HomeMy WebLinkAbout12-2021 MWMC Monthly Report 2021MWMC Communication Packet
January 18, 2022
Introduction for City of Eugene Regional Sewer Fund
FY21 - Regional Sewer Utility Fund
Regional Wastewater Program Monthly Report— December 2021
The next meeting will be Friday, February 11, 2022 at 7:30 a.m.
MWMC Meeting will be held remotely via computer or phone
City of Eugene Regional Sewer Utility Fund
For the first time this year, we are including the City of Eugene
Regional Sewer Utility Fund audit and governance letter in your
communication packet.
The MWMC financial statements include the cost of Operations and
Capital, which are passed through from the City of Eugene on their
monthly invoices to MWMC. The MWMC auditors can see and test
the amounts billed by and paid to City of Eugene. What the Eugene
auditors do is test certain individual transactions which are then
summarized in these attached financial statements. The Eugene
auditors, Moss Adams, have issued a clean opinion on those
financials.
The governance letter would indicate if there were any significant
matters related to the financial statement audit that, in the auditors’
professional judgment, are relevant to your responsibilities in
overseeing the financial reporting process. No such matters were
mentioned in the governance letter.
REGIONAL SEWER UTILITY FUND
REGIONAL SEWER UTILITY FUND
An Enterprise Fund
of the City of Eugene, Oregon
Financial Statements
REGIONAL SEWER UTILITY FUND
An Enterprise Fund
of the City of Eugene, Oregon
Financial Statements
Fiscal Year Ended
June 30, 2021
REGIONAL SEWER UTILITY FUND
An Enterprise Fund
Of the City of Eugene, Oregon
Financial Statements
Fiscal Year Ended June 30, 2021
(With Report of Independent Auditors Thereon)
Report Prepared by the City of Eugene
Finance Division
(this page intentionally left blank)
Regional Sewer Utility Report
An Enterprise Fund
Of the City of Eugene, Oregon
Year Ended June 30, 2021
Table of Contents
Exhibit /
Schedule Page(s)
Report of Independent Auditors 1-2
Management’s Discussion and Analysis 3-5
Basic Financial Statements
Statement of Net Position 1 7
Statement of Revenues, Expenses, and Changes in Fund
. Net Position
2 8
Statement of Cash Flows 3 9
Notes to Basic Financial Statements 11-15
(this page intentionally left blank)
Report of Independent Auditors
To the Honorable Mayor and Councilors of the
City of Eugene, and the Commissioners of the
Metropolitan Wastewater Management Commission
Eugene, Oregon
Report on the Financial Statements
We have audited the accompanying financial statements of Regional Sewer Utility Fund, a sub-fund
of the City of Eugene’s Wastewater Utility Enterprise Fund, which comprise the statement of net
position as of June 30, 2021 and the related statements of revenues, expenses, and changes in fund
net position and cash flows for the year then ended, and the related notes to the basic financial
statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
1
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Regional Sewer Utility Fund as of June 30, 2021, and the changes in financial
position and cash flows for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of a Matter
As discussed in Note 1, the financial statements present only the Regional Sewer Utility Fund and do
not purport to, and do not, present fairly the financial position of the City of Eugene, Oregon, as of
June 30, 2021, the changes in its financial position or its cash flows for the year then ended in
accordance with accounting principles generally accepted in the United States of America. Our
opinion is not modified with respect to this matter.
Other Matter
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management discussion and analysis on pages 3-5 be presented to supplement the basic financial
statements. Such information, although not 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 in
accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We
do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Medford, Oregon
December 22, 2021
2
Management’s Discussion and Analysis
The management of the Regional Sewer Utility Fund (Fund), a sub-fund of the City of Eugene’s (Eugene) Wastewater
Utility Enterprise Fund, presents this narrative overview and analysis to facilitate both a short and a long-term analysis
of the financial activities of the fund for the fiscal year ended June 30, 2021. This Management’s Discussion and
Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the date of the
independent auditor’s report.
Financial Highlights
The Fund’s total assets and deferred outflows at June 30, 2021 increased $1.6 million from $5.3 million to $6.9
million. The increase was largely due to a $0.6 million increase in due from the Metropolitan Wastewater
Management Commission (MWMC) and a $0.9 million increase in deferred outflows related to pensions.
The Fund’s total liabilities and deferred inflows at June 30, 2021 increased $2.7 million from $16.0 million to
$18.7 million. The increase was largely due to a $0.5 million increase in due to MWMC and a $2.2 million
increase in the net pension liability.
The net position of the Fund (assets and deferred outflows of resources less liabilities and deferred inflows of
resources) at June 30, 2021, decreased $1.2 million from ($10.6) million to ($11.8) million.
The Fund’s operating revenues increased $1.6 million from $14.5 million to $16.1 million due to an increase in
MWMC operating charges.
The Fund’s operating expenses increased $1.5 million from $15.7 million to $17.2 million. This was primarily
driven by an increase in materials and supplies due to equipment replacement and rehabilitation projects.
Overview of the Financial Statements
The following discussion and analysis is intended to serve as an introduction to the Fund’s basic financial statements.
The Fund’s basic financial statements are comprised of two components:
1. Fund financial statements
2. Notes to the basic financial statements
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The Fund uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. The Fund is reported as an Enterprise fund.
Enterprise funds. Enterprise funds are used to account for ongoing operations and activities which are similar to those
found in the private sector. The measurement focus is upon the determination of change in net position.
The basic fund financial statements can be found on pages 7-9 of this report.
Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding
of the data provided in the fund financial statements. They are an integral part of the financial statements and should
be read in conjunction with them.
3
Fund Financial Analysis
2021 2020
Current assets $ 2,785,295 $ 2,133,454
Deferred outflows 4,126,054 3,186,330
Total assets and deferred outflows 6,911,349 5,319,784
Current liabilities 3,590,637 2,933,214
Noncurrent liabilities 14,497,353 12,463,214
Deferred inflows 652,321 567,358
Total liabilities and deferred inflows 18,740,311 15,963,786
Net position:
Unrestricted (11,828,962) (10,644,002)
Total net position $ (11,828,962) $ (10,644,002)
Regional Sewer Utility Fund's Net Position
2021 2020
Operating revenues:
Licenses and permits $ 16,158 $ 32,229
Fees, fines, and charges for service 16,076,163 14,411,562
Miscellaneous 23,139 75,852
Total operating revenues 16,115,460 14,519,643
Operating expenses:
Personnel services 7,399,612 7,764,539
Administration 1,045,596 1,017,927
Materials and supplies 3,138,468 1,966,457
Maintenance and utilities 1,903,093 1,609,752
Pension expense 2,552,082 2,353,978
Other expenses 1,230,625 1,033,499
Total operating expenses 17,269,476 15,746,152
Operating income (loss) (1,154,016) (1,226,509)
Nonoperating revenues (expenses):
Interest expense (129,543) (122,628)
Intergovernmental 98,599 37,641
Total nonoperating revenues (expenses) (30,944) (84,987)
Change in net position (1,184,960) (1,311,496)
Net position, July 1 (10,644,002) (9,332,506)
Net position, June 30 $ (11,828,962) $ (10,644,002)
Regional Sewer Utility Fund's Change in Net Position
4
Next Year’s Budgets and Rates
For FY22, the following factors were taken into account when developing the regional sewer budget:
Salaries for non-represented employees and employees covered under collective bargaining agreements were
expected to increase 2.2%.
Health benefit rates were increased by 6.7%.
Retirement costs are expected to range from 20.83% to 27.63% of payroll, depending on which pension plan
the employee participates in.
Requests for Information
These financial statements are designed to provide a general overview of the Fund’s finances for all those with an
interest in the Fund. Questions concerning any of the information provided in this report, or requests for additional
financial information, should be addressed to:
Fionan Cronin, CPA
Assistant Finance Director
City of Eugene
100 West 10th Avenue, Suite 400
Eugene, Oregon 97401
5
(this page intentionally left blank
6
REGIONAL SEWER UTILITY FUND Exhibit 1
An Enterprise Fund of the City of Eugene, Oregon
Statement of Net Position
June 30, 2021
(amounts in dollars)
Assets
Current assets
Equity in pooled cash and investments 41,395
Accounts receivable 225,497
Due from MWMC 2,518,403
Total current assets 2,785,295
Deferred outflows of resources
Related to OPEB 199,709
Related to pensions 3,926,345
Total deferred outflows of resources 4,126,054
Total assets and deferred outflows of resources 6,911,349
Liabilities
Current liabilities
Accounts payable 411,374
Wages payable 513,166
Compensated absences 577,397
Due to MWMC 1,160,768
Deposits 700,000
Interest payable 11,464
Bonds payable 216,468
Total current liabilities 3,590,637
Noncurrent liabilities
Compensated absences payable 77,151
Bonds payable (net of unamortized discount)1,486,327
Net pension liability 12,104,383
Net OPEB liability 829,492
Total noncurrent liabilities 14,497,353
Deferred inflows of resources
Related to pensions 539,377
Related to OPEB 112,944
Total deferred inflows of resources 652,321
Total liabilities and deferred inflows of resources 18,740,311
Net position
Unrestricted (11,828,962)
Total net position (11,828,962)
The accompanying notes are an integral part of the financial statements.
7
continued
REGIONAL SEWER UTILITY FUND Exhibit 2
An Enterprise Fund of the City of Eugene, Oregon
Statement of Revenues, Expenses,
and Changes in Fund Net Position
For the fiscal year ended June 30, 2021
(amounts in dollars)
Operating revenues
Licenses and permits 16,158
Charges for services 16,071,313
Fines and forfeits 4,850
Miscellaneous 23,139
Total operating revenues 16,115,460
Operating expenses
Personnel services 7,399,612
Contractual services 1,105,582
Materials and supplies 3,138,468
Maintenance 959,812
Utilities 943,281
Rent 4,811
Insurance 120,232
Administration 1,045,596
Pension expense 2,552,082
Total operating expenses 17,269,476
Operating income (loss)(1,154,016)
Nonoperating revenue (expense)
Interest expense (129,543)
Intergovernmental 98,599
Total nonoperating revenue (expense)(30,944)
Change in net position (1,184,960)
Total net position, July 1, 2020 (10,644,002)
Total net position, June 30, 2021 (11,828,962)
The accompanying notes are an integral part of the financial statements.
8
continued
REGIONAL SEWER UTILITY FUND Exhibit 3
An Enterprise Fund of the City of Eugene, Oregon
Statement of Cash Flows
For the fiscal year ended June 30, 2021
(amounts in dollars)
Cash flows from operating activities
Cash received from customers 24,797,974
Cash received from MWMC for operating reimbursements 16,071,180
Cash paid to MWMC for sewer user and septic hauler fees collected (25,364,140)
Cash paid to suppliers for goods and services (4,826,240)
Cash paid to employees for services (6,985,553)
Cash paid for interfund services used (2,386,937)
Cash paid for central business functions (1,045,596)
Net cash provided by (used for) operating activities 260,688
Cash flows from noncapital financing activities
Principal payments on pension bonds (188,349)
Interest payments on pension bonds (129,543)
Subsidy from grant 98,599
Net cash provided by (used for) noncapital financing activities (219,293)
Net increase (decrease) in cash 41,395
Cash, July 1, 2020 0
Cash, June 30, 2021 41,395
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities
Operating income (loss)(1,154,016)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
(Increase) Decrease in accounts receivable 11,331
(Increase) Decrease in due from other governments (621,777)
(Increase) Decrease in deferred outflows related to OPEB (63,670)
(Increase) Decrease in deferred outflows related to pensions (876,054)
Increase (Decrease) in net pension liability 2,181,036
Increase (Decrease) in due to other governments 520,436
Increase (Decrease) in accounts payable 348,977
Increase (Decrease) in deferred inflows related to pensions (4,419)
Increase (Decrease) in deferred inflows related to OPEB 89,382
Increase (Decrease) in net OPEB liability 53,839
Increase (Decrease) in due to other funds (271,757)
Increase (Decrease) in wages payable 52,570
Increase (Decrease) in compensated absences payable (5,190)
Net cash provided by (used for) operating activities 260,688
The accompanying notes are an integral part of the financial statements.
9
(this page intentionally left blank)
10
Regional Sewer Utility Fund
An Enterprise Fund
Of the City of Eugene, Oregon
Notes to Basic Financial Statements
continued
June 30, 2021
(1) Summary of Significant Accounting Policies
The financial statements of the Regional Sewer Utility Fund (Fund), a sub-fund of the City of Eugene’s (City)
Wastewater Utility Enterprise Fund, have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB)
is the accepted standard-setting body for establishing governmental accounting and financial reporting
standards.
The more significant of the Fund's accounting policies are described below.
(A) The Financial Reporting Entity
Regional wastewater facilities were constructed through the Metropolitan Wastewater Management
Commission (MWMC), established on February 9, 1977 by an intergovernmental agreement between Lane
County and the Cities of Eugene and Springfield. On November 10, 1983, MWMC entered into a contract with
Eugene for the physical operation of the regional wastewater treatment facilities.
The Fund operates and maintains the regional wastewater treatment facility, sludge disposal system, and the
seasonal industrial wastewater disposal site serving the metropolitan area.
(B) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Measurement focus refers to what is being measured by the Fund. Basis of accounting refers to when
revenues and expenses are recognized in the accounts and reported in the financial statements.
The Fund is accounted for using an economic resources measurement focus, whereby all assets and deferred
outflows of resources and liabilities and deferred inflows of resources are included in the Statement of Net
Position, and the Statement of Revenues, Expenses, and Changes in Fund Net Position present increases and
decreases in net position. The Fund also uses the accrual basis of accounting whereby revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows.
The Funds’ proprietary fund accounting and financial reporting practices are based on all applicable GASB
pronouncements.
Operating revenues and operating expenses are intermediate components within the Fund’s Statement of
Revenues, Expenses, and Changes in Fund Net Position that include only those transactions that constitute
their principal, ongoing activities exclusive of investing or financing transactions. Significant operating
revenues include charges for services. Significant operating expenses include personnel, materials and
supplies, and pension expense. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
(C) Equity in Pooled Cash and Investments
The Fund invests cash through Eugene in various investments.
Policies adopted by the Investment Advisory Board and the Eugene City Council authorize Eugene to invest in
obligations of the U.S. Treasury and its agencies, time certificates of deposit, governmental money market
bank deposit accounts, bankers’ acceptances, municipal bonds, corporate bonds, commercial paper,
repurchase agreements, reverse repurchase agreements, and the Oregon Local Government Investment Pool.
11
Regional Sewer Utility Fund
An Enterprise Fund
Of the City of Eugene, Oregon
Notes to Basic Financial Statements
continued
(1) Summary of Significant Accounting Policies, continued
(C) Equity in Pooled Cash and Investments, continued
It is Eugene’s policy to report at amortized cost all short-term, highly-liquid money market investments
(including corporate bonds, commercial paper, bankers’ acceptances, municipal bonds, and U.S. Treasury and
agency obligations) and participating interest-earning investment contracts with a remaining maturity at time of
purchase of one year or less. Such investments are stated at cost, increased by accretion of discounts and
reduced by amortization of premiums, both computed by the straight-line method. Callable investments
purchased at a discount are amortized to the maturity date, and callable investments purchased at a premium
are amortized to the first call date. Investments with a remaining maturity, at time of purchase, of more than
one year are valued at fair value.
Eugene maintains a common cash and investments pool for all City funds. Interest earned on the pooled cash
and investments is allocated quarterly based on each fund’s average cash and investments balance as a
proportion of Eugene’s total pooled cash and investments. For purposes of the Statement of Cash Flows,
Eugene considers “cash” to include the pooled cash and investments, since the pool has the general
characteristics of a demand deposit account, in that any participating fund may deposit additional cash at any
time and also may withdraw cash at any time without prior notice or penalty.
(D) Compensated Absences
Liabilities for accumulated or vested vacation leave and compensation time benefits (compensated absences)
are recorded in the Statement of Net Position. Sick leave does not vest and is recorded as taken.
(E) Administration Expense
Administration expense represents reimbursement to Eugene’s General Fund for general services provided to
all City funds including the Fund. The charge for general service costs is based on an approved overhead rate
applied to direct costs.
(F) Accounts Receivable
Accounts receivable are accrued as revenue when earned. Management believes all accounts receivable are
collectible, accordingly, no allowance for uncollectible receivables is considered necessary.
(G) Pensions
For purposes of measuring the net pension asset (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 System (OPERS) and additions to/deductions from OPERS's fiduciary
net position have been determined on the same basis as they are reported by OPERS. 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 market value.
12
Regional Sewer Utility Fund
An Enterprise Fund
Of the City of Eugene, Oregon
Notes to Basic Financial Statements
continued
(1) Summary of Significant Accounting Policies, continued
(H)Other Post-Employment Benefits (OPEB)
The Fund is a participant in the City of Eugene’s two separate OPEB plans. For reporting purposes the net
OPEB asset (liability) and the deferred inflows and outflows related to OPEB for both plans have been
combined on the statement of net position.
OPEB – Retiree Health and Life Insurance Plan (RHLI)
The fiduciary net position of Eugene’s Healthcare Plan has been determined using the flow of
economic resources measurement focus and full accrual basis of accounting. This includes for
purposes of measuring the net OPEB asset (liability), deferred outflows of resources and deferred
inflows of resources related to other postemployment benefits, OPEB expense, and information about
assets, liabilities and additions to/deductions from Eugene’s Health Plan fiduciary net position. Benefit
payments are recognized when due and payable in accordance with the benefit terms. There are no
investments as this is a pay-as you-go plan and all cash is held in a cash account.
OPEB – Retiree Health and Life Insurance Plan (RHIA)
For purposes of measuring the net OPEB asset (liability), deferred outflows of resources and deferred
inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position
of the Oregon Public Employees Retirement System (OPERS), and additions to/deductions from
OPERS's fiduciary net position have been determined on the same basis as they are reported by
OPERS. 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
market value.
(2) Stewardship, Compliance, and Accountability
(A) Deficit Net Position
Although the Fund’s annual operating expenses are paid by MWMC, for the year ended June 30, 2021, the
Fund had a deficit net position of $11,828,962. The Fund’s deficit net position is the result of the recognition of
long-term liabilities associated with its future pension and OPEB obligations.
(3)Detailed Notes on the Fund
(A) Due from MWMC
Amounts due from MWMC at June 30, 2021 of $2,518,403 are for services provided in the operation and
maintenance of the regional sewer facility. The Fund does not require collateral on these receivables.
(B)Due to MWMC
All amounts due to MWMC at June 30, 2021, are for septic hauler and user fees.
13
Regional Sewer Utility Fund
An Enterprise Fund
Of the City of Eugene, Oregon
Notes to Basic Financial Statements
continued
(3) Detailed Notes on the Fund, continued
(C) Contract with Metropolitan Wastewater Management Commission
The contract between Eugene and MWMC requires Eugene to perform the operational and maintenance
functions relating to the regional sewage treatment facilities. Under the terms of the contract, Eugene must
submit an annual budget to MWMC projecting the costs of performing the operational and maintenance
functions, including the cost of supervision and overhead. The MWMC adopted budget, as it relates to the
contract with Eugene, specifies personnel services, materials and services, capital outlay, and indirect cost
expenditure appropriations for the following functions: Administrative and Management Services, Regional
Wastewater Treatment Facility Operations, Regional Wastewater Treatment Facility Maintenance, Biosolids
Management, Industrial Source Control (Pretreatment), Regional Environmental Analytical Services, Computer
Services, and Projects Group.
Eugene submits monthly billings to MWMC for actual expenses plus indirect charges at the approved overhead
rate. MWMC has the right to appeal or seek clarification of any billing within ten days of its receipt. Annually,
Eugene is to provide MWMC with an accounting, consistent with generally accepted accounting principles
(GAAP), of actual revenues and expenses incurred in performance of the operational and maintenance
functions. Negotiations between Eugene and MWMC will be the primary means of settling disputes that may
arise; arbitration proceedings are available to either party in the case of unsettled disputes or other matters.
In order to meet the working capital requirements of the Fund, MWMC has deposited $700,000 with Eugene as
of June 30, 2021. The deposit amount may vary in the future depending on changes in the working capital
requirements of the Fund and is subject to repayment on demand.
Billable contract expenditures incurred by Eugene for the year ended June 30, 2021 are reconciled as follows
to the operating expenses presented in the accompanying financial statements:
MWMC MWMC
budget actual
Personnel services $ 9,970,160 8,837,380
Material and services 4,289,040 4,414,784
Capital outlay and equipment replacement 122,000 1,857,401
Indirect costs 998,000 1,045,596
Billable contract expenditures $ 15,379,200 16,155,161
Adjust expenses for GAAP reporting:
Increase in accrued vacation not paid (5,189)
Increase in contribution to PERS Employer Incentive Fund 57,282
Increase in OPEB expenses and related deferred inflows and outflows 80,592
Increase in pension expense and related deferred inflows and outflows 981,630
Total operating expenses 17,269,476
14
Regional Sewer Utility Fund
An Enterprise Fund
Of the City of Eugene, Oregon
Notes to Basic Financial Statements
continued
(3)Detailed Notes on the Fund, continued
(D)Changes in Noncurrent Liabilities
Noncurrent liability activity for the year ended June 30, 2021 was as follows:
Beginning Ending Due within Due after
balance Additions Reductions balance one year one year
Compensated absences payable $659,738 0 (5,190) 654,548 577,397 77,151
Bonds payable (net of
unamortized discount) 1,891,144 0 (188,349) 1,702,795 216,468 1,486,327
Net Pension liability 9,923,347 2,181,036 0 12,104,383 0 12,104,383
Net OPEB liability 775,653 53,839 0 829,492 0 829,492
Total noncurrent liabilities $ 13,249,882 2,234,875 (193,539) 15,291,218 793,865 14,497,353
Information about the City’s noncurrent liabilities is available in the City of Eugene’s FY21 Annual
Comprehensive Financial Report (Notes to the Basic Financial Statements) at http://www.eugene-
or.gov/financialreports.
(E) Risk Management
The City has established an internal service fund to account for and finance its risks of loss. The City has a
self-insured liability program which covers personal injury, public official’s errors and omissions, law
enforcement liability, automobile liability, employee benefits liability, and employment practices liability, with a
maximum self-insured retention of $500,000 per occurrence for automobile liability, general liability, and
$1,000,000 per occurrence for employee benefit and employment practice liability. In addition, the City has a
self-insured workers’ compensation program which covers employees’ work-related illnesses and injuries,
including employer’s liability, with a maximum self-insured retention of $1,000,000 per occurrence. During the
previous three fiscal years, there were no liability claims that exceeded the insurance coverage levels.
All regular full and part-time City employees are eligible for medical, dental, and vision insurance coverage.
Employees may choose between two self-insured plans: the City Health Plan, a Preferred Provider
Organization (PPO) plan or the City Managed Care Plan, a Point of Service (POS) plan. A third self-insured
medical plan, the City Hybrid Plan, is available to non-represented, AFSCME and IATSE-represented
employees. The City has established a self-insurance fund to pay medical, dental, and vision claims of
employees and their dependents on the City Health Plan, up to the self-insurance retention limit of $275,000
per employee.
Coverage for workers’ compensation, general liability, and employees’ health claims in excess of the self-
insurance retention limit is purchased from commercial insurers. The City also purchases all-risk property
insurance coverage from a commercial insurer. The property insurance policy has a basic $25,000 deductible,
with earthquake and flood insurance coverages subject to the following deductibles: flood – $100,000
deductible per occurrence except that buildings in Flood Zones A and V have a $500,000 deductible per
building; earthquake – 2% of the combined value of the property at the location, subject to a minimum
deductible of $100,000 per location and the deductible applies separately to each location.
(F)Other Post Employment Benefits and Retirement Plans
Information about the City’s Other Post Employment Benefits and Oregon PERS Retirement Plans is available
in the City of Eugene’s FY21 Annual Comprehensive Financial Report (Notes to the Basic Financial
Statements) at http://www.eugene-or.gov/financialreports.
15
........................................................................................................................................ 2
.................................................................................................................................... 3
........................................................................................................................ 7
.......................................................................................................................................... 8
........................................................................................................... 8
................................................................................................................... 9
.................................................................................................................................. 10
............................................................................................................................................ 11
........................................................................................................ 13
.................................................................................................... 14
............................................................................................................................................... 15
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
o
o
o
o
•
• .
•
.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•