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Home My WebLink AboutFY 2017 Comprehensive Annual Financial ReportComprehensive Annual Financial Report As of and for the Year Ended June 30, 2017 Deschutes County, Oregon DESCHUTES COUNTY, OREGON 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 COMPREHENSIVE ANNUAL FINANCIAL REPORT As of and for the Fiscal Year Ended June 30, 2017 Prepared by: Deschutes County Finance Department Wayne Lowry, CPA Finance Director Jeanine Faria Accounting Manager Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2017 Introductory Section Letterof Transmittal.................................................................................................................................................. l OrganizationalChart .............................................................................................................................................. 5 List of Elected and Appointed Officials................................................................................................................. 7 GFOA Certification of Achievement......................................................................................................................... 8 Financial Section IndependentAuditors' Report ........................................................................................................................................9 Management's Discussion and Analysis.................................................................................................................. 12 Basic Financial Statements Government -Wide Financial Statements Statementof Net Position................................................................................................................................ 24 Statementof Activities.................................................................................................................................... 26 Fund Financial Statements: Governmental Funds BalanceSheet.................................................................................................................................................. 28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ......................... 30 Statement of Revenues, Expenditures, and Changes in Fund Balances.......................................................... 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities........................................................................................ 34 Fund Financial Statements: Proprietary Funds Statementof Net Position................................................................................................................................ 36 Statement of Revenues, Expenses, and Changes in Net Position.................................................................... 37 Statementof Cash Flows................................................................................................................................. 38 Fund Financial Statements: Fiduciary Funds Statement of Fiduciary Assets and Liabilities................................................................................................. 39 Notesto Financial Statements.............................................................................................................................. 40 Required Supplementary Information Schedule of the Proportionate Share of the Net Pension Liability (Asset).............................................................72 Schedule of Employer Contributions.................................................................................................................... 73 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual GeneralFund................................................................................................................................................... 74 Deschutes County Sheriff's Office.................................................................................................................. 75 Countywide Law Enforcement District........................................................................................................... 76 Rural Law Enforcement District...................................................................................................................... 77 RoadDepartment............................................................................................................................................. 78 Deschutes County 9-1-1 County Service District............................................................................................ 79 HealthServices................................................................................................................................................ 80 PERSReserve.................................................................................................................................................. 81 Notes to Required Supplementary Information............................................................................................... 82 vu Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2017 Other Supplementary Information Combining and Individual Fund Statements and Schedules — Governmental Funds Major Funds and Sub -Funds Combining Balance Sheet GeneralFund........................................................................................................................................... 83 Deschutes County 9-1-1 County Service District.................................................................................... 86 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances GeneralFund........................................................................................................................................... 87 Deschutes County 9-1-1 County Service District.................................................................................... 90 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Sub -Funds of the General Fund Economic Development..................................................................................................................... 91 CourtTechnology Reserve................................................................................................................. 92 Assessor, Clerk and Tax Reserve....................................................................................................... 93 HumaneSociety of Redmond............................................................................................................. 94 Project Development Fund................................................................................................................. 95 GeneralCounty Projects..................................................................................................................... 96 GeneralCapital Reserve..................................................................................................................... 97 Community Justice — Juvenile............................................................................................................ 98 CodeAbatement................................................................................................................................. 99 Vehicle Maintenance and Replacement........................................................................................... 100 Sub -Fund of Deschutes County 9-1-1 County Service District 9-1-1 County Service District — Equipment Reserve....................................................................... 101 Nonmajor Governmental Funds and Sub -Funds CombiningBalance Sheet.......................................................................................................................... 103 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 104 Nonmajor Special Revenue Funds CombiningBalance Sheet.......................................................................................................................... 105 Deschutes County Extension 4-H County Service District and Sub -Fund ............................................ 112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 113 Deschutes County Extension 4-H County Service District and Sub -Fund .......................................... 119 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual JusticeCourt ........................................................................................................................................ 120 Industrial Lands Proceeds.................................................................................................................... 121 Park Acquisition and Development..................................................................................................... 122 ParkDevelopment Fees....................................................................................................................... 123 CountySchool Fund............................................................................................................................ 124 Special Transportation Fund................................................................................................................ 125 TaylorGrazing..................................................................................................................................... 126 TransientRoom Tax............................................................................................................................ 127 vu Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2017 VideoLottery....................................................................................................................................... 128 TransientRoom Tax — I% ................................................................................................................... 129 ForeclosedLand Sales......................................................................................................................... 130 Victims' Assistance............................................................................................................................. 131 LawLibrary......................................................................................................................................... 132 CountyClerk Records.......................................................................................................................... 133 CourtFacilities..................................................................................................................................... 134 Deschutes County Communication System Reserve........................................................................... 135 CommunityDevelopment................................................................................................................... 136 CDDGroundwater Partnership............................................................................................................ 137 NewberryNeighborhood..................................................................................................................... 138 GISDedicated Fund............................................................................................................................. 139 Natural Resource Protection................................................................................................................ 140 FederalForest Title III......................................................................................................................... 141 Surveyor............................................................................................................................................... 142 Public Land Corner Preservation......................................................................................................... 143 Countywide Transportation SDC Improvement Fee........................................................................... 144 DogControl......................................................................................................................................... 145 AdultParole and Probation.................................................................................................................. 146 Extension4-H...................................................................................................................................... 147 Extension 4-H Reserve (Sub -Fund of Extension and 4-H).................................................................. 148 Nonmajor Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Deschutes County Full Faith and Credit Debt Service........................................................................ 149 Nonmajor Capital Project Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual RoadCapital Improvement Plan.......................................................................................................... 150 Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds — Detail Activity ........................................... 151 Combining and Individual Fund Statements and Schedules — Proprietary Funds Enterprise Funds Combining Schedule of Revenues, Expenses, and Changes in Net Position Fair and Expo Center Enterprise Operations Fund and Sub -Funds ..................................................... 152 Combining Schedule of Cash Flows Fair and Expo Center Enterprise Operations Fund and Sub -Funds ..................................................... 153 Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual SolidWaste.......................................................................................................................................... 154 Fairand Expo Center........................................................................................................................... 155 Fairgrounds General Obligation Bonds Debt Service Fund (Sub -Fund of Fair and Expo) ................. 156 RVPark............................................................................................................................................... 157 vii Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2017 Internal Service Funds Combining Statement of Net Position....................................................................................................... 158 Combining Statement of Revenues, Expenses, and Changes in Net Position .......................................... 160 Combining Statement of Cash Flows........................................................................................................ 162 Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Propertyand Facilities......................................................................................................................... 164 AdministrativeServices....................................................................................................................... 165 Board of County Commissioners......................................................................................................... 166 Finance................................................................................................................................................. 167 FinanceReserve................................................................................................................................... 168 Legal.................................................................................................................................................... 169 HumanResources................................................................................................................................ 170 InformationTechnology...................................................................................................................... 171 Information Technology Reserve........................................................................................................ 172 Insurance.............................................................................................................................................. 173 HealthBenefits.................................................................................................................................... 174 Other Financial Schedules Schedule of Property Taxes Transactions — All County Taxes................................................................... 175 Schedule of Long -Term Debt Transactions................................................................................................. 176 Schedule of Long -Term Debt Interest Transactions.................................................................................... 177 Schedule of Future Debt Service Requirements of Pension Obligation Bonds ........................................... 178 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds — GovernmentalActivities......................................................................................................................... 179 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds — Business -Type Activities........................................................................................................................ 182 Statistical Section Statistical Section Contents........................................................................................................................ 183 Financial Trends Net Position by Component — Last Ten Fiscal Years........................................................................... 184 Changes in Net Position — Last Ten Fiscal Years................................................................................. 186 Fund Balances - Governmental Funds — Last Ten Fiscal Years........................................................... 190 Changes in Fund Balances - Governmental Funds — Last Ten Fiscal Years ........................................ 192 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ................ 194 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ................................................... 196 Principal Property Taxpayers — Current Fiscal and Nine Years Ago .................................................... 198 Property Taxes Levies and Collections — Last Ten Fiscal Years.......................................................... 199 Debt Capacity Ratios of Outstanding Debt by Type — Last Ten Fiscal Years..............................................................200 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years .................................................202 Direct and Overlapping Governmental Activities Debt........................................................................203 vu Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2017 Legal Debt Margin Information — Last Ten Fiscal Years.....................................................................204 Pledged -Revenue Coverage — Last Ten Fiscal Years...........................................................................206 Demographic and Economic Information Demographic and Economic Statistics — Last Ten Calendar Years......................................................207 Principal Employers — Current Year and Nine Years Ago...................................................................208 Operating Information Full -Time Equivalent County Government Employees by Function/Program — LastTen Fiscal Years.......................................................................................................................210 Operating Indicators by Function/Program — Last Ten Fiscal Years .................................................... 212 Capital Asset Statistics by Function / Program — Last Ten Fiscal Years..............................................214 Audit Comments and Disclosures Required By State Regulations Audit Comments and Disclosures Required by State Regulations...............................................................217 Independent Auditor's Report Required by Oregon State Regulations ........................................................219 Single Audit Compliance Internal Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................................................................................................221 Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by the Uniform Guidance ......................................................223 Schedule of Expenditures of Federal Awards..............................................................................................225 Notes to the Schedule of Expenditures of Federal Awards..........................................................................228 Schedule of Findings and Questioned Costs................................................................................................233 vu Introductory Section As of and for the Year Ended June 30, 2017 Deschutes County, Oregon --VES ., DEPARTMENT OF ADMINISTRATIVE SERVICES �J Tom Anderson, County Administrator o .%AA { P. O. Box 6005 ■ Bend, Oregon 97708-6005 1300 NW Wall Street, Suite 206 ■ Bend, Oregon 97708 (541) 388-6565 • FAX (541) 385-3202 wwwAmbutes.ore October 30, 2017 To the Board of County Commissioners and citizens of Deschutes County, Oregon: We are pleased to submit the Comprehensive Annual Financial Report of Deschutes County, Oregon (the County) as of and for the year ended June 30, 2017, together with the opinion of our independent certified public accountants, Eide Bailly LLP. This report, required by Oregon Revised Statutes 297.425, is prepared by the Finance Department. Also included are Audit Comments and Disclosures required under the Minimum Standards for Audits of Oregon Municipal Corporations Section of the Oregon Administrative Rules. In addition, the County is required to have a comprehensive single audit of its Federal Assistance Programs in accordance with the Single Audit Act, Office of Management and Budget (OMB) Compliance Supplement and the provisions of Government Auditing Standards promulgated by the U.S. Comptroller General as they pertain to the financial and compliance audits. A report on the County's compliance with applicable Federal laws and regulations related to the Single Audit Act, OMB Compliance Supplement is included with this report beginning on page 221. This report is prepared in conformance with the guidelines for financial reporting developed by the Government Finance Officers Association of the United States and Canada and the principles established by the Governmental Accounting Standards Board (GASB), including all effective GASB pronouncements. It presents fairly the financial position of the various funds of the County as of June 30, 2017, and the results of operations for the year then ended in conformity with accounting principles generally accepted in the United States of America (US GAAP). The report consists of management's representations concerning the finances of the County. Consequently, management assumes full responsibility for the completeness and reliability of all information presented in this report. To provide a reasonable basis for making these representations, County management has established a comprehensive internal control framework that is designed both to protect the County's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the County's financial statements. Because the cost of internal control should not outweigh its benefits, the County's comprehensive framework of internal controls has been designed to provide reasonable assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. Deschutes County's MD&A can be found immediately following the independent auditors' report. Profile of the County The County, formed in 1916, is located in the central part of the state and covers an area of 3,055 square miles. The County has three full-time commissioners, who are elected at -large to serve four-year terms. Daily administrative duties are overseen by an appointed County Administrator, while the Board of County Commissioners sets policy, adopts the annual budget and passes ordinances in accordance with state law. The County provides a full range of services including sheriff's patrol, investigative and correction services, construction and maintenance of roads and bridges, property assessment, tax collection, public and behavioral health services, land use planning, building permitting and inspections, prosecution of criminals, veterans services, justice court, parole & probation, election services, records maintenance, and operation of a landfill, a fair and expo center, and an RV park. Bvh,7ncrng the Leves of Citizens byDelrvermg QV,71,01 Servrces rrs 7 Cost -Effective Af")Yer Blended component units, although legally separate entities, are, in substance, part of Deschutes County's operations and are included as part of Deschutes County. Accordingly, the Countywide Law Enforcement District, Rural Law Enforcement District, Deschutes County 9-1-1 and Deschutes County Extension / 4-H are reported as special revenue funds of Deschutes County. The County utilizes a budget committee, consisting of the three commissioners and an equal number of citizens -at -large, to review and approve the proposed budget for each fiscal year. The annual budget serves as the foundation for Deschutes County's financial planning and control. The appropriated budget is prepared and adopted for all County funds as required by Oregon Local Budget Law (ORS Chapters 294.305-294.565). The board order adopting the budget establishes appropriations for expenditures within each fund, which cannot legally be exceeded. Budget -to -actual comparisons are provided in this report for each individual governmental and proprietary fund for which an appropriated annual budget has been adopted. For the General Fund, and the major special revenue funds, this comparison is presented beginning on page 79 as part of the required supplementary information. All other funds are presented in a subsection of this report, which starts on page 83. Local Economy Deschutes County is the outdoor recreation capital of Oregon. With noble, snow-capped peaks dominating the skyline to the west and the wide-open high desert extending to the east, the beauty and uniqueness of Deschutes County captures the awe of locals and visitors alike. Deschutes County is a bustling, exciting place where progress and growth are hallmarks. Beginning in the early 1990s, Deschutes County has experienced rapid population growth. This growth is believed to be largely due to the area's invigorating climate and year-round recreation activities. The population is approximately 175,268, an increase of approximately 24% over the last 10 years, and is projected to exceed 240,118 by 2025. Recreational activities include downhill and cross-country skiing, snowboarding, fishing, hunting, hiking, rock -climbing, road and mountain biking, mountain climbing, whitewater rafting and golfing. Deschutes County is the host of diverse annual events including the Bend Brewfest, Bend Venture Conference, Sunriver Music Festival, Sisters Outdoor Quilt Show, Cascade Children's Festival/Balloons over Bend, Pole Pedal Paddle, Sisters Rodeo, WinterFest, Bend Film Festival and the Cascade Cycling Classic. In Fiscal Year 2017, the County's assessed valuation of taxable property increased by 5.0%, approximately $1.04 billion, to a total of $21.98 billion. Formerly a region dependent on wood products, Deschutes County has steadily diversified its employment and economic base. For the past decade, Deschutes County has experienced growth in the technology sector and is home to award winning craft breweries. Numerous companies from the Silicon Valley, Portland -Vancouver Metro and Puget Sound have relocated or expanded here. Many of these firms are small but extremely innovative, producing niche - market products from semiconductors to software, medical instruments to recreational equipment. Tourism in Deschutes County contributes to the diversified economy due to the abundance of year-round recreational activities. The County is home to a major medical center, designated as a Level II Trauma Center with nearly 300 active medical staff. Financial Policies The County has established policies which are reviewed and adopted annually by the Board of County Commissioners in conjunction with the budget process. The County recognizes the need to ensure that it is capable of adequately funding and providing County services needed by the community on a sustainable basis. The Board acknowledges that in order to maintain a prudent level of financial resources to protect against the need to reduce service levels or raise taxes (voter -approved local option levy) and fees due to temporary revenue shortfalls or unforeseeable one-time expenditures, the County will strive to maintain a working capital balance in each fund, based on the function of that fund. For most operating funds, the level is 8.3% of the fund's operating budget. For funds with property taxes as a significant portion of revenues, the level is one-third of estimated annual property tax collections. PA Long -Term Financial Planning PERS Rates — The state retirement system, known as PERS, sets rates for employers every two years. Due to a number of factors, PERS rates charged to employers are anticipated to increase significantly over the next several years. The County anticipates its average employer rate to nearly double over the next six years. The County's accumulated resources in a reserve fund will be used over the next six to eight years to lower the PERS costs to departments. The balance in the reserve fund at June 30, 2017 is $13.2 million and the balance is projected to increase by $3 million during FY 2018. The County expects PERS rates to increase in FY 2020 and again in FY 2022. The County will continue to monitor employer rates and use the reserve fund to smooth rate increases to departments. The County's 9-1-1 center is funded through property taxes levied by the Deschutes County 9-1-1 County Service District. The District's property taxes came from two sources including a permanent rate of $.1618 per $1,000 of assessed valuation and a five-year local option levy of $.20 per $1,000, through FY 2017. An updated strategic plan was adopted by the District's governing board and implemented by the District during FY 2015. The plan called for the enhancement of services available for first responders and for the development of an updated communications system consisting of the integration of telephone, radio and public safety records systems. Voters overwhelmingly approved the formation of a new district, to replace the existing District, with a permanent rate of $.425 per $1,000. The assets and liabilities of the District were transferred to the new district effective July 1, 2017. This new levy authority is expected to provide adequate funding into the future for growth and enhanced services. Major Initiatives Finance/Human Resource Software — The County has been using a Finance/Human Resources program since FY 2000 as its base accounting system. The County awarded a contract in the spring of 2016 to Tyler Technologies for a two -phased project that officially began in May 2016. The financial phase of the project was substantially completed in July 2017 and the payroll/human resources phase of the project is expected to be completed in early 2018. In February 2017, the County Health Department was selected to participate in a federally funded pilot project known as Certified Community Behavioral Health Clinic or CCBHC. This program is sponsored by the Federal Substance Abuse and Mental Health Service Administration. Oregon was one of eight states selected for this project. The project is funded by a grant of $5.6 million from April 2017 to March 2019. The Health department anticipates 29 new staff positions to carry out the grant requirements. It is not clear whether the grant will be renewed once it expires, therefore, all staff related to the project are limited duration employees. The County plans to spend over $18 million during the next five years on road improvement projects. Four projects make up most of the current capital plan including Huntington/Deer Run and Burgess/Day Road paving projects estimated at $2 million in the La Pine area, improvements to the Old Bend/Redmond Corridor estimated at $6.5 million, improvements to NE 17th and NE Negus in the Redmond area estimated at $2.4 million and improvements to Hunnel Road estimated at $3.4 million. The County established a capital project fund in its FY 2017 budget and will transfer certain resources for the funding of these major capital improvements each year. House Bill 2017-A was signed by the Governor increasing the State Gas Tax and Vehicle Registration fees phasing in the increases over the next several years. This action increases road maintenance and improvements resources for the County by an estimated $4.9 million per year over the next several years. This will allow the County to move forward on a number of projects in the CIP plan that have not been funded in the past. The Health Department and the Sheriff s office are partnering on the development of a Crisis Center/Sobering Station for Deschutes County. The purpose of the Center is to provide a place for public safety and health staff to place individuals with acute mental health or substance abuse issues in lieu of sending them to jail. The Center will have coordinated services for mental health in a secured and safe facility. Funding for the Center is included in both the Sheriff budget and the Health Department budget for FY 2018. The facility is expected to be established near the Sheriff complex in the City of Bend but will be available to area partner agencies. The County provides the facility for the Extension 4/H County Service District. The District is staffed by Oregon State University faculty and staff to operate extension and 4/H programs throughout the County. Extension staff have requested an expansion of the facility to provide space for expanding programs. The County is considering financing a portion of the expansion costs to be repaid over 20 years from the District's tax levy. Architectural and financing plans are expected to be completed in the fall of 2017 with construction to be completed by June 2019. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Deschutes County for its comprehensive annual financial report for the fiscal year ended June 30, 2016. This was the sixteenth consecutive year that the County has received this prestigious award. In order to be awarded a Certificate of Achievement, the County published an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we will submit it to the GFOA to determine its eligibility for another certificate. The County also received the GFOA's Distinguished Budget Presentation Award for its annual budget document for FY 2017. To qualify for this Distinguished Budget Presentation Award, the County's budget document had to be judged proficient as a policy document, a financial plan, an operations guide and a communication device. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the Finance Department. Acknowledgment should also be given to the Board of County Commissioners for their interest and support in planning and conducting the operations of the County in a responsible and progressive manner. Respectfully submitted, Tom Anderson County Administrator 1��- XW7-- Wayne Lowry Finance Director 4 CountyA-sesar G=WlyGE& ScatLangbw KancyBlIanlceml dppraisak ins Assessment poonnert Reoor� �9 Carmg3apbf Wal Poecao� Citizens of Deschutes County ccmty Sheriff 3a3rd of Commissioners ftxney Justice of the L. Shane Nelson Ant•cry Debate �n um" Peace Wavy- Lorry AWcinted; Aa^ Unger Chades Fadeey Tanrny Baney Cor3ectons Pruseanion in Traffic' OrdinanceE strrentJaW WorkCenter} Circuit Co..'t VocationsL. Eniorcevnent County Treatrncnt ;,Duns Small Clams Court svnb.on Legal Counsel livid Doyle WdntAndeisr Tan Rndersm kdrrhnseatve 8 Victims' Assismnce 9�art Senrioes County Legal cepartrnent Adntinistat %W Cburt Proceedngs R LElected Offices Appointed Offices Department Functions Aa nln s:ratar Som2Ounty ArUelsan H -a 3ffMpas SaW Waste I Fat& FIW CelNer Roatl IMI. nerd ' a'— YlY Dr. ti ilmrn%Mlmie Dan Despdoplds mg%Daly eVd Ptbllc Health 6ehavlor8 ieai'h iancMIl Dwpasal Co -mnlly Heyli Chid & FanYly ransier Dperara Rep-ILE11- Heah Atlutt Treamerri 3eq+ding SerMoe mahw"Chld Derelopmenlal ❑etentlon Heyli Dwabllltles EmImnmenal saw VkwnwL Yra a A=m & Ctlsls F= Managemerd alaw om) Servlxs cls MOM 8 Drag Prerarem Joe SaWmy � Lear+r9 cored $ O DevHaVMalnlalm -ysm RDab L Plinnh g drrenle.istce O MrZIEW Gamud'.y Servlc Cbuny Fat Dbunty 9urreyar 6Ldbng Jwenle MonlmYg ❑etentlon Trarwltlalal NDxlmn Weed Go'rtl�o EmImnmenal saw ptierslon PFOPUti a Fdd�6 F= Managemerd Fleet Equlpmeni o- ces Code EnRtrcemeni cls Internal Service Departments Ken Hales AdrA Paroled Pmbardm drrenle.istce O MrZIEW Gamud'.y Servlc mmer"- Sigerdslan Ewvir� Jwenle MonlmYg ❑etentlon Trarwltlalal PiObaJon S Snvtcee ptierslon reel PulcMEW11Property ARnIrlt��r FlnalrcefT`dx Etlt Krt�p Wayne Lowy Jj,pr� internal ALidMng Arg Inrormatlon PFOPUti a Fdd�6 F= Managemerd Human Resmrnes Technalogy VeLelanb'vtlY1Ge6 Paymi PI�IIC Infimdlar Joe SaWmy awget Nan�dl ReSburEe aulding WbllefL' 3LYf Re�7�oert Tedlnblogy PfMeLlYarr ManlGenanx -.pLn&Aw �' Lary Tax C011ecian —r" Camperlsallon Web Appllratlons Dog tJcerking Yaerce GIS Unemployment n6ularlce Rehrerrlet AmeMM nswtlh PIn¢ar11G Dl ablltle6 Act F1e.�r 6er�ik f = County & Deputy County Administrator Appointed Offices Department Functions ti J reel List of Elected and Appointed Officials ELECTED OFFICIALS COUNTY COMMISSIONERS Tammy Baney Anthony DeBone Phil Henderson ASSESSOR DISTRICT ATTORNEY Scot Langton John Hummel SHERIFF TREASURER Shane Nelson Wayne Lowry COUNTY CLERK Nancy Blankenship JUSTICE COURT Charles Fadely APPOINTED OFFICIALS County Administrator - Tom Anderson County Counsel — David Doyle Finance Director - Wayne Lowry Internal Auditor - David Givans Administrative Offices 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 VA Govemment Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Deschutes County Oregon For its Comprehensive Annual Financial Deport for the Fiscal Year Ended r June 30, 2016 F e-litive Dire: OT/cF M Financial Section As of and for the Year Ended June 30, 2017 Deschutes County, Oregon EideBailly. CPAs & BUSINESS ADVISORS Independent Auditor's Report To the Deschutes County Board of Commissioners Deschutes County, Oregon Bend, Oregon Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of Deschutes County, Oregon (the County) as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the County, as of June 30, 2017, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 9 What inspires you, inspires us. let's talk. I eideboilly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, schedule of proportionate share of the net pension liability (asset), schedule of employer contributions, and the schedules of revenues, expenditures, and changes in fund balances — budget and actual and related notes (budgetary schedules), as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the infomation because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's financial statements. The budgetary schedules described above are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The budgetary schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting an d other records used to prepare the basic financial statements or to the basic financials statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's financial statements. The introductory section, the combining and individual fund statements and schedules — governmental funds, the statement of changes in assets and liabilities — agency funds — detail activity, combining individual fund statements and schedules — proprietary funds, schedule of property tax transactions, schedules of long- term debt transactions, schedules of future debt service requirements, and statistical section. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and is not a required part of the financial statements. The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated October 30, 2017 on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance. Report on Other Legal and Regulatory Requirements In accordance with the Minimum Standards of Audits of Oregon Municipal Corporations, we have issued our report dated October 30, 2017, on our consideration of the County's compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. For Eide Bailly LLP Boise, Idaho October 30, 2017 11 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 As management of Deschutes County, we offer readers of Deschutes County's financial statements this narrative overview and analysis of the financial activities of Deschutes County as of and for the Fiscal Year ended June 30, 2017. We encourage readers to consider this information in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-4 of this report. Financial Highlights • On a government -wide basis, total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $189,569,000 as of June 30, 2017, an increase of $6,475,000 in net position from June 30, 2016. Deferred outflows and inflows are mostly pension -related balances that are explained in the notes to the financial statements. • The County reported a combined fund balance of $113,649,000 for its governmental funds, an increase of $5,800,000 from June 30, 2016. Of this balance, $37,385,000 is available to meet the County's obligations. The remainder is either non - spendable or restricted. • County General Fund o The General Fund's fund balance, including the sub -funds of the General Fund, was $23,827,000 as of June 30, 2017, an increase of $2,453,000 over the balance at June 30, 2016. General Fund (Operations) Sub -funds of the General Fund June 30, 2017 June 30, 2016 $ 10,964,898 $ 11,308,301 12,861,835 10,065,919 $ 23,826,733 $ 21,374,220 o Fund balance is 64.9% percent of the Fund's combined revenues and transfers in and 69.5% of the fund's combined expenditures and transfers out. • The County's Assessed Valuation of Taxable Property increased by 5% in Fiscal Year 2017. • Total bonded debt was $58,611,000 as of June 30, 2017, compared to total bonded debt of $65,012,000 as of June 30, 2016. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Deschutes County's basic financial statements. These basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of Deschutes County's finances, in a manner similar to a private -sector business. The Statement of Net Position presents information on all of Deschutes County's assets, liabilities, deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Deschutes County is improving or deteriorating. The Statement of Activities presents information showing how Deschutes County's net position changed during the fiscal year. Changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued compensated leave that will result in cash flows in future fiscal periods. 12 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 Each of these government -wide financial statements, Statement of Net Position and Statement of Activities, distinguish functions of Deschutes County that are supported primarily by taxes and inter -governmental revenues (governmental activities) from other functions that are intended to recover all, or a significant portion of, their costs through user fees and charges (business -type activities). The governmental activities of Deschutes County include general government, public safety, roads, health and welfare, and education. The business -type activities of Deschutes County include Solid Waste operations, the Deschutes County Fair & Expo Center and the RV Park. The government -wide financial statements include four county service districts: Countywide Law Enforcement District, Rural Law Enforcement District, Deschutes County 9-1-1 District and Deschutes County Extension and 4-H Service District. These entities are legally separate but are included as blended component units based on the criteria described in the Notes to Financial Statements (Note 1 — Summary of Significant Accounting Policies). Requests for copies of the separately issued financial statements for the county service districts should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Suite 200, Bend, OR 97703. The government -wide financial statements can be found on pages 24-26 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Deschutes County, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Each of the funds of Deschutes County is classified in one of three categories: governmental funds, proprietary funds or fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near term financing decisions. A reconciliation from the Governmental Funds Balance Sheet to the Government -wide Statement of Net Position and a reconciliation from the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government - wide Statement of Activities have been included in this report. Reconciliation of the Governmental Funds Balance Sheet to the Governmental Activities column on the Statement of Net Position — The measurement criteria for each statement result in significant differences between these two statements. Capital assets of $144,218,000 used in governmental activities are not financial resources and therefore are not included in fund balance but are part of net position. Liabilities which will be liquidated more than one year from balance sheet date of $157,885,000, are not reported on the Balance Sheet but are reported on the Statement of Net Position. Deferred outflows and inflows of resources, related primarily to reporting the County's defined benefit pension plan, are reported in the Statement of Net Position but not on the Balance Sheet. The full reconciliation can be found on page 30. Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Governmental Activities column of the Statement of Activities — The fund balances of the County's governmental funds increased by $5,800,000 during FY 2017 while the net position of governmental activities increased by $4,495,000. This $1,305,000 difference is due to fiscal year transactions that are reported differently on each statement. Repayments of long term debt of $2,895,000 and expenditures for the acquisition of capital assets of $12,582,000 are not reported as expenses on the Statement of Activities. Instead they are reductions of noncurrent liabilities and additions to capital assets, respectively. Other reconciling items include accrued revenues and expenses and changes in accruals and deferrals netting a reduction in net position of $58,228,000. The largest item is the recognition of pension expense in the amount of $9,150,000 as required by GASB 68 that is reported only in the statement of activities, not the governmental fund statements as it is not a use of financial resources in the current period. 13 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 Deschutes County reported activity in forty-eight (48) individual governmental funds and sub -funds during Fiscal Year 2017. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund and the County's major funds (Sheriff's Office, Countywide Law Enforcement District, Rural Law Enforcement District, Road, Deschutes County 9-1-1, PERS Reserve and Health Services). Data from all other governmental funds are combined into a single, aggregated presentation. Individual data for each of these non -major governmental funds is provided in the form of combining statements in the "Other Supplementary Information" section of this report and in the budget to actual comparison schedules. Deschutes County adopts an annual budget for each of its funds and a budgetary comparison statement has been provided for each to demonstrate compliance with its annual budget. The Basic Governmental Fund Financial Statements can be found on pages 28-34 of this report. Proprietary funds. Deschutes County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions as business -type activities in the government -wide financial statements. Deschutes County uses enterprise funds to account for its Solid Waste, Fair & Expo Center operations and RV Park. An internal service fund is an accounting device used to accumulate and allocate costs internally among Deschutes County's various functions. Deschutes County uses internal service funds to account for its facilities, administrative, commissioner, finance, legal, personnel, information technology and insurance services. Because these services predominately benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds financial statements provide similar, but more detailed, information compared to the government -wide financial statements. The proprietary fund financial statements provide information separately for Solid Waste, Fair & Expo Center operations and the RV Park. Both Solid Waste and Fair & Expo Center are considered to be major funds of Deschutes County. The internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the "Other Supplementary Information" section of this report and in the budget to actual comparison schedules. The Basic Proprietary Funds Financial Statements can be found on pages 36-38 of this report. Fiduciary funds. Fiduciary funds, all of which are agency funds, are used to account for resources held for the benefit of third parties. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support Deschutes County's own programs. The Fiduciary Funds Statement of Assets and Liabilities can be found on page 39 of this report and the Statement of Changes in Assets and Liabilities on page 151. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 40-70 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents as required supplementary information, the budgetary comparisons for the General Fund and major special revenue funds. Required supplementary information begins on page 83. The combining statements referred to above in connection with non -major governmental funds and internal service funds are presented in the "Other Supplementary Information" section of this report. 14 Government -wide Financial Analysis Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 Deschutes County Net Position The County's net position at June 30, 2017 was $189,569,000. Net position may serve as a useful indicator of an entity's financial strength as it measures the entity's excess of assets and other resources over its obligations on a long term basis. Assets other than capital assets Capital assets Total assets Deferred outflows of resources Non-current liabilities Current liabilities Total liabilities Deferred inflows of resources Net position: Net investment in capital assets Restricted Unrestricted Net position Governmental activities 2017 2016 Business -type activities 2017 2016 Total 2017 2016 $ 151,761,674 $ 145,732,204 $ 11,051,529 $ 9,646,936 $ 162,813,203 $ 155,379,140 145,389,017 141,065,655 47,120,674 48,708,875 192,509,691 189,774,530 297,150,690 286,797,859 58,172,203 58,355,810 355,322,893 345,153,670 47,217,347 9,009,867 1,727,249 490,225 48,944,596 9,500,092 159,902,968 107,398,671 26,255,171 24,516,075 186,158,138 131,914,746 23,181,088 24,880,746 2,189,752 4,635,201 25,370,840 29,515,947 183,084,055 132,279,417 28,444,923 29,151,276 211,528,978 161,430,693 3,069,682 9,809,093 100,242 319,892 3,169,924 10,128,985 108,576,334 101,724,105 35,249,434 33,549,044 143,825,767 135,273,150 60,223,775 60,999,381 - 257,743 60,223,775 61,257,124 (10,585,809) (9,004,273) (3,895,146) (4,431,920) (14,480,955) (13,436,193) $ 158,214,300 $ 153,719,217 $ 31,354,288 $ 29,374,867 $ 189,568,588 $ 183,094,084 The largest portion, approximately seventy-six percent of Deschutes County's net position represents its net investment in capital assets including land, infrastructure, buildings, roads and equipment. These assets are used to provide core services to Deschutes County citizens and are not available for future spending. The portion of net position restricted for use in its long term capital projects, debt service requirements, public safety, roads and health programs totaled $60,224,000 or 32%. Due in part to the significant increase in the pension liability and its impact on net position, the unrestricted category of net position is negative for both governmental activities and business -type activities by a total of $14,481,000. 15 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 Changes in Net Position Governmental activities Business -type activities Total 2017 2016 2017 2016 2017 2016 Program revenues: Charges for services $ 44,224,140 $ 45,486,299 $ 12,886,497 $ 11,773,671 $ 57,110,637 $ 57,259,970 Operating grants and contributions 40,087,120 42,990,874 570,037 53,667 40,657,157 43,044,541 Capital grants and contributions 1,084,073 7,003,177 - - 1,084,073 7,003,177 General revenues: Property taxes 66,491,398 63,126,625 2,368,281 2,555,831 68,859,679 65,682,456 Other taxes 6,408,477 6,068,098 - - 6,408,477 6,068,098 Other 1,351,378 1,643,757 74,094 94,674 1,425,472 1,738,431 Total revenues 159,646,586 166,318,830 15,898,909 14,477,843 175,545,495 180,796,673 Expenses: General government 29,748,439 34,853,689 - - 29,748,439 34,853,689 Public safety 65,276,283 74,941,547 - - 65,276,283 74,941,547 County roads 17,627,051 18,269,586 - - 17,627,051 18,269,586 Health and welfare 39,370,403 43,850,703 - - 39,370,403 43,850,703 Education 263,106 610,125 - - 263,106 610,125 Interest on long-term debt 2,175,774 2,284,295 - - 2,175,774 2,284,295 Solid waste - - 10,028,102 9,272,404 10,028,102 9,272,404 Fair & expo center - - 4,173,908 4,290,630 4,173,908 4,290,630 RV park - - 407,928 477,924 407,928 477,924 Total expenses 154,461,056 174,809,945 14,609,937 14,040,958 169,070,993 188,850,903 Change in net position before transfers 5,185,530 (8,491,115) 1,288,972 436,885 6,474,504 (8,054,230) Transfers (690,447) (513,431) 690,447 513,431 - - Change in net position 4,495,083 (9,004,546) 1,979,419 950,315 6,474,504 (8,054,230) Net position, Beginning of year 153,719,217 162,723,763 29,374,867 28,424,551 183,094,084 191,148,314 Net position, End of year $ 158,214,300 $ 153,719,217 $ 31,354,288 $ 29,374,867 $ 189,568,588 $ 183,094,084 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 The net position of the County increased by $6,475,000 during FY 2017. Discussion and analysis of the changes for both governmental activities and business -type activities are included below. CHANGES DUE TO GOVERNMENTAL ACTIVITIES Governmental activities increased net position by $4,495,000 or 2.9%. The largest contributor to this change was the increase in assessed value increasing property tax collections by 5.0%. Lodging taxes were also up by 5.6%. Operating expenses, excluding the effect of the significant reduction in pension expense, were up just 3.8%. All governmental activities relied on general revenues to support the function. Property taxes make up the largest share at 42% and are levied for general purposes, law enforcement, 9-1-1 operations and 4H/extension services. Fees, fines and charges provide 28% of governmental activities funding including state gas tax and registration fees, law enforcement related fees and fees for services provided by the Clerk's Office and Community Development. Federal and State operating grants and contributions provide significant resources that are used for public safety and health services. CHANGES DUE TO BUSINESS -TYPE ACTIVITIES Business -type activities increased net position by $1,979,000 or 6.7%. The largest contributor was the Fair & Expo Center. Although incurring an operating loss of $1,413,000, the activity increased net position by $1,975,000 due to property taxes levied for the payment of long-term debt, and the receipt of other non-operating revenues and transfers in. The County's solid waste operation experienced a decrease in net position of $172,000 because the revenues from the current rate structure did not cover the full cost of operations. The full cost of operations includes depreciation and accrual of landfill closure and post -closure costs. Operating income for the RV Park was $11,000 however, net position increased by $176,000 due to transferring resources the County received from Oregon's RV apportionment. With business -type activities, only the RV Park activities generated sufficient operating revenues during FY 2017 to cover operating expenses. Approximately 81 % of revenues for business -type activities come from fees, fines and charges for services. Property taxes account for 18% and include the final year of the levy for debt service on the bonds to construct the Fair and Expo Center facility. 17 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 Expenses and Program Revenues - Governmental Activities 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 - 20,000,000 10,000,000 0 91 General Government ■ Expenses 1 Public Safety County Roads Health ■ Program Revenue Services Interest and Fiscal Charges Revenues by Source - Governmental Activities Propert Lodging Taxes, 4% Capital Grants, Contributions, 1% IE: Fines Charges, 28% ating Grants, ibutions, 25% Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 Expenses and Program Revenue - Business -Type Activities RV Park I Fair and Expo Center Solid Waste 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 ■ Expenses ■ Program Revenue Revenues by Source - Business -Type Activities Property Taxes 14% Operating Grants, Contributions 3% 19 Fees, Fines Charges 78% Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 Financial Analysis of the County's Funds Deschutes County uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds: The focus of Deschutes County's governmental funds is to provide information on near-term inflows, near-term outflows and balances of spendable resources. Such information is useful in assessing Deschutes County's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending as of the end of the fiscal year. As of June 30, 2017, $113,649,000 is the reported combined ending fund balance for Deschutes County's governmental funds, a net increase of $5,800,000 from June 30, 2016. Changes, amounts and percentages, in the fund balances of the major governmental funds and of the other governmental funds were: MAJOR o General Fund (including sub -funds): increase of $2,453,000, +12% o Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District (combined): increase of $2,149,000,+19% o Road: decrease of $5,994,000, -34% o Deschutes County 9-1-1 County Service District: decrease of $4,533,000, -30% o Health Services: decrease of $598,000, 4% o PERS Reserve: increase of $2,926,000, +28% NONMAJOR o Nonmajor special revenue: increase of $1,503,000, +10% o Nonmajor debt service: increase of $86,000, +18% o Nonmajor capital project: increase of $7,810,000. This is the first year of this project. Significant Changes in Major Funds General Fund: As of June 30, 2017, the fund balance of Deschutes County's General Fund was $23,827,000. Of this fund balance, $13,344,000 is restricted, committed or assigned for specific use and $10,483,000 is unassigned. One measure of the General Fund's liquidity is the relationship of the fund balance to the Fund's total expenditures. The fund balance as of June 30, 2017, for the General Fund is 101% of total General Fund expenditures and 69% of total General Fund combined expenditures and transfers out. Deschutes County's General Fund balance increased by $2,453,000, 11%, during Fiscal Year 2017. Property tax revenues increased by $1,267,000. In addition, expenditures for the County Clerk exceeded revenues by $5,000. Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District: The County's Sheriff's services are funded through two voter -approved county service district property tax levies. One district levies a tax throughout the County to provide funding for countywide services and the other levies a tax in the unincorporated area to provide funding for Sheriff's services outside city boundaries. Resources from the two law enforcement districts, totaling $29,070,000, were paid to the Sheriff's fund where Sheriff's services expenditures are recorded. Combined fund balances of these three major funds increased by $2,149,000. Property tax revenue increased by 5% over the prior year due to the increase in assessed value. The Sheriff's office also experienced a larger than expected turnover rate ending the year with over 15 vacant positions. These two factors created a much larger ending fund balance than anticipated. Road: The fund balance of the Road fund decreased by $5,994,000, or 34% during FY 2017. During FY 2017, $8,068,000 was transferred from the Road Department's Operating Fund to a capital project fund. Adjusting for the effect of the transfer, the fund balance increased by $2,074,000. The Road fund receives the majority of its revenue from the State of Oregon gas tax, vehicle registrations and from the federal secure rural schools program. Motor vehicle revenues in FY 2017 were $444,000 more than received in FY 2016. The fund balance will be used in the future to maintain county road systems. OR Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 Deschutes County 9-1-1 County Service District: The fund balance of Deschutes County 9-1-1 decreased by $4,533,000. This decrease in fund balance was anticipated as the District expended resources for the upgrade of its communication systems (both radio and telephone) and CAD system. Operating revenues exceeded operating expenditures by $1,234,000 and $5,767,000 was expended on these major capital improvements. The District's operations are supported primarily by property taxes which, due to the increase in assessed value, increased by 5.3% during FY 2017. Health Services: Fund balance for the Health Services Fund decreased by $598,000 or 3.6%. This was anticipated and is projected to continue to decline over the next several years given the expected changes to the delivery of health services in Oregon. PERS Reserve: The resources of the PERS Reserve have been increasing since FY 2015. Most of the FY 2017 increase is due to the transfer of $2,000,000 from the General Fund. The PERS Reserve fund has been reported in FY 2017 as a major fund because the assets exceed 10% of the total reported governmental assets. The combined fund balances of the County's non -major special revenue funds, increased by $1,503,000. The Community Development Department's fund balance increased by $1,220,000 due to the continued strength in real estate development. The County assesses fees for future transportation requirements and this contributed $661,000 to the fund balance of the Countywide Transportation SDC Improvement fund during FY 2017. The resources of the debt service fund increased by $86,000 during the fiscal year as the rentals received on the properties financed with debt exceeded the current year debt service expenditures. The County established a capital project fund in FY 2017 with $8,068,000 of resources provided by a transfer from the Road Department, a major fund. A total of $875,000 was expended during FY 2017 on various significant road projects. Proprietary funds: The information presented in the proprietary funds statement is similar to that in the government -wide financial statements, but provides greater detail. At June 30, 2017, the net position of the Solid Waste Department was $11,976,000, a decrease of $172,000. This enterprise activity is operating close to break-even, however. With a continued strong local economy, projections show the Solid Waste Department revenues will be adequate to cover the cost of current operations. The unrestricted net position increased by $260,000. The operation of the Solid Waste Department provides the resources to be used in future years for the closure and post -closure costs associated with the landfills. The estimate for post closure liability at June 30, 2017 is of $11,499,000. The June 30, 2017 net position of the Fair and Expo Center was $18,366,000, an increase of $1,975,000. The majority of the increase in net position resulted from tax revenues that were used to retire the general obligation bond. The County opened its RV Park in July 2007. After an initial near -capacity usage during summer 2007, the effects of the recession have negatively impacted the operations; however, it is expected that with continued focus on marketing efforts and an improving economy, the RV Park will continue to be a profitable enterprise. The unrestricted net position at June 30, 2017, was $1,012,000, an increase of $176,000. General Fund Budgetary Highlights There were seven budget adjustments to the General Fund's original budget during FY 2017. Four of these, totaling $528,591, were transfers of appropriation to other County funds. The other three were transfers for a net increase of amount appropriated for personnel expenditures in the General Fund by $54,678. The County's assumptions for estimating revenues are conservative. The General Fund's actual revenues were $324,000 more than estimated. The variance is due to property taxes, charges for services and state payments in excess of amounts estimated. The variance between appropriations and expenditures was $888,000, approximately 6.0% of final appropriations. Factors contributing to this variance include unfilled positions in several departments and expenditures in the Clerk's Office for the November 2016 election less than budgeted. 21 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 Capital Asset and Debt Administration Capital Assets. Deschutes County's investment in capital assets for its governmental and business -type activities as of June 30, 2017, was $192,510,000, net of accumulated depreciation. The book value of the depreciable assets is 55% of historical cost. This investment in capital assets includes land, buildings, equipment and infrastructure such as roads and bridges. Additional information on Deschutes County's capital assets is included in Note 3.1) on pages 51-53 of this report. Long-term debt. As of June 30, 2017, Deschutes County's outstanding bonded debt was $58,611,000, all of which is backed by the full faith and credit of the County. Deschutes County's bonded debt decreased by $6,401,000 during the fiscal year due to scheduled debt repayments. The County made the final payment on its only outstanding general obligation bond on December 1, 2016. The bond was issued in 1996 and provided the resources to building the County's Fair and Expo Center. Moody's Investors Services has assigned a credit rating of Aa3 to Deschutes County's Full Faith & Credit obligations and a credit rating of Aa2 to its general obligation bonds. These ratings were confirmed in FY 2017. State statutes limit the amount of general obligation debt a governmental entity may issue to 2% of its real market value. With real market value of $32.4 billion, the current debt limitation for Deschutes County is $647,000,000. The County has no general obligation debt at June 30, 2017. Additional information on Deschutes County's long-term debt is included in Note 3.17 on pages 53-55 of this report. Key Economic Factors and Budget Information for the Future The most recent Actuarial valuation for the State of Oregon Public Employees Retirement System (PERS) was received by employers in October 2016 and included employer rates to be in effect July 1, 2017 through June 30, 2019. The FY 2018 impact of this increase is anticipated to be approximately $2,000,000. PERS actuaries anticipate additional significant employer rate increases effective July 1, 2019 and July 1, 2021. After that, PERS costs are expected to remain at the higher levels for several years. The County established a PERS Reserve fund in 2004. The balance at June 30, 2017 was $13,247,000. The purpose of the fund is to provide relief to departments as PERS rates increase. The County's FY 2018 budget includes a General Fund transfer to the PERS Reserve of $2,000,000. In addition, The FY 2018 budget anticipates a drawdown of the PERS reserve in the amount of $1,200,000 to partially offset increasing PERS charges to departments. This is the first step in a series of PERS reserve drawdowns anticipated by the County's PERS strategy over the next six to eight years. Fla Governmental activities Business -type activities Total 6/30/2017 6/30/2016 6/30/2017 6/30/2016 6/30/2017 6/30/2016 General Obligation Bonds $ - $ - $ - $ 2,595,000 $ - $ 2,595,000 Oregon Local Gov't Pension Bonds 9,899,413 10,235,315 - - 9,899,413 10,235,315 Full Faith & Credit Obligations 36,988,798 39,548,053 11,722,802 12,633,947 48,711,600 52,182,000 Total $46,888,211 $49,783,368 $11,722,802 $15,228,947 $58,611,013 $65,012,315 Deschutes County's bonded debt decreased by $6,401,000 during the fiscal year due to scheduled debt repayments. The County made the final payment on its only outstanding general obligation bond on December 1, 2016. The bond was issued in 1996 and provided the resources to building the County's Fair and Expo Center. Moody's Investors Services has assigned a credit rating of Aa3 to Deschutes County's Full Faith & Credit obligations and a credit rating of Aa2 to its general obligation bonds. These ratings were confirmed in FY 2017. State statutes limit the amount of general obligation debt a governmental entity may issue to 2% of its real market value. With real market value of $32.4 billion, the current debt limitation for Deschutes County is $647,000,000. The County has no general obligation debt at June 30, 2017. Additional information on Deschutes County's long-term debt is included in Note 3.17 on pages 53-55 of this report. Key Economic Factors and Budget Information for the Future The most recent Actuarial valuation for the State of Oregon Public Employees Retirement System (PERS) was received by employers in October 2016 and included employer rates to be in effect July 1, 2017 through June 30, 2019. The FY 2018 impact of this increase is anticipated to be approximately $2,000,000. PERS actuaries anticipate additional significant employer rate increases effective July 1, 2019 and July 1, 2021. After that, PERS costs are expected to remain at the higher levels for several years. The County established a PERS Reserve fund in 2004. The balance at June 30, 2017 was $13,247,000. The purpose of the fund is to provide relief to departments as PERS rates increase. The County's FY 2018 budget includes a General Fund transfer to the PERS Reserve of $2,000,000. In addition, The FY 2018 budget anticipates a drawdown of the PERS reserve in the amount of $1,200,000 to partially offset increasing PERS charges to departments. This is the first step in a series of PERS reserve drawdowns anticipated by the County's PERS strategy over the next six to eight years. Fla Deschutes County, Oregon Management's Discussion and Analysis June 30, 2017 The County's Assessed Valuation of Taxable Property increased from Fiscal Year 2017 to Fiscal Year 2018 by 5.7% to approximately $23.0 billion and this growth in assessed value is expected to continue. The annual property tax levy is based on the assessed value times a tax rate, not to exceed the permanent rate. For FY 2018, the County's general levy will be at a rate that is $.03 per $1,000 of assessed value less than in prior years. This decision, proposed by the County's budget committee, and approved by the County Commissioners, was will reduce the burden on taxpayers by an estimated $650,000 for FY 2018. Requests for Information This financial report is designed to provide a general overview to those parties interested in Deschutes County's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Deschutes County Finance Department, P.O. Box 6005, 1300 NW Wall Street, Suite 200, Bend, OR 97708. 23 Basic Financial Statements As of and for the Year Ended June 30, 2017 Deschutes County, Oregon This page left intentionally blank. Deschutes County, Oregon Statement of Net Position June 30, 2017 See notes to financial statements Totals may not add due to rounding Governmental Business - Type Activities Activities Total ASSETS Current assets: Cash and cash equivalents $ 26,067,584 $ 1,939,118 $ 28,006,702 Investments, at fair value; plus accrued interest 111,702,425 8,266,327 119,968,752 Taxes receivable 2,481,341 - 2,481,341 Accounts receivable 4,303,540 618,372 4,921,912 Notes and contracts receivable, net of allowance 4,889,456 - 4,889,456 Assessments receivable 209,744 - 209,744 Inventory 1,941,932 25,933 1,967,865 Prepaid expenses 165,652 201,779 367,431 Total current assets 151,761,674 11,051,529 162,813,203 Capital assets: Capital assets not being depreciated: Land 13,470,541 1,924,037 15,394,578 Construction in progress 7,422,584 1,106,337 8,528,921 Capital assets net of accumulated depreciation: Infrastructure 50,637,357 - 50,637,357 Land improvements 2,062,693 19,002,254 21,064,947 Building and improvements 62,308,325 22,353,905 84,662,230 Equipment and vehicles 8,897,585 2,702,996 11,600,582 Intangible assets 589,932 31,145 621,077 Total capital assets 145,389,017 47,120,674 192,509,691 Total assets 297,150,690 58,172,203 355,322,893 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - refunding 898,052 214,667 1,112,720 Deferred outflows - pension 46,319,295 1,512,582 47,831,877 Total deferred outflows of resources 47,217,347 1,727,249 48,944,597 See notes to financial statements Totals may not add due to rounding Deschutes County, Oregon Statement of Net Position June 30, 2017 LIABILITIES Current liabilities: Accounts payable and other current liabilities Accrued interest Unearned revenues Current portion of noncurrent liabilities Total current liabilities Noncurrent liabilities: Compensated leave Net OPEB obligation Net pension liability Bonds and notes payable (net of unamortized premiums and discounts) Accrued claims payable Accrued landfill closure and postclosure costs Less current portion of noncurrent liabilities Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Capital projects Debt service Public safety Road Health services Unrestricted Total net position See notes to financial statements Totals may not add due to rounding 041 Governmental Business - Type Activities Activities Total $ 5,933,936 $ 572,827 $ 6,506,763 158,322 21,434 179,757 2,565,795 315,766 2,881,561 14,523,035 1,279,724 15,802,758 23,181,088 2,189,752 25,370,840 8,738,737 406,465 9,145,202 21,320,082 805,148 22,125,230 90,438,270 2,953,306 93,391,575 47,610,148 11,871,240 59,481,389 6,318,765 - 6,318,765 - 11,498,736 11,498,736 (14,523,035) (1,279,724) (15,802,758) 159,902,968 26,255,171 186,158,138 183,084,055 28,444,923 211,528,978 3,069,682 100,242 3,169,924 3,069,682 100,242 3,169,924 108,576,334 35,249,434 143,825,767 7,809,685 - 7,809,685 399,784 - 399,784 24,123,538 - 24,123,538 11,677,309 - 11,677,309 16,213,459 - 16,213,459 (10,585,809) (3,895,146) (14,480,955) $ 158,214,300 $ 31,354,288 $ 189,568,588 Deschutes County, Oregon Statement of Activities Year Ended June 30, 2017 Business -type: Solid Waste 10,028,102 9,791,844 - - (236,258) Net (Expense) Revenue and Fair and Expo Center 4,173,908 2,710,373 532,166 Program Revenues (931,368) Changes in Net Position RV Park 407,928 Fees, Fines and Operating Capital Grants 14,222 Total business -type activities 14,609,937 12,886,497 570,037 - Charges for Grants and and Governmental Business -type Function/Program Expenses Services Contributions Contributions Activities Activities Total Governmental General government $ 29,748,439 $ 16,435,374 $ 3,168,649 $ - $ (10,144,416) $ $ (10,144,416) Public safety 65,276,283 6,765,336 6,518,235 1,084,073 (50,908,639) (50,908,639) County roads 17,627,051 19,082,452 - - 1,455,401 1,455,401 Health services 39,370,403 1,940,978 30,137,317 - (7,292,108) (7,292,108) Education 263,106 - 262,919 - (187) (187) Interest and fiscal charges 2,175,774 - - - (2,175,774) (2,175,774) Total governmental activities 154,461,056 44,224,140 40,087,120 1,084,073 (69,065,723) (69,065,723) Business -type: Solid Waste 10,028,102 9,791,844 - - (236,258) (236,258) Fair and Expo Center 4,173,908 2,710,373 532,166 - (931,368) (931,368) RV Park 407,928 384,279 37,871 - 14,222 14,222 Total business -type activities 14,609,937 12,886,497 570,037 - - (1,153,403) (1,153,403) Total $ 169,070,993 $ 57,110,637 $ 40,657,157 $ 1,084,073 $ (69,065,723) $ (1,153,403) $ (70,219,127) General revenues: Taxes: Property taxes, levied for general purposes 35,363,260 35,363,260 Property taxes, levied for sheriff services 31,128,138 31,128,138 Property taxes, levied for bonded debt - 2,368,281 2,368,281 Transient room tax 6,408,477 - 6,408,477 Investment earnings 1,351,378 74,094 1,425,472 Transfers (690,447) 690,447 - Total general revenues and transfers 73,560,806 3,132,822 76,693,630 Change in net position 4,495,083 1,979,419 6,474,504 See notes to financial statements Totals may not add due to rounding Net position - Beginning of year Net position - Ending of year M61 153,719,217 29,374,867 183,094,084 $ 158,214,300 $ 31,354,288 $ 189,568,588 This page left intentionally blank. Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2017 See notes to financial statements Totals may not add due to rounding O Countywide Law Rural Law Enforcement Enforcement General Fund Sheriff District District Road ASSETS Cash and cash equivalents $ 4,979,335 $ 47,100 $ 1,303,210 $ 1,230,666 $ 2,008,273 Investments, at fair value; plus accrued interest 21,336,235 202,328 5,585,290 5,274,807 8,602,810 Taxes receivable 776,622 - 543,754 246,363 - Accounts receivable 450,858 323,468 - - 406,497 Notes and contracts receivable 3,971,599 - - - - Assessments receivable - - - - 209,744 Inventory - - - - 1,941,932 Total assets $ 31,514,649 $ 572,895 $ 7,432,254 $ 6,751,837 $ 13,169,255 LIABILITIES Liabilities: Accounts payable $ 1,162,483 $ 527,975 $ - $ - $ 1,282,202 Deposits 4,341 - - - - Unearned revenue 2,315,410 44,920 - - - Total liabilities 3,482,234 572,895 - - 1,282,202 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 703,103 - 492,683 223,138 - Unavailable revenue - special assessments - - - - 209,744 Unavailable revenue - contracts of sale 3,502,579 - - - - Total deferred inflows of resources 4,205,682 - 492,683 223,138 209,744 FUND BALANCES Nonspendable 469,020 - - - 1,941,932 Restricted - - 6,939,571 6,528,699 9,735,377 Committed 7,505,074 - - - - Assigned 5,369,619 - - - - Unassigned 10,483,020 - - - - Total fund balances 23,826,733 - 6,939,571 6,528,699 11,677,309 Total liabilities, deferred inflows of resources and fund balances $ 31,514,649 $ 572,895 $ 7,432,254 $ 6,751,837 $ 13,169,255 See notes to financial statements Totals may not add due to rounding O Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2017 FUND BALANCES Nonspendable Deschutes 3,328,808 Restricted Other Total Committed County 9-1-1 Health PERS Governmental Governmental Unassigned Co Sery Dist Services Reserve Funds Funds ASSETS Cash and cash equivalents $ 1,868,346 $ 3,013,090 $ 2,505,981 $ 4,469,565 $ 21,425,565 Investments, at fair value; plus accrued interest 8,007,991 12,903,810 10,740,987 19,151,823 91,806,080 Taxes receivable 194,907 - - 719,695 2,481,341 Accounts receivable 1,087,445 1,699,773 - 232,195 4,200,235 Notes and contracts receivable - - - 917,857 4,889,456 Assessments receivable - - - - 209,744 Inventory - - - - 1,941,932 Total assets $ 11,158,689 $ 17,616,672 $ 13,246,968 $ 25,491,134 $ 126,954,352 LIABILITIES Liabilities: Accounts payable $ 326,582 $ 1,326,203 $ - $ 794,806 $ 5,420,251 Deposits - 227 - - 4,567 Unearned revenue - 76,783 - 124,114 2,561,227 Total liabilities 326,582 1,403,213 - 918,920 7,986,046 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 176,839 - - 11,051 1,606,814 Unavailable revenue - special assessments - - - - 209,744 Unavailable revenue - contracts of sale - - - - 3,502,579 Total deferred inflows of resources 176,839 - - 11,051 5,319,137 FUND BALANCES Nonspendable - - - 917,857 3,328,808 Restricted 10,655,268 16,213,459 - 22,862,597 72,934,971 Committed - - 13,246,968 780,709 21,532,751 Assigned - - - - 5,369,619 Unassigned - - - - 10,483,020 Total fund balances 10,655,268 16,213,459 13,246,968 24,561,163 113,649,169 Total liabilities, deferred inflows of resources and fund balances $ 11,158,689 $ 17,616,672 $ 13,246,968 $ 25,491,134 $ 126,954,352 See notes to financial statements Totals may not add due to rounding F�9 Deschutes County, Oregon Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Year Ended June 30, 2017 Total fund balances for governmental funds $ 113,649,169 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Deferred Outflows of Resources Defined Benefit Pension Plan Debt refunding costs Internal service funds are used by the County to charge the cost of insurance, facilities, administration, finance, legal, human resources and information technology to County funds. The net position of the internal service funds is included in governmental activities in the statement of net position. Some of the County's receivables will be collected after year-end, but are not available soon enough to pay for the current year's expenditures and, therefore, are reported as deferred inflows of resources in the funds. Noncurrent liabilities applicable to the County's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. Interest on bonds and notes payable is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities, current and noncurrent, are reported in the statement of net position. Balances at June 30, 2017, are: Accrued interest on bonds and notes payable Bonds and notes payable Unamortized premium and discount on bonds Net OPEB obligation Net pension liability Compensated leave Noncurrent liabilities and accrued interest Deferred inflows of resources Defined benefit pension plan Net position of governmental activities See notes to financial statements Totals may not add due to rounding U11 $ (158,322) (46,888,211) (721,937) (19,518,418) (82,826,308) (7,771,549) 144,217,640 42,420,722 898,052 12,405,641 5,319,137 (157,884,746) (2,811,316) $ 158,214,300 This page left intentionally blank. Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Special assessments Investment earnings Rents Intergovernmental Charges for services Contributions and donations Payments on contracts of sale Other Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Education Debt service: Principal payments Interest Trustee fees Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Countywide Law Rural Law Enforcement Enforcement General Fund Sheriff District District Road $ 27,167,326 $ - $ 21,451,704 $ 9,618,081 $ - 33,000 - - - - 6,234 562,749 - - - - - - - 70,655 368,360 - 83,147 66,144 82,437 619,563 - - - 1,068 4,071,163 32,641,416 - - 15,900,962 2,430,314 706,586 - - 1,751,059 50,645 64,794 - - - 428,713 - - - - 38,411 192,662 - - - 35,213,726 34,168,206 21,534,851 9,684,225 17,806,180 15,120,625 - - - - 6,209,564 36,153,193 20,436,277 8,633,860 - - - - - 14,857,100 403,775 - - - - 1,823,006 893,510 - - 875,395 23,556,971 37,046,703 20,436,277 8,633,860 15,732,495 11,656,756 (2,878,496) 1,098,574 1,050,364 2,073,685 Transfers in 1,526,169 3,151,787 - - - Transfers out (10,730,412) (273,291) - - (8,067,643) Total other financing sources (uses) (9,204,243) 2,878,496 - - (8,067,643) Net change in fund balances 2,452,513 - 1,098,574 1,050,364 (5,993,958) Fund balances - Beginning of year 21,374,220 - 5,840,997 5,478,335 17,671,267 Fund balances - End of year $ 23,826,733 $ - $ 6,939,571 $ 6,528,699 $ 11,677,309 See notes to financial statements Totals may not add due to rounding UPA Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Special assessments Investment earnings Rents Intergovernmental Charges for services Contributions and donations Payments on contracts of sale Other Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Education Debt service: Principal payments Interest Trustee fees Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year See notes to financial statements Totals may not add due to rounding Deschutes 26,361,777 9,121,528 - - 6,343,189 Other Total County 9-1-1 Health PERS Governmental Governmental Co Sery Dist Services Reserve Funds Funds $ 7,607,481 $ - $ - $ 472,249 $ 66,316,840 - - - 6,408,477 6,408,477 - 164,203 - 1,607,199 1,804,402 - - - 1,031,667 1,600,649 - - - - 70,655 98,202 129,594 98,805 249,525 1,176,213 - 1,500 - 1,244,466 1,866,596 2,130,136 29,068,925 - 8,500,682 92,313,282 515,925 2,945,939 827,835 9,117,550 18,295,208 - 291,000 - 4,299 410,737 - - - - 428,713 3,405 - - - 234,477 10,355,148 32,601,160 926,640 28,636,112 190,926,249 - - 850 11,240,302 26,361,777 9,121,528 - - 6,343,189 86,897,612 - - - 1,156,240 16,013,340 - 37,302,409 - 1,150,793 38,856,976 - - - 263,106 263,106 5,766,909 135,653 14,888,437 37,438,062 (4,533,288) (4,836,901) - 2,895,157 2,895,157 - 2,151,095 2,151,095 - 2,500 2,500 - 881,823 10,376,297 850 26,084,205 183,817,859 925,790 2,551,907 7,108,389 - 4,684,193 2,000,000 11,922,391 23,284,540 - (445,740) - (5,076,091) (24,593,177) - 4,238,453 2,000,000 6,846,300 (1,308,637) (4,533,288) (598,448) 2,925,790 9,398,207 5,799,752 15,188,557 16,811,908 10,321,178 15,162,956 107,849,417 $ 10,655,268 $ 16,213,459 $ 13,246,968 $ 24,561,163 $ 113,649,169 33 Deschutes County, Oregon Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2017 Net change in fund balances - total governmental funds $ 5,799,752 Financial resources provided that are not revenues Payments on land sale contracts (496,397) Financial resources used that are not expenses Repayments on long-term debt 2,895,157 Acquisition of capital assets 12,582,481 15,477,637 Other adiustments: non-cash revenues and expenses and chances in accruals and deferrals Depreciation and amortization expense (8,802,677) Pension Expense (9,150,245) Contributions to pension plan, subsequent to measurement date 189,523 Amortization of deferred debt refunding cost (73,590) Amortization of bond premium / (discount), net 43,199 Book value of capital assets sold, retired or transferred (107,275) Decrease in accrued interest payable 8,212 Decrease in unavailable property taxes 174,559 Increase in net OPEB obligation (1,637,218) Increase in compensated leave (184,417) (19,539,929) Increase in Internal service fund net position 3,254,019 Total Net Adjustments - year ended June 30, 2017 (1,304,670) Change in net position of governmental activities - year ended June 30, 2017 $ 4,495,083 See notes to financial statements Totals may not add due to rounding M,I This page left intentionally blank. ASSETS Current assets: Cash and cash equivalents Investments, plus accrued interest Accounts receivable Inventory Prepaid expenses Total current assets Noncurrent assets: Capital assets: Capital assets not being depreciated: Land Construction in progress Capital assets net of accumulated depreciation: Land improvements Buildings and improvements Equipment and vehicles Intangible Total capital assets Total assets Deschutes County, Oregon Proprietary Funds Statement of Net Position June 30, 2017 Enterprise Funds Fair & Expo Internal Solid Waste Center RV Park Total Service Funds $ 1,692,639 $ 187,281 $ 59,199 $ 1,939,118 $ 4,642,019 7,239,885 773,994 252,447 8,266,327 19,896,345 608,768 6,657 2,948 618,372 103,305 - 25,933 - 25,933 - - 201,779 - 201,779 165,652 9,541,291 1,195,644 314,594 11,051,529 24,807,321 1,791,352 132,685 1,924,037 1,106,337 - 1,106,337 936,781 12,287,284 4,975,124 1,739,846 19,002,254 28,835 7,561,324 14,069,959 722,623 22,353,905 - 2,298,408 404,589 - 2,702,996 205,761 31,145 - - 31,145 - 25,075,849 19,582,357 2,462,468 47,120,674 1,171,377 34,617,140 20,778,001 2,777,062 58,172,203 25,978,698 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - refunding 210,229 4,439 - 214,667 - Deferred outflows - pension 901,622 610,960 1,512,582 3,898,573 Total deferred outlows of resources 1,111,851 615,398 1,727,249 3,898,573 LIABILITIES Current liabilities: Accounts payable Accrued interest Unearned revenues Current portion of noncurrent liabilities Total current liabilities Noncurrent liabilities: Compensated leave Net OPEB obligation Net pension liability Bonds (net of unamortized premiums and discounts) Accrued claims payable Accrued landfill closure and postclosure costs Less current portion of non-current liabilities Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position See notes to financial statements Totals may not add due to rounding 444,247 106,556 22,024 572,827 513,685 17,226 1,461 2,748 21,434 - - 314,678 1,088 315,766 - 855,222 233,619 190,883 1,279,724 5,016,117 1,316,695 656,314 216,743 21189,752 51529,801 227,555 525,096 1,760,410 9,219,521 178,910 280,051 1,192,896 406,465 967,186 805,148 1,801,664 2,953,306 7,611,962 912,201 1,739,518 11, 871,240 - - - 6,318,765 11,498,736 - - 11,498,736 - (855,222) (233,619) (190,883) (1,279,724) (5,016,117) 22,376,096 2,330,440 1,548,635 26,255,171 11,683,460 23,692,791 21986,754 11765,377 28,444,923 17,213,261 59,752 40,490 100,242 258,368 59,752 40,490 100,242 258,368 15,856,328 18,670,156 722,951 35,249,434 1,163,508 (3,879,880) (304,000) 288,734 (3,895,146) 11,242,133 $ 11,976,447 $ 18,366,155 $ 1,011,685 $ 31,354,288 $ 12,405,641 061 Deschutes County, Oregon Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2017 OPERATING EXPENSES Personnel 2,298,368 Enterprise Funds - 3,680,214 9,483,778 Materials and services Fair & Expo 2,043,277 Internal 6,744,826 Solid Waste Center RV Park Total Service Funds OPERATING REVENUES 808,364 - Depreciation 2,245,431 Charges for services $ 9,739,930 $ 2,710,373 $ 384,279 $ 12,834,583 $ 36,665,718 Miscellaneous 51,914 - - 51,914 - Total operating revenues 9,791,844 2,710,373 384,279 12,886,497 36,665,718 OPERATING EXPENSES Personnel 2,298,368 1,381,845 - 3,680,214 9,483,778 Materials and services 4,456,701 2,043,277 244,848 6,744,826 24,625,828 Landfill closure/postclosure care costs 808,364 - - 808,364 - Depreciation 2,245,431 697,927 128,518 3,071,876 95,452 Total operating expenses 9,808,864 4,123,049 373,366 14,305,280 34,205,059 Operating income (loss) (17,020) (1,412,676) 10,913 (1,418,783) 2,460,660 NONOPERATING REVENUES (EXPENSES) Grants - 532,166 37,871 570,037 - Property taxes - 2,368,281 - 2,368,281 - Investment earnings 64,672 7,146 2,275 74,094 175,170 Interest expense (219,238) (50,858) (34,561) (304,657) - Total nonoperating revenues (expenses) (154,566) 2,856,735 5,585 2,707,755 175,170 Income (loss) before transfers OTHER FINANCING SOURCES (USES) Transfers in Transfers out Net other financing sources (uses) Change in net position Net position - Beginning of year Net position - End of year See notes to financial statements Totals may not add due to rounding (171,586) 1,444,059 16,498 1,288,972 2,635,829 530,447 160,000 690,447 919,450 - - - (301,260) 530,447 160,000 690,447 618,190 (171,586) 1,974,506 176,498 1,979,419 3,254,019 12,148,033 16,391,649 835,187 29,374,867 9,151,622 $ 11,976,447 $ 18,366,155 $ 1,011,685 $ 31,354,288 $ 12,405,641 UFA Deschutes County, Oregon Proprietary Funds Statement of Cash Flows Year Ended June 30, 2017 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES 5,581 Enterprise Funds 55,898 57,036 - Property taxes Fair & Expo 2,441,081 - Internal 116,849 Solid Waste Center RV Park Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Transfers in - 530,447 160,000 690,447 Receipts from customers $ 9,845,111 $ 2,726,289 $ 387,640 $ 12,959,039 $ 36,722,764 Payments to employees (2,049,320) (1,209,840) - (3,259,160) (8,795,845) Payments to suppliers (4,397,681) (2,035,505) (252,349) (6,685,534) (27,121,988) Net cash provided (used) by operating activities 3,398,110 (519,056) 135,291 3,014,345 804,931 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES 5,581 (2,948) 55,898 57,036 - Property taxes - 2,441,081 - 2,441,081 116,849 Grants - 529,466 37,871 567,337 - Transfers in - 530,447 160,000 690,447 919,450 Transfers out - - - - (301,260) Net cash provided (used) by noncapital financing activities - 3,500,994 197,871 3,698,865 618,190 43,057 - 83,393 121,161 808,364 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES - 808,364 - $ 3,398,110 $ Acquisition and construction of capital assets (1,384,408) (96,247) - (1,480,655) (746,288) Proceeds from sale of capital assets - 2,700 - 2,700 Principal paid on capital debt (639,934) (2,678,788) (187,424) (3,506,145) Interest paid on capital debt (218,578) (57,673) (35,312) (311,563) Net cash provided (used) by capital and related financing activities (2,242,920) (2,830,008) (222,736) (5,295,663) (746,288) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments Interest Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances - Beginning of year Balances - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense Change in operating accruals Receivables Prepaid expenses and inventory Defined benefit pension accounts Accounts payable Claims payable Unearned revenues Compensated leave OPEB obligation Accrued closure / postclosure Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments See notes to financial statements Totals may not add due to rounding (1,288,520) (159,845) (99,009) (1,547,373) (1,613,917) 93,251 10,060 21924 106,235 266,094 (1,195,268) (149,785) (96,084) (1,441,138) (1,347,823) (40,078) 2,145 14,341 (23,592) (670,991) 1,732,716 185,136 44,857 1,962,710 51313,010 $ 1,692,639 $ 187,281 $ 59,199 $ 1,939,118 $ 4,642,019 $ (17,020) $ (1,412,676) $ 10,913 $ (1,418,783) $ 2,460,660 2,242,411 697,927 128,518 3,068,856 95,452 53,266 5,581 (2,948) 55,898 57,036 - (41,653) - (41,653) (128,191) 198,355 116,849 - 315,203 641,393 62,042 45,971 426 108,438 (204,646) - - - - (2,105,263) - 10,335 (1,618) 8,717 10,358 15,554 - 25,912 (132,671) 40,336 43,057 - 83,393 121,161 808,364 - - 808,364 - $ 3,398,110 $ (519,056) $ 135,291 $ 3,014,345 $ 804,931 $ (34,319) $ (3,601) $ (1,031) $ (38,951) $ (100,201) Deschutes County, Oregon Fiduciary Funds Statement of Assets and Liabilities June 30, 2017 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Accounts receivable Total assets LIABILITIES Accounts payable Due to other governments Due to others Total liabilities See notes to financial statements Totals may not add due to rounding M Agency Fund $ 1,524,911 6,535,985 553,805 $ 8,614,701 $ 923,686 2,777,294 4,913,721 $ 8,614,701 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Note 1— Summary of Significant Accounting Policies A. Reporting Entity Deschutes County is a municipal corporation governed by three Commissioners, elected at -large. The accompanying financial statements present the activities of Deschutes County (the County), and its four component units, entities for which the County is considered to be financially accountable and for which a financial benefit or burden exists. Blended component units, although legally separate entities, are, in substance, part of the County's operations. The Board of County Commissioners is the governing body for each component unit. Following is a brief description of each blended component unit included within the reporting entity. Countywide Law Enforcement District (District #1) — The District contracts with Deschutes County for law enforcement services that are provided to all County residents. Rural Law Enforcement District (District #2) — The District contracts with Deschutes County for patrol services in those portions of Deschutes County not serviced by city or special district law enforcement departments. Deschutes County 9-1-1 Service District — Operates the County 9-1-1 call center. Deschutes County Extension and 4-H Service District — Provides resources for support staff and a program coordinator for Oregon State University Extension Service. The component units, described above, have been included in these financial statements. Component units' individual audited financial statements are issued and are available in the Deschutes County Finance Department. There are other districts within the County that have not been included as component units of the County. The Board of County Commissioners appoints the boards of special road districts and vector districts; however, the County Commission does not exercise any administrative or financial control and the County does not have a financial benefit or burden due to these districts. These districts are autonomous Oregon municipal corporations and are not considered component units of Deschutes County. B. Government -wide and Fund Financial Statements The government -wide financial statements, consisting of the Statement of Net Position and the Statement of Activities, report information on all non -fiduciary activities of the County and its component units. The effect of interfund activity has been removed from these statements, except where necessary to account for the cost of a program. Governmental activities, which are supported primarily by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. Fiduciary funds are excluded from the government -wide financial statements. Major individual governmental and enterprise funds are reported in separate columns in the fund financial statements. Deschutes County, Oregon Notes to Financial Statements June 30, 2017 C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in financial statements. The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized in the year for which they are levied. Non-exchange transactions, in which the County gives, or receives, value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements and donations. Grants and similar items are recognized as revenue if all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the fiscal year or soon enough after to pay liabilities of the current fiscal year. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the fiscal year. Expenditure - driven grants are recorded as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service, compensated absences, certain post -employment benefits, and claims and judgments expenditures are recorded at the time such payment is due. Capital asset transactions are reported as expenditures in governmental funds. Proceeds of general long-term debt and financing from capital leases are reported as other financing sources. Property taxes, transient room taxes, licenses and interest associated with the current fiscal year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. Only the portion of special assessments receivable, due within the current fiscal year, is considered to be susceptible to accrual as revenue of the current fiscal year. All other revenue items are considered to be measureable and available only when cash is received by the County. Fiduciary funds, which are all agency funds, have no measurement focus, but utilize the accrual basis of accounting for purposes of asset and liability recognition. The accounts of the County are organized on a fund basis. A fund is an independent fiscal and accounting entity with a self -balancing set of accounts recording assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues and expenditures. Separate statements for each fund category — governmental, proprietary or fiduciary — are presented. The County also maintains certain additional sub -funds for its own specific management needs. These sub -funds are combined into the appropriate fund for financial statement purposes as required by accounting principles generally accepted in the United States of America. Major Funds Governmental Funds — the County reports the following major governmental funds: General Fund. The financial resources of the general government are accounted for in the General Fund and in sub -funds of the General Fund, except those that are accounted for in another fund. The General Fund's primary revenue sources are property taxes, Federal and State of Oregon payments and fees for services. The major expenditure category is general government services. Sheriff's Office. The revenues generated by Sheriffs activities and payments received, pursuant to intergovernmental agreements with the Countywide Law Enforcement District and Rural Law Enforcement District, are accounted for in the Deschutes County Sheriff s Fund. Activities of the Sheriffs Office include corrections, patrol, investigations, records, search and rescue activities, court security, and administration. Countywide Law Enforcement District (District #1). Property taxes levied by the Countywide Law Enforcement District are accounted for in this fund. The expenditures are limited to payments made to Deschutes County, pursuant to an intergovernmental agreement, for countywide law enforcement services. C!1 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Rural Law Enforcement District (District #2). Property taxes levied by the Rural Law Enforcement District are accounted for in this fund. The expenditures are limited to payments made to Deschutes County, pursuant to an intergovernmental agreement for patrol services in those portions of Deschutes County not served by city or special service district law enforcement departments. Road. The financial resources, primarily Federal Forest Receipts, Federal Payment in Lieu of Taxes and State Motor Vehicle revenue, of the County's Road Department are used for the building, repair and maintenance of the County's roads, bridges, culverts, street lighting and drainage. Deschutes County 9-1-1 County Service District. All resources, including property taxes, arising from the 9-1-1 activities, the County's emergency call center, are accounted for in this fund. Health Services. The financial resources, primarily fees for services and grants from the State of Oregon and federal government, are used to provide public and mental health services and counseling. PERS Reserve. Charges to County's operating funds and General Fund transfers to maintain a reserve for increases in the PERS rate. Enterprise Funds - The County operates three enterprise activities, two of which have been determined to be major. Solid Waste accounts for the operations of the County's sanitary landfill and transfer station sites. Fair & Expo Center accounts for the operations of the County's Fair & Expo Center, including the annual county fair and the collection of property taxes to pay the debt service on the general obligation bonds. The bonds were issued in FY 1997 to finance the construction of the fairgrounds. The final payment on the general obligation bonds was made December 1, 2016. Additionally, the County reports the following fund types: Internal service funds account for the facilities, administrative, county commission, finance, legal, personnel, information technology and insurance services provided to other County departments on a cost reimbursement basis. Agency funds are used for tracking various activities including the accumulation and distribution of property taxes, escrow for developers, funds prior to adjudication, inter -governmental law enforcement activities, justice court and various other collection and escrow activities. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. General revenues include all taxes and investment earnings. Operating revenues and expenses are reported separately from non-operating items in the Proprietary Funds. Operating revenues and expenses generally result from providing services in connection with a proprietary fund's principal on-going operations. The principal operating revenues of the RV Park, Solid Waste and Fair & Expo Center are payments received from third parties for services. Operating expenses for the enterprise funds and internal service funds include the cost of providing services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. D. Budget Policy Budgets are prepared on the modified accrual basis for all funds. Except for the Fiduciary Funds, all of which are agency funds that account for "pass-through" transactions, the County adopts annual budgets for each of its funds, and sub -funds as determined appropriate, as required by State law. The resolution, authorizing appropriations for each fund, sets the level by which expenditures cannot lawfully exceed appropriations. The levels of control established by the resolution are: program or organizational unit, debt service, transfers out, contingency and reserve for future expenditure. The County's published budget contains more specific detailed information for the above mentioned expenditure categories. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriation resolution. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Such transfers require approval of the Board of County Commissioners. Appropriations lapse at year-end. E,YA Deschutes County, Oregon Notes to Financial Statements June 30, 2017 E. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance 1. Cash and cash equivalents and investments Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from date of acquisition. The cash balances of substantially all funds, including the agency funds, are pooled and invested by the County Treasurer for the purpose of increasing earnings through investment activities. Investments are reported at fair value as of June 30, 2017, based on market prices and include accrued interest. Earnings on the pooled monies are apportioned and credited to each fund monthly, based on the average daily balances of each participating fund. 2. Receivables and payables All trade and property tax receivables are shown net of an allowance for uncollectible amounts. Notes receivable in governmental funds include loans that are not expected, or scheduled, to be collected in the subsequent year. The County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions within the County. Taxes are levied as of July 1 based on assessed values as of January 1. Property tax payments are due in three equal installments, on November 15, February 15 and May 15. A discount of 3% is available if taxes are paid in full by November 15 and a discount of 2% on the unpaid balance is available if taxes are paid in full by February 15. Property taxes become a lien on the property on July 1. 3. Inventories and prepaid expenses Inventories are valued at cost using the first in/first out (FIFO) method. The only material inventories of the County are accounted for in the Road Fund and in the Fair & Expo Center Fund. Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid expenses. 4. Capital assets Capital assets, which include property, plant, equipment, infrastructure (e.g. roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business -type activities columns in the government -wide statement of net position. Capital assets are those assets with an initial individual cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost, if constructed. The County reports infrastructure assets on a network and subsystem basis. The amounts spent for the construction or acquisition of infrastructure assets are capitalized and reported in the government -wide financial statements. General infrastructure assets (i.e., those reported by governmental activities) include all such items acquired or constructed in fiscal years ending after June 30, 1980. Historical cost was estimated by backtrending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price -level index to deflate the cost to the acquisition year). The cost of normal repairs, maintenance and remodel that do not add to the value of the asset or materially extend asset lives are not capitalized. As required by GASB 72, donated capital assets are recorded at acquisition value at the date of donation. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings 30-60 Building improvements 10-15 Land improvements 10-30 Equipment and vehicles 3-20 Infrastructure 20-50 Intangibles 5 E, 191 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 5. Deferred outflows/ inflows of resources In addition to assets and liabilities, the statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources. The separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The separate financial statement element, deferred inflows of resources, represents a generation of net position that applies to a future period as so will not be recognized as an inflow of resources (revenue) until then. Deferred inflows of resources are reported on the governmental funds balance sheets as a result of reporting using the modified accrual method. The government funds report unavailable revenues from three sources: property taxes, special assessments and contracts of sale. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. 6. Compensated absences It is Deschutes County's policy to permit employees to accumulate earned but unused vacation, time management (a leave -with -pay program, including sick, vacation, family emergency), compensatory time and sick leave. Except in the two cases as noted below, no liability for unpaid accumulated sick leave is recorded because the County does not pay sick leave when employees separate from service with the County. Exceptions to non-payment of sick leave are: 1) Non -represented employees receive one-half of any sick leave earned 2) employees who are members of the Public Works union receive one-half of any sick leave upon separation, following at least five years of service. A liability for the vested portion of vacation, sick leave and time management is reported in the proprietary funds statement of net position and the government -wide statement of net position. 7. Pension plans For purposes of measuring the net pension asset or liability and pension expense, information about the fiduciary net position of the Oregon Public Employee Retirement System cost-sharing multiple employer defined benefit pension plan (benefit plan) and additions to/deductions from the benefit plan's fiduciary net position have been determined on the same basis as they are reported by the benefit plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 8. Net other post -employment benefits obligation (Net OPEB obligation) The net OPEB obligation is recognized as a non-current liability in the proprietary statement of net position and in the government - wide statement of net position. The liability reflects the present value of expected future payments. 9. Long-term obligations Long-term debt and other long-term obligations are reported as liabilities in the government -wide statement of net position in the applicable governmental activities and business -type activities columns and in the proprietary funds statement of net position. Bond premiums and bond discounts are amortized over the life of the bonds using the straight-line method. 10. Fund balance reporting The County reports its governmental fund balances in accordance with GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions. Under GASB 54, fund balances are required to be reported according to the following classifications: Nonspendable fund balance — includes amounts that cannot be spent because they are either not in spendable form, or, for legal or contractual reasons, must be kept intact. This classification includes inventories, prepaid amounts, assets held for sale and long-term receivables. CE,! Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Restricted fund balance — constraints placed on the use of these resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors or other governments; or are imposed by law (through constitutional provisions or enabling legislation). Committed fund balance — amounts that can be used only for specific purposes because of a resolution approved by the County's highest level of decision-making authority, the Board of County Commissioners. Such constraint remains legally binding unless removed in the same manner. Assigned fund balance — amounts that are constrained by the County's intent to be used for specific purposes, but that do not meet the criteria to be classified as restricted or committed. Intent is stipulated by the Board of County Commissioners or the department head with budgetary responsibility for such fund. This policy is established by the Financial Policies approved by the Board of County Commissioners August 22, 2011. Unassigned fund balance — this is the residual classification of the General Fund. Only the General Fund reports a positive unassigned fund balance. A negative balance must be reported in this classification for governmental funds, other than the General Fund, as the result of overspending for specific purposes for which amounts had been restricted, committed or assigned. The County first reduces restricted amounts, if any, when expenditures are incurred for purposes for which restricted and unrestricted (committed, assigned, or unassigned) amounts are available. The County next reduces committed amounts, followed by assigned amounts then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those restricted fund balance classifications could be used. Sometimes the County will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the County's policy to consider restricted — net position to have been depleted before unrestricted — net position is applied. 11. New GASB pronouncements GASB 77, Tax Abatement Disclosures became effective for those periods beginning after December 15, 2015. The County participates in a number of property tax abatement programs. All such abatement programs are authorized by Oregon revised statutes or by local resolution or ordinance. Some programs are initiated by the County and others by other local governments and state agencies. As the amount of taxes abated during FY 2017 is immaterial, no additional disclosure has been made. Note 2 — Stewardship, Compliance and Accountability A. Budgetary Information On an annual basis, County department personnel submit requested budgets for each fund for which they are responsible. Requested budgets, which include estimated revenues and appropriations of the estimated revenues, are submitted to the Budget Officer, who is appointed by the Board of County Commissioners. The Budget Officer then prepares the proposed budget, by fund, department, program, category and line item. The proposed budget includes information on the prior two years' actual revenues and expenditures, the current year budget and estimated resources and requested appropriations for the ensuing year. The proposed budget is presented by the Budget Officer to the Budget Committee. The Budget Committee holds public meetings and may make changes to the proposed budget. The Budget Committee submits the approved budget to the governing body of the County for adoption. The governing body announces a public hearing, and after considering matters discussed, may make changes to the budget prior to its adoption. Such changes cannot exceed 10% of the appropriations of the approved budget or a change in the amount of the ad valorem taxes without re -publication of the budget and another public hearing. After the budget is adopted, changes to appropriations are sometimes necessary. The governing body may make additional appropriations to 1) expend new grant revenues received during the fiscal year, 2) adopt a supplemental budget for occurrences or needs not foreseen at the time the budget was adopted and 3) approve appropriation transfers. It is, however, unlawful to overspend a category of appropriation. In accordance with State statutes, appropriations are approved before the beginning of the fiscal year and terminate June 30 of the year of appropriation. Encumbrances are not reported in the financial statements. «1 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 B. Funds with Negative Fund Balances / Negative Net Position Negative net position is reported in six of the Internal Service Funds: Facilities — $1,184,807, Administrative Services — $663,720, Board of County Commissioners - $98,147, Finance $95,372, Legal — $193,165, and Information Technology $967,608. For each of these funds, such negative net position balances are due to (1) noncurrent liabilities for compensated absences and OPEB obligations and (2) noncurrent liability and deferred inflows of resources related to the defined benefit plan. It will be necessary to expend future resources to satisfy the noncurrent liabilities. The amortization in future periods of the deferred inflows of resources will increase net position. Note 3 — Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial Credit Risk. Custodial credit risk is the risk that in the event of a bank failure, the County's deposits may not be returned to it. State statutes require that all bank deposits in excess of the FDIC or FSLIC insurance amounts be collateralized through the Oregon State Treasurer's Public Funds Collateralization Program. This program provides a structure for specified depositories to participate in a shared liability collateral pool. Securities pledged by individual institutions may range from 10% to 110% of public fund deposits depending on the financial institution's level of capitalization as determined by its federal regulatory authority. The securities pledged are designated as subject to the Pledge Agreement between the depository bank, custodian bank and Office of the State Treasurer (OST) and are held for the benefit of OST on behalf of the public depositors. The County's funds were held by financial institutions that participated in the State Treasurer's program and were in compliance with statutory requirements. The County has bank balances at June 30, 2017 as follows: Insured (FDIC) $ 255,301 Collateralized by securities held by the pledging financial institution in the financial institution's name 10,784,178 Total $ 11,039,479 Carrying value $ 5,976,342 The amounts above include the County's investments in certificates of deposit and money market funds, which are reported as investments on the Statement of Net Position. Investments As of June 30, 2017, the County had the following investments and maturities: Investment Type Federal Agency Securities Corporate notes Certificates of Deposit Municipal bonds Total fair value Accrued interest Investments, at fair value; plus accrued interest Local government investment pool Portfolio weighted average maturity Fair Value $ 70,131,042 35,950,292 483,643 19,489,634 126,054,611 450,347 126,504,957 23,555,051 $ 150,060,008 46 Weighted Average Maturity (Days) 454 466 258 424 380 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the County investment policy requires that the maximum investment portfolio average maturity be two years. The investment in the State of Oregon Local Government Investment Pool is included in the amount reported on the Statement of Net Position as cash and cash equivalents. The investment policy requires that at least 10% of the portfolio matures in 30 days, 25% matures in less than one year and 100% matures in less than five years. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligation. Oregon Revised Statutes, Chapter 294, authorizes the County to invest in obligations of the United States Treasury and United States Government agencies and instrumentalities, certain bankers' acceptances, repurchase agreements, certain high-grade commercial paper and corporate bonds and obligations of states and municipalities. The County's investment policy has been approved by the County Commissioners and specifies the County's investment objectives, required diversification, certain limitations and reporting requirements. These requirements limit investments in commercial paper and corporate bonds to 25% of the total portfolio and 5% in any one corporation, subsidiary or affiliate. Commercial paper and corporate bonds must also be rated at least Al/P1/F1 or A/A/A respectively by at least two nationally recognized statistical rating organizations. As of June 30, 2017, the County's investments in corporate bonds were rated A to AAA by Moody's Investors Service and Al to Aaa by Standard and Poor's. Custodial Credit Risk. Custodial credit risk is the risk that, in the event of the failure of the counterparty to a transaction, the government will not be able to recover the value of an investment or collateral securities in the possession of an outside party. The County's investment policy requires that the custodian provide annual financial statements, provide proof of its employees to act in this capacity and subject itself to the County's annual evaluation of the firm's creditworthiness. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The County's investment policy provides that the maximum that may be invested in any one issuer, as a percentage of total investments, is 100% for US Treasury, 100% for US Government agencies and 33% in any single government sponsored enterprise, $46,801,588 in the State of Oregon Investment Pool (the maximum imposed by state statute), 50% in Certificates of Deposit, 25% for Bankers' Acceptances, 25% for Commercial paper and Corporate notes and 5% in any one corporation, subsidiaries or affiliates, 25% for State and Local Government Securities. On June 30, 2017, the County did not hold investments with any one issuer that exceeded these limits. Foreign Currency Risk. The County's investment policy prohibits investments that are not U.S. dollar-denominated; therefore the County is not exposed to this risk. Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Summary of Carrying Amounts The carrying amounts of the County's deposits and investments shown above are included in the following financial statements at June 30, 2017 as follows: Reconciliation of deposits and investments to the Statement of Net Position and Statement of Fiduciary Assets and Liabilities Total deposits $ 5,976,342 Total investments, at fair value plus accrued interest 150,060,008 Total cash and cash equivalents and investments $ 156,036,350 Included in the following captions: Statement of net position Total cash and cash equivalents $ 28,006,702 Total investments, at fair value; plus accrued interest 119,968,752 Total Statement of Net Position 147,975,454 Statement of Fiduciary Assets and Liabilities - Agency Funds Cash and cash equivalents 1,524,911 Investments 6,535,985 Total Fiduciary Funds 8,060,896 Total cash and cash equivalents and investments $ 156,036,350 GASB Statement No. 72, Fair Value Measurement and Application (GASB 72), specifies a hierarchy of valuation classifications based on whether the inputs to the valuation techniques used in each valuation classification are observable or unobservable. These classifications are summarized in three broad levels listed below: Level 1 — Unadjusted quoted prices for identical instruments in active markets. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risk and default rates). Level 3 — Valuations derived from valuation techniques in which significant inputs or significant valuation drivers are unobservable. Federal Agency Securities, Corporate Notes, and Municipal Bonds are categorized as Level 2 based upon a matrix pricing technique that values securities based on their relationship to benchmark quoted prices. Total June 30, 2017 Federal Agency Securities $ 70,131,042 Corporate Notes 35,950,292 Municipal Bonds 19,489,634 Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs (Level l) (Level 2) (Level 3) - $ 70,131,042 - 35,950,292 19,489,634 Total assets $ 125,570,968 $ - $ 125,570,968 C% Deschutes County, Oregon Notes to Financial Statements June 30, 2017 B. Receivables Receivables, as of year-end, for the major funds and the nonmajor and internal service funds, in the aggregate, including the applicable allowances for uncollectible accounts are as follows: The County holds promissory notes as a result of its lending and real estate sale activities. Loans are made to not-for-profit entities and bear interest at rates from 0.0% to 4.5%. Sales of real property have been financed by the County and these interest-bearing notes are amortized over periods ranging from ten to twenty years. Interest rates are fixed at the time of the initial transaction at then prevailing rates. At June 30, 2017, $3,502,579 is due on contracts from sales of real property and $1,386,877, net of allowance for uncollectible amounts of $322,008, is due from lending activities. Assessments are due from property owners as part of a local improvement district. Each contract calls for semi-annual payments which amortizes the loan over 10 years. Prepayment, without penalty, is allowed. Payment is normally made in full in the event of sale of property or re -financing of the property. E, S9 Transient Notes and Property Taxes Room Taxes Total Taxes Accounts Contracts Assessments Receivable Receivable Receivable Receivable Receivable Receivable Total General Fund $ 776,622 $ $ 776,622 $ 450,858 $ 3,971,599 $ - $ 5,199,079 Sheriff - - 323,468 - - 323,468 Countywide Law Enforcement 543,754 543,754 - - - 543,754 Rural Law Enforcement 246,363 246,363 - - - 246,363 Road - - 406,497 - 209,744 616,240 Deschutes County 9-1-1 194,907 194,907 1,087,445 - - 1,282,352 Health Services - - 1,699,773 - - 1,699,773 Solid Waste - - 608,768 - - 608,768 Fair & Expo Center - - 6,657 - - 6,657 RV Park - - - 2,948 - - 2,948 Nonmajor and Internal Service 12,155 707,540 719,695 335,499 917,857 - 1,973,051 Total $ 1,773,801 $ 707,540 $ 2,481,341 $ 4,921,912 $ 4,889,456 $ 209,744 $ 12,502,453 The County holds promissory notes as a result of its lending and real estate sale activities. Loans are made to not-for-profit entities and bear interest at rates from 0.0% to 4.5%. Sales of real property have been financed by the County and these interest-bearing notes are amortized over periods ranging from ten to twenty years. Interest rates are fixed at the time of the initial transaction at then prevailing rates. At June 30, 2017, $3,502,579 is due on contracts from sales of real property and $1,386,877, net of allowance for uncollectible amounts of $322,008, is due from lending activities. Assessments are due from property owners as part of a local improvement district. Each contract calls for semi-annual payments which amortizes the loan over 10 years. Prepayment, without penalty, is allowed. Payment is normally made in full in the event of sale of property or re -financing of the property. E, S9 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 C. Deferred Outflows of Resources Deferred outflows — refunding: the difference between the carrying value of refunded debt and its reacquisition price was deferred and is amortized on the straight-line basis over the period benefitted. Deferred outflows — pension: the contributions made to OPERS during the year ended June 30, 2017 and other items related to the County defined benefit pension plans have been classified as a deferred outflow of resources. Deferred Outflows of Resources Deferred outflows - refunding HHSBJCC (1998 COPS) County Buildings (FF&C 2003) Total deferred outflows - refunding Deferred outflows - pension Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on investments Differences between employer contributions and employer's proportionate share of system contributions Contributions subsequent to the measurement date Total deferred outflows - pension Total deferred outflows of resources W11 Governmental Activities $ 18,626 879,427 898,052 2,992,093 19,288,310 17,866,808 389,454 5,782,631 46,319,295 $ 47,217,347 Business -Type Activities 214,667 214,667 97,708 629,869 583,449 12,721 188,835 1,512,582 $ 1,727,249 Total $ 18,626 1,094,094 1,112,720 3,089,801 19,918,179 18,450,256 402,175 5,971,466 47,831,877 $ 48,944,597 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 D. Capital Assets Capital asset activity for the year ended June 30, 2017 was as follows: Governmental Activities Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and improvements Land improvements Equipment Vehicles Infrastructure Intangible assets Total capital assets, being depreciated Less accumulated depreciation for: Buildings and improvements Land improvements Equipment Vehicles Infrastructure Intangible assets Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net July 1, 2016 Increases Decreases June 30, 2017 $ 13,172,909 $ 297,632 $ - $ 13,470,541 4,075,056 5,272,271 (1,924,744) 7,422,583 17,247,965 5,569,903 (1,924,744) 20,893,124 91,408,258 598,699 - 92,006,957 4,957,115 44,094 - 5,001,209 23,180,090 2,376,212 (616,908) 24,939,394 8,454,294 1,171,837 (572,027) 9,054,104 105,299,055 5,252,551 - 110,551,606 5,273,277 168,149 - 5,441,426 238,572,088 9,611,542 (1,188,935) 246,994,696 (27,414,750) (2,375,282) - (29,790,032) (2,637,092) (174,390) - (2,811,482) (18,497,517) (1,140,759) 616,908 (19,021,368) (5,934,142) (714,602) 536,819 (6,111,925) (55,868,566) (4,045,685) - (59,914,251) (4,402,334) (447,411) - (4,849,745) (114,754,401) (8,898,129) 1,153,727 (122,498,803) 123,817,686 713,412 (35,207) 124,495,893 $ 141,065,652 $ 6,283,316 $ (1,959,952) $ 145,389,017 51 Business -type activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and improvements Land improvements Equipment Vehicles Intangible assets Total capital assets, being depreciated Less accumulated depreciation for: Buildings and improvements Land improvements Equipment Vehicles Intangible assets Total accumulated depreciation Total capital assets, being depreciated, net Business -type activities capital assets, net Deschutes County, Oregon Notes to Financial Statements June 30, 2017 July 1, 2016 Increases Decreases June 30, 2017 $ 1,924,037 $ - $ - $ 1,924,037 1,078,950 237,561 (210,174) 1,106,337 3,002,987 237,561 (210,174) 3,030,374 32,496,282 5,311 - 32,501,593 37,977,210 862,735 - 38,839,945 7,816,314 511,286 (99,315) 8,228,285 313,330 39,327 - 352,657 87,429 34,606 - 122,035 78,690,564 1,453,265 (99,315) 80,044,515 (9,417,537) (730,151) - (10,147,688) (17,939,231) (1,901,480) 3,021 (19,837,690) (5,327,438) (414,624) 99,315 (5,642,747) (217,559) (17,640) - (235,199) (82,910) (7,981) - (90,891) (32,984,676) (3,071,876) 102,336 (35,954,216) 45,705,889 (1,618,611) 3,021 44,090,300 $ 48,708,876 $ (1,381,050) $ (207,153) $ 47,120,674 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government Public safety County roads Health and welfare Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets Total depreciation expense - governmental activities Business -type activities: Solid waste Fair & Expo center RV Park Total depreciation expense - business -type activities MA $ 1,624,615 2,205,939 4,576,831 395,292 8,802,677 95,452 $ 8,898,129 $ 2,245,431 697,927 128,518 $ 3,071,876 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Operating Leases — County as Lessor of Real Property The County received $1,591,000 in lease rental revenue for the year ended June 30, 2017, and the County expects to receive approximately $5.9 million in lease rental income over the next 4 years under non -cancelable leases which were in effect at June 30, 2017. These leases are cancelable if annual appropriations are not included in the lessee's annual appropriation resolution. The carrying value of real property, leased under non -cancelable operating leases, was $10.6 million as of June 30, 2017, and depreciation expense for Fiscal Year 2017 was $258,000. E. Interfund Activity Interfund Transfers: Transfers In Interfund transfers are utilized for the following purposes: Certain special revenue funds, the Fair & Expo Center and Internal Service funds require additional resources transferred from the General Fund for operations; certain debt service funds require transfers from operating funds to meet annual debt service requirements; and the RV Park requires additional resources from a special revenue fund to meet its debt service requirements. F. Long -Term Obligations Operating Leases — County as Lessee The County leases buildings and office facilities and equipment under non -cancelable operating leases. The total expended for such leases for the year ended June 30, 2017, was approximately $539,514. The future minimum lease payments for these leases are as follows: Fiscal Year Ending June 30, Amount 2018 General Sheriffs Office PERS Health Services Reserve Nonmajor governmental Internal Service Funds RV Park Fair & Expo Center Total Transfers Out 40,200 $ 689,117 General Fund $ $ $ 4,684,193 $ 2,000,000 $ 2,876,769 $ 919,450 $ $ 250,000 $ 10,730,412 Sheriffs Office - - 273,291 - - 273,291 Road 8,067,643 8,067,643 Health Services 445,740 - 445,740 Nonmajor governmental 779,169 3,151,787 704,688 160,000 280,447 5,076,091 Internal Service Funds 301,260 301,260 Total $ 1,526,169 $ 3,151,787 $ 4,684,193 $ 2,000,000 $ 11,922,391 $ 919,450 $ 160,000 $ 530,447 $ 24,894,437 Interfund transfers are utilized for the following purposes: Certain special revenue funds, the Fair & Expo Center and Internal Service funds require additional resources transferred from the General Fund for operations; certain debt service funds require transfers from operating funds to meet annual debt service requirements; and the RV Park requires additional resources from a special revenue fund to meet its debt service requirements. F. Long -Term Obligations Operating Leases — County as Lessee The County leases buildings and office facilities and equipment under non -cancelable operating leases. The total expended for such leases for the year ended June 30, 2017, was approximately $539,514. The future minimum lease payments for these leases are as follows: Fiscal Year Ending June 30, Amount 2018 $ 248,217 2019 182,246 2020 141,919 2021 76,535 2022 40,200 $ 689,117 W Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Notes and Bonds The County has issued General Obligation Bonds, Full Faith & Credit Obligations and Limited Tax Bonds, for both governmental and business -type activities, to provide funds for the acquisition and construction of major capital facilities, to acquire personal property and to fund the pension liability. General Obligation, Full Faith & Credit Obligation and Limited Tax bonds are direct obligations and pledge the full faith and credit of the County. These are serial bonds with original terms ranging from 20 years to 30 years with increasing amounts of principal maturing each year. Full Faith & Credit Obligation and Limited Tax bonds currently outstanding are as follows: Balance at Purpose Interest Rates June 30, 2017 General Obligation and Full Faith & Credit Obligation Bonds: Governmental activities 2.00-6.85% $ 27,089,413 Governmental activities - refunding 1.99-4.00% 19,798,798 Business -type activities - refunding 1.68-4.00% 11,722,802 $ 58,611,013 Changes in Compensated Leave, Bonds, Claims and Landfill Costs Changes in non-current liabilities, other than OPEB and Net pension, for the year ended June 30, 2017, are as follows: Due Within One Business-tvne activities: Full faith & credit obligations July 1, 2016 Increases Decreases June 30, 2017 Year Governmental activities: - (10,529) 148,438 10,529 General obligation bonds 2,595,000 Claims - - Compensated absences 380,553 257,152 (231,240) Internal service funds $ 8,424,028 $ 16,747,923 $ (18,853,186) $ 6,318,765 $ 4,213,353 Pension obligation bonds 10,235,315 - (335,902) 9,899,413 377,660 Full faith & credit obligations 39,548,053 - (2,559,255) 36,988,798 2,635,671 Unamortized prem / (disc) 765,136 - (43,199) 721,937 43,199 Compensated absences Governmental funds 7,587,133 6,749,613 (6,565,195) 7,771,551 6,450,387 Internal service funds 1,099,857 666,583 (799,252) 967,186 802,765 $ 67,659,523 $ 24,164,119 $ (29,155,988) $ 62,667,651 $ 14,523,035 Business-tvne activities: Full faith & credit obligations $ 12,633,947 $ - $ (911,145) $ 11,722,802 $ 931,829 Unamortized prem / (disc) 158,967 - (10,529) 148,438 10,529 General obligation bonds 2,595,000 - (2,595,000) - - Compensated absences 380,553 257,152 (231,240) 406,465 337,366 Landfill closure and postclosure 10,690,372 808,364 - 11,498,736 - $ 26,458,840 $ 1,065,516 $ (3,747,914) $ 23,776,441 $ 1,279,724 During Fiscal Year 2017, $7,596,000 was paid in compensated leave — $2,223,000 from Sheriff's Office, $1,744,000 from Health Services, $649,000 from General Fund, $467,000 from Road Department, $418,000 from Deschutes County 9-1-1, $431,000 from Juvenile Community Justice, $266,000 from Community Development, $331,000 from Adult Parole & Probation $810,000 from Internal Service Funds, $231,000 from enterprise funds and the remaining $26,000 from other special revenue funds. The claims liability is reported in two of the County's internal service funds — Risk Management and Health Benefits Fund. The liability will be liquidated with resources in these funds. The resources to retire the pension obligation bonds are provided by charges to those operating departments with personnel. In FY 2017 the Sheriff's Office, Health Services, General, Internal Service Funds and Road funds provided 29%, 23%, 15%, 9% and 6%, respectively. The remaining 18% is provided by other governmental and proprietary funds. The Full faith and credit obligations are liquidated by third party rents, charges to departments occupying various buildings and general fund transfers. M,I Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Debt Service Requirements Debt service requirements on the County bonds at June 30, 2017, are as follows: G. Deferred Inflows of Resources Governmental Funds Balance Sheet: Unavailable revenues are reported as deferred inflows of resources on the governmental funds balance sheet. These are revenues which are earned, but not available to liquidate liabilities of the current period. At the end of the current fiscal year, these balances are: Governmental Activities Business -type Activities Principal Interest Principal Interest Fiscal Year Special Inflows of Property Taxes 2018 $ 3,013,331 $ 2,079,976 $ 931,829 $ 253,234 2019 2,578,729 1,998,630 951,110 234,064 2020 2,729,154 1,907,300 969,061 214,544 2021 3,098,510 1,596,683 991,090 195,656 2022 3,287,236 1,477,155 1,004,364 180,238 2023-2027 18,130,382 5,153,849 5,006,218 570,670 2028-2032 9,928,295 1,653,960 1,531,705 174,818 2033-2037 3,602,575 454,801 337,425 5,399 2038-2042 520,000 23,400 - - Total $ 46,888,211 $ 16,345,753 $ 11,722,802 $ 1,828,622 G. Deferred Inflows of Resources Governmental Funds Balance Sheet: Unavailable revenues are reported as deferred inflows of resources on the governmental funds balance sheet. These are revenues which are earned, but not available to liquidate liabilities of the current period. At the end of the current fiscal year, these balances are: Statement of Net Position: An acquisition of net position, applicable to a future reporting period, is reported as deferred inflows of resources on the Statement of Net Position. At the end of the current fiscal year, these balances, all related to the County's defined benefit pension plans by the application of GASB 68 are: Net difference between projected and actual earnings on investments Differences between employer contributions and employer's proportionate share of system contributions Deferred Inflows of Resources Governmental Business - Type Activities Activities Total $ 1,149,590 $ 37,541 $ 1,187,131 1,920,092 62,701 1,982,793 Total deferred inflows of resources $ 3,069,682 $ 100,242 $ 3,169,924 M Deferred Inflows of Resources Total Deferred Special Inflows of Property Taxes Assessments Contracts of Sale Resources General Fund $ 703,103 $ - $ 3,502,579 $ 4,205,682 Countywide LED 492,683 - - 492,683 Rural LED 223,138 - - 223,138 Road - 209,744 - 209,744 Deschutes County 9-1-1 176,839 - - 176,839 Nonmajor funds 11,051 - - 11,051 Total Deferred Inflows of Resources $ 1,606,814 $ 209,744 $ 3,502,579 $ 5,319,137 Statement of Net Position: An acquisition of net position, applicable to a future reporting period, is reported as deferred inflows of resources on the Statement of Net Position. At the end of the current fiscal year, these balances, all related to the County's defined benefit pension plans by the application of GASB 68 are: Net difference between projected and actual earnings on investments Differences between employer contributions and employer's proportionate share of system contributions Deferred Inflows of Resources Governmental Business - Type Activities Activities Total $ 1,149,590 $ 37,541 $ 1,187,131 1,920,092 62,701 1,982,793 Total deferred inflows of resources $ 3,069,682 $ 100,242 $ 3,169,924 M Deschutes County, Oregon Notes to Financial Statements June 30, 2017 H. Fund Balance Constraints Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The County itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). Fund Balances: Nonspendable: Long-term Notes Receivable Inventory Total Nonspendable Restricted to: Public safety Economic development Health services General government Marketing & promotion Law library Park Development and Rangeland Technology Improvements Road improvement and maintenance Total Restricted Committed to: Economic development Economic stabilization Court activities Health services Debt Service Communication systems Expansion of facilities Total Committed Assigned to: Public safety General government Technology Improvements Fleet repair & replacement Total Assigned Unassigned: Total Fund Balance Major Special Revenue Funds Deschutes General Fund LED 41 LED 42 Road County 9-1-1 Health Services PERS Reserve Other Funds Total $ 469,020 $ - $ - $ - $ - $ - $ - $ 917,857 $ 1,386,876 1,941,932 1,941,932 469,020 1,941,932 917,857 3,328,808 - 6,939,571 6,528,699 - 4,705,268 - - 1,709,781 19,883,319 - - - - - - - 1,225,551 1,225,551 - - - - - 16,213,459 - 109,057 16,322,516 - - - - - - - 6,700,660 6,700,660 - - - - - - - 554,732 554,732 - - - - - - - 432,210 432,210 995,867 995,867 - - - - 5,950,000 - - 183,337 6,133,337 9,735,377 10,951,402 20,686,778 6,939,571 6,528,699 9,735,377 10,655,268 16,213,459 22,862,598 72,934,971 229,517 - - - - - - - 229,517 - 13,246,968 - 13,246,968 - - - - - - - 112,235 112,235 - - - - - - - 101,333 101,333 - - - - - - - 558,106 558,106 - - - - - - - 9,035 9,035 7,275,557 7,275,557 7,505,074 13,246,968 780,709 21,532,751 1,355,839 - - - - - - - 1,355,839 2,015,868 - - - - - - - 2,015,868 977,192 - - - - - - - 977,192 1,020,719 1,020,719 5,369,619 5,369,619 10,483,020 10,483,020 .R b7 3 6.939571 6528.699 1 L677309 10.655268 16213.459 1324696 24561.163 113.649.169 The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the County's highest level of decision-making authority. The Board of County Commissioners is the highest level of decision-making authority for Deschutes County which can, by adoption of a resolution prior to the end of the fiscal year, commit a fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) or to remove or revise the limitation. LED#1, LED#2 and DC 9-1-1 are all special revenue funds funded through voter approved property taxes for their specific purposes. Funds balances restricted in LED #1 and LED #2 are not being restricted for specific purposes but rather exist for liquidity purposes due to the cyclical nature of property tax collections. Fund balances in the DC 9-1-1 fund are restricted to provide liquidity and to fund communication system improvements in FY 2018. Road fund balance is restricted to provide funding for the road improvement plan over the next five years. Health Services fund balance is restricted to meet the growing population of eligible clients expected in FY 2018 and beyond. 061 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Amounts in the assigned fund balance classification are intended to be used by the County for specific purposes but do not meet the criteria to be classified as committed. The Board of County Commissioners has, by resolution, assigned fund balance as it does when appropriating fund balance for the difference between estimated revenues and appropriations in the subsequent year's adopted budget. Unlike commitments, assignments generally exit only temporarily. Additional action does not have to be taken to remove an assignment. Fund balances, as listed in aggregate in the Statement of Revenues, Expenditures and Changes in Fund Balance, are constrained to the balance classification and activities of the funds. Constraints are at the level of which the fund was originally established. The County has activity between funds for various purposes. Any balances outstanding at year end are reported as due from / to other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government -wide financial statements. Balances between the funds included in the governmental activities, the governmental and internal service funds, are eliminated so that only the net amount is included as internal balances in the governmental activities column on the Statement of Net Position. Similarly, balances between the funds included in the business -type activities, the enterprise funds, are eliminated so that only the net amount is included as internal balances in the business -type activities column on the Statement of Net Position. Certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as Transfers In / Out. While reported in fund financial statements, certain eliminations are made in the preparation of the government -wide Statement of Activities. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Transfer between the funds in business -type activities are eliminated so that only the net amount is included as transfers in the business -type activities column. I. Segment Information The County has three enterprise activities. The RV Park Fund is used to account for the operations of the County's Recreational Vehicle Park, located in Redmond, Oregon. The Solid Waste Fund is used to account for the operations of the County's landfill at Knott Road and 27' Street, and four transfer and recycle stations located throughout the County. The accumulation of resources that will be required for the closure and postclosure costs associated with the sanitary landfill are also accounted for in the Solid Waste Fund. The operations of the County's Fair & Expo Center, including the annual county fair, are accounted for in the Fair & Expo Center Fund. Also accounted for in this fund is activity related to servicing the general obligation bond, originally issued in 1996, refunded in 2002 and in 2012, to finance the construction of the facility and the reserves for future capital needs. The final payment on the general obligation bond was made on December 1, 2016. In order to maintain a higher degree of fiscal management, the debt of the Fair & Expo Center is accounted for in a separate fund. A budget is adopted for this fund. A combining schedule of revenues, expenses and changes in net position and schedule of cash flows is prepared for the Fair & Expo Center. Note 4 — Other Information A. Risk Management The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County purchases commercial insurance for property coverage, fidelity bonding, catastrophic workers' compensation claims and stop loss on its medical/dental risks. It self -insures against losses for general liability, workers' compensation, medical and dental benefits, unemployment benefits and other risks. WFA Deschutes County, Oregon Notes to Financial Statements June 30, 2017 All operations of the County participate in the County's self-insurance program, with the exception of Deschutes County 9-1-1 County Service District. That District is covered under only the medical/dental plan and unemployment insurance. Settled claims have not exceeded insurance coverage in any of the past three fiscal years. The County estimates liabilities for incurred losses on both reported and unreported claims for general and vehicle/fleet liability, workers' compensation and employee medical coverage. Workers' compensation, general and vehicle/fleet liability estimates are primarily based on individual case estimates for reported claims and through historical data for unreported claims as determined by the County's Risk Management department. Liabilities are based on estimated total cost of settling claims. Liabilities include an amount for claims for that have been incurred but not reported (IBNR). The result of the process to estimate the claims is not an exact amount and accordingly claims are reevaluated periodically to consider the effects of inflation, recent claims settlement trends and other economic and social factors. Payments, from the funds whose activities are covered, are made to internal service insurance funds, based on the estimated need to pay prior and current claims and to accumulate resources for future losses. The Insurance fund, which accounts for all insurance programs other than medical and dental, is reporting a net position as of June 30, 2017 of $939,120. The net position of the Health Benefits fund (medical/dental) at June 30, 2017, is $13,246,339 which is 84% of Fiscal Year 2017 claims expense. Changes in the Insurance Funds' claim liabilities are as follows: B. Contingent Liabilities and Commitments The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. Claims covered by the County's self-insurance are reviewed and losses are accrued based on the judgment of County management. According to County management, based on advice of legal counsel with respect to such litigation and claims, ultimate disposition of these matters will not have a material adverse effect on the financial position or results of County operations. As of June 30, 2017, the County had no material commitments outstanding. Insurance Health Benefits Total Claims payable, June 30, 2015 $ 4,434,389 $ 2,052,797 $ 6,487,186 FY 2016 claims expense 2,403,431 15,956,043 18,359,473 FY 2016 claims paid 969,101 15,453,530 16,422,631 Claims payable, June 30, 2016 $ 5,868,719 $ 2,555,309 $ 8,424,028 FY 2017 change in estimate (1,110,916) - (1,110,916) FY 2017 claims expense 1,060,077 15,687,846 16,747,923 FY 2017 claims paid 1,607,056 16,135,215 17,742,271 Claims payable, June 30, 2017 $ 4,210,825 $ 2,107,940 $ 6,318,765 B. Contingent Liabilities and Commitments The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. Claims covered by the County's self-insurance are reviewed and losses are accrued based on the judgment of County management. According to County management, based on advice of legal counsel with respect to such litigation and claims, ultimate disposition of these matters will not have a material adverse effect on the financial position or results of County operations. As of June 30, 2017, the County had no material commitments outstanding. Deschutes County, Oregon Notes to Financial Statements June 30, 2017 C. Participation in Public Employees Retirement System Plan descriptions: Employees of the County are provided with pensions through the Oregon Public Employees Retirement System, (OPERS), which is a cost-sharing multiple -employer defined benefit plan. All the benefits of OPERS are established by the Oregon legislature pursuant to Oregon Revised Statute (ORS) Chapters 238 and 238A. The ORS Chapter 238 Defined Benefit Pension Plan, known as Tier 1/Tier 2 is closed to new members hired on or after August 29, 2003. A second program, the Chapter 238A-OPERS Pension Program (OPSRP-DB), is described in the second portion of this note. Membership in the programs is delineated based on date of hire. OPERS issues a publicly available financial report which can be obtained at http://www.oregon.gov/pers/Pages/section/financial reports/financials. aspx. Benefits Provided Under the Programs W9 Chapter 238 -Tier One and Tier Two Chapter 238A-OPERS Pension Program (OPSRP- DB Pension The OPERS retirement allowance is payable monthly for life. The ORS 238A Defined Benefit Pension Program Benefits The allowance may be selected from 13 retirement benefit provides benefits to members hired on or after August options. These options include survivorship benefits and 29, 2003. This portion of the OPSRP provides a life lump -sum refunds. The basic benefit is based on years of pension funded by employer contributions. Benefits service and final average salary. A percentage (2.0 percent for are calculated with the following formula for members police and fire employees, 1.67 percent for general service who attain normal retirement age: employees) is multiplied by the number of years of service and the final average salary. Benefits may also be calculated Police and fire: 1.8 percent is multiplied by the under a formula plus an annuity (for members who were number of years of service and the final average contributing before August 21, 1981,) or a money match salary. Normal retirement age for police and fire computation if a greater benefit results. members is age 60 or age 53 with 25 years of retirement credit. To be classified as a police or fire member, the individual must have been employed continuously as a police or fire member for at least five years immediately preceding retirement. General service: 1.5 percent is multiplied by the number of years of service and the final average salary. Normal retirement age for general service members is 65, or age 58 with 30 years of retirement credit. A member of the pension program becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, and, if the pension program is terminated, the date on which termination becomes effective. W9 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Contributions OPERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulated sufficient assets to pay benefits when due. This funding policy applies to the OPERS Defined Benefit Plan and the Other Postemployment Benefit Plans. Ultimate authority for setting and changing the laws governing contributions rests with the Oregon legislature. Employer contribution rates during the period were based on the December 31, 2014 actuarial valuation, which became effective June 30, 2016. The state of Oregon and certain schools, community colleges, and political subdivisions have made unfunded actuarial liability payments, and their rates have been reduced. Employer contributions for the year ended June 30, 2017 were $5,971,466, excluding amounts to fund employer specific liabilities. The rates, presented as a percentage of covered payroll, for the County in effect for the fiscal year ended June 30, 2017 were: Chapter 238 -Tier One and Tier Two Chapter 238A - OPERS Pension Program (OPSRP - DB) General Service 12.71% 7.33% Police and Fire 16.58% 11.44% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2017, the County reported a liability of $93,391,575 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2014 and rolled forward to June 30, 2016. The County's proportion of the net pension liability was based on the County's projected long-term contribution effort as compared to the total projected long-term contribution effort of all employers. Rates of every employer have at least two major components: 1. Normal Cost Rate: The economic value, stated as a percent of payroll, for the portion of each active member's total projected retirement benefit that is allocated to the upcoming year of service. The rate is in effect for as long as each member continues in OPERS-covered employment. The current value of all projected future Normal Cost Rate contributions is the Present Value of Future Normal Costs (PVFNC). The PVFNC represents the portion of the projected long-term contribution effort related to future service. G11] Chapter 238 -Tier One and Tier Two Chapter 238A-OPERS Pension Program (OPSRP- DB Disability A member with 10 or more years of creditable service A member who has accrued 10 or more years of Benefits who becomes disabled from other than duty -connected retirement credits before the member becomes causes may receive a non -duty disability benefit. A disabled or a member who becomes disabled due to disability resulting from a job -incurred injury or illness job-related injury shall receive a disability benefit of qualifies a member (including OPERS judge members) 45 percent of the member's salary determined as the for disability benefits regardless of the length of last full month of employment before the disability OPERS-covered service. Upon qualifying for either a occurred. non -duty or duty disability, service time is computed to age 58 (55 for police and fire members) when determining the monthly benefit. Benefit Members may choose to continue participation in a No ability to change. Changes after variable equities investment account after retiring and Retirement may experience annual benefit fluctuations due to changes in the market value of equity investments. Cost of Living Under ORS 238.360 monthly benefits are adjusted Under ORS 238Z.210 monthly benefits are adjusted Adjustments annually through cost -of -living changes (COLA). The annually through cost -of -living changes. The cap on cap on the COLA in Fiscal Year 2017 and beyond will the COLA in Fiscal Year 2017 and beyond will vary vary based on the amount of the annual benefit. based on the amount of the annual benefit. Contributions OPERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulated sufficient assets to pay benefits when due. This funding policy applies to the OPERS Defined Benefit Plan and the Other Postemployment Benefit Plans. Ultimate authority for setting and changing the laws governing contributions rests with the Oregon legislature. Employer contribution rates during the period were based on the December 31, 2014 actuarial valuation, which became effective June 30, 2016. The state of Oregon and certain schools, community colleges, and political subdivisions have made unfunded actuarial liability payments, and their rates have been reduced. Employer contributions for the year ended June 30, 2017 were $5,971,466, excluding amounts to fund employer specific liabilities. The rates, presented as a percentage of covered payroll, for the County in effect for the fiscal year ended June 30, 2017 were: Chapter 238 -Tier One and Tier Two Chapter 238A - OPERS Pension Program (OPSRP - DB) General Service 12.71% 7.33% Police and Fire 16.58% 11.44% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2017, the County reported a liability of $93,391,575 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2014 and rolled forward to June 30, 2016. The County's proportion of the net pension liability was based on the County's projected long-term contribution effort as compared to the total projected long-term contribution effort of all employers. Rates of every employer have at least two major components: 1. Normal Cost Rate: The economic value, stated as a percent of payroll, for the portion of each active member's total projected retirement benefit that is allocated to the upcoming year of service. The rate is in effect for as long as each member continues in OPERS-covered employment. The current value of all projected future Normal Cost Rate contributions is the Present Value of Future Normal Costs (PVFNC). The PVFNC represents the portion of the projected long-term contribution effort related to future service. G11] Deschutes County, Oregon Notes to Financial Statements June 30, 2017 2. UAL Rate: If system assets are less than the actuarial liability, an Unfunded Actuarial Liability (UAL) exists. UAL can arise in a biennium when an event such as experience differing from the assumptions used in the actuarial valuation occurs. An amortization schedule is established to eliminate the UAL that arises in a given biennium over a fixed period of time if future experience follows assumptions. The UAL Rate is the upcoming year's fixed component of the cumulative amortization schedules, stated as a percent of payroll. The employer's PVFNC depends on both the normal cost rates charged on the employer's payrolls, and on the underlying demographics of the respective payrolls. For OPERS funding, employers have up to three different payrolls, each with a different normal cost rate: (1) Tier 1/Tier 2 payroll, (2) OPSRP general service payroll, and (3) OPSRP police and fire payroll. Since many governments in Oregon have sold pension obligation bonds and deposited the proceeds with OPERS (referred to as side accounts or transitional liability or surplus), adjustments are required. After each employer's projected long-term contribution effort is calculated, that amount is reduced by the value of the employer's side account, transitional liability/surplus, and the pre-SLGRP liability/surplus (if any). This is done as those balances increase/decrease the employer's projected long-term contribution effort because side accounts are effectively pre -paid contributions. Looking at both rate components, the projected long-term contribution effort is the sum of the PVFNC and UAL. The PVFNC part of the contribution effort pays for the value of future service while the UAL part of the contribution effort pays for the value of past service not already funded by accumulated contributions and investment earnings. Each of the two contribution effort components are calculated at the employer -specific level. The sum of these components across all employers is the total projected long-term contribution effort. At June 30, 2017, the County's proportion was 0.62209947 percent. For the year ended June 30, 2017, the County recognized a pension expense of $15,967,428. At June 30, 2017, the County reports deferred outflows of resources and deferred inflows of resources related to pensions from the following sources as shown in footnote 3.0 and 3.G. Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on investments Changes in proportionate share Contributions made to the plan subsequent to measurement date Differences between employer contibution and employer's proportionate share of system contributions Net Deferred Outflow of Resources Less: Contributions Made Subsequent to Measurement Date C12I Deferred Deferred Outflows of Inflows of Resources Resources $ 3,089,801 $ 19,918,179 18,450,256 - 402,175 1,187,131 5,971,465 - - 1,982,793 $ 47,831,877 $ 3,169,924 $ 44,661,953 5,971,465 $ 38,690,488 Deschutes County, Oregon Notes to Financial Statements June 30, 2017 The County's contributions made subsequent to the measurement date will be recognized in the County's pension expense in the following year. The net amount of the County's remaining deferred outflows of resources and deferred inflows of resources that will be recognized in the County's pension expense in the subsequent five years in the aggregate are shown in the table below. 1 st Fiscal Year - Fiscal Year 2018 $ 6,694,030 2nd Fiscal Year - Fiscal Year 2019 6,694,030 3rd Fiscal Year - Fiscal Year 2020 13,559,264 4th Fiscal Year - Fiscal Year 2021 10,336,827 5th Fiscal Year - Fiscal Year 2022 1,406,337 Total $ 38,690,488 Actuarial Assumptions: The employer contribution rates effective July 1, 2015, through June 30, 2017, were set using the entry age normal actuarial cost method. For the Tier One / Tier Two component of the OPERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (1) an amount for normal cost (the estimated amount necessary to finance benefits earned by the employees during the current service year), and (2) an amount for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with new unfunded actuarial accrued liabilities being amortized over 20 years. For the OPSRP Pension Program component of the PERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (a) an amount for the normal cost (the estimated amount necessary to finance benefits earned by the employees during the current service year), (b) an actuarially determined amount for funding a disability benefit component, and (c) an amount for the amortization of unfunded actuarially accrued liabilities, which are being amortized over a fixed period with new unfunded actuarially accrued liabilities being amortized over 16 years. A summary of the economic assumptions used for the December 31, 2014 actuarial valuation are shown below: Valuation Date December 31, 2014 Valuation Measurement Date June 30, 2016 Experience Study 2014, published September 2015 Actuarial assumptions: Inflation rate 2.50 percent (reduced from 2.75%) Long term expected rate of return 7.50 percent (reduced from 7.75%) Discount rate 7.50 percent (reduced from 7.75%) Projected of salary increase. 3.50 percent (reduced from 3.75%) Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in Cost of living adjustments (COLA) accordance with Moro decision; blend based on service. Healthy retirees and beneficiaries: RP -2000 Sex -distinct, generational per Scale AA, with collar adjustments and set -backs as described in the valuation. Active members: Mortality rates are a percentage of healthy retiree rates that vary by Mortality group, as described in the valuation. Disabled retirees: Mortality rates are a percentage (70% for males, 95% for females) of the RP -2000 Sex -distinct, generational per Scale BB, disabled mortality table WA Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Actuarial valuations of an on-going plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31 st of even numbered years. The experience study used to develop assumptions and estimates for the December 2014 actuarial valuation upon which the GASB 68 reporting data is based was adopted on September 2015. The long-term expected rate of return on plan investments was developed based on the forward looking capital market economic model. The table below presents the assumptions related to asset allocation and expected rates of return by major asset class using the 50r' percentile. The target allocation and best estimates of arithmetic real rates of return for each major class are summarized in the following table: Asset Class Target Allocation* Core Fixed Income 8.00% Short -Term Bonds 8.00% Bank/Leveraged Loans 3.00% High Yield Bonds 1.00% Large/Mid Cap US Equities 15.75% Small Cap US Equities 1.31% Micro Cap US Equities 1.31% Developed Foreign Equities 13.13% Emerging Market Equities 4.12% Non -US Small Cap Equities 1.88% Private Equity 17.50% Real Estate (Property) 10.00% Real Estate (REITS) 2.50% Hedge Fund of Funds - Diversified 2.50% Hedge Fund - Event -driven 0.63% Timber 1.88% Farmland 1.88% Infrastructure 3.75% Commodities 1.88% Assumed Inflation - Mean Annual Arithmetic Return 4.10% 3.65% 5.69% 6.67% 7.96% 8.93% 9.37% 8.34% 10.56% 9.01% 11.60% 6.48% 8.74% 4.94% 7.07% 6.60% 7.11% 8.31% 6.07% Compound Annual (Geometric) Return 4.00% 3.61% 5.42% 6.20% 6.70% 6.99% 7.01% 6.73% 7.25% 7.22% 7.97% 5.84% 6.69% 4.64% 6.72% 5.85% 6.37% 7.13% 4.58% 2.50% Standard Deviation 4.68% 2.74% 7.82% 10.28% 17.07% 21.35% 23.72% 19.40% 28.45% 20.55% 30.00% 12.00% 22.02% 8.09% 8.09% 13.00% 13.00% 16.50% 18.40% 1.85% • Based on the OIC Statement of Investment ObJectives and Policy Framework for the Oregon Public Employees Reuremcnt Fund, revised as of December 3, 2014. The revised allocauon was adopted at the June 3, 2015 OIC meet mg. Discount Rate The discount rate used to measure the total pension liability was 7.50 percent for the Defined Benefit Pension Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments for the Defined Benefit Pension Plan was applied to all periods of projected benefit payments to determine the total pension liability. r4%] Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Sensitivity of the County's Proportionate share of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the County's proportionate share of the net pension liability (asset) calculated using the discount rate of 7.50 percent, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage point lower (6.50 percent) or 1 -percentage point higher (8.50 percent) than the current rate: 1% Decrease Discount Rate 1% Increase (6.50%) (7.50%) (8.50%) Proportionate share of Net Pension Liability (Asset) $ 150,796,254 $ 93,391,575 $ 45,411,307 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued OPERS financial report that can be found at http://www.oregon.gov/pers. D. Post -Employment Benefits Oregon Public Employees Retirement System — Retirement Health Insurance Account (RHIA) Plan Description As a member of Oregon Public Employees Retirement System (OPERS) the County contributes to the Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-sharing, multiple -employer, defined benefit, other postemployment benefit plan administered by OPERS. RHIA pays a monthly contribution (currently $60 per month) toward the cost of Medicare companion health insurance premiums of eligible retirees. Oregon Revised Statute (ORS) 238.420 established this trust fund. Authority to establish and amend the benefit provisions of RHIA reside with the Oregon Legislature. The Plan is closed to new entrants after January 1, 2004. OPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Oregon Public Employees Retirement System, PO Box 23700, Tigard, OR 97281-3700. Funding Policy. Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of the plan members and the participating employers were established and may be amended only by the Oregon Legislature. ORS require that an amount equal to $60, or the total monthly cost of Medicare companion health insurance premiums coverage, whichever is less, shall be paid from the Retirement Health Insurance Account established by the employer, and any monthly cost in excess of $60 shall be paid by the eligible retired member in the manner provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium cost the member must: (1) have eight years or more of qualifying service in PERS at the time of retirement or receive a disability allowance as if the member had eight years or more of creditable service in PERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in a PERS-sponsored health plan. A surviving spouse or dependent of a deceased PERS retiree who was eligible to receive the subsidy is eligible to receive the subsidy if he or she (1) is receiving a retirement benefit or allowance from PERS or (2) was insured at the time the member died and the member retired before May 1, 1991. Participating public employers are contractually required to contribute to RHIA at a rate assessed each year by OPERS, 0.59% of annual covered payroll for Tier 1/Tier 2 employees, 0.49% for OPSRP employees. The OPERS Board of Trustees sets the employer contribution rate based on the annual required contribution of the employers (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) of the plan over a period not to exceed thirty years. The County's contributions to RHIA which equaled the required contributions each year, were included with the payments for the retirement plan described in Note 4.0 above. CZ! Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Other Post -Employment Benefits (OPEB) - Deschutes County Retiree Health Plan Plan Description The Deschutes County Retiree Health Plan is a single -employer defined benefit postemployment healthcare plan that provides medical benefits to eligible retired employees of Deschutes County and Deschutes County 9-1-1 Service District and their beneficiaries. The plan has two components: the Self -Pay Health Plan which is required by Oregon Revised Statutes 243.303 to provide retirees with group health and dental insurance from the date of retirement to age 65 at the same rate provided to current employees and the Subsidized Health Plan under which the County pays all or part of the health care costs for eligible retirees under several collective bargaining agreements. The criteria to determine whether an employee is eligible include: years of service, employee age, disability due to line of duty and whether the employee has vested in the respective retirement plan. Funding Policy The County funds the benefits on a pay-as-you-go basis. Since the total annual contribution in the current year was less than the Annual Required Contribution, a liability is presented on the County's Statement of Net Position. Annual OPEB Cost and Net OPEB Obligation The County's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the County's annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the County's net OPEB obligation to Deschutes County Retiree Health Plan: Annual required contribution $ 3,611,869 Interest on the net OPEB obligation 608,504 Adjustment to the ARC (1,034,847) Annual OPEB expense 3,185,526 Estimated contributions (1,343,754) Increase in net OPEB obligation 1,841,772 Net OPEB obligation, beginning of year 20,283,458 Net OPEB obligation, end of year $ 22,125,230 The County's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for Fiscal Year 2017 was as follows: Fiscal Year Ending Percentage of Annual Annual OPEB Cost Contributions OPEB Cost Contributed Net OPEB Obligation June 30, 2015 $ 2,991,089 $ 1,093,108 36.55% $ 18,355,546 June 30, 2016 3,096,487 1,168,575 37.74% 20,283,458 June 30, 2017 3,185,526 1,343,754 42.18% 22,125,230 Funded Status and Funding Progress. As of June 30, 2017, the most recent actuarial valuation date, the Plan was considered unfunded. The actuarial accrued liability for benefits was $34,644,237, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $34,644,237. Of these amounts, $14,079,462 related to the Subsidized Health Plan and $20,564,775 related to the Self -Pay Health Plan. The covered payroll (annual payroll of active employees covered by the Plan) was $63,045,462 and the ratio of the UAAL to the covered payroll was 54.95%. G1.i Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information on the following page, presents trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Assumptions used in calculating the actuarial liabilities associated with the Deschutes County Retiree Health Plan include a 3% investment return; an assumed inflation rate of 2.5%; an insurance premium annual trend rate of 8.0% for Fiscal Year 2017, reducing to 5% over a 10 year period; a retiree health claims annual trend rate of 9.0% for Fiscal Year 2017, reducing to 5.0% over a 10 year period; and retirement rates used by Oregon PERS adjusted for County trends. The unfunded actuarial liability as of June 30, 2017, valuation is being amortized over a 30 year open period. The Entry Age Normal (EAN) Actuarial Cost Method is used to determine the Normal Cost and Actuarial Accrued Liability. Under this method, the actuarial present value of the projected benefits of each active employee included in the valuation is allocated on a level dollar basis over the service of the active employee between assumed Entry Age (date of hire) and assumed Exit Age(s). The portion of this actuarial present value allocated to the valuation year is called the normal cost for that active employee. The sum of these individual normal costs is the Plan's Normal Cost for the valuation year. The portion of the actuarial present value of all projected benefits (including benefits for non-active participants) that is not provided for at the valuation date by the actuarial present value of future normal costs is called the Actuarial Accrued Liability. Under this method, the actuarial gains (losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability. The Deschutes County Retiree Health Plan is deemed "unfunded" in accordance with the relevant GASB statements. The table below presents a schedule of funding progress for the most recent actuarial valuations for the County's postretirement health plans. Actuarial Valuation Date June 30, 2013 June 30, 2015 June 30, 2017 Unfunded UAAL as a Actuarial (Overfunded) Percentage Actuarial Accrued AAL Funded Covered of Covered Value of Liability (AAL) (UAAL) Ratio Payroll Payroll Assets a (b) (b -a) (a/b) (c) (b -a/c) $ 38,310,071 $ 38,310,071 0.00% $ 51,566,646 74.29% 32,004,383 32,004,383 0.00% 57,844,601 55.33% 34,644,237 34,644,237 0.00% 63,045,462 54.95% E. Landfill Closure and Postclosure Care Costs State and Federal laws and regulations require that the County place a final cover on its landfill sites and perform certain maintenance and monitoring functions at the sites for a minimum of 30 years after closure. In addition to operating expenses related to current activities of the landfill site, an expense provision and related liability are recognized based on the estimated future closure and postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used each year. It is estimated that the total liability for closure and postclosure is $19,882,276, the current cost of equipment, facilities and services required to close, monitor and maintain the landfill and transfer stations. Deschutes County, Oregon Notes to Financial Statements June 30, 2017 The closure and postclosure costs are based on engineering estimates of 66.2% usage of Knott Landfill (8,275,000 cubic yards used of 12,500,000 cubic yards available). Through June 30, 2017, $14,243,057 has been recognized as expense, $2,744,321 has been paid and $11,498,736 is reported as a liability at June 30, 2017. Based on current estimated costs, an additional $5,639,219 will be recognized as closure and postclosure expense through 2029, the date the landfill is currently projected to be filled to capacity. For the past several years, the County has designated resources for future closure and postclosure care and it anticipates continuing to do so. The County meets the "Local Government Financial Test" which provides financial assurance as to the County's ability to meet its financial obligations for closure and postclosure. F. Fund Structure The County maintains certain additional sub -funds for specific management needs. These sub -funds are consolidated into the appropriate fund for financial reporting purposes as required by generally accepted accounting principles. Major Funds — Governmental General Fund — accounts for the financial operations of the County which are not accounted for in any other fund. Principal sources of revenues are property taxes and revenues from the State of Oregon and Federal government. Expenditures are primarily for general government activities including assessment, taxation, district attorney, and county clerk. Sub -funds of the General Fund: Economic Development — loan repayment and interest revenues for loans and grants to business and not-for-profit entities. Court Technology Reserve — transfers in and available resources for upgrades to Video Arraignment equipment. Assessor, Clerk & Tax Reserve — transfers in and available resources for the upgrade or replacement of the assessment and taxation system for the County's property tax activities and for Clerk's election equipment. Humane Society of Redmond — general resources to fund loans to Brightside Animal Clinic, formerly known as the Humane Society of Redmond. Project Development — transfers in, proceeds from sale of County lands and inter -fund rents. Resources are transferred to debt service funds and used to acquire real property for use by the County. General County Projects — property taxes and inter -fund charges for upgrades, remodels and major maintenance projects of existing County real property. General Capital Reserve — transfers in and available resources designated for building remodel and future major maintenance of County buildings. Community Justice - Juvenile — state grants and fees for juvenile delinquency programs within the County. Code Abatement — available resources for enforcement of County solid waste and sanitation codes. Vehicle Maintenance and Replacement — transfers from County funds and departments for vehicle replacement and repair. Sheriff s Office — revenues from Sheriff's services and payments from Countywide and Rural Law Enforcement Districts, pursuant to intergovernmental agreements, used for public safety, including the operation of the adult jail. Countywide Law Enforcement District (District #1) — property taxes used to fund Sheriffs Office countywide public safety activities, including the operation of the adult jail. Rural Law Enforcement District (District #2) — property taxes used to fund Sheriff's Office public safety in rural areas. Road — State gas tax apportionment and Federal payments for building and maintaining public roads and highways. ChM Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Deschutes County 9-1-1 County Service District — property taxes, charges for services and grants for operations of countywide emergency call center. Sub -fund of Deschutes County 9-1-1 County Service District: Deschutes County 9-1-1 County Service District Equipment Reserve — transfer from operating fund for future capital asset requirements. Health Services— fees for services, Federal and State grants for community wide health care, mental health services and counseling. PERS Reserve — Charges to County's operating funds and General Fund transfers to maintain a reserve for increases in the PERS rate. Major Funds — Proprietary — Enterprise Solid Waste — fees and charges for services for the operation, maintenance, closure and postclosure monitoring of the County's sanitary landfill and transfer and recycle stations. Fair & Expo Center — fees, inter -fund transfers and property taxes for the operation of a fair and expo center, annual county fair and payments for debt service. Nonmajor Governmental Funds Special Revenue Funds Justice Court — fines, fees and General Fund transfers for operating a justice court. Industrial Lands Proceeds — proceeds from land sales and lease payments for industrial development. This fund was inactivated at June 30, 2017. Park Acquisition and Development — apportionment from the State of Oregon from recreational vehicle fees. Park Development Fees — fees paid by developers in lieu of land donation for park development. County School — local taxes and Federal forest receipts for education. Special Transportation — State grants for transportation. Taylor Grazing — Federal funds administered by State for rangeland improvement. Transient Room Tax — lodging tax for promotion of tourism and County services. Video Lottery — State's video lottery apportionment for grants promoting economic development. Transient Room Tax -1 % — lodging taxes for marketing of recreational facilities. Foreclosed Land Sales — land sale proceeds for supervision and maintenance of properties acquired through tax foreclosure. Victims' Assistance — grants and General Fund transfers for providing assistance to crime victims. Law Library — State shared revenues for supporting law library services. County Clerk Records — fees for upgrading storage and retrieval systems. Court Facilities — fines and fees to provide security in the court building. R Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Communications System Reserve — accumulated resources which will be used for replacement of the countywide communication system. Community Development — fees and charges for services for planning, building safety, education and public services. CDD - Groundwater Partnership — transfers for maintenance of water quality and open space and fees from developers for the protection of groundwater, including rebates for replacement of septic systems. Newberry Neighborhood — proceeds from land sales and grants for maintenance of water quality and open space. GIS (Geographic Information Systems) Dedicated — recording fees and sales for map data system. Natural Resource Protection — grants for the control of noxious weeds and promotion of healthy forests. Federal Forest Title III — federal monies for grants related to National Forest activities in Deschutes County. Surveyor — fees for survey measurements, plat reviews and document filing. Public Land Corner Preservation — fees for maintaining permanent monuments of survey corner positions. Countywide Transportation SDC Improvement — fees from developers and builders for upgrades and expansion of county road infrastructure. Dog Control — licenses, fees and donations for animal control. Adult Parole and Probation — charges for services and State Department of Corrections grant for operation of County justice program. Deschutes County Extension and 4-H Service District — property taxes for Oregon State University's Extension Service programs. Sub -fund of Deschutes County Extension and 4-H Service District: Deschutes County Extension and 4-H Service District Reserve Fund — transfer from operations for future capital asset requirements. Debt Service Fund Full Faith and Credit Debt Service Fund — long-term operating lease payments and inter -fund transfers for debt service payments on bonds issued for remodel and acquisition of real property, purchase of long-lived personal property and funding of pension liability. Capital Project Fund Resources from inter -fund transfers for Road's Capital Improvement Plan. Nonmajor Proprietary Fund — Enterprise Fund RV Park — charges for space rental and transfers for the operation and maintenance of the County's recreational vehicle park and debt service. Nonmajor Proprietary Funds — Internal Service Funds Facilities — interfund charges for custodial, repairs and maintenance for County facilities. Administrative Services — interfund charges for services provided by County administration. Board of County Commissioners — interfund charges for services provided by the County's commissioners. RM Deschutes County, Oregon Notes to Financial Statements June 30, 2017 Finance — interfund charges for services provided by Finance Department. Finance Reserve — interfund charges for purchase of financial software. Legal — interfund charges for services provided by Legal Department. Human Resources — interf ind charges for services provided by the Human Resources Department. Information Technology — interfund charges for services provided by IT Department. Information Technology Reserve — interfund charges for future technology improvements. Insurance — interfund charges for general liability, property, vehicle, workers' compensation and unemployment insurance. Health Benefits — interfund charges for medical and dental insurance. Required Supplementary Information As of and for the Year Ended June 30, 2017 Deschutes County, Oregon This page left intentionally blank. See notes to required supplementary information 72 Totals may not add due to rounding Deschutes County, Oregon Schedule of Proportionate Share of the Net Pension Liability (Asset) Oregon Public Employees Reitrement System Last 10 Fiscal Years* 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Proportion of the net pension liability (asset) N/A N/A N/A N/A N/A N/A 0.61% 0.61% 0.64% 0.62% Proportionate share of the net pension liability (asset) N/A N/A N/A N/A N/A N/A 31,325,022 (13,913,943) 36,983,685 93,391,575 Covered payroll N/A N/A N/A N/A N/A N/A 53,294,382 55,105,388 57,844,601 59,448,532 Proportionate share of the net pension liability (asset) as a percentage of its covered payroll N/A N/A N/A N/A N/A N/A 58.78% (25.25)% 63.94% 157.10% Plan fiduciary net position as a percentage of the total pension liability N/A N/A N/A N/A N/A N/A 91.97% 103.59% 88.43% 80.50% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year were determined as of 6/30. See notes to required supplementary information 72 Totals may not add due to rounding Deschutes County, Oregon Schedule of Employer Contributions Oregon Public Employees Retirement System Last 10 Fiscal Years* See notes to required supplementary information 73 Totals may not add due to rounding 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Contractually Required contributions N/A N/A N/A N/A N/A N/A N/A N/A $5,012,940 $5,785,558 $5,971,465 Contributions in relation to the contractually required contribution N/A N/A N/A N/A N/A N/A N/A N/A 5,012,940 5,785,558 5,971,465 Contribution deficiency (excess) N/A N/A N/A N/A N/A N/A N/A N/A - - - Covered payroll N/A N/A N/A N/A N/A N/A N/A N/A 57,844,601 59,448,532 59,448,532 Contributions as a percentage of covered - payroll N/A N/A N/A N/A N/A N/A N/A N/A 8.67% 9.73% 10.04% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year were determined as of 6/30. See notes to required supplementary information 73 Totals may not add due to rounding Deschutes County, Oregon General Fund Operations Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 REVENUES Local Taxes - property Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Grants and Donations Intergovernmental State Federal Total revenues EXPENDITURES General government Assessor Clerk and Elections Board of Property Tax Appeal District Attorney Tax Office Property Management Administration Other Health and Welfare Veterans' Services Total Operating contingency Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES) Appropriation transfers out Transfers in Transfer out: District Attorney Non -Departmental Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of Year Fund balance - End of Year Adjustment to generally accepted accounting principles (GAAP) basis: Unrealized gain (loss) on investments Economic Development Court Technology Reserve Assessment,Taxation & Clerk Reserve Humane Society of Redmond Project Development General County Projects General Capital Reserve Community Justice Juvenile Code Abatement Vehicle Maintenance & Replacement Fund balance - US GAAP Basis See notes to required supplementary information Totals may not add due to rounding Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 26,292,821 $ 26,292,821 $ 26,346,120 $ 53,299 32,525 32,525 33,000 475 - - 90 90 119,000 119,000 128,998 9,998 1,932,762 1,932,762 2,079,385 146,623 - - 50,000 50,000 2,767,749 2,767,749 2,830,867 63,118 500,000 500,000 500,000 - 31,644,857 31,644,857 31,968,459 323,602 4,187,123 4,187,123 3,993,958 193,165 2,043,672 2,043,672 1,684,783 358,889 68,890 68,890 65,175 3,715 6,402,385 6,484,547 6,231,230 253,317 812,314 812,314 785,346 26,968 303,213 275,729 247,568 28,161 1,273,153 1,273,153 1,268,363 4,790 422,673 15,513,423 8,979,918 24,493,341 7,151,516 313,122 (10,980) (17,865,428) (17,563,286) (10,411,770) 10,411,770 MAI 422,673 15,568,101 8,396,649 23,964,750 7,680,107 (528,591) 313,122 (10,980) (17,865,428) (18,091,877) (10,411,770) 10,411,770 403,775 18,898 14,680,198 887,903 - 8,396,649 14,680,198 0')RA 55') 17,288,261 260,000 (10,980) (1758565310) (17,607,290) (319,030) 11,308,301 10,989,271 (24,373) 428,028 117,850 859,342 (211,369) 1,013,473 928,119 7,275,557 1,355,839 74,277 1 mn 710 $ 23,826,733 9,608,154 (528,591) 53,122 9,118 (475,469) 10,092,740 896,531 in eRe ��i Deschutes County, Oregon Deschutes County Sheriffs Office Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties Charges for services Contributions and donations Other Intergovernmental Local State Federal Total revenues EXPENDITURES Public Safety Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year See notes to required supplementary information Totals may not add due to rounding $ 501,000 $ 501,000 $ 562,749 $ 61,749 519,118 519,118 706,586 187,468 60,000 60,000 64,794 4,794 37,000 37,000 192,662 155,662 39,304,486 39,304,486 29,771,679 (9,532,807) 2,596,361 2,596,361 2,589,112 (7,249) 38,681,223 38,681,223 37,046,703 1,634,520 38,681,223 38,681,223 37,046,703 1,634,520 7,357,433 7,357,433 - 7,357,433 46,038,656 46,038,656 37,046,703 8,991,953 (2,878,496) (2,878,496) (2,878,496) - 3,151,787 3,151,787 3,151,787 - (273,291) (273,291) (273,291) - 2,878,496 2,878,496 2,878,496 - VA Deschutes County, Oregon Countywide Law Enforcement District Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 REVENUES Local Taxes - property Investment earnings Total revenues EXPENDITURES Sheriffs Services Public Safety Total expenditures Contingency Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year See notes to required supplementary information Totals may not add due to rounding Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget $ 21,433,596 $ 21,433,596 $ 21,451,704 $ 18,108 - - 96,069 96,069 21,433,596 21,433,596 21,547,773 114,177 25,625,198 25,625,198 20,436,277 5,188,921 25,625,198 25,625,198 20,436,277 5,188,921 625,118 625,118 - 625,118 (4,816,720) (4,816,720) 1,111,496 5,928,216 4,816,720 4,816,720 5,840,997 1,024,277 $ - $ - 6,952,493 $ 6,952,493 Mel $ 6,939,571 Deschutes County, Oregon Rural Law Enforcement District Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 REVENUES Local Taxes - property Investment earnings Total revenues EXPENDITURES Public safety Total expenditures Contingency Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year See notes to required supplementary information Totals may not add due to rounding Budgeted Amounts Original Budget Final Budget $ 9,443,083 $ 9,443,083 9,443,083 9,443,083 Variance with Actual Final Budget $ 9,618,081 $ 174,998 77,921 77,921 13,052,358 13,052,358 8,633,860 4,418,498 13,052,358 13,052,358 8,633,860 4,418,498 1,468,942 1,468,942 - 1,468,942 (5,078,217) (5,078,217) 1,062,141 6,140,358 5,078,217 5,078,217 5,478,335 400,118 $ - $ - 6,540,476 $ 6,540,476 MA �\ $ 6,528,699 Deschutes County, Oregon Road Department Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 REVENUES Local Special assessments Investment earnings Rents Charges for services Intergovernmental Local State Federal Total revenues EXPENDITURES County roads Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Adjustment to generally accepted accounting principles (GAAP) basis: Unrealized gain (loss) on investments Fund balance - US GAAP Basis See notes to required supplementary information Totals may not add due to rounding Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 80,000 $ 80,000 $ 70,655 $ (9,345) 66,300 66,300 101,644 35,344 870 870 1,068 198 1,697,253 1,697,253 1,751,059 53,806 847,000 847,000 488,114 (358,886) 13,064,616 13,064,616 13,524,639 460,023 1,825,000 1,825,000 1,888,210 63,210 17,581,039 17,581,039 17,825,387 244,348 19,803,713 19,996,213 15,732,495 4,263,718 19,803,713 19,996,213 15,732,495 4,263,718 3,566,419 3,373,919 - 3,373,919 23,370,132 23,370,132 15,732,495 7,637,637 (5,789,093) (5,789,093) 2,092,892 7,881,985 1,000,000 1,000,000 1,000,000 - (9,067,643) (9,067,643) (9,067,643) - (8,067,643) (8,067,643) (8,067,643) - (13,856,736) (13,856,736) (5,974,751) 7,881,985 rt 11,696,516 $ 11,696,516 $ 11,677,309 Deschutes County, Oregon Deschutes County 9-1-1 County Service District Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Taxes - property Investment earnings Charges for services Other Intergovernmental Local State Total revenues EXPENDITURES Emergency services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 7,570,701 $ 7,570,701 $ 7,607,481 $ 36,780 43,000 43,000 80,349 37,349 882,653 882,653 515,925 (366,728) - - 3,405 3,405 86,000 86,000 118,781 32,781 1,698,500 1,698,500 2,011,355 312,855 10,280,854 10,280,854 10,337,296 56,442 14,077,428 15,367,323 14,062,974 1,304,349 14,077,428 15,367,323 14,062,974 1,304,349 5,894,053 4,604,158 4,604,158 19,971,481 19,971,481 14,062,974 5,908,507 (9,690,627) (9,690,627) (3,725,679) 5,964,948 400,000 400,000 400,000 - 400,000 400,000 400,000 - (9,290,627) (9,290,627) (3,325,679) 5,964,948 9,290,627 9,290,627 10,604,748 1,314,121 $ - $ - 7,279,070 $ 7,279,070 Adjustment to generally accepted accounting principles (GAAP) basis: Unrealized gain (loss) on investments Deschutes County 9-1-1 Equipment Reserve Fund balance - US GAAP Basis See notes to required supplementary information 79 Totals may not add due to rounding (11,718) 3,387,917 $ 10,655,268 Deschutes County, Oregon Health Services Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 REVENUES Local Licenses and permits Investment earnings Rents Charges for services Contributions and donations Intergovernmental Local State Federal Total revenues EXPENDITURES Current - departmental Health and human services Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfer out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 139,789 $ 139,789 $ 164,203 $ 24,414 139,700 99,748 158,404 58,656 18,800 18,800 1,500 (17,300) 2,884,231 2,884,231 2,945,939 61,708 160,495 206,531 291,000 84,469 371,412 1,201,825 2,410,413 1,208,588 24,844,593 26,127,018 26,174,945 47,927 683,417 683,417 483,567 (199,850) 29,242,437 31,361,359 32,629,970 1,268,611 38,097,151 38,658,081 37,438,062 1,220,019 9,125,714 9,170,824 - 9,170,824 47,222,865 47,828,905 37,438,062 10,390,843 (17,980,428) (16,467,546) (4,808,092) 4,684,193 4,684,193 4,684,193 (445,740) (445,740) (445,740) (13,741,975) (12,229,093) (569,639) $ 343,269 $ 1,856,151 16,242,269 (28,810) $ 16,213,459 See notes to required supplementary information 80 Totals may not add due to rounding 11,659,454 11,659,454 2,726,664 $ 14,386,118 Deschutes County, Oregon PERS Reserve Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 See notes to required supplementary information 81 Totals may not add due to rounding Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 85,000 $ 85,000 $ 122,786 $ 37,786 Charges for services 850,000 850,000 827,835 (22,165) Total revenues 935,000 935,000 950,621 15,621 EXPENDITURES General services 5,000 5,000 850 4,150 Total expenditures 5,000 5,000 850 4,150 Excess (deficiency) of revenues over expenditures 930,000 930,000 949,771 19,771 Other financing sources (uses) Transfers in 2,000,000 2,000,000 2,000,000 - Total other financing sources (uses) 2,000,000 2,000,000 2,000,000 - Net change in fund balance 2,930,000 2,930,000 2,949,771 19,771 Fund balance - Beginning of year 10,290,000 10,290,000 10,321,178 31,178 Fund balance - End of year $ 13,220,000 $ 13,220,000 13,270,949 $ 50,949 Unrealized gain (loss) on investments (23,981) Total fund balance, GAAP basis - End of Year $ 13,246,968 See notes to required supplementary information 81 Totals may not add due to rounding Deschutes County, Oregon Notes to Required Supplementary Information June 30, 2017 Note 1— Adjustments from Budgetary Basis of Accounting to GAAP The County has certain governmental funds maintained for budgetary purposes that do not meet the definition of Special Revenue Funds for GAAP reporting purposes. At year-end, the ending fund balances for these funds are combined with the General Fund and Deschutes County 9-1-1 County Service District, as applicable. Note 2 — Stewardship, Compliance and Accountability The Board of County Commissioners adopts a resolution authorizing appropriations for each fund, which establishes the level by which expenditures cannot lawfully exceed appropriations. Appropriations are established at the principal object level for each department of the General Fund — program, debt service, transfers to other funds and operating contingency. For all other funds, the appropriations are established at the principal object level. P -M Other Supplementary Information As of and for the Year Ended June 30, 2017 Deschutes County, Oregon Combining and Individual Funds Statements and Schedules — Major Governmental Funds and Sub -Funds As of and for the Year Ended June 30, 2017 Deschutes County, Oregon Totals may not add due to rounding 83 Deschutes County, Oregon General Fund and Sub-Funds of General Fund Combining Balance Sheet June 30, 2017 General Court Assessor, Fund Economic Technology Clerk and Tax Operations Development Reserve Reserve ASSETS Cash and cash equivalents $ 2,548,190 $ 43,419 $ 22,360 $ 162,565 Investments, at fair value; plus accrued interest 10,916,223 186,098 95,840 696,777 Taxes receivable 755,445 - - - Accounts receivable 235,034 - - - Notes and contracts receivable - 198,511 - - Due from other funds 481,878 - - - Total assets $ 14,936,770 $ 428,028 $ 118,200 $ 859,342 LIABILITIES Accounts payable $ 967,989 $ - $ 350 $ - Due to other funds - - - - Deposits 4,341 - - - Unearned revenue 2,315,410 -- - Total liabilities 3,287,740 - 350 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 684,131 - - - Unavailable revenue - contracts of sale - - - - Total deferred inflows of resources 684,131 - - - FUND BALANCES Nonspendable - 198,511 - - Committed - 229,517 - - Assigned - - 117,850 859,342 Unassigned 10,964,898 - - - Total fund balances 10,964,898 428,028 117,850 859,342 Total liabilities, deferred inflows of resources and fund balances $ 14,936,770 $ 428,028 $ 118,200 $ 859,342 Totals may not add due to rounding 83 Due from other funds Total assets LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - contracts of sale Total deferred inflow of resources FUND BALANCES Nonspendable Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances $ 270,509 $ 4,533,624 $ 1,071,138 $ 7,275,557 $ - $ 17,571 $ 124,048 $ - 481,878 - - - 481,878 17,571 124,048 - - - 18,971 - 3,502,579 - - 3,502,579 18,971 270,509 - - - - - - 7,275,557 1,013,473 928,119 - (481,878) - - - (211,369) 1,013,473 928,119 7,275,557 $ 270,509 $ 4,533,624 $ 1,071,138 $ 7,275,557 Totals may not add due to rounding 84 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2017 Humane General General Society Project County Capital of Redmond Development Projects Reserve ASSETS Cash and cash equivalents $ - $ 191,930 $ 191,297 $ 1,376,346 Investments, at fair value; plus accrued interest - 822,638 819,927 5,899,211 Taxes receivable - - 21,177 - Accounts receivable - 16,477 38,738 - Notes and contracts receivable 270,509 3,502,579 - - Due from other funds Total assets LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - contracts of sale Total deferred inflow of resources FUND BALANCES Nonspendable Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances $ 270,509 $ 4,533,624 $ 1,071,138 $ 7,275,557 $ - $ 17,571 $ 124,048 $ - 481,878 - - - 481,878 17,571 124,048 - - - 18,971 - 3,502,579 - - 3,502,579 18,971 270,509 - - - - - - 7,275,557 1,013,473 928,119 - (481,878) - - - (211,369) 1,013,473 928,119 7,275,557 $ 270,509 $ 4,533,624 $ 1,071,138 $ 7,275,557 Totals may not add due to rounding 84 Totals may not add due to rounding 85 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2017 Community Vehicle Justice Code Maintenance & Juvenile Abatement Replacement Total ASSETS Cash and cash equivalents $ 236,083 $ 14,051 $ 193,093 $ 4,979,335 Investments, at fair value; plus accrued interest 1,011,671 60,225 827,626 21,336,235 Taxes receivable - - - 776,622 Accounts receivable 160,610 - - 450,858 Notes and contracts receivable - - - 3,971,599 Due from other funds - - - 481,878 Total assets $ 1,408,364 $ 74,277 $ 1,020,719 $ 31,996,526 LIABILITIES Accounts payable $ 52,524 $ - $ - $ 1,162,483 Due to other funds - - - 481,878 Deposits - - - 4,341 Unearned revenue - - - 2,315,410 Total liabilities 52,524 - - 3,964,112 DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes - - 703,103 Unavailable revenue - contracts of sale - -3,502,579 Total deferred inflow of resources - - 4,205,682 FUND BALANCES Nonspendable - - 469,020 Committed - - - 7,505,074 Assigned 1,355,839 74,277 1,020,719 5,369,619 Unassigned - - - 10,483,020 Total fund balances 1,355,839 74,277 1,020,719 23,826,733 Total liabilities, deferred inflows of resources and fund balances $ 1,408,364 $ 74,277 $ 1,020,719 $ 31,996,526 Totals may not add due to rounding 85 Deschutes County, Oregon Deschutes County 9-1-1 County Service District Operating Fund and Sub -Fund Combining Balance Sheet June 30, 2017 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Total assets LIABILITIES Accounts payable Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Restricted Total fund balances Total liabilities, deferred inflow of resources and fund balances Totals may not add due to rounding 86 Deschutes County 9-1-1 Des Co 9-1-1 Operating Equipment Fund Reserve Total $ 1,224,466 $ 643,879 $ 1,868,346 5,248,234 2,759,757 8,007,991 194,907 - 194,907 1,087,445 - 1,087,445 $ 7,755,053 $ 3,403,637 $ 11,158,689 $ 310,862 $ 15,720 $ 326,582 310,862 15,720 326,582 176,839 - 176,839 176,839 - 176,839 7,267,352 3,387,917 10,655,268 7,267,352 3,387,917 10,655,268 $ 7,755,053 $ 3,403,637 $ 11,158,689 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 REVENUES Taxes - property Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Intergovernmental Charges for services Contributions and donations Payments on contracts of sale Other Total revenues EXPENDITURES Current: General government Public safety Health and welfare Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in Transfers out Intra -fund: Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year General 100,000 3,734 - Fund Economic Operations Development $ 26,346,120 $ - 33,000 - 90 - 104,625 4,680 3,330,867 80,943 2,079,385 - 50,000 - 31,944,086 85,623 Court Technology 815 815 Assessor, Clerk & Tax 5,938 5,938 14,095,499 100,000 3,734 - 403,775 - - - 180,925 - 72,615 - 14,680,198 100,000 76,349 - 17,263,888 (14,377) (75,534) 5,938 260,000 (9,248,455) - - 32,000 100,000 (8,618,835) - - - (17,607,290) - 32,000 100,000 (343,402) (14,377) (43,534) 105,938 11,308,301 442,405 161,384 753,404 Totals may not add due to rounding 87 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 REVENUES Taxes - property Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Intergovernmental Charges for services Contributions and donations Payments on contracts of sale Other Total revenues EXPENDITURES Current: General government Public safety Health and welfare Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in Transfers out Intra -fund: Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Humane 836,893 General Society Project County of Redmond Development Projects $ - $ - $ 821,206 - 154 - 3,118 179,628 7,707 - 535,442 - - 124,043 - - - 262,809 - 428,713 - 3,118 1,267,980 1,091,722 General Capital 42,296 42,296 - 69,394 836,893 - 625,000 435,843 - - 694,394 1,272,735 - 3,118 573,586 (181,014) 42,296 300,000 - 489,049 (1,481,957) - - - - - 3,011,264 3,118 (608,371) (181,014) 3,542,609 (214,488) 1,621,844 1,109,132 3,732,948 Totals may not add due to rounding 88 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 REVENUES Taxes - property Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Intergovernmental Charges for services Contributions and donations Payments on contracts of sale Other Total revenues EXPENDITURES Current: General government Public safety Health and welfare Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in Transfers out Intra -fund: Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Community Vehicle 1,526,169 Justice Code Maintenance & (10,730,412) Juvenile Abatement Replacement Total $ - $ - $ - $ 27,167,326 - - - 33,000 5,989 - - 6,234 12,040 558 6,955 368,360 84,121 - - 619,563 535,310 - - 4,071,163 88,120 - - 2,430,314 645 - - 50,645 - - - 428,713 - - 38,411 38,411 726,225 558 45,365 35,213,726 - 15,106 - 15,120,625 6,209,564 - - 6,209,564 - - - 403,775 - - 508,624 1,823,006 6,209,564 15,106 508,624 23,556,971 (5,483,339) (14,548) (463,259) 11,656,756 - - 477,120 1,526,169 - - - (10,730,412) 5,464,591 - 54,980 8,662,835 (44,000) - - (8,662,835) 5,420,591 - 532,100 (9,204,243) (62,748) (14,548) 68,841 2,452,513 1,418,587 88,825 951,878 21,374,220 Totals may not add due to rounding 89 Deschutes County, Oregon Deschutes County 9-1-1 County Service District Operating Fund and Sub -Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Intra -fund: Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding 90 (3,737,396) (795,892) (4,533,28 400,000 - 400,000 - (400,000) (400,000) 400,000 (400,000) - (3,337,396) (1,195,892) (4,533,288) 10,604,748 4,583,809 15,188,557 $ 7,267,352 $ 3,387,917 $ 10,655,268 Deschutes County 9-1-1 Des Co 9-1-1 Operating Equipment Fund Reserve Total REVENUES Local Taxes - property $ 7,607,481 $ - $ 7,607,481 Investment earnings 68,631 29,571 98,202 Charges for services 515,925 - 515,925 Other 3,405 - 3,405 Intergovernmental Local 118,781 - 118,781 State 2,011,355 - 2,011,355 Total revenues 10,325,578 29,571 10,355,148 EXPENDITURES Current: Public safety 9,121,528 - 9,121,528 Capital outlay 4,941,447 825,463 5,766,909 Total expenditures 14,062,974 825,463 14,888,437 Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Intra -fund: Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding 90 (3,737,396) (795,892) (4,533,28 400,000 - 400,000 - (400,000) (400,000) 400,000 (400,000) - (3,337,396) (1,195,892) (4,533,288) 10,604,748 4,583,809 15,188,557 $ 7,267,352 $ 3,387,917 $ 10,655,268 Deschutes County, Oregon Economic Development (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 91 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 7,200 $ 7,200 $ 5,095 $ (2,105) Interfund grants - - 80,943 80,943 Loan repayments 26,667 26,667 - (26,667) Total revenues 33,867 33,867 86,038 52,171 EXPENDITURES Current - departmental: Economic development 261,867 261,867 100,000 161,867 Total expenditures 261,867 261,867 100,000 161,867 Net change in fund balance (228,000) (228,000) (13,962) 214,038 Fund balance - Beginning of year 228,000 228,000 442,405 214,405 Fund balance - End of year $ - $ - 428,443 $ 428,443 Unrealized gain (loss) on investments (416) Total fund balance, GAAP basis - End of Year $ 428,028 Totals may not add due to rounding 91 Deschutes County, Oregon Court Technology Reserve (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 92 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 1,000 $ 1,000 $ 1,029 $ 29 Total revenues 1,000 1,000 1,029 29 EXPENDITURES Current - departmental Court technology 194,000 194,000 76,349 117,651 Total expenditures 194,000 194,000 76,349 117,651 Excess (deficiency) of revenues over expenditures (193,000) (193,000) (75,320) 117,680 OTHER FINANCING SOURCES (USES) Transfers in 32,000 32,000 32,000 - Net change in fund balance (161,000) (161,000) (43,320) 117,680 Fund balance - Beginning of year 161,000 161,000 161,384 384 Fund balance - End of year $ - $ - 118,064 $ 118,064 Unrealized gain (loss) on investments (214) Total fund balance, GAAP basis - End of Year $ 117,850 Totals may not add due to rounding 92 Deschutes County, Oregon Assessor, Clerk and Tax Reserve (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Investment earnings Total revenues EXPENDITURES Current - departmental: Assessment & Taxation Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 7,500 $ 7,500 $ 7,494 $ (6) 7,500 7,500 7,494 (6) 25,000 25,000 25,000 25,000 (17,500) (17,500) 7,494 100,000 100,000 100,000 100,000 100,000 100,000 $ 833,500 $ 833,500 82,500 82,500 107,494 25,000 25,000 24,994 24,994 751,000 751,000 753,404 2,404 $ 833,500 $ 833,500 860,898 $ 27,398 Totals may not add due to rounding 93 (1,556) $ 859,342 Deschutes County, Oregon Humane Society of Redmond (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 94 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ - $ 3,118 $ 3,118 Loan repayment 53,122 53,122 - (53,122) Total revenues 53,122 53,122 3,118 (50,004) EXPENDITURES Transfer Out 53,122 53,122 - 53,122 Total expenditures 53,122 53,122 - 53,122 Net change in fund balance - - 3,118 3,118 Fund balance - Beginning of year - - (214,488) (214,488) Fund balance - End of year $ - $ - (211,369) $ (211,369) Unrealized gain (loss) on investments - Total fund balance, GAAP basis - End of Year $ (211,369) Totals may not add due to rounding 94 Deschutes County, Oregon Project Development Fund (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 95 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties $ - $ - $ 154 $ 154 Investment earnings 71,157 71,157 181,465 110,308 Rentals 461,040 461,040 535,442 74,402 Payments on contracts of sale 288,155 288,155 428,713 140,558 Intergovernmental State - - 99,645 99,645 Federal - - 24,398 24,398 Total revenues 820,352 820,352 1,269,816 449,464 EXPENDITURES General services 398,395 754,800 694,394 60,406 Total 398,395 754,800 694,394 60,406 Total expenditures 398,395 754,800 694,394 60,406 Excess (deficiency) of revenues over expenditures 421,957 65,552 575,422 509,870 OTHER FINANCING SOURCES (USES) Appropriation transfer - 356,405 - (356,405) Transfers in 300,000 300,000 300,000 - Transfer out (1,481,957) (1,481,957) (1,481,957) Net other financing sources (uses) (1,181,957) (825,552) (1,181,957) (356,405) Net change in fund balance (760,000) (760,000) (606,534) 153,465 Fund balance - Beginning of year 1,460,000 1,460,000 1,621,844 161,844 Fund balance - End of year $ 700,000 $ 700,000 1,015,310 $ 315,310 Unrealized gain (loss) on investments (1,837) Total fund balance, GAAP basis - End of Year $ 1,013,473 Totals may not add due to rounding 95 Deschutes County, Oregon General County Projects (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 96 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Taxes - property $ 810,210 $ 810,210 $ 821,206 $ 10,996 Investment earnings 11,000 11,000 9,537 (1,463) Charges for services 500,000 500,000 262,809 (237,191) Total revenues 1,321,210 1,321,210 1,093,552 (227,658) EXPENDITURES Current - departmental: General Services 1,704,975 1,704,975 1,272,735 432,240 Operating contingency 896,235 896,235 - 896,235 Total expenditures 2,601,210 2,601,210 1,272,735 1,328,475 Net change in fund balance (1,280,000) (1,280,000) (179,183) 1,100,817 Fund balance - Beginning of year 1,280,000 1,280,000 1,109,132 (170,868) Fund balance - End of year $ - $ - 929,949 $ 929,949 Unrealized gain (loss) on investments (1,831) Total fund balance, GAAP basis - End of Year $ 928,119 Totals may not add due to rounding 96 Deschutes County, Oregon General Capital Reserve (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 30,000 $ 30,000 $ 55,467 $ 25,467 Total revenues 30,000 30,000 55,467 25,467 EXPENDITURES Current - departmental: Development 1,000,000 1,000,000 -1,000,000 Total expenditures 1,000,000 1,000,000 - 1,000,000 Excess (deficiency) of revenues over expenditures (970,000) (970,000) 55,467 1,025,467 OTHER FINANCING SOURCES (USES) Transfers in 3,500,313 3,500,313 3,500,313 - Total other financing sources (uses) 3,500,313 3,500,313 3,500,313 - Net change in fund balance 2,530,313 2,530,313 3,555,780 1,025,467 Fund balance - Beginning of year 3,722,500 3,722,500 3,732,948 10,448 Fund balance - End of year $ 6,252,813 $ 6,252,813 7,288,728 $ 1,035,915 Unrealized gain (loss) on investments (13,171) Total fund balance, GAAP basis - End of Year $ 7,275,557 Totals may not add due to rounding 97 Deschutes County, Oregon Community Justice - Juvenile (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Intergovernmental Local State Total revenues EXPENDITURES Current - departmental: Public safety Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 6,050 $ 6,050 $ 5,989 $ (61) 8,000 8,000 14,299 6,299 48,840 48,840 84,121 35,281 62,100 62,100 88,120 26,020 800 800 645 (155) 20,000 20,000 20,000 - 551,762 551,762 515,310 (36,452) 697,552 697,552 728,484 30,932 6,460,099 6,460,099 6,209,564 250,535 6,460,099 6,460,099 6,209,564 250,535 858,044 858,044 - 858,044 7,318,143 7,318,143 6,209,564 1,108,579 (6,620,591) (6,620,591) (5,481,080) 1,139,511 5,464,591 5,464,591 5,464,591 - (44,000) (44,000) (44,000) - 5,420,591 5,420,591 5,420,591 - (1,200,000) (1,200,000) (60,489) 1,139,511 1,200,000 1,200,000 1,418,587 218,587 $ - $ - 1,358,098 $ 1,358,098 Totals may not add due to rounding 98 (2,259) $ 1,355,839 Deschutes County, Oregon Code Abatement (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 400 $ 400 $ 692 $ 292 Total revenues 400 400 692 292 EXPENDITURES Current - departmental: Code abatement 83,105 83,105 15,106 67,999 Total expenditures 83,105 83,105 15,106 67,999 Net change in fund balance (82,705) (82,705) (14,414) 68,291 Fund balance - Beginning of year 82,705 82,705 88,825 6,120 Fund balance - End of year $ - $ - 74,411 $ 74,411 Unrealized gain (loss) on investments (134) Total fund balance, GAAP basis - End of Year $ 74,277 Totals may not add due to rounding 99 Deschutes County, Oregon Vehicle Maintenance and Replacement (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Investment earnings Sale of equipment Total revenues EXPENDITURES Fleet Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Appropriation transfer Transfers in Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 6,000 $ 6,000 $ 8,803 $ 2,803 - - 38,411 38,411 6,000 6,000 47,213 41,213 510,000 545,000 508,624 36,376 510,000 545,000 508,624 36,376 845,226 845,226 845,226 1,355,226 1,390,226 508,624 881,602 (1,349,226) (1,384,226) (461,411) 922,815 - 35,000 - (35,000) 532,100 532,100 532,100 - 532,100 567,100 532,100 (35,000) (817,126) (817,126) 70,689 887,815 817,126 817,126 951,878 134,752 $ - $ - 1,022,567 $ 1,022,567 Totals may not add due to rounding 100 (1,848) $ 1,020,719 Deschutes County, Oregon 9-1-1 County Service District Equipment Reserve (Sub -Fund of Deschutes County 9-1-1 County Service District) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Investment earnings Total revenues EXPENDITURES Emergency services Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 30,000 $ 30,000 $ 35,732 $ 5,732 30,000 30,000 35,732 5,732 1,500,100 1,500,100 825,463 674,637 1,500,100 1,500,100 825,463 674,637 (1,470,100) (1,470,100) (789,730) 680,370 (400,000) (400,000) (400,000) - (400,000) (400,000) (400,000) - (1,870,100) (1,870,100) (1,189,730) 680,370 4,568,483 4,568,483 4,583,809 15,326 $ 2,698,383 $ 2,698,383 3,394,078 $ 695,695 Totals may not add due to rounding 101 (6,162) $ 3,387,917 Combining and Individual Funds Statements and Schedules — Nonmajor Governmental Funds and Sub - Funds As of and for the Year Ended June 30, 2017 Deschutes County, Oregon Deschutes County, Oregon Nonmajor Governmental Funds Combining Balance Sheet June 30, 2017 Totals may not add due to rounding 103 Total Special Nonmajor Revenue Debt Capital Governmental Funds Service Fund Project Fund Funds ASSETS Cash and cash equivalents $ 2,882,360 $ 97,818 $ 1,489,386 $ 4,469,565 Investments, at fair value; plus accrued interest 12,348,841 419,263 6,383,719 19,151,823 Taxes receivable 719,695 - - 719,695 Accounts receivable 191,170 41,025 - 232,195 Notes and contracts receivable 917,857 - - 917,857 Total assets $ 17,059,922 $ 558,106 $ 7,873,106 $ 25,491,134 LIABILITIES Liabilities: Accounts payable $ 731,385 $ - $ 63,420 $ 794,806 Unearned revenues 124,114 - 124,114 Total liabilities 855,500 63,420 918,920 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 11,051 - 11,051 Total deferred inflows of resources 11,051 11,051 FUND BALANCES Nonspendable 917,857 - - 917,857 Restricted 15,052,912 - 7,809,685 22,862,597 Committed 222,603 558,106 - 780,709 Total fund balances 16,193,371 558,106 7,809,685 24,561,163 Total liabilities, deferred inflows of resources and fund balances $ 17,059,922 $ 558,106 $ 7,873,106 $ 25,491,134 Totals may not add due to rounding 103 Deschutes County, Oregon Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2017 Totals may not add due to rounding 104 Total Special Nonmajor Revenue Debt Capital Governmental Funds Service Funds Project Fund Funds REVENUES Local Taxes - property $ 472,249 $ - $ - $ 472,249 Taxes - other 6,408,477 - - 6,408,477 Licenses and permits 1,607,199 - - 1,607,199 Fines, forfeitures and penalties 1,031,667 - - 1,031,667 Investment earnings 175,394 9,226 64,905 249,525 Rents 18,250 1,226,216 - 1,244,466 Charges for services 7,951,038 1,166,512 - 9,117,550 Contributions and donations 4,299 - - 4,299 Intergovernmental Local 186,913 398,833 - 585,746 State 7,037,658 - - 7,037,658 Federal 877,278 - - 877,278 Total revenues 25,770,420 2,800,787 64,905 28,636,112 EXPENDITURES Current: General government 11,240,302 - - 11,240,302 Public safety 6,343,189 - - 6,343,189 County roads 1,156,240 - - 1,156,240 Health and welfare 1,150,793 - - 1,150,793 Education 263,106 - - 263,106 Debt service: Principal - 2,895,157 - 2,895,157 Interest - 2,151,095 - 2,151,095 Trustee fees - 2,500 - 2,500 Capital outlay 9,161 - 872,662 881,823 Total expenditures 20,162,791 5,048,752 872,662 26,084,205 Excess (deficiency) of revenues over expenditures 5,607,629 (2,247,964) (807,758) 2,551,907 OTHER FINANCING SOURCES (USES) Transfers in 971,438 2,333,510 8,617,443 11,922,391 Transfers out (5,076,091) - - (5,076,091) Total other financing sources (uses) (4,104,653) 2,333,510 8,617,443 6,846,300 Net change in fund balances 1,502,976 85,546 7,809,685 9,398,207 Fund balances - Beginning of year 14,690,395 472,561 - 15,162,956 Fund balances - End of year $ 16,193,371 $ 558,106 $ 7,809,685 $ 24,561,163 Totals may not add due to rounding 104 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Liabilities: Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Nonspendable Restricted Committed Total fund balance Total liabilities, deferred inflow of resources and fund balance Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2017 232,662 107,212 6,784 112,235 - - - 112,235 232,662 107,212 6,784 $ 114,948 $ 233,306 $ 107,212 $ 147,137 Totals may not add due to rounding 105 Park Park Justice Acquisition & Development Special Court Development Fees Transportation $ 22,394 $ 37,105 $ 20,282 $ 25,768 92,554 159,039 86,930 110,445 - 37,162 - 10,924 $ 114,948 $ 233,306 $ 107,212 $ 147,137 $ 2,712 $ 644 $ - $ 140,354 232,662 107,212 6,784 112,235 - - - 112,235 232,662 107,212 6,784 $ 114,948 $ 233,306 $ 107,212 $ 147,137 Totals may not add due to rounding 105 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Liabilities: Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Nonspendable Restricted Committed Total fund balance Total liabilities, deferred inflow of resources and fund balance Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2017 Totals may not add due to rounding 106 Taylor Transient Video Transient Grazing Room Tax Lottery Room Tax -1% $ 7,872 $ 104,705 $ 40,792 $ 88,223 33,739 448,779 174,841 378,137 - 619,097 - 88,443 - - 1,700 - $ 41,610 $ 1,172,581 $ 217,333 $ 554,803 $ - $ 104,563 $ 59,800 $ 71 - 104,563 59,800 71 41,610 1,068,017 157,533 554,732 41,610 1,068,017 157,533 554,732 $ 41,610 $ 1,172,581 $ 217,333 $ 554,803 Totals may not add due to rounding 106 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Liabilities: Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Nonspendable Restricted Committed Total fund balance Total liabilities, deferred inflow of resources and fund balance Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2017 County Foreclosed Victims' Law Clerk Land Sales Assistance Library Records $ 2,278 $ 17,654 $ 81,763 $ 61,083 9,764 75,668 350,448 261,809 - 9,191 - - $ 12,042 $ 102,513 $ 432,210 $ 322,892 $ 198 $ 240 $ - $ 980 11,845 102,273 432,210 321,912 11,845 102,273 432,210 321,912 $ 12,042 $ 102,513 $ 432,210 $ 322,892 Totals may not add due to rounding 107 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2017 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Nonspendable - - - - Restricted 22,004 5,297,543 37,932 Committed - 9,035 - - Total fund balance 22,004 9,035 5,297,543 37,932 Total liabilities, deferred inflow of resources and fund balance $ 22,004 $ 9,035 $ 5,538,987 $ 37,932 Totals may not add due to rounding 108 Des Co CDD Court Communication Community Groundwater Facilities System Res Development Partnership ASSETS Cash and cash equivalents $ 2,390 $ 1,709 $ 1,039,292 $ 7,176 Investments, at fair value; plus accrued interest 10,242 7,326 4,453,267 30,756 Taxes receivable - - - - Accounts receivable 9,372 - 46,428 - Notes and contracts receivable - - - - Total assets $ 22,004 $ 9,035 $ 5,538,987 $ 37,932 LIABILITIES Liabilities: Accounts payable $ - $ - $ 166,671 $ - Unearned revenues - - 74,774 Total liabilities - - 241,445 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Nonspendable - - - - Restricted 22,004 5,297,543 37,932 Committed - 9,035 - - Total fund balance 22,004 9,035 5,297,543 37,932 Total liabilities, deferred inflow of resources and fund balance $ 22,004 $ 9,035 $ 5,538,987 $ 37,932 Totals may not add due to rounding 108 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2017 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Nonspendable 917,857 - - - Restricted 86,872 183,337 614,383 270,166 Committed - - - - Total fund balance 1,004,729 183,337 614,383 270,166 Total liabilities, deferred inflow of resources and fund balance $ 1,004,729 $ 183,511 $ 629,686 $ 275,052 Totals may not add due to rounding 109 Natural Federal Newberry GIS Resource Forest Title Neighborhood Dedicated Protection III ASSETS Cash and cash equivalents $ 16,434 $ 34,715 $ 106,698 $ 52,033 Investments, at fair value; plus accrued interest 70,438 148,795 457,324 223,020 Taxes receivable - - - - Accounts receivable - - 65,663 - Notes and contracts receivable 917,857 - - - Total assets $ 1,004,729 $ 183,511 $ 629,686 $ 275,052 LIABILITIES Liabilities: Accounts payable $ - $ 174 $ 15,303 $ 4,886 Unearned revenues - - - - Total liabilities - 174 15,303 4,886 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Nonspendable 917,857 - - - Restricted 86,872 183,337 614,383 270,166 Committed - - - - Total fund balance 1,004,729 183,337 614,383 270,166 Total liabilities, deferred inflow of resources and fund balance $ 1,004,729 $ 183,511 $ 629,686 $ 275,052 Totals may not add due to rounding 109 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2017 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Nonspendable - - - - Restricted 164,866 676,851 2,300,000 - Committed - - - 101,333 Total fund balance 164,866 676,851 2,300,000 101,333 Total liabilities, deferred inflow of resources and fund balance $ 164,866 $ 676,851 $ 2,300,000 $ 188,112 Totals may not add due to rounding 110 Public Land Countywide Corner Transportation Surveyor Preservation SDC Imp Dog Control ASSETS Cash and cash equivalents $ 31,188 $ 128,043 $ 435,100 $ 35,160 Investments, at fair value; plus accrued interest 133,677 548,808 1,864,900 150,699 Taxes receivable - - - - Accounts receivable - - - 2,253 Notes and contracts receivable - - - - Total assets $ 164,866 $ 676,851 $ 2,300,000 $ 188,112 LIABILITIES Liabilities: Accounts payable $ - $ - $ - $ 86,779 Unearned revenues - - - - Total liabilities - - - 86,779 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Nonspendable - - - - Restricted 164,866 676,851 2,300,000 - Committed - - - 101,333 Total fund balance 164,866 676,851 2,300,000 101,333 Total liabilities, deferred inflow of resources and fund balance $ 164,866 $ 676,851 $ 2,300,000 $ 188,112 Totals may not add due to rounding 110 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2017 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Liabilities: Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Nonspendable Restricted Committed Total fund balance Total liabilities, deferred inflow of resources and fund balance Totals may not add due to rounding 111 Deschutes County Total Nonmajor Adult Parole Extension Special $ 330,937 $ 151,567 $ 2,882,360 1,417,799 649,636 12,348,841 - 12,155 719,695 8,477 - 191,170 - - 917,857 $ 1,757,213 $ 813,358 $ 17,059,922 $ 69,435 $ 78,577 $ 731,385 - 49,341 124,114 - 11,051 11,051 - 11,051 11,051 - - 917,857 1,687,778 674,390 15,052,912 - - 222,603 1,687,778 674,390 16,193,371 $ 1,757,213 $ 813,358 $ 17,059,922 Deschutes County, Oregon Deschutes County 4-H County Service District - Operating Fund and Sub -Funds Combining Balance Sheet June 30, 2017 Operating Reserve Fund Fund Total ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Total assets LIABILITIES Accounts payable Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property tax Total deferred inflows of resources FUND BALANCES Restricted Total fund balances Total liabilities, deferred inflows of resources and fund balances Totals may not add due to rounding 112 $ 50,785 $ 100,782 $ 151,567 217,672 431,964 649,636 12,155 - 12,155 $ 280,612 $ 532,746 $ 813,358 $ 78,577 $ - $ 78,577 49,341 - 49,341 127,917 - 127,917 11,051 - 11,051 11,051 - 11,051 141,644 532,746 674,390 141,644 532,746 674,390 $ 280,612 $ 532,746 $ 813,358 Totals may not add due to rounding 113 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 Industrial Park Park Justice Lands Acquisition & Development Court Proceeds Development Fees REVENUES Local Taxes - property $ $ $ - $ - Taxes - other - - Licenses and permits - - 16,031 Fines, forfeitures and penalties 545,628 - Investment earnings 758 226 1,222 731 Rents - - - - Charges for services Contributions and donations Intergovernmental Local - State 307,871 Federal - - - - Total revenues 546,386 226 309,093 16,762 EXPENDITURES Current: General government 621,236 46,225 31,249 1,422 Public safety - - - - County roads - - - Health and welfare - - - Education - - - Capital outlay - - - - Total expenditures 621,236 46,225 31,249 1,422 Excess (deficiency) of revenues over expenditures (74,850) (45,999) 277,844 15,340 OTHER FINANCING SOURCES (USES) Transfers in 25,000 - - - Transfers out - - (190,000) - Total other financing sources (uses) 25,000 - (190,000) - Net change in fund balances (49,850) (45,999) 87,844 15,340 Fund balance - Beginning of year 162,085 45,999 144,817 91,871 Fund balance - End of year $ 112,235 $ - $ 232,662 $ 107,212 Totals may not add due to rounding 113 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 REVENUES Local Taxes - property $ Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Intergovernmental Local State Federal _ Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Education Capital outlay County Special Taylor Transient School Transportation Grazing Room Tax Video Lottery 188 1,459 262,919 632,398 - 43,687 5,607,417 278 7,978 2,148 5,927 - 693,636 6,205 5,615,395 695,784 - 1,855,995 681,265 - 706,520 - 263,106 - - - - Total expenditures 263,106 706,520 - 1,855,995 681,265 Excess (deficiency) of revenues over expenditures - (28,976) 6,205 3,759,400 14,519 OTHER FINANCING SOURCES (USES) Transfers in - - Transfers out (3,666,580) Total other financing sources (uses) - (3,666,580) - Net change in fund balances (28,976) 6,205 92,820 14,519 Fund balance - Beginning of year 35,760 35,405 975,198 143,014 Fund balance - End of year $ $ 6,784 $ 41,610 $ 1,068,017 $ 157,533 Totals may not add due to rounding 114 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 Totals may not add due to rounding 115 Des Co CDD Court Communication Community Groundwater Newberry Facilities System Res Development Partnership Neighborhood REVENUES Local Taxes - property $ - $ - $ - $ - $ Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties 137,048 - 2,135 - - Investment earnings 474 5,091 37,314 130 40,611 Rents - - 18,250 - - Charges for services - - 6,816,330 - Contributions and donations - - - - Intergovernmental Local - - 90,177 - State - - 703 - Federal - - 40,547 - - Total revenues 137,521 5,091 7,005,455 130 40,611 EXPENDITURES Current: General government - 810,530 5,517,688 67,500 - Public safety 165,535 - - - - County roads - - - - - Health and welfare - - - - Education - - - - Capital outlay - - - - Total expenditures 165,535 810,530 5,517,688 67,500 - Excess (deficiency) of revenues over expenditures (28,014) (805,439) 1,487,767 (67,370) 40,611 OTHER FINANCING SOURCES (USES) Transfers in - - - 100,000 - Transfers out - - (268,120) - (154,888) Total other financing sources (uses) - - (268,120) 100,000 (154,888) Net change in fund balances (28,014) (805,439) 1,219,647 32,630 (114,277) Fund balance - Beginning of year 50,017 814,473 4,077,896 5,302 1,119,006 Fund balance - End of year $ 22,004 $ 9,035 $ 5,297,543 $ 37,932 $ 1,004,729 Totals may not add due to rounding 115 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 Totals may not add due to rounding 116 Transient Foreclosed Victims' County Clerk Room Tax -1% Land Sales Assistance Law Library Records REVENUES Local Taxes - property $ - $ - $ - $ $ - Taxes - other 801,060 - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - Investment earnings 4,657 42 700 3,402 2,139 Rents - - - - - Charges for services - 53,500 32,891 115,158 Contributions and donations - - - - Intergovernmental Local - - - - State - 76,485 152,671 Federal - - 126,834 - - Total revenues 805,717 53,542 236,910 156,073 117,297 EXPENDITURES Current: General government 526,943 41,357 - 161,915 122,624 Public safety - - 554,631 - - County roads - - - - - Health and welfare - - - - - Education - - - - - Capital outlay - - - - - Total expenditures 526,943 41,357 554,631 161,915 122,624 Excess (deficiency) of revenues over expenditures 278,774 12,185 (317,722) (5,843) (5,327) OTHER FINANCING SOURCES (USES) Transfers in - - 295,648 Transfers out (224,703) - Total other financing sources (uses) (224,703) - 295,648 Net change in fund balances 54,071 12,185 (22,074) (5,843) (5,327) Fund balance - Beginning of year 500,661 (340) 124,347 438,053 327,240 Fund balance - End of year $ 554,732 $ 11,845 $ 102,273 $ 432,210 $ 321,912 Totals may not add due to rounding 116 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 Totals may not add due to rounding 117 Natural Federal Public Land GIS Resource Forest Title Corner Dedicated Protection III Surveyor Preservation REVENUES Local Taxes - property $ - $ - $ - $ - $ - Taxes - other - - - - - Licenses and permits - - - 130,245 - Fines, forfeitures and penalties - - - - - Investment earnings 1,610 5,268 2,332 1,992 7,257 Rents - - - - - Charges for services 313,453 - - 44,020 453,307 Contributions and donations - - - - - Intergovernmental Local - - - - - State 11,581 - - - Federal - 666,210 - - - Total revenues 326,644 671,478 2,332 176,257 460,564 EXPENDITURES Current: General government 325,089 - - - - Public safety - - - - - County roads - 585,508 60,798 142,633 367,301 Health and welfare - - - - - Education - - - - - Capital outlay - - - - - Total expenditures 325,089 585,508 60,798 142,633 367,301 Excess (deficiency) of revenues over expenditures 1,554 85,970 (58,466) 33,624 93,263 OTHER FINANCING SOURCES (USES) Transfers in - 25,883 - - - Transfers out - - - - - Total other financing sources (uses) - 25,883 - - - Net change in fund balances 1,554 111,853 (58,466) 33,624 93,263 Fund balance - Beginning of year 181,783 502,530 328,632 131,241 583,588 Fund balance - End of year $ 183,337 $ 614,383 $ 270,166 $ 164,866 $ 676,851 Totals may not add due to rounding 117 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 Totals may not add due to rounding 118 Countywide Deschutes County Total Nonmajor Transportation Adult Parole Extension Special SDC Imp Dog Control & Probation & 4-H Revenue Funds REVENUES Local Taxes - property $ - $ - $ - $ 472,249 $ 472,249 Taxes - other - - - - 6,408,477 Licenses and permits 1,192,554 268,369 - - 1,607,199 Fines, forfeitures and penalties - 3,855 343,001 - 1,031,667 Investment earnings 18,543 1,331 21,418 6,096 175,394 Rents - - - - 18,250 Charges for services - 464 57,214 64,701 7,951,038 Contributions and donations - 4,299 - - 4,299 Intergovernmental Local - - 96,736 - 186,913 State - - 4,893,467 - 7,037,658 Federal - - - - 877,278 Total revenues 1,211,097 278,318 5,411,837 543,045 25,770,420 EXPENDITURES Current: General government - - - 429,263 11,240,302 Public safety - - 5,623,023 - 6,343,189 County roads - - - - 1,156,240 Health and welfare - 444,273 - - 1,150,793 Education - - - - 263,106 Capital outlay - - - 9,161 9,161 Total expenditures - 444,273 5,623,023 438,424 20,162,792 Excess (deficiency) of revenues over expenditures 1,211,097 (165,954) (211,187) 104,621 5,607,629 OTHER FINANCING SOURCES (USES) Transfers in - 73,718 451,189 - 971,438 Transfers out (549,800) - (22,000) - (5,076,091) Total other financing sources (uses) (549,800) 73,718 429,189 - (4,104,653) Net change in fund balances 661,297 (92,236) 218,002 104,621 1,502,976 Fund balance - Beginning of year 1,638,703 193,569 1,469,775 569,768 14,690,395 Fund balance - End of year $ 2,300,000 $ 101,333 $ 1,687,778 $ 674,390 $ 16,193,371 Totals may not add due to rounding 118 Deschutes County, Oregon Deschutes County Extension 4-H County Service District Operating Fund and Sub Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 Operating Reserve Fund Fund Total REVENUES Local Taxes - property Investment earnings Charges for services Total revenues EXPENDITURES Current: General services Capital outlay Total expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding 119 $ 472,249 $ - $ 472,249 2,545 3,551 6,096 64,701 - 64,701 539,494 3,551 543,045 429,263 - 429,263 9,161 9,161 429,263 9,161 438,424 - 75,000 75,000 (75,000) - (75,000) (75,000) 75,000 - 35,231 69,390 104,621 106,413 463,355 569,768 $ 141,644 $ 532,746 $ 674,390 Deschutes County, Oregon Justice Court Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties $ 520,000 $ 520,000 $ 545,628 $ 25,628 Investment earnings - - 965 965 Total revenues 520,000 520,000 546,593 26,593 EXPENDITURES Current - departmental: Justice Court 633,991 645,991 621,236 24,755 Total expenditures 633,991 645,991 621,236 24,755 Operating contingency 56,617 44,617 - 44,617 Total expenditures 690,608 690,608 621,236 69,372 Excess (deficiency) of revenues over expenditures (170,608) (170,608) (74,643) 95,965 OTHER FINANCING SOURCES (USES) Transfers in 25,000 25,000 25,000 - Net change in fund balance (145,608) (145,608) (49,643) 95,965 Fund balance - Beginning of year 145,608 145,608 162,085 16,477 Fund balance - End of year $ - $ - 112,442 $ 112,442 Unrealized gain (loss) on investments (207) Total fund balance, GAAP basis - End of Year $ 112,235 Totals may not add due to rounding 120 Deschutes County, Oregon Industrial Lands Proceeds Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Investment earnings Total revenues EXPENDITURES Current - departmental: Economic development Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget $ 1,000 $ 1,000 1,000 1,000 Actual Variance with Final Budget 226 $ (774) 226 (774) 47,000 47,000 46,225 775 47,000 47,000 46,225 775 (46,000) (46,000) (45,999) 1 46,000 46,000 45,999 (1) - - - e - Totals may not add due to rounding 121 Deschutes County, Oregon Park Acquisition and Development Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 122 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 800 $ 800 $ 1,577 $ 777 Intergovernmental State 245,000 245,000 307,871 62,871 Total revenues 245,800 245,800 309,448 63,648 EXPENDITURES Current - departmental: Development 182,800 182,800 31,249 151,551 Total expenditures 182,800 182,800 31,249 151,551 Excess (deficiency) of revenues over expenditures 63,000 63,000 278,199 215,199 OTHER FINANCING SOURCES (USES) Transfer out (190,000) (190,000) (190,000) - Net change in fund balance (127,000) (127,000) 88,199 215,199 Fund balance - Beginning of year 127,000 127,000 144,817 17,817 Fund balance - End of year $ - $ - 233,017 $ 233,017 Unrealized gain (loss) on investments (355) Total fund balance, GAAP basis - End of Year $ 232,662 Totals may not add due to rounding 122 Deschutes County, Oregon Park Development Fees Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Licenses and permits $ 2,000 $ 2,000 $ 16,031 $ 14,031 Investment earnings 800 800 925 125 Total revenues 2,800 2,800 16,956 14,156 EXPENDITURES Current - departmental: Development 94,800 94,800 1,422 93,378 Total expenditures 94,800 94,800 1,422 93,378 Net change in fund balance (92,000) (92,000) 15,534 107,534 Fund balance - Beginning of year 92,000 92,000 91,871 (129) Fund balance - End of year $ - $ - 107,406 $ 107,406 Unrealized gain (loss) on investments (194) Total fund balance, GAAP basis - End of Year $ 107,212 Totals may not add due to rounding 123 Deschutes County, Oregon County School Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Intergovernmental State Total revenues EXPENDITURES Current - departmental: Education Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year $ 110 $ 110 $ 188 $ 78 267,300 267,300 262,919 (4,381) 267,410 267,410 263,106 (4,304) 267,410 267,410 263,106 4,304 267,410 267,410 263,106 4,304 Totals may not add due to rounding 124 Deschutes County, Oregon Special Transportation Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 125 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 2,000 $ 2,000 $ 1,705 $ (295) Intergovernmental State 1,000,000 1,000,000 632,398 (367,602) Federal 43,684 43,684 43,687 3 Total revenues 1,045,684 1,045,684 677,790 (367,894) EXPENDITURES Current - departmental: Health and Welfare 1,095,684 1,095,684 706,520 389,164 Total expenditures 1,095,684 1,095,684 706,520 389,164 Net change in fund balance (50,000) (50,000) (28,730) 21,270 Fund balance - Beginning of year 50,000 50,000 35,760 (14,240) Fund balance - End of year $ - $ - 7,030 $ 7,030 Unrealized gain (loss) on investments (247) Total fund balance, GAAP basis - End of Year $ 6,784 Totals may not add due to rounding 125 Deschutes County, Oregon Taylor Grazing Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Intergovernmental State Total revenues EXPENDITURES Current - departmental: Development Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year $ 200 $ 200 $ 353 $ 153 5,000 5,000 5,927 927 5,200 5,200 6,281 1,081 39,830 39,830 - 39,830 39,830 39,830 - 39,830 (34,630) (34,630) 6,281 40,911 34,630 34,630 35,405 775 $ - $ - 41,685 $ 41,685 (75) $ 41,610 Totals may not add due to rounding 126 Deschutes County, Oregon Transient Room Tax Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Taxes - other Investment earnings Total revenues EXPENDITURES Current - departmental: Economic development Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfer out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 5,425,000 $ 5,425,000 $ 5,607,417 $ 182,417 3,000 3,000 8,980 5,980 5,428,000 5,428,000 5,616,396 188,396 1,996,420 1,996,420 1,855,995 140,425 1,996,420 1,996,420 1,855,995 140,425 3,431,580 3,431,580 3,760,402 328,822 (3,666,580) (3,666,580) (3,666,580) - (3,666,580) (3,666,580) (3,666,580) - (235,000) (235,000) 93,822 328,822 235,000 235,000 975,198 740,198 $ - $ - 1,069,019 $ 1,069,019 Totals may not add due to rounding 127 (1,002) $ 1,068,017 Deschutes County, Oregon Video Lottery Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 128 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 1,000 $ 1,000 $ 2,538 $ 1,538 Intergovernmental State 682,000 682,000 693,636 11,636 Total revenues 683,000 683,000 696,174 13,174 EXPENDITURES Current - departmental: Economic development 823,000 823,000 681,265 141,735 Total expenditures 823,000 823,000 681,265 141,735 Net change in fund balance (140,000) (140,000) 14,909 154,909 Fund balance - Beginning of year 140,000 140,000 143,014 3,014 Fund balance - End of year $ - $ - 157,923 $ 157,923 Unrealized gain (loss) on investments (390) Total fund balance, GAAP basis - End of Year $ 157,533 Totals may not add due to rounding 128 Deschutes County, Oregon Transient Room Tax - I% Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Taxes - other Investment earnings Total revenues EXPENDITURES Current - departmental: Economic development Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfer out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 775,000 $ 775,000 $ 801,060 $ 26,060 - - 5,501 5,501 775,000 775,000 806,561 31,561 795,297 795,297 526,943 268,354 795,297 795,297 526,943 268,354 (20,297) (20,297) 279,618 299,915 (224,703) (224,703) (224,703) - (224,703) (224,703) (224,703) - (245,000) (245,000) 54,915 299,915 245,000 245,000 500,661 255,661 $ - $ - 555,576 $ 555,576 Totals may not add due to rounding 129 (844) $ 554,732 Deschutes County, Oregon Foreclosed Land Sales Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 130 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 500 $ 500 $ 63 $ (437) Other - - 53,500 53,500 Total revenues 500 500 53,563 53,063 EXPENDITURES Current - departmental: General services 53,308 53,308 41,357 11,951 Total expenditures 53,308 53,308 41,357 11,951 Operating contingency 7,192 7,192 - 7,192 Total expenditures 60,500 60,500 41,357 19,143 Net change in fund balance (60,000) (60,000) 12,207 72,207 Fund balance - Beginning of year 60,000 60,000 (340) (60,340) Fund balance - End of year $ - $ - 11,866 $ 11,866 Unrealized gain (loss) on investments (22) Total fund balance, GAAP basis - End of Year $ 11,845 Totals may not add due to rounding 130 Deschutes County, Oregon Victims' Assistance Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Charges for services Investment earnings Intergovernmental State Federal Total revenues EXPENDITURES Current - departmental: Judicial Total expenditures Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 32,000 $ 32,000 $ 32,891 $ 891 - - 869 869 101,980 101,980 76,485 (25,495) 189,892 189,892 126,834 (63,058) 323,872 323,872 237,079 (86,793) 584,633 584,633 554,631 30,002 584,633 584,633 554,631 30,002 94,887 94,887 - 94,887 679,520 679,520 554,631 124,889 (355,648) (355,648) (317,553) 38,095 295,648 295,648 295,648 - (60,000) (60,000) (21,905) 38,095 60,000 60,000 124,347 64,347 $ - $ - 102,442 $ 102,442 Totals may not add due to rounding 131 (169) $ 102,273 Deschutes County, Oregon Law Library Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 132 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 4,320 $ 4,320 $ 4,184 $ (136) Intergovernmental State 152,671 152,671 152,671 - Total revenues 156,991 156,991 156,855 (136) EXPENDITURES Current - departmental: Library services 266,277 266,277 161,915 104,362 Total expenditures 266,277 266,277 161,915 104,362 Operating contingecy 322,714 322,714 - 322,714 Total expenditures 588,991 588,991 161,915 427,076 Net change in fund balance (432,000) (432,000) (5,060) 426,940 Fund balance - Beginning of year 432,000 432,000 438,053 6,053 Fund balance - End of year $ - $ - 432,993 $ 432,993 Unrealized gain (loss) on investments (782) Total fund balance, GAAP basis - End of Year $ 432,210 Totals may not add due to rounding 132 Deschutes County, Oregon County Clerk Records Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Investment earnings Charges for services Total revenues EXPENDITURES Current - departmental: Clerk records Total expenditures Operating contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 2,580 $ 2,580 $ 2,724 $ 144 114,000 114,000 115,158 1,158 116,580 116,580 117,881 1,301 141,270 141,270 122,624 18,646 141,270 141,270 122,624 18,646 300,960 300,960 300,960 442,230 442,230 122,624 319,606 (325,650) (325,650) (4,743) 320,907 325,650 325,650 327,240 1,590 $ - $ - 322,497 $ 322,497 Totals may not add due to rounding 133 (585) $ 321,912 Deschutes County, Oregon Court Facilities Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties Investment earnings Total revenues EXPENDITURES Current - departmental: Court safety Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year $ 165,235 $ 165,235 $ 137,048 $ (28,187) 300 300 496 196 165,535 165,535 137,544 (27,991) 165,535 165,535 165,535 - 165,535 165,535 165,535 - - - (27,991) (27,991) - - 50,017 50,017 $ - $ - 22,026 $ 22,026 (23) $ 22,004 Totals may not add due to rounding 134 Deschutes County, Oregon Deschutes County Communication System Reserve Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 6,000 $ 6,000 $ 5,108 $ (892) Total revenues 6,000 6,000 5,108 (892) EXPENDITURES Current - departmental: Communications 818,342 818,342 810,530 7,812 Total expenditures 818,342 818,342 810,530 7,812 Net change in fund balance (812,342) (812,342) (805,422) 6,920 Fund balance - Beginning of year 812,342 812,342 814,473 2,131 Fund balance - End of year $ - $ - 9,051 $ 9,051 Unrealized gain (loss) on investments (16) Total fund balance, GAAP basis - End of Year $ 9,035 Totals may not add due to rounding 135 Deschutes County, Oregon Community Development Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Fines, forfeitures and penalties Investment earnings Rents Charges for services Intergovernmental Local State Federal Total revenues EXPENDITURES Current - departmental: Community development Total expenditures Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 1,200 $ 1,200 $ 2,135 $ 935 23,345 23,345 47,256 23,911 12,000 12,000 18,250 6,250 6,230,375 6,230,375 6,816,330 585,955 514,076 514,076 90,177 (423,899) 16,500 16,500 703 (15,797) 50,000 50,000 40,547 (9,453) 6,847,496 6,847,496 7,015,398 167,902 5,868,449 6,236,023 5,517,688 718,335 5,868,449 6,236,023 5,517,688 718,335 908,788 541,214 541,214 6,777,237 6,777,237 5,517,688 1,259,549 70,259 70,259 1,497,710 1,427,451 OTHER FINANCING SOURCES (USES) Transfers in 1,375,000 1,375,000 1,375,000 Transfers out (1,643,120) (1,643,120) (1,643,120) Total other financing sources (uses) (268,120) (268,120) (268,120) Net change in fund balance (197,861) (197,861) 1,229,590 1,427,451 Fund balance - Beginning of year 3,308,670 3,308,670 4,077,896 769,226 Fund balance - End of year $ 3,110,809 $ 3,110,809 5,307,486 $ 2,196,677 Unrealized gain (loss) on investments (9,943) Total fund balance, GAAP basis - End of Year $ 5,297,543 Totals may not add due to rounding 136 Deschutes County, Oregon CDD Groundwater Partnership Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 50 $ 50 $ 198 $ 148 Total revenues 50 50 198 148 EXPENDITURES Current - departmental: Groundwater 9,050 109,050 67,500 41,550 Total 9,050 109,050 67,500 41,550 Contingency - - - - Total expenditures 9,050 109,050 67,500 41,550 Excess (deficiency) of revenues over expenditures (9,000) (109,000) (67,302) (41,698) OTHER FINANCING SOURCES (USES) Appropriation transfer - 100,000 - (100,000) Transfers in - - 100,000 100,000 Total other financing sources (uses) - 100,000 100,000 - Net change in fund balance (9,000) (9,000) 32,698 41,698 Fund balance - Beginning of year 9,000 9,000 5,302 (3,698) Fund balance - End of year $ - $ - 38,001 $ 38,001 Unrealized gain (loss) on investments (69) Total fund balance, GAAP basis - End of Year $ 37,932 Totals may not add due to rounding 137 Deschutes County, Oregon Newberry Neighborhood Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Investment earnings Total revenues EXPENDITURES Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 1,200 $ 1,200 $ 40,768 $ 39,568 1,200 1,200 40,768 39,568 154,266 54,266 154,266 54,266 (153,066) (53,066) 40,768 OTHER FINANCING SOURCES (USES) Transfers out (54,888) (154,888) (154,888) Total other financing sources (uses) (54,888) (154,888) (154,888) Net change in fund balance (207,954) (207,954) (114,120) 54,266 54,266 93,834 93,834 Fund balance - Beginning of year 207,954 207,954 1,119,006 911,052 Fund balance - End of year $ - $ - 1,004,886 $ 1,004,886 Unrealized gain (loss) on investments (157) Total fund balance, GAAP basis - End of Year $ 1,004,729 Totals may not add due to rounding 138 Deschutes County, Oregon GIS Dedicated Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 139 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 250 $ 250 $ 1,942 $ 1,692 Charges for services 248,500 248,500 313,453 64,953 Intergovernmental State 11,400 11,400 11,581 181 Total revenues 260,150 260,150 326,976 66,826 EXPENDITURES General services 349,198 349,198 325,089 24,109 Total 349,198 349,198 325,089 24,109 Operating contingency 27,841 27,841 - 27,841 Total expenditures 377,039 377,039 325,089 51,950 Net change in fund balance (116,889) (116,889) 1,887 118,776 Fund balance - Beginning of year 116,889 116,889 181,783 64,894 Fund balance - End of year $ - $ - 183,670 $ 183,670 Unrealized gain (loss) on investments (332) Total fund balance, GAAP basis - End of Year $ 183,337 Totals may not add due to rounding 139 Deschutes County, Oregon Natural Resource Protection Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 140 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 4,000 $ 4,000 $ 6,289 $ 2,289 Intergovernmental Local 1,500 1,500 - (1,500) Federal 1,094,332 1,094,332 666,210 (428,122) Total revenues 1,099,832 1,099,832 672,499 (427,333) EXPENDITURES General services 1,087,460 1,087,460 585,508 501,952 Total 1,087,460 1,087,460 585,508 501,952 Operating contingency 574,779 574,779 - 574,779 Total expenditures 1,662,239 1,662,239 585,508 1,076,731 Excess (deficiency) of revenues over expenditures (562,407) (562,407) 86,991 649,398 OTHER FINANCING SOURCES (USES) Transfers in 35,000 35,000 25,883 (9,117) Net change in fund balance (527,407) (527,407) 112,874 640,281 Fund balance - Beginning of year 527,407 527,407 502,530 (24,877) Fund balance - End of year $ - $ - 615,404 $ 615,405 Unrealized gain (loss) on investments (1,021) Total fund balance, GAAP basis - End of Year $ 614,383 Totals may not add due to rounding 140 Deschutes County, Oregon Federal Forest Title III Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Investment earnings Total revenues EXPENDITURES General services Total Operating contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 1,600 $ 1,600 $ 2,830 $ 1,230 1,600 1,600 2,830 1,230 120,000 120,000 60,798 59,202 120,000 120,000 60,798 59,202 196,538 196,538 - 196,538 316,538 316,538 60,798 255,740 (314,938) (314,938) (57,968) 256,970 314,938 314,938 328,632 13,694 $ - $ - 270,664 $ 270,664 Totals may not add due to rounding 141 (498) $ 270,166 Deschutes County, Oregon Surveyor Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Licenses and permits Investment earnings Charges for services Total revenues EXPENDITURES General services Total Operating contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 115,525 $ 115,525 $ 130,245 $ 14,720 1,548 1,548 2,291 743 44,292 44,292 44,020 (272) 161,365 161,365 176,556 15,191 160,574 160,574 142,633 17,941 160,574 160,574 142,633 17,941 161,116 161,116 - 161,116 321,690 321,690 142,633 179,057 (160,325) (160,325) 33,923 194,248 160,325 160,325 131,241 (29,083) $ - $ - 165,164 $ 165,164 Totals may not add due to rounding 142 (298) $ 164,866 Deschutes County, Oregon Public Land Corner Preservation Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Charges for services Total revenues EXPENDITURES General services Total Operating contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year $ 4,564 $ 4,564 $ 8,482 $ 3,918 477,214 477,214 453,307 (23,907) 481,778 481,778 461,789 (19,989) 413,501 413,501 367,301 46,200 413,501 413,501 367,301 46,200 641,381 641,381 - 641,381 1,054,882 1,054,882 367,301 687,581 (573,104) (573,104) 94,489 667,593 573,104 573,104 583,588 10,484 $ - $ - 678,076 $ 678,076 (1,225) $ 676,851 Totals may not add due to rounding 143 Deschutes County, Oregon Countywide Transportation SDC Improvement Fee Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Licenses and permits Investment earnings Total revenues EXPENDITURES Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfer out Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 750,000 $ 750,000 $ 1,192,554 $ 442,554 10,667 10,667 22,707 12,040 760,667 760,667 1,215,261 454,594 1,194,426 1,194,426 1,194,426 1,194,426 (433,759) (433,759) 1,215,261 1,194,426 1,194,426 1,649,020 (986,000) (986,000) (549,800) 436,200 (1,419,759) (1,419,759) 665,461 2,085,220 1,419,759 1,419,759 1,638,703 218,945 $ - $ - 2,304,164 $ 2,304,164 Totals may not add due to rounding 144 (4,164) $ 2,300,000 Deschutes County, Oregon Dog Control Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Total revenues EXPENDITURES Animal control Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 308,000 $ 308,000 $ 268,369 $ (39,631) 1,600 1,600 3,855 2,255 2,500 2,500 1,668 (832) 350 350 464 114 3,500 3,500 4,299 799 315,950 315,950 278,655 (37,295) 526,481 526,481 444,273 82,208 526,481 526,481 444,273 82,208 53,187 53,187 - 53,187 579,668 579,668 444,273 135,395 (263,718) (263,718) (165,618) 98,100 73,718 73,718 73,718 - (190,000) (190,000) (91,900) 98,100 190,000 190,000 193,569 3,569 $ - S - 101,669 $ 101,669 Totals may not add due to rounding 145 (336) $ 101,333 Deschutes County, Oregon Adult Parole and Probation Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Fines, forfeitures and penalties Investment earnings Charges for services Intergovernmental Local State Total revenues EXPENDITURES Parole & Probation Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 410,000 $ 410,000 $ 343,001 $ (66,999) 7,000 7,000 24,584 17,584 56,500 56,500 57,214 714 96,736 96,736 96,736 - 4,881,061 4,881,061 4,893,467 12,406 5,451,297 5,451,297 5,415,002 (36,295) Unrealized gain (loss) on investments (3,166) 6,139,720 6,139,720 5,623,023 516,697 6,139,720 6,139,720 5,623,023 516,697 902,766 902,766 - 902,766 7,042,486 7,042,486 5,623,023 1,419,463 (1,591,189) (1,591,189) (208,021) 1,383,168 Transfers in 451,189 451,189 451,189 - Transfers out (22,000) (22,000) (22,000) - Total other financing sources (uses) 429,189 429,189 429,189 - Net change in fund balance (1,162,000) (1,162,000) 221,168 1,383,168 Fund balance - Beginning of year 1,162,000 1,162,000 1,469,775 307,775 Fund balance - End of year $ - $ - 1,690,943 $ 1,690,943 Unrealized gain (loss) on investments (3,166) Total fund balance, GAAP basis - End of Year $ 1,687,778 Totals may not add due to rounding 146 Deschutes County, Oregon Extension and 4-H Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Totals may not add due to rounding 147 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Taxes - property $ 471,595 $ 471,595 $ 472,249 $ 654 Investment earnings 1,450 1,450 3,031 1,581 Rents 1,000 1,000 - (1,000) Charges for services 2,200 2,200 64,701 62,501 Total revenues 476,245 476,245 539,980 63,735 EXPENDITURES General services 452,023 452,023 429,263 22,760 Total 452,023 452,023 429,263 22,760 Operating contingency 99,222 99,222 - 99,222 Total expenditures 551,245 551,245 429,263 121,982 Excess (deficiency) of revenues over expenditures (75,000) (75,000) 110,717 185,717 OTHER FINANCING SOURCES (USES) Transfers out (75,000) (75,000) (75,000) - Total other financing sources (uses) (75,000) (75,000) (75,000) - Net change in fund balance (150,000) (150,000) 35,717 185,717 Fund balance - Beginning of year 150,000 150,000 106,413 (43,587) Fund balance - End of year $ - $ - 142,130 $ 142,130 Unrealized gain (loss) on investments (486) Deschutes County Extension and 4-H District Construction Fund 532,746 Total fund balance, GAAP basis - End of Year $ 674,390 Totals may not add due to rounding 147 Deschutes County, Oregon Extension and 4-H Reserve (Sub -Fund of Extension and 4-H) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 REVENUES Local Investment earnings Total revenues EXPENDITURES Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 3,000 $ 3,000 $ 4,516 $ 1,516 3,000 3,000 4,516 1,516 538,000 538,000 9,161 528,839 538,000 538,000 9,161 528,839 (535,000) (535,000) (4,645) 530,355 75,000 75,000 75,000 - 75,000 75,000 75,000 - (460,000) (460,000) 70,355 530,355 460,000 460,000 463,355 3,355 $ - $ - 533,710 $ 533,710 Totals may not add due to rounding 148 (964) $ 532,746 EXPENDITURES Debt administration Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year 2,500 2,500 2,500 (2,255,176) (2,255,176) (2,247,028) 2,333,511 Deschutes County, Oregon 2,333,510 2,333,511 2,333,511 Nonmajor Debt Service Fund 78,335 78,335 Deschutes County Full Faith and Credit Debt Service Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 5,000 $ 5,000 $ 10,162 $ 5,162 Rents 1,227,530 1,227,530 1,226,216 (1,314) Charges for services 1,162,216 1,162,216 1,166,512 4,296 Intergovernmental Local 398,833 398,833 398,833 - Total revenues 2,793,579 2,793,579 2,801,723 8,145 EXPENDITURES Debt administration Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year 2,500 2,500 2,500 (2,255,176) (2,255,176) (2,247,028) 2,333,511 2,333,511 2,333,510 2,333,511 2,333,511 2,333,510 78,335 78,335 86,482 $ 555,835 $ 555,835 559,042 (936) $ 558,106 Totals may not add due to rounding 149 8,147 (4,939) $ 3,207 Deschutes County, Oregon Nonmajor Capital Project Fund Road Capital Improvement Plan Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2017 Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Total revenues EXPENDITURES Current: County roads Contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year $ 31,500 $ 31,500 $ 79,157 $ 47,657 31,500 31,500 79,157 47,657 3,722,261 3,722,261 872,662 2,849,599 5,362,882 5,362,882 - 5,362,882 9,085,143 9,085,143 872,662 8,212,481 (9,053,643) (9,053,643) (793,505) 8,260,138 9,053,643 9,053,643 8,617,443 (436,200) 9,053,643 9,053,643 8,617,443 (436,200) - - 7,823,938 7,823,938 Totals may not add due to rounding 150 7,823,938 $ 7,823,938 (14,253) Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds As of and for the Year Ended June 30, 2017 Deschutes County, Oregon Deschutes County, Oregon Fiduciary Funds Statement of Changes in Assets and Liabilities - Agency Funds - Detail Activity Year Ended June 30, 2017 Liabilities Accounts payable Balance $ 14,810,752 $ 17,913,949 Balance Due to other entities July 1, 2016 Additions Deductions June 30, 2017 Amounts Held for Others 1,104,407 350,728,449 349,055,562 2,777,294 Assets 9,499,716 1,787,930 6,373,925 4,913,721 Cash, cash equivalents and investments, $ 14,631,005 $ 367,327,132 $ 373,343,436 $ 8,614,701 at fair value; plus accrued interest $ 14,261,480 $ 362,232,568 $ 368,433,152 $ 8,060,896 Accounts receivable 369,525 326,830 142,551 553,805 $ 14,631,005 $ 362,559,398 $ 368,575,702 $ 8,614,701 Liabilities Accounts payable $ 4,026,883 $ 14,810,752 $ 17,913,949 $ 923,686 Due to other entities Governmental 1,104,407 350,728,449 349,055,562 2,777,294 Others 9,499,716 1,787,930 6,373,925 4,913,721 $ 14,631,005 $ 367,327,132 $ 373,343,436 $ 8,614,701 Totals may not add due to rounding 151 Combining Funds and Individual Funds Statements and Schedules — Proprietary Funds — Enterprise Funds As of and for the Year Ended June 30, 2017 Deschutes County, Oregon This page left intentionally blank. Deschutes County, Oregon Fair and Expo Center Enterprise Operations Fund and Sub -Fund Combining Schedule of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Personnel Materials and services Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grants Property taxes Investment earnings Interest expense Net nonoperating revenues (expenses) Income (loss) before transfers OTHER FINANCING SOURCES (USES) Transfers in Net other financing sources (uses) Change in net position Net position - beginning of year Net position - End of year Totals may not add due to rounding 152 Fairgrounds Fair & Expo G.O. Bonds Center Debt Service Total $ 2,710,373 $ - $ 2,710,373 2,710,373 - 2,710,373 1,381,845 - 1,381,845 2,043,277 - 2,043,277 697,927 - 697,927 4,123,049 - 4,123,049 (1,412,676) - (1,412,676) 532,166 - 532,166 - 2,368,281 2,368,281 5,732 1,414 7,146 (18,421) (32,438) (50,858) 519,478 2,337,257 2,856,735 (893,198) 2,337,257 1,444,059 530,447 530,447 530,447 - 530,447 (362,751) 2,337,257 1,974,506 18,728,906 (2,337,257) 16,391,649 $ 18,366,155 $ - $ 18,366,155 Deschutes County, Oregon Fair and Expo Center Enterprise Operations Fund and Sub -Fund Combining Schedule of Cash Flows Year Ended June 30, 2017 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to employees Payments to suppliers Net cash used by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes Grants Transfers in Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Sale of capital assets Principal paid on capital debt Interest paid on capital debt Net cash used by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments Interest Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances - Beginning of year Balances - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense Change in assets and liabilities Receivables Prepaid expenses Inventory Defined benefit pension accounts Accounts payable Unearned revenues Compensated leave OPEB obligation Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments Totals may not add due to rounding 153 Fairgrounds Fair & Expo G.O. Bonds Center Debt Service Total $ 2,726,289 (1,209,840) (2,035,505) (519,056) $ 2,726,289 (1,209, 840) (2,035,505) (519,056) - 2,441,081 2,441,081 529,466 - 529,466 530,447 - 530,447 1,059,913 2,441,081 3,500,994 (96,247) - (96,247) 2,700 - 2,700 (83,788) (2,595,000) (2,678,788) (18,748) (38,925) (57,673) (196,083) (2,633,925) (2,830,008) (307,387) 147,543 (159,845) 7,697 2,362 10,060 (299,690) 149,905 (149,785) 45,084 (42,939) 2,145 142,197 42,939 185,136 $ 187,281 $ - $ 187,281 $ (1,412,676) $ - $ (1,412,676) 697,927 - 697,927 5,581 - 5,581 (40,641) - (40,641) (1,012) - (1,012) 116,849 - 116,849 45,971 - 45,971 10,335 - 10,335 15,554 - 15,554 43,057 - 43,057 $ (519,056) $ - $ (519,056) $ (3,151) $ (451) $ (3,601) Deschutes County, Oregon Solid Waste Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Rents Other Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Debt service Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings OTHER FINANCING SOURCES Transfers in Transfers out Change in fund balance Fund balance - Beginning of year Fund balance, budget basis - End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows - pension Interest payable Compensated leave Net OPEB obligation Net pension liability Bonds (net of unamortized premiums/discounts) Accrued landfill closure and postclosure costs Deferred inflows - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 8,890,096 $ 8,890,096 $ 9,727,130 $ 837,034 10,801 10,801 12,801 2,000 15,000 15,000 47,242 32,242 8,915,897 8,915,897 9,787,173 871,276 8,521,136 8,521,136 7,888,777 632,359 930,944 930,944 858,512 72,432 5,667,284 5,667,284 - 5,667,284 15,119,364 15,119,364 8,747,289 6,372,075 (6,203,467) (6,203,467) 1,039,884 7,243,351 62,500 62,500 80,836 18,336 1,375,000 1,375,000 1,375,000 - (1,375,000) (1,375,000) (1,375,000) - (6,140,967) (6,140,967) 1,120,720 7,261,687 6,921,589 6,921,589 7,992,489 1,070,900 $ 780,622 $ 780,622 9,113,209 $ 8,332,587 Totals may not add due to rounding 154 (16,163) 25,075,849 210,229 901,622 (17,226) (227,555) (525,096) (1,760,410) (9,219,522) (11,498,736) (59,753) $ 11,976,447 Deschutes County, Oregon Fair and Expo Center Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Operating grants Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Debt service Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings OTHER FINANCING SOURCES Appropriation transfer Transfers in Transfers out Change in fund balance Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 2,491,900 $ 2,491,900 $ 2,738,287 $ 246,387 783,266 783,266 532,166 (251,100) 3,275,166 3,275,166 3,270,453 (4,713) 3,614,700 3,614,700 3,366,835 247,865 108,488 108,488 102,536 5,952 36,399 36,399 - 36,399 3,759,587 3,759,587 3,469,371 290,216 (484,421) (484,421) (198,918) 285,503 4,400 4,400 7,460 3,060 - 137,186 - (137,186) 888,261 888,261 1,025,447 137,186 (357,814) (495,000) (495,000) - 50,426 50,426 338,989 288,563 Fund balance - Beginning of year 454,277 454,277 528,854 74,577 Fund balance, budget basis - End of year $ 504,703 $ 504,703 867,844 $ 363,141 Unrealized gain (loss) on investments Prepaid expenses Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows - pension Interest Payable Unearned revenues Accrued Compensated Leave Other Postemployement Benefits Net Pension Liability Bonds (net of unamortized premiums/discounts) Deferred inflows - pension Net position, GAAP basis - End of year Totals may not add due to rounding 155 (1,728) 182,064 19,582,357 4,439 610,960 (1,461) (273,770) (178,910) (280,051) (1,192,896) (912,201) (40,490) $ 18,366,155 Deschutes County, Oregon Fairgrounds General Obligation Bonds Debt Service Fund (Sub -Fund of Fair and Expo Center) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 EXPENDITURES Not allocated to organizational units: Debt service Total expenditures Operations, net NONOPERATING REVENUES Property taxes Investment earnings Budgeted Amounts Original Budget Final Budget Actual $ 2,633,925 $ 2,633,925 $ 2,633,925 $ 2,633,925 2,633,925 2,633,925 (2,633,925) (2,633,925) (2,633,925) 2,459,625 2,459,625 2,433,844 1,300 1,300 1,414 Variance with Final Budget (25,781) 114 Change in fund balance (173,000) (173,000) (198,667) (25,667) Fund balance - Beginning of year 173,000 173,000 198,667 25,667 Fund balance, budget basis - End of year $ - $ - $ - $ - Totals may not add due to rounding 156 Deschutes County, Oregon RV Park Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 NONOPERATING REVENUES Investment earnings 1,200 1,200 2,839 1,639 Other financing sources Transfers in 160,000 160,000 160,000 - Change in fund balance (182,620) (182,620) 117,405 300,025 Fund balance - Beginning of year 182,620 182,620 174,641 (7,979) Fund balance, budget basis - End of year $ - $ - 292,046 $ 292,046 Unrealized gain (loss) on investments (564) Capital assets (net of accumulated depreciation) 2,462,468 Interest payable (2,748) Bonds (net of unamortized premiums/discounts) (1,739,518) Net position, GAAP basis, end of year $ 1,011,685 Totals may not add due to rounding 157 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget OPERATING REVENUES Charges for services $ 403,500 $ 403,500 $ 384,279 $ (19,221) Operating grants 40,000 40,000 37,871 (2,129) Total operating revenues 443,500 443,500 422,150 (21,350) EXPENDITURES Current - departmental County services 302,357 302,357 244,848 57,509 Not allocated to organizational units: Debt service 230,367 230,367 222,736 7,631 Contingency 254,596 254,596 - 254,596 Total expenditures 787,320 787,320 467,584 319,736 Operations, net (343,820) (343,820) (45,434) 298,386 NONOPERATING REVENUES Investment earnings 1,200 1,200 2,839 1,639 Other financing sources Transfers in 160,000 160,000 160,000 - Change in fund balance (182,620) (182,620) 117,405 300,025 Fund balance - Beginning of year 182,620 182,620 174,641 (7,979) Fund balance, budget basis - End of year $ - $ - 292,046 $ 292,046 Unrealized gain (loss) on investments (564) Capital assets (net of accumulated depreciation) 2,462,468 Interest payable (2,748) Bonds (net of unamortized premiums/discounts) (1,739,518) Net position, GAAP basis, end of year $ 1,011,685 Totals may not add due to rounding 157 Combining and Individual Funds Statements and Schedules — Proprietary Funds — Internal Service Funds As of and for the Year Ended June 30, 2017 Deschutes County, Oregon This page left intentionally blank. Deschutes County, Oregon Internal Service Funds Combining Statement of Net Position June 30, 2017 Property and Administrative Board of County Finance Facilities Services Commissioners Finance Reserve Legal ASSETS Current assets: Cash and cash equivalents $ 71,009 $ 46,832 $ 18,416 $ 10,029 $ 96,917 $ 57,735 Investments, at fair value; plus accrued interest 304,356 200,727 78,934 42,984 415,402 247,462 Accounts receivable 86,236 - - - - - Prepaid expenses 7,000 - - 158,652 - - Total current assets 468,600 247,558 97,351 211,665 512,319 305,198 Noncurrent assets: Capital assets: Capital assets not being depreciated Construction in progress Capital assets net of accumulated depreciation: Land improvements Equipment Vehicles Total capital assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - pension Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Current portion of noncurrent liabilities Total current liabilities - 936,781 2,835 - 8,798 3,935 11,632 - - 940,716 - - 480,233 247,558 97,351 1,152,381 512,319 305,198 885,810 522,649 117,163 792,380 249,065 885,810 522,649 117,163 792,380 249,065 41,467 9,131 6,119 3,699 75,550 5,703 120,099 176,093 - 172,715 - 82,081 161,566 185,224 6,119 176,414 75,550 87,784 Noncurrent liabilities Compensated leave 144,698 212,160 - 208,091 98,893 Net OPEB obligation 576,439 157,529 70,013 228,709 140,026 Net Pension Liability 1,729,540 1,020,470 228,768 1,547,124 486,303 Accrued claims payable - - - - - Less current portion of noncurrent liabilities (120,099) (176,093) - (172,715) (82,081) Total noncurrent liabilities 2,330,578 1,214,066 298,781 1,811,208 - 643,140 Total liabilities 2,492,144 1,399,290 304,900 1,987,623 75,550 730,924 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension 58,705 34,637 7,765 52,513 16,506 Total deferred inflows of resources 58,705 34,637 7,765 52,513 16,506 NET POSITION Net investment in capital assets 11,632 - - 940,716 - - Unrestricted (1,196,439) (663,720) (98,151) (1,036,091) 436,770 (193,167) Total net position $ (1,184,807) $ (663,720) $ (98,151) $ (95,375) $ 436,770 $ (193,167) Totals may not add due to rounding 158 Deschutes County, Oregon Internal Service Funds Combining Statement of Net Position June 30, 2017 Human Information Information Health Resources Technology Tech Reserve Insurance Benefits Total ASSETS 229,345 22,062 967,186 Current assets: 366,401 75,847 1,801,664 Cash and cash equivalents $ 113,620 $ 113,186 $ 133,905 $ 1,023,215 $ 2,957,155 $ 4,642,019 Investments, at fair value; plus accrued interest 486,989 485,131 573,937 4,385,644 12,674,779 19,896,345 Accounts receivable 16,919 150 - - - 103,305 Prepaid expenses - - - - - 165,652 Total current assets 617,528 598,467 707,842 5,408,859 15,631,934 24,807,321 Noncurrent assets: Capital assets: Capital assets not being depreciated Construction in progress Capital assets net of accumulated depreciation: Land improvements Equipment Vehicles Total capital assets 936,781 - 26,000 28,835 185,160 - 197,892 - 7,869 7,869 185,160 33,869 1,171,377 Total assets 617,528 598,467 893,002 5,442,728 15,631,934 25,978,698 DEFERRED OUTFLOWS OF RESOURCES Differences between Expected/Actual Experience 261,064 937,146 - 133,296 - 3,898,573 Total Deferred Outflows of Resources 261,064 937,146 133,296 3,898,573 LIABILITIES Current liabilities: Accounts payable Current portion of noncurrent liabilities Total current liabilities Noncurrent liabilities Compensated leave Net OPEB obligation Net Pension Liability Accrued claims payable Less current portion of noncurrent liab Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position 19,689 15,592 59,081 277,655 513,685 43,110 190,356 2,123,724 2,107,940 5,016,117 62,798 205,948 2,182,804 2,385,595 5,529,802 51,939 229,345 22,062 967,186 186,701 366,401 75,847 1,801,664 509,725 1,829,780 260,252 - 7,611,962 - - 4,210,825 2,107,940 6,318,765 (43,110) (190,356) (2,123,724) (2,107,940) (5,016,117) 705,256 2,235,169 2,445,262 - 11,683,460 768,054 2,441,116 4,628,066 2,385,595 17,213,262 17,301 62,107 8,834 258,368 17,301 62,107 - 8,834 258,368 - - 185,160 26,000 - 1,163,508 93,237 (967,611) 707,842 913,123 13,246,339 11,242,133 $ 93,237 $ (967,611) $ 893,002 $ 939,124 $ 13,246,339 $ 12,405,641 Totals may not add due to rounding 159 Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2017 Totals may not add due to rounding 160 Property and Administrative Board of County Finance Facilities Services Commissioners Finance Reserve Legal OPERATING REVENUES Charges for services $ 3,319,879 $ 1,257,717 $ 409,976 $ 1,831,092 $ 343,160 $ 984,643 Total operating revenues 3,319,879 1,257,717 409,976 1,831,092 343,160 984,643 OPERATING EXPENSES Personnel 2,254,299 1,186,584 407,972 1,635,478 - 822,646 Materials and services 1,091,886 214,490 197,466 367,267 506,615 162,577 Depreciation 1,093 - - 7,870 - - Total operating expenses 3,347,278 1,401,073 605,437 2,010,615 506,615 985,222 Operating income (loss) (27,400) (143,356) (195,461) (179,523) (163,455) (579) NONOPERATING REVENUES (EXPENSES) Investment earnings 3,010 1,992 748 1,655 7,753 2,775 Total nonoperating revenues (expenses) 3,010 1,992 748 1,655 7,753 2,775 Income (loss) before transfers (24,390) (141,365) (194,713) (177,869) (155,702) 2,196 OTHER FINANCING SOURCES (USES) Transfers in 40,000 213,450 600,000 - Transfers out (40,260) - - - (260,000) Equity transfer 695,591 (695,591) Net other financing sources (uses) (40,260) 40,000 213,450 695,591 (355,591) - Change in net position (64,650) (101,365) 18,737 517,722 (511,293) 2,196 Net position - Beginning ofyear (1,120,157) (562,355) (116,888) (613,097) 948,063 (195,363) Net position - Endofyear $ (1,184,807) $ (663,720) $ (98,151) $ (95,374) $ 436,770 $ (193,167) Totals may not add due to rounding 160 Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2017 Human Information Health Resources Technology IT Reserve Insurance Benefits Total OPERATING REVENUES Charges for services $ 1,234,678 $ 2,559,116 $ 234,000 $ 3,106,279 $ 21,385,182 $ 36,665,722 Total operating revenues 1,234,678 2,559,116 234,000 3,106,279 21,385,182 36,665,722 OPERATING EXPENSES Personnel Materials and services Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings Total nonoperating revenues (expenses), net Income (loss) before transfers OTHER FINANCING SOURCES (USES) Transfers in Transfers out Net other financing sources (uses) Change in net position Net position - Beginning of year Net position - End of year 801,967 2,019,669 - 355,165 - 9,483,778 366,319 513,780 298,653 738,828 20,167,947 24,625,828 - - 84,631 1,858 - 95,452 1,168,286 2,533,449 383,284 1,095,850 20,167,947 34,205,059 70,844 66,392 25,667 (149,284) 2,010,429 1,217,235 2,460,664 4,452 4,509 6,686 37,053 104,534 175,166 4,452 4,509 6,686 37,053 104,534 175,166 70,844 30,175 (142,598) 2,047,482 1,321,768 2,635,829 66,000 (1,000) 919,450 (301,260) - 66,000 (1,000) - 618,190 70,844 96,175 (142,598) 2,046,482 1,321,768 3,254,019 22,393 (1,063,786) 1,035,600 (1,107,358) 11,924,570 9,151,622 $ 93,237 $ (967,611) $ 893,002 $ 939,124 $ 13,246,339 $ 12,405,641 Totals may not add due to rounding 161 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2017 Property and Administrative Board of County Finance Facilities Services Commissioners Finance Reserve Legal CASH FLOWS FROM OPERATING ACTIVITIES (68,975) (28,961) 101,958 345,884 (49,480) 4,356 Receipts from customers $ 3,318,311 $ 1,257,717 $ 409,980 $ 1,831,159 $ 343,160 $ 985,168 Payments to employees (2,147,022) (1,011,221) (395,546) (1,443,100) - (789,386) Payments to suppliers (1,102,651) (211,526) (195,984) (524,683) (470,021) (149,805) Net cash provided (used) by operating activities 68,639 34,971 (181,550) (136,624) (126,861) 45,976 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES $ 71,009 $ 46,832 $ 18,416 $ 10,029 $ 96,917 Transfers in - 40,000 213,450 600,000 - Transfers out (40,260) - - (260,000) Net cash provided (used) by noncapital financing activities (40,260) 40,000 213,450 340,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets (9,261) (695,591) Net cash provided (used) by capital and related financing activities (9,261) (695,591) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments Interest Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances - Beginning of year Balances - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense Change in operating accruals Receivables Prepaid Expenses Defined benefit pension accounts Accounts payable Claims payable Compensated leave OPEB obligation Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments (31,698) (68,975) (28,961) 101,958 345,884 (49,480) 4,356 2,570 964 2,529 12,091 3,717 (27,342) (66,405) (27,997) 104,487 357,975 (45,763) (8,224) 8,566 3,903 (32,137) (124,477) 213 79,233 38,266 14,513 42,166 221,395 57,523 $ 68,639 $ 34,971 $ (181,550) $ (136,624) $ (126,861) $ 45,976 $ 71,009 $ 46,832 $ 18,416 $ 10,029 $ 96,917 $ 57,735 $ (27,400) $ (143,356) $ (195,461) $ (179,523) $ (163,455) $ (579) 1,093 7,870 (1,567) 65 - 523 - - - (158,652) 18,931 11,530 144,734 115,009 7,048 195,195 - 8,157 (10,764) 2,964 1,486 1,239 17,663 1,243 (70,965) 48,254 - (20,386) 14,346 33,507 12,101 5,378 17,569 10,756 $ 68,639 $ 34,971 $ (181,550) $ (136,624) $ (126,861) $ 45,976 $ (1,511) $ (850) $ (329) $ (539) $ (3,252) $ (1,156) Totals may not add due to rounding 162 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2017 Human Information Health Resources Technology IT Reserve Insurance Benefits Total CASH FLOWS FROM OPERATING ACTIVITIES 66,000 Receipts from customers $ 1,265,141 $ 2,559,069 $ 234,000 $ 3,106,271 $ 21,412,783 $ 36,722,764 Payments to employees (707,859) (1,974,206) - (327,505) - (8,795,845) Payments to suppliers (361,213) (501,755) (317,532) (2,408,243) (20,878,576) (27,121,988) Net cash provided (used) by operating activities 196,069 83,108 (83,532) 370,523 534,208 804,931 Transfers in 66,000 919,450 Transfers out - (1,000) (301,260) Net cash provided (used) by noncapital financing 66,392 $ 25,667 $ (149,284) $ 2,010,425 $ 1,217,235 $ 2,460,660 activities 66,000 (1,000) 618,190 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES - - 84,631 1,858 - 95,452 Capital assets (33,043) (8,393) (746,288) Net cash provided (used) by capital and related 30,464 (50) - - 27,601 57,036 financing activities - - (33,043) (8,393) - (746,288) CASH FLOWS FROM INVESTING ACTIVITIES 59,385 116,414 29,802 (34,350) 641,393 Sale (purchase) of investments (177,980) (141,738) 57,082 (517,899) (1,102,110) (1,613,917) Interest 5,787 6,068 9,975 56,054 161,983 266,094 Net cash provided (used) by investing activities (172,192) (135,671) 67,058 (461,845) (940,126) (1,347,823) Net increase (decrease) in cash and cash equivalents 23,877 13,437 (49,517) (100,716) (405,918) (670,991) Balances - Beginning of yeas 89,742 99,749 183,423 1,123,927 3,363,073 5,313,010 Balances- End of year $ 113,620 $ 113,186 $ 133,905 $ 1,023,211 $ 2,957,155 $ 4,642,019 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 66,392 $ 25,667 $ (149,284) $ 2,010,425 $ 1,217,235 $ 2,460,660 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense - - 84,631 1,858 - 95,452 Change in operating accruals Receivables 30,464 (50) - - 27,601 57,036 Prepaid Expenses - - - - (128,191) Defined benefit pension accounts 59,385 116,414 29,802 (34,350) 641,393 Accounts payable 5,105 12,028 (18,879) (11,526) (205,209) (204,646) Claims payable - - (1,657,894) (447,369) (2,105,263) Compensated leave (3,318) (92,633) (7,968) (132,671) OPEB obligation 38,041 21,682 5,826 (23,699) 121,161 Net cash provided (used) by operating activities $ 196,069 $ 83,108 $ (83,532) $ 370,523 $ 534,208 $ 804,931 NONCASH INVESTING ACTIVITIES Change in fair value of investments $ (2,029) $ (2,130) $ (3,207) $ (21,591) $ (63,606) $ (100,201) Totals may not add due to rounding 163 Deschutes County, Oregon Property and Facilities Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Transfers out Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred outflows of resources Accrued compensated leave Other postemployement benefits Net pension liability Deferred inflows - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 3,192,602 $ 3,192,602 $ 3,319,879 $ 127,277 3,192,602 3,192,602 3,319,879 127,277 3,296,888 3,296,888 3,248,169 48,719 40,260 40,260 40,260 - 278,954 278,954 - 278,954 3,616,102 3,616,102 3,288,429 327,673 (423,500) (423,500) 31,449 454,949 3,500 3,500 3,689 189 (420,000) (420,000) 35,139 455,139 420,000 420,000 392,674 (27,326) $ - $ - 427,813 $ 427,813 Totals may not add due to rounding 164 (680) 11,632 885,810 (144,698) (576,439) (1,729,540) (58,705) $ (1,184,807) Deschutes County, Oregon Administrative Services Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Other financing sources Transfers in Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Deferred outflows of resources Accrued compensated leave Other postemployement benefits Net pension liability Deferred inflows - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 1,259,765 $ 1,259,765 $ 1,257,717 $ (2,048) 1,259,765 1,259,765 1,257,717 (2,048) 1,302,161 1,302,161 1,225,710 76,451 179,204 179,204 - 179,204 1,481,365 1,481,365 1,225,710 255,655 (221,600) (221,600) 32,007 253,607 1,600 1,600 2,440 40,000 40,000 40,000 840 (180,000) (180,000) 74,447 254,447 180,000 180,000 164,429 (15,571) $ - $ - 238,875 $ 238,875 Totals may not add due to rounding 165 (448) 522,649 (212,160) (157,529) (1,020,470) (34,637) $ (663,720) Deschutes County, Oregon Board of County Commissioners Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Other financing sources Transfers in Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Deferred outflows of resources Other postemployement benefits Net pension liability Deferred inflows - pension Net position, GAAP basis, end of year Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget $ 408,392 $ 408,392 $ 409,980 $ 1,588 408,392 408,392 409,980 1,588 623,444 623,444 593,012 30,432 48,698 48,698 - 48,698 672,142 672,142 593,012 79,130 (263,750) (263,750) (183,031) 80,719 300 300 924 624 213,450 213,450 213,450 - (50,000) (50,000) 31,343 81,343 50,000 50,000 60,065 10,065 $ - $ - 91,408 $ 91,408 Totals may not add due to rounding 166 (176) 117,163 (70,013) (228,768) (7,765) $ (98,151) Deschutes County, Oregon Finance Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred outflows of resources Accrued compensated leave Other postemployement benefits Net pension liability Deferred inflows - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 1,804,978 $ 1,804,978 $ 1,831,092 $ 26,114 1,804,978 1,804,978 1,831,092 26,114 1,838,133 1,838,133 1,810,367 27,766 155,345 155,345 - 155,345 1,993,478 1,993,478 1,810,367 183,111 (188,500) (188,500) 20,725 209,225 2,500 2,500 1,751 (749) (186,000) (186,000) 22,475 208,475 186,000 186,000 185,584 (416) $ - $ - 208,059 $ 208,059 Totals may not add due to rounding 167 (93) 940,716 792,380 (208,091) (228,709) (1,547,124) (52,513) $ (95,374) Deschutes County, Oregon Finance Reserve Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Transfers out Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Other financing sources Transfers in Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Net position, GAAP basis, end of year Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget $ 343,160 $ 343,160 $ 343,160 $ - 343,160 343,160 343,160 - 1,674,160 1,674,160 1,202,206 471,954 260,000 260,000 260,000 - 1,934,160 1,934,160 1,462,206 471,954 (1,591,000) (1,591,000) (1,119,046) 471,954 10,000 10,000 8,680 (1,320) 600,000 600,000 600,000 - (981,000) (981,000) (510,366) 470,634 981,000 981,000 948,063 (32,937) $ - $ - 437,697 $ 437,697 Totals may not add due to rounding 168 (927) $ 436,770 Deschutes County, Oregon Legal Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Deferred outflows of resources Accrued compensated leave Other postemployement benefits Net pension liability Deferred inflows - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 983,538 $ 983,538 $ 984,645 $ 1,107 983,538 983,538 984,645 1,107 1,037,093 1,037,093 951,963 85,130 102,645 102,645 - 102,645 1,139,738 1,139,738 951,963 187,775 (156,200) (156,200) 32,682 188,882 1,200 1,200 3,328 2,128 (155,000) (155,000) 36,009 191,009 155,000 155,000 264,038 109,038 $ - $ - 300,048 $ 300,048 Totals may not add due to rounding 169 (553) 249,065 (98,893) (140,026) (486,303) (16,506) $ (193,167) Deschutes County, Oregon Human Resources Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 981,165 $ 981,165 $ 1,234,677 $ 253,512 981,165 981,165 1,234,677 253,512 1,133,285 1,133,285 1,074,178 59,107 200,880 200,880 - 200,880 1,334,165 1,334,165 1,074,178 259,987 (353,000) (353,000) 160,499 513,499 3,000 3,000 5,539 2,539 (350,000) (350,000) 166,038 516,038 Fund balance, Beginning of year Fund 350,000 350,000 432,888 82,888 balance, budget basis, End of year $ - $ - 598,926 $ 598,926 Unrealized gain (loss) on investments Deferred outflows of resources Accrued compensated leave Other postemployement benefits Net pension liability Deferred inflows - pension Net position, GAAP basis, end of year Totals may not add due to rounding 170 (1,087) 261,064 (51,939) (186,701) (509,725) (17,301) $ 93,237 Deschutes County, Oregon Information Technology Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 Other financing sources Transfers in Budgeted Amounts Change in fund balance (364,227) (364,227) 142,724 506,951 Fund balance, Beginning of year Fund 364,227 364,227 441,235 77,008 balance, budget basis, End of year $ - $ - 583,958 $ 583,958 Variance with (1,083) Original Budget Final Budget Actual Final Budget OPERATING REVENUES (366,401) Net pension liability (1,829,780) Deferred inflows - pension Charges for services $ 2,543,137 $ 2,543,137 $ 2,559,119 $ 15,982 Total operating revenues 2,543,137 2,543,137 2,559,119 15,982 EXPENDITURES Current - departmental County services 2,747,659 2,747,659 2,487,987 259,672 Not allocated to organizational units: Contingency 228,705 228,705 - 228,705 Total expenditures 2,976,364 2,976,364 2,487,987 488,377 Operations, net (433,227) (433,227) 71,132 504,359 NONOPERATING REVENUES Investment earnings 3,000 3,000 5,592 2,592 Other financing sources Transfers in 66,000 66,000 66,000 - Change in fund balance (364,227) (364,227) 142,724 506,951 Fund balance, Beginning of year Fund 364,227 364,227 441,235 77,008 balance, budget basis, End of year $ - $ - 583,958 $ 583,958 Unrealized gain (loss) on investments (1,083) Deferred outflows of resources 937,146 Accrued compensated leave (229,345) Other postemployement benefits (366,401) Net pension liability (1,829,780) Deferred inflows - pension (62,107) Net position, GAAP basis, end of year $ (967,611) Totals may not add due to rounding 171 Deschutes County, Oregon Information Technology Reserve Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, beginning of year Fund balance, budget basis, end of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 234,000 $ 234,000 $ 234,000 $ - 234,000 234,000 234,000 - 509,000 509,000 331,696 177,304 509,000 509,000 331,696 177,304 (275,000) (275,000) (97,696) 177,304 4,500 4,500 7,968 3,468 (270,500) (270,500) (89,728) 180,772 714,828 714,828 798,852 84,024 $ 444,328 $ 444,328 709,124 $ 264,796 Totals may not add due to rounding 172 (1,281) 185,160 $ 893,002 Deschutes County, Oregon Insurance Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Transfers out Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred outflows of resources Accrued compensated leave Other postemployement benefits Net pension liability Accrued claims payable Deferred inflows - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 3,062,270 $ 3,062,270 $ 3,106,275 $ 44,005 3,062,270 3,062,270 3,106,275 44,005 2,693,905 3,193,905 2,732,620 461,285 1,000 1,000 1,000 - 4,407,365 3,907,365 - 3,907,365 7,102,270 7,102,270 2,733,620 4,368,650 (4,040,000) (4,040,000) 372,655 4,412,655 40,000 40,000 46,845 6,845 (4,000,000) (4,000,000) 419,500 4,419,500 4,000,000 4,000,000 4,940,070 940,070 $ - $ - 5,359,570 $ 5,359,570 Totals may not add due to rounding 173 (9,792) 33,869 133,296 (22,062) (75, 847) (260,252) (4,210,825) (8,834) $ 939,124 Deschutes County, Oregon Health Benefits Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Year Ended June 30, 2017 Unrealized gain (loss) on investments (28,299) Accrued claims payable (2,107,940) Net position, GAAP basis, end of year $ 13,246,339 Totals may not add due to rounding 174 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget OPERATING REVENUES Charges for services $ 21,137,693 $ 21,137,693 $ 21,385,182 $ 247,489 Total operating revenues 21,137,693 21,137,693 21,385,182 247,489 EXPENDITURES Current - departmental County services 21,240,891 21,240,891 20,673,366 567,525 Not allocated to organizational units: Contingency 14,338,802 14,338,802 - 14,338,802 Total expenditures 35,579,693 35,579,693 20,673,366 14,906,327 Operations, net (14,442,000) (14,442,000) 711,816 15,153,816 NONOPERATING REVENUES Investment earnings 115,000 115,000 132,833 17,833 Change in fund balance (14,327,000) (14,327,000) 844,648 15,171,648 Fund balance, Beginning of year Fund 14,327,000 14,327,000 14,537,929 210,929 balance, budget basis, End of year $ - $ - 15,382,578 $ 15,382,578 Unrealized gain (loss) on investments (28,299) Accrued claims payable (2,107,940) Net position, GAAP basis, end of year $ 13,246,339 Totals may not add due to rounding 174 Other Financial Schedules As of and for the Year Ended June 30, 2017 Deschutes County, Oregon Deschutes County, Oregon Schedule of Property Tax Transactions - All County Taxes Year Ended June 30, 2017 Beginning Balance and FY Tax Year 2017 Levy FY 2008 & Prior $ 57,018 FY 2009 19,955 FY 2010 27,663 FY 2011 46,698 FY 2012 73,579 FY 2013 258,903 FY 2014 802,240 FY 2015 1,793,096 FY 2016 4,627,881 FY 2017 335,068,002 TOTALS $ 342,775,034 Other Distributions: 264,785 Interest earned on unsegregated taxes Other tax distribution 715,478 TOTAL CASH COLLECTIONS Summary: Deschutes County General Fund Special Revenue Funds Other taxing jurisdictions Totals may not add due to rounding 175 56,291 391,739 $ 324,903,496 $ 776,622 997,179 6,561,538 $ 8,335,339 Turnovers from Taxes Interest County Receivable June Adjustments (Discount) Treasurer 30, 2017 $ (3,328) $ 5,633 $ 11,121 $ 48,201 (801) 1,702 8,520 12,335 (1,277) 3,299 8,065 21,620 (9,559) 9,551 24,671 22,019 (10,003) 17,699 51,172 30,104 (13,001) 71,136 264,785 52,254 (17,059) 166,263 715,478 235,966 (29,720) 147,698 920,562 990,512 (109,238) 123,872 2,717,008 1,925,506 (1,825,429) (8,511,667) 319,734,084 4,996,821 $ (2,019,415) $ (7,964,813) 324,455,467 $ 8,335,339 Totals may not add due to rounding 175 56,291 391,739 $ 324,903,496 $ 776,622 997,179 6,561,538 $ 8,335,339 Deschutes County, Oregon Schedule of Long -Term Debt Transactions Year Ended June 30, 2017 Totals may not add due to rounding 176 Final Amount of Outstanding Bonds Outstanding Date of Maturity Original July 1, Bonds Called and June 30, Series Issue Date Issue 2016 Issued Matured 2017 BONDSPAYABLE General Obligation Bonds Refunding Series 2012 12/19/2012 12/01/2016 $ 12,640,000 $ 2,595,000 $ $ 2,595,000 $ Total General Obligation Bonds 12,640,000 2,595,000 - 2,595,000 - Pension Bonds Series 2002 03/28/2002 06/01/2028 5,429,586 4,035,315 85,902 3,949,413 Series 2004 05/27/2004 06/01/2028 7,090,000 6,200,000 250,000 5,950,000 Total Pension Bonds 12,519,586 10,235,315 - 335,902 9,899,413 Full Faith and Credit Bonds Refunding Series 2005 08/11/2005 06/01/2018 5,915,000 1,075,000 530,000 545,000 Series 2008 12/30/2008 06/01/2028 9,635,000 7,030,000 465,000 6,565,000 Series 2009 04/09/2009 06/01/2028 3,215,000 2,285,000 155,000 2,130,000 Series 2010 05/27/2010 12/01/2029 1,320,000 1,050,000 60,000 990,000 Refunding Series 2012 03/29/2012 12/01/2032 26,345,000 22,950,000 1,120,000 21,830,000 Series 2013 08/08/2013 06/01/2038 8,405,000 7,740,000 235,000 7,505,000 Refunding Series 2015 12/08/2015 12/01/2026 3,775,000 3,775,000 384,400 3,390,600 Refunding Series 2016 05/25/2016 06/01/2027 6,277,000 6,277,000 521,000 5,756,000 Total Full Faith and Credit Bonds 64,887,000 52,182,000 - 3,470,400 48,711,600 Total Long -Term Debt $ 90,046,586 $ 65,012,315 $ - $ 6,401,302 $ 58,611,013 Totals may not add due to rounding 176 Series BONDSPAYABLE General Obligation Bonds Refunding Series 2012 Total General Obligation Bonds Pension Bonds Series 2002 Series 2004 Total Pension Bonds Full Faith and Credit Bonds Refunding Series 2005 Series 2008 Series 2009 Series 2010 Refunding Series 2012 Series 2013 Refunding Series 2015 Refunding Series 2016 Total Full Faith and Credit Bonds Total Long -Term Debt Deschutes County, Oregon Schedule of Long -Term Debt Interest Transactions Year Ended June 30, 2017 Unmatured Unmatured Interest and and Rates on Outstanding Coupons Outstanding Outstanding July 1, Bonds Called and June 30, Balances 2016 Issued Matured 2017 3.00% $ 38,925 $ 302,149 38,925 6.85% 3,003,468 %-6.095% 2,837,104 662,414 5,840,571 4.00% 63,475 • 4.625% 2,164,723 75-4.45% 680,920 2-4% 299,514 2-4% 6,269,381 15 - 4.5% 4,254,050 )9-2.49% 373,104 1.68% 652,371 14,757,538 $ 20,637,034 $ Totals may not add due to rounding 177 $ 38,925 $ - 38,925 - 422,206 2,581,262 375,107 2,461,996 797,314 5,043,258 41,675 21,800 302,149 1,862,574 94,684 586,236 35,809 263,706 662,414 5,606,967 311,181 3,942,869 71,298 301,806 107,212 545,160 1,626,421 13,131,117 - $ 2,462,659 $ 18,174,375 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Pension Obligation Bonds Year Ended June 30, 2017 Total Requirements Year of Maturity Principal Interest Total Series 2002 Series 2004 Principal Interest Principal 2018 $ 377,660 $ 805,878 $ 1,183,537 $ 87,660 $ 445,448 $ 290,000 $ 360,430 2019 423,139 813,170 1,236,309 88,139 469,969 335,000 343,201 2020 503,615 792,544 1,296,158 118,615 469,493 385,000 323,051 2021 805,000 550,261 1,355,261 365,000 250,368 440,000 299,893 2022 920,000 498,792 1,418,792 420,000 225,365 500,000 273,427 2023 1,040,000 439,947 1,479,947 480,000 196,595 560,000 243,352 2024 1,170,000 373,383 1,543,383 540,000 163,715 630,000 209,668 2025 700,000 297,995 997,995 - 126,725 700,000 171,270 2026 1,465,000 255,330 1,720,330 685,000 126,725 780,000 128,605 2027 1,640,000 160,866 1,800,866 770,000 79,803 870,000 81,064 2028 855,000 55,095 910,095 395,000 27,058 460,000 28,037 $ 9,899,413 $ 5,043,258 $ 14,942,671 $ 3,949,413 $ 2,581,262 $ 5,950,000 $ 2,461,996 Totals may not add due to rounding 178 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds - Governmental Activities June 30, 2017 Totals may not add due to rounding 179 Total Requirements Ref Series 2005 Year of Maturity Principal Interest Total Principal Interest 2018 $ 2,635,671 $ 1,274,098 $ 3,909,770 $ 545,000 $ 21,800 2019 2,155,590 1,185,460 3,341,050 - - 2020 2,225,539 1,114,757 3,340,296 - - 2021 2,293,510 1,046,422 3,339,932 - - 2022 2,367,236 978,363 3,345,599 - - 2023 2,451,317 896,225 3,347,543 - - 2024 2,405,329 810,558 3,215,888 - - 2025 2,489,863 727,223 3,217,087 - - 2026 2,343,015 640,099 2,983,114 - - 2027 2,425,858 552,223 2,978,080 - - 2028 2,517,678 460,607 2,978,285 - - 2029 1,599,498 364,980 1,964,477 - - 2030 1,659,273 311,798 1,971,071 - - 2031 1,619,048 258,009 1,877,056 - - 2032 1,677,800 203,471 1,881,271 - - 2033 1,732,575 145,876 1,878,451 - - 2034 435,000 107,550 542,550 - - 2035 455,000 87,975 542,975 - - 2036 480,000 67,500 547,500 - - 2037 500,000 45,900 545,900 - - 2038 520,000 23,400 543,400 - - $ 36,988,798 $ 11,302,495 $ 48,291,294 $ 545,000 $ 21,800 Totals may not add due to rounding 179 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds - Governmental Activities June 30, 2017 Totals may not add due to rounding 180 Series 2008 Series 2009 Series 2010 Year of Maturity Principal Interest Principal Interest Principal Interest 2018 $ 485,000 $ 283,549 $ 160,000 $ 89,181 $ 60,000 $ 34,309 2019 500,000 264,149 165,000 83,501 65,000 32,628 2020 525,000 244,149 170,000 76,901 65,000 30,799 2021 545,000 223,149 175,000 70,101 65,000 28,858 2022 565,000 200,531 185,000 63,101 70,000 26,713 2023 590,000 176,519 190,000 55,470 70,000 24,394 2024 615,000 151,149 200,000 47,633 75,000 21,806 2025 640,000 124,243 210,000 39,383 80,000 18,900 2026 670,000 95,763 215,000 30,038 80,000 15,900 2027 700,000 65,613 225,000 20,470 85,000 12,700 2028 730,000 33,763 235,000 10,458 90,000 9,200 2029 - - - - 90,000 5,600 2030 - - - - 95,000 1,900 2031 - - - - - - 2032 - - - - - - 2033 - - - - - - 2034 - - - - - - 2035 - - - - - - 2036 - - - - - - 2037 - - - - - - 2038 - - - - - - $ 6,565,000 $ 1,862,574 $ 2,130,000 $ 586,236 $ 990,000 $ 263,706 Totals may not add due to rounding 180 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds - Governmental Activities June 30, 2017 Totals may not add due to rounding 181 Ref Series 2012 Series 2013 Ref Series 2015 Year of Maturity Principal Interest Principal Interest Principal Interest 2018 $ 943,863 $ 508,780 $ 240,000 $ 304,131 $ 201,809 $ 32,348 2019 968,484 479,972 250,000 296,931 207,106 28,280 2020 1,001,091 450,591 255,000 288,181 209,448 24,135 2021 1,029,600 425,136 265,000 279,256 213,909 19,922 2022 1,058,159 398,449 275,000 269,981 214,077 19,587 2023 1,094,824 365,310 285,000 260,356 221,493 14,177 2024 994,375 330,984 295,000 250,381 225,954 8,606 2025 1,022,218 303,221 305,000 238,581 232,646 2,896 2026 1,058,015 272,017 320,000 226,381 - - 2027 1,085,858 239,859 330,000 213,581 - - 2028 1,117,678 206,806 345,000 200,381 - - 2029 1,149,498 172,799 360,000 186,581 - - 2030 1,189,273 137,717 375,000 172,181 - - 2031 1,229,048 100,828 390,000 157,181 - - 2032 1,272,800 61,890 405,000 141,581 - - 2033 1,312,575 21,001 420,000 124,875 - - 2034 - - 435,000 107,550 - - 2035 - - 455,000 87,975 - - 2036 - - 480,000 67,500 - - 2037 - - 500,000 45,900 - - 2038 - - 520,000 23,400 - - $ 17,527,357 $ 4,475,360 $ 7,505,000 $ 3,942,869 $ 1,726,442 $ 149,951 Totals may not add due to rounding 181 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds - Business Type Activities June 30, 2017 Total Requirements Refunding Series 2012 Refunding Series 2015 Refunding Series 2016 Year of Maturity Principal Interest Total Principal Interest Principal Interest Principal Interest 2018 $ 931,829 $ 253,234 $ 1,185,062 $ 211,137 $ 125,284 $ 187,691 $ 31,249 $ 533,000 $ 96,701 2019 951,110 234,064 1,185,174 216,516 118,842 191,594 27,475 543,000 87,746 2020 969,061 214,544 1,183,604 223,909 112,273 193,152 23,647 552,000 78,624 2021 991,090 195,656 1,186,747 230,400 106,578 200,691 19,728 560,000 69,350 2022 1,004,364 180,238 1,184,602 236,841 100,605 199,523 19,690 568,000 59,942 2023 1,030,283 158,250 1,188,533 245,176 93,185 205,107 14,665 580,000 50,400 2024 1,054,871 135,261 1,190,132 255,625 85,086 208,246 9,519 591,000 40,656 2025 1,077,037 112,947 1,189,984 262,783 77,949 213,254 4,271 601,000 30,727 2026 914,685 91,767 1,006,452 271,985 69,928 32,700 1,209 610,000 20,630 2027 929,343 72,444 1,001,787 279,143 61,661 32,200 401 618,000 10,382 2028 287,323 53,164 340,486 287,323 53,164 - - - - 2029 295,503 44,421 339,924 295,503 44,421 - - - - 2030 305,728 35,403 341,131 305,728 35,403 - - - - 2031 315,953 25,920 341,872 315,953 25,920 - - - - 2032 327,200 15,910 343,110 327,200 15,910 - - - - 2033 337,425 5,399 342,824 337,425 5,399 - - - - $ 11,722,802 $1,828,622 $ 13,551,424 $4,302,643 $1,131,607 $1,664,158 $ 151,855 $5,756,000 $ 545,160 Totals may not add due to rounding 182 Statistical Section As of and for the Year Ended June 30, 2017 Deschutes County, Oregon Deschutes County, Oregon Statistical Section Contents This part of Deschutes County's statistical comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the County's overall health. Pages Financial Trends 184-193 These schedules contain trend information to help the reader understand how the County's financial performance and well-being have changed over time. Revenue Capacity 194-199 These schedules contain information to help the reader assess the County's most significant local revenue source, the property tax. Debt Capacity 200-206 These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Demographic and Economic Information 207-208 These schedules offer demographic and economic indicators to help the reader understanding the environment within which the County's financial activities take place. Operating Information 210-215 These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the published comprehensive annual financial reports for the relevant year. The County implemented GASB Statement No. 65 in fiscal 2014; schedules containing information for years prior to fiscal year 2014 have not been restated in accordance with GASB No. 65, unless otherwise stated. IF -it] Deschutes County, Oregon Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting) Totals may not add due to rounding 184 Fiscal Year 2008 2009 2010 2011 2012 Governmental activities Net investment in capital assets $ 70,023,840 $ 76,240,077 $ 89,584,653 $ 92,525,275 $ 95,512,157 Restricted 2,261,887 2,411,903 3,755,874 3,979,615 4,015,788 Unrestricted 63,957,826 67,437,330 72,846,870 73,592,055 71,206,363 Total governmental activities net position $136,243,553 $146,089,310 $166,187,397 $170,096,945 $170,734,308 Business -type activities Net investment in capital assets $ 17,577,695 $ 20,821,757 $ 23,311,911 $ 25,780,444 $ 25,824,953 Restricted 1,172,262 1,130,284 1,177,729 1,191,785 951,696 Unrestricted 8,835,465 4,004,099 615,719 (1,399,646) (1,667,939) Total business -type activities net position $ 27,585,422 $ 25,956,140 $ 25,105,359 $ 25,572,583 $ 25,108,710 Primary government Net investment in capital assets $ 87,601,535 $ 97,061,834 $112,896,564 $118,305,719 $121,337,110 Restricted 3,434,149 3,542,187 4,933,603 5,171,400 4,967,484 Unrestricted 72,793,291 71,441,429 73,462,589 72,192,409 69,538,424 Total primary government net position $163,828,975 $172,045,450 $191,292,756 $195,669,528 $195,843,018 Totals may not add due to rounding 184 Deschutes County, Oregon Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting) Totals may not add due to rounding 185 Fiscal Year 2013 2014 2015 2016 2017 Governmental activities Net investment in capital assets $ 89,462,800 $ 90,528,453 $ 91,385,492 $101,724,105 $108,576,334 Restricted 2,368,923 899,558 57,774,179 60,999,381 60,223,775 Unrestricted 76,086,991 85,864,467 13,564,091 (9,004,273) (10,585,809) Total governmental activities net position $167,918,714 $177,292,478 $162,723,762 $153,719,213 $158,214,300 Business -type activities Net investment in capital assets $ 27,369,640 $ 27,996,595 $ 31,628,811 $ 33,549,044 $ 35,249,434 Restricted 726,437 326,768 416,356 257,743 - Unrestricted (3,269,965) (1,578,435) (3,620,616) (4,431,920) (3,895,146) Total business -type activities net position $ 24,826,112 $ 26,744,928 $ 28,424,551 $ 29,374,867 $ 31,354,288 Primary government Net investment in capital assets $116,832,440 $118,525,048 $123,014,302 $135,273,150 $143,825,767 Restricted 3,095,362 1,226,325 58,190,535 61,257,124 60,223,775 Unrestricted 72,817,030 84,286,032 9,943,475 (13,436,194) (14,480,955) Total primary government net position $192,744,832 $ 204,037,405 $191,148,313 $183,094,080 $189,568,588 Totals may not add due to rounding 185 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Totals may not add due to rounding 186 Fiscal Year 2008 2009 2010 2011 2012 Expenses Governmental activities: General government $ 26,992,445 $ 27,241,378 $ 24,782,169 $ 22,540,890 $ 24,888,722 Public safety 45,723,250 47,493,147 50,033,277 53,944,031 56,696,103 County roads 14,609,557 17,478,873 14,701,828 18,600,706 16,436,367 Health and welfare 22,733,857 23,203,391 23,831,929 28,828,892 30,416,145 Education 1,213,866 1,137,873 1,078,769 979,980 687,511 Interest and fiscal charges 3,160,571 3,311,808 3,401,395 3,275,788 2,716,110 Total governmental activities expenses 114,433,546 119,866,470 117,829,367 128,170,287 131,840,958 Business -type activities: Solid waste 6,462,905 8,414,867 7,335,596 7,347,661 7,801,912 Fair & expo center 4,539,224 4,152,893 3,710,074 3,819,399 3,876,575 RV park - 312,882 322,179 343,898 338,003 Total business -type activities expenses 11,002,129 12,880,642 11,367,849 11,510,958 12,016,490 Total primary government expenses $ 125,435,675 $ 132,747,112 $ 129,197,216 $ 139,681,245 $ 143,857,448 Program Revenues Governmental activities: Charges for services: General government $ 9,692,948 $ 14,590,354 $ 12,272,431 $ 11,744,342 $ 9,975,482 Public safety 11,503,488 3,665,436 7,508,624 7,434,816 6,317,924 County roads 14,899,440 12,822,399 13,118,125 13,808,489 15,917,719 Health and welfare 5,134,211 1,146,444 1,018,990 1,747,716 2,062,633 Education 1,021,353 919,915 - - - Operating grants and contributions 22,035,484 30,390,518 29,127,520 32,195,732 33,630,072 Capital grants and contributions 16,335,611 1,780,050 9,209,437 765,663 232,363 Total governmental activities program revenues 80,622,535 65,315,116 72,255,127 67,696,758 68,136,193 Business -type activities: Charges for services: Solid waste 7,749,609 6,639,633 6,362,100 6,665,487 6,506,366 Fair & expo center 2,709,993 1,912,771 1,536,329 1,992,262 1,963,398 RV park - 89,005 115,126 162,049 154,633 Operating grants and contributions 84,955 54,405 85,765 39,271 86,306 Capital grants and contributions 94,190 - - - - Total business -type activities program revenues 10,638,747 8,695,814 8,099,320 8,859,069 8,710,703 Total primary government program revenues $ 91,261,282 $ 74,010,930 $ 80,354,447 $ 76,555,827 $ 76,846,896 Net (Expense)/Revenue Governmental activities $ (33,811,011) $ (54,551,354) $ (45,574,240) $ (60,473,529) $ (63,704,765) Business -type activities (363,382) (4,184,828) (3,268,529) (2,651,889) (3,305,787) Total primary government net expense $ (34,174,393) $ (58,736,182) $ (48,842,769) $ (63,125,418) $ (67,010,552) Totals may not add due to rounding 186 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Totals may not add due to rounding 187 Fiscal Year 2013 2014 2015 2016 2017 Expenses Governmental activities: General government $ 25,312,619 $ 25,801,150 $ 24,792,417 $ 34,853,689 $ 29,748,439 Public safety 57,806,152 57,786,656 46,351,357 74,941,547 65,276,283 County roads 16,139,486 15,441,429 16,818,974 18,269,586 17,627,051 Health and welfare 31,682,855 35,154,506 31,944,749 43,850,703 39,370,403 Education 684,632 685,916 656,218 610,125 263,106 Interest and fiscal charges 2,485,174 2,556,364 2,385,397 2,284,295 2,175,774 Total governmental activities expenses 134,110,918 137,426,020 122,949,114 174,809,945 154,461,056 Business -type activities: Solid waste 8,122,538 6,327,028 7,614,444 9,272,404 10,028,102 Fair & expo center 3,392,264 3,368,464 3,466,338 4,290,630 4,173,908 RV park 339,145 355,752 473,792 477,924 407,928 Total business -type activities expenses 11,853,947 10,051,244 11,554,573 14,040,958 14,609,937 Total primary government expenses $ 145,964,865 $ 147,477,264 $ 134,503,687 $ 188,850,903 $ 169,070,993 Program Revenues Governmental activities: Charges for services: General government $ 11,827,132 $ 11,593,147 $ 14,463,863 $ 18,675,554 $ 16,435,374 Public safety 8,876,636 6,252,467 6,051,487 5,620,314 6,765,336 County roads 14,730,662 16,933,084 17,690,071 19,168,851 19,082,452 Health and welfare 2,243,963 5,222,623 1,836,516 2,021,579 1,940,978 Education - - - - - Operating grants and contributions 31,233,012 40,070,038 40,911,962 42,990,874 40,087,120 Capital grants and contributions 86,514 437,240 193,226 7,003,178 1,084,073 Total governmental activities program revenues 68,997,919 80,508,599 81,147,126 95,480,351 85,395,333 Business -type activities: Charges for services: Solid waste 6,793,369 7,364,322 8,088,089 8,865,019 9,791,844 Fair & expo center 1,761,108 1,783,377 2,257,064 2,500,139 2,710,373 RV park 165,096 217,036 346,987 408,513 384,279 Operating grants and contributions 49,790 50,964 51,244 53,667 570,037 Capital grants and contributions - 176,289 - - - Total business -type activities program revenues 8,769,363 9,591,988 10,743,383 11,827,338 13,456,534 Total primary government program revenues $ 77,767,282 $ 90,100,587 $ 91,890,509 $ 107,307,688 $ 98,851,866 Net (Expense)/Revenue Governmental activities $ (65,112,999) $ (56,917,421) $ (41,801,988) $ (79,329,594) $ (69,065,723) Business -type activities (3,084,584) (459,255) (811,190) (2,213,620) (1,153,403) Total primary government net expense $ (68,197,583) $ (57,376,677) $ (42,613,178) $ (81,543,214) $ (70,219,127) Totals may not add due to rounding 187 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Totals may not add due to rounding 188 Fiscal Year 2008 2009 2010 2011 2012 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, levied for general purpose $ 26,369,350 $ 31,833,253 $ 33,441,245 $ 33,663,728 $ 33,682,238 Property taxes, levied for sheriff services 21,530,214 22,976,966 24,094,637 23,666,633 23,551,915 Property taxes, levied for bonded debt 3,097,850 3,233,344 3,513,631 3,460,558 3,290,215 Transient room tax 3,535,226 3,212,173 2,959,337 3,151,974 3,357,365 Investment earnings 4,068,901 2,892,642 1,450,594 981,569 908,178 Interfund equity transfer - - - - - Gain (loss) on sale of capital assets - - - Transfers 246,431 248,733 212,883 (541,385) (447,771) Loss on discontinued project - - - Total governmental activities 58,847,972 64,397,111 65,672,327 64,383,077 64,342,140 Business -type activities: Taxes Property taxes, levied for bonded debt 1,959,960 2,292,465 2,459,814 2,505,852 2,334,005 Investment earnings 989,381 511,814 170,817 71,876 60,134 Interfund equity transfer - - - - - Gain (loss) on sale of capital assets - - Transfers (246,431) (248,733) (212,883) 541,385 447,771 Total business -type activities 2,702,910 2,555,546 2,417,748 3,119,113 2,841,910 Total primary government $ 61,550,882 $ 66,952,657 $ 68,090,075 $ 67,502,190 $ 67,184,050 Change in Net Position Governmental activities $ 25,036,961 $ 9,845,757 $ 20,098,087 $ 3,909,548 $ 637,375 Business -type activities 2,339,528 (1,629,282) (850,781) 467,224 (463,877) Total primary government $ 27,376,489 $ 8,216,475 $ 19,247,306 $ 4,376,772 $ 173,498 Totals may not add due to rounding 188 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Totals may not add due to rounding 189 Fiscal Year 2013 2014 2015 2016 2017 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, levied for general purpose $ 33,971,127 $ 35,079,263 $ 31,747,666 $ 33,533,883 $ 35,363,260 Property taxes, levied for sheriff services 24,285,093 25,284,848 26,640,494 29,508,509 31,128,138 Property taxes, levied for bonded debt 3,083,800 1,982,347 97,428 84,233 - Transient room tax 3,656,126 4,340,159 5,248,199 6,068,098 6,408,477 Investment earnings 787,866 986,444 1,188,209 1,643,757 1,351,378 Interfund equity transfer - - - - - Gain (loss) on sale of capital assets Transfers (337,272) (539,938) (559,305) (513,431) (690,447) Loss on discontinued project (3,149,335) - - - - Total governmental activities 62,297,405 67,133,123 64,362,692 70,325,049 73,560,806 Business -type activities: Taxes Property taxes, levied for bonded debt 2,417,152 2,086,179 2,623,509 2,555,831 2,368,281 Investment earnings 47,562 52,612 71,740 94,674 74,094 Interfund equity transfer - - - - - Gain (loss) on sale of capital assets - - - - - Transfers 337,272 539,938 559,305 513,431 690,447 Total business -type activities 2,801,986 2,678,729 3,254,554 3,163,935 3,132,822 Total primary government $ 65,099,391 $ 69,811,852 $ 67,617,246 $ 73,488,985 $ 76,693,630 Change in Net Position Governmental activities $ (2,815,594) $ 10,215,702 $ 22,560,704 $ (9,004,545) $ 4,495,083 Business -type activities (282,598) 2,219,473 2,443,364 950,315 1,979,419 Total primary government $ (3,098,192) $ 12,435,175 $ 25,004,068 $ (8,054,229) $ 6,474,504 Totals may not add due to rounding 189 Deschutes County, Oregon Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) n/a - Not applicable In accordance with GASB 54, beginning in 2011 new classifications of fund balance for governmental funds are reported that comprise a heirarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Totals may not add due to rounding 190 Fiscal Year 2008 2009 2010 2011 2012 General Fund Unreserved $ 6,729,202 $ 7,119,757 $ 9,933,612 $ S Nonspendable n/a n/a n/a Committed n/a n/a n/a Assigned n/a n/a n/a 9,481,113 10,082,716 Unassigned n/a n/a n/a 4,623,757 5,244,633 Total General Fund $ 6,729,202 $ 7,119,757 $ 9,933,612 $ 14,104,870 $ 15,327,349 All Other Governmental Funds Reserved/Nonspendable $ 989,812 $ 871,486 $ 806,696 $ 888,106 $ 894,228 Unreserved, reported in: Special revenue funds 50,491,712 49,541,406 58,071,242 - - Capital projects funds (2,879,998) 7,228,678 958,911 Debt service funds 1,127,264 959,147 1,101,183 Total Unreserved 48,738,978 57,729,231 60,131,336 - - Restricted, reported in: Special revenue funds n/a n/a n/a 36,777,325 42,713,782 Capital projects funds n/a n/a n/a 1,251,643 1,048,534 Debt service funds n/a n/a n/a 661,359 585,900 Total Restricted 38,690,327 44,348,216 Committed, reported in: Special revenue funds n/a n/a n/a 13,396,391 11,821,006 Capital projects funds n/a n/a n/a 122,361 122,361 Debt service funds n/a n/a n/a - - Total Committed 13,518,752 11,943,367 Assigned, reported in: Special revenue funds n/a n/a n/a 6,236,570 5,903,050 Capital projects funds n/a n/a n/a 174,647 740,173 Debt service funds n/a n/a n/a 839,529 752,599 Total Assigned 7,250,746 7,395,822 Unassigned, reported in: Capital projects funds n/a n/a n/a (3,223,574) (3,989,721) Total Unassigned - - (3,223,574) (3,989,721) Total all other governmental funds $ 49,728,790 $ 58,600,717 $ 60,938,032 $ 57,124,357 $ 60,591,912 n/a - Not applicable In accordance with GASB 54, beginning in 2011 new classifications of fund balance for governmental funds are reported that comprise a heirarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Totals may not add due to rounding 190 General Fund Unreserved Nonspendable Committed Assigned Unassigned Total General Fund All Other Governmental Funds Reserved/Nonspendable Unreserved, reported in: Special revenue funds Capital projects funds Debt service funds Total Unreserved Restricted, reported in: Special revenue funds Capital projects funds Debt service funds Total Restricted Committed, reported in: Special revenue funds Capital projects funds Debt service funds Total Committed Assigned, reported in: Special revenue funds Capital projects funds Debt service funds Total Assigned Unassigned, reported in: Capital projects funds Total Unassigned Total all other governmental funds Deschutes County, Oregon Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2013 2014 2015 2016 2017 S $ $ - $ $ 476,186 7,631 516,523 498,337 469,020 52,967,664 64,717,802 1,782,674 3,944,405 7,505,074 8,657,374 8,031,837 6,222,698 6,311,144 5,369,619 6,836,112 7,649,760 9,183,941 10,620,333 10,483,020 $ 15,493,486 $ 15,681,597 $ 17,705,836 $ 21,374,220 $ 23,826,733 $ 1,272,249 $ 1,418,998 $ 2,542,621 $ 2,663,703 $ 2,859,789 52,491,478 64,710,171 62,650,077 71,847,628 65,125,286 - - - - 7,809,685 476,186 7,631 10,970 - - 52,967,664 64,717,802 62,661,047 71,847,628 72,934,971 10,372,114 13,456,033 13,566,455 11,491,305 13,469,571 - 606,292 394,405 - - 579,897 480,416 482,736 472,561 558,106 10,952,011 14,542,741 14,443,596 11,963,865 14,027,677 4,170,144 759,229 4,929,373 (2,057,525) (1,791,930) (2,057,525) (1,791,930) - $ 68,063,772 $ 78,887,611 $ 79,647,264 $ 86,475,197 $ 89,822,437 In accordance with GASB 54, beginning in 2011 new classifications of fund balance for governmental funds are reported that comprise a heirarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Totals may not add due to rounding 191 Deschutes County, Oregon Changes in Fund Balances - Governmental Funds- Last Ten Fiscal Years (modified accrual basis of accounting) Revenues Taxes Licenses and permits Fines, forfeitures and penalties Special assessments Interest and rents Intergovernmental Charges for services Other Total revenues Expenditures General government Public safety County roads Health and welfare Education Debt service Principal Interest Trustee fees Debt issuance costs Capital outlay Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses) Transfers in Transfers out Debt issuance Bond premium/discount Bonds issued Payments to escrow agent Proceeds of sale of assets Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year 2008 2009 2010 2011 2012 $ 53,685,756 $ 59,765,686 $ 63,729,316 $ 63,806,103 $ 64,546,883 551,882 452,980 549,013 689,142 778,227 1,696,965 1,648,134 1,645,313 1,596,621 1,417,245 482,493 474,559 257,916 193,605 161,466 4,721,688 4,000,663 2,360,035 2,595,846 2,559,272 75,576,276 77,123,068 77,287,814 82,326,719 85,663,964 18,698,609 16,999,531 17,615,561 17,515,802 16,159,689 477,816 357,166 925,947 505,740 439,269 155,891,485 160,821,787 164,370,915 169,229,578 171,726,015 26,919,775 24,916,432 22,473,173 22,614,321 22,606,034 73,785,397 74,219,306 74,626,653 78,159,464 81,610,756 15,263,147 17,004,218 15, 806,002 16,648,991 16,632,188 25,966,357 28,199,244 25,840,307 31,725,577 32,905,053 1,213,866 1,137,873 1,078,769 979,980 687,511 4,349,917 4,523,312 4,595,659 5,678,728 5,296,870 3,051,380 3,090,228 3,296,705 3,157,964 2,631,321 5,210 3,066 2,455 3,218 2,950 - 237,657 49,471 - 372,216 8,658,464 11,559,996 12,596,751 8,245,442 3,692,419 159,213,513 164,891,332 160,365,945 167,213,685 166,437,318 (3,322,028) (4,069,545) 4,004,970 2,015,893 5,288,697 18,214,344 23,231,232 19,839,328 12,313,816 10,701,765 (18,421,256) (23,297,732) (20,008,290) (14,012,126) (11,673,036) - 13,352,250 1,320,000 40,000 - 46,277 (4,838) - - - 21,893,362 - - (21,520,747) 115,835 - (91,077) 13,332,027 1,146,200 (1,658,310) (598,656) $ (3,413,105) $ 9,262,482 $ 5,151,170 $ 357,583 $ 4,690,041 5.5% 5.0% 5.8% 5.6% 5.0% Totals may not add due to rounding 192 Deschutes County, Oregon Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Revenues Taxes Licenses and permits Fines, forfeitures and penalties Special assessments Interest and rents Intergovernmental Charges for services Other Total revenues Expenditures General government Public safety County roads Health and welfare Education Debt service Principal Interest Trustee fees Debt issuance costs Capital outlay Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses) Transfers in Transfers out Debt issuance Bond premium/discount Bonds issued Payments to escrow agent Proceeds of sale of assets Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year 2013 2014 2015 2016 2017 $ 66,038,130 $ 67,157,527 $ 64,043,653 $ 69,254,662 $ 72,725,317 900,224 1,285,225 1,395,229 1,513,320 1,804,402 1,355,143 1,563,725 1,713,279 1,666,944 1,600,649 176,518 125,999 116,946 85,439 70,655 2,463,869 2,616,264 2,801,165 3,191,867 3,042,808 83,911,882 95,464,165 97,854,728 102,449,003 92,313,282 19,108,543 21,137,727 24,577,248 16,657,205 18,295,208 832,505 681,354 1,867,249 1,268,489 1,073,927 174,786, 814 190,031,985 194,369,496 196,086,929 190,926,249 23,036,320 24,185,783 25,028,450 26,813,546 26,361,777 83,718,648 87,910,026 89,007,502 91,353,457 86,897,612 13,454,003 14,105,584 14,795,591 15,253,444 16,013,340 35,248,861 39,671,077 46,096,095 36,778,966 38,856,976 684,632 685,916 656,218 610,125 263,106 5,720,036 5,387,017 3,270,413 3,015,338 2,895,157 2,386,628 2,438,429 2,354,101 2,259,334 2,151,095 2,610 27,810 - - 2,500 23,429 219,610 - - - 2,465,339 12,563,515 6,906,759 7,675,279 10,376,297 166,740,506 187,194,767 188,115,129 183,759,490 183,817,859 8,046,308 2,837,218 6,254,367 12,327,439 7,108,389 13,191,583 11,233,103 14,542,905 10,564,827 23,284,540 (13,625,455) (11,831,461) (15,350,629) (12,403,247) (24,593,177) - - - (13,668) 49,109 218,092 - - 3,000,000 8,555,000 - 1,925,295 (3,023,549) - - (1,904,328) (408,312) 8,174,734 (807,724) (1,831,121) (1,308,637) $ 7,637,996 $ 11,011,952 $ 5,446,643 $ 10,496,318 $ 5,799,752 4.9% 4.5% 3.1% 3.0% 2.9% Totals may not add due to rounding 193 Deschutes County, Oregon Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Real Property Personal Property Manufactured Homes Fiscal Year Estimated Estimated Estimated Ended June 30 Assessed Value Actual Value Assessed Value Actual Value Assessed Value Actual Value 2008 15,020,692 36,089,166 415,380 415,548 58,898 65,957 2009 15,988,780 36,759,449 466,756 466,839 55,989 61,302 2010 16,729,496 32,244,472 439,296 439,299 54,578 60,723 2011 16,875,389 22,613,760 411,330 411,330 48,228 51,783 2012 16,786,626 20,692,642 390,053 390,053 44,522 47,327 2013 17,006,004 20,134,879 376,567 376,567 42,964 45,308 2014 17,812,786 21,290,547 372,149 372,149 47,241 50,377 2015 18,803,090 24,417,972 393,213 393,227 53,660 58,261 2016 19,847,234 27,721,055 415,663 415,679 60,520 70,526 2017 20,943,309 31,302,357 451,004 451,007 65,759 79,422 Sources: Deschutes County Assessor's Department and Deschutes County Tax Office (1) includes tax-exempt property Totals may not add due to rounding 194 Totals may not add due to rounding 195 Deschutes County, Oregon Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Public Utilities Exemptions Total Assessed Value(1) as a Range of Total Percentage of Estimated Taxable Estimated Direct Tax Estimated Assessed Value Actual Value Assessed Value Assessed Value Actual Value Rates Paid Actual Value 352,616 369,411 23,638 15,823,948 36,940,082 2.9780-5.8087 42.901% 388,838 403,899 25,803 16,874,560 37,691,489 2.9170-6.1060 44.839% 417,996 430,990 28,577 17,612,789 33,175,484 2.7805-6.2059 53.176% 436,787 450,305 31,009 17,740,725 23,527,178 2.8947-6.2598 75.537% 438,134 453,696 33,166 17,626,169 21,583,718 2.8818-6.2468 81.818% 429,361 445,442 34,370 17,820,526 21,002,197 2.9121-6.2710 85.014% 441,711 455,806 36,566 18,637,321 22,168,879 2.8159-6.1734 84.235% 475,914 492,477 39,534 19,686,343 25,361,937 2.7502-6.1111 77.777% 652,906 677,075 43,033 20,933,290 28,884,335 2.7398-6.0936 72.622% 560,616 582,833 45,078 21,975,610 32,415,618 2.7311-6.0411 67.932% Totals may not add due to rounding 195 Deschutes County, Oregon Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) Sources: Deschutes County Assessor's Office and Deschutes County Finance Departmen Totals may not add due to rounding 196 Fiscal Year Taxes are Payable 2008 2009 2010 2011 2012 County direct rates Rates levied to all taxable County properties: General 1.2783 1.2783 1.2783 1.2783 1.2783 Jail Bond 0.1370 0.1335 0.1395 0.1358 0.1324 Fairgrounds Bond 0.1285 0.1410 0.1441 0.1464 0.1369 Sheriff (Countywide) 0.9500 0.9500 0.9500 0.9200 0.9200 County Extension/41-1 CSD 0.0224 0.0224 0.0224 0.0224 0.0224 911 CSD 0.1618 0.1618 0.1618 0.1618 0.1618 911 Local Option - 0.2300 0.2300 0.2300 0.2300 County districts paid by all properties 2.6780 2.9170 2.9261 2.8947 2.8818 Rates levied to taxable rural County properties: Sheriff(County) - - - - - Sheriff (Rural) 1.4000 1.4000 1.4000 1.4000 1.4000 Rates levied to incorporated and CSD tax codes: Sheriff (Incorporated) - - - - - Certain County properties are subject to one of the following rates: Bend Library Bond 0.0858 0.0852 0.0868 0.0880 0.0836 Redmond Library Bond 0.0588 0.0567 0.0572 0.0558 0.0498 Sunriver Library Bond 0.0607 0.0590 0.0598 0.0551 0.0550 Paid by Black Butte properties only: Black Butte Ranch CSD 1.0499 1.0499 1.0499 1.0499 1.0499 Black Butte Ranch CSD Local Opt 0.4000 0.4000 0.4000 0.5500 0.5500 Paid by Sunriver properties only: Sunriver Service District 3.0700 3.1300 3.2200 3.3100 3.3100 Range of County Direct Rates Paid 2.6780 - 5.8087 2.9170 - 6.1060 2.7805 - 6.2059 2.8947-6.2598 2.8818-6.2468 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 2.8035 Redmond 6.1643 6.1643 6.1643 6.1643 4.4101 Sisters 2.6417 2.6417 2.6417 2.6417 2.6417 La Pine 1.8800 1.9800 1.9800 1.8000 1.8000 Bend Urban Renewal Special Levy 0.2595 0.2700 0.2666 0.2791 - City of Redmond Bond 0.0755 0.1020 0.1168 0.0947 0.0831 Sunriver Service District 3.0700 3.1300 3.2200 3.3100 3.3100 Redmond Downtown Urban Renewal Levy 0.1719 - - - - Library district rates 0.5500 0.5500 0.5500 0.5500 0.5500 Fire district rates 1.0924 - 3.2087 1.0924 - 3.0742 1.0924 - 3.0705 1.0924-3.0744 1.0924-3.0744 Parks and recreation district rates 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 School district rates 6.4474 - 7.2751 6.8851 - 7.2424 6.5907 - 8.4371 6.4923-8.1206 6.6649-8.4065 Road district rates 0.7831 - 3.6500 0.7831 - 3.6500 0.6600 - 3.6500 0.3248-3.6500 0.5180-2.7331 Other special district rates 0.3898 0.3848 0.3809 0.3793 0.3776 Sources: Deschutes County Assessor's Office and Deschutes County Finance Departmen Totals may not add due to rounding 196 Deschutes County, Oregon Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) Totals may not add due to rounding 197 Fiscal Year Taxes are Payable 2013 2014 2015 2016 2017 County direct rates Rates levied to all taxable County properties: General 1.2783 1.2783 1.2783 1.2783 1.2783 Jail Bond 0.1291 0.0673 - - - Fairgrounds Bond 0.1405 0.1121 0.1377 0.1273 0.1186 Sheriff (Countywide) 0.9500 0.9500 0.9500 0.9500 0.9500 County Extension/41-1 CSD 0.0224 0.0224 0.0224 0.0224 0.0224 911 CSD 0.1618 0.1618 0.1618 0.1618 0.1618 911 Local Option 0.2300 0.2240 0.2000 0.2000 0.2000 County districts paid by all properties 2.9121 2.8159 2.7502 2.7398 2.7311 Rates levied to taxable rural County properties: Sheriff (County) - - - - - Sheriff (Rural) 1.4000 1.4000 1.4000 1.4000 1 Rates levied to incorporated and CSD tax codes: Sheriff (Incorporated) - - - - - Certain County properties are subject to one of the following rates: Bend Library Bond 0.0791 0.0723 Redmond Library Bond - - - - - Sunriver Library Bond 0.0489 0.0475 0.5090 0.0438 - Paid by Black Butte properties only: Black Butte Ranch CSD 1.0499 1.0499 1.0499 1.0499 1.0499 Black Butte Ranch CSD Local Opt 0.5500 0.5500 0.5500 0.5500 0.5500 Paid by Sunriver properties only: Sunriver Service District 3.3100 3.3100 3.3100 3.3100 3.3100 Range of County Direct Rates Paid 2.9121-6.2710 2.8159-6.1734 2.7502-6.1111 2.7398-6.0936 2.7311-6.0411 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 2.8035 Redmond 4.4101 4.4101 4.4101 4.4101 4.4101 Sisters 2.6417 2.6417 2.6417 2.6417 2.6417 La Pine 1.9000 1.9300 1.9800 1.9800 1.9800 Bend Urban Renewal Special Levy - - - - - City of Redmond Bond 0.0870 0.0886 0.0809 0.0809 0.0710 Sunriver Service District 3.3100 3.3100 3.3100 3.3100 3.3100 Redmond Downtown Urban Renewal Levy - - - - - Library district rates 0.5500 0.5500 0.5500 0.5500 0.5500 Fire district rates 1.0924-3.0522 1.0924-3.0691 1.0924-3.0641 1.0924-3.0641 1.0924-2.7317 Parks and recreation district rates 0.2200 - 1.4610 0.2200 - 1.6673 0.2200 - 1.6566 0.2200 - 1.4610 0.2200-1.4610 School district rates 6.6692-8.4108 6.5526-8.4699 6.2181-8.4979 6.4033-8.4012 6.3366-8.4112 Road district rates 0.4377-3.6500 0.9005-3.6500 0.7831-3.0000 1.3081-3.6500 0.8140-3.6500 Other special district rates 0.2895 0.2895 0.2895 0.2895 0.2895 Totals may not add due to rounding 197 Deschutes County, Oregon Principal Property Taxpayers - Current Fiscal and Nine Years Ago 2017 Total $ 558,446,525 Source: Deschutes County Assessor's Department Totals may not add due to rounding 198 2008 Percentage of Total County Taxable Assessed Value Taxable Rank Taxpayer Assessed Value Rank TDS Baja Broadband LLC (Prev Bend Cable) $ 101,773,000 1 Pacificorp (PP&L) 89,081,000 2 Gas Transmission Northwest Corporation 68,905,300 3 Cascade Natural Gas Corporation 55,547,000 4 Touchmark at Mount Bachelor Village LLC 45,800,260 5 Suterra LLC 45,298,850 6 Centurylink Property Tax (Prev Qwest) 42,571,100 7 CVSC LLC 40,163,320 8 Deschutes Brewery Inc 37,997,845 9 Wal-Mart Stores Inc 31,308,850 10 Pronghorn Investors LLC - - Eagle Crest Inc 0.14% - Sunriver Resort Limited Partnership - - Mt. Bachelor Inc 4 - Bend Millwork Systems Inc 36,620,556 - Total $ 558,446,525 Source: Deschutes County Assessor's Department Totals may not add due to rounding 198 2008 Percentage of Total County Taxable Assessed Value Taxable Assessed Value Rank Percentage of Total County Taxable Assessed Value 0.46% $ - - - 0.41% 46,090,000 5 0.29% 0.31% 62,994,056 1 0.40% 0.25% 50,445,000 3 0.32% 0.21% - - - 0.21% - - - 0.19% 61,967,760 2 0.39% 0.18% 31,225,667 9 0.20% 0.17% - - - 0.14% - - - - 49,842,448 4 0.31% 36,620,556 6 0.23% 36,408,430 7 0.23% 34,564,150 8 0.22% - 27,118,610 10 0.17% 2.53% $ 437,276,677 2.76% Deschutes County, Oregon Property Taxes, Levies and Collections - Last Ten Fiscal Years (amounts expressed in thousands) Collected within the Fiscal Year of the Levy Total Collections to Date Fiscal Year Total Tax Levy Collections in Ended June for Fiscal Year Amount Percentage of Subsequent Amount 30, (1) Collected Levy Years Collected 2008 49,203 47,007 95.537% 2,194 2009 56,344 52,961 93.996% 3,380 2010 58,800 55,871 95.018% 2,925 2011 58,521 56,104 95.870% 2,412 2012 57,774 55,921 96.793% 1,846 2013 58,607 57,176 97.557% 1,420 2014 59,380 58,195 98.005% 1,134 2015 62,247 61,220 98.349% 821 2016 65,737 64,747 98.494% 592 2017 68,956 67,895 98.461% - Source: Deschutes County Finance Department (1) Net of discounts and adjustments. Totals may not add due to rounding 199 49,201 56,341 58,795 58,517 57,767 58,596 59,330 62,041 65,339 67,895 Percentage of Levv 99.996% 99.995% 99.992% 99.992% 99.988% 99.980% 99.916% 99.668% 99.395% 98.461% Deschutes County, Oregon Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (dollars in thousands, except per capita) General Limited Fiscal Obligation Tax Year Bonds Bonds Governmental Activities Special Certificates Full Faith Assessment of and Credit Bonds Participation Obligations 30 370 34,225 - - 46,043 - - 45,491 - - 43,352 - - 42,299 - - 39,835 - - 45,773 - - 42,957 - - 40,313 - - 37,711 2008 16,908 12,329 2009 14,392 12,246 2010 11,717 12,137 2011 8,873 11,386 2012 5,853 11,223 2013 2,700 11,026 2014 175 10,799 2015 90 10,536 2016 - 10,235 2017 - 9,899 (1) See page 297 for personal income and population data. n/a - Not available. Totals may not add due to rounding 200 Capital Leases Loans - 250 - 200 - 150 - 140 - 81 - 23 - 149 Deschutes County, Oregon Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (dollars in thousands, except per capita) Business -Type Activities General Full Faith Total Percentage Fiscal Obligation and Credit Primary of Personal Per Year Bonds Obligations Loans Government Income (1) Capita (1) 2008 19,144 17,629 470 101,355 1.80% 654.24 2009 17,630 17,039 453 108,003 1.89% 686.99 2010 15,992 16,432 435 102,354 1.78% 648.20 2011 14,203 15,804 417 94,175 1.58% 592.76 2012 12,260 15,423 399 87,538 1.40% 546.63 2013 9,941 14,695 380 78,600 1.20% 483.62 2014 7,669 13,960 362 78,887 1.11% 474.08 2015 5,247 13,200 343 72,373 0.93% 423.88 2016 2,595 12,793 - 65,936 n/a 373.29 2017 - 11,871 - 59,481 n/a n/a Totals may not add due to rounding 201 Deschutes County, Oregon Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years Last Ten Fiscal Years (dollars in thousands, except per capita) Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. (1) This is the general bonded debt of both governmental and business -type activities. (2) This is the amount restricted for debt service principal payments. (3) See the Schedule of Assessed Value and the Estimated Actual Value of Taxable Property on page 284. (4) Population data can be found in the Schedule of Demographic and Economic Statistics on page 297. Totals may not add due to rounding 202 Percentage of Less: Amounts Estimated General Available in Actual Taxable Fiscal Obligation Debt Service Value of Year Bonds (1) Fund (2) Total Property (3) Per Capita (4) 2008 36,052 655 35,397 0.10% 240.17 2009 32,022 799 31,223 0.08% 206.70 2010 27,709 1,220 26,489 0.08% 176.25 2011 23,076 1,483 21,593 0.10% 146.14 2012 18,113 1,243 16,870 0.08% 114.01 2013 12,641 1,042 11,599 0.06% 78.94 2014 7,844 186 7,658 0.04% 48.26 2015 5,337 358 4,979 0.02% 32.07 2016 2,595 264 2,331 0.01% 15.20 2017 - - - 0.00% - Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. (1) This is the general bonded debt of both governmental and business -type activities. (2) This is the amount restricted for debt service principal payments. (3) See the Schedule of Assessed Value and the Estimated Actual Value of Taxable Property on page 284. (4) Population data can be found in the Schedule of Demographic and Economic Statistics on page 297. Totals may not add due to rounding 202 Deschutes County, Oregon Direct and Overlapping Governmental Activities Debt June 30, 2017 (dollars in thousands) Governmental Unit Debt repaid with property taxes Amount Estimated Applicable to Debt Percentage Primary Outstanding Applicable Government Bend Metro Park & Rec District $ 29,380 100.0000% $ 29,380 Central Oregon Community College 55,125 84.3796% 46,514 Central Oregon Regional Housing Authority 4,533 100.0000% 4,533 City of Bend 53,321 100.0000% 53,321 City of La Pine 415 100.0000% 415 City of Redmond 8,779 100.0000% 8,779 Cloverdale RFPD 2,500 100.0000% 2,500 Crook County School District 50,044 1.0969% 549 Crooked River Ranch RFPD 2,500 8.7840% 220 Deschutes County RFPD 2 (Bend) 1,170 100.0000% 1,170 Deschutes County School District 1 (Bend -La Pine) 235,041 100.0000% 235,041 Deschutes County School District 2 (Redmond) 139,548 94.0618% 131,261 Deschutes County School District 6 (Sisters) 23,077 99.9761% 23,072 HFA Deschutes County 111,750 100.0000% 111,750 High Desert ESD 3,662 91.6758% 3,357 La Pine Parks & Recreation District 410 100.0000% 410 Redmond Area Park & Recreation District 857 100.0000% 857 Redmond Fire & Rescue 904 99.9264% 903 Sisters RFPD (Camp Sherman) 1,865 87.7826% 1,637 Terrebonne Water District 520 100.0000% 520 Subtotal, overlapping debt 656,189 Deschutes County direct debt 47,610 Total direct and overlapping debt $ 703,799 Sources: Oregon State Treasury, Debt Management Information System Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the County. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Deschutes County. This process recognizes that, when considering the County's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore, responsible for repaying the debt, of each overlapping government. Net property -tax backed debt was used as the Debt Outstanding which is derived from the gross property -tax backed debt less self-supporting unlimited general obligations and self supporting limited tax general obligation debt. The direct debt is the total amount of the governmental activities from the "Ratios of Outstanding Debt by Type" Schedule. Totals may not add due to rounding 203 Deschutes County, Oregon Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Legal Debt Margin Calculation for Fiscal Year 2017 Estimated Actual Value $ 32,415,618 Estimated Actual Value $ 32,415,618 Debt limit (2% of estimated actual value) 648,312 Debt limit (1% of estimated actual value) 2 324,156 Debt applicable to limit: Debt applicable to limit: General obligation bonds - Limited tax bonds 47,610 Total net debt applicable to limit - Less: Amount set aside for repayment of debt - Total net debt applicable to limit 47,610 Legal debt margin $ 648,312 Legal debt margin $ 276,546 Fiscal Year 2008 2009 2010 2011 2012 Debt Limit (2%)' $ 738,802 $ 753,830 $ 663,510 $ 470,544 $ 431,674 Total net debt applicable to limit 35,264 31,345 27,141 22,618 17,765 Legal debt margin $ 703,538 $ 722,485 $ 636,369 $ 447,926 $ 413,909 Total net debt applicable to the limit as a percentage of debt limit 4.77% 4.16% 4.09% 4.81% 4.12% Debt Limit (1%) 2 $ 369,401 $ 376,915 $ 331,755 $ 235,272 $ 215,837 Total net debt applicable to limit 46,139 57,509 56,953 53,806 52,137 Legal debt margin $ 323,262 $ 319,406 $ 274,802 $ 181,466 $ 163,700 Total net debt applicable to the limit as a percentage of debt limit 12.49% 15.26% 17.17% 22.87% 24.16% ' ORS 287A.100 provides a debt limit on general obligation bonds of 2% of the real market value of all taxable property within the County's boundaries. This became effective January 1, 2008 superseding ORS 287.054. 2 ORS 287A.105 provides a debt limit on full faith and credit bonds of 1% of the real market value of all taxable property within the County's boundaries. This became effective January 1, 2008 superseding ORS 287.053. Totals may not add due to rounding 204 Deschutes County, Oregon Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Fiscal Year 2013 2014 2015 2016 2017 $ 420,044 $ 443,378 $ 507,239 $ 577,687 $ 648,312 12,260 7,844 5,337 2,595 - $ 407,784 $ 435,534 $ 501,902 $ 575,092 $ 648,312 2.92% 1.77% 1.05% 0.45% 0.00% $ 210,022 $ 221,689 $ 253,619 $ 288,843 $ 324,156 49,647 56,121 53,231 50,357 47,610 $ 160,375 $ 165,568 $ 200,388 $ 238,486 $ 276,546 23.64% 25.32% 20.99% 17.43% 14.69% Totals may not add due to rounding 205 Deschutes County, Oregon Pledged -Revenue Coverage - Last Ten Fiscal Years (dollars in thousands) Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. Totals may not add due to rounding 206 Full Faith and Credit Obligations Special Assessment Bonds - (Series 2000) (Series 2003, 2005, 2007, 2009) Special Special Fiscal Assessment Debt Service Assessment Debt Service Year Collections Principal Interest Coverage Collections Principal Interest Coverage 2008 49 47 4 0.96 390 344 70 0.94 2009 26 30 1 0.84 381 223 46 1.42 2010 - - - - 259 299 71 0.70 2011 - - - - 258 263 48 0.83 2012 - - - - 207 175 36 0.98 2013 - - - - 221 183 27 1.05 2014 - - - - 151 177 19 0.77 2015 - - - - - - - - 2016 - - - - - - - - 2017 - - - - - - - - Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. Totals may not add due to rounding 206 Sources: Population, personal income and per capita personal income information provided by Portland State University, Population Research Center and the Bureau of Economic Analysis. Median age based on data obtained from Portland State University. School enrollment provided by the Oregon Department of Education. Unemployment provided by Oregon Employment Department, Oregon Labor Market Information System. Note: Population information are Census Bureau midyear population estimates. Estimates for July 1, 2016, reflect county population estimates available as of April 2017. Median age figures for 2008-2017 are based on mid -year data tables. School enrollment is based on the census at the start of the 2016-17 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2017 is an average of January through June 2017. n/a - Not available. Totals may not add due to rounding 207 Deschutes County, Oregon Demographic and Economic Statistics - Last Ten Calendar Years Personal Per Income Capita Public (thousands Personal Median School Unemployment Year Population of dollars) Income Age Enrollment Rate 2008 150,113 5,635,347 35,728 40.15 24,421 7.1% 2009 154,920 5,705,290 35,966 39.95 24,578 15.3% 2010 157,211 5,756,539 36,449 40.21 24,106 14.8% 2011 157,905 5,946,037 37,084 40.46 24,437 13.5% 2012 158,875 6,239,199 38,448 40.29 24,168 11.8% 2013 160,140 6,547,882 39,456 40.43 24,518 10.8% 2014 162,525 7,100,843 41,675 40.63 24,790 8.8% 2015 166,400 7,788,057 44,435 40.82 25,302 6.3% 2016 170,740 n/a n/a 40.96 25,598 5.0% 2017 176,635 n/a n/a 41.13 26,446 4.1% Sources: Population, personal income and per capita personal income information provided by Portland State University, Population Research Center and the Bureau of Economic Analysis. Median age based on data obtained from Portland State University. School enrollment provided by the Oregon Department of Education. Unemployment provided by Oregon Employment Department, Oregon Labor Market Information System. Note: Population information are Census Bureau midyear population estimates. Estimates for July 1, 2016, reflect county population estimates available as of April 2017. Median age figures for 2008-2017 are based on mid -year data tables. School enrollment is based on the census at the start of the 2016-17 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2017 is an average of January through June 2017. n/a - Not available. Totals may not add due to rounding 207 Deschutes County, Oregon Principal Employers - Current Year and Nine Years Ago 2017 Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department Totals may not add due to rounding 208 2008 Percentage of Percentage of Rank Employment 1 3.60% Total County 2.40% Employer Employees Rank Employment Employees 7 St. Charles Medical Center 4,006 1 4.81% 2,664 Bend/La Pine School District 1,880 2 2.26% 1,780 Deschutes County 1,051 3 1.26% 1,051 Sunriver Resort 1,000 4 1.20% 950 Central Oregon Community College 957 5 1.15% - Safeway 850 6 1.02% - Redmond School District 824 7 0.99% 744 Mt. Bachelor 770 8 0.92% 886 Fred Meyer 652 9 0.78% - Bend Memorial Clinic 634 10 0.76% - T -Mobile 824 Walmart 623 TRG Cusomter Solutions (formerly iSKY) 564 City of Bend 540 Total Employees of Principal Employers 12,624 13.82% 10,626 Total County Nonfarm Employment 83,290 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department Totals may not add due to rounding 208 2008 Percentage of Total County Rank Employment 1 3.60% 2 2.40% 3 1.42% 4 1.28% 7 1.00% 5 1.20% 6 1.11% 8 0.84% 9 0.76% 10 0.73% 14.34% This page left intentionally blank. Deschutes County, Oregon Full -Time Equivalent County Government Employers by Function/Program - Last Ten Fiscal Years 2008 2009 2010 2011 2012 Function/Program General government Executive General services Judicial Financial Assessment Community development Building services Information technology Other Public protection Law enforcement Corrections Protective inspection Other Protection Public works Streets & highways Sanitation Health & welfare Health Services Recreation & culture Fair & expo center Other Conservation Economic development Total Source: Deschutes County Finance Department Above amounts are for Primary Government 9.65 9.65 9.65 9.65 9.65 50.45 50.45 50.45 49.45 50.45 41.98 41.48 40.48 39.98 39.23 36.75 36.25 32.15 31.25 32.00 36.50 24.40 25.05 19.50 17.50 23.85 24.85 22.95 22.95 22.95 16.44 15.58 16.90 16.90 17.00 8.23 7.09 6.67 6.67 6.57 116.75 118.50 118.50 118.75 118.15 199.05 206.30 199.10 194.60 193.20 37.10 23.60 23.05 13.00 11.10 38.50 40.50 40.50 40.50 41.50 64.50 62.50 61.50 60.50 60.50 26.00 26.00 26.00 22.00 22.00 165.83 167.23 170.98 196.25 214.05 14.00 13.00 13.00 13.00 11.00 3.00 3.00 2.00 2.00 2.00 1.10 1.10 1.10 1.10 1.10 889.68 Totals may not add due to rounding 210 871.48 860.03 858.05 869.95 Deschutes County, Oregon Full -Time Equivalent County Government Employers by Function/Program - Last Ten Fiscal Years 2013 2014 2015 2016 2017 Function/Program General government Executive General services Judicial Financial Assessment Community development Building services Information technology Other Public protection Law enforcement Corrections Protective inspection Other Protection Public works Streets & highways Sanitation Health & welfare Health Services Recreation & culture Fair & expo center Other Conservation Economic development Total Source: Deschutes County Finance Department Above amounts are for Primary Government 9.40 9.40 9.75 9.75 9.75 50.45 51.45 52.05 54.05 54.55 39.73 38.48 38.53 39.53 39.73 31.75 31.00 31.00 33.00 33.00 17.60 17.30 19.30 20.30 21.10 23.45 23.80 23.80 25.20 25.00 16.70 16.70 16.30 16.00 15.70 5.62 5.27 4.47 4.32 4.62 114.46 113.75 113.75 113.75 113.75 190.09 185.00 188.60 199.10 200.10 11.00 12.70 14.70 15.70 23.90 43.50 46.50 52.50 57.50 59.00 56.50 52.75 52.75 53.50 54.00 22.00 22.50 22.50 23.50 23.50 218.80 245.90 248.00 265.25 303.85 10.00 10.00 11.00 11.00 12.00 3.00 3.00 2.00 0.00 0.00 1.10 1.10 0.00 0.00 0.00 865.15 Totals may not add due to rounding 211 886.60 901.00 941.45 993.55 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years Function/Program General Government Building permits issued for new homes Total building permits issued Police Physical arrests Traffic violations Citations issued Warnings Calls for service Traffic stops Solid waste Solid waste collected (tons) Average annual per capita waste generation (pounds) Recyclables collected (tons) Road Street resurfacing (miles) 911 emergency services Emergency calls Police officer initiated calls Fire department initiated calls Fiscal Year 2008 2009 2010 2011 2012 331 176 109 104 127 1,222 797 636 613 643 1,508 1,542 1,592 1,375 1,334 6,165 4,811 3,566 2,504 2,517 7,481 6,842 5,091 4,727 4,317 36,731 35,243 33,315 32,661 33,409 15,606 14,744 12,856 10,202 10,507 257,863 253,418 207,515 192,657 177,113 3,379 3,152 2,485 2,257 2,243 69,717 75,825 65,116 75,365 62,083 10.62 23.53 29.11 6.26 16.10 66,004 59,793 57,978 54,395 59,697 261,420 251,675 242,851 241,785 249,032 19,828 20,820 19,980 19,597 21,048 Source: Deschutes County Community Development Department, Deschutes County Sheriffs Office, Deschutes County Solid Waste Department, Deschutes County Road Department, and 9-1-1 County Service District Totals may not add due to rounding 212 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years Function/Program General Government Building permits issued for new homes Total building permits issued Police Physical arrests Traffic violations Citations issued Warnings Calls for service Traffic stops Solid waste Solid waste collected (tons) Average annual per capita waste generation (pounds) Recyclables collected (tons) Road Street resurfacing (miles) 911 emergency services Emergency calls Police officer initiated calls Fire department initiated calls Fiscal Year 2013 2014 2015 2016 2017 218 327 355 440 555 811 988 1,142 1,309 1,427 1,421 1,451 1,545 1,568 1,797 2,261 2,462 2,189 2,104 2,159 1,906 1,570 1,883 1,547 1,159 33,331 34,187 35,664 34,535 35,285 14,125 14,840 14,698 10,533 12,608 185,692 185,788 193,779 203,896 226,325 2,338 2,320 2,385 2,451 2,591 72,941 72,178 74,097 72,940 80,234 2.50 8.20 7.60 14.57 8.07 58,673 59,886 60,460 62,181 64,158 246,458 249,217 250,369 252,333 256,923 21,541 22,398 23,655 25,308 27,426 Source: Deschutes County Community Development Department, Deschutes County Sheriffs Office, Deschutes County Solid Waste Department, Deschutes County Road Department, and 9-1-1 County Service District Totals may not add due to rounding 213 Deschutes County, Oregon Capital Assets Statistics by Function/Program - Last Ten Fiscal Years Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office Totals may not add due to rounding 214 Fiscal Year 2008 2009 2010 2011 2012 Function/Pro¢ram Public Safety Stations 4 4 4 4 4 Adult correctional facilities 2 2 2 2 2 Special services complex 1 1 1 1 1 Road Streets (miles) 927 927 927 927 927 Streetlights 4 4 4 4 4 Flashing lights 6 5 5 5 5 Signals 2 3 3 3 3 Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office Totals may not add due to rounding 214 Deschutes County, Oregon Capital Asset Statistics by Function/Program - Last Ten Fiscal Years Fiscal Year Totals may not add due to rounding 215 2015 2016 2017 4 2013 2014 Function/ProEram 2 2 Public Safety 1 1 Stations 4 4 Adult correctional facilities 2 2 Special services complex 1 1 Road 3 3 Streets (miles) 927 927 Streetlights 4 4 Flashing lights 5 5 Signals 3 3 Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office Totals may not add due to rounding 215 2015 2016 2017 4 4 4 2 2 2 1 1 1 927 927 927 4 4 32 5 4 5 3 3 3 Audit Comments and Disclosures Required by State Regulations As of and for the Year Ended June 30, 2017 Deschutes County, Oregon Deschutes County, Oregon Audit Comments and Disclosures Required by State Regulations Oregon Administrative Rules 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in audit reports. The required statements and schedules are set forth in the preceding sections of this report. Required comments and disclosures related to the audit of such statements and schedules are set forth in the following pages. PARA EideBailly. CPAs & BUSINESS ADVISORS Independent Auditor's Report Required by Oregon State Regulations To the Deschutes County Commissioners Deschutes County, Oregon Bend, Oregon We have audited the basic financial statements of Deschutes County, Oregon (the County) as of and for the year ended June 30, 2017, and have issued our report thereon dated October 30, 2017. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. Compliance As part of obtaining reasonable assurance about whether the County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. We performed procedures to the extent we considered necessary to address the required comments and disclosures which included, but were not limited to the following: OAR Section 162-010-0000 Preface 162-010-0010 Definitions 162-010-0020 General Requirements 162-010-0030 Contracts 162-010-0050 Financial Statements 162-010-0115 Required Supplementary Information (RSI) 162-010-0120 Supplementary Financial Information 162-010-0130 Schedule of Revenues, Expenditures / Expenses, and Changes in Fund Balances / Net Position, Budget and Actual (Each Fund) 162-010-0140 Schedule of Accountability for Independtly Elected Officials 162-010-0150 Schedule of Property Tax Transactions or Acreage Assessments 162-010-0190 Other Financial or Statistical Information 162-010-0200 Independent Auditor's Review of Fiscal Affairs 162-010-0230 Accounting Records and Internal Control Instance of Non - Compliance Identified Not Applicable Not Applicable None Noted None Noted None Noted None Noted None Noted None Noted 219 What inspires you, inspires us. let's talk. I eideboilly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE Not Applicable None Noted None Noted None Noted None Noted In connection with our testing nothing came to our attention that caused us to believe the County was not in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations. OAR 162-010-0230 Internal Control In planning and performing our audit, we consider the County's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the County's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control or on compliance. This report is an integral part of an audit performed in accordance with Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State, in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. For Eide Bailly LLP Boise, Idaho October 30, 2017 f►KII Instance of Non - OAR Section Compliance Identified 162-010-0240 Public Fund Deposits None Noted 162-010-0250 Indebtedness None Noted 162-010-0260 Budget None Noted 162-010-0270 Insurance and Fidelity Bonds None Noted 162-010-0280 Programs Funded from Outside Sources None Noted 162-010-0295 Highway Funds None Noted 162-010-0300 Investments None Noted 162-010-0310 Public Contracts and Purchasing None Noted 162-010-0315 State School Fund Not Applicable 162-010-0316 Public charter Schools Not Applicable 162-010-0320 Other Comments and Disclosures Not Applicable 162-010-0330 Extensions of Time to Deliver Audit Reports Not Applicable In connection with our testing nothing came to our attention that caused us to believe the County was not in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations. OAR 162-010-0230 Internal Control In planning and performing our audit, we consider the County's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the County's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control or on compliance. This report is an integral part of an audit performed in accordance with Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State, in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. For Eide Bailly LLP Boise, Idaho October 30, 2017 f►KII Single Audit Compliance As of and for the Year Ended June 30, 2017 Deschutes County, Oregon EideBailly. CPAs & BUSINESS ADVISORS Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Deschutes County Commissioners Deschutes County, Oregon Bend, Oregon We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of Deschutes County, Oregon (the County) as of June 30, 2017, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated October 30, 2017. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Deschutes County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Deschutes County's internal control. Accordingly, we do not express an opinion on the effectiveness of Deschutes County's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Deschutes County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 221 What inspires you, inspires us. let's talk. I eideboilly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. �Y� ,/, GI-01�1 o Boise, Idah October 30, 2017 PAX EideBailly. CPAs & BUSINESS ADVISORS Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by the Uniform Guidance To the Deschutes County Commissioners Deschutes County, Oregon Bend, Oregon Report on Compliance for Each Major Federal Program We have audited the Deschutes County, Oregon's (the County) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the County's major federal programs for the year ended June 30, 2017. The County's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on the compliance for each of the County's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the County's compliance. Opinion on Each Major Federal Program In our opinion, the County has complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2017. Report on Internal Control over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. 223 What inspires you, inspires us. let's talk. I eideboilly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. .� G r° Boise, Idaho October 30, 2017 224 Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2017 See notes to schedules of expenditures of federal awards 225 Totals may not add due to rounding Accrued or Accrued or Federal Program or (Deferred) (Deferred) CFDA Award or Pass- Award Revenues July Revenues June Federal Grantor / Pass Through Grantor / Program Title Number Through Number Amount 1, 2016 Receipts Expenditures 30, 2017 U.S. Department of Agriculture Direct Programs Forest Service Cooperative Forestry Assistance -Southern 14 -DG -11062752 - Deschutes Fuels Project 10.664 733 $ 175,300 $ - $ 140,991 $ 140,991 $ Cooperative Forestry Assistance-Whychus Creek and 15 -DG -11062765 - Canyon Fuels Reduction Project 10.664 727 88,625 2,255 - 8,666 10,921 Cooperative Forestry Assistance -Deschutes County 16 -DG -11062765 - Greater La Pine Basin Cohesive Strategy 10.664 704 102,951 - 3,000 4,327 1,327 Schools and Roads -Public Education and Outreach 14 -DG -11060120 - for Noxious Weed Control 10.665 041 23,750 5,039 10,200 8,193 3,033 Schools and Roads -Public Education and Outreach 16 -DG -11060120 - for Noxious Weed Control 10.665 034 14,250 - - 1,173 1,173 Pass Through Programs State Department of Education School Breakfast Program 10.553 0904001 7,285 822 6,754 7,285 1,353 National Lunch School Program 10.555 0904001 15,107 1,522 14,142 15,107 2,487 State Administrative Expense Reallocation 10.560 0904001 78 - 36 78 42 Oregon Health Authority Special Supplemental Nutrition Program for Women, Infants and Children 10.557 280559/280664 638,502 55,739 775,527 640,924 (78,864) Supplemental Program for WIC Business Operations for iPad and Breastfeeding Texting Support 10.578 280705 6,089 - 5,290 6,089 799 Watershed Research and Training Center Fire Adapted Communities Learning Network 10.664 194_2016_208 24,776 24,776 24,776 - State Department of Administrative Services Schools and Roads: Grants to States Title I 10.665 None 508,711 508,711 508,711 Title III 10.665 None - (327,854) - 56,798 (271,056) Total Department of Agriculture 1,423,118 U.S. Department of the Interior Pass Through Programs State Department of Administrative Services Non -Sale Disposals of Mineral Material 15.214 None 155,297 155,297 155,297 Distribution of Receipts to State and Local Governments 15.227 None 5,927 (34,434) 5,927 - (40,361) State Historic Preservation Office Historic Preservation Fund Grants 15.904 OR -15-06 13,000 7,974 7,974 - - Historic Preservation Fund Grants 15.904 OR -17-06 12,500 - - 703 703 Total Department of the Interior 156,000 U.S. Department of Justice Direct Programs Violence Against Women Office Supervised Visitation: Safe Havens for Children 16.527 2013-FL-AX-KO19 120,909 28,004 61,789 33,785 - Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 2014 -WE -AX -0055 299,820 22,027 99,340 112,871 35,558 Bureau of Justice Assistance State Criminal Alien Assistance Program 16.606 2016 -AP -BX -0287 542 - 542 542 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 2016 -DJ -BX -0481 33,730 33,730 33,730 See notes to schedules of expenditures of federal awards 225 Totals may not add due to rounding Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2017 See notes to schedules of expenditures of federal awards 226 Totals may not add due to rounding Federal 63,612 40,547 CFDA Award or Pass - Federal Grantor / Pass Through Grantor / Program Title Number Through Number Pass Through Programs Award Revenues July State Department of Justice 40,048 Revenues June Crime Victim Assistance 16.575 2015-DAVAP-00031 Crime Victim Assistance 16.575 2016-DAVAP-00089 Bureau of Justice Assistance 81,276 93,021 Harold Rogers Prescription Drug Monitoring 33,385 140,627 Program 16.754 280535 Total Department of Justice 47,253 19,591 U.S. Department of Transportation 40,000 - Pass Through Programs 40,000 8,283 Oregon Department of Transportation 132 (3) Enhanced Mobility of Seniors and Individuals with 132 8 Individuals with Disabilities 20.513 Mar -84 Total Department of Transportation - 119,922 U.S. General Services Administration 138,456 119,922 Pass Through Programs 120,192 - State Department of Administrative Services 120,192 - Acquisition of Federal Surplus Real Property 39.003 None Total General Services Administration 250 U.S. Environmental Protection Agency 250 - Direct Programs 13,222 - Office of Solid Waste and Emergency Response 13,222 - Brownfields Assessment and Cleanup Cooperative 1,763 13,885 Agreements -RECOVERY 66.818 OOJ80001 Pass Through Programs 5,492 5,492 Oregon Health Authority 311,086 - State Public Water System Supervision 66.432 280557 Capitalization Grants for Drinking - 262,217 Water State Revolving Fund -RECOVERY 66.468 280655 Total Environmental Protection Agency 90,166 90,320 U.S. Department of Health and Human Services Direct Programs 1,364,721 Substance Abuse and Mental Health Services Administration Alliance for Substance Abuse Prevention 93.276 IH79SP021072-01 Pass Through Programs Oregon Health Authority Public Health Emergency Preparedness 93.069 280619 Public Health Emergency Preparedness - Ebola Supplement 93.074 280620 ACA Personal Responsibility Education Program 93.092 280529 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.116 280549 Projects for Assistance in Transition from Homelessness (PATH) 93.150 207001 Family Planning: Services 93.217 280558 Youth Suicide Prevention/Intervention 93.243 250051/280649 State and Local Public Health Actions to Prevent Obesity, Diabetes, Heart Disease and Stroke (PPHF) 93.757 280724 National Bioterrorism Hospital Preparedness Program 93.889 280609 HIV Care Formula Grants 93.917 280544 HIV Prevention Activities -Health Department Based 93.940 280501 Assistance Programs for Chronic Disease Prevention and Control 93.945 280624 Block Grants for Community Mental Health Services 93.958 112001 Block Grants for Prevention and Treatment of Substance Abuse 93.959 135001 Maternal and Child Health Services Block Grant to States 93.994 180514 Total Department of Health and Human Services See notes to schedules of expenditures of federal awards 226 Totals may not add due to rounding 87,371 10,921 32,763 32,766 10,924 32,766 6,875 6,875 6,875 6,875 400,000 Accrued or 63,612 40,547 Accrued or Program or (Deferred) 33,795 33,792 (Deferred) Award Revenues July 37,548 40,048 Revenues June Amount 1, 2016 Receipts Expenditures 30, 2017 125,000 22,837 81,276 93,021 263,084 33,385 140,627 107,242 117,733 61,354 27,662 47,253 19,591 - 40,000 - 31,717 40,000 8,283 17,030 132 (3) 347,761 132 87,371 10,921 32,763 32,766 10,924 32,766 6,875 6,875 6,875 6,875 400,000 23,065 63,612 40,547 - 93,862 2,819 33,795 33,792 2,816 40,048 2,506 37,548 40,048 5,006 114,387 125,000 22,837 81,276 93,021 34,582 117,733 8,510 113,603 117,733 12,640 - 1,379 1,379 - - 119,204 8,205 110,379 119,204 17,030 132 (3) 121 132 8 94,000 - 94,000 94,000 - 119,922 40,472 138,456 119,922 21,938 120,192 - 120,192 120,192 - 5,119 166 5,119 4,953 250 250 250 - 13,222 - 13,222 13,222 - 13,228 1,763 13,885 13,228 1,106 - 5,492 5,492 5,492 5,492 311,086 - 311,086 311,086 - 262,217 - 262,217 262,217 - 90,150 7,534 90,166 90,320 7,688 1,364,721 Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2017 Total Federal Assistance ' Expenditures include funds utilized by a fiduciary organization in the amount of $372,434 See notes to schedules of expenditures of federal awards 227 Totals may not add due to rounding Accrued or Accrued or Federal Program or (Deferred) (Deferred) CFDA Award or Pass- Award Revenues July Revenues June Federal Grantor / Pass Through Grantor / Program Title Number Through Number Amount 1, 2016 Receipts Expenditures 30, 2017 Department of Homeland Security Pass Through Programs Department of State Police Emergency Management Performance Grant 97.042 15-509 110,023 25,331 25,331 - - Emergency Management Performance Grant 97.042 16-509 108,874 - 71,065 104,002 32,937 Oregon Military Department Central Oregon Wildfire Mitigation 97.047 EMS -2013 -PC -001 3,000,000 120,660 331,234 259,783 49,209 State Homeland Security Program Grant 97.067 16-224 16,000 - - 11,200 11,200 State Homeland Security Program Grant 97.067 16-225 60,000 9,406 9,406 - Total Department of Homeland Security 384,391 Office of National Drug Control Policy Pass Through Programs State Department of Justice High Intensity Drug Traffic Area (HIDTA) ' 95.001 None 10,901 409,625 400,530 1,806 Total Office of National Drug Control Policy 400,530 7 114,949 $ 4,455,719 7 4,230,550 $ (110,220) Total Federal Assistance ' Expenditures include funds utilized by a fiduciary organization in the amount of $372,434 See notes to schedules of expenditures of federal awards 227 Totals may not add due to rounding Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2017 Note 1 - Purpose of this Schedule The accompanying Schedule of Expenditures of Federal Awards is a supplementary schedule to Deschutes County, Oregon's (the County) basic financial statements and is presented for purposes of additional analysis. Because the schedule presents only a selected portion of the activities of the County, it does not present the financial position, changes in financial position, or the cash flows of the County. Note 2 - Significant Accounting Policies A. Reporting Entity The reporting entity is fully described in Note I.A. to the County's basic financial statements. The schedule includes all federal programs administered by the primary government for the fiscal year ended June 30, 2017. B. Basis of Presentation The information in the schedule is presented in accordance with the Uniform Guidance. C. Federal Financial Assistance Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and is reported on the schedule (if applicable). Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the County and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. The County has elected to use the 10% de minimus cost rate D. Major Programs The Uniform Guidance establishes criteria to be used in defining major programs. Major programs are those programs selected for testing using a risk -assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. E. Basis of Accounting Receipts and expenditures are accounted for using the modified accrual basis of accounting. Revenues are recorded when measurable and available, or in the case of grants where expenditure is the prime factor for determining eligibility, when the expenditure is made. Expenditures are recorded when a liability is incurred. f*41- Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2017 Note 3 - Schedule of Federal Awards by Department and Program The Schedule of Expenditures of Federal Awards is organized by federal department and the organization the County contracted with; either the federal government (direct) or a non-federal entity (pass-through). As a result, total federal expenditures by Catalog of Federal Domestic Assistance (CFDA) number are not apparent. The Schedule of Federal Awards by Department and Program as of June 30, 2017, beginning on page 230, summarizes expenditures of federal awards by CFDA number regardless of who is contracted with the County. Note 4 - Schedule of Federal Awards by Cluster The Schedule of Expenditures of Federal Awards contains various programs that are considered to be "clusters". As defined by the Uniform Guidance, a cluster of programs are those Federal programs with different CFDA numbers that are closely related and share common compliance requirements. The Schedule of Federal Awards by Cluster for the year ended June 30, 2017, on page 299, is provided to disclose this information. 229 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program Fiscal Year Ended June 30, 2017 Department / Program Title U.S. Department of Agriculture School Breakfast Program National School Lunch Program Special Supplemental Nutrition Program for Women, Infants, and Children Texting Support State Administrative Expense Reallocation Cooperative Forestry Assistance Schools and Roads - Grants to States Total Department of Agriculture U.S. Department of the Interior Non -Sale Disposals of Mineral Material Historic Preservaton Fund Grants Total Department of the Interior U.S. Department of Justice Supervised Visitation, Safe Havens for Children Crime Victim Assistance Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program State Criminal Alien Assistance Program Edward Byrne Memorial Justice Assistance Grant Program Harold Rogers Prescription Drug Monitoring Total Department of Justice U.S. Department of Transportation Enhanced Mobility of Seniors and Individuals with Disabilities Total Department of Transportation U.S. General Services Administration Disposal of Federal Surplus Real Property U.S. Environmental Protection Agency State Public Water System Supervision Capitalization Grants for Drinking Water State Revolving Funds Brownfields Assessment and Cleanup Cooperative Agreements Total Environmental Protection Agency Totals may not add due to rounding 230 CFDA Number Expenditures 10.553 $ 7,285 10.555 15,107 10.557 640,924 10.578 6,089 10.560 78 10.664 178,760 10.665 574,875 1,423,118 15.214 155,297 15.904 703 156,000 16.527 33,785 16.575 126,833 16.590 112,871 16.606 542 16.738 33,730 16.754 40,000 347,761 20.513 32,766 32,766 39.003 6,875 66.432 33,792 66.468 40,048 66.818 40,547 114,387 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program Fiscal Year Ended June 30, 2017 Department / Program Title CFDA Number Expenditures U.S. Department of Health and Human Services Public Health Emergency Preparedness 93.069 117,733 ACA Personal Responsibility Education Program 93.092 119,204 Project Grants and Cooperative Agreements 93.116 132 Projects for Assistance in Transition from Homelessness (PATH) 93.150 94,000 Family Planning Services 93.217 119,922 Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 120,192 Alliance for Substance Abuse Prevention 93.276 93,021 State and Local Public Health Actions to Prevent Obesity, Diabetes, Heart Disease and Stroke (PPHF) 93.757 4,953 HIV Care Formula Grants 93.917 13,222 HIV Prevention Activities -Health Department Based 93.940 13,228 Assistance Programs for Chronic Disease Prevention and Control 93.945 5,492 Block Grants for Community Mental Health Services 93.958 311,086 Block Grants for Prevention and Treatment of Substance Abuse 93.959 262,217 Maternal and Child Health Services Block Grant to the States 93.994 90,320 Total Health and Human Services 1,364,721 Office of National Drug Control Policy High Intensity Drug Trafficking Areas Program 95.001 400,530 Total Office of National Drug Control Policy 400,530 U.S. Department of Homeland Securit Emergency Management Performance Grants 97.042 104,002 Central Oregon Wildfire Mitigation 97.047 259,783 State Homeland Security Program Grant 97.067 20,606 384,391 Total Federal Assistance $ 4,230,550 Totals may not add due to rounding 231 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Cluster Fiscal Year Ended June 30, 2017 Federal Awards by Cluster Program Child Nutrition Cluster Program School Breakfast Program National School Lunch Program Total Child Nutrition Cluster Program Forest Service Schools and Roads Cluster Program Schools and Roads - Grants to States Total Forest Service Schools and Roads Cluster Program Transit Service Programs Cluster Program Enhanced Mobility of Seniors and Individuals with Disabilities Total Transit Service Programs Cluster Program Capitalization Grants for Drinking Water Cluster Program Capitalization Grants for Drinking Water State Revolving Funds Total Capitalization Grants for Drinking Water Cluster Program Totals may not add due to rounding 232 CFDA Number Expenditures 10.553 $ 7,285 10.555 15,107 22,392 10.665 574,875 574,875 20.513 32,766 32,766 66.468 40,048 40,048 Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2017 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: Material weaknesses identified? No Significant deficiencies identified not considered to be material weaknesses? None Reported Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: Material weaknesses identified? No Significant deficiencies identified not considered to be material weaknesses? None Reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section 510(a)? No Identification of major programs tested: Name of Federal Program CFDA Number U. S. Department of Agriculture Direct Programs Schools and Roads — Grants to States 10.665 U. S. Department of Agriculture Indirect Programs Oregon Health Authority Special Supplemental Nutrition Program for Women, Infants and Children 10.557 Block Grants for Community Mental Health Services 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.959 Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? No Pitt] Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2017 Section 11- Financial Statement Findings None Noted Section III Federal Award Findings and Questioned Costs None Noted 234