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1987-11032-Resolution No. 87-024 Recorded 6/5/1987BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Providing for the Execution and Delivery of * an Installment Purchase and Trust Agreement in a Principal* Amount of Not More Than Two Hundred and Forty Thousand Dollars, Authorizing the Sale * of Certificates of Partici- pation, and Related Matters. * RESOLUTION NO. 87 -024 „s; 0083-0042 4 BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. Findings. The Board finds: A. It is desirable for the County to acquire the land and building described in the attached Attachment "A" to this resolu- tion (the "Project "), by executing and delivering an Installment Purchase and Trust Agreement in substantially the form attached as Attachment "B" to this resolution (the "Agreement "). B. In the Agreement the County agrees to purchase the Project from the Trustee, and to pay the purchase price in In- stallment Payments, which include principal and interest. The Agreement authorizes the Trustee to issue Certificates of Par- ticipation in the right to receive Installment Payments due from the County under the Agreement. The Certificates will be sold, and proceeds from the sale will be used by the Trustee to acquire the Project. C. It is advantageous to the County to have the Certifi- cates of Participation sold to Shearson Lehman Brothers, Inc., pursuant to a Certificate Purchase Agreement in substantially the form attached as Attachment "C" to this resolution. D. The County has authority to enter into the Agreement and to perform the actions contemplated by the Agreement. Section 2. Authorization of Installment Purchase and Trust Agreement. The purchase price of the Project under the Agreement shall not be more than Two Hundred and Forty Thousand Dollars ($240,000.00). The Board hereby authorizes the Chair of the Board of County Commissioners to establish the purchase price, the amount, term and interest rate of the Installment Payments, and all other terms of the Agreement, and to execute and deliver the Agreement on behalf of the County in substantially the form attached hereto as Attachment "B" to this resolution, with such changes as may be approved by the executing officer. 1 - RESOLUTION NO. 87 -024 0083 -0043 Section 3. Authorization of Certificate-Purchase Agreement and Other Documents. The Board hereby authorizes the Chair to establish the price at which the Certificates will be sold, and all other terms of the Certificate Purchase Agreement, and to execute and deliver the Certificate Purchase Agreement, in sub- stantially the attached form but with such changes as the execut- ing officer may approve, and any other documents necessary to consummate the transactions contemplated by the Agreement. Section 4. Approval and Distribution of Official Statement. The Board hereby authorizes the Chair to approve, on behalf of the County, the final Official Statement for the Certificates, and to authorize the distribution of preliminary and final Offi- cial Statements to prospective purchasers of Certificates. Section 5. Other Action. The Chair is hereby authorized to take any other action necessary to acquire the Project and sell the Certificates as contemplated by the Agreement. DATED this day of /X L_ , 1987. ATTEST: ce Jeaz-a/.e,_ Recording Secretary 2 - RESOLUTION NO. 87 -024 BOARD OF COUNTY COMMISSIONERS 0 • •CHUT S COUNTY O•EGON r71. LOTS B PRANTE, Chair missioner i CK MAUDLI , Commissioner ATTACHMENT "A" 0083 -0044 BEND HARDWARE SITE COMPOSITE LEGAL DESCRIPTION Beginning at a point on the east line of and North 0 14'22" West 238.00 feet from the southeast corner of the northwest quarter of the northeast quarter of Section 32 in Township 17 South and Range 12 East of the Willamette Meridian in Deschutes, County Oregon; said point being the northeast corner of that parcel of land described in Volume 58 Page 112 of the Deschutes County Deed Records; and running thence North 0 14'22" West along the east line of said NW 1/4 NE 1/4 a distance of 199.70 feet to a 5/8" iron rod which is East of a point on the easterly right -of -way of Wall Street, said point being North 38 33'05" East 559.98 feet along said easterly right -of -way from the south line of said NW 1/4 NE 1/4 per that deed recorded in Book 16 Page 324 of said County Records; thence West 5.94 feet to a 5/8" iron rod on the easterly right -of -way of Wall Street; thence South 38 33'05" West 255.49 feet to the northwest corner of that parcel of land described in Volume 58 Page 112; thence South 38 33'05" West 13.88 feet to the southwest corner of said parcel; thence leaving said right -of -way South 86 11'10" East 32.00 feet to the angle point in the South boundary of said parcel; thence North 89 57'41" East 142.78 feet to the east line of said NW 1/4 NE 1/4 and the southeast corner of said parcel; thence North 0 14'22" West 13.00 feet to the point of beginning. Contains 19358 square feet. David K. Bateman LS 1068 1),WID E\'ANS ANI)ASS()CIAI'ES, INC. Emtt LLRS st R\ EYORS, PL\ \\ERS. LANDSCAPE \RCtIITL( OELICES I\ OREGON. \\ 1sIlINGTO\ :1 \I) C.\I.IEOR \l.1 \ \ \. \CALL STREET, SHIT Ill? BEND, OREGON 9-01-2 -12 (505) 35)-1 4 April 10, 1987 0083 -0045 ATTACHMENT "B" INSTALLMENT PURCHASE AND TRUST AGREEMENT by and between DESCHUTES COUNTY, OREGON, Lessee and THE OREGON BANK Trustee Dated as of June 1, 1987 • TABLE OF CONTENTS 0083 -0046 Page(s) ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION Section 1.01. Definitions 2 Section 1.02. Rules of Construction 3 ARTICLE II INSTALLMENT PURCHASE Section 2.01. Agreement to Purchase Project and Pay Purchase Price in Installments 5 Section 2.02. Security Interest 6 Section 2.03. Title 6 Section 2.04. Default and Trustee's Remedies 6 Section 2.05. Assignment and Leasing 8 Section 2.06. Possession 8 Section 2.07. Modifications of the Project 9 Section 2.08. Security for the Certificates 9 Section 2.09. Nonappropriation of Funds 10 Section 2.10. Use of Reserve 10 ARTICLE III CERTIFICATES: TERMS AND PROVISIONS PREPAYMENT OF CERTIFICATES Section 3.01. Preparation of Certificates 11 Section 3.02. Form; Payment 11 Section 3.03. Date of Certificate 11 Section 3.04. Authentication 11 RDRdkt275 /35 0083-0047 Section 3.05. Transfer of Certificates 11 ARTICLE IV ESTABLISHMENT AND ADMINISTRATION OF TRUST ACCOUNTS Section 4.01 Establishment and Funding of Accounts 14 Section 4.02. Administration of Installment Payment Account 14 Section 4.03. Administration of Proceeds Account 15 Section 4.04. Administration of Reserve Account 15 Section 4.05. Deposit and Investment of Monies in Trust Accounts 15 ARTICLE V REPRESENTATIONS AND COVENANTS Section 5.01. County to Perform 17 Section 5.02. Notice of Non - Payment 17 Section 5.03. No Obligation by the County to Owners 17 Section 5.04. No Obligation with Respect to Performance by Trustee 17 Section 5.05. Tax Covenant 17 Section 5.06. Covenant to Authorize 18 Section 5.07. Additional Obligations Secured by the Project 18 Section 5.08. Taxes 18 Section 5.09. County Representations 19 Section 5.10. Insurance 19 Section 5.11. Maintenance and Repair 20 Section 5.12. Conditions Precedent Satisfied 20 RDRdkt275 /36 0083 -0048 ARTICLE VI THE TRUSTEE Section 6.01. Acceptance of Appointment 21 Section 6.02. Removal and Resignation 21 Section 6.03. Compensation to the Trustee 21 Section 6.04. Protection to the Trustee 21 Section 6.05. No Liability to Owners for Payment 23 Section 6.06. Investments 23 Section 6.07. County Indemnification of the Trustee 23 ARTICLE VII DEFEASANCE Section 7.01. Conditions for Defeasance 24 Section 7.02. Conveyance Upon Defeasance 24 ARTICLE VIII AMENDMENT: ADMINISTRATIVE PROVISIONS Section 8.01. Amendment 25 Section 8.02. Recording and Filing 25 Section 8.03. Trustee to Keep Records 25 Section 8.04. Notices 25 Section 8.05. Oregon Law 26 Section 8.06. Severability 26 Section 8.07. Binding on Successors 26 Section 8.08. Headings 26 Section 8.09. Execution in Counterparts 26 EXHIBIT A RDRdkt275 /37 0083 -0049 EXHIBIT B EXHIBIT C ASSIGNMENT RDRdkt275 /38 0083-0050 INSTALLMENT PURCHASE AND TRUST AGREEMENT THIS INSTALLMENT PURCHASE AND TRUST AGREEMENT is executed as of , 1987 (the "Agreement "), by and between DESCHUTES COUNTY, OREGON, as Purchaser (the "County ") and The Oregon Bank as trustee (the "Trustee "). The County and the Trustee agree as follows: Page 1 - Installment Purchase and Trust Agreement ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION 0083 -0051 Section 1.01. Definitions. The following terms shall have the meanings given to them in this section, unless the context clearly requires a different interpretation. (a) Agreement. The term "Agreement" means this Installment Purchase and Trust Agreement. (b) Authorized Officer. The term "Authorized Officer" means the Chairman of the Board of Commissioners of the County, or anyone designated by the Board of Commissioners to serve as an Authorized Officer hereunder. (c) Certificate. The term "Certificate" means a certificate of participation prepared and delivered by the Trustee pursuant to Article III of this Agreement. (d) Closing. The term "Closing" shall mean the delivery of the Certificates in exchange for the deposits specified in Section 4.01(b) hereof, and the date on which such exchange occurs. (e) Government Obligations. The term "Government Obligations" means direct obligations of the United States Government or obligations unconditionally guaranteed by the United States Government. (f) Installment Payments. The term "Installment Payments" means the combined payments of principal and interest which the County is obligated to pay pursuant to Section 2.01(a) hereof, and which are described in Exhibit B. (g) Outstanding. The term "Outstanding" when used with reference to the Certificate and as of any particular date means any Certificate theretofore delivered except: (a) any Certificate cancelled by the Trustee at or before said date, (b) any Certificate in lieu of or in substitution for which another Certificate shall have been delivered pursuant to this Agreement, and (c) any Certificate for which all amounts due have either been mailed to the Owner or deposited into a special trust account for the Owner. (h) Owner. The term "Owner" or "Certificate Owner" or any similar term, when used with respect to a Certificate, means the registered Owner of any Outstanding Certificate as indicated in the Certificate Register maintained by the Trustee. Page 2 - Installment Purchase and Trust Agreement 0083 -0052 (i) Payment Dates. The term "Payment Dates" refers do the dates on which Installment Payments are due, as indicated in the attached Exhibit B. (j) Permitted Investments. The term "Permitted Investments" means, to the extent not prohibited by applicable law: (i) Government Obligations; (ii) Certificates of deposit issued by a nationally or state - chartered bank or savings and loan association, to the extent that the principal amount does not exceed available FSLIC or FDIC insurance; and (iii) Repurchase agreements with a bank having a net worth of at least $50,000,000, which are collateralized by Government Obligations, if the collateral is held by the Trustee. (k) Principal Office. The term "Principal Office," when used with respect to the Trustee, means the principal office of the Trustee situated in Portland, Oregon, at which the Trustee conducts its corporate trust business. (1) Project. The term "Project" means the real and personal property described in the attached Exhibit A. (m) Purchase Price. The term Purchase Price means the sum of $240,000, which is the price to be paid by the County to purchase the Project, pursuant to this Agreement. (n) Record Date. The term "Record Date" means the fifteenth day of the month preceding a Payment Date. (o) Required Reserve. The term "Required Debt Service Reserve" means an amount equal to the lesser of the maximum annual debt service on the Bonds determined as of the date of issuance of the Bonds, or ten percent of the original principal amount of all issues of Bonds which have Bonds outstanding. (p) Trustee. The term "Trustee" means The Oregon Bank, Portland, Oregon, as Trustee under this Agreement, and its successors. Section 1.02. Rules of Construction. Words of the masculine and feminine genders shall be deemed and construed to include the neuter gender. Unless the context otherwise indicates, the singular number shall include the plural number and vice versa, and words importing persons shall include corporations and associations, including public bodies, as well as natural persons. Page 3 - Installment Purchase and Trust Agreement 0083-0053 The terms "hereby," hereto," "herein," "hereunder" and any similar terms, as used in this Agreement, refer to this Agreement. Page 4 - Installment Purchase and Trust Agreement 0083-0054 ARTICLE II INSTALLMENT PURCHASE Section 2.01. Agreement to Purchase Project and Pay Purchase Price in Installments. (a) Payment of Purchase Price. The Trustee agrees to sell the Project to the County and the County agrees to purchase the Project from Trustee, for a price of $240,000, payable in installments, with interest, as provided herein. The principal installments of the Purchase Price shall be paid in the amounts and on the dates shown in Exhibit B, Each unpaid principal installment shall bear interest at the rate indicated in Exhibit B, Interest shall be paid semi - annually on the dates shown in Exhibit B, These payments of principal and interest are referred to herein as the "Installment Payments." The County shall pay the Installment Payments on the dates shown in Exhibit B, without notice or demand, unless otherwise expressly provided herein, The obligation to make Installment Payments shall not be reduced because of damage, destruction, or deterioration of the Project. (b) Transfers to Trustee. 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 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 15 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. Not later than February 1 of each year, the Trustee shall notify the County of the amount which must be transferred to the Trustee pursuant to this Section. Notwithstanding such notification the County shall render sufficient immediately available funds to the Trustee by each Payment Date so that there will be an amount equal to the Installment Payment then due available in the Installment Payment Account on each Payment Date. (c) Prepayment. (i) Principal may be prepaid by the County, in whole or in part, in amounts of $5,000 or integral Page 5 - Installment Purchase and Trust Agreement 0083-0055 multiples thereof, upon thirty days prior written notice to the Trustee, on the following dates and at the following prices (expressed as a percentage of the principal amount prepaid): Date Percentage June 1 and December 1, 1995 101% June 1 and any interest payment date thereafter 100% (ii) Principal shall be prepaid, without prepayment penalty, on the date and to the extent that insurance proceeds are to be used to prepay principal pursuant to Section 5.10 hereof. (iii) All principal shall be prepaid, without prepayment penalty, if the Trustee declares the unpaid principal balance immediately due and payable pursuant to Section 2.04(b)(i) hereof. (iv) All principal prepayments shall be credited against the principal installments shown in Exhibit B in inverse chronological order of the dates on which they are due. Section 2.02. Security Interest. This Agreement shall constitute a security agreement in all fixtures and personal property which are part of the Project for the sums due hereunder. The Trustee may file Uniform Commercial Code Financing Statements reflecting that interest. Section 2.03. Title. The County has caused marketable title to the Project to be conveyed to the Trustee. Title to the Project shall remain in the Trustee until the purchase price has been paid in accordance with this Agreement. Upon the County's timely payment of all Installment Payments and the compliance with all other terms and conditions of this Agreement, the Trustee shall convey all its interest in the Project to the County by special warranty deed, free of all encumbrances created by the Trustee without the consent of the County. The Trustee does not, and shall not be required to make any representations regarding the condition of the Project and the County agrees to accept the Project in "as is" condition. Section 2.04. Default and Trustee's Remedies. (a) The occurrence of one or more of the following events shall constitute an Event of Default, whether occurring voluntarily or involuntarily, by operation of law or pursuant to any order of any court or governmental agency: Page 6 - Installment Purchase and Trust Agreement 0083 -0056 (i) The County's failure to make any Installment Payment by the applicable Payment Date; (ii) The County's failure to make any payment required by Section 2.01(b) prior to August 15 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 acquiescense, a trustee or receiver is appointed for the County or a substantial part of its property and is not discharged within sixty (60) 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 the conditions described in Section 2.10 are satisfied by September 1 of that year. (b) Upon the occurrence of any Event of Default specified herein, 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 hereunder, moneys appropriated by the County for payments due hereunder and moneys realized from the Page 7 - Installment Purchase and Trust Agreement 0083-005'1 exercise of remedies listed in subsections (b)(ii) and ( b)(iii) of this section; (ii) Judicially foreclose the lien of this Agreement against the Project, in the same manner as mortgages are foreclosed; (iii) Exercise its rights as a secured party under the Uniform Commercial Code; and /or (iv) Pursue and exercise any other remedy available at law or in equity. (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. (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 rescission and abandonment shall not constitute a waiver of any other Event of Default. Section 2.05. Assignment and Leasing. (a) Except as specifically provided herein, the County shall not assign, transfer, pledge, hypothecate or otherwise dispose of this Agreement, the Project, or any part thereof or any interest therein without the prior written consent of the Owners of Certificates representing not less than two thirds of the unpaid principal balance. The County may lease the Project without consent of the Owners, but only if the Trustee receives a security interest in the lease. Prior to any assignment or leasing the County shall 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. (b) The Trustee may assign or sell its interest in this Agreement only in connection with the issuance of Certificates, or in connection with the appointment of a successor Trustee. Section 2.06. Possession. The County shall be entitled to possession of the Project upon execution of this Agreement. All risks of damage, destruction, or loss of the Project shall pass to the County upon execution hereof. Page 8 - Installment Purchase and Trust Agreement 0083-0058 Section 2.07. Modifications of the Project. (a) The County may add to or improve the Project if: (i) The additions or improvements 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 additions or improvements to the Project; and, (iii) The improvements or additions 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 additions and improvements. (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 (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 this Agreement. Section 2.08. Security for the Certificates. The Certificates represent undivided proportional ownership interests in the principal installments of the Purchase Price due from the County under this Agreement and the interest due on such principal installments, and are additionally secured by the accounts held hereunder 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 a general obligation 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 hereunder, the faith and credit of the County are pledged to the payment of the Installment Payments. Page 9 - Installment Purchase and Trust Agreement 0083-0059 Section 2.09. Nonappropriation of Funds. The County, by entering into this Agreement, acknowledges its current intention to make all Installment Payments due hereunder 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 County's legal obligations to make Installment Payments hereunder 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 as provided in Section 2.04(c). The County agrees (i) that County staff will, for each fiscal period in which Installment Payments are scheduled to be made, present to the County's Board of Commissioners 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 legally available therefore, it will make all Installment Payments; and (iii) that it will not cancel this Agreement under the provisions of this Section 2.09 if sufficient funds are appropriated and budgeted to it, or by it, for the acquisition, retention or operation of the Project. Section 2.10. Use of Reserve. It shall not constitute an Event of Default under Section 2.04(a)(ii) if: (a) The County has previously filed with the Trustee a 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; and (b) The amounts transferred to the Trustee under Section 2.01(b), plus amounts available in the Reserve Account, at least equal the Installment Payments due in that fiscal year; and (c) The full amount of the transfer required by Section 2.01(b) was made in the prior fiscal year. Page 10 - Installment Purchase and Trust Agreement 0083 -0060 ARTICLE III CERTIFICATES: TERMS AND PROVISIONS PREPAYMENT OF CERTIFICATES Section 3.01. Preparation of Certificates. (a) The Trustee shall prepare, authenticate and deliver to their purchasers Certificates in an aggregate principal amount equal to the Purchase Price. The Certificates shall evidence the ownership of, and the right to receive, a proportionate share of the principal installments specified in the certificates and the interest due thereon, which are to be paid by the County hereunder. Certificates shall be in denominations of $5,000, or any integral multiple, and shall indicate that the principal amount thereof is payable on the due date of the principal installments for which the Certificates are issued. Certificates may be exchanged for an equal principal amount of certificates having the same terms, but different authorized denominations, as provided in Section 3.05. (b) The Trustee shall not at any time while the Certificates are outstanding issue additional certificates evidencing ownership of the Installment Payments, except as provided in Section 3.05 hereof. Section 3.02. Form; Payment. The Certificates shall be in registered form substantially as set forth in Exhibit C. Installment Payments shall be paid to the Certificate Owners as provided in Section 3.05 hereof. Section 3.03. Date of Certificate. The Certificates shall be dated with the date of this Agreement. Section 3.04. Authentication. The Certificates shall be authenticated by the manual signature of an authorized officer of the Trustee. Section 3.05. Transfer of Certificates. (a) No Certificate shall be entitled to any right or benefit under this Agreement unless it shall have been authenticated by an authorized officer of the Trustee. The Trustee shall authenticate the Certificates to be delivered at closing, and shall additionally authenticate any Certificate properly surrendered for exchange, transfer or replacement pursuant to this Agreement. (b) The Trustee shall maintain a Certificate register, and shall enter the names and addresses of the Owners in the Page 11 - Installment Purchase and Trust Agreement 0083 -0061 Register when Certificates are authenticated. The County and the Trustee may treat the persons listed as Owner in the Certificate register as the Owners of the Certificate for all purposes. (c) The Trustee shall, on behalf of the County, mail on each Payment Date the interest attributable to the principal which each Certificate represents to the name and address of each Certificate Owner entitled thereto, as they appear on the Certificate register on the Record Date, but solely from moneys available in the Installment Payment Account. If payment is so mailed, neither the County nor the Trustee shall have any further liability to any party for such payment. The Trustee shall pay the principal amounts to which the Owners are entitled, but solely from moneys available in the Installment Payment Account, upon presentation and surrender of the Certificates at the Principal Office of the Trustee. (d) If there is a prepayment described in Section 2.01(c)(iii), the Trustee may fix a special Record Date and notify owners thereof, not less than 15 days prior to the time when payments will be made based on the special Record Date. The Trustee shall notify affected owners of any prepayment under Section 2.01(c)(i) hereof, not less than 15 days prior to the date on which such prepayment is scheduled to be made. If less than all principal due on a single date is prepaid, the Trustee shall apply the prepayment to outstanding certificates in increments of $5,000 (to the extent possible) and by lot. (e) Certificates may be exchanged or transferred to other Owners if the Certificate Owner submits the following to the Trustee: (i) Written instructions for exchange or transfer satisfactory to the Trustee, signed by the Owner or his attorney in fact and guaranteed or witnessed in a manner satisfactory to the Trustee; and (ii) The Certificates to be exchanged or transferred. (f) The Trustee shall note the date of authentication on the Certificates. After Closing, the date of authentication shall be the date as of which the Owner's name is listed on the Certificate Register. (g) For purposes of this Section 3.05, Certificates shall be considered submitted to the Trustee on the date the Trustee actually receives the materials described in subsection (e) of this Section. Page 12 - Installment Purchase and Trust Agreement 0083-0062 (h) A mutilated, lost or destroyed Certificate may be replaced by the Trustee at the request and expense of its Owner, if the Owner: (i) furnishes indemnity satisfactory to the Trustee which will protect the Trustee and the County against loss or liability resulting from any demand or payment on a Certificate which the Owner seeks to have replaced; and (ii) submits an affidavit satisfactory to the Trustee describing the Certificate and the circumstances under which it was mutilated, lost or destroyed. Page 13 - Installment Purchase and Trust Agreement 0083-0063 ARTICLE IV ESTABLISHMENT AND ADMINISTRATION OF TRUST ACCOUNTS Section 4.01 Establishment and Funding of Accounts. (a) There are hereby established with the Trustee the following trust accounts: (i) The "Deschutes County 1987 Project Installment Payment Account," hereafter referred to as the "Installment Payment Account;" (ii) The "Deschutes County 1987 Project Proceeds Account," hereafter referred to as the "Proceeds Account;" and, (iii) The "Deschutes County 1987 Project Debt Service Reserve Account" hereafter referred to as the "Reserve Account;" (b) Upon Closing, the proceeds of the sale of the Certificates and other funds shall be deposited as follows: (i) The amount of accrued interest, if any, shall be deposited with the Trustee in the Installment Payment Account. (ii) An amount equal to the Required Reserve shall be deposited with the Trustee in the Reserve Account. (iii) The cost of acquiring the Project shall be paid into the Proceeds Account. (iv) The balance of the proceeds shall be deposited with the County. Section 4.02. Administration of Installment Payment Account. (a) The Installment Payment Account shall be maintained by the Trustee until the Installment Payments are paid in full pursuant to the terms hereof. Accrued interest received from the sale of the Certificate, Installment Payments, and any other amounts which the Trustee receives and are available for use as Installment Payments shall be immediately deposited by the Trustee in the Installment Payment Account. (b) The Trustee shall withdraw from the Installment Payment Account, on each Payment Date, an amount equal to the Page 14 - Installment Purchase and Trust Agreement 0083-0064 Installment Payment due on such Payment Date, and shall pay, on behalf of the County, such withdrawn amount to the Owners as provided herein. (c) Monies in the Installment Payment Account shall be used solely for Installment Payments, except as provided in Section 4.05. (d) If on any Payment Date the amount of all Installment Payments then due and payable exceeds the amount on hand in the Installment Payment Account and the Reserve Account, the Trustee shall apply the moneys on hand therein first to the payment of any interest due or past due on the Certificates, pro rata if necessary, and second to the payment of the unpaid principal which is then due or past due, pro rata if necessary. Section 4.03. Administration of Proceeds Account. Monies in the Proceeds Account shall be used to pay any costs of acquiring the Project, costs incurred by the County in connection with execution of this Agreement and issuance of the Certificates, and (if moneys in the Installment Payment Account and Reserve Account are insufficient) Installment Payments. The Trustee shall disburse moneys in the Proceeds Account at the direction of the County to pay such costs, Any moneys remaining after June 1, 1990, shall be transferred to the Installment Payment Account. Section 4.04. Administration of Reserve Account. (a) Monies in the Reserve Account shall be held in trust for the payment when due of the Installment Payments to be paid pursuant to the Agreement, and shall be used and applied only as hereinafter provided. If on any Payment Date the moneys on hand in the Installment Payment Account are not sufficient to pay any Installment Payment then due and unpaid, the Trustee shall use the moneys on hand in the Reserve Account to make such payment on behalf of the County by transferring the amount necessary for this purpose to the Installment Payment Account. (b) If the combined balance in the Installment Payment Account and the Reserve Account at any time equals or exceeds the sum of all unpaid Installment Payments, the balance in the Reserve Account shall be transferred to the Installment Payment Account. Section 4.05. Deposit and Investment of Monies in Trust Accounts. (a) All moneys held by the Trustee in any of the accounts established pursuant to this Agreement shall be deposited or invested in Permitted Investments, which deposits or investments may be made with the commercial banking or investment Page 15 - Installment Purchase and Trust Agreement 0083 -0065 department of the Trustee, pursuant to written instructions of the Authorized Officer. If the Authorized Officer does not provide the Trustee with written instructions for such investment, the Trustee shall invest such moneys in Permitted Investments so as to obtain the highest yield which the Trustee deems practicable, having due regard for the safety of such moneys and for the dates upon which such moneys will be required for uses and purposes specified in this Agreement. (b) Except as provided in Section 4.05 hereof: (i) Investment earnings on moneys in the Proceeds Account shall be retained in the Proceeds Account. (ii) Investment earnings on moneys in the Installment Payment Account shall be retained in the Installment Payment Account. (iii) Investment earnings on moneys in the Reserve Account shall be retained in the Reserve Account until the Reserve Account has a balance equal to the highest amount of Installment Payments in any remaining fiscal year. Thereafter, earnings shall be transferred to the Installment Payment Account. (c) The Trustee shall act only as agent in making or disposing of any investment. The Trustee shall not be liable for any loss resulting from the making or disposition of any investment pursuant to the provisions of subsection (a) of this section and any such losses shall be charged to the account with respect to which such investment was made. (d) The Trustee may sell any investments held hereunder prior to maturity, if such a sale is required to permit Installment Payments to be paid timely to Owners. (e) If any moneys remain in the accounts established hereunder after all sums due hereunder have been paid, such moneys shall be returned to the County. Page 16 - Installment Purchase and Trust Agreement 0083-0066 ARTICLE V REPRESENTATIONS AND COVENANTS Section 5.01. County to Perform. The County covenants and agrees with the Owners of the Certificates to perform all obligations and duties imposed on it under this Agreement. Section 5.02. Notice of Non - Payment. In the event of delinquency in the payment of any amounts due from the County hereunder, the Trustee shall, on the date upon which such delinquency occurs, immediately give written notice of the delinquency and the amount thereof to the County. Section 5.03. No Obligation by the County to Owners. Except for the payment of Installment Payments when due in accordance with this Agreement and the performance of the other covenants and agreements of the County contained herein, the County shall have no obligation or liability to any of the other parties or to the Owners of the Certificates with respect to this Agreement or the term, execution, delivery or transfer of the Certificates, or the distribution of Installment Payments to the Owners by the Trustee. Section 5.04. No Obligation with Respect to Performance by Trustee. The County shall have no obligation or liability to any of the other parties or to the Owners of the Certificates with respect to the performance by the Trustee of any duty imposed upon it under this Agreement. Section 5.05. Tax Covenant. 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: (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. Page 17 - Installment Purchase and Trust Agreement 0083-0067 (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. (5) The County designates the Certificates as "qualified tax exempt obligations" pursuant to Section 265(b)(3) of the Code and shall not designate nor sell tax exempt obligations in the aggregate amount of more than $10,000,000 in the 1987 calendar year. The covenants contained in this section and any covenants in the closing documents for the bonds shall constitute contracts with the owners of the bonds, and shall be enforceable by them. Section 5.06. Covenant to Authorize. The County will comply with all applicable laws relating to levying and collecting taxes and other revenues, and budgeting and appropriating moneys for the Installment Payments due under this Agreement. To the extent that money is appropriated, all amounts becoming payable hereunder will be duly authorized and paid when due out of funds legally available for such purpose. Section 5.07. 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 this Agreement. The County may issue obligations secured by the Project which have a lien on the Project which is subordinate to this 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. Section 5.08. Taxes. In addition to the payments to be made pursuant to Section 2.01 hereof, the County agrees to pay any and all taxes and other charges imposed on the Project, and to indemnify and hold the Trustee harmless from and against, such taxes and charges. The County may contest any such taxes prior to payment provided such contest does not involve any risk of sale, forfeiture or loss of the Project or any interest therein. Page 18 - Installment Purchase and Trust Agreement 0083 -0068 Section 5.09. County Representations. The County represents as follows: (a) The County is a political subdivision of the State of Oregon, and is authorized by ORS 271.390 to enter into this Agreement. This Agreement has been duly authorized, executed, and delivered by the County and is a valid and binding limited obligation of the County enforceable in accordance with its terms. All requirements for the County's execution, delivery and performance of t his Agreement, including applicable public bidding requirements and laws relating to the sale and purchase of interests in property, have been or will be, complied with in a timely manner. (b) There are no pending or threatened lawsuits or administrative or other proceedings contesting the legal authority for, authorization or performance of, or expenditure of funds pursuant to, this Agreement to which the County is a party. (c) The County has budgeted and has available for the current fiscal period sufficient funds to comply with any obligations it may have hereunder which are due in that period. Section 5.10. 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 herein contained (regardless of whether such breach constitutes an event of default) 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. Page 19 - Installment Purchase and Trust Agreement 0083 -0069 (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. (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. No such proceeds shall be disbursed until the County files with the Trustee an MAI appraisal evidencing that unpaid Agreement principal is 75% or less of the 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 and is not cured, any proceeds of insurance held by the Trustee shall be applied to the payment of amounts due under this Agreement. Such amounts shall be applied first to pay principal, Any excess after all principal is paid may be used to pay interest, and any amount remaining thereafter shall be paid to the County. Section 5.11. Maintenance and Repair. At its own cost and expense, the County shall service, repair and maintain the Project in good condition, repair, appearance and working order. Section 5.12. Conditions Precedent Satisfied. The County represents and recites that all acts, conditions and things required by law to exist, happen and be performed precedent to and in connection with the execution and entering into of this Agreement have happened and have been performed in regular and due time, form and manner as required by law, and that it is now duly empowered to execute and enter into this Agreement. Page 20 - Installment Purchase and Trust Agreement 0083-0070 ARTICLE VI THE TRUSTEE Section 6.01. Acceptance of Appointment. In consideration of the compensation herein provided for, the Trustee agrees to serve as Trustee under this Agreement. Section 6.02. Removal and Resignation. (a) The County or the holders of a majority in aggregate principal amount of the Certificate Outstanding may by written request, remove the Trustee and may appoint a successor Trustee, but any such successor shall be a bank or trust company doing business in Oregon, having a combined capital (exclusive of borrowed capital) and surplus of at least Twenty -Five Million Dollars ($25,000,000), be subject to supervision or examination by federal or state authority, and publish a report of condition at least annually, pursuant to law or to the requirements of any supervision or examining authority above referred to, evidencing its combined capital and surplus as set forth in its most recent report of condition so published. (b) The Trustee may at any time resign by giving written notice to the County and by giving to the Owners notice by mail not less than 60 days prior to the proposed resignation date. Upon receiving such notice of resignation, the County shall promptly appoint a successor Trustee by an instrument in writing; provided, however, that in t does not appoint a successor Trustee within ninety (90) days following receipt of such notice of resignation, the resigning Trustee may petition any court having jurisdiction to appoint a successor Trustee. Any resignation or removal of the Trustee and appointment of a successor Trustee shall become effective upon acceptance of appointment by the successor Trustee. (c) The Trustee shall provide notice to the Owners of any change in the Trustee not later than the Payment Date following the change in Trustee. Section 6.03. Compensation to the Trustee. The County shall pay the Trustee its previously agreed fees, and shall reimburse the Trustee for all its reasonable advances and expenditures (including its reasonable attorneys fees). The Trustee shall not be entitled to any lien on the accounts created hereunder for the payment of its fees and expenses. Section 6.04. Protection to the Trustee. (a) The Trustee shall be protected and shall incur no Page 21 - Installment Purchase and Trust Agreement 0083-0071 liability in acting or proceeding in good faith upon any document which it shall in good faith believe to be genuine, and the Trustee shall be under no duty to make any investigation or inquiry about any statement contained or matters referred to in any such document, but may accept and rely upon the same as conclusive evidence of the truth and accuracy of such statements. The Trustee shall not be bound to recognize any person as an Owner of any Certificate or to take any action at his or her request unless such Certificate shall be deposited with the Trustee or satisfactory evidence of the ownership of such Certificate shall be furnished to the Trustee. The Trustee may consult with counsel, who may be counsel to the County, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith in accordance therewith. (b) Whenever in the administration of its duties under this Agreement, the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter shall be deemed to be conclusively proved and established by the Certificate of an Authorized Officer and such Certificate shall be full warranty to the Trustee for any action taken or suffered under the provisions of this Agreement upon the faith thereof, but in its discretion the Trustee may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable. (c) The Trustee may buy, sell, own, hold, and deal the Certificates, and may join in any action which any Owner may be entitled to take with like effect as if the Trustee were not a party to this Agreement. The Trustee, either as principal or agent, may also engage in or be interested in any financial or other transaction with the County and may act as depository, trustee, or agent for any committee or body of Owners or other obligations of the County as freely as if it were not Trustee hereunder. (d) The recitals, statements and representations in this Agreement and in the Certificates shall be taken and construed as made by the County, and not by the Trustee, and the Trustee does not assume, and shall not have, any responsibility or obligation for the correctness of any thereof. (e) The Trustee may execute any of the trusts or powers hereof and perform the duties required of it hereunder by or through attorneys, agents, or receivers, and shall be entitled to advice of counsel concerning all matters of trust and its duties hereunder, and the Trustee shall not be answerable for the default or misconduct of any such attorney, agent or receiver selected by it with reasonable care. The Trustee shall not be Page 22 - Installment Purchase and Trust Agreement 0083 -0072 answerable for the exercise of any discretion or power under this Agreement or for anything whatever in connection with the funds and accounts established hereunder, except only for its willful misconduct or want of reasonable care. (f) 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 (including all its reasonable attorney's fees, whether litigation is filed or not, or on appeal, if any) and any liability it may suffer as a result of such actions. (g) 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. Section 6.05. No Liability to Owners for Payment. Except as provided in this Agreement, the Trustee shall not have any obligation or liability to the Owners with respect to the payment of the Installment Payments by the County when due, or with respect to the performance by the County of any other covenant made by it herein. Section 6.06. Investments. The Trustee shall not be responsible for the sufficiency of the value of or to be to the Project. The Trustee shall not be responsible or liable for any boss suffered in connection with any investment of funds made by it under the terms of and in accordance with this Agreement. Section 6.07. County Indemnification of the Trustee. Subject to the Constitution and laws of the State of Oregon and to the fullest extent permitted by law, the County shall and hereby agrees to indemnify and save the Trustee harmless from and against all claims, losses and damages arising out of (i) the use, maintenance, condition or management of, or from any work or thing done on the Project by the County, (ii) any breach or default on the part of the County in the performance of any of its obligations under this Agreement, or (iii) any act of negligence of the County or of any of its agents, contractors, servants, employees, or licensees with respect to the Project. Indemnification for any tort mentioned in this Section 6.07 shall be limited to the extent and in the amounts provided for by Oregon law. No indemnification will be made under this Section or elsewhere in this Agreement for willful misconduct, want of reasonable care, or breach of duty under this Agreement by the Trustee, its officers, agents, employees, successors, or assigns. Page 23 - Installment Purchase and Trust Agreement 0083 -0073 ARTICLE VII DEFEASANCE Section 7.01. Conditions for Defeasance. If: (a) The County deposits cash or Government Obligations irrevocably in escrow for the payment of Installment Payments, together with irrevocable instructions for the application of the escrow to pay Installment Payments; (b) The County obtains an opinion from a certified public accountant experienced in giving such opinions that cash and the principal and interest to be received from the Government Obligations are calculated to be sufficient, without further reinvestment, to pay when due all Installment Payment principal, interest and premium (if any), then due; and (c) The County obtains an opinion from nationally recognized bond counsel that the proposed defeasance will not cause the interest component of the Installment Payments to be taxable under federal income tax laws; then any money held in accounts hereunder may be transferred to the escrow or the County, the Installment Payments shall be made on behalf of the County solely from the moneys available in escrow, and the County shall have no further obligation to make Installment Payments to the Trustee hereunder. The Trustee shall promptly notify all Certificate Owners of any defeasance hereunder. Section 7.02. Conveyance Upon Defeasance. Upon defeasance pursuant to Section 7.01 hereof, the Trustee shall, if the County so requests, convey title to the Project to a party designated by the County, subject to the County's interest hereunder. Page 24 - Installment Purchase and Trust Agreement 0083 -0074 ARTICLE VIII AMENDMENT: ADMINISTRATIVE PROVISIONS Section 8.01. Amendment. This agreement may be amended in writing by agreement between parties: (a) without consent of the Owners, but only to make changes which, in the reasonable judgment of the County and Trustee, are not prejudicial to the interests of the Owners; or (b) with the consent of the Owners of Certificates representing two - thirds of the unpaid principal amount of Installment Payments, to make any other change. Section 8.02. Recording and Filing. This Agreement shall be recorded in the real property records of the County, and shall constitute a lien on the Project for the amounts due hereunder. The Trustee shall be responsible for the recording and filing of financing statements (or continuation statements in connection therewith) if any, or of any supplemental instruments or documents of further assurance as may be required by law to perfect the security interests created by this Agreement, which must be filed after delivery of this Agreement. Section 8.03. Trustee to Keep Records. The Trustee shall keep a copy of this Agreement and books and records of all moneys received and disbursed under this Agreement, which shall be available for inspection by the County, and the Owners at any time during regular business hours. Section 8.04. Notices. All written notices to be given under this Agreement shall be given by mail to the party entitled thereto at its address set forth below, or at such address as the party may provide to the other parties in writing from time to time. If to the County: If to the Trustee: Chair Board of County Commissioners c/o Deschutes County Deschutes County Courthouse Bend, Oregon 97701 The Oregon Bank Corporate Trust Department 1001 S.W. Fifth Third Floor Portland, Oregon 97204 Page 25 - Installment Purchase and Trust Agreement 0083 -0075 Section 8.05. Oregon Law. This Agreement shall be construed and governed in accordance with the laws of the State of Oregon. Section 8.06. Severability. Any provision of this Agreement found to be prohibited by law shall be ineffective only to the extent of such prohibition, and shall not invalidate the remainder of this Agreement. Section 8.07. Binding on Successors. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. Section 8.08. Headings. Headings preceding the text of the several Articles and Sections hereof, and the table of contents, are solely for convenience or reference and shall not constitute a part of this Agreement or affect its meaning, construction or effect. Section 8.09. Execution in Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the parties have executed and attested this Agreement by their officers thereunto duly authorized as of the date and year first written above. DESCHUTES COUNTY By: Chair, Board of County Commissioners By: County Treasurer Page 26 - Installment Purchase and Trust Agreement STATE OF OREGON County of Deschutes this 0083 -0076 ) ss. The foregoing instrument was acknowledged before me day of , 1987, by STATE OF OREGON County of Deschutes this Notary Public for Oregon My Commission Expires: ) ss. The foregoing instrument was acknowledged before me day of , 1987, by Notary Public for Oregon My Commission Expires: Page 27 - Installment Purchase and Trust Agreement 0083-00'7 EXHIBIT A BEND HARDWARE SITE COMPOSITE LEGAL DESCRIPTION Beginning at a point on the east line of and North 0 14'22" West 238.00 feet from the southeast corner of the northwest quarter of the northeast quarter of Section 32 in Township 17 South and Range 12 East of the Willamette Meridian in Deschutes, County Oregon; said point being the northeast corner of that parcel of land described in Volume 58 Page 112 of the Deschutes County Deed Records; and running thence North 0 14'22" West along the east line of said NW 1/4 NE 1/4 a distance of 199.70 feet to a 5/8" iron rod which is East of a point on the easterly right -of -way of Wall Street, said point being North 38 33'05" East 559.98 feet along said easterly right -of -way from the south line of said NW 1/4 NE 1/4 per that deed recorded in Book 16 Page 324 of said County Records; thence West 5.94 feet to a 5/8" iron rod on the easterly right -of -way of Wall Street; thence South 38 33'05" West 255.49 feet to the northwest corner of that parcel of land described in Volume 58 Page 112; thence South 38 33'05" West 13.88 feet to the southwest corner of said parcel; thence leaving said right -of -way South 86 11'10" East 32.00 feet to the angle point in the South boundary of said parcel; thence North 89 57'41" East 142.78 feet to the east line of said NW 1/4 NE 1/4 and the southeast corner of said parcel; thence North 0 14'22" West 13.00 feet to the point of beginning. Contains 19358 square feet. Zam- K. at27 David K. Bateman LS 1068 April 10, 1987 Page 28 - Installment Purchase and Trust Agreement DAVID BANS AND ASSOCIATES. INC. ENGINEERS. St R \T ?)'ORS. MANNERS. L, \\DSC.\I'E ARCI ILLE(; LS OFFICES IN OREGON. \1AS1I1 \GTO\ .1 \D (;.\LIFOR\i.\ -0) \. \1. \ \: \LL STREET. SUITE 102 BEND. OREGON 0-01-2-12 (;03):9,--611 0083-0078 EXHIBIT B DESCHUTES COUNTY INSTALLMENT PURCHASE AND TRUST AGREEMENT Issuer: Deschutes County, Oregon Issue: Installment Purchase and Trust Agreement Dated Date: Closing Date: Total Installment Payment Dates Principal Rate Interest Payment Page 29 - Installment Purchase and Trust Agreement 0083 -0019 EXHIBIT C FORM OF CERTIFICATE OF PARTICIPATION Number R- $ CERTIFICATE OF PARTICIPATION, SERIES 1986 (DESCHUTES COUNTY, OREGON) Evidencing a Proportionate Interest of the Owner in Installment Payments due under an Installment Purchase and Trust Agreement between DESCHUTES COUNTY, OREGON and THE OREGON BANK, AS TRUSTEE DATE OF ORIGINAL ISSUE INTEREST RATE PAYMENT DATE CUSIP THIS CERTIFICATE EVIDENCES THAT: is the Owner of an undivided, proportionate interest in certain Installment Payments due under that certain Installment Purchase and Trust Agreement dated as of , 1987 (the "Agreement "), between Deschutes County, Oregon, a political subdivision of the State of Oregon (the "County "), and , as Trustee for the Owner, and is entitled to receive the principal amount of DOLLARS from the principal component of the Installment Payment due from the County on the Payment Date shown above (the "Principal "), together with a proportionate share of the interest components of the Installment Payments which are allocable to the Principal. The Agreement requires the County to pay interest on the Principal on June 1 and December 1 of each year at the annual Interest Rate indicated above. All amounts payable hereunder are payable in lawful money of the United States of America, which at the time of payment is legal tender for the payment of public and private Page 30 - Installment Purchase and Trust Agreement 0083 -0080 debts. The principal is payable on surrender of this Certificate at the principal office of the Trustee at which it conducts corporate trust business in Portland, Oregon (the "Principal Office "). Interest payable under this Certificate is payable by check or draft mailed on the payment date by the Trustee to the registered Owner of this Certificate as shown on the 15th day of the preceding month in the Certificate Register maintained by the Trustee. The Certificates represent an undivided, proportionate interest in the Loan Payments due from the County under the Agreement. The obligation of the County to make Installment Payments is subject to annual appropriation, as provided in the Agreement. The Agreement is additionally secured by a lien on certain property, as provided in the Agreement. The Agreement is not a general obligation of the County, and the unlimited taxing power of the County is not pledged thereto. ADDITIONAL PROVISIONS OF THIS CERTIFICATE APPEAR ON THE REVERSE SIDE HEREOF; SUCH PROVISIONS HAVE THE SAME EFFECT AS IF THEY WERE PRINTED HEREIN. THIS CERTIFICATE SHALL NOT BE VALID UNLESS PROPERLY AUTHENTICATED BY THE TRUSTEE IN THE SPACE INDICATED BELOW. CERTIFICATE OF AUTHENTICATION This is one of the Certificates of Participation in the Installment Payments due under the Agreement described herein, and is properly registered and authenticated pursuant to the Agreement. Date of Authentication: as Trustee By: Authorized Officer Copies of the Agreement are on file at the office of the County Clerk of Deschutes County and at the Principal Office. Reference to the Agreement and any and all amendments thereto is Page 31 - Installment Purchase and Trust Agreement 0083-0081 made for a description of the covenants of the County securing the Installment Payments, the nature, extent and manner of enforcement of such covenants, the rights and remedies of the Owners of the Certificates with respect thereto and the other terms and conditions upon which the Certificates are delivered thereunder. To the extent and in the manner permitted by the terms of the Agreement, the provisions of the Agreement may be amended by the parties thereto with the written consent of the Owners of at least two - thirds in principal amount of the Certificates then outstanding. This Certificate may be exchanged, transferred or replaced only as provided in the Agreement. The Ownership of this Certificate must be registered upon the books of the Trustee as provided in the Agreement. The Trustee may treat the registered Owner hereof as the absolute Owner hereof for all purposes, and the Trustee shall not be affected by any notice to the contrary. The Certificates are issuable in the form of fully registered Certificates without coupons in denominations of $5,000 or any integral multiple thereof. The amounts due under the Agreement may be prepaid under the conditions and upon the terms described in the Agreement. THE TRUSTEE HAS NO OBLIGATION OR LIABILITY TO THE CERTIFICATE OWNERS FOR THE PAYMENT OF INTEREST OR PRINCIPAL PORTIONS PERTAINING TO THE CERTIFICATES; THE TRUSTEE'S ONLY OBLIGATIONS ARE TO ADMINISTER, FOR THE BENEFIT OF THE COUNTY AND THE CERTIFICATE OWNERS, THE VARIOUS FUNDS AND ACCOUNTS ESTABLISHED IN THE AGREEMENT. Page 32 - Installment Purchase and Trust Agreement 0083 -0082 (Form of Assignment) ASSIGNMENT FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto . Please insert social security or other identifying number of assignee. The within Certificate and does hereby irrevocably constitute and appoint as attorney, to transfer this Certificate on the books kept for registration thereof with the full power of substitution in the premises. Date: . Note: The signature(s) on this Assignment must correspond with the name(s) as written on the face of the within registered Certificate in every particular without alteration or enlargement or any change whatsoever. Signature Guaranteed (Bank, Trust Company or Firm) (Authorized Officer) The following abbreviations, when used in the inscription on the face of the within Certificate, shall be construed as though they were written out in full according to applicable laws or regulations. Page 33 - Installment Purchase and Trust Agreement RDRdkt275 ATT.A HM:ENT "C" DRAFT SHFARSON LEHMAN IRS ft1ERS 0083--0083 $240,000 Deschutes County, Oregon Certificates of Participation, Series 1987 PURCHASE AGREEMENT Deschutes County Commissioners Bend, Oregon Shearson Lehman Brothers Inc., Foster & Marshall Division (the "Purchaser "), is pleased to offer to purchase from Deschutes County (the "Seller ") all of its principal amount of Certificates of Participation, Series 1987 (the "Certificates "). This offer is based upon the terms and conditions set forth below and in Exhibit A attached, which when accepted by the Seller shall constitute the terms and conditions of our Purchase Agreement for the Certificates. Those terms and conditions are as follows: June , 1987 1. Prior to the date of delivery and payment for the Certificates identified in paragraph j of Exhibit A ( "Closing "), the Seller shall adopt an Installment Purchase and Trust Agreement authorizing the issuance of the Certificates (the "Installment Purchase and Trust Agreement ") in form and substance acceptable to the Purchasers. 2. The Seller shall sell and deliver to the Purchasers, and the Purchasers shall purchase, accept delivery of and pay for the entire $240,000 principal amount of the Certificates, and only that amount. 3. The Seller consents to and ratifies the use by the Purchasers of the information contained in the Preliminary Official Statement relating to the Certificates, a copy of which is attached to this Purchase Agreement as Exhibit B (the "Preliminary Official Statement ") for the Certificates containing such revisions and additions to the Preliminary Official Statement as the Seller deems necessary, and further authorizes the use of the Final Official Statement in connection with the public offering and sale of the Certificates. 4. The Seller represents and warrants to, and agrees with, the Purchasers, as of the date hereof and as of the date and time of Closing, that: a. The Seller has and will have at Closing full legal right, power and authority to enter into and perform its obligations under the Purchase Agreement and under the Installment Purchase and Trust Agreement, to adopt the Installment Purchase and Trust Agreement and to sell and deliver the Certificates to the Purchasers; Foster & Marshall Division Shearson Lehman Brothers Inc. Koin Center, 222 S.W. Columbia St., Suite 1500 Portland, OR 97201 503 243 6901 Purchase Agreement Page Two DRAFT OOS3-►084 b. This Purchase Agreement, the Installment Purchase and Trust Agreement and the Certificates do not and will not conflict with or create a breach of or default under any existing law, regulation, judgment, order or decree or any agreement, lease or instrument to which the Seller is subject or by which it is bound; c. No governmental consent, approval or authorization other than the Installment Purchase and Trust Agreement is required in connection with the sale of the Certificates to the Purchasers; d. This Purchase Agreement, the Installment Purchase and Trust Agreement and the Certificates (when paid for by the Purchasers) are, and shall be at the time of Closing, legal, valid and binding obligations of the Seller enforceable in accordance with their respective terms, subject only to applicable bankruptcy, insolvency or other similar laws generally affecting creditors' rights; e. The Installment Purchase and Trust Agreement shall have been duly authorized by the Seller, shall be in full force and effect and shall not have been amended at the time of closing; f. The Preliminary Official Statement, except as to matters corrected in the Final Official Statement, shall be accurate and complete in all material respects as of its date with respect to information obtained from or utilized by officers and employees of the Seller in the normal course of their duties, and the Final Official Statement shall be accurate and complete in all material respects as of its date and as of the date of Closing to the knowledge and belief of such officers and employees; and g. Any certificate or copy of any certificate signed by any official of the Seller and delivered to the Purchaser's pursuant to or in connection with this Purchase Agreement shall be deemed a representation by the Seller to the Purchasers as to the truth of the statements therein made and is delivered to the Purchasers for such purpose only. 5. As conditions to the Purchasers' obligations hereunder: a. From the date of the Seller's acceptance of this Purchase Agreement to the date of Closing, there shall not have been any: (1) Material adverse change in the financial condition or general affairs of the Seller; (2) Event, court decision or proposed law, rule or regulation which may have the effect of changing the federal or State of Oregon income tax exemption of interest on the Certificates or the transactions contemplated by this Purchase Agreement or the Preliminary and Final Official Statements; Purchase Agreement Page Three DRAFT 0083 -0085 (3) International or national crisis, suspension of stock exchange trading or banking moratorium materially affecting the marketability of the Certificates; (4) Material adverse event with respect to the Seller which in the reasonable judgment of the Purchasers requires or has required an amendment, modification or supplement to the Final Official Statement and such amendment, modification or supplement is not made. b. At or prior to Closing, the Purchasers shall have received the following: (1) The Certificates, in definitive or temporary form, duly executed, authenticated and bearing proper CUSIP numbers; (2) A certificate of authorized officers of the Seller, in form and substance acceptable to the Seller and Purchasers, to the effect: (i) that the Seller's execution of the Final Official Statement is authorized, (ii) that, to the knowledge and belief of such officers, the Preliminary Official Statement did not as of its date and Final Official Statement (collectively the "Official Statements ") (including the financial and statistical data included therein) did not as of its date or as of the date of Closing contain any untrue statement of material fact or omit to state a material fact necessary to make such statements, in light of the circumstances under which they were made, not misleading; and (iii) that the representations of the Seller contained in this Purchase Agreement are true and correct when made and as of Closing; (3) An unqualified approving opinion or opinions of the law firm identified in paragraph 1 of Exhibit A as bond counsel or from another nationally recognized firm of municipal bond lawyers (either or both of which shall be referred to as "Bond Counsel ") satisfactory to the Purchasers and dated as of Closing, to the effect: (i) that the Seller has authority to adopt the Installment Purchase and Trust Agreement and to issue and sell the Certificates to the Purchasers; (ii) that the Certificates are valid, legal and binding obligations of the Seller, except to the extent that such enforcement may be limited by bankruptcy, insolvency or other laws affecting creditors' rights; and (iii) that interest on the Certificates is exempt from federal income taxation and State of Oregon income taxation; Purchase Agreement Page Four 1AFT 0083-0086 (4) A letter of Bond Counsel, dated the date of Closing and addressed to the Purchasers, to the effect that it may rely upon the opinion in subparagraph (3) above as if it were addressed to the Purchasers; (5) A certificate of authorized officers of the Seller to the effect that no litigation is pending, or to the knowledge of the Seller threatened, against the Seller in any court: (i) to restrain or enjoin the sale or delivery by the Seller of the Certificates; (ii) in any manner questioning the authority of the Seller to issue, or the issuance or validity of, the Certificates; (iii) questioning the constitutionality of any statute, resolution or the validity of any proceedings, authorizing the issuance of the Certificates; (iv) questioning the validity or enforceability of the Installment Purchase and Trust Agreement; (v) contesting in any way the completeness, accuracy or fairness of the Official Statements; (vi) questioning the titles of any officers of the Seller to their respective offices or the legal existence of the Seller under the laws of the State of Oregon; or (vii) which might in any material respect adversely affect the transactions contemplated herein and in the Official Statements to be undertaken by the Seller; (6) A certificate signed by authorized officers of the Seller to the effect that the officers of the Seller who signed or whose facsimile signatures appear on the Certificates were on the date of execution of the Certificates the duly elected, qualified and acting officers of the Seller and that their signatures are genuine or accurate facsimiles. (7) A certificate of authorized officers of the Seller to the effect that the Seller has not been and is not in default as to principal or interest payments on any of its bonds or other obligations, and has not failed timely to honor the provisions of any law providing for the restoring of a debt service reserve fund to required levels; (8) A certificate of authorized officers of the Seller to the effect that, from the respective dates of the Official Statements and up to and including the date of Closing, the Seller has not incurred any material liabilities, direct or contingent, nor has there been any material adverse change in the financial position, results of operations or condition, financial or otherwise, of the Seller, except as described in the Official Statements; Purchase Agreement Page Five LRAFT 0083-0087 (9) A certified copy of the Installment Purchase and Trust Agreement; (10) A definitive copy of the Final Official Statement, signed by an authorized officer of the Seller; (11) A non - arbitrage certificate signed by an authorized officer of the Seller; (12) A certified copy of this Purchase Agreement; (13) Such additional legal opinion, certificates, instruments and such documents as the Purchasers may reasonably request to evidence the truth, accuracy and completeness, as of the date hereof and as of the date of Closing, of the representations and warranties contained herein and of the statements and information contained in the Official Statements and the due performance by the Seller at or prior to Closing of all agreements then to be performed and all conditions then to be satisfied by the Seller. (14) A certificate of County Counsel to the effect that all applicable public contracting requirements have been complied with in connection with the authorization and execution of the Installment Purchase and Trust Agreement and the transactions contemplated therein; (15) A certificate of County Counsel to the effect that the Seller has and will have at Closing full legal right, power and authority to enter into and perform its obligations under the Purchase Agreement and under the Installment Purchase and Trust Agreement and to sell and deliver the Certificates to the Purchasers; (16) At the Closing, Bond Counsel shall receive confirmation that UCC statements evidencing the security interest in the Project are properly filed and a lien search evidencing the filing; (17) At the Closing, the Trustee shall receive an ALTA lender's policy (or irrevocable commitment therefor) of title insurance insuring the Installment Purchase and Trust Agreement as a first lien on the Project in an amount of $240,000, or if such amount is not obtainable, at the maximum amount available. 6. The Seller shall pay directly the fees and disbursements of Bond Counsel, Trustee and the Seller's other consultants and advisors, and the costs of printing the Certificates. The Purchasers shall pay the cost of printing and distributing the Preliminary and Final Official Statements (except in the circumstances and to the extent set forth in paragraph 7 hereof), the fees and disbursements of the Purchasers' counsel, if any, the Purchasers' expenses relative to Closing, including the cost of federal funds and the Purchasers' travel expenses, if any. Purchase Agreement Page Six L RAH- 0083 -0088 7. If, during the period ending on the earlier of June 30, 1987, or the date on which the Purchasers shall have completed the distribution and delivery to the public of all of the Certificates, any material adverse event affecting the Seller or the Certificates shall occur which results in the Final Official Statement containing any untrue statement of a material fact or omitting to state any material fact necessary to make the Final Official Statement, or the statements or information therein contained, in light of the circumstances under which they were made, not misleading, the Seller shall notify the Purchasers and, if in the opinion of the amendment to the Final Official Statement, the party whose omission, misstatement or changed circumstance has resulted in the supplement or amendment will at its expense supplement or amend the Final Official Statement in a form and in a manner approved by the Seller and the Purchasers. 8. Any notice or other communication to be given to the Seller under this Purchase Agreement shall be given by delivering the same in writing to its respective address set forth above. Any notice or other communication to be given to the Purchasers under this Purchase Agreement shall be given by delivering the same in writing to Shearson Lehman Brothers Inc., Foster & Marshall Division, 222 S.W. Columbia, Suite 1500, Portland, Oregon 97201 (Attention R. Scott Clements, Public Finance). 9. Upon acceptance of this Purchase Agreement, this Purchase Agreement shall be binding upon the Seller and the Purchasers. This Purchase Agreement is intended to benefit only the parties hereto. The Seller's representations and warranties shall survive any investigation made by or for the Purchasers, delivery and payment for the Certificates, and the termination of this Purchase Agreement. Should the Purchasers fail (other than for reasons permitted in this Purchase Agreement) to pay for the Certificates at Closing, the amount set forth in paragraph i of Exhibit A shall be paid by the Purchasers as liquidated damages in full, and costs shall be borne in accordance with Section 6. Should the Seller fail to satisfy any of the foregoing conditions or covenants, or if Purchasers' obligations are terminated for any reason permitted under this Purchase Agreement, then neither the Purchasers nor the Seller shall have any further obligations under this Purchase Agreement, except that expenses incurred shall be borne in accordance with Section 6. 10. This offer expires on the date set forth in paragraph n of Exhibit A. Respectfully submitted, SHEARSON LEHMAN BROTHERS INC. FOSTER & MARSHALL DIVISION R. Scott Clements Vice President Public Finance - Portland Purchase Agreement Page Seven „ FT 0083-0089 ACCEPTED by Deschutes County, Oregon, this day of , 1987. DESCHUTES COUNTY, OREGON By RSC /cb Enclosures EXHIBIT A DESCRIPTION OF CERTIFICATES DPAFT 0083-0090 a. Purchase Price: $ per $100.00 par value, plus accrued interest from June 1, 1987 to the date of Closing. b. Denominations: $5,000 or integral multiples thereof within a single maturity. c. Dated Date: June 1, 1987. d. Form: Fully registered with privileges of exchange at the expense of tie— Seller. e. Interest Payable: June 1 and December 1, commencing December 1, 1987. f. Maturity Schedule: Bonds shall mature serially on June 1 of each year in the amounts and shall bear interest at the rates set forth below: Due Interest Due Interest June 1 Amount Rate June 1 Amount Rate 1988 $10,000 1989 10,000 1990 10,000 1991 10,000 1992 10,000 1993 15,000 1994 15,000 1995 15,000 g. Net Interest Cost: True Interest Cost: 1996 $15,000 1997 20,000 1998 20,000 1999 20,000 2000 20,000 2001 25,000 2002 25,000 h. Redemption: On June 1, 1995, and any interest payment date thereafter, the County may elect to redeem all or any portion of the Certificates then outstanding, in inverse order of maturity, and by lot within a maturity at the redemption prices (expressed as a percentage of the principal maount) set forth below, together with accrued interest: Redemption Period June 1, 1995 and December 1, 1995 June 1, 1996 and thereafter i. Liquidated Damages: $500 • Redemption Price 101.0% 100.0 Estimated Closing Date: June 23, 1986 or such other date mutually agreed to by the parties to this Purchase Agreement, but not later than June 30, 1987. k. Rating of Certificates: The Certificates are non - rated. 1. Bond Counsel: Lindsay, Hart, Neil & Weigler, Portland, Oregon. m. Method of Payment: Federal Funds draft or wire. n. Offer Expires: June , 1987, 11:59 p.m. FOR INFORMATION PURPOSES: Gross Interest Cost $ Plus Discount ( % of par) Net Interest Cost $ 0083 -0091 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 EXHIBIT- B PRELIMINARY OFFICIAL STATEMENT DATED: May 15, 1)63 poll NEW ISSUE — NEGOTIATED RATING: No rating has been or will e app r`� 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 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 present state of Oregon personal income taxes. tz 03 u 71 49 $240,000 ,,,o vo CERTIFICATES OF PARTICIPATION u Evidencing Proportionate Ownership Interests 00 in an Installment Purchase and Trust Agreement with eii .46 DESCHUTES COUNTY, OREGON . o �; v Dated: June 1, 1987 Due: June 1, 1988 -2002 4 o The Certificates will be issued in fully registered form without coupons in denominations of $5,000 each or any integral multiple thereof. Interest due with respect to the Certificates will be payable semi - annually on June 1 and December 1, commencing December 1, 1987, by check or draft of the Trustee, currently The Oregon Bank, mailed to oo o the registered Owner on the record date at the address shown on the registration books. Principal is payable E w commencing June 1, 1988 and annually thereafter through June 1, 2002, at the principal trust office of the Trustee in o Portland, Oregon. The Certificates are subject to redemption prior to their stated maturities as described hereinafter. caZ oi The Certificates represent undivided proportional ownership interests in the Installment Payments, as provided •E herein, and are additionally secured by the mortgage on the Project, the Security Agreement, the Reserve Account Gand other accounts held by the Trustee hereunder, and any sums the Trustee may realize in connection with the no 8 exercise of default remedies. The obligation of the County to make Installment Payments under this Agreement is fa 5 subject to annual appropriation. The Certificates are not secured by the unlimited taxing power of the County and a) z are not a general obligation of the County or the Trustee, but are secured solely as provided herein. To the extent E Tti that funds are appropriated to make Installment Payments hereunder, the faith and credit of the County are pledged tri m to the payment of the Installment Payments. v 'El 5 Principal Interest Principal Interest 0 a; Due June 1 Amount Rate Price Due June 1 Amount Rate Price c/) 1988 $10,000 % 1996 $15,000 % C . 1989 10,000 1997 20,000 :E w 1990 10,000 1998 20,000 Tai 0 1991 10,000 1999 20,000 1992 10,000 2000 20,000 ct ,3 1993 15,000 2001 25,000 1994 15,000 2002 25,000 H .-. 1995 15,000 4: '. 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. Shearson Lehman Brothers Inc. 1 Foster & Marshall Division 1 0082 :-0093 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. PRELIMINARY OFFICIAL STATEMENT 0083 -0094 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 0083-0095 Page INTRODUCTION 1 THE CERTIFICATES General Description Redemption Provisions Notice of Redemption Security for the Certificates 1 1 1 2 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 8 Project Financing 8 SOURCES AND USES OF FUNDS 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 Table 4: Tax Collection Record Table 5: Consolidated Tax Rate Table 6: Major Taxpayers 10 10 10 10 10 10 11 12 13 14 16 17 17 FINANCIAL INFORMATION 3asis of Accounting Fiscal Year Audits Budgeting Process Table 7: Summary Table 8: General Table 9: General Table 10: General 0083 -0096 18 18 18 18 18 of 1986 -87 Budget 19 Fund Statement of Revenue and Expenditures 20 Fund Consecutive Balance Sheets 21 Fund Current Statement of Revenues and Expenditures 22 DESCHUTES COUNTY General Information Government and Administration Table 11: Board of Commissioners and Major Officials of the County ECONOMIC AND DEMOGRAPHIC INFORMATION Population Employment Municipal Services Information Economic and Demographic Tables Table 12: Population Estimates Table 13: Average Annual Unemployment as a Percent of Labor Force Table 14: Employment - Annual Averages and Percent Distribution By Industry Group Table 15: Major Employers Table 16: Income Estimates Table 17: Miscellaneous Economic Information LITIGATION AUDITS UNDERWRITING APPROVAL OF LEGAL PROCEEDINGS TAX EXEMPTION MISCELLANEOUS CONCLUDING STATEMENT APPENDIX A: JUNE 30, 1986 AUDITED FINANCIAL STATEMENT (partial) APPENDIX B: DRAFT LEGAL OPINION 23 23 23 23 24 24 24 24 25 25 26 26 27 28 29 29 30 '30 30 30 30 30 31 0083-0091 1 5 0- f . -------- \ \ . , _,.--- \ , ' - - - - - - - ) 'I( 0 - 7 (11 --,-,:.-4 .,-,., ■ : 'it.' : 77 1 , , , , , 7- 1 . j . , . ,,,, _ _ ' ' ----x... , - .-- - -- - 1 . 2 . ',...-„„,„ . ', --------;,,,,-„A ,:: ,,,-----------,---------,,---- --,,_,.. .., - ,..7,,, , ■ -,- „,,;,-,(, i) \ --, - - A , ze ? 4, ' - 1 1 •••■■••1 . $240,000 CERTIFICATES OF PARTICIPATION, SERIES 1987 Evidencing Proportionate Ownership Interests in an Installment Purchase and Trust Agreement with DESCHUTES COUNTY, OREGON INTRODUCTION 0083 -0098 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. 1 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. 0083-0099 NOTICE OF REDEMPTION 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 1 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 tnat 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 oe 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. 1 1 -2- 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 SUMMARY OF CERTAIN PROVISIONS OF THE INSTALLMENT PURCHASE AND TRUST AGREEMENT 0083 -0100 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: (1) 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. -3- 0083 -0101 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 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. Flo 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 I 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 1 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, I/ (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 (ii) Any proceeds from the sale of the removed property are QRtiwQ1O2 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 Commissioners 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 0083 -0103 of the Internal Revenue Code of 1985, 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: (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 NIAI 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. -6- a f 1 r 1 r 1 1 1 1 1 1 1 • 0083-0104 (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. io 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 0083-0105 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 Deposit to Reserve Account Cost of Issuance Underwriter's Discount Total Uses of Funds $200,000 24,000 INSTALLMENT PAYMENTS The Agreement requires semi- annual Installment Payments to be made by the County to the Trustee. In accordance with the Agreement the Installment Payments will be deposited by the Trustee in the Installment Payment Account and applied on a semi - annual basis to make principal and interest payments due with respect to the Certificates, sufficient to meet the following schedule: 0083 -0105 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 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 (al Net direct debt (all Net overlapping debt TOTAL NET DIRECT AND 1 debt paid with a general obligation debt paid in whole or in part of taxes) (as of March 31, 1987) OVERLAPPING DEBT 0083-0107 None pledge) $ 2,495,000 95,000 48,086,136 $48,181,136 DEBT RATIOS Per Capita 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. Percent of Assessed Valuation 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 -0108 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 done C. General Obligation Improvement (Bancroft) Bonds Improvements Improvements Improvements SHORT-TERM DEUT 10/1/81 10/1/84 12/1/85 10/1/91 10/1/94 12/1/95 $1,635,000 $1,045,000 550,000 475,000 940,000 330,000 TOTAL IMPROVEMENT BONDS: $2,400,000 TOTAL GENERAL OBLIGATION BONDS (GROSS DIRECT DEBT): $2,495,000 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. Deschutes County. 4) N N O. >. v •C CU< O NN0101 C's 0O0101LC) .) .0 NN.- -. -0000 =Or 000000000 O.— N X . R) .O.--. F- M O O.N 4) W S. 4-) I- N • L..-- Q. 0 >1 W O.e� N N I 1 1 1 1 1 1 ^� 4) < O. C 0 0 1 1 1 1 1 1 1 � CZ .v0 17n 0 00 n. cc In w o x- x _.o c .a —+/ 0 1-< P.--O S. C^ r.. 1.0 et f� inf-_ L C01. CU O. N N 0 00 LC) LO 010 LA L0 O 40 LA p 0 u) F— N+)O et00 Mr. OWN. MCOet S. 0.17 Z U) R) 4* .- M VD CO .— M LD CO •- 0. C W 4) 7 et et et etLALALALALD '0 O LAJ a'v ,N N N N N N N N N 0 }0i CL S. . 4) •-• 4■ 4■ 4- N 0 >1C i 4) U i� tsMM1.00 Lin '00'0 et co M O LAN 0 LD co 0 r\ LC) •••- 4)m N Ll) M LD LA r• 0 C11.- M N U)+DL W 000000000 ft 0 C +) 4) cE -J OD 04 etCM0110 LA0CDOD r, • X 4) L. F- _J V) MMhr�COr - NNM O S. RI C•.- O <M (0()etetetNNN.- M R+)17 0+) 1- H N >1 X 0. 7 i i. i ID O 4) 4) 4) 0 +) 0. 0. S. •.- CI 4.) i•) NMMr-00 LC) 1.0041 C) +) 0 > 44)) W C Uf •- LA M) N OLD CO O r- n C 0. U). -•.- Z 4) U) 4) 0) 0 tO Ll) I- 0 Ch .- Co) M 4) "V > ... 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Cp01CD - NMet41 W CO OD 00 01 01 Ch Ch C) CA F- F- C1010101O101C1CI101 O O F- Z - 12- 0083-0109 Derived from annual financial statements. 4) U i 0 N 1 1 TABLE 3 DESCHUTES COUNTY OVERLAPPING DEBT As of March 31, 1987 0083 -0110 i OVERLAPPING 1986 -87 Gross (1) Net (2) Gross (1) Net (zl Assessed Bonded Direct Bonded Direct Valuation Debt Debt Percent Debt Debt I Overlapping District (in $000) (in $000) (in $000) Overlap (in $000) (in $000) - Bend School District #1 Bond 1979 $1,660,576 $13,310 $13,310 100.00% $13,310 $13,310 City of Bend 564,066 13,440 7,875 100.00 13,440 7,875 ICity of Redmond 181,481 6,919 6,719 100.00 5,919 5,719 Bend School District #1 - Bond 1977 1,560,576 4,745 4,745 100.00 4,745 4,745 Central Oregon Hospital District 355,990 3,685 3,685 100.00 3,685 3,585 Redmond School District #2J 484,241 3,300 3,300 93.32 3,030 3,080 IBend School District #1 - Bond 12/77 1,660,576 2,660 2,660 100.00 2,660 2,660 Sisters School District #6 271,731 1,800 1,800 100.00 1,800 1,300 Bend School District #1 - Bond 1973 1,660,411 720 720 100.00 720 720 Central Oregon Community College 3,309,025 1,034 960 72.25 747 594 IICentral Oregon Park & Recreation District 355,990 575 575 100.00 575 575 Bend ,Metro Park & Recreation District 912,286 540 540 100.00 540 540 Redmond School District #2J - Bond 1968 523,483 570 570 93.80 535 535 City of Sisters 37,581 409 409 100.00 409 409 IBlack Butte Ranch RFPD 132,014 275 275 100.00 275 275 Bend School District #1 - Bond 9/73 1,660,411 175 175 100.00 175 175 Lapine RFPD 139,902 110 110 100.00 110 110 Laidlaw Water District 6,086 98 98 100.00 98 98 I Cloverdale RFPD 36,992 82 82 100.00 32 32 $53,904 $48,035 INOTE: Columns may not foot due to rounding. 1 1 1 1 1 1 t (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. Jet direct debt includes all tax - supported bonds. Bancroft Act general obligation improvement bonds and self - supporting bonds are excluded. 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 -0111 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 All Other 84.2% 81.6 83.8 90.3 96.0 100.0 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 sutticient 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. 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 indic�trl 9A percent tax levy collection for each taxing body. Ca l-01 12 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 tnis 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. 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 0083 -0113 N Total Collections as a Percent of Current Levy 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. 20oes 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. -16- 1 Percent Collected as of 04/30/87 99.6% 99.3 96.8 94.4 92.2 .. 80.53 1 1 1 1 1 1 1 1 1 1 1 1 1 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 0083 -01.14 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 1 FINANCIAL INFORMATION (� pp BASIS OF ACCOUNTING 0083-0115 1 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 I 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 1 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 I/ 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. 1 -18- 1 Fund TABLE 7 DESCHUTES COUNTY SUMMARY OF 1986 -87 BUDGET Allocation (in $000) Major Revenue Sourcesl 0083 -0116 ercent Amount of Fund (in $000) Revenue General $9,287 Property taxes $4,650 50.1% Beginning cash balance 1,300 14.0 Transfers from other funds 937 10.1 School 1,490 Forest receipts 1,256 84.3 Tax on electric co -ops 140 9.4 Federal mineral leases 88 5.9 Library 913 Transfer from General Fund 626 68.5 Beginning cash balance 150 16.4 Prior year tax collections 110 12.0 Sheriff's Levy 3,120 Transfer from General Fund 1,930 61.8 Beginning cash balance 600 19.2 Prior year tax collections 375 12.0 Road 5,842 Forest receipts 3,013 51.6 Motor vehicle revenue 1,491 25.5 Beginning cash balance 914 15.6 Solid Waste 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 Transfer from General Fund 152 12.3 Transfer from Road Fund 128 10.4 Bancroft Bond Redemption 860 Assessment payments 450 52.3 Beginning cash balance 400 46.5 Other Funds2 2,204 County Totals Less Interfund Transfers 29,584 (4,570) Final County Totals $ 25,014 llncludes 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. TABLE 8 DESCHUTES COUNTY GENERAL FUND 0083 -0117 1 STATEMENT OF REVENUES AND EXPENDITURES (in $000) 1 Percent of 1985 -86 Total gi Revenues/ 1981 -82 1982 -83 1983 -84 1984 -85 1985 -86 Expenditures 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% EXPENOITURES: General government 538 712 612 820 1,086 21.9% General services 2,351 2,508 2,233 2,929 3,403 68.7 Health and welfare 519 413 501 458 401 8.1 Sanitation 603 139 -- -- -- -- Capital Outlay 120 277 4 7 67 1.3 Total Expenditures 4,131 4,048 3,350 4,215 4,956 100.0% 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. -20- 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 M 1 1 TABLE 9 DESCHUTES COUNTY GENERAL FUND CONSECUTIVE BALANCE SHEETS As of June 30 of Given Year 0083 -0118 1984 1985 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 $ 33,045 Deferred revenue 438,143 Total Liabilities $ 471,188 Fund Balance: Undesignated 1,571,212 Total Fund Equity 1,571,212 TOTAL LIABILITIES AND FUND EQUITY $2,042,000 Source: Derived from annual financial statements. -21- $ 50,563 384,711 $ 435,274 1,635,444 1,635,444 $2,070,718 $ 40,081 339,371 $ 379,452 1,377,589 1,377,589 $1,757,041 TABLE 10 uESCHUTES COUNTY GENERAL FUriD CURRENT STATEMENT OF REVENUES AND EXPENDITURES As of April 30, 1987 (Unaudited) 0083-0119 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 Source: Deschutes County. (unaudited). -- $1,731,822 1 1 1 1 1 1 1 1 DESCHUTES COUNTY GENERAL INFORMATION 0083 -0120 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 4.6 percent over the past ten years with most of the growth occurring in the unincorporated portion. About 50 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 di thin 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 ITom Throop State Legislator 1/1/87 12/31/90 I Dick Maudlin Insurance Broker 1/1/85 12/31/88 Elected Officials 11 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) II Appointed Officials Administrative Services Director: Michael A. Maier County Legal Counsel: Richard L. Isham I/ Source: Deschutes County. 1 a -23- ECONOMIC AND DEMOGRAPHIC INFORMATION POPULATION 0083 -0121 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. Sheriff and Fire 0083 -0122 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 $250,000 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 Nithin 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 TABLE12 DESCHUTES COUNTY POPULATION ESTIMATES 0083 -0123 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 14 DESCHUTES COUNTY EMPLOYMENT - ANNUAL AVERAGES AND PERCENT DISTRIBUTION BY INDUSTRY GROUP 0083 -0124 1976 -86 Compound Annual Percent' Percent' 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. 'Percent of Total is based on total wage and salary employment. 2includes 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 -0125 June. 1985 May 1987 650 1,4001 550 550 190 214 203 212 200 196 180 150 100 120 100 110 140 140 llncludes 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. Z)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 6404 500 1705 TOTAL1 PERSONAL INCOME Year (in millions) 1980 1981 1982 1983 1984 1985 $510 545 559 606 673 N.A. 0083 -0126 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. 'Source: 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. 1Source: 2Source: 3Source: 4Source: 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 BANKS 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 Sales & Marketing Management, Survey of Buying Power. Oregon Department of Commerce, Housing Division. Oregon Department of Commerce, Banking Division. Extension Economic Information Office, Oregon State University. LITIGATION 0083 -0127 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 purcnase 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, which 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. CONCLUDING STATEMENT 0083-0128 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 -0129 APPENDIX A: JUNE 30, 1986 AUDITED FINANCIAL STATEMENT (partial) t t t t t t A t t t 1 -1 M N 1•- Co 0 N M 01 VI 1, CO 01 0 .'. CUM d Ill 10 1.4 CO CO O .0 N 10 d 111 10 144 CO 01 0 .r N 1 N N N N Al 1'1 n1 f•l.......... 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L 0 7 q 1/1 IM f9 q q C 4) N✓ 0 7 2:c22%7 N y0@@t�l� eC EE O C I W 011. 5- 7 a. f. 4- C >'.✓ U^ N C 5,.-W ✓ .30,- W pN O1 0 C O NV. O o.-4,3.--o....3,3.3 00 C q C oe •- 07 7✓ C U p07 7•-0 U •- <L u1� O I1. 1.+ q 7N/04,10.41 V @ V1 7^ 0 01 ✓UV. ✓1L LC t 1. CO CU. N N qC N I-V1✓ RC✓ <✓ L 3- •- ✓-• I c y ✓ O CL-r N 3 9 41 ✓O�-00 0 q c V1 Y C C C O. C D C q U N Y. q✓ O C y ✓ N Q 0 >. O 1� C.- Y. N CL > L> 041 0. O Y 42/.1o5 1 1 gYY N Z q m <1n Y 5, 43 V U.1. C ^O. fSJ ✓~ L 0410.2 CO L1• CC1L 6 Ua NW ^E ON 01 44 7f0VI 4.. V/ 040 ✓0M <44 L1 W✓ %1�770tJ CTy. -q V Y.- 7CYN i..1 .. N U q V q q B 6 41 41- 14 001 01 >, L C 1L CO ^< U 0 L L 9,4 f. L^ q > 11 q 411 D4 q M ✓ C✓ 1✓ O .541'4.55,>41415,41415,W V ..4...)41007,444:00 ...3.45,..44113....5,005,L41 1. U C✓ 1 iCDV1 RI VI RS 101 N w 7q ^ ✓Y +.0 . -CL QQ>,,i L 0 ✓a.- C6GC9. r-C C W L 7 0y OL C C C 7 7.0 3 g q U 1- p 01.0 3> -1 0 G a a. q C 7 C N r- N 7 Y q a 01 q p 0 .e 0 0 q 7 0 q 7.-+ q d 7 q L 0 0 0 0 0 7 0 U. 0 w w 4) Y C 411 F- F• q .-�-1• 0. 6) . 0E G ^- 0 w J J C C 0.0. 0 J J •� 0* U. Z N 1-- 3- la_ 3.) .4 - CO w =aeag.0g7agA7 0.0 X VVVv.n7OYJ.mN O ...00U.04. 104101-.2 0. 000 0. w N Cb 1 DESCHUTES COUNTY, TABLE OF CONTENTS ACCOUNTANTS' REPORT 0083 -0131 ie Treasurer /Tax Collector Helen M. Rastovlch Y I 3 N E O C to 3 .0 ^ OI 0 I 1. o c w Y L L C 0 C 9, Y II i L C U > 0 5 CC r L O 4.I 01 1.1 C V71 VI {I O > CA L. q o i 1 z 0 oy 0 J) yl 1,y X VI N �L1 1. U ;� y0j I/ 0 -I ,0 Y C 0. CI u 0 '0 C II N fd - CI p N u L _ Y t Ts 3. 0 z M Imo 41 L q Y II = > Y 0 L N ✓ < 0 1. IL m N L ✓ S Y ✓ 4.1 N m N e L C N y < • L DI C ✓ !- q RI 44 „ ) U 0 Li p d C Y wO o C T• 0 q c N L d . N Np RI t TG/ Y d 13 ✓ N N 0 RI Y 2 M^ L. OI 7 d 0. It A.1 r� 7 T Y C O N C p C • C V Yd 1. TNYC N 0 •N- d > d an Y 01 N 1. 1) C C L 7 O 00 G 0 . 0Th L, cgO ;E! 0.: r oaioUC p 0. in Vi cV C ^ 0 7 • 417 C 17 C' q 0O.17 . T 0 M n • G> p ��• C Y" G C . .- CA dC C c ^ N 0 o 03 Y. ET egg 40 q ai ,, C N d O 7 c d VO C p C �d Y 6D 0Cd l p r � 1 d ` T A 0 d ' O 0✓ q O O d C. L.g C C 7 p 0.4 E d M 7 d d O V> C V 4a RP ^G N -C q p N p N 0. i ✓✓ p0 y l qY O RI 41 O0> L CC •.O 0) 44 L q^ C q y d 01 C d p yi E Y C 10 6 4 0v L Y Q^ ' O q G q L C O C 1~ — V V - Ot L 0 O C C � O Vg p '.. N O 0 Op.� d q ✓ ... OI n C v 4' 0 O� E Y 'c O. ^ t q p c 0 N d qC d , Y ✓C F d d 0 M Y C y^0. 0 gq V N Y d A0 L 0 0 C M ✓ OIL � C V/ ••• M i d0.V O OYY = 06 L ,r C d.. ^ E dd Y N y N . C .0 7 6 , C 0 404, OCO 0Tr p U�C dS O N� 4 ^Y Nwu+'TC N OI E g Ld Ch ` C_ p gO • 7 d p d 0 N ^ O L O d Y V d E C C p d Y p Y 1q `u .-I sO C` ✓ Y q0 Y p L d .� c O N � N t sow C Y 0 O XM 10 C Y ON J N 0 L Nq C U C p 6 V V C I q Y 17 y C V V 01 d q d g d L y p p y 4 q C c r �... Y V 7 ' O q W g N O C g�.., OY C U.- d' p C 01 . U 4-1 Ye p VpL d C 0Y• L C Q T ( 0 L 0 C0 L OO R- 0 L p p g N 0 0 C d K Y L. E q C 1- N V 40 V C 01 M L p d. d ✓ .� d Y L .0 ., y p O o q O 2 L Vq N c N 4 n 0' q ►. G N � O O C � W d CN O p C 6 c o o 0 C 4.0 0 C f p TE ... p 0 s d C 10 � cTV Nqq Z ( lA dY • am+- 0 a o✓ w C : d +°gd N c 0 N Y C 0 Y q N C d G yy� d N C d N y C C d C ILq W C N _Y C d x O rVN N r �• 0 >• C Y - O d q Y Y 17 0 t d O } d q r .0' >CEd U 0 N p 33 O E V NL C Y -c C ✓ •• dO 7✓ 44 y d UGC O d Y Y ON C C C 7 � 44 �` L 417p7 0�0d q^ t 1041 ^ 14 d V 0 . di•- N L W C C Nr Ir O L L a. IA G L .0 44 p1 q 1- 0 r r q 0. 011- G 0 r- 44 00 4417 4 N 0. 0083 -0132 September 4, 1986 C•f Q 1411 10 1 . CO O1 O r• N el Q .n o n 0 0 O CV 01 10 00 0 N CO d 10 10 10 10 10 10 (0 1.. n n n A n n n nA CICO COCOCO 0■ 0. 01 1 1 1 1 1 CO CO CO CO 01 01 0 T d ✓ C 3 0 C N 1 L.1 p 0 C .— N S Ci r C. C q L q M C y M T N a, c 1 LL ✓ V co .0 an 1 U 7 N C I- d 1 L 1 ^ L 4 d C C 0 r 7 r d O 0 10. C 7 0 F K W y p C q L d C T N d 10 17 4 W > N q 0> C t q d 7 L 3 0 1. M +• t Y U N T L y1 p Y C Y N _ 1- IV !J 4042 Z et RI Z CL IX 44C V1 RI Z .0 US- enc0000t0cci0 Rui DESCHUTES COUNTY, OREGON ACCOUNTANTS' COMMENTS AS REQUIRED ST STATE REGULATIONS SINGLE AUDIT ACT REQUIREMENTS DESCHUTES COUNTY, OREGON 10.192.964 S 10.750.590 mo eo Sr s nft ■ VD 0 • ) . • • 0 k: ! ! | it !_!$ A aa r ■_t ■�: t !a. ;" i !fitr ! "3 ill x■ ` .3. NM J • `aK ■ 0. A ■ § ` 7 82 ft K§ :8 nn K • § § f ■ 2 - - . f ■ $ ! . 0 _ PO tem ■ k 3 ! j A Pt VD 01 i 3 ■ 0. W. k f■ ! ■ 2 2§ 8 Pt K . WI ¢ ! 3 !! 0083-0134 1.. 0 /m 00 00 WC 1 CC 0. 00 M RI E yy V N 0. 4 N N 4 .00 r O 1>- GO .� q q C 4 N 044 Cy01 41 tD 'i W CIC .~- CO Z W .-. Z W W 0. 0 O. V > CZ aC Z 1- 0 W W 4 en O N O W W 7 1.-- CI -4 Z W 4 O La 3C 0 V 0 Z W L-4 N 1J Z W O 1n O 1- 1- W W 0 1-fAZ. 0 S Z Z O Y N S S c9 • D 1W- � J V 4 4 N 1- N 1 1 0083-0135 1 n .. or 01-•• N.+ 01 CO 44. fen N 40 1. 1s 0O .-• 0 NN 0 .0 N .0 I P7 N N OO10 .-.f .. 0 O01 f0 O10 N f 004 0 01 *0..^+ 10 f e•/ CO .0 es. 000410 10001 CO .-10001 en.•.f f3 .. 0. 0 0 en 0. O 0 .001.E 10.001 fOO f ON.w010 f f 00 0 10 ON n CO 0 N en 10.0001*". ..*fl tff .• Nn.+ 10 O.010 f.0 01 .•. 01 0`) el 0. 10 1� 1 0010. A.-1 en01 N OfO *Nt0 en N 01 0 NO *0 f n f ..w .O N 0.. 41 0) N .•. f 01 CO N f en .r 611 M T 1 0. 001 Ofn 011 10 1.. 101x01"100 n 00. b 01 01 N e� .0 Of Of.. 10 010101 fn O e•1 • n.0 O.••*O N 0O at 10 010 0/ N CO 10 000//010 N 000 10 101001 en 1"1100 0f CO N .0f •-• .. 0 01 00'1 f 0101 OON .-. 10."1'70/ N el CV 0f CO A 01101 or 01 N CO N .. OOOes . -1.001 0101'10110 en CO or CO 0- Of 01 f n N .-101 .... .0 L.0 0.1 O10 e7 N O.0O 010101'1 01 .0 co .`• 0. A 10 .-. N es el r. .- .0010)01. -. f • N N 01 01 N N M eA 0. in CO 0 1010 1010 eOn 0* 0 .-. O 01 0 0 .0 to .0 .0 N 0 CO CO n 0 10 .0 Of 01 f e1 10 01 Of f 01 01 01 01 .0-. n1 01 01 01 Co N N CO f r. CO N 44 v r M. 0 en .O 01 71 O en 01 m .01-1 0 N 0 10 001 01 n n O 0. 1011 .ff ^ f 0. 10 tel .ff .^f1 ID M .O 01 1 CO .'•1 CO 1, 01 N 0 .O CO P7 O el f Ca ^ � f f N .O 010.+ 10.0 O. 01100 N 0100 ... 4001 CO e- 00 N N 01 f 'f O.+'f es• n 000 0 I, ON en enN/0 CO CO N N f P7 01'1 f .-. O'1 01 N N 111 O N CO .. f CO O es 01001001. -1 10.001 01 010101 '/01 A f N 0.0 CO f N n 100•'1 en f.-1 O00 0- NON01'110 f 01 .n .0 01 01 .+ 01 N .� t1 0 •-• f of ew ~ ON 01000101 NOf N .O.". 0.• el n N 0101 0 10 f CO 001010001 N .rO f 1-01 010 .Oi N es *or 01 CO f .O '701001 ff 00 CO 0/ On N 10 • •0 01 0/ 1"1'110 CO 0f CO Cr, CO 1O � N N 0 10 '1 en ^ I O 10 0* 01.+.0 .fi 01 07 N 0 0 40 01 N f f 01 N .0 01 f 01 .a 0.1..4 f ^ O f f ... 01 .-. 01 f ` ... .... v .. .r L 44 N 0 OL of revenues over 4 N 1 014.+ C M 111 L N ' E 0 4 ) N 7 C q O L q M 4 C L L 1 N C .0 q q v 0 1 d ON/ C f u 00 1 pOC O ` L .. 4 N 7 N 01 0� 0 CL C 4) 41 4 _ N 11 41 0 >. r' N , L C ..7.. w.. q C X p01 L € U O 4 N 14 4) ..- 0 C 4 4 C >1 yqy N. . 4 C L 0 a CO N N N 4- V W L N 441 L r C 401 4- C 4- 4. 0 L L L Y-> C W 4 4) 4 7 L 4 01 41 00 0 C 0 H oL 1. N q li > L. 114 0. 0 4. 7p- 1H •C v t2L c C 4. >L v l.3>1 4) 1V*CC 0 4* 0 °c L M 4 0 4 q 0 4 41 - C q 4^ ^ N C q q N U .0 4 E p1 L L .0 alt.. O.0 010. C N q 01010 LNq 01 0 q N q 4 0. C.+M 0 01 1 1 1 1 41416 0/ q 4 0 N 0 41 44 11 .J .0 O> +• 01 0 X 4 0 0 0* 0 1441 4 41 ..1 '4 C 0. L 1. > L 0) N 1- 41 L L q 4.. r 44 L 0 4. 1 W C C C 1- W 0 C 041,146.41)0100446 1.4.4 4 00 C ^ ^^ 4 6 4 q'^•- X X V g M L O• 41 7 7 C C 7 7 q q N +• F. 64+44 q q N .- q q^ t C F. 4� ,Y U +f 4 4 4 3 0 7 4 M 1.6 41 41 0 0 1- 1- J (. •-• C0 CO G7 L Y. L L q L W V d 0..0 L 0. G 7 0 C 44 g 4 J •C"• 0. V O 01 0 0 C 1 .6 > o O u7. W X W 3 Y Y Y Rw g pagaa s 4 lisqzq Rz xs sr. I ( ril.sss) (I.534.460 food Mlfnc.. IMO N per a Y r r E i Y II; g i 0083 -01as 1 O. L N N W C C N O M ao N N u ▪ b W C M C RI C 1• Cd ad Qq M 6 u 11 DESCHUTES COUNTY. OREGON DESCHUTES COUNTY, OREGON ) N . C a ▪ N NW • CO CO .+ 0 • 0 N I11 • Al v W j• " ^ E M M r► • 0 o a L ^b .. N 0.) 0• IT n 0 N b n 0 W .. Al N O 0 N .+v I o c o Al Cl 0 lOo 40 0 N � Z y 0 CO .•r 10 C N CO • Z ..... ..... ,.I O N M 40 v VI In N .... u� v W ▪ 0 Af N WO ▪ Oi 0 W O • • N Li L r yyS N O 0 J C V r L d I C M > 7 S. N � n N N M N h _ q G q 11 V ON W^ N N r 1S - v CI W O d C I W LL 7 7 LL • A ^ z C ^i0 Z d M • NZ �N 0. ^r �+ i10 PS N M 10 .-. tr N ea N b1s0 O . A C ▪ ..v 0 ▪ W 41 61 q N CA CC 10 .0 I S Fa- C O C CO C) W W O C U. CC IL. C.. 0 O 0 ZC.. a Cd I yN • XJ 0 V CL to 4.2 • r V d nlr I. U. ^ > 1 001 VI 0 44 _ C 0 L M C ` • " • d 01 0 Y U 0 _ 0 1 C q W n N .O. 0. 10 6 d �[ ▪ w d d et ^ 0 N. r.d.. 10.0 0 L RP V y F- Y .•O•. q q N • ~ L L 0 M C 0. 0.•.- j N 1 d O d u 1d. q j 01 r-' Y 0 10 7 C..1 C dE L A • U IO Cr C C N C• d• d q C J/ 8 n u q of QQ • E 0 0 Q"Q y uy L 00 V 0. .. ONyy00 OI RI • 0 C Or.. • N dC L. SI • 'S d^ I C C C n Y • q' q C.I d o 10 N q C .. V C 0 M 0— • 0 L • d•. .0 q N 7 0 7 r-^ •• • 0I d 0 V d o n O M Y V L L L d V • 040 .t_ 3 C C O • 01 d 0 0 10 IJ 55y 0 U G U d d O y3'... ^ NNI C L. Cl t. I-. ` C . • LO C n L01ae 7v 7v .7 t0 v L1 • 1A N .0 Z W C. CD N• X Z W W • O. C • CC H Al 4/1•C LULU 0 d z 0 > > W W W - W • l.- V CC s• . 0 W W 1•-C O CC yW I.- Z CC L Z • 0 10 = N CCCCY 14.11.4.1 0 • 4 Z J 10 1•• C J U In X sC VI 0 U LL Lai • Z CO O U 0 d 1. d • .C. H C ✓ t r d U M 10 U r C Y • I- • C > • >1 7L/ N I Z Ia en CO 10010 N n AI A A10 0 n 411 Ill N N 0 N N IO 1O Iff Cl A OI t0 01 .... 1.. r Al IA • 10 1.11 — .. 10 A 0 CO 10.. Al n W 411.. N W • 40 Al PS 0 • 10 co • • O ION .•. Al In 01 W O. N 01 ... ▪ Nn 0 .0 N CO .-. In Al W 0 N w ti W N CO CO Sr 4.4 . es . ■ M M Is AI 0 0W 1014.Al00 all 01 0 0101 Cl Off.-. el 0 01 01 01 10 VI ON AI AI 0 .• .. 10 0110 01 n N In 04 el Al OAl.. In N Cl N CO PS • 0 In n N .-I 10 n n Sr Cl 01 AI N I, M N 10 • CO UI M 0 Ul 0 O N N t0 N W 10 N AI 10 ▪ 40 40 4C1 CO CV 0 t0 Al O O M O IO O • N01N el 114. 441 W AI • 10 (15,252) 4,987 211,836 a N ref 'Al 0 .•. 10 Al 1, 0 0 0 1n 0 s: 442 W 001 40 010 ^0 N 04 0102 10 10 0 r... sr V M Cl Al Al 0 0 .•I 10 WIC ON 0 ..I N .. 0 .'I N 0 e 0 0 •■ .. Cl A11S N In 0 N N 001 • • Inn Z C0C CO m 10 10 010 '0 N N t.... M d d n /C IA d OA N 44 U as z.o uo C p 0 N W d L • 7 N CO N • U d d C aC� .— } C..- .- N N d N p 0. q L 3 p>l c 'C n 0 •0 c^ C O is i L 0.10 n N E� C.. •� C IC 7 y N M C O N .0 .- as N N C V T C. r 10 0r• q d O C d q N4 d^ N 01• d.0 RI 44 E E VI U 0 L'0 10- C L. d d.l. L yr 71+ O n C .0 •• 10 .0 4. d 7 L• Cr •.' L y d LiX L V/Or Y.0W V)00 CC a. 0 Total operating expenses (104.669) 936 ( 4,987) (108,720) 0 • ▪ ▪ 10 n • Al CO • 0 • Al 40 A! 0 Sr ."•I 258,252 (49,638) Ed q V u d L d C 41 0 M • q 0 q M • >t 3 CT 3 3 K 0 C 413 5 L N ▪ v N 44 u u 10 d d L q C O 0 >t ✓ VI d • O C 0 N C • N O C' L C d N C CI C V M O N .0• d C u c c L.0 CO • C O1 d �. M C ^ n q 1 0 1 • N+ 0 /C Ed d 0 C L L 00 0 .' 0 V N V T ▪ d d L. 1- U d w n • d C .C. U L C C 0 0 • 0• d C^ 1.1 'S d w d O 0 v z Z X ¢ v M S 375.684 5(63.954) L n L - N d C • C gd C q 0 M N 0 0 • N U CO d C O C C w CI C q C L Y CL g O 0 O 1 1 1 1 1 1 1 1 0 L d d O > en 9 �p 1 Wy E6E M ■`N1 d q t d O 4, L V q 6 N Oi r ^) C LP ... c Y d C L Y N^ N Y. YC N N .o N L 0 A C 0 L. t L j N Ny ~ ' Y- CO N N L L N N L L 'gy~ V N t yp C r M N Y q RI Y ^ V > L 0 L L q yy T C • _n Y TIfy Y> Y A NYU q O 1-3 1.) 09, 1 O N q - ' C E C C 'C C p T Y d N U O O ^ 2 C g q t Y .0 dp N O Y VI 7 ...L 9 = c g t • d N N p d L p q O . • C Y U OW ^ N q 24 y O 0 O Y Y- O N ~7 ~ O � 0 E.01 V V ^ I O j m .. 0 C N q L n 1 E L q L�q M p _ q 17 L , N q E nc d t og " N V Y N Y C .- d L M M a E C O Cyy C7 t q 7 N.- Y p LLN y W d �ad E O, O = ^ d OI Y �Y E 0 Y N ^ • 0 C C ° - N Y 4, c • X q O r N n q , .•. C Y q W Y V I..) YtV t N Y 1 M P C Cyp 9 C E, r L p L q NCI •YO>+ 7 7 09 41 +d Y d Y Y � y N C q C C 7 C � I- pqy L0 N ° q6 C Y 7 d Y- 2 4 410 = O t 4' L Y Y 7 N o C O L W ^ U C q n In U >• Y u L d 0 X- W 014.7 9 0 Y L 0 O q d W 6 < Y Cgq O I- C 41 tt U leM V ^_ L N OP= y■ 041 C Y° N L d O> Y 4° � NYL C ■ q O I RI 00E N Y N p `>1 LU O J >•NO v N^ 7 L qJ C Iq 0 C Y 1•- L Y L y° U 0 L d Y Y U30 .0 I. Y E Y C Y 7^ C Uy 0 V O T L . X M C N ^C U ~ Y 0'9 OZ P C ^n 'O N C N L. y L O Y^ Nq W C WJ S 4N d .. °, N L. � d 4,' t >I C0 OW C N=L Y oN q M Oy Y d CN C g N O Lw Y 4,MV .0 Y 1 NQ cc CT d 0d0 -O 0 Y OV MLL > Y tL T , °O Y 0 241 `.0 LL 0'} j O. 4 O L 3 1—z i -Cp N a p° C 7 C 2 y 7 L Z. q . r m - t G L d LY Y 4, Y a > Y O� OD U 01 0 y� N N O N C N O N N �H C - p p N� L � L E v ^ CC .- U L Y 04, N VI 9 T • .Y d LL C C V O W 0 ^ N W y M ° N 41YN VI Y V N N L L U- ° F- 1- 0 ••• C q .0 0 4 'O ••• .4.- 7 q '■ Y 0 0 • a N Y 4,C Y Y FY Y U p q N EE Y UO C._ tB WqC L. 1V V I L t O. • - • C W y d Y . - Y Y I C Y Y Y 4,10 0/ OI 0 -V q 0 9 N H C Y 0 > O d t X X Y 0 C C X X > > L 00 C C U .- C Y 0 .1- N W O 7 0 d d > L • N X d 0' N C C q M..O•i 0 O N d.0 7 0 t C d C1 Z '9 Z OC 4 qY O. 0. It Y 41 GO 4.3 U. U. 9 •'+ •- E 0 J J.- L Cu. I- ........ t C Y •- C - N 00 E E q N C �y M Y q N C N ° ■I C n= .0 2Yq U p N Y 4O 01 d 0 C 7 N Y C C II-p o N ^ amU p C d d Y 4 Y- Lt 0 O l d N OP IV d d ' d • U 0 0 C 47 L. E d C U M ML N d V q Y Y Y Y V ~ ~ 7 M C V Y C N 0 , N d L 7 o' n > OI C O , y 20 L N +y d U7t U C� ON •I ICU 0 Y L I I U C 0 .0 9.. N SSY CI CMN °'' 1 • O g M y O d C d 4, •� C C O. Y- 9 N q ¢ ` L0 L Y& 0 C3 q qq'_ @ N 6 q q NL .� L C 7 O >0 Y < .— 9 U p Y C C A N = Y • G —$ d y N p YO 0 q L q q vv E Y O d C X ..- 0 Y CI L N N 4, U C d G 2. y Y d n� Y d W T N r L L w X p d N U UL L L C4,VM W .0 0 V G Y 9C� Y fo IC MC_YI q n "' N s ° �>' ' % ° C n IA g.0I v p 0" C om � C 7 Y E .Y Y 0.r. Y N 0 D L Ne L" q L C°L S C q O .2 l C C p Y C N L W O 9 C p d 4 U S , N• N• U N N0 Gam. H 0 Y.^ C q N I. 2 Y W W $ «Y L a _ E L. 1., C u «gYN4, C 0 : . E o N O 1- N 4 q $ p 000 U Y CO V d 0 C U N1a N N d G • � O r X °° ° Q C ° 410 ...m L y . Y r .O L IU J Y U 4,1 c p 0 4 N ^E ON ^ Y U �1 ' M • Y N Y IC 2. E Y Y ZN . Y v .- 4 C ° 5 L z _ C . q r L C d L .O 0 O /l Y Y ~yy Y o.g0 O CC^ d E DY yW YCS U a NV■1 > Y YO O U L N Nq G Y qY V O C 0 d � Y + N W C 9 0 L E q I L q q 0 Y C 0 t O U f N C 0 L 47 O. O 0 C . E p Q 7 m U LOU Y d O N ' q U 4 C U q Y p ^ 1.• CL d7 N 9 q pp Y C Y q0 d • U q i L 1d MNu Y C 2"z E Y- M � g q C O. W C d Y N q , 43 al IC q F an O O ■ N U-. Y C > O L C C � C r- U C 1. OU ° d q '0 L 0L d C 0. V �$p YL E.-- ) ° ^ 4,g7'� C Y.Yi OtNYN O D q E Y um, >I L p O 7 •. Y L r q N U U L W O t ~ 07 Y N 7 Y N Z FdE ni 'n yd .. • - 4300 -c • L Y E Vy L > C ' C O q QN p C d • 0 q Y4 n U Y N C E Y 9 d C 7 0 C C m 4-0 Is L N Y u Qd C n y O ~ 01 U C ^ N C- q 741+ d L y C 0 OE 4 O . q L U° N q al q 9 C J C Y d 4, C L L Y L. Y N q p 0> Y Qpp p7 O 7 L 6 N ° •-• U E O y V N Y C L 7q � 41 '° c- C L , N O C n W d u -.O M L C. r- N N 70 ""' U N Y' co n L C •� ..E W 11 �e N Nd L r N p > O Y N L N 99 d >sL n Y N C- .c ••.• c 411 • '6. d Y p Y d T O ■ p d d ,•,,- ° r 0 O Y d Y O 4, °r dr N Y Y Y N Y N > �' Q L Q 0 4, U Y d U NC N 0 Y 27 9 "ccgug W L L 1 L L � L 8 C q 0 0 ■ I .- L L t L WN U N U > Y Y 9 d Y N Y O n O a 44 U q Y U U d Y. T O Y Y Y d d C N N N N L. N L> d _/ L o i m I-0 d H2 L IE q u H4' O -` d I- q0 F -O.00y p y O F- L 24 F- v. V C Y C 0 W x W I- 4.3 W Z O 1► 3- W z- m 10 0 CO v C at U.• N CO 1- O1- O = H no N 1- C Lo/ = v c N 0 In W s I- H N -I 7C C .<. CD .0 CC O 1I. o Y W Z - m .0 CO U0% GA VA I- 0 Li N 1- 1- C La 0 CI Z - Note I - Summary of Significant Accounting Policies - (Continued) Note 3 - Property Taxes Receivable Budget Policy N C q .- T V V C W 441 N 01 V u 0.0 C 7 0C C TL Y w N C 1-V Y Yqa L V V N' C V u L L q 0 O N O u W n. b • L C F V n Y Z D • 01 C... qT V L 'a 7 I 44 44; C V q 00 E Y T N N w 2.0., C 6 t Y at N EON W" V c V ^ WN 0 O s p Y 4 E u N L' aC C C Y^ W 2 C iq W N 7 r u N L . Y Y V ..2 .c N u Y .r L L Y L Y V° c V C C..- • . L V 44 j O O g oI- 0 = 0 . yY E u C Y V N 7° V O g 7 0 y w L V L q C X T r 7 r• T w Gt W VIM V N QY Tr W L. 0.a, CL gywYY° N r ' u w u LT W 44 L. C L > r. W4 N. y u MO = u C .r w = r W W L N M 0yw V."2 L. > >1O 70 C° 0 L C N.r N c 0 L 0 V 0 w d .v V VV • pNN .7... NVY' 0 2 L m q .r C r w I. g O Y 7 44 4 A N V .O a Q T 0 M r ° L V r u L L V •7 O E O O M y r 41 15 O yC N >N C Y V C T r q V E. OY Ow - q 44 0 L. Y V 0 V ° V..° Y ° q " 0 C q C q Z W T C G C MI 7 q .^ V ^. w C. L 0.1 Y F- W. T 2 c. L g L 03 Lp u w W X O 0 Y L M u .0 010 co, v 81-15 .. N y • °,- 2 C.0 u V > 0. O L O U. ^ L L u .0 u se Q q 0 ;UL n ,Nn r . VI > N N C C L 4.. W L W X Y V V N r Y 2 W C -. X V X X q W <O >.0 E L N DYq- vl"' 0 u ve C 5 .T• C 0 1. ° N .0 E V P.' 'T+ V T 2 •- C r C 0. Y 01 R N01 C q C. 0 C 0q.W -LC C O CCO COO C F- U Y.. nYv- Z 0Y1-1 =W. 7 CY ..► . 41 0< • V .0 Y. i[ C 0 L I0 a. ; O LP V C O I. u�W N 741 .-a w0 •0.4q u >W 4'W qE 0 L> 0 u n W N .- � V C V N V u V 0 0 2 y 0, 1. 7 W Y V'r C 0....... v t C 1-2 q ~ 1 3-- W 0-.0 u C 41 44 .0 0 ° N r C C N w q T C g OY w 41516.4111-45......0 L O Y Y WN L .0 W 7 ...... E N w wE rr .4.06. C V.T & V O w N D. L. N E q W C D O a 7^ < V >% •WC N n dN • O.� 4li 13 41 .g • N W t w yy w C L CY W o ^ « Y 9 0 ? C C 0 L. N 2 Yv 1.0 O C M C u Y O aN Gw p V N ` w L W V , L 0 u 4.. 44 W L • N V V L ° >V °U .r L q O " C 1 ya C o c w •••• 7 w N r X y O I. 7000 C C rL►.EO n n r m u 44 .0 n+ 'y' IM u w V C 7 L 1 g V gL N • q C S .w 1 L M VI L o. N C r q U° L • 0 X 01 O L N '••• Q V W wuyr ° °C N 4.0 n._ 7 C01-Vi 0 Y 12 w w 4. 0 .0 V *I V .. L a. G p. O N r w0 Coo, CL C V 7 0 0 O. ` y a1 O ow= orYV Y r T C V C Y ~ C M E C C 7T��L O. W n,. V U 0.- Y . L. > V. 43 V- N L 0 +- Y Vj Y Co O. •.• C L V Y 01 O. C jOO C V O. V IS 0 I- s.-V -UYG 6Q 0i414♦.1..>>, its funds on the modified accrual basis of accounting. The County budgets Vacation and Sick Pay Note 4 - Accounts Receivables Note 2 - Cash and Investments Note 5 - Special Assessments Receivable 'W.. q Y C 0 ° 0083-0-39 W W C L V O Y C Y .0 L� .► >w1 CO 0Y 00 at 0Oo O d Y C .�. t{ _ O O N 01..V. W C Vlf :..� {f1 10 ool . V > n ^01 u°Di V V 0 � L. N CU C C > Wr.0 M M Y W . MI ,- Y 0 al Y C w 0 C .7... w m SI 0� °V >f at V N 01 O. at 12 el 0.0 0 L oen o V at Y L N O C V ....... T 0 u _ a at W _W 01 IN 3 1‘° E w O. 1 L > u 17f q . 6. Y 0. N V W N p N U C =C N q Y Y C w > c C � � d E d E q r wI�V N U Y W1 Y d1 .0 .1.0.- 7 V E L W E L N r ° 0. .4. 0 V 0 r N V E u w E u Y q V V L M q N I- V Y L E L V > ,, z Y V 0 • N U t N" 0 N • L L Y u 0 N N p N O 0 VI N N O C_ < N Y.F L.0 O; o V N TC i'3- u N L"- ; N V 0. N W L q N W n N Y N O 7 C W V N L O L < CI. CL u q H 5 U) C. 0 .0 CO I' CO 0.1 I.f1O ..1 10 1s. 01 P1 < 10 00 N O 0 V • .�.1 ..I 00 01 M M• C 7 q c s , N W ... N at SI 0 w Cash and investments were comprised of the w 0. L u u o V N 01 Y C N N..- L W C Y O w O. -16 V C u W C C E O ua. w V w L .0 t- .4 w CC W a Ili 17% r C E W Y V N 0 q CI Y N VIN C 6-17C41043 0..0 C C W V O O+ C Y V L V LLZC• V G . L N N E r V U 1 1 1 Note 7 - Bonds Payable - (Continued) Note 6 - Property, Plant, and Equipment Y •r. Y v CD -L 01 0 d O. C 0 •N. q • 0 N .+ C r Y L d L H N .0 Y ~ .0 • 8 q . ' 4.1 as co O O V L d C N q Y N a N Y ac O at O >10 • q C 0. N V d 0. y.0 yL q L •1 Y d v q L C41 C N Y moo A Y C o . .CCO w - C S q~ .0 0 Ya O � 01 O'er N•.. NS L COC .0 0 08 O OI 1../ C C C 01 as 7 L N d for the General Future maturities of bond principal and Interest are as follows: a General Obligation Bonds Issue October 1, • L C p00 O _0. O O 00 C V 101 In O O C a at 0 L 0. N C O C P1 W L q -O 0P1100v 0101 CV on P1 0 01 or CO Ps sail o1 01I1 ST 0 01 P1N010 /- N 111 4.• u u • C q .11 > L 0. . !1 ` O 10. 3 O0 4 0 N 100 ..0.1 N •• In .r 0.110 - O. v N N N - N 0 N q • at C q L aft Y v > 001 C O C N d Y Y B E4I 1 am. C q N g .! 0 N =E O 2 d M u go_B. > -� q 01 7 yq *. J 1.001 CO 0 00% 01 0% tal O •r In 01 N Balance June 30, 1986 S 16.614.796 $ 379,553 S 756,682 S 140.000 $ 10,727 Note 7 - Bonds Payable Bancroft Improvement Bonds, County Road Issue October 0001lnooa 10 U) en CO 0% Cu 10. N q In 0. OOl..ry ♦1 10 10 e- 10 e. e. N 0 NNN NNN 10 1- 4., Y r e° L •1 W d L 7 q ,7 N N CO el 1.11 l-v.1 N 0- 0. 10 N P1001NP1 NO010 N -I 0 0 0 0 0 0 0 0 000000 0 NIA N1n C4 0 .v. .1O+07NNN 0 •.• • •• N N 1,0701 C••••04 CO CO CO 0101 01 01 01 01 0101 01 Bancroft Improvement Bonds, County Road Issue, October 1, 1984: 0083 -0140 101.. 0 in CO a CO P10. 001(.110 101 b O N N f P1 01 q O N 010•+ N IO .• ��r-��(I' P1 0 f•1 n Y C N 1 41 1% 0 01 in %01.01 CO IC Y1 N 101 v e•1 01...0 040 IV SIP P1 01 01 N 101 M - 000000 1_G� 000000 OC qOv Nlnm CO L 0. N C • el W Y L I. • 7 S • Y u g L O L V OQd qNN 00p0 D.+ N N 1Ia 0 Y 000 CCU L - C O V w ~ N O N 10 2 v N �C .r L d O N O 4- !1 O q • as 01v O w OT^ >.. 0L 0 ..1 0 00 • Cg1L X C �111.+� v yNC1 0°0 00 C I~ ! S. S 2 • d IC In 01 N • O1C K u p a'4.1 1 3 O N N w • K 4P4 CAM Nv w= M w �� 0 M q= IA T0 .1 C IC O O L q C N 7r O1 C�� o w C -. N .1O.0 L N > d 0 N M O N C~ L 0 0 0 L • 7 0 • L. q L q C LA C Ed yy pdN 1712.2 Y M y01C • ' co 4.. c O~ 3 O N 10 0- C 0 D C L >%M O g . 5 at •M ups 21, 2'01 0� Y. 0 N I0 an OCOLI "yLg'N L 01 CI y1Q .,L uM 0 q O ♦1 F4:41.6 0 a. N .-1 tiED dE Y M O1 C 0E17;2 ...... N OS Cu .0i o q •, 2 > agSC� ~ N B 10 C q 01 $ '- 1 v Y N N r 0. } N C^ O .. y L L q v C~ q~ C m d N7 M _L1 �1 - L D C u L L q N !%,- .- q N N 0 as o 'I -v.,� o agg UIn X LL d,- u0. 0�� pN 00 O CO L d 0 0 C L d d C 0 CO g01+i, 4m1dn0.° •oa . n 0010•+001 00000/01 1 01 0101 01 01 N S 3.350.000 S 3.210.000 - June 30, 1986 Bonds payable 0.I N • O N 0083 -0141 V Y w ." • Old • N CO.-.- VI - L M >. L M • d° N L O C 0 0 0 N VOOSCrYC"- rYrr YVIO 0.-d C LdA = U L, U 7 C 00 d C C p1 C L O C O S q 7 C Y.0 �Y Y L 0 tJ 0 IL r C 7 ° 7 7 7 d V 7 E 6 ° =C ,•,2.14.1 >• q L 10 0. W.... Y N d p L C d V A r d >+ VA N °€ qN ++ ^>•N E>1yUN . X° 'mod na ^�' in m Cm0,00‘...... 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EOVpO L - dg 4A 6 V s yT Y r 00 d C 0 „ el O _> 1'- U 4.6 C 0 C O dw I ` d z s V w L W N y OS 7 C ` Q y N ill, v S u N S • 1 °d l N .- q y L q M • C U u^ S H M 0 17, .0 L. A N 7 15 E O I L N w h y I N NN CO N K C 1 L C 1r 13! N N 0 • r • 17 2 3 M1 M v A CO N '- C = U 3 w U d d w I r C 1512 Y C.o. C• w N N O EC.' n IL w ♦I C IV n E > N ■ L 1 w. L C O C N d N... O O Ca C .6+ O 0.... I yr 017 L • C 1 O. C 9 C C • O > N > q N q w s q O C N > 15_L C 0 °d O W 2 0 1' > U w C y 15 y 4 C w E O L O N a L L a+ O O W -O N 5 E3 C C 1` w O 9 N > L. C C O > M V A L i0 M N M WIw ° ,N C u dni NC 7' 15 w .. 1 L7 !% w W L I I-. 75' U ./ Y ■ A y C ny C C v C C C n N 7 L L b M A y d 7 n CO ..0 1- 1■ Co N 1.- C M O N L O Z ^a Z I I * I I I I I I � I 0083 -0145 APPENDIX B: DRAFT LEGAL OPINION ABS BUILDINO 2.4-18 KUDAN MINAMI CHIYODAA -KU Toxin 102 JAPAN (03) 239-2815 2011 EYE STREET, N. W. WASHINGTON. D.C. 20008 1202) 296 -0006 LINDSAY, HART, NEIL 8C WEIGLER LAWYERS SUITE 1800 222 S.W. COLUMBIA PORTLAND, OREGON 97201-6618 TELEPHONE (5001 228-1191 TELECOPIER(5001228.0079 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 -0146 JEFFERSON PLACE 350 N. 9TH, SUITE 400 BOISE, IDAHO 83702 (208) 008-8844 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 LINDSAY, HART, NEIL & WEIGLER Legal Opinion Page 2 0083 -0147 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 0483-0148 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