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1987-11033-Resolution No. 87-025 Recorded 6/5/198787-11033 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Adopting the Preliminary Official State- ment Relating to Deschutes County's Issuance of Certifi- * cates of Participation in the * Principal Amount of $240,000.00, Dated as of June * 1, 1987. KEYPUNCHED JUN 8 199 7 RESOLUTION NO. 87 -025 0083-01 o1 , I9 • WHEREAS, the Board of County Commissioners authorized the issuance of Certificates of Participation in the principal amount of Two Hundred and Forty Thousand Dollars ($240,000.00), dated as of June 1, 1987; and WHEREAS, a preliminary Official Statement was prepared for this issue by Shearson Lehman Brothers Inc., Foster and Marshall Division, the County's financial consultant; and WHEREAS, the preliminary Official Statement was available prior to the offer for sale of the Certificates of Participation; and WHEREAS, the Board of County Commissioners has reviewed the preliminary Official Statement, and finds that, to the knowledge and belief of the Board of County Commissioners, as of the date of the preliminary Official Statement, the preliminary Official Statement did not contain any untrue statement of material fact, omit to state a material fact in light of the circumstances under which the statements were made, contain any misleading state- ments, and that the preliminary Official Statement is representa- tive of the financial condition of the County and the Issue; now, therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. That the preliminary Official Statement, marked Exhibit "A ", attached hereto and by this reference incorporated herein, is adopted as the County's preliminary Official Statement relating to the Certificates of Participation, to be issued by Deschutes County, Oregon, dated as of June 1, 1987. 1 - RESOLUTION NO. 87 -025 DATED this � day of Q60--4-- , 1987. BOARD OF COUNTY COMMISSIONERS ATTEST: Recording Secretary 2 - RESOLUTION NO. 87 -025 0083-0150 OF ;SCHUT.S COU N OREGON C .411Mr. PRANTE, Chair TOM T:,�'OOP, Commissioner K MA DLI missioner 1 1 1 1 0082,-0151 PRELIMINARY OFFICIAL STATEMENT DATED: May 15, 1987 NEW ISSUE — NEGOTIATED RATING: No rating has been or will be applied for. In the opinion of Bond Counsel, under existing law, assuming compliance with the Issuer's covenants relating to the Tax Exemption, interest on the Certificates is exempt from all federal income taxes, except for: (i) alternative cn minimum taxes on the book income of corporations, and, (ii) taxes on corporate alternative minimum taxable H income imposed under the Superfund Amendments and Reauthorization Act of 1986, and is also exempt from o present state of Oregon personal income taxes. u ii 2 CERTIFICATES OF PARTICIPATION 00 Evidencing Proportionate Ownership Interests o in an Installment Purchase and Trust Agreement with 0 � DESCHUTES COUNTY, OREGON o a, v Dated: June 1, 1987 Due: June 1, 1988 -2002 4 TS o The Certificates will be issued in fully registered form without coupons in denominations of $5,000 each or any G integral multiple thereof. Interest due with respect to the Certificates will be payable semi - annually on June 1 and ca December 1, commencing December 1, 1987, by check or draft of the Trustee, currently The Oregon Bank, mailed to z o the registered Owner on the record date at the address shown on the registration books. Principal is payable o w commencing June 1, 1988 and annually thereafter through June 1, 2002, at the principal trust office of the Trustee in Portland, Oregon. The Certificates are subject to redemption prior to their stated maturities as described hereinafter. o, The Certificates represent undivided proportional ownership interests in the Installment Payments, as provided •. herein, and are additionally secured by the mortgage on the Project, the Security Agreement, the Reserve Account v Gand other accounts held by the Trustee hereunder, and any sums the Trustee may realize in connection with the O o exercise of default remedies. The obligation of the County to make Installment Payments under this Agreement is et o subject to annual appropriation. The Certificates are not secured by the unlimited taxing power of the County and v are not a general obligation of the County or the Trustee, but are secured solely as provided herein. To the extent E ccs that funds are appropriated to make Installment Payments hereunder, the faith and credit of the County are pledged `rs to the payment of the Installment Payments. c uE Principal Interest Principal Interest v Due June 1 Amount Rate Price Due June 1 Amount Rate Price O rs 1988 $10,000 % 1996 $15,000 % Z 8 1989 10,000 1997 20,000 E" w 1990 10,000 1998 20,000 v O 1991 10,000 1999 20,000 '" 1992 10,000 2000 20,000 c 1993 15,000 2001 25,000 cn . 1994 15,000 2002 25,000 .� 1995 15,000 P.'-' The Certificates are offered when, as and if delivered and received by the Underwriter, subject to an approving legal opinion of Lindsay, Hart, Neil & Weigler, Portland, Oregon, Bond Counsel, and certain other conditions. It is expected that the Certificates will be available for delivery in Portland, Oregon,on or about June , 1987. $240,000 an Shearson Lehman Brothers Inc. 1 Foster & Marshall Division I 0083 -0152 No dealer, broker, salesperson or other person has been authorized by Deschutes County to give any information or to make any representations, other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by the County. The statements of law made in this Official Statement under the captions "General Description," "Redemption Provisions," "Notice of Redemption," "Security for the Certificate," and "Summary of Provisions" have been reviewed by bond counsel. All other representations of law and fact have not been reviewed by bond counsel and have not, therefore, been approved by bond counsel. 0083-0153 PRELIMINARY OFFICIAL STATEMENT OF DESCHUTES COUNTY OREGON Relating to $240,000 Certificates of Participation, Series 1987 BOARD OF COUNTY COMMISSIONERS Lois Bristow Prante, Chair Dick Maudlin Tom Throop COUNTY OFFICIALS County Counsel: County Treasurer: County Assessor: District Attorney: County Clerk: County Sheriff: County Surveyor: Richard Isham Helen Rastovich Oscar Bratton Mike Dugan Mary Sue Penhollow Darrell Davidson David Hoerning PROFESSIONAL SERVICES Lindsay, Hart, Neil & Weigler, Bond Counsel The Oregon Bank, Registrar /Paying Agent and Trustee THE DATE OF THIS OFFICIAL STATEMENT IS MAY 15, 1987. TABLE OF CONTENTS MAP OF THE STATE OF OREGON 0083 -0154 Page INTRODUCTION 1 THE CERTIFICATES 1 General Description 1 Redemption Provisions 1 Notice of Redemption 2 Security for the Certificates 2 SUMMARY OF CERTAIN PROVISIONS OF THE INSTALLMENT PURCHASE AND TRUST AGREEMENT 3 Agreement to Purchase Project and Pay Purchase Price 3 Title 3 Default and Remedies 3 Assignment and Leasing 4 Modifications 4 Security for Certificates 5 Nonappropriation of Funds 5 Trust Accounts 5 Representations and Covenants of the County 5 Additional Obligations Secured by the Project 6 Insurance 6 The Trustee 7 Defeasance 7 THE PROJECT Project Financing SOURCES AND USES OF FUNDS 8 8 8 INSTALLMENT PAYMENTS 9 DEBT AND PROPERTY TAX INFORMATION Debt Summary Debt Limitations Debt Authorization Debt Management Future Debt Plans Table 1: Oustanding Obligations Table 2: Combined Debt Service Requirements Table 3: Overlapping Debt SYNOPSIS OF PROPERTY TAX ADMINISTRATION 10 10 10 10 10 10 11 12 13 14 Table 4: Tax Collection Record 16 Table 5: Consolidated Tax Rate 17 Table 6: Major Taxpayers 17 0083-0155 FINANCIAL INFORMATION 18 3asis of Accounting 18 Fiscal Year 18 Audits 18 Budgeting Process 18 Table 7: Summary of 1986 -87 Budget 19 Table 8: General Fund Statement of Revenue and Expenditures 20 Table 9: General Fund Consecutive Balance Sheets 21 Table 10: General Fund Current Statement of Revenues and Expenditures 22 DESCHUTES COUNTY 23 General Information 23 Government and Administration 23 Table 11: Board of Commissioners and Major Officials of the County 23 ECONOMIC AND DEMOGRAPHIC INFORMATION 24 Population 24 Employment 24 Municipal Services 24 Information 25 Economic and Demographic Tables 25 Table 12: Population Estimates 26 Table 13: Average Annual Unemployment as a Percent of Labor Force 26 Table 14: Employment - Annual Averages and Percent Distribution By Industry Group 27 Table 15: Major Employers 28 Table 16: Income Estimates 29 Table 17: Miscellaneous Economic Information 29 LITIGATION 30 AUDITS '30 UNDERWRITING 30 APPROVAL OF LEGAL PROCEEDINGS 30 TAX EXEMPTION 30 MISCELLANEOUS 30 CONCLUDING STATEMENT 31 APPENDIX A: JUNE 30, 1986 AUDITED FINANCIAL STATEMENT (partial) APPENDIX B: DRAFT LEGAL OPINION us .....--,.'y li 1 \ il ,L \ ___ N •-• . _,..,_ ----- .---• ------ ----- \ p _____. •----',,-'',,,, ___11----- -_---1-‘=---- --.._,., US us \ 2. \ 0 r 8 r --4,..i,:_ i --......1-1 ,_____,_L_.-- ---...t. . ,1•,1 .,4,..., , ta ''--v":-.::Q*-;',,,s22--- -- f f,„ -,----1 , " ' 3' , -, ' '1._ 4- -., 1 ,..,...',-7-'-'—'-':'1_,,-------- :77:.:71'13. -' 4, - ----. .-: Ti DI a-c,r.,------ - ..„, , ,, ,;-4,- . , ',,,,,; ----,,...-„.„ c.., 0 — - - us o 0 cL $240,000 CERTIFICATES OF PARTICIPATION, SERIES 1987 Evidencing Proportionate Ownership Interests in an Installment Purchase and Trust Agreement with 0083 DESCHUTES COUNTY, OREGON INTRODUCTION -0157 The purpose of this Official Statement, which includes the cover page, table of contents and appendices hereto, is to provide certain information with respect to the sale and delivery of Certificates of Participation (the "Certificates "), in the aggregate principal amount of $250,000, evidencing proportionate ownership interests in the Installment Payments due under Installment Purchase and Trust Agreement dated June 1, 1987 between Deschutes County, as lessee and The Oregon Bank, Trustee, as lessor. The County is authorized to enter into the Agreement by a County Resolution adopted , 1987. The County is entering into the Agreement to finance acquisition of a warehouse storage facility and to pay costs associated with the issuance of the Certificates. Payment of the Certificates will be secured solely by (i) the right to receive installment payments (the "Installment Payments ") from the County under the Agreement, (ii) money held in the accounts under the Agreement (including the reserve account) and (iii) the right of the Trustee to foreclose the Agreement against the Project. The obligation of the County to make installment payments is subject to annual renewal and the County's covenant to make Lease Payments is subject to and dependent upon annual appropriations. THE CERTIFICATES GENERAL DESCRIPTION The Certificates are being executed and delivered in the aggregate principal amount of $240,000 and mature on the dates set forth on the cover hereof. The interest represented thereby will be calculated from June 1, 1987 at the rates per annum set forth on the cover page hereof, payable semi - annually on June 1 and December 1 of each year commencing December 1, 1987. The Certificates will be prepared only in fully registered form without coupons in denominations of $5,000 or any integral multiple thereof. Interest is payable by check or draft mailed on the payment date to the Owners of the Certificates whose names appear on the registration books as of the fifteenth day of the month immediately preceding each interest payment date at the address shown on the registration books of the paying agent /registrar. Principal is payable on surrender of the Certificates at the principal trust offices of the paying agent /registrar in Portland, Oregon. Fully registered Certificates may be transferred at the corporate trust office of the paying agent /registrar. REDEMPTION PROVISIONS Certificates due on or after June 1, 1996 are subject to optional redemption, in whole or in part, as a result of the exercise by the County of its option to prepay all or a portion of the principal component of the Installment Payments on the following dates at the redemption prices set forth in the following table (expressed as a percentage of the principal amount of Certificates to be redeemed), together with accrued interest to the date fixed for redemption. Year June 1, 1995 and December 1, 1995 June 1, 1996 and thereafter Percentage 101.0% 100.0 The Certificates are subject to mandatory redemption, in whole or in part without premium, at any time prior to their stated maturities, upon the occurrence of an Event of Default under the Agreement, from proceeds of any amounts received by the Trustee in connection with default remedies, or from certain fire and casualty insurance. If less than all outstanding Certificates are called for redemption, the Trustee will redeem the Certifictes in inverse order of maturity and by lot within a maturity. NOTICE OF REDEMPTION 0083 -0158 Notice of optional redemption shall be given by certified mail, postage prepaid, to each Owner of Certificates, at least thirty (30) days prior to the date fixed for redemption. Failure to mail such notice to any Owner shall not impair the validity of the redemption proceedings with respect to those Owners who have received such notice. SECURITY FOR THE CERTIFICATES The Certificates are secured solely by: Installment Payments paid by the County to the Trustee pursuant to the Agreement; accounts held under the Installment Purchase and Trust Agreement (the "Agreement "); and, any amounts realized by the Trustee from the foreclosure of the Project. The obligation to pay amounts due under the Agreement does not constitute a general obligation of the County, or any political subdivision or municipal corporation of the State of Oregon and is not secured by the unlimited taxing power of the County. Each Certificate represents a proportionate interest in a particular principal payment due from the County under the Agreement, together with the interest due from the County on that principal payment. The obligation of the County to make payments under the Agreement is subject to annual renewal. If the County fails to appropriate funds to make payments under the Agreement, the Certificate Owners are entitled to be paid solely to the extent of previously appropriated but unpaid moneys, moneys held in the trust accounts under the Agreement, and moneys which become available from the foreclosure of the Project. The County is not liable to pay any deficiency in the event such sums are not adequate to pay the unpaid amounts due under the Agreement. The amounts due under the Agreement are payable from the general fund of the County. To the extent that moneys are appropriated for payments due under the Agreement, the Certificate Owners will have a status equivalent to that of a general unsecured creditor of the County. To the extent that moneys are appropriated in a fiscal year for amounts due in that fiscal year under the Agreement, the obligation of the County to pay such appropriated amounts is a full faith and credit obligation of the County. If the County fails to appropriate money to pay sums due under the Agreement, the ability of the Certificate Owners to collect unpaid amounts will depend on the foreclosure value of the Project, and the amounts held in the trust accounts under the Agreement. In the Agreement, the County establishes a Reserve Account equal to the maximum annual debt service on the Certificates. The Reserve Account may be used only to pay Installment Payments. If the Reserve Account is used to pay Installment Payments, it is an Event of Default unless the County has filed an MAI appraisal with the Trustee, indicating that the unpaid principal due under the Agreement is 75% or less of the appraised value of the Project. If the County has filed such an appraisal, the reserve may be used to pay Installment Payments without causing an Event of Default, if the Reserve Account is replenished by August 31 of the following fiscal year. The County has received an MAI appraisal of the Project dated January , 1987 stating that the Project has a value of $245,000. The appraisal is based on certain assumptions which may not be accurate in the future, and the value received by the Trustee on foreclosure of the Project may be significantly less. No representation is made by the County that the value of the Project will be sufficient at any time to pay the amounts due under the Agreement if the County fails to appropriate funds therefore, or otherwise defaults on the Agreement. The Agreement requires the County to maintain standard fire and casualty insurance on the Project in an amount at least equal to the unpaid principal due under the Agreement. However, not all risks are covered by such insurance, and the amount of insurance proceeds actually received may not fully compensate the County or the Owners for damage to, or loss of, the Project. Please see the sub - section titled "Insurance" in the summary of the Agreement. SUMMARY OF CERTAIN PROVISIONS OF THE 008 3-0159 59 INSTALLMENT PURCHASE AND TRUST AGREEMENT The following is a brief summary of the provisions of the Installment Purchase and Trust Agreement (the "Agreement "), which is not intended to be definitive or complete. Copies of the complete Agreement are available from Shearson Lehman Brothers Inc., Portland, Oregon. Agreement to Purchase Project and Pay Purchase Price The County agrees to purchase the Project from the Trustee for a price of $240,000, payable in annual installments of principal, together with semiannual installments of interest (the "Installment Payments "). To provide additional security for the Owners, the County agrees to transfer each fiscal year to the Trustee the sum of the following amounts: (i) for deposit in the Installment Payment Account, the full amount of all Installment Payments due in that fiscal year; plus (ii) for deposit into the Reserve Account, the amount by which. the Debt Service Reserve Requirement exceeds the balance in the Reserve Account. Such transfers shall be made as soon as possible after the beginning of each fiscal year, but no later than August 15th of each year. Amounts on deposit in these accounts on the date of the transfer shall be credited against the transfers required by this paragraph. Such transfers are called the "August 15th Transfers." Title The County has caused marketable title to the Project to be conveyed to the Trustee. Upon payment of all sums due under the Agreement, the Trustee will convey title to the Project to the County. Default and Remedies (a) The occurrence of one or more of the following events shall constitute an Event of Default: (i) The County's failure to make any Installment Payment when due; (ii) The County's failure to make the August 15th transfers to the Trustee prior to September 1 of any year; (iii) The County's failure to comply in any material respect with any other covenant, condition, or agreement of the County hereunder for a period of thirty (30) days after notice thereof from the Trustee; (iv) Any representation or warranty made by the County hereunder shall be untrue in any material respect as of the date made; and /or (v) The County becomes insolvent or admits in writing an inability to pay its debts as they mature or applies for, consents to, or acquiesces in the appointment of a trustee or receiver for the County or a substantial part of its property; or in the absence of such application, consent, or acquiescence, a trustee or receiver is appointed for the County or a substantial part of its property and is not discharged within sixty (50) days; or any bankruptcy, reorganization, debt arrangement or moratorium, or any proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is instituted by or against the County and, if instituted against the County, is consented to or acquiesced in by the County or is not dismissed within ninety (90) days. It shall not constitute an Event of Default under subsection (a)(ii) of this Section in any fiscal year if, by September 1: the County has previously filed with the Trustee an MAI appraisal satisfactory to the Trustee indicating that the unpaid principal due under this Agreement is 75% or less of the appraised value of the Project; any August 15th transfer in that fiscal year, plus amounts available in the Reserve Account, at least equals the Installment Payments due in that fiscal year; and the full amount of the August 15th Transfers was made in the prior fiscal year. 0083 -0160 1 (b) Upon the occurrence of any Event of Default, the Trustee may, and shall upon written request of the Owners of Certificates representing not less than twenty -five percent (25 %) of the principal amount of unpaid Installment Payments, exercise any or all of the following remedies: (i) Declare the unpaid principal balance, together with accrued interest immediately due and payable but such balance and interest may be paid only to the extent of moneys on deposit in any accounts held under the Agreement, moneys appropriated by the County for payments due under the Agreement and moneys realized from the exercise of remedies listed in subsections (b)(ii) and (b)(iii) of this Section; (ii) Judicially foreclose the lien of the Agreement against the Project, in the same manner as mortgages are foreclosed; (iii) Exercise its rights as a secured party under the Uniform Commercial ode; 9 p Y Code; and /or (iv) Pursue and exercise any other remedy available at law or in equity. 1 (c) If an Event of Default occurs as a result of a failure to appropriate funds, the remedies available to the Trustee and the Owners shall be restricted to those described in subsections (b)(i), (b)(ii) and (b)(iii) of this Section. No other remedies shall be available for a default which results from a failure to appropriate funds. (d) The Trustee may rescind any declaration made under subsection (b) of this Section and abandon any exercise of remedies if there has been no failure to pay Owners Installment Payments, and the Event of Default is cured by the County. Such recision and abandonment shall not constitute a waiver of any other Event of Default. Assignment and Leasing The County may not assign or dispose of the Agreement or the Project without the prior written consent of the Owners of Certificates representing at least two - thirds of the unpaid purchase price. The County may lease the Project without consent of the Owners, but the Trustee must receive a security interest in the lease. Prior to any assignment or leasing, the County must obtain the opinion of nationally recognized bond counsel that the assignment or leasing will not cause the interest component of Installment Payments to be taxable under federal income tax laws. Modifications (a) The County may modify the Project if: (i) The modifications do not reduce the value of the Project, and the County so certifies to the Trustee; and, (ii) The County provides the Trustee with prior written notice that there will be modifications to the Project; and, (iii) The modifications become part of the Project, are secured by the lien of this Agreement, and the County provides the Trustee with such documents as the Trustee determines are necessary to evidence the Trustee's interest in the modifications. (b) The County may remove portions of the Project which are worn out, obsolete or unserviceable if the County notifies the Trustee in writing prior to the removal and, (i) The County replaces the removed property with property which performs the functions of the removed property and such replacement property satisfies the conditions of subsection ( a)(iii) of this Section; or -4- 1 1 1 1 1 0083 -0161 (ii) Any proceeds from the sale of the removed property are deposited with the Trustee and used to prepay principal on the earliest possible date; or (iii) The value of the removed property does not exceed $50,000 in any fiscal year and $160,000 in aggregate during the term of the Agreement. Security for Certificates The Certificates represent undivided proportional ownership interests in the principal portion of particular Installment Payments due from the County under the Agreement and the interest due on such principal, and are additionally secured by the accounts held under the Agreement and any sums the Trustee may realize in connection with the exercise of default remedies. The obligation of the County to make Installment Payments under this Agreement is subject to annual appropriation. The Certificates are not secured by the unlimited taxing power of the County, and are not general obligations of the County or the Trustee, but are secured solely as provided in this section. To the extent that funds are appropriated to make Installment Payments, the faith and credit of the County are pledged to the payment of the Installment Payments. Nonappropriation of Funds The County, by entering into the Agreement, acknowledges its current intention to make all Installment Payments on the dates such Installment Payments are due. In the event the County's governing body fails to appropriate sufficient funds to fully fund all of the County's legal obligations to make Installment Payments for any future fiscal period, then the County will immediately notify the Trustee or its assignee of such occurrence and the County's right to possession of the Project, and all its interest in the Project shall terminate as of September 1 of the fiscal year in which the failure to appropriate occurs. In such case, the obligation of the County for the unpaid purchase price shall be limited to previously appropriated money, money held in accounts under the Agreement, and money received from foreclosure of the Project. The County agrees (1) that County staff will, for each fiscal period in which Installment Payments are scheduled to be made, present to the County's Board of Comnissaoners a request that the Board of Commissioners budget for and approve the expenditure of an amount sufficient to allow County to make all Installment Payments due in that fiscal period; (ii) that, to the extent funds are appropriated therefore, it will make all Installment Payments; and (iii) that it will not cancel the Agreement under the provisions of this section if sufficient funds are appropriated and budgeted to it, or by it, for the acquisition, retention or operation of the Project. Trust Accounts The Trustee will hold an Installment Payment Account, a Reserve Account and a Rebate Account. Moneys in the Installment Payment Account and Reserve Account may be used only to pay Installment Payments. Moneys in the Rebate Account will be used to pay rebates required under federal law, if any. Earnings on each account will be credited to each account. If the Reserve Account reaches an amount equal to the highest amount of Installment Payments due in any remaining fiscal year, as a result of interest earnings on the reserve, interest earnings thereafter will be transferred to the Installment Payment Account. The Reserve Account is initially funded with $24,000. Representations and Covenants of the County The County's obligation to the Owners of Certificate is limited to its specific covenants under the Agreement. The County is not liable for the execution, delivery or transfer of any Certificates, the distribution of Installment Payments to the Certificate Owners by the Trustee, or for any other performance by the Trustee of its obligations under the Agreement. The County covenants with the Trustee and the Owners of the Certificates not to take any action which, or omit to take any action which, would cause the interest component of the Installment Payments to be included in gross income under federal income tax laws (except for certain corporate taxes). The County also covenants to comply with the applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code "), unless the County obtains an opinion of nationally recognized bond counsel that such compliance is not required. The County makes the following specific covenants with respect to the Code: 0083-0162 (1) The County will not take any action or omit any action if it would cause the Series 1987 Bonds to become "arbitrage bonds" under Section 148 of the Code. (2) The County shall operate the facilities financed with the bonds so that the Series 1987 Bonds are not "private activity bonds" within the meaning of Section 141 of the Code. (3) The County shall comply with appropriate reporting requirements. (4) The County shall pay, when due, all rebates on the gross proceeds of the Series 1987 Bonds which are required under Section 148 of the Code. The County agrees to pay any and all taxes or other charges imposed on the Project. The County shall service, repair and maintain the Project in good condition, repair, appearance and working order. Additional Obligations Secured by the Project The County shall not issue obligations secured by the Project which have a lien on the Project superior to or on a parity with the Agreement. The County may issue obligations secured by the Project which have a lien on the Project which is subordinate to the Agreement only if: (a) The obligations are issued to finance modifications to the Project; and, (b) Prior to issuing the obligations the County files with the Trustee an MAI appraisal, reasonably satisfactory to the Trustee, appraising the value of the Project as it is proposed to be modified; and (c) The unpaid principal of this Agreement is 75% or less of the MAI appraised value of the modified project. Insurance The County shall maintain standard fire and casualty insurance on the Project in an amount at least equal to the unpaid principal of this Agreement. Policies evidencing this insurance shall be filed with the Trustee, and the Trustee shall be named as loss payee. Any proceeds of such insurance shall be paid to the Trustee. If the County has breached any of its promises in the Agreement (regardless of whether such breach constitutes an Event of Default) and the breach has not been cured by the time insurance proceeds are paid to the Trustee, the insurance proceeds shall be used to prepay Agreement principal 30 days after the Trustee receives the insurance proceeds. If the County has not breached its promises hereunder, or any breach has been cured, and: (a) If the amount of insurance proceeds paid to the Trustee is less than $50,000, the Trustee shall transfer the proceeds of insurance to the County and the County shall use the proceeds, to the extent required, to repair the Project; or (b) If the amount of insurance proceeds paid to the Trustee equals or exceeds $50,000, the County may elect to use the proceeds to prepay agreement principal or to repair or replace the Project. The County shall have 120 days after the Trustee receives the insurance proceeds in which to file a written election with the Trustee to use the proceeds to prepay agreement principal, or to rebuild the Project. (i) If the County elects to use the proceeds to prepay Agreement principal, the insurance proceeds shall be applied to the prepayment 30 days after the County files its election to prepay, or 150 days after the Trustee receives the proceeds if the County fails to file an election within 120 days. 0083 -0163 (ii) If the County elects to use the insurance proceeds to repair or rebuild the Project, the insurance proceeds shall be deposited in the Proceeds Account, and disbursed by the Trustee to the order of the County as the costs of the repair or rebuilding are payable. Mo such proceeds shall be disbursed until the County files with the Trustee an "1AI appraised market value of the structure as it is proposed to be repaired or rebuilt. If the County fails to commence within one year, or complete within three years, the repair or rebuilding of the Project, all available insurance proceeds shall be applied by the Trustee to prepay Agreement principal. (c) If an Event of Default occurs after the Trustee receives insurance proceeds, any proceeds of insurance held by the Trustee shall be applied to the payment of amounts due under the Agreement. The Trustee The Trustee is not liable for actions taken in good faith, unless such actions are negligent or constitute willful default. The Trustee may rely on documents believed by it to be genuine, without conducting additional investigations. The Trustee may deal in the Certificates in the same manner as an Owner. The Trustee is not responsible for any of the statements or representations in the Agreement. Prior to taking any action in connection with an Event of Default, the Trustee may require that the Owners post a bond, or otherwise agree, in a manner satisfactory to the Trustee, to indemnify the Trustee for all of its expenses and any liability it may suffer as a result of such action. The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith unless such action shall constitute negligence or willful default. Defeasance If the County deposits cash or government obligations in escrow which are calculated by a certified public accountant to be sufficient to pay the Installment Payments, without further reinvestment, and the County obtains an opinion from nationally recognized bond counsel that the deposits will not cause the interest component of Installment Payments to be taxable under federal income tax laws, then the Installment Payments shall be payable solely from the cash and government obligations placed in escrow, and the County shall have no further obligation to make Installment Payments. THE PROJECT 0083-0164 Proceeds of this offering will be used by the County to purchase an existing building in downtown Bend, Oregon, for use as storage and warehouse space. The property is zoned for commercial uses. The County is in the process of developing a centralized purchasing system. By instituting the centralized purchasing system along with the availability of adequate storage and warehouse space, the County anticipates significant cost savings in acquiring materials and supplies needed for County operations. The storage and warehouse space will allow the County to purchase supplies in large quantities and receive volume discounts. PROJECT FINANCING The County has requested an MAI appraisal to assist in establishing the market value of the building. The appraisal, conducted in January 1987, established a market value for the building of $245,000. The following tables show the financing plan for purchasing the building. Sources of funds total $240,000 and comprise proceeds from the sale of Certificates of Participation. Uses of funds include the purchase of the building in the amount of $200,000, debt service reserve of $24,000 and costs of issuance, including underwriter's discount, of $16,000. SOURCES AND USES OF FUNDS The proceeds to be received from the sale of the Certificates (other than accrued interest which will be deposited into the Lease Payment Account) are to be applied as follows: Sources of Funds: Principal Amount of Certificates $240,000 Total Sources of Funds Uses of Funds: Building Purchase $200,000 Deposit to Reserve Account 24,000 Cost of Issuance Underwriter's Discount Total Uses of Funds INSTALLMENT PAYMENTS The Agreement requires semi- annual Installment Trustee. In accordance with the Agreement the Trustee in the Installment Payment Account and principal and interest payments due with respec following schedule: Fiscal Year 1987 -88 1988 -89 1989 -90 1990 -91 1991 -92 1992 -93 1993 -94. 1994 -95 1995 -96 1996 -97 1997 -98 1998 -99 1999 -00 2000 -01 2001 -02 0083 -0165 Payments to be made by the County to the Installment Payments will be deposited by the applied on a semi - annual basis to make t to the Certificates, sufficient to meet the Certificate Lease Payments Principal $10,000 10,000 10,000 10,000 10,000 15,000 15,000 15,000 15,000 20,000 20,000 20,000 20,000 25,000 25,000 Interest Total Payments DEBT AND PROPERTY TAX INFORMATION DEBT SUMMARY - As of June 1, 1987 (includes this issue) Outstanding debt: Short -term Long -term: Gross bonded debt (all debt paid with a general obligation pledge) Net direct debt (all debt paid in whole or in part of taxes) Net overlapping debt (as of March 31, 1987) TOTAL NET DIRECT AND OVERLAPPING DEBT DEBT RATIOS 0083-0166 None $ 2,495,000 95,000 48,086,136 $48,181,136 Percent of Assessed Per Capita Valuation Assessed Value $36,554 -- Gross Bonded Debt $ 38 0.10% Net Direct Debt $ 1 0.004% Net Direct and $ 737 2.02 % Overlapping Debt NOTE: 1986 -87 Assessed Value = $2,390,606,753; 1986 population estimate = 65,400. DEBT LIMITATIONS Certificates of Participation Certificates of Participation and the Agreement are not debts within the meaning of constitutional and statutory debt limitations. General Obligation Bonds Oregon Revised Statutes 287.054 limits indebtedness for general obligation bonds issued by counties to two percent of the true cash value of the County. True Cash Value, 1986 -87 Debt Limitation (2% of TCV) Applicable Bonded Debt Debt Margin Percent of limit issued Bancroft Improvement Bonds $2,390,606,753 47,812,135 2,495,000 45,317,135 5.2% DEBT AUTHORIZATION No election is required to issue Certificates of Participation. The Certificates were authorized by a County Resolution adopted , 1987. DEBT MANAGEMENT The County has not defaulted on any debt obligation. The County has not used bond proceeds for operational purposes. FUTURE DEBT PLANS The County may refund an outstanding Bancroft issue currently outstanding in the amount of $1,045,000 this year. In addition, the County may issue tax anticipation notes for cash flow purposes. -10- TABLE 1 DESCHUTES COUNTY OUTSTANDING OBLIGATIONS As of June 1, 1987 0083--0167 Final Date Maturity Amount Amount GENERAL OBLIGATION BONDS Issued Date Issued Outstanding A. Tax - supported Libraries 10/1/78 10/1/88 $ 383,097 $ 95,000 TOTAL TAX SUPPORTED (NET DIRECT) DEBT: $ 95,000 B. Self- supporting one C. General Obligation Improvement (Bancroft) 3onds Improvements 10/1/81 10/1/91 $1,635,000 $1,045,000 Improvements 10/1/84 10/1/94 550,000 475,000 Improvements 12/1/85 12/1/95 940,000 380,000 TOTAL IMPROVEMENT BONDS: $2,400,000 TOTAL GENERAL OBLIGATION BONDS (GROSS DIRECT DEBT): $2,495,000 SHORT - TERM DEBT The County has no short -term debt outstanding. INSTALLMENT PURCHASE AGREEMENTS Certificates of Participation (This issue) 6/1/87 6/1/02 $ 240,000 $ 240,000 Source: Municipal Debt Advisory Commission, Oregon State Treasury. 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C �N r r r CO d4 p p p CD ►-. i /rq 000000000 O U 0. o C ••- LC)UMu OU)OOtatti 0 • R u f� O M f- r r` 01 0 M 0 CO CO C N M 01 el el - r N r et .•- i N C M N N N C 0) to 0 0) O N LID N 4J co +4 C f•) 0>, •-• M CL CL R N.0 1 ,- a O O A J U O O CD CD I-- • C 0 ••• to O • S.. stn 69 0. N R S. MI 0 0) Ur Co -12 0083-0168 financial statements. CO C C C R Derived from U U i O N 1 aOverlapping District Bend School District #1 - Bond 1979 City of Bend City of Redmond Bend School District #1 - Bond 1977 Central Oregon Hospital District Redmond School District #2J Bend School District #1 - Bond 12/77 Sisters School District #6 Bend School District #1 - Bond 1973 Central Oregon Community College IICentral Oregon Park & Recreation District 355,990 Bend Metro Park & Recreation District Redmond School District #23 - Bond 1968 City of Sisters IIBlack Butte Ranch RFPD Send School District #1 3ond 9/73 Lapine REPO Laidlaw :later District Cloverdale RFPD TABLE 3 DESCHUTES COUNTY OVERLAPPING DEBT As of March 31, 1987 0083-0169 1986 -87 Gross (1) Net (2) Assessed Bonded Direct Valuation Debt Debt Percent (in $000) (in $000) (in $000) Overlap OVERLAPPING cross ( I) Net (z ) Bonded Direct Debt Debt (in $000) (in $000) $1,660,576 $13,310 $13,310 100.00% $13,310 $13,310 564,066 13,440 7,875 100.00 13,440 7,875 181,481 6,919 6,719 100.00 6,919 5,719 1,560,576 4,745 4,745 100.00 4,745 4,745 355,990 3,685 3,685 100.00 3,685 3,585 484,241 3,300 3,300 93.32 3,030 3,030 1,660,576 2,660 2,660 100.00 2,660 2,660 271,731 1,800 1,800 100.00 1,800 1,300 1,660,411 720 720 100.00 720 720 3,309,025 1,034 960 72.25 747 594 575 575 100.00 575 575 912,286 540 540 100.00 540 540 523,483 570 570 93.80 535 535 37,581 409 409 100.00 409 409 132,014 275 275 100.00 275 275 1,660,411 175 175 100.00 175 175 139,902 110 110 100.00 110 110 6,086 98 98 100.00 98 98 36,992 82 82 100.00 32 82 $53,90.4 $48,085 IINOTE: Columns may not foot due to rounding. I(1) Gross bonded debt includes all bonds backed by a general obligation pledge including Bancroft Act general obligation improvement bonds and self- supporting general obligation bonds. (2) Net direct debt includes all tax - supported bonds. Bancroft Act general obligation improvement bonds and self- supporting bonds are excluded. 1 1 Source: Municipal Debt Advisory Commission, Oregon State Treasury. -13- SYNOPSIS OF PROPERTY TAX ADMINISTRATION (Portions of narrative from the Multnomah County Tax Supervising and Conservation Commission. Procedures apply statewide.) 0083 -01'70 The property tax is used by Oregon cities, counties, schools and other special districts to raise revenue to defray the expense of local government. The State of Oregon has not levied property taxes since;1941 and obtains its revenue principally from income taxation. Property tax administration, governed by the Oregon Constitution, the state's taxation laws and regulations of the Department of Revenue, involves the process of assessment, equalization, levy and collection of taxes. Assessment and Equalization The process of identifying and assigning a value to taxable property is termed assessment and the process of maintaining uniformity of values between property owners and various classes of property is termed equalization. Assessment of property is administered by the county assessor except for public utility property which is assessed by the State Department of Revenue. All property is reappraised in 6 -year cycles and values are adjusted annually to maintain assessments within a 5% deviation of county -wide market value. Equalization of values is performed by the county Board of Equalization. Administrative and judicial remedies are available to property owners who disagree with assessments. Property which is assessed for taxation includes all privately owned real property (land, buildings and improvements) and personal property (machinery, office furniture, equipment and livestock). There is no property tax on household furnishings (exempt in 1913), personal belongings, automobiles (exempt in 1920), crops, orchards, business inventories or intangible property such as stocks, bonds, or bank accounts. Property used for religious, fraternal and governmental purposes is exempt and reductions in assessments are granted for veterans' homesteads and certain farm lands. The assessment roll, a listing of all taxable property, is prepared as of January 1st of each year. Prior to 1980 assessed and true cash value were identified as market value for all classes of property. Beginning with 1980 -81 taxable property is divided into two classes: "Homestead" and "All Other" (distinction has since been eliminated -- see following sections). The Homestead class consists of owner occupied single family residences. Property is appraised at true cash value (market value) but is assessed in a manner that limits the state -wide annual growth to 5% for either class. The statewide ratios of assessed to true cash values have been: 1980 -81 1981 -82 1982 -83 1983 -84 1984 -85 1985 -86 Homesteads 84.2% 81.6 83.8 90.3 96.0 100.0 All Other 87.6% 84.4 85.1 90.9 96.0 100.0 This distinction between T.C.V. and A.V. was eliminated effective fiscal year 1985 -86. Tax Levy The process of ascertaining and declaring the amount of taxes to be raised from taxpayers is termed making the levy. Authority to levy property taxes is vested with the governing body of each local government unit. The governing body determines the levy annually before July 15th as part of the budget process. Annual budgets for local units are based on a fiscal year which begins July 1st and ends the following June 30th. Constitutional and statutory limitations on the amount that a governing body may levy are: 1. Levy Within 6% Limitation (Tax Base Levy). A tax base, approved by a majority of voters at a general election, represents permanent authority to annually levy a dollar amount which cannot exceed the highest amount levied in the three most recent years in which a levy was made, PLUS six percent thereof. Tax Base levies may also be increased in proportionate amounts for annexed territory. A local unit is permitted to have but one tax base levy and proceeds may be used for any purpose for which the unit may lawfully expend funds. 2. Levy Outside 6% Limitation (Special, Serial or Continuing Levy). Special and serial levies are temporary taxing authority permitting the levy of a specific dollar amount for one year (Special) or for two or more years up to ten years (Serial). Continuing levies are those approved by voters prior to 1953, are permanent in nature and are limited in amount by the product of the voted tax rate and the assessed value of the unit. Since 1978 Serial levies may also be established based on a specified tax rate but the term may not exceed three years. Not more than four serial levy measures may be proposed in a given year. Special levies are limited in size by the net tax rate freeze described later in this section. 3. Levy Not Subject to 6% Limitation (Debt Levy). Local units are required to annually levy an amount sutticrent to pay principal and interest costs for a bonded debt. Bond measures to be paid from future tax levies must first be approved by a majority of those voting unless otherwise provided by law. Proceeds from a debt levy cannot be diverted to another purpose. 1 1 t 1 1 1 1 Collection The County Assessor extends authorized levies and computes tax rates. The Tax Collector bills and collects all taxes and makes periodic remittances of collections to tax levying units. As each year's taxes for all taxing bodies within a county are collected, the money is placed in an unsegregated pool and each taxing body shares in the pool on the basis of its tax rate regardless of the actual collection experience within each taxing body. Therefore, in application, the amount of each taxing body becomes a pro rata share of the total tax collection record of all taxing bodies within the County. Thus, an overall collection rate of 90 percent of the county -wide levy ind p-��,p0 tax,levy collection for each taxing body. U)(i '1�:�� Taxes are levied and become a lien on July 1st (the lien date for personal property is January 1) and tax payments are due November 15th of the same calendar year. Under the partial payment schedule the first third of taxes are due November 15, the second one -third on February 15 and the remaining one -third on May 15. Prior to 1980 -81, taxes were paid in quarterly installments with a final payment on August 15. Since the fiscal year ends June 30, the final August 15 payment made the collection rate for years prior to 1980 -81 lower; however this payment was not "delinquent" and was allocated toward the proper levy in the recent tax collection rates. For 1980 -81 and thereafter, the collection rate reflects actual current -year levy collections during each fiscal year. A 3% discount is allowed if full payment is made by the due date, 2% for a two- thirds payment. For late payments interest accrues after each tri- mester at a rate of 1% per month. Property foreclosure proceedings are initiated four years after the tax due date. Tax statements mailed to property owners state the assessed value of property, the tax rate and the amount of taxes due and levied by each local unit. Tax rates, expressed as an amount per $1000 of assessed value, are obtained by dividing the taxable assessed value of a local unit into the taxes levied. Property Tax Limitation Measures In 1978, 1980, 1982, 1984 and again in November 1986, voters rejected 1.5% property tax limitation measures. The most recent measure included a limitation upon property taxes of $15 per $1000 assessed valuation, a roll back of assessed valuation to July 1, 1981, an annual 2% limitation upon assessed valuation increases, a provision that taxing units in 1985 -86 divide collected taxes in the same proportion as for fiscal year 1983 -84 (leaving future allocations to the State Legislature), and provision for two elections annually wherein the tax levy may be increased outside the 1.5% limitation by a majority of voters provided that at least 50% of legal voters of the taxing unit vote on the question. The measure also exempted bonded indebtedness authorized prior to the election. In January 1987, proponents of this same measure filed a prospective petition with the Oregon Secretary of State, to place it on the ballot in the 1988 general election. In order to get this constitutional measure on the ballot, petitioners must collect signatures equal to eight percent of the vote for all candidates for governor at the previous general election, which in this case is 84,770 signatures. The deadline for returning these signatures to the Secretary of State's office is July 8, 1988. -15- 1 Fiscal Assessed Year Valuation 1981 -82 $2,008,766,982 1982 -83 2,119,156,914 1983 -84 2,302,855,955 1984 -85 2,372,020,585 1985 -86 2,430,599,685 1986 -87 2,390,606,753 1981 -86 Compounded Annual Rate of Change: TABLE 4 DESCHUTES COUNTY TAX COLLECTION RECORD Percent Tax Rate Change Total Levy Per $1000 -- $3,783,483 $1.87 5.5% 4,539,388 2.14 8.7 4,535,715 1.96 3.0 4,608,990 1.94 2.5 4,863,483 2.00 -1.6 5,095,492 2.10 3.5% Percent Collected Year of Levy 83.2% 84.1 84.7 85.6 86.6 80.53 I 0083 -0172 I Total Percent Collections Collected as a Percent as of of Current Levy 04/30/87 92.0% 93.8 97.3 101.1 100.9 1The levy shown in this table was adjusted by certain offsets before calculations of the tax rate. 2Does not include interest, therefore the percentage cannot exceed 100 percent. 3lncludes collections through April 30 only. Source: Deschutes County Assessor's and Tax Collector's Offices. 99.6% II 99.3 96.8 94.4 92.2 II 80.53 r r r 1 I _ I _ I I_ F_ I _ i TABLE 5 DESCHUTES COUNTY CONSOLIDATED TAX RATE (Code Area 1 -1) District Bend Administrative School District No. 1 City of Bend DESCHUTES COUNTY Central Oregon Community College Deschutes Educational Service District Deschutes County Extension & 4 -H Central Oregon PUD TOTAL 1986 -87 Tax Rate Per $1000 $12.56 6.25 2.10 1.53 0.26 0.04 0.00 $22.74 008, 0173 Percent of Total 55.2% 27.5 9.2 6.7 1.1 0:2 0.0 100.0 NOTE: Code Area 1 -1 has a total assessed value of $497,919,575 or approximately 20.8 percent of the County's total assessed valuation. Source: Deschutes County Assessor's Office. Name Pacific NW Bell Telephone Co. Daw Forest Products Co. Pacific Power & Light Co. Sunriver Properties Oregon Ltd. United Telephone Co. of NW Willamette Industries Inc Brooks Resources Corp. Concord Equity Multiplier Cascade Natural Gas Corp. Mt. Bachelor Inc. El Dorado Properties Pacific Gas Transmission Bend Millwork Inc. Eagle Crest Partners Ltd. ATT Communications TABLE 6 DESCHUTES COUNTY MAJOR TAXPAYERS Enterprise Phone utility Lumber mill Electric utility Recreation resort Phone utility Particleboard plant Real estate Shopping mall Gas utility Ski resort Real estate Gas utility Door frames, window parts Recreation resort Phone utility. 'Total 1986 -87 assessed value of the County is $2,390,606,753. Source: Deschutes County Assessor's Office. -17- 1986 -87 Percent Assessed of Total Valuation A.V. $40,664,115 1.70% 21,027,135 0.88 20,286,923 0.85 16,238,600 0.68 11,318,667 0.47 11,280,250 0.47 9,842,210 0.41 9,276,460 0.39 7,226,957 0.30 6,515,900 0.27 5,843,620 0.24 5,628,705 0.24 5,093,280 0.21 4,925,855 0.21 4,661,500 0.19 FINANCIAL INFORMATION BASIS OF ACCOUNTING 0083 -0174 The governmental fund types are maintained on the modified accrual basis of accounting. The proprietary fund types are accounted for utilizing the accrual basis of accounting. FISCAL YEAR: July 1 to June 30 AUDITS The Oregon Municipal Audit Law (ORS 297.405 - 297.555) requires an audit and examination be made of the accounts and financial affairs of every municipal corporation at least once each year, unless that municipal corporation's aggregate receipts and expenditures did not exceed $100,000 for the year. Unless the municipality elects to have the audit performed by the State Division of Audits, the audit shall be made by accountants whose names are included on the roster prepared by the State Board of Accountancy. The County audits for the fiscal years 1981 -82 through 1985 -86 were performed by Donaca, Battleson & Co., P.C., C.P.A., Bend, Oregon. The auditors did not review the tables and offer no opinion regarding the tables. A partial copy of the County's June 30, 1986 audited financial statement is contained in Appendix A. BUDGETING PROCESS The County prepares an annual budget in accordance with the Oregon Local Budget Law. ORS 294 establishes standard procedures for preparing, presenting and administering the operating budget for all local governments. The law mandates public involvement in budget preparation and public exposure of its proposed programs. The law also requires that the budget be balanced. Prior to adoption, the proposed budget must be approved by a budget committee consisting of three commissioners and an equal number of laypersons. In an advertised public meeting, the budget committee reviews the budget and the "budget message," which explains the budget and significant changes in the local government's financial position. All budget committee meetings are open to the public. Following budget approval by the budget committee, another public hearing is held. A budget summary and notice of hearing are published prior to the hearing. Publication is governed by strict requirements as to time and mode. After the budget hearings, the governing body considers citizens' testimony and, if necessary, alters the budget subject to statutory limitations upon increasing taxes or fund allocations without further publication and hearing. An election must be held to approve the County's tax levy to the extent that the budget exceeds the County's "Tax Base ". A tax base is equal to 106 percent of the largest regular tax levy within the prior six percent limitation for the prior three years. The County's 1986 -87 tax base is $4,959,705. In addition, the County has levied $40,950 for bonded debt service. Beginning with fiscal year 1987 -88 the County will levy the first of a two -year, $250,000 per year, serial levy for 9 -1 -1 emergency communications. After the election, if one is required, the governing body prepares a formal resolution or ordinance that adopts the budget, authorizes taxes to be levied and sets out a schedule of appropriations. This resolution or ordinance must be adopted not later than June 30. Two copies of the budget are submitted to the Assessor's Office before July 15 so that the tax levy may be certified. Appropriation transfers may be prepared as needed during the fiscal year. Supplemental budgets for unanticipated revenues are considered and adopted by the same process as the regular budget, including public hearings and are appropriated upon adoption of the supplemental budget. -18- 1 1 1 1 1 1 1 t 1 1 1 1 1 t 1 Fund General School Library Sheriff's Levy Road Solid Waste TABLE 7 DESCHUTES COUNTY SUMMARY OF 1986 -87 BUDGET 0083 -0175 Percent Allocation Amount of Fund (in $000) Major Revenue Sources' (in $000) Revenue $9,287 Property taxes $4,650 50.1% Beginning cash balance 1,300 14.0 Transfers from other funds 937 10.1 1,490 Forest receipts 1,256 84.3 Tax on electric co -ops 140 9.4 Federal mineral leases 88 5.9 913 Transfer from General Fund 626 68.5 Beginning cash balance 150 16.4 Prior year tax collections 110 12.0 3,120 Transfer from General Fund 1,930 61.8 Beginning cash balance 600 19.2 Prior year tax collections 375 12.0 5,842 Forest receipts 3,013 51.6 Motor vehicle revenue 1,491 25.5 Beginning cash balance 914 15.6 1,209 Franchise fees 360 29.8 Beginning cash balance 350 29.0 Private disposal fees 295 24.4 Commercial disposal fees 115 9.5 Mental Health Services 1,692 State grant 996 58.9 Transfer from General Fund 332 19.6 Title 19 124 7.3 Transient Room Tax 800 Room tax 750 93.8 Beginning cash balance 50 6.3 Revenue Sharing 938 Beginning cash balance 609 64.9 Revenue sharing 314 33.5 Insurance Reserve 1,229 Beginning cash balance 840 68.4 Bancroft Bond Redemption Other Funds2 County Totals Less Interfund Transfers Final County Totals Transfer from General Fund 152 12.3 Transfer from Road Fund 128 10.4 860 Assessment payments 450 52.3 Beginning cash balance 400 46.5 2,204 29,584 (4,570) $ 25,014 'Includes revenue sources in excess of five percent of total fund revenues. 2lncludes 19 funds with allocations of less than $500,000. Source: Deschutes County 1986 -87 Adopted Budget. -19- TABLE 8 DESCHUTES COUNTY GENERAL FUND STATEMENT OF REVENUES AND EXPENDITURES (in $000) 0083 -0176 Percent of 1985 -86 Total Revenues/ 1981 -82 1982 -83 1983 -84 1984 -85 1985 -86 Expenditures U REVENUES: Local sources: Taxes $1,057 $1,897 $1,273 $1,424 $1,541 41.3% Licenses and fees 1,185 710 801 840 974 26.1 Fines and forfeitures 201 158 -- Charges for services 334 170 149 196 154 4.1 Interest 306 234 339 271 215 5.8 Other local sources 38 134 121 89 165 4.4 Intergovernmental: Federal 264 287 407 262 148 4.0 State 526 372 379 427 493 13.2 Counties and cities 31 33 35 35 39 1.0 Total Revenues 3,942 3,994 3,505 3,543 3,730 100.0% EXPENDITURES: General government 538 712 612 820 1,086 General services 2,351 2,508 2,233 2,929 3,403 Health and welfare 519 413 501 458 401 Sanitation 603 139 -- -- -- Capital Outlay 120 277 4 7 67 Total Expenditures 4,131 4,048 3,350 4,215 4,956 Revenues over (under) expenditures (190) (54) 155 (672) (1,226) OTHER FINANCING SOURCES (USES): Operating transfers in 530 564 1,182 1,134 1,427 Operating transfers out (375) (361) (390) (398) (453) Total other financing sources 155 203 792 736 968 (uses) Revenues over (under) expenditures and other financing sources. (uses) (34) 149 947 64 (258) Fund Balance, Beginning of Year Fund Balance, End of Year 509 475 624 1,571 1,635 $ 475 $ 624 $1,571 $1,635 $1,378 Source: Derived from annual financial statements. 61.7% 68.7 8.1 1.3 100.0% i i 1 i 1 1 i 1 i TABLE 9 DESCHUTES COUNTY GENERAL FUND CONSECUTIVE BALANCE SHEETS As of June 30 of Given Year 1984 1985 0083-0177 1986 ASSETS: Cash and investments $1,499,940 $1,585,107 $1,266,553 Property taxes receivable 461,236 444,414 424,024 Accounts receivable 81,224 41,197 66,464 TOTAL ASSETS $2,042,400 $2,070,718 $1,757,041 LIABILITIES AND FUND EQUITY: Liabilities: Accounts payable Deferred revenue Total Liabilities Fund Balance: Undesignated Total Fund Equity $ 33,045 $ 50,563 438,143 384,711 $ 471,188 $ 435,274 1,571,212 1,635,444 1,571,212 1,635,444 TOTAL LIABILITIES AND FUND EQUITY $2,042,000 $2,070,718 Source: Derived from annual financial statements. $ 40,081 339,371 $ 379,452 1,377,589 1,377,589 $1,757,041 TABLE 10 uESCHUTES COUNTY GENERAL FUniD CURRENT STATEMENT OF REVENUES AND EXPENDITURES As of April 30, 1987 (Unaudited) 0083 -0178 Percent of Budget Received/ Budgeted Actual Expended REVENUES: Local sources: Taxes $4,650,000 $4,168,154 89.6% Interest 150,000 153,017 102.0 Licenses, fees and permits 1,002,505 838,636 83.7 Other local sources 50,140 30,528 60.9 Intergovernmental: Federal 139,800 139,452 99.8 State 894,660 794,316 88.8 Other governmental 163,642 111,499 68.1 Total Revenues 7,050,747 6,235,602 88.4 Beginning Fund Balance 1,300,000 1,226,472 94.3 Interfund transfers 936,500 675,000 72.1 TOTAL RESOURCES 9,287,247 8,137,074 87.6 TOTAL EXPENDITURES 9,287,247 6,405,253 69.0 FUND BALANCE, APRIL 30, 1987 $1,731,822 Source: Deschutes County. (unaudited). DESCHUTES COUNTY 0083-0179 GENERAL INFORMATION Deschutes County, located in Central Oregon, was formed in 1916 from a portion of Crook County. The County contains an area of approximately 3,060 square miles. Population in the County is estimated at 65,400 in 1986 with concentrations in three cities: Bend, the County seat (pop. 18,575), Redmond (6,830) and Sisters (725). The County's population has grown at an annual rate of 4.5 percent over the past ten years with most of the growth occurring in the unincorporated portion. About 60 percent of the County's population now lives in unincorporated areas compared to 49 percent in 1976. In recent years, recreational activities have emerged as a major economic force °within the County. The Mt. Bachelor Ski Resort, one of the major ski areas in the Pacific Northwest, the Inn of the Seventh Mountain, the Sunriver Resort and other local resort areas provide recreational activities on a year -round basis while employing many of the approximately 3,000 people employed in tourist- related industries within Deschutes County. Expansion activities at Mt. Bachelor have further enhanced the recreational sector of the County's economy. During the past decade, the development of these resort areas brought corresponding increases in construction, finance, real estate and services employment. The wood products industry dominates the manufacturing activity in the County providing an annual average of 2,150 jobs in 1984, 73 percent of all manufacturing employment. Plywood, particleboard, millwork, furniture components and mobile homes are the major wood products of the region with manufacturing plans located primarily in Bend and Redmond. During the 1970s, employment in the remanufacturing of wood products surpassed employment in basic lumber production. According to the State Employment Division, the County has attracted a number of non - lumber manufacturers, giving the County one of the most varied manufacturing bases east of the Cascades. GOVERNMENT AND ADMINISTRATION The County is governed by the Board of County Commissioners consisting of three elected full -time members. The Board is responsible for the administration of the County in general. Other elected officials, which are responsible for the administration of their specific departments, include the District Attorney, Clerk, Sheriff, Treasurer, Assessor, and Surveyor. TABLE 11 DESCHUTES COUNTY BOARD OF COMMISSIONERS AND MAJOR OFFICIALS OF THE COUNTY Prior Service Term Commissioner Occupation Began Ends Lois Bristow Prante, Chair Management & Marketing 1/1/83 12/31/90 Consultant Tom Throop State Legislator 1/1/87 12/31/90 Dick Maudlin Insurance Broker 1/1/85 12/31/88 Elected Officials District Attorney: Mike Dugan (Term Expires - 1990) County Treasurer: Helen Rastovich (1990) County Clerk: Mary Sue Penhollow (1990) County Assessor: Oscar Bratton (1990) County Sheriff: Darrell Davidson (1988) County Surveyor: David Hoerning (1988) Appointed Officials Administrative Services Director: Michael A. Maier County Legal Counsel: Richard L. Isham Source: Deschutes County. ECONOMIC AND DEMOGRAPHIC INFORMATION POPULATION 0083-0180 The population of Deschutes County increased from 41,800 in 1976 to 65,400 in 1986, an annual increase of 4.6 %. Population centers include the City of Bend which has experienced a growth of 2,575 persons over the ten year period 1976 to 1986, and the City of Redmond, which experienced an annual growth rate of 4.1 percent for the past ten years. But the primary growth in the County occurred in the unincorporated portions of the County. About 60 percent of the County's population resides in unincorporated areas compared to 49 percent in 1976. Preliminary population figures as of July 1, 1986 estimated the County's 1986 population to be 65,400. EMPLOYMENT The civilian labor force in Deschutes County increased from 19,380 in 1976 to 33,350 in 1986, a 5.6 percent annual increase. In 1976, 20.7 percent of workers were employed in manufacturing, while 79.3 percent were in non - manufacturing jobs. By 1986 manufacturing employment had decreased to 19.2 percent, while non - manufacturing employment increased to 80.8 percent. Trade Employment in wholesale and retail trade accounted for 23.5 percent of jobs in 1985, making it the largest employment sector in the County. In 1974, trade made up 22.5 percent of employment. The sector had an annual growth rate of over 5 percent, while showing a net increase of 2,280 jobs. Service and Miscellaneous This sector is the second largest in the County providing 23.1 percent of jobs in 1985. The sector experienced an annual growth rate of over 9 percent during the ten year period from 1975 to 1985. The number of jobs available in this sector more than doubled during the ten year period. In 1975, there were 2,280 positions; by 1985 the number of positions increased to 5,410. Government The third largest employment sector in Deschutes County is government with 17.3 percent of jobs in 1985. The sector experienced an annual growth rate of 2.5 percent between 1975 and 1985. Though the number of jobs increased by 880, the employment share of the County decreased from 22.2 percent in 1975 to 17.3 percent in 1985. TOURISM In recent years, recreational activities have emerged as a major economic force within the County. The Mt. Bachelor Ski Resort, one of the major ski areas in the Pacific Northwest, the Inn• of the Seventh Mountain, the Sunriver Resort and other local resort areas provide recreational and tourist activities on a year -round basis while employing many of the estimated 3,000 persons employed in tourist - related industries within the County. On -going expansion at Mt. Bachelor will further enhance the recreational sector of the County's economy. MUNICIPAL SERVICES Water and Sewer In unincorporated areas of the County there are a number of independent water districts. Incorporated cities and towns are responsible for their own water supplies. Sewer services are provided primarily by incorporated cities within the County. Unincorporated areas generally are served by septic tanks and independent sanitary districts, except Seventh Mountain County Service District. 0083 -0181 Sheriff and Fire Deschutes County, along with the Oregon State Police, assumes considerable responsibility for law enforcement within the County. The cities in the County contract with a number of rural fire protection districts to provide protection services in most unincorporated areas. Incorporated cities are responsible for their own protection services. Beginning with fiscal year 1987 -88, the County will levy the first of a two -year serial levy in the amount of S25O,OOO per year for the 9 -1 -1 Emergency Communications. Transportation The maintenance and repair of county roads is one of Deschutes County's responsibilities. Routine maintenance is provided on a regular basis with major repairs, extensions and replacements financed through state and federal revenues. A number of special road districts have been formed to provide for road maintenance and repair. Health Care Health care services in Deschutes County are provided by St. Charles Medical Center and Central Oregon District Hospital. In addition, health care services to the elderly are provided by four convalescent homes, three of which are located in Bend, and one is located in Redmond. Library and Parks Deschutes County operates a library with its main branch in Bend and other branch offices at two sites around the County. Major park facilities are provided by the Central Oregon Park and Recreation District and the Bend Metropolitan Park and Recreation District. Schools The County has no direct responsibility to provide school facilities and services. This responsibility lies with independent school districts #1 (Bend), #2J (Redmond), #6 (Sisters), and #15 (Brothers). INFORMATION Historical data has been collected from generally accepted standard sources, usually from public bodies. In Oregon, data is frequently available for counties and also, to a somewhat lesser degree, for cities. This statement presents data for Deschutes County, as well as cities within the County when available. ECONOMIC AND DEMOGRAPHIC TABLES The tables that follow provide further information about the economic and demographic nature of the County. Year 1976 1981 1982 1983 1984 1985 1986 1976 -86 Compounded Annual Rate of Change: 1981 -86 Compounded Annual Rate of Change: Source: March Deschutes County 41,800 63,650 64,350 63,300 64,000 65,400 65,400 TABLE 12 DESCHUTES COUNTY POPULATION ESTIMATES 0083-0182 City of City of City of Bend Redmond Sisters Unincorporated 16,000 4,560 760 20,480 17,425 17,800 17,840 18,270 18,450 18,575 6,575 6,615 6,605 6,675 6,740 6,830 4.6% 1.5% 4.1% 0.5% 1.3% 0.8% 690 730 730 720 740 725 38,960 39,205 38,125 33,335 39,920 39,270 -0.5% 6.7% 1.0% 0.2% Under state law, the State Board of Higher Education must estimate annually the population of Oregon cities and counties so that shared revenues may be properly apportioned. The Center for Population Research and Census at Portland State University performs this statutory duty. Year 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 19872 TABLE 13 DESCHUTES COUNTY AVERAGE ANNUAL UNEMPLOYMENT AS A PERCENT OF LABOR FORCE1 Deschutes County 9.6% 7.6 6.8 9.0 11.9 13.9 16.0 12.7 12.0 10.9 10.3 8.8 State of Oregon 9.6% 7.3 6.0 6.8 8.2 9.7 11.5 10.8 9.4 8.8 8.5 6.9 United States 7.7% 7.0 6.0 5.8 7.1 7.6 9.7 9.6 7.5 7.3 6.9 6.9 lAnnual averages derived from monthly data. 2March 1987 figures are raw rates. Seasonally adjusted rates for Oregon and the U.S. were 6.3 and 6.6 percent, respectively. Seasonally adjusted rates are not available below the state level. Source: State of Oregon Employment Division, Department of Human Resources. TABLE U 0083 EMPLOYMENT - D ANNUAL EAVERAGES AND PERCENT -Ol 83 DISTRIBUTION BY INDUSTRY GROUP 1976 -86 Compound Annual Percentl Percentl Rate of 1976 of Total 1986 of Total Change CIVILIAN LABOR FORCE 20,900 34,830 5.2% UNEMPLOYMENT 2,000 3,590 6.0 Percent of Labor Force 9.6% 10.3% TOTAL EMPLOYMENT 18,900 31,240 5.2 TOTAL WAGE AND SALARY EMPLOYMENT 15,980 100.0% 24,730 100.0% 4.5% MANUFACTURING TOTAL 3,420 21.4% 4,550 18.4 2.9% Durable Goods: Lumber & Wood 2,510 15.7 3,020 12.2 1.9 Other Durable Goods 570 3.6 950 3.8 5.2 Non - Durable Goods: Food Products 90 0.6 120 0.5 2.9 Other Non - durable 250 1.6 460 1.9 6.3 Goods NON- MANUFACTURING TOTAL 12,560 78.6% 20,180 81.6% 4.9% Trade 3,580 22.4 6,200 25.1 5.6 Services & 2,550 16.0 5,690 23.0 8.4 Miscellaneous Government 3,380 21.2 4,300 17.4 2.4 Finance, Insurance 1,290 8.1 1,760 7.1 3.2 & Real Estate Construction 850 5.3 1,250 5.1 3.9 Transportion, 910 5.7 990 4.0 0.8 Communications & Utilities LABOR- MANAGEMENT DISPUTES 0 50 NOTE: Columns may not foot due to rounding. 1Percent of Total is based on total wage and salary employment. 2lncludes non - agricultural wage and salary, self - employed, unpaid family workers, domestics, agricultural workers and labor disputants. Source: State of Oregon Department of Human Resources, Employment Division. Manufacturing Bend Millwork Systems DAW Forest Products DAW Forest Products DAW Forest Products Willamette Industries Beaver Coaches Fuqua Homes The Bulletin Tektronix Non - Manufacturing Sunriver Mt. Bachelor St. Charles Medical Center Public Employers TABLE 15, DESCHUTES COUNTY MAJOR EMPLOYERS Product or Service Millwork Sawmill (Bend) Sawmill (Redmond) Softwood Veneer & Plywood Particleboard Motor Homes Mobile Homes Newspaper Electronic Components Resort Ski Resort Hospital Deschutes County Government School Districts Education Federal Government Government State Government Government Central Oregon Community College Education 0083-0184 June. 1985 May 1987 650 1,4001 550 550 190 2.14 203 212 200 196 180 150 100 120 100 110 140 140 'Includes former employees of Pozzi Window Co., now part of Bend Millwork Systems. 2Sunriver has approximately 200 year -round employees and 200 -300 seasonal employees during the peak season of May through September. 3Mt. Bachelor estimates they have 120 off - season employees and up to 575 employees during the ski season. 4Employment exceeds 800 during the summer months. Full -time employees only. College also has a number of part -time employees. Source: Contact with company or agency. Oregon Economic Development Department, Directory of Oregon Manufacturers. State of Oregon, Employment Division. 200 -5002 120 -5753 720 380 681 5404 500 1705 TOTAL1 PERSONAL INCOME Year (in millions) 1980 1981 1982 1983 1984 1985 $510 545 559 606 673 N.A. 0083 -0185 TABLE 16 DESCHUTES COUNTY INCOME ESTIMATES MEDIAN HOUSEHOLD PER CAPITA INCOME1 EFFECTIVE BUYING INCOME2 Deschutes County $ 8,079 8,597 8,772 9,516 10,337 N.A. State of Oregon $ 9,356 9,959 10,167 10,734 11,613 N.A. Deschutes County $17,984 18,552 17,823 19,615 21,364 19,9823 State of Oregon $17,953 19,036 19,571 20,825 22,796 21,385 1Source: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business. 2Source: Sales & Marketing Management, Survey of Buying Power. 3Due to revised estimating procedures used in the "Survey of Buying Power," Median Household Effective Buying Income (MHEBI) figures were revised downward by an average of 12% in 1985. Therefore, a decline in MHEBI from the prior year may reflect the revised estimating procedure rather than an actual decline in income. RETAIL SALES Year (in $000) 1980 $380,296 1981 403,304 1982 416,133 1983 436,535 1984 340,299 1985 353,106 1986 N.A. TABLE 17 DESCHUTES COUNTY MISCELLANEOUS ECONOMIC INFORMATION BUILDING ACTIVITY2 Residential Construction Value (in $000) $49,974 27,824 19,311 25,353 20,855 39,030 37,206 Non - Residential Construction Value (in $000) $25,570 15,799 5,865 4,387 10,456 15,487 11,376 BANK3 GROSS FARM DEPOSITS SALES4 (in $000) (in $000) $292,366 $11,905 273,812 12,559 277,117 13,416 312,588 20,323 316,073 24,785 333,441 24,949 N.A. 24,613 1Source: Sales & Marketing Management, Survey of Buying Power. 2Source: Oregon Department of Commerce, Housing Division. 3Source: Oregon Department of Commerce, Banking Division. 4Source: Extension Economic Information Office, Oregon State University. LITIGATION 0083-0186 Upon delivery of the Certificates to the Underwriter, a certificate of no litigation will be provided by the County which will state that there is no litigation pending, seeking to restrain or enjoining the issuance or delivery of the Certificate or questioning or affecting the legality of the Certificates or the proceeds and authority under which the Certificates are issued or which in any manner question the right of the County to adopt the Indenture to the Lease- Purchase Agreement. AUDITS The most recent audit report is for the fiscal year ended June 30, 1986, which was rendered by Donaca, Battleson & Co., P.C., independent certified public accountants. Donaca, Battleson & Co. was not requested to review this Official Statement and has not completed any additional auditing or review procedures subsequent to the issuance of the report on the 1986 fiscal year. UNDERWRITING The Certificates are being purchased by Shearson Lehman Brothers Inc., Foster & Marshall Division, as Underwriter at a price of plus accrued interest. The purchase contract provides that the Underwriter will purchase all the Certificates, if any are purchased, subject to certain terms and conditions set forth in the purchase contract, including the approval of certain legal matters by counsel. The Underwriter intends to offer the Certificates to the public at the initial offering prices shown on the cover page hereof, wnich price may subsequently change without any requirement of prior notice. The Underwriter may offer and sell the Certificates to certain dealers and certain dealer banks acting as agents at prices lower than the public offering prices stated on the cover page hereof. APPROVAL OF LEGAL PROCEEDINGS Legal matters incident to the authorization, issuance and sale of the Certificates are subject to the opinion of Lindsay, Hart, Neil & Weigler, Portland, Oregon, Bond Counsel, whose opinion will be available at the time of delivery of the Certificates. TAX EXEMPTION In the opinion of Bond Counsel, assuming compliance by the County with its covenants relating to the tax - exempt status of the Certificates, interest on the Certificates is excludible from gross income under the income tax laws of the United States and is not includible in taxable income under the personal income tax laws of the State of Oregon. However, under the income tax laws of the United States, interest is subject to: (i) alternative minimum taxes on the book income of corporations; and, (ii) taxes on corporate alternative minimum taxable income imposed under the Superfund Amendments and Reauthorization Act of 1986. The Commission has the legal authority to comply with its covenants relating to the tax - exempt status of the Certificates. The Certificates are not "private activity Certificates" under Section 141 of the Internal Revenue Code. The Certificates are "qualified tax - exempt obligations" under Section 265(b)(3) of the Internal Revenue Code. MISCELLANEOUS All quotations from and summaries and explanations of provisions of law herein do not purport to be complete and reference is -made to said laws for full and complete statements of their provisions. This Official Statement is not to be construed as a contract or agreement between the County and the purchasers or holders of any of the Certificates. Any statements made in this Official Statement involving matters of opinion are intended merely as opinion and not as representation of fact. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the County since the date hereof. 0083-0187 CONCLUDING STATEMENT All estimates, assumptions, statistical information and other statements contained herein, while taken from sources considered reliable, are not guaranteed by the Underwriter. So far as any statement herein includes matters of opinion, whether or not expressly so stated, they are intended merely as such and not as representations of fact. The information contained herein should not be construed as representing all conditions affecting the County or the Certificates. Additional information may be obtained directly from the County. The contents hereof, starting with the cover page and including the following Appendices are all parts of this Official Statement and have been approved by the County. The County will deliver to the Underwriter'at the time of delivery of the Certificates, a statement substantially to the effect that, after due review, the facts contained in this Official Statement are as of the date of delivery of the Certificates, true and correct in all material respects and that the Official Statement did not, and does not, contain any untrue statement or omit to state a material fact required to be stated or necessary to make a statement not misleading in light of the circumstances under which it is made. 0083 -0188 APPENDIX A: JUNE 30, 1986 AUDITED FINANCIAL STATEMENT (partial) DESCHUTES COUNTY, OREGON N I" W N N a O < Z 0 0 14 J r a T < H of za W 7 G Q. x WO a< 0 F- pC W OC N H W= S W I- Q F- a N 0 0. O F J O z =`.' Vi 0 0 < W d 7 = N x W a f- 0 0 O. W IX 0083-0189 U • otai .• M Uf - m 01N M O1 M I. � 01O-.N M 4 UIN IICOMO M NM a U11O V. m 01 C-N N NN m M M M .......... UI MUIN NVIN NNN W OON N a' U! O a' O < N M M 7 U. L C U. 0083-0190 Y • N N N M 1 C Y�C1 • .. O. 7 ▪ V 4 C N E C C IS. Y 4 0 U. • 5 y m 2 M N T p O 0. i Y W C I. W 410.41 (AC a q Z 0541 pp Y 7 C ^ 7 - a C M I- N L C C W -- < C Y Lu Y1 U v < CD a 15.- N 1 i yCO1 C C 7 NZ +41 C.7 CAN C1 C CN CD .. Cl o <MW 40 CCC a 1`C W5?VI C U a a C CC.1 + a N 50 N W UZ- N L N a C C L C a.1 o <C • Z W Ny N1VqI C G 7M O > V O S U .=-.Wj1°.1 1W- «C `aLleQi a >` Cu .e2 U W Cp C L >, 7 • A 7 a C 4 Y 7 C 7 N F• W...0 0 ea NF-V. N U. N Y N > U.S W = U.JC V N4 Y U CM _ C a 6. N C L U. O �• O <7 2/222'2:f. N -.a 15 X q Y .0 Y O /-'7 �+ Y qL UWCL N CC U Y U mm O >+Y7Y I YO.0 C lm LI- Y 71- Y [O C U Oy1 p I. 0. U. 0. ..>„- Y C Y p N 111 U. p et N N ZY W `a X X41 XI-IL a.- CCCy C C > 7 0. 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CW)Y 44 0 L N r E CO 1K Z /- O 0 0 �/ W W ..0 r) OL J Z C1 0 7 C O 0 VI m= C L i+ pO L ie N al VI s- = 0 W --7i W. 4) C . `.4 H ZZJ 0 0 00 Z W = d O v 0 .- t _ W. U. I- 0 N N N C V V d .Z.ZW vs y 0 U CO = w W 0 N ce L Y u p1 I- W W 0 L O ` L C 0 I- CO 7. 0 Y _ N 7 N 7 4- 4- ♦A. L >1L U Z S 0 0 • 0 L) J 0 r C V 0 • M 0 I- 6 MC N N C - A. N >t 0 0 >1 d H N IL N 1 L C .7.. M C 41 C X 0 L U 0 0 0 0 ' 7 C 0 0 0 U 0 N M 0 F1 0 001 4 0 W N r 0 0 C L V •co N N 4- U L C' 0 • .Z.. w 0 L " C OE N w C Y- L U L. L L r.. > C ... t 0 I. L Y N 0 0 > L >1 W 417 1. 0 0 0 00 C 0 I- E. A. ~ 7 4- 4 t V O G0• a+ 0 0 �+2 X ON N �+ N O1 V. V O.0 C L C C I- > > V O >s 0 V N C C 0 at 0 C L M 0 0 0 0 0 0 0 w 0 N C 0 0 N U 0 0 O.0 V- E O1NC 23 r. 0.- N 0 0)L L •-- on I. N M G N • O L N ..... .O 0 O. 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M 1.4 M f V PS N0 N N CM NN N 10 in 011.. 01 b 01.I ..• 0. n MN .•. 10 N .-•b n 40 CO b ... n Nf N N 10M n f - 100 00 0N~ 01.Na00 M0 CV co f 01 el .f-• 10 N 0 0 M 10 N ▪ • ` v 0 M n In 01 01 01 M Os 01 01 M N ID Co M f O M CV n 01 01 M O M CO M O Os N CO � M fq)b • •It 1001 • Of .+MOO101 Cis 10 • 0 ^G4400110 CA 0.1 .b In 02. s• no h 1fN ^ A M rN 0 1 N N f N� ..1M f.1 N a0 M O 0 I 0 0 n n 0 Al • 1M0 001 001 701 • 031 f f f PS 40 10 0 ID N N b 10 10 01 01 n n ti 05 N N M M .••• 10 MOO MO b N 01 01 M .•1 N 01N M14 N N M .,.. 10 ..• v f .+ b f f 010 f O O i•.b ON.- ONN010b b .- •.+01MM1NNO N 0/ 0f ^001001 f - b b f b N N 10 N 0 0f N •1 N N.1 f^ 0f 1 O /0 .M N r .••f 1`.. 844,365 50,400 N RI C a N 41 • CO 4, U II V 0 • 14 C • N U Cr 42L N a N 4.1 U 0 u C 41.04 CC1� N N al N r 0. r 42 L 3 > Cv "3 q C^ C K C 7 al DN N 41 C 0 41 42 ^ 0 44 a1 CO 7 r C r r q N^ 42 C d V 0..- L^ Y 4) .c q} E 5 N U us h0- r- q+u -Y.- ra/1`L 7 q N Y^ 4- ^ 0 r 7 41 O 4 C 0 r 0 0 1- W 7 Y O'r L 0al ;UZ L.NOI -Y.OW Ndq III C. OC 0 operating expenses Operating income (loss) income (expense) transfers out 01 C r 41 C Y N r L L 42 0 N 4) 0 I C 0 0 C ^ 258.252 (49,638) 208,614 V C N q L. Y r 42 Y 42 01 3 T 7 ✓ o 3 L • 01 RI U u aqi L .0 C 42 >I 42 v O. C 1► O .2+ N C N 0 1 .. N 0.4- Os C y N C Of C V 0 N 0 Y C C 0 v L a L ^ N O. 42 I q 1 42 k IS 0 IS Iry U W V r C U r C U 42 •••• 42•. 41 Y a• 41 42 g )V 'Yv 0083-0196 Y 0. O▪ . L N 0141 M ar g C 42 4.1 I N 42 41 N U C 1 aI 1 Cs 2 w C V 1 t 1 1 UU U?►.97 V L > d • p V r. V L L y N ° `•O•f CY L� 10 ° C41C 03Lpw O•• 0Lc %.7.4-.2t 00 4144 8-27 .V ~� V 3 C` '7 4a* V °I Cr 0041 fNl�LO N^ L ° v.. O Ln 4.0 ,4 p L ,r r • N 41 q C 0 U L V �. 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W7 ..4 ^EO J J ^L 0 8-V V 41 V V 0 0 41 8- CT d N d 41 d } d • • 00C 41LE 41 LLaLO Cu LyN .CT} V c 44 36 C C NO 7N 41 OpIV NV N 0 C L M 7 C p 3 O. • q u o U 6.I V C C Q C V • 8- w U N F• In C w C 1 V ° q 0~ 2G N 01 °I c ^ o L y 4/ ^O d V V ^ E N Cr w L wLa+ MF VLN L L C U J > > N w _ pC L. L.A V g L o C N 41 8-8- E O N p N ° 0 T L x 0 C g U . c E d O N d° ' L • V q V 0 41 0 S. o V 0 U � L u T C 0' 0 u o L O G u w 0 $ K " WEw 8- _^L 41 41 N T Ct 4' . 0 44, N L C C N 0 C = 0 N M 8-L p U >> 'n r li V C C T 1. g p p u � L L CL 4 0 0 0. p •0 L w 0 C 0 w 0 C N N C C p 0 C E F• L MI L O 4 L C q 141 E C 0 •. .•. S L. Z O N .. N • w V 00 0 l V' w u V L U v u N a'^ 8- .•. ~ C N N L Z y Y Oq L IV p _ w �� " O N FI E C p N M u L. gV O 8- an 0 I- C7 44 •'w q $V C O C U 0 .r N41 LC I M L y V V L C N C O N g^ C N V 0 ' • K J O L °gip r O .CO KI OD ' L V U 0 • U O. O N U y 4.1 ^ G - ' .0 0 V T O M Y Z •-■ d 0 V L^ O 0 7 q M y 0 • 0 G 0 r 4' N C •• q it O 4C N p d v N .. O N = q 2S as .+o g y e 0 4.4 � O C O MO1 V 1yY4.1 N �cq� V O p d anNE u nw c T p • CL C3 41 ; V wC O U N0CI^ D V ~0O j 4.1 q W W L / 8- 0 C 1. 0 w>IC T 10 0 C 31 q ^ t ELE L E O C Ut 00 0 r.w w .+0 I- .00.4.. L OD V M L « N T C p Q U L C • V ^C 8- ^ V 41 E N FI 4 w N U N 8-7 s s w N L 41 4-. O 0Y Lp C L L C•^ .0 ,a •• O CC E8- E qid & V C V > w C 0 V N C ....Q wi. L VI k,.........- M r C p N 8-OV L A N Id LI G N O N C V) 114 >� V ~ NG °I.r • L NYN i ^ ~ y _C 2...o N W /E 0 NV p 8- Y • v 0 C T0 O p 1 7 �0 C _ T L V O V 0 0 L N V V 4. L W 0 M N O O 9 L / 7 H L • O. 0 0' • C V 0 C N V0 N O C d _ _0 O V N N V q 0 N L L~ w 288- 0 •• Py O - ' C C O 1. 01 L �+ v Q 00 C 7 O. C 0 F• > VI w L0 en U M . m Nr C ~ > N M >1 F• L L OV i +L uC N q 0^ 8- N q d L T /I"4+ Tyuuv OC IL C ,. w °V v Q w 0 C i C w 0 V C L ,4I 4• L w .•. F/ w 8- . q> 4., I 0 L N O •I U C c s O V E V u C 7 y G W 0 G E 9 ~L7 N v Al O C . o V N M C 0 „, 4 ea; L E Iq Y Y N q 0 0 C w0 0L6° r NpI C 1 AT r O C 0T 0. LE C T C VM . " > ^ V M 0 0 V V 41 0 0 LM 0 M 0 F• V 1 O C U. O p N O r N FI 44 F• N 0 N> U F• U M d 0 1 3 L .c r 0 9 C L C V 3 7 .a N ~ 0. C ` .o 3 V C C U OI 0 0 V L LL L L m c V fI Y N 0 U L L V1 M U N V >Y 0 0 0 0 0.0 0 0 w^ L O w LUCK L00 cu L0L C La 0 CL .C50. .0 d.yy Oy V d 0` N N VI N` N L> q 0 Z m I- 8- 44 0 1- 8- L- 1- w 5- V 0 r 0 F O V 0 O 43.0 C V C N C 1- L 0. 1.• yy 0 L 0 C Y 0 • v N z W W H zc.1 W z• CC 0 L. • O > W Z - CO IO 0 O SOD V OV 01 W- OI O S I/7 en Oz 9 9 c U z W z W H H .■, sc '41 O W -O Y W F. z- O =m= CAD 1•••• 1- ° O N FW C Lll C. pz Note 1 - Summary of Significant Accounting Policies - (Continued) Note 3 - Property Taxes Receivable Budget Policy Ni q- Td d Cd 4) V. d >>w d 0 q a i 9 0. . >,. M 0 M 41 N C 1- p •• •.1 q 1- 0 i d 0 r v C - v j v 9 4-0 . O • 1 g..- . 0 o alN O u d • t p� L • N d d C 4• 41 C 3 0 . a 1 a d C ° d 0 X O00 C d^ ~11- i 1 g g .9 q d • a .N d N M > M g E O N d o y- �= G 2 e41 N Y N Mr a C V v o d 4, O - .. I c s >,n d q V ^ d q d .1 2.. .1 d L L II N ..w L L 4' Y d O. C 4 1 L c - p q al >. >. a OC - d . - aL ° O L 0 a L 20 ., N C Q q « 0. i., O d Ire 41 N IC W p = d . Ci - Ny N N Y L >.~L N N y C T IO CN q 4C N d O 0 -) d . pa, E= v O q OY. �d gy q dN d"dd N V° OL N L L .0 >I 4. 9 L - va, v - NV L C L q> 0 q q N A y O. §N d ec, `. 1 - 0 If. L. 44 y A ` . Lp " 0 0 �O 0 L L d t.. 0 dd L. in C 0 O �d q d $ X . 7 .+ d N v E N q vd E'°°a_c �'" L as 4,1 OU v 7L >. 0 d . 0d 10...44 'n d NT q - . a d N a g L E 44 0 0 „ Y Y O G pL .", O a #+ r q d d N O 4 Q vow .- 0 .0 41 041 41 4 L N L d O Z - 0 4I - as d L c v 4c, . 4,.- Y 41 q N U q C •' d v ^ T L V 0 y T Us in 44 44 N d N° d d v V a n C vv L Y -E U g L 'n u d d Q Y NL O ' a Y d Y 40 d VI 4- q 444 O >> d .. ° V GL 11 _ O • > d4. 2L,L•4110 d M d V - d N T 2 d C .• X X X 41 p. p d d Y d d L L C d 14 I La 00 M q - 0L O.- a v 0.>. v >.2 *11 7 N •- 0 004- MM C 0 E '^ 4 44 0 C- C O d 0 o d .0 y .0 0 q- L C 0 C L 0 C 0 O C 0 V 9- 1- UN. -dM 44. 2C 7 .4.4 f..) OC.) r. 0 Z .Ir 41 C M -I.- -d . all CI Y° C 00 41 ` a 44 C ,111 d. d >.VI N 94144.....1410 • O. q q O Y L d O 4400 E >V u • "1 di v q N • N v 0. d y N. v N C = l C d 41 q a C v N = p .-1-C w w 0 . a u O .....7.0 � 41 L ^ d M E - E C 41 .0 d° L i d 9- N q q O. 01 V NO. _ E d - r 11; 01 L a.. - > E d N s C O O a - p V q L9 >. -d NO. a. us �0.oavL ,cve .2 • u O d N N V -I•. - C r 0 0 L CV r. . yv d C dw -041 - C4/... 0 4- VVvs4, M -y N LL_iq d 17.42 so *a7Lc 4.,oa2LN a ° pE - g p y 0 L O LM re O yv d ,Fi.., d yp d d L • N L E^ a Y N u C L L O M 7 q 111 •1 X O ,T,4"2 1- O `a L00 d an i 1-7 pC 1 udq 01� OL jg p= N . C q N 41 6_ M L N Y� d i V O 0 G C,r q L L I.• X a O ° N '•' ° a N d0Y y.d O. 1 Ny 4• W 0 L 0... 9006:0Z !4' - . 0 L2 . N P M. O - 0. 0 l 10° LO O0 p d° m O 0 w L N L O. L. y M d q 4YLM CI. cV0- dM1. d -q L a. 0 0 0 4 ` y 01 41 v d G 9 a .. �� ; e�x0. V C d - M 0 v C` N • .. y y O >._r L C E O. 41) d E °) 0- 41 L N. 4. C/ _ N d 0 II- t . i q -M al 44 010. 44. C L dY 04 O0 12.v. 4141 .0 9000 00 99 I- q.- Y V.c E O N q E N >. The County budgets its funds on the modified accrual basis of accounting. Vacation and Sick Pay Note 2 - Cash and Investments Cash and investments were comprised of the following at June 30, 1986: Note 5 - Special Assessments Receivable d O L L y •' • q Nv r O C u 0 L q • U M 0 • • 0 VP . L L N V N O d C 41 Y W O C 44).' Y - ` N L'- 7 N N d L 0 N O 9 C N L- O .0.0.041 O VA In a0 ,s. O co CO 1-1 at m CON f•1 ID 01 1.1 N O O - CO N in al 0 N C. u certificates 0 d N O. .0 C N N- C- L.*. 44 O q 05. d C 0 L . 00 41 p ` y4/ C 4/d N 0 L FI MI L. d C E dN- d41 0 0 0 41 N N N C .000040 t - C C d d Yp 0- C M v L d .0 t 0= 44 3 42. 9 L. N N E d 1.7 U H L 0083 -0198 RP 0 C ° 0 CO II/1 OI 0 O 0. .fir O .. O O N 0 Xf ♦ to N .0 1•'1 . - N N 1 " "2 M M M N 4. O f 9.451.356 Assessment lien receivable Road improvement Sanitary improvement Special assessment bonds payable Road improvement Sanitary improvement C 0. M W d 0. q T.; N q u 0 N N N q .0 C C 0 W N H O Z oC LU W CC .- O I. .0 4 - W 1 . Z CO CO 0 uO. N La °o 2 VI M NH C W O O O Z 7 .0 0 7 r Y 0 1/1 S 4 N J Z v cO W o 14 .0 >• W DC .Z-. o4m U 0 � W 0 • F-►-0 =vs My N H C sAi O Z7 Note 7 - Bonds Payable - (Continued). Note 6 - Property, Plant, and Equipment d -- 4/ .0 f 0 N Y CO +- L 01 0 d N U1 O .� d > In N U1 O .Ip.C. CO 10 N q Y O CO •. I. y1 ~ d T - 0 U1 f U1 w L. 4/ t M N N O m d Y r Y v = p q Y C N d 0 1n M ... NU1 O U N U CO b CV � �V O O r the General tot q O r as Future maturities of bond principal and interest are General Obligation Bonds Issue October 1. 1978: 4.1 0 0 0 O 000 O C U In In 0 0 0 mT ff 2 N L d w w 01 C O g M W L q "7 I- CI N w 10 m 01 N .0 C 4/ Y 0 b CO Y_' U 01 m0 N C q 4/ Y ! L b 1 n 10 N X > C L Y 10 4 CO L ° .4.110 N q ' m 4/ 0' 01 Y d • N= 10 001 0 N N Cg E b�N p W ..In .. N N O'r L 4/4/ 10 10.. 0 L 01 IC 0* 01fN C d Cd U. •X N (Si - G7 ti • _40 V► W Y q - q C 0. 2 L q L lD N 4. Y d u °� 7 .. 0 p I q =01 7 0.0 pN lCEo G C N 41 d d N +l C 6 Y Y C Y Q C 41 .C. N • 0 4/ .• N 11.E Y N 7 0 N gg Y 7 • N i C O .[ 42 3/ 4/ 4/>1 0v • O. 7,r u O. d v pr > . E - qC E O 007 +• 6 J W S 0 1. 0001 OD CO O. 01 O n ti 44 Balance June 30, 1986 S 16.614.796 S 379,553 Note 7 - Bonds Payable Bancroft Improvement Bonds, County Road Issue October 1, 1981: 41010000 m .. f 1. U10 hel m 011V q U101 001.'•f Y bb 1. b1. 1. 1°o NNN NNN Ny 4/ C M CO O^ in 2M 401 NM NO m b f •f■ M.. N • N b 44 b N f N m 0 000000 00$0. 0 0ri9 g' n In inl0o C 0 o O0. .f-1.1p�NN CV .4.1 L G M N C M g L m 01 O .+ CO m CO 03 0101 01 010101010101 Improvement Bonds, County Road Issue, October 1, 1984: Y L C *0 I0 .. 0 In 4 O. M 40 h1010 b U1 N Uf f M 0. 4-• C0 m1. mm10 r M uN C M 01 .y in CO 01 M f 1. 10 b IOU) N Ulf M OAf 010N f 10 1010 (Si U1 M 0 0 0 0 0 0. 000000 O0 1n U1 0 In 0 = ul 03 O. N C .0 1'', C C L q "! T 1. *0 O1 O .+ Ob1 CO m CO 0101 s 01 0101 0101 N g 4/ vs L 4/ C d L d qY vN L L OCd 0 Nw O N 4/ 0 00 0 0 0 ..- 424 4/ 8Cu L OO1. O 0 0 '0 V d L E so L d q N O ° 0U, C N.r r L N.. O >7 b01N M M 4/ . 0'V N y __ Y O Y 41 N > d L C O N I. 41 .r • .0 0 N 0 0 0 0 IT C 00 0 00 0 X C L y 2 E L 4/ i. L V r d 0 0 0 O V F 4/ U 17 O f M r. p17i �1 C CI N U1 01N N 4/ N` O N` 3 O. d • OC U pN Y `r 12 IN11 N .... • N N t N M p42 j Nv q 2 g c . Y 0 CS CO 0 °v O •Y LV O O 8 4.1 ° L O w _ q 0 0 Y IS Y C 7 f N - .r m f . (0 yy r .. Y 4/ 0 p 0 L E y ` M O M 0 q y O N L Y I d � V N d I. q L A U C C 1 ID CC � Op d 0 M CT W - O N YY^ N CD n M 44 CO n H N 8 M A 0 I.% .. .. ... 0083-0199 g g o 8 q o a 0 ou y O N 3 • L b �N ° U N r' N Y N CO- 1. Yy u N D+ 0 Ucoa 4/ y O p1 L uY q � r., o CO, 0. Y in 'r 4. IV 01 M ° 0I- 4/ L 7 " \ G C E d 4/ Y Y d N 1St:, = L 4/ 0 a 0 7 ~• N L l q 0' q T "7 I Y 4/ p T Y C 1 N N+E• 6 N2^ O •• 1 0�1 14/.. t q 0I v g Y_ Y C m 4/ M"�1 Mr� N C m 0- Lj p..' �� l pC U L L q Y >1, � q N N U M •~ •~ X • L 4/ • 4- C 10/ • O O • ow 1.4 N N g N L 0 d; 0 m CO 1� 0 .r >• 4 03 N 0.4- - "7 m m 01 Bonds payable - June 30, 0083-0200 v 4 4 4 1 . . ' 6 . 0 1 0 44 • • N N L L VC N yy O N C O ^^ V.. r N • L V T L V • w V N ♦I VI 0 7^ N C 44 L N q w L V 10 111 If 0 40 C L N r V O C+ V C 44 44 L 44 Q ,. q 1..7 w •.1 N O I N w O C C 7 C Lq Tq V C L V YV � N 7 C a L,0 �� G o N Q N c c a. C N L O o �V7 0 Q N 7 7 T N V C C G 7 tJ .^_ _ Y7 7 C °^ T L C N L 7 V qr j U p QY .0 N V q N V gV N 0^ T N EE p j U N U ^ X C v d O& ^ C q^'• -ANY C^ N LE 12 7Ca wOC Y.r y+-% N N0 C O • d C V L L T� q u U= OL � •.N Npd N ^ V N } > 1. el. N a � o C N �. 0. ^ 7 �C N L L • Y Y O O C L E L 7 01 L V w 0 • V L L VI G 1 C A Ou ygVa >1D ° c N ^ L 1fl U V ! W C .. N > = d y V 7 d 44 d O LO I►.g V° QV C V dN q 0 Cd V • L O N^ 0 NV G Cf. N �' + n U L/ C N g ON 12 0 O Q C r w 0 V O vi q j Y a NN N r =I- N N g L�C Or C �V °OO O ^N N 0I=1- 7C WC mUH w7 O TC T' q CL qOVC 0 X q O. 0 V j V - 7 V w C -O •' _ N°`L00�NT ^ ^ O V v C V 7 V 7 M yy L E N � N • N V CwQ NL IrO qqN L O N q 6LA gg tV = wO dL ♦ C7 V 0V w .0 7Nq N O • •L } 44 L •L VVN U G i �C w y7 0 C Y g 1- q =o V^ N N Y C q +$ p q L O O N ` L a •L T G ~C�NU4 i W� , ` N t AO� Ls 0. V N M N 1 OO Y 7 V L Y } - L U 4 O L e q qC L N N V V L T �N CV g U CI w T a, w C w „„a. w V C a� 9 ^esa moel a Qo•- 0 a 20 - in LL :,=Cg =o .o = g Y Y^ z w• OW I!YV`py p dL N t7 C q I7 V C C offq,r v ie.- 6 o L C = p w. W V N N N p N . C 7 d C Tv } s 0M 3. i ^ny q C ' 6 C NNt d t dg ddO a � Q F' V CV0GN Vr s d7 OIO VLd qq • N _ ? N`_ N "7=q 0 .00V wg .,•VI 0 NN ^ L T as O O N V C NVL> 7 V r V y w> V 30 a y N�CT q pOC d Y 6N^v ^ CCv LV Nq Nq .^ OU^ 6 r • pC 2.44...0m le 0 E C C_ O 7 >16 0 > TV N Y V 1L 1F ' OJf 0 W401,0= N w 1. d 0 O q a V q y 0 N N w.0 W= n w N 0 N ^ w Ll V w V^ 7 MU ¢ C 1 L C € E 40 Q L 0 N n N N T V W ' e V O ^ N N N O Cg LL N C V N V N = V q in 4. 0 N 7 C C 2 .". V 7 O O N p C 0 0 L1 V w w d 1II N �0 V E L Cw NL C V^ 7 or N i V = wN00 w00T O .0,-04. LC O L TLV tL T q E ..- >.0 E1./ C T E E es al L 0~ N V V a Y .- Y 0 O M N q • Z 'LaV Nq L. r ^N CNX0 wYd V w.CL ^V N U0EN CO as 0. 4 °Ew OV "V qu d N V �N1d OD N %. i N•. T N N ' E QN L C N j L II-L^ L L �L O =r G NpV 0, O. 1.1 N V V V V r a N C O Si 1 T q 0 V 0 ,_1 V d Y V =wN CC Q4 CNNq as _C / NC4 210 C WO • I E E N710 • 1 CC w.,4.• 7w TC V cO 7"Nr _ v 0NN _.cc 2^ r y L L L Y pL N V H q N N - V z V N C 22t1. 2-a- q M d s d N V - 7 Eq w V 4W C V L V d d N N 0 U N^ Y N V^ Y C ^ U 6 V 40q w Y p d N N V ^ Y g47%=1:47 oils Z O OE E . NCCN NW w = L U^z M N i n tit G V L N L O IL q 1- L L 17� C Z OK 0. 3 CO 4-.044 LVV 0C144 O U C O COL C CO CO CO CO 0 141 ID 00010100 0 7 4-w NL V N 01000 /7 10 O 1111010 n A 0 0 0 0 C1.-4 CO .o 17 Is 10 O. CO Q 0 N O N N .1, 1ti N L N CI N 4 O N 0 10 N CO Ch ,0 sr • q 00/00010 4.- NO... C Y f7 CO MN N n M V M MOM MM N q1•. .0 Y .0 N N °..... Q f7 O Y U 7, q ^ i t 4 N 1- I-. .-1 Q■ N q N N N M pr ^^ WI ... d V ... y Ch 44 O O O O OI10 10 V 0 0 010 10 O O O a q ►. N 010p OM10 N In 10101. nO O dUJ NV '^ CI co clot.. CO 10 VI w ^bf W00 N C g ppOwU ..a NN NP.0 01 ..a .■1 L 111 V ` N .VIY€ w C T 10 10 f f C 10 10 10 7 0.1 m 10 W > 1 N L 44 L 014- N L •+ N r. N Q O V V C . v N q OOOOO S O ACD .- OOOOO 0 p q 7 0 ^ w O L V U a N C O 7 N L 0 Op 00 O .-1 N L C N N N1- V O ; 1. � O C O _ 000000 u! L L q � q p sl• q CLM C1N NYN r 010 , ,1 p c I,Oaa�N N w f0 L L 0 0. N U d N i N W 1 O Y LO N . w U N C 4- 1 0 V C 4-4 c. Y I- w °C cOy wC.Ne z W N14 v • O 1 y48 • CO g N 44 N4- ■ M- N C V p N p 4- L ^ Q 7 O N 0N N - V O L 0 N g Q 0V N VI C 1.) V If. i 21" 0 L q C VI •1q V ^ O y 10 u C V Q ... y C q N dq • is z V 1 0 w ..-co_ al O Z V M 7 7 N N N CO W Z N N U N 2O 5 C N 7 y N q N N L E 7 O W C 0 V < = 4- N 0 w 4+4 ^02 •0 q V V 0 M N C N ^ L U _ ♦ IL N^ N Nd W O C Z •• N p q O U U N q C L 0 i CO C d 0 C V O ti EC r 7 a N c V V p t 4-^^ V N a _V m O • q ^ n ..q.. ^ .- q w 4.) 0 •• q VI .2" V O 0 10 0 M 1 0 w C L C I�OaO N 0 1 _^ ^ Oj^ � LS V = M ^ L CO C Cm W C m N CO O Cl a a N C a a Cl a a a a CO L 4 U W 41 N V C C q' a > q V M 41 C 0 w C Q con W co 7 0 q w .-1 N 0 L 5471. 0 7 C 7 C 0 Z-O Z O I• w Y Z I- a- d ..... 1 t t 1 t 1 0083 -0201 L y. N A +.0 o A C4 P 0 L 1d ` L V N A L >.>. C..... T• >..0 9 X U In 3 o "Li A C O O V 7 L. 1. 111 M 7N Y u 7 L CI O CC pC 1.... d C w VI 0. 9 pL e 2 3 N d 1.1 L O O .0 r N V d A 0 L !EN D O _ .0 C O' N.0 L 0 / N O 0. 0 • 9 x p E M V Oc d c 4 5 O L L B. 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NN ZL6 N0 e., O7 U OI O C N p- U. 0. =.6. N W 1. 1•- 1) 0. 0 L°i 1°) J N 1Ci - 1 1r .. L. m L W L1+ WO U •• N 1 = F- co N L I S h 'p�1 .r i W O ; 0 N 0 Z V Z - 1 I I I I I � I I I I Vt I Vt �% � I Vt 0083 -0?O4 APPENDIX B: DRAFT LEGAL OPINION ABS BUILDING 2-4-18 KUDAN MINAMI CHIYODA- KU Too 102 JAPAN (03) 239-2815 2011 EYE STREET, N. W. WASHINGTON. D. C. 20038 (202) 296.3006 • LINDSAY, HART, NEIL & WEIGLER LAWYERS SUITE 1800 222 S.W. COLUMBIA PORTLAND, OREGON 97201-8618 TELEPHONE (503) 226.1191 TELECOPIER (503) 226-0079 TELEX 494-7032 LEGAL OPINION' Deschutes County, Oregon 1164 N. W. Bond Bend, Oregon 97701 Shearson Lehman Brothers Inc. Foster & Marshall Division 222 S. W. Columbia Street Portland, Oregon 97201 0083--0205 JEFFERSON PLACE 050 N. 9TH, SUITE 400 BOISE, IDAHO 83702 12081 308-8844 345 CALIFORNIA STREET SUITE 2200 SAN FRANCISCO. CALIFORNIA 94104 (4151 984.5858 Re: $250,000 Certificates of Participation Evidencing Proportionate Ownership Interests in an Installment Purchase and Trust Agreement with Deschutes County, Oregon We have acted as bond counsel in connection with the authorization and execution by Deschutes County, Oregon (the "County") of an Installment Purchase and Trust Agreement between the County and (the "Trustee "), which is dated as of , 1987 (the "Agreement "). The Agreement provides for the execution and delivery by the Trustee of Certificates of Participation (the "Certificates ") in the Installment Payments to be made under the Agreement by the County. We have examined the law, a duly certified transcript of proceedings of the County, prepared in part by us, and other documents which we deem necessary to render this opinion. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the official statement or other offering material relating to the Certificates, except to the extent stated in the official statement, and we express no opinion relating thereto, except to the extent stated in the official statement. As to questions of fact material to our opinion, we have relied on the representations of the County contained in the Agreement and in the certified proceedings and other certifications of public officials furnished to us without 1 Legal Opinion Page 2 1 1 1 1 1 1 1 1 1 1 1 1 1 LINDSAY, HART, NEIL & WEIGLER 0U61`0P06 undertaking to verify the same by independent investigation. Based on our examination, we are of the opinion, under existing law, as follows: A. The County is duly created and validly existing as a body corporate and politic and public instrumentality of the State of Oregon with the corporate power to enter into and execute the Agreement and perform the agreements on its part contained therein. B. The Certificates are payable solely from Installment Payments made by the County under the Agreement, from funds deposited with the Trustee for accounts under the Agreement, and from moneys received by the Trustee from foreclosure of the project. C. The rights of the holders of the Certificates and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, and their enforcement may also be subject to the exercise of judicial discretion in the appropriate cases. D. The portion of each Installment Payment made under the Agreement which is designated as interest ( "Interest ") (a) is excluded from gross income for federal income tax purposes and (b) is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, it should be noted that with respect to corporations (as defined for federal income tax purposes), such Interest is taken into account in determining adjusted net book income (adjusted current earnings for taxable years ending after December 31, 1989) for the purpose of computing the alternative minimum tax imposed on such corporations. The opinion set forth in clause (a) above is subject to the condition that the County comply with all requirements of the Internal Revenue Code of 1986 (the "Code ") that must be satisfied subsequent to the execution and delivery by the Trustee of the Certificates in order that Interest be (or continue to be ) excluded from gross income for federal income tax purposes. Failure to comply with certain of such requirements could cause Interest to be so included in gross income retroactive to the date of execution and delivery of the Certificates by the Trustee. The County has covenanted to comply with all such requirements. The Certificates are not "private LINDSAY, HART, NEIL & WEIGLER Legal Opinion Page 3 0083-0207 activity bonds" under Section 141 of the Code. We express no opinion regarding other federal tax consequences arising with respect to the Certificates. E. Interest is exempt from Oregon personal income taxation. F. The Certificates are "qualified tax - exempt obligations" under Section 265(b)(3) of the Code, and, in the case of certain financial institutions under Section 265(b)(5) of the Code, a deduction is allowed for 80 percent of that portion of such financial institutions' interest expense allocable to Interest. Respectfully submitted, LINDSAY, HART, NEIL & WEIGLER Lawyers CWCcwc600