1998-43393-Resolution No. 98-106 Recorded 8/14/1998_4' 168 2811
98-43393 aUNSEL
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COLW, WEGON
--5rr
A Resolution Adopting the Preliminary Official * -< -0
Statement Relating to Deschutes County's *`-' z 3
Issuance of General Obligation Refunding
Bonds, Series 1998. * r` c n
RESOLUTION NO. 98-106
WHEREAS, the Board of County Commissioners authorized the issuance of General
Obligation Refunding Bonds, Series 1998; and
WHEREAS, a preliminary Official Statement was prepared for this issue by Seattle -Northwest
Securities Corporation, the County's financial consultant; and
WHEREAS, the preliminary Official Statement was available prior to the offer for sale of the
General Obligation Refunding Bonds, Series 1998; and
WHEREAS, the Board of County Commissioners has reviewed the preliminary Official
Statement and finds that, to the knowledge and belief of the Board of County Commissioners as of the
date of the preliminary Official Statement, the preliminary Official Statement did not contain any
untrue statement of material fact, omit to state a material fact in light of the circumstances under which
the statements were made, contain any misleading statements, and that the preliminary Official
Statement is representative of the financial condition of the County and the Issue; now, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, as follows:
Section 1. That the preliminary Official Statement, marked Exhibit "A," attached hereto
and by this reference incorporated herein, is adopted as the County's preliminary Official Statement
relating to the General Obligation Refunding Bonds, Series 1998.
DATED this 1q day of , 1998.
ATTEST:
Recording Secretary
PAGE 1 - RESOLUTION NO. 98-106
BOARD OF CO1 VT�Y COMMISSIONERS OF
DESCHUTEStO)JNTY, OREGON
EN, Chair Sk-P
799
RO$ERT L. NIPPER, Conidifssioner �o
l/ KEyp N
IN A L. SWE ,Commissioner
08/14/98 FRI 10:15 FAX
P"
0 002
u� // 1 6 $ " 2 812
DRAFT DATED 8/13/98
PRELIMINARY OFFICIAL STATEMENT DATED 71998
New Issuc/Refunding
Boalc-Entry Only
Moody's Rating:
(See caption "Rating" herein)
In the opinion q. Preston Cates O Ela LLP, Bond Coscnsel, under eaeimkq land and arc:eming compliance by the C;ose" with crrtaein tax
covenants described herein, interest on the Bonds is. excludcd from gross income fir federal income tax purposrs and is not a specific item of
T= te+c p1 efty curt f yr pusposrs of detcrminin the l rtlterrsateve mtntmum trot irnposcd on individssalr and corppratiosu. In tfic f:sriher
n Bond C:ouruel, interest on thr. B :s axcmpt frmn pruasi personal incmne tris impost -d lry the State �{'OnEon- The Coumy
bias not csignatrd the Bmsds ar aelua�ed tax-exersspt nhl43ationsp as definer! in Sreiiora 265(b) (3) of the lntcruaCFtrvrnsee Cndr, of 19F0,
rxs amcasdcri (the °[lnclep)- See "lax rsption" herein,
$550155,000*
Deschutes County, Oregon
General Obligation Refunding Bonds, Series 1998
DATED: August 1, 1998
DUE: December .1, as shown, below
Individual purchases and sales of the Bonds may be made in book -entry only form in .minimum denominaticros of $5,000 within
a single maturity and integral muldplcs thereof. The Bonds will be issued as fuilly registered bonds and, when issued, will be
registered in the name of CEDE & Co. as Bond Owner and as nomince for The Depository Trust Company ("DTG"), New
York, New York. DTC will act as securities depository for the Bonds. Interest on the Bonds will be payable on December 1,
1998 and semiannually thereafter on June 1 and December 1 of each year. The principal of and interest on the Bonds will be
payable by the County's Paying Agent, currently U -S_ Bank Trust National Association, Portland, Orcgon, to DTC which, in
tuns will remit such principal and interest to the DTC Participants for subsequent disbursement to the Bctuficial Owners of the
Bonds. Interest on the Bonds shall be credited to the Owners by the DTC Participants.
Maturity Schedule-
The Bonds arc subject to redemption prior to their stated maturities as fiuther described herein.
The Bonds constitute valid and legally banding general obligations of the County. The full faith and credit of the County is
pledged for the punctual payment of the principal of and interest on the Bonds. The County has pledged and is obligated by law
to provide for the levy and collection annually of ad valorem texts without limitation as to rate or :unvunt on all taxable property
in the County to pay the principal of and interest on the Bonds. The Bonds do not constitute a debt or indehtedness of the
State of Oregon, or any political subdivision thereof other than the County.
Tho Bonds are offered for sale to the original purchaser subject to the final approving legal opinion of Preston Gates & Ellis LLP,
Portland, Oregon ("Bond C:ounser'). It is expected that the Bonds will be available for delivery at the facilities of Tho
Depository Trust Company in New York, New York on or about September 9,1998.
Tlns over page contains certain infrmnattion For quide reference only. It is not a sammmy of the issue.. Investors must read the enin
Official Statement to obtain infmnsatson auce t l to the making of an informed i"Monent deeis .
Preliminary, subject m change.
Dated -
Seattle -Northwest Securities Corporation
Intcrest Yield or Interest Yield or
Due.
Amounts
Rates Price Due Amounts Bates Price
1998
$ 55,000
2006 $445,000
1999
30,000
2007 465,000
2000
35,000
2008 490,000
2001
35,00()
2009 515,000
2002
35,000
2010 540,000
2003
380,000
2011 565,000
2004
400,000
2012 600,000
2005
425,000
(Plus apUued interest from August 1, 1993)
The Bonds arc subject to redemption prior to their stated maturities as fiuther described herein.
The Bonds constitute valid and legally banding general obligations of the County. The full faith and credit of the County is
pledged for the punctual payment of the principal of and interest on the Bonds. The County has pledged and is obligated by law
to provide for the levy and collection annually of ad valorem texts without limitation as to rate or :unvunt on all taxable property
in the County to pay the principal of and interest on the Bonds. The Bonds do not constitute a debt or indehtedness of the
State of Oregon, or any political subdivision thereof other than the County.
Tho Bonds are offered for sale to the original purchaser subject to the final approving legal opinion of Preston Gates & Ellis LLP,
Portland, Oregon ("Bond C:ounser'). It is expected that the Bonds will be available for delivery at the facilities of Tho
Depository Trust Company in New York, New York on or about September 9,1998.
Tlns over page contains certain infrmnattion For quide reference only. It is not a sammmy of the issue.. Investors must read the enin
Official Statement to obtain infmnsatson auce t l to the making of an informed i"Monent deeis .
Preliminary, subject m change.
Dated -
Seattle -Northwest Securities Corporation
08/14/98 FRI 10:16 FAX
Nancy Pope Schlangen
Robert L. Nipper
Lindh L. Swearingen
Michael A. Maier
Richard L. Isharn
Marty Wynne
168 2813
Deschutes County
Administration Building
1130 Northwest Harriman
Bend, Oregon 97701
(541) 388-1412
County Commission
Ghur
Commissioner
Commissioner
Administrative Officials
County Adminisrrator./11crsomicl Director
Cotuity Counsel
County Finance Director and Treasurer
Bond Counsel
Preston Gatcs & Ellis IAT
Portland, Oregon
(503) 228-3200
0 003
This c fuial Statement daft not cmutitate aft o& to cell the Bonds if; any jurisdiction in which or to a person to whore it is unlawfif l to
make such an offer. No dealer, salesperson or other person has been authoriwd by the County er the Underwriter to give any
infmmarion or to make afsv represcntattons, other than those contained herein, in connection midi thr offering of the Bonds arid, ifgiven
or made, such inf"Utioi or representations frust not be relied upon. T7x issf i»matwsz set fvtth hereift has been obtazfud frv%t roftrtxr
srbich are believed to be carrent and reliable, but it w notgttaranteed at to aeeurary or emnpletenm by, and it is sant to be eanterued ins a
represerstation by, the Underniiter. Estimates and opinions are included and should not be interpreted as statements of fact.
Summaries of documents do not purport to be cmnplete statements of the provirons_ The inf r oration and expressions of opinion herein
are subject to charge n ithout faorsce, and neither the delivery of this Official Statement for any rale made hereunder rhall, under any
rircomstances, create an implication that there has been no change in the affairs of the County since the date hereof.
This 1°f elifninafy Official Statement bar been adeemed final" by the County, pursuant to Mule 1Se2-)2 pt.nmu�ated by the Securities
and Exchange Commission under the Secufitiet lizehanye Act of 1934, as amenderi, except for inforntatson nahtcii is permitted to be
excluded frorya this Preliminary Of f =1 Statement under raid Rule 1&2-12.
In connection with this offering, the Underwriter may over allot or effect transactions that stabilize or maintain the market price of the
bonds at levels above t{iose which mig{rr othermire prevail in the open market. Such stabilizing, if commenced, may be.. discontinued at
am time.
08/14/98 FRI 10:16 FAX
Table of Contents
168 2814
0 004
ii
Descriptionof the Bonds ................................................. ,......................................................................................
........................
Principal Amount, Date, Interest Rates and Mattumes..............................................................................
OptionalRedemption...........................................•-•..............................----------..............._.........................
......1
Noticeof Redemption of Bonds----------------------------------••-------................,,...............---•--..................._.........
,,...,.........................1
Paying Agent and Registration Features ...................... .........._........,.,.,...............................-_.
... ,. 1
Boole -Entry Bonds......................................................................................................................................•---..........................2
Procedure in the Event of Revisions of Book -Entry Transfer System.....................................................................................2
Security for the Bonds........................................................................................................................................
Refun.�Plan.............................................................................................................................................................................
................ 2
.... .........
Purpose................................••-•-••-•-•--•...---•-•--........................_.........,...........,......................._..------•
...........................................
Procedure..................................................................................................................................................................................2
Verificationof Mathematical Calculations ...............................................................................................................................3
EstimatedSources and Uses of Funds ..................................................... .................................................................................
3
Authorizationfor Issuance................................................................................................................................................................3
CountyIndcbtedncss...........................................................................................................•-------------------...------................................4
DebtCapacity ......................................................................................................................................•---••-•-•.............4
DebtPayment Record..............................................................................................................................................................4
ProjectedDebt Service Requirements......................................................................................................................................4
Summaryof Overlapping Debt................................................................................................................................................5
OutstandingLong -Tarn Debt... .............................................................................................................................................. 6
FinancialInformation.......................................................................................................................................................................7
DebtInformation .............................................................................................................................
........................................7
BondedDebt Ratios................................................................................................•---..........................------............_....._..........7
Future Debt Plans.-------------------------------------------------------------------------------------------------------------------------------------------------------------------
7
PropertyTax........................................................................................................:............................................................................7
Measure5.............................................................................................................................•................_................_.................8
1997-98 Rzptesentative Levy Roe.........................................................................................................................................9
Measure 50..........................................................................................................................................................................:....9
muProperty Tax Ad-ustradon.................................................................................................................................................11
Valuationof Property—Assessment......................................................................................................................................11
TaxLcvy------------------------------------------••---------- .........................................................................................................................12
ThcEastcm Oregon Severance Tax................................................................•---.........-•----................_..................................
12
StrategicInvestments Program.............................................................................................................................................
12
12
Property Tax Collections
14
CountyFinancial Factors.............................................................................................................................................................
14
BudgetaryProccssandrControls..-------•--...._..--•..................................................•-------........---------------.._...._.............................
14
Financial Reporting...............................................................................................................................................................
14
IndependentAudit Requirement....................................••--.-----------------...........,..,,....................------........_........................--_.
15
PensionPlan..........................................................................................................................................................................
Investm.cnt Policy ------------------------- .........................................................................................................................................15
15
Ycar2000 Compliance.............................................•--••----...................,..............------..._.....-----------........................................
16
General Fund Balance Sheet .................................................... ................................. .,,........................ ..,..""."......................
General Fond Statement of Revenues, Expenditures and Changes in Fund Balances .......................................................... 17
GeneralFund Adopted Budget.............................................................................................................................................
1$
19
TheCounty ...................................................................................................................
19
TheCounty Commission ...........................................................................................................•--•------------------
-----•---........
CountyAdministration..............................................................................................
.........................................................19
19
Demographic Infotmation....................................................................................
.........•-----------....----........,................................
23
OregonPublic Employees Retirement...........................................................................................................................
System...
Book-Fsritry Only System....................................................................•-----------------.....................................,......................_...........
24
25
26
TheInitiative Process................................•--------------------------......................................----------....----------.....------------..........................
27
TaxExemption ................ •--• •-....... •--••-...... •--•••...........................................---•-........_._...................................................................
.
28
Rating..............................................................................................................................................
Approvalof Counsel .................................... ...................................................................................................
..... . ................
............................... 28
official Statement........................................................................................................
..................................................... 28
ContinuingDieclon_a 1. rUJ_taking...................
'
.............'29
29
Underw' .........................................................................................
ConcludingStatement...................................................................................................................................................................
•...
29
APPENMX A: Form of Bond Counsel Opinion
APPENDIX B: Audited General Purpose Pinaxscial Statement for the Fiscal
Year Ended June 30, 1997
APPENDIX C: Norm of Continuing; Disclosure Certificate
ii
08/14/98 FRI 10:17 FAX
168 - 2815
OFFICIAL STATEMENT
$510151000*
Deschutes County, Oregon
General Obligation Refiindi<ng Bonds, Series 1998
Deschutes County, Oregon (the "County"), a political subdivision duly organized and existing tinder and by
virtue of the laws of the State of Oregon (the "State"), furnishes this Official Statement in connection with the
offering of $5,015,000* principal amount of General Obligation R.cfunding Bonds, Series 1998 (the Bonds").
This Official Statement, which includes the cover page and appendices, provides information concerning the
County and the Bonds_
Description of the Bonds
Principal Amount, Date, Interest Rates and Maturities
The Bonds will be issued in the principal amount of $5,015,000* and will be dated and ''car interest from
August 1, 1998. The Bonds will mature on the dates and in the principal amounts and will bear interest (payable
semiannually on June 1 and December 1, commencing December 1, 1998) at the respective rates as set forth on
the cover of this Official Statement
interest will be computed on the basis of a 360 -day year comprised of twelve 30 -day months.
Optional Redemption
The Bonds maniring in years 1998 through inclusive, are not subject to redemption prior to maturity. The
Bonds maturing on and after December 1, _ arc subject to redemption at the option of the County, in whole
or in part on any date, on and after December 1, _ at par plus accrued interest, if any, to the date of
redemption.
Notice of Redemption of Bonds
Aintice ofltedemption (DTC). So long as the Bonds arc in book -entry only form the Paying Agent shall notify
DTC of an early redemption not less than 30 days prior to the date fixed. for redemption, and shall provide such
information as required by a letter of representation submitted to DTC in connection with the issuance of the
Bonds, as well as published notice as required by law.
Notice of Redemption (No DTC). During any period in which the Bonds arc not in book -entry only form, unless
waived by any Owner of the Bonds to be redeemed, official notice of any redemption of Bonds shall be given by
the Paying Agent on behalf of the County by mailing a copy of an official redemption notice by first class mail,
postage prepaid, at least 30 days and not more than 60 days prior to the date fixed for redemption, to the Owners
of the Bonds to be redeemed at the address shown on the bond register or at such other address as is furnished in
writing by such Own.cr to the Paying Agent, and published as required by law.
Paying Agent and Registration Features
The Bonds will be issued as fully registered bonds and, when issued, will be registered in the naive of C',F,'Dk Sc
Co. as Bond Owner and as nominee for The Depository Trust Company ("DTC"), New York, New York. DTC
will act as securities depository for the Bonds. Individual purchases and sales of the Bonds may be made in book -
entry form only in minimum denominations of $5,000 within a single maturity and integral multiples thereof.
Purchasers. ("Beneficial Owners") will not receive certificates representing their interest in the Bonds. The
principal of and interest on the Bonds will be payable by the County's "Paying Agent", currently U.S. Bank Trust
Preliminary, subject to change.
0 005
08/14/98 FRI 10:18 FAX 0 006
168 2816
National Association to DTC which, in turn, will remit such principal and interest to the DTC Participants for
subsequent disbursement to the Beneficial Owners of the Bonds. Interest on the Bonds shall be credited to the
Beneficial Owners by the DTC, Participants.
Book -Entry Bonds
DTC will act as securities depository for the Bonds. The ownership of one hilly registered Bond for each
maturity of the Bonds, as set forth on the cover of this Official Statement, each in the aggregate principal amount
of such maturity, will be registered in the name of Cede 8c Co., as nominee for DTC. See "Book -Entry Only
System" herein for additional infbrmation.
Procedure in the Event of Revisions of Book -Entry Transfer System
If the County is unable to retain a qualified successor to DTC, or the County has determined that it is in the best
interest of the County, not to continue the book -entry system of transfer or that interests of the Beneficial Owners
of the Bonds might be adversely affected if the book-entnT system of transfer is continued, the County will
execute, authenticate and deliver at no cost to the Beneficial Owners of the Bonds or their nomincos, Bonds in
fully registered form, in the denomination of $5,000 or any integral multiple thereof within a maturity.
Thereafter, the principal of the Bonds will be payable upon due presentment and surrender thereof at the principal
office of the Bond Registrar; interest on the Bonds will be payable by check or draft mailed or by wire transfer
(wire transfer will be made only if so requested in writing and if the registered owner owns at least $1,000,000
par value of the Bonds), to the persons in whose names such Bonds arc rcgistcrcd, at the address appearing upon
the registration books on the 15th day of the month preceding an interest payment date, and the ''Bonds will he
transferable as provided in the Bond Resolution_
Security for the Bonds
The Bonds arc general obligations of the County and the full faith and credit of the C.',ounty is plcdgcdfor the
punctual payment of the principal of and interest on the Bonds. The Bonds are secured by general ad valorem
taxes to be levied against all taxable property within. the C'.ounty without limitation as to rate or amount More
specifically, for the purpose of paying principal of and interest on the Bonds as the same shall become due, the
County will levy on all taxable property located within the County, in addition to all other taxes, direct annual
taxes whicl}, together with other available finds, shall be suflicicnt in amount to provide for the timely payment
of principal of and interest on the Bonds. The taxes, when collected, are required to he applied solely for the
purpose of payment of principal of and interest on the Bonds and for no other purpose until the Bonds shall have
been fully paid, satisfied and discharged.
The County's Resolution audiorizing the issuance of the Bonds states that taxes levied to pay the Bonds will be
levied outside the limitations imposed by Article XI, Sections 11 and Ilb of the Oregon Constitution. (See
'Troperry Tax Administration' herein.)
The Bonds do not constitute a debt or indebtedness of the State, or any political subdivision thereof other than
the County.
Refunding Plan
Purpose
The Bonds are being issued so that the County can obtain a benefit of a savings in total debt service requirements.
Procedure
The proceeds of the Bonds will be used to provide funds to establish an irrevocable trust escrow to refund
$4,625,000 of the County's outstanding General Obligation Bonds, Series 1992, dated December 1, 1992, which
mature from December 1, 2003 through December 1, 2012, inclusive (the "Refunded Bonds). The Refunded
2
08/14/88 FRI 10:18 FAX 168 2817 R007
Bonds will be escrowed to their first call date, at which time they will be called a price of 101 percent of the
principal amount of the Refunded Bonds plus accrued interest to the date of redemption.
From the proceeds of the Bonds, and with other monies available, the County will purchase certain direct United
States government obligations (referred to herein as "Government Obligations"). These Governmenr Obligations
will be deposited in the custody of U.S_ Banlc Trust National Association, Portland, Orcgon, as escrow went
("Escrow Agent"). The maturing principal of the Government Obligations, the interest earned thereon, and any
initial cash balance will provide for the payment of the interest on the Refunded Bonds beginning December 1,
1998, and provide funds sufficient to redeem the Refunded Bonds on December 1, 2002 at a redemption price of
101 percent of the principal amount of the Refunded Bonds.
The Government Obligations, interest earned thereon, and necessary cash balance, if any, will irrevocably be
pledged to andheld in trust for the benefit of the owners of the Refunded Bonds by the Escrow Agent, pursuant
to an Escrow Deposit Agreement to be executed by the County and the Escrow Agent.
Information on the Refunded Bonds is as follows:
Refunded Amount Amount Redemption
Refunded. Bonds Maturities Outstanding Refunded Date Premium
Series 1992 2003-2012 $6,100,000 $4,625,000 12/01/02 101%
Verification of Mathematical Calculations
Ernst & Young LLP, Memphis, Tennessee, independent certified public accountants, will verify the accuracy of
(i.) the mathematical computations concerning the adequacy of the maturing principal amounts of and interest
earned on the government obligations, together with other escrowed moneys, to be placed in the escrow account
to pay the interest on the Refunded Bonds to and including the December 1, 2002 redemption date of the
Rcfundcd Bonds and to pay the principal of and redemption premium on the Refunded Bonds on the redemption
date and (ii) the mathematical computations of the yield on the Bonds and the yield on the government
obligations purchased in connection with the sale and delivery of the Bonds. Bond Counsel has relied upon such
information set forth in the aeeotuitants' report in concluding that, subject to the condition that the County
comply with certain covenants made to satisfy pertinent requirements of the Internal Revenue Code of 1986, as
amended, (the "Code") under present law, interest on the Bonds is not includible in gross income of the owners
thereof for federal income tax purposes, and will not be treated as an item of tax preference in computing the
alternative minimum tax for individuals and corporations. See "Tai: Exemption" herein.
Estimated Sources and Uses of Funds
The proceeds from the Bonds (less accrued interest) are estimated to be applied as follows:
Source of Funds*
Principal Amount S 5,015,000
Total Available Proceeds
Use of Funds"
hscrow Requirements $
Issuance Costs, Underwriter's Discount and Contingency
Total Use of Funds $ 5,0.15,000
Authorization for Issuance
Under, and in accordance with the laws and provisions of the State of Oregon, the Bonds are issued pursuant to a
resolution of the County Commission of the County adopted on August 13, 1998, The Bonds may be issued
without a vote of the people. Issuance of the Bonds is subject to the approval of the State Treasurer.
* Preliminary, subject to dhange.
08/14/98 FRI 10:19 FAX 0 008
168 2818
County Indebtedness
Orcgon Rcviscd Statutes 287.054 provides that the mairimum ag.-gregatc amount of general obligation fronded
indebtedness of counties shall not at any time exceed two percent of the true cash value of all raxable property
within the geographical boundaries of the County -
Debt Capacity
The following table shows the debt capacity of the County -
Real Market Value (1997-98) (1)
5. i7ZA - L4JdA
General Obligation Debt Capacity
Interest
(2.0°x6 of Real Markct Value)
$ 166,492,084
Less: Outstanding Debt subject to limit
2,495,784
(Includes the effects of this issue) (2)
OVUM
Remaining Legal Debt Capacity
1.18 422,0,IJ
(1) Source: Deschutes County Assessor's Office
(2) Preliminary, subject to change.
Debt Payment Record
The County has promptly mct principal and interest payments on outstanding bonds and other indebtedness in
the past ten. yca.rs when due. Additionally, no refunding bonds have been issued for the purpose of preventing an
impending default.
Fiscal
Ycar 1
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Projected Debt Service Requirements
(As of August 1, 1998)
Outstanding General
u Obligation Bonds
Pri_ ncte!!__
Interest
$ 966,000
S 2,551,254
1,180,000
2,495,784
1,350,000
2,428,237
1,505,000
2,345,819
1,670,000
2,267,351.
1,850,000
2,184,461
2,045,000
2,091,928
2,250,000
1,988,396
2,475,000
1,857,206
2,715,000
1,715,321
2,980,000
1,570,393
3,265,000
1,409,986
3,565,000
1,232,025
3,900,000
1,034,216
4,250,000
81.5,170
3,800,000
580,773
2,430,000
368,775
2,665,000
228,663
2,825,000
77,688
$ 47,6802000
$$ Z9®
(1) Fiscal years ending June 30.
(2) Preliminary, subject to change.
Lava: The Refinnded Bonds
Princi
Interest
$ 0
$ 267,543
0
267,543
0
267,543
0
267,543
0
267,543
345,000
258,486
365,000
239,575
390,000
218,995
415,000
196,650
440,000
172,380
470,000
145,865
500,000
117,000
530,000
86,100
565,000
53,250
605,000
18,150
0
0
0
0
0
0
0
0
MIL -5- The Bonds (2)
Principal
Interest
$ 5.5,000
$ - "'"'T''
30,000
0
35,000
0'
35,000
0
35,000
0
380,000
0
400,000
0
}25,000
0
445,000
0
465,000
0
490,000
0
515,000
0
540,000
0
565,000
0
600,000
0
0
0
0
0
0
0
0
0
$ 4,625,000 L2,84 -LI -64 $ 01015,000
Total
Debt Service
$ 3,566,254
3,705,784
3,813,237
3,885,819
3,972,351
4,414,461
4,536,928
4,663,396
4,777,206
4,893,321
5,040,393
5,189,986
5,337,025
5,499,216
5,6fi5,1i0
4,380,773
2,798,775
2,893,663
2,902,688
®1936,
08/14/98 FRI 10:19 FAX
Overlapping District
Bend Metro Park Sr Rec. Dist.
Central Oregon Park & Rcc Dist.
LaPine Spccial Sewer District
Laidlaw Water District
Bend Library Service District
Redmond Library Service District
Sunriver Library Service District
Black Butte Ranch RFPD
Bend-LaPine School Dist #1
Bcnd-LaPiinc School Dist. #1
(73 Bonds)
Sisters School District #6
City of Bend
City of Redmond
Lapin RFPD
Redmond School Dist #2J (89 Bonds)
Redmond School Dist #2J
Central Oregon Comm. College
Summary of Overlapping Debt
(As of April
6, 1998)
1997-98
60,000
Real Market
_
Percent
Valuation
Overlap 130
$2,920,808,732
100% $
1,089,158,913
100
32,000,018
100
17,454,089
100
3,974,554,180
100
1,394,679,792
100
1,010,735,733
100
389,240,636
100
5,361,214,989
100
Total
168 - 2819
Overl
Gross
Net Direct
ndedDebtf1)
Debt(2)
60,000
$ 60,000
65,000
65,000
319,600
319,600
85,175
85,175
7,865,000
7,865,000
1,702,108
1,702,108
1,095,000
1,095,000
315,000
315,000
94,330,000
94,330,000
5,360,979,336
100
60,000
60,000
894,004,688
100
7,557,498
7,557,498
21318,439,394
100
4,250,000
2,860,000
521,660,645
100
4,200,000
2,085,000
495,921,560
98
742,378
742,378
1,510,902,373
92
466,172
466,172
1,510,520,833
92
23,085,502
23,054,248
9,570,456,090
80
10,586,315
10586,315
$ 156,784,Z4 11,53,24&
494
(1) Gross Bonded Debt includes all bands backed by a geneml obligation pledge including self-supporting general obligation
bonds and limited tax debt.
(2) Net Divert Debt includes all unlimited tax -supported bonds. Self-supporting bonds are excluded.
Source: Debt %Management Divirian, Oregon State Tr migry
10 009
08/14/98 FRI 10:19 FAX
Deschutes County
Outstanding Long -Term Debt*
(As of August 1, 1998)
168 2820
0010
;;-,,,
There are library districts through the County. The library districts were established in 1995 as, separate
municipal corporations pursuant to ORS C:haptcr 451 to provide library services within distinct areas of
Deschutes County. The library districts were formed for the purpose of financing capital construction. The
library districts budget annually for debt service on the library districts' bonds and. the (;ounty accounts for and
budgets for operations through its General Hund pursuant to intergovernmental agreements between the library
districts and the County.
Date of
Date of
Amount
Amount
General Obligation Bonds
Issue
Maturity
Issued Outstandin�(1)
Series 1992 (jail)
12/01/92
12/01/02(2)
S 7,000,000 S
6,100,000
Less: The Refunding Bonds
(4,625,000)
(4,625,000)
Series 1993B (jail)
04/01/93
12/01/12
2,500,000
2,090,000
1996 Series A (jail)
03/01/96
06/01/10
14,400,000
14,095,000
Series 1996 (Fairgrounds)
10/01/96
12/01/16
25,3395,000
25,395,000
Series 1998 (this issue)
08/01/98
12/01/12
5,015.000
5.015,000
General Obligation Bonds Total
49,685,,000
48,070,000
Limited Tax Improvement Bonds
Series 1993 (Roads)
02/01/93
02/01/03
490,000
2951000
Series 1996
04/01/96
06/01/14
660,000
545,000
LTI Bonds Total
1,150,000
840,000
Certificates of Participation
Series 1988 (Visitors' Center)
11/01/88
05/01/09
1,500,000
125,000
Series 1989 (County Buildiiios)
06/01/89
06/01/09
1,800,000
1,270,000
Series 1994A (Redmond Services Bld)
05/01/94
05/01/09
410,000
3.30,000
Series 1996 (Comm. Dcv. Bld. Property)
01/01/96
12/01/15
2,465,000
2,365,000
Scrics 1998 Refunding
05/15/98
11/01/08
--AMP yO00
1,090,000
Certificates of Participation Total
7.265,000
5L,000
Total. Obligations
$ 58-3 00(. $_
54,090,000
Capital !cries
The County has entered into a variety of lease agreements for acquisition of property. The outstanding balance as
of June 30, 1998 was $-;':?:,,,��
County ,Service Districts
The County has several service districts,
including the Scvcnth Mountain County Service District and library
service districts, whose governing body
is the Deschutes County Board
of Comnussioners.
The financial
accountability for the districts is the responsibility of the County. The Seventh Mountain County Service District
has no outstanding long-term debt.
0010
;;-,,,
There are library districts through the County. The library districts were established in 1995 as, separate
municipal corporations pursuant to ORS C:haptcr 451 to provide library services within distinct areas of
Deschutes County. The library districts were formed for the purpose of financing capital construction. The
library districts budget annually for debt service on the library districts' bonds and. the (;ounty accounts for and
budgets for operations through its General Hund pursuant to intergovernmental agreements between the library
districts and the County.
08/14/98 FRI 10:20 FAX
General Obligation Bonds
Redmond Library G.O. Bonds
Sunriver Library G.O. Bonds
Bend Library G.O. Bonds
Total
0 011
(1) Borrowings do not include shunt -tern internal fitnd borrowittps.
(2) Final maturity following issuance of the Genertl. Obligation Refunding? Bonds, Series 1998,
Source: DmPrd from Dm -butes County Annual Knaan aal $taremmm fur the Year Em*ito june 30, 1997 plus ting iuua.
Financial Information
Real Market Valuation (1997-98) (1) $8,324,604,214
Assessed Valuation (1997-98) (1) $7,041,566,482
Estimated 1998 Population 101,200
Debt Information (2)
Net Direct Debt (Includes this issue) $ 48,070,000
Net Overlapping Debt 153,248,494
Total Net Direct and Net Overlapping Debt S 201.318.494
Bonded Debt Ratios
Net Direct Debt to Real Market Valuation 0.54%
Net Direct and Net Overlapping Debt
to Real Market Valuation 2.42%
Per Capita Real Market Valuation $ $2,259
Per Capita Net Direct Dcbr $ 475
Per Capita Total Net Direct and Net Overlapping Debt $ 11989
(1) The definition of Real Market Value and Assessed Value was changed by the 1997 Legislative Assembly_ See `Measure
50" herein.
(2) Net Direct and Net Overlapping Dcbt includes all tax -supported. bonds. Self-supporting bonds arc cxchuled.
Future Debt flans
The C'.ourtty expects to issue approximately $5 million principal amount of certificates of participation in 1998_
The County does not plan to issue additional general obligation bonds in the next twelve months.
Property Tax
The property tax is used by Oregon cities, counties, schools and other special districts to raise revenue to cover a
portion of the expense of local government. The State of Oregon has the authority to levy property taxes,
however the State has not levied property taxes since 1941 and obtains its revenue principally from income tax
and lottery sources.
The Oregon Constirution places certain limits on property tax rates for gencral purposes. The Constitution docs
not limit property tax rates for general obligation bonds, such as the Bonds, for capital construction and
7
168
2821
County
Service Districts
Date of
Date of
Amount
Amount
Issue
Maturi
Issued
Outstandins(1)
07/01/95
06/01/12
$ 1,997,109
$ 1,537,109
10/01/96
06/01/16
1,145,000
1,060,000
0.5/01/96
06/01/14
7,950.000
7,950.
$-.1,092�,1-02
I—J-0,547,I09
(1) Borrowings do not include shunt -tern internal fitnd borrowittps.
(2) Final maturity following issuance of the Genertl. Obligation Refunding? Bonds, Series 1998,
Source: DmPrd from Dm -butes County Annual Knaan aal $taremmm fur the Year Em*ito june 30, 1997 plus ting iuua.
Financial Information
Real Market Valuation (1997-98) (1) $8,324,604,214
Assessed Valuation (1997-98) (1) $7,041,566,482
Estimated 1998 Population 101,200
Debt Information (2)
Net Direct Debt (Includes this issue) $ 48,070,000
Net Overlapping Debt 153,248,494
Total Net Direct and Net Overlapping Debt S 201.318.494
Bonded Debt Ratios
Net Direct Debt to Real Market Valuation 0.54%
Net Direct and Net Overlapping Debt
to Real Market Valuation 2.42%
Per Capita Real Market Valuation $ $2,259
Per Capita Net Direct Dcbr $ 475
Per Capita Total Net Direct and Net Overlapping Debt $ 11989
(1) The definition of Real Market Value and Assessed Value was changed by the 1997 Legislative Assembly_ See `Measure
50" herein.
(2) Net Direct and Net Overlapping Dcbt includes all tax -supported. bonds. Self-supporting bonds arc cxchuled.
Future Debt flans
The C'.ourtty expects to issue approximately $5 million principal amount of certificates of participation in 1998_
The County does not plan to issue additional general obligation bonds in the next twelve months.
Property Tax
The property tax is used by Oregon cities, counties, schools and other special districts to raise revenue to cover a
portion of the expense of local government. The State of Oregon has the authority to levy property taxes,
however the State has not levied property taxes since 1941 and obtains its revenue principally from income tax
and lottery sources.
The Oregon Constirution places certain limits on property tax rates for gencral purposes. The Constitution docs
not limit property tax rates for general obligation bonds, such as the Bonds, for capital construction and
7
08/14/98 FRI 10:20 FAX 0 012
168 2822
improvements approved in accordance with voting requirements or used to refund certain outstanding general
obligation bonds (sec "Exempt Bonded Indebtedness" herein).
Measure 5
Article M, Section 11b (eommorAy -known as "Measure 5") of the Oregon Constitution contains various
limitations on property taxes levied by local jurisdictions. Approvedby the voters state-wide in November 1990,
Measure 5 placed certain limits on property tax rates and made modifications to the system of property tax
administration then in place. The limitations resulting from Measure 5 will remain in place despite the passage of
Measure 50, (Sec "Measure 5(Yherein) which was designed as an addition to, .rather than a replacement for,
Measure 5.
The Constitution calls for taxes imposed upon property to be separated into two categories; one to fti id the
public school system and community colleges and one to fund government operations other than the public
school systcm. Combined property tax rates for non -school government operations arc limited to $10.00 per
$1,000 of Real Market Value per county -assigned tax code area. Similarly, combined property tax rates for the
public school system arc limited to $5 per $1,000 RMV for each tax code area_
Measure 5 docs not limit property tux rates for general obligation bonds approved by a majority of the voters in
accordance with certain requirements (see "Exempt Bonded Indebtedness" herein) or used to refund certain
outstanding general obligation bonds. The Boners qualify as exempt bonded indebtedness- The collection of
property taxes for payment of debt service on the Refunding Bonds arc not subject to the limits of Measure 5 or
Measure 50.
08/14/98 FRI 10:21 FAX
168 - 2823
0 013
The following tables present the 1997-98 tax rates for the County and other taxing jurisdictions within Deschutes
County that overlap the County. The levy rates are calculated
by dividing the tax levy by the assessed value (sec
"Measure 5W herein).
1997-98
Representative Levy Rate (1)
(Rates Per $1,000 of Measure 50 Assessed Value)
Perto mcnt
Permanent
Bond Levy
Consolidated
Consolidated
Rate Subject
Rate After
Not Subject
Rate Before
Rate After
to Measure 5
Measure 5
to Measure 5
Measure 5
Nle ;+sure 5
Compression
Compression
CompressionCompression
C;omgrPLdon
General Government
Deschutes County
S 1.2405
$ 1.2405
$ 0.5171
$ 1.7576
S 1.7576
Sheriff (incorporated)
0.8020
0.8020
0.0000
0.8020
0.8020
Bend Library Co. Service District
0.0000
0.0000
0.1934
0.1934
0.1934
4H & Extension
0.0230
0.0230
0.0000
0.0230
0.0230
911
0.1653
0.1653
0.0000
0.1653
0.1653
City of Bend
2.5942
2.5942
0.0662
2.6604
2.6604
Bend GAP Bonds
0.1624
0.1624
0.0000
0.1624
0.1624
Bend Development Area
0.4607
0.4607
0.0000
0.4607
0.4607
Bend UR Special Levy
0.0833
0.0833
0.0000
0.0833
0.0833
Bend Firks
1.4804
1.4804
T 0.0224
1.5028
1.5028
Total General Government
7.0118
7.0118
0.7991
7.8109
7.8109
Education
Bend-LaPine School District
4.8083
4.3567
1.1463
5,9546
5.5030
Croolc-Deschutes ESD
0.0965
0.0874
0.0000
0.0965
0.0874
Central Oregon Comm. College
0.6135
0.5559
0.1750
0.7885
0.7309
Total Education
5.5183
5.0000
1.3213
6,8396
6.3213
Total Tax Rate
$ 12.5301
$ 12.0118
$ _ 2.1204
$ 14.6505
S 14.1322
(1) Deschutes Comity Tax Code 1-001 for the City of Bend
Source: Deschutes County Department of Alyenment P' Trxrrrtson
Measure 50
Ballot Measure 50 ("Mcasurc 50") was approved by Oregon voters at the state-wide special election ballot on
May 20, 1997, Measure 50 repealed a previously approved property tax reduction measure ]mown as Measure 47
("Mcasurc 47") and replaced it with new ad valorem property tax limitations. Measure 50 retained, with certain
modifications, many of Measure 47s key features, including a reduction of property taxes and a limit on the
growth in annual assessed valuation. Senate Bill 1215, which provided implementing language for Measure 50,
was signed by the Governor on July 14, 1997. Specific provisions include:
"Rollback" Propisi m. Measure 50 reduced property taxes imposed statewide by approximately 17 percent from
fiscal year 1997-98 levels unless certain exemptions applied. (Scc "Exemptions" hdow.) Measure 50 also rolled
back the "real market value" of each unit of property for the tax year 1997-98 to its 1995-96 value, less ten
percent. This new value is deemed the jurisdiction's "assessed value". After the resulting tax levy and assessed
value were determined, a "permanent tax rates representing the product of dividing the tax levy by the assessed
value, was calculated The new tax rates are set as the permanent constitutional rate limit for each jurisdiction and
will be used to calculate future revenues. As a result of the establishment of permanent tax rates, the pre-existing
levy based tax system has effectively been replaced by a rate based tax system.
Limitation ori Growth Frovisimu. Measure 50 limits increases in the assessed valuation of each property to three
percent per year for tax years after 1997-98, with special exemptions for property that is improved, rezoned,
subdivided, or ceases to qualify for exemption. 1;n combination with the fixed permanent rate, the limitation on
08/14/88 FRI 10:21 FAX 0 014
168 y 2824
the growth in assessed value will limit the growth of taxes on individual properties to an average of 3% per year
(excluding exempt leviesccbelow)_
Bonded Indebtedness. Any portion of a local taxing district levy will not be subject to the reduction provisions of
Measure 50 if that portion of the levy is used to pay:
(1) Principal and interest for bonds issued, or any other formal, written borrowing of moneys, executed befbrc
December 5, 1996, and secured by ad valorem property taxes (including refundings thereof).
(2) Local government pension and disability plan obligations that commit ad valorem property taxes and ad
valorem property taxes imposed to fulfill those obligations.
(3) Principal and interest on bonded indebtedness secured by urban renewal taxes issued under urban renewal
plans in existence on or before December 5, 1996.
(4) However, these levies will be subject to the limitations imposed under Measure 5 (see Measure 5" herein),
unless the bonds or debt were Exempt Bonded Indebtedness (see below).
WE
(1) Eaeempt Bonded Indebtedness. Bonds issued as general obligation bonds (or bonds to rcffind them) prior to
the passage of Measure 5, in accordance with its provisions (see "Measure 5" herein), or in accordance with
the capital construction and improvement definitions added under Measure 50 (sec "Capital Construction
and Improvements Definition" below) are exempt from both the rollback of taxes and the limitations on
growth, and arc exempt from the limitations of Measure 5. Under Measure 50, taxes imposed to pay
principal and interest on bonded indebtedness are not subject to constitutional hints, provided such bonds
are (1) authorized by a specific provision of the Oregon Constitution, or (2) incurred for capital
constn]ction or improvements (see "Capital Construction and Improvements" herein) and approved by the
voters in accordance with applicable voting requirements_
(2) Certain Levies_ Operating and serial levies that were first imposed for the 1996-97 or 1997-98 tax years
and received a majority of the votes from voters voting either (i) at a general election in an even numbered
year, or (ii) at any other election in which not less than fifty percent of the registered voters eligible to vote
on the question cast a ballot in an election held before March 15, 1997 are exempt from Measure 50's initial
¢cut=' and are added to the base. They are, however, subject to a "supplemental' average reduction of 1.4
percent. Other levies are included in the base for purposes of calculating the permanent rate but arc subject
to the 17 percent reduction. Still others are not subject to reduction, but are not included in calculating the
permanent rate (see "Local Option Provisions" below).
(3) A taring district which supports a hospital facility through ad valorem property taxes shall be exempt from
the reduction.
Local Option Provisiow. Local governments (including community colleges) other than school districts and
educational service districts arc authorized to ask voters for limited term levies outside the limits of Measure 50,
but subject to the limits of Measure 5, assuming the levy is approved by voters.
Gapital C.ma&wction and Impropensents Definition. Measure 50 narrows the definition of capital construction and
improvements for which general obligation bonds may be issued and may be exempt from the limitations
imposed thereunder and under Measure 5. Capital construction and improvements for which exempt bonded
indebtedness can be authorized cannot include reasonably anticipated maintenance and repair items, or supplies
and equipment which are not intrinsically a part of the structure, but may include public safety vehicles. ORS
310.140 defines capital construction and improvements to include all activities related to the construction,
modification, replacement, repair, remodeling and renovation of structures which have a useful life of over one
year; the acquisition of land, or legal interest in land, in conjunction with the capital construction of a structure;
the acquisition and installation of machinery, equipment, furnishings andequipment which have a life over one
year; and activities related to capital construction such as planning, design, studies, permits, and acquisition of
financing. SB 1215 further modified this statute to include public safety and law cnforcement vehicles with a
useful life of five years or more and to exclude maintenance and repairs which may be deducted as an expense
10
08/14/98 FRI 10:22 FAX 0 015
168 2625
under the provisions of the Internal Revenue Code of 1986 and which do not add materially to the value of the
property nor appreciably prolong its life; and supplies and equipment which arc not intrinsic to the structure
means those necessary to permit a structure to perform the functions for which it was constructed, or which upon
installation constitute fixtures or would be subject to ad valorem taxation as real property if not owned by a
government.
Education ReplacementPkndate. Measure 50 requires the Legislative Assembly to replace rcvcnues lost by the
public school system because of the property tax limitation measure. The Oregon Lcgislarivc Revenue Officc has
estimated that total property tax rcvcnues collected by the public school system for operations under Mcasure 50
was $882.33 million for the tax year 1997-98 and. will be approximately $928.41 million for the tax year 1998-
99. Total State funding for the public school system during the biennium will reach $4.2 billion with an addition
of $150 million provided by capital bonds approved by voters state-wide at the November 4, 1997 general
election. These estimates arc based on certain assumptions that may or may not hold true.
Fees and Charges Provisions. Measure 50 also contains a prohibition on the increase of fees (except for school
districts), taxes, assessments or other charges in the first year without voter approval as alternative funding
sources to offset property tax reductions caused by the implementation of the Measure.
legal Uncertainties The Orcgon Legislature recently adopted legislation implementing Measure 50. It is
possible that the Oregon courts will be requiredto interpret the language of the Measure and define how it is to
be applied. Given these and other variables, the true impact of Measure 50 is not yct known.
Property Tae Administration
Property tax administration, governed by the Oregon Constitution, the State's taxation laws and regulations of the
Department of Revenue includes the processes of assessment, levy and collection of taxes. Implementing
legislation for the new constitutional provisions of Measure 50 will substantially change current administrative
approaches.
Valuation of Property—Assessment
The process of idcntifyirrg and assigning a value to taxable property is termed "assessment." Assessment of
property is administered by the County Assessor =cpt for public utility property and certain classes of industrial
property which are assessed by the State Department of R.cvcn,uc. Administrative and judicial remedies are
available to property owners who disagree with assessments.
Property subject to taxation includes all privately owned real property (land, buildings and improvements) and
personal property (machinery, office furniture and equipment) for non-residential taxpayers. 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, except for centrally
assessed utilities, for which intangible personal property is subject to taxation. Property rued for charitable,
religious, fraternal and governmental purposes has been exempt and reductions in asscssmcnts have been granted
(upon application) for veterans' homesteads farm and forest land, open space and historic buildings. The
assessment roll, a listing of all taxable property, will, under Measure 50, be prepared as of January 1 of cath year,
moved from July 1 -
Certain properties, such as utilities, are valued on the unitary valuation approach (ORS 308.505-308.660).
Under the unitary valuation approach, the taxpaying entity's operating system is defined and a value is assigned
for the operating unit using the market value approach (cost, market value and income appraisals). Values are
then allocated to the entities' operations in Oregon, then to each county the entity operates in, and finally to site
locations.
Ballot Measure 50 resets "assessed value" for purposes of property tax levies beginning in fiscal year 1997-98. See
"Measure 50" herein.
11
08/14/98 FRI 10:25 FAX
168 °- 2826
R01a
Tax Levy
The process of ascertaining and declaring the amount of taxes to be raised from taxpayers is termed "certifying 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 15 as part of the budget process. Annual budgets for
local units are based on a fiscal year which begins on July 1 and ends the following June 30. Ck.)nstitutional. and
statutory provisions limit the amount that a governing body may levy.
Deschutes County's Levy Ektviow. At the May 1998 election, voters defeated County operating levies providing
for the funding of sheriff and library operations. As a result of that Icvy failure, certain operations of the affected
departments have been curtailed. The County has placed operating levies for the sheriffs department and library
system on the September 15, 1998 special election ballot. If the voters do not approve the levy requests,
operations in both areas may be substantially curtailed. In no event will failure to approve operating levies affect
levy of property taxes to pay debt service on outstanding general obligation bonds_
The Eastern Oregon Severance Tax
Between 1929 and 1978, some forest land came under the Forest Fee and Yield Tax Act, which required private
owners of timber to pay ten cents per acre on their timber lands, and 12.5 percent on the value of harvested
timber_ Land and timber under this program arc being, phased in over a period of years and tax rates will bccotuc
equal to EOST in 1998 on land and in 2002 on timber, barring changes in the law.
Before 1991 (Measure 5), severance taxes were directly used to reduce ("offset") property taxes. Although
Measure 5 did not technically repeal the offset, its practical result was to make. severance taxes revenue to most
school districts while continuing the property tax reduction of most other districts. This trc:annent vas formally
incorporated into law by Measure 50 beginning in 1997-98. Measure 50 also rolled back and limited the growth
of timber land values to three percent per year like other property.
The 17 eastern Oregon counties under EOST arc Baker, Crook, Deschutes, Gilliam, Grant, Harney, Jefferson,
Klamath, Lake, Malheux, Morrow, Sherman, Umatilla, Llnion, Wallowa, Wasco and Wheeler. A similar program
covers the counties of western Oregon.
Strategic Investments Program
The Strategic Investments Program ("SIP") was authorized by the Legislature in 1993 to provide tax incentives
for capital intensive investments by firms in Orcgods key industries, particularly in the high technology and
metals industries. -SIP recipients receive a tax break on the assessed value of new construction over $100 million
for 15 years_ The' $100 million cap on assessed value increases by six percent per year. SI.P recipients pay an
arumual Community Service Fee which is equal to one-fourth of the value of the tax break and which is allocated to
local governments. Allocation is determined by negotiation of the local governmcnts. The Commtttiity Scrvicc
)Pee is outside of the Constitutional property tax rate limitations.
Property Tax Collections
Oregon Kcviscd Statutes Chapter 311 requires that all tax levy revenues collected by a county for all taxing units
within the county he placed in an wiscgrcgated pool, and each taxing unit shares in the pool in the sane
proportion as its levy bears to the total of all taxes levied by all taxing units within the County. As a. result, the tax
collection record of each taxing unit is a pro -rata share of the total tax collection record of all taxing units within
the county combined.
Undcr the partial payment schedule, taxes are payable in three equal installments on the fifteenth of November,
February and .May of the same fiscal year_ Discounts are allowed where partial or full prepayment of taxes is
made, as follows- (a) A property owner who pays at least two-thirds of the taxes due, but less than the total, on
or before November 15 will receive a two percent discount of such taxes paid on or before November 15; or
(b) A property owner who pays the total taxies due, on. or before November 15, will receive a three percent
discount of total taxis due.
12
08/14/98 FRI 10:24 FAX 0 002
168 2827
For late payments, interest accrues after each payment due date at the rate of sixteen percent per year. The
method of giving notice of taxes due, the County Treasurer's account for the money collected, the division of the
taxes among the various taxing districts, notices of delinquency, and collection procedures are all covered by
detailed statutes. The licn for property taxes is prior to all other liens or encumbrances of any kind on real or
personal property subject to taxation. By law, a county may not commence foreclosure of a tax lien on real
property until three years have passed since the first delinquency_
A Senior Citizen Property Tax Deferral Program (1963) allows homeowners to defer taxes until death or sale of
the home. New applicants must be at least 62 years old and have a household income under $24,500.
Participants may continue as long as their adjusted gross income does not cxcccd $29,000. Taxes arc paid by the
State which obtains a lien on the property and accrues six percent simple interest per year.
Because of the implementation of .Mcastue 50, property tax statements were delayed in the 1997-98 fiscal year
and the November 15 payment to local jurisdictions was postponed until December 15, 1997.
The following tables represent relevant historic tax information fbr the County.
Deschutes County
Tax Collection Record
* Percentage of total Tax Lcvy. Pre -payment discounts are considered to be collected when vuhtanding taxes are calculated.
Source: Dcathutg County Department ofAssessrnent 0• Taxatirm
11
Percent of
Measure 5
Measure 50
Tax Collection*
Collection
Real Market
Assessed
Year of
As of
year
Value
Value
Levy
06/30198
1997-98
$8,324,604,214
$7,041,566,482
95.020/0
95.02%
1996-97
7,658,042,893
7,658,0421893
94.90
97.92
1995-96
7,024,494,604
7,024,494,604
94.89
99.03
1994-95
6,404,989,924
6,404,949,924
94.50
99.66
1993-94
5,751,283,916
5,751,283,916
94.54
99.95
1992-93
5,109,065,093
5,109,065,093
93.70
99.96
* Percentage of total Tax Lcvy. Pre -payment discounts are considered to be collected when vuhtanding taxes are calculated.
Source: Dcathutg County Department ofAssessrnent 0• Taxatirm
11
08/14/98 FRI 10:25 FAX
Major County Taxpayers
(As of 1997-98)
168 - 2828
Source, Derehaetrs Cotsttty Department ofAssesament C" Taxation
County Financial Factors
Budgetary Process and Controls
The County prepares an annual budget in accordance with the Orcgon Local. Budgct Law. Chapter 294 of the
Oregon Revised Statutes establishes standard procedures for all bud=get functions for all Oregon local
governments. Under the applicablc provisions, there must be public participation in the budget process and the
adopted budget must be balanced.
The County's adnunistrative staff evaluates the budget requests of the various departments of the County to
determine the funding levels of the operati.ng programs. The budget is prescntcd to the public through public
hearinggs held by a budget committee consisting the Board of County Commissioners (the "Commission")
members and lay members. After giving due consideration to the input received from the citizens, the
Commission adopts the budget, authorizes the levying of taxes and sets appropriations. The budget must be
adopted not later than June 30 of each fiscal year.
The budget may be amended during the applicablc fiscal year through the adoption of a supplemental budget.
Supplemental Budgets may be adopted by the Commission pursuant to ORS 294.480.,
Financial Reporting
The financial statement of the County is prepared in accordance with generally accepted accounting principles
("GAAP"). In addition to presenting the financial position, results of operations, and changes in financial
position of the County's funds, the financial statement reconciles differences in reporting act9vitics between the
budgetary basis, as presented in the annu it approvcd budget, and the basis according to GAAP as is used in the
preparation of the financial report.
Independent Audit Requirement
Each Oregon municipal corporation must obtain an audit and exam. ination of its funds and account groups at
least once each year pursuant to the Oregon Municipal Audit Law, Oregon Rcvised Statutes 297.405 to 297.555.
Municipalities having annual expenditures of less than $500,000, with the exception of counties and school
14
0 003
Measure 50
Percentage
Type of
Assessed
of Assessed
Taxgaver
Business
Value
Value
Tart
Pacific Gas Transmission Co.
Utility
$ 88,101,174
1.25%
$ 923,244
US West Communications Inc.
Utility
53,295,330
0.76
740,671
PacifiCorp
Utility
52,939,985
0.75
691,040
Eaglc Crest Inc.
Hospitality
28,211,475
0.40
294,609
Mt. Bachelor Inc.
Residential Village
26,808,510
0.38
258,905
Brooks Resources Corp.
Forest Products
25,678,698
0.36
247,966
Milestone Properties Inc-
NA
17,430,000
0.25
246,324
Cascade Natural Gas Corp.
Utility
18,263,297
0.26
244,137
Willa.mcttc Industries Inc.
Forest Products
20,421,185
0.29
241,783
Pell Trust (Fred Meycr)
Retail
12,892, 775
0.18
182,203
Subtotal - ten of the County's largest
taxpayers
344,042,429
4.89
All other taxpayers in Deschutes County
6,697,524 ,O53
95.1 I
Total County taxpayers
S-7—Q4.t,666 4$2
100-00%
Source, Derehaetrs Cotsttty Department ofAssesament C" Taxation
County Financial Factors
Budgetary Process and Controls
The County prepares an annual budget in accordance with the Orcgon Local. Budgct Law. Chapter 294 of the
Oregon Revised Statutes establishes standard procedures for all bud=get functions for all Oregon local
governments. Under the applicablc provisions, there must be public participation in the budget process and the
adopted budget must be balanced.
The County's adnunistrative staff evaluates the budget requests of the various departments of the County to
determine the funding levels of the operati.ng programs. The budget is prescntcd to the public through public
hearinggs held by a budget committee consisting the Board of County Commissioners (the "Commission")
members and lay members. After giving due consideration to the input received from the citizens, the
Commission adopts the budget, authorizes the levying of taxes and sets appropriations. The budget must be
adopted not later than June 30 of each fiscal year.
The budget may be amended during the applicablc fiscal year through the adoption of a supplemental budget.
Supplemental Budgets may be adopted by the Commission pursuant to ORS 294.480.,
Financial Reporting
The financial statement of the County is prepared in accordance with generally accepted accounting principles
("GAAP"). In addition to presenting the financial position, results of operations, and changes in financial
position of the County's funds, the financial statement reconciles differences in reporting act9vitics between the
budgetary basis, as presented in the annu it approvcd budget, and the basis according to GAAP as is used in the
preparation of the financial report.
Independent Audit Requirement
Each Oregon municipal corporation must obtain an audit and exam. ination of its funds and account groups at
least once each year pursuant to the Oregon Municipal Audit Law, Oregon Rcvised Statutes 297.405 to 297.555.
Municipalities having annual expenditures of less than $500,000, with the exception of counties and school
14
0 003
08/14/88 FRI 10:25 FAX
0 004
168 - 2829
districts, are exempt from this requircmcnt. All Oregon counties and school districts, regardless of amo,Lnt of
annual expenditures, must obtain an audit annually. The required audit may be performed by the State Division
of Audits or by independent public accountants certified by the State as capahlc of auditing municipal
corporations.
The County audit for the fiscal years ended June 30, 1993, 1996 and 1997 were performed by Donaca, Batrleson
& Co., formerly, Donaca, Battleson, Kerkoch & Co_, CPA-, Bernd, Oregon; audits for fiscal years 1994 and 1995
were performed by Nelson, Harrigan, k.ladwood & Co, CPAs, Bcnd, Oregon. The audit reports indicate the
financial statements fairly present the County's financial condition and arc. in conformance with generally accepted
accounting principles applied on a consistent basis, except for the effects of the lack of general fixed asset records.
Donaca, Battleson & Co. was not requested to review this Official Statement and has not completed any
additional auditing review procedures subsequent to the report on the — 7 fiscal year.
issuance of their 1996 9
, i ^r�
J;£2<•,...��yy;,?��?�**•���yy�,,•. aia`:��< .ix �jy};yy.1,�'3iC•:F.FsYY'�•<. .i3�
.5. ..;.��d: fIT1r'•Y;I.i;.'„Y,'.'.5.............................f.....>........a>v. aa......
A copy of the County's general purpose financial statements for fiscal year 199697 is attached hereto as
Appendix B.
Pension Plan
The County participates in the State of Oregon Public Employees' Retirement System ("PERS"), an agent
multiple -employer public employee retirement system that acts as a common investment and administrative agent
for governmental units in the State of Oregon. All participating employees of the County are covered by the plan
after six months of employment. The plan is a defined benefit plan to which both the County and the employee
contribute. The rate of employee contribution is established by law_ The rate of employer contribution is set by
the Public Employees' Retirement Board, based upon actuarial valuations.
The employer contribution rate for the fiscal year ended Jltne 30, 1997 was 7.33 percent plus the qualified
employees' contribution of six percent. The total expense for the County for the 1996-97 fiscal year was
$2,834,111. See also "Oregon Public Employees' Retirement System" herein.
Investment Policy
ORS 294.035 authorizes Oregon municipalities to invest in obligations, ranging from U.S. Treasury obligations
and Agency securities to municipal obligations, bankers' acceptances, commercial paper, certificates of deposit,
corporate debt and guaranteed investment contracts, all subject to certain size and maturity limitations. No
municipality may have investments with maturities in excess of 18 months without adopting a written investment
policy which has been reviewed and approved by the Oregon Short Term Pund Board.
Municipalities arc also authorized to invest up to $31.9 million (adjusted for inflation) in the Local Government
Investment Pool of the Oregon Short -Term Fund, which is managed by the State Treasurer's office. Such
investments arc managed in accordance with the "prudent person rule" and administrative regulations of the State
Treasurer which may change from, time to time. Eligible investments presently include al) of those listed above,
as well as repurchase agreements and reverse repurchase agreements. Currently, the State's investment poitfolios
arc not leveraged and do not contain any derivative products.
Year 2000 Compliance
The County has been assured that its systems air year 2000 compliant; however, it can make no representation as
to compliance of utility and other services outside of the County's control which may affect Cotuity performance.
15
08/14/98 FRI 10:26 FAX , �(
168 / /� (�V VO
General Fund Balance Sheet
(Years Ending June 30)
Liabilities and. Fuad Equity
U-4bilities:
Accounts payable
1997
1996
— 1995
1994
1993
Assets
383,538
802,555
924,329
949,509
—
Cash and cash equivalents
$ 2,176,329
$ 2,086,618
$ 2,009,090
$ 1,783,406
$ 1,457,647
Taxes receivable (net of allowance
for tuicollcmables)
809,371
786,993
781,168
771,149
797,849
Accounts receivable
471,620
323,437
206,099
201,319
243,828
Nom; and convacts receivable
112,656
159,580
214,379
0
0
Assessments rcecivable
0
0
0
242,308
0
Total Assets
$ 3,569,976
$ 3,356,678
$10 736
$ 2,993,132
S_2 ,499,324
Liabilities and. Fuad Equity
U-4bilities:
Accounts payable
$ 173,31.3
$ 82,110
$ 98,575
$ 124,650
$ 119,429
Deferred revenue
383,538
802,555
924,329
949,509
519,803
Total Liabilities:
1,056,901
884,665
1,022,904
1,1174,159
639,237
Fund Equity:
Fund balance:
Unreserved
Undesignated
2,513,075
2,472,013
2,187,832
1,924,028
1,860,087
Total Fund F,quity
2,513,075
2,472,013
2,187,832
1,924,023
1,860,087
Total Liabilities
and Fund Equity
$ 3,569,976
$ 3,3.56,678
$ 3,210,736
$ 2,998,182
$ 2,499,324
Source. Audited I inaneial Statements. Certain crateymia may have been iWrcgatrd fur purpose t f �rr�ecnttttiori.
16
[a 005
08/14/98 FRI 10:26 FAX
0 006
168 r 2831
General Fund Statement of Revenues, Expenditures and
Changes in Fund Balances
(Years Ending June 30)
1997 1996 1995 1994 1993
Revenues
Local sources
Taxes - property
Licenses and fees
C7hargm for services
Interest
Other
Intergovernmental
Local
State
Federal
Total Revenues
Expenditures
Current:
General government
General services
ucalth and welfare
Capital ouday
Debt Service:
Principal
Interest
Total Expenditures
Excess of rcvcattcs over
(under) expenditures
Other Financings Sources (Uses)
Proceeds of long-term debt
Proceeds of capital lease
Operating transfers in
Operating transfers (out)
Total Other Financing
Sc)urces (Uses)
Revenues and Othcr Sources
Over (Under) Expenditures
and Other Use
Beginning fund balance
Prior period adjustment
Ending fund balance
$ 8,730,1.53
3 8,362,451 $
7,769,176
S 7,425,461
$ 7,118,305
1,174,209
935,220
726,559
907,483
3,169,204
592,992
648,746
500,174
376,100
435,646
358,091
351,091
301,741
198,021
177,869
179,304
130,868
134,016
84,122
136,938
67,917
82,453
55,018
56,269
51,793
1,523,117
2,012,725
1,638,883
1,320,812
1,402,608
827,058
143,5 4.5
519,584
563,263
467,817
13,452,841
12,667,099
11,645,151
11,021,531
12,960,190
2,791,003
2,633,761
2,404,634
2,019,158
2,065,904
5,689,283
5,204,173
4,554,300
4,097,505
6,090,371
1,443,890
1,313,414
1,233,051
1,178,632
.1,011,004
915,486
621,157
384,731
664,326
0
0
0
203,195
98,405
0
0
0
65,940
60,750
0
10,839,662
9,772,505
8,845,857
8,118,776
9,167,279
2,613,179
2,894,594
2,799,294
2,902,755
J`3-792,901
0
0
0
362,645
0
230,556
0
67,100
0
0
2,417,933
2,261,965
2,176,073
2,405,064
2,082,296
(5,221,292)
(4,871,692)
(4,778,6,,58)
(5,421,048)
(5,+134,175)
(2,572,803)
(2,609,727)
(2,535,485)
(2,653,339)
(3,351,879)
40,376
284,867
263,809
249,416
441,022
2,472,699
2,187,832
1,924,023
1,860,087
1,419,065
0
0
0
(185,480)
0
$ 2,513,075
$ 2,472,699 $
2,187,832
$ 1,924,023
$ 1,860,087
Sumrme: e9udited Finasscial Statemems. Certain categmias may bare brn; nggrsyated fur pssrpwrr c f presentation.
17
08/14/98 FRI 10:26 FAX
General Fund Adopted Budget
(Years Ended June 30)
168 - 2832
Source: Doebuto County ).998-99 Adopted Budget
18
0 007
1999
1998
Resources
Beginning Nct Working Capital
$
2,400,000
$
2,017,000
Property Taxcs - Prior Year
550,000
550,000
Property Taxes - Current Year
7,456,320
7,427,918
Revenue (excl. property taxes)
4,233,240
5,416,783
Transfers In
125,000
1,879,844
Total Budget Resources
$
142764,560
$
17,291,545
E)Tenditures
Personal Services
$
5,867,394
$
7,122,145
Materials & Services
2,503,921
2,738,383
Capital Outlay
164,945
335,200
Transfers Out
5,066,621
5,955,336
Contingency
361,679
340,481
Unappropriated Fund Balance
800,000
800,000
Total Budget Expenditures
$
14,764,560
$
1,7,291.,545
Source: Doebuto County ).998-99 Adopted Budget
18
0 007
08/14/98 FRI 10:27 FAX
ra 008
The County
'Phe County Commission
168 -2333
Deschutes County was created from part of Crook County on December 13, 1916. The County is governed
under provisions of ORS 203.010 through 203.190 by a Board of County Commissioners (the "Commission')
consisting of three elective members.
The policies of the County arc established by the County Conunission. The current members of the C'.onunission
arc:
Commission Members Position Term Expires
Nancy Pope Schlangen Chair January 1, 1999
Robert L. Nipper Commissioner January 1, 1999
Linda L. Swearingen Conunissioner January 1, 2001
County Administration
Michael A. Maier, County Adyninis mrw and Personnel Director, was appointed to his position in 1979. Among his
managrment responsibilities, Mr. Maier serves as the County's financial manager and develops and monitors the
annual budget. Prior administrative experience includes serving as the court administrator for the Fifth Judicial
District in Oregon, as a management analyst for Orange Cotnry, California, and as an administrative assistant
with the Orange County Superior Courr. Mr. Maier served in the U.S. Marine Corps from 1969 through 1971
and has a Masters of Public Administration degree from the University of Southern California.
Richard Ishafn, Cotsrrby Legal Co mel, has served in this capacity since 1980. He has practiced municipal law for
Oregon counties for 18 years and is the past president of the Oregon County CounscPs Association and the
Municipal Law Scction of the Oregon State Bar. Mr. khan is a graduate of Southern Oregon State College and
the Northwestern School of Law. He was admitted to the Orcgon Bar in 1975 and'is admitted to the Federal
District Court for Oregon and the Federal Ninth Circuit Court of Appeals. Mr- I.sham has extensive experience in
the financing of public unprovemcnt and facility acquisition projects.
Morty Wyme, C:ouffty Finance Direm r and Treasurer, joined the County on January 8, 1996 as its neve finance
director and was appointed Treasurer effective September 1, 1997. He served as chief financial officer for the
American Red Cross in Portland from 1984 to 1995 and was a member of the National American Red Cross
Financial Advisory Committee for seven years, chairing two of those years. Mr. Wynne was finance director for
the City of Gresham from 1978 to 1984 and is a former member of the Oregon Municipal Finance Officers
.Association Board of Di.rcctors. From 1973 to 1978, he held several positions with the City of Downey,
California, as a finance director, manager of financial systems, accounting supervisor, and senior accountant.
Prior to that, he was a corporate auditor for Union Oil Corporation from 1971 to 1973.
Demographic 1Cn£ormation
Information Sources
Historical data have been collected firm generally accepted standard sources, usually from public bodies. In
Oregon, data is frequently available for counties.
General
The County is located in the central portion of the State of Oregon, 150 miles southeast of Portland, Oregon.
The City of Bend is the County scat and the largest city in Deschutes County. The County covers approximately
3,055 square miles, and its boundaries extend from the Cascade Mountains on the west to the range and forest
lands of the central Oregon plateau on the cast. The Deschutes River, running north -south, bisects the County.
Bend is the largest Oregon city cast of the Cascade Mountains.
19
08/14/88 FRI 10:27 FAX
168 - 2834
The County's economic base is centered in tourism, retail trade, secondary wood products, recreational
equipment, aviation, software and high technology. Figures compiled by the State of Oregon Employment
Division for 1997 indicate that manUtacturing accounts for 12 percent of total non-agricultural employment,
wholesale and retail trade accounts for 27 percent, services account for 28 percent and govcrnment employs 14
percent.
Ovcr one-half of total acreage within Deschutes County lies within the Deschutes National Forest. The U.S.
Forest Service, which administers the Dcschutes National Forest, has a regional ofiicc in Bend.. The Bcnd office
of the U.S. Forest Service administers all recreation, timber evaluation and logging activities within the Deschutes
National Forest_
Major crops grown in Deschutes County include hays and silage, field crops, and grains; ranching of cattle, calvcs
and other animals (including sheep and lambs, horses and llamas) also accounts for a significant portion of
agricultural activity in rbc County. Historic harvested acreage andgross farm sales in the County arc as follows:
Deschutes County
Gross Farm Sales 0000
Animal
QT s
Total
Year.
Acres harvested
1996*
34,814
1995
321667
1994
22,790
1993
23,665
1992
27,190
1991
27,250
Gross Farm Sales 0000
Animal
QT s
Products
Total
$10,288
$15,110
$25,398
9,228
18,310
27,538
6,856
20,486
27,342
6,481
21,379
27,860
6,560
24,799
31,359
5,616
30,914
36,530
* Preliminary
Source. 07Wn State Unirenity Extension Service, "Orfpn County State yricrslttrrrclFirCirnates" Special Report 790
The price of farm products has remained fairly constant over the past several years while farm equipment prices
and farm regulations have risen. The total acreage being farmed in Deschutes County has decreased over recent
years as shown in the following table:
Deschutes County
1992 1987
Number of Farms 1,036 884
Acres in Farms 139,483 152,152
Average Sirc 135 172
Total Sales $16.4 million $14.9 million
Average Sales per Farm $15,792 $16,805
Soarrt_ U S_ Censscs ofAgriculSure ats reported fry "The Bulleti�s,A February 24, 1995
In recent years, recreational activities have emerged as a major economic force within the County. The Mt.
Bachelor Sid Resort, one of the major ski resorts in the Pacific Northwest, is located within Deschutes County;
Inn of the Seventh Mountain, Sundvc.r Rcsorr, Black Butte Ranch, and Eagle Crest Resort are all located within
the County and provide year-round recreational opportunities.
Deschutes County is becoming a rock climbing center with over 100 people employed industry -wide. Central
Oregon's EntrePrises USA and Vertical Concepts both mamifactu.rc indoor climbing wall systems and. Mctolius
,Mountain Products Inc. manufactures climbing gear.
Transportation
The County can be accessed by a variety of federal and state highways. Highway 97 is the main north -south
highway linking the County to Washington State northward and California to the south. U.S. Highways 20 and
20
10009
08/14/98 FRI 10:28 FAX
[a 010
168 - 2835
26 service east -west traffic. State Highway 126 connects with the major east -west state highways. The County is
serviced by both Union Pacific and Burlington Northern railroads as well as several trucking companies. Rail
service is provided by Burlington Northern, Union Pacific and the City of Prineville Railway. Amtrak provides
passcngcr rail service via the Chcmult station, located approximately 60 miles south of Bend on Highway 97.Bus
transportation by Greyhound is available from Bend., Madras, Prineville and Redmond.
The State of Oregon Dcpartrnent of Transportation is partially finished with the Bend Parkway construction
project The total project is estimated to have a cast of approximately $100 million and will define a new route
for U.S. 97 through the City of Bend_ The nearly seven -mile project begins just north of the U.S_ 20/U.S. 97
junction (Sisters Interchange) north of Bend and extend south to about Romaine Village Way. Features of this
project include structures, signa&..ed intersections, and interchanges. The project is expected to be complete in
2000.
Redmond Municipal Airport, approximately 15 miles north of Bcnd, accommodates all sizes of aircraft. The
airport is served daily by Horizon Air and United Express. These airlines have direct service to Portland, Oregon,
as well as Seattle, Washington. Additional general aviation airports are in Alfalfa, Rend, Madras/Werson
County, Prineville/Crook Couuity, Sisters and Sunriver.
Population
Historic population figures for Dcschures County and its incorporated cities follow.
* U.S. Ccrnsus Count
Source: Center for Peptlation Rtsearch & Cemus, Portland State Unirenity
Employment
Manufacturing, especially of wood products, accounts for a significant portion of economic activity in Deschutes
County. Willamette Industries is engaged in the manufacturc of particle board and has employment of
approximately 215. Bend Research, which employs approximately 80 people and has spin-off companies of
Conscp Membranes and AquaAir, arc all high. -teeth companies which help show the economic diversification of
Deschutes County's employment base_
The following table is a representative listing of major employers in the County.
21
Deschutes
City of
City of
City of
NXII
Coun
Bend
Redmond
Sisters
1997
101,200
33,740
11,990
805
1996
98,000
32,220
11,175
775
1995
94,100
30,630
10,555
775
1994
89,500
29,425
9,650
765
1993
86,800
27,555
8,955
765
1992
82,600
24,715
8,365
760
1991
79,800
22,505
7,870
745
April 1*
1990
74,958
20,447
7,165
708
1980
62,142
17,263
6,452
696
* U.S. Ccrnsus Count
Source: Center for Peptlation Rtsearch & Cemus, Portland State Unirenity
Employment
Manufacturing, especially of wood products, accounts for a significant portion of economic activity in Deschutes
County. Willamette Industries is engaged in the manufacturc of particle board and has employment of
approximately 215. Bend Research, which employs approximately 80 people and has spin-off companies of
Conscp Membranes and AquaAir, arc all high. -teeth companies which help show the economic diversification of
Deschutes County's employment base_
The following table is a representative listing of major employers in the County.
21
08/14/98 FRI 10:28 FAX
Deschutes County
Representative Major Employers
(As of rune, 1998)
Employer
Bend-LaPinc School District
St. Charles Medical Ccnter
Mt. Bachelor Slci Resort (seasonal)
State of Orcgon (Central Oregon region)
Deschutes County
Redmond School District
Su.nrivcr Resort
Eagle Crest Partners, Ltd.
Deschutes National Forest (primarily Bcnd)
Albertson's Supermarkets
Bcaver Motor Coaches
Po?.?i Windows
Central Oregon Community College
Black Butte Ranch
City of Bend
Bend Memorial Clinic
168 2836
Business
Education
Health care
Recreation
Government
Government
Education
Rccrcation
Recreation
Federal forest management
Grocery
Recreational vehicles
Secondary wood. products
Education
Recreation
Government
Health Care
Includes part-time and seasowd employces
Source. Central Oregon F-ennomicDeve1gpm ntDepxrtment,'°QuickFacts,"Jmly1998
Economic Indicators
Economic indicators for Deschutes County are shown as follows:
Deschutes County
New Residential Building Permits
New Multi Famil
Number
New, Single
Family
Year
Number
Valuation
1998*
543 $
82,277,172
1997
1493
216,683,613
1996
1241
166,943,486
1995
1161
147,153,653
1994
1353
NA
1993
1282
NA
New Multi Famil
Number
Valuation
189
$ 10,394,699
315
23,003,462
209
13,772,765
228
13,448,712
410
NA
460
NA
* Data through April 1998.
Source. Cotter for Papulatwn Rerearch & Cemur, Portland State Umverrity
Deschutes County
Total Personal and Per Capita Income
Sourer. U.S. Bureau ofEeonomieAmOsis
22
Number of
Em ees*
1,500
1,250
850
762
700
675
650
635
584
420
420
369
355
350
303
301
Total
Valuation
$ 92,671,871
239,687,075
180,716,251
160,602, 165
179,635,415
161,155,688
State of Oregon
Deschutes County
Total personal
Per Capita
Total personal
per Capita
Year
Income (in millions)
Income
1996
$2,196.3
$22,297
1995
2,053.8
21,658
1994
1,886.3
20,756
1993
1,766.4
20,150
1992
1,620.4
19,306
Sourer. U.S. Bureau ofEeonomieAmOsis
22
Number of
Em ees*
1,500
1,250
850
762
700
675
650
635
584
420
420
369
355
350
303
301
Total
Valuation
$ 92,671,871
239,687,075
180,716,251
160,602, 165
179,635,415
161,155,688
State of Oregon
Total personal
Per Capita
Income (in millions)
Income
$73,870.7
$23,111
68,879.6
21,915
63,688.5
20,620
59,656.4
19,651
55,775.7
18,747
0 011
08/14/98 FRI 10:28 FAX 0 012
168 283?
Deschutes County
Resident Labor Force, Unemployment, and Employment (1)
(1) Includes employed and unemployed individuals 16 years and older by place of residence. Data arc adjusted for multiple
job -holding and commuting_
(2) Noefarrn payroll data are based on the 1987 Standard Industrial Classification manual_ The data are by place of work.
Persons working multiple jobs are counted more than once.
(3) Goods producing industries include manudcturing, mining, and construction,
(4) Service producing industries include transportation, communications, & utilities; wholesale R retail trade; frnancr.,
insurance Lt rral estate; services; and government -
Source., State of Oregon Emplayonent Doparement,1997 and 1996statisties are as ofMarch 1998; 1995 arc as ofAprd 1997;1994 as
of jwte 1996; 1993 as of SePrember 1996
Oregon Public Employees Retirement System
The Oregon Public Employees Retirement System collects contributions from both employers and employees for
the puurposc of funding retirement benefits. The system at June 30, 1997, covered approximately 185,111 state
and local overnment Orcgon employees and 68,449 retired employee -beneficiaries. The system is administered
by the Oregon Public Employees' Retirement Board.
Employee contributions and employer contributions are collected and used to fund a full formula pension
retirement allowance. The pension is based on a statutory formula and is set accorchrug to employee's final
average salary and term of service. Such pulsions arc paid exchrsively out of interest and principal accumulations
from member and employer contributions.
23
_ 1997 Changs
From
1997
1996
1995
1.994
1996
1995
_
1994
Civilian Labor Forcc
54,060
53,580
50,530
49,170
480
3,530
4,890
Uncmployment
4,390
4,550
3,310
3,540
-160
1,080
850
Percent of Labor Force
8.1%
8.5%
6.6%
7.2%
XXX
XXX
xxx
Total Employment
49,670
49,030
47,270
45,630
640
2,40()
4,040
Nonfarm payroll Employment (2)
Nonfarm Payroll F,mp.
44,330
42,530
40,670
38,630
1,800
3,660
5,700
Total Manufacnuring
5,380
5,250
5,130
5,100
130
250
280
Durable Good
4,550
4,460
4,350
4,430
90
200
120
Nondurable Goods
830
800
790
670
30
40
160
Total Nonmanufacturing
38,950
37,280
35,540
33,530
1,670
3,410
5,420
Construction 8r Mining
3,390
3,260
3,260
3,020
130
130
370
Trans, Comm & Utilities
1,500
1,510
1,450
1,370
-10
50
130
Trade
11,940
11,460
11,300
10,720
480
640
1,220
Fin, Ins., & Real Estate
3,450
3,220
3,070
2,900
230
380
550
Services
121430
11,660
10,490
9,720
770
1,940
2,710
Government
6,250
6470
5,970
5,800
80
280
450
Labor -Management Disputes
0
0
0
0
0
0
0
(1) Includes employed and unemployed individuals 16 years and older by place of residence. Data arc adjusted for multiple
job -holding and commuting_
(2) Noefarrn payroll data are based on the 1987 Standard Industrial Classification manual_ The data are by place of work.
Persons working multiple jobs are counted more than once.
(3) Goods producing industries include manudcturing, mining, and construction,
(4) Service producing industries include transportation, communications, & utilities; wholesale R retail trade; frnancr.,
insurance Lt rral estate; services; and government -
Source., State of Oregon Emplayonent Doparement,1997 and 1996statisties are as ofMarch 1998; 1995 arc as ofAprd 1997;1994 as
of jwte 1996; 1993 as of SePrember 1996
Oregon Public Employees Retirement System
The Oregon Public Employees Retirement System collects contributions from both employers and employees for
the puurposc of funding retirement benefits. The system at June 30, 1997, covered approximately 185,111 state
and local overnment Orcgon employees and 68,449 retired employee -beneficiaries. The system is administered
by the Oregon Public Employees' Retirement Board.
Employee contributions and employer contributions are collected and used to fund a full formula pension
retirement allowance. The pension is based on a statutory formula and is set accorchrug to employee's final
average salary and term of service. Such pulsions arc paid exchrsively out of interest and principal accumulations
from member and employer contributions.
23
08/14/98 FRI 10:29 FAX
168 2838
The following fib Cres (represented in millions) arc as of June 30, 1997 (audited)
Total system assets
Total system benefit and refund payments made
Total emp.loycr contributions
Total employee contributions
Total system investment income
1997
1996
$ 31,166.7
$ 23,014.6
909.1
1,066.8
461.8
445.6
303.7
289.7
4,830.0
3,640.2
Total annual payroll of members covered by the system (as of 12/31/95): 4,848.1
The system's pension program is a defined plan, and requires periodic actuarial review. Under ORS 237, this
review must be performed at least every two years. The Governmental Accounting Standards Board (GASB)
requires actuarial review every two years, with an actuarial update between years.
The most recently completed evaluation, conducted by the firm of Milliman and Robertson, Inc., indicates total
assets of $20,957.6 million as of December 31, 1995. For the system as a whole, the actuarial liability under the
entry age actuarial cost method was underfunded by $2,291.0 million as of December 31, 1995. The FY 1996-
97 contribution rate for the County was 7.33 percent plus six percent for the County's employees.
The 1995 Legislature enacted Chapter 654, Section 3, Oregon Laws 1995 which has been codified into ORS
238.435. This legislation crcatcd a second tier of benefits for persons who established membership on or after
January 1, 1996 ("Tier Two Members"). The second tier provides a lower benefit structure than is available to
prior members ("Tier One Members"). Any potential reductions in employer contribution rates will not be
realized until turnover has occurred and Tier Two Members replace Tier. One Mcmbcrs. To establish
membership in PERS, a person must work for six months in a qualifying position for a participating employer.
As of December 31, 1996, there were no Tier Two Members of the system.
Book -Entry Only System
The following information has been pmidad by DTC. The County makes no representation as to the aecseracy or
completeness thereof. Beneficial Owners should wnfarm the follvivb;q with DTC or the Partscspants (as bereinaflesr
defined).
DTC will act as securities depository for the Bonds. The Bonds will be issued as fully registered Bonds, registered
in the name of Cede & Co. (DTCFs partnership nominee). One fully -registered security certificate will be issued
for each maturity of the Bonds, in the aggregate principal amount of such maturity, and will be deposited with or
for the benefit of DTC.
DTC is a limited -purpose trust company organized under the New York Banking Law, a "banking organization"
within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing
corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered
pursuant to the provisions of Scetion 17A of the Securities Exchange Act of 1934. DTC holds securities that its
participants (the "Participants") deposit with DTC. DTC also facilitates the settlement among Participants of
securities transactions, such as transfers and pledges, in deposited securities through electronic computerized
book -entry changes in Participants' accounts, thereby eliminating the need of physical movement of securities
certificates. Direct Participants include securities brokers and dealers, banks, must companies, clearing
corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the
New York Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities
Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, batilcs,
and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly ("Indirect Participants'). The rules applicable to DTC and its Participants are on file with
the Securities and Exchange Commission.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial
24
[A 013
08/14/98 FRI 10:30 FAX
1?1 014
168 2839
Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Chvvners will not
receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Bonds are to be accomplished by entries made on the books of Participants acting on
behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests
in the Bonds, except in the event that use of the book -entry system for the Bonds is disconrinurd.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of
DTCs partnership nomi.nce, Cede tit Co. The deposit of Bonds with DTC and their registration in the name of
Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of
the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are
credited, which may or may not be the Beneficial Owners, The Participants will remain responsible for keeping
account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed
by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time
to time.
Redemption notices will be sent to Cede & Co. If less than all of the Bonds within an issue are being redeemed,
DTC's practice is m determine by lot the amount of the interest of each Direct Participant in Bonds to be
redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to Bonds. Under its usual procedures, DTC
mails an Omnibus Proxy to the County as soon as possible after the record date. The Omnibus Proxy assigns
Celle & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds arc credited
on the record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Bonds will be made to ATC.'. DTC's practice is to credit Dircct
Participant's accounts on payable date in accordance with their respective holdings shown on DTC's records
unless DTC has reason to believe that it will not receive payment on payable date. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities
held for the accounts of Customers in bearer form or registered in "street name," and will be the responsibility of
such Participant and not of DTC, the Paying Agent, or the County, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payments to UTC is the responsibility of the County or the
Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect
Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by
giving reasonable notice to the County or Agency. Under such circumstances, in the event that a successor
securities depository is not obtained, Bond certificates arc required to be printed and delivered. The County may
decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities
depository). In that event, Bond certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book -entry system has been obtained from sources
the County believes to be reliable, but the County takes no responsibility for the accuracy thereof:
Litigation
There is no litigation pending questioning the validity of die Bonds nor the power and authority of the Cocccriy to
issue the Bonds. There is no litigation pending which would materially affect the finances of the County or affect
tht County's ability to meet debt service requirements on the Bonds.
25
08/14/98 FRI 10:30 FAX
[a 015
The Initiative Process
168 2840
The Oregon Constitution, Art. IV, Sec. 1, reserves to the people of the stare the initiative and refcrcndwn power
pursuant to which measures designed to amend the state Constitution or enact legislation, can be placed on the
statewide general election ballot for consideration by the voters. "R.cfcrcndtOn" generally means measures
referred to the electors by a legislative body such as the State Legislative Assembly or the governing body of a
district, county or other political subdivision. "Initiative" generally means a measure placed before the voters as a
result of a petition circulated by one or more private citizens.
Any person may file a proposed initiative with the Oregon Secretary of State's office. The Oregon Attorney
General is required by law to draft a proposed ballot title for the initiative. Public comment on the draft ballot
title is then solicited by the Secretary of State. Aftcr considering any public comments submitted, the Attorney
General will either certify the draft ballot title or revise the draft ballot title. Any elector that subnv.ttcd written
comments who is dissatisfied with the ballot title certified by the Attorney General may petition the Oregon
Supreme Court seeking a revision of the certified bal lot title.
Once the ballot title has been cerrificd and the Secretary of State has authorized the petitioners, the proponents of
the initiative may start gathering the initiative petition signatures necessary to place the proposed initiative on the
ballot. To be place on a general election ballot, the proponents of a proposed initiative mast submit to the
Secretary of State initiative petitions signed by a number of qualified voters equal to a specified percentage of the
total number of votes cast for all candidates for governor at gubernatorial election at which a Governor was
elected feu a term of four years next preceding the filing of the petition with the Secretary of State. For the
Novcmbcr 3, 1998 general election the requirements are eight percent (97,681 signatures) for a constitutional
measure and six percent (73,261 signatures) for a statutory initiative; this amount will change for, the Novcmbcr
2000 a neral election. Any elector may sign an initiative petition for any measure on which the elector is entitled
to vote.
The initiative petition must be filed with the Secretary of State not less dum four months prior to the general
election at Which the proposed measure is to be voted upon. As a practical matter, proponents of an initiative
have approximately two years in which to gather the necessary number of signatures. Statc law permits persons
circulating initiative petitions to pay money to persons obtaining signatures for the petition. If the person
obtaining signature is being paid, the signature sheet must contain a notice of such payment.
Historical Iniitiiative Petitions
Over the past decade Oregon has witnessed increasing activity in the number of initiative petitions that have
qualified for the statewide general election. Acconfing to the Elections Division of the Oregon Secretary of State,
the number of initiative petitions that have qualified for the ballot and the number that have passed in the general
elections in the years 1988, 1990, 1992, 1994, 1996 and 1998 are as follows:
For additional information concerning certain previous initiative measures which have been adopted by the
voters, scc ."Property Tax" herein
Sae w, Eleettiotu Dinisi m. Oregtm Seomtary of Siatc I9901AII'I7ATIPE LOG Elections Divrjim
26
Number of
Number of
Year of
Initiatives that
Initiatives that
General Election
Qualified
Passed
1988
5
3
1990
8
3
1992
7
0
1994
16
8
1996
16
4
1998
10
NA
For additional information concerning certain previous initiative measures which have been adopted by the
voters, scc ."Property Tax" herein
Sae w, Eleettiotu Dinisi m. Oregtm Seomtary of Siatc I9901AII'I7ATIPE LOG Elections Divrjim
26
08/14/98 FRI 10:31 FAX Ole
16$ 284:,1
Tax Exemption
General
In the opinion of Bond Counsel, interest on the Bonds is excluded from gross income for purposes of federal
income taxation pursuant to Section 103(x) of the Code, provided the requirements of the Code described in this
section under the heading "Continuing Requirements" arc complied with.
The Bonds are not private activity bonds and interest on the Bonds is not an item of tax prefere ce for purposes
of determining alternative minimum taxable income for individuals or corporations under the Cvdc, however,
interest on the bonds is taken into account in the computation of adjusted current earnings for p:i poses of the
corporarc alternative minimum tax under Scction 55 of the Code and in the computation of the environmental tax
on corporations under Section 59A of the Code as more fully described in this section under; the heading
"Certain Federal Income Tax Consequences." t
Except as described herein, Bond Counsel expresses no opinion on any state or local tax consequc.i�.cc arising with
respect to ownership of the Bonds.
Continuing Requirements
The Codi imposes a number of requirements that must be satisfied in order for interest on state or local
obligations, such as the Bonds, to be excludable from gross income for federal income. tax purposes. These
requirements include limitations on the use of bond proceeds and the facilities financed or refinanced with such
proceeds, limitations on the investment of bond proceeds prior to cxpendituxr anda requirement that excess
arbitrage earned on the investment of bond proceeds be paid periodically to the United States. The County has
covenanted in the bond documents that it will comply with these requirements.
Bond Counsel's opinion will assume continuing compliance with the covenants of the County contained in the
bond documents pertaining to those sections of the Code which affect the exclusion from gross income of interest
on the Bonds for federal income tax purposes and, in addition, will rely on representations by the County with
respect to matters solely within the knowledge of the County, which Bond Counsel has not independently
verified.. If the County should fail to comply with the covenants in the bond documents or if the foregoing
representations should be determined to be inaccurate or incomplete, interest on the Bonds could become taxable
from the date of delivery of the Bonds, rp?,wdless of the date on which the event causing such taxability occurs.
Certain Federal Income Tax Consequences
The following is a discussion of certain federal tax matters under the Code. This discussion docs not purport to
deal with all aspects of fcdcral taxation that may be relevant to particular bondowners. prospective bondowners,
particularly those who may be subject to special rules, are advised to consult their own tax advisors regarding the
federal tax consequences of owning and disposing of the Bonds, as well as any tax consequences arising under the
laws of any state or other taxing jurisdiction.
Alternative Minim um Tax on Cmporazzmu. Section 55 of the Code imposes an alternative minimum tax on
corporations equal to the excess of the tentative minimum tax for the taxable year over the regular tax for such
year. The tentative minimum tax is based upon alternative minimum taxable income which is regular taxable
income with certain adjustments and increased by the amount of certain items of tax preference. One of the
-it by which a corporation's adjusted current earnings exceeds the
adjustments is 75 percent of the amou
corporation's alternative minimum taxable income (determined without regard to such adjustment and the
alternative tax net operating loss deduction). Interest on tax-exempt obligations, such as the Bonds, is included in
a corporation's adjusted current earnings.
For taxable years beginning after December 31, 1997, the corporate alternative minimum. tax is repealed for small
business corporations that had average gross receipts of less than $5 million for the 3 -year period beginning after
December 31, 1994, and such small business corporations will continue to be exempt from the corporate
alternative minimum tax so long as their average gross reccipts do not exceed $7.5 million.
27
08/14/98 FRI 10:31 FAX
[a 017
168 2842
FinancW Institutiom. The Codc denies banks, thrift institutions and other financial institutions a deduction for
100 percent of their interest expense allocable to tax exempt obligations, such as the Bonds, acquired after
August 7, 1986_
Borromred Funds. The Code provides that interest paid on funds borrowed to purchase or carry tax-exempt
obligations during a tax year is not deductible. In addition, under rules usedby the Internal Revenue Service for
determining when borrowed funds are considered used for the purpose of purchasing or when carrying particular
assets, the purchase of obligations may be consideredto have been made with borrowed funds even though the
borrowed funds are not directly traceable to the purchase of such obligations.
Tropeny and Casualty Insurance Companies. The deduction for loss reserves for property and casualty insurance
companies is reduced by 15 percent of the sum of certain items, including the interest received on tax-exempt
bonds, such as the Bonds.
Social Security and Railroad Retiremnit Benefits- The Code also requires recipients of certain Social Security or
Railroad Retirement benefits to take into account, in determining gross income, receipts or accruals of interest
that is exempt from federal income tax.
Branch Profits Tax. Certain foreign corporations doing business in the United States may be subject to a branch
profits tax on their effectively connected earnings and profits, including tax-exempt interest on obligations such as
the Bonds.
S Carporatimr. Certain S corporations that have subchapter C earning=s and profits at the close of a taxable year
and .,gross receipts more than 25% of which arc passive investment income, -which includes interest on tax-exempt
obligations, such as the Bonds, may be subject to a tax on excess net passive income.
In the opinion of Bond Counsel, interest on the Bonds is exempt from present State of Oregon personal income
taxation.
Rating
As noted on the cover page of this Oficial Statement, the County will apply for a rating for the Bonds from
Moody's Investors Service. When and if obtained, the rating will reflect only the view of the rating agency and an
explanation of the significance of the rating may be obtained from the rating agency. There is no assurance if the
rating, once obtained will be retained for any given period of time or that the rating will not be revised downward
or withdrawn entirely by the rating agency if, in its judgment, circumstances so warrant. Any such downward
revision or withdrawal of the rating will be likely to have an adverse effect on the market price of the Bonds.
Approval of Counsel
Legal matters incident to the authorization, issuance and sale of Bonds by the County arc subject to the
unqualified approving legal opinion of Bond Counsel, substantially in the form attached hereto as Appendix A.
Bond Counsel has reviewed this document only to confirm that the portions of it describing the Bonds and the
authority to issue them conform to the Bonds and the applicable laws under which they are issued.
Official. Statement
The County hereby deems this Preliminary Official Statement pursuant to Securities and Exchange Commission
Rule 15c2-12 as fi-nal as of its date except for the omission of information dependent upon the pricing of the issue
and the completion of the underwriting agreement, such as offering prices, interest rates, selling compensation,
aggregate principal amount, principal amount per maturity, delivery dates, ratings, and other terms of the Bonds
dependent on the foregoing matters.
28
08/14/98 FRI 10:32 FAX
la 018
168 - 2843
Continuing Disclosure Undertaking
The Securities and Exchange Commission has published amendments to Rule 15c2-12 (the "Rule") that require
annual disclosure of current financial information and timely disclosure of certain events with respect to the
Bonds, if material. Pursuant to the Rulc, the County has agreed to provide to each nationally rccq nizcd
municipal securities information repository and to the appropriate state information depository, if any, audited
financial information of the County and certain financial information or operating data. In addition, the County
has agreed to provide to the Municipal Securities Rulemaking Board and to any stare information repository,
notice of certain events, pursuant to the requirements of Section (b)(5)(i) of the Rule. The Ceninty has not failed
to comply with any Prior undertaking under the Rule since July 3, 1995, the date on which the Rule became
effective-.
A copy of the County's Continuing Disclosure Certificate is attached hereto as .Appendix C.
Underwriting
The Bonds are being purchased by Seattle -Northwest Securities Corporation acting as the Underwriter. The
purchase contract provides that the Underwriter will purchase all of the Bonds, if any are purchased, at a price of
$ ($ per $100 of the par value of the Bonds), rcprescnting an original issue discount of
$ and an underwriter's discount of $ , plus accrued interest from August 1, 1998 to
August 26, 1998. The Bonds will be reoffered at an average price of % of the par value of the Bonds.
After the initial public offering, the public offering prices may be varied from time to time.
Concluding Statement
All estimates, assumptions, statistical information and other statements containcd herein, while taken from
sources considered reliable, are not guaranteed by the Underwriter or the County. So far as any statement herein
includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, th y
.ire 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 Bonds. Additional information may be obtained from the County. The statements relating to the Resolution
arc in summarized form, and in all respects are subject to and qualified in their entirety by express reference to the
provisions of such document in its complete form.
The agreements of the County arc sct forth in such documents, and the information assembled herein is not to be
construed as a contract with Owners of the Bonds. Information with respect to the County set forth in this
Official Statement has been supplied by the County, and the Underwriter has relied on the County with respect to
the accuracy and sufficiency of such information.
29