HomeMy WebLinkAboutCity of Roseburg - Public Financial ReportPopular Annual
Financial Report
For the Fiscal Year Ended June 30, 2021
City of Roseburg, Oregon
2 City of Roseburg FY 2021 Popular Annual Financial Report
Table of Contents
Letter from the City Manager ...... Page 3
Roseburg Leadership ................... Page 4
City Council Priorities ................. Page 5
About Roseburg ........................... Page 6
Overview of Financial Results ..... Page 7
Net Position ................................. Page 8
Statement of Activities ................. Page 9
Budget ........................................ Page 10
Financial Policies ........................ Page 11
Revenue Overview ...................... Page 12
Expenses Overview ..................... Page 14
Financial Planning ...................... Page 16
Local Economy .......................... Page 18
Contact Information .................. Page 20
The information in this report is drawn from the City of Roseburg Annual
Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021
and is consistent with GAAP. Please review the ACFR online, or email Finance
Director Ron Harker at finance@cityofroseburg.org to request a copy or with any
questions about this report.
www.cityofroseburg.org/departments/finance/annual-reports 3
Letter from the City Manager
4 City of Roseburg FY 2021 Popular Annual Financial Report
Roseburg Leadership
Roseburg operates under the Council-Manager form of Government. The City Council
has eight members elected by ward to four-year terms, with one Council position in
each of four wards elected every two years. The Mayor, who presides at the Council
meetings, is elected for a two-year term. Council adopts legislation and policies to
direct the City and appoints a City Manager to administer all City operations and
personnel except the Municipal Judge.
The City’s administration is committed to professionalism and efficiency. The City
provides a full range of municipal services including, police, fire, emergency medical
services, municipal court, community development, library, parks, recreational and
cultural activities, airport, water, storm water management, general public works,
central services, administration and other services associated with a full-service city.
Elected Officials
Appointed Officials
Nikki Messenger, City Manager
Jason Mahan, Municipal Court Judge
Mayor Rich Councilor Eggers Councilor Moothart Councilor Zielinski Coun. Briggs Loosley
Ward 1 Ward 1 Ward 2 Ward 2
Term 12/31/22 Term 12/31/22 Term 12/31/24 Term 12/31/24 Term 12/31/22
Councilor Prawitz Councilor Cotterell Councilor Cole Counselor Sipos
Ward 3 Ward 3 Ward 4 Ward 4
Term 12/31/24 Term 12/31/22 Term 12/31/22 Term 12/31/24
www.cityofroseburg.org/departments/finance/annual‐reports 5
City Council Priorities
In January 2020, Council concluded its current goal setting process and adopted a resolution outlining
goals for the organization for the next few years. The purpose of goal setting was, and is, to provide a
priority framework for financial and human resource allocation to meet the needs of our community as
outlined by our elected governing body. Resolution 2020-01 included six goals which are listed below:
Goal – Develop and implement policies to enhance housing opportunities.
Goal – Implement transportation funding policies to meet identified community needs.
Goal – Enhance community livability and public safety.
Goal- Take a proactive role in community economic development and revitalization
Goal- Update and implement the City’s Emergency Preparedness Plan
Goal – Explore strategies to address issues related to unhoused individuals within the community
While the goals are in no particular order, each speaks to important issues in our community and each
will be dependent on strong leadership and sound financial planning.
Additionally, Council adopted several action items for each goal to provide guidance on how the goals
will be achieved. For further information regarding the adopted goals and their related action items
please refer to the Annual Comprehensive Financial Report’s (ACFR) Transmittal Letter that can be
found on page iii and iv of the ACFR for the year ending June 30, 2021. The ACFR is available online at
www.cityofroseburg.org/departments/finance/annual-reports
6 City of Roseburg FY 2021 Popular Annual Financial Report
About Roseburg
The City of Roseburg, timber capital of the
nation, was incorporated in 1872. From its
founding to present day, the area’s greatest
wealth has been its forests. Douglas County
contains the largest stand of old growth
timber in the world. Roseburg is situated at
the heart of the Hundred Valleys of the
Umpqua in scenic Southwestern Oregon.
Adjacent to Interstate 5, it is 123 miles
north of the California state line and
approximately 70 miles south of Eugene,
the state’s third largest city. Roseburg is
approximately 80 miles inland from the
Pacific Ocean and 80 miles west of Diamond
Lake at the summit of the Oregon Cascades.
It is less than 100 miles from Crater Lake
National Park.
Roseburg is the largest city in Douglas
County and the 26th largest city in Oregon.
The City, the county seat of Douglas County,
is the center of government and commerce
for the county.
FY 2020 Fact Figure
Date of Incorporation 1872
Form of Government Council/Manager
Area in square miles 10.6
City Property Tax Rate: $8.48/$1,000 TAV
City Bonded Debt Tax Rate: $0.00/$1,000 TAV
Total Property Tax Rate: $15.26/$1,000 TAV
City Share of Total: 56%
Total Operating Budget: $54.08 million
Population (2021 Estimate): 23,701
Employees (Budgeted Positions): 171.35
Outstanding Debt: $4.134 million
Bond Rating: Aa3
FY 2020 Fact Figure
Parks and Open Space: 428 acres
City Maintained Roads: 121 miles
Water Lines Maintained: 197 miles
Daily Average Water Production 4.98 million gallons
Number of Calls for Service ‐ Police 32,813
Emergency Responses ‐ Fire 5,886
Regional Airport Runway Length 5,000 feet
Airport Hangars 98
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Overview of Financial Results
The following summary highlights are taken directly from the Management’s Discussion and
Analysis section of the fiscal year 2021 Annual Comprehensive Financial Report (ACFR); all
figures are reported in thousands; net position is the difference between the total assets
and deferred outflows and the total liabilities and deferred inflows:
The assets and deferred outflows of the City of Roseburg exceeded its liabilities
and deferred inflows at June 30, 2021 by $216,653 (net position). Of this amount,
$12,709 (unrestricted net position) may be used to meet the City’s ongoing
obligations to citizens and creditors.
The City’s total net position at June 30, 2021 increased by $722 from June 30,
2020. The increase in the total net position is primarily the result of an increase
to the City’s Cash and Investments of $8,051.
The City’s total liabilities increased by $5,047 from $33,913 to $38,959,736 in the
current year. While regular debt service payments were made as scheduled, a
$3,947 increase to the Net Pension Liability is the primary driving force for the
increase to liabilities.
At June 30, 2021, the City’s governmental funds reported combined ending fund
balances of $20,176, an increase of $3,241 from the prior year.
At June 30, 2021, the City’s business-type activities reported combined ending
net position of $88,854 an increase of $1,051 over the prior year. Unrestricted
net position increased by $2,742 to $16,105.
At June 30, 2021, the unassigned fund balance for the General fund was $9,948
or 40 percent of total General Fund expenditures and other financing uses.
8 City of Roseburg FY 2021 Popular Annual Financial Report
Net Position
The Statement of Net Position reflects a healthy financial condition as of June 30,
2021. The assets and deferred outflows of resources of the City exceeded its
liabilities and deferred inflow of resources by $216.7 million at the close of fiscal year
2021.
The net position is presented as a high-level summary overview of the City’s financial
position. For greater detail, see page 15 of the City’s Annual Comprehensive Financial
Report, available online at www.cityofroseburg.org/departments/finance/annual-
reports.
As of
June 30, 2021
As of
June 30, 2020
As of
June 30, 2019
As of
June 30, 2018
As of
June 30, 2017
Assets
Current assets 50,186,235$ 35,635,199$ 34,156,936$ 31,207,037$ 30,443,434$
Capital and other 206,105,921 208,898,333 208,905,129 205,242,933 199,811,626
Total assets 256,292,156 244,533,532 243,062,065 236,449,970 230,255,060
Deferred Outflow of Resources
Pension 9,485,682 8,140,956 8,513,710 8,326,155 13,972,578
Other Postemployment Benefits 355,223 383,726 51,393 52,515 ‐
Total Deferred Outflow 9,840,905 8,524,682 8,565,103 8,378,670 13,972,578
Liabilities
Current liabilities 4,534,495 2,834,190 2,240,270 2,988,845 1,948,852
Long‐term liabilities 34,425,241 31,078,668 28,563,307 29,411,810 34,305,651
Total Liabilities 38,959,736 33,912,858 30,803,577 32,400,655 36,254,503
Deferred Inflow of Resources
Pension 1,987,568 1,836,204 2,476,857 1,741,477 1,206,666
Other Postemployment Benefits 1,573,922 1,377,551 1,562,752 21,035 ‐
Lease Resources 6,958,587 ‐ ‐ ‐ ‐
Total Deferred Inflow 10,520,077 3,213,755 4,039,609 1,762,512 1,206,666
Net Position 216,653,248$ 215,931,601$ 216,783,982$ 210,665,473$ 206,766,469$
Statement of Net Position
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Statement of Activities
The Statement of Activities reports all financial activity for the fiscal year ended June
30, 2021.
This statement presents high-level summary information about how the City’s net
assets changed during the fiscal year as a result of all financial activity (i.e. revenues
and expenses). Total revenues exceeded expenses by $722 thousand primarily due
to strong appreciation in property values that translated into strong property tax
growth and increased grant revenues. For greater detail, see pages 16 and 17 of the
City’s Annual Comprehensive Financial Report, available online at
www.cityofroseburg.org/departments/finance/annual-reports.
FY 2019
Revenues 45,323,889$ 43,098,203$ 50,415,434$ 46,817,583$ 41,552,278$
Expenses (44,602,242) (43,950,584) (44,296,925) (41,442,094) (42,277,992)
Increase in net position 721,647 (852,381) 6,118,509 5,375,489 (725,714)
Net position ‐ beginning 215,931,601 216,783,982 210,665,473 206,766,469 207,686,479
Restatement ‐ ‐ ‐ (1,476,485) ¥ (194,296) ᶬ
Net position ‐ ending 216,653,248$ 215,931,601$ 216,783,982$ 210,665,473$ 206,766,469$
¥ Restatement required to recognize Other Post Employment Benefit (OPEB) Liability for Retirement Health Insurance Account (RHIA) as
required by Government Accounting Standards Board (GASB) 75 and to correct booking of line‐of‐Credit in 2017
ᶬ Restatement required to recognize Other Post Employment Benefit (OPEB) Liability for Health Insurance Continuation as required by
Government Accounting Standards Board (GASB) 75
Statement of Activities
FY 2018 FY 2017FY 2021 FY 2020
10 City of Roseburg FY 2021 Popular Annual Financial Report
Budget
The Citizen’s Budget Committee approved the FY 2021 budget which was then
adopted by the City Council on June 8, 2020. To best illustrate trends, the fiscal year
budget amounts are presented below for the last five fiscal years.
FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
City Budget:
Personnel Services 21,774,662$ 20,952,006$ 19,668,955$ 19,471,629$ 18,080,163$
Materials & Services 11,337,982 10,944,347 12,538,780 9,305,465 9,135,938
Debt Service 600,021 592,336 1,291,216 1,603,568 2,603,381
Transfers 1,734,076 1,276,644 1,375,514 1,246,528 1,192,455
Other 95,318 21,000 ‐ 5,000 50,000
Annual Operating Budget 35,542,059 33,786,333 34,874,465 31,632,190 31,061,937
Capital Outlay 5,616,768 6,991,780 7,183,995 7,593,603 5,253,935
Reserves 37,943,904 32,555,227 29,301,437 24,757,019 24,276,868
Total City Budget 79,102,731$ 73,333,340$ 71,359,897$ 63,982,812$ 60,592,740$
Budget Information
www.cityofroseburg.org/departments/finance/annual‐reports 11
Financial Policies
The City of Roseburg is committed to responsible fiscal management through financial
integrity, prudent stewardship of public assets, planning, accountability and full
disclosure. The broad purpose of Fiscal Policies is to enable the City to achieve and
maintain a long-term stable and positive financial condition. These policies are
adopted by the City Council as the basic framework for overall financial management
of the City, to guide day-to-day and long-range fiscal planning and decision making,
and to achieve the following general financial goals:
1. To provide for quality basic City services.
2. To establish a financial base sufficient to maintain or enhance City assets required
to support community service demand.
3. To respond to changes in the needs, desires and service requirements of
Roseburg.
4. To follow prudent and professional financial management practices to assure
residents of Roseburg and the financial community that our City government is
well managed and in sound fiscal condition.
5. To cooperate with other government entities to provide cost effective services to
citizens.
6. To have an adequate capital improvement program that maintains and enhances
the public’s assets.
To achieve these goals, fiscal policies generally cover areas of revenue management,
operating and capital budgeting, financial planning and forecasting, investment and
asset management, debt management, accounting and financial reporting, reserves,
and internal controls. These policies are reviewed by management and City Council
and amended as necessary.
To review all financial policies for the City of Roseburg, please see page 6 of the
Roseburg Adopted Budget for 2021-2022, available online at
www.cityofroseburg.org/departments/finance/city-budgets.
12 City of Roseburg FY 2021 Popular Annual Financial Report
Revenue Overview
The City maintains 22 distinct funds in which
to account for government services. The
financial statements of the City are divided
into two categories – governmental activities
and business-type activities. Governmental
activities include the basic services provided
by the city including public safety, parks and
recreation, library, public works, community
development, and general administration.
Property taxes, public service taxes,
franchise fees, charges for services, and
state and federal grants fund most of these
activities.
Business-type activities include water, storm
drainage, off street parking, and airport
services. The City charges fees to customers
to help cover the costs of these services.
Along with the adoption of the budget, rate
increases for water, storm drainage and
airport services are approved by the City
Council following the support and
recommendation of the Public Works
Commission.
Major Revenue Types
Property Taxes – The City of Roseburg’s
permanent tax rate is $8.48 per $1,000 of
taxable assessed value.
Intergovernmental – Grants or shared
revenues received from other governments
(state, federal, etc.).
Fees & Charges – Fees received for
services, including water, storm drainage,
rental properties, etc.
Licenses, Permits, & Fines – Revenue
generated from selling licenses and permits
and collecting on fines.
Franchise Fees – The revenue received as
per agreements with public and private
utilities for use of the City right-of-ways.
Other – Revenues that do not fall into the
above categories.
Douglas County assesses property taxes on
behalf of the county, schools, special
districts, and the City of Roseburg on a
consolidated property tax bill. Of this tax bill,
55.57 percent of the total is allocated to the
City of Roseburg. Of every dollar, $0.56 goes
to the City:
General purpose property taxes and taxes
levied for debt service increased $886,000
due to strong appreciation in the housing
market. Capital grants and contributions
increased $1.095 million from the prior year.
$0.56
City of
Roseburg
$0.07
Douglas
County
$0.37
Roseburg
School
District
<$0.004
4H
Extension
Service
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More About Revenues
14 City of Roseburg FY 2021 Popular Annual Financial Report
Expenses Overview
The City of Roseburg plans for expenses
using several short and long-range planning
tools. A six-year financial forecast for the
general fund guides short-term
governmental spending. A five-year financial
forecast for the water utility guides short-
term water utility spending. The multi-year
forecasting models anticipate projected
increases and decreases in revenues and
expenses.
The City of Roseburg also relies on master
planning documents including the
Transportation System Plan, Water Master
Plan, Storm Drainage Master Plan, Park
Master Plan, Regional Airport Financial and
Development Plan, and others. These
master plan documents provide long-range
planning for necessary capital improvements
and investments in the City’s infrastructure.
The City’s expenses related to services
provided are tracked by distinct funds, and
can also be displayed by type of service
provided. There are seven main service
categories in which expenses can be
attributed:
General Government – Expenses include
those incurred by the City Council, City
Manager’s Office, Finance, Human
Resources, and Information Technology.
Public Safety – Includes expenses from the
Police, Fire and Municipal Court
Departments.
Public Works – Expenses related to the
provisions of Engineering, Streets and
Lighting, and Facilities.
Culture & Recreation – Expenses include
those incurred by the Parks & Recreation and
Library departments.
Community Development – Expenses
related to land use planning, permit services,
economic development, code enforcement,
and redevelopment projects.
Debt Service – Interest Expenses related to
debt retirement.
Business-Type Activities – Expenses
related to the operations of the City’s
business enterprises including: Storm
Drainage, Airport, Off Street Parking, and
Water.
Total expenses decreased $0.77 million
in 2020 primarily due to the completion
of a grant funded Head Start facility that
was a Community Development project
in 2019.
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More About Expenses
16 City of Roseburg FY 2021 Popular Annual Financial Report
Financial Planning
Financial Forecasting
The City of Roseburg prepared a six-year General Fund Financial Forecast prior to the
development of the FY 2022 budget. The six-year model takes into account projected
increases and decreases in revenues and expenditures. This information is shared
during budget deliberations. Financial forecasts are key to strategizing, studying
different financial outcomes, and modeling anticipated changes in revenue and
expenditure streams.
www.cityofroseburg.org/departments/finance/annual‐reports 17
More About Financial Planning
18 City of Roseburg FY 2021 Popular Annual Financial Report
Local Economy (as of June 2021)
At the close of the fiscal year ending June 30, 2021, the impacts of COVID-19 on the
City’s finances and the local economy became clearer. Despite creating a significant
headwind to the local economy, the City has maintained a very healthy financial
position. The following economic factors and information was considered as the
2021-2022 budget was being adopted.
The State of Oregon Employment Department reported that the “Douglas County’s
seasonally adjusted unemployment rate was essentially unchanged at 6.4% in June
compared with a revised 6.5% in May. The rate is down from 9.2% in June 2020.
The Oregon seasonally adjusted June rate was 5.6% and the U.S. rate was 5.9% in
June.” Furthermore, “Douglas County has gained back 52% of the jobs lost in March
and April 2020 at the onset of the COVID-19 crisis.”
A review of the underlying figures to June’s unemployment rate dropping year-over-
year is due to a mixed bag of results:
www.cityofroseburg.org/departments/finance/annual‐reports 19
The civilian labor
force decreased by -
279 year-over-year
or -0.6%, and it
increased 169 from
May;
The number of
employed (or jobs)
increased by 1,361
year-over-year or
3%, and it increased
by 62 from May; and
The number of
unemployed
decreased by -1,640
year-over-year or -36.2%, however, it increased 107 from May.
The most significant source of revenue for the City is taxes, including property,
marijuana, state shared revenues, franchise and motel taxes. For the year ended
June 30, 2021, taxes of $21,455 made up 68 percent of governmental funds revenue.
Property taxes are projected to increase around 3% based on strong
appreciation that occurred in the housing market in 2020.
Marijuana taxes have seen a sharp increase during the COVID-19 pandemic
with a 64 percent increase in growth year-over-year from fiscal year 2020 to
fiscal year 2021. It is projected that revenues will remain at an elevated level
for the foreseeable future.
Impact of the recession on state shared revenues has been mixed; liquor and
state shared revenues have both seen increases year-over-year, however,
cigarette revenues have declined.
Hotel/motel transient lodging taxes have not followed the national trend as our
hotels have seen a marked increase in occupancy which has translated into a
12 percent increase over pre-pandemic levels.
Employer
Estimated No.
Employees Rank
Percentage
of Total
Employment Employer
Estimated No.
Employees Rank
Percentage
of Total
Employment
Roseburg Forest Products 1,599 1 4.23%Roseburg Public Schools 598 6 1.58%
VA Medical Center 1,275 2 3.37% Douglas County 475 7 1.26%
CHI - Mercy Healthcare, Inc. 1,272 3 3.37%Oregon Dept. of Transportation 460 8 1.22%
Seven Feathers Hotel &
Gaming Center 700 4 1.85% Orenco 384 9 1.02%
Swanson Group 632 5 1.67% First Call Resolution 345 10 0.91%
Totals: 7,740 20.48%
Principal Employers in 2021
20 City of Roseburg FY 2021 Popular Annual Financial Report
CITY OF ROSEBURG FINANCE DEPARTMENT
RON HARKER, MPA
FINANCE DIRECTOR
finance@cityofroseburg.org
CITY OF ROSEBURG, OREGON
POPULAR ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
900 SE DOUGLAS AVE., ROSEBURG, OR, 97470 | PHONE (541) 492-6710 | www.cityofroseburg.org