HomeMy WebLinkAboutCity of Sisters - Public Financial ReportCITY OF SISTERS, OREGON
Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Prepared by:
The City of Sisters
Finance Department
Joseph O’Neill
Finance Officer
CITY OF SISTERS
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
PAGE
Transmittal Letter i-iii
Officials of the City iv
Organizational Chart v
Certificate of Achievment (GFOA 22-23)vi
INDEPENDENT AUDITOR'S REPORT A-C
MANAGEMENT'S DISCUSSION AND ANALYSIS a-k
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements:
Statement of Net Position 2
Statement of Activities 3
Governmental Fund Financial Statements:
Balance Sheet - Governmental Funds 5
Reconciliation of the Balance Sheet - Governmental Funds
to the Statement of Net Position 6
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 7
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances - Governmental Funds to the Statement of Activities 8
Proprietary Fund Financial Statements:
Statement of Net Position - Proprietary Funds 10
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 11
Statement of Cash Flows - Proprietary Funds 12
Notes To The Basic Financial Statements 14-50
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
General Fund 52
Street Fund 53
Parking District Fund 54
Schedule of Proportionate Share of the Net Pension Liability 55
Schedule of Employer Contributions 56
Schedule of Proportionate Share of the Net Pension Liability OPEB RHIA 57
Schedule of Employer Contributions 58
Schedule of Changes in Total OPEB Liability and Related Ratios 59
TABLE OF CONTENTS
INTRODUCTORY SECTION
FINANCIAL SECTION
CITY OF SISTERS
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
PAGE
SUPPLEMENTARY INFORMATION:
Proprietary Funds:
Water Funds
Combining Statement of Net Position 62
Combining Statement of Revenues, Expenses and Changes in Net Position 63
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Water Fund 64
Water SDC Fund 65
Sewer Funds
Combining Statement of Net Position 67
Combining Statement of Revenues, Expenses and Changes in Net Position 68
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Sewer Fund 69
Sewer SDC Fund 70
Governmental Funds:
Combining Balance Sheet - By Fund Type 72
73
Non-Major Special Revenue Funds
Urban Renewal Project Fund 75
Capital Projects Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Street Fund SDC 77
Park SDC Fund 78
Non-Major Debt Service Funds:
Combining Balance Sheet 80
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 81
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
City Hall Debt Service Fund 82
Urban Renewal Debt Service Fund 83
OTHER INFORMATION
Additional Supporting Schedules:
Schedule of Long-Term Debt Transactions & Future Requirements 85-87
TABLE OF CONTENTS (Cont.)
CITY OF SISTERS
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
PAGE
Glossary 89
Net Position by Component (Last Ten Fiscal Years)90
Changes in Net Position (Last Ten Fiscal Years)91-92
Fund Balances, Governmental Funds (Last Ten Fiscal Years)93
Changes in Fund Balances, Governmental Funds (Last Ten Fiscal Years)94
Program Revenues by Function/Program (Last Ten Fiscal Years)95
Tax Revenue by Source, Governmental Funds (Last Ten Fiscal Years)96
Assessed Valuations and Actual Values of Taxable Property (Last Ten Fiscal Years)97
Property Tax Rates - Direct and Overtapping Governments (Last Ten Fiscal Years)98
Property Tax Levies and Collections – (Last Ten Fiscal Years)99
Principal Taxpayers – June 30, 2021 and June 30, 2012 100
Ratios of Outstanding Debt By Type – (Last Ten Fiscal Years)101
Ratios of General Bonded Debt Outstanding – (Last Ten Fiscal Years)102
Legal Debt Margin Information – (Last Ten Fiscal Years)103
Computation of Direct and Overlapping Debt 104
Historical Sewer Revenues and Expenditures – (Last Ten Years)105
Demographic and Economic Statistics – (Last Ten Fiscal Years)106
Principal Employers – (Current and Nine Years Ago)107
Full Time Equivalent City Employees by Function/Program – (Last Ten Fiscal Years)108
Operating Indicators by Function/Program – (Last Ten Fiscal Years)109
Capital Asset and Infrastructure Statistics by Function/Program – (Last Ten Fiscal Years) 110
REPORT ON LEGAL AND REGULATORY REQUIREMENTS
Independent Auditor's Report Required by Oregon State Regulations 112
STATISTICAL SECTION
TABLE OF CONTENTS (Cont.)
INTRODUCTORY SECTION
i
City of Sisters
520 E Cascade Avenue, Sisters, Oregon 97759
January 23, 2025
Honorable Mayor Michael Preedin,
Members of the Council,
and Citizens of the City of Sisters:
The Annual Comprehensive Financial Report (ACFR) of the City of Sisters, Oregon (the City) for
the fiscal year ended June 30, 2024 is hereby submitted.
This report presents the financial position of the City as of June 30, 2024 and the results of its
operations and cash flows for its proprietary fund types for the year then ended. The financial
statements and supporting schedules have been prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP) and meet the requirements of the
standards as prescribed by the Secretary of State. We believe the data, as presented, are accurate
in all material respects and presented in a manner designed to fairly set forth the financial position
and results of operations of the various funds of the City.
The accuracy of the City's financial statements and the completeness and fairness of their presen-
tation is the responsibility of City management. The City maintains a system of internal accounting
controls designed to provide a reasonable assurance that assets are safeguarded against loss or
unauthorized use and that financial records can be relied upon to produce financial statements in
accordance with GAAP. The concept of reasonable assurance recognizes that the cost of maintain-
ing the system of internal accounting controls should not exceed benefits likely to be derived.
GAAP requires that management provide a narrative introduction, overview, and analysis to ac-
company the basic financial statements in the form of a Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to compliment the MD&A and should be read in
conjunction with it. The City’s MD&A is located immediately following the report of the inde-
pendent auditors, beginning on page a.
Letter of Transmittal, Continued
ii
City Profile
The City of Sisters, incorporated in 1946, is located at the foot of the eastern slope of the Cascades in Central
Oregon, 136 miles southeast of Portland and 20 miles west of Bend and Redmond. It currently occupies 1.87
square miles and serves a population of 3,286. Rural subdivisions and outlying ranches contribute to a popu-
lation of “Sisters Country” in the range of 11,000 to 13,000 people.
The City of Sisters operates under the council-manager form of government. Policy-making and legislative
authority are vested in a governing council (City Council) consisting of the mayor and four other members, all
elected on a non-partisan basis to terms of two to four years. The City Council appoints a city manager, who
in turn appoints the heads of the various departments. The City Manager implements policy set by the City
Council and oversees city operations. The City provides municipal services including water and sewer utilities,
planning and community development, construction and maintenance of streets and sidewalks, parks and other
public facilities.
The City Council is required to adopt an annual budget before July 1 of each year. The budget serves as the
foundation for the City’s financial planning and control. The City also manages the Sisters Urban Renewal
District which is overseen by the City Council acting as the governing body for the Urban Renewal Agency.
Local Economy and Outlook
The popularity of Central Oregon has continued to bode well for Sisters, we saw slight increases in the popu-
lation, number of new business licenses issued, and transient room tax revenue.
Long-term Financial Planning
Effective financial management means the City focuses on financial sustainability and maintaining high ser-
vice levels. Continuing a process of conservative strategic spending, the City is in a good position financially
for the next fiscal year.
The City’s on-going financial planning includes annual goals, a five-year financial forecast and a five and ten-
year capital improvement plan based on various strategic plans and reports including a transportation system
plan, water and sewer master plans, water rights master plan, water conservation and management plan, and
system development charge updates. Developing and utilizing these plans, enhances the City’s ability to ad-
dress future needs in a proactive and measured approach.
Financial Information
Management of the City is responsible for establishing and maintaining internal controls designed to ensure
that the assets of the City are protected from loss, theft, misuse and to ensure that adequate accounting data are
compiled to allow for the preparation of the financial statements in conformity with generally accepted ac-
counting principles.
Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met.
The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits
likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by manage-
ment.
Letter of Transmittal, Continued
iii
Other Information
Independent Audit – The State of Oregon requires an annual audit of the books of accounts, financial records
and transactions of all administrative departments of the City by independent certified public accountants se-
lected by the City Council. The firm, Umpqua Valley Financial. LLC was selected. The auditor’s report on
the financial statements and required supplementary information is included in the Financial Section of this
report.
Acknowledgements
The preparation of the annual Financial Report was a combined effort of dedicated City staff. We wish to
thank everyone who made a contribution to this report for their support and expertise.
We would also like to express our appreciation to the Sisters City Council for their continued support and
leadership in managing the financial affairs of the City in a responsible and progressive manner.
Respectfully submitted,
Joseph O’Neill
Joseph O’Neill
Finance Director
iv
MICHAEL PREEDIN Mayor
PO BOX 39, SISTERS, OR 97759
ANDREA BLUM Councilor
PO BOX 39, SISTERS, OR 97759
GARY ROSS Councilor
PO BOX 39, SISTERS, OR 97759
JENNIFER LETZ Councilor
PO BOX 39, SISTERS, OR 97759
SUSAN COBB Councilor
PO BOX 39, SISTERS, OR 97759
JORDAN WHEELER City Manager
PO BOX 39, SISTERS, OR 97759
KERRY PROSSER Assistant City Manager
PO BOX 39, SISTERS, OR 97759
JOSEPH O'NEILL Finance Director
PO BOX 39, SISTERS, OR 97759
PAUL BERTAGNA Public Works Director
PO BOX 39, SISTERS, OR 97759
SCOTT WOODFORD Community Development Director
PO BOX 39, SISTERS, OR 97759
Officials of the City
ADMINISTRATION
CITY OF SISTERS
P.O. Box 39
Sisters, OR 97759
(541)323-5222
MAYOR & CITY COUNCIL
v
vi
FINANCIAL SECTION
A
Independent Auditors’ Report
To the Honorable Mayor and City Council
City of Sisters, Oregon
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and
the aggregate remaining fund information of the City of Sisters as of and for the year ended June 30, 2024, and the related notes to the
financial statements, which collectively comprise the City of Sisters’ basic financial statements, as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Sisters
as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Basis of Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 City of Sisters and to meet our other 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.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting princi-
ples 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 City of Sisters’ 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 objectives 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 generally accepted auditing
standards 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, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
B
In performing an audit in accordance with generally accepted auditing standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statement, 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 to design audit procedures that are appropriate in the circum-
stances, but not to express an opinion on the effectiveness of the City of Sisters’ 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 of Sisters’ ability to continue as a going concern for a reasonable time.
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 a-k, schedules of revenues, expenditures and changes in fund balances – budget and actuals on pages 49-50, and the pension and
OPEB schedules on pages 51-55 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 for placing the basic financial statements in an appropriate operational,
economic, or historical context.
We have applied certain limited procedures to the management’s discussion and analysis and the pension and OPEB schedules in ac-
cordance with the auditing standards generally accepted in the United States of America, which consisted principally of inquiries of
management about the methods of preparing the information and comparing the information for consistency with management’s re-
sponses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial state-
ments. 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.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic
financial statements. The schedules of revenues, expenditures and changes in fund balances – budget and actuals described on pages
49-50 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 schedules of revenues, expenditures and changes in fund balances – budget and
actuals have been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional pro-
cedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedules of revenues, expenditures and changes in
fund balances – budget and actuals are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Sisters’
basic financial statements. The supplementary information on pages 69-94 is presented for purposes of additional analysis and is not a
required part of the basic financial statements of the City of Sisters.
The supplementary information on pages 57-83 is the responsibility of management and was derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain other procedures, including comparing and recon-
ciling 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. In our opinion, the supplementary information is fairly stated in all material respects in relation to the financial
statements taken as a whole.
C
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory
and statistical sections and additional schedules listed in the Other Information section of the Table of Contents but does not include the
basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other infor-
mation, and we do not express an opinion of any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a
material inconsistency exists between the other information and the basis financial statements, or the other information otherwise ap-
pears 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 our report.
Reports on Other Legal and Regulatory Requirements
In accordance with the Minimum Standards for Audits of Oregon Municipal Corporations, we have issued our report dated January 23,
2025, on our consideration of the City of Sisters’ compliance with certain provisions of laws and regulations, including the provisions
of Oregon Revised Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our
testing of compliance and the results of that testing and not to provide an opinion on the City’s compliance.
Steve Tuchscherer, CPA
Umpqua Valley Financial, LLC
Roseburg, Oregon
January 23, 2025
a
MANAGEMENT’S
DISCUSSION
AND ANALYSIS
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
b
The management discussion and analysis of the City of Sisters, Oregon (the City) financial performance provides an over-
view of the City’s financial activities for the fiscal year that ended June 30, 2024. This discussion and analysis intend to
look at the City’s financial performance. Readers should also review the basic financial statements and notes to enhance
their understanding of the City’s financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for the fiscal year ended June 30, 2024, are as follows:
The City’s net position increased by $4,080,202, which represents a 7.46% increase from the previous year.
Total revenue for the City was $10,791,927. Which represents a 2.6% increase from the previous year, totaling
$276,638. General revenues accounted for $5,853,933 of revenue or 54.3% of all revenues. The program-specific
revenues in the form of charges for services accounted for $4,937,934 or 45.7% of total revenues.
The City had $6,711,725 in program expenses. Of the program expenses, $1,065,228 was for providing water ser-
vice and $1,048,330 was for providing sewer service.
In terms of governmental funds, the General Fund received a total of $3,987,580 in revenue. This was primarily
from property taxes, Intergovernmental funds, licenses and permits, and other sources of revenue. The Street Fund,
on the other hand, had $1,300,260 in revenues, which came mainly from franchise taxes, taxes and assessments,
and grants. Lastly, the Sisters’ other non-major governmental funds received $720,849 in revenues, mostly from
taxes, charges for services, and investment revenue.
Both the Water and Sewer Utilities had operating revenues from charges and fees. Water had $1,266,687, while
Sewer had $1,714,582.
OVERVIEW OF THE FINANCIAL STATEMENTS
Management’s Discussion and Analysis introduces the City’s basic financial statements. The basic financial statements
include: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial state-
ments. This report also includes additional supplementary information to supplement the basic financial statements.
Government-wide Financial Statements
The first of the government-wide statements is the Statement of Net Position. This is the City-wide statement of position
presenting information that includes all of the City’s assets and liabilities. 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. Evaluation of the
overall economic health of the City would extend to other non-financial factors such as the condition of buildings, and water
and sewer systems facilities.
The second government-wide statement is the Statement of Activities which reports how the City’s net position changed
during the current fiscal year. All current-year revenues and expenses are included regardless of when cash is received or
paid. An important purpose of the design of the Statement of Activities is to show the financial reliance of the City’s distinct
activities or functions of the City that are principally supported by user fee revenues, intergovernmental revenues from
grants, and property tax revenues. The governmental activities of the City include general government activities, street
construction and maintenance, police services, and providing resources for libraries, culture, and recreation. The proprietary
activities of the City include water and sewer utilities.
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
c
OVERVIEW OF THE FINANCIAL STATEMENTS (Cont.)
Fund Financial Statements
A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The
City uses fund accounting to ensure and demonstrate compliance with finance-related laws and regulations. Within the
basic financial statements, Fund Financial Statements focus on the City’s most significant funds rather than the City as a
whole. Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual
fund data for non-major funds is provided in the form of combining individual fund statements in a later section of this
report. The City reports two types of funds:
Governmental funds focus on how money flows into and out of those funds and the balances left at year-end available for
spending in future periods. Unlike government-wide financial statements, these statements report short-term fiscal account-
ability focusing on the use of spendable resources during the year and balances of spendable resources available at the end
of the fiscal year.
Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide
insight into the long-term impact of short-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 govern-
ment-wide statements to assist in understanding the differences between these two perspectives.
Budgetary comparison schedules are included in the basic financial statements for the General Fund, the Street Fund, and
the Parking District Fund. Budgetary comparison schedules for the other governmental funds can be found in a later section
of this report. These statements and schedules demonstrate compliance with the City’s adopted and final budget.
Proprietary funds are used to report the functions presented as business-type activities in the government-wide financial
statements, only in more detail. The City maintains one type of proprietary fund - enterprise funds. The City uses enterprise
funds to account for water and sewer operations. The proprietary fund financial statements provide separate information
for the Water Fund and Sewer Fund. Included in the Water Fund for the Proprietary Statements on pages 10-12 are the
budgetary Water Operating Fund and the Water System Reserve Fund. Included in the Sewer Fund are the budgetary Sewer
Operating Fund and the Sewer System Reserve Fund. These statements and schedules demonstrate compliance with the
City’s adopted and final budget.
Notes to the Financial Statements
The accompanying notes to the basic financial statements provide information essential to a full understanding of the gov-
ernment-wide and fund financial statements. The notes to the basic financial statements begin immediately following the
basic financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents as required supplementary
information budgetary comparison statements for the major and non-major funds. The required supplementary information
immediately follows the notes to the financial statements.
Other supplementary data includes combining statements, individual fund statements and schedules, and other schedules.
These statements and schedules immediately follow the required supplementary information in this report.
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
d
FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Recall that the Statement of Net Position provides the perspective of the City as a whole. Net position may serve over time
as a useful indicator of a government’s financial position.
The City’s net position at fiscal year-end is $58,809,946, reflecting an increase of 7.46%, totaling $4,080,202.
A portion of the City's net position reflects its investment in capital assets (e.g., land and improvements, buildings and
improvements, improvements other than buildings, vehicles, and machinery and equipment); less any related debt used to
acquire those assets that are still outstanding. The City uses these capital assets to provide services to its citizens; conse-
quently, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed
to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
The City's financial position is the product of several financial transactions including the net results of activities, the acqui-
sition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets
The following table provides a summary of the City’s net position for the current and the prior year.
Total
2024 2023 2024 2023 2024 2023
Assets
Current and Other Assets 13,010,066$ 11,313,234$ 12,564,459$ 11,393,387$ 25,574,525$ 22,706,621$
Capital Assets 14,767,477 14,432,500 25,224,648 24,870,022 39,992,125 39,302,522
Total Assets 27,777,543 25,745,734 37,789,107 36,263,409 65,566,650 62,009,143
Deferred Outflow of Resources 558,844 475,651 249,874 233,549 808,718 709,200
Liabilities
Current Liabilities 512,177 574,471 461,842 561,813 974,019 1,136,284
Noncurrent Liabilities 1,531,283 1,262,349 4,613,486 4,808,667 6,144,769 6,071,016
Total Liabilities 2,043,460 1,836,820 5,075,328 5,370,480 7,118,788 7,207,300
Deferred Inflow of Resources 382,270 602,488 64,364 178,810 446,634 781,298
Net Position
Net Investment in Capital Assets 14,512,816 14,432,500 20,945,644 24,870,022 35,458,460 39,302,522
Restricted 6,493,912 5,737,297 6,437,651 5,958,174 12,931,563 11,695,471
Unrestricted 4,903,929 3,612,280 5,515,994 119,472 10,419,923 3,731,752
Total Net Position 25,910,657$ 23,782,077$ 32,899,289$ 30,947,668$ 58,809,946$ 54,729,745$
Summary of Net Position
Governmental Activities Business-type Activities
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
e
See the chart below to gain an understanding of the City’s actual financial position and how each component relates to the
activities performed.
Changes in Net Position - The City's total revenues for the fiscal year ended June 30, 2024, were $10,791.927. The total
cost of all programs and services was $6,711,725.
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
f
The following table shows a comparative analysis of government-wide revenues, expenses, and changes in net position.
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Revenues
Program Revenues:
Charges for Services 1,162,206$ 1,736,946$ 3,013,471$ 3,318,671$ 4,175,677$ 5,055,617$
Operating Grants and Contributions - - - 72,000 - 72,000
Capital Grants and Contributions 507,475 162,119 254,782 165,500 762,257 327,619
Total Program Revenues 1,669,681 1,899,065 3,268,253 3,556,171 4,937,934 5,455,236
General Revenues:
Taxes 4,769,536 4,498,071 - - 4,769,536 4,498,071
Other 546,830 270,804 537,627 276,988 1,084,457 547,792
Total General Revenues 5,316,366 4,768,875 537,627 276,988 5,853,993 5,045,863
Total Revenues 6,986,047 6,667,940 3,805,880 3,833,159 10,791,927 10,501,099
Program Expenses
General Government 580,678 539,745 - - 580,678 539,745
Public Safety 760,422 778,036 - - 760,422 778,036
Public Works 163,704 147,863 - - 163,704 147,863
Highway and Streets 1,360,461 1,000,604 - - 1,360,461 1,000,604
Culture and Recreation 876,452 1,107,116 - - 876,452 1,107,116
Community Development 854,015 728,520 - - 854,015 728,520
Interest on Long-Term Debt 2,435 3,654 - - 2,435 3,654
Utility Services
Water Utilities - - 1,065,228 986,867 1,065,228 986,867
Sewer Utilities - - 1,048,330 1,233,533 1,048,330 1,233,533
Total Program Expenses 4,598,167 4,305,538 2,113,558 2,220,400 6,711,725 6,525,938
Transfers (259,300) 20,900 259,300 (20,900) - -
Change in Net Position 2,128,580 2,383,302 1,951,622 1,591,859 4,080,202 3,975,161
Net Position - Beginning 23,782,077 20,942,913 30,947,667 29,355,809 54,729,744 50,298,722
Net Position - Ending 25,910,657$ 23,326,215$ 32,899,289$ 30,947,668$ 58,809,947$ 54,273,883$
Summary of Changes in Net Position
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
g
The Statement of Activities shows the cost of program services and the charges for services, grants, and contributions
offsetting those services. The following table shows, for governmental activity, the total cost of the seven major functional
activities of the City. The table also shows each function’s net cost (total cost less charges for services generated by the
activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was
placed on the City’s taxpayers by each of these functions.
This graph represents the cost of the City’s Program expenses by governmental activities.
Total Cost of Services Net (Cost) Profit of Services
2023-24 2022-23 2023-24 2022-23
General Government 580,678$ 539,745$ (438,953)$ (111,804)$
Public Safety 760,422 778,036 (753,948) (770,727)
Public Works 163,704 147,863 563,066 1,098,717
Highway and Streets 1,360,461 1,000,604 (638,543) (838,485)
Culture and Recreation 876,452 1,107,116 (833,252) (1,066,717)
Community Development 854,015 728,520 (824,421) (713,803)
Interest Expense 2,435 3,654 (2,435) (3,654)
Total Program Expenses 4,598,167$ 4,305,538$ (2,928,486)$ (2,406,473)$
Governmental Activities
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
h
The following chart analyzes the revenue between governmental activities and business-type activities from the prior year
to the current year.
This graph represents the cost of the City’s Program expenses by business-type activities.
Total Cost of Services
2023-24 2022-23 2023-24 2022-23
Water Utilities 1,065,228$ 986,867$ 456,459$ 587,833$
Sewer Utilities 1,048,330$ 1,233,533$ 698,236$ 747,938$
Total Program Expenses 2,113,558$ 2,220,400$ 1,154,695$ 1,335,771$
Business-Type Activities
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
i
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal require-
ments. The focus of the City’s governmental funds is to provide information on short-term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City’s financing requirements. Unreserved fund balance
may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year.
Governmental Funds
As the City completed the year, its governmental funds reported a combined fund balance of $12,097,983, an increase of
$1,653,606. The fund balance constitutes restricted, committed, assigned, and unassigned amounts. Of the current fund
balances, $5,514,423 is restricted, $1,306,625 is committed for various programs including debt service, and $5,276,935 is
unassigned and available for spending at the City’s discretion.
The following is a comparison of current expenditures by the programs of the governmental funds.
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
j
FINANCIAL ANALYSIS OF THE CITY’S FUNDS (Cont.)
Proprietary Funds
The City’s enterprise funds reported an unrestricted net position of $5,515,994, an increase of $832,205. The enterprise
funds also report $6,433,150 in restricted net position for systems development, $4,501 in restricted net position for net
OPEB asset, and $20,945,644 in net position invested in capital assets, net of related debt.
The following is a comparison of current expenses by program of proprietary funds.
Budgetary Highlights
During the fiscal year, the General Fund resources were budgeted at $3,721,147. However, actual resources of $3,987,580
were available, which is $266,433 more than was budgeted. The General Fund expenditures budget was underspent by
$1,885,632. As a result, the ending fund balance was greater than what was budgeted by $2,152,065.
During the fiscal year, the balance of the Water Fund increased by $687,670, while the balance of the Sewer Fund rose by
$99,559. The Water Fund operated within its budgeted appropriations; however, the Sewer Fund exceeded its budgeted
appropriations by $90,970. Furthermore, the actual resources for both the Water Fund and Sewer Fund fell short of the
budget by $153,634 and $2,738,356, respectively.
CITY OF SISTERS
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2024
Unaudited
k
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2024, the City has made a total investment, before accounting for accumulated depreciation, of $57,984,566
in capital assets. This investment encompasses a variety of assets, including buildings, land, art and sculptures, vehicles,
water and sewer utility systems, construction in progress, and other equipment. During the current fiscal year, there were
additions amounting to $2,295,328, of which $313,884 was construction in progress added to depreciable assets and re-
moved from non-depreciable assets. Total depreciation expense of $1,291,841 is reported between the governmental activ-
ities and business-type activities.
Additional information on the City’s capital assets can be found in the Capital Asset Note of the Notes to the Basic Financial
Statements section of this report.
Long-Term Debt
As of June 30, 2024, the City had a total long-term debt of $4,279,004 that's outstanding. During the fiscal year, the total
amount paid towards the existing debt was $505,614, out of which $332,314 was paid towards the principal and $173,300
was paid towards the interest. For more details on the City’s long-term debt, please refer to the Long-Term Debt Note in
the Notes to the Basic Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The budget for the fiscal year 2024-2025 has been designed to prioritize multiple key areas that are critical for the city's
well-being and health. These areas include managing growth, preserving our livability, enhancing sustainability, and pro-
moting community involvement.
The City Council established a set of goals organized into six categories focused on improving Sisters.
Housing, livability, and Growth
Wildfire Mitigation and Community Resiliency
Economic Development
Essential Infrastructure
The approved budget for the fiscal year 2024-2025 has been determined to be $33,036,541, reflecting an increase of
$2,320,063 from the previous year. The majority of the appropriations have been allocated to the major funds, such as
$5,619,349 for the General Fund, $2,079,712 for the Water Fund, $2,900,789 for the Street Fund, and $2,111,581 for the
Sewer Fund. The FY 2024/25 Capital Budget also includes $1,495,000 for water infrastructure funded by the capital
reserve balances in the Water Fund and Water SDC Fund. The total unappropriated reserve amounts to $17,100,261.
Permanent Levy – Property Tax Rate: $2.6417 per $1000 of assessed value for permanent rate tax.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the
City’s finances and to demonstrate the City’s accountability for the resources it receives. If you have any questions about
this report or need additional information, contact the City of Sisters City Hall at 520 E. Cascade Ave., Sisters, Oregon.
- 1 -
BASIC FINANCIAL
STATEMENTS
Government-Wide
Financial Statements
The accompanying notes to the basic financial statements are an integral part of this statement.
- 2 -
Governmental
Activities
Business-Type
Activities Total
ASSETS:
Cash and Cash Equivalents 10,885,026$ 5,797,163$ 16,682,189$
Receivables:
Accounts, net 92,062 216,315 308,377
Property Tax 42,751 - 42,751
Franchise Taxes 57,799 - 57,799
Intergovernmental 97,071 - 97,071
Leases 238,322 - 238,322
Other 142,746 - 142,746
Inventory - 56,628 56,628
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents 1,444,224 6,489,118 7,933,342
Deposits - 734 734
Net OPEB Asset - RHIA 10,065 4,501 14,566
Capital Assets, Non-Depreciable 2,120,547 5,462,632 7,583,179
Capital Assets, Depreciable, Net 12,646,930 19,762,016 32,408,946
Total Assets 27,777,543 37,789,107 65,566,650
DEFERRED OUTFLOW OF RESOURCES:
Pension Related Deferrals 557,761 249,389 807,150
OPEB Related Deferrals - RHIA and CIS 1,083 485 1,568
Total Deferred Outflows of Resources 558,844 249,874 808,718
LIABILITIES:
Current Liabilities:
Accounts Payable 227,827 104,063 331,890
Accrued Compensated Absences 43,179 23,485 66,664
Unearned Revenue - 2,994 2,994
Deposits 197,171 75,300 272,471
Current Portion of Long-Term Liabilities:
Bonds Payable 44,000 256,000 300,000
Total Current Liabilities 512,177 461,842 974,019
Long-Term Liabilities:
Noncurrent Portion of Long-Term Liabilities:
Bonds Payable, Net of Premium 210,661 4,023,004 4,233,665
Net Pension Liability 1,280,423 572,508 1,852,931
Net OPEB Liability - CIS 40,199 17,974 58,173
Total Long-Term Liabilities 1,531,283 4,613,486 6,144,769
Total Liabilities 2,043,460 5,075,328 7,118,788
DEFERRED INFLOW OF RESOURCES:
Pension Related Deferrals 130,683 58,432 189,115
OPEB Related Deferrals - RHIA and CIS 13,265 5,932 19,197
Lease Receivables Related Deferrals 238,322 - 238,322
Total Deferred Inflow of Resources 382,270 64,364 446,634
NET POSITION:
Net Investment in Capital Assets 14,512,816 20,945,644 35,458,460
Restricted for:
Debt Service 170,594 - 170,594
Public Works 4,240,793 - 4,240,793
Systems Development 1,273,630 6,433,150 7,706,780
Net OPEB Asset 10,065 4,501 14,566
Urban Renewal Projects 798,830 - 798,830
Unrestricted 4,903,929 5,515,994 10,419,923
Total Net Position 25,910,657$ 32,899,289$ 58,809,947$
CITY OF SISTERS
For the Fiscal Year Ended June 30, 2024
- 3 -
Net
(Expense)
Operating Capital Revenue
Charges Grants Grants and
for and and Change in
(Expenses) Services Contributions Contributions Net Position
GOVERNMENTAL ACTIVITIES:
General Government 580,678$ 141,725$ -$ -$ (438,953)$
Public Safety 760,422 6,474 - - (753,948)
Public Works 163,704 726,770 - - 563,066
Highway and Streets 1,360,461 214,443 - 507,475 (638,543)
Culture and Recreation 876,452 43,200 - - (833,252)
Community Development 854,015 29,594 - - (824,421)
Interest on Long-Term Debt 2,435 - - - (2,435)
Total Governmental Activities 4,598,167 1,162,206 - 507,475 (2,928,486)
BUSINESS-TYPE ACTIVITIES:
Water Utilities 1,065,228 1,266,905 - 254,782 456,459
Sewer Utilities 1,048,330 1,746,566 - - 698,236
Total Business-type Activities 2,113,558 3,013,471 - 254,782 1,154,695
Total Primary Government 6,711,725$ 4,175,677$ -$ 762,257$ (1,773,791)$
Governmental Business-type
Activities Activities Total
CHANGES IN NET POSITION:
Net (expense) revenue (2,928,486)$ 1,154,695$ (1,773,791)$
General Revenues:
Property Taxes, levied for general purposes 1,609,421 - 1,609,421
Property Taxes, levied for debt service 485,254 - 485,254
Intergovernmental Tax Turnovers 185,905 - 185,905
Franchise Taxes 923,419 - 923,419
Other Taxes and Assessments 1,565,537 - 1,565,537
Interest and Investment Earnings 546,830 537,627 1,084,457
Subtotal - General Revenues 5,316,366 537,627 5,853,993
Interfund Transfers (259,300) 259,300 -
Total general revenues, special items, and transfers 5,057,066 796,927 5,853,993
Change in Net Position 2,128,580 1,951,622 4,080,202
Net Position, July 1, 2023 23,782,077 30,947,667 54,729,744
Net Position, June 30, 2024 25,910,657$ 32,899,289$ 58,809,947$
CITY OF SISTERS
- 4 -
BASIC FINANCIAL
STATEMENTS
Governmental Fund
Financial Statements
The accompanying notes to the basic financial statements are an integral part of this statement.
- 5 -
CITY OF SISTERS
BALANCE SHEET
GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2024
ASSETS:
Cash and Cash Equivalents 5,515,285$ 1,705,535$ 337,201$ 2,529,622$ 2,241,607$ 12,329,250$
Total Assets 5,738,967$ 1,826,439$ 415,150$ 2,529,622$ 2,251,501$ 12,761,679$
Total Liabilities 346,421 63,208 - 15,369 - 424,998
DEFERRED INFLOWS OF RESOURCES:
Delinquent Property Tax Revenue Not Available 28,112 - - - 8,447 36,559
Other Deferred Inflows 87,499 36,691 77,949 - - 202,139
Total Deferred Inflows of Resources 115,611 36,691 77,949 - 8,447 238,698
FUND BALANCES:
Restricted for:
Public Works - 1,726,540 - 2,514,253 - 4,240,793
Capital Projects - - - - 1,273,630 1,273,630 Committed for:
Debt Service - - - - 170,594 170,594
Urban Renewal Projects - - - - 798,830 798,830
Community Development Projects - - 337,201 - - 337,201
Total Fund Balances 5,276,935 1,726,540 337,201 2,514,253 2,243,054 12,097,983
Total Liabilities, Deferred Inflows
5,738,967$ 1,826,439$ 415,150$ 2,529,622$ 2,251,501$ 12,761,679$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES:
The accompanying notes to the basic financial statements are an integral part of this statement.
- 6 -
Total Fund Balances - Governmental Funds 12,097,983$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the governmental funds.
The cost of the assets 21,965,661$
The accumulated depreciation (7,198,184)
Net Value of Capital Assets 14,767,477
Net pension/OPEB assets reported in governmental activities are not financial
resources and therefore are not reported in the governmental funds. 10,065
Certain receivables that will not be available to pay for current-period
expenditures are deferred in the governmental funds:
Property Taxes 36,559
Assessments 202,139
Accrued Compensated Absences are not recorded in the governmental funds.(43,179)
Pension and OPEB related deferred inflows and outflows of resources are
not reported in the governmental funds:
Pension and OPEB Related Deferred Outflows 558,844
Pension and OPEB Related Deferred Inflows (143,948)
Long-term liabilities are not due and payable in the current period and therefore
are not reported in the governmental funds:
Pension related liabilities (1,280,423)
OPEB related liabilities (40,199)
Bonds Payable (254,661)
Net Position of Governmental Activities 25,910,657$
CITY OF SISTERS
RECONCILIATION OF THE BALANCE SHEET -- GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
For the Fiscal Year Ended June 30, 2024
The accompanying notes to the basic financial statements are an integral part of this statement.
- 7 -
CITY OF SISTERS
STATEMENT OF REVENUES, EXPENDITURES,
GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2024
REVENUES:
Taxes and Assessments 2,776,890$ 288,713$ -$ -$ 485,254$ 3,550,857$
Intergovernmental 185,905 - - - - 185,905
Franchise Taxes - 923,419 - - - 923,419
SDC Charges - - - 214,443 - 214,443
Licenses & Permits 581,224 - - - - 581,224
Charges for Service 43,200 - - - 145,546 188,746
Fines and Forfeitures 6,474 - - - - 6,474
Investment Revenue 252,162 77,246 14,797 112,576 90,049 546,830
Grants - 10,882 - - - 10,882
Other Revenue 141,725 - 29,594 - - 171,319
Total Revenues 3,987,580 1,300,260 44,391 327,019 720,849 6,380,099
EXPENDITURES:
Current:
General Government 544,887 - - - 7,765 552,652
Public Safety 733,963 - - - - 733,963
Public Works 163,704 - - - - 163,704
Highway and Streets - 838,065 - 130,468 - 968,533
Culture and Recreation 796,135 - - - 6,125 802,260
Community Development 854,015 - - - - 854,015
Debt Service:
Principal - - - - 40,000 40,000
Interest - - - - 10,320 10,320
Capital Outlay 33,206 308,540 - - - 341,746
Total Expenditures 3,125,910 1,146,605 - 130,468 64,210 4,467,193
Excess (Deficiency) of Revenues
Over Expenditures 861,670 153,655 44,391 196,551 656,639 1,912,906
Interfund Transfers In 500,000 - - 550,300 1,050,300
Interfund Transfers (Out)(802,600) (7,000) - (500,000) (1,309,600)
Total Other Financing Sources (Uses)(302,600) (7,000) - - 50,300 (259,300)
Net Change in Fund Balances 559,070 146,655 44,391 196,551 706,939 1,653,606
Fund Balances - July 1, 2023 4,717,865 1,579,885 292,810 2,317,702 1,536,115 10,444,377
Fund Balances - June 30, 2024 5,276,935$ 1,726,540$ 337,201$ 2,514,253$ 2,243,054$ 12,097,983$
- 8 -
Net Changes in Fund Balances - Total Governmental Funds 1,653,606$
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlay as expenditures. However, in the
Statement of Activities, the cost of those assets are allocated over their
estimated useful lives as depreciation expense.
Expenditures for capitalized assets 472,215$
Less assets acquired with contributed capital 496,593
Less current year depreciation (633,831)
334,977
Some revenues will not be collected for several months after the City's fiscal
year end and are therefore not considered "available" revenues in the
governmental funds, instead these funds are shown as deferred revenue.
However, these funds are recorded as revenue in the Statement of Activities.
The changes in amounts deferred are as follows:
Property Taxes 7,947
Other 101,408
109,355
Expense accruals in the governmental funds do not include interest payable.
The change in interest payable from prior year to currnat year is 884
Premium and Discounts related Debt issuance are amortized over the life of the debt.7,001
Repayment of long-term debt principal amounts are expenditures in the
governmental funds, but the repayment reduces long-term debt liabilities
in the Statement of Net Position.40,000
Adjustment for pension costs on accrued basis (17,243)
Change in Net Position of Governmental Activities 2,128,580$
CITY OF SISTERS
RECONCILIATION OF THE STATEMENT
OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2024
- 9 -
BASIC FINANCIAL
STATEMENTS
Proprietary Fund
Financial Statements
The accompanying notes to the basic financial statements are an integral part of this statement.
- 10 -
Total
Water Sewer Enterprise
Utility Utility Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 3,244,712$ 2,552,451$ 5,797,163$
Receivables, Net 90,710 125,605 216,315
Inventory 56,628 - 56,628
Total Current Assets 3,392,050 2,678,056 6,070,106
Restricted Cash and Cash Equivalents
Capital Assets, Non-Depreciable 362,636 5,099,996 5,462,632
Capital Assets, Depreciable, Net 8,606,970 11,155,047 19,762,016
Total Noncurrent Assets 11,945,385 19,773,617 31,719,001
Total Assets 15,337,435 22,451,673 37,789,107
DEFERRED OUTFLOW OF RESOURCES:
Pension Related Deferrals 129,940 119,449 249,389
OPEB Related Deferrals - RHIA and CIS 253 232 485
Total Deferred Outflow of Resources 130,193 119,681 249,874
LIABILITIES:
Current Liabilities:
Accounts Payable 21,242 82,821 104,063
Accrued Compensated Absences 11,970 11,515 23,485
Deposits 72,300 3,000 75,300
Unearned Revenue - 2,994 2,994
Current Portion of Long-Term Liabilities:
Bond Payable - 256,000 256,000
Total Current Liabilities 105,512 356,330 461,842
Total Liabilities 413,173 4,662,155 5,075,328
DEFERRED INFLOW OF RESOURCES:
Pension Related Deferrals 30,445 27,987 58,432
OPEB Related Deferrals _RHIA and CIS 3,091 2,841 5,932
Total Deferred Inflow of Resources 33,536 30,828 64,364
NET POSITION:
Net Investment in Capital Assets 8,969,606 11,976,039 20,945,644
Restricted for Systems Development 2,967,061 3,466,089 6,433,150
Restricted for Net OPEB Asset 2,345 2,156 4,501
Unrestricted 3,081,908 2,434,086 5,515,994
Total Net Position 15,020,920$ 17,878,370$ 32,899,289$
CITY OF SISTERS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2024
The accompanying notes to the basic financial statements are an integral part of this statement.
- 11 -
Total
Water Sewer Enterprise
Utility Utility Funds
OPERATING REVENUES:
Charges for Services & Fees 1,266,687$ 1,714,582$ 2,981,269$
Other Revenue 218 31,984 32,202
Total Operating Revenues 1,266,905 1,746,566 3,013,471
OPERATING EXPENSES:
Personnel Services 370,433 311,917 682,350
Materials and Supplies 403,290 260,579 663,869
Depreciation Expense 291,505 366,505 658,010
Total Operating Expenses 1,065,228 939,001 2,004,229
Operating Income (Loss)201,677 807,565 1,009,242
NON-OPERATING REVENUES (EXPENSES):
Investment Revenue 266,300 271,327 537,627
Interest Expense - (109,329) (109,329)
Total Non-Operating Revenues (Expenses)266,300 161,998 428,298
Income Before Other Revenues, Expenses, and Transfers 467,977 969,563 1,437,540
CAPITAL CONTRIBUTIONS AND TRANFERS:
Capital Contributions 254,782 - 254,782
Transfers to Other Funds (8,600) (73,100) (81,700)
Transfers from Other Funds 280,000 61,000 341,000
Total Capital Contributions and Transfers 526,182 (12,100) 514,082
Changes in Net Position 994,159 957,463 1,951,622
Net Position, July 1, 2023 14,026,761 16,920,907 30,947,667
Net Position, June 30, 2024 15,020,920$ 17,878,370$ 32,899,289$
CITY OF SISTERS
STATEMENT OF REVENUES, EXPENSES,
PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2024
AND CHANGES IN FUND NET POSITION
- 12 -
Total
Water Sewer Enterprise
Utility Utility Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from User Charges 1,196,636$ 1,735,034$ 2,931,670$
Cash Payments for Employee Services (376,558) (336,637) (713,195)
Cash Payments to Suppliers (412,630) (262,556) (675,186)
Net Cash Provided (Used) by Operating Activities 407,448 1,135,841 1,543,289
Transfer to Other Funds (8,600) (73,100) (81,700)
Transfer from Other Funds 280,000 61,000 341,000
Net Cash Provided (Used) by Non-capital
Financing Activities 271,400 (12,100) 259,300
Acquisition of Capital Assets (56,041) (701,814) (757,855)
Principal Paid on Long Term Debt - (245,000) (245,000)
Interest Paid on Long Term Debt - (162,980) (162,980)
Net Cash Provided (Used) by Capital and
Related Financing Activities (56,041) (1,109,794) (1,165,835)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment Income 266,300 271,327 537,627
Net Cash Provided (Used) by Investing Activities 266,300 271,327 537,627
Cash and Cash Equivalents at July 1, 2023 5,328,305 5,783,595 11,111,900
Cash and Cash Equivalents at June 30, 2024 6,217,412$ 6,068,869$ 12,286,281$
Reconciliation of income (loss) from operations
to net cash provided (used) by operating activities:
Income (loss) from operations 201,677$ 807,565$ 1,009,242$
Adjustments to reconcile income (loss) from operations to
net cash provided (used) by operating activities:
Depreciation 291,505 366,505 658,010
Change in assets and liabilities:
Decrease (increase) in accounts receivable 5,457 (4,932) 525
Decrease (increase) in inventory (359) - (359)
Increase (decrease) in deposits (75,726) (6,600) (82,326)
Increase (decrease) in payables (8,981) (1,977) (10,958)
Increase (decrease) in OPEB related accounts 2,285 1,426 3,711
Increase (decrease) in pension related accounts (8,410) (26,146) (34,556)
Net cash provided (used) by operating activities 407,448$ 1,135,841$ 1,543,289$
CITY OF SISTERS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2024
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES:
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
- 13 -
BASIC FINANCIAL
STATEMENTS
Notes to the Basic
Financial Statements
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
- 14 -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The City of Sisters, Oregon (the City) is organized under the general laws of the State of Oregon. The City Council,
composed of the Mayor and four Council members, comprises the legislative branch of the City. Individual departments
are under the direction of the City Manager, who is appointed by the City Council.
The financial statements of the City have been prepared in accordance with Generally Accepted Accounting Principles
(GAAP). GAAP Statements include all relevant Governmental Accounting Standards Board (GASB) pronouncements.
The following is a summary of the more significant policies of the City:
Reporting Entity In determining the financial reporting entity, the City of Sisters complies with Governmental Accounting Standards Board
Statement 14 as amended, “The Financial Reporting Entity.” The criteria for including organizations as component units
within the City’s reporting entity, include whether 1) the organization is legally separate (can sue and be sued in their
name); 2) the City holds the corporate powers of the organization; 3) the City appoints a voting majority of the organiza-
tion’s board; 4) the City can impose its will on the organization; 5) the organization has the potential to impose a financial
benefit/burden on the City; and 6) there is fiscal dependency by the organization on the City. Based on the aforementioned
criteria, the City of Sisters has one component unit, the Urban Renewal Agency.
Blended Component Unit: The Agency was formed to undertake urban renewal projects and activities pursuant to the
City’s redevelopment plan. The Board of Directors of the Agency consists of the Mayor and the four elected City Council
members. The City is required to certify to the County Assessor any incremental taxes to be levied for the benefit of the
Agency. Since the City Council has acted as its governing board, it has been included as a blended component unit in
financial statements. The City can significantly influence the operations of the Agency and provides financial benefits.
Complete financial statements for the Agency may be obtained at the City’s administrative offices at 520 E. Cascade
Avenue, Sisters, Oregon 97759.
Basis of Presentation
Government-wide Statements: The statement of net position and the statement of activities display information about the
City as a whole. These statements include the financial activities of the overall City. Eliminations have been made to
minimize the double counting of internal activities. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on
fees and charges for support. Direct expenses are those that are specifically associated with a program of function and,
therefore, are clearly identifiable to a particular function. 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, includ-
ing all taxes, are presented as general revenues. The comparison of direct expenses with program revenues identifies the
extent to which each governmental function is self-financing or draws from the general revenues of the City.
The statement of activities demonstrates the degree to which the direct expenses of a given program are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by
a given program and 2) operating or capital grants and contributions that are restricted to meeting the operational or capital
requirements of a particular program. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Net position is reported as restricted when constraints placed on net position use are either externally restricted, imposed
by creditors (such as through grantors, contributors, or laws) or through constitutional provisions or enabling resolutions.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT):
Basis of Presentation (Cont.)
Fund Financial Statements: The fund financial statements provide information about the city’s funds including those of
a fiduciary nature, if applicable. Separate statements for each fund category – governmental and proprietary – are pre-
sented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
All remaining governmental funds are aggregated and reported as other governmental funds.
Governmental Funds are those funds through which most governmental functions typically are financed. The measure-
ment focus of governmental funds is on the sources, uses, and balance of current financial resources. The City reports the
following major governmental funds:
General Fund - The General Fund is the main operating fund of the City. All financial resources, except those
required to be accounted for in another fund, are accounted for in the General Fund. All general tax revenues and
other receipts that are not restricted by law or contractual agreement to some other funds are accounted for in this
fund. General operating expenditures, fixed charges, and capital improvement costs that are not paid through
other funds are paid by the General Fund.
Street Fund - This fund accounts for activities related to the construction and maintenance of City streets. Reve-
nues for this fund come from state highway taxes and grants.
Additionally, the City also reports non-major funds within the governmental fund type.
Special Revenue Funds are used to account for proceeds of specific revenue sources that are legally restricted to
expenditures for specified purposes.
Capital Projects Funds are used to account for financial resources that are restricted, committed, or assigned to
expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital as-
sets. Capital Project Funds exclude those types of capital-related outflows financed by proprietary funds.
Debt Service Funds are used to account for the financial resources that are restricted, committed, or assigned to
expenditure for payment made for principal and interest on long-term debt for governmental funds.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.):
Basis of Presentation (Cont.)
Proprietary Funds are accounted for using the economic resources measurement focus and the accrual basis of account-
ing. The accounting objectives are determinations of net income, financial position, and cash flow. All assets and liabilities
are included in the Statement of Net Position. The City has presented the following major proprietary funds:
Water Fund - The Water Fund is used to account for the provision of water services to the residents of the City.
Activities of the fund include administration, operations and maintenance of the water system and billing and
collection activities.
Sewer Fund - The Sewer Fund is used to account for the provision of sewer services to the residents of the City.
Activities of the fund include administration, operations and maintenance of the sewer system and billing and
collection activities.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and ex-
penses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. Operating expenses for the proprietary funds include the cost of personal and con-
tractual services, supplies and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as non-operating revenues and expenses.
Measurement Focus/Basis of Accounting
Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis
of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless
of when the related cash flows take place. Non-exchange transactions, in which the city receives value without giving
equal value in exchange, include property taxes, grants, entitlements and donations. On the accrual basis of accounting
revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from grants, entitle-
ments, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Under
terms of grant agreements, the city funds certain programs by a combination of specific cost-reimbursement grants and
general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net position avail-
able to finance the program. It is the city’s policy to first apply cost-reimbursement grant resources to such programs and
then general revenues.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when
susceptible to accrual (when they are measurable and available). “Measurable” means the amount of the transaction can
be determined and “available” means collected within the current period or expected to be collected soon enough thereafter
to be used to pay liabilities of the current period. The city considers property taxes as available if they are collected within
60 days after year-end. A one-year availability period is used for revenue recognition for all other governmental fund
revenues. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general
long-term debt, which is recognized when the obligations are expected to be liquidated with expendable available financial
resources. Property taxes, interest and special assessments are susceptible to accrual. Other receipts and taxes become
measurable and available when the cash is received by the government and are recognized as revenue at that time. Enti-
tlements and shared revenues are recorded at the time of receipt or earlier if the “susceptible to accrual” criteria are met.
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other
grant requirements have been met. Capital asset acquisitions are reported as expenditures in the governmental funds and
proceeds from general long-term debt and acquisitions under capital leases are reported as other financing sources.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.):
Measurement Focus/Basis of Accounting (Cont.)
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and ex-
penses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the city’s Sewer and Water Funds are charges to
customers for sales and services. These funds also recognize fees intended to recover the cost of connecting new customers
to the city’s utility systems as operating revenue. Operating expenses for enterprise funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as non-operating revenues and expenses.
Budgeting
A budget is prepared for each city fund in accordance with the modified accrual basis of accounting and legal requirements
set forth in the Oregon local budget law. The resolution authorizing appropriations for each fund sets the level by which
expenditures cannot legally exceed appropriations. Total personnel services, materials and services, capital outlay, con-
tingencies, and debt service by fund are the levels of control. The detail budget document, however, is required to contain
more specific, detailed information for the above-mentioned expenditure categories. Appropriations lapse at June 30.
Unexpected additional resources may be added to the budget by a supplemental budget and appropriations resolution. A
supplemental budget may require hearings before the public, publications in newspapers, and approval by the city council.
Original and supplemental budgets may be modified by using appropriations transfers between the levels of control. Such
transfers require approval by the city council. The city does not utilize encumbrance accounting for budgeted funds.
Cash and Investments
For purposes of the statement of cash flows, cash and cash equivalents include cash on hand, checking, savings and money
market accounts and any short-term, highly liquid investments with initial maturity dates of three months or less.
The City has adopted an investment policy requiring compliance with Oregon statutes, which authorizes the City to invest
in obligations of the United States, the agencies and instrumentalities of the United States and the State of Oregon, and
numerous other investment instruments.
The City’s investments may consist of time certificates of deposit, banker’s acceptances, commercial paper, U.S. Govern-
ment Agency securities, and the State of Oregon Treasurer’s Local Government Investment Pool (LGIP). The City’s
investments are reported at fair value at year-end. Changes in the fair value of investments are recorded as investment
earnings. The LGIP is stated at cost, which approximates fair value. The fair value of the LGIP is the same as the City’s
value in the pool shares.
The Oregon State Treasury administers the LGIP. It is an open-ended, non-load diversified portfolio offered to any
agency, political subdivision, or public corporation of the State that by law is made the custodian of, or has control of, any
fund. LGIP is included in the Oregon Short Term Fund (OSTF) which was established by the State Treasurer.
In seeking to best serve local governments of Oregon, the Oregon legislature established the Oregon Short-Term Fund
Board. The purpose of the Board is to advise the Oregon State Treasury in the management and investment options of the
LGIP.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.):
Accumulated Compensated Absences
Accumulated vested vacation and compensatory pay is accrued as it is earned. For governmental funds, compensation not
expected to be liquidated with the current resources are reported as liabilities in the government-wide statements and
represent a reconciling item between the fund level and government-wide presentations. In business-type funds both the
current and long-term liabilities are recorded. Sick pay, which does not vest, is recognized in applicable funds when leave
is taken.
Receivables
Amounts due from individuals and organizations are recorded as receivables at year-end. These amounts include charges
for services rendered, or for goods and material provided by the City. All receivables are expected to be collected. Ac-
cordingly, receivables are reported at the gross amount without an allowance for uncollectible accounts.
Receivables are also recognized for property taxes and intergovernmental grants. Property taxes receivable consist of
uncollected taxes levied and payable at the end of the fiscal year. All taxes are considered collectible. Consequently, no
allowance for uncollectible taxes has been established. In the governmental fund financial statements, property taxes not
collected within sixty days of the end of the fiscal year are reported as a deferred inflow or resources.
Deferred Inflows/Outflows of Resources:
In addition to assets, the statement of financial position will sometimes report 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 a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
Currently, the City has two items that qualifies for reporting in this category, deferred pension contributions and OPEB
related deferrals.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows
of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net
assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The City has two items that qualifies for reporting in this category, deferred earnings on pension assets and OPEB related
deferrals.
In the governmental funds balance sheet, a different category of deferred inflow of resources, delinquent property tax
revenue not available, is reported. Property taxes levied and considered receivable at the end of the fiscal year, but not
collected within sixty days of the end of the fiscal year are reported in this category. These amounts are recognized as an
inflow of resources (revenue) in the period that the amounts become available.
Inventory
Inventories are valued at cost, which approximates market value, using the first-in/first-out (FIFO) method. The costs of
governmental fund-type inventories are recorded as expenditures when purchased. The costs of proprietary fund type
inventories are recorded as expenditures when consumed rather than when purchased.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.):
Restricted Assets and Liabilities
Certain resources are set aside and restricted for future bond payments and related liability; these resources are segregated
in the statement of net position and are classified as restricted assets on the Statement of Net Position because their use is
limited. For the fiscal year ended June 30, 2024, the City had sinking funds for debt service of $170,594 in restricted
assets.
Long-Term Debt
All bonds and capital leases to be paid from governmental and business-type resources are reported as liabilities in the
government-wide financial statements. Amounts of the long-term debt due within the following fiscal year are included
in the current liabilities section of the Statement of Net Position.
Long-term debt for governmental funds is not reported as a liability in the fund financial statements. The debt proceeds
are reported as other financing sources and payment of principal and interest reported as expenditures. The accounting for
proprietary funds is the same in fund financial statements as it is in the government-wide statements.
Capital Assets
Capital assets, which include property, plant, and equipment, are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements and in the fund financial statements for proprietary funds.
Purchased or constructed capital assets are reported at cost or estimated cost when the original cost is not available. Do-
nated capital assets or donated works of art and similar items are valued at their acquisition value. Capital assets received
in a service concession arrangement are valued at acquisition value. Maintenance and repairs of capital assets that do not
significantly extend the useful life of an asset are not capitalized but rather are charged to expenditures in the funds.
Assets capitalized have an original cost of $5,000 or more and over one year of useful life. Depreciation has been calcu-
lated on each class of depreciable property using the straight-line method.
The estimated useful lives are as follows:
Buildings and Improvements 10-50 years
Machinery and Equipment 3-20 years
Vehicles 5-10 years
Water and Sewer Systems 20-50 years
Infrastructure 25-35 years
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 the reported amount of assets and liabil-
ities as well as disclosures of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.):
Equity Classifications: Government-wide Statements and Proprietary Fund Financial Statements
Equity is classified as net position, which represents the difference between assets and liabilities, and deferred accounts.
Net position is displayed in three components:
a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accu-
mulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other
borrowing that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position - Consists of net position with constraints placed on the use either by (1) external
groups such as creditors, grantor, contributors, or laws or regulations of other governments; or (2) law
through constitutional provisions or enabling legislation.
c. Unrestricted net position - All other net position that do not meet the definition of “restricted” or “invested
in capital assets, net of related debt.”
The City’s policy is to first apply restricted resources when an expense is incurred for purposes for which both restricted
and unrestricted net position is available.
Governmental Fund Financial Statements
The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that
is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts
in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements
are as follows:
Nonspendable: This classification includes amounts that cannot be spent either because it is not in spendable
form or because of legal or contractual constraints. The City did not have any nonspendable resources as of June
30, 2024.
Restricted: This classification includes fund balance amounts that are constrained for specific purposes which
are externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or im-
posed by law through constitutional provisions or enabling legislation. The City has restricted funds for public
works projects, capital projects and debt service.
Committed: This classification includes fund balance amounts that are constrained for specific purpose that are
internally imposed by the government through resolution of the highest level of decision-making authority, the
City Council, and does not lapse at year-end. The City has committed resources as of June 30, 2024.
Assigned: This classification includes fund balance amounts that are intended to be used for specific purposes
that are neither restricted nor committed. This intent can be expressed by the City Council or through the City
Council delegating this responsibility to selected staff members or through the budgetary process. This classifica-
tion also includes the remaining positive fund balance for all governmental funds except for the General Fund.
Unassigned: This classification includes positive fund balance within the General Fund which has not been
classified within the above-mentioned categories, and negative fund balances of other governmental funds.
The City’s policy is to use restricted fund balances first, followed by committed resources, and then assigned resources,
as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to defer the use of
the constrained fund balances.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.):
Property Taxes
The assessment date for the tax year is July 1. Personal and real property taxes are a lien on July 1. Total personal property
tax becomes due and is delinquent when any installment is not paid by its due date. Real property tax is due and payable
on November 15. However, a taxpayer may pay real property taxes in three equal installments, due the 15th day of
November, February, and May. Real property taxes become delinquent if not paid by May 15.
Inter-Fund Transactions
Quasi-external transactions are accounted for as revenues or expenditures. Transactions that constitute reimbursements
to a fund for expenditures initially made from it that are properly applicable to another fund, are recorded as expenditures
in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. All other inter-fund transactions,
except quasi-external transactions and reimbursements, are reported as transfers in the fund financial statements. Nonre-
curring or non-routine permanent transfers of equity are reported as residual equity transfers. All other inter-fund transfers
are reported as operating transfers. For the purposes of the Statement of Activities, all interfund transfers between indi-
vidual governmental funds have been eliminated.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the Oregon Public Employees
Retirement Fund (OPERF) and the Oregon Public Service Retirement Plan (OPSRP) and additions to/deductions from
OPERF’s and OPSRP’s fiduciary net position have been determined on the same basis as they are reported by PERS. For
this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
CASH AND INVESTMENTS:
For discussion of deposit and investment policies and other related information, see Cash and Investments note under the
Summary of Significant Accounting Policies.
The City follows the practice of aggregating the cash assets of various funds to maximize cash management efficiency
and returns. Various restrictions on deposits and investments are imposed by state statutes. These restrictions are summa-
rized in the Cash and Investments note under the Summary of Significant Accounting Policies.
Investments, including amounts held in pool cash and investments are stated at fair value. In accordance with Govern-
mental Accounting Standards Board (GASB) Statement No. 31, Accounting and Financial Reporting for Certain Invest-
ments and for External Investment Pools, investments with a remaining maturity of more than one year at the time of
purchase are stated at fair value. Fair value is determined at the quoted market prices, if available; otherwise, the fair
value is estimated based on the amount at which the investment could be exchanged in a current transaction between
willing parties, other than a forced liquidation sale. Investments in the State of Oregon Local Government Investment
Pool (LGIP) are stated at fair value.
Deposits - All cash is deposited in compliance with Oregon statutes. The insurance and collateral requirements for deposits
are established by banking regulations and Oregon law. FDIC insurance of $250,000 applies to the deposits in each de-
pository. ORS 295 governs the collateralization of Oregon public funds and provides the statutory requirements for the
Oregon Public Funds Collateralization Program (PFCP). Where balances continually exceed $250,000, ORS 295 requires
the depositor to verify that deposit accounts are only maintained at financial institutions on the list of qualified depositories
found on the state treasurer’s website.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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CASH AND INVESTMENTS (Cont.):
Custodial Credit Risk for Deposits - Custodial credit risk for deposits exists when, in the event of a depository failure, the
City's deposits may not be returned to it. The City does not have a deposit policy for custodial credit risk.
As of June 30, 2024, the reported amount of the City’s deposits was $1,109,991 and the bank balance was $1,376,729. Of
the bank balance, the entire amount was insured by the FDIC or covered by the collateral held in a multiple financial
institutions collateral pool administered by the Oregon State Treasurer.
Investments - Oregon statutes authorize the City to invest in obligations of the U.S. Treasury and U.S. agencies, banker’s
acceptances, repurchase agreements, commercial paper rated A-1 by Standard & Poor’s Corporation or P-1 by Moody’s
Commercial Paper Record, and the Local Governmental Investment Pool. The City has no credit risk policy or investment
policy that would further limit its investment choices.
Credit Risk - Credit risk exists when there is a possibility the issuer or other counterparty to an investment may be
unable to fulfill its obligations. As of June 30, 2024, the City’s investment in the Oregon State Treasurer’s Local
Government Investment Pool (LGIP) was unrated.
As of June 30, 2024, the City's investments in financial institutions are as follows:
Investments in the LGIP and federal agency notes do not require disclosure of credit rating quality.
Concentration of Credit Risk - An increased risk of loss occurs as more investments are acquired from one issuer.
This results in a concentration of credit risk. The City places no limit on the amount that may be invested in any one
issuer. More than 5 percent of the City's investments are in the Oregon State Treasurer's Local Government Investment
Pool (LGIP). This investment is 100% of the City's total investment.
Fair Value
Oregon State Treasurer's Local Government
Investment Pool (LGIP)23,505,540$ N/A
Total Investments 23,505,540$
Type of Investment
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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CAPITAL ASSETS:
The following is a summary of capital asset governmental activity for the fiscal year ended June 30, 2024:
Governmental Activities
Beginning
Balances Additions Deletions
Ending
Balances
Assets not being depreciated:
Land 1,315,510$ -$ -$ 1,315,510$
Art and Sculptures 330,872 - - 330,872
Construction in Progress 657,580 130,469 313,884 474,165
Total 2,303,962 130,469 313,884 2,120,547
Assets being depreciated:
Land Improvement - - - -
Building and Building Improvement 4,710,741 - - 4,710,741
Machinery and Equipment 1,557,178 71,471 - 1,628,649
Infrastructure 12,424,972 1,080,752 - 13,505,724
Total Depreciable Assets 18,692,891 1,152,223 - 19,845,114
Less: Accumulated Depreciation
Building and Building Improvement 2,091,328 97,315 - 2,188,643
Machinery and Equipment 1,208,359 98,317 - 1,306,676
Infrastructure 3,264,666 438,199 - 3,702,865
Total Accumulated Depreciation 6,564,353 633,831 - 7,198,184
Net Value of Capital Assets Being Depreciated 12,128,538 518,392 - 12,646,930
Total Governmental Activities -- Net Value of Capital Assets 14,432,500$ 648,861$ 313,884$ 14,767,477$
Depreciation expense was charged to the functions of governmental activities as follows:
General Government 68,762$
Public Safety 7,625
Highway and Streets 485,265
Culture and Recreation 72,180
Total Depreciation Expense 633,831$
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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CAPITAL ASSETS (Cont.):
The following is a summary of capital asset business-type activity for the fiscal year ended June 30, 2024:
Business-Type Activities
Beginning
Balances Additions Deletions
Ending
Balances
Assets not being depreciated:
Land 4,289,705$ -$ -$ 4,289,705$
Art and Sculptures 14,000 - - 14,000
Water Rights 268,688 - - 268,688
Construction in Progress 732,996 157,243 - 890,239
Total 5,305,389 157,243 - 5,462,632
Assets being depreciated:
Utility Systems 28,313,400 846,922 - 29,160,322
Building and Building Improvement 638,499 - - 638,499
Machinery and Equipment 748,981 8,471 - 757,452
Total Depreciable Assets 29,700,880 855,393 - 30,556,273
Less: Accumulated Depreciation
Utility Systems 9,322,134 607,649 - 9,929,783
Building and Building Improvement 215,266 16,710 - 231,976
Machinery and Equipment 598,847 33,650 - 632,497
Total Accumulated Depreciation 10,136,247 658,010 - 10,794,256
Net Value of Capital Assets Being Depreciated 19,564,633 197,383 - 19,762,017
Total Business-Type Activities -- Net Value of Capital Assets 24,870,022$ 354,626$ -$ 25,224,648$
Total Net Value of Captial Assets of Primary Government 39,302,522$ 1,003,487$ 313,884$ 39,992,125$
Depreciation expense was charged to the functions of business-type activities as follows:
Water 291,505$
Sewer 366,505
Total Depreciation Expense 658,010$
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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LONG-TERM DEBT:
In the following paragraphs, long-term debt information is presented separately for governmental and business-type ac-
tivities. The table below presents the current year’s changes in those obligations and the current portions due for each
issue.
Governmental Activities
Full Faith and Credit Refunding Bonds Series 2016 - City Hall and Streets
On January 28, 2016, the City issued full faith and credit refunding bonds for $6,180,000. Proceeds from the issuance
were used to pay off the City’s loans payable for the City Hall Facility, sewer system, Lazy Z property, and USDA revenue
bonds. The bonds are held by US Bank and have a variable interest rate (2-4%) per year. Payments are made annually
with interest payments made on Dec 1 and June 1 and principal payments on Jun 1. The bond is divided into Governmental
and Business Type Activities and has different payment schedules for the various debts. The original portion of the debt
related to the City Hall and Streets (Governmental) was $535,000 with payments due through the fiscal year ending June
30, 2029.
Business-Type Activities
Full Faith and Credit Refunding Bonds Series 2016 - Sewer
On January 28, 2016, the City issued full faith and credit refunding bonds for $6,180,000. Proceeds from the issuance
were used to pay off the City’s loans payable for the City Hall Facility, sewer system, Lazy Z property, and USDA revenue
bonds. The bonds are held by US Bank and have a variable interest rate (2-4%) per year. Payments are made annually
with interest payments made on Dec 1 and June 1, and principal payments on June 1. The bond is divided into Govern-
mental and Business Type Activities and has different payment schedules for the various debts. The original portion of
the debt related to the Sewer activities (Business Type) was $4,869,000 with payments due through the fiscal year ending
June 30, 2041. This debt is comprised of 3 individual debt schedules referred to as 92-04, 92-06, and Sewer Refunding.
Full Faith and Credit Refunding Bonds Series 2016 - Lazy Z
On January 28, 2016, the City issued full faith and credit refunding bonds for $6,180,000. Proceeds from the issuance
were used to pay off the City’s loans payable for the City Hall Facility, sewer system, Lazy Z property, and USDA revenue
bonds. The bonds are held by US Bank and have a variable interest rate (2-4%) per year. Payments are made annually
with interest payments made on Dec 1 and June 1, and principal payments on Jun 1. The bond is divided into Govern-
mental and Business Type Activities and has different payment schedules for the various debts. The original portion of
the debt related to the Lazy C property (Business Type) was $776,000 with payments due through the fiscal year ending
June 30, 2029.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
- 26 -
LONG-TERM DEBT (Cont.):
The debt service requirements on the above debt are as follows:
The City has no unused lines of credit.
The City has no assets that are specifically pledged as collateral for any of the debt.
For further detail on debt service, see the ‘Schedule of Long-Term Debt Transactions’ in the Other Supplementary
Data section of this report.
Outstanding Outstanding Due
Balance Balance Interest Within
July 1, 2023 Reductions June 30, 2024 Paid One Year
Governmental Long Term Debt
Bonds Payable:
Full Faith and Credit Refunding Bonds Series 2016 - City Hall and Streets 278,000$ 40,000$ 238,000$ 10,320$ 44,000$
Total Governmental Bonds Payable 278,000 40,000 238,000 10,320$ 44,000$
Bond Premium 23,662 7,001 16,661
Total Governmental Bonds Payable, Net of Premium 301,662$ 47,001$ 254,661$
Business-Type Long Term Debt
Bonds Payable:
Full Faith and Credit Refunding Bonds Series 2016 - Sewer 3,790,000$ 184,000$ 3,606,000$ 147,920$ 192,000$
Full Faith and Credit Refunding Bonds Series 2016 - Lazy Z 407,000 61,000 346,000 15,060 64,000
Total Business-Type Bonds Payable 4,197,000 245,000 3,952,000 162,980$ 256,000$
Bond Premium 367,317 40,313 327,004
Total Business-Type Bonds Payable, Net of Premium 4,564,317$ 285,313$ 4,279,004$
CITY OF SISTERS
SCHEDULE OF LONG-TERM DEBT TRANSACTIONS
For the Fiscal Year Ended June 30, 2024
General Obligation and Limited Tax Bonds:
Due Fiscal Year
2025 300,000$ 161,600$ 461,600$
2026 310,000 149,400 459,400
2027 325,000 136,700 461,700
2028 340,000 123,400 463,400
2029 350,000 109,600 459,600
2030 - 2034 920,000 424,000 1,344,000
2035 - 2039 1,125,000 220,900 1,345,900
2040 - 2044 520,000 21,000 541,000
Total 4,190,000$ 1,346,600$ 5,536,600$
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN:
The City of Sisters offers various retirement plans to qualified employees as described below.
Name of Pension Plan
The City of Sisters participates with other state agencies in the Oregon Public Employees Retirement System (OPERS)
which is a cost-sharing multiple-employer defined benefit pension plan.
Description of Benefit Terms
Plan Benefits
OPERS is administered in accordance with Oregon Revised Statutes (ORS) Chapter 238, Chapter 238A, and Internal
Revenue Code Section 401(a). The Oregon Legislature has delegated authority to the Public Employees Retirement
Board (PERS Board) to administer and manage the System.
1. Tier One/Tier Two Retirement Benefit (Chapter 238). OPERS is a defined benefit pension plan that provides re-
tirement and disability benefits, annual cost-of-living adjustments, and death benefits to members and their beneficiaries.
Benefits are established by state statute. This defined benefit pension plan portion of OPERS is closed to new members
hired on or after August 29, 2003.
Pension Benefits
The OPERS retirement allowance is payable monthly for life. Members may select from 13 retirement benefit options.
These options include survivorship benefits and lump-sum refunds. The basic benefit is based on years of service and final
average salary. A percentage (2.0 percent for police and fire employees, 1.67 percent for general service employees) is
multiplied by the number of years of service and the final average salary. Benefits may also be calculated under either a
formula plus annuity (for members who were contributing before August 21, 1981) or a money match computation if a
greater benefit results.
Police and Fire members may purchase increased benefits that are payable between the date of retirement and age 65.
A member is considered vested and will be eligible at minimum retirement age for a service retirement allowance if he or
she has had a contribution in each of five calendar years or has reached at least 50 years of age before ceasing employment
with a participating employer (age 45 for police and fire members). General service employees may retire after reaching
age 55. Police and fire members are eligible after reaching age 50. Tier One general service employee benefits are reduced
if retirement occurs prior to age 58 with fewer than 30 years of service. Police and fire member benefits are reduced if
retirement occurs prior to age 55 with fewer than 25 years of service. Tier Two members are eligible for full benefits at
age 60. The ORS Chapter 238 Defined Benefit Pension Plan is closed to new members hired on or after August 29, 2003.
During the 2019 Legislative session, Senate Bill 1049 was approved and signed into law by the governor. Under Senate
Bill 1049, several components of the bill have significantly impacted the System, and the bill continues to be imple-
mented.
1. Employer Programs Project (effective July 1, 2019): established the Employer Incentive Fund (EIF) Program,
which allows eligible employers to receive matching funds if they apply and make a qualifying deposit into a side
account.
2. Salary Limit Project: A new limitation on subject final average salary used for PERS benefit calculations and
contributions is used to determine member IAP contributions, employer contributions to fund the pension pro-
gram, and the Final Average Salary (FAS) used in calculating retirement benefits under formula methods was
added, ($225,533 as of January 1, 2023). This amount is indexed annually to the Consumer Price Index (CPI).
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
3. Work After Retirement Project (effective January 1, 2020): The 1,039-hour Work After Retirement limit for all
PERS retirees is removed for calendar years 2020 through 2024. If a member retires on or after normal retirement
age, starting in 2020, they can work for a PERS-covered employer and continue receiving their pension benefit
(without accruing any new benefits) with no hour limitations. If a member retires earlier than normal retirement
age, starting in 2020, they can work for a PERS-covered employer and continue receiving their pension benefit
(without accruing any new benefits) with no hour limitations if the date of their employment is more than six
months after their retirement date.
4. Member Redirect Project (effective July 1, 2020): For all currently employed Tier One/Tier Two and OPSRP
members earning $3,570/month in House Bill 2906 as of June 2023), a portion of their 6 percent monthly IAP
contributions will be redirected to an “Employee Pension Stability Account.” The Employee Pension Stability
Account will be used to pay for part of the member’s future pension benefit.
Tier One/Tier Two members: 2.5 percent of each member’s IAP contribution amount, currently contrib-
uted to the IAP, (whether paid by the member or employer) will start going into an Employee Pension
Stability Account (EPSA). The remainder will continue to go to the member’s existing IAP account.
Members may voluntarily choose to make additional after-tax contributions into their IAP account to
make a full, 6 percent contribution to the IAP.
5. Member Choice Project (effective January 1, 2021): IAP accounts are currently invested in Target-Date Funds
based on a member’s birth year. Beginning in 2021, members may choose to invest their IAP balance in a fund
that is more reflective of their risk tolerance than the default based on their age.
6. Additionally, the Legislature directed the PERS Board to enact a one-time re-amortization of Tier 1/Tier 2 UAL
over 22 years. This means that, effective with the December 31, 2019 rate-setting valuation, the entire unamor-
tized Tier 1/Tier 2 UAL for each rate pool and independent employer will be re-amortized over a 22 year period
as a level percentage of projected future payroll.
Death Benefits
Upon the death of a non-retired member, the beneficiary receives a lump-sum refund of the member’s account balance
(accumulated contributions and interest). In addition, the beneficiary will receive a lump-sum payment from employer
funds equal to the account balance, provided one or more of the following conditions are met:
• the member was employed by an OPERS employer at the time of death,
• the member died within 120 days after termination of OPERS-covered employment,
• the member died as a result of injury sustained while employed in an OPERS-covered job, or
• the member was on an official leave of absence from an OPERS-covered job at the time of death.
Disability Benefits
A member with 10 or more years of creditable service who becomes disabled from other than duty-connected causes may
receive a non-duty disability benefit. A disability resulting from a job-incurred injury or illness qualifies a member (in-
cluding OPERS judge members) for disability benefits regardless of the length of OPERS-covered service. Upon qualify-
ing for either a non-duty or duty disability, service time is computed to age 58 (55 for police and fire members) when
determining the monthly benefit.
Benefit Changes After Retirement
Members may choose to continue participation in a variable equities investment account after retiring and may experience
annual benefit fluctuations due to changes in the fair value of equity investments.
Under ORS 238.360 monthly benefits are adjusted annually through cost-of-living changes (COLA). The COLA is capped
at 2.0 percent.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
2. OPSRP Defined Benefit Pension Program (OPSRP DB). The Pension Program (ORS Chapter 238A) provides
benefits to members hired on or after August 29, 2003.
Pension Benefits
This portion of OPSRP provides a life pension funded by employer contributions. Benefits are calculated with the follow-
ing formula for members who attain normal retirement age:
Police and fire: 1.8 percent is multiplied by the number of years of service and the final average salary. Normal retirement
age for police and fire members is age 60 or age 53 with 25 years of retirement credit. To be classified as a police and fire
member, the individual must have been employed continuously as a police and fire member for at least five years imme-
diately preceding retirement.
General service: 1.5 percent is multiplied by the number of years of service and the final average salary. Normal retirement
age for general service members is age 65, or age 58 with 30 years of retirement credit.
A member of the OPSRP Pension Program becomes vested on the earliest of the following dates: the date the member
completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, and, if
the pension program is terminated, the date on which termination becomes effective.
During the 2019 Legislative session, Senate Bill 1049 was approved and signed into law by the governor. Under Senate
Bill 1049, several components of the bill have significantly impacted the System, and the bill continues to be imple-
mented.
1. Employer Programs Project (effective July 1, 2019): established the Employer Incentive Fund (EIF) Program,
which allows eligible employers to receive matching funds if they apply and make a qualifying deposit into a side
account.
2. Salary Limit Project: A new limitation on subject final average salary used for PERS benefit calculations and
contributions is used to determine member IAP contributions, employer contributions to fund the pension pro-
gram, and the Final Average Salary (FAS) used in calculating retirement benefits under formula methods was
added ($225,533 as of January 1, 2023). This amount will be indexed annually to the Consumer Price Index
(CPI).
3. Work After Retirement Project (effective January 1, 2020): The 1,039-hour Work After Retirement limit for all
PERS retirees is removed for calendar years 2020 through 2024. If a member retires on or after normal retire-
ment age, starting in 2020, they can work for a PERS-covered employer and continue receiving their pension
benefit (without accruing any new benefits) with no hour limitations. If a member retires earlier than normal re-
tirement age, starting in 2020, they can work for a PERS-covered employer and continue receiving their pension
benefit (without accruing any new benefits) with no hour limitations if the date of their employment is more than
six months after their retirement date.
4. Member Redirect Project (effective July 1, 2020): For all currently employed Tier One/Tier Two and OPSRP
members earning $3,570/month in House Bill 2906 as of June 2023), a portion of their 6 percent monthly IAP
contributions will be redirected to an “Employee Pension Stability Account.” The Employee Pension Stability
Account will be used to pay for part of the member’s future pension benefit.
OPSRP members: 0.75 percent of each member’s contribution, currently contributed to the IAP,
(whether paid by the member or employer) will start going into their EPSA. The remaining 5.25 percent
of the members contribution will continue to go to the member’s existing IAP account.
Members may voluntarily choose to make additional after-tax contributions into their IAP account to
make a full, 6 percent contribution to the IAP.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
5. Member Choice Project (effective January 1, 2021): IAP accounts are currently invested in Target-Date Funds
based on a member’s birth year. Beginning in 2021, members may choose to invest their IAP balance in a fund
that is more reflective of their risk tolerance than the default based on their age.
Death Benefits
Upon the death of a non-retired member, the spouse or other person who is constitutionally required to be treated in the
same manner as the spouse, receives for life 50 percent of the pension that would otherwise have been paid to the deceased
member.
Disability Benefits
A member who has accrued 10 or more years of retirement credits before the member becomes disabled or a member who
becomes disabled due to job-related injury shall receive a disability benefit of 45 percent of the member’s salary deter-
mined as of the last full month of employment before the disability occurred.
3. Individual Account Program (IAP).
Benefit Terms
The IAP is an individual account-based program under the PERS tax-qualified governmental plan as defined under ORS
238A.400.
An IAP member becomes vested on the date the employee account is established or on the date the rollover account was
established. If the employer makes optional employer contributions for a member, the member becomes vested on the
earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the
date the member reaches normal retirement age, the date the IAP is terminated, the date the active member becomes dis-
abled, or the date the active member dies.
Upon retirement, a member of the Individual Account Program (IAP) may receive the amounts in his or her employee
account, rollover account, and vested employer account as a lump-sum payment or in equal installments over a 5-, 10-,
15-, 20-year period or an anticipated life span option.
Death Benefits
Upon the death of a non-retired member, the beneficiary receives in a lump sum the member’s account balance, rollover
account balance, and vested employer optional contribution account balance. If a retired member dies before the install-
ment payments are completed, the beneficiary may receive the remaining installment payments or choose a lump-sum
payment.
Recordkeeping
OPERS contracts with VOYA Financial to maintain IAP participant records.
4. Postemployment Healthcare Benefits.
ORS 238.420 established the Retirement Health Insurance Account (RHIA) and authorizes a payment of up to $60 from
RHIA toward the monthly cost of health insurance for eligible PERS members. RHIA is a cost-sharing, multiple-em-
ployer OPEB plan for 897 participating employers. The plan was closed to new entrants hired on or after August 29,
2003.
To be eligible to receive this monthly payment toward the premium costs, the member must: (1) have eight years or
more of qualifying service in PERS at the time of retirement or receive a disability allowance as if the member had eight
years or more of creditable service in PERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in a
PERS-sponsored health plan.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
Description of Funding and Contributions for PERS Benefit Plans
OPERS’ funding policy provides for periodic member and employer contributions at rates established by the Public Em-
ployees Retirement Board, subject to limits set in statute. Contributions for employers are recognized on the accrual ba-
sis of accounting. Employer contributions to OPERS are calculated based on creditable compensation for active mem-
bers reported by employers. The rates established for member and employer contributions were approved based on the
recommendations of the System’s third-party actuary. The contribution rate for every employer has at least two major
components; Normal Cost Rate and Unfunded Actuarial Liability (UAL) Rate.
The City’s employer contributions for the year ended June 30, 2024 were $356,099 excluding amounts to fund employer
specific liabilities.
The contribution rates in effect for the period July 1, 2021 to June 30, 2023 are: Tier1/Tier2 – 20.49%, OPSRP General
Service – 18.47%, and OPSRP Fire and Police – 23.26%.
Member Contributions
Beginning January 1, 2004, all member contributions, except for contributions by judge members, were placed in the
OPSRP Individual Account Program (IAP). Prior to that date, all member contributions were credited to the Defined
Benefit Pension Plan. Member contributions are set by statute at 6.0 salary and are remitted by participating employers.
The contributions are either deducted from member salaries or paid by the employers on the members’ behalf.
During FY 2023-2024, no employee IAP contributions were paid or picked up by the City.
Employer Contributions
PERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions,
expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. This
funding policy applies to the PERS Defined Benefit Plan and OPEB (Other Post Employment Benefit) Plans. Employer
contribution rates during the period were based on the December 31, 2019, actuarial valuation, which became effective
July 1, 2021. The state of Oregon and certain schools, community colleges, and political subdivisions have made supple-
mental unfunded actuarial liability payments, and their rates have been reduced. Effective January 1, 2020, Senate Bill
1049 required employers to pay contributions on re-employed PERS retirees’ salary as if they were an active member,
excluding IAP (6%) contributions. Re-employed retirees do not accrue additional benefits while they work after retire-
ment.
For Oregon PERS Defined Benefit Plans, Effective July 1, 2021, the contribution rate for State Agencies was 20.36%,
the State and Local Government Rate Pool 28.08%, Schools 27.54%, Cities 28.64% and Judiciary 24.56% of PERS-
covered salaries.
For Oregon PERS OPSRP Pension Program, all OPERS employers with OPSRP Pension Program members are actu-
arially pooled and share the same contribution rate. The employer rates effective July 1, 2021, through June 30, 2023,
are 10.33% for General Service employees, and 14.69% for Police and Fire employees of covered salaries. Each of
these rates includes a component related to disability benefits for General Service and Police and Fire members.
Members of OPSRP are required to contribute 6.0% of their salary covered under the plan which is invested in the IAP.
For employees in Tier One / Tier two, the Employer makes this contribution on behalf of its members.
Pension Plan CAFR/ ACFR
Oregon PERS produces an independently audited ACFR which can be found at:
www.oregon.gov/pers/Documents/Financials/ACFR/2023-ACFR.pdf
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
For Oregon PERS Postemployment Benefit Plans, for the fiscal year ended June 30, 2023, PERS employers contrib-
uted 0.05% of PERS-covered salaries for Tier One and Tier Two members to fund the normal cost portion of RHIA ben-
efits. No UAL rate was assigned for the RHIA program as it was funded at over 100% as of December 31, 2019. These
rates were based on the December 31, 2019, actuarial valuation.
Employer contributions are advance-funded on an actuarially determined basis. There is no inflation assumption for
RHIA postemployment benefits because the payment amount is set by statute and is not adjusted for increases in
healthcare costs.
ORS 238.415 established the Retiree Health Insurance Premium Account (RHIPA) and requires the Board on or before
January 1 of each year to calculate the average difference between the health insurance premiums paid by retired state
employees under contracts entered into by the Board and health insurance premiums paid by active state employees.
For OPSRP Pension Program, all OPERS employers with OPSRP Pension Program members are actuarially pooled and
share the same contribution rate. Each of these rates includes a component related to disability benefits for General Service
and Police and Fire members.
Pension Plan CAFR/ ACFR
Oregon PERS produces an independently audited ACFR which can be found at:
www.oregon.gov/pers/Documents/Financials/ACFR/2023-ACFR.pdf
Actuarial Valuations
The employer contribution rates effective July 1, 2023, through June 30, 2025, were set using the Entry Age Normal
actuarial cost method.
For the Tier One/Tier Two component of the OPERS Defined Benefit Plan, this method produced an employer contribu-
tion rate consisting of (1) an amount for normal cost (the estimated amount necessary to finance benefits earned by the
employees during the current service year), (2) an amount for the amortization of unfunded actuarial accrued liabilities,
which are being amortized over a fixed period with new unfunded actuarial accrued liabilities being amortized over 20
years by ongoing Board policy. However, upon passage of Senate Bill 1049, the Legislature directed the PERS Board to
enact a one-time re-amortization of Tier 1/Tier 2 UAL over 22 years. This means that, effective with the December 31,
2019 rate-setting valuation, the entire unamortized Tier 1/Tier 2 UAL for each rate pool and independent employer will
be re-amortized over a 22 year period as a level percentage of projected future payroll.
For the OPSRP Pension Program component of the OPERS Defined Benefit Plan, this method produced an employer
contribution rate consisting of (a) an amount for normal cost (the estimated amount necessary to finance benefits earned
by the employees during the current service year), (b) an amount for the amortization of unfunded actuarial accrued lia-
bilities, which are being amortized over a fixed period with new unfunded actuarial accrued liabilities being amortized
over the same period of years.
For the Postemployment Healthcare component, the RHIA plan fiduciary net position balance represents the program’s
accumulation of employer contributions and investment earnings less premium subsidies and administrative expenses.
No UAL rate was assigned for the RHIA program as it was funded over 100% as of December 31, 2019. Typically,
PERS employers contribute an actuarially determined percent of all PERS-covered salaries to amortize the unfunded
actuarial accrued liability over a fixed period with new unfunded actuarial accrued liabilities being amortized over 10
years.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
Actuarial Methods and Assumptions Used in Developing Total Pension Liability
Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about the
probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results
are compared to past expectations and new estimates are made about the future. Experience studies are performed as of
December 31 of even numbered years. The methods and assumptions shown above are based on the 2020 Experience
Study which reviewed experience for the four-year period ending on July 20, 2021.
Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent for the Defined Benefit Pension Plan. The
projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of
the contributing employers are made at the contractually required rates, as actuarially determined. Based on those assump-
tions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments
of current plan members. Therefore, the long-term expected rate of return on pension plan investments for the Defined
Benefit Pension Plan was applied to all periods of projected benefit payments to determine the total pension liability.
Actuarial Methods and Assumptions Used in Developing Total Pension Liability:
Valuation Date December 31, 2021
Measurement Date June 30, 2023
Experience Study 2020, published July 20, 2021
Actuarial assumptions:
Actuarial cost method Entry Age Normal
Inflation rate 2.40 percent
Long-term expected rate of return 6.90 percent
Discount rate 6.90 percent
Projected salary increases 3.40 percent
Cost of living adjustments (COLA)
Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in
Mortality Healthy retirees and beneficiaries:
Pub-2010 Healthy Retiree, sex distinct, generational with
Unisex, Social Security Data Scale, with job category
adjustments and set-backs as described in the valuation.
Active members:
Pub-2010 Employee, sex distinct, generational with
Unisex, Social Security Data Scale, with job category
adjustments and set-backs as described in the valuation.
Disabled retirees:
Pub-2010 Disable Retiree, sex distinct, generational with
Unisex, Social Security Data Scale, with job category
adjustments and set-backs as described in the valuation.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
- 34 -
PENSION PLAN (Cont.):
Depletion Date Projection
GASB 67 generally requires that a blended discount rate be used to measure the Total Pension Liability (the Actuarial
Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan
investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position is projected to cover
benefit payments and administrative expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate must be
used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses.
Determining the discount rate under GASB 67 will often require that the actuary perform complex projections of future
benefit payments and pension plan investments. GASB 67 (paragraph 43) does allow for alternative evaluations of pro-
jected solvency, if such evaluation can reliably be made. GASB does not contemplate a specific method for making an
alternative evaluation of sufficiency; it is left to professional judgment.
The following circumstances justify an alternative evaluation of sufficiency for OPERS:
- OPERS has a formal written policy to calculate an Actuarially Determined Contribution (ADC), which is articulated in
the actuarial valuation report.
- The ADC is based on a closed, layered amortization period, which means that payment of the full ADC each year will
bring the plan to a 100% funded position by the end of the amortization period if future experience follows assumption.
- GASB 67 specifies that the projections regarding future solvency assume that plan assets earn the assumed rate of return
and there are no future changes in the plan provisions or actuarial methods and assumptions, which means that the projec-
tions would not reflect any adverse future experience which might impact the plan’s funded position.
Based on these circumstances, it is our independent actuary’s opinion that the detailed depletion date projections outlined
in GASB 67 would clearly indicate that the Fiduciary Net Position is always projected to be sufficient to cover benefit
payments and administrative expenses.
OIC Target and Actual Investment Allocation as of June 30, 2023
OIC Target
Allocation
Actual
Allocation2
Debt Securities 22.0% - 30.0% 25.0% Debt Securities 20.0%
Public Equity 22.5% - 32.5% 27.5% Public Equity 23.3%
Real Estate 9.0% - 16.5% 12.5% Real estate 13.6%
Private Equity 17.5% - 27.5% 20.0% Private Equity 26.5%
Real Assets 2.5% - 10.0% 7.5% Real Assets 9.1%
Diversifying Strategies 2.5% - 10.0% 7.5% Diversifying Strategies 5.0%
Opportunity Portfolio1 0.0% - 5.0% 0.0% Opportunity Portfolio 2.5%
Total 100% Total 100%
1Opportunity Portfolio is an investment strategy. Up to 5% of total Fund assets may be invested in it.
Asset Class/Strategy OIC Policy Range Asset Class/Strategy
2The target allocation of Debt Securities is increased by 5% and Public Equity is reduced by 2.5% from
FY2022, and the allocation to Risk Parity is eliminated.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
Long-Term Expected Rate of Return
To develop an analytical basis for the selection of the long-term expected rate of return assumption, in January 2023 the
Oregon PERS Board reviewed long-term assumptions developed by both Milliman’s capital market assumptions team and
the Oregon Investment Council’s (OIC) investment advisors. Each asset class assumption is based on a consistent set of
underlying assumptions and includes adjustment for the inflation assumption. These assumptions are not based on histor-
ical returns, but instead are based on a forward-looking capital market economic model. The table below shows Milliman’s
assumptions for each of the asset classes in which the plan was invested at that time based on the OIC long-term target
asset allocation. The OIC’s description of each asset class was used to map the target allocation to the asset classes shown
below.
Sensitivity Analysis
The following presents the employer’s proportionate share of the net pension liability calculated using the discount rate
of 6.90 percent, as well as what the employer’s proportionate share of the net pension liability would be if it were calculated
using a discount rate that is 1-percentage-point lower (5.90 percent) or 1-percentage-point higher (7.90 percent) than the
current rate:
Target
Allocation
Annual
Arithmetic
Return2
20-Year
Annualized
Geometric Mean
Annual
Standard
Deviation
Global Equity 27.50% 8.57% 7.07% 17.99%
Private Equity 25.50% 12.89% 8.83% 30.00%
Core Fixed Income 25.00% 4.59% 4.50% 4.22%
Real Estate 12.25% 6.90% 5.83% 15.13%
Master Limited Partnerships 0.75% 9.41% 6.02% 27.04%
Infrastructure 1.50% 7.88% 6.51% 17.11%
Hedge Fund of Funds - Multistrategy 1.25% 6.81% 6.27% 9.04%
Hedge Fund Equity - Hedge 0.63% 7.39% 6.48% 12.04%
Hedge Fund - Macro 5.62% 5.44% 4.83% 7.49%
Assumed Inflation - Mean 2.35% 1.41%
Long Term Expected Rate of Return1
Asset Class
1Based on the Oregon Investment Council’s (OIC) Statement of Investment Objectives and Policy Framework for the Oregon
Public Employees Retirement Fund, including revisions adopted at the OIC meeting on January 25, 2023.
2The arithmetic mean is a component that goes into calculating the geometric mean. Expected rates of return are presented
using the geometric mean, which the Board uses in setting the discount rate.
5.90% 6.90% 7.90%
Employer's proportionate share of the net
3,060,694$ 1,852,931$ 842,162$
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
- 36 -
PENSION PLAN (Cont.):
Changes Since Last Valuation
A summary of key changes implemented after the December 31, 2021 valuation, which was used in the 2023 PERS ACFR.
Changes are described briefly below. Additional detail and a comprehensive list of changes in methods and assumptions
can be found in the 2020 Experience Study for the System, which was published on July 20, 2021, which can be found at:
2020-Experience-Study.pdf (oregon.gov)
Changes in Actuarial Methods and Allocation Procedures
There were no changes in actuarial methods and allocation procedures since the December 31,2020 actuarial valuation.
Changes in Assumptions
The merit/longevity component assumption of individual member salary increases were updated for all groups, including
adding a select assumption of an additional 2% for all members for two years.
The mortality improvement projection scale applied to all groups is based on 60-year unisex average mortality improve-
ments by age. The assumption was updated to reflect the most recent publicly available data at the time of the latest
experience study.
Termination, disability and retirement rates were updated for some groups to more closely match observed and anticipated
future experience.
Assumptions for unused sick leave and vacation pay were updated.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
Mortality Rates
A summary of the current assumed mortality rates and recommended changes is shown below:
Recommended December 31, 2020
and 2021 Valuations
Recommended December 31, 2022
and 2023 Valuations
Healthy Annuitant Mortality
Pub-2010 Healthy Retiree, Sex Distinct,
Generational Projection with Unisex Social
Security Data Scale
Pub-2010 Healthy Retiree, Sex Distinct,
Generational Projection with Unisex Social
Security Data Scale
School District male Blend 80% Teachers and 20% General
Employees, no set back No change
General Employees, set back 12 months No change
Public Safety, no set back No change
School District female Teachers, no set back No change
Other female (and female beneficiary) General Employees, no set back No change
Police & Fire female Public Safety, set back 12 months No change
Disabled Retiree Mortality
Pub-2010 Disabled Retiree, Sex
Distinct, Generational Projection
with Unisex Social Security Data Scale
Pub-2010 Disabled Retiree, Sex
Distinct, Generational Projection
with Unisex Social Security Data Scale
Blended 50% Public Safety, 50% Non-Safety, no
set back No change
Non-Safety, set forward 24 months No change
Blended 50% Public Safety, 50% Non-Safety, no
set back No change
Non-Safety, set forward 12 months No change
Non-Annuitant Mortality
Pub-2010 Employee, Sex Distinct,
Generational Projection with
Unisex Social Security Data Scale
Pub-2010 Employee, Sex Distinct,
Generational Projection with
Unisex Social Security Data Scale
School District male 125% of same table and set back as No change
Other General Service male 115% of same table and set back as No change
100% of same table and set back as
Non-Disabled Annuitant assumption
125% of same table and set back as
Non-Disabled Annuitant assumption
School District female 100% of same table and set back as
Non-Disabled Annuitant assumption No change
125% of same table and set back as
Non-Disabled Annuitant assumption No change
100% of same table and set back as
Non-Disabled Annuitant assumption No change
Other General Service female
Police & Fire female
Assumption
Other General Service male (and male
beneficiary)
Police & Fire male
Police & Fire male
Police & Fire female
Other General Service female
Police & Fire male
Other General Service male
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
Changes Subsequent to the Measurement Date
There were no changes subsequent to the measurement date, that we are aware of.
Deferred Items
Deferred items are calculated at the system-wide level and are allocated to employers based on their proportionate share.
For the measurement period ending June 30, 2022, employers will report the following deferred items:
A difference between expected and actual experience, which is being amortized over the remaining service lives
of all plan participants, including retirees. One year of this amortization is included in the employer’s total pension
expense for the measurement period.
Employer Contributions
OPERS includes accrued contributions when due pursuant to legal requirements, as of June 30 in its Statement of Changes
in Fiduciary Net Position.
Beginning with fiscal year 2016, OPERS will be able to report cash contributions and UAL side account amortization by
employer and will publish this information on the OPERS Website. Prior to fiscal year 2016, contributions to the OPSRP
Defined Benefit plan were not accounted for by employer, as all employers were pooled for actuarial purposes.
Elements of Changes in Net Position
This information can be found in the Schedule of Changes in Net Pension Liability found on page 96, of the June 30,
2023 Oregon PERS ACFR. www.oregon.gov/pers/Documents/Financials/ACFR/2023-ACFR.pdf
Pension Liabilities/(Assets), Pension Expense, and Deferred Outflows and Inflows of Resources Related to Pensions
On June 30, 2024, the employer reported a liability of $1,852,931 for its proportionate share of the net pension liability.
The net pension liability/(asset) was measured as of June 30, 2023, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The employer’s proportion of the net pension
liability was based on a projection of the employer’s long-term share of contributions to the pension plan relative to the
projected contributions of all participating employers, actuarially determined.
At June 30, 2023, the employer’s proportion was 0.00989249%.
For the year ended June 30, 2024, the employer recognized pension expense of $329,632.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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PENSION PLAN (Cont.):
As of June 30, 2024, the employer reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Contributions of $356,099, for PERS defined benefits, were made subsequent to the measurement date, but prior to the
end of the District’s reporting period. These contributions, which are reported as deferred outflows of resources related to
pensions, will be included as a reduction of the net pension liability in next fiscal year.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense/(income) as follows:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience 90,614$ 7,347$
Changes of assumptions 164,603 1,227
33,305 -
162,530 31,011
- 149,530
451,052$ 189,115$
356,099 N/A
Total Deferred Outflow/(Inflow) of Resources 807,151$ 189,115$
Net Deferred Outflow/(Inflow) of Resources
prior to post-measurement date contributions 261,937$
Net difference between projected and actual earnings on
Differences between employer contributions and
Employer subsequent
1st Fiscal Year 34,955$
2nd Fiscal Year (36,973)
3rd Fiscal Year 190,793
4th Fiscal Year 64,410
5th Fiscal Year 8,752
Total 261,937$
Deferred Outflow/(Inflow) of Resources (prior
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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OTHER POST-EMPLOYMENT BENEFITS (OPEB) RHIA:
Oregon Public Employees Retirement Systems’ (OPERS) Retiree Health Insurance Account (RHIA)
Plan Description
The City contributes to the Oregon Public Employees Retirement Systems’ (OPERS) Retiree Health Insurance Account
(RHIA), a cost-sharing multiple-employer defined benefit post-employment healthcare plan administered by the Oregon
Public Employees Retirement Board (OPERB). The plan, which was established under Oregon Revised Statutes 238.420,
provides a payment of up to $60 per month towards the costs of health insurance for eligible OPERS retirees. RHIA post-
employment benefits are set by state statute. The plan was closed to new entrants hired on or after August 29, 2003.
To be eligible to receive this monthly payment toward the premium cost the member must: (1) have eight years or more
of qualifying service in OPERS at the time of retirement or receive a disability allowance as if the member had eight years
or more of creditable service in OPERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in an OPERS-
sponsored health plan. A surviving spouse or dependent of a deceased OPERS retiree who was eligible to receive the
subsidy is eligible to receive the subsidy if he or she (1) is receiving a retirement benefit or allowance from OPERS or (2)
was insured at the time the member died and the member retired before May 1, 1991.
Employer contributions are advance-funded on an actuarially determined basis. There is no inflation assumption for RHIA
postemployment benefits because the payment amount is set by statute and is not adjusted for increases in healthcare costs.
An annual comprehensive financial report of the funds administered by the OPERB may be obtained by writing to Oregon
Public Employees Retirement System, P.O. Box 23700, Tigard, OR 97281-3700, by calling (503) 598-7377, or by access-
ing the OPERS web site at www.oregon.gov/pers/Documents/Financials/ACFR/2023-ACFR.pdf.
Funding Policy
Participating employers are contractually required to contribute at a rate assessed bi-annually by the OPERB.
For the fiscal year ended June 30, 2024, PERS employers contributed 0.05% of PERS-covered salaries for Tier One and
Tier Two members to fund the normal cost portion of RHIA benefits. No unfunded actuarial liability (UAL) rate was
assigned for the RHIA program as it was funded over 100% as of December 31, 2019. Typically, PERS employers
contribute an actuarially determined percent of all PERS-covered salaries to amortize the unfunded actuarial accrued lia-
bility over a fixed period with new unfunded actuarial accrued liabilities being amortized over 10 years. These rates were
based on the December 31, 2019, actuarial valuation.
Contributions
The City’s contributions to OPERS’ RHIA for the years ended June 30, 2024, 2023, and 2022 were $6, $78 and $112
respectively, which equaled the required contributions for the year.
Actuarial Methods and Assumptions Used in Developing Total Pension Liability
All assumptions, methods and plan provisions used in these calculations are described in the Oregon PERS Retirement
Health Insurance Account Cost Sharing Multiple Employer Other Postemployment Benefit (OPEB) Plan Schedules of
Employer Allocations and OPEB Amounts by Employer report, as of and for the Year Ended June 30, 2023. That inde-
pendently audited report was dated June 30, 2023 and can be found at:
www.oregon.gov/pers/Documents/Financials/ACFR/2023-ACFR.pdf
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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OTHER POST-EMPLOYMENT BENEFITS (OPEB) RHIA (Cont.):
Actuarial valuations of an ongoing plan involve estimates of value of reported amounts and assumptions about the proba-
bility of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are
compared to past expectations and new estimates are made about the future. Experience studies are performed as of De-
cember 31 of even numbered years. The method and assumptions shown are based on the 2020 Experience Study which
is reviewed for the four-year period ending December 31, 2022.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.90 percent. The projection of cash flows used to determine
the discount rate assumed that contributions from contributing employers are made at the contractually required rates, as
actuarially determined. Based on those assumptions, the RHIA plan's fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long term expected rate of return
on OPEB plan investments for the RHIA plan was applied to all periods of projected benefit payments to determine the
total OPEB liability.
Actuarial Methods and Assumptions - OPEB Plans - RHIA
RHIA
Valuation Date December 31, 2021
Measurement Date June 30, 2023
Experience Study 2020, published July 20, 2021
Actuarial assumptions:
Actuarial cost method Entry Age Normal
Inflation rate 2.40 percent
Long-term expected rate of return 6.90 percent
Discount rate 6.90 percent
Projected salary increases 3.40 percent
Retiree healthcare participation Healthy retirees: 27.5%
Healthcare cost trend rate Not applicable
Mortality Healthy retirees and beneficiaries:
Pub-2010 Healthy Retiree, sex distinct, generational with Unisex, Social
in the valuation.
Active members:
Pub-2010 Employee, sex distinct, generational with
Unisex, Social Security Data Scale, with job category
adjustments and set-backs as described in the valuation.
Disabled retirees:
Pub-2010 Disable Retiree, sex distinct, generational with Unisex, Social
in the valuation.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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OTHER POST-EMPLOYMENT BENEFITS (OPEB) RHIA (Cont.):
Long-Term Expected Rate of Return
To develop an analytical basis for the selection of the long-term expected rate of return assumption, in June 2021 the
PERS Board reviewed long-term assumptions developed by both Milliman’s capital market assumptions team and the
Oregon Investment Council’s (OIC) investment advisors. Table 31 on page 74 shows Milliman’s assumptions for each of
the asset classes in which the plans were invested at that time based on the OIC long-term target asset allocation. The
OIC’s description of each asset class was used to map the target allocation to the asset classes shown on page 74. Each
asset class assumption is based on a consistent set of underlying assumptions and includes adjustment for the inflation
assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital
market economic model. For more information on the Plan’s portfolio, assumed asset allocation, and the long-term ex-
pected rate of return for each major class, calculated using both arithmetic and geometric means, see Pension Plan note
disclosure above or the PERS’ audited financial statements at:
www.oregon.gov/pers/Documents/Financials/ACFR/2023-ACFR.pdf
Sensitivity Analysis
The following presents the employer’s proportionate share of the net OPEB liability/(asset) calculated using the discount
rate of 6.90 percent, as well as what the employer’s proportionate share of the OPEB liability/(asset) would be if it were
calculated using a discount rate that is 1-percentage-point lower (5.90 percent) or 1-percentage-point higher (7.90 percent)
than the current rate:
OPEB Liabilities/(Assets), OPEB Expense, and Deferred Outflows and Inflows of Resources Related to OPEB
At June 30, 2024, the City reported a net OPEB RHIA liability/(asset) of $(14,566) for its proportionate share of the net
OPEB RHIA liability/(asset). The OPEB liability/(asset) was measured as of June 30, 2023, and the total OPEB RHIA
liability/(asset) used to calculate the net OPEB RHIA liability/(asset) was determined by an actuarial valuation as of De-
cember 31, 2020. Consistent with GASB Statement No. 75, paragraph 59(a), The City’s proportion of the net OPEB RHIA
liability/(asset) is determined by comparing the employer’s actual, legally required contributions made during the fiscal
year to the Plan with the total actual contributions made in the fiscal year of all employers. As of the measurement date of
June 30, 2023, the City’s proportion was 0.00397802 percent. OPEB RHIA expense/(income) recorded for the year ended
June 30, 2024 was (1,712).
1% Decrease Discount Rate 1% Increase
5.90% 6.90% 7.90%
Employer's proportionate share of the net
OPEB liability (13,241)$ (14,566)$ (15,703)$
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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OTHER POST-EMPLOYMENT BENEFITS (OPEB) RHIA:
On June 30, 2024, the employer reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Contributions of $6 were made subsequent to the measurement date, but prior to the end of the City’s reporting period.
These contributions, which are reported as deferred outflows (inflows) of resources related to OPEB, will be included as
a reduction of the net OPEB liability in next fiscal year.
Deferred outflows of resources and deferred inflows of resources related to OPEB’s will be recognized in OBEB expense
as follows:
Changes Subsequent to the Measurement Date
We are not aware of any changes subsequent to the June 30, 2023 Measurement Date that meet this requirement and
thus require a brief description under the GASB standard.
Deferred
Outflows of
Deferred
Inflows of
Differences between expected and actual experience -$ 366$
Changes of assumptions - 157
41 -
957 400
998$ 923$
6 N/A
Total Deferred Outflow/(Inflow) of Resources 1,004$ 923$
Net Deferred Outflow/(Inflow) of Resources
prior to post-measurement date contributions 75$
Net difference between projected and actual earnings on
Total Deferred Outflows/Inflows
Employer subsequent
1st Fiscal Year (329)$
2nd Fiscal Year (327)
3rd Fiscal Year 538
4th Fiscal Year 193
Total 75$
Deferred Outflow/(Inflow) of Resources (prior
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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OTHER POST-EMPLOYMENT BENEFITS (OPEB) CIS (IRSP):
Retiree Healthcare Insurance Premiums Subsidy
Plan Description
The City operates a single employer retiree benefit plan through the Citycounty Insurance Services that provides post-
employment health, dental vision and life insurance benefits to eligible employees and their spouses. The City is required
by Oregon Revised Statutes 243.303 to provide retirees and their dependents with group health insurance from the date of
retirement to age 65 at the same rate provided to current employees. Premiums for retirees are tiered and based upon the
premium rates available to active employees. The retiree is responsible for any portion of the premiums not paid by the
Employer. The implicit employer subsidy is measured as the expected health care cost per retiree and dependent, less the
gross premiums charged by the insurance carrier for that coverage. The subsidy is only measured for retirees and spouses
younger than age 65, at which point such retirees and spouses typically become eligible for Medicare. GASB Statement
75 is applicable to the City due only to this implicit rate subsidy. This “plan” is not a stand-alone plan, and therefore, does
not issue its own financial statements.
Funding Policy
When the City has retirees participating in their health insurance plan, it will, when applicable, collect insurance premiums
from all retirees each month and deposit them. The City will then pay healthcare insurance premiums for all retirees at
the applicable rate for each family classification.
At June 30, 2024, the City reported a net OPEB IRSP liability/(asset) of $58,173 for its proportionate share of the net OPEB
IRSP liability/(asset). The OPEB IRSP liability/(asset) was measured as of June 30, 2023, and the total OPEB IRSP lia-
bility/(asset) used to calculate the net OPEB IRSP liability/(asset) was determined by an actuarial valuation as of July 1,
2022. Consistent with GASB Statement No. 75, paragraph 59(a), The City’s proportion of the net OPEB IRSP liabil-
ity/(asset) is determined by comparing the employer’s actual, legally required contributions made during the fiscal year to
the Plan with the total actual contributions made in the fiscal year of all employers. As of the measurement date of June
30, 2023, the City’s OPEB IRSP expense/(income) for the year ended June 30, 2024 was $6,894.
Actuarial Methods and Assumptions - The City engaged an actuary to perform an evaluation as of July 1, 2022, using
entry age normal Actuarial Cost Method. The total OPEB liability was determined by an actuarial valuation as of the
valuation date, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to
the measurement date:
Fiscal Year Ending June 30, 2022 June 30, 2023 June 30, 2024
Discount Rate 2.16%3.54%3.65%
Other Key Actuarial Assumptions and
Methods
Valuation date July 1, 2020 July 1, 2022 July 1, 2022
Measurement date June 30, 2021 June 30, 2022 June 30, 2023
Inflation 2.50%2.40%2.40%
Salary increases 3.50%3.40%3.40%
Withdrawal, retirement, and mortality rates December 31, 2019 Oregon
PERS valuation
December 31, 2021 Oregon
PERS valuation
December 31, 2021 Oregon
PERS valuation
Election and Lapse Rates 40% of eligible employees
60% of male members and
35% of females members will
elect spouse coverage.
5% annual lapse rate
35% of eligible employees
60% of male members and
35% of females members will
elect spouse coverage.
5% annual lapse rate
35% of eligible employees
60% of male members and
35% of females members will
elect spouse coverage.
5% annual lapse rate
Actuarial cost method Entry Age Normal Entry Age Normal Entry Age Normal
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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OTHER POST-EMPLOYMENT BENEFITS (OPEB) CIS (IRSP) (Cont.):
Discount Rate
Under GASB 75, unfunded plans must use a discount rate that reflects a 20-year tax-exempt municipal bond yield or index
rate. The assumptions in this report reflect the Bond Buyer 20-Year General Obligation Bond Index. The discount rate in
effect for the June 30, 2023 reporting date 3.54%, and the discount rate in effect for the June 30, 2024 reporting date is
3.65%.
Health Care Cost Trend
The assumed medical and vision costs will increase 4.25% in the first year (July 1, 2022 premiums compared with July 1,
2021 premiums). In future years, the medical and vision cost trend varies between 6.75% and 3.75%.
Withdrawal, Retirement and Mortality Rates
They are generally using the rates adopted by the Oregon Public Employees Retirement System (OPERS) for its December
31, 2021 actuarial valuation of retirement benefits.
Election and Lapse Rates
They have assumed that a portion of future retirees and their spouses elect benefits, and that some of those later lapse
(drop) from those benefits. The assumptions are based on historical data for similar benefits for other public employers in
Oregon. For larger employers, they also consider specific historical experience; and for unique arrangements they consider
the incentives provided by those arrangements.
Sensitivity Analysis
The following presents the total OPEB IRSP liability of the Plan, calculated using the disclosure discount rate as well as
what the Plan's total OPEB IRSP 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 rate. A similar sensitivity analysis is then presented for changes in
the healthcare cost trend assumption.
1% Decrease Discount Rate 1% Increase
2.65% 3.65% 4.65%
Total OPEB liability from Implicit Rate
64,476$ 58,173$ 52,327$
Trend Rate
Total OPEB liability from Implicit Rate
48,656$ 58,173$ 69,515$
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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OTHER POST-EMPLOYMENT BENEFITS (OPEB) CIS (IRSP) (Cont.):
Participation
The following table represents the number of the City’s covered participants at the time of the actuarial study:
Changes in Net OPEB CIS IRSP Liability
Membership as of Valuation
Date July 1, 2022
Number of Members
Active Employees 18
Eliegible Retirees 0
Spouses of Ineligible Retirees 0
Total Participants 18
Changes in Total OPEB Liability
Increase
(Decrease)
Total OPEB
Liability
Balance as of June 30, 2023 $ 48,044
Changes for the year:
Service Cost 9,267
Interest 2,019
Effect of assumptions or other inputs (609)
Benefit payments (548)
Net OPEB Liability at June 30, 2024 $ 58,173
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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OTHER POST-EMPLOYMENT BENEFITS (OPEB) CIS (IRSP) (Cont.):
Components of OPEB IRSP Expense
Schedule of Deferred Inflows and Outflows of Resources for OBEB CIS IRSP
Other amounts currently reported as deferred outflows of resources and deferred inflows of resources related to other
postemployment benefits will be recognized in OPEB CIS IRSP expense as follows:
OPEB Expense
July 1, 2023 to
June 30, 2024
Service cost 9,267$
Interest on total OPEB liability 2,019
Recognition of Deferred
(Inflows)/Outflows of Resources
Recognition of economic/demographic
(gains) or losses (1,261)
Recognition of assumption changes (3,131)
OPEB Expense 6,894$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience 79$ 7,501$
Changes of Assumptions or Inputs 485 10,773
564$ 18,274$
Net Deferred Outflow/(Inflow) of Resources
prior to post-measurement date contributions (17,710)$
Total Deferred Outflows/Inflows
(prior to post-measurement date contributions)
Employer subsequent
1st Fiscal Year (3,640)$
2nd Fiscal Year (3,852)
3rd Fiscal Year (3,881)
4th Fiscal Year (2,229)
5th Fiscal Year (1,548)
Thereafter (2,560)
Total (17,710)$
Deferred Outflow/(Inflow) of Resources (prior
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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TAX ABATEMENTS:
The City uses property tax abatements to encourage business and economic development. The City has two tax abatement
programs: Low-Income Rental Housing Property Tax Exemption and Greater Redmond Enterprise Zone.
The City’s tax abatement programs reduce or eliminate the amount of property taxes that a property owner pays. The
revenue impact from property tax abatements consists of two components: revenue loss and revenue shift. Most property
taxes levied in the City are through fixed tax rates. With these levies, if a property is exempt from taxation, then the City
simply raises less money than if the property was taxable.
Some levies, mostly bond levies to repay debt, do not have a fixed tax rate and instead calculate the tax rate each year by
dividing the amount of tax revenue needed that year across the value of all taxable properties. In these cases, if a property
is exempt from tax the effect is to raise the overall tax rate on the remaining taxable properties. Therefore, the final amount
of tax raised for the City will remain the same because the tax burden is shifted to the other properties.
The Low-Income Rental Housing Property Tax Exemption (LIRHPTE) is enabled by Oregon Revised Statute (ORS)
307.515 – 307.535 and is designed to encourage the development of properties that are offered for rent or held to increase
low-income rental housing. Rental properties constructed after February 12, 1990, or rental properties owned by 501c (3)
non-profits that are offered for rent or held to develop low-income rental housing are eligible. Property must be rented
only to persons with income at or below 60 percent of the area median income based on US Department of Housing and
Urban Development criteria and must be rented at rates that reflect the full property tax reduction. The abatement applies
to real property taxes, which are reduced through a reduction of the property’s assessed value. Properties that meet the
requirements qualify for 100% exemption over 20 years. These tax abatement agreements do not include any provisions
for recapturing any abated taxes.
The City of Sisters is part of the Greater Redmond Enterprise Zone, as enabled by ORS 285C. The Zone was established
to stimulate economic success by providing tax incentives for employment, business, industry, and commerce and by
providing adequate levels of complementary assistance to community strategies for such interrelated goals as environ-
mental protection, growth management, and efficient infrastructure. The Greater Redmond Enterprise Zone offers a three-
tax exemption period, with a two-year extension granted, if the qualifying company creates jobs compensated at 150% of
Deschutes County’s annual wage as published by the Oregon Employment Department. For the basic, three-year enterprise
zone exemption period, the business needs to:
• Increase full-time, permanent employment of the firm inside the enterprise zone by greater than one new job or ten
percent.
• Enter into a first-source agreement with local job training providers.
• Maintain employment levels during the exemption period.
• Have no concurrent job losses more than 30 miles from the zone; and
• Satisfy local additional conditions, imposed in the Greater Redmond Enterprise Zone.
The Zone Sponsor may waive the required employment increase for investments of $25.0 million or more. Four or five
years of exemption in total can be granted with special approval from the Zone Sponsor. The requirements include the
basic three–year requirements, plus:
• Compensation for new jobs created must be at least 150 percent of the average wage for Deschutes County.
• Local approval by written agreement with the local Zone Sponsor; and
• Additional requirements that the local zone sponsor may reasonably request.
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
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TAX ABATEMENTS (Cont.)
The abatement applies to real and personal property taxes, which are reduced through a reduction of the assessed value.
The property taxes normally assessed on a new building/structure, or newly installed machinery and equipment qualify
for 100% exemption. Land, existing buildings, existing machinery and equipment, and minor personal property items are
not eligible for the exemption. Property is disqualified if it is used for an ineligible activity, such as retail operations, or if
the business substantially curtails operations or closes during the exemption period. When property becomes disqualified,
prior exempt taxes are billed for payment.
For the fiscal year ending June 30, 2024, the property tax abatements are as follows:
The reported property tax impacts were calculated using a post-division of tax rates. The amounts represent the amount of
assessed property taxes. The amount of revenue losses does not take into consideration early payment discounts or property
tax collection rates.
CONTINGENT LIABILITIES:
Amounts received or receivable from grantor agencies are subject to review and adjustment by grantor agencies, princi-
pally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of
the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined
at this time although the City expects such amount, if any, to be immaterial.
The City of Sisters has elected the "reimbursement" basis for unemployment claims to the State of Oregon Department of
Human Resources Employment Division. If a terminated employee collects unemployment compensation based upon
earnings from the City, the City will be required to reimburse the State of Oregon for the amount of unemployment com-
pensation paid. Amounts billed by the State of Oregon are charged to expenditures but amounts for which the City is
potentially liable as a result of claims not yet filed are unknown.
RISK MANAGEMENT:
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The City is a member of City-County Insurance Services (CIS), a
public entity risk pool currently operating a common risk management and insurance program. The City pays an annual
premium to CIS for insurance coverage.
Based on the experience of the City and pool, the City may be liable for an additional premium of up to approximately
20% of its initial premium or it may receive a refund. The City has never had to pay an additional premium. Predetermined
limits and deductible amounts are stated in the policy. There have been no significant reductions in coverage from the
prior years and settlements have not exceeded insurance coverage in the past three years.
Tax Abatement Propram
Amount of
Taxes
Abated
Low-Income Housing Property Tax Exemption 52,425$
Enterprise Zone 18,723$
CITY OF SISTERS NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2024
- 50 -
INTERFUND TRANSFERS:
Interfund transfers for the year ended June 30, 2024, were as follows:
These transfers occur on a routine basis and are used by the recipient funds for the normal operations of the funds.
NEW ACCOUNTING PRONOUNCEMENTS:
The GASB has issued the following statements and implementation guides that may affect the future financial statements
of the City:
1. Statement No. 101 “Compensated Absences.” The requirements of this Statement are effective for fiscal years
beginning after December 15, 2023 and all reporting periods thereafter.
2. Statement No. 102 “Certain Risk Disclosures.” The requirements of this Statement are effective for fiscal years
beginning after June 15, 2024 and all reporting periods thereafter.
3. Implementation Guide No. 2023-1, “Implementation Guidance Update - 2023” The requirements of this Imple-
mentation Guide will take effect for financial statements starting with the fiscal year that ends June 30, 2024.
4. Statement No. 103 “Financial Reporting Model Improvements.” The requirements of this Statement are effective
for fiscal years beginning after June 15, 2025 and all reporting periods thereafter.
5. Statement No. 104 “Disclosure of Certain Capital Assets.” The requirements of this Statement are effective for
fiscal years beginning after June 15, 2025 and all reporting periods thereafter.
Transfers Transfers
Out In
302,600$ -
7,000 -
12,100 -
- 50,300
8,600 280,000
330,300$ 330,300$
Fund
General Fund
Total
- 51 -
REQUIRED
SUPPLEMENTARY
INFORMATION
- 52 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis)Over
Original Final (See Note 1)(Under)
REVENUES:
Property Taxes 1,515,000$ 1,515,000$ 1,601,474$ 86,474$
Other Taxes 1,166,817 1,166,817 1,175,416 8,599
Intergovernmental 144,855 144,855 185,905 41,050
Licenses and Permits 556,500 556,500 581,224 24,724
Fines and Forfeitures 9,000 9,000 6,474 (2,526)
Investment Revenue 152,000 152,000 252,162 100,162
Charges for Service 45,175 45,175 43,200 (1,975)
Other Revenue 131,800 131,800 141,725 9,925
Total Revenues 3,721,147 3,721,147 3,987,580 266,433
EXPENDITURES:
Council-Manager 1,019,317 1,019,317 342,315 (677,002)
Finance & Administration 263,386 263,386 202,572 (60,814)
Maintenance 190,192 190,192 163,704 (26,488)
Tourism 375,000 375,000 402,999 27,999
Parks 435,197 435,197 393,136 (42,061)
Police 942,369 942,369 733,963 (208,406)
Community Development 887,706 887,706 755,238 (132,468)
Economic Development 125,869 125,869 98,777 (27,092)
Non-Departmental:
Capital Outlay 66,000 66,000 33,206 (32,794)
Operating Contingency 706,506 706,506 - (706,506)
Total Expenditures 5,011,542 5,011,542 3,125,910 (1,885,632)
Excess (Deficiency) of Revenues
Over Expenditures (1,290,395) (1,290,395) 861,670 2,152,065
OTHER FINANCING SOURCES / (USES):
Operating Transfer (Out)(302,600) (302,600) (302,600) -
Interfund Loan Proceeds 500,000 500,000 500,000 -
Interfund Loan Payments (500,000) (500,000) (500,000) -
Total Other Financing Sources (Uses) (302,600) (302,600) (302,600) -
Net Change in Fund Balance (1,592,995) (1,592,995) 559,070 2,152,065
Fund Balance - July 1, 2023 4,607,871 4,607,871 4,717,865 109,994
Fund Balance - June 30, 2024 3,014,876$ 3,014,876$ 5,276,935$ 2,262,059$
CITY OF SISTERS
For the Fiscal Year Ended June 30, 2024
GENERAL FUND
- 53 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis) Positive
Original Final (See Note 1) (Negative)
REVENUES:
State Highway Apportionment 262,317$ 262,317$ 285,842$ 23,525$
State Highway Taxes - Bike Trails 2,623 2,623 2,871 248
Intergovernmental Grants - - 10,882 10,882
Franchise Fees 2,514,695 2,514,695 923,419 (1,591,276)
Investment Revenue 42,000 42,000 77,246 35,246
Total Revenues 2,821,635 2,821,635 1,300,260 (1,521,375)
EXPENDITURES:
Personnel Services 484,922 484,922 401,687 (83,235)
Materials and Services 524,900 524,900 436,378 (88,522)
Capital Outlay 405,000 749,000 308,540 (440,460)
Contingency 168,304 168,304 - (168,304)
Total Expenditures 1,583,126 1,927,126 1,146,605 (780,521)
Excess (Deficiency) of Revenues
Over Expenditures 1,238,509 894,509 153,655 (740,854)
Other Financing Sources / (Uses)
Operating Transfer (Out)(7,000) (7,000) (7,000) -
Total Other Financing Sources 273,000 (7,000) (7,000) -
Net Change in Fund Balance 1,511,509 887,509 146,655 (740,854)
Fund Balance - July 1, 2023 - - 1,579,885 1,579,885
Fund Balance - June 30, 2024 1,511,509$ 887,509$ 1,726,540$ 839,031$
CITY OF SISTERS
Schedule of Revenues, Expenditures,
STREET FUND #03
For the Fiscal Year Ended June 30, 2024
and Changes in Fund Balance - Budget and Actual
- 54 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis) Over
Original Final (See Note 1) (Under)
REVENUES:
Interest on Investments 8,000$ 8,000$ 14,797$ 6,797$
Other Revenue 14,500 14,500 29,594 15,094
Total Revenues 22,500 22,500 44,391 21,891
EXPENDITURES:
Maintenance Department -$ -$ -$ -$
Total Expenditures - - - -
Net Change In Fund Balance 22,500 22,500 44,391 21,891
Fund Balance - July 1, 2023 292,097 292,097 292,810 713
Fund Balance - June 30, 2024 314,597$ 314,597$ 337,201$ 22,604$
For the Fiscal Year Ended June 30, 2024
CITY OF SISTERS
PARKING DISTRICT FUND #13
- 55 -
Fiscal
Year
Ended
1
Measurement
(a)
Employer's
proportion of
the net pension
(b)
Employer's
proportionate
pension liability
(c)
Employer's
as of
Measurement
(b/c)
Employer's
proportionate
share of the net
pension liability
(asset) as a
percentage of its
Plan fiduciary
a percentage
of the total
pension
2024 June 30, 2023 0.00989249% 1,852,931$ 1,211,824$ 152.90%81.7%
2023 June 30, 2022 0.00943046% 1,443,993 1,201,706 120.16%84.5%
2022 June 30, 2021 0.00941742% 1,126,934 1,080,207 104.33%84.5%
2021 June 30, 2020 0.00815195% 1,779,036 1,058,588 168.06%75.8%
2020 June 30, 2019 0.00902462% 1,561,043 919,697 169.73%80.2%
2019 June 30, 2018 0.00725073% 1,098,390 961,050 114.29%82.1%
2018 June 30, 2017 0.00841066% 1,133,760 778,567 145.62%83.1%
2017 June 30, 2016 0.00838791% 1,259,220 801,011 157.20%80.5%
2016 June 30, 2015 0.00830268% 476,695 782,710 60.90%91.9%
2015 June 30, 2014 0.00863735% (195,784) 759,194 -25.79%103.6%
2014 June 30, 2013 0.00863735% 440,777 806,159 54.68%92.0%
CITY OF SISTERS
SCHEDULE OF PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY
1Measurement date is one year in arrears.
Last 10 Fiscal Years*
PERS
- 56 -
Year
Ended
June 30,
(a)
required
contribution
(b)
Contributions in
relation to the
contractually
required
contribution
(a-b)
Contribution
deficiency
(excess)
(c)
Employer's
covered
payroll
(b/c)
Contributions
as a percent
of covered
payroll
2024 356,099$ 356,099$ -$ 1,405,315$ 25.34%
2023 293,048 293,048 - 1,211,824 24.18%
2022 277,246 277,246 - 1,201,706 23.07%
2021 226,023 226,023 - 1,080,207 20.92%
2020 223,640 223,640 - 1,058,588 21.13%
2019 149,444 149,444 - 919,697 16.25%
2018 159,776 159,776 - 961,050 16.63%
2017 109,100 109,100 - 778,567 14.01%
2016 111,829 111,829 - 801,011 13.96%
2015 113,378 113,378 - 782,710 14.49%
2014 112,592 112,592 - 759,194 14.83%
CITY OF SISTERS
- 57 -
Fiscal
Year
Ended
June 30,1
Measurement
Date
(a)
Employer's
proportion of the
net pension
liability (asset)
(b)
proportionate
pension liability
(asset)
(c)
Employer's
covered
payroll as of
Measurement
Date
(b/c)
Employer's
proportionate
share of the net
pension liability
(asset) as a
covered payroll
Plan fiduciary
a percentage
of the total
pension liability
2024 June 30, 2023 0.00397802% (14,566)$ 1,211,824$ -1.20% 201.6%
2023 June 30, 2022 0.00452507% (16,079) 1,201,706 -1.34% 194.6%
2022 June 30, 2021 0.00373563% (12,828) 1,080,207 -1.19% 183.9%
2021 June 30, 2020 0.00381486% (7,773) 1,058,588 -0.73% 150.1%
2020 June 30, 2019 0.00817729% (15,801) 919,697 -1.72% 144.4%
2019 June 30, 2018 0.00875430% (9,772) 961,050 -1.02% 124.0%
2018 June 30, 2017 0.00757956% (3,163) 778,567 -0.41% 108.9%
2017 June 30, 2016 0.00807745% 2,194 801,011 0.27%94.2%
*This schedule is presented to illustrate the requirement to show information for 10 years. However the full 10-year trend will be
presented for those years for which information is available
CITY OF SISTERS
SCHEDULE OF PROPORTIONATE SHARE OF THE
Last 10 Fiscal Years*
NET OPEB LIABILITY
OPEB RHIA
1Measurement date is one year in arrears.
- 58 -
Year
Ended
June 30,
(a)
Contractually
required
contribution
(b)
Contributions in
relation to the
contractually
required
contribution
(a-b)
Contribution
deficiency
(excess)
(c)
Employer's
covered
payroll
(b/c)
Contributions
as a percent
of covered
payroll
2024 6$ 6$ -$ 1,405,315$ 0.00%
2023 78 78 - 1,211,824 0.01%
2022 112 112 - 1,201,706 0.01%
2021 100 100 - 1,080,207 0.01%
2020 272 272 - 1,058,588 0.03%
2019 4,053 4,053 - 919,697 0.44%
2018 4,239 4,239 - 961,050 0.44%
2017 3,726 3,726 - 778,567 0.48%
CITY OF SISTERS
*This schedule is presented to illustrate the requirement to show information for 10 years. However the full
10-year trend will be presented for those years for which information is available
- 59 -
CITY OF SISTERS
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY
AND RELATED RATIOS
CITYCOUNTY INSURANCE SERVICES
Last 10 Fiscal Years*
2024 2023 2022 2021 2020
Total OPEB Liability
Service cost 9,267$ 5,369$ 5,216$ 3,657$ 3,291$
Interest on total OPEB liability 2,019 1,311 1,223 2,432 2,830
Effect of changes to benefit terms
Effect of economic/demographic gains or (losses)
Effect of assumption changes or inputs (609) (10,693) 274 (4,186) 1,805
Benefit payments (548) (2,376) (671) (8,325) (15,476)
Net change in total OPEB liability *10,129 (8,468) 6,042 (19,488) (7,550)
Total OPEB liability, beginning 48,044 56,512 50,470 69,958 77,508
Total OPEB liability, ending (a) *58,173 48,044 56,512 50,470 69,958
Covered payroll
Total OPEB liability as a % of covered payroll
2019 2018 2021 2020 2019
Total OPEB Liability
Service cost
Interest on total OPEB liability
Effect of economic/demographic gains or (losses)
Effect of assumption changes or inputs (8,030) (4,192)
Benefit payments (13,298) (11,951)
Net change in total OPEB liability *(9,609) (9,223) - - -
Total OPEB liability, beginning 87,117 96,340
Total OPEB liability, ending (a) *77,508 87,117 - - -
Covered payroll
Total OPEB liability as a % of covered payroll
** Totals may not agree due to rounding.
*This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years
are not reported in accordance with the current GASB standards, they should not be reported.
- 60 -
SUPPLEMENTARY
INFORMATION
- 61 -
Proprietary Funds
Water Funds
- 62 -
Water Utility
Fund
Water SDC
Fund
Total Water
Utility
ASSETS:
Current Assets:
Cash and Cash Equivalents 3,244,712$ -$ 3,244,712$
Accounts Receivable, Net 90,710 - 90,710
Inventory 56,628 - 56,628
Deposits 734 - 734
Total Current Assets 3,392,784 - 3,392,784
Non-Current Assets:
Restricted Cash and Cash Equivalents - 2,972,700 2,972,700
Net OPEB Asset - RHIA 2,345 - 2,345
Capital Assets, Non-Depreciable 362,636 - 362,636
Capital Assets, Depreciable, Net 5,172,629 3,434,341 8,606,970
Total Noncurrent Assets 5,537,610 6,407,041 11,944,651
Total Assets 8,930,394 6,407,041 15,337,435
DEFERRED OUTFLOW OF RESOURCES:
Pension Related Deferrals 129,940 - 129,940
OPEB Related Deferrals - RHIA and CIS 253 - 253
Total Deferred Outflow of Resources 130,193 - 130,193
LIABILITIES:
Current Liabilities:
Accounts Payable 15,604 5,638 21,242
Compensated Absences Payable 11,970 - 11,970
Customer Deposits 72,300 - 72,300
Total Current Liabilities 99,874 5,638 105,512
Long-Term Liabilities:
Net Pension Liability 298,296 - 298,296
Net OPEB Liability - CIS 9,365 - 9,365
Total Long-Term Liabilities 307,661 - 307,661
Total Liabilities 407,535 5,638 413,173
DEFERRED INFLOW OF RESOURCES:
Pension Related Deferrals 30,445 - 30,445
OPEB Related Deferrals - RHIA and CIS 3,091 - 3,091
Total Deferred Inflow of Resources 33,536 - 33,536
NET POSITION:
Net Investment in Capital Assets 5,535,265 3,434,341 8,969,606
Restricted for:
Systems Development - 2,967,061 2,967,061
Net Pension Asset 2,345 - 2,345
Unrestricted 3,081,908 - 3,081,908
Total Net Position 8,619,518$ 6,401,402$ 15,020,920$
CITY OF SISTERS
COMBINING STATEMENT OF NET POSITION
WATER FUNDS
June 30, 2024
- 63 -
Water Utility
Fund
Water SDC
Fund
Total Water
Utility
OPERATING REVENUES:
Charges for Services:
Water Charges 1,112,581$ 154,106$ 1,266,687$
Loan Income - - -
Other Revenue 218 - 218
Total Operating Revenues 1,112,799 154,106 1,266,905
OPERATING EXPENSES:
Personnel Services 366,543 3,890 370,433
Materials and Services 403,290 - 403,290
Depreciation 291,505 - 291,505
Total Operating Expenses 1,061,338 3,890 1,065,228
Operating Income (Loss)51,461 150,216 201,677
NON-OPERATING REVENUES (EXPENSES):
Interest Income 135,467 130,833 266,300
Total Non-Operating Revenues (Expenses)135,467 130,833 266,300
Income Before Other Revenues, Expenses, and Transfers 186,928 281,049 467,977
CAPITAL CONTRIBUTIONS AND TRANSFERS:
Capital Contributions 254,782 - 254,782
Transfers In 280,000 - 280,000
Transfers (Out)(8,600) - (8,600)
Total Capital Contributions and Transfers 526,182 - 526,182
Change in Net Position 713,110 281,049 994,159
Net Position, July 1, 2023 7,906,408 6,120,353 14,026,761
Net Position, June 30, 2024 8,619,518$ 6,401,402$ 15,020,920$
CITY OF SISTERS
WATER FUNDS
For the Fiscal Year Ended June 30, 2024
- 64 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis) Over
Original Final (See Note 1) (Under)
REVENUES:
Charges for Services 1,012,500$ 1,012,500$ 1,088,250$ 75,750$
Fees & Licenses 37,400 37,400 24,331 (13,069)
Investment Revenue 72,000 72,000 135,467 63,467
Other Revenue 280,000 280,000 218 (279,782)
Total Revenues 1,401,900 1,401,900 1,248,266 (153,634)
EXPENDITURES:
Personnel Services 412,974 412,974 372,668 (40,306)
Materials and Supplies 404,875 404,875 403,289 (1,586)
Capital Outlay 360,000 360,000 56,039 (303,961)
Total Expenditures 1,177,849 1,177,849 831,996 (345,853)
Excess (Deficiency) of Revenues
Over Expenditures 224,051 224,051 416,270 192,219
OTHER FINANCING SOURCES / (USES):
Operating Transfer In - - 280,000 280,000
Operating Transfer (Out)(8,600) (8,600) (8,600) -
Total Other Financing Sources (Uses)(8,600) (8,600) 271,400 280,000
Net Change In Fund Balance 215,451 215,451 687,670 472,219
Fund Balance - July 1, 2023 - - 2,617,213 2,617,213
Fund Balance - June 30, 2024 215,451$ 215,451$ 3,304,883$ 3,089,432$
Reconciliation to generally accepted accounting principles basis
Net Change in Fund Balance - from above 687,670$
Change in Pension Expense 6,125
Capital outlay that is capitalized 56,038
Contributed Capital 254,782
Depreciation Expense (291,505)
Change in Net Position as Reported in Proprietary Funds Statement
of Revenues, Expenses, and Changes in Net Position 713,110$
CITY OF SISTERS
For the Fiscal Year Ended June 30, 2024
WATER FUND
- 65 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis) Over
Original Final (See Note 1) (Under)
REVENUES:
System Development Charges 275,000$ 275,000$ 154,106$ (120,894)$
Interest on Investments 73,000 73,000 130,833 57,833
Total Revenues 348,000 348,000 284,939 (63,061)
EXPENDITURES:
Materials and Services 25,000 25,000 3,890 (21,110)
Capital Outlay - 5,000 1 (4,999)
Total Expenditures 25,000 30,000 3,891 (26,109) -
Net Change in Fund Balance 323,000 318,000 281,048 (36,952)
2,409,361 2,409,361 2,686,012 276,651
Fund Balance - June 30, 2024 2,732,361$ 2,727,361$ 2,967,060$ 239,699$
CITY OF SISTERS
WATER SDC FUND #11
For the Fiscal Year Ended June 30, 2024
- 66 -
Proprietary Funds
Sewer Funds
- 67 -
COMBINING STATEMENT OF NET POSITION
SEWER FUNDS
June 30, 2024
Sewer Fund
Sewer SDC
ASSETS:
Current Assets:
Cash and Cash Equivalents 2,552,451$ -$ 2,552,451$
Accounts Receivable, Net 122,611 - 122,611
Assessments Receivable - 2,994 2,994
Total Current Assets 2,675,062 2,994 2,678,056
Noncurrent Assets:
Restricted Cash and Cash Equivalents - 3,516,418 3,516,418
Capital Assets, Non-Depreciable 5,099,996 - 5,099,996
Capital Assets, Depreciable, Net 6,586,640 4,568,407 11,155,047
Total Noncurrent Assets 11,688,792 8,084,825 19,773,617
Total Assets 14,363,854 8,087,819 22,451,673
DEFERRED OUTFLOW OF RESOURCES:
Pension Related Deferrals 119,449 - 119,449
OPEB Related Deferrals - RHIA and CIS 232 - 232
Total Deferred Outflow of Resources 119,681 - 119,681
LIABILITIES:
Current Liabilities:
Accounts Payable 32,492 50,329 82,821
Compensated Absences Payable 11,515 - 11,515
Deposits 3,000 - 3,000
Unearned Revenue - 2,994 2,994
Current Portion of Long-Term Liabilities:
Bond Payable 256,000 - 256,000
Total Current Liabilities 303,007 53,323 356,330
Long-Term Liabilities:
Noncurrent Portion of Long-Term Liabilities:
Bond Payable, Net of Premum 4,023,004 - 4,023,004
Net Pension Liability 274,212 - 274,212
Total Long-Term Liabilities 4,305,825 - 4,305,825
Total Liabilities 4,608,832 53,323 4,662,155
DEFERRED INFLOW OF RESOURCES:
Pension Related Deferrals 27,987 - 27,987
OPEB Related Deferrals - RHIA and CIS 2,841 - 2,841
Total Deferred Inflow of Resources 30,828 - 30,828
NET POSITION:
Net Investment in Capital Assets 7,407,632 4,568,407 11,976,039
Restricted for:
Systems Development - 3,466,089 3,466,089
Net Pension Asset 2,156 - 2,156
Unrestricted 2,434,086 - 2,434,086
Total Net Position 9,843,874$ 8,034,496$ 17,878,370$
CITY OF SISTERS
- 68 -
SEWER FUNDS
For the Fiscal Year Ended June 30, 2024
Sewer Fund Sewer SDC Fund Total Sewer
OPERATING REVENUES:
Charges for Services:
Sewer Charges 1,503,450$ 211,132$ 1,714,582$
Other Revenue 31,984 - 31,984
Total Operating Revenues 1,535,434 211,132 1,746,566
OPERATING EXPENSES:
Personnel Services 311,917 - 311,917
Materials and Supplies 258,216 2,363 260,579
Depreciation 366,505 - 366,505
Total Operating Expenses 936,638 2,363 939,001
Operating Income (Loss)598,796 208,769 807,565
NON-OPERATING REVENUES (EXPENSES):
Interest Income 114,052 157,275 271,327
Interest Expense (94,269) (15,060) (109,329)
Total Non-Operating Revenues (Expenses)19,783 142,215 161,998
Income Before Other Revenues, Expenses, and Transfers 618,579 350,984 969,563
CAPITAL CONTRIBUTIONS AND TRANSFERS:
Transfers In 61,000 - 61,000
Transfers (Out)(12,100) (61,000) (73,100)
Total Capital Contributions and Transfers 48,900 (61,000) (12,100)
Change In Net Position 667,479 289,984 957,463
Net Position, July 1, 2023 9,176,395 7,744,512 16,920,907
Net Position, June 30, 2024 9,843,874$ 8,034,496$ 17,878,370$
CITY OF SISTERS
- 69 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis) Over
Original Final (See Note 1) (Under)
REVENUES:
Charges for Services 4,313,192$ 4,313,192$ 1,503,569$ (2,809,623)$
Licenses and Fees 9,650 9,650 5,455 (4,195)
Interest on Investments 60,000 60,000 114,052 54,052
Miscellaneous 5,000 5,000 26,410 21,410
Total Revenues 4,387,842 4,387,842 1,649,486 (2,738,356)
EXPENDITURES:
Personnel Services 404,562 404,562 336,637 (67,925)
Materials and Services 439,375 475,375 483,610 8,235
Debt Service:
Principal 184,000 184,000 184,000 -
Interest 147,920 147,920 147,920 -
Contingency 235,000 235,000 385,660 150,660
Total Expenditures 1,410,857 1,446,857 1,537,827 90,970
Excess (Deficiency) of Revenues
Over Expenditures 2,976,985 2,940,985 111,659 (2,829,326)
OTHER FINANCING SOURCES / (USES):
Operating Transfer (Out)(12,100) (12,100) (12,100) -
Total Other Financing Sources (Uses) (12,100) (12,100) (12,100) -
Net Change In Fund Balance 2,964,885 2,928,885 99,559 (2,829,326)
Fund Balance - July 1, 2023 2,540,007 2,540,007 2,540,007 -
Fund Balance - June 30, 2024 5,504,892$ 5,468,892$ 2,639,566$ (2,829,326)$
Reconciliation to generally accepted accounting principles basis
Net change in fund balance from above 99,559$
Change in Accrued Interest 13,338
Change in Pension Expense 24,720
Debt Principal Payments 184,000
Equity Transfer of Debt Service 61,000
Capital outlay that is capitalized 611,054
Bond Amortization 40,313
Depreciation Expense (366,505)
Change in Net Position as Reported in Proprietary Funds Statement
of Revenues, Expenses, and Changes in Net Position 667,479$
CITY OF SISTERS
SEWER FUND #5
For the Fiscal Year Ended June 30, 2024
- 70 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis) Over
Original Final (See Note 1) (Under)
REVENUES:
System Development Charges 375,000$ 375,000$ 211,132$ (163,868)$
Interest on Investments 86,000 86,000 157,275 71,275
Total Revenues 461,000 461,000 368,407 (92,593)
EXPENDITURES:
Materials and Services 25,000 50,000 2,363 (47,637)
Capital Outlay - - 90,761 90,761
Debt Service 76,060 76,060 76,060 -
Total Expenditures 101,060 126,060 169,184 43,124
Excess (Deficiency) of Revenues
Over Expenditures 359,940 334,940 199,223 (135,717)
3,266,866 3,266,866 3,266,866 -
Fund Balance - June 30, 2024 3,626,806$ 3,601,806$ 3,466,089$ (135,717)$
Reconciliation to generally accepted accounting principles basis
Net change in fund balance from above 199,223$
Debt Principal Payments 61,000
Equity Transfer of Debt Service (61,000)
Capital outlay that is capitalized 90,761
Change in Net Position as Reported in Proprietary Funds Statement
of Revenues, Expenses, and Changes in Net Position 289,984$
For the Fiscal Year Ended June 30, 2024
CITY OF SISTERS
SEWER SDC FUND #10
- 71 -
Combining Statements of Non-Major Governmental Funds
and
Schedules of Revenues, Expenditures and Changes in Fund Balances
of
Non–Major Special Revenue Funds
and
Other Governmental Funds
- 72 -
Non-Major
Special
Revenue
Non-Major
Capital
Combined
Non-Major
Debt
Service
ASSETS:
Cash & Investments 798,830$ 1,273,630$ 169,147$ 2,241,607$
Property Tax Receivable - - 9,894 9,894
Total Assets 798,830$ 1,273,630$ 179,041$ 2,251,501$
LIABILITIES:
Unearned Revenue -$ -$ -$ -$
Total Liabilities - - - -
Delinquent Property Tax Revenue Not Available - - 8,447 8,447
Total Deferred Inflows of Resources - - 8,447 8,447
FUND BALANCES:
Restricted for:
Capital Projects - 1,273,630 - 1,273,630
Urban Renewal Projects 798,830 - - 798,830
Committed for:
Debt Service - - 170,594 170,594
Total Fund Balances 798,830 1,273,630 170,594 2,243,054
Total Liabilities, Deferred Inflows
of Resources & Fund Balances 798,830$ 1,273,630$ 179,041$ 2,251,501$
CITY OF SISTERS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
(By Fund Type)
June 30, 2024
- 73 -
Non-Major
Special
Revenue
Non-Major
Capital
Combined
Non-Major
Total
REVENUES:
Taxes and Assessments -$ -$ 485,254$ 485,254$
Charges for Services - 145,546 - 145,546
Investment Revenue 21,503 53,784 14,762 90,049
Total Revenues 21,503 199,330 500,016 720,849
EXPENDITURES:
Current:
General Government 7,765 - - 7,765
Culture and Recreation - 6,125 - 6,125
Debt Service:-
Principal - - 40,000 40,000
Interest - - 10,320 10,320
Total Expenditures 7,765 6,125 50,320 64,210
Excess (Deficiency) of Revenues
Over Expenditures 13,738 193,205 449,696 656,639
OTHER FINANCING SOURCES (USES):
Operating Transfers In 500,000 - 50,300 550,300
Interfund Loan Proceeds (Out)- - (500,000) (500,000)
Total Other Financing Sources (Uses)500,000 - (449,700) 50,300
Net Change in Fund Balances 513,738 193,205 (4) 706,939
Fund Balances - July 1, 2023 285,092 1,080,425 170,598 1,536,115
Fund Balances - June 30, 2024 798,830$ 1,273,630$ 170,594$ 2,243,054$
CITY OF SISTERS
Combining Statement of Revenues, Expenditures,
NON-MAJOR GOVERNMENTAL FUNDS
(By Fund Type)
For the Fiscal Year Ended June 30, 2024
- 74 -
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget vs Actual
Non–Major Special Revenue Fund
Urban Renewal Project Fund
- 75 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis) Over
Original Final (See Note 1) (Under)
REVENUES:
Interest on Investments 100$ 100$ 21,503$ 21,403$
Total Revenues 100 100 21,503 21,403
EXPENDITURES:
Materials and services 26,000$ 26,000$ 7,765$ (18,235)$
Capital Outlay 359,000 672,884 - (672,884)
Contingency 394,983 81,099 - -
Total Expenditures 779,983 779,983 7,765 (691,119)
Excess (Deficiency) of Revenues
Over Expenditures (779,883) (779,883) 13,738 712,522
OTHER FINANCING SOURCES / (USES):
Interfund Loan Proceeds In 500,000$ 500,000$ 500,000$ -$
Total Other Financing Sources (Uses)500,000 500,000 500,000 -
Net Change In Fund Balance (279,883) (279,883) 513,738 712,522
Fund Balance - July 1, 2023 279,883 279,883 285,092 5,209
Fund Balance - June 30, 2024 -$ -$ 798,830$ 717,731$
Reconciliation to generally accepted accounting principles basis
Net change in fund balance from above 513,738
Interfund Transfer 500,000
Interfund Loan Proceeds In (500,000)
Change in Net Position as Reported in Governmental Funds Statement
of Revenues, Expenses, and Changes in Fund Balance 513,738$
For the Fiscal Year Ended June 30, 2024
CITY OF SISTERS
Schedule of Revenues, Expenditures,
and Changes in Fund Balance - Budget and Actual
URBAN RENEWAL PROJECT FUND
- 76 -
Schedules of Revenues, Expenditures and Changes in Fund Balances
Budget vs Actual
Capital Projects Fund
Street SDC Fund – A Major Fund
Park SDC Fund – A Non-Major Fund
- 77 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis) Over
Original Final (See Note 1) (Under)
REVENUES:
System Development Charges 350,000$ 350,000$ 214,443$ (135,557)$
Interest on Investments 55,000 55,000 112,576 57,576
Total Revenues 405,000 405,000 327,019 (77,981)
EXPENDITURES:
Highways and Streets 4,387,842$ 4,387,842$ -$ (4,387,842)$
Materials and Services 110,000 110,000 130,468 20,468
Capital Outlay 30,000 30,000 - (30,000)
Total Expenditures 4,527,842 4,527,842 130,468 (4,397,374)
Excess (Deficiency) of Revenues
Over Expenditures (4,122,842) (4,122,842) 196,551 4,319,393
2,206,722 2,206,722 2,317,702 110,980
Fund Balance - June 30, 2024 (1,916,120)$ (1,916,120)$ 2,514,253$ 4,430,373$
For the Fiscal Year Ended June 30, 2024
CITY OF SISTERS
STREET SDC FUND #7
- 78 -
- 79 -
Combining Statements
and
Schedules of Revenues, Expenditures and Changes in Fund Balances
Budget vs Actual
Debt Service Funds
City Hall Debt Service Fund – A Non-Major Fund
Urban Renewal Debt Service Fund – A Non-Major Fund
- 80 -
City Hall
Fund
Urban
Service Fund Total
ASSETS:
Cash & Investments 6,583$ 162,564$ 169,147$
Property Tax Receivable - 9,894 9,894
Total Assets 6,583$ 172,458$ 179,041$
LIABILITIES:
Accounts Payable -$ -$ -$
- - -
DEFERRED INFLOWS OF RESOURCES:
Delinquent Property Tax Revenue Not Available -$ 8,447$ 8,447$
Total Deferred Inflows of Resources - 8,447 8,447
FUND BALANCES:
Committed for:
Debt Service 6,583 164,011 170,594
Total Fund Balances 6,583 164,011 170,594
6,583$ 172,458$ 179,041$
CITY OF SISTERS
COMBINING BALANCE SHEET
For the Fiscal Year Ended June 30, 2024
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
- 81 -
City Hall
Debt
Service
Fund
Urban
Renewal
Fund Total
REVENUES:
Taxes and Assessments -$ 485,254$ 485,254$
Investment Revenue 409 14,353 14,762
Total Revenues 409 499,607 500,016
EXPENDITURES:
Debt Service:
Principal 40,000$ -$ 40,000$
Interest 10,320 - 10,320
Total Expenditures 50,320 - 50,320
Excess of Revenues Over (Under) Expenditures (49,911) 499,607 449,696
OTHER FINANCING SOURCES (USES):
Operating Transfers In 50,300$ -$ 50,300$
Interfund Loan Proceeds (Out)- (500,000) (500,000)
Total Other Financing Sources (Uses):Total Other Financing Sources (Uses): 50,300 (500,000) (449,700)
Excess of Receipts and Other Financing Sources
Over (Under) Expenditures and Other Uses 389 (393) (4)
Fund Balances - July 1, 2023 6,194 164,404 170,598
Fund Balances - June 30, 2024 6,583$ 164,011$ 170,594$
CITY OF SISTERS
Combining Statement of Revenues, Expenditures,
NON-MAJOR DEBT SERVICE FUNDS
For the Fiscal Year Ended June 30, 2024
- 82 -
Actual Variance with
Amounts Final Budget
Budgeted Amounts (Budgetary Basis) Over
Original Final (See Note 1) (Under)
REVENUES:
Interest on Investments 100$ 100$ 409$ 309$
Total Revenues 100 100 409 309
EXPENDITURES:
Debt Service
Principal 40,000$ 40,000$ 40,000$ -$
Interest 10,320 10,320 10,320 -
Total Expenditures 50,320 50,320 50,320 -
Excess (Deficiency) of Revenues
Over Expenditures (50,220) (50,220) (49,911) 309
OTHER FINANCING SOURCES / (USES):
Operating Transfer In 50,300$ 50,300$ 50,300$ -$
Total Other Financing Sources 50,300 50,300 50,300 -
Net Change In Fund Balance 80 80 389 309
Fund Balance - July 1, 2023 6,235 6,235 6,194 (41)
Fund Balance - June 30, 2024 6,315$ 6,315$ 6,583$ 268$
CITY OF SISTERS
CITY HALL DEBT SERVICE FUND #18
For the Fiscal Year Ended June 30, 2024
- 83 -
SISTERS URBAN RENEWAL AGENCY
(A Component Unit of the City of Sisters, Oregon)
Variance
Actual with
Amounts Final Budget
(Budgetary Basis) Positive
Original Final (See Note 1) (Negative)
REVENUES:
Property Tax Revenue 443,500$ 443,500$ 485,254$ 41,754$
Investment Revenue 21,000 21,000 14,353 (6,647)
Total Revenues 464,500 464,500 499,607 35,107
EXPENDITURES:
Debt Service
Principal - - - -
Interest - - - -
Total Expenditures - - - -
Excess of Revenues Over (Under) Expenditures 464,500 464,500 499,607 35,107
OTHER FINANCING SOURCES / (USES):
Interfund Loans (Out)(500,000) (1,100,000) (500,000) 600,000
Total Other Financing Sources (500,000) (1,100,000) (500,000) 600,000
Net Change In Fund Balances (35,500) (635,500) (393) 635,107
Fund Balance - July 1, 2023 - - 164,404 164,404
Fund Balance - June 30, 2024 (35,500)$ (635,500)$ 164,011$ 799,511$
Schedule of Revenues, Expenditures,
and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2024
Budgeted Amounts
- 84 -
OTHER
INFORMATION
Additional
Supporting Schedules
- 85 -
SCHEDULE OF LONG-TERM DEBT TRANSACTIONS & FUTURE REQUIREMENTS
Full Faith and Credit Refunding Bonds Series 2016 - Sewer
Current Year Activity:
Outstanding New Issues Principal Outstanding Due
Balance and Interest and Interest Balance Within
July 1, 2023 Matured Retired June 30, 2024 One Year
Principal 3,790,000$ -$ 184,000$ 3,606,000$ 192,000$
Interest - 147,920 147,920 - 140,400
Total 3,790,000$ 147,920$ 331,920$ 3,606,000$ 332,400$
Future Requirements:
Fiscal Year
Ended June 30, Principal Interest Total
Interest
Rate
2025 192,000$ 140,400$ 332,400$ 4.00%
2026 199,000 132,580 331,580 4.00%
2027 209,000 124,420 333,420 4.00%
2028 216,000 115,920 331,920 4.00%
2029 225,000 107,100 332,100 4.00%
2030 170,000 99,200 269,200 4.00%
2031 175,000 92,300 267,300 4.00%
2032 185,000 85,100 270,100 4.00%
2033 190,000 77,600 267,600 4.00%
2034 200,000 69,800 269,800 4.00%
2035 205,000 61,700 266,700 4.00%
2036 215,000 53,300 268,300 4.00%
2037 225,000 44,500 269,500 4.00%
2038 235,000 35,500 270,500 4.00%
2039 245,000 25,900 270,900 4.00%
2040 255,000 15,700 270,700 4.00%
2041 265,000 5,300 270,300 4.00%
Total 3,606,000$ 1,286,320$ 4,892,320$
On January 28, 2016 the City issued full faith and credit refunding bonds in the amount of $6,180,000. Proceeds from the
issuance were used to payoff the City’s loans payable for the City Hall Facility, sewer system, Lazy Z property, and USDA
revenue bonds. The bonds are held by US Bank and have a variable interest rate (2-4%) per year. Payments are made annually
with interest payments made on Dec 1 and Jun 1, and principal payments Jun 1. The bond is divided into Governmental and
Business Type Activities, and has different payment schedules for the various debts. The original portion of the debt related to
the Sewer activities (Business Type) was $4,869,000 with payments due through fiscal year ending June 30, 2041. This debt is
comprised of 3 individual debt schedules referred to as 92-04, 92-06 and Sewer Refunding.
CITY OF SISTERS
For the Fiscal Year Ended June 30, 2024
- 86 -
SCHEDULE OF LONG-TERM DEBT TRANSACTIONS & FUTURE REQUIREMENTS
Full Faith and Credit Refunding Bonds Series 2016 - Lazy Z
Current Year Activity:
Outstanding New Issues Principal Outstanding Due
Balance and Interest and Interest Balance Within
July 1, 2023 Matured Retired June 30, 2024 One Year
Principal 407,000$ -$ 61,000$ 346,000$ 64,000$
Interest - 15,060 15,060 - 12,560
Total 407,000$ 15,060$ 76,060$ 346,000$ 76,560$
Future Requirements:
Fiscal Year
Ended June 30, Principal Interest Total
Interest
Rate
2025 64,000$ 12,560$ 76,560$ 4.00%
2026 66,000 9,960 75,960 4.00%
2027 69,000 7,260 76,260 4.00%
2028 72,000 4,440 76,440 4.00%
2029 75,000 1,500 76,500 4.00%
Total 346,000$ 35,720$ 381,720$
On January 28, 2016 the City issued full faith and credit refunding bonds in the amount of $6,180,000. Proceeds from the
issuance were used to payoff the City’s loans payable for the City Hall Facility, sewer system, Lazy Z property, and USDA
revenue bonds. The bonds are held by US Bank and have a variable interest rate (2-4%) per year. Payments are made
annually with interest payments made on Dec 1 and Jun 1, and principal payments Jun 1. The bond is divided into
Governmental and Business Type Activities, and has different payment schedules for the various debts. The original portion of
the debt related to the LazyC property (Business Type) was $776,000 with payments due through fiscal year ending June 30,
2029.
CITY OF SISTERS
For the Fiscal Year Ended June 30, 2024
- 87 -
SCHEDULE OF LONG-TERM DEBT TRANSACTIONS
For the Fiscal Year Ended June 30, 2024
Full Faith and Credit Refunding Bonds Series 2016 - City Hall and Streets
Current Year Activity:
Outstanding New Issues Principal Outstanding Due
Balance and Interest and Interest Balance Within
July 1, 2023 Matured Retired June 30, 2024 One Year
Principal 278,000$ -$ 40,000$ 238,000$ 44,000$
Interest - 10,320 10,320 - 8,640
Total 278,000$ 10,320$ 50,320$ 238,000$ 52,640$
Future Requirements:
Fiscal Year Interest
2025 44,000$ 8,640$ 52,640$ 4.00%
2026 45,000 6,860 51,860 4.00%
2027 47,000 5,020 52,020 4.00%
2028 52,000 3,040 55,040 4.00%
2029 50,000 1,000 51,000 0.00%
Total 238,000$ 24,560$ 262,560$
On January 28, 2016 the City issued full faith and credit refunding bonds in the amount of $6,180,000. Proceeds from the
issuance were used to payoff the City’s loans payable for the City Hall Facility, sewer system, Lazy Z property, and
USDA revenue bonds. The bonds are held by US Bank and have a variable interest rate (2-4%) per year. Payments are
made annually with interest payments made on Dec 1 and Jun 1, and principal payments Jun 1. The bond is divided into
Governmental and Business Type Activities, and has different payment schedules for the various debts. The original
portion of the debt related to the City Hall and Streets (Governmental) was $535,000 with payments due through fiscal
CITY OF SISTERS
- 88 -
STATISTICAL SECTION
- 89 -
STATISTICAL SECTION
This section provides further details as a framework for a better understanding of the financial statements.
Financial Trends
These schedules contain trend information to help the reader understand how financial performance
has changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local
revenue sources, property taxes.
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current
levels of outstanding debt and the City’s ability to issue additional debt.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the en-
vironment within which the City’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the in-
formation in the City’s financial report relates to the services the City provides and the activities it
performs.
Sources: The information in these schedules is derived from the annual comprehensive financial reports for the relevant
year, unless otherwise noted.
- 90 -
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Governmental Activities:
Net investment in capital assets 14,513$ 14,433$ 13,535$ 12,117$ 11,339$ 10,086$ 9,445$ 9,026$ 7,239$ 5,926$
Restricted 6,494 5,737 3,626 3,530 2,542 1,869 1,639 1,639 1,492 1,738
Unrestricted 4,904 3,612 3,782 2,780 2,154 2,358 1,632 1,251 1,476 2,251
Total governmental activities net position 25,911 23,782 20,943$ 18,427$ 16,035$ 14,313$ 12,716$ 11,916$ 10,207$ 9,915$
Business-Type Activities:
Net investment in capital assets 20,945 24,870 20,243$ 19,111$ 16,845$ 15,804$ 8,625$ 13,953$ 14,200$ 14,305$
Restricted 6,438 5,958 5,258 4,730 4,659 4,084 3,807 3,049 2,133 2,170
Unrestricted 5,516 119 3,855 3,043 2,801 2,506 8,599 1,826 1,560 1,037
Total business-type activities net position 32,899 30,947 29,356$ 26,884$ 24,305$ 22,394$ 21,031$ 18,828$ 17,893$ 17,512$
Primary Government:
Net investment in capital assets 35,458 39,303 33,778$ 31,228$ 28,184$ 25,890$ 18,070$ 22,979$ 21,439$ 20,231$
Restricted 12,932 11,695 8,884 8,260 7,201 5,953 5,446 4,688 3,625 3,908
Unrestricted 10,420 3,731 7,637 5,823 4,955 4,864 10,231 3,077 3,036 3,288
Total primary government net position 58,810$ 54,729$ 50,299$ 45,311$ 40,340$ 36,707$ 33,747$ 30,744$ 28,100$ 27,427$
CITY OF SISTERS, OREGON
Net Position By Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
- 91 -
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Program Revenues
Governmental activities:
Charges for services,fees and fines
General government 142$ 428$ 287$ 258$ 303$ 282$ 261$ 376$ 430$ 551$
Public safety 7 7 - - - - - - - -
Culture and recreation 43 40 450 425 312 331 326 203 210 168
Community Development 29 15 - - - - - - - -
Highways and streets - - 63 99 25 77 6 7 29 11
Capital Projects 941 1,247
Operating grants and contributions - - 530 579 501 455 416 437 368 341
Capital grants and contributions 507 162 1,162 1,483 1,266 1,394 748 1,981 498 526
Total governmental activities program revenues 1,669 1,899 2,492 2,844 2,407 2,539 1,757 3,004 1,535 1,597
Business-type activities:
Charges for services:
Water 1,267 1,409 1,101 1,046 893 783 722 636 615 592
Refuse - - - - - - - - - -
Sewer 1,747 1,909 1,430 1,266 1,127 1,017 952 902 856 848
Operating grants - 72 - - - - - - - -
Capital grants 255 166 2,137 2,276 1,688 1,134 2,182 998 701 967
Total business-type activities program revenues 3,269 3,556 4,668 4,588 3,708 2,934 3,856 2,536 2,172 2,407
Total primary government program revenues 4,938 5,455 7,160 7,432 6,115 5,473 5,613 5,540 3,707 4,004
Expenses
Governmental activities:
General government 581 540 1,425 1,708 1,636 1,431 1,604 1,610 1,642 1,288
Public safety 760 778 714 641 612 588 566 566 544 523
Culture and recreation 877 1,107 393 361 314 295 305 282 330 252
Community development 854 729 12 12 15 4 6 4 32 103
Highways and streets 1,360 1,001 1,077 1,072 948 1,266 827 792 731 606
Interest on long term obligations 2 4 14 21 28 30 38 46 48 43
Public Works 164 147 - - - - - - - -
Depreciation - - - - - - - - - -
Total governmental actvities expenses 4,598 4,306 3,635 3,815 3,553 3,614 3,346 3,300 3,327 2,815
Business-type activities:
Water 1,065 987 1,031 931 845 736 743 701 687 557
Sewer 1,048 1,233 1,186 1,115 1,079 985 946 922 1,073 865
Total business-type activities expenses 2,113 2,220 2,217 2,046 1,924 1,721 1,689 1,623 1,760 1,422
Total primary government expenses 6,711 6,526 5,852 5,861 5,477 5,335 5,035 4,923 5,087 4,237
Net Expense
Governmental activities (2,929) (2,407) (1,142) (972) (1,147) (1,075) (1,532) (297) (1,792) (1,217)
Business-type activites 1,156 1,336 2,452 2,541 1,785 1,212 2,167 914 412 984
Total primary government net expense (1,773)$ (1,071)$ 1,310$ 1,569$ 638$ 137$ 635$ 617$ (1,380)$ (233)$
*2015 governmental activities include a prior period adjustment of $(269,463) and $(107,782) for change in accounting principal due to GASB 68.
**2018 government and business activities include a prior period adjustment of $(55,532) and $(27,325) for change in accounting principals due to GASB 75.
(amounts expressed in thousands)
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position
CITY OF SISTERS, OREGON
- 92 -
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
General Revenues and Other Changes in Net Position
General revenues:
Property taxes levied for:
General purposes 1,609$ 1,432$ 1,367$ 1,248$ 1,173$ 1,093$ 975$ 919$ 878$ 816$
Debt service 485 439 405 406 296 282 225 196 152 121
Franchise and public service taxes 923 887 1,786 1,586 1,222 1,163 1,072 813 973 772
Interest and investment earnings 547 286 56 51 111 103 59 34 22 22
Other Taxes and Assessments 1,565 1,544 - - - - - - - -
Intergovernmental Tax Turnover 186 634 - - - - - - - -
Miscellaneous 1 1 21 51 47 19 35 22 8 21
Contributed Revenue - - - - - - - - - -
Gain (loss) on disposal of asset - - - - - - - - - (139)
Transfers (259) 21 23 22 21 11 22 22 50 21
Total governmental activities 5,057 5,244 3,658 3,364 2,870 2,671 2,388 2,006 2,083 1,634
Business-type activities:
Contributed Revenue - - - - - - - - - -
Interest and investment earnings 538 274 43 59 147 162 84 43 20 13
Miscellaneous 259 3 - - - - - - - -
Transfers - (21) (23) (22) (21) (11) (22) (22) (50) (21)
Total business-type activities 797 256 20 37 126 151 62 21 (30) (8)
Total primary government 5,854 5,500 3,678 3,401 2,996 2,822 2,450 2,027 2,053 1,626
Change in Net Position
Governmental activities 2,128 2,839 2,516 2,392 1,723 1,597 855 1,710 291 416
Business-type activities 1,952 1,592 2,472 2,578 1,910 1,363 2,230 935 381 977
Total primary government change in net position 4,080 4,431 4,988 4,970 3,633 2,960 3,085 2,645 672 1,393
Net Position Beginning
Governmental activities 23,782 20,943 18,427 16,035 12,716 12,716 11,861 10,206 9,915 9,499
Business-type activities 30,948 29,356 26,884 24,305 21,031 21,031 18,801 17,893 17,512 16,535
Total primary government net position-beginning 54,730 50,299 45,311 40,340 33,747 33,747 30,662 28,099 27,427 26,034
Net Position Ending
Governmental activities 23,782 23,782 20,943 18,427 16,035 14,313 12,716 11,916 10,207 9,915
Business-type activities 30,948 30,948 29,356 26,884 24,305 22,394 21,031 18,828 17,893 17,512
Total Primary Government Net Position 54,730$ 54,730$ 50,299$ 45,311$ 40,340$ 36,707$ 33,747$ 30,744$ 28,100$ 27,427$
*2015 governmental activities include a prior period adjustment of $(269,463) and $(107,782) for change in accounting principal due to GASB 68.
**2018 government and business activities include a proir period adjustment of $(55,532) and $(27,325) for change in accounting principals due to GASB 75.
Source: Current and prior years' financial statements
CITY OF SISTERS, OREGON
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
- 93 -
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Combined General Fund
Advance to Other Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Restricted - - 13,422 13,422 13,422 35,267 32,582 35,267 37,169 58,492
Committed - - 378,918 245,477 245,477 242,017 230,834 242,017 176,949 150,615
Unassigned 5,276,935 4,717,864 2,788,817 2,124,188 1,516,516 1,275,374 1,042,302 995,005 1,219,059 1,645,881
Total general fund 5,276,935 4,717,864 3,181,157 2,383,087 1,775,415 1,552,658 1,305,718 1,272,289 1,433,177 1,854,988
All Other Govermental Funds
Restricted 5,514,423$ 5,270,823$ 3,612,141$ 3,516,827$ 2,528,661$ 1,833,823$ 1,892,844$ 1,603,806$ 1,432,636$ 1,679,194$
Committed 1,306,625 455,690 1,481,793 1,304,946 1,112,787 840,768 616,989 468,195 295,901 506,628
Unassigned -
Total all other governmental funds 6,821,048 5,726,513 5,093,934 4,821,773 3,641,448 2,674,591 2,509,833 2,072,001 1,728,537 2,185,822
Total governmental funds 12,097,983$ 10,444,377$ 8,275,091$ 7,204,860$ 5,416,863$ 4,227,249$ 3,815,551$ 3,344,290$ 3,161,714$ 4,040,810$
1 Information is present for years ended subsequent to the implementation of GASB 34.
The City implemented GASB 54 in the 2011 fiscal year and the Reserve Fund was combined with the General Fund for external reporting. Information on the
new fund balance categories is shown on a prospective basis.
CITY OF SISTERS, OREGON
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
- 94 -
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenues
Property taxes 2,776,890$ 1,895,650$ 1,773,342$ 1,658,301$ 1,468,027$ 1,370,878$ 1,201,327$ 1,112,868$ 1,031,320$ 944,861$
Other taxes 773,967 1,443,738 1,263,577 1,105,477 798,753 838,550 781,087 721,951 627,772 568,135
Intergovernmental 185,905 634,074 457,131 577,543 564,525 846,242 331,255 526,700 465,183 522,945
Franchise Fees 923,419 887,367 610,663 571,747 508,783 439,101 386,744 343,790 324,542 308,032
Licenses and Fines 581,224 706,471 686,245 650,375 577,508 572,303 545,558 555,359 611,019 688,968
Fines and forfeitures 6,474 7,309 7,360 1,539 1,560 1,010 2,138 1,750 2,746 3,838
System development charges 214,443 540,109 660,877 776,850 590,898 252,600 290,518 272,505 87,974 101,376
Charges for services 188,746 40,399 46,143 38,305 36,161 37,361 34,200 25,977 24,875 23,533
Rental income - 4,800 11,400 9,000 9,000 9,000 9,000 - 4,500 9,000
Grants 10,882 162,119 - - - - - - - -
Interest on Investments 546,830 275,130 55,806 51,447 111,059 103,229 58,620 34,634 22,178 22,054
Other Revenues 171,319 450,329 67,415 133,686 62,476 81,067 94,957 24,749 32,800 25,303
Total revenues 6,380,099 7,047,495 5,639,959 5,574,270 4,728,750 4,551,341 3,735,404 3,620,283 3,234,909 3,218,045
Expenditures
Current:
552,652 489,687 1,352,454 1,531,748 1,387,716 1,328,888 1,389,947 1,417,302 1,379,928 1,304,765
Public safety 733,963 753,134 714,408 640,635 611,849 588,316 565,688 565,688 543,930 523,010
Public works 163,704 147,857 - - - - - - - -
Culture and recreation 802,260 1,146,084 373,771 315,532 291,899 284,517 291,776 264,472 278,802 276,400
Community development 854,015 728,520 96,125 11,831 15,626 3,891 3,933 3,794 4,352 6,288
Highways and streets 968,533 892,858 709,891 692,342 578,999 525,668 563,651 558,015 474,973 492,042
Capital outlay 341,746 688,439 1,006,974 418,595 460,671 1,201,794 224,507 392,441 1,203,769 652,972
Debt service
Principal 40,000 39,000 324,464 171,158 180,670 190,904 202,989 197,916 281,717 58,714
Interest 10,320 11,900 18,808 25,937 33,021 35,370 43,211 59,692 43,728 41,786
Total expenditures 4,467,193 4,897,479 4,596,895 3,807,778 3,560,451 4,159,348 3,285,703 3,459,320 4,211,199 3,355,977
Revenues over (under) expenditures 1,912,906 2,150,016 1,043,064 1,766,492 1,168,299 391,993 449,701 160,963 (976,290) (137,932)
Other Financing Sources (Uses)
Issuance of debt - - - - - - - - 567,525 1,253,318
Sale of fixed assets - - 2,836 - - 8,503 - - 1,250 -
Bond Premium - - - - - - - - 62,644 -
Payment to refund debt - - - - - - - - (584,130) -
Operating transfers in 1,050,300 1,250,900 615,300 52,500 52,000 20,000 53,320 53,320 331,777 80,900
Operating transfers out (1,309,600) (1,230,000) (592,600) (31,000) (30,680) (8,800) (31,760) (31,760) (281,835) (60,031)
Total other financing sources (uses)(259,300) 20,900 25,536 21,500 21,320 19,703 21,560 21,560 97,231 1,274,187
Special Item
Payment for early extinguishment of debt - - - - - - - -
1,653,606$ 2,170,916$ 1,068,600$ 1,787,992$ 1,189,619$ 411,696$ 471,261$ 182,523$ (879,059)$ 1,136,255$
Debt service as a percentage of
noncapital expenditures 1%1% 10.6%6.2%7.4%8.3%8.7%9.2% 12.1%3.9%
1 Information is presented for years ended subsequent to the implementation of GASB 34.
CITY OF SISTERS, OREGON
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
- 95 -
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Function/Program
Governmental activities
General government 141,725$ 427,941$ 355,755$ 401,226$ 426,986$ 351,999$ 271,578$ 385,290$ 539,547$ 621,802$
Public safety 6,474 7,309 - - - - 28,897 90,566 28,832 26,215
Culture and recreation 43,200 40,399 688,797 677,326 580,160 545,311 520,964 417,308 259,752 316,955
Public works 726,770 1,246,580 - - - - - - - -
Community Development 29,594 14,717 - - - - - - - -
Highways and streets 214,443 162,119 1,448,113 1,764,776 1,399,361 1,641,590 992,365 2,110,158 707,578 632,146
Total governmental activities 1,162,206 1,899,065 2,492,665 2,843,328 2,406,507 2,538,900 1,813,804 3,003,322 1,535,709 1,597,118
Business-type activities
Water 1,266,905 1,574,700 1,953,559 2,013,858 1,704,340 1,333,217 1,918,279 1,071,855 927,672 1,104,184
Refuse - - - - - - - - - -
Sewer 1,746,566 1,981,471 2,715,046 2,573,199 2,003,996 1,600,450 1,938,411 1,464,692 1,244,171 1,302,664
Total business-type activities 3,013,471 3,556,171 4,668,605 4,587,057 3,708,336 2,933,667 3,856,690 2,536,547 2,171,843 2,406,848
Total Primary government 4,175,677$ 5,455,236$ 7,161,270$ 7,430,385$ 6,114,843$ 5,472,567$ 5,670,494$ 5,539,869$ 3,707,552$ 4,003,966$
Source: Current and prior year's financial statements
CITY OF SISTERS, OREGON
Program Revenues by Function/Program
Last Ten Fiscal Years
(accrual basis of accounting)
- 96 -
General
Fund Transient
Property Room
Year Taxes Taxes
2015 821,193 406,944
2016 878,897 448,523
2017 917,960 537,629
2018 976,048 594,874
2019 1,090,298 648,398
2020 1,172,697 616,987
2021 1,252,392 902,256
2022 1,367,788 1,063,023
2023 1,445,447 1,106,860
2024 1,587,796 1,110,224
Source: Current and prior year's financial statements
CITY OF SISTERS, OREGON
(modified accrual basis of accounting)
Last Ten Fiscal Years
Tax Revenues by Source, Governmental Funds
- 97 -
Fiscal
Year Total Taxable Total Measure 5
Ended Real Manufactured Personal Public Assessed Direct Real Market
June 30, Property Structures Property Utility Value Tax Rate Value (RMV)
2015 314,574,619 234,790 7,944,760 3,454,400 326,208,569 2.6417 389,737,373
2016 342,164,332 287,830 7,816,100 4,380,500 354,648,762 2.6417 438,553,487
2017 360,681,270 253,060 8,320,750 4,148,900 373,403,980 2.6417 499,843,058
2018 381,849,486 279,105 9,173,430 3,692,100 394,994,121 2.6417 559,333,811
2019 420,121,862 263,560 10,550,190 4,998,800 435,934,412 2.6417 669,725,583
2020 455,701,658 275,560 11,798,560 4,650,600 472,426,378 2.6417 761,685,129
2021 497,961,758 305,090 12,306,540 5,287,300 515,860,688 2.6417 862,235,060
2022 542,463,099 349,537 13,484,830 5,287,300 561,584,766 2.6417 1,014,296,975
2023 580,593,964 329,500 16,034,600 6,516,100 603,474,164 2.6417 1,233,094,890
2024 630,781,013$ 340,740$ 16,628,450$ 5,648,610$ 653,398,813$ 2.6417 1,486,033,107$
From Tax and Assessment Summary District tax summaries
CITY OF SISTERS, OREGON
Assessed Valuation and Actual Values of Taxable Property
Last Ten Fiscal Years
- 98 -
Total
Camp Direct &
Fiscal General Urban Deschutes School 1 Sherman Overlapping
Year Fund Renewal Total County District #6 COCC 2 SPRD 3 Rates
2013 2.53 0.63 3.16 3.32 5.76 0.73 0.21 2.84 16.02
2014 2.53 0.60 3.13 3.21 5.72 0.72 0.21 2.85 15.84
2015 2.57 0.39 2.96 3.22 5.84 0.72 0.21 2.80 15.75
2016 2.56 0.45 3.01 3.27 5.76 0.72 0.21 2.84 15.81
2017 2.54 0.55 3.09 3.23 6.24 0.72 0.21 2.85 16.34
2018 2.54 0.60 3.14 3.07 6.15 0.72 0.21 2.81 16.10
2019 2.52 0.68 3.20 3.08 6.13 0.70 0.36 2.72 16.19
2020 2.53 0.65 3.18 3.09 6.11 0.70 0.36 2.80 16.24
2021 2.49 0.83 3.32 3.04 5.97 0.69 0.36 2.79 16.17
2022 2.49 0.76 3.25 3.45 5.98 0.69 0.36 2.78 16.51
2023 2.49 0.75 3.24 3.35 5.96 0.66 0.36 2.78 16.35
2024 2.49 0.77 3.26 3.57 5.94 0.66 0.36 2.77 16.56
*The table reflects permanent rates that were levied each fiscal year by the entity identified
1 School District #6 includes Sisters School District and Education Service District (ESD)
2 COCC - Central Oregon Community College
3 SPRD - Sisters Parks and Recreation District
Overlapping RatesCity of Sisters*
CITY OF SISTERS, OREGON
Property Tax Rates - Direct and Overlapping Governments
(Per $1,000 of Assessed Valuation)
Last Ten Fiscal Years
- 99 -
Collected within the
Fiscal Year of the Levy Total Collections to Date
Fiscal
Year Tax Levy Collections in
Ended for the Percentage Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy
2015 962,333 919,535 95.55% 39,601 959,136 99.67%
2016 1,064,203 1,012,770 95.17% 44,994 1,057,764 99.40%
2017 1,150,311 1,097,521 95.41% 35,637 1,133,157 98.51%
2018 1,231,814 1,183,488 96.08% 9,148 1,192,636 96.82%
2019 1,411,002 1,355,617 96.07% 37,240 1,392,857 98.71%
2020 1,491,890 1,434,618 96.16% 38,388 1,473,005 98.73%
2021 1,698,455 1,636,053 96.33% 46,197 1,682,249 99.05%
2022 1,820,719 1,755,936 96.44% 48,859 1,804,795 99.13%
2023 1,954,667 1,884,190 96.39% 52,751 1,936,941 99.09%
2024 2,149,858 2,068,945 96.24%2,127,102 98.94%
CITY OF SISTERS, OREGON
Property Tax Levies and Collections
Last Ten Fiscal Years
(modified accrual basis of Accounting)
- 100 -
Real Property Percentage of Total
Taxpayer Assessed Valuation Rank Assessed Valuation
BEND-THIRD LLC ETAL $8,175,600 1 1.41%
THRIVIFY LLC 9,031,410 2 1.56%
WILLITTS LLC 6,129,200 3 1.06%
RII LUNDGREN MILL LLC 3,047,560 4 0.52%
PONDEROSA LODGE INC 5,347,600 5 0.92%
PENN STREET LLC 4,902,690 6 0.84%
LAIRD SUPERFOOD INC 1,090,950 7 0.19%
HAYDEN HOMES LLC 4,316,460 8 0.74%
OXBOW FLATS LLC 2,854,900 9 0.49%
MT HOOD SISTERS LLC 3,209,400 10 0.55%
$48,105,770
Total Assessed Valuation $630,781,013
Source: Deschutes County Assessor's Office
CITY OF SISTERS, OREGON
Principal Taxpayers
City of Sisters
6/30/2024
- 101 -
Business-type Activities
Total Percentage
Fiscal Bonds Notes Revenue Notes Primary of Personal
2015 - 1,904,730 4,572,964 1,727,785 8,205,479 9.50%2,190
2016 545,656 1,072,843 6,237,293 - 7,855,792 7.63%2,472
2017 561,835 881,184 6,075,912 16,892 7,535,823 6.78%2,502
2018 523,015 719,695 5,839,531 - 7,082,241 5.83%2,540
2019 482,195 557,291 5,660,150 5,959 6,705,595 4.83%2,725
2020 438,375 415,622 5,353,769 4,509 6,212,275 3.69%2,985
2021 395,555 282,464 5,101,389 - 5,779,408 2.87%3,286
2022 317,000 - 4,433,000 - 4,750,000 2.08%3,367
2023 278,000 - 4,197,000 - 4,475,000 1.79%3,489
2024 277,000 - 4,188,000 - 4,465,000 1.44%3,823
Governmental Activities
CITY OF SISTERS, OREGON
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type
- 102 -
Percentage of Net Bonded
General Total Taxable Debt to Debt
Fiscal Obligation Assessed Value of Per Capita
Year Population Bonds Value (000)'s Property Value (000)'s
2015 2,190 0 326,209 0.00%-
2016 2,472 0 354,649 0.00%-
2017 2,502 0 373,404 0.00%-
2018 2,540 0 394,994 0.00%-
2019 2,725 0 435,934 0.00%-
2020 2,985 0 472,426 0.00%-
2021 3,286 0 515,861 0.00%-
2022 3,367 0 561,585 0.00%-
2023 3,489 0 603,474 0.00%-
2024 3,823 0 653,399 0.00%-
CITY OF SISTERS, OREGON
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
- 103 -
ORS 287.004 provides a debt limit on general obligation bonds of 3% of the real market value of all taxable property
within the City's boundaries.
Less:Total GO Debt
Fiscal Real Market Debt Limit Debt General Obligation Legal as %
Year Value Rate Limit Debt Debt Margin of Debt Limit
2015 389,737,373 3%11,692,121 - 11,692,121 0.00%
2016 438,553,487 3%13,156,605 - 13,156,605 0.00%
2017 499,843,058 3%14,995,292 - 14,995,292 0.00%
2018 559,333,811 3%16,780,014 - 16,780,014 0.00%
2019 669,725,583 3%20,091,767 - 20,091,767 0.00%
2020 761,685,129 3%22,850,554 - 22,850,554 0.00%
2021 862,235,060 3%25,867,052 - 25,867,052 0.00%
2022 1,014,296,975 3%30,428,909 - 30,428,909 0.00%
2023 1,233,094,890 3%36,992,847 - 36,992,847 0.00%
2024 1,486,033,107 3%44,580,993 - 44,580,993 0.00%
CITY OF SISTERS, OREGON
Legal Debt Margin Information
Last Ten Fiscal Years
- 104 -
Percent Amount
Applicable to Applicable to
Jurisdiction Total Net Debt City of Sisters City of Sisters
Direct Debt:
City of Sisters 4,475,000$ 100% 4,475,000$
Overlapping Debt:
Central Oregon Community College 39,020,000 1.44%561,966
Central Oregon Regional Housing Authority 1,650,200 1.69%27,811
Deschutes County 23,775,000 1.69%400,680
Deschutes County SD (Sisters)43,301,920 22.99% 9,955,588
Deschutes County Public Library 189,200,000 1.69% 3,188,588
High Desert ESD 2,309,592 1.54%35,464
Sisters RFPD (Camp Sherman)865,000 40.01%346,062
300,121,712 4.84% 14,516,159
Total Direct and Overlapping Debt:304,596,712$ 6.23% 18,991,159$
Source:
Debt Management Division, Oregon State Treasury
Notes:
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 Sisters.
This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne
by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and
therefore responsible for repaying debt, of each overlapping government.
CITY OF SISTERS, OREGON
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
For the fiscal year ended June 30, 2024
- 105 -
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Operating Revenues:
Charges for Services 810,622$ 839,625$ 883,605$ 933,380$ 970,331$ 1,095,941$ 1,189,785$ 1,328,767$ 1,420,979$ 1,498,545$
Licenses and Fees 11,061 2,800 6,200 4,842 8,753 10,578 19,330 14,410 5,441 4,905
Rental Income 24,000 13,000 12,000 13,000 10,000 16,000 125 -
Interest on Investments 3,893 4,785 10,845 18,078 33,348 31,434 12,271 8,530 57,664 114,052
Miscellaneousj 1,869 1,194 1,793 6,685 29,078 5,337 63,192 250,222 100,891 31,984
Total Operating Revenues 851,445$ 861,404$ 914,443$ 975,985$ 1,051,511$ 1,159,289$ 1,284,703$ 1,601,929$ 1,584,975$ 1,649,486$
Operating Expenditures
Personal Services 153,970$ 179,186$ 195,525$ 227,329$ 251,979$ 286,617$ 300,977$ 334,539$ 330,756$ 336,637$
Materials and Services 208,291 323,166 239,787 240,103 250,473 290,202 288,250 324,229 539,692 483,609
Total Operating Expenditures 362,261$ 502,352$ 435,312$ 467,432$ 502,452$ 576,819$ 589,227$ 658,768$ 870,448$ 820,247$
Net Operating Revenues 489,184 359,052 479,131 508,553 549,059 582,470 695,476 943,161 714,527 829,239
Other Resources:
Beginning Sewer Fund Balances 896,919$ 997,382$ 1,086,518$ 1,203,402$ 1,328,250$ 1,532,422$ 1,743,825$ 1,758,098$ 2,175,950$ 2,539,998$
Total Resources 1,386,103$ 1,356,434$ 1,565,649$ 1,711,955$ 1,877,309$ 2,114,892$ 2,439,301$ 2,701,259$ 2,890,477$ 3,369,238$
Debt Service
368,940 363,475 334,679 339,051 333,284 334,153 335,974 332,245 332,140 331,920
Coverage with Net Operating Revenues 1.33 0.99 1.43 1.50 1.65 1.74 2.07 2.84 2.15 2.50
Coverage with Total Resources 3.76 3.73 4.68 5.05 5.63 6.33 7.26 8.13 8.70 10.15
j Includes revenues tied to wastewater disposal in connection with fighting forest fires.
k Includes debt service on the USDA Loans, the BotC Sewer Loan (and initial loan it refunded) and a loan from the Department of Environmental
Quality which the City paid off January 12, 2016
For Fiscal Year 2015-2016, debt service is net of bond issuance/payoff related activity
CITY OF SISTERS, OREGON
Historical Sewer Revenues and Expenditures
- 106 -
Per Capita
Fiscal Personal Personal School Unemployment
Year Population Income Income Enrollment Rate
2013 2,115 53,498,925 25,295 1,148 9.60%
2014 2,115 67,696,920 32,008 1,141 7.80%
2015 2,190 86,408,640 39,456 1,105 6.20%
2016 2,472 103,020,600 41,675 1,736 5.00%
2017 2,502 111,176,370 44,435 1,684 3.80%
2018 2,540 121,434,860 47,809 1,100 3.80%
2019 2,725 138,852,375 50,955 1,109 3.90%
2020 2,985 168,494,295 56,447 1,115 12.30%
2021 3,286 201,155,776 61,216 1,076 5.20%
2022 3,367 228,090,681 67,743 1,115 3.40%
2023 3,489 249,906,603 71,627 1,165 3.90%
2024 3,823 309,758,575 81,025 1,188 3.70%
Data Sources
1 Center for Population Research and Census, Portland State University
2 Estimation; Calculated, Popluation multiplied by Per Capita Personal Income
3 Per Capita Income as reported by Economic Research, Federal Reserve Bank of St. Louis
4 Sisters School District #6
5 Unemployment Rate is at the Deschutes County level.
CITY OF SISTERS, OREGON
Demographic and Economic Statistics
Last Ten Fiscal Years
2024
Employe Employees Rank
Sisters School District 170 1
United States Forest Service 114 2
Sisters Coffee Company 94 3
ESI Solutions 87 4
Roth Home 72 5
Ray's Food Place 56 6
Personalized Nutrients 47 7
Metabolic Maintenance 46 8
Five Pine Lodge & Conf. Center 42 9
Three Creeks Brewing 37 10
765
2014
Sisters School District 135 1
GFP Enterprises 95 2
Sistesr Coffee 66 3
Five Pine Lodge 61 4
Three Creeks Brewing 54 5
Ray's Food Place 50 6
McDonalds 47 7
Energyneering Systems 41 8
Metabolic Maintenance 35 9
Sisters Athletic Club 35 10
619
CITY OF SISTERS, OREGON
Principal Employers within the City
Current and Ten Years Prior
Source: Economic Development of Central Oregon
- 107 -
- 108 -
Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Governmental activities:
General government 1.40 1.40 1.10 1.10 1.30 1.30 1.40 1.90 1.98 2.65
Culture and recreation 1.40 1.40 1.70 1.60 1.30 1.30 1.35 1.63 1.75 1.70
Community development 3.70 3.40 2.40 1.65 1.85 1.85 1.65 1.80 1.75 1.65
Tourism - - 0.30 0.30 - - - - - -
Streets and highways 3.13 3.00 2.70 2.65 2.55 2.55 2.65 2.41 2.45 2.85
Total governmental activities 9.63 9.20 8.20 7.30 7.00 7.00 7.05 7.74 7.93 8.85
Business-type activities:
Water 2.74 2.50 2.55 2.50 2.65 2.65 2.50 2.43 2.56 2.20
Sewer 2.63 2.30 2.25 2.20 2.35 2.35 2.20 2.13 2.26 1.70
Refuse
Total business-type activities 5.37 4.80 4.80 4.70 5.00 5.00 4.70 4.56 4.82 3.90
Total primary government budgeted FTE 15.00 14.00 13.00 12.00 12.00 12.00 11.75 12.30 12.75 12.75
City of Sisters
Management and exempt 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 4.00
Temporary employees 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.00 1.00
Total Employees 20.50 19.50 18.50 17.50 17.50 17.50 17.25 17.80 18.75 17.75
CITY OF SISTERS, OREGON
Full Time Equivalent City Employees
by Function/Program
Last Ten Fiscal Years
- 109 -
FUNCTION/PROGRAM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Governmental Activities:
Street
Street miles 30.05 29.9 29.9 29.7 29.3 29.1 29.1 28.6 28.4 28.4
Street resurfing miles 0.37 0.35 0.47 0.45 0.6 0.4 1 1 0.45 0.22
Culture and recreation
Parks 8 8 8 8 8 8 8 8 8 8
Special event permits issued 34 35 36 3 2 48 38 51 49 43
Business-type Activities:
Water
Water mains (miles)41.0 40.9 40.7 40.4 39.8 39.3 39.1 38.4 30.3 30.3
Average daily water consumption -CCF1 108,138 110,365 109,284 110,512 94,189 98,919 90,260 77,160 77,568 76,515
Sewer
Sanitary sewers (miles)31.26 31.17 31.15 30.9 30.9 30.6 30.4 30 29.5 28.9
Maximum daily treatment capacity 396,000 gpd 396,000 gpd 396,000 gpd 396,000 gpd 396,000 gpd 396,000 gpd 396,000 gpd 396,000 gpd 396,000 gpd 396,000 gpd
Average daily sewer treatment 219,000 219,000 218,000 216,000 204,000 203,000 gpd 197,000 gpd 197,000 gpd 197,000 gpd 195,000 gpd
11,000 cubic feet
CITY OF SISTERS,OREGON
Operating Indicators by Function/Program
Last Ten Fiscal years
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FUNCTION/PROGRAM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Governmental Activities
General Government
Buildings owned-all structures 25 24 24 24 24 24 24 24 23 23
Vehicles/Equip (i.e. trailers, mowers)12 12 12 11 11 10 10 10 9 9
Vehicles (i.e. cars & pick ups)-excluding police 14 13 12 12 11 10 12 12 12 12
Vehicles (i.e. dump trucks & bucket trucks)-excluding fire 7 7 7 7 7 7 8 8 8 8
Heavy Equipment (i.e. CAT, grader, etc.)12 12 12 12 12 11 11 10 10 10
Streets and Highways
Miles of streets maintained by City:
Paved 30.1 28.4 28.4 28.2 27.8 27.6 27.6 27.1 26.9 26.9
Unpaved 0.4 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Bridges and underpasses 3 3 3 3 3 3 3 3 3 3
Business-type Activities
Water
Reservoirs 1 1 1 1 1 1 1 1 1 1
Wells 4 4 3 3 3 3 3 3 3 3
Wastewater
Treatment plant 1 1 1 1 1 1 1 1 1 1
Lift Stations 4 4 4 4 4 4 4 4 4 4
CITY OF SISTERS, OREGON
Capital Asset and Infrastructure Statistics by Function/Program
Last Ten Fiscal Years
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REPORTS ON OTHER LEGAL
AND REGULATORY REQUIREMENTS
CITY OF SISTERS
INDEPENDENT AUDITOR'S REPORT
REQUIRED BY OREGON STATE REGULATIONS
As of June 30, 2024
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To the Governing Body of the City of Sisters
Sisters, Oregon
We have audited the basic financial statements of the City of Sisters as of and for the year ended June 30, 2024 and have issued our
report thereon dated January 23, 2025. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America.
Compliance
As part of obtaining reasonable assurance about whether the City of Sisters’ financial statements are free of material misstatement,
we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of
Oregon Revised Statutes as specified in Oregon Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for
Audits of Oregon Municipal Corporations, noncompliance with which could have a direct and material effect on the determination of
financial statements amounts. 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.
We performed procedures to the extent we considered necessary to address the required comments and disclosures which included,
but were not limited to the following:
Deposit of public funds with financial institutions (ORS Chapter 295).
Indebtedness limitations, restrictions and repayment.
Budgets legally required (ORS Chapter 294).
Insurance and fidelity bonds in force or required by law.
Programs funded from outside sources.
Highway revenues used for public highways and roads (ORS Chapters 294, 368 & 373).
Authorized investment of surplus funds (ORS Chapter 294).
Public contracts and purchasing (ORS Chapters 279A, 279B, 279C).
In connection with our testing nothing came to our attention that caused us to believe the City was not in substantial compliance with
certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in
Oregon Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corpora-
tions.
OAR 162-10-0230 Internal Control
In planning and performing my audit, we considered the City‘s internal control over financial reporting as a basis for designing our
auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City internal control over financial reporting.
This report is intended solely for the information and use of the City Council and management of City of Sisters and the Oregon
Secretary of State and is not intended to be and should not be used by anyone other than these parties.
Steve Tuchscherer, CPA
Umpqua Valley Financial
Roseburg, Oregon
January 23, 2025