HomeMy WebLinkAbout2012 Annual Report1
City of Port Townsend
Notes To The Financial Statements
For the Year Ended December 31, 2012
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 or elected to be accounted for in another fund.
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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.
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.
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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.
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:
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2012
Final AppropriatedActual
Amounts Expenditures Variance
General 6,660,534$ 6,486,448$ 174,086$
Drug Enforcement & Educ Fund 27,288$ 26,288$ 1,000$
Contingency -$ -$ -$
Street 659,198$ 642,624$ 16,574$
Library 997,517$ 953,102$ 44,415$
Public Work & Admin 978,523$ 919,864$ 58,659$
Lodging Tax 317,571$ 314,984$ 2,587$
Fire & EMS Service 2,203,319$ 2,175,321$ 27,998$
Affordable Housing Fund 6,157$ 6,157$ -$
CDBG 132,000$ 61,985$ 70,015$
System Development Chrges 677,000$ 73,412$ 603,588$
Community Services 1,695,661$ 1,632,883$ 62,778$
GO Debt Service 1,166,028$ 1,064,413$ 101,615$
Water/Sewer Utility 4,886,754$ 4,283,002$ 603,752$
Stormwater 774,873$ 625,667$ 149,206$
Utility Construction Fund 1,930,000$ 557,588$ 1,372,412$
Trans line Replacement 1,069,500$ 811,328$ 258,172$
1978 Water Sewer Rev Bond 21,500$ 21,500$ -$
1992/98 WS Revenue Bond Reserve 72,220$ 71,055$ 1,165$
92 Water/Sewer Bond Redemption -$ -$ -$
Equipment Rental 772,223$ 659,922$ 112,301$
Firemen's Pension 64,902$ 53,268$ 11,634$
Memorial Fund -$ -$ -$
Golf Course Fund 18,700$ 7,892$ 10,808$
Maritime Center Fund -$ -$ -$
Capital Improvement 5,706,347$ 4,973,117$ 733,230$
30,837,815$ 26,421,820$ 4,415,995$
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 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.
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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.
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.
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Investments by type at December 31, 2012 are as follows:
Investments
Carrying AmountMarket Value
Washington State Treasurer's Investment Pool6,877,433.79$ 6,877,433.79$
2012 Total Investments6,877,433.79$ 6,877,433.79$
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 2012 was $1.40521 per $1,000.00 on an assessed valuation of
$1,468,539,440 for a total regular levy of $2,063,606.31.
The city also has 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 $734,269.72 in 2012.
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
Voters approved a Fire Lid lift of $.43 per $1,000 for a tax amount of $633,190.31 in 2012.
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 2012. The debt
service payments for the year being reported and future payment requirements, including interest,
are as follows:
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G.O. Bonds Revenue Bonds Other Debt Total Debt
2012
$ 1,044,106
$ 21,500 $ 293,188 $ 1,358,794
2013
$ 1,134,391
$ 20,750 $ 291,535 $ 1,446,676
2014
$ 1,132,606
$ 25,000 $ 289,882 $ 1,447,488
2015
$ 1,138,686
$ 24,000 $ 288,229 $ 1,450,915
2016
$ 1,298,436
$ 23,000 $ 286,576 $ 1,608,012
2017
$ 1,284,566
$ 22,000 $ 284,923 $ 1,591,489
2018-
2038
$20,705,474 $ 21,000 $1,368,191 $22,094,665
Totals $27,738,265 $ 157,250 $3,102,524 $30,998,039
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.
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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
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 $ 125,000
2008 Limited GO Bonds for
construction funds for Civic and
Street Improvements
$7,500,000 4.15-5.00% 2038 $7,500,000
2010 Limited GO Bonds for Street,
Sidewalk, Utilities and Historic
District
$3,740,000 2.30-5.00% 2030 $3,740,000
2012 Limited GO Bonds for Refunding
of 1999 Bonds, a portion of the
2002 GO Bonds, a portion of the
2003 Bonds and the 2005 Bonds
$5,530,000 .50-4.25% 2025 $5,460,000
Total $16,825,000
As of December 31, 2012 the long term debt payable from proprietary fund resources consisted of
the following:
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Issue
Date
Purpose Original Issue Interest
Rate
Maturity
Date
Debt
Outstanding
1978 Water/Sewer Revenue Bonds
Water and Sewer Improvements
$ 395,000 5% 2018 $ 115,000
Total $ 115,000
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 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 six 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, 2012 the long-term debt payable for PWTF and SRF loans consisted of the
following:
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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 $1,86,718 with sale of Tri-Area Assets)
$2,172,055 1% 2018 $ 268,308
1999 PWTF Loan
Gaines St Lift Station
San Juan Sewer Trunk Line
$1,434,365 1% 2019 $ 417,163
2001 PWTF Loan
Wastewater Treatment
Outfall Expansion
Trunk Sewer Line Replacement
$1,153,350 .5% 2021 $ 497,488
2002 PWTF Loan
Morgan Hill Water System
Improvements
$1,242,742 .5% 2022 $ 667,019
2002 SRF Loan
Wastewater Conveyance
Storm and Sewer Separation
Gaines St Lift Station Phase 2
Trunk Sewer Replacement
$ 856,803 1.5% 2024 $ 557,230
2012 PWTF Loan
City Lake Repair
$1,000,000 .5% 2031 $ 198,568
2012 PWTF Loan
LT2 Federally Mandated
Construction of UV and
Chlorination Water Treatment
Facility
$1,896,000 1.5% 2031 $ 268,937
Total $2,874,713
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C. ADVANCED REFUNDING AND DEFEASED BONDS
In 2012 the City refunded the balance of the 1999 G.O. Bonds and the 2005 G. O. Bonds. As part
of the same refunding $1,505,000 of the 2003 LTGO Bonds were advanced refunded and well as
$2,500,000 of the 2002 LTGO Bonds. The total amount of the 2012 LTGO refunding was
$5,530,000. This refunding saved the City $645,221 over the course of 13 years.
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 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 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
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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
and 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 $750,000, 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.
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.
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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
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.
In April 2012, City Council authorized an interfund loan from the Transmission Line Replacement
Fund to the General Fund in the amount of $100,000 for the purpose of startup funding for the
Main Street excise tax credit program.
The following table displays interfund loan activity during 2012:
Borrowing Lending BalanceNew 2012 Balance
FundFund1/1/2012 Loans Repayments12/31/2012
EMS equip 010500 75,000$ 75,000$ -$
Golf Bldg 199 417 83,508$ -$ 83,508$
Park land 199 417 185,571$ -$ 185,571$
Maint St 10 417 -$ 100,000$ -$ 100,000$
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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. Its purpose was amended to focus solely on the Park.
In 2012 the city paid $63,000 to the FWPDA per an agreement amendment dated February 28,
2012. These expenses were for professional services.
NOTE 13 – EQUIPMENT RENTAL FUND ALLOCATION
During 2012, the City reviewed the Equipment Rental Fund balance and annual contributions.
It was determined that the police department annual contribution was overestimated.
Consequently, the City suspended 52% of the police annual contribution for 2012 and established
an updated contribution plan for 2013.
NOTE 14 – INTERLOCAL AGREEMENT WITH EAST JEFFERSON FIRE RESCUE
On June 20, 2012 the city amended the agreement with East Jefferson Fire Rescue (District) to
reimburse the district for the purchase of a third fire engine. The city will be paying the district a
total of $392,080.77 (which includes interest). The payment schedule is as follows:
InterestPrincipalYr Total
5/31/2013 11,320$ 11,320$
5/31/2014 11,320 11,320
5/31/2015 9,883 177,199 187,082
5/31/2016 2,615 179,744 182,359
Totals35,137$ 356,943$ 392,080$
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BARS Code
Beginning Cash and Investments
30810 Beg Fund Bal-Reserved
30880 Beg Fund Bal-Unreserved
38880/58880 Prior Period Adjustments, net
Operating Revenues
310 Taxes
320 Licenses & Permits
330 Intergovernmental Revenues
340 Charges for Goods and
Services
350 Fines & Penalties
360 Miscellaneous Revenues
Total Operating Revenues:
Operating Expenditures
510 General Government
520 Public Safety
530 Utilities And Environment
540 Transportation
550 Economic Environment
560 Mental & Physical Health
570 Culture And Recreation
598 Intergovernmental Payments
Total Operating Expenditures:
Net Operating Increase (Decrease):
Nonoperating Revenues
370, 380, 395, 398 Other Financing Sources
391-393 Debt Proceeds
397 Transfers-In
Total Nonoperating Revenues:
Nonoperating Expenditures
580, 596, 599 Other Financing Uses
591-593 Debt Service
594-595 Capital Expenditures
597 Transfers-Out
Total Nonoperating Expenditures:
Increase (Decrease) in Cash and Investments
Ending Cash and Investments
50810 End Fund Bal-Reserved
50880 End Fund Balance-Unreserved
Total for All funds*010 General Fund
101 Drug
Enforcement &
Education
102 Contingency
Fund
3,205,960 0 0 0
6,035,949 32,269 26,542 67,379
0 -14,400 0 0
9,738,038 4,825,898 0 21,169
222,754 221,854 0 0
3,665,528 331,488 0 0
6,907,237 1,312,840 0 0
92,888 83,922 0 0
975,345 15,991 27 124
21,601,790 6,791,993 27 21,293
2,668,924 1,642,101 0 0
5,005,886 2,830,565 0 0
4,608,558 0 0 0
903,332 0 0 0
861,223 599,298 0 0
0 0 0 0
2,141,799 16,413 0 0
0 0 0 0
16,189,722 5,088,377 0 0
5,412,068 1,703,616 27 21,293
426,533 100,000 0 0
467,505 0 0 0
1,933,098 26,288 0 0
2,827,136 126,288 0 0
181,709 75,687 0 0
1,382,141 4,500 0 0
6,323,580 2,549 0 0
1,933,098 1,319,326 26,288 0
9,820,528 1,402,062 26,288 0
-1,581,324 427,842 -26,261 21,293
3,021,466 0 0 0
4,649,204 445,703 281 88,672
For the Year Ended December 31, 2012
FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS
STATEMENT C-4Port Townsend, City ofMCAG NO.0364
The accompanying notes are an integral part of this Statement.
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BARS Code
Beginning Cash and Investments
30810 Beg Fund Bal-Reserved
30880 Beg Fund Bal-Unreserved
38880/58880 Prior Period Adjustments, net
Operating Revenues
310 Taxes
320 Licenses & Permits
330 Intergovernmental Revenues
340 Charges for Goods and
Services
350 Fines & Penalties
360 Miscellaneous Revenues
Total Operating Revenues:
Operating Expenditures
510 General Government
520 Public Safety
530 Utilities And Environment
540 Transportation
550 Economic Environment
560 Mental & Physical Health
570 Culture And Recreation
598 Intergovernmental Payments
Total Operating Expenditures:
Net Operating Increase (Decrease):
Nonoperating Revenues
370, 380, 395, 398 Other Financing Sources
391-393 Debt Proceeds
397 Transfers-In
Total Nonoperating Revenues:
Nonoperating Expenditures
580, 596, 599 Other Financing Uses
591-593 Debt Service
594-595 Capital Expenditures
597 Transfers-Out
Total Nonoperating Expenditures:
Increase (Decrease) in Cash and Investments
Ending Cash and Investments
50810 End Fund Bal-Reserved
50880 End Fund Balance-Unreserved
110 Street 120 Library Fund 150 Lodging Tax 171 Fire and EMS
0 0 0 0
20,034 109,536 36,188 10,472
0 0 0 0
471,830 967,713 350,091 2,204,556
0 0 0 0
192,979 11,571 0 0
400 0 0 0
0 8,966 0 0
724 5,008 276 0
665,933 993,258 350,367 2,204,556
0 0 28,870 0
0 0 0 2,175,321
0 0 0 0
447,256 0 0 0
0 0 182,413 0
0 0 0 0
0 838,211 0 0
0 0 0 0
447,256 838,211 211,283 2,175,321
218,677 155,047 139,084 29,235
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 25 0 0
0 0 0 0
0 99,865 0 0
195,370 15,000 103,701 0
195,370 114,890 103,701 0
23,307 40,157 35,383 29,235
0 0 0 0
43,344 149,694 71,571 39,707
The accompanying notes are an integral part of this Statement.
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BARS Code
Beginning Cash and Investments
30810 Beg Fund Bal-Reserved
30880 Beg Fund Bal-Unreserved
38880/58880 Prior Period Adjustments, net
Operating Revenues
310 Taxes
320 Licenses & Permits
330 Intergovernmental Revenues
340 Charges for Goods and
Services
350 Fines & Penalties
360 Miscellaneous Revenues
Total Operating Revenues:
Operating Expenditures
510 General Government
520 Public Safety
530 Utilities And Environment
540 Transportation
550 Economic Environment
560 Mental & Physical Health
570 Culture And Recreation
598 Intergovernmental Payments
Total Operating Expenditures:
Net Operating Increase (Decrease):
Nonoperating Revenues
370, 380, 395, 398 Other Financing Sources
391-393 Debt Proceeds
397 Transfers-In
Total Nonoperating Revenues:
Nonoperating Expenditures
580, 596, 599 Other Financing Uses
591-593 Debt Service
594-595 Capital Expenditures
597 Transfers-Out
Total Nonoperating Expenditures:
Increase (Decrease) in Cash and Investments
Ending Cash and Investments
50810 End Fund Bal-Reserved
50880 End Fund Balance-Unreserved
180 Affordable
Housing Fund
190 Comm Dev
Block Grants
195 System Dev
Charges
199 Community
Services
0 0 11,250 0
0 177,383 892,878 80,191
0 0 0 0
10,080 0 0 610,361
0 0 0 0
0 13,376 0 0
0 0 0 91,910
0 0 0 0
1 269 1,695 18,778
10,081 13,645 1,695 721,049
0 0 0 333,919
0 0 0 0
0 0 0 0
0 0 0 0
6,157 61,985 0 11,370
0 0 0 0
0 0 0 1,287,175
0 0 0 0
6,157 61,985 0 1,632,464
3,924 -48,340 1,695 -911,415
0 0 109,383 1,563
0 0 0 0
0 0 0 857,437
0 0 109,383 859,000
0 0 0 0
0 0 0 0
0 0 0 421
0 0 73,413 0
0 0 73,413 421
3,924 -48,340 37,665 -52,836
0 0 0 0
3,925 129,043 941,793 27,356
The accompanying notes are an integral part of this Statement.
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BARS Code
Beginning Cash and Investments
30810 Beg Fund Bal-Reserved
30880 Beg Fund Bal-Unreserved
38880/58880 Prior Period Adjustments, net
Operating Revenues
310 Taxes
320 Licenses & Permits
330 Intergovernmental Revenues
340 Charges for Goods and
Services
350 Fines & Penalties
360 Miscellaneous Revenues
Total Operating Revenues:
Operating Expenditures
510 General Government
520 Public Safety
530 Utilities And Environment
540 Transportation
550 Economic Environment
560 Mental & Physical Health
570 Culture And Recreation
598 Intergovernmental Payments
Total Operating Expenditures:
Net Operating Increase (Decrease):
Nonoperating Revenues
370, 380, 395, 398 Other Financing Sources
391-393 Debt Proceeds
397 Transfers-In
Total Nonoperating Revenues:
Nonoperating Expenditures
580, 596, 599 Other Financing Uses
591-593 Debt Service
594-595 Capital Expenditures
597 Transfers-Out
Total Nonoperating Expenditures:
Increase (Decrease) in Cash and Investments
Ending Cash and Investments
50810 End Fund Bal-Reserved
50880 End Fund Balance-Unreserved
200 G.O. Debt
Service
301 General CIP
Projects
411 Water Sewer
Fund 412 Storm Fund
0 0 3,194,710 0
113,581 2,385,779 957,220 489,679
0 14,400 0 0
101,811 174,529 0 0
0 0 900 0
0 2,732,076 384,038 0
0 0 4,046,224 520,016
0 0 0 0
593 91,373 51,776 762
102,404 2,997,978 4,482,938 520,778
-193 0 491,334 0
0 0 0 0
0 0 3,215,666 480,774
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
-193 0 3,707,000 480,774
102,597 2,997,978 775,938 40,004
0 0 10,219 0
0 0 467,505 0
875,960 0 173,413 0
875,960 0 651,137 0
0 0 105,997 0
1,064,606 0 313,035 0
0 4,773,118 1,264,034 144,893
0 200,000 0 0
1,064,606 4,973,118 1,683,066 144,893
-86,049 -1,975,140 -255,991 -104,889
0 0 3,021,466 0
27,533 425,039 884,559 384,789
The accompanying notes are an integral part of this Statement.
19
BARS Code
Beginning Cash and Investments
30810 Beg Fund Bal-Reserved
30880 Beg Fund Bal-Unreserved
38880/58880 Prior Period Adjustments, net
Operating Revenues
310 Taxes
320 Licenses & Permits
330 Intergovernmental Revenues
340 Charges for Goods and
Services
350 Fines & Penalties
360 Miscellaneous Revenues
Total Operating Revenues:
Operating Expenditures
510 General Government
520 Public Safety
530 Utilities And Environment
540 Transportation
550 Economic Environment
560 Mental & Physical Health
570 Culture And Recreation
598 Intergovernmental Payments
Total Operating Expenditures:
Net Operating Increase (Decrease):
Nonoperating Revenues
370, 380, 395, 398 Other Financing Sources
391-393 Debt Proceeds
397 Transfers-In
Total Nonoperating Revenues:
Nonoperating Expenditures
580, 596, 599 Other Financing Uses
591-593 Debt Service
594-595 Capital Expenditures
597 Transfers-Out
Total Nonoperating Expenditures:
Increase (Decrease) in Cash and Investments
Ending Cash and Investments
50810 End Fund Bal-Reserved
50880 End Fund Balance-Unreserved
500 Equipment
Rental 540 PW Admin 555 Engineering
Services
0 0 0
615,278 21,540 0
0 0 0
0 0 0
0 0 0
0 0 0
7,009 254,212 674,626
0 0 0
787,948 0 0
794,957 254,212 674,626
172,893 0 0
0 0 0
0 246,217 665,901
456,076 0 0
0 0 0
0 0 0
0 0 0
0 0 0
628,969 246,217 665,901
165,988 7,995 8,725
205,368 0 0
0 0 0
0 0 0
205,368 0 0
0 0 0
0 0 0
30,954 0 7,746
0 0 0
30,954 0 7,746
340,402 7,995 979
0 0 0
955,682 29,535 979
The accompanying notes are an integral part of this Statement.
20
BARS Code Total for All funds 601 Refundable
Deposits
610 Firemen's
Pension and Relief
613 Court -
Agency
308 Beginning Cash and
Investments
403,146 69,952 283,329 18,956
388 and 588 Prior Period Adjustments, net 0 0 0 0
310-360 Revenues 50,291 0 34,808 0
370-390 Other Increases and Financing
Sources
77,575 11,850 0 65,725
510-570 Expenditures 61,159 0 53,268 0
580-590 Other Decreases and
Financing Uses
67,040 15,338 0 51,702
Increase (Decrease) in Cash and Investments -333 -3,488 -18,460 14,023
508 Ending Cash and Investments 402,812 66,464 264,869 32,978
BARS Code 621 Memorial 623 Golf Course
Fund
308 Beginning Cash and
Investments
2,490 28,419 0 0
388 and 588 Prior Period Adjustments, net 0 0 0 0
310-360 Revenues 4 15,479 0 0
370-390 Other Increases and Financing
Sources
0 0 0 0
510-570 Expenditures 0 7,891 0 0
580-590 Other Decreases and
Financing Uses
0 0 0 0
Increase (Decrease) in Cash and Investments 4 7,588
508 Ending Cash and Investments 2,494 36,006 0 0
For the Year Ended December 31, 2012
FIDUCIARY FUND RESOURCES AND USES ARISING FROM CASH TRANSACTIONS
STATEMENT C-5Port Townsend, City ofMCAG NO.0364
The accompanying notes are an integral part of this Statement.
21
Debt Type ID. No.Description Beginning Balance
January 1, 2012
Additions Reductions BARS Code
for Redemption
of Debt Only
Ending Balance
December 31, 2012
Maturity/Payment
Due Date
General Obligations
251.11 1999 bond 220,000 0 220,000 59119 012/1/2016
251.11 2002 Bond 2,635,000 0 2,635,000 59119 012/1/2022
251.11 2003 Bond 1,750,000 0 1,625,000 59119 125,00012/1/2023
251.11 2005 Bond 1,360,000 0 1,360,000 59119 012/1/2025
263.81 PWTF Loan 20,500 0 20,500 59173 07/1/2012
251.11 2008 Bond 7,500,000 0 0 59119 7,500,00012/1/2038
251.11 2010 Bond 3,740,000 0 0 59119 3,740,00012/1/2030
251.11 2012 Refunding Bond 0 5,530,000 70,000 59119 5,460,00012/1/2025
251.11 EASJFIRE Equipment Loan 0 392,080 0 59111 392,0805/31/2016
259.11 Compensated Absences 450,509 0 14,832 435,677
17,676,009 5,922,080 5,945,332 17,652,757Total General Obligations:
Revenue Obligations
252.11 1978 Water Revenue Bond 130,000 0 15,000 58234 115,0003/1/2018
263.82 DOE Wastewater 599,311 0 42,081 58235 557,23010/31/2023
263.82 1998 PWTF Loan 313,026 0 44,718 58234 268,3087/1/2018
263.82 1999 PWTF Loan 476,758 0 59,595 58235 417,1637/1/2019
City of Port Townsend
For the year ended December 31, 2012
Schedule of Liabilities
0364MCAG NO.Schedule 09
22
Debt Type ID. No.Description Beginning Balance
January 1, 2012
Additions Reductions BARS Code
for Redemption
of Debt Only
Ending Balance
December 31, 2012
Maturity/Payment
Due Date
263.82 2001 PWTF Loan 552,766 0 55,276 58235 497,4907/1/2021
263.82 2002 PWTF Loan 733,721 0 66,702 58235 667,0197/1/2022
263.82 2012 PWTF Loan LT2 0 268,938 0 58234 268,9386/1/2023
263.82 2012 PWTF Loan City Lake 0 198,568 0 58234 198,5686/1/2031
259.12 Compensated Absences 105,675 2,291 0 107,966
2,911,257 469,797 283,372 3,097,682Total Revenue Obligations:
20,750,4396,228,7046,391,87720,587,266Total Liabilities:
City of Port Townsend
For the year ended December 31, 2012
Schedule of Liabilities
0364MCAG NO.Schedule 09
23
For the Year Ended December 31, 2012
City/Town
SCHEDULE OF STATE FINANCIAL ASSISTANCE
Schedule 16City of Port TownsendMCAG NO.0364
Grantor Program Title Identificaton Number Amount
3340180 - Military Department
Emergency Management E10-132 141,480
Emergency Management E11-211 146,491
Sub-total:287,971
3340350 - Traffic Safety Commission
SZ Flashing Light SA1553 5,399
Sub-total:5,399
Grand total:293,370
Report generated 5/29/2013 Page: 1
24
0364MCAG NO.City of Port Townsend Schedule 16
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2012
Federal Agency
Name/Pass-Through
Agency Name
Federal Program
Name
CFDA
Number
Other
Award
I.D.
Number
Expenditures Foot Note Ref.
From Pass-
Through
Awards
From Direct
Awards
Total Amount
Dept of Interior/Save America's
Treasures
15-929 53-10-AP-
5025
11,052 11,052
Dept. of Justice/STOP 16-588 2011-WF-
AX-0056
6,200 6,200
Dept. of Justice/Encourage Arrest
Policies and
Enforcement of
Protection Orders
16-590 2010-WE-
AX-0020
145,018 145,018 3
Dept. of Justice/Public Safety
Partnership &
Community
Polciing
16-710 2012-UM-
WX-0173
24,000 24,000
Employment Training
Administration,
Department Of
Labor/OAAA
Senior Community
Service
Employment
Program
17.235 Olympic
Area
11,216 11,216
Dept. of
Transportation/FHWA
Highway Planning
& Construction
Recovery
20-205 LA-7571 248,500 248,500
Report generated 5/29/2013
25
EPA/Public works Board State Public Water
System
Supervision
66-468 DM12-952-
092
69,527 69,527
Dept of Homeland
Security/Wa State
MIlitary Dept.
Hazard Mitigation
Grant/FEMA
97-039 FEMA-1734
-DR-WA
848,883 848,883
Dept of Homeland
Security/WA state
Military Dept.
Hazard Mitigation
Grant/FEMA
97-039 FEMA-1825
-DR-WA
878,943 878,943
Total CFDA 97-039 1,727,826 0 1,727,826
Dept of Homeland
Security/WA State
Military Dept.
Pre-Disaster
Mitigation
97-047 E12-175 469,886 469,886
Dept. of Homeland
Security/WA State
Military Dept.
Pre-Disaster
Mitigation
97-047 E10-115 322,318 322,318
Total CFDA 97-047 792,204 0 792,204
Total Federal Awards Expended: 2,849,273 186,270 3,035,544
Report generated 5/29/2013
26
MCAG (0364)Schedule 10
City of Port Townsend
Schedule of Limitation of Indebtedness
As of December 31, 2012
Remaining Debt
Total Taxable Property Value 1,468,539,440$ Capacity
2.5% General purpose limit is allocated between:36,713,486
Up to 1.5% debt without a vote 22,028,092
Less: Outstanding Debt 17,217,080
Less: Excess of Debt with a Vote 0
Add: Available Assets 27,533
Equals remaining debt capacity without a vote $4,838,545
Up to 2.5% debt with a vote 19,523,939
14,685,394
Less: Outstanding Debt 0
Add: Available Assets
Equals remaining debt capacity with a vote $19,523,939
2.5% Utility purpose limit, voted 36,713,486
Less: Outstanding Debt
Less: Contracts Payable
Add: Available Assets
Equals remaining debt capacity- Utility purpose, voted $36,713,486.00
2.5% Open Space, park & capital facilities, voted 36,713,486
Less: Outstanding Debt
Less: Contracts Payable
Add: Available Assets
Equals remaining debt capacity - Open space, park & capital facilites voted $36,713,486.00
27
MCAG No 0364 CITY OF PORT TOWNSEND Schedule 11
SCHEDULE OF DISBURSEMENT ACTIVITY
For the Fiscal Year ended December 31, 2012
1 2 3 4 5 6 7 8 9 10 11 12 13
Fund No.Fund Title
Beginning Cash &
Investments
Receipts (less transfers-
in)Transfers-In Other Revenue Netted Transactions Total Increase (4+5+6-
7)Disbursements Transfers-Out Other Expenditures Total Decrease
(9+10+11-7)
Ending Cash &
Investments
(3+8-12)
010 Current Expense 32,269.00 5,630,921.33 1,272,962.93 6,903,884.26 4,917,317.66 1,569,130.42 6,486,448 449,705.18
101 Drug Enforcement & Education 26,541.72 26.93 26.93 0.00 26,288.00 26,288 280.65
102 Contingency Fund 67,379.76 21,293.24 21,293.24 0.00 - 88,673.00
110 Street 20,038.29 665,933.74 665,933.74 350,253.10 292,370.52 642,624 43,348.41
120 Library Fund 109,535.36 993,258.84 993,258.84 788,678.07 164,423.88 953,102 149,692.25
140 PW Admin & Eng Fund 21,540.11 0.00 254,211.84 254,211.84 229,338.72 16,878.24 246,217 29,534.99
150 Lodging Tax 36,188.22 350,366.51 350,366.51 182,412.65 132,570.96 314,984 71,571.12
171 Fire and EMS 10,472.36 2,204,555.67 2,204,555.67 2,175,320.61 2,175,321 39,707.42
180 Affordable Housing 10,081.65 10,081.65 6,156.73 6,157 3,924.92
190 Comm Dev Block Grant 177,383.22 13,644.57 13,644.57 61,984.67 61,985 129,043.12
195 System Development Charge 904,126.98 111,078.35 111,078.35 0.00 73,412.46 73,412 941,792.87
199 Community Services 80,191.01 722,611.13 857,437.26 1,580,048.39 1,477,076.83 155,806.32 1,632,883 27,356.25
200 G.O. Debt Service 113,581.50 102,404.54 875,959.92 978,364.46 1,064,413.18 1,064,413 27,532.78
301 Capital Improvement Fund -483,217.05 663,691.27 636,286.88 1,299,978.15 1,069,552.62 251,768.67 1,321,321 -504,560.19
304 Street Vacation Proceeds 122,655.00 0.00 0.00 0.00 - 122,655.00
305 CIP Street -550,210.82 2,345,645.44 1,815,005.01 4,160,650.45 3,114,193.65 537,602.48 3,651,796 -41,356.50
308 2008 GO Bond Proceeds 251,107.14 252.26 252.26 0.00 134,151.30 134,151 117,208.10
310 2010 GO Bond Fund 3,045,443.22 2,789.99 2,789.99 0.00 2,317,140.59 2,317,141 731,092.62
411 Water - Sewer 834,632.63 4,103,503.82 171,054.83 4,274,558.65 3,016,797.79 1,266,204.33 4,283,002 826,189.16
412 Storm and Surface Water 489,677.85 520,777.36 520,777.36 447,077.55 178,589.60 625,667 384,788.06
415 Water - Sewer/CIP Fund 3,384.46 268,937.17 285,267.10 554,204.27 428,922.50 128,665.93 557,588 0.30
417 56 Trans Line Replacement 3,194,710.45 588,084.38 50,000.00 638,084.38 529,952.95 281,375.42 811,328 3,021,466.46
419 78 Water Revenue Bonds Red 48,102.56 49.70 21,500.04 21,549.74 21,500.00 21,500 48,152.30
424 92/98 W/S Rev Bond Reserve 70,977.39 77.44 77.44 0.00 71,054.83 71,055 0.00
426 92 W/S Revenue Bond Red 5,608.93 9.78 9.78 0.00 - 5,618.71
500 Equipment Rental 615,317.77 142,797.50 857,528.64 1,000,326.14 543,569.01 116,353.20 659,922 955,721.70
555 Engineering Services 20,605.66 654,020.03 674,625.69 648,823.60 24,823.52 673,647 978.57
601 Refundable Deposits 69,951.41 11,850.00 11,850.00 15,337.90 15,338 66,463.51
610 Fireman's Pension and Relief 283,329.05 34,808.13 34,808.13 44,153.99 9,113.87 53,268 264,869.32
613 Court-Agency 18,956.28 65,724.90 65,724.90 51,702.80 51,703 32,978.38
621 Memorial 2,490.47 3.62 3.62 0.00 - 2,494.09
623 Golf Course 28,418.91 15,479.04 15,479.04 6,191.49 1,700.04 7,892 36,006.42
631
9,650,583.18 19,611,263.96 7,751,234.48 27,362,498.44 21,190,728.07 7,749,424.58 28,940,152.65 8,072,928.97
28
MCAG NO. 0364 City of Port Townsend Schedule 21
LOCAL GOVERNMENT RISK-ASSUMPTION
For the Year Ended December 31, 2012
Program Manager: __David Timmons, City Manager
Address: 250 Madison St., Suite 200
Phone: 360-379-5043
Email: Dtimmons@cityofpt.us
1. _yes___ 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. __X__ Unemployment Compensation
v. _____ Workers’ Compensation
vi. _____ Other - please describe: __________________________________________
b. _yes___ 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)? (/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. NO__ Does the entity administer its own claims?
3. YES _ Does the entity contract with a third party administrator for claims administration?
4. n/a-___ 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. _n/a____ Did the program use an actuary to determine its liabilities? (yes/no)
30