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Home My WebLink About2013-12-02 Work Session Minutes Minutes of Board of Commissioners’ Work Session Monday, December 2, 2013 Page 1 of 7 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 2 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 b eing 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 3 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 4 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 5 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. Carr 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. Carr 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 6 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 pro tection. 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. 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: 1 0 p.m. DATED this II~ Dayof~ 2013 for the Deschutes County Board of Commissioners. Alan Unger, Chair T ~2air ATTEST: Anthony DeBone, Commii;sioner ~~ Recording Secretary Minutes of Board of Commissioners' Work Session Monday, December 2,2013 Page 7 of7 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) (e), real property negotiations; ORS 192.660(2) (h), litigation; ORS J92.660(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 o/Commissioners' meeting rooms at 1300 NW Wall St., Bend. unless otherwise indicated. Ifyou 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 caB (541) 388-6571, or send an e-mail to bonnie.bakerriVdeschutes.org. Board of Cou 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 8aney Anthony De80ne 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 ofthe property located at 3705 N. Highway 97. We anticipate having these terms worked out by the end of December 20l3. 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 playa 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 ofCitizens 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 ~thr-- (;;? Tammy Baney, Vice Chair ;Z1J)1~ Anthony DeB one, Commissioner OSWB I 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. I Monthly Meeting with Board of Commissioners Finance Director/Treasurer AGENDA December 2, 2013 (1) Monthly Investment Report (2) ()ctober 2013 Financials r r r " Municipal Debt $ 632,083 0.50% Corporate Notes 9 ,989,873 7.91% Time Certificates 7,216,441 5.72% U . S . Treasuries 0.00% Federal Agencies 6 ,059,600 4.80% Bankers' Acceptances 0.00% LGIP/BOTC 102,372,240 81.07% Total Investments $ 126,270.238 100.00% Total Portfolio: By Investment Types Corporate Time Municipal Debt Notes 7 .9% Certificates 5 .7% Federal Agen cies 4 .8 % LGIP/BOTC 81.1% Investments By County Function General $ 126,270,238 $ Investment Income Fiscal Year 2013-14 Oct-13 I I Y-T-O 55,365 $ 226,080 -- Total Investments $ 126,270,238 Total Investment Income Less Fee : 5% of Invest. Income Investment Income -Net 1$ 55,365 (2 , 768~ 52,597 226,080 p 1,304~ $ 214,776 Yield Percentages ~~.~ BOTC I LGIP ~ 0.51% 0.52% Investments ~ 0.59% 0.61% Average ~ 0.53% 0.53% Category Maximums: U .S . Treasuries 100% "-JLGIP 100% c(; tt Federal Agencies 75% 24 Month Treas . ~ 0.34% Banker's Acceptances 25% L GI P Rate ~ 0.54% Time Certificates 25% 24 Month Corp ~ 0.63% Municipal Debt 25% Commercial Paper 20% Term Maximums: 0-18 Months 100%1- 19 -24 Months 30% Months to Maturity 18 Months 91 % 24 Months 9% 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 Date (33% of Year) FY 2013 FY2014 I %of Actual BudgetActual Budget I Projection I $ Variance Revenues Property Taxes -Current 20,734,019 Property Taxes -Prior 1,108,377 Other General Revenues 2,683,531 Assessor 866,121 County Clerk 1,710,900 BOPTA 16,419 District Attorney 174,794 Tax Office 252,869 Veterans 74,348 Property Management 100,249 Grant Projects 2,000 Total Revenues 27,723,627 Expenditures Assessor 3,439,127 County Clerk 1,299,189 BOPTA 58,401 District Attorney 5,034,333 Financerrax 779,725 Veterans 250,880 Property Management 275,329 Grant Projects 122,139 Non-Departmental 1,221,749 Total Expenditures 12,480,872 Transfers Out 13,930,307 Total Exp &Transfers 26,411,179 Change in Fund Balance 1,312,448 Beginning Fund Balance 9,059,394 Ending Fund Balance $ 10,371,843 2,505,162 12% a) 21,031,062 21,531,062 500,000 373,994 52% 720,000 720,000 1,305,322 67% b) 1,955,900 1,955,900 474,744 58% c) 812,421 902,421 90,000 494,181 35% c) 1,415,487 1,415,487 9,602 63% c) 15,200 17,200 2,000 27,193 15% 184,194 184,194 147,825 71% c) 208,750 226,750 18,000 28,053 40% 70,920 70,920 30,333 33% 91,000 91,000 667 33% 2,000 2,000 5,397,074 20% 26,506,934 27,116,934 610,000 1,162,104 32% 3,687,131 3,687,131 439,239 29% 1,500,045 1,500,045 21,380 28% 76,901 76,901 1,715,516 30% 5,638,777 5,638,777 277,420 33% 846,733 846,733 94,112 31% 299,163 299,163 84,520 33% 258,807 258,807 42,016 32% 129,951 129,951 279,760 20% d) 1,392,993 1,017,290 375,703 4,116,067 30% 13,830,501 13,454,798 375,703 5,053,572 37% 13,615,578 13,615,578 9,169,639 33% 27,446,079 27,070,376 375,703 (3,772,564) (939,145) 46,558 985,703 10,371,843 109% 9,500,000 10,371,843 871,843 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 FY2013 Date (33% of Year) I "10 of $ 1,115,408 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. Actual Revenues Federal Grants - SB #1065-Court Assess. 8,606 Jail Funding HB #2712 101,659 Discovery Fee 8,703 Food Subsidy 24,650 OVA Basic &Diversion 354,583 Inmate/Prisoner Housing 113,760 Contract Payments 90,765 Interest on Investments 6,343 Leases 1,200 Grants -Private 1,729 CFC Interfund Grant 120,595 Interfund Grant -Gen Fund 20,000 Miscellaneous 790 Total Revenues 853,383 Expenditures Personnel Services 4,878,315 Materials and Services 1,086,677 Capital Outlay - Transfers Out 50,400 Total Expenditures 6,015,391 Revenues less Expenditures (5,162,008) Transfers In-General Fund 5,344,523 Change in Fund Balance 182,515 Beginning Fund Balance 995,051 Ending Fund Balance $ 1,177,566 * FY 2014 Contingency-$ 1,012,147 a) Includes $7,090 payment on a FY 2013 grant FY2014 Actual Budget Budget I Projection I $ Variance 7,090 167% a) 4,254 11,715 7,461 2,465 41% 6,000 6,000 9,142 25% 36,568 36,568 1,870 23% 8,300 8,300 7,226 30% 24,000 24,000 -0% b) 364,268 359,149 (5,119) 13,800 11% c) 125,000 125,000 227 0% d) 120,000 5,000 (115,000) 2,335 39% 6,000 6,000 400 33% 1,200 1,200 301 24% 1,250 1,250 -n/a e) 128,041 128,041 5,000 25% 20,000 20,000 104 16% 650 650 49,959 7% 717,490 732,873 15,383 1,599,754 31% 5,109,496 5,109,496 300,896 28% d) 1,085,433 970,433 115,000 -0% 100 100 915 25% 3,660 3,660 1,901,565 31% 6,198,689 6,083,589 115,100 (1,851,605) (5,481,199) (5,350,716) 130,483 1,789,448 33% 5,368,346 5,368,346 (62,157) (112,853) 17,630 130,483 1,177,566 105% 1,125,000 1,177,566 52,566 * $1,012,147 $1,195,196 $ 183,049 Page 2 SHERIFF· Consolidated Statement of Financial Operating Data Through October 31, 2013 FY 2013 Actual Revenues (Funds 701 & 702) Law Enf Dist Countywide 19,512,075 Law Enf Dist Rural 12,228,468 Total Revenues 31,740,543 Expenditures (Fund 255) Sheriff's Services 2,263,061 Civil/Special Units 723,704 Automotive/Communications 1,837,849 Investigations/Evidence 1,425,223 Patrol 8,174,690 Records 685,178 Adult Jail 12,850,417 Court Security 298,060 Emergency Services 185,439 Special Services 1,236,781 Training 481,717 Other Law Enforcement Svcs 667,913 Non-Departmental 85,253 Total Expenditures 30,915,283 Revenues less Expenditures 825,260 DC Comm Syst Reserve 200,000 Transfer to Reserve Funds 200,000 Change in Fund Balance 425,260 Beginning Fund Balance 9,128,533 Ending Fund Balance $9,553,793 * FY 2014 ContingencY-$ 5,284,491 FY 2014 -Year to Date (33% of Year) FY 2014 Actual I Budget Budget I Projection I $ Variance 3,567,987 19% 19,116,763 19,536,988 420,225 2,202,304 18% 12,125,008 12,129,616 4,608 5,770,291 18% 31,241,771 31,666,604 424,833 823,173 34% 2,401,838 2,401,738 100 359,741 32% 1,110,175 1,110,175 660,257 40% a) 1,643,912 1,643,912 493,092 33% 1,472,678 1,472,578 100 2,671,936 31% 8,544,952 8,544,952 238,244 31% 774,452 774,352 100 4,459,892 31% b) 14,384,459 14,384,459 95,773 35% 275,852 275,752 100 78,400 35% 223,273 223,173 100 482,734 32% 1,498,298 1,498,298 147,799 28% 527,979 527,879 100 281,056 36% 779,623 779,523 100 27,234 33% 81,701 81,701 10,819,331 32% 33,719,192 33,718,492 (5,049,040) * (2,477,421 ) (2,051,888) 425,533 -200,000 200,000 -200,000 200,000 (5,049,040) (2,877,421 ) (2,451,888) 425,533 9,553,793 8,161,912 9,553,793 1,391,881 $4,504,753 $5,284,491 $ 7,101,905 $1,817,414 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 700 SHERIFF· Fund 255 Statement of Financial Operating Data Through October 31,2013 FY 2014 -Year to FY 2013 Date {33% of Year} Actual Actual I Budget FY 2014 Budget I Projection I $ Variance 18,708,928 6,736,976 28% 4,082,355 28%12,206,355 30,915,283 10,819,331 28% 2,263,061 823,173 34% 359,741 32%723,704 1,837,849 660,257 40% a} 1,425,223 493,092 33% 8,174,690 2,671,936 31% 685,178 238,244 31% 12,850,417 4,459,892 31% b) 95,773 35%298,060 185,439 78,400 35% 1,236,781 482,734 32% 481,717 147,799 28% 667,913 281,056 36% 85,253 27,234 33% 30,915,283 10,819,331 32% $ . -* 24,478,462 21,161,510 (3,316,952) 14,525,221 12,556,982 {1,968,239) 39,003,683 33,718,492 (5,285,191) 2,401,838 2,401,738 100 1,110,175 1,110,175 1,643,912 1,643,912 1,472,678 1,472,578 100 8,544,952 8,544,952 774,452 774,352 100 14,384,459 14,384,459 275,852 275,752 100 223,273 223,173 100 1,498,298 1,498,298 527,979 527,879 100 779,623 779,523 100 81,701 81,701 33,719,192 33,718,492 $ 5,284,491 $ $ ,5,284,491} Revenues (Fund 255) Law Enf Dist Countywide Law Enf Dist Rural Total Revenues Expenditures (Fund 255) Sheriff's Services Civil/Special Units Automotive/Communications Investigations/Evidence Patrol Records Adult Jail Court Security Emergency Services Special Services Training Other Law Enforcement Svcs Non-Departmental Total Expenditures Revenues less Expenditures * 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 700 Expenditures Sheriffs Services Personnel Materials & Services Capital Outlay Total Sheriffs Services Civil/Special Units Personnel Materials & Services Capital Outlay Total Civil/Special Units Automotive/Communications Personnel Materials & Services Capital Outlay Total Automotive/Communications InvestigationslEvjdence Personnel Materials & Services Capital Outlay Total Investigations/Evidence Patrol Personnel Materials & Services Capital Outlay Total Patrol Records Personnel Materials & Services Capital Outlay Total Records Adult Jail Personnel Materials & Services Capital Outlay Transfer Out -Jail Debt Service Total Adult Jail Court Securitv Personnel Materials & Services Capital Outlay Total Court Security Emergency Services Personnel Materials & Services Capital Outlay Total Emergency Services Special Services Personnel Materials & Services Capital Outlay Total Special Services Training Personnel Materials & Services Capital Outlay Total Training Other Law Enforcement Services Personnel Materials & Services Capital Outlay Total Other Law Enforcement Svcs Non-Departmental Materials & Services Total Non-Departmental Total Expenditures SHERIFF ·Expenditure Detail Statement of Financial Operating Data Through October 31,2013 FY 2014 -Year to FY 2013 Date (33% of Year) Actual Actual I Budget 1,311,042 467,147 33% 952,019 - 356,025 36% 0% 2,263,061 823,173 34% 637,830 338,200 34% 85,874 - 21,542 22% 0% 723,704 359,741 32% 125,620 31% 1,406,033 413,153 528,846 44% 18,663 5,790 16% 1,837,849 660,257 40% 436,113 33% 142,001 1,283,221 56,979 43% -0% 1,425,223 493,092 33% 7,325,801 2,468,920 32% 613,033 193,046 34% 235,856 9,970 4% 8,174,690 2,671,936 31% 224,392 34% 101,717 583,461 13,852 13% -0% 685,178 238,244 31% 3,849,271 32% 1,879,643 10,934,201 581,686 300/. 36,573 28,935 38% -0% 12,850,417 4,459,892 31% 90,682 34% 12,063 285,997 5,091 52% -0% 298,060 95,773 35% 175,729 70,962 36% 9,710 - 7,438 28% 0% 185,439 78,400 35% 1,024,967 433,190 35% 175,717 49,543 23% 36,096 -0% 1,236,781 482,734 32% 114,809 30% 136,300 345,417 - 32,990 23% 0% 481,717 147,799 28% 607,877 250,381 35% 60,035 - 30,675 41% 0% 667,913 281,056 36% 85,253 27,234 33% 85253 27,234 33% FY2014 Budget I Projection I $ Variance 1,411,820 1,411,820 989,918 989,918 100 100 2,401,838 2,401,738 100 1,009,306 1,009,306 95,769 95,769 5,100 5,100 1,110,175 1,110,175 404,407 404,407 1,202,505 1,202,505 37,000 37,000 1,643,912 1,643,912 1,338,593 1,338,593 133,985 133,985 100 100 1,472,678 1,472,578 100 7,723,459 7,723,459 563,921 563,921 257,572 257,572 8,544,952 8,544,952 665,327 665,327 109,025 109,025 100 100 774,452 774,352 100 12,060,079 11,960,079 100,000 1,947,790 2,047,790 POO,OOO) 76,590 76,590 300,000 300,000 14,384,459 14,384,459 265,966 265.966 9,786 9.786 100 100 275,852 275,752 100 196,825 196,825 26,348 26,348 100 100 223,273 223,173 100 1.251,196 1,251,196 211,502 211,502 35,600 35,600 1,498,298 1,498,298 384,725 384,725 143,154 143,154 100 100 527,979 527,879 100 705,392 705,392 74,131 74,131 100 100 779,623 779,523 100 81.701 81.701 81,701 81,701 $10,819,331 32% $33,719,192 $33,718,492 $ 700 Page 4 $ 30,915,283 SHERIFF 701 Statement of Financial Operating Data Through October 31, 2013 FY 2014 -Year to Date FY 2013 (33% of Year) Actual Actual I Budget FY 2014 Budget 1 Projection I $ Variance Revenues Tax Revenues -Current Tax Revenues -Prior Federal Grants State Grant Jail Funding HB 2712 Jail Funding HB 3194 Transp. of State Wards SB 1145 Prisoner Housing Des. Cty Gen Fund Grant Des. Cty Video lottery Grant Grants Des Cty Court Security Des Cty Juvenile Contract Title III Reimbursement Inmate Commissary Fees Work Center Work Crews Concealed Handgun Classes Inmate Telephone Fee Soc Sec Incentive-Fed Medical Services Reimb Sheriff Fees Interest Donations-"Shop with a Cop" Miscellaneous Total Operating Revenues EXPENDITURES & TRANSFE DC Sheriff's Office DC Comm Systems Reserve Transfer to Reserve Fund Total Expenditures Change in Fund Balance Beginning Fund Balance Ending Fund Balance 15,812,544 2,032,288 817,322 274,788 24,510 - 158,199 22,946 101,659 9,142 -107,806 3,289 1,215 1,479,991 816,315 284,189 49,638 -- 5,000 5,000 20,640 - 116,646 - 12,051 3,962 39,916 - 29,756 7,953 53,237 31,671 8,050 550 97,403 21,599 14,600 4,200 20,461 2,970 314,668 121,597 44,629 8,162 31,717 37,218 21,599 8,968 19,512,075 3,567,987 RS 18,708,928 6,736,976 80,000 - 100,000 - 18,888,928 I 6,736,976 623,147 (3,168,989) 5,883,963 6,507,110 $ 6,507,110 $ 3,338,121 13% 54% 0% 20% 20% n/a 24% 52% 62% 0% 100% n/a 0% 40% n/a 53% 63% 16% 27% 84% 23% 49% 26% 72% 31% a) b) c) d) e) f) 16,103,377 507,902 25,500 115,524 46,143 5,000 1,584,991 80,000 4,762 5,000 99,318 10,000 15,000 50,000 3,500 80,000 5,000 13,000 250,000 32,000 51,897 28,849 16,378,377 275,000 507,902 12,649 (12,851) 115,524 46,143 107,806 107,806 5,000 1,628,947 43,956 140,000 60,000 4,762 5,000 45,632 (53,686) 10,000 15,000 50,000 3,500 80,000 5,000 13,000 250,000 32,000 51,897 28,849 190/0 19,116,763 19,536,988 420,225 28% 0% 0% * 24,478,462 80,000 100,000 21,161,510 80,000 100,000 3,316,952 27% 24,658,462 21,341,510 3,316,952 (5,541,699) 5,541,699 $ (1,804,522) 6,507,110 $4,702,588 3,737,177 965,411 $4,702,588 * Payment to Sheriff's 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 5B395 (repeat DUll) 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 2013 Actual Revenues Tax Revenues -Current 7,698,340 Tax Revenues -Prior 404,894 Federal Grants 53,818 Federal Grants-BlM 20,881 US Forest Service 78,750 Bureau of Reclamation 40,580 State Grant 274,465 SB #1065 Court Assessment 8,606 Marine Board License Fee 143,724 I FY 2014 -Year to Date (33% of Year) BudgetActual FY 2014 Budget I Projection I $ Variance 972,275 12% a) 7,839,932 7,839,932 135,049 51% 263,858 263,858 11,583 80% 14,500 14,500 -0% b) 25,000 25,000 19,688 26% 76,500 76,500 -0% b) 26,000 26,000 10,392 6% 169,000 169,000 2,465 4% 55,000 55,000 -0% b) 150,000 150,000 I Des Cty General Fund Grant Des Cty Transient Room Tax 136,735 -0% c) 375,703 2,513,265 758,099 33% c) 2,274,297 -(375,703) 2,650,000 375,703 Asset Forfeiture 11,760 City of Sisters 468,060 Des Cty COD Contract 54,366 Des Cty Solid Waste Contr 54,366 School Districts 46,212 Claims Reimbursement 860 Seat Belt Program 5,390 Sheriff Fees 9,617 Court Fines & Fees 120,247 Interest 20,654 Grants-Private 6,500 Donations 11,650 Miscellaneous 44,728 Total Revenues 12,228,468 EXPENDITURES & TRANSFERS DC Sheriff's Office 12,206,355 DC Com m Systems Reserve 120,000 Transfer to Reserve Fund 100,000 Total Expenditures 12,426,355 4,082,355 (1,880,052) (2,620,213) (647,366) 1,972,847Change in Fund Balance (197,887) 3,046,683 2,620,213 3,046,683 426,470Beginning Fund Balance 3,244,571 -nfa - - 162,226 33% 486,678 486,678 19,757 33% 59,270 59,270 19,757 33% 59,270 59,270 -0% b) 40,000 40,000 108 nfa -108 108 2,590 26% 10,000 10,000 3,516 35% 10,000 10,000 44,564 36% 125,000 125,000 3,239 27% 12,000 12,000 -nfa - - 4,500 nfa -4,500 4,500 32,497 61% 53,000 53,000 2,202,304 18% 12,125,008 12,129,616 4,608 4,082,355 28% * 14,525,221 12,556,982 1,968,239 -0% 120,000 120,000 -0% 100,000 100,000 28% 14,745,221 12,776,982 1,968,239 Ending Fund Balance $ 3,046,683 $1,166,632 $ -$2,399,317 $2,399,317 ., Payment to Sheriff's 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) Actual Actual Budget '70 orI 68 -n/a 630 8,370 209% 212.500 -0% 2,700,025 894,951 34% 38,154 2,435 6% 248,176 7,806 5% 578,042 220,092 36% 519,121 148,873 27% 40,214 -0% 95,224 -0% 174,624 6.391 4% 214.544 83.984 46% 95,108 37.179 31% 32,475 12,155 30% 112,235 28,605 29% 755,693 56,754 8% 6,262 2.085 35% 19.366 43,955 2442% 162,757 26.296 15% 3,425 6,008,643 1.924 137% 1,581,855 27% 6,344,766 2,106.713 32% 2,036,535 559,223 27% --0% 157,200 8,538,501 (2,529,858) 39,330 25% 2,705,266 30% (1,123,410) 2.349.357 900,492 33% 62,136 8.250 25% 65,100 2,476,593 (53.265) 16.275 25% 925,017 33% (198.393) $ 1,273,934 1.327,199 1,273,934 92% $ 1,075,540 FY2014 Budget I Projection I$ Variance Revenues Medicare Reimbursement Federal Grant 4,000 86,085 82,085 Federal Grant (ARRA) 85.000 85,000 State Grant a) 2.655,897 2,754,434 98,537 Child Dev & Rehab Center b) 39.609 39.609 State Miscellaneous b) 163,310 83,110 (80,200) OMAP 612,400 747,400 135,000 Family Planning Exp Proj 550,000 550,000 Grants (Intergovern & Pvt) 164,923 164,923 Environmental Health-Water c) 94,200 (94,200) Contract Payments b) 151,316 141,266 (10.050) Patient Insurance Fees 184,200 184,200 Health Dept/Patient Fees 119,400 119,400 Vital Records-Birth 41,000 41,000 Vital Records-Death 100,000 100,000 Environmental Health-Lic Fac d) 753,750 753,750 Interest on Investments 6,000 6,000 Donations 1,800 43.955 42,155 Interfund Contract b)e) 180,426 91,691 (88,735) Miscellaneous 1,400 1,924 524 Total Revenues 5,908,631 5,993,747 85,116 Expenditures Personnel Services 6,665,719 6.665,719 Materials and Services 2,070,058 2,070,058 Capital Outlay 100 100 Transfers Out 157,320 157,320 Total Expenditures 8,893,197 8,893,091 100 (2,984,566) (2,899,350) 85,216Revenues less Expenditures Transfers In-General Fund 2,701,475 2,701,475 Transfers In-PH Res Fund 33,000 33.000 Transfers In-Gen. Fund Other 65,100 65,100 Total Transfers In 2,199,515 2,199,515 Change in Fund Balance (184.991 ) (99,775) 85,216 Beginning Fund Balance 1,385,592 1,273,934 {111,658} Ending Fund Balance * $1,200,601 $ 1,114,159 $ (26,442) .. FY 2014 Contingency-$1,2oo,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 Page 7 e) Interfund contract reduced due to elimination of FTE. BEHAVIORAL HEALTH Statement of Financial Operating Data Through October 31, 2013 Actual FY 2013 FY 2014 -Year to Date (33% of Year)I "/oot Revenues Marriage Licenses 5,650 Divorce Filing Fees 122,971 Federal Grants 252,331 Federal Grant (ARRA) 63,750 State Grants 7,552,648 State Miscellaneous 62,361 Adult Mental Health Initiative 229,038 Title 19 121,876 Liquor Revenue 144,595 School Districts 23,317 Patient Fees 110,491 Interest on Investments 19,900 Rentals 16,625 Administrative Fee 5,224,877 Interfund Contract-Gen Fund 127,000 Miscellaneous 17,482 Total Revenues 14,094,911 Expenditures Personnel Services 10,916,057 Materials and Services 5,970,799 Capital Outlay 26,965 Transfers Out 204,000 Total Expenditures 17,117,821 Revenues less Expenditures (3,022,909) Transfers In-General Fund 1,307,787 Transfers In-OHP-CDO 484,494 Transfers In-Acute Care Svcs 264,631 Transfers In-ABHA 524,039 Total Transfers In 2,580,951 556,964 Change in Fund Balance (441,958) Beginning Fund Balance 3,113,095 Ending Fund Balance $2,671,137 Actual Budget FY 2014 Budget I Projection I $ Variance 3,045 47% 6,500 6,500 42,826 30% 140,600 140,600 36,617 15% a) 252,349 204,849 (47,500) 63,750 250% 25,500 63,750 38,250 2,503,291 31% b) 8,061,713 7,309,892 (751,821 ) 10,310 17% 61,860 20,620 (41,240) 114,086 50% 230,000 230,000 67,697 47% 144,246 144,246 25,486 19% 137,000 137,000 -n/a 71,900 45% 158,082 158,082 6,133 30% 20,500 20,500 7,750 42% 18,500 18,500 2,732,881 33% 8,318,643 8,318,643 -0% c) 127,000 127,000 17,593 17593% 100 20,000 19,900 5,703,364 34% 17,702,593 16,920,182 (782,411) 3,978,674 30% 13,171,075 13,171,075 1,677,230 24% d) 6,896,820 6,440,434 456,386 -0% 10,000 10,000 51,225 25% 204,900 204,900 5,707,129 28% 20,282,795 19.826,409 456,386 (3,765) (2,580,202) (2,906.227) (326,025) 459,100 33% 1,377,302 1,377,302 -n/a 97,864 33% 293,593 293,593 -n/a 33% 1,670,895 1,670,895 553,199 (909,307) (1,235,332) (326,025) 2,671,137 77% 3,461,651 2,671,137 F90,514~ $3,224,336 * $2,552,344 $1,435,805 $ l1,116,5391 * 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 2013 Actual Revenues Admin-Operations 31,848 Admin-GIS 778 Admin-Code Enforcement 239,264 Building Safety 1,563,938 Electrical 336,210 Contract Services 166,428 Env Health-On Site Prog 340,564 Planning-Current 798,221 Planning-Long Range 348,545 Total Revenues 3,825,796 Expenditures Admin-Operations 1,311,935 Admin-GIS 117,502 Admin-Code Enforcement 208,357 Building Safety 599,764 Electrical 200,596 Contract Services 163,822 Env Health-On Site Pgm 160,291 Planning-Current 581,155 Planning-Long Range 356,807 Transfers Out (DIS Fund) 179,155 Total Expenditures 3,879,383 Revenues less Expenditures (53,586) Transfers In General Fund -Gen Ops 854,872 General Fund -UR Planning 495,360 A&T Reserve (DIS assistance) 89,577 Other Total Transfers In 1,439,809 Change in Fund Balance 1,386,223 Beginning Fund Balance 192,482 Ending Fund Balance $1,578,705 * FY 2014 Contingency-$ 384,103 FY 2014 -Year to Date (33% of Year) I V/o ot Actual Budget 15,333 27% 498 33% a) 100,268 56% 700,944 56% 158,019 56% 103,940 51% b) 172,900 60% 295,579 47% 151,856 55% Budget 56,243 1,500 178,000 1,247,359 283,073 204,800 288,484 634,602 274,527 FY2014 I Projection I $ Variance 23,000 (33,243) 3,500 2,000 243,860 65,860 1,700,882 453,523 370,446 87,373 225,760 20,960 390,223 101,739 761,522 126,920 329,432 54,905 1,699,336 54% 3,168,588 4,048,625 880,037 544,406 34% c) 1,610,396 1,617,896 (7,500) 40,993 33% 124,246 124,246 92,341 34% 275,515 275,515 220,435 33% d) 672,796 757,796 (85,000) 73,634 34% 218,300 218,300 73,859 45% e) 162,658 187,057 (24,399) 62,977 37% 171,529 171,529 212,163 32% 665,901 665,901 113,043 25% 450,498 450,498 -0% 179,035 179,035 1,433,850 32% 4,530,874 4,647,773 (116,899) 265,486 (1,362,286) (599,148) 996,936 -0% f) 465,121 (465,121) 165,120 33% 495,360 495,360 -0% f) 89.518 (89,518) -0% 100 (100~ 165,120 16% 1,050,099 495,360 (554,739~ 430,606 (312,187) (103,788) 208,399 1,578,705 227% 696,290 1,578,705 882,415 $2,009,311 * $ 384,103 $1,474,917 $1,090,814 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 2013 Actual Revenues Federal Grant (ARRA) 7,335 Mineral Lease Royalties 140,591 Forest Receipts 1,265,279 Federal -PIL T Payment - State Miscellaneous 542,290 Motor Vehicle Revenue 10,495,426 City of Bend 45,486 City of Redmond 315,525 City of Sisters 1,861 City of La Pine 10,000 Interest on Investments 32,342 Interfund Contract 526,110 Equipment Repairs 255,369 Vehicle Repairs 82,542 Vegetation Management 49,503 Forester 24,628 Other Inter-fund Services 30,387 Inter-Fund Sales -Fuel 623,074 Sale of Equip & Material 287,313 Miscellaneous 35,018 Total Revenues 14,770,079 Expenditures Personnel Services 5,303,241 Materials and Services 7,277,398 Capital Outlay 67,987 Transfers Out 275,000 Total Expenditures 12,923,627 Revenues less Expenditures 1,846,452 Trans In -Solid Waste 276,272 Trans In -Transp SOC - Trans In-Road Imp Res - Total Transfers In 276,272 Change in Fund Balance 2,122,724 Beginning Fund Balance 4,723,852 Ending Fund Balance $ 6,846,576 FY 2014 -Year to Date (33% of Year) I %of Actual Budget FY 2014 Budget I Projection I $ Variance -nfa 12,302 9% 140,000 140,000 -0% a) 356,270 356,270 1,064,365 nfa b) 1,064,365 1,064,365 -0% 773,452 773,452 3,774,335 36% 10,554,500 10,554,500 39,677 13% c) 310,000 310,000 27,482 7% c) 370,000 370,000 84,691 847% c) 10,000 100,000 90,000 -0% c) 10,000 10,000 12,949 72% 18,000 18,000 -0% d) 562,000 562,000 54,389 25% 220,000 220,000 -0% 90,000 90,000 -nfa d) -0% d) 1,500 1,500 12,237 98% 12,500 12,500 155,749 28% 550,000 550,000 9,594 4% 270,000 270,000 29,282 126% e) 23,200 43,200 20,000 5,277,055 37% 14,271,422 15,445,787 1,174,365 1,767,537 33% 5,385,717 5,385,717 3,404,589 33% 10,306,609 10,306,609 -0% 2,882,108 2,882,108 -0% 450,000 450,000 5,172,126 27% 19,024,434 19,024,434 104,929 (4,753,012) (3,578,647) 1,174,365 70,537 - - 25% d) 0% 0% 282,148 400,000 1,000 282,148 400,000 1,000 70,537 10% 683,148 683,148 175,466 (4,069,864) (2,895,499) 1,174,365 6,846,576 114% 6,014,368 6,846,576 832,208 $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 2013 Actual Revenues DOC Measure 57 219,240 State Miscellaneous 4,301 Alternate Incarceration State Subsidy 22,329 SB 1145 2,748,555 Probation Work Crew Fees 14,136 Claims Reimbursement Miscellaneous 4,648 Electronic Monitoring Fee 177,947 Probation Superv. Fees 189,330 Interest on Investments 5,743 Interfund -Sheriff 50,000 Sale of Equipment 250 Crime Prevention Grant 50,000 CFC-Domestic Violence 63,906 Total Revenues 3,550,384 Expenditures Personnel Services 2,956,034 Materials and Services 912,384 Capital Outlay - Total Expenditures 3,868,418 Revenues less Expenditures (318,034) Transfers In-General Fund 435,328 Change in Fund Balance 117,294 Beginning Fund Balance 630,226 Ending Fund Balance $ 747,520 * FY 2014 ContingencY-$ 610,647 a) M57 contract finalized waiting for payment FY 2014 -Year to Date (33% of Year) FY 2014 I 'root Actual Budget Budget I Projection I $ Variance -0% a) 219,240 219,240 -0% b) 4,301 4,301 7,408 49% c) 15,000 15,000 7,197 52% 13,826 13,826 1,516,014 51% 2,951,504 2,951,504 1,987 15% 13,376 13,376 6,997 nfa d) 6,997 6,997 1,474 33% 4,500 4,500 69,159 44% e) 156,000 207,477 51,477 61,097 35% 175,000 175,000 2,003 33% 6,000 6,000 16,667 33% 50,000 50,000 -nfa 12,500 25% f) 50,000 50,000 17,560 24% f) 73,938 73,938 1,720,063 46% 3,732,685 3,791,159 58,474 1,063,455 327,870 - 32% 34% 0% e) 3,326,077 955,003 100 3,326,077 1,005,878 (50,875) 100 1,391,325 32% 4,281,180 4,331,955 (50,775) 328,738 (548,495) (540,796) 7,699 150,396 33% 451,189 451,189 479,134 (97,306) (89,607) 7,699 747,520 106% 707,953 747,520 39,567 $1,226,653 * $ 610,647 $ 657,913 $ 47,266 b) Payment usually not received until 3rd quarter c) Utilization of AlP 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 Date (33% of Year)FY2013 I %of Actual BudgetActual FY 2014 Budget I Projection I $ Variance Revenues Federal Grants Title IV -Family Sup/Pres HealthyStart Medicaid Youth Investment State Prevention Funds HealthyStart /R-S-G OCCF Grant Charges for Svcs-Misc Program Fees Court Fines & Fees Interest on Investments Donations Interfund Grants Total Revenues Expenditures Personnel Services Materials and Services Total Expenditures Revenues less Expenditures Transfers In General Fund General Fund -Other Total Transfers In Change in Fund Balance Beginning Fund Balance Ending Fund Balance 63,280 16% a) 402,044 292,513 (109,531)252,020 -0% 19,767 21,994 2,22739,533 -0% a) 30,000 80,000 50,00080,557 -nfa a) 125,048 125,048196,053 65,270 -nfa 219,950 -0% a) 119,539 210,869 91,330 -0% a) 89,475 144,960 55,485392,440 50 3% 2,000 2,0005,148 2,670 nfa 6,060 6,0605,645 25,695 34% 75,034 77,086 2,05273,959 951 95% 1,000 1,0003,659 -nfa13 -0% a) 350,375 329,624 (20,751~358,343 92,647 9% 1,089,234 1,291,154 201,9201,692,590 570,985 178,558 31% 573,849 573,849 1,424,002 211,231 19% a) 1,093,135 1,355,362 (262,227~ 1,994,987 389,789 23% 1,666,984 1,929,211 (262,227) (302,397) (297,142) (577,750) (638,057) (60,307) 275,984 92,912 33% 278,739 278,739 -22,338 25% 89,350 89,350 115,250 31% 368,089 368,089275,984 (181,893) (209,661) (269,968) (60,307)(26,413) 548,572 146% 375,704 548,572 172,868574,985 $ 366,680 " $ 166,043 $ 278,604 $ 112,561$ 548,572 " 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 I % of Actual Actual Budget Operating Revenues Miscellaneous 19,127 6,649 30% Franchise 3% Fees 209,076 11,819 6% a) Commercial Disp. Fees 971,213 368,490 39% Private Disposal Fees 1,376,005 574,779 44% Franchise Disposal Fees 3,980,498 1,484,428 36% Yard Debris 107,801 41,839 49% b) Special Waste 73,568 24,342 97% c) Interest 8,118 3,341 42% Leases 10,801 4,500 42% Recyclables 47,033 17,047 38% Miscellaneous 3,131 -nfa Total Operating Revenues 6,806,370 2,537,234 38% Operating Expenditures Personnel Services 1,651,419 597,286 32% Materials and Services 2,808,337 901,527 27% Debt Service 946,711 -0% d) Capital Outlay 76,335 23,666 43% e) Total Operating Expenditures 5,482,802 1,522,479 25% Operating Rev less Exp 1,323,569 1,014,755 Transfers Out Road 276,272 70,537 25% f) Capital Reserve 630,000 278,750 51% g) Total Transfers Out 906,272 349,287 42% Change in Fund Balance 417,297 2,187,947 Beginning Fund Balance 807,470 1,224,767 148% Ending Fund Balance $1,224,767 $3,412,714 * * FY 2014 ContingencY-$ 588,009 a) Due April 15, 2014 b) Seasonal FY 2014 -Year to FY 2013 Date (33% of Year) 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 FY 2014 Budget I Projection I$ Variance 22,000 22,000 200,000 200,000 954,100 954,100 1,309,350 1,309,350 4,095,525 4,095,525 85,000 85,000 25,000 25,000 8,000 8,000 10,801 10,801 45,000 45,000 6,754,776 6,754,776 1,868,124 1,868,124 3,311,993 3,311,993 930,157 930,157 55,000 55,000 6,165,274 6,165,274 589,502 589,502 282,148 282,148 545,000 545,000 827,148 827,148 (237,646) (237,646) 825,655 1,224,767 399,112 $ 588,009 $ 987,121 $399,112 Page 13 RISK MANAGEMENT Statement of Financial Operating Data Through October 31,2013 Revenues Inter-fund Charges: General Liability FY 2013 FY 2014 -Year to Date (33% of Year) Actual Actual Budget I '¥oof 262,333 90,941 33% 313,480 108,842 33% 173,635 54,717 33% 1,448,553 504,063 33% 254,165 103,398 33% 34,401 705 2% 1,300 245 11% 76 14 18% 23,060 4,230 30% 12,226 2,523,228 4,377 36% 871,531 33% 382,659 121,793 50,919 14,455 85,751 1,025 148,035 148,589 8,790 113 3,290 2,741 200 679,645 159,171 2,000 290,717 73% 166,668 54,449 213,620 366 40,463 207,131 83% 205 16,030 1,377 54,919 71,316 367,051 10,877 12,459 10% 142,755 141,960 103,107 36,000 18,857 46,366 591,376 137,082 1,693,039 12,738 277,457 35% 55,103 28% 842,867 48% 308,508 98,243 29% 131,414 2,132,961 46,622 24% 987,732 43% 390,267 (116,201) 2,240,791 2,631,057 $2,631,057 $2,514,857 272,823 272,823 Property Damage 326,526 326,526 Vehicle 164,150 164,150 Workers' Compensation 1,512,188 1,512,188 Unemployment 310,203 310,203 Claims Reimb-Gen Liab/Property 40,000 40,000 Process Fee-Events/Parades 2,300 2,300 Miscellaneous 80 80 Skid Car Training 14,000 14,000 Interest on Investments 12,050 12,050 TOTAL REVENUES 2,654,320 2,654,320 Direct Insurance Costs: GENERAL LIABILITY Settlement / Benefit Defense Professional Service Insurance Loss Prevention Miscellaneous Repair / Replacement Total General Liability 400,000 450,000 (50,000) PROPERTY DAMAGE Insurance Repair / Replacement Total Property Damage 250,000 270,000 (20,000) VEHICLE Insurance Loss Prevention Repair / Replacement Total Vehicle 120,000 100,000 20,000 WORKERS' COMPENSATION Settlement / Benefit Insurance Loss Prevention Miscellaneous Total Workers' Compensation 800,000 700,000 100,000 200,000 180,000 20,000 Total Direct Insurance Costs UNEMPLOYMENT -Settlement/Benefits 1,770,000 1,700,000 70,000 Insurance Administration: Personnel Services 333,327 333,327 Materials & Srvc, Capital Out. &Tranfs. 197,193 197,093 Total Expenditures 2,300,520 2,230,420 70,100 353,800 423,900 70,100 Beginning Fund Balance Change in Fund Balance 2,517,479 2,631,057 113,578 Ending Fund Balance * $ 2,871,279 $ 3,054,957 $ 183,678 FY2014 Budget I Projection I $ Variance * FY 2014 Contingency-$ 2,871,279 Page 14 100 DESCHUTES COUNTY 9-1-1 Statement of Financial Operating Data Through October 31, 2013 FY 2014 -Year to Date FY 2013 (33% of Year)I Ulo or FY 2014 Actual Budget Budget I PrOjection I $ Variance 761,805 13% a) 5,947,600 6,137,600 190,000 106.119 48% 219.007 219.007 -0% b) 200.000 200.000 11,706 33% 36,000 36,000 -0% c) 750,000 750.000 -0% 30,000 30,000 684 2% 30,000 30,000 38,879 72% 54,000 54,000 -0% d) 256.791 256.791 -0% 137,000 137,000 6.666 74% 9,000 9,000 - nfa 16.608 27% 60,600 60,600 942,467 12% 7,729,998 7,919,998 190,000 1,541,417 35% 4,432,356 4,432,356 616.394 29% 2,132,476 2,132,476 -0% e) 350,000 350,000 2,157,811 31% 6,914,832 6,914,832 (1,215,345) 815,166 1,005,166 190,000 - 0% 7,800,000 7,800,000 (1.215.345) (6,984,834) (6,794,834 ) 190,000 10,398.030 106% 9,800,000 10,398,030 598,030 9,182,686 * $2,815,166 $3,603,196 $ 788,030$ 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 Actual Revenues Property Taxes -Current 6.323.533 Property Taxes -Prior 319,349 Federal Grants 46,514 State Reimbursement 35,066 Telephone User Tax 767,453 Data Network Reimb. 64,247 Jefferson County 30,755 User Fee 69,012 Police RMS User Fees 229,103 Contract Payments 11,885 Miscellaneous 10.084 Claims Reimbursement 46,760 Interest 54,324 Total Revenues 8,008,083 Expenditures Personnel Services 3,982,162 Materials and Services 1.929,460 Capital Outlay 81.515 Total Expenditures 5,993,138 Revenues less Expenditures 2,014,945 Transfers Out -Reserve Fund 500,000 Change in Fund Balance 1.514.945 Beginning Fund Balance 8.883,086 Ending Fund Balance $ 10,398,030 * FY 2014 Contingency-$ 2,815,166 a) Current year taxes due November, February and May Page 15 Health Benefits Trust Statement of Financial Operating Data Through October 31,2013 FY 2014 -Year to FY2013 Date (33% of Year) Actual Actual %of Budget FY2014 % change-FY 2014 projection over FY2013 Budget Projection $ Valiance 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 I 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 nla 1,425 1,425 Miscellaneous 1,240 50 nla 50 SO 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-DentallVision 1,835,199 534,650 29.3% a 1,825,442 1,803,978 21,464 -1.7% Claims Refunds (131,375) (25,211) nla (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 50,641 17,043 31.0% 55,000 55,000 8.2% Health Impact 52,224 4.327 7.9% 55,000 4,327 SO,673 -91.7% Other -Administration 101,616 11,784 19.6% 60,162 60,162 -40.8% Other -Wenness 49,996 39,867 52.0% 76,739 156,000 F9,261~ 212.0% Admin & Wenness 15,762,814 4,700,786 28.7% 16,378,916 15,497,898 861,018 -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% 118001880 1.8001880 -4.1% Total Expenditures 18,723,746 5,533,526 28.8% 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 $ 11,967822 $12,388,612 . $ 10,297,682 $11 1463,552 $1,185,870 1% of Exp covered by Rev 86.2% 107.6% 92.8% 97.4%1 Page 16 a) Projection based on twelve-month rolling average b) YTD includes October, which is estimated based on September actual • FY 2014 Contingency-$ 10,297,682 FAIR AND EXPO CENTER Statement of Financial Operating Data Through October 31, 2013 Revenues Miscellaneous Vending Machines Telephone Fees -Events Special Events Revenues Interest Storage Camping at F & E Horse Stall Rental Concession % -Food Rights (Signage, etc.) Grants Interfund Rentals Annual County Fair (net) Interfund Contract Total Revenues Expenditures: Personnel Services Materials and Services Debt Service Capital Outlay Total Expenditures Revenues less Expenditures Transfers In: General Fund Room Tax -6% (Fund 160) Room Tax - 1 % (Fund 170) Fair & Expo Reserve Total Transfers In Change in Fund Balance Beginning Fund Balance Ending Fund Balance * FY 2014 Contingency-$234,613 FY 2014 -Year to FY2013 Date (33% of Year) %of Actual Actual Budget $ 4,102 $ 3,073 61.5% - -0.0% 255 140 n/a 383,339 132,068 33.4% 76 313 n/a 35,283 8,555 15.8% 16,700 25 0.2% 48,036 1,635 5.5% 139,006 19,434 12.8% 85,338 6,000 7.5% --n/a a) 2,400 800 33.3% 245,000 205,000 82.0% b) 45,000 -n/a 1,004,534 377,043 38.4% 821,293 302,286 34.1% 580,396 224,204 46.4% c) 114,117 -0.0% 9,000 -0.0% a) 1,524,806 526,490 35.5% (520,272) (149,447) 320,000 124,728 33.3% 25,744 8,580 33.3% 82,800 63,052 33.3% 50,000 25,000 25.0% 478,544 221,360 32.1% (41,728) 71,913 35,055 (6,673) $ (6,673) $ 65,240 FY 2014 Budget PrOjection $ Variance $ 5,000 $ 5,000 $ 1,500 1,500 140 395,000 395,000 313 54,000 54,000 11,000 11,000 30,000 30,000 152,000 152,000 80,000 80,000 180,000 2,400 2,400 2SO,000 205,000 980,900 1,116,353 887,593 887,593 483,533 523,533 112,974 112,974 100 180,000 1,484,200 1,704,100 (503,300) (587,747) 374,186 374,186 25,744 25,744 189,156 189,156 100,000 100,000 689,086 689,086 185,786 101,339 48,827 (6,673} $ 234,613 $ 94,665 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 140 313 180,000 (45,000) 135,453 (40,000) {179,900) (219,900) (84,447) (84,447) {55,SOO} $ ,139,9481 Page 17 JUSTICE COURT Statement of Financial Operating Data Through October 31,2013 Revenues Court Fines & Fees State Miscellaneous Interest on Investments Total Revenues Expenditures Personnel Services Materials and Services Total Expenditures Revenues less Expenditures Transfers In-General Fund Change in Fund Balance Beginning Fund Balance Ending Fund Balance "FY 2014 Contingency-$ 52,866 $ Variance Actual BudgetActual 100,910 24% b)c}a) 357,920 -0%- 796 256 28% 101,166 24%358,716 365,245 137,900 31% 166,294 49,842 26% 187,741 30%531,539 (172,823) (86,576) a) 221,716 46,940 33% 48,893 (39,636) 104,925 153,818 124% 29,577 $ 114,182 " $ 52,866 $ 82,443 $ 29,577$ 153,818 FY 2014 -Year to FY 2013 Date (33% of Year)I V/o OT FY 2014 Budget I Projection I 422,500 422,500 600 600 900 900 424,000 424,000 445,984 445,984 190,210 190,210 636,194 636,194 (212,194) (212,194) 140,819 140,819 (71,375) (71,375) 124,241 153,818 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 Deschutes County Jail Project (Fund 456) Phase 11-Beginning July 1, 2012 Through October 31,2013 Project Budget (Note 1) Actual (Through October31, 2013) Committed Projected Total (Actual + Committed + Projected) Variance l Resources Interest $ 26,157 $ 18,590 $ $ 7,567 $ 26,157 I 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 I 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 Total Resources 11.061,096 11,063,011 1,561 11,010,571 Expenditures Architect 820,000 707,788 106,612 5,600 820,000 Engineering 1,408 7,408 Environmental 593 593 Surveying 500 500 Consulting 35,000 390 34,610 35,000 Building & Grounds 9,127 9,127 Fees & Permits, SDCs (water & sewer) 310,000 273,580 36,420 310,000 Insurance 40,000 7,938 7,938 Internal Service Fund Charges 33,700 12,589 21,111 33,700 Miscellaneous Administrative 30,000 1,824 22,176 30,000 FF & E (Storage System) 40,000 40,000 40,000 Construction -Expansion & Remodel 9,458,396 1,040,009 8.553,261 9,593,276 Construction Contingency 300,000 183,036 183,036 Total Expenditures 11,061,096 2,061,145 8,680,991 321,842 11,010,571 Net $ $8,995,266 $(8,680,991) $(314,215) $ Note 1: The project includes the Jail expansion and a remodel for the Medical Unit $ 3,481 3,481 (7,408) (593) (500) (9,127) 32,062 (134.880) 116,964 (3,481) $ I RESOURCES: Loan Proceeds, net of issuance costs Resources from Fund 142 Resources from Fund 142 Transfer In (Fund 142) Interest Revenue Total Resources EXPENDITURES: Materials & Services Architecture/Design Engineering Internal Service Fund Charges Fees, Permits & SDCs Utilities Travel -Meals/Mileage Reimb Total Materials & Services Capital Outlay Land and Building Remodel Total Capital Outlay Contingency Total Expenditures Net Deschutes County North County Services Building Inception through October 31, 2013 ACTUAL Received or Encumbrances Project to PROJECTION Expended & Commitments Date I a) 1,402,013 1,402,013 b) 25,000 25,000 c) 600,000 600,000 7,723 7,723 2,034,736 2,034,736 51,735 25,000 76,735 c) 19,341 19,341 1,651 1,651 20,012 20,012 23 23 Budget· I Projected I I Variance 5,500,000 (5,500,000) 1,402,013 1,402,013 25,000 25,000 700,000 700,000 50,000 50,000 7,677,013 2,177,013 (5,500,000) 325,000 325,000 100,000 100,000 31,724 31,724 200,000 200,000 20,000 20,000 23 ~23} 92,763 25,000 117,763 676,724 676,747 ~23} 1,402,013 1,402,013 b) 1,402,013 1,402,013 230 230 a) 5,481,426 5,481,426 1,402,243 1,402,243 6,883,439 1,402,013 ~81,426 116,850 116,850 1,495,005 25,000 1,520,005 7,677,013 2,078,760 5,481,403 539,730 (25,000) 514,730 98,253 98,253 • The project budget is the consolidation of FY 2012 & FY 2013 and FY 2014 adopted budget a) FY 2014 budget includes appropriation of proceeds of issuance of $5,500,000 FF&C Bonds. This is not likely to occur in FY 2014. b) The building was purchased in FY 2011 with resources from General County Projects (Fund 142) -$1,402,013 c} $25,000 was paid to the architect in FY 2011 with resources from General County Projects Fund (Fund 142) Deschutes County Sisters Health Clinic (Fund 464) Inception through October 31,2013 ACTUAL Projected RESOURCES: Beginning Net Working Capital Federal Grants 40,000 40,000 500,000 Resources from Fund 142 48,626 48,626 a) 48,626 Transfer in (Fund 142) 100,000 100,000 100,000 Interest Revenue 485 485 600 Total Resources 189,111 189,111 649,226 EXPENDITURES: Materials & Services Architecture/Design 56,499 56,499 a} 56,607 Engineering Planning 1,140 1,140 2,000 Surveying 2,029 2,029 2,029 Interfund Charges 2,281 2,281 3,318 Fees, Permits & SDCs 25,549 25,549 25,549 Utilities 2,000 Miscellaneous Project Costs 993 993 993 Miscellaneous Admin Costs 26 26 4,000 Total Materials & Services 88,517 88,517 96,496 Capital Outlay New Construction 55,312 497,418 552,730 b) 552,730 Total Capital Outlay 55,312 497,418 552,730 552,730 Contingency Total Expenditures 143,830 497,418 641,247 649,226 Net 45,282 (497,418) (452,136) 0 ==-=== a) $48,626 paid to the architect in FY 2012 with resources from General County Projects Fund (Fund 142) b) Additional costs due to delay in the project have not yet been determined. - - ---- I Deschutes County General Support Services -BOCC Conference/Seminar, EducationlTraining and Travel Expenditures I County College Expenditures.~ FY2014 1 .f ~ I I I I FY 2014 IBOCC Conference &Travel I Jul Aug Sep Oct Total =-____~----------------~----~~--~~--~~----_+-------L----~Tammy Baney -conf!Sel11 & Ed7 u-cff-==-ra-:j,.-ni=-n-g--··---------~. --=3=5----------34-0-~--375---·····--- Travel Meals Accommodations 312 312 Airfare '---Mileage reimbursement-----··---4,.-7-8~----1-'0-'4------'--··-·-5-8-2-----· Ground-,r:anspOi17ParkInQ···---··· -..---.-...---.....-...---------~-...---.... ....__. Total Baney 513 104 652 1,269I Alan Unger --c·--····-·----····-----····-·-·--···· .... ---..------------1 Conf/Sem &EduclTraining 205 -10 375 590 1--=-. ----..----..-.--..---...-------..--------. Travel Meals - - - ....--... ...-....--... ....--..---:::-----=--:c---.---... Accommodations 192 - -415 608Alrtare--·-·····-----.------------....-----..------------.---.---.-- ....__....__..._..•_-_...._----_. ---_._-----'--------.. Mileage reimbursement Ground TransportlParking ..... Total Unger 397 -10 790 1,198 Tony DeBone Conf/Sem & E~i.iClTraining ._···=====-=-=-=-=5::2_0~-_-_-_-_--~~~----,-184---3c-4c-=0-~~~1~·,0~84,.-42_-~~___....-._ Travel Meals r---:----..-.--...---...-.------:-......----. Accommodations 618 --------1,197 .. _-_......--_ Airfare 658 708 ~:--...-:---:------------------c:-=_: ---------:--.:-:-----...,-.,-::---.----.. Mileage reimblJrsem~~_.._ ..___... __-___~_..___ _ __5=16-:---_....____ Ground Transport -74 r-.--..---...---.-...---...---===~===---==='-..-:==--====-----I Total DeBone 1,795 3,620 ..._-....._._-... _-----'--------------'-------"-..__...---- Total -BOCC Department ___.... ..._______... ....__.--,----,-______ Conf/Sem &EduclTraining...._._ 725 35 194 1,055 2,009 .. ___.._ Travel Meals -82 - -82f--::------...--.-...----.--------....--.-c----..--::-----:--.,---------1 Accommodations 810 164 -1,143 2,116r--AJrtare--·-···--···---658 50 -····----··-····---708--···-···· Mileage Reimbursement -_. ---~-583 104 411 1,098-r--=-.... ....----.... ....----....--.... Ground Tran~port ....____ _ -74 - -74 Total -BOCC Dep~rtment 2,192 987 298 2,808 6,086 .....!!2014 Original Budget _ .. _. ___ . 15,250----._- Percent of FY 2014 Budget Expended 39.9% eocc County C~lIege.__... _______._____.__ .... ...-------..-------. - Office/CopierSupplies ....__... __._1_7_6_.. _ --~ 48 224 ... _---.... -289 1,968 2,257MeetingS_u_pp_lie_s____._._.__-==-=c.......:::===-- -Total BOCC Coun-ty Colleg&-176 -289 2,015 2,480 -~~--~~~~~~~~~~~~~~~~~- ~..=--:-::--------,---.---:----.,---:------=----------:--;:-----'--------.---j NOTE: Above amounts include only those expenditures processed for pa'--"ymc...__e=-n=-t._-:--.::--___--,--._ Additional conference and travel costs may have been incurred, but not processed for paym---c-e _ nt_.--I JRF 10/31/2013 Deschutes County Finance Department 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 tt./~ RE: Investment Policy Update The current Deschutes County investment policy (Board policy F-lO) 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 VII, 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 lXI, 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, atherwise 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 cond ucting 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 40f12 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 50f12 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(0)2 or 3(0)3 of the Securities Act of 1933. 2. Corporate Bonds • Municipal Debt • Bankers Acceptonces • 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 "l44A" 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) ofthe 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 60f12 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/M/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 Per D.a,;>nr'V Oregon Short Term Fund 100% 33% Maximum allowed per ORS 294.810 Bankers' Acceptances 2 Al+/Pl/F1+ Time Deposits/Savings Accounts/Certificates of Deposit(2) 50% Page 70f12 Per Institution 25% Corporate Debt (Total) 25%(3) Corporate Commercial Paper Per Issuer A1/Pl/Fl Corporate Bonds Per Issuer A/A/A Municipal Debt 25% Municipal Bonds Aa/AA/AA (1) 25% Maximum per ORS 294.035(0) (2) As authorized by ORS 294.035(3)(d) (3) 35% Maximum per ORS 294.035(0) (4) 5% Maximum per ORS 294.035(0) 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 80f12 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% Munici rnlrnrlr~1r". Bonds 25% 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 ofthis policy and the applicable bond covenants and tax laws. Page 9 of12 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 complia nce 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 Standardsl 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; 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 SHORT TERM FUND BOARD JSO WINTER STREET NE . SUITE 100 SALEM. OREGON 973 10 ·0840 (503) 376·4633 FAX (503) all-11 79 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 shoufd 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. cc: Alan Unger, Commissioner Tammy Baney, Commissioner Tony DeBone, Commissioner Wayne Lowry, Finance Director Tom Lofton, Oregon State Treasury Deschutes County Finance Department 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 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, I, 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 estab lished 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 d4-A ~7.~:wry Finance Director Deschutes County Administrative Policy No. F-IO Effective Date: January 7, 2008 Revised Date: June 24, 2009 Revised Date: September 20, 2012 INVESTMENT POLICY GUIDELINES STATEMENf 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 ofOregon. 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-I 0, Investment Policy Guidelines Page I of7 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. INVES1MENT 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% ofthe 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-IO, Investment Policy Guidelines Page 20f1 • 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 us Government Agencies State of Oregon Investment Pool Certificates of Deposit Banker's Acceptances Commercial Paper State & Local Government Securities Repurchase Agreements Corporate Indebtedness 100% 75% 50% in any single government sponsored enterprise 100010 or the maximum imposed by statute 25% of total portfolio 30% in any single qualified financial institution 25% of total portfolio 30% in any single qualified financial institution 20% of total portfolio 5% in anyone corporation, subsidiaries or affiliates 25% of total portfolio 25% of total portfolio 10% in any single qualified financial institution 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: Poljcy #F-\ 0, Investment Policy Guidelines Page 3 of7 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% ofthe 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 COLLATERALIZA TlON: 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 (Le. 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-I 0, Investment Policy Guidelines Page4of7 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-lD, Investment Pol icy Guidelines Page 5 of7 -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 confinnation 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.l35a. In addition an Investment Committee consisting of five members wi1l 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/ChiefFinancial 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 Premier West Bank Sterling Savings Bank South Valley Bank & Trust Policy #F-lD, Investment Policy Guidelines Page 6 of7 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. ~A Erik Kropp ~ Interim County Administrator Policy #F-IO,lnvestment Policy Guidelines Page 7 of7 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 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 10i 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. Sincerely, Chris Doty, PE Director, Deschutes County Road Department 61150 SE 27th Street Bend, OR 97702 541.322.7105 chris.doty@deschutes.org .,,. ~ ,..... , • .. .' • \ . I -?/t-~ ~&v. Itt~l' O-? Q«-v¢ ~ ~~-<:. ~y..G ~Ov s~o <5>:1'-\"'~" C ~ . • .. , ;. .. .. -' ,. j""l' "'- • • ..• II Rana Pretiosa in Deschutes County Legend ---County Maint in Habitat ) [ Bridges in Habitat County Routes D Rana Pretiosa .---. River Lake (IIl;B III Miles Printed: 11/25/2013 UI. -• John Ande rso n, GIS Ana lyst Ph one : (54 1) 322·7102 Em~lI: JoIIn.a ndersonOdesch utes.org Address: 611 50 Sf 27th St The information on this map was derivtld from dgillli databases on DeschutBS County's G .I.S. Care was taken in tile Cfe21tion of this map, but it is provided "lis is". o.s<:hutBs County CIII1not accept any ,.,sponsibility for errors, omissions, or posi~onal accuracy in tile digital data or the underlying r1!lCords . The,., are no warranties, express or implied, including the warranty of merchantability or fitness for a particular purpose, accompanying this product. However, notification of any "notS will be appreciated . P:IArcGIS_Prolects\