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2017-163-Minutes for Meeting March 20,2017 Recorded 4/17/2017Recorded in Deschutes County Nancy Blankenship, County Clerk CJ2017-163 Commissioners'Journal 04/17/2017 9:26:06 AM For Recording Stamp On Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97703-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS Allen Conference Room Monday, March 20, 2017 Present were Commissioners Anthony DeBone and Phil Henderson. Commissioner Tammy Baney was excused for another meeting. Also present were Tom Anderson, County Administrator, Erik Kropp, Deputy County Administrator; David Doyle, County Counsel; and Sharon Ross, Executive Secretary. Attending for a portion of the meeting were Whitney Hale, Public Information Officer; Jeanine Faria, Accounting Manager; David Givans, Internal Auditor, Chris Doty, Public Works Director; and Judith Ure, Management Analyst. No representatives of the media or citizens were in attendance. CALL TO ORDER. Vice Chair DeBone opened the meeting at 1:38 p.m. ACTION ITEMS 1. Consideration of Extension 4H Loan: Dana Martin, Regional Administrator and Candi Bothum, County Leader of Oregon State University Extension 4H were present. Wayne Lowry, Finance Director included the analysis of the loan request from County Service District Extension/4H with the intent to expand the building space at the fairgrounds facility. The Extension 4H district has an estimated $500,000 saved and requests a loan from the County to fund the balance of the project that is estimated at $2 million. History, programs, and funding of Extension Service/4H were reviewed. The extension service staffing includes 30 within Central Minutes of Board of Commissioners' Work Session March 20, 2017 Page 1 of 4 Oregon with 13.5 positions located within Deschutes County. County Administrator Anderson inquired if the local tax rate funds a certain specific program or contributes to the County as a whole. Ms. Martin replied it contributes toward the Deschutes County as a whole. Discussion held on the proposed budget at the state level. Mr. Lowry noted this concept was brought forward to the budget committee last year and the request was made to review the needs and costs of the expansion and details were presented to the Board today. The new construction would be approximately 5,000 square feet. Commissioner DeBone explained since Commissioner Baney was not present he feels a decision would not be able to be made today. Commissioner Henderson commented he was a member of 4H when he was young and is supportive of the concept. Commissioner Henderson commented as a builder he does not see this project costing $2 million and feels it would only cost $1.2 million and would be willing to review the contractor's estimate. County Administrator noted the county architect provided the estimate. Mr. Lowry noted there is a need for a loan even if efficiencies could be found with the current estimate and is looking for guidance from the Board. Commissioner DeBone noted his support but would look at 20 years and capital matching strategies and community outreach could be sought out. Discussion held on the option of capital campaigns. The Board asks for more time in reviewing the request and possible options. County Administrator Anderson inquired on additional information needed for the review process. Commissioner Henderson would like to tour the current facility to review the needs. Commissioner DeBone requests the item come back for review in a week or two and asks for clarification of building fund needs. County Administrator Anderson asked Mr. Lowry for a customize amortization schedule for a 20 year term. A short break was taken at 2:43 p.m. The meeting was back in session at 2:58 p.m. 2. General Fund/Tax Analysis: Wayne Lowry, Finance Director reported on general fund obligations, property taxes, and debt service/reserves. Mr. Lowry's narrative included property tax rate history. Mr. Lowry noted the presented information will provide the opportunity for the Board to review and discuss the information during the budget process of fiscal year 2018. Mr. Lowry reviewed the schedules noting general revenues, net operating departments, transfers out, and fund balances for fiscal years 2000 — 2017. Commissioner Henderson pointed out in the last 10 years the general fund property tax revenues have increased by 50% and noted the money placed in reserves should be monitored. David Givans suggested the process of money placed in PERS reserves should be explained. Mr. Minutes of Board of Commissioners' Work Session March 20, 2017 Page 2 of 4 Lowry explained the money goes into PERS reserves based on salaries and rates and we charge each type of employee the same rate across the County for contributions to PERS reserves. Funds in PERS reserve are tracked and charged to departments. Information will be available the beginning of May, prior to the budget hearings, regarding Fund 142 General County Projects including draft future major maintenance needs and projected general capital needs. Commissioner DeBone asked for information on payment in lieu of taxes (PILT). Chris Doty, Public Works Director was present and reviewed the funding and policy choices. Mr. Doty explained PILT has a formula for distribution to counties based on either a flat rate or methodology that factors other revenue dollars received. With Secure Rural Schools funding (SRS) gone it goes back to 1908 legislation where counties receive 25% of forest receipts. County Administrator Anderson noted National Associations of Counties (NACo) will advocate for PILT. Commissioner Henderson believes the federal government owes Deschutes County because they have all of these federal lands within the county and asks what we could do to communicate our need with our national legislators. County Administrator Anderson suggested using correspondence as also previously sent from the County. Commissioner Henderson asked for this discussion of legislative committees on the next work session agenda. 3. Finance Update: This item will be postponed this month. OTHER ITEMS 4. Joint Meeting with City of Bend regarding the topic of UGB expansion: Peter Gutowsky and Matt Martin, of the Community Development Department, and Chris Doty, Public Works Director were present to review the request of the Bend City Council regarding the joint management agreement and title 19A. The current agreement was placed in effect in 1998. The proposed amendments were presented to the Board. The City Council is interested in a joint work session for discussion with a tentative date of April 11, 2017. The City would then hold a public hearing separately. Commissioner DeBone requested a map of the parcels involved. Commissioner Henderson likes the idea of a joint meeting with the City but requests information to be presented for review prior to that work session. A review meeting will be held a week prior to the Joint Work Session. Minutes of Board of Commissioners' Work Session March 20, 2017 Page 3 of 4 5. County Administrator Anderson reminded the Board of this Wednesday evening's dinner with the Circuit Court Judges. 6. Commissioner DeBone noted he is getting calls regarding marijuana greenhouses and is wondering on the best method of communications. Peter Gutowsky, CDD suggested to send any inquiries to the Community Development Department. At this time of 3:59 p.m., the Board went into Executive Session under ORS 192.660 (2) (d) Labor Negotiations. The Board came out of Executive Session at 4:25 p.m. ADJOURN: Being no further discussion, the meeting adjourned at 4:25 p.m. DATED this Day of /°e 2017 for the Deschutes County Board of Commissioners. ATTEST: Recording Secre ry i Tammy Baney, Chair Anthony DeBone, Vice Chair f Philip G. FlInderson, Commissioner Minutes of Board of Commissioners' Work Session March 20, 2017 Page 4 of 4 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/ WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 PM, MONDAY, MARCH 20, 2017 Allen Conference Room - Deschutes Services Building, 2ND Floor — 1300 NW Wall Street — Bend Pursuant to ORS 192.640, this agenda includes a list of the principal subjects anticipated to be addressed at the meeting. This notice does not limit the ability of the Board to address additional subjects. Meetings are subject to cancellation without notice. This meeting is open to the public and interested citizens are invited to attend. Work Sessions allow the Board to discuss items in a less formal setting. Citizen comment is not allowed, although it may be permitted at the Board's discretion. If allowed, citizen comments regarding matters that are or have been the subject of a public hearing process will NOT be included in the official record of that hearing. Work Sessions are not normally video or audio recorded, but written minutes are taken for the record. CALL TO ORDER ACTION ITEMS Finance Update - Wayne Lowry, Finance Director/Treasurer 2. General Fund/Tax Analysis - Wayne Lowry, Finance Director/Treasurer 3. Consideration of Extension 4H Loan - Wayne Lowry, Finance Director/Treasurer OTHER ITEMS 4. EXECUTIVE SESSION under ORS 192.660 (2) (d) Labor Negotiations These can be any items not included on the agenda that the Commissioners wish to discuss as part of the meeting, pursuant to ORS 192.640. At any time during the meeting, an executive session could be called to address issues relating to ORS 192.660(2)(e), real property negotiations; ORS 192.660(2)(h), litigation; ORS 192.660(2)(d), labor negotiations; ORS 192.660(2)(b), personnel issues; or other executive session categories. Executive sessions are closed to the public; however, with few exceptions and under specific guidelines, are open to the media. Board of Commissioners Work Session Agenda Monday, March 20, 2017 Page 1 of 2 ADJOURN ® Deschutes County encourages persons with disabilities to participate in all programs and activities. To request this information in an alternate format please call (541) 617-4747. FUTURE MEETINGS: Additional meeting dates available at www.deschutes.org/meetingcalendar (Please note: Meeting dates and times are subject to change. All meetings take place in the Board of Commissioners' meeting rooms at 1300 NW Wall St., Bend, unless otherwise indicated. If you have questions regarding a meeting, please call 388-6572.) Board of Commissioners Work Session Agenda Monday, March 20, 2017 Page 2 of 2 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners Work Session of March 20, 2017 DATE: March 13, 2017 FROM: Wayne Lowry, Finance, 541-388-6559 TITLE OF AGENDA ITEM: Consideration of Extension 4H Loan PUBLIC HEARING ON THIS DATE?: No The OSU Extension 4H office of Deschutes County has demonstrated a need for additional space at their facility located on the Fair and Expo Center grounds. The estimated building cost is $2,000,000. The Extension 4H District has an estimated $500,000 and would like to arrange a loan from the County to fund the balance of the project. If this project were to move forward, the improvements could be completed by December 2018. The Budget committee discussed the loan request during the FY 2017 budget process and deferred the decision to the Board. This work session is an opportunity to explore the need for the facility expansion, the activities of the Extension office in Deschutes County and the various alternatives available to the Board of County Commissioners. RECOMMENDATION & ACTION REQUESTED: Give Direction to staff regarding a potential loan to fund the construction of expanded facilities. Deschutes County, Oregon Extension 4H Proposed Building Improvement Financing Analysis March 20 2017 Background OSU Extension and 4H services have been active in Deschutes County for many years. Services provided by the OSU Extension and 4H in Deschutes County are supported locally by an Extension 4H special service district established by the Board of County Commissioners in 1982 through Order #82-001. Exhibit A to the Board Order included the findings of fact justifying the public good from formation of the District. This Exhibit A is attached. On May 18, 1982, the voters approved a tax base for the newly formed special district of $75,121. Justification for the new tax base included in the election notice was,"... to prevent discontinuing extension services to the people of Deschutes County". Over time, the levy grew and apparently emerged from the implementation of measure 47/50 as a permanent rate of 2.24 cents per $1,000 of assessed value. The levy is expected to generate $485,000 in FY 2018. The County entered into an agreement (document #2015-754) in January 2016 that sets forth the agreement between the County and OSU for the provision of Extension and 4H services in Deschutes County. Extension and 4H services include educational programs delivered to the citizens of Deschutes County. The agreement is attached and includes a list of responsibilities for each party and an Exhibit A that sets forth what the County's funds may be used for in support of the OSU programs. That list includes the following: 1. Office and educational support staff as needed 2. Funding for support and space to fully house OSU programs 3. Funding to support travel and expenses of OSU faculty and staff 4. Funding for supplies, materials, publications and operation costs for OSU programs 5. Funding for equipment and capital items 6. Funding for other contingency expenditures Extension 4H FaciiitY The current Extension 4H facility was constructed on the fairgrounds property in 2003 at a cost of about $500,000. Construction was funded with $313,000 in County funds, mostly from the sale of a facility on HWY 97 known as the Welcome Center along with several grants from COIC, OSU/OSU Foundation and 4H. There are now 22 OSU staff operating Extension and 4H programs in Deschutes County. Growth of the programs in the County is the reason given for the need for additional space. Several Years ago, the Extension Regional Director, Dana Martin approached the County about expanding the Extension building. This past January, solid estimates were received on the cost of the requested expansion. The project is estimated at $2,000,000 and would construct an additional building next to the existing building at the fairgrounds and house additional offices and program space. Potential Financing The District has set aside funds each year for the past several years in a capital reserve in anticipation of a building expansion. The balance in the reserve fund at June 30, 2017 is expected to be $530,000. The Extension 4H representatives attended a budget committee meeting last year and asked the County to consider a loan to fund a portion of the project. The Budget Committee asked staff to put together a proposal and bring it back to the Board for consideration in FY 2017. It appears that should this project move forward, resources in the amount of $1,500,000 would be required. The District believes they can afford to commit up to $60,000 of their property tax revenue each year to the repayment of a loan from the County. The Districts projected operations through 2032 using current assumptions shows that $60,000 per year can be sustained as a commitment to repayment of a loan. Loan Structures • The County could loan the District $1,500,000 from its general fund to be repaid over a number of years. In order to get the annual payment under $60,000 per year, the term of the loan would have to be at least 32 years using an interest rate of 1.5%. The interest rate would be fixed and approximates the County's expected rate of return for FY 2018. Bank of the Cascades is willing to establish a loan with the District that would be guaranteed by the County. It would be at a tax exempt market rate and the annual payments over 20 years would be about $90,000 per year. This is due to the higher interest rate and the shorter term of 20 years. In addition, they will want the rate to be adjusted to market after the 10th year for the remaining term. • The County could contribute to the project with a cash contribution and then set up a loan for the balance. As an example, if the County decided to provide capital participation of $500,000, a loan could be established for the balance of $1,000,000. Over a 20 year period, the annual payment at a 1.5% interest rate would be about $58,200. The County could consider a variable interest rate loan that is equal to the County's earnings rate each month or averaged each year. This presumably would result in an increasing monthly or annual payment. Our projections show that the Extension office's capacity to make the annual payment increases over time. A variation of this could be to structure the loan to have lower payments in the early years and increasing payments as time goes on to match the Districts ability to pay. « The County could consider a capital match program where the County matches funds raised by the District in the community to lower the amount of the loan required by the project. Issues to consider: 1. Is the BOCC supportive of the project? 2. Would the BOCC be interested in a capital matching strategy that matches donations from a capital campaign with County funds up to a certain amount? 3. Would the BOCC consider contributing County funds toward the project? If so, at what level and from what source? 4. Does the BOCC want to limit the term of the loan? 5. How does the Board want to set the interest rate? Several loans in the past have either been interest free or float with the County's monthly earnings rate or even the current pool rate. Others have been fixed at the time of the loan and do not change over time. Potential Project Timing If this project were to move forward with approval given by the end of March, it is possible that the project could be completed by December 1, 2018. Final design could be completed by June 1 and construction drawings could be completed by August 15. Permits from the City of Redmond should be in hand by December 1, 2017 and the project would be bid in December 2017 with a contract awarded by February 1, 2018. Allowing 10 full months for construction, the building would be ready for occupancy on December 1, 2018. This schedule would require a loan to be in place for construction draws in February, 2018. This schedule would also require budget authority for the loan proceeds and project costs in FY 2018. Exhibit "A" FINDINGS OF FACT Deschutes County Extension and 4-H Service District 1, Deschutes County is a rural county where county extension and 4-H services provide a needed and necessary service to the residents. 2. Predominant rural land uses in the county include pasture and crop production, livestock production, natural resource utili- zation and wildlife habitats. The formation of a Deschutes County Extension and 4-H Service District provides a means for providing programs for the enhancement of these rural land uses. 3. Public facilities and services of Deschutes County would be enhanced by the establishment of a Deschutes County Extension and 4-H Service District since the provision of educational programs in rural areas may be inadequate without the type of out -reach programs available through such a district. A Deschutes County Comprehensive Plan identifies the provision of educational facilities in rural areas as an area inadequately handled by a concentration of educational facilities in more urban areas. The County Extension 4-H Service District provided means for providing rural educational and information services which might otherwise not be available in the more traditional school setting. 4. A County Extension 4-H Service District will provide information regarding forestry and agriculture to district residents which would otherwise be unavailable to the residents. The dissemi- nation of information regarding agricultural and forestry activities is necessary to preserve and increase Deschutes County Agriculture and Forestry. 5. A County Extension 4-H Service District provides urban residents with needed programs in the area of 4-H, Home Economics and Horne Horticulture as part of their primary program areas. 6. The primary program areas for rural and urban areas in Deschutes County are: (1) Agricultural production, management and natural resources development and marketing and use of these resources in its concern with the application of science and technology to the organization, operation, development and marketing of Oregon's agriculture and natural resources. (2) Family living, which includes programs in child development and human relations, food and nutrition, home management and VOL i .,nu 534 i equipment, family economics, clothing and textiles, housing and home furnishings. (3) 4-H Club and other youth programs, which provides educa- tional opportunities for youth in programs that give practical experience in projects that aid in leadership, character, citizenship and skill development as a supplement to formal school programs. b. A County Extension 4-H Service District will provide energy information to small business, builders and contractors to help conserve and better utilize resources through the conservation of energy. i rte INTERGOVERNMENTAL AGREEMENT BETWEEN OSU-EXTENSION AND DESCHUTES COUNTY THIS AGREEMENT is entered into by Oregon State University and its Extension Service, hereinafter referred to as "OSU", and the Deschutes County 4-H and Extension Service District hereinafter referred to as "District." WHEREAS, ORS Chapter 451 grants Oregon counties the ability to establish service districts to provide services within a county or counties, including Agricultural educational extension services, and designates the county court, which includes the board of county commissioners, as the governing body of the service district. ORS Chapter 451 further states that the governing body shall carry out the powers and duties of the service district under the name of the district; and WHEREAS, the citizens of Deschutes County have expressed their need, desire, and support for OSU educational programs and OSU, through its Extension Service: and WHEREAS, OSU has the capability and resources to provide the desired educational programs: and WHEREAS, District was established by an Order of the Board of County Commissioners for the County of Deschutes, Oregon on February 2, 1982, for the purpose of providing support and funding for OSU educational programs in County, now therefore, IT IS HEREBY AGREED, OSU and the District hereby enter this Agreement for the provision of the delivery of OSU educational programs to citizens of Deschutes County in consideration of the mutual promises stated herein. 1. OSU AGREES TO: 1.1 Deliver OSU educational programs and information to residents of Deschutes County. 1.2 Employ faculty and staff as designated by OSU who will deliver OSU educational programs. The number of faculty and staff employed by OSU will vary based on need and available funding. 13 Designate one OSU representative with supervisory responsibility to lead the effort to deliver OSU educational programs under this Agreement. This OSU representative may assign tasks to OSU program and office staff as deemed appropriate. Serve as OSU's primary contact for any budget and financial administration inquiries. Liaise with District regarding District budget and financial administration. 1.4 Recruit and train volunteer citizens to assist in the delivery of OSU educational programs within Deschutes County. OSUM177029 Page 1 of B Deschutes County #2015-192 CC 2015-754 1.5 Provide leadership and training on OSU's educational programs for OSU faculty, assigned staff, and volunteer citizens. 1.6 Maintain a resource base of specialized personnel and research information for use by OSU faculty and volunteer citizens In the delivery of OSU educational programs. 1.7 OSU shall not subcontract, assign or transfer any of its interest in this Agreement, without the prior written consent of District, In the event that District chooses to delegate any or all District obligations under this Agreement to Deschutes County, OSU hereby accepts and approves District's delegation of obligations to Deschutes County, The provisions of this Agreement shall be j binding upon and shall inure to the benefits of the parties hereto, and their respective successors, delegees, and assigns, if any. 1,6 OSU agrees that the funds remitted to OSU shall be used for payment of expenses related to the operations of the Extension Service described in this Agreement, 1.9 OSU agrees to provide all insurance to its employees providing services under this agreement in the same manner that it insures other similarly -situated employees. This includes, but is not limited to, worker's compensation insurance, and general liability insurance. . 2. DISTRICT AGREES TO: 21 Authorize and provide support and funding as Indicated in Attachment A and the approved District budget to carry out OSU educational programs for the duration of this Agreement. 2.2 Retain any approved funds not remitted to OSU, f=unds retained in District for OSU educational programs will be used for payment of District's Extension Service related expenses. 2.3 Designate a Budget Administrator for District operations. The Budget Administrator is responsible for the oversight of the budget and financial administration in accordance with the District's budget policies and any applicable budget laws; and serves as the primary contact for budget and financial administration inquiries for District operations. 2,31 The Budget Administrator may be a county employee, or provided both parties mutually agree, an OSU employee. 2.3.2 If the Budget Administrator is an OSU employee, the Budget Administrator will liaise with District regarding budget and financial administration. The Budget Administrator will be responsible for recommendations, not authorization, of budget and financial transactions. The Budget Administrator will not have signature authorization nor serve as the Agent of Records. DSV;;177029 Page 2 of 6 Deschutes County;1201 "92 2.4 Promptly process payment of reimbursement requests by OSU in accordance with the budget adopted by the District, Reimbursement will be based on invoices provided by OSU. Reimbursement to OSU shall be made in four equal payments during the year, The total of the reimbursement payments shall not exceed the amounts shown on the invoices or the amounts appropriated for the purpose, 2,5 Purchase property Insurance for the building(s) occupied by the District and the building contents (business personal property). 2.6 Assume full responsibility and sole fiscal obligation for retention and use of legal counsel to advise and represent the District in legal affairs. 3. LEASE AGREEMENT The parties shall enter Into a separate written lease agreement for office and storage space required by OSU. District may fund the costs associated with the lease of space as provided in Attachment A. 4. MUTUAL RESPONSIBILITIES AND UNDERSTANDINGS: 4.1 This Agreement is effective on the date it has been signed by all parties and all required approvals have been obtained, This Agreement expires on June 30, 2020. 4.2 District and OSU understand and agree that each party's respective financial responsibilities under this Agreement are contingent on receiving funding, appropriations, limitations, allotments or other expenditure authority at levels sufficient to allow that party, in the exercise of its reasonable administrative discretion, to fund this Agreement. 4.3 This Agreement may be terminated at any time pursuant to the mutual agreement of the parties, or by either party ninety (90) days after receipt of written notice. 4.4 District will have the right to audit funding provided to OSU under this Agreement. OSU agrees that its records pertaining to this Agreement shall be available for audit upon request and with reasonable advance notice. The costs of such audit. if requested, shall be bome by District. 4.5 The parties each shall be responsible, to the extent permitted by the Oregon Tort Claims Act (ORS 30.280-30.300), only for the acts, omissions or negligence of its own officers, employees or agents. 4.6 If any third party makes any claim or brings any action, suit or proceeding alleging a tort as now or hereafter defined in ORS 30.260 ("Third Party Claim") against a party (the "Notified Party") with respect to which the other party ("Other Party") may have liability, the Notified Party shall promptly notify the Other Party in writing of the Third Party Claim and deliver to the Other Party a copy of the claim, process, and all legal pleadings with respect to the Third Party Claim, OSU#177029 Deschutes County #2015392 Page 3 of 6 Each party is entitled to participate in the defense of a Third Party Claim, and to defend a Third Party Claim with counsel of its own choosing. Receipt by the Other Party of the notice and copies required in this paragraph and meaningful opportunity for the Other Party to participate in the investigation, defense, and settlement of the Third Party Claim with counsel of its own choosing are conditions precedent to the Other Party's liability with respect to the Third Party Claim. With respect to a Third Party Claim for which the parties are jointly liable, each party shall contribute to the amount of expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by the party in such proportion as is appropriate to reflect the parties' relative fault. The parties' relative fault shall be determined by reference to, among other things, the parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines, or settlement amounts, Each party's contribution amount in any instance is capped to the some extent it would have been capped under Oregon law if that party had sole liability in the proceeding. 4.7 The parties agree that discrimination on the bases of race, color, religion, sex, sexual orientation, gender Identity or expression, genetic information, national origin, age, marital status, disability, veteran's status, or any other protected class as defined in Oregon law shall not exist in any activity, employment relationship or operation carried out in the performance of this Agreement. 4.8 MERGER: THIS AGREEMENT, INCLUDING ATTACHMENTS, WHICH ARE FULLY INCORPORATED BY THIS REFERENCE, CONSTITUTES THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND REPLACES AND VOIDS ALL PREVIOUS AGREEMENTS. THERE ARE NO UNDERSTANDINGS, AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THIS AGREEMENT. NO AMENDMENT, CONSENT, OR WAIVER OF TERMS OF THIS AGREEMENT SHALL. BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY ALL PARTIES. ANY SUCH AMENDMENT, CONSENT, OR WAIVER SHALL BE SIGNED BY ALL PARTIES AND SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THE PARTIES, 13Y THE SIGNATURE BELOW OF THEIR AUTHORIZED REPRESENTATIVES, ACKNOWLEDGE HAVING READ AND UNDERSTOOD THE AGREEMENT AND THE PARTIES AGREE TO BE BOUND BY ITS TERMS AND CONDITIONS AND NEITHER PARTY SHALL BE ACCORDED ANY ADVANTAGE OVER THE OTHER BY REASON OF BEING THE DRAFTER OF ANY OF THE LANGUAGE OF THIS AGREEMENT. 0SU077029 Page 4 of 6 Deschutes County *2016-392 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY Acting as the Deschutes County 4-H and Extension Service District Governing Body OREGON STATE UNIVERSITY Tony DeBono, Chair Date ;c-nt(al Ore on Regional Administrator Alan linger, Vice Chair Date Engapment f�6-7yiny irihay" 6or6'N'--"—s—sloner Date OREGON STATE UNIVERSITY OSU#177029 Page 5 of 6 Deschutes County #2015-392 Dana Martin, Outreach & Engagement Date afe-nt(al ;c-nt(al Ore on Regional Administrator A Sc 'it d Vice Provost for 0 V dad, utreach Date Engapment Director,. 'U Extension Service k- W--La-- am Lerti(er, cppq Date Business Affairs FeM, Md, 001Ger OSU#177029 Page 5 of 6 Deschutes County #2015-392 } ATTACHMENT A f District Support and Funding Subject to the funding limitations specified in Section 2, District funds may be used for the following activities: 1. Office and educational support staff as needed, including all payroll and other compensation costs, OSU employees will be supervised and managed according to OSU policies and procedures. 2. Funding for space adequate to fully house OSU educational programs, including but not limited to, office space in a District -owned or leased facility. Such space may including utilities, internet, telephone, and any maintenance and repair, Office occupancy agreements shall be determined and obtained by the District. 3. Funding to support travel and per diem expenses for OSU faculty, office staff, and educational support staff. All travel reimbursement rates and allowances are to conform to the OSU travel reimbursement rates. 4. Funding for other services, supplies, materials, publications, and operation costs as required in support of OSU education programs. 5. Funding for equipment and other capital outlay Items which have been approved by the District's governing body. 6. Funding for other contingency expenditures, as approved by the District's governing body. 7. OSU representative, as specified in 1.3, will complete an annual OSU Extension Budget Sheet that will indicate funding allocated per this Agreement. 0St111177029 Page 6 of b Deschutes County 42015.382 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners Work Session of March 20, 2017 DATE: March 14, 2017 FROM: Wayne Lowry, Finance, 541-388-6559 TITLE OF AGENDA ITEM: General Fund/Tax Analysis PUBLIC HEARING ON THIS DATE?: No In response to the Commissioners earlier work session discussion about the general fund and the permanent tax rate, staff have prepared an analysis of general fund revenues and expenditures and have looked at the history of the County's permanent property tax rate. This session will provide Commissioners the opportunity to review and discuss this information in anticipation of the budget process for FY 2018. RECOMMENDATION & ACTION REQUESTED: N/A General Fund/Tax Analysis BOCC Worksession Agenda March 20, 2017 1. History of the general property tax permanent rate 2. Review of the budget process as it related to property taxes 3. Activities of the general fund — FY 2000 to FY 2017 o General Fund Departments o General Fund transfers — FY 2000 to FY 2017 o Non -Departmental Expenditures 4. History of fund 142 general county projects — FY 2000 to FY 2017 o Draft Future Major Maintenance Needs List 5. Projected General Capital Needs 6. Discussion and Questions Deschutes County, Oregon General Fund Historical Analysis FY 2000 to FY 2017 March 20, 2017 BOCC Work Session The General Fund for Deschutes County is typical of Counties in Oregon in that it is used as a funding source for County operations that do not have special revenues dedicated to them from other sources. 92% of the revenue recorded in the general fund is from the general property tax levy generated by the County's permanent tax rate of $1.2783/$1,000 of assessed value. Each one cent in the permanent rate produces an estimated levy amount of $218,000. On a home with an assessed value of $350,000, one cent in the tax levy represents $3.50 in taxes paid per year. Property Tax Rate History Prior to measure 47/50, the County had a tax base. A tax base was the authority to levy a dollar amount each year. The tax rate was merely a mechanism to spread the tax levy over the assessed value of property in the County. The tax base (amount levied) could increase 6% each year regardless of the change in assessed value. Under the tax base system, new construction did not produce additional tax dollars, it merely reduced the tax rate on property. Measure 50 was passed by the voters in May of 1997. Its implementation had the effect of moving the tax system from a dollar levy system to a rate levy system. Each jurisdictions tax base levy was rolled back to the 1996/97 amount, reduced by 17% and then rolled forward and converted to a permanent rate. The permanent rate was then applied to assessed value of all properties each year to arrive at the amount of taxes that can be raised. Assessed value on each property can only increase by 3% each year. New construction produces additional tax revenues to local governments due to the application of the permanent rate on new value created through improvements. Once new improvements are on the tax rolls, their assessed value only increases by 3% each year. The 3% was intended to limit the increase in the amount of tax growth each year on a taxpayers bill. As the County emerged from the implementation of measure 47/50, it was provided a permanent rate of $1.2783. The history of the permanent rate levy is shown in the table below. Perm Rate Levy FY'2000 FY 2001 FY 2002 FY 2017 General Fund 1.1669 1.2000 1.2396 1.2396 Project Fund .0387 .0387 Total 1.1669 1.2000 1.2783 1.2783 The County levied the full permanent rate of $1.2783 for FY 2002 dedicating $.0387 of the levy to the general capital projects fund and the balance of $1.2396 for operations. The purpose of the project fund was to, "accumulate resources for the general capital improvements of existing and proposed County buildings". The full County rate of $1.2783 has been levied each year since FY 2002 with $1.2396 going to general fund operations. Budget Process An integral part of the budget process each year is to approve the levy of taxes. The only variable in this process is the rate to be levied as the 3% increase in assessed value is automatic each year as long as the market value does not drop below the assessed value of each property. We typically begin the budget process with the budget as requested by departments. At this stage, revenues for the general fund are estimated using the full taxing authority of the permanent rate. Once the County Administrator formulates the proposed budget, any excess general fund resources after covering general fund proposed expenses are placed in the general capital reserve fund. Expenditures from this fund are at the discretion of the BOCC and the Budget Committee. General Fund Activities General fund resources have been used consistently since FY 2000 to fund departments in the general fund and transfers to certain departments and activities in other funds. Departments in the general fund include the DA, Assessor, Tax Collection, Veterans and the Clerk. Transfers have historically been made to Juvenile, Health, Probation, Dog Control, Victims Assistance, Fair and Expo and Justice Court. From FY 2008 through FY 2016, the general fund made a series of transfers to CDD during the downturn totaling $6,019,900. A portion of that was to cover the cost of long range planning activities. In addition, the general fund has contributed to certain capital projects. These include the purchase of the Bethlehem Inn, the Jail project, the LaPine Senior Center, the North County Facility and other general capital projects and remodels. General Capital Reserve Fund A review of the history of the general fund shows that contributions were made from the general fund to the General Capital Reserve, as far back as 2007. Between FY 2012 and FY 2015, only $166,381 was contributed to this fund. $2,055,043 was contributed in FY 2016 and $3,011,264 is expected to be contributed in FY 2017. The concept for this fund is to accumulate resources for future general capital needs such as additional court room space or additional parking to avoid the need for debt financing to fund future projects. Historical data The attached spreadsheets show general fund financial activities from FY 2000 to FY 2017. Page 1 shows the revenues, expenditures and ending fund balance for the general fund over time. Page 2 shows the details each year for non -departmental materials and services. Page 3 shows the details for transfers out of the general fund for operations, projects and reserves. Page 4 shows the revenues and expenditures for the General County Projects fund. Page 5 shows detail for the transfers out of the general county projects fund. In addition, inflation as measured by the CPI factor in County labor agreements, from December 2000 through December 2016 was 36.7% or an average of 2.16% per year. Assessed value for the County has increased 171% during this period or on average, 10.1% per year. The majority of this increase is due to new construction. Population in the County was 116,600 on July 1, 2000 compared to 176,635 on July 1, 2016. This represents an increase of 51% or an average increase of 3.2% per year. Board Goals Related to Future Major Maintenance and Capital Needs The FY 2017 adopted budget included two goals in Property and Facilities related to capital facility planning. The first was to "Complete countywide space planning study conducted by a third party contractor". The other was to "Work with Finance and Administrative Services to develop a method of funding future major maintenance and replacement of buildings". 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CM 4m(AO� URa 1-1`-1-F m Ga- LL I + I I I I I + 11 I !2 -nilN I N N N,: I I r I t r + r I 'I I coo I I 01 N O I I I I N 11 LD Ion: O C O' O Q pO cD W' O O O O I I I I I I r O p Ln In In N l0 N I I I I I I I I I I I I y N O 0 U O M O d o LL LL LL A � 'O 'O N :E -- E d a2i¢�VrnE0 � o y c N [D d a-o�v�q�+cili= �m dLm o2.0 ? o CL OEaa�a6D-Em D l0 y t�UOZin-�8 m UMNf- M01Nd tom f In 0 NIn In U]t0 fOD In tD y .0 V b V -0.0.0 CC O y C C C C C C C C C C F C.. 0 7 0 7 L 0- 3 t`oLLLLLLLLLLLLLLLLLLLL N i Community p p Development Department Planning Division Suilding Suety Division Environmental Soils Division P.G. Box 6005 117 NW Lafayette Avenue Bend Oregon 97708-6005 Phone: (541) 388-6575 Fax: (541) 335-1764 http:/,b;vm .d'eschutes.org/cd Recap of Joint Management Agreement Amendments and Title 19A City of Bend / Deschutes County Joint Management Agreement Key Provisions 1998 JMA (Current Agreement) Proposed 1. Applies only to Urban Unincorporated Area (UUA) No Yes 2. County delegates land use and building permit authority Yes Yes to City of Bend in the UUA 3. County delegates code enforcement exclusively for land Yes. Yes use and building permit cases to City of Bend in the UUA 4. Deschutes County retains authority for on-site wastewater program and any code enforcement related Yes Yes to it 5. City of Bend has exclusive jurisdiction, for all quasi-judicial development applications and Comprehensive Plan and Yes Yes map amendments 6. County has final decision making authority of legislative Yes Yes amendments in the UUA 7. Sanitary districts in the UUA shall not be formed except as Not allowed Not allowed consistent with the Bend Area General Plan (not allowed) 8. Water districts in the UUA shall not be formed except as JMA is silent Not allowed consistent with the Bend Area General Plan (not allowed) 9. County roads existing within the UUA will remain under Yes Yes county jurisdiction and maintenance until annexation 10. Any new roads or upgrades not related to maintenance or repair in the UUA associated with development will be JMA is ambiguous Yes built to City standards or require payment in -lieu 11. City of Bend has authority to charge water, sewer, and JMA is ambiguous Yes transportation SDCs in the UUA. 1 Also applies to Bend Urban Area Reserve. The Urban Area Reserve is outside of the Bend UGB and pertains, but is not limited to, Tetherow Resort, Cascade Highlands, Miller Tree Farm, Gulpher Gulch, and properties owned by Matt Day and the Coats family. 2 Prior to the City updating its Transportation SDC methodology to include properties in the UUA, the City will collect County transportation SDCs and remit the proceeds to the County. Quality Services Performed with Pride Code Amendment — Title 19 A 1. What is it? Title 19 A is an urban holding zone for lands recently brought into the City of Bend UGB, located in an urban unincorporated area, but not yet annexed. 2. Is it new? Yes. This is the first time the City of Bend has proposed an urban holding zone in Title 19. 3. Do other cities in Deschutes County have urban holding zones? Yes. The cities of Sisters and Redmond have urban holding zones for lands within their urban unincorporated area. 4. What is the purpose? The urban holding zone is intended to preserve large areas of undeveloped or rural land for future urban development prior to annexation. 5. What types of uses are allowed? Single family detached housing, accessory dwelling units, manufactured homes, home occupation, farm use, bed and breakfast inn, and accessory structures, to name a few. 6. Are their stringent development standards? Yes, specifically for minimum lot size. It is 20 acres. -2-