming year. Strategic Plan The first charge given to the newly formed Housing and Human Services Commission was to undertake an evaluation of the City's current social service grant program and for the commission to make recommendations for changes that would make the program more efficient and effective for both the grantees and the intended beneficiaries. To this end the H&HS commission developed a four year strategic plan for the use of these funds, researching demographic data about the community and its social service needs, initiating outreach activities to gather feedback from grantees, service providers, stakeholders, and key informants from a cross section of the Ashland Community. The feedback gained from outreach activities, and research was then used to inform the strategic plan priority goals and implementation strategies. The resulting draft of this work will be discussed further under a separate agenda item. Student Fair Housing At their regular meeting on April 1, 2014 the City Council approved a motion to "direct the Housing and Human Services Commission to study and develop a recommendation on whether students should be added as a protected class in the City's Fair Housing Ordinance". To this end the Commission has worked closely with the H&HS commission student liaison and the Fair Housing Subcommittee of the ASSOU Student Government. Currently the commission and students are in the process of gathering feedback from property owners. The Commission expects to have more time to devote to this project upon completion of the Strategic Plan project. DEPT. OF COMMUNITY DEVELOPMENT Tel: 541A88-5305 20 E. Main Street Fax: 541-488-6006 Ashland, Oregon 97520 TTY: 800-735-2900 ~4 a&A www.ashland.or.us 17 CDBG Consolidated Plan Update City staff and the H&HS commission are beginning the process of updating the City's 5-year Consolidated Plan for the Use of Community Development Block Grant Funds. That activity kicks off with a community outreach event to be held on December fifth. There are several aspects of this project that the H&HS commission will be assisting with, throughout the next several months. This activity will be completed by June of 2015. Goals The Housing and Human Services Commission held their annual goal setting retreat on August 28th. At the retreat the Commission identified several areas of interest to explore including: employment programs, and a variety of housing activities ranging from increasing opportunities for affordable homeownership to transitional housing for vulnerable populations. Given the direction from the Council regarding the Ashland City Council Priority Strategic Planning Goals and Objectives, the Commission is scheduled to review both the Council's priority goals and the Commission's identified goals at their next regular meeting in November. At that time the Commission will further prioritized the areas of interest to be consistent with and support the Council's identified strategic planning goals. DEPT. OF COMMUNITY DEVELOPMENT Tel: 541488-5305 20 E. Main Street Fax: 541388-6006 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.orms ASHLAND DOWNTOWN PARKING MANAGEMENT & CIRCULATION AD HOC ADVISORY COMMITTEE MINUTES October 1, 2014 CALL TO ORDER The meeting was called to order at 3:30 p.m. in Pioneer Hall, 73 Winburn Way Regular members present: Pam Hammond, Michael Dawkins, Rich Kaplan, Dave Young, John Williams (left at 5:10), Emile Amarotico, Lisa Beam (left at 5:05), Marie Donovan (arrived at 3:45), and Liz Murphy Regular members absent: Cynthia Rider, Craig Anderson, Joe Collonge, John Fields Ex officio (non-voting) members present: Sandra Slattery, Bill Molnar, Rich Rosenthal (left at 5:00), Katharine Flanagan, Mike Faught, and Lee Tuneberg Ex officio (non-voting) members absent: Mike Gardiner, and Dennis Slattery City of Ashland Staff members present: Tami De Mille-Campos, Kristy Blackman, Maria Harris (left at 5:05) and Dave Kanner (arrived at 4:00) Non members present: Don Anway (Neuman Hotel Group), Linda Fait (Diamond Parking), and Bob Hackett (OSF) APPROVAL OF MINUTES Minutes of September 3, 2014 Approved by unanimous consent. PUBLIC FORUM Tony Bloom, 445 N. Laurel St. He has lived in Ashland for 34 years. He rides his bike around town in the spring, summer & fall (not winter). It is very convenient because he has a post office box downtown so he often bikes downtown without having to find a place to park. He goes to Varsity theater, Shakespear and a lot of other places on his bike. But he is unable and unwilling to ride on Main Street downtown with 3 lanes of traffic and no dedicated bike lanes. It's not safe for bike riders. He would like to see the committee strongly consider establishing a bike lane downtown. It may mean giving up a traffic lane but the time to do that is here. The Hwy 99 corridor plan that ODOT has come out with, they are envisioning a bike lane all the way from Garfield to the North end of Ashland & we already have a bike lane that comes up from the north end of Ashland almost to downtown as well as on the south end of town but there is no connectivity of the two. He would like to be able to ride through downtown without having to go around side streets. Deb Cleland, 501 Pompadour She has been the manager of Waterstone Spa for the past 8 years. She stated finding adequate parking for guests has always been a source of frustration. It's frustrating for them because they are in the business of providing a relaxing experience to the visitors of Ashland and even though they tell their guests to be sure & allow extra time to find parking, they often arrive to the spa late for their appointments. Often times they are upset because they had so much trouble finding a place to park. They have people that book '/z day and day long retreats at the spa and they have the need for long term parking which there is very little of in the downtown area. It is their opinion that they would be serving visitors of Ashland much better if they had additional parking in the downtown area, particularly 4 hours or longer. Don Anway, General Manager of Neuman Hotel Group He attended the last meeting and had some concerns about the original plan that was presented. Parking structures were not even really presented and someone at the last meeting had mentioned that this needs to be brought back up. Neuman Hotel Group purchased 2 new properties within the last year and a half and both of them are on the outskirts of Ashland. One of the things he heard going into this was people don't stay there because it's on the outskirts. He said he can tell you that is false. They haven't had any problem with people staying at these hotels. The issue is where they park when they come into Ashland. He said most recently Nike was in town and they wanted to stay downtown but all of the hotels were full so they fortunately put them up a Lithia Springs and in order for them to put them up there the requirement was for them to supply downtown parking. In order for them to accommodate this they had to sacrifice parking at Ashland Springs. He agrees that we need to educate, we need directional signage but that doesn't solve the supply issue. This is an ongoing issue that they hear from catering companies. They even lose weddings due to having to worry about where to park on a Saturday. He agrees they need to escalate parking. ASHLAND DOWNTOWN PARKING MANAGEMENT & CIRCULATION AD HOC ADVISORY COMMITTEE November 5, 2014 Page 1 of 6 He feels the real problem is just being ignored if they think they can ignore having parking garages built. Williams asked Anway if it is his sense that guests staying on the outskirts of town would utilize a trolley or a shuttle bus. Anway answered he would love to say that is going to fix the problem but guests like the flexibility of having their own transportation. The average age of our visitor population is 65 plus. It's not people that don't mind waiting for 30 minutes to get to the other side of town. He said another thing to keep in mind is that Ashland Hills is just starting. They just opened 14 new rooms 2 weeks ago, they're opening another 18 rooms next week and by next Spring another 50 rooms. They have been shocked by the occupancy. They added 12 new rooms at Lithia Springs and they were at 90% occupancy there. They went from 50 to 75% occupancy at Ashland Hills in September, with the new rooms. He stated there is demand for tourism, which that's what the next 5 years shows, but if we don't get this fixed this won't be a top tourist destination. Vince Allen, 126 S, Pioneer He has concerns about the intersection at Pioneer/Hargadine/Fork, especially considering the theater being there. Chair Young informed him that this was actually a matter for the Transportation Commission and invited him to share his concerns with that commission. PROGRESS REPORT OSF Patrol Survey • OSF patrons do not have a problem finding places to park • Respondents prioritize parking convenience over cost • Wayfinding and informational resources need improvement • Bicycle infrastructure improvements will have little effect on current OSF patrons Slattery stated she read all of the patron comments and there were a number of people who indicated they thought a parking structure was important and needed. She said as we know with surveys, sometimes it depends on how the questions are asked and there wasn't a question that asked if they thought more parking was needed so she felt like there could have been different answers had that question been asked. Souza said she thinks at that point they were more concerned with seeing how their patterns were less concerned with adding to the supply. Anway spoke up and Chair Young responded that they needed to move on. Evening Monitoring Session • More of a distribution problem than a supply problem • Employees park in the Railroad District during the day • Downtown core fully occupied through afternoon and evening • Loading zones not frequently used Slattery mentioned she disagrees with the statement that Ashland has more of a distribution problem than a supply problem. She questioned if it is a supply problem if you are just relocating cars to other parts of town. Souza said their interpretation is that 85% occupancy level is ideal. Slattery stated that maybe she is the only one observing this. Chair Young said the committee has already vetted this issue and then directed the consultants towards the "low hanging fruit" in phase 1 and then evaluating the success, moving onto phase 2 if necessary. Given that, he doesn't feel it's necessary to re-litigate that during this meeting because of the limited time. Slattery asked if everyone agrees with that, shouldn't there still be a statement that would say at some point parking supply should be looked at? Parker answered that is in phase 3 of the plan. Part of this ends up being a matter of what's the extent of the service do you want to provide, how far should people have to walk etc. Their observation is when you look at the downtown study area that it is a distribution problem, there is capacity but based on behavior patterns people park as close to their destination as possible. The direction they've been getting from the committee is, focus on solutions that may not even require policy changes before you make huge investments in more structure parking. He added he doesn't think the committee has ever said any of this is off the table. The direction they seem to be leaning towards is a phased approach. Kaplan stated he thinks the committee agrees the supply strategy is in phase 3 but he doesn't know that it prevents the possibility of studying supply under phase 2. The actual building of the infrastructure he thinks definitely belongs in phase 3 due to the high cost of doing so. Faught said one of the things he thought about is even if increasing ASHLAND DOWNTOWN PARKING MANAGEMENTS CIRCULATIONAD HOC ADVISORY COMMITTEE November 5, 2014 Page 2 of 6 supply is included in phase 3 the group still may want to discuss potential locations as those may not be available in the future. He doesn't think this goes away, phase 3 could still be out there but the group could still strategize about this which is the request he is hearing from some people. BICYCLE LANE • The Scope of Work originally stated "evaluate alternatives generated during the TSP" • The TSP prioritizes improvements, and this project cannot legally supersede that document • A major focus of the project was to distill perceptions of current facilities and opinions of improvements • First survey asked about perceptions of walking and biking in downtown • Second survey asked about various bicycle improvements including bikeshare, additional bike parking, incentive programs, bike facilities on E. Main • CPW took that data and incorporated it into the plan • Neither residents nor visitors said pedestrian safety was a major issue • Recommending: - Increase in bicycle parking, an increase in bicycle wayfinding signs, and developing a bicycle map with routes and amenities - Working with RVTD to encourage employees to walk/bike/take transit - Bicycle facility on E. Main Street CPW would like to hear if the committee would like to continue to have a discussion regarding bicycle facilities on East Main. If so, then they would propose that the committee spend the November or December meeting talking about the configuration of that and what they would like to have included in this plan. Williams said he would like to at least have a discussion about it. Dawkins said he definitely feels they need to have that discussion because as was pointed out there are very few that are comfortable riding their bicycle through downtown. He added there are sharrows in Medford, along Central and he doesn't see anyone riding along there. Chair Young asked CPW if they are looking for more than that or if that is sufficient. Parker answered he thinks this is sufficient. Hammond added she would like to know ahead of time what the changes mean to parking (i.e. how many spots will be lost etc.) because she doesn't want that to happen. She also would like to know how it would affect deliveries. Dawkins stated we've often looked at the physical makings of one but he thinks there may be other ways of looking at biking downtown without changing what is there. He thinks that would be part of the discussion. Chair Young pointed out that when the maps were distributed to the committee in April of this year those were intended to plant the seed and get everyone thinking about the possibilities. Parker said they would like to format a productive and efficient discussion regarding this. He would like to talk to Dawkins about some of his ideas that aren't included in the original Transportation System Plan (TSP) & maybe try to incorporate those ideas. Anyone with ideas may feel free to email those to Tami De Mille-Campos. PARKING AND CIRCULATION MANAGEMENT PLAN Zone/Permit system • Evidence based strategy - Feedback from committee is no discussion of satellite lots/metered parking at this point - A zone/permit system is the most aggressive strategy before implementing metered parking and in CPW's eyes addresses many project concerns - Visitors say 4 hours is the amount of time they need to visit downtown -4 hour parking was busiest in evening monitoring • Balances the needs of visitors, residents and employees: - Visitors can park from 2 PM on without moving vehicle when visiting Ashland - Doesn't prohibit residents from using street space near their home - Acknowledges current employee behavior of parking in RR District and subsequently works to control it Parker stated they are asking the committee to look at this as one part of the plan. He thinks the details of the plan should be somewhat flexible & it may mean that adjustments need to be made shortly after they're implemented. He mentioned that in respect to enforcement of time limited spaces they did have a conversation with Fait (Diamond Parking) and Tuneberg. They talked about some of the administrative issues related to some of the proposals. Fait said as far as the area around the co-op that is out of their area of enforcement. Donovan wonders if the parking that we already have downtown (structure, open lots etc.) can be used for paid employee only parking. She thinks that might help to free up some of the parking along the side streets. She feels one of the issues is that employees go ASHLAND DOWNTOWN PARKING MANAGEMENT & CIRCULATIONAD HOC ADVISORY COMMITTEE November 5, 2014 Page 3 of 6 around the loop trying to find parking and when the structure and lots are full they are parking on the side streets. She asked what if there were designated employee parking areas. She also mentioned that she is worried that pushing the employees into the residential areas undoes the work that planning has done during the development stages. Williams asked if there was one set spot, for instance the Lithia/Pioneer parking lot, if that would be central enough (from say the Library and Bards Inn) that employees would use it. Donovan answered they do that currently. Parker said when we think about this the issue is how to manage employee parking without creating a mess. He doesn't think you want to be punitive necessarily because it isn't in line with the guiding principles which states to provide access to everybody, including employees. Kaplan asked for a more detailed map that shows current parking spaces versus proposed. Hammond pointed out she doesn't think they're capable of determining the details of the permit system. Young added that the number of cars isn't going to drastically change with this. They are just trying to identify the high turnover areas which are important for the downtown businesses. Hammond asked if the increased revenue from the parking fines can be put aside for future infrastructure improvements she would like to see this put towards solving the problem. Faught replied part of what they are doing is seeing where they are going conceptually & then staff would see how to make that work. They would need to make changes to Diamond Parking's contract which would have a cost associated with it and then they would take a look at revenue versus expenses. Kaplan stated he has concerns regarding what staffs role is vis-a-vis committee. Faught answered he does not want to go to Council without having gone over those things first. Young responded that conceptually that's enough for the TSP. The difference is when it comes to implementation time that is when the process begins for the specific details. He sees this as a two prong process. He doesn't think they need to work out all of the details in order for Council to approve this being folded into the TSP. Parker explained there is a balance between those things and he agrees with both sides. He said for their part he doesn't think their scope includes getting into all of the details but Hammond does bring up some really good questions. He answered that what they're proposing in terms of fines and fees isn't intended to generate enough money to go into a fund that will pay for parking structures. The purpose is to strategically manage parking. He also added that it's a big undertaking and that's part of the reason they think the City ought to be thinking about these other approaches before investing millions of dollars into structured parking. Fait mentioned that in other cities in the residential areas (such as between Lithia Way and A Street, then Fifth down to Oak) you have one side of the street strictly for residential permits and the other side would be the timed parking or downtown employee parking permits. The same thing could be done on Hargadine and S. Pioneer /Fork. It gives the residents their own side of the street to park on. Hammond stated she thinks they need to know how many residents there are, how many use on street parking etc. Flanagan responded to an earlier comment. She wanted to remind the committee that we could see an influx in supply due to the convention center re-opening in June of 2015. Anway added that we aren't even thinking about our existing structure. He asked the committee to think about the Armory. The Armory is handicapped because there is no parking. The Oregon Psychiatric Association just held its annual fall conference at the Armory. They are so excited about Ashland Hills because they have been holding their conference at the Armory for the past 6 years and there is no parking. He added the idea that moving cars a few streets over is going to fix it is ludicrous. He doesn't think the plan fixes where we are at as a community. Faught remarked he appreciates that feedback and that is really what the committee is about. He is interested in hearing what the rest of the committee has to say about that. He said he saw a lot of heads shaking like they agree. Hammond and Donovan both voiced their agreement with Anway's concerns. Dawkins said it is very obvious that we need more parking but the question is who is going to pay for it. He added when Anway was talking about the Armory it made him think about possible partnerships such as the Church parking lot near the Armory. Young said Anway's points are well taken. He stated things are changing on the planet; demographically people are getting healthier/more active, multi-modal transportation is higher and people are less inclined to own more than 1 vehicle. The committee is looking at a 20 year plan and it doesn't say they won't look at expanding parking structures. He said he is a little surprised that they are in the position of defending what was already agreed to in terms of looking at the non costly solutions to better utilize parking. Donovan said she wants to be clear that she wasn't recommending a parking structure. She was thinking more in terms of looking for ASHLAND DOWNTOWN PARKING MANAGEMENT& CIRCULATIONAD HOC ADVISORY COMMITTEE November 5, 2014 Page 4 of 6 areas that could accommodate parking right now; such as public-private partnerships. Anway added that the details of how things are going to be executed, is where things are falling apart. Williams commented on the zone/permit system. He appreciates CPW trying to come up with a good solution but he is hesitant on whether it would achieve much of an impact as proposed. One of the big issues he sees is where do we have the employees park. They could park in a different area that is still convenient enough that they'll use it. If that issue can be addressed then that frees up a lot of parking but he wonders if there are enough examples from other cities that have done this to show that it would address that problem. Parker answered yes. He backed up a little and said he feels they are getting a bit of mixed messages from the committee & he went onto say that he is invested in this to the extent that he wants to see the City get to a resolution. He's hoping the committee doesn't get lost in the details. He said there has been some really compelling comments along the lines of not having the map right. If they can get further direction on this then they can come back with data on the number of current and proposed spaces for each category. He feels they have proposed something that needs some refinement but has the potential to address this at least in part. Hackett replied he commends that. He stated this isn't just moving people around but it is moving people around based on intelligence and by constituency. He added to Young's point this is the first phase, this is what can be done with what's currently on the ground. The map is responding to data that the committee has received about what is preferred by visitors, what is needed by residents and what are some of the behavioral patterns that employee's exhibit. He added that this seems to take into account, to a large degree, what we heard back from patrons and businesses. Williams asked how much it would cost to implement a system like this (signage, labor etc.). Faught stated he doesn't want to speculate. Once he has the details then he can come up with the numbers. Williams said it really helps him to look at ideas by comparing costs. Amarotico said he was thinking about Donovan's idea and has a different twist on it. Instead of making those parking structures pay, if employees could get a free employee parking pass to park in a specific area then that would get them off the streets and make street parking more accessible for the downtown businesses. Donovan said she was thinking more along the lines of the open parking lots that would be on the edges of downtown. Parker added that any land used for parking is land that's not used for other stuff that is really more attractive than parking and real estate is at a premium downtown. He also reiterated what Faught said earlier about it being a good idea to look at potential locations for future parking structures because once the private sector comes in and builds then it becomes economically infeasible to do anything. Parking Fines • Proposed management strategy - Increase all parking fines to $22 - Maintain punitive increases for repeat offenders - Move towards developing an online interface for paying parking tickets Tuneberg said they looked around at other agencies our size and the average parking fine is about twenty five dollars. Parker pointed out they removed the fifty percent discount option after talking to Tuneberg and Fait. It would be impossible to implement efficiently unless there were some type of online payment system. So they decided to take that off the table and start with something simplistic. He added that it has been seven years since the fine was last increased. Kaplan asked if there is a precedent for letting people know in advance what the parking fines are. He doesn't think it is a deterrent unless you know what the fine is. Parker replied those things change frequently so you might look at a stickered system of some sort because it would be too costly to replace the signage every time the fines change. Fait added there are a lot of cities that do post their fines on their website. Kanner stated he and Tuneberg have been discussing the Cities low parking fine recently and would ask the committee to make and vote on a motion to recommend that the Council immediately address parking dines, rather than waiting for the parking management plan come to the Council. Due to having lost several members of the committee towards the end of the meeting and since this wasn't on the agenda the committee decided to add this to November's agenda. Young stated this could even go to the Transportation Commission. Faught added he would recommend that this committee vote on it first before doing that. The problem with involving the Transportation Commission is that they don't have all of this background data that the downtown committee has. CPW recommends ASHLAND DOWNTOWN PARKING MANAGEMENT & CIRCULA TION AD HOC ADVISORY COMMITTEE November 5, 2014 Page 5 of 6 that they raise the fines independent of the plan. They agree the fine is too low. Kaplan asked if it's possible to get information regarding what percentage of cars logged are issued citations. He added that might be useful for tracking progress after the fine is increased. Tuneberg said part of the problem they have is that the benefit of Diamond Parking is they gather a lot of information but when you're asking for information that is specific to something that they weren't collecting for then it's hard to provide numbers on it. There are also areas that they don't patrol at all so you'll have this hole on the residential side because they don't patrol those areas. If the committee wants them to patrol those areas then we'll need to generate revenue to cover the cost so the committee will need to decide on that. Parker responded that the guiding principles don't necessarily include revenue generation. Now, that would affect the budget but that's something they'll have to flush out. MONITORING METRICS Monitoring and Maintenance • Survey • Parking Utilization Monitoring • Website Monitoring • Permit Monitoring • Parking Violation Monitoring Survey • Downtown residents, employees, visitors, business owners • First conducted after first full summer season and as needed • Evaluate changes in parking perception and behaviors • Similar to Parking Perceptions Survey (administered in January) Parking Utilization Monitoring • Sample occupancy patterns • Minimum of 3/year for first 5 years • Variety of days/times - Peak and off-peak - Weekday and weekend - Daytime - Evening • Goal: < 85% occupancy, high turnover Other Monitoring • Website - Number of hits; fluctuations of website access • Permit - Number of permits sold to employees and residents; • Parking Violations - Number of violations given; delinquent or unpaid violations Parker mentioned he would recommend Faught and Molnar consider getting an intern to do more data points on it which would be helpful. Next meeting is set for November 51h, 2014. ADJOURNMENT Meeting adjourned at 5:30 pm Respectfully submitted, Tami De Mille-Campos, Administrative Assistant ASHLAND DOWNTOWN PARKING MANAGEMENT & CIRCULA TION AD HOC ADVISORY COMMITTEE November 5, 2014 Page 5 of 6 ASHLAND HISTORIC COMMISSION Meetinq Minutes October 8, 2014 Community Development/Engineering Services Building - 51 Winburn Way - Siskiyou Room REGULAR MEETING - CALL TO ORDER, 6:02p.m. - SISKIYOU ROOM in the Community Development/Engineering Services Building, located at 51 Winburn Way Historic Commissioners Present: Mr. Skibby, Mr. Swink, Mr. Emery, Ms. Renwick, Mr. Whitford, Mr. Giordano Commission Members Absent: Ms. KenCairn (U), Mr. Shostrom(E) Council Liaison: Mike Morris, Absent Staff Present: Staff Liaison: Amy Gunter, Clerk: Regan Trapp APPROVAL OF MINUTES: Historic Commission regular meeting of August 6, 2014. Mr. Skibby motioned that minutes be approved from August 6, 2014 and Ms. Renwick seconded. Motion passed unanimously. PUBLIC FORUM: There was no one wishing to speak. COUNCIL LIAISON REPORT: No report was given PLANNING ACTION REVIEW/PUBLIC HEARING: There were no planning actions for review. OLD BUSINESS: There was no old business to discuss. NEW ITEMS: A. Review Board Schedule Oct 9th Dale, Allison, Sam, Bill Oct 16th Tom, Sam, Dale Oct 23rd Terry, Bill Oct 30th Terry, Sam, Allison Nov 6th Keith, Bill, Dale B. Pro'ect Assignments for Planning Actions PA-2014-01388 107 Fork St. Eme PA-2014-01126 345 Lithia Way-Gas station conversion to retail/restaurant Giordano PA-2014-00725 121 Manzanita-Under construction___ _ Whitford PA-2014-00725 469 Allison-Under construction Swink PA-2014-007101711 143/135 Nutle Swink and Whitford PA-2014-01283 172 Skidmore Shostrom BD-2013-00256 175 Lithia Way - Under construction Giordano BD-2013-00718 5 B Street - Under construction/ almost done Not Assi ned PA-2014-00251 30 S. First St. - No new permits issued Whitford PA-2014-00491 566 Fairview St. - Under construction/almost done Shostrom BD-2013-00813 374 Har adine - Under construction/almost done Swink PA-2013-01388 14Calle Guanajuato Sandlers Restaurant-Under construction Renwick PA-2013-01421 270 N. First St.(Nisha Jackson)- Building permits issued Renwick _ PA-2013-01829 60 Alida St. Lieberman - Complete Shostrom PA-2013-01828 310 Oak St. (Thompson) - No new permits issued Shostrom C. Heritage Barn Workshop. Mr. Giordano spoke in detail about this workshop and said he was impressed with Washington State's progress on restoring old barns. D. CLG Training review Mr. Skibby attended the CLG training and said that we are recognizing the standards well when it comes to the grant. We had the highest attendance from our commission at this conference with 5 of our members attending. He suggested we post the award received on the website. E. Welcome, Bill Emery, the newest Historic Commissioner appointed on September 2, 2014. DISCUSSION ITEMS: A. Lithia Way & First Street, pre-application submittal. Ms. Gunter opened by discussing the Plaza Central pre-appication proposal in detail, and provided the commission with the downtown design standards for further discussion. She stated there are some concerns with this project, such as, the First street building, having no real defined base and different windows. She stated that staff felt it looks like it could be two different types of buildings connected as one. Mr. Severson, planner on this project, spoke about the specific details. Mr. Severson spoke about the pre- application and stated that most of the site issues have been addressed. Mr. Severson said that the applicants want to address the design standards now, before the project goes any further. Mark Knox, of Urban Development services, spoke about the project in detail, saying that their intent is to make it look like two different buildings. Mr. Knox stated that the idea is to attack both projects at one time and be finished and complete within 2 yrs. Jerome White, architect, spoke about the specific project details and design of the building. Mr. White said they are being consistent with the downtown design standards. Mr. Knox said that they are asking for an exception on the windows from the design standards. Mr. White stated examples where the windows are triple wide and said in order to simplify the look they have to build it this way. Mr White also spoke about the issue of the livability of the space and there being only a few windows per living space. Mr. White talked about the types of materials being used and stated that they are still in the early stages but are favorable to the red brick with stucco look. He stated that the decks will hardly be seen and there is a possibility of using "accordion type" windows that could be opened to make a covered deck. It wouldn't compromise the interior space and would comply with the design standards to have decks that don't distract, but provide livability for tenants. Mr. White talked about the color of the building being more of and off white, like City Hall, not a bright white. The Commission agreed that it's moving in the right direction and like the project as a whole. Mr. Skibby said that the project isn't over done at all and Ms. Renwick loves the inset balconies. Mr. Swink likes the simplicity of the building and said it adds interest to the street scape. Mr. Whitford likes the concept and thinks they are doing a first class job. Mr. Knox said they are submitting in Nov and will come back with more design details and brick details as well. Mr. Severson asked opinions from the Commission on the accordion windows and the full floor base. Mr. Skibby said that it depends on the detailing but thinks it would work and said the bi-fold doors that open in sound like a good idea. The "accordion type" windows are well liked by the Commission. Mr. Emery asked about the width of the windows and Mr. White stated they are pretty thin and there will not be any mullion at all. Mr. Emery asked about the divided lights in the windows and Mr. White said they haven't made a decision yet. Steve Ennis, architect, discussed the pre-application for the Plaza North building on taxiots 10104 and 10105, in depth. The applicants propose to consolidate the lots and obtain a site review permit to construct a three-story 9,628 square foot building. Mr. White explained that the building has a very strong base and that some of the materials being used are red brick and split faced block, with stucco on the rest of the building. Mr. Ennis said they have not decided on the dimensions of the wood windows or what the material of the headers would be as of yet. Mr. Skibby said that the design meshes well with Plaza Central and Mr. Giordano likes the massing but would like more information on the specific materials being used. He suggested they come back with further details on the trim, windows, and the corners of the building. Mr. Ennis said that they would like an exception to the design standard for the windows on this building as well. The commission agreed that the project so far looks good but need more details. Mr. Swink said that the stepping down works really well and dictates the design and they have brought this project together very nicely. Mr. Emery said it's a really good example of contemporary, yet complimentary design. ANNOUNCEMENTS & INFORMATIONAL ITEMS: Mr. Giordano and Ms. Gunter attended a Main St. historic preservation conference in McMinville, Oregon a few weeks ago. Mr. Giordano gave out informational pamphlets and Ms. Gunter discussed the event in detail. Next meeting is scheduled for Nov 5, 2014, 6:00 pm. There being no other items to discuss, the meeting adjourned at 8:04 pm. Respectfully submitted by Regan Trapp CITY OF ASHLAND Ashland Housing and Human Services Commission Draft Minutes September 16, 2014 CALL TO ORDER Chair Joshua Boettiger called the meeting to order at 4:35 in the Library at the First Methodist Church of Ashland located at 175 North Main Street, Ashland OR 97520. Commissioners Present: Council Liaison Joshua Boettiger Pam Marsh Heidi Parker Connie Saldana SOU Liaison Michael Gutman Andrew Ensslin Coriann Matthews Rich Rohde Staff Present: Gina DuQuenne Linda Reid, Housing Specialist Commissions Absent: Carolyn Schwendener, Admin Clerk Sue Crader Regina A ars Approval of Minutes The minutes of the August 28, 2014 Housing and Human Services Commission meeting were approved as presented. PUBLIC FORUM No one was present to speak. STRATEGIC PLAN UPDATE/SUBCOMMITTEE REPORT Boettiger gave a subcommittee report. As the deadline for the Strategic Plan is fast approaching the following topics were discussed to help with the process. • The Commission needs to give more clear recommendations to the City Council. • Suggested that fewer organizations receive more money • Focus on mental illness, low cost affordable housing, job/life skills, homelessness • Connect in a clear way with Ashland's City Council 2020 goals • Key interviews with the following stakeholder groups law enforcement, businesses, social service agencies, basic needs/homeless providers, schools, faith communities, environmental agencies, OSF, health care providers, media/news stations and housing providers. By doing interviews it would give the Commission some data to work with regarding what the greatest community needs are and how to address them. The following three questions will be asked in the interviews and Reid will email them out to the Commissioners. 1. What do you see as the greatest community need? 2. Please provide us with a list of your opinions on unmet service needs or gaps in your community. 3. Any additional comments, concerns or suggestions Saldana/Mathews m/s to modify the questions from the previous survey to be used for interview questions for Key Informants. Voice Vote: All ayes motion passed unanimously. The following is a list of Commissioners and which entity they will contact for interviews • Environmental - Saldana • Law Enforcement - Gutman • Mental Health/Health Care - Rohde • Business/OSF/Co-Op - DuQuenne • Access/Housing Authority/Property Management companies - Matthews • Faith Community - Boettiger • Schools/SOU/Ashland Public Schools - Parker • Media - Reid • Maslow - Ensslin • Veterans Administration - Ayars • Head Start/Living Opportunities - Crader The interviews will need to be completed and results sent to Reid no later than October 10, 2014. Reid proposed to present the Strategic Plan Draft to the City Council at their Study Session on November 17, 2014. Put the Strategic Plan on next month's agenda. CAPER REVIEW AND APPROVAL Reid explained that the City of Ashland is an entitlement jurisdiction, receiving an annual allocation of Community Development Block Grant (CDBG) funds from the US Department of Housing and Urban Development (HUD). As a recipient of CDBG funds, the City is required to prepare a five-year strategic plan that identifies housing and community needs, prioritizes these needs, identifies resources to address the needs, and establishes annual goals and objectives to meet the identified needs. This five year plan is known as the Consolidated Plan. The Consolidated Annual Performance and Evaluation Report (CAPER) addresses the goals identified in the 2010-2014 Consolidated Plan which was approved in April of 2010. Reid reviewed the CAPER report with the Commissioners. This is a valuable report as it collects a lot of good information about the things the City is working to accomplish, stated Reid. Rohde/Mathews m/s to approve the CAPER Report. Voice Vote; All Ayes motion passed unanimously. STUDENT FAIR HOUSING PRESENTATION LIST AND PAIR-UP Ensslin is currently working on preparing a list of landlords to interview regarding Student Fair Housing. Suggested contacts were; Southern Oregon Renters Association (SORA), Commercial Property Management (CPM), Pacific Properties, Ashland Property Management, Craig's list, as well as private individuals. In the City it is required to register for a business license if you have two or more units. The business license applications would be another source of names. Ensslin has prepared a questionnaire and he and Christy Wright will do phone interviews. It was decided to postpone the Goal Review and Discussion topic on the agenda until a future meeting. LIAISON REPORTS DISCUSSION COUNCIL -Marsh conveyed that a concern was brought to the City Council regarding the issue of the behavior of the people on the street in the downtown area. Two downtown business owners appeared before the Council to explain their interactions with the people hanging around the Black Swan Theater. They also submitted letters from co-workers sharing their concern about the lack of safety downtown. Marsh stressed that Chief Holderness has been a very good resource and presence in the downtown area. The Council is putting this topic on an upcoming Study Session and Marsh invited any Commissioner who is interested to attend. SOU - Ensslin spent part of his summer organizing a welcoming event for new students that involves the downtown business community. It's called "SOU Loves Ashland." Ensslin reached out to over one hundred and twenty local businesses and asked if they would be interested in participating in the event. The event will involve sending five to six hundred freshmen to Lithia Park for lunch as well as a meet and greet. Ensslin went on to say he has eighty-four confirmed businesses participating. Students will be encouraged to visit ten to fifteen businesses of their choosing. The intent is to show students what the downtown has to offer, where to eat, places to shop and where to spend time. The event will take place Saturday, September 27, 2014 from 11:00 am to 4:00 pm. GENERAL ANNOUNCEMENTS - Saldana announced that you can now take the bus (RVTD) from the Medford transfer station to Grants Pass. The cost is two dollars. They are making five round trips a day. Parker mentioned that they are gearing up for the winter shelter for homeless again offering four nights a week. She encouraged anyone who might know of any church or organization who would be willing to host another night to let her know. They will be offering a training class sometime in October. OCTOBER 23. 2014 AGENDA ITEMS Put goal setting on the October agenda. Review of the Strategic Plan UPCOMING EVENTS AND MEETINGS November Housing and Human Services Commission regular meeting - To be determined due to Thanksgiving. ADJOURNMENT - The meeting was adjourned at 6:00 p.m. followed by a tour of "Uncle Foods" which is a volunteer run program that prepares meals for the homeless/low income families and individuals. Respectfully submitted by Carolyn Schwendener CITY OF ASHLAND Council Communication November 18, 2014 - Business Meeting Appointment to Forest Lands Commission FROM: Barbara Christensen, City Recorder SUMMARY Confirm Mayor's appointment of Luke Brandy to the Forest Lands Commission with a term expiring April 30, 2017 BACKGROUND AND POLICY IMPLICATIONS: This is confirmation by the City Council on the Mayor's appointment to the Forest Lands Commission. Ashland Municipal Code (AMC) Chapter 2.17.020 COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: None SUGGESTED MOTION: Motion to approve appointment of Luke Brandy to the Forest Lands Commission with a term ending April 30, 2017. ATTACHMENTS: Application Page 1 of 1 Fr, CITY OF -,S H LA►.N D APPLICATION FOR APPOINTMENT TO CITY COMMISSION/COMMITTEE Please type or print answers to the following questions and submit to the City Recorder at City Hall, 20 E Main Street, or email christeWashland.or.us. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name L_cl ke L-J/ Zt 1'l Requesting to serve on:tl, (d ~rre 1t'" r ~tQ~t ;onttnissian omnnittee) Address E e5t ~J'~c:.~- , / 5 r1 ~uYf~ Ill ~ SZ4 Occupation rZ re-skr- Phone: Home Sq 63 I-IZ7~ Work S ~-~,)~-Zt(G6 Email h hr AKAd e e W of -,4e Fax 1. Education Backeround p n _ / What schools have you attended? !V U(Awl ry71--Zoftc(- uryyer5" fi-9 i What degrees do you hold? ~kGke I v tir' S tN4A a,i em,,,,kgst loi,' d s4ra'~oyj What additional train* or education have you had at would apply to this position? W4 err Tr4 -4-4-p- feee'mh U5 jai= erv,'cs uvt ELM FyreS le 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? ~ y rp i(., fi? rp5 le n rI 1 Ct. IOC o G w~ i 5, 53 . Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? w[~ad { . 61(1 I& ~i{Gc~~MiL Qryvrjk arub rP-Jz i Y~+b~~. c~~ uv~,l t~~3 ~k1~~S' S ~ r~~~i~t G~; Ir~.~'t'~- ~t r`h ~<a~,U✓L 3. Interests Why are you applying for this position? Wt-t C ~ cr I C~~ o ack 'f (b ~O 01 (.4 fq ~ 04 P71 4. Availability V~ 1S wby'T 6Cah"Q u f Are you available to attend special meetings, in addition to the regularly schedul d meetings? Do you prefer day or evening meetings? to 6(\(-. ck vekC j Sea rye. '-J X\4 zic by f fes 5. Additional Information How long have you lived in this community? Gom C (a ryt 1 yea (s Please use the space below to summarize any additional qualifications you have for this position ) • e cx r So1V)'\Ac(f- ~F VVXJ Work hi -,4v(l r c ILI Date Signature Luke Brandy 955 Beswick Way Ashland, Oregon Evening Phone: 541-631-1277 Day Phone: 541-618-2406 Email: (brandy@blm.gov Forester: Planning and Preparation Medford BLM, Ashland Resource Area 3040 Biddle Road Medford, OR 97504 My duties include planning, coordinating, and performing complex technical and leadership duties in support of forestry oriented, multiple use land management programs. I function in a role that aids the successful accomplishment of the Ashland Resource Area long-range forest management program, meeting the objectives of the Forest Plan, and providing solutions for technical, budgetary, staffing, and customer service needs related to forest management. I serve as a senior specialist on designated forest management projects and I perform a variety of functions in the areas environmental assessment preparation, reforestation, and landscape forestry/ecology. Forester: Fuels Reduction Contract Manager US Forest Service Canyon Lakes Ranger District 2150 Centre Ave Bldg E Fort Collins, CO 80526 United States My primary duty was the administration of complex fuels reduction contracts. On average I administered 5 contracts per year with a combined value in excess of 1.5 million dollars and total acres treated of 1,500. Contract administration is a highly interdisciplinary job, on any given day I could be coordinating between multiple resources, members of the public, and industry representatives. During the field season I regularly coordinated with and led groups from various local state and county offices, the Rocky Mountain Research Station, the Regional Forester's Office, the Natural Resource Conservation Service, industry, and private entities on field trips to view and monitor operations. The fuels reduction projects I administered often surround developments in the Wildland Urban Interface and I shared information and resources with interested landowners and would take their comments back to my District Ranger and resource specialists. I developed speaking skills to avoid adversarial situations and unnecessary conflict, while focusing on partnerships and team work to get the job done. I also participated in Interdisciplinary Team meetings as an expert in vegetation management systems and project implementation feasibility. Forester: Planning and Preparation US Forest Service Wild Rivers Ranger District 26568 Redwood Hwy Cave Junction, OR 97523 United States I performed all aspects of field work and contract preparation for vegetation management contracts. As an Interdisciplinary Team member, I attended coordination meetings to ensure that resource protection measures were in place during management activities. I maintained working relationships with local industry and environmental organization representatives and often fielded phone calls and had visits from interested parties who relied on me to relay pertinent information regarding resource concerns, Forester., Contract Management US Forest Service Feather River Ranger District 875 Mitchell Ave Oroville, CA 95965 United States 05/2004 - 01/2008 1 inspected fuels reduction areas for contract compliance and made recommendations for rework or acceptance of different phases of work. I monitored vegetation management activities to ensure public safety, fire precautions, product accountability and resource protection. My reports detailed the various phases and quality of work taking place and were used to resolve disagreements and disputes with the contractors. I also worked with the district silviculturist to assess plantations for thinning and release needs. I recommended different types of treatment, such as hand release or mechanical release, based on environmental conditions, topography, and accessibility. Based on my field reconnaissance of the units, 1 gave recommendations for contract language and important items to include in the contract for resource protection. I functioned as an inspector for service contracts for planting, hand-thinning, and mastication of plantations. Undergraduate Research Assistant Ecological Restoration Institute Flagstaff, AZ United States 10/2002 - 05/2006 1 worked in a dendrology lab analyzing tree cores and fire scars to develop climate and fire history models of the Southwest. I aided Graduate students in collecting and analyzing data for forestry projects, ranging from wildfire and public relations to wildlife and botany. During the summer season I worked on a research crew measuring overstory and understory plots, took soil samples, and conducted wildlife surveys. I assisted in the conceptualization and implementation of a particular project to study the impact of downed woody material on grass and forb germination in previously barren areas. Using a computer database to record the data I collected from field work and from lab samples, I generated tables, graphs, and figures to be used in professional presentations. Wildlond Firefighter Greyback Forestry Inc. Merlin, OR United States 06/2001-10/2001 Duties, Accomplishments and Related Skills: I participated in wildland fire suppression activities in Oregon and California. I helped maintain tools and other equipment for crew use. Also, I assisted in fuels reduction activities. Education: Northern Arizona University Flagstaff, AZ United States Bachelor's Degree 05/2006 GPA: 3.87 of a maximum 4.0 Major: Forestry Honors: Magna Cum Laude CITY OF ,ASHLAND Council Communication November 18, 2014, Business Meeting Appointment to Historic Commission FROM: Barbara Christensen, City Recorder SUMMARY Confirm Mayor's appointment of Andrew Ladygo to the Historic Commission with a term expiring April 30, 2017. BACKGROUND AND POLICY IMPLICATIONS: This is confirmation by the City Council on the Mayor's appointment to the Historic Commission. Ashland Municipal Code (AMC) Chapter 2.17.020 COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: None SUGGESTED MOTION: Motion to approve appointment of Andrew Ladygo to the Hisotric Commission with a term ending April 30, 2017. ATTACHMENTS: Application Page 1 of 1 CITY OF ASHLAND APPLICATION FOR APPOINTMENT TO jy,,VZ Y COMMISSION/COMMITTEE ZP CIT Please type or print answers to the following questions and submit to the City, ecorder a 7 Q an uas'ri ~Z City Hall 20 E Main Street, or email christeb -ashland.onus. ifYou have Y q qn'~', please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name A)VVRau1 4,dDYe-- Requesting to serve on: s +--v&% (Commission/Committee) Address 3` 5- ;Wj1. 6,,44,cs Ay Occupation Cn~o t~sce~uA tam Phone: Home / - 70B - 5-Jt a Work Email rw>/ Fax _ 1. Education Background What schools have you attended? ~itt~si~ S~s7` o 7.zR vee c c-S~ What degrees do you hold? What additional training or education have you had that would apply to this position? 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? >~rs. ` ar-n .s eossritA,7,4-y ~fx~rJivt ~r, 3. Interests Why are you applying for this position? 6,c'Z91sVta W 9 v o . f ~.ai .tom GO Yh NI 4t N. 4_7 4. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? ELF e-, 5. Additional Information How long have you lived in this community? / Please use the space below to summarize any additional qualifications you have for this position ,~'T1~11-c..EE ED Date Signature ~r, ANDREW LADYGO Architectural Conservation Consultant 345 Fair Oaks Avenue Ashland, OR 97520 541-708-5118 allad@ashlandhome.net Andrew Ladygo, Architectural Conservation Consultant, began his conservation career in 1970 at the Society for the Preservation of New England Antiquities, (now known as Historic New England) one of the oldest and most respected preservation organizations in the United States. In 1971, he established their Building Conservation Workshop to address the large-scale conservation problems facing the SPNEA house museums. Systems developed at the Workshop were found to be applicable both to the public and private sector, and projects were undertaken throughout the United States. Mr Ladygo is a Life Member of the Association for Preservation Technology International and Associate Member of the American Institute for Conservation. He has taught courses and lectured extensively on technical aspects of historic preservation. Presently Mr. Ladygo is an Architectural Conservation Consultant operating from Ashland. Oregon, having recently relocated from Massachusetts. Services include on site survey and recommendation for treatment as well as execution/supervision of recommended treatments. Mr. Ladygo continues to offer these services primarily to museums, churches, and public buildings. Recent projects include a survey of the Brumidi frescoes at the U.S. Capitol Building in Washington, DC, Survey and treatment recommendations for the ceilings at St. Patrick's Cathedral in New York City, Restoration of the Legislative Chamber at the Nebraska State Capitol, and a survey and subsequent supervision of conservation treatments at the Burns Library of Boston College. Resume available upon request CITY OF ASHLAND Council Communication November 18, 2014, Business Meeting Social Service Grant Program Evaluation and Strategic Plan Review FROM: Linda Reid, Housing Program Specialist, reidl@ashland.or.us SUMMARY At their regular meeting on December 17, 2013, the City Council approved a motion to "request the new Housing and Human Services Commission (HHSC) to conduct an analysis of the current social service grant program, focusing on whether grants are targeted to the right areas and with the appropriate allocations, then have them bring those findings to a discussion with the Budget Committee." The Commission discussed the process of addressing the Council's request at their first meeting held on Jgg1IM 23, 2014. At that meeting the Commission discussed methods for evaluating the program and completing an inventory of available services and service needs to identify gaps. The consensus of the group was that a strategic plan with measurable goals and objectives could provide a framework for targeting awards to community needs and to assess the effectiveness of the program in meeting identified service gaps. The HHSC would like the Council to review the draft document and provide feedback regarding the proposed goals and the document itself to be incorporated into a final draft to be brought back before the council for approval in December. BACKGROUND AND POLICY IMPLICATIONS: To address the Council's request the HHSC undertook several activities. The Commission researched the origins of the program including its original purpose and goals. The Commission hosted a grantee/stakeholder/community forum to elicit feedback on the current application process, potential improvements, unmet community needs, and the overall efficiency and effectiveness of the program in general. The Commission also completed key informant interviews with a cross-section of the Ashland community. The interviews focused on met and unmet community needs to establish priorities for the program. Lastly, the Commission posted a topic on Open City Hall to inform the community about the strategic planning process and to elicit greater community input. Unfortunately the topic received no responses. The feedback garnered from the public forum, and from the key informant interviews, was directly incorporated into the strategic plan's strategic priorities and implementation strategies. The Commission also reviewed several data sources to identify community needs. These sources include: U.S. Census Bureau, 2012 Ashland School District Demographer's report, Jackson Care Connect 2013 Community Health Assessment, 2012 City of Ashland, National Citizen's Survey, and the State of Oregon Employment Department. Data from these sources were also used to inform the identified strategic priorities. Page 1 of 2 WAN CITY OF ASHLAND The feedback the HHSC received from the community outreach forum regarding the current application and award process was favorable. In general forum attendees were satisfied with the current process, found it to be easy and straightforward, efficient and effective. However, a desire for the City to identify specific funding priorities was stated and for demographic data to be made available to grantees. In general forum attendees did not feel that there should be restrictions on the funding or that smaller grants should not be allowed. Many attendees were in favor of outcome reporting. The results of forum and the key informant interviews are attached along with a list of the individuals interviewed. FISCAL IMPLICATIONS: N/A. COMMISSION RECOMMENDATION AND REQUESTED ACTION: The Housing and Human Services Commission is forwarding a recommendation to the Council that the Commission review and make recommendations directly to the council for the award of the Social Services Grant funds, and that the Budget Committee approves the allocation of the Social Services Grant Program. The HHSC would utilize the Strategic Plan to evaluate the applications and make award recommendations. Every four years the Housing and Human Services Commission will update the strategic plan and its goals using community input garnered from outreach efforts which will include at least one community/grantee forum, input from the Council goals, and the most recent demographic data available at that time. SUGGESTED MOTION: N/A. ATTACHMENTS: Draft Strategic Plan for the Use of Social Service Grant Funds Appendices to the Draft Strategic Plan: • Grantee Questionnaire (Appendix A) • Grantee Questionnaire Results (Appendix B) • Questionnaire Response Chart (Appendix C) • Key Informant Interview Results (Appendix D) HHSC Minutes (linked) January 23, 2014 February 27, 2014 April 24, 2014 June 26, 2014 August 28, 2014 September 16, 2014 Page 2 of 2 pr, City of Ashland Social Service Grant Program Strategic Plan Working Draft September 2014 Introduction-Purpose of the Plan The City of Ashland is committed to supporting the agencies and organizations that work to improve the lives of its most vulnerable citizens. The Strategic Plan for the use of Social Service Grant funds is intended to provide guidance for applicants and assistance to elected and appointed officials by providing a framework for allocating resources and for tracking progress on identified goals and community priorities. The Strategic Plan will be updated at four year intervals (every two grant cycles) to be responsive to the changing demographics of the community and to the social and human service needs of the citizenry. The updates may include shifting goals and measurable objectives to more efficiently and effectively address community wide issues. History/Background The City of Ashland established the Social Service Grant Program in 1986 due to a reduction in Federal Revenue Sharing funds which had, in prior years, provided funding to the City to support the activities of non- profit and social service agencies that provided services to vulnerable Ashland Citizens. Resolution 86-35 was adopted in recognition that: "the funding of health care and social service needs is an important City function which contributes to the health and well-being of the citizens of Ashland." The Council at that time opted to maintain funding for social services with an emphasis on health care in recognition of the City's tourism based service sector economy, and felt that it was "appropriate for the City to address the problems created by this type of economy". Since that time the City of Ashland has committed a portion of the general fund in support of activities that address the health and social service needs of the Ashland community. Today's Community Snapshot The ability of working class individuals and families to afford housing and secure employment that offers compensation that is commensurate with the local cost of living, has far reaching impacts on the community. Reduced discretionary spending negatively impacts the local economy, the physical and mental wellbeing of families, and inhibits access to good nutrition and basic health care. Community diversity, vibrancy, and resilience are all impacted by an individual's or families' ability to work and reside in their community. This has been and continues to be a challenge for the Ashland community. • Population: The City of Ashland has a population of just over 20,295 people.2 • Age: The population of Ashland has seen an increase in older individuals and a decrease in younger families with children. These findings are evident in the most recent census data; which shows that approximately 83% of the population is 18 years old or older.3 The largest age group is 45-54 year olds at 13.9%4, and is echoed in the findings of various demographic reports and community assessments. 1 Philip Arnold, Former City Councilor. 2 2013 PSU Population Research Center estimate certified estimate. 3 2008-2012 ACS 5 year estimates. 4 Ibid. 1 • Income and Poverty: The median income for a household in the city was $43,305, and the median income for a family was $58,616. About 18% of the population and 11.4% of families had incomes below the poverty level, with female headed households with children under 18 and those households with children under 5 experiencing the highest rates of poverty, at 42.2% and 43.4% respectively. 4.7% of individuals 65 years old and older are below the poverty levels • Housing: The City of Ashland has over 10,000 housing units. 53% of occupied housing units are owner occupied, and 46.1% are renter occupied6. In the 2012 National Citizen's Survey completed for the City of Ashland, the City met or exceeded most national benchmarks for citizen satisfaction for all but two categories; availability of affordable quality housing and employment opportunities. Availability of affordable quality housing and variety of housing options are comparatively lower than both national benchmarks and to other University communities with populations from 10,000 to 40,000 comparisons.7 Similarly, Census data shows that 43% of homeowners with a mortgage and 54.5% of renters pay more than 35.0% of their income toward housing cost. 8 • Employment: 2013 Ashland annual average unemployment rate was 6.7%.9 Ashland School District reports that over half of the employees within Ashland live outside of the district and commute to work. to • Transportation: When workers must live elsewhere and commute into or out of the community, this has a significant impact on other aspects of the community. Community diversity, vibrancy, and resilience are all impacted by an individual's or family's ability to work and reside in their community. Similarly, household transportation costs increase and traffic and air quality are impacted. This has been and continues to be a challenge for the Ashland community. • Health: The social service grant program was originally established in part to address access to affordable health care, and while access to affordable health care continues to be a priority especially as the population ages, community feedback and demographic data has identified more pressing healthcare service needs. The 2013 Community Health Assessment identified oral/dental health and mental health, especially as it relates to depression and suicide as the most urgent unmet health care needs within the community. Further, community feedback identifies mental health disorders with co-occurring drug/alcohol addiction to be a need that is currently not adequately addressed in the Ashland community. s Ibid. 6 2008-2012 ACS 5 year estimates 7 2012 National Citizen's Survey. https://ashland.or.us/Page.asp?NavlD=15166 s Ibid 9 Guy Tauer, Regional Economist, State of Oregon Employment Department. 10 ASD 2012 Demographer's report. http://www.ashland.k]2.or.us/Files/ASD%20Demographer%27s%20Report%202012 pdf 2 Community Strengths and Challenges F 7Connunrunity Ashland residents are civic minded, and work together to solve L_Strengths community issues through a stronu commitment to community service. While access to affordable health mire continues to be an issue for many in the community, since the inception of the Social Service Grant Program many resources to address these concerns have been implemented. Ashland's community groups, faith-based groups, civic groups, non-profit organizations, social service agencies, governmental agencies, and business groups have a history of successful collaboration. Ashland's faith-based communities communicate and collaborate to problem solve and implement strategies to address community concerns. COMInunitV High need individuals and those with challenging behaviors, such as Challen those with dual diagnosis, (mental health and/or alcohol/drug addiction), physical, mental, or developmental disabilities, need more effective service options than the community currently provides. There is a deficit of supportive services for vulnerable populations such as; peoples with developmental disabilities, people with mental health issues/frail/elderly populations, veterans, at-risk youth and homeless populations. Working families and citizens earning below the median income for the Medford/Ashland area have a difficult time finding rental or ownership housing options in Ashland which are commensurate with their incomes. There is a lack of transitional housing options for families and individuals who are working toward self-sufficiency. 3 Social Services Grant Program Mission Statement To fund support services that improve the lives of Ashland residents, assist individuals and families in the community and promote personal and community safety, health, and wellbeing. I 1 Strategic Priorities: (These strategic priorities were identified through a process which included community outreach, grantee/stakeholder feedback, and key informant interviews. These priorities are not in any priority order.) • Subsidies for housing 12 • Increased transportation services 13 • Services for people with mental health issues 14 • Services for people with drug and alcohol addiction • Services for at-risk youth Implementation Strategies (which may include, but is not limited to the following) • Allocate resources to activities which address an identified strategic priority • Support innovative proposals • Support proposals that leverage community collaborations or enhance community partnerships 15 • Support proposals which have a proven capacity to carry out their stated goals/meet proposed numerical outcomes • Support proposals which are ready to precede Outcome Measurement • Request the grant recipients to list their anticipated measurable activity/program outcomes • Review and compare applicants' identified anticipated outcomes at the completion of the grant year using a standardized evaluation matrix. (Example: Number of Ashland Residents who; received housing support, participated in life skill training, received job search assistance, etc.) • The Commission will host stakeholder/applicant/community forum every four years to elicit feedback on grant making process and reporting requirements Consistent with Council priority strategic plan goal 5: "Seek opportunities to enable all citizens to meet basic needs." 12 Consistent with Council priority strategic plan goal 5.2: Support and promote, through policy, programs that make the City affordable to live in. 13 Consistent with Council priority strategic plan goal 3.4: Support RVTD in fulfilling and expanding its mission. 14 Consistent with Council priority strategic plan goal 5.1: Examine means and methods by which to improve access to mental health services in Ashland for Ashland citizens who need them. 15 Consistent with Council priority strategic plan goal 5.3: Leverage partnerships with non-profit and private entities to build social equity programming. 4 Appendix A CITY OF ^AS H LA N D M.1 The City of Ashland's Housing and Human Services Commission has been asked to undertake an evaluation of the City's Social Service Grant Program and would like your input! The Commission would like to gain feedback on the award process and solicit suggestions regarding potential changes, improvements, and goals for the program. Your time and input is greatly appreciated. A. Respondent Information I represent: An Interested Citizen (skip to section C.) A Non-Profit Service Provider An Advocacy Group A Social Service Provider A Current Grantee (skip section C) An Elected/Appointed Official B. Application Process/Presentation 1.) How would you rate the these items on a scale of 1 to 5 (1= easy and 5 = difficult) The application process 1 2 3 4 5 The Presentation Process 1 2 3 4 5 Grant reporting 1 2 3 4 5 2.) What is the application process like for you? What do you like/dislike about it? 3.) Do you find the current grant application process efficient and effective for your organization? 4.) What is the presentation process like for you? What do you like/dislike about it? 5.) Is the process of awarding grants efficient and effective for your organization? Appendix A 6.) Does the award process seem fair to you? 7.) Do you have any suggestions about how to improve the application and award process? C. Potential Grantee Questions 1.) Have you/your organization ever applied for a Social Service Grant from the City of Ashland? Yes No 2.) If you have not applied for a Social Service Grant, why not? D. Community Needs -Please rank the following needs in your community. 1=Very Low Need, 2= Low Need, 3=Moderate Need, 4=High Need, 5=Critical Need Low-Cost/affordable Housing in general 1 2 3 4 5 Services for Homeless populations 1 2 3 4 5 Services for Persons with Alcohol/drug addiction 1 2 3 4 5 Services for Persons with Developmental Disabilities 1 2 3 4 5 Services for Persons with Mental Illness 1 2 3 4 5 Services for seniors 1 2 3 4 5 Services for youth 1 2 3 4 5 Access to affordable health care 1 2 3 4 5 Legal assistance/advocacy 1 2 3 4 5 Life Skills Training 1 2 3 4 5 Other: 1 2 3 4 5 E. Unmet Needs Appendix A Please provide us with a list of your opinions on unmet service needs or gaps in your community. F. Additional Comments, Concerns or Suggestions G. Organization/Agency Contact Information (Optional) Name of Organization/Agency: Contact Person: Title: Phone: Fax: Email: Website: Address: City: State: Zip: Forum Evaluation (Optional) Your feedback will assist the Ashland Planning Department improve the quality and relevance of future public involvement efforts a) 9) R a) Please check the box for your response to each o Q statement. La-) -a tM CL o m 3 L' o L fA L cn 0 Z Q cn Z The forum covered what I expected it to cover The forum's objective were clearly stated The forum's discussion questions were interesting The level of interactivity was appropriate for this topic The forum's format allowed for participant input The duration of the forum was right for me The pace of the form was right for me Appendix B SS Grant Forum Questionaire Responses A. Respondent Information Interested Citizen 1 Advocacy Group 1 Current Grantee 1 Non-Profit Service Provider 8 Social Service Provider 1 Elected/Appointed Official B. Application Process/Presentation 1.) How would you rate the these items on a scale of 1 to S (1= easy and 5= difficult) 1 2 3 4 5 The application process 1 2 2 2 The Presentation Process l 2 1 3 Grant reporting 2 1 3 1 2.) What is the application process like for you? What do you like/dislike about it? I heard that the process was easier due to the same form as United Way It is clear straightforward & effective process. I've written many federal, state, foundation etc. grants & I greatly appreciate your process.* Application process employs "standardize" format collaborating with other funders. The two year process is very helpful in planning. Opportunity to add to specific Ashland grant would be very helpful Be able to ask questions regarding opportunities that could be added during the time period of the grant General application okay, Dislike pro r~,gic model N/A for food & friends with the City of Ashland, H&H services grant although we have been through the process with & City of Medford 3.) Do you find the current grant application process efficient and effective for your organization? Yes *Yes, Please see comments in #2 Yes, I find the current grant application straightforward in soliciting information for decision makers. Trying to obtain information fits with our current data structure Fine 4.) What is the presentation process like for you? What do you like/dislike about it? We did not receive notification of the presentation date. We were not the only ones who were not notified Positive & I felt, as an agency, valued, & a partner in Ashland Appreciate having the opportunity to do this presentation The presentation is timed but questions are helpful in clarifying issues or questions. Open discussion with non-profits leading to collaboration Open discussions are very important Fine S.) Is the process of awarding grants efficient and effective for your organization? yes Absolutely yes yes, it is open to applicants to hear rational for decisions. yes yes Fine 6.) Does the award process seem fair to you? yes yes yes yes yes yes Appendix B 7.) Do you have any suggestions about how to improve the application and award process? Not at this time Not at this time data Publish clear objectives C. Potential Grantee Questions 1.) Have youlyour organization ever applied for a Social Service Grant from the City of Ashland? Yes 6 No 2 2.) If you have not applied for a social service grant why not? We need to do so to provide better integration The stipulation that the applicant organization be a non-profit. Food & friends is tax exempt under RVCOG A Community Needs -Please rank the following needs in your community. 1I= Very Low Need, 2= Low Need, 3= rate Need, 4=High. Need, 5= Critical Need 1 2 3 4 S Low-Cost/affordable Housing in general 1 3 5 Services for Homeless populations 2 4 3 Services for Persons with Alcohol/drug addiction 2 7 Services for Persons with Developmental Disabilities 2 2 5 Services for Persons with Mental Illness 1 1 4 3 Services for seniors 5 4 Services for youth 2 6 Access to affordable health care 3 2 2 2 Legal assistance/advocacy 5 4 1 Life Skills Training 4 5 1 1- Other: Transport Assistance for needy people facing an economic crisis-rent, utilities, Rx, etc. E. Unmet Needs Please provide us with a list of your opinions on unmet service needs or gaps in your community. I think we have a population of people with autisum and other disabilities that is growing Transportation-low-income housing The low income people who qualify for assistance is large. Could more financial assistance be given here. Mental Health and transportation Mental Health and insurance help Mental Health Services Providing meals and a safety net service to homebound seniors who are at risk due to isolation F. Additional Comments, Concerns or Suggestions It's been great to network with other agencies Please consider including eligibility for tax exempt human services organizations G. Organization/Agency Contact Information (Optional) St. Vincent de paul-I am just a plain vanilla volunteer. Not involved in the application process, but use ASSG funds to help mainly rent and utilities for home visit clients. Community Works-Barbara Johnson-Director of victim services St. Vincent de paul-Charlotte Dorsey Volunteer Center for non-profit legal services-Debra Lee-ED On-Track-Robin Stroh- Ashland DHS office Community Health Center-William North-CEO St. Vincent De Paul-Rich Hansen Food & Friends Senior meals & meals on wheels/RVCOG-Evelyn Kinsella-Program manager Appendix C Community Needs Ranking Life Skills Training Legal assistance/advocacy Access to affordable health care Services for Youth Services for Seniors ■ Services for Persons with Mental Illness Services for Persons with Developmental Disabilities Services for Persons with Alcohol/Drug Addiction Services for Homeless Populations Low-Cost/Affordalbe Housing in General 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Appendix D 2014 HHSC-Key Informant Interview Results List of Key Informants Vickie Aldous, (as a private citizen) Sandra Slatterly Linda Chase, Outreach Worker @ Easter Seals Patty Michels, Principal @ Walker Elementary Christine McCollom, Principal @ Belview Elementary Samuel Bogdanove, Director of Student Services @ Ashland School District. Deneice Zeve, Ashland School Board Member/ Attorney Kylan M de Vries, Faculty @ SOU James Westrick, Ashland School Board member Jeanne Stallman, Executive Director, Outreach & Engagement @ SOU Alma Rose Alvarez, Social Justice House Adviser & Professor of English & Philosophy @ SOU Linda Wilcox Young, Professor of Economics @ SOU: Jim Shames, Medical Director of Jackson Co. Public Health Unknown x 2 What do you see as the greatest community need? Need Times Selected Low-Cost/affordable Housing in general 8 Services for Persons with Mental Illness 5 Services for youth 3 Transportation 3 Services for Persons with Alcohol/drug addiction 3 Services for Seniors 2 Life Skills Training 2 Services for Homeless populations 1 Legal assistance/advocacy 1 Food 1 Access to affordable health care 0 Services for Persons with Develop Disabilities 0 Appendix D Other needs mentioned: Workforce housing for low and middle income families Pet-Friendly affordable rental housing Community activities for teens Greatest Needs and Unmet Services: - Integrated mental health and addiction treatment services. - Transitional housing for homeless people using the Housing First Model - Family advocates helping families navigate assistance programs, mental health, medical and addiction treatment programs. - More local pediatric medical practitioners for children with high/ specialized needs. -To get drug dealers off the plaza and out of Lithia Park - Adolescents (age 14-19) need day treatment -Post-high school services for teens/families to connect with higher education or employment -Parent to parent support groups for students with disabilities/mental illness -Life/Legal guidance for AHS students -Transportation for seniors to health care, activities ect. -Support seniors to stay in their own homes. -Help support the caretakers of the mentally ill. -Need more construction of low-income housing located in mixed income neighborhoods. -Increased public transportation, especially in light of the lack of affordable housinc, causing people, SOU student particularly, to have to commute. -Public Health Extension in Ashland for Alcohol & Drug, Mental Health services, WIC, Immunizations, etc. -Pick up the cigarette butts Comments/Thoughts paraphrased - There is a lack of regional and state services for mental illness, drug and alcohol addiction. -Housing should be encouraged by supporting a healthy economy with well paying jobs to provide a higher standard of living. -Recent changes at the VA will only be a band-aid (14,000 out patients at White City) -Students 1-9th grade need a place to "hang" so they are not at parks unsupervised. - The community has a large number of seniors who want activities to stay involved and active. Appendix D -The Maslow project is a great support for homeless children and families! -Concern about the affect of Ashland's declining school enrollment and the need for affordable housing for families to stabilize the situation. -People, particularly diverse populations, are priced out of Ashland. -Suggest a free RVTD system would increase ridership to improve transportation situation. -Use railroad tracks for a commuter line. -Pick up the cigarette butts -The people on the street should not be allowed to hang at the chamber courtyard and the visitor areas. Perhaps they could clean up the debris for a meal. CITY OF ASHLAND Council Communication November 18, 2014, Business Meeting Acceptance of FY 2013-2014 Comprehensive Annual Financial Report FROM: Lee Tuneberg, Finance Director, lee.tuneberg@ashland.or.us SUMMARY The Audit Commission has met with staff and auditor Pauly, Rogers and Company, P.C. to review and accept the annual audit of the City of Ashland for the fiscal year ended June 30, 2014. The commission's report and recommendation to accept the Comprehensive Annual Financial Report (CAFR) can be found in the report on page 23 and the auditor opinion on page 27. The auditor has given an unqualified opinion again this year. Council may accept the commission's report and the annual report as presented, recommend modifications as discussed or defer acceptance (take no action) awaiting further information or clarification. BACKGROUND AND POLICY IMPLICATIONS: The CAFR is prepared each year as part of the state-required audit by an independent, certified and municipally licensed auditor. In Ashland, the auditor reports to the Audit Commission established by the Council. The commission receives the auditor opinion, management letter and annual financial reports (including the Ashland Parks Commission Component Unit Financial Report) prepared by staff. When satisfied with the reports and related information, the commission forwards the report to Council with a recommendation to accept. The auditor gave an unqualified opinion again this year. Excerpts are as follows: Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Ashland as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the basic financial statements as listed in the table of contents. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Ashland, as of June 30, 2014, and the respective changes in financial position and budgetary comparisons for the general fund and federal grant fund, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Page 1 of 4 IAi, CITY OF ASHLAND Staff Overview: The CAFR conforms to generally accepted accounting principles (GAAP) and the latest applicable Governmental Accounting Standards Board Statements (GASBS), auditing standards and Oregon Budget Law. The report also complies with U. S. Office of Management and Budget (OMB) Circular A-133 requirements since the City accepted enough federal financial assistance in FY 2013-2014 to require specific audit actions and disclosures. This is accomplished by including a Schedule of Findings and Questioned Costs addressing audit results, financial statement findings, federal award findings and questioned costs. The auditors identified one condition worthy of reporting and it is detailed on Page 173. They include the need for: • Better internal controls for staff access to transactions in the Municipal Court. Staff partially resolved this comment last year but a change in staffing prevented improvements from continuing. Since July the added steps have been taken to remove this comment for FY 2014-2015. No questionable costs for federal financial assistance programs were reported by the auditor. In this financial report the Parks' activities as a component unit are reported as a "blended" unit rather than a "discretely presented" unit as required by governmental accounting standards. Thus, Parks funds are named and included separately and blended with city fund information rather than only as summarized information in the city-wide reports. This change is explained in the Management Discussion and Analysis section and the Notes to the financial reports. The City and Parks are prepared to submit both annual reports to the Government Finance Officers Association for review and suggestions for improvement again this year. Financial Overview: The City is responsible for completeness and accuracy of the annual report. The auditor reports are included in the document and presented on their letterhead. These reports attest to the City's compliance with Oregon Budget Law and federal reporting requirements. The annual report includes a section on pages 29 through 37 called Management's Discussion and Analysis (MD&A) that is intended to provide the reader with a basic understanding of the financial condition and change over the year audited. Please read the MD&A and Notes section to get a general understanding of the financial information provided. Unless otherwise indicated, financial references relate to the City and do not incorporate Ashland Parks & Recreation information. From an overview perspective, the City's financial condition reduced from a restated $121,932,000 to $117,363,000 - a decrease of $4,569,000 or -3.7 percent. This change included many variables with the primary reductions being in receivables, net assets and an increase in short term payables at June 30. Positive variances were a 1.9 percent increase in operating cash and 1.7 percent less in long-tem claims payable (debt). City-wide total assets are down $3.78 million which includes: 1. $561,000 more in cash & investments (a plus) Page 2 of 4 1WWW, CITY OF ASHLAND 2. $9,000 more in restricted cash & investments (a plus) 3. $2,070,000 less in receivables (a minus) 4. $141,000 more in inventories (a plus) 5. $119,000 less in deferred revenue (a minus) 6. $4.6 million less in fixed assets (a minus) 7. $2.3 million less in accumulated depreciation (a plus). City-wide current payables (liabilities) are $1.4 million (16.1 more than the prior year, primarily due to more accrued interest payable consistent with the outstanding debt service due in the coming year and more capital improvement work done late in the fiscal year and payable at the end of June. Long term payables are $648,000 less than in 2013 due to debt payments being greater than borrowing done for the year. The net result of changes in Assets and Liabilities city-wide is the $4.6 million decrease in Total Net Position as mentioned above. In general, the City's operational and capital expenses partially offset increased revenues from rates and amounts held in reserve. The above variations contributed to a change in categorization of Net Position where Unrestricted decreased by $3.5 million, Restricted increased by $572,000 and invested in capital assets decreased by $1.65 million. Key places to look within the document are: Pages Information 9-15 Transmittal letter from staff 23 Report of Audit Commission accepting the audit 27-28 Independent Auditor's Report (an unqualified opinion) 29-37 Management's Discussion & Analysis 41-50 Basic Financial Statements 52-75 Notes to General Purpose Financial Statements 80-159 Supplementary reports, schedules and statistical tables 162-166 Oregon required auditor comments and disclosures 167-173 Government Standards Compliance Reports including Federal Assistance, OMB Circular A-133 compliance, and other internal compliance disclosures COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: The report represents a review of City records and there is no direct financial implication from accepting the report. The commission provided input on presentations and disclosures but no material changes in financial condition were necessary. Page 3 of 4 ~r, CITY OF -AS H LAN D STAFF RECOMMENDATION AND REQUESTED ACTION: The Audit Commission recommends acceptance of the Comprehensive Annual Financial Report for FY 2013-2014 and staff concurs. SUGGESTED MOTION: I move to accept the Audit Commission Report and the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2014, as presented. ATTACHMENTS: FY 2013-2014 Comprehensive Annual Financial Report Page 4 of 4 Ir, CITY F 7-xSHLAND COMPREHENSIVE ANNUAL FINANCIAL REPORT for the year ended June 30, 2014 Prepared by the Administrative Services Department Lee Tuneberg, Administrative Services and Finance Director 2014 table of contents TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal ..................................................................................................................................................9 City Council Goals ...................................................................................................................................................11 Certificate of Achievement for Excellence in Financial Reporting ..........................................................................17 Elected City Officials ................................................................................................................................................18 Appointed City Officials ...........................................................................................................................................19 Organization Chart ..................................................................................................................................................20 Map of City of Ashland ............................................................................................................................................21 Municipal Audit Commission Report ......................................................................................................................23 FINANCIAL SECTION Independent Auditors Report ..................................................................................................................................27 Management's Discussion and Analysis .................................................................................................................29 BASIC FINANCIAL STATEMENTS Government - Wide Financial Statements: Statement of Net Position ........................................................................................................................................41 Statement of Activities .............................................................................................................................................42 Fund Financial Statements: Balance Sheet - Governmental Funds ....................................................................................................................44 Reconciliation of Balance Sheet of Governmental Funds to Statement of Net Position .........................................45 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds .............................46 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities ......................................................................................................47 Statement of Net Position - Proprietary Funds ........................................................................................................48 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds .........................................49 Statement of Cash Flows - Proprietary Funds ........................................................................................................50 Notes to Basic Financial Statements .......................................................................................................................52 REQUIRED SUPPLEMENTARY INFORMATION Notes to Required Supplementary Information: Schedule of Funding Progress ................................................................................................................................80 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund 81 Schedule of Revenues, Expenditures, Changes in Fund Balance - Budget and Actual - Street Fund .................82 Schedule of Revenues, Expenditures, Changes in Fund Balance-Parks and Recreation ...................................83 Supplementary Information: Combining Balance Sheet - All Non-Major Funds ...................................................................................................86 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Non-Major Funds 87 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: CDBG Fund .............................................................................................................................................................88 Airport Fund .............................................................................................................................................................89 Capital Improvements Fund ....................................................................................................................................90 Parks and Capital Improvement Fund .....................................................................................................................91 Debt Service Fund ...................................................................................................................................................92 Cemetery Trust Fund ...............................................................................................................................................93 Reserve Fund ..........................................................................................................................................................94 comprehensive annual financial report - Pg 3 2014 table of contents Page Schedule of Revenues, Expenditures and Changes in Net Position - Budget and Actual: Water Fund 95 Wastewater Fund 96 Electric Fund 97 Telecommunications Fund 98 Consolidating Balance Sheet - Internal Service Fund 99 Consolidating Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 100 Combining Internal Service Fund Statement of Cash Flows 101 Schedule of Revenues, Expenditures and Changes in Net Position - Budget and Actual: Central Services Fund 102 Health Benefits Fund 103 Equipment Fund 104 Insurance Services Fund 105 Capital Assets Used in the Operation of Governmental Funds by Source 106 Schedule of Assets Used in the Operation of Governmental Funds by Function/Activity 107 Schedule of Bond Principal and Interest Transactions 108 Schedule of Property Tax Transactions Collected and Uncollected for the City 110 Schedule of Property Tax Transactions and Balances of Taxes Uncollected for the City 111 Schedule of Receipts, Disbursements and Balances-Elected Officials 112 STATISTICAL SECTION - TOTAL REPORTING ENTITY (UNAUDITED) Financial Trends: Table of Contents 115 Statement of Net Position - Governmental Activities 116 Statement of Net Position - Business Type Activities 118 Changes in Net Position - Governmental Activities 120 Changes in Net Position - Business Type Activities 122 Fund Balances - Governmental Funds 124 Changes in Fund Balances - Governmental Funds 126 Fund Balance Comparison 128 Revenue Capacity: Assessed and Estimated Actual Value of Taxable Property 130 Property Tax Rates- Direct and Overlapping Governments 131 Property Value and New Construction History 132 Food and Beverage Tax Revenues by Fund 133 Principal Property Tax Payers 134 General Governmental Tax Revenues by Source 136 Property Tax Levies and Collections 137 Electric Utility Usage 138 Debt Capacity: Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 140 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 142 Pledged Revenue Coverage - Water Fund 143 Ratios of Outstanding Debt by Type 145 Legal Debt Margin 146 Computation of Legal Debt Margin 148 Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds 149 Pg 4 - city of ashland 2014 table of contents Page Economic and Demographic Information: Principal Employers ...............................................................................................................................................150 Demographic Statistics ..........................................................................................................................................151 Operating Information: Schedule of Major Insurance in Force ...................................................................................................................152 City Employee by Function/Program ......................................................................................................................153 Operating Indicators by Function/Program ............................................................................................................154 Capital Assets and Infrastructure Statistics by Function/Program .........................................................................155 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Minimum Standards for Audits of Oregon Municipal Corporations .......................................................................162 Report of Independent Auditors ............................................................................................................................163 GOVERNMENT AUDITING STANDARD COMPLIANCE REPORTS Report of Independent Auditors ............................................................................................................................167 Schedule of Federal Financial ..............................................................................................................................171 Summary of Auditors Results ................................................................................................................................172 Financial Statement Findings ................................................................................................................................173 Federal Award Findings and Question Costs ........................................................................................................173 Notes to the Schedule of Expenditures of Federal Awards ..................................................................................173 comprehensive annual financial report - Pg 5 2014 comprehensive annual financial report F 7111, i.. Pg 6 - city of ashland 2014 introductory section INTRODUCTORY SECTION comprehensive annual financial report - Pg 7 2014 introductory section Pg 8 - city of ashland 2014 introductory section CITY F ASHLAND November 18, 2014 RE: City of Ashland Comprehensive Annual Financial Report To the Citizens of the City of Ashland: We are pleased to submit the Comprehensive Annual Financial Report of the City of Ashland for the fiscal year ended June 30, 2014, as mandated by state statutes. These statutes require that the City of Ashland issue an annual report on its financial position and activity, and that this report be audited by an independent firm of certified public accountants licensed by the State of Oregon to conduct municipal audits. This report must be published within six months of the end of each fiscal year. Management holds responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures. To the best of our knowledge and belief, the enclosed data is accurate in all material aspects and is reported in a manner designed to fairly present the financial position and the results of operations of the various funds and component unit of the City of Ashland. All disclosures necessary to enable the reader to gain an understand- ing of the City of Ashland's activities have been included. Based upon their audit, the independent auditor concluded that there was a reasonable basis for rendering an unqualified opinion and that the City's financial statements for the year ended June 30, 2014, are pre- sented in conformity with Generally Accepted Accounting Principles (GAAP). The independent auditor's re- port is presented as the first component of the financial section of this report. It is followed by a Management Discussion and Analysis report on pages 5 through 11. The reader is encouraged to review these pages for a better understanding of the City, its financial condition, and its activities for the year. The financial reporting entity includes all the funds of the City of Ashland, as well as those of the component unit, the Parks and Recreation Commission. Component units are legally autonomous entities for which the primary government is financially accountable. The City provides a full range of services including police pro- tection, fire protection, building inspection, planning services, economic development, social services, senior program, ambulance, electric, internet access, water, streets, storm drain, wastewater treatment, airport, cemetery, band, parks and recreation activities. The Parks and Recreation Commission activities are reported as a blended component unit. The blended component unit information is included within the government-wide financial statements emphasizing that it is operated autonomously and accounted for separately from the primary government but significantly relies upon the oversight, policies and financial resources of the primary government. GOVERNMENTAL STRUCTURE, ECONOMIC CONDITIONS AND OUTLOOK The City, incorporated in 1874, is located in the southwest part of the state and currently has a land area of 6.52 square miles with a population of 20,366. The government has all powers necessary or convenient for the conduct of its municipal affairs, including the power to levy a property tax on both real and personal prop- erty located within its boundaries. The City also has the power, by state statute, to extend its corporate limits by annexation, which is done periodically when deemed appropriate by the City Council. The City operates under the council-administrator form of government. Policymaking and legislative authority are vested in the Mayor and City Council. The governing Mayor and Council are responsible for, among comprehensive annual financial report - Pg 9 2014 introductory section other things, passing ordinances, adopting the budget, appointing committees, and hiring the City Adminis- trator and the City Attorney. The City Council consists of a mayor and six-member council. The Mayor, who presides at the council meetings, is elected at-large for a four-year term. Six council members are elected at- large for four-year staggered terms with three council members elected every two years. Other elected offi- cials are the City Recorder/Treasurer, Municipal Judge, and the five-member Parks and Recreation Commis- sion. The City Administrator is charged with general oversight of all operational and management functions, with the exception of the Parks Commission. The City Administrator recommends the appointment or dismissal of department heads (Fire Chief, Police Chief, Public Works Director, Community Development Director, Ad- ministrative Services/Finance Director, Electric/Information Technology Director). The Mayor, with confirma- tion of the City Council, appoints the City Administrator, the City Attorney, department heads, and members of citizen boards and commissions, with the exception of the Budget Committee, which is appointed by the full Council. The City Administrator is responsible for carrying out the policies and ordinances of the City Council and overseeing the day-to-day operations of the City. In addition to the help they receive from their appointed staff and employees, 21 advisory boards and com- missions and various ad hoc committees assist the City Council. Over 150 Ashland citizens serve on these boards and commissions and make a valuable contribution to the City of Ashland. The City of Ashland's economic base depends primarily on higher education and tourism. In addition, the U.S. Fish and Wildlife National Forensics Laboratory is located in Ashland. It is the only crime lab in the world dedicated entirely to wildlife and serves both the national and international communities. Ashland's downtown business district has a relatively high occupancy rate with a variety of shops, restaurants, hotels, commercial businesses, and financial institutions. The state has a major economic presence in the area in Southern Oregon University (SOU), which is located on a 175 acre campus within the city limits approxi- mately one mile from the city center. According to the 2008-2012 American Communities Survey, Ashland has an employed work force of an esti- mated 10,201 people with an average annual pay of $33,143 and representing over 10.3 percent of Jackson County's labor force. A return of some parts of the economy is appearing with early reports on better ticket sales, local tax revenues and university enrollments. Examples are the Transient Occupancy Tax and Food and Beverage Tax revenues (for all business activities as presented in tables in the Statistical section). Transient Occupancy Tax revenue increased 4.1 percent while Food & Beverage tax revenue increased 2.8 percent. It is not uncommon to have local taxes, especially those relating to tourism, to "lead" the tax reve- nues from other tax revenues relating to construction. In 2013-2014, the City issued building permits totaling just under $20.5 million in total estimated valuation, an approximate 40% increase over the previous year. The valuation of residential development was down approximately 13% over the prior year as there was a slight reduction in the number of dwelling units built or remodeled in 2013-14. The valuation of commercial development, including new construction and tenant improvements, increased by approximately 148% over FY 2012-13. Although the number of commercial permits remained relatively constant year over year, the notable increase in annual valuation reflects the de- velopment of higher value individual buildings. The Ashland Chamber of Commerce publication, Living and Doing Business Guide 2014 provides a host of current information relevant to the city's economy. Based on data from the Oregon Economic development Department, the guide reports that Ashland's consumer expenditures were over $482 million in 2013, with near $100 million each for housing and transportation. Additionally, the median price of a home was $325,000, a nearly 9.1 % increase from 2012 and slightly above that of 2003. The guide also noted that over 56 percent of Ashland's residents have a bachelor's or higher degree, contributing to a highly educated workforce and an engaged and knowledgeable citizenry. Pg 10 - city of ashiand 2014 introductory section Much of this can be attributed to tourism generated by cultural attractions, the largest of which is the Oregon Shakespeare Festival Association (OSFA), a nationally renowned theater company presenting 780 perform- ances over a season from February through October, to an estimated attendance of over 400,000. OSFA employs approximately 435 (85 are actors) and has nearly 500 volunteers. Southern Oregon University re- ports over 6,100 students, over 750 faculty and administration members and over $125 million in annual revenue. The Ashland Independent Film Festival, Ski Ashland, local galleries, museums and many more also play key roles in the economic impacts identified above. INITIATIVES During most of FY 2013-2014 the City operated under goals set by Council in February 2013 for the follow- ing 12 to 24 months to continue Ashland's history as a community that focuses on sustaining itself and its people. To us, sustainability means using, developing and protecting resources at a rate and in a manner that enables people to meet their current needs and also provides that future generations can meet their own needs. In FY 2013-2014 City Council updated their goals as listed below. They are also available in the current budget document or on the city website at: - 1 w CITY COUNCIL GOALS 2014 PUBLIC SAFETY GOAL Public safety and other city agencies, along with the community, collaborate effectively to ensure security for all and improve overall livability. Objectives: • Increase safety and security downtown • Review the Emergency Preparedness Plan to include food security and other shortages of necessities • Mitigate fire hazards in the urban interface • Reduce risks of fire in the city via weed abatement and Firewise landscaping and building practices • Improve public communication and community partnerships re: public safety policies and best practices • Provide modern, fully equipped facilities and equipment for city public safety functions MUNICIPAL INFRASTRUCTURE GOAL Collaborate with the community to ensure safe, cost-effective, and sustainable public services, facilities and utilities to meet the urgent, immediate and future needs of Ashland. Objectives: • Examine the anticipated impacts of climate change on city infrastructure • Evaluate all city infrastructure regarding planning, management, and financial resources • Implement the conservation plan for water and complete the 10-year plan for electric • Promote conservation as a long-term strategy to protect the environment and public utility needs and implement a conservation program to reduce water and electricity usage by 5 to 10% over the next three years. • Maintain existing infrastructure to meet regulatory requirements and minimize life-cycle costs comprehensive annual financial report - Pg 11 2014 introductory section • Deliver timely life-cycle capital improvement projects • Maintain and improve infrastructure that enhances the economic vitality of the community • Develop a fee/rate structure that encourages conservation and pays the bills COMMUNITY QUALITY OF LIFE GOAL Anticipate and identify opportunities to provide for the physical, social, economic, and environmental health of the community. Objectives: • Minimize the incidence and impacts of homelessness • Provide opportunities for those who are struggling to thrive and not just survive in Ashland • Increase the number of internet-based businesses by 50% in two years • Investigate land-use and funding strategies that provide affordable and workforce housing units • Support and assist foundational relationships with community partners • Establish a permanent jobs commission • Implement Level I implementation strategies of the Economic Development Plan as approved by Council • Review the Downtown Plan including zoning of areas around downtown and create a roadmap for the future planning of downtown • Encourage private development of affordable housing options • Analyze the impacts of increased preservation of historic buildings in Ashland ORGANIZATION AND GOVERNANCE GOAL Provide high quality and effective delivery of the full spectrum of city service and governance in a transpar- ent, accessible and fiscally responsible manner. Objectives: • Examine and improve communication tools used to communicate with the public • Improve budget and financial reports to be clear, realistic, and effective • Review and evaluate current commissions for their mission and feasibility • Improve communication between commissions and Council • Ensure the efficient and effective use of technology to enhance customer satisfaction • Ensure the availability of front-line personnel for customer contact during business hours ASHLAND PARKS AND RECREATION GOAL (Submitted to and accepted by Ashland City Council) Maintain and expand park, recreational, and educational opportunities; provide high quality, efficient and safe services with positive experiences for guests and other participants while maintaining community partici- pation in the decision-making processes and protecting the environment. Objectives: • Evaluate current conditions of facilities and identify deficiencies that need correction. • Provide neighborhood park facilities within'/4-mile of every home. • Provide opportunities for community members to interact and improve health and social well-being for our community. • Contribute to the economic viability of our community. • Preserve natural areas, protect and enhance our environment. • Incorporate community input into planning processes for parks and recreation programs, activities and facilities. • Ensure continued safety within the parks and recreation system. • Support education related to environmental issues. • Provide ongoing evaluation of recreation programs to ensure current and future relevance. Pg 12 - city of ashiand 2014 introductory section Important steps or accomplishments in the above areas during FY 2013-14 include: 1. Transitioned to a biennial budget process for coming years to take advantage of better planning opportunities in the "off" year, a more comprehensive planning approach and time savings. 2. Retired significant portions of the prior year long-term liabilities. 3. Transitioned to a self-insured employee health benefits program. 4. Adjusted rates for water, wastewater and electric to comply with financing goals identified by master plan studies. 5. Granted over $125,000 for safety net services and $678,000 to encourage economic and cultural activities consistent with the city's recently completed Economic and Development strategy. 6. Remodeled the Plaza and Calle Guanajuato to make them more open and inviting to the public. FINANCIAL INFORMATION Management is responsible for establishing and maintaining an internal control structure designed to ensure that assets of the City are protected from loss or theft and to ensure that adequate accounting data is com- piled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable assurances that: (1) the cost of a control should not exceed the benefits likely to be derived, and (2) management must use its best judgment to value the costs and benefits as it relates to cost of internal control. The City's system of internal accounting controls is designed to provide reasonable, although not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition. As a frequent recipient of federal, state and local financial assistance, the City must also have an adequate internal control structure in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by management and staff. Tests were made of the government's internal control structure and of its compliance with applicable laws and regulations, including those related to federal financial assistance programs. Although this testing was not sufficient to support an opinion on the City's internal control system or its compliance with laws and regu- lation related to non-major federal financial assistance programs, the audit for the year ended June 30, 2014 , disclosed no material internal control weaknesses or material violations of laws and regulations. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriations budget resolution approved by the City Council. All funds are included in the annual appropriated budget. The annual 2013-14 budget was pre- pared on a fund basis with department, program, and line item detail. Accounting principles generally accepted in the United States of America require that management provide a discussion and analysis to accompany the financial statements. This letter of transmittal compliments man- agement's discussion and analysis, and should be read in conjunction with it. The City's Management's Dis- cussion and Analysis can be found on pages 5-11, immediately following the independent auditors report. Significant Impacts. The City's investment policy objectives are to preserve capital, maintain liquidity and diversification, and to attain a market rate of return throughout budgetary and economic cycles. Investments are valued at fair value, as required by GASBS 31. Changes in the economy and investment market are prompting a review of the City's policy. As of June 30, 2014, the fair market value of the investment in the Local Government Investment Pool was 100 percent of the pool shares, as reported in Oregon Short Term Fund audited financial statements. The City provides life and health coverage to its employees and their dependants. The City pays 95 percent of premiums for employees, with management and all five bargaining units paying the remaining five per- cent. Other optional supplemental insurances are available to employees and are paid entirely by the indi- comprehensive annual financial report - Pg 13 2014 introductory section viduals electing to carry them. The rising cost of employee benefits, especially health care and retirement, prompted the City to change providers in FY 2010-2011, to hold costs flat and provide a tracking system to support cost containment options in the future. During 2012-2013 the City laid the foundation to become "self insured" for employee health benefits and that was established beginning July 1, 2013. An actuarial review of other post employment benefit programs was performed during the year, and the re- sults from the study are incorporated within this report on pages 70 through 73, in the Notes to Basic Finan- cial Statements section. OTHER INFORMATION Tax Limitation. Article IX of the Oregon Constitution contains various limitations of property taxes levied by local jurisdictions. The Constitution calls for taxes imposed upon property to be segregated into two catego- ries: one to fund the public school system and community colleges and the other for local governments. The citizens of the State of Oregon approved a property tax limitation, commonly referred to as Measure 5, in November 1990. This constitutional amendment divides property taxes into an education category and an "all other" local government category. The education category property taxes were limited to $15.00 per thousand of real market value (RMV) ini- tially, and have been lowered to $5.00 per thousand. The local government category is limited to $10.00 per thousand. The 2012-2013 local net general government tax rate in the City of Ashland, all agencies, was $7.16, well within the limitation. Voter approved general obligation debt is not subject to the $10.00 limitation. In November 1996, the citizens of the State of Oregon approved another property tax limitation, commonly referred to as Measure 47. Prior to enactment, this measure was repealed and replaced by Measure 50, by special election on May 20, 1997. Measure 50 changed the property tax limitation on levies, rates assess- ment, and equalization, after the 1996-1997 fiscal year. Specifically, Measure 50 rolled the assessed value of each unit of property for the tax year 1997-98 back to its 1995-96 "real market value" less ten percent. The measure limited increases in assessed value in future years to three percent per year. The measure also establishes a new permanent tax rate for each taxing district. Ashland's permanent rate for the operating lev- ies is set at $4.2865, although the City chose to levy only $4.1972 of this amount in fiscal year 2013-2014. The measure also provides for voter approved "Local Option Levies" for levies outside the limits. In May 1997, Ashland voters approved the three-year Ashland Youth Activities Levy as a Local Option Levy at a rate of $0.97. The levy was renewed in May 2000 and again in May 2003, at a maximum rate of $1.38. The 2003 renewal ended in fiscal year 2008. The City of Ashland is still receiving delinquent payments for Ash- land Youth Activity Levy from Jackson County. A Local Option Levy of $0.21 was approved by the voters to provide extended library services in Ashland beginning in FY 2007-2008. It was levied in FY 2008-2009 at $0.13, and in FY 2009-2010 through FY 2011- 2013 at $0.1921 per $1,000 of valuation. The levy was renewed on the November 2012 ballot for another four years at $0.21 per $1,000. The City levied $0.1921 for library service in 2013-2014. Awards. The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for fiscal year ended June 30, 2013. This was the twenty-first year the City had submitted its report for review. In order to be awarded a Certificate of Achievement, a government must publish an eas- ily readable and efficiently organized comprehensive annual financial report. This report satisfied both gener- ally accepted accounting principles and applicable legal requirements. This award is valid for a period of one year. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements, and we intend to submit it to the GFOA to determine its eligibility for another certificate. In addition, the City of Ashland received the GFOA's Award for Distinguished Budget Presentation for its bi- ennial 2013-2014 budget. In order to qualify for the Distinguished Budget Presentation Award, the City's budget document was judged to be proficient in several categories, including policy documentation, as an Pg 14 - city of ashiand 2014 introductory section operational guide, as a financial plan, and as a communication device. Acknowledgments. The timely preparation of the Comprehensive Annual Financial Report was made possi- ble by the dedicated service of the entire staff of the City of Ashland Administrative Services/Finance Depart- ment, all other departments and the Ashland Parks and Recreation Commission staff. Each member has our sincere appreciation for the contribution made, with special thanks to the Accounting Division and Finance Administration staff for their dedicated efforts in maintaining the accounting systems, audit preparation and report writing. Sincerely, J Dave Kanner Lee Tuneberg City Administrator Administrative Services/Finance Director comprehensive annual financial report - Pg 15 2014 introductory section F T'I'll i.. Pg 16 - city of ashland 2014 introductory section Government Finance Officers Association Certificate Achievement for Excellence i Financial. Reporting Presented to City of Ashland Oregon For its Comprehensive Annual Financial Report for the Fiscal Year Ended. June 3, 2013 .Lxc, Ii, , Dir /C1 ) comprehensive annual financial report - Pg 17 2014 introductory section CITY OF ASHLAND ELECTED CITY OFFICIALS as of June 30, 2014 Name Position Term Expires John Stromberg Mayor December 2016 252 Ridge Road Ashland OR 97520 Greg Lemhouse Council Member December 2016 2850 Wedgewood Ashland OR 97520 Pam Marsh Council Member December 2014 696 Siskiyou Blvd Ashland OR 97520 Michael Morris Council Member December 2014 720 S. Mountain Avenue Ashland OR 97520 Rich Rosenthal Council Member December 2016 1228 Rose Lane Ashland OR 97520 Dennis Slattery Council Member December 2014 1405 Pinecrest Terrace Ashland OR 97520 Carol Voisin Council Member December 2016 908 Fox Street Ashland OR 97520 Barbara Christensen Recorder Treasurer December 2014 759 Willow Street Ashland OR 97520 Pam B. Turner Municipal Judge December 2016 PO Box 1299 Ashland OR 97520 P9 18 - city of ashiand 2014 introductory section CITY OF ASHLAND APPOINTED CITY OFFICIALS as of June 30, 2014 Name Position Dave Kanner City Administrator PO Box 831 Ashland, OR 97520 Darlow "Lee" Tuneberg Administrative Services/Finance Director/ 327 Starflower Lane Acting Assistant City Administrator Ashland, OR 97520 David H. Lohman City Attorney 1327 Reddy Avenue Medford, OR 97504 Mike Faught Public Works Director 3685 Coleman Creek Road Medford, OR 97501 Mark Holden Information Technology Director/Electric Director PO Box 786 Ashland, OR 97520 William Molnar Community Development Director 155 Hillcrest Street Ashland, OR 97520 Terry Holderness Police Chief 50 Pine Street Ashland, OR 97520 John Karns Fire Chief 440 Wiley Street Ashland, OR 97520 Don Robertson Parks and Recreation Director 3786 Windgate (up to and including June 30, 2014) Medford OR 97504 Michael Black Parks and Recreation Director 711 NW Amelia Drive (appointed August 18, 2014) Grants Pass, OR 97526 comprehensive annual financial report - Pg 19 2014 introductory section City of Ashland 254.55 FTE Adopted C Citizens of Ashllaind ;Population -20,366 City Recorder Muinicipal Judge Elected - 4 Year Term f:Eliected - 4 Year Term (2.0 ed in Administration) rd City Council (6) ) Elected - 4 Year Terms &dew sion Mayor (1) eint Appointed Director IBoards & Coimmissions City Adiministrator City Attorney e Stan diing Commissions (17) Appointed Appointed Ad Hoc (4) (Included in Admlinistratioin) (lincluded in Administration) & Citizen Committees Administrative Services Public Works Administration Information Technology Appointed Director Appointed Director (13.15 IF'T'E) Appointed Director (16.25 FTE) (60.05 F'TIE) (Shared) (14.50 FT'E) Police Community Development Electric Appointed Director Appointed Director Appointed Director (36.30 FTE) (12.60 FTIE) (Shared) (20.75 FTE) Fire & Rescue Appointed Director (34.75 FTE) Pg 20 - city of ashiand 2014 introductory section CIT'E'' F AS-3 H LAN A Vicinity Map 2014 OREGON e s i n I 'I I iG a I I I I i comprehensive annual financial report - Pg 21 2014 introductory section F T'I'll i.. Pg 22 - city of ashland 2014 introductory section October 27, 2014 The City Council and The Ashland Parks and Recreation Commission City of Ashland, Oregon The Municipal Audit Commission was established by the City Council to perform certain tasks relating to the annual audit. The Ashland Parks and Recreation Commission, a component unit of the City of Ashland, has delegated similar responsibilities to the Audit Commission for their annual audit process. In fulfilling its responsibilities, the Commission participates in selecting the City's auditor on a regular basis. The Commission interviews qualified, independent certified public accountants and discusses the overall scope and specific plans for the audit. The Commission also recommends which municipally-certified individual or firm is to be engaged as the City's auditor by the City Council At the conclusion of the annual audit, the Commission meets with the City's auditor to discuss the results of their audit and their evaluation of the City and Parks financial reporting. The Commission also discusses the financial accounting and reporting processes with the City's auditor, including the preparation of the financial statements for the City and Parks Commission, safeguarding of assets and other resources against unauthorized acquisition, use or disposition, and other required accounting issues. After receiving the annual reports and related documentation from the auditor and staff, evaluating the information, and considering the potential for changes, the Commission makes recommendations to both elected bodies on acceptance of the respective annual reports and changes deemed appropriate through the process. Based upon the above, we accept the 2013-2014 Comprehensive Annual Financial Report (CAFR) and the related audit reports of the independent certified public accountants for the City of Ashland and the Ashland Parks and Recreation Commission and recommend that the respective CAFR and auditor's reports be accepted by the Council and the Commission. Respectfully submitted, The Municipal Audit Commission ~ Roberta Stebbins,' Thomas Hepford, Member at Large Member at Large Q Mary Co Budge iais& Carol Voisin, Barbara Christensen, Represe ing Bud t Committee City Council Liaison/Member City Recorder/Treasurer Ex-Officio Member Administrative Services Department Tel: 541.488.5300 D.L. Tuneberg, Director Fax: 541.552.2059 20 East Main Street TTY: 800735.2900 Ashland, Oregon 97520 www.ashland.orus comprehensive annual financial report - Pg 23 2014 comprehensive annual financial report F 7111, i.. Pg 24 - city of ashland 2014 financial section FINANCIAL SECTION comprehensive annual financial report - Pg 25 2014 financial section F 7111, i.. Pg 26 - city of ashland 2014 financial section ~ PAULY,KO ER', AND CO.. P.C i 2, A' '.w 11 l I ,r.~.^ax vk (503) t -2632 ♦ (5013) 6 84-7523 FA,, r,M* NU: , r ,pauiyro ersandeocpas.coni October 17, 2014 To the Mayor and City Council City of Ashland INDEPENDENT AUDITORS' REPORT Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Ashland as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of the Ashland Parks and Recreation District (a component unit) were not audited in accordance with Gov- ernment Auditing Standards. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circum- stances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Ashland, as of June 30, 2014, and the respective changes in financial position and budgetary comparisons for the general fund and federal grant fund, thereof for the year then ended in accordance with account- ing principles generally accepted in the United States of America. Emphasis of Matter The City adopted the provisions of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for the year ended June 30, 2014. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and comprehensive annual financial report - Pg 27 2014 financial section the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate op- erational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary comparison schedules presented as Required Supplementary Information, as listed in the table of contents, have been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, and in our opinion are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic finan- cial statements. The supplementary and other information, as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. The schedule of expenditures of federal expenditures is pre- sented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements The supplementary information, as listed in the table of contents and the schedule of expenditures of federal expenditures are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such informa- tion directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic fi- nancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information, as listed in the table of contents and the sched- ule of federal expenditures, is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory, statistical and the other information, as listed in the table of contents have not been subjected to the audit- ing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or pro- vide any assurance on them= Reports on Other Legal and Regulatory Requirements In accordance with Government Auditing Standards, we have also issued our report dated October 17, 2014 on our consideration of the internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in consider- ing internal control over financial reporting and compliance. In accordance with Minimum Standards for Audits of Oregon Municipal Corporations, we have issued our report dated Oc- tober 17, 2014, on our consideration of compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. Kenneth Allen, CPA PAULY, ROGERS AND CO., P.C. Pg 28 - city of ashland 2014 financial section MANAGEMENT'S DISCUSSION AND ANALYSIS City of Ashland management offers this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2014, to readers of the financial statements. Certain information has been provided for the Ashland Parks and Recreation Commission (APRC), which qualifies as a blended component unit of the City. In previous years the APRC was reported in the Comprehensive Annual Financial Report as a discretely pre- sented component unit. Due to changes in funding it is now required to show it as a blended component unit. Please read Management's Discussion and Analysis (MD&A) in conjunction with the transmittal letter included in the introductory section of this report and the City's Financial Statements, which follow. Overview of the Report The City's annual financial report consists of several sections. Taken together they provide a comprehensive fi- nancial look at the City. The components of the report include the following: • Management's Discussion and Analysis. This section of the report provides financial highlights and over- views. • Basic Financial Statements. Includes Statements of Net Position, Statement of Activities, Fund Financial Statements and the Notes of the Financial Statements. Statements of Net Position and Activities focus on an entity-wide presentation using the accrual basis of accounting. They are designed to be more corporate-like in that all activities are consolidated into a total for the City. o The Statement of Net Position focuses on resources available for future operations. In simple terms, this statement presents a snapshot view of the assets the community owns, the liabilities it owes and the net difference. o The Statement of Activities focuses on gross and net costs of city programs and the extent to which such programs rely upon general tax and other revenues. This statement summarizes and simplifies the user's analysis to determine the extent to which programs are self supporting and/or subsidized by general revenues. o Fund Financial Statements focus separately on major governmental funds and proprietary funds. Governmental fund statements follow the more traditional presentation of financial statements. The City's major governmental funds are presented in their own column and the remaining funds are com- bined into a column titled "Other Governmental Funds". o The Notes to Basic Financial Statements provide additional disclosures required by governmental accounting standards and provide information to assist the reader in understanding the City's financial condition. o Required Supplementary Information contains budgetary comparison statements for the major gov- ernmental fund types, presented in a biennium format. • Supplementary Information. Readers desiring additional information can find it in the Supplementary Informa- tion section of this report. Components within this section include: o Major Fund Budgetary Schedules o Special Revenues Funds (non major) o Debt Service Funds (non major) o Capital Projects Fund (non major) o Enterprise Fund (non major) o Internal Service Funds o Schedule of Property Tax Transactions o Schedule of Receipts, Disbursements and Balances by Elected Officials. • Statistical Section. This section includes trend information and demographics. • Audit Comments and Disclosures Required by State Regulations. Supplemental communication on the City's compliance and internal controls as required by Oregon statues and the Single Audit Act. comprehensive annual financial report - Pg 29 2014 financial section Financial Highlights The City's annual financial report in the past included a discretely presented component unit - The Ashland Parks and Recreation Commission (APRC). Through the budget process (The 2013-2015 Biennium) the primary reve- nue source for APRC was changed from property taxes to a payment for services from the City of Ashland's Gen- eral Fund. This funding change now qualifies APRC as a blended component unit at June 30, 2014. It is now re- classified as a special revenue fund when combined with the primary government per the Governmental Account- ing Standard Board. With this change, comparable data for both 2013 and 2014 fiscal years have been provided here in Table 1. and 2. to help the reader. Table 1 City of Ashland's Net Position Reconciliation (in thousands of dollars) Total Governmental Percentage Activities Change City Parks Total City Parks Total 2014 2014 2014 2013 2013 2013 2014-2013 Current Assets: Cash and cash equivalents $ 18,341 $ 1,194 $ 19,535 $ 17,586 $ 2,416 $ 20,002 -2.3% Receivables, net 3,373 99 3,472 3,689 91 3,780 -8.1% Inventories - supplies and materials 73 - 73 75 - 75 -2.7% Deferred charges - - - - Internal balances (1,393) (1,393) (1,123) (1,123) n/a Restricted assets: - - Cash and cash equivalents 1,150 1,150 1,141 - 1,141 0.8% Total current assets: 21,544 1,293 22,837 21,368 2,507 23,875 -4.3% Non-current Assets: Capital assets 102,202 17,946 120,148 101,291 16,487 117,778 2.0% Less accumulated depreciation (50,562) (7,467) (58,029) (48,437) (6,960) (55,397) 4.8% Total non-current assets 51,640 10,479 62,119 52,854 9,527 62,381 -0.4% Total assets 73,184 11,772 84,956 74,222 12,034 86,256 -1.5% Current Liabilities: Accounts payable and accrued liabilities 6,762 632 7,394 5,403 612 6,015 22.9% Deferred revenue - - - - - - n/a Total current liabilities 6,762 632 7,394 5,403 612 6,015 22.9% Long-term liabilities: Claims payable 18,360 - 18,360 19,790 - 19,790 -7.2% Total liabilities 25,122 632 25,754 25,193 612 25,805 -0.2% Net Position: Invested in capital assets 33,281 10,479 43,760 33,064 9,527 42,591 2.7% Restricted 4,936 - 4,936 4,544 - 4,544 8.6% Unrestricted 9,845 661 10,506 11,421 1,895 13,316 -21.1% Total net position $ 48,062 $ 11,140 $ 59,202 $ 49,029 $ 11,422 $ 60,451 -2.1% Pg 30 - city of ashland 2014 financial section Table 2 Changes in City of Ashland's Net Position Reconciliation (in thousands of dollars) Total Governmental Percentage Activities Change City Parks Total City Parks Total 2014 2014 2014 2013 2013 2013 2014-2013 Program revenues: Charges for services $ 5,529 $ 1,578 $ 7,107 $ 9,868 $ 932 $ 10,800 -34.2% Operating grants and contributions 433 433 898 - 898 -51.8% Capital grants and contributions - - - - - - General revenues: Property taxes 10,216 10,216 5,783 4,082 9,865 3.6% Other taxes 7,357 7,357 6,996 - 6,996 5.2% Interest 179 7 186 176 68 244 -23.8% Other 864 4,013 4,877 346 16 362 1247.2% Total revenues 24,578 5,598 30,176 24,067 5,098 29,165 3.5% Program expenses: General government 4,922 - 4,922 7,270 - 7,270 -32.3% Public safety 14,677 14,677 10,352 10,352 41.8% Highways and streets 5,420 - 5,420 3,081 - 3,081 75.9% Parks and Recreation 5,881 5,881 - 6,095 6,095 N/A Interest on long-term debt 435 435 1,618 - 1,618 -73.1% Water - - - - - Wastewater Electric Telecommunications - - - - - Total expenses 25,454 5,881 31,335 22,321 6,095 28,416 10.3% Increase (decrease) in net position before transfers and disposals (876) (283) (1,159) 1,749 (997) 752 -254.1% Interfund transfer (90) - (90) - - - Increase (decrease) in net positions (966) (283) (1,249) 1,749 (997) 752 -266.1% Net position - June 30, 2013 49,029 11,422 60,451 47,280 12,419 59,699 1.3% Net position - June 30, 2014 $ 48,063 $ 11,139 $ 59,202 $ 49,029 $ 11,422 $ 60,451 -2.1% comprehensive annual financial report - Pg 31 2014 financial section Net Position. The City's total net position is $117,363,462 at June 30, 2014. This is $4.5 million less than the previous year, equivalent to a 3.7% decrease. The decrease in the total net position is due to spending of prior year bond monies on projects, disposals of fixed assets and being self insurance. Table A City of Ashland's Net Position (in thousands of dollars) Total Governmental Business-type Percentage Activities Activities Total Change 2014 2013 2014 2013 2014 2013 2014-2013 Current Assets: Cash and cash equivalents $ 19,535 $ 20,002 $ 10,760 $ 9,732 $ 30,295 $ 29,734 1.9% Receivables, net 3,472 3,780 3,493 5,255 6,965 9,035 -22.9% Inventories - supplies and materials 73 75 1,024 881 1,097 956 14.7% Deferred charges - - 488 607 488 607 -19.6% Internal balances (1,393) (1,123) 1,393 1,123 - - n/a Restricted assets: - - Cash and cash equivalents 1,150 1,141 - - 1,150 1,141 0.8% Total current assets: 22,837 23,875 17,158 17,598 39,995 41,473 -3.6% Non-current Assets: Capital assets 120,148 117,778 111,880 118,831 232,028 236,609 -1.9% Less accumulated depreciation (58,029) (55,397) (48,811) (53,721) (106,840) (109,118) -2.1% Total non-current assets 62,119 62,381 63,069 65,110 125,188 127,491 -1.8% Total assets 84,956 86,256 80,227 82,708 165,183 168,964 -2.2% Current Liabilities: Accounts payable and accrued liabilities 7,394 6,015 2,963 2,906 10,357 8,921 16.1% Deferred revenue - - - - - - n/a Total current liabilities 7,394 6,015 2,963 2,906 10,357 8,921 16.1% Long-term liabilities: Claims payable 18,360 19,790 19,103 18,321 37,463 38,111 -1.7% Total liabilities 25,754 25,805 22,066 21,227 47,820 47,032 1.7% Net Position: Invested in capital assets 43,760 42,591 43,966 46,789 87,726 89,380 -1.9% Restricted 4,936 4,544 4,661 4,481 9,597 9,025 6.3% Unrestricted 10,506 13,316 9,534 10,211 20,040 23,527 -14.8% Total net position $ 59,202 $ 60,451 $ 58,161 $ 61,481 $ 117,363 $ 121,932 -3.7% Pg 32 - city of ashland 2014 financial section Changes in Net Position. Overall the City's net position decreased by 3.7%. This is mainly due to fewer pro- jects completed that would reduce expenses. In the prior year large project costs reduced over all expenses. Table B Changes in City of Ashland's Net Position (in thousands of dollars) Total Governmental Business-type Percentage Activities Activities Total Change 2014 2013 2014 2013 2014 2013 2014-2013 Program revenues: Charges for services $ 7,107 $ 10,800 $ 26,035 $ 24,671 $ 33,142 $ 35,471 -6.6% Operating grants and contributions 433 898 268 2,119 701 3,017 -76.8% Capital grants and contributions - - - - - - General revenues: - Property taxes 10,216 9,865 - - 10,216 9,865 3.6% Other taxes 7,357 6,996 1,892 1,840 9,249 8,836 4.7% Interest 186 244 156 166 342 410 -16.6% Other 4,877 362 723 786 5,600 1,148 387.8% Total revenues 30,176 29,165 29,074 29,582 59,250 58,747 0.9% Program expenses: General government 4,922 7,270 - - 4,922 7,270 -32.3% Public safety 14,677 10,352 14,677 10,352 41.8% Highways and streets 5,420 3,081 5,420 3,081 75.9% Parks and Recreation 5,881 6,095 5,881 6,095 N/A Interest on long-term debt 435 1,618 - - 435 1,618 -73.1% Water - - 6,852 7,582 6,852 7,582 -9.6% Wastewater 7,475 3,846 7,475 3,846 94.4% Electric 15,826 13,614 15,826 13,614 16.2% Telecommunications - - 2,241 3,234 2,241 3,234 -30.7% Total expenses 31,335 28,416 32,394 28,276 63,729 56,692 12.4% Increase (decrease) in net position before transfers and disposals (1,159) 752 (3,320) 1,306 (4,479) 2,055 -318.0% Interfund transfer (90) - - (90) - Increase (decrease) in net positions (1,249) 752 (3,320) 1,306 (4,569) 2,055 -322.3% Net position - June 30, 2013 60,451 59,699 61,481 60,175 121,932 119,877 1.7% Net position - June 30, 2014 $ 59,202 $ 60,451 $ 58,161 $ 61,481 $ 117,363 $ 121,932 -3.7% comprehensive annual financial report - Pg 33 2014 financial section Financial Analysis. For the Governmental Activities on a Generally Accepted Accounting Principles (GAAP) ba- sis, the largest changes are due to more operating costs (less offset by capitalization costs) in the current year. Also, the large increase in General revenues: Other is due to the payment for Parks Services. The Business-type Activities increase is also due to less capitalization of costs. These costs reduced the program expense. • Governmental Funds. The City has three major governmental funds; General Fund, Street Fund and now Parks and Recreation Fund. o The General Fund (pg 81) ended the year with revenues higher than expenditures. This was due to most departments spending less than fifty percent of it in the first year of this biennium. This year shows the division of Parks, this is to show the payment from the City to Parks and Recreation Com- mission. Also note that on a GAAP Basis the Reserve Fund must roll into the General Fund at this point. o The Street Fund (pg 82) also has a higher ending fund balance than budgeted. Most of the under spending in this fund is from timing of improvements that were budgeted but were not completed. This fund will struggle as the infrastructure ages and is showing need for replacement. o The Parks and Recreation Fund (pg 83) is new to the financials this year. The fund balance is down significantly to align with current ending fund balance policy. Most of the divisions are at the fifty per- cent mark of the biennium budget. o The Non-Major funds are staying on target. The most significant change is the addition of Parks and Recreations Commission's Capital Improvements Fund into the City's financials. o The Reserve Fund was established by Resolution #2010-18. This fund must be rolled into the Gen- eral Fund on a GAAP basis until a stabilization policy is adopted by Council. This year's ending fund balance decreased due to transfers. One to the general fund for a homeless shelter and the other one for computer upgrades to Information Technology in the Central Service Fund. This fund also loaned money to the Health Benefits Fund. • Business-type Funds. The City has four enterprise funds; Water Fund, Wastewater Fund, Electric Fund and Telecommunications Fund. o The Water Fund (pg 95) started the Talent Ashland Phoenix Pipeline Intertie project (TAP). Part of the funding for this project was a 1 % interest loan from the State of Oregon. The other funding source was from a Bond that was issued in fiscal year 2013. The TAP project is expected to be completed in fiscal year 2015. The Forest division spent the majority of the $350,000 in the first half of the bien- nium budget. o The Wastewater Fund (pg 96) spent less than half of the budget. This was expected as more of the projects are anticipated for the fiscal year 2015. o Shown on page 97, the Electric Fund is trending at almost 50% of budgeted revenue. Although this fund spent more than revenue, this fund has been spending less than anticipated at this point in time. This fund has been able to work on small capital projects without incurring long term debt. However, due to aging infrastructure this may not continue to be the case. o The Telecommunications Fund (pg 98) did end the year with expenditures higher than revenue. This fund struggles with being able to fund capital projects. • Internal Service Funds. The City has four internal service funds: Central Service, Insurance Services Health Benefits and Equipment Funds. o The Central Service Fund tries to keep expenditures to a minimum. However, the City Recorder de- partment is experiencing very high banking charges due to the new utility billing software and fre- quency of credit card use. o The Insurance Service Fund ended the year with a positive net change. However, this fund will con- tinue to struggle with post employment benefit costs. o Health Benefits Fund is new this year. The first year of being self insured has put the expense at 59% of the biennium budget. o The Equipment Fund continues to stay on track based on future equipment needs. Pg 34 - city of ashland 2014 financial section • General Fund Budgetary Highlights. The City's final budget differs from the original budget in that it con- tains one supplemental appropriation approved during the first fiscal year of the biennium. Below were au- thorized changes for the General Fund: o General Fund - Police Department: Recognizes grant money of $30,000 for the Violence Against Women Program. o General Fund - Police Department: Recognizes grant money to be paid to Ashland for participation in Southern Oregon Regional High Tech Crimes Task Force in the amount of $42,000. o General Fund - Fire Department: Recognized grant money for three grants in total of $72,836 for new radios, training and replacement of out of service rescue rope and hardware. o General Fund - Fire Department: Recognized $8,100 for workshops and FEMA expenses. There was one transfer request in the general fund in the first fiscal year of the Biennium moving appropriations from Administrative Services - Miscellaneous to Administration - Tourism and Parking for better tracking of the restricted money. Capital Assets and Debt Administration 0 Capital Assets. As of June 30, 2014, the City had $125 million in capital assets. This table includes Parks and Recreation Commission's fixed assets of $10.5 million. In the Governmental Activities, the police station remodel and addition was completed reducing the construction in progress. In the Busi- ness-type Activities, long term water projects at treatment plant were completed. Table C City of Ashland's Capital Assets (in thousands dollars) Governmental Governmental Activities Activities City Parks City Parks Total 2014 2014 2013 2013 2014 2013 Land $ 12,466 $ - $ 12,466 $ - $ 12,466 $ 12,466 Buildings and improvements 22,390 13,350 22,390 13,186 35,740 35,576 Equipment 14,724 1,929 13,169 1,495 16,653 14,664 Infrastructure 51,660 2,009 49,725 1,796 53,669 51,521 Construction in progress 961 658 3,541 10 1,619 3,551 Totals at historical cost 102,201 17,946 101,291 16,487 120,147 117,778 Total accumulated depreciation 50,561 7,467 48,437 6,960 58,028 55,397 Net capital assets $ 51,640 $ 10,479 $ 52,854 $ 9,527 $ 62,119 $ 62,381 comprehensive annual financial report - Pg 35 2014 financial section o Debt Administration. At end of year, the City has $37.5 million in debt outstanding. The City did incur new debts of $2,6 million for new construction projects within the Water Fund and Wastewater Fund. These two new debts are with the state of Oregon at 1 % interest. All other changes to debt were payments reducing the principal outstanding. Table D City of Ashland's General Obligation Long Term Debt (in thousands dollars) Total Governmental Business-type Percentage Activities Activities Total Change 2014 2013 2014 2013 2014 2013 2014-2013 Bonds payable $ 17,820 $ 19,140 $ 16,054 $ 17,490 $ 33,874 $ 36,630 -7.52% Notes payable 539 650 3,048 830 3,587 1,480 142.36% Total bonds and notes $ 18,359 $ 19,790 $ 19,102 $ 18,320 $ 37,461 $ 38,110 -1.70% Economic Factors and Next Year's Budget and Rates o The City of Ashland is half way through its first biennium budget. Included in the 2013-2015 biennium budget are some large changes from past budgeting processes. o This budget does not record the primary revenue source in the Parks Fund as property taxes and instead re- cords that revenue as a payment for services from the General Fund. As such, the entirety of the City's gen- eral property tax levy is recorded in the General Fund, which reduces the amount needed for an unappropri- ated fund balance in the Parks Fund, thus making those otherwise unappropriated dollars available for pro- grams and services throughout the City. o The operating budget benefits tremendously from the conversion to a self-funded health benefits program on July 1, 2013. This conversion allowed the City to hold its health insurance costs flat during the biennium, rather than increasing them by an estimated 10% in each year. In addition, this budget changes the way health insurance costs are allocated to the departments from an "actual cost of the employee" methodology to a "per full time employee" methodology. As a result, some departments saw their health benefits charges de- crease the first year. Although personal services costs city-wide were projected to increase by about 4.7% in the first year of the biennium and another 2.6% over that in the second year, those increases would have been much higher if not for the conversion to a self-insurance plan. All other contractual and compliance obli- gations were budgeted as required. The City of Ashland budget also has the following rates budgeted in the last half of the biennium: o Property Taxes. This budget includes no change in the levy of the city's permanent tax rate. The maximum the city is permitted to levy is approximately $4.29 per $1,000 of assessed valuation. This budget levies about $4.20 per $1,000, with that entire levy going to the General Fund. The city can assess up to $.21 per $1,000 for a voter-approved serial levy that supports Ashland Library operations, however in year one of this budget the city levied only $.19 per thousand, as was the case in FY 2013. No levy for the library is needed in year two of the biennium due to the voter approval of a library district. The operating property taxes, excluding prior year tax collections, are projected to increase by 4% in each year of the biennium. o Enterprise Fund revenues. This budget assumed a 5.3% rate increase for the Electric Utility effective Octo- ber 1, 2013. It was not done until January 2014. This budget is balanced with a 10% increase in both water and wastewater rates. These rate increases have been anticipated to cover the cost of the significant capital improvements called for in the master plans for the enterprises, as well as basic operations and maintenance. The combined impact on a residential customer in 2014-15 is estimated at less than $6.00 per month depend- P9 36 - city of ashland 2014 financial section ing on water use. This budget also includes cost of service studies in the Water and Street Funds ($50,000 and $30,000, respectively) in order to meet the Council objectives to "Evaluate all city infrastructure regarding planning, management, and financial resources" and to "Develop a fee/rate structure that encourages conser- vation and pays the bills." o Other Utilities. This budget included increases of 3% in the Transportation Utility Fee and 3% in the Storm Water Utility Fee for fall 2013. The approved increases were 2.57% for both. The Storm Water Division needs this adjustment to cover operational costs. The estimated impact on the average residential customer of these combined increases is $0.36 per month. Financial Contact: This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City's Administrative Ser- vices Department at 20 East Main, Ashland, Oregon, 97520, (541) 488-5300. comprehensive annual financial report - Pg 37 2014 financial section Pg 38 - city of ashland 2014 basic financial statements BASIC FINANCIAL STATEMENTS comprehensive annual financial report - Pg 39 2014 basic financial statements Pg 40 - city of ashland 2014 basic financial statements CITY OF ASHLAND, OREGON STATEMENT OF NET POSITION For the year ending June 30, 2014 Primary Government Governmental Business-type Activities Activities Total Assets: Cash and cash equivalents $ 19,534,572 $ 10,760,319 $ 30,294,891 Receivables (net of allowance for uncollectibles) 3,471,767 3,493,316 6,965,083 Inventories 73,094 1,024,111 1,097,205 Deferred charges - 488,135 488,135 Internal balances (1,392,782) 1,392,782 - Restricted assets: Temporarily restricted: Cash and cash equivalents 1,149,616 - 1,149,616 Capital assets: Land 12,466,348 1,880,637 14,346,985 Buildings 35,739,298 22,089,254 57,828,552 Machinery and equipment 16,653,654 1,169,663 17,823,317 Infrastructure 53,668,418 83,671,768 137,340,186 Construction in progress 1,620,133 3,069,144 4,689,277 Accumulated depreciation (58,028,592) (48,811,228) (106,839,820) Total assets 84,955,526 80,227,901 165,183,427 Liabilities: Accounts payable and other current liabilities 7,116,594 2,865,087 9,981,681 Accrued interest payable 155,091 98,772 253,863 Non-current liabilities: Due within one year 1,555,932 1,885,841 3,441,773 Due in more than one year 16,925,776 17,216,872 34,142,648 Total liabilities 25,753,393 22,066,572 47,819,965 Net Position: Net investment in capital assets 43,637,551 43,966,525 87,604,076 Restricted for: Asset forfeiture 28,897 - 28,897 Transient Occupancy Tax - tourism 116,131 - 116,131 Library levy 142,497 142,497 System development 2,924,188 3,786,696 6,710,884 The Community Development Block Grant restrictior 33,801 - 33,801 Perpetual care: non-expendable 896,572 - 896,572 Debt service 794,695 875,490 1,670,185 Unrestricted 10,627,801 9,532,618 20,160,419 Total Net Position $ 59,202,133 $ 58,161,329 $ 117,363,462 The accompanying notes are an integral part of the basic financial statements. comprehensive annual financial report - Pg 41 2014 basic financial statements CITY OF ASHLAND, OREGON STATEMENT OF ACTIVITIES For the year ended June 30, 2014 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government: Governmental Activities: General government $ 4,921,674 $ 2,022,814 $ 252,742 $ Public safety 14,677,285 1,412,785 180,422 Highways and streets 5,420,004 2,093,705 - Parks and recreation 5,881,480 1,578,123 Interest on long-term debt 435,790 - Total governmental activities 31,336,233 7,107,427 433,164 Business-type Activities: Water 6,852,085 6,182,662 89,747 Wastewater 7,475,207 4,251,800 - Electric 15,825,968 13,671,443 178,002 Telecommunications 2,240,951 1,929,101 - Total business-type activities 32,394,211 26,035,006 267,749 Total primary government $ 63,730,444 $ 33,142,433 $ 700,913 $ General Revenues: Property taxes Utility users tax Users taxes Unrestricted interest earnings Miscellaneous Transfers Total general revenues and transfers Change in net position Net posiition - beginning, Restated Net position - ending Pg 42 - city of ashland 2014 basic financial statements CITY OF ASHLAND, OREGON STATEMENT OF ACTIVITIES For the year ended June 30, 2014 (continued) Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business-type Activities Activities Total $ (2,646,118) $ $ (2,646,118) (13,084,078) (13,084,078) (3,326,299) (3,326,299) (4,303,357) (4,303,357) (435,790) (435,790) (23,795,642) (23,795,642) (579,676) (579,676) (3,223,407) (3,223,407) (1,976,523) (1,976,523) (311,850) (311,850) (6,091,456) (6,091,456) $ (23,795,642) $ (6,091,456) $ (29,887,098) 10,216,080 10,216,080 4,572,352 - 4,572,352 2,784,842 1,891,730 4,676,572 186,146 156,492 342,638 4,877,216 723,106 5,600,322 (90,000) - (90,000) 22,546,636 2,771,328 25,317,964 (1,249,006) (3,320,128) (4,569,134) 60,451,139 61,481,457 121,932,596 $ 59,202,133 $ 58,161,329 $ 117,363,462 The accompanying notes are an integral part of the basic financial statements comprehensive annual financial report - Pg 43 2014 basic financial statements CITY OF ASHLAND, OREGON BALANCE SHEET GOVERNMENTALFUNDS For the year ended June 30, 2014 Other Total Governmental Governmental General Street Parks Funds Funds ASSETS Assets: Cash and cash equivalents $ 4,049,176 $ 4,723,987 $ 868,944 $ 3,191,093 $ 12,833,200 Receivables (net of allowance for uncollectibles) 1,895,096 869,977 74,847 411,680 3,251,600 Due from other funds 500,000 - - - 500,000 Cash - restricted - - 1,149,616 1,149,616 Total assets 6,444,212 5,593,964 943,191 4,/52,389 11,134,416 LIABILITIES AND EQUITY Liabilities: Accounts payable 971,605 150,522 360,397 131,927 1,614,451 Unearned revenue 294,406 384,859 - 162,503 841,768 Interfund Loans Payable - - 364,795 364,795 Liabilities payable from restricted assets - - - - - Total liabilities 1,266,011 535,381 360,397 659,225 2,821,014 Deferred Inflows of Resources Unavaliable revenue - Property Taxes 622,285 - 31,752 654,037 Unavaliable revenue - Special Assesments 320,960 - 320,960 Total Deferred Inflows of Resources 622,285 320,960 31,752 974,997 Fund Balances: Restricted for: Asset forfeiture 28,897 - - 28,897 Transient Occupancy Tax - tourism 116,131 116,131 Library levy 142,497 - - 142,497 System development charges - 2,415,789 508,399 2,924,188 The Community Development Block Grant restriction - 33,801 33,801 Perpetual care - 896,572 896,572 Debt commitment 794,695 794,695 Committed for: - General fund 536,535 - - - 536,535 Special revenue funds - 2,321,834 80,488 2,402,322 Parks activites 583,394 332,482 915,876 Capital projects funds - - - 1,414,975 1,414,975 Unassigned 3,731,916 - - - 3,731,916 Total fund balances 4,555,976 4,737,623 583,394 4,061,412 13,938,405 Total liabilities and fund balances $ 6,444,272 $ 5,593,964 $ 943,791 $ 4,752,389 $ 17,734,416 The accompanying notes are an integral part of the basic financial statements. Pg 44 - city of ashland 2014 basic financial statements CITY OF ASHLAND, OREGON RECONCILIATION OF BALANCE SHEET OF GOVERNMENTAL FUNDS TO STATEMENT OF NET POSITION For year ended June 30, 2014 Explanation of certain differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position. Fund Balances $ 13,938,405 The cost of capital assets (land, buildings, improvements, machinery and equipment, infrastructure, and construction in progress) is reported as an expenditure in governmental funds. The Statement of Net Position includes those capital assets among the assets of the City as a whole. Net capital assets 58,786,643 Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position. Long-term liabilities (18,359,474) Accrued interest on liabilities (155,091) Accrued compensated absences are not due and payable in the current period and, therefore, are not reported in the funds. Other Post Employment Benefits implicit liability (707,146) Accrued vacation and sick leave (881,908) Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. Deferred revenue 1,816,765 Internal Service Funds are used by the City to account for the fleet operations, support services, and administrative and insurance services that are provided to the other departments and agencies on a cost reimbursement basis. The assets and liabilities of the Internal Service Funds are included in governmental activities in the Statement of Net Position. Internal Service Fund net position 4,763,939 Total net position $ 59,202,133 The accompanying notes are an integral part of the basic financial statements. comprehensive annual financial report - Pg 45 2014 basic financial statements CITY OF ASHLAND, OREGON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTALFUNDS For the year ended June 30, 2014 Other General Street Parks Governmental Total Primary Fund Fund Fund Funds Government Revenues: Taxes $ 17,805,058 $ 57,273 $ $ 988,538 $ 18,850,869 Fees, licenses and permits 667,416 - - 667,416 Intergovernmental 703,160 1,166,800 977,376 2,847,336 Charges for services 1,491,564 2,000,061 4,813,323 2,388,204 10,693,152 System development charges - 93,644 - 48,941 142,585 Assessments - 59,483 - 59,483 Fines and forfeitures 183,732 - - - 183,732 Interest on investments 33,919 23,207 5,841 23,058 86,025 Miscellaneous 80,867 233,209 34,862 61,651 410,589 Total revenues 20,965,716 3,633,677 4,854,026 4,487,768 33,941,187 Expenditures: General government 7,626,596 - - 1,754,959 9,381,555 Public safety 13,102,433 - - 13,102,433 Highways and streets - 1,974,219 - - 1,974,219 Parks and Recreation - 5,452,065 1,402,249 6,854,314 Debt service - - 1,842,374 1,842,374 Capital outlay - 1,338,957 297,450 1,636,407 Total expenditures 20,729,029 3,313,176 5,452,065 5,297,032 34,791,302 Excess (Deficiency) of revenues over (under) expenditures 236,687 320,501 (598,039) (809,264) (850,115) Other financing sources (uses) Transfer in 104,529 - 646,398 750,927 Transfers out (190,500) (602,000) (48,427) (840,927) Total other financing sources (uses) (85,971) (602,000) 597,971 (90,000) Net change in fund balance 150,716 320,501 (1,200,039) (211,293) (940,115) Fund balance, July 1, 2013 4,405,260 4,417,122 1,783,433 41272,705 14,878,520 Fund balance, June 30, 2014 $ 4,555,976 $ 4,737,623 $ 583,394 $ 4,061,412 $ 13,938,405 The accompanying notes are an integral part of the basic financial statements. Pg 46 - city of ashland 2014 basic financial statements CITY OF ASHLAND, OREGON RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO STATEMENT OF ACTIVITIES For the year ended June 30, 2014 Explanation of certain differences between the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance and the Government-wide Statement of Activities. Excess of revenues over expenditures $ (940,115) Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreiation in the current period. Capital outlay expenditures capitalized 919,358 Depreciation expense (2,671,602) Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for transations that are not normally paid with expendable available financial resources. However, in the Statement of Activities (which is presented on the accrual basis of accounting) expenses and liabilities are reported, regardless of when financial resources are available. This adjustment combines the net changes in liability balances. Compensated absences (28,199) Other Post Employment Benefits implicit libility (82,612) Accrued interest (24,194) General obligation bonds and notes payable 1,430,778 Revenues in the Statement of Activities that do not provide current financial resourses are not reported as revenues in the governmental funds. Property taxes (51,704) Special assessments (61,387) Other (27,099) Internal Service Funds are used by the City to account for the fleet operations and support/administrative/insurance services that are provided to other departments and agencies on a cost reimbursement basis. The revenues and expenses of the internal service funds are included in governmental activites in the Statement of Activities. Internal Service Fund change in net position 287,770 Change in net position $ (1,249,006) The accompanying notes are an integral part of the basic financial statements. comprehensive annual financial report - Pg 47 2014 basic financial statements CITY OF ASHLAND, OREGON STATEMENT OF NET POSITION PROPRIETARY FUNDS For the year ended 30 June, 2014 Governmental Tele- Activities Water Wastewater Electric communications Internal Service Fund Fund Fund Fund Total Funds ASSETS Current assets: Cash and investments $ 5,510,019 $ 3,690,500 $ 1,245,927 $ 313,873 $ 10,760,319 $ 6,701,372 Interest and accounts receivable, net 1,485,635 768,096 921,790 172,678 3,348,199 149,330 Notes and contracts receivable - 145,117 - 145,117 70,837 Interfund receivable - - - - - 364,795 Inventories 374,756 14,837 613,313 21,205 1,024,111 73,094 Deferred charges 89,494 - - - 89,494 - Total current assets 7,459,904 4,473,433 2,926,147 507,756 15,367,240 7,359,428 Non Current Capital assets: 34,865,601 52,655,427 14,993,926 9,365,512 111,880,466 11,782,293 Accumulated depreciation (15,685,422) (16,422,637) (7,787,485) (8,915,684) (48,811,228) (8,449,678) Capital assets, net 19,180,179 36,232,790 7,206,441 449,828 63,069,238 3,332,615 Non-current assets: Deferred costs (net of amortization) - - - 398,641 398,641 - Total non-current assets 19,180,179 36,232,790 7,206,441 848,469 63,467,879 3,332,615 Total assets 26,640,083 40,706,223 10,132,588 1,356,225 78,835,119 10,692,043 LIABILITIES AND NET POSITION Current liabilities: Accounts payable 1,012,226 176,249 604,321 12,735 1,805,531 945,143 Accrued salaries, vacation and payroll taxes 297,291 159,041 287,270 92,914 836,516 715,337 Accrued interest payable 27,239 71,434 99 - 98,772 - Interfund payable - - - - 500,000 Other liabilities - - 223,041 223,041 2,374,842 Notes/bonds payable, current portion 596,389 1,267,738 21,714 - 1,885,841 - Total current liabilities 1,933,145 1,674,462 1,136,445 105,649 4,849,701 4,535,322 Long-term liabilities: Notes payable - Revenue bonds payable, net 979,630 1,645,280 152,000 - 2,776,910 General obligation bonds payable, net 4,099,473 10,340,489 - 14,439,962 Total long-term liabilities 5,079,103 11,985,769 152,000 17,216,872 - Total liabilities 7,012,248 13,660,231 1,288,445 105,649 22,066,573 4,535,322 Net Position: Net Position (deficit): Invested in capital assets, net of related debt 13,504,687 22,979,283 7,032,727 449,828 43,966,525 3,332,615 Restricted for system development 2,078,886 1,707,810 - - 3,786,696 - Restricted for debt service - 875,490 - - 875,490 - Unrestricted 4,044,262 1,483,409 1,811,416 800,748 8,139,835 2,824,106 Total Net Position 19,627,835 27,045,992 8,844,143 1,250,576 56,768,546 6,156,721 Total liabilities and Net Position $ 26,640,083 $ 40,706,223 $ 10,132,588 $ 1,356,225 $ 78,835,119 $ 10,692,043 Total Net Position $ 56,768,546 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 1,392,783 Net Position of business-type activities $ 58,161,329 The accompanying notes are an integral part of the basic financial statements. Pg 48 - city of ashland 2014 basic financial statements CITY OF ASHLAND, OREGON STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the year ended June 30, 2014 Governmental Tele- Activities Water Wastewater Electric communications Internal Service Fund Fund Fund Fund Total Funds Operating revenues: Charges for services $ 6,182,662 $ 4,251,800 $ 13,671,443 $ 1,929,101 $ 26,035,006 $ 12,819,192 Miscellaneous 17,154 4,505 130,573 4,292 156,524 1,170,253 Total operating revenues 6,199,816 4,256,305 13,802,016 1,933,393 26,191,530 13,989,445 Operating expenses: Cost of sales and services 5,195,003 2,956,948 12,196,451 2,040,562 22,388,964 13,004,926 Depreciation and amortization 922,549 1,215,556 376,762 171,430 2,686,297 608,375 Total operating expenses 6,117,552 4,172,504 12,573,213 2,211,992 25,075,261 13,613,301 Operating income (loss) 82,264 83,801 1,228,803 (278,599) 1,116,269 376,144 Non-operating income (expenses): Taxes 52 1,891,678 - 1,891,730 64,924 Intergovernmental 89,747 - 178,002 - 267,749 - Interest income 32,527 20,566 8,172 1,257 62,522 39,167 Gain/(loss) on disposal of assets (159,503) (792,575) (1,673,106) (2,625,184) (12,378) Transfers - 90,000 Tax equivalents (357,799) (335,704) (1,373,028) (2,066,531) - Interest expense (123,610) (2,110,865) (2,296) (2,236,771) Total non-operating income (expenses) (518,586) (1,326,900) (2,862,256) 1,257 (4,706,485) 181,713 Change in net position (436,322) (1,243,099) (1,633,453) (277,342) (3,590,216) 557,857 Total Net Position - beginning 20,064,157 28,289,091 10,477,596 1,527,918 60,358,762 5,598,864 Total Net Position - ending $ 19,627,835 $ 27,045,992 $ 8,844,143 $ 1,250,576 $ 56,768,546 $ 6,156,721 Change in Net Position $ (3,590,216) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 270,088 Change in Net Position of business-type activities - Statement of Activities $ (3,320,128) The accompanying notes are an integral part of the basic financial statements. comprehensive annual financial report - Pg 49 2014 basic financial statements CITY OF ASHLAND, OREGON STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the year ended June 30, 2014 Business-type Activities - Enterprise Funds Governmental Tele- Activities Water Wastewater Electric communications Internal Service Fund Fund Fund Fund Total Funds Cash flows from operating activities: Receipts from customers and users $ 6,227,560 $ 5,869,747 $ 13,779,310 $ 2,078,110 $ 27,954,727 $ 14,040,692 Payments to suppliers (3,601,040) (1,827,040) (9,806,141) (1,436,791) (16,671,012) (5,847,793) Payments to employees (1,770,933) (1,002,773) (2,385,423) (636,494) (5,795,623) (5,387,886) Net cash from operating activities 855,587 3,039,934 1,587,746 4,825 5,488,092 2,805,013 Cash flows from noncapital financing activities: Taxes collected 52 1,891,678 - - 1,891,730 64,924 Transfers in - - - - 90,000 Intergovernmental 89,747 178,002 Net cash from noncapital financing activities 89,799 1,891,678 178,002 1,891,730 154,924 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (3,519,587) (1,207,777) (861,192) (10,301) (5,598,857) (2,110,866) Principal paid on bonds, contracts and notes 395,216 408,389 (21,714) 781,891 Interest paid on debt (123,610) (2,110,865) (2,296) (2,236,771) Tax equivalents (357,799) (335,704) (1,373,028) (2,066,531) Net cash from capital and related financing activities (3,605,780) (3,245,957) (2,258,230) (10,301) (9,120,268) (2,110,866) Cash flows from investing activities: Interest from investments and other income 32,527 20,566 8,172 1,257 62,522 39,167 Net increase (decrease) in cash and investments (2,627,867) 1,706,221 (484,310) (4,219) (1,410,175) 888,238 Cash and investments, beginning of year 5,699,908 1,984,279 1,730,237 318,092 9,732,516 5,813,134 Cash and investments, end of year 3,072,041 3,690,500 1,245,927 313,873 8,322,341 6,701,372 Reconciliation of operating income to net cash provided by opertating activities: Operating income (loss) 82,264 83,801 1,228,803 (278,599) 1,116,269 376,144 Depreciation and amortization 922,549 1,215,556 376,762 171,430 2,686,297 608,375 Change in assets and liabilities: (Increase) decrease in Receivables 27,744 1,613,442 (22,706) 144,717 1,763,197 51,247 Inventories (80,682) 3,181 (45,753) (21,205) (144,459) 1,849 Deferred charges 8,950 - - 8,950 - Increase (decrease) in Accounts payable and accrued liabilities (24,062) 102,994 33,406 (23,107) 89,231 456,600 Other liabilities (81,176) 20,960 17,234 11,589 (31,393) 1,310,798 Net cash from operating activities $ 855,587 $ 3,039,934 $ 1,587,746 $ 4,825 $ 5,488,092 $ 2,805,013 The accompanying notes are an integral part of the basic financial statements. Pg 50 - city of ashland 2014 notes to basic financial statements NOTES TO BASIC FINANCIAL STATEMENTS comprehensive annual financial report - Pg 51 2014 notes to basic financial statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Ashland, Oregon (the City) is a municipal corporation, governed by an elected mayor and a six -member council. The accompanying financial statements present the City and its component unit, an en- tity for which the City is considered to be financially accountable. Blended component units, although le- gally separate entities, are, in substance, part of the City's operations. Blended Component Unit. The Parks and Recreation Commission (the Commission) was created by vote of qualified electors of the City of Ashland at a special election on December 15, 1908. By City Char- ter, the Commission has control over all park designated lands within the City. By City Charter, the Com- mission may not own any park lands within the City, but has responsibility for maintenance of parks and certain other facilities. The members of the Commission's governing board are elected by the voters. However, the Commission is fiscally dependent upon the City because, by state law and City Charter, the Commission budget and tax levy must be included as part of the City's. The City must also approve any debt issuance. Additionally, the City has ultimate financial responsibility for the Commission. The Commis- sion is presented as a governmental fund type. Due to the funding change at the end of the year for 2014, The Parks and Recreation Commission is now a blended component unit. Discretely Presented Component Unit. The Financial Statements of the Ashland Parks and Recreation Commission no longer qualify as a discretely presented component unit at end of year 2014. B. Government-wide and Fund Financial Statements Governmental Accounting Standards Boards Statement No. 34 (GASBS 34) The presentation of financial information required by GASBS 34 for Basic Financial Statements and Sup- plementary Information are described below and in the Management's Discussion and Analysis located earlier in this document. The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Changes in Net Position) report information on the activities of the primary govern- ment and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who pur- chase, use, or directly benefit from goods, services, or privileges by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particu- lar function or segment. Taxes and other items not properly included among program revenues are re- ported as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement fo- cus and the accrual basis of accounting, as are the proprietary funds financial statements. Revenues are recorded when earned and expenses are reported when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the pro- vider have been met. Pg 52 - city of ashland 2014 notes to basic financial statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The budgetary basis of accounting is the same as Generally Accepted Accounting Principles (GAAP). Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City consid- ers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Ex- penditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judg- ments, are recorded only when the payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are accru- able and so have been recognized as revenues of the current period. All other revenue items are consid- ered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: o The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. o The Street Fund accounts for the resources and operating expenditures related to the maintenance, operation and construction of the City's streets and storm water collection infrastructure. While a sub- stantial portion of revenues come from user fees, the primary source is state-shared highway funds. o The Parks Fund accounts for the resources and operating expenditures related to the Parks opera- tions, recreational and the golf course. The City reports the following major proprietary funds: o The Water Fund accounts for the resources and expenses related to supply, treatment and distribu- tion of water throughout the City. The primary source of revenue is user fees. o The Wastewater Fund accounts for the resources and expenses related to collection and treatment of wastewater throughout the City. The primary source of revenue is user fees. o The Electric Fund accounts for the resources and expenses related to distribution of electricity throughout the City. The primary source of revenue is user fees. o The Telecommunications Fund accounts for the resources and expenses related to broadband and high-speed data transmission services throughout the City. The primary source of revenue is user fees. Additionally, the City reports the following fund types: o Internal Service Funds account for general and public works administration, finance, information ser- vices, and fleet management services primarily provided to other departments or agencies of the City, or to other governments, on a cost reimbursement basis. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Government Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their busi- ness-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payment-in-lieu of taxes and other charges between the City's vari- comprehensive annual financial report - Pg 53 2014 notes to basic financial statements ous utility funds and the other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, ser- vices, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contribu- tions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distin- guish operating revenues and expenses from non-operating items. Operating revenues and expenses result from providing, producing and delivering goods in connection with a proprietary fund's principal on- going operations. The enterprise and internal service funds are charges to customers for sales and ser- vices. Where applicable, enterprises also recognize the portion of System Development Charges intended to recover the cost of connecting new customers to the system as operating revenue. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use re- stricted resources to the limits of the policies and statutes governing them first, then unrestricted re- sources as they are needed. D. Assets, Liabilities and Net Position or Equity 1. Cash and Investments The City's cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds and the State Treasurer's Investment Pool. Investments for the City, as well as for its component unit, are reported at fair value. The State Treas- urer's Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of pool shares. 2. Receivables and Payables Activity between funds that are representative of lending and borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to\from other funds." Any residual balances outstanding be- tween the governmental and business-type activities are reported in the government-wide financial state- ments as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance re- serve account in applicable governmental funds to indicate that they are not expendable available finan- cial resources. All trade and property taxes receivable are shown at net of an allowance for uncollectibles. Trade ac- counts receivable in excess of 120 days comprise the trade accounts receivable allowance for uncollect- ibles. Property taxes are levied as of July 1 on property assessed as of the same date. The tax levy is due No- vember 15, with an optional payment method of 1/3 due November 15, 1/3 due January 15, and 1/3 due March 15. Taxes paid in full November 15 are provided a 3 percent discount. The billings are considered delinquent after the appropriate due date, at which time the applicable property is subject to lien, and pen- alties and interest are assessed. Pg 54 - city of ashland 2014 notes to basic financial statements Notes and contracts receivable are recorded at par. Interest assessed is recorded as revenue when the payment becomes due. 3. Inventories and Prepaid Items All inventories are stated at moving average cost. Inventories are recorded as expenditures when con- sumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. 4. Restricted Assets Certain proceeds of the water enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the Statement of Net Position because they are maintained in separate bank accounts (not in the City's control) and their use is limited by applicable bond covenants. The "cash in transit" and "cash with escrow agent" are used to segregate resources for provi- sion of current and non-current debt service obligations. 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure (e.g. streets, roads, bridges, sidewalks and similar public domain items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined in the City's capitalization policy (dated 1989) as having a historic cost or market value in excess of $5,000. Such as- sets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets are valued at their estimated fair market value at the date of the donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as a part of the capitalized value of the asset constructed. No interest was capitalized in the current accounting pe- riod. The City of Ashland amended the capitalization policy to meet Governmental Accounting Standards Board Statement (GASBS) No. 51 requirements. New to this fiscal year, GASBS 51 relates to recognizing intan- gible assets. The pronouncement defines intangible assets as easements, water rights, timber rights, pat- ents, trademarks and computer software. The policy update states that any asset that is internally development will be capitalized if the actual or estimated cost is $25,000 or more. The useful life of the assets will be determined by the developing de- partment, the Administrative Services Department and the City Administrator. Property, plant and equipment of the primary government, as well as the component unit, is depreciated using the straight-line method over the following estimated useful lives of the related assets: Buildings and improvements 33 to 50 years Electric power generation and distribution systems 40 to 70 years Water, wastewater and storm water systems 15 to 50 years Public domain infrastructure 15 to 25 years Equipment 2 to 20 years comprehensive annual financial report - Pg 55 2014 notes to basic financial statements 6. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay bene- fits. Since the City does not have a policy to pay any amounts when employees separate from service with the City, there is no liability for unpaid accumulated sick leave. All vacation pay is accrued when in- curred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, or are taken and paid from current re- sources. 7. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bond using the effective interest method. Bonds payable are reported net of the applicable bonding pre- mium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuance are reported as other financing uses. Issu- ance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Reservations of Fund Equity In March 2009, the GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund- type Definitions. The objective of this statement is to enhance the usefulness of fund balance information by providing clear fund balance classifications that can be consistently applied and by clarifying the exist- ing governmental fund-type definitions. This statement establishes fund balance classifications that com- prise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed on the use of the resources reported in governmental funds. Under this standard, the fund bal- ance classifications of reserved, designated, and unreserved/undesignated were replaced with five new classifications - non-spendable, restricted, committed, assigned, and unassigned. Non-spendable fund balance represents amounts that are not in a spendable form. The non-spendable fund balance represents inventories and prepaid items. Restricted fund balance represents amounts that are legally restricted by outside parties for a specific pur- pose (such as debt covenants, grant requirements, donor requirements, or other governments) or are re- stricted by law (constitutionally or by enabling legislation). Committed fund balance represents funds formally set aside by the governing body for a particular pur- pose. The use of committed funds would be approved by City Council resolution. Assigned fund balance represents amounts that are constrained by the expressed intent to use resources for specific purposes that do not meet the criteria to be classified as restricted or committed. Intent can be stipulated by the governing body or by an official to whom that authority has been given by the governing body. Currently, management does not have authority to assign fund balance. Unassigned fund balance is the residual classification of the General Fund. Only the General Fund may report a positive unassigned fund balance. Other governmental funds would report any negative residual fund balance as unassigned. Pg 56 - city of ashland 2014 notes to basic financial statements The governing body has approved the following order of spending regarding fund balance categories: re- stricted resources are spent first when both restricted and unrestricted (committed, assigned or unas- signed) resources are available for expenditures. When unrestricted resources are spent, the order of spending is: committed (if applicable), assigned (if applicable) and unassigned. To preserve a sound financial system and to provide a stable financial base, the governing body has adopted a minimum fund balance policy. Resolution No. 2010-05 was established February 9, 2010. The targets for fund balances are generally a function of estimated annual operating revenue and are intended to help maintain financial viability of each fund. They vary based on how susceptible a fund is to revenue fluctuations and based on the riskiness of the activities in each different fund. 9. Deferred Outflows/Inflow of Resources In addition to assets, the statement of financial position will sometimes report a separate section for de- ferred outflow of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City does not have an item that qualifies for reporting in this cate- gory. In addition to liabilities, the statement of financial position will sometimes report a separate section for de- ferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two types, which arises only under the modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues for prop- erty taxes and special assessments. These amounts are deferred and recognized as an inflow of re- sources in the period that the amounts become available. II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information The City has adopted a biennial budget for all funds on a basis consistent with generally accepted ac- counting principles for governmental funds. The City Council resolution adopting the budget and authoriz- ing appropriations for each fund sets the level by which expenditures cannot legally exceed appropria- tions. Appropriations are at the department (organizational unit) level for funds with more than one department and by total personal services, materials and services, capital outlay, debt service, transfers, and contin- gency for those funds with only one department or function. The detail budget document, however, is re- quired to contain more specific, detailed information for the above-mentioned expenditure categories. The City budgets debt service principal and interest on a cash basis and does not budget depreciation ex- pense or amortizations done on the balance sheet. Unexpected additional resources may be added to the budget through the use of a supplemental budget. The supplemental budget process requires hearings before the public, publications in newspapers, and approval by the City Council. Original and supplemental budgets may be modified only by the City Council through the use of appropriation transfers between the levels of control. In addition, Oregon Local Budget Law provides certain specific exceptions to the supplemental budget process to increase appropriations. Such transfers and increases require approval by the City Council by adoption of a resolution. Budget ap- propriation amounts shown in the financial statements include the original and revised budget appropria- tions as approved by the City Council. Appropriations are limited to a biennium budget period of 2013- 2015; therefore, all spending authority of the City lapses at the end of the biennial period. During 2013- 2014, the City made one appropriation transfer, as well as one supplemental budget adjustment, both adopted by Resolutions. comprehensive annual financial report - Pg 57 2014 notes to basic financial statements B. Excess of Expenditures over Appropriations Expenditures of the various funds were within authorized appropriations for the year ended June 30, 2014. III. DETAILED NOTES ON ALL FUNDS A. Deposits and Investments Component U nit Total Primary Parks and Government Recreation Total Petty cash $ 5,140 $ 550 $ 5,690 Deposits with financial institutions 918,980 - 918,980 Imprest Cash 285,607 2,000 287,607 Investments 29,039,104 1,193,126 30,232,230 $ 30,248,831 $ 1,195,676 $ 31,444,507 Governmental - unrestricted $ 30,294,891 Governmental - restricted: Debt service 1,149,616 $ 31,444,507 1. Deposits Deposits with financial institutions include bank demand deposits. Oregon Revised Statutes require de- posits to be adequately covered by federal depository insurance or deposited at an approved depository as identified by the Treasury. 2. Credit Risk Deposits In the case of deposits, this is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The government does not have a deposit policy for custodial credit risk. As of June 30, 2014, the bank balance of deposits was $ 1,041,070. Of those deposits, $251,000 was covered by federal depository insurance, and the remaining is collateralized by the Oregon Public Funds Collaterali- zation Program. The remainder is collateralized per the Oregon Public Funds Collateralization Program (PFCP). Oregon Revised Statutes and City policy require depository institutions to maintain on deposit, with the collateral pool manager, securities having a value not less than ten percent of their quarter-end public fund deposits if they are adequately capitalized, 25 percent of their quarter-end public fund deposits if they are well capi- talized, or 110 percent of their quarter-end public fund deposits if they are undercapitalized or assigned to pledge 110 percent by the Office of the State Treasurer. 3. Investments Policies officially adopted by the City's board allows the entity to invest in: U.S. Treasury Obligations (bills, notes and bonds), U.S. Government Agency Securities and Instrumentalities of Government Sponsored Corporations, Banker's Acceptances, Certificates of Deposit (at commercial banks that have a branch in Oregon and Savings & Loan Associations that have a branch in Oregon), State and Local Government Securities, Commercial Paper (Al, AA,P1), State of Oregon Investment Pool, and Repurchase Transac- tions. Pg 58 - city of ashland 2014 notes to basic financial statements The State Treasurer's investment policies are governed by Oregon Revised Statutes and the Oregon Short-Term Fund Board (OSTFB). There were no known violations of legal or contractual provisions for deposits. As of June 30, 2014, the City had the following investments and maturities: Investment Maturities (in months) Investment Type Fair Value Less than 3 3-17 18-59 State Treasurer's investment pool 30,232,230 30,232,230 $ 30,232,230 $ 30,232,230 $ $ Investments are valued at fair value as required by GASBS 31. As of June 30, 2014, the fair value of the position in the Local Government Investment Pool (LGIP) is 100.8 percent of the value of the pool shares, as reported in the Oregon Short Term Fund audited financial statements. Interest Rate Risk As a means of limiting its exposure to fair value losses resulting from rising interest rates, the City's in- vestment policy allows only the purchase of investments that can be held to maturity. Investments cannot be made predicated upon selling the security prior to maturity. Oregon Revised Statutes require that investments do not exceed a maturity of 18 months, except when the local government has adopted a written investment policy that was submitted to and reviewed by the OSTFB. The City limits investment maturities as follows: 1. Under 30 days 10% minimum 2. Under 90 days 25% minimum 3. Under 270 days 50% minimum 4. Under 1 year 75% minimum 5. Under 18 months 80% minimum 6. Under 3 years 100% minimum Credit Risk Neither the Oregon Revised Statutes nor the City's investment policy limits investments as to credit rating for securities purchased from U.S. Government Agencies. The City's investments in U.S. Government Agencies were rated AAA by Standard & Poor's and Aaa by Moody's Investor Service. The state pool is unrated. Oregon Revised Statutes require Banker's Acceptances to be guaranteed by and carried on the books of, a qualified financial institution, eligible for discount by the Federal Reserve System, and issued by a quali- fied financial institution whose short-term letter of credit rating is rated in the highest category by one or more nationally recognized statistical rating organizations. Concentration of Credit Risk To avoid incurring unreasonable risks inherent to over-investing in specific instruments or in individual financial institutions, the City's investment policy sets maximum limits on the percentage of the portfolio that can be invested in any one type of security. At June 30, 2014, the City was in compliance with all per- centage restrictions. comprehensive annual financial report - Pg 59 2014 notes to basic financial statements Oregon Revised Statutes require that no more than 25 percent of the monies of local government to be invested in Bankers Acceptances of any singular qualified financial institution. Amounts in the State Treasurer's LGIP are not required by law to be collateralized. No more than the stated percentage of the overall portfolio will be invested in each of the following cate- gories of securities: U.S. Treasury Obligations 100% U.S. Government Agency Securities and Instrumentalities of Government Sponsored Corp. 100% Bankers' Acceptances 50% Certificates of Deposit 35% State and Local Government Securities 35% Repurchase Transactions 25% Commercial Paper (AA,A1,P1) 10% State of Oregon Investment Pool Securities 100% B. Receivables As of year end, Receivables for the government's individual major funds and non-major, internal service in aggregate, including the applicable allowances for uncollectable accounts, are as follows: Governmental funds report unearned and unavailable revenue in connection with receivables for reve- nues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of unavailable revenue and un- earned revenue reported in governmental funds were as follows: Components of unavailable revenue and unearned revenue reported in governmental funds at current fiscal year end: Unavailable Delinquent property taxes receivable: General fund $ 622,285 Debt service fund 31,752 Business Licenses 144,784 Rehabilitation loans 65,056 Ambulance billing 84,567 Notes receivable 384,858 SDC receivable 162,503 Special assessments not yet due: Unbonded-street fund 320,960 $ 1,816,765 Pg 60 - city of ashland 2014 notes to basic financial statements C. Capital Assets Capital asset activity for the year ended June 30, 2014, was as follows: Balance Additions Retirements Balance June 30, 2013 and Reclasses and Reclasses June 30, 2014 Governmental activities: Capital assets, not being depreciated Land $ 12,466,348 $ - $ 12,466,348 Construction in progress 3,550,743 1,496,897 3,427,491 1,620,149 Total capital assets, not being depreciated 16,017,091 1,496,897 3,427,491 14,086,497 Buildings 35,576,043 163,255 35,739,298 Improvements other than buildings 51,521,525 2,242,152 95,260 53,668,417 Machinery and equipment 14,664,146 2,545,829 556,321 16,653,654 Total capital assets, being depreciated 101,761,714 4,787,981 651,581 106,061,369 Less accumulated depreciation for: Buildings (11,795,893) (780,536) - (12,576,429) Improvements other than buildings (30,140,976) (775,471) (543,943) (30,372,504) Machinery and equipment (13,460,527) (1,714,407) (95,260) (15,079,674) Total accumulated depreciation (55,397,396) (3,270,414) (639,203) (58,028,607) Total capital assets being depreciated, net 46,364,318 1,517,567 12,378 48,032,762 Governmental activities capital assets, net $ 62,381,409 $ 3,014,464 $ 3,439,869 $ 62,119,259 Balance Additions Retirements Balance June 30, 2013 and Reclasses and Reclasses June 30, 2014 Business-type activities: Capital assets, not being depreciated - - Land $ 1,880,637 $ - $ - $ 1,880,637 Construction in progress 4,033,296 2,663,496 3,627,648 3,069,144 Total capital assets, not being depreciated 5,913,933 2,663,496 3,627,648 4,949,781 Buildings 22,089,254 - - 22,089,254 Machinery and equipment 1,059,799 109,864 1,169,663 Improvements other than buildings 89,768,373 2,825,497 8,922,101 83,671,769 Total capital assets, being depreciated 112,917,426 2,935,361 8,922,101 106,930,686 Less accumulated depreciation: Buildings (5,559,169) (435,312) - (5,994,481) Machinery and equipment (692,977) (87,893) (780,870) Improvements other than buildings (47,469,340) (2,053,125) 7,486,587 (42,035,878) Total accumulated depreciation (53,721,486) (2,576,330) 7,486,587 (48,811,229) Total capital assets being depreciated, net 59,195,940 359,031 1,435,514 58,119,457 Business-type activities capital assets, net $ 65,109,873 $ 3,022,527 $ 5,063,162 $ 63,069,238 comprehensive annual financial report - Pg 61 2014 notes to basic financial statements Depreciation expense was charged to functions/programs of the primary government as follows: General government $ 980,467 Public safety 144,816 Highways and streets 1,637,942 Parks and Rec 507,189 Total $ 3,270,414 Construction Commitments The government has active construction projects as of June 30, 2014. The projects include construction of various infrastructure improvements and additions to the transportation, storm water, water, wastewater and telecommunications systems. The City has remaining commitments under construction contracts of approximately $13,741,260 at June 30, 2014. D. Interfund Receivable, Payable and Transfers The internal transfers are budgeted and recorded to show legal and operational commitments between funds such as cost sharing or debt service. Interfund loans are used to assure adequate fund balances in funds where operations do not currently (on a short term basis) generate enough support through reve- nues. The composition of interfund balances as of June 30, 2014, is as follows: Transfers Transfers Fund In Out General fund $ 104,529 $ 190,500 Street fund - - Parks fund 602,000 Non-major governmental 646,398 48,427 Central Services fund 90,000 Total $ 840,927 $ 840,927 Pg 62 - city of ashland 2014 notes to basic financial statements The first interfund loan is for the payoff of the Hargadine parking structure. The second interfund loan is from the Reserve Fund to help fund the beginning of the new Health Benefits Fund. Interfund Receivable Interfund Receivable Fund and Payable In and Payable Out Non-major governmental $ 364,795 Health Benefits Fund 500,000 Central Services 364,795 General Fund 500,000 Total $ 864,795 $ 864,795 E. Long-term Debt 1. Unbonded Long-term Debt (Notes and Contracts) The government entered into promissory note agreements for financing the acquisition of several land parcels, construction of a three-level parking structure, federally-mandated construction of wastewater treatment facilities, and startup construction and operation of the fiber optic network. The original amount of all promissory notes issued in prior years was $38,720,613. The promissory notes are funded by various sources: open space land acquisition by prepared food and beverage tax; the parking structure by revenue generated from parking fees; and the wastewater treat- ment facility by prepared food and beverage tax, system development charges and user rates. Promissory notes outstanding at year end are as follows; Purpose Interest Rates Amount Government activities 3.77% $ 374,061 Government activities 5.75% 165,412 $ 539,473 The original amount of all promissory notes issued in prior years was $38,720,613. Promissory note debt service requirement to maturity is as follows: Year ending Governmental Activities June 30, Principal Interest 2015 60,932 23,196 2016 63,836 20,292 2017 66,885 17,242 2018 70,087 14,041 2019 73,449 10,678 2020-2024 204,284 23,674 2025-2029 $ 539,473 $ 109,124 comprehensive annual financial report - Pg 63 2014 notes to basic financial statements 2. General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. The original amount of general obligation bonds issued in prior years was $24,201,000. The City issued GO Bonds in November 2011 for the construction of Fire Station #2 in the amount of $2,960,000. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds consist of a 30-year serial bond with equal amount of principal maturing each year, and four issues with varying principal payments due over 12 to 20 years. General obligation bonds currently out- standing are as follows: Purpose Interest Rates Amount Government activities 2.0-4.00% $ 2,575,000 Government activities 3.7-6.02% 775,000 Government activities 3.5-5.0% 1,395,000 Government activities 2-2.8% 11,500,000 Business-type activities 2-4% 10,835,000 Business-type activities 4.95% 744,089 Business-type activities 2.00% 1,560,000 Business-type activities 2-2.5% 4,490,000 $ 33,874,089 The above table includes $14.3 million in full faith-and-credit. This is a refinancing of the Department of Environmental Quality loan that was used to help pay the costs of the wastewater treatment plant project. The original debt was under promissory notes. This refinancing generated approximately $1.34 million in Net Present Value savings on the total debt. Pg 64 - city of ashland 2014 notes to basic financial statements Future maturities of bond principal and interest at June 30, 2014, are as follows: Year Ending 2004 Full Faith and Credit 2005 GO Bonds 2009 GO Bonds June 30, Principal Interest Principal Interest Principal Interest 2015 775,000 20,906 205,000 69,750 59,127 36,110 2016 215,000 59,500 62,090 33,147 2017 225,000 48,750 65,202 30,035 2018 240,000 37,500 68,469 26,768 2019 250,000 25,500 71,901 23,337 2020-2024 260,000 13,000 417,301 58,886 2025-2029 2030-2034 $ 775,000 $ 20,906 $ 1,395,000 $ 254,000 $ 744,089 $ 208,283 Year Ending 2010 GO Bonds 2011 GO Bonds Fire Station #2 2013 AFN Debt June 30, Principal Interest Principal Interest Principal Interest 2015 1,215,000 408,750 120,000 83,188 295,000 253,360 2016 1,250,000 372,300 120,000 80,788 1,010,000 240,310 2017 1,280,000 334,800 125,000 78,388 1,035,000 219,860 2018 1,325,000 283,600 125,000 74,638 1,060,000 198,910 2019 1,370,000 230,600 130,000 70,888 1,080,000 177,510 2020-2024 4,395,000 355,600 715,000 293,087 5,775,000 530,350 2025-2029 840,000 173,825 1,245,000 17,430 2030-2034 400,000 24,200 $ 10,835,000 $ 1,985,650 $ 2,575,000 $ 879,002 $ 11,500,000 $ 1,637,730 Year Ending 2013 Water Debt GO Bonds 2013 GO Bonds New Construction Total June 30, Principal Interest Principal Interest Principal Interest 2015 160,000 29,600 280,000 91,525 3,109,127 993,189 2016 165,000 26,350 285,000 85,875 3,107,090 8987270 2017 165,000 23,050 290,000 80,125 3,185,202 815,008 2018 170,000 19,700 300,000 74,275 3,288,469 715,391 2019 175,000 16,250 295,000 68,325 3,3717901 612,409 2020-2024 725,000 29,150 1,615,000 246,875 13,9027301 1,526,948 2025-2029 1,425,000 69,613 3,510,000 260,868 2030-2034 400,000 24,200 $ 1,560,000 $ 144,100 $ 4,490,000 $ 716,613 $ 33;874,089 $ 5,846,283 comprehensive annual financial report - Pg 65 2014 notes to basic financial statements 3. Revenue Bonds The government also issues bonds on which the government pledges income derived from the acquired or constructed assets to pay debt service. The original issue in 1994 was for construction of a 3.5 million gallon reservoir and addition of and upgrade to existing distribution infrastructure. In 2003, the remaining $2.75 million of these bonds were decreased with the issuance of $5.625 million for infrastructure construction and re-funding of the original issue. On June 20, 2008, the Government is- sued $304,000 in tax exempt, low-interest (1.25 percent) Clean Renewable Energy Bonds authorized by U.S. Treasury to construct a renewable resource photovoltaic system to generate "green power" for the city's electrical system. Electric rate revenue is pledged to pay the related debt service. The City has obtained two loans from the State of Oregon - Department of Environmental Quality (DEQ). The first loan is for the wastewater treatment plant, the membrane system upgrade in the amount of $4,549,691. This is a reimbursement loan and to date $1,645,280 has been requested. The interest rate is 1%. The second DEQ loan is for water projects, such as the TAP project. The total is $ 2,970,000 at 1 % interest. The total of the drawdown at June 30, 2014 is $979,630. Purpose Interest Rates Amount Water & Wastewater 1.00% $ 2,624,910 Water 2.0-4.0% 250,000 Electric 3.8-6.01% 173,714 $ 3,048,624 Revenue bond debt service requirements to maturity are as follows: Year Ending June 30, Principal Interest 2015 391,714 5,911 2016 141,714 41,764 2017 143,714 43,492 2018 144,714 44,221 2019 145,714 44,950 2020-2024 690,144 46,222 2025-2029 630,000 47,000 2030-2034 635,000 48,000 2035-2039 125,910 20,000 $ 3,048,624 $ 341,560 4. Advance and Current Re-fundings The Government issued general obligation re-funding bonds in amounts of $2,040,000 in 1992 and $1,720,010 in 1997, to provide resources to purchase U.S. Government State and Local Government Se- ries securities, that were placed in an irrevocable trust for the purpose of generating resources for all fu- ture debt service payments of $1,870,000 and $1,625,000 of general obligation bonds. As a result, the re-funded bonds are considered to be defeased, and the liability has been removed from the business-type activities column of the Statement of Net Position. The reacquisition price exceeded the net carrying amount of the old debt by $265,010. This amount was netted against the new debt and amor- tized over the life of the re-funded debt, which was shorter than the life of the new debt issued. These ad- vance re-fundings were undertaken to reduce total debt service payments by $363,644 and $266,087, respectively, over the term of the bonds and resulted in an economic gain of $364,741. Pg 66 - city of ashland 2014 notes to basic financial statements The government issued $2,952,833 of revenue bonds in June 2003, to provide resources to purchase US Government, state and local securities that were placed in trust for the purpose of generating resources for all future debt service payments of $2,750,000 in revenue bond issued in 1984. As a result, the re- funded bonds are considered to be defeased, and the liability has been removed from the business-type activities column of the Statement of Net Position. The reacquisition price exceeded the net carrying amount of the old debt by $202,833. This amount was netted against the new debt and amortized over the life of the re-funded debt, which was shorter than the life of the new debt issued. This advance re-funding was undertaken to reduce total debt service payments by $386,048 over the term of the bonds and re- sulted in an economic gain of $738,505. On August 11, 2004, the government issued $15,500,000 in taxable general obligation revenue bonds backed by the full faith and credit of the City. The proceeds were used to pay off existing bank loans of $4,286,000 and $2,532,000 that was borrowed to construct the Ashland Fiber Network (AFN). The loans' interest rates were 5.14 percent and 7.01 percent, respectively. Taxable bonds with a longer life than the loans were issued to consolidate the bank loans. The average interest rate of the bonds allocable to the loan refunding was 5.38 percent. The re-funding of the loans resulted in an economic loss of $1,631. In addition to re-funding the bank loans, the bonds also provided $8.44 million to payoff internal borrowing related to AFN. On December 1, 2005, the City issued $2,560,000 in general obligation bonds with an interest rate rang- ing from 3.5 percent to 5.0 percent over the fifteen year life, re-funding a portion of the City's General Obli- gation Bonds, Series 1997 and Series 2000 bonds. The re-funding resulted in a $121,962 (4.41 percent) net present value savings. The City's GO Bond Series 2000 was originally insured by the Financial Guar- anty Insurance Company . On February 14, 2008, Moody's downgraded FGIC's rating to A3. As a conse- quence, the City's GO Bonds Series 2000 have been downgraded to A2 (which is equal to the City's un- derlying rating of A2 - higher than FGIC's A3 rating). On February 7, 2013, the City issued $6,345,000 in new debt and refinanced two existing issues, one Tax -Exempt and the other one Federally Taxable. o The new debt of $6,345,000 is Full Faith and Credit Bonds with an interest rate of 2.00 percent to 2.50 percent over the fifteen year life. The purpose for these bonds are for projects in the Street, Water and Wastewater funds and a small portion for the component unit projects. o The City also refunded a portion of the 2003 Water Revenue Bonds in the amount of $1,580,000, for ten years at 2.00 percent interest. The remaining debt of $635,000 at 3.10 percent to 3.125 percent will be paid off in the fiscal year 2015. The refunding resulted in $162,000 gross savings, equivalent to $151,000 in net present value. The refunding reduces annual debt service by an average of $15,000 in the Water Fund. o The remainder of the new issue was a partial refund of Ashland Fiber Network (AFN) 2004 Full Faith and Credit Bonds. The new issue is $11,675,000 over the next twelve years at 2.00 percent to 2.80 percent. The remaining debt of $1,505,000 at 5.328 percent to 5.395 percent will be paid off in fiscal year 2015. The refunding results in $2.01 million in gross savings, equivalent to $1.78 million in net present value. Moody's Investors Services assigned an "Al" rating to both the Tax-Exempt Bonds and the Taxable Bonds. The following table on page 68 shows the activities for both Governmental and Business type as they relate to long term liabilities. comprehensive annual financial report - Pg 67 2014 notes to basic financial statements 5. Changes in Long-term Liabilities Long-term liability activity for the year ended June 30, 2014, was as follows: Beginning Additions and Ending Due within Balance Adjustments Reductions Balance One Year Governmental Activities: Bonds payable: General obligation $ 19,140,000 $ $ 1,320,000 $ 17,820,000 $ 1,495,000 Total bonds payable 19,140,000 1,320,000 17,820,000 1,495,000 Notes and contracts 650,252 110,778 539,473 60,932 Claims and judgements 121,971 264 - 122,235 Government Activities: Long-term liabilities $ 19,912,223 $ 264 $ 1,430,778 $ 18,481,708 $ 1,555,932 Business-type Activities: Bonds Payable: General obligation $ 17,490,395 $ - $ 1,436,306 $ 16,054,089 $ 1,614,127 Revenue 830,429 2,624,910 406,715 3,048,624 271,714 Total bonds payable 18,320,824 2,624,910 1,843,021 19,102,713 1,885,841 Notes and contracts - - - Business-type Activities: Long-term liabilities $ 18,320,824 $ 2,624,910 $ 1,843,021 $ 19,102,713 $ 1,885,841 Internal service funds predominantly serve governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. At year end, $216,589 of the Internal Service Fund was compensated absences. F. Restricted Cash Assets The balances of the restricted asset accounts in the governmental and business-type are as follows; General Government Restricted Cash: Debt service for GO Debt $ 1,149,616 $ 1,149,616 G. Compensated Absences The General Fund is typically used to liquidate the compensated absences for governmental funds. The balances of the compensated absences accounts in the governmental and business-type are as follows: Beginning Ending Due within Balance Additions Reductions Balance a Year Governmental Activities: $ 853,709 $ 881,908 $ 853,709 $ 881,908 $ 220,477 Business-type Activities: 455,278 488,621 455,278 488,621 122,155 Total compensated absences payable $ 1,308,987 $ 1,370,529 $ 1,308,987 $ 1,370,529 $ 342,632 Pg 68 - city of ashland 2014 notes to basic financial statements IV. OTHER INFORMATION A. Risk Management The government is exposed to various risks of loss related to: torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; workers' compensation; and post retirement benefits for which the government is self-insured to defined levels. The government has established limited risk man- agement programs for liability and workers' compensation. The government purchases re-insurance above defined loss levels in each program. Premiums are paid into the Insurance Services internal service fund by all other funds, component units, and potential com- ponent units, and are available to pay claims, claim reserves, and administrative costs of the programs. These interfund and agency premiums are used to offset the amount of claims expenditures reported. As of June 30, 2014, such premiums did not exceed paid claims and reserves. Effective April 1, 2004, Ashland Community Health Care (ACH), established a separate workers' compen- sation self-insurance fund and their potential liability has been removed. Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not re- ported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it de- pends on many complex factors, such as inflation, change in legal doctrines, and damage awards. Accordingly, claims are re-evaluated periodically to consider the effects of inflation, recent claim settle- ment trends (including frequency and amount of pay-outs), and other economic and social factors. Liability claims have a seven year statute of limitations and open claims, not in litigation, are frozen. An excess insurance policy covers claims after an aggregate annual settlement of $50,000. Settlements have not exceeded coverage's in each of the last three fiscal years. Workers' compensation claims are carried and reviewed from the date of self-insurance, July 1, 1989. An excess insurance policy covers individual claims in excess of $300,000. Changes in the balances of claims liability during the past two years are as follows: Year ended June 30, 2014 Year ended June 30, 2013 Unpaid claims, beginning of fiscal year $ 121,971 $ 196,302 Incurred claims (including IBNRs) 264 (74,331) Unpaid claims, end of fiscal year $ 122,235 $ 121,971 The City has established an internal service fund to account for self insurance of Health care. Beginning July 1St, 2013, the city implemented a self-insured health benefit program that provides medical, dental and vision coverage to all regular full and part-time employees and their dependents as well as non- Medicare eligible retirees and their dependents. The City has established a self-insurance reserve to pay medical, dental, and vision claims up to the self-insurance retention limit of $ 100,000 per covered individ- ual. June 30, 2014 Accrued claim liability, July 1 $ - Incurred claims 4,122,937 Claims payment (3,707,343) Accrued Claim liability, June 30 $ 415,594 comprehensive annual financial report - Pg 69 2014 notes to basic financial statements B. Contingent Liabilities In August 2011 Ashland City Council approved Ashland Community Hospital (ACH) seeking an affiliation with a larger hospital group to address financial impacts relating to operations of a small, stand-alone hos- pital in a difficult economy. On April 9, 2012, a formal report was made to the Council on the decision by ACH to enter into a 90-day period of exclusive negotiations with Dignity Health. City of Ashland retains ownership of the hospital property consistent with prior years and Council must approve of the terms of any merger. On June 4, 2013 Council approved the affiliation agreement between ACH and Asante. Under this affilia- tion agreement, the City transfered its sole corporate membership in ACH to Asante. Asante will agree to operate ACH as a general hospital for at least 15 years. If it fails to do so within the first three years of the agreement, sole corporate membership will revert to the City including the debt. If it fails to operate ACH as a general hospital in years four through 15 of the agreement, Asante will pay the City $4 million in what is the equivalent of liquidated damages. In addition, should Asante fail to operate ACH as a general hospi- tal in the first three years of the agreement, thus causing reversion to the City, Asante will pay the City $8 million; reduced by an amount equal to payment into the ACH defined benefit retirement plan in excess of $900,000 averaged annually. Asante has the right to exercise a reversionary interest in the first three years of the agreement if total pension liability exceeds $16 million or if previously unknown liabilities arise after closing that exceed $4 million. In the event of a reversion from Asante to the City in the first three years of the agreement, caused by Asante's failure to operate ACH as a general hospital, Asante must pay to ACH $8 million, reduced by no more than $2 million for higher-than-expected contributions to the ACH defined benefit pension plan. Below is the current debt schedule: Year Ending June 30, Principal Interest 2015 361,425 313,660 2016 7,364,972 175,932 $ 7,726,397 $ 489,592 C. Other Post Employment Benefits Post Employment Stipend Plan Description - In addition to providing pension benefits, the City provides certain benefits for 19 retired City employees from the management, unrepresented group who completed a minimum of 15 years em- ployment with the City. The City pays a monthly stipend from the retiree's 60th birthday or date of retire- ment, whichever is later, until the retiree's death. These benefit obligations are required by labor bargain- ing agreements and the exempt employee ordinance. The cost of retiree benefits is recognized as an ex- pense in the Insurance Services Fund (an internal service fund) when eligible employees retire. The amount advance funded at retirement is based solely on the City's estimate. On July 16, 2008 a Resolu- tion was passed which states that any employee hired on or after July 1, 2008, or hired into management on or after July 1, 2008 will not be eligible to receive retiree benefits under this provision. Funding Policy - The benefits from this program are paid by the Insurance Fund. There is no obligation on the part of the City to fund these benefits in advance. Annual Benefit Cost and Net Benefit Obligation - The City's annual Other Post Employment Benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer and an Pg 70 - city of ashland 2014 notes to basic financial statements amount actuarially determined in accordance and within the parameters of GASBS 45. The ARC repre- sents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the OPEB obligation at the end of the year. The remaining am- ortization period is thirteen years. Actuarial Methods and Assumptions - The ARC for the current year was determined as part of the August 1, 2012, actuarial valuation, using the present value of projected benefits discounted at the valuation inter- est rate (4.50 percent). The assumed health costs will increase 7.25 percent in the first year (August 1, 2013, premiums compared with August 1, 2012, premiums), In future years, the medical and vision cost trend varies from 5.75% to 6.75% depending upon the timing of the excise tax scheduled to affect health care benefits beginning in 2018. The demographic assumptions, such as mortality rates, disability inci- dence rates, retirement rates and withdrawal rates, are the same as those used by Oregon PERS for cit- ies. Funding Status and Funding Progress -As of June 30, 2013, the most recent actuarial valuation date, the plan was zero percent funded. The actuarial accrued liability for benefits was $3,912,886 and the actu- arial value of assets was zero, resulting in an unfunded actuarial accrued liability (UAAL) of $3,912,886. June 30, 2014 June 30, 2012 Present value of benefits $ 5,035,267 $ 3,940,139 Actuarial accrued liability 3,912,886 2,704,203 Assets - - Unfunded actuarial accrued liability $ 3,912,886 $ 2,704,203 Annual % of Annual OPEB Net Fiscal Year Ending OPEB Cost Cost Contributed OPEB Obligation 6/30/2014 $ 371,007 18.22% $ 1,687,013 6/30/2013 387,045 15.24% 1,383,606 6/30/2012 314,263 18.65% 1,055,551 Year ended Year ended June 30, 2014 June 30, 2013 Annual required contribution (medical) $ 438,650 $ 438,650 Interest on net OPEB obligation (BOY) 48,426 36,944 Adjustment to ARC for net OPEB obligation - - Annual OPEB costs 487,076 475,594 Expected contributions (183,669) (88,549) Increase (decrease) in net OPEB obligation 303,407 328,055 Net OPEB obligation - beginning of fiscal year $ 1,383,606 $ 1,055,551 Net OPEB obligation - end of fiscal year $ 1,687,013 $ 1,383,606 Post Employment Health Insurance Subsidy Plan Description - The City operates a single-employer retiree benefit plan that provides post employment health, dental, vision and life insurance benefits to eligible employees and their spouses. There are active and retired members in the plan. Benefits and eligibility for members are established through the collec- tive bargaining agreements. The City's post-retirement healthcare plan was established in accordance comprehensive annual financial report - Pg 71 2014 notes to basic financial statements with Oregon Revised Statutes (ORS) 243.303. ORS stipulated that for the purpose of establishing health care premiums, the rate must be based on all plan members, including both active employees and retir- ees. The difference between retiree claims cost (which is generally higher in comparison to all plan members because of the effect of age) and the amount of retiree healthcare premiums represents the City's implicit employer contribution. The City did not establish an irrevocable trust (or equivalent arrangement) to account for the plan. Funding Policy - The benefits from this program are paid by the retired employees on a self-pay basis and the required contribution is based on projected pay-as-you go financing requirements. There is no obligation on the part of the City to fund these benefits in advance. Annual Pension Cost and Net Pension Obligation - The City's annual Other Post Employment Benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer and an amount actuarially determined in accordance within the parameters of GASBS 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The follow- ing table shows the components of the OPEB obligation at the end of the year. Actuarial Methods and Assumptions - The ARC for the current year was determined as part of the August 1, 2012, actuarial valuation, using the present value of projected benefits discounted at the valuation inter- est rate (4.50 percent). The assumed health costs will increase 7.25 percent in the first year (August 1, 2013, premiums compared with August 1, 2012, premiums), In future years, the medical and vision cost trend varies from 5.75% to 6.75% depending upon the timing of the excise tax scheduled to affect health care benefits beginning in 2018. The demographic assumptions, such as mortality rates, disability inci- dence rates, retirement rates and withdrawal rates, are the same as those used by Oregon PERS for cit- ies. June 30, 2014 June 30, 2013 Present value of benefits $ 4,673,112 $ 4,865,844 Actuarial accrued liability 2,764,065 2,802,196 Assets - - Unfunded actuarial accrued liability $ 2,764,065 $ 2,802,196 Year ended Year ended June 30, 2014 June 30, 2013 Annual required contribution (medical) $ 147,619 $ 179,810 Amortization of UAAL 343,002 214,472 Annual required contribution 490,621 394,282 Interest on prior year $ 44,600 $ 43,346 Adjustment to ARC 153,221 73,644 Implicit benefit payments 198,524 173,353 Increase (decrease) in net OPEB obligation 183,476 190,631 Net OPEB obligation - beginning of fiscal year $ 1,274,279 $ 1,083,648 Net OPEB obligation - end of fiscal year $ 1,457,755 $ 1,274,279 Pg 72 - city of ashland 2014 notes to basic financial statements Fiscal Annual Percentage Net Year OPEB of annual OPEB OPEB Ending Cost Cost Contributed Obligation 6/30/2014 $ 382,000 52% $ 1,457,755 6/30/2013 363,984 48% 1,274,279 6/30/2012 349,826 44% 1,083,648 D. Employee Retirement System and Pension Plan The City contributes to the Oregon Public Employees Retirement Fund (OPERF), a cost-sharing multiple- employer defined benefit pension plan administered by the Oregon Public Employees Retirement System (PERS). PERS provides retirement and disability benefits, post employment health care benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS is administered under Oregon Revised Statute (ORS) Chapter 238. ORS 238.620 establishes the Public Employees Re- tirement Board as the governing body of PERS. PERS issues a publicly available financial report that in- cludes financial statements and required supplementary information. That report can be obtained by writ- ing to PERS, P.O. Box 23700, Tigard, OR 97281-3700, or by calling 1-503-598-7377. Funding policy. Plan members are required to contribute six percent of their annual covered salary. ORS 238.225 requires the City to contribute at an actuarially determined rate(s). In 2003, the Oregon Legisla- ture revised OPERF operations and how benefits for existing and new employees are calculated and funded. Accordingly, employers may now have two rates to use in calculating the amount owed to fund the liabilities of employees benefits in OPERF. The new plan, established in 2003, is called the Oregon Public Service Retirement Plan (OPSRP) and the current rates are: PERS-General Service 13.35 percent, PERS-Police and Fire 20.55 percent, OPSRP-General Service 11.63 percent, and OPSRP-Police and Fire 14.36 percent, respectively, of annual covered payroll. The City has "picked up" employee contribu- tions at a rate of six percent, as allowed under Oregon law. The contribution requirement of plan members and their employers are established under ORS Chapter 238, and may be amended by an act of the Ore- gon legislature. The City elected to join the Local Government Rate Pool in 2000 and the State and Local Rate Pool in 2002, to minimize annual variances in employer rates. For 2013-2014, the City's annual pension cost of $3,209,292 was equal to the City's required and actual contributions. This consisted of $881,492 "picked up" and paid by the City on behalf of employees and $2,327,800 paid by the City. The required contribution was determined as part of the December 31, 2011, actuarial valuation, using the entry are actuarial cost method. The Unfunded Actuarial Liability, if any, is amortized as a level percentage of covered payroll over a twenty year period on an open basis. The actu- arial assumptions include (a) eight percent investment rate of return (net of administrative expenses), (b) projected salary increases of 4.25 percent per year (attributable to general wage adjustments, with addi- tional increases for promotion and longevity that vary by age and services), and (c) two percent per year cost-of-living adjustments. The underlying rate of inflation is 3.5 percent per year. Three Year Trend Information for PERS: GASB Statement No. 27 Required Disclosures Three Year Trend Information (C of A) City of Ashland Fiscal Annual Percentage Net Year Pension of C of A Pension Ending Cost (C of A) Contributed Obligation 6/30/2014 $ 3,209,292 100% 6/30/2013 2,759,047 100% 6/30/2012 2,669,770 100% comprehensive annual financial report - Pg 73 2014 notes to basic financial statements E. Deferred Charges Deferred Charges resulted from the start-up cost associated with the Ashland Fiber Network (AFN) under FAS 51. The development stage revenues and expenses have been deferred and will be amortized over the estimated life of the system infrastructure. The balance at June 30, 2014, is as follows: Startup costs $ 1,861,076 Less accumulated amortization 1,462,435 $ 398,641 F. Fund Balance Constraints The specific purposes for each of the categories of the fund balance as of June 30, 2014, are as follows: Non Major Fund Balances: General Fund Street Fund Parks Funds Total Restricted for: Asset forfeiture 28,897 28,897 TOT tourism 116,131 - 116,131 Library Levy 142,497 142,497 CDBG restriction - - 33,801 33,801 SDC - Transportation 2,415,789 - 2,415,789 SDC - Parks 508,399 508,399 Perpetual care 896,572 896,572 Debt commitment - - 794,695 794,695 Committed for: Parking surcharge 287,725 - 287,725 Public art 78,154 78,154 Affordable housing 148,426 - - - 148,426 Grubbs Case 22,230 22,230 Street activities 2,321,834 2,321,834 Parks activities 583,394 332,482 915,876 Airport activities - - - 80,488 80,488 Food and beverage tax 470,422 470,422 CIP - Facilities 944,553 944,553 Assigned for: N/A Unassigned: 3,731,916 - - - 3,731,916 Total fund balances: $ 4,555,976 $ 4,737,623 $ 583,394 $ 4,061,412 $ 13,938,405 Pg 74 - city of ashland 2014 notes to basic financial statements G. Service Concession Agreement The City of Ashland contracts with the Skinner Aviation to operate the City owned airport. Skinner Aviation has been the airport's Fixed Base Operator since 1993 and is responsible for all oversight of the airport facilities including radio control, fuel facility, aircraft maintenance, hangar rental collection, flight training and facility maintenance. They collect the income for the City and remit the City's revenue on a monthly basis, they keep 25% of the monthly revenue and receive a credit for Water and Garbage services. No upfront monies were exchanged by either party when the contract was executed, so thus there is not an asset or liability to recognize in the financial statements. H. Restatement The beginning Net Position of the city was restated due to the fact that in the prior year the Ashland Parks an Recreation Commission was a discrete component unit, in 2013-14 the financial arrangement changed and it became a blended component unit. The June 30, 2013 Net Position of the City was $49,029,187, the Parks amount was $11,421,952, to come to the restated balance this year of $60,451,139. comprehensive annual financial report - Pg 75 2014 comprehensive annual financial report F 7111, i.. Pg 76 - city of ashland 2014 required supplementary information REQUIRED SUPPLEMENTARY INFORMATION comprehensive annual financial report - Pg 77 2014 required supplementary information Pg 78 - city of ashland 2014 required supplementary information NOTES TO REQUIRED SUPPLEMENTARY INFORMATION The budgetary basis differs from GAAP when the City has interfund loan transactions. For the budgetary basis, it is considered another financing source; for GAAP it is purely a balance sheet transaction comprehensive annual financial report - Pg 79 2014 required supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF FUNDING PROGRESS For the year ended June 30, 2014 Post Employment Benefits Actuarial Actuarial Actuarial UAAL as a Valuation Value of Accrued Unfunded Funded Covered % of Covered Date Assets Liability AAL Ratio Payroll Payroll Health Care 08/01/2008 $ $ 2,923,625 $ 2,923,625 0% $ 12,757,206 23% 08/01/2010 $ $ 2,802,196 $ 2,802,196 0% $ 12,889,661 22% 08/01/2012 $ $ 2,764,065 $ 2,764,065 0% $ 13,988,043 20% Actuarial Actuarial Actuarial UAAL as a Valuation Value of Accrued Unfunded Funded Covered % of Covered Date Assets Liability AAL Ratio Payroll Payroll OPEB 6/30/2009 $ $ 1,882,214 $ 1,882,214 0% $ 12,757,206 15% 6/30/2011 $ $ 2,704,203 $ 2,704,203 0% $ 12,889,661 21% 6/30/2013 $ $ 3,912,886 $ 3,912,886 0% $ 13,988,043 28% Pg 80 - city of ashland 2014 required supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERALFUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Positive Revenues: FY 2013-14 Original Final (Negative) Taxes $ 17,805,058 $ 36,158,607 $ 36,158,607 $ (18,353,549) Fees, licenses and permits 667,416 1,545,692 1,545,692 (878,276) Intergovernmental 703,160 1,277,045 1,429,981 (726,821) Charges for services 1,491,564 3,062,700 3,062,700 (1,571,136) Fines and forfeitures 183,732 339,000 339,000 (155,268) Interest on investments 27,332 43,000 43,000 (15,668) Miscellaneous 80,867 124,000 124,000 (43,133) Total revenues 20,959,129 42,550,044 42,702,980 (21,743,851) Expenditures: General Government: Administration 535,493 1,365,465 1,714,422 1,178,929 Administrative Services: Band 55,955 120,390 120,390 64,435 Social services 127,233 257,688 257,688 130,455 Economic development 643,005 1,433,226 1,433,226 790,221 Parks Services 3,959,833 8,856,000 8,856,000 4,896,167 Public Works: Cemetery 319,459 704,551 704,551 385,092 Community Development: Planning 1,243,646 2,730,822 2,730,822 1,487,176 Building 661,396 1,390,632 1,390,632 729,236 Miscellaneous: 80,576 610,208 261,251 180,675 Total general government 7,626,596 17,468,982 17,468,982 9,842,386 Public Safety: Police 6,075,095 12,391,656 12,463,656 6,388,561 Municipal court 498,371 994,970 994,970 496,599 Fire and rescue 6,528,967 13,053,484 13,134,420 6,605,453 Total public safety 13,102,433 26,440,110 26,593,046 13,490,613 Contingency 1,041,000 1,041,000 1,041,000 Total expenditures 20,729,029 44,950,092 45,103,028 24,373,999 Excess (deficiency) of revenues over (under) expenditures 230,100 (2,400,048) (2,400,048) 2,630,148 Other financing sources (uses): Transfers in 104,529 110,600 110,600 6,071 Transfers out (500) (192,824) (192,824) 192,324 Total other financing sources (uses) 104,029 (82,224) (82,224) 198,395 Net change in fund balance 334,129 (2,482,272) (2,482,272) 2,816,401 Fund balance, July 1, 2013 3,385,680 3,259,706 3,259,706 125,974 Fund balance, June 30, 2014 $ 3,719,809 $ 777,434 $ 777,434 $ 2,942,375 Reconciliation to GAAP fund balance Interfund Loan 500,000 Reserve fund balance: 336,167 $ 4,555,976 comprehensive annual financial report - Pg 81 2014 required supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL STREET FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Taxes $ 57,273 $ 46,000 $ 46,000 $ 11,273 Intergovernmental 1,166,800 3,363,166 3,363,166 (2,196,366) Charges for services 2,000,061 4,061,600 4,061,600 (2,061,539) System development charges (SDC) 93,644 130,000 130,000 (36,356) Assessments 59,483 20,000 20,000 39,483 Interest on investments 23,207 20,000 20,000 3,207 Miscellaneous 233,209 220,000 220,000 13,209 Total revenues 3,633,677 7,860,766 7,860,766 (4,227,089) Expenditures: Highways and streets: Operations and maintenance 2,705,458 7,970,460 7,970,460 5,265,002 Storm water 569,250 1,273,547 1,273,547 704,297 Transportation SDCs 36,424 446,613 446,613 410,189 Storm water SDCs 2,044 80,600 80,600 78,556 Local improvement districts - - - - New debt - - - - Total highways and streets 3,313,176 9,771,220 9,771,220 6,458,044 Contingency 215,000 215,000 215,000 Total expenditures 3,313,176 9,986,220 9,986,220 6,673,044 Excess (deficiency) of revenues over (under) expenditures 320,501 (2,125,454) (2,125,454) 2,445,955 Net change in fund balance 320,501 (2,125,454) (2,125,454) 2,445,955 Fund balance, July 1, 2013 4,417,122 3,185,314 3,185,314 1,231,808 Fund balance, June 30, 2014 $ 4,737,623 $ 1,059,860 $ 1,059,860 $ 3,677,763 Pg 82 - city of ashland 2014 required supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARKS AND RECREATION FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Charges for services - External $ 853,490 $ 1,793,633 $ 1,793,633 $ (940,143) Charges for services - Internal 3,959,833 8,856,000 8,856,000 (4,896,167) Interest on investments 5,841 26,000 26,000 (20,159) Miscellaneous 34,862 69,000 69,000 (34,138) Total revenues 4,854,026 10,744,633 10,744,633 (5,890,607) Expenditures: Parks and Recreation: Operations and maintenance 3,719,517 7,469,390 7,469,390 3,749,873 Recreation 1,207,579 2,547,830 2,547,830 1,340,251 Golf Course 524,969 1,012,880 1,012,880 487,911 Total Parks and Recreation 5,452,065 11,030,100 11,030,100 (1) 5,578,035 Contingency 100,000 100,000 100,000 Total expenditures 5,452,065 11,130,100 11,130,100 5,678,035 Excess (deficiency) of revenues over(under)expenditures (598,039) (385,467) (385,467) (212,572) Other financing sources (uses): Transfers out (602,000) (922,000) (922,000) 320,000 Total other financing sources (uses) (602,000) (922,000) (922,000) 320,000 Net change in fund balance (1,200,039) (1,307,467) (1,307,467) 107,428 Fund balance, July 1, 2013 1,783,433 1,973,756 1,973,756 (190,323) Fund balance, June 30, 2014 $ 583,394 $ 666,289 $ 666,289 $ (82,895) (1) Appropriation level comprehensive annual financial report - Pg 83 2014 comprehensive annual financial report Pg 84 - city of ashland 2014 supplementary information SUPPLEMENTARY INFORMATION Combining Individual Fund Statements and Other Financial Schedules comprehensive annual financial report - Pg 85 2014 supplementary information CITY OF ASHLAND, OREGON COMBINING BALANCE SHEET ALL NON-MAJOR FUNDS For the year ended June 30, 2014 Governmental Fund Types Permanent Parks Fund Type Total Other Capital Capital Debt Cemetery Governmental CDBG Airport Improvements Improvements Service Trust (Compilation Fund Fund Fund Fund Fund Fund Only) ASSETS Cash and cash equivalents $ 3,098 $ 76,973 $ 1,891,234 $ 324,732 $ $ 895,056 $ 3,191,093 Receivables (net of allowance for uncollectibles) 40,347 10,007 293,561 24,623 41,626 1,516 411,680 Cash - restricted - - - 1,149,616 - 1,149,616 Total assets 43,445 86,980 2,184,795 349,355 1,191,242 896,572 4,752,389 LIABILITIES AND FUND BALANCES Accounts payable 9,644 6,492 98,918 16,873 - - 131,927 Deferred revenue - - 162,503 31,752 194,255 Interfund loan payable 364,795 364,795 Due to other funds - - - - Liabilities payable from restricted assets - - - - - Total liabilities 9,644 6,492 261,421 16,873 396,547 690,977 Fund Balances: Restricted for: CDBG restriction 33,801 - - - - 33,801 Systems development charges - 508,399 - 508,399 Perperture care - - 896,572 896,572 Committed for: Special revenue funds 80,488 - 80,488 Debt service - - 794,695 794,695 Parks Improvements 341,907 - - 341,907 Capital projects funds 1,073,068 332,482 - 1,405,550 Total equity and other credits 33,801 80,488 1,923,374 332,482 794,695 896,572 4,061,412 Total liabilities and fund balances $ 43,445 $ 86,980 $ 2,184,795 $ 349,355 $ 1,191,242 $ 896,572 $ 4,752,389 Pg 86 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL NON-MAJOR FUNDS For the year ended June 30, 2014 Governmental Fund Types Permanent Parks Fund Type Total Other Capital Capital Debt Cemetery Governmental CDBG Airport Improvements Improvements Service Nonexpendable (Compilation Fund Fund Fund Fund Fund Trust Fund Only) Revenues: Taxes $ - $ - $ 472,920 $ - $ 515,618 $ - $ 988,538 Intergovernmental 252,742 - - 724,634 - - 977,376 Charges for services - 134,693 983,054 - 1,248,430 22,027 2,388,204 System development charges - 48,941 - - 48,941 Interest on investments 492 11,180 2,093 4,764 4,529 23,058 Miscellaneous - 43,279 18,372 - - 61,651 Total revenues 252,742 135,185 1,559,374 745,099 1,768,812 26,556 4,487,768 Expenditures: General government 252,742 113,858 1,685,809 1,402,249 - - 3,454,658 Debt service - 38,536 - 1,803,838 1,842,374 Total expenditures 252,742 152,394 1,685,809 1,402,249 1,803,838 5,297,032 Excess (deficiency) of revenues over (under) expenditures - (17,209) (126,435) (657,150) (35,026) 26,556 (809,264) Other financing sources (uses): Transfers in 602,000 43,898 500 646,398 Transfers out (43,898) - (4,529) (48,427) Total other financing sources (uses) (43,898) 602,000 43,898 (4,029) 597,971 Net change in fund balance - (17,209) (170,333) (55,150) 8,872 22,527 (211,293) Fund balance, July 1, 2013 33,801 97,697 2,093,707 387,632 785,823 874,045 4,272,705 Fund balance, June 30, 2014 $ 33,801 $ 80,488 $ 1,923,374 $ 332,482 $ 794,695 $ 896,571 $ 4,061,412 comprehensive annual financial report - Pg 87 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Positive FY 2013-14 Original Final (Negative) Revenues: Intergovernmental $ 252,742 $ 446,646 $ 446,646 $ (193,904) Total revenues 252,742 446,646 446,646 (193,904) Expenditures: General government: Personal services 33,636 61,100 61,100 27,464 Material and services 219,106 406,735 406,735 187,629 Total general government 252,742 467,835 467,835 215,093 Contingency Total expenditures 252,742 467,835 467,835 215,093 Net change in fund balance - (21,189) (21,189) 21,189 Fund balance, July 1, 2013 33,801 21,189 21,189 12,612 Fund balance, June 30, 2014 $ 33,801 $ - $ - $ 33,801 Pg 88 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AIRPORT FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Charges for services $ 134,693 $ 268,800 $ 268,800 $ (134,107) Interest on investments 492 1,000 1,000 (508) Total revenues 135,185 269,800 269,800 (134,615) Expenditures: General government: Materials and services 113,858 208,310 208,310 94,452 Capital outlay - - - Total general government 113,858 208,310 208,310 94,452 Debt service 38,536 77,072 77,072 38,536 Contingency - 10,000 10,000 10,000 Total expenditures 152,394 295,382 295,382 142,988 Other financing sources (uses): Interfund loan 7,500 7,500 7,500 Interfund loan (19,000) (19,000) (19,000) - Total other financing sources (uses) (19,000) (11,500) (11,500) 7,500 Net change in fund balance (36,209) (37,082) (37,082) 873 Fund balance, July 1, 2013 116,697 101,550 101,550 15,147 Fund balance, June 30, 2014 $ 80,488 $ 64,468 $ 64,468 $ 16,020 comprehensive annual financial report - Pg 89 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CAPITAL IMPROVEMENTS FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Taxes $ 472,920 $ 926,300 $ 926,300 $ (453,380) Intergovernmental - 792,500 792,500 (792,500) Charges for services 983,054 1,957,254 1,957,254 (974,200) System development charges 48,941 50,000 50,000 (1,059) Interest on investments 11,180 27,000 27,000 (15,820) Miscellaneous 43,279 21,500 21,500 21,779 Total revenues 1,559,374 3,774,554 3,774,554 (2,215,180) Expenditures: General government: Publicworks - facilities 661,442 1,271,460 1,271,460 610,018 Admin services - parks open space 726,917 3,929,000 3,929,000 3,202,083 Capital outlay 297,450 1,135,000 1,135,000 837,550 Total cost of service 1,685,809 6,335,460 6,335,460 4,649,651 Contingency - 200,000 199,000 - Total expenditures 1,685,809 6,535,460 6,534,460 4,649,651 Excess (Deficiency) of revenues over (under) expenditures (126,435) (2,760,906) (2,759,906) 2,434,471 Other financing sources (uses): Bond proceeds 3,429,000 3,429,000 3,429,000 Transfers out (43,898) (466,900) (466,900) (423,002) Interfund loan (1,000) - (1,000) - Total other financing sources (uses): (44,898) 2,962,100 2,961,100 3,005,998 Net change in fund balance (171,333) 201,194 201,194 (372,527) Fund balance, July 1, 2013 2,094,707 1,689,114 1,689,114 405,593 Fund balance, June 30, 2014 $ 1,923,374 $ 1,890,308 $ 1,890,308 $ 33,066 P9 90 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARKS CAPITAL IMPROVEMENTS FUND for the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Intergovernmental $ 724,634 $ 3,929,000 $ 3,929,000 $ (3,204,366) Charges for services - 59,000 59,000 (59,000) Interest on investments 2,093 4,100 4,100 (2,007) Miscellaneous 18,372 18,372 Total revenues 745,099 3,992,100 3,992,100 (3,247,001) Expenditures: General government: Capital outlay 1,402,249 4,851,000 4,851,000 3,448,751 Total cost of service 1,402,249 4,851,000 4,851,000 3,448,751 Contingency - - - - Total expenditures 1,402,249 4,851,000 4,851,000 3,448,751 Excess (Deficiency) of revenues over (under) expenditures (657,150) (858,900) (858,900) 201,750 Other financing sources (uses): Transfers in 602,000 922,000 922,000 320,000 Total other financing sources (uses): 602,000 922,000 922,000 320,000 Net change in fund balance (55,150) 63,100 63,100 (118,250) Fund balance, July 1, 2013 387,632 239,032 239,032 148,600 Fund balance, June 30, 2014 $ 332,482 $ 302,132 $ 302,132 $ 30,350 comprehensive annual financial report - Pg 91 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL DEBT SERVICE FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Taxes $ 515,618 $ 956,176 $ 956,176 $ (440,558) Charges for services 1,248,430 2,457,640 2,457,640 (1,209,210) Assessments 252,000 252,000 (252,000) Interest on investments 4,764 20,000 20,000 (15,236) Miscellaneous - 58,604 58,604 (58,604) Total revenues 1,768,812 3,744,420 3,744,420 (1,975,608) Expenditures: Materials and services 6,294 - 15,000 8,706 Debt service: - Bancroft - 400,000 400,000 400,000 General obligation 1,797,544 3,678,621 3,663,621 1,866,077 Notes and contracts - 469,463 469,463 469,463 Total expenditures 1,803,838 4,548,084 4,548,084 (1) 2,744,246 Excess (deficiency) of revenues over (under) expenditures (35,026) (803,664) (803,664) 768,638 Other financing sources (uses): Interfund Loan - (370,000) (370,000) (370,000) Transfers in 43,898 658,724 658,724 614,826 Total other financing sources (uses): 43,898 288,724 288,724 244,826 Net change in fund balance 8,872 (514,940) (514,940) 523,812 Fund balance, July 1, 2013 1,150,618 1,121,533 1,121,533 29,085 Fund balance, June 30, 2014 $ 1,159,490 $ 606,593 $ 606,593 $ 552,897 (1) Appropriation level Reconciliation to GAAP: Interfund Loan (364,795) Total $ 794,695 P9 92 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CEMETERY TRUST FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Positive FY 2013-14 Original Final (Negative) Revenues: Charges for services $ 22,027 $ 50,000 $ 50,000 $ (27,973) Interest on investments 4,529 10,600 10,600 (6,071) Total revenues 26,556 60,600 60,600 (34,044) Other financing sources (uses): Transfers in 500 1,000 1,000 (500) Transfers out (4,529) (10,600) (10,600) 6,071 Total other financing sources (uses): (4,029) (9,600) (9,600) 5,571 Net change in fund balance 22,527 51,000 51,000 (28,473) Fund balance, July 1, 2013 874,045 886,744 886,744 (12,699) Fund balance, June 30, 2014 $ 896,572 $ 937,744 $ 937,744 $ (41,172) comprehensive annual financial report - Pg 93 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL RESERVE FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Positive FY 2013-14 Original Final (Negative) Revenues: Charges for Services $ - $ - $ - $ Interest on investments 6,587 15,000 15,000 (8,413) Total revenues 6,587 15,000 15,000 (8,413) Total expenditures - - - Excess (deficiency) of revenues over (under) expenditures 6,587 15,000 15,000 (8,413) Other financing sources (uses): Transfer in - - - - Interfund loan 510,000 510,000 510,000 Transfer out (190,000) (190,000) (190,000) - Interfund loan (500,000) (900,000) (900,000) (400,000) Total other financing sources (uses) (690,000) (580,000) (580,000) 110,000 Net change in fund balance (683,413) (565,000) (565,000) (118,413) Fund balance, July 1, 2013 1,019,580 1,019,910 1,019,910 (330) Fund balance, June 30, 2014 $ 336,167 $ 454,910 $ 454,910 $ (118,743) Reconciliation to GAAP fund balance Reserve fund $ (336,167) P9 94 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATER FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Taxes $ 52 $ - $ 52 Intergovernmental 89,747 89,747 Charges for services 5,913,633 12,383,100 12,383,100 (6,469,467) System developments charges 269,029 300,000 300,000 (30,971) Interest on investments 32,527 20,000 20,000 12,527 Miscellaneous 17,154 10,000 10,000 7,154 Total revenues 6,322,142 12,713,100 12,713,100 (6,390,958) Expenditures: Cost of services: Administration: Water conservation 183,179 449,010 449,010 265,831 Forest land management 578,038 887,265 887,265 309,227 Public works water supply 1,982,794 2,951,820 5,391,820 3,409,026 Public works water treatment 1,076,608 2,570,700 2,570,700 1,494,092 Public works water distribution 2,679,306 8,570,680 6,130,680 3,451,374 Public works reimbursement SDCs - - - - Public works improvements SDCs 102,501 282,750 282,750 180,249 Public works debt SDCs - - - - Total Cost of Service 6,602,426 15,712,225 15,712,225 9,109,799 Debt service 713,507 1,417,252 1,417,252 703,745 Contingency - 403,000 403,000 403,000 Total expenditures 7,315,933 17,532,477 17,532,477 10,216,544 Excess (Deficiency) of revenues over (under) expenditures (993,791) (4,819,377) (4,819,377) 3,825,586 Other financing sources (uses): Loan proceeds 979,630 2,787,000 2,787,000 1,807,370 Interfund loan (150,000) (150,000) (150,000) - Total other financing sources (uses) 829,630 2,637,000 2,637,000 1,807,370 Net change in fund balance (164,161) (2,182,377) (2,182,377) 2,018,216 Fund balance, July 1, 2013 6,437,575 5,741,693 5,741,693 695,882 Fund balance, June 30, 2014 $ 6,273,414 $ 3,559,316 $ 3,559,316 $ 2,714,098 Reconciliation to Net Position: Deferred charges $ 89,494 Capital assets, net 19,180,179 Compensated absences (86,741) OPEB implicit rate liability (125,780) Accrued interest (27,239) GO bonds payable (4,445,862) Revenue bonds payable (1,229,630) $ 19,627,835 comprehensive annual financial report - Pg 95 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WASTEWATER FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Taxes $ 1,891,678 $ 3,469,200 $ 3,469,200 $ (1,577,522) Charges for services 4,171,230 9,048,100 9,048,100 (4,876,870) System developments charges 80,570 130,000 130,000 (49,430) Interest on investments 20,566 36,000 36,000 (15,434) Miscellaneous 4,505 5,000 5,000 (495) Total revenues 6,168,549 12,688,300 12,688,300 (6,519,751) Expenditures: Cost of services: Public works wastewater collection 1,909,598 5,298,621 5,298,621 3,389,023 Public works wastewater treatment 2,506,020 6,527,385 6,527,385 4,021,365 Public works reimbursement SDC's - 117,500 117,500 117,500 Public works improvements SDC's 66,741 1,383,491 1,383,491 1,316,750 Total cost of service 4,482,359 13,326,997 13,326,997 8,844,638 Debt service 1,705,577 3,434,325 3,434,325 1,728,748 Contingency 440,000 440,000 440,000 Total expenditures 6,187,936 17,201,322 17,201,322 11,013,386 Excess (deficiency) of revenues over (under) expenditures (19,387) (4,513,022) (4,513,022) 4,493,635 Other financing sources (uses): Loan proceeds 3,272,000 3,272,000 3,272,000 Total other financing sources (uses) 3,272,000 3,272,000 3,272,000 Net change in fund balance (19,387) (1,241,022) (1,241,022) 1,221,635 Fund balance, July 1, 2013 4,290,774 3,546,633 3,546,633 744,141 Fund balance, June 30, 2014 $ 4,271,387 $ 2,305,611 $ 2,305,611 $ 1,965,776 Reconciliation to Net Position: Capital assets, net $ 36,232,790 Compensated absences (53,922) OPEB implicit rate liability (79,322) Accrued interest (71,434) GO bonds payable (11,608,227) Revenue Bonds Payable (1,645,280) $ 27,045,992 P9 96 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL ELECTRIC FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget - Actual Biennium Budget Amounts Positive FY 2013-14 Original Final (Negative) Revenues: Intergovernmental $ 178,002 $ 300,000 $ 300,000 $ (121,998) Charges for services 13,671,443 29,220,000 29,220,000 15,548,557 Interest on investments 8,172 22,000 22,000 13,828 Miscellaneous 147,598 384,000 384,000 236,402 Total revenues 14,005,215 29,926,000 29,926,000 15,676,789 Expenditures: Cost of Services: Electric - supply 6,531,924 13,628,373 13,628,373 7,096,449 Electric distribution 6,316,029 13,398,521 13,398,521 7,082,492 Electric transmission 942,068 2,177,635 2,177,635 1,235,567 Administration - Conservation 619,609 1,494,890 1,494,890 875,281 Total cost of service 14,409,630 30,699,419 30,699,419 16,289,789 Debt service 24,021 47,774 47,774 23,753 Contingency - 923,000 923,000 923,000 Total expenditures 14,433,651 31,670,193 31,670,193 901,264 Net change in fund balance (428,436) (1,744,193) (1,744,193) 814,305 Fund balance, July 1, 2013 2,327,540 2,334,310 2,334,310 274,954 Fund balance, June 30, 2014 $ 1,899,104 $ 590,117 $ 590,117 $ 1,089,259 Reconciliation to Net Position: Capital assets, net $ 7,206,443 Compensated absences (88,153) OPEB implicit rate liability (141,878) Accrued interest (89) Revenue bonds payable (173,714) Deferred revenue 142,431 Rounding (1) $ 8,844,143 comprehensive annual financial report - Pg 97 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL TELECOMMUNICATIONS FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Charges for services $ 1,929,101 $ 3,935,719 $ 3,935,719 $ (2,006,618) Interest on investments 1,257 2,000 2,000 (743) Miscellaneous 4,292 1,000 1,000 3,292 Total revenues 1,934,650 3,938,719 3,938,719 (2,004,069) Expenditures: Cost of services: Information Technology Department: Internet Services Division 2,042,278 4,263,843 4,263,843 2,221,565 Total cost of service 2,042,278 4,263,843 4,263,843 2,221,565 Contingency 150,000 150,000 150,000 Total expenditures 2,042,278 4,413,843 4,413,843 2,371,565 Excess (deficiency) of revenues over (under) expenditures (107,628) (475,124) (475,124) 367,496 Net change in fund balance (107,628) (475,124) (475,124) 367,496 Fund balance, July 1, 2013 587,625 506,092 506,092 81,533 Fund balance, June 30, 2014 $ 479,997 $ 30,968 $ 30,968 $ 449,029 Reconciliation to Net Position: Capital assets, net $ 848,470 Compensated absences (31,611) OPEB implicit rate liability (46,277) Rounding (3) $ 1,250,576 P9 98 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON CONSOLIDATING BALANCE SHEET INTERNAL SERVICE FUNDS For the year ended June 30, 2014 Central Insurance Health Services Services Benefits Equipment Fund Fund Fund Fund Totals ASSETS Current assets: Cash and investments $ 1,068,561 $ 1,875,992 $ 734,771 $ 3,022,048 $ 6,701,372 Interest and accounts receivable, net 20,256 - 16,137 112,937 149,330 Notes receivable - 70,837 70,837 Interfund Loan 364,795 - 364,795 Inventories 32,075 - - 41,019 73,094 Total current assets 1,485,687 1,946,829 750,908 3,176,004 7,359,428 Capital assets 591,567 - - 11,190,726 11,782,293 Accumulated depreciation (393,287) (8,056,391) (8,449,678) Capital assets, net 198,280 - - 3,134,335 3,332,615 Total assets 1,683,967 1,946,829 750,908 6,310,339 10,692,043 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable 133,454 20,625 165,948 625,116 945,143 Accrued salaries, vacation and payroll taxes 660,297 2,070 52,970 715,337 Other liabilities - - 500,000 - 500,000 Accrued claims and adjustments - 1,959,248 415,594 - 2,374,842 Total current liabilities 793,751 1,981,943 1,081,542 678,086 4,535,322 Net Position: Invested in capital assets, net of related debt 198,280 - - 3,134,335 3,332,615 Unreserved 691,936 (35,114) (330,634) 2,497,918 2,824,106 Total fund equity: 890,216 (35,114) (330,634) 5,632,253 6,156,721 Total liabilities and Net Position $ 1,683,967 $ 1,946,829 $ 750,908 $ 6,310,339 $ 10,692,043 comprehensive annual financial report - Pg 99 2014 supplementary information CITY OF ASHLAND, OREGON CONSOLIDATING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the year ended June 30, 2014 Central Insurance Health Service Service Benefits Equipment Fund Fund Fund Fund Totals Operating revenues: Service charges and fees $ 6,137,997 $ 751,543 $ 4,084,502 $ 1,845,150 $ 12,819,192 Miscellaneous 107,690 729,583 211,795 121,185 1,170,253 Total revenues 6,245,687 1,481,126 4,296,297 1,966,335 13,989,445 Operating expenses: Cost of service 6,449,527 1,055,328 4,628,478 871,593 13,004,926 Depreciation 73,137 - 535,238 608,375 Total operating expenses 6,522,664 1,055,328 4,628,478 1,406,831 13,613,301 Operating income (loss) (276,977) 425,798 (332,181) 559,504 376,144 Nonoperating income (expense): Taxes 64,924 - - 64,924 Interest income 13,219 6,395 1,547 18,006 39,167 Gain/(loss) on disposal of assets (12,378) (12,378) Transfers In 90,000 90,000 Total nonoperating income (expense) 168,143 6,395 1,547 5,628 181,713 Change in Net Position (108,834) 432,193 (330,634) 565,132 557,857 Net Position, July 1, 2013 999,050 (467,307) - 5,067,121 5,598,864 Net Position, July 1, 2014 $ 890,216 $ (35,114) $ (330,634) $ 5,632,253 $ 6,156,721 Pg 100 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON COMBINING INTERNAL SERVICE FUND STATEMENT OF CASH FLOWS for the year ended June 30, 2014 Central Insurance Health Service Service Benefits Equipment Fund Fund Fund Fund Total Cash flows from operating activities: Receipts from customers and users $ 6,239,146 $ 1,471,332 $ 4,280,160 $ 2,050,054 $ 14,040,692 Payments to suppliers (1,569,123) (660,972) (3,546,936) (70,762) (5,847,793) Payments to employees (4,853,258) (88,280) - (446,348) (5,387,886) Net cash from operating activities (183,235) 722,080 733,224 1,532,944 2,805,013 Cash flows from noncapital financing activities: Transfers in 90,000 - - - 90,000 Taxes collected 64,924 64,924 Net cash from noncapital financing activities 154,924 154,924 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (5,452) (2,105,414) (2,110,866) Net cash from capital and related financing activities (5,452) (2,105,414) (2,110,866) Cash flows from investing activities: Interest from investments and other income 13,219 6,395 1,547 18,006 39,167 Net increase (decrease) in cash and investments (20,544) 728,475 734,771 (554,464) 888,238 Cash and investments, beginning of year 1,089,105 1,147,517 - 3,576,512 5,813,134 Cash and investments, end of year 1,068,561 1,875,992 734,771 3,022,048 6,701,372 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) (276,977) 425,798 (332,181) 559,504 376,144 Depreciation and amortization 73,137 - 535,238 608,375 Change in assets and liabilities: (Increase) decrease in: Receivables (6,541) (9,794) (16,137) 83,719 51,247 Inventories 387 2,351 - (889) 1,849 Increase (decrease) in: Accounts payable and accrued liabilities (58,599) 1,776 165,948 347,475 456,600 Other liabilities 85,358 301,949 915,594 7,897 1,310,798 Net cash from operating activities $ (183,235) $ 722,080 $ 733,224 $ 1,532,944 $ 2,805,013 comprehensive annual financial report - Pg 101 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL CENTRAL SERVICES FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Taxes $ 64,924 $ 137,800 $ 137,800 $ (72,876) Intergovernmental revenues - - - Charges for services 6,137,997 12,644,870 12,644,870 (6,506,873) Interest on investments 13,219 10,000 10,000 3,219 Miscellaneous 107,690 229,390 229,390 (121,700) Total revenues 6,323,830 13,022,060 13,022,060 (6,698,230) Expenditures: Cost of services: Administration department 1,345,264 3,015,362 3,015,362 1,670,098 Information Technology department: Information Systems division 1,144,762 2,537,128 2,537,128 1,392,366 Administrative Services department 1,886,369 4,084,194 4,084,194 2,197,825 City Recorder department 415,532 708,330 708,330 292,798 Public Works department 1,604,994 3,362,420 3,362,420 1,757,426 Contingency - 104,000 104,000 104,000 Total expenditures 6,396,921 13,811,434 13,811,434 7,414,513 Other financing sources (uses): Transfer In 90,000 90,000 90,000 - Interfund loan - 370,000 370,000 370,000 Total other financing sources (uses) 90,000 460,000 460,000 370,000 Net change in fund balance 16,909 (329,374) (329,374) 716,283 Fund Balance, July 1, 2013 853,281 721,405 721,405 131,876 Fund Balance, June 30, 2014 $ 870,190 $ 392,031 $ 392,031 $ 848,159 Reconciliation to Net Position: Accrued compensated absences $ (212,358) OPEB implicit rate liability (330,692) Interfund loan 364,795 Capital assets, net 198,281 $ 890,216 Pg 102 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL HEALTH BENEFITS FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Charges for services $ 4,084,502 $ 7,993,710 $ 7,993,710 $ (3,909,208) Interest on investments 1,547 20,000 20,000 (18,453) Miscellaneous 211,795 - 211,795 Total revenues 4,297,844 8,013,710 8,013,710 (3,715,866) Expenditures: Cost of services: Materials and services 4,628,478 7,816,992 7,816,992 3,188,514 Total cost of services 4,628,478 7,816,992 7,816,992 3,188,514 Contingency 510,000 510,000 510,000 Total expenditures 4,628,478 8,326,992 8,326,992 3,698,514 Other financing sources (uses): Interfund loan 500,000 900,000 900,000 400,000 Interfund loan - (500,000) (500,000) (500,000) Total other financing sources (uses) 500,000 400,000 400,000 (100,000) Net change in fund balance 169,366 86,718 86,718 (17,352) Fund balance, July 1, 2013 - - - Fund balance, June 30, 2014 $ 169,366 $ 86,718 $ 86,718 $ (17,352) Reconciliation to GAAP: Interfund Loan (500,000) Accrued claims and judgments $ (330,634) comprehensive annual financial report - Pg 103 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL EQUIPMENT FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Intergovernmental $ - $ - $ - $ Charges for services 1,845,150 3,438,225 3,438,225 (1,593,075) Interest on investments 18,006 53,000 53,000 (34,994) Miscellaneous 121,185 113,000 113,000 8,185 Total revenues 1,984,341 3,604,225 3,604,225 (1,619,884) Expenditures: Cost of services: Public works maintenance 1,040,157 2,054,460 2,084,460 1,044,303 Total cost of service 1,040,157 2,054,460 2,084,460 1,044,303 Capital outlay 1,931,433 3,113,000 3,113,000 1,181,567 Contingency 156,000 126,000 126,000 Total expenditures 2,971,590 5,323,460 5,323,460 2,351,870 Excess (deficiency) of revenues over (under) expenditures (987,249) (1,719,235) (1,719,235) (731,986) Other financing sources (uses): Interfund loan 170,000 169,000 169,000 (1,000) Interfund loan Total other financing sources (uses) 170,000 169,000 169,000 (1,000) Net change in fund balance (817,249) (1,550,235) (1,550,235) 731,986 Fund balance, July 1, 2013 3,357,663 2,831,016 2,831,016 526,647 Fund balance, June 30, 2014 $ 2,540,414 $ 1,280,781 $ 1,280,781 $ 1,258,633 Reconciliation to Net Position: Capital assets, net $ 3,134,335 OPEB implicit rate liability (26,660) Interfund Loan Accrued compensated absences (15,836) $ 5,632,253 Pg 104 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL INSURANCE SERVICES FUND For the year ended June 30, 2014 Variance with BN 2013-2015 Final Budget Actual Biennium Budget Amounts Postive FY 2013-14 Original Final (Negative) Revenues: Charges for services $ 751,543 $ 1,464,410 $ 1,464,410 $ (712,867) Interest on investments 6,395 10,000 10,000 (3,605) Miscellaneous 729,583 60,000 60,000 669,583 Total revenues 1,487,521 1,534,410 1,534,410 (46,889) Expenditures: Cost of services: Personal services 88,280 178,080 178,080 89,800 Materials and services 663,377 1,446,500 1,446,500 783,123 Total cost of services 751,657 1,624,580 1,624,580 872,923 Contingency - 300,000 300,000 300,000 Total expenditures 751,657 1,924,580 1,924,580 1,172,923 Net change in fund balance 735,864 (390,170) (390,170) 1,126,034 Fund balance, July 1, 2013 848,857 819,457 819,457 29,400 Fund balance, June 30, 2014 $ 1,584,721 $ 429,287 $ 429,287 $ 1,155,434 Reconciliation to net position: Accrued claims and judgments $ (1,619,835) $ (35,114) comprehensive annual financial report - Pg 105 2014 supplementary information CITY OF ASHLAND, OREGON CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS BY SOURCE For the year ended June 30, 2014 Governmental funds capital assets: Land $ 12,367,578 Buildings and improvements 35,420,788 Improvements other than buildings 53,223,998 Machinery and equipment 5,733,044 Construction in progress 1,620,149 Total capital assets 108,365,557 Investments in governmental funds capital assets by source: General and capital projects funds 53,096,092 Special revenue funds 40,704,718 Leased to other agencies 14,564,747 Total investments in governmental funds capital assets $ 108,365,557 This schedule represents only the capital asset balances related to governmental funds before accumulated depreciation. Accordingly, the capital assets reported in Internal Service Funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as the appropriate business activity or governmental activity in the Statement of Net Assets. Pg 106 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS BY FUNCTION AND ACTIVITY For the year ended June 30, 2014 Improvements Machinery other than and Construction Function and Activity Land Buildings Buildings Equipment in Progress Total General government: Community development $ 985,235 $ 1,120,947 $ - $ 378,138 $ - $ 2,484,320 Public buildings 460,200 1,021,882 435,335 145,916 32,403 2,095,736 Leased to other agencies 253,000 8,744,018 3,957,949 1,609,780 - 14,564,747 Other - unclassified 2,660,200 2,035,844 1,026,811 256,116 284,554 6,263,525 Total general government 4,358,635 12,922,691 5,420,095 2,389,950 316,957 25,408,328 Public safety: Police 80,000 614,700 1,515,652 484,266 - 2,694,618 Fire 998,400 6,094,861 300,000 343,777 7,737,038 Total public safety 1,078,400 6,709,561 1,815,652 828,043 - 10,431,656 Highway and streets: Public thoroughfares 589,276 630,075 40,101,902 286,508 644,750 42,252,511 Total highways and streets 589,276 630,075 40,101,902 286,508 644,750 42,252,511 Airports 176,566 1,029,780 3,567,023 - 4,773,369 Culture and recreation 6,164,701 14,128,681 2,319,326 2,228,543 658,442 25,499,693 Total governmental funds capital assets $ 12,367,578 $ 35,420,788 $ 53,223,998 $ 5,733,044 $ 1,620,149 $ 108,365,557 This schedule represents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in Internal Service Funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as the appropriate business activity or governmental activity in the Statement of Net Assets . comprehensive annual financial report - Pg 107 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF BOND PRINCIPAL AND BOND INTEREST TRANSACTIONS For the year ended June 30, 2014 Bond Principal Transactions Original Outstanding Issue June 30, 2013 Issued General Obligation Bonds Ashland Fiber Network Bonds, issued August 11, 2004 15,500,000 1,505,000 interest at 3.70% to 6.02% **Re-funding Bonds, issued December 1, 2005 2,560,000 1,595,000 interest variable Water and Wastewater, Series 2009, issued May 15, 2009 1,000,000 800,395 interest at 4.95% Wastewater, issued October 13, 2010 15,440,000 12,020,000 interest at 2.00% to 4.00% **Fire Station #2, issued November 1, 2011 2,960,000 2,690,000 interest at 2.00% to 4.00% **Ashland Fiber Network Bonds, (Refinanced 2004) issued March 7, 2013 11,675,000 11,675,000 interest at 2.00% to 2.80% Water debt (Refinanced 2003), issued March 7, 2013 1,580,000 1,580,000 interest at 2.00% New Construction for Street, CIP,Water and Wastewater, issued March 7, 2013 4,765,000 4,765,000 interest at 2.00% to 2.50% Revenue Bonds Water, Series 2003, issued June 1, 2003 5,625,000 635,000 interest at 2.00% to 4.00% Electric, Series 2008, issued June 20, 2008 304,000 195,429 - interest at 3.8% to 6.01 % Water, DEQ loan 979,630 interest at 1.00% Wastewater, DEQ Loan 1,645,280 interest at 1.00% $ 61,409,000 $ 37,460,824 $ 2,624,910 Paid by Property Taxes Pg 108 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF BOND PRINCIPAL AND BOND INTEREST TRANSACTIONS For the year ended June 30, 2014 (continued) Bond Principal Transactions Interest Transactions Outstanding Outstanding Outstanding Matured Paid June 30, 2014 June 30, 2013 Matured Paid June 30, 2014 $ 730,000 $ 730,000 $ 775,000 $ - $ 61,259 $ 61,259 $ - 200,000 200,000 1,395,000 77,750 77,750 56,306 56,306 744,089 38,931 38,931 1,185,000 1,185,000 10,835,000 444,300 444,300 115,000 115,000 2,575,000 85,488 85,488 175,000 175,000 11,500,000 232,079 232,079 20,000 20,000 1,560,000 33,507 33,507 275,000 275,000 4,490,000 103,728 103,728 385,000 385,000 250,000 13,766 13,766 21,714 21,714 173,714 2,307 2,307 - 979,630 1,645,280 $ 3,163,020 $ 3,163,020 $ 36,922,713 $ $ 1,093,115 $ 1,093,115 $ comprehensive annual financial report - Pg 109 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS COLLECTED AND UNCOLLECTED FOR THE CITY For the year ended June 30, 2014 Add (Deduct) Discounts Deduct Taxes Add Levy Interest Interest and Taxes Uncollected Extended by Cancellations Tax Uncollected July 1, 2013 Assessor Adjustments Collections June 30, 2014 2012-13 $ - $ 10,453,597 $ (284,438) $ 9,827,617 $ 341,542 2011-12 397,456 (3,786) 217,699 175,971 2010-11 200,299 - 13,246 109,309 104,236 2009-10 99,620 14,718 79,339 34,999 2008-09 43,048 7,215 37,339 12,924 Prior years 44,954 - 11,045 20,866 35,133 $ 785,377 $ 10,453,597 $ (241,999) $ 10,292,169 $ 704,806 Taxes Collections to Uncollected June 30, 2014 June 30, 2014 Taxes receivable and tax collections classified by fund: Primary government: General Fund $ 9,776,499 $ 669,566 Debt Service Fund 515,618 35,240 Enterprise Funds: Water Fund 52 $ 10,292,169 $ 704,806 Pg 110 - city of ashland 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND BALANCES OF TAXES UNCOLLECTED FOR THE CITY for the year ended June 30, 2014 Reconciliation of tax collections by fund to tax revenues on the Generally Accepted Accounting Principles Tax Revenues Collections Other Taxes GAAP Basis Primary government: General Fund $ 9,776,499 $ 8,028,559 $ 17,805,058 Special Revenue Funds: Street Fund - 57,273 57,273 Debt Service Funds: Debt Service Fund 515,618 - 515,618 Capital Projects Fund: Capital Improvement Fund - 472,920 472,920 Enterprise Funds: Water Fund 52 - 52 Wastewater Fund - 1,891,678 1,891,678 $ 10,292,169 $ 10,450,430 $ 20,742,599 comprehensive annual financial report - Pg 111 2014 supplementary information CITY OF ASHLAND, OREGON SCHEDULE OF RECEIPTS, DISBURSEMENTS AND BALANCES ELECTED OFFICIALS For the year ended June 30, 2014 Cash Cash Balance Turnovers to Balance July 1, 2013 Receipts Treasurer State Other June 30, 2014 City Recorder/Treasurer $ 30,875,818 $ 62,574,894 $ - $ - $ 62,006,205 $ 31,444,507 Judge - 530,906 438,985 91,921 - 0 $ 30,875,818 $ 63,105,800 $ 438,985 $ 91,921 $ 62,006,205 $ 31,444,507 Pg 112 - city of ashland 2014 statistical section STATISTICAL SECTION Total Reporting Entity (Unaudited) comprehensive annual financial report - Pg 113 2014 statistical section F 7111, i.. Pg 114 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON STATISTICAL SECTION Unaudited This part of the City of Ashland's comprehensive annual financial report presents detailed information as a context for understanding this year's financial statements, notes, and supplementary information. This information has not been audited by the independent auditors. Financial Trends Page These tables contain trend information that may assist the reader in assessing the City's current 116-129 financial performance by placing it in historical perspective. Revenue Capacity These tables contain information that may assist the reader is assessing the viability of the 130-139 City's revenue sources. Debt Capacity These tables present information that may assist the reader in analyzing the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the 140-149 future. Economic and Demographic Information These tables offer economic and demographic indicators that are commonly used for financial 150-151 analysis that can help the reader understand the City's present and ongoing financial status. Operating Information These tables contain service and infrastructure indicators that can help the reader understand how the information in the City's financial statements relates to the services the City provides 152-159 and the activities it performs. Source: Unless otherwise noted, the information in these tables is derived from the annual financial reports for the City of Ashland. The City implemented GASB Statement No. 34 in fiscal year 2003, therefore, some of the tables presenting government-wide information include only eight years. comprehensive annual financial report - Pg 115 2014 statistical section CITY OF ASHLAND, OREGON STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES Last ten years For the year ended June 30, 2014 ASSETS 2014 2013 2012 2011 2010 Assets: Cash and cash equivalents $ 19,534,572 $ 17,585,953 $ 18,062,202 $ 12,769,637 $ 11,832,259 Receivables (net of allowance for uncollectibles) 3,471,767 3,688,713 3,462,383 4,085,185 2,647,744 Inventories 73,094 74,943 61,605 54,579 32,325 Internal balances (1,392,782) (1,122,695) (690,129) (354,295) (534,894) Restricted assets: Temporarily restricted: Cash and cash equivalents 1,149,616 1,140,881 976,265 802,870 755,885 Capital assets: Land 12,466,348 12,466,348 12,261,807 12,400,610 12,400,610 Buildings and improvements 35,739,298 22,389,683 19,563,238 19,563,238 19,563,238 Machinery and equipment 16,653,654 13,169,274 12,890,582 13,487,439 13,278,430 Infrastructure 53,668,418 49,724,924 48,193,897 44,589,519 44,299,409 Construction in progress 1,620,133 3,541,161 2,692,359 3,510,539 484,590 Accumulated depreciation (58,028,592) (48,437,198) (46,093,174) (44,589,333) (42,260,637) Total assets $ 84,955,526 $ 74,221,987 $ 71,381,035 $ 66,319,988 $ 62,498,959 Liabilities: Accounts payable and other current liabilities $ 7,116,594 $ 5,271,651 $ 4,811,345 $ 5,715,843 $ 3,190,369 Unearned revenue 155,091 130,897 382,895 393,592 417,042 Noncurrent liabilities: Due within one year 1,555,932 1,452,982 1,127,229 1,067,338 1,276,871 Due in more than one year 16,925,776 18,337,270 17,779,689 15,781,372 17,330,191 Total liabilities 25,753,393 25,192,800 24,101,158 22,958,145 22,214,473 Net position: Invested in capital assets, net of related debt 43,637,551 33,063,940 30,601,791 32,113,302 29,449,210 Restricted for: Asset forfeiture 28,897 14,579 224,361 187,864 129,510 TOT tourism 116,131 102,786 105,063 - Library Levy 142,497 System development 2,924,188 2,835,567 2,763,714 2,345,201 2,469,667 Debt service 794,695 785,823 982,650 762,199 CDBG restriction 33,801 33,801 33,798 34,424 - Perpetual care: nonexpendable 896,572 874,045 861,244 831,603 807,797 Unrestricted 10,627,801 11,421,432 11,709,533 7,744,386 6,666,013 Total net position $ 59,202,133 $ 49,029,187 $ 47,279,877 $ 43,361,843 $ 40,284,396 Pg 116 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES Last ten years For the year ended June 30, 2014 (continued) 2009 2008 2007 2006 2005 $ 9,453,086 $ 9,845,351 $ 10,922,900 $ 9,274,073 $ 9,123,663 2,668,694 2,444,054 2,530,776 2,353,604 2,354,558 36,193 59,984 36,173 31,621 42,894 (640,731) (1,304,641) (1,587,111) (1,319,579) (1,378,719) 1,066,850 1,240,543 542,190 451,672 428,719 12,400,610 9,829,360 9,829,360 8,559,612 8,287,911 19,563,238 19,563,238 19,563,238 19,563,238 30,138,810 13,130,505 14,380,378 13,183,769 12,405,182 11,771,045 43,579,697 42,249,665 42,121,600 41,047,189 15,986,209 340,422 673,643 143,017 798,324 9,744,570 (39,728,339) (38,631,224) (35,789,232) (33,506,950) (31,952,088) $ 61,870,225 $ 60,350,351 $ 61,496,680 $ 59,657,986 $ 54,547,572 $ 3,153,914 $ 2,672,369 $ 2,683,604 $ 2,590,134 $ 2,652,837 430,105 449,038 396,208 12,700 26,392 1,183,044 1,327,360 925,973 590,000 908,822 18,316,590 19,263,447 20,341,095 5,731,134 5,815,074 23,083,653 23,712,214 24,346,880 8,923,968 9,403,125 29,786,499 27,577,843 27,969,339 42,669,821 37,631,383 140,974 236,514 329,180 - - 2,363,441 2,146,609 1,930,458 1,663,317 1,537,765 1,072,785 1,246,509 479,262 459,095 423,842 788,753 771,948 749,918 719,429 702,629 4,634,120 4,658,714 5,691,643 5,222,356 4,848,828 $ 38,786,572 $ 36,638,137 $ 37,149,800 $ 50,734,018 $ 45,144,447 comprehensive annual financial report - Pg 117 2014 statistical section CITY OF ASHLAND, OREGON STATEMENT OF NET POSITION BUSINESS TYPE ACTIVITIES Last ten years For the year ended June 30, 2014 ASSETS 2014 2013 2012 2011 2010 Assets: Cash and cash equivalents $ 10,760,319 $ 9,732,516 $ 6,155,621 $ 6,743,304 $ 6,959,037 Receivables (net of allowance for uncollectibles) 3,493,316 5,255,513 2,545,430 2,408,196 2,307,864 Inventories 1,024,111 880,651 899,374 740,438 732,821 Deferred charges 488,135 607,054 725,973 844,892 966,228 Internal balances 1,392,782 1,122,695 690,129 354,295 534,984 Restricted assets: Capital assets: Land 1,880,637 1,880,637 1,880,637 1,880,637 1,880,637 Buildings and improvements 22,089,254 22,089,254 22,089,254 22,089,254 22,089,254 Machinery and equipment 1,169,663 1,059,798 894,352 1,072,204 875,928 nfrastructure 83,671,768 89,768,372 88,885,630 87,809,652 87,809,652 Construction in progress 3,069,144 4,033,297 3,453,267 3,335,467 2,538,176 Accumulated depreciation (48,811,228) (53,721,485) (49,710,027) (46,028,522) (42,247,672) Total assets $ 80,227,901 $ 82,708,302 $ 78,509,640 $ 81,249,817 $ 84,446,909 Liabilities: Accounts payable and other current liabilities $ 2,865,087 $ 2,798,666 $ 1,407,377 $ 1,591,542 $ 1,769,929 Accrued interest payable 98,772 107,357 105,621 113,296 121,211 Unearned revenue - - - Noncurrent liabilities: Due within one year 1,885,841 1,843,020 1,610,333 1,757,774 1,735,032 Due in more than one year 17,216,872 16,477,803 15,210,823 16,821,156 19,654,652 Total liabilities 22,066,572 21,226,846 18,334,154 20,283,768 23,280,824 Net position: Invested in capital assets, net of related debt 43,966,525 46,789,050 50,671,957 51,579,762 51,556,291 Restricted for: System development 3,786,696 3,606,339 3,621,447 3,395,974 3,646,949 Debt service 875,490 875,490 875,490 875,490 875,490 Unrestricted 9,532,618 10,210,577 5,006,592 5,114,823 5,087,355 Total net position $ 58,161,329 $ 61,481,456 $ 60,175,486 $ 60,966,049 $ 61,166,085 Pg 118 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON STATEMENT OF NET POSITION BUSINESS TYPE ACTIVITIES Last ten years For the year ended June 30, 2014 (continued) 2009 2008 2007 2006 2005 $ 6,993,295 $ 6,437,889 $ 9,836,733 $ 12,951,933 $ 15,066,503 2,227,713 2,190,239 2,105,403 2,203,826 2,057,466 810,073 881,530 806,047 799,588 851,200 1,098,448 1,215,668 1,340,389 1,721,312 1,819,860 640,731 1,304,641 1,587,111 1,319,579 1,378,719 1,880,637 1,880,638 1,880,638 1,945,107 1,945,107 22,089,254 21,782,187 21,782,187 21,782,188 23,113,448 823,580 823,581 673,607 636,103 675,297 84,636,277 84,636,278 81,141,248 80,305,280 79,057,892 4,620,579 3,981,724 5,156,412 2,998,341 4,472,229 (38,584,771) (35,041,272) (31,502,402) (28,803,335) (26,616,727) 87,235,816 90,093,103 94,807,373 97,859,922 103,820,994 $ 1,467,227 $ 1,571,810 $ 1,554,049 $ 1,678,775 $ 2,343,307 130,104 144,127 153,639 587,720 819,171 1,669,770 1,595,081 1,379,209 1,475,373 1,437,257 21,389,683 22,056,168 23,497,674 40,366,883 42,177,256 24,656,784 25,367,186 26,584,571 44,108,751 46,776,991 52,406,103 54,411,887 54,264,807 42,661,428 39,032,733 3,800,824 3,838,867 4,315,088 4,251,713 4,636,560 875,490 1,751,369 - 1,913,648 1,913,648 5,496,615 4,723,794 9,642,907 4,924,382 11,461,062 62,579,032 64,725,917 68,222,802 53,751,171 57,044,003 comprehensive annual financial report - Pg 119 2014 statistical section CITY OF ASHLAND, OREGON CHANGES IN NET POSITION GOVERNMENTAL ACTIVITIES Last ten years For the year ended June 30, 2014 Program Revenues: 2014 2013 2012 2011 2010 General government: Charges for services $ 2,022,814 $ 6,054,232 $ 6,915,050 $ 6,946,410 $ 6,336,870 Operating grants and contributions 252,742 199,701 290,097 19,793 18,890 Capital grants and contributions - - 99,591 1,428,253 196,058 Capital system development charges - - - 22,701 16,377 Public safety: Charges for services 1,412,785 1,722,410 1,525,601 1,551,370 1,551,370 Operating grants and contributions 180,422 77,257 37,537 189,248 95,570 Capital grants and contributions - - 3,060,434 - - Highways and streets: Charges for services 2,093,705 2,090,907 3,024,262 2,006,385 2,027,116 Operating grants and contributions - 620,913 - - - Capital grants and contributions - 868,543 - Capital system development charges - - 76,101 Parks and Recreation : Charges for Services 1,578,123 - Operating Grants and Contributions - Capital Grants and Contributions Capital System Development Charges - - - - - 7,540,591 10,765,420 15,821,115 12,164,160 10,318,352 Program Expenses: General government 4,921,674 7,269,820 6,086,034 5,963,977 4,813,802 Public safety 14,677,285 10,352,003 13,893,641 10,457,134 11,410,483 Highways and streets 5,420,004 3,080,513 3,923,526 3,650,817 2,893,462 Parks and Recreation 5,881,480 - - - - Interest on long-term debt 435,790 1,618,065 966,063 976,011 1,033,451 31,336,233 22,320,401 24,869,264 21,047,939 20,151,198 Net(Expense)Revenue: General government (2,646,118) (1,015,887) 1,218,704 2,453,180 1,721,639 Public safety (13,084,078) (8,552,336) (9,270,609) (8,716,516) (9,763,543) Highways and streets (3,326,299) (368,693) (30,721) (1,644,432) (942,447) Parks and Recreation (4,303,357) Interest on long-term debt (435,790) (1,618,065) (966,063) (976,011) (1,033,451) (23,795,642) (11,554,981) (9,048,689) (8,883,779) (10,017,802) General Revenues: Property taxes 10,216,080 5,783,168 5,416,909 5,093,848 4,821,809 Utility users tax 4,572,352 4,306,761 4,209,696 4,170,896 3,989,351 Users taxes 2,784,842 2,688,525 2,547,854 2,315,909 2,276,353 State subventions - unrestricted - - - - - Unrestricted interest earnings 186,146 179,794 173,648 117,112 134,142 Capital assets transfers - - - - - Miscellaneous 4,877,216 346,043 618,616 263,461 293,971 Gain (loss) on disposal of assets - - - - - Transfers: (90,000) Total general revenues and transfers 22,546,636 13,304,291 12,966,723 11,961,226 11,515,626 Change in net position (1,249,006) 1,749,310 3,918,034 3,077,447 1,497,824 Net position - beginning 60,541,139 47,279,877 43,361,843 40,284,396 38,786,572 Recognition of prior infrastructure - - - Net position - ending $ 59,292,133 $ 49,029,187 $ 47,279,877 $ 43,361,843 $ 40,284,396 Pg 120 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON CHANGES IN NET POSITION GOVERNMENTAL ACTIVITIES Last ten years For the year ended June 30, 2014 (continued) 2009 2008 2007 2006 2005 $ 5,084,158 $ 5,786,031 $ 5,058,193 $ 4,110,436 $ 4,453,046 3,641 2,122 35,144 141,500 358,309 3,991 178,186 17,377 299,171 948,845 18,375 48,308 67,014 105,193 154,200 1,487,673 1,524,229 1,600,538 1,556,909 1,769,625 114,188 98,302 182,281 - 71,245 - - 312,000 - 53,443 1,842,187 1,807,939 1,662,360 1,659,421 1,593,663 - - - - 1,243 - - 366,549 202,982 463,695 72,643 167,486 269,338 388,654 509,175 8,626,856 9,612,603 9,570,794 8,464,266 10,376,489 3,856,719 4,876,071 4,287,280 2,818,129 5,202,781 10,312,721 11,555,693 10,082,938 7,903,054 9,235,540 2,505,897 4,000,048 2,583,641 2,419,380 4,221,022 442,168 1,178,388 1,139,346 637,146 311,527 17,117,505 21,610,200 18,093,205 13,777,709 18,970,870 1,253,446 1,138,576 890,448 1,838,171 557,419 (8,710,860) (9,933,162) (7,988,119) (6,346,145) (7,341,227) (591,067) (2,024,623) (285,394) (168,323) (2,162,421) (442,168) (1,178,388) (1,139,346) (637,146) (311,527) (8,490,649) (11,997,597) (8,522,411) (5,313,443) (9,257,756) 4,391,088 4,170,062 3,557,262 2,970,566 2,658,995 3,888,747 3,945,382 2,345,323 2,323,390 2,277,178 2,013,026 1,899,320 1,952,810 1,784,302 1,753,477 - 247,357 1,486,776 1,817,175 1,360,724 127,224 444,557 406,964 256,648 146,041 - - (15,896,208) 1,425,346 - 218,999 779,133 1,085,266 617,542 288,060 10,639,084 11,485,811 (5,061,807) 11,194,969 8,484,475 2,148,435 (511,786) (13,584,218) 5,881,526 (773,281) 36,638,137 37,149,923 50,734,018 45,144,447 45,254,353 $ 38,786,572 $ 36,638,137 $ 37,149,800 $ 51,025,973 $ 44,481,072 comprehensive annual financial report - Pg 121 2014 statistical section CITY OF ASHLAND, OREGON CHANGES IN NET POSITION BUSINESS TYPE ACTIVITIES Last ten years For the year ended June 30, 2014 Program Revenues: 2014 2013 2012 2011 2010 Water: Charges for services $ 5,913,633 $ 5,547,560 $ 4,891,233 $ 4,250,255 $ 4,146,730 Capital grants and contributions 89,747 1,969,979 461,964 344,396 99,928 Capital system development charges 269,029 266,196 491,612 180,604 151,864 Wastewater: Charges for services 4,171,230 3,928,342 3,601,900 3,385,748 3,148,850 Capital system development charges 80,570 95,132 81,998 68,956 55,945 Electric: Charges for services 13,671,443 12,938,039 12,402,857 12,238,716 12,144,279 Operating grants and contributions 178,002 148,642 125,123 187,436 267,850 Telecommunications: Charges for services 1,929,101 1,896,106 1,931,126 1,944,758 1,818,789 26,302,755 26,789,996 23,987,813 22,600,869 21,834,235 Program Expenses: Water 6,852,085 7,581,708 5,256,110 5,260,907 4,599,205 Wastewater 74,752,007 3,846,640 5,035,171 4,300,986 5,223,619 Electric 15,825,968 13,613,715 13,673,739 12,516,992 12,585,218 Telecommunications 2,240,951 3,233,961 3,308,448 3,535,592 2,931,512 99,671,011 28,276,024 27,273,468 25,614,477 25,339,554 Net(Expense)Revenue: Water (579,676) 202,027 588,699 (485,652) (200,683) Wastewater (3,223,407) 176,834 (1,351,273) (846,282) (2,018,824) Electric (1,976,523) (527,034) (1,145,759) (90,840) (173,089) Telecommunications (311,850) (1,337,855) (1,377,322) (1,590,834) (1,112,723) (6,091,456) (1,486,028) (3,285,655) (3,013,608) (3,505,319) General Revenues: Property taxes - - - - - Users taxes 1,891,730 1,839,711 1,707,079 1,592,942 1,583,908 Unrestricted interest earnings 156,492 166,290 155,478 106,904 114,266 Capital assets transfers - - - - - Miscellaneous 723,106 785,997 632,532 1,113,726 394,199 Gain (loss) on disposal of assets - - - - - Transfers: - - - - - Total general revenues and transfers 2,771,328 2,791,998 2,495,089 2,813,572 2,092,373 Change in net position (3,320,128) 1,305,970 (790,566) (200,036) (1,412,946) Net position - beginning 61,481,457 60,175,486 60,966,052 61,166,088 62,579,034 Net position - ending $ 58,161,329 $ 61,481,457 $ 60,175,486 $ 60,966,052 $ 61,166,088 Pg 122 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON CHANGES IN NET POSITION BUSINESS TYPE ACTIVITIES Last ten years For the year ended June 30, 2014 (continued) 2009 2008 2007 2006 2005 $ 4,067,377 $ 3,780,193 $ 3,829,222 $ 4,092,206 $ 3,557,350 55,628 48,096 135,828 43,622 81,504 125,389 340,835 367,839 439,306 662,911 2,734,001 2,607,275 2,432,868 2,428,775 2,458,233 75,843 127,224 208,554 410,910 513,489 11,688,967 12,260,230 12,163,467 12,095,363 12,283,303 47,121 67,620 32,233 36,043 42,656 1,805,746 1,709,706 2,029,467 2,738,635 2,642,055 20,600,072 20,941,179 21,199,478 22,284,860 22,241,501 4,969,862 4,959,525 4,955,737 4,974,536 5,910,251 4,675,433 5,261,713 4,895,541 4,397,923 4,524,112 12,823,006 13,876,456 12,904,663 12,831,758 12,445,069 2,845,198 2,756,528 2,682,968 4,182,956 4,238,644 25,313,499 26,854,222 25,438,909 26,387,173 27,118,076 (721,468) (790,401) (622,848) (399,402) (1,608,486) (1,865,589) (2,527,214) (2,254,119) (1,558,238) (1,552,390) (1,086,918) (1,548,606) (708,963) (700,352) (119,110) (1,039,452) (1,046,823) (653,501) (1,444,321) (1,596,589) (4,713,427) (5,913,044) (4,239,431) (4,102,313) (4,876,575) - - 322 86,335 74,551 1,495,488 1,568,385 1,619,849 1,573,251 1,454,132 108,066 459,073 1,194,688 518,138 352,983 - - 15,896,208 (1,425,346) - 962,989 388,701 57,103 438,920 2,566,543 2,416,159 18,711,067 809,481 2,320,586 (2,146,884) (3,496,885) 14,471,636 (3,292,832) (2,555,989) 64,725,918 68,222,803 53,751,167 57,043,999 59,599,988 $ 62,579,034 $ 64,725,918 $ 68,222,803 $ 53,751,167 $ 57,043,999 comprehensive annual financial report - Pg 123 2014 statistical section CITY OF ASHLAND, OREGON FUND BALANCES, GOVERNMENTAL FUNDS Last ten years For the year ended June 30 General Fund: 2014 2013 2012 2011 Reserved for: Reserved for asset forfeiture $ 28,897 $ 14,579 $ 224,361 $ 187,864 Reserved for Transient Occupancy Tax - tourism 116,131 - 102,786 100,563 Reserved for Library 142,497 Committed for: Parking surcharge 287,725 273,965 247,725 232,497 Public art 78,154 82,849 73,011 28,113 Affortable housing 148,426 148,426 148,426 23,367 Grubbs case 22,230 22,230 21,230 Unassigned, reported in: General fund 3,731,916 3,863,212 3,692,190 2,875,653 Total general fund 4,555,976 4,405,261 4,509,729 3,448,057 Street Fund: Reserved for: Reserved for system development charges 2,415,789 2,376,109 2,352,315 1,980,292 Unassigned, reported in: Special revenue funds 2,321,834 2,041,013 690,977 256,008 Total street fund 4,737,623 4,417,122 3,043,292 2,236,300 Parks Fund: Reserved for: Reserved for system development charges - - - - Unassigned, reported in: Special revenue funds 583,394 Total parks fund 583,394 - - All Other Governmental Funds: Reserved for: Reserved for system development charges 508,399 459,458 411,399 364,909 Reserved for Community Development Grant Block funding 33,801 33,801 33,798 34,424 Reserved for perpetual care 896,572 874,045 861,244 831,603 Committed for: Committed for parks activities 332,482 Committed for airport activities 80,488 97,697 83,711 60,083 Committed for food and beverage 470,422 365,466 365,466 526,148 Committed for facilities 944,553 1,268,783 3,463,420 1,241,604 Committed for debt service 794,695 785,823 982,650 809,249 Unreserved, reported in: General fund - - - - Special revenue funds Capital projects funds - - - Total all other governmental funds 4,061,412 3,885,073 6,201,688 3,868,020 Total governmental funds $ 13,938,405 $ 8,290,334 $ 10,711,417 $ 7,316,077 Fund Balance Comparison Governmental Funds Last Ten Years $12,000,000 $10,000,000 $8,000,000 ❑ AI I Other Governmental Funds: $6,000,000 $4,000,000 ❑General Fund: $2,000,000 EEE 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Pg 124 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON FUND BALANCES, GOVERNMENTAL FUNDS Last ten years (continued) For the year ended June 30 2010 2009 2008 2007 2006 2005 $ 129,510 $ 140,974 $ 236,514 $ 329,180 $ $ 2,345,060 2,044,482 2,060,152 2,038,534 2,326,936 2,308,388 2,474,570 2,185,456 2,296,666 2,367,714 2,326,936 2,308,388 2,115,971 2,085,259 2,049,977 1,761,561 1,597,642 1,472,090 704,546 316,999 120,493 615,659 (133,598) (556,062) 2,820,517 2,402,258 2,170,470 2,377,220 1,464,044 916,028 353,696 348,746 96,632 168,896 65,675 65,675 807,796 788,752 771,948 749,918 719,429 702,629 762,199 1,072,785 1,246,509 559,263 459,095 423,842 32,160 19,979 6,891 (24,661) 130,126 2,942 1,969,977 1,154,776 951,989 714,329 586,843 635,387 3,925,828 3,385,038 3,073,969 2,167,745 1,961,168 1,830,475 $ 6,400,398 $ 5,570,494 $ 5,370,635 $ 4,535,459 $ 4,288,104 $ 4,138,863 comprehensive annual financial report - Pg 125 2014 statistical section CITY OF ASHLAND, OREGON CHANGES IN FUND BALANCES GOVERNMENTALFUNDS Last ten years For the year ended June 30 Revenues: 2014 2013 2012 2011 2010 Taxes $ 18,850,869 $ 13,661,986 $ 13,270,221 $ 12,978,142 $ 12,636,896 Fees, licenses and permits 667,416 583,679 1,340,102 482,275 474,379 Intergovernmental 2,847,336 2,500,297 2,878,726 3,642,108 2,103,165 Special assessments 59,483 41,048 43,542 17,867 3,292 Charges for services 10,835,737 6,319,508 6,520,263 6,315,976 5,799,929 Fines and forfeitures 183,732 196,535 168,305 183,239 183,266 Interest on investments 86,025 72,312 87,553 62,062 102,302 Miscellaneous 410,589 559,195 262,858 272,814 190,732 Total revenues 33,941,187 23,934,560 24,571,570 23,954,483 21,493,961 Expenditures: General government 9,381,555 4,820,740 4,631,724 4,300,262 4,278,859 Public safety 13,102,433 11,868,980 11,411,045 10,914,166 10,896,098 Highways and streets 1,974,219 2,529,333 2,422,483 3,778,610 2,361,523 Parks and recreation 6,854,314 Capital outlay 1,636,407 4,984,031 2,374,574 1,859,097 479,600 Debt service 1,842,374 2,754,188 2,172,846 2,562,886 2,229,718 Principal 1,320,000 1,732,744 1,196,086 1,563,425 1,183,203 Interest 522,374 1,021,444 976,760 999,461 1,046,515 Ratio of debt service to noncapital expenditures 5.88% 14.33% 11.77% 13.49% 12.71% Total expenditures 34,791,302 26,957,272 23,012,672 23,415,021 20,245,798 Excess (deficiency) of revenues over expenditures (850,115) (3,022,712) 1,558,898 539,462 1,248,163 Other financing sources (uses): Proceeds from debt issuance 1,767,459 - - - Interfund loans - 208,000 - (208,000) - Transfers in 750,927 41,461 203,105 997,349 469,360 Transfers out (840,927) (41,461) (203,105) (997,349) (469,360) Total other financing sources (uses) (90,000) 1,975,459 (208,000) - Net change in fund balance $ (940,115) $ (1,047,253) $ 1,558,898 $ 331,462 $ 1,248,163 Pg 126 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON CHANGES IN FUND BALANCES GOVERNMENTALFUNDS Last ten years For the year ended June 30 (continued) 2009 2008 2007 2006 2005 $ 11,790,772 $ 11,204,876 $ 10,620,715 $ 9,454,799 $ 9,057,868 768,451 886,644 847,665 1,106,317 1,489,379 1,630,055 1,848,914 2,606,832 2,168,873 3,252,504 25,587 67,195 108,864 360,860 222,408 5,732,687 5,594,106 4,564,898 3,817,938 4,165,663 156,092 150,346 169,558 137,460 133,170 97,379 330,413 310,478 197,960 112,531 164,995 787,159 719,478 554,076 62,546 20,366,018 20,869,653 19,948,488 17,798,283 18,496,069 3,982,889 4,114,305 3,423,269 3,081,984 3,317,996 10,701,354 10,578,525 10,227,177 9,152,421 8,630,755 2,298,680 2,341,178 2,245,609 2,191,178 2,079,150 1,502,763 1,355,293 1,359,308 1,889,998 2,403,697 2,363,685 1,852,049 1,622,412 820,218 846,573 1,277,584 725,753 533,630 523,769 497,493 1,086,101 1,126,296 1,088,782 296,449 349,079 13.92% 10.87% 10.21% 5.69% 6.03% 20,849,371 20,241,350 18,877,775 17,135,799 17,278,171 (483,353) 628,303 1,070,713 662,484 1,217,898 915,000 - - 2,761,180 - - - 89,818 - - 328,173 336,253 936,934 347,780 154,360 (328,173) (336,253) (936,934) (347,780) (154,360) 915,000 - 89,818 2,761,180 - $ 431,647 $ 628,303 $ 1,160,531 $ 3,423,664 $ 1,217,898 comprehensive annual financial report - Pg 127 2014 statistical section CITY OF ASHLAND, OREGON FUND BALANCE COMPARISON Last ten years For the year ended June 30 2014 2013 2012 2011 2010 Fund Balances Adopted Adopted Adopted Adopted Adopted City Component General Fund $ 2,594,256 $ 1,563,870 $ 1,729,188 $ 1,484,490 $ 1,332,508 Community Development Block Grant Fund - (34,424) - - - Reserve Fund 336,910 1,018,502 869,172 151,500 215,000 Street Fund 1,403,337 1,669,993 2,205,420 2,199,998 1,447,363 Airport Fund 34,564 99,276 44,387 10,804 9,024 Capital Improvements Fund 1,858,486 545,638 1,828,450 1,493,676 2,137,061 Debt Service Fund 637,043 949,626 1,020,546 790,646 1,149,113 Water Fund 3,575,115 2,383,044 1,121,531 4,302,000 836,814 Wastewater Fund 2,415,670 2,235,859 233,204 2,328,958 3,020,769 Electric Fund 1,012,411 1,077,114 1,091,591 1,387,036 649,494 Telecommunications Fund 210,594 153,998 339,464 281,732 325,135 Central Services Fund 754,268 32,508 10,026 70,593 12,531 Insurance Services Fund 622,602 477,568 646,302 394,466 543,266 Health Benefits Fund 348,359 Equipment Fund 1,233,835 2,553,013 1,124,500 88,202 1,322,161 Cemetery Trust Fund 912,244 892,603 852,797 826,753 812,948 Total city component 17,949,694 15,618,188 13,116,578 15,810,854 13,813,187 Parks Component Parks and Recreation Fund 583,396 1,290,439 1,703,840 1,409,225 1,450,910 Youth Activities Levy Fund - - - - 10,591 Parks Capital Improvements Fund 270,032 242,067 193,504 195,991 287,239 Total parks component 853,428 1,532,506 1,897,344 1,605,216 1,748,740 Total budget $ 18,803,122 $ 17,150,694 $ 15,013,922 $ 17,416,070 $ 15,561,927 2014 2013 2012 2011 2010 Fund Balances Actual Actual Actual Actual Actual City Component General Fund $ 3,719,809 $ 3,385,681 $ 3,495,819 $ 2,938,556 $ 2,474,570 Community Development Block Grant Fund 33,801 33,801 33,798 34,424 37,424 Reserve Fund 336,167 1,019,580 1,013,910 509,502 148,072 Street Fund 4,737,624 4,417,121 3,043,292 2,236,300 2,820,517 Airport Fund 80,488 116,697 83,710 60,083 32,160 Capital Improvements Fund 1,923,374 2,094,707 4,449,285 2,132,661 2,138,176 Debt Service Fund 1,159,490 1,150,618 982,649 809,248 762,199 Water Fund 6,273,413 6,437,576 2,708,910 2,212,401 1,851,885 Wastewater Fund 4,271,386 4,290,774 2,794,806 3,250,111 3,496,009 Electric Fund 1,899,104 2,327,540 2,418,099 2,476,294 2,054,733 Telecommunications Fund 479,997 587,624 586,943 517,916 953,315 Central Services Fund 870,190 853,280 984,410 491,546 266,820 Insurance Services Fund 1,584,721 848,857 761,552 605,943 640,110 Health Benefits Fund 169,366 Equipment Fund 2,540,413 3,357,663 2,479,905 1,858,969 1,760,305 Cemetery Trust Fund 896,572 874,045 861,243 831,602 870,797 Total city component 30,975,915 31,795,564 26,698,331 20,965,556 20,307,092 Parks Component Parks and Recreation Fund 583,396 1,783,433 2,242,227 2,214,031 1,787,781 Youth Activities Levy Fund - - 20,326 9,899 22,534 Parks Capital Improvements Fund 332,482 387,632 449,131 432,866 252,864 Total parks component 915,878 2,171,065 2,711,684 2,656,796 2,063,179 Total actual $ 31,891,793 $ 33,966,629 $ 29,410,015 $ 23,622,352 $ 22,370,271 Pg 128 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON FUND BALANCE COMPARISON Last ten years For the year ended June 30 (continued) 2009 2008 2007 2006 2005 Adopted Adopted Adopted Adopted Adopted $ 1,190,469 $ 1,127,520 $ 1,047,023 $ 1,051,983 $ 936,568 11,799 - - - - 3,634,173 1,223,241 6,308,766 733,073 1,976,046 31,727 2,942 12,382 37,660 42,315 1,753,706 807,222 1,680,528 3,609,193 389,839 1,166,758 601,085 148,902 569,205 695,484 3,041,343 2,804,328 5,401,307 2,158,888 3,524,870 4,069,588 5,539,312 3,035,439 3,899,968 4,463,795 2,067,545 1,677,245 1,185,892 1,405,027 1,812,094 396,498 362,716 217,611 70,187 954,723 106,614 82,987 92,793 10,000 113,758 977,803 908,275 492,028 417,936 471,538 1,252,898 508,357 618,799 856,499 965,561 790,918 774,453 735,212 699,876 681,408 20,491,839 16,419,683 20,976,682 15,519,495 17,027,999 1,190,614 877,245 667,250 993,667 965,822 - 216,893 - 125,306 2,166 107,590 26,926 44,866 112,569 169,965 1,298,204 1,121,064 712,116 1,231,542 1,137,953 $ 21,790,043 $ 17,540,747 $ 21,688,798 $ 16,751,037 $ 18,165,952 2009 2008 2007 2006 2005 Actual Actual Actual Actual Actual $ 2,185,456 $ 2,296,666 $ 2,367,714 $ 2,326,936 $ 2,093,388 69,618 44,705 12,033 4,599 (8,492) 2,402,258 2,170,470 2,377,220 1,464,044 1,186,028 99,978 86,891 55,339 54,874 122,942 1,433,904 1,003,916 656,315 803,171 924,554 1,072,785 1,246,509 559,263 459,095 423,842 2,323,768 1,865,418 3,241,590 6,179,246 6,458,230 3,710,771 3,764,972 4,862,001 5,301,598 5,664,182 1,642,543 1,469,744 2,178,995 2,116,269 2,527,430 929,945 869,719 963,896 518,687 898,750 161,163 368,086 726,743 439,010 185,137 696,071 1,138,699 974,450 1,060,790 1,036,331 844,150 1,329,672 1,750,852 1,510,170 1,489,055 788,753 771,948 749,918 719,429 702,629 18,361,163 18,427,415 21,476,329 22,957,918 23,704,006 1,379,752 1,201,443 1,180,912 1,507,367 1,621,679 27,356 160,591 72,671 35,374 103,733 166,991 263,343 195,390 165,326 207,375 1,574,099 1,625,377 1,448,973 1,708,067 1,932,787 $ 19,935,262 $ 20,052,792 $ 22,925,302 $ 24,665,985 $ 25,636,793 comprehensive annual financial report - Pg 129 2014 statistical section CITY OF ASHLAND, OREGON ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last ten years - Unaudited Taxable ratio Fiscal Year (True Cash Ended Property Value to June 30, Real Property Mobile Home Personal (1) Utilities Total Tax Rate Assessed) 2014 $ 2,154,231,164 $ 6,060,576 $ 36,756,490 $ 24,858,300 2,221,906,530 $ 4.61 72.3% 2013 2,079,286,927 6,060,300 36,739,550 26,166,700 2,148,253,477 4.63 73.3% 2012 2,055,111,118 6,318,010 40,939,090 26,290,929 2,128,659,147 4.71 67.7% 2011 2,000,563,826 5,956,110 41,057,580 24,422,710 2,072,000,226 4.60 61.0% 2010 1,937,303,620 5,881,825 40,133,110 24,860,300 2,008,178,855 2.10 53.0% 2009 1,871,896,544 5,744,350 44,282,840 21,243,990 1,943,167,724 4.42 48.4% 2008 1,802,639,910 5,762,080 44,536,050 22,372,000 1,875,310,040 5.73 46.9% 2007 1,700,020,579 5,498,040 40,468,280 20,509,400 1,766,496,299 5.56 46.6% 2006 1,610,148,502 5,301,570 38,820,610 20,344,260 1,674,614,942 5.25 51.3% 2005 1,524,210,039 5,108,410 38,419,400 27,532,841 1,595,270,690 5.26 56.4% All property is evaluated once every six years as required by state statute (1) Includes non-profit housing Source: Jackson County Assessor tax roll property values Real Property Value and Taxable Ratio Last Ten Years $2,500,000,000 80.0% 70.0% $2,000,000,000 60.0% $1,500,000,000 50.0% 40.0% $1,000,000,000 30.0% 20.0% $500,000,000 10.0% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 =Total Property Taxable Ratio Pg 130 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS (Per $1,000 of Assessed Valuation) Last ten years - Unaudited City of City of Ashland City of City of City of Fiscal Year Ashland Local Ashland Ashland Ashland Net General Net School Ended Permanent Option Bonded Component Total Tax Government Tax Support June 30, rate Levies Debt Unit Rate Rate Tax Rate Total 2014 $ 4.20 $ 0.19 $ 0.22 4.62 7.09 8.34 15.42 2013 2.10 0.19 0.24 2.09 4.62 7.16 8.38 15.54 2012 2.10 0.19 0.24 2.09 4.63 7.18 8.38 15.56 2011 2.10 0.19 0.32 2.09 4.70 7.25 7.14 14.39 2010 2.10 0.19 0.20 2.09 4.59 7.17 7.14 14.31 2009 1.99 0.13 0.21 2.09 4.42 6.90 8.42 15.31 2008 1.85 0.20 0.20 3.47 5.72 8.12 6.90 15.01 2007 1.88 - 0.21 3.47 5.56 8.30 6.37 14.67 2006 1.62 0.16 3.47 5.26 8.01 6.28 14.29 2005 1.47 0.31 3.47 5.26 8.22 6.28 14.50 (1) Oregon Measure 47 combined with Jackson County tax rate since 1997-98 (2) Rogue Community College Source: Jackson County Assessor and Tax Collector City of Ashland Property Tax Rate Compared to Total Rate per Thousand $16.00 $8.00 I~~~~www wwwwwwwww~ ~~~~~~w w~w~w ww,~. wwwwwww„www„www„wwwwwwwwwwwwwwwwwwwwwwwwww $4.00 $2.00 $1.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total °°°*°°'°CITY OFASHLAND, OREGON comprehensive annual financial report - Pg 131 2014 statistical section CITY OF ASHLAND, OREGON PROPERTY VALUE AND NEW CONSTRUCTION HISTORY Last ten years - Unaudited Commercial Construction Residential Construction Fiscal Year Property Number Number Ended June 30, Value (1) of Units Value of Units Value 2014 $ 2,262,503,440 9 $ 4,770,334 50 $ 10,032,795 2013 2,079,286,927 8 1,632,075 56 11,568,784 2012 2,128,659,147 10 34,221,808 33 6,123,270 2011 2,072,000,226 11 1,989,421 47 7,531,926 2010 1,937,303,620 4 611,406 89 14,985,434 2009 1,943,167,724 15 1,812,635 21 5,108,099 2008 1,875,310,040 23 16,269,379 82 8,258,031 2007 1,766,496,299 26 8,086,124 98 15,270,781 2006 1,674,614,942 19 20,988,810 160 24,336,944 2005 1,595,270,690 42 18,426,846 188 35,576,749 (1) Property value is assessed valuation Source: City of Ashland, Community Development Department Jackson County Assessor Commercial and Residential Construction Last Ten Years $40,000,000 $30,000,000 $20,000,000 $10,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ® Commercial Construction Residential Construction Pg 132 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON FOOD AND BEVERAGE TAX REVENUES BY FUND (amounts expressed in thousands) Last ten years - Unaudited Fiscal Year Capital Central Ended June 30, Improvement (1) Wastewater (2) Service Total (3) Cumulative 2014 $ 473 $ 1,892 $ 48 $ 2,413 $ 33,770 2013 460 1,840 47 2,347 31,357 2012 427 1,707 47 2,181 29,010 2011 398 1,593 31 2,022 26,829 2010 396 1,584 - 1,980 24,807 2009 374 1,495 - 1,869 22,827 2008 392 1,567 - 1,959 20,958 2007 395 1,594 - 1,989 18,999 2006 370 1,481 - 1,851 17,010 2005 364 1,454 - 1,818 15,159 (1) Dedicated to acquisition of open space parkland (2) Derived from wastewater enterprise operations (3) Tax enacted July 1, 1993 Food and Beverage Tax Revenues by Fund Last Ten Years $2,000 $1,800 $1,600 $1,400 $1,200 v, $1,000 0 $800 $600 $400 $200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ®I Capital Improvement ❑ Wastewater ■ Central Service comprehensive annual financial report - Pg 133 2014 statistical section CITY OF ASHLAND, OREGON PRINCIPAL PROPERTY TAXPAYERS Current and ten years ago Percentage 2014 of Total Assessed Assessed Taxpayers Type of Business Valuation Valuation Ronald L. Deluca Housing $ 10,725,940 0.45% Avista Corp. Utility 9,774,000 0.41% Ashland Community Hopsital Hospital 8,753,390 0.37% Pacific Financial , Inc. Financial 6,799,150 0.29% Charter Communication Retail 5,496,000 0.23% Beverly Rydbom Retail 5,646,020 0.24% Skylark Assisted Living Assisted Care 5,549,660 0.24% Bard's Inn Motel 5,312,560 0.23% Plaza Hospitality Motel 5,174,180 0.22% Centurylink Utility 5,334,800 0.23% All other 2,291,651,106 97.09% Total $ 2,360,216,806 100.00% 2005 of Total Assessed Assessed Taxpayers Type of Business Valuation Valuation Qwest, Inc Utility $ 18,347,700 1.15% Windmill Inns of America, Inc. Motels 9,494,780 0.60% Ronald L. Deluca Housing 7,732,200 0.48% Mountain Meadows Housing 5,979,500 0.37% Avista Corp. Utility 5,164,000 0.32% Financial Pacific, Inc. Housing 4,327,280 0.27% Rydbom, Michael and Beverly Retail 4,268,270 0.27% Skylark Assisted Living Housing 4,071,850 0.26% Bard's Inn Motels 3,986,320 0.25% Summit Investment Retail 3,649,510 0.23% All other 1,528,249,280 95.80% Total $ 1,595,270,690 100.00% Source: Jackson County Assessor Pg 134 - city of ashland 2014 statistical section 2014 Principal Property Tax Payers Financial Motel 10% Assisted Care 15% 8% Retail 16% Utility Hospital 22% 13% Housing 16% 2005 Principal Property Tax Payers retail 12% Utility 35% YZ'JCxS:ltU4" - Housing 33% Motels 20% comprehensive annual financial report - Pg 135 2014 statistical section CITY OF ASHLAND, OREGON GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE (amounts expressed in thousands) Last ten years - Unaudited Other Franchise Fiscal Year Combined Electric Utility and Transient Food and Business Ended Property Utility Users Privilege Occupancy Beverage License June 30, Taxes Franchise (1) Tax(l) Taxes Tax Tax 2 Tax Total 2014 $ 10,268 $ 1,373 $ 2,895 $ 1,530 $ 2,091 $ 473 $ 208 $ 18,838 2013 9,874 1,311 2,704 1,518 2,009 460 208 18,084 2012 9,759 1,251 2,627 1,436 1,911 427 202 17,613 2011 9,246 1,228 2,603 1,591 1,918 398 197 17,181 2010 8,896 1,232 2,557 1,552 1,880 396 197 16,710 2009 8,313 1,207 2,468 1,567 1,639 374 201 15,769 2008 10,573 1,170 2,375 1,362 1,508 392 201 17,581 2007 9,378 1,119 2,345 1,544 1,559 395 129 16,469 2006 8,801 1,111 2,323 1,399 1,414 370 205 15,623 2005 8,061 1,106 2,277 1,101 1,390 364 155 14,454 (1) Derived from city-owned electric utility operations (2) Tax enacted July 1, 1993 GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 * Electric Utility and Utility Users Tax * City Property Tax Transient Occupancy and Food and Beverage Tax Other Taxes Pg 136 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON PROPERTY TAX LEVIES AND COLLECTIONS Last ten years - Unaudited Fiscal Delinquent Percent of Percent of Year Percent of Tax Total Tax Outstanding Delinquent Ended Total Tax Levy Current Tax Levy Collections Total Tax Collections to Delinquent Taxes to Tax June 30, (1) Collections (2) Collected (2)(3) Collections Tax Levy Taxes Levy 2014 $ 10,453,597 $ 9,799,116 93.7% $ 468,669 $ 10,267,785 98.2% $ 704,806 6.7% 2013 10,119,532 9,440,360 93.3% 394,679 9,835,039 97.2% 785,377 7.8% 2012 9,997,229 9,322,678 93.3% 436,198 9,758,876 97.6% 755,098 7.6% 2011 9,470,164 8,885,987 93.8% 359,767 9,245,754 97.6% 773,714 8.2% 2010 9,176,778 8,511,729 92.8% 384,362 8,896,091 96.9% 699,122 7.6% 2009 8,616,000 7,981,337 92.6% 331,445 8,312,782 96.5% 684,345 7.9% 2008 10,609,706 10,273,879 96.8% 298,774 10,572,653 99.7% 636,512 6.0% 2007 9,797,262 9,142,734 93.3% 235,560 9,378,294 95.7% 609,308 6.2% 2006 8,803,680 8,428,550 95.7% 372,526 8,801,076 100.0% 642,298 7.3% 2005 8,399,000 7,753,164 92.3% 307,911 8,061,075 96.0% 535,484 6.4% (1) Includes levy within the tax base, levy for bonded indebtedness, miscellaneous assessment payments in lieu of tax, and tax levy shared offsets (2) Includes adjustments, rounding and discounts (3) Delinquent taxes collected represent accumulative amounts for the specific fiscal year PROPERTYTAX LEVIES AND COLLECTIONS $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 2006 2006 2007 2008 2009 2010 2011 2012 2013 2014 M Total Tax Levy ❑ Total Tax Collection comprehensive annual financial report - Pg 137 2014 statistical section CITY OF ASHLAND, OREGON ELECTRIC UTILITY USAGE IN KILOWATT HOURS (kWh) Last ten years - Unaudited 2014 2013 2012 2011 Electric: Commercial 57,351,533 58,984,152 55,628,874 55,617,369 Governmental 19,552,546 19,934,831 20,136,246 20,539,286 Municipal 6,410,372 5,978,193 6,164,885 6,107,945 Residential 91,309,827 89,637,162 91,550,691 94,402,343 Electric usage total 174,624,278 174,534,338 173,480,696 176,666,943 Total electric revenue $ 13,536,923 $ 12,575,449 $ 12,305,176 $ 12,126,401 Average consumption rate per kWh $ 0.078 $ 0.072 $ 0.071 $ 0.069 BPA surcharge revenue NA NA NA NA Average surcharge per consumed kWh (1) NA NA NA NA Electric Utility Average Rate History per kWh $0.09 $0.08 ■ $0.07 ■ $0.06 a a a $0.05 $0.04 $0.03 $0.02 $0.01 A . . . $ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Average consumption rate per kWh --A--Average surcharge perconsumed kWh (1) (1) Council implemented the surcharge due to increasing costs and changes in the wholesale power industry in FY 2002 2014 2013 2012 2011 Demand: Commercial 158,829 175,675 164,566 162,175 Governmental/Municipal 67,481 67,388 71,111 68,480 Demand usage total 226,310 243,063 235,677 230,655 Total demand revenue $ 519,458 $ 614,862 $ 533,947 $ 515,481 Average demand rate per kWh $ 2.295 $ 2.530 $ 2.266 $ 2.235 Pg 138 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON ELECTRIC UTILITY USAGE IN KILOWATT HOURS (kwh) Last ten years - Unaudited (continued) 2010 2009 2008 2007 2006 2005 56,996,490 56,893,914 59,730,031 59,796,009 58,939,938 58,199,994 19,467,344 18,283,476 18,328,996 16,771,812 17,684,660 17,522,640 6,407,172 6,288,095 6,231,719 5,911,482 5,798,328 6,015,412 93,634,626 91,638,620 95,853,685 91,324,747 90,977,982 89,045,820 176, 505,632 173,104,105 180,144,431 173, 804,050 173,400,908 170, 783,866 $ 11,931,379 $ 11,028,224 $ 11,638,234 $ 10,118,284 $ 9,978,512 $ 9,779,099 $ 0.068 $ 0.064 $ 0.065 $ 0.058 $ 0.058 $ 0.057 NA NA $ 1,016,152 $ 1,123,490 $ 1,133,645 $ 1,266,655 NA NA $ 0.006 $ 0.006 $ 0.007 $ 0.007 Average Demand Rate per kwh $3.000 $2.500 $2.000 $1.500 $1.000 $0.500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 --*--Average demand rate per kWh 2010 2009 2008 2007 2006 2005 151,072 147,155 159,430 164,228 160,133 156,388 63,445 70,242 65,931 69,856 68,828 67,529 214,517 217,397 225,361 234,084 228,961 223,917 $ 475,273 $ 476,024 $ 473,565 $ 490,039 $ 463,244 $ 453,221 $ 2.216 $ 2.190 $ 2.101 $ 2.093 $ 2.023 $ 2.024 comprehensive annual financial report - Pg 139 2014 statistical section CITY OF ASHLAND, OREGON RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Last ten years - Unaudited Fiscal Year Ended Percentage Gross Bonded Debt Service Fund June 30, Population (1) Change Assessed Value (2) Debt (3) Monies Available 2014 20,366 0.20% $ 2,262,503,440 $ 37,462,187 $ 1,149,616 2013 20,325 -5.29% 2,186,388,026 38,111,076 1,140,881 2012 21,460 6.79% 2,128,659,147 35,728,075 976,265 2011 20,095 -6.56% 2,072,000,226 35,331,935 804,633 2010 21,505 0.09% 2,008,178,855 39,708,269 762,199 2009 21,485 -1.44% 1,943,167,724 42,560,804 1,072,785 2008 21,800 1.73% 1,875,310,040 44,138,466 1,246,509 2007 21,430 2.63% 1,766,496,299 46,090,591 479,262 2006 20,880 1.41% 1,674,614,942 49,105,540 459,095 2005 20,590 0.78% 1,595,270,690 48,595,783 423,842 Source: (1) Center for Population Research and Census, Portland State University (2) Jackson County Assessor tax roll property value records (3) City of Ashland financial records - includes all long-term general obligation debt, including general obligation special assessments, general obligation bonds, and general obligation warrants. (4) Includes general obligation debt paid from Hospital Enterprise Fund operations, Utility Services Revenue Fund operations, and special assessment payments from benefited property owners. Pg 140 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Last ten years - Unaudited (continued) Enterprise Fund Debt Payable for Enterprise Net General Obligation Ratio of Net Bonded Debt Net Bonded Debt Monies Available Revenues (4) Bonded Debt to Assessed Value per Capita $ 875,490 $ 19,102,713 $ 33,874,089 1.50% $ 1,663.27 875,490 18,320,823 36,630,395 1.68% 1,802.23 875,490 16,821,156 31,584,013 1.48% 1,471.76 875,490 18,578,931 31,095,074 1.50% 1,547.40 875,490 21,389,684 17,898,670 0.89% 832.30 875,490 23,059,454 18,970,000 0.98% 882.94 1,751,369 38,652,249 18,840,000 1.00% 864.22 - 40,456,883 19,425,000 1.10% 906.44 1,913,648 41, 842,256 19, 770, 000 1.18% 946.84 1,913,648 43,614,513 20,045,000 1.26% 973.05 Net Bonded Debt Per Capita Last Ten Years $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 comprehensive annual financial report - Pg 141 2014 statistical section CITY OF ASHLAND, OREGON RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last ten years - Unaudited Total General Ratio of Debt Service to Fiscal Year Ended Total Debt Governmental General Governmental June 30, Principal Interest Service (1) Expenditures Expenditures 2014 $ 1,320,000 $ 522,374 $ 1,842,374 $ 32,948,928 5.6% 2013 1,000,000 906,689 1,906,689 26,957,272 7.1% 2012 1,105,000 916,434 2,021,434 23,012,672 8.8% 2011 905,000 904,149 1,809,149 23,415,021 7.7% 2010 865,000 943,917 1,808,917 20,245,798 8.9% 2009 695,000 976,738 1,671,738 20,849,371 8.0% 2008 415,000 885,470 1,300,470 20,241,350 6.4% 2007 205,000 34,836 239,836 18,877,775 1.3% 2006 195,000 62,360 257,360 17,302,206 1.5% 2005 185,000 187,607 372,607 17,278,171 2.2% (1) Includes General, Special Revenue Funds, and Debt Service Funds Ratio of Debt Service to General Governmental Expenditures Last Ten Years 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Pg 142 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON PLEDGED REVENUE COVERAGE WATER FUND Last ten years - Unaudited Fiscal Year Future Rate Net Revenues Debt Service Requirements (4) Ended June Gross Operating Stabilization Available for 30, Revenues Expenses Offset (3) Debt Service Principal Interest Total Coverage 2014 $ 6,322,142 $ 6,602,426 $ $ (280,284) $ 584,414 $ 129,093 $ 713,507 -0.39 2013 8,280,514 6,520,293 1,760,221 412,533 82,471 495,004 3.56 2012 5,745,624 4,540,937 1,204,687 580,742 127,436 708,178 1.70 2011 4,806,603 3,597,288 1,209,315 394,036 135,574 529,610 2.28 2010 4,455,767 3,439,267 1,016,500 345,000 112,206 457,206 2.22 2009 4,552,624 2,819,395 1,733,229 335,000 120,288 455,288 3.81 2008 4,274,376 3,499,545 774,831 335,000 127,406 462,406 1.68 2007 4,651,122 3,115,885 1,535,237 325,000 133,191 458,191 3.34 2006 4,531,503 2,591,347 1,940,156 320,000 140,456 460,456 4.21 2005 4,428,981 (1) 1,825,395 (2) 2,603,586 320,000 146,856 466,856 5.58 (1) Total Operating Revenues, including System Development Charges (2) Total operating expenses, not including Interfund Loan, Capital Outlay, Existing Debt, and Franchise Taxes paid (3) Gross revenues in excess of those necessary to meet current debt service obligations by covenant available to assure coverage in future fiscal periods (4) Includes Revenue Bond principal and interest amounts transferred to registered paying agent irrespective of actual bond maturities comprehensive annual financial report - Pg 143 2014 statistical section This page left blank intentionally Pg 144 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON RATIOS OF OUTSTANDING DEBT BY TYPE Last ten years Governmental Activities Notes and Contracts Fiscal Year General Percent of Ended Obligation Assessed Promissory OECDD (1) Per June 30, Bonds Value Notes Loans Capita (2) 2014 17,820,000 0.79% $ 539,474 $ - $ 901.48 2013 19,140,000 0.88% 650,253 - 973.69 2012 17,550,000 0.82% 681,780 675,138 853.51 2011 15,695,000 0.76% 354,502 703,502 833.69 2010 16,600,000 0.83% 488,197 1,230,388 851.83 2009 17,465,000 0.90% 622,313 1,412,321 907.59 2008 18,160,000 0.97% 740,079 1,587,138 939.78 2007 18,575,000 1.05% 883,775 1,754,932 989.91 2006 18,625,000 1.11% 1,066,510 1,920,792 1,035.07 2005 18,265,000 1.14% 1,200,270 2,079,804 1,046.39 Business - Type Activities Fiscal Year General Percent of Ended Obligation Assessed Revenue Bonds DEQ (3) Per June 30, Bonds Value and Notes Loan Capita (2) 2014 $ 16,054,089 0.71% $ 3,048,624 $ $ 937.97 2013 17,490,395 0.80% 830,429 901.39 2012 14,034,014 0.66% 2,787,143 783.84 2011 15,400,074 0.74% 3,178,857 924.55 2010 1,298,697 0.06% 3,560,571 16,530,415 994.64 2009 1,505,000 0.08% 3,927,286 17,627,168 1,073.28 2008 680,000 0.04% 4,284,000 18,687,249 1,084.92 2007 850,000 0.05% 4,315,000 19,711,883 1,160.84 2006 1,145,000 0.07% 4,640,000 20,702,256 1,268.55 2005 1,795,000 0.11% 4,960,000 21,659,513 1,380.02 Total Outstanding Debt Fiscal Year Total Debt as a Ended Outstanding Percentage of June 30, Debt Personal Income (4) Personal Income 2014 $ 37,462,187 unavailable NA 2013 38,111,077 unavailable NA 2012 35,728,075 unavailable NA 2011 35,331,935 unavailable NA 2010 39,708,269 unavailable NA 2009 42,559,088 391,431,000 10.87% 2008 44,138,466 430,978,000 10.24% 2007 46,090,591 463,652,000 9.94% 2006 48,099,558 461,001,000 10.43% 2005 49,959,587 411,308,000 12.15% (1) OECDD - Oregon Economic and Community Development Department (2) Per Capita is calculated using the total debt for the category divided by population shown on Ratio of Net General Obligation Bonded Debt to Assessed Value Schedule (3) DEQ - Oregon Department of Environmental Quality (4) Oregon Department of Revenue Personal Income Tax Statistics comprehensive annual financial report - Pg 145 2014 statistical section CITY OF ASHLAND, OREGON LEGAL DEBT MARGIN Last ten years For the year ended June 30 2014 2013 2012 2011 2010 True Cash Value $ 3,072,079,759 $ 2,931,862,235 $ 3,145,655,451 $ 3,394,416,254 $ 3,790,236,802 Legal Debt Margin Debt limit (3% of true cash value) 92,162,393 87,955,867 94,369,664 101,832,488 113,707,104 Net Bonded Debt: Gross bonded debt 34,295,413 36,630,395 31,584,014 31,095,074 17,898,697 Less amounts exempted: Water - - - - - Special assessment Re-funding Water re-funding (250,000) (375,000) (370,000) (360,000) (345,000) Total debt applicable to margin 34,045,413 36,255,395 31,214,014 30,735,074 17,553,697 Legal Debt Margin $ 58,116,980 $ 51,700,472 $ 63,155,650 $ 71,097,414 $ 96,153,407 Legal Debt Margin Compared to Debt Limit Last Ten Years 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ❑ DebtLimit(3% of true cash value) Legal Debt Margin Pg 146 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON LEGAL DEBT MARGIN Last ten years For the year ended June 30 (continued) 2009 2008 2007 2006 2005 $ 4,011,032,636 $ 4,000,418,984 $ 3,788,568,503 $ 3,266,109,773 $ 2,827,489,200 120,330,979 120,012,570 113,657,055 97,983,293 84,824,676 18,970,000 18,840,000 19,425,000 19,780,000 20,045,000 - (25,000) (50,000) (60,000) (85,000) (505,000) (655,000) (800,000) (940,000) (1,075,000) 18,465,000 18,160,000 18,575,000 18,780,000 18,885,000 $ 101,865,979 $ 101,852,570 $ 95,082,055 $ 79,203,293 $ 65,939,676 comprehensive annual financial report - Pg 147 2014 statistical section CITY OF ASHLAND, OREGON COMPUTATION OF LEGAL DEBT MARGIN June 30, 2014 - Unaudited True cash value $ 3,072,079,759 3% of true cash value 0.03 $ 92,162, 393 NET BONDED DEBT: Gross bonded debt 34,295,413 Less amounts exempted: Water Water re-funding (250,000) Total debt applicable to margin 34,045,413 LEGAL DEBT MARGIN $ 58,116,980 ORS 287.004 provides a debt limit of three percent of the true cash value of all taxable property within the Municipality's boundaries. According to ORS 287.004, the three percent limitation does not apply to bonds issued for water, sanitary or storm sewers, sewage disposal plants, hospitals, power or lighting purposes, nor to bonds issued pursuant to applications to pay assessments for improvements or installments for benefited property owners. Source: Jackson County Assessor's Office Audited Financial Statements Oregon Revised Statutes (ORS) 287.004 Pg 148 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT GENERAL OBLIGATION BONDS June 30, 2014 - Unaudited Net General Obligation Bonded Debt Percentage Applicable Jurisdiction Outstanding to City Amount Applicable to City Direct: City of Ashland $ 34,295,413 100.00% $ 34,295,413 Overlapping: Jackson County 3,401,982 14.54% 494,648 School District No. 5 20,618,692 79.81% 16,455,778 Rogue Community College 2,870,525 14.54% 417,374 $ 26,891,199 $ 17,367,801 $ 61,186,612 $ 51,663,214 Source: State of Oregon, Office of Treasurer City of Ashland Bonded Debt Compared to Overall DebtApplicable to the city IIII~IIIVn um ~~Overlapping City of Ashland 65% comprehensive annual financial report - Pg 149 2014 statistical section CITY OF ASHLAND, OREGON PRINCIPAL EMPLOYERS Current and ten years ago 2014 Percentage of Total City Employer (1) Employees Employment Numbers not yet available Total 0 0.00% Estimated total city employment 9,000 2005 Percentage of Total City Employer Employees Employment Southern Oregon University 750 8.96% Oregon Shakespeare Festival 450 5.38% Ashland Public Schools 429 5.13% Ashland Community Hospital 425 5.08% City of Ashland 269 3.21% Subtotal 2,323 25.81% Professional Tool Mfg. LLC 95 1.14% Prestige Care (dba Linda Vista) 84 1.00% Albertsons 71 0.85% Ashland Springs Hotel 65 0.78% Windmill Inn of Ashland 53 0.63% 0 0.00% Total 2,691 32.15% Estimated total city employment 8,369 Source: Ashland Chamber of Commerce Note: Ashland Chamber of Commerce has changed their reporting method and now only tracks the top five employers in the city Pg 150 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON DEMOGRAPHIC STATISTICS Last ten years - Unaudited Fiscal Year Total Jackson County Ended June Percentage Per Capita Personal School Enrollment Unemployment Rate 30, Population (1) Change Income Income (2) (3) (4) 2014 20,366 0.20% unavailable 2,800 8.4% 2013 20,325 -5.29% unavailable 2,700 8.3% 2012 21,460 6.79% unavailable 2,720 8.3% 2011 20,095 -6.56% unavailable 2,737 11.9% 2010 21,505 0.09% - unavailable 2,819 12.1% 2009 21,485 -1.44% 18,219 391,431 2,767 13.6% 2008 21,800 1.73% 19,770 430,978 2,846 6.7% 2007 21,430 2.63% 21,636 463,652 2,909 5.6% 2006 20,880 1.41% 22,079 461,001 2,915 5.7% 2005 20,590 0.78% 19,976 411,308 3,044 6.2% Sources: (1) Center for Population and Research and Census, Portland State University (2) State of Oregon Employment Division, Department of Human Resources (3) Ashland School District Population Growth Last Ten Years 22,000 21,000 20,000 19,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 comprehensive annual financial report - Pg 151 2014 statistical section CITY OF ASHLAND, OREGON SCHEDULE OF MAJOR INSURANCE IN FORCE June 30, 2014 Company Coverage Policy Period Annual Aggregate/Each Occurrence Premium Citycounty Insurance Services General Liability 07/01/2013-07/01/2014 $ 15,000,000 / $ 5,000,000 $ 144,253 Public Officials Liability 07/01/2013-07/01/2014 $ 15,000,000 / $ 5,000,000 Employment Practices 07/01/2013-07/01/2014 $ 15,000,000 / $ 5,000,000 Automobile Liability 31,333 Scheduled Autos 07/01/2013-07/01/2014 None / $ 5,000,000 Hired Autos/Non Owned 07/01/2013-07/01/2014 None / $ 5,000,000 Uninsured Motorist 07/01/2013-07/01/2014 None / $ 5,000,000 Auto Physical Damage 10,911 Scheduled Autos 07/01/2013-07/01/2014 Per Filed Value Rented or Leased 07/01/2013-07/01/2014 Per Filed Value Newly Acquired Autos 07/01/2013-07/01/2014 Per Filed Value Property 79,650 Buildings 07/01/2013-07/01/2014 Per Filed Value Mobile Equipment 07/01/2013-07/01/2014 Per Filed Value Boiler and Machinery 07/01/2013-07/01/2014 Replacement Cost of Machinery & Included Equipment not covered elsewhere above Excess Crime 07/01/2013-07/01/2014 Per Loss/ $250,000 1,195 ACE Property & Casualty Airport Liability 07/01/2013-07/01/2014 $4,000,000/$4,000,000 2,441 The Hartford Flood 10/23/2013-10/23/2014 $ 56,900 1,217 Safety National Casualty Corp. Workers' Compensation Self- 07/01/2013-07/01/2014 6,000 Insured Bond Excess Workers' 07/01/2013-07/01/2014 Statutory/$1,000,000 559,060 Midwest Employers Casualty Co Compensation National Union Fire Ins. Co of Volunteer Accident Ins 07/01/2013-07/01/2014 Per Filed Value 1,788 Pittsburgh, PA ACE American Ins. Co. Underground Storage Tank 07/01/2013-07/01/2014 $1,000,000/$1,000,000 563 Liability Pg 152 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON CITY EMPLOYEE BY FUNCTION/PROGRAM Last ten years For the year ended June 30 Function/Program 2014 2013 2012 2011 2010 2009 2008 2007 2006* 2005 Administration 4.00 4.00 5.00 4.00 4.00 4.00 3.06 3.00 3.00 3.00 Human Resources 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 2.00 2.00 Legal 3.00 3.00 3.00 3.00 3.00 3.00 3.50 3.50 3.50 3.50 Information Technology 8.80 8.80 8.80 8.80 7.95 7.95 7.60 7.60 7.60 6.45 Finance 16.25 16.25 16.25 16.25 17.25 17.25 15.75 15.50 17.50 16.50 Municipal Court 4.15 4.15 3.15 3.65 3.65 3.65 4.15 4.15 4.15 3.75 City Recorder/Treasurer 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Police 36.75 36.30 35.30 34.80 34.80 36.80 39.30 40.30 39.80 39.80 Fire 34.75 34.75 33.75 32.00 32.40 33.40 35.40 35.40 35.00 34.00 Streets 10.70 10.95 9.90 9.90 10.20 10.20 10.20 10.20 10.20 9.70 Water 14.50 14.50 14.50 14.50 16.30 16.30 16.30 16.30 14.80 14.80 Wastewater 11.30 11.30 10.30 10.30 12.80 12.80 11.80 11.80 11.80 11.80 Public Works Administration 7.00 7.00 6.00 7.50 7.00 7.00 8.00 8.00 8.00 8.00 Engineering 7.00 7.00 6.00 5.00 6.00 6.00 6.00 6.00 6.00 6.00 Facilities Maintenance / Cemetery 4.00 4.50 4.50 4.50 4.00 4.00 4.00 4.00 4.00 4.00 Fleet Maintenance 4.80 4.80 4.80 5.00 3.50 3.50 3.50 3.50 3.50 3.50 Planning 9.00 9.00 8.90 8.90 8.70 8.70 10.65 11.75 10.50 8.65 Building 4.00 4.00 3.70 3.60 3.85 3.85 5.75 6.05 6.50 6.55 Electric 17.25 17.25 17.75 17.75 18.50 18.50 18.10 18.10 18.10 17.15 Telecommunication 5.70 5.70 6.70 6.20 7.55 7.55 7.55 7.55 8.05 9.65 Conservation 3.50 3.50 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.80 Senior Program * * * * * * * * * 1.75 Subtotal 210.45 210.75 205.30 202.65 208.45 211.45 218.61 220.70 219.00 215.35 Parks 43.80 43.80 43.80 43.45 45.65 48.55 50.55 48.45 48.45 45.90 Total 254.25 254.55 249.10 246.10 254.10 260.00 269.16 269.15 267.45 261.25 * Senior Program included in Parks in 2006 **2004 figures do not include temporary employees The City implemented GASB Statement No. 34 in fiscal year 2003; therefore, some of the tables presenting government-wide information include only nine years. comprehensive annual financial report - Pg 153 2014 statistical section CITY OF ASHLAND, OREGON OPERATING INDICATORS BY FUNCTION 1 PROGRAM Last ten years Function/Program 2014 2013 2012 2011 Police Physical arrests, juvenile and adult 2509 2,868 2,670 2,343 Traffic violations 3461 3,061 2,679 2,868 Fire Fire alarm responses 398 390 379 291 Emergency medical responses 3098 2,927 3,105 2,694 Non-emergency public service responses 155 97 94 79 Code enforcement plans review 404 380 246 215 Total calls for service 3533 3,414 3,577 3,327 Total ambulance patient transports 1600 1,523 1,635 1,611 Water Service connections 8870 9,038 9,071 8,678 Daily average consumption in millions of gallons 2.9 2.7 2.7 4.6 Maximum daily capacity of plant in million gallons 8 8 8 8 Sewer Service connections 8295 8,181 7,850 8,181 Daily average treatment in million of gallons 2.25 2.2 2.2 2.1 Maximum daily capacity in millions of gallons 4 4 3 4 Electric Service connections 12662 11,914 12,148 11,985 Telecommunications Cable TV 1400 1,840 - - Cable modem 3961 4,082 40,666 4,454 Potential station capacity 140 140 140 140 , Identifies correction to capacity 2 Identifies the implementation of new software that correctly accounts for crimes 3 Cable TV outsourced 4 Cable TV analog channels Pg 154 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON OPERATING INDICATORS BY FUNCTION 1 PROGRAM Last ten years (continued) 2010 2009 2008 2007 2006 2005 2,073 2,098 2,489 2,748 2,607 2,004 3,160 2,784 2,600 3,036 3,773 4,608 359 363 500 457 425 415 2,705 2,761 3,022 2,955 2,716 2,952 75 46 76 87 109 100 293 262 440 495 535 644 3,128 3,170 3,590 3,534 4,000 3,285 1,456 1,476 1,700 1,616 1,511 1,243 8,433 8,126 8,291 8,281 7,870 7,764 2.7 3.3 3.4 4 4 3 8 8 8 8 8 8 7,995 8,008 8,153 8,129 7,722 7,583 2.2 2.2 2.2 2 2 2 4 4 4 4 4 4 11,275 11,944 11,979 11,780 11,277 11,062 - - - - 3,095 3,170 4,094 4,160 4,153 3,988 3,823 3,686 140 80 80 80 140 161 comprehensive annual financial report - Pg 155 2014 statistical section CITY OF ASHLAND, OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM Last ten years Function/Program 2014 2013 2012 2011 Police Stations 1 1 1 1 Contact station 1 1 1 1 Patrol units (vehicles) 8 8 8 8 Sworn officers 28 28 25 25 Fire Stations 2 2 2 2 Fire fighters 27 27 26 26 Streets Miles of paved streets 92 92 92 92 Miles of gravel streets 9 9 9 9 Miles of storm sewers 93 93 93 93 Water Miles of water mains 130 130 130 130 Hydrants 1,266 1,262 1,248 1,248 Water treatment plant 1 1 1 1 Sewer Miles of sanitary sewers 110 110 110 110 Treatment plant 1 1 1 1 Identifies integration of Cartegraph System with GIS that has provided more accurate figures. Pg 156 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM Last ten years (continued) 2010 2009 2008 2007 2006 2005 1 1 1 1 1 1 1 1 1 NA NA NA 8 8 8 8 8 8 26.5 26.5 27 27 27 27 2 2 2 2 2 2 26 29 31 31 31 31 92 92 100 100 100 100 14 14 11 10 14 14 93 90 89 85 85 84 130 130 124 124 124 124 1,245 1,237 1,154 1,115 1,142 1,131 1 1 1 1 1 1 110 110 110 110 110 108 1 1 1 1 1 1 comprehensive annual financial report - Pg 157 2014 statistical section CITY OF ASHLAND, OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM Last ten years (continued) Function/Program 2014 2013 2012 2011 Electric Street lights 1864 1,858 1,827 1,827 Electrical transformers 2032 2,025 2,007 2,007 Poles 3605 3,600 3,506 3,506 Substations 3 3 3 3 Telecommunications Miles of fiber 25 25 25 25 Miles of coax 119 119 119 119 Parks and Recreation Community centers 3 3 3 3 Parks 19 16 16 16 Park acreage 642 642 642 642 Golf courses 1 1 1 1 Swimming pools 1 1 1 1 Ice skating rinks 1 1 1 1 Skateboard parks 1 1 1 1 Tennis courts 12 12 12 12 Trails (miles) 29 29 29 29 Health Care Hospital 1 1 1 1 Hospital beds 49 49 49 49 Education Elementary schools 4 4 4 4 Elementary school instructors 69 69 69 69 Secondary schools 2 2 2 2 Secondary school instructors 91 91 91 91 State universities 1 1 1 1 Pg 158 - city of ashland 2014 statistical section CITY OF ASHLAND, OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM Last ten years (continued) 2010 2009 2008 2007 2006 2005 1,832 1,811 1,802 1,802 1,771 1,707 2,002 1,996 1,982 1,982 1,973 1,943 3,560 3,557 3,453 2,551 2,559 3,501 3 3 3 3 3 3 25 25 25 25 29 25 119 118 117 117 110 117 3 3 3 3 3 3 19 19 19 19 19 19 642 640 640 640 640 637 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 12 12 12 12 12 12 29 29 29 29 29 29 1 1 1 1 1 1 49 49 49 49 49 49 4 4 4 4 3 3 59 59 59 59 59 61 2 2 2 2 2 2 106 106 106 106 106 106 1 1 1 1 1 1 comprehensive annual financial report - Pg 159 2014 comprehensive annual financial report F 7111, i.. Pg 160 - city of ashland 2014 audit comments and disclosures required by state regulations AUDIT COMMENTS AND DISCLOSURES Required by State Regulations comprehensive annual financial report - Pg 161 2014 audit comments and disclosures required by state regulations Oregon Administrative Rules 162-10-050 through 162-10-320 incorporated in the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, and comments and disclosures required in audit reports. The required statements and schedules are set forth in the preceding sections of this <report. Required comments and disclosures related to the audit of such statements and schedules are set forth in the following pages. Pg 162 - city of ashland 2014 audit comments and disclosures required by state regulations A' '.w Ti, l I ,~w rv a~' vk (503) -2632 ♦ (5013) 684-7523 FA, r,M* NU: , r ,paulyrogersandeocpas.coni Independent Auditor's Report Required by Oregon State Regulations We have audited the basic financial statements of the City of Ashland as of and for the year ended June 30, 2014, and have issued our report thereon dated October 17, 2014. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards. Compliance As part of obtaining reasonable assurance about whether the City of Ashland's financial statements are free of ma- terial misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statues as specified in Oregon Administrative Rules 162- 10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations, noncompli- ance with which could have a direct and material effect on the determination of financial statements amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and ac- cordingly, we do not express such an opinion. We performed procedures to the extent we considered necessary to address the required comments and disclosures which included, but were not limited to the following: • Deposit of public funds with financial institutions (ORS Chapter 295) • Indebtedness limitations, restrictions and repayment. • Budgets legally required (ORS Chapter 294). • Insurance and fidelity bonds in force or required by law. • Programs funded from outside sources. • Authorized investment of surplus funds (ORS Chapter 294). • Public contracts and purchasing (ORS Chapters 279A, 279B, 279C). In connection with our testing nothing came to our attention that caused us to believe the City of Ashland was not in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including the provi- sions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations. OAR 162-10-0230 Internal Control In planning and performing our audit, we considered the internal controls over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the internal control over financial reporting. Ac- cordingly, we do not express an opinion on the effectiveness of the internal controls over financial reporting. comprehensive annual financial report - Pg 163 2014 audit comments and disclosures required by state regulations We noted matters involving the internal control structure and its operation that we consider to be significant defi- ciencies under standards established by the American Institute of Certified Public Accountants, which are noted in the schedule of findings and questioned costs. This report is intended solely for the information and use of the Council, Audit Commission, management and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. Kenneth Allen, CPA PAULY, ROGERS AND CO., P.C. Pg 164 - city of ashland 2014 audit comments and disclosures required by state regulations GOVERNMENT AUDITING STANDARDS COMPLIANCE REPORTS comprehensive annual financial report - Pg 165 2014 audit comments and disclosures required by state regulations F 7111, i.. Pg 166 - city of ashland 2014 audit comments and disclosures required by state regulations A' '.w Ti, l I ,~w rv a~' vet (503) -2632 ♦ (3013) 684-7 23FA, r,M* NU: , r ,paul rogersandeocpas.coni October 17, 2014 To the Mayor and City Council City of Ashland Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comp- troller General of the United States, the financial statements of the governmental activities, the business-type ac- tivities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Ashland as of and for the year ended June 30, 2014, and the related notes to the finan- cial statements, which collectively comprise the basic financial statements, and have issued our report thereon dated October 17, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the pur- pose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of internal control. Accordingly, we do not express an opinion on the effectiveness of internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstate- ments on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the financial statements will not be pre- vented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompanying schedule of findings and questioned costs to be significant defi- ciencies. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, signifi- cant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identi- fied. comprehensive annual financial report - Pg 167 2014 audit comments and disclosures required by state regulations Compliance and Other Matters As part of obtaining reasonable assurance about whether the financial statements are free from material misstate- ment, we performed tests of compliance with certain provisions of laws, regulations, contracts, and grant agree- ments, noncompliance with which could have a direct and material effect on the determination of financial state- ment amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of non- compliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management on the Schedule of Findings and Questioned Costs. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in consid- ering the internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Kenneth Allen, CPA PAULY, ROGERS AND CO., P.C. Pg 168 - city of ashland 2014 government auditing standards compliance reports A' '.w Ti, l I ,~w rv a~' vk (503) -2632 ♦ (5013)6 84-7 23 FA, r,M* NU: , r ,paulyrogersandeocpas.coni October 17, 2014 To the Mayor and City Council City of Ashland Independent Auditors' Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 Report on Compliance for Each Major Federal Program We have audited City of Ashland's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the major federal programs for the year ended June 30, 2014. The major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants appli- cable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accor- dance with auditing standards generally accepted in the United States of America; the standards applicable to fi- nancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a di- rect and material effect on a major federal program occurred. An audit includes examining, on a test basis, evi- dence about compliance with those requirements and performing such other procedures as we considered neces- sary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal pro- gram. However, our audit does not provide a legal determination of compliance. Opinion on Each Major Federal Program In our opinion, City of Ashland, complied, in all material respects, with the types of compliance requirements re- ferred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. comprehensive annual financial report - Pg 169 2014 government auditing standards compliance reports Report on Internal Control Over Compliance= Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we con- sidered internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on in- ternal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely ba- sis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficien- cies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over com- pliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of in- ternal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. 110 Kenneth Allen, CPA PAULY, ROGERS AND CO., P.C. Pg 170 - city of ashland 2014 government auditing standards compliance reports CITY OF ASHLAND SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE For the year ended June 30, 2014 Federal Federal Program or Year to Date CFDA Grantors Award Disbursements/ Federal Grantor/Pass-Through Grantor Program Title Number Number Amount Expenditures Bulletproof Vest Partnership Program United States Department of Justice 04/01/2012-08/31/2014 16.607 ASHLAND CITY $ 3,720.00 $ 5,843.00 Southern Oregon High Tech Crimes Task Force United State Department of Justice Federal Intellectual Property 16.752 2012-DG-BX-0013 $ 50,790.00 $ 41,606.11 Grant 10/01/2012-09/30/2013 Cooperative Forestry Assistance United States Department of Agriculture Oregon Department of Forestry ODF-Biomass 3/5/2013-09/30/2014 10.664 12-DG-11062764-027 $ 75,000.00 $ 48,863.78 Forest Stewardship Program United States Department of Agriculture USFS, Rogue River-Siskiyou National Forest Ashland Forest Resiliency Stewardship 10.678 ORFO-03-31-10-02EH $ 2,117,979.00 $ 72,448.99 Project (AFR) 3/15/2010-09/30/2013 Cooperative Forestry Assistance United States Department of Agriculture via The Nature Conservancy Promoting Ecosystem Resiliency via 10.664 FIRE_CITYOFASHLAND $ 255,345.00 $ 32,241.36 Collaboration (PERC) 3/12/2012-12/31/2013 _11.16.11 Assistance to Firefighters Grant United States Department of Homeland Security Federal Emergency Management Agency FY2012 Assistance to Firefighters 97.044 EMW-2012-FO-04235 $ 67,318.00 $ 65,288.39 Grant (Rope) 12/20/2012-12/19/2013 Community Development Block Grant Program United States Department of Housing and Urban Development Unallocated Carryover 14.218 B12MC410008 $ 97,244.15 $ 90,533.40 07/01/2013-06/30/2014-Grant Award 14.218 B13 MC410008 $ 165,591.00 $ 162,208.35 TOTAL CDBG in FY14 $ 262,835.15 $ 252,741.75 (1) TOTAL FEDERAL ASSISTANCE $ 2,832,987.15 $ 519,033.38 (1) - Major Program comprehensive annual financial report - Pg 171 2014 government auditing standards compliance reports SECTION I - SUMMARY OF AUDITORS' RESULTS FINANCIAL STATEMENTS Type of auditors' report issued Unmodified Internal control over financial reporting: Material weakness(es) identified? ❑ yes ® no Significant deficiency(s) identified that are not considered to be material weaknesses? ® yes ❑ none reported Noncompliance material to financial statements noted? ❑ yes ❑ no Any GAGAS audit findings disclosed that are required to be reported in accordance with section 505(d)(2) of OMB Circular A-133? ❑ yes ❑ no FEDERAL AWARDS Internal control over major programs: Material weakness(es) identified? ❑ yes ® no Significant deficiency(s) identified that are not considered to be material weaknesses? ❑ yes ® none reported Type of auditors' report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, section 510(a)? ❑ yes ® no IDENTIFICATION OF MAJOR PROGRAMS CFDA NUMBER NAME OF FEDERAL PROGRAM CLUSTER 14.218 Community Development Block Grants/Entitlement Grants Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? Yes Pg 172 - city of ashland 2014 government auditing standards compliance reports SECTION II - FINANCIAL STATEMENT FINDINGS 2014-FS-1 Condition: All staff at the Courts Department can make manual changes to court charges within the system. Criteria: Good internal control requires that the all manual changes be reviewed by someone other than the pre- parer and that not all staff have access to make manual changes. Cause: A lack of segregation of duties causes this issue. Effect: Court transactions could be processed incorrectly or theft could be perpetrated by pocketing cash and manually reducing individual court charges. Recommendations: We recommend that someone in management, other than the preparer, review all manual changes in the Courts Department. Management's Response: SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONS COSTS: None 1. Basis of Presentation: The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of Ash- land and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organization. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. comprehensive annual financial report - Pg 173 ii. Pg 174 - city of ashland CITY OF ASHLAND Council Communication November 18, 2014, Business Meeting Workforce Development Proposal - Ashland Community Resource Center FROM: Adam Hanks, Management Analyst, adam@ashland.or.us SUMMARY Based on Council discussion and direction from the June 30, 2014, Study Session meeting, staff has proposed a workforce development concept targeted at providing resources and job placement opportunities in partnership with the Ashland Community Resource Center (ACRC). Services would include resume assistance, "ready to work" registration, employer feedback for performance/quality, outreach to develop network of participating employers and ongoing coaching/guidance in response to employer feedback for long term program success. Funding for the program would come from the Economic Development program in the form of a contract to ACRC which would include role of City vs. ACRC, minimum service levels, performance targets and progress reporting. It is estimated that the project could be implemented for $20,000. BACKGROUND AND POLICY IMPLICATIONS: Council has been working with City staff over the past year to improve the workforce readiness with targeted local efforts enhancing the regional efforts already in place. Options researched and discussed included a satellite office for the Job Council in Ashland for a specified number of hours per month, development of a workforce training program based on employer needs for both existing employees and future employment skill needs and development of a program to assist job seekers (unemployed or under employed) with local options for entering the local workforce and succeeding. At the June 30, 2014 Council Study Session, Council indicated an interest in creating a multi step workforce development plan that started with addressing more of the short term, immediate job placement needs within the community. Council suggested working with the Ashland Community Resource Center (ACRC) to create a program to assist the ACRC customer base in obtaining short term local employment with the ultimate goal of becoming self-sufficient and transitioning into a permanent role within the local workforce and community. While attempting to meet the needs of the ACRC customer base, a parallel objective is to provide a local contingent of interested workers to fill open positions for needed work in our local economy that has been challenged to find matches to their sometimes seasonal needs. Further development of the project could expand the offering to meet the needs of the traded sector and professional job seeker/employer, targeting the rising trend of professional contract/project work rather than attempting to duplicate the more standard "job posting" tool. Page 1 of 3 II, CITY OF -ASHLAND The Proposal AshlandJobMatch. org - Where Ashland's full spectrum of skills and tasks meet. Job Seekers • Resume Assistance - Resources and templates for creating a viable working resume • "Ready to Work" registration o With evaluation/screening by staff, qualified job seekers can be registered on the site and enter preferences/keywords to auto filter the jobs available list to best fit their abilities, preferences and schedule needs • Performance scoring - Job seeker registration includes a section for employer to comment and grade the results of any prior job placement through the online system (0-5 stars, 1-10 scoring or similar) to assist employers in future selections or longer term hiring potential. • Auto alert - Automated response via email/text of potential job match and submitted employer evaluation, in addition to phone or in office options. Employers • Account Registration - Local businesses sign up to the site and commit/pledge a minimum number of hours or tasks to make available to registered job seekers • Job Posting - Employers post jobs/tasks available, wage, min skill requirement, other minimum standards (uniform, indoor/outdoor, etc) • Post Employment Evaluation - Employers provide feedback on job seeker account, giving grade/rank and comment • Auto Alert - Automated response via email/text of potential job match, reminders to ensure post work evaluation submittal. Project Start-Up Costs by Component Database/Software Development - $5,000-$10,000 (may be less if ACRC contracts for this work vs. City) • Web based with associated mobile app • Employer and Job seeker log-ins • Resume and other document upload ability • Public view of job listings, but not contact info until account log-in/registration complete • Job/task list sortable by hours, type of work, indoor/outdoor, ongoing vs. one time, etc • Reporting for program benchmarking, monitoring of placement effectiveness, etc Job Seeker Assistance - $10,000 (estimate .25 additional ACRC staff) • General guidance • Basic skill assessment • Resume assistance • Qualification for system registration • Monitoring of post hiring evaluations/reporting from employers • Coaching/assistance for those that received poor evaluations/scores from employers to improve their readiness for another chance. Page 2 of 3 ~r, CITY OF ASHLAND Program Marketing/Outreach - $3,000 (Could be part of ACRC grant or done by City or shared task) • Advertising to potential employer base • Face to face outreach to key segments(restaurants, warehouses, landscapers, public agencies, etc) • Development of program brochures Summary The estimated $20,000 project would be funded by the City utilizing Economic Development Program funds with ACRC providing the staffing and program operation. City staff could be project management lead on software development, monitor effectiveness and assist in elements of the marketing/outreach. Additional project phases could expand the software tools, availability and use to the traded sector market and function as a local version of a project/task based workforce management (contingent workforce) solution similar to those found in a variety of professional and technical fields on the national and global scale. COUNCIL GOALS SUPPORTED: 5. People • 5.3 - Leverage partnerships with non-profit and private entities to build social equity programming • 5.4 - Encourage the ongoing effectiveness of the Resource Center (ACRC) FISCAL IMPLICATIONS: While no formal bids have yet been obtained, City and ACRC staff has estimated that the project could be developed for approximately $20,000 which would most likely be augmented to some degree with other program resources obtained by ACRC through successful grant awards. STAFF RECOMMENDATION AND REQUESTED ACTION: With the three primary workforce development program options having now been discussed and evaluated, staff recommends that Council direct staff to move forward with ACRC in developing a contract that would incorporate the responsibilities of both the City and ACRC in setting up and operating the Ashland Job Match program. SUGGESTED MOTION: I move to direct staff to work with ACRC staff to develop a grant contract incorporating the program elements generally described in the Council Communication and bring back to Council for contract approval at a future meeting. ATTACHMENTS: City Council Minutes, June 30,2014 ACRC Workforce Development Documents Page 3 of 3 A City of Ashland. Oregon / City Council City Council - Minutes View Agenda Monday, June 30, 2014 MINUTES FOR THE STUDY SESSION ASHLAND CITY COUNCIL Monday, June 30, 2014 Siskiyou Room, 51 Winburn Way Council Chair Slattery called the meeting to order at 5:32 p.m. in the Siskiyou Room. Councilor Morris, Voisin, Rosenthal, and Marsh were present. Mayor Stromberg and Councilor Lemhouse were absent. 1. Look Ahead review City Administrator Dave Kanner reviewed items on the Look Ahead. 2. Discussion of Electric User Tax and Electric Franchise Fee City Administrator Dave Kanner explained the 25% Electric User Tax (EUT) went into the General Fund. Council discussed the need to make the EUT more transparent and suggested changing the name. Staff clarified typically a tax was named after where it came from. One Council suggestion would make electric rates progressive and based on usage to reward conservation efforts. Other comments would make the EUT negotiable like property taxes. Mr. Kanner further explained government municipalities did not pay the EUT and paid higher electric rates than users. The Cost of Service Study indicated the government municipal rate should come down 12% and the other rates increase to create a balance. Incentivizing conservation occurred in Tier 1 rates that were lower than Tier 2 rates. People who took advantage of weatherization and efficiency gain programs typically owned their homes and had the money to participate. The Cost of Service Study would provide support for lower income households by increasing and distributing the base rates through all incomes since low-income tended to use more energy. Residential service did not pay a demand charge while other services did because they placed higher demands on the system. Residential also did not pay for the first 15-kilowatts of demand. Management Analyst Adam Hanks explained demand versus consumption, and that larger cities had conservations program for demand response. Mr. Kanner would make it clearer in the budget process how much more money was generated in EUT when rates were raised. The Budget Committee or Council could discuss whether to earmark funds for a specific purpose. Council also wanted an outline explaining the rate increase and the impact. Staff clarified the franchise fee was an interfund transfer from the Electric Fund to the General Fund at 10% of the gross revenue and considered the cost of doing business. Ratepayers did not pay the franchise fee directly, only the Electric Fund paid. The expense was ultimately built into the rate and not an assessment on individual ratepayers. 3. Discussion of workforce development (request of Councilor Slattery) Councilor Slattery did not think The Job Council was the appropriate agency and explained the Workforce Training program at Rogue Community College (RCC) might suit Ashland better. Management Analyst Adam Hanks confirmed that The Job Council agreed Ashland's workforce needs were not a good fit for their program. Mr. Hanks explained elements of RCC's program that worked with local industries on workforce development for existing employees or employers requiring specific skill sets. Council saw two potential directions, one was the employer driven project with RCC assessing local employers on what their needs were. The other direction was working with people wanting employment. Council was concerned regarding RCC's focus on trade sector employment when Ashland was more tourism and healthcare based. One suggestion would have someone at the Resource Center once a week providing practical assistance on worker development skills or employment. Council suggested meeting with Lee Madsen at the Resource Center on what would be useful as well as look into the resources offered through ACCESS and possibly utilize services from RCC and ACCESS to cover more options. Councilor Slattery would talk to Mr. Madsen. Staff would work with RCC on employment programs. Council would discuss goal setting for a long-term strategy. Meeting adjourned at 6:45 p.m. Respectfully submitted, Dana Smith Assistant to the City Recorder PRINT CLOSE Open Mon - Fri 9am - fpm and Wed 4pm-7pm Phone: 541-631-2235 Fax: 541- 488-6935 572 Clover Lane, Ashland, Oregon 97520 ~AS A \D COMMUNITY { ~'RESOURCE Partnership Between Oplions for Homeless Residents of Ashland Gfid ACCESS, 5706 Ower Lone Asnii~,d OF < 97520 WORKFORCE DEVELOPMENT TOOLS 1. ACRC will establish a network of "incubator" employers in varied sectors of the economy (food service, landscaping, construction, light manufacturing, retail, etc.) who we will work with to provide a "sheltered" workplace as a first-step for our guests to re-integrate themselves back into the workforce. i 2. ACRC will establish a program to provide guest-specific support mechanisms (alarm clocks, bus vouchers, gas money, etc.) to help ensure a successful employment outcome. 3. ACRC will establish a program for frequently obtaining feedback from employers so that ACRC can provide our guests with real-time coaching to improve their job performance. i 4. ACRC and our guests will jointly formulate an individualized "contract of expectations" to establish clear communication regarding participation in the program. i i r r AS A\D COMMUNITY ',RESOURCE Partnership Options • Homeless Residents of Ashland and ACCESS, 570BCr,,,,,-,Lcre As,)';~ind,OR97520 Job Search and Resume Preparation Objective: To provide our guests with assistance in conducting a job search; including resume and cover letter preparation as well as coaching for a job interview. 1. Interview - Discuss employment experience and job search goals with the guest to determine focus of job search. 2. Job Search - Conduct online job search via ` jobcouncil.org" based upon the employment goals as stated by the guest. 3. Resume a. Have the guest complete a "Resume Information Form" to gather employment history and education details. b. Create a one-page resume based upon a specific employment opportunity and the guest's related employment experience. 4. Cover Letter- Create a resume cover letter which mirrors the language of a specific job f opportunity posting. 5. Job interview coaching -Discuss with the guest the "dos and don'ts" of a successful job interview. I Todd B. Clark t volunteer Ashland Community Resource Center Dress to be a Success i Mission: To provide our clients with the appropriate attire for a job interview To provide personal grooming for all clients II We are now helping clients with selection of clothing to wear to an interview. We are receiving donations of appropriate attire from local organizations. Additionally, one of our Ashland- j based hair salons is helping us provide hair cuts for clients. We have this available for our clients to go out with confidence to their interviews and be able to successfully achieve a new career. Ginny Sagal Dress to be a Success Coordinator 1 i 1 i ~I i i i I I f Leightman Maxey Foundation P.O. Box 907 Medford, OR 97501 Phone (541) 734-9322 Fax (541) 734-8584 i i October 8, 2014 John Wieczorek, Options for Homeless Residents of Ashland (OHRA) P.O. Box 1133 Ashland, Oregon 97520 Dear John: Enclosed please find check #1914 in the amount of $10,000.00 from the Leightman Maxey Foundation. This check represents funds awarded in support of Front Office Development Project. Specifically, to increase employment opportunities for clients. The Foundation requires a full and complete Grant Report on the manner in which the funds were spent. The Grant Report form and your reporting deadlines can be found at: www.leightmanmaxeyfoundation.org. Use the login credentials you used when completing the grant application. If at any time you find yourselves unable to meet the requirements of the Grant Agreement you have signed with the Leightman Maxey Foundation pertaining to this grant, please notify me. I will be happy to discuss changes in your methodology or budget process that have come up during the implementation timeline. i Congratulations and best wishes Sincerely, Jam. -~„~y~s Dee Ann Harris j Executive Director Leightman Maxey Foundation I daharris@leightmanmaxeyfoundation.org ~ l i i