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Home My WebLink About2011 Annual ReportANNUAL REPORT City of Port Townsend MCAG No. 0364 Submitted pursuant to RCW 43.09.230 to the STATE AUDITORS OFFICE FOR THE FISCAL YEAR ENDED DECEMBER , 2011 Certified correct this 25th day of May , 2012, to the best of my knowledge and belief: GOVERNMENT INFORMATION: Official Mailing Address 250 Madison St., Port Townsend, WA 98368 Official Web Site Address http://www.cityofpt.us/ PREPARER INFORMATION and CERTIFICATION: Preparer Name and Title Corena 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 1 City of Port Townsend Notes To The Financial Statements For the Year Ended December 31, 2011 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. 2 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 3 chargeable against the prior year(s) budget appropriations as required by state law. 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: 2011 Final Appropriated Actual Fund AmountExpenditures Variance General $ 6,918,141 $ 6,804,176 $ 113,965 Drug Enforcement & Educ Fund $ 13,990 $ 13,990 $ 0 Contingency $ 54,996 $ 54,996 $ 0 Street $ 731,320 $ 707,762 $ 23,558 Library $ 986,720 $ 939,622 $ 47,098 Public Work & Admin $ 1,074,410 $ 993,158 $ 81,252 Lodging Tax $ 370,333 $ 339,050 $ 31,283 Fire & EMS Service $ 1,751,134 $ 1,730,895 $ 20,239 CDBG $ 50,000 $ 24,250 $ 25,750 System Development Chrges $ 148,500 $ 8,156 $ 140,344 Community Services $ 1,675,227 $ 1,621,292 $ 53,935 GO Debt Service $ 1,168,903 $ 1,167,704 $ 1,199 Water/Sewer Utility $ 5,527,811 $ 5,021,068 $ 506,743 Stormwater $ 672,504 $ 530,232 $ 142,272 Utility Construction Fund $ 1,380,500 $ 377,182 $ 1,003,318 4 Trans line Replacement $ 440,600 $ 295,409 $ 145,191 1978 Water Sewer Rev Bond $ 22,250 $ 22,250 $ - 1992/98 WS Rev Bond Reserve $ 400,000 $ 400,000 92 Water/Sewer Bond Redempt $ 461,460 $ 460,460 $ 1,000 Equipment Rental $ 887,804 $ 804,894 $ 82,910 Firemen's Pension $ 90,161 $ 65,739 $ 24,422 Memorial Fund $ 3,000 $ 1,315 $ 1,685 Golf Course Fund $ 19,800 $ 5,400 $ 14,400 Maritime Center Fund $ $ 3 $ ( 3) Capital Improvement $ 5,600,306 $ 4,314,113 $ 1,286,193 $ 30,449,870 $ 26,703,116 $ 3,746,754 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 2011 were approximately $577.62. 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 for regular employees and 360 hours for department heads, is payable upon resignation, retirement or death. Sick leave may be accumulated up to 1440 hours. Upon separation or retirement employees do not receive payment for unused sick leave. 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. 5 Risk Management See Note 8. NOTE 2 - COMPLIANCE AND ACCOUNTABILITY There have been no material violations of finance-related legal or contractual provisions. 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, 2011 are as follows: Investments Carrying Amount Market value Washington State Treasurer’s Investment Pool$9,224,926.22 $9,224,926.22 US Bank Savings Account $577.62 $577.62 2011 Total Investments $9,225,503.84 $9,225,503.84 NOTE 4 - PROPERTY TAXES 6 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 2011 was $1.39077 per $1,000.00 on an assessed valuation of $1,463,343,405 for a total regular levy of $2,035,174.11. In 2011 the city also had a special levy for Emergency Medical Services (EMS). The EMS levy rate was voter approved in 2010 to $ .50 per $1,000 for a total levy of $731,671.70. A Library LID lift was approved by voters in 2008 to be phased in over 2009-2011. For 2011 the library levy was .64563 per 1,000 for a total of $944,778.40 NOTE 5 - LONG-TERM DEBT The accompanying Schedule of Long-term Debt (09) provides a listing of the outstanding debt of the city and summarizes the City of Port Townsend’s debt transactions for the 2011. The debt service payments for the year being reported and future payment requirements, including interest, are as follows: G.O. Bonds Revenue Bonds Other Debt Total Debt 2011 $ 1,166,583 $ 22,250 $ 293,188 $ 1,482,021 2012 1,163,708 21,500 291,535 1,476,743 2013 1,143,221 20,750 289,882 1,453,853 2014 1,147,196 25,000 288,229 1,460,425 2015 1,144,835 24,000 286,576 1,455,411 2016 1,337,861 23,000 284,923 1,645,784 2017-2038 22,544,655 43,000 1,368,191 23,955,846 Totals $ 29,648,059 $ 179,500 $ 3,102,524 $ 32,930,083 7 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 Carnegie library seismic retrofit. General obligation bonds currently outstanding are as follows: Issue Date Purpose Original Issue Interest Rate Maturity Date Debt Outstanding 1999 Limited GO Bonds for Fire & Library repairs from interfund loans;city facilities, Marine Science Ctr and Police Station. $645,000 5.0 – 6.0% 2016 $220,000 2002 Limited GO Bonds for construction of City Hall Annex and old City Hall. $3,465,000 1.95– 4.70% 2022 $2,635,000 2003 Limited GO Bonds for Skateboard Park, the Wave Viewing Gallery, City Hall, Fire Station, Pool & Pink House Lease settlement. $2,390,000 1.85-4.60% 2023 $1,750,000 8 2005 Limited GO Bonds for construction funds for City Hall Annex and Old City Hall $1,545,000 3.05- 4.35% 2025 $1,360,000 2008 2010 Limited GO Bonds for construction funds for Civic and Street Improvements Limited Go Bonds for Street, Sidewalk, Utilities and the Historic District TOTAL $7,500,000 $3,740,000 4.15 -5.00% 2.30-5.00% 2038 2030 $7,500,000 $3,740,000 $17,205,000 As of December 31, 2011 the long term debt payable from proprietary fund resources consisted of the following: Issue Date Purpose Original Issue Interest Rate Maturity Date Debt Outstanding 1978 Water/Sewer Revenue Bonds Water and Sewer Improvements $395,000 5% 2018 $ 130,000 TOTAL $ 130,000 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 9 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, 2011 the long-term debt payable for PWTF and SRF loans consisted of the following: Issue Date Purpose Original Issue Interest Rate Maturity Date Debt Outstanding 1998 PWTF Loan CT Pipeline Tri-Area Water Storage Tri-Area Well upgrades (payoff of $1,186,718 with sale of Tri-Area assets) $2,172,055 1% 2018 $313,026 1999 PWTF Loan Gaines St Lift Station San Juan Sewer Trunk Line $1,434,365 1% 2019 $476,758 2001 PWTF Loan Wastewater Treatment Outfall Expansion Trunk Sewer Line replacement $1,153,350 .5% 2021 $552,766 2002 2002 PWTF Loan Morgan Hill Water System Improvements SRF Loan Wastewater Conveyance Storm and sewer separation Gaines St Lift Station Phase 2 Trunk Sewer Replace $1,242,742 $856,803 .5% 1.5% 2022 2024 $733,721 $599,311 10 2006 PWTF Loan Planning TOTAL $100,000 0.0% 2012 $20,500 $2,696,082 C. ADVANCED REFUNDING AND DEFEASED BONDS In 1998 the City of Port Townsend refunded two prior revenue bond issues while issuing an 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. In 2011 the City of Port Townsend paid off the 1998 refunding bond issue of $5,950,000. 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 public employee defined benefit and defined contribution employee retirement plans. Actuarial information is 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 2011 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 11 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 150 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 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. 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. 12 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. 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 The $325,000 City Hall loan was paid off in 2011 using 2008 Bond proceeds. The Horton Land purchase of $48,097 was paid off in 2011 by Public Infrastructure Fund money received from Jefferson County. In March 2010, City Council authorized short term interfund loans up to the amount of $150,000 from the OGWS Transmission Pipeline Fund or the Equipment Rental Fund to the General Fund to cover short term cash flow needs in anticipation of property tax collections. The following table displays interfund loan activity during 2011: Borrowing Lending Balance New 2011 Balance Fund Fund 1/1/2011 Loans Repayments 12/31/2011 EMS equip 010 500 $ 75,000 $ - $ 75,000 City Hall 010 417 $ 325,000 $ 325,000 $ - Golf Bldg 199 417 $ 83,508 $ - $ 83,508 Park land 199 417 $ 185,571 $ - $ 185,571 Horton Land 305 417 $ 50,000 $ 50,000 $ - 13 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. In September 2011 the Council amended the authority’s charter to change the name to the Fort Worden Lifelong Learning Center Public Development Authority. It’s purpose was amended to focus solely on the Park. For 2010, the PDA incurred $10,451 in expenses, paid by the City. 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 a private, non-profit membership organization – National Trust for Historic Preservation. In 2011 the city paid $36,773.14 in costs associated with the Fort Worden PDA, most of these expenses were for attorney fees and architectural consulting fees. On September 6th, 2011 the council authorized the City to use funds from the 2010 LTGO bond to pay up to $50,000 for consulting services in connection with the potential customs house renovation and proposed renovation of Building 202 at Fort Worden. An additional $70,000 was authorized to be transferred to the FWPDA for it’s use in connection with the proposed renovation of Building 202. No transfer of funds from bond proceeds were made in 2011, pending the outcome of an agreement between the FWPDA and the State of Washington on the future of Fort Worden State Park’s management. NOTE 13 – PRIOR YEAR CORRECTION An interfund loan in the amount of $185,571 for a parks capital purchase in 2009 was approved through resolution by City Council in 2010. This loan was disclosed on the 2010 Annual Report, but was not added to the budget or booked on the general ledger as a loan disbursement in 2010. NOTE 14 – EQUIPMENT RENTAL FUND ALLOCATION In light of the economic downturn, the city suspended 50% of Equipment Rental contributions across most funds, and is evaluating the funding policies for equipment replacement. The water and sewer fund contributions were kept at 100% and the police contribution was adjusted to 34% of the original adopted budget. 14 NOTE 15 – FIXED ASSET SALE Per the amendment to the interlocal agreement between the City of Port Townsend and East Jefferson Fire District 1, the city sold it’s Fire Hall and Fire Hall real property to the District for the sum of $477,806.76. Funds received were utilized by the GO Debt service fund to meet 2011 debt service obligations. NOTE 16 – INTERLOCAL AGREEMENT WITH EAST JEFFERSON FIRE RESCUE On November 22, 2010, the city amended its joint operating agreement with East Jefferson Fire Rescue (District) for fire protection and emergency medical services. The agreement required the city to reimburse the District for debt service on the new 2010 District general obligation bond. During 2011 the city paid the district $179,995.75 as reimbursement for their 2010 bond debt service. City Voters approved a Fire levy LID lift in November 2011, payable in 2012. This approved levy increase will be devoted to the District and terminates that portion of the interlocal amendment related to the city reimbursing the district for 2010 bond debt service. 15 MCAG NO.364STATEMENT C‐4 City of Port Townsend FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2011 Total for All Funds010101 General FundDrug Enforce Beginning Cash and Investments$40,930$40,468 308.10Reserved$3,213,305 308.80Unreserved8,891,20840,93040,468 Prior Period Adjustments (388.80 and 588.80)0 Revenues and Other Sources 310Taxes9,067,5664,685,513 320Licenses and Permits232,450216,344 330Intergovernmental2,862,319308,831 340Charges for Goods and Services7,166,4851,473,502 350Fines and Penalties100,49686,735 360Miscellaneous928,83224,55264 370Capital Contributions00 390Other Financing Sources2,128,1630 22,486,3116,795,47764 Total Resources34,590,8246,836,40740,532 Operating Expenditures: 510General Government2,665,0982,048,602 520Public Safety4,413,1802,848,29113,990 530Physical Environment5,250,5170 540Transportation1,103,2960 550Economic Environment1,054,086747,458 560Mental and Physical Health00 570Culture and Recreational2,398,09219,099 Total Operating Expenditures16,884,2695,663,45013,990 591‐593Debt Service1,252,5510 594‐595Capital Expenditures4,744,8517,688 598Other Expenditures0 Total Expenditures22,881,6715,671,13813,990 596‐599Other Financing Uses1,834,3941,133,000 24,716,0656,804,13813,990 Excess (Deficit) of Resources Over Uses9,874,75932,26926,542 380Nonrevenues (Except 384)480,815400 580Nonexpenditures (Except 584)1,124,51639 Ending Cash and Investments: 508.10Reserved3,194,7100 508.80Unreserved6,035,98932,26926,542 Total Revenues and Other Financing Sources Total Expenditures and Other Financing Uses BARS CODE 16 MCAG NO.364 City of Port Townsend FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2011 Beginning Cash and Investments 308.10Reserved 308.80Unreserved Prior Period Adjustments (388.80 and 588.80) Revenues and Other Sources 310Taxes 320Licenses and Permits 330Intergovernmental 340Charges for Goods and Services 350Fines and Penalties 360Miscellaneous 370Capital Contributions 390Other Financing Sources Total Resources Operating Expenditures: 510General Government 520Public Safety 530Physical Environment 540Transportation 550Economic Environment 560Mental and Physical Health 570Culture and Recreational Total Operating Expenditures 591‐593Debt Service 594‐595Capital Expenditures 598Other Expenditures Total Expenditures 596‐599Other Financing Uses Excess (Deficit) of Resources Over Uses 380Nonrevenues (Except 384) 580Nonexpenditures (Except 584) Ending Cash and Investments: 508.10Reserved 508.80Unreserved Total Revenues and Other Financing Sources Total Expenditures and Other Financing Uses BARS CODE STATEMENT C‐4 102110120 ContingencyStreetLibrary $101,379$3,725$46,342 101,3793,72546,342 20,810511,712945,891 231 201,96336,619 9,550 61513,146 1867,160 20,996724,0711,002,816 122,375727,7961,049,158 515,897 867,609 0515,897867,609 11,99572,013 0527,892939,622 54,996179,870 54,996707,762939,622 67,37920,034109,536 67,37920,034109,536 17 MCAG NO.364 City of Port Townsend FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2011 Beginning Cash and Investments 308.10Reserved 308.80Unreserved Prior Period Adjustments (388.80 and 588.80) Revenues and Other Sources 310Taxes 320Licenses and Permits 330Intergovernmental 340Charges for Goods and Services 350Fines and Penalties 360Miscellaneous 370Capital Contributions 390Other Financing Sources Total Resources Operating Expenditures: 510General Government 520Public Safety 530Physical Environment 540Transportation 550Economic Environment 560Mental and Physical Health 570Culture and Recreational Total Operating Expenditures 591‐593Debt Service 594‐595Capital Expenditures 598Other Expenditures Total Expenditures 596‐599Other Financing Uses Excess (Deficit) of Resources Over Uses 380Nonrevenues (Except 384) 580Nonexpenditures (Except 584) Ending Cash and Investments: 508.10Reserved 508.80Unreserved Total Revenues and Other Financing Sources Total Expenditures and Other Financing Uses BARS CODE STATEMENT C‐4 150171190 Lodging TaxFire an EMSCDBG Prog $23,531($16,901)$152,742 23,531‐16,901152,742 350,4231,703,272 48,638 1,284253 54,996 351,7071,758,26848,891 375,2381,741,367201,633 33,667 1,550,899 24,250 211,954 245,6211,550,89924,250 245,6211,550,89924,250 93,430179,996 339,0511,730,89524,250 36,18710,472177,383 36,18810,472177,383 18 MCAG NO.364 City of Port Townsend FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2011 Beginning Cash and Investments 308.10Reserved 308.80Unreserved Prior Period Adjustments (388.80 and 588.80) Revenues and Other Sources 310Taxes 320Licenses and Permits 330Intergovernmental 340Charges for Goods and Services 350Fines and Penalties 360Miscellaneous 370Capital Contributions 390Other Financing Sources Total Resources Operating Expenditures: 510General Government 520Public Safety 530Physical Environment 540Transportation 550Economic Environment 560Mental and Physical Health 570Culture and Recreational Total Operating Expenditures 591‐593Debt Service 594‐595Capital Expenditures 598Other Expenditures Total Expenditures 596‐599Other Financing Uses Excess (Deficit) of Resources Over Uses 380Nonrevenues (Except 384) 580Nonexpenditures (Except 584) Ending Cash and Investments: 508.10Reserved 508.80Unreserved Total Revenues and Other Financing Sources Total Expenditures and Other Financing Uses BARS CODE STATEMENT C‐4 195199200 System DevComm ServGO Debt Serv $809,380$63,753$41,608 809,38063,75341,608 527,574149,925 119,775 1,52826,931199 962,0001,089,553 1,5281,636,2801,239,677 810,9081,700,0331,281,285 15,234907 94,674 1,511,384 01,621,292907 1,166,797 01,621,2921,167,704 8,156 8,1561,621,2921,167,704 802,75278,741113,581 90,1261,450 892,87880,191113,581 19 MCAG NO.364 City of Port Townsend FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2011 Beginning Cash and Investments 308.10Reserved 308.80Unreserved Prior Period Adjustments (388.80 and 588.80) Revenues and Other Sources 310Taxes 320Licenses and Permits 330Intergovernmental 340Charges for Goods and Services 350Fines and Penalties 360Miscellaneous 370Capital Contributions 390Other Financing Sources Total Resources Operating Expenditures: 510General Government 520Public Safety 530Physical Environment 540Transportation 550Economic Environment 560Mental and Physical Health 570Culture and Recreational Total Operating Expenditures 591‐593Debt Service 594‐595Capital Expenditures 598Other Expenditures Total Expenditures 596‐599Other Financing Uses Excess (Deficit) of Resources Over Uses 380Nonrevenues (Except 384) 580Nonexpenditures (Except 584) Ending Cash and Investments: 508.10Reserved 508.80Unreserved Total Revenues and Other Financing Sources Total Expenditures and Other Financing Uses BARS CODE STATEMENT C‐4 301411412 GenGov CIPWater/SewerStorm $4,040,983$5,504,880$497,893 $3,213,305 4,040,9842,291,575497,893 185,571‐185,571 172,446 15,875 2,266,268 4,070,326521,198 80,81976,517820 5,00016,156 2,524,5344,178,874522,017 6,751,0899,498,1831,019,910 438,327 3,727,127530,232 04,165,454530,232 32,60453,150 3,772,727767,044 3,805,3314,985,648530,232 184,946 3,990,2774,985,648530,232 2,760,8124,512,535489,679 388,839 375,033749,444 3,194,710 2,385,779957,220489,679 20 MCAG NO.364 City of Port Townsend FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2011 Beginning Cash and Investments 308.10Reserved 308.80Unreserved Prior Period Adjustments (388.80 and 588.80) Revenues and Other Sources 310Taxes 320Licenses and Permits 330Intergovernmental 340Charges for Goods and Services 350Fines and Penalties 360Miscellaneous 370Capital Contributions 390Other Financing Sources Total Resources Operating Expenditures: 510General Government 520Public Safety 530Physical Environment 540Transportation 550Economic Environment 560Mental and Physical Health 570Culture and Recreational Total Operating Expenditures 591‐593Debt Service 594‐595Capital Expenditures 598Other Expenditures Total Expenditures 596‐599Other Financing Uses Excess (Deficit) of Resources Over Uses 380Nonrevenues (Except 384) 580Nonexpenditures (Except 584) Ending Cash and Investments: 508.10Reserved 508.80Unreserved Total Revenues and Other Financing Sources Total Expenditures and Other Financing Uses BARS CODE STATEMENT C‐4 500540 Equip RentalPW Admin/Eng $707,706$46,093 707,70646,093 3,550968,584 708,49821 458 712,506968,605 1,420,2121,014,698 128,361 993,158 563,149 691,510993,158 113,384 804,894993,158 804,894993,158 615,31821,540 615,31821,540 21 MCAG NO. (0364) STATEMENT C‐5 STATEMENT C‐5 City of Port Townsend FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS For the Year Ended December 31, 2011 Total for All 601 610 613 621 623 631 Fiduciary FundsRefundable DepositsFiremen's PensionAgencyMemorialGolf CourseMaritimer Ctr Beginning Cash and Investments $396,087 $47,766$314,534 $14,624 $3,750$15,413 $2 Prior Period Adjustments 0 Revenue and Other Financing Sources 52,994 34,534 5518,405 0 Total Resources 449,082 47,766 349,068 14,624 3,80533,818 2 Expenditures And Other Financing Uses 72,454 65,739 1,315 5,400 0 Excess (Deficit) of Resources Over Uses 376,628 47,766 283,329 14,624 2,49028,418 2 Nonrevenues (Except 384) 91,168 28,074 63,094 Nonexpenditures (Except 584) 64,650 5,888 58,762 2 Ending Cash and Investments 403,146 69,952 283,329 18,956 2,49028,418 0 The Accompanying Notes Are An Integral Part Of This Statement. 22 MCAG 0364 SCHEDULE 09PAGE 1 OF 2 CITY OF PORT TOWNSEND SCHEDULE OF LONG-TERM DEBT AND OTHER LIABILITIES GOVERNMENTAL FUNDS For The Year Ended December 31, 2011 (1)(2)(3)(4)Beginning Outstanding Date of 01/01/2011AdditionsReductionsEnding OutstandingID. No.OriginalDate of(Ending Outstanding Amount Issued inAmount Redeemed inBARS Code for Redeeming 12/31/2011DescriptionIssueMaturity Balance fromCurrent YearCurrent YearRedemptionFund Number(1)+(2)-(3)Prior Year)for debt only 251.11 LTGO Bond 199129-Jul-911-Jan-12$17,452$0$17,452591.740.71200$0251.11 LTGO Bond 199920-Oct-991-Dec-16$285,000$0$65,000591.730.71200$220,000251.11 LTGO Bond 20021-Oct-021-Dec-22$2,765,000$0$130,000591.190.71200$2,635,000251.11 LTGO Bond 200330-Dec-031-Dec-23$1,865,000$0$115,000591.191.71200$1,750,000251.11 LTGO Bond 20051-Nov-051-Dec-25$1,405,000$0$45,000591.192.71200$1,360,000263.82 PWTF Loan 200611-Aug-061-Jul-12$41,000$0$20,500591.730.71200$20,500251.11 LTGO Bond 20081-Jul-081-Dec-38$7,500,000$0$0591.193.71200$7,500,000 251.11 LTGO Bond 2010 20-Dec-101-Dec-30$3,740,000$0$0591.194.71200$3,740,000259.11 Compensated Absences$375,283$75,226$450,509TOTAL$17,993,735$75,226$392,952$17,676,009` 23 MCAG 0364 SCHEDULE 09PAGE 2 OF 2 CITY OF PORT TOWNSEND SCHEDULE OF LONG-TERM DEBT AND OTHER LIABILITIES PROPRIETARY FUNDS For The Year Ended December 31, 2011 (1)(2)(3)(4)Beginning Balance Date of 01/01/2011AdditionsReductionsEnding OutstandingID. No.OriginalDate of(Ending Oustanding Amount Issued inAmount Redeemed inBARS Code for Redeeming 12/31/2011 DescriptionIssueMaturity Balance fromCurrent YearCurrent YearRedemptionFund number(1)+(2)-(3)Prior Year ) 252.11 1978 Water Rev Bd 1-Mar-781-Mar-18 $145,000.00 $0.00 $15,000.00582.340.72419 $130,000.00 252.11 1998 REFUNDING BONDS 1-Feb-981-Dec-17 $440,000.00 $0.00 $440,000.00582.340.72426 $0.00 263.82 1998 PWTF Loan 1-Jul-981-Jul-18 $357,744.51 $0.00 $44,718.02582.340.78411 $313,026.49 263.82 1999 PWTF Loan 1-Jul-991-Jul-19 $536,352.91 $0.00 $59,594.77582.350.78411 $476,758.14 263.82 2001 PWTF Loan 1-Jul-011-Jul-21 $608,041.97 $0.00 $55,276.00582.350.78411 $552,765.97 263.82 2002 PWTF Loan 1-Jul-021-Jul-22 $800,422.86 $0.00 $66,701.90582.350.78411 $733,720.96 263 .82 DOE Wastewater 27-Feb-0231-Oct-23 $640,767.81 $0.00 $41,457.12582.350.78411 $599,310.69 259.12 Compensated Absences $88,089.73$17,585.57 $105,675.30 Total $3,616,419.79$17,585.57 $722,747.81 411 $2,911,257.55 24 MCAG (0364)Schedule 10 City of Port Townsend Schedule of Limitation of Indebtedness As of December 31, 2011 Remaining Debt Total Taxable Property Value 1,463,343,405$Capacity 2.5% General purpose limit is allocated between:36,583,585 Up to 1.5% debt without a vote21,950,151 Less: Outstanding Debt17,225,500 Less: Excess of Debt with a Vote0 Add: Available Assets113,582 Equals remaining debt capacity without a vote$4,838,233 Up to 2.5% debt with a vote19,471,667 14,633,434 Less: Outstanding Debt Add: Available Assets Equals remaining debt capacity with a vote$19,471,667 2.5% Utility purpose limit, voted36,583,585 Less: Outstanding Debt Less: Contracts Payable Add: Available Assets Equals remaining debt capacity‐ Utility purpose, voted$36,583,585.13 2.5% Open Space, park & capital facilities, voted36,583,585 Less: Outstanding Debt Less: Contracts Payable Add: Available Assets Equals remaining debt capacity ‐ Open space, park & capital facilites voted$36,583,585.13 25 MCAG 0364 CITY OF PORT TOWNSEND Schedule of Disbursements As of December 31, 2011 Schedule 11 Fund No. Fund Title Beginning Cash and Investment Receipts Transfers-InOther Revenue Netted TransactionsTotal IncreaseDisbursementsTransfers-Out Other ExpendituresTotal Decrease Ending Cash and Investment 010Current Expense 40,217.62 5,488,225.32 1307653.53 6795878.85 5519352.21 1284824.06 6804176.27 31920.2 101Drug Enforcement & Education 40,467.3 8 64.26 64.2613989.9213989.9226541.72 102Contingency Fund 101,379.1 6 20,996.35 20996.35054995.7554995.7567379.76 110Street 3,729.29 724,070.84 724070.84 375383.34 332378.5 707761.84 20038.29 120Library Fund 46,341.75 1,002,815.38 1002815.38 815824.23123797.54 939621.77 109535.36 140PW Admin & Eng Fund 46,092.4 4 21.38 968584.47 968605.85962980.76 30177.42 993158.18 21540.11 150Lodging Tax 23,531.59 351,707.02 351707.0 2 211954.04 127096.35 339050.39 36188.22 171Fire and EMS ‐16,900.77 1,703,272.19 54995.751758267.94 1730894.81 1730894.81 10472.36 190Comm Dev Block Grant 152,741.84 48,891.38 48891.38 24250 24250177383.22 195System Development Charge 820,629.35 91,653.63 91653.63 08156 8156904126.98 199Community Services 63,752.74 675,729.96 962000.04 1637730 1437493.32 183798.41 1621291.73 80191.01 200G.O. Debt Service 41,608.46 627,930.89 611746.051239676.94 1167703.9 1167703.9 113581.5 301Capital Improvement Fund ‐895,937.4 4 468,786.37 1508562.2 185571 2162919.57 1414591.19 285607.99 01700199.18 ‐433217.05 304Street Vacation Proceeds 122,655.00 0.00 00122655 305CIP Street ‐1,638,015.43 2,044,255.07 1301056.77 3345311.84 2110650.4 196856.83 2307507.23 ‐600210.82 3082008 GO Bond Proceeds 2,647,382.50 203.10 203.1314402365038.46 2396478.46 251107.14 3102010 GO Bond Fund 3,804,898.4 1 6,289.36 6289.36 1164764580.55 765744.553045443.22 411Water ‐ Sewer 1,704,005.45 4,151,695.16 4151695.16 3043191.11 1977876.87 5021067.98 834632.63 412Storm and Surface Water 497,892.33 522,017.16 522017.16 302406.91 227824.73 530231.64 489677.85 415Water ‐ Sewer/CIP Fund 3,384.4 6 0.00 377182.06 377182.06 342892.97 34289.09 377182.06 3384.46 41756 Trans Line Replacement 3,213,337.05 37,320.26 425033.26 462353.52 264899.98 30509.14 185571480980.12 3194710.45 41978 Water Revenue Bonds Red 48,055.84 46.72 2225022296.72222502225048102.56 42492/98 W/S Rev Bond Reserve 470,227.37 750.02 750.020400000 400000 70977.39 42692 W/S Revenue Bond Red 65,870.20 198.73 400000 400198.73460460 460460 5608.93 500Equipment Rental 707,705.68 9,913.29 702593.06 712506.35604152.14 200742.12 804894.26 615317.77 601Refundable Deposits 47,765.91 28,073.60 28073.6 5888.1 5888.169951.41 610Fireman's Pension and Relief 314,534.29 34,534.21 34534.2154432.0911307.36 65739.45283329.05 613Court‐Agency 14,624.61 63,093.71 63093.7158762.04 58762.04 18956.28 610Memorial 3,749.97 55.33 55.331314.83 1314.832490.47 623Golf Course 15,413.80 18,405.46 18405.46 3600.351800 5400.3528418.91 631 2.82 0.00 02.82 2.82 0 Total 12,511,143.6718,121,016.158,641,657.19185,571.000.0026,948,244.3420,981,925.468,641,657.17185,571.0029,809,153.639,650,234.38 schedule1112 26 MCAG NO. 0364SCHEDULE 16 City of Port Townsend SCHEDULE OF EXPENDITURES OF STATE AND LOCAL ASSISTANCE For the Year Ended December 31, 2011 Current Year Expenditures SOW Military Dept Emergency Management DivisionE10-017401.50$ FEMA 1734-DR-WA-212-P SOW Military Dept Emergency Management DivisionE10-03018,041.55$ FEMA-1641-DR-WA-5R SOW Military Dept Emergency Management DivisionE10-13217,323.79$ FEMA-1734-DR-WA-15R SOW Military Dept Emergency Management DivisionE11-21122,180.51$ FEMA-1825-DR-WA-8R SOW Military Dept Emergency Management DivisionTotal57,947.35$ Washington State - Transportation Improvement Board9-W-151 (005) - 1405,525.35$ Upper Sims Way Project TIBTotal405,525.35$ Washington State Department of CommerceCI09-951-111298,563.54$ Madison Street Washington State Public Works BoardTotal298,563.54$ Jefferson County, Washington - Public Infrastructure FundsPIF #2500,000.00$ Water Street CIFTotal500,000.00$ State of Washington - Department of CorrectionDOC - SOR15,000.00$ Operation Crackdown DOCTotal15,000.00$ State of Washington - Traffic Safety CommissionSA155311,365.23$ SZ Flasing Light Total WTSCTotal11,365.23$ Department of EcologySW108450,930.49 G 1200119 Total50,930.49$ Grand Total1,339,331.96$ Notes to schedule of Expenditure of state and local financial assistance for the year ended December 31, 2011: Note 1 - Basis of Accounting This schedule of state and local financial assistance is prepared on the same basis of accounting as the City of Port Townsend's General Government Financial Statements. The City of Port Townsend's General Government Funds use the cash basis of accounting. Note 2 - Program Costs The amounts shown as current year expenditures represent only the local portion of the program costs. Actual program costs may be more than shown. Grantor / Program Title Identification Number 27 MCAG NO. 0364 SCHEDULE 16 Federal Agency Name Pass-Through AgencyFederal Program Name From Pass- Through From Direct Name Awards Awards DHS/State of Washington MilitaryHazard Mitigation Grant/FEMA97-039E10-030100,376.01 DHS/State of Washington MilitaryHazard Mitigation Grant/FEMA97-039E10-0172,408.96 DHS/State of Washington MilitaryDisaster Grants-Public Assistance97-039FEMA-1682-DR-WA31,170.35 DHS/State of Washington MilitaryDisaster Grants-Public Assistance97-039FEMA-1734-DR-WA103,942.75 DHS/State of Washington MilitaryDisaster Grants-Public Assistance97-039FEMA-1825-DR-WA133,083.06 370,981.13 DHS/State of Washington MilitaryPre-Disaster Mitigation97-047E10-11584,151.32 84,151.32 Department of Homeland Security Sub-Total455,132.45 Department of JusticeBulletproof Vest Partnership16-6072,993.64 2,993.64 DOJ/OVW Grants to Encourage Arrest Policies & Enfo16-5902010-WE-AX-0020171,243.28 171,243.28 3 DOJ/Office of Community OrientePublic Safety Partership and Coummun16-7102010-CK-WX-07421,200.00 1,200.00 3 Department of Justice175,436.92 DOL/O3A Olympic Area Agency on AgingSenior Community Service Employment 17-23510,996.64 10,996.64 Department of Labor10,996.64 DOT/SOW DOTHighway Planning & Construction20-205LA-6227 DOT/SOW DOTHighway Planning & Construction20-205LA-6668203,147.96 DOT/SOW DOTARRA Highway Planning & Constructio20-205 ARRA LA-6668203,147.96 4 DOT NHTSA/WA Traffic SafetyState & Community Highway Safety20-600334.08 DOT NHTSA/WA Traffic SafetyState & Community Highway Safety20-600334.08 DOT NHTSA/WA Traffic SafetyOccupant Protection Incentive Grants20-602996.94 996.94 DOT NHTSA/WA Traffic SafetyAlcohol Impaired Driving Countermeas20-601- Department of Transportation204,478.98 Institute of Museum & Library Service Washington State Library Grants to State45-310G - 11/06817,520.29 17,520.29 Institute of Museum & Library Services17,520.29 Grand Total863,565.28 Notes to schedule of Expenditure of Federal Awards for the year ended December 31, 2011: 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 $166,208.17 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 Footnote Reference Current Year Expenditures City of Port Townsend SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2011 Total Other I.D. Number CFDA Number 28 MCAG NO. 0364 City of Port Townsend LOCAL GOVERNMENT RISK-ASSUMPTION For the Year Ended December 31, 2011 Program Manager: Michael Legarsky, Finance Director Phone: 360-379-4403 Email: mlegarksy@cityofpt.us 1. NO - Does the entity self-insure for any class of risk, including liability, property, health and welfare, unemployment compensation, workers’ compensation? (yes/no) If NO, STOP, you do not need to complete the rest of this Schedule. If YES, continue below. a. Which class of risk does the entity self-insure? Check all that apply. i. _____ Liability ii. _____ Property iii. _____ Health and Welfare (medical, vision, dental, prescription) iv. _____ Unemployment Compensation v. _____ Workers’ Compensation vi. _____ Other - please describe: __________________________________________ b. _____ Does the entity self-insure as an individual program? (yes/no) i. _____If answered YES, does the entity allow another separate legal entity into its self- insurance program(s)? (yes/no) For example, employees of a different organization participate in a health and welfare program of a city. If so, list the entity or entities: ___________________________________________ c. _____ Does the entity self-insure as a joint program? (yes/no) i. _____ If answered YES, list the other member(s): ____________________________ 29 2. _____ Does the entity administer its own claims? (yes/no) 3. _____ Does the entity contract with a third party administrator for claims administration? (yes/no) 4. _____ Did the entity receive a claims audit in the last three years, regardless of who administered the claims? (yes/no) 5. _____ Were the program’s revenues sufficient to cover the program’s expenses? (yes/no) 6. _____ Did the program use an actuary to determine its liabilities? (yes/no) 30