CPRD Budgeting & Investing Primer

An introduction to the agency's financial structure and investment strategies

Chehalem Park and Recreation District receives revenue by various means. Yamhill County collects taxes for operation of our District and deposits this revenue into our Local Government Investment Pool (LGIP) at the Oregon State Treasury.

WHAT IS THE LGIP?

The Oregon State Treasury helps governments across the state, including schools and cities and counties, to stretch taxpayer dollars and keep public funds safe.

Between the time that revenue is received and when the money is needed to pay expenses, governments can deposit money and earn a rate of return by accessing the Treasury-managed Oregon Short Term Fund (OSTF) through the Local Government Investment Pool (LGIP or pool). The OSTF is made up of money from state agencies, certain public universities, and local governments.

Any municipality, political subdivision or public corporation of this state that by law is made the custodian of, or has control of, any public funds, may participate in the pool. Sovereign Tribes are also eligible to participate.

Treasury has hired PFM Asset Management LLC to provide administrative and operational support for the pool.

excerpt from Oregon State Treasury website at oregon.gov

The LGIP is not a separate account from the money that CPRD receives, budgets and that is shown in audits. Rather, it IS an extension of the primary bank account. If you place part of your income in a 401K, stock equities or a financial services firm to grow it for retirement or major purchases, you are doing something similar.

The reason that CPRD chooses to deposit money into our LGIP account is that local banks can only insure our funds up to $250,000. Therefore, in order to keep the public's money protected, CPRD responsibly invests anything over this amount into the state-run investment pool that has been created just for government entities like CPRD.

We receive SDC fee-driven revenue from Cities of Dundee and Newberg as well as County of Yamhill. This money is deposited into our local bank account at US Bank in Newberg. If this bank account balance comes close to or exceeds $250,000.00, money beyond that amount is transferred into our LGIP account that is specifically designated for SDC deposits.

CPRD has three accounts with the LGIP: 

Tax account for current and prior taxes 
Bond account for current and prior taxes generated by the 2014 Pool Bond.
SDC account for fees collected from builders (System Development Charges).

When CPRD collects money from any fees or charges, we first deposit the funds into our local bank. CPRD only deposits into the LGIP accounts when the balance at the bank accounts goes too high for the bank to insure it. As a note on Accounts Payable, any checks that CPRD issues for purchases and to pay bills are issued from CPRD's local US Bank accounts and not the LGIP.

CPRD accounts at US Bank include:

General Fund* Account
SDC Fund* Account
Foundation Account 

*Please note that these accounts are not funds; they are called this in reference to the corresponding line item in the CPRD annual budget. In this way, money can be directly traced from these accounts to these sections in the budget for each fiscal year. Therefore, the account balances of these bank accounts increase and decrease regularly with use. These accounts do not reflect the beginning or ending balances as reported in audits.

The fiscal year operational budget includes the following funds:

General Fund
Reserve For Equipment & Major Maintenance Fund
System Development Fund
 Loan Service Fund
Bond Debt Service Fund
 Capital Project Fund

Four of these funds have beginning and ending balances. These are:

General Fund
System Development Fund
Loan Service Fund
Bond Debt Service Fund

The two funds that do not have beginning and ending balances are the Reserve For Equipment & Major Maintenance Fund, and the Capital Project Fund.

Three of these funds have restrictions on how their money may be spent. System Development Fund money may be spent only on expanded capital outlay. The Loan Service Money may be used only for development and debt service. The Bond Debt Service Fund may be used only for paying debt on the Bond as approved by voters.

Ending balance per last audit 2021 - 22
General Fund $5,876,118
System Development Fund $3,856,041
Debt Service Fund $34,001
Bond Debt Service Fund $360,058

Beginning balance projected for 2024-25 budget:
General Fund $5,699,386
System Development Fund $3.890,319
Debt Service Fund $35,000
Bond Debt Service Fund - Zero