Lake Oswego, Oregon

LAKE OSWEGO - The City received its annual independent auditor’s report in early
November, giving it a clean bill of health for its financial reporting. Talbot, Korvola and
Warwick, LLP (TKW), the City’s independent auditors, provided the report for the City’s
financial statements, including those of the Lake Oswego Redevelopment Agency (LORA), for
the fiscal year ended June 30, 2007.

TKW’s report stated “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 information of the City…”
“We are pleased with the report because it means that our financials are accurate, that we use
acceptable accounting principles and that the City is complying with the law, which is what our
citizens expect,” said Mayor Judie Hammerstad.

The report also tested the City’s internal controls over financial reporting, found no
disagreements with management over the application of accounting principles, nor any
significant or unusual transactions.

For more information, please contact Richard Seals, Finance Director for the City of Lake
Oswego at 503-675-3746.