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40-431-Resolution No. 81-070 Recorded 9/29/1981. y�L 40 SAGE 431 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Adopting the Official Statement Relating ) to the General Obligation ) Bancroft Improvement Bonds, Series 1981. 9 1981 ROSS' RESOLUTION NO. 81-.070 0fSCH T SRCO VT y ON T Y .CLERK WHEREAS, the Board of County Commissioners authorized the sale of General Obligation Bancroft Improvement Bonds; and WHEREAS, an Official Statement was prepared for this issue by Foster and Marshall, Inc., the County's financial consultant; and WHEREAS, the Official Statement was available prior to the first publication of the Official Notice of Bond Sale; and WHEREAS, the Board of County Commissioners has reviewed the Official Statement, and finds it accurate and truly representative of the financial condition of the County and the Bond Issue; now, therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. That the Official Statement, marked Exhibit "A," attach d hereto and by this reference incorporated herein, is adopted as the County's Official Statement relating to the General Obligation Bancroft Improvement Bonds, Series 1981, to be issued by Deschutes County, Oregon. DATED this day of S~��f��►� P 1981. BOARD OF COUNTY COMMISSIONERS ATTEST: STJSAN STONEMAN Recording Secretary RESOLUTION NO. 81-070, PAGE 1 - VOL 40 %F432_____ OFFICIAL STATEMENT DATED: September 21, 1981 SALE DATE: October 7, 1981 RATINGS: Moody's Applied For SALE TIME: 10:00 A.M. PDT In the opinion of Bond Counsel, interest on the bonds is exempt from Federal income tax and, under Oregon law, from all personal income tax in the State of Oregon. — DESCHUTES COUNTY, OREGON -- .-$11635,000 GENERAL OBLIGATION - - BANCROFT IMPROVEMENT'BONDS, SERIES 1981 DATED: October 1, 1981 DUE: October 1, 1982-1991 Description of Bonds — The Deschutes County General Obligation Bancroft Improvement Bonds, Series 1981 (the "Bonds") will be negotiable coupon bonds in the denomination of $5,000. Both principal of and interest on the Bonds will be payable at the office of the Deschutes County Treasurer in Bend, Oregon. The Bonds will pay interest semi-annually on the first days of April and October, commencing April 1, 1982. MATURITY SCHEDULE Yield or Yield or Year Amount Coupon Price . Year Amount Coupon Price 1982 $ 95,000 1987 $165,000 1983 105,000 1988 185,000 1984 115,000 1989 205,000 1985 130,000 1990 230,000 1986 145,000 1991 260,000 Redemption Provision — The Bonds, or any portion thereof, are subject to call and redemption in in- verse numerical order on the following dates and at the following prices: on October 1, 1987, and April 1, 1988, at 102% of par; on October 1, 19>38' and April 1, 1990, at 101 % of par; and on October 1, 1989, and thereafter at 100% of par. ' Legal Opinion — The unqualified approved legal opinion of Ragen, Roberts, O'Scannlain, Robertson & Neill, Bond Counsel, of Portland, Oregon, approving the validity of the Bonds and declaring that the interest is exempt from all present Federal income taxes and present State of Oregon personal income taxes will be printed on each bond. FINANCIAL ADVISOR - V The information obtained from so to the accuracy Statement is, or as stated in the with the sale of 287. The deliver herein is correc tcontained in this Official Statement urces believed to be reliable. No or completeness of such information, shall be relied on as a promise or Notice of Bond Sale. This Official the County's bonds in accordance Y %J this Official Statement at as of any time subsequent to it VOL 40 PACE 433 has been obtained from various data representation or warranty is made as and nothing contained in this Official representation by the County, except Statement is submitted in connection with Oregon Revised Statutes Chapter ime does not imply that information s any t date. DESCHUTES COUNTY, OREGON COUNTY COMMISSIONERS VL 40 PAcE434 Term Expires Robert C. Paulson, Chairman December 31, 1982 Clay C. Shepard*96090490*0000 December 31, 1982 Albert Young December 31, 1984 OTHER ELECTED OFFICIALS Louis L. Selken ..................0000 District Attorney Rosemary Patterson County Clerk Forrest C. Sholes Sheriff Helen M. Rastovich Treasurer Oscar Be Bratton Assessor Edgar W. Graves Surveyor BOND COUNSEL Ragen, Roberts, O'Scannlain, Robertson & Neill Portland, Oregon FINANCIAL ADVISOR Foster & Marshall Inc. Seattle, Washington TABLE OF CONTENTS -1- Page Notice_of Sale.......0.............................................. 2 Authorization....................................................... Security............................................................ 5 Purpose............................................................. 5 Debt Limitation 5 ..................................................... 5 Future Financing...........'......................................... Litigation.......................................................... 5 Deschutes County Profile 5 ............................................ The Bancroft Bonding Act 6 ............................................ County Indebtedness 7 ................................................. 8 Outstanding Debt .................................................. 8 Overlapping Debt .................................................. Bonded Debt Ratios 8 ................................................ County Tax Collection Record 9 ...................................... Major Taxpayers 9 ................................................... Property Tax Information 9 General Obligation Bond Debt Service 10 General and Economic Information .................................... 11 11 Appendix: June 30, 1980, Financial Statements 14 ...................... -1- 0 CAUL 435 OFFICIAL NOTICE OF BOND SALE DESCHUTES COUNTY STATE OF OREGON GENERAL OBLIGATION BANCROFT IMPROVEMENT BONDS SERIES 1981 Notice is hereby given that sealed bids will be received by Deschutes County, Oregon, until ten o'clock a.m. (10:00 a.m.), Pacific Daylight Time, on October 7, 1981, at the of- fices of RAGEN, ROBERTS, O'SCANNLAIN, ROBERTSON and NEILL, Bond Counsel, 1600 Orbanco Building, 1001 S.W. Fifth Avenue, Portland, Oregon 97204, at which time they will be publicly opened and announced. The bids shall be considered and acted upon by the Board of County Commissioners of Deschutes County, Oregon, at its regular meeting to be held on Wednesday, October 7, 1981, commencing at ten o'clock a.m. (10:00 a.m.), Pacific Daylight Time. ISSUE: ONE MILLION SIX . HUNDRED THIRTY-FIVE THOUSAND AND N0/100 DOLLARS ($1,635,000.00) consisting of General Obligation Bancroft Improvement Bonds in denomina- tions of FIVE THOUSAND AND NO/100 DOLLARS ($5,000.00), all dated October 1, 1981. INTEREST RATE: Maximum not to exceed a net effective rate of twelve percent (12$) per annum, the first interest payment due on April 1, 1982, and semiannually thereafter on April 1 and October 1 of each year. Bidders must specify the interest rate or rates which the bonds hereby offered for sale shall bear. The bids shall comply with the fol- lowing conditions: (1) Each interest rate specified in any bid must be in multiples of 118th or 1/20th of one percent (1$), not exceeding a net effective rate of twelve percent (12%) per annum; (2) No bond shall bear more than one rate of interest, no interest pay- ment shall be evidenced by more than one coupon, and supplemental coupons will not be permitted; (3) Each bond shall bear interest from its date to its dated maturity date at the interest rate specified in the bids; (4) All bonds maturing at any one time shall bear the same rate of interest; and (5) The difference between the highest and lowest rates bid shall not exceed two percent (2%). MATURITIES: The bonds shall mature serially in numerical order as follows: Amount Date Amount Date $ 95,000 October 1, 1982 $165,000 October 1, 1987 105,000 October 1, 1983 185,000 October 1, 1988 115,000 October 1, 1984 205,000 October 1, 1989 130,000 October 1, 1985 230,000 October 1, 1990 145,000 October 1, 1986 260,000 October 1, 1991 REGISTRATION: The bonds will be issued in bearer form with no option for registration. -2- Vbl 40 PAl REDEMPTION: The County retains the right to call and redeem any or all of the bonds then outstanding in inverse numerical order on the following interest payment dates and at the following prices expressed as a percentage of the principal amount, plus accrued interest to the date of redemption: IF REDEEMED ON REDEMPTION PRICE October 1, 1987 and April 1, 1988 102% October 1, 1988 and April 1, 1989 101% October 1, 1989 and thereafter 100% Notice of any such redemption shall be given by mailing a notice thereof to Moody's In- vestors Service, Inc., and Standard and Poor's Corporation, New York, New York,, not less than thirty (30) days prior to the redemption date, and by publication of such notice at least once, not less than thirty (30) days prior to the said redemption date, in a news- paper specializing in financial matters published in the City of Portland, Oregon, and in a newspaper published and generally circulated in the City of Bend, Oregon. Interest on any bond or bonds so called for redemption shall cease on such redemption date, un- less the same are not redeemed upon presentation made pursuant to such call. PAYMENT: Principal and interest are payable, either at maturity or upon earlier redemp- tion, in lawful money of the United States at the office of the Deschutes County Trea- surer, Deschutes County Courthouse, Bend, Oregon. PURPOSE: The bonds are to provide funds for the construction of improvements to dedicated public rights of way in Deschutes County, Oregon. The bonds are being sold in consideration of applications to finance improvements in installments by property owners of property subject to liens for the improvements. SECURITY: The bonds of this issue are Bancroft Improvement Bonds, which are General Obligation Bonds of the County. The County has placed liens on property, and has covenanted to levy an ad valorem tax annually to pay bond principal and interest as they respectively come due. LEGAL OPINION: The approving opinion of RAGEN, ROBERTS, O'SCANNLAIN, ROBERTSON and NEILL, Lawyers, of Portland, Oregon, will be provided at no cost to the purchaser, and will be printed on the bonds at the expense of the County. TAX EXEMPT STATUS: Interest on the bonds, in the opinion of Bond Counsel, is exempt from taxation by the United States under present Federal Income Tax Laws, and from personal income taxation by the State of Oregon under present State Laws. BEST BID: The bonds will be awarded to the responsible bidder whose proprosal will result in the lowest net cost to the County. Successful bid will be determined by com- puting the total amount of interest which the County would be required to pay from the date of each bond to its respective maturity date at the coupon rate or rates specified, assuming no bonds are called prior to maturity, less premium offered, if any. The pur- chaser must pay accrued interest, computed on a 360 -day basis, from the date of the bonds to the date of delivery. The cost of printing the bonds will be borne by the County. -3- VEL 40 FAC 3'7 DELIVERY: Delivery of the bonds will be made without cost to the successful bidder at such bank in the City of Portland, Oregon, as the successful bidder shall name. Pay- ment for the bonds must be made in Federal funds. Delivery will be made within thirty (30) days. FORM OF BID: All bids must be for not less than all of the bonds hereby offered for sale, for not less than one hundred percent (100$) of the par value thereof, and accrued interest to the date of delivery. Each bid, together with bidder's check as herein speci- fied, must be enclosed in a sealed envelope, addressed to the County and designated, "PROPOSAL FOR BONDS". Bids must be received by ten o'clock a.m. (10:00 a.m.), Pacific Daylight Time. BID CHECK: All bids must be unconditional and accompanied by a certified or cashier's check for THIRTY-TWO THOUSAND SEVEN HUNDRED AND N01100 DOLLARS ($32,700.00), payable to the order of Deschutes County, to secure the County from any loss resulting from the failure of the bidder to comply with the terms of its bid. In addition, bidders are requested to supply the total interest costs and net effective interest rate, based upon the aggregate interest cost, if its bid be accepted, that the County will pay. upon the issue if the bid is accepted. Such information shall be considered as informative only. Checks will be forfeited to the County as liquidated damages in case the bidder to whom the bonds are awarded shall withdraw its bid or fail to complete its purchase in accor- dance with the terms thereof. No interest shall be allowed on the deposit, but the check of the successful bidder will be retained as part payment of the bonds, or for liquidating damages as described above. Checks of the unsuccessful bidders will be returned by the County promptly after award of bid. RIGHT OF REJECTION: The County, by its Board of County Commissioners, reserves the right to reject any and all bids. The County has prepared an official statement re- lating to the bonds, a copy of which will be furnished upon request. CUSIP: CUSIP numbers will be imprinted upon all bonds of this issue at the purchaser's request and expense. An improperly imprinted number will not constitute a basis for the purchaser to refuse to accept delivery. NO LITIGATION: At the time of payment for the delivery of said bonds, the County will furnish the successful bidder a certificate that there is no litigation pending that affects the validity of the bonds. FINANCIAL CONSULTANT: Deschutes County has employed, as financial consultant for the preparation of the official statement, the services of FOSTER & MARSHALL INC., 205 Columbia Street, Seattle, Washington 98104, (206) 344-3500. The financial consultant may submit a bid or participate in a bidding syndicate for the purchase of these bonds. FURTHER INFORMATION: The official statement and additional information regarding the County and this sale may be obtained from Richard L. Isham, Deschutes County Legal Counsel, Deschutes County Courthouse Annex, Bend, Oregon 97701; (503) 388-6623. ROSEMARY PATTERSON Deschutes County Clerk :ZIC wNuE438 $1,635,000 DESCHUTES COUNTY, OREGON GENERAL OBLIGATION BANCROFT IMPROVEMENT BONDS, SERIES 1981 AUTHORIZATION: The Bonds are issued under the authority of Oregon State Statutes (ORS 371.605 to ORS 371.660 and ORS 223.205 to 223.295) . SECURITY: The primary source of payment for these Bonds is the assessment upon the benefited properties which are being paid according to installment contracts filed with the County. Until fully paid, each assessment constitutes a lien on the prop- erty. Additionally, the full faith and credit of the County, including the levy of taxes upon all taxable property within the County without limitation as to rate or amount, is pledged to payment of principal and interest upon these bonds should there occur an insufficiency in assessment payments. PURPOSE: The projects financed consist of preparation and paving of approximately 24 miles of streets in seven residential local improvement districts. The bond proceeds will be used to reimburse the Road Fund and the Assessment Districts Operating Fund which financed 7 completed projects. All projects were initiated by residents of the area through a petition filed with the County. The petition must be signed by not less than 60 percent of the owners of the land representing not less than 60 percent of the land abutting the proposed improvement. DEBT LIMITATION: Oregon Revised Statute 371.655(3) sets the maximum Bancroft Bonds outstanding for a County at 3.75$ of the true cash value. True Cash Value (1980-81) ,. $2,048,686,312 Debt Limit (3.75$) 76,825,736 Bancroft Bonds (this issue) 1,635,000 Debt Margin ................................... 75,190,736 % of Limit Remaining 97.87$ FUTURE FINANCING: The County does not plan to issue additional debt in the foresee- able future, either for local improvements or other purposes. LITIGATION: There is currently no litigation of any kind or nature pending or threat- ened enjoining the issuance or sale of the Bonds. -5- .VOL Y0 PAcE 439 DESCHUTES COUNTY PROFILE Deschutes County operates under Oregon State Statutes and is not a home rule county. The County's governing body is made up of three elected full-time Commissioners. The Commission is responsible for the administration of the County in general. Other elected officials are responsible for their departments. TAXES: The total amount of ad valorem property tax that may be levied by the County is controlled by Article XI Section 11 of the Oregon Constitution. The amount to be levied in any fiscal year may not exceed the highest amount levied in the past three years plus 6%. Any amount above the 6% limitation must be approved by a vote of the people. Deschutes County's base for the 1978-79 fiscal year is $912,597.14. These tax revenues are used for the support of the County general fund and County School fund. Prior year tax collections represent monies received from the collection of taxes levied in any year prior to the current year and collected during the current fiscal year. The County levies and receives tax monies in the General School Fund, Solid Waste Dis- posal Fund, and until June 30, 1980, when it was abolished, the Library Fund. In addi- tion, the County maintains approximately 25 special revenue funds for which the revenues received can only be spent on specific purposes. PENSION PLAN: 216 employees of Deschutes County are members of the Oregon Public Employees Retirement System pension plan (1221 S.W. Yamhill, Portland, Oregon 97205) . Employers contributions as of June 30, 1980 totaled $345,152. The most recent actuarial study of OPERS indicated total assets of $1,130,967 and a 30 -year present value "unfunded liability" of $1,079,288 as of December 31, 1979. New employer rates were adopted to amortize this liability; the Deschutes County employer rate as of January 1, 1981 is 9.18$. -6- VOL 40 PAGE440 THE "BANCROFT" BONDING ACT Oregon Law (ORS 371.605 to 371.660 and ORS 223.205 to 223.295) enables counties to make street and road improvements in unincorporated areas and to issue general obligation im- provement bonds ("Bancroft Bonds") to finance the improvements. The Deschutes County Charter also authorizes the assessment of benefited properties to finance local improve- ments. ORS 371.605 to 371.660 establishes the methods and procedures by which the County may make local improvements and collect assessments. When the assessment is levied by the County Board, a lien is entered against the benefited property. The property owner has the choice of paying the complete assessment or paying over a determined period by filing an installment contract with the County. All of the assessment installment contracts have 10 year terms and charge 12% annual in- terest on the unpaid balance. Principal is paid in equal semiannual installments. There is no prepayment penalty. Each contract specifies that a delinquency in payment occurs 30 days after failure to make payment when due, and in that event all unpaid installments, including interest, shall be- come immediately due and payable, and that the total amount may be collected in any legal manner, including foreclosure of lien. ORS 371.660 provides that one year from the date an assessment is delinquent, the Board may collect unpaid assessments by advertisement and sale in the manner provided by law for the sale of real property on execution. The issuance of general obligation improvement bonds is prescribed by ORS 223.205 to 223.295, the "Bancroft Bonding Act". These bonds may be issued for the amount out- standing on installment contracts filed with the County. The bonds are retired from pay- ments upon the installment contacts, which may be prepaid in full at any time and usually are fully paid when the property is sold. The prepayments must be deposited in the Assessment Districts Bond Sinking Fund until the bonds are retired. The County has established this sinking fund solely for Bancroft Bond issues. Payments on the outstanding contracts will be deposited to this fund and debt service payments on these bonds will be made from the fund. The contracts earn the County 12% annual inter- est: therefore a deficit may occur in this fund during the later years of this bond issue. Since the bonds are backed by the general obligation of the County, taxes or other re- sources of the County can be applied if any shortfalls in debt service funds occur. The County has stated its intention to budget for the required monies in the General Fund should a deficit be projected for any subsequent year. Favorable investment rates during the term of this issue may generate sufficient earnings on fund balances, includ- ing contract prepayments, to avoid any deficits. -7- VOL 40 FAGE441 COUNTY INDEBTEDNESS: True Cash Value (1980-81) ........................ $2,048,686,312 Assessed Valuation (1980-81) $1,771,808,854 County Population ................................ 62,142 (1) (1) Source: U.S. Census OUTSTANDING DEBT (Including This Issue) (As of September 1, 1981) Series 1978 (G.O. Library Bonds) $ 325,000 Series 1981 (this issue) 1,635,000 Total .......................................... $1,960,000 OVERLAPPING DEBT (As of July 31, 1981) (1) (3) "Net Direct Debt" includes, General Obligation Bonds minus any fully self-supporting bonds (Bancroft Bonds, Sewer and Water Bonds if 100$ self-supporting) . Qi1 Overlapping Debt Gross Net Overlapping District(s) Assessed Valuation Percent Overlapping Bonded Debt (2) Direct Debt (3) S.D. S.D. #1 - Bond 1973 #1 $1,213,923,877 100.00 $ 1,345,000 $ 1,345,000 D escutes - Bond 1977 County S.D. 2J 1,214,074,177 407,871,116 100.00 94.45 9,675,000 4,675,275 9,675,000 4,675,275 S.D. #2J - Bond 1964 410,212,428 100.00 36,000 36,000 S.D. S.D. #2J - Bond 5 #2J - Bond 1968 409,579,068 100.00 20,000 20,000 Deschutes County S.D. #6 404,832,893 168,054,325 100.00 100.00 1,995,000 2,275,000 1,995,000 2,275,000 Central Oregon Comm Coll City of Bend 2,424,683,838 73.07 1,397,829 1,143,546 City of Redmond 453,097,227 155,330,919 100.00 100.00 13,996,900 653,000 9,375,000 653,000 City of Sisters 21,983,619 100.00 536,000 536,000 TOTALS $61,496,004 $56,619,821 (1) Source: Oregon Municipal Debt Advisory Commission. (2) "Gross Bonded Debt" includes all General Obligation and Bancroft Bonds. (3) "Net Direct Debt" includes, General Obligation Bonds minus any fully self-supporting bonds (Bancroft Bonds, Sewer and Water Bonds if 100$ self-supporting) . Qi1 VOL 40 FACE 442 BONDED DEBT RATIOS (Including This Issue Which is Considered Self -Supporting ) Excluding Self -Supporting Debt Including Self -Supporting Debt Direct Debt to True Cash Value ..................... .015$ .096$ Direct and Overlapping Debt to True Cash Value .... 2.78$ 3.10% Per Capita Direct Debt .............................. $ 5.23 $ 31.54 Per Capita Direct and Overlapping Debt ............. $916.37 $1,021.15 Per Capita True Cash Value ......................... $32,967 Value COUNTY TAX COLLECTION RECORD Entity 1980-81 Assessed Value Brooks Resources Corp. $54,595,755 Diamond International Corp. 23,515,590 Redmond Timber Corp. .................................. 12,857,060 Sunriver Properties Inc. 11,240,440 Boyd Center ........................................... 7,542,580 Bend Millwork Inc. .................................... 6,144,810 Bruckner Allen ........................................ 6,107,325 Hedecker, Fred Inc. ................................... 4,332,820 Mt. Bachelor Inc . ..................................... 4,300,000 Taygrim Investment Co. ................................ 3,600,185 Utilities Western Union Telegraph ............................... $45,744,878 Pacific Northwest Bell Telephone 35,971,171 Portland General Electric 23,473,914 Pacific Power & Light ................................. 20,355,425 United Telephone of the Northwest 9,742,207 (1) Source: Deschutes County Assessor Percent Collected Percent True Cash Year of Levy Collected Year Value Tax Rate Tax Levy (7/31/81) to July 31, 1981 1980-81 $2,048,686,312 $ .61 $1,092,642 86.12 N/A 1979-80 1,565,917,743 .96 1,523,410 90.80 94.38 1978-79 1,140,201,271 1.31 1,512,521 92.54 97.70 1977-78 840,101,675 1.57 1,323,858 93.65 99.16 1976-77 701,330,852 1.80 1,273,986 92.51 99.19 DESCHUTES COUNTY MAJOR TAXPAYERS (1) Entity 1980-81 Assessed Value Brooks Resources Corp. $54,595,755 Diamond International Corp. 23,515,590 Redmond Timber Corp. .................................. 12,857,060 Sunriver Properties Inc. 11,240,440 Boyd Center ........................................... 7,542,580 Bend Millwork Inc. .................................... 6,144,810 Bruckner Allen ........................................ 6,107,325 Hedecker, Fred Inc. ................................... 4,332,820 Mt. Bachelor Inc . ..................................... 4,300,000 Taygrim Investment Co. ................................ 3,600,185 Utilities Western Union Telegraph ............................... $45,744,878 Pacific Northwest Bell Telephone 35,971,171 Portland General Electric 23,473,914 Pacific Power & Light ................................. 20,355,425 United Telephone of the Northwest 9,742,207 (1) Source: Deschutes County Assessor VOL 40 FACE 443 PROPERTY TAX INFORMATION Assessment Procedures: Under Oregon law, property is appraised and assessed at 100 percent of its true cash (market) value. Uniformity of assess- ment is required by the Oregon State Constitution and to achieve this end, only state certified appraisers may appraise real property for tax purposes. By law, each property must be physically reappraised at least once every six years. Between physical apprais- als, the County Assessor annually updates the values listed on the assessment roll, based on the annual index of market sales data for each classification of property. This process is required to conform with the State requirement that all property classes be assessed annually at or within 5% of 100% of true cash value. The County Board of Equalization is required by law to meet each May to examine and equalize the assessment rolls. Public utility property is centrally assessed by the Oregon Department of Revenue. Tax Levies and Collections: The tax levy consists of the County's budgeted tax require- ment less estimated offsets for certain in -lieu payments. Under Oregon law, the tax rate is computed by dividing the levy requirement by the assessed valuation of the County. The amount which the County receives during the fis- cal year will vary from the levy due to prepayment discounts (up to 3% if the entire tax bill is paid by November 15), tax delinquencies, receipts from back taxes, penalties and the sale of foreclosed properties. In budgeting, a tax deferral and delinquency allowance is usually included, which includes up to 3% of the levy that will not be received due to the discounts. In its 1980-81 budget, the County used a 6.5% allowance. In figuring total levy collections to date, County Assessors adjust rolls so that a 100% collection rate is obtainable if there are only discounts and no delinquencies. The 1979 Legislature changed tax payment procedures. Formerly paid in quarterly in- stallments, taxes due for the 1980-81 tax year and thereafter are payable in three install- ments on November 151. February 15 and May 15, thereby dropping the prior fourth payment on August 15. Since the fiscal year ends June 30, the final August 15 payment made the collection rate for years prior to 1980-81 lower; however this payment was not "delinquent" and was counted toward the proper levy in the recent collection rates. For 1980-81 and thereafter, the collection rate will reflect actual current year collections during each fiscal year. Formerly, taxes on real property not paid by August 15 were declared delinquent; as of 1980-81 the delinquency will be declared on May 15. Taxes on personal property become delinquent whenever any installment is not paid on time. Regardless of their term, in- stallment payments after their due date accrue interest at the rate of 1% per month until paid. Three years after taxes have become delinquent, real property is subject to fore- closure. Personal property is subject to seizure 90 days after delinquency. As each year's taxes for all taxing bodies within a county are collected, the money is placed in an unsegregated pool and each taxing body shares in the pool on the basis of its tax rate regardless of the actual collection experience within each taxing body. There- fore, in application, the amount of each taxing body's levy becomes a county -wide levy, and the tax collection record of each taxing body becomes a pro rata share of the total tax collection record of all taxing bodies within the County. Thus, an overall collection rate of 90% of the county -wide levy indicates a 90% tax levy collection for each taxing body. Until such time as distribution of tax monies is authorized by the Tax Collector, all interest earned on deposits to the unsegregated account is credited to the County. -10- Year 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 GENERAL OBLIGATION BOND DEBT SERVICE Outstanding Debt Service $40,329 38,395 36,715 49,895 47,935 50,852 48,625 51,250 GENERAL AND ECONOMIC INFORMATION portion of the State of Oregon, east of County Seat, is located in approximately mately 160 miles southeast of Portland. Redmond and Sisters. Population history below: Y12` 40 PmE 444 This Issue Principal Interest @ 12%- Total $ 95,000 $196,200 $291,200 105,000 184,800 289,800 115,000 172,200 287,200 130,000 158,400 288,400 145,000 142,800 287,800 165,000 125,400 290,400 185,000 105,600 290,600 205,000 83,400 288,400 230,000 58,800 288,800 260,000 31,200 291,200 Deschutes County, which encompasses an area of 3,060 square miles, is located in the central the Cascade Mountains. The City of Bend, the the center of Deschutes County and is approxi - The three main cities in the county are Bend, of these cities and the entire county are shown POPULATION HISTORY Source: 1980, 1970, and 1960 are U.S. Census figures; 1979, 1978, 1977, and 1975 are estimates by the Portland State Center for Population Research and Census. (*) indicates estimate by Portland State Center; probably high, and was revised in following year. -11- Deschutes County Bend Redmond Sisters 1980 62,142 17,263 6,452 696 1979 54,500 17,800* 5,950 750 1978 49,700 16,800 5,575 750 1977 46,800 16,500 6,250* 775* 1975 40,300 15,800 4,525 730 1970 30,442 13,710 3,721 516 1960 23,100 11,936 3,340 602 Source: 1980, 1970, and 1960 are U.S. Census figures; 1979, 1978, 1977, and 1975 are estimates by the Portland State Center for Population Research and Census. (*) indicates estimate by Portland State Center; probably high, and was revised in following year. -11- VOL 40 %E445 Lumber and wood products employment was sharply reduced during the first half of 1980, but most firms in the industry have since restored employment to near pre -recession levels. However, the industry has recently reached a plateau in its recovery due to in- creases in mortgage interest rates. Building construction in 1980 was about 20% below the record-breaking 1979 pace, but is considered vigorous in view of high mortgage rates and depressed economic conditions. Over the past several years, the major contributor to economic growth has been expansion in recreation /vacation activity and resident population growth. Employment in construc- tion, real estate and finance has grown to support activity in property sales and resi- dential, vacation home and commercial construction. In addition, the development of recreation -oriented business has created many low-paying seasonal jobs in the service and trade industries which appear to have attracted a sizeable population of nonresident young people. Expansion of facilities at Mt. Bachelor ski area include two new lifts already in construction and an additional five lifts that have been approved. Presently, the resort operates seven ski lifts. Central Oregon Community College, located two miles west of Bend, is a two year college offering programs in the liberal arts, vocational education, developmental studies and com- munity education to residents of Central Oregon. Current enrollment is 1,600 full-time and more than 2,000 part-time students. DESCHUTES COUNTY ASSESSED VALUATION (1) 1980-81 ................................ $1,771,808,854 1979-80 ................................ 1,565,917,743 1978-79 ................................ 1,140,201,271 1977-78 .. 840,101,675 (1) Source: Deschutes County Assessor -12- DESCHUTES COUNTY BUILDING PERMITS (1) Number of Number of Total New Residential New Commercial Value (2) 1980 1979 813 128 1,148 $60,594,271 1978 174 1,778 150 73,659,958 1977 1,417 100 83,241,056 1976 959 86 59,657,702 33,263,205 (1) Source: Deschutes County Building Department (2) Includes value of new residential and commercial, as well as mobile homes, alterations, access buildings and remodeling permits. According to the Deschutes County Extension Office, county agricultural income in 1980 is estimated Revenue from at $13,335,000 compared to $12,407,000 in 1979 and cattle and $10,306,000 in 1978. tural income. calves alone contributes approximately one-third to total agricul- There are 59,103 acres of cropland in the County of which 54,667 acres (92$) are under irrigation. Over the past several years, the major contributor to economic growth has been expansion in recreation /vacation activity and resident population growth. Employment in construc- tion, real estate and finance has grown to support activity in property sales and resi- dential, vacation home and commercial construction. In addition, the development of recreation -oriented business has created many low-paying seasonal jobs in the service and trade industries which appear to have attracted a sizeable population of nonresident young people. Expansion of facilities at Mt. Bachelor ski area include two new lifts already in construction and an additional five lifts that have been approved. Presently, the resort operates seven ski lifts. Central Oregon Community College, located two miles west of Bend, is a two year college offering programs in the liberal arts, vocational education, developmental studies and com- munity education to residents of Central Oregon. Current enrollment is 1,600 full-time and more than 2,000 part-time students. DESCHUTES COUNTY ASSESSED VALUATION (1) 1980-81 ................................ $1,771,808,854 1979-80 ................................ 1,565,917,743 1978-79 ................................ 1,140,201,271 1977-78 .. 840,101,675 (1) Source: Deschutes County Assessor -12- VAI 40 PACE446 . DESCHUTES COUNTY TOTAL RETAIL SALES (1) 1981 Estimate ..................................... $408,285,000 1980 Estimate ..................................... 362,562,000 1977 U.S. Census .................................. 234,503,000 (1) Source: 1981 Editor 6 Publisher Market Guide DESCHUTES COUNTY BANK DEPOSITS (1) 1981 (through June 30) $267,944,000 1980 .................................... 292,366,000 1979 .................................... 282,256,000 1978 .................................... 242,877,000 19 7 7 . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . 18 5 , 8 7 1 , 0 0 0 19 7 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13 1 , 7 3 3 , 0 0 0 (1) Source: Oregon Department of Commerce, Banking Division. "Bank Deposits" are defined as "total deposits of all banks"; included are national banks in Oregon in addition to banks and trust companies under the jurisdication of the Banking Division of the Oregon Department of Commerce. -13- 40L 40 'A,447 APPENDIX DESCHUTES COUNTY, OREGON FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1980 -14- BONMA 10 & BAff ZON VOL 0 PACE 448 CERTIFIED PUBLIC ACCOUNTANTS, P.C. 1183 N.W. Wall St.. Suite C • Bend. Oregon 87701 • (503) 389.3080 October 16, 1980 Board of Commissioners DESCHUTES COUNTY' Bend, Oregon We have examined the basic financial statements of the various funds and account groups of DESCHUTES COUNTY, OREGON for the year ended June 30, 1980, as listed in the accompanying contents. Except as noted in -the following paragraph, our examination was made in accord- ance with the provisions of the "Minimum Standards of Audit Reports, Certifi- cates, and Procedures for Oregon Municipal Corporations", and in accordance with generally accepted auditing standards. Accordingly, our examination in- cluded such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Circuit Court Trust Account was not available for our examination. The trust account is used by the circuit court to receive and disburse court ordered child support payments. We are unable to express an opinion on the transactions in this account for the fiscal year ended June 30, 1980. Since this account is a separate trust account under control of the County Clerk we have not included the transactions nor beginning or ending balances in this report. In our opinion, except as noted above, the aforementioned financial statements present fairly the financial position of the various funds and account groups of DESCHUTES COUNTY, OREGON at June 30, 1980, and the results of operations of such funds for the year then ended in conformity with generally accepted account- ing principles applied on a basis consistent with that of the preceding year. The accompanying supplemental schedule and related information presented under "Additional Information" are not necessary for a fair presentation of the basic financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical data. This information has been sub- jected to the tests and other auditing procedures applied in the examination of the basic financial statements mentioned above and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Certified Public Accountants -1- DESCHUTES COUNTY, OREGON ACCOUNTANTS' COMMENTS June 30, 1980 Accounting Records and Internal Control The County records and reports are generally well maintained. Th the County were reviewed and the internal control was found to be the staff available in the offices. Various recommendations have needing attention. These recommendations have been submitted to sioners by a separate letter. Cash and Investments VOL 40 PnE 449 e various offices of adequate based on been made in areas the County Commis - The cash in bank was adequately secured throughout this year by collateral pLledged by the depositories plus Federal Deposit Insurance Corporation coverage in all County offices. Debt Limitation The County has not exceeded its.debt limitation. Budget, Appropriations, and Tax Levies A review of the budget, appropriations resolution, and the tax levy, certified to the assessor for the current and ensuing years indicated compliance with statutory provi- sions. Appropriation for expenditures for all budgeted funds was made in categories of personal services, materials and services, and capital outlay. Actual expenditures compared to appropriations are included as supplemental information. Insurance Coverage and Fidelity Bonds The County administrative staff maintains controlof the insurance coverage of the County assets. Their duties include periodic review of the coverage. The coverage as of June 30, 1980, appears adequate. Fidelity bond coverage complies with statutory provisions and appears adequate. Programs Funded From Outside Sources RevenueSharing The Revenue Sharing Fund was reviewed and complies with the Federal requirements. The records and reports were in agreement with the reports submitted to the officE of Revenue Sharing. -2- Programs Funded From Outside Sources - Continued CETA Payroll Program VOL 40 PAF 450 The County participated in the CETA Program during 1978-79. A review of this program indicated compliance with Federal guidelines. Employees hired under the program were certified by the State Department of Human Resources as to their eligibility. Other State Funded Programs The County participated in various State grants. A review of each of the grants indicated compliance with the requirements of the program. In addition to our examination of the program grants, they are subject to re- view by the various agencies. Circuit Court Trust Account The Circuit Court Trust Account was not available for our examination for the year ended June 30, 1980.. We feel that the inclusion of this account in the examina- tion of the COUNTY'S financial transactions is necessary because of the fiduciary capacity of the COUNTY. We recommend that the County Board of Commissioners take steps to ensure that the County Clerk keep the accounting records of this trust account on a timely basis. -3- DO IIIEDI 6 VON DESCHUTES COUNTY, OREGON COMBINED BALANCE SHEET ALL FUNDS June30, 1980 Assets Current Assets Cash and investments Taxes receivable Accounts receivable Land sales contracts - current portion Assessments receivable - current portion Inventories Total current assets Property and Equipment (Note 2) Buildings Books Office equipment Heavy equipment and vehicles Total property and equipment Other Assets Land sales contracts - net of current portion Assessments - net of current portion Provision for long-term debt Total other assets Total assets Liabilities and Fund Balance Current Liabilities Cash deficit Matured bond coupons Current portion bonded debt Total current liabilities Long-term Debt Bonds Payable Fund Balance Investment in Property and Equipment Pending Distribution to Others Total liabilities and fund balance VOL 40 FacF 451 County County General Schools Roads $494,097 $ -- $1,555,400 303,604 18,137 43,452 -- 12,763 4,700 -- 1,000 -' -- 58,913 -- _ 87,416 845,853. 182137 _1,7152492 47,516 -- 11,980 '- -- 302,858 _47,516 -- 314,838 893 369 18 137 2,030.3& 893,369 18,137 2,030,330 893 369 JIL137 2 030 330 VOL 40 FAGE County Other General Trust Library Debt Funds Fixed and Service _(Scheduled) Assets Agency $ 47,056 $ 971,229 $ -- $20,707,108 7,809 -- -- 4,650,029 '- -- -- 32,000 54,865 971,229 - 25,389,137 -- -- 9,591,754 -- -- -- .771,862 -- -- -- 1,523,957 -= -- -- 2,245,263 -- -- -- 14,132,836 -- -- -- -- 222,068 355,000 -- __ -- 355,000 -- -- 222,068 $ 409,865 971,229 $14,132,836 125,611.2n5 -- $ 21,773 $-- 937 -- 30 ,000 - 30,937 21,773 -- 325,000 -- 53,928 949,456 -- 14,132,836 -- -' -- -- 25,611,205 5.- 409,865 J==27=1 229 $14,132.836 525.611.20_ The accompanying notes are an integral part of these financial statements -4- WD IN B Odi1lISON DESCHUTES COUNTY, OREGON SUMMARY STATEMENT OF RECEIPTS AND EXPENDITURES D CH NG S INFUND B LANCE ALL FUNDS Year En e-3 'June 3p 1980 Fund Balance July 1, 1979 Less reserve for accounts receivables and inventories Beginning Current Surplus Revenue Budgeted including beginning cash balance Actual Expenditures Budget Actual Budgeted Unappropriated Ending Balance Actual Ending Unappropriated Balance Reserve for Receivables and Inventory VOL 40 %E 453 County County General Schools Li_ 'brar� $ 1,405,402 $ 17,156 $ 80,921 218,562) 17,156) 51,105; 1,186,840 -- 29,816 (4,988,238) (1,345,173) (322,808) 4,188,366 1,243,747 299,318 4,988,238 1,345,173 322,808 (4,881,109) (1,243,747) (329,134) 494,097 399,272 18,137 893.369 j===1=8 =j_37 40 PAGE 454 Solid 46,335 County Other Waste County Library Debt Funds Disposal Roads Service Scheduled $ 285,320 $ 698,272 $ 64,405 $ 1,038,272 70,473) ( 252,987) ( 8,956) -- 214,847 445,285 55,449 1,038,272 (576,466) (5,310,931) ( 86,421) (3,671093) 472,988 4,670,208 37,943 2,659,472 576,466 5,310,931 46,335 3,671,993 (687,835) (3,560,093) ( 47,273) (2,748,288) -- -- 40,086 -- 1,555,400 46,119 949,456 -- 474,930 7,809 -- -2 030 330 2,030,330 $ 53,928 949,456 The accompanying notes are an integral part of these financial statements -5- to a a IUM DESCHUTES COUNTY, OREGON VEL 40 PAGE 455 STATEMENT OF RECEIPTS AND EXPENDITURES ALL FUNDS Year EndedJune 30, 1980 The accompanying notes are an integral part of these financial statements -6- no IMM 8 Muffsow Beginning Receipts Expenditures Ending Available Cash Balance and Transfers and Transfers Available Cash Balance General $ 1,186,840 $ 4,1889366 $ 4,881,109 $ 494,097 County Schools -- 1,243,747 1,243,747 County Library 292817 299,317 329,134 Solid Waste Disposal 214,847 472,988 687,835 County Road 445,285 4,670,208 3,560,093 1,555,400 Other Funds (Scheduled) 1,093,721 2,697,415 2,795,561 995,575 970,510 JUA72,041 13,497,479 $ 3.045,072 The accompanying notes are an integral part of these financial statements -6- no IMM 8 Muffsow DESCHUTES COUNTY, OREGON SUMMARY STATEMENT OF RECEIPTS AND TURNOVERS VARIOUS COUNTY OFFICERS AND DEPARTMENTS Year Ended June 30, 1980 County Assessor Prepaid tax collections Farm deferrals Mobile homes Plats Personal property Forest and deferrals Miscellaneous sales and fines County Clerk Fees and licenses Land sale deposits Circuit Court ..Trust- Information unavailable -See Comments Circuit Court fines and bails District Court - Bend District Court - Redmond Treasurer's Tax Collection Department Tax collections Funds pending disposition Judgements and foreclosures Sheriff's Mileage and Fees County Surveyor County Annex Cashier Treasurer's Office (See Schedule) VOL 40 PAGE456 Balance On Hand July 1, 1979 65,095 56,240 85,618 5,133 16,413 10 Receipts 1979-80 $ 55,727 102,094 97,744 13,976 2,967 5,494 ,$ 228,509 1__278,002 $ 25 $ 375,081 114 80 173,477 427,135 21,262 696,829 9,750 111,611 $ 204,628 1 610 736 $ 300 2,343 $22,924,282 10,021 3,870 2,643 $22,938,179 $ 1,441 300 640. $ 7,871 $ 50 579,892 11,785,918 $84,700,036 V7l 40 FADE 457 Less Turnovers County Tax Balance Treasurer Collector Others June 30, 1980 $ -- $ 86,775 $ 17 $ 34,030 -- 78,885 26,353 53,096 -- .121,204 31,104 31,054 -- 12,040 1,702 5,367 16,413 -- 2,967 5,494 -- -- 10 $ 5,494 315 317$ 59,176 126,524 $ 354,711 $ -- $ 20,370 $ 25 -- 84 110 5,809 -- 423,124 171,679 2491,256 -- 453,682 15,153 50,230 -- 70,759 372 $22,618,652 $ -- $ 305,630 $ 300 -- .4,606 7,764 3,870 -- -- __ $22,622,522 310,236 $ 8,064 87,371 210,873 $ 3,837 7,871 $ $ _- 544,637 35,255: $ 50 $ -- .$ $72,733,774 $ 23,752,180 The accompanying notes are an integral part of these financial statements -7- w IWIM I BRIM Note 1 - Accounting Policies DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS June 30, 1980 Basis of Accounting 011 40 4�R DESCHUTES COUNTY uses the modified accrual basis of accounting for all funds. This method of accounting is in compliance with generally accepted accounting principles. Revenues for property taxes and other receivables are not recorded as income until re- ceived in cash. Expenditures are recorded when incurred by the County. Inventory of the County Road Fund is charged to expenditures at the time of purchase. Receivables and inventory are shown as assets of the County. A portion of the Fund Balance is reserved for these assets to show the current surplus available to finance the Governmental operations during the ensuing year. Appropriations Expenditures in all funds are controlled by appropriations adopted by resolution of the County Commission in categories in accordance with the Local Budget Law. Note 2 - Property and Equipment Property and equipment are shown at estimated values. An appraisal of the assets was made as of May, 1972. The County has established procedures of physical control bf the assets. An allow- ance for depreciation has not been reported in these finoncial statements. Note 3 - Tax Transactions The County tax transactions are shown in Schedule A-3 of the Additional Information. Following is a summary of the tax levy certified and the various offsets applied to reduce the levy: Certified to the Assessor Education Service District Offsets Eastern Oregon Timber Severance Amounts to be Raised by Other Counties Gain Due to Rounding Special Assessments Unzoned farm lands Forest lands and open spaces Late filings Special Assessment Districts Net to be extended on rolls all $ 26,623,831 ( 1,297,575) 92,363) 1,066,579) 93,072 $ 102,875 17,211 11,338 131,424 149,54.7 $ 24,541,357 NOTES TO FINANCIAL STATEMENTS - Continued a von �� 459 Note 3 - Tax Transactions - Continued Information relating to the County tax levies and collections during the fiscal last three years is as follows: 1979-80 1978-79 1977-78 Current Year's Levy Collections on Current Levy $24,541,357 $19,133,922 $ 18,237,183 Percentage of collections 20,523,001 83.6 16,362,058 85.5 15,840,076 Percentage of levy uncollected at end of year 14.4 12.4 86.9 11.4 Percentage of discounts and adjustments to levy Prior Years' Taxes Receivable at Beginning of 2.0 2.1 1.7 Year Collections on Taxes and Interest 3,538,622 2,095,651 3,130,998 2,124,895 3,051,359 2,204,997 Percentage of collections 59.2 67.9 72.3 Percentage of uncollected at end of year 40.8 37.1 34.2 Of the total County wide levy, the following are the percentages of the levy: Levy Percent County Funds $ 1,523,411 6.2 Cities Fire Protection 1,952,661 8.0 Road Districts 1,031,585 38,691 4.2 Park Districts 730,630 .2 3.0 Schools Hospitals 18,914,065 77.0 Other Districts 196,549 153,765 .8 .6 124,541,357 100.0 Note 4 - Land Sale Contracts Receivable As of June 30, 1980, there were twenty-six separate land sales contracts outstanding with aggregate face values of $320,275. Contract balances by fund are as follows: General Fund - Sunset Nursing Home $ 52,216 County Road Fund - Fair Association 12,980 Land Sale Fund - Contracts For Sale of Tax Foreclosed Land 255,079 Note 5 - Abolishment of Certain County Funds The County Commission, by resolution, abolished certain County funds. The operation and maintenance of the facilities of two of these funds, the Library and Solid Waste will be, in the ensuing years, budgeted for as a department of the County General Fund. The fund balance of these funds were transferred to the General Fund as of June 30, 1980. Other funds were closed since the purpose for which they were created no longer existed. MS so IMN B Bkpash ,NOTES TO FINANCIAL STATEMENTS - Continued va 40 PAGE 460 Note 6 - Pension Plan DESCHUTES COUNTY participates in the State of Oregon Public Employees Retirement System, (PERS). All employees of the County are covered by the plan after six months of employ- ment, except employees under -Comprehensive Employment Training Act, (CETA). The PERS is a defined benefit plan to which employees and employers both contribute. The rate of employee contribution is established by law. The rate of employer contribu- tion is set by the Public Employees Retirement Board, based on actuarial valuation. A separate contribution rate is determined for each public employer. The employer contri- bution rate for DESCHUTES COUNTY for fiscal year 1979-80 was 9.01 percent of qualified employee compensation. The total pension expense for the County in fiscal year 1979-80 was $345,152. The most recent actuarial valuation of PERS as of December 31, 1979 indicated that there was an unfunded liability for benefits due current employee participants in the plan. That unfunded liability for DESCHUTES COUNTY as of December 31, 1979, the latest date for which such information was available from the Retirement Board, was $1,079,288 after taking into account PERS assets allocated to DESCHUTES COUNTY of $1,130,967. The rate of employer contribution established by the Board for the period July 1, 1980, to December 31, 1980, is 9.90 percent. The.rate based on the December 31, 1979 actua- rial valuation starting January 1, 1981 will be 9.18 percent. These rates are subject to change as a result of any subsequent valuations. Note 7 - Deferred Compensation Plan DESCHUTES COUNTY by Commission action, authorized a deferred compensation plan to be made available to its employees wherein they may execute an individual agreement with the County for amounts earned by them not to be paid until a future date when certain circumstances are met. These circumstances are: Termination by reason of death, dis- ability, resignation, or retirement. Payment to the employee will be made over a per- iod not to exceed 15 years. The deferred compensation plan is an unqualified plan under the Internal Revenue Code. ' Moneys accumulated by the County under its deferred compensation plan have been de- posited with Equitable Savings and Loan Association. These deposits are not subject to the collateral requirements of Oregon law. Amounts accumulated by the County under the deferred compensation plan are, under Ore- gon law, excluded from resources for budgetary purposes. Such amounts represent a gen- eral liability by the County to its employees whose rights are equal to but no greater than the rights of other general creditors with respect to such amounts. Similarly, disbursement of funds to employees under the plan, once circumstances of termination occur, are not included as expenditures for budgetary purpose., The amount of the funds on deposit under the plan as of June 30, 1980, is $137,017 which is attributable to the accumulation of amounts deferred since the inception of the plan, and of satisfying the legal requirements for excluding such amounts as a budgetary re- source, and does not represent a segregation of fund balance with respect to these ac- cumulations which grants any preference to the claims of one group of creditors over another. -10- ►NOTES TO FINANCIAL STATEMENTS - Continued Vol� ry ,cf ��.. Note 8 - Contingent Liabilities The County Counsel has informed us that there are several claims against the County. The claims are seeking damages for faulty stop sign maintenance, false arrest, injury suffered while in the County jail, faulty building inspection, and a negligence claim for icy highway. The potential loss that the County may have as a result of these claims cannot be esti- mated at this time. Some of the claims are covered by insurance. -11- W IMM B BARIESON "1, :, 1 VOL 4J pAu,F4s? DESCHUTES COUNTY, OREGON EXPLANATORY COMMENTS June 30, 1980 DESCHUTES COUNTY operates several funds under the direction of the Board of Commis- sionsers. The County is not a Home Rule County, it operates its affairs under State statutes. The County's governing body is the Commission which is made up of three elected full time Commissioners. The Commission is responsible for the Administration of the County in general. Other elected officials are responsible for the administration of their specific departments. The elected County officials responsible for their depart- ments are: District Attorney, Clerk, Sheriff, Treasurer, Assessor, and Surveyor. The funds are described as follows: General Principal Revenue: Property taxes on local property, fees, fines, and licenses of local residents. Purpose of Expenditures:_ To supply services of County government as required by State and County laws and requested by the County residents. All activities not specifically asigned or delegated to a special fund are financed from the General Fund. This in- cludes the Assessor's, Clerk's Treasurer's, Sheriff's, and County Commissioners' of- fices. Other departments for public safety and welfare are also financed through the General Fund. County School Principal Revenue: Property taxes on local property and Federal forest receipts. Purpose of Expenditures: The funds are apportioned to the school district of the County. County Library - Library Trust and Library Capital Project Principal Revenue: Property taxes on local property and assistance from the City of Bend. Purpose of Expenditures: Funds are used for the operation and maintenance of the County Library. This fund has been abolished as of June 30, 1980, and the fund balance transferred to the General Fund. Solid Waste Disposal Principal Revenue: Property taxes on local property and fees charged commercial users. Purpose of Expenditures: The funds are restricted in use. Expenditures from this fund are only for the operation and maintenance of solid waste disposal sites in the County. This fund has been abolished as of June 30, 1980, and the fund balance transferred to the General Fund. -12- EXPLANATORY COMMENTS - Continued 40L 4 4G`� County General Road Principal Revenue: State Motor Vehicle apportionment and Federal forest receipts. Purpose of Expenditures: The use of expenditures is restricted for use only for opera- tions, maintenance, and building of roads and parks. County Library Debt Service Principal Revenue:` Property taxes on local property. Purpose of Expenditures: Payment of bond principal and interest. Road Building and Equipment Reserve Principal Revenue: Transfer from County Road Fund and sale of equipment. Purpose of Expenditures: To acquire equipment and buildings for use by the Road Depart- ment. Intragovernmental Service Principal Revenue and Purpose of Expenditures: This fund was established to supply services, repairs, and maintenance to County owned vehicles. Revenue is on a direct cost reimbursement. Dog Control Principal Revenue: Sale of dog licenses. Purpose of Expenditures: Dog control within the County. Law Library Principal Revenue: An allocation of fines and fees from'County courts. Purpose of Expenditures: Maintenance of a legal library in the County. Forest Patrol Principal Revenue: United States Forest Service. Purpose of Expenditures: Sheriff patrol of the forest roads in the County. Marine Patrol Principal Revenue: Apportionment from the Oregon State Marine Board. Purpose of Expenditures: Sheriff patrol of the County waterways. Family Planning and Day Treatment Principal Revenue: State Grants and fees. Purpose of Expenditures: To provide assistance in family planning. -13- to 1NVEUl B WON EXPLANATORY COMMENTS - Continued NIDA - 953 Grant, Drug Treatment Community Corrections Grant Principal Revenue: State Grants Grant Service Coordinator, Pa Traininq, and Purpose of Expenditures: For personal services and materials and services for the pro- grams as defined by the State Grants. Alcohol Fund Principal Revenue: Liquor tax and State Grants. Purpose of Expenditures: To control and prevent alcoholism. LCDC Grant Principal Revenue: State Planning Grant. Purpose of Expenditures: To develop a land use plan for the County. CETA Grant Principal Revenue: Federal Funds. Purpose of Expenditures: To provide employment. Museum Principal Revenue: Land sale funds, an apportionment of the County's cost and State Grant. Purpose of Expenditures: Maintenance of the Pioneer Museum. Taylor Grazing Principal Revenue: Federal Grazing apportionment. Purpose of Expenditures: For range improvement. No expenditures were made in 1978-79. Transient Room Tax Principal Revenue: Tax on lodging in the County. Purpose of Expenditures: To promote tourism and transfer to the*General Fund to support County services. Revenue Sharina Principal Revenue: Allocation of Federal funds through the office of Revenue Sharing. Purpose of Expenditures: The funds are not restricted in their use by the office of Revenue Sharing. The funds are used for priority expenditures as determined by the local government recipient. The priorities for DESCHUTES COUNTY has been established and expenditures were made for public safety, library, and general operations of the County. -14-