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2014-19-Minutes for Meeting December 02,2013 Recorded 1/2/2014 DESCHUTES COUNTY OFFICIAL RECORDS yJ 2014.19 NANCY BLANKENSHIP, COUNTY CLERK W ri COMMISSIONERS' JOURNAL 01/02/2014 10:15:12 AM IIIJIIljlulIlIlIIflhIlu �1 Do not remove this page from original document. Deschutes County Clerk Certificate Page soclk , , ,,, . c Aiiii, 2 w� 0 Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 -www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, DECEMBER 2, 2013 Present were Commissioners Alan Unger, Tammy Baney and Anthony DeBone. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; Wayne Lowry and Sherri Pinner, Finance; Ed Keith, Forester; Peter Gutowsky, Community Development; Chris Doty, Road Department; Scott Johnson, Sherri Pinner and DeAnn Carr, Health Department; media representative Elon Glucklich of The Bulletin, and two other citizens. Chair Unger opened the meeting at 1:30 p.m. 1. Consideration of Signature of Bethlehem Inn Letter of Support. Tom Anderson explained the letter acknowledges to the City and others that the County is behind the Bethlehem Inn grant process and project, and these affordable housing funds could assist the Inn to get where it needs to be, which is ownership of the property. DEBONE: Move approval of application for the two grants. BANEY: Second. VOTE: DEBONE: Yes. BANEY: Yes. UNGER: Chair votes yes. 2. Consideration of an Application for Noxious Weed Control Grant Funding. Ed Keith said that one grant would help work against orange hawkweed, which is becoming a problem in the area. Another grant is one that was proposed in the past, treating privately owned rock pits in particular, and they amount to about 130 acres. It would be for about $20,000, with an in-kind match required. Minutes of Board of Commissioners' Work Session Monday, December 2, 2013 Page 1 of 7 These are OSWB/ODA (Oregon State Weed Board and Oregon Department of Agriculture) weed grants. The applications are due now, and work would be done in the summer of 2014. DEBONE: Move approval of application for the two grants. BANEY: Second. VOTE: DEBONE: Yes. BANEY: Yes. UNGER: Chair votes yes. Funding allocations for National Forest-related Safety Net funds were discussed. Chris Doty will advise of what is coming once he knows, and it will come to the Board in the form of a Resolution soon. 3. Finance/Tax Update. Mr. Lowry said they have collected 87% of the tax levy amounts, which is better than anticipated. They release those funds to the districts a week after receipt, through November and December. He recently met with school and business officials from throughout Oregon to talk about what property taxes might be next year. Not much has changed in investments. They are almost at their limit for corporate notes, and the pool is paying better than most. The County had 45 FTE unfilled as of October 31. They projected property tax receipts this time, with most of the positive change being in the urbanized areas. Property taxes may amount to about $500,000 higher than anticipated. Because room tax is also doing well, they may not have to transfer funds from General Fund to the Sheriff's Office. Part of the Jail remodel project will require relocation of inmates, so some funds will come out of Personnel for that part of the project. Chair Unger asked about the Court security amount. Mr. Anderson said they are getting less for this fund. The County has traditionally spent more than was provided by the State for this anyway. Minutes of Board of Commissioners' Work Session Monday, December 2, 2013 Page 2 of 7 Public Health and Behavioral Health were addressed. Sherri Pinner explained that the variance for the federal grant was a correction from one fund to another. The State grant increased, but it is related to the drinking water/environmental health program. Some of the other variances are for CCO maternal child health programs. The inter-fund contract is between Health and Behavioral Health for the school- based health clinic program. This is a moving target, with things changing daily. The Behavioral Health situation is more complex. Federal grants for Drug Court were reduced. The State grant relates to the reduction of$600,000 over 18 months. The State will be cutting funds for indigent and other programs as well. Ms. Pinner went into detail about the funds and programs that are being supported, and those that may have a gap or may not be funded at all. They are not in a position to make a decision on these changes at this point. Discussion occurred about the remaining ABHA funds, which should be monitored carefully and used only when appropriate. These funds can be utilized, but once committed to a certain use, it may be difficult to reallocate. Some other programs are changing as funding is received or reduced. Some funds may be transferred from one area to another; but there may be others that are completely cut. In regard to the Children & Families' Commission, Mr. Lowry said there were questions on how those funds should be handled. Next year some of the fund will go to other programs. Ms. Pinner added that the variances are related to the Early Learning Hub. The County was not selected as a provider, but this is being appealed. If the appeal is successful, it is unclear whether these funds go to WEBCO. Fund 393 will be spent down or appropriated for personnel, and there will be a carry-over balance to be used for personnel in FY 2015. Mr. Lowry said that Community Development revenue shows the largest amount collected in the past five years, about $500,000. Projections are conservative, however, with Nick Lelack being very careful about these numbers. If volumes remain high, they may be seeing expenditure requests. Minutes of Board of Commissioners' Work Session Monday, December 2, 2013 Page 3 of 7 The Road Department fund remains about the same. Solid Waste shows they are doing well this year, but will not change projections yet due to seasonal factors. 9-1-1 has a positive variance, some of which is going into reserves. Mr. Kropp said they would be requesting additional personnel. Expenditures against the Health Benefits Trust fund are forecast to be $800,000 less this year. Mr. Anderson stated that there were some unusually high claims last year that affected budgeting. What they are seeing now is closer to what is thought to be normal claims experience. The pharmacy and clinic are helping to hold costs down as well. The Jail project shows construction dollars being spent now, but it appears to be properly funded. They are on schedule as well. 4. Investment Policy Update and Recommendations. Mr. Lowry went over the current investment policy and the proposed investment policy. Recommendations have been made by the Oregon Short Term Fund Board, which reviews governmental investment policies. The draft document was submitted to this group, and to the Advisory Committee. Commissioner Baney asked if they are changing their use of brokers. Mr. Lowry replied that this policy is based on model rules for governments. Broker selection is one of the items addressed. Usually they do not list the brokers but select four that have the correct certifications and qualifications. They would deal only with these specific brokers until there is another selection process. The list of investments is virtually the same as the previous policy; it is limited to governments. This sets up parameters regarding the amounts, terms and ratings. The old policy has an 18-month term, with the furthest out being 24 months, with a 30% limit. The new policy allows for five years. The average security is for two years. These have to be managed so they do not go out for too long. Chair Unger asked if the County could buy its own debt. Mr. Lowry said they theoretically could, if it made sense. They can buy municipal bonds in neighboring states. Minutes of Board of Commissioners' Work Session Monday, December 2, 2013 Page 4 of 7 Commissioner Baney asked if any recommendations of the Committee are not included. Mr. Lowry stated that he wanted to use AA as the rating for corporate debt, but the Investment Committee felt this was too restrictive. Statute allows an A rating, so this was changed. In regard to ratings, the bank can be rated, as can the security they are handling. Chair Unger asked about the 5% investment fee. Mr. Lowry said this is a revenue source for the Department to fund internal services. Mr. Lowry said it is time to make this change since the old policy was very restricted. There are opportunities that can now be planned on and acted upon. 5. Discussion of Medicaid Expansion Staffing and LMP Capacity. DeAnn Carr referred to a memo on this issue. They are expecting a lot more health plan clients and they need to be sure they have adequate capacity in the future. They are working with Pacific Source to get an idea of what the numbers might be, so they can appropriately staff. They are asking to add a position to the access team so people can see a representative the same day, and another position to allow for timely treatment of medical conditions. Both positions would be hired as temporary, since no one knows at this time what the total spike in membership could be. Chair Unger asked how these would be funded. Ms. Can replied that it would be based on estimates of new OHP clients. They will use some of the existing OHP funds to get to the right service level. Some of the funds were the previous ABHA reserves. Commissioner Baney said there are so many unknowns and she is concerned about bringing on more staff. She wants capacity handled, but does not want to see layoffs. Ms. Can said that this clientele are more severely affected, and require more specialized services. They expect to see more addiction components in mental health care as well. Tom Anderson said these would be of limited duration, but they still need to be ready on January 1 for whatever happens. This buys the County some time to be able to meet demand. State grant awards have been reduced, but they are taking this into account. Minutes of Board of Commissioners' Work Session Monday, December 2, 2013 Page 5 of 7 BANEY: Move approval of the requests for staffing. DEBONE: Second. VOTE: BANEY: Yes. DEBONE: Yes. UNGER: Chair votes yes. 6. Discussion of Oregon Spotted Frog Written Comments. Chris Doty referred to a memo regarding this issue, documenting the extent of the impact to habitat. (He referred to oversized maps of the areas.) Ultimately, if listed as threatened, there will be an opportunity to deal with this issue through an operational manual under best management practices. He feels this will provide the County with liability protection. The document that most governmental entities adopt or follow is the ODOT manual, refined to work for the specific entity and location. BANEY: Move approval of the letter. DEBONE: Second. VOTE: BANEY: Yes. DEBONE: Yes. UNGER: Chair votes yes. 7. Other Items. Mr. Anderson said DEQ will be meeting on Wednesday night, December 4, regarding Goal 11 and related groundwater protection issues, in La Pine. The Commissioners can attend but would not be part of the program. Commissioner DeBone said the Advisory Committee made recommendations, and this is DEQ's chance to show that they understand the issue, and how they will move forward. Nick Lelack will be there, but there is a scheduling conflict with the spotted frog discussion in the same area. Peter Gutowsky will be at the spotted frog meeting. The spotted frog discussion is also being held in Sunriver on a different night this week, so it is possible to attend both types of meetings. Minutes of Board of Commissioners' Work Session Monday, December 2, 2013 Page 6 of 7 Mr. Anderson said there is a coordinating meeting on Thursday regarding Oregon Cascades University's plans for the west side, and how the demolition landfill might fit into this. In regard to the Johnson Measure 47 case, Hearings Officer Karen Green has issued a decision and granted vested rights for all four projects. There was no stated opposition, but the Board can dispute this decision if desired. This should not affect any other claims since they accepted the findings at the time. The Commissioners do not feel it necessary to call this up for review. Mr. Kropp shared photos of Bear Creek Elementary School upon receipt of a Healthier USA award. The Commissioners were not able to attend since they were attending the AOC conference, so he was present at the event. Being no further items discussed, the meeting adjourned at 3:10 p.m. DATED this I I Day of 4`e- 2013 for the Deschutes County Board of Commissioners. Alan Unger, Chair Tammy aney, Vi Chair ATTEST: gjt/ (porintAAL Anthony DeBone, Commissioner Recording Secretary Minutes of Board of Commissioners' Work Session Monday, December 2, 2013 Page 7 of 7 6`.,, AIN Deschutes County Board of Commissioners ,, .. 1300 NW Wall St, Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 P.M., MONDAY, DECEMBER 2, 2013 1. Consideration of Bethlehem Inn Letter of Support—Susan Ross 2. Consideration of an Application for Noxious Weed Control Grant Funding—Ed Keith 3. Finance/Tax Update — Wayne Lowry 4. Investment Policy Update and Recommendations — Wayne Lowry 5. Discussion of Medicaid Expansion Staffing and LMP Capacity—DeAnn Carr 6. Discussion of Oregon Spotted Frog Written Comments —Peter Gutowsky, Chris Doty 7. Other Items PLEASE NOTE:At any time during this meeting,an executive session could be called to address issues relating to ORS 192.660(2)(c),real property negotiations;ORS 192.660(2)(h),litigation;ORS I 92.660(2)(d),labor negotiations;or ORS 192.660(2)(b),personnel issues;or other issues under ORS 192.660(2),executive session. Meeting dates,times and discussion items are subject to change. All meetings are conducted 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. Deschutes County encourages persons with disabilities to participate in all programs and activities. This event/location is accessible to people with disabilities. If you need accommodations to make participation possible,please call(541)388-6571,or send an c-mail to honnie.baker(ii2deschutes.org. .,�JT E S 0O p 1 Board of Count Commissioners P.O. Box 6005 •Bend, OR 97708-6005 1300 NW Wall St, Suite 206 •Bend, OR 97701-1960 (541) 388-6570 • Fax (541) 385-3202 www co.deschutes.or.us board @ co.deschutes.or.us December 2, 2013 Tammy Raney Anthony DeBone Alan Unger Bend Affordable Housing Committee c/o Jim Long City of Bend Bend, Oregon 97709 RE: BETHLEHEM INN APPLICATION FOR FUNDING Dear Committee Members, Deschutes County submits this letter in support of the Bethlehem Inn application for funding through the Affordable Housing program. Deschutes County and Bethlehem Inn have been in ongoing discussions regarding the sale/purchase of the property located at 3705 N. Highway 97. We anticipate having these terms worked out by the end of December 2013. It is the intention of Deschutes County to eventually enter into a purchase and sale agreement with Bethlehem Inn. It is important that the Inn has ownership of the property in order to facilitate future improvements. It is difficult for an organization to invest construction/remodel dollars into a facility that they do not own. Bethlehem Inn has a clear priority of serving the people in our community who are in crisis. Deschutes County is proud of the long-standing relationship that we have with the shelter as it has developed to be an important nonprofit and presence here in Bend. Thanks to the work of a dedicated staff, they play a significant role in the social service delivery network in the region. Bethlehem Inn is currently a Community Partner of Deschutes County and receives annual financial support. Additionally, a County Behavioral Health Specialist has on-site hours at the shelter each week to work directly with the clients. Enhancing the Lives of Citizens by Delivering Quality Services in a Cost-Effective Manner DC - 2013- 657 Deschutes County and the Bethlehem Inn will continue to work together with the long-term goal for the Inn to provide help and hope to County residents who are in crisis and achieve the goal of eliminating homelessness in Deschutes County. Thank you for your consideration of this important funding request. Please contact any of us if you have any questions. Sincerely, DESCHUTES COUNTY BOARD OF COMMISSIONERS Alan Unger, Chair Tammy Baney, Vice Chair Anthony DeBone, Commissioner OSWB/ODA Weed Grants 2014—request to BOCC for approval to apply ODA funds grants for high priority weeds on an annual basis. Last year ODA funded a $12,000 grant to treat orange hawkweed. For the upcoming year grant applications are due December 12, 2013. I would like to request approval to apply for two grants. These would both be for work in the summer of 2014. Rock pit weed treatment. Most noxious weeds are spread through transportation systems or waterways. This grant will prevent noxious weed seeds from being spread to private and public roads and other construction sites within Deschutes County. Funding would include: • Administration of the grant • Treating rock pits with known infestations of noxious weeds • Surveying, Mapping, and Monitoring success noxious weed control • Education and outreach to owners and operators of private rock pits • State Weed Board funding would be approximately$20,000. • A minimum of 25% match is required in order for projects to be eligible for funding. We are seeking in kind match from the USFS, ODA, and Deschutes SWCD in addition to match from the County in the form of office space, transportation, and educational materials all of which are or will be budgeted for. Orange Hawkweed. This is an A rated weed both in the county and statewide. This grant will build on past efforts to eradicate and contain hawkweed. Most known sites are currently within the city of Bend but a few sites have been found of Forest Service managed property and the threat is high that spread will continue without a concerted effort to try and contain it. Funding would include: • Administration of the grant • Providing technical assistance and weed treatment to property owners with hawkweed. • Surveying, Mapping, and Monitoring success noxious weed control • Education and outreach to owners and operators of private rock pits • State Weed Board funding would be $10,000 • A minimum of 25% match is required in order for projects to be eligible for funding. We are seeking in kind match from the USFS, ODA, and Deschutes SWCD in addition to match from the County in the form of office space, transportation, and educational materials all of which are or will be budgeted for. 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Ig ¢10 Z m x �1a i� Min �ii�..c� LL' s a co m c E c O E E 1 1 : UD5DO_ r0v,I-3x50 ,c7D,5LLLLu_ J m, 1 • r w , Memorandum Date: November 19, 2013 To: Board of County Commissioners Tom Anderson, County Administrator From: Wayne Lowry, Finance Director RE: Monthly Financial Reports Attached please find October 2013 financial reports for the following funds: General (001), Community Justice — Juvenile (230), Sheriff's (255, 701 , 702), Public Health (259), Behavioral Health (275), Community Development (295), Road (325), Community Justice — Adult (355), Commission on Children & Families (370- 399), Solid Waste (610), Insurance Fund (670), 9-1-1 (705), Health Benefits Trust (675), Fair & Expo Center (618), and Justice Court (123). The projected information has been reviewed and updated, where appropriate, by the respective departments. Cc: All Department Heads GENERAL FUND Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date(33% of Year) FY 2014 %of Actual Actual Budget Budget Projection 1 $Variance Revenues Property Taxes-Current 20,734,019 2,505,162 12% a) 21,031,062 21,531,062 500,000 Property Taxes-Prior 1,108,377 373,994 52% 720,000 720,000 - Other General Revenues 2,683,531 1,305,322 67% b) 1,955,900 1,955,900 - Assessor 866,121 474,744 58% c) 812,421 902,421 90,000 County Clerk 1,710,900 494,181 35% c) 1,415,487 1,415,487 - BOPTA 16,419 9,602 63% c) 15,200 17,200 2,000 District Attorney 174,794 27,193 15% 184,194 184,194 - Tax Office 252,869 147,825 71% c) 208,750 226,750 18,000 Veterans 74,348 28,053 40% 70,920 70,920 - Property Management 100,249 30,333 33% 91,000 91,000 - Grant Projects 2,000 667 33% 2,000 2,000 - Total Revenues 27,723,627 5,397,074 20% 26,506,934 27,116,934 610,000 Expenditures Assessor 3,439,127 1,162,104 32% 3,687,131 3,687,131 - County Clerk 1,299,189 439,239 29% 1,500,045 1,500,045 - BOPTA 58,401 21,380 28% 76,901 76,901 - District Attorney 5,034,333 1,715,516 30% 5,638,777 5,638,777 - Finance/Tax 779,725 277,420 33% 846,733 846,733 - Veterans 250,880 94,112 31% 299,163 299,163 - Property Management 275,329 84,520 33% 258,807 258,807 - Grant Projects 122,139 42,016 32% 129,951 129,951 - Non-Departmental 1,221,749 279,760 20% d) 1,392,993 1,017,290 375,703 Total Expenditures 12,480,872 4,116,067 30% 13,830,501 13,454,798 375,703 Transfers Out 13,930,307 5,053,572 37% 13,615,578 13,615,578 -- Total Exp&Transfers r 26,411,179 9,169,639 33% 27,446,079 27,070,376 375,703 Change in Fund Balance 1,312,448 (3,772,564) (939,145) 46,558 985,703 Beginning Fund Balance 9,059,394 10,371,843 _ 109% 9,500,000 10,371,843 871,843 Ending Fund Balance $ 10,371,843 $ 6,599,278 * $8,560,855 $10,418,401 $1,857,546 * FY 2014 Contingency-$8,560,855 a) Current year taxes due November, February and May b) PILT received in July-$500,941 c) A&T grant- 1st&2nd Quarter payments have been received and are trending in excess of budget d) Room Tax receipts are projected to be sufficient for the$2,650,000 payment to LED#2; the$375,703 appropriated in the General Fund will not be expended. Page 1 COMM JUSTICE-JUVENILE Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date(33%of Year) FY 2014 %of Actual Actual Budget Budget Projection I $Variance Revenues Federal Grants - 7,090 167% a) 4,254 11,715 7,461 SB#1065-Court Assess. 8,606 2,465 41% 6,000 6,000 - Jail Funding HB#2712 101,659 9,142 25% 36,568 36,568 - Discovery Fee 8,703 1,870 23% 8,300 8,300 - Food Subsidy 24,650 7,226 30% 24,000 24,000 - OVA Basic&Diversion 354,583 - 0% b) 364,268 359,149 (5,119) Inmate/Prisoner Housing 113,760 13,800 11% c) 125,000 125,000 - Contract Payments 90,765 227 0% d) 120,000 5,000 (115,000) Interest on Investments 6,343 2,335 39% 6,000 6,000 - Leases 1,200 400 33% 1,200 1,200 - Grants-Private 1,729 301 24% 1,250 1,250 - CFC Interfund Grant 120,595 - n/a e) - 128,041 128,041 Interfund Grant-Gen Fund 20,000 5,000 25% 20,000 20,000 - Miscellaneous 790 104 16% 650 650 - Total Revenues 853,383 49,959 7% 717,490 732,873 15,383 Expenditures Personnel Services 4,878,315 1,599,754 31% 5,109,496 5,109,496 - Materials and Services 1,086,677 300,896 28% d) 1,085,433 970,433 115,000 Capital Outlay - - 0% 100 - 100 Transfers Out 50,400 915 25% 3,660 3,660 - Total Expenditures 6,015,391 1,901,565 31% 6,198,689 6,083,589 115,100 Revenues less Expenditures (5,162,008) (1,851,605) (5,481,199) (5,350,716) 130,483 Transfers In-General Fund 5,344,523 1,789,448 33% 5,368,346 5,368,346 - Change in Fund Balance 182,515 (62,157) (112,853) 17,630 130,483 Beginning Fund Balance 995,051 1,177,566 105% 1,125,000 1,177,566 52,566 Ending Fund Balance $ 1,177,566 $ 1,115,408 * $1,012,147 $1,195,196 $ 183,049 *FY 2014 Contingency-$ 1,012,147 a) Includes$7,090 payment on a FY 2013 grant b)State informed County of the FY 2014 amount subsequent to preparation of FY 2014 budget. First quarter payment, $75,715, will be received in November. c)$2,700 billing outstanding d) BRS/Maplestar program discontinued. Projected revenues and expenditures reduced accordingly. e) Interfund grant reinstated (was previously eliminated). Funding supports expenditures for JCP programs included in the budget. Page 2 SHERIFF-Consolidated Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date(33%of Year) FY 2014 Actual Actual I Budget Budget I Projection Ls Variance Revenues (Funds 701 &702) Law Enf Dist Countywide 19,512,075 3,567,987 19% 19,116,763 19,536,988 420,225 Law Enf Dist Rural 12,228,468 2,202,304 18% 12,125,008 12,129,616 4,608 Total Revenues 31,740,543 5,770,291 18% 31,241,771 31,666,604 424,833 Expenditures(Fund 255) Sheriffs Services 2,263,061 823,173 34% 2,401,838 2,401,738 100 Civil/Special Units 723,704 359,741 32% 1,110,175 1,110,175 - Automotive/Communications 1,837,849 660,257 40% a) 1,643,912 1,643,912 - Investigations/Evidence 1,425,223 493,092 33% 1,472,678 1,472,578 100 Patrol 8,174,690 2,671,936 31% 8,544,952 8,544,952 - Records 685,178 238,244 31% 774,452 774,352 100 Adult Jail 12,850,417 4,459,892 31% b) 14,384,459 14,384,459 Court Security 298,060 95,773 35% 275,852 275,752 100 Emergency Services 185,439 78,400 35% 223,273 223,173 100 Special Services 1,236,781 482,734 32% 1,498,298 1,498,298 - Training 481,717 147,799 28% 527,979 527,879 100 Other Law Enforcement Svcs 667,913 281,056 36% 779,623 779,523 100 Non-Departmental 85,253 27,234 33% 81,701 81,701 - Total Expenditures 30,915,283 10,819,331 32% 33,719,192 33,718,492 700 Revenues less Expenditures 825,260 (5,049,040) * (2,477,421) (2,051,888) 425,533 DC Comm Syst Reserve 200,000 - 200,000 200,000 - Transfer to Reserve Funds 200,000 - 200,000 200,000 - Change in Fund Balance 425,260 (5,049,040) (2,877,421) (2,451,888) 425,533 Beginning Fund Balance 9,128,533 9,553,793 8,161,912 9,553,793 1,391,881 Ending Fund Balance $9,553,793 $4,504,753 $5,284,491 $7,101,905 $1,817,414 *FY 2014 Contingency-$ 5,284,491 a) FY 2014 appropriated amount, $291,747 for payment Deschutes County Communication System Fund, expended in July 2013 b)Projected savings of$100,000 in Personnel expenses from open unfilled positions will be used to offset the cost of renting additional jail beds from Jefferson County due to Jail renovation and inmate relocation Page 3-A SHERIFF-Fund 255 Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date (33% of Year) FY 2014 Actual Actual I Budget Budget I Projection T $Variance Revenues (Fund 255) Law Enf Dist Countywide 18,708,928 6,736,976 28% 24,478,462 21,161,510 (3,316,952) Law Enf Dist Rural 12,206,355 4,082,355 28% 14,525,221 12,556,982 (1,968,239) Total Revenues 30,915,283 10,819,331 28% 39,003,683 33,718,492 (5,285,191) Expenditures(Fund 255) Sheriffs Services 2,263,061 823,173 34% 2,401,838 2,401,738 100 Civil/Special Units 723,704 359,741 32% 1,110,175 1,110,175 - Automotive/Communications 1,837,849 660,257 40% a) 1,643,912 1,643,912 - Investigations/Evidence 1,425,223 493,092 33% 1,472,678 1,472,578 100 Patrol 8,174,690 2,671,936 31% 8,544,952 8,544,952 - Records 685,178 238,244 31% 774,452 774,352 100 Adult Jail 12,850,417 4,459,892 31% b) 14,384,459 14,384,459 - Court Security 298,060 95,773 35% 275,852 275,752 100 Emergency Services 185,439 78,400 35% 223,273 223,173 100 Special Services 1,236,781 482,734 32% 1,498,298 1,498,298 - Training 481,717 147,799 28% 527,979 527,879 100 Other Law Enforcement Svcs 667,913 281,056 36% 779,623 779,523 100 Non-Departmental 85,253 27,234 33% 81,701 81,701 - Total Expenditures 30,915,283 10,819,331 32% 33,719,192 33,718,492 700 Revenues less Expenditures $ - - * $5,284,491 $ - $(5,284,491) * FY 2014 Contingency-$ 5,284,491 a) FY 2014 appropriated amount, $291,747 for payment Deschutes County Communication System Fund expended in July 2013 b) Projected savings of$100,000 in Personnel expenses from open unfilled positions will be used to offset the cost of renting additional jail beds from Jefferson County due to Jail renovation and inmate relocation Page 3-B SHERIFF-Expenditure Detail Statement of Financial Operating Data , Through October 31,2013 FY2014-Year to FY 2013 Date(33%of Year) FY 2014 Actual Actual (9udget Budget I Projection I $Variance Expenditures Sheriffs Services Personnel 1,311,042 467,147 33% 1,411,820 1,411,820 - Materials&Services 952,019 356,025 36% 989,918 989,916 - Capital Outlay - 0% 100 - 100 Total Sheriff's Services 2,263,061 823,173 34% 2,401,838 2,401,738 100 Civil/Special Units Personnel 637,830 338,200 34% 1,009,306 1,009,306 - Materials&Services 85,874 21,542 22% 95,769 95,769 - Capital Outlay - 0% 5,100 5,100 - Total Civil/Special Units 723,704 359,741 32% 1,110,175 1,110,175 - Automotive/Communications Personnel 413,153 125,620 31% 404,407 404,407 - Materials&Services 1,406,033 528,846 44% 1,202,505 1,202,505 Capital Outlay 18,663 5,790 16% 37,000 37,000 Total Automotive/Communications 1,837,849 660,257 40% 1,643,912 1,643,912 - Investigations/Evidence Personnel 1,283,221 436,113 33% 1,338,593 1,338,593 - Materials&Services 142,001 56,979 43% 133,985 133,985 - Capital Outlay - 0% 100 - 100 Totallnvestigations/Evidence 1,425,223 493,092 33% 1,472,678 1,472,578 100 Patrol Personnel 7,325,801 2,468,920 32% 7,723,459 7,723,459 - Materials&Services 613,033 193,046 34% 563,921 563,921 Capital Outlay 235,856 9,970 4% 257,572 257,572 - Total Patrol 8,174,690 2,671,936 31% 8,544,952 8,544,952 - Records Personnel 583,461 224,392 34% 665,327 665,327 - Materials&Services 101,717 13,852 13% 109,025 109,025 - Capital Outlay - 0% 100 - 100 Total Records 685,178 238,244 31% 774,452 774,352 100 Adult Jail Personnel 10,934,201 3,849,271 32% 12,060,079 11,960,079 100,000 Materials&Services 1,879,643 581,686 30% 1,947,790 2,047,790 (100,000) Capital Outlay 36,573 28,935 38% 76,590 76,590 - Transfer Out-Jail Debt Service - 0% 300,000 300,000 - Total Adult Jail 12,850,417 4,459,892 31% 14,384,459 14,384,459 - Court Security Personnel 285,997 90,682 34% 265,966 265,966 - Materials&Services 12,063 5,091 52% 9,786 9,786 - Capital Outlay - 0% 100 - 100 Total Court Security 298,060 95,773 35% 275,852 275,752 100 Emergency Services Personnel 175,729 70,962 36% 196,825 196,825 - Materials&Services 9,710 7,438 28% 26,348 26,348 - Capital Outlay - 0% 100 - 100 Total Emergency Services 185,439 78,400 35% 223,273 223,173 100 Special Services Personnel 1,024,967 433,190 35% 1,251,196 1,251,196 - Materials&Services 175,717 49,543 23% 211,502 211,502 - Capital Outlay 36,096 - 0% 35,600 35,600 - Total Special Services 1,236,781 482,734 32% 1,498,298 1,498,298 - Traininq Personnel 345,417 114,809 30% 384,725 384,725 - Materials&Services 136,300 32,990 23% 143,154 143,154 - Capital Outlay - 0% 100 - 100 Total Training 481,717 147,799 28% 527,979 527,879 100 Other Law Enforcement Services Personnel 607,877 250,381 35% 705,392 705,392 - Materials&Services 60,035 30,675 41% 74,131 74,131 - Capital Outlay - 0% 100 - 100 Total Other Law Enforcement Svcs 667,913 281,056 36% 779,623 779,523 100 Non-Departmental Materials&Services 85,253 27,234 33% 81,701 81,701 - Total Non-Departmental 85,253 27,234 33% 81,701 81,701 - Total Expenditures $ 30,915,283 $10,819,331 32% $33,719,192 $33,718,492 $ 700 Page 4 SHERIFF 701 Statement of Financial Operating Data Through October 31, 2013 FY 2014 -Year to Date FY 2013 (33%of Year) FY 2014 Actual Actual I Budget Budget I Projection ( $Variance Revenues Tax Revenues-Current 15,812,544 2,032,288 13% a) 16,103,377 16,378,377 275,000 Tax Revenues -Prior 817,322 274,788 54% 507,902 507,902 - Federal Grants 24,510 - 0% b) 25,500 12,649 (12,851) State Grant 158,199 22,946 20% 115,524 115,524 - Jail Funding HB 2712 101,659 9,142 20% 46,143 46,143 - Jail Funding HB 3194 - 107,806 n/a c) - 107,806 107,806 Transp. of State Wards 3,289 1,215 24% 5,000 5,000 - SB 1145 1,479,991 816,315 52% d) 1,584,991 1,628,947 43,956 Prisoner Housing 284,189 49,638 62% e) 80,000 140,000 60,000 Des. Cty Gen Fund Grant - - 0% 4,762 4,762 - Des. Cty Video Lottery Grant 5,000 5,000 100% 5,000 5,000 - Grants 20,640 - n/a - - - Des Cty Court Security 116,646 - 0% f) 99,318 45,632 (53,686) Des Cty Juvenile Contract 12,051 3,962 40% 10,000 10,000 - Title III Reimbursement 39,916 - n/a - - - Inmate Commissary Fees 29,756 7,953 53% 15,000 15,000 - Work Center Work Crews 53,237 31,671 63% 50,000 50,000 - Concealed Handgun Classes 8,050 550 16% 3,500 3,500 - Inmate Telephone Fee 97,403 21,599 27% 80,000 80,000 - Soc Sec Incentive-Fed 14,600 4,200 84% 5,000 5,000 - Medical Services Reimb 20,461 2,970 23% 13,000 13,000 - Sheriff Fees 314,668 121,597 49% 250,000 250,000 - Interest 44,629 8,162 26% 32,000 32,000 - Donations"Shop with a Cop" 31,717 37,218 72% 51,897 51,897 - Miscellaneous 21,599 8,968 31% 28,849 28,849 - Total Operating Revenues 19,512,075 3,567,987 19% 19,116,763 19,536,988 420,225 EXPENDITURES &TRANSFERS DC Sheriffs Office 18,708,928 6,736,976 28% * 24,478,462 21,161,510 3,316,952 DC Comm Systems Reserve 80,000 - 0% 80,000 80,000 - Transfer to Reserve Fund 100,000 - 0% 100,000 100,000 - Total Expenditures 18,888,928 6,736,976 27% 24,658,462 21,341,510 3,316,952 Change in Fund Balance 623,147 (3,168,989) (5,541,699) (1,804,522) 3,737,177 Beginning Fund Balance 5,883,963 6,507,110 5,541,699 6,507,110 965,411 Ending Fund Balance $ 6,507,110 $ 3,338,121 $ - $4,702,588 $4,702,588 *Payment to Sheriffs Fund adjusted monthly to equal actual expenditures attributable to countywide services a)Current year taxes due November, February and May b)Bureau of Justice SCAPP funding will be less than planned due to qualifying inmate population c) Unanticipated HB 3194 funding for the Adult Jail d) 1145 inmate reimbursement will exceed budget amount for the year e)Based on Quarter 1 actual, DOC reimbursement for SB395(repeat DUII) inmates will exceed plan for the year f)State OJD distributions will be less than planned for the year Page 5 SHERIFF 702 , Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to Date FY 2013 (33%of Year) FY 2014 Actual Actual Budget Budget Projection I $Variance Revenues Tax Revenues-Current 7,698,340 972,275 12% a) 7,839,932 7,839,932 - Tax Revenues-Prior 404,894 135,049 51% 263,858 263,858 - Federal Grants 53,818 11,583 80% 14,500 14,500 - Federal Grants-BLM 20,881 - 0% b) 25,000 25,000 - US Forest Service 78,750 19,688 26% 76,500 76,500 - Bureau of Reclamation 40,580 - 0% b) 26,000 26,000 - State Grant 274,465 10,392 6% 169,000 169,000 - SB#1065 Court Assessment 8,606 2,465 4% 55,000 55,000 - Marine Board License Fee 143,724 - 0% b) 150,000 150,000 - IDes Cty General Fund Grant 136,735 - 0% c) 375,703 - (375,703) Des Cty Transient Room Tax 2,513,265 758,099 33% e) 2,274,297 2,650,000 375,703 Asset Forfeiture 11,760 - n/a - - - City of Sisters 468,060 162,226 33% 486,678 486,678 - Des Cty CDD Contract 54,366 19,757 33% 59,270 59,270 - Des Cty Solid Waste Contr 54,366 19,757 33% 59,270 59,270 - School Districts 46,212 - 0% b) 40,000 40,000 - Claims Reimbursement 860 108 n/a - 108 108 Seat Belt Program 5,390 2,590 26% 10,000 10,000 - Sheriff Fees 9,617 3,516 35% 10,000 10,000 - Court Fines &Fees 120,247 44,564 36% 125,000 125,000 - Interest 20,654 3,239 27% 12,000 12,000 - Grants-Private 6,500 - n/a - - - Donations 11,650 4,500 n/a - 4,500 4,500 Miscellaneous 44,728 32,497 61% 53,000 53,000 - Total Revenues 12,228,468 2,202,304 18% 12,125,008 12,129,616 4,608 EXPENDITURES &TRANSFERS DC Sheriff's Office 12,206,355 4,082,355 28% * 14,525,221 12,556,982 1,968,239 DC Comm Systems Reserve 120,000 - 0% 120,000 120,000 - Transfer to Reserve Fund 100,000 - 0% 100,000 100,000 - Total Expenditures 12,426,355 4,082,355 28% 14,745,221 12,776,982 1,968,239 Change in Fund Balance (197,887) (1,880,052) (2,620,213) (647,366) 1,972,847 Beginning Fund Balance 3,244,571 3,046,683 2,620,213 3,046,683 426,470 Ending Fund Balance $ 3,046,683 $1,166,632 $ - $2,399,317 $2,399,317 *Payment to Sheriffs Fund adjusted monthly to equal actual expenditures attributable to countywide services a) Current year taxes due November, February and May b) Invoiced quarterly. First quarter payment will be received in 2nd Quarter. c) Room Tax receipts are projected to be sufficient for the$2,650,000 payment to LED#2. Page 6 PUBLIC HEALTH Statement of Financial Operating Data , Through October 31,2013 FY 2014-Year to FY 2013 Date(33% of Year) FY 2014 Sof Actual Actual Budget Budget _ Projection J $Variance Revenues Medicare Reimbursement 68 - n/a - - - Federal Grant 630 8,370 209% 4,000 86,085 82,085 Federal Grant(ARRA) 212,500 - 0% 85,000 85,000 - State Grant 2,700,025 894,951 34% a) 2,655,897 2,754,434 98,537 Child Dev&Rehab Center 38,154 2,435 6% b) 39,609 39,609 - State Miscellaneous 248,176 7,806 5% b) 163,310 83,110 (80,200) OMAP 578,042 220,092 36% 612,400 747,400 135,000 Family Planning Exp Proj 519,121 148,873 27% 550,000 550,000 - Grants(Intergovern&Pvt) 40,214 - 0% 164,923 164,923 - Environmental Health-Water 95,224 - 0% c) 94,200 - (94,200) Contract Payments 174,624 6,391 4% b) 151,316 141,266 (10,050) Patient Insurance Fees 214,544 83,984 46% 184,200 184,200 - Health Dept/Patient Fees 95,108 37,179 31% 119,400 119,400 - Vital Records-Birth 32,475 12,155 30% 41,000 41,000 - Vital Records-Death 112,235 28,605 29% 100,000 100,000 - Environmental Health-Lic Fac 755,693 56,754 8% d) 753,750 753,750 - Interest on Investments 6,262 2,085 35% 6,000 6,000 - Donations 19,366 43,955 2442% 1,800 43,955 42,155 Interfund Contract 162,757 26,296 15% b)e) 180,426 91,691 (88,735) Miscellaneous 3,425 1,924 137% 1,400 1,924 524 Total Revenues 6,008,643 1,581,855 27% 5,908,631 5,993,747 85,116 Expenditures Personnel Services 6,344,766 2,106,713 32% 6,665,719 6,665,719 - Materials and Services 2,036,535 559,223 27% 2,070,058 2,070,058 - Capital Outlay - - 0% 100 - 100 Transfers Out 157,200 39,330 25% 157,320 157,320 - Total Expenditures 8,538,501 2,705,266 30% 8,893,197 8,893,097 100 Revenues less Expenditures (2,529,858) (1,123,410) (2,984,566) (2,899,350) 85,216 Transfers In-General Fund 2,349,357 900,492 33% 2,701,475 2,701,475 - Transfers In-PH Res Fund 62,136 8,250 25% 33,000 33,000 - Transfers In-Gen. Fund Other _ 65,100 16,275 25% 65,100 65,100 - Total Transfers In 2,476,593 925,017 33% 2,799,575 2,799,575 - Change in Fund Balance (53,265) (198,393) (184,991) (99,775) 85,216 Beginning Fund Balance 1,327,199 1,273,934 92% 1,385,592 1,273,934 (111,658) Ending Fund Balance $ 1,273,934 $ 1,075,540 * $1,200,601 $ 1,174,159 $ (26,442) *FY 2014 Contingency-$ 1,200,601 a)Oregon Health Authority grant projected at amended contract amount b)Received quarterly in arrears c)Funding received from Oregon Health Authority d)Majority of fees are due annually and collected in December and January e) Interfund contract reduced due to elimination of FTE. Page 7 BEHAVIORAL HEALTH • Statement of Financial Operating Data Through October 31, 2013 FY2014-Year to FY 2013 Date(33%of Year) FY 2014 %of Actual Actual Budget Budget Projection I $Variance Revenues Marriage Licenses 5,650 3,045 47% 6,500 6,500 - Divorce Filing Fees 122,971 42,826 30% 140,600 140,600 - Federal Grants 252,331 36,617 15% a) 252,349 204,849 (47,500) Federal Grant(ARRA) 63,750 63,750 250% 25,500 63,750 38,250 State Grants 7,552,648 2,503,291 31% b) 8,061,713 7,309,892 (751,821) State Miscellaneous 62,361 10,310 17% 61,860 20,620 (41,240) Adult Mental Health Initiative 229,038 114,086 50% 230,000 230,000 - Title 19 121,876 67,697 47% 144,246 144,246 - Liquor Revenue 144,595 25,486 19% 137,000 137,000 - School Districts 23,317 - n/a - - - Patient Fees 110,491 71,900 45% 158,082 158,082 - Interest on Investments 19,900 6,133 30% 20,500 20,500 - Rentals 16,625 7,750 42% 18,500 18,500 - Administrative Fee 5,224,877 2,732,881 33% 8,318,643 8,318,643 - Interfund Contract-Gen Fund 127,000 - 0% c) 127,000 127,000 - Miscellaneous 17,482 17,593 17593% 100 20,000 19,900 Total Revenues 14,094,911 5,703,364 34% 17,702,593 16,920,182 (782,411) Expenditures Personnel Services 10,916,057 3,978,674 30% 13,171,075 13,171,075 - Materials and Services 5,970,799 1,677,230 24% d) 6,896,820 6,440,434 456,386 Capital Outlay 26,965 - 0% 10,000 10,000 - Transfers Out 204,000 51,225 25% 204,900 204,900 - Total Expenditures 17,117,821 5,707,129 28% 20,282,795 19,826,409 456,386 Revenues less Expenditures (3,022,909) (3,765) (2,580,202) (2,906,227) (326,025) Transfers In-General Fund 1,307,787 459,100 33% 1,377,302 1,377,302 - Transfers In-OHP-CDO 484,494 - n/a - - - Transfers In-Acute Care Svcs 264,631 97,864 33% 293,593 293,593 - Transfers In-ABHA 524,039 - n/a - - - Total Transfers In 2,580,951 556,964 33% 1,670,895 1,670,895 - Change in Fund Balance (441,958) 553,199 (909,307) (1,235,332) (326,025) Beginning Fund Balance 3,113,095 2,671,137 77% 3,461,651 2,671,137 (790,514) Ending Fund Balance $2,671,137 $3,224,336 * $2,552,344 $1,435,805 $(1,116,539) FY 2014 Contingency-$ 2,552,344 a) Federal grant projected at amended contract amount b)Oregon Health Authority grant project at amended contract amount c) Received quarterly in arrears. Q1 will be received in November. d) M&S reduction related to Oregon Health Authority amended contract Page 8 COMMUNITY DEVELOPMENT Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date(33%of Year) FY 2014 %of Actual Actual Budget Budget Projection I $Variance Revenues Admin-Operations 31,848 15,333 27% 56,243 23,000 (33,243) Admin-GIS 778 498 33% a) 1,500 3,500 2,000 Admin-Code Enforcement 239,264 100,268 56% 178,000 243,860 65,860 Building Safety 1,563,938 700,944 56% 1,247,359 1,700,882 453,523 Electrical 336,210 158,019 56% 283,073 370,446 87,373 Contract Services 166,428 103,940 51% b) 204,800 225,760 20,960 Env Health-On Site Prog 340,564 172,900 60% 288,484 390,223 101,739 Planning-Current 798,221 295,579 47% 634,602 761,522 126,920 Planning-Long Range 348,545 151,856_ 55% 274,527 329,432 54,905 Total Revenues 3,825,796 1,699,336 54% 3,168,588 4,048,625 880,037 Expenditures Admin-Operations 1,311,935 544,406 34% c) 1,610,396 1,617,896 (7,500) Admin-GIS 117,502 40,993 33% 124,246 124,246 - Admin-Code Enforcement 208,357 92,341 34% 275,515 275,515 - Building Safety 599,764 220,435 33% d) 672,796 757,796 (85,000) Electrical 200,596 73,634 34% 218,300 218,300 - Contract Services 163,822 73,859 45% e) 162,658 187,057 (24,399) Env Health-On Site Pgm 160,291 62,977 37% 171,529 171,529 - Planning-Current 581,155 212,163 32% 665,901 665,901 - Planning-Long Range 356,807 113,043 25% 450,498 450,498 - Transfers Out(D/S Fund) 179,155 - 0% 179,035 179,035 - Total Expenditures 3,879,383 1,433,850 32% 4,530,874 4,647,773 (116,899) Revenues less Expenditures (53,586) 265,486 (1,362,286) (599,148) 996,936 Transfers In General Fund-Gen Ops 854,872 - 0% f) 465,121 - (465,121) General Fund-L/R Planning 495,360 165,120 33% 495,360 495,360 - A&T Reserve(D/S assistance) 89,577 - 0% f) 89,518 - (89,518) Other - - 0% 100 - (100) Total Transfers In 1,439,809 165,120 16% 1,050,099 495,360 (554,739) Change in Fund Balance 1,386,223 430,606 (312,187) (103,788) 208,399 Beginning Fund Balance 192,482 1,578,705 227% 696,290 1,578,705 882,415 Ending Fund Balance $1,578,705 $2,009,311 * $ 384,103 $1,474,917 $1,090,814 * FY 2014 Contingency-$ 384,103 a)$2,500 to be paid by City of La Pine to set up City's new plan and zoning designations in GIS b)Additional revenue generated from contract plan review and inspections services(Sisters, Redmond) c) Includes$63,891 for the Computer Software, additional Accela training expenses &computer replacement d) Proposed conversion of on-call Sisters building staff to permanent position and re-create Assistant BO position e)Additional contract(on-call)services required to meet plan review and inspection service demands f) Beginning Fund Balance and FY 14 revenues are projected to be sufficient to cover FY 14 expenditures Page 9 ROAD Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date (33% of Year) FY 2014 of Actual Actual Budget Budget Projection [$Variance Revenues Federal Grant(ARRA) 7,335 - n/a - - - Mineral Lease Royalties 140,591 12,302 9% 140,000 140,000 - Forest Receipts 1,265,279 - 0% a) 356,270 356,270 - Federal -PILT Payment - 1,064,365 n/a b) - 1,064,365 1,064,365 State Miscellaneous 542,290 - 0% 773,452 773,452 - Motor Vehicle Revenue 10,495,426 3,774,335 36% 10,554,500 10,554,500 - City of Bend 45,486 39,677 13% c) 310,000 310,000 - City of Redmond 315,525 27,482 7% c) 370,000 370,000 - City of Sisters 1,861 84,691 847% c) 10,000 100,000 90,000 City of La Pine 10,000 - 0% c) 10,000 10,000 - Interest on Investments 32,342 12,949 72% 18,000 18,000 - Interfund Contract 526,110 - 0% d) 562,000 562,000 - Equipment Repairs 255,369 54,389 25% 220,000 220,000 - Vehicle Repairs 82,542 - 0% 90,000 90,000 - Vegetation Management 49,503 - n/a d) - - - Forester 24,628 - 0% d) 1,500 1,500 - Other Inter-fund Services 30,387 12,237 98% 12,500 12,500 - Inter-Fund Sales- Fuel 623,074 155,749 28% 550,000 550,000 - Sale of Equip &Material 287,313 9,594 4% 270,000 270,000 - Miscellaneous 35,018 29,282 126% e) 23,200 43,200 20,000 Total Revenues 14,770,079 5,277,055 37% 14,271,422 15,445,787 1,174,365 Expenditures Personnel Services 5,303,241 1,767,537 33% 5,385,717 5,385,717 - Materials and Services 7,277,398 3,404,589 33% 10,306,609 10,306,609 - Capital Outlay 67,987 - 0% 2,882,108 2,882,108 - Transfers Out 275,000 - 0% 450,000 450,000 - Total Expenditures 12,923,627 5,172,126 27% 19,024,434 19,024,434 - Revenues less Expenditures 1,846,452 104,929 (4,753,012) (3,578,647) 1,174,365 Trans In-Solid Waste 276,272 70,537 25% d) 282,148 282,148 - Trans In-Transp SDC - - 0% 400,000 400,000 - Trans In-Road Imp Res - - 0% 1,000 1,000 - Total Transfers In 276,272 70,537 10% 683,148 683,148 - Change in Fund Balance 2,122,724 175,466 (4,069,864) (2,895,499) 1,174,365 Beginning Fund Balance 4,723,852 6,846,576 114% 6,014,368 6,846,576 832,208 Ending Fund Balance $ 6,846,576 $7,022,042 * $ 1,944,504 $3,951,077 $2,006,573 * FY 2014 Contingency-$ 1,944,504 a) Payment received annually in January b) One-time PILT payment. Not anticipated at the time the FY 2014 budget was adopted c)Billed upon completion of work d) Payments to be received in June 2014 from other Road Department funds Page 10 e)$20,000 claim reimbursement for damaged stop light in La Pine ADULT PAROLE &PROBATION Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date(33% of Year) FY 2014 %of ' Actual Actual Budget Budget Projection I $ Variance Revenues DOC Measure 57 219,240 - 0% a) 219,240 219,240 - State Miscellaneous 4,301 - 0% b) 4,301 4,301 - Alternate Incarceration 7,408 49% c) 15,000 15,000 - State Subsidy 22,329 7,197 52% 13,826 13,826 - SB 1145 2,748,555 1,516,014 51% 2,951,504 2,951,504 - Probation Work Crew Fees 14,136 1,987 15% 13,376 13,376 - Claims Reimbursement 6,997 n/a d) - 6,997 6,997 Miscellaneous 4,648 1,474 33% 4,500 4,500 - Electronic Monitoring Fee 177,947 69,159 44% e) 156,000 207,477 51,477 Probation Superv. Fees 189,330 61,097 35% 175,000 175,000 - Interest on Investments 5,743 2,003 33% 6,000 6,000 - Interfund -Sheriff 50,000 16,667 33% 50,000 50,000 - Sale of Equipment 250 - n/a - - - Crime Prevention Grant 50,000 12,500 25% f) 50,000 50,000 - CFC-Domestic Violence 63,906 17,560 24% f) 73,938 73,938 - Total Revenues 3,550,384 1,720,063 46% 3,732,685 3,791,159 58,474 Expenditures Personnel Services 2,956,034 1,063,455 32% 3,326,077 3,326,077 - Materials and Services 912,384 327,870 34% e) 955,003 1,005,878 (50,875) Capital Outlay - - 0% 100 - 100 Total Expenditures 3,868,418 1,391,325 32% 4,281,180 4,331,955 (50,775) Revenues less Expenditures (318,034) 328,738 (548,495) (540,796) 7,699 Transfers In-General Fund 435,328 150,396 33% 451,189 451,189 - Change in Fund Balance 117,294 479,134 (97,306) (89,607) 7,699 Beginning Fund Balance 630,226 747,520 106% 707,953 747,520 39,567 Ending Fund Balance $ 747,520 $1,226,653 * $ 610,647 $ 657,913 $ 47,266 * FY 2014 Contingency-$ 610,647 a) M57 contract finalized waiting for payment b) Payment usually not received until 3rd quarter c) Utilization of AIP funds trending higher than expected d) Insurance settlement e) Program utilization increase f) Payments received quarterly Page 11 CHILDREN &FAMILIES COMMISSION ' Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date (33% of Year) FY 2014 %of Actual Actual Budget Budget Projection I $Variance Revenues Federal Grants 252,020 63,280 16% a) 402,044 292,513 (109,531) Title IV- Family Sup/Pres 39,533 - 0% 19,767 21,994 2,227 HealthyStart Medicaid 80,557 - 0% a) 30,000 80,000 50,000 Youth Investment 196,053 - n/a a) - 125,048 125,048 State Prevention Funds 65,270 - n/a - - - HealthyStart/R-S-G 219,950 - 0% a) 119,539 210,869 91,330 OCCF Grant 392,440 - 0% a) 89,475 144,960 55,485 Charges for Svcs-Misc 5,148 50 3% 2,000 2,000 - Program Fees 5,645 2,670 n/a - 6,060 6,060 Court Fines & Fees 73,959 25,695 34% 75,034 77,086 2,052 Interest on Investments 3,659 951 95% 1,000 1,000 - Donations 13 - n/a - - - Interfund Grants 358,343 - 0% a) 350,375 329,624 (20,751) Total Revenues 1,692,590 92,647 9% 1,089,234 1,291,154 201,920 Expenditures Personnel Services 570,985 178,558 31% 573,849 573,849 - Materials and Services 1,424,002 211,231 19% a) 1,093,135 1,355,362 (262,227) Total Expenditures 1,994,987 389,789 23% 1,666,984 1,929,211 (262,227) Revenues less Expenditures (302,397) (297,142) (577,750) (638,057) (60,307) Transfers In General Fund 275,984 92,912 33% 278,739 278,739 - General Fund -Other - 22,338 25% 89,350 89,350 - Total Transfers In 275,984 115,250 31% 368,089 368,089 - Change in Fund Balance (26,413) (181,893) (209,661) (269,968) (60,307) Beginning Fund Balance 574,985 548,572 146% 375,704 548,572 172,868 Ending Fund Balance $ 548,572 $ 366,680 * $ 166,043 $ 278,604 $ 112,561 FY 2014 Contingency-$166,043 a) Revised to reflect actual award For reporting purposes, this fund is still shown as a single fund under the Commission on Children and Families. It represents the activities of Fund 370, "Regional Early Learning Hub" and Fund 393, "Substance Abuse Prevention". It is anticipated that Fund 393 activities will be combined with other existing programs next year. It is still unclear whether the Early Learning Hub for Central Oregon will get funded by the State. It is anticipated that the Commission on Children and Families will no longer be funded by the State next year. Page 12 SOLID WASTE Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date(33%of Year) FY 2014 %of - Actual Actual Budget Budget Projection 1$Variance Operating Revenues Miscellaneous 19,127 6,649 30% 22,000 22,000 - Franchise 3% Fees 209,076 11,819 6% a) 200,000 200,000 - Commercial Disp. Fees 971,213 368,490 39% 954,100 954,100 - Private Disposal Fees 1,376,005 574,779 44% 1,309,350 1,309,350 - Franchise Disposal Fees 3,980,498 1,484,428 36% 4,095,525 4,095,525 - Yard Debris 107,801 41,839 49% b) 85,000 85,000 - Special Waste 73,568 24,342 97% c) 25,000 25,000 - Interest 8,118 3,341 42% 8,000 8,000 - Leases 10,801 4,500 42% 10,801 10,801 - Recyclables 47,033 17,047 38% 45,000 45,000 - Miscellaneous 3,131 - n/a - - - Total Operating Revenues 6,806,370 2,537,234 38% 6,754,776 6,754,776 - Operating Expenditures Personnel Services 1,651,419 597,286 32% 1,868,124 1,868,124 - Materials and Services 2,808,337 901,527 27% 3,311,993 3,311,993 - Debt Service 946,711 - 0% d) 930,157 930,157 - Capital Outlay 76,335 23,666 43% e) 55,000 55,000 - Total Operating Expenditures 5,482,802 1,522,479 25% 6,165,274 6,165,274 - Operating Rev less Exp 1,323,569 1,014,755 589,502 589,502 - Transfers Out Road 276,272 70,537 25% f) 282,148 282,148 - Capital Reserve 630,000 278,750 51% g) 545,000 545,000 - Total Transfers Out 906,272 349,287 42% 827,148 827,148 - Change in Fund Balance 417,297 2,187,947 - (237,646) (237,646) - Beginning Fund Balance 807,470 1,224,767 148% 825,655 1,224,767 399,112 Ending Fund Balance $1,224,767 $3,412,714 * $ 588,009 $ 987,121 $399,112 * FY 2014 Contingency-$ 588,009 a) Due April 15, 2014 b)Seasonal c) Unpredictable-revenue mainly from clean-up projects d) Payments made November and May e) No capital purchases made yet f)Transfers will be made quarterly g) As requested during the year Page 13 RISK MANAGEMENT Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date(33%of Year) FY 2014 %of Actual Actual Budget Budget Projection I $Variance Revenues Inter-fund Charges: General Liability 262,333 90,941 33% 272,823 272,823 - Property Damage 313,480 108,842 33% 326,526 326,526 - Vehicle 173,635 54,717 33% 164,150 164,150 - Workers'Compensation 1,448,553 504,063 33% 1,512,188 1,512,188 - Unemployment 254,165 103,398 33% 310,203 310,203 - Claims Reimb-Gen Liab/Property 34,401 705 2% 40,000 40,000 - Process Fee-Events/Parades 1,300 245 11% 2,300 2,300 - Miscellaneous 76 14 18% 80 80 - Skid Car Training 23,060 4,230 30% 14,000 14,000 - Interest on Investments 12,226 4,377 36% 12,050 12,050 - TOTAL REVENUES 2,523,228 871,531 33% 2,654,320 2,654,320 - Direct Insurance Costs: GENERAL LIABILITY Settlement/Benefit 382,659 121,793 Defense 50,919 14,455 Professional Service 85,751 1,025 Insurance 148,035 148,589 Loss Prevention 8,790 113 Miscellaneous 3,290 2,741 Repair/Replacement 200 2,000 Total General Liability 679,645 290,717 73% 400,000 450,000 (50,000) PROPERTY DAMAGE Insurance 159,171 166,668 Repair/Replacement 54,449 40,463 Total Property Damage 213,620 207,131 83% 250,000 270,000 (20,000) VEHICLE Insurance 366 205 Loss Prevention 16,030 1,377 Repair/Replacement 54,919 10,877 Total Vehicle 71,316 12,459 10% 120,000 100,000 20,000 WORKERS' COMPENSATION Settlement/Benefit 367,051 142,755 Insurance 141,960 103,107 Loss Prevention 36,000 18,857 Miscellaneous 46,366 12,738 Total Workers'Compensation 591,376 277,457 35% 800,000 700,000 100,000 UNEMPLOYMENT-Settlement/Benefits 137,082 55,103 28% 200,000 180,000 20,000 Total Direct Insurance Costs 1,693,039 842,867 48% 1,770,000 1,700,000 70,000 Insurance Administration: Personnel Services 308,508 98,243 29% 333,327 333,327 - Materials&Srvc, Capital Out. &Tranfs. 131,414 46,622 24% 197,193 197,093 100 Total Expenditures 2,132,961 987,732 43% 2,300,520 2,230,420 70,100 Change in Fund Balance 390,267 (116,201) 353,800 423,900 70,100 Beginning Fund Balance 2,240,791 2,631,057 2,517,479 2,631,057 113,578 Ending Fund Balance $2,631,057 $2,514,857 * $ 2,871,279 $ 3,054,957 $ 183,678 * FY 2014 Contingency-$2,871,279 Page 14 DESCHUTES COUNTY 9-1-1 Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to Date FY 2013 (33% of Year) FY 2014 of Actual Actual Budget Budget Projection I $Variance Revenues Property Taxes-Current 6,323,533 761,805 13% a) 5,947,600 6,137,600 190,000 Property Taxes- Prior 319,349 106,119 48% 219,007 219,007 - Federal Grants 46,514 - 0% b) 200,000 200,000 - State Reimbursement 35,066 11,706 33% 36,000 36,000 - Telephone User Tax 767,453 - 0% c) 750,000 750,000 - Data Network Reimb. 64,247 - 0% 30,000 30,000 - Jefferson County 30,755 684 2% 30,000 30,000 - User Fee 69,012 38,879 72% 54,000 54,000 - Police RMS User Fees 229,103 - 0%d) 256,791 256,791 - Contract Payments 11,885 - 0% 137,000 137,000 - Miscellaneous 10,084 6,666 74% 9,000 9,000 - Claims Reimbursement 46,760 - n/a - - - Interest 54,324 16,608 27% 60,600 60,600 - Total Revenues 8,008,083 942,467 12% 7,729,998 7,919,998 190,000 Expenditures Personnel Services 3,982,162 1,541,417 35% 4,432,356 4,432,356 - Materials and Services 1,929,460 616,394 29% 2,132,476 2,132,476 - Capital Outlay 81,515 - 0% e) 350,000 350,000 - Total Expenditures 5,993,138 2,157,811 31% 6,914,832 6,914,832 - Revenues less Expenditures 2,014,945 (1,215,345) 815,166 1,005,166 190,000 Transfers Out- Reserve Fund 500,000 - 0% 7,800,000 7,800,000 - Change in Fund Balance 1,514,945 (1,215,345) (6,984,834) (6,794,834) 190,000 Beginning Fund Balance 8,883,086 10,398,030 106% 9,800,000 10,398,030 598,030 Ending Fund Balance $10,398,030 $ 9,182,686 * $2,815,166 $3,603,196 $ 788,030 * FY 2014 Contingency-$2,815,166 a) Current year taxes due November, February and May b) Reimbursement grant for CAD to CAD Capital Expenditures. No Capital expenditures made to date c) Payments received quarterly-October, January,April and July d) Billed annually e) Capital projects have been underway but invoices not yet received Page 15 Health Benefits Trust Statement of Financial Operating Data Through October 31,2013 FY 2014-Year to FY 2013 Date(33%of Year) FY 2014 %change-FY 2014 projection %of over FY 2013 Actual Actual Budget Budget Projection $Variance actual Revenues: Internal Premium Charges 12,874,815 4,777,497 33.5% 14,269,138 14,332,491 63,353 11.3% Part-Time Employee Premium 30,280 6,000 15.0% 40,000 17,000 (23,000) -43.9% Employee Monthly Co-Pay 643,918 227,665 23.2% 980,000 800,000 (180,000) 24.2% COIC 1,405,518 521,107 32.7% 1,592,750 1,592,750 - 13.3% Retiree/COBRA Co-Pay 963,987 366,425 38.2% 958,333 1,100,000 141,667 14.1% Prescription Rebates 99,330 33,755 66.9% 50,493 50,493 - Claims Reimbursements 50,493 1,425 n/a - 1,425 1,425 Miscellaneous 1,240 50 n/a - 50 50 Interest 70,959 20,391 34.0% 60,000 61,000 1,000 -14.0% Total Revenues 16,140,540 5,954,316 33.2% 17,950,714 17,955,209 4,495 11.2% Expenditures: Personnel Services(all depts) 197,101 57,050 27.2% 209,676 175,536 34,140 -10.9% Materials&Services Admin&Wellness Claims Paid-Medical 11,879,332 3,592,946 29.2% a) 12,321,732 11,508,447 813,285 -3.1% Claims Paid-Prescription 1,059,923 277,149 26.0% a) 1,064,841 1,015,195 49,646 -4.2% Claims Paid-Dental/Vision 1,835,199 534,650 29.3% a) 1,825,442 1,803,978 21,464 -1.7% Claims Refunds (131,375) (25,211) n/a - (25,211) 25,211 -80.8% Stop Loss Insurance Premium 336,407 95,433 25.4% 375,000 375,000 - 11.5% State Assessments 194,510 42,436 19.7% 215,000 215,000 - 10.5% Administration Fee(EMBS) 334,141 110,363 33.4% 330,000 330,000 - -1.2% Preferred Provider Fee 50,841 17,043 31.0% 55,000 55,000 - 8.2% Health Impact 52,224 4,327 7.9% 55,000 4,327 50,673 -91.7% Other-Administration 101,616 11,784 19.6% 60,162 60,162 - -40.8% Other-Wellness 49,996 39,867 52.0% 76,739 156,000 (79,261) 212.0% Admin&Wellness 15,762,814 4,700,786 28.7% 16,378,916 15,497,898 881,018 -1.7% Deschutes On-site Clinic Contracted Services 804,311 217,742 23.8% 915,000 915,000 - 13.8% Medical Supplies 33,155 11,605 116.0% 10,000 11,605 (1,605) -65.0% Equipment 2,170 - 0.0% 250 250 - Other 46,715 10,116 26.4% 38,310 38,310 - -18.0% Total DOC 886,351 239,463 24.9% 963,560 965,165 (1,605) 8.9% Deschutes On-site Pharmacy Contracted Services 367,193 49,721 17.2% 289,004 289,004 - -21.3% Medication and Drugs 1,446,770 482,354 32.2% b) 1,500,000 1,500,000 - 3.7% Other 63,518 4,152 35.0% 11,876 11,876 - -81.3% Total Pharmacy 1,877,480 536,227 29.8% 1,800,880 1,800,880 - -4.1% Total Expenditures 18,723,746 5,533,526 28.6% 19,353,032 18,439,479 913,553 -1.5% Change in Fund Balance (2,583,206) 420,791 (1,402,318) (484,270) 918,048 Beginning Fund Balance 14,551,028 $11,967,822 102% 11,700,000 11,967,822 267,822^ Ending Fund Balance $ 11,967,822 $12,388,612 * $ 10,297,682 $11,483 552 $1,185,870 I %of Exp covered by Rev 86.2% 107.6% 92.8% 97.4%J *FY 2014 Contingency-$10,297,682 Page 16 a) Projection based on twelve-month rolling average b) YTD includes October,which is estimated based on September actual FAIR AND EXPO CENTER Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date(33% of Year) FY 2014 %of Actual Actual Budget Budget Projection $Variance Revenues Miscellaneous $ 4,102 $ 3,073 61.5% $ 5,000 $ 5,000 $ - Vending Machines - - 0.0% 1,500 1,500 - Telephone Fees- Events 255 140 n/a - 140 140 Special Events Revenues 383,339 132,068 33.4% 395,000 395,000 - Interest 76 313 n/a - 313 313 Storage 35,283 8,555 15.8% 54,000 54,000 - Camping at F& E 16,700 25 0.2% 11,000 11,000 - Horse Stall Rental 48,036 1,635 5.5% 30,000 30,000 - Concession % - Food 139,006 19,434 12.8% 152,000 152,000 - Rights(Signage, etc.) 85,338 6,000 7.5% 80,000 80,000 - Grants - - n/a a) 180,000 180,000 Interfund Rentals 2,400 800 33.3% 2,400 2,400 - Annual County Fair(net) 245,000 205,000 82.0% b) 250,000 205,000 (45,000) Interfund Contract 45,000 - n/a - - - Total Revenues 1,004,534 377,043 38.4% 980,900 1,116,353 135,453 Expenditures: Personnel Services 821,293 302,286 34.1% 887,593 887,593 - Materials and Services 580,396 224,204 46.4% c) 483,533 523,533 (40,000) Debt Service 114,117 - 0.0% 112,974 112,974 - Capital Outlay 9,000 - 0.0% a) 100 180,000 (179,900) Total Expenditures 1,524,806 526,490 35.5% 1,484,200 1,704,100 (219,900) Revenues less Expenditures (520,272) (149,447) (503,300) (587,747) (84,447) Transfers In: General Fund 320,000 124,728 33.3% 374,186 374,186 - Room Tax-6% (Fund 160) 25,744 8,580 33.3% 25,744 25,744 - Room Tax- 1% (Fund 170) 82,800 63,052 33.3% 189,156 189,156 - Fair&Expo Reserve 50,000 25,000 25.0% 100,000 100,000 - Total Transfers In 478,544 221,360 32.1% 689,086 689,086 - Change in Fund Balance (41,728) 71,913 185,786 101,339 (84,447) Beginning Fund Balance 35,055 (6,673) 48,827 (6,673) (55,500) Ending Fund Balance $ (6,673) $ 65,240 $ 234,613 $ 94,665 $ (139,948) '`FY 2014 Contingency-$234,613 a) Pacific Power and Energy Trust grant for solar panels on the Event Center b) Revenues and Expenses for the annual fair recorded in a separate fund and the available net income is transferred to the Fair& Expo Center Fund c) The expenditure for the fire alarm/suppression system was not included in the FY 2014 budget Page 17 JUSTICE COURT Statement of Financial Operating Data Through October 31, 2013 FY 2014-Year to FY 2013 Date(33%of Year) FY 2014 %of Actual Actual Budget Budget Projection [ $Variance Revenues Court Fines& Fees a) 357,920 100,910 24% b)c) 422,500 422,500 - State Miscellaneous - - 0% 600 600 - Interest on Investments 796 256 28% 900 900 - Total Revenues 358,716 101,166 24% 424,000 424,000 - Expenditures Personnel Services 365,245 137,900 31% 445,984 445,984 - Materials and Services 166,294 49,842 26% 190,210 190,210 - Total Expenditures 531,539 187,741 30% 636,194 636,194 - Revenues less Expenditures (172,823) (86,576) (212,194) (212,194) - Transfers In-General Fund a) 221,716 46,940 33% 140,819 140,819 - Change in Fund Balance 48,893 (39,636) (71,375) (71,375) - Beginning Fund Balance 104,925 153,818 124% 124,241 153,818 29,577 Ending Fund Balance $ 153,818 $ 114,182 * $ 52,866 $ 82,443 $ 29,577 * FY 2014 Contingency-$ 52,866 a) FY 2013: The Transfer from the General Fund was$579,636. As Justice Court Fines & Fees recorded in the General Fund as revenue totalled $357,920, the net transfer to Justice Court was$221,716 b) YTD Actual reported on "cash basis". October fines received November 13-$32,963.45 c) Historically, collections are heaviest during the months of February-April Page 18 V1 LI) W4 C 5 ¢+ .- U U PI o ,s .4 a) 0 a) o U n 441tt 7=1 o cA pa c...) ti Z vs • • • • • Pi "1°t Cor) I Deschutes County Bethlehem Inn (Fund 128) FY 2013-Actual; FY 2014-Year to Date Actual, Budget and Projection Through October 31, 2013 FY 2014-Year to FY 2013 Date(33% of Year) FY 2014 %of Actual Actual Budget Budget Projection $Variance Revenues Grants-Private $ - $ - 0.0% $2,700,600 $ - $(2,700,600) Lease Payments 24,408 8,136 33.3% 24,408 24,408 - Total Revenues 24,408 8,136 33.3% 2,725,008 24,408 (2,700,600) Expenditures Debt Service: Interest Expense 14,617 4,785 19.6% 24,408 14,300 10,108 Total Expenditures 14,617 4,785 19.6% 24,408 14,300 10,108 Change in Fund Balance 9,792 3,351 2,700,600 10,108 (2,690,492) Beginning Fund Balance (2,710,173) (2,700,381) 100.0% (2,700,600) (2,700,381) 219 Ending Fund Balance $(2,700,381) $(2,697,030) $ - $(2,690,273) $(2,690,273) a) Interest on October 2013 negative cash balance: $1,200.25. b) Inception through October 31, 2013: Revenues-Lease Payments $ 81,360 Expenditures: Land/Building(Amertitle)-July 2007 2,241,313 Hickman Williams 17,578 City of Bend-May 2008 250,000 KN EX CO 5,289 Kleinfelder 3,732 Total expended on facility 2,517,913 Interest on Negative Cash Balance 260,478 Total expended 2,778,390 Net $(2,697,030) Deschutes County JRF 11/4/2013 Campus Improvement(Fund 463) Inception through October 31, 2013 Received and Committed or Expended Projected Total RESOURCES: Transfer in(Note A) $ 796,617 $ - $ 796,617 Transfer in -General Fund 150,000 - 150,000 Transfer in-General County Projects(142)(Note B) 350,000 350,000 700,000 Oregon Judicial Dept Payment 12,750 - 12,750 Interest Revenue 7,541 500 8,041 Total Resources 1,316,907 350,500 1,667,407 EXPENDITURES: Basement Jail/Boiler Demolition 168,109 - 168,109 Basement Public File View 141,862 - 141,862 1st Floor Public File View 117,980 - 117,980 1st Floor Restrooms/Haslinger Court 401,231 - 401,231 1st Floor DeHoog/Bagley Court/Jury Room 80,685 80,685 Accounting Area Open Workspace 15,210 - 15,210 Courthouse DA Offices 34,348 - 34,348 Hearing Room Justice Bldg 2/Basement Phases 1/2 38,789 660,818 699,606 "Stone Building" 720 - 720 Internal Service Fund Charges 5,405 2,250 7,655 Total Materials&Services 1,004,340 663,068 1,667,407 Revenues less Expenditures $ 312,568 $ (312,568) w - Notes: A. Remaining proceeds from the FF&C borrowing for the OSP/911 Building. B. Projected$350,000 subject to being approved in the FY 2015 budget. Completed Projects Deschutes County Jail Project(Fund 456) Phase II-Beginning July 1,2012 Through October 31,2013 Actual Total(Actual+ Project Budget (Through Committed Projected Committed+ Variance (Note 1) October 31, Projected) 2013) Resources Interest $ 26,157 $ 18,590 $ - $ 7,567 $ 26,157 $ - Transfers In: - General County Projects(142) 100,000 100,000 - - 100,000 - General Capital Reserve(143) 1,250,000 1,250,000 - - 1,250,000 - General Fund(001) 750,000 750,000 - - 750,000 - Jamison Acq&Remodel(457)(Note 2) 540,939 540,939 - - 540,939 - Bond Issuance,net 8,400,000 8,403,481 - - 8,403,481 3,481 Total Resources 11,067,096 11,063,011 - 7,567 11,070,577 3,481 Expenditures Architect 820,000 707,788 106,612 5,600 820,000 - Engineering - 7,408 - - 7,408 (7,408) Environmental - 593 - - 593 (593) Surveying - 500 - - 500 (500) Consulting 35,000 390 - 34,610 35,000 - Building&Grounds - 9,127 - - 9,127 (9,127) Fees&Permits,SDCs(water&sewer) 310,000 273,580 - 36,420 310,000 - Insurance 40,000 7,938 - - 7,938 32,062 Internal Service Fund Charges 33,700 12,589 21,111 - 33,700 - Miscellaneous Administrative 30,000 7,824 - 22,176 30,000 - FF&E(Storage System) 40,000 - - 40,000 40,000 - Construction-Expansion&Remodel 9,458,396 1,040,009 8,553,267 - 9,593,276 (134,880) Construction Contingency 300,000 - - 183,036 183,036 116,964 Total Expenditures 11,067,096 2,067,745 8,680,991 321,842 11,070,577 (3,481) Net $ - $8,995,266 $(8,680,991) 314,275) $ - $ - Note 1: The project includes the Jail expansion and a remodel for the Medical Unit r o a co OM O 0 co co U) O 1CU ' ' ' .- ' d^ CO 'Cr N C o O rr CGr Co. go co co r q 0) U) 15 U7 1l7 Ill N } LL O co a a a ('? r O a 0 r O a a N 0 N d- CI R. cp ' 00000 aOr� OO N- 0 ' 0 ' f• N � V U N C) Q O t• '1i O r Q 0 C N N co U 1.1.1 CI) a N a ) r` N ac7O N r` 0 o ti a U O r` r Cr) r N CO 0 O O tY 0_ r N r r N T CCv) a = N ' or9aOa ell as - aO er c co O) a C) air ' a r o a a r O a N a a N v- N CO CC) r C "O O a a 0 a 0 a 0 I� a O ' N- O r ' CO O ' C '2 O) ON4000N- U) O - aa cp NrCM CO r` 0 O = 1Of) N a N. 117 CO CO co t"] N N CO CO r CR t N a m co r• .- 1. cc r- 1— c r CC_0 U U _O 0 7i) -a a u) C uj o) C LL U U r N C") C.1 CO O Cr) 1e! o 7 m •N r a a N CC') CO) er 1C) r N CO r CO d" 0 09 . 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Ground Transport/Parking - - - - - Total Unger 397 10 ; 790 1,198 Tony DeBone Conf/Sem &Educ/Training 520 - 184 340 1,044 Travel Meals - 1,197 Accommodations 618 82 - 658 150 - . ., 415 708 - —..-- - ..._.;: Airfare 05 411 516 Mileage reimbursement Ground Transport - - - 74 1,795 -474 Total DeBone 184 ! 1,166 3,620 Total Conf/Sem &Edu/Tra nn 725 35 _..-... . Department � ... : _. . ._ g---- - 194 1,055 2,009 Travel Meals - 82 Accommodations ons 810 164 - 1,143 2,116 Airfare 658 50 - 708 Mileage Reimbursement - 583 104 411 1,098 Ground Transport 73 - 74 608 2 298 6,086 Total -BOCC Department 2,192 987 _._ � _. _.-- FY 2014 Original Budget 15,250 Percent of FY 2014 Budget Expended BOCC County College Office/Copier Supplies 176 - 48 224 Meeting Supplies - - 289 1,968 2,257 —....._ _ 2 480 y g 289 2,015 Total BOCC County College 176 NOTE: Above amounts include only those expenditures processed y p nditures rocessed for payment. may - _ ----- processed for payment. Additional conference and travel costs m have been incurred, but not roce JRF 10/31/2013 1` Es c v OK Deschutes County Finance Department a Wayne Lowry, Finance Director 1300 NW Wall St, Suite 203, Bend, OR 97701-1960 P.O. Box 6005, Bend, OR 97708-6005 (541)388-6559- Fax(541)749-2909 www.co.deschutes.or.us Date: December 2, 2013 To: Board of County Commissioners Tom Anderson, County Administrator From: Wayne Lowry, Finance Director IL fir RE: Investment Policy Update The current Deschutes County investment policy(Board policy F-10)was last updated September 20, 2012. In order to position the County to comply with the statutes regarding the amounts held in the local government investment pool and to provide future opportunities for a more active investment portfolio, I am recommending a major update to the County's investment policy. The Oregon Short Term Fund Board developed a standard model investment policy for local governments that incorporates all the features that should be present in such a policy. The model policy provides a framework for a local government to meet the statutory requirements and to make choices on the types of investments it will use and how the risks related to credit, liquidity and interest rate are mitigated. I have attached a draft investment policy that used the model policy as the starting point. Here are some highlights of what you will find in the draft policy: 1. Priority of objectives—The primary objectives of the policy include preservation of capital, liquidity and return, in that order of priority. (section IV, page 1) 2. Criteria for Brokers/Dealers—The policy establishes minimum criteria and a process for selecting brokers/dealers that the County will work with. (section VI 1, page 3) 3. Authorized Investments—The policy establishes a list of suitable investments consistent with ORS 294-035 that the County will use in its portfolio. (section VIII, page 6) 4. Mitigation of Credit Risk—The policy establishes diversification and credit requirements in the exposure constraints and minimum credit ratings table on page 7. The table limits how much of the portfolio can be invested in each type of instrument and also establishes the minimum credit rating as applicable. (section IX1, page 7&8) 5. Mitigation of Liquidity Risk—this risk is addressed in the portfolio maturity constraint table on page 8. The table establishes the portion of the portfolio that can be invested at various terms. Note that the maximum term is proposed to be 5 years. (section IX2, page 8) The old policy limited investments to a term of 18 months with the exception of 30%of the portfolio that could be invested to 24 months. 6. Mitigation of Interest Rate Risk—Among other standard protections,this risk is addressed by limiting the maximum portfolio average maturity to 2 years. This ensures that even though some securities mature beyond two years,the majority of the portfolio will mature much earlier. (section IX 3, page 9) 7. Reports—The proposed updated policy establishes the content of monthly investment reports to measure the performance of the portfolio and compliance with the policy. (section XIII, page 10& 11) This draft policy was submitted to the Oregon Short Term Fund Board for review in September 2013 and was reviewed at their meeting on October 10,2013. Official comments from the Board are included in a letter to the Finance Director and to each Board member. The letter from the Oregon Short Term Fund Board is attached. I have attached a response to each of the Board's comments and relevant changes have been included in the draft policy. The Deschutes County Investment Advisory Committee met on Thursday,October 24,2013 to consider the proposed investment policy. The committee concurred with the proposal and their comments have been reflected in the proposed policy draft. The proposed draft investment policy is included with this document along with the current investment policy last updated on September 20,2012. I will go through the draft policy proposal with the Board at the work session and answer any questions. The next step in the process is to make any modifications to the policy and then place it on a Board agenda for approval. Once approved,we will move forward with implementation of the new policy. Deschutes County Proposed Investment Policy I. Purpose This Investment Policy defines the parameters within which funds are to be invested by Deschutes County. Deschutes County's purpose is to provide County Level Services for a large portion of Central Oregon. This policy also formalizes the framework, pursuant to ORS 294.135, for Deschutes County's investment activities to ensure effective and judicious management of funds within the scope of this policy. These guidelines are intended to be broad enough to allow designated investment staff to function properly within the parameters of responsibility and authority, yet specific enough to adequately safeguard the investment assets. II. Governing Authority Deschutes County's investment program shall be operated in conformance with Oregon Revised Statutes and applicable Federal Law. Specifically, this investment policy is written in conformance with ORS 294.035; 294.040; 294.052; 294.135; 294.145; and 294.810. All funds within the scope of this policy are subject to these statutes and regulations established by the State of Oregon. Any revisions or extensions of these sections of the ORS shall be assumed to be part of this Investment Policy immediately upon being enacted. III. Scope This policy applies to activities of Deschutes County with regard to investing the financial assets of all County funds including County Service Districts and Trust Funds. Investments of employees' retirement funds,deferred compensation plans,and other funds are not covered by this policy. The amount of funds falling within the scope of this policy over the next three years is expected to range between$90 million and $170 million. IV. General Objectives The primary objectives, in priority order,of investment activities shall be: 1. Preservation of Invested Capital Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.The goal is to mitigate credit risk and interest rate risk. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all reasonably anticipated operating requirements. Furthermore,the portfolio should consist largely of securities with active secondary or resale markets.A portion of the portfolio also may be placed in the Oregon Short Term Fund which offers next-day liquidity.Where possible and prudent,the portfolio should be structured so that investments mature concurrent with anticipated demands. 3. Return The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles,taking into consideration the safety and liquidity needs of the portfolio. Although return consists of both principal return (gains and losses due to market value fluctuations)and income return (yield),this policy discourages Page 1 of 12 active trading and turnover of investments. Investments should generally be held to maturity V. Standards of Care 1. Prudence. The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy,and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported and appropriate action is taken to control adverse developments within a timely fashion as defined in this policy. The"prudent person"standard states: "Investments shall be made with judgment and care, under circumstances then prevailing,which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment,considering the probable safety of their capital as well as the probable income to be derived." 2. Ethics and Conflicts of Interest. Officers and employees involved in the investment process shall refrain from personal activity that could conflict with the proper execution and management of the investment program,or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. Disclosure shall be made to the governing body. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the County. Officers and employees shall,at all times,comply with the State of Oregon Government Standards and Practices code of ethics set forth in ORS Chapter 244. 3. Delegation of Authority and Responsibilities i. Governing Body The Board of County Commissioners will retain ultimate fiduciary responsibility for invested funds. The governing body will receive reports, pursuant to,and with sufficient detail to comply with ORS 294.085 and 294.155. ii. Delegation of Authority Authority to manage investments within the scope of this policy and operate the investment program in accordance with established written procedures and internal controls is granted to the Finance Director/Treasurer, hereinafter referred to as Investment Officer,and derived from the following:ORS 294.035 to 294.053, 294.125 to 294.145, and 294.810. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officer. The Page 2 of 12 Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. All participants in the investment process shall seek to act responsibly as custodians of the public trust. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and supporting procedures. iii. Investment Committee The Deschutes County Board of County Commissioners established an investment advisory committee on April 19,1995 by resolution 95-12520 to provide guidance to the Investment Officer and monitor investment policy compliance. iv. Investment Adviser The Investment Officer may engage the services of one or more external investment managers to assist in the management of the County's investment portfolio in a manner consistent with this investment policy. Investment advisers may be hired on a non-discretionary basis. All investment transactions by approved investment advisers must be pre-approved in writing by the Investment Officer and compliant with this Investment Policy. If the Investment Officer hires an investment adviser to provide investment management services,the adviser is authorized to transact with its direct dealer relationships on behalf of Deschutes County. VI. Transaction Counterparties,Investment Advisers and Depositories 1. Broker/Dealers The Investment Officer shall determine which broker/dealer firms and registered representatives are authorized for the purposes of investing funds within the scope of this investment policy. A list will be maintained of approved broker/dealer firms and affiliated registered representatives. The following minimum criteria must be met prior to authorizing investment transactions. The Investment Officer may impose more stringent criteria. i. Broker/Dealer firms must meet the following minimum criteria: A. Be registered with the Securities and Exchange Commission(SEC); B. Be registered with the Financial Industry Regulatory Authority(FINRA). C. Provide most recent audited financials. D. Provide FINRA Focus Report filings. ii. Approved broker/dealer employees who execute transactions with Deschutes County must meet the following minimum criteria: A. Be a registered representative with the Financial Industry Regulatory Authority(FINRA); B. Be licensed by the state of Oregon; C. Provide certification (in writing)of having read; understood; and agreed to comply with the most current version of this investment policy. Page 3 of 12 iii. Periodic(at least annual) review of all authorized broker/dealers and their respective authorized registered representatives will be conducted by the Investment Officer. Factors to consider would be: A. Pending investigations by securities regulators. B. Significant changes in net capital. C. Pending customer arbitration cases. D. Regulatory enforcement actions. 2. Investment Advisers A list will be maintained of approved advisers selected by conducting a process of due diligence. i. The following items are required for all approved Investment Advisers: A. The investment adviser firm must be registered with the Securities and Exchange Commission(SEC)or licensed by the state of Oregon; (Note: Investment adviser firms with assets under management>$100 million must be registered with the SEC, otherwise the firm must be licensed by the state of Oregon) B. All investment adviser firm representatives conducting investment transactions on behalf of Deschutes County must be registered representatives with FINRA; C. All investment adviser firm representatives conducting investment transactions on behalf of Deschutes County must be licensed by the state of Oregon; D. Certification, by all of the adviser representatives conducting investment transactions on behalf of Deschutes County,of having read, understood and agreed to comply with this investment policy. ii. A periodic(at least annual) review of all authorized investment advisers will be conducted by the Investment Officer to determine their continued eligibility within the portfolio guidelines. Factors to consider would be: A. Pending investigations by securities regulators. B. Significant changes in net capital. C. Pending customer arbitration cases. Regulatory enforcement actions. 3. Depositories i. All financial institutions who desire to become depositories must be qualified Oregon Depositories pursuant to ORS Chapter 295. 4. Competitive Transactions i. The Investment Officer shall obtain and document competitive bid information on all investments purchased or sold in the secondary market.Competitive bids or offers should be obtained,when possible,from at least three separate Page 4 of 12 brokers/financial institutions or through the use of a nationally recognized trading platform. ii. In the instance of a security for which there is no readily available competitive bid or offering on the same specific issue,the Investment Officer shall document quotations for comparable or alternative securities. iii. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price. However,the Investment Officer is encouraged to document quotations on comparable securities. iv. If an investment adviser provides investment management services,the adviser must retain documentation of competitive pricing execution on each transaction and provide upon request. VII. Administration and Operations 1. Delivery vs.Payment All trades of marketable securities will be executed (cleared and settled) by delivery vs. payment(DVP)to ensure that securities are deposited in the County's safekeeping institution prior to the release of funds. 2. Third-Party Safekeeping Securities will be held by an independent third-party safekeeping institution selected by the County.All securities will be evidenced by safekeeping receipts in the County's name. Upon request,the safekeeping institution shall make available a copy of its Statement on Standards for Attestation Engagements(SSAE) No. 16. 3. Internal Controls. The investment officer is responsible for establishing and maintaining an adequate internal control structure designed to reasonably assure that invested funds are invested within the parameters of this Investment policy and, protected from loss,theft or misuse.Specifics for the internal controls shall be documented in writing. The established control structure shall be reviewed and updated periodically by the Investment Officer. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management. The internal controls shall address the following points at a minimum: i. Compliance with Investment Policy ii. Control of collusion. iii. Separation of transaction authority from accounting and record keeping. iv. Custodial safekeeping. v. Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. vi. Clear delegation of authority to subordinate staff members. vii. Confirmation of transactions for investments and wire transfers in written or digitally verifiable electronic form. Page 5 of 12 viii.Dual authorizations of wire and automated clearing house(ACH)transfers ix. Staff training x. Review, maintenance and monitoring of security procedures both manual and automated. 4. An external auditor in conjunction with the annual County audit shall review compliance with Oregon state law and Deschutes County policies and procedures. VIII. Suitable and Authorized Investments 1. Permitted Investments The following investments are permitted pursuant to ORS 294.035,294.040,and ORS 294.810. (Note:Permitted investments may be more restrictive than ORS 294.035 and 294.810). • US Treasury Obligations: U.S. Treasury and other government obligations that carry the full faith and credit guarantee of the United States for the timely payment of principal and interest. • US Agency Obligations:Senior debenture obligations of US federal agencies and instrumentalities or U.S. government sponsored enterprises(GSE). • Oregon Short Term Fund. • Corporate Indebtedness 1. Commercial Paper issued under the authority of section 3(a)2 or 3(a)3 of the Securities Act of 1933. 2. Corporate Bonds • Municipal Debt • Bankers Acceptances • Qualified Institution Time Deposits/Savings Accounts/Certificates of Deposit. 2. Approval of Permitted Investments If additional types of securities are considered for investment, per Oregon state statute they will not be eligible for investment until this Policy has been amended and the amended version adopted by Deschutes County. 3. Prohibited Investments i. Private Placement or"144A"Securities Private placement or"144A"securities are not allowed. For purposes of the policy, SEC Rule 144A securities are defined to include commercial paper privately placed under section 4(a)(2)of the Securities Act of 1933. ii. US Agency Mortgage-backed Securities US agency mortgage-backed securities such as those securities issued by FNMA and FHLMC are not allowed. iii. Securities Lending The County shall not lend securities nor directly participate in a securities lending program. 4. Demand Deposits and Time Deposits Page 6 of 12 i. All demand deposits and time deposits(Examples of time deposits are:certificates of deposit and savings accounts)shall be held in qualified Oregon depositories in accordance with ORS Chapter 295. ii. Demand deposits in qualified depository institutions are considered cash vehicles and not investments and are therefore outside the scope and restrictions of this policy. Pursuant to ORS 294.035(3)(d),time deposits,certificates of deposit and savings accounts are considered investments and within the scope of this policy. IX. Investment Parameters 1. Credit Risk Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. Credit risk will be mitigated by the following guidelines: i. Diversification It is the policy of Deschutes County to diversify its investments. Where appropriate, exposures will be limited by security type; maturity; issuance, issuer,and security type,Allowed security types and Investment exposure limitations are detailed in the table below. ii. Recognized Credit Ratings Investments must have a rating from at least two of the following nationally recognized statistical ratings organizations(NRSRO): Moody's Investors Service; Standard &Poor's;and Fitch Ratings Service as detailed in the table below. Ratings used to apply the guidelines below should be investment level ratings and not issuer level ratings. iii. Portfolio Average Credit Rating The minimum weighted average credit rating of the portfolio's rated investments shall be Aa/AA/AA by Moody's Investors Service;Standard & Poor's;and Fitch Ratings Service respectively. iv. Exposure Constraints and Minimum Investment Credit Ratings. The following table limits exposures among investments permitted by this policy. US Treasury Obligations 100% None US Agency Securities 100% - Per Agency(Senior Obligations Only) 33% - Oregon Short Term Fund Maximum allowed - per ORS 294.810 Bankers'Acceptances 25%(1) Al+/P1/F1+ Time Deposits/Savings 50% - Accounts/Certificates of Deposit(2) Page 7 of 12 Per Institution 25% Corporate Debt(Total) 25%(3) - Corporate Commercial Paper Per Issuer 5.0%l41 A1/P1/F1 Corporate Bonds Per Issuer 5.0%(4) A/A/A Municipal Debt 25% - Municipal Bonds Aa/AA/AA 11125%Maximum per ORS 294.035(D) Iz>As authorized by ORS 294.035(3)(d) 13)35%Maximum per ORS 294.035(D) (4)5%Maximum per ORS 294.035(D) v. Restriction on Issuers With Prior Default History Per ORS 294.040,the bonds of issuers listed in ORS 294.035(3)(a)to (c) may be purchased only if there has been no default in payment of either the principal of or the interest on the obligations of the issuing county, port,school district or city,for a period of five years next preceding the date of the investment. 2. Liquidity Risk Liquidity risk is the risk that an investment may not be easily marketable or redeemable. The following strategies will be employed to mitigate liquidity risks: i. The value of at least 10%of funds available for investing or three months of budgeted operating expenditures will be invested in the Oregon Short Term Fund, with a qualified depository institution,or investments maturing in less than 30days to provide sufficient liquidity for expected disbursements. ii. Funds in excess of liquidity requirements are allowed for investments maturing in greater than one year. However, longer-term investments tend to be less liquid than shorter term investments. Portfolio investment maturities will be limited as follows: Total Portfolio Maturity Constraints: Maturity Constraints Minimum %of Total Portfolio Under 30 days 10%or three months Estimated Operating Expenditures Under 1 year 25% Under 5 years 100% Weighted Average Maturity of Portfolio 2.0 years iii. Reserve or Capital Improvement Project funds may be invested in securities exceeding the maximum term if the maturities of such investments are made to coincide as nearly as practicable with the expected use of the funds. iv. Larger issuance sizes enhance liquidity as there are likely to be a greater number of investors. Issuance sizes above a minimum amount qualify a corporate or Page 8 of 12 municipal debt bond issuance for index eligibility. Index eligible bonds have a significantly larger investor base which improves liquidity. v. Limiting investment in a specific debt issuance improves secondary market liquidity by assuring there are other owners of the issuance. US Agency Securities 50% Corporate Debt - Corporate Commercial Paper 25% Corporate Bonds 25% Municipal Bonds 25% 3. Interest Rate Risk Longer-term investments have the potential to achieve higher returns but are also likely to exhibit higher market value volatility due to the changes in the general level of interest rates over the life of the investment(s). Interest rate risk will be mitigated by providing adequate liquidity for short term cash needs,and by making longer-term investments only with funds that are not needed for current cash flow purposes. Certain types of securities, including variable rate securities,securities with principal pay-downs prior to maturity, and securities with embedded options,will affect the interest rate risk profile of the portfolio differently in different interest rate environments. The following strategies will be employed to control and mitigate adverse changes in the market value of the portfolio due to changes in interest rates: i. Where feasible and prudent, investment maturities should be matched with expected cash outflows to mitigate market risk. ii. To the extent feasible, investment maturities not matched with cash outflows, including liquidity investments under one year,should be staggered to mitigate re- investment risk. iii. No commitments to buy or sell securities may be made more than 14 days prior to the anticipated settlement date,or receive a fee other than interest for future deliveries. iv. The maximum percent of callable securities in the portfolio shall be 25%; v. The maximum stated final maturity of individual securities in the portfolio shall be five years,except as otherwise stated in this policy. vi. The maximum portfolio average maturity(measured with stated final maturity)shall be 2.0 years. X. Investment of Proceeds from Debt Issuance 1. Investments of bond proceeds are restricted under bond covenants that may be more restrictive than the investment parameters included in this policy. Bond proceeds shall be invested in accordance with the parameters of this policy and the applicable bond covenants and tax laws. Page 9 of 12 2. Funds from bond proceeds and amounts held in a bond payment reserve or proceeds fund may be invested pursuant to ORS 294.052. Investments of bond proceeds are typically not invested for resale and are maturity matched with outflows. Consequently, surplus funds within the scope of ORS 294.052 are not subject to this policy's liquidity risk constraints within section IX(2). XI. Investment of Reserve or Capital Improvement Funds 1. Pursuant to ORS 294.135(1)(b), reserve or capital Improvement project funds may be invested in securities exceeding three years when the funds in question are being accumulated for an anticipated use that will occur more than 18 months after the funds are invested,then, upon the approval of the governing body of the county,the maturity of the investment or investments made with the funds may occur when the funds are expected to be used. XII. Guideline Measurement and Adherence 1. Guideline Measurement Guideline measurements will use par value of investments. 2. Guideline Compliance: i. If the portfolio falls outside of compliance with adopted investment policy guidelines or is being managed inconsistently with this policy,the Investment Officer shall bring the portfolio back into compliance in a prudent manner and as soon as prudently feasible. ii. Violations of portfolio guidelines as a result of transactions;actions to bring the portfolio back into compliance and; reasoning for actions taken to bring the portfolio back into compliance shall be documented and reported to the Board of County Commissioners. iii. Due to fluctuations in the aggregate surplus funds balance, maximum percentages for a particular issuer or investment type may be exceeded at a point in time. Securities need not be liquidated to realign the portfolio; however,consideration should be given to this matter when future purchases are made to ensure that appropriate diversification is maintained. XIII. Reporting and Disclosure 1. Compliance The Investment Officer shall prepare a report at least monthly that allows the Board of County Commissioners to ascertain whether investment activities during the reporting period have conformed to the investment policy.The report will also be provided to the investment advisory committee. The report will include, at a minimum,the following: i. A listing of all investments held during the reporting period showing: par/face value; accounting book value; market value;type of investment; issuer;credit ratings;and yield to maturity(yield to worst if callable). ii. Average maturity of the portfolio at period-end. Page 10 of 12 iii. Maturity distribution of the portfolio at period-end. iv. Average portfolio credit quality of the portfolio at period-end. v. Average weighted yield to maturity(yield to worst if callable investments are allowed)of the portfolio. vi. Distribution by type of investment. vii. Transactions since last report. viii.Distribution of transactions among financial counterparties such as broker/dealers. ix. Violations of portfolio guidelines or non-compliance issues that occurred during the prior period or that are outstanding.This report should also note actions(taken or planned)to bring the portfolio back into compliance. 2. Performance Standards/Evaluation At least annually,the Investment Officer shall report comparisons of investment returns to relevant alternative investments and comparative Bond Indexes. The performance of the portfolio should be compared to the performance of alternative investments such as available certificates of deposit;the Oregon Short Term Fund; US Treasury rates;or against one or more bond indices with a similar risk profile(e.g., Bond indexes comprised of high grade investments and maximum maturities of three years). When comparing performance, all fees and expenses involved with managing the portfolio shall be included in the computation of the portfolio's rate of return. 3. Marking to Market. The market value of the portfolio shall be calculated at least monthly and a statement of the market value of the portfolio shall be included in the monthly report. 4. Audits Management shall establish an annual process of independent review by the external auditor to assure compliance with internal controls. Such audit will include tests deemed appropriate by the auditor. XIV. Policy Maintenance and Considerations 1. Review The investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. The annual report should also serve as a venue to suggest policies and improvements to the investment program,and shall include an investment plan for the coming year. 2. Exemptions Any investment held prior to the adoption of this policy shall be exempted from the requirements of this policy. At maturity or liquidation,such monies shall be reinvested as provided by this policy. 3. Policy Adoption and Amendments Page 11 of 12 ■ This investment policy and any modifications to this policy must be formally approved in writing by the Board of County Commissioners. This policy must be submitted to the Oregon Short Term Fund (OSTF) Board for review if: i. This policy allows maturities beyond 18 months unless the funds are being accumulated for a specific purpose, including future construction projects,and upon approval of the Board of County Commissioners,the maximum maturity date matches the anticipated use of the funds(ORS 294.135(1)(b)and 294.135(3)). And either: A. This policy has never been submitted to the OSTF Board for comment; I Or B. Material changes have been made since the last review by the OSTF Board. Regardless of whether this policy is submitted to the OSTF Board for comment,this policy shall be re-submitted not less than annually to the Board of County Commissioners for approval. Page 12 of 12 OREGON ND SHORT BOARD TERM F c� 350 WINTER STREET NE,SUITE 100 SALEM,OREGON 97310-0940 (503)378.4633 ", FAX(503)373.1179 8 OREGON SHORT TERM FUND BOARD November 25, 2013 Board of County Commissioners Deschutes County 1300 NW Wall Street Suite 200 Bend, OR 97701 SUBJECT: DESCHUTES COUNTY INVESTMENT POLICY REVIEW Dear Board of County Commissioners, Deschutes County's investment policy was submitted by Wayne Lowry to the Oregon Short Term Fund ("OSTF") Board (the "Board")for review. The OSTF Board's statutory obligation is to "review and comment to the governing body" (ORS 294.135(a))on the written investment policy submitted to the Board. To assist in the policy revision process,the Board developed a model policy laying out the elements that it believes are important in policies. These are also the elements against which submitted policies are reviewed. As part of the local government investment policy review process, resources of the Office of the State Treasurer's staff are provided to assist as needed on policy revisions or development. The Oregon Short Term Fund Board reviewed Deschutes County's investment policy at the OSTF Board meeting on October 10, 2013, and the Board is pleased to inform you that the statutory policy review requirement has been satisfied. During the review,the OSTF Board offered the following comments: • Page 4 of 27, iii: "On"should not be capitalized. • Page 10 of 27, ii: By stating that Investments must have a rating from at least two nationally recognized statistical ratings organizations, Farmer Mac is automatically excluded. Clarification is recommended unless it was intended to exclude Farmer Mac. It was recommended that the language in this section be reworked to achieve clear intent. • Page 2 of 27, II: Fourth line should read,"All funds within the scope of this policy are subject to these statutes and regulations established by the State of Oregon." Should any member of Deschutes County's Board of County Commissioners wish to discuss the policy, please call Tom Lofton at the Office of the State Treasurer. The phone number is (503) 378-4155. Sincerely, Goe Oregon Sh. • m Fund Board Chair (503)943-4810 cc: Alan Unger, Commissioner Tammy Baney, Commissioner Tony DeBone,Commissioner Wayne Lowry, Finance Director Tom Lofton, Oregon State Treasury �,JT ES co L G� ti Deschutes County Finance Department 0' Wayne Lowry, Finance Director 1300 NW Wall St, Suite 203, Bend, OR 97701-1960 P.O. Box 6005, Bend, OR 97708-6005 December 2, 2013 (541)388-6559- Fax(541)749-2909 www.co.deschutes.or.us Board of County Commissioners Tom Anderson, County Administrator 1300 NW Wall Street,Suite 200 Bend,Oregon 97701 Response to Comments from the Oregon Short Term Fund Board The County's draft investment policy was submitted to the Oregon Short Term Fund Board for review in accordance with ORS 294.135(a)at their meeting dated October 10, 2013. The Board reviewed the draft policy and issued a letter to the Commissioners dated November 25, 2013. The letter includes three comments related to the policy draft. The County Finance Department responses are included below: 1. Section V, 3, iii has been corrected. 2. Section X, 1, ii-The draft Investment policy is intended to preclude "Farmer Mac" as it is an unrated agency security and it is on the list of"less appropriate" agency securities for local governments established by the state Treasurers office. No change to policy language. 3. Section II -the recommended correction has been made to the second to the last line. Sincerely Wayne Lowry Finance Director CO G f'fne .< Deschutes County Administrative Policy No.F-10 Effective Date: January 7,2008 Revised Date: June 24,2009 Revised Date: September 20,2012 INVESTMENT POLICY GUIDELINES STATEMENT OF POLICY All Deschutes County investments must be made in accordance with State Law and in accordance with the Deschutes County Investment Policy. Investment policies must be approved by the State of Oregon Short-Term Fund Board. This policy is modeled on the investment policy recommended by the Oregon Short-Term Fund Board and incorporates State Law requirements and restrictions. APPLICABILITY This policy applies to all Deschutes County investments. POLICY AND PROCEDURE The Deschutes County Treasurer is the portfolio manager. It is the policy of Deschutes County to invest public funds in a manner which will provide the maximum security while providing liquidity to meet the daily cash flow demands and receive the highest investment return while conforming to all State Statutes governing the investment of public funds and this Investment Policy. SCOPE:This investment policy applies to activities of Deschutes County with regard to investing the financial assets of all funds for which investment authorization has been given, including but not limited to the following funds: A. General Fund B. Special Revenue Funds C. Capital Project Funds D. Enterprise Funds E. Debt Service Funds F. Internal Service funds G. Trust and Agency Funds Funds held and invested by trustee or fiscal agents are excluded from these rules;however such funds are subject to the regulations established by the State of Oregon. Funds of Deschutes County will be invested in compliance with ORS 294 and other applicable statutes. Investments will be in accordance with this policy and any written administrative procedures. Investment of any tax-exempt borrowing proceeds and any debt service funds will comply with the"arbitrage" restrictions of Section 148 of the Internal Revenue Code of 1986. Funds of other agencies,jurisdictions,district or entities for which the County Treasurer serves as custodian will not be invested without written authorization from their governing body,and the Deschutes Board of County Commissioners. Policy#F-lo,Investment Policy Guidelines Page 1 of 7 OBJECTIVES: Deschutes County's Investment Objectives are: Preservation of capital and the protection of investment principal. Conformance with Federal, State and other legal requirements. Maintenance of sufficient liquidity to meet operating requirements. Diversification to avoid incurring unreasonable risks regarding specific security type or individual financial institutions. Attainment of a market rate of return throughout budgetary and economic cycles. DELEGATION OF AUTHORITY: The County Treasurer is designated as the Investment Officer for Deschutes County and is responsible for investment decisions and activities.The investment officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The administration of the cash management program is handled by the County Treasurer who is responsible to manage the day-to-day operations of the County's investment portfolio,place purchase orders and sell orders with dealers and financial institutions and prepare reports as required. INVESTMENT LIMITATIONS: Specific investment types shall not exceed the percentage of the total investment portfolio indicated below. All securities are also included on the list of"U.S.Government Agency Securities for Local Government Investments under ORS 294.035 and 294.040." This list is maintained by the Office of the Oregon State Treasurer. Securities issued by a single financial institution(Banker's Acceptance and Certificates of Deposit)will be limited to 30%of the total portfolio. SUITABLE AND AUTHORIZED INVESTMENTS The following investments will be permitted by this policy,ORS 294.035 and 294.810: •U.S.Treasury Obligation(bills,notes and bonds) •U.S.Government Agency Securities and Instruments of Government Sponsored Enterprises •Banker's Acceptances(BA's)from qualified institutions • State of Oregon Investment Pool • Certificates of Deposits(CD's) (Subject to ORS 295 collateralization) • Certificate of Deposit Account Registry Services(CDARS) Policy#F-10,Investment Policy Guidelines Page 2 of 7 •Repurchase Agreements • State and Local Government Securities • Corporate Indebtedness PORTFOLIO DIVERSIFICATION Diversification will be sought within the following guidelines with the purpose of reduction of overall portfolio risk. The investments shall be diversified by investment type,issuer and maturity: U.S.Treasury 100% US Government Agencies 75% 50%in any single government sponsored enterprise State of Oregon Investment Pool 100%or the maximum imposed by statute Certificates of Deposit 25%of total portfolio 30%in any single qualified financial institution Banker's Acceptances 25%of total portfolio 30%in any single qualified financial institution Commercial Paper 20%of total portfolio 5%in any one corporation,subsidiaries or affiliates State&Local Government Securities 25%of total portfolio Repurchase Agreements 25%of total portfolio 10%in any single qualified financial institution Corporate Indebtedness 10%of total portfolio Maximum 24 month maturity Note:These limits apply to the total portfolio at the time the Investments are purchased. COMPETITIVE SELECTION OF BIDS OR OFFERS: Before the investment officer invests funds,competitive offers or bids will be sought from at least two institutions, or a decision to invest will be based on data received from at least two institutions. The most favorable offer or bid will be awarded the transaction. MATURITY SCHEDULING: Policy#F-10,Investment Policy Guidelines Page 3 of 7 To the extent possible,the County will attempt to match its investments with anticipated cash flow requirements. No investment security shall have a maturity of more than 24 months at the time of purchase,but such investments are limited to 30%of the total portfolio. The investment portfolio operates on a policy of buying securities and holding them until their specified maturity date,but during certain market conditions when it becomes advantageous,the Portfolio Manager may sell securities prior to their maturity date. SAFEKEEPING AND COLLATERALIZATION: Investment securities purchased by the Portfolio Manager will be in safekeeping with the bank's Investment Division Safekeeping Department. If it is felt necessary to safe keep with a third party,the Trust Department of the bank will be considered to be a third party for the purpose of safekeeping of securities purchased from that bank. Another permissible option would be to use a third party bank to provide safekeeping for all purchased securities. The purchase and sale of all securities will be on a payment versus delivery basis. The custodian shall issue a safekeeping receipt to the Treasurer listing the specific instrument,rate,maturity and other pertinent information. All other repurchase agreements shall require safekeeping and a master repurchase agreement. Deposit-type securities(i.e.certificates of deposit)shall be collateralized through the Collateral Pool Manager as required by ORS 295.015 for any amount exceeding FDIC coverage. Other investments will be held by the custodian as evidenced by safekeeping receipts. QUALIFIED INSTITUTIONS: The investment officer shall maintain a list of all authorized broker/dealers and financial institutions which are approved for investment purposes or investment dealings. Any firm is eligible to make an application to Deschutes County and upon due consideration and approval will be added to the list. Additions or deletions to the list will be made at the Portfolio Manager's discretion. At the request of Deschutes County,the firms performing investment services shall provide their most recent financial statements or Consolidated Report of Condition(call report)for review. Further,there should be in place,proof as to all the necessary credentials and licenses held by employees of the broker/dealers who will have contact with Deschutes County as specified by but not necessarily limited to the National Association of Securities Dealers(NASD),Securities and Exchange Commission(SEC),etc.Deschutes County shall conduct an annual evaluation of each firm's credit worthiness to determine if it should remain on the list. Securities broker/dealers not affiliated with a bank shall be required to have an office located in Oregon and/or be classified as reporting dealers affiliated with the Federal Reserve as primary dealers. PRUDENCE: The standard of prudence to be used by the County Treasurer in the context of managing the overall portfolio shall be the prudent investor rule,which states,"Investments shall be made with judgment and care,under circumstances then prevailing,which persons of prudence,discretion and intelligence exercises in the management of their own affairs,not for speculation,but for investment,considering the probable safety of their capital as well as the probable income to be derived." Policy#F-10,Investment Policy Guidelines Page 4 of INDEMNITY CLAUSE: The County shall defend and indemnify the County Treasurer and staff from personal liability for losses that might occur pursuant to administering this investment policy as long as the County Treasurer and staff exercise prudence in accordance with this policy,and act within the boundaries of this Policy. ETHICS &CONFLICTS OF INTEREST: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program,or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees,officers and their families shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the County. Officers and employees shall,at all times,comply with the State of Oregon Government Standards and Practices code of ethics set forth in ORS 244. PERFORMANCE EVALUATION: The performance of the County's portfolio shall be measured against the performance of the Oregon Local Government Investment pool,and the three-month and twelve-month Treasury Bills. ACCOUNTING METHOD: Deschutes County shall comply with all required legal provisions and Generally Accepted Accounting Principles(GAAP). The accounting principles are those contained in the pronouncements of authoritative bodies including but not necessarily limited to,the American Institute of Certified Public Accountants(AICPA);the Financial Accounting Standards Board(FASB);and the Government Accounting Standards Board(GASB). An investment fee of 5%of the total interest earned on all invested funds will be deducted and credited to the County Finance Internal Service Fund each month. After deducting the investment fee,interest earnings will be credited on the last day of each month to the funds from which the investments were made based on the average daily balance in the fund. INTERNAL CONTROLS The investment officer is responsible for establishing and maintaining an adequate internal structure designed to reasonably protect the assets of the County from loss,theft or misuse. The concept of reasonable assurance recognizes that(1)the cost of a control should not exceed the benefits likely to be derived and(2)the valuation of costs and benefits requires estimates and judgments by management. Accordingly,the investment officer shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: -Control of collusion. Policy#F-10,Investment Policy Guidelines Page 5 of 7 -Separation of transaction authority from accounting and record keeping. -Custodial safekeeping -Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. -Clear delegation of authority to subordinate staff members. -Written confirmation of transactions for investments and wire transfers. -Compliance and oversight with investment parameters including diversification and maximum maturities. REPORTING REQUIREMENTS: The Deschutes County Treasurer will provide a monthly report to the County Commissioners and the County Administrator. This report will include but not necessarily be limited to:portfolio activity, individual securities held at the end of the reporting period,average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks,and investments by maturity date. Additionally, in accordance with Generally Accepted Accounting Principles,investments are reported in the County's Comprehensive Annual Financial Report at market value. REVIEW: This policy shall be reviewed and modified, if appropriate,by the Deschutes County Board of Commissioners or if market changes warrant review. Annual readoption by the reviewing authority is required by ORS 294.135a. In addition an Investment Committee consisting of five members will meet and review any changes to this Policy. This committee will consist of one County Commissioner and four additional members with backgrounds such as a Banker,Security Broker,Controller/Chief Financial Officer,or Government Finance Manager. AUTHORIZED FINANCIAL INSTITUTIONS: BANKS Bank of America—Merrill Lynch Bank of the Cascades Chase Bank Columbia State Bank Home Federal Bank Key Bank PremierWest Bank Sterling Savings Bank South Valley Bank&Trust Policy#F-10,Investment Policy Guidelines Page 6 of 7 Umpqua Bank Union Bank US Bank Wells Fargo OTHER CastleOak Securities,L.P. Oregon Local Government Investment Pool Piper Jaffray RBC Wealth Management Seattle-Northwest Securities Corporation UBS Financial Services Approved by the Deschutes County Board of Commissioners September 24,2012. 5;44. OW? Erik Kropp Interim County Administrator Policy#F-10,Investment Policy Guidelines Page 7 of 7 Deschutes County Health Services (DCHS) Memorandum To: Tom Anderson, County Administrator From: DeAnn Carr, DCHS Behavioral Health Deputy Director Copy: Erik Kropp Scott Johnson Date: November 15, 2013 Subj: Staffing considerations in preparation for Medicaid Expansion For 2014 Medicaid Expansion Pacific Source has estimated a 23% increase in OHP members (5,333)with 50% of the increase occurring within the first quarter(2,666). Deschutes County Health Services, Behavioral Health Division, will need to assure that adequate service capacity exists to meet these increased demands. In addition to efforts to maximize current internal capacity the following actions are considered to be necessary steps: • Ensure adequate walk-in Access Team staffing levels. o Add 1.0 BHS II (QMHP) FTE. Hire as a temporary position (18 months). Use OHP dollars current in DCBH Fund 270 to support this addition. • Ensure adequate service delivery capacity. o Need to add 1.0 BHS II (QMHP) FTE Hire as a temporary position (18 months). Use OHP dollars current in DCBH Fund 270 to support this addition. In addition to Medicaid Expansion challenges, DCBH and community partners continue to struggle will recruitment and retention of child serving Licensed Medical Practitioners (LMP). Current staffing levels are insufficient to meet the level of need. While ongoing recruitment efforts are a priority additional actions are needed. Use of an RN position to support current LMP would increase the amount of LMP time available for direct service and enhance the overall quality of services. Action: add .5 RN FTE (additional $35,900 annually)Additional cost will be absorbed within current Child& Family team medical staff budget allocations G,rJT, t„ p0 001 { Road Department 61150 SE 27th St.•Bend,Oregon 97702 ,�„�' (541)388-6581•FAX(541)388-2719 December 2,2013 U.S. Fish and Wildlife Service, Bend Field Office 63095 Deschutes Market Road, Bend, Oregon 97701 Attn: Nancy Gilbert Jennifer O'Reilly HAND DELIVERED: December 4, 2013 public meeting at the La Pine Senior Center RE: Deschutes County Road Department comments on proposed Oregon Spotted Frog listing(FWS-R1-ES-2013-0013) Ms. Gilbert/Ms. O'Reilly: The purpose of this letter is to provide Deschutes County input into the process associated with the potential designation of the Oregon spotted frog as a threatened species and the designation of critical habitat under the Endangered Species Act. Deschutes County operates and maintains an 833 mile road network within rural Deschutes County. Upon initial geospacial analysis it appears there are approximately 29 locations where a Deschutes County road facility intersects a proposed Oregon spotted frog critical habitat area. The total lineal road length of the crossing area is approximately 2.0 miles with a maximum single segment exposure length of approximately 1,200 feet and a minimum segment length of approximately 20 feet. There are nine Deschutes County bridge facilities within the proposed habitat area. Deschutes County conducts road maintenance and operations with what are generally considered Best Management Practices (BMPs) on facilities within or near riparian areas. Primary operational and maintenance activities include: 1. Pavement repair, overlay,and seal coat activities 2. Road striping and pavement marking 3. Sweeping and brooming 4. Ditch shaping, grading, and cleaning 5. Shoulder rock placement 6. Sign installation and replacement 7. Vegetation management(including shoulder spray with riparian buffer) 8. Bridge and culvert maintenance 9. Bridge replacement 10. Snow removal and anti-icing product application It is our understanding that Section 4d of Limit l0i of the ESA provides an opportunity for various activities, such as those road maintenance activities listed above, to be exempt or limited from ESA take provisions when BMPs are used. Within our industry, we are familiar with the Oregon Department of Transportation's Routine Road Maintenance Water Quality and Habitat Guide (the "bluebook") and other county centric road maintenance manuals as examples of documented BMPs which have achieved compliance with their associated take exemptions for various listed species. If the Oregon spotted frog is listed as threatened, Deschutes County will request adoption of the "take" rule under section 4d of the ESA to provide protection to the road maintenance and operational activities necessary to maintain and operate our 833 mile road network within rural Deschutes County. We understand this may require formal adoption of BMPs or other acknowledged road maintenance manuals. Thank you for the opportunity to provide input into this process. Please do not hesitate to contact me for further discussion or dialogue. 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