HomeMy WebLinkAboutCity of Oak Ridge - Public Financial Report Annual Comprehensive Financial Report
City of Oak Ridge, Tennessee
For the Fiscal Year Ended
june 30, 2022
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,
C I T Y O F
T E N N E S S E E
WWW.OAKRIDGETN.GOV
CITY OF OAK RIDGE, TENNESSEE
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2022
Prepared by
FINANCE DEPARTMENT
CITY OF OAK RIDGE, TENNESSEE
TABLE OF CONTENTS
For the Year Ended 7une 30, 2022
Page
Introductory Section -Unaudited
Letter of Transmittal i
GFOA Certificate of Achievement viii
Organizational Chart ix
City Officials x
Financial Section
Report of Independent Auditors A-1
Management Discussion and Analysis B-1
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position C-1
Statement of Activities C-3
Fund Financial Statements:
Balance Sheet—Governmental Funds C-4
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position C-5
Statement of Revenues, Expenditures and Changes in Fund Balances—
Governmental Funds C-6
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities C-7
Statement of Revenues, Expenditures and Changes in Fund Balances—Budget
and Actual—General Fund C-8
Statement of Revenues, Expenditures and Changes in Fund Balances—Budget
and Actual—General Purpose School Fund C-9
Statement of Net Position—Proprietary Funds C-10
Statement of Revenues, Expenses and Changes in Net Position—Proprietary
Funds C-11
Statement of Cash Flows—Proprietary Funds C-12
Statement of Net Position—Fiduciary Funds C-14
Statement of Changes in Net Position—Fiduciary Funds C-15
Notes to Financial Statements C-16
Reguired Supplementary Information:
Schedule of Changes in Oak Ridge's Net Pension Liability (Asset) and Related
Ratios Based on Participation in the Public Employee Pension Plan of the
TCRS D-1
Schedule of Oak Ridge Contributions Based on Participation in the Public
Employee Pension Plan of the TCRS D-2
Schedule of Changes in Oak Ridge Schools Net Pension Liability (Asset) and
Related Ratios Based on Participation in the Public Employee Pension Plan of
the TCRS D-3
Schedule of Oak Ridge Schools Contributions Based on Participation in the
Public Employee Pension Plan of the TCRS D-4
CITY OF OAK RIDGE, TENNESSEE
TABLE OF CONTENTS
(continued)
For the Year Ended 7une 30, 2022
Financial Section (continued)
Reguired Supplementary Information (continued):
Schedule of Oak Ridge Schools Proportionate Share of the Net Pension Asset
Based on Participation in the Teacher Retirement Plan of the TCRS D-5
Schedule of Oak Ridge Schools Contributions Based on Participation in the
Teacher Retirement Plan of the TCRS D-5
Schedule of Oak Ridge Schools Proportionate Share of the Net Pension Liability
(Asset) Based on Participation in the Teacher Legacy Pension Plan of the
TCRS D-6
Schedule of Oak Ridge Schools Contributions Based on Participation in the
Teacher Legacy Pension Plan of the TCRS D-6
Schedule of Changes in Oak Ridge Board of Education Hybrid with Cost
Controls' Net Pension Liability (Asset) and Related Ratios Based on
Participation in the Public Employee Pension Plan of the TCRS D-7
Schedule of Oak Ridge Board of Education Hybrid with Cost Controls'
Contributions Based on Participation in the Public Employee Pension Plan of
the TCRS D-8
Schedule of Changes in Total OPEB Liability and Related Ratios Based on
Participation in the TGOP OPEB Plan—City Employees D-9
Schedule of Changes in Total OPEB Liability and Related Ratios Based on
Participation in the TGOP OPEB Plan— School Employees D-10
Schedule of Changes in Total OPEB Liability and Related Ratios Based on
Participation in the TNP OPEB Plan— School Employees D-11
Other Supplementary Information:
Combining Balance Sheet—Nonmajor Governmental Funds E-2
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
—Nonmaj or Governmental Funds E-3
Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and
Actual (Budgetary Basis):
State Street Aid Fund E-4
Drug Enforcement Program Fund E-5
Solid Waste Fund E-6
Other Education Special Revenue Fund E-7
Extended School Program Fund E-8
Central Cafeteria Fund E-9
Schedule of Revenues, Expenses and Changes in Net Position—Budget and
Actual (Budgetary Basis)—Emergency Communications District Fund E-10
Combining Statements of Net Position—Internal Service Funds E-12
Combining Statements of Revenues, Expenses and Changes in Net Position—
Internal Service Funds E-13
Combining Statements of Cash Flows—Internal Service Funds E-14
Schedule of Revenues—General Fund E-16
Schedule of Expenditures by Function—General Fund E-20
CITY OF OAK RIDGE, TENNESSEE
TABLE OF CONTENTS
(continued)
For the Year Ended 7une 30, 2022
Financial Section (continued)
Other Supplementary Information (continued):
Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and
Actual (Budgetary Basis):
Capital Projects Fund E-23
Debt Service Fund E-24
School Federal Projects Fund E-25
Schedule of Water Treatment Plant Operational Expenses and Capital
Expenditures E-26
General Obligation Bonds Principal and Interest Requirements by Fiscal Year—
Governmental Activities E-27
Note Principal and Interest Requirements by Fiscal Year—Governmental
Activities E-29
Bond Principal and Interest Requirements by Fiscal Year:
Electric Fund E-30
Waterworks Fund E-32
Emergency Communications District Fund E-34
Note Principal and Interest Requirements by Fiscal Year:
Electric Fund E-35
Waterworks Fund E-36
Leases - Principal and Interest Requirements by Fiscal Year—Governmental
Activities E-38
Schedule of Changes in Long-Term Debt by Individual Issue E-39
Schedule of Changes in Lease Obligations E-42
Statistical Section—Unaudited
Table of Contents F-1
Net Position by Component F-3
Changes in Net Position F-4
Fund Balances, Governmental Funds F-6
Changes in Fund Balances, Governmental Funds F-7
Tax Revenue by Source, Governmental Funds F-8
Assessed and Estimated Actual Value of Taxable Property F-9
Property Tax Rates—Direct and Overlapping Governments F-10
Principal Property Taxpayers F-11
Property Tax Levies and Collections F-12
Schedule of Changes in Property Tax Receivables F-13
Local Taxable Sales by Category F-14
Direct and Overlapping Sales Tax Rates F-15
Ratios of Outstanding Debt by Type F-16
Ratios of General Bonded Debt Outstanding F-17
Computation of Direct and Overlapping Debt F-18
Pledged- Revenue Coverage F-19
Demographic Statistics F-20
Principal Employers F-21
Full-Time Equivalent City Government Employees by Function F-22
Operating Indicators by Function/Program F-24
CITY OF OAK RIDGE, TENNESSEE
TABLE OF CONTENTS
(continued)
For the Year Ended 7une 30, 2022
Statistical Section—Unaudited (continued)
Capital Assets Statistics by Function/Program F-26
Revenues for Electric and Waterworks Funds F-27
Electric, Water and Wastewater Rates F-28
Electric, Water and Wastewater Customers by Type F-29
Ten Largest Electric Customers F-30
Single Audit Section
Schedule of Expenditures of Federal Awards and State Financial Assistance G-1
Notes to the Schedule of Expenditures of Federal Awards and State Financial
Assistance G-5
Report of Independent Auditors on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards G-6
Report of Independent Auditors on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance G-8
Schedule of Findings and Questioned Costs G-11
Management's Corrective Action Plan G-13
— OFFICE OF THE CITY MANAGER
C I T Y O F
(865)425-3550
OAKRIDGE
January 10, 2022
Honorable Mayor,
Members of the City Council and
Citizens of the City of Oak Ridge, Tennessee
The Annual Comprehensive Financial Report (ACFR) of the City of Oak Ridge, Tennessee, for
the fiscal year ended June 30, 2022, is hereby submitted. The financial statements are presented
in conformity with generally accepted accounting principles (GAAP) as set forth by the
Governmental Accounting Standards Board (GASB) and have been audited in accordance with
generally accepted auditing standards by a firm of licensed certified public accountants.
This report consists of management's representations concerning the finances of the City of Oak
Ridge. Consequently, management assumes full responsibility for the completeness and
reliability of all of the information presented in this report. To provide a reasonable basis for
making these representations, management of the City of Oak Ridge has established a
comprehensive internal control framework that is designed both to protect the City's assets from
loss, theft or misuse and to compile sufficient reliable information for the preparation of the City
of Oak Ridge's financial statements in conformity with GAAP. Because the cost of internal
controls should not outweigh their benefits, the City of Oak Ridge's comprehensive framework of
internal controls has been designed to provide reasonable rather than absolute assurance that
the financial statements will be free from material misstatement. As management, we assert that,
to the best of our knowledge and belief, this financial report is complete and reliable in all material
respects.
The City of Oak Ridge's financial statements have been audited by Coulter & Justus, PC, a firm
of independent, licensed certified public accountants. The goal of the independent audit was to
provide reasonable assurance that the financial statements of the City of Oak Ridge, for the fiscal
year ended June 30, 2022, are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statements presentation. The independent
auditor concluded, based upon the audit, that there was a reasonable basis for rendering an
unmodified opinion that the City of Oak Ridge's financial statements for the fiscal year ended June
30, 2022 are fairly presented in conformity with GAAP. The independent auditor's report is
presented as the first component of the financial section of this report.
The independent audit of the financial statements of the City of Oak Ridge was part of a broader,
federally mandated "Single Audit"designed to meet the special needs of federal grantor agencies.
The standards governing Single Audit engagements require the independent auditor to report not
only on the fair presentation of the financial statements, but also on the City of Oak Ridge's
internal controls and compliance with legal requirements, with special emphasis on internal
controls and legal requirements involving the administration of federal awards. These reports are
contained in the "Single Audit" section of this report.
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Post Office Box 1�Oal<Ridge,Tennessee 37831-0001
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City of Oak Ridge's MD&A can be found immediately following the
independent auditor's report.
Profile of the City of Oak Ridge
The City of Oak Ridge, incorporated on June 16, 1959, is located in the eastern part of the State,
occupying the southern portion of Anderson County and an eastern portion of Roane County.
The increasing population of Oak Ridge according to the 2020 census is 31,402.
The City of Oak Ridge has unique origins. This area was selected by the United States
government in 1942 as the location for its production plants for uranium-235, a component of the
first atomic bomb. Constructed by the U.S. Corps of Engineers as part of the secret World War
II "Manhattan ProjecY' the early task of the plant was the separation of fissionable uranium-235
from the more stable uranium-238 by an electro-magnetic process. Some 80,000 workers were
hired for emergency construction of the laboratories and offices in the then 56,000-acre site. The
original fenced townsite was built during World War II to house and support facilities for the
employees of the uranium plants. In 1955 Congress passed Public Law 22, which allowed the
Atomic Energy Commission to sell the homes and land to the residents, and to give the City
various municipal facilities if it voted to incorporate. Oak Ridge is approximately 92 square miles
in area and includes the plant and facilities of the U.S. Department of Energy (DOE). Residential,
commercial, and municipal owned portions of the City make up nearly 30 square miles. The
remaining area of the City is owned by the United States Department of Energy.
The City of Oak Ridge is empowered to levy a property tax on both real and personal property
located within its boundaries. The City receives an annual in-lieu of tax payment from DOE on
the acreage owned by the federal government, subject to annual congressional appropriation.
The calculation is based on the land's usage prior to ownership by the federal government and is
therefore valued as if it were agricultural farmland. Federal buildings located on this property are
currently not subject to taxation by the City, with the exception of four newer private facilities
located at the Oak Ridge National Laboratory (ORNL) and the Y-12 complex.
The City is governed by a modified City Manager-Council form of government. The governing
body of the City is a seven-member City Council. Approximately half of the City Council is elected
on a non-partisan basis every two years for a four-year term of office. Following each regular City
election, the City Council elects one of its members as mayor to serve for a two-year period as
ceremonial head of the City and presiding officer of the City Council. Policy-making and legislative
authority are vested in City Council. The Council is responsible, among other things, for passing
ordinances, adopting the budget, appointing committees, and hiring both the City Manager and
the City Attorney. The City Manager is responsible for carrying out the policies and ordinances
of the City Council, oversees the City's day-to-day operations and resources, and appoints heads
of the various departments.
The City is a full-service community, which includes police and fire protection; electric, water and
wastewater services; residential solid waste collection; the construction and maintenance of
highways, streets, and infrastructure; public library, recreational activities, and cultural events.
The Oak Ridge Schools operate under the City Charter and are considered part of the City and,
therefore, has been included as an integral part of the City of Oak Ridge's financial statements.
In addition to general government activities, the City is financially accountable for the Oak Ridge
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Convention and Visitors' Bureau whose activities are reported separately within the City of Oak
Ridge's financial statements. Added in fiscal 2014 was the Oak Ridge Land Bank, which was
allowed for establishment under new state legislation sponsored by the City to reclaim unused,
vacant and/or undesirable land for revitalization. Also included are the activities of the Oak Ridge
Public Schools Education Foundation, Inc., whose primary mission is to enhance, promote and
support the City of Oak Ridge Schools. However, the Oak Ridge Housing Authority, Oak Ridge
Utility District, Oak Ridge Industrial Development Board and the Oak Ridge Health and
Educational Facilities Board have not met the established criteria for inclusion; and, accordingly,
are excluded from this report.
The annual budget serves as the foundation for the City of Oak Ridge's financial planning and
control. The budget preparation process begins in the late summer when City departments begin
the preparation of six-year Capital Improvements Program (CIP) requests for submission to the
Oak Ridge Municipal Planning Commission for review. The program identifies anticipated capital
projects, establishes priorities, and identifies the anticipated source of funding. The CIP, as
developed and approved by the Planning Commission, is submitted for Council's consideration
prior to budget deliberations.
After one or more Council meetings devoted for guidance to the City Manager, the City Manager
submits a proposed budget to the Council for the next fiscal year. As part of the budget
preparation, the City Manager meets with City departments who outline requirements and
challenges related to their departmental operating budgets. The Finance Department quantifies
preliminary budget information, including revenue projections, for preparation of the City
Manager's proposed budget. Prior to the first reading of the budget ordinance, the City Manager
presents the proposed budget for the upcoming fiscal year to City Council at a work session or
Council meeting. The Board of Education also presents the School Funds budget prior to final
reading of the budget ordinance, which includes a request for appropriation of City funds to meet
program obligations. Budget work sessions may be held with City Council during budget
deliberations to provide a detailed review of the proposed operating and capital improvements
budgets. The Council is required to hold a public hearing on the proposed budget and to adopt a
final budget and tax rate prior to the start of the City's fiscal year on July 1. However, if for any
reason an appropriation ordinance is not adopted by July 1, the appropriations for the current year
shall be carried forward for the next fiscal year until the adoption of the new appropriation
ordinance occurs.
The budget is presented by fund, function (e.g., public safety), and department (e.g., police). The
budget is legally appropriated at the fund level. Department heads may make transfers of
appropriations within a department and the City Manager may make transfers of appropriations
between departments. Transfers of appropriation between funds, however, require approval of
City Council. The budget for all governmental funds are legally adopted annually on a basis
consistent with GAAP, except for the Internal School Fund (a special revenue fund), which is not
budgeted. Budget-to-actual comparisons are provided in this report for each individual
governmental fund for which an appropriated annual budget has been adopted. For the general
fund and the general purpose school fund, this comparison is presented on pages C-8 and C-9
as part of the basic financial statements for the governmental funds. For non-major governmental
funds with appropriated annual budgets, this comparison is presented in the governmental fund
subsection of this report, which starts on page E-4. The comparison for the capital projects, debt
service, and school federal projects funds are presented on pages E-23, E-24, and E-25,
respectively.
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Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City of Oak
Ridge operates.
Local Economy.
The City of Oak Ridge continues to supplement its local economy with improvements to our retail
sector, apartment development, housing starts, and new industrial businesses. This strong and
expanding community economy is tied to various initiatives and developments in Oak Ridge,
particularly nuclear related activities. The cooperative partnership with Department of Energy
infrastructure improvements through demolition and environmental cleanup, replacement of
antiquated buildings, advent of the new Uranium Processing Facility and advanced manufacturing
research. Due to these efforts, the Oak Ridge economy has been steady in many areas.
Due to its roots as a governmental facility for the Manhattan Project, the City of Oak Ridge is a
community based on redevelopment, new development and establishing a revitalized central core
to our city. Utilizing a variety of tax incentives and tax increment financing districts, the City has
established significant increases in taxable values to the central city core with the transfer of
lands. Residential and commercial values have significantly increased. Rehabilitation and
reconstruction have yielded a new look, while housing is also established in the core with 216
new apartment units completed adjacent to the retail district and 300 more units are anticipated
in 2023. Additional apartment and commercial units have been approved for startup by the Oak
Ridge Land Bank. Sales and use tax collections continue to be well above historical levels
reflecting strong retail sales as well as tax collections resulting from the construction of the new
Uranium Processing Facility.
Continued engagement with the Department of Energy has occurred beyond the original
partnership for a relocated and updated American Museum of Science and Energy (AMSE).
Subsequently, the City has supported a new K-25 museum located within the second floor of city-
owned Fire Station #4. These two museums have considerably advanced tourism opportunities
and support for the hospitality industry with the community while increasing visitation for the
Manhattan Project National Historical Park located in Oak Ridge. Using these assets, along with
current recreational facilities, Centennial Golf Course, a nationally recognized rowing venue and
hotel support for surrounding rural recreational facilities, the tourism and hospitality markets are
strong and in a continuing state of growth.
Through proper planning review, previously inactive and bankrupt residential developments have
been reactivated. These developments are occurring with both local and national builders. Prior
to this time, the City has only seen minimal development but today has seen over 200 new
housing units in this past fiscal year. The City is on track to meet or exceed this same number in
the coming year and will also see one new development (the Summit) and new construction on
many infilled lots across the city. D. R. Horton and Smithbilt are major developers of these
properties. Forest Creek Village is also a recently reactivated subdivision and open for business.
Due to tighter, congested, and costly markets in rural Knox County, Oak Ridge continues to be
an attractive suburban alternative to newcomers to the region. As a technical example, the new
apartments in downtown are 100% leased and of 90% were leased by people outside of Oak
Ridge, translating to more new residents. This helped lead to the increase in the U.S. Census at
31,402 people, 12°/o increase from the previous census in 2010.
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The City of Oak Ridge has seen the progress on the development of a new general aviation airport
in the Heritage Industrial Park. Once transferred to the City by the Metropolitan Knoxville Airport
Authority in 2019, a partnership is once again occurring with the Department of Energy, the
Community Reuse Organization of East Tennessee (CROET) and Energy Solutions to assemble
the appropriate amount of land for the airport. The City is managing the current 30% design of
the airport, land procurement and the environmental assessment of the same. Target dates for
earliest opening the airport will be late 2025.
Industrially, the city announced the location of Kairos Power to Oak Ridge. This model project
will provide 200 new jobs in the development of a new uranium based small modular reactor.
Based on major federal support, the development of a next generation power unit will be its goal.
Additional room to expand to serve manufacturing demands is also part of this development.
Additional technical innovation improvements will be tied to other projects being examined under
present economic development initiatives. The City has also seen the development of a new
national Hazardous Materials Training Facility. Located in the vicinity of the above projects, Oak
Ridge will be the location for this advanced training for state and federal officials around the
country. Also, the City recently announced the location of the 400 job Triso-X fuel fabrication
facility, providing the next generation of uranium based nuclear fuel.
Looking ahead, the City will begin construction of a new state of the art water production plant to
service both residents and the DOE facilities. The construction project will represent an $80
million investment in the future of this community and will be financed through an EPA WIFIA loan
and State of Tennessee Revolving Fund Loans. Bids have been awarded and construction will
begin in 2023.
The economic future of Oak Ridge can be seen as bright. With numerous missions of the DOE
continuing and upgrading, the city becomes stronger through its initiative to house a capable
technical work force. As a basic need housing options are now available and retail options are
readily available and improving. In the future, continued development in the rehabilitation of
existing infrastructure will be necessary to retain strong property values and the City will
aggressively oppose under valuing. The revamping of the City's Comprehensive Plan will also
play a role in addressing the future of the City.
U.S. Department of Energy.
During fiscal 2008, the City entered a contract with the U.S. Department of Energy (DOE) to
provide services to areas previously served by federal contractors. The City entered into an
agreement with DOE, through their site contractor, to assume fire and emergency medical
response duties for the federal East Tennessee Technology Park (ETTP) site. On October 1,
2007, DOE transferred 2.23 acres of land, the ETTP fire station and firefighting and ambulance
vehicles and equipment to the City to operate this facility. With the completion of the DOE-EM
Vision 2020 Plan, the service levels to DOE facilities has been reduced. On October 1, 2021, the
entered into a 12-month agreement with the National Nuclear Security Administration (NNSA)for
the City to provide paramedical services for a 12-month period for $421,000. This service will
continue for four more years. The City was notified of an award through NNSA of$7,725,955 to
fund the Oak Ridge Fire Department Response Enhancement through September 19, 2026.
The City receives an annual Payment in Lieu-of Tax (PILOT) from DOE, which was $1,694,737
in fiscal 2022. DOE's PILOT payment to the City is based on the number of acres on the federal
reservation (32,259 acres) at a per acre appraisal approved by DOE at the City's property tax
rate. In accordance with the Atomic Energy Commission Act, the land value is assessed based
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on the original usage of the property, which was residential/agricultural farmland when DOE
purchased the land for the WWII effort, rather than the current use of the property. The residential
property tax assessment rate of 25% is therefore used, rather than the 40% rate that would
normally apply to commercial/industrial properties. DOE's remittance is also contingent on the
annual federal appropriation for this payment.
Long-Term Financial Planning.
A major focus at this time is the water and wastewater infrastructure systems. The City is
continuing its improvement to the wastewater collection system and wastewater lift station
rehabilitation and replacement. Due to the core of the City being built at one time as part of the
WWII defense initiative, the City has a significant amount of miles of water and sewer line over
75 years of age.
Over the past 10 years, the City has entered into a series of debt issuances totaling over $41
million to improve the City's wastewater systems. In July of 2022, the City was awarded a
$1,900,000 State Revolving Fund Loan for improvements to the Emory Valley Pumping Station.
Upgrades and improvements are also planned to the water system. The existing water treatment
plant was built during construction of the Manhattan Project facilities in the 1940's and is located
within the federal complex in Oak Ridge, but is operated by the City of Oak Ridge. The water
plant serves both the DOE facilities and the residents and businesses located within the City of
Oak Ridge. DOE is a major water customer with approximately 46% of the City's annual water
plant production being used by DOE facilities. The Water Treatment Plant Project includes the
construction of the new water treatment plant, improvements to the raw water intake system,
including electrical pump system replacement, and construction of a new finished water
transmission line from the plant to the reservoir. Design of the Water Treatment Plant Project has
been completed. Contracts for the construction phase of the Water Treatment Plant are expected
to total $79,393,000.
The Water Treatment Plant Project will be funded primarily from a $20.7 million Water
Infrastructure Finance and Innovation Act (WIFIA) loan and Tennessee State Revolving Fund
(SRF) loans. The City has already been awarded the WIFIA loan with an approximate 38-year
term at a 2.08% interest rate. The WIFIA loan is administered by the Environmental Protection
Agency (EPA) headquarters. The City plans to match the WIFIA loan with SRF loans which will
provide the ultimate funding for the total water treatment plant project. In July of 2022, the City
was awarded a $30 million SRF loan and is in the review process for a $25 million SRF loan to
fund the project. The remaining cost for the project will be funded by other grants. DOE, which
is currently under contract with the City for water service, will participate in the costs related to
the construction of the new water treatment plant.
A number of rate increases have been adopted for both water and wastewater rates since the
major rehabilitation program for projects began in May 2012. A rate study anticipated annual
rate increases for both water and wastewater services to occur through 2020. The City delayed
the next rate study until evaluation and more definitive costs regarding the water treatment plant
could be completed. A new water/wastewater rate study is expected to be completed in early
calendar 2023.
City revenues from local sales and use tax collections were unusually high in fiscals 2010 through
2013 due to expenditures by federal contractors from stimulus grant awards. As federal funding
to local contractors from stimulus awards diminished, the City experienced a decline in local sales
vi
and use tax collections that reached a low point during fiscal 2015 as federal projects transitioned
to new missions including the $6.5 Billion Uranium Processing Facility (UPF). Sales and use tax
collections have subsequently continued to rise from the UPF project and collections from the
new retail business establishments in Oak Ridge. In the General Fund, fiscal 2022 sales tax
collections in the Anderson County portion of Oak Ridge were $3,072,206 above budget due to
increased spending by federal contractors related to the UPF project. As the UPF project nears
completion, collections are expected to decline from an overall perspective for the next couple of
years.
In September 2021, the City issued $8,870,000 in General Obligation Bonds, Series 2021 C of
which 5,900,000 will be used for energy efficiencies at school facilities, $2,625,000 for City
building roof replacements and various building remodels and $960,000 for electric system
improvements. The City's AA+ bond rating was reaffirmed by Standard and Poor's. The 2021 C
Bonds were sold at a premium of$754,779, with issuance costs of$139,779, which included an
underwriter's discount of $59,861, resulting in a final True Interest Cost (TIC) of 1.5689993%.
The bonds mature in 2041.
Awards and Acknowledgements.
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Oak Ridge, Tennessee, for its Annual
Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. This is the
sixty-first consecutive year that the City has achieved this prestigious award and perhaps the
longest award sequence in the United States. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized ACFR.
This report satisfied both generally accepted accounting principles (GAAP) and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
ACFR continues to meet the Certificate of Achievement Program's requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
Preparation of this report was accomplished through the dedicated services of the Finance
Department. We express our appreciation to all who contributed to its preparation. Credit also
must be given to the governing City Council for their unfailing support for maintaining the highest
standards of professionalism in the management of the City of Oak Ridge's finances.
Respectfully submitted,
�.0 �G�e�So-.--�
Dr. ark S. Watson
City Manager
City of Oak Ridge
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11 `G �����'`�
Janice E. McGinnis
Finance Director
vii
�
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Oak Ridge
Tennessee
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
��i�u�,e�w,. P• ���er�%��-C
Executive Director/CEO
viii
ORGANIZATIONAL CHART
City of Oak Ridge, Tennessee
CITIZENS
BOARD OF
CITVJUDGE EDUCATION
Ciry Court Oak Ridge
CINCOUNCIL Schools
BOARDSAN D COMMISSIONS
BeerPerm�it Heallli&Educalional PersonnelAdv�isory
Building&Housing Facilifies RecreafionandParks CITYATTORNEY
CodeAppeals HousingAutliorily Advisory i
Conventionand IndustrialDevelopment SeniorAdvisory �
usitors'Bureau OakRidgeLandBank TradeLicensing i
EnvironmenFal Corporatlon TraficSafetyAdvisory !
QualiryAdvisory OakRidgeMunicipal YouthAdvisory �I
6cploreOakRidge PlanningCommission ZoningAppeals i
LEGAL IN FOR MATION
C ITV C LERK C ITY SERVIC ES
MANAGER
PERSONNEL FINANCE
ECONOMIC Stafionery
D EVELOPMENT Stores
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IX
CITY OF OAK RIDGE, TENNESSEE
CITY OFFICIALS
Mayor
Warren L. Gooch
Members of City Council
Kelly Callison Rick Chinn, Jr.
Jim Dodson Derrick Hammond
Charles J. Hope, Jr. Ellen Smith
Citv Manager
Mark S. Watson
Deputy City Manager
Jack L. Suggs
Department Directors
Wayne Blasius Community Development Director
Ardo Ba Electrical Director
Janice E. McGinnis Finance Director
Travis Solomon Fire Chief
Amy Fitzgerald Information Services Director
Julie Forkner Library Director
Jon Hetrick Parks & Recreation Director
Janice Harris Personnel Director
Robin Smith Police Chief
Patrick Berge Public Works Director
City Attorney City 7udge City Clerk
Tammy M. Dunn Robert A. McNees III Mary Beth Hickman
Board of Education
Keys Fillauer, Chairman
Laura McLean, Vice-Chair
Angi Agle
Benjamin Stephens
Erin Webb
Superintendent of Schools
Bruce Borchers, Ed.D
X
97I7 Cogdill Road phone: (865) 637-4I6i
su�re z°1 � COULTER�'JUSTUS, P.C. fax: ���s� sz�-z�sz
Knoxville,TN 3793Z weh: cj-pc.com
Independent Auditor's Report
Members of the City Council
City of Oak Ridge, Tennessee
Report on Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Oak Ridge, Tennessee (the City), as of and for the year
ended June 30, 2022, and the related notes to the financial statements,which collectively comprise
the City's basic financial statements as listed in the table of contents.
In our opinion, based on our audit and the report of other auditors, the accompanying financial
statements present fairly, in all material respects, the respective financial position of the
governmental activities,the business-type activities,the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information of the City as of June 30,
2022, and the respective changes in financial position and, where applicable, cash flows thereof
and the respective budgetary comparison for the General Fund and General Purpose School Fund
for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
We did not audit the financial statements of the General Purpose School Fund, the School Federal
Projects Fund, the Other Education Special Revenue Fund, the Extended School Program Fund,
the Central Cafeteria Fund, or the Internal School Funds, which represent 46%, 20%, and 54%,
respectively, of the assets, net position, and revenues of the governmental activities of the City.
We did not audit the financial statements of the Oak Ridge Public Schools Education Foundation,
Inc., a discretely presented component unit, which represents 68% and 76%, respectively, of the
assets and net position of the aggregate discretely presented component units. We did not audit the
financial statements of the Scholarship Fund, which represents 100% of the assets, additions, and
net position of the fiduciary funds of the City. Those financial statements were audited by other
auditors whose report thereon has been furnished to us, and our opinions, insofar as they relate to
the amounts included for those funds and component unit, is based solely on the report of the other
auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standa�ds, issued by the Comptroller General of the United States. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for
the Audit of the Financial Statements section of our report. We are required to be independent of
the City, and to meet our ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit.We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.
A-1
� COULTER�JUSTUS, P.C.
Members of the City Council
City of Oak Ridge, Tennessee
Change in Accounting Principle
As discussed in Note 1 to the financial statements, in 2022 the City adopted new accounting
guidance, Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our
opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City's management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City's
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our obj ectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will
always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, fargery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually ar in
the aggregate,they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accardance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the
audit.
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to
those risks. Such procedures include examining, on a test basis, evidence regarding the
amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control. Accordingly,
no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going
concern for a reasonable period of time.
A-2
� COULTER�JUSTUS, P.C.
Members of the City Council
City of Oak Ridge, Tennessee
Auditor's Responsibilities for the Audit of the Financial Statements (continuec�
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages B-1 through B-15 and the required supplementary
information on pages D-1 through D-11 be presented to supplement the basic financial statements.
Such information is the responsibility of management and,although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting far placing the basic financial statements in an appropriate
operational, economic, or historical context. We and other auditors have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries,the basic financial statements,and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The supplementary information section
and schedule of expenditures of federal awards and state financial assistance, as required by the
audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The supplementary information section and the schedule of expenditures of federal awards and
state financial assistance are the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United
States of America by us and the other auditors. In our opinion, the supplementary information
section and the schedule of expenditures of federal awards and state financial assistance are fairly
stated in all material respects in relation to the basic financial statements as a whole.
A-3
� COULTER�JUSTUS, P.C.
Members of the City Council
City of Oak Ridge, Tennessee
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the financial
statements and our auditor's report thereon. Our opinions on the financial statements do not cover
the other information, and we do not express an opinion or any form of assurance thereon. In
connection with our audit of the financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information
and the financial statements, or the other information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an uncorrected material misstatement of the
other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
January 10, 2023, on our consideration of the City's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control over financial reporting
and compliance.
� � j�l�?�LQ� �, �,
Knoxville, Tennessee
January 10, 2023
A-4
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
As management of the City of Oak Ridge, Tennessee (the City) we offer readers of the City's financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended
June 30, 2022. We encourage readers to consider the information presented here in conjunction with
additional information that we have furnished in our letter of transmittal, which can be found on pages
i-viii of this report.
Financial Highlights
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by$265,680,167 (net position). The
unrestricted net position, which represents the amounts available to meet the Ciry's ongoing
obligations to citizens and creditors, was $67,154,899.
• The City's total net position increased by $37,249,469 (16.31%) compared to last fiscal year's
ending net position. The increase is due to program revenues of $155,326,596 and general
revenues of $54,044,839 over expenses of $172,121,966. The City's changes in net position are
detailed on page B-6 of this report.
• Total revenues for governmental activities increased $8,202,505 compared with the prior fiscal
year. The increase includes a $9,022,962 increase in operating grants and contributions which
primarily relates to increased state and federal grants for the Oak Ridge Schools. Capital grants
and contributions increased $793,410 due to increased state and federal grants for capital projects.
Other revenues decreased $2,912,696 due to investment gains on the termination of the City's
interest rate swaps in the prior fiscal year.
• Total revenues for business-type activities increased $5,790,847 compared with the prior fiscal
year. The increase includes a $5,477,631 increase in charges for services primarily due to higher
electricity usage and higher electricity rates.
• As of the close of the current fiscal year, the City's governmental funds reported combined fund
balances of $73,824,459, an increase of $15,643,697 in comparison with the prior year. Of this
amount, $31,152,181, or 42%, is available for spending at the City's discretion (unassigned fund
ba/ance).
• At the end of the current fiscal year, unrestricted fund balance (the total of the committed,
assigned, and unassigned components of fund balance) for the general fund was $31,692,050, or
113% of total general fund expenditures.
• At the end of the current fiscal year, unrestricted fund balance (the total of the committed,
assigned, and unassigned components of fund balance) for the general purpose school fund was
$15,835,071, or 28% of total general purpose school fund expenditures.
Overview of the Financial Statements
The discussion and analysis provided here is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements consist of three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains required supplementary information and other supplementary information intended to furnish
additional detail to support the basic financial statements themselves.
B-1
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Government-wide financial statements. The government-wide�nancialstatementsare designed to
provide readers with a broad overview of the City's finances, in a manner similar to a private-sector
business.
The statement of net position presents financial information on all the City's assets, deferred outFlows of
resources, liabilities and deferred inflows of resources, with the remaining amount reported as netposition.
Over time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The statement of acti�ities presents information showing how the government's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying events
giving rise to the change occurs, regardless of the timing of related cash flows Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental acti�ities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-
type acti�ities). The governmental activities of the City include general government, public safety, public
works, community services, education, and grants. The business-rype activities of the City include electric
distribution, water and wastewater treatment, distribution, and collection, and operation of an emergency
communications district.
The government-wide financial statements include not only the City itself (known as the primary
governmenij and the operations of the Oak Ridge Schools (the Schools), but also the legally separate Oak
Ridge Convention and Visitors Bureau and the Oak Ridge Land Bank for which the City is financially
accountable and the Oak Ridge Public Schools Education Foundation, Inc. whose main purpose is to provide
financial support to the schools. Financial information for these component units are reported separately
from the financial information presented for the primary government itself.
The government-wide financial statements can be found on pages C-1 through C-3 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All funds of the City can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.
Governmenta/ funds Governmental funds are used to account for essentially the same functions
reported as governmental acti�ities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows ofspendable resources, as well as on balances ofspendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government's near-term financing
requirements.
B-2
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmenta/activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities
The City maintains twelve individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the general fund, general purpose school fund, capital projects fund, debt
service fund, and school federal projects fund, all of which are considered to be major funds. Data from
the other seven governmental funds are combined into a single, aggregated presentation. Individual fund
data for each of these nonmajor governmental funds is provided in the form of combining statements as
other supplementary information.
The City adopts an annual appropriated budget for its governmental funds. A budgetary comparison
statement has been provided for the governmental funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages C-4 through C-9 of this report.
Proprietaryfunds,The City maintains two different types of proprietary funds. Enterprise fundsare used
to report the same functions presented as business-type acti�ities in the government-wide financial
statements.The City uses enterprise funds to account for its electric,water and wastewater,and emergency
communications district operations. Internal service funds are an accounting device used to accumulate
and allocate costs internally among the City's various functions. The City uses internal service funds to
account for its pool of equipment and insurance and benefit functions. Because both of these services
predominantly benefit governmental rather than business-type functions, they have been included within
governmentalacti�itiesin the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for electric
distribution and water and wastewater treatment, collection and distribution, both of which are considered
to be major funds of the City, and emergency communication. Conversely, both internal service funds are
combined into a single, aggregated presentation in the proprietary fund financial statements. Individual
fund data for the internal service funds is provided in the form of combining statements as other
supplementary information.
The basic proprietary fund financial statements can be found on pages C-10 through C-13 of this report.
Fiduciaryfunds, Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reported in the government-wide financial statements because
the resources of those funds are notavailable to support the City's own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds. The City maintains one fiduciary fund. The
Scholarship Fund is a private-purpose trust fund used to account for resources legally held in trust for use
of scholarship awards.
The basic fiduciary fund financial statements can be found on pages C-14 and C-15 of this report.
B-3
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Notes to the financial statements. The notes provide additional information that is essential to acquire
a full understanding of the data provided in the government-wide and fund financial statements. The notes
to the financial statements can be found on pages C-16 through C-89 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report
also presents required supplementary information concerning the City's progress in funding its obligations
to provide pension and OPEB benefits to its employees. Required supplementary information can be found
immediately after the notes to the financial statements on pages D-1 through D-11.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal
service funds are presented in othersupplementaryinformation. Combining and individual fund statements
and schedules can be found on pages E-1 through E-25 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position.
In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows
of resources by $265,680,167 at the close of the most recent fiscal year.
Net Position
Governmental activities Business-type activities Total
FY2022 FY2021 FY2022 FY2021 FY2022 FY2021
Currentand otherassets $157,319,648 $108,788,285 $ 41,189,232 $ 32,704,312 $198,508,880 $141,492,597
Capitalassets 149,400,832 143,249,447 173,875,857 176,274,460 323,276,689 319,523,907
Total assets 306,720,480 252,037,732 215,065,089 208,978,772 521,785,569 461,016,504
Deferred outflows of
resources 24,383,411 11,608,550 3,749,455 2,189,138 28,132,866 13,797,688
Long-term liabilities
outstanding 107,435,010 110,689,065 71,028,392 78,849,713 178,463,402 189,538,778
Other liabilities 11,787,389 14,688,157 15,336,207 11,288,937 27,123,596 25,977,094
Totalliabilities 119,222,399 125,377,222 86,364,599 90,138,650 205,586,998 215,515,872
Deferred inflows of
resources 72,766,138 29,688,024 5,885,132 1,179,598 78,651,270 30,867,622
Net position:
Net investment in
capital assets 62,678,596 59,035,572 105,298,625 103,351,975 167,977,221 162,387,547
Restricted 30,548,047 15,641,645 - - 30,548,047 15,641,645
Unrestricted 45,888,711 33,903,819 21,266,188 16,497,687 67,154,899 50,401,506
Totalnetposition $139,115,354 $108,581,036 $126,564,813 $119,849,662 $265,680,167 $228,430,698
B-4
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Current and other assets increased in governmental activities by $48,531,363 from the prior year. Cash
and cash equivalents, including restricted, increased $10,333,460 as a result of increases in operating
grants and contributions. Net pension asset increased $36,370,729 based on the results of an actuarial
valuation.
Capital assets increased in governmental activities by $6,151,385 from the prior year primarily due to
energy efficiency improvements to various school buildings as well as a planning and design project for the
Oak Ridge Airport.
Long-term liabilities, which consist of bonds, notes, leases, compensated absences, net pension liabilities,
and other postemployment benefit liabilities, decreased by $11,075,376 from the previous year for
governmental and business-type activities combined. The decrease is a result of regularly scheduled
principal reductions on existing outstanding debt and an $8,890,003 decrease in the net pension liability.
Other liabilities, which consist of accounts payable, accrued liabilities, and other payables, increased by
$1,146,502 from the previous year for governmental and business-type activities combined. The increase
is a result of a$2,433,434 increase in unearned revenue due to receipt of operating grants and contributions
for which eligibility requirements have not yet been met. This is offset by a $938,232 decrease in accounts
payable.
The largest portion of the City's net position, $167,977,221, reflects its investment in capital assets (e.g.,
land, building, machinery, equipment, vehicles, and infrastructure), net of accumulated depreciation and
less any related outstanding debt that was used to acquire those assets. The City uses these capital assets
to provide a variety of services to citizens. Accordingly, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that
the resources used to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net position, $30,548,047, represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position of
$67,154,899 may be used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year,the City reported positive balances in all three categories of net position
for both the government as a whole, as well as for its separate governmental and business-type activities.
The City's overall net position increased $37,249,469 from the prior fiscal year. The reasons for this overall
increase are discussed in the following sections for governmental activities and business-type activities.
B-5
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Changes in Net Position
Governmental activities Business-type activities Total
FY2022 FY2021 FY2022 FY2021 FY2022 FY2021
Revenues:
Program revenues:
Charges for services $ 6,410,849 $ 5,910,412 $ 79,349,740 $ 73,872,109 $ 85,760,589 $ 79,782,521
Operating grants and
contributions 64,455,008 55,432,046 16,000 16,000 64,471,008 55,448,046
Capital grants and
contributions 4,123,680 3,330,270 971,319 676,133 5,094,999 4,006,403
Generalrevenues:
Property taxes 22,107,139 21,629,212 - - 22,107,139 21,629,212
Other taxes 28,486,002 28,165,537 - - 28,486,002 28,165,537
Other 2,079,526 4,992,222 1,372,172 1,354,142 3,451,698 6,346,364
Total Revenues 127,662,204 119,459,699 81,709,231 75,918,384 209,371,435 195,378,083
Expenses:
General government 2,344,028 2,597,170 - - 2,344,028 2,597,170
Public safety 12,973,376 14,105,549 - - 12,973,376 14,105,549
Public works 7,393,853 10,108,462 - - 7,393,853 10,108,462
Community services 7,801,737 7,969,751 - - 7,801,737 7,969,751
Education 66,405,111 66,375,235 - - 66,405,111 66,375,235
Grants 1,559,283 1,601,878 - - 1,559,283 1,601,878
Interest and fiscal
charges 2,058,288 1,981,368 - - 2,058,288 1,981,368
Electric - - 51,980,050 47,862,227 51,980,050 47,862,227
Waterworks - - 18,856,515 18,986,075 18,856,515 18,986,075
Emergency communication
district - - 749,725 774,446 749,725 774,446
Total expenses 100,535,676 104,739,413 71,586,290 67,622,748 172,121,966 172,362,161
Increase in net position
before transfers 27,126,528 14,720,286 10,122,941 8,295,636 37,249,469 23,015,922
Transfers 3,407,790 3,367,478 (3,407,790) (3,367,478) - -
Increase in net position 30,534,318 18,087,764 6,715,151 4,928,158 37,249,469 23,015,922
Net position,beginning of period,
as previously reported 108,581,036 89,373,819 119,849,662 114,921,504 228,430,698 204,295,323
Prior period restatement - 1,119,453 - - - 1,119,453
Net position,beginning of period,
as restated 108,581,036 90,493,272 119,849,662 114,921,504 228,430,698 205,414,776
Net position,end of period $139,115,354 $108,581,036 $126,564,813 $119,849,662 $265,680,167 $228,430,698
B-6
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Governmental activities. During the current fiscal year, net position for governmental activities
increased $30,534,318 from the prior fiscal year for an ending balance of $139,115,354. The increase in
the overall net position of governmental activities is primarily due to the overall increase in revenues
described below.
Total revenues for governmental activities increased $8,202,505 compared with the prior fiscal year. The
increase includes a $9,022,962 increase in operating grants and contributions which primarily relates to
increased state and federal grants for the Oak Ridge Schools. Capital grants and contributions increased
$793,410 due to increased state and federal grants for capital projects. Other revenues decreased
$2,912,696 due to investment gains on the termination of the City's interest rate swaps in the prior fiscal
year.
Expenses and Program Revenues - Governmental Activities
�o,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000 —
- � � - �
General Public Public Community Education Grants Interest and
Government Safety Works Services Fiscal
Charges
Expenses ■Program Revenues
B-7
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Revenues by Source - Governmental Activities
Other, Chargesfor
$2,079,526 services,
Local sales taxes, � -- $6,410,849
$18,227,867 �
Othertaxes,
$10,258,135�
Property taxes,�
$22,107,139
� Operating grants
Capital grants and and contributions,
contributions,
$4,123,680 $64,455,008
Business-type activities. Overall net position for the current fiscal year for the City's business-type
activities increased to $126,564,813. The total increase in net position for business-type activities was
$6,715,151 or 5.6% from the prior fiscal year. These increases are expected as electric, water and
wastewater rates are established to provide for income to fund debt service payments. Charges for services
increased $5,477,631 compared to the prior fiscal year primarily due to higher electricity usage and higher
electricity rates. Total expenses increased $3,963,542 compared to the prior fiscal year, primarily due to
higher purchased power costs.
B-8
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Expenses and Program Revenues— Business-type Activities
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
Electric Waterworks Emergency communication
district
Expenses ■Program Revenues
Revenues by Source— Business-type Activities
Grants and Other,
contributions,� $1,372,172
$987,319
�Chargesfor
services,
$79,349,740
B-9
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements
Governmenta/funds The focus of the City's governmentalfundsis to provide information on near-term
inflows, outflows, and balances of spendab/e resources. Such information is useful in assessing the City's
financing requirements. In particular, unassigned fund balance may serve as a useful measure of a
government's net resources available for discretionary use as they represent the portion of fund balance
which has not yet been limited to use for a particular purpose by either an external party, the City itself, or
a group or individual that has been delegated authority to assign resources for use for particular purposes
by the City's Council.
At June 30, 2022, the City's governmental funds reported combined fund balances of $73,824,459, an
increase of$15,643,697 in comparison with the prior year. Of this amount, $31,152,181,or 42%constitutes
unassigned fund balance,which is available for spending at the City's discretion. The remainder of the fund
balance is either nonspendable, restricted, committed, or assigned to indicate that it is(1) not in spendable
form, $529,905; (2) restricted for particular purposes, $17,123,840; (3) committed for particular purposes,
$3,243,424; or (4) assigned for particular purposes, $21,775,109.
The general fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned
fund balance of the general fund was$31,152,181,while total fund balance was$32,052,172.As a measure
of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund
balance to total general fund expenditures. Unassigned fund balance represents 111%of total general fund
expenditures, while total fund balance represents 115% of that same amount. Unassigned fund balance
represents 61% when compared to total fund expenditures and transfers to other funds (e.g. school and
debt service funds), while total fund balance represents 63% of that same amount. The fund balance of
the City's general fund increased by $6,390,640 during the current fiscal year.
The general purpose school fund, a major fund, had a $4,272,326 increase in fund balance during the
current fiscal year. The general purpose school fund reports a total fund balance of$16,430,105, of which
$5,400 is nonspendable, $589,634 is restricted, $3,095,586 is committed, and $12,739,485 is assigned for
education.
The capital projects fund, a major fund, had a $1,942,997 increase in fund balance during the current fiscal
year. The capital projects fund reports a total fund balance of$8,473,109, of which $5,297,776 is restricted
from unused bond proceeds and $3,175,333 is assigned for capital projects. The increase in fund balance
is due to bond proceeds received in the current fiscal year for planned capital projects.
The debt service fund, a major fund, had an $808,193 increase in fund balance during the current fiscal
year. The debt service fund reports a total fund balance of $9,581,295, of which $5,171,565 is restricted
to debt service on Oak Ridge High School debt issuances and $4,409,730 is assigned for the payment of
debt service.
B-10
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Proprietary funds, The City's proprietary funds provide the same type of information found in the
business-type activities portion of the government-wide financial statements, but in more detail.
Unrestricted net position at the end of the year was $2,979,916 for the electric fund, $16,660,467 for the
waterworks fund, and $1,625,805 for the emergency communications district fund. Total net position
increased $3,435,439 in the electric fund and $3,242,109 in the waterworks fund. These increases are
expected as electric,water and wastewater rates are established to provide for income to fund debt service
payments. Total net position increased $37,603 in the emergency communications district fund.
General Fund Budgetary Highlights
Origina/budget compared to �na/budget. There were no amendments to the original estimated
revenues or original budgeted appropriations.
Fina/budget compared to actua/resu/ts Actual revenues were $4,001,110 higher than budgeted
revenues for the general fund. Intergovernmental revenues were $3,961,629 over budget due to increased
retail development and increased spending by federal contractors that resulted in increased sales tax
revenues. Revenues for taxes, licenses and permits, charges for services, and fines and forfeitures were
overall $1,526,227 over budget due to the uncertainry of how activities would be impacted by the COVID-
19 pandemic. These higher actual revenues compared to budget are partially offset by grant revenues
below budget by $1,539,613. Grant awards often cross multiple fiscal years and are fully budgeted due to
uncertainty of timing. Correspondingly, grant expenditures were also below budget.
Actual expenditures for the general fund were $2,528,533 less than budgeted expenditures. Consistent
with grant revenues that were below budget, grant expenditures were $1,213,432 below budget.
Expenditures that were below budget in fiscal year 2022 included general government by $171,271, public
safety by $527,586, public works by $149,217, and community services by $467,027.
Operating transfers into the general fund from the electric and waterworks funds was$97,290 over budget.
The electric and waterworks funds pay a tax equivalent payment to the general fund as outlined and
allowed under Tennessee State Law. The amount paid for fiscal year 2022 was at the amount allowed
under State law. Transfers out to other City funds was consistent with budget.
Capital Asset and Debt Administration
Capita/assets The City's investment in capital assets for its governmental and business type activities
as of June 30, 2022,amounts to$323,276,689 (net of accumulated depreciation).This investment in capital
assets includes land, construction in progress, buildings, improvements, infrastructure, equipment and
plant. The total increase in capital assets for the current fiscal year was 1.2%.
B-11
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Capital Assets (net of depreciation)
Governmental activities Business-type activities Total
FY2022 FY2021 FY2022 FY2021 FY2022 FY2021
Land $ 3,413,162 $ 3,342,472 $ 900,643 $ 900,643 $ 4,313,805 $ 4,243,115
Construction in
progress 9,636,869 1,592,678 4,039,760 3,123,164 13,676,629 4,715,842
Buildings 82,239,841 83,261,470 - - 82,239,841 83,261,470
Improvements 11,202,095 12,199,958 - - 11,202,095 12,199,958
Infrastructure 33,418,463 32,391,719 - - 33,418,463 32,391,719
Equipment 9,490,402 10,461,150 9,345,421 9,933,676 18,835,823 20,394,826
Electric Plant - - 56,373,242 56,667,319 56,373,242 56,667,319
Waterworks Plant - - 103,216,791 105,649,658 103,216,791 105,649,658
Total $149,400,832 $143,249,447 $173,875,857 $ 176,274,460 $323,276,689 $319,523,907
Major capital asset events during the current fiscal year included the following:
• Community services and development activities included the following significant projects:
$1,354,286 for development of the Oak Ridge airport funded through various grants and $141,765
for construction of the Oak ridge Conference Center.
• General government added $452,729 in new software.
• Education added $1,603,012 for new roofs at Glenwood Elementary School and the Oak Ridge High
School. Education also added $6,685,183 in various energy savings projects.
• The City Equipment Rental Fund purchased $667,332 in new vehicles and equipment.
• The City received capital contributions of infrastructure, including $2,326,780 in sidewalks, streets,
and storm drains for governmental activities and $971,319 in water and wastewater infrastructure
for business-type activities.
• Business-type activities added $6,048,476 in completed capital assets. $2,570,533 in electrical
capital assets were added, primarily for routine replacement of overhead and underground
distribution systems, new electric vehicles and equipment, and installation of new street lights and
traffic signals. $1,793,281 in water capital assets were added primarily for routine water
infrastructure improvements, including new meter installations. $1,677,667 in wastewater capital
assets were added primarily for routine wastewater infrastructure improvements and repairs and
upgrades to the Turtle Park Wastewater Treatment Plant.
Additional information on the City's capital assets can be found in Note 7 of this report.
B-12
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
Long-term debt. At the end of the current fiscal year, the City had total long-term debt outstanding of
$164,004,414. Of this amount, $94,843,011 comprises debt backed solely by the full faith and credit of the
Ciry. $69,161,403 in long-term debt is secured by specified revenue sources (electric, waterworks, and
emergency communications district debt); however, in the event of default, the full faith and credit of the
City is irrevocably pledged.
Outstanding Debt
Governmental Activities Business-type Activities Total
FY20Z2 FY2021 FY2022 FY2021 FY20Z2 FY2021
Generalobligation bonds $84,989,836 $81,944,512 $48,703,397 $51,476,719 $133,693,233 $133,421,231
Notes payable 9,488,922 10,202,198 20,458,006 21,755,042 29,946,928 31,957,240
Lease payable 364,253 508,759 - - 364,253 508,759
Total $94,843,011 $92,655,469 $69,161,403 $73,231,761 $164,004,414 $165,887,230
The City's total debt decreased by $1,882,816 (1.1%) during the current fiscal year. The decrease is a
result of regularly scheduled principal reductions on the existing outstanding debt as offset by new
issuances described below. $900,000 is attributable to the Electric Fund for energy savings projects, roof
replacement, building remodels, and electrical equipment.
In September 2021, the City issued $8,870,000 in General Obligation Bonds Series 2021C of which
$7,970,000 is attributable to the Capital Projects Fund and $900,000 is attributable to the Electric Fund for
energy savings projects, roof replacement, building remodels, and electrical equipment.
Additional information on the City's long-term debt can be found in Note 9 of this report.
The City currently maintains an ��AA+" rating from Standard & Poor's and Aa2 from Moody's for general
obligation debt. State statutes do not limit the amount of general obligation debt a governmental entity
may issue.
Economic Factors and Next Year's Budgets and Rates
The following economic factors currently affect the City and were considered in developing the fiscal year
2023 budget.
• The unemployment rate for the City is 3.8%. The City's unemployment rate has historically been
below that of Anderson County, State, and national levels.
• Properry tax collections for fiscal 2022 were $352,855 above budget, primarily due to a $296,674
increase in 2022 real property tax collections from residential and commercial development. In
fiscal 2023, property tax collections were budgeted basically flat with budget 2022 levels. This was
due to the appraisal ratio change on personal property from 100%down to 72.95% in the Anderson
County portion of Oak Ridge and 72.98%in the Roane County portion of Oak Ridge. This reduction
results in lower property tax assessments for personal and public utility property taxes. This
reduction offset gains from real property assessment growth. The fiscal 2023 property tax rate
remained at the fiscal 2022 level of$2.3136 per $100 of assessed valuation.
B-13
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
• Residential development is continuing at the Preserve at Clinch River and development reactivated
at Forest Creek Village. New townhome developments are planned for the Summit site and the
Popular Creek area along with new construction on many unfilled lots across the City. In fiscal
2022, a new 216 apartment complex opened adjacent to Main Street with a second phase in the
planning stages with an additional 120 apartments along with a retail mix.
• General Fund fiscal year 2022 sales tax collections in the Anderson County portion of the City were
$3,072,206 above budget due to increased spending by federal contractors related to the Uranium
Processing Facility (UPF) project and retail sales. A portion of the Oak Ridge sales tax collections
in Anderson County are restricted to funding the debt service that was issued to renovate and
expand the Oak Ridge High School. These funds are accounted for in the Debt Service Fund and
collections were $958,207 above budget in fiscal year 2022.
• Fiscal year 2022 sales tax collections in the Roane County portion of Oak Ridge were $452,448
above budget in the General Fund due to increased spending levels by federal contractors.
• For fiscal year 2023, local sales and use tax collections accounted for in the General Fund were
budgeted to increase $1,433,335, up by 12.8%, reflecting increased sales tax collections from
recent retail developments and a stabilization of sales tax collections in the Roane County portion
of Oak Ridge from federal contractors. Actual sales tax collections will begin to decline in the
Anderson County portion of Oak Ridge when the $6.5 billion UPF construction project nears
completion. The budget for sales tax collections is estimated at a sustainable amount so that
operational expenditures will not exceed longer term revenue capacity.
• Inflationary trends in the region compare with national indices. Pressures generally come from
drivers such as medical, retirement, and utilities. Medical costs,while still increasing, had stabilized
somewhat due to a restructuring of plans offered by the City. Medical rates have increasing during
fiscal 2023 and that impact will be reflected in the fiscal 2024 budget. Retirement rates now change
annually, rather than biennially, as they have done in the past. The 2023 pension rate increased
.81% from fiscal 2022 levels. It is anticipated that larger increases may be required in future fiscal
years.
• In mid fiscal 2021, design was completed for a new water treatment plant to be located close to
the existing raw water intake station. The nearly $80 million construction project also includes
updating the raw water intake system, including electrical system replacement, and water lines to
the City's water tank located by the current plant on the DOE reservation. The City closed on a
$20,656,145 Water Infrastructure Finance and Innovation Act (WIFIA) loan in October 2019 and
in July 2022 was awarded a $30 million loan through the State Revolving Fund (SRF) Loan Fund
for the project.. The City is in the review process for a $25 million SRF loan which will provide the
remaining funding for the total water treatment plant project.
• In September 2021, the City issued $8,870,000 in general obligation bonds of which $5,520,000 is
for energy efficiencies at School facilities, $2,450,000 for City building roof replacements and
building remodels, and $900,000 for electric system improvements
• TVA's restructuring of distributor contracts and pandemic credits have stabilized electric rates for
the near term. A 4% water rate increase was adopted effective January 1, 2019. Future rate
increases are anticipated for both these services due to anticipated major capital and related debt
requirements to maintain these systems. A water and sewer rate study is scheduled for early
calendar year 2023.
• The City has received $6,000,398 in American Rescue Plan Act funding. A portion of the funds are
anticipated to be used for water infrastructure replacement along with various other City capital
projects.
B-14
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
• $34,926 in fund balance is budgeted to be drawn in the general fund in fiscal year 2023. The City
has historically used conservative budgeting practices and salary budgets are based on full
employment. Typically, a fund balance draw does not occur and if it does it is a reduced amount
from budget. This would be less than a 1 cent impact at .36 cents to future property taxes if
revenue growth or expenditure reduction does not occur to offset the budgeted fund balance draw
in future fiscal years.
At the end of the current fiscal year, the unassigned fund balance in the general fund was $31,152,181.
The City has appropriated $34,926 of this amount for spending in the 2023 fiscal year budget.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to the City of Oak Ridge, Office of the
Finance Director, P.O. Box 1, Oak Ridge, TN 37831-0001.
B-15
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF NET POSITION
June 30, 2022
Primary Government Component Units
Oak Ridge Oak Ridge
Convention Public Schools
Governmental Business-type Oak Ridge and Visitors Education
Activities Activities Total Land Bank Bureau Foundation
Assets
Cash and cash equivalents $ 64,389,803 $ 26,774,893 $ 91,164,696 $ 366,872 $ 222,918 $ 185,096
Investments - - - - - 5,277,856
Receivables,net 25,243,315 8,766,544 34,009,859 127 95,000 22,259
Unconditional promises to give,net - - - - - 40,925
Due from other governments 9,189,383 - 9,189,383 - - -
Assets held for sale - - - 1,972,845 - -
Inventory,at cost 529,326 3,075,790 3,605,116 - - 18,286
Prepaid items 237,239 - 237,239 2,800 - -
Restricted assets:
Cash and cash equivalents 13,726,264 1,356,189 15,082,453 - - -
Investment-stabilization reserve trust 589,634 - 589,634 - - -
Netpension asset 43,414,684 1,215,816 44,630,500 - - -
Capital assets nondepreciable 13,050,031 4,940,403 17,990,434 - - -
Capital assets depreciable,net 136,350,801 168,935,454 305,286,255 - - -
Total assets 306,720,480 215,065,089 521,785,569 2,342,644 317,918 5,544,422
Deferred outflows of resources
Deferred pension outflows 21,765,849 3,555,906 25,321,755 - - -
Deferred other postemployment benefits outflows 2,617,562 193,549 2,811,111 - - -
Total deferred outflows ofresources 24,383,411 3,749,455 28,132,866 - - -
G1
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF NET POSITION (continued)
June 30, 2022
Primary Government Component Units
Oak Ridge Oak Ridge
Convention Public Schools
Governmental Business-type Oak Ridge and Visitors Education
Activities Activities Total Land Bank Bureau Foundation
Liabilities
Accounts payable $ 2,172,366 $ 8,591,581 $ 10,763,947 $ - $ 11,322 $ -
Accrued liabilities 4,279,660 119,267 4,398,927 - - -
Deposits payable 730,377 3,657,185 4,387,562 - - -
Contracts payable 447,025 - 447,025 - -
Accrued interest payable 220,110 150,705 370,815 - - -
Unearned revenue 3,937,851 2,817,469 6,755,320 - - -
Long-term liabilities:
Due within one year 8,999,131 6,181,821 15,180,952 853,278 - -
Due in more than one year 98,435,879 64,846,571 163,282,450 - - -
Totalliabilities 119,222,399 86,364,599 205,586,998 853,278 11,322 -
Deferred inflows of resources
Deferred property taxes 22,413,458 - 22,413,458 - - -
Deferred inflows on bond refunding 293,274 294,391 587,665 - - -
Deferred pension inflows 46,584,761 4,995,436 51,580,197 - - -
Deferred other postemployment benefits inflows 3,452,250 595,305 4,047,555 - - -
Advance payments 22,395 - 22,395 - 30,369 -
Totaldeferredinflowsofresources 72,766,138 5,885,132 78,651,270 - 30,369 -
Net position
Net investment in capital assets 62,678,596 105,298,625 167,977,221 - - -
Restricted for:
Capital projects 5,297,776 - 5,297,776 - - -
Drug enforcement 527,589 - 527,589 - - -
Street improvements 2,480,899 - 2,480,899 - - -
Public transportation 33,822 - 33,822 - - -
Pension 18,595,772 - 18,595,772 - - -
Education 3,612,189 - 3,612,189 - - 837,704
Unrestricted 45,888,7ll 21,266,188 67,154,899 1,489,366 276,227 4,706,718
Total net position $ 139,ll5,354 $ 126,564,813 $ 265,680,167 $ 1,489,366 $ 276,227 $ 5,544,422
The notes to the financial statements are an integral part of these financial statements.
C-2
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF ACTIVITIES
For the Year Ended 7une 30, 2022
Program Revenues Net(Expense)Revenue and Changes in Net Position
Primary Government Component Units
Oak Ridge Oak Ridge
OPerating Capital Convention Public Schools
Charges for Grants and Grants and Governmental Business-type Oak Ridge and Visitors Education
Expenses Services Contributions Contributions Activities Activities Total Land Bank Bureau Foundation
Functions/Programs
Primary government:
Governmental activities:
General government $ 2,344,028 $ 1,375,285 $ - $ - $ (968,743) $ - $ (968,743) $ - $ - $ -
Public safety 12,973,376 539,084 890,239 27,208 (11,516,845) - (11,516,845) - - -
Public works 7,393,853 2,219,435 - 2,745,470 (2,428,948) - (2,428,948) - - -
Community services 7,801,737 1,388,751 57,620 1,351,002 (5,004,364) - (5,004,364) - - -
Education 66,405,111 888,294 61,322,742 - (4,194,075) - (4,194,075) - - -
Grants 1,559,283 - 2,184,407 - 625,124 - 625,124 - - -
Interest and fiscal charges 2,058,288 - - - (2,058,288) - (2,058,288) - - -
Total governmental activities 100,535,676 6,410,849 64,455,008 4,123,680 (25,546,139) - (25,546,139) - - -
Business-type activities:
Electric 51,980,050 56,052,556 - - - 4,072,506 4,072,506 - - -
Waterworks 18,856,515 22,529,432 - 971,319 - 4,644,236 4,644,236 - - -
Emergency communication district 749,725 767,752 16,000 - - 34,027 34,027 - - -
Total business-type activities 71,586,290 79,349,740 16,000 971,319 - 8,750,769 8,750,769 - - -
Total primary government $ 172,121,966 $ 85,760,589 $ 64,471,008 $ 5,094,999 (25,546,139) 8,750,769 (16,795,370) - - -
Component units:
Oak Ridge Land Bank 125,329 56,100 - - - - - (69,229) - -
Convention and Visitors Bureau 555,418 59,009 432,000 - - - - - (64,409) -
Education Foundation 144,794 - - 145,373 - - - - - 579
Total component units $ 825,541 $ 115,109 $ 432,000 $ 145,373 - - - (69,229) (64,409) 579
General revenues:
Propertytaxes 22,107,139 - 22,107,139 - - -
In-lieu of tax payments 1,862,996 - 1,862,996 - - -
Sales taxes 18,227,867 - 18,227,867 - - -
Unrestricted state shared taxes 5,374,375 - 5,374,375 - - -
Businesstaxes 1,123,156 - 1,123,156 - - -
Occupancytaxes 825,914 - 825,914 - - -
Wholesale beer and liquor taxes 1,071,694 - 1,071,694 - - -
Investment earnings 126,501 60,002 186,503 306 117 583,882
Miscellaneous 1,953,025 1,312,170 3,265,195 - - -
Transfers 3,407,790 (3,407,790) - - - -
Totalgeneralrevenues andtransfers 56,080,457 (2,035,618) 54,044,839 306 117 583,882
Change in net position 30,534,318 6,715,151 37,249,469 (68,923) (64,292) 584,461
Net position-beginning 108,581,036 119,849,662 228,430,698 1,558,289 340,519 4,959,961
Netposition-ending $ 139,115,354 $ 126,564,813 $ 265,680,167 $ 1,489,366 $ 276,227 $ 5,544,422
The notes to the financial statements are an integral part of these financia]statements.
C-3
CITY OF OAK RIDGE, TENNESSEE
BALANCE SHEET
GOVERNMENTAL FUNDS
7une 30, 2022
General School Nonmajor Total
Purpose Capital Debt Federal Governmental Governmental
General School Projects Service Projects Funds Funds
Assets
Cash and cash equivalents $ 28,874,381 $ 16,033,179 $ 6,522,601 $4,122,525 $ - $ 6,112,145 $ 61,664,831
Receivables,net 24,121,892 605,327 95,659 287,205 - 133,232 25,243,315
Due from other funds - 1,434,333 - - - 850,554 2,284,887
Due from other governments 3,966,583 2,504,606 377,209 467,581 1,584,823 288,581 9,189,383
Inventories,at cost 321,455 - - - - 195,912 517,367
Prepaid items 4,845 5,400 - - 1,915 2,293 14,453
Total unrestricted assets 57,289,156 20,582,845 6,995,469 4,877,311 1,586,738 7,582,717 98,914,236
Restricted assets:
Cash and cash equivalents 661,071 - 5,744,801 4,703,984 - - 11,109,856
Investment-stabilization reserve trust - 589,634 - - - - 589,634
Total assets $ 57,950,227 $ 21,172,479 $ ]2,740,270 $9,581,295 $ 1,586,738 $ 7,582,717 $ 110,613,726
Liabilities,deferred inflows of
resources and fund balances
Liabilities:
Accounts payable $ 754,796 $ 342,245 $ 603,731 $ - $ 9,672 $ 266,476 $ 1,976,920
Accrued liabilities 304,623 3,549,350 - - 142,733 6,293 4,002,999
Deposits 730,377 - - - - - 730,377
Contracts payable - - 447,025 - - - 447,025
Due to other funds - 850,554 - - 1,434,333 - 2,284,887
Unearned revenue 721,446 - 3,216,405 - - - 3,937,851
Totalliabilities 2,511,242 4,742,149 4,267,161 - 1,586,738 272,769 13,380,059
Deferred inflows of resources:
Deferred property tax 23,386,813 - - - - - 23,386,813
Advancepayments - 225 - - - 22,170 22,395
Total deferred inflows of resources 23,386,813 225 - - 22,170 23,409,208
Fund balances:
Nonspendable 326,300 5,400 - - - 198,205 529,905
Restricted 33,822 589,634 5,297,776 5,171,565 - 6,031,043 17,123,840
Committed - 3,095,586 - - - 147,838 3,243,424
Assigned 539,869 12,739,485 3,175,333 4,409,730 - 910,692 21,775,109
Unassigned 31,152,181 - - - - - 31,152,181
Total fund balances 32,052,172 16,430,105 8,473,109 9,581,295 - 7,287,778 73,824,459
Total liabilities,deferred inflows of
resourcesandfundbalances $ 57,950,227 $ 21,172,479 $ 12,740,270 $9,581,295 $ 1,586,738 $ 7,582,717 $ 110,613,726
The notes to the financial statements are an integral part of these financial statements.
C-4
CITY OF OAK RIDGE, TENNESSEE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
7une 30, 2022
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances-governmental funds $ 73,824,459
Capital assets used in governmental activities are not financial resources and,therefore,are
not reported in the governmental funds. 145,038,592
Internal service funds are used by management to charge the costs of insurance and
equipment replacement to individual funds.The assets and liabilities of the intemal service
funds are included in govemmental activities in the statement of net position. 8,101,421
Property tax revenues and in-lieu of property tax revenues that have been deferred in the
balance sheet of the governmental funds because they were not available to pay current
liabilities of the period are recognized as revenue in the statement of activities and therefore
are not included in the statement of net position. 973,355
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the governmental funds:
General obligation debt (77,215,000)
Notes payable (9,488,922)
Discounts and premiums(net) (7,007,120)
Compensated absences (2,540,760)
Termination benefits (587,435)
Total other postemployment benefits liabiliry (9,286,489)
Accrued interest (210,064)
Net pension asset 43,338,634 (62,997,156)
Deferred outflows of resources are reported on the statement of net posirion for future
outflow of resources that are not reported on the balance sheet of the governmental funds:
Deferred other postemployment benefits outflows 2,602,382
Deferredpensionoutflows 21,543,427 24,145,809
Deferred inflows of resources are reported on the statement of net position for future inflows
of resources that are not reported on the balance sheet of the governmental funds:
Bond refunding (293,274)
Deferred other postemployment benefit inflows (3,405,559)
Deferred pension inflows (46,272,293) (49,971,126)
Net posirion of governmental activiries $ 139,115,354
The notes to the financial statements are an integral part of these financial statements.
GS
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended 7une 30, 2022
General School Nonmajor Total
Purpose Capital Debt Federal Governmental Governmental
General School Projects Service Projects Funds Funds
Revenues
Taxes $26,206,824 $ - $ - $3,398,207 $ - $ - $ 29,605,031
Licenses and permits 569,008 - - - - - 569,008
Intergovernmental 21,130,960 46,315,774 1,716,002 - 11,622,021 4,515,680 85,300,437
Charges for services 2,216,254 346,784 - - - 2,760,945 5,323,983
Fines and forfeitures 496,334 - - - - 21,524 517,858
Grants 2,184,407 - - - - - 2,184,407
Investment earnings 59,064 - 26,215 21,145 - 8,291 114,715
Miscellaneous 606,303 223,740 785 - - 1,108,219 1,939,047
Total revenues 53,469,154 46,886,298 1,743,002 3,419,352 11,622,021 8,414,659 125,554,486
Expenditures
Current
General government 2,445,732 - - - - - 2,445,732
Public safery 14,335,577 - - - - 82,369 14,417,946
Public works 2,601,145 - - - - 3,070,200 5,671,345
Community services 7,035,604 - - - - - 7,035,604
Grants 1,559,283 - - - - - 1,559,283
Educarion - 56,589,332 - - 11,300,092 4,141,547 72,030,971
Capital outlay - - 10,464,334 - - - 10,464,334
Debt seroice:
Principal - - - 5,543,276 - - 5,543,276
Interest - - - 2,675,088 - - 2,675,088
Bond issuance costs - - 121,481 - - - 121,481
Total expenditures 27,977,341 56,589,332 10,585,815 8,218,364 11,300,092 7,294,116 121,965,060
Excess(deficiency)of revenues
over(under)expenditures 25,491,813 (9,703,034) (8,842,813) (4,799,012) 321,929 1,120,543 3,589,426
Other financing(uses)sources
Transfers in 3,407,790 15,825,892 2,139,329 5,607,205 - 1,118,998 28,099,214
Transfers out (22,508,963) (1,850,532) - - (321,929) (10,000) (24,691,424)
Bonds issued - - 7,970,000 - - - 7,970,000
Premium on bonds issued - - 676,481 - - - 676,481
Net other financing(uses)sources (19,101,173) 13,975,360 10,785,810 5,607,205 (321,929) 1,108,998 12,054,271
Net change in fund balances 6,390,640 4,272,326 1,942,997 808,193 - 2,229,541 15,643,697
Fund balances-beginning 25,661,532 12,157,779 6,530,ll2 8,773,102 - 5,058,237 58,180,762
Fund balances-ending $32,052,172 $16,430,105 $ 8,473,109 $9,581,295 $ - $ 7,287,778 $ 73,824,459
The notes to the financial statements are an integral part of these financial statements.
C-6
CITY OF OAK RIDGE, TENNESSEE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended 7une 30, 2022
Amounts reported for governmental activities in the statement of activities are different because:
Nct change in fund balances-total governmental funds $ 15,643,697
Governmental funds report capital outlays as expenditures.However,in the statement of activities
the cost of those assets is allocated over their estimated useful lives and reported as depreciation
expense. This is the amount by which capital outlays from the capital projects fund($10,464,334)
and other governmental funds($522,551)exceeded depreciation expense($7,132,129)in the
current period. 3,854,756
The net effect of various miscellaneous transacrions involving capital assets(i.e., sales,developer
contributions and expensed capital outlays)is to increase net position. 2,373,397
Tax revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds. (298,516)
The issuance of long-term debt(e.g.bonds,leases)provides current financial resources to
governmental funds,while the repayment of the principal of long-term debt consumes the current
financial resources of governmental funds.Neither transaction,however,has any effect on net
position.Also,governmental funds report the effect of issuance costs,premiums,discounts,and
similar items when debt is first issued,whereas these amounts are deferred and amortized in the
statement of activities.This amount is the net effect of these differences in the treatment of long-
term debt and related items. (2,052,881)
Benefit reported in the statement of activities for changes in the net pension liability,deferred
outflows related to pensions,and deferred inflows related to pensions are not reported in the
funds. 11,482,817
Expenses reported in the statement of activities for changes in the total other postemployment
benefits liability,deferred outflows related to other postemployment benefits,and deferred
inflows related to other postemployment benefits are not reported in the funds. (295,238)
Accrued interest associated with long-term liabilities that are not due and payable in the current
period and therefore are not reported in the funds. (8,702)
The internal service funds are used by management to charge the costs of insurance and
equipment replacement to individual funds.The net revenue of certain activities of internal
service funds is reported with governmental activities. (165,012)
Change in net position of governmental activities $ 30,534,318
The notes to the financial statements are an integral part of these financial statements.
G7
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended )une 30, 2022
Variance
Actual on With Final
Original Final Budgetary Positive
Budget Budget Basis (Negative)
Revenues
Taxes $ 25,121,605 $ 25,121,605 $ 26,206,824 $ 1,085,219
Licenses and permits 447,325 447,325 569,008 121,683
Intergovernmental 17,169,331 17,169,331 21,130,960 3,961,629
Charges for services 2,061,263 2,061,263 2,216,254 154,991
Fines and forfeitures 332,000 332,000 496,334 164,334
Grants 3,724,020 3,724,020 2,184,407 (1,539,613)
Investment earnings 75,000 75,000 59,064 (15,936)
Miscellaneous 537,500 537,500 606,303 68,803
Total revenues 49,468,044 49,468,044 53,469,154 4,001,110
Expenditures
General government 2,617,003 2,617,003 2,445,732 171,271
Public safety 14,863,163 14,863,163 14,335,577 527,586
Public works 2,750,362 2,750,362 2,601,145 149,217
Community services 7,502,631 7,502,631 7,035,604 467,027
Grants 2,772,715 2,772,715 1,559,283 1,213,432
Total expenditures 30,505,874 30,505,874 27,977,341 2,528,533
Excess of revenues
over expenditures 18,962,170 18,962,170 25,491,813 6,529,643
Other financing sources (uses)
Transfers in 3,310,500 3,310,500 3,407,790 97,290
Transfers out (22,508,963) (22,508,963) (22,508,963) -
Net other financing uses (19,198,463) (19,198,463) (19,101,173) 97,290
Net change in fund balances (236,293) (236,293) 6,390,640 6,626,933
Fund balance -beginning 25,661,532 25,661,532 25,661,532 -
Fundbalance - ending $ 25,425,239 $ 25,425,239 $ 32,052,172 $ 6,626,933
The notes to the financial statements are an integral part of these financial statements.
C-8
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
GENERAL PURPOSE SCHOOL FUND
For the Year Ended )une 30, 2022
Variance
Actual on With Final
Original Final Budgetary Positive
Budget Budget Basis (Negative)
Revenues
Intergovernmental $ 43,444,446 $ 44,017,124 $ 46,315,774 $ 2,298,650
Charges for services 267,500 267,500 346,784 79,284
Other 443,772 274,120 223,740 (50,380)
Total revenues 44,155,718 44,558,744 46,886,298 2,327,554
Expenditures
Education 61,495,429 61,897,855 56,589,332 5,308,523
Total expenditures 61,495,429 61,897,855 56,589,332 5,308,523
(Deficiency) excess of revenues
(under) over expenditures (17,339,711) (17,339,111) (9,703,034) 7,636,077
Other financing sources (uses)
Transfers in 15,793,963 15,793,963 15,825,892 31,929
Transfers out (76,784) (77,384) (1,850,532) (1,773,148)
Net other financing sources 15,717,179 15,716,579 13,975,360 (1,741,219)
Net change in fund balances (1,622,532) (1,622,532) 4,272,326 5,894,858
Fund balance -beginning 12,157,779 12,157,779 12,157,779 -
Fund balance - ending $ 10,535,247 $ 10,535,247 $ 16,430,105 $ 5,894,858
The notes to the financial statements are an integral part of these financial statements.
C-9
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
7une 30, 2022
Governmental
Business-type Activities Activities
Nonmajor
Enterprise Fund- Total Internal
Emergency Enterprise Service
Electric Waterworks Communications Funds Funds
Assets and deferred outflows of resources
Current assets:
Cash and cash equivalents $ 6,587,912 $ 18,554,481 $ 1,632,500 $ 26,774,893 $ 5,34],380
Receivables,net 6,523,654 2,242,890 - 8,766,544 -
Prepaid items - - - - 222,786
Inventories,at cost 1,950,782 1,125,008 - 3,075,790 11,959
Restricted assets:
Cash and cash equivalents 1,170,647 185,542 - 1,356,189 -
Total current assets 16,232,995 22,107,921 1,632,500 39,973,416 5,576,125
Noncurrent assets:
Capital assets,net 61,537,345 110,197,427 2,141,085 173,875,857 4,362,240
Net pension asset 575,601 640,215 - 1,215,816 76,050
Total noncurrent assets 62,112,946 110,837,642 2,141,085 175,091,673 4,438,290
Total assets 78,345,941 132,945,563 3,773,585 215,065,089 10,014,415
Deferred outflows of resources:
Deferred pension outflows 1,683,464 1,872,442 - 3,555,906 222,422
Deferredotberpostemploymentbenefitoutflows 66,414 127,135 - 193,549 15,180
Total deferred outflows ofresources 1,749,878 1,999,577 - 3,749,455 237,602
Liabilities and deferred inflows of resources
Current liabilities:
Accounts payable 8,273,293 315,530 2,758 8,591,581 195,446
Accrued liabilities 67,770 51,497 - ll9,267 276,661
Deposits 3,227,879 429,306 - 3,657,185 -
Currentportionofnoncurrentliabilities 1,329,756 4,656,866 195,199 6,181,821 287,130
Accrued interest payable 31,989 114,779 3,937 150,705 10,046
Unearned revenue - 2,817,469 - 2,817,469 -
Total current liabilities 12,930,687 8,385,447 201,894 21,518,028 769,283
Noncurrent liabilities:
Notes payable 1,283,296 17,932,478 - 19,215,774 -
Bondspayable 11,601,103 31,780,367 1,114,310 44,495,780 655,426
Lease payable - - - - 277,707
Total other postemployment benefits liability 389,467 745,550 - 1,135,017 89,021
Total noncurrent liabilities 13,273,866 50,458,395 1,114,310 64,846,571 1,022,154
Totalliabilities 26,204,553 58,843,842 1,316,204 86,364,599 1,791,437
Deferred inflows of resources:
Deferred pension inflows 2,364,976 2,630,460 - 4,995,436 312,468
Deferred other postemployment benefit inflows 204,271 391,034 - 595,305 46,691
Deferred inflows on bond refunding 99,929 194,462 - 294,391 -
Total deferred inflows of resources 2,669,176 3,215,956 - 5,885,132 359,159
Net position
Net investment in capital assets 48,242,174 56,224,875 831,576 105,298,625 3,230,271
Unrestricted 2,979,916 16,660,467 1,625,805 21,266,188 4,871,150
Totalnetposition $ 51,222,090 $ 72,885,342 $ 2,457,381 $ 126,564,813 $ 8,101,421
The notes to the financial statements are an integral part of these financial statements.
C-1�
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended 7une 30, 2022
Governmental
Business-type Activities Activities
Nonmajor
Enterprise Fund- Total
Emergency Enterprise Internal
Electric Waterworks Communications Funds Service Funds
Operating revenues:
Charges for services $ 56,052,556 $ 22,529,432 $ 767,752 $ 79,349,740 $ 7,599,717
Miscellaneous 1,100,680 211,490 - 1,312,170 -
Employer's contributions - - - - 3,952,080
Employees'contributions - - - - 946,573
Total operating revenues 57,153,236 22,740,922 767,752 80,661,910 12,498,370
Operating expenses:
Maintenance and administrative 9,048,950 11,571,379 323,834 20,944,163 1,633,888
Purchased power and water 39,370,649 1,288 - 39,371,937 -
Depreciation 3,253,829 5,944,433 391,061 9,589,323 732,528
Materials - - - - 511,295
Medical/liabiliry claims - - - - 470,836
Insurance premiums - - - - 5,422,142
Other benefits - - - - 3,885,092
Total operating expenses 51,673,428 17,517,100 714,895 69,905,423 12,655,781
Operating income(loss) 5,479,808 5,223,822 52,857 10,756,487 (157,411)
Nonoperating revenues(expenses):
Gain on disposal of capital assets - - - - 13,978
Intergovernmental - - 16,000 16,000 -
Inveshnent earnings 18,534 37,892 3,576 60,002 11,786
Interest expense (288,324) (1,339,415) (34,830) (1,662,569) (33,365)
Bond issuance costs (18,298) - - (18,298) -
Net nonoperating expenses (288,088) (1,301,523) (15,254) (1,604,865) (7,601)
Income(loss)beforc capital
contributions and transfers 5,191,720 3,922,299 37,603 9,151,622 (165,012)
Transfers out (1,756,281) (1,651,509) - (3,407,790) -
Capital contributions - 971,319 - 971,319 -
Change in net position 3,435,439 3,242,109 37,603 6,715,151 (165,012)
Net position-beginning 47,786,651 69,643,233 2,419,778 119,849,662 8,266,433
Net position-ending $ 51,222,090 $ 72,885,342 $ 2,457,381 $ 126,564,813 $ 8,101,421
The notes to the financial statements are an integral part of these financial statements.
C-11
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended 7une 30, 2022
Governmental
Business-type Activities Activities
Nonmajor
Enterprise Fund- Total
Emergency Enterprise Internal
Electric Waterworks Communications Funds Service Funds
Cash flows from operating activities
Receipts from customers $ 56,523,169 $ 22,955,234 $ 767,752 $ 80,246,155 $ 12,498,370
Payments to employees for salaries and benefits (3,687,341) (3,492,936) - (7,180,277) (612,574)
Payments to suppliers and service providers (44,627,807) (9,305,961) (325,579) (54,259,347) (11,538,680)
Net cash provided by operating activities 8,208,021 10,156,337 442,173 18,806,531 347,116
Cash flows from noncapital financing activities
Transfers to other funds (1,756,281) (1,651,509) - (3,407,790) -
Federalgrantproceeds - 2,817,469 16,000 2,833,469 -
Net cash(used in)provided by noncapital financing activities (1,756,281) 1,165,960 16,000 (574,321) -
Cash flows from capital and related 6nancing activities
Proceeds from the issuance of long-term debt 960,000 - - 960,000 -
Proceeds from the sale of capital assets - - - - 25,550
Acquisition and construction of capital assets (2,916,768) (2,890,011) (6,995) (5,813,774) (667,332)
Payments on lease payable - - - - (83,697)
Principal paid on capital debt (920,000) (3,467,036) (170,000) (4,557,036) (100,000)
Interest paid on capital debt (433,638) (1,746,651) (55,737) (2,236,026) (47,851)
Net cash used in capital and related financing activities (3,310,406) (8,103,698) (232,732) (ll,646,836) (873,330)
Cash flows from investing activities
Interest on investments 18,534 37,892 3,576 60,002 11,786
Net cash provided by investing activities 18,534 37,892 3,576 60,002 11,786
Net increase(decrease)in cash and cash equivalents 3,159,868 3,256,491 229,017 6,645,376 (514,428)
Cash and cash equivalents-beginning 4,598,691 15,483,532 1,403,483 21,485,706 5,855,808
Cash and cash equivalents-ending $ 7,758,559 $ 18,740,023 $ 1,632,500 $ 28,131,082 $ 5,341,380
Cash and cash equivalents are classified as:
Current assets $ 6,587,912 $ 18,554,481 $ 1,632,500 $ 26,774,893 $ 5,341,380
Restricted assets 1,170,647 185,542 - 1,356,189 -
Total cash and cash equivalents-ending $ 7,758,559 $ 18,740,023 $ 1,632,500 $ 28,131,082 $ 5,341,380
C-IZ
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF CASH FLOWS (continued)
PROPRIETARY FUNDS
For the Year Ended 7une 30, 2022
Governmental
Business-type Activities Activities
Nonmajor
Enterprise Fund- Total
Emergency Enterprise Internal
Electric Waterworks Communications Funds Service Funds
Reconciliation of operating income(loss)to net
cash provided by operating activities
Operating income(loss) $ 5,479,808 $ 5,223,822 $ 52,857 $ 10,756,487 $ (157,411)
Adjustments to reconcile operating income(loss)
to net cash provided by operating activities:
Depreciarion and amorrization 3,253,829 5,944,433 391,061 9,589,323 732,528
Changes in assets and liabilities
Receivables (546,159) 197,568 - (348,591) -
Prepaid items - - - - (88,622)
Inventories (332,630) 57,493 - (275,137) 257
Due from other governments - - - - -
Deferred outflows (792,264) (768,053) - (1,560,317) (135,ll5)
Accounts payable 1,143,308 (267,701) (1,745) 873,862 85,839
Accrued liabiliries 19,326 7,845 - 27,171 (173,357)
Compensated absences (45,714) (49,252) - (94,966) 7,171
Customer deposits (83,908) 16,744 - (67,164) -
Total other postemployment benefits liability (3,523) (130,255) - (133,778) (805)
Net pension liability(asset) (2,151,799) (2,586,236) - (4,738,035) (234,292)
Deferred inflows 2,267,747 2,509,929 - 4,777,676 310,923
Total adjustments 2,728,213 4,932,515 389,316 8,050,044 504,527
Net cash provided by operating acriviries $ 8,208,021 $ 10,156,337 $ 442,173 $ 18,806,531 $ 347,ll 6
Schedule of non-cash capital and related financing activities:
Purchase of capital assets on account $ 308,748 $ 96,879 $ - $ 405,627 $ -
Contributions of capital assets - 971,319 - 971,319 -
The notes to the financial statements are an integral part of these statements.
G13
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
7une 30, 2022
Private Purpose
Trust-
Scholarship Fund
Assets
Cash and cash equivalents $ 87,284
Total assets
Liabilities
Liability for student activities -
Total liabilities -
Net Position
Held in trust for scholarships 87,284
Total net position $ 87,284
The notes to the financial statements are an integral part of these statements.
G14
CITY OF OAK RIDGE, TENNESSEE
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
For the Year Ended 7une 30, 2022
Private Purpose
Trust-
Scholarship Fund
Additions
Investment income $ 182
Contributions 500
Total additions 682
Deductions
Scholarship awards 1,600
Total deductions 1,600
Change in net position (918)
Total net position - beginning 88,202
Total net position - ending $ 87,284
The notes to the financial statements are an integral part of these statements.
G15
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Oak Ridge,Tennessee(the City),conform to accounting principles
generally accepted in the United States of America (GAAP) applicable to governmental units. The
following is a summary of the more significant policies:
A. Reporting Entitv
The City was incorporated June 16, 1959, under Chapters 30 through 36 of Title 6, Tennessee
Code Annotated (TCA), which chapters became the Home Rule Charter of the City, as the result of
an election held November 7, 1962. The City operates under a Modified City Manager-Council form
of government and provides services as authorized by its charter.
The basic criteria for determining whether another governmental organization should be included
in a primary governmental unit's reporting entity for basic financial statements is financial
accountability. Financial accountability includes (1) the appointment of a voting majority of the
organization's governing body, (2) the ability of the primary government to impose its will on the
organization, or (3) if there is a financial benefit/burden relationship. In addition, an organization
that is fiscally dependent on the primary government should be included in its reporting entity.
These financial statements present the City (the primary government) and its component units,
entities for which the City is considered to be financially accountable. The operations of the Oak
Ridge Schools(the Schools)are included as a part of the primary government. Discretely presented
component units are reported in separate columns in the government-wide financial statements to
emphasize they are legally separate from the City. The accounting principles and policies utilized
by the discretely presented component units are the same as those of the City unless stated
otherwise in the following Notes to the Financial Statements.
Discretely Presented Component Units
Oak Ridge Land Bank. The Oak Ridge Land Bank Corporation (the Land Bank) was developed to
support economic revitalization by returning vacant, abandoned and tax delinquent properties to
productive use and is a not-for profit organization exempt from federal income taxes under Internal
Revenue Code Section 501(c)(3). The Land Bank's Board of Directors consists of seven directors
who assume all managerial responsibilities and are appointed by City Council, one of which is a
member of City Council. The City periodically transfers properties to the Land Bank.
Separate financial statements for the Land Bank may be obtained at the following address:
Oak Ridge Land Bank Corporation
P.O. Box 1
Oak Ridge, TN 37831-0001
G16
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
A. Reporting Entity (continued)
Discretely Presented Component Units (continued�
Oak Ridge Convention and �isitors Bureau: The Convention and Visitors Bureau (the Bureau)
promotes tourism activities and operates a tourist information center within the Ciry. The Bureau's
seven Board members are appointed by City Council. Bureau operations are substantially funded
from City appropriations. Complete financial statements for the Oak Ridge Convention and Visitors
Bureau may be obtained at the Bureau's administrative offices at the following address:
Oak Ridge Convention and Visitors Bureau
1400 Oak Ridge Turnpike
Oak Ridge, TN 37830
Oak Ridge Public Schools Education Foundation, Inc. The Oak Ridge Public Schools Education
Foundation, Inc. (the Foundation) is a not-for profit organization exempt from federal income taxes
under Internal Revenue Code Section 501(c)(3). The Foundation's primary mission is to enhance,
promote and support the City of Oak Ridge Schools. The Foundation receives donations and
pledges from individuals, corporations and other donors. The City does not appoint or approve the
Foundation's budget or Board of Directors. However, the Foundation's main purpose is to provide
financial support to the Schools.
The Foundation has been audited by a separate certified public accounting firm for the year ended
December 31, 2021. The Foundation's results have been presented with a different year-end.
The Foundation publishes separate financial statements, which may be obtained from:
Oak Ridge Public Schools Education Foundation, Inc.
MS-22, P.O. Box 117
Oak Ridge, TN 37831
(865) 241-3667
Related Organizations
Oak Ridge City Council is responsible for all board appointments of the Oak Ridge Housing
Authority, Oak Ridge Utility District, Oak Ridge Industrial Development Board and the Oak Ridge
Health and Education Facilities Board. However, the Ciry has no further accountability for any of
these organizations. The City cannot impose its will on these boards since it does not have the
ability to modify or approve their budgets or overrule or modify decisions of the boards. The
boards are fiscally independent and there is no financial benefit or burden relationship with the
City. Therefore, they are not included in the City's financial statements.
G17
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
B. Government-wide and Fund Financial Statements
Government-wide Statements
The statement of net position and the statement of activities display information about the primary
government and its component units.These statements include the financial activities of the overall
government. These statements distinguish between the governmental and business-type activities
of the City. Governmental activities generally are financed through taxes, intergovernmental
revenues, and other non-exchange transactions. Business-type activities are financed in whole or
in part by fees charged to external parties. Fiduciary funds are excluded from the government-
wide financial statements.
The statement of activities presents a comparison between direct expenses and program revenues
for the different business-type activities of the City and for each function of the City's governmental
activities. Direct expenses are those that are specifically associated with a program or function and,
therefore, are clearly identifiable to a particular function. Indirect expense allocations that have
been made in the funds have been reversed for the statement of activities. Program revenues
include (a) fees and charges paid by the recipients of goods or services offered by the programs
and (b) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular program. Revenues that are not classified as program revenues,
including all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the City's funds. Separate financial
statements are provided for governmental funds, proprietary funds and fiduciary funds. The
emphasis of fund financial statements is on major governmental and enterprise funds, each
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each parry receives and gives up essentially equal values. Nonoperating revenues, such as
intergovernmental revenues and investment earnings, result from non-exchange transactions or
ancillary activities.
The City reports the following major governmental funds:
General Fund`. The General Fund is the principal fund of the City and is used to account for all
activities of the City not included in other specified funds.The General Fund accounts for the normal
recurring activities of the City including police, fire, community services, recreation, public works,
and general government.
Genera/Purpose SchoolFund`. The General Purpose School Fund is the main operating fund of the
Schools. This fund is used to account for all financial resources of the Schools, except those
required to be accounted for in another fund. Revenues are received from local taxes, state and
federal revenues and charges for services.
G18
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
B. Government-wide and Fund Financial Statements (continued)
Fund Financial Statements (continued�
Capital Projects Funa� The Capital Projects Fund is used to account for financial resources
segregated for the acquisition,construction or renovation of major capital facilities other than those
financed by proprietary operations. The primary funding source is proceeds from general obligation
debt issuances and transfers from the General Fund.
Debt Service Funa� The Debt Service Fund is used to account for the payment of principal and
interest on long-term general obligation debt. It does not include debt issued for services provided
by a proprietary fund. Local taxes and transfers from the General Fund primarily service these debt
obligations.
SchoolFedera/Projects Fund`. The School Federal Projects Fund is used to account for the proceeds
of federal award grant programs requiring separate accounting because of legal or regulatory
provisions or administrative action.
The City reports the following major enterprise funds:
E/ectric Fund`. The Electric Fund is used to account for the provision of electric service to the
residents of the City. All activities necessary to provide such service are accounted for in this fund,
including, but not limited to, administration, operations, maintenance, financing, billing, and
collection.
Waterworks Func� The Waterworks Fund is used to account for the provision of water and sewer
service to the residents of the City. All activities necessary to provide such service are accounted
for in this fund, including, but not limited to, administration, operations, maintenance, financing,
billing, and collection.
The City also reports the following fund types:
Internal Ser�ice Funds Internal Service Funds are used to account for the financing of goods or
services provided by one department to other departments of the City on a cost-reimbursement
basis. Activities accounted for in internal service funds include: (1) medical benefits and retirement
plan contributions for City employees, unemployment, worker's compensation and general liability
claims and premiums, (2) providing for the purchase and leasing of equipment and vehicles to City
departments along with accounting for fuel and maintenance of these vehicles.
Fiduciary Funds The Scholarship Fund, a private purpose trust fund, is used to account for
resources legally held in trust for use of scholarship awards. All resources of the fund, including
investment earnings, may be used for scholarship awards.
Generally, the effect of interfund activity has been removed from the government-wide financial
statements, with the exception of interfund services provided and used which are not eliminated
in the process of consolidation. Net interfund activiry and balances between governmental activities
and business-type activities are shown in the government-wide financial statements.
G19
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
C. Measurement Focus and Basis of Accountina
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary fund
financial statements. Revenues are recorded when earned and expenses are recorded when
liabilities are incurred, regardless of when the related cash flows take place. Non-exchange
transactions, in which the City gives (or receives) value without directly receiving (or giving) equal
value in exchange, include property taxes, grants and donations. On an accrual basis, revenue
from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from
grants and donations is recognized in the fiscal year in which all eligibility requirements have been
satisfied.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under this method, revenues
are recognized when they are both measurable and available. Expenditures are recorded when the
related fund liability is incurred, except for principal and interest on general long-term debt,
including lease liabilities, claims and judgments, and compensated absences, which are recorded
only when payment is due. General capital asset acquisitions, including right to use assets, are
reported as expenditures in governmental funds. Proceeds of general long-term debt and financing
through leases are reported as other financing sources.
The City considers certain revenues available if collected within 60 days after year-end. Sales,
gasoline and motor fuel, beer and liquor wholesale, room occupancy and mixed drink taxes are
considered "measurable" at the point of sale and are recognized as revenue at that time. All other
non-grant intergovernmental revenues, licenses and permits, charges for services, fines and
forfeitures, and other revenues are measurable when received and are recorded as revenue at that
time.
Grant revenues, which are unearned at year-end, are recorded as unearned revenues. Under the
terms of grant agreements, the City funds certain programs by a combination of specific cost-
reimbursement grants, categorical block grants, and general revenues. Thus, when program
expenses are incurred, there are both restricted and unrestricted net position available to finance
the program. It is the City's policy to first apply cost-reimbursement grant resources to such
programs, followed by categorical block grants, and then by general revenues.
Proprietary funds distinguish operatingrevenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with the proprietary fund's principal ongoing operation. The principal ongoing
operating revenues of the City's enterprise and internal service funds are charges to customers for
sales and services provided. Operating revenues in the Waterworks Fund includes the portion of
the tap fees intended to cover the cost of connecting new customers to the system. Operating
expenses for enterprise funds and internal service funds include the costs of sales and services,
administrative expenses and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
G20
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
D. Budgets and Budaetary Accountin4
The budgets for all governmental funds are legally adopted annually on a basis consistent with
GAAP, except the Internal School Fund (a special revenue fund), which is not budgeted. For the
General, Special Revenue, and Capital Projects Funds, encumbrances are treated as budgeted
expenditures in the year the commitment to purchase is incurred. The adjustments necessary to
convert the basis of budgeting to GAAP represent the net change in encumbrances outstanding at
the beginning and ending of the fiscal year. All appropriations which are not expended or
encumbered lapse at year end.
By early-June, the City Manager submits to the City Council a proposed operating budget for the
fiscal year commencing the following July 1. The operating budget includes proposed expenditures
and the means of financing them. Also, a six-year capital budget is developed and presented to
City Council prior to preparation of the upcoming annual operating budget. A public hearing is
conducted at the Municipal Building to obtain taxpayer comments. Prior to ]uly 1, the budgets for
all governmental funds are legally enacted through passage of an ordinance by City Council.
The City Manager is authorized to transfer budgeted amounts between departments within any
fund; however, any revisions that alter the total expenditures of any fund must be approved by
the City Council. Expenditures may not exceed appropriations at the fund level.
Formal budgetary integration is employed as a management control device during the year for the
General Fund, Special Revenue Funds, Debt Service Fund, and Capital Projects Fund. Budgetary
control is also achieved for the Debt Service Fund through general obligation bond indenture
provisions.
E. Cash and Cash Equivalents
Cash and cash equivalents include deposits in the State of Tennessee's Local Government
Investment Pool (LGIP) as well as cash on hand and on deposit. The LGIP is a SEC 2a-7-like fund
and the amount stated is based on the LGIP share price. Investments in the LGIP are reported at
amortized cost.
The City maintains a pooled cash account that is available for use by all funds, except the School
funds and those restricted by State statutes or other legal requirements. Each fund's positive equity
in the pooled cash account is presented as cash and cash equivalents on the balance sheet.
Negative equity balances have been reclassified and are reflected as due to/from other funds.
Interest income and expense are allocated to the various funds based upon their average monthly
equity balances.
For purposes of the statement of cash flows, the City considers all highly liquid investments with
maturity of three months or less when purchased to be a cash equivalent.
F. Investments
Investments are stated at the fair value based upon quoted market price.
G21
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
G. Unbilled Accounts Receivable
In the Electric Fund and Waterworks Funds, both enterprise funds, an estimated amount has been
recorded for electric, water and wastewater services rendered but not yet billed as of the close of
the fiscal year. The receivable was computed by taking the cycle billings the City sent to customers
in July and prorating the amount of days applicable to the current fiscal year.
H. Allowances for poubtful Accounts
All receivables that historically experience uncollectible accounts are shown net of an allowance for
doubtFul accounts. This amount is estimated by analyzing the percentage of receivables that were
written off in prior years.
I. Unconditional Promises to Give
Unconditional promises to give of the Foundation are recognized as contribution revenue in the
period that it is, in substance, unconditional. The Foundation uses the allowance method to
determine an uncollectible amount based upon prior years' experience and management's
estimates.
Unconditional pledges that are expected to be collected within one year are recorded at net
realizable value. Unconditional receivables that are expected to be collected in future years are
recorded at the present value of their estimated future cash flows.The discounts on those amounts
are computed using risk-free interest rates applicable to the years in which the pledges are
received. Amortization of the discounts is included in contribution revenue.
). Inventories
Inventories,consisting of plant materials and operating supplies, are valued, maintained and issued
using the average cost method. The costs of inventories are recorded as expenditures when
consumed.
K. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items. The cost of prepaid items is recorded as an expenditure when consumed rather
than when purchased. Prepaids are offset in the nonspendable fund balance account in
governmental funds.
L. Commodities
The Schools receive commodities for school cafeterias from the U.S. Department of Agriculture.
The value of the commodities received is reported as revenue, and the value of such commodities
used is reported as cost of food in the accompanying financial statements.
M. Restricted Assets
Assets are reported as restricted when limitations on their use are either imposed by creditors,
contributors, grantors or imposed by enabling legislation.
G22
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
N. Capital Assets
Capital assets are defined by the City as assets with an initial, individual cost greater than $5,000.
Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated
capital assets are recorded at their acquisition value at the date of donation. The cost of normal
maintenance and repairs that do not add to the value of the asset or materially extend the assets'
lives are not capitalized.
Depreciation has been provided over the estimated useful lives using the straight-line method for
assets used by all governmental activities. The composite method is primarily being used for other
City assets. The estimated useful lives are as follows:
Infrastructure 40 - 50 years 2% - 2.5% composite method
Buildings 20 - 50 years 2% - 5% composite method
Improvements 15 - 40 years 2.5% - 6.667% composite method
Equipment 3 - 20 years
O. Comaensated Absences
Employees of the City are granted general (vacation) and emergency (sick) leave in varying
amounts. In the event of termination, an employee is paid for accumulated general (vacation)
leave; however,accumulated emergency(sick) leave is not paid. Upon retirement,the accumulated
emergency (sick) leave is credited to time of employment for calculating years of service under
Tennessee Consolidated Retirement System benefits.
For the government-wide and proprietary funds, an expense and a liability for compensated
absences and the salary-related payments are recorded as the leave is earned. The City has
assumed a first-in, first-out method of using accumulated compensated time. The portion of that
time that is estimated to be used in the next fiscal year has been designated as a current liability
in the government-wide financial statements. In the fund financial statements,governmental funds
expense compensated absences as they are paid. The compensated liability is not reported in their
respective fund financial statements because it is not expected to be liquidated with available
financial resources.
P. Long-term Liabilities
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term liabilities are reported as liabilities in the applicable
governmental activities, business-type activities,or proprietary fund type statement of net position.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the
straight-line method that approximates the effective interest method. Bonds payable are reported
net of the applicable bond premiums or discount. Debt issuance costs are recorded as an expense
in the current period.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on
debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from
the actual debt proceeds received, are reported as debt service expenditures.
G23
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
Q. Leases
As lessee,the City recognizes an intangible right-to-use lease asset(lease asset)and a lease liability
in the government-wide financial statements. At the commencement of a lease, the City initially
measures the lease liability at the present value of payments expected to be made during the lease
term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.
The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease
payments made at or before the commencement date, plus certain initial direct costs.
Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate
charged by the lessor is not determinable, the City uses its estimated incremental borrowing rate
as the discount rate for leases. The lease term includes the noncancellable period of the lease.
Lease payments included in the measurement of the lease liability are composed of fixed payments
and purchase options that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and
will remeasure the lease asset and liability if certain changes occur that are expected to significantly
affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term
debt on the statement of net position.
R. Pensions
For purposes of ineasuring the net pension liability, net pension asset, deferred outflows of
resources and deferred inflows of resources related to pensions, and pension expense, information
about the fiduciary net position of the City's participation in the Public Employee Retirement Plan,
the Teacher Retirement Plan, and the Teacher Legacy Pension Plan of the Tennessee Consolidated
Retirement System (TCRS), and additions to or deductions from the plans' fiduciary net position
have been determined on the same basis as they are reported by the TCRS for the Public Employee
Retirement Plan, the Teacher Retirement Plan, and the Teacher Legacy Pension Plan. For this
purpose, benefits (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms of the Public Employee Retirement Plan, the Teacher
Retirement Plan, and the Teacher Legacy Pension Plan of the TCRS. Investments are reported at
fair value.
S. Other Postemployment Benefit (OPEB) Plans
For purposes of ineasuring the total OPEB liabiliry, deferred outflows of resources and deferred
inflows of resources related to OPEB, and OPEB expense, have been determined on the same basis
as they are reported by the City. For this purpose, the City recognizes benefit payments when due
and payable in accordance with benefit terms. The City's OPEB plan is not administered through a
trust.
G24
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
T. Termination Benefits
The Schools provide voluntary termination benefits for professional employees who agree to retire
before 65. Payments are recorded as an expenditure in the General Purpose School Fund. The
estimated liability and related expense are reported in the government-wide financial statements.
U. Interfund Transactions
Transactions between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year which are not due within one year are referred to as
"interfund note payable". All other outstanding balances between funds are reported as "due
to/from other funds".
Advances between funds are recorded as nonspendable fund balance in applicable governmental
funds to indicate they are not available for appropriation and are not expendable available financial
resources. All other interfund transfers are treated as transfers and are included in the results of
operations of both governmental and proprietary funds.
V. Net Position
The City's net position is classified as follows:
Netlnvestmentin Capita/Assets This represents the City's total investment in capital assets, net
of outstanding debt obligations related to those capital assets.To the extent debt has been incurred,
but not yet expended for capital assets, such amounts are not included as a component of net
investment in capital assets.
Restricted Net Position: Restricted net position reflects the resources that are subject to restricted
use and have been externally imposed by creditors, grantors or contributors, or by law through
constitutional provisions or enabling legislation.
Unrestricted Net Position: Unrestricted net position includes resources that are available for
transactions relating to the general operations of the City and may be used at the discretion of the
City to meet current expenses for any purpose.
W. Fund Balance
Governmental funds report fund balance in classifications based primarily on the extent to which
the City is bound to honor constraints on the specific purposes for which amounts in the funds can
be spent. Fund balances of the City's governmental funds are classified into the following
categories:
Nonspendable Fund Balance: This is comprised of amounts that cannot be spent due to their form
or funds that legally or contractually are required to be maintained intact. Fund balances reported
as nonspendable in the accompanying financial statements represent amounts for inventory,
prepaid expenditures, and advances to other funds.
G25
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
W. Fund Balance (continued)
Restricted Fund Balance: Fund balances reported as restricted are the result of externally imposed
restrictions placed upon current resources by external parties, constitutional provisions or enabling
legislations. Examples include state statutes, creditors, bond covenants, donors or grantors.
When both restricted and unrestricted resources are available for use, it is the School's policy and
the City's practice to expend any available restricted, committed or assigned resources, in that
order, prior to expending unassigned resources.
Commifted Fund Balance: This is comprised of amounts that are set aside for specific purposes by
the City's highest level of decision making authority (City Council or Board of Education for the
Schools) through its highest level of formal action (Ordinance adoption by City Council or formal
approval by Board of Education for the Schools). Formal action must be taken prior to the end of
the fiscal year. Commitments may be changed or removed by the same authority taking the same
formal action that imposed the constraint originally.
Assigned Fund Balance: Fund balances reported as assigned are intended to be used by the City
for specific purposes that are neither restricted nor committed. Intent is expressed by City Council
for the City. The Board of Education has a fund balance policy that allows assigned amounts to be
re-assigned by the Board of Education or School management.
Unassigned Fund Balance: The general fund is the only governmental fund that reports an
unassigned fund balance. The unassigned fund balance has not been restricted, committed or
assigned to a specific purpose within the general fund. In governmental funds other than the
general fund, if expenditures incurred for specific purposes exceed the amounts that are in
restricted, committed or assigned, it may be necessary to report a negative unassigned fund
balance for those governmental funds.
When committed, assigned or unassigned fund balance amounts are available for use, it is the
School's policy and the City's practice to use the committed fund balance first; the assigned fund
balance second; and then the unassigned fund balance as it is needed.
State statutes require the General Purpose School Fund to maintain a minimum unrestricted fund
balance of 3% of current year's expenditures. For the current fiscal year ended June 30, 2022, the
General Purpose School Fund met the minimum fund balance as required by state law.
X. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation,
is employed as an extension of formal budgetary integration in the governmental funds.
Encumbrances outstanding at year-end are reported as assigned fund balances. Unspent budgeted
funds at the end of fiscal year 2022 of$402,349 were encumbered for the State Street Aid Fund.
G26
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
Y. Deferred Outflows/Inflows of Resources
In addition to assets,the statement of net position reports a separate section for deferred outflows
of resources. This separate financial statement element, deferred outFlows of resources, represents
a consumption of net assets that applies to future periods and so will not be recognized as an
outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of
net position reports a separate section for deferred inflows of resources. Deferred inflows of
resources represent an acquisition of net assets that applies to future periods and so will not be
recognized as an inflow of resources (revenue) until that time.
Z. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results could differ from those
estimates.
AA.Recently Adopted New Accounting Pronouncements
GASB Statement No. 87, Leases, became effective for fiscal year ending June 30, 2022. Leases
should be recognized and measured using the facts and circumstances that exist at the beginning
of the period of implementation. Statement No. 87 establishes a single approach to accounting for
and reporting leases by state and local governments. Under this statement, a government entity
that is a lessee must recognize (1) a lease liability, (2) an intangible asset representing the lessee's
right to use the leased asset, (3) report the amortization expense for using the lease asset over
the shorter of the term of the lease or the useful life of the underlying asset, (4) interest expense
on the lease liability and (5) note disclosures about the lease. A lessor must recognize (1) a lease
receivable, (2) deferred inflow of resources, (3) interest revenue on the lease receivable and (4)
note disclosures of leasing arrangements and the total inflows of resources recognized from leases.
BB.Recently Issued Accounting Pronouncements
In March 2020, the GASB issued GASB Statement No. 94, Public-Private and Public-Public
Partnerships and Auailability PaymentArrangements The objective of this Statement is to better
meet the information needs of financial statement users by improving the comparability of financial
statements among governments that enter in PPPs and APAs. Statement No. 94 is effective for
fiscal years beginning after June 15, 2022.
In May 2020,the GASB issued GASB Statement No. 96, Subscription-Basedlnformation Techno%gy
Arrangements This Statement provides guidance on the accounting and financial reporting for
subscription-based information technology arrangements for government end users. Statement No.
96 is effective for fiscal years beginning after June 15, 2022.
G27
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued�
BB.Recentiv Issued Accounting Pronouncements (continued)
In April 2022, the GASB issued GASB Statement No. 99, Omnibus 2022. The objectives of this
Statement are to enhance comparability in accounting and financial reporting and to improve the
consistency of authoritative literature by addressing (1) practice issues that have been identified
during implementation and application of certain GASB Statements and (2)accounting and financial
reporting for financial guarantees. Sections of Statement No. 99 are effective either for fiscal years
beginning after June 15, 202Z or June 15, 2023.
In June 2022, the GASB issued GASB Statement No. 100, Accounting Changes and Error
Corrections-an amendment of GASB Statement No. 62. The primary objective of this Statement is
to enhance accounting and financial reporting requirements for accounting changes and error
corrections to provide more understandable, reliable, relevant, consistent, and comparable
information for making decisions or assessing accountability. Statement No. 100 is effective for
fiscal years beginning after June 15, 2023.
In June 2022, the GASB issued GASB Statement No. 101, Compensated Absences The objective
of this Statement is to better meet the information needs of financial statement users by updating
the recognition and measurement guidance for compensated absences. That objective is achieved
by aligning the recognition and measurement guidance under a unified model and by amending
certain previously required disclosures. Statement No. 101 is effective for fiscal years beginning
after December 15, 2023.
The City has not elected early implementation of these standards and has not completed the
process of evaluating the impact of these statements on its financial statements.
2. DEPOSITS AND INVESTMENTS
A. Deposits
At year-end, the carrying amount of the City's deposits, excluding investments in the LGIP, was
$19,807,629. Deposit policies authorize the City to maintain their operating and excess funds in
bank accounts and certificates of deposit with banks or credit unions that have a branch located
within the Oak Ridge city limits. Banks or credit unions shall be fully insured by the Federal
Depository Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). In
addition, accounts with balances in excess of FDIC or NCUA insurance levels must participate in
the State of Tennessee Bank Collateral Pool.
At June 30, 2022, all deposits were fully insured or held in financial institutions that participate in
the State of Tennessee Bank Collateral Pool.
B. Investments
The City's investments at fiscal year-end were in the LGIP. The responsibility for conducting the
LGIP's investment program resides with the State Treasurer and investments are made in
instruments authorized by TCA Section 9-4-602. The LGIP is a SEC 2a-7-like fund reported at
amortized cost using a stable net asset value and is classified as cash and cash equivalents. The
shares in the LGIP are constant dollar. Therefore, the fair value of the position in the LGIP is the
same as the value of the LGIP shares.
G28
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
2. DEPOSITS AND INVESTMENTS �continued�
B. Investments�continued)
As of June 30, 2022, the City had the following investments and maturities:
Investment Maturities
Less than More than
Fair Value 1 year 1 year
State of Tennessee Local Government
Investment Pool $85,341,702 $85,341,702 $ -
Investment income in the Scholarship Fund for the year ended June 30, 2022 was $583,882.
C. Investment Policies
The City and the Schools maintain similar investment policies with any variances between policies
noted below. The City's investment policies are in accordance with state law which outlines
authorized municipal government investments in TCA Section 6-56-106. The investment policies
exclude investment of bond proceeds held by trustees.
Interest Rate Risk. The City restricts investment length as outlined in TCA 6-56-106, which
generally restricts maturity of not greater than four years from date of investment. The Schools
manage its interest rate risk by limiting the weighted-average maturity of its investment portfolio
to one year or less. No security at the time of purchase shall have a maturity exceeding one year.
The Schools manage its interest rate risk by limiting the weighted-average maturity of its
investment portfolio in the Scholarship Fund to ten years or less. No security, at the time of
purchase in the Scholarship Fund, shall have maturity exceeding ten years.
Credit Risk. State statutes limit the ratings of certain investments and authorize the City and
Schools to invest in obligations of the United States Treasury; certificates of deposit; the LGIP;
bonds of any state or political subdivision rated in the highest category by two nationally recognized
rating services; and nonconvertible debt securities of certain federal government sponsored
enterprises.
CustodialCreditRisk. The City's and School's investment policies require that investment securities
be registered in their own name. All safekeeping receipts for investment instruments are to be held
in accounts in the City's name or the School's name.
Concentration of Credit Risk. The City limits its investment concentration to 40% of the total
portfolio in any one investment type, excluding US Treasury securities and the LGIP, which may be
at 100%. The City also restricts investment purchases from any one financial institution to 60% or
less of the City's total portfolio. The Schools may choose to maintain between 0% to 100%, or any
portion thereon, of its investment portfolio in any approved investment type.
G29
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
2. DEPOSITS AND INVESTMENTS �continued�
D. Component Unit- Foundation
At December 31, 2021, the Education Foundation had the following deposits and investments:
Bank Deposits:
Bank Deposits and Certificates of Deposit $185,096
Investments at Fair Value:
Money Market Accounts 135,762
Mutual Funds 5,142,094
Total Investments 5,277,856
Total $5,462,952
Short-term investments held in money market accounts are reported as investments instead of
cash equivalents because the Foundation holds those funds for restricted purposes.
Investment earnings for 2021 consisted of the following:
Interest and dividends $289,583
Realized gains on investments 5,925
Unrealized gains on investments 316,769
Fees (28,395)
Net $583,882
E. TCRS Stabilization Reserve Trust
Leqal Provisions
The Schools are a member of the TCRS Stabilization Reserve Trust. The Schools have placed funds
into the irrevocable trust as authorized by statute under TCA Title 8, Chapters 34-37. The TCRS
Board of Trustees is responsible for the proper operation and administration of the trust. Funds of
trust members are held and invested in the name of the trust for the benefit of each member. Each
member's funds are restricted for the payment of retirement benefits of that member's employees.
Trust funds are not subject to the claims of general creditors of the Schools.
The trust is authorized to make investments as directed by the TCRS Board of Trustees.The Schools
may not impose any restrictions on investments placed by the trust on their behalf.
G30
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
2. DEPOSITS AND INVESTMENTS �continued�
E. TCRS Stabilization Reserve Trust (continued)
Investment Balances
Assets of the TCRS, including the Stabilization Reserve Trust,are invested in the Tennessee Retiree
Group Trust (TRGT). The TRGT is not registered with the Securities and Exchange Commission
(SEC) as an investment company. The State of Tennessee has not obtained a credit quality rating
for the TRGT from a nationally recognized credit ratings agency. The fair value of investment
positions in the TRGT is determined daily based on the fair value of the pool's underlying portfolio.
Furthermore, TCRS has not obtained or provided any legally binding guarantees to support the
value of participant shares during the fiscal year.There are no restrictions on the sale or redemption
of shares.
Investments are reported at fair value. Securities traded on a national exchange are valued at the
last reported sales price. Investment income consists of realized and unrealized appreciation
(depreciation) in the fair value of investments and interest and dividend income. Interest income
is recognized when earned. Securities and securities transactions are recorded in the financial
statements on a trade-date basis. The fair value of assets of the TRGT held at June 30, 2022,
represents the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants.
Assets held are categorized for fair value measurement within the fair value hierarchy established
by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the
asset and give the highest prioriry to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3
measurements).
Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets that can
be accessed at the measurement date.
Level Z: Quoted prices for similar assets or liabilities in active markets; quoted prices for
identical or similar assets or liabilities in markets that are not active; assets or liabilities that
have a bid-ask spread price in an inactive dealer market, brokered market and principal-to-
principal market; and Level 1 assets or liabilities that are adjusted.
Level3: Valuations derived from valuation techniques with significant unobservable inputs.
Investments where fair value is measured using the net asset value (NAV) per share have no
readily determinable fair value and have been determined to be calculated consistent with FASB
principles for investment companies.
C-31
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
2. DEPOSITS AND INVESTMENTS �continued�
E. TCRS Stabilization Reserve Trust (continued)
Investment Balances (continued�
Where inputs used in the measurement of fair value fall into different levels of the hierarchy, fair
value of the instrument in its entirety is categorized based on the lowest level input that is
significant to the valuation. This assessment requires professional judgement and as such
management of the TRGT developed a fair value committee that worked in conjunction with the
plan's custodian and investment professionals to make these valuations.All assets held were valued
individually and aggregated into classes to be represented in the table below.
Short-term securities generally include investments in money market-type securities reported at
cost plus accrued interest.
Equity and equity derivative securities classified in Level 1 are valued using last reported sales
prices quoted in active markets that can be accessed at the measurement date. Equity and equity
derivative securities classified in Level 2 are securities whose values are derived daily from
associated traded securities. Equity securities classified in Level 3 are valued with last trade data
having limited trading volume.
U.S. Treasury Bills, Bonds, Notes and Futures classified in Level 1 are valued using last reported
sales prices quoted in active markets that can be accessed at the measurement date. Debt and
debt derivative securities classified in Level 2 are valued using a bid-ask spread price from multiple
independent brokers, dealers, or market principals, which are known to be actively involved in the
market. Level 3 debt securities are valued using proprietary information, a single pricing source, or
other unobservable inputs related to similar assets or liabilities.
Real estate investments classified in Level 3 are valued using the last valuations provided by
external investment advisors or independent external appraisers. Generally, all direct real estate
investments are appraised by a qualified independent appraiser(s)with the professional designation
of inember of the Appraisal Institute (MAI), or its equivalent, every three years beginning from the
acquisition date of the property. The appraisals are performed using generally accepted valuation
approaches applicable to the property type.
Investments in private mutual funds, traditional private equity funds, strategic lending funds and
real estate funds that report using GAAP, the fair value, as well as the unfunded commitments,
were determined using the prior quarter's NAV, as reported by the fund managers, plus the current
cash flows. These assets were then categorized by investment strategy. In instances where the
fund investment reported using non-GAAP standards, the investment was valued using the same
method, but was classified in Level 3.
G32
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
2. DEPOSITS AND INVESTMENTS �continued�
E. TCRS Stabilization Reserve Trust (continued)
Teacher Hybrid Plan
At June 30, 2022, the Schools had the following investments held by the trust on its behalf related
to its TCRS Teacher Hybrid Plan:
Weighted
Average
Maturity
Investment (days) Maturities Fair Value
Investments at Fair Value:
U.S. Equity N/A N/A $103,745
Developed Market International Equity N/A N/A 46,853
Emerging Market International Equity N/A N/A 13,386
U.S. Fixed Income N/A N/A 66,932
Real Estate N/A N/A 33,466
Short-term Securities N/A N/A 3,347
Investments at Amortized Cost Using the NAV:
Private Equity and Strategic Lending N/A N/A 66,932
Total $334,661
Amortized
Fair Value Measurements Using Cost
Investment by Fair Value Level Level 1 Level 2 Level 3 NAV
U.S. Equity $103,745 $ - $ - $ -
Developed Market International Equity 46,853 - - -
Emerging Market International Equity 13,386 - - -
U.S. Fixed Income - 66,932 - -
Real Estate - - 33,466 -
Short-term Securities - 3,347 - -
Private Equity and Strategic Lending - - - 66,932
Total $163,984 $70,279 $33,466 $66,932
G33
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
2. DEPOSITS AND INVESTMENTS �continued�
E. TCRS Stabilization Reserve Trust (continued)
Non-Teacher Hybrid Plan
At June 30, 2022, the Schools had the following investments held by the trust on its behalf related
to its TCRS Non-Teacher Hybrid Plan:
Weighted
Average
Maturity
Investment (days) Maturities Fair Value
Investments at Fair Value:
U.S. Equity N/A N/A $ 79,042
Developed Market International Equity N/A N/A 35,696
Emerging Market International Equity N/A N/A 10,199
U.S. Fixed Income N/A N/A 50,994
Real Estate N/A N/A 25,497
Short-term Securities N/A N/A 2,550
Investments at Amortized Cost Using the NAV:
Private Equity and Strategic Lending N/A N/A 50,995
Total $254,973
Amortized
Fair Value Measurements Using Cost
Investment by Fair Value Level Level 1 Level 2 Level 3 NAV
U.S. Equity $ 79,042 $ - $ - $ -
Developed Market International Equity 35,696 - - -
Emerging Market International Equity 10,199 - - -
U.S. Fixed Income - 50,994 - -
Real Estate - - 25,497 -
Short-term Securities - 2,550 - -
Private Equity and Strategic Lending - - - 50,995
Total $124,937 $53,544 $25,497 $50,995
Investment Policies
Risks and Uncertainties The trust's investments include various types of investment funds, which
in turn invest in any combination of stock, bonds and other investments exposed to various risks,
such as interest rate, credit, and market risk. Due to the level of risk associated with certain
investment securities, it is at least reasonably possible that changes in the values of investment
securities will occur in the near term and that such changes could materially affect the amounts
reported for trust investments.
G34
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
2. DEPOSITS AND INVESTMENTS �continued�
E. TCRS Stabilization Reserve Trust (continued)
Investment Policies (continued�
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect
the fair value of an investment. The Schools do not have the ability to limit trust investment
maturities as a means of managing its exposure to fair value losses arising from increasing interest
rates.
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations. The Schools do not have the ability to limit the credit ratings of individual
investments made by the trust.
Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the
magnitude of the trust's investment in a single issuer. The Schools place no limit on the amount
the trust may invest in one issuer.
Custodia/CreditRisk. Custodial credit risk for investments is the risk that, in the event of a failure
of the counterparty to a transaction,the trust will not be able to recover the value of its investments
or collateral securities that are in the possession of an outside party. Pursuant to the trust
agreement, investments are held in the name of the trust for the benefit of the Schools to pay
retirement benefits of School employees.
For further information concerning the Schools' investments with the TCRS Stabilization Reserve
Trust, audited financial statements of the TCRS may be obtained at https://comptroller.tn.gov/
content/dam/cot/sa/advanced-search/disclaimer/2020/ag20045.pdf.
3. FAIR VALUE
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the
fair value of the assets in one of the following categories:
Leve/1: Unadjusted quoted prices for identical assets or liabilities in active markets that can be
assessed at the measurement date.
Level2. Quoted prices for similar assets or liabilities in active markets; quoted prices for identical
or similar assets or liabilities in markets that are not active; assets or liabilities that have a bid-
ask spread price in an inactive dealer market, brokered market and principal-to-principal market;
and Level 1 assets or liabilities that are adjusted.
Level3: Valuations derived from valuation techniques with significant unobservable inputs.
G35
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
3. FAIR VALUE (continued�
The input levels are not applicable to the City's investments in the LGIP as investments are reported at
amortized cost.
The City has the following recurring fair value measurements as of June 30, 2022:
• Investments are measured at fair value based on quoted market prices in active markets (Level
1).
• See Note 2 for measurements of the TCRS Stabilization Reserve Trust.
4. RECEIVABLES
Customers are billed for electric and waterworks services monthly on a cyclical basis. Unbilled revenue
for utility services rendered but not yet billed as of the close of the fiscal year in the amount of
$2,604,639 was recorded in the Electric Fund and $745,900 in Waterworks Fund at June 30, 2022.
Receivables at June 30, 2022, consist of the following:
Customer Gross Allowance for Net
Fund Taxes Accounts Other Receivables Uncollectibles Receivables
General $23,659,259 $ 791,077 $419,440 $24,869,776 $ (747,884) $24,121,892
General Purpose
School - 605,327 - 605,327 - 605,327
Capital Projects - - 95,659 95,659 - 95,659
Debt Service - - 287,205 287,205 - 287,205
Electric - 8,011,850 - 8,011,850 (1,488,196) 6,523,654
Waterworks - 2,242,890 - 2,242,890 - 2,242,890
Nonmajor - 133,232 - 133,232 - 133,232
Total $23,659,259 $11,784,376 $802,304 $36,245,939 $(2,236,080) $34,009,859
5. PROPERTY TAX
All property taxes are assessed on January 1 of each year. Property taxes receivable are recorded at
this lien date. The City's 2021 property tax roll, which funded fiscal year 2022, was levied on July 1,
2021, on the assessed value as listed by the applicable County Assessor's Office and was delinquent
on September 1, 2021. The revenue from that levy was recognized in the fiscal year beginning July 1,
2021,the year which it is intended to finance. The revenue from the City's 2022 levy will be recognized
in the fiscal year beginning July 1, 20Z2, the year which it is intended to finance. The amount of
deferred property taxes recorded in the General Fund at June 30, 2022, is $23,386,813. The City's
2022 property tax roll, which funds fiscal year 2023, was levied on July 1, 2022, and was delinquent
on September 1, 2022.
G36
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
5. PROPERTY TAX(continued�
Assessed values are reviewed and approved by the State of Tennessee at the following rates of
assumed market value:
Public Utility Property 55%
Telecommunications and Railroads 40%
Industrial and Commercial Property
Real 40%
Personal 30%
Residential Property 25%
The City is on a 5 year reappraisal cycle. The last reappraisal was completed for the 2021 fiscal year.
The assessed value for the 2022 fiscal year list was $957,351,324. The appraised value was
$3,188,494,413 making the total assessed value approximately 30% of the total appraised value.
Taxes were levied at a rate of $2.3136 per $100 of assessed value for the 2021 and 2022 fiscal
years. Current tax collections of $21,511,750 for the fiscal year ended June 30, 2022, were
approximately 97.2% of the tax levy.
6. RESTRICTED ASSETS
The governmental and proprietary funds cash and cash equivalents classified as restricted assets at
June 30, 2022, are as indicated below:
Governmental-type Activities Business-type Activities
General Debt Capital
Fund Service Projects Electric Waterworks
Fund Fund Fund Fund Total
Capital Projects
Bond Proceeds $ - $ - $4,697,776 $1,170,647 $185,542 $6,053,965
Retainage - - 447,025 - - 447,025
Donations - - 600,000 - - 600,000
Debt Service - 4,703,984 - - - 4,703,984
Grants 661,071 - - - - 661,071
Total $661,071 $4,703,984 $5,744,801 $1,170,647 $185,542 $12,466,045
G37
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
7. CAPITAL ASSETS
Capital asset activity for the governmental activities for the year ended June 30, 2022, is as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital Assets Not Being Depreciated:
Land $ 3,342,472 $ 70,690 $ - $ 3,413,162
Construction in Progress 1,592,678 8,751,596 (707,405) 9,636,869
Total Capital Assets Not Being
Depreciated 4,935,150 8,822,286 (707,405) 13,050,031
Capital Assets Being Depreciated:
Infrastructure 62,675,010 2,326,780 - 65,001,790
Buildings 156,992,008 2,360,109 - 159,352,117
Improvements Other than Buildings 24,937,472 117,114 - 25,054,586
Machinery and Equipment 36,258,376 1,108,730 (295,027) 37,072,079
Right-To-Use Leased Equipment 971,596 - - 971,596
Total Capital Assets Being Depreciated 281,834,462 5,912,733 (295,027) 287,452,168
Less Accumulated Depreciation:
Infrastructure (30,283,291) (1,300,036) - (31,583,327)
Buildings (73,730,538) (3,381,738) - (77,112,276)
Improvements Other than Buildings (12,737,514) (1,114,977) - (13,852,491)
Machinery and Equipment (26,315,411) (2,003,133) 283,455 (28,035,089)
Right-To-Use Leased Equipment (453,411) (64,773) - (518,184)
Total Accumulated Depreciation (143,520,165) (7,864,657) 283,455 (151,101,367)
Total Capital Assets Being
Depreciated, Net 138,314,297 (1,951,924) (11,572) 136,350,801
Governmental Activities Capital
Assets, Net $143,249,447 $ 6,870,362 $(718,977) $149,400,832
Depreciation was charged to functions of the primary government as follows:
General government $ 108,790
Public safety 873,241
Public works 1,953,148
Community service 1,176,321
Education 3,753,157
Total depreciation expense $7,864,657
G38
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
7. CAPITAL ASSETS (continued�
Capital asset activity for the business-type activities for the year ended June 30, 2022, is as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital Assets Not Being Depreciated:
Land $ 900,643 $ - $ - $ 900,643
Construction in Progress 3,123,164 5,775,659 (4,859,063) 4,039,760
Total Capital Assets Not Being
Depreciated 4,023,807 5,775,659 (4,859,063) 4,940,403
Capital Assets Being Depreciated:
Electric Plant in Service
Transmission 12,502,022 107,798 - 12,609,820
Distribution 91,601,362 2,372,068 (231,057) 93,742,373
Water Plant in Service 81,219,343 1,619,922 - 82,839,265
Wastewater Plant in Service 119,593,743 1,636,742 - 121,230,485
Equipment 16,828,352 311,946 (434,569) 16,705,729
Total Capital Assets Being Depreciated 321,744,822 6,048,476 (665,626) 327,127,672
Less Accumulated Depreciation:
Electric Plant in Service
Transmission (6,834,546) (365,759) - (7,200,305)
Distribution (40,601,519) (2,662,272) 485,145 (42,778,646)
Water Plant in Service (43,762,920) (2,595,557) - (46,358,477)
Wastewater Plant in Service (51,400,508) (3,093,974) - (54,494,482)
Equipment (6,894,676) (871,761) 406,129 (7,360,308)
Total Accumulated Depreciation (149,494,169) (9,589,323) 891,274 (158,192,218)
Total Capital Assets Being
Depreciated, Net 172,250,653 (3,540,847) 225,648 168,935,454
Business-type Activities Capital
Assets, Net $176,274,460 $2,234,812 $(4,633,415) $173,875,857
Depreciation was charged to business-type activities of the primary government as follows:
Electric $ 3,253,829
Waterworks 5,944,433
Emergency Communications 391,061
Total depreciation expense $ 9,589,323
G39
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
8. DEPARTMENT OF ENERGY
The Department of Energy(DOE) has three major facilities in Oak Ridge. Oak Ridge National Laboratory
(ORNL), one of the nation's largest multipurpose research and development centers, focuses its
programs on materials, nuclear science, neutron science, energy, high-performance computing,
systems biology, and national security. The former Oak Ridge K-25 Gaseous Diffusion Plant site, now
known as the East Tennessee Technology Park(ETTP), is a focal point for developing hazardous waste
management impoundment and storage. Oak Ridge Y-12 plant is a highly sophisticated manufacturing
and developmental engineering organization engaged primarily in programs vital to national defense.
UT-Battelle, URS/CH2M Oak Ridge LLC(UCOR), and Consolidated Nuclear Security LLC,the contractors
that operate the three major facilities, are the major employers in Oak Ridge. DOE facilities account
for 22% of water revenues and 19% of wastewater revenues. Since DOE purchases electricity directly
from TVA, DOE does not purchase power from the City. The City receives financial assistance and in-
lieu of tax payments from DOE. The City received $1,694,737 from DOE in tax payments in fiscal 2022.
The annual payments are subject to congressional appropriation.
The City has agreements with the National Nuclear Security Administration (NNSA) of DOE to perform fire
and emergency medical response duties to the west end of Oak Ridge and the NNSA facilities in the response
area. The Ciry received $1,433,097 from NNSA in fiscal year 2022 related to these services.
9. LONG-TERM LIABILITIES
A. Governmental Activities
The following is a summary of changes in long-term liabilities for the governmental activities,
excluding changes in the net pension liability and total other postemployment benefits liability
which are described in Note 10 and Note 11, respectively, for the year ended June 30, 2022:
Beginning Retirements/ Ending Due Within
Balances Additions Reductions Balances One Year
General Fund:
General Obligation Bonds $74,075,000 $7,970,000 $(4,830,000) $77,215,000 $4,185,000
Notes Payable 10,202,198 - (713,276) 9,488,922 1,345,724
Unamortized Bond Premium 6,989,506 676,481 (658,867) 7,007,120 525,435
Leases 60,809 - (60,809) - -
Compensated Absences 2,750,321 2,330,564 (2,540,125) 2,540,760 2,540,760
Termination Benefits 557,478 117,202 (87,245) 587,435 115,082
City Equipment Replacement Rental Fund:
General Obligation Bonds 795,000 - (100,000) 695,000 100,000
Unamortized Bond Premium 85,006 - (12,290) 72,716 12,290
Leases 447,950 - (83,697) 364,253 86,546
Compensated Absences 81,123 84,717 (77,546) 88,294 88,294
Total Long-Term Liabilities—
Governmental Activities $96,044,391 $11,178,964 $(9,163,855) $98,059,500 $8,999,131
G40
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
A. Governmental Activities (continued)
The City's outstanding notes and bonds payable for the governmental activities contain provisions
that in an event of default, outstanding amounts are to become immediately due if the City is
unable to make payment.
Compensated absences for the governmental activities are generally liquidated by the General
Fund, General Purpose School Fund and City Equipment Replacement Rental Fund. The School
termination benefits are liquidated by the General Purpose School Fund. The State of Tennessee
makes on-behalf payments for the other postemployment benefit(OPEB) obligation for the school
teachers as described in Note 12.
General Obligation Bonds— Debt Service Fund
In November 2017, the City issued $19,125,000 in General Obligation Bonds Series 2017, including
$7,870,000 in the Debt Service Fund for various city and school capital projects. The interest rate
ranges from 2.25% to 5% with maturity in 2033. The principal balance of the bonds outstanding
relating to the Debt Service Fund is $6,015,000 at June 30, 2022.
In December 2018, the City issued $13,285,000 in General Obligation Bonds Series 2018 for the
design and construction of a new Preschool and Senior Center, relocation and redevelopment of
Scarboro Park and other public building improvements. The interest rate ranges from 3% to 5%
with maturity in 2043. The principal balance of the bonds outstanding is $12,905,000 at June 30,
2022.
In September 2019, the City issued $28,295,000 in General Obligation Refunding Bonds Series
2019 of which $19,320,000 is attributable to the Debt Service Fund. The City used $14,665,000 of
the proceeds for a current refunding of the outstanding General Obligation Refunding Bonds Series
2009 and 2009B BABS. The City also used $4,655,000 of the proceeds for public building
improvements. The interest rate ranges from 2% to 5% with maturity in 2038. The principal
balance of the bonds outstanding relating to the Debt Service Fund is $13,035,000 at June 30,
2022.
In December 2020,the City issued $9,000,000 in General Obligation Refunding Bonds Series 2020A
for a current refunding of the outstanding Series VI-M-1 bonds of $4,735,000 and a current
refunding of a portion of the Series VII-E-1 bonds of $4,800,000. The interest rate ranges from
1% to 5% with maturity in 2035. The principal balance of the bonds outstanding is $9,000,000 at
June 30, 2022.
In December 2020,the City issued $3,135,000 in General Obligation Bonds Series 2020B(Federally
Taxable) to terminate the outstanding Series VI-H-1 — Refunded to Series VII-E-1 and Series VI-
M-1 interest rate swap. The interest rate ranges from 0.4% to 1% with maturity in 2027. The
principal balance of the bonds outstanding is $3,035,000 at June 30, 2022.
In June 2021, the City issued $40,300,000 in General Obligation Refunding Bonds Series 2021A of
which $25,735,000 is attributable to the Debt Service Fund for a current refunding of the
outstanding General Obligation Refunding Bonds Series 2015A, General Obligation Refunding
Bonds, Series 2015B, and Series VII-E-1 bonds. The interest rate ranges from 2% to 5% with
maturity in 2035. The principal balance of the bonds outstanding relating to the Debt Service Fund
is $25,495,000 at June 30, 2022.
C-41
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
A. Governmental Activities (continued)
General Obligation Bonds— Debt Service Fund (continued�
In September 2021, the City issued $8,870,000 in General Obligation Bonds Series 2021C of which
$7,970,000 is attributable to the Capital Projects Fund. Proceeds are for energy savings projects,
roof replacement, building remodels, and electrical equipment. These bonds were issued at a
premium of$676,481. The underwriter's discount was $52,025 with an additional $69,456 in other
issuance costs. The interest rate ranges from 1.35% to 4% with maturity in 2041. The principal
balance of the bonds outstanding relating to the Debt Service Fund is$7,730,000 at June 30, 2022.
Debt service requirements to maturiry for general obligation bonds as of June 30, 2022, are as
follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $ 4,185,000 $ 2,520,769 $ 6,705,769
2024 4,450,000 2,319,019 6,769,019
2025 3,840,000 2,104,019 5,944,019
2026 3,645,000 1,919,519 5,564,519
2027 3,920,000 1,794,019 5,714,019
2028-2032 29,865,000 6,025,050 35,890,050
2033-2037 20,260,000 2,262,979 22,522,979
2038-2042 6,180,000 723,949 6,903,949
2043 870,000 32,624 902,624
Total $77,215,000 $19,701,947 $96,916,947
Notes Payable— Debt Service Fund
On April 16, 2008, the City executed a loan agreement with the TMBF for $11,000,000 of which
$7,752,288 was used to fund costs for renovation and new construction of the ORHS project and
other school capital projects. At June 30, 2022, the outstanding principal balance of the loan is
$7,052,288. Principal payments began in 2014 with maturity in 2027. Annual interest payments
are amortized below using a 1.44% interest rate, which was the actual weekly rate at
June 30, 2022.
In October 2017,the City issued a $3,000,000 Energy Efficient Schools Capital Outlay Note to make
energy efficient improvements to various school buildings. At June 30, 2022, the outstanding
principal balance of the loan is $2,436,634. The interest rate on this loan is 1.00% with maturity
in 2032.
G42
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
A. Governmental Activities (continued)
Notes Payable— Debt Service Fund (continuedl
Projected debt service requirements to maturity for Debt Service Fund notes payable as of June
30, 2022, are as follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $ 1,345,724 $ 123,794 $ 1,469,518
2024 1,023,196 105,821 1,129,017
2025 1,805,692 91,206 1,896,898
2026 2,158,212 65,811 2,224,023
2027 1,973,044 35,976 2,009,020
2028-2032 1,183,054 27,323 1,210,377
Total $9,488,922 $449,931 $9,938,853
General Obligation Bonds - City Equipment Replacement Fund
In November 2017, the City issued $19,125,000 in General Obligation Bonds Series 2017, including
$1,065,000 for the City Equipment Replacement Fund. The interest rate ranges from 2.25%to 5%
with maturity in 2028. The principal balance of the bonds outstanding is $695,000 at June 30,
202Z.
Debt service requirements to maturity for Equipment Replacement Rental Fund general obligation
debt as of June 30, 2022, are as follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $100,000 $27,613 $127,613
2024 110,000 22,613 132,613
2025 115,000 17,113 132,113
2026 1Z0,000 11,363 131,363
2027 125,000 6,563 131,563
2028 125,000 3,750 128,750
Total $695,000 $89,015 $784,015
Leases
In fiscal year 2022, the City entered into a four-year lease agreement as lessee for the acquisition
and use of 72 golf carts. Delivery of the golf carts and commencement of the lease has not yet
occurred. Upon commencement, the City is required to make monthly principal and interest
payments of$8,181. The lease has an interest rate of 18%.
G43
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
A. Governmental Activities (continued)
Leases (continued�
In fiscal year 2014, the City entered into a $964,291 lease for two fire pumper trucks which were
delivered to the City in August 2014. Terms of the lease call for annual lease payments of$98,937
from November 2014 to November 2025. Interest is at 3.35%. The principal balance is $364,252
at June 30, 2022.
Principal and interest requirements for governmental leases for the fiscal year ended June 30, 2022
are as follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $86,546 $12,391 $98,937
2024 89,490 9,447 98,937
2025 92,534 6,403 98,937
2026 95,682 3,255 98,937
Total $364,252 $31,496 $395,748
B. Business-type Activities
The following is a summary of changes in long-term liabilities for the business-type activities,
excluding changes in the net pension liability and total other postemployment benefits liability
which are described in Note 10 and Note 11, respectively, for the year ended June 30, 2022:
Beginning Retirements/ Ending Due Within
Balances Additions Reductions Balances One Year
Electric Fund:
Bonds $11,765,000 $ 900,000 $ (920,000) $11,745,000 $1,000,000
Notes Payable 1,283,296 - - 1,283,296 -
Unamortized Bond Premium 978,293 78,298 (99,746) 956,845 100,742
Compensated Absences 274,728 286,898 (332,612) 229,014 229,014
Waterworks Fund:
General Obligation Bonds 33,540,000 - (2,170,000) 31,370,000 2,540,000
Notes Payable 1,683,416 - (229,000) 1,454,416 160,000
State Revolving Fund Loan 18,788,330 - (1,068,036) 17,720,294 1,082,232
Unamortized Bond Premium 3,693,718 - (371,675) 3,322,043 371,676
Compensated Absences 552,210 576,674 (625,926) 502,958 502,958
Emergency Communications Fund:
Bonds 1,360,000 - (170,000) 1,190,000 175,000
Unamortized Bond Premium 139,708 - (20,199) 119,509 20,199
Total Long-Term Liabilities-
Business-type Activities $74,058,699 $1,841,870 $(6,007,194) $69,893,375 $6,181,821
G44
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
B. Business-tvpe Activities (continued)
The City's outstanding notes and bonds payable for the business-type activities contain provisions
that in an event of default, outstanding amounts are to become immediately due if the City is
unable to make payment.
Compensated absences for the business-type activities are generally liquidated by the Electric Fund
and Waterworks fund.
Annual principal and interest payments on notes payable and general obligation bonds for the
Electric Fund of $1,353,638 in 2022 were 15% of the net revenue available for debt service of
$8,740,292.
Annual principal and interest payments on notes payable and general obligation bonds for the
Waterworks Fund of $5,213,687 in 2022 were 47% of the net revenue available for debt service
of$11,168,255.
General Obligation Bonds— Electric Fund
In November 2017,the City issued $19,125,000 in General Obligation Refunding Bonds Series 2017
of which $7,520,000 is attributable to the Electric Fund. The City used $6,220,000 of the proceeds
with $628,888 in City contributions for an advance refunding of $6,970,000 for the outstanding
2020 to 2025 maturities of the General Obligation Refunding Bonds Series 2009.The City also used
$1,300,000 of the proceeds for Electric Fund capital projects. The interest rate ranges from 2.25%
to 5% with maturity in 2030. The principal balance of the bonds relating to the Electric Fund is
$5,380,000 at June 30, 2022.
In September 2019, the City issued $28,295,000 in General Obligation Refunding Bonds Series
2019. The City used $4,810,000 of the proceeds for the Electric Fund for a current refunding of
the outstanding 2009B BABS. The interest rate ranges from 2% to 5% with maturity in 2038. The
principal balance of the bonds outstanding relating to the Electric Fund is $4,800,000 at June 30,
2022.
In June 2021, the City issued $40,300,000 in General Obligation Refunding Bonds Series 2021A of
which $820,000 is attributable to the Electric Fund for a current refunding of the outstanding
General Obligation Refunding Bonds Series 2016. The interest rate is 5% with maturity in 2026.
The principal balance of the bonds outstanding relating to the Electric Fund is $665,000 at June
30, 2022.
In September 2021, the City issued $8,870,000 in General Obligation Bonds Series 2021C of which
$900,000 is attributable to the Electric Fund. Proceeds are for energy savings projects, roof
replacement, building remodels, and electrical equipment. These bonds were issued at a premium
of $78,298. The underwriter's discount was $7,836 with an additional $10,462 in other issuance
costs. The interest rate ranges from 1.35% to 4% with maturity in 2041. The principal balance of
the bonds outstanding is $900,000 at June 30, 2022.
G45
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
B. Business-tvpe Activities (continued)
General Obligation Bonds— Electric Fund (continued�
Debt service requirements to maturity for bonds funded by the Electric Fund for the fiscal year
ended June 30, 2022, are as follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $ 1,000,000 $ 383,868 $ 1,383,868
2024 760,000 334,218 1,094,218
2025 795,000 296,568 1,091,568
2026 800,000 257,218 1,057,218
2027 880,000 223,418 1,103,418
2028-2032 4,505,000 635,805 5,140,805
2033-2037 2,365,000 218,531 2,583,531
2038 -2041 640,000 20,738 660,738
Total $11,745,000 $2,370,364 $14,115,364
Notes Payable— Electric Fund
In April 2008, the City executed an $11,000,000 loan agreement through the TMBF for school,
electric and waterworks improvements. The outstanding principal balance of the Electric Fund loan
liability is $1,283,296 at June 30, 2022. Principal payments occur through 2027. Annual interest
payments are amortized below using a 1.44% interest rate, which was the actual weekly rate at
June 30, 2022.
Projected debt service requirements to maturity as of June 30, 2022, are as follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $ - $ 18,535 $ 18,535
2024 290,000 18,190 308,190
2025 305,000 13,984 318,984
2026 355,000 9,520 364,520
2027 333,296 4,418 337,714
Total $1,283,296 $64,647 $1,347,943
General Obligation Bonds—Waterworks Fund
On August 15, 2013, the City issued $23,205,000 in General Obligation Bonds Series 2013 which
refunded the outstanding Series 2003 General Obligation Bonds and the 1997, 1998 and 2002
State Revolving Fund (SRF) Loans. The Series 2013 Bonds refunded $19,881,973 in outstanding
debt, including $15,112,030 in SRF wastewater loans and provided an approximate $3,000,000 in
additional funding for sewer projects and $600,000 for water projects. Interest rates range from
2% to 4.375% with the bonds maturing in 2034. The principal balance of the bonds outstanding
at June 30, 2022 is $13,780,000.
G46
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
B. Business-tvpe Activities (continued)
General Obliqation Bonds—Waterworks Fund (continued)
In November 2017, the City issued $19,125,000 in General Obligation Bonds Series 2017, including
$980,000 for the Waterworks Fund for capital improvements to the City's water and wastewater
system. The interest rate ranges from 2.25% to 5% with maturity in 2028. The principal balance
of the bonds relating to the Waterworks Fund is $695,000 at June 30, 20Z2.
In September 2019, the City issued $28,295,000 in General Obligation Refunding Bonds Series
2019. The City used $4,165,000 of the proceeds for the Waterworks Fund for a current refunding
of the outstanding 2009B BABS. The interest rate ranges from 3% to 5% with maturity in 2030.
The principal balance of the bonds relating to the Waterworks Fund is$4,165,000 at June 30, 2022.
In June 2021, the City issued $40,300,000 in General Obligation Refunding Bonds Series 2021A of
which $13,745,000 is attributable to the Waterworks Fund for a current refunding of the
outstanding General Obligation Bonds Series 2011B, General Obligation Refunding Bonds Series
2016, and SRF 2019-216 loan. The interest rate ranges from 2% to 5% with maturity in 2033. The
principal balance of the bonds outstanding relating to the Waterworks Fund is $12,730,000 at June
30, 2022.
Debt service requirements to maturity for bonds funded by the Waterworks Fund for the fiscal year
ended June 30, 2022, are as follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $ 2,540,000 $1,377,350 $ 3,917,350
2024 2,585,000 1,254,100 3,839,100
2025 2,635,000 1,130,550 3,765,550
2026 2,655,000 1,004,600 3,659,600
2027 2,780,000 878,388 3,658,388
2028-2032 13,955,000 2,463,988 16,418,988
2033-2034 4,220,000 255,518 4,475,518
Total $31,370,000 $8,364,494 $39,734,494
Notes Payable—Waterworks Fund
In April 2008, the City executed an $11,000,000 loan agreement through the TMBF for school,
electric and waterworks improvements. The outstanding principal balance of the Waterworks Fund
portion of the loan was $1,454,416 at June 30, 2022. Principal payments occur through 2027.
Annual interest payments are amortized below using a 1.44% interest rate, which was the actual
weekly rate at June 30, 2022.
In October 2019, the City closed on a $20,656,145 Water Infrastructure Finance and Innovation
Act (WIFIA) loan with the Environmental Protection Agency. The loan has a 2.08% interest rate
and a term of 38-years. No funds have yet been drawn on this loan.
G47
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
B. Business-tvpe Activities (continued)
Notes Payable—Waterworks Fund (continued�
Projected debt service requirements to maturity as of June 30, 2022, for the TMBF loans are as
follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $ 160,000 $20,816 $ 180,816
2024 295,000 18,345 313,345
2025 315,000 14,061 329,061
2026 335,000 9,487 344,487
2027 349,416 4,632 354,048
Total $1,454,416 $67,341 $1,521,757
Tennessee State Revolving Fund (SRF) —Waterworks Fund
Loans through the SRF are draw loans whereby funding draws occur after expenditures for projects
are made by the City. Debt service payments are funded by Waterworks Fund revenues from
residential and commercial wastewater fees. The City has pledged its State-shared tax revenues
(state sales, gasoline, beer, TVA replacement, mixed drinks, alcoholic beverages and income tax)
as collateral for the loans. It is not anticipated that revenues from these sources will be required
to fund the debt service on these loans.
In June 2013, the State approved the SRF 2013-324 and SRF 2013-325 loans to fund wastewater
projects mandated to meet terms of an Administrative Order (AO) from the United States
Environmental Protection Agency (EPA). The SRF 2013-324 loan was approved for $4,000,000 of
which $3,988,925 was drawn and includes a 10% principal forgiveness. The SRF 2013-325 loan
was approved for $14,000,000 of which $12,370,924 was drawn. The interest rate, including fees,
is 1.23%. Principal payments occur through 2037. The outstanding principal balance of these loans
is $2,726,009 and $9,308,104, respectively, at June 30, 2022.
In May 2014, the State approved the SRF 2014-337 loan to complete the capital projects required
to meet the EPA A0. The loan was approved for $3,000,000 of which $2,617,943 was drawn. The
interest rate, including fees, is 1.81%. Principal payments occur through 2037. The outstanding
principal balance of this loan is $1,994,438 at June 30, 2022.
In April 2017, the State approved the SRF 2017-356 loan to perform lining and replacement of
sewer lines, manhole rehabilitation and replacement of manhole frames and covers. The loan was
approved for$2,000,000 of which $1,923,196 was drawn and includes a 7% principal forgiveness.
The interest rate, including fees, is 1.97%. Principal payments occur through 2041.The outstanding
principal balance of this loan is $1,663,956 at June 30, 2022.
In June 2017, the State approved the SRF 2017-396 loan to perform improvements on the Turtle
Park Wastewater Pumping Station. The loan was approved for $3,100,000 of which $2,335,805
was drawn. The interest rate, including fees, on this loan is 1.69%. Principal payments occur
through 2039. The outstanding principal balance of this loan is $2,027,787 at June 30, 2022.
G48
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
B. Business-tvpe Activities (continued)
Tennessee State Revolvin_ F�(SRF) —Waterworks Fund (continued�
In July 2022, the State approved the SRF 2021-455 loan for rehabilitation of the sewer collection
system. The loan was approved for $1,900,000. The interest rate, including fees, on this loan is
2.5%. Principal payments will begin once the project is substantially complete.
In July 2022,the State approved the DWF 2022-253 loan for construction of a new water treatment
plant. The loan was approved for $30,000,000. The interest rate, including fees, on this loan is
2.48%. Principal payments will begin once the project is substantially complete.
Debt service requirements to maturity for outstanding SRF loans for the fiscal year ended June 30,
2022, are as follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $ 1,082,232 $ 245,868 $ 1,328,100
2024 1,096,632 230,592 1,327,224
2025 1,111,236 215,112 1,326,348
2026 1,126,032 199,404 1,325,436
2027 1,141,032 183,504 1,324,536
2028-2032 5,937,708 670,944 6,608,652
2033-2037 5,628,599 241,604 5,870,203
2038-2041 596,823 16,070 612,893
Total $17,720,294 $2,003,098 $19,723,392
General Obligation Bonds— Emergency Communications District Fund
In November 2017, the City issued $19,125,000 in General Obligation Refunding Bonds Series
2017. $1,690,000 of the proceeds were used by the Emergency Communications District Fund for
replacement and upgrade of the City's radio system to be used primarily by the City's police and
fire departments. The interest rate ranges from 2.25% to 5% with maturity in 2028. The
outstanding principal balance related to the Emergency Communications District Fund was
$1,190,000 at June 30, 2022.
Debt service requirements to maturity for bonds funded by the Emergency Communications District
Fund for the fiscal year ended June 30, 2022, are as follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $ 175,000 $ 47,238 $ 222,238
2024 185,000 38,487 223,487
2025 195,000 29,238 224,238
2026 205,000 19,487 224,487
2027 215,000 11,288 226,288
2028 215,000 6,450 221,450
Total $1,190,000 $152,188 $1,342,188
G49
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
9. LONG-TERM LIABILITIES (continued�
C. Oak Ridge Land Bank
The Land Bank had a $45,000 line of credit with a financial institution that expired on May 8, 2022. In
July 2022, the Land Bank executed an amended $45,000 line of credit. Interest on any unpaid principal
balance is 2.05%. The line of credit expires on July 6, 2025 and is collateralized with a bank account
with a balance of$91,393 as of June 30, 2022.
The Land Bank has a promissory note with a financial institution. The promissory note has an
outstanding balance of$853,278 as of June 30, 2022, and bears interest at the Prime Rate less 0.25%
(4.50% as of June 30, 2022). All outstanding principal is payable on May 17, 2023. This note is secured
by property with a carrying amount of approximately $1,484,000. As of June 30, 2022, the Land Bank
does not have the available working capital to make the debt payment on May 17, 2023. However, the
Land Bank is in the process of negotiating a contract to sell the property that secures the promissory
note. If a contract is not finalized before the debt payment is due, management expects to be able to
negotiate a renewal of the outstanding promissory note.
10. PENSION PLANS
For the year ended June 30, 2022, the City recognized a net pension asset, a net pension liability,
deferred outflows of resources related to pensions, deferred inflows of resources related to pensions,
and pension expense as follows:
Deferred Deferred
Outflows of Inflows of
Net Net Resources Resources
Pension Pension Related to Related to Pension
Pension Plan Asset Liability Pensions Pensions Expense
Public Employee Retirement
Plan of the TCRS $3,905,802 $ - $11,423,326 $16,047,815 $ (380,450)
Public Employee Retirement
Plan of the TCRS (Schools) 5,755,727 - 1,392,061 4,611,205 (712,006)
Teacher Retirement Plan of
the TCRS 324,548 - 240,965 275,788 37,347
Teacher Legacy Pension
Plan of the TCRS 34,458,664 - 12,024,977 30,534,524 (5,405,957)
Board of Education Hybrid
with Cost Controls 185,759 - 240,426 110,865 12,163
Total $44,630,500 $ - $25,321,755 $51,580,197 $(6,448,903)
A. Citv Emplovees— Public Emplovee Retirement Plan of the TCRS
General Information About the Pension Plan
Plan Description: Employees of the City are provided a defined benefit pension plan through the
Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the
TCRS. The TCRS was created by state statute under TCA Title 8, Chapters 34-37. The TCRS Board
of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee
Treasury Department, an agency in the legislative branch of state government, administers the
plans of the TCRS.
G50
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
A. City Emplovees— Public Employee Retirement Plan of the TCRS
General Information About the Pension Plan
The TCRS issues a publicly available financial report that can be obtained at
https://treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies.
P/an Description: Employees of the City are provided a defined benefit pension plan through the
Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the
TCRS. The TCRS was created by state statute under TCA Title 8, Chapters 34-37. The TCRS Board
of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee
Treasury Department, an agency in the legislative branch of state government, administers the
plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at
https://treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies.
Benefits Pro�idec�`. TCA Title 8, Chapters 34-37, establishes the benefit terms and can be amended
only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms
permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with 5
years of service credit or after 30 years of service credit regardless of age. Benefits are determined
by a formula using the member's highest five consecutive year average compensation and the
member's service credit. Reduced benefits for early retirement are available at age 55 and vested.
Members vest with five years of service credit. Service-related disability benefits are provided
regardless of length of service. Five years of service is required for nonservice-related disability
eligibility. The service-related and nonservice-related disability benefits are determined in the same
manner as a service retirement benefit but are reduced 10 percent and include projected service
credits. A variety of death benefits are available under various eligibility criteria.
Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs)
after retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July of the
previous year. The COLA is based on the change in the consumer price index (CPI) during the prior
calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the
change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change
is between one-half percent and one percent. A member who leaves employment may withdraw
their employee contributions, plus any accumulated interest.
Employees Covered by Benefit Terms At the measurement date of June 30, 2021, the following
employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 285
Inactive employees entitled to but not yet receiving benefits 225
Active employees 374
Total employees 884
G51
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
A. City Emplovees— Public Employee Retirement Plan of the TCRS (continued)
General Information About the Pension Plan (continued�
Contributions Contributions for employees are established in the statutes governing the TCRS and
may only be changed by the Tennessee General Assembly. Employees are noncontributory. The
City makes employer contributions at the rate set by the Board of Trustees as determined by an
actuarial valuation. For the year ended June 30, 2022,the employer contributions for the City were
$3,579,005 based on a rate of 16.00 percent of covered payroll. By law, employer contributions
are required to be paid. The TCRS may intercept the City's state shared taxes if required employer
contributions are not remitted. The employer's actuarially determined contribution (ADC) and
member contributions are expected to finance the costs of benefits earned by members during the
year, the cost of administration, as well as an amortized portion of any unfunded liability.
Net Pension Liabilit�(Asset�
Pension Liabilities (Assets): The City's net pension liability (asset) was measured as of June 30,
2021, and the total pension liability used to calculate net pension liability (asset) was determined
by an actuarial valuation as of that date.
Actuarial Assumptions The total pension liability in the June 30, 2021 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.25 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based
on age, including inflation, averaging 4.00 percent
Investment rate of return 6.75 percent, net of pension plan investment
expenses, including inflation
Cost-of-living adjustment 2.125 percent
Mortality rates were based on actual experience including an adjustment for some anticipated
improvement.
The actuarial assumptions used in the June 30, 2021 actuarial valuation were based on the results
of an actuarial experience study performed for the period July 1, 2016 through June 30, 2020. The
demographic assumptions were adjusted to more closely reflect actual and expected future
experience.
Changes ofAssumptions In 2021, the following assumptions were changed: decreased inflation
rate from 2.50 percent to 2.25 percent; decreased the investment rate of return from 7.25 percent
to 6.75 percent; decreased the cost-of-living adjustment from 2.25 percent to 2.125 percent; and
modified mortality assumptions.
G52
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
A. City Emaloyees— Public Employee Retirement Plan of the TCRS (continued)
Net Pension Liabilit�(AssetZ(continued�
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees in conjunction with the June 30, 2020 actuarial experience study. A blend of
future capital market projections and historical market returns was used in a building-block method
in which a best-estimate of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) is developed for each major asset class. These best
estimates are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation of 2.25 percent.
The best-estimates of geometric real rates of return and the TCRS investment policy target asset
allocation for each major asset class are summarized in the following table:
Long-Term
Expected Real Target
Asset Class Rate of Return Allocation
U.S. equity 4.88% 31%
Developed market international equity 5.37% 14%
Emerging market international equity 6.09% 4%
Private equity and strategic lending 6.57% 20%
U.S. fixed income 1.20% 20%
Real estate 4.38% 10%
Short-term securities 0.00% 1%
100%
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees as 6.75 percent based on a blending of the factors described above.
DiscountRate: The discount rate used to measure the total pension liability was 6.75 percent. The
projection of cash flows used to determine the discount rate assumed that employee contributions
will be made at the current rate and that contributions from the City will be made at the actuarially
determined contribution rate pursuant to an actuarial valuation in accordance with the funding
policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make
projected future benefit payments of current active and inactive members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
G53
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
A. City Emaloyees— Public Employee Retirement Plan of the TCRS (continued)
Changes in the Net Pension Liabilit�(Asset�
Increase (Decrease)
Net Pension
Total Pension Plan Fiduciary Liability
Liability Net Position (Asset)
(a) (b) (a) — (b)
Balance at 7une 30, 2020 $115,696,891 $106,806,888 $ 8,890,003
Changes for the year:
Service cost 1,653,787 - 1,653,787
Interest 8,Z65,623 - 8,265,623
Differences between expected and
actual experience (1,063,278) - (1,063,278)
Changes in assumptions 8,818,431 - 8,818,431
Contributions—employer - 3,381,158 (3,381,158)
Net investment income - 27,122,521 (27,122,521)
Benefit payments, including
refunds of employee contributions (6,684,163) (6,684,163) -
Administrative expenses - (33,311) 33,311
Net changes 10,990,400 23,786,205 (12,795,805)
Balance at June 30, 2021 $126,687,291 $130,593,093 $ (3,905,802)
Sensitivity of the Net Pension Liabilit�(Asset) to Changes in the Discount Rate
The following presents the net pension liability (asset) of the City calculated using the discount
rate of 6.75 percent, as well as what the net pension liability (asset) would be if it were calculated
using a discount rate that is 1-percentage-point lower(5.75 percent) or 1-percentage-point higher
(7.75 percent) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(5.75%) (6.75%) (7.75%)
City's net pension liability(asset) $11,927,195 $(3,905,802) $(17,095,606)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions
Pension Expense: For the year ended June 30, 2022,the City recognized negative pension expense
of$380,450.
G54
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
A. City Emplovees— Public Employee Retirement Plan of the TCRS (continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions (continued�
Deferred Outf/ows ofResources and Deferred Inflows ofResources For the year ended June 30,
2022, the City reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 37,152 $ 1,590,834
Net difference between projected and actual
earnings on pension plan investments - 14,456,981
Changes in assumptions 7,807,169 -
Contributions subsequent to the measurement date
of June 30, 2021 3,579,005 -
Total $11,423,326 $16,047,815
The amount shown above for "contributions subsequent to the measurement date of June 30,
2021,"will be recognized as a reduction to the net pension liability(asset) in the subsequent fiscal
period.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension expense as follows:
Year Ended ]une 30:
2023 $(2,094,132)
2024 (2,365,441)
2025 (2,339,617)
2026 (2,696,826)
2027 1,292,522
Payable to the Pension Plan
At June 30, 2022, there was no payable outstanding for contributions to the pension plan required
for the year ended June 30, 2022.
G55
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
B. City School Employees— Public Employee Retirement Plan (Legacv) of the TCRS
General Information About the Pension Plan
Plan Description: Employees of the Schools are provided a defined benefit pension plan through
the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by
the TCRS. The TCRS was created by state statute under TCA Title 8, Chapters 34-37. The TCRS
Board of Trustees is responsible for the proper operation and administration of the TCRS. The
Tennessee Treasury Department, an agency in the legislative branch of state government,
administers the plans of the TCRS. The TCRS issues a publicly available financial report that can
be obtained at https://treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-
Investment-Policies.
Benefits Provided`. TCA Title 8, Chapters 34-37 establishes the benefit terms and can be amended
only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms
permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with 5
years of service credit or after 30 years of service credit regardless of age. Benefits are determined
by a formula using the member's highest five consecutive year average compensation and the
member's service credit. Reduced benefits for early retirement are available at age 55 and vested.
Members vest with five years of service credit. Service-related disability benefits are provided
regardless of length of service. Five years of service is required for nonservice-related disability
eligibility. The service-related and nonservice-related disability benefits are determined in the same
manner as a service retirement benefit but are reduced 10 percent and include projected service
credits. A variety of death benefits are available under various eligibility criteria.
Member and beneficiary annuitants are entitled to automatic COLAs after retirement. A COLA is
granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is
based on the change in the CPI during the prior calendar year, capped at 3 percent, and applied
to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A
one percent COLA is granted if the CPI change is between one-half percent and one percent. A
member who leaves employment may withdraw their employee contributions, plus any
accumulated interest.
Employees Covered by Bene�t Terms At the measurement date of June 30, 2021, the following
employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 235
Inactive employees entitled to but not yet receiving benefits 187
Active employees 109
Total employees 531
G56
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
B. City School Emalovees — Public Emplovee Retirement Plan (Le4acy) of the TCRS
(continued)
General Information About the Pension Plan (continued�
Contributions Contributions for employees are established in the statutes governing the TCRS and
may only be changed by the Tennessee General Assembly. Employees contribute 5 percent of
salary. The Schools make employer contributions at the rate set by the Board of Trustees as
determined by an actuarial valuation. For the year ended June 30, 2022,the employer contributions
for the Schools were$305,182 based on a rate of 6.89 percent of covered payroll. By law, employer
contributions are required to be paid. The TCRS may intercept the Schools' state shared taxes if
required employer contributions are not remitted. The employer's ADC and member contributions
are expected to finance the costs of benefits earned by members during the year, the cost of
administration, as well as an amortized portion of any unfunded liability.
Net Pension Liabilit�(Asset�
Pension Liabilities(Assets): The School's net pension liability (asset) was measured as of June 30,
2021, and the total pension liability used to calculate net pension liability (asset) was determined
by an actuarial valuation as of that date.
ActuarialAssumptions The total pension liability as of the June 30, 2021 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.25 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based
on age, including inflation, averaging 4.00 percent
Investment rate of return 6.75 percent, net of pension plan investment
expenses, including inflation
Cost-of-living adjustment 2.125 percent
Mortality rates were based on actual experience including an adjustment for some anticipated
improvement.
The actuarial assumptions used in the June 30, 2021 actuarial valuation were based on the results
of an actuarial experience study performed for the period July 1, 2016 through June 30, 2020. The
demographic assumptions were adjusted to more closely reflect actual and expected future
experience.
Changes of Assumptions: In Z021, the following assumptions were changed: decreased inflation
rate from 2.50 percent to 2.25 percent; decreased the investment rate of return from 7.25 percent
to 6.75 percent; decreased the cost-of-living adjustment from 2.25 percent to 2.125 percent; and
modified mortality assumptions.
G57
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
B. City School Emalovees — Public Emplovee Retirement Plan (Le4acy) of the TCRS
(continued)
Net Pension Liability (AssetL(continued�
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees in conjunction with the June 30, 2020 actuarial experience study. A blend of
future capital market projections and historical market returns was used in a building-block method
in which a best-estimate of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) is developed for each major asset class. These best
estimates are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation of 2.25 percent.
The best-estimates of geometric real rates of return and the TCRS investment policy target asset
allocation for each major asset class are summarized in the following table:
Long-Term Expected Target
Asset Class Real Rate of Return Allocation
U.S. equity 4.88% 31%
Developed market international equity 5.37% 14%
Emerging market international equity 6.09% 4%
Private equity and strategic lending 6.57% 20%
U.S. fixed income 1.20% 20%
Real estate 4.38% 10%
Short-term securities 0.00% 1%
100%
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees as 6.75 percent based on a blending of the factors described above.
DiscountRate: The discount rate used to measure the total pension liability was 6.75 percent. The
projection of cash flows used to determine the discount rate assumed that employee contributions
will be made at the current rate and that contributions from the Schools will be made at the
actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the
funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based
on those assumptions, the pension plan's fiduciary net position was projected to be available to
make projected future benefit payments of current active and inactive members. Therefore, the
long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
G58
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
B. City School Emalovees — Public Emplovee Retirement Plan (Le4acy) of the TCRS
(continued)
Chanaes in the Net Pension Liabilit rL(Asset�
Increase (Decrease)
Net Pension
Total Pension Plan Fiduciary Liability
Liability Net Position (Asset)
(a) (b) (a) — (b)
Balance at June 30, 2020 $32,630,082 $33,571,750 $(941,668)
Changes for the year:
Service cost 399,83Z - 399,832
Interest 2,329,426 - 2,329,426
Differences between expected and
actual experience 57,671 - 57,671
Changes in assumptions 1,572,648 - 1,572,648
Contributions—employer - 445,975 (445,975)
Contributions— employees - 224,357 (224,357)
Net investment income - 8,513,471 (8,513,471)
Benefit payments, including refunds
of employee contributions (1,799,812) (1,799,812) -
Administrative expenses - (10,167) 10,167
Net changes 2,559,765 7,373,824 (4,814,059)
Balance at]une 30, 2021 $35,189,847 $40,945,574 $(5,755,727)
Sensitivity of the Net Pension Liabilit�(Asset) to Changes in the Discount Rate
The following presents the net pension liability(asset) of the Schools calculated using the discount
rate of 6.75 percent, as well as what the net pension liability (asset) would be if it were calculated
using a discount rate that is 1-percentage-point lower(5.75 percent) or 1-percentage-point higher
(7.75 percent) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(5.75%) (6.75%) (7.75%)
Schools'net pension liability(asset) $(1,695,847) $(5,755,727) $(9,191,301)
G59
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
B. City School Emalovees — Public Emplovee Retirement Plan (Le4acy) of the TCRS
(continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions
Pension Expense: For the year ended June 30, 2022, the Schools recognized negative pension
expense of$712,006.
Deferred Outf/ows ofResources and Deferred Inflows ofResources For the year ended June 30,
2022,the Schools reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Deferred
OutFlows of Inflows of
Resources Resources
Differences between expected and actual experience $38,447 $ 74,811
Net difference between projected and actual
earnings on pension plan investments - 4,536,394
Changes in assumptions 1,048,432
Contributions subsequent to the measurement date
of June 30, 2021 305,182 -
Total $1,392,061 $4,611,205
The amount shown above for ��contributions subsequent to the measurement date of June 30,
2021,"will be recognized as a reduction (increase)to net pension liability(asset) in the subsequent
fiscal period.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension expense as follows:
Year Ended 7une 30:
2023 $ (680,903)
2024 (544,019)
2025 (1,075,234)
2026 (1,224,170)
Payable to the Pension Plan
At June 30, 2022, the Schools reported a payable of $348 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2022.
G60
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
C. City School Employees—Teacher Retirement Plan of the TCRS
General Information About the Pension Plan
Plan Description: The TCRS was created by state statute under TCA Title 8, Chapters 34-37. The
TCRS Board of Trustees is responsible for the proper operation and administration of all employer
pension plans of the TCRS. The Tennessee Treasury Department, an agency in the legislative
branch of state government, administers the plans of the TCRS. The TCRS issues a publicly
available financial report that can be obtained at https://treasury.tn.gov/Retirement/Boards-and-
Governance/Reporting-and-Investment-Policies.
Teachers employed by the Schools with membership in TCRS before July 1, 2014 are provided with
pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension plan
administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June
30, 2014, but will continue providing benefits to existing members and retirees.
The Teacher Retirement Plan became effective July 1, 2014 for teachers employed by Local
Education Agencies (LEAs) after June 30, 2014. The Teacher Retirement Plan is a separate cost-
sharing, multiple-employer defined benefit plan.
Benefits Provided`. TCA Title 8, Chapters 34-37 establishes the benefit terms and can be amended
only by the Tennessee General Assembly. Members of the Teacher Retirement Plan are eligible to
retire with an unreduced benefit at age 65 with 5 years of service credit or pursuant to the rule of
90 in which the member's age and service credit total 90. Benefits are determined by a formula
using the member's highest five consecutive years average compensation and the member's years
of service credit. A reduced early retirement benefit is available at age 60 and vested or pursuant
to the rule of 80. Members are vested with five years of service credit. Service-related disability
benefits are provided regardless of length of service. Five years of service is required for
nonservice-related disability eligibility.The service-related and nonservice-related disability benefits
are determined in the same manner as a service retirement benefit but are reduced 10 percent
and include projected service credits. A variety of death benefits are available under various
eligibility criteria.
Member and beneficiary annuitants are entitled to automatic COLAs after retirement. A COLA is
granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is
based on the change in the CPI during the prior calendar year, capped at 3 percent, and applied
to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A
one percent COLA is granted if the CPI change is between one-half percent and one percent. A
member who leaves employment may withdraw their employee contributions, plus any
accumulated interest. Under the Teacher Retirement Plan, benefit terms and conditions, including
COLAs, can be adjusted on a prospective basis. Moreover, there are defined cost controls and
unfunded liability controls that provide for the adjustment of benefit terms and conditions on an
automatic basis.
C-61
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
C. City School Employees—Teacher Retirement Plan of the TCRS (continued)
General Information About the Pension Plan (continued�
Contributions Contributions for teachers are established in the statutes governing the TCRS and
may only be changed by the Tennessee General Assembly or by automatic cost controls set out in
law. Teachers contribute 5 percent of salary. The LEAs make employer contributions at the rate
set by the Board of Trustees as determined by an actuarial valuation. Per the statutory provisions
governing the TCRS, the employer contribution rate cannot be less than 4 percent, except in years
when the maximum funded level, as established by the TCRS Board of Trustees, is reached. By
law, employer contributions for the Teacher Retirement Plan are required to be paid. The TCRS
may intercept the state shared taxes of the sponsoring governmental entity of the LEA if the
required employer contributions are not remitted. Employer contributions by the Schools for the
year ended June 30, 2022, to the Teacher Retirement Plan were $111,413 which is 1.13 percent
of covered payroll. In addition,employer contributions of$96,080,which is 2.87 percent of covered
payroll were made to the Pension Stabilization Reserve Trust Fund to fund future pension costs.
The employer rate, when combined with member contributions, is expected to finance the costs of
benefits earned by members during the year, the cost of administration, as well as an amortized
portion of any unfunded liability.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
Pension Liabilities (Assets): At June 30, 2022, the Schools reported an asset of $324,548 for its
proportionate share of the net pension asset. The net pension asset was measured as of June 30,
2021, and the total pension liability used to calculate the net pension asset was determined by an
actuarial valuation as of that date. The Schools' proportion of the net pension asset was based on
the Schools' share of contributions to the pension plan relative to the contributions of all
participating LEAs. At the measurement date of June 30, 2021, the Schools' proportion was
0.299617 percent. The proportion measured as of June 30, 2020, was 0.290066 percent.
Pension Expense: For the year ended June 30, 2022, the Schools recognized pension expense of
$37,347.
Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended June 30,
2022,the Schools reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Deferred
OutFlows of Inflows of
Resources Resources
Differences between expected and actual experience $ 5,646 $ 59,386
Net difference between projected and actual
earnings on pension plan investments - 186,819
Changes in assumptions 117,062 -
Changes in proportion of net pension liability (asset) 6,844 29,583
Contributions subsequent to the measurement date
of June 30, 2021 111,413 -
Total $240,965 $275,788
G62
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
C. City School Employees—Teacher Retirement Plan of the TCRS (continued)
Pension Liabilities (Assets�, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (continued�
The amount shown above for "contributions subsequent to the measurement date of June 30,
2021," will be recognized as a reduction (increase) to the net pension liability (asset) in the
subsequent fiscal period.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension expense as follows:
Year Ended ]une 30:
2023 $(43,100)
2024 (42,077)
2025 (41,786)
2026 (46,487)
2027 3,342
Thereafter 23,872
Actuarial Assumptions The total pension liability in the June 30, 2021 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.25 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based
on age, including inflation, averaging 4.00 percent
Investment rate of return 6.75 percent, net of pension plan investment
expenses, including inflation
Cost-of-living adjustment 2.125 percent
Mortality rates were based on actual experience including an adjustment for some anticipated
improvement.
The actuarial assumptions used in the June 30, 2021 actuarial valuation were based on the results
of an actuarial experience study performed for the period July 1, 2016 through June 30, 2020. As
a result of the 2020 actuarial experience study, investment and demographic assumptions were
adjusted to more closely reflect actual and expected future experience.
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees in conjunction with the June 30, 2020 actuarial experience study. A blend of
future capital market projections and historical market returns was used in a building-block method
in which a best-estimate of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) is developed for each major asset class. These best
estimates are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation of 2.25 percent.
G63
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
C. City School Employees—Teacher Retirement Plan of the TCRS (continued)
Pension Liabilities (Assets�, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (continued�
The best-estimates of geometric real rates of return and the TCRS investment policy target asset
allocation for each major asset class are summarized in the following table:
Long-Term Expected Target
Asset Class Real Rate of Return Allocation
U.S. equity 4.88% 31%
Developed market international equity 5.37% 14%
Emerging market international equity 6.09% 4%
Private equity and strategic lending 6.57% 20%
U.S. fixed income 1.20% 20%
Real estate 4.38% 10%
Short-term securities 0.00% 1%
100%
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees as 6.75 percent based on a blending of the factors described above.
DiscountRate: The discount rate used to measure the total pension liability was 6.75 percent. The
projection of cash flows used to determine the discount rate assumed that employee contributions
will be made at the current rate and that contributions from all LEAs will be made at the actuarially
determined contribution rate pursuant to an actuarial valuation in accordance with the funding
policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make
projected future benefit payments of current active and inactive members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of Net Pension Liability(Asset) to Changes in the Discount
Rate: The following presents the Schools' proportionate share of the net pension liability (asset)
calculated using the discount rate of 6.75 percent, as well as what the Schools'proportionate share
of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-
percentage-point lower(5.75 percent)or 1-percentage-point higher(7.75 percent)than the current
rate:
Current
1% Decrease Discount Rate 1% Increase
(5.75%) (6.75%) (7.75%)
Schools' proportionate share of the
net pension liability (asset) $111,571 $(324,548) $(646,202)
Pension Plan Fiduciary Net Position: Detailed information about the pension plan's fiduciary net
position is available in a separately issued TCRS financial report.
G64
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
C. City School Employees—Teacher Retirement Plan of the TCRS (continued)
Payable to the Pension Plan
At June 30, 2022, the Schools reported a payable of $15,774 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2022.
D. Citv School Employees—Teacher Legacy Pension Plan of the TCRS
General Information About the Pension Plan
Plan Description: The TCRS was created by state statute under TCA Title 8, Chapters 34-37. The
TCRS Board of Trustees is responsible for the proper operation and administration of all employer
pension plans of the TCRS. The Tennessee Treasury Department, an agency in the legislative
branch of state government, administers the plans of the TCRS. The TCRS issues a publicly
available financial report that can be obtained at https://treasury.tn.gov/Retirement/Boards-and-
Governance/Reporting-and-Investment-Policies.
Teachers employed by the Schools with membership in the TCRS before July 1, 2014, are provided
with pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension
plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on
June 30, 2014, but will continue providing benefits to existing members and retirees.
The Teacher Retirement Plan became effective July 1, 2014 for teachers employed by LEAs after
June 30, 2014. The Teacher Retirement Plan is a separate cost-sharing, multiple-employer defined
benefit plan.
Benefits Provided`. TCA Title 8, Chapters 34-37 establishes the benefit terms and can be amended
only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible
to retire with an unreduced benefit at age 60 with 5 years of service credit, or after 30 years of
service credit regardless of age. Benefits are determined by a formula using the member's highest
five consecutive years average compensation and the member's service credit. A reduced early
retirement benefit is available at age 55 if vested. Members are vested with five years of service
credit. Service-related disability benefits are provided regardless of length of service. Five years of
service is required for nonservice-related disability eligibility. The service-related and nonservice-
related disability benefits are determined in the same manner as a service retirement benefit but
are reduced 10 percent and include projected service credits. A variety of death benefits are
available under various eligibility criteria.
Member and beneficiary annuitants are entitled to automatic COLAs after retirement. A COLA is
granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is
based on the change in the CPI during the prior calendar year, capped at 3 percent, and applied
to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A
one percent COLA is granted if the CPI change is between one-half percent and one percent. A
member who leaves employment may withdraw their employee contributions, plus any
accumulated interest.
G65
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
D. City School Employees—Teacher Legacy Pension Plan of the TCRS (continued)
General Information About the Pension Plan (continued�
Contributions Contributions for teachers are established in the statutes governing the TCRS and
may only be changed by the Tennessee General Assembly.Teachers contribute 5 percent of salary.
The LEAs make employer contributions at the rate set by the Board of Trustees as determined by
an actuarial valuation. By law, employer contributions for the Teacher Legacy Pension Plan are
required to be paid.The TCRS may intercept the state shared taxes of the sponsoring governmental
entity of the LEA if the required employer contributions are not remitted. Employer contributions
by the Schools for the year ended June 30, 2022, to the Teacher Legacy Pension Plan were
$2,688,853 which is 8.69 percent of covered payroll. The employer rate, when combined with
member contributions, is expected to finance the costs of benefits earned by members during the
year, the cost of administration, as well as an amortized portion of any unfunded liability.
Pension Liabilities (Assets�, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
Pension Liabi/ities(Assets): At June 30, 2022, the Schools reported an asset of$34,458,664 for its
proportionate share of the net pension asset. The net pension asset was measured as of June 30,
2021, and the total pension liability used to calculate the net pension asset was determined by an
actuarial valuation as of that date. The Schools' proportion of the net pension asset was based on
the Schools' share of contributions to the pension plan relative to the contributions of all
participating LEAs. At the measurement date of June 30, 2021, the Schools' proportion was
0.798904 percent. The proportion measured as of June 30, 2020 was 0.769546 percent.
Pension Expense: For the year ended June 30, 2022, the Schools recognized negative pension
expense of$5,405,957.
Deferred Outf/ows ofResources and Deferred Inflows ofResources For the year ended June 30,
2022,the Schools reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Deferred
OutFlows of Inflows of
Resources Resources
Differences between expected and actual experience $ 115,800 $ 2,873,964
Changes in assumptions 9,206,779 -
Net difference between projected and actual
earnings on pension plan investments - 27,480,015
Changes in proportion of net pension liability (asset) 13,545 180,545
Contributions subsequent to the measurement date
of June 30, 2021 2,688,853 -
Total $12,024,977 $30,534,524
The amount shown above for ��contributions subsequent to the measurement date of June 30,
2021," will be recognized as a reduction (increase) to the net pension liability (asset) in the
subsequent fiscal period.
G66
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
D. City School Employees—Teacher Legacy Pension Plan of the TCRS (continued)
Pension Liabilities (Assets�, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (continued�
Other amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension expense as follows:
Year Ended )une 30:
2023 $(5,048,508)
2024 (4,802,145)
2025 (3,931,684)
2026 (7,416,063)
Actuarial Assumptions The total pension liability in the June 30, 2021 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.25 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based
on age, including inflation, averaging 4.00 percent
Investment rate of return 6.75 percent, net of pension plan investment
expenses, including inflation
Cost-of-living adjustment 2.125 percent
Mortality rates were based on actual experience including an adjustment for some anticipated
improvement.
The actuarial assumptions used in the June 30, 2021 actuarial valuation were based on the results
of an actuarial experience study performed for the period July 1, 2016 through June 30, 2020. As
a result of the 2020 actuarial experience study, investment and demographic assumptions were
adjusted to more closely reflect actual and expected future experience.
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees in conjunction with the June 30, 2020 actuarial experience study. A blend of
future capital market projections and historical market returns was used in a building-block method
in which a best-estimate of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) is developed for each major asset class. These best
estimates are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation of 2.25 percent.
G67
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
D. City School Employees—Teacher Legacy Pension Plan of the TCRS (continued)
Pension Liabilities (Assets�, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (continued�
The best-estimates of geometric real rates of return and the TCRS investment policy target asset
allocation for each major asset class are summarized in the following table:
Long-Term Expected Target
Asset Class Real Rate of Return Allocation
U.S. equity 4.88% 31%
Developed market international equity 5.37% 14%
Emerging market international equity 6.09% 4%
Private equity and strategic lending 6.57% 20%
U.S. fixed income 1.20% 20%
Real estate 4.38% 10%
Short-term securities 0.00% 1%
100%
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees as 6.75 percent based on a blending of the factors described above.
DiscountRate: The discount rate used to measure the total pension liability was 6.75 percent. The
projection of cash flows used to determine the discount rate assumed that employee contributions
will be made at the current rate and that contributions from all LEAs will be made at the actuarially
determined contribution rate pursuant to an actuarial valuation in accordance with the funding
policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make
projected future benefit payments of current active and inactive members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of Net Pension Liability(Asset) to Changes in the Discount
Rate: The following presents the Schools' proportionate share of the net pension liability (asset)
calculated using the discount rate of 6.75 percent, as well as what the Schools'proportionate share
of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-
percentage-point lower(5.75 percent)or 1-percentage-point higher(7.75 percent)than the current
rate:
Current
1% Decrease Discount Rate 1% Increase
(5.75%) (6.75%) (7.75%)
Schools'proportionate share of
the net pension liability (asset) $(6,132,483) $(34,458,664) $(58,031,698)
Pension P/an Fiduciary Net Position: Detailed information about the pension plan's fiduciary net
position is available in a separately issued TCRS financial report.
G68
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
D. City School Employees—Teacher Legacy Pension Plan of the TCRS (continued)
Payable to the Pension Plan
At June 30, 2022, the Schools reported a payable of $154,885 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2022.
E. Citv School Emaloyees—Oak Ridae Board of Education Hvbrid with Cost Controls
General Information About the Pension Plans
Plan Description: Employees of the Oak Ridge Board of Education Hybrid with Cost Controls are
provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent
multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute
under TCA Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper
operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the
legislative branch of state government, administers the plans of the TCRS. The TCRS issues a
publicly available financial report that can be obtained at https://treasury.tn.gov/Retirement/
Boards-and-Governance/Reporting-and-Investment-Policies.
Benefits Provided`. TCA Title 8, Chapters 34-37 establishes the benefit terms and can be amended
only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms
permitted by statute. Members are eligible to retire with an unreduced benefit at age 65 with 5
years of service credit or pursuant to the rule of 90 in which the member's age and service credit
total 90. Benefits are determined by a formula using the member's highest five consecutive year
average compensation and the member's years of service credit. Reduced benefits for early
retirement are available at age 60 and vested or pursuant to the rule of 80 in which the member's
age and service credit total 80. Members vest with five years of service credit. Service-related
disability benefits are provided regardless of length of service. Five years of service is required for
nonservice-related disability eligibility.The service-related and nonservice-related disability benefits
are determined in the same manner as a service retirement benefit but are reduced 10 percent
and include projected service credits. A variety of death benefits are available under various
eligibility criteria.
Member and beneficiary annuitants are entitled to automatic COLAs after retirement. A COLA is
granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is
based on the change in the CPI during the prior calendar year, capped at 3 percent, and applied
to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A
one percent COLA is granted if the CPI change is between one-half percent and one percent. A
member who leaves employment may withdraw their employee contributions, plus any
accumulated interest. Moreover, there are defined cost controls and unfunded liability controls that
provide for the adjustment of benefit terms and conditions on an automatic basis.
Employees Covered by Bene�t Terms At the measurement date of June 30, 2021, the following
employees were covered by benefit terms:
Inactive employees entitled to but not yet receiving benefits 51
Active employees 103
Total 154
G69
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
E. City School Emnlovees — Oak Ridge Board of Education Hybrid with Cost Controls
(continued)
General Information About the Pension Plans (continued�
Contributions Contributions for employees are established in the statutes governing the TCRS and
may only be changed by the Tennessee General Assembly or by automatic cost controls set out in
law. Employees contribute 5 percent of salary. Oak Ridge Board of Education Hybrid with Cost
Controls makes employer contributions at the rate set by the Board of Trustees as determined by
an actuarial valuation. Per the statutory provisions governing the TCRS, the employer contribution
rate cannot be less than 4 percent, except in years when the maximum funded level,as established
by the TCRS Board of Trustees, is reached. By law, employer contributions are required to be paid.
The TCRS may intercept Oak Ridge Board of Education Hybrid with Cost Controls' state shared
taxes if required employer contributions are not remitted. Employer contributions by Oak Ridge
Board of Education Hybrid with Cost Controls for the year ended June 30, 2022 to the Public
Employee Retirement Plan were $75,989, based on a rate of 1.99 percent of covered payroll. In
addition, employer contributions of $68,521, which is 2.03 percent of covered payroll were made
to the Pension Stabilization Reserve Trust Fund to fund future pension costs. The employer rate,
when combined with member contributions, is expected to finance the costs of benefits earned by
members during the year, the cost of administration, as well as an amortized portion of any
unfunded liability.
Net Pension Liabilit�(Asset�
Pension Liabilities(Assets): Oak Ridge Board of Education Hybrid with Cost Controls' net pension
liability (asset) was measured as of June 30, 2021, and the total pension liability used to calculate
the net pension liability (asset) was determined by an actuarial valuation as of that date.
Actuaria/Assumptions The total pension liability as of the June 30, 2021 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.25 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based
on age, including inflation, averaging 4.00 percent
Investment rate of return 6.75 percent, net of pension plan investment
expenses, including inflation
Cost-of-living adjustment 2.125 percent
Mortality rates were based on actual experience including an adjustment for some anticipated
improvement.
The actuarial assumptions used in the June 30, 2021 actuarial valuation were based on the results
of an actuarial experience study performed for the period July 1, 2016 through June 30, 2020. The
demographic assumptions were adjusted to more closely reflect actual and expected future
experience.
G70
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
E. City School Emulovees — Oak Ridge Board of Education Hybrid with Cost Controls
(continued)
Net Pension Liability�AssetL(continued�
Changes of Assumptions: In 2021, the following assumptions were changed: decreased inflation
rate from 2.50 percent to 2.25 percent; decreased the investment rate of return from 7.25 percent
to 6.75 percent; decreased the COLA from 2.25 percent to 2.125 percent; and modified mortality
assumptions.
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees in conjunction with the June 30, 2020 actuarial experience study. A blend of
future capital market projections and historical market returns was used in a building-block method
in which a best-estimate of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) is developed for each major asset class. These best
estimates are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation of 2.25 percent. The best-estimates of geometric real rates of return and the
TCRS investment policy target asset allocation for each major asset class are summarized in the
following table:
Long-Term
Expected Real Target
Asset Class Rate of Return Allocation
U.S. equity 4.88% 31%
Developed market international equity 5.37% 14%
Emerging market international equity 6.09% 4%
Private equity and strategic lending 6.57% 20%
U.S. fixed income 1.20% 20%
Real estate 4.38% 10%
Short-term securities 0.00% 1%
100%
The long-term expected rate of return on pension plan investments was established by the TCRS
Board of Trustees as 6.75 percent based on a blending of the factors described above.
DiscountRate: The discount rate used to measure the total pension liability was 6.75 percent. The
projection of cash flows used to determine the discount rate assumed that employee contributions
will be made at the current rate and that contributions from Oak Ridge Board of Education Hybrid
with Cost Controls will be made at the actuarially determined contribution rate pursuant to an
actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as
required to be paid by state statute. Based on those assumptions, the pension plan's fiduciary net
position was projected to be available to make projected future benefit payments of current active
and inactive members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
C-71
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
E. City School Emulovees — Oak Ridge Board of Education Hybrid with Cost Controls
(continued)
Chanqes in the Net Pension Liability (Asset�
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
(a) (b) (a) — (b)
Balance at June 30, 2020 $601,235 $670,220 $(68,985)
Changes for the year:
Service cost 193,745 - 193,745
Interest 57,410 - 57,410
Differences between expected and
actual experience 15,261 - 15,261
Changes in assumptions 68,802 - 68,802
Contributions—employer - 72,312 (72,312)
Contributions— employees - 184,031 (184,031)
Net investment income - 204,068 (204,068)
Benefit payments, including refunds
of employee contributions (6,249) (6,249) -
Administrative expenses - (8,419) 8,419
Net changes 328,969 445,743 (116,774)
Balance at]une 30, 2021 $930,204 $1,115,963 $(185,759)
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate: The following
presents the net pension liability(asset)of Oak Ridge Board of Education Hybrid with Cost Controls
calculated using the discount rate of 6.75 percent, as well as what the net pension liability (asset)
would be if it were calculated using a discount rate that is 1-percentage-point lower(5.75 percent)
or 1-percentage-point higher (7.75 percent) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(5.75%) (6.75%) (7.75%)
Oak Ridge Board of Education
Hybrid with Cost Controls' net
pension liability (asset) $28,908 $(185,759) $(352,567)
Pension Expense: For the year ended June 30, 2022, Oak Ridge Board of Education Hybrid with
Cost Controls recognized pension expense of$12,163.
G72
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
E. City School Emulovees — Oak Ridge Board of Education Hybrid with Cost Controls
(continued)
Deferred Outf/ows of Resources and Deferred Inflows of Resources For the year ended June 30,
2022, Oak Ridge Board of Education Hybrid with Cost Controls reported deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $101,647 $228
Net difference between projected and actual
earnings on pension plan investments - 110,637
Changes in assumptions 62,790 -
Contributions subsequent to the measurement date
of June 30, 2021 75,989 -
Total $240,426 $110,865
The amount shown above for ��contributions subsequent to the measurement date of June 30,
2021,"will be recognized as a reduction (increase)to net pension liability(asset) in the subsequent
fiscal period.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension expense as follows:
Year Ended June 30:
2023 $(5,496)
2024 (5,105)
2025 (4,860)
2026 (7,323)
2027 22,020
Thereafter 54,336
Payable to the Pension Plan
At June 30, 2022, Oak Ridge Board of Education Hybrid with Cost Controls reported a payable of
$293 for the outstanding amount of contributions to the pension plan required for the year ended
June 30, 2022.
G73
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
10. PENSION PLANS �continued�
F. Defined Contribution Plan
The School contributes to the Higher Education and Teacher Hybrid Plan, a defined contribution
pension plan under section 401(k) of the Internal Revenue Code, for teachers with membership in
the TCRS after June 30, 2014. The Higher Education and Teacher Hybrid Plan is a component of
the defined benefit plan reported in Section C of Note 10. Benefit terms, including contribution
requirements, for the Higher Education and Teacher Hybrid Plan are established by TCA Title 8,
Chapters 34-37 and may be amended by the Tennessee General Assembly. For each employee in
the pension plan the School is required to contribute 5% of annual salary to an individual employee
account. Employee contributions vary based on individual selection. For the year ended June 30,
2022, the Schools recognized $468,478. Employees are immediately vested on all contributions
and earnings on those contributions.
The Schools reported no payable for the outstanding amount of contributions to the pension plan
required for the year ended June 30, 2022.
11.OTHER POSTEMPLOYMENT BENEFITS
For the year ended June 30, 2022, the City recognized a total OPEB liability, deferred outflows of
resources related to OPEB,deferred inflows of resources related to OPEB,and OPEB expense as follows:
Deferred
Deferred Inflows of
Outflows of Resources
Total OPEB Resources Related to OPEB
Pension Plan Liability Related to OPEB OPEB Expense
Local Government OPEB Plan $ 3,972,559 $ 677,422 $2,083,567 $187,601
Teacher Group OPEB Plan 6,537,967 2,133,689 1,963,988 734,611
Tennessee Plan - - - 82,240
Total $10,510,526 $2,811,111 $4,047,555 $1,004,452
A. Local Government OPEB Plan
General Information About the OPEB Plan
Plan Description: Employees of the City are provided with pre-65 retiree health insurance benefits
through the Local Government OPEB Plan (LGOP) administered by the Tennessee Department of
Finance and Administration. This plan is considered to be a multiple-employer defined benefit plan
that is used to provide OPEB. However, for accounting purposes, this plan will be treated as a
single-employer plan. All eligible pre-65 retired employees and disability participants of local
governments, who choose coverage, participate in the LGOP.
G74
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued)
A. Local Government OPEB Plan (continued)
General Information About the OPEB Plan (continued�
Benefits Pro�idea`. The City offers the LGOP to provide health insurance coverage to eligible pre-
65 retirees and disabled participants of local governments. Insurance coverage is the only
postemployment benefit provided to retirees. An insurance committee created in accordance with
TCA 8-27-701 establishes and amends the benefit terms of the LGOP. All members have the option
of choosing between the premier preferred provider organization (PPO), standard PPO, limited PPO
or the wellness health savings consumer-driven health plan (CDHP)for healthcare benefits. Retired
plan members, of the LGOP, receive the same plan benefits as active employees, at a blended
premium rate that considers the cost of all participants.This creates an implicit subsidy for retirees.
Participating employers determine their own policy related to direct subsidies provided for the
retiree premiums.The City contributes 50 percent of the medical insurance premiums for its retirees
and their families until the retiree becomes eligible for Medicare, or has been retired for seven
years,whichever comes first.The LGOP is funded on a pay-as-you-go basis and there are no assets
accumulating in a trust.
Emp/oyees Covered by Benefit Terms At July 1, 2021, the following employees of the City were
covered by the benefit terms of the LGOP:
Inactive employees currently receiving benefit payments 25
Active employees 348
Total 373
An insurance committee, created in accordance with TCA 8-27-701, establishes the required
payments to the LGOP by member employers and employees through the blended premiums
established for active and retired employees. Claims liabilities of the plan are periodically computed
using actuarial and statistical techniques to establish premium rates. For the fiscal year ended June
30, 2022, the City paid $170,374 to the LGOP for OPEB benefits as they came due.
Total OPEB Liabilitv
Actuarial Assumptions The total OPEB liability in the June 30, 2021 actuarial valuation was
determined using the following actuarial assumptions and other inputs, applied to all periods
included in the measurement, unless otherwise specified:
Inflation 2.25 percent
Salary increases Graded salary ranges from 3.44 to 8.72 percent based on age,
including inflation, averaging 4 percent
Healthcare cost trend rates 7.36 percent for pre-65 in 2021, decreasing annually over a 7-
year period to an ultimate rate of 4.50 percent. 7.32 percent
for post-65 in 2021, decreasing annually over an 8-year period
to an ultimate rate of 4.50 percent
Retiree's share of benefit- Members are required to make monthly contributions in order
related costs to maintain their coverage. For the purpose of this valuation a
weighted average has been used with weights derived from
the current distribution of inembers among plans offered
G75
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued)
A. Local Government OPEB Plan (continued)
Total OPEB Liability_(continued�
Unless noted otherwise, the actuarial demographic assumptions used in the June 30, 2021,
valuations were the same as those employed in the July 1, 2020 Pension Actuarial Valuation of the
TCRS. These assumptions were developed by TCRS based on the results of an actuarial experience
study for the period July 1, 2016 through June 30, 2020. The demographic assumptions were
adjusted to more closely reflect actual and expected future experience. Mortaliry tables are used
to measure the probabilities of participants dying before and after retirement. The mortality rates
employed in this valuation are taken from the PUB-2010 Headcount-Weighted Employee mortality
table for General Employees for non-disabled pre-retirement mortality, with mortality improvement
projected generationally with MP-2020 from 2010. Post-retirement tables are Headcount-Weighted
Below Median Healthy Annuitant and adjusted with a 6 percent load for males and a 14 percent
load for females, projected generationally from 2010 with MP-2020. Mortality rates for impaired
lives are the same as those used by TCRS and are taken from a gender distinct table published in
the IRS Ruling 96-7 for disabled lives with a 10 percent load, projected generationally from 2018
with MP-2020.
Discount Rate: The discount rate used to measure the total OPEB liability was 2.16 percent. This
rate reflects the interest rate derived from yields on 20-year, tax-exempt general obligation
municipal bonds, prevailing on the measurement date, with an average rating of AA/Aa as shown
on the Bond Buyer 20-Year Municipal GO AA index.
Changes in the Total OPEB Liabilitv
Total OPEB liability at June 30, 2021 $4,356,571
Changes for the year:
Service cost 349,582
Interest 102,270
Differences between expected and actual experience 199,455
Change in assumptions (877,338)
Benefit payments (157,981)
Net changes (384,012)
Total OPEB liability at June 30, 2022 $3,972,559
Changes in Assumptions The discount rate was changed from 2.21 percent as of the beginning of
the measurement period to 2.16 percent as of June 30, 2021. This change in assumption increased
the total OPEB liability. Other changes in assumptions include adjustments to initial per capita costs
and health trend rates.
Sensiti�ity of Total OPEB Liability to Changes in the Discount Rate: The fol lowing presents the total
OPEB liability related to the LGOP, as well as what the total OPEB liability would be if it were
calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than
the current discount rate:
1% Decrease Discount Rate 1% Increase
(1.16%) (2.16%) (3.16%)
$4,262,222 $3,972,559 $3,698,166
G76
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued)
A. Local Government OPEB Plan (continued)
Changes in the Total OPEB Liability_(continuedl
Sensitivity of Total OPEB Liability to Changes in the Healthcare Cost Trend Rate: The following
presents the total OPEB liability related to the LGOP, as well as what the total OPEB liability would
be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-
percentage-point higher than the current healthcare cost trend rate:
Healthcare Cost
1% Decrease Trend Rates 1% Increase
(6.36%/6.3Z% (7.36%/7.32% (8.36%/8.32%
decreasing to decreasing to decreasing to
3.50%) 4.50%) 5.50%)
$3,550,024 $3,972,559 $4,471,074
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
OPEB Expense: For the year ended June 30, 2022, the City recognized OPEB expense of$187,601.
Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended June 30,
2022, the City reported deferred outflows of resources and deferred inflows of resources related
to OPEB in the LGOP from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between actual and expected experience $174,239 $1,116,359
Changes of assumptions 332,809 967,208
Employer payments subsequent to the measurement
date 170,374 -
Total $677,422 $2,083,567
The amounts shown above for"employer payments subsequent to the measurement date"will be
recognized as a reduction to total OPEB liability in the subsequent fiscal period.
Other amounts reported as deferred outflows of resources and deferred inflows of resources will
be recognized in OPEB expense as follows:
Year Ended June 30:
2023 $ (264,251)
2024 (264,251)
2025 (264,251)
2026 (264,251)
2027 (256,370)
Thereafter (263,145)
G77
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued�
B. Teacher Group OPEB Plan
General Information About the OPEB Plan
Plan Description: Employees of the Schools who were hired prior to July 1, 2015 are provided with
pre-65 retiree health insurance benefits through the closed Teacher Group OPEB Plan (TGOP)
administered by the Tennessee Department of Finance and Administration. This plan is considered
to be a multiple-employer defined benefit plan that is used to provide OPEB. However, for
accounting purposes, this plan will be treated as a single-employer plan. All eligible pre-65 retired
teachers,support staff and disability participants of local education agencies,who choose coverage,
participate in the TGOP. This plan is closed to the employees of all participating employers that
were hired on or after July 1, 2015.
Benefits Provided`. The Schools offer the TGOP to provide health insurance coverage to eligible pre-
65 retired teachers, support staff and disabled participants of local education agencies. Insurance
coverage is the only postemployment benefit provided to retirees. An insurance committee created
in accordance with TCA 8-27-301 establishes and amends the benefit terms of the TGOP. All
members have the option of choosing between the PPO, standard PPO, limited PPO or the CDHP
for healthcare benefits. Retired plan members of the TGOP receive the same plan benefits as active
employees at a blended premium rate that considers the cost of all participants. This creates an
implicit subsidy for retirees. Participating employers determine their own policy related to direct
subsidies provided for the retiree premiums. The Schools pay 85 percent of the retirees' individual
health insurance premium for five years or until the retirees reach age 65. The state, as a
governmental nonemployer contributing entity, provides a direct subsidy for eligible retirees'
premiums, based on years of service. Therefore, retirees with 30 or more years of service will
receive 45 percent; 20 but less than 30 years, 35 percent; and less than 20 years, 20 percent of
the scheduled premium. No subsidy is provided for enrollees of the CDHP. The TGOP is funded on
a pay-as-you-go basis and there are no assets accumulating in a trust.
Employees Covered byBene�t Terms At July 1, 2021,the following employees of the Schools were
covered by the benefit terms of the TGOP:
Inactive employees currently receiving benefit payments 23
Inactive employees entitled to but not yet receiving benefit payments 1
Active employees 455
Total 479
An insurance committee, created in accordance with TCA 8-27-301, establishes the required
payments to the TGOP by member employers and employees through the blended premiums
established for active and retired employees. Claims liabilities of the plan are periodically computed
using actuarial and statistical techniques to establish premium rates. Administrative costs are
allocated to plan participants. Employers contribute towards employee costs based on their own
developed policies. During the current reporting period, the Schools paid $193,629 to the TGOP
for OPEB as they came due.
G78
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued)
B. Teacher Group OPEB Plan (continued)
Total OPEB Liabilitv
ActuarialAssumptions The collective total OPEB liability in the June 30, 2021 actuarial valuation
was determined using the following actuarial assumptions and other inputs, applied to all periods
included in the measurement, unless otherwise specified:
Inflation 2.25 percent
Salary increases Graded salary ranges from 3.44 to 8.72 percent
based on age, including inflation, averaging 4
percent.
Healthcare cost trend rates 7.36 percent for pre-65 in 2021, decreasing
annually over a 7-year period to an ultimate rate of
4.50 percent. 7.32 percent for post-65 in 2021,
decreasing annually over an 8-year period to an
ultimate rate of 4.50 percent.
Retiree's share of benefit-related costs Members are required to make monthly
contributions in order to maintain their coverage.
For the purpose of this valuation, a weighted
average has been used with weights derived from
the current distribution of inembers among plans
offered.
Unless noted otherwise, the actuarial demographic assumptions used in the June 30, 2021,
valuations were the same as those employed in the July 1, 2020 Pension Actuarial Valuation of the
TCRS. These assumptions were developed by TCRS based on the results of an actuarial experience
study for the period July 1, 2016 through June 30, 2020. The demographic assumptions were
adjusted to more closely reflect actual and expected future experience. Mortality tables are used
to measure the probabilities of participants dying before and after retirement. The pre-retirement
mortality rates employed in this valuation are taken from the PUB-2010 Headcount-weighted
Employee mortality table for Teacher Employees projected generationally with MP-2020 from 2010.
Post-retirement tables are Headcount-weighted Teacher Below Median Healthy Annuitant and
adjusted with a 19 percent load for males and an 18 percent load for females, projected
generationally from 2010 with MP-2020. Mortality rates for impaired lives are the same as those
used by TCRS and are taken from a gender distinct table published in the IRS Ruling 96-7 for
disabled lives with a 10 percent load, projected generationally from 2018 with MP-2020.
Discount Rate: The discount rate used to measure the total OPEB liability was 2.16 percent. This
rate reflects the interest rate derived from yields on 20-year, tax-exempt general obligation
municipal bonds, prevailing on the measurement date, with an average rating of AA/Aa as shown
on the Bond Buyer 20-Year Municipal GO AA Index.
G79
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued)
B. Teacher Group OPEB Plan (continued)
Changes in Collective Total OPEB Liabilitv
Total OPEB liability at June 30, 2021 $8,699,697
Changes for the year:
Service cost 500,110
Interest 199,980
Differences between expected and actual experience 340,038
Changes in assumptions 159,383
Benefit payments (303,500)
Net changes 896,011
Total OPEB liability at June 30, 2022 $9,595,708
Nonemployer contributing entities proportionate share of
the collective total OPEB liability $3,057,741
Employer's proportionate share of the collective total
OPEB liability $6,537,967
Employer's proportion of the collective total OPEB liabiliry 68.13%
The Schools have a special funding situation related to benefits paid by the State of Tennessee for
its eligible retired employees participating in the TGOP. The Schools' proportionate share of the
collective total OPEB liability was based on a projection of the employer's long-term share of benefit
payments to the OPEB plan relative to the projected share of benefit payments of all participating
employers and nonemployer contributing entities, actuarially determined. The proportion changed
(3.71) percent from the prior measurement date. The Schools recognized $277,674 in revenue for
subsidies provided by nonemployer contributing entities for benefits paid by the TGOP for School
reti rees.
Changes in Assumptions The discount rate was changed from 2.21 percent as of the beginning of
the measurement period to 2.16 percent as of June 30, 2021. This change in assumption increased
the total OPEB liability.
Sensitivity of Proportionate Share of the Col%ctive Total OPEB Liability to Changes in the Discount
Rate: The following presents the proportionate share of the collective total OPEB liability related to
the TGOP, as well as what the proportionate share of the collective total OPEB liability would be if
it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point
higher than the current discount rate:
1% Decrease Discount Rate 1% Increase
(1.16%) (2.16%) (3.16%)
$6,988,276 $6,537,967 $6,103,790
G80
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued)
B. Teacher Group OPEB Plan (continued)
Changes in Collective Total OPEB Liabilit�(continued�
Sensiti�ity ofProportionate Share of the Col%tive Total OPEB Liabi/ity to Changes in the Hea/thcare
Cost TrendRate: The following presents the proportionate share of the collective total OPEB liability
related to the TGOP, as well as what the proportionate share of the collective total OPEB liability
would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower
or 1-percentage-point higher than the current healthcare cost trend rate:
1% Decrease Healthcare Cost Trend Rates 1% Increase
(6.36%/6.32% (7.36%/7.32% decreasing to (8.36%/8.32%
decreasing to 3.50%) 4.50%) decreasing to 5.50%)
$5,841,446 $6,537,967 $7,348,384
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
OPEB Expense: For the year ended June 30, 2022, the Schools recognized OPEB expense of
$734,611.
Deferred Outf/ows ofResources and Deferred Inf/ows ofResources At June 30, 2022, the Schools
reported deferred outflows of resources and deferred inflows of resources related to OPEB in the
TGOP from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between actual and expected experience $1,107,250 $1,109,768
Changes of assumptions 709,312 418,970
Changes in proportion and differences between amounts
paid as benefits came due and proportionate share of
certain amounts paid by the employer and
nonemployer contributors as the benefits came due 123,498 435,250
Employer payments subsequent to the measurement date 193,629 -
Total $2,133,689 $1,963,988
The amounts shown above for"employer payments subsequent to the measurement date"will be
included as a reduction to total OPEB liability in the subsequent fiscal period.
C-81
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued)
B. Teacher Group OPEB Plan (continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB (continued�
Other amounts reported as deferred outflows of resources and deferred inflows of resources will
be recognized in OPEB expense as follows:
Year Ended June 30:
2023 $(20,064)
2024 (20,064)
2025 (20,064)
2026 (20,064)
2027 (9,739)
Thereafter 66,067
C. Tennessee Plan
General Information About the OPEB Plan
P/an Description: Employees of the Schools who were hired prior to July 1, 2015 are provided with
post-65 retiree health insurance benefits through the closed Tennessee Plan (TNP) administered
by the Tennessee Department of Finance and Administration. This plan is considered to be a
multiple-employer defined benefit plan that is used to provide OPEB. However, for accounting
purposes, this plan will be treated as a single-employer plan. All eligible post-65 retired teachers
and disability participants of local education agencies,who choose coverage, participate in the TNP.
The TNP also includes eligible retirees of the state,certain component units of the state,and certain
local governmental entities. This plan is closed to the employees of all participating employers that
were hired on or after July 1, 2015.
Benefits Provided`. The state offers the TNP to help fill most of the coverage gaps created by
Medicare for eligible post-65 retired teachers and disabled participants of local education agencies.
Insurance coverage is the only postemployment benefit provided to retirees. The TNP does not
include pharmacy. In accordance with TCA 8-27-209, benefits of the TNP are established and
amended by cooperation of insurance committees created by TCA 8-27-201, 8-27-301 and 8-27-
701. Retirees and disabled employees of the state, component units, local education agencies, and
certain local governments who have reached the age of 65, are Medicare eligible and also receives
a benefit from the TCRS may participate in this plan. All plan members receive the same plan
benefits at the same premium rates. Participating employers determine their own policy related to
subsidizing the retiree premiums. The state, as a governmental nonemployer contributing entity
contributes to the premiums of eligible retirees of local education agencies based on years of
service. Therefore, retirees with 30 years of service receive $50 per month; 20 but less than 30
years, $37.50; and less than 20 years, $25. The TNP is funded on a pay-as-you-go basis and there
are no assets accumulating in a trust.
G82
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued)
C. Tennessee Plan lcontinued)
General Information About the OPEB Plan (continued�
Employees Covered by Bene�t Terms At June 30, 2021, the following employees of the Schools
were covered by the benefit terms of the TNP:
Inactive employees currently receiving benefit payments 163
Inactive employees entitled to but not yet receiving benefit payments 41
Active employees 369
Tota l 573
In accordance with TCA 8-27-209, the state insurance committees established by TCAs 8-27-201,
8-27-301 and 8-27-701 determine the required payments to the plan by member employers and
employees. Claims liabilities of the plan are periodically computed using actuarial and statistical
techniques to establish premium rates. Administrative costs are allocated to plan participants.
Employers contribute towards employee costs based on their own developed policies. During the
current reporting period, the Schools paid $0 to the TNP for OPEB benefits as they came due.
Total OPEB Liabilitv
Actuaria/Assumptions The collective total OPEB liability in the June 30, 2021 actuarial valuation
was determined using the following actuarial assumptions and other inputs, applied to all periods
included in the measurement, unless otherwise specified:
Inflation 2.25 percent
Salary increases Graded salary ranges from 3.44 to 8.72 percent
based on age, including inflation, averaging 4.00
percent
Healthcare cost trend rates 7.32% in 2021, decreasing annually over an 8 year
period to an ultimate rate of 4.50%
Unless noted otherwise, the actuarial demographic assumptions used in the June 30, 2021
valuations were the same as those employed in the July 1, 2020 Pension Actuarial Valuation of the
TCRS. These assumptions were developed by TCRS based on the results of an actuarial experience
study for the period July 1, 2016 -June 30, 2020. The demographic assumptions were adjusted to
more closely reflect actual and expected future experience. Mortality tables are used to measure
the probabilities of participants dying before and after retirement. The mortality rates employed in
this valuation are taken from the headcount-weighted below median teachers PUB-2010 Healthy
Participant Mortality Table for Annuitants for non-disabled post-retirement mortality, with mortality
improvement projected to all future years using Scale MP-2020. Post-retirement tables are adjusted
with a 19 percent load for males and an 18 percent load for females. Mortality rates for impaired
lives are the same as those used by TCRS and are taken from a gender distinct table published in
the IRS Ruling 96-7 for disabled lives with a 10 percent load with mortality improvement projected
to all future years using Scale MP-2020.
Discount Rate: The discount rate used to measure the total OPEB liability was 2.16 percent. This
rate reflects the interest rate derived from yields on 20-year, tax-exempt general obligation
municipal bonds, prevailing on the measurement date, with an average rating of AA/Aa as shown
on the Bond Buyer 20-Year Municipal GO AA index.
G83
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
11.OTHER POSTEMPLOYMENT BENEFITS (continued)
C. Tennessee Plan (continued)
Changes in Collective Total OPEB Liabilitv
Total OPEB liability at June 30, 2021 $1,961,241
Changes for the year:
Service cost 44,233
Interest 43,452
Differences between expected and actual experience (1,225)
Changes in assumptions (266,976)
Benefit payments (79,064)
Net changes (259,580)
Total OPEB liability at June 30, 2022 $1,701,661
Nonemployer contributing entities proportionate share of
the collective total OPEB liability $1,701,661
Employer's proportionate share of the collective total
OPEB liability $ -
Employer's proportion of the collective total OPEB liabiliry 0.00%
The Schools have a special funding situation related to benefits paid by the State of Tennessee for
its eligible retired employees participating in the TNP. The Schools' proportionate share of the
collective total OPEB liability was based on a projection of the employer's long-term share of
benefits paid through the OPEB plan relative to the projected share of benefit payments of all
participating employers and nonemployer contributing entities, actuarially determined. The
proportion changed 0.00 percent from the prior measurement date. The Schools recognized
$82,240 in revenue for support provided by nonemployer contributing entities for benefits paid to
the TNP for the School retired employees.
Changes in Assumptions The discount rate was changed from 2.21 percent as of the beginning of
the measurement period to 2.16 percent as of June 30, 2021.This change in assumptions increased
the total OPEB liability.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
OPEB Expense: For the fiscal year ended June 30, 2022, the Schools recognized OPEB expense of
$82,240.
G84
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
12.ON-BEHALF PAYMENTS
The State of Tennessee makes a contribution (on-behalf payment) for retired teachers who participate
in the State-administered Teacher Group Insurance Plan through TCRS as described in Note 11. The
on-behalf payment for 2022 was$290,373 and has been recorded as a revenue and expenditure in the
General Purpose School Fund.
The State of Tennessee makes a contribution (on-behalf payment) for retired teachers who participate
in the Tennessee Plan for the Local Employer as described in Note 11. The on-behalf payment for 2022
was$79,388 and has been recorded as a revenue and expenditure in the General Purpose School Fund.
13.TERMINATION BENEFITS
The Schools provide voluntary termination benefits for professional employees who agree to retire
before age 65. For employees who retire at age 60, or after 30 years of creditable service in the TCRS
with at least 10 years of service with the Schools, the Schools pay 85 percent of the retirees'individual
health insurance premiums for five years or until the retiree reaches age 65. The Schools fund their
contributions on a pay-as-you-go basis. During 2022, the Schools paid approximately $87,245 to 23
retirees, which has been recorded as an expenditure in the General Purpose School Fund.
The estimated liability and expense of school employee termination benefits reported in the
government-wide financial statements is $587,435. Termination benefits are measured at the
discounted present value of expected future benefit payments. The Schools used a discount rate of
2.40 percent and a projected annual healthcare cost trend rate of 3.60 percent to estimate the effect
of making these payments over a five-year period.
14.INTERFUND
Amounts due to/from other funds are from short-term borrowings between the funds primarily due to
federal grant activity. Amounts due to/from other funds at June 30, 2022 are as follows:
Due From Due To Amount
Nonmajor Funds General Purpose School Fund $1,434,333
General Purpose School Fund Nonmajor Funds 850,554
Interfund transfers were primarily to support capital projects, debt service and operations of the funds.
Interfund transfers for the current fiscal year were as follows:
Transfer In
General Capital Debt
General Purpose Projects Service Nonmajor
Transfer Out Fund School Fund Fund Fund Funds Total
General Fund $ - $15,493,963 $1,000,000 $4,970,000 $1,045,000 $22,508,963
General Purpose
School Fund - - 1,139,329 637,205 73,998 1,850,532
School Federal
Projects Fund - 321,929 - - - 321,929
Electric Fund 1,756,281 - - - - 1,756,281
Waterworks Fund 1,651,509 - - - - 1,651,509
Nonmajor Funds - 10,000 - - - 10,000
Total $3,407,790 $15,825,892 $2,139,329 $5,607,205 $1,118,998 $28,099,214
G85
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
15.COMMITMENTS
At June 30, 2022, the City has remaining contractual commitments for professional services,
construction contracts and equipment purchases totaling $10,894,057 for the following projects:
Spent-to- Commitment
Projects Date Remaining Committed Fund
S Illinois Multimodal Access Project $ 169,397 $ 129,403 Capital Projects
Rails to Trails 288,975 69,342 Capital Projects
Oak Ridge Gateway 83,962 28,408 Capital Projects
Oak Ridge Signalization Program Phase 2 - 215,000 Capital Projects
Oak Ridge Signalization Program Phase 3 3,108 439,892 Capital Projects
Airport Development 1,511,314 221,379 Capital Projects
Roof Replacements 164,692 176,778 Capital Projects
City Buildings Remodel 79,255 718,745 Capital Projects
Conference Center 161,225 255,543 Capital Projects
Schools HVAC 7,666,456 1,966,312 Capital Projects
ADA Blankenship Field - 72,000 Capital Projects
Cayenta Software 3,621,057 138,903 Capital Projects/ Electric
Line Construction 2,234,361 2,539,854 Electric
Electrical Engineering Services 221,561 35,309 Electric
Single-Phase Pad Mounted Transformers 443,122 780,633 Electric
Upgrades to Transmission Network - 230,923 Electric
Advanced Metering Infrastructure 200,940 883,960 Electric/Waterworks
East Plant&Emory Valley Pump Station
Grinders 116,663 97,414 Waterworks
Robertsville Pump Station Generator
Replacement 9,709 297,191 Waterworks
Water Line Replacement 107,925 12,075 Waterworks
Sewer Rehab Construction Admin 35,181 69,819 Waterworks
Two Water Main Replacements - 172,000 Waterworks
W Outer Dr Water Main Replacement 9,540 108,460 Waterworks
Turtle Park Wastewater Treatment Plant
Improvements 163,620 112,380 Waterworks
Water Treatment Plant 3,072,997 120,003 Waterworks
Fire Hydrant Replacement - 50,000 Waterworks
Vehicle Purchases - 147,644 Waterworks
Street Resurfacing - 402,349 State Street Aid
Breathing Air Compressors - 123,529 General
Equipment Purchases 102,995 278,809 Equipment Replacement
Total $20,468,055 $10,894,057
For the Capital Project Fund, Multimodal Access, Rails to Trails, Oak Ridge Gateway, Oak Ridge
Signalization Programs, and Airport Development projects are being funded primarily through grants
along with existing cash reserves. Remaining projects in the Capital Projects Fund are being funded
through debt proceeds.The Cayenta Software is being funded through debt proceeds and existing cash
reserves. Projects in the Electric, Waterworks, and State Street Aid Funds are being funded through a
combination of existing cash reserves, debt proceeds,fund revenues,and grant funding.The Breathing
Air Compressor purchase in the General Fund is being funded through a federal grant. Equipment
purchases in the City Equipment Replacement Fund is being funded through existing cash reserves.
G86
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
16. FUND BALANCE
Nonspendable fund balances are not in spendable form and include $517,367 in inventory, comprised
of $321,455 in the General Fund, $168,243 in the State Street Aid Fund and $27,669 in the Central
Cafeteria Fund and $12,538 in miscellaneous prepaids.
Restrictions and commitments in Education Programs of$3,612,189 and $3,243,424, respectively,were
primarily for the Career Ladder Program, Extended School Fund, Central Cafeteria Fund, and Internal
School Funds. The $5,171,565 restricted fund balance in the Debt Service Fund is from a portion of
local sales tax collections that resulted from a .50 percent increase that are restricted to paying the
debt issued for the renovation and construction at the ORHS until all the debt is extinguished.
Restrictions in the Drug and State Street Aid Funds are due to state law restrictions on the revenues
accounted for in those funds. The Capital Projects Fund includes $5,297,776 in funds restricted for
capital projects from unused bond proceeds and donations.
City Council assigned $21,775,109 for various endeavors, including education, debt service, capital
projects, and solid waste. Assigned fund balances includes $504,943 in assigned unspent budgeted
expenditures for general government, public works, and community services expenditures.
At June 30, 2022, fund balance is classified as follows:
General Capital Debt Nonmajor
General Purpose Projects Service Governmental
Fund School Fund Fund Fund Funds Total
Nonspendable:
Inventory $ 321,455 $ - $ - $ - $ 195,912 $ 517,367
Prepaids 4,845 5,400 - - 2,293 12,538
Restricted to:
Capital Projects - - 5,297,776 - - 5,297,776
Education Programs - 589,634 - - 3,022,555 3,612,189
Debt Service - - - 5,171,565 - 5,171,565
Drug Enforcement - - - - 527,589 527,589
Street Improvements - - - - 2,480,899 2,480,899
Public Transportation 33,822 - - - - 33,822
Committed to:
Education Programs - 3,095,586 - - 147,838 3,243,424
Assigned to:
2023 Budgeted Fund
Balance Draw 34,926 - - - - 34,926
Education Programs - 12,739,485 - - - 12,739,485
Debt Service - - - 4,409,730 - 4,409,730
Capital Projects - - 3,175,333 - - 3,175,333
General Government 299,991 - - - - 299,991
Public Works 179,952 - - - - 179,952
Community Services 25,000 - - - - 25,000
Solid Waste - - - - 910,692 910,692
Unassigned 31,152,181 - - - - 31,152,181
Total $32,052,172 $16,430,105 $8,473,109 $9,581,295 $7,287,778 $73,824,459
G87
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
17. LITIGATION
The City generally follows the practice of recording liabilities from claims and legal actions only when
it is probable that both an asset has been impaired or a liability has been incurred, and the amount of
loss can be reasonably estimated. Settlement of any potential claims from various lawsuits in which the
City is involved would not, in management's estimation, materially affect the financial statements of
the City.
18. RISK MANAGEMENT
The Insurance Fund, an internal service fund, is used to account for risks of loss related to torts; theft
of,damage to,and destruction of assets; natural disasters; errors and omissions; injuries to employees;
and employee medical insurance plans. The Insurance Fund does not account for risks related to the
School system assets or employees. Funding for the Insurance Fund is provided by the General, Electric
and Waterworks Funds through an allocation for insurance coverage based on each Fund's pro rata
share of services provided. The General Purpose School Fund is used to account for School system
risks of loss related to torts; theft of, damage to, and destruction of assets; natural disasters; errors
and omissions; injuries to employees; and employee medical insurance plans.
City employee group medical insurance, including dental,vision,and hearing insurance, is fully provided
through an independent insurance carrier with the City and employees contributing to payment of the
premiums. School employee medical insurance is fully provided through an independent insurance
carrier with the General Purpose School Fund and the employees contributing to payment of the
premiums.
Insurance coverage for assets related to general liability, auto liability, auto physical damage, errors
and omissions and workers compensation for city and school system employees is through public entity
risk pools operated as a risk sharing programs by the Tennessee Municipal League (TML) for the City
coverage and the Tennessee Risk Management Trust (TNRMT) for School coverage. These pools are
sustained by member premiums and the City and Schools pay an annual premium for its coverage.
Coverage through the pool is for payment of damage claims and to defend the City in any damage suit
that is included in the coverage, up to the policy's applicable limits, at the pool's expense. This includes
any other necessary costs relating to the defense. The City has the responsibility of following any
reporting requirements, including timely reporting of any incidents that might result in a damage claim.
The City is to do everything necessary to protect the rights of recovery of the pool and enforcement of
these rights by complying with all terms of the policy. The pool has the right to apply premium rate
changes as necessary.
Other risks of loss are covered by commercial insurance with the City being responsible for the per
occurrence deductible. In fiscal year 2022, the City paid $283,986 in net deductibles to the TML for
workers compensation and property liability claims.
G88
CITY OF OAK RIDGE, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
For the Year Ended 7une 30, 2022
18. RISK MANAGEMENT�continued�
The per occurrence deductible for each insurance policy covered by the Insurance Fund for fiscal year
2022 is as outlined below:
Annual Per
Occurrence
Insurance Plan Deductible
General Liability $ 1,000
Auto Liability 1,000
Auto Physical Damage 5,000
Errors and Omissions 5,000
Buildings and Personal Property 10,000
Equipment Breakdown 10,000
Electronic Data Processing Equipment 2,500
Worker's Compensation 50,000
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. Changes in the claims liability amount for the Insurance Fund for the fiscal year
ended June 30, 2022 were as follows:
Claims and
Beginning Changes in Claims Ending
Balance Estimate Payments Balance
$133,878 $470,836 $(279,872) $324,842
19. BUDGET AMENDMENTS
Original Additional
Governmental Fund Budget Appropriations Final Budget
General Purpose School Fund $61,572,213 $403,026 $61,975,239
School Federal Projects Fund 12,266,732 4,663,797 16,930,529
Other Education Fund 226,395 6,791 233,186
Extended School Program Fund 362,340 - 362,340
Central Cafeteria Fund 2,578,498 100,000 2,678,498
Total $77,006,178 $5,173,614 $82,179,792
G89
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended ]une 30, 2022
Schedule of Chanaes in Oak Ridge's Net Pension Liabilitv(Asset)and Related Ratios
Based on Particination in the Public Emnlovee Pension Plan of the TCRS
Last Fiscal Year Ended June 30
2014 2015 2016 2017 2018 2019 2020 2021
Total pension liability
Service cost $ 1,425,049 $ 1,387,540 $ 1,428,012 $ 1,428,844 $ 1,496,820 $ 1,549,106 $ 1,615,139 $ 1,653,787
Interest 6,762,256 7,053,731 7,240,779 7,500,104 7,674,564 7,899,346 8,076,277 8,265,623
Differences between actual
and expected experience 575,376 (846,275) 327,266 66,941 77,992 (694,663) (536,155) (1,063,278)
Changes of assumptions - - - 2,750,857 - - - 8,818,431
Benefit payments,including refunds of
employee contributions (4,676,925) (5,000,724) (5,282,289) (5,796,141) (6,123,954) (6,278,497) (6,480,303) (6,684,163)
Net change in total pension liability 4,085,756 2,594,272 3,713,768 5,950,605 3,125,422 2,475,292 2,674,958 10,990,400
Total pension liability-beginning 91,076,818 95,162,574 97,756,846 101,470,614 107,421,219 110,546,641 113,021,933 115,696,891
Total pension liability-ending(a) 95,162,574 97,756,846 101,470,614 107,421,219 110,546,641 113,021,933 115,696,891 126,687,291
Plan fiduciary net position
Contributions-employer 2,734,100 2,774,706 2,747,292 2,819,050 2,951,548 3,186,001 3,330,230 3,381,158
Contributions-employee 146 - 834 - - - - -
Net investment income 12,763,309 2,701,770 2,334,612 9,922,995 7,834,670 7,375,608 5,122,583 27,122,521
Benefit payments,including refunds of
employee contributions (4,676,925) (5,000,724) (5,282,289) (5,796,141) (6,123,954) (6,278,497) (6,480,303) (6,684,163)
Administrative expenses (17,826) (18,260) (27,174) (30,795) (34,671) (33,443) (33,349) (33,311)
Net change in plan fiduciary net position 10,802,804 457,492 (226,725) 6,915,109 4,627,593 4,249,669 1,939,161 23,786,205
Plan fiduciary net position-beginning 78,041,785 88,844,589 89,302,081 89,075,356 95,990,465 100,618,058 104,867,727 106,806,888
Plan fiduciary net position-ending(b) 88,844,589 89,302,081 89,075,356 95,990,465 100,618,058 104,867,727 106,806,888 130,593,093
Net pension liability(asset)-ending(a)-(b) $ 6,317,985 $ 8,454,765 $ 12,395,258 $ 11,430,754 $ 9,928,583 $ 8,154,206 $ 8,890,003 $ (3,905,802)
Plan fiduciary net position as a percentage
of total pension liability 9336% 9135% 87.78% 8936% 91.02% 92.79% 92.32% 103.08%
Covered payroll $ 18,386,685 $ 18,522,739 $ 18,339,732 $ 18,818,760 $ 19,178,346 $ 20,190,121 $ 20,813,939 $ 21,132,241
Net pension liability(asset)as a
percentage of covered payroll 34.36% 45.65% 67.59% 60.74% 51.77% 4039% 42.71% -18.48%
This is a 10-year schedule; however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future years until 10 years of information is
available.
Notes to Schedule
Changes ofassumptions.• In 2021,amounts reported as changes of assumptions resulted from changes to the inflation rate,investment rate of return,cost-of-living adjustment,and mortality
improvements.In 2017,amounts reported as changes of assumptions resulted from changes to the inflation rate,investment rate of return,cost-of-living adjustment,salary growth and mortaliry
imnrovements.
D-1
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended )une 30, 2022
Schedule of Oak Ridae Contributions
Based on Particination in the Public Emplovee Pension Plan of the TCRS
Last Fiscal Year Ended June 30
2014 2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contribution $ 2,734,100 $ 2,774,706 $ 2,747,292 $ 2,819,050 $ 2,951,548 $ 3,186,001 $ 3,330,230 $ 3,381,158 $ 3,579,005
Contributions in relation to the
actuarially determined contribution 2,734,100 2,774,706 2,747,292 2,819,050 2,951,548 3,186,001 3,330,230 3,381,158 3,579,005
Contribution deficiency $ - $ - $ - $ - $ - $ - $ - $ - $ -
Covered payroll $ 18,386,685 $ 18,522,735 $ 18,339,732 $ 18,818,760 $ 19,178,346 $20,190,121 $20,813,939 $21,132,241 $22,368,781
Contributions as a percentage
of Covered payroll 14.87% 14.98% 14.98% 14.98% 15.39% 15.78% 16.00% 16.00% 16.00%
This is a 10-year schedule; however,the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future years until 10 years of information
is available.
Notes to Schedule
�aluation date:Actuarially determined contribution rates for fiscal year 2022 were calculated based on the June 30,2020 actuarial valuation.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
Amortization method Level dollar,closed(not to exceed 20 years)
Remaining amortization period Varies by Year
Asset Valuation 10-year smoothed within a 20 percent corridor to market value
Inflation 2.50 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based on age,including inflation,averaging 4.00 percent
Investment rate of return 7.25 percent, net of investment expense, including inflation
Retirement age Pattern of retirement determined by experience study
Mortality Customized table based on actual experience including an adjustment for some anticipated improvement
Cost of living adjustments 2.25 percent
Changes ofassumptions: In 2017,the following assumptions were changed: decreased inflation rate from 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50 percent
to 7.25 percent; decreased the cost-of-living adjustment from 2.50 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.00 percent;
and modified mortalitv assumotions.
D-2
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended )une 30, 2022
Schedule of Chanaes in Oak Ridae Schools Net Pension Liabilitv(Asset)and Related Ratios
Based on Participation in the Public Emplovee Pension Plan of the TCRS
Last Fiscal Year Ended June 30
2014 2015 2016 2017 2018 2019 2020 2021
Total pension liability
Service cost $ 593,620 $ 576,571 $ 558,772 $ 553,182 $ 534,843 $ 511,277 $ 451,076 $ 399,832
Interest 1,920,483 1,992,432 2,019,852 2,070,010 2,140,572 2,199,907 2,280,384 2,329,426
Differences between actual and expected experience (141,131) (738,027) (399,170) 177,442 (227,304) 163,594 (224,433) 57,671
Changes of assumptions - - - 685,078 - - - 1,572,648
Benefit payments, including refunds of
employee contributions (1,385,505) (1,407,675) (1,487,476) (1,522,704) (1,562,047) (1,650,215) (1,758,888) (1,799,812)
Net change in total pension liability 987,467 423,301 691,978 1,963,008 886,064 1,224,563 748,139 2,559,765
Total pension liability-beginning 25,705,562 26,693,OZ9 27,116,330 27,808,308 29,771,316 30,657,380 31,881,943 32,630,082
Total pension liability-ending(a) 26,693,029 27,116,330 27,808,308 29,771,316 30,657,380 31,881,943 32,630,082 35,189,847
Plan fiduciary net position
Contributions-employer 601,852 603,825 604,601 597,818 565,950 526,893 431,892 445,975
Contributions-employee 310,746 300,414 300,796 297,422 282,349 262,308 216,813 224,357
Net investment income 3,876,773 824,811 717,506 3,076,562 2,452,150 2,322,653 1,612,982 8,513,471
Benefit payments, including refunds of
employee contributions (1,385,505) (1,407,675) (1,487,476) (1,522,704) (1,562,047) (1,650,215) (1,758,888) (1,799,812)
Administrative expenses (7,996) (9,355) (13,501) (13,912) (14,364) (12,003) (10,658) (10,167)
Net change in plan fiduciary net position 3,395,870 312,020 121,926 2,435,186 1,724,038 1,449,636 492,141 7,373,824
Plan fiduciary net position-beginning 23,640,933 27,036,803 27,348,823 27,470,749 29,905,935 31,629,973 33,079,609 33,571,750
Plan fiduciary net position-ending (b) 27,036,803 27,348,823 27,470,749 29,905,935 31,629,973 33,079,609 33,571,750 40,945,574
Net pension liability(asset)-ending(a)-(b) $ (343,774) $ (232,493) $ 337,559 $ (134,619) $ (972,593) $(1,197,666) $ (941,668) $(5,755,727)
Plan fiduciary net position as a percentage
of total pension liability(asset) 101.29% 100.86% 98.79% 100.45% 103.17% 103.76% 102.89% 116.36%
Covered payroll $5,912,101 $6,008,215 $6,015,939 $5,948,434 $5,631,33Z $ 5,237,502 $ 4,816,623 $ 4,868,666
Net pension liability(asset)as a
percentage of covered payroll -5.81% -3.87% 5.61% -2.26% -17.27% -22.87% -19.55% -118.22%
This is a 10-year schedule; however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future years until 10 years of
information is available.
Notes to Schedule
Changes ofassumptions:In 2021,amounts reported as changes of assumptions resulted from changes to the inflation rate,investment rate of return,cost-of-living adjustment,and
mortality improvements. In 2017,amounts reported as changes of assumptions resulted from changes to the inflation rate, investment rate of return,cost-of-living adjustment,salary
growth,and mortality improvements.
D-3
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended 7une 30, 2022
Schedule of Oak Ridae Schools Contributions
Based on Particination in the Public Emplovee Pension Plan of the TCRS
Last Fiscal Year Ended June 30
2014 2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contribution $ 601,852 $ 603,825 $ 604,601 $ 597,818 $ 565,948 $ 526,893 $ 431,892 $ 445,975 $ 305,182
Contributions in relation to the
actuarially determined contribution 601,852 603,825 604,601 597,818 565,948 526,893 431,892 445,975 305,182
Contribution deficiency $ - $ - $ - $ - $ - $ - $ - $ - $ -
Covered payroll $5,912,101 $6,008,215 $6,015,939 $5,948,434 $5,631,323 $5,237,495 $ 4,816,623 $ 4,868,666 $4,440,529
Contributions as a percentage
of covered payroll 10.18% 10.05% 10.05% 10.05% 10.05% 10.06% 8.97% 9.16% 6.87%
This is a 10-year schedule; however, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future years until 10 years of
information is available.
Notes to Schedule
�aluation date: Actuarially determined contribution rates for fiscal year 2022 were calculated based on the June 30,2020 actuarial valuation.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
Amortization method Level dollar,closed(not to exceed 20 years)
Remaininq amortization period Varies by year
Asset Valuation 10-year smoothed within a 20 percent corridor to market value
Inflation 2.50 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based on age, including inflation,averaging 4.00 percent
Investment rate of return 7.25 percent, net of investment expense, including inflation
Retirement age Pattern of retirement determined by experience study
Mortality Customized table based on actual experience including an adjustment for some anticipated improvement
Cost of livinq adlustments 2.25 percent
Changes ofassumptions: In 2017,the following assumptions were changed: decreased inflation rate from 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50
percent to 7.25 percent; decreased the cost-of-living adjustment from 2.50 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average
of 4.00 percent; and modified mortality assumptions.
D-4
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended )une 30, 2022
Schedule of Oak Rid4e Schools Proportionate Share of the Net Pension Liabilitv lAsset)
Based on Participation in the Teacher Retirement Plan of the TCRS
Last Fiscal Year Ended June 30
2015 2016 2017 2018 2019 2020 2021
Schools' proportion of the net pension liability(asset) 0.262638% 0.214610% 0.265898% 0.232039% 0.275306% 0.290066% 0.299617%
Schools' proportionate share of the net pension liability(asset) $ (10,566) $ (22,342) $ (70,154) $ (105,236) $ (155,406) $ (164,944) $ (324,548)
Schools'covered payroll 545,692 944,289 1,651,613 2,027,749 2,913,297 3,660,406 4,298,242
Schools' proportionate share of the net pension liability(asset)
as a percentage of its covered payroll -1.94% -2.37% -4.25% -5.19% -5.33% -4.51% -7.55%
Plan fiduciary net position as a
percentage of the total pension liability 127.46% 121.88% 126.81% 126.97% 123.07% 116.52% 121.53%
This is a 10-year schedule; however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future years until 10 years
of information is available.
Schedule of Oak Ridae Schools Contributions
Based on Participation in the Teacher Retirement Plan of the TCRS
Last Fiscal Year Ended June 30
2015 2016 2017 2018 2019 2020 2021 2022
Contractually required contribution $ 546 $ 23,637 $ 69,808 $ 33,067 $ 56,520 $ 74,306 $ 88,216 $ 111,413
Contributions in relation to the
contractually required contribution 21,828 37,772 69,808 81,110 56,520 74,306 88,216 111,413
Contribution deficiency(excess) $ (21,282) $ (14,135) $ - $ (48,043) $ - $ - $ - $ -
Covered payroll $ 545,692 $ 944,289 $ 1,651,613 $2,027,749 $2,913,297 $3,660,406 $4,335,612 $ 5,500,052
Contributions as a percentage of covered payroll 4.00% 4.00% 4.23% 4.00% 1.94% 2.03% 2.03% 2.03%
Contributions as a percentage of covered payroll
into the Pension Stabilization Reserve Trust 0.00% 0.00% 0.00% 0.00% 2.06% 1.97% 1.97% 1.97%
This is a 10-year schedule; however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future years until 10 years
of information is available.
Notes to Schedule
Changes ot assumptions: In ZOZ1, the tollowing assumptions were changed: decreased intlation rate trom 2.50 percent to 2.25 percent; decreased the investment rate ot return
from 7.25 percent to 6.75 percent; decreased cost-of-living adjustment from 2.25 percent to 2.125 percent; and modified mortality assumptions. In 2017, the following
assumptions were changed: decreased inflation rate from 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50 percent to 7.25 percent; decreased the
cost-of-living adjustment from 2.50 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.00 percent; and modified
mortality assumptions.
D-5
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended )une 30, 2022
Schedule of Oak Rid4e Schools Pr000rtionate Share of the Net Pension Liabilitv(Asset)
Based on Particination in the Teacher Leaacv Pension Plan of the TCRS
Last Fiscal Year Ended June 30
2014 2015 2016 2017 2018 2019 2020 2021
Schools'proportion of the net pension liability(asset) 0.643262% 0.662651% 0.714582% 0.709296% 0.729158% 0.751065% 0.769546% 0.798904%
Schools'proportionate share of the
net pension liability(asset) $ (104,527) $ 271,444 $ 4,465,739 $ (232,072) $(2,565,845) $(7,722,304) $(5,868,358) $(34,458,664)
Schools'covered payroll 25,247,996 24,806,330 25,794,986 25,166,846 25,532,743 25,184,288 25,612,457 26,095,337
Schools'proportionate share of the
net pension liability(asset)as a
percentage of its covered payroll -0.41% 1.09% 17.31% -0.92% -10.05% -30.66% -22.91% -132.05%
Plan fiduciary net position as a
percentage of the total pension liability 100.08% 99.81% 97.14% 100.14% 101.49% 104.28% 103.09% 116.13%
This is a 10-year schedule; however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future years until 10 years of information
is available.
Schedule of Oak Ridae Schools Contributions
Based on Particiaation in the Teacher Le4acv Pension Plan of the TCRS
Last Fiscal Year Ended June 30
2014 2015 2016 2017 2018 2019 2020 2021 2022
Contractually required contribution $ 2,242,022 $ 2,242,495 $ 2,331,864 $ 2,266,622 $ 2,318,372 $ 2,634,279 $ 2,722,608 $ 2,684,797 $ 2,688,853
Contributions in relation to the
contracutally required contribution 2,242,022 2,242,495 2,331,864 2,266,622 2,318,372 2,634,279 2,722,608 2,684,797 2,688,853
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ -
Covered payroll $25,247,996 $24,806,330 $25,794,986 $25,166,846 $25,532,743 $25,184,312 $25,612,457 $26,086,003 $ 26,086,003
Contributions as a percentage
of covered payroll 8.88% 9.04% 9.04% 9.01% 9.08% 10.46% 10.63% 10.29% 10.31%
This is a 10-year schedule; however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future years until 10 years of information
is available.
Notes to Schedule
Changes ofassumptions. In 2021,the following assumptions were changed: decreased inflation rate from 2.50 percent to 2.25 percent; decreased the investment rate of return from 7.25 percent
to 6.75 percent; decreased the cost-of-living adjustment from 2.25 percent to 2.125 percent; and modified mortality assumptions. In 2017, the following assumptions were changed: decreased
inflation rate from 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.50 percent to 2.25
percent;decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.00 percent;and modified mortality assumptions.
D-6
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended )une 30, 2022
Schedule of Chanaes in Oak Ridae Board of Education Hvbrid with Cost Controls' Net Pension Liabilitv(Asset)and Related Ratios
Based on Participation in the Public Emplovee Pension Plan of the TCRS
Last Fiscal Year Ended June 30
2015 2016 2017 2018 2019 2020 2021
Total pension liability
Service cost $ 948 $ 8,266 $ 33,725 $ 78,884 $ 111,246 $ 158,660 $ 193,745
Interest 71 620 4,373 11,957 22,471 38,074 57,410
Differences between actual and expected experience (1,019) 15,701 20,560 22,417 34,683 38,004 15,261
Changes of assumptions - - 2,798 - - - 68,802
Benefit payments, including refunds
of employee contributions - - - - (1,204) - (6,249)
Net change in total pension liability - 24,587 61,456 113,258 167,196 234,738 328,969
Total pension liability- beginning - - 24,587 86,043 199,301 366,497 601,235
Total pension liability-ending (a) - 24,587 86,043 199,301 366,497 601,235 930,204
Plan fiduciary net position
Contributions-employer 541 12,691 37,547 61,210 34,943 59,833 72,312
Contributions-employee 677 15,864 46,935 76,513 111,998 158,873 184,031
Net investmet income - 370 7,928 15,431 25,111 26,672 204,068
Benefit payments, including refunds
of employee contributions - - - - (1,204) - (6,249)
Administrative expenses (40) (1,165) (3,234) (5,083) (6,539) (7,122) (8,419)
Other - - 1,470 - - - -
Net change in plan fiduciary net position 1,178 27,760 90,646 148,071 164,309 238,256 445,743
Plan fiduciary net position - beginning - 1,178 28,938 119,584 267,655 431,964 670,220
Plan fiduciary net position -ending (b) 1,178 28,938 119,584 267,655 431,964 670,220 1,115,963
Net pension liability(asset)-ending(a)-(b) $ (1,178) $ (4,351) $ (33,541) $ (68,354) $ (65,467) $ (68,985) $ (185,759)
Plan fiduciary net position as a
percentage of total pension liability 0.00% 117.70% 138.98% 134.30% 117.86% 111.47% 119.97%
Covered payroll $ 13,535 $ 303,747 $ 938,688 $ 1,530,245 $ 2,239,932 $ 2,692,050 $ 3,435,754
Net pension liability(asset)as a
percentage of covered payroll -8.70% -1.43% -3.57% -4.47% -2.92% -2.56% -5.41%
This is a 10-year schedule; however, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future years until 10
vears of information is available.
Notes to Schedule
Changes ofassumptions: In 2021, amounts reported as changes of assumptions resulted from changes to the inflation rate, investment rate of return, cost-of-living adjustment,
and mortality improvements. In 2017, amounts reported as changes of assumptions resulted from changes to the inflation rate, investment rate of return, cost-of-living
adjustment, salary growth,and mortality improvements
D-7
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
Schedule of Oak Rid4e Board of Education Hvbrid with Cost Controls'Contributions
Based on Participation in the Public Emnlovee Pension Plan of the TCRS
Last Fiscal Year Ended June 30
2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contribution $ 271 $ 6,616 $ Z3,561 $ 27,850 $ 34,943 $ 59,833 $ 7Z,312 $ 75,989
Contributions in relation to the
actuarially determined contribution 541 12,691 37,547 61,210 34,943 59,833 72,312 75,989
Contribution deficiency(excess) $ (270) $ (6,075) $ (13,986) $ (33,360) $ - $ - $ - $ -
Covered payroll $ 13,535 $ 303,747 $ 938,688 $ 1,530,245 $2,239,932 $ 2,692,050 $3,435,754 $ 3,823,006
Contributions as a percentage of covered payroll 4.00% 4.18% 4.00% 4.00% 1.56% 2.22% 2.10% 1.99%
Contributions as a percentage of covered payroll
into the Pension Stabilization Reserve Trust 0.00% 0.00% 0.00% 0.00% 2.44% 1.78% 1.90% 2.01%
This is a 10-year schedule; however,the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future years until 10 years of
information is available.
Notes to Schedule
�aluation date: Actuarially determined contribution rates for fiscal year 2022 were calculated based on the June 30, 2020 actuarial valuation.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
Amortization method Level dollar,closed (not to exceed 20 years)
Remaininq amortization period Varies by year
Asset valuation 10-year smoothed within a 20 percent corridor to market value
Inflation 2.50 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based on age, including inflation,averaging 4.00 percent
Investment rate of return 7.25 percent, net of investment expense, including inflation
Retirement aqe Pattern of retirement determined by experience
Mortality Customized table based on actual experience including an adjustment for some anticipated improvement
Cost of livinq adiustments 2.25 percent
Changes ofassumptions: In 2017,the following assumptions were changed: decreased inflation rate from 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50
percent to 7.25 percent; decreased the cost-of-living adjustment from 2.50 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average
of 4.00 percent.
D-8
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended )une 30, 2022
Citv Emplovee's Postemplovment Benefits
Schedule of Chanaes in Total OPEB Liabilitv and Related Ratios
Based on Participation in the Local Government OPEB Plan
Last Fiscal Year Ended June 30
2018 2019 2020 2021 2022
Total OPEB Liability
Service cost $ 174,349 $ 264,519 $ 224,148 $ 273,255 $ 349,582
Interest 108,763 189,809 122,113 141,594 102,270
Changes of benefit terms - (785,309) 790,023 - -
Differences between expected and actual experience - (1,265,539) (426,861) (132,567) 199,455
Changes in assumptions (70,834) (113,763) 63,926 393,503 (877,338)
Changes in other inputs - 2,221,390 - - -
Benefit payments (206,224) (252,292) (164,760) (158,577) (157,981)
Net change in total OPEB liability 6,054 258,815 608,589 517,208 (384,012)
Total OPEB liability - beginning 2,965,905 2,971,959 3,230,774 3,839,363 4,356,571
Total OPEB liability - ending $ 2,971,959 $ 3,230,774 $ 3,839,363 $ 4,356,571 $ 3,972,559
Covered payroll $ 18,922,449 $ 19,841,527 $ 21,657,456 $ 18,298,999 $ 23,589,326
Total OPEB liability as a percentage of covered payroll 15.7% 16.3% 17.7% 23.8% 16.8%
Changes in assumptions:
Discount rates 3.56% 3.62% 3.51% 2.21% 2.16%
Assumed initial healthcare cost trend rate 5.40% 6.75% 6.03% 7.56% 7.36%
Assumed long-term price inflation 2.25% 2.25% 2.20% 2.10% 2.25%
This is a 10-year schedule; however, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in
future years until 10 years of information is available.
Notes to Schedule
Amounts reported as changes in assumptions also include changes in expected per capita health claims to reflect more recent information as of the
measurement date.
Changes in benefit terms reflect changes in the subsidy level of the employer's direct premium.
There are no assets accumulated in a trust to pay related benefits related to this OPEB plan.
D-9
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended 7une 30, 2022
School Employee's Postemployment Benefits
Schedule of Chanaes in Total OPEB Liabilitv and Related Ratios
Based on Participation in the Local Government OPEB Plan
Last Fiscal Year Ended June 30
2018 2019 2020 2021 2022
Collective Total OPEB Liability
Service cost $ 623,425 $ 579,515 $ 521,587 $ 378,249 $ 500,110
Interest 322,788 392,019 300,242 259,712 199,980
Changes in benefit terms - (896,256) (2,296,835) - -
Differences between expected and actual experience - (2,696,855) 1,621,329 323,428 340,038
Changes in assumptions and other inputs (490,174) 370,006 (568,662) 880,563 159,383
Benefit payments (424,234) (485,212) (334,382) (323,624) (303,500)
Net change in total OPEB liability 31,805 (2,736,783) (756,721) 1,518,328 896,011
Total OPEB liability- beginning 10,643,068 10,674,873 7,938,090 7,181,369 8,699,697
Total OPEB liability- ending $10,674,873 $ 7,938,090 $ 7,181,369 $ 8,699,697 $ 9,595,708
Employer proportionate share of the total OPEP liability $ 7,697,256 $ 5,769,324 $ 5,064,825 $ 6,249,923 $ 6,537,967
Nonemployer contributing entity proportionate
share of the total OPEB liability 2,977,617 2,168,766 2,116,544 2,449,774 3,057,741
$10,674,873 $ 7,938,090 $ 7,181,369 $ 8,699,697 $ 9,595,708
Covered payroll $26,795,318 $27,562,952 $28,002,656 $29,272,863 $30,421,615
Employer's total OPEB liability as a percentage of covered payroll 28.73% 20.93% 18.09% 21.35% 21.49%
Changes in assumptions:
Discount rates 3.56% 3.62% 3.51% 2.21% 2.16%
Assumed initial healthcare cost trend rate 5.40% 6.75% 6.03% 7.56% 7.36%
Assumed long-term price inflation 2.25% 2.25% 2.20% 2.10% 2.25%
This is a 10-year schedule; however, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in
future vears until 10 vears of information is available.
Notes to Schedule
Amounts reported as changes in assumptions also include changes in medical and drug trend rate assumptions and changes in expected per capita health
claims to reflect more recent information as of the measurement date.
Changes in benefit terms reflect changes in the subsidy level of the employer's direct premium.
There are no assets accumulated in a trust to pay related benefits related to this OPEB plan,
D-10
CITY OF OAK RIDGE, TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended )une 30, 2022
School Emplovee's Postemployment Benefits
Schedule of Chanaes in Total OPEB Liabilitv and Related Ratios
Based on Participation in the TNP OPEB Plan
Last Fiscal Year Ended June 30
2018 2019 2020 2021 2022
Collective Total OPEB Liability
Service cost $ 34,159 $ 27,854 $ 24,568 $ 31,362 $ 44,233
Interest 49,542 55,708 52,047 59,552 43,452
Changes in benefit terms - - - - -
Differences between expected and actual experience - (124,727) 226,432 (75,689) (1,225)
Changes in assumptions (136,023) (10,695) 22,697 319,319 (266,976)
Benefit payments (72,750) (73,655) (70,802) (76,526) (79,064)
Net change in total OPEB liability (125,072) (125,515) 254,942 258,018 (259,580)
Total OPEB liability - beginning 1,698,868 1,573,796 1,448,281 1,703,223 1,961,241
Total OPEB liability- ending $ 1,573,796 $ 1,448,281 $ 1,703,223 $ 1,961,241 $ 1,701,661
Employer proportionate share of the total OPEP liability $ - $ - $ - $ - $ -
Nonemployer contributing entity proportionate
share of the total OPEB liability 1,573,796 1,448,281 1,703,223 1,961,241 1,701,661
$ 1,573,796 $ 1,448,281 $ 1,703,223 $ 1,961,241 $ 1,701,661
Covered payroll $ 6,887,121 $ 7,159,117 $ 7,462,834 $ 7,508,673 $ 8,304,420
Employer's total OPEB liability as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00%
Changes in assumptions:
Discount rates 3.56% 3.62% 3.51% 2.21% 2.16%
Assumed initial healthcare cost trend rate 5.40% 6.75% 6.03% 7.56% 7.36%
Assumed long-term price inflation 2.25% 2.25% 2.20% 2.10% 2.25%
This is a 10-year schedule; however, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in
future vears until 10 vears of information is available.
Notes to Schedule
Amounts reported as changes in assumptions also include changes in expected per capita health claims to reflect more recent information as of the
measurement date.
There are no assets accumulated in a trust to pay related benefits related to this OPEB plan.
D-11
CITY OF OAK RIDGE, TENNESSEE
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
The Special Revenue Funds are used to account for the proceeds of specific revenues that are legally
restricted to finance specific functions or activities of government and which, therefore, cannot be diverted
to other uses.
State Street Aid Fund: This fund accounts for maintenance of all non-State streets in the City. Revenues
are provided from a portion of the State of Tennessee gasoline and motor fuels tax.
Drug Enforcement Program Fund: This fund is used to account for investigations of violations of
controlled substance laws and is funded primarily from the receipt of fines and forfeitures related to drug
enforcement cases.
Solid Waste Fund: This fund is used to account for the collection and disposal of residential refuse and
recyclables and is funded by a monthly fee charged to residential customers.
Other Education Special Revenue Fund: This fund is used to account for the activities assisting at risk
children and their families. The fund accounts for the Family Resource Center and the Safe Schools Act
activities which are funded by federal awards.
Extended School Program Fund: This fund is used to account for the fees collected for the Schools'
extended child care program.
Central Cafeteria Fund: This fund is used to account for the activities related to food services. The
revenue also supports preparing and serving regular and incidental meals, lunches, or snacks in connection
with school activities and food delivery. Revenue is collected in the form of ineal charges, fees for special
events and programs, and state and federal reimbursements under the national school lunch and breakfast
programs.
Internal School Funds: This fund is used to account for the funds held at individual schools for which
all earnings and resources of the fund are used to benefit the students.
E-1
CITY OF OAK RIDGE, TENNESSEE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
7une 30, 2022
otber
State Drug Education Extended Internal Total Nonmajor
Street Enforcement Solid Special School Central School Governmental
Aid Program Waste Revenue Program Cafeteria Funds Funds
Assets
Cash and cash equivalents $ 2,311,060 $ 530,438 $ 952,400 $ - $ - $ 1,220,428 $ 1,097,819 $ 6,112,145
Accounts receivable - - 127,690 - - 5,542 - 133,232
Due from other funds - - - 4,683 150,816 695,055 - 850,554
Due from other governments 190,271 - - 25,324 - 72,986 - 288,581
Inventories,at cost 168,243 - - - - 27,669 - 195,912
Prepaid items - 2,293 - - - - - 2,293
Total assets $ 2,669,574 $ 532,731 $ 1,080,090 $ 30,007 $ 150,816 $ 2,021,680 $ 1,097,819 $ 7,582,717
Liabilities
Accounts payable $ 20,432 $ 2,849 $ 169,398 $ - $ 81 $ 73,716 $ - $ 266,476
Accrued liabilities - - - 3,396 2,897 - - 6,293
Due to other funds - - - - - - - -
Unearned revenue - - - - - - - -
Totalliabilities 20,432 2,849 169,398 3,396 2,978 73,716 - 272,769
Deferred inflows of resources - - - - - 22,170 - 22,170
Fund balances
Nonspendable 168,243 2,293 - - - 27,669 - 198,205
Restricted 2,480,899 527,589 - 26,611 - 1,898,125 1,097,819 6,031,043
Committed - - - - 147,838 - - 147,838
Assigned - - 910,692 - - - - 910,692
Total fund balances 2,649,142 529,882 910,692 26,611 147,838 1,925,794 1,097,819 7,287,778
Total liabilities,deferred inflows of
resources and fund balances $ 2,669,574 $ 532,731 $ 1,080,090 $ 30,007 $ 150,816 $ 2,021,680 $ 1,097,819 $ 7,582,717
E-2
CITY OF OAK RIDGE, TENNESSEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended 7une 30, 2022
otber
State Drug Education Extended Internal Total Nonmajor
Street Enforcement Solid Special School Central School Governmental
Aid Program Waste Revenue Program Cafeteria Funds Funds
Revenues
Intergovernmental $ 1,093,542 $ 37,191 $ - $ 121,212 $ - 3,263,735 $ - $ 4,515,680
Charges for services - - 2,219,435 - 371,372 170,138 - 2,760,945
Fines and forfeitures - 21,524 - - - - - 21,524
Investment earnings 4,941 1,161 2,189 - - - - 8,291
Miscellaneous - 21,999 - 30,125 - 2,115 1,053,980 1,108,219
Total revenues 1,098,483 81,875 2,221,624 151,337 371,372 3,435,988 1,053,980 8,414,659
Expenditures
Public safety - 82,369 - - - - - 82,369
Public warks 953,248 - 2,116,952 - - - - 3,070,200
Community services - - - - - - - -
Education - - - 230,174 311,837 2,574,210 1,025,326 4,141,547
Total expenditures 953,248 82,369 2,116,952 230,174 3ll,837 2,574,210 1,025,326 7,294,ll6
Excess(deficiency)of revenues
over(under)expenditures 145,235 (494) 104,672 (78,837) 59,535 861,778 28,654 1,120,543
Other financing sources(uses)
Transfers in 730,000 - 315,000 73,998 - - - 1,118,998
Transfers out - - - - (10,000) - - (10,000)
Total other financing sources(uses) 730,000 - 315,000 73,998 (10,000) - - 1,108,998
Net change in fund balances 875,235 (494) 419,672 (4,839) 49,535 861,778 28,654 2,229,541
Fund balance-beginning 1,773,907 530,376 491,020 31,450 98,303 1,064,016 1,069,165 5,058,237
Fund balance-ending $ 2,649,142 $ 529,882 $ 910,692 $ 26,611 $ 147,838 $ 1,925,794 $ 1,097,819 $ 7,287,778
E-3
CITY OF OAK RIDGE, TENNESSEE
STATE STREET AID FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended ]une 30, 2022
Adjustment Actual on Variance
to Budgetary Budgetary Positive
Actual Basis Basis Budget (Negative)
Revenues
Intergovernmental $ 1,093,542 $ - $ 1,093,542 $ 1,025,000 $ 68,542
Investment earnings 4,941 - 4,941 18,000 (13,059)
Total revenues 1,098,483 - 1,098,483 1,043,000 55,483
Expenditures
Public works 953,248 402,349 1,355,597 2,544,000 1,188,403
Total expenditures 953,248 402,349 1,355,597 2,544,000 1,188,403
Excess (deficiency) of revenues
over(under) expenditures 145,235 (402,349) (257,114) (1,501,000) 1,243,886
Other financing sources
Transfers in 730,000 - 730,000 730,000 -
Total other financing sources 730,000 - 730,000 730,000 -
Net change in fund balances 875,235 (402,349) 472,886 (771,000) 1,243,886
Fund balance -beginning 1,773,907 - 1,773,907 ],773,907 -
Fund balance - ending $ 2,649,142 $ (402,349) $ 2,246,793 $ ],002,907 $ 1,243,886
E-4
CITY OF OAK RIDGE, TENNESSEE
DRUG ENFORCEMENT PROGRAM FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended )une 30, 2022
Actual on Variance
Budgetary Positive
Basis Budget (Negative)
Revenues
Intergovernmental $ 3 7,191 $ - $ 3 7,191
Fines and forfeitures 21,524 45,000 (23,476)
Investment earnings 1,161 4,000 (2,839)
Miscellaneous 21,999 1,000 20,999
Total revenues 81,875 50,000 31,875
Expenditures
Public safety 82,369 255,200 172,831
Total expenditures 82,369 255,200 172,831
(Deficiency) excess of revenues
(under) over expenditures (494) (205,200) 204,706
Fund balance - beginning 530,376 530,376 -
Fund balance - ending $ 529,882 $ 325,176 $ 204,706
E-5
CITY OF OAK RIDGE, TENNESSEE
SOLID WASTE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended ]une 30, 2022
Actual on Variance
Budgetary Positive
Basis Budget (Negative)
Revenues
Charges for services $ 2,219,435 $ 2,234,600 $ (15,165)
Investment earnings 2,189 - 2,189
Total revenues 2,221,624 2,234,600 (12,976)
Expenditures
Public works 2,116,952 2,548,065 431,113
Total expenditures 2,116,952 2,548,065 431,113
Excess (deficiency) of revenues
over(under) expenditures 104,672 (313,465) 418,137
Other financing sources
Transfers in 315,000 315,000 -
Total other financing sources 315,000 315,000 -
Net change in fund balances 419,672 1,535 418,137
Fund balance - beginning 491,020 491,020 -
Fundbalance - ending $ 910,692 $ 492,555 $ 418,137
E-6
CITY OF OAK RIDGE, TENNESSEE
OTHER EDUCATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended )une 30, 2022
Actual on Variance
Budgetary Positive
Basis Budget (Negative)
Revenues
Intergovernmental $ 121,212 $ 121,402 $ (190)
Miscellaneous 30,125 35,000 (4,875)
Total revenues 151,337 156,402 (5,065)
Expenditures
Education 230,174 233,186 3,012
Total expenditures 230,174 233,186 3,012
Deficiency of revenues under expenditures (78,837) (76,784) (2,053)
Other financing sources
Transfers in 73,998 76,784 (2,786)
Total other financing sources 73,998 76,784 (2,786)
Net change in fund balances (4,839) - (4,839)
Fund balance -beginning 31,450 31,450 -
Fund balance - ending $ 26,611 $ 31,450 $ (4,839)
E-7
CITY OF OAK RIDGE, TENNESSEE
EXTENDED SCHOOL PROGRAM FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended )une 30, 2022
Actual on Variance
Budgetary Positive
Basis Budget (Negative)
Revenues
Charges for services $ 371,372 $ 362,340 $ 9,032
Total revenues 371,372 362,340 9,032
Expenditures
Education 311,837 352,340 40,503
Total expenditures 311,837 352,340 40,503
Excess of revenues over expenditures 59,535 10,000 49,535
Other financing sources (uses)
Transfers out (10,000) (10,000) -
Total other financing sources (uses) (10,000) (10,000) -
Net change in fund balances 49,535 - 49,535
Fund balance - beginning 98,303 98,303 -
Fund balance - ending $ 147,838 $ 98,303 $ 49,535
E-8
CITY OF OAK RIDGE, TENNESSEE
CENTRAL CAFETERIA FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended )une 30, 2022
Actual on Variance
Budgetary Positive
Basis Budget (Negative)
Revenues
Charges for services $ 170,138 $ 193,648 $ (23,510)
Intergovernmental 3,263,735 2,331,250 932,485
Miscellaneous 2,ll5 3,600 (1,485)
Total revenues 3,435,988 2,528,498 907,490
Expenditures
Education 2,574,210 2,678,498 104,288
Total expenditures 2,574,210 2,678,498 104,288
Excess (deficiency) of revenues
over(under) expenditures 861,778 (150,000) 1,011,778
Fund balance -beginning 1,064,016 1,064,016 -
Fund balance - ending $ 1,925,794 $ 914,016 $ 1,011,778
E-9
CITY OF OAK RIDGE, TENNESSEE
EMERGENCY COMMUNICATIONS DISTRICT FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended )une 30, 2022
Actual on Variance
Budgetary Positive
Basis Budget (Ne�ative)
Revenues
State emergency communications board operational funding $ 525,054 $ 525,054 $ -
TECB-surcharge subsidy distribution 197,628 - 197,628
TECB-distribution of excess revenue 45,070 - 45,070
Total revenues 767,752 525,054 242,698
Expenses
Dues and subscriptions 1,354 3,000 1,646
Licenses and fees 8,025 5,000 (3,025)
Contracted dispatcher services 200,000 200,000 -
Contracts/TVRS 20,958 45,000 24,042
Utilities-electric 3,393 5,000 1,607
Utilities-gas 109 5,000 4,891
General telephone 911 support lines - 550 550
Address/mapping expenses 31,782 47,500 15,718
Other consultants - 4,000 4,000
Date processing services 4,723 4,000 (723)
Other communications - 4,000 4,000
Service provider fees/code red 14,784 15,000 216
Training - 8,000 8,000
Maintenance contract 21,271 25,000 3,729
Maintenance/repair-communication equipment 3,599 15,000 11,401
Small equipment purchases 2,451 10,000 7,549
Geographic information system - 5,000 5,000
Date processing supplies 10,495 1,500 (8,995)
Insurance-surety bonds 890 890 -
Depreciation 391,061 378,875 (12,186)
Total expenses 714,895 782,315 67,420
Operating income(loss) 52,857 (257,261) 310,118
Nonoperating revenues(expenses)
State grant 16,000 - 16,000
Interest income 3,576 14,500 (10,924)
Interest expense (34,830) (55,030) 20,200
Net nonoperating(expenses)revenues (15,254) (40,530) 25,276
Change in net position 37,603 (297,791) 335,394
Net position-beginning 2,419,778 2,419,778 -
Netposition-ending $ 2,457,381 $ 2,121,987 $ 335,394
E-10
CITY OF OAK RIDGE, TENNESSEE
Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the government and to other government
units, on a cost reimbursement basis.
City Insurance Fund: This fund is used to account for contributions from operating funds and the
related payments and accruals for dental, property and liability claims, other than those related to
the schools. This fund receives the employee's and the City's contribution for the payment of the
employee's medical premiums. School property and liability claims and the School's contribution
toward employee medical benefits are accounted for in the General Purpose School Fund.
City Equipment Replacement Rental Fund: This fund is used to account for the assets used in
providing a pool of equipment for use by all City departments. Rents charged to the various
departments are used to fund replacement of the equipment.
E-11
CITY OF OAK RIDGE, TENNESSEE
COMBINING STATEMENTS OF NET POSITION
INTERNAL SERVICE FUNDS
7une 30, 2022
city
Equipment
Insurance Replacement Total
Assets
Current assets:
Cash and cash equivalents $ 2,087,878 $ 3,253,502 $ 5,341,380
Prepaid items - 222,786 222,786
Inventories, at cost - 11,959 11,959
Total current assets 2,087,878 3,488,247 5,576,125
Noncurrent assets:
Capital assets,net - 4,362,240 4,362,240
Net pension asset - 76,050 76,050
Total noncurrent assets - 4,438,290 4,438,290
Total assets 2,087,878 7,926,537 10,014,415
Deferred outflows of resources
Deferred pension outflows - 222,422 222,422
Deferred other postemployment benefit outflows - 15,180 15,180
Total deferred outflows of resources - 237,602 237,602
Liabilities
Current liabilities:
Accounts payable 54,899 140,547 195,446
Accrued liabilities 269,943 6,718 276,661
Current parrion of noncurrent liabilities - 287,130 287,130
Accrued interest payable - 10,046 10,046
Total current liabilities 324,842 444,441 769,283
Noncurrent liabilities:
Bonds payable - 655,426 655,426
Lease payable - 277,707 277,707
Total other postemployment benefit liability - 89,021 89,021
Total noncurrent liabilities - 1,022,154 1,022,154
Total liabilities 324,842 1,466,595 1,791,437
Deferred inflows of resources
Deferred pension inflows - 312,468 312,468
Deferred other postemployment benefit inflows - 46,691 46,691
Totaldeferredinflowsofresources - 359,159 359,159
Net position
Net investment in capital assets - 3,230,271 3,230,271
Unrestricted 1,763,036 3,108,ll4 4,871,150
Total net position $ 1,763,036 $ 6,338,385 $ 8,101,421
E-12
CITY OF OAK RIDGE, TENNESSEE
COMBINING STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended )une 30, 2022
City
Equipment
Insurance Replacement Total
Operating revenues:
Charges for services $ 4,775,867 $ 2,823,850 $ 7,599,717
Employer's contributions 3,952,080 - 3,952,080
Employees' contributions 946,573 - 946,573
Total operating revenues 9,674,520 2,823,850 12,498,370
Operating expenses:
Maintenance and administrative - 1,633,888 1,633,888
Depreciation - 732,528 732,528
Materials - 511,295 511,295
Medical/liability claims 470,836 - 470,836
Insurance premiums 5,422,142 - 5,422,142
Other benefits 3,885,092 - 3,885,092
Total operating expenses 9,778,070 2,877,711 12,655,781
Operating loss (103,550) (53,861) (157,411)
Nonoperating revenues (expenses):
Gain on disposal of capital assets - 13,978 13,978
Investment earnings 4,729 7,057 11,786
Interest expense - (33,365) (33,365)
Net nonoperating revenue (expense) 4,729 (12,330) (7,601)
Change in net position (98,821) (66,191) (165,012)
Net position - beginning 1,861,857 6,404,576 8,266,433
Net position - ending $ 1,763,036 $ 6,338,385 $ 8,101,421
E-13
CITY OF OAK RIDGE, TENNESSEE
COMBINING STATEMENTS OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended 7une 30, 2022
City
Equipment
Insurance Replacement Total
Cash flows from operating activities
Receipts from interfund charges $ 9,674,520 $ 2,823,850 $ 12,498,370
Payments to employees for salaries and benefits - (612,574) (612,574)
Payments to suppliers and providers (9,945,853) (1,592,827) (11,538,680)
Net cash (used in)provided by operating activities (271,333) 618,449 347,116
Cash flows from capital and related financing activities
Proceeds from the sale of capital assets - 25,550 25,550
Acquisition and construction of capital assets - (667,332) (667,332)
Payments on capital lease - (83,697) (83,697)
Principal paid on long-term debt - (100,000) (100,000)
Interest paid on long-term debt - (47,851) (47,851)
Net cash used in capital and related financing activities - (873,330) (873,330)
Cash flows from investing activities
Interest on investments 4,729 7,057 11,786
Net cash provided by investing activities 4,729 7,057 11,786
Net decrease in cash and cash equivalents (266,604) (247,824) (514,428)
Cash and cash equivalents -beginning 2,354,482 3,501,326 5,855,808
Cash and cash equivalents - ending $ 2,087,878 $ 3,253,502 $ 5,341,380
E-14
CITY OF OAK RIDGE, TENNESSEE
COMBINING STATEMENTS OF CASH FLOWS (continued)
INTERNAL SERVICE FUNDS
For the Year Ended 7une 30, 2022
City
Equipment
Insurance Replacement Total
Reconciliation of operating loss to net cash
(used in)provided by operating activities
Operating loss $ (103,550) $ (53,861) $ (157,411)
Adjustments to reconcile operating loss to net cash
(used in)provided by operating activities:
Depreciation and amortization - 732,528 732,528
Change in assets and liabilities
Prepaid items - (88,622) (88,622)
Inventories, at cost - 257 257
Deferred outflows - (135,ll5) (135,ll5)
Accounts payable 7,424 78,415 85,839
Accrued liabilities (175,207) 1,850 (173,357)
Compensated absences - 7,171 7,171
Total other postemployment benefits liability - (805) (805)
Net pension liability - (234,292) (234,292)
Deferred inflows - 310,923 310,923
Total adjustments (167,783) 672,310 504,527
Net cash (used in)provided by operating activities $ (271,333) $ 618,449 $ 347,116
E-15
CITY OF OAK RIDGE, TENNESSEE
GENERAL FUND
SCHEDULE OF REVENUES
For the Year Ended 7une 30, 2022
Actual Variance with
on Final Budget
Budgetary Positive
Basis Budget (Negative)
Taxes:
Property taxes:
Real property $ 20,278,674 $ 19,982,000 $ 296,674
Personal property 1,539,083 1,632,000 (92,917)
Public utilities 231,292 213,800 17,492
Interest and penalties 356,606 225,000 131,606
Other property taxes:
Other than assessed(in-lieu) 168,259 170,000 (1,741)
Other taxes:
Beer wholesale 683,567 635,000 48,567
Liquor wholesale 388,127 355,000 33,127
Room occupancy 825,914 500,000 325,914
Business 1,123,156 885,000 238,156
City sales tax 612,146 523,805 88,341
Total taxes 26,206,824 25,121,605 1,085,219
Licenses and permits:
Beer and liquor licenses and permits 9,132 13,325 (4,193)
Building permits 384,838 265,000 119,838
Review fee 1,107 30,000 (28,893)
Electrical permits 61,175 45,000 16,175
Plumbing permits 33,342 35,000 (1,658)
Mechanicalpermits 30,158 24,000 6,158
Animal registration permits 25,082 20,000 5,082
Other permits and fees 24,174 15,000 9,174
Total licenses and permits 569,008 447,325 121,683
E-16
CITY OF OAK RIDGE, TENNESSEE
GENERAL FUND
SCHEDULE OF REVENUES (continued)
For the Year Ended 7une 30, 2022
Actual Variance with
on Final Budget
Budgetary Positive
Basis Budget (Negative)
Intergovernmental:
State shared:
TVA replacement tax $ 329,321 $ 340,000 $ (10,679)
Sales tax 3,621,682 2,900,000 721,682
Income tax 5,930 - 5,930
Excise tax 76,809 50,000 26,809
Sports betting 31,578 20,000 11,578
Beer barrelage 14,344 13,800 544
Mixed drink tax 199,516 125,000 74,516
Fuel tax inspection fees 57,620 58,230 (610)
Miscellanous 1,653 - 1,653
County shared:
Sales tax - Anderson County 11,172,206 8,100,000 3,072,206
Sales tax - Roane County 3,045,308 2,592,860 452,448
U.S. Department of Energy:
Federal grant 312,896 313,000 (104)
West End- ambulance 567,360 1,006,441 (439,081)
In-lieu of taxes 1,694,737 1,650,000 44,737
Total intergovernmental 21,130,960 17,169,331 3,961,629
Charges for services:
Charges for current services:
Records processing 1,466 9,000 (7,534)
General and administrative costs 15,495 16,000 (505)
Animal shelter fees 10,962 20,000 (9,038)
Use of property services:
Rental of lands and buildings 172,412 156,000 16,412
Central service center complex 815,114 815,113 1
Community center building 12,411 18,000 (5,589)
Recreation activities:
Activities 6,715 3,500 3,215
Outdoor pool 131,754 90,000 41,754
Indoor pool 56,754 45,000 11,754
E-17
CITY OF OAK RIDGE, TENNESSEE
GENERAL FUND
SCHEDULE OF REVENUES (continued)
For the Year Ended ]une 30, 2022
Actual Variance with
on Final Budget
Budgetary Positive
Basis Budget (Negative)
Charges for services (continued):
Golf course:
Green fees $ 426,301 $ 395,600 $ 30,701
Memberships 83,452 55,000 28,452
Golf cart fees 296,663 220,000 76,663
Pro shop sales 106,901 80,000 26,901
Food&beverage sales 377 80,000 (79,623)
Driving range 58,408 42,250 16,158
Golf miscellaneous 1,050 5,000 (3,950)
Golf facility rentals 20,019 10,800 9,219
Total charges for services 2,216,254 2,061,263 154,991
Fines and forfeitures:
City court fines 92,926 65,000 27,926
City court costs 174,349 110,000 64,349
City litigation tax 28,311 18,000 10,311
Bail forfeitures 166,650 110,000 56,650
Miscellaneous court revenues 17,814 10,000 7,814
Library fines and lost books 16,284 19,000 (2,716)
Total fines and forfeitures 496,334 332,000 164,334
Grants:
DOE grants 286,286 280,000 6,286
DOE grants - West End firefighting 865,737 1,298,165 (432,428)
DOJ grants (2,893) 18,460 (21,353)
HUD grants - CDBG 73,732 594,535 (520,803)
FEMA grants 14,791 197,460 (182,669)
ARPA grant 383,993 - 383,993
Other federal grants 93,019 - 93,019
E-18
CITY OF OAK RIDGE, TENNESSEE
GENERAL FUND
SCHEDULE OF REVENUES (continued)
For the Year Ended 7une 30, 2022
Actual Variance with
on Final Budget
Budgetary Positive
Basis Budget (Negative)
Grants (continued):
TDEC grants $ 102,592 $ 199,055 $ (96,463)
TEMA grants 32,450 16,000 16,450
TDOT grants 111,152 156,565 (45,413)
TSLA grants 8,471 7,400 1,071
THDA grants 19,767 - 19,767
Other state grants 195,310 956,380 (761,070)
Total grants 2,184,407 3,724,020 (1,539,613)
Investment earnings 59,064 75,000 (15,936)
Miscellaneous revenue:
CATV franchise 436,585 445,000 (8,415)
Right-of-way 114,294 72,500 41,794
Miscellaneous 55,424 20,000 35,424
Total miscellaneous revenue 606,303 537,500 68,803
Total revenues $ 53,469,154 $ 49,468,044 $ 4,001,110
E-19
CITY OF OAK RIDGE, TENNESSEE
GENERAL FUND
SCHEDULE OF EXPENDITURES BY FUNCTION
For the Year Ended 7une 30, 2022
Variance with
Actual on Final Budget
Budgetary Positive
Basis Budget (Negative)
General government:
City council $ 99,444 $ 128,496 $ 29,052
City clerk 118,526 137,293 18,767
City manager 438,603 457,314 18,711
City court 224,465 227,433 2,968
Legal 267,552 299,942 32,390
Information services 475,146 487,432 12,286
Personnel 324,978 332,264 7,286
Stationery stares 79,630 105,446 25,816
Finance 334,160 339,163 5,003
Business office 83,228 102,220 18,992
Total general government 2,445,732 2,617,003 171,271
Public safety:
Police:
Supervision 279,003 350,322 71,319
Investigations 1,004,814 968,257 (36,557)
Staff services 841,180 848,256 7,076
Patrol 4,072,943 4,064,944 (7,999)
Emergency communications 424,485 430,298 5,813
Animal control 450,701 451,125 424
School resource officer program 242,666 272,667 30,001
Total police 7,315,792 7,385,869 70,077
Fire:
Supervision 280,831 252,585 (28,246)
Fire prevention 218,095 220,671 2,576
Fire fighting 6,259,665 6,736,106 476,441
Fire stations 261,194 267,932 6,738
Total fire 7,019,785 7,477,294 457,509
Total public safety 14,335,577 14,863,163 527,586
E-20
CITY OF OAK RIDGE, TENNESSEE
GENERAL FUND
SCHEDULE OF EXPENDITURES BY FUNCTION (continued)
For the Year Ended 7une 30, 2022
Variance with
Actual on Final Budget
Budgetary Positive
Basis Budget (Negative)
Public works:
Supervision $ 67,935 $ 78,430 $ 10,495
Engineering 232,709 282,057 49,348
State highway maintenance 54,670 101,110 46,440
General maintenance 432,361 401,933 (30,428)
Central service center 197,067 164,039 (33,028)
Municipal building 173,910 187,793 13,883
Stormwater 67,163 195,000 127,83 7
Traffic control and lights 1,375,330 1,340,000 (35,330)
Total public works 2,601,145 2,750,362 149,217
Community services:
Community development:
Supervision 176,999 203,412 26,413
Planning 128,231 125,518 (2,713)
Code enforcement 477,390 489,824 12,434
Housing initiatives 64,078 132,500 68,422
Economic development 29,641 35,730 6,089
Marketing and tourism 401,982 411,164 9,182
Special events 82,859 110,000 27,141
Total community development 1,361,180 1,508,148 146,968
Recreation:
Supervision 237,572 244,992 7,420
Golf course 1,046,327 1,142,459 96,132
Indoor aquatics 197,647 212,334 14,687
Outdoor aquatics 336,015 334,470 (1,545)
Centers, camps and programs 616,047 742,898 126,851
Athletics 170,338 166,733 (3,605)
Parks 1,115,777 1,201,435 85,658
Scarboro center 261,235 228,888 (32,347)
Senior center 257,708 278,114 20,406
Total recreation 4,238,666 4,552,323 313,657
E-21
CITY OF OAK RIDGE, TENNESSEE
GENERAL FUND
SCHEDULE OF EXPENDITURES BY FUNCTION (continued)
For the Year Ended 7une 30, 2022
Variance with
Actual on Final Budget
Budgetary Positive
Basis Budget (Negative)
Community services (continued):
Public library $ 1,435,758 $ 1,442,160 $ 6,402
Total community services 7,035,604 7,502,631 467,027
Grants:
City social services grants 153,316 198,165 44,849
General government grants 681,895 1,136,235 454,340
Police grants 395,347 348,460 (46,887)
Fire grants 32,907 235,395 202,488
Library grants 17,898 14,800 (3,098)
Community services grants 19,767 32,000 12,233
Community development block grants 73,733 594,535 520,802
Street and public transportation grants 184,420 213,125 28,705
Total grants 1,559,283 2,772,715 1,213,432
Total expenditures $ 27,977,341 $ 30,505,874 $ 2,528,533
E-22
CITY OF OAK RIDGE, TENNESSEE
CAPITAL PRO7ECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended )une 30, 2022
Actual on Variance
Budgetary Positive
Basis Budget (Negative)
Revenues
Intergovernmental $ 1,716,002 $ 23,546,539 $ (21,830,537)
Miscellanous 785 124,405 (123,620)
Interest 26,215 20,000 6,215
Total revenues 1,743,002 23,690,944 (21,947,942)
Expenditures
Capital outlay 10,464,334 36,816,832 26,352,498
Bond issuance costs 121,481 - (121,481)
Total expenditures 10,585,815 36,816,832 26,231,017
(Deficiency) excess of revenues
(under) over expenditures (8,842,813) (13,125,888) 4,283,075
Other financing sources
Transfers in 2,139,329 2,500,000 (360,671)
Long-term debt proceeds 8,646,481 8,580,000 66,481
Total other financing sources 10,785,810 11,080,000 (294,190)
Net change in fund balance 1,942,997 (2,045,888) 3,988,885
Fundbalance -beginning 6,530,112 6,530,112 -
Fund balance - ending $ 8,473,109 $ 4,484,224 $ 3,988,885
E-23
CITY OF OAK RIDGE, TENNESSEE
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended )une 30, 2022
Actual on Variance
Budgetary Positive
Basis Budget (Negative)
Revenues
Taxes $ 3,398,207 $ 2,440,000 $ 958,207
Interest 21,145 20,000 1,145
Total revenues 3,419,352 2,460,000 959,352
Expenditures
Current debt service:
Principal 5,543,276 5,388,278 (154,998)
Interest 2,675,088 3,393,605 718,517
Contingency (future debt, refunding costs) - 700,000 700,000
Total expenditures 8,218,364 9,481,883 1,263,519
(Deficiency) excess of revenues
(under) over expenditures (4,799,012) (7,021,883) 2,222,871
Other financing sources
Transfers in 5,607,205 5,607,205 -
Debt proceeds - 700,000 (700,000)
Total other financing sources 5,607,205 6,307,205 (700,000)
Net change in fund balance 808,193 (714,678) 1,522,871
Fund balance - beginning 8,773,102 8,773,102 -
Fund balance - ending $ 9,581,295 $ 8,058,424 $ 1,522,871
E-24
CITY OF OAK RIDGE, TENNESSEE
SCHOOL FEDERAL PRO]ECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended )une 30, 2022
Actual on Variance
Budgetary Positive
Basis Budget (Negative)
Revenues
Intergovernmental $ 11,622,021 $ 16,930,529 $ (5,308,508)
Total revenues 11,622,021 16,930,529 (5,308,508)
Expenditures
Education 11,300,092 16,359,692 5,059,600
Total expenditures 11,300,092 16,359,692 5,059,600
Excess (deficiency) of revenues
over(under) expenditures 321,929 570,837 (248,908)
Other financing sources (uses)
Transfers out (321,929) (570,837) 248,908
Total other financing sources (uses) (321,929) (570,837) 248,908
Net change in fund balances - - -
Fund balance - beginning - - -
Fund balance - ending $ - $ - $ -
E-25
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF WATER TREATMENT PLANT
OPERATIONAL EXPENSES AND CAPITAL EXPENDITURES
For the Year Ended 7une 30, 2022
Operational expenses:
Salaries and benefits $ 895,006
Utilities 990,982
Depreciation 1,074,321
Chemicals and supplies 436,183
Maintenance and other 689,733
Insurance and taxes 179,129
Total operational expenses $ 4,265,354
Capital expenditures $ 117,579
E-26
CITY OF OAK RIDGE, TENNESSEE
GENERAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - GOVERNMENTAL ACTIVITIES
7une 30, 2022
General Obligation Bonds General Obligation Bonds General Obligation Bonds General Obligation Bonds
Series 2017 Series 2018 Series 2019 Series 2020A
Fiscal
Year Principal (1) Interest Principal Interest Principal Interest Principal Interest
2023 $ 625,000 $ 242,412 $ 395,000 $ 508,044 $ 215,000 $ 428,081 $ - $ 191,250
2024 660,000 211,162 415,000 488,294 225,000 417,331 - 191,250
2025 690,000 178,162 440,000 467,544 705,000 406,081 - 191,250
2026 720,000 143,662 460,000 445,544 815,000 370,831 - 191,250
2027 745,000 114,862 485,000 422,544 715,000 330,081 - 191,250
2028 775,000 98,100 505,000 398,294 1,385,000 294,331 1,125,000 191,250
2029 470,000 74,850 520,000 383,144 1,345,000 225,081 1,125,000 135,000
2030 485,000 60,750 540,000 367,544 1,380,000 171,281 1,125,000 78,750
2031 500,000 46,200 560,000 345,944 1,185,000 129,881 1,125,000 67,500
2032 515,000 31,200 580,000 323,544 310,000 106,181 1,125,000 56,250
2033 525,000 15,750 600,000 304,694 320,000 99,981 1,125,000 43,875
2034 - - 625,000 280,694 1,225,000 93,581 1,125,000 30,375
2035 - - 645,000 259,600 1,245,000 69,081 1,125,000 15,750
2036 - - 670,000 233,800 1,270,000 42,625 - -
2037 - - 695,000 210,350 345,000 15,638 - -
2038 - - 720,000 182,550 350,000 7,875 - -
2039 - - 750,000 153,750 - - - -
2040 - - 780,000 123,750 - - - -
2041 - - 810,000 94,500 - - - -
2042 - - 840,000 64,124 - - - -
2043 - - 870,000 32,624 - - - -
Total $ 6,710,000 $ 1,217,110 $ 12,905,000 $ 6,090,876 $ 13,035,000 $ 3,207,941 $ 9,000,000 $ 1,575,000
(1) The General Obligation Bonds Series 2017 includes $695,000 principal balance reported in the Equipment Replacement Rental Fund (internal
service fund).
E-27
CITY OF OAK RIDGE, TENNESSEE
GENERAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - GOVERNMENTAL ACTIVITIES (continued)
7une 30, 2022
General Obligation Bonds General Obligation Bonds General Obligation Bonds
Series 2020B Series 2021A Series 2021C Total
Fiscal Total
Year Principal Interest Principal Interest Principal Interest Principal Interest Requirements
2023 $ 100,000 $ 29,150 $ 2,650,000 $ 939,400 $ 300,000 $ 210,045 $ 4,285,000 $ 2,548,382 $ 6,833,382
2024 100,000 28,650 2,850,000 806,900 310,000 198,045 4,560,000 2,341,632 6,901,632
2025 100,000 28,050 1,700,000 664,400 320,000 185,645 3,955,000 2,121,132 6,076,132
2026 1,185,000 27,350 250,000 579,400 335,000 172,845 3,765,000 1,930,882 5,695,882
2027 1,550,000 15,500 200,000 566,900 350,000 159,445 4,045,000 1,800,582 5,845,582
2028 - - 1,550,000 556,900 360,000 145,445 5,700,000 1,684,320 7,384,320
2029 - - 2,150,000 479,400 375,000 131,045 5,985,000 1,428,520 7,413,520
2030 - - 2,200,000 371,900 395,000 116,045 6,125,000 1,166,270 7,291,270
2031 - - 2,300,000 261,900 410,000 100,245 6,080,000 951,670 7,031,670
2032 - - 3,150,000 192,900 420,000 87,945 6,100,000 798,020 6,898,020
2033 - - 2,900,000 129,900 430,000 77,445 5,900,000 671,645 6,571,645
2034 - - 2,300,000 71,900 440,000 71,640 5,715,000 548,190 6,263,190
2035 - - 1,295,000 25,900 440,000 65,700 4,750,000 436,031 5,186,031
2036 - - - - 455,000 56,900 2,395,000 333,325 2,728,325
2037 - - - - 460,000 47,800 1,500,000 273,788 1,773,788
2038 - - - - 470,000 38,600 1,540,000 229,025 1,769,025
2039 - - - - 475,000 29,200 1,225,000 182,950 1,407,950
2040 - - - - 490,000 19,700 1,270,000 143,450 1,413,450
2041 - - - - 495,000 9,900 1,305,000 104,400 1,409,400
2042 - - - - - - 840,000 64,124 904,124
2043 - - - - - - 870,000 32,624 902,624
Total $ 3,035,000 $ 128,700 $ 25,495,000 $ 5,647,700 $ 7,730,000 $ 1,923,635 $ 77,910,000 $ 19,790,962 $ 97,700,962
E-28
CITY OF OAK RIDGE, TENNESSEE
NOTE PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - GOVERNMENTAL ACTIVITIES
7une 30, 2022
TMBF Energy Efficient
Series 2008 (1) Schools Initiative Total
Fiscal Total
Year Principal Interest/Fees Principal Interest/Fees Principal Interest/Fees Requirements
2023 $ 1,100,000 $ 100,550 $ 245,724 $ 23,244 $ 1,345,724 $ 123,794 $ 1,469,518
2024 775,000 85,049 248,196 20,772 1,023,196 105,821 1,129,017
2025 1,555,000 72,930 250,692 18,276 1,805,692 91,206 1,896,898
2026 1,905,000 50,055 253,212 15,756 2,158,212 65,811 2,224,023
2027 1,717,288 22,764 255,756 13,212 1,973,044 35,976 2,009,020
2028 - - 258,324 10,644 258,324 10,644 268,968
2029 - - 260,916 8,052 260,916 8,052 268,968
2030 - - 263,532 5,436 263,532 5,436 268,968
2031 - - 266,184 2,784 266,184 2,784 268,968
2032 - - 134,098 407 134,098 407 134,505
Total $ 7,052,288 $ 331,348 $ 2,436,634 $ 118,583 $ 9,488,922 $ 449,931 $ 9,938,853
(1) The interest rate varies on a weekly basis for the TMBF loan. The amortization schedule is based on the interest rate of 1.44% in
effect on June 30, 2022.
E-29
CITY OF OAK RIDGE, TENNESSEE
BOND PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - ELECTRIC FUND
]une 30, 2022
General Obligation Bonds General Obligation Bonds General Obligation Bonds
Series 2017 Series 2019 Series 2021A
Fiscal
Year Principal Interest Principal Interest Principal Interest
2023 $ 805,000 $ 199,737 $ 5,000 $ 126,381 $ 155,000 $ 33,250
2024 555,000 159,487 5,000 126,131 165,000 25,500
2025 580,000 131,737 5,000 125,881 170,000 17,250
2026 580,000 102,737 5,000 125,631 175,000 8,750
2027 835,000 79,537 5,000 125,381 - -
2028 750,000 60,750 400,000 125,131 - -
2029 620,000 38,250 500,000 105,131 - -
2030 655,000 19,650 450,000 85,131 - -
2031 - - 455,000 71,631 - -
2032 - - 445,000 62,531 - -
2033 - - 435,000 53,631 - -
2034 - - 425,000 44,931 - -
2035 - - 415,000 36,431 - -
2036 - - 410,000 27,613 - -
2037 - - 425,000 18,900 - -
2038 - - 415,000 9,338 - -
2039 - - - - - -
2040 - - - - - -
2041 - - - - - -
Total $ 5,380,000 $ 791,885 $ 4,800,000 $ 1,269,804 $ 665,000 $ 84,750
E-30
CITY OF OAK RIDGE, TENNESSEE
BOND PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - ELECTRIC FUND (continued)
]une 30, 2022
General Obligation Bonds
Series 2021C Total
Fiscal Total
Year Principal Interest Principal Interest Requirements
2023 $ 35,000 $ 24,500 $ 1,000,000 $ 383,868 $ 1,383,868
2024 35,000 23,100 760,000 334,218 1,094,218
2025 40,000 21,700 795,000 296,568 1,091,568
2026 40,000 20,100 800,000 257,218 1,057,218
2027 40,000 18,500 880,000 223,418 1,103,418
2028 40,000 16,900 1,190,000 202,781 1,392,781
2029 45,000 15,300 1,165,000 158,681 1,323,681
2030 45,000 13,500 1,150,000 118,281 1,268,281
2031 50,000 11,700 505,000 83,331 588,331
2032 50,000 10,200 495,000 72,731 567,731
2033 50,000 8,950 485,000 62,581 547,581
2034 50,000 8,275 475,000 53,206 528,206
2035 50,000 7,600 465,000 44,031 509,031
2036 50,000 6,600 460,000 34,213 494,213
2037 55,000 5,600 480,000 24,500 504,500
2038 55,000 4,500 470,000 13,838 483,838
2039 55,000 3,400 55,000 3,400 58,400
2040 55,000 2,300 55,000 2,300 57,300
2041 60,000 1,200 60,000 1,200 61,200
Total $ 900,000 $ 223,925 $ 11,745,000 $ 2,370,364 $ 14,115,364
E-31
CITY OF OAK RIDGE, TENNESSEE
BOND PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - WATERWORKS FUND
7une 30, 2022
General Obligation Bonds General Obligation Bonds General Obligation Bonds
Series 2013 Series 2017 Series 2019
Fiscal
Year Principal Interest Principal Interest Principal Interest
2023 $ 375,000 $ 561,050 $ 105,000 $ 27,750 $ 480,000 $ 184,200
2024 285,000 546,050 110,000 22,500 240,000 160,200
2025 290,000 537,500 115,000 17,000 325,000 148,200
2026 305,000 528,800 120,000 11,250 275,000 131,950
2027 215,000 518,888 120,000 6,450 490,000 118,200
2028 825,000 510,288 125,000 3,750 765,000 93,700
2029 1,815,000 481,413 - - 775,000 55,450
2030 1,890,000 408,813 - - 815,000 24,450
2031 1,910,000 333,212 - - - -
2032 1,990,000 256,812 - - - -
2033 2,075,000 169,750 - - - -
2034 1,805,000 78,968 - - - -
Total $ 13,780,000 $ 4,931,544 $ 695,000 $ 88,700 $ 4,165,000 $ 916,350
E-32
CITY OF OAK RIDGE, TENNESSEE
BOND PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - WATERWORKS FUND (continued)
]une 30, 2022
General Obligation Bonds
Series 2021A Total
Fiscal Total
Year Principal Interest Principal Interest Requirements
2023 $ 1,580,000 $ 604,350 $ 2,540,000 $ 1,377,350 $ 3,917,350
2024 1,950,000 525,350 2,585,000 1,254,100 3,839,100
2025 1,905,000 427,850 2,635,000 1,130,550 3,765,550
2026 1,955,000 332,600 2,655,000 1,004,600 3,659,600
2027 1,955,000 234,850 2,780,000 878,388 3,658,388
2028 1,430,000 137,100 3,145,000 744,838 3,889,838
2029 340,000 65,600 2,930,000 602,463 3,532,463
2030 350,000 48,600 3,055,000 481,863 3,536,863
2031 580,000 31,100 2,490,000 364,312 2,854,312
2032 345,000 13,700 2,335,000 270,512 2,605,512
2033 340,000 6,800 2,415,000 176,550 2,591,550
2034 - - 1,805,000 78,968 1,883,968
Total $ 12,730,000 $ 2,427,900 $ 31,370,000 $ 8,364,494 $ 39,734,494
E-33
CITY OF OAK RIDGE, TENNESSEE
BOND PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - EMERGENCY COMMUNICATIONS DISTRICT FUND
7une 30, 2022
General Obligation Bonds
Series 2017
Fiscal Total
Year Principal Interest Requirements
2023 $ 175,000 $ 47,238 $ 222,238
2024 185,000 38,487 223,487
2025 195,000 29,238 224,238
2026 205,000 19,487 224,487
2027 215,000 11,288 226,288
2028 215,000 6,450 221,450
Total $ 1,190,000 $ 152,188 $ 1,342,188
E-34
CITY OF OAK RIDGE, TENNESSEE
NOTE PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - ELECTRIC FUND
7une 30, 2022
TMBF
Series 2008 (1)
Fiscal Total
Year Principal Interest/Fees Requirements
2023 $ - $ 18,535 $ 18,535
2024 290,000 18,190 308,190
2025 305,000 13,984 318,984
2026 355,000 9,520 364,520
2027 333,296 4,418 337,714
Total $ 1,283,296 $ 64,647 $ 1,347,943
�1� The interest rate varies on a weekly basis for the
TMBF loan. The amortization schedule is based on
the interest rate of 1.44% in effect on June 30,
2022.
E-35
CITY OF OAK RIDGE, TENNESSEE
NOTE PRINCIPAL AND INTEREST
REQUIREMENTS BY FISCAL YEAR - WATERWORKS FUND
7une 30, 2022
TMBF 2013-324 2013-325 2014-337
Series 2008 (1) State Revolving Fund Loan State Revolving Fund Loan State Revolving Fund Loan
Fiscal
Year Principal Interest/Fees Principal Interest/Fees Principal Interest/Fees Principal Interest/Fees
2023 $ 160,000 $ 20,816 $ 170,568 $ 32,580 $ 604,644 $ 111,084 $ 125,316 $ 35,064
2024 295,000 18,345 172,548 30,456 611,628 103,620 127,500 32,784
2025 315,000 14,061 174,540 28,332 618,696 96,060 129,732 30,444
2026 335,000 9,487 176,556 26,172 625,848 88,404 131,988 28,080
2027 349,416 4,632 178,596 23,988 633,084 80,664 134,292 25,680
2028 - - 180,660 21,780 640,416 72,828 136,632 23,232
2029 - - 182,748 19,548 647,808 64,920 139,020 20,724
2030 - - 184,860 17,292 655,296 56,904 141,444 18,192
2031 - - 186,996 15,000 662,880 48,792 143,904 15,624
2032 - - 189,168 12,684 670,536 40,608 146,412 12,996
2033 - - 191,352 10,344 678,288 32,316 148,968 10,320
2034 - - 193,560 7,980 686,136 23,928 151,572 7,596
2035 - - 195,804 5,580 694,068 15,444 154,212 4,836
2036 - - 198,060 3,168 702,084 6,864 156,900 2,016
2037 - - 149,993 769 176,692 312 26,546 43
2038 - - - - - - - -
2039 - - - - - - - -
2040 - - - - - - - -
2041 - - - - - - - -
Total $ 1,454,416 $ 67,341 $ 2,726,009 $ 255,673 $ 9,308,104 $ 842,748 $ 1,994,438 $ 267,631
(1) The interest rate varies on a weekly basis for the TMBF loans. The amortization schedules are based on the interest rate in effect on June 30, 2022
of 1.44%for theTMBF Series 2008.
E-36
CITY OF OAK RIDGE, TENNESSEE
NOTE PRINCIPAL AND INTEREST
REQUIREMENTS BY FISCAL YEAR - WATERWORKS FUND (continued)
]une 30, 2022
2017-356 2017-396
State Revolving Fund Loan State Revolving Fund Loan Total
Fiscal Total
Year Principal Interest/Fees Principal Interest/Fees Principal Interest/Fees Requirements
2023 $ 76,668 $ 32,100 $ 105,036 $ 35,040 $ 1,242,232 $ 266,684 $ 1,508,916
2024 78,132 30,564 106,824 33,168 1,391,632 248,937 1,640,569
2025 79,620 29,016 108,648 31,260 1,426,236 229,173 1,655,409
2026 81,144 27,432 110,496 29,316 1,461,032 208,891 1,669,923
2027 82,692 25,812 112,368 27,360 1,490,448 188,136 1,678,584
2028 84,264 24,180 114,288 25,344 1,156,260 167,364 1,323,624
2029 85,872 22,500 116,232 23,316 1,171,680 151,008 1,322,688
2030 87,504 20,796 118,212 21,240 1,187,316 134,424 1,321,740
2031 89,172 19,056 120,228 19,128 1,203,180 117,600 1,320,780
2032 90,876 17,280 122,280 16,980 1,219,272 100,548 1,319,820
2033 92,604 15,480 124,356 14,808 1,235,568 83,268 1,318,836
2034 94,380 13,632 126,480 12,576 1,252,128 65,712 1,317,840
2035 96,168 11,772 128,628 10,332 1,268,880 47,964 1,316,844
2036 98,004 9,852 130,824 8,028 1,285,872 29,928 1,315,800
2037 99,876 7,908 133,044 5,700 586,151 14,732 600,883
2038 101,784 5,916 135,312 3,336 237,096 9,252 246,348
2039 103,716 3,900 114,531 935 218,247 4,835 223,082
2040 105,696 1,836 - - 105,696 1,836 107,532
2041 35,784 147 - - 35,784 147 35,931
Total $ 1,663,956 $ 319,179 $ 2,027,787 $ 317,867 $ 19,174,710 $ 2,070,439 $ 21,245,149
E-37
CITY OF OAK RIDGE, TENNESSEE
LEASES - PRINCIPAL AND INTEREST REQUIREMENTS
BY FISCAL YEAR - GOVERNMENTAL ACTIVITIES
7une 30, 2022
City Equipment
Rental Fund -
Fire Truck Lease
Fiscal Total
Year Principal Interest Requirements
2023 $ 86,546 $ 12,391 $ 98,937
2024 89,490 9,447 98,937
2025 92,534 6,403 98,937
2026 95,682 3,255 98,937
Total $ 364,252 $ 31,496 $ 395,748
E-38
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF CHANGES IN LONG-TERM DEBT
BY INDIVIDUAL ISSUE
7une 30, 2022
Original Last Paid and/or
Amount of Interest Date of Maturity Outstanding Issued During Matured During Refunded Outstanding
Description of Indebtedness Issue Rate Issue Date 7/1/21 Period Period During Period 6/30/22
Governmental Activities
NOTESPAYABLE
Pavable throueh Debt Service Fund
TMBF Series 2008 7,752,288 Variable 4/16/08 5/25/27 $ 7,522,288 $ - $ 470,000 $ - $ 7,052,288
Energy Efficient Schools Initiarive 3,000,000 1% 10/4/17 12/1/31 2,679,910 - 243,276 - 2,436,634
Total Notes Payable through Debt Seroice Fund $ 10,202,198 $ - $ 713,276 $ - $ 9,488,922
BONDSPAYABLE
Pavable throueh Debt Service Fund
Series 2017�General Obligation Bonds 7,870,000 2.25%-5% 11/10/17 6/1/33 $ 6,500,000 $ - $ 485,000 $ - $ 6,015,000
Series 2018 General Obligation Bonds 13,285,000 3%-5% 12/18/18 6/1/43 13,285,000 - 380,000 - 12,905,000
Series 2019 General Obligation Bonds 19,320,000 2%-5% 9/13/19 6/1/38 13,845,000 - 810,000 - 13,035,000
Series 2020A General Obligation Bonds 9,000,000 1%-5% 12/18/20 6/1/35 9,000,000 - - - 9,000,000
Series 2020B General ObLigarion Bonds 3,135,000 0.4%-1% 12/18/20 6/1/27 3,135,000 - 100,000 - 3,035,000
Series 2021A General ObLigation Bonds 25,735,000 2%-5% 6/4/21 6/1/35 25,735,000 - 240,000 - 25,495,000
Series 2021B General ObLigarion Bonds 2,575,000 1% 6/4/21 6/1/22 2,575,000 - 2,575,000 - -
Series 2021C General ObLigarion Bonds 7,970,000 135%-4% 9/24/21 6/1/41 - 7,970,000 240,000 - 7,730,000
Total Bonds Payable through Debt Service Fund $ 74,075,000 $ 7,970,000 $ 4,830,000 $ - $ 77,215,000
BONDSPAYABLE
Pavable throueh City Equlpment Replacement Fund
Series 2017 General Obligation Bonds 1,065,000 2.25%-5% 11/24/09 6/1/28 $ 795,000 $ - $ 100,000 $ - $ 695,000
Total Bonds Payable through Ciry Equipment Replacement Fund $ 795,000 $ - $ 100,000 $ - $ 695,000
E-39
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF CHANGES IN LONG-TERM DEBT
BY INDIVIDUAL ISSUE (continued)
7une 30, 2022
Original Last Paid and/or
Amount of Interest Date of Maturity Outstanding Issued During Matured During Refunded Outstanding
Description of Indebtedness Issue Rate Issue Date 7/1/21 Period Period During Period 6/30/22
Business-Type Activities
NOTESPAYABLE
Pavable throueh Electric Fund
TMBF Series 2008 $ 1,453,296 Variable 4/16/08 5/25/27 $ 1,283,296 $ - $ - $ - $ 1,283,296
Total Notes Payable through ELectric Fund $ 1,283,296 $ - $ - $ - $ 1,283,296
Pavable through Waterwarks Fund
TMBF Series 2001 3,000,000 Variable 12/1/O1 5/25/22 $ 229,000 $ - $ 229,000 $ - $ -
TMBF Series 2008 1,794,416 Variable 4/16/08 5/25/27 1,454,416 - - - 1,454,416
SRF 2013-324 3,988,925 1.23% 6/25/13 3/20/37 2,894,633 - 168,624 - 2,726,009
SRF 2013-325 12,370,924 1.23% 6/25/13 9/20/36 9,905,836 - 597,732 - 9,308,104
SRF 2014-337 2,617,943 1.81% 5/6/14 8/20/36 2,117,606 - 123,168 - 1,994,438
SRF 2017-356 1,923,196 1.97% 4/6/17 10/20/40 1,739,196 - 75,240 - 1,663,956
SRF 2017-396 2,335,805 1.69% 6/22/17 4/20/39 2,131,059 - 103,272 - 2,027,787
Total Notes Payable through Waterworks Fund $ 20,471,746 $ - $ 1,297,036 $ - $ 19,174,710
BONDSPAYABLE
Pavable throueh Electric Fund
Series 2017�General Obligation Bonds 7,520,000 2.25%-5% 11/10/17 6/1/30 $ 6,140,000 $ - $ 760,000 $ - $ 5,380,000
Series 2019 General Obligation Bonds 4,810,000 2%-5% 9/13/19 6/1/38 4,805,000 - 5,000 - 4,800,000
Series 2021A General Obligation Bonds 820,000 5% 6/4/21 6/1/26 820,000 - 155,000 - 665,000
Series 2021C General ObLigation Bonds 900,000 135%-4% 9/24/21 6/1/41 - 900,000 - - 900,000
Total Bonds Payable through Electric Fund $ 11,765,000 $ 900,000 $ 920,000 $ - $ 11,745,000
E-40
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF CHANGES IN LONG-TERM DEBT
BY INDIVIDUAL ISSUE (continued)
7une 30, 2022
Original Last Paid and/or
Amount of Interest Date of Maturity Outstanding Issued During Matured During Refunded Outstanding
Description of Indebtedness Issue Rate Issue Date 7/1/21 Period Period During Period 6/30/22
Business-Type Activities(continued)
BONDS PAYABLE(continued)
Pavable through Waterworks Fund
Series 2013 General Obligation Bonds 19,870,000 2%-4375% 7/1/ll 6/1/34 $ 14,835,000 $ - $ 1,055,000 $ - $ 13,780,000
Series 2017 General Obligation Bonds 980,000 2.25%-5% 11/10/17 6/1/28 795,000 - 100,000 - 695,000
Series 2019 General Obligation Bonds 4,165,000 3%-5% 9/13/19 6/1/30 4,165,000 - - - 4,165,000
Series 2021A General Obligarion Bonds 13,745,000 2%-5% 6/4/21 6/1/33 13,745,000 - 1,015,000 - 12,730,000
Total Bonds Payable througb Waterworks Fund $ 33,540,000 $ - $ 2,170,000 $ - $ 31,370,000
Pavable through Emergency Communications Dish-ict Fund
Series 2017 General Obligation Bonds $ 1,690,000 2.25%-5% 11/10/17 6/1/28 $ 1,360,000 $ - $ 170,000 $ - $ 1,190,000
Total Bonds Payable through Emergency Communicarions District Fund $ 1,360,000 $ - $ 170,000 $ - $ 1,190,000
E-41
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF CHANGES IN LEASE OBLIGATIONS
7une 30, 2022
Original Last Paid and/or
Amount of Interest Date of Maturity Outstanding Issued During Matured During Outstanding
Description of Indebtedness Issue Rate Issue Date 7/1/21 Period Period 6/30/22
Governmental Activities
Leases Payable
Pavable throu�,h Debt Service Fund
Golf Carts 189,785 18% 6/28/18 6/28/22 $ 60,809 $ - $ 60,809 $ -
$ 60,809 $ - $ 60,809 $ -
Payable throu City Equipment Rental fund
Fire Truck L,ease 964,291 3.35% 12/15/13 11/15/25 $ 447,950 $ - $ 83,698 $ 364,252
Total Lease Payable through City Equipment Rental Fund $ 447,950 $ - $ 83,698 $ 364,252
E-42
CITY OF OAK RIDGE, TENNESSEE
Statistical Section
This part of the City of Oak Ridge's annual comprehensive financial report presents detailed
information as a context for understanding what the information in the financial statements,
note disclosures, and required supplementary information says about the government's
overall financial health.
Page
Contents Numbers
Financial Trends
These schedules contain trend information to help the reader understand
how the City's financia/performance and we/%being have changed over time.
Net Position by Component F-3
Changes in Net Position F-4
Fund Balances, Governmental Funds F-6
Changes in Fund Balances, Governmental Funds F-7
Revenue Capacity
These schedu/es contain information to help the reader assess the City's most
significant loca/revenue sources, the property tax and/ocal sa/es tax.
Tax Revenue by Source, Governmental Funds F-8
Assessed and Estimated Actual Value of Taxable Property F-9
Property Tax Rates - Direct and Overlapping Governments F-10
Principal Property Taxpayers F-11
Property Tax Levies and Collection F-12
Schedule of Changes in Property Tax Receivables F-13
Local Taxable Sales by Category F-14
Direct and Overlapping Sales Tax Rates F-15
Debt Capacity
These schedu/es present information to he/p the reader assess the
affordabi/ity of the City's current leve/s of outstanding debt and the
governments abi/ity to issue additional debt in the future.
Ratios of Outstanding Debt by Type F-16
Ratios of General Bonded Debt Outstanding F-17
Computation of Direct and Overlapping Debt F-18
Pledged - Revenue Coverage F-19
F-1
CITY OF OAK RIDGE, TENNESSEE
Statistical Section (continued)
Demographic and Economic Information
These schedu/es offer demographic and economic indicators to help the
reader understand the en�ironment within which the City's�nancia/activities
take,n/ace.
Demographic Statistics F-20
Principal Employers F-21
Operating Information
These schedules contain ser�ice and infrastructure data to he/,n the reader
understand how the information in the government's financia/report re/ates
to the services the government provides and the activities it performs.
Full-Time Equivalent City Government Employees by Function F-22
Operating Indicators by Function/Program F-24
Capital Assets Statistics by Function/Program F-26
Revenues for Electric and Waterworks Funds F-27
Electric, Water and Wastewater Rates F-28
Electric, Water and Wastewater Customers by Type F-29
Ten Largest Electric Customers F-30
Sources: Unless otherwise noted, the information in these schedules is derived from the
annual comprehensive financial reports for the relevant year.
F-2
CITY OF OAK RIDGE, TENNESSEE Table 1
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrua/basis of accounting)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental Activities
Net Investment in Capital Assets $ 39,509,172 $ 37,380,405 $ 41,105,838 $ 41,215,126 $ 42,071,020 $ 37,567,543 $ 53,652,737 $ 59,409,322 $ 59,035,572 $ 62,678,596
Restricted - 1,715,972 1,305,009 1,953,697 1,963,837 3,113,390 15,495,285 20,545,750 15,641,645 30,545,047
Unrestricted 24,233,680 23,231,573 6,575,853 8,251,198 15,201,490 24,141,674 5,143,836 9,415,747 33,903,819 45,SSS,711
Total Governmental Activities Net Position $ 63,742,852 $ 62,327,950 $ 49,289,700 $ 51,450,021 $ 59,236,347 $ 64,822,607 $ 74,291,858 $ 89,373,819 $ 108,581,036 $ 139,115,354
Business-type Activities
Net Investment in Capital Assets $ 79,088,293 $ 78,797,599 $ 86,340,385 $ 88,464,334 $ 88,352,038 $ 93,054,587 $ 94,860,464 $ 99,963,107 $ 103,351,975 $ 105,298,625
Restricted - - - - - - - - - -
Unrestricted 6,713,982 11,656,700 7,003,700 9,982,244 13,861,032 14,515,056 16,403,817 14,958,397 16,497,687 21,266,188
Total Business-type Activities Net Position $ 85,802,275 $ 90,454,299 $ 93,344,085 $ 98,446,578 $ 102,213,070 $ 107,569,643 $ 111,264,281 $ 114,921,504 $ 119,549,662 $ 126,564,813
Primary Government
Net Investment in Capital Assets $ 118,597,465 $ 116,178,004 $ 127,446,223 $ 129,679,460 $ 130,423,058 $ 130,622,130 $ 148,513,201 $ 159,372,429 $ 162,387,547 $ 167,977,221
Restricted - 1,715,972 1,305,009 1,953,697 1,963,837 3,113,390 15,495,285 20,545,750 15,641,645 30,545,047
Unrestricted 30,947,662 34,SSS,273 13,579,553 18,233,442 29,062,522 38,656,730 21,547,653 24,377,144 50,401,506 67,154,899
Total Primary Government Net Position $ 149,545,127 $ 152,782,249 $ 142,633,785 $ 149,896,599 $ 161,449,417 $ 172,392,250 $ 185,556,139 $ 204,295,323 $ 228,430,698 $ 265,680,167
F-3
CITY OF OAK RIDGE, TENNESSEE Table 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrua/basis of accounting)
FiscalYear
2013 2014 2015 2016 2077 2078 2019 2020 2021 2022
Expenses
Governmental Activities:
General Government $ 1,876,699 $ 1,722,852 $ 1,319,757 $ 1,663,225 $ 765,491 $ 1,744,227 $ 2,333,443 $ 2,419,579 $ 2,597,170 $ 2,344,028
Public Safety 13,228,802 13,952,499 13,311,097 12,624,115 13,099,182 13,730,545 14,265,719 14,606,204 14,105,549 12,973,376
Public Works 7,060,805 6,837,541 7,255,705 6,577,988 7,322,431 7,141,870 7,561,417 8,277,237 10,105,462 7,393,853
CommunityServices 8,088,462 8,505,463 8,525,602 7,205,991 7,812,036 11,571,106 7,787,573 8,109,811 7,969,751 7,801,737
Education 56,576,776 57,401,831 53,833,767 55,757,224 55,985,398 55,417,869 55,994,005 62,186,284 66,375,235 66,405,111
Grants - - - 1,575,929 1,182,550 1,049,353 1,037,306 1,356,414 1,601,578 1,559,283
Interestand Fiscal Charges 3,747,845 3,278,321 3,192,241 2,995,801 2,500,902 2,701,861 3,042,067 3,120,385 1,981,368 2,058,285
Total Governmental Activities Expenses 90,879,389 91,698,507 87,438,169 88,400,273 91,967,990 93,356,834 95,021,530 100,075,914 104,739,413 100,535,676
Business-type Activities:
Electric 51,452,426 52,872,689 52,334,630 50,767,215 53,240,869 52,842,797 52,864,867 51,029,514 47,862,227 51,950,050
W aterworks 19,069,463 17,063,502 16,501,948 16,722,035 17,941,238 17,679,002 19,271,798 19,639,O50 18,986,075 15,856,515
Emergency Communication District 416,911 533,174 571,904 619,769 629,758 521,629 465,203 686,121 774,446 749,725
Total Business-type Activities Expenses 7Q938,800 7Q469,365 69,408,482 68,109,019 71,511,895 71,043,428 72,601,868 71,354,685 67,622,748 71,586,290
Total Primary Government Expenses $ 161,818,189 $ 162,167,872 $ 156,846,651 $ 156,509,292 $ 163,779,885 $ 164,40Q262 $ 167,623,398 $ 171,43Q599 $ 172,362,161 $ 172,121,966
Program Revenues
Governmental Activities:
Charges for Services
General Government $ 937,120 $ 938,000 $ 936,763 $ 949,213 $ 946,213 $ 954,611 $ 948,967 $ 1,422,832 $ 1,322,919 $ 1,375,285
Public Safety 940,256 1,293,905 465,442 404,417 396,115 441,554 452,928 403,844 457,746 539,OS4
Public Works - - - - 1,892,043 2,027,568 2,035,722 2,055,699 2,074,925 2,219,435
CommunityServices 2,358,126 2,375,420 2,333,738 2,787,607 1,383,479 1,173,372 1,305,369 1,085,134 1,354,344 1,388,751
Education 1,197,033 1,111,116 1,074,415 1,099,377 1,112,544 1,142,086 1,161,953 909,659 700,478 888,294
Operating Grants and Contributions 42,282,175 42,463,661 41,779,426 44,463,632 45,747,010 47,318,803 49,021,202 51,988,367 55,432,046 64,455,008
Capital Grant and Contributions 846,244 449,152 333,436 175,332 987,955 5,706,941 3,330,270 4,123,680
Total Govemmental Activities Program Revenues 47,714,713 4$182,102 47,436,031 5Q153,398 51,810,840 53,233,326 55,914,126 63,572,476 64,672,728 74,989,537
Business-type Activities:
Charges for Services
Electric 52,891,247 55,752,733 55,589,835 53,529,111 55,484,213 54,838,283 54,704,960 52,656,016 51,172,598 56,052,556
Watenvorks 2Q500,542 19,650,454 2Q622,223 2Q286,822 2Q494,805 21,456,117 22,508,078 22,603,614 21,917,462 22,529,432
Emergency Communication District 503,651 472,394 482,070 535,170 609,285 557,100 603,669 551,037 782,049 767,752
Operating Grants and Contributions 33,931 692,522 171,097 9,097 - - - 16,000 16,000 16,000
Capital Grant and Contributions 2,510,060 135,929 695,198 833,049 1,083,643 1,911,165 182,623 1,128,966 676,133 971,319
Total Business-type Activities Program Revenues 76,439,431 76,707,032 77,560,423 75,493,249 77,671,946 78,762,665 77,999,330 76,955,633 74,564,242 80,337,059
Total Primary Government Program Revenues $ 124,154,144 $ 124,889,134 $ 124,996,454 $ 125,646,647 $ 129,482,786 $ 131,995,991 $ 133,913,456 $ 140,52$109 $ 139,236,970 $ 155,326,596
F-4
CITY OF OAK RIDGE, TENNESSEE Table 2
CHANGES IN NET POSITION (continued)
LAST TEN FISCAL YEARS
(accrua/basis of accounting)
FiscalYear
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net(Expense)/Revenue
GovernmentalActivities $ (43,164,676) $ (43,516,405) $ (40,002,138) $ (38,246,875) $ (40,157,150) $ (40,123,508) $ (39,107,404) $ (36,503,438) $ (40,066,685) $ (25,546,139)
Business-type Activities 5,500,631 6,237,667 8,151,941 7,384,230 5,860,051 7,719,237 5,397,462 5,600,948 6,941,494 8,750,769
Total Primary Governmental Net Expense $ (37,664,045) $ (37,278,738) $ (31,850,197) $ (3Q862,645) $ (34,297,099) $ (32,404,271) $ (33,709,942) $ (3Q902,490) $ (33,125,191) $ (16,795,370)
Generel Revenues and Other Changes in Net Position
Governmental Activities:
Property Taxes $ 19,185,345 $ 19,730,132 $ 19,548,500 $ 20,015,990 $ 20,191,464 $ 20,233,329 $ 20,298,772 $ 21,923,751 $ 21,629,212 $ 22,107,139
In-lieu of Tax Payments 2,278,350 2,279,959 2,256,958 2,212,473 2,130,365 2,120,755 2,051,607 2,037,584 2,009,054 1,862,996
Sales Taxes 10,906,934 9,694,331 9,888,838 10,62Q337 11,422,815 11,878,456 14,484,942 16,675,501 18,542,636 18,227,867
Unrestricted State Shared Taxes 4,033,802 4,211,529 4,489,726 4,653,453 4,465,675 4,645,451 4,661,758 4,597,557 4,986,652 5,374,375
Business Taxes 764,685 1,128,925 906,967 621,987 731,453 799,572 861,476 584,187 994,140 1,123,156
OccupancyTaxes 532,309 508,147 542,257 576,664 580,370 590,093 684,538 539,787 557,967 825,914
WholesaleBeerandLiquorTaxes 854,076 848,140 805,552 865,939 869,884 889,940 897,217 988,714 1,075,088 1,071,694
InvestmentEarnings 81,431 49,097 44,170 78,872 182,940 482,564 1,030,933 780,046 76,774 126,501
Investment Earnings -Change in
Fair Value of Interest Rate Swap 3,169,165 (43$257) (882,448) (2,397,961) 1,967,643 995,446 (1,479,460) (2,265,856) 2,962,470 -
Miscellaneous 1,609,940 1,077,182 1,555,196 1,239,656 1,949,793 1,279,915 1,678,296 2,138,166 1,952,978 1,953,025
Transfers 2,911,267 3,012,318 3,081,766 3,379,250 3,451,074 3,329,927 3,406,576 3,285,962 3,367,478 3,407,790
Total Governmental Activities 46,327,304 42,101,503 42,537,512 41,566,660 47,943,476 47,245,448 45,576,655 51,585,399 58,154,449 56,080,457
Business-type Activities:
Investment Earnings 16,499 10,927 12,883 44,238 85,299 285,659 438,254 298,046 19,923 60,002
Miscellaneous 3,307,647 1,415,748 1,094,970 1,053,275 1,272,216 1,274,469 1,265,468 1,044,191 1,334,219 1,312,170
Transfers (2,911,267) (3,012,318) (3,081,766) (3,379,250) (3,451,074) (3,329,927) (3,406,576) (3,285,962) (3,367,478) (3,407,790)
Total Business-type Activities: 412,879 (1,585,643) (1,973,913) (2,281,737) (2,093,559) (1,769,799) (1,702,824) (1,943,725) (2,013,336) (2,035,618)
Total Primary Government $ 46,740,183 $ 40,515,860 $ 40,563,599 $ 39,584,923 $ 45,849,917 $ 45,475,649 $ 46,573,831 $ 49,641,674 $ 56,141,113 $ 54,044,839
Change in Net Position
GovernmentalActivities $ 3,162,628 $ (1,414,902) $ 2,535,374 $ 3,619,785 $ 7,786,326 $ 7,121,940 $ 9,469,251 $ 15,081,961 $ 18,087,764 $ 30,534,318
Business-type Activities 5,913,510 4,652,024 6,178,028 5,102,493 3,766,492 5,949,438 3,694,638 3,657,223 4,928,158 6,715,151
Total Primary Govemment $ 9,076,138 $ 3,237,122 $ 8,713,402 $ 8,722,278 $ 11,552,818 $ 13,071,378 $ 13,163,889 $ 18,739,184 $ 23,015,922 $ 37,249,469
F-5
CITY OF OAK RIDGE, TENNESSEE Table 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(rr�odified accrua/basis of accounting)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable $ 1,852,008 $ 1,589,485 $ 1,389,905 $ 1,164,674 $ 957,489 $ 771,165 $ 531,560 $ 269,391 $ 299,832 $ 326,300
Restricted - - - - 37,710 61,392 72,265 92,917 68,414 33,822
Assigned 1,732,495 478,023 - 344,779 863,559 950,580 1,164,737 1,256,147 741,236 539,869
Unassigned 6 475 637 7,406,202 8 026 420 8,838,339 9 516 080 9,794,937 12 528 940 17,407,593 24 552 050 31 152 181
Total General Fund $ 1Q060,140 $ 9,473,710 $ 9,416,325 $ 10,347,792 $ 11,374,838 $ 11,578,074 $ 14,297,502 $ 19,026,048 $ 25,661,532 $ 32,052,172
All Other Governmental Funds
Nonspendable $ 138,746 $ 302,333 $ 230,247 $ 162,559 $ 291,446 $ 355,529 $ 283,587 $ 232,588 $ 207,820 $ 203,605
Restricted 10,022,584 9,617,768 8,510,637 8,153,049 7,663,118 13,674,334 17,233,997 16,158,719 14,635,528 17,090,018
Committed 219,106 218,611 13,901 822,125 1,907,927 871,708 827,868 596,510 429,885 3,243,424
Assigned 11,012,549 11,133,839 11,123,542 11,524,003 11,618,122 13,019,533 12,249,812 16,082,310 17,245,997 21,235,240
Total All Other Governmental Funds $ 21,392,985 $ 21,272,551 $ 19,878,327 $ 20,661,736 $ 21,480,613 $ 27,921,104 $ 30,595,264 $ 33,070,127 $ 32,519,230 $ 41,772,287
F-6
CITY OF OAK RIDGE, TENNESSEE Table 4
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrua/basis of accounting)
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Taxes $ 23,719,470 $ 24,512,115 $ 24,857,650 $ 24,595,494 $ 25,408,984 $ 25,376,732 $ 26,160,575 $ 28,182,139 $ 28,432,603 $ 29,605,031
Licenses and permits 167,826 174,011 198,147 319,837 306,359 348,300 386,303 548,180 515,542 569,008
Intergovernmental 56,985,039 56,300,293 56,494,962 58,040,888 60,224,822 62,366,535 66,978,023 71,722,110 75,204,039 85,300,437
Chargesforservices 4,454,758 4,284,300 4,181,882 4,547,433 5,028,389 4,960,816 5,086,191 4,956,399 4,962,452 5,323,983
Fines and forfeitures 919,078 1,260,130 430,332 373,344 395,646 430,075 432,445 372,589 432,418 517,858
Grants - - - 1,568,973 954,471 825,329 802,415 1,070,676 1,802,400 2,184,407
Investment earnings 74,640 45,094 4Q068 68,324 154,844 389,651 874,624 687,851 67,283 114,715
Miscellaneous 1,557,362 1,439,370 1,312,819 1,485,006 1,667,225 1,621,499 1,941,824 1,779,183 2,291,138 1,939,047
Total revenues 87,878,173 88,015,313 87,515,860 90,999,299 94,140,740 96,318,937 102,662,400 109,319,127 113,707,875 125,554,486
Expenditures
General government 1,781,556 1,841,776 1,818,670 1,828,749 1,637,951 1,894,168 1,974,458 2,127,662 2,209,479 2,445,732
Public safety 13,471,207 13,908,008 13,422,844 13,149,846 13,326,501 14,000,459 14,632,322 14,376,203 14,183,540 14,417,946
Publicworks 5,988,107 5,480,613 6,620,988 5,975,980 6,028,796 5,897,415 6,222,962 6,599,686 8,333,662 5,671,345
Communityservices 7,942,668 7,944,264 7,946,495 6,505,808 6,715,961 6,349,475 6,678,670 6,841,613 6,767,993 7,035,604
Grants - - - 1,575,929 1,182,550 1,049,353 1,037,306 1,356,414 1,601,878 1,559,283
Education 54,200,956 50,132,796 53,822,408 57,519,116 58,399,108 59,459,104 61,288,608 62,624,989 66,664,648 72,030,971
Capital outlay 1,529,216 435,297 1,333,671 1,148,628 1,002,741 7,734,269 14,010,559 7,969,284 4,391,829 10,464,334
Debt service:
Principal 3,973,611 5,842,203 3,931,056 4,361,945 4,677,133 4,793,265 5,165,328 5,600,428 5,542,841 5,543,276
Interest 3,733,276 6,177,784 3,153,103 2,981,510 2,775,150 2,867,490 3,200,175 3,397,205 2,414,349 2,675,088
Issuance costs and other charges - 50,701 - 263,320 - 121,839 226,317 283,039 508,036 121,481
Total expenditures 92,620,597 91,813,442 92,049,235 95,310,831 95,745,891 104,166,837 114,436,705 111,176,523 112,618,255 121,965,060
(Deficiency)excess of revenues
(under)overexpenditures (4,742,424) (3,798,129) (4,533,375) (4,311,532) (1,605,151) (7,847,900) (11,774,305) (1,857,396) 1,089,620 3,589,426
Other financing sources(uses)
Transfers in 23,316,128 22,837,177 24,113,015 25,093,401 26,334,437 26,485,353 26,708,014 26,732,242 27,105,174 28,099,214
Transfersout (20,404,861) (19,824,859) (21,031,249) (20,841,566) (22,883,363) (23,155,426) (23,301,438) (23,446,280) (23,737,696) (24,691,424)
Notes issued - - - - - 2,508,196 - 491,804 - -
Bonds issued - - - - - 7,870,000 13,285,000 4,655,000 34,735,000 7,970,000
Refunding bonds issued - 3,335,000 - 18,585,000 - - - 14,665,000 5,710,000 -
Premium on bonds issued - 88,947 - 769,805 - 745,500 476,317 1,805,525 4,632,786 676,481
Payment to refunded bond escrow agent - (3,345,000) - (19,091,485) - - - (15,842,486) (38,915,000) -
Payment for swap termination - - - - - - - - (5,654,750) -
Capital lease issued 479,112 - - 1,511,253 - - - - - -
Total otherfinancing sources(uses) 3,390,379 3,091,265 3,081,766 6,026,408 3,451,074 14,453,623 17,167,893 9,060,805 3,875,514 12,054,271
Net changes in fund balances $ (1,352,045) $ (706,864) $ (1,451,609) $ 1,714,876 $ 1,845,923 $ 6,605,723 $ 5,393,588 $ 7,203,409 $ 4,965,134 $ 15,643,697
Debt service as a percentage of
noncapital expenditures 8.5% 13.2% 7.8% 7.8% 7.9% 7.9% 8.5% 8.8% 7.4% 7.4%
F-7
CITY OF OAK RIDGE, TENNESSEE Table 5
TAX REVENUE BY SOURCE, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrua/basis of accounting)
Interest& Wholesale Room
Fiscal Year Property Penalty In lieu Local Sales Gross Receipts Beer/Liquor Occupancy Total
2013 $ 18,899,497 $ 255,931 $ 2,278,350 $ 10,906,934 $ 764,685 $ 854,076 $ 532,309 $ 34,491,782
2014 19,438,590 291,542 2,279,959 9,694,331 1,128,925 848,140 456,094 34,137,581
2015 19,551,499 233,062 2,256,958 9,888,838 906,967 805,582 594,310 34,237,216
2016 19,532,772 208,946 2,212,473 10,620,337 621,987 865,939 576,664 34,639,118
2017 20,102,698 258,016 2,076,920 11,422,815 731,453 869,884 576,385 36,038,171
2018 19,901,005 249,189 2,120,755 11,878,456 799,572 889,940 590,073 36,428,990
2019 19,972,115 318,173 2,051,607 14,484,942 861,476 897,217 684,538 39,270,068
2020 21,533,514 351,878 2,037,584 16,675,501 884,187 988,714 539,787 43,011,165
2021 21,167,316 272,043 2,009,054 18,542,636 994,140 1,075,088 557,967 44,618,244
2022 22,049,049 356,606 1,862,996 18,227,867 1,123,156 1,071,694 825,914 45,517,282
Change
2013-2022 16.66% 39.34% -18.23% 67.12% 46.88% 25.48% 55.16% 31.97%
F-8
CITY OF OAK RIDGE, TENNESSEE Table 6
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Taxable
Assessed
Value as a
Percentage
Real Real Total Taxable of Actual
Fiscal Residential Commercial Personal Public Assessed Value Total Direct Estimated Actual Taxable
Year Tax Year Property Property Property Utilities (1) Tax Rate Taxable Value Value
2013 2012 428,632,500 315,333,474 45,651,129 10,420,634 800,037,737 2.39 2,673,980,722 30%
2014 2013 427,179,425 324,116,058 52,491,746 10,554,576 814,341,805 2.39 2,713,170,470 30%
2015 2014 424,911,152 328,608,194 49,108,550 11,380,859 814,008,755 2.39 2,705,552,731 30%
2016 2015 (2) 395,402,497 336,947,650 52,003,615 12,436,717 796,790,479 2.52 2,619,936,709 30%
2017 2016 396,696,450 337,204,821 52,894,112 11,124,941 797,920,324 2.52 2,626,338,725 30%
2018 2017 398,621,475 343,797,398 51,206,741 9,104,403 802,730,017 2.52 2,641,221,992 30%
2019 2018 401,159,685 351,142,043 51,949,061 9,031,015 813,281,804 2.54 2,672,077,411 30%
2020 2019 406,455,168 360,935,787 78,014,502 8,509,124 853,914,581 2.56 2,803,679,614 30%
2021 2020 (2) 483,384,908 379,104,200 70,193,475 9,248,569 941,931,152 2.3136 3,132,093,962 30%
2022 2021 495,574,425 381,636,240 70,221,244 9,919,415 957,351,324 2.3136 3,188,494,413 30°/a
(1) Assessment ratios are Residential Property, Real at 25% with all bank accounts and $7,500 of all other items in the hands of a taxpayer exempt; Commercial and
Industrial - Real at 40% and Personal at 30% except that the Personal Property of eligible Banks is 40°/o; Public Utilities(excluding Railroads and Telecommunications)-
All Property both Real and Personal at 55%; Railroads and Telecommunications-Real and Personal at 40%.
(2) All properties were reappraised in tax year 2015(fiscal year 2016)and tax year 2020(fiscal year 2021).
F-9
CITY OF OAK RIDGE, TENNESSEE Table 7
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
Overlapping Rate
Fiscal Year Tax Year City Direct Rate Anderson County Roane County
2013 2012 2.39 2.35 1.97
2014 2013 2.39 2.35 1.97
2015 2014 2.39 2.347 1.97
2016 2015 2.52 (1) 2.5945 (1) 2.35 (1)
2017 2016 2.52 2.5945 2.35
2018 2017 2.52 2.5945 2.35
2019 2018 2.54 2.5945 2.35
2020 2019 2.56 2.6945 2.45
2021 2020 2.3136 (1) 2.4560 (1) 2.26 (1)
2022 2021 2.3136 2.4560 2.28
Notes: The City of Oak Ridge is located in two Tennessee counties: Anderson and Roane.
Overlapping rates are those of county governments that apply to property owners within the City of Oak Ridge. Approximately 16% of
the taxable real parcels (2,163 of 13,440) are located in the Roane County portion of the City.
The City's basic property tax rate may be increased only by a majority vote of the Oak Ridge City Council.
The City's base tax rate is the total direct rate.
(1) Each governmental unit operates under different property tax assessment rolls which were certified at the time of their most recent
reappraisal programs (Oak Ridge, Anderson County and Roane County - tax years 2015 (fiscal year 2016) and 2020 (fiscal year
2021).
F-10
CITY OF OAK RIDGE, TENNESSEE Table 8
PRINCIPAL PROPERTY TAXPAYERS
CURRENT TAX YEAR 2021 AND NINE YEARS AGO
(For Fiscal Year 2022 and 2013)
Tax Year 2021 Tax Year 2012
Percentage Percentage
Taxable of Total Taxable of Total
Type of Assessed Assessed Assessed Assessed
Taxpayer Business Valuation Rank Valuation Valuation Rank Valuation
UT-Battelle Management Contractor(ORNL) $ 44,172,166 1 4.61% $ 44,219,336 1 5.52%
Oak Ridge Projects LLC Real Estate Developer 36,486,291 2 3.81% 37,011,567 2 4.62%
TN Oak Ridge Rutgers, LLC Real Estate Developer 13,309,960 3 1.39% - - -
Oak Ridge Tech Center
Oak Ridge Corp Partners Office Complex 11,836,440 5 1.24% 13,384,685 3 1.67%
Energy Solutions (Scientific Ecology Group)
(AKA GTS Duratek) Environmental Services 11,576,408 4 1.21% 9,827,319 6 1.23%
Methodist Medical Center of Oak Ridge Health Services 11,378,685 6 1.19% 10,557,920 5 1.32%
R&R Properties/Richard Chinn Property Management 10,451,520 7 1.09% 12,074,608 4 1.51%
Oak Ridge Properties LLC (Wilkinson Realty) Apartment Complexes 7,673,760 8 0.80% 8,325,024 7 1.04%
A&M Enterprises Real Estate Developer 7,652,520 9 0.80% 6,634,680 8 0.83%
Centrus Energy Corp Nuclear Power 7,253,985 10 0.76% - - -
JMM Realty LLC Real Estate - - - 5,667,240 9 0.71%
ORNL Federal Credit Union Credit Union - - - 4,452,632 10 0.56%
TOTAL $ 161,791,735 16.90% $ 152,155,011 19.01%
Note: Does not include in-lieu of tax payments.
F-11
CITY OF OAK RIDGE, TENNESSEE Table 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected within the Outstanding Delinquent
Fiscal Year of the Levy Total Collections to Date Taxes
Taxes Levied Collections in
Fiscal Tax for the Fiscal Percentage Subsequent Percentage Amount Percentage
Year Year Year Amount of Levy Years Amount of Levy (1) of Levy
2013 2012 $ 19,120,912 $ 18,350,887 96.0% $ 764,603 $ 19,115,490 100.0% $ 5,422 0.0°/a
2014 2013 19,461,911 18,853,042 96.9% 603,825 19,456,867 100.0% 5,044 0.0%
2015 2014 19,737,081 19,128,736 96.9% 598,224 19,726,960 99.9% 10,121 0.1%
2016 2015 19,984,133 19,129,012 95.7% 848,104 19,977,116 100.0% 7,017 0.0%
2017 2016 20,007,493 19,527,803 97.6% 471,446 19,999,249 100.0% 8,244 0.0%
2018 2017 20,201,303 19,596,550 97.0% 534,139 20,130,689 99.7% 70,614 0.3%
2019 2018 20,681,132 19,877,576 96.1% 726,079 20,603,655 99.6% 77,477 0.4%
2020 2019 21,869,529 21,088,802 96.4% 658,438 21,747,240 99.4% 122,289 0.6%
2021 2020 21,773,472 20,987,903 96.4% 551,563 21,539,466 98.9% 234,006 1.1%
2022 2021 22,132,745 21,511,750 97.2% - 21,511,750 97.2% 620,995 2.8%
(1) The Anderson County Delinquent Tax Attorney collects City of Oak Ridge delinquent real property taxes in consolidation with the collection
of Anderson County delinquent taxes. As real property becomes eligible for a delinquent property tax sale under Tennessee State law, the
City is turning those delinquencies over to the Anderson County Delinquent Tax Attorney for collection.
F-12
CITY OF OAK RIDGE, TENNESSEE Table 10
SCHEDULE OF CHANGES IN PROPERTY TAX RECEIVABLES
7une 30, 2022
Property Tax
Receivable Anticipated Abatements Net Receivable
Fiscal Tax Balance Current Year & Allowance For Balance
Year Year June 30, 2021 Levy Adjustments Collections Uncollectibles June 30, 2022
2013 2012 $ 6,205 $ - $ - $ 783 $ (4,804) $ 618
2014 2013 5,827 - - 783 (4,621) 423
2015 2014 12,082 - - 1,961 (6,966) 3,155
2016 2015 11,784 - - 4,767 (5,441) 1,576
2017 2016 12,834 - - 4,590 (10,000) (1,756)
2018 2017 88,024 - (151) 17,259 (40,000) 30,614
2019 2018 120,364 - (514) 42,373 (31,500) 45,977
2020 2019 383,594 - 960 262,265 (30,000) 92,289
2021 2020 804,689 - (19,120) 551,563 (30,000) 204,006
2022 2021 22,132,745 - - 21,511,750 (50,000) 570,995
2023 2022 - 22,214,902 - 16,102 (50,000) 22,148,800
Totals $ 23,578,148 $ 22,214,902 $ (18,825) $ 22,414,196 $ (263,332) $ 23,096,697
F-13
CITY OF OAK RIDGE, TENNESSEE Table 11
LOCAL TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Building Materials $ 33,639,309 $ 33,009,792 $ 33,311,179 $ 34,928,704 $ 36,290,402 $ 37,488,730 $ 38,788,628 $ 42,648,050 $ 52,428,453 $ 57,518,154
General Merchandise 102,079,781 95,533,463 94,528,388 93,263,286 96,334,051 94,072,242 97,315,226 100,984,136 101,335,006 109,200,048
Food Stores 54,855,425 55,253,965 63,894,527 71,995,165 77,907,221 81,154,900 83,616,293 85,853,769 95,517,111 94,588,324
Autos,Boats,Aircrafts 43,364,628 51,886,198 69,482,017 76,301,765 90,371,753 94,335,351 108,999,332 113,964,456 126,739,557 149,767,232
Apparel 277,747 341,387 268,027 134,807 166,105 5,410,980 9,257,146 12,255,015 10,511,760 18,859,415
Furniture and Home Decor 6,827,787 6,465,171 5,833,141 6,143,786 7,033,286 8,649,312 11,225,978 10,813,229 13,247,927 17,275,170
Eating and Drinking Places 64,408,275 66,958,642 67,729,445 70,477,161 74,295,769 79,747,253 84,191,011 90,686,419 81,805,775 100,695,243
Miscellaneous Retail 51,935,742 49,093,236 50,044,092 50,044,079 48,692,539 56,146,929 57,170,727 59,511,309 58,037,113 70,606,956
Total $ 357,388,694 $ 358,541,854 $ 385,090,816 $ 403,288,753 $ 431,091,126 $ 457,005,697 $ 490,564,341 $ 516,716,383 $ 539,622,702 $ 618,510,542
Oak Ridge/Anderson County
Local Sales Tax Rate 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%
Oak Ridge/Roane County
Local Sales Tax Rate 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%
Source: Tennessee Department of Revenue,Research Division
F-14
CITY OF OAK RIDGE, TENNESSEE Table 12
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
Oak Ridge/
Anderson Anderson Oak Ridge/
Fiscal Year County County Roane County Roane County
2013 2.75°/a 2.75°/a 2.75°/a 2.50°/a
2014 2.75% 2.75% 2.75% 2.50%
2015 2.75°/a 2.75°/a 2.75°/a 2.50°/a
2016 2.75% 2.75% 2.75% 2.50%
2017 2.75°/a 2.75°/a 2.75°/a 2.50°/a
2018 2.75% 2.75% 2.75% 2.50%
2019 2.75°/a 2.75°/a 2.75°/a 2.50°/a
2020 2.75% 2.75% 2.75% 2.50%
2021 2.75°/a 2.75°/a 2.75°/a 2.50°/a
2022 2.75% 2.75% 2.75% 2.50%
Note: The maximum local sales tax rate allowed by Tennessee State law is 2.75%.
F-15
CITY OF OAK RIDGE, TENNESSEE Table 13
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental-type Activities Business-type Activities
General Electric General Percentage of
Fiscal Obligation Lease Revenue Obligation Lease Total Primary Personal Income Per
Year Bonds QZAB Notes Payable Payable Bonds Bonds Notes Payable Payable Government (1) Capita(1)
2013 $36,920,000 $4,075,347 $ 54,162,053 $ 930,736 $2,980,000 $31,165,000 $34,844,047 $535,338 $ 165,612,521 17.57% 5,647
2014 35,092,745 3,565,929 53,658,053 531,707 1,885,000 49,411,399 23,289,801 411,096 167,845,730 18.17% 5,723
2015 31,635,133 3,056,510 53,180,053 1,016,695 960,000 48,280,426 29,110,665 280,668 167,520,150 17.98% 5,712
2016 46,938,528 2,547,091 34,076,053 2,026,224 - 47,392,007 33,347,065 143,743 166,470,711 18.10% 5,676
2017 42,444,785 2,037,673 33,911,705 1,566,776 - 55,140,859 25,196,388 - 160,298,186 17.26% 5,465
2018 47,500,147 1,528,255 36,349,575 1,094,637 - 57,085,680 24,476,063 - 168,034,357 17.65% 5,729
2019 55,906,509 1,018,837 36,274,324 607,177 - 54,578,028 25,406,815 - 173,791,690 17.60% 5,925
2020 55,631,634 509,419 36,353,062 528,895 - 51,810,736 24,261,129 - 169,094,875 16.74% 5,765
2021 81,944,512 - 10,202,198 447,950 - 51,476,719 21,755,042 - 165,826,421 (2) 5,281
2022 84,989,836 - 9,488,922 364,252 - 48,703,397 20,458,006 - 164,004,413 (2) 5,223
Notes: Under Tennessee State law, the City's outstanding general obligation debt is not limited.
(1) See Table 17 for personal income and population data.
(2) Data Not Available.
F-16
CITY OF OAK RIDGE, TENNESSEE Table 14
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Governmental-type Business-type
Activities Activities
Fiscal General Obligation General Obligation Net General Actual Taxable Percentage of Actual Debt Per
Year Bonds Bonds Obligation Bonds Value of Property Population Taxable Value of Property Capita
2013 36,920,000 31,165,000 68,085,000 2,673,980,722 29,330 2.5% 2,321
2014 35,092,745 49,411,399 84,504,144 2,713,170,470 29,330 3.1% 2,881
2015 31,635,133 48,280,426 79,915,559 2,705,552,731 29,330 3.0% 2,725
2016 46,938,528 47,392,007 94,330,535 2,619,936,709 29,330 3.6% 3,216
2017 42,444,785 55,140,859 97,585,644 2,626,338,725 29,330 3.7% 3,327
2018 47,500,147 57,085,680 104,585,827 2,641,221,992 29,330 4.0% 3,566
2019 55,906,509 54,578,028 110,484,537 2,672,077,411 29,330 4.1% 3,767
2020 55,631,634 51,810,736 107,442,370 2,803,679,614 31,402 3.8% 3,422
2021 81,944,512 51,476,719 133,421,231 3,132,093,962 31,402 4.3% 4,249
2022 84,989,836 48,703,397 133,693,233 3,188,494,413 31,402 4.2% 4,257
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
F-17
CITY OF OAK RIDGE, TENNESSEE Table 15
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
7une 30, 2022
Percentage
of Debt
Net Debt Applicable City's
Jurisdiction Outstanding To the City Share of Debt
Debt Repaid with Property Taxes:
Direct Debt:
City of Oak Ridge-
General Obligation Bonds $ 84,989,836 100% $ 84,989,836
Notes Payable 9,488,922 100% 9,488,922
Capital Lease 364,252 100% 364,252
Total Direct Debt 94,843,010 94,843,010
Overlapping Debt:
Anderson County, Tennessee 24,912,722 38.48% * 9,586,415
Roane County, Tennessee 29,305,184 13.42°/o * 3,932,756
Total Overlapping Debt 54,217,906 13,519,171
Total Direct and Overlapping Debt $ 149,060,916 $ 108,362,181
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates
the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Oak
Ridge. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne
by the residents and businesses should be taken into account.
" Applicable percentage is determined by ratio of assessed valuation of real property subject to taxation in overlapping unit to valuation of
real property subject to taxation in reporting unit.
F-18
CITY OF OAK RIDGE, TENNESSEE Table 16
PLEDGED - REVENUE COVERAGE
LAST TEN FISCAL YEARS
Electric Revenue Debt
Fiscal Operating Operating Net Available Coverage
Year Revenues Expenses (1) Revenue Principal Interest Total Ratio
2013 $ 55,708,671 $ 48,714,134 $ 6,994,537 $ 1,137,769 $ 850,604 $ 1,988,373 3.52
2014 56,683,842 49,977,956 6,705,886 1,130,310 802,839 1,933,149 3.47
2015 56,549,606 49,495,318 7,054,288 1,124,395 756,696 1,881,091 3.75
2016 54,745,593 47,858,353 6,887,240 1,173,448 718,366 1,891,814 3.64
2017 56,458,469 50,334,898 6,123,571 1,197,771 724,583 1,922,354 3.19
2018 55,943,199 49,653,088 6,290,111 1,205,000 868,886 2,073,886 3.03
2019 55,777,819 49,571,261 6,206,558 1,255,000 984,101 2,239,101 2.77
2020 53,712,958 47,903,916 5,809,042 865,000 513,359 1,378,359 4.21
2021 52,282,601 44,802,507 7,480,094 905,000 438,813 1,343,813 5.57
2022 57,153,236 48,412,944 8,740,292 920,000 433,638 1,353,638 6.46
Waterworks Revenue Debt
Fiscal Operating Operating Net Available Coverage
Year Revenues Expenses (1) Revenue Principal Interest Total Ratio
2013 $ 19,120,259 13,315,440 $ 5,804,819 1,750,948 1,251,386 $ 3,002,334 1.93
2014 20,135,093 11,417,546 8,717,547 1,832,322 1,250,989 3,083,311 2.83
2015 20,757,422 10,583,285 10,174,137 1,937,672 1,375,841 3,313,513 3.07
2016 20,423,615 10,280,700 10,142,915 1,699,647 1,403,998 3,103,645 3.27
2017 20,792,765 11,083,611 9,709,154 3,091,968 1,644,419 4,736,387 2.05
2018 21,625,670 10,757,127 10,868,543 2,696,459 1,681,125 4,377,584 2.48
2019 22,700,687 12,145,573 10,555,114 2,858,966 1,702,760 4,561,726 2.31
2020 22,798,074 12,360,832 10,437,242 4,368,563 1,642,581 6,011,144 1.74
2021 22,141,678 11,622,157 10,519,521 3,317,572 1,548,357 4,865,929 2.16
2022 22,740,922 11,572,667 11,168,255 3,467,036 1,746,651 5,213,687 2.14
(1) Operating expenses do not include interest, depreciation or in-lieu of taxes paid to other City funds.
F-19
CITY OF OAK RIDGE, TENNESSEE Table 17
DEMOGRAPHIC STATISTICS
1980, 1990, 2000 AND 2010 CENSUS INFORMATION AND LAST TEN FISCAL YEARS
�2) �2) �2) �4)
Fiscal (1) Personal Per Capita Median Unemployment School
Year Population Income Income Age Rate Enrollment
1980 27,662 $ 255,707,528 $ 9,244 (1) 35.0 (1) 5.4% (1) 5,274
1990 27,310 482,321,910 17,661 (1) 39.6 (1) 4.9% (1) 4,432
2000 27,387 679,005,891 24,793 (1) 43.4 (1) 3.2% (1) 4,491
2010 29,330 922,897,780 31,466 (1) 43.5 (1) 8.7% (1) 4,472
2013 29,330 942,431,560 32,132 43.2 7.4% 4,687
2014 29,330 923,631,030 31,491 43.1 7.0% 4,689
2015 29,330 931,931,420 31,774 43.2 5.7% 4,637
2016 29,330 919,700,810 31,357 43.2 4.7% 4,660
2017 29,330 928,910,430 31,671 42.3 4.8% 4,592
2018 29,330 952,051,800 32,460 40.7 4.2% 4,631
2019 29,330 987,277,130 33,661 41.3 4.0% 4,679
2020 31,402 1,009,888,320 32,160 (1) 39.3 8.4% 4,820
2021 31,402 (3) (3) (3) 5.2% 4,628
2022 31,402 (3) (3) (3) 3.8% 4,811
(1) Source: U. S. Census Bureau. Statistic is for the City of Oak Ridge
(2) Source: East Tennessee Development District/Bureau of Economic Analysis and Tennessee Department of Labor and
Workforce Development. Statistic is for Anderson County. Information is maintained on a county basis and is unavailable for the
City of Oak Ridge as a separate entity in a non-census year. The City comprises approximately 38% of Anderson County.
(3) Data Not Available
(4) Source: Oak Ridge Schools
F-20
CITY OF OAK RIDGE, TENNESSEE Table 18
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2022 2013
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment
Consolidated Nuclear Services (CNS) (Y-12) 5,689 1 15.86% N/A N/A N/A
UT-Battelle (ORNL) 5,417 2 15.10% 4,500 2 11.88%
Methodist Medical Center 1,342 3 3.74% 1,350 3 3.56%
UCOR 1,156 4 3.22% 1,337 4 3.53%
Oak Ridge Schools 718 5 2.00% N/A N/A N/A
Energy Solutions (AKA Duratek, Scientific Ecology Group, Inc.) 625 6 1.74% 620 7 1.64%
ORNL Federal Credit Union 483 7 1.35% 381 10 1.01%
Oak Ridge Associated Universities 450 8 1.25% 1,000 6 2.64°/o
VNS Federal Services 431 9 1.20% N/A N/A N/A
City of Oak Ridge 402 10 1.12% N/A N/A N/A
BWXT Y-12 N/A N/A N/A 5,000 1 13.20%
Science Applications Int'I Corp. (SAIC) N/A N/A N/A 1,000 5 2.64°/o
Sitel (Client Logic) N/A N/A N/A 600 8 1.58°/a
Navarro Research & Engineering N/A N/A N/A 445 9 1.17°/o
16,713 46.58% 16,233 42.85%
Source: Oak Ridge Chamber of Commerce, Tennessee Department of Labor and Workforce Development and Oak Ridge Schools
Notes: The City of Oak Ridge resides in two counties, Anderson and Roane. For the Percentage of Total City Employment, Anderson County's
Civilian Workforce was used.
F-21
CITY OF OAK RIDGE, TENNESSEE Table 19
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Full-time Equivalent Employees at June 30
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government
City Clerk 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
City Manager 2.00 2.00 2.00 3.00 3.00 3.00 2.00 4.00 4.00 5.00
City Court 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60
Legal 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Administrative Services
Computer Services 10.00 10.00 10.00 10.00 10.00 10.00 11.00 10.00 10.00 10.00
Personnel 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00
Stationery Stores 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Finance 11.00 11.00 11.00 11.00 12.00 12.00 12.00 13.00 13.00 14.00
Business Office 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00
Police
Supervision 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Investigations 12.00 13.00 13.00 13.00 12.00 12.00 12.00 11.00 11.00 11.00
Staff Services 5.00 5.00 5.00 5.00 6.00 6.00 6.00 10.00 10.00 10.00
Patrol 44.75 43.75 44.00 44.00 44.00 44.00 44.00 41.00 41.00 41.00
Emergency Communications 8.00 8.00 8.75 10.00 10.00 10.00 10.00 11.00 11.00 11.00
Animal Control 3.50 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00
School Resource Officer Program 2.35 3.35 3.35 3.35 3.35 3.35 4.35 4.35 4.35 4.35
Special Programs Fund 0.25 0.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fire
Supervision 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Prevention 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00
Fighting 71.00 71.00 71.00 71.00 71.00 71.00 71.00 71.00 70.00 67.00
Public works
Supervision 5.00 5.00 5.00 5.00 5.00 5.00 4.00 4.00 4.00 4.00
Engineering 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 6.00
Janitorial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00
Equipment Shop 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
Work pool 43.00 43.00 46.00 46.00 46.00 46.00 42.00 42.00 42.00 42.00
Water plant 11.00 12.00 12.00 13.50 13.50 13.50 12.00 12.00 12.00 12.00
Wastewater Treatment Plant 21.25 22.00 22.00 22.50 22.50 22.50 24.00 24.00 24.00 24.00
West End Waterworks 8.00 7.00 7.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(Continued)
F-22
CITY OF OAK RIDGE, TENNESSEE Table 19
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION (continued)
LAST TEN FISCAL YEARS
Full-time Equivalent Employees at June 30
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Community Development
Supervision 4.00 4.00 4.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Planning 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Code Enforcement 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00
Recreation and Parks
Supervision 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Golf Course 0.00 0.00 0.00 0.00 0.00 0.00 8.66 8.66 8.66 8.66
Indoor Aquatics 4.18 4.18 4.18 4.18 4.18 4.18 3.95 3.95 3.95 3.95
Outdoor Aquatics 6.27 6.27 6.27 6.27 6.27 6.27 5.75 5.75 5.75 5.75
Centers,Camp&Programs 11.02 11.02 11.02 11.02 11.37 11.37 10.58 10.58 10.58 10.58
Athletics 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Parks 7.00 7.00 7.00 7.00 7.00 7.00 9.00 10.00 10.00 10.00
Scarboro Center 2.39 2.39 2.39 2.39 2.39 2.39 2.39 2.39 2.39 2.39
Senior Center 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Community Service Grants 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 0.50 0.50
Library 17.75 17.75 16.75 16.75 16.50 16.50 16.50 17.06 17.06 17.06
Electric 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00
Subtotal 400.81 403.06 405.81 402.06 403.16 403.16 409.28 415.34 415.34 422.34
Education
Teachers 418.60 411.48 409.48 405.88 399.63 398.68 399.28 380.68 390.86 392.78
Non-Teachers 243.83 237.60 242.10 246.68 260.76 264.26 268.05 289.10 279.35 287.65
Subtotal 662.43 649.08 651.58 652.56 660.39 662.94 667.33 669.78 670.21 680.43
Total 1,063.24 1,052.14 1,057.39 1,054.62 1,063.55 1,066.10 1,076.61 1,085.12 1,085.55 1,102.77
Source: Various City departments
Note: A full-time employee is scheduled to work 2,080 hours per year(including general and emergency leave)except for firefighters who are scheduled to work 2,912 hours per year and
City School certified staff.
F-23
CITY OF OAK RIDGE, TENNESSEE Table 20
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Proaram
General Government
Ordinances Adopted 20 16 13 22 16 23 31 11 16 16
Resolutions Adopted 103 124 139 113 111 128 116 138 119 144
Number of Court Cases-City Violations 4,776 3,672 3,343 3,757 3,852 3,548 2,900 3,347 4,955 2,900
Administrative Services
Applications Received and Processed 634 981 725 569 3,903 2,833 3,321 3,118 2,473 2,089
Purchase Orders Issued for Departments 4,648 4,052 4,189 3,897 4,466 4,144 4,558 3,772 4,092 3,961
Purchase Orders Issued for Stock Purchases 754 834 746 824 833 836 859 878 805 747
Business Licenses Issued� 1,132 1,490 917 1,078 1,072 1,053 1,130 1,116 1,298 1,253
New Business Licenseslssued 163 148 146 136 155 113 143 125 174 163
' Anomalies in Business License issued counts occurred in 2014 and 2015 due to a statewide change in filing dates.
Police
Serious Crimes 1,379 1,289 1,283 1,285 2,321 2,466 2,175 2,033 2,377 1,939
Burglaries 200 156 162 196 145 137 99 85 98 53
TotalArrests 2,044 2,142 2,098 2,047 2,334 2,551 2,531 2,606 3,052 1,366
Calls for Services(CFS)
CFS Emergency Communication Dispatch'� - - - - 42,219 43,089 38,334 41,230 44,237 42,122
CFS Requiring Law Enforcement Response 33,215 27,060 24,449 24,543 33,809 28,506 29,154 31,772 34,327 32,156
Animal Apprehensions 939 1,208 1,176 1,333 1,214 844 726 798 623 622
Registered Animals 2,314 2,211 2,324 2,621 2,352 2,416 2,741 4,069 5,473 4,724
"Not Reported prior to FY2017
Fire
NumberofCalls 4,825 5,015 5,067 5,103 5,220 4,529 3,840 3,829 3,957 4,121
Public Fire Education 9,874 11,612 9,261 10,116 1,541 3,872 3,958 3,491 1,737 3,154
Violations Reported by Department Inspection 1,828 2,091 1,997 1,840 2,317 2,960 1,545 1,855 3,670 3,701
Average Response Time(Mins.) 6.11 6.15 6.12 525 6.14 6.88 7.06 6.18 5.60 5.19
Community Development
Site Plans Reviewed
Non-Residential 11 16 18 20 15 34 18 20 15 9
Residential 13 11 10 11 17 8 6 6 18 5
Building Permits 301 201 155 354 411 381 454 490 764 828
Plumbing Permits 296 209 158 311 356 396 448 406 426 1,089
Electrical Permits 373 225 169 379 378 419 515 497 480 1,873
Nuisance Abatement 920 314 448 347 699 704 868 798 384 571
Abandoned Vehicles 139 55 130 205 169 127 175 108 86 79
Housing Inspections 37 20 54 218 197 95 64 21 12 52
Park and Recreation"'
City-Wide Special Events 7 7 7 7 7 11 30 22 10 10
Cold Facts Program Participants 2,246 2,251 2,263 2,264 2,466 2,469 2,469 2,469 2,469 2,469
Pool Attendance 67,535 64,074 72,069 57,859 24,033 41,205 54,900 37,272 49,285 49,300
SummerCampEnrollment 1,126 1,125 1,086 1,108 975 1,248 1,424 991 728 742
Athletic Activities
Youth Participants 270 229 293 311 260 211 152 171 0 0
Adult Participants 1,581 1,356 705 1,010 1,000 979 1,153 678 227 230
Youth Teams 24 23 32 33 27 19 15 15 0 0
Adult Teams 117 97 74 63 57 64 70 43 13 15
"'Participation decreases due to COVID-19 restrictions.
F-24
CITY OF OAK RIDGE, TENNESSEE Table 20
OPERATING INDICATORS BY FUNCTION/PROGRAM (continued)
LAST TEN FISCAL YEARS
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Library
Total Volume 121,729 115,523 114,242 110,993 128,368 125,150 129,551 161,705 164,131 154,794
Total Non-Print Material 53,322 54,234 51,082 52,956 18,633 19,976 21,390 19,625 23,583 52,759
Total Circulation 160,876 152,007 130,036 136,249 134,741 134,970 143,280 158,928 75,475 135,545
Registered Patrons 22,943 22,569 20,553 20,585 21,444 19,823 19,356 18,985 19,797 23,534
Reference Questions and Reader Service 34,032 35,825 36,174 33,248 31,709 32,031 26,426 2Q919 4,348 24,278
Story Time Attendance 4,217 4,328 4,783 5,518 5,240 5,066 6,325 7,532 1,157 5,369
Public Works
Street Sign Maintenance and Installation 381 1 2 38 33 68 68 68 44 4
Traffic Control and School Flashing Signals
Inventory 452 452 400 472 472 472 472 472 471 471
Hours for Maintenance and Installation 3,582 3,328 2,576 3,562 3,803 3,742 3,742 3,742 404 34
Public Street Lights
Inventory 5,918 5,084 5,900 5,123 5,206 5,316 5,316 5,316 5,282 5,280
Hours for Maintenance and Installation 1,867 1,994 2,186 2,036 1,574 1,668 1,668 1,668 1,766 1,399
Mowing of ROW(Acres) 21 21 21 21 21 21 22 22 22 22
Electric
Purchased Power
Kilowatts-Hours Purchased 552,739,792 558,514,614 548,111,450 532,916,830 531,729,335 533,493,356 522,572,060 504,825,213 493,527,887 496,856,413
Amount $ 41,620,222 $ 42,445,405 $ 41,983,485 $ 40,366,676 $ 41,650,984 $ 41,408,871 $ 40,864,016 $ 38,331,528 $ 36,150,211 $ 39,370,649
Electric Sales
Kilowatts-Hours Sold 531,085,115 538,220,807 522,811,016 512,945,282 511,897,549 505,934,651 50Q362,920 476,952,419 470,848,244 473,977,300
Amount $ 52,891,248 $ 55,752,732 $ 55,589,835 $ 53,829,112 $ 55,484,214 $ 54,838,283 $ 54,704,960 $ 52,656,017 $ 50,940,236 $ 56,052,556
Cost Per Kilowatt-Hour Purchases $0.0753 $0.0760 $0.0766 $0.0757 $0.0783 $0.0776 $0.0782 $0.0759 $0.0732 $0.0792
Percentage of Losses and Unaccounted
for KH Purchases 3.92% 3.63% 4.62% 3.75% 3.73% 5.17% 4.25% 5.52% 4.60% 4.60%
Water
Gallons Treated(Thousands) 2,721,411 2,984,107 2,857,856 2,681,235 2,837,115 2,708,863 2,744,492 2,643,966 2,573,040 2,759,571
Gallons Purchased(Thousands) 19,407 21,049 9,437 - - - - - - -
Gallons Pumped(Thousands) 2,740,818 3,005,156 2,867,293 2,681,235 2,837,115 2,708,863 2,744,492 2,643,966 2,573,040 2,759,571
Gallons Sold(Thousands) 2,551,268 2,623,089 2,480,589 2,341,905 2,379,862 2,294,676 2,274,592 2,125,102 2,044,100 2,100,550
Line Losses and Gallons Unaccounted
for(Thousands) 189,550 382,067 386,704 339,330 457,253 414,187 469,900 518,864 528,940 659,021
Percentage of Losses and Unaccounted for
Gallons to Total Provided(Thousands) 6.9% 12.7% 13.5% 12.7% 16.1% 15.3% 17.1% 19.6% 20.6% 23.9%
Average Daily Consumption
(Thousands of Gallons) 6,990 7,187 6,796 6,416 6,520 6,287 6,232 5,822 5,600 5,755
Wastewater
Rarity Ridge
Gallons Treated(Thousands) 47,160 25,028 36,321 42,983 52,536 53,765 63,194 55,770 55,770 51,852
West End Plant
Gallons Treated(Thousands) 1,627,351 1,579,620 1,556,882 1,626,381 1,650,491 1,787,231 1,948,213 1,986,270 1,986,270 1,563,281
Schools
Enrollment 4,687 4,671 4,637 4,660 4,592 4,631 4,679 4,820 4,628 4,811
Average Daily Membership 4,438 4,464 4,389 4,403 4,383 4,400 4,446 4,531 4,469 4,541
AverageDailyAttendance 4,274 4,212 4,173 4,189 4,193 4,182 4,238 4,383 4,268 4,348
Average Test Scores(ACT) 23.0 23.3 23.1 23.1 22.9 23.3 21.4 22.7 22.7 21.8
Source:Various City departments
F-25
CITY OF OAK RIDGE, TENNESSEE Table 21
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Proqram 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police
Stations 1 1 1 1 1 1 1 1 1 2
Marked Vehicles 32 44 44 44 42 41 44 46 49 47
Unmarked Vehicles 11 14 14 15 14 12 13 15 15 15
Animal Control 3 3 3 3 4 3 3 3 3 3
Other Vehicles 6 10 10 10 11 10 10 7 7 7
Fire
Stations 4 4 4 4 4 4 4 4 4 4
Fire Trucks(Pumpers and Ladder) 10 10 10 10 10 10 S S 9 9
Rescue Vehicles-Radio Equipped 3 4 4 4 4 4 4 4 4 4
SUVs/Command-Radio Equipped S S S S S S 6 6 6 6
SupportlCommand Vehides-Radio Equippec - - - - - - 6 6 6 6
Fire Specialists'Vehicles 4 2 2 2 2 2 - - - -
HazMat Truck 1 1 1 1 1 1 1 1 1 1
Ambulances 2 2 2 2 2 2 2 2 2 2
Park and Recreation
Parks 15 15 15 15 15 15 15 15 15 15
Parks/Greenbelt(Total Acres) 2,500 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600
Swimming Pools 2 2 2 2 2 2 2 2 2 2
Tennis Courts 22 23 23 23 23 23 23 23 23 23
Baseball Parks 5 5 5 5 5 5 5 5 5 5
Softball Parks 6 6 6 6 6 6 6 7 7 7
Gymnasium 2 2 2 2 2 2 2 2 2 2
Golf Course 1 1 1 1 1 1 1 1 1 1
Soccer Fields 9 9 9 9 9 9 9 9 9 9
Community Centers 3 3 3 3 3 3 3 3 3 3
Disc Golf Courses 2 2 2 2 2 2 2 2 2 2
Library 1 1 1 1 1 1 1 1 1 1
Public Works
Miles of Roads and Streets 229.59 229.59 229.59 229.59 229.59 229.59 229.59 232.70 233.76 253.53
Miles of Sidewalks 119.65 119.68 119.68 119.68 119.68 119.68 119.68 119.68 120.90 120.90
Electric
Miles of Electric Lines 286.00 286.00 286.00 286.00 286.00 346.19 346.19 346.19 346.19 358.00
Number of Regular Street Lights 5,918 5,084 5,084 5,084 5,206 5,316 5,316 5,316 5,316 4,215
Number of Private Outdoor Lights 1,393 1,355 1,355 1,355 1,349 1,349 1,349 1,349 1,349 1,972
Water
Miles of Water Main 245.69 249.05 251.46 251.46 251.46 251.65 251.65 254.88 256.80 300.00
Number of Fire Hydrants 2,845 2,541 2,558 2,541 2,562 2,576 2,576 2,613 2,635 2,792
Treatment Plants 2 2 2 2 2 2 2 2 2 2
Wastewater
Miles of Sewer Main 262.23 262.10 262.53 262.74 262.77 263.21 263.21 266.89 269.16 268.57
Treatment Plants 2 2 2 2 2 2 2 2 2 2
Treatment Capacity(Thousand of Gallons) 30,010 30,010 30,010 30,010 30,010 30,010 30,010 30,010 30,010 30,010
Schools
Elementary Schools 4 4 4 4 4 4 4 4 4 4
Middle Schools 2 2 2 2 2 2 2 2 2 2
High Schools 1 1 1 1 1 1 1 1 1 1
Source: Various City departments
Note: No capital asset indicators are available for general government function.
F-26
CITY OF OAK RIDGE, TENNESSEE Table 22
REVENUES FOR ELECTRIC AND WATERWORKS FUNDS
LAST TEN FISCAL YEARS
Waterworks (1)
Wastewater
Fiscal Year Electric Revenue Water Revenue Revenue Total
2013 $ 55,712,659 $ 8,421,005 $ 9,137,319 $ 73,270,983
2014 56,683,842 8,744,456 9,542,067 74,970,365
2015 56,549,606 9,634,753 10,744,983 76,929,342
2016 54,745,593 9,521,382 10,902,233 75,169,208
2017 56,458,469 9,328,129 11,464,636 77,251,234
2018 55,943,199 9,592,802 12,032,868 77,568,869
2019 55,777,819 10,068,706 12,631,981 78,478,506
2020 53,712,958 10,264,378 12,533,696 76,511,032
2021 52,282,601 10,134,825 11,824,657 74,242,083
2022 57,153,236 10,187,279 12,342,153 79,682,668
Note: Revenues exclude one-time grant proceeds and capital contributions by developers.
(1) Waterworks revenue does not include payments from US Department of Energy contracts for operation of utilities on the
west end of Oak Ridge, including the federal East Tennessee Technology Park.
F-27
CITY OF OAK RIDGE, TENNESSEE Table 23
ELECTRIC, WATER AND WASTEWATER RATES
LAST TEN FISCAL YEARS
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Electric(1)
Residential
Base Charge $ 9.70 $ 9.83 $ 9.83 $ 9.83 $ 9.83 $ 11.83 $ 13.83 $ 16.83 $ 16.83 $ 16.83
All kWh 0.09748 0.10284 0.09916 0.09820 0.10170 0.09963 0.09779 0.09456 0.09783 0.10835
Commercial
GSA1 Base Charge $ 17.93 $ 18.14 $ 18.14 $ 18.14 $ 18.14 $ 18.14 $ 18.14 $ 21.14 $ 21.14 $ 21.14
All kWh 0.10977 0.11535 0.11186 0.11108 0.11466 0.11481 0.11575 0.11257 0.11579 0.12615
GSA2 Base Charge $ 80.00 $ 80.95 $ 80.95 $ 80.95 $ 80.95 $ 80.95 $ 80.95 $ 80.95 $ 80.95 $ 80.95
1st 15,000 kWh 0.11139 0.11699 0.11350 0.11272 0.11630 0.11645 0.11739 0.11424 0.11736 0.12779
Additional kWh 0.06201 0.06600 0.06161 0.05962 0.06220 0.06140 0.06122 0.05799 0.06109 0.07134
kW,51-1,000 14.93 15.42 15.73 16.13 16.43 16.73 17.09 17.13 17.13 17.13
GSA3 Base Charge $ 200.00 $ 202.38 $ 202.38 $ 202.38 $ 202.38 $ 202.38 $ 202.38 $ 202.38 $ 202.38 $ 202.38
All kWh 0.06339 0.06739 0.06300 0.06101 0.06359 0.06279 0.06261 0.05938 0.06255 0.07273
kW,0-1,000 14.40 14.89 15.22 15.63 15.95 16.27 16.65 16.69 16.69 16.69
kW, 1,001 -5,000 17.18 17.76 18.15 18.64 19.02 19.40 19.85 19.89 19.89 19.89
Outdoor Light
All kWh $ 0.06512 $ 0.06926 $ 0.06472 $ 0.06267 $ 0.06534 $ 0.06452 $ 0.06432 $ 0.06098 $ 0.06425 $ 0.07477
Water
Minimum Bill(0-2,000 gallons) $ 13.50 $ 14.85 $ 16.04 $ 16.04 $ 16.04 $ 16.04 $ 17.68 $ 17.68 $ 17.68 $ 17.68
Next 8,000 gallons per 1,000 gallons 5.60 6.16 6.65 6.65 6.65 6.65 7.33 7.33 7.33 7.33
Next 40,000 gallons per 1,000 gallons 5.10 5.61 6.06 6.06 6.06 6.06 6.68 6.68 6.68 6.68
Next 150,000 gallons per 1,000 gallons 5.10 4.57 4.94 4.94 4.94 4.94 5.45 5.45 5.45 5.45
Next 800,000 gallons per 1,000 gallons 5.10 4.57 4.94 4.94 4.94 4.94 5.45 5.45 5.45 5.45
Next 1,000,000 gallons per 1,000 gallons 5.10 4.57 4.94 4.94 4.94 4.94 5.45 5.45 5.45 5.45
Wastewater
Minimum Bill(0-2,000 gallons) $ 18.50 $ 21.28 $ 23.41 $ 23.41 $ 24.81 $ 26.30 $ 26.30 $ 26.30 $ 26.30 $ 26.30
Next 8,000 gallons per 1,000 gallons 7.75 8.91 9.80 9.80 10.39 11.01 11.01 11.01 11.01 11.01
Next 40,000 gallons per 1,000 gallons 7.75 8.91 9.80 9.80 10.39 11.01 11.01 11.01 11.01 11.01
Next 50,000 gallons per 1,000 gallons 7.75 8.91 9.80 9.80 10.39 11.01 11.01 11.01 11.01 11.01
Next 4,999,900 gallons per 1,000 gallons 7.75 8.91 9.80 9.80 10.39 11.01 11.01 11.01 11.01 11.01
All over 5,000,000 gallons per 1,000 gallons 7.75 8.91 9.80 9.80 10.39 11.01 11.01 11.01 11.01 11.01
Notes: Bills on all above rates are subject to certain adjustments.The above rates are net,the gross rates being 5 percent higher.
(1) Electric rates may change on a quarterly basis due to a pass-through fuel cost adjustment(FCA)on the energy charges from the Tennessee Valley Authority.
F-28
CITY OF OAK RIDGE, TENNESSEE Table 24
ELECTRIC, WATER AND WASTEWATER CUSTOMERS BY TYPE
LAST TEN FISCAL YEARS
Electric Water Wastewater
Small Large Street
Lighting Lighting and
Fiscal and and Outdoor
Year Residential Power Power Lighting Residential Commercial Residential Commercial
2013 13,908 1,826 376 62 11,250 1,658 10,982 1,207
2014 13,961 1,803 393 62 11,216 1,668 10,948 1,199
2015 13,974 1,800 383 62 11,289 1,716 11,022 1,223
2016 14,023 1,836 388 62 11,294 1,725 11,027 1,229
2017 13,920 1,819 394 62 11,298 1,709 11,025 1,205
2018 13,986 1,827 417 61 11,386 1,733 11,111 1,223
2019 14,024 1,834 409 62 11,494 1,705 11,221 1,195
2020 14,155 1,829 396 61 11,633 1,698 11,357 1,194
2021 14,293 1,828 402 58 11,937 1,544 11,446 1,196
2022 14,826 1,885 372 57 12,055 1,407 11,738 1,210
F-29
CITY OF OAK RIDGE, TENNESSEE Table 25
TEN LARGEST ELECTRIC CUSTOMERS
CURRENT YEAR AND NINE YEARS AGO
2022 2013
Annual Annual Annual Percentage Of Annual Annual Annual Percentage Of
Customer Demand Kwh Usage Sales Dollars Rank Total Sales Demand Kwh Usage Sales Dollars Rank Total Sales
Energy Solutions(AKA Scientific Ecology,
GTS Duratek) 126,919 28,795,244 $ 2,774,428 1 4.95% 30,633 36,487,177 $ 1,930,137 4 3.65%
Methodist Medical Center 47,194 26,375,350 2,651,851 2 4.73% 46,749 22,146,558 2,130,682 3 4.03%
City of Oak Ridge 38,339 16,657,914 1,956,678 3 3.49% 63,931 25,569,719 2,942,495 1 5.56°/o
Oak Ridge Project LLC 25,290 14,237,000 1,413,898 4 2.52% 29,343 14,198,000 1,330,504 7 2.51%
BWXTY-12 23,121 10,581,952 1,191,600 5 2.13% - - - - -
Oak Ridge Board Of Education 24,661 8,857,932 1,142,128 6 2.04% 39,661 13,665,942 1,485,519 6 2.81%
American Centrifuge 20,478 11,026,400 1,109,531 7 1.98% - - - - -
TTE Casting Technologies 17,055 6,891,000 686,160 $ 1.22% - - - - -
Coors Tek 15,823 7,827,300 681,258 9 1.22% 11,993 6,815,000 644,165 9 �,ZZ%
US Department of Energy 8,678 6,504,700 666,908 10 1.19% 62,458 34,255,182 2,745,617 2 5.19%
Centrus Energy Corp(AKA USEC Inc.) - - - - 35,757 17,875,071 1,711,792 5 3.24%
Oak Ridge Associated Universities - - - - 14,965 6,366,315 635,462 10 1.20%
Advanced Measurement - - - - 14,650 8,010,150 720,130 8 1.36%
Total $ 14,274,440 25.47% $ 16,276,503 30.77%
F-30
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
For the Year Ended )une 30, 2022
Federal
Assistance
Federal Agency/Pass-through Agency/ Listing Identifying
State Grantor Program or Cluster Title Number Number Expenditures
Federal Awards
U.S. Department of Energy:
Direct Program:
Police Response Enhancement 81.214 DE-SC0015351 $ 64,488 (1)
Police Response Enhancement 81.214 DE-NA0003997 534,656 (1)
Oak Ridge Fire Department Response Enhancement 81.214 DE-NA0004046 865,737 (1)
Passed-through Tennessee Department of Military:
Off-Site Emergency Planning and Response, Fire Department 81.214 34101-39521 16,000 (1)
Passed-through Tennessee Department of Environment and Conservation:
Tennessee Oversight Interlocal Agreement 81.092 32701-04052 62,321
Tennessee Oversight Interlocal Agreement 81.214 32701-04052 40,270 (1)
Total U.S. Department of Energy 1,583,472
U.S. Department of Housing and Urban Development:
Direct Program:
CDBG-Entitlement Grants Cluster: (2)
Community Development Block Grant 14.218 B-18-MC-47-0010 8,169 (1)
Community Development Block Grant - COVID 14.218 B-20-MW-47-0010 65,564 (1)
Passed-through Tennessee Housing Development Agency:
HOME Investment Partnership Program 14.239 HM-1516-28 19,767
Total U.S. Department of Housing and Urban Development 93,500
U.S. Department of Justice:
Direct Program:
Equitable Sharing Program 16.922 TN0010300 37,238
Coronavirus Emergency Supplemental Funding Program - COVID 16.034 2020-VD-BX-0508 11,394
Total U.S. Department of Justice 48,632
G-1
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE (continued)
For the Year Ended )une 30, 2022
Federal
Assistance
Federal Agency/Pass-through Agency/ Listing Identifying
State Grantor Program or Cluster Title Number Number Expenditures
Federal Awards (continued)
U.S. Department of Homeland Security:
Direct Program:
Assistance to Firefighters Grant 97.044 EMW-2020-FG-11085 14,791
Total U.S. Department of Homeland Security 14,791
U.S. Department of Treasury:
Direct Program:
Coronavirus State and Local Fiscal Recovery Fund - COVID 21.027 SLFRP2776 566,922
Total U.S. Department of Treasury 566,922
U.S Department of Transportation:
Passed-through Tennessee Department of Transportation:
Highway Planning and Construction Cluster: (2)
Rails to Trails 20.205 01LPLM-F3-042 8,361 (1)
CMAQ Phase II 20.205 01LPLM-F3-051 28,405 (1)
CMAQ Phase III 20.205 01LPLM-F3-062 3,108 (1)
Passed-through Tennessee Department of Safety and Homeland Security:
Highway Safety Cluster: (2)
State and Community Highway Safety 20.600 Z21THS221 2,920 (1)
State and Community Highway Safety 20.600 Z22THS217 5,427 (1)
Network Coordinator 20.600 Z21THS222 2,514 (1)
Network Coordinator 20.600 Z22THS216 8,083 (1)
Total U.S Department of Transportation 58,818
Appalachian Regional Commission:
Direct Program:
Oak Ridge Airport Project Planning and Design 23.002 TN-18621-A 895,327
Total Appalachian Regional Commission 895,327
G-2
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE (continued)
For the Year Ended )une 30, 2022
Federal
Assistance
Federal Agency/Pass-through Agency/ Listing Identifying
State Grantor Program or Cluster Title Number Number Expenditures
Federal Awards (continued)
Institute of Museum and Library Services:
Passed-through Tennessee State Library and Archives:
Library Services Technology Grant (ARPA) - COVID 45.310 LS-250238-OLS-21 4,500
Total Institute of Museum and Library Services 4,500
Executive Office of the President:
Passed-through Laurel Counry Fiscal Court:
High Intensity Drug Trafficking Areas 95.001 G21AP0001A 33,592
High Intensity Drug Trafficking Areas 95.001 G22AP0001A 42,122
Total Executive Office of the President 75,714
Federal Emergency Management Agency:
Passed-through Tennessee Emergency Management Agency
Disaster Grants - Public Asssistance 97.036 34101-03922 14,100
Total Federal Emergency Management Agency 14,100
Total Federal Awards $ 3,355,776
G-3
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE (continued)
For the Year Ended )une 30, 2022
Federal
Assistance
Federal Agency/Pass-through Agency/ Listing Identifying
State Grantor Program or Cluster Title Number Number Expenditures
State Financial Assistance
Training Opportunities for the Public (TOP) -Tennessee State Library and Archives N/A 30501-01122-40 3,970
LPRF Blankenship Field Renovation - Tennessee Department of Environment&Conservatior N/A 71603 24,784
Operating Assistance Project - Tennessee Department of Transportation N/A 01CRIT-S3-005 43,544
Operating Assistance Project - Tennessee Department of Transportation N/A 01CRIT-S3-006 48,664
Multimodal Access Project-Tennessee Department of Transportation N/A 01LPLM-S3-038 16,938
Oak Ridge Gateway Project - Tennessee Department of Transportation N/A 01 LPLM-S3-043 5,576
Aeronautic Economic Development Fund - Tennessee Department of Transportation N/A AERO-21-314-00 60,407
Aeronautic Economic Development Fund - Tennessee Department of Transportation N/A AERO-21-336-00 344,331
Aeronautic Economic Development Fund - Tennessee Department of Transportation N/A AERO-22-251-00 37,000
2021 Local Government Direct Appropriation Grant - Tennessee Department of
Finance &Administration N/A V110243 11,319
2022 Local Government Direct Appropriation Grant - Tennessee Department of
Finance &Administration N/A N/A 333,991
Tennessee Emergency Management Agency N/A 34101-03922 2,350
Total State Financial Assistance $ 932,874
(1) Total for Assistance Listing No. 81.214, $1,521,151; Assistance Listing No. 20.205, $39,874; Assistance Listing No. 20.600, $18,944; Assistance
Listing No. 14.218, $73,733.
(2) Total for Highway Planning and Construction Cluster, $39,874; Highway Safety Cluster, $18,944; CDBG-Entitlement Grants Cluster $73,733.
G-4
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE (continued)
For the Year Ended )une 30, 2022
Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance
1. LOANS OUTSTANDING
At June 30, 2022, federal awards expended for loan programs were outstanding of$17,720,294 on loans obtained through the Clean Water State
Revolving Fund. Principal payments during the current fiscal year were $1,068,036.
2. BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance summarizes the expenditures of the City of Oak
Ridge under programs of the federal and state governments for the year ended June 30, 2022. The schedule is presented using the modified
accrual basis of accounting. The City did not elect to use the 10% de Minimis indirect cost. The schedule excludes the Oak Ridge City Schools
federal and state grant activity which is presented in a separate report.
G-5
97I7 Cogdill Road phone: (865) 637-416i
sU�re zo1 � COULTER�'JUSTUS, P.C. fax: �g�s� sz4-z�sz
Knoxville,TN 3793Z web: cj-pc.com
Report on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with
Gove�nment Auditing Standards
Independent Auditor's Report
Members of the City Council
City of Oak Ridge, Tennessee
We have audited in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities,the business-type activities,the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information of the City of Oak Ridge,
Tennessee (the City), as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have
issued our report thereon dated January 10, 2023. Our report includes a reference to other auditors
who audited the financial statements of the General Purpose School Fund, the School Federal
Projects Fund, the Other Education Special Revenue Fund, the Extended School Program Fund,
the Central Cafeteria Fund, the Oak Ridge Public Schools Education Foundation, Inc., the
Scholarship Fund and the Internal School Funds, as described in our report on the City's financial
statements. This report does not include the results of the other auditors' testing of internal control
over financial reporting or compliance and other matters that are reported on separately by those
auditors.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements,we considered the City's internal
control over financial reporting (internal control) as a basis far designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not far the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accardingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control eXists when the design ar operation of a control does not allow
management or employees,in the normal course of performing their assigned functions,to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the City's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
G-6
� COULTER�JUSTUS, P.C.
Members of the City Council
City of Oak Ridge, Tennessee
Report on Internal Control over Financial Reporting (continued)
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that were not identified. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses. We
identified a deficiency in internal control, described in the accompanying schedule of findings and
questioned costs as item 2022-01 that we consider to be a significant deficiency.
We also noted certain matters that we have reported to management of the City in a separate letter.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
The City's Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City's
response to the findings identified in our audit and described in the accompanying schedule of
findings and questioned costs. The City's response was not subjected to the other auditing
procedures applied in the audit of the financial statements and, accordingly,we express no opinion
on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
��u�ll� �i j��2tct�, id• �•
Knoxville, Tennessee
January 10, 2023
G-7
�)7i7 Cogdill Road phone: (BC�j C37-�I6I
su�re zol � COULTER�JUSTUS, P.C. fax: ��cs� sz4-z�sz
Knoxville,TN 37932 weh: cj-pc.com
Report on Compliance for Each Major Federal Program and on Internal Control
over Compliance in Accordance with the Uniform Guidance
Independent Auditor's Report
Members of the City Council
City of Oak Ridge, Tennessee
Report on Compliance for Each Major Federal Program
Opinion on each Major Federal Program
We have audited compliance of the City of Oak Ridge, Tennessee (the City) with the types of
compliance requirements identified as subject to audit in the OMB Compliance Supplement that
could have a direct and material effect on each of the City's major federal programs for the year
ended June 30, 2022. The City's major federal programs are identified in the summary of auditor's
results section of the accompanying schedule of findings and questioned costs. The City's financial
statements include the operations of the General Purpose School Fund,the School Federal Projects
Fund, and the Central Cafeteria Fund,which expended$14,905,457 in federal awards which is not
included in the City's schedule of expenditures of federal awards and state financial assistance
during the year ended June 30, 2022. Our audit, described below, did not include the operations of
these funds because those funds engaged other auditors to perform an audit of compliance.
In our opinion, the City complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs
for the year ended June 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America(GAAS); the standards applicable to financial audits contained in
Governrnent Auditing Standards issued by the Comptroller General of the United States
(GoveNnment Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards(Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
compliance for each major federal program. Our audit does not provide a legal determination of
the City's compliance with the compliance requirements referred to above.
G-8
� COULTER�JUSTUS, P.C.
Members of the City Council
City of Oak Ridge, Tennessee
Responsibilities of Management for Compliance
Management is responsible far compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements
applicable to the City's federal programs.
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred,whether due to fraud or error, and express an
opinion on the City's compliance based on our audit. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS, Government Auditing Standa�ds, and the Uniform Guidance will always
detect material noncompliance when it exists. The risk of not detecting material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material,if there
is a substantial likelihood that, individually or in the aggregate, it would influence the judgment
made by a reasonable user of the report on compliance about the City's compliance with the
requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the
Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the
audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the City's compliance with the
compliance requirements referred to above and performing such other procedures as
we considered necessary in the circumstances.
• Obtain an understanding of the City's internal control over compliance relevant to the
audit in order to design audit procedures that are appropriate in the circumstances and
to test and report on internal control over compliance in accordance with the Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material
weaknesses in internal control over compliance that we identified during the audit.
G-9
� COULTER�JUSTUS, P.C.
Members of the City Council
City of Oak Ridge, Tennessee
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, ar a combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in inter-nal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor's Responsibilities for the Audit of Compliance section above and was not designed to
identify all deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies in internal control over compliance. Given these limitations, during our
audit we did not identify any deficiencies in internal control over compliance that we consider to
be material weaknesses, as defined above. However, material weaknesses or significant
deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accardingly, no such opinion is eXpressed.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
!C1�G�1� vi j���Gt�, �• Ci•
Knoxville, Tennessee
January 10, 2023
G-10
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended 7une 30, 2022
Section I -- Summary of Auditors' Results
Finaacia/Statements
Type of auditors' report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? None reported
Significant deficiency(s) identified not
considered to be material weaknesses? Yes
Noncompliance material to financial statements: None reported
Federa/Awards
Internal control over major programs:
Material weakness(es) identified? None reported
Significant deficiency(s) identified not
considered to be material weaknesses? None reported
Type of auditors' report issued on compliance
for major programs: Unmodified
Any audit findings disclosed that are required
to be reported in accordance with
Section 200.516 of the Uniform Guidance? None reported
Identification of major programs: CFDA Name of Program
23.002 Oak Ridge Airport Project Planning
and Design
21.027 Coronavirus State and Local Fiscal
Recovery Fund (SLFRF)
Dollar threshold used to distinguish between
Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? Yes
G-11
CITY OF OAK RIDGE, TENNESSEE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
For the Year Ended 7une 30, 2022
Section II -- Financial Statement Findings
2022-01 Reconciliation of Accounts Receivable
Criteria or Specific Requirement—Internal control procedures over accounts receivable should include
procedures whereby the accounts receivable subledger is reconciled to the general ledger on a regular
basis.
Condition — Management did not adequately reconcile the accounts receivable subledger for the Electric
Fund, Waterworks Fund, and Solid Waste Fund to the general ledger at year-end.
Cause and Effect — The City completed the software conversion of its utility billing system in a prior
period. The City is in the process of converting its general ledger to this software system, however it was
not completed as of year-end. The accounts receivable subledger is maintained in the new software.
Differences were noted between the subledger and the general ledger, but they have not been fully
reconciled.
Recommendations — We recommend the Ciry implement procedures to manually reconcile accounts
receivable to the subledger on a timely basis.
Management's Response — We concur with the audit recommendations. Once the general ledger is
converted to the same software as the subledger, we will implement procedures for preparing a
reconciliation of accounts receivable to the subledger.
Section III -- Federal Award Findings and Questioned Costs
None reported.
Section IV-- Schedule of Prior Year Audit Findings
Not applicable as there were no prior year findings reported
G-12
Sa�,CITYpFry_
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CITY OF �`A
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OAK RIDGE
POST OFFICE BOX 1 • OAK RIDGE, TENNESSEE 37831-0001
CITY OF OAK RIDGE, TENNESSEE
MANAGEMENT'S CORRECTIVE ACTION PLAN
For the Year Ended 7une 30, 2022
Finding 2022-01: Reconciliation of Accounts Receivable
Person(s Responsible for Implementin� the Corrective Action:
Janice McGinnis
Director of Finance, City of Oak Ridge, Tennessee
Corrective Action Planned:
The City is in the process of converting the general ledger to the same software that maintains the
accounts receivable subledger for the Electric Fund, Waterworks Fund, and Solid Waste Fund.
Once the general ledger is converted to the same software as the subled�er, we will implement
procedures for preparing a reconciliation of accounts receivable to the subledger.
Anticipated Completion Date of Corrective Action:
By the end of fiscal year 2023
� ��wy
Jan McGinnis
G-13