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Home My WebLink About2010 Annual Report ANNUAL REPORT CITY OF PORT TOWNSEND 0364 MCAG No. Submitted pursuant to RCW 43.09.230 to the STATE AUDITORS OFFICE FOR THE FISCAL YEAR ENDED DECEMBER,2010 TH Certified correct this 26day of May , 20 10, to the best of my knowledge and belief: GOVERNMENT INFORMATION: Official Mailing Address 250 Madison St., Suite 1, Port Townsend, WA 98368 Official Web Site Address cityofpt.us PREPARER INFORMATION and CERTIFICATION: Preparer Name and Title Corena M Stern, Deputy Finance Director Contact Phone Number 360-379-4406 Contact Fax Number 360-379-4440 Contact E-mail Address cstern@cityofpt.us Signature Corena M Stern City of Port Townsend Notes To The Financial Statements For the Year Ended December 31, 2010 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Port Townsend reports financial activity using the revenue and expenditure classifications, statements, and schedules contained in the Cash Basis Budgeting, Accounting and Reporting System (BARS) manual. This basis of accounting and reporting is another comprehensive basis of accounting (OCBOA) that is prescribed by the State Auditor’s Office under the authority of Washington State law, Chapter 43.09 RCW. The City of Port Townsend was incorporated on January 16, 1860, and operates under the laws of the State of Washington applicable to a non-charter code city. The city is a general purpose government and provides police and fire protection, water, sewer, storm drainage, as well as maintaining parks, streets, and a library for use by its citizens. The city uses single entry, cash basis accounting for its governmental and proprietary fund types , which is a departure from generally accepted accounting principles (GAAP). Prior to 2008, the proprietary (utility) funds were reported on accrual basis. Proprietary Funds are used to account for activities that are operated in a manner similar to private enterprise business. A.Fund Accounting The accounts of the city are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of single entry accounts that comprise its cash, investments, revenues and expenditures or expenses, as appropriate. The city's resources are allocated to and accounted for in individual funds depending on what they are to be spent for and how they are controlled. The following are the fund types used by the city: Governmental Fund Types .- are used to finance most governmental functions and account for and report expendable financial resources and related obligations. General Fund (Fund 010) (Current Expense Fund) This fund is the primary operating fund of the city. It accounts for all financial resources except those required to be accounted for in another fund. Special Revenue Funds (Funds in the 100 series) These funds account for revenues derived from specific taxes, grants, or other sources which are designed to finance particular activities of the city. 1 Debt Service Funds (Funds in the 200 series) These funds are used to gather resources to pay general government debt. Capital Projects Funds (Funds in the 300 series) These funds account for financial resources which are designated for the acquisition or construction of general government capital improvements. Proprietary Fund Types Enterprise Funds (Funds in the 400 series) These funds account for operations that provide goods or services to the general public and are supported primarily through user charges. Internal Service Funds (Funds in the 500 series) These funds account for operations that provide goods or services to other departments or funds of the city or other governmental units on a cost- reimbursement basis. Fiduciary Fund Types - Fiduciary funds account for assets held by the city in a trustee capacity or as an agent on behalf of others. Refundable Deposits (601) This fund accounts for deposits being held pending city criteria for builders being fulfilled. Pension (and Other Employee Benefit) Trust Funds (611-620) Firemen’s Pension Private Purpose Trust Funds (621-630) Funds used to report all trust arrangements under which principal and income benefit individual, private organization and other government. Agency Funds (Funds 631-699) This fund accounts for assets whereby the city acts as a pass through agent for various government entities. B.Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Revenues are recognized only when cash is received and expenditures are recognized when paid, including those properly chargeable against the prior year(s) budget appropriations as required by state law. 2 Purchases of capital assets are expensed during the year of acquisition. There is no capitalization of capital assets, nor allocation of depreciation expense. Inventory is expensed when purchased. The basis of accounting described above represents a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. C.Budgets and Budgetary Accounting Annual appropriated budgets are adopted for all funds at the fund level. The budgets constitute the legal authority for expenditures at that level. Annual appropriations for all funds lapse at year end. The city manager is authorized to transfer budgeted amounts between (department within and fund/object classes with departments); however, any revisions that alter the total expenditures of a fund, or that affect the number of authorized employee positions, salary ranges, hours, or other conditions of employment must be approved by the city council. The appropriated and actual expenditures for the legally adopted budgets were as follows: 2010 Final AppropriatedActual FundAmountExpendituresVariance General $ 6,785,664 $ 6,439,845 $ 345,819 Drug Enforcement & Educ Fund $ 2,400 $ 3,075 $ (675) Contingency $ 7,478 $ 7,458 $ 20 Street $ 759,189 $ 709,875 $ 49,314 Library $ 1,023,825 $ 1,018,940 $ 4,885 Public Work & Admin $ 1,118,065 $ 1,096,088 $ 21,977 Lodging Tax $ 373,910 $ 358,299 $ 15,611 Fire & EMS Service $ 1,244,671 $ 1,233,064 $ 11,607 CDBG $ 100,000 $ 12,858 $ 87,142 System Development Chrges $ 365,000 $ 42,718 $ 322,282 Community Services $ 1,414,235 $ 1,331,048 $ 83,187 GO Debt Service $ 1,000,392 $ 1,001,513 $ (1,121) Water/Sewer Utility $ 6,334,933 $ 5,525,913 $ 809,020 Stormwater $ 842,425 $ 564,149 $ 278,276 Utility Construction Fund $ 1,078,000 $ 174,278 $ 903,722 Trans line Replacement $ 541,442 $ 345,737 $ 195,705 1978 Water Sewer Rev Bond $ 23,000 $ 23,000 $ - 3 92 Water/Sewer Bond Redemption $ 607,500 $ 607,105 $ 395 Equipment Rental $ 944,461 $ 961,536 $ (17,075) Firemen's Pension $ 105,012 $ 70,196 $ 34,816 Memorial Fund $ 3,000 $ 6,815 $ (3,815) Golf Course Fund $ 23,300 $ 17,643 $ 5,657 Maritime Center Fund $ 136,500 $ - $ 136,500 $ 11,582,087 Capital Improvement $ 7,004,399 $ 4,577,688 $ 36,416,489 $ 28,555,553 $ 7,860,936 D.Assets, Liabilities and Equities Cash and Equivalents It is the city's policy to invest all temporary cash surpluses. The amounts are included in the net cash and investments shown on the statements of fund resources and uses arising from cash transactions. The interest on these investments is prorated to the various funds. The average compensating balances maintained during 2010 were approximately $582.12. The city's deposits are entirely covered by federal depository insurance (FDIC and FSLIC) or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commission (PDPC). Investments See Note 3. Capital Assets Capital assets are long-lived assets of the city and are recorded as expenditures when purchased. Compensated Absences Vacation pay, which may be accumulated up to 6 weeks, is payable upon resignation, retirement or death. Sick leave may be accumulated up to 1440 hours. . Long-Term Debt See Note 5 Other Financing Sources Or Uses The city’s “Other Financing Sources or Uses” consist of Operating transfers-in, Operating transfers-out, Special assessment bond proceeds, Proceeds from refunding bonds, and Capital leases. Risk Management See Note 8. 4 NOTE 2 - COMPLIANCE AND ACCOUNTABILITY There have been no material violations of finance-related legal or contractual provisions. During 2010 the Equipment Rental & Repair Fund (500) was overexpended by $17,075, on a budget of $961,535. Fuel costs and repair parts were above the adopted budgeted amounts. The GO Debt Service Fund (200) was overexpended by $1,121, due to higher than anticipated professional services costs from the Bank of New York. Originally $1,000 was budgeted, $1,816 was paid. The Drug Enforcement Fund (101) was overexpended by $675 for surveillance equipment. Transfers from the Memorial Fund to the Capital Fund were submitted over the adopted budget by $3,815. The Fire and EMS Fund (171) ended the year in a negative cash position, due to property tax collections lagging behind budgeted figures. NOTE 3 - INVESTMENTS The city’s investments are either insured, registered, or held by the city or its agent in the city’s name. As required by state law, all investments of the city's funds are obligations of the U S Government, the State Treasurer's Investment Pool, or deposits with Washington State banks and savings and loan institutions. Investments by type at December 31, 2010 are as follows: Investments CarryingMarket value Amount Washington State Treasurer’s Investment Pool $12,653,981.23$12,653,981.23 US Bank Savings Account $577.64$577.64 2010 Total Investments $12,654,558.87$12,654,558.87 5 NOTE 4 - PROPERTY TAXES The Jefferson County Treasurer acts as agent to collect property taxes levied in the county for all taxing authorities. Collections are distributed after the total collected surpasses $10,000; with any balance left over distributed at month-end. Property tax revenues are recognized when cash is collected. Delinquent taxes are considered fully collectible because a lien affixes to the property when taxes are levied. The city's regular levy for 2010 was $1.37245 per $1,000.00 on an assessed valuation of $1,455,136,315 for a total regular levy of $1,997,101.84. In 2010 the city also had a special levy for Emergency Medical Services (EMS). The EMS levy rate was $ .27963 per $1,000 for a total levy of $406,899.77. In 2008 the voters approved a Library LID lift to be phased in over 2009- 2011. For 2010 the library levy was .50955 per 1,000 for a total of $741,464.71 NOTE 5 - LONG-TERM DEBT The accompanying Schedule of Long-term Debt (09) provides a listing of the outstanding debt of the city. A. BONDS The City of Port Townsend issues general obligation and revenue bonds to finance the construction and remodel of capital assets. Bonded indebtedness has also been entered into to advance refund revenue bonds. General obligation bonds have been issued for both general government and business-type activities and are being repaid from the applicable resources. The revenue bonds are being repaid by proprietary fund revenues. In 2008 the City issued $7,500,000 in bonds to finance road and sidewalk improvements, as well as tourism, infrastructure, and waterfront access improvements. In 2010 the City issued an additional $3,740,000 in Bonds for sidewalks and utilities and street improvements, as well funding for the Way Finding project and library expansion. 6 General obligation bonds currently outstanding are as follows: OriginalInterest PurposeMaturiDebt IssueIssueRate yOutstanding Date Date Limited GO Bonds for reconstruction 6.4 – 5.45% 1991of the Balloon Hanger at Ft.Worden $535,000 2011 $17,452 for performing arts. Limited GO Bonds for Fire & Library 1999 repairs from interfund loans;city $645,000 5.0 – 6.0% 2016 $285,000 facilities, Marine Science Ctr and Police Station. 2002Limited GO Bonds for construction of $3,465,000 1.95–2022$2,765,000 City Hall Annex and old City Hall. 4.70% 2003 Limited GO Bonds for Skateboard Park, the Wave Viewing Gallery, City $2,390,000 $1,865,000 1.85-4.60%2023 Hall, Fire Station, Pool & Pink House Lease settlement. 2005Limited GO Bonds for construction funds for City Hall Annex and Old $1,545,000 3.05- 4.35% 2025$1,405,000 City Hall 2008Limited GO Bonds for construction $7,500,000 4.15 -5.00% 2038$7,500,000 funds for Civic and Street Improvements 2010 Limited Go Bonds for Street, $3,740,000 2.30-5.00%2030 $3,740,000 Sidewalk, Utilities and the Historic District 7 TOTAL$17,577,452 The annual debt service requirements to maturity for general obligation debt, including the current reporting year is as follows: Govermental Activities Year ending Principal Interest December 31 2010$370,024 $629,367 2011 $392,951 $773,632 2012 $395,500 $768,208 2013 $390,000 $753,221 2014 $410,000 $737,196 2015-2019 $3,105,000 $3,385,659 2020-2024 $4,100,000 $2,633,196 2025-2029 $3,650,000 $1,722,273 2030-2034 $2,785,000 $950,475 2035-2038 $2,390,000 $305,750 $17,988,475 $12,658,977 Total 8 As of December 31, 2010 the long term debt payable from proprietary fund resources consisted of the following: Original Issue Interest PurposeMaturityDebt IssueRate Date Outstanding Date 5% 1978Water/Sewer Revenue Bonds $395,000 2018 $ 145,000 Water and Sewer Improvements Water/Sewer Revenue Bonds 1998Refunding 1992 issue Sewer $5,950,0002011$ 440,000 4.10-4.65% Treatment Plant, refunded 1978 Series B Bonds TOTAL$ 585,000 Debt service requirements to maturity for proprietary funds, including the current reporting year: Business Type Activities 9 Year ending Principal Interest December 31 2010$842,133 $82,208 2011$722,748 $53,150 2012 $283,372 $29,663 2013 $284,006 $26,626 2014 $289,649 $23,580 2015-2019 $1,393,519 $68,114 2020-2024 $555,034 $13,024 Total $4,370,461 $296,365 B.Public Works Trust Fund Loans and State Revolving Fund Loans State of Washington Public Works Trust Fund (PWTF) Loans are an intergovernmental loan from the Public Works Board to undertake local public works projects. These loans are a direct responsibility of the City of Port Townsend. The City currently has five such loans. State Revolving Fund (SRF) Loans are State of Washington Department of Ecology low interest loans for projects that protect and improve water quality. The City of Port Townsend currently has one SRF loan. As of December 31, 2010 the long-term debt payable for PWTF and SRF loans consisted of the following: 10 OriginalInterest PurposeMaturityDebt IssueIssueRate DateOutstanding Date PWTF Loan 1998CT Pipeline $2,172,055 1% Tri-Area Water Storage 2018 $357,744 Tri-Area Well upgrades (payoff of $1,186,718 with sale of Tri-Area assets) 1999PWTF Loan 1% $1,434,365 2019 $536,353 Gaines St Lift Station San Juan Sewer Trunk Line PWTF Loan Wastewater Treatment 2001 Outfall Expansion $1,153,350 .5% 2021 $608,042 Trunk Sewer Line replacement PWTF Loan 2002 Morgan Hill Water System $1,242,742 .5% 2022 $800,423 Improvements SRF Loan 2002 Wastewater Conveyance $856,803 1.5% 2024 $640,768 Storm and sewer separation Gaines St Lift Station Phase 2 Trunk Sewer Replace 2003 PWTF Loan $90,000 0% 2009 $41,000 Transportation Planning TOTAL $2,984,330 C. ADVANCED REFUNDING AND DEFEASED BONDS In 1998 the City of Port Townsend refunded two prior revenue bond issues while issuing an 11 additional $1,000,000 of debt. This 1998 Revenue Bond issue was partially defeased in 2002 due to the sale of some associated asset improvements in the Tri-Area. The 1978 “series B” revenue bonds were refunded in the amount of $115,000 and the 1992 Revenue Bonds were refunded in the amount of $4,835,000 in the 1998 Bond issue. As part of the Tri-Area well and reservoir assets sold in 2002, $1,490,000 in bonds were defeased. NOTE 6 - PENSION PLANS Substantially all city full-time and qualifying part-time employees participated in Public Employees’ Retirement System (PERS), Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Volunteer Firemen Relief and Pension Fund, Firemen’s Pension and Relief Fund administered by the Department of Retirement Systems, under cost-sharing multi- employer defined benefit and defined contribution employee retirement plans. Actuarial information in on a system-wide basis and is not considered pertinent to the city’s financial statements. Contributions to the systems by both employee and employer are based upon gross wages covered by the plan. Historical trends or other information regarding each plan is presented in the state Department of Retirement Systems 2010 annual financial report. A copy of this report may be obtained at: Department of Retirement Systems Communication Unit PO Box 48380 Olympia, WA 98504-8380 NOTE 7 - RISK MANAGEMENT The City of Port Townsend is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-insuring, and/or jointly contracting for risk management services. WCIA has a total of 145 members. New members initially contract for a three year term, and thereafter automatically renew on an annual basis. A one year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage is written on an occurrence basis, without deductibles. Coverage includes 12 general, automobile, police, public officials’ errors and omissions, stop gap, and employee benefits liability. Limits are $4 million per occurrence self insured layer, $16 million per occurrence in the re-insured excess layer. The excess layer is insured by the purchase of reinsurance and insurance ans is subject to aggregate limits. Total limits are $20 million per occurrence subject to aggregate sublimits in the excess layers. The Board of directors determines the limits and terms of coverage annually. Insurance coverage for property, automobile physical damage, fidelity , inland marine, and boiler and machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical damage coverage are self funded up to $500,000, for all perils other than flood and earthquake, and insured above that amount by the purchase of insurance. In-house services include risk management consultation, loss control field services, claims and litigation administration, and loss analysis. WCIA contracts for the claims investigation consultants for personnel issues and land use problems, insurance brokerage, and lobbyist services. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall. An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets in financial instruments that comply with all State guidelines. These revenues directly offset portions of the membership’s annual assessment. WCIA is governed by a Board of Directors which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of WCIA. NOTE 8 - RESTRICTED FUNDS In accordance with bond ordinances and certain related agreements, separate restricted funds are required to be established. The assets held in these funds are restricted for specific uses, including construction, debt service, and other special reserve requirements. NOTE 9 - UTILITY RECEIVABLES All delinquent accounts receivable must receive prior City Council approval before they are written off. 13 NOTE 10 - CONTINGENCIES AND LITIGATION In the opinion of management the city’s self-insurance reserves are adequate to pay all known or pending claims. (See Note 7.) NOTE 11 – INTERFUND LOANS During 2010, the City of Port Townsend issued another interfund loan for property purchase to act as mitigation for wetland disturbance during the Howard Street project. No principal or interest payments were made during 2010 on any of the loans as the City anticipated paying off the loans as part of a 2010 Bond issue. Due to a legal technicality in the bond issuing documents, the city was not able to use the bond proceeds to payoff the interfund loans. The following table displays interfund loan activity during 2010: BorrowingLendingBalanceNew2010Balance FundFund1/1/2010LoansRepayments12/31/2010 010 500 $ 75,000 $ - $ 75,000 010 417 $325,000 $ - $ 325,000 199 417 $ 83,508 $ - $ 83,508 199 417 $185,571 $ - $ 185,571 305 417 $ 48,097 $ 48,097 NOTE 12 – NEW PUBLIC ENTITY FORMED On September 08, 2009 the City of Port Townsend authorized the creation of a public corporation known as the Port Townsend Public Development Authority. A charter and bylaws were adopted for the entity, but no other activity took place in 2009. For 2010, the PDA incurred $10,451 in expenses. Most of the money spent was for a contract consultant and an internet campaign for the historic customs house. These expenses were part of the General Fund. The PDA received a $5,000 award from 14 a private, non-profit membership organization – National Trust for Historic Preservation. As there was no other income for the PDA to offset expenses, the city manager is working with the PDA to reimburse the city for the balance of these start-up costs. The PDA was created to improve the effectiveness of preserving historic assets, development, redevelopment and preservation of affordable housing, public assets, and public places of special quality for the purposes of maintaining commons for the public interest. NOTE 13 – PRIOR YEAR CORRECTION Cash and Investments for the Water and Sewer Fund at the end of 2009 were overstated by $39,219 and required a prior year correction to the Financials. Interest earnings on a securities investment were booked incorrectly. The original purchase price of $1,068,907 included accrued interest. NOTE 14 – EQUIPMENT RENTAL FUND ALLOCATION In light of the economic downturn, the city suspended ER&R contributions for most of the general fund, and is evaluating the funding policies for equipment replacement. 15 MCAG NO.0364STATEMENT C-4 CITY OF PORT TOWNSEND Page 1 of 5 FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2010 Total for 010101102 BARS 1/ All Funds General FundDrug EnforceContingency CODE Total Amount Actual AmountActual AmountActual Amount Beginning Cash and Investments: $11,428,185$915$2,541$98,885 2/ Reserved$0 308.10 2/ Unreserved$11,428,185$915$2,541$98,885 308.80 388.80 or 588.80 Prior Period Adjustments($39,220)$0 Revenues and Other Sources: 310Taxes$8,068,3584,342,97109,794 320Licenses and Permits$281,171259,77300 330Intergovernmental$4,630,370169,38900 340Charges for Goods and Services$7,433,4231,573,00900 350Fines and Penalties$120,459106,30400 360Miscellaneous$333,09328,39541,002158 370Capital Contributions$225000 390Other Financing Sources$5,786,386000 Total Revenues and Other Financing Sources $26,653,4866,479,84141,0029,952 Total Resources $38,042,4516,480,75643,543108,837 Operating Expenditures:$0 510General Government$2,516,4852,001,67207,458 520Public Safety$3,834,9792,598,8403,0750 530Physical Environment$5,489,905300 540Transportation$524,717000 550Economic Environment$1,136,443773,31700 0 560Mental and Physical Health$000 570Culture and Recreational$2,153,04419,22800 Total Operating Expenditures $15,655,5735,393,0603,0757,458 591-593Debt Service$1,119,057000 594-595Capital Outlay$7,268,07528,73600 Total Expenditures $24,042,7055,421,7963,0757,458 597-599Other Financing Uses$1,887,1421,017,86400 Total Expenditures and Other Financing Uses $25,929,8476,439,6603,0757,458 Excess (Deficit) of Resources Over Uses $12,112,60341,09640,468101,379 380Nonrevenues (Except 384)$200,0091900 580Nonexpenditures (Except 584)$915,77418500 Ending Cash and Investments: $11,396,83940,93040,468101,379 2 Reserved/$0 508.10 2/ Unreserved 508.80$12,104,546$40,930$40,468$101,379 This column should summarize ALL reported funds, not just funds listed on this page 1/ 2/ Disclosure of reserved/unreserved fund balances is optional The Accompanying Notes Are An Integral Part Of This Statement. MCAG NO.0364STATEMENT C-4 CITY OF PORT TOWNSEND Page 2 of 5 FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2010 120 110140150 BARS Library PW Adm & EngLodging Tax Street CODE Actual AmountActual AmountActual AmountActual Amount Beginning Cash and Investments: $2,360$54,336$11,763$29,163 2/ Reserved 308.10 2/ 308.80Unreserved$2,360$54,336$11,763$29,163 388.80 or 588.80 Prior Period Adjustments Revenues and Other Sources: 310Taxes496,505919,6610322,154 320Licenses and Permits618000 330Intergovernmental192,76469,36100 340Charges for Goods and Services21,31901,130,3920 350Fines and Penalties14,15500 360Miscellaneous357,7692530,513 370Capital Contributions000 390Other Financing Sources000 Total Revenues and Other Financing Sources 711,2411,010,9461,130,417352,667 Total Resources 713,6011,065,2821,142,180381,830 Operating Expenditures: 510General Government0033,667 520Public Safety000 530Physical Environment01,095,4370 540Transportation524,717000 550Economic Environment00227,968 560Mental and Physical Health000 570Culture and Recreational942,00500 Total Operating Expenditures 524,717942,0051,095,437261,635 Debt Service000 591-593 594-595Capital Outlay28976,9356500 Total Expenditures 525,0061,018,9401,096,087261,635 597-599Other Financing Uses184,8700096,664 Total Expenditures and Other Financing Uses709,8761,018,9401,096,087358,299 Excess (Deficit) of Resources Over Uses 3,72546,34246,09323,531 380Nonrevenues (Except 384)000 580Nonexpenditures (Except 584)000 Ending Cash and Investments: 3,72546,34246,09323,531 2 Reserved/ 508.10 2/ Unreserved 508.80$3,725$46,342$46,093$23,531 2/ Disclosure of reserved/unreserved fund balances is optional The Accompanying Notes Are An Integral Part Of This Statement. MCAG NO.0364STATEMENT C-4 CITY OF PORT TOWNSEND Page 3 of 5 FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2010 171 190195199 BARS Fire and EMS CDBG ProgramSystem Dev Comm Services CODE Actual AmountActual AmountActual AmountActual Amount Beginning Cash and Investments: $0$152,677$715,660$12,914 2/ Reserved 308.10 2/ 308.80Unreserved$0$152,677$715,660$12,914 388.80 or 588.80 Prior Period Adjustments Revenues and Other Sources: 310Taxes1,216,16300391,495 320Licenses and Permits0000 330Intergovernmental012,50701,000 340Charges for Goods and Services000119,363 350Fines and Penalties0000 360Miscellaneous04161,77825,135 370Capital Contributions0000 390Other Financing Sources000845,544 Total Revenues and Other Financing Sources 1,216,16312,9231,7781,382,537 Total Resources 1,216,163165,600717,4381,395,451 Operating Expenditures: 510General Government00016,029 520Public Safety1,233,064000 530Physical Environment0000 540Transportation0000 550Economic Environment012,8580122,300 560Mental and Physical Health0000 570Culture and Recreational0001,191,811 Total Operating Expenditures 1,233,06412,85801,330,140 591-593Debt Service0000 594-595Capital Outlay000908 Total Expenditures 1,233,06412,85801,331,048 597-599Other Financing Uses0042,7180 Total Expenditures and Other Financing Uses 1,233,06412,85842,7181,331,048 Excess (Deficit) of Resources Over Uses (16,901)152,742674,72064,403 380Nonrevenues (Except 384)00134,660-650 580Nonexpenditures (Except 584)0000 Ending Cash and Investments: (16,901)152,742809,38063,753 2 Reserved/ 508.10 2/ Unreserved 508.80($16,901)$152,742$809,380$63,753 2/ Disclosure of reserved/unreserved fund balances is optional The Accompanying Notes Are An Integral Part Of This Statement. MCAG NO.0364STATEMENT C-4 CITY FO PORT TOWNSEND Page 4 of 5 FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2010 200 301411412 BARS GO Debt Serv Gen Gov CIPWater/SewerStorm CODE Actual AmountActual AmountActual AmountActual Amount Beginning Cash and Investments: ($580)$2,622,273$7,182,864$542,414 2/ 308.10Reserved 2/ 308.80Unreserved($580)$2,622,273$7,182,864$542,414 388.80 or 588.80 Prior Period Adjustments($39,220) Revenues and Other Sources: 310Taxes146,907222,7080 320Licenses and Permits020,780 330Intergovernmental04,185,3490 340Charges for Goods and Services04,071,059518,281 350Fines and Penalties00 360Miscellaneous60,56761,34274,6121,347 370Capital Contributions02250 390Other Financing Sources836,2273,935,564169,0510 Total Revenues and Other Financing Sources1,043,7018,405,1884,335,502519,628 Total Resources 1,043,12111,027,46111,479,1461,062,042 Operating Expenditures: 510General Government2,119455,540 520Public Safety0 530Physical Environment03,830,316564,149 540Transportation0 550Economic Environment0 560Mental and Physical Health0 570Culture and Recreational0 Total Operating Expenditures 2,11904,285,856564,149 591-593Debt Service999,39437,45582,2080 594-595Capital Outlay06,580,329580,228 Total Expenditures 1,001,5136,617,7844,948,292564,149 597-599Other Financing Uses0418,693126,3330 Total Expenditures and Other Financing Uses1,001,5137,036,4775,074,625564,149 Excess (Deficit) of Resources Over Uses 41,6083,990,9846,404,521497,893 380Nonrevenues (Except 384)050,00015,980 580Nonexpenditures (Except 584)00915,589 Ending Cash and Investments: 41,6084,040,9845,504,912497,893 2 508.10Reserved/0 2/ Unreserved 508.80$41,608$4,040,984$5,504,912$497,893 2/ Disclosure of reserved/unreserved fund balances is optional The Accompanying Notes Are An Integral Part Of This Statement. MCAG NO.0364STATEMENT C-4 CITY FO PORT TOWNSEND Page 5 of 5 FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2010 500 BARS CODE Equip Rental Actual Amount Beginning Cash and Investments: $811,736 2/ 308.10Reserved 2/ 308.80Unreserved$811,736 388.80 or 588.80 Prior Period Adjustments Revenues and Other Sources: 310Taxes0 320Licenses and Permits0 330Intergovernmental0 340Charges for Goods and Services4,920 350Fines and Penalties0 360Miscellaneous832,922 370Capital Contributions0 390Other Financing Sources19,665 Total Revenues and Other Financing Sources 857,507 Total Resources 1,669,243 Operating Expenditures: 510General Government127,350 520Public Safety0 530Physical Environment0 540Transportation586,189 550Economic Environment0 560Mental and Physical Health0 570Culture and Recreational0 Total Operating Expenditures 713,539 591-593Debt Service0 594-595Capital Outlay247,997 Total Expenditures 961,536 597-599Other Financing Uses0 Total Expenditures and Other Financing Uses961,536 Excess (Deficit) of Resources Over Uses 707,707 380Nonrevenues (Except 384) 580Nonexpenditures (Except 584) Ending Cash and Investments: 707,707 2 508.10Reserved/ 2/ Unreserved 508.80707,707 2/ Disclosure of reserved/unreserved fund balances is optional The Accompanying Notes Are An Integral Part Of This Statement. MCAG NO. 0364SCHEDULE 16 SCHEDULE OF EXPENDITURES OF STATE AND LOCAL ASSISTANC E For the Year Ended December 31, 2010 Current Year Grantor / Program TitleIdentification Number Expenditures SOW Military Dept Emergency Management DivisionE10-017691.69$ FEMA 1734-DR-WA-212-P SOW Military Dept Emergency Management DivisionE10-03041,502.54$ FEMA-1641-DR-WA-5R SOW Military Dept Emergency Management DivisionTotal42,194.23$ SOS - Washington State LibraryG-10/2666,000.00$ Renew Washington Communications Washington State Library - Hard Times Grant09-TC-00540,161.52 Washington State LibraryTotal46,161.52$ Washington State - Transportation Improvement Board9-W-151 (005) - 11,370,613.54$ Upper Sims Way Project TIBTotal1,370,613.54$ Washington State Department of CommerceCI09-951-111319,436.46$ Washington State Public Works Board319,436.46$ Jefferson County, Washington - Public Infrastructure FundsPIF #2241,305.85$ Water Street CIFTotal241,305.85$ State of Washington - Department of CorrectionDOC - SOR20,500.00$ Operation Crackdown DOCTotal20,500.00$ State of Washington - Recreation & Conservation Funding04-1502D211,542.42$ Wave Viewing Gallery Total RCOTotal211,542.42$ Total-$ Grand Total2,251,754.02$ Notes to schedule of Expenditure of state and local financial assistance for the year ended December 31, 2010: Note 1 - Basis of Accounting This schedule is prepared on the same basis of accounting as the City of Port Townsend's financial statements. The City of Port Townsend uses the cash basis accounting. Note 2 - Program Costs The amounts shown as current year expenditures represent only the federal portion of the program costs. Entire program costs, including the city of Port Townsend's poprtion, are more than shown. 31 MCAG NO.0364 City of Port Townsend SCHEDULE 16 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2010 Current Year Expenditures Federal Agency Name CFDA From Pass- Footnote Other I.D. Number Pass-Through AgencyFederal Program Name From Direct Number Total Through Reference Name Awards Awards DHS/State of Washington MilitaryHazard Mitigation Grant/FEMA97-039E10-030249,015.22 DHS/State of Washington MilitaryHazard Mitigation Grant/FEMA97-039E10-017 253,165.294,150.07 DHS/State of Washington MilitaryDisaster Grants-Public Assistance97-036FEMA-1825-DR-WA100.00 100.00 DHS/State of Washington MilitaryPre-Disaster Mitigation97-047E10-11532,613.94 32,613.94 Department of Homeland Security Sub-Total285,879.23 Department of JusticeBulletproof Vest Partnership16-6071,198.75 1,198.75 16-5882,381.26 2,381.26 DOL/CTED/OVWViolence Against Women Formula Gran DOJ/OVWThe Community-Defined Soultions to V16-5902010-WE-AX-002028,566.97 28,566.97 16-804ARRA13,889.01 13,889.01 ARRA Department of Justice ARRA Edward Byrne Memorial JAG Department of Justice46,035.99 17-235ARRA 9,713.209,713.20 4 DOL/O3A Olympic Area Agency on AgingARRA Senior Community Service Employment Department of Labor9,713.20 USDA Rural DevelopmentCommunity Facilities Loans & Grants10-766 - USDA Rural Development- DOT/SOW DOTHighway Planning & Construction20-205LA-62272,554.36 DOT/SOW DOTHighway Planning & Construction20-205LA-666846,337.18 ARRA DOT/SOW DOTHighway Planning & Construction20-205 ARRA LA-6668 1,330,359.191,281,467.65 4 National Motor Carrier Safety20-218352.04 352.04 DOT/Federal Motor Carrier Safety DOT NHTSA/WA Traffic SafetyState & Community Highway Safety20-600328.98 DOT NHTSA/WA Traffic SafetyState & Community Highway Safety20-6002,467.18 DOT NHTSA/WA Traffic SafetyState & Community Highway Safety20-600746.28 3,542.44 DOT NHTSA/WA Traffic SafetyOccupant Protection Incentive Grants20-6021,349.81 1,349.81 DOT NHTSA/WA Traffic SafetyAlcohol Impaired Driving Countermeasu20-6012,379.58 2,379.58 Department of Transportation1,337,983.06 45-0251,000.00 1,000.00 National Endowment for the ArtsPromotion of the Arts Partnership Agree National Endowment for the Arts1,000.00 Institute of Museum & Library Service Grants to State45-310G - 35167,467.75 Washington State Library Institute of Museum & Library Services7,467.75 Special Project, Neighborhood Initiative HUD - Community Planning14-251B-08-SP-WA-0553- and Miscellaneous Grants HUD - Community Planning/CTECDBG/State's program14-22808-64008-044(045)24,250.00 24,250.00 3 D Department of Housing and Urban Development24,250.00 - Department of Interior- Grand Total1,712,329.23 Notes to schedule of Expenditure of Federal Awards for the year ended December 31, 2010: Note 1 - Basis of Accounting This schedule is prepared on the same basis of accounting as the City of Port Townsend's financial statements. The City of Port Townsend uses the cash basis accounting. Note 2 - Program Costs The amounts shown as current year expenditures represent only the federal portion of the program costs. Entire program costs, including the city of Port Townsend's poprtion, are more than shown. Note 3 - Amounts Awarded to Sub Recipients Included in the total amount expended for this program is $24,250.00 that was passed through to a sub recipient that administered its own project. Note 4 - American Recovery and Reinvestment Act (ARRA) of 2009 Expenditures for this program were funded by ARRA 30 MCAG NO.364SCHEDULE 19 LABOR RELATIONS CONSULTANT(S) For the Year Ended December 31, 2010 Has your government engaged labor relations consultants?_____ Yes______X No If yes, please provide the following information for each consultant(s): Name Of Firm Name Of Consultant Business Address Amount Paid To Consultant During Fiscal Year Terms And Conditions, As Applicable, Including: Rates (E.g., Hourly, Etc) _______________________________________________________ Maximum Compensations Allowed _______________________________________________ Duration Of Service ____________________________________________________________ Services Provided _____________________________________________________________ ____________________________________________________________________________ Certified Correct this ______27th__________ day of __________May__________, ____2011__ to the best of my knowledge and belief: Corena m Stern Signature Corena M Stern Name Deputy Finance Director Title