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HomeMy WebLinkAbout2008-1118 Council Mtg PACKET CITY OF ASHLAND ImDortant: 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. Except for public hearings, there is no absolute right to orally address the Council on an agenda item. Time permitting, the Presiding Officer may allow oral testimony; however, public meetings law guarantees only public attendance, not public participation. 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, ifany. The time granted will be dependent to some extent on the nature of the item under discussion, the number of people who wish to be heard, and the length of the agenda. AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL November 18,2008 Council Chambers 1175 E. Main Street 6:00 p.m. Executive Session to consult with legal council regarding pending litigation pursuant to ORS 192.660(2)(h) 7:00 p.m. Regular Meeting I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENT OF BOARD AND COMMISSION VACANCIES V. SHOULD THE COUNCIL APPROVE THE MINUTES OF THESE MEETINGS? [5 minutes} 1. Executive Session of October 30, 2008 2. Joint Parks and Council Meeting of October 30, 2008 3. Study Session of November 3, 2008 4. Regular Council of November 4, 2008 VI. SPECIAL PRESENTATIONS & AWARDS None. VII. CONSENT AGENDA [5 minutes] 1. Does the Council accept the Minutes of Boards, Commissions, and Committees? 2. Should the Council make a final decision denying the Measure 49 claim for approximately 27.25 acres of W-R zoned land located at the end of Hitt Road and notify DLCD and the claimants of the final decision? VIII. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. All hearings must conclude by 9:00 p.m., be continued to a subsequent meeting, or be extended to 9:30 p.m. by a two-thirds vote of council {AMC 92.04.050}) 1. Shall Council suspend the public hearing to consider the formation of a local improvement district (LID) to improve Beach Street based upon a remonstrance petition representing 76.9 percent of the proposed assessment? [10 Minutes] COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9 VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US --...--.-----..---..--------- 2. Should the Council award up to $345,000 in CDBG funds to one or more of the respondents to the Request for Proposal in compliance with eligibility criteria of the Department of Housing and Urban Development? [30 Minutes] IX. 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 theirtestimony.) [15 minutes maximum] X. UNFINISHED BUSINESS 1. Will Council approve a resolution authorizing the issuance of Full Faith and Credit Bonds up to $2,500,000 to fund wastewater system improvements? [10 Minutes] XI. NEW AND MISCELLANEOUS BUSINESS 1. Should the Council accept the Comprehensive Annual Financial Report as recommended by the Ashland Audit Committee? [30 Minutes] 2. Does Council wish to change the resolution, amount granted, or the granting process for Social Services? [30 Minutes] 3. Does the City Council have questions about the progress and next steps for the Community Strategic Planning and Economic Development Strategy City Council Goals? [30 Minutes] XII. ORDINANCES. RESOLUTIONS AND CONTRACTS 1. Should the City Council conduct and approve the Second Reading of an ordinance titled "An Ordinance Amending Chapter 2, Administration, Adding Section 2.13 Transportation Commission; Repealing Section 2.22 Bic}Cle and Pedestrian Commission and Repealing Section 2.26 Traffic Safety Commission"? [5 Minutes] XIII. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS None XIV. ADJOURNMENT 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 VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US --------------~-~-----~---~--._-,~---"--~----_._------._-_..~----_.- Tn- T ASHLAND CiTY CUUNCiL M1:;n'JJN0 October 30,2008 PAGE 1 of4 MINUTES FOR THE JOINT MEETING ASHLAND CITY COUNCIL AND ASHLAND PARKS AND RECREATION COMMISSION October 30, 2008 Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Morrison and Parks Commission Chair, Mike Gardner, called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers. ROLL CALL Councilor Chapman, Hardesty, Hartzell, Jackson, Navickas, and Silbiger were present. Commissioners Eggers, Lewis, Noraas, and Rosenthal were present. BACKGROUND PRESENTATION Mayor Morrison gave overview of the agenda and the reasons for calling this meeting. City Administrator, Martha Bennett, Finance Director, Lee Tuneberg, and Parks Director, Don Robertson, gave a Power Point presentation (attached) regarding the steps that lead to this meeting and the issues to be discussed. Ms. Bennett gave overview of discussions held during the previous budget process. Mr. Tuneberg presented a chart of the projected fund balances for the next 6 years. Many funds look poor, some look very bad, and only a few look ok. Ms. Bennett stated that they will spend most of tonight's meeting focused on the General Fund and the Pars and Recreation fund because these are the funds that are primarily tax supported and the other funds are more easily in the City's control. Starting in 2007 the City began spending more in the general fund than was collected in revenue. The City expects to do this again in 2009 and projects this will happen, depending upon the economy, for the next several years. Mr. Tuneberg gave overview of the sources of revenue for the General Fund. Most revenues come from property taxes. The City of Ashland has a particularly wide array of taxes, which has given us a more stable base of revenue than many cities in Oregon. Mr. Tuneberg gave an overview of the general fund revenue trends for the past four years. He also gave an overview of the types of services provided in the General Fund including; Police, Fire and Rescue, Administrative Services (finance), Community Development, some Administration and some Public Works activities. Ms. Bennett told the group about the short-term general fund issues including: · A slow down in construction which can cause loss of funds in both permits and additional monies from newly assessed property taxes · Transient occupancy taxes are flat · Borrowing is becoming challenging · Interest earnings will be lower than budgeted · Lower rate of property tax collection · Some expenses are growing faster than revenues. The longer-term general fund issues the group needs to deal with include: · Permanent tax rate cap due to measure 50 limits · Vulnerability to changes in telecommunications franchise fee collections · Inflationary pressures (costs rising faster than revenue) m I ASHLAND CiTY COUNCiL ,HEETlNG October 30, 2008 PAGE 2014 . Declining rate of reimbursement for ambulance services . Cost recovery policies Mr. Robertson gave overview of the Parks budget over time including sources of revenue and the types of services provided by the parks department. One of the biggest budget changes recently was when Parks took over the Senior Center, which increased expenditures faster than revenues. Another significant change reflected in the charts was Parks beginning to handle the School grounds maintenance entirely. Parks Commission has done a couple of things to improve the Parks Fund budget outlook including; tying their budget process to their goal setting process, updating the facilities fees for the first time in 10 years, and establishing policies and targets for cost recovery. The short term Parks fund challenges: · Need to maintain an adequate ending fund balance to ensure funds available until property taxes are received (especially important due to high activity levels in summer) . Interest earnings lower than budgeted · Rate of property tax collection (Ashland is impacted by all Jackson County tax collections) . Inflation-driven expenses are growing faster than revenue. Mr. Robertson gave overview of the long-term fund challenges including: . Youth Activities Levy expiring . Food And Beverage Tax expiring . Most Parks revenues are from property taxes . Long-term agreements about city/parks split of tax rate Ms. Bennett informed the group that the discussions and decisions from this group before the beginning of the next budget process include: overall priorities for reductions and additions, priorities specific to shifts in the economy, and overall approach to revenues. Additional longer-term discussions will need to be had regarding the desired overall service levels, prioritization of services, and the overall tax burden for residents. From those discussions we will probably touch on other topics like; renewing the Food and Beverage tax, local option levies for parks services, general obligation bonds, and capital projects versus service levels. Ms. Bennett proposed that we use a series of Council study session and meet with Council, Parks Commission, and the Budget Committee to talk about four main topics; public safety, parks and recreation services, development related services, and revenue issues and options. She gave details on the proposed meeting dates. Committee asked why the Food and Beverage tax (F&B) was not included in the Parks fund slides. Mr. Robertson informed the group that currently F&B goes towards Capital Projects in Parks and not in their general parks fund. It will need to be discussed to determine if Parks could use those funds not only for capital but for new construction or for general operating expenses. Committee wanted clarification as to why the Parks Administration costs were so much greater than the City Administration costs. This is due to City Administration costs mostly being in the Central Services fund and not the General fund and Parks Administration costs mostly involving recreations management costs. PUBLIC INPUT Jean Crawford encouraged the group to continue to make funding for Parks a priority. She reminded the group of the long history of public involvement with the parks including donation of land, working to ASHLAND CiTY COUNCiL ;tlEETlNG October 30,2008 PAGE 3 of4 improve parks through volunteering. She knows the Parks Commission as worked hard to maintain good budgeting and to use volunteer help where needed. She believes we need a long-term plan for acquiring new park land. Darren Borgias thanked both groups for all their hard work. He is representing the Friends of Westwood Park. The Friends of Westwood Park strongly support protecting existing parks. They also support finding long-term support for the continued improvement of parks and the continued acquisition of new park property. Would like to encourage the group to support re-instating the F&B tax and would like a portion of it to go to support parks. Lynn Thompson thinks that the proposal for having a series of discussions is positive. She reminded the group that the budget committee has been asking for this for as long as she has been a member. She thinks it is a positive thing to include the Parks Commission in the broader discussion. She hopes that if the group can spend time before the budget process to deal with some of the specific issues in the General fund then maybe the budget process can be more focused. Paul Hwoschinsky stated that parks are a core value of Ashland and we need to take a longer-term view. Was frustrated that, when a recent housing development was created, 7 people were able to stop the creation of the park connected to the project. Suspects we will be having budget challenges at least until 2012 and we need to take a long-range view of budgeting. DISCUSSION OF NEXT STEPSIPROPOSED PROCESS Committee discussed the proposal for using study session and whether the priorities suggested by staff are their priorities and if the meeting schedule is acceptable. Councilor member Hardesty questioned what sorts of things staff envisions talking about in the revenue discussion. Ms. Bennett stated there are shorter-term revenue issues like fee policies and longer-term revenue issues like the tax rate and levies which need to be discussed. Ms. Bennett stated she would like to focus on priorities in these discussions rather than the specific number. The numbers will be discussed during the budget process. Councilor Hardesty voiced her support for the process. Commissioner Eggers supported the process but feels short-term and long-term issues are more closely tied than the proposal might suggest. She hopes that the short-term discussion will bring up long-term issues and that the groups can focus on both. Councilor Navickas stated he did not support the additional meeting because these topics are already covered in the budget process. He does appreciate including the Parks Commission but worries that it is just to help them feel better about the City taking away their funding. He stated that even though crime is going down we continue to add more police officers and we instead need to look at whether that is necessary. Ms. Bennett stated that taking away Parks funding is certainly not the intent of the meetings but both groups need to understand that they both face the same property tax revenue limits and need to work together. Councilor Hartzell stated she supports the process. She wants to insure that there is community involvement and would like to know if the meetings will be televised. Ms. Bennett stated that it might be a challenge to fit 19 people in the council chambers for televising but reminded the group that they will always be open to the public. Councilor Hartzell wanted to make sure that part of the discussion involves talking about what services have already been reduced and how that has affected the service levels. Commissioner Noraas has mixed feeling about the topics of the four meetings because she wonders if all the topics directly relate to the Parks Commission. Mr. Robertson stated that due to Measure 50 issues the --rrr~ l' ASHLAND CITY COUNCIL MEETING October 30,2008 PAGE 4 of4 budgets of the City and the Parks Department are more closely tied than previously. As the Parks commission doesn't regularly get to participate in the budget committee meetings this is their only opportunity to set their goals in relation to the city's goals. It will help all three groups to understand the highest priorities. Commissioner Noraas agreed that the City as a whole is changing demographics and we do need to focus on how to provide the correct services. Councilor Jackson is excited to have these additional meeting. She stated that we need to have the discussions regarding what are our priorities prior to the budget committee meeting. Commissioner Gardner isn't happy about the extra meetings but feels it is important to gain an understanding of both groups and their priorities. He hopes this will help to set up fairer guidelines for the budget process. Mayor Morrison supportive of this discussion and appreciates the opportunity to set priorities so that the priorities lead the discussion rather than dollars dictating policy. Commissioner Rosenthal is in favor of getting the opportunity to get the Parks message out to the Budget committee. Thanked Mayor Morrison and Councilor Hardesty for their service to the community. He considers the challenges of the loss of food and beverage tax and the development of parks property, maintenance in quality of service, and maintaining the ending fund balance to be the most important parts of these upcoming discussions for him. Also, the group needs to figure out how to maintain an adequate fund balance. Councilor Silbiger thinks this is a good start to a lengthy set of meetings and prioritizations. He believes we are looking at a severe economic downturn and this is a good start to working out these issues. Commissioner Lewis would be glad to attend the meetings as long as at least part of these discussions involves the balance of Parks/City funding. He would also like to include discussion on F&B tax. Councilor Chapman thinks this is a positive process and the right mix of people. His only concerned about how we can structure a meeting with 19 people so that anything gets done. He hopes staff will develop a good plan. Councilor Hartzell wanted further details about what staff sees as the outcome of these meetings. Ms. Bennett thinks each department need to come talk about what services they currently provide, how they can provide those services better, and what they are hoping to achieve in the future. The group then needs to have discussions about the relative importance of each service provided so that if reductions become necessary during the budget process staff will know where cuts may be more acceptable. Mr. Robertson stated that including the Parks in the discussion is important because they have relationships with all the departments. Councilor Hartzell would also like information about what other communities are doing regarding their provided service levels. ADJOURNMENT Meeting was adjourned at 8:43 p.m. Diane Ship let, Executive Secretary John W. Morrison, Mayor -mmT CITY COUNCIL STUDY SESSION November 3,2008 Page 1 of2 MINUTES FOR CITY COUNCIL STUDY SESSION Monday, November 3,2008 Council Chambers, 1175 East Main Street Council Chair David Chapman called the meeting to order at 6:05 p.m. in the absence of Mayor John Morrison. Councilors Hardesty, Navickas, Hartzell, Jackson and Silbiger were present. 1. Does the Council have questions for the City Recorder about the City's Investment Policy or about the status of the City's current investments? City Recorder Barbara Christensen explained the City had a strong, conservative investment policy. The City currently had 820/0 invested in the Local Government Pool, 15% in Government Agency Securities and 30/0 invested in Certificates of Deposits. The Local Government Investment Pool (LGIP) maintains 900+ members, consisting of County, City and Local Government Entities and money from these entities are pooled and managed by the Oregon State Treasury (OST). The Oregon State Treasury has an advisory board who advise in the management and investments of the pooled money. This Board consists of the State Treasurer, three non-public members and three members who are Treasurers, Finance Officers or Business Managers in local government that manage the investment portfolio. The approved LGIP Investment Policy dictates that securities mature at less than 3 years. Investments are staggered so they mature at different times and diversification is important. Ms. Christensen reported that a Senior Investment Officer from OST had clarified that when Asset Backed Securities started to fail, the State Pool made appropriate changes to the portfolio and confirmed that the final security matured in October 2008. When this final security matured, there were no more investments in Asset Backed Securities. Ms. Christensen explained that there are several factors used when purchasing securities for investment and examples were provided. She stated that LGIP's current focus is on liquidity as they respond to the current market. Ms. Christensen recommended having the Oregon Short Term Board review the City's current investment policy, make recommendations and present to Council for approval. When questioned on LGIP's relationship with State Street, she explained th~t the Senior Investment Officer from OST had stated that State Street is not allowed any additional investing than the Oregon Short Term Board allows them to do. 2. Review of regular meeting agenda for November 4, 2008 City Administrator Martha Bennett reviewed the agenda with council with the following comments: . Should the Council conduct and approve First Reading of an ordinance titled, "An Ordinance Amending Chapter 2, Administration, Adding Section 2.13, Transportation Commission; Repealing Section 2.22 Bicycle and Pedestrian Commission and Repealing Section 2.26 Traffic Safety Commission" and move the ordinance on to Second Reading? Boards and Commissions can appoint Ad Hoc and Sub-Committees at any time. If they are Sub- Committees that deliberate on an item that eventually goes to Council, they need to follow Oregon Public Record Law. Official Sub-Committee rules would apply if someone not on the board were appointed. Council asked staff to revise the new bulleted paragraph under Powers and Duties III the Transportation Commission Ordinance on page two. . Should the Council approve an AFN wholesale and retain rate increase to offset an increase in operating expenses? CITY COUNCIL STUDY SESSION November 3, 2008 Page 2 of2 Interim Information Technology Director Michael Ainsworth explained there were no entities with a contract or long-term agreement with Ashland Fiber Network (AFN). The majority of customers were garnered through retailers. AFN had projected a 5% growth in subscriber accounts and experienced 2.3% customer growth. . Does the Council wish to enter into a purchase agreement to acquire 10 acres on Clay Street to be used for a public park and an affordable housing project in partnership with the Housing Authority of Jackson County? Senior Planner Brandon Goldman explained that Resolution 2006-13 identified the income levels for households that would qualify for affordable housing. The Housing Authority would provide some units at 500/0 and some at 60% but were looking at a 30%-60% Area Median Income (AMI) range so that all participants have income to contribute to rent. Mr. Goldman was asked to provide information from the Jackson County Assessment Office on the original purchase price for the Clay Street property for the regular meeting session 11/4/08. 3. What are the Council priorities for city facilities and properties based on the information provided in the Facilities Master Plan Report? Does the Council wish to place a bond measure on the 2010 ballot for public safety improvements? Council determined that Fire Station # 2 was the top priority for the Facilities Master Plan. It will require voter support and November 2010 as an election time frame was discussed. Ogden Roemer Wilkerson Architecture was able to bring the price down since the building did not require a downtown look and will research more ways to economize. Concern was expressed that the Food and Beverage Tax needs to come first. The second priority for the Plan was the Police Department building. It would require voter approval as well and there was a discussion on bringing it to the public in 2012. The Police Department might be able to offset 10%-300/0 of the cost with Forfeiture Funds. Using trailers or pre-fabricated buildings for evidence storage would not meet the City's needs long-term but might be sufficient for office space in the interim. Logistic and cost concerns were raised during a discussion on the benefits and negatives of moving Finance to the Grove and adding to the Community Development building. The desired intention was to have City Hall remain downtown. It was decided to resolve the issues with the Grove prior to redoing City Hall and have staff develop 2-3 scenarios for the Grove after planning the Fire and Police department interim strategies. Council suggested consulting with other agencies on consolidating space and asked staff to research various surplus properties for office space potential. 4. Look Ahead Review The Council Look Ahead was not reviewed. Meeting was adjourned at 8:28 p.m. Respectfully submitted, Dana Smith Assistant to the City Recorder u--nr T ASHLAND CITY COUNCIL klEETlNG November 4. 2008 PAGE I of9 MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL November 4, 2008 Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Morrison called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers. ROLL CALL Councilor Hardesty, Navickas, Hartzell, Jackson, Silbiger and Chapman were present. MAYOR'S ANNOUNCEMENT OF BOARD AND COMMISSION VACANCIES Mayor Morrison noted vacancies on the Public Arts Commission, Citizen Budget Committee (deadline for applications is November 7, 2008) and the three vacancies on the Tree Commission. SHOULD THE COUNCIL APPROVE THE MINUTES OF THESE MEETINGS? The minutes of the Study Session of October 20, 2008 and Regular Council meeting of October 21, 2008 were approved as presented. SPECIAL PRESENTATIONS & AWARDS The Mayor's Proclamation of November as American Indian Heritage Month and Proclamation of November as National Family Caregiver Month and National Alzheimer's Awareness Month were read aloud. CONSENT AGENDA 1. Does the Council accept the Minutes of Boards, Commissions, and Committees? 2. Does the Council wish to ratify the new Labor Agreement between the City of Ashland and the Laborers Local No. 121? 3. Should Council accept the quarterly financial report as presented? 4. Should the Council approve the attached Findings of Fact, Conclusions of Law and Order for Planning Action 2008-00182 (500 Strawberry Lane) and transmit the Revised Findings to LUBA? 5. Should the Council approve a resolution titled, "A Resolution to Recognize the Conveyance of Property and Amending Resolution 85-47"? 6. Should the Council authorize an Agreement with the Waters-Oldani Consulting Group, Inc. for professional recruitment services at a bid price of $25,000? Councilor Jackson/Silbiger mls to approve Consent Agenda items. Voice Vote: all AYES. Motion passed. PUBLIC HEARINGS 1. Does the Council wish to enter into a purchase agreement to acquire 10 acres on Clay Street to be used for a public park and an affordable housing project in partnership with the Housing Authority of Jackson County? Conflict of Interest: Councilor Hartzell stated that she was recently appointed to the Board of the Housing Authority of Jackson County (HAJC) by the County Commissioners Office and confirmed there is no conflict of interest. Councilor Hardesty explained that she had spoken to representatives of the Housing Authority of Jackson County (HAJC) and visited one of their housing sites but did not believe it was a conflict of interest. Mayor Morrison clarified that the Westwood property was not part of the transaction being discussed and not --------------~~-~~-----~---- ~~TI'-T ASHLAND CITY COUNCIL A1EETING November 4.2008 PAGE 2 019 part of the decision Council would be making this evening. Senior Planner Brandon Goldman explained that the Clay Street purchase entailed trading the 7,000 square foot parking lot on Lithia Way, three half-acre lots at the top of Strawberry and Westwood and in addition $620,000 towards the acquisition. Council would determine if the value of the property being traded equaled or exceeded the value of the property received through the transaction. The appraisals showed a $165,000 amount in favor of the City. In addition, HAJC would contribute $1,280,000 towards the purchase and an additional $80,000 towards the restoration and mitigation of wetlands on the property. The City would acquire an asset of6 acres with a value of $2,160,000. Mr. Goldman explained that despite the economic down turn, rent and the demand for rentals in Ashland had continued to increase. Ashland's Housing Needs Analysis showed that 56% (60/0 college students) of the residents renting in Ashland were paying more than 30% of their income for rent. Salaries in the area had not increased in the past three years but rent had showing the need for affordable housing. Various subsidies for affordable housing came to just over $11,000 per unit where subsidy ranges for RVCDC projects using Community Development Block Grants (CDBG) were between $49,000-$54,000. The Housing Authority's proposal would inject over 10 million dollars in new construction costs into the local economy. They would receive these funds from Low Income Tax Credits and State Grants. The Oregon Housing and Community Services conducted a study of three recent affordable housing projects and realized there was a $1.96 increase in economic activity for every dollar spent on affordable housing construction. This multiplier could infuse 20 million dollars into the local economy. In addition, the Housing Authority recently applied for CDBG funding to offset the costs of full street improvements on Clay Street and the development of internal streets. Mr. Goldman explained that of the 6 acres, the Parks Commission was interested in buying four at $1,440,000. If the Parks Department decided to contribute to half the cost of the wetlands, it would bring the total up to $1,620,000. The amount was sufficient to pay back the Lithia lot's $500,000 value and the inter-fund loan with a remaining $500,000 that could possibly go to the Housing Trust Fund. The property was zoned R2 Multi Family and had development potential on its own. If the Parks Department did not purchase the property, the City could extend the inter-fund loan two years then sell the property to a private developer to recapture funds. The City Parks Commission would use the property to expand the City YMCA Park to create active ball fields. The Housing Authority identified they had the capacity to build the units but collaborated with the City in terms of buying the four acres of property. This addressed the original concern on how the City would get the housing built if they purchased the full ten acres. The proposal from HAJC indicated how that would be achieved. City Administrator Martha Bennett explained that if the property did not sell, Council could lower the price or refund the inter-fund loan. The property would be an attractive purchase because the infrastructure was already established along with the development approval. With the one million dollar buffer, Council could sell a portion of the land to pay back the loan as well. City Attorney Richard Appicello explained that Council was not constrained when purchasing property as long as it was a valid public purchase and there were available funds. The Public Hearing was for the disposition of the property, because of the land exchange. Council needed to make a Finding that they were furthering public interest in the disposing of the lots and that the land value associated with the disposition was equal. The Findings provided in the packet showed the proposed plan favored the City. The Housing Authority's proposal to develop the four acres in their plan would be what was built if approved. ASHLAND CITY COUNCiL AfEETING November 4, 2008 PAGE 3 of9 The City would own the remaining 6 acres and decide whether it became parkland or additional housing. Ms. Bennett added that accepting the proposed plan would require an Intergovernmental Agreement (IGA) with Jackson County Housing Authority and Council approval. The City obtained two appraisals by licensed professional appraisers that used different assumptions with one appraisal at $3,940,000 and the other at $3,200,000. The $3,940,000 appraisal assumed the affordable housing component could be sold to the Housing Authority for $300,000. When the City commissioned their appraisal, staff decided it was not reasonable to assign a $300,000 value on the affordable housing component when it had a market value with one entity to purchase it. The Appraiser discounted the $300,000 and reduced the value of the property from 117 to 107 units. At $30,000 per unit, it was further devalued another $300,000 and that accounted for the difference between the two appraisals. If the Housing Authority built 60 units on the five acres remaining there would be a 13.5 - 15 unit per acre potential which would exceed 107 units total. Ms. Bennett clarified that the City was only required to charge interest on the inter-fund loan but could charge the Parks Department the interest on the opportunity costs of the City holding the land. Public Hearing open: 7:57 p.m. Mayor Morrison shared portions of comments submitted by local citizens. John Gaffey wrote opposing the land swap. Heidi Parker and Ruth Alexander supported the property acquistion, both noting the need to provide housing for younger families. Steve Ennis was in support of the proposal. Aaron Benjamin supported the project and stated it would represent a unique opportunity for the City to make a step toward achieving affordable workforce housing. Egon Dubois/381 W Nevada Street/Spoke in opposition of the proposal. The estimates and the presentation were misleading. The properties up for trade did not take into account sell ability. The current proposal was vague and a gamble. The Council was being asked to vote on something without knowing all the facts. He did not believe Council should be rushed to make a decision without a clear proposal. Jason Elzy/Housing Authority of Jackson CountyNoiced his support and provided handouts to Council. The 60 units of housing the Housing Authority proposed to build would target working families. The two and three bedroom units would house 86-106 children at any given time. Currently the Housing Authority offered only six units in its inventory of nearly 1,000 managed throughout the region. The Census Status showed how Ashland exceeded the State's average of rent burdened households by 21 % and was the 15th most rent burdened community out of 134 Oregon cities and counties. In 2000, Census data revealed that 72% or 922 low-income renters were rent burdened in Ashland, in the last 7 years it increased more than 100/0. Oregon Housing and Community Services considered Ashland to be one of the highest priority communities in the state of Oregon. William Smith/1131 Barrington Circle/Chair of the Housing Commission he explained the Housing Commission unanimously granted Jackson County CDBG funds based on the merit of their proposal. The Housing Commission visited Maple Terrace, found it family friendly, and well maintained with good quality construction. He supported the proposal. Karen Clearwater/2510 Oakmont, Eugene/Represented the Oregon Housing and Community Services as the Regional Advisor for Southwest Oregon. She reiterated that Ashland was rent burdened and by being a priority one for the State the application to the State of Oregon would be enhanced. She encouraged Council to choose the Jackson County Housing Authority plan. Eric Dukes/2325 Ashland StreetJExplained he was not there to speak out against affordable housing but as the voice of fiscal responsibility. The economy was the worst since the great depression. According to Forbes magazine this was also the worst housing in 20 years and was not expected to get better any time soon. The - --n;- T ASHLAND CITY COUNCIL IvIEETlNG November 4,2008 PAGE 40/9 proposal from a financial standpoint was based on speculation and a risky deal. He noted that there were currently 14 lots for sale in the Strawberry Lane area, all for less than what the City would sell their properties. The purchase did involve the Parks Department and could result in selling existing parkland. He strongly encouraged the Council to look at the project from a tight fiscal responsibility standpoint. Ron Roth/6950 Old 99S/Noted how long he had lived in Ashland and where his employees resided. The proposal was potentially one of the greatest things that could be done for the community. He voiced his trust of staff and the other groups who had worked on the project and encouraged CouRcil to approve the proposal. Albert Pepe/321 Clay Street #21/Explained that he lived across the street from the proposed property. He agreed with affordable housing but adding 60 units to the area would create crowding. There were already issues with traffic. He recently received a notice about another new development near Clay Street that would block the left hand turn lane onto Ashland Street from Clay Street adding more traffic problems. He commented that a community garden or open space might be a better way to create community instead of ball fields. He advised Council to look at the whole picture and not just parts. Beverly DeLeonardis/737 Gibbon Rd, Central Point/Represented Oregon Action and explained they were a grassroots social justice community organization that had long supported and worked for quality affordable housing in southern Oregon. She noted the how many families had moved out of town and two elementary schools were closed emphasizing the serious demographic imbalance in the community. The project location, size and scale met the best practice goals for developing a strong community. The economics for this project would provide a huge multiplier that would positively affect local economy. Rich Rohde/124 Ohio/Explained he had been involved with Oregon Action and affordable housing in Ashland since the Housing Commission was formed in the 1990' s. He thought the project was a good place to take affordable housing to the next step in Ashland and urged Council to support it. Evan Archerd/550 E Main StreetlReiterated previous comments that the land was ideal because it was flat, easy to develop, close to bus stops and within walking distance to shopping. The project made financial sense because HAJC was willing to put up $1.8 million dollars to fund the project and the seller was willing to take a large percentage of the project in trade. By working with the Housing Authority, there was access to State and possible Federal funds to build the project. He urged Council to support the project. Mark Knox/485 W Nevada Street/Spoke as a citizen and noted everyone's efforts who worked on the proposal. The size of the property would achieve the numbers that made the project feasible. He pointed out that the 107 units the Appraiser addressed was the minimum and the numbers could be 135-169 units for the 10 acres. He hoped that if there were room for more affordable housing that HAJC and the City would increase the number of units. Nick Frost/963 Tolman Creek Rd/Explained he was there to talk about West Wood. He supported affordable housing for Clay Street but the process had created a false division in the community. One side viewed it as trading the parkland of rich people for homes for 60 families and the other side saw the trade of open parkland as more city-managed-pesticide-sprayed ball fields. Both sides were well intentioned. The project was a complex deal that's lack of public input had divided well-meaning citizens. Most of the advocates on West Wood were not opposed to affordable housing only to the trade of public open space for ball fields. He asked that future processes for projects like Clay Street be more public and urged Council to approve the proposal. City Attorney Richard Appicello clarified that the seller had reviewed the purchase and sale agreement and had requested some changes. If Council made a motion, they should authorize the City Administrator to negotiate minor modifications to the agreement. 1rT ASHLAND CITY COUNCIL /l.1EETlNG November 4.2008 PAGE 5 019 Public Hearing closed: 8:39 p.m. 2. Should the Council approve an AFN wholesale and retain rate increase to offset an increase in operating expense? Interim Information Technology Director Michael Ainsworth provided the staff report. The rate increase would cover inflation driven expenses that were growing faster than revenue that was currently on target but would result in a $70,000 overage in expenses by the end of the fiscal year. The increase in expenses came from materials. The proposed rate increase would affect the wholesale resident internet services and not agreements with SOU, the hospital or the school district. The minimum rate increase would cover the projected overage and expenses for the fiscal year and would be the first increase for 900/0 of AFN customers since 2005. Pending FCC approval, the industry was moving towards a consumptive base rate that would eliminate the need to come back to Council for future rate increases. Public Hearing open: 8:56 p.m. Public Hearing closed: 8:56 p.m. Councilor Jackson/Silbiger mls to approve Resolution #2008-38. Roll Call Vote: Councilor Silbiger, Jackson, Hartzell, Chapman, Navickas and Hardesty YES. Motion passed. CONTINUED DISCUSSION on item #1 Public Hearin2 Councilor Navickas/Hartzell mlS to approve of the land exchange of City Property including the disposition of three undeveloped residential lots on Strawberry Lane and Westwood Street and the Lithia Parking lot as expressed in the attached Findings of Fact, and enter into a purchase agreement for acquisition of the 10-acre Clay Street property in partnership with the Housing Authority of Jackson County and allowing minor amendments by City Administrator. DISCUSSION: Councilor Navickas explained by providing affordable housing, the community was focusing on economic development for businesses to invest in the community and the diversity of people and age groups the community was rapidly losing. He encouraged Council to move forward with the project. Councilor Hartzell wanted to ensure that some of the reimbursement money associated with Lithia Way Lot was dedicated for parking related problems. Councilor Hartzell/Jackson mls to amend the motion on the table to ask staff to propose an easement for a street connection to Tolman when they return with the partitioning proposal. DISCUSSION: Councilor Jackson noted that aD aT might constrain the use and circulation on Ashland Street and establishing a public easement for future use that could be abandoned if the project failed was a relevant part of the land deal. Councilor Chapman commented the project should include higher density, conservation, zero net energy building as well as a long-range transportation plan for the area, with bicycle and pedestrian connections. Roll Call Vote: Councilor Hardesty, Hartzell, Silbiger, Navickas, Jackson YES; Councilor Chapman, NO. Motion passed 5-1. Councilor Hartzell/Silbiger mls to amend motion to indicate that it is Council's interest in dedicating any recapture of funds related to the Lithia Lot from the future sale of a portion of this property be put back into addressing parking problems downtown. DISCUSSION: Council discussed the amount that would go to addressing parking issues. Councilor Silbiger commented the exchange would be a double negative for downtown parking by losing 13 spaces. The amendment was a fair way of recapturing that value and was a reasonable trade off. Councilor Hardesty asked to rephrase the motion so that no more than $500,000 would go towards parking related issues, including public transportation. Councilor Jackson supported returning the $500,000 into the downtown area. Councilor Navickas could support using the money IrT AS'HLAND CITY COUNCIL /l/fEET/NG November 4, 2008 PAGE 60f9 in the downtown area for a plan or investment in pedestrian amenities but stressed it was important to look at the other priorities like housing and commercial space that would revitalize the downtown area. Councilor Hartzell withdrew the motion. Councilor Hardesty/Hartzell mls to amend original motion that Council would direct staff to use the money recaptured from Lithia lot towards transportation and parking related issues in the downtown area. DISCUSSION: Ms. Bennett clarified that the inter-fund loan would be paid first. Roll Call Vote: Councilor Hardesty, Hartzell, Silbiger, Navickas, Jackson YES: Councilor Chapman, NO. Motion passed 5-1. Continued Discussion on original amended motion: Councilor Hardesty supported the project; it was not perfect but close. Councilor Jackson commented on fiscal responsibility noting the majority of the purchase was land trade. Councilor Chapman wanted a cost benefit analysis of the City prior to supporting the project stating it was too nebulous for a decision and would not support it as it was. Councilor Silbiger supported the project. The City was looking at real economic problems in the future but in an economic crisis with a housing downturn, Public Works was one of the things that brought the country out of the great depression and this project would put people to work. Mayor Morrison strongly approved the project explaining there had been a need for affordable housing in Ashland for the past ten years. It would bring 1.3 million dollars into Ashland from the outside of the community. There were details and land variables that would require attention but the timing was right for the proj ect. Roll Call Vote on original amended motion: Councilor Hardesty, Hartzell, Silbiger, Navickas, Jackson YES; Councilor Chapman NO. Motion passed 5-1. PUBLIC FORUM None UNFINISHED BUSINESS 1. Will Council approve the attached resolution authorizing water revenue bonds up to $5,975,000 and giving sixty days notice of the potential sale? Administrative Services Director Lee Tuneberg presented the staff report and explained a recent correction to the resolution reflecting an amount change up to $5,975,000. The change in the amount provided a cash reserve for these bonds and the 2003 bonds. The 60-day public notice informed the public that the City would incur debt. Councilor Hartzell/Jackson mls to approve Resolution #2008-37. Roll Call Vote: Councilor Hartzell, Jackson, Hardesty, Chapman, Navickas and Silbiger, YES. Motion passed. NEW AND MISCELLANEOUS BUSINESS 1. Should the Council authorize the City Administrator to execute a 20-year Load Following Power Contract with the Bonneville Power Administration? Director of Electric Utilities Dick Wanderscheid and Bonneville Power Administration Account Representative for the City of Ashland Tina Ko presented staff the report. Mr. Wanderscheid explained that staff was exploring alternative energy options to bring to Council November 2009. In the event that residents decreased energy use or large uses like the University closing, the Tier 1 power would be so valuable Bonneville Power Administration would remarket it and credit it back to the City. The City currently used block rates, if a user consumes more power it is reflected on their bill. For the new ------rr-T A,)'HLAND CITY COUNCIL klEETlNG November 4.2008 PAGE 70f9 rates, it could be set as a standard at the Tier 2 rates so they would pay the marginal cost. The State of Oregon' s renewable requirement is 5% of the City's load should be renewable energy by 2025. The City currently met that requirement by purchasing 5% of Environmentally Preferred Power from Bonneville Power Administration. The requirement for renewable energy cannot cut into Tier 1 power. The contract with Bonneville Power Administration would guarantee a supply of the Federal Hydro system for 17 years with rate reviews every two-three years. Councilor Chapman/Hartzell mls to authorize the City Administrator to execute a new 20 year Load Following contract with Bonneville Power Administration. Roll Call Vote: Councilor Hardesty, Silbiger, Jackson, Chapman, Hartzell and Navickas, YES. Motion passed. ORDINANCES~ RESOLUTIONS AND CONTRACTS 1. Should the Council conduct and approve Second Reading of an ordinance titled, "An Ordinance Amending Chapter 10.46, Prohibiting Camping, Revising Penalties, Clarifying and Amending Timeframes and Procedures, and Other Requirements"? City Attorney Richard Appicello read the ordinance title in full with additional language in Section 3 paragraph 10.46.050 Penalties, Sub-paragraph B: "...consistent with ORS 137.128, up to 48 hours of community service may be ordered by the court and such service may include clean-up of illegal campsites.. .." Councilor Hartzell/Chapman mls to approve Ordinance #2972 with noted amendments. Roll Call Vote: Councilor Jackson, Navickas, Silbiger, Hartzell, Chapman and Hardesty, YES. Motion passed. 2a. Should the Council conduct and approve the Second Reading of an ordinance titled, "An Ordinance Amending the Ashland Land Use Ordinance Annexation Chapter (AMC 18.106.030) Concerning Affordable Housing Standards for Annexation"? City Attorney Richard Appicello read the ordinance title in full. Senior Planner Brandon Goldman explained the equivalency values as structured provided an incentive to do rental-housing units because the City could provide fewer by the equivalency value of 1.5 times the regular unit. It was a density disincentive to move up the economic income range because more housing units would have to be provided at the ownership housing level. Councilor Jackson supported the mixed income levels but voiced strong concern that Council was adding vague standards like comparable materials. Ashland had a complex approval process and it could easily make projects more costly. Councilor Hardesty/Hartzell mls to approve Ordinance #2973. DISCUSSION: Councilor Hartzell clarified that the Planning Commission discussed comparable materials and the group arrived at a level of comfort with the requirements. Councilor Chapman commented that Council needed a metric tool to analyze whether annexation was beneficial to the City. Roll Call Vote: Councilor Silbiger, Hartzell, Navickas, Hardesty and Jackson, YES; Councilor Chapman, NO. Motion passed 5-1. 2b. Should the Council conduct and approve the Second Reading of an ordinance titled, "An Ordinance Amending the Ashland Land Use Ordinance Type III Procedures Chapter (AMC 18.108.060) Concerning General Standards for Affordable Housing in Zone Changes"? City Attorney Richard Appicello read the ordinance title in full with additional language to Page 2 18.108.060 B Sub-section 1, "...one or more of the following...;" various changes to A-E and a typographical error on ~rr~ T -- ASHLAND CITY COUNCIL A1EEI1NG November 4. 2008 PAGE 8 0/9 page 3 at the end of D where an "or" should not have been stricken. Councilor Jackson/Hartzell mls to approve Ordinance #2974 with noted amendments. Roll Call Vote: Councilor Navickas, Hardesty, Jackson, Silbiger and Hartzell, YEs: Councilor Chapman, NO. Motion passed 5-1. . 3. Should the Council conduct and approve First Reading of an ordinance titled, "An Ordinance Amending Chapter 2, Administration, Adding Section 2.13, Transportation Commission; Repealing Section 2.22 Bicycle and Pedestrian Commission and Repealing Section 2.26 Traffic Safety Commission" and move the ordinance on to Second Reading? City Attorney Richard Appicello read the ordinance title in full along with the following changes to the language on page 2 of 5 section C. Powers and Duties, first bullet after #2 ending the following sentence after process: "The meetings of the Transportation Commission are not to be considered a part of any Land Use Hearings process." and strike the following".. .and the records of the proceeding shall not be part of the record Land Use case however the Transportation Commission may review and submit recommendations to the Public Works Department regarding planning applications that may impact arterial or collector streets as they relate to the Transportation System Plan. This review will only take place in the pre-application phase." Under #4 Advocacy, the third bulleted item, changed "multi-model" to "multi-modal". In 2.13.050 Traffic Sub-Committee under paragraph B. Membership, following language was added to the last sentence following "The Public Works Director..." add, "...shall determine what matters warrant Sub-Committee involvement and meetings shall be convened on an as needed basis." Councilor Jackson/Silbiger mls to approve first reading with noted amendments and place on agenda for second reading of Ordinance. DISCUSSION: Mr. Appicello clarified that the language concerning Sub- Committee involvement covered the frequency of meetings. Councilor Navickas suggested giving the Transportation Commission quasi-judicial responsibility for Type ill action. City Administrator Martha Bennett clarified that allowing quasi-judicial responsibilities entailed amending Chapter 18, which was why Council had previously decided against it. Councilor Hartzell/N avickas mls to amend original motion to change language in Page 2 of 5, Section C. Powers and Duties, Generally, #2. Planning: "Will make recommendations to the City's Transportation Plans; Add the following second bullet: . Will review and serve as the primary body to develop recommendations to the City's long-range transportation plans. Add the following to the first bullet prior to the language regarding meetings: . Will review and make recommendations to Type III Planning Actions during the pre- application process. Roll Call Vote: Councilor Silbiger, Jackson, Hartzell, Navickas and Hardesty, YES; Councilor Chapman, NO. Motion passed 5-1. Councilor Jackson/Silbiger mls to approve first reading with noted amendments and place on agenda for second reading of Ordinance. Roll Call Vote on first reading with the City Attorney's amendments: Councilor Silbiger, Jackson, Hartzell, Navickas and Hardesty, YES; Councilor Chapman, NO. Motion passed 5-1. -~~~ --rr r ASHLAND CITY COUNCIL A1EETlNG November 4.2008 PAGE.9 of9 OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS ADJOURNMENT Meeting was adjourned at 10:29 Barbara Christensen, City Recorder John W. Morrison, Mayor ~-II--' ~ --- ASHLAND AIRPORT COMMISSION October 7, 2008 MINUTES MEMBERS PRESENT: LINCOLN ZEVE, DAVID WOLSKE, ALAN DEBOER, BOB SKINNER, GOA LOBAUGH STAFF: SCOTT FLEURY MEMBERS ABSENT: TREGG SCOTT, RICHARD HENDRICKSON, RUSS SILBIGER AND BRITTANY WISE Visitors: Alan Bender, Scott Rolston 1. CALL TO ORDER: 9:30 AM 2. APPROV AL OF MINUTES: August 5, 2008, Motion by Lobaugh for approval, second by DeBoer, unanimous vote, minutes approved as written. A. Additional Items: SuperAwos Discussion 3. Public Forum: No public comments. 4. OLD BUSINESS: A. Hangar Door Installation: Skinner has no new update regarding installation. He is going to work on obtaining a new quote for engineering and installation of the doors. Once a reasonable bid is in place the Commission can work towards a payback schedule for Skinner. B. Lindner letter and lease package: Lindner has received copies of lease's and letter regarding construction and lease requirements. Fleury received signed copy of letter acknowledging receipt by Lindner. Lease to go before the City Council for approval. City of Ashland has not received deposit for hangar space reservation. C. DC-3 hangar construction: Fleury received 2000.00 deposit from John Phelps for space reservation in order to construct a 24,000 sq-ft hangar to house the DC-3 aircraft. Fleury sent letter to Robert Davis acknowledging receipt of deposit check. 5. NEW BUSINESS: A. QT-Technologies Fueling Terminal Service Agreement: Skinner states in the past they have had the Platinum Level service agreement due to issues with the circuit boards and display panel. Problems with system have improved with new installations but Commission is still wary of having a system breakdown thdt is not covered with the service agreement. Wolske motions to keep Platinum Level Service Agreement, 2nd by Skillman and approved by unanimous vote. Fleury to call QT and have invoice sent to City for Platinum level service. B. Potomac SuperAwos: Skinner informs the Commission that the SuperAwos needs to be inspected on an annual basis by a trained technician. Training is available online and is about 15 minutes in length. The training covers various issues regarding the SuperAwos including altimeter and visibility sensor adjustments. Skinner recommends that someone within the City take the training and Potomac to assist in getting the C:\DOCUME-1 \shipletd\LOCALS-1 \Temp\October 7 DB.doc 1 --rr-T certification paperwork through the FAA. C. Crowman Mill Site: Fleury discusses building heights with the Commission for the Crowman Mill Site and how to calculate max elevation based on the Airport Encroachment Zone Maps (FAR 77). It is the Commissions opinion that it is up to the consultants to verify building height restrictions. D. Rental Rate Approval: The rentals rates were supposed to go to City Council for approval, but the issue was postponed due to re-writing of the resolution. Once new resolution is written rates will go before Council for approval. E. A vigation Easement: The Commission looked over the A vigation Easement written by City Planning and has no issues with it. Commission talked over ideas about how to tie the easement into tax-lots that are in the overlay zone and do not have the hold harmless agreement in place. It appears the only way to tie the easement into tax-lots that do not have it in place is through a planning action when the Property Owners improve their dwellings. 6. AIRPORT MANAGER REPORT/FBO REPORT/AIRPORT ASSOCIATION: A. Status of Airport Financial Report Review of Safety Reports: Skinner states they are working through some payment issues with aircraft owners over tie downs. B. Maintenance Updates - Fleury to setup a hangar inspection with City of Ashland Fire and also Dale Peters of Facility Maintenance. Fleury to also setup an electrical audit to determine which hangars have PP &L and which have City of Ashland Power. 7. OTHER: The meeting of the JC airport commission is the third Monday of the month at 12:00 PM. 8. NEXT MEETING DATE: November 4,2008,9:30 AM ADJOURN: Meeting adjourned at 10:49 AM C:\DOCUME-1\shipletd\LOCALS-1\Temp\October 7 D8.doc 2 .....J..~_~----~- CITY OF ASHLAND Council Communication Measure 49 Claim: 27.25 acres off Hitt Road November 18, 2008 Primary Staff Contact: Martha Bennett City Administrator E-Mail: bennettm@ashland.or.us Administration Secondary Contact: Richard Appicello Martha Benn Estimated Time: Consent Meeting Date: Department: Secondary Dept.: Approval: Question: Should the City Council make a final decision denYing the Measure 49 claim for approximately 27.25 acres ofW-R zoned land located at the end ofHitt Road (Tax Map/Lot T39SRIE, Section 8DB, Lot 200) and notify DLCD and the claimants of the final decision? Staff Recommendation: Staff recommends Council deny the Measure 49 claim. Background: A claim under Section 9 and 10 of Measure 49 was filed with the City on February 20,2008. This claim is based on a previously filed Measure 37 claim dating back to November 2006. Measure 49 requires the City to make a tentative decision within 120 days of submission of the claim as to whether the claim meets the standards of Section 9 for relief (up to ten single family residential units). The City made the tentative decision denYing the claim on September 2, 2008. DLCD and the claimants were notified of the tentative decision and given 15 days to submit argument or evidence in response. No evidence or argument was submitted. As such the City has no additional argument or evidence to take into account in reaching the final decision. The City's final decision must be made on or before November 20, 2008. A final decision on a Measure 49 claim is reviewable by Writ of Review, ORS 34.010 to 34.100. Section 16 (3) of the Act limits judicial review of a final M49 determination to the evidence in the record at the time of the final determination. In addition, review is available only for issues that are raised before the public entity with sufficient specificity to afford the public entity an opportunity to respond. Proposed findings for the Final decision are attached for review by the Council. The complete record of this proceeding is available for review in the City Administrator's office. In short, as with the tentative decision, the final decision finds the claim is disqualified from relief under Section 9, Measure 49 because the claimants did not submit a qualifYing appraisal under the Act within the time provided. On the merits, the failure to submit the required appraisal also makes it impossible to determine if the claimants are eligible for relief under the Act. Related City Policies: Measure 49, W-R Zoning District, Physical/Environmental Constraints Overlay for Hillside Lands Council Options: 11-18-08 M 49 Claim Page 1 r~' --IIT- CITY OF ASH LAN D (1) Approve the attache Findings of Fact, Conclusion of Law and Order denying the claim and notify claimants and DLCD. Potential Motions: Motion to approve the attached Findings of Fact, Conclusions of Law and Order denying the Measure 49 claim and notify claimants and DLCD of the decision. Attachments: Findings of Fact, Conclusions of Law and Order w/ Exhibits 11-18-08 M 49 Claim Page 2 r&, ~---lIT- BEFORE THE CITY COUNCIL CITY OF ASHLAND, JACKSON COUNTY, OREGON November 18,2008 In the Matter of Final Decision on a Ballot Measure 49 Claim, ), pursuant to Section 9 of the Act, requesting the right to permit, ) without limitation, the creation, division, development, and/or ) FINDINGS OF FACT subsequent sale of 10 (two acre) legallots with a single family ) CONCLUSIONS OF LAW dwelling on each lot, located on real property within the city limits) AND ORDER of the City of Ashland, Jackson County, Oregon more particularly ) described as Tax Map/Lot T39SRIE, Section 8DB, Lot 200, ) a/k/a 766 Strawberry Lane, consisting of approximately 27.25 ) acres of land. ) ) ) ) Applicant: George Harshman, Virginia Wilt, Wilt Family and Tri-W Group L.P. I. NATURE OF PROCEEDINGS This matter comes before the City Council for the City of Ashland for a final decision on a Ballot Measure 49 claim, filed under Section 9 and 10 of the Act. This November 18,2008 final decision follows a September 2, 2008 tentative decision denying the claim. The claimants did not submit evidence or argument in response to the tentative decision. The claimants and DLCD will be advised of the final decision. On November 29,2006 a Measure 37 claim was submitted by Attorney William Cox on behalf of "George and Patsy Harshman". On February 16, 2007 City Administrator Martha Bennett mailed a letter to Attorney Cox indicating the application was incomplete, including failure to include all owners, (noting the omission of an application from "Tri- W Group" listed as owner of 500/0 undivided interest of the parcel). Mr. Cox responded on February 29,2006 by submitting evidence that the City Planning Department signed for receipt of the Tri-W Group application on November 29,2006. The City received another copy of the Tri-W claim on March 12,2007 as well as materials to address the completeness of the Harshman claim. On July 5, 2007 City Administrator Martha Bennett sent a letter to Attorney Cox notifying him of the extension of time granted by the Oregon Legislature for consideration of Measure 37 claims; the letter also notified Attorney Cox that the application for Tri- W Group was also incomplete. Oregon Voters enacted Ballot Measure 49 in November 2007, effective December 2007. The Act essentially FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -1- - ~-rr-T--- abolished Measure 37; however, it provided a process for applicants with pending Measure 37 claims to determine if they had rights under Measure 49. Section 10(2) of the Act provides that if a City has not made a decision on a Measure 37 claim before December 2007, the City must notify the applicant within 90 days after the effective date of Measure 49 that the applicant is entitled to seek relief under Section 9. On February 27,2008, the City Administrator notified Attorney Cox of the right to apply for relief under Measure 49 within 120 days; the notice complied with the statutory notice requirements and included a claim form developed expressly for the purpose of directing the claimant to submit necessary information for the Section 9 claim. The notice also reserved the right to question the eligibility of the claimants (due to incomplete M37 applications). Attorney Cox filed a claim for "George Harshman, Virginia Wilt, Wilt Family and Tri- W Group" on May 20, 2008. The City claim form developed for this single City M49 claim was completed only by stating "see attached" in numerous places referencing the M37 claim materials attached. No qualifying appraisal complYing with Section 9, subsection 6 of the Act was submitted with the claim. The Attorney's cover letter indicates "claimants have been unable to retain a certified appraiser..." As discussed more fully below, failure to follow the guidance of the claim form to submit the required information has resulted in fatal errors in the application. Specifically, Section 10 (3) of the Act provides that failure to file the notice and required information with the public entity within 120 days after the date the public entity mails the notice, essentially disqualifies the claim and the claimant is not entitled to relief under Section 9 of Measure 49. Pursuant to Section 10(4) of the Act the City had until September 20,2008 to make a tentative decision. Council approved a tentative decision on September 2,2008. Claimants and DLCD were provided notice of the tentative decision denYing the claim and failed to respond to the tentative decision within 15 calendar days. As of the date of this decision, no additional written evidence or arguments have been submitted in response to the tentative decision. The City must make a final determination on or before November 20, 2008. The matter is scheduled for November 18,2008. A final decision on a Measure 49 claim is reviewable by Writ of Review, ORS 34.010 to 34.100. Section 16 (3) of the Act limitsjudicial review ofa final M49 determination to the evidence in the record at the time of the final determination. In addition, review is available only for issues that are raised before the public entity with sufficient specificity to afford the public entity an opportunity to respond. Based upon the evidence in the Record, said Record being specifically incorporated herein by this reference, the Council makes the following findings of fact and conclusions of law: II. FINDINGS OF FACT 1) The Nature of Proceedings findings set forth above are true and correct and are incorporated herein by this reference. 2) The applicant [claimant] is listed on the application as George Harshman, Virginia Wilt, FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -2- IIT-- Wilt Family, and Tri-W Group LP. Claimants are represented by Attorney William C. Cox 0244 S.W. California Street, Portland, Oregon 97219 [phone (503) 246-5499]. 3) The subject of this Measure 49 claim is real property located within the City of Ashland ("City"), and described in Jackson County Tax Assessor's maps as Tax Map/Lot T39SRIE, Section 8DB, Lot 200, consisting of approximately 27.25 acres of land. (hereinafter "Property"). 4) The same claimants apparently own or owned adjacent property Tax Map/Lot T39SRIE, Section 8DB, Lot 600, outside the City of Ashland. This adjacent parcel was the subject of a May 3, 2007 Jackson County Order # 280-07, regarding a Measure 37 claim. · 5) The property is vacant and is accessed off the end of Hitt Road, which at this point is an undeveloped right-of-way. 6) The property is entirely located within the City limits of the City of Ashland and is within the City of Ashland Urban Growth Boundary. 7) The property has an Ashland Comprehensive Plan Map designation of Woodland Residential. The property is also zoned WR - Woodland Residential. 8) Woodland Residential Zoning (W-R), adopted in 1982, provides for the following: 18.14 W -R Woodland Residential District 18.14.010 Purpose The purpose of the W-R district is to stabilize and protect the steep and forested areas within the City. Application of the zone will ensure that the forest, environmental erosion control and scenic values ofthese areas are protected from incompatible development which could result in a degradation of their values. 18.14.020 Permitted uses The following uses and their accessory uses are permitted outright: A. Single family dwellings. B. Agriculture and farm uses, except animal sales yards and feed yards, hog farms and any animal fed garbage. C. Parks and recreation facilities. D. Home occupations. 18.14.030 Conditional Uses The following uses and their accessory uses are permitted when authorized in accordance with Chapter 18.104, Conditional Use Permits: A. Churches and similar religious institutions. B. Public and public utility buildings, structures and uses, but not including corporation, storage or repair yards, warehouses and similar uses. C. Private recreational uses and facilities, provided that the forested character of the area is not disturbed. D. Public and quasi-public halls, lodges and clubs. E. Schools, both public and private. F. Daycare centers. G. Homes for the elderly and nursing homes. FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -3- IIT- H. Disc antenna for commercial use. I. Nonconforming use or structure changes required by Section 18.68.090. 1. Temporary uses. K. Wireless Communication Facilities when attached to existing structures and authorized pursuant to Section 18.72.180. 18.14.040 General Regulations A. Minimum lot area. The minimum lot area in the W-R zone is determined by the chart below: Slope Less than 40% 40 to 50% 50 to 60% Over 60% Outside UGB Min. Lot Size 2.0 2.5 5.0 10.0 20.0 DU/Acre .5 .4 .2 .1 .05 B. Maximum lot coverage. The maximum lot coverage shall be seven (7%) percent. C. Minimum lot width. All lots shall be at least one hundred (100) feet in width. D. Minimum lot depth. All lots shall be at least one hundred-fifty (150) feet in depth. E. Standard yard requirements. 1. Minimum front yard - There shall be a front yard of at least twenty (20) feet. 2. Minimum side yard - There shall be a minimum side yard of six (6) feet, except ten (10) feet along a side yard facing the street on a comer lot. 3. Minimum rear yard - There shall be a minimum rear yard of ten (10) feet plus ten (10) feet for each story in excess of one (1) story. 4. In addition, the setbacks must comply with Section 18.70 of this Title which provides for solar access. F. Maximum building height. No structure shall be over thirty-five (35) feet or two and one-half (2 1/2) stories in height, whichever is less. G. Aggregate removal prohibited. There shall be no mining of granite for aggregate, quarry rock or other open pit mining in this zone. H. Limits on density transfer. All developments, with the exception of partitioning, must be developed under the Performance Standards, Chapter 18.88. No more than twenty-five (25%) percent of the density allowed in a Woodland Residential zone may be transferred to a higher density zone in a Performance Standard development. 9) The vast majority of the property contains slopes over 35%, these areas are denominated as "severe constraints" on the maps in the Record (see Attachments B & C). Only a small portion of the total site contains 0%-150/0 slopes and 160/0 -250/0 slopes. 10) The Physical and Environmental Constraints Chapter, AMC 18.62 (adopted May 19, 1987, and replaced with Ordinance 2528 on July 7, 1989) established regulations by land classification. Hillside Lands, identified on the Physical Constraints Overlay map are those areas which have a slope of 25 percent or greater, are subject to additional public safety regulations. Such lands are identified as subject to damage from erosion and slope failure. The AMC 18.62.080 Hillside regulations are attached hereto and incorporated herein as Attachment A. III. FINDINGS APPLYING APPLICABLE CRITERIA 11) The Council finds and determines that the relevant approval criteria are found in or referenced in Section 9 and 10 of Measure 49. Also implicated in this decision are ALUO FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -4- lIT criteria for W - R Zoning and Physical and Environmental Constraints Permit Requirements, specifically Hillside Lands. 12) The Council finds that it has received all information necessary to make a final decision. 13) The Council finds and determines that this proposal to develop 10 unit single-family residential subdivision pursuant to Section 9 and 10 of Measure 49, does not meet all applicable criteria for approval of a Measure 49 claim. This finding is supported by the detailed findings set forth herein as well as by competent substantial evidence in the whole Record. 14) Criterion: [Section 9(1)] (1) A claimant thatfiled a claim under ORS 197.352 on or before the date of adjournment sine die of the 2007 regular session of the Seventy-Fourth Legislative Assembly for property located, in whole or in part, within an urban growth boundary may establish one to 10 single-family dwellings on the portion of the property located within the urban growth boundary. Adjournment sine die of the 2007 Oregon legislature occurred on June 28, 2007. A Measure 37 claim was filed with the Community Development Department on November 29,2008 for George and Patsy Harshman. (The claim should have been directed to the City Administrator per City Ordinance). The application was deemed incomplete on February 16, 2007 when City Administrator Martha Bennett mailed a letter to Attorney Cox, notifying him, among other things, of a failure to include all owners, (noting the omission of an application from Tri- W Group owner of 50% of the parcel). Mr. Cox responded by submitting evidence that the City Planning Department signed for receipt of the Tri-W Group application on November 29,2006. The City received a copy of the Tri-W claim on March 12,2007 with additional information on the Harshman claim. This claim application was also deemed incomplete by the City Administrator on July 5,2007. The City of Ashland Measure 37 claims procedure ordinance, then in effect, provided as follows: B. Demands for just compensation shall be submitted to the City Administrator. No demand for just compensation shall be deemed submitted until all materials required by this section have been provided to the City Administrator by the current owner. A notice of submission shall be sent to the current owner at the time the City Administrator determines the current owner's demand for just compensation has been deemed submitted. c. Notwithstanding a claimant's failure to provide all of the information and/or the application processing fee required by subsection (A) of this section, the city may review and act on a claim. The claimant wrote N/ A next to "deemed complete" on the M49 application. The code language above indicates that a claim is not deemed submitted until all materials are provided. The City Administrator requested in her February 16, 2007 letter to Attorney Cox if the applicant intended to supplement the submittal or whether the applicant intended to have the submittal deemed FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -5- ~ -----------TrT- complete (i.e. no intention to supplement). In the subsequent March submittal by Attorney Cox, the Attorney submitted missing material (including the Tri-W materials) and it is apparent that the Attorney contemplated the claim would be processed, as is, unless the City would notify the attorney if additional materials were required. The Administrator did not make a determination on the resubmission until after the adjournment of the legislative session. Council finds and determines that a claim by both Harshman and Tri-W was filed with the City prior to 2007 adjournment, despite the fact that the applications were not deemed submitted under the City ordinance because they were found to be incomplete. Under Measure 37, the applicant arguably had the right to proceed with the claim in Court despite the local determination of whether the materials submitted were sufficient to process the claim. The actual timing of the second application (Tri-W Group) is also important. Section 10(5) of the Act states that if a Measure 37 claim is submitted after December 4, 2006, it must include a denial of a final land use decision or it is ineligible for relief under Section 9 of the Act. The Council finds and determines that the proof of mailing and receipt by the Planning Department on November 29,2006 is enough to satisfy the requirement to submit the claim prior to December 4,2006. The City has no evidence to refute the Attorney's claim and postal receipt that the materials were signed for at the Planning Department and later misplaced. Accordingly, this first threshold requirement (eligibility to file) is met. Note: The omission of Mrs. Harshman on the paperwork for the M49 claim is not seen as significant. 15) Criterion: [Section 9(2)] (2) The number of single-family dwellings that may be established on the portion of the property located within the urban growth boundary under this section may not exceed the lesser of: (a) The number ... described in the claim tiled with ... a city...; The original claim was for $3,750,000 to $8,902,000 based on development of: "as many lots as could be serviced by on site sewer. with community water each lot could have been 20,000 square feet." The property is 27.25 acres. Accordingly, the number of single family residential lots in the claim far exceeds 10. (b) 10, .... ; or As noted below, the claim is amended to claim ten (10) single family lots and units. (c) The number of single family dwelling that total value of which represents just compensation for the reduction in fair market value caused by the enactment of one or more land use regulations that were the basis for the claim, set forth in subsection (6) of this section. FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -6- II~T NOTE: Section 9, Subsection 6 of the Act provides: 6. The reduction in the fair market value of the property caused by the enactment of one or more land use regulations that were the basis of the claim is equal to the decrease, if any, in the fair market value of the property from the date that is one year before the enactment of the la,nd use regulation to the date that is one year after the enactment, plus interest. If the claim is based on the enactment of more than one land use regulation enacted on different dates, the reduction in the fair market value of the property caused by each regulation shall be determined separately and the values added together to calculate the total reduction in fair market value. The reduction in fair market value shall be adjusted by any ad valorem property taxes not paid as a result of any special assessment of the property under ORS 308A.050 to 308.A.128, 321.257 to 321.390, 321. 700 to 321.754 or 321.805 to 321.855, plus interest, offset by any severance taxes paid by the claimant and by any recapture of potential additional tax liability that the claimant has paid or will pay for the property if the property is disqualified from special assessment under ORS 308A. 703. Interest shall be computed under this subsection using the average interest rate for a one-year United States Government Treasury Bill on December 31 of each year of the period between the date the land use regulation was enacted and the date the claim was filed, compounded annually on January 1 of each year of the period. The City's M49 application form clearly states: "Applicant must complete the following and submit supporting documentation concerning (a) (b) and (c) below and note the lesser of (a) (b) and (c) here: " The claimant only wrote "See attached - 10 now requested" No analysis on the form and no supporting documentation or information concerning the required analysis under subsection (c) "reduction of fair market value" meeting the standards established in Section 9, subsection (6) was provided with the application. The Applicant appears to assume ten (10) single family dwelling lots and units can be applied for under Section 9; however, it is clear that the applicant must demonstrate eligibility of the lesser of: (a) the claim (b) 10 or (c) the number of units equal to the value of the reduction in fair market value as calculated by Section 9, Subsection (6) of the Act. Accordingly, as a consequence of the failure to submit an appraisal under Subsection (6), the Council further finds and determines that application is fatally flawed and disqualified from relief under Section 9 of Measure 49. As noted above, Section 10 (3) of the Act provides that failure to file the notice and required information with the public entity within 120 days after the date the public entity mails the notice, precludes relief under Section 9 of Measure 49. As a practical matter, in addition to the disqualification, this failure makes it impossible for the claimant to demonstrate that ten (10) lots/units is the appropriate number of lots/units (i.e. the lesser of) to be awarded under section 9 as the reduction in value calculation has not been and cannot be performed. FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -7- i1T- As discussed more fully below, if the reduction in value calculation had actually been performed, it is not inconceivable that the reduction in value calculation would result in a value equal to less than ten units. This is because the majority of the land development regulations the claimant identifies (e.g. W -R Zoning) are likely "exempt" land development regulations as they are essentially "restricting or prohibiting activities for the protection of public health and safety" including specifically "landslides" "pollution control regulations" as well as nuisance regulation - e.g. erosion control). For purposes of this decision, the Council finds that the majority of regulations referenced are in fact exempt regulations. (3) if the number of single-family dwellings described in ... a claim filed with... a city ... is more than 10, the claimant may amend the claim to reduce the number to no more than 10 by filing a notice of the amendment with the information required by Section 10 of this Act. The May 20, 2008 filing indicates: "Claimants elect to amend their Measure 37 claims. Claimants seek relief pursuant to Measure 49, Section 9 and 10. Claimants seek the right to permit, without limitation, the creation, division, development, and/or subsequent sale of 10 (two acre) legal lots with a single family dwelling on each lot." (4) If multiple claims were filed for the same property, the number of single family dwellings that may be established for purposes of subsection (2)(a) of this section is The number in the most recent claim filed with... a city... but not more than lOin any case. The multiple claims (by different ownership interests) have now been consolidated into one joint application requesting ten (10) residential lots and units. 16) Criterion: [Section 9(5)] (5) To qualify for relief provided by this section, the claimant must have filed a claim for the property with the city or county in which the property is located. In addition, regardless of whether a waiver was issued by Metro, a city or a county before the effective date of this 2007 Act, to qualify for relief under this section, the claimant must establish that: (a) The claimant is an owner of the property; Claimants George Harshman and Tri-W Group L.P are the legal owners of the property as tenants in common. (b) All owners of the property have consented in writing to the claim; FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -8- Ir~-- ~- The Record reflects Attorney William Cox is authorized to file the application on behalf of all owners. (c) The property is located, in whole or in part, within aD urban growth boundary; The property is located entirely within the City of Ashland Urban Growth Boundary. (d) On claimant's acquisition date, the claimant lawfully was permitted to establish at least the number of dwellings on the property that are authorized under this section; The current owners have different acquisition dates, although as members of different legal entities their involvement in the property can be traced to 1965. George Harshman formally acquired a 50% undivided interest in the property by deed in 1979. Tri-W Group L.P. formally acquired an undivided interest in the property in 1998. While the claimant George Harshman argues for a 1965 acquisition date based on "confirmation" of an undivided 50% interest in the property in 1970 from then owner Continental Construction Company Inc., this is not supported by deed records. Similarly, although Virginia Wilt may have been involved in a corporation acquiring ownership in 1965, the property was owned by a corporate entity, and was subsequently conveyed, several times. For purposes of this joint M 49 application the earliest formal date of acquisition by a current owner, (May 3, 1979 acquisition date of George Harshman) is used. The City Council expressly rejects the implication by the claimants that it must find a 1965 acquisition date because Jackson County, in an M 37 Order now voided by Measure 49, concerning an adjacent parcel owned by the same claimants was found by the County to have a 1965 acquisition date. (e) The property is zoned for residential use; The property is zoned W - R, a residential zone. Single family residential use is a permitted use in the zone, subject to lot size requirements. (1) One or more land use regulations prohibit establishing the single-family dwellings; Under this criterion, the application only notes, "see M37 claim file." The City's M49 claim form notes the revised definition of land development regulations, as follows: (14) "Land use regulation" means: (a) A statute that establishes a minimum lot or parcel size; (b) A provision in ORS 227.030 to 227.300,227.350,227.400, 227.450 or 227.500 or in ORS chapter 215 that restricts the residential use of private real property; (c) A provision of a city comprehensive plan, zoning FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -9- IIT- ordinance or land division ordinance that restricts the residential use of private real property zoned for residential use; (d) A provision of a county comprehensive plan, zoning ordinance or land division ordinance that restricts the residential use of private real property; (e) A provision of the Oregon Forest Practices Act or an administrative rule of the State Board of Forestry that regulates a forest practice and that implements the Oregon Forest Practices Act; (f) ORS 561.191, a provision ofORS 568.900 to 568.933 or an administrative rule of the State Department of Agriculture that implements ORS 561.191 or 568.900 to 568.933; (g) An administrative rule or goal of the Land Conservation and Development Commission; or (h) A provision of a Metro functional plan that restricts the residential use of private real property. (22) "Zoned for residential use" means zoning that has as its primary purpose single-family residential use The text of Section 9, Measure 49, calls for identification of "land use regulations" which "prohibit" establishment of residential dwellings; this prohibition (if pursuant to a non- exempt regulation) and the associated reduction in value per Section (9)(2)(c) and subsection( 6) is "compensated" with an award of single family residential lots and units in an amount which is the lesser of ( a) the number set forth in the M37 claim (b) 10 or (c) the number of units represented by the reduction in value due to non-exempt regulations prohibiting the residential use. By contrast, the text of Measure 37 more generally concerned land use regulations that restrict uses permitted on the real property; and the restriction imposed by the land use regulation has the effect of causing a reduction in the fair market value of the real property. The standard is different and thus claimant's reference to "see M37 claim file" is inadequate. The November 2006 M37 claim itself was extremely generic in regard to identification of regulations. While the "Woodland Residential District" was specifically mentioned, otherwise the claim simply referenced the Ashland Community Development Code as well as "each and every" land development regulation which restricts the use of the claimants property. The W-R Zoning District does not prohibit residential uses; the District only restricts residential uses based on an increasing minimum parcel size that corresponds with increases in property slope. For example, the W-R Zone's general regulations provide: A. Minimum lot area. The minimum lot area in the W-R zone is determined by the chart below: Slope Less than 40% 40 to 50% 50 to 60% Over 60% Outside UGH Min. Lot Size 2.0 2.5 5.0 10.0 20.0 DU/Acre .5 .4 .2 .1 .05 The subject property would have a minimum lot size of2.0 t010.0 acres depending upon the exact determination of slope on the subject 27.25 acres. While the applicant has not prepared an application, the City staff estimates up to eight (8) units might be permitted FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -10- ----rr-T~- based on zoning alone. Unlike the W-R District, the Physical and Environmental Constraints Chapter, specifically the overlay for Hillside Lands, land classification does prohibit residential uses on severe slopes, with an exemption allowing one residential unit on a lot of record. This overlay is however, clearly within the exempt regulation definition of 197.352(3) (now renumbered). (g) The establishment of the single -family dwellings is not permitted by a land use regulation described in ORS 197.352(3) [i.e. an exempt regulation]; Under this criterion, the application also notes, "see M37 claim file." The application makes no attempt to address the clarified definition of exempt regulations under Measure 49, as opposed to Measure 37. The City's M49 claim form notes the clarification of exempt regulations: (3) Subsection (1) of this section shall not apply to land use regulations that were ena~ed prior to the claimant's acquisition date or to land use regulations: (a) Restricting or prohibiting activities commonly and historically recognized as public nuisances under common law; (b) Restricting or prohibiting activities for the protection of public health and safety; [( 18) "Protection of public health and safety" means a law, rule, ordinance, order, policy, permit or other governmental authorization that restricts a use of property in order to reduce the risk or consequence of fire, earthquake, landslide, flood, storm, pollution, disease, crime or other natural or human disaster or threat to persons or property including, but not limited to, building and fire codes, health and sanitation regulations, solid or hazardous waste regulations and pollution control regulations.] (c) To the extent the land use regulation is required to comply with federal law; or [ (6) "Federal law" means: (a) A statute, regulation, order, decree or policy enacted by a federal entity or by a state entity acting under authority delegated by the federal government; (b) A requirement contained in a plan or rule enacted by a compact entity; or (c) A requirement contained in a permit issued by a federal or state agency pursuant to a federal statute or regulation.] (d) Restricting or prohibiting the use of a property for the purpose of selling pornography or performing nude dancing. The regulations identified above are clearly exempt land development regulations. The W -R Zone is established as a public safety regulation, specifically the district recognizes landslides and erosion control are primary purposes of the regulation (to a FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page-ll- II--Y -- lesser degree aesthetics is also implicated). The W-R Zone's purposes statement states: The purpose of the W-R district is to stabilize and protect the steep and forested areas within the City. Application of the zone will ensure that the forest, environmental erosion control and scenic values of these areas are protected from incompatible development which could result in a degradation of their values. Similarly, the regulations contained in the Physical and Environmental Constraints Chapter Overlay, specifically regulations for Hillside Lands (set forth in Attachment A) are clearly exempt regulations. Damage to adjacent properties by uncontrolled runoff and erosion concerns a commonly and historically recognized public nuisance. Similarly, the overlay's regulations to control erosion of property and to minimize risks or minimize consequences of landslides and wildfires are clearly contemplated within Measure 49' s definition of exempt regulations. Accordingly, reduction in value calculations - had they been performed, cannot include reduction based on these exempt regulations. (h) The land use regulation described in paragraph (f) of this subsection was enacted after the date the property, or any portion of the property, was brought into the urban growth boundary; The property has been part of the City and the urban growth boundary since the UGB was established. Accordingly, the regulations were enacted after inclusion in the UGB. (i) [applicable only to Metro] (j) If the property is within a City, the land use regulation that is the basis for the claim was enacted after the date the property was annexed to the city; and The property has been part of the City limits for several decades. Accordingly, the regulations were enacted after inclusion in the City limits. (k) The enactment of one or more land use regulations, other than land use re!!ulations described in ORS 197.352(3), that are the basis for the claim caused a reduction in the fair market value of the property, as determined under subsection (6) of this section, that is equal to or greater than the fair market value of the single family dwellings that may be established on the property under subsection (2) of this section. (emphasis added) See findings located elsewhere in this document concerning claimant's failure to submit a qualifying appraisal, and the exempt status of the identified regulations, said findings being incorporated herein by this reference. FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -12- -,,--,-- -- (6) The reduction in the fair market value of the property caused by the enactment of one or more land use regulations that were the basis of the claim is equal to the decrease, if any, in the fair market value of the property from the date that is one year before the enactment of the land use regulation to the date that is one year after the enactment, plus interest. If the claim is based on the enactment of more than one land use regulation enacted on different dates, the reduction in the fair market value of the property caused by each regulation shall be determined separately and the values added together to calculate the total reduction in fair market value. The reduction in fair market value shall be adjusted by any ad valorem property taxes not paid as a result of any special assessment of the property under ORS 308A.050 to 308.A.128, 321.257 to 321.390, 321.700 to 321.754 or 321.805 to 321.855, plus interest, offsetby any severance taxes paid by the claimant and by any recapture of potential additional tax liability that the claimant has paid or will pay for the property if the property is disqualified from special assessment under ORS 308A.703. Interest shall be computed under this subsection using the average interest rate for a one-year United States Government Treasury Bill on December 31 of each year of the period between the date th.e land use regulation was enacted and the date the claim was filed, compounded annually on January 1 of each year of the period. (7) For purposes of subsection (6) of this section, a claimant must provide an appraisal showing the fair market value of the property one year before the enactment of the land use regulation that was the basis for the claim and the fair market value of the property one year after the enactment. The appraisal also must show the fair market value of each single-family dwelling to which the claimant is entitled under subsection (2) of this section, along with evidence of any ad valorem property taxes not paid, any severance taxes paid and any recapture of additional tax liability that the owner has paid or will pay for the property if the property is disqualified from special assessment under ORS 308A.703. The actual and reasonable cost of preparing the claim, including the cost of the appraisal, not to exceed $5000, may be added to the calculation of the reduction in fair market valuwe under Section 7 (6) of this 2007 Act. The appraisal must: (a) Be prepared by a person certified under ORS chapter 674 or a person registered under ORS chapter 308; (b) Comply with the Uniform Standards of Professional Appraisal Practice, as authorized by the Financial Institutions Reform, Recovery and Enforcement Act of 1989; and (c) Expressly determine the highest and best use of the property at the time the land use regulation was enacted. (8) Relief may not be granted under this section if the highest and best use of the property was not residential use at the time the land use regulation was enacted. FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -13- 1"1-' (9) When Metro, a city or county has issued a final decision authorizing one or more single family dwellings under this section on the portion of the property located within the urban growth boundary, the claimant may seek other governmental authorizations required by law for that use, and the land use regulation enacted by a public entity that has the effect of prohibiting the use does not apply to the review of the authorizations, except as provided in section 11 of this 2007 Act. If Metro is reviewing ... [N/A] (10) The only types of land use that are authorized by this section are the subdivisions or partition of land for one or more single-family dwellings, or the establishment of one or more single-family dwellings on land on which the dwellings would not otherwise be allowed. As noted above, no qualifying appraisal complying with Section 9, subsection 6 - 8 of the Act was submitted with the claim. The attorney's cover letter indicates "claimants have been unable to retain a certified appraiser..." Failure to follow the guidance of the City M 49 claim form to submit the required information within the time provided by the Act has resulted in disqualification of the claim. Specifically, Section 10 (3) of the Act provides that if the claimant fails to file the notice and required information with the public entity within 120 days after the date the public entity mails the notice, the claimant is not entitled to relief under Section 9 of Measure 49. In addition, the failure to file the required information (appraisal) makes demonstration of compliance with the standards for relief, impossible. Similarly, the City determination of compliance is impossible, accordingly the standards are not met. Finally, the primary regulations controlling development of this property are exempt regulations under Measure 49. Accordingly, the claimant is not entitled to relief under Measure 49. IV. ORDER Accordingly, based on the above Findings of Fact and Conclusions of Law, and based upon the evidence in the whole Record, the City Council hereby DENIES the claim by George Harshman and Tri-W Group, et. aI., under Section 9 and 10 of Measure 49 requesting "ten (10) (two acre) legal lots with a single family dwelling on each lot" and concerning 27.25 acres of land located at Tax Map/Lot T39SRIE, Section 8DB, Lot 200. The claim is denied for the reasons set forth above, included but not limited to the fact that the claim is disqualified for failure to submit required information (specifically a qualifying appraisal) within 120 days of the City's notice and for failure to demonstrate compliance with the requirements of Section 9 of the Act, specifically failure to demonstrate a reduction in value caused by non-exempt regulations prohibiting residential use. Nothing in this order precludes the claimants pursuit of development options on the subject property [no application has ever been submitted to the City.]. Finally, the City, in recognition of physical constraints to the development of certain sensitive lands is exploring transferable development credits to provide more options for property owners. FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -14- ----rr-.---- Ashland City Council Mayor John W. Morrison Signature authorized and approved by the full Council this ISth day of November, 200S Approved as to form: Date: Ashland City Attorney FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -15- --------rr-T~----~ Attachment A. 18.62.080 Development Standards for Hillside Lands It is the purpose of the Development Standards for Hillside Lands to provide supplementary development regulations to underlying zones to ensure that development occurs in such a manner as to protect the natural and topographic character and identity of these areas, environmental resources, the aesthetic qualities and restorative value of lands, and the public health, safety, and general welfare by insuring that development does not create soil erosion, sedimentation of lower slopes, slide damage, flooding problems, and severe cutting or scarring. It is the intent of these development standards to encourage a sensitive form of development and to allow for a reasonable use that complements the natural and visual character of the city. A. General Requirements. The following general requirements shall apply in Hillside Lands: 1. All development shall occur on lands defined as having buildable area. Slopes greater than 35% shall be considered unbuildable except as allowed below. Variances may be granted to this requirement only as provided in section 18.62.080.H. a. Existing parcels without adequate buildable area less than or equal to 35% shall be considered buildable for one unit. b. Existing parcels without adequate buildable area less than or equal to 35% cannot be subdivided or partitioned. 2. All newly created lots either by subdivision or partition shall contain a building envelope with a slope of 35% or less. 3. New streets, flag drives, and driveways shall be constructed on lands of less than or equal to 35% slope with the following exceptions: a. The street is indicated on the City's Transportation Plan Map - Street Dedications. b. The portion of the street, flag drive, or driveway on land greater than 35% slope does not exceed a length of 1 00 feet. 4. Geotechnical Studies. For all applications on Hillside Lands involving subdivisions or partitions, the following additional information is required: A geotechnical study prepared by a geotechnical expert indicating that the site is stable for the proposed use and development. The study shall include the following information: a. Index map. b. Project description to include location, topography, drainage, vegetation, discussion of previous work and discussion of field exploration methods. c. Site geology, based on a surficial survey, to include site geologic maps, description of bedrock and surficial materials, including artificial fill, locations of any faults, folds, etc..., and structural data including bedding, jointing and shear zones, soil depth and soil structure. d. Discussion of any off-site geologic conditions that may pose a potential hazard to the site, or that may be affected by on-site development. e. Suitability of site for proposed development from a geologic standpoint. f Specific recommendations for cut and fill slope stability, seepage and drainage control or other design criteria to mitigate geologic hazards. g. If deemed necessary by the engineer or geologist to establish whether an area to be affected by the proposed development is stable, additional studies and supportive data shall include cross-sections showing subsurface structure, graphic logs with subsurface exploration, results of laboratory test and references. h. Signature and registration number of the engineer and/or geologist. i. Additional information or analyses as necessary to evaluate the site. j. Inspection schedule for the project as required in 18.62.080.B.9. k. Location of all irrigation canals and major irrigation pipelines. B. Hillside Grading and Erosion Control. All development on lands classified as hillside shall provide plans conforming with the following items: 1. All grading, retaining wall design, drainage, and erosion control plans for development on Hillside Lands shall be designed by a geotechnical expert. All cuts, grading or fills shall conform to the International Building Code_and be consistent with the provisions of this Title. Erosion control measures on the development site shall be required to minimize the solids in runoff from disturbed areas. FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -16- --rrI-- -- 2. For development other than single family homes on individual lots, all grading, drainage improvements, or other land disturbances shall only occur from May 1 to October 31. Excavation shall not occur during the remaining wet months of the year. Erosion control measures shall be installed and functional by October 31. Up to 30 day modifications to the October 31 date, and 45 day modification to the May 1 date may be made by the Planning Director, based upon weather conditions and in consultation with the project geotechnical expert. The modification of dates shall be the minimum necessary, based upon evidence provided by the applicant, to accomplish the necessary project goals. 3. Retention in natural state. On all projects on Hillside Lands involving partitions and subdivisions, and existing lots with an area greater than one-half acre, an area equal to 25% of the total project area, plus the percentage figure of the average slope of the total project area, shall be retained in a natural state. Lands to be retained in a natural state shall be protected from damage through the use of temporary construction fencing or the functional equivalent. For example, on a 25,000 sq. ft. lot with an average slope of29%, 25%+29%=54% of the total lot area shall be retained in a natural state. The retention in a natural state of areas greater than the minimum percentage required here is encouraged. 4. Grading - cuts. On all cut slopes on areas classified as Hillside lands, the following standards shall apply: a. Cut slope angles shall be determined in relationship to the type of materials of which they are composed. Where the soil permits, limit the total area exposed to precipitation and erosion. Steep cut slopes shall be retained with stacked rock, retaining walls, or functional equivalent to control erosion and provide slope stability when necessary. Where cut slopes are required to be laid back (J: 1 or less steep), the slope shall be protected with erosion control getting or structural equivalent installed per manufacturers specifications, and revegetated. b. Exposed cut slopes, such as those for streets, driveway accesses, or yard areas, greater than seven feet in height shall be terraced. Cut faces on a terraced section shall not exceed a maximum height of five feet. Terrace widths shall be a minimum of three feet to allow for the introduction of vegetation for erosion control. Total cut slopes shall not exceed a maximum vertical height of 1 5 feet. (See Graphic) Cut 5 10 pea n d Fill 5 lope R e q u ir em en t 5 3' Mlnl.....um T.rroc_ Width Not t 0 Sea Ie For Illustration Only FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -17- -- T1' Reduce Effective Visua Bulk by Utilizing Stepped Foundations The top of cut slopes not utilizing structural retaining walls shall be located a minimum setback of one- half the height of the cut slope from the nearest property line. Cut slopes for structure foundations encouraging the reduction of effective visual bulk, such as split pad or stepped footings shall be exempted from the height limitations of this section. (See Graphic) c. Revegetation of cut slope terraces shall include the provision of a planting plan, introduction of top soil where necessary, and the use of irrigation if necessary. The vegetation used for these areas shall be native or species similar in resource value which will survive, help reduce the visual impact of the cut slope, and assist in providing long term slope stabilization. Trees, bush-type plantings and cascading vine-type plantings may be appropriate. 5. Grading - fills. On all fill slopes on lands classified as Hillside Lands, the following standards shall apply: a. Fill slopes shall not exceed a total vertical height of 20 feet. The toe of the fill slope area not utilizing structural retaining shall be a minimum of six feet from the nearest property line. (Ord 2834 S6, 1998) b. Fill slopes shall be protected with an erosion control netting, blanket or functional equivalent. Netting or blankets shall only be used in conjunction with an organic mulch such as straw or wood fiber. The blanket must be applied so that it is in complete contact with the soil so that erosion does not occur beneath it. Erosion netting or blankets shall be securely anchored to the slope in accordance with manufacturer's recommendations. c. Utilities. Whenever possible, utilities shall not be located or installed on or in fill slopes. When determined that it necessary to install utilities on fill slopes, all plans shall be designed by a geotechnical expert. d. Revegetation of fill slopes shall utilize native vegetation or vegetation similar in resource value and which will survive and stabilize the surface. Irrigation may be provided to ensure growth if necessary. Evidence shall be required indicating long-term viability of the proposed vegetation for the purposes of erosion control on disturbed areas. 6. Revegetation requirements. Where required by this chapter, all required revegetation of cut and fill slopes shall be installed prior to the issuance of a certificate of occupancy, signature of a required survey plat, or other time as determined by the hearing authority. Vegetation shall be installed in such a manner as to be substantially established within one year of installation. 7. Maintenance, Security, and Penalties for Erosion Control Measures. a. Maintenance. All measures installed for the purposes of long-term erosion control, including but not limited to vegetative cover, rock walls, and landscaping, shall be maintained in perpetuity on all FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -18- - -~ --rr---I ~ ---- areas which have been disturbed, including public rights-ofway. The applicant shall provide evidence indicating the mechanisms in place to ensure maintenance of measures. b. Security. Except for individual lots existing prior to January 1, 1998, after an Erosion Control Plan is approved by the hearing authority and prior to construction, the applicant shall provide a performance bond or other financial guarantees in the amount of 120% of the value of the erosion control measures necessary to stabilize the site. Any financial guarantee instrument proposed other than a performance bond shall be approved by the City Attorney. The financial guarantee instrument shall be in effect for a period of at least one year, and shall be released when the Planning Director and Public Works Director determine, jointly, that the site has been stabilized. All or a portion of the security retained by the City may be withheld for a period up to five years beyond the one year maintenance period if it has been determined by the City that the site has not been sufficiently stabilized against erosion. 8. Site Grading. The grading of a site on Hillside Lands shall be reviewed considering the following factors: a. No terracing shall be allowed except for the purposes of developing a level building pad and for providing vehicular access to the pad. b. Avoid hazardous or unstable portions of the site. (Ord 2834,S2 1998) c. Avoid hazardous or unstable portions of the site. d. Building pads should be of minimum size to accommodate the structure and a reasonable amount of yard space. Pads for tennis courts, swimming pools and large lawns are discouraged. As much of the remaining lot area as possible should be kept in the natural state of the original slope. 9. Inspections and Final Report. Prior to the acceptance of a subdivision by the City, signature of the final survey plat on partitions, or issuance of a certificate of occupancy for individual structures, the project geotechnical expert shall provide a final report indicating that the approved grading, drainage, and erosion control measures were installed as per the approved plans, and that all scheduled inspections, as per 1 8. 62.080.A.4j were conducted by the project geotechnical expert periodically throughout the project. C. Surface and Groundwater Drainage. All development on Hillside Lands shall conform to the following standards: 1. All facilities for the collection of stormwater runoff shall be required to be constructed on the site and according to the following requirements: a. Stormwater facilities shall include storm drain systems associated with street construction, facilities for accommodating drainage from driveways, parking areas and other impervious surfaces, and roof drainage systems. b. Stormwater facilities, when part of the overall site improvements, shall be, to the greatest extent feasible, the first improvements constructed on the development site. c. Stormwater facilities shall be designed to divert surface water away from cut faces or sloping surfaces of a fill. d. Existing natural drainage systems shall be utilized, as much as possible, in their natural state, recognizing the erosion potential from increased storm drainage.. e. Flow-retarding devices, such as detention ponds and recharge berms, shall be used where practical to minimize increases in runoff volume and peak flow rate due to development. Each facility shall consider the needs for an emergency overflow system to safely carry any overflow water to an acceptable disposal point. f Stormwater facilities shall be designed, constructed and maintained in a manner that will avoid erosion on-site and to adjacent and downstream properties. g. Alternate stormwater systems, such as dry well systems, detention ponds, and leach fields, shall be designed by a registered engineer or geotechnical expert and approved by the City's Public Works Department or City Building Official. FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -19- -----rr-T D. Tree Conservation, Protection and Removal. All development on Hillside Lands shall conform to the following requirements: · 1. Inventory of Existing Trees. A tree survey at the same scale as the project site plan shall be prepared, which locates all trees greater than six inches d.b.h., identified by d.b.h., species, approximate extent of tree canopy. In addition, for areas proposed to be disturbed, existing tree base elevations shall be provided. Dead or diseased trees shall be identified. Groups of trees in close proximity (i. e. those within five feet of each other) may be designated as a clump of trees, with the predominant species, estimated number and average diameter indicated. All tree surveys shall have an accuracy of plus or minus two feet. The name, signature, and address of the site surveyor responsible for the accuracy of the survey shall be provided on the tree survey. Portions of the lot or project area not proposed to be disturbed by development need not be included in the inventory. 2. Evaluation of Suitability for Conservation. All trees indicated on the inventory of existing trees shall also be identified as to their suitability for conservation. When required by the hearing authority, the evaluation shall be conducted by a landscape professional. Factors included in this determination shall include: a. Tree health. Healthy trees can better withstand the rigors of development than non-vigorous trees. b. Tree Structure. Trees with severe decay or substantial defects are more likely to result in damage to people and property. c. Species. Species vary in their ability to tolerate impacts and damage to their environment. d. Potential longevity. e. Variety. A variety of native tree species and ages. f Size. Large trees provide a greater protection for erosion and shade than smaller trees. 3. Tree Conservation in Project Design. Significant trees (2' d.b.h. or greater conifers and 1'd.b.h. or greater broadleaf) shall be protected and incorporated into the project design whenever possible. a. Streets, driveways, buildings, utilities, parking areas, and other site disturbances shall be located such that the maximum number of existing trees on the site are preserved, while recognizing and following the standards for fuel reduction if the development is located in Wildfire Lands. Sit e Planning .'-'::-::~"':~" -. Responsive. t 0 j:'" ,_.",-'.'. Tree Locat Ions . ~, . Existing Sit e \ '\F';' . wit h s ignifica nt : :. . trees ):.':. .' ..: '. - - \ L_Llo.:.:.~ S ens it ive develoment opt ion for propert y . b. Building envelopes shall be located and sized to preserve the maximum number of trees on site while recognizing and following the standards for fuel reduction if the development is located in Wildfire Lands. c. Layout of the project site utility and grading plan shall avoid disturbance of tree protection areas. 4. Tree Protection. On all properties where trees are required to be preserved during the course of development, the developer shall follow the following tree protection standards: a. All trees designated for conservation shall be clearly marked on the project site. Prior to the start of any clearing, stripping, stockpiling, trenching, grading, compaction, paving or change in ground elevation, the applicant shall install fencing at the drip line of all trees to be preserved adjacent to or in the area to be altered. Temporary fencing shall be established at the perimeter of the drip lin e. Prior to grading or issuance of any permits, the fences may be inspected and their location approved by the Staff Advisor. (see 18.61.200) FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -20- ---------rr-~ b. Construction site activities, including but not limited to parking, material storage, soil compaction and concrete washout, shall be arranged so as to prevent disturbances within tree protection areas. c. No grading, stripping, compaction, or significant change in ground elevation shall be permitted within the drip line of trees designated for conservation unless indicated on the grading plans, as approved by the City, and landscape professional. If grading or construction is approved within the dripline, a landscape professional may be required to be present during grading operations, and shall have authority to require protective measures to protect the roots. d. Changes in soil hydrology and site drainage within tree protection areas shall be minimized. Excessive site run-off shall be directed to appropriate storm drain facilities and away from trees designated for conservation. e. Should encroachment into a tree protection area occur which causes irreparable damage, as determined by a landscape professional, to trees, the project plan shall be revised to compensate for the loss. Under no circumstances shall the developer be relieved of responsibility for compliance with the provisions of this chapter. 5. Tree Removal. Development shall be designed to preserve the maximum number of trees on a site. The development shall follow the standards for fuel reduction if the development is located in Wildfire Lands. When justified by findings of fact, the hearing authority may approve the removal of trees for one or more of the following conditions: (Ord 2834 S3, 1998) a. The tree is located within the building envelope. b. The tree is located within a proposed street, driveway, or parking area. c. The tree is located within a water, sewer, or other public utility easement. d. The tree is determined by a landscape professional to be dead or diseased, or it constitutes an unacceptable hazard to life or property when evaluated by the standards in 18.62.080.D.2. e. The tree is located within or adjacent to areas of cuts or fills that are deemed threatening to the life of the tree, as determined by a landscape professional. 6. Tree Replacement. Trees approved for removal, with the exception of trees removed because they were determined to be diseased, dead, or a hazard, shall be replaced in compliance with the following standards: a. Replacement trees shall be indicated on a tree replanting plan. The replanting plan shall include all locations for replacement trees, and shall also indicate tree planting details. (Ord 2834 S4, 1998) b. Replacement trees shall be planted such that the trees will in time result in canopy equal to or greater than the tree canopy present prior to development of the property. The canopy shall be designed to mitigate of the impact of paved and developed areas, reduce surface erosion and increase slope stability.. Replacement tree locations shall consider impact on the wildfire prevention and control plan. The hearing authority shall have the discretion to adjust the proposed replacement tree canopy based upon site-specific evidence and testimony. Tree Plant ing Guideline 3 ~ muk:h kept 6 W from t tunk St.k. only if t t.. is unable tostandonits own. and .t eke .s low .s possible wit h . non-m.t .Iie 5t aka. Cultivated p.ntingar.. should be 3-5 t im.. t he size of t h. root beH, and only native lOti should ba used for ftl Mound sliihtly to conhin water s. top of root b1111 at ground level Fr.. burlap from trunk, and keep below gr ad. Set I r. on sound ground FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -21- liT -- - c. Maintenance of replacement trees shall be the responsibility of the property owner. Required replacement trees shall be continuously maintained in a healthy manner. Trees that die within the first five years after initial planting must be replaced in kind, after which a new five year replacement period shall begin. Replanting must occur within 30 days of notification unless otherwise noted. (Ord 2834 S5, 1998) 7. Enforcement. a. All tree removal shall be done in accord with the approved tree removal and replacement plan. No trees designated for conservation shall be removed without prior approval of the City of Ashland. b. Should the developer or developer's agent remove or destroy any tree that has been designated for conservation, the developer may be fined up to three times the current appraised value of the replacement trees and cost of replacement or up to three times the current market value, as established by a professional arborist, whichever is greater. c. Should the developer or developer's agent damage any tree that has been designated for protection and conservation, the developer shall be penalized $50.00 per scar. If necessary, a professional arborist's report, prepared at the developer's expense, may be required to determine the extent of the damage. Should the damage result in loss of appraised value greater than determined above, the higher of the two values shall be used. E. Building Location and Design Standards. All buildings and buildable areas proposed for Hillside Lands shall be designed and constructed in compliance with the following standards: 1" Building Envelopes. All newly created lots, either by subdivision or partition, shall contain building envelopes conforming to the following standards: a. The building envelope shall contain a buildable area with a slope of 35% or less. I0 t.."l" LfNa~ -_.._~ _. 'u~~:J::()-lt! IZ-s....lIZ.. l!'>c.>....l:'.......,.l-~ · Y'-"Il'-D' ~ Alt........ t- ~~Ull!-~P c.....sT~iJo<.) I r ----l 1i, ,("AIC-D _s--_ t." ,. <~_" ~~J &U~C>ING. _ ~.~. ,,;.,~, ~V~~g I r 6' -_.~.JJ~~=.'/; F'-f(s:>r-J ",- ! "'" ,~ y",.~ Y"'CD L.rN.~ I i C~6T"~AG""-) . ~tl"~o<. I..J....~) tl.~UI~e:r.::> I I _ . I FIZONT ""'^~.r-o -_.~-_L!.-:'_~-~-t-.~u - . ~T 12-8 tE"T ~.C>.\IV. ----._---------~- ------ b. Building envelopes and lot design shall address the retention of a percentage of the lot in a natural state as required in 18. 62. 080.B.3. c. Building envelopes shall be designed and located to maximize tree conservation as required in 18. 62.080.D.3. while recognizing and following the standards for fuel reduction if the development is located in Wildfire Lands d. It is recommended that building envelope locations should be located to avoid ridgeline exposures, and designed such that the roofline of a building within the envelope does not project above the ridgeline. R:t at im d tillside ducd 8" ad net Lra s1q:e~ a\ddrg rictJjire locat ia1s FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -22- IIT- - - 2. Building Design. To reduce hillside disturbance through the use of slope responsive design techniques, buildings on Hillside Lands, excepting those lands within the designated Historic District, shall incorporate the following into the building design and indicate features on required building permits: a. Hillside Building Height. The height of all structures shall be measured vertically from the natural grade to the uppermost point of the roof edge or peak, wall, parapet, mansard, or other feature perpendicular to that grade. Maximum Hillside Building Height shall be 35 feet. (graphics available on original ordinance) b. Cut buildings into hillsides to reduce effective visual bulk. (1). Split pad or stepped footings shall be incorporated into building design to allow the structure to more closely follow the slope. (2). Reduce building mass by utilizing below grade rooms cut into the natural slope. c. A building stepback shall be required on all downhill building walls greater than 20 feet in height, as measured above natural grade. Stepbacks shall be a minimum of six feet. No vertical walls on the downhill elevations of new buildings shall exceed a maximum height of 20 feet above natural grade. (see graphic) d. Continuous horizontal building planes shall not exceed a maximum length of 36 feet. Planes longer than 36feet shall include a minimum offset of six feet. (graphic available on original ordinance) e. It is recommended that roof forms and roof lines for new structures be broken into a series of smaller building components to reflect the irregular forms of the surrounding hillside. Long, linear unbroken roof lines are discouraged. Large gable ends on downhill elevations should be avoided, however smaller gables may be permitted. (graphic available on original ordinance) f It is recommended that roofs of lower floor levels be used to provide deck or outdoor space for upper floor levels. The use of overhanging decks with vertical supports in excess of 12 feet on downhill elevations should be avoided. g. It is recommended that color selection for new structures be coordinated with the predominant colors of the surrounding landscape to minimize contrast between the structure and the natural environment F. All structures on Hillside Lands shall have foundations which have been designed by an engineer or architect with demonstrable geotechnical design experience. A designer, as defined, shall not complete working drawings without havingfoundations designed by an engineer. G. All newly created lots or lots modified by a lot line adjustment must include a building envelope on all lots that contains a buildable area less than 35% slope of sufficient size to accommodate the uses permitted in the underlying zone, unless the division or lot line adjustment is for open space or conservation purposes. H. Administrative Variance From Development Standards for Hillside Lands - 18.62.080. A variance under this section is not subject to the variance requirements of section 18.100 and may be granted with respect to the development standards for Hillside Lands if all of the following circumstances are found to exist: 1. There is demonstrable difficulty in meeting the specific requirements of this chapter due to a unique or unusual aspect of the site or proposed use of the site; 2. The variance will result in equal or greater protection of the resources protected under this chapter; 3. The variance is the minimum necessary to alleviate the difficulty; and 4. The variance is consistent with the stated Purpose and Intent of the Physical and Environmental Constraints Chapter and section 18.62.080. Appeals of decisions involving administrative variances shall be processed as outlined in 18.108.070. FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -23- T1T-- Attachment B. (Slope Map) FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -24- II I - Attachment C. (Topographic map) FINAL M49 DECISION: FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER Page -25- IIT-~--- i" II u .. II I!' CITY OF ASHLAND Council Communication Meeting Date: Department: Second~ Dept.: Approval: Public Hearing to Consider the Formation of a Local Improvement District to Improve Beach Street November 18,2008 Primary Staff Contact: James Olson, 552-2412 Public Works/Engineering E-Mail: olsoni@>ashland.or.us Comm Dev/Cit ecorder Secondary Contact: Michael R. Faught Martha Benn Estimated Time: 10 Minutes Question: Shall Council suspend the public hearing to consider the formation of a local improvement district (LID) to improve Beach Street based upon a remonstrance petition representing 76.9 percent of the proposed assessment district? Staff Recommendation: Staff recommends Council suspend the public hearing and recognize the remonstrance petition as a valid indicator of the intent of over two-thirds of the property owners within the proposed assessment district. Staff further recommends that action on the proposed LID be suspended for six (6) months pursuant to the requirements of the Ashland Municipal Code. Background: Previous Council Actions September 16,2008 Council received a staff report regarding the formation of Local Improvement District No. 89 to improve upper Beach Street. Resolution No. 2008-30 was approved setting a date of November 18, 2008 for a public hearing to consider the formation of this LID. General Between the months of November 2007 and July 2008 a number of petitions were received calling for the improvement of Beach Street under the LID program. The petitions contained a total of 15 signatures representing 14 of the 26 total proposed assessment units or 53.8 percent. Under authority of AMC Section 13.20.020(B) Council adopted Resolution 2008-30 which set a date for a public hearing to further consider the formation of this LID. Notices of the Public hearing were duly sent to all property owners within the proposed assessment district. On October 29,2008 staff received a remonstrance petition bearing 12 signatures and representing 20 of 26 proposed assessment units or 76.9 percent of the total. This petition included signatures of several owners who had previously signed petitions in support of the LID thus indicating a complete reversal of their desire and intention. AMC Section 13.20.959(C) states that if the owners of two-thirds of the property to be specially assessed for the improvement, or the owners of property which will be assessed for two-thirds or more Page 1 of2 H:\ShipletD\Council\Council Communication\2008\November 17 and 18\111808 Beach St LID.CC.doc r~' --rrT-- -- CITY OF ASHLAND of the proposed assessment, deliver to the Council a remonstrance to the improvement, then action on the improvement shall be suspended for a period of six months. This petition meets the above stated requirement and Council is required to suspend any action on this proposed LID for a six (6) month period. However, unless conditions change and additional owners reverse their desire to remonstrate against the formation of an LID, this issue is essentially considered to be indefinitely suspended. Council has no option but to suspend further action on this LID and a public hearing would not be required to support this decision. Council may wish to open the public hearing to satisfy legal requirements, but may restrict the amount of testimony offered. All property owners have received a written notice of the City's receipt of the remonstrance petition and the required pending suspension of the LID. Related City Policies: AMC Chapter 13.20 Local Improvements and Special Assessments. Council Options: 1. Council may open the public hearing and receive testimony regarding the formation of the LID, but must move to suspend further action on the LID for a period of six (6) months. 2. Council may suspend the public hearing and declare that further action on the LID is suspended for six (6) months. Potential Motions: 1. Move to suspend further action on the proposed Beach Street LID for a period of six (6) months. Attachments: Vicinity and LID Boundary Maps Remonstrance Petition of October 29, 2008 Proposed Beach Street LID Assessment Summary Page 2 of2 H:\ShipletD\Council\Council Communication\2008\November 17 and 18\111808 Beach St LID.CC.doc r~' ~--- O-c IioZ~ O~~ >-..1 ~ I-:I> E-t' - .. Uti) ~ ~~ ~ CZl :t~ uZ ~-~ ~:E CQUJ 0> ~~ ~~ O~ ~ ~ z~ ~r-;'= ~m ---,,-,- CITY OF ASHLAND .- - - . 1 _ _ _I Boundary Proposed Beach Street Improvement Represented LID Boundary P t't' Attachment No. 1 to Exhibit A on e I Ion (initiating petition) 0 125 250 · Feet 100 " , 2400 2402 qpX . -1!,;.. >"~ , ~"\S~~ ": '..:- ",,},' 3700 (. N A 3701 00 4000 201 5600 4100 , --_.- - - - -- - - . . . . 5500 . . . . I 4300 I I 4600 4200 I 5400 . I . . I I . I i I 5300 . I I . 1 5201 4800 1 I . 4700 I . . I . I . I 300 4900 4901 _ ........ 1lC....... ~ ...., ...... no -MIV of _eey M .......... 1lrloc:Nnt&. ~. ~ IodIIIonI Of"""'" _ I/IcuId I>e ~ 6e1d ...."'*' Ibr .x-' ..- ioc.cion 5108 5109 5104 -~---- THE RESIDENTS OF UNPAVED BEACH STREET Ashland. OR 97520 RECE~\/ED Jim Olson Engineering Servkes Manager 51 Winbum Way Ashland, Oregon 97520 488-5347 861-6412 OCT :' ,- ~ 2008 eilV Of AcStltand October 25, 2008 Dear Jim, We the undersigned owners of property in the proposed Local Improvement District on the unpaved area of Beacb Street in AshlaDd Oregon hereby give Dotice that we are against the formation of this district for the purpose of paving upper Beach Street. NAME PRINTED NAME ADDRESS PHONE# #M4/~'flt;'Jtt H(JkrJH~,/11/lg(J{Jsi ~ff{)Zf I2<<Lf r Ct: L {~!~7/ - 15 I !3&K}DT . LLEB--! I if6 ~U-n. ~<..K ;5c-~:;u.~-\ ~ I). ~C{ e--/\.' ~ L' Y g) - (.J/ yr I ~ m4 ~g ~ ~-'~3 <""~ .-~\ .. .- \ I \ r -,." ( I \ . '( - ,/7 I ! .~+ - (j"''' k - .r, -, '-- -~ ,) '._._' '. r L- In,,-, ,....._/ I OJ I ~/! l__. '1 C./ / /.:.yjl{..~! j-f ') / I'<..J '(.~ '- / ~ ~1- '2 " 0,,1 ~ !'.' ,;;/, ~1~1JD~ff7&--es2f? c/ f3;;,~.k.!r{ ~f t.' /..i rf!m,i( IIJ/UfJJ)<;' ;~ '3 0C~~ 9 qg? 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November 18,2008 Primary Staff Contact: Planning E-Mail: None Secondary Contact: Martha Bennet Estimated Time: Linda Reid reidl@ashland.or.us Bill Molnar 30 Minutes Question: Should the City Council award up to $345,000 in CDBG funds to one or more of the respondents to the Request for Proposals in compliance with eligibility criteria of the Department of Housing and Urban Development? Staff Recommendation: The City of Ashland currently has a CDBG fund balance of$345.000. This amount represents a combination of funds which include the 2008 CDBG award, a carryover of unexpended 2007 grant funds, and reprogrammed funds from previous years projects that were not completed. The City received 3 applications requesting a combined total of approximately $736.000 in funds. Due to a limited amount ofCDBG funds staff recommends that The Housing Authority of Jackson County's (HAJC) proposal be funded in full. This recommendation is based on the applicant's priority need ranking as determined by the 2005-2009 Consolidated Plan, the level of matching funds provided by the applicant, and the amount of subsidy the CDBG funds provide to the overall project. Staff found that the HAJC proposal meets the highest priority need ranking provides a match of$33 for every dollar of CDBG funds requested, and similarly will require the least amount of subsidy to the overall project. Due to the uncertainty of certain aspects of the HAJC proposal at the time of the Housing Commissions public hearing, namely the City Council acceptance of Clay Street land swap, staff also proposed a backup recommendation to fund Ashland Supportive Housing's proposal to the least extent allowable (due to a higher than usual amount of CDBG subsidy) while still remaining feasible in an effort to make the most of the cities limited resources. This contingency award selection is still recommended by Staff to allow the City to expend the CDBG funds in a timely manner in the unlikely event the HAJC proposal does not go forward. The City of Ashland Housing Commission reviewed the grant requests at a public hearing held on October 23rd, 2008. The Housing Commission made a motion to forward a recommendation to award $345,000 in CDBG funds to the Housing Authority of Jackson County for public facilities improvements, public right of way improvements on Clay street and the project's interior streets. Public facilities improvements including; curb, gutter, sidewalk, storm drainage, sewer line, street lighting, fire hydrants and other eligible improvements. The Housing Commission also made a backup recommendation to fund Ashland Supportive Housing's proposal. Page 1 of7 111808 CDBG Award.CC.doc r.l' rr- T CITY OF ASHLAND Background: The City of Ashland provides Community Development Block Grants (CDBG) to eligible affordable housing providers and non-profit organizations for capital improvement and public service projects within the City of Ashland. The City Council is to evaluate three proposals received for use of $345,000 in CDBG funds available. Upon review of the proposals, and after taking anypublic testimony at a public hearing, the Council shall make an award to the selected applicant(s). The City of Ashland has received three applications for the balance of the 2008 Community Development Block Grant funds that are competitively available. These funds comprise a carryover of $152,801 in prior year CDBG funds that were unexpended, in addition to the competitive 2008 CDBG allocation of$204.818 (less 20% or $42,547 for administration of the CDBG program and a $10,000 grant awarded to the Fair Housing Council of Oregon which was made during the regular CDBG funding cycle), and reprogrammed funds totaling $39,857. Of the available 2008 funds a set aside of 15% has been allocated for Public Service projects. As noted previously one Public Service Project was awarded in the regular 2008 funding cycle leaving a Public Service project amount of approximately $20,000 in funds available for public service activities. Assessment Criteria CDBG funds are available to eligible recipients for projects which meet CDBG national objectives, comply with federal CDBG regulations, and are consistent with the City of Ashland 2005-2009 Consolidated Plan. In order to be eligible to receive Community Development Block Grant funding applicants must address one of three National Objective criteria. · Provide benefit to low- to moderate (LMI) persons. · Aid in the prevention or eliminations of slums or blight; and · Meet a need having a particular urgency (referred to as urgent need). Priorities within the City of Ashland's 2005-2009 Consolidated Plan are given a priority ranking by letter. The rankings of A, Band C are intended to assist in directing CDBG funds to the greatest needs. In cases where there are competing projects for limited funds, the projects(s) that are ranked the highest will be funded. * A- The City of Ashland plans to use the CDBG funds for projects that meet these needs. B- The City of Ashland may use CDBG for projects that meet these needs. C- The City of Ashland does not plan to use CDBG funds for projects meeting these needs but will consider certifications of consistency for other entities which are applying for federal assistance to meet these needs. Additionally such needs may also be addressed by the City through the allocation of Economic Development and or Social Service Grants from the City General Fund. Proposal Evaluations Page 2 of7 111808 CDBG Award.CC.doc r~' WI CITY OF ASHLAND Ashland Supportive Housing (ASH) The ASH requested $345,000 in CDBG funding to acquire a single family home to be used as a group home for persons with physical disabilities needing supportive services. Staffhas reviewed the Ashland Supportive Housing proposal to determine whether it meets the Federal CDBG regulations, and if the proposal addresses the priorities within the City of Ashland 2005-2009 Consolidated plan for use ofCDBG funds. · This project proposal qualifies under the Low-Moderate Income (LMI) benefit national objective. · Acquisition and Rehabilitation (or removal of architectural barriers) of a Single Family Unit is an eligible use ofCDBG funds · Staff finds that the Ashland Supportive Housing proposal is consistent with goal number 6.1 of the City of Ashland's 2005-2009 Consolidated Plan. Goal 6: To support housing and supportive services for people with special needs. People with special needs include the elderly, the frail elderly, persons with developmental disabilities, persons with physical disabilities, persons with severe mental illness, persons with alcohol or other drug dependencies and persons with HIV / AIDS or related illnesses. 6.1: Encourage development of transitional and supportive housing for extremely low- and low-income special needs populations (B) In evaluating the proposal it is evident that the classification of "B" as a priority indicates that though this is not the highest priority use for the CDBG funds it is an activity which could be funded provided that there are not other projects which meet a higher priority need competing for the funds available. B-The City of Ashland may use CDBG for projects that meet these needs. Staff sees that Ashland Supportive Housing's proposal is an eligible use of the CDBG funds and is consistent with the City of Ashland Strategies as outlined in the 5 year Consolidated Plan for use of CDBG funds. This activity, though not explicitly creating affordable housing for the general populace, does in fact provide much needed housing and services for special populations. Housing Authority of Jackson County (HAJC) The HAJC requested $345,000 in CDBG funding to assist with the development of roads and planning activities in support of the acquisition and development of affordable housing for low income households earning between 30% and 60% of Area Median Income. Staff has reviewed the Housing Authority of Jackson County's proposal to determine whether it meets the Federal CDBG regulations, and if the proposal addresses the priorities within the City of Ashland 2005-2009 Consolidated plan for use of CDBG funds. · This project proposal qualifies under the Low-Moderate Income (LMI) benefit national objective. · Public Facilities Improvement and Infrastructure are an eligible use of CDBG funds. · Support activities for specific projects that include predevelopment costs related to acquisition are eligible uses of CDBG funds Page 3 of7 111808 CDBG Award.CC.doc r.l' ~~-- - -Ir UT CITY OF ASHLAND · Staff finds that the Housing Authority of Jackson County's proposal is consistent with goal number 1.2 of the City of Ashland's 2005-2009 Consolidated Plan. Goal 1 : To increase the supply of affordable rental housing for extremely low-, low and moderate income families. Where possible, give funding priority to those projects that will provide benefits to residents with the lowest incomes. 1.2 to support the acquisition and construction of affordable rental housing units through a sustainable program, which retains the units as affordable in perpetuity, such as a land trust (A). In evaluating the proposal it is evident that the classification of "A" as a priority indicates that this is the highest priority use for the CDBG funds. A- The City of Ashland plans to use CDBG funds for projects that meet these needs. Staff sees that the Housing Authority of Jackson County's proposal is an eligible use of the CDBG funds and is consistent with the City of Ashland Strategies as outlined in the 5 year Consolidated Plan for use of CDBG funds. Staff did question the term of affordability indicated in the HAJC proposal in terms of whether it complies with the intent of the goal to provide housing in a program that secures it as affordable in perpetuity. Given the annexation requirement to remain affordable for 60 years, and the HAJC charge to develop and maintain affordable housing as a mission based objective, Staff believes this objective is addressed by the applicant. The development of roads, or public facilities, is considered an eligible use of funds by HUD, and in Ashland the 5 year Consolidated Plan further limited the use of CDBG funds to develop public infrastructure only in cases where it was done in direct support of affordable housing. The HAJC proposal.meets this local objective. This project leverages a substantial amount of federal, state and Housing Authority funds to develop a 11,314,000 project. Relating this to the $345,000 CDBG request ($11,314,000/$345,000 which is a 33 to 1 match) this project considerably exceeds the 10% match requirement. This project also allows the City of Ashland to meet Policy 6.1.1.4(b) of the City of Ashland Comprehensive Plan for use of CDBG funds, to Cooperate with the Housing Authority of Jackson County to provide affordable housing within the City. Lastly, this project assists the City in meeting a critical and recognized long term need for the creation of affordable and workforce housing. Pathway Enterprise, Inc. (PEl) Pathway Enterprise Inc., requested $45,618 in CDBG funding to hire staff to provide supportive living skills and promote the self-sufficiency of special populations. PEl has experience with the Ashland CDBG program in that re-roofing one of their group homes at 655 Normal Ave. was funded with $7,605 in Community Development Block Grant (CDBG) from the City in 2002. Although only $20,000 is currently available to assist public services requested, the applicant has requested $45,000. In discussions with PEl they have indicated they could accept the lesser amount and hire less Staff to correspond with the award Staff has reviewed Pathway Enterprise, Inc' s proposal to determine whether it meets the Federal CDBG regulations, and if the proposal addresses the priorities within the City of Ashland 2005-2009 Consolidated plan. Page 4 of7 111808 CDBG Award.CC.doc r~' ~----~Urr -T CITY OF ASHLAND · This project proposal qualifies under the Low-Moderate Income (LMI) benefit national objective. · Public Service positions that provide direct services to special populations to promote self- sufficiency are eligible use of CDBG funds. · Staff finds that Pathway Enterprise, Inc' s proposal is consistent with goal number 6.2 of the City of Ashland's 2005-2009 Consolidated Plan. Goal 6: To support housing and supportive services for people with special needs. People with special needs include the elderly, the frail elderly, persons with developmental disabilities, persons with physical disabilities, persons with severe mental illness, persons with alcohol or other drug dependencies and persons with HIV / AIDS or related illnesses. 6.2 Provide assistance to non-profit organizations that provide support services for extremely low and low income special needs populations (B). In evaluating the proposal it is evident that the classification of "B" as a priority indicates that though this is not the highest priority use for the CDBG funds it is an activity which is could be funded provided that there are not other projects which meet a higher priority need competing for the funds available. B- The City of Ashland may use CDBG for projects that meet these needs. Staff believes that the Pathway Enterprise, Inc's proposal is be an eligible use of the CDBG funds and is consistent with the City of Ashland Strategies as outlined in the 5 year Consolidated Plan. However a staff s determination of eligibility for funding requires further clarification on certain aspects of the CDBG application. · Does the position to be funded provide a direct benefit or is the funding directed toward the recruitment, hiring and initial training of employees? These recruitment and training activities are not eligible under the CDBG program, only direct benefit activities are eligible uses of CDBG funds. · Does the proposed position meets the City of Ashland's living wage? This can not be determined from the application. · Marketing and Outreach for the recruitment of Employees is only an eligible expense for planning and administrative funds which are not being offered competitively. · City of Ashland CDBG funds can only be used to serve people in the City of Medford if those Medford residents are a minority of the total served. 51 % of those served must reside in the City of Ashland. The application does not demonstrate how this could be ensured. · It is unclear whether Pathways intends to apply in 2009 for ongoing support of existing employees (which is not an eligible expense) or whether Pathways intends to expand their servIces. Most importantly the City issued the RFP in an effort to expend a portion of CDBG funds in order for the City of Ashland to meet its timeliness test as per HUD regulations, this activity would not serve to assist the City in meeting HUD's deadline due to the CDBG rule that funds can only be requested for completed activities, therefore they could not be expended prior to Ashland's next timeliness test. Page 5 of7 111808 CDBG Award.CC.doc r.l' ..-. CITY OF ASHLAND Related City Policies: Community Development Block Grants are federal funds awarded through the City of Ashland to eligible projects that benefit low-moderate income households. Ashland's 2005-2009 Consolidated Plan for use of CDBG Funds establishes which of the nationally recognized eligible uses are prioritized locally. Staff evaluations are based on meeting the national objectives for the CDBG program, the basic federal requirements for eligibility, and include evaluation criteria that was noted in the Request for Proposals to provide applicants with the selection criteria used in assessing the proposals strengths and weaknesses. Timely expenditure of the CDBG fund is of specific importance to the City of Ashland. Should the City fail to expend the funds in a timely manner, the Department of Housing and Urban Development can impose sanctions thereby reducing future CDBG allocations. Currently the City is carrying more than 1.5 times it's annual allocation of funds and therefore is in danger of being found untimely. The City of Ashland has chosen to reissue the RFP for CDBG funds and has prioritized projects which are ready to proceed in order to expend at least $95,000 of the City's current CDBG balance in order to meet HUD' s next timeliness test in May of 2009. Upon completion of award selections by the City Council, an amendment to the Annual CDBG Action Plan will be drafted to outline the proposed uses(s) of the 2008 CDBG funds as well as for the 2007 carryover funds. A public hearing for review and approval of the Amendment to the Annual CDBG Action Plan will be held before the Housing Commission to insure consistency with the awards designated by the City Council. The US department of Housing and Urban Development (HUD) must review the annual Action Plan submitted by the City to ensure the activities funded are consistent with federal requirements, and with the local Consolidated Plan. These funds will be available upon approval of the amendment to the 2008 Action Plan, and upon the completion of any regulatory requirements including but not limited to environmental review clearance. Council Options: Upon review of the proposals received, and after hearing and public comments, the Council shall determine whether the projects effectively address the goals outlined in the Consolidated Plan and which of the projects is the most appropriate use ofCDBG funds. The Council can select to award funds as requested or modify the award amounts. However, the application of CDBG funds to Public Service projects applications is strictly limited to no more than $20,000 (150/0 of the City's 2008 annual allocation less $10,000). The Council can award funds as requested, or deny the request, and direct Staff to develop an Annual CDBG Action Plan amendment according to that selection. Page 6 of7 111808 CDBG Award.CC.doc r~' -,,1 CITY OF ASHLAND Potential Motions: I move to: a) Award the Housing Authority of Jackson County $345,000 in CDBG funds for public facilities' improvements, public right of way improvements on Clay streets and interior streets. Public facilities improvements including; curb, gutter, sidewalk, storm drainage, sewer line, street lighting, fire hydrants and other eligible improvements. OR b) Award Ashland Supportive Housing $345,000 in CDBG funds to purchase and rehabilitate a Single Family Residence to provide supportive housing to four low-income people with special needs. Rehabilitation work to include, architectural barrier removal, ADA accessibility and ramping, and other eligible alterations and improvements necessary to serve special needs populations. Attachments: Draft Housing Commission Meeting Minutes from October 23rd 2008. Housing Authority of Jackson County CDBG Application Ashland Supportive Housing CDBG Application Pathway Enterprises CDBG Application Page 70f7 111808 CDBG Award.CC.doc r~' -- --n---- T CITY OF ASHLAND ASHLAND HOUSING COMMISSION MINUTES October 23, 2008 CALL TO ORDER Chair Bill Smith called the meeting to order at 4:34 p.m. at the Community Development and Engineering Services Building, 51 Winburn Way, Ashland, OR 97520. Commissioners Present: SOU Liaison: Alexandra Amarotico, Carol Voisin absent Nick Frost Graham Lewis, absent Council Liaison: Alice Hardesty, absent Steve Hauck Bill Smith Staff Present:: Aaron Beniamin Linda Reid, Housing Specialist Regina Ayars Carolyn Schwendener, Account Clerk Richard Billin APPROVAL OF MINUTES Voisin/Hauck m/s to approve the minutes of the September 25, 2008 Housing meeting. Voice Vote: Approved PUBLIC FORUM No one present COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM RE-ISSUED RFP Reid gave an overview of the Community Development Block Grant 2008 RFP. She explained that the City has a total of $345,000 that is available to distribute to eligible recipients for projects meeting the CDBG National objectives and that are consistent with the City of Ashland 2005-2009 Consolidated Plan. The City received three applications for these funds. · Ashland Supportive Housing · Housing Authority of Jackson County . Pathway Enterprises Two of the applicants were present to discuss and answer questions, Sue Crater with Ashland Supportive Housing and Betty McRoberts from the Housing Authority of Jackson County. Sue Crater, Executive Director of Ashland Supportive Housing and Community Outreach - This organization was formerly known as Advocates for Severely Handicapped. They have been providing homes and services for adults with developmental disabilities in Ashland since 1982. Currently they have three homes in Ashland that each house five developmentally disabled adults. They have a need to develop a fourth home that is geared toward taking care of people who have more medically intense needs. Their proposal is to purchase a home that would house four developmentally disabled adults who are considered to be medically fragile. At this time Ms. Crater said they have a home chosen and have entered into an agreement with the land owner, though it is not legally binding and no money has exchanged hands. The home is located at 850 Cambridge Street, the same neighborhood as their other three homes. Ms. Crater said they would like to use the bulk of the CDBG funds, $300,000 for the purchase of the home and use the remainder $45,000 to do the interior remodel. Another $40,000 is needed which would be supplied with a combination of State DO 57 Start up Funds, On the Move in Oregon and the Oregon Comp 300 program. ASHC is prepared to fill in the funding gaps that are left. Questions from Commissioners Are your three existing homes in Quiet Village disbursed throughout the neighborhood? · The homes are located on different streets, Almeda, Michelle Ave. and Nevada Street. They have been in that neighborhood for three years. At one time they had a large ten bed group home located on Walker Street across from the Presbyterian Church as well as a large two story Victorian home on B Street. ASHe ASHLAND HOUSING COMMISSION MINUTES October 235, 2008 1 ----------11-1 determined that the ten bed home was just too many people in one home. The long term goal of the organization was to split that home into two five bedroom homes. They achieved that about three years ago by moving into the two homes in the Quiet Village neighborhood. The Home on B Street had folks that were aging and it was no longer appropriate to have those folks in a two story home and with the help of the community and the sell of the property they made a transition to a single level home in Quiet Village. How many adults will ultimately reside in the house? · Four. After the remodel the house will be approximately 1800 square feet with four bedrooms. One bedroom for each person. The lot is .24 of an acre. Have you ever applied for CDBG funds before and if you were not to receive the CDBG funds do you have other options available? . No. How is your staffing going to be accomplished? · The people that they hope to serve in this home are cared for by the State of Oregon. The State of Oregon pays AHSC for the care of the people within the home. They expect that amount to be about $10,000 per month per person. They do not expect on going operation costs to be an issue. They are looking at providing twelve living wage jobs. Given the current concerns in the financial markets is there any concern about the long term investments? · It is a concern but would not prevent the project from happening. Their investments are their safety nets that they draw income off of. They have decreased but with serving this population and what they hope to take in from the state of Oregon it will actually put more operating monies into their budget. What happens if your organization decides to sell the property in five year? · The State would take over the operations. Goldman explained that if the funds were granted through the CDBG program its Federal funds and the City would obligate that they be used through the sub recipient agreement or an intended use for a set period of time, a minimum period of seven years. The ICCA Building located at 144 North Second was sold at the end of the seven years and they retained all of the funds themselves. The City could impose a longer period of use if they chose to do so. Betty McRoberts, Project Developer for the Housing Authority of Jackson County - This development is located at 380 Clay Street and has been named Snowberry Brook which refers to a wetland plan. The Housing Authority of Jackson County has been in existence since .1969 and as of yet has never been able to develop a project in Ashland. The HAJC is proposing a sixty unit affordable housing project on 3.75 acres of the initial 10 acre site. They are requesting the entire $345,000. $285,700 is for infrastructure improvements to Clay Street and the two new public streets that will be created inside of the ten acre parcel. $59,300 will be used for Planning and Zoning expenses to get though the site review and partition. The first portion of the project is the infrastructure improvements of Clay Street. This cost is estimated at $124,915 and will be completed in June of 2009. This timeframe is necessary because the City has a portion of the CDBG funds that need to be spent quickly. The second portion is for the two new public streets. That cost is $160,785 which is scheduled to be done the same time as when the main construction is being done. An additional amount of $59,300 will be used for fees including architectural, engineering and wetland consultants. Ms. McRoberts said that because the total cost for this project is eleven million dollars the CDBG funds are absolutely necessary. The Housing Authority does have a commitment from an equity investor, Key Bank. The property will only carry a permanent loan of 2.7 million dollars. The Housing Authority will be putting in equity of their own because they have been given permission to sell four public housings units in the City of Ashland. The HAJC's target population is serving Workforce Housing, families at thirty to sixty percent of Area Median Income (AMI). This is a target population for the State of Oregon right now making the City of Ashland a number one priority. The term of affordability is sixty years though the Housing Authorities mission is to have their housing affordable forever. Ms. McRoberts reminded the Commissioners there are many employers in Ashland who have employees that cannot afford to live here. She is working on getting the data put together to be able to identify how many employees actually live outside the City. These rents are very affordable and Ms. McRoberts is quite confident there are many employees and citizens who would qualify to live in them. ASHLAND HOUSING COMMISSION 2 MINUTES October 235, 2008 lIT Questions from Commissioners Do you have staff to manage these units? . Yes, the Housing Authority has over fifty employees. They manage all of their own units. Why just 60 years and not 100? · Not totally sure but it might have to do with financing. At the end of twenty years they are required to refinance. The affordability issue hasn't been a problem at that time, units still look nice and well kept. At sixty years the project is going to need some major work. A bank might look at it and say if this project has a restriction of affordability we're going to have a problem giving you a loan. Your loan would be restricted by your rents. The HAJC has no intention of taking it out of the affordability. After dedicating these streets to the City will the construction then begin? · That's important because in order to use CDBG funds on a street it needs to be a public street otherwise it will taint the entire housing project for Davis Bacon. They can't afford to use Davis Bacon on the Housing project. Because these are public streets they will be maintained by the City. The traffic on Clay is destined to be a problem. Do you anticipate any traffic problems? · No. The traffic study that was done for Willowbrook was done for 107 Units. They will probably be required to do a new traffic study. What is going on with the water? . It might be necessary to loop the waterline. It can be very expensive. At this time they do not know what the City will require. That money is not included in the cost since they don't know what it will be yet. There will be enough in contingency in the budget to cover it. Are you serious about utilizing solar? . If they can afford it they will since it benefits their tenants. Pathway Enterprises presented an application to provide for staffing in order to provide skill services training to clients of theirs who will be moving out of dependant housing and moving into self sufficiency. Goldman acknowledged that this application is requesting $45,000 of which the social service grant award available is only $20,000. The staff noted a number of concerns. . Staff questioned whether a portion of the funds they are looking for are even eligible for CDBG. Specifically the application states that the county funds they are seeking for part of the funding is not available for planning and recruitment as identified in this project. Planning and recruitment are not available competitively through the CDGB program in Ashland. The City uses all of the planning and administrative CDBG allocations for City Planning and Administrative functions. The application would need to be limited to only for those periods where they are providing direct client services, not for training of the staff or recruitment or marketing. . It was noted in their application the amount of wages to be paid to three staff was $51,000 which does not meet Ashland's Living Wage Ordinance of $12.96 per hour, a requirement if anyone receives a grant through the City. . Indicated they would be serving five clients but as they move them out into permanent housing a number of those may be moving out of Ashland into Medford. Fifty-one percent of those served must reside in the City of Ashland. . There was a concern whether Pathways intend to apply in 2009 for ongoing support of existing employees, which is not an eligible expense, or whether Pathways intends to expand their services. Questions from Commissioners Might this be a conflict of interest since they do custodial work for the City of Ashland? . Pathways did disclose this and it should not be a problem. This application was for supportive living for people living in their own housing and not for the working side. ASHLAND HOUSING COMMISSION MINUTES October 235, 2008 3 - ---- urr--r Staff Recommendations- Reid explained that she evaluated the projects on whether they met the National Objective for the CDBG program, whether the project uses were eligible uses and that the project met all Federal requirements. Reid also confirmed that the projects met the objective as outlined in the City's 2005-2009 Consolidated Plan. The staff recommendation is as follows: Due to a limited amount of CDBG funds staff recommends that The Housing Authority of Jackson County's proposal be funded in full Continent upon Council approval of the Clay Street purchase. The Housing Authority's application is contingent upon the acceptance of the Clay Street purchase which will not be known until November 4, 2008. At that time staff's recommendation would be to fund the HAJC proposal since it meets the highest priority need ranking. If the Clay Street Proposal does not gain approval staff would like to make a backup recommendation to fund Ashland Supportive Housings proposal to the least extent allowable while still remaining feasible in an effort to make the most of the cities limited resources. Goldman acknowledged that in his ten years with the City he has gone through countless CDBG applications and wanted to recognize that the application from Ashland Supportive Housing is one of the better ones he has seen. Chair Bill Smith opened up the Public Hearing - No one came forth to speak. The Public Hearing was closed. Hauck/Ayars m/s to approve the staff recommendation and forward our recommendation as a Housing Commission to the City Council that we grant the $345,00 of CDBG funding to the Housing Authority with the contingency that if the Clay Street project is not approved by the City Council that we recommend Ashland Supportive Housing would be awarded the funds. Hauck made an amendment to his motion to include public facilities improvements, public right of way improvements on Clay street and interior streets. Public facilities to include, curb, gutter, sidewalk, storm drainage, sewer line, street lighting, fire hydrants, and other eligible improvements. Ayars seconded it. Roll Call Vote: Commissioners Billin, Benjamin, Voisin, Ayars, Smith, Hauck and Frost, Yes. Motion Passed. Reid congratulated the two applicants on what a great job they did with their applications and presentations. SUBCOMMITTEE REPORTS Sub-committee Reports Finance - No report Education - No report Land Use - Ayars distributed minutes from their October 8, 2008 meeting. Their m.eeting focused primarily on the Hargadine Parking Lot as the best possibility for an affordable housing project. The Commission will be having an on site visit Wednesday October 15th from 3:00 to 4:00 p.m. Goldman stated there was a possibility that an agreement with Shakespeare was made giving them first right of refusal for development of Housing should they need it for their employees. Reid will investigate this agreement information. It was also suggested to get the specific address of homes that would have their view obstructed by the construction. Liaison Reports Council - Goldman said the Council met and approved the Annexation Ordinance without much discussion. It will go before them again for the second reading on Nov 4th with no public input. Parks Commission -The Parks Commission will be having a joint study session with the City Council on October 30th to discuss budget issues. They may also at that meeting discuss the Clay Street property. School Board - Frost was not able to attend. Frost noted he discovered that the School Board is not linked online. It was difficult to watch on line which was frustrating. Planning Commission - Benjamin congratulated Brandon on his preparation of his Regulatory Barriers Meeting, a joint meeting with the Planning Commission, City Council and the Housing Commission. ASHLAND HOUSING COMMISSION MINUTES October 235, 2008 4 -----IT-'---- Benjamin wanted to find out more information regarding the Coming attraction proposal on Ashland Street. Would it be possible to build residential units above the top floor? Benjamin wondered if perhaps the Housing Commission could recommend some consideration be given to that notion. Goldman reminded the Commissioners that the Housing Commission had previously requested that the City Council expand their powers and duties including making recommendations on current planning actions, and was denied Similarly, because this application did not include affordable housing or any housing, it wouldn't have come before them as part of the pre app process. QUORUM DISCUSSION-REVIEW ORDINANCE The Commissioners discussed the Resolution 95-25 (Resolution creating the Ashland Housing Commission and establishing its objectives and responsibilities) Section 3 - Quorum - The Commissioners decided to review all, of the Resolution to see if they would like to make any other changes before sending this forward to the City Council for amendments. They decided to bring back a proposal ordinance that incorporates the changes they discussed at the next Housing meeting. This will be a discussion item on the November agenda. Frost recommended that the Housing Commission appoint a liaison with the Homeless Community. This will be on next months Agenda. NOVEMBER AND DECEMBER MEETING DATES DISCUSSION November meeting date - Tuesday, November 25, 2008 - 4:30-6:30 pm, Community Development Building December meeting date - Tuesday, December 16, 2008 - 4:30-6:30 pm, Community Development Building UPCOMING EVENTS AND MEETINGS City Council Regular meeting - Amendment to Annexation Ordinance/Clay Street November 4, 2008, Council Chambers 7:00-9:00 p.m. NOVEMBER AGENDA ITEMS Discussion of liaison with Homeless Community Resolution 95-25 suggestions for alterations or additions Goldman gave an update regarding the financing side of the Clay Street project. The site layout is the same. Concerns were raised by Council members about the nebulousness of the Lithia Lot portion of the proposal. With regard to the contingency that the purchaser would accept the value of the Lithia Lot at $500,000 if the purchaser received planning approval for the proposed project, if he did not then the City would have the option to buy back the Lithia Lot for the same price, or refund the difference between the appraised value ($350,000) and the accepted value, (which is a $150,000 difference). In speaking with the City Attorney he was concerned that there was a potential bias that could be argued in the future if it came back to Council upon appeal of a Planning Action. Project that was approved or denied and was appealed to council someone could make strong argument that they had a $150,000 interest in the outcome. The seller, Doug Irvine, is now amenable and is accepting its value at $500,000 with no contingency. Goldman said he will be forwarding to the City Council the previous motion made by the Housing Commission unless otherwise directed. The motion was: The Housing Commission made a motion (Hauck/Ayars m/s) to recommend to the City Council that they proceed with swapping the land on Strawberry the three lots for property on Clay Street. Voice vote: all ayes. Hauck/Billin m/s that they recommend to City Council that they proceed with swapping the land on Strawberry, the tree lots, plus the parking Lot on Lithia Way for property in the Clay Street Project. Voice Vote: Motion Passed. Smith will try and attend the City Council meeting on November 4, 2008. ADJOURNMENT - The meeting was adjourned at 6:26 p.m. Respectfully submitted by, Carolyn Schwendener ASHLAND HOUSING COMMISSION MINUTES October 235, 2008 5 III ,..."-r~ ;~n PJ:.\..f:;';'ll '...... .. (.. I(~ . '."<'c':! ~ ~~ C "";'~ :-- t · ".. DF' .,.#~1W"'" CCSrb\ ,\,1:1 :.,: ,', CITY OF ASHLAND 2008 Program Year Community Development Block Grant (CDBG) Application These completed Sheets shall be included as the first pages on all submittals. I. APPLICANT INFORMATION Applicant Organization Name: HousinaAuthoritv of Jackson County Executive Director's Name(s): Scott Foster Board Member Names (attach separate sheet) Applicant Mailing Address: 2251 Table Rock Road Medford, OR 97501 Applicant Street Address: 2251 Table Rock Road Medford, OR 97501 IRS Classification: Municipal eorooration Federal Tax 10#: 93-0578087 Mission Statement: TO PROVIDE, DEVELOP AND PRESERVE DECENT, SAFE AND AFFORDABLE HOUSING TO FAMILIES AND INDIVIDUALS WHILE COORDINATING EFFORTS TOWARD SELF- SUFFICIENCY II. CONTACT PERSON (designate a contact person who is familiar with the project) Name: Bettv McRoberts Title: Proiect Developer Phone Number: 541-779-5785 Ext. 1023 Fax Number: 541-857-1118 E-mail Address:betty@hajc.net 111- III. PROJECT INFORMATION SUMMARY The Housing Authority of Jackson County is planning the construction of 60 units of Affordable Housing located at 380 Clay Street. This will be a joint effort with the City of Ashland and the Affordable Housing providers in the region to bring much needed affordable rental and homeowner housing to the populations with housing burdens. Phase I will be 60 units of affordable workforce rental housing developed by the Housing Authority. This housing will serve the workforce community earning incomes in the range of 300/0 to 600/0 of area median income. This component of the housing will be placed on approximately 3.75 - 4 acres of the initial 10 acre site. Phase II of the housing component will be developed in the future as the City is able to bring in other providers. This future housing component of the site is approximately 1.25 acres. The remaining land on the site will be used for possible park expansion or additional affordable housing and wetland protection. The Housing Authority is requesting funding from the City of Ashland Community Development Block Grant allocation in order to complete infrastructure improvements and for predevelapment costs to move the land through the planning and partition process. The City will require Clay Street to be improved along the frontage of the 10 acre site. Two new streets will be constructed on the interior of the 10 acres to serve the affordable housing. These new streets will be dedicated to the City and improved with CDBG funds. The 10 acres previously was approved for a market rate development of 107 units of housing. A partition will be necessary to divide the land between the various parties and will require a new site plan. This application for CDBG funding will also include the expenses necessary to satisfy those planning and zoning requirements. The Housing Authority is asking for the available $345,000 in CDBG funding at this time. The Authority has committed at least $1,200,000 to the project to help purchase the land. The Authority will be applying to the State of Oregon for funding a housing project on the 3.75 acres. The total cost of the housing project will exceed $11,000,000. TheCDBG funding is crucial to the development of the affordable housing for the target population. For the purposes of this application the project is the public infrastructure for the benefit of the affordable housing and certain eligible predevelopment costs. Project Name or Title: Clav Street Sixty Unit Affordable Housina Expected Completion Date: Fall of 2010 Requested CDBG Funds: $ 345,000 Funds from Other Sources: .$ 173.870 $ 518.870 Total Project Cost: 2 ~------rr-T- Application Contents Provide the information listed below numbered and in the order listed so that we can find the required information easily and award full credit for your responses. 1) Complete Application Form (see page 16). 2) A project summary including a brief description, project background and a list of project objectives The Housing Authority of Jackson County has a mission to provide affordable housing to low income populations of the County. Ashland has been a particularly difficult area for the Authority to develop or acquire housing due to the high cost of land. The Housing Authority has 8 units of Public Housing in Ashland, four of them single family homes. The Department of Housing and Urban Development has given the Authority permission to sell these four homes and invest the proceeds in more cost efficient housing. It is the intent of the Housing Authority to develop this project with the City of Ashland in order to provide 60 units of affordable housing. The proceeds from the sale of the single family public housing units will be used to make up the difference in the high land costs attributable to Ashland. The extensive infrastructure required to develop this site on Clay Street will also be more costly than normal. The Authority will be putting approximately $900,000 of equity into this project. These funds from the sale of the four public housing units will leverage 60 units of new affordable workforce housing. The Authority needs the CDBG funding to complete the funding of the development because there are no other funds to make up this gap. We are not the only ones aware of the problems involved with housing Ashland's population of lower income persons; whether they are renters or homeowners. The City has documented this need in the 2005-2009 Consolidated Plan. There are many examples in the document to illustrate cost burden for both renters and homeowners alike. The statistics used for the Consolidated Plan were primarily taken from the 2000 Census Data. By examining the problems that have unfolded since those statistics were gathered, it is easy to imagine the plight of low income persons in their quest for decent housing has become more difficult. Actual incomes have stayed flat or gone down, rents have continued to increase and the cost of homeownership has skyrocketed. The median sales price of a home in Ashland in the year 2000 was $188,400 according to the Consolidated Plan. Many low income persons actually tried to become homeowners in this '"' -' -~-~Ir 1 period of time and now find themselves back in the rental market in a more precarious financial situation than where they started. The State of Oregon has identified Ashland as one of the communities in the State where renters have high rent burden; paying more than 300/0 of their income for rent and utilities. The information was recently published by Oregon Housing and Community Services Department as part of the Consolidated Funding Cycle process. Seventy three percent of the renter households this housing will serve in the City of Ashland are rent burdened, according to the State. The State's definition of workforce housing for the CFC is 300/0 to 600!c> of median income, published by HUD. By using the American Family Survey for Jackson County and projecting the growth of households since the 2000 census was gathered; it is estimated there are 1330 renter households in Ashland earning between 300/0 and 600/0 of median income. Considering 730/0 of those are rent burdened, there are over a thousand households that could benefit from more affordable housing units. The Housing Authority will develop approximately 3.75 acres of the 10 acre site for the 60 units of rental housing. The Authority will be the lead on the project, developing Phase I. This will require a joint purchase with the City of Ashland, a new site review to effect a partition of the land, an application to the State of Oregon for funding the housing development and the development and oversight of the two separate projects; the housing project and the off-site infrastructure improvements. The off-site infrastructure will not only consist of the improvements to Clay Street but also the creation of two new City streets that enter the 10 acre site to serve the housing. These two new streets are a total of 788 feet in length. Cost estimates for the improvements include all City required improvements except utilities such as water because these have not been specified at this time. If the housing component is funded in the Spring 2009 CFC, construction will begin as early as winter of 2009. Construction of 60 units will take one year or less, based on past experience. The Authority is requesting CDBG funding in the amount of $345,000 in this application for costs related to zoning and partition and for the infrastructure improvements to City streets abutting the Affordable Housing. The Authority intends to request additional funding in the approximate amount of $130,000 from the City's CDBG allocation for 2009. At this time there is no way to know for sure what the City will require for off-site improvements, although some assumptions can be made from looking at the former owner's approved site plan application. The former owner was required to provide pedestrian connectivity to the next subdivision; this will probably also be a requirement of this development. There will be extensive storm drainage requirements to the wetlands on the property to the North. Those types of improvements offsite would not be eligible 4 IIUT for CDBG funding because they are not directly adjacent to the affordable housing, although they are required as part of the site review. The point to stress here is the extraordinary burden of offsite expense on this project. The two new public streets that enter into the 10 acres for the benefit of the affordable housing will eventually be used for the benefit of the other uses surrounding the project; but for now, the affordable housing must bear that expense because we are the first to build a project in the 10 acre parcel. At this time the conservative cost estimate for the CDBG project is $518,870. This estimate is not all inclusive due to unknowns that will arise during the planning process. The first portion of the improvements, the improvement to Clay Street frontage in the amount of $124,915 will commence in May, 2009. This amount of funding, along with the planning costs incurred to get through site review and partition will amount to $184,215. It will be necessary to expend these funds prior to the construction of the other two public streets due to the time constraints on expenditure of a portion of the CDBG funding. The remaining CDBG funding is not sufficient to complete the two streets. These will wait for additional funding; either additional CDBG funding or funding from the housing development project. Objectives of the Affordable Housing Project: · Provide 60 units of housing affordable to families earning 300/0 - 600/0 of area median income. · Put restrictions on the timeframe to make this housing stay affordable for it's economic life. · Disperse the affordable housing throughout Jackson County to areas where it is needed the most. · Decrease the gasoline consumption as persons working in Ashland can afford to live where they work. · Help the communities diversify by bringing young families and children back to the area. · Be good stewards of the land; help to create the wetland and maintain the natural state. · Build the most energy efficient housing possible within the budget allowable. · Continue to maintain the internal controls and systems within the Housing Authority that will make this housing good for residents and for the community. · Deliver the appropriate services to the residents of the housing to make their lives less stressful.and to give them opportunities to reach their goals. The CDSG funding for the infrastructure improvements to the public streets and the planning costs is the "Projecr for this application. To be eligible it must directly serve the affordable housing. One hundred percent of the units will be rented to residents earning less than 600/0 of AMI. This is the upper limit for Low 5 ---~...--. Income Housing Tax Credits, one of the funding sources requested in the CFC. The other funding sources for the housing will be HUO HOME funds which will be granted to the project, Oregon Lender Tax Credits to lower the interest rate, and the permanent loan. The ownership will be a Limited Liability Corporation with the Housing Authority as the Managing Member. At the end of the 15 years the Limited Partner will step out of the project and the Housing Authority will continue on as sole owner. This will be the Authority's sixth project in this model. The rents will be affordable primarily to a person at 500/0 of AMI. The bedroom mix will be 1, 2 and 3 bedroom units containing both flats and town homes. The project will have an onsite community room for the residents, including a computer lab. A playground for the children will be provided. COSG funding cannot be used for the construction of the units. 3) Property and Project Information relating to acquisition, rehabilitation, site clearance, and development (section not applicable for social service applications involving direct services to qualified low- or extremely low- income persons) Details regarding any property proposed for acquisition indicating the following: The COSG funding will not be used for acquisition of the land. However, because the improvements are only eligible because of the housing it is necessary to answer the questions. a) Property location relative to jobs, schools, transportation, shopping and services There is an area map attached to the application as Attachment A. This is a good location for residents to walk 0' bike to work, shopping and services. The public transportation is available on a major arterial less than a half mile from the site. Schools are nearby. b ) Total floor area of buildings, and size of land site The approximate square footage of the buildings will be 56,500 sf. The land area is 163,350 sf. c) Types of residential units, number of each type unit, and total number of bedrooms At this time the project will consist of a mix of 12 - one bedroom flats, 6 - two bedroom flats, 32 - two bedroom townhomes and 10 - three bedroom flats. d) Number of extremely-low, fow-, and moderate-income units proposed The project will be available to families earning less than 6001<> of AM I. e) Number of units accessible to the disabled 6 II I ---- The Housing Authority always make 50/0 of the units fully accessible to wheelchair residents. An additional 20/0 are accessible to the hearing impaired. The standard used is Section 504. In addition, all ground floor units meet Fair Housing. The project will also meet the State of Oregon's Visitability requirement. f) Square footage of units and description of amenities such as private balconies or storage areas The project square footages are based on the last project, Scenic Heights, which is under construction. One bedroom units: 665 sf Two bedroom flats: 888 sf Two bedroom townhomes: 948 sf Three bedroom flats: 1170 sf The State of Oregon has minimum requirements for indoor and outdoor storage in its projects. The Authority installs covered balconies and patios for the enjoyment of the residents. g) Square footage of common areas such as community or laundry rooms The community room will be approximately 1100 sf. The units come equipped with an Energy Star washer and dryer, negating the reason for having a common laundry room. h) Square footage of commercial space, if any NA i) Year property was built. NA j) Describe condition of any existing housing proposed for acquisition and any alterations planned. Briefly discuss the total cost of the proposal relative to new construction. NA k) If the project involves rehabilitation attach a description of the work to be completed. NA I) Describe the target population. Include the suitability of the property for the target population, the tenant selection process, brief description of any residential services and the resources identified to fund the services. The target population is the workforce population earning 30% to 600/0 of AMI. For a family of three this currently cannot exceed $28,560 at the time of occupancy. These incomes are adjusted by family size for the area and published each year by HUD. This situation might apply to a single parent with two children. There are approximately 1300 renter households in Ashland earning between 300/0 and 600/0 of AMI. 7 11I- The project is suitable because of the location to services, transportation, schools and because of the park and YMCA next door. There are also service jobs within walking distance. The residents place their name on a waiting list for this housing. The Authority checks for criminal background and former landlord references. The Authority does participate in the Second Chance Program. The Authority provides services to the residents, both onsite and off. There is a full time staff at the Authority whose job it is to identify the needs of a particular population and then deliver those services to the residents. Examples include computer classes, budgeting classes, second language classes and a complete long list of other options. For instance, many of the housing communities are now interested in starting a community garden. The resident services are paid with the operating budget of the project just like the maintenance and occupancy staff. This has been required by the State of Oregon for many years and the Authority is in total agreement with the policy. m) Indicate how many years the property will remain affordable and the mechanism that will be used to ensure the affordability period. The Housing Authority develops this project in conjunction with a Limited Partner in order to get the equity from the sale of the Low Income Housing Tax Credits. The LIHTC has an affordability restriction of 30 years by federal statute. In addition, the State of Oregon awards extra points if the project will stay affordable for longer periods. Typically the affordability period is 50 or 60 years. The Housing Authority will be the sole owner at the end of 15 years. The refinancing of the loan is necessary at 20 years due to the term of the Oregon Low Income Housing Tax Credits. Projections for the housing budgets are planned for 30 years to ensure the property will stay affordable through these changes. The bottom line in the case of the Housing Authority is the mission; to provide affordable housing and never turn this housing to market in the future. 4) Briefly describe the services to be provided, if any, and describe the eligible target population receiving direct benefit from these services (low-income, homeless, special needs). The CDBG funding from the City will not be used to pay for resident services. The services mentioned in 3 (I) above are provided as part of the ongoing operations of the housing development. 5) A work program and time line including a complete list of tasks with estimated start and completion of each task (please complete attached Form A - Project Schedule). 8 -,.,.-,- The CDBG funding will be used to pay for two different items in the furtherance of an affordable housing project on Clay Street; costs to partition the property and the actual improvements to the public infrastructure required by the City to serve the housing development. Please see Form A for the Schedule. 6) Financial Information A budget describing total cost, cost per task, existing (secured) project funds and unfunded costs. Identify any and all source(s) of funding. This would include other Federal and State grants and loans, monetary donations, in-kind contributions, volunteer labor, donation of materials and supplies, etc. In addition to addressing the questions below please complete attached Form B - Uses of Funding & Form C - Sources of Funding. Provide a detailed financial description of the proposed project, including Rent Schedule, Sources/Uses of Funding and Operating Budget Income/Expense, and utility allowances a) Describe the financial assumptions used to develop the operating budget. Include projected rent increases, other sources of income for operation and maintenance expenses, and inflationary factors. For social service award requests please include financial assumptions relating to increases in wages, materials and overhead, or other costs associated with the proposed activity. The Authority starts building a project proforma with the knowledge of what it takes to operate the project on a day to day basis. This information is taken from the Housing Authority's database of 900+ units of different types and ages of its housing. The other assumptions are the rents; rents the Authority wishes to charge for the population or rents the funding sources require to be charged. This results in a Net Operating Income for the project. This is the amount left to pay for debt service and required cash flow. Items to be paid from cash flow could be deferred developer fee or other required fees to Lenders. The NOt will dictate at this point how much loan can be carried by the project. The gap between what it takes to build a project and what the loan will cover is where the grant and tax credit equity is needed to make projects happen. In the prelill}inary proformas of this project the Authority is estimating the project can carry a loan of $2,700,000 with an additional deferred developer fee loan of $350,000. The project costs are in excess of $11 ,000,000. This gap must be filled with tax credit equity and grant funding or the project cannot happen. The Housing Authority usually takes the developer fee from one project to the next. In this case we are taking a small developer fee and deferring the majority into the project. Th'e approximately $900,000 in cash from the Authority will come from the sale of the four Public Housing single family units in Ashland. Normally the Authority would not have access to this cash. This approximately $900,000 9 ----.----rrT will be left in the project as a deferred loan to the Partnership and be forgiven at the end of the 15 year period. This is the only way to finance a project with such expensive land and off-site costs. Certain assumptions used in building proformas; 20/0 yearly increase in rents, 30/0 yearly increase in operating expenses, $350 per unit per year Replacement Reserve contribution, utility allowances follow the Housing Authority' utility allowance charts and are updated annually. The targeted rents for this project are $453 for a one bedroom, $543 for a two bedroom and $620 for a three bedroom. The Authority went to the Engineer, Construction Engineering Consultants, who had completed the original work on the site for the cost estimates used to compute the CDBG Project. They were able to put an estimate together for the Clay Street Improvement. For the estimated 788 feet of new City streets that will serve the project they used a per linear foot price of $424.69 for a total of $334,655.72. They gave an estimate for completing their design work in the amount of $14,300. There is an estimate from the Architect, Dan Horton, in the amount of $35,000 for this portion of the work. Agate Engineering has submitted a bid to create a new mitigation plan in the amount of $10,000. The Authority is seeking a bid from the organization that completed the original mitigation plan for the wetlands. The estimate from CEC includes all known factors at this time including half street improvement on Clay Street, curb and gutter, sidewalk, storm drainage, sewer line, street lighting and fire hydrants. The estimates are attached; Clay Street is a full price estimate for the frontage and the two new interior streets are a per lineal foot estimate. This estimate is just an estimate at this time until after site review when the City will dictate the requirements. b) Attach letters of funding commitment from other sources, if available. Attached is a letter of interest from US Bank. c) Will a property tax exemption be requested for the project? If so, what is the estimated dollar value of the tax exemption over the twenty-year period? The Housing Authority's properties are statutorily exempt from paying property taxes. This includes any properties the Authority is involved with such as a LIHTC project or a project where the Authority is acting General Manager. The authorizing statute is ORS 307.092 (7) Eligibility for Federal Funding 10 ...-,--- Will any of the following activities be part of the proposed project? · Property Acqu isition · New Construction (non-residential) · Removal of Architectural Barriers · Rehabilitation Costs · Development Costs · Client Services · Specification Preparation (Construction/Rehab) · Relocation Benefits (if required) · Appraisal (for acquisitions) Federal funding has certain regulatory requirements. The following information is required to determine eligibility for federal funding. No, the COBG costs will be used for the benefit of the affordable housing project at 380 Clay Street and not for the new construction of the project. The City of Ashland has an approved site plan for the 10 acre site. The 10 acres was approved to be annexed into the City under the presumption it would be developed as a 107 unit market rate project. In order for the Housing Authority to move forward with the project there must be a new site plan presented to the City for a partition of the property. The Housing Authority will prepare the materials for the partition and is asking for CDBG funding to help cover costs. This partition will involve a new survey, a new wetland plan, engineering plan for streets, sewer, water and storm water and a new site plan for the housing. The remainder of the requested $345,000 in CDBG funding will be used to actually build the public infrastructure improvements on Clay Street and the two new City Streets created on the interior of the 10 acre parcel. These will be in the public right of way and will benefit the affordable housing. This is also an allowable CDBG expense. The infrastructure costs on Clay Street can be anticipated due to the previous application to the City. The Authority is using the same Engineer as the current owner to estimate costs and bring the application through partition; this will hold down costs by not duplicating already existing work. General Information a) Is the proposed project within the Ashland City limits? If not, explain. The property at 380 Clay Street was annexed into the City of Ashland in March of 2006. b) Specify the proposed tenant or client income level; state in terms of percentage below area median for the Medford-Ashland standard 11 -n-T metropolitan statistical area (MSA). The current income guidelines are included on page 10 above. The residents of the affordable housing must be 600/0 of AMI or below to live in a L1HTC project at initial eligibility. They do not need to move as their income goes up but the next available tenant must meet the income guidelines. This project proforma has not been refined to the point where the Authority can say exactly how many residents will be at 500/00/0 of median and below but the use of Oregon Lender Tax Credits in a project demands the reduction of rents to lower levels. Using the OAHTC results in a range of income levels below 600/0 of AMI in a project and this is dependent on several factors. When the Housing Authority applies for funding and requests Oregon Lender Tax Credits it is always unknown how many will be awarded and whether there will be a bank capable of making the permanent loan to the project that also has the ability to use the credits. c) Describe any financial or legal commitments made to the project. The Housing Authority has met with the City numerous times, presented the proposal to the City Council and is prepared to enter into a Purchase Agreement with the owner of the property in conjunction with the City. Housing Development, Land Acquisition, or Rehabilitation Specific Information d) Will permanent housing units be converted or demolished? If so, how many? NO e) Is the proposed housing site located in a 100-year flood plain? NO f) Has a level 1 environmental assessment been done for the site? If yes, attach the report. The Housing Authority will be completing a Phase I Review as a requirement for any funding source involved in the housing development. The Authority has not completed one at this time. g) Is the proposed housing site located adjacent to a major arterial road or near a railroad? NO h) Is the proposed site located adjacent to an aboveground flammable storage tank? NO i) Will the proposed project impact historic features? If yes, explain. 12 II .-- NO, there is an old house on the 10 acres but it is not on the Authority's 3.75 acres. The old house is not salvageable. This was determined in earlier discussions with the former owner and the City. 8) Briefly describe the agency's mission and service history. The City may request copies of the agency's financial audit or review for the last two years prior to contract signing in order to determine agency's capability to successfully complete the project. The Housing Authority was formed by the Jackson County Commissioners in 1969 to assist low income persons in obtaining affordable housing. At this time the Authority assists 1705 families in Jackson County with Housing Choice Vouchers in the private landlord community. Approximately 99 of these vouchers are being used in the Ashland area. In addition the Housing Authority owns and operates 906 units of housing rented at below market rates to the low income renter population. The Authority has experienced and fang term staff. Scott Foster, Executive Director, has been the Director since 1986. Prior to coming to Jackson County he was the Director of the Josephine County Housing Authority. He has forty years of experience in construction, development and management of housing. In addition, he is an expert in the myriad of regulations accompanying HUD and other Federal, State and local programs. The Authority has experienced staff to develop affordable projects. The five staff persons in the Development Department acquire land or projects and take them through the funding and land use processes, hiring consultants as needed. Betty McRoberts, Director of Development, has been with the Authority for 20 years. The Department is experienced carrying out Davis Bacon and BOLl regulations in spending Federal and State funding on construction projects. The Department has one project under construction at this time; Scenic Heights, a 48 unit new construction project in the City of Central Point. Certificate of Completion should be achieved in August 2009. Adroit Construction is the contractor. The Authority is finishing a $1.25 mill rehab to the acquisition project on Poplar Drive in Medford and should be finished by November 1, 2008. The Authority manages all of its owned properties and also one tax credit property for ACCESS, Inc. Tenant selection and maintenance are done from a centralized computerized system. This system affords standardization of policies and regulations and affords the Authority a method for tracking success or failure. 9) Will the project promote self-sufficiency for extremely low-, low- moderate-income families, or individuals with special needs? 13 II The Agency is required to provide a resident services program at each site. This is discussed in 3 (i). 10) Please identify how your project benefits extremely low-, low- and moderate-income individuals or individuals with special needs. a) For proposed projects serving a low-income area (ie public facility improvements, community center or other neighborhood serving facility), provide the following data, including documentation of the sources of information for the following statistics: NA · Number of extremely low-, low- and moderate-income individuals served in the project area on an annual basis. · Total number of individuals served in project area on an annual basis. b) For proposed projects serving a target population (Le. homeless families, battered women, people with AIDS, special needs populations, etc.) provide the following data, including document sources of information for statistics. Specify the target population to be served. Number of low and moderate-income individuals in target population to be served on an annual basis. (This count cannot include repeated visits or use by the same individuals.) Total number of individuals in target population to be served on an annual basis. Percent low and moderate income. The target population is low income renters earning 60% of median area income and below. 11) Briefly describe how your proposal will ensure that moderate-income individuals do not benefit to the exclusion of extremely-low or low-income individuals. The housing is limited to the income level 600/0 of AMI and below at initial lease-up. 12) Indicate if you expect the project to cause low and moderate-income housing to be demolished or converted to another use (see attachment "Relocation Strategy Guidance"). If so, explain.' NO 13)Project Feasibility Please describe your readiness to proceed concerning whether land use issues have been resolved and whether your organization has the administrative capacity to complete the project proposed. 14 -II'U - Describe the feasibility of the project: a) Does the applicant have the experience and capacity to complete and or manage the project proposed? Briefly describe applicants capacity and experience in providing, maintaining and managing housing, particularly low-income housing similar to the proposed project. . The Housing Authority has completed 6 tax credit projects in past years. There is a learning curve involved in this financing. The Housing Authority receives excellent reviews managing the properties for compliance with tax credit requirements and State regulations. The current staff has developed 26 properties; 16 new construction and 10 acquisitions and rehab. Most of these developments required multiple funding sources resulting in overlapping compliance issues in future years. The Authority has a wealth of knowledgeable staff to complete the project for which the CDSG funding will be used; planning activities and the completion of infrastructure. If the staff does not have the expertise, they hire it. b) Does the applicant have a purchase option on the property, letter of support from the property owner(s), or some other assurance that the property is available for acquisition? The City of Ashland has been having discussions with the owner of the 10 acres. He has indicated he will not wait for a partition to sell the property; hence the reason for the joint purchase of the property with the City of Ashland. The City Council is holding a public hearing on November 4th to decide to go forth with the purchase. The Authority has the $1,200,000 in cash available to purchase the 3.75 acres. The Authority used unrestricted property to obtain a loan in the amount of $1 ,200,000 to purchase the Ashland property. When the housing project is funded the loan will be paid back at closing. Until that time, the Authority is able to carry the interest payments. c) Does the project require temporary or permanent relocation and if so have comparable units been identified and costs of relocation been accurately determined? Provide a tenant relocation strategy, cost estimate and existing tenant survey to. address federal Uniform Relocation Act requirements which may impact your project. NO d) Describe relocation strategy for the project if applicable. e) Does the project require land use approvals such as Site Review, Annexation, Zone Change, Minor Land Partition, Demolition, or Conditional Use permits? 15 -----IT-~ - --- The property does require a land partition to separate the Authoritis portion from the City's portion before the housing development can proceed with the construction. It does not require a partition in order to apply for the housing funding in February of 2009. The project is properly zoned and will not require any conditional use permits. The two new City streets will be dedicated at the time of the partition. f) . Has a pre-application been completed with the Ashland Planning Department? The pre-application to the City is being prepared at this time. The boundaries keep moving slightly depending on the City's wishes. As soon as these issues are resolved, the pre-app will be submitted; anticipated date is the week of October 20th. g) What is the condition of any improvements on the property and what is the expected life of the property? There are some old buildings on the property, none of which are usable according to several assessments obtained by the former owner. There will be some expense in the future to dispose of them. These buildings are located on the future City portion of the 10 acres. h) Describe commitment of project funding from other sources US Bank has expressed interest in providing both the construction financing and the permanent financing using OAHTC. US Bank was the lender on the Housing Authority's recent tax credit/bond financed acquisition of 94 units of Section 8 elderly housing 9n Poplar Street in Medford. KeyBank Community Development Corporation has also expressed an interest in buying the Federal Low Income Housing Tax credits if awarded. KeyBank uses the credits in a private placement. Key was the investor on the Authority's last two tax credit projects. Firm letters of commitment will follow after funding award from the State of Oregon. 14) Indicate whether the project will have any negative impacts on historic or architecturally significant properties or on the environment. All projects will be subjected to an Environmental Review Report and certain projects depending on scale, i.e. new construction, must undergo an Environmental Assessment. There is a significant wetland on the project. It is less than an acre in size. The current owner submitted an approved wetland proposal that fit his needs involving 16 -~------rr-,- moving of the wetlands to different areas of the site. The site plan now being considered has less impact on the wetland but will require a new mitigation plan. The mitigation plan will be completed by a consultant certified by the Department of State Lands. This will be an eligible expense for CDBG funding. This is necessary for site plan review. The Authority is experienced in completing Environmental Assessments for Housing Rehab and Housing Development Projects. If the project requires a consultant the Authority uses Agate Engineering or another approved firm. Please attach any other statistical data, letters of support, applicable experience of the sponsor, and evidence of financial support from other funding sources, or other material you believe will assist the City in its review of your proposal. Attached are drawings of the 10 acre site with the proposed land partition between the City and the Authority. The City uses for the land are affordable housing and/or parks. Other attachments include estimates for costs of the work involved, a list of the Board of Commissioners of the Authority, sample proformas for the housing project benefiting from the CDBG improvements and a letter of interest from US Bank. Although we were not able to get in touch with a member of the Land Trust to obtain a letter of support for this application it should be said that the Land Trust has worked diligently to bring an affordable housing project to this 10 acre site. They provided the Authority with all of the necessary history to move quickly on the application. They should be commended for their efforts. CDBG Application Checklist (see pages 23-24). Attach Forms A, B, 17 --~IIT-- CITY OF ASHLAND 2005 Proaram Year CDSG APPLICATION CHECKLIST In order to determine compliance with all applicable HUD regulations and to help to ensure that projects will be eligible for COSG funding, the City of Ashland will need to address all HUD requirements. The purpose of this checklist is to point out areas where potential problems could arise. Obviously, this is a comprehensive list, which must evaluate a wide array of different kinds of proposals. Therefore, not every item will be applicable to every project. Please fill it out entirely indicating all items which are not applicable and include it as part of your proposal application. A. Applicant's Background ..' .... .': Yes' .No NIA 1. Is the applicant a legal non-profit organization or unit of government? X 2. Do the proposed clients or users of the project meet HUO Income Guidelines (see page 10 for guidelines)? X 3. Does applicant have the capability to maintain written income documentation? X 4. Has the applicant made a legal or financial X commitment to a proposed project? 5. Is the applicant primarily a religious organization? X 6. Has the applicant administered a COBG project previou sly? X 7. Is your agency willing and able to provide all required reports and accountability to the City as required by HUD? X B. Project Location and Land Use Issues Yes . No NIA 1. Has a location for the project been selected? X 2. Is the proposed project within the Ashland City limits? X 3. Does the proposed project meet local zoning and land use laws? X 4. Are any land use permits such as a Site Review, partition, annexation or Conditional Use Permit required? X 5. Have these approvals been obtained? X 6. Does the project comply with current building code X requirements? 7. Does the project meet handicapped accessibility X requirements? 18 ----rr-T--- c. Environmental Issues Yes No N/A 1. Is the project located in the 1 aD-year floodplain? X 2. Is a wetland located on the project site? X 3. Has any environmental contamination been identified X on the project site? 4. Has asbestos been identified on the project site? X 5. If project involves an exiting structure, was it built X 1978 or earlier? If vear built is known, please specify. 6. Is the proposed project located on a major arterial or X near the railroad? 7. Is the proposed project located adjacent to an above X Qround flammable storage tank? 8. Does the proposed project involve a structure that is X 50 vears or older? 9. Will the applicant complete a Phase I environmental X review upon receiving a CDBG award? D. LaborRequirehients . Yes NO..' N/A 1. Does the project involve construction over $2,000 in X cost? 2. Will the project trigger Davis-Bacon wage X requirements? 3. Will the project trigger BOLl wage requirements? X 4. Does the project involve over $15,000 in City X awarded grants or contracts? E. Displacement and Relocation Yes No .... N/A 1. Will tenants be displaced by the project? X 2. Will a business be displaced by the project? X 3. Will housing units be demolished or converted? X F. Property Data Yes No N/A 1. Does the applicant own the property by fee simple X title? 2. Are taxes on the property current? X 3. Is insurance current? X 4. What is the current debt against the property? ? 1---- 5. What is the current use of the property? Farm 6. Has an appraisal on the property been conducted? yes If yes, what is the assessed value of the property? 19 ---------rr, - Form A.1 To be completed for Development or Rehabilitation Proposals Pro osals - The Entire Housin Pro.ect ..... ....Ac.t.btir. .........<:'$l~...~iI*~..... /i~~~~a~~~'~>~2; Option Site Acquisition Plan Development Pre-ap Iication Land Use A roval Construction Plans Final Bids Contractor Selection Buildin Permits ~t~nt~.:'."'.'JJ~~ti91j~......""" local state federal Non- overnment other l..9iiijA.pl ic~.ipn$:: . .. Construction loan Permanent P()r)str~ c:ti6niPtiase ......... Construction 11-1-2009 10-31-2010 Certificate of Occupanc 10-31-2010 Please provide your best (realistic) date estimates regarding the project schedule 11-04-2008 10-1-2008 10-24-2008 11-5-2008 6-1-2009 9-1-2009 6-1-2009 8-1-2009 12-01-2008 2..25-2009 10-24..2008 2-25-2009 8-1-2009 10-1-2009 8..1..2009 11-1-2009 10-17 -2008 2-25-2009 20 --~-rIT-- Form A-1 To be completed for Development or Rehabilitation Proposals COBG GRANT PROJECT ONLY .' ". .............iSlaI1Date '<Com<lE}tiohDate . . Activit Sitf:} .....f>>,..~~t1.~.i,~.~........'~.i O~V~IQ ..tn~t1t: . o tion Site Acquisition Plan Develo ment Pre-ap Iication Land Use A roval Construction Plans - Clay Street Improvements Final Bids - Clay Street Improvements Contractor Selection - Clay Street Improvements Buifding Permits - Clay Street Improvements Construction Plans - 2 Interior Streets Final Bids - 2 I nterior Streets Contractor Selection - 2 I nterior Streets Building Permits - 2 Interior Streets c;rantit ....Ji~ati6hs Local - Ashland COSG - $345tOOO Local - Ashland CDSG - $130,000 state federal Non- overnment other LeanA' lications Construction loan Permanent Construction Phase Construction - Clay Street Construction - 2 Interior Streets Certificate of Occupanc 11-04-2008 12-01-2008 10-1-2008 2-25-2009 10-24-2008 10-24-2008 11-5-2008 2-25-2009 3-1-2009 3-10-2009 3-10-2009 4-10-2009 4-10-2009 4-30-2009 3-10-2009 5-1-2009 6-1-2009 8-1-2009 9-1-2009 10-1-2009 6-1-2009 8-1-2009 8-1-2009 11-1-2009 10-17 -2008 11-18-2008 2-1-2009 4-1-2009 2-25-2009 4-25-2009 1-15-2009 1-15-2009 10-25-2009 10-25-2009 5-1 ~2009 11-1-2009 6-1-2009 10-31-2010 10-31-2010 Please provide your best (realistic) date estimates regarding the project schedule 21 ~r, Form B-1 To be completed for Development or Rehabilitation Proposals Uses of Funding Attached to this application are several estimated proformas for the housing project. The forms are the Proformas used for the application to the State of Oregon for funding: Sources Income with OAHTC This application for CDBG funding is exclusively for predevelopment costs and for infrastructure but it is difficult to look at just those items without looking at the overall budget of the housing project. At the hearing the Authority will be eager to share other aspects of the proforma, although the numbers are preliminary at this point. , 22 --"-ro" Housing Proposals Total Cost COBG Request Other Source(s) Acquisition Costs . .' . .... '.' :.:..... . . . .' Land Improvements Liens and other Taxes Closing costs Off-Site costs Other SUBTOTAL Pev~lo,pment Costs '.' .., .' .. i/ .....:......:......... .... .......... ::: .' .. :...... .:.'. ....... '.:.': ...... .. .... '. ". .' ....: Land Use Approvals Building Permits/fees (Include Engineering and Community Development Fees) System Development Charges (SDCs) Relocation Costs Environmental Report / Lead Based Paint Clearance Soils Report Survey Marketing Insurance Site elearance and Grading Pre-Development eonceptual Planning Other ~l.IblicFacilities . .' ....: .... . .., ....:. . .... ......:........... ................ ..... .... . . ......":"........ ...:. .' . .... '. ..... .....:. Improvements to Clay Street $124,915 $124,915 Two new Public Streets $334,655 $160,785 $173,870 (Roads. sidewalks & utilities) F~~s .': ":.' .'. ....: ." ..: :.' .:.. '.: . .' . _:"- .' . Architectural $35,000 $35,000 Engineering $14,300 $14,300 Wetland eonsultant $10,000 $10,000 Lender fees Construction Loan Permanent Loan Tax Credit Fees Developer Fee Consultant Fee ...-.- - - Other TOTAL $518,870 $345,000 $173,870 23 ---rr-T -- Form C SOURCE(S) OF FUNDS FOR OPERATING EXPENSES WORKSHEET Completeness of this worksheet establishes the capacity of the organization to sustain the operations of the program( s). ;SoUrces ..... c'..:: .c Federal Grants State G ra nts Local Grants Non Governmental Grants Donations/Gifts Applicant Contribution Program Income Loans Rental Income Other (specify) ; TOJ:Al.. Secured ...... ......../~~~~1~~?~I...icTeritative. ..... .comDa~~ent . . . 'condlti6ris):>< . . ..c..... ...... .... $361,551 4-25-2009 ..;.........:..;...::........ ......:...: '" ...;....... ." . '. ..',' ..... ....-....... ...... " . . . .'.... ',' ."'. . . . . .' ,,' ::......:.:.:.:...:.... Please provide a description the timeline of loan and grant application dates as related to the proposed project. Specifically, for any tentative funding sources please provide application dates, award dates and funding availability dates. Ashland COBG Grant Funds for Offsites and Predevelopment; 10-17-2008 $345,000 Ashland COBG Grant Funds for Offsites 2-2009 $130,000 State of Oregon - CFC End of February. 2009: Low Income Housing Tax Credits allocation $750,000, Oregon Lender Tax Credits for the full amount of the Loan (approximately $2,700,000), HOME Funds in the amount of $600,000, Housing Trust Funds in the amount of $100.000, Low Income Weatherization $100,000 Business Energy Tax Credits; Summer of 2010, $30,000 Housing Authority has obtained a loan in the amount of $1.200,000 for the joint purchase of the land up front. The Authority used unrestricted property to obtain this short term loan. Housing Authority is planning to leave approximately $900,000 in equity investment in the project upon the funding of the Housing Project. 24 [I The bank Joan for the project is usually made by a Community Lending arm of a major banking establishment or NOAH; the Network for Affordable Housing, a consortium of banks. The Oregon Lender Tax Credits are vital to the project because they reduce the interest rate by 4%. The loan commitment will not be made until the project is awarded by the State of Oregon. The banks are expressing interest in the project as evidenced by the letter from US Bank. KeyBank has been our partner on the last two projects and has expressed great interest in investing in the tax credits for the Ashland Project. The pricing is down right now from what we have been accustomed to in recent years but we can only hope it will get better before pricing. Again. the firm commitment will not be sought until after the State of Oregon awards the project credits. 25 ---~----~~-II .-. DISCLOSURE OF INTERESTS To assist the City of Ashland in determining whether there may be a potential conflict of interest related to the expenditure of Community Development Block Grant funds we request the following information be provided by applicants: Form D ORGANIZATION NAME: _Housing Authority of Jackson County Organization is: 1. Corporation ( ) 2. Non-Profit [SO 1 C3 ( ) 3. Partnership ( ) 4. Sole Ovvner ( ) 5. Association ( ) 6. Other ( X) _Housing Authority under ORS 456 DISCLOSURE QUESTIONS If additional space is necessary, please attach a separate sheet. 1. State the names of each "employee" of the City of Ashland having a financial or personal interest in the above mentioned "organization" or project proposed. Name, Job Title and City Department 2. State the name(s) of any current or prior elected or appointed "officiall" of the City of Ashland having a potential "financial interest" in the organization or project. NamefTitle 3. Provide the names of each IIboard member" of the Organization seeking CDBG funding Name Board, Commission, or Committee (may be attached as a separate Sheet) See Attached 1 2 3 4 5 6 7 8 9 10 11 12 additional If the applicant has provided names in question 1 or 2, please provide details regarding any known potential conflicts of interest in an attached narrative. 26 ATTACHMENT A AREA MAPS -'---II-T ?: .... C) n ::r 3 CD :::s .... )> \.I'''') v",..... to:cs!7.cc.e f 3~ 3~);'M Jchn$~\".J~~ ""i \ i I I i i I I I I i I I I i ~ ~ ~I~ :;>,::- 16 i 1> /~ / ~ \, :r, '( i I -~. I ..... ) I ./ c..n . I / .__ eX> / .:::~-.. );1:1, M.\l' ';9 l( '(:\1 r ~ I- I .. I~ ."-';.:;. -:-r' '. ..-.. _oil I I i ~~ ~ j !;;i ~l n ---- I t__A(,..,_.... ~...!!!.l.__..-, L i~ __. 11 -...-.-- ) ------------1 r--'-~=- .S.fRFFT.O.------- ~ /~ i I ~ Ilf ---:'------=: II I~! ,ISl '" t7l ;::/ -Ii 9 [,~" >;;~~~ I ;J~~j i HI I f i \ \. \ \. r"-' j. I"j! J-' . ! ~v:",,' / i ~~ -.-___n..._.__.,__ / ' I ~~ I ,..,. :' i/ ;.~ f ~~[ -', I' L_}..J ~~I ;:~ I II n.,' .. . r;.. / p/m I ~ I ~i; :: f ~l~: "l$: /. ;'8 t / I ; " / ! ; i ,t ~ 01 I -Jr.. ... ~ V> m m ~~ ;/} m m s: 2; r' 8 ~ ;E .._.... f'l...,...., '-~-~~::~~~~s.{.---~~_/) = '- }::: > V') n!:71 ~n -0= ,; z :.; g n l..J "0\0 r-V') 3'? -<m ,.. ~ '" ,-, _. .----...--.------.-- 0 ~ ..___. ...__ h,)LM,\:\: -.-- ....-...- .. -...._..._~.-.._--_..__..- .~~~~_._.. .... "... ~ ?; ~ ....; '-'0 \. :;;:: ..... ~ r.n '\ Sc\-:).).~ :\);4 )- ""..,.....",."". 8 /' .// /i ....fT ~.V,f' .-:... a iJD nHii!!i~mH;~~ ! ~, ~~ = ~ ;' /0'/ //n> // :~~ .o~ s ", -.1 - . I '~II ~ ! "it I i~~ Z- ~C(j ~~ / ~S ,: /. >' Z ::;:...... ;,. -;:: > 5::~ r- - >t1'1 z= on - --rr---r ESTIMATES FOR INFRASTRUCTURE IMPROVEMENTS TO CLAY STREET AND TWO NEW PUBLIC STREETS II 1----- P.O. BOX 1724- MEDFORDt OR 97501. PH (541) 779-5268 . FAX (541) 779-3139 Clay Street Adjacent Public Improvement Cost Estimate October 10, 2008 Item Description Quantity Unit Unit Price Total Price 1 Mobilization 1 LS $3,000.00 $3,000.00 2 Excavation and Haul-Off 202 CY $15.00 $3,030.00 ,3 Geotextile Fabric 606 Sy $2.00 $1,212.00 4 Crushed Rock Base 150 CY $30.00 $4,500.00 5 Curb and Gutter 682 LF $11 .00 $7,502.00 6 2" Asphalt Pavement-Slot Paving 88 TN $120.00 $10,560.00 7 2" Asphalt Pavement-Overlay 220 TN $100.00 $22,000.00 8 Sawcut Asphalt 682 LF $3.00 $2,046.00 9 6' Concrete Sidewalk 4092 SF $5.00 $20.460.00 10 Residential Street Lights 3 EA $3,500.00 $10,500.00 11 Curb Inlets 3 EA $1,000.00 $3,000.00 12 12" HDPE Storm Drain 575 LF $35.00 $20,125.00 13 Fire Hydrant 2 EA $3,200.00 $6,400.00 14 Sanitary Sewer Manhole (48") 1 EA $3,000.00 $3,000.00 15 Sanitary Sewer Main (a") 86 LF $30.00 $2,580.00 16 Striping and Signing 1 LS $5,000.00 $5.000.00 T ota' $124,915.00 This preliminary cost estimate is based on concepts and not engineered plans. This estimate is intended to give a general range of the costs associated with the type and scope of work involved. 10/13/2008 1 of 1 Cost Estimate III P.O. BOX 1724- MEDFORD, OR 97$01- PH (541) 779-5268 . FAX (54)) 779-3139 Unit Price for On-Site Streets Cost Estimate October 10, 2008 Item Description Quantity Unit Unit Price Total Price 1 Excavation and Haul-Off 1.590 CY/FT $15.00 $23.85 2 Geotextile Fabric 4.780 SY/FT $2.00 $9.56 3 Crushed Rock Base 0.870 CY 1FT $30.00 $26.10 6 Curb and Gutter 2.000 LF/FT $11.00 $22.00 7 4" Asphalt Pavement 0.900 TN/FT $100.00 $90.00 8 8" Sewer Main 1.000 LF/FT $30.00 $30.00 9 48" Sewer Manhole 0.003 EAlFT $3,000.00 $9.00 10 8" Water Main 1.000 L F/FT $35.00 $35.00 6 Fire Hydrant 0.003 ENFT $3,000.00 $9.00 7 4' Utility Trench 1.250 LF/FT $30.00 $37.50 8 Street Lights 0.005 EAlFT $3.500.00 $17.50 9 15" Storm Drain 1.000 LF/FT $40.00 $40.00 10 Curb Inlets 0.010 EAlFT $1,000.00 $10.00 11 12'. HDPE Storm Drain Crossing 0.005 LF/FT $35.00 $0.18 12 Sidewalk 10.000 SF/FT $6.50 $65.00 Total $424.69 This preliminary cost estimate is based on concepts and not engineered plans. This estimate is intended to give a generaJ range of the costs associated with the type and scope of work involved. 10/15/2008 1 of 1 Cost Estimate ~.T-- ESTIMATES FOR PLANNING AND ZONING CONSULTANTS DAN HORTON, ARCHITECT CONSTRUCTION ENGINEERING CONSULTANTS, INC. AGATE ENGINEERING ---- -- T1' DANIEL R. I-IORTON . ARCHITECT ltb~ W. MAIN, P.o. BOX ~82 EAGLE POINT, OR S1~24 FI-fONEIFAX &41-8.30-1014 October 16,2008 Jason Elzy Housing Authority of Jackson County 2251 Table Rock Road Medford, Or. 97501 RE: Sixty unit apartment project in Ashland, Or. Dear Jason, This letter is to propose Architectural and Engineering fees for the above mentioned project. I am proposing a fee structure similar to that of Scenic Heights in Central Point which would include Design, Civil Engineering, Structural Engineering, Construction Drawings, Bidding/Negotiation, and services during Construction. The proposed fee is $187,500. I estimate the fees for Architectural and Engineering Work to achieve local site plan review, zoning and minor land partition to be S35,000 of the total proposed fee above. Thank you for the opportunity to work on this project and provide this proposal. Sincerely, Oaf( 1Io/<-tol( Dan Horton --~-_..-._- 'Tr T P.O. BOX 1724 · MEDFORD) OR 97501 . PH (541) 779-5268. FAX (541) 779.3139 Professional ServicEs Agreement To: Jason Elzy, Development Specialist Housing Authority of Jackson County Project: Willowbrook Affordable Housing - Ashland, OR Scope and Fee: Preliminary Cost Estimate: $1,650.00 · Estimate frontage cost for Clay Street · Determine cost per foot for public interior streets Public Street Engineering Design: $14,300.00 · Street and utility design for 788 feet of interior public streets - $9.500.00 o Excludes erosion control. detention, wetland coordination, and any other similar issue that is interior sitework dependent · Master planning of interior site as it affects roadway design and conceptual drawings for planning submittals - $4,000.00 · Minor drafting as needed to incorporate the Clay Street design into the new documents for planning submittals, zoning. and minor land partition - $800.00 Submitted By: --::?:~~ ~~ Michael J. Zar Slnskl. P.E. Date: J*S od 08 Accepted By: Date: -'----'---rr-o .: ~ ":".: :.',.: >', :':: ::.::', : ',:.)".: ':.;".:' :.......;"...: ,: .: "':::.:.: .: ",:" :", ":: : '< .:: <~" :"::':::'~:: '~::~;~:~~:;Lti~~"i:(jif:F$~{f~.r:;~~~<~~~~!i..t~::~~S~;~::.~:~~.::;'.> .... :~~: 1175 EAST MAIN sf SUI!E 1A -A..",-~~7G,.::T,~~~:-::~A/ '~" :]~~tF~rfFi MEDFORD, OR 97504 ",.,', ',:" II I 'lk: PHONE; (541) 282-7930 , ' " ~ FAX:(541) 282-7923 _.~-_.~_...._;----- E-mail: agate@engineer.com J5J!..fl,~,!~~~~1]~_ I '?_~. October 16, 2008 Mrs. Betty McRoberts Housing Authority of Jackson CO'unty 2251 Table Rock Road . Medford, Oregon 97501 RE: Proposal for Environmental Services for 60-Unit Affordable Housing Project at 380 Clay Street, Ashland, Oregon. Dear Betty: We greatly appreciate the opportunity to provide you with a proposal for this project. Our proposal is for providing assistance to the Housing Authority of Jackson County during the planning. permitting,' and approval process for the modification and regulatory application and approval process involving the modification of the wetland preservation, enhancement, and compensatory mitigation plan required for the development of the subject affordable housing project. Based on our discussions, and , the scope of work involved, we would propose to work on a time and materials basis with a limit to not exceed amount of $10,000 to facilitate applying for and receiving an approved plan modification for the wetland preservation, enhancement) and compensatory mitigation work that will be required for the Project Site. If YOll should have any questions, or would like to modify the scope of this proposal in any way, please call us at our office at 282-7930. We look forward to hearing from you and commencing work on this project. Respectfully submitted. AGATE Engineering, Inc. ~ A"'&:-- ~N:' Brennan, P.E. Principal Engineer . II .---- MISCELLANEOUS ATTACHMENTS LIST OF BOARD OF COMMISSONERS OF THE HOUSING AUTHORITY SAMPLE PROFORMAS: SOURCES OF FUNDING INCOME LETTER OF INTEREST FROM US BANK --------n--r--- HOUSING AUTHORITY OF JACKSON COUNTY 2251 TABLE ROCK ROAD MEDFORD OR 97501 PHfTDD (541) 779-5785 FAX (541) 857-1118/ FAX 779-4656 Name and Contact Info Title and Business Info Date Expiration Appointed Buntin, Terry President, Buntin Construction 07 -29-99 2009 572 Parsons Dr., Ste. 100 HAJC Commissioner Medford, OR 97504 Office: 776-0032 terry@buntinconstruction.com Jarvis, Darrel R. Attorney at Law 02-23-00 2010 823 Alder Creek Drive Medford, OR 97504 HAJC Commissioner Bus: 541 772 1977 diarvis@medfordlaw.net Agreste, Norice Resident Board Member 2249 Table Rock Road #16 HAJC Commissioner 05-23-07 2013 Medford, OR 97501 Middendorff, Joan 1252 Valley View Rd 2012 Medford, OR 97504 Retired from Real Estate 07 -03-02 Home: 779-5699 HAJC Commissioner Cell: 890-7734 (use home number) icdorff@mindsprinq.com Statler, John 1120 Niantic Street Medford City Council Member Medford, OR 97501 Home: 541 770 5524 HAJC Chairman 05-11-05 2010 John@SvstemSolver.com Williams, Ken Downtown Medford Branch Premier West Bank VP, Sr. Commercial Loan 300 E. Main Street Officer 06-18-03 2013 Medford. OR 97501 HAJC Vice-Chairman Bus: 541 282 5266 ke_n: williams@premi~rwestbank_. cPr:!} C:\Documents and Setlings\belly\Local Settings\Temporary Internet Files\OLK5\BOARD CONTACT INFO-OCT2008 1.doc -CLH 11I- P',~~l~~LN'~'~'~:l Ashland SOURCES OF FUNDING Date: 10/17/08 RESIDENTIAL "H.~~r:'H~~'~~' S().~~.~.e. \HOME! ~ Match i , . .... ....lJ~.~~~.k.}!. ............._.......1......................._...__..:. . H...I i ! : C()~..~.i~!e.~ "H' i c?.~,~!t.~~~all. .....T~~~':l~i"'~,. ..........H ..HH.....,......_.....,. !"HH....."...,......,. ..,.., HH'......I"..,...... H oHcsH'GRANTsHlf'EQUiTY L1HTC Equity HoriifE'--"" "" '" ".,. Trus"fFund' . .u............_...__... ... u.., ......... ......__.. ....... HELP Afcohoi--&...bru~g.....'Free...~~~foiisln-g--... ,1" .. .. .......n.._.__..... . ..,..l::...,.. ~T:W:~~!~~r.i~~~I~~..~.~~9.f~fn ...".H...'.... ...... .,'...w,.._. .~~~~E~~=~~~:.~.:.-.~.~_~-.~:~L:-~I~.: . ....................... ...... . 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"........~. ........_...._ .'..".".. '.IH.............~1.?.!Qq2LH ......n .........__......... .~.~g,g9gL. 8-Nov N6N~bHCS LOANS , , , . , , .........................................".....__..A.._ i i . . ..."',....... ~ .......... ! U S Bank ... 2,700,0001 Oct -09 AFi"p[fc"ANT ....C.ONTRIBUTIONS Cash P~f~r~~g.Q~y~l<?pr!l~lIt Fee . ... ........::..,.......H .."8.$.4.'~j'?~]'H 350,009~ Oct-09 ofHe'R:' ;,.... , Business "EnergyTax 'C'redits"(BEfc}'" .,.. ." C'a~Fff9\Y.JS.li~i.6iiR~h~~'''''''' . ..,......",'. 'J',' .,"" 3:g',:999! ' Jun-10 SUBTOTALS $0 +. ..... , ,,$.9...; , ~11 ,~~~~?08 $278,~21 TOTAL'FUND SOURCES .,.'" 'H "'HHH $'11,388,508 : . , Surpl~;s o'r ~~p ."" ".-T(Noie:'To"tal'F\Jildsources rnustmalCh';'iTotai ...,......! ' ," . , [pr()j~c.tq~.st" from Use~ of F~~~i~g.paQ~J . ......... . " .. , .~ . ,... ... ...... . ........ . , , ., ... ....... Other HCS non-equity sources: , "",.. 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I\.) o (.0.) o --- ~---rr--I [!E3~!!~~, Commercial Real Estate Community Lending 111 SW Fifth Avenuel Suite 700 Portland, OR 97204 October 16t 2008 Betty McRoberts Director of Development HOUSING AUTHORITY OF JACKSON COUNTY 2251 Table Rock Road Medford, OR 97501 Re: Proposed Ashland Site GO-Unit Multi-family Housing Project Ashland, Oregon Dear Ms. McRoberts: Thank you for considering US Bank as your lender for your proposed 60-unit multi- family affordable housing project in Ashland, Oregon. We are definitely interested in pursuing this new opportunity with the Housing Authority of Jackson County. We very much enjoyed working with you and your team on our last project, Rogue River Estates, and look forward to continuing to serve your affordable project financing needs. Si ncerely, ~v1~ David A. Castricano Senior Vice President and Oregon Market Manager DAC/daf --,rT .-- . '''''''D D,. ",.....J"'.\':~'c;,rl:.". . l.f:;':\~-:l;"<4't.. '** ~v- '~~~. \' v~ () OCT 11 2008 CX'iI~;;;'~;<~~:' ,y City of Ashland 2008 CDBG RFP Submitted By: Pathway Enterprises, Inc. TrT- .,.., CITY OF ASHLAND 2008 Program Year Community Development Block Grant (CDBG) Application These completed Sheets shall be Included as the first pages on all submittals. I. APPLICANT INFORMATION Applicant OrganizatIon Name: Pathway Enterprises, Inc. Exe~utlve Director'. Name(s): Rebecca Si.mpson, CEO Board Member Names (attach separate sheet) See attached' Applic.ant Mailing Address: 655 W~shington Street Ashland, OR 97520 Applicant Street Address: 655 Washington Street Ashland, OR 97520 IRS Classification: 50 1 '- c) (3 ) Federal Tax 10#: 93-0 8 914 3 3 Mission Statement: (may be attached) Serving people with disabilities; Sharing a vision of justice, respect .and community; Providing support and services that enhance the quality of life; Empowering people to experience dignity, purpose, and meaning, and Committing to professional standards of excellence. II ,.-- II. CONTACT PERSON (designate a contact person who is familiar with the project) Name: Rebecca Simpson Title: CEO Phone Number: Fax Number: E~mail Address: 541-488-1536 541-488-5948 bsimps_on@pathway-i-nc.org III. PROJECT INFORMATION SUMMARY Project Name or Title: Special Populations-Goal 6 Expected Completion Date: Apr il 30, 2009 Requested COSG Funds: $ $ $ 45,618 None Funds from Other Sources: Total Project Cost: 51,353 Ir, 2) A project summary including a brief description, project background and a list of project objectives. Brief Description Pathway Enterprises, Inc. proposes to use this grant to encourage transitional and supportive housing services to adults with developmental disabilities (special needs population) who have extremely low - and low-income. Project Background Pathway Enterprises, Inc. has a proud history of delivering support services to the citizens of Ashland since 1986. Primarily, PEl provides services to adults with developmental disabilities by offering supported housing, community recreation, social! cultural inclusion and employment opportunities that promote living, working and recreating as independently as possible. Many of the individuals who receive support services through PEl have expressed the desire to live more independently than their current group home living. Because our mission and values reflect our purpose to continually enhance, support and honor people with disabilities, we intend to design housing appropriate to their skills, abilities, and support needs by transitioning five (5) individuals into a supported living model of service delivery. Project Objectives 1) PEl will recruit, hire and train three (3) Community Living Specialists by January 31,2009 2) PEl staff, in conjunction with the individuals served, will identify, plan and transition five (5) supported individuals from their current group home to a supported living model of service delivery (apartment or other identified housing arrangement) by April 30, 2009. -------.r --. --- 3) Property and Project Information Not Applicable to this request -------IT-T- ----- 4) Briefly describe the services to be provided, if any, and describe the eligible target population receiving direct benefit from these services (low-income, homeless, special needs). Services To Be Provided Five (5) individuals receiving services will, in conjunction with their service planning team, identify their wants, needs and abilities for purposes of a thoughtful and planfull transition from their group home living to a supported apartment (or other identified housing) that will enhance their independence and self worth. Staff will assist the individuals served by this project through systems that ensure PEl is meeting their support needs as well as enhancing their independence and self worth. These systems include, but are not limited to the following services: · Functional Assessment (daily living skills) o Housekeeping o Laundry o Menu planning, shopping and meal preparation . Risk and Safety Assessment . Benefits Review . Environmental Analysis . Budget / Money Skills Assessment and Review · Transportation Assessment . Medication Management · Medical Providers (appointments, follow up, etc) . Recreational and Cultural Desires PEl's individualized service delivery system ensures specific skills are identified (through the assessment process noted above), taught, tracked, quantified, reported and celebrated. Eligible Target Population Receiving Direct Benefit From These Services All individuals served by this project are identified as low-income/ special needs. --~TOI 5) A work program and time line including a complete list of tasks with estimated start and completion of task (please complete attached Form A - Project Schedule). Work Program and Time Line (See Attachment A) 1) Upon grant notification, PEl's Human Resource Director will begin recruitment for three (3) Community Living Specialists. Time Line: Begin recruitment and hiring process on or before December 31, 2008. 2) New staff will receive PEl core competency and regulatory training in conjunction with the OAR's (Oregon Administrative Rules). Time Line: Upon hire and no later than March 31, 2009. 3) Staffwill complete assessments and individualized planning will identify specific housing options. Time Line: After training is complete and no later than April 1, 2009. 4) Housing options are presented to the individual and their team and a decision is made. Time lines for moving are identified by the individual and their team. Time Line: No later than April 30, 2009. -----11,- 6) Financial Information Detailed Financial Description of the Proposed Project (See Attachments, Form B and C) Wages for three (3) full time staff will provide the services described in the project. Staff will receive benefits as described in the Employee Handbook. Wages and benefits will be administered by the Finance and Human Resource Staff. Materials and Supplies Supplied by PEl. Marketing! Outreach Recruitment ads for staff: Approximately $100.00 per day for 15 days = $1500.00 ( Program Administration Costs (See Attachments B and C) Total Project Cost (See Attachments B and C) Other Sources of Income PEl will receive DD54 County Funds to pay for direct client services neede<fbeyond the scope of this project. Clarification: The county foods do not provide funding to ensure staff training and planning or recruitment as identified in this project. They provide minimal monies to PEl for direct services. a) Finaneial Assumptions The wages for support staff may increase due to Oregon's Minimum Wage Increase in January 2009. b) PEl will not receive funding from other sources for this proj ect (other than County). c) Property tax exemption will NOT be requested for this project. d) PEl may apply for 2009 CnBO monies, requesting additional support for supported employment efforts. ~T-- 7) Eligibility for Federal Funding Will any of the following activities be part of the proposed project? Property Acquisition No New Construction No Removal of Architectural Barriers No Rehabilitation Costs No Development Costs No Client Services Yes Specification Preparation No Relocation Benefits No Appraisal No General Information a) Is the proposed project within the Ashland City limits? If not, explain. Yes, the project is administered and executed within Ashland City limits. There are, however, individuals served by PEl who reside in Medford and may benefit from this project. b) Specify the proposed tenant of client income level. All individuals who will benefit from this project are well below the Extremely Low Income Level as noted on page 10 of this proposaL c) Describe any financial or legal commitments made to the project. PEl will match 15% of the total project funds. d) Housing Development, Land Acquisition, or Rehabilitaion Specific Information. Will permanent housing units be converted or demolished? No. e) Is the proposed housing site located in a 100 year flood plain? No f) Has a levell environmental assessment been done for the site? N/A g) Is the proposed housing site located by a major arterial road or railroad? N/A h) Is the site located by and aboveground flammable tank? N/A i) Will the project impact historic features? No --------rr--,--- . - 8) Briefly describe the agency's mission and service history. The City may request copies of the agency's financial audit or review for the last two years prior to contract signing in order to determine agency's capability to successfully complete the project. Agency's Mission In summary, Pathway's mission is to embrace the individuality of those served, enhance theil opportunities for independence and create a richer community in the process (see attached formal Mission Statement). In addition to Pathway's mission statement, support services are based on a solid foundation of Core Values. Pathway's staff and board of director's created and adopted these Core Values to ensure employees are providing support services designed specifically to the needs, abilities and desires of the individuals served. In addition, all employees, individuals served and community partners are treated with dignity and respect. Pathway values effective communication, teamwork and a positive attitude in all venues of service delivery. Service History Pathway Enterprises, Inc. was founded in 1985 in order to provide homes and employment opportunities for residents of Fairview Training Center, Oregon State's Institution for individuals who are developmentally disabled. Pathway opened five residential (group) homes by 1989, providing services to twenty-five (25) individuals. Each home provides support services to five (5) individuals who require varying degrees of support. Many of these individuals are medically fragile, have augmented disabilities due to aging, and other disabilities including mental illness and/or a physical disability. In addition to providing residential and community integration services, Pathway is committed to ensuring supported employment opportunities for the individuals served, including partner agency's supported employees. Pathway currently provides support services to eight (8) individuals who are employed in local businesses as well as seven (7) individuals in contracted services (SOU dish room and custodial). Pathway staff are committed to excellence and are excited about the future for those we serve. II I . 9) Will the project promote self-sufficiency for extremely low, low-moderate income families, or individuals with special needs? All individuals targeted in this proposal meet the federal guideline for extremely low income and are also developmentally disabled. The project will promote self-sufficiency by ensuring trained staff follow the individual plan for support and create an environment of learning and developing relationships outside of paid staff. 10) Please identify how your project benefits extremely low-income individuals I individuals with special needs. Benefits of the Program All the individuals identified by this project are extremely low income and are diagnosed with a developmental disability. These individuals currently reside in congregate living (residentiaI/ group home housing) with four (4) other individuals. This project will ensure the individuals who desire supported living services (apartment / other housing) receive the support and guidance to reach their goals. The identified individuals will be able to reap the benefits that a typical renter has, including, but certainly not limited to; keeping and decorating their home the way they would like, inviting friends and family for visits, having an animal to care for, developing neighborly relationships, watching t.v. shows they like and listening to music they love. They can dance around their living room and make spaghetti for dinner. In addition to the above benefits, individuals who move from congregate living to a more independent arrangement are more apt to feel better about themselves; taking pride in their homes, appearance, attitude, etc. Historically, people who have more power and control in their lives are happier and more productive individuals. a) N/ A b) For proposed projects serving a target population, provide the following data, including document sources of information for statistics. Target Population People who are extremely low income and diagnosed with a developmental disability. Number of low-income individuals in target population to be served on an annual basis. Five Total number of individuals in target population to be served on an annual basis. Five Percent low I moderate income. 100% extremely low, low- income. -------,.,--,-- 11) Briefly describe how your proposal will ensure that moderate-income individuals do not benefit to the exclusion of extremely low-income individuals. The individuals served are extremely low income. 12) Indicate if you expect the project to cause low and mod-income housing to be demolished or converted to another use. N/A 13) Project Feasibility Please describe your readiness to proceed concerning whether land use issues have been resolved and whether your organization has the administrative capacity to complete the proposed project. N/ A regarding procurement of property. PEl has the capacity to proceed with the project as written. PEl's administrative infrastructure, including Finance, Human Resource and Administrative staffhave the capacity to complete the requirements set forth in this proposal as evidenced by historical information including: 1. Adherence to federal, state and county regulations and practices (AbilityOne, Licensing, Contractual, etc.) 2. Successful annual (Isler) fmancial audits. 3. Documented 12 hours of Professional Training for staff 14) Indicate whether the project will have any negative impacts on historic / significant properties I environment. N/A 15) Letters of Support Are Attached. 16) CnBG Application Checklist (pages 23,24). See Attached Forms A, B, & C. II I Attachments -..----~--Tr T Form A-1 To be completed for Development or Rehabilitation Proposals N A N/A local state federal Non- overnment other Construction Certificate of Occu anc Please provide yourbest (realistic) date estimates regali ing the project schedule -----~-~---Ir r I -- ---'-'" -----......-.- .....- -.--..---- ----____.__.1-___.____ .~ocial Services Proposals I Form A..2 -- ~---_.- - _.__._~-----------+----"----- I - ----.---.-.-.. Completion Date i-....--.- Activity Start Date -- 1--------.... -- - ------.-.--.- .-.... ..-.....---.____...._-1-...--__...__ H ire Person nef 12/1/2008 1/31/2009L_.____ . '-- 1---.. __0_... Train Personnel 12/15/2008 3/31/20091 ~'In~i~tion of Svsl Assessme!liS-:--- ...--....---...- 2/1/2009 1--' ----....... --4/1/2009-......_.._-- .- .---..-.... Housing Optionos Identified 2/15/2009 4/1/2009 ----..-- --rs"lndividuafs Transitioned to SL -------- 2/15/2009 '-'4/30/2009 ------------------------ If-T Form B-1 To be completed for Development or Rehabilitation Proposals Housing Proposals Uses of Funding N/A "Tr-l' w;~~::';':'g:1~IJ.l~u;f,~Q~t$I~~,~;,i::\(ri:&~~k1~~\!ti: Land Improvements Liens and other Taxes Closing costs Off-Site costs Other SUBTOTAL ~Jig~II.I~f~~1,jf.lt. .,' Land Use Approvals Building Permits/fees (Include Engineering and Community Development Fees) System Development Charges SDCs Relocation Costs Environmental Report I Lead Based Paint Clearance Soils Report Survey Marketing Insurance Site Clearance and Grading Pre-Development Conceptual Plannin Other N/A N A N/A N A N/A N/A N A --~- -Tr T Form B~2 To be completed for Social Service Proposals Wages (of personal $44,118 100% N/A providing direct client services) Materials/Supplies None None Marketing/Outreach $ 1,500 100% Program Administration COBG Funds Includes overhead and general are not staffing necessary to administer the $ 5,735 available for program (accounting, management, grant administration) but that does program not provide direct benefits to the client. administration Total Project Cost $51,353 $45,618 III Form C SOURCE(S) OF FUNDS FOR OPERATING EXPENSES WORKSHEET Completeness of this worksheet establishes the capacity of the organization to sustain the operations of the program(s). Federal Grants None State Grants None Local Grants None Non Governmental None Grants Donations/Gifts None Applicant None Contribution Program Income $138,510 Loans None Other (specify) None Other (specify) None Please provide a description the timeline of loan and grant application dates as related to the proposed project. Specifically t for any tentative funding sources please provide application dates, award dates and funding availability dates. --~-~II-T Form 0 DISCLOSURE OF INTERESTS To assist the City of Ashland in determining whether there may be a potential conflict of interest related to the expenditure of Community Development Block Grant funds we request the following information be provided by applicants: ORGANIZATION NAME: Pathway Enterprises, Inc. Organization is: 1. Corporation ( ) 2. Non~Profit 501 C3 ~) 3. Partnership ( ) 4. Sole Owner ( ) 5. Association ( ) 6. Other ( ) DISCLOSURE QUESTIONS If additional space is necessary, please attach a separate sheet. 1. State the names of each "employee" of the City of Ashland having a financial or personal interest in the above mentioned "organization" or project proposed. Name, Job Title and City Department None 2. State the name(s) of any current or prior elected or appointed "official", of the City of Ashland having a potential "financial interest" in the organization or project. Namemtle None 3. Provide the names of each "board member" of the Organization seeking COBG funding Name Board, Commission, or Committee {may be attached as a separate Sheet} 1 2 3 4 5 6 7 8 9 10 11 12 additional See attach.ed If the applicant has provided names in question 1 or 2, please provide details regarding any known potential conflicts of interest in an attached narrative. --------11,---- Pathway Enterprises, Inc. Board of Directors 2008 Mr. Jon Iverson Mr. Michael Hancock Ms. Krista Bolf Mr. Brad Webster Ms. Sandra Crews ----------------rr-T Disclosure of a Possible Conflict of Interest Pathway Enterprises, Inc., provides contracted custodial services to the City of Ashland in the following buildings: Police Department Municipal Court City Hall Street Shop Svs Center The Grove Community Development October 17 I 2008 City of Ashland Community Development Block Grant Letter of Support To Whom It May Concern: Pathway Enterprises has the capacity to administer and complete the grant as written; providing three additional staff to ensure the individuals served have the opportunities to move from residential (supported housing) to supported apartments (or other housing options). This transition will create the opportunity for the individuals involved to exercise more choice and control over their lives and experience the freedom of living where and with whom they choose-something that most of us take for granted. Pathway's services are an integral part of Ashland's diverse community, assisting people with disabilities to engage in the same housing, employment and activity options that enrich all of our lives. Thank you for considering this application. Please call me directly if you have additional questions. Sincerely, Roger Hassenpflug President and CEO --------,.,-T In order to determine compliance with all applicable HUD regulations and to help to ensure that projects will be eligible for CDSG funding, the City of Ashland will need to address all HUD requirements. The purpose of this checklist is to point out areas where potential problems could arise. Obviously, this is a comprehensive list, which must evaluate a wide array of different kinds of proposals. Therefore, not every item will be applicable to every project. Please fill it out entirely indicating all items which are not applicable and include it as part of your proposal application. x x x x x 1. Has a location for the project been selected? 2. Is the proposed project within the Ashland City limits? 3. Does the proposed project meet local zoning and land use laws? 4. Are any land use permits such as a Site Review, partition, annexation or Conditional Use Permit ra uired? 5. Have these approvals been obtained? 6. Does the project comply with current building code re uirements? 7. Does the project meet handicapped accessibility requirements? x x x x x x x IIT-- :~~~:81iIrlil~ Is the project located in the 1 OO-year floodplain? Is a wetland located on the project site? 3. Has any environmental contamination been identified on the ro.ect site? 4. Has asbestos been identified on the project site? 5. If project involves an exiting structure, was it built 1978 or earlier? If ear built is known, lease s ecif . 6. Is the proposed project located on a major arterial or near the railroad? 7. Is the proposed project located adjacent to an above round flammable stora e tank? 8. Does the proposed project involve a structure that is 50 ears or older? 9. Will the applicant complete a Phase I environmental review u on receivin a CDSG award? x x x x x x x x x 1. Does the project involve construction over $2,000 in cost? 2. Will the project trigger Davis-Bacon wage re uirements? 3. Will the project trigger BOll wage requirements? 4. Does the project involve over $15,000 in City awarded rants or contracts? x x x 1. Will tenants be displaced by the project? 2. Will a business be displaced by the project? 3. Will housing units be demolished or converted? x x x 1. Does the applicant own the property by fee simple title? 2. Are taxes on the property current? 3. Is insurance current? 4. What is the current debt against the property? 5. What is the current use of the property? 6. Has an appraisal on the property been conducted? If eSt what is the assessed value of the ra ert ? x x x x ~- t:l jeF" .T It::O i~.:.>:....<-\;, ~ ,~.....:..~ '" ~~",,:.~::: :-.'.- OCT 1 7 2008 :S;.'; ,~ "..< ~~ . , a:~n:;h_J~i;':~:\. -t)qi:~-j'::~,"I~l i ! .5't S\\P~ttNe Housing and Coronlunity Outreach Community Development.Block Grant Application October, 2008 -----,,-T-~ CITY OF ASHLAND 2008 Program Year Community Development Block Grant (CDBG) Application These completed Sheets shall be included as the first pages on all submittals. I. APPLICANT INFORMATION Applicant Organization Name: Ashland Supportive Housing and Community Outreach Executive Director's Name(s): L. Sue Crader Board Member Names (attach separate sheet) Applicant Mailing Address: P.o. Box 3536 Ashland, Oregon 97520 Applicant Street Address: 693B, Washington Street Ashland, Oregon 97520 IRS Classification: 501 (c) (3) Private Non-Profit charitable organization Federal Tax 10#: 93-0805586 Mission Statement: (may be attached) The ASH Board and Staff support persons with disabilities to live a rich, fulfilling and productive life with dignity and respect. II. CONTACT PERSON (designate a contact person who is familiar with the project) Name: Sue Crader Title: Executive Director Phone Number: (541) 488-2870 Fax Number: (541) 488-2682 E-mail Address: ashinc<<uashlandoreaon.ora -rIT. III. PROJECT INFORMATION SUMMARY Project Name or Title: ~ambridge Street Home for Medically Fragile Individuals Expected Completion Date: May 2009 Requested COSG Funds: Funds from Other Sources: $ 345,000 $ 40,000 $ 385,000 Total Project Cost: II I ---- Application Contents Provide the information listed below numbered and in the order listed so that we can find the required information easily and award full credit for your responses. 1) Complete Application Form (see page 16). 2) A project summary including a brief description, project background and a list of project objectives Ashland Supportive Housing and Community Outreach (ASH) has provided housing and support services for 15 individuals with developmental and other disabilities since 1982. Most of our residents were accepted into the program at its inception from Fairview Training Center. We provide 24 hour comprehensive services, including assistance with activities of daily living, personal care needs, community inclusion, medication dispensing and monitoring, and behavior support. All of our residents are now aging and beginning to experience increasing medical conditions, mobility issues, and a need for enhanced care. ASH has responded to these increasing needs by developing two single-level, five bedroom homes from one ten bed home and replacing a five bedroom two story home with a single-level, five bedroom home. We remodeled all three homes to provide ramping, accessible bathrooms and showers, sheltered outdoor living space, and secure grounds. ASH undertook these projects using savings, community donations, and the sale of property that had gained in value over the years. In addition to our residential services, ASH has provided support services to individuals with developmental disabilities and significant medical needs who in live local nursing homes until this service was discontinued by the State of Oregon in December, 2007. ASH Board and staff have the goal of providing life long services for people with disabilities that allow them to remain in their community and with their social support systems. We feel that our natural progression of services calls for a home for medically . fragile individuals which would provide services for two of our former nursing home clients, and also for our current residents as they age and need enhanced care. As our current residents age out of the placement they have now, this would free up space for younger community members. In response to the RFP issued by the City of Ashland for Community Development Block Grant funds, ASH is prepared to move forward with this application. We have a site selected, construction bids in development, and the experience and expertise to develop quality programming. The Director of Jackson County Health and Human Services, Mark Orndoff, and the Program Manager for Developmental Disability Services, Tony Mendenhall, have both formally given us their support. 3 --------~Ir~T In conjunction with this application for COSG funds, ASH is also applying for supplemental funding from the "On the Move" (OTM) program through the Seniors and People with Disabilities Division of the Department of Human Services. This program was created to help develop community placements for people with disabilities currently residing in nursing homes. Two of our former clients are eligible for this program. Our specific funding request from aTM is to create two accessible bedrooms and one accessible "wet" room shower from the existing garage. We also will be applying for state 0057 startup funds that will assist with furniture and fixtures, the initial phase of hiring and training new staff, and purchase of food and household goods. Two other state funded programs to facilitate new housing for this population are in their preliminary stages of implementation: the Comp 300 program through the Department of Human Services, and, the Growing Resources in Oregon through the Oregon Technical Assistance Corporation (GROIOTAC). Project objectives include: 1. Provide quality housing and support services tailored to the individual needs and preferences of four developmentally disabled adults with significant medical needs, at least two of whom currently reside in a local nursing home. 2. Purchase an existing single level residential home in Ashland. 3. Remodel the home to create four bedrooms accessible by wheelchair and able to accommodate hospital beds, lifts, and other medical equipment. 4. Remove architectural barriers to provide a large living space that can accommodate wheelchairs and larger pieces of medical equipment. 5. Provide concrete decks and ramps both front and back for accessibility and to provide sheltered outdoor living space while maintaining less than 45% impervious surface for the lot. 6. Create one accessible "wet" type shower room and one accessible bathroom with a walk-in bathtub and ceiling lift. 7. Replace current furnace, hot water heater, and windows with energy efficient models through recommendations from the Earth Advantage program for the City of Ashland. 3) Property and Project Information This project answers a need for services by an extremely low..income group of disabled adults. These individuals have severe mobility issues, need round..the..clock care, and have medical issues that require monitoring by a registered nurse. We hope to provide quality dignified care for four individuals in a group home setting. This home is a single unit with four bedrooms, two bathrooms, asingle kitchen, and laundry area. Staff will rotate in such a way as to provide two caregivers at any given time. We have a home chosen and have negotiated a purchase price pending the award of funding and environmental review, with no legal obligation to purchase. The home is in the Quiet Village Development which is the same area as our other three group homes. We have completed a survey of the neighborhood and have received no objections to our locating there. 4 a) Properly location relative to jobs, schools, transportation, shopping and services: The home at 850 Cambridge Street is not within walking distance to services. We do not anticipate a problem with this as our residents will require transportation to reach services. A.S.H. owns handicap accessible vehicles for such needs. b) Total floor area of buildings, and size of land site: Current home is 1182 sq. ft. After remodel of the garage area into living space, the home will be 1700 sq. ft. The lot is 10,454 sq. ft. or 0.24 acres and is of a rectangular shape. c) Types of residential units, number of each type unit, and total number of bedrooms: Single family dwelling with four bedrooms plus manager office. Bedrooms exceed the sizes required by Oregon State Developmentally Disabled licensing. d) Number of extremely -low income units, low-, and moderate-income units proposed: One home is being developed. The total number of extremely-low income individuals s~rved is four. e) Number of units accessible to the disabled: The home will be totally handicap accessible, except for the House Manager's office which will not contain client personal items of any kind. 1) Square footage of units and description of amenities such as private balconies or storage areas: Each bedroom will contain a private closet for resident's personal items. Residents may keep personal entertainment items and equipment in their rooms. Bedrooms average 120 sq. ft. with none smaller than 100 sq. ft. g) Square footage of common areas: The Great Room common area is 520 sq. ft. h) Square footage of commercial space: None i) Year property was built 1972 j) Describe condition of any existing housing proposed for acquisition and any alterations planned. Briefly discuss the total cost of the proposal relative to new construction: The house we plan to buy and remodel is in good condition. The lot is mostly level and contains mature landscaping with a few ornamental trees. The major portion of requested funds would be to purchase the home at $300,000. The second portion of requested funds, a total of $45,000 would cover making the home ADA compliant. We plan to create a large bathroom with a roll-in shower. We will widen all doorways and lower window sills for emergency egress. We will also install a fire suppression system, which requires the installation of a 1" water line to connect to city lines. Concrete decking and walkways front, back and side will provide accessibility. Total funds needed for the rehabilitation of the property comes to approximately $85,183; the amount not covered by COSG funds will be covered by OTM, 0057 state startup funds, Comp 300, GRO/OT AC funds, and community donations. ASH is prepared to fill in any funding gaps. 5 --~-III- The cost of new construction has been estimated at $200 per square foot. This project will result in a home of 1700 sq. ft. New construction would cost $340,000 for the basic structure plus the cost of land and other special amenities. k) If the project involves rehabilitation, attach a description of the work to be completed: Requested through this grant: · Create handicapped accessible bathroom with walk-in tub and ceiling lift · Widen bedroom doors · Demolish one small bathroom and remove shower to remove barrier · Install hard-wired smoke alarms · Add Fire Suppression system · Increase water service to 1" pipe to accommodate fire suppression system · Replace windows to lower sill height for fire egress and install energy efficient windows per recommendation by the Earth Advantage program · Concrete decking, ramps and walkways w/railings front, side and back: includes back patio area · Relocate hot water heater and gas furnace to outside of house and replace with energy efficient heat pump and hot water heater, models per recommendation by the Earth Advantage program · Replace flooring with commercial grade vinyl Covered by other sources: · Garage conversion to include 2 additional bedrooms, bathroom with roll-in shower, laundry area. I) Describe the target population. Include the suitability of the property for the target population, the tenant selection process, brief description of any residential services and the resources identified to fund the services: Target population is Developmentally Disabled adults who are open for services with Jackson County Developmental Disability Services or Senior and Disabled Services. By definition, they are extremely-low income. This home will be designed specifically for medically fragile individuals. We have two individuals identified who currently live in nursing homes. We will provide comprehensive care including consultation from nursing staff. We need the funds to prepare the home to be suitable for these residents (as described in j. and k. above). Residents will be selected through Jackson County Developmental Disability Services and the On the Move program who will also supervise these client cases. They select all referrals for vacancies in group homes for developmentally disabled adults in Jackson County. ASH screens each referral for suitability of match to existing clientele and ability to provide appropriate care. Our operating budget will come from the Oregon Department of Human Services, which provides funding for our existing 6 II I programs and under whom we are currently licensed as a provider of 24 hour comprehensive services. m) Indicate how many years the property will remain affordable and the mechanism that will be used to ensure the affordability period: This is a sustainable program. Our current program has been in existence since 1982. Our residents are completely unable to care for themselves and are considered the most vulnerable of Oregon's citizens. Funding for their care is not considered an optional part of the state budget. We have a great deal of experience in weathering the kinds of funding restrictions that come in a business which is government funded. We are still open today, and eager to expand so that we can supply services for this population as they age. The need for this program will not end, neither will the funding. Thus we believe that this program will most likely outlive this building. 4) Briefly describe the services to be provided, and describe the eligible target population receiving direct benefit from these services. Ashland Supportive Housing and Community Outreach supplies residential services to developmentally disabled adults. This has been the core of our programming since we opened our first group home in Ashland in 1982. This new home would supply intensive personal care 24 hours a day, 7 days a week to medically fragile clients with developmental disabilities. Medically fragile individuals have mobility issues and other medical conditions which make it difficult or impossible to take care of basic daily activities like bathing, dressing, eating, moving about their homes, self medicating, or exiting in case of an emergency. All are extremely-low income. None are able to work. This home will be specially designed to serve this population. 5) A work program and time line including a complete list of tasks with estimated start and completion of each task. 11/18/2008... Grant awarded 11/19/2008... Begin applications for supplementary funds from identified sources 01/02/2009... Receive funding 01/03/2009 - Close on house 01/06/2009... House inspections / repairs 01/09/2009 through 03/31/3009 - Remodel 01/31/2009 through 03/31/2009 - Resident referrals and selection 03/31/2009... Hire house manager 03/15/2009 - Begin Hiring and Training direct care staff 04/15/2009 - Secure occupancy permit 04/22/2009 - Complete licensing inspections 05/01/2009... Open for service 6) Financial Information A budget describing total cost, cost per task, existing (secured) project funds and unfunded costs. Identify any and all source(s) of funding. This would include other Federal and State grants and loans, monetary donations, in-kind contributions, 7 II I - volunteer labor, donation of materials and supplies, etc. In addition to addressing the questions below please complete attached Form B - Uses of Funding & Form C - Sources of Funding. Provide a detailed financial description of the proposed project, including Rent Schedule, Sources/Uses of Funding and Operating Budget Income/Expense, and utility allowances a) Describe the financial assumptions used to develop the operating budget. Include projected rent increases, other sources of income for operation and maintenance expenses, and inflationary factors. For social service award requests please include financial assumptions relating to increases in wages, materials and overhead, or other costs associated with the proposed activity. ASH is requesting a total of $345,000 in CDBG funds for this project. Of this, $300,000 will be used for property acquisition and $45,000 for renovation for ADA accessibility. Please see attached estimate provided. Of the renovation costs, $22,235 will provide concrete decks and ramps with handrails front and back; $22,765 will provide for a fire suppression system, including installation of a 1 "water line to connect to city services; enlargement of a bathroom to meet ADA requirements and installation of a walk-in bathtub; removal of a small bathroom in the middle of the house to provide for hall and bedroom accessibility; lowering window sills for fire egress and installation of energy efficient windows; replacement of carpet with vinyl flooring for ease of wheelchair use; and, relocation of heat source to provide room for equipment and wheelchairs to maneuver and replacement of existing gas furnace with electric heat pump. COBG funds will cover all but $3,575 of remodeling costs within the existing square footage. The remaining costs and $36,608 for the garage conversion will be covered by a combination of funds from the OTM program, Oregon Comp 300 housing development program, and the Growing Resources in Oregon program through the Oregon Technical Assistance Corporation. None of the aforementioned programs will provide funding commitment without a majority of the project funds already being secured; most are also tied to specific client needs. ASH is prepared to fill in any funding gaps. Once the residence is secured, remodeled, and ready for the hiring of staff, state 0057 startup funds may be accessed to provide initial hiring costs, training, furniture, and other household goods. After residents move in, the state provides ongoing monthly payments for services provided. The monthly amount varies according to client need, but will be sufficient to maintain staffing and operations. In addition, residents pay room and board at a rate set by the State of Oregon. Currently, this is $494.70/month. b) Attach letters of funding commitment from other sources, if available. Other funding commitment cannot be made until the property is secured. Some sources tie their funding to specific client needs. Please see the attached letter of support provided by Tony Mendenhall, DO program Manager for Jackson County. ASH is prepared to fill in any funding gaps. 8 II .----- c) Will a property tax exemption be requested for the project? If so, what is the estimated dollar value of the tax exemption over the twenty-year period? ASH will request a property tax exemption. The estimated dollar value of this exemption over a twenty year period, based on current assessment is $39,840. 7. Eligibility for Federal Funding Will any of the following activities be part of the proposed project? · Property Acquisition yes · New Construction (non..residentiaf) no · Removal of Architectural Barriers yes · Rehabilitation Costs yes · Development Costs no · CfientServices no · Specification Preparation (Construction/Rehab) no · Relocation Benefits (if required) no · Appraisals (for acquisitions) no The proposed project will involve use of federal funds. Attached are excerpts from the Department of Human Services Oregon Administrative Rules (OAR), Division for Seniors and People with Disabilities. These excerpts cover the condition of the physical plant. The rules require that we satisfy local building codes. Additionally, they designate sizes of bedrooms, and size and placement of window openings for emergency egress. We will satisfy these requirements as part of our remodel project. The state will physically inspect the property for adherence to the pertinent OAR's prior to issuing a license, releasing funds, or allowing clients to move in. This project will involve property acquisition; rehabilitation costs; and removal of architectural barriers as referenced above. We are making arrangements for all of these processes. Federal funding has certain regulatory requirements. The following information is required to determine eligibility for federal funding. General Information a) Is the proposed project within Ashland City limits? Yes. b) Specify the proposed client income level: Clients at this level of disability personally receive $7200 to $10,000 per year. This is no more than 28% of area median income for the Medford-Ashland standard metropolitan statistical area. c) Describe any financial or legal commitments made to the project: None. Housing Development, Land Acquisition, or Rehabilitation Information d) Will permanent housing units be converted or demolished? No. e) Is ,the proposed housing site located in a tOO-year flood plain? No. t) Has a Levett environmental assessment been done for this site? No. 9 ~~-----------rr T- g) Is the proposed housing site located adjacent to a major arterial road or near a railroad? 500 yards from SO Pacific Railroad; 1 mile from Interstate 5. h) Is the proposed site located adjacent to an aboveground flammable storage tank? No. i) Wi/( the proposed project impact historic features? No. 8) Agency Mission Statement and Service History Ashland Supportive Housing and Community Outreach (formerly Advocates for the Severely Handicapped), has been providing services to developmentally disabled adults in Ashland since 1982. Many of our residents came to us from Fairview Training Center in Salem and have been supported by us since 1982. Our mission statement reads: The A.S.H. Board of Directors and staff support persons with disabilities to live a rich, fulfilling and productive life with dignity and respect. We promote individualization of services; choice and independence for our clients; and inclusion in the community. We provide residential services, and we work with Living Opportunities who provide vocational activities for our clients. Our funding comes from Oregon Department of Human Services through Jackson County Developmental Disability Services. Since 2005, we have purchased and rehabilitated three homes in the Quiet Village subdivision as care facilities for developmentally disabled adults. Each house is a residence for 5 adults, several of whom are becoming elderly and more medically fragile. 9) Will the project promote self-sufficiency for extremely low income families, or individuals with special needs? The special needs people who will be served in this group are by nature not self- sufficient. However, they do have needs which are unique to each individual. One of the founding guidelines of Ashland Supportive Housing is the support of individualized services for our residents. In the past, we have made facility adaptations to meet an individual's needs. We expect to do this again for this project. Some or all of our residents will be coming from nursing homes or similar residences where their own unique needs are not being met. It is a high priority of ours to answer those special needs. 10) Identify how the project benefits extremely low income individuals or individuals with special needs. The group home which we plan to rehabilitate from an existing home will serve four developmentally disabled adults, 1000/0 of whom will have extremely low incomes. We expect each resident to be with us permanently. The target population is developmentally disabled adults who are, or who have become medically fragile. 10 -~-..--.----- Possible residents will be referred to us in consultation with Jackson County Developmental Disability Services. OTM, a new program of the Department of Human Services, will also be referring clients to us. This program is designed specifically to help move developmentally disabled adults from nursing homes into the community. We will provide a community destination for these clients. 11) Briefly describe. how your proposal will ensure that moderate-income individuals do not benefit to the exclusion of extremely-low income individuals. Jackson County Developmental Disability Services screens all applicants according to income level. All applicants are recipients of either Social Security, Supplemental Security Income, or both. 12) Indicate if you expect to project to cause low and moderate-income housing to be demolished or converted to another use. At a purchase price of $300,000, this home would not house a low-income family. We propose to change this house from a residence for a moderate-income family to a residence for four extremely low income individuals. 13) Project Feasibility Describe your readiness to proceed concerning whether land use issues have been resolved and whether your organization has the administrative capacity to complete the project proposed. a) Does the applicant have the experience and capacity to complete and/or manage the project proposed? Ashland Supportive Housing has been administering group homes for 26 years. This additional home will require enough staff to cover the home: House Manager, Lead Staff, and 8-10 direct caregivers. All will receive a Living Wage as defined by the City of Ashland. We have current applicants with the capabilities to fill these positions. Additionally, we will need another administrator and a Certified Nurse. We feel qualified to complete the remodel of the home in consultation with our licensing team. We have remodeled three homes for a similar group of clients over the past three years. b) Does the applicant have a purchase option on the property, letter of support from the property owner, or some other assurance that the property is available for acquisition? The building was listed with the Multiple Listing Service until September 29, 2008. An offer to purchase contingent on the award of CDBG funds and the environmental review has been made and accepted, with a promissory note in lieu of earnest money. No legal obligation to purchase has been made. The property is not currently listed for sale. c) Does the project require temporary or permanent relocation? The house is vacant. No one will be displaced. We will be remodeling within the current house footprint. d) Describe relocation strategy for the project. Not applicable. 11 II e) Does the project require land use approvals such as Site Review, Annexation, Zone Change, Minor Land Partition, Demolition, or Conditional Use Permit? No. t) Has a pre-application been completed with the Ashland Planning Department? No. g) What is the condition of any improvements on the property, and what is the expected life of the property? The house was built in 1972, and has been well maintained. We expect the house to last at least 40 more years, and up to 100 years. h) Describe commitment of project funding from other sources. Project funds for supplemental costs are available once the residence has been purchased. Operating expenses at roughly $40,000 per month will come from Medicare through Jackson County Developmental Disability Services. 14) Indicate whether the project will have any negative impacts on historic or architecturally significant properties or on the environment. This property does not have historic significance. The entire subdivision was built 40 years ago from farmland. Our rehabilitation will be restricted to the existing house footprint. Environmental impacts of the remodel will be restricted to disposal of demolition debris at Valley View Transfer Station and clean-up of paint products on site. 15) Please attach any other statistical data, letters of support, applicable experience of the sponsor, and evidence of financial support from other funding sources, or other material you believe will assist the City in its review of your proposal. Please see list of attachments following application 16) COBG Application Checklist (see pages 23-24). Attach Forms A, B, C, & D. 12 II ATTACHMENTS 1) CDBG Application Checklist - 2 pp. 2) Form A-1: Housing Proposals - 1 p. 3) Form B-1: Uses of Funding - 1 p. 4) Form C: Sources of Funding - 1 p. 5) Form 0: Disclosure of Interests 6) . Board of Directors of Ashland Supportive Housing - 1 p. 7) Annual Financial Review - 14pp. 8) Year-End Financial Statement - 1 p. 9) Oregon Administrative Rules - 4pp. (excerpts) 10)Multiple Listing Service Report-1 p. 11)Title Report-12 pp. 12)3-Up Comparison Report - 4 pp. '13)Seller's Property Disclosure - 5 pp. 14}Arm's Length Purchase Agreement - 1 p. 15)Work Estimate - 1 p. 16)Remodel Sketch - 2 pp. 17)Letter of Support - Rep. Peter Buckley 18) Letter of Support - Tony Mendenhall, JC Developmental Disabilities Program Manager " 19)Letter of Support - Rosemary Dunn Dalton, LCSW ---rr-T--- In order to determine compliance with all applicable HUD regulations and to help to ensure that projects will be eligible for COBG funding, the City of Ashland will need to address all HUD requirements. The purpose of this checklist is to point out areas where potential problems could arise. Obviously, this is a comprehensive list, which must evaluate a wide array of different kinds of proposals. Therefore, not every item will be applicable to every project. Please fill it out entirely indicating all items which are not applicable and include it as part of your proposal application. x x x x x X x '~JaB1f: '.,r.. " " ,'.', ~ 1. Has a location for the project been selected? 2. Is the proposed project within the Ashland City limits? 3. Does the proposed project meet local zoning and land use laws? 4. Are any land use permits such as a Site Review, partition, annexation or Conditional Use Permit re uired? 5. Have these approvals been obtained? 6. Does the project comply with current building code ra uirements? 7. Does the project meet handicapped accessibility requirements? Upon project completion x X X x x x x --,,-r --- i{~tr.~lify.Jtq"~mll_il'C~!. ,.' 1. Is the project located in the 1 DO-year floodplain? 2. Is a wetland located on the project site? 3. Has any environmental contamination been identified on the fo'ect site? 4. Has asbestos been identified on the project site? 5. If project involves an exiting structure, was it built 1-978 or earlier? If ear built is known, lease s eci . 6. Is the proposed project located on a major arterial or near the railroad? 7. Is the proposed project located adjacent to an above round flammable stora e tank? 8. Does the proposed project involve a structure that is 50 ears or older? 9, Will the applicant complete a Phase I environmental review u on receivin a COBG award? ....:......::... 1. Does the project involve construction over $2,000 in cost? 2. Will the project trigger Davis-Bacon wage re uirements? 3. Will the project trigger BOLl wage requirements? 4. Does the project involve over $15,000 in City awarded rants or contracts? '. ,.. }.~~~:ll.Di.jjtf:" ':""?"~.'ltc~'::~j 1. Will tenants be displaced by the project? 2. Will a business be displaced by the project? 3. Will housing units be demolished or converted? J] ~~@~ti\;~fJ j:t.f:"W;~ ';~~~ ;~lf.l.r~;{{!.[~?[;~t'i X X X x X 1972 X x X X X X x X X 1. Does the applicant own the property by fee simple title? 2. Are taxes on the property current? 3. Is insurance current? X X X 4. What is the current debt against the property? 5. What is the current use of the property? SR1.75 6. Has an appraisal on the property been conducted? If yes, what is the assessed value of the property? *Market Anal sis attached X ~_~--"nr-~- Form A-1 To be completed for Development or Rehabilitation Proposals o tion 10/9/2009 10/14/2008 Site A uisition 12/21/2008 01/10/2009 Plan Development 10102/2008 01/10/2009 Pre-a Iication N/A land Use Ap roval N/A Construction Plans 1 0/02/2008 01/31/2009 Final Bids 1 0/0212008 01/31/2009 Contractor Selection 1 0/02/2008 01/31/2009 Buildin Permits 11/19/2008 01/31/2009 Local: CDSG 10/02/2008 10/17/2008 State: "On the Move" program 12/01/2008 01/31/2009 for housing rehabilitation; Com 300; DD57 funds federal N/A Non- overnment N/A Other: GRO/OTAC 12/01/2008 01/31/2009 Construction Upon release of funds, 03/31/2009 01/31/2009 Certificate of Occu ancy 03/31/2009 05/01/2009 Please provide your best (realistic) date estimates regarding the project schedule --rr--r - . Form B-1 To be completed for Development or Rehabilitation Proposals Uses of Funding Housing Proposals Land $300,000 $300,000 Improvements $ 85 135 $ 45,000 $ 40,135 Liens and other Taxes $ 1,991 $ 1,991 Closing costs $ 1,647 $ 1,647 Off-Site costs N/A Other SUBTOTAL $388,773 . $345,000 $ 43,773 Land Use Approvals N/A Building Permits/fees $ 1,300 $ 1,300 (Include Engineering and Community Development Fees) System Development Charges To be (SOCs) determined Relocation Costs N/A Environmental Report I Lead $300 $300 Based Paint Clearance Soils Report N/A Survey N/A Marketing N/A Insurance N/A Site Clearance and Grading N/A Pre-Development Conceptual N/A Plannin Other N/A r7'~~~'(~n')'X~~T.;'""s:;:,,~~(~~~,,~:q'?:'TI~~';'10~-~1'Z:~Z',"i~n;::?'"~~;~~R$'~~fr;'?~'\'~~:;::~~~~;d~~0~m1~~~ l~:~F~ y.te > J;~iE(;;t-(, . ;?.&;;:.~",i,f:.i;:.;Z&:,~~~,,;~;?(~D~ ;~~>)~~'-';'[,;~~~;; i.:~~~{;it,-'1~t-; ~~, ~;:;,f1:1f~g~~2&-:d:;$r2.~ ~~~tt~~;.,k'ffi~~j"'"" Roads N/A Sidewalks N/A I Utilities N/A ~!-~ft~I~~--]~~~~;:f1!:~:~~,jy~~~~~~~~:~~~~~~~~~~~ Architectural/Engineering Legall Accounting Appraisals Lender fees Construction Loan Permanent Loan .Tax Credit Fees Developer Fee Consultant Fee Other N/A N/A $ 450 N/A N/A N/A N/A N/A N/A N/A $ 450 II 1---- Form C SQURCE(S) OF FUNDS FOR OPERATING EXPENSES WORKSHEET Completeness of this worksheet establishes the capacity of the organization to sustain the operations of the program(s). Federal Grants COBG State Grants OTM, Comp300, GROIOTAC $345,000 $ 40,135 "must be accessed after CDBG award Local Grants Non Governmental Grants Donations/G ifts Applicant Contribution Program Income ASH to fill funding gaps as needed To be determined per Individual client needs; app, $10,000 er client 05/31/2009 Loans Other (specify) Other (specify) Please provide a description the timeline of loan and grant application dates as related to the proposed project. Specifically, for any tentative funding sources please provide application dates, award dates and funding availability dates. Upon award of COSG funds, ASH will begin to apply for DO 57 startup funds and for GROIOr AC funds, This process should take approximately 2 months. We will begin to accept client referrals at this time as well. We have two people identified for services through the OTM project; funding will follow immediately upon client acceptance. We will also accepting referrals from the Comp 300program, funds from this program also follows client acceptance into the program" II Form 0 DISCLOSURE OF INTERESTS To assist the City of Ashland in determining whether there may be a potential conflict of interest related to the expenditure of Community Development Block Grant funds we request the following information be provided by applicants: ORGANIZATION NAME: Ashland Supportive Housing and Community Outreach Organization is: 1. Corporation ( ) 2. Non-Profit 501 C3 ( x) 3, Partnership ( ) 4. Sole Owner ( ) 5. Association ( ) 6. Other ( ) DISCLOSURE QUESTIONS If additional space is necessary, please attach a separate sheet. 1, State the names of each "employee" of the City of Ashland having a financial or personal interest In the above mentioned "organization" or project proposed. Name, Job Title and City Department _N/A 2. State the name(s) of any current or prior elected or appointed "official", of the City of Ashland having a potential "financial interest" in the organization or project. Namerritle _N/A 3. Provide the names of each "board member" of the Organization seeking COSG funding Name Board, Commission, or Committee (may be attached as a separate Sheet) 1_see attached sheet 2 3 4 5 6 7 8 9 10 11 12 additional If the applicant has provided names in question 1 or 2, please provide details regarding any known potential conflicts of interest in an attached narrative, II BOARD OF DIRECTORS - ASHLAND SUPPORTIVE HOUSING Midge Binnewies .. President 4884 Highway 66 Ashland, OR 97520 Retired Special Education Teacher Amy Crumme Korth - Vice President 1566 E. Nevada 5t Ashland, OR 97520 Cafeteria Manager, Helman School Mildred Buck.. Treasurer 1001 Oneida Circle Ashland, OR 97520 Agency founder; Parent of resident Mia Driscoll.. Secretary 365 Kent Street Ashland, OR 97520 Teacher, Helman School Tom Dalton 2589 Rosewood Street Medford, OR 97504 Agency founder Sales Representative: PayMaster Postal Equipment Janel Salazar 225 Gangnes Drive Talent, OR 97540 DHS Communications Office Autism Policy Advisor: Rep. Peter Buckley Donna Converse 790 Glendale Ave, Ashland, Oregon 97520 Retired School Teacher Chris Hince 832 Michelle St. Ashland, OR 97520 Staff Representative: Stephanie Kwiatkowski Lead Staff, Pinel House Group Home 7/2008 (541) 552-1621 midaebinn@msn,com (541)482-1843,778..2402 kezI3@aol.com (~1) 482..3290 mmbuck1 001@aol.com (541) 482..4857 (541) 779..2642 (541) 324.6660 ianel@miahtv.net (541) 482..5628 con verse (Q>.so u .edu (541) 488..2322 hincechris@vahoo.com (541) 301..1629 II I --- ----- ASIaAND SUPPORTIVE HOUSING AND COMMUNITY OUTREACH, INC. FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2008 and 2007 ~T--- JEFF REHBEIN CPA 690 FRONT STREET CENTRAL POINT, OR 97502 (541) 664-2429 Jeff@RehbeinCPA.com October 15,2008 To the Board of Directors Ashland Supportive Housing and Community Outreach, Inc. Ashland, Oregon Dear Directors: I have reviewed the accompanying statement of financial position of Ashland Supportive Housing and Community Outreach, Inc. (a non-profit corporation) for the year ended Jooe 30, 2008 and the related statements of activities, functional expenses, and cash flows for the year then ended in accordance with Statements. on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the managers of Ashland Supportive Housing and Community Outreach, Inc. A review consists principally of inquiries of the organization personnel and analytical procedures applied to fmancial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the fmancial statements taken as a whole. Accordingly, I do not express such an opinion. Based on my review I am not aware of any material modifications that should be made to the accompanying finan~ial statements in order for them to be in conformity with generally accepted accounting principles. The 2007 financial statements of Ashland Supportive Housing and Community Outreach, Inc. were reviewed by other accountants, whose report dated February 14, 2007, stated that they were not aware of any material modifications that should be made to those statements. Sincerely, ?~ Jeff Rehbein CPA -----rr-T-- See Accompanying Notes and Accountanfs Report. IIT-~- ~~- ASHLAND SUPPORTIVE HOUSING AND COMMUNITY OUTREACH, INC. STATEMENT OF ACTIVITIES Year Ended June 30, 2008 and 2007 2008 2007 Public Support: Jackson County Mental Health Division $ 815,559 $ 763,648 United Way 2,768 2,823 Total public support 818,327 766,471 Revenue: Client room and board 88,056 94,732 Contributions 4,840 127,926 Grants 8,233 Rent income 7,500 Investment income 18,215 17,056 Gain on sale of assets 80,640 Realized loss on investments (5,055) Net unrealized gain (loss) on investments (26,893) 18,621 Total Revenue 91,718 342,153 Total public support total revenue 910,045 1,108,624 Expenses Pinel Home 285,875 257,497 Miller Home 227,125 214,119 Undley Home 237,070 220,145 Nursing Home 1,038 8,005 Brokerage/Community Outreach 5,298 14,160 Administration and fundraising 153,038 139,313 Total Expenses 909,444 853,239 Increase in net assets 601 255,385 Net assets.. beginning of year 1,198,613 943,228 Net assets .. end of year $ 1,199,214 $ 1,198,613 See Accompanying Notes and Accountant's Report, II ASHLAND SUPPORTIVE HOUSING AND COMMUNITY OUTREACH, INC. STATEMENT OF FUNCTIONAL EXPENSES Year Ended June 30,2008 Pinel Miller Lindley Nursing Brokeragel Administration Home Home Home Home Outreach and fundraising Total Salaries $ 186,584 $ 147,194 $ 155,202 $ 711 $ 1,176 $ 72,249 $ 563,116 Payroll tax expense 16,865 14,830 14,880 300 102 9,225 56,202 Total personnel costs 203,449 162,024 170,082 1,011 1,278 81,474 619,318 Advertising . 486 168 168 168 990 Client activities 1,143 1,362 705 3,210 Client medical supplies 313 389 336 50 1,088 Depreciation 9,089 3,673 8,143 1,759 8,293 30,957 Dues and subscriptions 276 269 178 680 1,403 Employee benefits 36,644 23,760 28,167 8,594 97,165 Food 13,391 12,650 12,761 268 39,070 Fundraising 392 392 Household supplies 1,644 1,619 2,276 49 5,588 Insurance 2,715 2,715 2,715 2,327 10,472 Interest 13,916 13,916 Meals and entertainment 231 232 231 585 1,279 Occupationalheaffih 383 427 269 9 58 1,146 Office supplies 580 662 593 1,978 3,813 Professional development 810 1,550 250 490 3,100 Professional fees 2,569 2,088 869 7,745 13,271 Rent 9,358 9,358 Repairs & maintenance 2,494 2,374 1,655 1,107 7,630 Special events 280 (710) (1,150) 2,241 39 700 Tax and licenses 73 3,360 43 7,145 10,621 Telephone 895 688 984 11 2,526 5,104 Travel 3,097 2,399 2,315 27 2,108 9,946 Utilities 5,313 5,426 5,480 3,688 19,907 $ 285,875 $ 227,125 $ 237,070 $ 1,038 $ 5,298 $ 153,038 $ 909,444 See Accompanying Notes and Accountant's Report, II ASHLAND SUPPORTIVE HOUSING AND COMMUNITY OUTREACH, INC. STATEMENT OF FUNCTIONAL EXPENSES Year Ended June 30, 2007 Pinel Miller Lindley Nursing Brokeragel Administration Home Home Home Home Outreach and fund raising Total Salaries $ 165,338 $ 138,238 $ 140,647 $ 6,849 $ 7,360 $ 63,345 $ 521,m Payroll tax expense 17,533 14,949 15,396 848 1,090 5,472 55,288 Total personnel costs 182,871 153,187 156,043 7,697 8,450 68,817 577,065 Advertising 1,908 683 683 21 3,295 Client activities 588 1,056 312 2,191 4,147 Client medical supplies 499 155 237 28 100 1,019 Depreciation 8,661 3,500 7,760 1,676 7,903 29,500 Dues and subscriptions 221 581 102 1,112 2,016 Employee benefits 29,966 22,512 23,538 8,625 84,641 Food 11,876 12,575 10,680 161 35,292 Fundraising 774 774 Household supplies 1,359 1,354 1,858 4,571 Insurance 3,075 3,075 3,075 1,933 11,158 Interest 21,915 21,915 Meals and entertainment 123 98 98 729 1,048 Occupational health 713 363 519 25 55 1,675 Office supplies 328 2n 373 2,690 3,668 Professional development 1,230 245 1,475 Professional fees 375 375 375 8,975 10,100 Rent 3,300 9,356 12,656 Repairs & maintenance 2,531 3,454 6,655 626 13,266 Telephone 1,564 569 794 28 2,036 4,991 Travel 1,618 2,229 2,221 308 1,762 1,969 10,107 Utilities 7,991 4,776 4,822 1,271 18,860 $ 257,497 $ 214,119 $ 220,145 $ 8,005 $ 14,160 $ 139,313 $ 853,239 See Accompanying Notes and Accountanfs Report ASHLAND SUPPORTIVE HOUSING AND COMMUNITY OUTREACH, INC. STATEMENT OF CASH FLOWS Year Ended Jun~ 30, 2008 and 2007 2008 2007 Cash flows from operating activities: Increase in net assets $ 601 $ 255,385 Adjustments to reconcile increase in net assets to net cash provided by operating activnies: Depreciation 30,957 29,500 Gain on Disposal of assets (80,640) Realized loss on sale of investments 5,055 Net unrealized loss (gain) on investments 26,893 (18,621) (Increase) decrease in: Accounts receivable 1,522 (11,530) Prepaid expenses (1,299) (1,984) Employee advances 3,942 (1,834) Increase (decrease) in: Accounts payable 3,343 ( 1,307) Deposits and fees payable (582) 582 Accrued payroll 1 ,123 3,262 Accrued vacation 5,267 6,784 Net cash provided by operating activities 71,767 184,652 Cash flows from investing activities: Purchase of fixed assets (22,639) (62,398) Purchase of investments & reinvested earnings (23,241) (101,073) Proceeds from sale of fixed assets 80,640 Proceeds from sale of investments 90,000 30,403 Net cash provided (used) by investing activities 44,120 (52,428) Cash flows from financing activities: Payments on city of Ashland Note (3,O10) Payments on Premier West Note (92,391 ) (125,000) Net cash used by financing activities (92,391 ) (128,010) Net increase in cash 23,496 4,214 Cash, beginning of year 71,899 67,685 Cash, end of year $ 95,395 $ 71,899 Supplemental Schedule of Financing Transactions: Cash paid during the year for interest $ 13,916 $ 21,915 See Accompanying Notes and Accountant's Report. TrT ASHLAND SUPPORTIVE HOUSING AND COMMUNITY OUTREACH, INC. Notes to Financial statements June 30, 2008 Not~ 1 ~ Si2~ificant Accountintz Policies Organization and nature of activities Ashland Supportive Housing and Community Outreach, Inc., located in Ashland, Oregon, is a not-for-profit corporation organized under the internal Revenue Code Section 502( c )(3) in April 1982 under the laws of the State of Oregon, The mission of the organization is to assist mentally handicapped adults to achieve the potential to live as independently as they are able by providing life enrichment program for community access to respond to the residents' needs and interests to function and interact with the community Funding sources are Jackson County Community Htunan Services Department and private donations. Basis of presentation The fmancial statements of Ashland Supportive Housing and Community Outreach, Inc., have been prepared on the accrual basis of accounting. The significant accounting policies followed are described below to enhance the usefulness of the financial statements to the reader. The Organization follows the provisions of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. SF AS No. 117 establishes standards for external financial statements of not-for-profit organizations and requires a statement of financial position, a statement of activities, and a statement of cash flows. Cash and cash eauivalents For purposes of the statement of cash flows, the Organization considers all cash and other highly liquid debt instrwnents with an original matwity of three months or less to be cash equivalents. Contributions The Organization follows the provisions of SF AS No. 116, Accounting for Contributions Received and Contributions Made. In accordance with SF AS No. 116, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. It also requires recognition of contributions, including contributed services meeting certain criteria, at fair values. See Accompanying Accountant's Report - ..T ASHLAND SUPPORTIVE HOUSING AND COMMUNITY OUTREACH, INC. Notes to Financial Statements June 30, 2008 Note 1.. Sie:oificant Accountin2 Policies (continued) Contributions The Organization follows the provisions of SF AS No, 116, Accounting for Contributions Received and Contributions Made~ In accordance with SFAS No. 116, contributions received are recorded as llllfestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. It also requires recognition of contributions, including contributed services meeting certain criteria, at fair values. ' Accounts Receivable ACCOWlts receivable are monies due from Jackson COWlty Community Human Services Department, residents and brokerage activities. At June 30, 2008, all receivables are considered collectible by the Organization. Donated material and services Donated materials and equipment are reflected as contributions in the accompanying statements at their estimated values at the date of receipt. No amonnts have been recognized in the statement of activities for donated services because the criteria for recognition under SF AS No. 116 have not been satisfied. Fnnctional allocation of expenses The Organization allocates its expenses on. a functional basis among its programs and support services. Expenses that can be identified with a specific program and support service are allocated directly according to their natural expenditure classification. Other expenses that are common to several functions are allocated by various statistical bases. Use of estimates Management uses estimates and assumptions in preparing its financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, and the reported revenue and expenses. Actual results could vary from the estimates that were used. Support All contributions received are considered to be available for unrestricted use unless specifically restricted by the donor See Accompanying Account's Report --------" I ASHLAND SUP~ORTIVE HOUSING AND COMMUNITY OUTREACH~ INC. Notes to Financial Statements June 30, 2008 Note 1 - Sif!llificant Accountin2 Policies (continued) Income tax status Ashland Supportive Housing and Community Outreach~ Inc. has qualified under an advanced ruling as a tax-exempt organization under section 501 (a) of the Internal Revenue Code as an organization described in section 501(c)(3). Therefore, no provision for federal income taxes has been included in these financial statements, Furniture. equipment. and improvements Furniture, equipment, and jrnprovements are stated at cost or, if donated, at the fair market value at the date of the donation. For financial reporting purposes the costs of furniture, equipment, and improvements are depreciated over the estimated useful lives of the assets using the straight-line method, with a half of a year's depreciation recognized in the years of acquisition and disposal. The costs of additions and improvements which substantially extend the useful life of assets are capitalized. Repair and maintenance costs 'are charged to expense. Prior to July 1, 1989, the entity did not record its capital assets or the related depreciation. Certain assets are recorded at estimated cost. It is not felt that the use of these estimates has a substantial impact on the financial statements as the assets involved were substantially fully depreciated at July 1, 1989. Assets acquired subsequent to June 30, 1989 are recorded at cost if purchased or at fair market value if donated. Depreciation is recognized using the straight-line method. Investments Investments are stated at the readily determinable fair market value in accordance with Statement of Financial Accounting Standard No. 124 Accounting for Certain Investments Held by Not-for-Profit Organizations. Unrealized gains and losses are included in the change in net assets in the accompanying statement of activities, Advertising Advertising costs are changed to expense as incurred, The Organization's advertising costs for the year ended June 30, 2008 was $990. Note 2 - Accrued vacation Accrued vacation represents the entity's liability for the cost of unused employee vacation payable in the event of employee termination. See Accompanying Account's Report ----IT T ASHLAND SUPPORTIVE HOUSING AND COMMUNITY OUTREACH, INC. Notes to Financial Statements June 30, 2008 Note 3 -Short- T enn Investments The short-term investments consist of the following: Money Markets funds $31,170 Note 4 -LOD2- Term Investments The long-term investments consist of the following: Calamos Growth & Income Calvert Income Fund Franklin income Fund Oppenheimer International INO Group Thornberg Investment The Bank of New York Federal Home Loan Mortgage Lafayette annuity P Plus for GE Wachovia PFD FWlding HLDG $29,099 14,219 9,951 9,001 28,054 24,085 23,527 9,512 25,626 27,168 22.980 $223.222 Note 5 - Inventorv Inventory consists of food which is valued at the first-in first-out method and represents approximately % weeks worth of foo~ and kitchen utensils at a level amount unless there are significant changes in its components. Replacements for broken items are expensed as incurred. See Accompanying Account's Report III ASHLAND SUPPORTIVE HOUSING AND COMMUNITY OUTREACH, INC. Notes to Financial Statements June 30, 2008 Note 6 - Land.. Buildin2S and EQuipment A summary of property, furniture and equipment at June 30, 2008 is as follows: Accumulated depreciation . $ 357,746 825,695 62~ 720 1,246,161 (212,587) $1.033.574 Land Buildings and improvements Furniture and equipment Depreciation expense for the years ended Jooe 30, 2008ad 2007 were $30,957 and $29,500 respectively. Note 7 - LODi!: Term Debt Notes payable consists of the following: Note payable with Premier West Bank, Payable in monthly installments of $1,113 including interest at the rate of 7.75% Secured by real property. $132.609 Note 8 - Fundraisine: expenses The Organization's fundraising expenses consist of an annual mailing. The expenses associated with the mailing are immaterial to the organization's overall expenses. The expenses are presented as a lint item within the Administrative costs on the Statement of Functional Expenses. Note 9 - Leases The organization leases office space on a month -to month basis. See Accompanying Account's Report ------.r-T ASHLAND SUPPORTIVE HOVSlNG AND COMMUNITY OUTREACH, INC. Notes to Financial Statements June 30, 2008 Note 10 - Concentration of Credit Risk The organization maintains cash balance at financial institutions located in Southern Oregon, The Federal Deposit Insurance Corporation up to $100,000 insures accounts at the institutions. At June 30, 2008 the Organization had no uninsured balances. Investments are held at Raymond James and Lafayette Insurance. The investment is protected by Security Investors Protection Corporation (SPIC), which protects such assets up to a maximwn of $500,000, of which $100,000 may be cash. Although there exist the possibility of loss, the Trustees believe the protection provided is reasonable. . See Accompanying Account's Report --rrr Ashlnc Year End Financial Statement 2007-2008 2007 -2008 2007 -2008 2007 -2008 Revised Revised Difference Year to Date Difference Year to Budget Budget Actual June 08 One Month Actual Date Income One year One Month Mental Health 857,580.00 71,465.00 74,207.33 (2,742.33) 815,559.06 42,020.94 R&B 87,970.00 7,330.83 7,420.50 (89.67) 88,056.00 (86.00) Brokerage (335.43) 335.43 Grants Food Stamps 3.300.00 275.00 224.00 51,00 3,482.21 (182.21) Contributions 2,520.00 210.00 400.00 (190.00) 4.595.00 (2.075,00) Community Access 2,520.00 210.00 218.87 (8.87) 2,767.58 (247.58) Rent Income 2,500,00 5,000.00 (5,000.00) Total Income 953,890.00 79,490.83 84,970.70 (5,479.87) 919,124.42 34,765.58 Expenses Advertising 4,000.00 333.33 333.33 991.54 3,008.46 Special Events 1,500.00 125.00 125.00 752.77 747.23 Client Activities 3,000.00 250.00 523.83 (273,83) 3,156.22 (156.22) Client Medical 2,700.00 225.00 246.20 (21.20) 1,088.52 1,611.48 Dues & Subscriptions 2,700.00 225.00 89.97 135,03 1,313.80 1,386,20 Food 43,200.00 3,600.00 4,059.97 (459.97) 42,552.24 647.76 Insurance 11,000.00 916.67 916.67 10,469.97 530.03 Interest 21,000.00 1,750.00 1,025.95 724.05 13,916.40 7,083.60 Employee Benefits 106,800.00 8,900.00 8.541.98 358.02 97,165.01 9.634.99 Household Supplies 5.500.00 458.33 429.44 28.89 5,587.29 (87.29) Office Supplies 3,800.00 316.67 471.65 (154.98) 3,812.21 (12.21) Occupational Health 2,000.00 166.67 135.17 31.50 1 ,146.17 853.83 Payroll 572,600.00 47,716.67 47,875.69 (159.02) 557,848.35 14,751.65 Payroll Taxes 74,450.00 6,204.17 4,714.36 1,489.81 53,067.49 21,382.51 Professional Development 2,500.00 208.33 80.00 128.33 3,100,00 (600.00) Professional Fees 9,520.00 793.33 650.00 143.33 12,935.00 (3,415.00) Rent 9,360,00 780.00 833.00 (53.00) 9,358.00 2.00 Taxes & Licenses 3,000,00 250.00 157.02 92.98 9,487.99 (6,487.99) Repairs & Maintenance 7,000.00 583.33 691.72 (108.39) 7,719.91 (719.91) Telephone 5,000.00 416.67 435.19 (18.52) 5,275.53 (275.53) Mileage Travel 6,000.00 500.00 439.48 60.52 4,645.28 1,354.72 Company Vehicles 9,200.00 766.67 440.45 326.22 5,301,29 3,898.71 Meals & Entertainment 1.200.00 100.00 1 00.00 1,279.40 (79.40) Utilities 24,000.00 2.000.00 1,340.11 659.89 19,906.67 4,093.33 Fundraising 1.000.00 83.33 83.33 392.15 607.85 Total Expense 932,030.00 77,669.17 73,181.18 4,487.99 872,269.20 59,760.80 Difference 21,860.00 1,821.67 11,789.52 (9,967.85) 46,855.22 (24,995.22) Capitol expense Sprinkler System Miller 4,120.00 Total Capital Expenses: 34,639.97 New Roof Lindley 5,685.00 Total Operating Expenses: 872,269.20 Appliances 2,775.91 Total Expenses: $906,909.17 Screens & Decking Lindley 985.09 Copier Office 149.98 Revenue Total: $919,124.42 New Garage Door Miller 750.00 Expense Total: $906,909.17 Rewireing & New Windows Old Pinel 7.065.00 *Difference: $12,215.25 Sofa Miller 179.99 *to emergency repair/ Client furniture & Flooring 929.00 replacement fund Vacancy Reserv~ 12,000.00 Total Capital Expenses: 34,639.97 ---........ OREGON ADMINISTRATIVE RULES GOVERNING LICENSING OF HOMES FOR DEVELOPMENTALLY DISABLED ADULTS Stat. Auth. 9RS 410.070, 409.050 Stats. Implemented: ORS 443.400 _ 443.455 411-325-0140 Health: PhYsical Environment (Adopted 1/1/2004) (1) Clean and in good repair. All floors, walls, ceilings, windows, furniture and fixtures must be kept in good repair, clean and free from odors. Waifs, ceilings, and floors mUst be of such character to permit frequent washing, cleaning, or painting. (2) Water and sewage. The water SUPply and sewage disposal must meet the requirements of the current rules of the Department of Human Services goveming domestic water SUPply. (3) Public Water SUPPly. A public water SUPply must be utilized if available. If a non-municipal water source is used, a sample mUst be COllected yearly by the provider, sanitarian, or a technician from a certified water-testing laboratory. The water sample must be tested for coliform bacteria and action taken to ensure potability. Test records must be retained for three years. 4) Septic tanks or other non-municipal sewage disposal systems. Septic ~nks or other non-municipal sewage disposal systems must be in good 'orklng order. Incontinence gannents must be disposed of In closed ontainers. t Room temperature. The temperature within the residence must be riota/ned within a nOrmal comfort range. During times of extreme summer ht, the provider must make reasonable effort to keep individuals C1forlab/e Using ventilation, fans, or air conditioning. (6eat source Screens. SCreening for workable fireplaces and open-faced hE3rs'must be provided. (71ating and COoling devices. AIf heating and COoling devices mUst be imed in accordance with current BUi/ding Codes and maintained in gOOd wcg order. (8)drails. Handrails must be Provided on all stairways. Page 30 of 81 ------111 f\1LS Agent Detail Report(293) Page 2 of2 . Client Detail Report Area Ashland Street Address cambridge Status Off Market (411612008 or after) m Usting # 280660a Coun . Jackson Prop Type Area 850 Cambridge Ashland. OR !1520 Residential Ashland 3 2 (2 0) 1972 10051894 83'154 Beds Baths{FH) Year Built Tax Act to DOMlCDOM TRS 39 1 E 5 See Additional Pictures Usting Price: $315,000 PlOP Subtype(s) Residential Approx Square Feet 1182 Assessor Pric:eISq Ft $266.50 lot Sq Ft (approx) 10454 ((Assessor)) Lot Acres (approx) 0,240 . . '. , Marketing Remar1c This tidy and tum--key 3 bedroom, 2 bath Quiet Village home is one of six that overlook the BilUngs Ranch, so the views from the beautifully landscaped backyard are awesome! It sparkles inside with new paint and carpet. and in spring and summer the gardens are full of lively coror. The newer fla gas furnace and Ale are desIgned for an acfdltlonal400 sq. I" and there's plenty of room on the .24 acre lot to add on. The saltillo tile entry and fireplace hearth add some 'Charm, and skylights add even more Ught to an already bright home. This comfortable home is move.ln ready' Tax Years Agency Yes Represent Taxes 2053.00 Tax Lot # 8100 Generallnfonnation Pre. 1978 Yes Zoning R-1-.5 Subdivislon/Dev. Quiet Village Terrain level Government No Sides Middle School JA Ashland Fann & Ranch Features (Optiona Style Single Story Exterior Wood Substructure Crawfspace Heat Source Natural Gas Air Conditioning Central Water Public (City) Improvments Shed Subsection CC&R Under Construction Flood Sign Secluded Elementary School High School Construction Foundation Par1cing Heat Type Sewer Roof Landscaping Interior Exterior Features Appliances Street Possession Deck, patio, Cable lV Available, Paved Driveway Dishwasher, Range/Oven Public, Paved Close of Esorow Floor Power Source V"IeW Presented By: Joelle Harrell Primary: Secondary: Other: 2007.2008 AA No No N/A Yes No JA Helman JA Ashland Frame Continuous Concrete TWo Car, Garage, Attaohed Forced Air Public (City) Composition Fence - Partial, Garden, Lawn - Partial, Sprinkler -An Alann - Smoke, All Window Treatment, Attic Fan, Rreplace, Mstr Bed 1st Floor Carpet, Tile - Ceramic, Vinyl, laminate Public Utility Territorial, Mountains Cottage Industries 323 Mae Street Medford. OR 97504 541-292-0584 Fax': 541-24S.1989 E-maIl: joelleharreU@yahoo,oom Web Pa e: Featured properties may not be listed by the office/agent presenting this brochure. AlllnformaUon herein has not been verified and is not guaranteed. Copyright @2008 Rapattoni Corporation. All rights reserved. October 2008 . . ...t. , - ~'_ '~:fii.i~; ..;" ~.....'t ... - ~ 1" 11., 1'l(\()O ~~-~----rr, 502 West Main Street, Suite 103 Medford, Oregon 97501 Phone: (541 )773-1711 , Fax: ( 541) 773-7364 Consumer Information Report Oct 16,2008 Prepared for: Attn: E-Mail: Cottage Industries Joelle Harrell JoelleHarrell(Ci)yahoo.com Property Address: 850 cambridge Street Ashland, Oregon 97520 Owner: Crowley, Nancy Prepared By: SAMANTHA RITCHIE Thank you for the amtidence you have placed in us. We appreciate the opportunity to serve you. Please call us with any questions, This title information has been furnished, without charge, in oonformance with guidelines approved by the State of Oregon Insurance Commissioner. The Insurance Division cautions that Indlsaiminate use only benefiting intermediaries will not be permitted. No liability is assumed for any errors in this record. Ticor Title - Proudly Serving Oregon Since 1908- The following information contains restricted. confidential, and/or personal private information intended only for the designated recipient. "you are not the designated recipient please ensure direct delivery. "you have received this communication In error, please notify us immediately at the number listed above. PDF created with pdfFactory trial version www.odffactory.com --liT Details for account number 1-005189-4 Page 1 of2 Navigation MaD TL Seauence Assessment Info for Account 1';005189-4 Map 391 E05AA Taxlot 8100 Report For Assessment Purposes Only Created October 16, 2008 I Account Info I Tax Year 2008 Info I I Land Info I IAccount 111.005189-4 IT ax Report II .. ITax Co~e II~ I IMap 11391E05AA 8100 IAcreage 110.24 I I Taxlot Tax Code 5-01 I l.9.WD9 IOwner IICROWLEY NANCY ITax Type IIDue Date IIAmount I &M ISltus Address IAdvalorem 1111/15108 11$2.101.31 I Land Class 1850 CAMBRIDGE ST ASHLAND R ITax Rate II 15.347 I UNK 0.24Ac CROWLEY NANCY IDistrict Rates II ~ I~~..l 11101 Mailing Address 902 PATTON LN IDistrlct Amounts II ~ IStat Class 11131 ASHLAND OR, 91520 IUnit ID 11196009.1 IAppraiser 1174 I ITax Rate Sheet II - IMalntenance Area 112 INeighborhood 11000 IStudy Area 1103 IAccount Status IIACTIVE ITax Status IIAssessable ISub Type IINORMAl I Sales Data (AS 400) I Last Sale II Sale Date " Instrument Number II Sales History I $107,000,00 II 7/1511992 II 1R92-20831 ~ II ..!iIH1~ I lBValue Summary Detail ( For Assessment Year 2008 ) I ! 13 Market Value Summary (For Assessment Year 2008) I I Code Area II Type II Acreage II RMV II M5 II MAV \I AV I I 5-01 II LAND II 0.24 II $ 228,990 II $ 228,990 II $ 68,250 II $ 68,250 I I 5-01 II IMPR II 0,00 II $106,160 II $106,160 II $ 68,670 II $ 68,670 I Ivalue History --.JI TO~I:II $ 335,150 II $335,150 II $ 136,920 II $136,920 I I Improvements BI ., I~I Year II EffYear I~I . II Type 181 % Complete II Site BUddmg # Area Built Built Class Description DDLJrm ILJLJIOne ~o~ IIResldence ILJI 100% Ir- ~ I ~ Improvement Comments I Appraisal Maintenance III 2007 . INVENTORY REVIEW I ElAccount Comments 2006-04-25 UPDATED IMPROVEMENT ADJUSTMENT EN MASSE>>> 2006-05.05 CONVERSION TO 2005 FACTOR BOOK. POTENTIAL RMV CHANGE ONLY-NO EXCEPTION GENERA TED DUE TO THE CONVERSION. BEGINNING YEAR VALUE ADJUSTED TO REFLECT 2005 FACTOR BOOK>>> 11127/06 UPDATED LANDSCAPING #74>>> 5115/07: RECALCULATE EXCEPTION FOR 2007#135>>> I 8 Exemptions I Special Assessments I Notations I Potential Liability I INotations I I Description II Tax Amount I Year Added I Value Amount I I I II I I I I PD~~:/ ~e8' ~cMo~nt*.olJ!'~CwOra rJmt detail~ftfmlaccount= 1 0051894&bTextOnly=False eel p cory la verSl n www.paCory.com 10/16/2008 ---"'--T - Details for account number 1-005189-4 Page 2 of2 jlRECALCULA TION ICONVERSION TO 2005 FACTOR BOOK I II II BLocation Map 2008 2006 : I I I ;~:-: ,': . ."., 10/16/2008 -.------- -IT T ~~,"'*r~'~~{$:;f~,;;;;;r.7~'~{Zk"S"~"-m~ 'S'""JP""",~?"" ~ l:. a) ~.: ~--, ~-r::/ ~;--; ~. 'f.%' ~~&'$.&&~~ < ".,;!'.."",:--:c.,:."",",!",<: "0,'" :>;j.=;~ m~~ _. ,~v; JACKSON COUNTY TAX COLLECTOR JACKSON COUNTY COURTHOUSE MEDFORD, OR 97501 (541) 774-6541 Pay online now with credit card or check 10/16/2008 4:00:40 PM CROWLEY NANCY 902 PATTON LN ASHLAND, OR 97520 Tax Account # 100.51894 Account Status Active Roll Type Real Property Situs Address 850 CAMBRIDGE ST. ASHLAND. OR Lender Homecoming Financial Loan # 137786817441436060 Property 10 0501 391 E05.AA.{)8100 Interest To Oct 16. 2008 Tax Summary Tax Tax Total Current Interest Discount Original Due Year Type Due Due Due Available Due Date 2008 ADVALOREM 2,038,27 2.101.31 0.00 63.04 2,101.31 Nov 15, 2008 2007 ADVALOREM 0.00 0.00 0.00 0,00 2,052.96 Nov 15, 2007 2006 ADVALOREM 0,00 0.00 0.00 0,00 1,892.84 Nov 15, 2006 2005 ADVALOREM 0.00 0.00 0.00 0,00 1,790.49 Nov 15, 2005 2004 ADVALOREM 0.00 0.00 0.00 0,00 1,765,02 Nov 15, 2004 2003 ADVALOREM 0.00 0.00 0.00 0,00 1,733.33 Nov 15, 2003 2002 AOVALOREM 0.00 0.00 0.00 0,00 1,678.68 Nov 15, 2002 2001 ADVALOREM 0.00 0.00 0.00 0,00 1.664.40 Nov 15, 2001 2000 ADVALOREM 0.00 0.00 0.00 0.00 1.635.04 Nov 15, 2000 1999 ADVALOREM 0,00 0.00 0.00 0.00 1,496.82 Nov 15,1999 1998 ADVALOREM 0,00 0.00 0.00 0.00 1,456.32 Nov 15, 1998 1997 ADVALOREM 0.00 0.00 0.00 0.00 1,442.97 Dee 15, 1997 1996 ADVALOREM 0.00 0.00 0.00 0.00 1,510.31 Nov 15, 1996 Total 2,038.27 2.101.31 0.00 63.04 Page 1 of 1 PDF created with pdfFactory trial version www.odffactorv.com -~-~~--.-- . '--rr-, Improvement Detail for 1-005189-4 Improvement ID 6768 Page 1 of 1 I 81 Building # C]I 1\ 5..01 1[ili"[]1 Ilmprovement Comment: 11/27/06 UPDATED INVENTORY #74>>> Description II Type IIResidence II SqFt II % Complete 111,182 II 100 % Description IFIRST FLOOR 80.3 FB-2 FP-1 IGARAGE T-Attached F-Unfinlshed UFln - 528 I I I Description ICONCRETE IpORCH-WOOO-HVY COMP COVER 100CK-RWITREX-NO COVER I 1 Code 10111 10121 10124 10125 10130 10131 10133 10134 10206 10216 10216 Floors II Class II SqFt II Length x Width II Type of Heat IQJI 1,182 II II FA/CENTRAL AIR ICDI 528 II II Improvement Accessories II II II II Eff Year Built 1972 1972 1972 IBI I[}!UI ID!] I~ Quantity Improvement Inventory II Description II Size II Quantity II SINGLE FP ICDI 1 II RANGE, DROP IN ICDI 1 " HOOD/FAN ICDI 1 II DISPOSAL ICDI 1 II lAVATORY ICDI 2 II TOILET ICDI 2 II SHOWER ICDI 1 II TUe/SHOWER ICDI 1 II FA/CENTRAL AIR I []ill] 1\ HEAVY COMP I []ill] II HEAVY COMP I [ill] PD~~:/ 1te8'~r~c~'~Acw~ra ~rProveme9We~il,cgm?IMPR ID=6768&account= 1005... 10/16/2008 e e cOla erSl WWW.O C rv. om rr.-Y II Sales History Page 1 of 1 ORCATS Sales Data for Account 1..005189-4 o Records Found ! JV File I Journal II Journal ~I Instrument II Instrument I~I 18 Voucher No. Voucher Date Date Number Fee Owner Type Tax lot I 1992-08761 II 08/0411992 I 7/15/1992 I 1992-20831 II WIL I 39~~~~AA I CROWLEY NANCY I S107,ooO.00' I 1990-10250 II 10/10/1990 II 9/2611990 1990-24565 II WIl. , 39~~~~AA I CARPENT:R SUSAN IIS880000.00 I I 1984-03137 II 03f08/1984 111/27/1984 1984-01351 1\ WQ. II 0 II THOMAS ANNE 11$58,500,00 I I II I 1112ll/1980 I D BEDDARD DENNIS 1981-02401 12/0211980 1980.24377 o UROCHELLE L S58.500.00 THOMAS ANNE AGT ! JV History File Journal Voucher No. I' Journal Voucher Date II Instrument Number Instrument Type JV Type II Vol Page 1992.08761 08/04/1992 II 1992-20831 WD 1 II . 1990-10250 10f10/1990 " 1990-24565 WD 1 II - 1984-03137 " 1984-01351 WD 1 " . 1981.02401 " 1980-24377 C 1 II - 1979.00843 II 1978-22438 tI 1 II - PO 10/16/2008 ~------rr-T. ... r ~ /( ~2-2(J83t '1 ,"/ L{\t/-VtJiD. ~~ /(11) 1Jf> ~ tUHl.... 'l'l'tI.B DtvJ.!lt(l( ~ LAt..... "l'J.'rtJI ~ 5U2 N. 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I L ;.: .' ...~ ;~ a1~' ::? ~[, .". ........."..". 11.,. ,~. :'~; pa.- ~WIII'" aIke tlN* PlII>tr PDF created with pdfFactory trial version www.odffactorv.com JACKSON COUNTY Itf'ORM\T1ON lECHNQ.OG'1' Map Maker Application Front Counter.legend QH~hllghted F..lure ; "'; TalC L<iC OutIlnes Tax.Lot ",ul!i~~ ~I" .',. ..; ~" ---11-1 Map Output Page 1 of 1 lication i!] ~b~___ ~~~ " 'f...~.'. a ..... .',: ~~. ~.... .......t.. 10/7/2008 ---rr- T - MLS 3-Up Comparison (225) Page I of 4 3-Up Comparison Report Listings as of 10/17/08 at 10:13am Page 1 Property Type Residential Area Ashland Status Sold (4/19/2008 or after) Bedrooms 3.00 to 3,00 Total Bathrooms 2,00 to 2.00 Year Built 1960 year(s} to 1985 year(s) Listing # Property Type Property SubType Status Street Address City & ZIP Area Sq Ft (approx) Lot Sq Ft (approx) Lot Acres (approx) T/RlS Year Built Beds I Baths (FH) Original Price Orlg PRlSF Listing Date Listing Price List PRlSF Sold Date Selling Price Sell PRlSF Financing DOM/CDOM Bedroom 2 Bedroom 3 Bedroom 4 Bath 2 Bath 3 Exterior Features Interior Elementary School Middle School High School Appliances Foundation Heat Source Heat Type Kitchen Lot Dimensions Laundry/Utility Master Bedroom Master Bath Parking Style Air Conditioning Exterior Floor Waterfront Water 2802876 Residential Residential Sold 176 Jessica Ln Ashland 97520 Ashland 1000 O,120approx acres{Assessor) 0.120 39 1E 4 1982 3 12(11) 259,900 259,90 03/28/08 259.900 259.90 05/16/08 250,500 250.50 CONV 17/17 Patio Alarm ~ Smoke JA Ashland JA Ashland Dryer, Refrigerator, Washer Electric Baseboard One Car, Garage, Attached, Off Single Story Carpet, Vinyl Public (City) 2723115 Residential Residential Sold 535 Rock St Ashland 97520 Ashland 1238 O,160approx acres(Assessor) 0.160 39 1 E 5 1965 3 I 2 (2 0) 325,000 262.52 12/14/07 295,000 238.29 07/03/08 275,000 222.13 CONV 167/167 Sauna, Patio. Cable TV Availab Alarm - Smoke, All Window Trea JA Ashland JA Ashland Dryer, Range/Oven, Refrigerato Slab, Continuous Concrete Electric Heat Pump Two Car, Garage. Attached Single Story Heat Pump Wood Carpet, Hardwood, Vinyl Public (City) 2802612 Residential Residential Sold 300 Sheridan St Ashland 97520 Ashland 2214 0.100approx acres(Assessor) 0.100 39 1e 5 1979 3 I 2 (2 0) 339,900 153,52 03/19/08 328,900 148,55 07/22/08 310.000 140,02 CON V 72/72 Deck Alarm. Smoke, Ceiling Fan, Db Garbage Disposal, Range/Oven Concrete Block, Slab Natural Gas Forced Air Two Car, Garage, Attached Two Story, Contemporary Central, Window Wood Hardwood. Tile - Ceramic. Viny Public (City) Presented By.' Joelle Harrell / Cottage Industries Featured properties may not be listed by the office/agent presenting this brochure. All information herein has not been verified and is not guaranteed. Copyright @2008 Rapattoni Corporation. All rights reserved. htto://somls.raomls.comlscriots/mgraisDi.dl1? APPNAME=Sooregon&PRGNAME=MLS... 10/17/2008 ----------- ----- ---rr-r ----- MLS 3-Up Comparison (225) Page 2 of 4 3-Up Comparison Report Listings as of 10/17/08 at 10:13am Page 2 Property Type Residential Area Ashland Status Sold (4/19/2008 or after) Bedrooms 3.00 to 3.00 Total Bathrooms 2.00 to 2.00 Year Built 1960 year(s) to 1985 ear(s) Listing # Property Type Property SubType Status Street Address City & ZIP Area Sq Ft (approx) Lot Sq Ft (approx) Lot Acres (approx) T/R/S Year Built Beds I Baths (FH) Original Price Orlg PRfSF Listing Date Listing Price List PR/SF Sold Date Selling Price Sell PRlSF Financing DOM/CDOM Bedroom 2 Bedroom 3 Bedroom 4 Bath 2 Bath 3 Exterior Features Interior Elementary School Middle School High School Appliances Foundation Heat Source Heat Type Kitchen Lot Dimensions LaundrylUtillty Master Bedroom Master Bath Parking Style Air Conditioning Exterior Floor Waterfront Water 2804505 Residential Residential Sold 1213 N Main St Ashland 97520 Ashland 2084 O,210approx acres(Assessor) 0.210 39 1E 5 1961 3 12(20) 345,000 165,55 05/13/08 345.000 165,55 08/01/08 315,000 151.15 CONV 49/49 OxO Level: Main OxO Level: Lower OxO Level: Lower Deck Alarm - Smoke, ObI. Paned Wind Dishwasher, Oven. Wall Natural Gas Forced Air OxO Level: Main OxO Level: Lower OxO Level: Main OxO Level: Main Two Car, Garage, Attached Two Story None Wood Carpet. Hardwood, Vinyl Public (City) .... ... t"- o .'~ '~~"-Ji"'~ ~ ~ef~~~ ," ~ p' ::"-t..~) 2603936 Residential Residential Sold 444 Courtney St Ashland 97520 Ashland 1368 O,180approx acres(Assessor) 0,180 39 1 E 9 1968 3 I 2 (2 0) 355,000 259.50 05/01/08 336.000 245.61 08/05/08 318,000 232.46 EXCH 62/62 Deck Alarm - Smoke, All Window Trea Dishwasher, Dryer, Range/Oven, Continuous Concrete Natural Gas Forced Air Two Car, Attached Two Story Central Wood Carpet, Vinyl Public (City) <Y;' ?"1::r/ ~~ . ~ .... 'l}~~".. . ~..;"',.l.;~.... .t- ~~~\\.;~ ~ i_I~, ': 2801633 Residential Residential Sold 699 Glendale Ave Ashland 97520 Ashland 1672 0.200approx acres(Assessor) 0,200 39 1E 14 1980 3 I 2 (2 0) 350,000 209,33 02122/08 335,000 200.36 06/12/08 326,000 194.98 CONV 82/82 Deck, Patio, Cable TV Availabl Alarm - Smoke, All Window Trea JA Ashland JA Ashland Garbage Disposal, Range/Oven, Continuous Concrete Electric Heat Pump Two Car. Garage. Attached Single Story Heat Pump Other Carpet, Wood, Tile - Ceramic Public (City) Presented By: Joelle Harrell / Cottage Industries Featured properties may not be listed by the office/agent presenting this brochure, All information herein has not been verified and is not guaranteed. copyright@2008 Rapattoni Corporation. All rights reserved, htto:/ /somls.rapmls.com/scripts/mgrQispi.dll? APPNAME=Sooregon&PRGNAME=MLS... 10/17/2008 -rr-T--- MLS 3-Up Comparison (225) Page 3 of 4 3-Up Comparison Report Listings as of 10117/08 at 10:13am Page 3 Property Type Residential Area Ashland Status Sold (4/19/2008 or after) Bedrooms 3.00 to 3.00 Total Bathrooms 2,00 to 2.00 Year Built 1960 year(s) to 1985 ea s Listing # Property Type Property SubType Status Street Address City & ZIP Area Sq Ft (approx) Lot Sq Ft (approx) Lot Acres (approx) T/RlS Year Built Beds I Baths (FH) Original Price Orlg PRlSF Listing Date Listing Price List PRlSF Sold Date Selling Price Sell PRlSF Financing OOM/CDOM Bedroom 2 Bedroom 3 Bedroom 4 Bath 2 Bath 3 Exterior Features Interior Elementary School Middle School High School Appliances Foundation Heat Source Heat Type Kitchen Lot Dimensions Laundry/Utility Master Bedroom Master Bath Parking Style Air Conditioning Exterior Floor Waterfront Water 2806631 Residential Residential Sold 358 Cherry Lane Ashland 97520 Ashland 1064 O,170approx acres(Assessor) 0.170 39 1 E 5 1965 3 12(20) 337,000 316.73 07/14/08 337,000 316.73 08/15/08 337,000 316.73 CONV 6/8 OxO Level: Main OxO Level: Main OxO Level: Main Patio, Handicap Friendly, Cabl Alarm - Smoke, All Window Trea JA Helman JA Ashland JA Ashland Dishwasher, Dryer, Garbage Dis Concrete Block Natural Gas Forced Air OxO Level: Main OxO Level: Main OxO Level: Main OxO Level: Main Two Car, Garage, Attached. Off Single Story, Ranch None Wood Hardwood, Vinyl Public (City) 2804219 Residential Residential Sold 897 Clay St Ashland 97520 Ashland 1604 O,210approx acres(Assessor) 0,210 39 1E 14 1968 3 I 2 (2 0) 365.000 227,56 05/02/08 365,000 227.56 06/09/08 343,100 213.90 CONV 9/9 Two Car. Car Port, Attached. 0 Single Story, Ranch Central Public (City) . ~. .. .' ~r~" _,'I;:... r.~~ )-' - ,~. ~ ...,c ~}n~:':'~~, -=. , ;~" ,~ .;r,,' h~ 2803312 Residential Residential Sold 2015 Mae Ashland 97520 Ashland 1471 O,250approx acres(Assessor) 0,250 39 1E 14 1980 3 I 2 (2 0) 369.000 250.85 04/11/08 359,000 244,05 07/29/08 348.850 237.15 CONV 77/77 Patio, Paved Driveway All Window Treatment. Ceiling JA Ashland JA Ashland Dishwasher, Garbage Disposal, Concrete Block. Continuous Con Electric Forced Air Two Car. Garage, Attached Single Story Heat Pump Other Carpet. Hardwood. Vinyl Public (City) Presented By: Joelle Harrell I Cottage Industries Featured properties may not be listed by the office/agent presenting this brochure. All information herein has not been verified and is not guaranteed. Copyright @2008 Rapattoni Corporation. All rights reserved, http://somls.rapmls.comlscripts/mgrqispLdll? APPNAME=Sooregon&PRGNAME=MLS... 10/17/2008 - ---- . --TlT-- MLS 3 -Up Comparison (225) Page 4 of 4 3-Up Comparison Report listings as of 10/17/08 at 10:13am Page 4 Property Type Residential Area Ashland Status Sold (4/19/2008 or after) Bedrooms 3,00 to 3,00 Total Bathrooms 2.00 to 2,00 Year Built 1960 year(s) to 1985 ear s Listing # Property Type Property Sub Type Status Street Address City & ZIP Area Sq Ft (approx) Lot Sq Ft (approx) Lot Acres (approx) T/RlS Year Built Beds I Baths (FH) Original Price Orlg PRlSF listing Date Listing Price List PRlSF Sold Date Selling Price Sell PRlSF Financing OOM/CDOM Bedroom 2 Bedroom 3 Bedroom 4 Bath 2 Bath 3 Exterior Features Interior Elementary School Middle School High School Appliances Foundation Heat Source Heat Type Kitchen Lot Dimensions Laundry/Utillty Master Bedroom Master Bath Parking Style Air Conditioning Exterior Floor Waterfront Water 2805919 Residential Residential Sold 660 Park St Ashland 97520 Ashland 1666 O,370approx acres{Assessor) 0.370 391E 15 1960 3 12(20) 375.000 225.09 06/24/08 375.000 225,09 08/15/08 362,500 217.59 CONY 17/17 Patio Alarm - Smoke, Drapes - Partia JA Ashland JA Ashland Dishwasher, Garbage Disposal, Continuous Concrete Natural Gas Forced PJr Two Car, Garage, Detached. RV Single Story Central Wood Carpet, Hardwood. Vinyl. See R Public (City) Presented By: Joelle Harrell / Cottage Industries Featured properties may not be listed by the office/agent presenting this brochure. A1llnformatlon herein has not been verified and is not guaranteed. Copyright @2008 Rapattoni Corporation. All rights reserved. http://somls.rapmls.com/scripts/mgI:qispi.dll? APPNAME=Sooregon&PRGNAME=MLS... 10/17/2008 ~-~~"------.r" T"- 10/16/20es 11:37 t.:.I ;=lll~.t;\ 5412451989 COTTAGE INDUSTRIES. PAGE 05/07 r,r- 0'{" 0 ~ Property Address 8. GENERAL A. Are 1hefe.~efOS with dif19. soft, s1.and1ng wa~er or drainage on B. =~::~~~~~,~:.~::~:::~:::::::::::::::::::::::::::::::::::::::::::::::::::::::~::::::::::::::::::::::::::::::::::':::::B ~: C. Is there any matEtrial daOlElge to ttle property or any ofthe structUre{S) from fire, windj Roods, beach movements., earthquake. expensive SOils or land~$? ......,......,......-.....0 Yes 0, Is the.property.ln.1l .~$i.QMted 1Ioodp!ain? ...'.'.......,.....................,.."...............,..... ,......' '.........."... ..,..........0 Yes. E, Is the property in $ design9ted slideorother9~~ ha~ ZOM? ,.."................."'...........,....................0 Yes .oF, Has any portion of the property been tested Of treated for asbestos, formaldehyde. radon, gas. lead-bsMd paint. mofd, W or ~ice! storage tanks 01' COntaminated 6()j1 Or \Wte(? ........::. ,_" ,.........0 Yes G. he therEt any~nks or underground.storag& tanks (e.g" septic, chemioal, ruel~ eta.) on the property? .0 Ye$ H, H&$.lhe. ~ ever ~ used as an .Jegal Otug ~{)f <lsttibution sits? ,..,....................,.......D Y&s "If yea, was a Certif1eate of Fitness ~? ........................ ...... ...,...........................,........"........".....,.,..........0 Yes Has the prOperly been cfasslfied as ~n infelfaoa?........................,...............,.,....,,,................,[J Yes 'T ~No o Unknown 1 1 t:r.No- D. U~known 1- i~ 1 o Unknown 1 o Unknown 1 [If.No O. Unknown 1 o Unknown 1 ~ 1 f.d'No o Unk.nOlNft 1 ~~ O' Unkno'M'l 1 Cl UnkOOWll ~A- 1 I3"Ro. DUnk.nown 1 1 1 1 1 The foregoing fJ.f'S.IIetS and almched eXPlanatfon& (f artI) are romplete and oorrect1o tt)e be$td my/w lmowIedge and I,We have feoaived e ~ of llis di:sclosure statement WJ8 authorize my/ot.ragerl.s todefrvera copy of this dscIosure~to 8!f prospecliVe buyersof1he P~orflar ~"1Is. ~_._~~-~._~~~~~.~~~~te _~ A. As buyer(s). l/we acknowledg& the duty to pay dJigent attention to any material defects that are known to melus or oan be known by rmWs by utJUz:ing diligent attentfon and obserY8tion, e. Each buyer eckn&MadgQ& aoo Ul'lderstand9 that the ditaClosur9G aal forth if) this statement end in 8ny 8I"l'lel1dmelm to this statement are made only by. the SEdler and are not the reptesentafions of any financial Institution that may have mad,e or may make a loan pertaining it) the P~I Or that may hay&. or lake. 8. sec.utity tl1terest In the p.roperty. or. of any r:eal estale t10ensee engaged by the setter or buyer, A fill8nda1 in$tItution or real estate Jioensee i$ not bound by Bnd has no liability Wilh respect to any representation, misrepresentation, omlssiotl, erroror inaccuracy contained ill another panys disclosure 5l6tement fequifsd bY"\ni5 6ection or any amendment to the disclosure statement 0, Buyet' (which tEtnn includes all persons signing thQ ~Y6r'S Acknowledgment" portion of this <lisdosura s~t~~nt below} he."ab}< acknm\1edgos receipt of a copy of this d.isdQsure statement (including attachments. If any) bearing seRer's signalUre(s). OISCLQSURES, IF ~Y. CQNTAINED IN THI$ FORM ARE. PROVIDED. BY THE SELLER ON THE SASIS Or Seu.E~$ ACTUAl KNOWLEDGE OF THe PROPERTY AT TH~ TlME OF OISCLOSURg. IF THE SELLER HAS FIL.L.ED OUT SECTION 2 OF THIS FORM. YOU. THE BUYER. HAvt rIVE BUSINESS DAYS FROM THE SELLER'S DEUVeRY OF TH~S D~SCLOSURE:, STATEMENT TO REVOKE YOUR OffER BY DEllVERING YOUR SEPARATE SIGNED WRiTTEN STATEMENT OF REVOCATION TO THE SElJ.ER DISAPPROVING nt!: SELLER'S DISCLOSURE UNLESS YOU WAIVE'THIS' RIGHT AT OR PRIOR TO f,;NTERtNG INTO A SALt: AG~eMeNT; . 8UYeR HEREBY ACKNOWLEDGES RECeJPT'OF A COPY OJ; tHIS SEll.ER'S PROPERTY mSClOSuRe.sTAT~MENT. Date ~ BUyer t _ OatQ-........_ ~ . buyefs behalf'h) and da~ Real ~e Licensee Date 1SCeiv9d by agent: Reat Estate Finn lb{ ,~ I~ @ Oregon Re5~ Estate Forms. LLC Rev 01108 ~ portion fl'I.ay be r~fYroduc9d wlthout exp."S$$ P9lTJiission rl Oregon Real E~te Forms, LtC J IOREF ll204 LINES WITH THIS SYMBOL for REQUIRE A SIGNA1lJR.6 AND DATE . Buyer InitialS -1_ 0213_ ~ "7/"/F~ ----------rr-T--- --- 1 1- 1. 1. 1. 1, 1. 1: 1i l! 1! 1! 1: 1! 1! 1! 1! 11 1! 10/16/2008 11:37 \It 5412451989 COTTAGE INDUSTRIES PAGE 84/07 .~~t: Property Address 5. DWELUNGSTR~TURE · A, ~~~~{ =~:;j;i:?' ::::~::::::::::::::::::::::::::::::::::::::::::: :::::::::::::: :::::: :::::~::::::::.:~.:.:.::.:::.:::::.:::.::::::::::.::~~::~,:: ::8 ~: 8. he there any additt0ns, conversions orretnOdeling'? ...,."...,........................,................"........'.hh..........,.0 Yes If ye!S. was a building pel'l'nit requifOO? .... .........,.....................,... '..'.m..'.......... .....,u,..,.. '.... ................ .....,... Dyes If yeG, was a bUllding peJTTlk obtained?............... ................,..,.. ..,..,.....'..............,...... ....,.........,."................ 0 Yes C. ~::~':~~::=:~r==?::::::::::::::::::::::::::~::::::::'.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~ o. ls there a woodstove included in the Sole? Make ....0 Yes ~E, ~~s~nst~~~J =:J;;;'.\~'hOUSe~'~'~'dOOe'~~u;'ia~1t;ee'yea;s?::::~.....:::::~: "F. A~ them Q."'ymQi.w~~, ~.Eiofwat~r penetration. mif~ odors. or ~r mol$tJJre conditions (especially in the basement)? ..,.....,.............,........,.......................................0 Yes f9'No, 0 Unkoovt'n "'\1 yes, explain on attached sheet ft1e frequency and extent of problem and any insumnce claims. repairs or ren1Gdtatlon dolle. G. ' Is thet'E~ a sump JJUlTlP on1he praperty?,......................~......,....,...,..,.,.........................,......,........................mas 0 No 0 Unkt'lown H, Are there any matertal~ used In the construction of the Structure that are or h8V&..~.n lhe.s~ofa ~n. dtmaotion suit. i*.11tlemeJ1t~fiti9atio07,...............n..'....'m.....'..........D Yes ~ 0 IJnknown If yes, what are the materta)s? ....... ...... ..._.... ..._. (1) Are 1here problerTlQ with the materials? ......,...................'n...................................."......................,..,.0 Yes t:J No P. UnkrJown (2) Ale the materials oovered by a warre.nty? ........ .......... ,...., ..,........ ..... ...... ......... ...... ,.,. ..,.............. ....., ,.0' Yas 0 No Cl Unki10Wfl (3) HavQ,thl#rnateflals.been inspected? ...,.......,.,.,......"",,..............,.......................~.......,........,..,...........0 Yes 0 No D UrIknown (4) Have 1he.~ ever been daimsfded fortnese materials by you or by previous owners? ...,.....".......D 'YQS 0 No 0 Uflkno'nn Iryes, When? _. " . . .' . .,..~ (5) Was monGY re08iv8d? ...,.........,............,....................................,......,........-........,.,..............................0 Yes 0 No D Unknown (6) We~ any of the materials ~irector replaood?.......,.......................................,.....,.........................O Y8S 0 No D Unknown Q.. QWE.J,~kJN.G. $YS1EMS AND FIXTURES If the following ~emsor fixtlJ~.9.re. included. In lhe.purehaseplice, are they Innood .woridng order- on the. date 1hls form is. Signed? . A Electrical~) includlngwirlng, switchee, outlelo and service..........n'..m.'.........,................................r:!'yes 0 No D Unknown B. Plumbing system,lnduding pipes, faucets, fixtures and toiiets ....,......"....................................................ErV9$ 0 No B Unknown ~, ==:=:::::::::::::'::::':::::::'::::::::::::::::::::,:::::::::::::::=::::::::::::=::::::::::::::;:;;::;:::;;::::;;:;:~: B: 0 = F. Built...jn dlshwash9r ........".."...,.......,,, ...'............... ,................, .n.....'........"......................,......, .........,......,..' ..,....gvea. bJ No 8 un\q1l;)\Y1'l. G. Sump pUfTIp .......,......,.. ..........,......,....................... ............. ,.....,.,......................,........................"..................L:'J. Yes C:J No P Unk.f\C!Vr'I':l H, Heating and cooling systems ....",..............~h........,.................,..........................,............................",..........~yoo C] N? t:IUnknCNJfl /, S$(;ulilYsyst&m 0 Owlled 0 Leased.....,...............................".................,............,.........,.....................tJry-es 0 No D Unknown J, Are there an)' matertals 01' products usedJn the.~. and fixtures that are or have been the subject 0',8 recaD, cJ8$S action settlement orolher litigations? ....,.....,...0 Yes. [!:No [J ()nknovm If yes, what product? (1) AJe. there problems with me product'L...............,..............................,.....,...........................'"............0 Yes 0 No CJ UnknOW'n (2) ls the pTOdu<;!.(;(;)V$reci by a warranty? .......................,.... ,.....,.....,.................................................. .....0 'yes 0 No 0 UnkrlOVJl1 (3.) Has.1ha.product been inspected? ..........,........,............,...................................................,.......,..........0 Yes 0 No 0 UnkllO'NO (4) Have daims been filed for this product by you or by pl'$vious owners? .,.......,.........,....,.................0 Ye$ 0 No 0 Unknown tfyes, VIlhan? (5) Wa~ moooy r8CeiVed? ,...................................,....,...................,....,..........."..........,......,.....,..,.,............0 y~ D No 0 Unknoon (6) Were. any of the material5 or products repairBdOf replaced?.... ,.........,...........................,.................0 Yes 0 No 0 Unkf1O\~..T1 ~o [lNo [i'No DNo ONa DNo ~. DNo [jNo o Unknown ~.l,l~r)Oy~ 1...1. l.!l:lI5nowo o UnknoWo o Unknown o Unknown QUnkncn.m D. U~nown OUoknown CJ Ur'Iknown 1. COMMON INTEREST A. Is th9f9 a. Home Owners' ~n or01hergol/eming entity'?,.......... ''''',,,,',,,,,,,",,,,,,,,........................ 0 Yes ErNo 0 Unknown N~mB of Association or Other Governing EntitY. Contact Person B. ~==peiiodicassessments;$. per ClMt)'.,....OVeat'...,. 'OOifler __Phone.Number ~, Are -there any pending. or propo...qed $J)eOiaI ~ts?.....,.......,............,'-........,............h..................O Yes erNo 0 U~vn D. Are 1hareshSrea "common srea.s" Gr JOInt matntenance agreement for facDitJes. like walla, fences. pools, tennis courts. w.a'~,OI' Olhe.r~~$~oo:(\W~.in undivided.interQlSt wIth~r$1,.....m.........,O Yes Ef.~ 0 Unkoown E, Is the' Home Owners' Association or other governing entity 8: party to pending litigatloo Qr ~bj8d ban UI'lM1IMied ~menr? :,.......................,...............,.............,.........,.........tl Yes 0 No 0 Unknown F. Is the property in viol.(dion of recorded covenants, conditions and restrictions Of in. violatiOn of otl:1erbylaws or goveming rules, whathar recorded. or not?..;..,.......,..... ..".0 Yes 0 No 0 Unknown 1{ Ia""NA 1{ 1C ta'NA 1( 1( bd'"NA 1( IirNA 1{ 1C 1C "'" 11 11 11 11 11 '11 11 11 ~ 11 11 11 ~ 12 12 ~~ 1~ n 1~ 12 1.2 1-2 12 13 0 NA is 0 NA 13 0 NA 13 B NA 13 NA 13 ..vA 13 13 13 13 .N"A 14 j 14 14 14 14 14 14 14 14 14 15 16 15 15 15 15 15 ~ 15 L.f'"NA 15 15 $ELLER ::'~. oalll7-cr-oQ-.. SELlER .Dal& E- O Oregon Rtijlr,Jl Esis . OnTl$, lLC Rev 01106 No portion may be reptoduQed wilhcut expI"Cas paiiilisskm of Oregon R~ Estate Forms, LLC 1 ' . ORt:F 020.;J Bt.lyer Initials -----1_Date___ LINES WITH THIS SYMBOL + REQUIRE A SIGNATURE AND DATE A 7/'/P~ ~-------rr---T - 10i16i2008 11:37 ~ .r;#,~ COTTAGE INDUSTRIES PAGE 63/07 5412451989 , :tFo?e5~ The folJolMog am f~~ ~ by hl saIl$r Mdete oOllhe ~ of any financial ~n tn&t may have I'nfl<k! Of may make a k.Ien pertaining to Ih:e pr~, or ~ ~ have Of ~Q.sacurit). in~Hn the propMy, 0\ any ~~ ~ bnsetl.(mgaQQ(1 by1he6eUer or the buyer, ,t you mark yes on itemS witn It., auach.8 copy or~ on an atiached shoot. ~,TJTlE Do vov haVe- JegaI auttlOt'ty to sell tho propMy? ...............M........ .-...,.......... ......... ................, ........... ...., ..~rl Y.es 0 No 0 Unknown *e. lj~r:;l~=~~~cr.~~~;g~t'O.oo;;~.EiL~~.........tJ y~ lB'N9 0 UnkJxMln *C. Js Q1e prop9lty bejng~ns1efred an uNawfuny 9Stabr~ unit r:J land? D YG:t ~o 0 Unknown ~. he 1hereany~. bounda4y agreements, boundary dlspu~ or ~! ~.fi).~1.-::..; ....;:""1:,,..::.'>1,...,-......,.....,.......'..,............... .., ...,......."" ...,......... ............... ..........n.... 0 Yes ~o 0 UnknorNn *e. Are. there any rights of way, ~, JIoenses.. aooe5S.lInitationa or: daims lhat may affect yourintetBst in the property? ...................-.............................."...............'.......,.....8 Yes ~o 0 UnknOWJl ~. Ate ttIere any &g1'9QmeOW for jokrt ~.al,1ieMrlO& of an easement or rfght of way? ...............,...... ............ Yes ~o 0 Unknown ~. Am them any gQwmmentat studies, d8signation$. ~tog ovena~'S, ~ .or ootkr.e:; ~ )tIO.UJd .affect Dle-J)r'OJ)If1y? .,~'n~'''''''''.~l1n.n;..!~I#.~''..';:O'1''''~',.UI.U~NI>.I} ..#.. ~..... u u ...... n # ,.. "..... .....u,,. UI '" '" ,0- Yes ~ Am theteany p.enQ.i~ QJ: 1P.Ci~"-9 ~romental~ents~ ~.prorxmtl .............................0 y~~ ~ Are (t'l9f9 any Zoning violations or nonconforming uses? .......n..."'...........................................................~ Yes ~No. . ~'=~~~=t=X;s.;;r~*i.~~~tt;'~.::::::::::Jj~: ~ )$100 ~~1bJGc;t t(}any~~ ~ntf)t~x~tment~ may resultln.teyy d add"bnat taxe.Ei ifh prope.rty tss.okf? ........................... ........-.-........................................0 Ye$ B'No 2. WftTER A. Household w~ter _/ (1) The source ofthewatef is (dled< AlUhat apply): C:fPublic 0 Community 0 Private 0 0Iher t2} We. $C,)JJICQ infom18tion: 'a} Does U'le water. source require a waterpennlt? -..-..-..-.........................,..............,.................0 Yes Gf'No 0 Un1<.r\OVd1 If yes.. dO.you.haVe a.pennIt'? ....~"'..,.............,......~.......,.......... .._u.... .-.................... ........,........,0 y~ ONo- .b) is 1he ~ source lcx:ated on the pfOperty? ".............................. '... ........................................8 Yes 0 No 0 Ur'lknown "1f not, are there any wr1tie., agreements for a shared water source? ................. ....., ............. Yes 0 No fie} ,~~ an ~ (NJOOl'dQd Olun~)foryour access-to or lMlntenanca of 619 watef SOU/P9?' ..............,..,...................... ...... ....,...,....,.......,..,.....................0 '''as D'No 0 U'nf<noY.ln d) tf'the ~roeofwater l8.froma .weR.oc spO"9! have. you had. any. of thefollOlNing in the past 12 rnonths1.....,.,................-...."................,....,.._......................,........Cl Ye$. 0 No. 0 Unknown o Flow 1est 0 Bade.ia te:;t 0 Chemleel oontants test "e) Ne there any water SOlEce plUmbing problems or ~ W.,ali'S? .... ...................... ,.,......-.Cl Ye~ ~. flip 0 Unknown (3) ~ =:'bwu=tment ~for the pl'Otlerty? .-......,.-......r"..........................................0 Yet:1 ~ 0 Uhitr'lOYffi frrig;ition (1)' Are 1here any 0 wa\$r right$ Of' 0 othEit tlgh1s for t."1e ~i'y7 ..........,.......,................... .....,....,..0 Yes ~o l"knoNn · (2) lr sny exist, hBthe Irrigatlon water been used during the tastWe-vnr pgriod? ............................0 Yes 0 No r'lknown "'-(3) 'S there a Walerrtgh\S ~teOf oth8rWJjtteo~avat!abl.e? .......,.....................................0 Yes CI No . nknown ~~:r =:= sprinkler sysIBm forihe property? ........................"........................m...........,.....tiiYes 0 NC) 0 Unknown (2) tia6 8 ~ tIOYv' y~ been ~ ................ .................. ........ .................... ......n.......... ................ td)"~ 0 No (Y{.Jna<nown (3) ~ ttl& outdOor ~ s~ openlbIe? .................-............,.........................................................ISrYe$ 0 No 0 Unkr~n 3. Sf!WAGE SYSteM A, It; th9 propeily COf'lnQCt9d to a public or-oommunity sewagQ~? ........,......................._....................Gt~ a No a, m-~Wl}'-lJfilWpublicoroommunlty.~Systemspropose(Ubr1hepr9~1..~"..~'.....!mmmmO Yes B1J.!". c, Is tha property conneaed to an on-site septic &)(&tern? ......................... .............. ..... ..... n. ,.... ..' '...... ','.. 1:1 Yes [i('Nv ~: ~= ~~or9it;;(i?:~:~:~:::..,~~~:::::~:.......~:::::::~:::::.:~::::::::::...:::::::...~'.....:~:::~::..:...~'.~::::~::.......'.~B~: 8 ~ ... the condition dine $ys.tem been-~and af9POlt ~'L..... ............,................... ..........0 Yes 0 NQ Mae If ,ver been pumpec;l? "..,,,.,..........,:....,................,.........,....._...,,,.............H.................,........................0 Yes D No ~D. ~~= Sewage syst8m prol:;1ems of needed ~.L..,~~,.:...................................................uu...O Yes ~ 0 Untcmwn e, Does your 89W9g9 system require on-* pumping to Mother level?.....................,.............,.............. 0 Y$$ ~ 0 UnIG".awn 4, DWEWNG INSUlATION ^ e~~~::::::::::=:::::::::::::~:::=::::::::::::::~::::~:::::::::::::::=::=~::~=:::~~~::::::=:::::~: ~ 8 [5 B, Ale them any defecti\"e Insulated door$ orWlndow$? ....,_............................,...,..............,........................cJ Yes m1Jo 0 UnJ<noWtl SB.lER '-1.( 11M. M DaIs 7- 'f-'011' .. SEL.LER. _ DaIs .- @ Oreg~>n Rear EstafArnB. LlC Rpv 01/08 No pofb may be 1Efp~ wlthollt express permission of Oregon Rool Estate FOm19, U.C r ' OReF 020-2 LINES WITH THiS SYMBOL- -E-- REQUlRE A S!GNA1URE AND DATE L 8uyer Initials- ----1_ Date~ ~ 7/'YP- *H. !. .J. ~. lit.. o Unknown Cl UOMOlfJO o Unknown. o unknoWn o Unknown o UnknP'lln 8, c. o Unknown o Unknown o Ull~ o Unknown o UnknoWn D Unkrown E1 Unknown ~ ~A ~ [JNA DNA B"NA e(NA -----rIT 3 4 4 4 4 4 4 4 4 4 ,4 5 5 5 (; {5 5 5 5 6 5 6 G 6. 6 6 6 6 6 6 5 7 7 1 7 7 7 7 1 ? 7 e e a 8 a e e 8 e a 9 9 8 S 9 9 iJ g ~ 9 10 10/16/2008 11:37 t..:." I ~~ 541:2451989 CCITTAGE INDLSTRIES PAGE 02ie7 , 3F~15~ P~ajle ~~ ~ f9l)Qyt1ro 100n, l;)p rot leave any SfJa",.e5 biank.. Please n!~r to tte una nuMber-(S) ef the questbn(s) wf}er. you provide your ~.xpIanation(s}. If you are not .c~iming an ~n or ~ng to provide .u~ ferr.ft UAder OR$ 100.4'75 (4), YOu ShOOd date and sQn each page of'thiS dlsc~e statement and ~('Jl attac-.nment Each ooll9r of residential. property df!$Clibed in 008.1 05.4S5, must ddM:ir ~h~ f9m1 t9!-~~ buyer who mi'ke5 a wrltt$n otfl#.r to plJrOtia...~. lJn(ter ORS 105.4"5 (4)i r~fv~ WProvidQ.this form glves tOO bW~ ~ ~ t9 r~~ 1heiroffar at any time prior to ~ ttle transactIOn, L1se er# the s~on(s) tithe iorm ~ apply to th~ 1mnsaG1ion fQf whi~J). ~ fi>ml is. used-. Jf ~ ere daiming ~n $xdus.'an undsr OR$ 105,410, flU out OAly Seclion1. An exdusion may be claimed only if "9 seller q~a1iftes for the exclu$ion under the law. If nQt excluded.1heseflQr must ~ff~- 1M wooition $)f the- p/'q)erty or the. buYer may revoKe their offer to purchase anytime nr\oI:ta c{o$io~ tt,e.1ransacOOn. Questions regarr;tlng ~~~!M oonsequenoes of the fde($ ct-1Oice sheufd be.directed 10 a que.lffied. attorney. DO-NOT fIll OUT TH5SECTfON'UNL~ YOU ARE CLAtMfNG AN EXCLUS!ON UNbeR ORS tOO .~ 1f Section 1. EXCLUSION FROM ORS 105.465 iO 105,490' 'i' You may claim en exckr.1ll;)n vnoer ORS, 105.470 omy If you qUalify under the ~l~~t~; Ir ~ ;y~ not daimintl an e 1 ~ f9rrr' Q9rnp~ly. 1; J . alon!' l' 1! 1t 1~ 11 1l 2t Seller' Date Sigflsturt(S) of Buyer($) .Ael(no~lng Sellefs Claim ~Seuer Oate *" 2' ~; Buyer Date .. Buyer D&te ,..oIfo 2~ . - . ., ..... ..... IF YOU DID NOT CLAIM AN QClUSION IN sECnON 1, YOU MUST F.lu... OUT THIS SECTION. ~ Section 2. Seu..ER'S PROPERlY DISCL.OSURESTATEMENT 2~ {NOT A WARfWffY} {ORS 105.465} 2e N9TJcg TO, THf; SVYE.R; TH.~ FOl,.ltrO 27 PROPERTYLOCATE-D-AT 2f DlSClOSURES CONTAINED IN rHlS FORM ARE PROVIDED BY THE SELLER ON. TH~. BASJS OF SELLEn'S ACTV.~ KNQW1..EOGe.. OF THE 2f PRQPERlY A.T THE:. TlMf:l ~ DI$CLOSVRe.. e.UYE.R HAs. F.LV~ e.uSINESS DAYS FROM Tt:iE, ~~~t;.~.S DEUYERY OF THIS SELLER'S 3t; OJSClOSU~ STATEMENT TO REVOKE BUYER'S OFF.f.:R BY DEUVERJN9- f.!VYiR'~ SEPARATE StGNEr) \o\1fmTEN STAT!MiNT OF- 31 R~Qt"J\TJ9N. TQTHf SeLU;R PJ$APPR9VJNl) THe ~el.l&R'~ O~SClOsuRE'ST.~TEMENT. UNLESS aUYER WANES THIS RIGHT AT OR PRIOR a~ TO ENTERING JNTO.ASAlE AGREEMENT, . 3~ FOR A MORE COMPREHENSIVE EXAMlNATfON OF THE SPECIFIC CONDITION. OF THIS PRQPEil<1Y. BUYER lS.AO~l) TO OSTAlN AND. PAY 3!f FQR,1HE.. &~~'l.lCE~ QF.A. QVAL.IFIE;Q SPECIAWST TO INSP~C,T THE PROPERlY ON BUYER'S, StHAL.f INCLUDING. FOR: EXAMPLE, ONE OR 3t MORE OF THE J;'OlLOWING: ARCHiTECTS, ENGINEERS! PLUMBERSl E~9T~JC~. ROOF6R&. ENVIRONMENTAl INSPECTORS. SUllOtNQ 3E IN~P.riQTORS, CiRTW!.L;P HOME lN$J;lECTORS, o~ PJ;$T AND PRY .ROT JNSPECTORB. ~7 Seller 0 Is ~ not occupylng the property. ~{l llEl.I.ER ~ D;lje7-7"'O~ ~ SB.l.Efi._ DaI1>-E- e {)fQgOfi RcmI E$tat~ . . LLC" e.v 01100 No pomon may 00 ref)'Oduced without elCpre$S permission of Oregon Real e~ Fo.rms.. U.c LINES WITH THIS SYMBOL'" REQUIRE A SIGNATURE AND DATE i' BLtyer ~nitieJ$ ----!~.~~ OREF 02fM /~ 0/ 9'pr 111-- 10/16/2008 1i:3f CDTTAGE IN[~ISrRrES PAGE 31/67 --H {/l' 5412451989 rS:r ~~ LEAD..BASED PAINTdDlSC(LOSURE AODENDUlVt This AddenGuM must be part o1.very Real Estate SsI~ AgrNw..m far tlvi tale of B horn. ~nt prior to 1978. A phctocopy of the.. complet$d Ad&JtIdum tMY ba treated as an original. isADWARNING STATEM~ Every purchaur ()f sny infereif 11) I'H1deJJuaJ reslpropsny On whlo,~ B ms/dentlaf dwelling was buIlt plfor to 1971 /$ no.tifltl.d Ihllt. Such. properly may prnent exposure It> Iud from 1ead-ba~ paint that msy ~ young chi,." .t rl9k of developing fetJd pOj~"ms. L.fN1d polscming In ,.-oung chi!df'M msy ptodUCfi p4if'msnent neurotog;CIl1 flam.gtJ, Including I".rnlng dJSQbilltiu, feduo" '''te.l/~enc.. qCJDtlen~ behavio;a1 problems fH'td Impaired mfmory. Lead poi50ning a/$C1 pOm . ptfrtlcu18r risk to ",..gntnt W1.'tmm... ~ .rer 0' any Intetesf in resldentlll real property Is required tQ provide the buyer with any lnf0rm8ffon on Iesd-"'flfd paint h!lZSfds. fTDm risk a~nts or InspecliDna in the seIIe1's possesskH) and nofIfy the buyer Of 'ny mown IeMJ..bHed psll)t~, A.dsk.BSlHBment 01 in.pecfl(m fOf ptJ891bie ~ P8int hu;trd$ " ~omi'nelKlfJd prior to purchase. pROPERTYADDRESS $'"S'O ~ ~*--r'~ O~. ?7!22..0 ADDENDUMTO REAL ESTATE SALE AGREEMENT N . , SELLER'S DISCLOSURE 1, Presence of lead-based paint and/of lead-based paint hazards (chet;k either {a} or (b). below): (a) 0 Seller 11M knowledg~ of lead.based paint and/or lead'based paint hazards in the housing (explain). ~'." '.".~ .,.... ... ...~...- (b). []I"' . Selt~;r~knowledge of leacJ.based paint an;OJ IEtad-~d. paint hazards in ~t.J$ing.. 2.. RE;lCOrds and r~port$ available to the SeUer (Qt\eck sittler (.) or {b) belQw):, (8,) O. ~IEt( has provi<tfl.d.the.. B.uyer. with. all ayai.Ii;lQIe. ~f}.and mportsJJertaln\ng. to lead-based paint aAd/or lead-based paint ~rds. in the, hQu~iog (Ii~t ckm~ment. beJQw):. ... (b) [9" Seller ~ records or reports pertalnln9 to lead'!'basedpalnt and/Qr 1$,ar;;H.>ased paint. hazards. tn the housing. aUYER~S-ACKNOWLEDGMe.Nt (10mal below) 1. ....--BUyQf has received copies. of alf information.ll~t~ at 2(a) .above. 2, _elJY~r ha$. r(lceived the pamphlet PR;JteCf YO<<,- Faml1y fromLesd In ~ur Home, a, Buyer has (oo$~k $Ith~ (_) or. (b) btJcw) (a) 0 Pumuant to tile. prQ~ons contained. in the.1-sad Based Pa!nt Inspection" ~Qtk>rt.of- ttle R~l Estata Sate Agreement. rooeived.a 1 O.~ QPPQn1Jtl~' (Qr mytYmJy. @gre~ 'J.JfJQn period) t~ t::onduot a risk assessrn8f1t or'inspection for the pr~CQ Of .Iee:d-basad palm and/or lsad~asf)d paint hazaroo: or {b.) 0 WalvmJ.lha wpm1unDy to POOdoot a. rlak. asses$l'nent or inspection for the presence of ~ad..based paint an11l61l fM~ based'paint haZerda, AGENT'S ACKNOWLEOOMEN-T {Initial beHJw} ~ SeUef's Agent-has- informed the- selJerof' tile- seller's obligations under 42 use. 4852d and is awar~ ol t'l~lhef responsibility to - ensurs romplianee. CERTiACATtON OF- ACCURA-CY . The 101lOWlng p~ss h<<w reviewed tri$ inftlrmtdtO.rt abOV$ arn.t tEirtify. to tt1e bOOt of tI'1etr f<f10Wleage, tM:t tha information they have pl'tNl<f<Kt IS ttUti and aOOlJt'S.w. evy~r t3Uyef Setling licensee SetUng Him Date ~".,.... .... +- ... Om~ _____ Qa.te. UNES WITH THIS SYMaoL..... ReQUIRe: A SIGNATURE @ (Jf'(locm Paal' Es!ate Forms, u.c' 07102.. OREP'021 NQ portion.may. be I"l'WfQ~. MI~,texpre88~rm~~.o{ 01~goo. A~.e~J.~ ~J'l'n::l. LlC irT 1 a 3 4 5 6 7 8 9 10 11 1'2 13 14 16 16 17- 18 19 20 21 22 23 . 24 25 ~ 27 28 29 30 91 32 33 S4 35 36 37 38 39 40 41 -42 43 from:Penny Colvin 541 482 0046 10;16/2008 22:46 #058 P.001/00l frufi<FeliffY Cohiln l,nSl2aeff 12:34 541Ut51ge~ J.UI LoJl "'VU? -."c;. """ ""-~"'_4."''''.. &J::f...t:i ti~ fiil: t~ nati.:. 541 482 0046 10/16/2008 21 :08 1056 P.002/002 -oonAQ:: t-NtU;1'RtS WVlt .~ ...~.............. lA*~s~ ':,c :.....~~.I : ~~. PAGE 02192 ~......... -"'-"-h,. ~.~~ Biln... ....WUP. ...... die.... WItJi ..V...i'L....~~~Ap~'~-.~ '~. ~0Jr-. '. < : - _~ .' . TO~M.,..~1iiI4 Tn LJki......k~_.~.~..C8: SGGtiaa24.:.c-~~"""""~ ....--., '*'e.eftt. ....lC6.. ~ ' L . ,~ . Tt:$~U~.FI~~~~ 'latf:1we... ~~-~ 'to.. ,,' rcl"iraSa. "........W-t~~~-#o-Gf..66f~__ot_~ta S~4n~.. 'r" , 1 ' 1'htJJu)w....~..JlM'f-tf....I.8~....'.w JlIl!lt~'" .......,dIo~~ 1!lt_.wm'*...............U...f~.~.,~ ~(1:ron)........~. BUD....._......... audat\r1DIbi..~u-'.. .'""", ~. ::=.:r=.----..~-......~Wn.. ~ J. .... 5. 6~ 1lUll..~.....'*~tiM,,,........ ......,...'\_lIa~ ....~.... .....,-.....~...... 11I'....."....,.... fa ~...,f~nittnl,A!ld._......1'ropIItJ AQquItJdtaNkd.Acitl 1m (lJIAb....,...law.~ft.....~l~. , 1. Jt~...~lr~.,. tIoib... _ ..,..di_m......... tD..... ,the~. ' /~ .~ kIt, ~"__ ~'i .' ,~ ~. a~ ~/ ~.~ ..~" .-" l P<fI Boys" .... /:a/IS- ( d& r 1 ( l .J. U I ...,~ IT 6" lot"l Jo.r<:: _ 11. II ~ . . . ., . . . -, ~ "':.l ..\ . ,'''. - .. '. . . , J.~I~J::n~ f1>.I..IMnu~WO..f'" b~:M fo~~-~~"r ----rr- T Action Building 416 Ardmore Ave Medford, OR 97504 840-3574 CCB# 130942 Estimate Date Estimate # Ion /2008 2070 Name I Address I 850 Cambridge Ashland. OR 97520 Ashland Supportive Housing Description Qty Rate Total Concrete ramps and Patio demo and reinstall new 22,235.00 22,235.00 Remodel hall bath, windows, fire sprinklers. water meter, handicap 26.340.00 26,340.00 shower, ADA upgrades, new floor coverings for entire 1120 sq ft. Garage conversion; 2 bedroorm, 1 special tub in new wet room, 1 36,608.00 36,608.00 laundry area, includes floor drain in bathroom, move furnace and water heater to new location. . Estimate is good for 30 days fran date on proposal. I Total $85,183.00 Signature Phone # E.mail 840.3574 actionbuilding@charter,net '"T- ";:lto- ~ ~ ~ ? ~ D ~ o ~ ; ~ 1 -.5 , ~ r D '\ '\ ~\ I ~ ~ .& 1 -> ~ "..-. ~ -.---,-.-.-.... .-,-------- - ! [\ ,~ 4J ~---\-.---.-_.-.-9----. ~ j..,--------I.I --I r---------i__. I /' \ C:!. I j I,} 1/1 \ !1 'j- - ~ I), ! I ~\~ ~~C\j ~ I I ~ ) 4 . oCt. _ ~ I~r-:- \ ~ G----<'l \1- \ \ ')l ~ \& ~ C3. e (\ :?\ ; .--- ct_- u .. bl , I I 1\ I I l i ~ l. \ ~ ~ ~ i <: 1 )... J ~ L~_ ___1 t ~ ~ t'l Q. ~ t;S.\ 1- \---.l \.-J t ~ I I tU .J ~ ~ () \- 1- ~ o ~ to' (t>. () ~ ~ r;o o 1\, ~ 4: l- i S 1/1 "j. 4= <c" ~ \- · n ~ ~~ ~Oo ~ fI) t<) ~ ti" C:J ()Q ",J ~ :::: ~ " . w:-. () ~ ~r.o~ ~ 'l:~ -~~ t.o~~~ ~(\~~~ )t.. VJ (j }ol. .:> lli~{J\\J.::t ~~-~-- /r--~..-. ( f~r- J t~l t:. ~.l ~ ~~ ~~ ~ {,\, . d)- t I \. I >>"; ---I' \ ~ ~ ,,- ~. :' ~ 4:. t .,.. ~ to ~ ) "d- ID "> r;. --) ~ ~ I ~~~1 \flt ~ ! i . ~ I I U I ~ M I> ~ l~ \J ~ t ;"- '\.t~ . ~ v '< (\ '.J j I ! j rl- ! '~I 1 J ==-1 -. --::..- I I :~ "z.. t~ 1 \)) ~) l ~ "t.! \:. ~:. ~ <[i U} ~j f~ I f.,);. -J \ ~ ~Q:) \}) ~~:JI - ~ c.f ~(~ ?/71:1't?'} '\. \ t 1'- 4. t >-- I \'\'h .-.L ~ ~- II "'_'. ~ .......,<.>9. l }:()'\ 0 . ~ ~~~ )-L." :1.. II. . ~-l ""> ~ ~. r;; ~ ~ ~ o.-~ <0$\ 0..;" ~ --;v~ I I I tl ~ I ~r ~, J .~ ~ ~) ~\.!- bl ~ --~'~l ~--_.---~\ LJ I~ I I \~~ j I c ll~ a [! I L. -t,;..J.! 11 ~ "':>1 ~ \l P J!w ~J 1 ~ i ; I c9? t I, < I , . -'J~-""---c::::.-""1'--':""_'~-'::::: :;. ~ ~ ?", ~\> ~wo,."".~~.':~.:..~ ')I. ~ C> ~I I 't. €> J ~.,.~ \ I I t M \..1\ ~~ I ; r- ~ ~ '- ol <t <} Q tt~ ~\I.) ~ V) ~ ~ g ~ \U ^~ t'..j ~ -..... ~:tt- .. .. ... " t- ~ ^ ~ ~ -u ~ '"'T'- -1 'I) Q.. ~ ~ ~.~ <( ~ ~ .,~ 4: "l- Q. ~ ~ \- - It) r) t ~ () \. \ ~ .s- ~ ,'l.) V) q: ~ ti ~..- ODe 00 \b\,u ~ () - ~ ~ w., ~ - <t <l: o co N" Q. ~ C'!. ~~~ u') ~ '~E O~~~~.s ~ "r-~'t ~ ,,+... 0.; ~ IliJ .~ ~ ~ ..... c.. c'2 C> ~ cO-! () ti \J) t'- <I' ~----'-IIT PETER BUCKLEY State Representative Majority Whip D istr;ct 5 Committees: Chair: Education Committee Vice-Chair; Elections. Ethics and Rules HOUSE OF REPRESENTATIVES 900 COURT ST NE ROOM SALEM, OR 97301 Member: Transportation October 14,2008 Dear City of Ashland: I am writing to offer my strong support for the application put forth by Ashland Supportive Housing for the City's grants for Affordable Housing projects. ASH is a vital partner in long-term housing and care for Oregonians with developmental disabilities, and is an organization our city and our state can be proud of. There is a huge unmet need for quality affordable housing for this population. Two of my sisters-in-law have developmental disabilities, and I have been actively involved in this area for several years prior to my work in the legislature. But it wasn't until I began working as a state representative that I began to see how pressing the need for quality housing of this kind in the Rogue Valley and all across our state has become. I have toured facilities throughout Oregon, and I can say without hesitation that ASH ranks at the top of the list for housing and services. Assistance from the City of Ashland that would allow ASH to expand its services would be a tremendous benefit to individuals and falnilies in our region. The challenge to find long-term housing and care for this population is a hard burden on aging parents, and the quality of what ASH offers is a godsend to these families. In addition, the expansion of ASH's capacity would result in the creation of 12 new living wage jobs in OUf city that would not be dependent on the vagaries of the economy and would serve a clear and greatly needed social purpose. I see this as an excellent investment across the board, and I hope you will give full consideration and support to this proposal. Sincerely, Rep. Peter Buckley Office:. 900 CourtSt NE, Salem, OR 97$01 . Phone: .503.9Se, 1405 ~Jep,peterbuckley8'stat9.or.us. Fax: 503.986.1294 Di$~rict:'710eVle}r St., Ashland, OR 97520 ~Phone:' 041.4$,9180' info@petemuckley.org . IIT~--- Department of Health and Human Services Developmental Disabilities Tony Mendenhall, B.S. Program Manager 300 West Main Medford, Oregon Phone: 541 774-8205 Fax: 541 774-7978 mendentl@jaeksoncoullty.org To whom it may concern: It is my pleasure to write this letter in support of Ashland Supportive ~ousing (ASH) on behalf of Jackson County Health and Human Services, Developmental Disabilities Program, As you may know, ASH has been a long-time provider of residential services for people with developmental disabilities in the Ashland conununity. They are a community organization in every sense of the word in that they are managed locally with a Board of Directors further consisting of local, longtime residents of Ashland. Currently, ASH is supporting 15 significantly impaired individuals within three five-bed group homes in Ashland. Many of those persons they serve had previously resided within the Fairview training center. In the process of closing Fairview in the 1990s, this organization answered the call and accepted the responsibility to return people to live in their own communities. Today, however, as we all do, the people they support are aging and experiencing increased medical needs. The houses that were once meeting the needs of these folks in their youth no longer suffice. They are consistently requiring more medical care and housing adaptations to accommodate things such as medical beds, wheel-chairs, adapted bathroom facilities etc. Sadly, due to the increased support needs it has become nearly impossible to maintain these people in Ashland let alone within Jackson County as the current homes exist. In conversations with ASH, it is the goal of this organization, as well as Jackson County Developmental Disabilities to keep people living in their own community. ASH is seeking much needed funding to expand their services to include a fourth home which will allow them to support individuals in Jackson County with significant medical needs. In preparing this letter of support for ASH, I have done some research. The records that we maintain on those individuals served by our department indicate that we have only 66 individuals currently residing within Ashland. Of the 66 people we serve in Ashland, 57 are adults while only 9 are children under 18. Of the 57 adults who currently live in Ashland, over 80% of these folks are also employed in the Ashland community, 28 live in residential group homes and 3 live in foster care. Just for information, we are currently supporting 800 people in Jackson County as a whole and expect this number to increase by nearly 10% over the next biennium. Another note of interestt Jackson County currently licenses 30 adult foster homes and soon to be 20 children's foster homes within Jackson County. Of those 30 homes there is only one adult home and one children's home currently licensed in Ashland, meaning that if residents who wish to make their home in Ashland, but require a foster home level of support, they are out of luck. This office has long been concerned about the amount of services available in Ashland for people with Developmental Disabilities and I would surmise that the cost of housing would be prohibitive to families living there as well as those that might wish to provide foster care. I was amazed when looking at this datat given the history and values of diversity within the community of Ashland. I respectfully request that you closely review and consider this request for funding for ASH and help us strengthen the support system for people that want to live in their own community. Sincerely, Tony Mendenhall rruT October 13, 2008 Rosemary Dunn Dalton, LCSW Psychotherapist Consultation & Supervision (541) 488-2637 208 Sleepy Hollow Drive Ashland, Oregon 97520 To Whom It May Conceln: Re: ASH Community Development Grant Application . It is a pleasure to write this letter on behalf of Ashland Supportive Housing and Community Outreach, Inc. (ASH) which has been serving developmentally disabled adults since 1982. The ASH program has sustained many stages during its years of impo11ant services to the most needy of our citizens. The program has provided housing, advocacy and outreach services which initially began with one house, then two, now three. This program has a vital and stable history which qualifies it for competition for this community grant. This request is for funds to provide services for a medically fi-agiIe clientele - individuals who need residency and medical monitoring. ASH is again willing to work with people who are often overlooked and who meet high needs tests. It is my hope that this letter has been helpful in your deliberations. \ Sincerely, ~UilJ ----------" T-- CITY OF ASHLAND Council Communication Resolution Authorizing the Issuance of $2,500,000 in Wastewater Bonds Meeting Date: November 18, 2008 Primary Staff Contact: Lee Tuneberg Department: Administrative Services E-Mail: Tuneberl@ashland.or.us Secondary Dept.: None Secondary Contact: None Approval: Martha Bennet Estimated Time: 10 minutes Question: Will Council approve a resolution authorizing the issuance of Full Faith & Credit bonds up to $2,500,000 to fund wastewater system improvements? Staff Recommendation: Staff recommends approval of this resolution and publication of the notice. Background: Attached is a resolution authorizing staff to take the necessary steps to issue Full Faith and Credit (FF&C) Wastewater Bonds for capital projects approved during the Capital Improvements Plan (CIP) reviews and budget processes over the last two years. Market conditions, constraints within the Wastewater Fund and the existing DEQ loan make it advantageous for the City to use its Full Faith and Credit ability to minimize the total cost of this financing. A FF &C issue is a General Obligation of the City payable from any legally available sources of revenue. The amount identified on October 20 for Wastewater projects, including reimbursement for work already done, was approximately $2,125,000. Since that time staffhas discussed the sale and challenges in today's municipal bond market with the City's Bond Counsel and Financial Advisor and current industry conditions could cause the total amount for revenue bonds to increase to $2.7 million or more. This approximates the amount originally budgeted for FY 2008-2009 but the difference in annual debt service could be in the $50,000 range. FF&C bonds will be less costly than revenue bonds and will be better received in the market. In the past, the City has purchased insurance to provide surety coverage but companies providing this coverage have been downgraded in the markets and this option is no longer available. Instead the City will need to have cash deposits equaling one year's debt service in reserve. This issue would require a cash reserve of about $250,000 for these bonds alone. In comparison, the cash reserves maintained currently on the DEQ loan is $1.7 million resulting in a total of nearly $2 million for debt service in this fund. The maximum amount approved for Water bonds at the November 4th meeting was $5.975 million including nearly $900,000 for required cash reserves. Thus, changes in the insurance market that now require cash reserves and required debt coverage have increased our total maximum amount from $7.1 million to almost $9 million. These new amounts will affect the rates charged to our customers and potential future increases. This is a maximum and a FF &C issue will lower this total. Page 1 of3 ~~, ~~_M-~,r T CITY OF ASHLAND Regardless of the type of bond, the city will first look to the Wastewater Fund revenue to pay the debt. The actual amount for the bond issue will be less than the authorized amount but the actual total will not be known until the day of the sale. There is no guarantee on the issuance of bonds but a FF&C issue has a high potential to do materially better than revenue bonds when we get to the market in February or March 2009. Other considerations for a successful bond sale will be who we are competing with in the market on the day of sale, what buyers will be there looking for municipal bonds, current interest rates and the level of confidence in the economy at that time. The Wastewater Fund does not have enough cash to set aside another $250,000 to meet bond covenants. It is not unusual for agencies to borrow the reserve, especially when they do not have sufficient cash balances to meet the obligation. The cash reserve becomes part of the bond issue, and when proceeds are received, the cash is restricted in the fund until the final payment on the bonds it guarantees. The alternative to borrowing the cash reserve is to save up or divert the amount needed which will either affect other operations or take time. More important is that revenue bonds would require an immediate rate increase in the 10% to 15% range to meet coverage requirements, even with such large cash reserves. Subsequent increases probably would not be that high but coverage and ending fund balance would be critical targets that will drive rate increases into the future. In addition, to sell revenue bonds cost effectively, the City would likely need to get DEQ to agree to subordinate its loan to the revenue bonds. These rate increases are so high because of the following reasons: 1. Revenue bonds require coverage (ratio of net revenues to annual debt service) of 125%. 2. The DEQ loan requires only 105% coverage but debt service coverage on the new bonds would be at 125% coverage. 3. Food & Beverage (F&B) Tax proceeds to the Wastewater Fund do not pay all of the DEQ loan annual debt service which means the difference comes from rates. 4. The F&B tax will sunset in December 2010 so bond issues today cannot rely on that as a continuing revenue source. Absent this revenue stream, rates would need to increase approximately 60%. 5. A revenue bond sale is more costly than a FF&C issue thus raising the total amount financed and, in turn, the annual debt service. The drawback to Full Faith & Credit bonds is the potential pledge of other revenue streams (including taxes) to repay the loan. This requirement could impact future FF &C borrowing by reducing the total amount available by this $2.5 million. This is a general pledge that would become an issue if the wastewater rates could not pay the debt service. The attached resolution includes a 60 day notice similar to what is required for revenue bonds. This notice is not required for FF &C borrowing but helps to ensure openness of this financing. In the meantime, staff continues to actively seek other State or Federal monies to fund our wastewater system Page 2 of3 r.l' ~-~--_...~--_.._---_._-~--------------------_._"-Ir. ,. CITY OF ASHLAND improvements. If a good alternative is found we would be back in front of Council proposing another solution before issuing these bonds. In summary, staff prefers to finance enterprise improvements via revenue bonds but issuing Full Faith & Credit bonds is the least cost approach to funding needed capital improvements for the Wastewater Fund. They are less costly to issue than revenue bonds, their interest rates are lower, borrowing a cash reserve will not be required, they will not require a high or higher coverage ratio than the current DEQ loan does and these points translate into lower annual payments. Related City Policies: City of Ashland Financial Management policies Council Options: Council may proceed with issuing bonds to fund the capital improvements in the Wastewater Fund or defer action for more information. If the decision is to not issue bonds then other means to fund existing and past project costs must be determined before any more project expenditures are made, bid awards are let or capital projects that are not 100% SDC funded are begun. Potential Motions: Potential motions include: A. Council moves to approve the resolution to issue bonds and give sixty day public notice. B. Council moves to approve the resolution as modified by discussion. C. Council takes no action pending further information or clarification. Attachments: Draft Resolution October 20 Council Communication Preliminary CIP Page 3 of3 r~' r,T RESOLUTION NO. A RESOLUTION OF CITY OF ASHLAND, JACKSON COUNTY, OREGON, AUTHORIZING THE ISSUANCE OF BONDS TO FINANCE WASTEWATER SYSTEM IMPROVEMENTS IN A PRINCIPAL AMOUNT OF NOT TO EXCEED $2,500,000, AND PROVIDING FOR PUBLICATION OF NOTICE BE IT RESOLVED by the City Council (the "Council") of the City of Ashland (the "City") that: Section 1. Findings The Council finds as follows: 1.1 It is financially feasible and in the best interests of the City to authorize the issuance of bonds under ORS 287 A.I50 to finance wastewater plant improvements, pump stations and wastewater line improvements and realignments in cooperation with other projects (the "Projects") and to pay related costs. 1.2 The City is authorized to issue bonds for any public purpose under ORS 287 A.I50. ORS 287 A.I50 requires the City to publish a notice describing the bonds and the revenues that will secure the bonds. 1.3. ORS 287 A.I50 allows the City to secure bonds issued under the act with any revenues of the City (as defined in ORS 287A.00I(16)) that are described in the notice that the City publishes pursuant to ORS 287A.150. ORS 287A.00l(16) defines "revenues" as "all or any portion of the fees, tolls, excise taxes, assessments, property taxes and other taxes, rates, charges, rentals and other income or receipts derived by the City or to which the City is entitled. 1.3 It is desirable to obtain $2,500,000 of bonding authority to finance the Projects pursuant to ORS 287 A.I50, and to allow the City to secure those bonds with all or any portion of the City's revenues, as defined in ORS 287A.00l(16). Section 2. Bonds Authorized The City hereby authorizes the issuance of not more than Two Million Five Hundred Thousand Dollars ($2,500,000) in aggregate principal amount of bonds pursuant to ORS 287 A.I50 to finance the Projects and pay related costs. The bonds authorized by this resolution (the "Bonds") shall be issued and sold in accordance with the Act, and shall be payable from the revenues of the City which the City pledges to pay the Bonds. The City may provide that the Bonds will be secured by all legally available revenues of the City. The City may pledge its full faith and credit to pay the Bonds, and may pledge its taxing power within the limitations of Article XI, Sections 11 and 11 b of the Oregon Constitution. Section 3. Notice; Procedure 3.1 No Bonds may be sold, and no purchase agreement for the Bonds may be executed, until -----------------------.-------------II-T at least sixty (60) days after publication of the Notice of Bond Authorization which is attached to this resolution as Exhibit "A" (the "Notice"). The Notice shall specify the last date on which petitions may be submitted, and shall be published in at least one newspaper of general circulation in the City in the same manner as are other public notices of the City. 3.2 Ifpetitions for an election, containing valid signatures of not less than five percent (5%) of the City's electors, are submitted to the City by the date indicated in the Notice: the question of issuing the Bonds shall be placed on the ballot at the next legally available election date; and, no Bonds may be sold until the question of issuing those Bonds is approved by a majority of the electors of the City who vote on that question. If sufficient petitions to refer the question of issuing the Bonds to the electors are not submitted to the City within 60 days after the notice is published the City may sell the Bonds pursuant to Section 5 of this resolution. This resolution was duly PASSED and ADOPTED this 2008, and takes effect upon signing by the Mayor. day of Barbara Christensen, City Recorder SIGNED and APPROVED this day of , 2008. . John W. Morrison, Mayor Reviewed as to form: Richard Appicello, City Attorney ----------------11 T Exhibit A Notice of Bond Authorization NOTICE IS HEREBY GIVEN that the City Council of the City of Ashland, Oregon (the "City"), adopted Resolution No. on November 18, 2008, authorizing the issuance of bonds to finance wastewater plant improvements, pump stations and wastewater line improvements and realignments in cooperation of other proj ects and to pay related costs. The bonds described in this notice will not be issued in an aggregate principal amount of more than Two Million Five Hundred Thousand Dollars ($2,500,000). The City may provide that the bonds will be secured by all or any portion of the City's legally available tax and other revenues, and the City may pledge its full faith and credit and its taxing power within the limitations of Article XI, Sections 11 and lIb of the Oregon Constitution to pay the bonds. However, the bonds will not be general obligations of the City and the City will not be entitled to levy taxes outside the limitations of Article XI, Sections 11 and 11 b of the Oregon Constitution to pay the Bonds. If written petitions requesting an election on the issuance of the bonds, signed by not less than five percent (50/0) of the City's electors, are filed at the Office of the City Recorder on or before ,2009 (the 61st day after the date of publication of the notice), the question of issuing the bonds shall be placed on the ballot at the next legally available election date. The Office of the City Recorder is located at 20 East Main, Ashland, Oregon 97520. The resolution authorizing the bonds is available for inspection at the Office of the City Recorder. The bonds will be issued and sold and this Notice is published pursuant to ORS 287A.150. By order of THE CITY COUNCIL OF CITY OF ASHLAND, Jackson County, Oregon -liT CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dept.: Approval: Study Session on Capital Improvement Financing for the Water and Wastewater Funds October 20, 2008 Primary Staff Contact: Administrative Services E-Mail: Public Works Secondary Contact: Martha Bennett Estimated Time: Lee Tuneberg tuneberl@ashland.or.us Mike Faught 45 minutes Question: Does Council have questions regarding pending financing of capital proj ects? Staff Recommendation: Staff recommends Council discuss and ask questions about issuing bonded debt to pay for current capital projects and those scheduled for the near future. Staff recommends an item to authorize staff to sell bonds be considered at your November 4th meeting. Background: The FY 2008-2009 budget included over $9 million in external financing that related to capital improvements approved within the Capital Improvement Program (CIP). That amount was intended to do three things: . Reimburse the city for money "up fronted" for projects under way . Finance projects starting in 2008-2009, extending into 2009-2010 . Pay for capital improvements over their useful life with annual debt service This amount was predicated upon approximately $3.8 million in financing being done in FY 2007- 2008. The end result in financing during last year was issuing only $304,000 in Clean Renewable . Energy Bonds (CREBS) rather than the $800,000 that was originally projected. The other $3 million was intended for the Water Fund but could not be done before the end of the fiscal year. A review of capital financing done by the city in the prior five years to the CREBS issue is as follows: 2003 Water Revenue Bonds at $5.625 million for capital projects & refunding bonds. 2004 AFN refinancing at $15.5 million and Airport Hangar financing at $375,000 2005 General Obligation Bond refunding the 1997 and the 2000 bonded debt at $2.56 million to reduce payments and save interest costs. 2006 No activity 2007 No activity In most years the anticipated borrowing is less than what was budgeted due to timing and completion of projects. The amount needed to pay for capital projects is first reduced by restricted monies held for applicable projects such as systems development charges, grants, local improvement funds or other miscellaneous proceeds. Only the net amount is borrowed for the projects scheduled for completion. Page 1 of3 r~., -Tf-T CITY OF ASHLAND The attachment lists projects by fund, their approximate timing, total cost and amount that would be funded by rates & fees, directly or through debt service. Many smaller projects in the CIP are omitted in that they do not readily qualify for financing but they will still need to be funded annually through rates and fees. Below is a summary of the projects for two years and those that the city still needs reimbursement for to restore operational fund balances. FY 2008-2009 Prolects Water Supply projects Water Plant proj ects Water Distribution projects Wastewater Treatment Plant proj ects Wastewater Collection projects FY 2009-2010 Prolects beginning this year or in process Water Supply projects Water Plant proj ects Water Distribution projects Wastewater Treatment Plant projects Wastewater Collection projects TOTAL TO BE FINANCED $335,000 $62,500 $1,406,250 $300,000 $283,000 $538,000 $21,250 $1,887,250 $365,000 $610.250 $5,808,500 FY 2007-2008 Prolect (Completion & Reimbursement in 2008-2009) Water Treatment Plant Process Improvement North main Pump, Neil Creek Flood, & others TOT AL TO BE REIMBURSED $548,000 $566.000 $1.J 14,,000 ANTICIPATED REVENUE BONDS $6.922.500 The above projects represent a total CIP value of$10 million. The remainder of the project costs are paid primarily by systems development charges. The reimbursement portion is approximately $1.1, which will replace operational cash used for the project(s) while financing was put together. The debt service on the $6.9 million represents approximately $555,000 in annual debt service (principal and interest) between the two funds until 2029. As discussed in previous study sessions the total CIP represents rate increases of 1 % to 20/0 each year of the total utility bill until older debt is retired. In these two funds this additional debt service would represent approximately 5% of annual operational cost. It also represents about 7.5% of annual charges for services during the first year and reduces to about 4% in the final year of the bonds. Existing revenue bond annual debt service is approximately $540,000 in 2009 and reduces $170,000 in 2012, another $220,000 in 2015 with the final amount paid in 2022. Page 2 of3 r~' Trl CITY OF ASHLAND Issuing revenue bonds for these capital improvements is the normal approach to paying for infrastructure, especially since the debt service is paid over the life of the bonds by those who are getting the benefit of the asset. If financing is not approved the city would need to stop capital improvements in these two funds until other viable CIP funding solutions were identified. Related City Policies: City of Ashland Financial Management Policies, Budget Document Appendix Council Options: Council can provide guidance to staff on what additional information is needed for approval to proceed with a bond issue. Potential Motions: This is a study session so no action can be taken. Attachments: Preliminary CIP listing (for financing) 10/10108 Page 3 of3 r~' --- -. -rr T 11/13/200811:17 AM Capital Improvements Plan (PRELIMINARY 10/10/08) FY 09 (JUL 2008 to JUN 2009) Construction __-1LQ&9~Q _~~2-QQO $420,000 uu$?~~~99.9. : Water Plant Plant Process 1m rov (chern feed, soda ash, instrumentation, flocculator) Water Treatment Plant - Construct New Filters 7 & 8 $0 ~~,~~._----.,~-,~,~, $21,250 .......$~.~.~~~9.: $0 ._._.~w~_~"_ $0 .....~.1.,.??2,292 ___~?J~?~_O $0 $0 . uuuuu..$.X?.Q?..QQ.Q. ~_____ $3 !2,QQQ $91,000 $1,887,2501 WASTEWATER Wastewater Treatment Plant Wastewater Treatment Plant Membrane Sections Re lacement Plannin Wastewater Treatment Plant Process 1m rovements .....$.~.QQ,Q.QQ. $65,000 $~~?,Q9.9. : Wastewater Collection S stem Wastewater Line Re lacement; Oak Street - Lithia Wa to B Street Wastewater Line Re lacement; Ashland Creek Main Line Wastewater Line Re lacement; Miscellaneous In-House Grandview Pum Station Re lacement Wastewater Line Reali ment; N, Mountain Ave - Herse .~,. . ......uJ~4,Q.QQ ...$!?Q.'Q.QQ .__.2LQ~2~.?g ~170,OQQ $100,000 $610,250: TOTAL WATER & W ASTEW A TER $3,010,000 $2,386,750 $4,460,000 $3,421,750 H:\ShipletD\Council\Council Communication\2008\November 17 and 18\111808 Wastewater Bonds.atch3.xls 11.- CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dept.: Approval: FY 2007-2008 Comprehensive Annual Financial Report November 18, 2008 Primary Staff Contact: Lee Tuneberg Admin. Services E-Mail: tuneber1@ashland.or.us None Secondary Contact: None Martha Benn Estimated Time: 30 minutes Question: Should the City Council accept the Comprehensive Annual Financial Report as recommended by the Ashland Audit Committee? Staff Recommendation: The Audit Committee recommends acceptance of the Comprehensive Annual Financial Report for FY 2007-2008 and staff concurs. Background: The Audit Committee has met with staff and Pauly, Rogers and Company, P .C. to review and accept the annual audit for the fiscal year ended June 30, 2008. The committee's report can be found in the annual financial report on page xv and the auditor opinion on page 3. The Comprehensive Annual Financial Report (CAFR) is prepared annually as part of the state-required audit by an independent, certified and municipally licensed auditor. In Ashland, the auditor reports to the Audit Committee established by the Council. The committee receives the auditor opinion, management letter and annual financial reports (including the Parks Commission Component Unit Financial Report) prepared by staff. When satisfied with the reports and related information, the committee forwards the report to Council with a recommendation to accept. The auditor gave an unqualified opinion again this year and found two reportable conditions to include in a management letter for fiscal year 2007-2008. The two conditions that the auditors noted are included in the attachment titled "Management Report." The Administrative Services Department's responses to the Management Report comments are attached as well. The issues raised are being acted upon at this time and our goal is to clear the comments in this fiscal year. The City, Parks, and the auditor faced new requirements for reporting last year and we are still working through some of them that have evolved from changes in the private sector precipitated by ENRON scandals and subsequent legislation like Sarbanes Oxley. These new standards for auditing and reporting are still being implemented through out the municipal sector as they are a challenge for all government agencies. The Management Report prepared by the auditor provides a review of the prior year comments and staff s report speaks to progress made on those completed and those still in process. Page 1 of3 111808 CAFR.CC.doc r~' U-i1T CITY OF ASHLAND The City dealt with the Audit Committee issues last year. Staff is working on more enhancements to internal controls and expects to submit to Council important policy changes and procedural documentation in late February or March. These changes will take a concerted effort by the Council, Administration, City Recorder and Administrative Services departments and will probably impact all departments and divisions. 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 5 through 16 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 Parks & Recreation information. From an overview perspective, the City's financial condition is down but still strong with total net assets decreasing $4 million to $101,364,054. The primary issue lies in reduced cash balances due to capital expenditures while financing has been delayed. The City has considerable cash balances but their accumulations are spread over the many funds and much of it is restricted to guarantee future debt payments and capital construction. Rebuilding operating cash balances while paying for needed capital improvements and repairs will be difficult. Total City assets are down $5.9 million which includes: 1. $4.48 million less in cash & investments (a minus) 2. $700,000 more in restricted cash (a plus) 3. $100,000 more in inventories (a plus) 4. $125,000 less in deferred revenue (a minus) 5. $4.33 million more in fixed assets (a plus) 6. $6.38 million more in accumulated depreciation (a minus). City-wide current payables (liabilities) are flat at only $7,000 more than the prior year. Accrued interest payable is up $43,000 and non-current liabilities (claims payable and debt) are down $1.9 million. The net result of changes in Assets and Liabilities city-wide is the approximate $4 million decrease in Total Net Assets for the City. In general, the City used cash to pay for projects (that added to net fixed assets) and debt service (to reduce liabilities). Please note thataging of city infrastructures (depreciation) was calculated to be $6.38 million and represents a significant element of the decrease. The Parks and Recreation Commission net assets increased approximately $864,000 primarily due to more cash on hand at the end of the year and a significant contribution (in the form of a new HV AC system to one of the theaters) from Oregon Shakespeare Festival. Page 2 of3 111808 CAFR.CC.doc r., ------------rr T CITY OF ASHLAND The financial report indicates the City is still strong but weakening as current assets (cash) are traded for long-term infrastructure or to reduce long-term debt. Many of the City's funds are doing well when considering fund balances. As discussed throughout the recent budget process, balancing revenue streams with the cost of services is, and will remain, difficult in funds reliant upon taxes (General, Street and Parks funds) and funds that include capital improvements funded through rates, fees, taxes and borrowing (Street and all enterprise funds). However, some funds have ending fund balances beyond targets and those "surplus" amounts will be needed to help the others in the short-term as capital financing is completed or revenue streams are adjusted. Changes in Ending Fund Balances (Adopted and Actual) for all funds can be viewed on pages 106- 107. Other key places to look within the document are: Pages 1 - VB xv 3- 4 5 - 16 19 - 29 33 - 60 65 - 139 141 - 149 Information Transmittal letter from staff Report of Audit Committee accepting the audit Auditor's unqualified opinion Management's Discussion & Analysis Basic Financial Statements Notes to General Purpose Financial Statements Supplementary reports, schedules and statistical tables Other required auditor comments and disclosures Related City Policies: City of Ashland Financial Management Policies, Budget Document Appendix Council Options: Council may accept the Committee's report and the annual report as presented, recommend modifications as discussed or defer acceptance (takes no action) awaiting further information or clarification. Potential Motions: A. Council moves to accept the Audit Committee Report and the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2008 as presented. B. Council moves to accept the Audit Committee Report and the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2008 as modified by discussion. C. Council takes no action pending further information or clarification. Attachments: FY 2007-2008 Comprehensive Annual Financial Report City of Ashland 2007-2008 Management Report Staff letter to Audit Committee dated 10/29/2008 Responding to the Management Report Audit Committee meeting draft minutes 10/29/2008 Page 3 of3 111808 CAFR.CC.doc r~' ---~------T1-,.- CITY OF ASHLAND ASHLAND, OREGON 2007-2008 MANAGEMENT REPORT -~--- rfiF]@ PAUL~ ROGERS AND CO., RC. CERTIFIED PUBLIC ACCOUNTANTS · 12700 SW 72ND AVENUE · TIGARD, OREGON 97223 · (503) 620-2632 · FAX (503) 684-7523 October 24, 2008 City of Ashland City Council and Audit Committee In planning and performing our audit of the financial statements of City of Ashland as of and for the year ended June 30, 2008, in accordance with auditing standards generally accepted in the United States of America, we considered City of Ashland's internal control over financial reporting (internal controls) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal controls. Accordingly, we do not express an opinion on the effectiveness of the City's internal controls. Our consideration of internal controls was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal controls that might be significant deficiencies or material weaknesses. In addition, because of inherent limitations in internal controls, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. However, as discussed below, we identified certain deficiencies in internal controls that we consider to be significant deficiencies. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal controls. The Auditing Standards Board issued SAS No. 112, Communicating Internal Control Related Matters Identified in an Audit, effective for audits of financial statements for periods ending on or after December 15, 2006. This statement requires auditors to evaluate identified control deficiencies and determine whether those deficiencies, individually or in combination, are significant deficiencies or material weaknesses, and if so communicate them in writing to those charged with governance. SAS No. 112 specifically identifies a few common control deficiencies which must be addressed in each audit to determine if a significant deficiency exists, and based on our evaluation we have identified significant deficiencies in the design or implementation of internal controls, which are noted below. We consider the following deficiencies to be significant deficiencies in internal control: 1) We noted that the Information Technology (IT) department does not have a cohesive written internal control document that details their internal controls over their internally developed utility billing system. We also noted that there was no cohesive written internal control document that details the general controls over all computers and systems City-wide. We recommend that the City develop written internal control procedures for these areas. We also recommend that that IT department have an external review of the processes and controls from an outside entity. 2) We noted that the Community Development accounts receivable detail contained many items which were either extremely old or items that have already been paid. We recommend that the Community ~ I I - Development Department reconcile and review their listing of accounts receivable and either write the receivable off because the item has been paid or follow up with the customer to obtain payment. The following are our recommendations for the previous year. The comments are repeated from our report to management for the year ended June 30, 2007, for perspective. We noted that the City does not have a written internal control policies and procedures document. In applying SAS 112 we believe that the City should adopt formal policies/procedures for all accounting areas, especially as it pertains to internal controls and the identification of key controls. Our audit did not uncover significant deficiencies pertaining to these areas other than the items noted below, however the policies/procedures in place are not in writing. We recommend at a minimum that the following areas be addressed (this constitutes a partial list, other areas of internal control should be addressed): o Controls over expenditures to ensure that there are no fraudulent checks or checks written in error - Who tracks the check sequence, who reviews the canceled checks back from the bank, who has custody of checks, and who is authorized to approve disbursements? o Detailed explanation of the controls over cash accounts, including how many people it takes to open/close an account, controls over wire transfers, and review of bank reconciliations. o Controls over cash receipting - How do you ensure that receipts are always given, and that all receipts are recorded in the general ledger. How often are deposits taken to the bank. o What internal controls and monitoring is used for reviewing and ensuring that the financial statements are accurate and are in conformance with GAAP (the control procedure here would be sending staff to training on new pronouncements, etc.) o Any internal audit functions, antifraud programs, etc. o Monitoring of internal controls by management and the governing body to ensure that controls are functioning properly and are evaluated when systems, the environment, and employees change. o Other areas that could be discussed - capital asset accounting, employee dishonesty insurance, physical security of documents, payroll processing/time sheets, and any other applicable financial areas. o Because of a limited number of available personnel, it is not always possible to adequately segregate certain incompatible duties so that no one employee has access to both physical assets and the related accounting records or to all phases of a transaction. Consequently, the possibility exists that unintentional or intentional errors or irregularities could exist and not be promptly detected. We recommend that the City address their segregation of duties issue in their internal control policies and procedures. During Fiscal Year 2007-2008 city staffworked on this comment by: 1. Met on numerous occasions to identify steps for improvement including consulting available documentation from professional organizations and associations. 2. Surveying representative systems for existing controls, related procedures and documentation. 3. Training on controls, development and use. 4. Updating controls where needed and documenting their improvement and use. 5. Makes changes in staff responsibilities and cross training to facilitate the improved c;ontrols. Upon completion of the audit City staff will return to this project with the goal of satisfying the comment for the FY 2008-2009 audit. A material weakness is a significant deficiency, or a combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. We did not identify any significant deficiencies that are considered to be material weaknesses: This communication is intended solely for the information and use of management, the Council, and others within the organization, and is not intended to be and should not be used by anyone other than these specified parties. PAULY, ROGERS AND CO., P.C. II I ~~ CITY OF ASHLAND October 29,2008 Audit Committee City of Ashland 20 East Main Street Ashland, OR 97520 Re: FY 2007-2008 City of Ashland Audit Management Letter The Accounting Division of the Administrative Services Department made tremendous strides this year in accounting for activities and preparing for the annual audit. I am sure that, if they could in the Management Letter, the auditors would speak to functional improvements and the greater preparedness that were experienced this year. However, Management Letters are geared toward deficiencies and not what is done right. Thus, the resolution of prior year comments and a reduced number of new comments must suffice as the indicators of improvement between years. As always, the Finance staff takes the management letter comments to heart and endeavors to address them in an expeditious manner. Even with that perspective, it sometimes takes multiple years to clear an issue and I want to assure the Committee that available resources are allocated to clear current and recurring auditor comments and observations, large and small. There are two comments For FY 2007-2008. The two comments are: 1. We (the auditors) noted that the Information Technology (IT) department does not have a cohesive written internal control document that details out their internal controls over their internally developed utility billing system. We also noted that there was no cohesive written internal control document that details the general controls over all computers and systems City-wide. We recommend that the City develop written internal control procedures for these areas. We also recommend that that IT department have an external review of the processes and controls from an outside entity. Response: Staff agrees with the Auditor's assessment. Prior Technology Plans and software documentation require updating and revision and the Technology Department is working on them. Some improvements in documentation were achieved in FY 2007-2008 but other process improvements should be complete in FY 2008-2009 including online payments. The points identified in this comment will be addressed as part of the new processes and documentation. An external review by an outside entity is appropriate and such a review will be included in the budget for FY 2009-2010. 2. We (the auditors) noted that the Community Development accounts receivable detail contained many items which were either extremely old or items that have already been paid. We recommend that the Community Development Department reconcile and review their listing of accounts receivable and either write the -Tr-T receivable off because the item has been paid or follow up with the customer to obtain payment. Response: Staff agrees with the Auditor's assessment. The City has systematically reviewed various sub-ledgers and dealt with similar issues or disconnects such as fixed assets, assessments, Municipal Court processes, utility receivables and miscellaneous payables. Such a task primarily rests with the department or division responsible for the sub-ledger activity but the Administrative Services will work with Community Development to accomplish this task in FY 2008-2009. The following are our (the auditor's) recommendations for the previous year. The comments are repeated from our (their) report to management for the year ended June 30, 2007, for perspective. We noted that the City does not have a written internal control policies and procedures document. In applying SAS 112 we believe that the City should adopt formal policies/procedures for all accounting areas, especially as it pertains to internal controls and the identification of key controls. Our audit did not uncover significant deficiencies pertaining to these areas other than the items noted below, however the policies/procedures in place are not in writing. We recommend at a minimum that the following areas be addressed (this constitutes a partial list, other areas of internal control should be addressed): . Controls over expenditures to ensure that there are no fraudulent checks or checks written in error - Who tracks the check sequence, who reviews the canceled checks back from the bank, who has custody of checks, and who is authorized to approve disbursements? . Detailed explanation of the controls over cash accounts, including how many people it takes to open/close an account, controls over wire transfers, and review of bank reconciliations. . Controls over cash receipting - How do you ensure that receipts are always given, and that all receipts are recorded in the general ledger. How often are deposits taken to the bank. . What internal controls and monitoring is used for reviewing and ensuring that the financial statements are accurate and are in conformance with GAAP (the control procedure here would be sending staff to training on new pronouncements, etc.) . Any internal audit functions, antifraud programs, etc. . Monitoring of internal controls by management and the governing body to ensure that controls are functioning properly and are evaluated when systems, the environment, and employees change. . Other areas that could be discussed - capital asset accounting, employee dishonesty insurance, physical security of documents, payroll processing/timesheets, and any other applicable financial areas. . Because of a limited number of available personnel, it is not always possible to adequately segregate certain incompatible duties so that no one employee has access to both physical assets and the related accounting records or to all phases of a transaction. Consequently, the possibility exists that unintentional or intentional errors or irregularities could exist and not be promptly detected. We recommend that the City address their segregation of duties issue in their internal control policies and procedures. ii i1T- Status: Staff has worked on this but it was not done at June 30, 2008. Staff reminds the reader to note that there are things being done within many of the "bulleted" areas but they are insufficient in practice or documentation to clear this comment. There is no single document that addresses all of the issues to the detail level identified within SAS No.1 12. During FY 2007-2008 various departments and divisions in City Hall began the review and accomplished some improvements but limited staff availability precluded expanding out to other areas. The City did establish better guidelines and controls for the audit committee and reporting responsibilities of staff and Parks as formalized by Resolution 2008-24. Recently, the City complied with customer information security as required by state and federal laws and those changes will be incorporated within the work done in FY 2008-2009 to comply with this audit comment. In summary, I hope these responses are helpful in understanding the work being done by the Administrative Services Department to meet or exceed City expectations and legal requirements. It should be understood that increased requirements such as those presented and discussed above will have a financial impact (staffing, workload and training) to ensure compliance. Sincerely, Lee Tuneberg City of Ashland Administrative Services and Finance Director iii --TIT CITY OF ASHLAND Audit Committee Draft Minutes October 29, 2008 2:00pm Council Chambers 1175 East Main Street Call to Order Lee Tuneberg, Administrative Services and Finance Director called the the Audit Committee meeting to order at 2:25 p.m. on October 29,2008 in Council Chambers, 1175 East Main Street Ashland, Oregon. Everson/Navickas ms for Nutter to be chair. All Ayes Roll Call Committee members Christensen, Emerson, Nutter, Navickas were present. Member Lemhouse was absent. Staff Present: Martha Bennett, City Administrator Lee Tuneberg, Administrative Services and Finance Director Cindy Hanks, Finance Division Manager Bryn Morrison, Account Representative Melissa Huhtala, Administrative Secretary Also Present was Kenny Allen, Partner, Pauly, Rogers, and Co. P.C. Approval of Minutes Audit Committee Minutes of October 29, 2007 Nutter requested that the committee members be given a copy of any reports and/or letters on significant deficiencies issued by the accountants, together with the staff's responses to those significant deficiencies, in advance of the audit committee meeting. Nutter indicated that he could do a better job if he was given the accountant's report and the staff's response in advance of the committee meeting. Navickas/Everson ms to approve the minutes as amended. All Ayes. ----rr ,- AUDIT COMMITTEE MEETING OCTOBER 29,2008 - PAGE 2 OF 8 Presentation bv the Auditors A. Audit 1. Component Unit Financial Report (CUFR) 2. Parks Management Letter 3. Comprehensive Annual Financial Report (CAFR) 4. City Management Letter B. Report from Staff Presentation Bv the Auditors: Kenny Allen presented to the Committee the purpose of the audit. He spoke to a new presentation required for audits and the responsibility under generally accepted accounting standards is to express an opinion on how the financial statements are prepared. He explained the results of the audits had a non qualified opinion. He added that as shown on page 70 in the Parks CUFR, there was one transaction found that did not comply with the regulations to obtain a bid.He explained how there were significant deficiencies noted in the Parks Management letter. These were due in part to new standards required in the letter and there will be more to come in the future. He stated that in accordance with the terms of the engagement letter, they will advise management about the appropriateness of accounting policies and their application. For both reports, the policies can be scene in Notes to the Financial Statements. The Committee discussed Investments made by the City and that they are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events. There were not any risky investments found and if there were, they would have to be disclosed. Mr. Allen spoke to the new requirements of SAS 114, see attached. Parks manaaement letter: Mr. Allen presented the management letter. The first comment was the City and the Parks need to formalize their Intergovernmental Agreement for accounting services. There is no formal agreement between the two organizations, and this could lead to a miscommunication between the parties for who is responsible for specific financial tasks. That was the only significant deficiency in the 2007-2008 audits. Mr. Allen spoke to the deficiencies noted in the prior year audit. The first item was that the Commission does not have a written internal control policies and procedures document. In applying SAS 112 it is believed that the Commission should adopt formal policies/procedures for all accounting areas, especially as it pertains to internal controls II .- AUDIT COMMITTEE MEETING OCTOBER 29, 2008 - PAGE 3 OF 8 and the identification of key controls. The audit did not uncover significant deficiencies pertaining to these areas other than the items noted. Second the Commission's Recware software is not integrated into the general ledger. Segregation of duties requires the Commission to post all of their activity into the GL themselves, and then have the City's finance department reconcile the accounts. The Auditors recommended that the Recware system be integrated into the Eden GL system. Also noted was that manual adjustments to the Recware system were not reviewed on a periodic basis. Segregation of duties requires that at least two employees review these manual changes. The auditors recommend that periodically the manual journal log be printed out and signed off and reviewed by two Parks employees. Third, the Parks shredded their golf receipts for the year. The Parks only kept three months of golf receipts at a time. The auditors recommend that the Parks keep receipts for at least five years or more depending on the records retention policy of the City and Parks and Oregon Law. Forth, the Golf Course has two cash registers, one for tracking the Golf Pro's revenues and the other for the Commission's revenues. The auditors recommend that there only be one cash register so that money is not moving between registers. Also recommended is to purchase computerized software that acts as a cash register as well as tracking golfer information. Last, the auditors found that the golf deposits did not have Park's Management initials showing that they reviewed the deposit. The auditors recommend that all deposits have someone in Parks initials on it to show that the deposit has been looked over. Also if there are questions on a deposit, any resolution of the question should be fully documented somewhere on the deposit. Mr. Tuneberg spoke to the staff responses to the auditor's letter. In the opening of the letter it stated that accounting functions were outsourced to the City based upon a suggestion from the Budget Committee in 2002. Parks and City staff has worked on an agreement of services exchanged for many years. In 2008-2009 the two will work to clarify roles. The 2006-2007 audit first noted the SAS 112 requirement on internal controls. Staff did work on it primarily in City Hall where the cash handling takes place. Procedures were written and training was given on cash handling. Mr. Tuneberg spoke to item number two, that the Recware software needs to be integrated with Eden. This also will be looked into the in next fiscal year as staff is available. Item three was addressed immediately and the golf receipts have not been shredded since. Item four has been addressed, however the two cash registers have not been replaced. Handling of cash has been changed and control of what is going into which register. Management and Parks are looking at the operation currently. III AUDIT COMMITTEE MEETING OCTOBER 29,2008 - PAGE 4 OF 8 Committee Discussion The Committee questioned the allegations made about cash handling and money at the Golf Course published in the Daily Tidings. Don Robertson, Parks Director responded to this question and commented that they did receive allegations and did investigate. They also involved the Finance Department and Auditors. They have not identified that there was anything inappropriate. Changes in procedures have been made in response to the allegations and they will continue to look at how they manage it. The Committee questioned what the allegations were. Mr. Robertson responded that there was an instance that golf was exchanged for pizza, and also an overage in a register that was not handled appropriately. They looked at all the cash handling with city recorders office and finance to see how they are doing business. The Committee questioned if there is a way to monitor cash receipts. Mr. Robertson responded that they balance them daily and if a discrepancy is found, an explanation in writing is expected. Barbara Christensen, City Recorder commented that the City is tightening up on this topic and the receipts are crossed checked by three different departments now and are pleased with the process now. The Committee asked Mr. Allen to comment on the situation. He said they looked at the procedures and most of the instances were money moving between the registers where the problem stemmed from. The Committee questioned if this is something th.at the auditors will catch in the future if it occurs again. Mr. Allen responded yes if it was big dollar amount however, something like exchange for a pizza isn't as significant. The Committee questioned the substantial increase on the program revenues, in operating grants and contributions on page 5. Mr. Tuneberg responded that was revenue to the Parks itself such as payments from sc.hools, and services that were provided outside the Youth Activity Levy. The school district went away from using City services in 2006 then came back to result in a significant portion of fees showing the increase. City Manaaement report: Mr. Allen discusses the City Management report. The first comment for FY 2007-2008 the auditors noted is that the Information Technology (IT) department does not have a cohesive written internal control document that details out their internal controls over their internally developed utility billing system. They also noted that there was no cohesive written internal control document that details the general controls over all computers and systems City-wide. They recommended the City develop written internal control procedures for these areas. They also recommended that IT department have an external review of the processes and controls from an outside entity. Second they noted that the Community Development accounts receivable detail contained many items which were either extremely old or items that have already been paid. They recommended that the Community Development Department reconcile and review their listing of accounts receivable and either write the receivable off because the item had been paid or follow up with the customer to obtain payment. II AUDIT COMMITTEE MEETING OCTOBER 29, 2008 - PAGE 5 OF 8 Response to the Manaaement letter: Mr. Tuneberg responded to the auditor's comments. He first pointed out that management letters are geared toward deficiencies and not what is done right. It is shown that the City has done a lot better this year. This year the City only has two comments instead of multiple comments. Although they did not clear all the comments from the prior year, they have improved the operations and staff is doing the best work in accounting in years. The first comment goes back to 2003 and the City has had this issue with documentation and controls in IT and they need to get a formalized IT plan. This is high on the City's priority list. IT did provide some documentation to the auditors but not enough. They Finance Department needed the documentation before the review. They will continue to work with the IT department. Item number two speaks to the interface of the sub ledger from the Community Development Department. Mr. Tuneberg commented that the City has many sub ledgers that either integrate or manually integrate into the general ledger. They will work on clearing this comment this year. The Committee asked for further clarification on the first comment. Mr. Tuneberg responded that the City's biggest receivable is the utility software that was built by city staff and is operated by city staff. It has been viewed by the auditors that the City needs good documentation on the software and compliance and the auditors cannot rely only on what the City says happens and needs it in writing. He explained that the City needs the documentation and will have an outside party go over it. The Committee asked for clarification on if the people who write the documentation and write the software are in control themselves of the whole revenue system. Martha Bennett, City Administrator responded that because it's not documented and because the sign off policy isn't in place, the IT staff could make changes. The Committee commented on how the individual staff members are also completely unprotected as individuals and urged this issue to be addressed as soon as possible. The Committee commented that they feel that the finance department is grossly understaffed. Mr. Tuneberg responded that the City has has people that wrote the code and could make errors that could lose the City money is what the concern is but there is not much they can do about it. Mrs. Bennett also responded that it is not just finance that is understaffed; the City has reduced the funding of its internal employees. If the City wants to get pass these exceptions, money needs to be put into overhead. The Committee questioned Mr. Allen on if this comment was taken care of, how the auditors would check the restrictions. Mr. Allen responded that the City should have a manual log that shows all changes made in the source code and also make sure that it is reviewed by the appropriate management. The Committee questioned the comment regarding Community Development and if there are other departments that are in charge of billing. Mr. Tuneberg responded they have their own system, it's recorded and goes into that system and integrates into the GL, and the ones that need to be ----rrT...~- AUDIT COMMITTEE MEETING OCTOBER 29, 2008 - PAGE 6 OF 8 cleaned up are out of that system. He added that staff is half way there as of this meeting. The Committee asked if there were any receivables so stale that were beyond the statue. Mr. Tuneberg responded that they are not sure at that time and the issues are input errors not collection errors. The Committee asked if the City has the ability to lien a property on these issues if someone had not paid. Staff responded that it would depend on how much money it would be. The goal is to be done cleaning this up by December and they should see a better report next year.The Committee asked Mr. Allen how long they let aging items go. Mr. Allen responded that they look at things like this and the reason they made a comment this year is because it hadn't been cleaned up from previous year. It is not a significant dollar amount, but when things haven't been cleared in the next year after the original finding, they have to make a comment. The Committee asked Mr. Allen what his concerns were for the City. He responded developing documentation in IT, documenting internal control, and design processes to segregate duties as much as possible. Mr. Tuneberg questioned Mr. Allen on the newer SAS coming out on the risks and how it played a role in the audit. Mr. Allen informed the Committee on the new auditing standard that was implemented in the year called the risk assessment. The role it played in this years audit was auditors make sure to apply risk procedures for the City of Ashland and test those risks. This new risk assessment requires more documentation and conclusions. There will not be an increase in the cost for this implementation. Committee Reflection Questions: Guy Nutter, Committee member read in the Ashland Daily tidings that, Bonneville paid the City $652,870, $600,000, and $150,000 and was wondering if that money is reflected in the financial statement. Mr. Tuneberg responded that part of it is, and would like to clarify that they $636,000 the City received last spring, by Council's direction was put it in the debt service fund to offset future debt service primarily related to the AFN debt. This year the City budgeted to receive $160,000 and there is not an amount of $652,870. The City however will be receiving additional credits from BPA of about $54,000 a month and this will happen in October 2008 through September 2009. The Committee questioned how the one percent is shown. Mr. Tuneberg responded that they City will see this credit in the financial reports for June 30 2009, and they might see a smaller cost in wholesale power and it will show in the electric fund. The Committee questioned the decrease of net assets on page 9 as compared to the increase in active residential meters, but reduced utility sales. Mrs. Bennett responded that was due to the weather and when the City experiences mild weather, not as much water or electricity is used. The Committee questioned the decrease in total grants and contributions by 630/0. Mr. Tuneberg responded by explaining that Grants come and go and sometimes the City receives them, but they fluctuate dramatically, and the City received less this year. The -----rr-T- AUDIT COMMITTEE MEETING OCTOBER 29,2008 - PAGE 7 OF 8 Committee asked for clarification on page 11 and the statement under governmental activities for those who directly benefitted from the offered programs. Mr. Tuneberg responded that those amounts represent services paid directly for programs that are shown on page 20. The Committee asked Mr. Allen why the low staffing level is not shown as an audit comment. Mr. Allen explained that part of the audit is not telling the City how to spend its money. If there was a large segregation of duties issue, it would be noted in the audit. The Committee asked what the large increase was due to in the Highways and Streets on page 10 and if it will continue. Mr. Tuneberg responded that fluctuations will continue and explained how the City shows expenditures on capital intensive activities. The City had less to capitalize in FY "2008r than in FY b2007 because there was less work that we done in the street fund and have been held up on projects. The Committee questioned the bond ratings on page 15. Mr. Tuneberg responded that the City uses the 2003 ratings for the revenue bonds because that was the last time the City went out and sold bonds competitively. The Committee asked Mr. Allen to explain the Deposits and Investments on page 43, section III A. and the deposits not recovered as required by law at the end of the year. Mr. Allen responded that there is a difference between Oregon law and GAAP (Generally Accepted Accounting Principles). GAAP is what was reported. The banks require that they only have to insure 250/0 of a certain amount and GAAP covers 750/0. The City will always have a comment showing that they are under-collateralized for GAAP purposes, but for Oregon law, they are fine. The Committee questioned the increase in unpaid claims from FY 2007 on page 56. Mr. Tuneberg explained that the City looks at the claims each year as to what is outstanding and what can be reported as actual claims and what is incurred but not accrued. The Committee questioned the post employment benefits on page 58 and the rate of return used of 60/0 and what it will look like next year. Mr. Tuneberg explained that by next year the City hopes that it will be lower. The amount the City pays on liabilities will fluctuate. The Committee questioned potential liabilities and possible land contamination. Mr. Allen responded that the auditors do not know if there is a liability of clean up until the study is done. If the regulators tell the City they have to clean up then that is when the auditors would look into the liability. The Committee commented that there was a decrease in the police department with physical arrests and traffic violations and yet we had an increase of 140/0 in the budget for the public safety. Mr. Tuneberg responded that increase costs for operating the emergency services and municipal court may not be directly related to how many tickets the City writes on the street. In the prior year, the police department was not fully staffed so that makes that percentage of personnel cost swing dramatically and the ability to " write as many tickets. --------rlT-- AUDIT COMMITTEE MEETING OCTOBER 29,2008 - PAGE 8 OF 8 The Committee questioned uncollected taxes on page 36 of the Parks report and the possibility of placing a lien on a property. Mr. Tuneberg explained that these liens are run through the county. Christensen/Nutter ms to accept the audit as presented. All Ayes. Public Input There was no public input. Committee Discussion Mr. Tuneberg suggested that the letter that goes into the City's financial report be signed by the chair instead of all members. Christensen/Navickas ms for the letter to be signed by the chair. All Ayes. Review of Audit Contract Fiscal Year 2008-09 is the third year of a three year contract. Next year the City will have to decide whether to extend for another year or whether they go out to bid. Next spring the Audit Committee will get together and talk about what they would like to see happen in the upcoming audit. Before closing Mr. Tuneberg thanked everyone that gave their support and time. Adiournment The meeting was adjourned at 4:40 p.m. Respectfully Submitted, Melissa Huhtala, Administrative Secretary Administrative Services Department I! I T--~-- CITY OF ASHLAND r., COMPREHENSIVE ANNUAL FINANCIAL REPORT For year ended June 30, 2008 Prepared by the Administrative Services Department Lee Tuneberg, Administrative Services and Finance Director table of contents INTRODUCTORY SECTION Page Letter of Transmittal ............................................................................................................................ i-viii Certificate of Achievement for Excellence in Financial Reporting ............................................................... ix Elected City Officials .............................................................................................................................. x Appointed City Officials........ ............... . ........ . ....... ....... ......... . ...... ........ . ........ ...... .. ....................... ........ ... xi Map of City of Ashland. ........ ......... ...... ......... ......... ....... ......... ...... ........ ......... ........ ......... ....... ........ ......... xii Organ.ization Chart................................................................................................................................ xiii Report of Audit Committee... ........ ........ ....... ......... ........ ....... ......... ........ ....... ......... ........ ........ ........ ......... xv FINANCIAL SECTION Independent Auditor 's Report.............................................................................................................. 3-4 Management's Discussion and Analysis............................................................................................................................. ......... .5-16 Ba'iic Financial Statements: Government - Wide Financial Statements: Statement of Net Assets .................................................................................................................. 19 Statement of Activities ................................................................................................................ 20-21 Fund Financial Statements: Balance Sheet - Governmental Funds........................................................................................ 22 Reconciliation of Balance Sheet of Governmental Funds to Statement of Net Assets .... ................. ................................................................ ........ .... 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Govenlmental Funds........................................................................................ 24 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities ................................................................... 25 Statement ofN et Assets - Proprietary Funds............................................................................ 26 Statelnent of Revenues, Expenses and Changes in Net Assets - Proprietary Funds .................... 27 Statement of Cash Flows - Proprietary Funds .......................................................................... 28 Notes to Basic Financial S tatelnents ................................................................................................. 33-61 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual.................................................................................................. 67 Street Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual.................................................................................................. 68 Supplementary Information: Combining Balance Sheet - All Non-Major Funds ......................................................................... 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Non-Major Funds.......................................................................................... 72 comprehensive annual financial report table of contents Page Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: CDBG Fund............................................................................................................................ 73 Airport FUl1d ............................................................................................................................ 74 Debt Service Fund................................................................................................................... 75 Capital Improvenlents Fund.. ....... . ....... ................ . ............... ......... ....... ................. ....... ............. 76 Cemetery Trust Fund................................................................................................................ 77 Schedule of Revenues, Expenditures, and Changes in Net Assets - Budget and Actual: Water Fund.............................................................................................................................. 78 Wastewater Fund..................................................................................................................... 79 Electric Fund............................................................................................................................ 80 Telecommunications Fund......................................................................................................... 81 Consolidating Balance Sheet - Internal Service Funds........................................................................... 82 Consolidating Statement of Revenues, Expenses, and Changes in Net Asset - Internal Service Fund.................................................................................................... 83 Combining Internal Service Fund Statement of Cash Flows.................................................................... 84 Schedule of Revenues, Expenditures and Changes in Net Assets - Budget and Actual: C.entral Services Fund .............................................................................................................. 85 Insurance Services Fund........................................................................................................... 86 Equipment Fund ....................................................................................................................... 87 Capital Assets Used in the Operation of Governmental Funds - By Source ............................................ 88 Schedule of Assets Used in the Operation of Governmental Funds - By Function and Activity .................................. ..................................... 89 Schedule of Bond Principal and Interest Transactions........................................................................ 90-91 Schedule of Property Tax Transactions Collected and Uncollected......................................................... 92 Schedule of Property Tax Transactions and Balances of Taxes Uncollected ............................................ 93 STATISTICAL SECTION (UNAUDITED) - TOTAL REPORTING ENTITY Financial Trends Statement of Net Assets, Governmental Activities, as of June 30, ................................................98-99 Statement of Net Assets, Business-type Activities, as of June 30, ............................................100-101 Changes in Net Assets, Governmental Activities, as of June 30, .............................................. 102-103 Changes in Net Assets, Business-type Activities, as of June 30, ...............................................104-105 Fund Balances, Governmental Funds, Last Ten Years .............................................................106-107 Changes in Fund Balances, Governmental Funds, Last Ten years............................................ 108-109 Fund Balance Comparison, Last Ten years............................................................................. 110-111 Revenue Capacity Assessed and Estimated Actual Value of Taxable Property, for the last ten fiscal years .................... 112 Property Tax Rates- Direct and Overlapping Govennnents, for the last ten fiscal years ................... 113 Property Value and New Construction History, for the last ten fiscal years...................................... 114 Food and Beverage Tax Revenues by Fund, for the last ten fiscal years.......................................... 115 Principal Property Taxpayers, Current Year and Ten Years Ago ............................................... 116-117 General Governmental Tax Revenues by Source,for the last ten fiscal years .................................... 118 Property Tax Levies and Collections, for the last ten fiscal years ..................................................... 119 Electric Utility Usage, for the lastten fiscal years..................................................................... 120-121 city of ash/and table of contents Debt Capacity Page Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita, for the last ten fiscal years ..................... 122 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures, for the last ten fiscal years ......................................................... 123 Pledged Revenue Coverage, Water Fund, for the last ten fiscal years ............................................. 124 Ratios of Outstanding Debt By Type, Last Six years...................................................................... 125 Legal Debt Margin, Last Ten Years ........................................................................................ 126-127 COlnputation of Legal Debt Margin, June 30, 2008 ....................................................................... 128 COlnputation of Direct and Overlapping Bonded Debt, General Obligation Bonds, June 30, 2008 ............................................................................... 129 Economic & Demographic Information Principal Employers, Current Year and Ten Years Ago ................................................................... 130 Demographic Statistics, for the last ten fiscal years ......................................................................... 131 Operating Information Schedule of Major Insurance in Force........................................................................................... 132 City Employee By Function/Progrmn, for the Fiscal Year ended June 30, ....................................... 133 Operating Indicators By Function/Program, Last Ten years..................................................... 134-135 Capital Assets and Infrastructure Statistics By Function/Program, Last Ten Years .................... 136-139 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Minimum Standards for Audits of Oregon Municipal Corporations ................................................. 143 Report of Independent Auditors ............................................................................................ .144-146 GOVERNMENT AUDITING STANDARDS COMPLIANCE REPORTS Schedule of Federal Financial Assistance....................................................................................... 149 comprehensive annual financial report INTRODUCTORY SECTION comprehensive annual financial report II I CITY OF ASHLAND November 18, 2008 Re: City of Ashland Comprehensive Annual Financial Report To the Citizens of the City of Ashland: The Comprehensive Annual Financial Report of the City of Ashland, for the fiscal year ended June 30, 2008, is hereby submitted 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 close of each fiscal year and responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data is accurate in all material aspects and is reported in a manner designed to fairly present the financial position and the results of operations of the various funds, account groups and component unit of the City of Ashland. All disclosures necessary to enable the reader to gain an understanding of the City of Ashland's activities have been included. The City is required to undergo an audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget's Circular A-133. Information related to this audit, including a schedule of expenditures of federal awards, the independent auditor's reports on internal controls and compliance with applicable laws and regulation, and a schedule of findings and questioned costs, are included in section five of this report titled "Government Auditing Standards Compliance Reports." The independent auditor concluded, based upon their audit, that there was a reasonable basis for rendering an unqualified opinion and that the City's financial statements for the year ended June 30, 2008 are presented in conformity with Generally Accepted Accounting Principals (GAAP). The independent auditor's report is presented as the first component of the financial section of this report. The financial reporting entity includes all the funds of the City of Ashland, as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. The City provides a full range of services which include police protection, fire protection, building inspection, planning services, economic development, comprehensive annual financial report page i II I social services, senior program, ambulance, electric, cable television and internet access, water, streets, storm drain, wastewater, airport, cemetery, band, parks and recreation activities. The Parks and Recreation Commission activities are reported as a discretely presented component unit. The discretely presented component unit is reported in a separate column in the government-wide financial statements. This emphasizes that it is operated autonomously and accounted for separately from the primary government. It also differentiates its financial position, results of operations and cash flows from those of the primary government. GOVERNMENTAL STRUCTURE, ECONOMIC CONDITIONS AND OUTLOOK The City, incorporated in 1874, is located in the southwest part of the state. The City currently has a land area of 6.52 square miles and a population of 21 ,800. 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 property located within its boundaries. The City also has the power by state statute to extend its rorporate limits by annexation, which is done periodically when deemed appropriate by the governing council. The City operates under the council-administrator form of government. Policymaking and legislative authority are vested in the City Council. The governing rouncil is responsible for, among other things, passing ordinances, adopting the budget, appointing committees and hiring the City Administrator 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 officials are the City Recorderrrreasurer, Municipal Judge, and the five-member Parks and Recreation Commission. The City Administrator has responsibility for all 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, Administrative Services/Finance Director, Electric Director and Information Technology Director). The Mayor, with confirmation of the City Counal, appoints the City Administrator, the City Attorney, the departments heads, and the Band Board. 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 standing advisory boards and commissions, and additional ad hoc committees assist the City Council. Over 135 Ashland citizens serve on these boards and commissions and make a valuable contribution to the City of Ashland. page ii city of ash/and 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 high occupancy rate with a variety of shops, restaurants, commercial businesses, and financial institutions. The state has a major eoonomic presence in the area in Southern Oregon University (SOU), which is located on a 175 acre campus within the city limits approximately one mile from the city center. According to the State of Oregon Employment Department, Ashland has an employed work force of approximately 9,000. When governments and non-profits beyond the scope of licensing are included, the total work force is an estimated 10,329. Recent changes in the economy are beginning to appear in the City in flattened or reduction in revenue. Examples are the Transient Occupancy Tax and Food and Beverage Tax revenue (for all business activities as presented in tables in the Statistical section) reflect decreases of 1.50/0 and 3.30/0 respectively over the previous year. In 2007-2008 the City issued $24 million dollars in building permits, which is a decrease of both commercial and residential permits issued. Active residential electric meters rose from 9,914 in June 2007 to 10,889 in June 2008. This single-year increase of 9.80/0 is higher than Ashland's growth in population of 1.70/0. Non-residential meters grew at 6.3 0/0. The estimated consumer economy is $228 million according to the 1997 US Economic Census, an increase of 130/0 over the $202 million estimated in 1992. Using city tax collection information, visitor accommodations (over $16 million) and food service (over $15 million) accounted for 230/0 of the economy. The success of these aspects can be greatly attributed to tourism generated by cultural attractions, the largest of which is the Oregon Shakespeare Festival Association (OSFA), a nationally renowned theater company presenting eleven plays over a season from February through October to an estimated attendance over 350,000. OSFA employs 50/0 of the total work force in the City limits, and has an estimated impact on the local economy of over $100 million based on the 2.9 multiplier provided by the 1997 economic census. IN IliA liVES The City Council has adopted a Community Values Statement and identified several major goals in July 2007 to meet the needs of citizens and community. The goals reflect the City's commitment of ensuring that its citizens are able to live and work in an enviable environment. The Community Values Statement is: comprehensive annual financial report page Hi II I "The citizens of Ashland value a city government that helps create an environment within which they are able to live happy and productive lives. This includes a healthy and sustainable environment: and opportunity to acquire the basic necessities of life: a sound infrastructure that meets our common needs for transportation, energy, information and communications, health care, water and waste management: and a variety of social, recreational, business and cultural opportunities. The citizens want their government to respect our diverse people, natural environment, and rich heritage and culture: and to promote citizen involvement, initiative, innovation, and a strong sense of community. " The adopted goals include: · Develop a City-led Comprehensive Economic Development Strategy with an Emphasis on Local Economy, Diverse Population, Risks of Over-Reliance on Single-Industry, and Living Wage · Develop City-Employee Continuity Strategy · Develop a City-Wide Transportation Strategy · Complete a City-Wide Visioning Plan · Develop plan to establish fiscal stability, manage costs, prioritize services, and insure key revenue streams · Generate Net Increase in AffordablelWorkforce Housing by a Minimum of 200 units by 2010 · Increase Effectiveness in ConServation programs and identify Specific targets in Energy and Resource Consumption · Implement Program to Provide Workforce Housing for City Employees · Develop a Long-Term Plan for all City Facilities and Properties · Develop a Strategy for the Railroad Property · Complete Downtown Planning Process 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 oompiled 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) the valuation of costs and benefits requires estimates and judgements by management. The City's system of internal accounting controls is designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition. page iv city of ash/and As a 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. As part of the City's single audit, described earlier, 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 regulation related to non-major federal financial assistance programs, the audit for the year ended June 30, 2008, 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 2007-2008 budget was prepared on a fund basis with department, program and line item detail. Cash Management. Cash temporarily left idle during the year was invested in demand deposits, certificates of deposit, treasury notes, treasury bills, and the State of Oregon Local Government Investment Pool. 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. This program is managed by the City Recorder! Treasurer. All bank balances were collateralized by federal depository insurance or certificates of participation in the collateral pool issued by the Treasurer of the State of Oregon as the collateral pool manager. Risk Management. The City has an ongoing risk management program. As part of this comprehensive program, which was started in 1980, resources are accumulated in the Insurance Services Fund to meet potential losses. Various risk control techniques, including employee accident prevention training and employee wellness programs, have been implemented to minimize workers compensation and health insurance claims. The City provides life and health coverage to its employees and their dependants. The City pays 950/0 for employees with management and all five bargaining units paying 50/0 of their premium. Other optional supplemental insurances are available to employees and are paid entirely by the individuals electing to carry them. General liability claims up to $50,000 and workers compensation daims are being self-insured. 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 management's discussion and analysis, and should be read in conjunction with it. The City's management's discussion and analysis can be found immediately following the report of the independent auditors. comprehensive annual financial report page v II I 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 categories: one to fund the public school system and community college and the other for local governments. The citizens of the State of Oregon approved a property tax limitation in November 1991 referred to as Measure 5. 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) initially, and have been lowered to $5.00 per thousand. The local government category is limited to $10.00 per thousand. The 2007-2008 local government tax rate in the City of Ashland was $5.73, 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 a property tax limitation referred to as Measure 47. Prior to enactment, this measure was repealed and replaced at a special election May 20, 1997, by Measure 50. Measure 50, after the 1996-1997 fiscal year, changed the property tax limitation on levies, rates assessment and equalization. Measure 50 includes a reduction of property tax to previous levels and a limit on the growth in assessed valuation, which will result in a limit on a tax increase in subsequent years. Specifically, Measure 50 rolled back the assessed value of each unit of property for the tax year 1997-98 to its 1995-96 "real market value" less ten percent. The Measure limited increases in assessed value in future years to 3% per year. The Measure also establishes a new permanent tax rate for each taxing district. Ashland's permanent rate for the operating levies is set at $4.2865, although the City chose to levy only $3.9447 of this amount in 2007-2008. The Measure also provides for voter approved Local Options 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 this fiscal year. Recent Court Cases. Two recent court cases have brought into focus the potential impact legislative or judicial changes may have on the City. An Oregon Court of Appeals decision in the case of Clarke v. Oregon Health Sciences University has raised questions about the tort cap limits that are part of the Oregon Tort Claims Act and liability coverage in Oregon. This case may change the protection that Oregon public entities have relied on in ORS 30.270 and may allow public entity staff members to be sued individually. Also, an Oregon Supreme Court opinion in the Urhausen v. City of Eugene regarding the constitutionality of special tax levies allowed under ORS 310.155(3) may have an impact on the similar Youth Activity Levy approved by Ashland citizens in 2003. As a result the School District moved to a separate local option levy and the Youth Activity Levy sunset on June 30,2008, without renewal. page vi city of ash/and Independent Audit. State statutes require an annual audit by independent certified public accountants. The accounting firm of Pauly, Rogers and Co., P .C. was selected by the City's Audit Committee. In addition to meeting the requirements set forth in the state statues, the audit was also designed to meet requirements of the federal Single Audit Amendments of 1996 and the related OMB Circular A-133. Generally accepted auditing standards and the standards set forth in the General Accounting Office's Government Auditing Standards were used by the auditors in conduction the engagement. The independent auditor's report on the basic financial statements and combining and individual fund statements and schedules are included in the financial section of its report. The auditor's reports related specifically to the Single Audit Act are included in the grant compliance section. 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, 2007. This was the sixteenth year the City had submitted its report for review. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. This award is valid for a period of one year only. 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 annual 2007-2008 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 operational guide, as a financial plan and as a communication device. Acknowledgments. The timely preparation of the Comprehensive Annual Financial Report was made possible by the dedicated service of the entire staff of the City of Ashland Administrative Services/Finance Department, 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, ~/~ 4J<~ Martha Bennett City Administrator Lee Tuneberg Administrative Services and Finance Director comprehensive annual financial report page vii II I Certificate of Achievement for Excellence in Financial Reporting Presented to City of Ashland Oregon For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,2007 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers . Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ~ ~. Gx President ~/~ Executive Director comprehensive annual financial report page ix II I CITY OF ASHLAND ELECTED CITY OFFICIALS June 30, 2008 Name John Morrison 249 Wimer Street #40 Ashland, OR 97520 David Chapman 390 Orchard Street Ashland, OR 97520 Alice Hardesty 575 Dogwood Way Ashland, OR 97520 Cate Hartzell 881 East Main Street Ashland, OR 97520 Kate Jackson 359 Kearney Street Ashland, OR 97520 Eric Navickas 363 Iowa Ashland, OR 97520 Russ Silbiger 562 Ray Lane Ashland, OR 97520 Barbara Christensen 759 Willow Street Ashland, OR 97520 Pam B. Turner P.O. Box 1299 Ashland, OR 97520 page x city of ash/and Position Mayor Council Member Council Member Council Member Council Member Council Member Council Member Recorder/Treasurer Municipal Judge CITY OF ASHLAND APPOINTED CITY OFFICIALS June 30, 2008 Name Position Martha Bennett 223 Eastbrook Way Ashland, OR 97520 City Administrator Richard Appicello P.O. Box 1333 Ashland, OR 97520 City Attorney Mike Faught 4015 Payne Rd. Medford, OR 97504 Public Works Director Joseph Franell P.O. Box 2853 White City, OR 97503 Information Technology Director Terry Holderness 50 Pine Street Ashland, OR 97520 Police Chief William Molnar 155 Hillcrest Street Ashland, OR 97520 Community Development Director Darlow "'Lee" Tuneberg 327 Starflower Lane Ashland, OR 97520 Administrative Services/ Finance Director / Budget Officer Richard Wanderscheid 1280 Kirk Lane Ashland, OR 97520 Electric Director Keith Woodley 571 Oak Knoll Drive Ashland, OR 97520 Fire Chief comprehensive annual financial report page xi II I CITY OF ASHLAND rA' Vicinity Map 2008 page xii city of ash/and City of Ashland 268.76 FTE Adopted ( Citizens of Ashland Population. 21,800 "" "" City Recorder Municipal Judge Elected. 4 Year Term -< Elected. 4 Year Term (2.0 FTE) (Included in Finance) \0.. ~ ~ I I r "" r " Parks Commission Mayor (1) Elected Board Members (5) City Council (6) Elected. 4 Year Terms \... ~ ~ ~ I r I r Parks Department " ( Boards & Commissions '" r City Administrator '" r City Attorney '" Appointed Director Standing Commissions (17) Appointed Appointed (50.55 FTE) Ad Hoc (4) (Included in Administration) (Included in Administration) \.. & Citizen Committees ~ ~ \... \... ~ \... ~ , "" r " Administration Information Technology (9.56 FTE) I- Appointed Director \... ~ \... (15.15 FTE) ~ r "" " Administrative Services Police Appointed Director >-< Appointed Director (19.9 FTE) (39.3 FTE) '110.. ~ ~ "" r '" Fire & Rescue Public Works Appointed Director 1--1 Appointed Director \... (35.0 FTE) (59.8 FTE) ~ \.. ~ , '" '" Community Development Electric Appointed Director --l Appointed Director \. (16.4 FTE) ~ (21.1 FTE) ~ comprehensive annual financial report page xiii II I October 29,2008 CITY OF ASHLAND The City Council City of Ashland, Oregon The Audit Committee advises the City Council on matters concerning the City's financial reporting process. In fulfilling its responsibilities, the Committee recommends the independent certified public accountants to be engaged by the City Council as the City's auditors. The Committee discusses with the selected independent certified public accountants the overall scope and specific plans for the audit. The Committee also discusses with the City1s auditors the City's financial accounting and reporting processes, including the preparation of the financial statements. In addition, the Committee discusses including the safeguarding of the City's assets and other resources against unauthorized acquisition, use or disposition. At the conclusion of the annual audit, the Committee meets with the City's auditors to discuss the results of their audit and their evaluation of the City's financial reporting. Based on the Committee's discussions with the City's auditors, we accept the City's 2007-2008 Comprehensive Annual Financial Report (CAFR) and the related audit reports of the independent certified public accountants. Based on our acceptance, we recommend the CAFR and auditor's reports be accepted by the City Council. Respectfully submitted, The Chair of the Audit Committee ~)~ 20 East Main Street Ashland, Oregon 97520 www.ashland.or.us Tet 541-486-5300 Fax: 541-488-5311 TTY: 8()()"735.2900 r.l' !! I FINANCIAL SECTION comprehensive annual financial report page 1 ,I I file PAULY, ROGERS AND CO., P.C. CERTIFIED PUBLIC ACCOUNTANTS . 12700 S.W. 72nd Avenue · Tigard, Oregon 97223 . PHONE (503) 620-2632 · FAX (503) 684-7523 October 21, 2008 To the Honorable Mayor and Members of the City Council City of Ashland, Oregon INDEPENDENT AUDITORS' REPORT We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Ashland, Jackson County, Oregon, as of and for the year ended June 30, 2008, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 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 discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Ashland, Jackson County, Oregon, at June 30, 2008 and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. The Management Discussion and Analysis and the required supplementary information, as listed on the table of contents, are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. comprehensive annual financial report page 3 I I Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Ashland's basic financial statements. The introductory section, supplementary information and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information, as listed in the table of contents, has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. yq r?~ 4.r/~/ Rc PAULY, ROGERS AND CO., P.C. page 4 city of ash/and MANAGEMENT'S DISCUSSION AND ANALYSIS City of Ashland management offers readers of the financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2008. Certain information has been provided for the Ashland Parks & Recreation Commission which qualifies as a component unit of the City. 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. Financial Highlights . The total net assets of the City of Ashland (total assets less total liabilities) at the fiscal year end of June 30,2008 is $101,364,054. . The City's total net assets decreased this year by $4,008,671 or 3.80/0. . The City's governmental funds reported combined ending fund balances totaling $7,541 ,105, an increase of $628,303 or 90/0 for the year. Proprietary funds combined ending fund balances decreased by $3,214,413 or 40/0 to $63,501,275. Internal service funds reported a combined $728,698 decrease in ending fund balance. . The unreserved fund balance for the General Fund was $2,060,152 or 14 percent of total General Fund expenditures. Figure 1 City of Ashland Sources of Revenue for Fiscal Year 2008 Figure 2 City of Ashland Program Expenses for Fiscal Year 2008 Other 3% - Grants & Contributions 1% Highways & streets 8% Wastewater 11% Property Taxes 9% Telecom. 6% Charges for Sel"llices 68% Public safety 24% comprehensive annual financial report page 5 ---.-.-------- --"--.-..--.------..-- ...-"--..-,-.,,.. ..-.- Overview of the Financial Statements This annual report consists of three parts-management's discussion and analysis (this section), the basic financial statements, and required supplementary information. · The remaining statements are fund financial statements that focus on individual parts of the government, reporting the City's operations in more detail than the government-wide statements. · The governmental funds statements tell how general government services were financed in the short term as well as what remains for future spending. Figure 3 shows how the required parts of this annual report are arranged and related to one another. The basic financial statements include two kinds of statements that present different views of the City: · The first two statements are government-wide financial statements that provide both long-term and short-term information about the City's overall financial status. Figure 3, Required Components of the City of Ashland's Annual Financial Report :-------------------~ I~~K..I FI=~=.' ~ Statements Af~ Required Supplementary Information Government-Wide Financial Statements L------------------: Fund ~"'ee4 Financial eo de ........n.. . ~.::...--;'... Summary <:: :> Detail · Proprietary fund statements offer short- and long-term financial information about the activities the government operates like businesses. · Fiduciary fund statements provide information about the financial relationships in which the City acts solely as a trustee or agent for the benefit of others, to whom the resources in question belong. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. Figure 4 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis explains the structure and contents of each of the statements. page 6 city of ash/and Figure 4 Major Features of the City of Ashland's Government-wide and Fund Financial Statements Fund Statements Type of Statements Government-wide Governmental Funds Proprietary Funds Fiduciary Funds Scope Entire City's government (except fiduciary funds) and the City's com ponent units -Statement of net assets Required financial statements -Statement of activities Accounting basis and measurement focus Accrual accounting and econom ic resources focus Type of asset/liability inform ation All assets and liabilities, both financial and capital, short-term and long- term Type of inflow/outflow inform ation All revenue and expenses during year, regardless of when cash is received or paid Government-wide Statements The activities of the City that are not proprietary or fiduciary -Balance sheet -Statement of revenues, expenditures & changes in fund balances Modified accrual accounting and current financial resources focus Only assets expected to be used up and liabilities that come due during the year or soon thereafter, no capital assets included Revenues for which cash is received during or soon after the end of the year: expenditures for goods or services that have been received and payment is due during the year or soon thereafter. Activities the City operates sim ilar to private business: self insurance -Statement of net assets -Statement of revenues, expenses and changes in fund net assets -Statement of cash flows Accrual accounting and economic resources focus All assets and liabilities, both financial and capital, and short-term and long-term All revenues and expenses during year, regardless of when cash is received or paid Instances in which the City is the trustee or agent for someone else's resources -Statement of fiduciary net assets -Statement of changes in fiduciary net assets Accrual accounting and economic resources focus All assets and liabilities, both short-term and long- term: the Agency's funds do not currently contain capital assets, although they can All revenues and expenses during year, regardless of when cash is received or paid The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net assets includes all of the government's assets and liabilities. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the City's net assets and how they have changed. Net assets-the difference between the City's assets and liabilities-is one way to measure the City's financial health or position. . Over time, increases or decreases in the City's net assets are an indicator of whether its financial health is improving or deteriorating, respectively. . To assess the overall health of the City, one needs to consider additional nonfinancial factors such as changes in the City's tax base. The government-wide financial statements of the City include the Governmental activities. Most of the City's basic services are included here, such as general government, public safety, highways and streets, and interest on long-term debt. Property taxes, grants and some fees finance most of these activities. comprehensive annual financial report page 7 Fund Financial Statements The fund financial statements provide more detailed information about the City's most significant funds-not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes. · Some funds are required by State law and by bond covenants. · The City Council establishes other funds to control and manage money for particular purposes or to show that it is properly using certain taxes and grants. The City has the following kinds of funds: · Governmental funds-Most of the City's basic services are included in governmental funds, which focus on (1) how cash and other financial assets can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental fund statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds statement, or on the subsequent page, that explains the relationship (or differences) between them. · Proprietary funds-Services for which the City charges customers a fee are generally reported in proprietary funds. Proprietary funds, like the government- wide statements, provide both long-term and short-term financial information. · We use internal service funds to report activities that provide supplies and services for the City's other programs and activities. FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net assets. The City's combined net assets were $101,364,054 at June 30,2008. (See Table A below and the Statement of Net Assets on page 19). page 8 city of ash/and Current Assets: Cash and cash equivalents Receivables, net Inventories - supplies and materials Deferred charges Internal balances Restricted assets: Cash and cash equivalents Total current assets: Noncurrent assets: Capital assets Less accumulated depreciation Total noncurrent assets Total Assets Current liabilities: Accounts payable and accrued liabilities Deferred revenue Total current liabilities Long-term liabilities: Claims payable Total Liabilities Net Assets: Invested in capital assets Restricted Unrestricted Total Net Assets Table A City of Ashland's Net Assets (In thousands dollars) Governmental Activities 2008 2007 $ 9,845 2,444 $ 10,923 2,531 60 (1,587) 542 12,445 84,841 (35,789) 49,052 61,497 3,080 3,080 21,268 24,348 27,969 3,849 5,332 $ 37,150 Business-type Activities 2008 2007 $ 6,438 2,190 36 881 1,216 1,305 $ 9,837 2,105 806 1,340 1,587 15,675 110,634 (31,502) 79,132 94,807 1,708 1,708 24,877 26,585 54,265 4,315 9,643 $ 68,223 Total 2008 2007 $ 16,283 4,634 941 1,216 1,241 24,315 199,800 (73,672) 126,128 150,443 4,837 4,837 44,242 49,079 81,990 9,992 9,382 $ 101,364 $ 20,760 4,636 842 1,340 542 28,120 195,475 (67,291 ) 128,184 156,304 4,788 4,788 46,145 50,933 82,234 8,164 14,975 $ 105,373 Total Percentage Change 2008-2007 -21.6% 0.0% 11.8% -9.3% n/a 129.0% -13.5% 2.2% 9.5% -1.6% -3.7% 1.0% n/a 1.0% -4.1% -3.6% -0.3% 22.4% -37.3% -3.8% At June 30, 2008, approximately 600/0 ($6.0 million) of the City's restricted net assets represent proceeds from systems development charges as compared to $6.2 million or 800/0 the prior year. These proceeds, when spent, are restricted for capital assets or related debt. The $9.4 million of unrestricted net asset at June 30, 2008, is 370/0 smaller than the prior year and represents resources available to fund the programs of the City next year. (1,305) 1,241 12,285 86,696 (38,631 ) 48,065 60,350 3,121 3,121 20,591 23,712 27,578 4,402 4,658 $ 36,638 12,030 113,104 (35,041 ) 78,063 90,093 1,716 1,716 23,651 25,367 54,412 5,590 4,724 $ 64,726 Changes in net assets. The City's total revenues were flat between years at $44.455 million reflecting tax and charges for service increases being offset by reduced utility sales and housing industry charges and tourism related tax revenue. Notable changes in revenue were: . An increase in Charges for service of $471,000 (1.60/0) primarily due to rate increases covering less water and electric sales. . Decreases in total grants & contributions of $687,000 (630/0) as compared to the prior year due to less qualifying capital expenditures included in the budget. . An increase in property taxes of $613,000 to General Fund services and for other programs such as temporary local library support. . $254,000 more in other taxes represents better collections of delinquent franchise taxes. comprehensive annual financial report page 9 ,-- Of the total $44.4 million, 670;0 or $30.2 million is from Charges for services and $2.47 million or 5% is from grants, interest earnings and other non-tax sources. Only 260/0 or $11.8 million comes from the various sources of taxes. (See Table B below and the Statement of Activities on pages 20 and 21.) Tax revenues represented 240/0 of total revenues in the prior year. Table B Changes in City of Ashland's Net Assets (In thousands dollars) Total Governmental Business-type Percentage Activities Activities Total Change 2008 2007 2008 2007 2008 2007 2008-2007 Program revenues: Charges for services $ 9,334 $ 8,657 $ 20,825 $ 21,031 $ 30,159 $ 29.688 1.6% Operating grants & contributions 100 217 116 168 216 385 -43.9% Capital grants & contributions 178 696 178 696 -74.4% General revenues: Property taxes 4,170 3,557 4,170 3.557 17.2% Other taxes 6,092 5,786 1.568 1,620 7,660 7,406 3.4% Interest 445 407 459 1,195 904 1.602 -43.6% Other 779 1,085 389 1.168 1,085 7.6% Total revenues 21.098 20,405 23,357 24.014 44,455 44,419 0.1% Program expenses: General government 4,876 4.287 4,876 4,287 13.7% Public safety 11,556 10,083 11,556 10,083 14.6% Highways and streets 4,000 2,584 4.000 2,584 54.8% Interest on long-term debt 1,178 1,139 1,178 1,139 3.4% Water 4,959 4,956 4,959 4,956 0.1% Wastewater 5,262 4,895 5,262 4,895 7,5% Electric 13,876 12,904 13,876 12,904 7.5% Telecom munications 2,757 2,683 2,757 2,683 2.8% Total expenses 21.610 18,093 26,854 25,438 48,464 43,531 11.3% Increase (Decrease) in net assets before transfers and disposals (512) 2,312 (3,497) (1,424 ) (4,009) 888 -551.5% Interfund transfer (15,896) 15,896 Increase (Decrease) in net assets (512) (13,584) (3,497) 14,472 (4,009) 888 -551.5% Net Assets - 6/30/2007 37,150 50,734 68,223 53,7 51 105,373 104,485 0.8% Recognition of prior infrastructure $ 64.726 $101,364 Net Assets - 6/30/2008 $ 36,638 $ 37,1 50 $ 68,223 $ 105,373 -3.8% The total cost of all programs and services was $48.5 million which is 11 % more than 2007's $43.5 million. Govemmental Activities increased $3.5 million (as compared to 2007's $4.3 million increase) and Business-type Activities increased $1.4 million whereas the prior two years had reductions. The current year included significant increases in operational (fuel, staffing, debt service) and project costs as compared to the prior years. This, combined with the revenue levels mentioned above, resulted in a $4 million decrease in net assets for the current year as opposed to a $888,000 increase in the prior year. As mentioned above, the overall change in Net Assets during the year is a decrease of $4 million or 3%. In the prior year (2007) the City experienced a $888,000 increase in net assets and a $2.3 million increase in 2006. The three years combined indicate stability in the City's financial position. page 10 city of ash/and The decrease for 2007-2008 represents a consistent tightening of revenues as compared to expenses in most areas with the city attempting to balance total revenues with total program and project expenditures. The city received more in Taxes and miscellaneous revenues than the prior year while operating and capital requirements in all operations negatively impacted cash reserves and ending balances. Rate and fee increases were implemented but their impact was diminished by reduced activities in the corresponding programs. Governmental Activities . The cost of all governmental activities in FY 2007-2008 was $21.6 million or 190/0 ($3.5 million) more than the prior year. FY 2007-2008 included $1.5 million more in Public Safety, $1.4 million more in Highway and street maintenance and repair and $600,000 more in general government services than in FY 2006-2007. . The amount that citizens paid for these activities through property taxes was $4,170,062 or approximately $613,000 more than the prior year representing a 170/0 increase, in part due to additional services approved during the budget process. . Those who directly benefited from the offered programs paid $677,000 (70/0) more than the prior year's $8.7 million which equates to 450/0 of the cost (excluding interest on long term debt) for FY 2007-2008 as compared to 51 % in the prior year. . Grants and contributions revenues decreased from $913,000 to $278,000 between the two years in keeping with fewer qualifying programs for grant funding in FY 2007 -2008. The availability of grant and contributions (and related costs) can change significantly each year. The Property Tax revenue increase was due to allowable increases for assessed value on property, new construction and improvements, normally referred to as growth, plus the debt service amounts levied and approved levies for added services. Other tax revenues increased $306,000 including increased franchise revenues from utilities, state subventions (such as 911 excise tax) and other user taxes such as food and beverage tax proceeds. Net Assets for Governmental Activities as identified in Table B decreased $512,000 or 1.50/0 to $36.6 million due to increased operational costs as compared to revenue. Reducing reserves had been a goal of the City and prior budgets reflected such activity. This naturally occurred during FY 2007-2008 in an effort to contain the impact on the average customer but this will not be possible in the coming years. Management's focus for FY 2007-2008 and beyond was and is to balance annual and short-term revenues and expenses, maintaining approved reserve levels to assure long-term financial stability. Recent changes in the local economy elevates the importance of this goal. comprehensive annual financial report page 11 ---,- ---- Table C presents the cost of each of the City's largest Governmental Activities as well as each function's net cost (total cost less fees generated by the activities and intergovernmental aid). The table shows that, again this year, only General Government (primarily Internal Service funds, Street Fund and Capital Improvement Fund activities) had charges for services, grants and contributions sufficient to cover expenses as reflected by the negative net costs in the table of $1,139,000 as compared to $890,000 more in revenues than expenses in the prior year. Public Safety (Police and Fire services in the General Fund) and Highways and Streets had "positive" net costs that required funding through General Revenues like taxes and fund balance in FY 2007-2008 as in the prior year. Changes between years are common and most often are due to timing of capital projects and receipt of related financing proceeds, grants or other intergovernmental monies. Table C Net Cost of Selected City of Ashland Governmental Functions (In thousands of dollars) General Government Public Safety Highways and Streets Total Cost of Net Cost of Services % Change Services 2008 2007 2008 2007 $ 4,876 $ 4,287 13.7% $ (1,139) $ (890) 11,556 10,083 14.6% 9,933 7,988 4,000 2,584 54.8% 2,025 285 % Change -28.0 % 24.3% 610.5 % Busi ness-type Activities Program revenues of the City's Business-type Activities totaled $20,941,000 or 770/0 of related expenses for FY 2007-2008 as compared to $21,199,000 or 83.0% of the prior year. Revenues were fairly consistent between years with decreased activity in Telecommunications due to out-sourcing cable television operations and milder weather holding power and water sales flat. The more significant impact was increased operational costs for all enterprises during the year greater than additional revenue afforded by rate increases. The City also received 32% less in operating grant revenues for business-type projects than the prior year. All four utilities presented in Table D recorded program revenues less than expenses resulting in net costs in FY 2007-2008. The most significant change was in the Electric fund where sales were flat due to milder weather and a revenue rate adjustment that was designed to be a neutral impact on the customer but did cause a shift in revenue to the General Fund. This resulted in a 1 % to 1.5% reduction in sales to the Electric Fund. The mild weather had a similar impact directly on Water Fund sales and indirectly on Wastewater revenues that are based upon water consumption during winter months. The Telecommunications Fund finished outsourcing cable television services during FY 2007-2008 and contributed $356,000 toward related debt service which accounts for the increase in Net Cost of Services for that fund. page 12 city of ash/and Table D Net Cost of Selected City of Ashland Business-type Functions (In thousands of dollars) Water Wastewater Electric Telecommunications Total Cost of Net Cost of Services % Change Services % Change 2008 2007 2008 2007 $ 4,959 $ 4,956 0.1% $ 790 $ 623 26.8% 5,262 4,896 7.5% 2,527 2,254 12.1% 13,876 12,905 7.5% 1,549 709 118.5% 2,756 2,683 2.7% 1,047 654 60.1% FINANCIAL ANALYSIS OF THE CITY OF ASHLAND'S FUNDS Total ending fund balance for city funds decreased 120/0 or $3.1 million to $21,585,741 during FY 2007-2008. With the Parks and Recreation Commission (component unit of the city) fund balances, the total is $23,211,118 at June 30,2008, and represents 410/0 more than budgeted. Actual exceeded budget by 21 % at the end of FY 2006-2007. Actual ending fund balance exceeding the budgeted amount is desirable but may represent a too conservative approach in budgeting and projects not being done or services not being provided. The reduction in the actual amount of ending fund balance above budget is caused by many things including inflationary costs exceeding growth in demands for and payment for services. Other considerations are: . Utility rates were raised but sales lagged and operational costs for staff, fuel, materials and purchased services increased. . Some departmental and divisional budgets were under spent (programs or projects undone) due to key positions being vacant during the year. . Capital projects that were com pleted were paid for with reserves rather than financed as anticipated in the budget. . Most of the Contingency budgeted in a fund going unused. Revenues from governmental fund types totaled $20.9 million, which is $921,000 more than the preceding year while expenditures were $1.4 million more for the same activities. General Fund's ending balance is $$2.3 million, about the same as the prior year with a prior period adjustment between funds absorbing most of the $286,048 disconnect between revenues and expenditures. FY 2007-2008 was another year with some revenue flat or reduced and departments offsetting that impact with reduced spending and 700/0 of Contingency going unused. Other significant changes in governmental fund types, were increases in Property Taxes to fund desired services like the local library, additional franchise taxes from prior years were received in FY 2007-2008 less in Miscellaneous revenue from property sales despite a refund on the wholesale power purchases of $636,000 that was set aside in the Debt Service fund to meet future obligations. comprehensive annual financial report page 13 Capital intensive funds (all enterprise funds) recorded reduced ending fund balances for operations and capital improvements paid from reserves. Those funds anticipating bonds or loans for capital improvements moved ahead slowly anticipating borrowing late in FY 2007-2008 or early in the following year. The Water and Wastewater funds are good examples of using reserves to pay for approved capital improvements instead of issuing bonds to finance the projects. In the Electric Fund reduced wholesale power costs offset other increases contributing to a better-than-budgeted ending fund balance. The Telecommunications Fund balance decreased from $963,896 to $869,719 in part due to a larger contribution toward debt service and the Central service program. The Cemetery Trust fund balance remained consistent and above targets reflecting balanced revenues and expenditures. The Internal Service funds (Central Service, Insurance Services and Equipment funds) fund balances decreased but maintained sufficient balances for the short term. General Fund Budgetary Highlights During the year the City revised its budget by transfer of appropriation, reducing Contingency by $120,000 and increased the total appropriation through supplemental budget to recognize and use forfeited assets. Actual expenditures were 140/0 or $2,3 million below final budget amounts, consistent with the prior year. As in the prior year, the most significant variation was the City not being able to use proceeds from the sale of property to expend the budgeted $1,000,000 for affordable housing. The Police Department spent 940/0 of its final budget leaving $337,776 for carry forward primarily due to less staff and related impact on programs. Fire and Rescue under spent its final budget by $259,430 (a savings of 50/0) and Community Development could not purchase the anticipated property for affordable housing leaving the $1,000,000 unused which was offset by no revenue from related property sales. Except the previously mentioned land sale, other revenue varied from budget but remained consistent with activities. Excluding the $1,000,000 from sale of land, revenue for the General Fund was about 98% of budget. The largest reduction was in total taxes of $407,564 or 30/0 of budget. The net effect of the above changes was expenses exceeding revenues by $318,728 when a shortfall of $1.1 million was budgeted for a positive variance of $823,368. With transfers between funds the fund balance decreased $286,048 or 120/0 before the prior period adjustment. The adjustment correctly recognizes the $215,000 loan and liability repayment between the General Fund and the Community Development Block Grant Fund to buy The Grove community center in the prior year. page 14 city of ash/and CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of 2008, the City recorded an net investment of $126 million ($81,989,730 net of related debt) in a broad range of capital assets, including land, equipment, buildings, and vehicles. (See Table E). This is a decrease of $2 million in Net Capital Assets after an increase in depreciation of $6.3 million as shown in the Notes on page 46 and 47. Table E City of Ashland's Capital Assets (In thousands dollars) Total Governmental Business-type Percentage Activities Activities Total Change 2008 2007 2008 2007 2008 2007 2008-2007 Land $ 9,829 $ 9,829 $ 1,881 $ 1,881 $ 11,710 $ 11,710 0.0% Buildings and improvements 19,563 19,563 21,782 21,782 41,345 41,345 0.0% Equipment 14,380 13,184 824 674 15,204 13,858 9.7% Infrastructure 42,250 42,122 84,636 81,141 126,886 123,263 2.9% Construction in progress 674 143 3,982 5,156 4,656 5,299 Totals at historical cost 86,696 84,841 113,105 110,634 199,801 195,475 2.2% Total accumulated depreciation 38,631 35,789 35,041 31,502 73,672 67,291 9.5% Net capital assets $ 48,065 $ 49,052 $ 78,064 $ 79,132 $ 126,129 $ 128,184 -1.6% The City's fiscal year 2009 capital budget estimates spending $10.3 million on capital projects including construction of water lines and line replacement, wastewater and street improvements. Bond proceeds, some cash reserves and systems development charge balances will be used to fund these capital projects. Reserves in the Equipment Fund will be used to purchase several vehicles, various pieces of utility equipment and software. More detailed information about the City's capital assets is presented in the notes to the financial statements beginning on page 46. Long Term Debt Bond Ratings The City issued $304,000 of Clean Renewable Energy Bonds as authorized by the U.S. Treasury during FY 2007-2008 to build a photovoltaic system for the Electric system. This small financing may not be indicative of how the City would due in today's bond market. The City has not issued major revenue bonds since it issued $2,560,000 in General Obligation bonds refunding a portion of the City's General Obligation Bonds, Series1997 and Series 2000 bonds on December 1, 2005, with an interest rate ranging from 3.50/0 to 5.00/0 over the fifteen year life. The refunding resulted in a $121,962 (4.410/0) net present value savings. Moody's assigned an "Aaa" rating to the bonds due to the fact that the bonds are insured by Financial Security Assurance, Inc. The underlying rating to these bonds was "A2." The City's bonds presently carry Moody's "Aaa" ratings with insurance and under lying ratings as follows: General Obligation Bonds at "A2" and Water Revenue Bonds at "A3". comprehensive annual financial report page 15 At year-end the City had $39.9 million in bonds and notes outstanding as shown in Table F. This is $1.9 million or 4.60/0 less than the prior year. More detailed information about the City's debt is presented in the Notes to the financial statements beginning on page 50. Table F City of Ashland's General Obligation Long Term Debt (In thousands dollars) Total bonds & notes Total Govemmental Business-type Perce ntage Activtties Activities Total Change 2008 2007 2008 2007 2008 2007 2008-2007 $ 18,160 $ 18,575 $ 680 $ 850 $ 18,840 $ 19,425 -3.0% 2,327 2,639 18,687 19,712 21,014 22,351 -6.0% $ 20,487 $ 21,214 $ 19,367 $ 20,562 $ 39,854 $ 41,776 -4.6% Bonds payable Notes payable ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES · Growth in assessed value used for the 2009 budget preparation was projected at 30/0 per the Measure 50 limitation and 20/0 for new construction. · Projections for new construction for 2009 is up $35 million or 20/0. · General Fund budgeted spending for 2009 increases over 2008's budget of $16.3 million by $100,000 to $16.4 million. This is a 10/0 increase. These indicators were taken into account when adopting the General Fund budget for 2009. The amounts available for appropriation in the General Fund budget was estimated to be $15.8 million in resources and a working capital carry over of $1.7 million. The actual carry forward for the General Fund budget is $2.3 million. General Fund Tax revenues are projected to increase $1.2 million (11 % over actual for 2008) to $11.2 million yet property taxes are a small part of the total thus most of the increase is budgeted in the Electric User, Transient Occupancy and Franchise taxes. The City will use these increases to finance programs currently offered. The largest inaements in budgeted expenditures for 2008 are increased benefit and retirement costs for staffing, internal charges and fuel-related and operating costs. The citizens approved adding interim financing for library operations via a local option levy for 2008 and 2009. The estimated tax revenue and cost is approximately $300,000 per year. No other new major programs were added to the 2009 budget but increased emphasis on strategic planning and fiscal stability were added. CONTACTING THE CITY'S FINANCIAL MANAGEMENT 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 Services Department at 20 East Main, Ashland, Oregon, 97520, (541) 488-5300. page 16 city of ash/and BASIC FINANCIAL STATEMENTS comprehensive annual financial report page 17 1-- CITY OF ASHLAND, OREGON STATEMENT OF NET ASSETS June 30, 2008 Primary Government Component Unit Parks Governmental Business-type and Activities Activities Total Recreation ASSETS Assets: Cash and cash equivalents $ 9,845,351 $ 6,437,889 $ 16,283,240 $ 1,796,482 Receivables (net of allowance for uncollectibles) 2,444,054 2,190,239 4,634,293 469,735 Inventories 59,984 881,530 941,514 Deferred charges 1,215,668 1,215,668 Internal Balances (1,304,641) 1,304,641 Restricted assets: Cash and cash equivalents 1,240,543 1,240,543 Capital Assets: Land 9,829,360 1,880,638 11,709,998 Buildings 19,563,238 21,782,187 41,345,425 12,939,833 Machinery and equipment 14,380,378 823,581 15,203,959 1,965,596 Infrastructure 42,249,665 84,636,278 126,885,943 536,322 Construction in progress 673,643 3,981,724 4,655,367 Accumulated Depreciation (38,631,224) (35,041,272) (73,672,496) (5,532,617) Total assets $ 60,350,351 $ 90,093,103 $ 150,443,454 $ 12,175,351 Liabilities: Accounts payable and other current liabilities $ 2,672,369 $ 1,571,810 $ 4,244,179 $ 292,931 Accrued interest payable 449,038 144,127 593,165 Noncurrent liabilities: Due within one year 1,327,360 1,595,081 2,922,441 23,410 Due in more than one year 19,263,447 22,056,168 41,319,615 70,229 Total liabilities 23,712,214 25,367,186 49,079,400 386,570 Net Assets Invested in capital assets, net of related debt 27,474,253 54,411,887 81,886,140 9,909,134 Restricted for: System development 2,146,609 3,838,867 5,985,476 Debt service 1,246,509 1,751,369 2,997,878 Asset Forfeiture 236,514 236,514 Perpetual care: Nonexpendable 771,948 771,948 Unrestricted 4,762,304 4,723,794 9,486,098 1,879,647 Total net assets $ 36,638,137 $ 64,725,917 $ 101,364,054 $ 11,788,781 The accompanying notes are an integral part of the basic financial statements. comprehensive annual financial report page 1 9 I -- CITY OF ASHLAND, OREGON STATEMENT OF ACTIVITIES For the year ended June 30, 2008 Functions\Proarams Primary Government: Governmental Activities: General Government Public Safety Highways and Streets I nterest on long-term debt Total governmental activities Expenses Charges for Services Program Revenues Operating Grants and Contributions Capital Grants and Contributions $ 4,876,071 $ 5,834,339 $ 11,555,693 1,524,229 4,000,048 1,975,425 1,178,388 21,610,200 9,333,993 2,122 $ 98,302 178,186 100,424 178,186 Business-type Activities: Water Wastewater Electric Telecommunications Total business-type activities Total primary government 4,959,525 4,121,028 48,096 5,261,713 2,734,499 13,876,456 12,260,230 67,620 2,756,528 1,709,705 26,854,222 20,825,462 115,716 $ 48,464,422 $ 30,159,455 $ 216,140 $ 178,186 Component Unit: Ashland Parks and Recreation $ 7,474,607 $ 890,905 $ 733,847 $ General Revenues: Property taxes Utility users tax Users Taxes State subventions - unrestricted Unrestricted interest earnings Miscellaneous Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending The accompanying notes are an integral part of the basic financial statements. page 20 city of ash/and Net (Expense) Revenue and Changes in Net Assets Primary Government Governmental Business-type Activities Activities Total Component Unit Ashland Parks and Recreation $ 1,138,576 $ 1,138,576 $ (9,933,162) (9,933,162) (2,024,623) (2,024,623) (1,178,388) (1,178,388) (11 ,997,597) (11,997,597) (790,401) (790,401 ) (2,527,214) (2,527,214) (1,548,606) (1,548,606) (1,046,823) (1,046,823) (5,913,044) (5,913,044 ) (11,997,597) (5,913,044) (17,910,641) (5,849,855) 4,170,062 4,170,062 6,434,459 3,945,382 3,945,382 1,899,320 1,568,385 3,467,705 247,357 247,357 444,557 459,073 903,630 104,150 779,133 388,701 1,167,834 137,340 11,485,811 2,416,159 13,901,970 6,675,949 (511,786) (3,496,885) (4,008,671 ) 826,094 37,149,923 68,222,802 105,372,725 10,962,687 $ 36,638,137 $ 64,725,917 $ 101,364,054 $ 11,788,781 comprehensive annual financial report page 21 CITY OF ASHLAND, OREGON BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2008 Other Total Governmental Governmental General Street Funds Funds ASSETS Assets: Cash and cash equivalents $ 2,315,107 $ 2,284,895 $ 1,842,838 $ 6,442,840 Receivables (net of allowance for uncollectibles) 1,268,816 276,436 867,483 2,412,735 Cash - restricted 1,240,543 1,240,543 Total assets $ 3,583,923 $ 2,561,331 $ 3,950,864 $ 10,096,118 LIABILITIES, AND EQUITY Liabilities: Accounts payable $ 583,495 $ 264,103 $ 79,233 $ 926,831 Deferred revenue 417,395 126,758 717,662 1,261,815 Due to other agencies Due to other funds 80,000 80,000 Liabilities payable from restricted assets 286,367 286,367 Total liabilities 1,287,257 390,861 876,895 2,555,013 Fund Balances: Reserved for: Reserved for system development charges 2,049,977 96,632 2,146,609 Reserved for debt service 1,246,509 1,246,509 Reserved for asset forfeiture 236,514 236,514 Reserved for perpetual care 771,948 771,948 Unreserved, reported in: General Fund 2,060,152 2,060,152 Special revenue funds 120,493 6,891 127,384 Capital projects funds 951,989 951,989 Total fund balances 2,296,666 2,170,470 3,073,969 7,541,105 Total liabilities and fund balances $ 3,583,923 $ 2,561,331 $ 3,950,864 $ 10,096,118 The accompanying notes are an integral part of the basic financial statements. page 22 city of ash/and CITY OF ASHLAND, OREGON RECONCiliATION OF BALANCE SHEET OF GOVERNMENTAL FUNDS TO STATEMENT OF NET ASSETS June 30,2008 Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net assets. Fund Balances $ 7,541,105 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 assets includes those capital assets among the assets of the City as a whole. Net Capital Assets 44,535,847 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 assets. Long-term Uabil ities Accrued Interest on Liabilities (20,487,217) (449,038) Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. Accrued Vacation and Sick Leave (534,516) Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds. Deferred Revenue 1,261,814 Internal service funds are used by the City to account for the fleet operations, support services, administrative service 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 Assets. Internal Service Fund Net Assets 4,770,142 Total Net Assets $ 36,638,137 The accompanying notes are an integral part of the basic financial statements. comprehensive annual financial report page 23 CITY OF ASHLAND, OREGON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the year ended June 30, 2008 Other General Street Governmental Total Primary Fund Fund Funds Government Revenues: Taxes $ 10,243,372 $ 188,030 $ 773,4 74 $ 11,204,876 Fees, Licenses and Permits 886,644 886,644 I ntergovern mental 662,102 942,746 244,066 1,848,914 Charges for Services 1 ,441,157 1,692,436 2,244,720 5,378,313 System Development Charges 167,486 48,307 215,793 Assessments 67,195 67,195 Fines and Forfeitures 150,346 150,346 Interest on Investments 113,937 110,992 105,484 330,413 Miscellaneous 91,203 400 695,556 787,159 Total Revenues 13,588,761 3,169,285 4,111,607 20,869,653 Expenditures: General Government 3,328,964 1,105,777 4,434,741 Public Saftey 10,578,525 10,578,525 Highways and Streets 3,376,035 3,376,035 Debt Service 1,852,049 1,852,049 Total Expenditures 13,907,489 3,376,035 2,957,826 20,241,350 Excess(Deficiency) of Revenues over Expenditures (318,728) (206,750) 1,153,781 628,303 Transfer in 33,180 303,073 336,253 Transfers out (500) (335,753) (336,253) Total other financing sources (uses) 32,680 (32,680) Net Change in Fund Balance (286,048) (206,750) 1,121,101 628,303 Fund Balance, July 1, 2007 2,582,714 2,377,220 1,952,868 6,912,802 Fund Balance, June 30, 2008 $ 2,296,666 $ 2,170,470 $ 3,073,969 $ 7,541,105 page 24 city of ash/and 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 30,2008 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 $ 628,303 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 depreciation in the current period. Capital Outlay Expenditures Capitalized Depreciation Expense 728,959 (1,896,796) Under the modified accrual basis of accounting used in the governmental funds. expenditures are not recognized for transactions that are not normally paid with expendable available financial resources. In the statement of activities, however, 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 Accrued Interest General Obligation Bonds & Notes Payable (153,804) (52,828) 726,491 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. Property Taxes Special Assessments Other 24,009 (5,592) (64,300) Internal service funds are used by the City to account for the fleet operations, support services, administrative service and insurance services that are provided to the other departments and agencies on a cost reimbursement basis. The revenues and expenses of the internal service funds are included in governmental activities in the statement of activities. Internal Service Fund Change in Net Assets (446,228) Change in Net Assets $ (511,786) The accompanying notes are an integral part of the basic financial statements. comprehensive annual financial report page 25 ---------,---. --- CITY OF ASHLAND, OREGON STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30,2008 Governmental T elecom- Activities Water Wastewater Electric munications Internal Service Fund Fund Fund Fund Total Funds ASSETS Current assets: Cash and investments $ 1,690,020 $ 3,299,078 $ 776,046 $ 672,745 $ 6,437,889 $ 3,402,511 Interest and accounts receivable, net 336,590 549,799 839,957 253,311 1,979,657 3,232 Notes and contracts receivable 210,582 210,582 28,087 Interfund receivable 80,000 80,000 Inventories 204,681 11,881 664,968 881,530 59,984 Deferred charges 157,213 157,213 Total current assets 2,468,504 3,860,758 2,491,553 926,056 9,746,871 3,493,814 Capital assets 34,537,989 49,588,553 19,764,506 9,213,359 113,104,407 11,699,346 Accumulated depreciation (12,376,671) (9,448,504) (9,915,957) (3,300,140) (35,041,272) (8,170,132) Capital assets, net 22,161,318 40,140,049 9,848,549 5,913,219 78,063,135 3,529,214 Other assets Deferred costs (net of amortization) 1,058,455 1,058,455 Noncurrent assets 22,161,318 40,140,049 9,848,549 6,971,674 79,121,590 3,529,214 Total assets $ 24,629,822 $ 44,000,807 $ 12,340,102 $ 7,897,730 $ 88,868,461 $ 7,023,028 LIABILITIES AND NET ASSETS Current liabilities: $ 257,776 $ 63,839 $ 560,607 $ 30,119 $ 912,341 $ 140,118 Accrued salaries, vacation and payroll taxes 141,046 64,274 181,133 54,281 440,734 343,055 Accrued interest payable 38,762 105,365 144,127 Other liabilities 50,647 168,088 218,735 545,072 Notes/bonds payable, current portion 510,000 1,060,081 25,000 1,595,081 Total current liabilities 998,231 1,293,559 934,828 84,400 3,311,018 1,028,245 Long-term liabilities: Notes payable Revenue bonds payable, net 3,645,000 17,627,168 279,000 21,551,168 General obligation bonds payable, net 505,000 505,000 Total long-term liabilities 4,150,000 17,627,168 279,000 22,056,168 Total liabilities 5,148,231 18,920,727 1,213,828 84,400 25,367,186 1,028,245 Net Assets: Net assets (deficit): Invested in capital assets, net of related debt 17,501,318 21,452,800 9,544,549 5,913,219 54,411,886 3,529,214 Restricted for system development 1,978,487 1,860,380 3,838,867 Restricted for debt service 1,751,369 1,751,369 Unrestricted 1 ,786 15,531 1,581,725 1,900,111 3,499,153 2,465,569 Total net assets 19,481,591 25,080,080 11,126,274 7,813,330 63,501,275 5,994,783 Total liabilities and net assets $ 24,629,822 $ 44,000,807 $ 12,340,102 $ 7,897,730 $ 88,868,461 $ 7,023,028 Total net assets $ 63,501,275 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 1,224,642 Net assets of business-type activities $ 64,725,917 page 26 city of ash/and The accompanying notes are an integral part of the basic financial statements. CITY OF ASHLAND, OREGON STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS For the year ended June 30,2008 Governmental Telecom- Activiti es Water Wastewater Electric munications Internal Service Fund Fund Fund Fund Total Funds Operating revenues: Charges for services $ 4,121,028 $ 2,734,499 $ 12,260,230 $ 1,709,705 $ 20,825,462 $ 6,923,563 Miscellaneous 27,663 3,167 186,488 69,788 287,106 262,095 Total operating revenues 4,148,691 2,737,666 12,446,718 1,779,493 21,112,568 7,185,658 Operating expenses: Cost of sa les and services 3,477 ,3OT 3,066,515 11,946,515 1 ,781 ,834 20,272,221 7,155,560 Depreciation and amortization 1,014,115 1,113,642 598,561 937,276 3,663,594 945,196 Total operating expenses 4,491,472 4,180,157 12,545,076 2,719,110 23,935,815 8,100,756 Operating income (loss) (342,781 ) (1,442,491 ) (98,358) (939,617) (2,823,247) (915,097) Nonoperating income (expenses): Taxes 1,267 1 ,566,868 250 1,568,385 12,366 Intergovernmental 48,096 67,620 115,716 Interest income 123,528 178,212 55,827 29,251 386,818 174,033 Tax equivalents (275,364) (195,225) (1,168,473) (1,639,062) Gain (loss) on disposal of assets Interfund Transfers Interest expense (65,375) (757,648) (823,023) Total nonoperating income (expenses) (167,848) 792,207 (1,045,026) 29,501 (391 ,166) 186,399 (510,629) (650,284) (1,143,384) (910,116) (3,214,413) (728,698) Total net assets - beginning 19,992,220 25,730,364 12,269,658 8,723,446 66,715,688 6,723,481 Total net assets - ending $ 19,481,591 $ 25,080,080 $ 11 ,126,274 $ 7,813,330 $ 63,501,275 $ 5,994,783 Change in net assets $ (3,214,413) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (282,472) Change in net assets of business-type activities - Statement of Activities $ (3,496,885) The accompanying notes are an integral part of the basic financial statements. comprehensive annual financial report page 27 I-~-- CITY OF ASHLAND, OREGON STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the year ended June 30, 2008 Business-type Activities - Enterprise Funds Governmental T elecom- Activities Water Wastewater Electric munications Internal Service Fund Fund Fund Fund Total Funds Cash flows from operating activities: Receipts from customers and users $ 4,232,824 $ 2,729,179 $ 12,350,756 $ 2,652,248 $ 21,965,007 $ 7,210,455 Payments to suppliers (2,017,382) (2,320,863) (9,892,506) (1,987,117) (16,217,868) (3,221,556) Payments to employees (1,469,921) (775,407) (2,073,017) (625,796) (4,944,141 ) (4,070,617) Net cash from operating activities 745,521 (367,091) 385,233 39,335 802,998 (81,718) Cash flows from noncapital financing activities: Proceeds from (payment of) interfund and other loans Transfers Taxes collected 1,267 1,566,868 250 1,568,385 Net cash from noncapital financing activities 1,267 1,566,868 250 1,568,385 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (1,399,029) (519,817) (441,143) (235,053) (2,595,042) (1,126,340) Proceeds from issuance of debt 304,000 304,000 Proceeds from intergovernmental income Principal paid on bonds, contracts and notes (495,000) (1,024,634) (1,519,634) Interest paid on debt (65,375) (757,648) (823,023) Tax Equivalents (275,364) (195,225) (1,168,473) (1,639,062) Net cash from capital and related financing activitie (2,234,768) (2,497,324) (1,305,616) (235,053) (6,272,761) (1,126,340) Interest from investments and Other income 171,624 178,212 123,447 29,251 502,534 186,399 Net increase (decrease) in cash and investments (1,316,356) (1,119,335) (796,936) (166,217) (3,398,844) (1,021,659) Cash and investments, beginning of year 3,006,376 4,418,413 1,572,982 838,962 9,836,733 4,424,170 Cash and investments, end of year $ 1,690,020 $ 3,299,078 $ 776,046 $ 672,745 $ 6,437,889 $ 3,402,511 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ (342,781) $ (1,442,491 ) $ (98,358) $ (939,617) $ (2,823,247) $ (915,097) Depreciation and amortization 1,014,115 1,113,642 598,561 937,276 3,663,594 945,196 Change in assets and liabilities: (Increase) decrease in: Receivables 84,133 (8,487) (95,962) (64,521 ) (84,837) 24,796 Inventories 41,796 870 (118,148) (75,482) (23,811) Deferred charges 14,752 109,969 124,721 Increase (decrease) in: Accounts payable and accrued liabilities (39,725) (14,289) 113,011 (5,712) 53,285 (166,807) Other liabilities (26,769) (16,336) (13,871) 1,940 (55,036) 54,005 Net cash from operating activities $ 745,521 $ (367,091) $ 385,233 $ 39,335 $ 802,998 $ (81,718) The accompanying notes are an integral part of the basic financial statements. page 28 city of ash/and NOTES TO BASIC FINANCIAL STATEMENTS comprehensive annual financial report page 31 CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 I. 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 entity for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City's operations. Discretely presented component units are reported in a separate column in the government- wide financial statements. There are no blended component units. Discretely Presented 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 Charter, the Commission has control over all park designated lands within the City. By City Charter, the Commission 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 Commission is presented as a governmental fund type. Complete financial statements of the component unit may be obtained at the entity's administrative office. B. Government-Wide and Fund Financial Statements Governmental Accounting Standards Boards Statement 34 (GASBS 34). The new presentation of financial information required by GASBS 34 for Basic Financial Statements and Supplementary Information are described below and in the Management's Discussion and Analysis located earlier in this document. comprehensive annual financial report page 33 '-----r- CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (continued) The government-wide financial statements (Le. the statement of net assets and the statement of changes in net assets) report information on the nonfiduciary activities of the primary government 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 purchase, 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 particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. 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 focus 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 provider have been met. page 34 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Basis of Presentation (continued) 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 Prindples. 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 considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures 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 judgements, are recorded only when the payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are accruable and so have been recognized as revenues of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: 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. 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 substantial portion of revenues come from user fees, the primary source is state shared highway funds. The City reports the following major proprietary funds: The Water Fund accounts for the resources and expenses related to supply, treatment and distribution of water throughout the City. The primary source of revenue is user fees. comprehensive annual financial report page 35 -r-.--~ ..., ___ ~____--L-.--ll CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30,2008 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Basis of Presentation ( conti nued) 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. 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. 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: Internal Service Funds account for general and public works administration, finance, information services, 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 business-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 various 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. page 36 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Basis of Presentation ( continued) Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses result from providing and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The enterprise and internal service funds are charges to customers for sales and services. Where applicable, enterprises also recognize as operating revenue the portion of System Development Charges intended to recover the cost of connecting new customers to the system. 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 nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources to the limits of the policies and statutes governing them first, then unrestricted resources as they are needed. D. Assets, Liabilities and Net Assets or Equity 1. Cash and Investments The City's cash and cash equivalents are considered to be 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. comprehensive annual financial report page 37 CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities and Net Assets or Equity (continued) 1. Cash and Investments (continued) Investments for the City, as well as for its component unit, are reported at fair value. The State Treasurer'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 between the governmental and business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not expendable available financial resources. All trade and property taxes receivable are shown at net of an allowance for uncollectibles. Trade aocounts receivable in excess of 120 days comprise the trade accounts receivable allowance for uncollectibles. Property taxes are levied as of July 1 on property assessed as of the same date. The tax levy is due November 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 penalties and interest are assessed. Notes and contracts receivable are recorded at par. Interest assessed is recorded as revenue when the payment beoomes due. page 38 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities and Net Assets or Equity (continued) 3. Inventories and Prepaid Items All inventories are stated at moving average cost. Inventories are recorded as expenditures when consumed rather than when pu rchased. 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 assets 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 provision of current and noncurrent 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 assets 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 induded as a part of the capitalized value of the asset constructed. No interest was capitalized in the current accounting period. comprehensive annual financial report page 39 II II CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities and Net Assets or Equity (continued) 5. Capital Assets (continued) 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 Electric power generation and distribution system Water, wa stewater and storm water system s Public domain infrastructure Equipment 33 to 50 years 40 to 70 years 15 to 50 years 15 to 25 years 2 to 20 years 6. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay any amounts when employees separate from service with the City. All vacation pay is accrued when incurred 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 resources. 7. Long-Term Obligations I n 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 assets. 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 premium or discount. Bond issuance oosts are reported as deferred charges and amortized over the term of the related debt. page 40 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30,2008 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities and Net Assets or Equity (continued) 7. Long Term Obligations (continued) I n 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. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Reservations of Fund Equity I n the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information The annual budgets are adopted for all funds on a basis consistent with generally accepted accounting principles for governmental funds, except the Mt. Ashland Ski Area Agency Fund. The City Council resolution adopting the budget and authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. 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 contingency for those funds with only one department or function. The detail budget document, however, is required to contain more specific, detailed information for the above-mentioned expenditure categories. The City budgets debt service princi pal and interest on a cash basis and does not budget depreciation expense 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 comprehensive annual financial report page 41 II CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED) A. Budgetary Information (continued) by the City Council by 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 appropriation amounts shown in the financial statements include the original and revised budget appropriations as approved by the City Council. Appropriations are limited to a single fiscal year; therefore, all spending authority of the City lapse at year end. During 2007-2008, the City made two appropriation transfers, as well as three supplemental budget adjustments, adopted by resolutions. B. Excess of Expenditures Over Appropriations Expenditures of the various funds were within authorized appropriations for the year ended June 30, 2008. III. DETAILED NOTES ON ALL FUNDS Petty Cash Deposits with financial institutions I nvestm ents Total Primary Govern ment $ 2,810 1,058,704 16,462,269 Com pon ent Unit Parks and Recreation $ 750 A. Deposits and Investments 1,795,732 Total $ 3,560 1,058,704 18,258,001 $ 17,523,783 $ 1,796,482 $ 19,320,265 Governrnental - unrestricted Governmental - restricted: Debt Service Fidu cia ry $ 16,283,240 1 ,240,543 $ 17,523,783 DEPOSITS State statutes require that the City obtain from its depositories a certificate of participation for the full amount of the City's deposits that exceed FDIC coverage. The depositories are required to pledge, with an independent collateral pool manager, as agent for the City, page 42 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Deposits and Investments (continued) securities in the City's name at least equal to twenty-five percent of the face value of the certificate of participation issued to the City. Not all of the City's deposits at year-end were covered, as required by law, by federal depository insurance or by certifications of participation backed by securities held by financial institutions acting as agents for the City in the City's name. Deposits consist of bank demand deposits. The carrying amount of deposits is $1,058,704. The total bank balance perthe bank statements is $1,217,790. Of these deposits, $102,000 is covered by federal depository insurance and the remaining is uninsured and uncollateralized. At June 30, 2008, the collateral was sufficient to meet the requirements of Oregon Law. 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. GovernmentAgency Securities and Instrumentalities of Government Sponsored Corporations, Bankers' Acceptances (BA's), Certificates of Deposit (Commercial Banks which have a branch in Oregon &Savings & Loan Associations which have a branch in Oregon), State & Local Government Securities, Commercial Paper (A 1, AA,P1), State of Oregon Investment Pool, and Repurchase Transactions. 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 30,2008, the City had the following investments and maturities: Investment Tvoe Fair Value Certificates of Deposit $ 500,000 US Govemment Securities State Treasurer's investment pool 17,758,001 Investment Maturities (in months) Less than 3 3-17 18-59 $ 500,000 $ $ 17,758,001 $18,258,001 $18,258,001 $ $ Total comprehensive annual financial report page 43 II CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Deposits and Investments (continued) Investments are valued at fair value as required by GASB 31. There is no material difference between fair value of the City's position in the State Treasurer's Local Governmental Investment Pool and the value of the pool shares at June 30, 2008. Interest Rate Risk As a means of limiting its exposure to fair value losses resulting from rising interest rates, City's investment 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 investments to 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 100/0 minimum 2. Under 90 days 250/0 minimum 3. Under 270 days 500/0 minimum 4. Under 1 year 750/0 minimum 5. Under 18 months 800/0 minimum 6. Under 3 years 1000/0 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 MA by Standard & Poor's and Aaa by Moody's Investor Service. The State Pool is unrated. Oregon Revised Statutes require bankers' acceptances to be guaranteed by and carried on the books of, a qualified financial institution, eligible for discount by Federal Reserve System, and issued by a qualified financial institution whose short-term letter of credit rating is rated in the highest category by one or more nationally recognized statistical rating organizations. page 44 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Deposits and Investments (continued) 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 anyone type of security. At June 30,2008 the City was in compliance with all percentage restrictions. Oregon Revised Statutes require no more than 25 percent of the moneys of local government to be invested in bankers' acceptances of any qualified financial institution. Amounts in the State Treasurer's Local Government Investment Pool 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 categories of securities: U.S. Treasury Obligations U.S. Government Agency Securities and Instrumentalities of Government Sponsored Corp. Bankers' Acceptances (BA's) Certificates of Deposit (CD) State & Local Government Securities Repurchase Transactions Commercial Paper (AA,A 1 ,P1 ) State of Oregon I nvestment Pool Securities 1000/0 1 000/0 500/0 350/0 350/0 250/0 100/0 1 000/0 B. Receivables Receivables, as of year end for the government's individual major funds and nonmajor, internal service in aggregate, including the applicable allowances for uncollectable accounts, are as follows: Governmental funds report deferred revenue in connection with receivables for revenues 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 deferred revenue and unearned revenue reported in governmental funds were as follows: comprehensive annual financial report page 45 II CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) B. Receivables (continued) Delinquent Property Taxes Receivable: Ge neral Fund Debt Service Fund Installment notes receivable Rehabilitation Loans Deferred SDC Loans Ambulance billing Business Licenses Special Assessments not yet due: Unbonded-Street Fund C. Capital Assets Unavailable 206,719 19,521 410,999 105,936 181,205 113,838 96,839 126,758 $ 1,261,81 5 Capital asset activity for the year ended June 30, 2008 was as follows: Balance Add ttion s Retirements Bala nce June 30, 2007 & Reclasses & Reclasses June 30, 2008 Govemmental activities: Capital assets, not being depreciated Land $ 9,829,360 $ 9,829,360 Construction in progress 143,017 658,691 128,065 673,643 Total capttal assets, not being depreciated 9,972,377 658,691 128,065 10,503,003 Buildings 19,563,238 19,563,238 Improvements other than buildings 42,121 ,600 128,065 42,249,665 Machinery and equipment 13,183,769 1,210,639 14,030 14,380,378 Total capttal assets, being depreciated 74,868,607 1,338,704 14,030 76,193,281 Less accumulated depreciation for: Buildings (4,180,831 ) (440,269) (4,621,100) Improvements other than buildings (22,059,234) (1,303,931 ) (23,363,165) Machinery and equipment (9,549,166) (1,097,793) (10,646,959) Total accumulated depreciation (35,789,232) (2,841,993) (38,631,224) Total capttal assets being depreciated, net 39,079,374 (1,503,289) 37,562,057 Govemmental activities capital assets, net $ 49,051,751 $ (844,598) $ 128,065 $ 48,065,060 page 46 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30,2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) C.Capital Assets (continued) Sa lance Additions Retirem ents Ba lance June 30, 2007 & Reclasses & Reclasses June 30, 2008 Business-type activities: Capital assets, not being depreciated Land $ 1,880,638 $ $ $ 1,880,638 Construction in progress 5,156,412 2,100,343 3,275,031 3,981,724 Total capital assets, not being depreciated 7,037,050 2,100,343 3,275,031 5,862,362 Buildings 21,782,187 21 ,782,1 87 Machinery and equipment 673,607 149,974 823,581 Improvements other than buildings 81,141,248 3,495,030 84,636,278 Total capital assets, being depreciated 103,597,042 3,645,004 107,242,046 Less accumulated depreciation: Buildings (2,478,412) (480,670) 7 (2,959,075) Machinery and equipment (559,916) (61,059) (620,975) Improvements other than buildings (28,464,074) (2,997,148) (31,461,222) Total accumulated depreciation (31,502,402) (3,538,877) 7 (35,041,272) Total capital assets being depreciated, net 72,094,640 106,127 (7) 72,200,774 Business-type activities capital assets, net $ 79,131,690 $ 2,206,470 $ 3,275,024 $ 78,063,136 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government Public Safety Highways and Streets $ 561 ,4 76 1,790,749 489,768 $ 2,841,993 comprehensive annual financial report page 47 II CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) C. Capital Assets (continued) Construction Commitments The government has active construction projects as of June 30, 2008. 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 $1,254,199 at June 30,2008. D. Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2008, is as follows: Transfers Transfers Fund In Out General Fund $ 33,180 $ 500 Nonmajor Governmental 303,073 335,753 Total $ 336,253 $ 336,253 Receivable Fund Payable Fund Water Nonmajor Governmental Amount $ 80,000 $ 80,000 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 revenues. page 48 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) 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, oonstruction of a three level parking strudure, federally mandated oonstruction of wastewater treatment facilities, and startup oonstruction 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, the wastewater treatment facility by both 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 5.5-8.5% $ 372,076 Government activities 8.00% 173,454 Government activities 4.40% 807,226 Government activities 5.00% 779,912 Government activities 4.68% 194,549 Business-type activities 4.20% 18,687,249 $ 21,014,466 comprehensive annual financial report page 49 II CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Long-Term Debt (continued) 1. Un bonded Long-Term Debt (Notes and Contracts) Promissory note debt service requirement to maturity is as follows: Year ending Governmental Adivnies Business-type Adivnies Total June 30, Principal Interest Principal Interest Pri nci pal Interest 2009 $ 580,434 $ 112,816 $ 1,060,081 $ 722,768 $ 1,640,515 $ 835,584 2010 295,859 85,884 1,096,753 680,704 1,392,612 766,588 2011 297,284 71,797 1,134,694 637,185 1,431,978 708,982 2012 236,894 58,990 1,173,947 592,162 1,410,841 651,152 2013 230,605 48,838 1,214,560 545,578 1,445,165 594,416 2014-2018 217,690 163,693 6,732,883 1,970,768 6,950,573 2,134,461 2019-2023 231 ,872 106,224 6,274,331 558,035 6,506,203 664,259 2024-2028 236,579 33,898 236,579 33,898 2029-2030 $ 2,327,217 $ 682,140 $ 18,687,249 $ 5,707,200 $ 21,014,466 $ 6,389,340 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. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds oonsist of a 3D-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 outstanding are as follows: Purpose Government activities Government activities Government activities Business-type activities Business-type activities-refunding Interest Rates 3.7-6.02% $ 5.0-5.875% 3.5-5.0% 5.0-7.0% 3.75-4.65% Amount 15,305,000 295,000 2,560,000 25,000 655,000 $ 18,840,000 page 50 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Long-Term Debt (continued) 2. General Obligation Bonds (continued) The above table includes $15.5 million in General Obligation bonds issued to refinance the outstanding loans entered into to build and operate the Ashland Fiber Network (AFN). This bond is a full faith and credit obligation of the City and is payable from any and all taxes and other legally available funds of the City. To the extent available, the City expects to use revenues of the AFN system to pay the Series 2004 Bonds, but they are not secured by a pledge of, or lien on, such revenues. In FY 2005-2006 the City Council approved the transfer from the Telecommunications Fund and Business type activities presentation to the Debt Service Fund and Governmental Activities presentations in recognition of the decision to use any available revenues streams to meet the annual debt service obligation. Future maturities of bond principal and interest at June 30, 2008, are as follows: 1997 Flood Year Ending 1977 Water GO Bonds and Refunding GO Bonds 2004 Full Faith and Credit June 30, Pri ncipal Interest Pri nci pal Interest Principal Interest 2009 $ 25,000 $ 5,000 $ 150,000 $ 26,458 $ 450,000 $ 848,303 2010 160.000 19,558 605.000 826,378 2011 170,000 12,048 630,000 798.744 2012 175,000 4,069 660,000 767,666 2013 695,000 733,631 2014-2018 4,100,000 3,045,320 2019-2023 5,475.000 1.669,276 2024-2028 2,690,000 164,401 2029-2030 $ 25,000 $ 5,000 $ 655.000 $ 62,131 $ 15,305.000 $ 8,853,719 Year Ending 2000 GO Bonds 2005 GO Bonds Total June 30, Pri ncipal Interest Pri nci pal Interest Principal Interest 2009 $ 145,000 $ 15,710 $ 100,000 $ 112,725 $ 870,000 $ 1,008,195 2010 150,000 8,025 110.000 109,225 1,025,000 963.186 2011 275,000 1 05,375 1,075,000 916,167 2012 290,000 95,750 1.125,000 867,485 2013 190,000 84,875 885,000 818,506 2014-2018 1,085,000 293,250 5,185,000 3,338.570 2019-2023 510,000 38,500 5.985,000 1,707,776 2024-2028 2,690,000 164,401 2029-2030 $ 295,000 $ 23.735 $ 2,560,000 $ 839,700 $ 18,840,000 $ 9,784,285 comprehensive annual financial report page 51 rl CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Long-Term Debt (continued) 3. Revenue Bonds The government also issues bonds where 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 upgrade of existing and addition of distribution infrastructure. In 2003 the remaining $2.75 million of these bonds were defeased with the issuance of $5.625 million for infrastructure construction and refunding of the original issue. On June 20, 2008, the government issued $304,000 in tax exempt, low-interest (1.250/0) 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. Interest Rates Amount 2.04.0% $ 3,980,000 1.25% 304,000 $ 4,284,000 Revenue bond debt service requirements to maturity are as follows: Purpose Water Electric Year Ending June 30, Principal Interest 2009 $ 356,714 $ 123,899 2010 366,714 115,599 2011 381,714 106,065 2012 391,714 95,294 2013 396,714 83,847 2014-2018 1,373,571 265,960 2019-2023 1,016,857 94,245 2024-2028 2029-2030 $ 4,284,000 $ 884,909 4. Advance and Current Refundings The government issued $2,040,000 in 1992 and $1,720,010 in 1997 of general obligation refunding bonds to provide resources to purchase U.S. Government State and Local Government Series securities that were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments of $1,870,000 and $1,625,000 of general obligation bonds. page 52 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Long-Term Debt (continued) 4. Advance and Current Refundings (continued) As a result, the refunded bonds are considered to be defeased and the liability has been removed from the business-type activities column of the statement of net assets. The reacquisition price exceeded the net carrying amount of the old debt by $265,010. This amount was netted against the new debt and amortized over the life of the refunded debt, which was shorter than the life of the new debt issued. These advance refundings 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. The government issued $2,952,833 in June, 2003, of revenue bonds 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 bonds issued in 1984. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the business-type activities column of the statement of net assets. 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 refunded debt, which was shorter than the life of the new debt issued. This advance refunding was undertaken to reduce total debt service payments by $386,048 over the term of the bonds and resulted 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 payoff existing bank loans of $4,286,000 and $2,532,000 borrowed to construct the Ashland Fiber Network (AFN). The loans' interest rates were 5.140/0 and 7.010/0 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 5.380/0. The refunding of the loans resulted in an economic loss of $1 ,631. In addition to refunding the bank loans, the bonds also provided $8.44 million in internal borrowing related to AFN. comprehensive annual financial report page 53 II CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Long-Term Debt (continued) 4. Advance and Current Refundings (continued) The City issued $2,560,000 in General Obligation bonds refunding a portion of the City's General Obligation Bonds, Series1997 and Series 2000 bonds on December 1, 2005, with an interest rate ranging fro 3.50/0 to 5.00,10 over the fifteen year life. The refunding resulted in a $121,962 (4.41%) net present value savings. The City's GO Bond, Series 2000 was insured by the FGIC originally and on February 14, 2008, Moody's downgraded FGIC's rating to A3 and as a consequence, the City's GO Bonds, Series 2000 have been downgraded to A2 (which is equal to the City's underlying rating of A2- higher than FGIC's A3 rating.) 5. Changes in Long-Term Liabilities Long-term liability activity for the year ended June 30, 2008, was as follows: Beginning Additions and Ending Due Within Balance Adjustments Reductions Balance One Year Governmental Activities: Bonds Payable: General obligation $ 18,575,000 $ - $ 415,000 $ 18,160,000 $ 695,000 Total bonds payable 18,575,000 415,000 18,160,000 695,000 Notes and Contracts 2,638,708 311,491 2,327,217 582,360 Claims and judgements 53,360 227,310 177,080 103,590 50,000 Government activities Long-term liabilities $ 21,267,068 $ 227,310 $ 903,571 $ 20,590,807 $ 1,327,360 Business-type Activities: Bonds Payable: General obligation $ 850,000 $ 170,000 $ 680,000 $ 175,000 Revenue 4,315,000 304,000 335,000 4,284,000 356,714 Total bonds payable 5,165,000 304,000 505,000 4,964,000 531,714 Notes and Contracts 19,711,883 1,024,634 18,687,249 1,060,081 Business-type Activities Long-term liabilities $ 24,876,883 $ 304,000 $ 1,529,634 $ 23,651,249 $ 1,591,795 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 $165,229 of internal service fund compensated absences, and $205,660 of internal service fund claims and judgements are included in the above amounts. page 54 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30,2008 III. DETAILED NOTES ON ALL FUNDS (CONTINUED) F. Restricted Assets The balances of the restricted asset accounts in the governmental and business-type are as follows: General Business-type Government Activities Unused System Development Charges: Street Fund $ 2,049,977 $ Capital Improvements Fund 96,632 Water Fund 1,978,487 Wastewater Fund 1,860,380 $ 2,146,609 $ 3,838,867 G Compensated Absences The General fund typically is 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 a Balance Additions Red uctio ns Ba Ia nce Year Governmental Activities: $ 498,761 $ 534,516 $ 498,761 $ 534,516 $ 133,629 Business-Type Activities: 389,803 407,816 389,803 407,816 101,954 Total Compensated Absences Payable $ 888,564 $ 942,332 $ 888,564 $ 942,332 $ 235,583 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 management programs for liability and workers compensation. comprehensive annual financial report page 55 II CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 IV. OTHER INFORMATION (CONTINUED) A. Risk Management (continued) 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 component 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, 2008, such premiums did not exceed paid claims and reserves. Effective April 1 , 2004, the potential component unit, Ashland Community Health Care (ACH), established a separate workers' compensation 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 reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, change in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement 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 exceeded coverages 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. No settlements have exceeded coverages. Changes in the balances of claims liability during the past two years are as follows: Unpaid claims, beginning of fiscal year Incurred claims (including IBNRs) Claim Payments Year ended June 30, 2008 $ 53,360 227,310 (177,080) Year ended June 30, 2007 $ 124,360 8,212 (79,212) Unpaid claims, end of fiscal year $ 103,590 $ 53,360 page 56 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 IV. OTHER INFORMATION (CONTINUED) B. Contingent Liabilities Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the government expects such amounts to be immaterial. The government is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the government's counsel the resolution of these matters will not have a material adverse effect of the financial condition of the government. The City leases, under agreement with the Forest Service, land that is a designated ski area to the Mt. Ashland Association (Ski Ashland), a non-profit organization, to conduct skiing activities. The permit with the Forest Service and the lease agreement recognize the need for reclamation of the area should skiing operations cease and the City, as the permit holder, is the responsible party. The lease agreement between the City of Ashland and Mt. Ashland Association estimates the cost of reclamation to be $305,680 at June 30,2008, and as requires Ski Ashland to maintain sufficient liquid assets to cover that cost. This amount is adjusted each January by the CPI U per the agreement. The City leases property to Ashland Community Hospital per a July 1, 1996, agreement when the hospital operation transitioned from a department to a non- profit service provider. As part of the lease agreement, the City maintained ownership of land, buildings and certain equipment and those assets are included within the City's governmental net fixed asset amounts. On January 13, 2004, the City agreed to subordinate rights to leased property in order for the hospital to borrow $10,000,000 for expansion. comprehensive annual financial report page 57 II I CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 IV. OTHER INFORMATION (CONTINUED) C. Other Postemployment Benefits In addition to providing pension benefits, the City provides certain benefits for 16 retired City employees who completed a minimum of 15 years employment with the City. The City pays a monthly stipend from the retiree's fifty-eighth birthday or date of retirement, whichever is later, until the retiree's death. These benefit obligations are required by labor bargaining agreements and the exempt employee ordinance. The cost of retiree benefits is recognized as an expense 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. For fiscal year 2008, costs advanced funded total $339,412, and are recorded in the Insurance Services Fund. The City has funded the estimated amount of benefits that will be payable in the future to eligible retirees. At present, the entire estimated liability is fully funded, and the City expects to fully fund future increases in this liability. Num ber of Fiscal Retirees Be nefits Year Covered Paid 2007 -08 15 $ 28,1 38 2006-07 15 28,525 2005-06 17 24,095 2004-05 16 23,903 2003-04 16 24,014 2002 -03 15 21,251 2001-02 15 20,4 00 2000-01 14 16,928 1999-00 13 11,212 1 998-99 14 13,146 1 997 -98 19 18,744 1 996 -97 15 12,338 1995-96 13 10,222 Significant assumptions used in the estimate include (a) a rate of return on the investment of present and future assets of 6.0%, and (b) annual rate increases of 4.0%. page 58 city of ash/and CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 IV. OTHER INFORMATION (CONTINUED) 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 Retirement Board as the governing body of PERS. PERS issues a publicly available financial report that includes financial statements and required supplementary information. That report can be obtained by writing 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 60/0 of their annual covered salary. The City is required by ORS 238.225 to contribute at an actuarially determined rate(s). In 2003 the Oregon Legislature revised OPERF operations and how benefits for existing and new employees is 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 and the new plan established in 2003 called Oregon Public Service Retirement Plan (OPSRP) and the current rates are 13.990/0 and 13.490/0 respectively of annual covered payroll. The City has "picked up" employee contributions at a rate of 60/0, 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 Oregon legislature. The City elected to join the Local Government Rate Pool in 2000 and the State & Local Rate Pool in 2002 to minimize annual variances in employer rates. For 2007 -2008, the City's annual pension cost of $2,456,749 was equal to the City's required and actual contributions. This consisted of $740,634 picked up and paid by the City on behalf of employees, and $1,716,115 paid by the City. The required contribution was determined as part of the December 31,2005, 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 actuarial assumptions include (a) 80/0 investment rate of return (net of administrative expenses), (b) projected salary increases of 4.250/0 per year attributable to general wage adjustments, with additional increases for promotion and longevity that vary by age and services, and (c) 20/0 per year cost-of-living adjustments. The underlying rate of inflation is 3.50/0 per year. comprehensive annual financial report page 59 II CITY OF ASHLAND NOTES TO FINANCIAL STATEMENTS June 30, 2008 IV. OTHER INFORMATION (CONTINUED) D. Employee Retirement System and Pension Plan (continued) Three-Year Trend Information for PERS: Fiscal Year EndinQ 06/30/2008 06/30/2007 06/30/2006 GASB Statement No. 27 Required Disclosures Three Year Tend Information An nua I Perce ntage Net Pension of C of A Pension Cost (C of A) Contributed ObliQation 2,456,749 100% 2,524,947 100% 1,958,234 100% 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 is as follows at June 30,2008: Startup Costs $ 1,861,076 Less accumulated amortization 802,621 $ 1,058,455 F. Prior Period Adjustment The prior period adjustment is to recognize a budget to GAAP difference that was not accounted for in the previous years. It relates to a transfer of $215,000 between the Community Development Block Grant Fund and the General Fund for cash and receivable outstanding as of June 30, 2007 relating to the City paying off obligations to the Grove Community Center. page 60 city of ash/and REQUIRED SUPPLEMENTARY INFORMATION comprehensive annual financial report page 63 I I -, 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 an other financing source, for GAAP it is purely a balance sheet transaction. comprehensive annual financial report page 65 CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND For the year ended June 30, 2008 Variance with Final Budget - Budget Amounts Positive Actual Original Final (Negative) Revenues: Taxes $ 10,243,372 $ 10,650,936 10,650,936 $ (407,564 ) Fees, licenses and permits 886,644 900,000 900,000 (13,356) Intergovernmental 662,102 558,000 558,000 104,102 Charges for Services 1 ,441 ,157 1,466,130 1,466,130 (24,973) Fines and Forfeitures 150,346 180,000 180,000 (29,654) Interest on Investments 113,937 75,000 75,000 38,937 Miscellaneous 91,203 1,100,000 1,290,000 (1,198,797) Total Revenues 13,588,761 14,930,066 15,120,066 (1,531,305) Expenditures: General Government: Administration 370,552 494,686 494,686 124,134 Administrative Services: Band 52,924 60,509 60,509 7,585 Social Services 105,534 121,000 121,000 15 ,466 Economic Development 527,519 527,519 527,519 Public Works: Cemetery 283,106 339,165 339,165 56,059 Community Development: Planning 1,200,310 2,411,548 2,411,548 1,211,238 Building 780,678 833,991 833,991 53,313 Miscellaneous 8,341 1,000 11,000 2,659 Total general government 3,328,964 4,789,418 4,799,418 1 ,470 ,454 Public Safety: Police 5,310,433 5,458,209 5,648,209 337,776 Municipal Court 430,347 427,360 437,360 7,013 Fire and Rescue 4,837,745 4,997,175 5,097,175 259,430 Total public safety 10,578,525 10,882,744 11,182,744 604,219 Contingency 400,000 280,000 280,000 Total Expenditures 1 3,907,489 16,072,162 16,262,162 2,354,673 Excess(Deficiency) of Revenues over (318,728) (1,142,096) (1,142,096) 823,368 Other financing sources (uses): Transfer In (Cemetery Fund) 33,180 25,000 25,000 8,180 Transfers out (500) (500) (500) Total other financing sources (uses) 32,680 24,500 24,500 8,180 Net Change in Fund Balance (286,048) (1,117,596) (1,117,596) 831 ,548 Fund Balance, July 1, 2007 2,367,714 2,245,116 2,245,116 122 ,598 Prior period adju stment 215,000 215,000 Fund Balance, June 30, 2008 $ 2,296,666 $ 1,127,520 $ 1,127,520 $ 1 ,169,146 comprehensive annual financial report page 67 ......,-,--- - CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL STREET FUND For the year ended June 30, 2008 Variance with Final Budget - Budget Amounts Postive Actual Original Final (Negative) Revenues: Taxes $ 188,030 $ 225,000 225,000 $ (36,970) Intergovernmental 942,746 2,000,000 2,000,000 (1,057,254) Charges for Services 1,692,436 1,810,000 1,810,000 (117,564) System Development Charges 167,486 200,000 200,000 (32,514) Assessments 67,195 100,000 100,000 (32,805) Interest on Investments 110,992 50,000 50,000 60,992 Miscellaneous 400 25,000 25,000 (24,600) Total Revenues 3,169,285 4,410,000 4,410,000 (1,240,715) Expenditures: Highways and streets: Operations and Maintenance 2,316,348 3,327,919 3,327,919 1,011,571 Storm Water 678,798 834,957 834,957 156,159 Transportation SDC's 202,916 188,800 238,000 35,084 Storm Water SDC's 152,980 172,500 211,500 58,520 Local Improvement Districts 24,993 685,998 685,998 661,005 New Debt 400,000 400,000 400,000 Total highways and streets 3,376,035 5,610,174 5,698,374 2,322,339 Contingency 89,000 3,376,035 5,699,174 5,698,374 2,322,339 Excess{Deficiency) of Revenues over (206,750) (1,289,174) (1,288,374) 1,081,624 Other fi nancing sources (uses): Bond Procee ds Transfer Out (200,000) (200,000) 200,000 Total other financing sources (uses) (200,000) (200,000) 200,000 Net Change in Fund Balance (206,750) (1,489,174) (1,488,374) 1,282,424 Fund Balance, July 1, 2007 2,377,220 2,712,415 2,712,415 (335,195) Fund Balance, June 30, 2008 $ 2,170,470 $ 1,223,241 $ 1,224,041 $ 947,229 page 68 city of ash/and SUPPLEMENTARY INFORMATION (Combining and Individual Fund Statements and Other Financial Schedules) comprehensive annual financial report page 69 CITY OF ASHLAND, OREGON COMBINING BALANCE SHEET ALL NON-MAJOR FUNDS Ju ne 30, 2008 Permanent Governmental Fund Types Fund Type Total Other Capital Debt Cemetery Governmental CDSG Airport Improvements Service Trust (Compi lation Fund Fund Fund Fund Fund Only) ASSETS Cash and cash equivalents $ 45,315 $ 73,975 $ 951,600 $ 771,948 $ 1 ,842,838 Receivables (net of allowance for uncollectibles) 13,324 490,173 363,986 867,483 Cash - restricted 1,240,543 1,240,543 Total assets $ 45,315 $ 87,299 $ 1,441,773 $ 1,604,529 $ 771,948 $ 3,950,864 LIABILITIES AND FUND BALANCES Accounts payable $ 610 $ 408 $ 78,215 $ 79,233 Deferred revenue 359,642 358,020 717,662 Due to other Funds Liabilities payable from restricted assets Total liabilities 610 408 437,857 358,020 796,895 Fund Balances: Reserved for: Reserved for systems development charges 96,632 96,632 Reserved for debt service 1,246,509 1,246,509 Reserved for perpetual care 771,948 771,948 Unreserved: Specia I revenue funds 86,891 86,891 Capital projects funds 44,705 907,284 951,989 Total equity and other credits 44,705 86,891 1 ,003,916 1,246,509 771,948 3,153,969 Total liabilities and fund balances $ 45,315 $ 87,299 $ 1,441,773 $ 1,604,529 $ 771,948 $ 3,950,864 comprehensive annual financial report page 71 CITY OF ASHLAND, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL NON-MAJOR FUNDS For the year ended June 30, 2008 Permanent Governmental Fund Types Fund Type Total Othe r Ca pital Debt Cemetery Governmental CDBG Ai rport Improvements Service Nonexpendable (Compilation Fund Fund Fund Fund Trust Fund Only) Revenues: Taxes $ 391,717 $ 381,757 $ 773,474 Intergovernmental 65,880 178,186 244,066 Charges for Services 108,513 984,166 1,130,511 21,530 2,244,720 System Development Charges 48,307 48,307 Interest on Investments 4,984 2,361 41,154 23,805 33,180 105,484 Miscellaneous 29,979 665,577 695,556 Total Revenues 70,864 289,060 1 ,495,323 2,201,650 54,710 4,111,607 Expenditures: General Government 38,192 222,436 845,149 1,105,777 Debt Service 35,072 1,816,977 1,852,049 Total Expenditures 38,192 257,508 845,149 1,816,977 2,957,826 Excess (Deficiency) of Revenues over Expenditures 32,672 31,552 650,174 384,673 54,710 1,153,781 Other fi nancing sources (uses): Interfund Loan Transfer in 302,573 500 303,073 Transfers out (302,573) (33,180) (335,753) (302,573) 302,573 (32,680) (32,680) Net Change in Fund Balance 32,672 31,552 347,601 687,246 22,030 1,121,101 Fund Balance, July 1, 2007 12,033 55,339 656,315 559,263 749,918 2,032,868 Fund Balance, June 30, 2008 $ 44,705 $ 86,891 $ 1,003,916 $ 1,246,509 $ 771,948 $ 3,153,969 Reconciliation to Net Assets Interfund Loans $ (80,000) $ 3,073,969 page 72 city of ash/and 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, 2008 Actual Budget Amounts Original Final Revenues: Intergovernmental Interest on Investments Miscellaneous Total Revenues $ $ 65,880 4,984 $ 213,500 213,500 70,864 213,500 213,500 Expenditures: General government: Personal Services Material and Services Total general government Contingency Total Expenditures Excess (Deficiency) of Revenues over Other financing sources (uses): Interfund Loans Total other financing sources (uses) Net Change in Fund Balance Fund Balance, July 1, 2007 14,201 23,991 38,192 23,600 203,700 227,300 23,600 203,700 227,300 38,192 32,672 227,300 (13,800) 227,300 ( 13,800) 32,672 12,033 44,705 ( 13,800) 13,800 ( 13,800) 13,800 Fund Balance, June 30, 2008 $ $ $ Variance with Final Budget - Positive (Negative) $ (147,620) 4,984 (142,636) 9,399 179,709 189,108 189,108 46,472 $ 46,472 (1 ,767) 44,705 comprehensive annual financial report page 73 CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AIRPORT FUND For the year ended June 30, 2008 Variance with Final Budget - Bu dget Amounts Pos tive Actual Original Final (Negative) Revenues: Intergovernmental $ 178,186 $ 240,000 $ 240,000 $ (61,814) Charges for services 108,513 105,000 105,000 3,513 Interest on investments 2,361 1,500 1,500 861 Miscellaneous 2,000 2,000 (2,000) Total Reven ues 289,060 348,500 348,500 (59,440) Expenditures: General government: Materials and services 222,436 339,637 339,637 117,201 Total general government 222,436 339,637 339,637 117,201 Debt Service 35,072 35,172 35,172 100 Contingency 5,000 5,000 5,000 Total Expenditu res 257,508 379,809 379,809 122,301 Excess(Deficiency) of Revenues over Expe nditures 31,552 (31,309) (31,309) 62,861 Net Change in Fund Balance 31,552 (31,309) (31,309) 62,861 Fund Balance, July 1, 2007 55,339 34,251 34,251 21,088 Fund Balance, June 30,2008 $ 86,891 $ 2,942 $ 2,942 $ 83,949 page 74 city of ash/and 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, 2008 Variance with Final Budget - Budget Amou nts Postive Actual Original Final (Negative) Revenues: Taxes $ 381,757 $ 357,475 $ 357,475 $ 24,282 Charges for services 1,130,511 1 ,181 ,000 1,181,000 (50,489) Special assessments 2,427 2,427 (2,427) Interest on investments 23,805 10,000 10,000 13,805 Miscellaneous 665,577 29,300 29,300 636,277 Total Revenues 2,201,650 1,580,202 1,580,202 621,448 Expenditures: Debt Service: Bancroft 200,000 200,000 200,000 Gerneral Obligation 1 ,413,159 1,413,325 1,413,325 166 Notes and Contracts 403,818 403,496 403,496 (322) Total Expenditures 1,816,977 2,016,821 2,016,821 199,844 Excess(Deficiency) of Revenues over Expenditures 384,673 (436,619) (436,619) 821,292 Other fi nancing sources (uses): Transfers in 302,573 502,573 502,573 200,000 Total other financing sources (uses) 302,573 502,573 502,573 200,000 Net Change in Fund Balance 687,246 65,954 65,954 621,292 Fund Balance, July 1, 2007 559,263 535,131 535,131 24,132 Fund Balance, June 30, 2008 $ 1,246,509 $ 601,085 $ 601,085 $ 645,424 comprehensive annual financial report page 75 -,- ~~ 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, 2008 Variance with Final Budget - Budget Amounts Postive Actual Original Final (Negative) Revenues: Taxes $ 391,717 $ 406,400 $ 406 ,400 $ (14,683) Charges for services 984,166 1,130,561 1,130,561 (146,395) System Devleopment 48,307 65,000 65,000 (16,693) Interest on investments 41,154 20,000 20,000 21,154 Miscellaneous 29,979 10,000 1 0 ,000 19,979 Total Reven ues 1,4 95,323 1,631,961 1,631,961 (136,638) Expenditures: General government: Personal Services 172,426 176,216 176,216 3,790 Material and Services 456,015 489,275 489,275 33,260 Capital Outlay 216,708 300,000 300,000 83,292 Total cost of Service 845,149 965,491 965,491 120,342 Contingency 50,000 50,000 Total Expenditures 845,149 1,015,491 1,015,491 120,342 Excess(Deficiency) of Revenues 650,174 616,470 616,470 (16,296) Other fi nancing sources (uses): Transfers out (302,573) (302,573) (302,573) Loan Proceeds (uses) (302,573) (302,573) (302,573) Net Change in Fund Balance 347,601 313,897 313,897 33,704 Fund Balance, July 1, 2007 656,315 493,325 493,325 162,990 Fund Balance, June 30, 2008 $ 1,003,916 $ 807,222 $ 807,222 $ 196,694 page 76 city of ash/and 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, 2008 Variance with Final Budget - Bu dget Amounts Positive Actual Original Final (Negative) Revenues: Charges for services $ 21,530 $ 20,000 $ 20,000 $ 1,530 Interest on investments 33,180 25,000 40,000 (6,820) Miscellaneous Total Reven ues 54,710 45,000 60,000 (5,290) Other fi nancing sources (uses): Transfers in 500 500 500 Transfers out (33,180) (25,000) (40,000) 6,820 Total other financing sources (uses) (32,680) (24,500) (39,500) 6,820 Net Change in Fund Balance 22,030 20,500 20,500 1,530 Fund Balance, July 1, 2007 749,918 753,953 753,953 (4,035) Fund Balance, June 30, 2008 $ 771,948 $ 774,453 $ 774,453 $ (2,505) comprehensive annual financial report page 77 CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL WATER FUND For the year ended June 30, 2008 Variance with Final Budget - Budget Amounts Postive Actual Original Final (Negative) Revenues: Taxes $ 1,267 $ $ $ 1,267 Intergovernmental 48,096 295,000 295,000 (246,904) Charges for Services 3,780,193 4,300,000 4,300,000 (519,807) System Developments Charges 340,835 450,000 450,000 (109,165) Interest on Investments 123,528 190,000 190,000 (66,472) Miscellaneous 27,663 10,000 10,000 17,663 Total Revenues 4,321,582 5,245,000 5,245,000 (923,418) Expenditures: Cost of Services: Forest Land Management 179,418 385,670 385,670 206,252 Public Works Water Supply 481,038 448,819 523,819 42,781 Public Works Water Treatment 1,480,146 1,137,338 2,106,338 626,192 Public Works Water Distribution 2,149,178 3,802,816 2,833,816 684,638 Public Works Reimbursement SDC's 58,761 100,000 41,239 Public Works Improvements SDC's 497,934 605,250 505,250 7,316 Public Works Debt SDC's 124,710 124,850 124,850 140 Ele ctric: Water Conservation 162,461 177,300 177,300 14,839 5,133,645 6,682,043 6,757,043 1,623,398 Debt Service 564,109 785,704 785,704 221,595 Contingency 144,000 69,000 69,000 Total Expenditures 5,697,754 7,611,747 7,611,747 1,913,993 Excess(Deficiency} of Revenues over (1,376,172) (2,366,747) (2,366,747) 990,575 Other financing sources (uses): Transfer In Loan Proceeds Total other financing sources (uses) Net Change in Fund Balance (1,376,172) (2,366,747) (2,366,747) 990,575 Fund Balance, July 1, 2007 3,241,590 5,171,075 5,171,075 (1,929,485) Fund Balance, June 30, 2008 $ 1,865,418 $ 2,804,328 $ 2,804,328 $ (938,910) Reconciliation to Net Assets: Capital Assets, Net $ 22,161,318 Accrued Interest (38,762) Compensated Absences (83,596) Deferred Charges 157,213 Interfund loan 80,000 GO Bonds Payable (680,000) Revenue Bonds Payable (3,980,000) $ 19,481,591 page 78 city of ash/and CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL WASTEWATER FUND For the year ended June 30, 2008 Variance with Final Budget- Budget Amounts Postive Actual Original Final (Negative) Revenues: Taxes $ 1 ,566,868 $ 1,625,600 $ 1,600,000 $ (33,132) Charges for Services 2,607,275 2,912,000 2,912,000 (304,725) System Developments Charges 127,224 215,000 215,000 (87,776) Interest on Investments 178,212 150,000 150,000 28,212 Miscellaneous 3,167 3,000 3,000 167 Total Reven ues 4,482,746 4,905,600 4,880,000 (397,254) Expenditures: Cost of Services: Public Works Wastewater Collection 2,066,762 2,479,706 2,479,706 412,944 Public Works Wastewater Treatment 1,462,078 1,926,453 1 ,926,453 464,375 Public Works Reimbursement SDC's 129,125 239,403 164,403 35,278 Public Works Improvements SDC's 133,750 121 ,423 196,423 62,673 Total cost of service 3,791,715 4,766,985 4,766,985 975,270 Debt Service 1,788,060 1,788,160 1,788,160 100 Contingency 140,000 140,000 140,000 Total Expenditures 5,579,775 6,695,145 6,695,145 1,115,370 Excess(Deficiency) of Revenues over (1,097,029) (1,789,545) (1,815,145) 718,116 Other Ii nancing sources (uses): Loan Proceeds 3,000,000 3,000,000 3,000,000 Total other financing sources (uses) 3,000,000 3,000,000 Net Change in Fund Balance (1,097,029) 1,210,455 1,184,855 (2,307,484) Fund Balance, July 1, 2007 4,862,001 4,328,857 4,328,857 533,144 Fund Balance, June 30, 2008 $ 3,764,972 $ 5,539,312 $ 5,513,712 $ (1,774,340) Reconciliation to Net Assets: Capital Assets, Net $ 40,140,048 Rounding 1 Accru ed Interest (105,365) Compensated Absences (32,327) Notes Payable (18,687,249) $ 25,080,080 comprehensive annual financial report page 79 CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL ELECTRIC FUND For the year ended June 30, 2008 Variance with Final Budget - Budget Amounts Positive Actual Original Final (Negative) Revenues: Intergovernmental $ 67,620 $ 50,000 $ 50,000 $ 17,620 Charges for Services 12,260,230 12,691,800 12,691,800 (431,570) Interest on Investments 55,827 75,000 75,000 (19,173) Miscellaneous 155,330 61,000 61,000 94,330 Total Revenues 12,539,007 12,877,800 12,877,800 (338,793) Expenditures: Cost of Services: Electric supply 6,009,164 6,102,504 6,102,504 93,340 Electric distribution 5,577,990 5,711,671 5,711,671 133,681 Electric transmission 886,638 903,600 903,600 16,962 Conservation 1,078,466 942,887 1,167,887 89,421 Total cost of service 13,552,258 13,660,662 13,885,662 333,404 Contingency 375,000 150,000 150,000 Total Expenditures 13,552,258 14,035,662 14,035,662 483,404 Excess Deficiency) of Revenues over Expenditures (1,013,251) (1,157,862) (1,157,862) 144,611 Other fi nancing sources (uses): Other financing sources 304,000 800,000 800,000 ( 496,000) Total other financing sources (uses) 304,000 800,000 800,000 (496,000) (709,251 ) (357,862) (357,862) Fund Balance, July 1, 2007 2,178,995 2,035,107 2,035,107 143,888 Fund Balance, June 30, 2008 $ 1,469,744 $ 1,677,245 $ 1,677,245 $ 143,888 Reconciliation to Net Assets: Capital Assets, Net $ 9,848,549 Compensated Absences (98,601 ) Deferred Reven ue 210,582 Revenue Bo nds Payable (304,000) $ 11,126,274 page 80 city of ash/and CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL TELECOMMUNICATIONS FUND For the year ended June 30, 2008 Variance with Final Budget- Budget Amounts Pos tive Actual Original Final (Negative) Revenues: Taxes $ 250 $ 30,000 $ 30,000 $ (29,750) Charges for Services 1,709,705 1,680,874 1,680,874 28,831 Interest on Investments 29,251 15,450 15,450 13,801 Miscellaneous 69,788 16,000 16,000 53,788 Total Revenues 1,808,994 1,742,324 1,742,324 66,670 Expenditures: Cost of Services: IT - Inte met 1,157,175 1,228,233 1,228,233 71,058 IT - High Speed Data 389,996 468,607 468,607 78,611 IT - Other 356,000 356,000 356,000 Total cost of service 1,903,171 2,052,840 2,052,840 149,669 Contingency 100,000 100,000 100,000 Total Expenditures 1,903,171 2,152,840 2,152,840 249,669 Excess(Deficiency) of Revenues over Expe nditures (94,177) (410,516) (410,516) 316,339 Net Change in Fund Balance (94,177) (410,516) (410,516) 316,339 Fund Balance, July 1, 2007 963,896 773,232 773,232 190,664 Fund Balance, June 30, 2008 $ 869,719 $ 362,716 $ 362,716 $ 507,003 Capital Assets, Net Compensated Absences Rounding $ 6,971,674 (28,062) (1 ) $ 7,813,330 comprehensive annual financial report page 81 ,--- -----------...--..---..-.--..........-..-.-.---.-...---....-..-- CITY OF ASHLAND, OREGON CONSOLIDATING BALANCE SHEET INTERNAL SERVICE FUNDS June 30, 2008 Central Insurance Services Services Equipment Fund Fund Fund Totals ASSETS Current assets: Cash and investments $ 629,599 $ 1,463,692 $ 1,309,220 $ 3,402,511 Interest and accounts receivable, net 107 2,837 288 3,232 Notes receivable 28,087 28,087 Inventories 1,716 58,268 59,984 Total current assets 631,422 1,494,616 1 ,367,776 3,493,814 Capital assets 294,620 11,404,726 11,699,346 Accumulated depreciation (243,389) (7,926,743) (8,170,132) Capital assets, net 51,231 3,477,983 3,529,214 Total assets $ 682,653 $ 1,494,616 $ 4,845,759 $ 7,023,028 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable $ 99,659 $ 13,401 $ 27,058 $ 140,118 Accrued salaries, vacation and payroll taxes 318,578 3,104 21,373 343,055 Other liabilities Accrued claims and adjustments 545,072 545,072 Total current liabilities 418,237 561,577 48,431 1,028,245 Net assets: Invested in capital assets, net of related debt 51,231 3,477,983 3,529,214 Unreserved 213,185 933,039 1,319,345 2,465,569 Total fund equity: 264,416 933,039 4,797,328 5,994,783 Total liabilities and net assets $ 682,653 $ 1,494,616 $ 4,845,759 $ 7,023,028 page 82 city of ash/and CITY OF ASHLAND, OREGON CONSOLIDATING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS For the year ended June 30, 2008 Central Insurance Se rvice Services Equipment Fund Fund Fund Totals Operating revenues: Service Charges and fees $ 5,021,189 $ 648,360 $ 1,254,014 $ 6,923,563 Miscellaneous 103,116 9,682 149,297 262,095 Total Reven ues 5,124,305 658,042 1,403,311 7,185,658 Operating expenses: Cost of Service 5,629,127 756,606 769,827 7,155,560 Depreciation 14,627 930,569 945,196 Total operating expenses 5,643,754 756,606 1 ,700,396 8,100,756 Operating income (loss) (519,449) (98,563) (297,085) (915,097) Nonoperating income (expense): Taxes 12,366 12,366 Interest income 44,756 57,152 72,125 174,033 Gai n (loss) on disposal of assets Total nonoperating income (expense) 57,122 57,152 72,125 186,399 Change in Net Assets ( 462,327) (41,411) (224,960) (728,698) Net Assets, July 1, 2007 726,743 974,450 5,022,288 6,723,481 Net Assets, July 1, 2008 $ 264,416 $ 933,039 $ 4,797,328 $ 5,994,783 comprehensive annual financial report page 83 1'- CITY OF ASHLAND, OREGON COMBINING INTERNAL SERVICE FUND STATEMENT OF CASH FLOWS For the year ended June 30,2008 Central Insurance Equipment Fund Services Services Fund Total Cash flows from operating activities: Receipts from customers and users $ 5,124,587 $ 682,584 $ 1,403,284 $ 7,210,455 Payments to suppliers (1,851,493) (745,507) (624,556) (3,221,556) Payments to employees (3,797,587) (273,030) (4,070,617) Net cash from operating activities (524,493) (62,923) 505,698 (81,718) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (1,126,340) (1,126,340) Net cash from capital and related financing activitie (1,126,340) (1,126,340) Cash flows from investing activities: Interest from investments and Other income 57,122 57,152 72,125 186,399 Net increase (decrease) in cash and investments (467,371) (5,771) (548,517) (1,021,659) Cash and investments, beginning of year 1,096,970 1,469,463 1,857,737 4,424,170 Cash and investments, end of year $ 629,599 $ 1,463,692 $ 1,309,220 $ 3,402,511 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ (519,449) $ (98,563) $ (297,085) $ (915,097) Depreciation and amortization 14,627 930,569 945,196 Change in assets and liabilities: (Increase) decrease in: Receivables 282 24,541 (27) 24,796 Inventories 598 (24,409) (23,811) Increase (decrease) in: Accounts payable and accrued liabilities (20,551 ) (42,235) (104,021) (166,807) Other liabilities 53,334 671 54,005 Net cash from operating activities $ (524,493) $ (62,923) $ 505,698 $ (81,718) page 84 city of ash/and CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL CENTRAL SERVICES FUND For the year ended June 30, 2008 Variance with Final Budget - Budget Amounts Postive Actual Original Final (Negative) Revenues: Taxes $ 12,366 $ 17,000 $ 17,000 $ (4,634) Intergovernmental Revenues 2,835 2,835 Charges for Services 5,021,189 5,461,708 5,461,708 (440,519) Interest on Investments 44,756 20,000 20,000 24,756 Miscellaneous 100,281 85,000 85,000 15,281 Total Revenues 5,181,427 5,583,708 5,586,543 (405,116) Expenditures: Cost of Services: Administration Department 1,302,421 1 ,502,580 1,614,615 312,194 Administrative Services Department 1,509,145 1,575,530 1,575,530 66,385 IT - Computer Services Division 1,153,554 1, 165,588 1,206,388 52,834 CITY Recorder Division 281,257 298,569 298,569 17,312 Public Works - Administration and Engineering 1,355,070 1,387,186 1,387,186 32,116 Contingency 150,000 Total Expenditures 5,601,447 6,079,453 6,082,288 480,841 Net Change in Fund Balance (420,020) (495,745) (495,745) (885,957) Fund Balance, July 1, 2007 788,106 578,732 578,732 209,374 Fund Balance, June 30, 2008 $ 368,086 $ 82,987 $ 82,987 $ (676,583) Reconciliation to Net Assets Accrued Compensated Absences (154,901) Capital Assets, Net 51,231 $ 264,416 comprehensive annual financial report page 85 CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL INSURANCE SERVICES FUND For the year ended June 30, 2008 Variance with Final Budget - Budget Amounts Postive Actual Original Final (Negative) Revenues: Charges for Services $ 648,360 $ 617,485 $ 617,485 $ 30,875 Interest on Investments 57,152 50,000 50,000 7,152 Miscellaneous 9,682 9,682 Total Revenues 715,194 667,485 667,485 47,709 Expenditures: Cost of Services: Personal Services 81,133 85,000 85,000 3,867 Materials and Services 620,793 700,000 700,000 79,207 Total cost of Services 701,926 785,000 785,000 83,074 Contingency 100,000 100,000 100,000 Total Expenditures 701,926 885,000 885,000 183,074 Other financing sources (uses): Interfund Loan Total other financing sources (uses) Net Change in Fund Balance 13,269 (217,515) (217,515) (135,365) Fund Balance, July 1, 2007 1,125,430 1,120,790 1,120,790 4,640 Fund Balance, June 30,2008 $ 1,138,699 $ 903,275 $ 903,275 $ (130,725) Reconciliation to Net Assets Accrued claims and judgments (205,660) $ 933,039 page 86 city of ash/and CITY OF ASHLAND, OREGON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL EQUIPMENT FUND For the year ended June 30, 2008 Variance with Final Budget - Budget Amounts Postive Actual Original Final (Negative ) Revenues: Charges for Services $ 1,254,014 $ 1,323,000 $ 1 ,323,000 $ (68,986) Interest on Investments 72,125 44,000 44,000 28,125 Miscellaneous 149,297 50,000 50,000 99,297 Total Revenues 1,475,436 1,417,000 1,417,000 58,436 Expenditures: Cost of Services: Personal Services 266,336 268,701 273,701 7,365 Materials and Services 487,001 503,222 503,222 16,221 Total cost of service 753,337 771,923 776,923 23,586 Capital Gutla y 1,143,279 1,438,000 1 ,438,000 294,721 Contingency 43,000 38,000 38,000 Total Expenditures 1,896,616 2,252,923 2,252,923 356,307 Net Change in Fund Balance (421,180) (835,923) (835,923) (297,871) Fund Balance, July 1, 2007 1,750,852 1,344,280 1 ,344,280 406,572 Fund Balance, June 30,2008 $ 1,329,672 $ 508,357 $ 508,357 $ 108,701 Reconciliation to Net Assets Accrued Compensated Absences (10,328) Capital Assets, Net 3,477,984 $ 4,797,328 comprehensive annual financial report page 87 CITY OF ASHLAND, OREGON CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS BY SOURCE June 30, 2008 Governmental funds capital assets: Land Buildings and improvements Improvements other than buildings Machinery and equipment Construction in progress $ 9,730,550 19,244,728 41,805,261 2,310,355 650,362 Total capital assets $ 73,741,256 Investments in governmental funds capital assets by source: General and Capital Projects Funds Special Revenue Funds Component Unit Leased to Other Agencies $ 16,005,054 36,969,374 7,152,481 13,614,347 $ 73,741,256 Total investments in governmental funds capital assets 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. page 88 city of ash/and CITY OF ASHLAND, OREGON SCHEDULE OF ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS BY FUNCTION AND ACTIVITY June 30,2008 Improve ments Machinery Other Than and Constructio n Function and Activity Land Build ings Buildings Equipment in Progress Total General Government: Comm unity Development $ 985,235 $ 1,120,947 $ 378,138 $ 2,484,320 Public Buildings 460,200 1,021 ,882 49,429 124,461 1,655,972 Leased to Ot her Agenci es 253,000 8,744,018 3,957,949 659,380 13,614,347 Other - Unclassified 181 ,505 2,035,844 790,298 183,248 3,100,895 Total General government 1,879,940 12,922,691 4,797,676 1,345,227 20,945,534 Public Safety: Police 80,000 614,700 472,497 1,167,197 Fire 998,400 3,268,416 300,000 5,797 4,572,613 Total Public Safety 1,078,400 3,883,116 300,000 478,294 5,739,810 Highway and Streets: Public Thoroughfares 452,235 630,075 34,979,874 256,828 650,362 36,969,374 Total Highways and Streets 452,235 630,075 34,979,874 256,828 650,362 36,969,374 Airports 176,566 1,029,780 1,727,711 2,934,057 Culture and Recreation 6,143,409 779,066 230,006 7,152,481 Total Governmental Funds Capital Assets $ 9,730,550 $ 19,244,728 $ 41,805,261 $ 2,310,355 $ 650,362 $ 73,741,256 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 page 89 CITY OF ASHLAND, OREGON SCHEDULE OF BOND PRINCIPAL AND BOND INTEREST TRANSACTIONS For the year ended June 30, 2008 Bond Principal Transactions Original Outstanding Issue June 30, 2007 Issued General Obliaation Bonds Water Bonds, issued December 1, 1977, $ 560,000 $ 50,000 $ interest at 5.00% to 7.00% Flood and Refunding Bonds, issued December 1, 2,800,000 880,000 1997, interest at 3.65% to 6.00% Flood and Fire Station Bonds, issued June 1,2000 3,310,000 435,000 interest variable Ashland Fiber Network Bonds, issued August 11, 15,500,000 15,500,000 2004, interest at 3.70% to 6.02% Refunding Bonds, issued December 1, 2005 2,560,000 2,560,000 interest variable Revenue Bonds Water, Series 2003, issued June 1,2003, 5,625,000 4,315,000 interest at 2.00% to 4.00% Electric, Series 2008, issued June 20,2008, 304,000 304,000 interest at 2.00% to 4.00% $30,659,000 $ 23,740,000 $ 304,000 page 90 city of ash/and CITY OF ASHLAND, OREGON SCHEDULE OF BOND PRINCIPAL AND BOND INTEREST TRANSACTIONS For the year ended June 30,2008 (continued) Bond Principal Transactions Outstanding Matured Paid June 30, 2008 Interest Transactions Outstanding June 30, 2007 Matured Paid Outstanding June 30, 2008 $ 25,000 $ 25,000 $ 25,000 $ 4,263 $ $ 4,263 $ 225,000 225,000 655,000 34,708 34,708 140,000 140,000 295,000 22,990 22,990 195,000 195,000 15,305,000 860,849 860,849 2,560,000 112,725 112,725 335,000 335,000 3,980,000 127,406 127,406 304,000 $ 920,000 $ 920,000 $ 23,124,000 $ 4,263 $1,158,678 $1,162,941 $ comprehensive annual financial report page 91 r-- CITY OF ASHLAND, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS COLLECTED AND UNCOLLECTED FOR THE CITY AND COMPONENT UNIT For the year ended June 30,2008 Add (Deduct) Discounts Ded uct Taxes Add Levy Interest Interest and Taxes Uncollected Extend ed by Cancellations Tax Uncollected July 1,2007 Assessor Adjustments Collections June 30, 2008 2007-08 $ $ 10,852,570 $ 162,977 $ 10,273,879 $ 415,714 2006-07 428,935 86,971 217,000 124,964 2005-06 96,628 89 42,195 54,344 2004 -0 5 43,652 2,267 25,829 15,556 2003-04 19,217 1,412 10,677 7,128 Prior years 20,876 (1,004) 3,074 18,806 $ 609,308 $ 10,852,570 $ 252,712 $ 10,572,653 $ 636,512 Taxes Collections to U ncollecte d Ju ne 30, 2008 June 30,2008 Taxes receivable and tax collections classified by fund: Primary government: General Fund $ 3,764,295 $ 228,062 Debt Service Fund 381,757 22,295 Enterprise Fund: Water Fund Component unit: 1,267 Parks and Recreation: Parks and Recreation Fund 3,872,201 232,701 Ashland Youth Activities Serial Levy Fund 2,553,133 153,454 $ 10,572,653 $ 636,512 page 92 city of ash/and CITY OF ASHLAND, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND BALANCES OF TAXES UNCOLLECTED FOR THE CITY AND COMPONENT UNIT For the year ended June 30, 2008 Reconciliation of tax collections by fund to tax revenues on the generally accepted accounting T ax Revenues Collections Other Taxes GAAP Basis Primary government: General Fund $ 3,764,295 $ 6,479,077 $ 10,243,372 Special Revenue Funds: Street Fund 188,030 188,030 Debt Service Funds: Debt Service Fund 381,757 381,757 Capital Projects Fu nd: Capital Improvement Fund 391,717 391,717 Enterprise Funds: Water Fund 1,267 1,267 Wastewater Fund 1,566,868 1,566,868 Component unit: Parks and Recreation: Parks and Recreation Fund 3,872,201 3,872,201 Special Revenue Fund: Ashland Youth Activities Serial Levy Fund 2,553,133 2,553,133 $ 10,572,653 $ 8,625,692 $ 19,198,345 comprehensive annual financial report page 93 1-.--'-- STATISTICAL SECTION Total Reporting Entity (Unaudited) comprehensive annual financial report page 95 CITY OF ASHLAND, OREGON STATISTICAL SECTION (U nau dited) 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 financial performance by placing it in historical perspective. 98-111 Revenue Capacity These tables contain information that may assist the reader is assessing the viability of the City's revenue sources. 112-121 Debt Capacity These tables present information that may assist the reader in analyzing the affordabilityof the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 122-129 Economic & Demographic Information These tables offer economic and demographic indicators that are commonly used for financial analysis and that can help the reader understand the City's present and ongoing financial status. 130-131 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 and the activities it performs. 132 -13 9 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 on Iy six years. comprehensive annual financial report page 97 I I~---- CITY OF ASHLAND, OREGON STATEMENT OF NET ASSETS Governmental Activities For the Fiscal Year Ended June 30, page 98 city of ash/and CITY OF ASHLAND, OREGON STATEMENT OF NET ASSETS Governmental Activities For the Fiscal Year Ended June 30, (continued) 2004 2003 $ 6,312,364 $ 8,961,587 2,430,662 2,669,101 16,602 1,728 1,222,273 413,078 260,813 8,261,273 8,343,858 29,933,056 7,420,827 9,345,294 3,610,916 15,720,372 9,951,054 9,789,517 12,327,224 (28,220,545) $ 55,223,946 $ 53,547,108 $ 2,734,135 $ 2,798,840 94,404 335,303 783,485 750,750 6,357,569 6,530,911 9,969,593 10,415,804 37,948,847 34,601,570 1,197,249 1,594,538 433,278 (47,412) 684,476 679,646 4,990,503 6,302,962 $ 45,254,353 $ 43,131,304 comprehensive annual financial report page 99 ----,--,----- CITY OF ASHLAND, OREGON STATEMENT OF NET ASSETS Business - type Activities For the Fiscal Year Ended June 30, 2008 2007 2006 2005 ASSETS Assets: Cash and cash equivalents $ 6,437,889 $ 9,836,733 $ 12,951,933 $ 15,066,503 Receivables (net of allowance for uncollectibles) 2,190,239 2,105,403 2,203,826 2,057,466 Inventories 881,530 806,047 799,588 851,200 Deferred cha rges 1,215,668 1,340,389 1,721,312 1,819,860 I nternal Sa lances 1,304,641 1,587,111 1,319,579 1,378,719 Restricted assets: Capital Assets: Land 1,880,638 1,880,638 1,945,107 1,945,107 Buildings and Improvements 21,782,187 21,782,187 21,782,188 23,113,448 Machinery and equipment 823,581 673,607 636,103 675,297 Infrastructure 84,636,278 81,141,248 80,305,280 79,057,892 Construction in progress 3,981,724 5,156,412 2,998,341 4,4 72,229 Accumulated Depreciation (35,041,272) (31,502,402) (28,803,335) (26,616,727) Total assets $ 90,093,103 $ 94,807,373 $ 97,859,922 $ 103,820,994 Liabi lities: Accounts payable and other current liabilities $ 1,571,810 $ 1,554,049 $ 1,678,775 $ 2,343,307 Accrued interest payable 144,127 153,639 587,720 819,171 Uneamed revenue Noncurrent Iiab~ities: Due within one year 1,595,081 1,379,209 1,475,373 1 ,437,257 Due in more than one year 22,056,168 23,497,674 40,366,883 42,177,256 Total liabilities 25,367,186 26,584,571 44,108,751 46,776,991 Net Assets Invested in capital assets, net of related debt 54,411,887 54,264,807 42,661,428 39,032,733 Restricted for: System development 3,838,867 4,315,088 4,251,713 4,636,560 Debt service 1,751,369 1,913,648 1,913,648 Unrestricted 4,723,794 9,642,907 4,924,382 11,461 ,062 Total net assets $ 64,725,917 $ 68,222,802 $ 53,751,171 $ 57,044,003 page 100 city of ashland CITY OF ASHLAND, OREGON STATEMENT OF NET ASSETS Business - type Activities For the Fiscal Year Ended June 30, (continued) 2004 2003 $ 9,286,593 $ 7,961,325 1,883,966 1,893,686 821,407 828,978 1,921 ,81 0 2,082,204 (1,222,273) 1 ,971,745 1,945,107 23,157,904 22,595,341 2,833,165 722,977 79,121,637 60,513,768 4,563,158 3,428,686 (25,236,582) $ 99,102,530 $ 101,972,072 $ 1,960,591 $ 1,486,328 307,538 307,634 4,000 323,308 2,388,750 2,300,805 34,841,659 36,927,296 39,502,538 41,345,371 44,754,393 49,967,778 4,020,207 3,441,297 1,281,341 1,913,648 9,544,051 5,303,978 $ 59,599,992 $ 60,626,701 comprehensive annual financial report page 101 -----r-r--- CITY OF ASHLAND, OREGON CHANGES IN NET ASSETS Governmental Activities For the Fiscal Year Ended June 30, 2008 2007 2006 2005 Program Revenues: General Government Charges for Services $ 5,786,031 $ 5,058,193 $ 4,110,436 $ 4,453,046 Operating Grants and Contributions 2,122 35,144 141,500 358,309 Capital Grants and Contributions 178,186 17,377 299,171 948,845 Capital System Development Charges 48,308 67,014 105,193 154,200 Public Safety Charges for Services 1,524,229 1 ,600,538 1,556,909 1,769,625 Operating Grants and Contributions 98,302 182,281 71,245 Capital Grants and Contributions 312,000 53,443 Highways and Streets Charges for Services 1,807,939 1,662,360 1 ,659,421 1,593,663 Operating Grants and Contributions 1,243 Capital Grants and Contributions 366,549 202,982 463,695 Capital System Development Charges 167,486 269,338 388,654 509,175 9,612,603 9,570,794 8,464,266 10,376,489 Program Expenses: General Government 4,876,071 4,287,280 2,818,129 5,202,781 Public Safety 11,555,693 10,082,938 7,903,054 9,235,540 Highways and Streets 4,000,048 2,583,641 2,419,380 4,221,022 Interest on long-term debt 1,178,388 1,139,346 637,146 311,527 21 ,610,200 18,093,205 13,777,709 18,970,870 Net (Expense) Revenue: General Government 1,138,576 890,448 1,838,171 557,419 Public Safety (9,933,162) (7,988,119) (6,346,145) (7,341,227) Highways and Streets (2,024,623) (285,394) (168,323) (2,162,421 ) Interest on long-term debt (1 ,178,388) (1,139,346) (637,146) (311,527) (11,997,597) (8,522,411) (5,313,443) (9,257,756) General Revenues: Property Taxes 4,170,062 3,557,262 2,970,566 2,658,995 Utility Users Tax 3,945,382 2,345,323 2,323,390 2,277,178 Users Taxes 1,899,320 1,952,810 1,784,302 1,753,477 State Subventions - unrestricted 247,357 1,486,776 1,817,175 1,360,724 Unrestricted Interest Earnings 444,557 406,964 256,648 146,041 Capital Assets Transfers (15,896,208) 1,425,346 Miscellaneous 779,133 1 ,085,266 617,542 288,060 Gain (loss) on Disposal of Assets Transfers: Total General Revenues and Transfers 11,485,811 (5,061,807) 11,194,969 8,484,475 Change in Net Assets (511,786) (13,584,218) 5,881,526 (773,281 ) Net Assets - Beginning 37,149,923 50,734,018 45,144,447 45,254,353 Recognition of Prior Infrastructure Net Assets - Ending $ 36,638,137 $ 37,149,800 $ 51 ,025,973 $ 44,481 ,072 page 102 city of ashland 2004 2003 $ 4,269,353 $ 4,667,720 811,075 132,171 3,859 156,141 107,687 130,486 1,693,838 1,599,037 101,877 34,536 79,460 1,491,256 1,146,124 1,075,598 2,849,793 376,951 430,806 10,010,954 11,146,814 2,982,532 6,543,127 8,454,075 7,914,876 4,637,272 3,985,835 370,491 339,082 16,444,370 18,782,920 2,101,755 (1,456,609) (6,578,900) (6,281,303 ) (1,693,467) 440,888 (370,491) (339,082) (6,541,103) (7,636,106) 2,626,369 2,206,505 2,102,550 1,929,092 1,808,047 1,567,079 1,277,933 1,128,521 62,543 115,947 590,682 280,289 (868,437) (200,000) 7,599,687 7,027,433 1,058,584 (608,673 ) 43,131,304 43,739,977 956,778 $ 45,146,666 $ 43,131,304 comprehensive annual financial report page 103 CITY OF ASHLAND, OREGON CHANGES IN NET ASSETS Governmental Activities For the Fiscal Year Ended June 30, (continued) I I CITY OF ASHLAND, OREGON CHANGES IN NET ASSETS Business - type Activities For the Fiscal Year Ended June 30, CITY OF ASHLAND, OREGON CHANGES IN NET ASSETS Business - type Activities For the Fiscal Year Ended June 30, (continued) 2004 2003 $ 3,678,974 $ 3,075,622 129,721 110,147 574,540 528,553 2,368,237 2,218,249 432,273 408,843 11,962,925 10,220,661 7,165 137,483 2,403,436 1,969,079 21,557,271 18,668,637 4,177,640 5,331,263 4,615,409 5,665,728 11,638,094 11,395,422 3,706,854 3,662,002 24,137,997 26,054,415 205,595 (1,616,941 ) (1,814,899) (3,038,636) 331,996 (1,037,278) (1,303,418) (1,692,923) (2,580,726) (7,385,778) 179,302 176,523 1,346,863 1,280,190 166,529 300,418 84 7,330 499,947 (986,004) 200,000 1,554,020 2,457,078 (1,026,706) (4,928,700) 60,626,698 65,555,401 $ 59,599,992 $ 60,626,701 comprehensive annual financial report page 105 I I CITY OF ASHLAND, OREGON FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Years For the Fiscal Year Ended June 30, 2008 2007 2006 2005 2004 General Fund Unreserved, reported in: General Fund $ 2,296,666 $ 2,367,714 $ 2,326,936 $ 2,308,388 $ 1,755,143 Total General Fund 2,296,666 2,367,714 2,326,936 2,308,388 1,755,143 Street Fund Reserved for: Reserved for system development charges 2,049,977 1,761,561 1,597,642 1,472,090 1,197,249 Unreserved, reported in: Special revenue Funds 120,493 615,659 (133,598) (556,062) (881,403 ) Total Street Fund 2,170,470 2,377,220 1,464,044 916,028 315,846 All Other Governmental Funds Reserved for: Reserved for system development charges 96,632 168,896 65,675 65,675 1 ,197,249 Reserved for debt service 1,246,509 559,263 459,095 423,842 433,278 Reserved for perpetual care 771 ,948 749,918 719,429 702,629 684,476 Unreserved, reported in: General Fund 1,755,143 Special revenue Funds 6,891 (24,661) 130,126 2,942 (663,026) Capital projects funds 951,989 714,329 586,843 635,387 429,873 Total All Other Governmental Funds 3,073,969 2,167,745 1,961,168 1,830,475 3,836,993 Total Governmental Funds $ 7,541,105 $ 6,912,679 $ 5,752,148 $ 5,054,891 $ 5,907,982 Fund Balance Comparison Governmental Funds Last Ten Years $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- o All Other Gowmmental Funds .Street Fund ///. /~ % 1'/ ~. ::-; y/:: %% ::: ://- // ~ ;:-:-;.::: // .::- ~. ~" ~I'), ~n:, ~ ~~ ~<o ~ ~ ~ ~ ~ ~ ~ ~ m General Fund R>~ "q) ~~ ~ ~co ~ page 106 city of ashland CITY OF ASHLAND, OREGON FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Years (continued) For the Fiscal Year Ended June 30, 2003 2002 2001 2000 1999 $ 1,715,220 $ 1,865,212 $ 1,962,295 $ 1,888,103 $ 1,480,891 1,715,220 1,865,212 1,962,295 1,888,103 1,480,891 1,594,538 1,348,177 1,079,784 654,291 300,324 934,212 1,436,880 1,080,273 521,787 (81,660) 2,528,750 2,785,057 2,160,057 1 ,176,078 218,664 1,348,177 1,182,176 1,037,219 454,534 282,293 136,978 103,883 225,841 374,915 679,646 (298) 1,423,536 954,654 547,823 (48,887) 67,583 2,833,606 8,599,456 3,217,748 384,796 1,029,224 5,742,297 10,840,169 5,028,631 1,165,358 $ 5,273,194 $ 10,392,566 $ 14,962,521 $ 8,092,812 $ 2,864,913 comprehensive annual financial report page 107 CITY OF ASHLAND, OREGON CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Years For the Fiscal Year Ended June 30, 2008 2007 2006 2005 2004 Revenues: Taxes $ 11,204,876 $ 10,620,715 $ 9,454,799 $ 9,057,868 $ 8,714,013 Fees, licenses and permits 886,644 847,665 1,106,317 1,489,379 1,156,285 Intergovernmental 1,848,914 2,606,832 2,168,873 3,252,504 3,349,802 Special assessments 67,195 108,864 360,860 222,408 170,860 Charges for services 5,594,106 4,564,898 3,817,938 4,165,663 3,717,342 Fines and forfeitures 150,346 169,558 137,460 133,170 120,749 Interest on investments 330,413 310,478 197,960 112,531 51,967 Miscellaneous 787,159 719,478 554,076 62,546 563,988 Total revenues 20,869,653 19,948,488 17,798,283 18,496,069 17,845,006 Expenditures: General government 4,114,305 3,423,269 3,081,984 3,317,996 3,610,326 Public safety 10,578,525 10,227,177 9,152,421 8,630,755 8,468,294 Highways and streets 2,341,178 2,245,609 2,191,178 2,079,150 1,923,050 Capital Outlay 1,355,293 1,359,308 1,889,998 2,403,697 4,736,857 Debt service 1,852,049 1,622,412 820,218 846,573 917,680 Principal 725,753 533,630 523,769 497,493 537,325 Interest 1,126,296 1,088,782 296,449 349,079 380,354 Ratio of Debt service to noncapital expenditures 10.87% 10.21% 5.69% 6.03% 6.55% Total expenditures 20,241,350 18,877,775 17,135,799 17,278,171 19,656,207 Excess (deficiency) of revenues over expenditures 628,303 1,070,713 662,484 1,217,898 (1,811,201 ) Other financing sources (uses): Proceeds from debt issuance 2,761,180 Interfund Loans 89,818 375,000 Transfers in 336,253 936,934 347,780 154,360 318,393 Transfers out (336,253) (936,934 ) (347,780) (154,360) (318,393) Total other financing sources (uses) 89,818 2,761,180 375,000 Net Change in Fund Balance $ 628,303 $ 1,160,531 $ 3,423,664 $ 1,217,898 $ (1,436,201 ) page 108 city of ashland CITY OF ASHLAND, OREGON CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Years (continued) For the Fiscal Year Ended June 30, 2003 2002 2001 2000 1999 $ 7,906,257 $ 7,558,510 $ 6,934,972 $ 6,262,184 $ 6,212,932 1,472,877 1,256,617 865,019 780,708 599,202 4,190,546 2,183,896 6,704,367 1,658,050 2,142,086 214,606 193,999 164,263 259,002 327,011 3,665,166 3,613,534 3,336,396 3,095,292 1,597,564 107,607 188,006 121,919 163,949 163,872 115,947 310,385 808,711 175,560 331,626 191,096 439,863 155,895 106,732 116,240 17,864,102 15,744,810 19,091,542 12,501,477 11,490,533 2,769,315 2,620,298 2,462,368 2,214,215 2,497,598 7,914,876 7,513,892 6,823,528 6,374,244 5,622,387 2,036,222 2,852,552 1,924,020 1,413,591 1,654,203 8,793,175 7,896,316 1,261,320 1,110,158 2,324,391 779,527 716,069 802,089 611,393 650,449 440,445 442,513 485,064 419,282 403,278 339,083 273,557 317,025 192,111 247,171 6.13% 5.51% 7.16% 6.11% 6.65% 22,293,115 21,599,127 13,273,325 11,723,601 12,749,028 (4,429,013) (5,854,317) 5,818,217 777,876 (1,258,495) 1,621,875 900,000 25,012 3,140,000 600,000 361,108 725,771 341 ,480 392,929 1,442,666 (561,108) (966,408) (298,980) (367,500) (719,166) 2,021,875 659,363 67,512 3,165,429 723,500 $ (2,407,138) $ (5,194,954 ) $ 5,885,729 $ 3,943,305 $ (534,995) comprehensive annual financial report page 109 I I CITY OF ASHLAND, OREGON FUND BALANCE COMPARISON Last Ten Years 2008 2007 2006 2005 2004 Fund Balances Adopted Adopted Adopted Adopted Adopted City Component General Fund $ 1,127,520 $ 1,047,023 $ 1 ,051,983 $ 936,568 $ 1,315,669 Community Development Block Grant Fund Street Fund 1,223,241 6,308,766 733,073 1,976,046 1,065,590 Airport Fund 2,942 12,382 37,660 42,315 4,000 Capital Improvements Fund 807,222 1 ,680,528 3,609,193 389,839 429,000 Debt Service Fund 601,085 148,902 569,205 695,484 264,900 Water Fund 2,804,328 5,401,307 2,158,888 3,524,870 2,784,125 Wastewater Fund 5,539,312 3,035,439 3,899,968 4,463,795 1,726,251 Electric Fund 1 ,677,245 1,185,892 1 ,405,027 1,812,094 763,763 Telecommunications Fund 362,716 217,611 70,187 954,723 269,910 Central Services Fund 82,987 92,793 10,000 113,758 145,824 Insurance Services Fu nd 908,275 492,028 417,936 471,538 156,500 Equipment Fund 508,357 618,799 856,499 965,561 908,740 Cemetery Trust Fund 774,453 735,212 699,876 681 ,408 684,500 Total City Component 16,419,683 20,976,682 15,519,495 17,027,999 10,518,772 Parks Component Parks and Recreation Fund 877,245 667,250 993,667 965,822 815,000 Youth Activities Levy Fund 216,893 125,306 2,166 2,000 Parks Capital Improvements Fund 26,926 44,866 112,569 169,965 234,000 Total Parks Component 1,121,064 712,116 1,231,542 1,137,953 1,051,000 Total Budget $ 17,540,747 $ 21 ,688,798 $ 16,751,037 $ 18,165,952 $ 11,569,772 For the Fiscal Year Ended June 30, 2008 2007 2006 2005 2004 Fund Balances Actual Actual Actual Actual Actual City Component General Fund $ 2,296,666 $ 2,367,714 $ 2,326,936 $ 2,093,388 $ 1,755,145 Commun ity Development Block Grant Fund 44,705 12,033 4,599 (8,492) 33,018 Street Fund 2,170,470 2,377,220 1 ,464,044 1,186,028 315,846 Airport Fund 86,891 55,339 54,874 122,942 218,377 Capital Improvements Fund 1,003,916 656,315 803,171 924,554 396,855 Debt Service Fund 1,246,509 559,263 459,095 423,842 433,278 Water Fund 1,865,418 3,241,590 6,179,246 6,458,230 5,002,748 Wastewater Fund 3,764,972 4,862,001 5,301,598 5,664,182 1 ,541 ,125 Electric Fund 1,469,744 2,178,995 2,116,269 2,527,430 1,539,766 Telecommunications Fund 869,719 963,896 518,687 898,750 62,635 Central Services Fund 368,086 726,743 439,010 185,137 569,013 Insurance Services Fu nd 1,138,699 974,450 1 ,060,790 1,036,331 934,499 Equipment Fund 1,329,672 5,022,288 1,510,170 1,489,055 1,224,311 Cemetery Trust Fund 771 ,948 749,918 719,429 702,629 684,476 Total City Component 18,427,415 24,747,765 22,957,918 23,704,006 14,711,092 Parks Component Parks and Recreation Fund 1,201,443 1,180,912 1 ,507,367 1,621,679 1,558,332 Youth Activities Levy Fund 160,591 72,671 35,374 103,733 122,588 Parks Capital Improvements Fund 263,343 195,390 165,326 207,375 300,331 Total Parks Component 1,625,377 1 ,448,973 1,708,067 1,932,787 1,981,251 Total Budget $ 20,052,792 $ 26,196,738 $ 24,665,985 $ 25,636,793 $ 16,692,343 page 110 city of ashland CITY OF ASHLAND, OREGON FUND BALANCE COMPARISON Last Ten Years (continued) 2003 2002 2001 2000 1999 Adopted Adopted Adopted Adopted Adopted $ 1,238,814 $ 1,079,348 $ 1,152,000 $ 679,000 $ 549,000 1,764,790 1,377,392 804,322 378,000 100,000 6,140 8,000 23,000 22,000 15,000 1,150,300 1,782,000 3,611,000 2,588,000 2,255,000 540,000 238,000 293,000 427,000 399,000 4,478,680 1,448,010 3,032,000 1,804,000 1,619,000 754,800 2,004,896 3,036,000 2,380,000 7,110,000 443,533 989,946 108,000 1,580,000 1,340,000 97,036 38,130 142,675 119,283 91,500 110,500 230,000 242,000 725,000 452,640 121,778 72,000 786,000 814,000 653,000 89,000 685,000 680,000 664,000 11,813,908 9,406,283 13,046,322 11,566,000 15,590,000 782,294 805,300 735,715 577,000 180,000 9,000 9,000 34,000 185,000 148,000 195,000 564,000 976,294 962,300 735,71 5 772,000 778,000 $ 12,790,202 $ 10,368,583 $ 13,782,037 $ 12,338,000 $ 16,368,000 2003 2002 2001 2000 1999 Actual Actual Actual Actual Actual $ 1,715,220 $ 1,865,212 $ 1,962,295 $ 1,888,103 $ 1,480,895 (32,433) (35,904) (142,463) 3,744 3 2,528,750 2,785,057 2,160,057 1,176,078 218,663 32,135 22,560 16,844 22,292 32,771 67,583 2,833,606 8,701,848 3,600,676 539,004 282,293 136,978 103,883 225,841 625,738 4,662,028 1 ,985,298 3,905,152 4,708,031 3,243,350 2,356,054 9,190,945 9,198,221 10,454,701 8,358,755 1,497,827 1,069,861 1,249,04 7 1,560,301 1,500,976 388,018 1,982,175 119,745 1,902,118 947,953 823,405 436,624 96,609 68, 154 145,978 204 ,263 299,415 502,000 630,294 1,121,598 783,340 526,894 253,019 370,944 679,646 72 ,823 669,517 663.140 660,698 16,392,650 23,719,619 29,207,079 27,056,653 17,730,245 1,403,171 1,168,934 1,023,774 1,196,511 1,966,643 36,403 36,341 125,706 125,191 133,769 367,733 280,337 151,955 295,000 536,494 1,807,307 1,485,612 1,301,435 1,616,702 2,636,906 $ 18,199,957 $ 25,205,231 $ 30,508,514 $ 28,673,355 $ 20,367,151 comprehensive annual financial report page 111 I I CITY OF ASHLAND, OREGON ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY for the last ten fiscal years - Unaudited Taxable ratio Fiscal Year (True Cash Ended Property Value to Ju ne 30, Real Property Mobile Home Personal 1 Util ities Total Tax Rate Assessed) 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 % 2004 1,446,150,336 5,400,552 37,453,000 22,831,681 1,511,835,569 5.34 61.7% 2003 1,360,297,002 5,147,040 34,209,260 24,241,450 1,423,894,752 5.36 61.1% 2002 1,272,205,820 4,983,960 32,044,090 23,806,860 1,333,040,730 5.38 68.6% 2001 1,183,527,490 4,760,560 30,004,310 21,823,850 1,240,116,210 5.46 83.0% 2000 1,106,322,240 4,241,270 26,183,680 20,989,320 1,157,736,510 4.81 94.0% 1999 1,039,559,010 4,439,960 25,093,370 19,043,890 1,088,136,230 4.92 87.0% All property is evaluated once every six years as required by State Statute 1 Includes Non-Profit Housing Source: County Assessor tax roll property values Real Property Value and Taxable Ratio Last Ten Years $2,000,000,000 $1,800,000,000 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% $- PJ~ "Q) ~ ~ ~ ~ -~ k ~ ~ ~ ~ ~ ~. ~ ~ ~ ~ ~ ~ ~ ~ ~ 0.0% ~ ~ ~co ~ ~---------------- c:J Total Property -+- Taxable Ratio l ---------------,-~---~ page 112 city of ashland CITY OF ASHLAND, OREGON PROPERTY TAX RATES- DIRECT AND OVERLAPPING GOVERNMENTS (Per $1,000 of Assessed Valuation) for the last ten fiscal years - Unaudited Net Jackson Net Rscal Jackson Rogue Genera I County School Year Cou nty Valley Government Education School Support Ended City of Vector Jackson Transit Tax Service Dist rict RCC Tax June 30, Ashland Control County 1 District Rate District 5 Rate Total 2008 $5.73 $ 0.04 $ 2.18 $ 0.17 $ 8.12 $ 0.34 $ 5.94 $0.62 $ 6.90 $15.02 2007 5.56 0.04 2.52 0.17 8.30 0.34 5.41 0.62 6.37 14.67 2006 5.25 0.04 2.55 0.17 8.01 0.34 5.31 0.62 6.28 14.28 2005 5.26 0.04 2.75 0.17 8.22 0.34 5.44 0.50 6.28 14.50 2004 5.34 0.04 2.79 0.17 8.34 0.34 5.49 0.50 6.33 14.67 2003 5.36 0.04 2.70 0.17 8.27 0.34 5.53 0.50 6.37 14.64 2002 5.38 0.04 2.66 0.18 8.26 0.86 5.83 6.69 14.95 2001 5.46 0.04 2.56 0.18 8.24 1.84 5.03 6.87 15.11 2000 4.81 0.04 2.25 0.18 7.28 1.95 5.03 6.98 14.26 1999 4.92 0.04 2.01 0.18 7.15 0.35 6.08 6.43 13.58 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 2.00 14.00 12.00 10.00 8.00 6.00 4.00 p'>Q,) ~ ~~ ~ ~" ~ ~~<), '"C ~ ~ ~* ~ ~ ~~~ '"C ~~ '"C ~~ - - I City of Ashland -Total comprehensive annual financial report page 113 I I Fiscal Year Ended June 30, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 CITY OF ASHLAND, OREGON PROPERTY VALUE AND NEW CONSTRUCTION HISTORY for the last ten fiscal years - Unaudited Property Value 1 Commercial Construction Number of Units Value Resi dential Constructio n Number of Units Value $ 1,875,310,040 1,766,496,299 1,674,614,942 1,595,270,690 1,511,835,569 1 ,423,894,752 1,333,040,730 1,240,116,210 1,157,736,510 1,088,136,230 23 $ 16,269,379 26 8,086,124 19 20,988,810 42 18,426,846 30 10,137,442 17 9,077,761 17 13,702,661 9 12,715,512 15 7,081,675 17 22,097,963 82 $ 8,258,031 98 15,270,781 160 24,336,944 188 35,576,749 154 35,764,484 152 25,170,310 106 11,464,493 150 19,907,603 233 31,940,531 169 30,183,930 1 Property value is assessed valuation Source: City of Ashland, Comm unity Development Department Jackson County Assessor page 114 city of ashland $10,000,000 $40,000,000 $30,000,000 $20,000,000 Commercial and Residential Construction Last Ten Years $- ~OJOJ ~<:::I ~ ~" ~ f;::,~ ~ ~":> ~ r&& f;::,~ ~ r&~ r&~ ~'b ~ . Commercial Construction o Residential Construction CITY OF ASHLAND, OREGON FOOD AND BEVERAGE TAX REVENUES BY FUND (Amounts Expressed in Thousands) for the last ten fiscal years- Unaudited Fiscal Year Ended Capital June 30, Improvement 3 Wastewater 2 T otal1 Cumulative 2008 $ 392 $ 1,567 1,959 22,554 2007 395 1,594 1,989 20,595 2006 370 1 ,481 1,851 18,606 2005 364 1 ,454 1,818 16,755 2004 337 1,347 1,684 14,937 2003 320 1,280 1,600 13,253 2002 317 1,268 1,585 11 ,653 2001 307 1,219 1,526 10,068 2000 284 1,151 1 ,435 8,542 1999 262 1,047 1,309 7,107 1 Tax enacted July 1, 1993 2 Derived from wastewater enterprise operations 3 Dedicated to acquisition of Open Space Parkland Food and Beverage Tax Revenues by Fund Last Ten Years $1,800 $1,600 $1,400 II) $1,200 'C m $1,000 ::::I ~ $800 t- oE $600 $400 $200 $- ~Oj ~ ,,~ ,,~, ,,~~ ,,~ ~ ~ ~ ~ 11III Capitalll1l>rovement ~ ~ ~IO ~ ~ ~ o Wasiawater ~ ~ ~~ ~ comprehensive annual financial report page 115 CITY OF ASHLAND, OREGON PRINCIPAL PROPERTY TAXPAYERS Current Year and Ten Years Ago Percentage 2008 of Total Assessed Assessed Taxpayers Type of Business Valuation Valuation Qwest Corporation Utility $ 10,510,100 0.56% Windmill Inns of America, Inc. Motels 10,375,160 0.55% Ronald L. Deluca Housing 8,983,710 0.48% Avista Corp. Utility 7,342,900 0.39% North Mountain Land Company Housing 6,302,400 0.34% Pacific Financial, Inc. Financial 5,694,300 0.39% Michael D. & Beverly Rydbom Retail 4,728,500 0.30% Skylark Assisted Living Assisted Care 4,647,770 0.25% Bard's Inn Limited Motels 4,449,330 0.25% Summit Investment Retail 4,407,650 0.24% Plaza Hospitality Motels 3,896,970 0.25% All other $ 1,803,971,250 96.20% Total $ 1,875,310,040 100.00% Percentage 1999 of Total Assessed Assessed Taxpayers Type of Business Valuation Valuation US West Communications Inc. Utility $ 10,027,300 0.97% AHllnc. Motels 9,011,480 0.87% Washington Water Power Co. Utility 5,770,230 0.56% Michael D. & Beverly Rydbom Retail 4,451,060 0.43% Lloyd Haines Construction 4,407,450 0.43% Pacific Financial, Inc. Financial 4,324,860 0.42% Skylark Assisted Living Assisted Care 3,573,850 0.35% Brodeur/Brodeur Inc. Motels 3,450,260 0.33% Warren Family Partnership Construction 3,410,240 0.33% Summit Investment Retail 3,223,030 0.31% All other $ 984,033,890 95.01% Total $ 1,035,683,650 100.00% Source: Jackson County Assessor page 116 city of ashland 2008 Principal Property Tax Payers Retail 13% Financial 8% Assisted Care 7% Housing 21% Utility 25% Motels 26% 1999 Principal Property Tax Payers Construction 15% Financial 8% Retail 15% comprehensive annual financial report page 117 CITY OF ASHLAND, OREGON GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE (Amounts Expressed in Thousands) for the last ten fiscal 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 1 Taxes Tax Tax 2 Tax Total 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 2004 7,970 842 2,103 1,178 1,309 337 155 13,894 2003 7,426 914 1,929 997 1,255 320 153 12,994 2002 7,010 870 1,770 1,060 1,168 317 157 12,352 2001 6,414 833 1,648 887 1,039 307 141 11 ,269 2000 5,182 781 1,594 783 930 292 148 9,710 1999 5,130 769 1,651 881 840 262 140 9,673 1 Derived from city-owned electric utility operations 2 Tax enacted July 1, 1993 General Governmental Tax Revenues by Source $4,500 $4,000 $3,500 $3,000 en "0 ~ $2,500 :::J o ~ $2,000 .E $1,500 $1,000 $500 $0 - . - - - - - Parks Property Tax ~ Electric Utility and Utility Users Tax ----.- City Property Tax - Youth Activity Le"Y ~ Transient Occupancy and Food and Be~rage Tax ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - - -.- - - Other Taxes page 118 city of ashland CITY OF ASHLAND, OREGON PROPERTY TAX LEVIES AND COLLECTIONS for the last ten fiscal years - Unaudited Percent of Percent of Fiscal Year Current Percent Delinquent Total Tax Outstanding Delinquent Ended Total Tax Tax of Levy Tax Total Tax Collections Delinquent Taxes to June 30, Levy 1 Collections 3 Collected Collections 2.3 Collections to Tax Levy Taxes T ax Levy 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% 2004 8,103,092 7,618,841 94.0% 351,635 7,970,476 98.4% 661,833 8.2% 2003 7,643,588 7,100,832 92.9% 325,084 7,425,916 97.2% 717,103 9.4% 2002 7,078,000 6,611,284 93.4% 398,332 7,009,616 99.0% 690,652 9.8% 2001 6,735,000 6,304,073 93.6% 264,836 6,568,909 97.5% 613,710 9.1% 2000 5,576,000 5,109,088 91.6% 367,430 5,476,518 98.2% 542,712 9.7% 1999 5,359,000 4,701,836 87.7% 535,791 5,237,627 97.7% 487,762 9.1% 1 Includes levy within the tax base, levy for bonded indebtedness, miscellaneous assessment payments in lieu of tax and tax levy shared offsets 2 Delinquent taxes collected represent accumulative amounts for the specific fiscal year 3 Includes adjustments, rounding and discounts Propery T ax Levies and Collections $2,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $- P.lOj ~ ~ ~ ~" ,,~"v "r$? ~ ~ ~ II Total Tax Levy ,,~ ~ ~<o ~ ~ ~ [] Total Tax Collection r::::,~ C'I) ~ ~ comprehensive annual financial report page 119 1- CITY OF ASHLAND, OREGON ELECTRIC UTILITY USAGE IN KILOWATT HOURS (kwh) for the last ten fiscal years - Unaudited 2008 2007 2006 Electric: Commercial 59,730,031 59,796,009 58,939,938 58,199,994 57,257,258 Governmental 18,328,996 16,771,812 17,684,660 17,522,640 16,826,746 Municipal 6,231,719 5,911,482 5,798,328 6,015,412 6,181,644 Residential 95,853,685 91,324,747 90,977,982 89,045,820 86,225,218 Electric Usage Total 180,144,431 173,804,050 173,400,908 170,783,866 166,490,866 Total Electric Revenue $ 11,638,234 $ 10,118,284 $ 9,978,512 $ 9,779,099 $ 9,022,608 Average Consumption Rate per kwh $ 0.065 $ 0.058 $ 0.058 $ 0.057 $ 0.054 SPA Surcharge Revenue $ 1,016,152 $ 1,123,490 $ 1,133,645 $ 1,266,655 $ 1,329,577 Average Surcharge per Consumed kwh $ 0.006 $ 0.006 $ 0.007 $ 0.007 $ 0.008 2005 2004 Electric Utility Average Rate History per kwh $0.07 $0.06 $0.05 $0.04 $0.03 $0.02 $0.01 $- 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 [----- -- - -----.--------------.---- _._--------_._--~-- ..___AlA9rage Consumption Rate per kwh -.-,AlA9rage Surcharge per Consumed kwh. ----.----..------.-_._____n..____....________...___ _____ ___'_ _,._~_.__ 1 Council implemented the surcharge due to increasing costs and changes in the wholesale power industry in FY 2002 2008 2007 2006 2005 2004 Demand: Commercial 159,430 164,228 160,133 156,388 156,476 Gove rnm ental/Municipal 65,931 69,856 68,828 67,529 65,457 Demand Usage Total 225,361 234,084 228,961 223,917 221,933 Total Demand Revenue $ 429,220 $ 490,039 $ 463,244 $ 453,221 $ 422,209 Average Demand Rate per kwh $ 1.905 $ 2.093 $ 2.023 $ 2.024 $ 1.902 The cost of supplying electric service depends not only upon the amount of energy (kwh) provided, but also upon the rate (kwh demand) at which it is consumed, since this factor is ultimately reflected in the amount of distributing capactty which must be kept available. Note: The revenue shown above is only for the categories listed. These categories represent approximately 90% of the total charges for services which ca n be seen on page 104. page 120 city of ashland CITY OF ASHLAND, OREGON ELECTRIC UTILITY USAGE IN KILOWATT HOURS (kwh) for the last ten fiscal years - Unaudited (continued) 2003 2002 2001 2000 1999 56,017,453 53,220,997 52,714,544 51,407,937 51,867,428 16,009,661 16,620,796 20,273,391 17,388,770 15,637,206 5,785,074 4,957,496 2,807,439 3,957,069 3,794,375 85,158,420 82,490,010 86,856,040 83,216,352 88,819,268 162,970,608 157,289,299 162,651,414 155,970,128 160,118,277 $ 8,236,862 $ 7,570,069 $ 7,074,783 $ 6,794,532 $ 6,953,048 $ 0.051 $ 0.048 $ 0.043 $ 0.044 $ 0.043 $ 994,166 $ 610,887 NA NA NA $ 0.006 $ 0.004 NA NA NA Average Demand Rate per kwh $2.500 $0.500 $2.000 $1.500 $1.000 $- ~O:,O:, r::,<S> "C s:,.... ~ rf'~ rf'~n, rf'*' r#''':. s:,<i:> ~ ~ ~ s:,'b ~ -+-Average Derrand Rail per kwh 2003 2002 2001 2000 1999 155,538 146,098 148,608 147,439 149,218 62,436 61,760 63,126 58,607 53,353 217,974 207,858 211,734 206,046 202,571 $ 384,340 $ 349,766 $ 325,045 $ 314,276 $ 310,204 $ 1.763 $ 1.683 $ 1.535 $ 1.525 $ 1.531 comprehensive annual financial report page 121 .-- -------------..... -------"._..,.._.~..- CITY OF ASHLAND, OREGON RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA for the last ten fiscal years - Unaudited Ratio of Debt Net Net Fiscal Servi ce Enterprise Debt General Bonded Net Year Gross Fund Fund Payable from Obligation Debt to Bonded Ended Percenta ge Assessed Bonded Monies Monies Enterprise Bonded Assessed Debt per June 30, Population 1 Change Va lue 2 Debt 3 Available Ava i1able Revenues 4 Debt Value Capita 2008 21,800 1.73% $1,875,310,040 $44,138,466 $1 ,246,509 $1,751,369 $38,652,249 $18,840,000 1.00% 864.22 2007 21,430 2.63% 1 ,766,496,299 46,090,591 479,262 40,456,883 19,425,000 1.10% 906.44 2006 20,880 1.41% 1,674,614,942 49,105,540 459,095 1,913,648 41,842,256 19,770,000 1.18% 946.84 2005 20,590 0.78% 1,595,270,690 48,595,783 423,842 1,913,648 43,614,513 20,045,000 1.26% 973.05 2004 20,430 1.49% 1,511,835,569 43,746,882 433,278 1,281,341 36,866,762 4,875,000 0.32% 239.11 2003 20,130 1.82% 1,423,894,752 42,804,005 282,293 1,913,648 38,884,073 5,280,000 0.37% 262.30 2002 19,770 0.82% 1,333,040,730 41,503,298 136,978 2,830,609 32,700,711 5,835,000 0.44% 295.14 2001 19,610 0.62% 1,240,116,210 34,976,385 132,019 694,697 27,799,669 6,350,000 0.51% 323.81 2000 19,490 1.40% 1,157,736,510 31,454,293 225,841 584,621 23,553,831 7,090,000 0.61% 363.78 1999 19,220 3.56% 1,088,136,230 14,715,508 522,083 333,888 12,484,537 1,375,000 0.13% 71.54 Source: 1 Center for Population Research and Census, Portland State University 2 County Assessor Tax Roll Property Value Records 3 City Financial Records - includes all long-term general obligation debt, including general obligation special assessments, general obligation bonds and general obligation warrants from City of Ashland financial records 4 Includes general obligation debt paid from Hospital Enterprise Fund operations, Utility Services Revenue Fund operations and special assessment payments from benefited property owners Net Bonded Debt Per Capita Last Ten Years 1,000.00 900.00 800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00 !?l ~crs ~~ ~ ~" ~ r:::,~C'), ~ ~ ~ r:::,~ rc ~ ~ ~co ~ r:::,~ ~ ~ ~ page 122 city of ashland CITY OF ASHLAND, OREGON RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES for the last ten fiscal years - Unaudited Ratio of Total Debt Service Fiscal Year Total General to Ge neral Ended Debt Governmental Governmental June 30, Principal Interest Service 1 Expend itures Expenditures 2008 $ 220,000 $ 24,750 $ 244,750 $ 20,241 ,350 1.2% 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% 2004 185,000 196,353 381,353 19,656,207 1.9% 2003 170,000 199,068 369,068 22,293,115 1.7% 2002 280,000 188,809 468,809 13,724,000 3.4% 2001 210,000 232,044 442,044 12,021,000 3.7% 2000 215,000 96,081 311,081 10,626,000 2.9% 1999 145,000 144,515 289,515 10,427,000 2.8% 1 Includes General, Special Revenue Funds, and Debt Service Funds Ratio of Debt Service to General Governmental Expenditures Last Ten Years 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% ~~ ~~ ~" rc ~ ~~ c-o 5S:> ~ ~* c-o ~ ~ ~~ rc ~ ~ ~ ~ comprehensive annual financial report page 123 T-- ----_._--~-----..__..._._._._-_."._.,--,--_..__..._-,.- CITY OF ASHLAND, OREGON PLEDGED REVENUE COVERAGE WATER FUND for the last ten fiscal years - Unaudited Fiscal Year F utu re Rate Net Revenues Debt Service Requirements 4 Ended Gross Operating Stabilization Available for June 30, Revenues Expenses Offset 3 Debt Service Principal Interest Total Coverage 2008 $4,181,852 $ 3, 166, 159 1,015,693 $335,000 $127,406 $ 462 ,406 2.20 2007 4,429,216 3,348,682 1,080,534 325,000 134,006 459,006 2.35 2006 4,299,753 2,878,596 1 ,421,157 320,000 140,456 460,456 3.09 2005 4,182,066 1 1,718,464 2 2,463,602 320,000 146,856 466,856 5.58 2004 3,960,509 1 2,765,557 2 1,194,952 345,000 127,347 472,347 2.53 2003 3,605,602 2,529,243 100,000 976,359 365,487 391,227 756,714 1.42 2002 3,634,789 2,020,392 600,000 1,014,397 150,000 179,888 329,888 3.07 2001 3,464,218 2,252,410 600,000 611,808 140,000 187,502 327,502 1.87 2000 3,241,760 2,358,054 883,706 135,000 194,518 329,518 2.68 1999 2,794,002 1,868,660 925,342 125,000 200,955 325,955 2.84 1998 2,477,079 1,621,087 855,992 120,000 206,837 326,837 2.62 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 page 124 city of ashland CITY OF ASHLAND, OREGON RATIOS OF OUTSTANDING DEBT BY TYPE Last Five Years Notes and Contracts Governmental Activities Fiscal Year General Percent of Ended Obligation Assessed Promissory OECDD Per June 30, Bonds Value Notes Loans Capita 1 2008 $ 18,160,000 0.97% $ 740,079 $ 1,587,138 939.78 2007 18,575,000 1.05% 888,158 1,754,932 990.11 2006 1,155,000 0.07% 1,064,610 1,920,692 198.29 2005 1,795,000 0.11% 1,233,611 2,079,804 248.10 2004 2,885,000 0.19% 8,709,957 2,232,048 676.80 2003 3,420,000 0.24% 9,263,423 2,249,447 741.82 Business - type Activities Fiscal Year General Percent of Ended Obligation Assessed Revenue Bonds DEQ Per June 30, Bonds Value and Notes Loan Capita 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 18,625,000 1.11% 4,640,000 20,702,256 2,105.71 2005 18,265,000 1.14% 4,960,000 21,659,513 2,179.92 2004 2,050,817 0.14% 5,280,000 22,584,762 1,464.30 2003 1,860,000 0.13% 5,625,000 23,4 79,073 1,538.21 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 OECDD - Oregon Economic and Community Development Department DEQ - Oregon Department of Environmental Quality comprehensive annual financial report page 125 ---------.- -- "--'-_._-_._.__._._...._....._,-.-....._~....". CITY OF ASHLAND, OREGON LEGAL DEBT MARGIN Last Ten Years For the Fiscal Year Ended June 30, 2008 2007 2006 2005 2004 True Cash Val ue $4,000,418,984 $3,788,568,503 $3,266,109,773 $2,827,489,200 $2,450,551,643 Legal Debt Margin Debt Limit (3% of true cash value) $ 120,012,570 $ 113,657,055 $ 97,983,293 $ 84,824,676 $ 73,516,549 Net Bonded Debt: Gross bonded debt 18,840,000 19,425,000 19,780,000 20,045,000 4,875,000 Less amounts exempted: Water (25,000) (50,000) (60,000) (85,000) (100,000) Special assessment Refunding Water Refunding (655,000 ) (800,000) (940,000) (1,075,000) (1,205,000) Total debt applicable to margin 18,160,000 18,575,000 18,780,000 18,885,000 3,570,000 LEGAl DEBT MARGIN $ 101 ,852,570 $ 95,082,055 $ 79,203,293 $ 65,939,676 $ 69,946,549 Legal Debt Margin Compared to Debt Limit Last Ten Years $140,000,000 $120,000,000 $80,000,000 I:J Debt Limit (3% of true cash val ue) $100,000,000 $60,000,000 $40,000,000 . . Legal Debt Margin $20,000,000 $- pjOJ "Q5 ~~ ~ ~" ~ ~'l.- ~ ~~ ~ ~X> ~ ~ ~ ~co ~ page 126 city of ashland CITY OF ASHLAND, OREGON LEGAL DEBT MARGIN Last Ten Years (continued) For the Fiscal Year Ended June 30, 2003 2002 2001 2000 1999 $2,327,582,133 $1,943,471,450 $1,240,116,210 $1,157,736,510 $1,089,529,060 $ 69,827,464 $ 58,304,144 $ 37,203,486 $ 34,732,095 $ 32,685,872 5,280,000 6,135,000 6,530,000 7,090,000 4,255,000 (125,000) (145,000) (165,000) (185,000) (205,000) (55,000) (180,000) (255,000 ) (335,000) (75,000) (325,000) (550,000) (765,000) (980,000) (1,325,000) (1,440,000) (1,555,000) (1 ,670,000) (1,695,000) 3,755,000 4,170,000 4,080,000 4,215,000 1,040,000 $ 66,072,464 $ 54,134,144 $ 33,123,486 $ 30,517,095 $ 31,645,872 comprehensive annual financial report page 127 ------~"---_.-._,_._----,--,....-._--_..,--,.__._.- CITY OF ASHLAND, OREGON COMPUTATION OF LEGAL DEBT MARGIN June 30, 2008 - Unaudited True cash value $ 4,000,418,984 3% of the true cash value 0.03 $ 120,012,570 NET BONDED DEBT: Gross bonded debt 18,840,000 Less amounts exempted: Water (25,000) Water Refunding (655,000) Total debt applicable to margin 18,160,000 LEGAL DEBT MARGIN $ 101,852,570 ORS 287.004 provides a debt limit of 3% of the true cash value of all taxable property within the Municipality's boundaries. According to ORS 287.004, the 30/0 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 page 128 city of ash/and CITY OF ASHLAND, OREGON COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT GENERAL OBLIGATION BONDS June 30, 2008 - Unaudited Net General Obligation Percentage Amount Bonded Debt Applicable Applicable Jurisdiction Outstanding to City to City Direct: City of Ashland $ 18,840,000 100.000/0 $ 18,840,000 Overlapp ing Jackson County 38,561,021 13.540/0 5,221,162 School District #5 44,775,000 80.410/0 36,003,578 Rogue Community College 43,615,000 9.940/0 4,335,331 $ 126,951 ,021 $ 45,560,071 $ 145,791 ,021 $ 64,400,071 Source: State of Oregon, Office of Treasurer City of Ashland Bonded Debt Compared to Overall Debt Applicable to the City City of Ashland comprehensive annual financial report page 129 I . ------------- CITY OF ASHLAND, OREGON PRINCIPAL EMPLOYERS Current Year and Ten Years Ago 2008 Employer Perce ntage of Total City Employees Employment Southern Oregon University Ashland Community Hospital Oregon Shakespeare Festival Ashland Public Schools City of Ashland* Butler Ford Pathway Enterprises Ashland Food Cooperative Professional Tool Mfg. LLC Prestige Care (Linda Vista) 850 9.44% 410 4.56% 398 4.42% 350 3.89% 229 2.54% 160 1.78% 140 1.56% 1 30 1.44 % 1 00 1. 11 % 75 0.83% Total 2,842 31.58% Estimated Total City Employment 9,000 1999 Employer Percentage of Total City Employees Employment Southern Oregon State College Public Schools Oregon Shakespeare Festival Ashland Community Hospital Southern OR Training & Habilitation City of Ash land* Darex Corporation Butler Ford Linda Vista Care Parson's Pine Products 740 12.33% 382 6.37% 430 7.17% 264 4.40% 246 4.10% 197 3.28% 135 2.25% 100 1.67% 85 1.42% 71 1.18% Total 2,650 44.17% Estimated Total City Employment 6,000 Source: Ashland Chamber of Commerce Oregon Employment Department * Excludes Ashland Parks Commission page 130 city of ash/and CITY OF ASHLAND, OREGON DEMOGRAPHIC STATISTICS for the last ten fiscal years - Unaudited Fiscal Year Per Total Unemployment Ended Percentage Capita Personal School Rate June 30, Population 1 ChanQe Income 2 Income 4 Enrollment 3 Jackson Co. 2 2008 21 ,800 1.73% N/A N/A 3,000 6.7% 2007 21 ,430 2.63% N/A N/A 3,000 5.6% 2006 20,880 1.41% 31,785 6,255,659 2,777 5.7% 2005 20,590 0.78% 30,239 5,860,640 2,920 6.2% 2004 20,430 1.49% 28,531 5,502,474 3,138 7.3% 2003 20,130 1.82% 26,477 5,214,284 3,321 6.8% 2002 19,770 0.82% 25,772 4,939,787 3,393 6.6% 2001 19,610 0.62% 24,917 4,780,747 3,411 5.9% 2000 19,490 1.40% 23,914 4,530,926 3,258 5.7% 1999 19,220 3.56% 22,649 4,286,867 3,309 6.4% 1 Center for Population and Research and Census, and Portland State University 2 Bureau of Econom ic Analysis 3 Ashland School District 4 Bureau of Economic Analysis, in thousands of dollars Population Growth Last Ten Years 22,000 18,000 21,000 20,000 19,000 17,000 ~ ~ ~~ c-o $::)' ~ ,,~'), sS:> ~ ~ ~* ~ ~~ c-o ~~ ~ ~ ~ ~ ~ comprehensive annual financial report page 131 -------.---_.. - CITY OF ASHLAND, OREGON SCHEDULE OF MAJOR INSURANCE IN FORCE June 30, 2008 Company Coverage Policy Period General Aggregate/Each Premium Occurrence City County Insurance Services General Liability 07/01/2007-07/01/2008 $ 15,000,000/ $ 5,000,000 $ 157,583 Commercial General Liability 07/01/2007-07/01/2008 $ 15,000,000/ $ 5,000,000 Public Officials Liability 07/01/2007-07/01/2008 $ 15,000,000/ $ 5,000,000 Employment Practices 07/01/2007-07/01/2008 $ 15,000,000/ $ 5,000,000 Occurrence 07/01/2007-07/01/2008 $ 15,000,000/ $ 5,000,000 Automobile Liability 29,750 Scheduled Autos 07/01/2007-07/01/2008 None / $ 5,000,000 Hired Autos 07/01/2007-07/01/2008 None / $ 5,000,000 Non-Owned Autos 07/01/2007-07/01/2008 None / $ 5,000,000 Auto Physical Damage 6,719 Scheduled Autos 07/01/2007-07/01/2008 Per Filed Value H ired Autos 07/01/2007-07/01/2008 Per Filed Value Non-Owned Autos 07/01/2007-07/01/2008 Per Filed Value Property 77,183 Buildings 07/01/2007-07/01/2008 Per Filed Value Mobile Equipment 07/01/2007-07/01/2008 Per Filed Value Replacement Cost of Boiler and Machinery 07/01/2007-07/01/2008 Machinery & Equipment not 5,865 covered elsewhere Excess Crime 07/01/2007-07/01/2008 Per Loss! $250,000 445 Northwest Insurance Group, Inc. Airport Liability 07/01/2007-07/01/2008 $4,000,0001$4,000,000 5,189 The Hartford Flood 10/23/2007-10/23/2008 $ 54,200 766 Safety National Casualty Corp. Workers' Compensation 07/01/2007-07/01/2008 6,000 Self-Insured Bond Excess Workers' 07/01/2007-07/01/2008 $ 1,000,000/ $ 1,000,000 Compensation 25,479 page 132 city of ash/and CITY OF ASHLAND, OREGON CITY EMPLOYEE BY FUNCTION/PROGRAM For the Fiscal Year Ended June 30, Function/Program 2008 2007 2006 2005 2004 Administration 3.06 3.00 3.00 3.00 3.00 Human Resources 3.00 3.00 2.00 2.00 2.00 Legal 3.50 3.50 3.50 3.50 3.50 Information Technology 7.60 7.60 7.60 6.45 4.95 Finance 15.75 15.50 17.50 16.50 15.80 Municipal Court 4.15 4.15 4.15 3.75 3.00 City Recorder/Treasurer 2.00 2.00 2.00 2.00 2.00 Police 39.30 40.30 39.80 39.80 37.30 Fire 35.40 35.40 35.00 34.00 32.00 Streets 10.20 10.20 10.20 9.70 9.45 Water 16.30 16.30 14.80 14.80 13.70 Wastewater 11.80 11.80 11.80 11.80 12.55 Public Works Administration 8.00 8.00 8.00 8.00 6.75 Engineering 6.00 6.00 6.00 6.00 5.75 Facilities Maintenance/Cemetery 4.00 4.00 4.00 4.00 4.00 Fleet Maintenance 3.50 3.50 3.50 3.50 3.60 Planning 11.00 11.50 10.50 8.65 8.45 Building 5.40 6.50 6.50 6.55 6.55 Electric 18.10 18.10 18.10 17.15 14.40 Telecommunication 7.55 7.55 8.05 9.65 8.65 Conservation 3.00 3.00 3.00 2.80 3.00 Senior Program * * * 1.75 1.75 Subtotal 218.61 220.90 219.00 215.35 202.15 Parks 50.55 48.45 48.45 45.90 37.40 Total 269.16 269.35 267.45 261.25 239.55 * 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 six years. comprehensive annual financial report page 133 CITY OF ASHLAND, OREGON OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Years Fun ction/Program 2008 2007 2006 2005 2004 Police Physical Arrests, Juvenile and Adult 2,4 89 2,748 2,607 2,004 2,293 Traffic Violations 2,600 3,036 3,773 4,608 4,405 Fire Fire Alarm Responses 500 457 425 415 388 Emergency Medical Responses 3,022 2,955 2,716 2,952 2,428 Non-emergency Public Service Responses 76 87 109 100 90 Code Enforcement Plans Review 440 495 535 644 721 Total Calls for Service 3,590 3,534 4,000 3,285 3,186 Total Ambulance Patient Transports 1,700 1,616 1,511 1,243 1,274 Water Service Connections 8,291 8,281 7,870 7,764 7,609 Daily Average Consumption in Millions of Gallons 3.4 4 4 3 4 Maximum Daily Capacity of Plant in Million Gallons 8 8 8 8 8 Sewer Service Connections 8,153 8,129 7,722 7,583 7,455 Daily Average Treatment in Million Gallons 2.2 2 2 2 2 Maximum Daily Capacity in Million Gallons 4 4 4 4 4 Electric Service Connections 12,479 11,780 11,277 11,062 10,561 Telecommunication s Cable TV - 3 3,095 3,170 3,100 Cable Modem 4,153 3,988 3,823 3,686 3,4 35 Potential Station Capacity 424 424 140 161 161 1 Identifies correction to capacity 2 Identifies the implementation of new software that correctly accounts for crimes 3 Cable TV outsourced page 134 city of ash/and CITY OF ASHLAND, OREGON OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Years (continued) 2003 2002 2001 2000 1999 2,412 2 300 287 287 363 5,858 4,358 3,283 3,283 4,150 319 272 313 313 225 2,294 2,404 1,964 1,964 1,600 127 78 78 78 84 643 475 NA NA NA 2,922 2,740 2,630 NA NA 989 863 793 NA NA 7,419 7,214 7,200 6,662 6,662 3 3 4 3 3 8 10 10 10 10 7,290 7,091 7,046 6,546 6,546 2 2 2 2 2 4 6 10 6 6 10,374 10,4 90 10,441 10,105 9,884 2,961 2,4 99 NA NA NA 3,040 2,323 NA NA NA 161 161 161 161 161 comprehensive annual financial report page 135 CITY OF ASHLAND, OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM Last Ten Years Function/Program 2008 2007 2006 2005 2004 Police Stations 1 1 1 1 1 Contact Station 1 NA NA NA NA Patrol Units (vehicles) 8 8 8 8 8 Sworn Officers 27 27 27 27 30 Fire Stations 2 2 2 2 2 Fire Fighters 31 31 31 31 31 Streets Miles of Paved Streets 100 100 100 100 97 Miles of Gravel Streets 11 10 14 14 17 Miles of Storm Sewers 89 85 85 84 76 Water Miles of Water Mains 124 124 124 124 121 Hydrants 1,154 1,115 1,142 1,131 1,069 Sewer Miles of Sanitary Sewers 110 110 110 108 106 Treatment Plant 1 1 1 1 1 1 Identifies implementation of GIS system page 136 city of ash/and CITY OF ASHLAND, OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM Last Ten Years (continued) 2003 2002 2001 2000 1999 1 NA NA NA NA NA 6 6 6 6 6 29 29 26 26 26 2 2 2 2 2 27 28 24 24 24 97 78 81 78 78 19 20 7 1 5 5 55 60 55 1 14 14 115 94 90 1 55 55 1,000 987 972 875 875 106 86 88 86 86 1 1 1 1 1 comprehensive annual financial report page 137 ---~ CITY OF ASHLAND, OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM Last Ten Years (continued) Function/Program 2008 2007 2006 2005 2004 Electric Street Lights 1,802 1,802 1,771 1,707 1,338 Electrical Transformers 1,982 1,982 1,973 1,943 1,851 Poles 3,4 53 2,551 2,559 3,501 2,511 Substations 3 3 3 3 3 Telecommunications Miles of Fiber 25 25 29 25 25 Miles of Coax 117 117 110 117 117 Parks and Recreation Community Centers 3 3 3 3 3 Parks 19 19 19 19 19 Park Acreage 640 640 640 637 637 Golf Courses 1 1 1 1 1 Swimm ing Pools 1 1 1 1 1 Ice Skating Rinks 1 1 1 1 1 Skateboard Parks 1 1 1 1 1 Tennis Courts 12 12 12 12 12 Trails (miles) 29 29 29 29 29 Health Care Hospital 1 1 1 1 1 Hospital Beds 49 60 49 49 49 Education Elementary Schools 3 3 3 3 4 Elementary School Instructors 59 59 59 61 58 Secon dary Schools 2 2 2 2 2 Secondary School Instructors 106 106 106 106 90 State Universities 1 1 1 1 1 page 138 city of ash/and CITY OF ASHLAND, OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM Last Ten Years (continued) 2003 2002 2001 2000 1999 1,283 1,276 1,895 1,895 1,872 1,815 2,030 1,864 1,864 1,824 2,501 2,501 2,742 2,742 2,734 3 3 3 3 3 35 30 10 10 10 117 120 120 120 90 3 3 3 3 3 19 19 19 17 17 637 637 637 535 535 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NA NA 12 12 12 12 12 NA NA NA NA NA 1 1 1 1 1 49 49 49 49 49 5 5 5 5 5 69 93 93 93 93 2 2 2 2 2 102 116 116 116 116 1 1 1 1 1 comprehensive annual financial report page 139 ----. --- AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS comprehensive annual financial report page 141 I -- Oregon Administrative Rules 162-10-050 through 162-10-320, 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, comments and disclosures required in audit reports. The required financial statements and schedules are set forth in preceding sections of this report. Required comments and disclosures related to the audit of such statements and schedules are set forth following. comprehensive annual financial report page 143 or. PAULY, ROGERS AND CO., P.C. CERTIFIED PUBLIC ACCOUNTANTS e · 12700 S.W. 72nd Avenue · Tigard, Oregon 97223 · PHONE (503) 620-2632 · FAX (503) 684-7523 October 21, 2008 2007-2008 AUDITORS' COMMENTS AND DISCLOSURES Oregon Administrative Rules 162-10-000 through 162-16-000 the Minimum Standards for Audits of Oregon Municipal Corporations enumerate the financial statements, schedules, comments and disclosures required in audit reports. The required statements and schedules are set forth in preceding pages of this report. Required comments and disclosures related to our audit of such statements and schedules are set forth as follows: REPORT ON INTERNAL ACCOUNTING CONTROL We have audited the basic financial statements of the City of Ashland, Jackson County, Oregon, for the year ended June 30, 2008 and have issued our report thereon dated October 21,2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. The management of the City of Ashland, Jackson County, Oregon, is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. In planning and performing our audit of the basic financial statements of the City of Ashland, Jackson County, Oregon, for the year ended June 30, 2008, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. A material weakness is a significant deficiency in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. page 144 city of ash/and 2007-2008 AUDITORS' COMMENTS AND DISCLOSURES REPORT ON INTERNAL ACCOUNTING CONTROL (CONTINUED) Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses as defined above. We have issued a report on significant deficiencies dated October 21,2008. These factors were considered in determining the nature, timing and extent of the audit tests to be applied in 01 audit of the 2008 basic financial statements, and this report does not affect our report on the basic finand statements dated October 21, 2008. This report is intended solely for the information and use of the council, audit committee, management, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ACCOUNTING RECORDS The City's accounting records were adequate for audit. BUDGET TRANSACTIONS Expenditures of the various funds appeared to be within authorized appropriations. 2007-2008 and 2008-2009 BUDGETS The budgets adopted by the City for the current and ensuing fiscal year were examined during the audit. Based on our testing, it was determined that budget preparation and adoption procedures followed by the City were in compliance with the Oregon Local Budget Law. STATE HIGHWAY FUNDS The City's compliance with requirements of Article IX, Section 3a of the Oregon Constitution and ORS 294 and 373 was reviewed, and based upon our testing, were found to comply with the restrictions on the use of revenue from taxes on motor vehicle use and fuel. COLLATERAL SECURING BANK DEPOSITS We are not aware of any failure to comply with legal requirements related to the amount and adequacy of collateral pledged by depositories to secure funds of the City. comprehensive annual financial report page 145 2007-2008 AUDITORS' COMMENTS AND DISCLOSURES INVESTMENTS The City's investments for the year ending June 30,2008, were reviewed and, based upon our testing, appeared to comply with the legal requirements pertaining to the investment of public funds contained in ORS 294.035. PUBLIC CONTRACTS AND PURCHASING The City's procedures for awarding public contracts were reviewed, and based upon our testing, we found no instances of non-compliance with ORS Chapter 279 during 2007-2008. INSURANCE AND FIDELITY BONDS We are not aware of any failure to comply with legal requirements relating to insurance and fidelity bonds, however, we are not competent by training and experience to comment on the adequacy of insurance coverage. We recommend the City consult appropriate advisers related to these issues. STATUTORY BONDED DEBT LIMITATION The City's bonded debt outstanding appeared to be within the limitation established by Oregon Law. PROGRAMS FUNDED FROM OUTSIDE SOURCES We reviewed and tested, to the extent we considered necessary in the circumstances, transactions and reports relative to federal and state grant programs. Our reports concerning grant compliance and a schedule of expenditures of federal awards are contained in this report in the grant compliance review section. ~ r ~r:s 4./~/ /?C PAULY, ROGERS AND CO., P.C. page 146 city of ash/and GOVERNMENT AUDITING STANDARDS COMPLIANCE REPORTS comprehensive annual financial report page 147 I --- CITY OF ASHLAND SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Forthe year ended June 30, 2008 Federal Pass through Progra m or Cumulative CFDA Grantor's Award Disbursements / Federal Grantor/Pass-Through Grantor Program Title Number Num ber Amount Expend itures Oregon Military Department Office of Emergency Management State Homeland Security Program 11/01/2007-05/31/2010 97.073 07-201 $ 34,437.00 $ 12,578.00 Oregon Military Department Office of Emergency Management Citizen Corps Program 11/01/2007-05/31/2010 97.053 07-101 $ 10,000.00 $ 4,965.00 Oregon Office of Homeland Security Criminal Justice Services Division Citizen Corps Program 09/01/2006-06/30/2008 97.053 06-101 $ 35,542.00 $ 13,515.00 United States Department of Agriculture Federal Financial Assistance Award Ashland Wildfire Mitigation Project 2004-DG- 06/22/2004-12/31/2007 10.672 11062764-003 $ 250,000.00 $ 154,996.00 Federal Aviation Administration Nonprimary Allocation 20.106 3-41-0002-07 $ 227,900.00 $ 129,645.00 United States Department of Housing and Urban Development Community Development Block Grant Program 07/01/2007-06/30/2008-Grant Award 14.218 B07MC410008 $ 212,738.00 $ 42,457.00 07/01/2006-06/30/2007 -Unallocated Carryover 14.218 B06MC410008 32,000.00 23,333.00 07/01/2005-06/3012006-Unallocated Carryover 14.218 B05MC410008 7.00 07/01/2003-06/30/2004-Reprogrammed into FY08 14.218 B03MC410008 13,800.00 TOTAL CDBG $ 258,545.00 $ 65,790.00 TOTAL FEDERAL ASSISTANCE $ 816,424.00 $ 381,489.00 comprehensive annual financial report page 149 CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dept.: Approval: Formation of a New Transportation Commission November 18,2008 Primary Staff Contact: Mike Faught 552-2411 Public Works Engineering E-Mail: faughtm@ashland.or.us Com Dev / Leg Secondary Contact: Jim Olson 552-2412 Martha Benne Estimated Time: 5 Minutes Question: Should the City Council conduct and approve the Second Reading of an ordinance titled "An Ordinance Amending Chapter 2, Administration, Adding Section 2.13 Transportation Commission; Repealing Section 2.22 Bicycle and Pedestrian Commission and Repealing Section 2.26 Traffic Safety Commission"? Staff Recommendation: Staff recommends Council approval of the Second Reading of an ordinance titled "An Ordinance Amending Chapter 2, Administration, Adding Section 2.13 Transportation Commission; Repealing Section 2.22 Bicycle and Pedestrian Commission and Repealing Section 2.26 Traffic Safety Commission" by title only. Background: Previous Council Actions October 1. 2007 Council Study Session: The Council heard a staff report regarding recommendations from the Transportation Financing Task Force. One of the many recommendations included one to evaluate combining the current Bicycle and Pedestrian Commission and the Traffic Safety Commission into one Transportation Commission. June 3. 2008: The Council heard a staff report recommending the formation of the proposed new Transportation Commission combined with testimony from Matt Warshawsky, Transportation Safety Commission Member, and Colin Swales, Transportation Safety Commission Chair, supporting the formation of the new Transportation Commission. In addition, Art Bullock provided testimony that the proposed Transportation Commission could be successful with some focus on completing the TSP update, concern about "car focus" and advocacy. Following the presentation and subsequent testimony the Council expressed concern about the proposed sub-committee within the ordinance and requested the issue be discussed at a future study session. October 20. 2008 Council Study Session: The Council heard a staff presentation outlining the specific powers and duties of the proposed new Transportation Commission. The Council then provided staff recommended edits to the proposed ordinance. October 23.2008 Traffic Safety Commission: Staff presented the Council's proposed edits to the draft Transportation Commission Ordinance and the Traffic Safety Commission added an edit to Section 2.13.010 (C). Page 1 of2 rA' ~~ r November 4. 2008 Draft ordinance was presented to council at first reading. Two additional elements to Section 2.13.101 (C) Powers and Duties were added by the City Council. Those edits were incorporated into final ordinance as follows. C. Powers and Duties.. Generallv. The Transportation Commission will review and make recommendations on the following topics as it relates to all modes of Transportation: 1. Safety: will develop, coordinate and promote transportation safety programs; 2. Planning: · Will review and serve as the primary body to develop recommendations to the City's lone ranee transportation plans. · Will review and make recommendations in Type III Planning Actions only during the pre-application process. The meetings of the Transportation Commission are not to be considered a part of any land use hearings process. 2.13.050 Traffic Sub-Committee. B. Membership. The Traffic Sub-Committee consists of three regular members of the Transportation Commission who shall sit concurrently on the full Commission. Sub- committee members shall be appointed by the Transportation Commission Chair on a rotating basis until all members have served. Terms are for six month intervals and members may only sit for two consecutive terms at anyone time. The Public Works Director shall determine what matters warrant Sub-Committee involvement and meetines shall be convened on an as needed basis. Th~ Public Works Director or designee will serve as staff liaison and recorder for these meetings. Now that all of the edits to the Ordinance as recommended by the City Council and the Traffic Safety Commission have been incorporated, the final step is to approve the Second Reading. Related City Policies: City Charter Article 10, Ordinance adoption provisions. Council Options: (1) Move to approve Second Reading of the ordinance Amending Chapter 2 of the AMC adding Section 2.13 Transportation Commission and repealing Section 2.22 and Section 2.26. Potential Motions: Move to approve Second Reading of the ordinance Amending Chapter 2 of the AMC adding Section 2.13 Transportation Commission and repealing Section 2.22 and Section 2.26. Attachments: · Revised Ordinance Page 2 of2 --._~_.~.._-- ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 2, ADMINISTRATION, ADDING SECTION 2.13 TRANSPORTATION COMMISSION; REPEALING SECTION 2.22 BICYCLE AND PEDESTRIAN COMMISSION AND REPEALING SECTION 2.26 TRAFFIC SAFETY COMMISSION WHEREAS, the City of Ashland wishes to modify its Code with regard to Administration by adding a Transportation Commission ordinance to more closely coordinate transportation related issues specifically as they relate to safety, planning, funding and advocacy for all modes of transportation; and WHEREAS, the City of Ashland wishes to reduce duplication by repealing in total Section 2.22 Bicycle and Pedestrian Commission and Section 2.26 Traffic Safety Commission; THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Repeal. Ashland Municipal Code 2.22 [Bicycle and Pedestrian Commission] is hereby repealed in its entirety. SECTION 2. Repeal. Ashland Municipal Code 2.26 [Traffic Safety Commission] is hereby repealed in its entirety. SECTION 3. New Section. Section 2.13 [Transportation Commission] is hereby added to the Ashland Municipal Code to read as follows: 2.13 Transportation Commission 2.13.010 Established - Generallv. A. Role. The Transportation Commission advises the City Council on transportation related issues specifically as they relate to safety, planning, funding and advocacy for bicycles, transit, parking, pedestrian and all other modes of transportation. Members are responsible for reviews, studies, analysis and reports as required for the City's transportation network, or as requested by the City Council. B. Mission. The need for a Transportation Commission is emphasized in the Transportation Element: "Ashland has a vision - to retain our small-town character even while we grow. To achieve this vision, we must proactively plan for a transportation system that is integrated into the community and enhances Ashland's livability, character and natural environment. '" The focus must be on people being able to move easily through the city in all modes of travel. Modal equity then is more than just a phase. It is a planning concept that does not necessarily imply equal financial commitment or equal percentage use of each mode, but rather ensures that we will have the opportunity to conveniently and safely use the transportation mode of our choice, and allow us to move toward a less auto-dependent community." Page 1 of 5 ------- -~.T c. Powers and Duties. Generallv. The Transportation Commission will review and make recommendations on the following topics as it relates to all modes of Transportation: 1. Safety: will develop, coordinate and promote transportation safety programs; 2. Planning: · Will review and serve as the primary body to develop recommendations to the City's long range transportation plans. · Will review and make recommendations in Type III Planning Actions only during the pre-application process. The meetings of the Transportation Commission are not to be considered a part of any land use hearings process. 3. Funding: will make recommendations to the City's transportation section of the Capital Improvements Program; 4. Advocacy: will advocate and promote all modes of transportation to make modal equity a reality. · Facilitate coordination of transportation issues with other governmental entities. · Select one or more member liaisons to attend and participate in meetings with other transportation related committees in the Rogue Valley. . Examine multi-modal transportation issues. D. Powers and Duties. Specificallv. The Transportation Commission will review and forward all traffic implementation regulations to the Public Works Director for final approval and implementation of official traffic safety and functional activities. 2.13.020 Established - Membership. A. Voting Members. The Transportation Commission shall consist of nine (9) voting members as designated by the Mayor and confirmed by the council. Voting members will all be members of the community at large and will represent a balance of interest in all modes of transportation. The Chair will be elected among its members annually. A vice chair will also be elected among its members to serve in the chair's absence and who will succeed to the chair on April 30 following the chair's term expiration. Page 2 of 5 - --TT B. Non-voting Ex Officio Membership. The Director of Public Works or designee shall serve as the primary staff liaison and as Secretary of the Commission. Including the staff liaison, there will be eleven (11) total non-voting ex officio members who will participate as needed and will include one member of the Council as appointed by the Mayor, Community Development & Planning, Police, Fire, Southern Oregon University, Ashland Schools, Oregon Department of Transportation, Rogue Valley Transportation District, Ashland Parks and Recreation, Jackson County Roads. In addition to the eleven non-voting ex officio members, a student member may be appointed and would serve as an additional non-voting ex officio member. 2.13.030 Term and Vacancies. A. Term. The term for each voting member shall be three years, expiring on April 30th. B Initial Term Transition. Three of the nine members shall be appointed to initial terms expiring April 30, 2010; three of the nine shall be appointed to initial terms expiring April 30, 2011; and three shall be appointed to initial terms expiring April 30, 2012. Following these initial terms, all members shall serve for 3 year terms expiring April 30. C. Vacancy. Any vacancy shall be filled by appointment of the Mayor and confirmed by the City Council, for the unexpired portion of the term. Any commissioner who is absent without prior notification from four or more meetings in a 12 month period shall be considered no longer active and the position will be deemed vacant. 2.13.040 Quorum, Rules and Reaulations. One more than half of the sitting voting members of the Commission shall constitute a quorum. The Commission shall meet monthly and at least ten times per calendar year. The Commission may recommend or make rules and regulations for its government and procedure, consistent with the laws of the State and the City Charter and ordinances. 2.13.050 Traffic Sub-Committee. A. Purpose. The purpose of the Traffic Sub-Committee is to enable the Transportation Commission to focus on broad transportation concerns by reducing the number of routine and general non-routine traffic items that come before the full Commission and to insure the Transportation Commission will have sufficient time to devote their full attention to the overall transportation matters at issue. B. Membership. The Traffic Sub-Committee consists of three regular members of the Transportation Commission who shall sit concurrently on the full Commission. Page 3 of 5 II .- Sub-committee members shall be appointed by the Transportation Commission Chair on a rotating basis until all members have served. Terms are for six month intervals and members may only sit for two consecutive terms at anyone time. The Public Works Director shall determine what matters warrant Sub-Committee involvement and meetings shall be convened on an as needed basis. The Public Works Director or designee will serve as staff liaison and recorder for these meetings. C. Duties. The Traffic Sub-Committee shall consider the following matters: 1. Forward recommendations to the Transportation Commission and Public Works Director on routine and general non-routine traffic concerns including but not limited to traffic impacts, speed designations, parking, markings, and signage. 2. Recommend to the Transportation Commission specific comments, concerns or suggestions for the improvements to the City of Ashland's Transportation System Plan or similar Transportation programs, with the emphasis on long range transportation planning and regional transportation plans. 3. Such other general or minor transportation matters as the Transportation Commission deems appropriate for the Traffic Sub-Committee format. 4. The Traffic Sub-Committee or staff liaison may refer any matter before the Traffic Sub-Committee to the Transportation Commission when it becomes apparent the matter involves major policy concerns or potential serious transportation impacts on surrounding areas. E. Minutes. All Traffic Sub-Committee action minutes will be forwarded to the following Transportation Commission meeting. 2.13.060 Reports. The commission shall submit copies of its minutes to the City Council and shall prepare and submit such reports as from time to time may be requested of them by the City Council, Public Works Director or Community Development Director. 2.13.070 Compensation. Voting members of the commission shall receive no compensation for service while on the Transportation Commission or Traffic Sub-Committee. SECTION 4. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 5. Codification. Provisions of this Ordinance shall be incorporated in the City Code and the word "ordinance" may be changed to "code", "article", "section", Page 4 of 5 ----~- "chapter" or another word, and the sections of this Ordinance may be renumbered, or re-Iettered, provided however that any Whereas clauses and boilerplate provisions (Le. Sections 4-5) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 2008, and duly PASSED and ADOPTED this day of , 2008. Barbara M. Christensen, City Recorder SIGNED and APPROVED this _ day of ,2008 John W. Morrison, Mayor Reviewed as to form: Richard Appicello, City Attorney Page 5 of 5 -T-T---- CITY OF ASHLAND Council Communication Community Strategic Planning and Economic Development Strategy Goals Meeting Date: November 18, 2008 Primary Staff Contact: Martha Bennett Department: Administration E-Mail: bennettm@ashland.or.us Secondary Dept.: None Secondary Contact: Ann Seltzer Approval: Martha Benn Estimated Time: 30 minutes Question: Does the City Council have questions about the progress and next steps for the Community Strategic Planning and Economic Development Strategy City Council Goals? Staff Recommendation: Staff recommends Council schedule a work session in February or March 2009 to discuss the steering committee, community survey, and desired consultant services. Background: In March and April 2008, Council held two study sessions on a potential process to complete two of the City Council goals adopted in July 2007 (Community Visioning and Economic Development Strategy. At that time, staff recommended that we begin a Community-Based Strategic Plan to accomplish both goals, and that the initial phases of the Economic Development Strategy (particularly data collection and citizen outreach) be combined with this Strategic Plan. Based on those study sessions, the Budget Committee approved an "Add Package" for staffing and funding for this project, contingent 'On a future Council decision to increase the Transient Occupancy . Tax (TOT). The FY 2008-2009 budget adopted by the City Council $170,000 for the projects. In June 2008, Council increased the TOT from 7% to 9%, and subsequently allocated $170,000 for FY 2009 to this project. Council also decided not to implement the increased TOT until October 1, 2008, meaning that the City would not collect revenue from this increase until the end of January 2009. Revenue collected by lodging operators is due one month after the close of the quarter. So, TOT collected in July, August, and September is paid to the City at the end of October. Funds collected in October, November, and December are paid to the City at the end of January. Since your June decision, City staff surveyed other jurisdictions with both strategic planning and economic development positions, and crafted a project manager position, which we believe is comparable to other jurisdictions. This position has been advertised this fall, and the application deadline is November 17,2008. We hope to complete interviews and selection before December 15, 2008, with the new person expected to start work after the New Year. Staff believes the next steps for the project include: o Identifying Members of the Steering Committee. In April 2008, staff recommended that the project be led by a steering committee made up of at least 25 to 30 people who would represent diverse community interests. We recommend that Council not view this as representation from Page 1 of2 111808 Strategic Planning.CC.doc rA' -------,-,'-,---- CITY OF ASHLAND traditional community institutions, as formal institutional involvement will come as we move from strategic goals into action plans. Staff recommends this take place in Spring 2009. o Launching a community values survey. Staff recommends that the City conduct a values survey, as outlined in the proposed process, as soon as we can. Staff further recommends that the City consider using a survey instrument that can be benchmarked against other community surveys, such as the National Citizens Survey that is offered by the ICMA Center for Performance Management. o Beginning Data Collection. As outlined in the process discussed in April, one of the very first steps is identifying trends affecting the community. This requires analysis and summary of existing data. As soon as the project staff person is on board, staff will begin pulling together existing data that will outline key issues affecting the community. o Selection of project consultants. Also as soon as the Project Manager begins work, the City Council, with recommendations from staff, will need to decide which services -such as overall project facilitation or community outreach - should be provided by a project consultant. The City will develop an RFP that will identify the particular expertise needed from outside help. Related City Policies: City Council Goal: Economic Development Strategy City Council Goal: Community Visioning Project Council Options: Council can: o Schedule a session to begin identifying community interests and potential people to serve on the steering committee. o Schedule a session to discuss the survey instrument and our goals for the community survey. o Provide other direction to staff. Potential Motions: None Attachments: · April 14, 2008 Council Communication. Page 2 of2 111808 Strategic Planning.CC.doc r.l' ----~-'" r- CITY OF ASHLAND Council Communication Study Session on the Community Based Strategic Plan/ Council Goal for Visioning Meeting Date: April 14, 2008 Primary Staff Contact: Ann Seltzer Department: Administration E-Mail: ann@ashland.or.us Secondary Dept.: Secondary Contact: Martha Bennett Approval: Martha Bennett Estimated Time: 45 minutes Question: Does Council conceptually agree with recommended process and proposed governance structure capture Council's expectations about how the Community Visioning/Community Based Strategic Plan process could work? Would the proposed process achieve the objectives of Council's "Community Visioning" goal? Would the proposed process also help achieve the Council's economic Development Goal? Staff Recommendation: Staff recommends that: · Council relabel the effort as a "Community Based Strategic Plan," recognizing that defining a vision for the effort will be a key in developing specific action items. · Council combine at least the initial efforts (at least through the "Strategic Goals" step) of this effort with its Economic Development Strategy goal. · Council discuss whether the proposed process and timeline generally meets their expectations. · Council discuss the proposed formation of a broad-based "Steering Committee" to guide this effort and as part of an effort to ensure that the project reaches into the community. Background: At the March 31, study session the council discussed the possibility of combining the process for the "Visioning Goal" and a possible staffing and consulting plan for implementing these goals. Council gave staff preliminary direction about the staffing/consulting plan, but asked for time at this study session to discuss the desired outcome of the Visioning Effort and how the process would ensure widespread community participation. Council also had a discussion about whether the term "visioning" fully captures Council expectations about the effort that the City and community effort would undertake. Rather than focus on the more administrative aspects of this project (such as whether we hire staff or consultants), staff proposes that this study session will focus on the Council's desired outcomes, staff s proposal for a process, and the structure of the oversight and governance for this project. "Visioning" versus Strategic Planning After your discussion on March 31, staff believes that the term "Visioning" may not capture Council's desired outcomes for this project. In looking at other models across the county, staff feels that a more appropriate term may be "Community-Based Strategic Planning." This term seems to fit best for a number of reasons. First, staff strongly recommends that this effort include a "visioning" component. Articulating the community's hopes and expectations for its future is absolutely essential to defining what needs to change in our community to build the future we desire. Second, staff recommends that there be a specific, defined action plan - making this more like "strategic planning" than mere Page ] of 4 4 ]4082008 CC- Visioning-Economic Development.doc ~~, ,.,-..,. ~. CITY OF ASHLAND visioning - that is produced to ensure the project produces results. Third, staff believes that this strategic plan will include many p~rtners, and that the City is sponsoring the process (and probably will implement many actions) to engage the community. Economic Development Strategy As we discussed at your last meeting, many of the steps that will be needed for the Community Based Strategic Plan and for the Economic Development Strategy are the same. Staff recommends that the projects be combined through the step that we've labeled "Strategic Goals." If at that point, economic development is defined as one of the key strategic goals, then the strategy will develop from the action plans. If it is not defined, then the City can use the data from the first few steps as the basis for the economic development plan. Staff is aware that Council is concerned that there may be some actions that will be needed for specific projects prior to this action planning. In particular, there may be implementation steps for the Croman Project and the Railroad Master Plan that relate to economic development. Staff agrees that this may be a need, but we believe that many of these actions will be needed prior to adoption of a revised economic development strategy even if the Strategic Plan and Economic Development Plan projects began immediately. Proposed Process After listening to your last discussion, staff discussed how we think the project process could be designed to achieve both a "vision" statement in a relatively short period of time and also produce specific action plans that would chart a course to achieve that vision. Staff also assumes that there will be significant public involvement throughout the process, although there are a couple of places in the process (defined below) where even more extensive outreach is proposed to improve the project. We believe that at best, the total project could be achieved in 16 months, althoug~ we recommend that the project be planned for approximately 20 months from start to finish. The process we propose has the following major steps Data Gathering Phase. Staff recommends that the process gather two types of data: · Trend Data. Staff recommends that the project include a compilation of the major indicators that help us predict the future. In particular, we recommend that the project include analysis of demographic and economic data. We will also want to draw together data on other major subjects including the environment, education, transportation, arts and culture, housing, etc. (This list is by no means exhaustive). This "hard" data will be key to identifying the "probable future" for Ashland. That is, the data will tell us where we are headed as a community if we continue business-as- usual. · Values Data. Staff recommends that the project include a scientific survey of resident values. We recommend that we contract for an accurate picture of what people in Ashland truly care about. We further recommend that this step include extensive public outreach to gather diverse option about what people in Ashland value and what they'd like to see the community become. This values work will help us define the Ashland that people want - or the "preferred future." Page 2 of 4 4 14082008 CC- Visioning-Economic Development.doc r~' CITY OF ASHLAND Identification of Strategic Goals. Staff believes that once we've defined where the community is likely to head and where Ashland wants to go, the project will need to define the big changes we would have to make as a community to achieve the preferred future. Based on the experience of other communities, we would expect that there may be as many as 30 different goals identified. To make the plan "strategic" that list would be narrowed to a more manageable list of goals that would include specific action plans. This would be another point in the process where significant outreach is needed to get feedback on what the priorities should be for action plans. The steering committee would then - after that outreach - decide on the key strategic goals, likely four to six, that would move into the action planning phase. Action Plans. Staff recommends that there be a specific, detailed action plan developed by key stakeholders for each of the adopted strategic goals. These plans would be developed by committees of experts, interested people, and institutions that would need to be involved to actually implement the plan. Adoption. Staff recommends that there be a phase where the City and other key community groups with responsibility for implementing the action plans formally adopt the plan. This step would also require community outreach. Proi ect Governance Staff recommends that the Council appoint a broad-based Steering Committee to shepherd this project. This will likely be a committee between twenty five and thirty people. Their charge will be to oversee the process, to review key documents, to actively participate in public involvement and outreach, to ensure broad based community participation, and to make key decisions, such as recommending strategic goals Council would need to agree on the interests in the community which must be represented as one of the first steps in this effort. Staff believes that at a minimum, the steering committee should include the mayor and council, representatives from all sectors of the community, advocates of community related issues and community partners. The membership should include interests such as the non-profit sector, youth, environmentalists, arts and culture, seniors, faith, fiscal management, transportation, business, other governments, parks and recreation advocates, and representatives of some community institutions (which could include SOU, ACH, OSF, ASD, RCC, YMCA, SOREDI, the Chamber of Commerce, etc.). Staff believes broad community participation will critical to development and implementation of action plans and to the "staying power" of the vision. In other words, it needs to be broadly held and supported, not seen as a "City" project. Staff also believes that the Steering Committee will need to appoint advisory groups to develop action plans for each of the identified strategic goals. These advisory groups will allow us to extend involvement even deeper into the community. Membership on these groups need to be people and institutions will expertise and commitment to whatever substantive strategic goals are adopted. Other Issues Staff has prepared a proposed "Add Package" for the budget process in response to direction from Council on March 31, which will rely on a combination of staffing and consulting services to perform the project. Also, we have assumed that funding for this project is tied to a potential increase in Page 3 of 4 4 14082008 CC- Visioning-Economic Development.doc ~.t. 1 rr-r----- CITY OF ASHLAND Transient Occupancy Taxes. If your discussion on April 14 modifies either of those assumptions, we will return to you at a later date to discuss those items. Related City Policies: Council Goal: Conduct Community Visioning Council Goal: Develop an Economic Development Strategy Council Options: . Council can discuss and modify the four major topic areas outlined in this memo. . Council can provide different direction if the proposed process and governance recommendations do not meet your expectations for the Council goal. Potential Motions: . None. This item is for study session discussion. Attachments: . Draft Community Based Strategic Plan . Draft Flow Chart Page 4 of 4 4 14082008 CC- Visioning-Economic Development.doc ~.t. 1 . r:: "' - D.. (.) -- C) Q) ... cu .... ,...., I-UJ U--c <CQ) ~fA e"' m ~ ..... -- c: ~ E E o (J c co 0... c o +:i U <( C CO a.. C o ~ u <( c CO 0... C o +:; u <( c CO D.. c o :p u <( c CO a.. c o ~ u <( Q) -(1) ..cL- eo ::J .0 +J o ::J L-L1.. !l. - - en en+" Q) co tn Cf) ~ c ~.c .- c ~ ~.-:~-c :5o~ffi CO .S rJi C) ~ en.~ cacn~~ .... C> C CO c::J C ~~ ...... a.. CJ)e. '-'0 u .0, CI) 0)- .....ca CO 0 ~C) en +J ....... c ffi u CD U:= E ti=.o(1) .- ::J > co...- C') 0 .- > en C "'C ~ ~ L- :J ~....... Q) u..::J L- a.. In 0) en ::::J Q) - ::J .....COCij- 0>>5 ~ ~ >..- (I)~~~ ~ C C ::J .... ::J ::J U ::::J E E.~ CJ) EO E 0 o~ (.) C eo a.. C o +:i U <( c: ::I c: u "Eb ~ E tii .c .c ::1 E E o u ClO o o f'l I ~ DRAFT Community Based Strategic Plan April 14, 2008 City Council Study Session There are three components to the Plan that will occur first and simultaneously: 1) Form a steering committee 2) Data gathering 3) Conduct a community values survey Steering Committee Appointed by the Ashland City Council the Community Strategic Plan Steering Committee will shepherd this project. Their charge will be to foster and oversee the process to ensure its integrity, to review key documents, to be the "field marshals" and the community "faces" of the project and actively participate in public involvement and outreach and to ensure broad based community participation. The make up of the steering committee will include the mayor and council, representatives from all sectors of the community, advocates of community related issues and community partners. The membership should extend beyond city commissions and include representatives from: Non-profits, environmentalists, arts and culture, seniors, faith, fiscal management, transportation, county, parks and recreation, YMCA, housing, SOU, ACH, OSF, ASD, City, Chamber of Commerce, small business, large business, youth, SOREDI, Ashland Appreciative Inquiry, RCC, other. This will likely be a committee between twenty five and thirty people. Informational Tools Data Gathering We need to understand where we are in order to identify a "probable future". Much of the needed data exists in current city documents and likely exists in some form in other community agencies. However, we will need to get professional assistance to provide and evaluate current and future trends related to economics, demographics, technology, climate etc. Community Values Survey The results of a community values survey will provide insight into the community's preferred future and be used in the design of the public involvement process. Likely this will be a telephone survey to a statistically valid random sample of Ashland residents with an error margin of :t.5%. I ~ The results of data gathering and the community values survey will be reviewed and evaluated by the steering committee to provide local insight and guidance to the consultant design of the public involvement process. Public Involvement The public involvement process is the most critical step, the most time consuming and labor intensive. The successful design and implementation of this step will directly influence the identification of the strategic goals which will drive the creation of the strategic plan and appropriate action steps. The public involvement process includes numerous public forums, questionnaires, small group dynamics (e.g. world cafe format), and ultimately group actions to identify the strategic goals. A significant element of the process is that it builds in educational opportunities for the participants about their community; issues, challenges, economic components etc. Four or six strategic goals will emerge early during the public process. Subsequent public forums will address these specific goals and identify actions to achieve the goals. Members of the Steering Committee will serve as liaisons at the forums. Results from this process will be used to draft the Strategic Plan and Action Steps. Strategic Plan and Action Steps The Steering Committee will have discussed a framework for implementing the Strategic Plan and the need for oversight to ensure follow through. An Implementation Committee or Task Force may be formed and would include the community partners who will implement specific tasks. In addition to the City the list might include: ACH, County, Faith, Arts, Environment, ODOT, ASD, Chamber, SOREDI, Parks etc. How will it be funded? Previously, staff had suggested three possible funding solutions for developing an Economic Development Strategy: an increase in property tax, an increase in TOT, cuts to other general fund programs and/or identify new charges and fees. At this time, staff views a TOT increase as the only viable funding source for this project. The goal will be funded using the transient occupancy tax increase (TOT) that is non- tourism designated if an increase is approved by the Council. The council will consider the increase at the regular meeting on April 15. Preliminary analysis of potential funds generated from a 20/0 TOT increase indicates approximately $135,000 per year would be available for non-tourism use based on current revenue stream of$1.575 million with the current TOT rate of 70/0. However, that amount could vary 5% in either direction. We don't yet know the impact, if any, of the loss of rooms at the Windmill Inn might have on the revenue and we don't know the impact the current economy might have on room occupancy rates. ,I Staff proposes using two years of non-tourism related funds generated from an increase to the TOT; $135,000 per year plus previously designated funds for economic development of $80,000 per year for a total of $430,000 over a two year period. RARE student $23,000 Year 1 Consultant $11 0,000 Year 1 (includes community values survey, data collection, public involvement design and implementation) Consultant $50,000 Year 2 (includes public involvement implementation, draft strategic goals and action steps) MarketinglPublic Involvement $40,000 Years 1 and 2 (includes space rental, advertising, graphic design, public outreach/communications, printing) Permanent Staff Position TOTAL: $45,000 (salary and benefits) half ofY ear 1 $90,000 (salary and benefits) Year 2 $358,000 [Balance for other city use: $ 72,000)] $36,000 per year for two years (total The consultant and marketing/public involvement expenses be applied to the Council budget in Materials and Services 710.01.01.606 in FY09 ($100,000) and FY10 ($100,000). . The staff positions would be applied to the Administration budget in Personal Services 710.01.02.00.510 ($52,000 salary and benefits (RARE student and half year FTE) for Year 1 and $70,000 for Year 2. The permanent staff position will be paid from TOT funds in subsequent years and would be responsible for monitoring, tracking and implementing the strategic plan. Implementation Timeline Engage Project Consultant Recruit/Appoint Steering Committee/Task Force Data collection Community Values Survey Implement Public Involvement Draft Strategic Plan and Action Steps Implement Fall 2008 Fall 2008 Fall 2008 Fall 2008 Winter 2008 - Fall 2009 Spring 2010 Ongoing 11 >- ~ - z ::) :E :E o U C) Z - Z <( .... en ::) en c z <( C) z - z W J: ~ C) z w 0::: ~ en <i w 0::: <( en ::) u o u.. 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I E C 0 0..- " " II ~o. -----rr--.--- CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dept.: Approval: Discussion of Social Service Graqts, Budget and Process November 18, 2008 Primary Staff Contact: Lee Tuneberg Administration E-Mail: tuneber1@ashland.or.us None Secondary Contact: None Martha Benne Estimated Time: 30 minutes Question: Does Council wish to change the resolution, amount granted or the granting process for Social Services? Staff Recommendation: Staff recommends that Council review the provided information, raise any questions they may have and direct staff on steps to take in preparation for the FY 2009-2010 budget season. Background: Social Service grants are reviewed and awarded every other year with most of the evaluation of grants being done by a subset of the Budget Committee. Unless the applicant does not request two years of funding the amount awarded in the first year is increased by the growth in the budget the second year. Most often the increase is calculated using the inflationary factor assumed and approved as part of the budget process. Any unused funds could be reallocated by the Councilor could be added to the amount calculated in the next budget process. With ICCA/CERVS ending its operations in FY 2007-2008, $13,600 that year and $14,008 in FY 2008-2009 was not or will not be expended on this program. Unlike the annual Economic & Cultural grants, there has been no dedicated revenue stream to fund the Social Services grants since Federal Revenue Sharing monies ceased in the 1980's. The $46,644 in grants in 1986 has grown to a budget of$124,570 in FY 2008-09. That amount includes $2,000 set aside for Travelers' Aid that is intended to represent donations from the public. Of the $122,570 remaining, grant awar4s totaled $108,562 and $14,008 remained in the General Fund for FY 2008- 2009. Variances from the budgeted amount can happen if the subcommittee chooses to not allocate all funds or when recipients return the money when they cannot fulfill the obligations of the grant. The application process for Social Grants is done in cooperation with Medford's and that of the United Way. Because of this, there can be confusion for the applicant and for those reviewing the applications. Council discussing their goals including priority services, levels of service and venue for service provision would be beneficial to staff and those involved in the granting process. Points to ponder for Council: 1. How well does the 1986 resolution fit with today's service needs? 2. Does the two year budget process, current annual budget, and inflationary increase in the second year meet Ashland's needs? 3. What improvements are desired in the application, review process, contract and reporting from the grant recipients? Page 1 of2 ~.t. 1 ----rr-.--- CITY OF ASHLAND Several documents and reports are attached to provide Council with historical documents on this program. Additionally, several of you have been around long enough to provide valuable insight to program changes and goals over the years. Related City Policies: Resolution 86-35 Council Options: Council can direct Staff to bring back desired changes for action prior to the start of the budget process. Council could take no action, leaving the resolution and process unchanged. Potential Motions: Council moves to direct staff to bring a revised resolution and/or process as discussed and agreed upon back to Council on Attachments: Staff Memo dated August 5, 2008 Resolution 86-35 (1986-35) Social Service Grant History 1999-2000 through 2008-2009 Human Services Grants History Community Health Care and Future Social Needs Committee Report - June 1986 Preliminary Human Services Priorities - November 7, 1985 Social Service Grant Application Social Service Grant Contract Social Services Grant minutes - March 5 & 7, 2007 November 12,2008 Proposal for Implementation of Resolution 86-35 - Councilor Hartzell May 7, 2002 Report on Ashland Strategic Plan - Social & Health Services Element - Councilor Hartzell 1999 Ashland Strategic Plan - Social and Human Services Element Page 2 of2 ~.t. 1 --rr--.- ---- CITY OF ASHLAND Memo DATE: August 5, 2008 TO: Lee Tuneberg, Administrative Services/Finance Director FROM: Bryn Morrison, Account Representative DEPT: Ad ministrative Services RE: Social Service Grants On August 5,2008, I attended a meeting at the United Way to discuss Social Service agency funding. Those in attendance were Dee Anne Everson, Executive Director United Way, Angie Curtis, Director for Commission on Children and Families, Jackson County, and Louise Dix, Neighborhood Resource Coordinator, City of Medford. We discussed the upcoming Social Service funding cycle, which will happen in the spring of 2009, for funds to be disbursed in FY 2010 and FY 2011. The grants currently are disbursed in accordance with Resolution 86-35 which was adopted in September 1986 from guidance of a committee that was formed on Community Health Care and Future Social Service Needs identifying safety net services of the community. The City will have an estimated $125,000 to allocate in FY 2010 and I feel it would be worthwhile for Council to give staff guidance on how they would approve the future disbursement and use of these funds. It would be beneficial for issues such as priorities for the funds, performance measures for the funded organizations as well as accomplishment reporting, and contracts revisions to be addressed before the budget process begins in the spring. The applications for the next cycle will be available January 2, 2009 and prior notification of any changes to the current process would be helpful for the applicants. ADMINISTRATIVE SERVICES DEPARTMENT D. L. Tuneberg, Director Tel: 541488-5300 20 East Main Street Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us r... , II RESOLUTION NO. 86- 3's- A RESOLUTION ADOPTING AS CITY POLICY THE FUNDING OF HEALTH AND SOCIAL SERVICES WHEREAS, the City Council has in past years funded a number of health and social services through the City Budget with funds from Federal Revenue Sharing monies: and WHEREAS, it appears that Federal Revenue Sharing monies will not be available in the future; and WHEREAS, the Mayor has appointed a committee on Community Health Care and Future Social Needs which has concluded that the City should continue to fund certain Health and Social programs; and WHEREAS, the Council, adopts the recommendations of the Mayor's Committee insofar as it recommends said funding; and WHEREAS, the Council finds 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. NOW THEREFORE, BE IT RESOLVED AS FOLLOWS: It is hereby declared to be the policy of the City of Ashland to fund in future years from the General Fund, health and social services needs of the type currently being funded in fiscal year 1986-87 by the City of Ashland in an amount at least equal to $46,644., expressed in 1986 dollars, adjusted for inflation. The foregoing Resolution was READ and DULY ADOPTED at a regular meeting of the City Council of the City of Ashland on the d'1t.<-C day of ~jC.'Lic. J <t lL.e~_, 1986. I ,. (':::~d-<c/ ~, 'Zf24LA-~~~ Nan E. Franklin City Recorder SIGNED and APPROVED this ~ t{t. day of ~/1it:-->>du J, 1986. I ~~7It-dv~ L. Gordon Medaris Mayor I:] HUMAN SERVICES GRANTS HISTORY Prior to 1986 the City of Ashland used Federal Revenue Sharing monies to fund human services grants. When these funds were no longer available. the city council set policy enabling funding for human services grants from the general fund, adjusted each funding cycle for 'inflation. In 1985, a council/lay committee studied human service needs in Ashland. The committee identified the following categories of needs: ~oildren 0-18 years . treatment and prevention of physical and sexual abUSE . e treatment and prevention of mental and emotional disorders survival needs o food . fuel 6l shelter . medical II transportation e legal aid . crisis services 8 information and referral ,has 1 th . urgent care for ;ndigents s . in-home care - nursing, homemaking . prevention - primary care 1) well-baby, well-child clinics 2) prenatal 3) family planning 4) immunization . dental health for adults . semi-elective surgical procedures for adults substanc~ abuse At the March 28, 1989 human services subcommittee meeting, the human services subcommittee agreed that: . grant funding would be on.8 two-year cycle and . proportional allocation adjustments would be made in the second year of funding, depending on +h-""'lo _"1~__1 1 _............ ..._~ .t:.....'1 _& ......_ ______, z.._...... II 1--- fiighlights Irem COHMU~HTY HEALTH CARE AND FUTURE ~0CIAL NEEDS CGI1M!TrrE F.EPDRT At the r~que~t of the Bud~~t Committee f~r the City of AJhJand, a citizen's committee was app~intej to addr~s5 ths need {Dr new 50urces of re'enu~ to cover the eit'y's ongoing :ommitment to health and socitl ser~ic~ programs for the needy. One subc~m~ittee focussed ~n th, nee1: the other focus5e~ on alternative 50urc~s of funding. To quaJify for Medicaid in Oregon. income must be below 15% ,C poverty level" planners US! 133% to 150% of poverty level as the inde~ of um~dicaIly needy." !xtrapclated ir~m the 1980 census (with income groups assigned uni{crm growth ~tat~-wide un~~plovment per~enta~~s) indicate that there are ,,041 persons in meiicalJy n~edv. Other statistics su;~e5t that the number is hi~her. State health Estimates rates and Ashland w-hc are A fc.rmula suggested bv the Oregon D~partment of Health Planning for estimating primary nfalth care n~ed5 5hc~5 that the population of uninsured/indigent persons need up to S,OOJ Qutpali!nt visits per year that ar~ not currently provided. Ashland does n:t have a shortage of physicians but for many underemployed and uninsured resio~nls medical care is unaff~rdatl~. A;encie; giv~n grants by th, City and the estimated number of Ashland~rs sefved in 1985 ar!: Children's Dent~l Clinic- 45; Community Health Center- 1200; CERV5- 304 v~uchers {' persons MAl. 132 in the ql!aning project; Teen Center- 275; Crisis Intervention Services 5;320 calls. Calls fr:m Ashland to CIS average/month: emerg~ncv food, shelter, clothing. medicine/heslth, ~ tr~n!portation- 45; suicide- 6;"sexual assault -lZ; youth issues -19; elderly (?) -19; Jmestic vicl!n~~ -27; parenting -15; and physical ~hild abuse -11. CIS also referred Z400 calls te other Aehland agencies. They note emergency mental health housing for th~ hcmele:s and c~unsel~rs for children as unmet needs. There are no .dental ~er?ices f:r neejy adults. fcrty-fiv, of th~ 86 delinquent accounts in Sept. '85 - Jan. '86 fOf Em!rgency Room tr!5tm~nt at Ashiand C~~~unity H~spital wer! for medical nee~5 rather than a:ci1ents. Of those ~5 CaS!3, 24 were complaints of pain O~ colds. A review of nurses' notes indicated that on11 5 Jf the 24 might heve waited for a r~gular visit to a doctor Ihe 5ub~cmmitt!! concluded that an information and ref~rral resource was n~~~ssGry. Thev felt that the City might r~cvnsijer the multi-service cent~r concept, Listei as pri~rities \J! r e : =HORT TERM (EXISTING) NEEDS 1. Health Care _. In{ermati~n and referr!l crisis services with empha~is on co~r1inati~n ~n~ ccmInunication 3. n~me5tic 1icl~nce, m!ntal health LONG TERM (PLANNING) NEEDS 1. Information and referral ~ith eEPhasis on on-going ass,ssment ci cvor1ination. ConsidEr :omp~teri!ed resour:e 9uid= Z. Enhancing the U5~ of trtined vclunt~~r~ to improte cost ef!~cti~en~ss oC servicf The financial rescure!s subcommittee found that all alternative sources of {und~ to replace iejeral reVenu!-sharinq monies ccmbine~ w~uld not provide the current level of ~upport for h~alth car, and 5vcial neetl~. It is !stimeted that 50% of the workfcrc~ is employej in tJurist-rtlated lJb,3. Since p~y and benefits are traditi~n!lly low in tourism. the :ut::mmitt!~ re:cmmen1ed that th! tr!nsi~nt occupancy tax t~ increcsed from 5% to 7~. The -~5ult!nt r~v~nues would be assignei to the agencies meetin2 h~alth an~ sec!al needs, C~ESittte: Chair- Car~Jine JCbDfCl, Den L!~s. [. EI~rath. Sue Reid. Lin1~R (rGueb, Emil C!~uti!r. Phi) Arnold. Eartlra Dunl!p. ~tS M;li~. Crai2 Hat~er. SybiJ Ml:r. Hsn:f ~es; Ex Dffi:iv- Bri!1 Almquist. B:b NeJ!~a. II I ""7, --",,", /. ...e "" t.... i., l't. REPORT OF THE COMMUNITY HEALTH. CARE AND FUTURE SOCIAL NEEDS COMMITTEE Committee: Carolyn Johnson- Don Laws Ev Elerath Sue Reid Linden Crouch JUNE 1986 Chairperson Emil Cloutier Phil Arnold ,Barbara Dunlap Wes Hoxie Craig }1ather Sybil Macy Nancy Ames Brian Almquist- Exoffic ~ -'- ...,-, --- 1::'...._ i: J:.: .....l ... II I In these times of every increasing federal governmental concerns about budget deficits and the rising costs of tax-supported programs, local governments are being forced to provide more and more services to those who cannot provide for their'own needs. These federal funding cuts in health care and other social service programs initiated in 1981 while intended to protect the truly needy have actually impacted those on the margin of poverty. This segment of the population has been identified as "falling through the cracks". In January, Mayor L. Gordon Medaris, at the request of the Budget Committee, ~ppointed a citizen's committee to address the need for new sources of revenue to cover the City's ongoing commitment to health and social service programs for the needy in Ashland. At its first meeting the committee divided into two subcommittees -'one to focus on estimating Hthe need", and the other to focus on identifying alternative sources of funding. - The subcommittee on Human Service Needs Assessment spearheaded by Nancy Ames, Director of the Community Health Center. addressed the following questions: 1. How many Ashland residents have human service needs and what kinds of needs do they have? 2. Are the existing human service agencies addressing these needs? If so, do they have enough resources to address them adequately? If not, what is the magnitude and kind of needs that must still be addressed? 3. Can we identify Hthe needylt and whether or not their needs would be met if they could afford available services? Recognizing the limits the committee would face in terms of inadequate time, money, staff, data management resources and the sophisticated methodology needed for a thorough study, we set a goal of determining in general what social service needs exist in our community a~d to what extent these needs appear to be met by existing services. Information gathering was confined to brief statistical overviews and subjective testimony from persons either working in human services or working in the community on behalf of people with human service needs. The following sources of information were chosen to prepare this report: 1. An outline of human services needs prepared by the Jackson County Human Services Commission in the course of its ongoing needs assessment process for the county as a whole. Appendix A. 2. Testimony from human service providers regarding the needs they perceive in this community regardless of whether or not those needs are a concern of their own agency. Verbal reports were heard from Crisis Intervention Services (CIS), CERVS, Children's Dental Clinic, Ashland Teen Center, the Community Health Center, and Steve Bohlert a representative of the Ministerial Association. 1'1 I 3. Datu submitted by these agencies to the Budget Committee identifying the numbers of persons served. 4. Data collected at Ashland Community Hospital related to use of the Emergency Room as an inappropriate source of health care and the amount of uncollected charges. Appendix B Using data from the 1977 National Medical Care Expenditure Survey adjusted to 1984, 24% - 37% of the U.S. population under 65 years of age lacks adequate health care coverage. State Health Planners use 133% to 150% of poverty as a.n index of ttmedically needy". Although currently one must be below 75% of poverty to.qualify for Medicaid in Oregon. That translates to an extimated 2641 persons between 75% and 150% of poverty in Ashland. THE POPULATION POVERTY LEVELS IN ASHLAND, OREGON LEVEL OF POVERTY Incomes as a per cent of Federal Poverty Level 1979 - Number of Persons 1 1986 - Estimated Nume of Persons 2 o - 75% 1481 1555 ~~-~~~--~-~~~--~-~~~~~~~-~~~~~~-~~~~-~-~-~-~-~-~~~~---~~---~~-~--~~~-~~~--~--- o - 100% 2420 2541 76 - 100% 939 986 -..............--....-.... -...............- -...- -....... -.'.-............... -.- ............. --..... .........__,_ --'~'___'''' .... .....aIII/I_._ _ ....__........ ........... ........ _ ~,....,.,~.......... ..._....._ __- _ _...._ -. ..... ........ __.-...- _ .... _ 7S - 124% * 126 - 149% * 150 - 199% 200% and above 1722 794 1384 8440 1808 833 1453 8862 *State H~alth Planners use 133% to 150% of poverty as an index of ftmedically needy" although currently one must usually be below 75% of poverty to qualify for. Medicaid in Oregon. 1 From 1980 Census, based on 1979 levels of reported income. 2 Using 5% increase in population, based on total figures 1980 and 1986, and estimating each group increase at same rate. NOTE: This is probably conservative, s..ince the December 1984 State of Oregon Labor Market Analvsis for District 8 (Jackson and Josephine Counties) reports that the % of population under 100% of poverty in 1979 was 11.7% nationally and by 1983 was 15.2% of the population. Jackson County has stayed generally in a position of higher unemployment and lower median income than either State or National averages during that time. A study published in the Journal of the American Medical Association (JAMA) in February. '1986 indicated that the segment of'the population lacking adequate health insuranc~ protection includes the short-term unemployed and their dependents, persons uninsurable for medical reasons, the working poor and self-employed individuals who do not have access to group coverage and who cannot afford the premiums for adequate individual coveraRe. II ,---- The testimony from the human service providers, particularly Crisis Intervention Services and CERVS gave the subcommittee insight into what might"be called the "demographics of need" in Ashland. C.I.S. keeps data collected for one month of every six. on the kinds of calls for help that are generated in Ashland. 5,320 calls of 28.000 total calls are from Ashland. The following is a breakdown of Ashland requests: CALLS PER MONTH 45 AREA OF CONCERN Emergency Needs - food, shelter. clothing, medicine/health or transportation 6 Suicide Calls 12 Sexual Assault 19 Youth Issues - all kinds (from If I don't get enough allowance" to "I have just run awayn or serious family disputes 19 Elderly 27 Domestic Violence 15 Parenting 11 Physical Child Abuse In addition, 2400 referrals were made to agencies in Ashland and 36 Ashland residents were sheltered in Dunn House, 13 families per week were receiving support from Parents Anonymous groups and 20 per week from domestic violence support groups. C.I.S. identified that unmet needs included emergency mental health housing for the homeless (including transients) and counselors for children. CERVS pointed out that there is no current economic index which measures the problem of underemployment. That is, statistics on employment take into account both part-time and seasonal/temporary work and full-time, long-term employment. As a result, it is difficult to measure the numbers of people whose incomes do not provide enough for adequate health care, transportation, medicines, utilities etc. CERVS testimony reiterated the need for adult mental health services and concerns about domestic ciolence. In addition to those who received vouchers for emergency needs, 132 people in Ashland participated in the gleaning project. Children's Dental Clinic (CDC) reported that there had been a slight decline in requests for children's" dental treatments. However, there are no ~p.rvirp~ nT"nvitipn fnr J:ln"lt- tipn"~' ~.::a,.~ fn,- t-h~ intiiO'pnt"_ 1:1 I The Teen Center noted that although they provided services to a cross-section of young teens in Ashland, there appears to be growing numbers of separations and divorces with resulting single-parent households which add to the problems of adolescence. The Teen Center suggested that more recreational opportunities and more school counseling and other counselin~ might help offset these emotional stresses. Community Health Center (eRe) agreed tpat domestic violence/sexual abuse appeared to be increasing. It was stressed that the problem with the medical se~ice delivery system in Ashland is not a shortage of physicians, but rather that medical care is unaffordable for a large number of underemployed and uninsured. Nancy Ames of eRe illustrated a formula that had been suggested by the State Department of Health Planning to obtain some idea of primary health care needs. The population of uninsured/indigent within the City of Ashland would require up to 5000 outpatient visits per year that are not currently provided. The State of Oregon's Health Planners are preparing a formal study to be completed by the end of this year. A review of 207 "no-pay" emergency room accounts for visits made in September, October, November 1985 and January 1986 concluded that 62% had no insurance and 64% had no physician. The 50% who were listed as unemployed included retired seniors over age 65, sasc students and minors bringing the actual unemployed to 23%. THE SERVICES _PROVIDED BY AGENCIES SUPPORTED BY CITY OF ASHLAND GRANTS IN ASHLAND AGENCY EST. NUMBER OF INDIVIDUAL CAS: NUMBER OF ASH~~ SERVICES . Ashland Teen Center Childrens' Dental Clinic Community Health Center CERVS Crisis Intervention Services - separate calls, referrals, residents, group counseling sessions Est. People Served 275 45- Visits 4500 Est. + 45 based on Ashland population as a percentage of Jackson County's 2400 304 9472 1200 NA NA TOTALS Estimated Only 16,676 or 321/week over 150c II I Conclusions: On the basis of information gathered from these sources, the subcomrnit established priority needs for both the short and long term. An attempt was made to limit the list to the number and type of needs the City of Ashland might reasonably expect to address. Short Term (Existing) Needs 1. Health Care 2. Information and Referral" Crisis Services with emphasis on coordination and communication 3. Domestic Violence and mental heal th ' Long Term (Planning) Needs 1. Information and R~ferral with emphasis on on-going assessmen of coordination. Consider impl mentation of computerized resc guide 2. Enhancing the use of trained volunteers to improve cost effectiveness of service deliv Taken together, the information provided both from testimony and statistics very clearly supported the value of keeping some sort of informs and referral resource active to avoid unnecessary inefficiences such as inappropriate emergency room use, and people not taking advantage of availa services when needed. C.I.S. stated that if their funding was cut they would decrease their emphasis on I & R. The subcommittee felt that the City of Ashland might need to reconsider the multi-service center concept and set its own Information and Referral system. The Financial Resources Subcommittee studied several alternative sources of fundings to rep1ace the loss of federal revenue sharing funds that have supported human resources in the past. Several small sources of funding were identified bu~ added together they would not provide the current level of support t~ these agencies on an ongoing basis. Ashland has a unique economy which results in there being substanti~l numbers of working poor in this community. The tourist industry traditiona has 'low salaries and minimum health care benefits. The latest figures used by the Ashland Chamber of Commerce are "approximately 50% of Ashland's work force is involved in tourist-related jobs," many of which typically pay base rate between $3.50 and $5.00 per 'hour. After average withholdings the weekly take home pay is below the poverty line. Therefore, Ashland has a need for low-cost primary health care and logically the funding for these programs could be tied to the tourist industry. Through the use ot the hotel/motel tax, the citizens could main- tain a program meeting human services needs without direct cost to themselves. The tourists. the visitors that we serve would pay. The committee therefore recommends an increase in the transient occupancy tax from 6% to 7% with the increase to be used to fund those agencies identified by the Budget Committee and the City Counci~ as meeting the objectives discussed herein. II I PRELIMINARY HUMAN SERVICES PRIORITIES PREPARED FOR DISCUSSION PURPOSES FOR THE PUBLIC HEARING NOVEMBER 7, 1985 CHILDREN Two age categories identified: 0-12 years and 13-18 years a) Treatment and prevention of physical and sexual abuse b) Treatment and prevention of mental and emotional disorders SURVIVAL NEEDS a) Food b) Fuel c) Shelter d) Medicine - e) Transportation f) Legal Aid g) Crisis Services h) Information and Refer HEALTH a. Urgent care for indigents b. In-home care -- nursing, homemaking c. Prevention - Primary Care 1. Well-Baby, Well-Child Clinics 2. Prenatal 3. Family Planning 4. Immunization d. Dental Health for adults e. Semi-elective surgical procedures for adults SUBSTANCE ABUSE Aooendix A 1,1 I t THE SUHV;~Y BELO\; ~';AS TJiK;'~IJ FROh ASHLA,NJ COHf.!UUITY HOSl'ITi\L PhTI~IIT COLI.:~CTICNS (nO-?A'Y A CCOUNTS FOR TH'~ };OJJ'l'H~. OF m~ PT~~HBEn, OCTOBi.1l, NOV1:J.I!BR, 1985, and J AUU iuiY, 1986. PUR?O:'"'E: TO IfLLP DZV::WP l~ mOFID OF TEOSB IN THE COJ.\},~UHITY HAVli.iG FlHANCIAL DIF'Fl CULTI3S. iIDNBBR OF ACCOUIITS m.JR V..::r~D : 207 95 (46~~) fi~\ (5l~~) 78 (Jo~) .. 129 (627~) 77 (37%) 130 (63;-;) 103 (50%) 104 (r.~nus the neA~ 3 categories:ninors, elderly, sase students Hould bring this to 47(237;) sase StudentD: (13) l~nors: (35) Humber livin:z in Ashland: Out-of -t-01:111 (Or eROJll : Ou:t. -of -S ta.te : NQmbe~ with insur~nce: with no in~urance: Those married: sinl!le: . Those 8rrfoloyed: unernnloved: Over '65 yrs.old: (9) .. .. -. . . .. . '. . . . . . . . . . . . . . TO PIHP01~!T W}G~ OR HOT ALL Elm\C2NCY ReOli PA'rll~NTS \:BRE CONIlJG I;:~ FOR IEGITI!ii\~ REASONS, THE f,URV1';Y t.:AS EXTENDED, AND OUT OF THE J..BOVlf., 2C:? ACCOUNTS, S6 (W) \~{E SEZN AS ER PATIENTS, AND !o'OLlD\'VING IS A BREAKDOl.,tl OF COHPlJ\INTS AND STATISTICS: tccidents: U (50%) Kedical: 45 (50~~approx) a. PAIU (in various parts of body (12) b. Colds, fevers (12) c. J..tigrai.~es (7) d. Food Poisoning1Vomiting,1!ausea (6) e. l:i.sce11a.neous:bleeding, internally; rape; overdose lJo Fcrn:ily Doctor: (55) (64%) a. Out of the 55: 1. 24 '-lere from Ashland 2. 16 were out-of-state 3. 15 "rere out-of-to'\':n Seen on the 'Week end: 36 (~%) (Saturday and SW1dey) (Af~er studying nurses's notes on t pain, and colds I I could co~ up ~dth only 5 admits I felt were probably questicnable) (coulu have ,.;aited for Dr., if they had one) asthma, sinus; seizure; rashes; Friday lias next ".1. th: 13 CONCLUSION: The average person \.a th financial problems could be from in or out of town; would be a single person; (the ccncensus is that the person would be predominately male, age group 20-45); have no insurance j nnd could dei'ini tely be unemployed. If said person ,.,ere an emereency r001:l patient, he or she ,'x;>uld most often be in on a Saturday or Sunday because of an (1) accident, priIr..arily, or (2) a pain, or (3) a cold, unci 1-lOuld have no family doctor. S)~ II MEMO TO: SUBJECT: DA TE: AGENCIES SEEKING FUNDING FROM: CITY OF ASHLAND, CITY OF MEDFORD, UNITED WAY 2007-2008 FUNDING APPLICATION DECEMBER 1,2006 The above funders have agreed on forms and procedures for the upcoming funding cycle. Now not only do these funders have common applications but this is patterned closely after several local foundations. We are hopeful it makes this process more efficient for applicants. Enclosed are application materials and information regarding requirements. The application is available via email by calling United Way at 773-5339. The applications must be completed in the space provided. Funder Contact Copies Due Date Enclosures: application, logic model. I I CITY OF ASHLAND Social Service Grant Application Requirements Check List Date and Time Submitted: Organization Name: Contact Person and phone number: Submit twelve (12) copies of the entire application packet assembled in the order listed below, unbound. Please do not staple, a binder clip is acceptable. Application Annual budget for each year of funding cycle for agency on provided form (2 pages total) ProjecUProgram annual budget on provided form (2 pages total) Logic Model on provided form Agency Board Profile on provided form Client Demographic Profile on provided form List of officers and board members with their affiliations and phone numbers Form 990 from the Internal Revenue Service Report on how the funds were spent from the 2005-2007 Funding cycle from the City of Ashland, if funded* Audit, financial review conducted by an independent Certified Public Accountant plus management letter Descriptive brochure if available 1 Copy of 501 (C) and tax exemption letter from the Internal Revenue Service *There is not a specific form to use for this report. Please provide the amount the organization was granted from the City of Ashland in the previous cycle, and how those funds were used. 2 ---rr-r - Agency Application Forms (revised 10/06) For applications to City of Medford, City of Ashland, Jackson County and United Way_ This application to: City of Medford. _ City of Ashland _ United Way Applications must be postmarked by the deadline to receive consideration by the funders. All funders have the same due date: February 16,2007. Contact information for each funder is detailed in the cover memo. Late and incomplete applications will be rejected_ Please use only the space provided. Do not extend response onto separate sheet. If you use a computerized version of this application it must match this application form as presented. An application form submitted with answers expanded beyond the space indicated will not be considered. DATE: ORGANIZATION NAME: FOUNDING DATE: ADDRESS: Street City State Zip CONTACT PERSON: Name Title Work Phone/FAX E-mail Signature of Board President Signature of Executive Director/CEO Type Name Type Name 3 .,-,- .----- PROPOSAL INFORMATION 1. Description of organization and its purpose. 2. Number of paid employees: Number of volunteers: 3. Description of project/program for which funds are requested: 4. Specifically, how will the grant funds be used? If any of these funds will be used for capital outlay, please d~scribe. 5. How was the need for the project determined and how will the project/program respond to this need? 4 ------rr--r-- 6. What are your organization's special qualifications to address these objectives? 7. How does this project/program fit into the long-range plans ~f the organization? 8. List other groups addressing similar objectives and the extent of your coordination with each. 9. Project period: Beginning: 10. Geographic area to be served: 11. Client group and numbers to be served: 12. Current annual organizational budget: Amount budgeted for administration: 13. Total financial support received last fiscal year: $ Sources of this support: Memberships and individual contributions $ Fundraising activities $ 5 II .---- Government programs Foundations $ $ $ $ United Way Other (identify) 14. Provide or estimate fundraising costs (salaries, brochures, mailings, professional services, grant writing). If you have an audit, this figure is to be taken directly from your audited fmancial statements. $ 15. Total organization budget: $ Amount requested from funder: $ Total program budget: $ 16. List other sources of support being applied for (sources and amount): 17. If project/program is successful, how will it be funded in the future? 18. Please describe what you are doing to promote community wellness with your program? 6 1.1 I Agency Board Profile Agency Name: Date: 1. 2. Number of board members required in bylaws? Number of board members? Minimum Maximum Voting _ Vacancies 3. List various board, advisory and ad hoc committees and the number of people on each. Committee Number of Members 4. Characteristics of Board of Directors at time of application: Ethnicity Male Female African American Asian Caucasian Hispanic Native American Other Total Residence Male Female Ashland Central Point EAGLE POINT GOLD HILL/ROGUE RIVER Jacksonville, Ruch, Applegate Medford PHOENIX/TALENT Shady Cove, Butte Falls, Trail, Prospect, Other Upper Rogue 7 II I White City Other Total 8 " I Client Demographic Profile Agency Name: Staff Contact: Fax#: Gender Female Male II. AGE* Infants 0 to 4 years Youth 5 to 17 years Adult 18 to 39 years ADULT 40 TO 64 YEARS Adult 65 and over Unknown Total III. Race/Ethnicity Caucasian African American Asian/Pacific Islander Native American/Aleutian Hispanic Other Unknown Total *at point of entry for service Program Name: Phone #: E-Mail Address: IV. Residence* Ashland Central Point Eagle Point GOLD IDLLAND ROGUE RIVER Jacksonville,ltuch, Applegate Medford PHOENIX/TALENT Shady Cove, Butte F aIls, Trail, Prospect, Other Upper ltogue White City Other Unknown Total 9 . ORGANIZATION BUDGET 2007 RECIPIENT AGENCY: PltOJECT NO.: PltOJECT TITLE: PltOJECT PEltIOD: July 1,2007 to June 30, 2008 * lease * secured commitments TOTAL REVENUE $ A. PEltSONAL SEltVICES Total Salaries $ Total Benefits $ TOTAL PERSONAL SERVICES $ B. MATEltIALS & SEltVICES: lease detail other ma.or bud et cate ories) $ $ $ $ $ $ TOTAL MATERIALS & SERVICES $ C. CAPITAL OUTLAY (must constitute part or all of funded public service activity to be eligible /Identi : TOTAL CAPITAL OUTLAY $ $ $ $ $ TOTAL EXPENDITURES (Sum of A, B & C) 10 'I I ORGANIZATION BUDGET 2008 ltECIPIENT AGENCY: PltOJECT NO.: PltOJECT TITLE: PltOJECT PEltIOD: July 1, 2008 to June 30,2009 $ $ $ $ $ $ $ * lease * secured commitments $ TOTAL REVENUE $ A. PEltSONAL SEltVICES Total Salaries $ Total Benefits $ TOTAL PERSONAL SERVICES $ B. MATEltIALS & SEltVICES: lease detail other ma'or bud et cate ories) $ $ $ $ $ $ TOTAL MATERIALS & SERVICES $ C. CAPITAL OUTLAY (must constitute part or all of funded public service activity to be eligible ex ense E ui ment $ Furnishin s $ Other ca ital ex enses /Identi : $ TOTAL CAPITAL OUTLAY $ TOTAL EXPENDITURES (Sum of A, B & C) $ 11 II I PROJECT BUDGET 2007 RECIPIENT AGENCY: PROJECT NO.: PROJECT TITLE: PltOJECT PEltIOD: July 1, 2007 to June 30, 2008 $ $ $ $ $ $ $ * lease * secured commitments $ TOTAL REVENUE $ A. PEltSONAL SEltVICES Total Salaries $ Total Benefits $ TOTAL PERSONAL SERVICES $ B. MATEltIALS & SEltVICES: lease detail other ma'or bud et cate ories) $ $ $ $ $ $ TOTAL MATERIALS & SERVICES $ C. CAPITAL OUTLAY (must constitute part or all of funded public service activity to be eligible /Identi : TOTAL CAPITAL OUTLAY $ $ $ $ $ TOTAL EXPENDITURES (Sum of A, B & C) 12 --,,-,------ -- PROJECT BUDGET 2008 RECIPIENT AGENCY: PltOJECT NO.: PltOJECT TITLE: PltOJECT PEltIOD: July 1, 2008 to June 30, 2009 * lease * secured commitments $ $ $ $ $ $ $ $ $ TOTAL REVENUE A. PEltSONAL SEltVICES Total Salaries Total Benefits B. $ $ $ $ $ $ $ $ $ TOTAL MATERIALS & SERVICES $ C. CAPITAL OUTLAY (must constitute part or all of funded public service activity to be eligible ex ense E ui ment $ Furnishin s $ Other ca ital ex enses /Identi : $ TOTAL CAPITAL OUTLAY $ TOTAL EXPENDITURES (Sum of A, B & C) $ 13 I I SAMPLE Agency Name: Program Name: School and Community Violence Prevention Project RESOURCES ACTIVITIES OUTPUTS OUTCOMES GOALS *Staff *Delivery of violence *4-6 hours of violence *Improvement in healthy *Violence prevention prevention curriculum in the prevention education for peer social communication *Violence prevention schools (pre-K-4th grade) 1890 students (pre-K- as measured by... curriculum 4th grade) *Intensive violence prevention *Reduction of violent * Case management services groups to high risk *480 students to receive behaviors in school youth intensive prevention climate *Partnerships: training in 10-week groups as measured by... University, counseling *Intensive outreach services of 6-10 students each centers, sheriffs to families with high-risk *Increase in healthy department, school youth *185 at risk families receive behavioral patterns in district intensive outreach services handling stress *DARE (Drug Abuse as measured by... *Participants Resistance Education) *60 at risk families receive family empowerment *Consumer satisfaction *F amily empowerment project project services as measured by... services to families Resources are the Activites are what you Outputs are how many Outcomes are what you Goal is the overriding ingredients of your program. do. you do. cause to change. purpose of your program. 14 "I I Agency Name: Program Name: RESOURCES ACTIVITIES OUTPUTS 15 OUTCOMES GOALS I I~.--- CITY OF ASHLAND FINANCIAL ASSISTANCE AWARD CONTRACT CITY: CITY OF ASHLAND GRANTEE: <<Organization>> 20 E Main Street Address: <<Address>> Ashland OR 97520 <<City>>, <<State>> <<Zip_Code>> (541 ) 488-5300 Telephone: <<Phone_Number>> FAX: (541) 552-2059 Term of this agreement: July 1, 2007 to June 30, 2009 Amount of grant: <<Amount_Adopted>> which will be disbursed twice: Once at July 1, 2007 and once at July 1, 2008 adjusted for inflation. Budget subcommittee: Social Service Grant Contract made the date specified above between the City of Ashland and Grantee named above. RECITALS: City has reviewed Grantee's application for a grant and has determined that the request merits funding and the purpose for which the grant is awarded serves a public purpose. This Grant agreement (ORS 279A.010 (i) (A) (ii)) is not a public contract for purposes of ORS 279 A-C. ORS 279A.010 (x). City and Grantee agree: 1. Amount of Grant. Subject to the terms and conditions of this contract and in reliance upon Grantee's approved application, the City agrees to provide funds in the amount specified above. Grant funds shall be utilized or contractually committed in the fiscal year for what they are awarded. 2. Qualified Work. Grantee has represented, and by entering into this contract now represents, that any personnel assigned to the work required under this contract are fully qualified to perform the work to which they will be assigned in a skilled and worker-like manner and, if required to be registered, licensed or bonded by the State of Oregon, are so registered, licensed and bonded. Grantee must also maintain a current City business license. 3. Use of Grant Funds. The use of grant funds are expressly limited to the activities in the grant application with modifications, if any, made by the budget subcommittee designated above. Grantee will report in writing on the use and effect of granted monies compared to the original request (as modified) per the following: a. Within 90 days of the event completion (Single event applications) b. As part of a subsequent application for grant funds from the City c. Within 90 days of the end of the current budget fiscal year, whichever is earlier Grant applicants awarded less than $2,500 are encouraged to maintain documentation to this effect but are not required to submit a report unless requested by the City except under 2 b. above. 4. Unexpended Funds. Any grant funds held by the Grantee remaining after the purpose for which the grant is awarded or this contract is terminated shall be returned to the City within 30 days of completion or termination. 5. Financial Records and Inspection. Grantee shall maintain a complete set of books and records relating to the purpose for which the grant was awarded in accordance with generally accepted accounting principles. Grantee gives the City and any authorized representative of the City access to and the right to examine all books, records, papers or documents relating to the use of grant funds. I I 6. Living Wage Requirements. If the amount of this contract is $17,342 or more, and if the Grantee has ten or more employees, then Grantee is required to pay a living wage, as defined in Ashland Municipal Code Chapter 3.12, to all employees and subcontractors who spend 50% or more of their time within a month performing work under this contract. Grantees required to pay a living wage are also required to post the attached notice predominantly in areas where it will be seen by all employees. 7. Termination. a. Mutual Consent. This contract may be terminated at any time by mutual consent of both parties. b. City's Convenience. This contract may be terminated at any time by City upon 30 days' notice in writing and delivered by certified mail or in person. c. For Cause. City may terminate or modify this contract, in whole or in part, effective upon delivery of written notice to Grantee, or at such later date as may be established by City under any of the following conditions: i. If City funding from federal, state, county or other sources is not obtained and continued at levels sufficient to allow for the grant; ii. If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the grant purposes are no longer allowable or appropriate for award under this contract or are no longer eligible for the funding proposed for payments authorized by this contract; or iii. If any license or certificate required by law or regulation to be held by Grantee to provide the services required by this contract is for any reason denied, revoked, suspended, or not renewed. 8. Default. If Grantee fails to perform or observe any of the covenants or agreements contained in this contract or fails to expend the grant funds or enter into binding legal agreements to expend the grant funds within twelve months of the date of this contract, the City, by written notice of default to the Grantee, may terminate the whole or any part of this contract and may pursue any remedies available at law or in equity. Such remedies may include, but are not limited to, termination of the contract, stop payment on or return of the grant funds, payment of interest earned on grant funds or declaration of ineligibility for the receipt of future grant awards. In the event of termination, City may stop payment or withhold any Grant funds in City's possession from Grantee and Grantee shall immediately return all unexpended and unencumbered grant funds. In addition, City shall be entitled to recover any administrative costs, including attorney fees or collection costs if encumbered as a result of Grantee's failure to return Grant funds. In the event of termination, if Grant funds are not returned or it is found that Grant funds were misappropriated, Grantee shall be ineligible and disbarred from receipt of future grant funds until such matters are finally adjudicated and settled. The rights and remedies of this section are not exclusive and are in addition to any other rights and remedies available to the City under the law. 9. Amendments. The terms of this contract will not be waived, altered, modified, supplemented, or amended in any manner except by written instrument signed by the parties. Such written modification will be made a part of this contract and subject to all other contract provisions. 10. Indemnity. Grantee agrees to defend, indemnify and save City, its officers, employees and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, subrogation's, or other damages resulting from injury to any person (including injury resulting in death,) or damage (including loss or destruction) to property, of whatsoever nature arising out of or incident to the performance of this agreement by Grantee (including but not limited to, Grantee's employees, agents, and others designated by Grantee to perform work or services attendant to this agreement). Grantee shall not be held responsible for damages caused by the negligence of City. 11. Insurance. Grantee shall, at its own expense, at all times for twelve months from the date of this agreement, maintain in force a comprehensive general liability policy including coverage for contractual liability for obligations assumed under this Contract, blanket contractual liability, -----n-r---- products and completed operations, and owner's and contractor's protective insurance. The liability under each policy shall be a minimum of $500,000 per occurrence (combined single limit for bodily injury and property damage claims) or $500,000 per occurrence for bodily injury and $100,000 per occurrence for property damage. Liability coverage shall be provided on an "occurrence" not "claims" basis. The City of Ashland, its officers, employees and agents shall be named as additional insureds. Certificates of insurance acceptable to the City shall be filed with the City's Risk Manager or Finance Director prior to the expenditure of any grant funds. Grantee shall at its own expense provide the following insurance: Worker's Compensation insurance in compliance with ORS 656.017, which requires subject employers to provide Oregon workers' compensation coverage for all their subject workers. 12. Assignment and Subcontracts. Grantee shall not assign this contract or subcontract any portion of the work without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be void. Grantee shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all persons employed by them, and the approval by City of any assignment or subcontract shall not create any contractual relation between the assignee or subcontractor and City. 13. Merger. This contract constitutes the entire agreement between the parties. There are no understandings, agreements or representations, oral or written, not specified in this contract regarding this contract. Grantee, by the signature below of its authorized representative, acknowledges that it has read this contract, understands it, and agrees to be bound by its terms and conditions. 14. Governing Law; Jurisdiction; Venue. This contract shall be governed and construed in accordance with the laws of the State of Oregon without resort to any jurisdiction's conflict of laws, rules or doctrines. Any claim, action, suit or proceeding (collectively, "the claim") between the City (and/or any other or department of the State of Oregon) and the Grantee that arises from or relates to this contract shall be brought and conducted solely and exclusively within the Circuit Court of Jackson County for the State of Oregon. If, however, the claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon filed in Jackson County, Oregon. Contractor, by the signature herein of its authorized representative, hereby consents to the in personam jurisdiction of said courts. In no event shall this section be construed as a waiver by City of any form of defense or immunity, based on the Eleventh Amendment to the United States Constitution, or otherwise, from any claim or from the jurisdiction. 15. Nonappropriations Clause. Funds Available and Authorized: City has sufficient funds currently available and authorized for expenditure to finance the costs of this contract within the City's fiscal year budget. Grantee understands and agrees that City's payment of amounts under this contract attributable to work performed after the last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow City in the exercise of its reasonable administrative discretion, to continue to make payments under this contract. In the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this contract without penalty or liability to City, effective upon the delivery of written notice to Grantee, with no further liability to Grantee. 16. Non-Discrimination. Grantee shall comply with all appli'cable federal, state and local laws, rules, and regulations on nondiscrimination because of race, color, ancestry, national origin, religion, sex, marital status, sexual orientation, age, medical condition, or disability. GRANTEE CITY OF ASHLAND By By Finance Director Title Date Date ; I I SOCIAL SERVICE GRANT PRESENA TIONS MARCH 5 AND 7, 2007- PAGE 1 OF 7 CITY OF ASHLAND Social Services Grant Presentations Minutes March 5 and 7, 2007 7pm Civic Center, Council Chambers, 1175 East Main Street CALL TO ORDER The Citizen's Budget Committee meeting was called to order at 7: 1 0 pm on March 5, 2007 in Council Chambers, 1175 East Main St., Ashland Oregon. ROLL CALL Committee members Everson, Hardesty, Hartzell, and Heimann were present on March 5. Everson, Hardesty, Hartzell, Heimann and Morrison were present on March 7. STAFF PRESENT: LEE TUNEBERG, ADMINISTRATIVE SERVICES/ FINANCE DIRECTOR BRYN MORRISON, ACCOUNT REPRESENTATIVE ELECTION OF A CHAIR Everson/Hardesty ms Heimann as chair. All ayes. PUBLIC INPUT None STAFF REPORT AND PRESENTATIONS: Lee Tuneberg, Administrative Services/Finance Director spoke to the history of the grant and process. It is a two year cycle; the second year the amount that is granted is based upon the inflationary rate, the CPI-U. This year $119,000 is available with requests at almost $200,000. The Committee determined to allow each program 3 minutes to present and would limit their own questions afterward to 5 minutes. The Committee thanked the organizations that applied and assured them that all of the applications would be reviewed. Community Health Center- Peg Crawley. This is the 35th year of the operation and they are asking for funding for primary and preventive health service for low income citizens of Ashland. They have been able to provide medication assistance in the past and are in partnership with the county health department to increase immunization rates in Ashland. Ms. Everson asked what their growth had been over the last year. Ms. Crawley responded that staff had not grown. The uninsured has increased 200/0 and they are seeing increasing numbers of small businesses not able to provide insurance. SODA- Shawn Martinez. She spoke to their mission of prevention, treatment and maintenance for a healthy environment and the underage use and adult use of drugs. She spoke to connecting to community members and that 990/0 of youth that attended training felt more T1 SOCIAL SERVICE GRANT PRESENATIONS MARCH 5 AND 7, 2007- PAGE 2 OF 7 empowered to make good decisions than before. Ms. Everson asked what the impact was for Ashland. Ms. Martinez responded 20 youth at the middle school, 75 community members that attended forums and trainings, and one business with a large number of employees. Ms. Hartzell asked if the trainings and forums were in Ashland. Ms. Martinez responded that they were at the Windmill Inn. Ms. Hardesty asked if they target methamphetamine users or is it part of all. Ms. Martinez responded that is part of it, they target underage drinking, marijuana, tobacco as well based on what the schools say they need help with. Mr. Heimann asked if they are at the high school. Ms. Martinez responded not now. Their program is for January. Children's Dental Clinic- Deb Silva. They meet the unmet dental needs of school age children living in poverty. Their goal is to see children receive essential dental services. 570/0 of children seen had visible decay. 400/0 did not have dental insurance. Each child received $932 average in dental care. They currently have 30 dentists and 8 hygienists. Each child receives home care kit. Ms. Everson pointed out that their budget did not reflect in kind care that they provide. Ms. Hartzell asked if they were granted more funds, if they would be able to help more than the 15 currently in Ashland. Ms. Silva responded that the treat every child and may not see an increase in Ashland since the poverty level is not as profound. Mr. Heimann asked how the program was publicized. Ms. Silva responded through ESO, through schools, television, radio, but mostly referral. Planned Parenthood- Maggie Sullivan. Ms. Sullivan provided a OVO presentation on their program. Ms. Hartzell asked how they are measuring effectiveness. Ms. Sullivan responded that they ask adults on the attitudinal change, they conduct surveys. Ms. Everson asked if the program's priorities are fitting in Ashland. Ms. Sullivan responded that Ashland has taken the lead in the county as a progressive voice and they may be able to do more in Ashland schools than other. They try out things in Ashland before other schools. The Committee discussed their program and if it was a safety net service. They offer health education, prevention, family planning, provide youth development opportunities. Ontrack- Pam Marsh. They are a non profit founded in 1969 and feature comprehensive drug and alcohol services. Family is at the core of all services offer, they treat the whole family. They are devoted to treating indigent people, no one is turned away. They are able to use the funding from the City to maintain a counselor at the high school for one day a week. They can offer services on site, access to treatment. They are asking for more to expand to two days per week. Ms. Everson asked if they are seeing a growth over last year in Ashland. Ms. Marsh responded they are seeing an increase in families contacting them for help. Minor in possession (MIP) has increased. Juvenile offenses show a 400/0 increases in Ashland in MIP over prior year. Ms. Everson asked if it could be an enforcement issue. Ms. Marsh responded it could be a combination of factors. The cost of having one person at the high school one day per week is $6,000 per year. Community Works-Dunn House- Arnie Green, Anna Demato. This is the 30th year in the community and the only shelter for battered women and children. They serve 350 per year and the maximum stay is 30 days. They provide crisis counseling, advocating, food, transportation, children's programs, safety planning. Ms. Hardesty asked if they provide a safety net for after the 30 days. They work with them to provide rental assistance for 2 months and are working on longer term housing. They work with other shelters as well. Ms. Hartzell asked what the demand was in Ashland. 80/0 of the clients are from Ashland and it is lower than in previous years. They turned away 200 women and children last year and rate the need on the level of danger the women and children are. If they have to turn them away, they work with other shelters and local hotels to help. -'1 SOCIAL SERVICE GRANT PRESENA TIONS MARCH 5 AND 7, 2007- PAGE 3 OF 7 Sexual Assault Victims Services- This is the 35th year of the program. They are with the victim at the exam after assault. They provide clothes to leave hospital, take calls from victims that have been assaulted in the past. They follow up with victims by accompanying them to court or appointments, and work with family and friends. The funding request is for volunteer coordination. There are15-20 volunteers. The Committee discussed how they work with the Jackson county sexual assault team to respond to all hospital calls. There is a difference between programs. SA VS are the advocates. Parent Education- They provide classes to parents throughout valley and provide weekly classes at the Dunn House. There is no transportation to the classes in Medford and the cost of the program is $30,000. Youth and Family Counseling- This program is for young people who are not eligible for insurance. It helps to fund a part time case manager at the high school and a part time counselor 2 days per week. They provide basic mental health services. People are referred by teachers and counselors. They provide mental health work. The drop out rates in Ashland are very low and there are more alternative programs than the rest of valley. It was funded last year by billing the families if they were able to pay and by Ashland High School. Helpline- This is the 30-35th year of the program. Totally run by 40-50 volunteers. They receive 14,000-17,000 calls per year. United Way proposed a phone number in congress as 211 and it passed after Katrina due to 911 being flooded with calls. 211 would be alternative as an information referral line. It has not been implemented yet. Funding would help create 211 as a non crisis line. The volume from Ashland is not able to be determined and they increase their request each year based on the cost of living. Street Outreach- It is a $180-200,000 program now. They are trying to determine what do with the transients and are trying to remove the kids from the adults. The funding would buy .25 time outreach person to walk the streets, provide counseling and to buy subsidized housing for kids. There is not any funding source secured for Ashland and the funds requested would only be for Ashland. The Committee suggested partnering with the Chamber of Commerce. The transitional housing could be anywhere that they could find housing. The program pays 800/0 upfront for the housing for the individual and eventually goes down to 500/0, and the individual can be in the program 18 months. Help Now- Larry Kahn. They provide non legal advocacy to clients. Help to find doctors, surgeons, other agencies if they are not equipped to. They are asking for help to measure and deliver growth program to raise awareness in the community. They work with Legal Services using cross referrals and have not had to turn anyone away. They have a list of partners that they work with. The are working on establishing a database of providers. Winterspring- Christine Hunter, They provide grief services for adults, teens and children and a children's program for grief facilitation. They provide teen services at Ashland middle school and high school. They are asked to go into schools to provide grief support by nurses and counselors. They are trying to put a grief support program in at the high school. Current programs reached 134 children, and they are aiming to reach the same number. They were funded by the City of Medford, United Way, and community donations previously. They are now targeting more in Ashland. Mr. Heimann asked if they had any plans for large scale grief in schools. Ms. Hunter responded that they currently work with teachers and counselors on crisis situations and would work with staff to provide materials and resources. -rUT SOCIAL SERVICE GRANT PRESENATIONS MARCH 5 AND 7, 2007- PAGE 4 OF 7 SMART - Julie Brimble. This program is part of a statewide organization. It is in Helman and Walker in Ashland. Volunteers read to children for one hour to two children per week. There are over 70 children served in Ashland. It is one of the top five literacy programs in the country. There are 61 volunteers in Ashland and children are referred by the teachers. They are not funded through the state, mostly by large organizations like US Bank. They are asking for funding to pay the coordinators at the schools for 30 hours per week. Break until 8:45. SOCSTC- Leslie Curren. They have been a program for 35 years. The main facility is in Ashland. They offer day treatment and an outpatient program for children and families that do not have insurance for mental health service. They have served 21 Ashland clients to date. They are referred through schools and Jackson county health and human services. They hope to get funding through the state. Ms. Hartzell asked if there was overlap between other programs. The day treatment is for kids with Oregon Health Plan only and there is an age limit up to 18. Age 2 to 18 have to come to the agency or they can do home visits. They mostly come to the office. There are 3 high school age and most are elementary and middle school. Habitat for Humanity- Denise James. They build houses for low income people and will build two houses in Ashland on Garfield Street that can house up to 11 people. The land on Garfield will remain with the land trust and the houses must remain affordable houses. The families will pay a small lease payment for the land and the houses will be sold for cost of construction to the family. They have a staff of three people, 200 volunteers. The new home owners commit 500 hours of work toward the house. They built one house in Ashland in 1997. Mr. Tuneberg pointed out they are only asked'for $11,000 for one year. Ms. Hartzell asked if it would work to give half for first and half for next. Ms. James responded that they have no plans for the next year and would only need the funds for the first year. Center for Non Profit Legal Services- Paul Pavich. The program has been in existence for 35 years and is the only licensed legal representation to indigent clients. The do not provide criminal defense and have had a 20 year partnership with Ashland. They have more cases than they can handle. They have identified five or six practice areas that are the most important for the community. Domestic relations, divorce law, housing, land tenant law, public benefits, health care benefits, immigration law, and consumer representation. They have a relationship with non legal organizations through their Attorneys recognizing agencies that may help each client. They have 15-20 volunteers. Children's Advocacy Center- Marlena Mich. Last year 790 children and families were seen through the center and received assistance. They represent children through forensic interviewing, grand jury, medical assessments, therapy, and follow up with support groups. All of the services are at no cost. There were 27 Ashland families served last year. Mr. Heimann asked if they had seen a rise in Ashland with the methamphetamine problem. Ms. Mich responded they have seen the increase everywhere. They receive a lot of funding from the community which allows them to not ask for more from Ashland. RV Manor- Foster Grand Parent -Becky Snyder. They have been in the Rogue Valley 32 years. Their program offers age 60 and above people to work with lower income seniors. A single family could earn $1,064 per month. Currently there are 7 foster grandparents in Ashland. She explained that they must receive a 100/0 local match to qualify for federal grants. These funds will provide 6 months for one foster grandparent. .----T 1 SOCIAL SERVICE GRANT PRESENA TIONS MARCH 5 AND 7, 2007- PAGE 5 OF 7 RSVP- Has been in the valley 31 years. This program is for age 55 and above. There is no stipend given only mileage reimbursement. There are 73 now in Ashland at 9 sites. 6,954 hours of service. The funds would provide mileage reimbursement to raise mileage to 20 cents per mile. 300/0 federal match required. Most valuable benefit is that the participants feel a contribution to community. Their mission is to match volunteers to meet community need. They have a waiting list now for medical transportation. Dialysis patients are not put on the waiting list, they are helped first. They have volunteer insurance through SEMA that covers volunteers. Mediation Works- Mary Miller. This is a nationally recognized victim offender program. Judges and probation officers refer youth to the program. There is four classes, each class 1.5 hours long over two weeks. They focus on what was their thinking when they committed crime. What they would do differently when they are faced with situation. 100/0 of people are from Ashland. Since Jan Jansen left, left need for Ashland. Access- Phillip Yates. They offer five programs. Four of them feed people, one teaches. They are the food share for emergency food distribution. They are the only food bank that works together to work with people all over state. In Ashland, there are 110 families, 2,500 individuals. They use surplus commodities, partner with local farmers, and pick up daily from 10-12 stores. One food box would feed a family of three for five to seven days. They can provide 6 pounds of food per dollar, if allocated more they would be able to route more toward Ashland. Jackson County Sexual Assault Respond Team- Judith Rosen, Susan Molar. They explained the silent violent epidemic in the country. All responding agencies work together as a team. Survivors receive care for free at local hospitals and unlimited follow up care. 84 served in 2006, in Ashland 15. Ashland residents increased seven times in a year. They are asking for funds to maintain services to reach out to survivors who do not seek help. This includes training police officers, responding with nurses, case coordination with agencies, training interagency, and doing outreach. There is no emergency room bill at now. They pay the nurses. Bear Hugs- Kay Vander. This organization gives the gift of kindness and compassion. They give bears to each patient to comfort and nurture. They honor the sacredness of all life. This is a newly formed organization and the goal is to go to Ashland Community Hospital in emergency rooms and expand to RVMC. They promote the loved unconditionally message. The funds would be used for more bears to give. They worked with the Children's Advocacy Center but have not partnered with the sheriffs department yet. ICCA- Sharon Shreiber. This is the 28th year in Ashland. They help 60-80 people per day. 800/0 have an address in Ashland or say they are Ashland residents. Others are off 1-5. They provide showers, bathrooms, laundry facilities, provide food pack, gasoline vouchers, and advocacy. They have 20 volunteers and are open 9-3 Monday through Friday. There is 2.5 staff and the donations they receive are only 500/0 of their budget. They missed one audit and are doing it now due to contracting with the VA and a hold up through that. CASA, no one to present. Trinity Respite- Elizabeth Hallett. She spoke to cutbacks in funding. They provide caregiver services, respite care. Sometimes elder abuse or senior suicide occurs. Can provide professional support for care needed for loved ones. The advisory board makes the policy decisions. There is no facilities for emergency relief, it is only a day program, but if there is an emergency, they will network and provide connections. Ms. Hartzell asked what the cost was of T1 SOCIAL SERVICE GRANT PRESENATIONS MARCH 5 AND 7, 2007- PAGE 6 OF 7 the respite letter. Ms. Hallett responded $600 to put out and mail. Ashland residents makeup 20 out of 25. SOASTC- Bob Lieberman. This organization was established in 1977. They offer two units, community services, foster care, school based mental health project, family respite and support project, and crisis support. They treat families raising children with mental illness. Respite program allows family to choose who will provide care. The family support is based on individualized plan. Their management letter shows no internal control questions. 1000/0 improvement for FY 2006 from the auditor. The reach usually 4-5 families from Ashland. The Committee discussed if CASA should be allowed to present if they were to ask. It was determined that only if there was an emergency that night that did not allow them to present, then they would be allowed to. This meeting will be continued on March 7, 2007. ALLOCATIONS Mr. Tuneberg explained the process of the work session. The Committee would come to a consensus of allocation and move forward their proposal to the full budget committee for approval in the budget. Ms. Hartzell emphasized that she places a high priority on urgent care, safety net services. The Committee discussed their proposed allocations and came to a consensus. See attached. The Committee discussed in greater depth some of the organization proposals as listed below. Bear Hugs- The Committee though they were not well enough established and not a safety net service. Access-The Committee discussed that food is a high priority on safety net service. Mayor Morrison stated he likes to grant more toward smaller organizations and children organizations. RV Manor- The Committee discussed that this benefits lower income retired people and the people that are volunteering, it is a double benefit, and it helps volunteering seniors live longer. Mayor Morrison does not see as strong of a safety net service. Center for Non Profit Legal Services- The Committee discussed it as an essential service. Habitat for Humanity- The Committee discussed that this program did not fit into the priorities of the grant. It was thought that the program would fit better in the Economic and Cultural Development process. Staff will send them an application and encourage them to talk to Brandon Goldman, the City's Housing Program Specialist. Community Works- Ms. Everson offered a suggestion to allocate the same amount as in the last cycle to all of the programs, except not allocate to the Youth and Family Counseling but instead to the Street Outreach Program. The Committee felt it was more critical to have the Street Outreach Program. The Committee discussed all of the programs and came to a consensus on the funding. Ms. Everson encouraged the Chamber of Commerce to work with the Street Outreach Program. TT SOCIAL SERVICE GRANT PRESENA TIONS MARCH 5 AND 7, 2007- PAGE 7 OF 7 SODA- Ms. Hartzell did not feel it was a direct service and her interest is in treatment. Ms. Everson added they are only prevention, and they struggle with resources. Dental Clinic-The Committee discussed that it is critical what they do. Planned Parenthood- Ms. Hardesty though it was a marvelous program. Ontrack- The Committee discussed the treatment they provide is critical. Winterspring- Ms. Everson spoke that establishing long scale grief counseling is important. SMART - Ms. Everson thought it was a very important program but does not see it as safety net service. Ms. Hartzell agreed. Mayor Morrison spoke that teaching kids to reads changes lives. Trinity Respite Care- Mr. Heimann thought it provided a good service. Ms. Hardesty agreed. Everson/Morrison ms to approve the proposed allocations as presented. All ayes. Ms. Hartzell amended the motion to move money from SMART to Non Profit Legal Services. Ms. Hardesty suggested moving to the Street Outreach Program. Ms. Everson suggested moving it to ICCA. Ms. Hartzell accepted. Morrison opposed. All else yes. $1,000 moved to ICCA. All ayes to amended allocation. Staff will provide E & C application to SMART and Habitat for Humanity. ADJOURNMENT The meeting was adjourned at 8:48 pm. Respectfully Submitted, Bryn Morrison Account Representative -T T Proposal for Implementation of Resolution 86-35 Submitted by Cate Hartzell November 12, 2008 I've participated on Budget subcommittees to allocate City funds for social safety net services since 1995 and participated on the 1999-2000 Social & Human Services Ad Hoc Committee to define the City's role and philosophy in providing social services. I think staff s initiative to clarify the process is a great opportunity to accomplish the following objectives: · Clarify the desired outcomes and priorities of safety net services; . Ensure the reliability of the core safety net services by providing stable funding to prioritized servIces; · Reduce the amount of time that City staff spends on this process; . Increase the effectiveness of citizen participation in the allocation of funds. Over the years, there have been various attempts to improve the process. By using a self-selected tubcommittee of the Budget Committee to review proposals, we're asking people, some with no familiarity with the profession, to make decisions that in many venues are basic and straightforward. The subcommittee members change each of the two years it meets. Our current process doesn't take advantage of the local expertise of people who are familiar with the world of safety net and social services. This proposal seeks to make the investment of the City and the organizations more effective. The work of the Ad Hoc Committee, while not implemented was the result of a collective effort of service providers and citizens. I talked recently with Dee Anne Everson of United Way and to Peg Crawley of the Community Health Center to get their sense of how to increase the effectiveness of Ashland's investment. The details of this proposal grew from my discussion with Ms. Crawley and her years of experience providing essential services. The proposal is that the City Council develops a better, long-term process over the next year and that it conducts a simple interim process this year only. Interim Process 1. Review the 2008-2009 grantees to assess whether they are meeting goals and whether they are going to exist next year. Invite grantees to meet as one group to discuss how the City of Ashland grants can be used effectively to address the need. 2. Consider whether the funds from ICCA can be utilized to provide basic services (mail, phone for service referral) for homeless. 3. Determine that the current recipients,that are meeting goals receive the amount they were allocated in 2007 with any adjustment to inflation and funds left unspent. Recommend these allocation levels to the City Councilor Budget Committee for the 2009-2010 budget cycle. 4. Notify grantees that the City would like to receive a copy of their business and strategic plan within the next six months for review. Long term process 1. Establish a Public Health and Safety Commission comprised of people who are familiar with safety net service needs and the organizations designed to address those needs. The Commission meets once or twice annually with a charge to: a. Itemize the services needed to address the specific needs in Ashland; .-----11 b. Establish priorities for those services; c. Designate funding amounts to address each of those priorities; d. Identify criteria to be used in the selection of organizations to address the priorities; e. Serve as the body that makes recommendations to the City Councilor Budget Committee for the allocation of the funds on intervals determined by City Council; (see 2. below) f. Convene annually to meet with the funded organizations to talk about the needs, metrics, outcomes, lessons learned, review organizations' business and strategic plans; g. Participate, as appropriate in existing county groups focused on safety net service funding; h. Explore the potential for generating additional funds for use under Resolution 86-35, including establishing an endowment fund to generate additional resources to support the safety net services. 2. Establish an RFQ process under which organizations present their qualifications for addressing the established priorities under a 4- or 5-year arrangement. If there are multiple proposals for a service, utilize an RFP process. (See "e" above.) Benefits of this proposal: . It reduces the frequency of organizations' investment of resources to write and present applications from every two to every 4 or 5 years; . It reduces the staff time needed to process applications and administer these funds; . It increases the funding stability for organizations that have a history of providing these services at the local and county level, while providing a way for periodic review; and change if needed; . It addresses the need for clarity over the intent of the funds by establishing priorities; . It establishes a City entity with expertise and continuity to review the use of these funds; .. It creates the potential to supplement the City's funds for this purpose; . It allows us to put this in place without interrupting or spending considerable time determining next year's allocation. :1 Council Communication Title: Report on Health and Human Services Plan Dept: Finance Department Date: May 7, 2002 Submitted By: Lee Tuneberg, Finance Director Reviewed By: Greg Scoles, City Administrator Synopsis: Attached is a report on the current city activities relating to the Health (Social) and Human Services Plan adopted by Council and included within the Strategic Plan Goals. Recommendation: Staff recommends. acceptance of this report and consideration of additional steps via a future study session including affected departments and interested parties. Fiscal Impact: No immediate impact on the budget. Background: The Social & Human Services ad hoc committee was established in October 1999 to define the city's role and philosophy in providing social services to the community and to develop a funding plan. The committee met through November 2000 and the resultant plan is attached with a report of current activities that relate to elements of the plan and funding. MEMO TO: Greg Scoles, City Administrator FROM: Lee Tuneberg, Finance Director DATE: May 7,2002 RE: Report on Ashland Strategic Plan - Social and Human Services Element The current Strategic Plan includes the following goal: Implement and fund the Health and Human Services Plan The Health and Human Services Plan Mission Statement: To ensure that all people in Ashland live in a safe, strong, and caring community, the City of Ashland seeks to enhance the quality of life and promote the selfreliance, growth, and development of people. To these ends, the City of Ashland will strive to provide resources and services to meet basic human needs. This report is intended to provide an overview of city activities that reasonably could be construed as elements of this plan, its endeavor to provide resources and services to meet basic human needs, and communicate them to Council for further consideration and direction. The plan identifies a safe and healthy community as Gentral to the mission. The city is charged with promoting the general welfare via an established safety net that addresses chemical dependency, a safe -------r T environment, available and affordable health services, effective and responsible emergency assistance, family development, and equal access to justice. The city's role is: . facilitating a safe and healthy community by providing leadership, . enacting responsible public policy, . encouraging effective, collaborative efforts and . establishing and funding clear priorities. The plan includes three goals: 1. Provide a comprehensive and coordinated system of services to address people in need. 2. Ensure that the allocation of program funding is fair, objective and consistent. 3. Ensure that funded programs directly address changing priorities and are administered in an effective and cost-efficient manner. Current city efforts are significant yet only touch upon the above goals and their respective elements. Relevant city activities thought to fall under this program's umbrella and related policy numbers are: A. Maintaining this plan and significant elements as continued elements of the city's strategic plan and inclusion within the annual budget process. (most all elements) B. Allocate CDBG funds toward priority projects including affordable housing. (1-4, 2-2) C. Social service grants funding 20+ agencies for total of$100,000 each year.(1-1, 2-1, 2-3) D. Assistance programs helping seniors, low income and or disadvantaged customers pay utility bills. (2-3) E. Senior program supporting needs of the growing population. (1-3) F. Living wage initiative affecting contracted work in Ashland. (2-1) G. AFN discounted services for community cable services. (1-3, 1-4) As can be seen, these activities and their potential areas of inclusion are not comprehensive when considering the breadth of the elements of the plan. Elements not addressed to date are high-lighted below. It should be noted that element 2-2, allocating 15% ofCDBG funds, has been deferred in light of the priority goal of developing affordable housing through a limited number of programs with that money instead. The current CDBG process calls for 750/0 to go to one or two projects, 5% to municipal building accessibility and 200/0 to administration. PROVIDE A COMPREHENSIVE AND COORDINATED SYSTEM OF SERVICES TO ADDRESS PEOPLE IN NEED POLICIES: I-T (1-1) Identify opportunities to achieve a broad spectrum of integrated community services that provides for all residents by helping eliminate identified barriers associated with collaboration such as liability insurance, ways to mitigate obstacles to information exchange among agencies, ways to overcome "turfdom" and fears of budget invasion and the creation of a streamlined, performance based contracting system that rapidly identifies changes in the community and responds with innovative proj ects. (1-2) Create a consistent database of information on local service needs, successful program solutions to human and social service problems, and sources of funding for human and social service programs. (1-3) Assist older Ashlanders, through the Senior Program, in achieving an opportunity for employment free from discriminatory practices because of age; suitable housing; an appropriate level of physical and mental health services; ready access to effective social services; appropriate institutional care when required; information about available supportive services; and supportive services which enable elderly persons to remain in their homes. (1-4) Ensure that the needs of low income individuals are considered in the planning for public housing, community services, and fees for development. (1-5) Identify opportunities to develop creative partnerships with service organizations that could include technical assistance, staff development, co-sponsorship of programs and development of new revenue sources. (1-6) Playa leadership role in the creation of a "City of Ashland Operating Foundation for a Safe and Healthy Community." ENSURE THAT THE ALLOCATION OF PROGRAM FUNDING IS FAIR" OBJECTIVE AND CONSISTENT. POLICIES: (2-1) Allocate public resources, from within the City's general fund, in an amount set by resolution, for the direct support of essential safety net services. In recognition of the reality that the costs associated with the provision of essential safety net services increase on an annual basis, give due consideration in the City's budget process to matters pertaining to inflation indexes, environmental factors which may contribute to increased demand for services, and compensation rates (livable wages) paid to social service employees. (2-2) Allocate, as permissible by the CDBG Block Grant process, on an annual basis, fifteen percent (150/0) of categorical CDBG resources for the direct support of qualifying safety net services. (2-3) Expend through the City's budget process, resources allocated from the City's General Fund and the proportional share of CDBG funds, in the charitable, private not-for-profit sector for the provision of safety net services such as: a) Temporary, emergency food and shelter; b) Substance abuse education, prevention and treatment; --- ---------d--'Tl c) The preservation of dignity and equal access to justice; d) Primary and preventive health care services; e) Critical supportive services for families, seniors and victims. ENSURE THAT FUNDED PROGRAMS DIRECTLY ADDRESS CHANGING PRIORITIES AND ARE ADMINISTERED IN AN EFFECTIVE AND COST-EFFICIENT MANNER POLICIES: (3-1) Ensure that the City consults with local agency officials in the design, delivery and evaluation of services, by establishing an Ad Hoc Human Services Task Force with its primary focus on working on the implementation of Policies 1-2, 3-2 and 3-3 and related human services planning and management Issues. (3-2) Develop and adopt techniques for analyzing and measuring the equity of outcomes and benefits of services delivery which can be integrated into planning, evaluation and budgeting components. Programs should be evaluated on the basis of well defined performance standards that relate to program administration and participant development, in addition to the basis of numbers served or placed. (3-3) Develop a format for presentations to the Budget Committee, to be made every 3-4 years, which utilize the results of the monitoring framework outlined in Policy 3-2. Many of the tasks are currently dealt with by various committees, council liaisons and staff. Foremost is the work by the Housing Commission, Senior Board, Budget Committee and Council itself. The ad hoc committee last met in November 2000 and suggested alternative ways to fund this program (minutes attached). Several of the ideas generated relate to current operational and budgetary activities by the groups listed above. The high-lighted items speak to a different level of activity than employed today. Item 1-2 calls for a database and its management, 1-5 looks for partnerships between the city and service organizations, 1- 6 suggests creating a foundation and 3-1, 2, 3 identify and detail a management, tracking and reporting system. All of these elements are labor intensive and would have a direct impact on the city budget, and possibly on the availability of funds needed for said services. Considering the existing efforts and funding mechanisms by Council and sub-groups, the allocation or reallocation of resources to bolster current efforts or to address less active elements of the plan requires further direction from Council. Staff suggests Council accept this report and determine what steps to take next. -,T ASHLAND STRATEGIC PLAN SOCIAL AND HUMAN SERVICES ELEMENT Mission Statement To ensure that all people in Ashland live in a safe, strong, and caring community, the City of Ashland seeks to enhance the quality of life and promote the self-reliance, growth, and development of people. To these ends, the City of Ashland will strive to provide resources and services to meet basic human needs. Overview and Philosophy Central to the attainment of this mission are a series of commitments and strategies to ensure that the City of Ashland will be characterized as a safe and healthy community. We value a community in which citizens are free to grow, to be safe within their person and family, and to join forces in the collaborative caring for one another. The City of Ashland, as a government institution, is charged with promoting the general welfare. The status of the general welfare is severely diminished when there are those in the community who are ill with treatable conditions, but for the price of treatment, remain untreated; those who lack food and shelter, but for the price such necessities, who remain homeless and hungry. Every such circumstance diminishes the strength and functionality of the community, and erodes the ability of children to learn, of adults to work, parents to parent and seniors to remain independent. Critical first steps toward the attainment of a safe and healthy community reside in the creation and support of a collaborative community wide safety net. When one thinks of providing a safety net one thinks first of any critical, life-or-death needs which might be provided to a person to protect against undue suffering or an inhumane response from neighbors. Specifically, a safe and healthy community: . Offers its residents drug-free schools, workplaces, and community centers, while creating capacities for the prevention and treatment of chemical dependency; . Is characterized by citizens who are not afraid to venture from their homes at night, and parents who are assured that their children are safe from negative influences that promote crime, substance abuse, or violence; . Is characterized by the affordable and accessible presence of primary and preventative health care services which in turn support a healthy workforce and reduce adolescent pregnancies, infant mortality, disability, and the spread of communicable diseases; . Is one that provides an essential safety net of effective and responsible emergency assistance to those who are unable to feed or shelter their families and who are confronted with situations they cannot alleviate by themselves; . Supports the development of families through such programs as parenting education, affordable housing, quality childcare, crisis intervention, victims' assistance, and senior services; . Is one that affords justice, and equal access to justice, to each of its members in a continuous effort to break the cycle of poverty, stabilize and strengthen the ability of parents to care for their children, obtain safe and affordable housing, facilitate safe working conditions, defend against consumer fraud, and protect the frail and vulnerable from abuse. As the City of Ashland moves along a continuum which focuses on self-sufficiency, the tools for self- sufficiency must be included within the context of the community's safety net. There is no person who ------ IT will achieve true self-sufficiency if denied timely, continuous, and affordable access to needed treatments, interventions, advocacy, and skill-building. For these reasons, beneficiaries of the community's safety net hold ethical obligations for personal advancement along a progressive continuum toward self-sufficiency (unless otherwise constrained by disability or vulnerability). The Role of the City of Ashland The City of Ashland plays a strategic and pro-active role in facilitating a safe and healthy community by: Providing leadership in community forums in which safety, health, livability, and quality of life are discussed or debated. . Enacting a responsible public policy that: 1. Safeguards strategic partnerships with charitable providers of safety net services; 2. Remains mindful of potential negative or unintended outcomes; 3. Invites the counsel of community professionals who are actively involved in the delivery of safety net services when contemplating relevant public policy. . Encouraging true collaboration, rewarding a dedication to and focus on mission, and discouraging unnecessary duplication of service or effort; . Establishing clear definitions and priorities for safety net services and allocating public resources in accordance with those priorities; GOAL # 1: PROVIDE A COMPREHENSIVE AND COORDINATED SYSTEM OF SERVICES TO ADDRESS PEOPLE IN NEED POLICIES: (1-1) Identify opportunities to achieve a broad spectrum of integrated community services that provides for all residents by helping eliminate identified barriers associated with collaboration such as liability insurance, ways to mitigate obstacles to information exchange among agencies, ways to overcome "turfdom" and fears of budget invasion and the creation of a streamlined, performance based contracting system that rapidly identifies changes in the community and responds with innovative proj ects. (1-2) Create a consistent database of information on local service needs, successful program solutions to human and social service problems, and sources of funding for human and social service programs. (1-3) Assist older Ashlanders, through the Senior Program, in achieving an opportunity for employment free from discriminatory practices because of age; suitable housing; an appropriate level of physical and mental health services; ready access to effective social services; appropriate institutional care when required; information about available supportive services; and supportive services which enable elderly persons to remain in their homes. (1-4) Ensure that the needs of low income individuals are considered in the planning for public housing, community services, and fees for development. ---~---------r-I (1-5) Identify opportunities to develop creative partnerships with service organizations that could include technical assistance, staff development, co-sponsorship of programs and development of new revenue sources. (1-6) Playa leadership role in the creation ofa "City of Ashland Operating Foundation for a Safe and Healthy Community." GOAL # 2: ENSURE THAT THE ALLOCATION OF PROGRAM FUNDING IS FAIR.. OBJECTIVE AND CONSISTENT. POLICIES: (2-1) Allocate public resources, from within the City's general fund, in an amount set by resolution, for the direct support of essential safety net services. In recognition of the reality that the costs associated with the provision of essential safety net services increase on an annual basis, give due consideration in the City's budget process to matters pertaining to inflation indexes, environmental factors which may contribute to increased demand for services, and compensation rates (livable wages) paid to social service employees. (2-2) Allocate, as permissible by the CDBG Block Grant process, on an annual basis, fifteen percent (15%) of categorical CDBG resources for the direct support of qualifying safety net services. (2-3) Expend through the City's budget process, resources allocated from the City's General Fund and the proportional share of CDBG funds, in the charitable, private not-for-profit sector for the provision of safety net services such as: (A) Temporary, emergency food and shelter; (B) Substance abuse education, prevention and treatment; (C) The preservation of dignity and equal access to justice; (D) Primary and preventive health care services; (E) Critical supportive services for families, seniors and victims. GOAL #3: ENSURE THAT FUNDED PROGRAMS DIRECTLY ADDRESS CHANGING PRIORITIES AND ARE ADMINISTERED IN AN EFFECTIVE AND COST-EFFICIENT MANNER. POLICIES: (3-1) Ensure that the City consults with local agency officials in the design, delivery and evaluation of services, by establishing an Ad Hoc Human Services Task Force with its primary focus on working on the implementation of Policies 1-2, 3-2 and 3-3 and related human services planning and management Issues. TT (3-2) Develop and adopt techniques for analyzing and measuring the equity of outcomes and benefits of services delivery which can be integrated into planning, evaluation and budgeting components. Programs should be evaluated on the basis of well defined performance standards that relate to program administration and participant development, in addition to the basis of numbers served or placed. (3-3) Develop a format for presentations to the Budget Committee, to be made every 3-4 years, which utilize the results of the monitoring framework outlined in Policy 3-2. -------r--T m_